1 00:00:02,520 --> 00:00:13,760 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg 2 00:00:13,840 --> 00:00:17,920 Speaker 1: Surveillance Podcast. Catch us live weekdays at seven am Eastern 3 00:00:18,200 --> 00:00:21,240 Speaker 1: on Apple car Play or Android Auto with the Bloomberg 4 00:00:21,320 --> 00:00:24,840 Speaker 1: Business App. Listen on demand wherever you get your podcasts, 5 00:00:25,280 --> 00:00:27,000 Speaker 1: or watch us live on YouTube. 6 00:00:27,160 --> 00:00:29,840 Speaker 2: Mirror Pandit Global Market Strategies is chaping Morgan. She's got 7 00:00:29,880 --> 00:00:31,880 Speaker 2: a real job, Mirror. Are you guys in the new 8 00:00:31,880 --> 00:00:32,440 Speaker 2: building yet? 9 00:00:32,560 --> 00:00:33,040 Speaker 3: Three weeks? 10 00:00:33,080 --> 00:00:35,839 Speaker 2: Three weeks, we move in three weeks, you will move in. 11 00:00:35,880 --> 00:00:38,520 Speaker 4: We will move after waiting for six years. I did 12 00:00:38,520 --> 00:00:41,720 Speaker 4: still love the old two seventy Park, pretty spectacular. 13 00:00:41,840 --> 00:00:43,800 Speaker 2: I spent a lot of long nights at two Sydney Park. 14 00:00:43,880 --> 00:00:44,080 Speaker 3: Do it? 15 00:00:44,680 --> 00:00:46,440 Speaker 5: I have to ask what is happening to that building? 16 00:00:46,479 --> 00:00:48,640 Speaker 5: Do you know the old building that was torn down? 17 00:00:49,200 --> 00:00:51,440 Speaker 4: They took it down piece by piece over the course 18 00:00:51,440 --> 00:00:53,080 Speaker 4: of the pandemic, very methodic. 19 00:00:53,159 --> 00:00:55,440 Speaker 2: Yep, right on the same spot. And now they're going 20 00:00:55,480 --> 00:00:57,880 Speaker 2: to redo the old bear Stearns building, which they own. 21 00:00:58,080 --> 00:01:01,400 Speaker 2: But there's something across the stirs side. Okay, there's so 22 00:01:01,400 --> 00:01:04,480 Speaker 2: many buildings they own Midtown. They on Midtown. All right, 23 00:01:04,520 --> 00:01:08,120 Speaker 2: here's the question. It's eight forty two am. I'm probably 24 00:01:08,200 --> 00:01:09,919 Speaker 2: not even the first person to ask you this today. 25 00:01:10,200 --> 00:01:11,640 Speaker 2: Is AI a bubble. 26 00:01:12,200 --> 00:01:14,039 Speaker 4: When we think about some of the fundamentals that we're 27 00:01:14,040 --> 00:01:16,679 Speaker 4: seeing in AI, we do not see a bubble at 28 00:01:16,680 --> 00:01:19,280 Speaker 4: this point, but certainly there's a lot of exuberance around it. 29 00:01:19,319 --> 00:01:20,720 Speaker 2: So there's a couple of things we're watching. 30 00:01:20,959 --> 00:01:22,760 Speaker 4: We want to make sure that we continue to see 31 00:01:22,760 --> 00:01:27,399 Speaker 4: these companies produce revenue to monetize their technology. 32 00:01:27,040 --> 00:01:28,479 Speaker 2: Not to take on too much leverage. 33 00:01:28,520 --> 00:01:30,839 Speaker 4: Look, a little bit of financing from the capital markets, 34 00:01:30,959 --> 00:01:34,480 Speaker 4: from the debt market specifically, is okay. That's good capital allocation, 35 00:01:34,560 --> 00:01:37,080 Speaker 4: but we don't want to see too much leverage, and 36 00:01:37,120 --> 00:01:40,000 Speaker 4: we want to make sure that that adoption continues. The 37 00:01:40,120 --> 00:01:43,160 Speaker 4: risks are around if that adoption doesn't continue, if it 38 00:01:43,160 --> 00:01:46,160 Speaker 4: starts to tail off, if people aren't actually using the 39 00:01:46,200 --> 00:01:50,560 Speaker 4: paid versions of these technologies, or if it's more of 40 00:01:50,560 --> 00:01:53,640 Speaker 4: a consumer technology as opposed to an enterprise technology. 41 00:01:53,920 --> 00:01:55,840 Speaker 2: We want to make sure that the energy supply is 42 00:01:55,880 --> 00:01:56,560 Speaker 2: still there. 43 00:01:56,720 --> 00:02:00,600 Speaker 4: We want to ensure that the circularity of deals is 44 00:02:00,800 --> 00:02:03,480 Speaker 4: one that is necessary to build up the industry, but 45 00:02:03,560 --> 00:02:07,520 Speaker 4: not necessarily getting too incestuous in terms of if there 46 00:02:07,560 --> 00:02:10,800 Speaker 4: is something that falls down, but overall, we do still 47 00:02:10,840 --> 00:02:12,560 Speaker 4: feel like we're in a good place when we come 48 00:02:12,560 --> 00:02:15,200 Speaker 4: out of earning season, and we still see those earning 49 00:02:15,240 --> 00:02:17,720 Speaker 4: surprises of the Maget seven that have reported so far 50 00:02:18,360 --> 00:02:22,640 Speaker 4: above ten percent, and also investors being discerning about the 51 00:02:22,639 --> 00:02:25,400 Speaker 4: companies that they do feel good about the pipeline versus 52 00:02:25,400 --> 00:02:27,840 Speaker 4: ones where they are a little bit more cautious. So 53 00:02:27,880 --> 00:02:30,959 Speaker 4: you're seeing some of that market reaction commensurate with how 54 00:02:31,000 --> 00:02:32,280 Speaker 4: these companies are reporting. 55 00:02:32,320 --> 00:02:34,040 Speaker 2: But there's a lot of momentum in this space for 56 00:02:34,080 --> 00:02:34,560 Speaker 2: good reason. 57 00:02:35,240 --> 00:02:38,600 Speaker 5: Speaking of earnings, we've got Ai Darling Palenteer actually getting 58 00:02:38,880 --> 00:02:41,160 Speaker 5: slammed in the pre market. Last I checked, was down 59 00:02:41,160 --> 00:02:44,960 Speaker 5: about seven percent, even though earnings are pretty spectacular. So 60 00:02:45,000 --> 00:02:50,960 Speaker 5: are traders now finally moving their focus to valuations and 61 00:02:51,080 --> 00:02:52,000 Speaker 5: do they make sense? 62 00:02:52,040 --> 00:02:52,640 Speaker 3: Do they fit? 63 00:02:53,400 --> 00:02:56,079 Speaker 4: We need to make sure that when we think about 64 00:02:56,160 --> 00:02:58,799 Speaker 4: some of the activity within the markets, that there are 65 00:02:59,000 --> 00:03:02,240 Speaker 4: periods of healthy consolidation and healthy correction. We saw that 66 00:03:02,280 --> 00:03:04,760 Speaker 4: earlier this year in January with deep seek. We saw 67 00:03:04,800 --> 00:03:07,880 Speaker 4: that also in April around some of the tariff concerns, 68 00:03:08,080 --> 00:03:09,679 Speaker 4: and even if we look over the arc of the 69 00:03:09,760 --> 00:03:12,880 Speaker 4: last couple of years, you have seen significant double digit 70 00:03:13,000 --> 00:03:15,840 Speaker 4: draw downs sometimes in some of these individual stocks, sometimes 71 00:03:15,840 --> 00:03:18,240 Speaker 4: in the cohort around either the MAG seven or the 72 00:03:18,280 --> 00:03:21,760 Speaker 4: AI trade. I think that is a healthy thing. Even 73 00:03:21,800 --> 00:03:23,920 Speaker 4: within the scheme of a longer bowl market in some 74 00:03:24,000 --> 00:03:26,400 Speaker 4: of these stocks, you're still going to have these periods 75 00:03:26,400 --> 00:03:29,480 Speaker 4: of volatility, and investors need to be prepared around that 76 00:03:29,560 --> 00:03:32,200 Speaker 4: and have that cushioning in their portfolio for when we 77 00:03:32,240 --> 00:03:34,840 Speaker 4: do see days like this in certain stocks. 78 00:03:35,600 --> 00:03:37,680 Speaker 2: Even if this is a longer. 79 00:03:37,320 --> 00:03:40,560 Speaker 4: Bowl trend, we do have to remind ourselves that this 80 00:03:40,640 --> 00:03:44,360 Speaker 4: can be cyclical. There's a chip cycle, there's a Capex cycle. 81 00:03:44,560 --> 00:03:46,200 Speaker 4: There are going to be fits and starts in terms 82 00:03:46,240 --> 00:03:49,760 Speaker 4: of how the competitive landscape and the competitive moats change. 83 00:03:49,920 --> 00:03:53,840 Speaker 4: So in that regard, having a good sense of diversification 84 00:03:54,080 --> 00:03:56,720 Speaker 4: within the AI theme and beyond the AI theme will 85 00:03:56,720 --> 00:03:57,320 Speaker 4: be important. 86 00:03:57,400 --> 00:03:59,560 Speaker 2: We should expect days like this. We're about two thirds 87 00:03:59,600 --> 00:04:01,400 Speaker 2: of the way earnings the S and P five hundred. 88 00:04:01,440 --> 00:04:03,640 Speaker 2: What have you taken? What's been your takeaway so far? 89 00:04:04,280 --> 00:04:07,040 Speaker 4: The standout to me has been around financials because we 90 00:04:07,080 --> 00:04:08,920 Speaker 4: have seen that financials has been one of the biggest 91 00:04:08,960 --> 00:04:13,240 Speaker 4: contributors to upside EPs and all of the subsectors have 92 00:04:13,280 --> 00:04:16,200 Speaker 4: actually had double digit growth so that has been a 93 00:04:16,240 --> 00:04:18,320 Speaker 4: standout outside of tech, and I think it's one of 94 00:04:18,360 --> 00:04:22,039 Speaker 4: the few areas of the market that is not embedded 95 00:04:22,080 --> 00:04:24,160 Speaker 4: in the AI trade, because you do see areas like 96 00:04:24,200 --> 00:04:27,400 Speaker 4: industrials and utilities as good ways to diversify along the 97 00:04:27,440 --> 00:04:30,919 Speaker 4: AI spectrum, but it's not outside of the realm of AI, 98 00:04:31,279 --> 00:04:33,680 Speaker 4: and you're still seeing that the macro fundamentals they are 99 00:04:33,720 --> 00:04:37,839 Speaker 4: seeing the financials companies are solid. They are exposed to 100 00:04:37,920 --> 00:04:41,200 Speaker 4: consumers all along the income spectrum, and still feel confident 101 00:04:41,200 --> 00:04:44,760 Speaker 4: about the state of the economy. And the enthusiasm about deregulation, 102 00:04:44,880 --> 00:04:48,920 Speaker 4: even if it's been passive, deregulation thus far has been helpful. 103 00:04:48,960 --> 00:04:50,320 Speaker 2: So that's my big takeaway. 104 00:04:50,360 --> 00:04:54,320 Speaker 4: Contributing to this four quarter now streak of double digit 105 00:04:54,360 --> 00:04:56,640 Speaker 4: earnings growth within the market, Yeah. 106 00:04:56,400 --> 00:04:58,440 Speaker 2: We've got some pretty solid earnings numbers. We've got a 107 00:04:58,480 --> 00:05:00,880 Speaker 2: FED that's cutting that's not surprised to see this market 108 00:05:01,200 --> 00:05:03,560 Speaker 2: marching hired despite the pullback we're seeing here today. Mere Panda, 109 00:05:03,600 --> 00:05:05,680 Speaker 2: thank you so much for joining us. Mere Panda, Global 110 00:05:05,720 --> 00:05:09,280 Speaker 2: Market Strategist JP Morian Asset Management, Stay with us. More 111 00:05:09,320 --> 00:05:11,600 Speaker 2: from Bloomberg Surveillance coming up after this. 112 00:05:17,839 --> 00:05:21,400 Speaker 1: You're listening to the Bloomberg Surveillance Podcast. Catch us live 113 00:05:21,480 --> 00:05:24,640 Speaker 1: weekday afternoons from seven to ten am Eastern. Listen on 114 00:05:24,720 --> 00:05:28,400 Speaker 1: Applecarplay and Android Otto with the Bloomberg Business app, or 115 00:05:28,520 --> 00:05:29,960 Speaker 1: watch us live on YouTube. 116 00:05:30,080 --> 00:05:32,520 Speaker 5: Traders woke up this morning Paul and said, I don't know. 117 00:05:32,600 --> 00:05:34,320 Speaker 5: Could the market be overvalue right? 118 00:05:34,360 --> 00:05:36,840 Speaker 2: Exactly? It's almost out valuations today. 119 00:05:37,360 --> 00:05:39,839 Speaker 5: We've got a couple of big Wall Street CEO's flashing 120 00:05:39,839 --> 00:05:44,240 Speaker 5: warning signs about this market possibly being overvalued, saying we 121 00:05:44,279 --> 00:05:45,920 Speaker 5: could be in for a big pullback by as much 122 00:05:45,920 --> 00:05:48,920 Speaker 5: as ten percent in the next twelve to twenty four months. 123 00:05:49,040 --> 00:05:51,680 Speaker 2: Let's talk. Anybody can say that. I mean, it's just like, 124 00:05:51,839 --> 00:05:53,960 Speaker 2: I'm so glad you said it. I mean, I don't 125 00:05:53,960 --> 00:05:55,760 Speaker 2: talk to their traders on their desk. I don't want 126 00:05:55,760 --> 00:05:57,160 Speaker 2: to hear from these folks. I want to hear from 127 00:05:57,200 --> 00:05:58,120 Speaker 2: the traders on the desk. 128 00:05:58,240 --> 00:05:58,640 Speaker 5: I hear you. 129 00:05:58,680 --> 00:06:00,560 Speaker 2: Well, let's bring in. Let's bring in Jennifer Lee. 130 00:06:00,600 --> 00:06:00,760 Speaker 6: Now. 131 00:06:00,760 --> 00:06:05,000 Speaker 5: She is the senior economist at BMO Capital Markets. Jennifer, 132 00:06:05,040 --> 00:06:07,360 Speaker 5: thanks for being with us on a very very busy 133 00:06:07,480 --> 00:06:10,960 Speaker 5: both business news day, political news day. Just I know 134 00:06:11,000 --> 00:06:13,320 Speaker 5: you're an economist. Just want your thoughts though, on what 135 00:06:13,360 --> 00:06:16,159 Speaker 5: we're hearing from these big CEOs, Morgan Stanley's Ted Pitt 136 00:06:16,160 --> 00:06:18,880 Speaker 5: Goldman sacks as David Solomon, saying that this market's due 137 00:06:18,920 --> 00:06:21,440 Speaker 5: for a ten percent pullback in the next twelve to 138 00:06:21,440 --> 00:06:23,680 Speaker 5: twenty four months. To Paul's point, I don't think you 139 00:06:23,720 --> 00:06:27,080 Speaker 5: need a degree to in finance to maybe think this 140 00:06:27,160 --> 00:06:28,080 Speaker 5: market's overvalued. 141 00:06:28,080 --> 00:06:29,120 Speaker 2: What are your thoughts? 142 00:06:30,560 --> 00:06:32,159 Speaker 6: Well, good morning, and thank you very much for having 143 00:06:32,200 --> 00:06:36,239 Speaker 6: me on this very busy Tuesday. You know what, it's 144 00:06:36,520 --> 00:06:39,760 Speaker 6: definitely not my role to make calls on the equity markets, 145 00:06:40,279 --> 00:06:42,679 Speaker 6: but I will say this, just given all of these 146 00:06:42,800 --> 00:06:44,760 Speaker 6: balls that are in the air, that some of them 147 00:06:44,760 --> 00:06:47,000 Speaker 6: are being dropped and some of them are being caught, 148 00:06:47,160 --> 00:06:50,040 Speaker 6: you know, there's this It's a whole word of uncertainty, 149 00:06:50,040 --> 00:06:51,960 Speaker 6: and this is the world that we are living in now, 150 00:06:52,320 --> 00:06:55,799 Speaker 6: which could cause a lot of chaos in almost everywhere, 151 00:06:55,880 --> 00:06:58,480 Speaker 6: you know, and certainly I'm sure it caused a lot 152 00:06:58,520 --> 00:07:03,280 Speaker 6: of high level discussions or heated discussions at the latest 153 00:07:03,680 --> 00:07:06,039 Speaker 6: FED meeting as an example, which is why we saw 154 00:07:06,120 --> 00:07:09,360 Speaker 6: so many different views that are being displayed right now 155 00:07:09,400 --> 00:07:13,840 Speaker 6: or being projected out to the world about how they 156 00:07:13,960 --> 00:07:18,600 Speaker 6: see the monetary policy playing out. So again just circainly 157 00:07:18,640 --> 00:07:20,880 Speaker 6: around your question right there, just basically saying that, you know, 158 00:07:21,200 --> 00:07:24,200 Speaker 6: uncertainty is the driver for a lot of these movements, 159 00:07:24,200 --> 00:07:24,920 Speaker 6: these stays. 160 00:07:25,040 --> 00:07:27,400 Speaker 2: And Jen, we had the FED cutting interest rates by 161 00:07:27,440 --> 00:07:30,400 Speaker 2: twenty five basis points as we as a market all expected, 162 00:07:30,440 --> 00:07:34,240 Speaker 2: I guess. But December kind of in question here, with 163 00:07:34,320 --> 00:07:38,080 Speaker 2: the dearth of economic data out there, how do you 164 00:07:38,120 --> 00:07:39,640 Speaker 2: think they're going to proceed come December? 165 00:07:41,160 --> 00:07:42,880 Speaker 6: I really okay, So I have to make I sort 166 00:07:42,920 --> 00:07:45,120 Speaker 6: of I rolled what I heard for the chair policy. 167 00:07:44,800 --> 00:07:47,080 Speaker 3: Of this line, but it's very very accurate. You know. 168 00:07:47,200 --> 00:07:48,680 Speaker 3: He said, what do you do when you're driving in 169 00:07:48,720 --> 00:07:49,080 Speaker 3: a fog? 170 00:07:49,200 --> 00:07:52,320 Speaker 6: You slow things down, You tap on the brakes a 171 00:07:52,320 --> 00:07:54,880 Speaker 6: little bit, And that's what they are doing. We are 172 00:07:54,960 --> 00:07:58,040 Speaker 6: still looking for a FED rate cut another twenty five 173 00:07:58,040 --> 00:08:02,520 Speaker 6: PEPs in December. You know, obviously if we are still 174 00:08:02,800 --> 00:08:05,520 Speaker 6: in shutdown mode, you know, that would be it's almost 175 00:08:05,560 --> 00:08:07,640 Speaker 6: like it will it would almost be another cause for 176 00:08:08,280 --> 00:08:11,920 Speaker 6: cutting rates, just because there is just so much again uncertainty. 177 00:08:12,160 --> 00:08:14,000 Speaker 6: We have one hundred and fifty thousand people who are 178 00:08:14,000 --> 00:08:16,760 Speaker 6: furloughed and still and not getting paid, and of course 179 00:08:16,760 --> 00:08:19,520 Speaker 6: we're seeing a little declines and all the benefits that 180 00:08:19,560 --> 00:08:21,760 Speaker 6: are being normally being paid out at this time of year. 181 00:08:21,840 --> 00:08:26,120 Speaker 6: So again, just with the lack of data, perhaps you 182 00:08:26,120 --> 00:08:28,440 Speaker 6: would even suggest that we would should be getting another 183 00:08:28,480 --> 00:08:29,440 Speaker 6: fit cut in December. 184 00:08:30,400 --> 00:08:34,280 Speaker 5: And Jennifer, we know that in past shutdowns, GDP has 185 00:08:34,320 --> 00:08:36,920 Speaker 5: taken a hit, but then it bounces back. We gained 186 00:08:36,960 --> 00:08:40,000 Speaker 5: back nearly everything we lost once the government opens up. 187 00:08:40,000 --> 00:08:42,440 Speaker 5: Do you see that happening this time? Does this time 188 00:08:42,520 --> 00:08:43,280 Speaker 5: feel different? 189 00:08:43,480 --> 00:08:47,199 Speaker 6: And if so, why we are still looking for you know, 190 00:08:47,240 --> 00:08:50,640 Speaker 6: we haven't actually touched our fourth quarter growth forecast just yet, 191 00:08:50,640 --> 00:08:51,240 Speaker 6: but we are. 192 00:08:51,520 --> 00:08:53,559 Speaker 3: I think we're on the precipice of doing so. 193 00:08:53,679 --> 00:08:55,520 Speaker 6: But you know, I mean just given the fact that 194 00:08:55,559 --> 00:08:57,160 Speaker 6: you know, the workers will be paid. 195 00:08:57,160 --> 00:08:58,320 Speaker 3: At one point, by the way, there. 196 00:08:58,240 --> 00:09:00,640 Speaker 6: Was a question whether or not all of them will 197 00:09:00,679 --> 00:09:03,160 Speaker 6: be given their back wages, but it sounds like they 198 00:09:03,160 --> 00:09:05,720 Speaker 6: will be paid, so we will see that we should 199 00:09:05,720 --> 00:09:06,880 Speaker 6: be seeing that bounced back. 200 00:09:07,600 --> 00:09:09,200 Speaker 3: I don't think it's different this time. 201 00:09:09,520 --> 00:09:12,680 Speaker 6: If anything, you know, we're still seeing the benefit of 202 00:09:12,840 --> 00:09:16,880 Speaker 6: lower or easier monetary policy, which is helping support you know, 203 00:09:16,920 --> 00:09:19,880 Speaker 6: business investment, you know somewhat the housing market a little bit. 204 00:09:20,480 --> 00:09:22,040 Speaker 3: So we should see that Bouncad I don't think this 205 00:09:22,080 --> 00:09:23,480 Speaker 3: time is going to be that much different. 206 00:09:25,200 --> 00:09:28,880 Speaker 2: So, Jennifer, with the lack of economic data coming from 207 00:09:28,880 --> 00:09:31,240 Speaker 2: the US government, I think maybe investors might be paying 208 00:09:31,280 --> 00:09:34,280 Speaker 2: a little bit more attention to really the fine print 209 00:09:34,360 --> 00:09:36,960 Speaker 2: of corporate earnings we're seeing here. Is there anything you're 210 00:09:37,360 --> 00:09:39,960 Speaker 2: gleaning from the earnings we've had that's sixty five percent 211 00:09:39,960 --> 00:09:41,840 Speaker 2: of the S and P five hundred report so far. 212 00:09:42,040 --> 00:09:44,040 Speaker 2: Anything you're taking away from corporate earnings so far? 213 00:09:45,200 --> 00:09:46,240 Speaker 3: So further holding up? 214 00:09:46,840 --> 00:09:50,040 Speaker 6: You know, again this this is a little bit on 215 00:09:50,800 --> 00:09:52,360 Speaker 6: a little bit of a look in the rear view mirror, 216 00:09:52,520 --> 00:09:54,400 Speaker 6: how to say, But just the fact that the job 217 00:09:54,440 --> 00:09:56,240 Speaker 6: market is still holding up. 218 00:09:56,280 --> 00:10:00,360 Speaker 3: Obviously things have slowed meaningfully over the last. 219 00:10:00,280 --> 00:10:02,680 Speaker 6: A few months, you know, whatever data that we have seen, 220 00:10:03,040 --> 00:10:05,920 Speaker 6: but so far we haven't seen a big drop off 221 00:10:06,040 --> 00:10:10,439 Speaker 6: in jobs. Job those teams are still hovering around similar 222 00:10:10,480 --> 00:10:13,080 Speaker 6: areas at the state wide level. So that would help 223 00:10:13,080 --> 00:10:17,040 Speaker 6: consumer spending and that would continue to support earnings. But again, 224 00:10:17,120 --> 00:10:21,120 Speaker 6: of course, all this uncertainty going forward is another question. 225 00:10:21,280 --> 00:10:24,360 Speaker 6: So again we still look for, you know, steadish growth, 226 00:10:24,640 --> 00:10:27,160 Speaker 6: but slower growth in probably in the in the fourth quarter, 227 00:10:27,240 --> 00:10:31,560 Speaker 6: given the shutdown in the early months of January, but 228 00:10:31,720 --> 00:10:35,160 Speaker 6: again we're still seeing we're expecting growth to recover somewhat 229 00:10:35,240 --> 00:10:36,480 Speaker 6: in the at least. 230 00:10:36,320 --> 00:10:37,760 Speaker 3: The first quarter, first half of the year. 231 00:10:38,320 --> 00:10:41,400 Speaker 5: And if these were normal times, which what's normal nowadays, 232 00:10:41,440 --> 00:10:44,720 Speaker 5: But if these were normal, we would be getting an 233 00:10:44,800 --> 00:10:47,920 Speaker 5: unemployment report from the government this Friday, and it doesn't 234 00:10:47,960 --> 00:10:50,199 Speaker 5: look like we're going to unless the government reopens between 235 00:10:50,200 --> 00:10:52,120 Speaker 5: now and then. So what will you be looking at 236 00:10:52,120 --> 00:10:55,600 Speaker 5: specifically in terms of private data to sort of piece 237 00:10:55,679 --> 00:10:57,080 Speaker 5: together the jobs puzzle? 238 00:10:58,360 --> 00:11:00,640 Speaker 6: Still, you know, we've always been looking at the private 239 00:11:00,720 --> 00:11:04,280 Speaker 6: sector data, especially the isms, the Conference Board, the ADP, 240 00:11:04,880 --> 00:11:07,400 Speaker 6: because I've always said, you know, one can never ever 241 00:11:07,520 --> 00:11:10,120 Speaker 6: look at just one piece of economic data, even though 242 00:11:10,160 --> 00:11:12,680 Speaker 6: it's from the from the BLS as the bill and 243 00:11:12,800 --> 00:11:14,400 Speaker 6: end all, you should be looking at all the different 244 00:11:14,400 --> 00:11:16,600 Speaker 6: surveys of jobs, just to make sure that we're all 245 00:11:16,920 --> 00:11:19,240 Speaker 6: putting in the same direction, because if we're not, then 246 00:11:19,280 --> 00:11:22,199 Speaker 6: there is something wrong. So we continued to look at 247 00:11:22,240 --> 00:11:26,280 Speaker 6: the different levels of hiring and firing, of course, and 248 00:11:26,360 --> 00:11:29,160 Speaker 6: wages as well. But I thought it was kind of 249 00:11:29,160 --> 00:11:33,120 Speaker 6: interesting that the ISM surveys, at least the one that 250 00:11:33,120 --> 00:11:36,360 Speaker 6: we saw yesterday, was suggesting that, you know, that we're 251 00:11:36,400 --> 00:11:38,280 Speaker 6: sort of on hold in terms of the job front, 252 00:11:38,320 --> 00:11:40,680 Speaker 6: just given all US certainty still with trade and of 253 00:11:40,720 --> 00:11:46,360 Speaker 6: course this was I believe taken before last week, before 254 00:11:46,880 --> 00:11:50,640 Speaker 6: all the trade deals were secured by the US administration 255 00:11:50,720 --> 00:11:53,840 Speaker 6: and a number of the Asian countries, which is good news, 256 00:11:53,960 --> 00:11:56,440 Speaker 6: and of course the positive news coming from the US 257 00:11:56,440 --> 00:11:58,680 Speaker 6: and China. Having that, I believe it's a three hundred 258 00:11:58,679 --> 00:12:02,240 Speaker 6: and sixty to five day pause, so that is actually 259 00:12:02,360 --> 00:12:04,320 Speaker 6: a good thing. But at the same time, just given 260 00:12:04,360 --> 00:12:07,760 Speaker 6: this environment, you never know if that could actually be 261 00:12:08,080 --> 00:12:09,120 Speaker 6: sidelined a little bit. 262 00:12:09,960 --> 00:12:12,720 Speaker 2: Jennifer, you're based up there in Toronto, so thank you 263 00:12:12,800 --> 00:12:15,199 Speaker 2: for a great season from your Toronto Blue Jays. It's 264 00:12:15,200 --> 00:12:16,160 Speaker 2: a great world series. 265 00:12:16,200 --> 00:12:16,400 Speaker 3: Thank you. 266 00:12:16,440 --> 00:12:18,839 Speaker 2: Hopefully you guys are feeling okay about that it was 267 00:12:18,840 --> 00:12:21,280 Speaker 2: a great season. Well, how are you, guys, But you're 268 00:12:21,280 --> 00:12:24,439 Speaker 2: also Canada's our number two trading partner. What's the feeling 269 00:12:24,520 --> 00:12:28,200 Speaker 2: these days about the whole tariff situation here? It seems 270 00:12:28,200 --> 00:12:30,360 Speaker 2: to have kind of taken a little bit of a 271 00:12:30,360 --> 00:12:32,920 Speaker 2: back seat here. How are you guys thinking about it 272 00:12:33,000 --> 00:12:33,600 Speaker 2: day to day? 273 00:12:34,600 --> 00:12:38,559 Speaker 6: You know, it's still very very unsettling. I mean, given 274 00:12:38,600 --> 00:12:41,679 Speaker 6: the fact that you know, that's we are. The US 275 00:12:41,800 --> 00:12:43,839 Speaker 6: is our biggest trading partner. Seventy five percent of everything 276 00:12:43,840 --> 00:12:47,240 Speaker 6: that we export goes to the US. Every fifty five 277 00:12:47,240 --> 00:12:49,200 Speaker 6: percent of everything that we import comes from the US. 278 00:12:49,640 --> 00:12:52,920 Speaker 6: So when we have these trade breakdowns, these talk breakdowns, 279 00:12:52,960 --> 00:12:57,120 Speaker 6: especially recently, it's extremely unsettling. So you know, we are 280 00:12:57,520 --> 00:12:59,440 Speaker 6: trying to you know, I mean, I believe that there 281 00:12:59,480 --> 00:13:02,439 Speaker 6: is still there are still conversations being had between high 282 00:13:02,520 --> 00:13:04,480 Speaker 6: level officials on both sides of the border, which is 283 00:13:04,480 --> 00:13:07,719 Speaker 6: a good thing. And I will I will hope to 284 00:13:07,760 --> 00:13:10,760 Speaker 6: cross my figures that you know that is freezing out 285 00:13:10,800 --> 00:13:11,600 Speaker 6: of Canada right now. 286 00:13:12,200 --> 00:13:13,480 Speaker 3: We'll come to an end shortly. 287 00:13:13,960 --> 00:13:17,280 Speaker 6: Again encouraging that the US had all the trading deals 288 00:13:17,280 --> 00:13:19,839 Speaker 6: with everyone else out there in Asia, they've got a 289 00:13:19,880 --> 00:13:21,559 Speaker 6: little bit of a pause right now with Mexico. 290 00:13:21,679 --> 00:13:23,360 Speaker 3: So Canada is next up. 291 00:13:23,400 --> 00:13:25,199 Speaker 6: And you know, we've got the USMCA, which is a 292 00:13:25,240 --> 00:13:28,480 Speaker 6: huge deal for both America and Canada and Mexico. 293 00:13:28,559 --> 00:13:30,760 Speaker 3: And I don't think that can be lost in anyone 294 00:13:30,840 --> 00:13:32,000 Speaker 3: right now, all right. 295 00:13:32,080 --> 00:13:36,000 Speaker 5: Jennifer Lee, senior economists at FEMO Capital Markets, Thanks so 296 00:13:36,080 --> 00:13:38,160 Speaker 5: much for your insights, so we appreciate it. This morning. 297 00:13:38,440 --> 00:13:41,560 Speaker 2: Stay with us more from Bloomberg Surveillance coming up after this. 298 00:13:47,760 --> 00:13:51,360 Speaker 1: You're listening to the Bloomberg Surveillance Podcast. Catch us live 299 00:13:51,440 --> 00:13:54,600 Speaker 1: weekday afternoons from seven to ten am Eastern Listen on 300 00:13:54,679 --> 00:13:58,320 Speaker 1: Applecarplay and Android Auto with the Bloomberg Business app, or 301 00:13:58,480 --> 00:13:59,960 Speaker 1: watch us live on YouTube. 302 00:14:00,120 --> 00:14:03,800 Speaker 5: Let's bring in former Congressman Patrick McHenry of North Carolina, 303 00:14:03,840 --> 00:14:06,480 Speaker 5: also former chairman of the House Financial Services Committee and 304 00:14:06,800 --> 00:14:09,360 Speaker 5: a Bloomberg contributor. Always good to see you. Thanks so 305 00:14:09,440 --> 00:14:11,400 Speaker 5: much for joining us this morning. I guess I'll just 306 00:14:11,440 --> 00:14:14,240 Speaker 5: start with the passing of Dick Cheney. I mean your 307 00:14:14,320 --> 00:14:17,679 Speaker 5: time on the hill overlap some of his time on 308 00:14:17,720 --> 00:14:19,520 Speaker 5: the hill. What are your thoughts this morning as you 309 00:14:19,560 --> 00:14:22,000 Speaker 5: hear this news, Well, look for. 310 00:14:23,120 --> 00:14:24,560 Speaker 2: When I got elect to the Congress. 311 00:14:25,480 --> 00:14:29,520 Speaker 7: Vice President Dick Cheney is the conservatives conservative, a strong 312 00:14:29,560 --> 00:14:34,080 Speaker 7: foreign policy, strong economic policy at home. He embodied the 313 00:14:34,120 --> 00:14:38,080 Speaker 7: conservative principles of the Republican Party for more than a generation. 314 00:14:38,960 --> 00:14:42,720 Speaker 7: He served for presidents at the highest level, and effectively 315 00:14:42,720 --> 00:14:46,400 Speaker 7: as Vice president, was a senior staffer to the president. 316 00:14:46,760 --> 00:14:50,400 Speaker 7: Very different than what we've seen with recent vice presidents, 317 00:14:53,240 --> 00:14:57,680 Speaker 7: and so really a sad day for he and for 318 00:14:57,760 --> 00:15:03,120 Speaker 7: his family. And my heart goes out to them and 319 00:15:03,160 --> 00:15:05,800 Speaker 7: my prayers go to them on a day like today, 320 00:15:05,840 --> 00:15:09,200 Speaker 7: But a real loss for somebody who really embodied the 321 00:15:09,200 --> 00:15:13,480 Speaker 7: Republican Party and the conservative principles that I ran on, 322 00:15:14,120 --> 00:15:16,240 Speaker 7: you know, when I first got elected to Congress. 323 00:15:16,600 --> 00:15:19,080 Speaker 5: Any any stories that you can share, though, Patrick, any 324 00:15:19,160 --> 00:15:21,440 Speaker 5: sort of behind the scenes stories, maybe something we don't 325 00:15:21,480 --> 00:15:23,440 Speaker 5: know about the former vice president. 326 00:15:23,720 --> 00:15:28,320 Speaker 7: Well, it was constantly available to focus on the House site. 327 00:15:28,920 --> 00:15:29,600 Speaker 2: That's different. 328 00:15:29,680 --> 00:15:33,000 Speaker 7: Most most vice presidents orient the Senate because they're creatures 329 00:15:33,080 --> 00:15:35,680 Speaker 7: the Senate. The Vice presidency is a creature of the Senate. 330 00:15:35,960 --> 00:15:39,120 Speaker 7: But for somebody like me who was a new House member, 331 00:15:39,680 --> 00:15:44,160 Speaker 7: the care that he took with us in the some 332 00:15:44,280 --> 00:15:49,360 Speaker 7: called the lower branch of the legislature, the legislative body, 333 00:15:50,280 --> 00:15:51,360 Speaker 7: was really special. 334 00:15:52,000 --> 00:15:54,000 Speaker 2: And I remember after you left office, this is a 335 00:15:54,120 --> 00:15:55,240 Speaker 2: year after you left office. 336 00:15:55,240 --> 00:15:58,000 Speaker 7: I invited him over to dinner for a group of us, 337 00:15:58,000 --> 00:16:00,760 Speaker 7: a group of House Republicans when we were then the minority. 338 00:16:01,600 --> 00:16:05,600 Speaker 7: And we were all delayed getting there because votes had 339 00:16:06,000 --> 00:16:08,280 Speaker 7: had kept us. And we show up at the restaurant 340 00:16:08,480 --> 00:16:11,440 Speaker 7: and this is an evening and Dick Cheney has this 341 00:16:11,560 --> 00:16:15,600 Speaker 7: newspaper al reading at an empty table with one Secret 342 00:16:15,680 --> 00:16:17,880 Speaker 7: Service agent sitting out the door, and he looks out 343 00:16:17,880 --> 00:16:19,360 Speaker 7: as he's so all nice of you to join me, 344 00:16:20,480 --> 00:16:22,360 Speaker 7: you know, but he didn't have a he didn't have 345 00:16:22,360 --> 00:16:23,400 Speaker 7: an attitude about. 346 00:16:23,160 --> 00:16:23,960 Speaker 2: It, no presumption. 347 00:16:24,200 --> 00:16:26,400 Speaker 7: He knew what it was like to be a House 348 00:16:26,480 --> 00:16:31,800 Speaker 7: member and was always sensitive to us and taken care 349 00:16:31,840 --> 00:16:34,960 Speaker 7: of us, paying attention to us, which is really incredibly kind. 350 00:16:36,040 --> 00:16:36,280 Speaker 3: Pator. 351 00:16:36,360 --> 00:16:39,960 Speaker 2: We've got some important races for the governorship in New 352 00:16:40,080 --> 00:16:42,680 Speaker 2: Jersey and in Virginia. What are you looking for? What 353 00:16:42,760 --> 00:16:45,960 Speaker 2: do you think this these races may mean just maybe 354 00:16:45,960 --> 00:16:48,040 Speaker 2: more nationally. 355 00:16:48,840 --> 00:16:53,200 Speaker 7: Sure, I mean these things are tend to the Virginia 356 00:16:54,160 --> 00:16:59,200 Speaker 7: and New Jersey are democratic states in recent elections in 357 00:16:59,280 --> 00:17:03,360 Speaker 7: serious ways. We have a Republican governor in Virginia elected 358 00:17:03,880 --> 00:17:07,520 Speaker 7: in a Joe Biden first year. 359 00:17:08,840 --> 00:17:09,800 Speaker 2: Into the presidency. 360 00:17:10,760 --> 00:17:15,680 Speaker 7: We see going back to President Obama's time in office, 361 00:17:15,920 --> 00:17:19,000 Speaker 7: it became really about the margin and what that margin 362 00:17:19,200 --> 00:17:21,880 Speaker 7: meant for the president's mid term. 363 00:17:23,080 --> 00:17:25,120 Speaker 2: So I think we'll see a lot of parsing the numbers. 364 00:17:25,240 --> 00:17:27,520 Speaker 2: I think we clearly see today. 365 00:17:28,160 --> 00:17:31,719 Speaker 7: I see this by setting the tea leaves here that 366 00:17:32,760 --> 00:17:35,280 Speaker 7: you're likely to have a democratic governor in New Jersey 367 00:17:35,320 --> 00:17:39,400 Speaker 7: and continue that long tradition in New Jersey, and you're 368 00:17:39,520 --> 00:17:42,159 Speaker 7: likely to have a democratic governor in Virginia. But I 369 00:17:42,240 --> 00:17:44,919 Speaker 7: want to see what the demographics and the turnout say 370 00:17:45,320 --> 00:17:49,000 Speaker 7: about what the midterm will be, what the voter sentiment 371 00:17:49,119 --> 00:17:49,720 Speaker 7: is when they go. 372 00:17:49,720 --> 00:17:50,400 Speaker 2: To the polls. 373 00:17:50,960 --> 00:17:52,760 Speaker 7: I see a lot of this, and we see this 374 00:17:52,800 --> 00:17:57,119 Speaker 7: with the socialist running for mayor in New York, addressing 375 00:17:57,200 --> 00:18:00,560 Speaker 7: the affordability issue that is top of my to the voter, 376 00:18:00,680 --> 00:18:04,440 Speaker 7: still one year into the Trump presidency. So addressing those 377 00:18:04,520 --> 00:18:08,440 Speaker 7: key economic concerns of the last presidential election remain here 378 00:18:08,600 --> 00:18:11,480 Speaker 7: one year into the Trump presidency. We want to see 379 00:18:11,480 --> 00:18:13,880 Speaker 7: it more of what the voters say about that when 380 00:18:13,880 --> 00:18:15,199 Speaker 7: they show up at the polls today. 381 00:18:15,560 --> 00:18:17,400 Speaker 5: And Congressman, since we have you, we have to talk 382 00:18:17,400 --> 00:18:19,800 Speaker 5: about this shutdown, which is now tied for the longest 383 00:18:19,800 --> 00:18:22,560 Speaker 5: in US history. Some people are saying, look, this may 384 00:18:22,600 --> 00:18:25,840 Speaker 5: go on through Thanksgiving, which is still weeks away. What 385 00:18:25,880 --> 00:18:27,720 Speaker 5: are your thoughts, what's it going to take to reopen 386 00:18:27,720 --> 00:18:28,360 Speaker 5: this government? 387 00:18:29,000 --> 00:18:31,480 Speaker 7: Well, I think it's going to be reopened before Thanksgiving. 388 00:18:31,560 --> 00:18:35,080 Speaker 7: I think I think you will see enormous challenge with 389 00:18:35,480 --> 00:18:41,840 Speaker 7: transportation issues around Thanksgiving, which will really be a source 390 00:18:41,840 --> 00:18:46,280 Speaker 7: spot for my Democratic friends who are the ones filibustering 391 00:18:46,359 --> 00:18:48,840 Speaker 7: the reopening of government in the Senate. I think what 392 00:18:48,920 --> 00:18:53,399 Speaker 7: we now see we'll see post election these mid terms. Today, 393 00:18:54,840 --> 00:18:57,119 Speaker 7: I think we'll see the Democrats come back to the 394 00:18:57,160 --> 00:18:59,919 Speaker 7: table and negotiating a reopening strategy. A bit of a 395 00:19:00,080 --> 00:19:02,680 Speaker 7: thig leef on how they do that, but I think 396 00:19:02,720 --> 00:19:07,359 Speaker 7: you'll see a clean continued resolution, and then you'll see 397 00:19:07,560 --> 00:19:11,639 Speaker 7: the work of appropriations and possibly healthcare policy or an 398 00:19:11,640 --> 00:19:14,880 Speaker 7: agreement to vote on healthcare policy as a result of it. 399 00:19:14,960 --> 00:19:17,679 Speaker 7: I think we're in the final stages of the shutdown, 400 00:19:18,240 --> 00:19:20,960 Speaker 7: won't go on too much longer. I think we'll love 401 00:19:21,000 --> 00:19:24,280 Speaker 7: this result by I think the Senate will negotiate this 402 00:19:24,359 --> 00:19:27,159 Speaker 7: out before Thanksgiving. I think we'll see a reopening of 403 00:19:27,200 --> 00:19:30,639 Speaker 7: government at least through the holidays, and then fight it 404 00:19:30,640 --> 00:19:33,960 Speaker 7: out come January on appropriations and healthcare. 405 00:19:34,200 --> 00:19:36,520 Speaker 2: Coumerson to what extent are the races today in New 406 00:19:36,600 --> 00:19:40,520 Speaker 2: York City, New Jersey, Virginia kind of laying the foundation 407 00:19:40,600 --> 00:19:42,280 Speaker 2: for what may happen in the midterms. So how do 408 00:19:42,280 --> 00:19:42,879 Speaker 2: you think about that. 409 00:19:44,520 --> 00:19:48,640 Speaker 7: I think there's somewhat of a correlation between what the 410 00:19:48,680 --> 00:19:53,080 Speaker 7: margin on these elections but the demographic the demographics of 411 00:19:53,119 --> 00:19:56,119 Speaker 7: these states in New Jersey and Virginia are not really 412 00:19:56,160 --> 00:20:00,879 Speaker 7: predictive much less California predictive of midterm success for the 413 00:20:00,920 --> 00:20:02,440 Speaker 7: House or the Senate map. 414 00:20:03,000 --> 00:20:04,560 Speaker 2: But we want to see what the voters are saying 415 00:20:04,600 --> 00:20:05,280 Speaker 2: in the sentiment. 416 00:20:05,600 --> 00:20:08,879 Speaker 7: I think what you also see is President Trump will 417 00:20:08,920 --> 00:20:15,840 Speaker 7: be elevating potentially Mayor Mandami and in highlighting him as 418 00:20:15,880 --> 00:20:18,840 Speaker 7: a force of is a force and a show of 419 00:20:18,880 --> 00:20:22,080 Speaker 7: what the opposition looks like, the Democratic Party being a 420 00:20:22,119 --> 00:20:26,199 Speaker 7: socialist party. You hear a lot more of that coming 421 00:20:26,280 --> 00:20:29,080 Speaker 7: out of today from the White House. 422 00:20:29,760 --> 00:20:32,399 Speaker 5: Thomasman, Patrick McHenry. Were so glad to have you on 423 00:20:32,440 --> 00:20:35,600 Speaker 5: such a very busy political day here on Bloomberg Surveillance. 424 00:20:35,640 --> 00:20:36,679 Speaker 2: Thanks so much for being with us. 425 00:20:36,680 --> 00:20:37,640 Speaker 5: We appreciate your time. 426 00:20:37,920 --> 00:20:41,080 Speaker 2: Stay with us. More from Bloomberg Surveillance coming up after this. 427 00:20:47,280 --> 00:20:50,879 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live 428 00:20:50,920 --> 00:20:54,440 Speaker 1: weekday afternoons from seven to ten am Eastern Listen on Apple, 429 00:20:54,480 --> 00:20:57,840 Speaker 1: Karplay and Android Otto with the Bloomberg Business app, or 430 00:20:58,000 --> 00:20:59,159 Speaker 1: watch us live on. 431 00:20:59,040 --> 00:21:01,760 Speaker 2: YouTube, Tale and newspapers Leation. What do you have for 432 00:21:01,840 --> 00:21:02,200 Speaker 2: us today? 433 00:21:02,359 --> 00:21:06,400 Speaker 8: Okay, so we know there's negotiations right between YouTube and Disney, 434 00:21:07,080 --> 00:21:09,639 Speaker 8: and the war of words is ramping up. 435 00:21:09,680 --> 00:21:12,359 Speaker 2: Okay, so here it goes. So it started with Walt Disney. 436 00:21:12,359 --> 00:21:14,560 Speaker 8: They were asking YouTube in a statement to bring back 437 00:21:14,640 --> 00:21:17,560 Speaker 8: ABC because it's election day, so they wanted the service 438 00:21:17,600 --> 00:21:20,760 Speaker 8: to be brought back. Disney said, we believe in putting 439 00:21:20,760 --> 00:21:23,399 Speaker 8: the public interests first. Hope that YouTube will take this 440 00:21:23,520 --> 00:21:26,040 Speaker 8: small step for customers while we continue to work toward 441 00:21:26,040 --> 00:21:29,040 Speaker 8: a fair agreement. So now YouTube came back with a 442 00:21:29,080 --> 00:21:32,159 Speaker 8: response and they put on their blog post. Unfortunately, the 443 00:21:32,200 --> 00:21:35,560 Speaker 8: proposal would permit us to return Disney's ABC stations only 444 00:21:35,600 --> 00:21:39,199 Speaker 8: for a day, and it would cause customer confusion. And 445 00:21:39,240 --> 00:21:42,600 Speaker 8: they even dug a little bit deeper YouTube saying that 446 00:21:42,680 --> 00:21:45,119 Speaker 8: in fact, in the last two election days, the vast 447 00:21:45,119 --> 00:21:50,480 Speaker 8: majority of YouTube TV subscribers chose not to watch. Ah yeah, wow, 448 00:21:50,520 --> 00:21:52,840 Speaker 8: it's getting a little hard. But they're back and forth. 449 00:21:52,880 --> 00:21:54,800 Speaker 8: I mean, is this going to happen or are they 450 00:21:54,960 --> 00:21:56,000 Speaker 8: is it going to be brought back? 451 00:21:56,080 --> 00:21:56,600 Speaker 2: Who knows. 452 00:21:57,040 --> 00:21:58,880 Speaker 8: But it's just this back and forth between the two 453 00:21:59,080 --> 00:21:59,800 Speaker 8: YouTube and. 454 00:21:59,760 --> 00:22:02,480 Speaker 2: This, right, we've seen this before with the cable companies 455 00:22:02,480 --> 00:22:06,080 Speaker 2: and then networks, So it's the same Yeah, that's what 456 00:22:06,160 --> 00:22:08,240 Speaker 2: happens exactly, and who pays the price. 457 00:22:08,240 --> 00:22:10,640 Speaker 8: You can say, so, you know, because they just want 458 00:22:10,640 --> 00:22:13,240 Speaker 8: to watch it. Okay, So this is kind of an 459 00:22:13,240 --> 00:22:15,479 Speaker 8: interesting story. This one's from the Wall Street Journal, So 460 00:22:15,520 --> 00:22:17,760 Speaker 8: it's kind of a look into what happens when small 461 00:22:17,760 --> 00:22:21,560 Speaker 8: town America becomes data center USA. We've been talking about 462 00:22:21,600 --> 00:22:25,000 Speaker 8: all these data centers coming to these towns. 463 00:22:24,520 --> 00:22:27,120 Speaker 2: That maybe you've ever heard of. So the Wall Street 464 00:22:27,160 --> 00:22:28,679 Speaker 2: Journal shows the two sides to it. 465 00:22:28,760 --> 00:22:31,400 Speaker 8: Right. It goes to this small town in northeast Oregon 466 00:22:31,480 --> 00:22:33,920 Speaker 8: that now have a big fleet. 467 00:22:33,720 --> 00:22:34,960 Speaker 2: Of Amazon data centers. 468 00:22:35,160 --> 00:22:38,160 Speaker 8: So you have Amazon, right, They're pumping jobs, people, money 469 00:22:38,200 --> 00:22:42,439 Speaker 8: into the community of roughly eight thousand construction workers. You 470 00:22:42,440 --> 00:22:46,480 Speaker 8: have builders building new neighborhoods in the area, businesses surging 471 00:22:46,560 --> 00:22:49,480 Speaker 8: for suppliers of concrete fencing. But then on the other side, 472 00:22:49,520 --> 00:22:52,080 Speaker 8: you have the residents who're saying, well, what happens when 473 00:22:52,320 --> 00:22:54,919 Speaker 8: the building stops? You know, where do all the people go? 474 00:22:55,160 --> 00:22:57,200 Speaker 8: We're coming to our restaurants and coming to. 475 00:22:57,160 --> 00:22:57,879 Speaker 2: All these things. 476 00:22:58,440 --> 00:23:01,600 Speaker 8: They say, the cost of housing and childcare arising because 477 00:23:01,640 --> 00:23:04,040 Speaker 8: of it, and then the demand for services and infrastructure. 478 00:23:04,040 --> 00:23:05,520 Speaker 2: It's left the governments kind. 479 00:23:05,400 --> 00:23:10,880 Speaker 5: Of resources in that area, right, or the electricity rates 480 00:23:10,880 --> 00:23:11,640 Speaker 5: in those areas. 481 00:23:11,800 --> 00:23:14,359 Speaker 8: Yeah, so it's it's like this two sided issue, and. 482 00:23:14,800 --> 00:23:16,840 Speaker 2: They really need to run a data center. I don't know, 483 00:23:17,280 --> 00:23:19,200 Speaker 2: not that many, that's the whole reason. Yeah. 484 00:23:19,240 --> 00:23:22,240 Speaker 8: So once the builders and all the construction leaves, there's 485 00:23:22,280 --> 00:23:23,679 Speaker 8: nothing left but a big building. 486 00:23:24,080 --> 00:23:26,679 Speaker 2: Okay, Well they're building these data centers where the energy 487 00:23:26,800 --> 00:23:28,439 Speaker 2: is apparently because you need that. 488 00:23:28,800 --> 00:23:29,000 Speaker 1: Yeah. 489 00:23:29,040 --> 00:23:31,639 Speaker 8: So that's okay, I get it now, all right, okay, 490 00:23:31,640 --> 00:23:34,639 Speaker 8: and this last one, Okay, this one's interesting. So Netflix 491 00:23:34,760 --> 00:23:38,720 Speaker 8: looking to compete with YouTube source telling Blueberg there and 492 00:23:38,760 --> 00:23:43,399 Speaker 8: talks to license video podcasts or that are distributed by iHeartMedia. 493 00:23:43,680 --> 00:23:45,680 Speaker 2: So now you have iHeartMedia. 494 00:23:45,000 --> 00:23:45,520 Speaker 8: Shares like. 495 00:23:47,480 --> 00:23:50,720 Speaker 2: Clear Channel, Clear Channel, Yes, correct? Did that was you? 496 00:23:51,080 --> 00:23:54,560 Speaker 2: And you're going You're going way back right Lowry Maze 497 00:23:54,640 --> 00:23:58,560 Speaker 2: Randam Mays Mark Maze. See I used to work for them. 498 00:23:58,600 --> 00:23:59,120 Speaker 2: There you go. 499 00:24:00,080 --> 00:24:03,000 Speaker 8: But they have these popular programs, right the Breakfast Club podcast, 500 00:24:03,119 --> 00:24:07,320 Speaker 8: Jay Shetty podcast. So if Netflix gets the exclusivity for them, 501 00:24:07,680 --> 00:24:10,440 Speaker 8: full episodes are not going to be uploaded to YouTube anymore. 502 00:24:10,520 --> 00:24:13,400 Speaker 8: And so that's where the competition is. I mean, Netflix 503 00:24:13,440 --> 00:24:16,440 Speaker 8: and Spotify did a similar thing last month. So now 504 00:24:16,560 --> 00:24:20,240 Speaker 8: Netflix reportedly going for iHeartMedia and trying to work this 505 00:24:20,400 --> 00:24:21,200 Speaker 8: same thing with them. 506 00:24:21,440 --> 00:24:23,960 Speaker 5: Where can Netflix be doing that's really They're putting a 507 00:24:23,960 --> 00:24:25,879 Speaker 5: big in for Warner Brothers Discovery. 508 00:24:26,119 --> 00:24:29,280 Speaker 2: That's not gonna happen. Oh Netflix, Netflix, yess Netflix, They 509 00:24:29,280 --> 00:24:31,919 Speaker 2: can do whatever they want. Yes, such they can their 510 00:24:31,960 --> 00:24:33,159 Speaker 2: stock price yet and that's the thing. 511 00:24:33,240 --> 00:24:36,440 Speaker 8: So now is this video podcast realm like a new 512 00:24:36,960 --> 00:24:38,680 Speaker 8: source for them to compete with YouTube? 513 00:24:38,720 --> 00:24:40,840 Speaker 5: So they certainly see it as a money maker. Yeah, 514 00:24:40,840 --> 00:24:42,360 Speaker 5: they wouldn't be doing it, soa very. 515 00:24:42,280 --> 00:24:44,960 Speaker 2: Good all right, Lisa Miteo with the newspapers, We appreciate that. 516 00:24:45,080 --> 00:24:46,000 Speaker 2: Always a highlight. 517 00:24:46,920 --> 00:24:51,760 Speaker 1: This is the Bloomberg Surveillance Podcast, available on Apple, Spotify, 518 00:24:51,880 --> 00:24:56,160 Speaker 1: and anywhere else you get your podcasts. Listen live each weekday, 519 00:24:56,320 --> 00:24:59,560 Speaker 1: seven to ten am Easter and on Bloomberg dot Com, 520 00:24:59,640 --> 00:25:03,480 Speaker 1: the Heart Radio app, tune In, and the Bloomberg Business app. 521 00:25:03,800 --> 00:25:06,880 Speaker 1: You can also watch us live every weekday on YouTube 522 00:25:07,200 --> 00:25:09,200 Speaker 1: and always on the Bloomberg terminal