1 00:00:02,560 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:08,880 --> 00:00:09,760 Speaker 2: Hi, Max and Sacy. 3 00:00:10,240 --> 00:00:11,080 Speaker 3: Hey, Jasmine. 4 00:00:12,600 --> 00:00:15,960 Speaker 4: Hi, I'm Dathman, producer on the show, and before we 5 00:00:16,000 --> 00:00:18,520 Speaker 4: start the segment, I thought I would like present you 6 00:00:18,560 --> 00:00:20,680 Speaker 4: both with something to get you a little bit more 7 00:00:20,720 --> 00:00:25,160 Speaker 4: in the spirit of the Nicks versus the Spurs. 8 00:00:25,320 --> 00:00:30,840 Speaker 3: Okay, all right, so I have here. Oh my god, Jasmine, 9 00:00:30,960 --> 00:00:32,120 Speaker 3: did you for you both? 10 00:00:32,320 --> 00:00:36,280 Speaker 5: Did you spend Mike Bloomberg's money on Nick shirts? 11 00:00:37,240 --> 00:00:38,320 Speaker 6: So I have a T shirt for you. 12 00:00:38,479 --> 00:00:38,800 Speaker 4: Max? 13 00:00:39,520 --> 00:00:42,400 Speaker 7: Oh nice, way, I want to I want to see 14 00:00:42,440 --> 00:00:44,199 Speaker 7: it says we got. 15 00:00:44,000 --> 00:00:45,240 Speaker 3: To read the conference champion. 16 00:00:45,560 --> 00:00:46,680 Speaker 8: Nice and I have one for you. 17 00:00:49,240 --> 00:00:54,280 Speaker 5: I truly hope that this is licensed merchandise, of course. 18 00:00:54,080 --> 00:00:58,080 Speaker 4: That this is straight off of Lexington Avenue right here. 19 00:00:58,280 --> 00:01:00,200 Speaker 3: I love it. All right. 20 00:01:01,400 --> 00:01:07,039 Speaker 5: We are objective journalists here at everybody's business, so I 21 00:01:07,080 --> 00:01:08,280 Speaker 5: hope we don't tell anybody. 22 00:01:08,319 --> 00:01:09,640 Speaker 2: But we're also New Yorkers. 23 00:01:10,240 --> 00:01:10,800 Speaker 6: Yeah, that's true. 24 00:01:11,480 --> 00:01:20,919 Speaker 2: We're also New Yorkers. Max. This is an epic week 25 00:01:21,080 --> 00:01:21,640 Speaker 2: in New York. 26 00:01:21,720 --> 00:01:25,200 Speaker 7: From Madison Square Garden to Wall Street, things are just 27 00:01:25,319 --> 00:01:26,679 Speaker 7: it just doesn't get bigger than this. 28 00:01:26,760 --> 00:01:27,240 Speaker 2: It's epic. 29 00:01:27,400 --> 00:01:27,600 Speaker 3: Yeah. 30 00:01:27,640 --> 00:01:30,520 Speaker 5: Everywhere I look all over the city, everyone is out 31 00:01:30,560 --> 00:01:33,480 Speaker 5: there supporting their favorite team, and of course that is 32 00:01:33,520 --> 00:01:36,960 Speaker 5: the IPO of SpaceX, the biggest. 33 00:01:37,120 --> 00:01:39,000 Speaker 7: You just can't ride the subway without people like, are 34 00:01:39,000 --> 00:01:40,800 Speaker 7: you getting in on the Anthropic deal? 35 00:01:41,080 --> 00:01:44,440 Speaker 5: Like, yeah, you mentioned also Anthropic Open AI. It is 36 00:01:44,480 --> 00:01:46,520 Speaker 5: a big week for public markets. 37 00:01:46,680 --> 00:01:48,840 Speaker 2: It is a big week for public markets. But Max, 38 00:01:48,880 --> 00:01:51,360 Speaker 2: that is not the shirt that you are wearing right now. 39 00:01:51,760 --> 00:01:55,800 Speaker 5: No, the NBA Finals are going on right now, New York. Next, 40 00:01:55,800 --> 00:01:59,800 Speaker 5: the team of Destiny Stacy Destiny are on the Customer 41 00:02:00,160 --> 00:02:03,000 Speaker 5: television ratings are great, the World Cup is here. We're 42 00:02:03,040 --> 00:02:06,240 Speaker 5: gonna be talking with Randall Williams all about this kind 43 00:02:06,240 --> 00:02:09,200 Speaker 5: of amazing moment in sports that is happening right now. 44 00:02:09,360 --> 00:02:11,280 Speaker 2: Yes, and we're also talking about the great Katie Greidfeld 45 00:02:11,320 --> 00:02:15,480 Speaker 2: about all of these IPOs and what that means for 46 00:02:15,560 --> 00:02:19,280 Speaker 2: the markets and for regular people. This is everybody's business. 47 00:02:19,320 --> 00:02:24,760 Speaker 5: I'm Stacy Bannocksmith, I'm Max Chafkin. Let's go IPOs and 48 00:02:24,800 --> 00:02:25,119 Speaker 5: the next. 49 00:02:25,160 --> 00:02:33,200 Speaker 7: I guess Max, I have not seen that much of 50 00:02:33,200 --> 00:02:36,200 Speaker 7: you recently because you have had your head down. You've 51 00:02:36,200 --> 00:02:39,799 Speaker 7: been writing this big like mango article on SpaceX. 52 00:02:40,480 --> 00:02:43,560 Speaker 5: I don't know Mango, but yes, statay technical I have 53 00:02:43,880 --> 00:02:47,919 Speaker 5: been thinking about writing, about talking about reading, talking to 54 00:02:47,960 --> 00:02:52,119 Speaker 5: people related to the SpaceX ipo, which is the biggest 55 00:02:52,120 --> 00:02:53,000 Speaker 5: ipo ever. 56 00:02:53,360 --> 00:02:55,560 Speaker 7: I know, while I feel like the summer is supposed 57 00:02:55,600 --> 00:02:57,799 Speaker 7: to be kind of a sleepy time for the markets, 58 00:02:57,840 --> 00:03:00,520 Speaker 7: everyone's kind of relaxing and going on vacation, but oh 59 00:03:00,560 --> 00:03:03,320 Speaker 7: my gosh, like this month we've got not only SpaceX 60 00:03:03,320 --> 00:03:06,320 Speaker 7: but also Anthropic Open AI. They're all going public soon. 61 00:03:07,000 --> 00:03:08,639 Speaker 7: And like you said, these are not just run of 62 00:03:08,639 --> 00:03:12,239 Speaker 7: the mill IPOs. These are like the biggest of all time. 63 00:03:12,120 --> 00:03:14,560 Speaker 3: SpaceX aiming for one point eight trillion. 64 00:03:14,720 --> 00:03:17,200 Speaker 2: They're like GDPs, this is not enough. 65 00:03:17,600 --> 00:03:19,960 Speaker 5: I just you haven't even read I assume you haven't 66 00:03:19,960 --> 00:03:22,680 Speaker 5: looked at the SPACEXS one. But we will have to 67 00:03:22,680 --> 00:03:26,080 Speaker 5: talk about GDP scale once we bring in Katie Greifeld, 68 00:03:26,320 --> 00:03:27,960 Speaker 5: who is here with us. 69 00:03:28,000 --> 00:03:29,680 Speaker 3: Now, Hey Katie, Hey you guys. 70 00:03:30,000 --> 00:03:32,880 Speaker 5: Katie is the co host of the Clothes on Bloomberg TV. 71 00:03:33,040 --> 00:03:36,040 Speaker 5: Check it out the podcast Money Stuff. Subscribe a great 72 00:03:36,080 --> 00:03:39,200 Speaker 5: newsletter ETFIQ, which is very topical for this conversation. 73 00:03:39,240 --> 00:03:42,160 Speaker 3: You subscribe to that, Katie. We are so happy you're here. 74 00:03:42,320 --> 00:03:46,160 Speaker 1: I'm thrilled to be here. On everybody's business, all right. 75 00:03:46,040 --> 00:03:50,000 Speaker 5: So, Katie, you live in the world of the markets 76 00:03:50,040 --> 00:03:53,400 Speaker 5: more than Sacy and I do. What is your sort 77 00:03:53,400 --> 00:03:57,480 Speaker 5: of feeling about this SPACEXXIPO. We're recording this two days, 78 00:03:57,520 --> 00:04:03,440 Speaker 5: I guess before it begins trading on Friday, huge valuation. 79 00:04:04,000 --> 00:04:05,880 Speaker 3: I don't know what are you seeing, what are you hearing? 80 00:04:06,040 --> 00:04:06,800 Speaker 2: I'm psyched. 81 00:04:06,880 --> 00:04:09,800 Speaker 1: I have to say, I live in the second to 82 00:04:09,840 --> 00:04:12,560 Speaker 1: second of markets. So it's going to be fascinating to 83 00:04:12,600 --> 00:04:16,640 Speaker 1: see this company actually come public because it's already especially 84 00:04:16,640 --> 00:04:18,400 Speaker 1: I mean the Big three that we're talking about, there's 85 00:04:18,440 --> 00:04:20,760 Speaker 1: so much a part of the conversation. And even though 86 00:04:20,800 --> 00:04:24,279 Speaker 1: they're private companies, they have so many tentacles, especially open 87 00:04:24,320 --> 00:04:27,960 Speaker 1: an AI and Anthropic, into publicly listed companies. You think 88 00:04:27,960 --> 00:04:30,920 Speaker 1: about what's going on with Nvidia and the Magnificent Seven. 89 00:04:31,400 --> 00:04:34,359 Speaker 1: They've already made such a splash in public markets. To 90 00:04:34,920 --> 00:04:39,320 Speaker 1: finally have them come and IPO feels like such a 91 00:04:39,360 --> 00:04:42,960 Speaker 1: moment in time. So how do I feel about it? 92 00:04:43,000 --> 00:04:46,080 Speaker 1: I'm happy that at least for SpaceX, we're finally here. 93 00:04:46,520 --> 00:04:50,400 Speaker 1: At least for Anthropic and open AI, we've seen some 94 00:04:50,520 --> 00:04:53,880 Speaker 1: initial s one so we can finally start to like 95 00:04:54,360 --> 00:04:57,000 Speaker 1: color in the lines of these private companies that we 96 00:04:57,080 --> 00:05:00,920 Speaker 1: know a lot about, but to get regular updates from 97 00:05:00,960 --> 00:05:03,880 Speaker 1: them and have them actually be publicly listed companies. It's 98 00:05:03,920 --> 00:05:06,200 Speaker 1: just going to help, I think, fit together a lot 99 00:05:06,240 --> 00:05:06,839 Speaker 1: of the pieces. 100 00:05:07,560 --> 00:05:09,640 Speaker 7: Well, I would love to talk about these numbers a 101 00:05:09,720 --> 00:05:13,840 Speaker 7: little bit, because the numbers are huge, the evaluations are huge, 102 00:05:14,480 --> 00:05:16,960 Speaker 7: and the amount of money these companies are earning is 103 00:05:17,000 --> 00:05:21,839 Speaker 7: not necessarily in the ballpark of how these companies are valued. 104 00:05:22,000 --> 00:05:23,880 Speaker 7: I mean, is that just like an old fashioned way 105 00:05:23,960 --> 00:05:27,160 Speaker 7: of looking at IPOs and companies or how do you 106 00:05:27,560 --> 00:05:33,800 Speaker 7: reconcile the amount of money that these companies are like 107 00:05:33,920 --> 00:05:37,000 Speaker 7: trying to list for and how much they actually seem 108 00:05:37,080 --> 00:05:38,520 Speaker 7: to be poised to make. 109 00:05:38,920 --> 00:05:41,559 Speaker 1: I don't think it's old fashioned, but it does seem 110 00:05:41,680 --> 00:05:44,600 Speaker 1: a little past SA in the age of AI, you know, okay, 111 00:05:45,320 --> 00:05:48,599 Speaker 1: because you're really you're selling a vision like where we're. 112 00:05:48,440 --> 00:05:49,599 Speaker 2: Going we don't need roads? 113 00:05:49,839 --> 00:05:54,440 Speaker 1: Well kind of yeah, like you're selling you're selling a 114 00:05:54,520 --> 00:05:56,760 Speaker 1: vision of the future. We're going to put data centers 115 00:05:57,200 --> 00:06:00,520 Speaker 1: in space, et cetera, et cetera. AI is going to 116 00:06:00,600 --> 00:06:03,839 Speaker 1: reshape society and this is going to be a central 117 00:06:03,920 --> 00:06:06,520 Speaker 1: part to how we live our lives. And that's if 118 00:06:06,560 --> 00:06:11,359 Speaker 1: you're if you're buying into any AI company going public 119 00:06:11,440 --> 00:06:14,520 Speaker 1: on day one, but especially you know these three and SpaceX, 120 00:06:14,560 --> 00:06:17,120 Speaker 1: Elon Musk would argue is an AI company, not a 121 00:06:17,200 --> 00:06:20,520 Speaker 1: rocket company. You're sort of buying into that vision. I 122 00:06:20,560 --> 00:06:23,480 Speaker 1: will say with SpaceX, the numbers that we're talking about 123 00:06:23,520 --> 00:06:26,400 Speaker 1: in max, this is something that you're well acquainted with. 124 00:06:26,440 --> 00:06:29,560 Speaker 1: The Elon Musk premium. The facts insane, the fact that 125 00:06:29,600 --> 00:06:32,840 Speaker 1: Elon Musk is attached to this company. When you compare it, 126 00:06:33,279 --> 00:06:36,440 Speaker 1: when you compare the valuations with the fundamentals, but then 127 00:06:36,480 --> 00:06:38,520 Speaker 1: you add in the Elon Musk factor, it makes it 128 00:06:38,560 --> 00:06:39,720 Speaker 1: make a little bit more sense. 129 00:06:39,800 --> 00:06:42,240 Speaker 5: It's funny because, like what you're saying sounds like kind 130 00:06:42,279 --> 00:06:43,800 Speaker 5: of a made up thing. But when you talk to 131 00:06:43,880 --> 00:06:46,800 Speaker 5: like people who analyze, like analysts, they kind of put 132 00:06:46,839 --> 00:06:49,000 Speaker 5: in these terms. They're like, well, you've got the rocket. 133 00:06:49,040 --> 00:06:51,160 Speaker 5: You've got the rocket part of the business that's pretty good. 134 00:06:51,279 --> 00:06:53,600 Speaker 5: You've got Starlink, which is growing, but who knows how 135 00:06:53,640 --> 00:06:55,320 Speaker 5: fast is going to grow. You got the AI thing 136 00:06:55,360 --> 00:06:57,640 Speaker 5: which doesn't really exist yet. I mean, there's a plan 137 00:06:57,760 --> 00:07:00,880 Speaker 5: to build data centers in space. There's which is a 138 00:07:01,040 --> 00:07:04,359 Speaker 5: kind of second tier large language model. It's sort of 139 00:07:04,520 --> 00:07:08,159 Speaker 5: noteworthy because it's more risque than Open Ai or Claude. 140 00:07:08,279 --> 00:07:09,920 Speaker 5: It's the one you want to have sex with. I 141 00:07:09,920 --> 00:07:13,880 Speaker 5: guess if you have to, you gotta choose one. But 142 00:07:14,040 --> 00:07:16,840 Speaker 5: then there's Elon Musk, and that is the thing that 143 00:07:16,920 --> 00:07:20,840 Speaker 5: takes this company, which is really it's like a smallish 144 00:07:21,040 --> 00:07:23,640 Speaker 5: tech company at least by the scale of these megacaps 145 00:07:23,880 --> 00:07:27,160 Speaker 5: eighteen billion dollars in revenue. I think Meta had something 146 00:07:27,240 --> 00:07:30,560 Speaker 5: like two hundred billion dollars in revenue, lost over four 147 00:07:30,560 --> 00:07:33,880 Speaker 5: billion dollars last year. The losses are growing. And you 148 00:07:34,520 --> 00:07:36,720 Speaker 5: take those kind of little pieces that I mentioned, and 149 00:07:36,760 --> 00:07:39,680 Speaker 5: you swirl in the Elon Musk premium that you're talking about, 150 00:07:39,960 --> 00:07:41,680 Speaker 5: and all of a sudden, you've got a company that's 151 00:07:41,720 --> 00:07:42,800 Speaker 5: one point eight trillion dollars. 152 00:07:42,920 --> 00:07:44,720 Speaker 7: Can I ask a question that's going to sound snarky, 153 00:07:44,720 --> 00:07:46,720 Speaker 7: but I actually don't mean it to sound snarky, which 154 00:07:46,760 --> 00:07:50,480 Speaker 7: is why is there an Elon Musk premium? He feels 155 00:07:50,520 --> 00:07:53,600 Speaker 7: like you could look at him as potentially a little 156 00:07:53,600 --> 00:07:54,600 Speaker 7: bit of a liability. 157 00:07:54,880 --> 00:07:59,600 Speaker 1: I mean, to his credit, he helped pioneer the category 158 00:07:59,600 --> 00:08:03,200 Speaker 1: of elect for vehicles in the US. I mean Tesla's 159 00:08:03,440 --> 00:08:06,640 Speaker 1: if you take a drive They're ubiquitous. You see them everywhere. 160 00:08:07,320 --> 00:08:10,400 Speaker 1: SpaceX also to Elon Musk's credit. I mean, this is 161 00:08:10,400 --> 00:08:12,600 Speaker 1: a company that's been around for decades. It's not like 162 00:08:12,640 --> 00:08:16,160 Speaker 1: your classic startup. I think Anthropic is something close to 163 00:08:16,200 --> 00:08:20,120 Speaker 1: like five years old. But Tesla or rather SpaceX, is 164 00:08:20,160 --> 00:08:23,280 Speaker 1: a mature company at this point, and they've you know, 165 00:08:23,400 --> 00:08:27,240 Speaker 1: successfully delivered on a lot of their targets. And you know, 166 00:08:27,480 --> 00:08:30,280 Speaker 1: you think about the SpaceX IPO thirty percent, it's going 167 00:08:30,320 --> 00:08:34,920 Speaker 1: to be allocated to retail investors. Retail investors who love 168 00:08:35,000 --> 00:08:38,680 Speaker 1: Elon Musk. Presumably that's why they're buying it. I think 169 00:08:38,720 --> 00:08:43,040 Speaker 1: you can't discount the fact that he is a sales 170 00:08:43,400 --> 00:08:44,600 Speaker 1: a salesman here. 171 00:08:45,200 --> 00:08:47,360 Speaker 7: Well, that brings me to another question that I had 172 00:08:47,360 --> 00:08:49,280 Speaker 7: about this moment. So this is like probably one of 173 00:08:49,320 --> 00:08:52,920 Speaker 7: the most action packed months the markets have ever had, 174 00:08:53,000 --> 00:08:53,920 Speaker 7: like in their history. 175 00:08:54,000 --> 00:08:58,400 Speaker 2: I'm tired, yes, But why are the markets falling? 176 00:08:58,679 --> 00:09:01,400 Speaker 1: Well, I hope I don't don't look too ghoulish. But again, 177 00:09:01,679 --> 00:09:05,760 Speaker 1: I cover markets second to second and for two hours 178 00:09:05,800 --> 00:09:10,200 Speaker 1: a day. You know, well, I'm so interested to see 179 00:09:10,200 --> 00:09:13,320 Speaker 1: if this current slump and it really started, you know, 180 00:09:13,440 --> 00:09:15,640 Speaker 1: in the wake of Broadcom earnings last week, you know, 181 00:09:15,720 --> 00:09:19,000 Speaker 1: this whole AI complex and the chip makers, in particular. 182 00:09:19,360 --> 00:09:21,120 Speaker 3: Massive chip maker, Yes, exactly. 183 00:09:21,160 --> 00:09:23,080 Speaker 1: The chip makers have really been in the hurt locker 184 00:09:23,080 --> 00:09:27,800 Speaker 1: and leading this. They gave a disappointing forecast. And again 185 00:09:27,840 --> 00:09:29,959 Speaker 1: when we're talking about hopes and dreams and like the 186 00:09:30,040 --> 00:09:32,320 Speaker 1: vision for the future and the idea that you know, 187 00:09:32,400 --> 00:09:35,240 Speaker 1: this AI reality that we're going to enter into is 188 00:09:35,280 --> 00:09:38,000 Speaker 1: going to translate into real profits for these companies. If 189 00:09:38,040 --> 00:09:43,679 Speaker 1: your forecast doesn't align with that vision, obviously, investors get nervous. 190 00:09:43,760 --> 00:09:48,040 Speaker 1: So it creates a really interesting stage on which SpaceX 191 00:09:48,120 --> 00:09:50,480 Speaker 1: is going to go public in a few days time. 192 00:09:50,640 --> 00:09:53,080 Speaker 2: So we'll we'll see, you know. 193 00:09:53,400 --> 00:09:55,120 Speaker 1: I mean, there's so many unknowns here, but I will 194 00:09:55,160 --> 00:09:59,960 Speaker 1: say that sentiment is definitely a little skittish at this moment, 195 00:10:00,280 --> 00:10:02,959 Speaker 1: especially around the AI trade, and it's going to be 196 00:10:03,000 --> 00:10:06,080 Speaker 1: interesting to see how SpaceX. 197 00:10:05,480 --> 00:10:06,800 Speaker 2: Lands in the midst of that. 198 00:10:07,280 --> 00:10:09,120 Speaker 5: A major thing that lots of people are talking about. 199 00:10:09,120 --> 00:10:11,520 Speaker 5: Your co host Matt Levine has been writing about this 200 00:10:11,559 --> 00:10:15,160 Speaker 5: in his newsletter, is this question of the index funds. 201 00:10:15,360 --> 00:10:18,559 Speaker 5: So quick primer, I guess for people who don't know 202 00:10:18,600 --> 00:10:22,680 Speaker 5: what we're talking about, but most investors invest in these 203 00:10:22,720 --> 00:10:25,120 Speaker 5: passive index funds, you buy a big chunk of the market, 204 00:10:25,120 --> 00:10:27,320 Speaker 5: the S and P five hundred, the Nasdaq one hundred, 205 00:10:27,360 --> 00:10:31,839 Speaker 5: the Rustle two thousand, whatever. And Elon Musk and SpaceX 206 00:10:31,880 --> 00:10:35,240 Speaker 5: have been campaigning essentially behind the scenes to get these 207 00:10:35,240 --> 00:10:39,480 Speaker 5: index funds to add SpaceX into their indices as quickly 208 00:10:39,480 --> 00:10:42,000 Speaker 5: as possible, and in most cases have succeeded. With the 209 00:10:42,080 --> 00:10:47,040 Speaker 5: SMP has basically said no, but the other indices all said, yeah, sure, 210 00:10:47,080 --> 00:10:50,360 Speaker 5: bring it on. And there's this sense and this has 211 00:10:50,360 --> 00:10:52,720 Speaker 5: showed up in columns in the Times, and I've certainly 212 00:10:52,720 --> 00:10:55,880 Speaker 5: heard this from people that you know, Musk is sort 213 00:10:55,920 --> 00:11:00,200 Speaker 5: of forcing people into this investment at a time time 214 00:11:00,480 --> 00:11:03,400 Speaker 5: when the valuation is very high. Like you may not 215 00:11:03,520 --> 00:11:07,240 Speaker 5: buy SpaceX, but if you own a Nasdaq one hundred 216 00:11:07,679 --> 00:11:11,360 Speaker 5: mutual fund or ETF, you do own it, and you're 217 00:11:11,440 --> 00:11:14,120 Speaker 5: essentially maybe becoming like a bag holder or something for 218 00:11:14,160 --> 00:11:16,600 Speaker 5: Elon Musk. Now, I'm kind of curious what you make 219 00:11:16,600 --> 00:11:17,520 Speaker 5: of that conversation. 220 00:11:17,880 --> 00:11:20,600 Speaker 1: I mean, I love it again, not to be a ghoul, 221 00:11:20,640 --> 00:11:23,280 Speaker 1: but again, like just the fact that you know, the 222 00:11:23,280 --> 00:11:27,920 Speaker 1: broader public is having these discussions about index methodology, UH 223 00:11:27,960 --> 00:11:32,280 Speaker 1: and passive investments, I'm like, hell yeah, in this is 224 00:11:32,320 --> 00:11:35,320 Speaker 1: what we get up in the morning. For SpaceX alone 225 00:11:35,360 --> 00:11:37,960 Speaker 1: isn't probably going to take down your index fund. But 226 00:11:38,000 --> 00:11:40,080 Speaker 1: if it trades, you know, as a block, the Magnificent 227 00:11:40,160 --> 00:11:42,199 Speaker 1: Seven for a long time sort of traded as a group, 228 00:11:42,320 --> 00:11:47,319 Speaker 1: you know it'll have an impact. But it is interesting 229 00:11:47,400 --> 00:11:51,480 Speaker 1: to watch certain indexes bend around SpaceX and then the SMP, 230 00:11:52,400 --> 00:11:56,280 Speaker 1: which has pretty strict methodology, stand by that methodology. You 231 00:11:56,320 --> 00:11:59,439 Speaker 1: can see the argument on either end. For an index provider, 232 00:11:59,480 --> 00:12:02,000 Speaker 1: you want to be representative of the market. We've never 233 00:12:02,040 --> 00:12:06,160 Speaker 1: had an IPO of this size, and to leave SpaceX out, 234 00:12:06,280 --> 00:12:08,400 Speaker 1: you know, it's easy to make the argument you're not 235 00:12:09,080 --> 00:12:12,480 Speaker 1: representing the slice of the market or whatever your index 236 00:12:12,559 --> 00:12:14,560 Speaker 1: is trying to do. Whereas S and P on the 237 00:12:14,600 --> 00:12:17,840 Speaker 1: other side, you know, has a pretty easy argument that 238 00:12:18,200 --> 00:12:20,120 Speaker 1: you know, we have these rules for a reason and 239 00:12:20,160 --> 00:12:21,120 Speaker 1: we're sticking by them. 240 00:12:21,679 --> 00:12:21,880 Speaker 8: Yeah. 241 00:12:21,880 --> 00:12:25,240 Speaker 5: I mean, MUSK just has so much leverage, like in 242 00:12:25,320 --> 00:12:28,079 Speaker 5: so many different ways. And I think part of what 243 00:12:28,200 --> 00:12:30,120 Speaker 5: was going on Katie kind of hinted at it is 244 00:12:30,120 --> 00:12:32,280 Speaker 5: that you know, there's a fear that if you don't 245 00:12:32,320 --> 00:12:34,720 Speaker 5: add SpaceX to the index, then you're doing a disserta. 246 00:12:35,280 --> 00:12:39,360 Speaker 5: What happens when those data centers go to space and 247 00:12:39,480 --> 00:12:42,319 Speaker 5: you know, all of the crazy predictions in this IPO 248 00:12:42,480 --> 00:12:45,880 Speaker 5: document pan out, and like then the the the four 249 00:12:45,920 --> 00:12:48,040 Speaker 5: oh one k people or whatever have missed out. That's 250 00:12:48,080 --> 00:12:51,520 Speaker 5: the kind of risk of non including But also these 251 00:12:52,000 --> 00:12:54,640 Speaker 5: these some of these companies were competing for the SpaceX listing. 252 00:12:54,720 --> 00:12:57,640 Speaker 5: NASPAC is going to list SpaceX, So you do sort 253 00:12:57,679 --> 00:12:59,880 Speaker 5: of wonder. I think they've denied that there was any 254 00:13:00,040 --> 00:13:01,719 Speaker 5: kind of conflict of interest. This is just for the 255 00:13:01,720 --> 00:13:04,400 Speaker 5: good of the investors, but there have been those questions raised. 256 00:13:04,880 --> 00:13:09,040 Speaker 5: I'm wondering, we're about to have a few extra trillion 257 00:13:09,080 --> 00:13:11,800 Speaker 5: dollars go into the stock market. You're talking about a 258 00:13:11,800 --> 00:13:16,000 Speaker 5: lot of retail money. You're talking about a very volatile sector. 259 00:13:16,400 --> 00:13:18,720 Speaker 5: Is there any risk in your mind that if this 260 00:13:18,880 --> 00:13:22,320 Speaker 5: IPO goes bad, if it doesn't you know, if it 261 00:13:22,320 --> 00:13:24,600 Speaker 5: pops and then crashes, or if it crashes or whatever. 262 00:13:25,000 --> 00:13:26,720 Speaker 5: You know, we don't know what's going to happen, that 263 00:13:26,800 --> 00:13:30,080 Speaker 5: it could bring down the entire AI trade. Or do 264 00:13:30,120 --> 00:13:33,240 Speaker 5: you think the like the sort of singularity of Elon 265 00:13:33,360 --> 00:13:35,720 Speaker 5: Musk will mean that this sort of just operates on 266 00:13:35,760 --> 00:13:37,040 Speaker 5: its own kind of island. 267 00:13:37,480 --> 00:13:39,960 Speaker 1: Well, I think it is going to be extremely important 268 00:13:39,960 --> 00:13:43,600 Speaker 1: for sentiment, and certainly you've seen a lot of pessimists 269 00:13:43,679 --> 00:13:47,400 Speaker 1: argue that, like we're watching the top form in real time, 270 00:13:47,600 --> 00:13:49,800 Speaker 1: like you can see the bubble rate here and here 271 00:13:49,880 --> 00:13:52,760 Speaker 1: comes the pinprick. We have to see how it goes. Obviously, 272 00:13:53,040 --> 00:13:56,840 Speaker 1: I do think if it goes poorly, it'll be interesting 273 00:13:56,880 --> 00:13:59,920 Speaker 1: to see what it means for the pipeline of companies 274 00:14:00,200 --> 00:14:03,120 Speaker 1: who are perhaps considering their own IPOs. I think that 275 00:14:03,520 --> 00:14:07,640 Speaker 1: might be the more important ripple effect, because if SpaceX 276 00:14:07,679 --> 00:14:12,600 Speaker 1: gets a strange or rocky reception from the public markets, 277 00:14:12,640 --> 00:14:15,960 Speaker 1: you know, one of the most anticipated IPOs of all time, 278 00:14:16,080 --> 00:14:19,040 Speaker 1: if not all time. If you're a regular company hanging 279 00:14:19,080 --> 00:14:21,680 Speaker 1: out in the pipeline waiting to see if you want 280 00:14:21,680 --> 00:14:24,040 Speaker 1: to jump in the pool, that could absolutely have a 281 00:14:24,120 --> 00:14:24,840 Speaker 1: chilling effect. 282 00:14:25,040 --> 00:14:26,840 Speaker 7: This is going to be a very interesting we will 283 00:14:26,840 --> 00:14:28,920 Speaker 7: all be watching gooulishly, I guess yeah. 284 00:14:28,920 --> 00:14:31,280 Speaker 3: Thank you for bringing Katie Dreifel the. 285 00:14:31,200 --> 00:14:36,120 Speaker 5: Ghoulish perspective to everybody's business. Check out Money Stuff the podcast, 286 00:14:36,280 --> 00:14:39,360 Speaker 5: check out the Clothes on Bloomberg TV. Subscribe to ETFIQ. Katie, 287 00:14:39,360 --> 00:14:47,880 Speaker 5: Thank you for being here. Thank you for having me, Stacy. 288 00:14:48,400 --> 00:14:50,840 Speaker 5: The world of sports is on fire right now. The 289 00:14:50,960 --> 00:14:54,800 Speaker 5: NBA Finals, as we mentioned, in full swing. As we record, 290 00:14:55,160 --> 00:14:57,320 Speaker 5: the Knicks are ahead of the Spurs in the series 291 00:14:57,360 --> 00:15:00,240 Speaker 5: three games one. The final game of the series, I 292 00:15:00,280 --> 00:15:02,840 Speaker 5: have been told with so much authority by everyone I 293 00:15:02,840 --> 00:15:04,000 Speaker 5: know in New York City is going to be on 294 00:15:04,000 --> 00:15:07,880 Speaker 5: Saturday night. And that is before or as the World 295 00:15:07,960 --> 00:15:10,640 Speaker 5: Cup starts. The World Cup will kickoff today Mexico over 296 00:15:10,760 --> 00:15:14,520 Speaker 5: South Africa. It is sports madness here. It's a sight 297 00:15:14,560 --> 00:15:15,000 Speaker 5: to see. 298 00:15:15,080 --> 00:15:17,680 Speaker 7: I know, the whole city seems kind of consumed with 299 00:15:17,920 --> 00:15:19,960 Speaker 7: sports fever of all kinds. 300 00:15:20,000 --> 00:15:21,320 Speaker 2: I feel like it's on the subway and it's on 301 00:15:21,360 --> 00:15:21,760 Speaker 2: the streets. 302 00:15:21,800 --> 00:15:25,320 Speaker 7: And I was in Idaho last week and everybody was 303 00:15:25,360 --> 00:15:26,720 Speaker 7: asking me about the Knicks. 304 00:15:26,800 --> 00:15:28,480 Speaker 5: We were talking about this before we had to bring 305 00:15:28,520 --> 00:15:32,080 Speaker 5: on Randall Williams, Bloomberg sports reporter, who is here with us. 306 00:15:32,440 --> 00:15:34,440 Speaker 6: Randall, welcome, Thank you all for having me. 307 00:15:34,480 --> 00:15:37,280 Speaker 9: And I also want these listeners to know that both 308 00:15:37,320 --> 00:15:39,040 Speaker 9: of you all are wearing mixed shirts today. 309 00:15:39,080 --> 00:15:40,120 Speaker 6: Did you all say that. 310 00:15:41,520 --> 00:15:42,040 Speaker 2: We did? 311 00:15:42,400 --> 00:15:44,520 Speaker 7: I feel like mine is a little bit unearned you, 312 00:15:44,640 --> 00:15:46,440 Speaker 7: but I'm wearing it with Is. 313 00:15:46,400 --> 00:15:51,200 Speaker 5: It like a journalistic Are we committing some sort of journalists. 314 00:15:50,640 --> 00:15:52,640 Speaker 9: No, because you all don't cover sports. But if you 315 00:15:52,680 --> 00:15:55,120 Speaker 9: attend a sports game and you are wearing team apparel, 316 00:15:55,240 --> 00:15:56,800 Speaker 9: that's low key a Cardinals soon. 317 00:15:57,040 --> 00:16:00,760 Speaker 6: So randle your hat as both teams. Yeah, it's oh, 318 00:16:00,920 --> 00:16:04,200 Speaker 6: it is random teams. 319 00:16:03,880 --> 00:16:05,920 Speaker 9: And it has an NBA Finals on the front and 320 00:16:05,960 --> 00:16:07,920 Speaker 9: it has the Larry O'Brien trophy on the other side. 321 00:16:07,960 --> 00:16:11,120 Speaker 7: No bias, Okay, okay, I appreciate this very much, it's 322 00:16:11,200 --> 00:16:11,880 Speaker 7: very professional. 323 00:16:12,240 --> 00:16:15,080 Speaker 5: Before we begin, Randall, we have to play you some 324 00:16:15,200 --> 00:16:18,200 Speaker 5: tape from some fans. We sent producers Jasmine J. T. 325 00:16:18,360 --> 00:16:21,320 Speaker 5: Green and Miles J. Herzenhorn to a local sports bar 326 00:16:21,440 --> 00:16:24,000 Speaker 5: in midtown Manhattan, right around the corner for Madison Square 327 00:16:24,040 --> 00:16:26,080 Speaker 5: Garden where the game was taking place, to get a 328 00:16:26,120 --> 00:16:27,920 Speaker 5: pulse of the game three action. 329 00:16:28,840 --> 00:16:31,360 Speaker 8: So, can you guys tell us how much you spent 330 00:16:31,480 --> 00:16:35,520 Speaker 8: on next merchandise, food, drinks and other things during this 331 00:16:35,560 --> 00:16:36,400 Speaker 8: finals run so far? 332 00:16:36,480 --> 00:16:39,320 Speaker 3: At least one hundred bucks, one hundred and fifty. 333 00:16:39,040 --> 00:16:44,800 Speaker 9: Bucks, probably five hundred eight yeah, probably like three grandow. 334 00:16:45,120 --> 00:16:47,480 Speaker 8: I've been to a couple of games, been gossop, have 335 00:16:47,560 --> 00:16:49,320 Speaker 8: a jersey on. I got a lot of Jerseys. 336 00:16:49,960 --> 00:16:50,880 Speaker 6: Guess is crazy. 337 00:16:51,240 --> 00:16:52,840 Speaker 3: Where do you drive from h. 338 00:16:52,920 --> 00:16:55,920 Speaker 8: Corney Allen and then you have to pay for parking Manhattan? Yeah, 339 00:16:56,040 --> 00:16:58,080 Speaker 8: so you went to San Antonio, you flew there, bought it? 340 00:16:58,600 --> 00:16:58,920 Speaker 6: I did. 341 00:16:59,400 --> 00:17:01,360 Speaker 8: How much did that cost you in total if you 342 00:17:01,440 --> 00:17:04,520 Speaker 8: had to gas? Uh, probably like a thousand bucks ticket 343 00:17:04,560 --> 00:17:07,520 Speaker 8: and flight. Yeah, yeah, that's not a bad deal. 344 00:17:07,640 --> 00:17:07,960 Speaker 3: Yeah. 345 00:17:08,040 --> 00:17:10,679 Speaker 8: I'm good credit card points, so that helps. I just 346 00:17:10,720 --> 00:17:14,840 Speaker 8: got another hat and it was like maybe around thirty bucks, 347 00:17:14,880 --> 00:17:17,800 Speaker 8: probably up charge because of how good the next we're doing, 348 00:17:17,960 --> 00:17:21,160 Speaker 8: but a hundred percent worth it. I'd sell my house 349 00:17:21,200 --> 00:17:22,280 Speaker 8: to watch Jalen Bronson. 350 00:17:22,359 --> 00:17:25,840 Speaker 5: Yeah, I'm definitely drinking more and going to more bars 351 00:17:25,880 --> 00:17:26,680 Speaker 5: than I normally would. 352 00:17:26,760 --> 00:17:28,200 Speaker 8: It'd be good for your while I and your lever 353 00:17:28,280 --> 00:17:29,200 Speaker 8: of Nicks one and five. 354 00:17:29,760 --> 00:17:32,080 Speaker 5: Uh, it'd be good for my heart, it'd be good 355 00:17:32,080 --> 00:17:33,640 Speaker 5: for my cordisol levels. 356 00:17:33,840 --> 00:17:36,399 Speaker 8: Uh, it's the Knicks one in five. What do you 357 00:17:36,400 --> 00:17:38,800 Speaker 8: think about the price of tickets for the actual game. 358 00:17:40,240 --> 00:17:41,920 Speaker 6: I think it's that's kind of insane. 359 00:17:42,119 --> 00:17:44,440 Speaker 5: The fans, like more recently, are probably the ones going 360 00:17:44,440 --> 00:17:46,760 Speaker 5: to the game and won't spend that amount of money, But. 361 00:17:46,800 --> 00:17:49,560 Speaker 3: Like the diehard fans can't afford to go to that. 362 00:17:49,800 --> 00:17:50,680 Speaker 3: That think's kind of fair. 363 00:17:51,240 --> 00:17:53,959 Speaker 8: What are you looking forward to at the WATS party. 364 00:17:54,440 --> 00:17:57,879 Speaker 8: I'm looking for to spending more money. I'm just looking 365 00:17:57,880 --> 00:17:59,520 Speaker 8: forward and WINNI and five. 366 00:17:59,640 --> 00:18:01,760 Speaker 5: We're gonna back crazy on when the Necks are down 367 00:18:01,960 --> 00:18:04,760 Speaker 5: because I'm gonna make that big bread when next win 368 00:18:04,840 --> 00:18:05,320 Speaker 5: that chip. 369 00:18:05,800 --> 00:18:06,320 Speaker 8: That's it. 370 00:18:06,640 --> 00:18:08,680 Speaker 2: Oh the house thing. 371 00:18:08,800 --> 00:18:11,800 Speaker 7: I can't get over the guy who says he would 372 00:18:11,840 --> 00:18:12,560 Speaker 7: sell his house. 373 00:18:12,920 --> 00:18:15,439 Speaker 6: It doesn't surprise me. Knicks fans are rabid. 374 00:18:16,040 --> 00:18:19,399 Speaker 7: You were there, You were at this game that you 375 00:18:19,480 --> 00:18:21,840 Speaker 7: have to I mean you were like quoting celebrities in 376 00:18:21,880 --> 00:18:24,560 Speaker 7: the in the top of your article. So tell us, 377 00:18:24,680 --> 00:18:26,800 Speaker 7: just tell us everything. What was it like being there? 378 00:18:26,920 --> 00:18:28,399 Speaker 7: What was the feeling. 379 00:18:28,160 --> 00:18:28,840 Speaker 2: In the stadium? 380 00:18:29,000 --> 00:18:30,280 Speaker 6: So you brought up celebrities. 381 00:18:30,840 --> 00:18:33,320 Speaker 9: Game three, I was sitting at a press conference and 382 00:18:33,359 --> 00:18:36,080 Speaker 9: I just panned to my right and Ben Stiller is 383 00:18:36,160 --> 00:18:39,119 Speaker 9: right there from me to Max, which is I don't know. 384 00:18:39,119 --> 00:18:39,879 Speaker 6: A yard. 385 00:18:41,119 --> 00:18:44,760 Speaker 9: In length, and he's recording on his phone and he's 386 00:18:44,800 --> 00:18:46,600 Speaker 9: then on game four he's like, hey, I saw you 387 00:18:46,640 --> 00:18:47,040 Speaker 9: recording me. 388 00:18:47,080 --> 00:18:49,679 Speaker 6: Can I have that video? And so I air dropped 389 00:18:49,680 --> 00:18:50,159 Speaker 6: a video. 390 00:18:50,600 --> 00:18:52,680 Speaker 2: Wait, so you just like have Ben Steelller's information. 391 00:18:52,800 --> 00:18:55,280 Speaker 9: Now I don't he we did the everyone for ten 392 00:18:55,320 --> 00:18:59,800 Speaker 9: minutes and the air drop option. But it's things like 393 00:18:59,800 --> 00:19:01,840 Speaker 9: that that happened all the time. Of course, Taylor Swift 394 00:19:01,960 --> 00:19:06,240 Speaker 9: was at Game four. Film Fat Joe, Spike Lee, of course, 395 00:19:06,280 --> 00:19:09,640 Speaker 9: Timothy Shamaley, like so many celebrities, Kylie Jenner, So many 396 00:19:09,680 --> 00:19:16,160 Speaker 9: celebrities are there. And David, Yes, him too, Larry David David. Yeah, 397 00:19:16,200 --> 00:19:17,920 Speaker 9: we can't and we can't forget. We can't forget the 398 00:19:17,920 --> 00:19:18,959 Speaker 9: biggest celebrity of them all. 399 00:19:19,240 --> 00:19:21,160 Speaker 3: Ye Bloomberg, Yeah, that's right. 400 00:19:21,359 --> 00:19:21,800 Speaker 2: Was he there? 401 00:19:21,960 --> 00:19:23,320 Speaker 6: Was he? He was there for both guys. 402 00:19:23,359 --> 00:19:25,399 Speaker 9: He took a shot in Game three, but he came back, 403 00:19:26,000 --> 00:19:29,119 Speaker 9: pulled up for Game four, sat steady in the seat. 404 00:19:29,280 --> 00:19:30,920 Speaker 6: No nobody ran into him and get. 405 00:19:30,920 --> 00:19:35,120 Speaker 5: All disclosure, Mike Bloomberg owns the company that makes this podcast. 406 00:19:35,400 --> 00:19:35,880 Speaker 6: Exactly. 407 00:19:36,040 --> 00:19:37,679 Speaker 9: At one point, when it was halftime and I think 408 00:19:37,720 --> 00:19:39,760 Speaker 9: they were down twenty seven, I was having a conversation 409 00:19:39,800 --> 00:19:41,600 Speaker 9: with another journalist and I was like, thank God, we'll 410 00:19:41,600 --> 00:19:43,760 Speaker 9: be back here for game six, because that is what 411 00:19:43,800 --> 00:19:46,040 Speaker 9: I was rooting for. Like people ask my bias, I 412 00:19:46,160 --> 00:19:48,840 Speaker 9: root for a good story, and the best stories are 413 00:19:48,880 --> 00:19:51,640 Speaker 9: often in six or seven games. But if the Knicks 414 00:19:51,680 --> 00:19:53,760 Speaker 9: are going to win in five. This is how it 415 00:19:53,760 --> 00:19:57,879 Speaker 9: should be done. Like at twenty nine point comeback is miraculous. 416 00:19:57,359 --> 00:20:00,199 Speaker 3: Greatest comeback in the history of the NBA Finals. It 417 00:20:00,280 --> 00:20:00,919 Speaker 3: is okay. 418 00:20:01,280 --> 00:20:03,560 Speaker 5: So we talked Randall, I don't know what it was 419 00:20:03,640 --> 00:20:05,880 Speaker 5: like a month and a half ago, two months ago, 420 00:20:06,400 --> 00:20:10,040 Speaker 5: about baseball and the sort of question of like which 421 00:20:10,160 --> 00:20:12,480 Speaker 5: was the second most popular sport in America? And in 422 00:20:13,119 --> 00:20:15,639 Speaker 5: that conversation we got into some of the issues that 423 00:20:15,800 --> 00:20:18,639 Speaker 5: basketball has been having. I love this conversation. I remember 424 00:20:18,680 --> 00:20:20,960 Speaker 5: we talked about, you know, the NBA Finals ratings last 425 00:20:21,000 --> 00:20:23,639 Speaker 5: year were pretty bad, and I think you said something 426 00:20:23,760 --> 00:20:26,560 Speaker 5: like part of what you brought up was the fact 427 00:20:26,600 --> 00:20:29,480 Speaker 5: that we had two sort of small market teams. No 428 00:20:29,560 --> 00:20:32,919 Speaker 5: disrespect to the great cities of Indianapolis and Oklahoma City, 429 00:20:33,160 --> 00:20:36,000 Speaker 5: but they are not as big as New York and 430 00:20:36,040 --> 00:20:39,520 Speaker 5: San Antonio. How different has this been from last year? 431 00:20:39,560 --> 00:20:41,560 Speaker 5: What are the TV ratings like? What is the sort 432 00:20:41,600 --> 00:20:44,040 Speaker 5: of business around the NBA Finals this year? 433 00:20:44,320 --> 00:20:46,640 Speaker 9: So I can tell you just I've been to three 434 00:20:46,680 --> 00:20:49,120 Speaker 9: of the four games, and the energy around this year's 435 00:20:49,160 --> 00:20:52,600 Speaker 9: Finals is tenfold higher than it was last year. And 436 00:20:52,640 --> 00:20:55,800 Speaker 9: it has nothing to do really with the teams themselves. 437 00:20:55,880 --> 00:20:58,879 Speaker 9: It's just the aura around the game, and the Knicks 438 00:20:58,920 --> 00:21:01,480 Speaker 9: haven't been back there history. They haven't been back to 439 00:21:01,480 --> 00:21:04,119 Speaker 9: the final since nineteen ninety nine, and that history matters. 440 00:21:04,200 --> 00:21:06,760 Speaker 9: It matters a lot in terms of storytelling. Now you 441 00:21:06,800 --> 00:21:09,240 Speaker 9: look at the other side, the San Antonio Spurs have 442 00:21:10,200 --> 00:21:12,560 Speaker 9: Victor one Binyama, who is the tallest person I have 443 00:21:12,680 --> 00:21:14,640 Speaker 9: ever met in my life, by. 444 00:21:14,880 --> 00:21:18,560 Speaker 7: Arguably the greatest fastball player and like a sketch artist 445 00:21:18,640 --> 00:21:19,600 Speaker 7: and in a book. 446 00:21:19,400 --> 00:21:21,920 Speaker 9: Club, yes he is, I would say Victor one Binyama. 447 00:21:21,960 --> 00:21:23,479 Speaker 9: They call him the Alien. I would also call him 448 00:21:23,520 --> 00:21:24,159 Speaker 9: the Philosopher. 449 00:21:24,320 --> 00:21:26,160 Speaker 2: I feel like he's like a renaissance man. 450 00:21:26,480 --> 00:21:30,199 Speaker 9: Wemby is just insane. He has the opposite effect of 451 00:21:30,200 --> 00:21:32,919 Speaker 9: Steph Curry. Where Steph Curry is like you see yourself 452 00:21:32,920 --> 00:21:34,960 Speaker 9: on him in some aspect because he is your height, 453 00:21:35,280 --> 00:21:37,280 Speaker 9: he wears probably a similar shoe size as you. 454 00:21:37,400 --> 00:21:38,440 Speaker 6: Wemby's the opposite. 455 00:21:38,520 --> 00:21:40,600 Speaker 9: He's the tallest person you've ever met, and yet he 456 00:21:40,640 --> 00:21:43,520 Speaker 9: does things that nobody that tall has ever done. So 457 00:21:43,640 --> 00:21:47,800 Speaker 9: you combined the biggest media market with a Nick's winning 458 00:21:47,840 --> 00:21:51,680 Speaker 9: streak unlike any in NBA history, against a seven foot 459 00:21:51,920 --> 00:21:55,680 Speaker 9: four giant and now you have the makings for a 460 00:21:56,080 --> 00:21:56,760 Speaker 9: heavyweight fight. 461 00:21:57,280 --> 00:21:59,680 Speaker 2: Let's talk a little bit about the money here. 462 00:22:00,119 --> 00:22:04,200 Speaker 7: Like ticket prices, they're high, but they they're very dynamic 463 00:22:04,240 --> 00:22:05,880 Speaker 7: all the time, So talk about that a little bit. 464 00:22:05,920 --> 00:22:08,359 Speaker 9: So this is at one point in time was the 465 00:22:08,400 --> 00:22:11,560 Speaker 9: second most expensive or third most expensive sporting event ever 466 00:22:11,720 --> 00:22:13,840 Speaker 9: behind super Bowl fifty. 467 00:22:13,640 --> 00:22:16,200 Speaker 3: Eight based on secondary market ticket price. 468 00:22:16,280 --> 00:22:17,720 Speaker 6: I believe so. I believe so. 469 00:22:19,080 --> 00:22:22,000 Speaker 9: I believe that's super Bowl fifty eight or fifty seven. 470 00:22:22,359 --> 00:22:24,000 Speaker 9: The one that was in Las Vegas between the Chiefs 471 00:22:24,000 --> 00:22:26,680 Speaker 9: and the forty nine Ers was the most expensive sporting 472 00:22:26,680 --> 00:22:28,880 Speaker 9: event of all time on the secondary market. I believe 473 00:22:28,920 --> 00:22:30,879 Speaker 9: that ticket was selling for ten thousand dollars. When a 474 00:22:30,920 --> 00:22:36,199 Speaker 9: Knicks one game two, the price is just skyrocketed. And so, yes, absolutely, 475 00:22:36,240 --> 00:22:38,879 Speaker 9: our regular regular Knicks fans priced out of this. 476 00:22:39,400 --> 00:22:41,080 Speaker 6: Yes they are. Is it fair? 477 00:22:41,600 --> 00:22:46,440 Speaker 9: I would argue, potentially, because sports are a luxury experience. Now, 478 00:22:46,640 --> 00:22:49,080 Speaker 9: the best thing that a Knicks fan that makes an 479 00:22:49,119 --> 00:22:51,359 Speaker 9: average salary of whatever he wanted to find an average 480 00:22:51,359 --> 00:22:53,800 Speaker 9: salary is to go watch them in Philly. You're not 481 00:22:53,920 --> 00:22:56,080 Speaker 9: going to be able to get in or go watch them. 482 00:22:56,160 --> 00:22:59,320 Speaker 9: Potentially in Barclays, You're not going to be able to 483 00:22:59,359 --> 00:23:02,360 Speaker 9: just pay for or a Knicks ticket, because these prices 484 00:23:02,400 --> 00:23:05,440 Speaker 9: are outrageous and it isn't just NBA related, it's all sports. 485 00:23:05,640 --> 00:23:09,040 Speaker 5: So this this conversation is a is a good segue 486 00:23:09,119 --> 00:23:12,119 Speaker 5: to the World Cup because that is another thing, and 487 00:23:12,119 --> 00:23:14,800 Speaker 5: we've been talking about it on this show, about the 488 00:23:14,840 --> 00:23:18,360 Speaker 5: ticket prices, about the hotel bookings. There have been all 489 00:23:18,400 --> 00:23:21,440 Speaker 5: these signs this thing that we're seeing with the NBA Finals, 490 00:23:21,480 --> 00:23:24,720 Speaker 5: where everything is clicking. You have a perfect matchup a 491 00:23:25,040 --> 00:23:29,400 Speaker 5: budding star versus like a complete and lovable team. You've 492 00:23:29,440 --> 00:23:31,480 Speaker 5: got the New York media market, You've got all this merch, 493 00:23:31,520 --> 00:23:33,680 Speaker 5: you've got bars, you've got parties on the streets. That's 494 00:23:33,760 --> 00:23:35,879 Speaker 5: kind of what the World Cup is hoping for on 495 00:23:35,920 --> 00:23:39,879 Speaker 5: a grander scale. We have seen some signs over the 496 00:23:39,920 --> 00:23:41,840 Speaker 5: last couple of months that things may not be going 497 00:23:41,880 --> 00:23:42,240 Speaker 5: that way. 498 00:23:42,480 --> 00:23:43,800 Speaker 3: Tickets not selling as well. 499 00:23:43,960 --> 00:23:47,120 Speaker 5: Although I have to say, Randall, as we're getting closer, 500 00:23:47,520 --> 00:23:50,200 Speaker 5: I'm starting to catch that fever, that World Cup fever. 501 00:23:50,080 --> 00:23:53,720 Speaker 2: Starting to fever talk about. 502 00:23:53,480 --> 00:23:55,800 Speaker 5: The kind of controversy and the and the and the 503 00:23:55,960 --> 00:23:58,159 Speaker 5: sort of sense that this thing might not you know, 504 00:23:58,320 --> 00:23:59,720 Speaker 5: pan out the way FIFA hopes. 505 00:24:00,119 --> 00:24:03,000 Speaker 9: Back months when FIFA awarded President Trump at Peace Prize, 506 00:24:03,040 --> 00:24:06,919 Speaker 9: something that didn't exist forgot about that before President Trump's 507 00:24:06,960 --> 00:24:10,240 Speaker 9: arrival into office. And then you talk about ticket prices, 508 00:24:10,280 --> 00:24:13,080 Speaker 9: you talk about infrastructure, You talk about you know, New 509 00:24:13,160 --> 00:24:15,560 Speaker 9: Jersey at one point in time charging one hundred and 510 00:24:15,600 --> 00:24:17,440 Speaker 9: fifty round trip to get to met Life. 511 00:24:17,480 --> 00:24:20,240 Speaker 3: That since down to a very reasonable ninety eight dollars. 512 00:24:20,600 --> 00:24:22,280 Speaker 2: Just to get to the statey state. 513 00:24:22,520 --> 00:24:24,480 Speaker 5: You have to pay the train that normally costs like 514 00:24:24,560 --> 00:24:25,480 Speaker 5: Showbox or whatever. 515 00:24:25,760 --> 00:24:28,399 Speaker 9: Bloomberg will be paying that on my behalf, or or 516 00:24:28,440 --> 00:24:30,640 Speaker 9: the other option is a two hundred and fifty dollars uber. 517 00:24:30,840 --> 00:24:32,680 Speaker 2: You have a very cool job, Randall. 518 00:24:32,720 --> 00:24:34,800 Speaker 9: Yes, but I'm also a company man and I'm in 519 00:24:34,800 --> 00:24:36,120 Speaker 9: the business of not spending. 520 00:24:36,200 --> 00:24:38,320 Speaker 5: You could put on a wet suit and swim, which 521 00:24:38,320 --> 00:24:39,560 Speaker 5: would be less expensive. 522 00:24:40,119 --> 00:24:42,720 Speaker 6: I never thought of that. I never thought of No, 523 00:24:43,480 --> 00:24:45,000 Speaker 6: I considered. I considered. 524 00:24:45,040 --> 00:24:46,640 Speaker 9: At one point in time, I was thinking I would 525 00:24:46,680 --> 00:24:49,200 Speaker 9: take a city bike, but then I remembered that MetLife 526 00:24:49,240 --> 00:24:52,240 Speaker 9: is in a swamp. But going back to the problems 527 00:24:52,720 --> 00:24:55,639 Speaker 9: that are happening around the World Cup, there's been a 528 00:24:55,640 --> 00:24:58,240 Speaker 9: lot of conversation about ticket prices because I do think 529 00:24:58,320 --> 00:25:01,040 Speaker 9: that FIFA has handled it the way that they've handled 530 00:25:01,080 --> 00:25:03,760 Speaker 9: in the prices that they've set, the floor is just 531 00:25:03,880 --> 00:25:08,040 Speaker 9: ridiculously high. Set the prices, set the prices, the floor 532 00:25:08,320 --> 00:25:12,480 Speaker 9: has been ridiculously high for a sport that Americans. 533 00:25:12,520 --> 00:25:14,800 Speaker 6: The culture's just not there yet. Now. 534 00:25:14,880 --> 00:25:17,560 Speaker 9: Of course we have big money investors, but are those 535 00:25:17,560 --> 00:25:20,919 Speaker 9: big money investors going to be going to see, you know, 536 00:25:20,960 --> 00:25:23,280 Speaker 9: a South Africa play in Seattle? And I don't know 537 00:25:23,280 --> 00:25:25,720 Speaker 9: that South Africa plays in Seattle. That's just an example 538 00:25:25,720 --> 00:25:30,120 Speaker 9: and hypothetical. I don't know that that's true. Now, France, Spain, 539 00:25:30,600 --> 00:25:33,359 Speaker 9: the US, all of these bigger countries. Of course they 540 00:25:33,400 --> 00:25:35,480 Speaker 9: will fill up the arenas, but it's not really about them. 541 00:25:35,480 --> 00:25:38,720 Speaker 9: The World Cup has always been thought of as a 542 00:25:38,760 --> 00:25:41,800 Speaker 9: sport that's brought people together because of its access, because 543 00:25:41,840 --> 00:25:43,119 Speaker 9: you can just go to a match. 544 00:25:43,240 --> 00:25:44,720 Speaker 6: That is absolutely not the case. 545 00:25:44,800 --> 00:25:47,080 Speaker 9: If I was not a sports journalist, I would not 546 00:25:47,160 --> 00:25:49,639 Speaker 9: be going to the World Cup because it is expensive. 547 00:25:49,800 --> 00:25:52,399 Speaker 9: Not just the ticket to go to the game, the 548 00:25:52,480 --> 00:25:55,119 Speaker 9: parking is more expensive than the round trip that I 549 00:25:55,160 --> 00:25:57,920 Speaker 9: would take to get to met Life. That's absurd. 550 00:25:58,040 --> 00:26:00,600 Speaker 5: There's an aspect of a money grab here, hinting at it, 551 00:26:00,600 --> 00:26:03,320 Speaker 5: but the prices, but also they expanded this tournament. They 552 00:26:03,359 --> 00:26:06,479 Speaker 5: made it forty eight teams and stept thirty two. So 553 00:26:06,520 --> 00:26:08,679 Speaker 5: you have a lot of games that are not going 554 00:26:08,720 --> 00:26:12,320 Speaker 5: to be especially meaningful at the early point of the tournament. 555 00:26:12,640 --> 00:26:16,480 Speaker 5: And then you also have this the kind of negotiations 556 00:26:16,520 --> 00:26:21,600 Speaker 5: with cities where the FIFA, the non profit in scare 557 00:26:21,680 --> 00:26:24,520 Speaker 5: quotes that because they make a ton of money, but 558 00:26:24,600 --> 00:26:27,840 Speaker 5: the nonprofit that kind of runs a World Cup has 559 00:26:27,920 --> 00:26:32,040 Speaker 5: demanded huge concessions from all the cities. Now I want 560 00:26:32,080 --> 00:26:33,760 Speaker 5: to just zero in on one thing you brought up, though, 561 00:26:33,800 --> 00:26:36,960 Speaker 5: which is like the popularity of soccer in the United States, 562 00:26:37,000 --> 00:26:40,240 Speaker 5: because on one hand, I think you're right, like it hasn't 563 00:26:40,280 --> 00:26:42,280 Speaker 5: taken off the way that some people hoped. On the 564 00:26:42,320 --> 00:26:47,720 Speaker 5: other hand, earlier this week Argentina and Iceland played a 565 00:26:47,840 --> 00:26:51,280 Speaker 5: meaningless game in Auburn, Alabama, and filled that stadium up 566 00:26:51,400 --> 00:26:54,520 Speaker 5: ninety thousand people in a college football stadium Alabama, And 567 00:26:54,560 --> 00:26:56,520 Speaker 5: there are scenes like this all over the United States. 568 00:26:56,600 --> 00:27:00,120 Speaker 5: There is there are a lot of American soccer fans. 569 00:27:00,240 --> 00:27:04,280 Speaker 5: They're just sort of not cohering maybe in the way 570 00:27:04,320 --> 00:27:07,159 Speaker 5: that some of the people who run soccer in the 571 00:27:07,240 --> 00:27:08,640 Speaker 5: US thought as. 572 00:27:08,600 --> 00:27:13,320 Speaker 9: Far as soccer culture or European football culture in the US, 573 00:27:13,600 --> 00:27:15,760 Speaker 9: it does exist in pockets, but it depends. 574 00:27:15,760 --> 00:27:17,680 Speaker 6: You brought up Argentina in Iceland. 575 00:27:17,480 --> 00:27:20,520 Speaker 5: But Alabama not exactly a hotbed of soccer. 576 00:27:20,760 --> 00:27:22,359 Speaker 6: That's true, that's true. 577 00:27:22,400 --> 00:27:24,840 Speaker 9: But I think that Alabama is also a star of 578 00:27:24,880 --> 00:27:28,000 Speaker 9: sports market, like they don't really have Auburn and Alabama 579 00:27:28,080 --> 00:27:31,760 Speaker 9: are their professional teams. So you bring a national team 580 00:27:31,840 --> 00:27:35,400 Speaker 9: that has a reputation in Argentina, the defending champions there, 581 00:27:35,440 --> 00:27:37,440 Speaker 9: and I think that that will sell. And I think, 582 00:27:37,600 --> 00:27:40,720 Speaker 9: you know, you take things farther than that in terms 583 00:27:40,720 --> 00:27:42,920 Speaker 9: of what it means for soccer in the US. Can 584 00:27:42,960 --> 00:27:45,760 Speaker 9: you all name me five players on the US national team? 585 00:27:46,280 --> 00:27:48,520 Speaker 2: I can, but absolutely not so. 586 00:27:48,960 --> 00:27:51,520 Speaker 9: But I bet you could probably name three players who 587 00:27:51,520 --> 00:27:53,359 Speaker 9: played in the Super Bowl or five players who played 588 00:27:53,359 --> 00:27:56,880 Speaker 9: in the Super Bowl. Yes, And granted, the MLS has 589 00:27:56,920 --> 00:28:00,280 Speaker 9: not been around as long as the NFL, NBA, m BE. 590 00:28:00,720 --> 00:28:03,680 Speaker 9: It's not built into American culture the same way as 591 00:28:03,960 --> 00:28:05,320 Speaker 9: the other sports are. 592 00:28:05,480 --> 00:28:07,200 Speaker 6: But this is an opportunity to do that. 593 00:28:07,480 --> 00:28:10,159 Speaker 3: Just to spin this forward. So you brought up the 594 00:28:10,880 --> 00:28:12,800 Speaker 3: lack of popularity of MLS. 595 00:28:12,960 --> 00:28:14,720 Speaker 6: Sure, there are other leagues in. 596 00:28:14,720 --> 00:28:17,000 Speaker 5: This country, that are very popular, and like, if the 597 00:28:17,000 --> 00:28:19,920 Speaker 5: World Cup is successful, what does that look like and 598 00:28:20,560 --> 00:28:24,760 Speaker 5: how might that impact the business of soccer going forward. 599 00:28:24,960 --> 00:28:28,159 Speaker 9: I think that in order for soccer to be dramatically 600 00:28:28,200 --> 00:28:31,359 Speaker 9: impacted in the US, number one, Team USA has to 601 00:28:31,359 --> 00:28:32,439 Speaker 9: get to the round of sixteen. 602 00:28:32,680 --> 00:28:34,960 Speaker 6: I'm not saying that. That's what everyone has told me. 603 00:28:35,400 --> 00:28:39,560 Speaker 9: Everyone said Team USA success is instrumental because kids need 604 00:28:39,600 --> 00:28:42,800 Speaker 9: to see Americans at least get to the knockout stage. 605 00:28:42,960 --> 00:28:44,600 Speaker 9: That's what everyone has been told to me. When I 606 00:28:44,680 --> 00:28:46,479 Speaker 9: was at a Fox Sporting event, everyone said they need 607 00:28:46,520 --> 00:28:47,560 Speaker 9: to get to the round of sixteen. 608 00:28:47,640 --> 00:28:51,280 Speaker 6: That is where the lights will shine bright. I am bullish. 609 00:28:51,360 --> 00:28:52,040 Speaker 3: I think I was. 610 00:28:54,040 --> 00:28:56,440 Speaker 9: We haven't brought up something important though. We haven't brought 611 00:28:56,480 --> 00:28:59,880 Speaker 9: up the political angle of this, which is that President Trump, 612 00:29:00,120 --> 00:29:02,480 Speaker 9: at any point in time, as we saw with Game three, 613 00:29:02,560 --> 00:29:05,400 Speaker 9: can press a button and decide that I'm going to 614 00:29:05,440 --> 00:29:09,160 Speaker 9: go to a game, and he could decide whatever country 615 00:29:09,200 --> 00:29:12,320 Speaker 9: that he may not like on that given day. Let's 616 00:29:12,400 --> 00:29:16,200 Speaker 9: just bring an ice and we don't know what that 617 00:29:16,280 --> 00:29:19,040 Speaker 9: looks like. What is federal enforcement? What is security going 618 00:29:19,080 --> 00:29:21,160 Speaker 9: to look like at these games? One of the bigger 619 00:29:21,240 --> 00:29:24,760 Speaker 9: conversations overseas, is are people going to be safe here? 620 00:29:25,120 --> 00:29:25,400 Speaker 6: What is? 621 00:29:26,040 --> 00:29:27,880 Speaker 9: Are they going to be able to get in and 622 00:29:28,040 --> 00:29:31,520 Speaker 9: out of the stadium and back to their hotel without 623 00:29:31,520 --> 00:29:35,080 Speaker 9: somebody checking to see if they have their proper identification? 624 00:29:35,760 --> 00:29:40,200 Speaker 9: That accessibility has has not existed the same way the 625 00:29:40,320 --> 00:29:44,000 Speaker 9: level of tension that exists here in America didn't exist 626 00:29:44,120 --> 00:29:45,080 Speaker 9: in the. 627 00:29:45,240 --> 00:29:47,080 Speaker 3: World Cups in authoritarian countries. 628 00:29:50,720 --> 00:29:51,720 Speaker 6: Controversy as well. 629 00:29:52,000 --> 00:29:56,320 Speaker 9: But I think President Trump has a louder voice, absolutely, 630 00:29:56,400 --> 00:29:59,560 Speaker 9: and he will go to a game, I'm absolutely sure. 631 00:30:00,080 --> 00:30:00,920 Speaker 6: But what does he say? 632 00:30:01,200 --> 00:30:02,800 Speaker 3: All right, we'll be watching Randall. 633 00:30:02,960 --> 00:30:04,800 Speaker 5: We'll have to have you back as this tournament's going 634 00:30:04,880 --> 00:30:06,400 Speaker 5: to go on for like a month, so we will 635 00:30:06,440 --> 00:30:08,760 Speaker 5: be able to reassess before too long. 636 00:30:09,160 --> 00:30:12,640 Speaker 9: All month up until July nineteenth, when the final list. 637 00:30:13,160 --> 00:30:15,000 Speaker 3: Thanks for joining us. 638 00:30:14,080 --> 00:30:25,640 Speaker 5: Thanks okay, Stacey, it's time for underrated stories and okay, yes, 639 00:30:25,800 --> 00:30:27,880 Speaker 5: I've got a good one for you. This is This 640 00:30:28,000 --> 00:30:31,520 Speaker 5: is a juicy, maybe even thought provoking, debate worthy piece. 641 00:30:33,000 --> 00:30:36,480 Speaker 5: This was a paper that was published by an economist 642 00:30:36,480 --> 00:30:37,880 Speaker 5: at Middlebury. 643 00:30:37,440 --> 00:30:38,320 Speaker 2: College, White Paper. 644 00:30:40,560 --> 00:30:43,240 Speaker 7: I'm very excited, but it's about I feel like we're 645 00:30:43,240 --> 00:30:44,160 Speaker 7: growing as a show. 646 00:30:44,320 --> 00:30:46,920 Speaker 5: Now. The National Bureau of economic research. That's the that's 647 00:30:46,920 --> 00:30:49,960 Speaker 5: what published. Uh. This this paper by Caitlin Myers and 648 00:30:50,000 --> 00:30:55,680 Speaker 5: Ezekiel Hooper, and this is a study suggesting that an 649 00:30:55,800 --> 00:31:01,400 Speaker 5: underrated form of birth control is your iPhone, not your smartphone, 650 00:31:01,560 --> 00:31:02,840 Speaker 5: literally the iPhone. 651 00:31:02,920 --> 00:31:05,680 Speaker 7: Explain explain this because it's very This has been causing 652 00:31:05,800 --> 00:31:07,200 Speaker 7: quite a stir online. 653 00:31:07,320 --> 00:31:11,680 Speaker 5: So doctor Myers and UH and mister Hopper, who's I 654 00:31:11,720 --> 00:31:15,080 Speaker 5: believe her student, looked at and this is a really 655 00:31:15,640 --> 00:31:18,400 Speaker 5: smart study that they did looking at the fact. You 656 00:31:18,440 --> 00:31:20,680 Speaker 5: remember when the iPhone came out and it was only 657 00:31:21,600 --> 00:31:24,600 Speaker 5: only available if you had AT and T, So they 658 00:31:24,760 --> 00:31:28,520 Speaker 5: looked at they use that fact that some areas have 659 00:31:28,640 --> 00:31:31,240 Speaker 5: better AT and T coverage than others as sort of 660 00:31:31,240 --> 00:31:34,880 Speaker 5: a proxy for whether or not UH people had the iPhone. 661 00:31:35,280 --> 00:31:39,240 Speaker 5: And then they tried to control for other things like income, education, 662 00:31:39,520 --> 00:31:42,440 Speaker 5: other things that might lead to a drop in pregnancy. 663 00:31:42,800 --> 00:31:47,840 Speaker 5: And they found that overall iPhone use correlated with lower 664 00:31:48,120 --> 00:31:49,160 Speaker 5: birth rates. 665 00:31:49,600 --> 00:31:52,120 Speaker 3: Especially mostly among the young people. 666 00:31:52,400 --> 00:31:54,800 Speaker 5: The biggest drop I believe was like from fourteen or 667 00:31:54,840 --> 00:31:57,840 Speaker 5: fifteen to twenty four, so to teenagers and young adults, 668 00:31:58,040 --> 00:32:01,760 Speaker 5: but across the board. And and this comes after another 669 00:32:01,880 --> 00:32:05,160 Speaker 5: study that also that showed a similar thing. There are 670 00:32:05,160 --> 00:32:08,080 Speaker 5: a lot of people in the social sciences who are 671 00:32:08,120 --> 00:32:10,240 Speaker 5: really excited about this work. You know, I think there's 672 00:32:10,280 --> 00:32:13,440 Speaker 5: a lot of like sort of cultural zeitgeist around this 673 00:32:13,560 --> 00:32:17,040 Speaker 5: where it's like, oh, maybe people are texting or something 674 00:32:17,080 --> 00:32:19,560 Speaker 5: too much and that's causing them to like not make friends. 675 00:32:20,360 --> 00:32:23,120 Speaker 5: That's a possibility, but it's really not the only possibility here. 676 00:32:23,160 --> 00:32:26,200 Speaker 5: Could be people getting you know, more information about about 677 00:32:26,720 --> 00:32:28,280 Speaker 5: you know, birth control and things like that. 678 00:32:28,280 --> 00:32:31,280 Speaker 7: Right like yeah, or like where's the nearest CVS or. 679 00:32:31,200 --> 00:32:34,040 Speaker 5: Something exactly yeah, or watching too much pornography or whatever. 680 00:32:34,040 --> 00:32:36,480 Speaker 5: So there are like a lot of options, but it's 681 00:32:36,560 --> 00:32:39,920 Speaker 5: it's super interesting and and the implication, now, I'm going 682 00:32:40,000 --> 00:32:41,800 Speaker 5: to say this is a soft implication. This is not 683 00:32:41,880 --> 00:32:44,480 Speaker 5: parenting advice, but that you know, you might want to 684 00:32:44,520 --> 00:32:48,520 Speaker 5: give your teenagers smartphones at of sex education. 685 00:32:48,320 --> 00:32:49,120 Speaker 2: Instead of the talk. 686 00:32:49,440 --> 00:32:52,120 Speaker 7: You're just like, son, we need to talk. Here's your 687 00:32:52,160 --> 00:32:53,880 Speaker 7: iPhone and unlimited minutes. 688 00:32:54,240 --> 00:32:57,480 Speaker 5: I realize this cuts against other stories we talked about 689 00:32:57,520 --> 00:33:00,280 Speaker 5: on this podcast, but I found it really interesting. The 690 00:33:00,400 --> 00:33:03,080 Speaker 5: Times wrote a good write up at this piece that's 691 00:33:03,080 --> 00:33:03,760 Speaker 5: worth checking out. 692 00:33:04,040 --> 00:33:08,720 Speaker 7: Well, this is really like the whole economic community has 693 00:33:08,800 --> 00:33:10,760 Speaker 7: really been talking about this. 694 00:33:10,960 --> 00:33:14,160 Speaker 2: I noticed this online. It's very interesting because. 695 00:33:13,880 --> 00:33:16,280 Speaker 7: It's not typically the type of study that gets a 696 00:33:16,280 --> 00:33:20,240 Speaker 7: lot of economic attention. But people have been saying, no, 697 00:33:20,840 --> 00:33:24,400 Speaker 7: this is because of the economic downturn that happened into things. 698 00:33:24,160 --> 00:33:26,400 Speaker 5: Almost at the exact same time that they came out, 699 00:33:26,480 --> 00:33:29,560 Speaker 5: which I gotta say that is pretty persuasive. The I 700 00:33:29,600 --> 00:33:32,240 Speaker 5: will say that the authors of this study did try 701 00:33:32,280 --> 00:33:35,640 Speaker 5: to control for economic effects. They also don't contend that 702 00:33:35,720 --> 00:33:38,400 Speaker 5: it is the entire it's responsible for the entire drop. 703 00:33:38,440 --> 00:33:39,360 Speaker 3: It's just a factor. 704 00:33:40,480 --> 00:33:43,440 Speaker 5: I think the paper is is careful, but I agree 705 00:33:43,480 --> 00:33:47,120 Speaker 5: with you Stacy, like it seems like maybe more research 706 00:33:47,280 --> 00:33:51,160 Speaker 5: is required before we, you know, cancel sex education and 707 00:33:51,240 --> 00:33:52,320 Speaker 5: just start handing out iPhone. 708 00:33:52,600 --> 00:33:54,920 Speaker 7: There's just a lot of like interpersonal relationships that are 709 00:33:55,080 --> 00:34:00,400 Speaker 7: uncomfortable and awkward, especially in the romantic way, and if 710 00:34:00,400 --> 00:34:04,720 Speaker 7: you can like substitute that for something that has no awkwardness, 711 00:34:04,760 --> 00:34:07,560 Speaker 7: no barrier to entry. This is why I think maybe 712 00:34:07,560 --> 00:34:09,880 Speaker 7: AI is going to be a big problem. 713 00:34:10,239 --> 00:34:13,160 Speaker 5: Yeah, no, I totally agree. I think I think AI 714 00:34:13,760 --> 00:34:14,560 Speaker 5: and I've even heard. 715 00:34:14,440 --> 00:34:17,600 Speaker 2: That are talking about and the internet is not all. 716 00:34:17,640 --> 00:34:19,839 Speaker 5: Right, I know you have oh my gosh, well good 717 00:34:19,880 --> 00:34:20,600 Speaker 5: underrated story. 718 00:34:20,960 --> 00:34:22,399 Speaker 3: Yes, delighted to hear mine. 719 00:34:22,440 --> 00:34:29,200 Speaker 7: I discovered on my smartphone, so brace yourself. This also, 720 00:34:29,320 --> 00:34:32,640 Speaker 7: I think could be an effective form of birth control, 721 00:34:32,920 --> 00:34:35,960 Speaker 7: which is okay. You know how when movies launch, especially 722 00:34:36,000 --> 00:34:38,680 Speaker 7: summer movies, it's all about the merch, right, It's like 723 00:34:38,760 --> 00:34:39,920 Speaker 7: Marvel movies or. 724 00:34:39,880 --> 00:34:42,800 Speaker 2: The Star Wars movies and the launch Burger King and 725 00:34:42,840 --> 00:34:43,439 Speaker 2: stuff like that. 726 00:34:43,760 --> 00:34:46,040 Speaker 7: Well, the biggest hit of this summer so far is 727 00:34:46,080 --> 00:34:48,800 Speaker 7: this movie called back Rooms, right, Yeah. 728 00:34:48,640 --> 00:34:49,680 Speaker 3: We talked about it last week. 729 00:34:49,760 --> 00:34:52,760 Speaker 5: Yeah, kind of at that creepy horror movie type thing totally. 730 00:34:52,760 --> 00:34:55,120 Speaker 7: And it's set in this kind of liminal space of 731 00:34:55,200 --> 00:34:58,279 Speaker 7: an abandoned office you know that sort of infinitely goes 732 00:34:58,320 --> 00:34:58,800 Speaker 7: on forever. 733 00:34:58,960 --> 00:35:03,000 Speaker 2: Creepy. Well, how do you make merch out of the 734 00:35:03,040 --> 00:35:03,680 Speaker 2: back rooms? 735 00:35:04,239 --> 00:35:06,719 Speaker 5: I mean I was thinking maybe it leads to a 736 00:35:06,800 --> 00:35:11,520 Speaker 5: resurgence of like airport waiting room type places. 737 00:35:11,880 --> 00:35:13,719 Speaker 3: Are people going to escape the. 738 00:35:13,800 --> 00:35:17,360 Speaker 5: DMVs now with more enthusiasm. 739 00:35:17,600 --> 00:35:20,120 Speaker 2: Field trips and DMBs? I think there's I think there's 740 00:35:20,120 --> 00:35:20,759 Speaker 2: something to that. 741 00:35:21,000 --> 00:35:24,160 Speaker 7: Well, right now, there is something called the back rooms 742 00:35:24,320 --> 00:35:30,000 Speaker 7: fragrance that has been driven by this company called Unjust 743 00:35:30,400 --> 00:35:35,279 Speaker 7: X Romance Planet X. It has this this fragrance, and 744 00:35:35,760 --> 00:35:37,640 Speaker 7: it is forty four dollars? 745 00:35:37,840 --> 00:35:39,960 Speaker 3: Now is it a is this a unisex fragrance? Is 746 00:35:40,000 --> 00:35:41,640 Speaker 3: this for men or womenx? 747 00:35:41,800 --> 00:35:42,040 Speaker 2: Yes? 748 00:35:42,280 --> 00:35:42,800 Speaker 3: Okay? 749 00:35:42,880 --> 00:35:45,920 Speaker 5: And is it did the back rooms people like participating 750 00:35:46,000 --> 00:35:48,440 Speaker 5: this or is this just kind of like a parody fragrance? 751 00:35:48,800 --> 00:35:50,520 Speaker 2: Excellent question? Unclear? 752 00:35:50,880 --> 00:35:51,840 Speaker 3: What does it smell like? 753 00:35:52,120 --> 00:35:52,480 Speaker 2: Okay? 754 00:35:52,520 --> 00:35:57,000 Speaker 7: Here are the notes musty, woody and atmospheric liminal in 755 00:35:57,040 --> 00:36:02,320 Speaker 7: a bottle. Top notes old wallpaper, wet carpet, mahogany and dust, 756 00:36:03,000 --> 00:36:08,560 Speaker 7: the heart and bass Apparently these are perfume terms, dark musk, cedar, leather, 757 00:36:08,880 --> 00:36:12,120 Speaker 7: a hazy ozonic spaciousness, and ceiling. 758 00:36:12,360 --> 00:36:15,280 Speaker 5: Can I just say, yeah, I know that's not supposed 759 00:36:15,280 --> 00:36:16,399 Speaker 5: to smell good, but. 760 00:36:17,280 --> 00:36:17,920 Speaker 2: You're feeling it. 761 00:36:18,040 --> 00:36:20,000 Speaker 3: It kind of you're feeling. 762 00:36:20,640 --> 00:36:22,880 Speaker 5: And I have not seen the movie, so maybe you know, 763 00:36:22,960 --> 00:36:25,000 Speaker 5: once I see the ghosts that appear or whatever happens, 764 00:36:25,840 --> 00:36:27,920 Speaker 5: I actually have no idea what happens, but you know, 765 00:36:28,000 --> 00:36:30,239 Speaker 5: maybe that would change my feelings about the scent. 766 00:36:30,440 --> 00:36:33,600 Speaker 3: But but right now I don't know. I'm I'm what 767 00:36:33,760 --> 00:36:34,040 Speaker 3: is it? 768 00:36:34,120 --> 00:36:35,440 Speaker 2: What is it that's drawing you in? 769 00:36:38,280 --> 00:36:39,040 Speaker 3: Sound? Okay? 770 00:36:39,280 --> 00:36:45,040 Speaker 5: Mahogany ore U was leather in there? Even yeah, ozonic openness. 771 00:36:45,080 --> 00:36:46,880 Speaker 5: I don't quite know what that means. 772 00:36:46,640 --> 00:36:49,240 Speaker 2: But hazy, ozonic spaciousness. 773 00:36:48,719 --> 00:36:49,080 Speaker 3: Kind of. 774 00:36:50,880 --> 00:36:55,279 Speaker 5: Place and I don't hate it. So all of those 775 00:36:55,320 --> 00:37:04,719 Speaker 5: things sound somewhat appealing. This show is produced by Jasmine JT. Green, 776 00:37:04,840 --> 00:37:08,320 Speaker 5: Stacey Wong, and Miles J. Herson or Magnus Henrickson is 777 00:37:08,360 --> 00:37:12,280 Speaker 5: our supervising producer, Sam Rogic handles engineering, and Dave Purcell 778 00:37:12,400 --> 00:37:15,680 Speaker 5: fact checks. Special thanks to Jeff Muscus, Julia Rubin and 779 00:37:15,760 --> 00:37:18,239 Speaker 5: Maria Ling. If you have a minute, please rate and 780 00:37:18,239 --> 00:37:19,960 Speaker 5: review our show. It'll mean a lot to us. And 781 00:37:20,000 --> 00:37:21,720 Speaker 5: if you have a story that should be our business, 782 00:37:21,920 --> 00:37:25,040 Speaker 5: email us at Everybody's at Bloomberg dot net. That's everybody 783 00:37:25,120 --> 00:37:27,720 Speaker 5: with nus at Bloomberg dot net. Thank you for listening 784 00:37:27,760 --> 00:37:32,160 Speaker 5: and we will see you next week.