Speaker 1: This is the Bloomberg Surveillance Podcast. I'm Tom Keene along
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Speaker 1: What you do when you have a jumble of a
Speaker 1: day like yesterday, as you call somebody that can synthesize
Speaker 1: it across economics at Market's David Rosenberg coming up later,
Speaker 1: but right now, Michael Darter with us from Roth MKM.
Speaker 1: They're chief economist and market strategists as well. Michael, we
Speaker 1: haven't done it yet this morning. Let's dive into the
Speaker 1: inflation statistic. Do you leave as I heard others Robin Brooks,
Speaker 1: I thought was outstanding on Twitter last night that some
Speaker 1: of this is a January effect where you could jump
Speaker 1: conditions in certain service sector inflation subsets.
Speaker 3: Hi Tom thanks for having me on. Look, this was
Speaker 3: not a good report for the January CPI. The core
Speaker 3: number accelerated pretty dramatically, and you know, even if you're
Speaker 3: stripping there's been a lot of talk about, you know,
Speaker 3: housing and the rental inflation. Even if you take that out,
Speaker 3: the FED looks at a gauge of non energy services
Speaker 3: prices excluding housing, and that accelerated pretty dramatically. So the
Speaker 3: markets did not take this well. When your price for
Speaker 3: profession and you have a set back, then you see
Speaker 3: a dumplake we had yesterday. All of that said, you know,
Speaker 3: let's not go into a complete panic over one number.
Speaker 3: The FED does focus on the PCE deflator, which is
Speaker 3: a different index, and there's been a pretty big gap
Speaker 3: between the two. So if you look at the core
Speaker 3: inflation readings from the PCE deflator over the last seven months, they're,
Speaker 3: you know, basically in line with the Fed's target one
Speaker 3: point nine percent average annualized growth. But the CPI core
Speaker 3: CPI readings have been much higher, and the divergence is
Speaker 3: about triple the historical average. Usually the CPI runs thirty
Speaker 3: to fifty basis points above the PCE deflator, and you know,
Speaker 3: we're we're seeing a gap about three times is wide now.
Speaker 3: So if we take a step back, you know, I
Speaker 3: think that the you know, the the CPI data could
Speaker 3: be overstating the inflation problem here. Nominal spending. If you
Speaker 3: look at nominal final sales to the private sector, over
Speaker 3: the course of time that we've had these better PCE
Speaker 3: core PCEE readings, we've essentially slowed to trend. So if
Speaker 3: aggregate demand total spending in the economy has slowed to trend,
Speaker 3: then that's going to take the inflation pressure off over time.
Speaker 3: So let's not completely go into a full blown panic
Speaker 3: over one number here.
Speaker 4: And Michael, you know, I'm looking at the kind of
Speaker 4: how the market traded yesterday. I mean, the indexes were off,
Speaker 4: you know, kind of one and a half percent ish,
Speaker 4: volume was kind of in line. It seemed like a
Speaker 4: reasonable kind of market response after kind of the big
Speaker 4: rips we've seen in November, December and strengthen. Maybe it's
Speaker 4: just a healthy day in the market yesterday.
Speaker 3: Oh, no doubt about it, Paul, no doubt about it.
Speaker 3: I mean, you know, the run that we've seen, especially
Speaker 3: in the S and P five hundred, led by infotech
Speaker 3: and consumer discretionary basically at seven stocks dominating the index.
Speaker 3: I mean, these valuations have really become stretched and we
Speaker 3: have a momentum market. It doesn't take much. It just
Speaker 3: needs to be some change of the narrative, whether it's
Speaker 3: sustained or not. And you see what we saw yesterday,
Speaker 3: so you just can't have a straight up market. We're
Speaker 3: starting to move into pretty unhealthy territory where you start
Speaker 3: to get worried about what could be on the other side.
Speaker 3: I mean, these kinds of valuations tend to be rarely
Speaker 3: seen in history and never sustained. So we're at levels
Speaker 3: now where your price to perfection and you do have
Speaker 3: to worry about threats to the you know, the perfect
Speaker 3: narrative unfolding.
Speaker 4: So part of that part of that narrative, Michael, is
Speaker 4: kind of the Federal Reserve obviously, and I think the uh,
Speaker 4: you know, the markets expectation is that that march is
Speaker 4: clearly off the table. FED Chairman j pob is pretty
Speaker 4: clear about that on those recent comments. But now the
Speaker 4: I guess the focus has shifted to May or June
Speaker 4: for the initiation of some rate cuts. Did yesterday's data
Speaker 4: kind of change your view? Where do you think the
Speaker 4: Fed's going to come out here.
Speaker 3: It's interesting. I mean, our thought was that the FED
Speaker 3: was probably going to push back on the timing and
Speaker 3: both the timing and magnitude of the easing expectations that
Speaker 3: were in the market, even if you think the economy
Speaker 3: is going to underperform this year. I mean, the Fed's
Speaker 3: framework is to look at SLACK and the labor market.
Speaker 3: You know, we've had you know, we have haven't really
Speaker 3: had a material increase in SELAC in the labor market yet,
Speaker 3: just very just very and they're watching things like financial conditions,
Speaker 3: which you know, based on our market discussion, have eased
Speaker 3: pretty dramatically. So I wasn't surprised to see Powell push back.
Speaker 3: And then if you get data like we saw, you know,
Speaker 3: with the with the CPI readings for January, then that
Speaker 3: genally enforces it. So I do think they're going to
Speaker 3: be pretty cautious in terms of when they start this process.
Speaker 3: And you know, we'll see you know, obviously we'll have
Speaker 3: more data before we get to the May meeting, but yes,
Speaker 3: for sure, March looks.
Speaker 2: Like I'm going to go walk right now. You can
Speaker 2: do this with Michael data.
Speaker 1: I'm doing an event and Michael data Kid comes up
Speaker 1: to me and on his phone he has his email
Speaker 1: from when he was an intern at Bloomberg and we
Speaker 1: were talking about the ambiguity of Hixe and and Slutsky
Speaker 1: and income distribution and substitution effect.
Speaker 2: We're not going to go over this on Valentine's Day.
Speaker 5: Thank you.
Speaker 1: But but Michael, what's great about this is that I
Speaker 1: identify as a euclidean ambiguity of our micro economics. Right now,
Speaker 1: we've got macro ambiguity with higher interest rates. Can we
Speaker 1: have a good economy and a good stock market because
Speaker 1: we pop nominal GDP and get a better revenue stream
Speaker 1: than expected?
Speaker 3: Well, I think that has been the story, tom right.
Speaker 3: I mean, we're sitting here talking about an interest rate
Speaker 3: structure that none of us thought was likely several years ago,
Speaker 3: right right, And so that's really been driven by the
Speaker 3: business cycle, the vigorousness of the upswing from the COVID recession,
Speaker 3: and you know, in the inflationary environment that we've been in.
Speaker 3: So you know, if you want to get wonky here,
Speaker 3: it means that the neutral interest rate, the Viccilian equilibrium rate,
Speaker 3: is higher setting like we've had then in the last
Speaker 3: business cycle where we had very slow growth, very low inflation,
Speaker 3: a lot of deleveraging pressures. Right, So this is you know,
Speaker 3: this is something that's that's quite different. What makes this
Speaker 3: tricky going forward is you know, is the FED actually
Speaker 3: restrictive now or is the FED not restrictive? And there's
Speaker 3: a big debate about that. People talking about financial conditions
Speaker 3: are too loose. So the FED really isn't restrictive. But
Speaker 3: let's drill into markets. If we look at forward looking
Speaker 3: measures of inflation expectations, you know, those have reverted to
Speaker 3: levels that are consistent with price stability. That was not
Speaker 3: the case when we went into the early evenings of
Speaker 3: the FED tightening those rights inflation break even spreads or
Speaker 3: telling the Fed they were really miles behind the curve.
Speaker 3: That's not the case now. So the Fed actually does
Speaker 3: have the real rate if you use forward looking inflation
Speaker 3: expectations at pretty cyclically high levels. And I do think
Speaker 3: that is going to mean, you know, the economy is
Speaker 3: going to continue to slow too, if not below trend.
Speaker 3: And the trick for the FED will be the timing
Speaker 3: on starting the rate cuts. If they're too late, then
Speaker 3: you get a recession. If they're too soon, then you're
Speaker 3: going to have persistent inflation.
Speaker 1: Michael Data, thank you, thank you, thank you. On short
Speaker 1: notice today after what we saw yesterday. Michael Darter with
Speaker 1: his spartan emails in it says time get the sequence straight,
Speaker 1: Paul save them.
Speaker 4: Yes, absolutely we can do that right now because I'm
Speaker 4: people trying to get a sense here giving that sol
Speaker 4: if we had yesterday kind of what does it all
Speaker 4: mean here as we think about what the Fed's going
Speaker 4: to do and what these equity markets are going to do.
Speaker 4: So we figured it was a good time to check
Speaker 4: you on.
Speaker 3: Geena.
Speaker 4: Martin Adam Sheet leads all of our equity strategy for
Speaker 4: Bloomberg Intelligence. Gina, I guess I was looking at yesterday's trading.
Speaker 4: It's just a normal, healthy pullback in reaction to a
Speaker 4: data point that the market wasn't discounting.
Speaker 6: Not much more than that. Am I being naive there?
Speaker 5: No?
Speaker 7: I don't think you're being naive.
Speaker 8: I just think there is a degree of volatility and
Speaker 8: rights markets. It's really difficult for the equity market to
Speaker 8: absorb on a daily basis. There was nothing in the
Speaker 8: inflation report, frankly that was terribly damaging for the profits
Speaker 8: outlook for companies. As a matter of fact, when we
Speaker 8: look at the long term scheme of things, CPI holding
Speaker 8: in pretty steady, with PPI decelerating and import prices fallowing,
Speaker 8: is a great environment for margin growth for the S
Speaker 8: and P five hundred. That's been the characteristic that has
Speaker 8: defined the margin recovery of the last year. So the
Speaker 8: inflation report in and of itself was not necessarily damaging
Speaker 8: to the outlook for stocks, but it did clearly create
Speaker 8: a lot of rate volatility, and the rates market seems
Speaker 8: to be incredibly frenetic. That is creating some valuation disruption
Speaker 8: for the equity market, as there is some follow through
Speaker 8: from rates onto stocks.
Speaker 7: Frankly, though, when we just threw.
Speaker 8: Past five thousand, we had very strong momentum in the
Speaker 8: SNP five hundred. A couple bit of a couple near
Speaker 8: term breadth breakdowns last week would have suggested that we
Speaker 8: weren't due for some sort of modest consolidation phase in
Speaker 8: the index anyway.
Speaker 2: So here's what I do.
Speaker 1: I'm only doing this to pretend g you have to
Speaker 1: radio gig doesn't work out, YouTube and car plack can
Speaker 1: go work for GENA carry our.
Speaker 2: Coffee and Jana.
Speaker 1: What I would do here is I take two standard
Speaker 1: deviations trading envelope off of the VIX, and the VIX
Speaker 1: here is at fourteen point six y two, doing better
Speaker 1: than eighteen at one point yesterday, even with the eighteen spike. Yesterday,
Speaker 1: I didn't get a Fibonacci across the two standard deviations.
Speaker 1: The fibonacci was eighteen point six to two center tendency.
Speaker 1: We didn't even get back to center tendency, and now
Speaker 1: we're back down to a twenty three percent Fibonacci. The
Speaker 1: answer is, we are so far advanced we need a
Speaker 1: huge pullback to normalize, don't we.
Speaker 8: Well, we would, and certainly you would normally see greater
Speaker 8: than two percent down days start to emerge if we
Speaker 8: were moving into some sort of bigger, longer term corrective process.
Speaker 8: You know, these one to two percent days. Anything less
Speaker 8: than two percent is frankly just a normal trading day
Speaker 8: in the world of equity. So to have stocks down
Speaker 8: relatively modestly yesterday, yeah, it's a down day, and we
Speaker 8: hadn't become terribly accustomed to those down days over the
Speaker 8: last several weeks of gains. But it's a normal down day.
Speaker 8: In the grand scheme of things, really, with the Vics,
Speaker 8: we don't worry about anything under twenty. Frankly, the long
Speaker 8: term you usually seeing that spiked to twenty as indicative
Speaker 8: of underlying volatility weakness emerging.
Speaker 1: I mean, I bought my first shares off Triple Lovers
Speaker 1: Dog cash, Paul, like three days ago, and I'm way underwater.
Speaker 6: That's all right. Sorry, you've taken a long term view here, Gina.
Speaker 4: We're about seventy five percent of the way through the
Speaker 4: earning cycle here. I kind of feel like it's not
Speaker 4: getting much attention. It's all fed this, fed that. What
Speaker 4: are you taking away in your team in terms of
Speaker 4: what we've seen in the earning cycle.
Speaker 8: Oh, you're absolutely right, Paul. It's been a really fascinating
Speaker 8: earning season actually, because the S and P five hundred
Speaker 8: is on track to post greater than six percent earnings growth.
Speaker 8: The consensus coming into this season was for less than
Speaker 8: two So we're talking S and P five hundred earning
Speaker 8: scrat at triple the pace that that was expected by
Speaker 8: the consensus. Eighty percent of companies have also beat expectations.
Speaker 8: That is substantially better than long term average of sixty
Speaker 8: five and even better than the post COVID average which
Speaker 8: has been abnormally high. So very strong earnings growth at
Speaker 8: least relative to expectations when we exclude the energy sector,
Speaker 8: which remember energy is something we've been watching very carefully
Speaker 8: because it is a net problem for the rest of
Speaker 8: the index. When energy stocks are doing well, excluding the
Speaker 8: energy sector, you're looking at ten percent earnings growth for
Speaker 8: the S and P five hundred and stronger breadths stronger
Speaker 8: recovery emerging for most sectors into the first and second
Speaker 8: quarter of this year. So it has gone largely unnoticed
Speaker 8: or at least uncommented on, as the FED has taken
Speaker 8: a lot of mind share. But frankly, the earnings numbers
Speaker 8: are are much better than expected and painting a pretty
Speaker 8: solid backdrop for stocks right now.
Speaker 4: And I know you guys on your team gena look
Speaker 4: at margins and the trends and margins are these quality
Speaker 4: earnings from what you can tell it to say stage.
Speaker 8: Yeah, it's mixed, to be quite honest, it's very mixed
Speaker 8: by sector, very mixed by industry. When we look at margins,
Speaker 8: net income margins do a computer improving faster than operating margins,
Speaker 8: which I don't want to call it a red flag,
Speaker 8: but it's something to watch for for pervasiveness. You really
Speaker 8: want to see both net income margins and operating margins improving.
Speaker 8: We're not yet there on the operating margin line, which
Speaker 8: does suggest that there may be some income statement of
Speaker 8: manipulations that are helping to improve margins. So we want
Speaker 8: to watch pretty carefully. That's said, certain sectors are improving
Speaker 8: very significantly, namely tech and communications, while other sectors like
Speaker 8: energy and materials are big drugs. That to me is
Speaker 8: not necessarily a bad sign. Energy and materials are commodity
Speaker 8: sensitive sectors. They are cost inputs for a lot of
Speaker 8: the other groups in the S and P, so the
Speaker 8: index can sustain improving fundamental conditions if these two sectors
Speaker 8: are the weak spots.
Speaker 2: Gina Martin Adams, thank you so much.
Speaker 1: I want to call it this because I think it's generational.
Speaker 1: As we go to Alex Webb in London on technology,
Speaker 1: You're a kid from you know, like pretty basic means,
Speaker 1: you play hockey, You end up Paul at the Rhode
Speaker 1: Island School of Design, and then you invent this strange
Speaker 1: thing where you have an apartment and you can rent
Speaker 1: it out and it's another playstory. Of course, it's Airbnb,
Speaker 1: and this is Brian Cheske we're talking about. And what's
Speaker 1: fascinating to me is, all of a sudden, he's a
Speaker 1: grown up six billion dollars sure buy back Uber. All
Speaker 1: of a sudden, they're a grown up with a generational
Speaker 1: and Alex Webb is so wise he can, you know,
Speaker 1: do the generational tilt. Alex Webb is Silicon Valley in
Speaker 1: a broad sense.
Speaker 2: Is tech growing up?
Speaker 9: Yeah, I mean Facebook's kind of like prime example of
Speaker 9: that as well. Meta you know, they doing massive buybacks
Speaker 9: as well. Actually wrote a piece just last week where
Speaker 9: they're really becoming a.
Speaker 5: Lot more like Apple.
Speaker 9: They're realizing that that shareholders care about cash at the
Speaker 9: moment in a way that they perhaps didn't in those
Speaker 9: heady years a few years ago when it was all
Speaker 9: about growth. They obviously not they're not exactly value stocks,
Speaker 9: but there's a massive pivot, which you know, is sensible
Speaker 9: giving the market dynamics.
Speaker 4: And we actually saw better initiade a you know, token dividend,
Speaker 4: but kind of a dividend in line with a yield
Speaker 4: that's in line with Apple.
Speaker 6: So maybe that's a little bit of a trend there, Alex.
Speaker 5: It certainly looks that way.
Speaker 9: And you know, you think also about all the the
Speaker 9: increased focus on efficiency, which you know, unfortunately euphemism in
Speaker 9: many works in many cases for job cuts.
Speaker 5: When you look at the sort of average.
Speaker 9: Revenue per employee at a company like like Mester or
Speaker 9: like Amazon, it fell massively actually in the years up
Speaker 9: to the pandemic because they were just hiring with such gusto.
Speaker 9: What we've seen in the past sort of six eight,
Speaker 9: twelve months is that there seems to be an increased
Speaker 9: focus on that number, that they have realized that their
Speaker 9: employees are not that they're working less efficiently essentially because
Speaker 9: they have too many of them. So we've seen massive
Speaker 9: reductions in headcounts of consequence.
Speaker 4: So, Alex, we did get Uber, another one of those names,
Speaker 4: one of those gig economy companies that's really come into
Speaker 4: its own with maybe some some new management with Derekkaswashahi.
Speaker 6: Now they've got to buy back here.
Speaker 4: That seems to validate them, as I guess adults in
Speaker 4: the room kind of thing.
Speaker 9: Yeah, And it's like, you know, ultimately it's not a
Speaker 9: company that's growing anywhere near at the pace it was
Speaker 9: you know, if you think about back in twenty twenty
Speaker 9: two when you had like of course they did some
Speaker 9: acquisitions as well, which turbo charge it. But you know,
Speaker 9: revenue almost doubled in a twelve month period. Now it's
Speaker 9: the market's looking for a sort of fifteen sixteen percent
Speaker 9: growth rate this year. But crucially it is now profitable,
Speaker 9: right That was not the case for the most of
Speaker 9: its existence throughout fifteen years or something of its existence
Speaker 9: only a decade it was not a profitable company. Now
Speaker 9: that's why it's interesting as well with Lift at the moment,
Speaker 9: because you know they are expected to post a profit
Speaker 9: at least an operating basis for the first time this year.
Speaker 5: That's meaningful.
Speaker 9: Shouldn't be probably given the way we've used to companies,
Speaker 9: but in the world of tech it isn't. It hasn't
Speaker 9: been a given.
Speaker 1: Alex Web with us in London here on Technology Alex.
Speaker 1: One of our emailers thank you for emailing in huge
Speaker 1: alex webfan and they say, Tom, cut the chat on
Speaker 1: these rich guys, alex webber you returning your vision bro?
Speaker 2: Are you just saying enough it doesn't work?
Speaker 5: If I was a rich guy, I might have a
Speaker 5: vision bro. I am not.
Speaker 9: I don't know.
Speaker 5: I mean, it's it was quite interesting.
Speaker 9: There was a video of Mark Zuckerberg basically giving his
Speaker 9: in a heavily verted commerce review of the Vision Pro.
Speaker 9: Surprise surprise, he says, our product is a lot better.
Speaker 9: I mean, the case I've made before is that actually
Speaker 9: Apple doesn't need the vision Pro to be a hit, right,
Speaker 9: It just needs to make sure that whatever Meta comes
Speaker 9: up with is not a hit, because if it sacrifices
Speaker 9: the next you know, vector of computing to a competitor,
Speaker 9: then it's got a big problems in its hands. If
Speaker 9: if like smart glasses, you know, virtuality or mental reality,
Speaker 9: mixed reality, whatever you want to call it, if that
Speaker 9: doesn't take off as a category, that's not really the
Speaker 9: end of the world for Apple. The problem is that
Speaker 9: if it does and Apple's not in there.
Speaker 2: Is a non financial guy.
Speaker 1: When the financial people say Apple has an ecosystem of
Speaker 1: what is a two point two billion pall ye something
Speaker 1: like that?
Speaker 2: Do you see that growing out ginormous to like three
Speaker 2: billion people?
Speaker 1: Is there just an endless Apple universe out there?
Speaker 9: Hard to see how that happens without really going down
Speaker 9: into more affordable devices, right, Like, you know, The reason
Speaker 9: that Apple has managed to continue growing earnings for share
Speaker 9: at a feral clip even as its top line growth
Speaker 9: is slow or in fact last year's shrunk, is because
Speaker 9: it's able to sell more of the top of the
Speaker 9: range devices, devices where you're selling two hundred and fifty
Speaker 9: six gigabytes of memory at a at an eighty five
Speaker 9: percent gross margin, right, whereas the smaller, cheaper devices do
Speaker 9: not have those sort of margins. So, you know, the
Speaker 9: if you're going to get to that next whatever market
Speaker 9: of another billion people, you probably need to be in
Speaker 9: the one hundred two hundred less than three hundred dollars range.
Speaker 5: And I think most Apple typically played well.
Speaker 4: And when we talked to analyst Alex it doesn't sound
Speaker 4: like just let's just take it. In India, for example,
Speaker 4: you could make the case that point if they come
Speaker 4: in with a cheaper phone, man, they can get huge
Speaker 4: market share there, and analysts kind of say them, they're
Speaker 4: going to stick with their high end products and wait
Speaker 4: for the middle class to grow out, you know, similar
Speaker 4: to what they did in China.
Speaker 6: I guess that's the way they're going to go there.
Speaker 9: It's really fascinating India because it's such a price sensitive market.
Speaker 9: If you look at Netflix, it's experience in that market
Speaker 9: where you know, you think of it, Oh, we could
Speaker 9: have four hundred million customers there. Well, you know, actually,
Speaker 9: are you going to get four hundred million people to
Speaker 9: pay you know, something in the order of twelve dollars
Speaker 9: a month? Almost certainly, not certainly not yet, you know,
Speaker 9: it might be in a few years time.
Speaker 5: Now.
Speaker 9: If you if Netflix can't convince people to part with
Speaker 9: you know, ten dollars a month, what's the likelihood of
Speaker 9: Apple being able to convince them to then actually download
Speaker 9: an iPhone, download and iPhone, buy an iPhone, then download
Speaker 9: a huge number of apps of you know, getting Apple Music,
Speaker 9: of getting an iCloud, getting all these things which are
Speaker 9: the flywheel of earnings that that you know, that come
Speaker 9: off the iPhone.
Speaker 1: It's one final question if I can, what's the buzz
Speaker 1: at the Apple store there?
Speaker 2: Where is it? Coven Garden?
Speaker 6: I was going to ask, where is the flagship Apple store?
Speaker 4: Well?
Speaker 5: I think it's is am I right, Alex, I think
Speaker 5: there is this one on Common Garden.
Speaker 9: There's one on Regent Street. Yeah, there are quite quite
Speaker 9: a few swanky locations around.
Speaker 1: What's a swanky coven Garden. Every time I go to London,
Speaker 1: Pharrell's hanging out in line there. But you know, what's
Speaker 1: the what what's the buzz at the Covent Garden store?
Speaker 9: I mean from social medialy So I've not been down
Speaker 9: there myself recently, no, but it's like, you know, everybody
Speaker 9: wants to try the vision pro how you're actually buying
Speaker 9: it different matter now. It doesn't look like there's a
Speaker 9: massive amount of supply anyway, so you know people want
Speaker 9: to try it. There's some suspicion that once people try it,
Speaker 9: maybe you will get more people buying it. But like again,
Speaker 9: that's something where the price has to come down.
Speaker 2: Alex, Thank you, Alex.
Speaker 1: We are brilliant there and use of cash among these
Speaker 1: young terms.
Speaker 2: Paul, to me, this is a huge deal. I've complained
Speaker 2: for years.
Speaker 6: Now.
Speaker 2: I'll look at the front pages.
Speaker 6: What's making news around the.
Speaker 1: World, your daily roundup of today's headlines from major publications.
Speaker 2: Today's pictures and catchers.
Speaker 1: Headlines, of course, always brought you by Interactive Brokers buying
Speaker 1: marketplace access. Interactive Brokers vest selection of over one million
Speaker 1: global fixed income securities. There are no markups or building spread.
Speaker 1: Some low transparent commissions. Learn more at I b k
Speaker 1: r dot com slash bonds. I got an email from
Speaker 1: missus Kean. It's not pictures and Catchers today.
Speaker 6: No, it's Valentine.
Speaker 4: That's what I hear.
Speaker 10: I didn't know that you forget Vale, you too. The
Speaker 10: first story is about Valentine's control room, and missus Keane
Speaker 10: is gonna love this one.
Speaker 5: Okay.
Speaker 10: So the Wall Street Journal is saying self gifting is
Speaker 10: on the rise. So spouses are tired of getting gifts
Speaker 10: that they basically don't like, so they're.
Speaker 7: Gonna buy what they like.
Speaker 10: We're going to the store and we're buying our own gifts.
Speaker 10: And then you have those.
Speaker 7: Who are single, they're treating themselves. You have Gallantine's Day.
Speaker 7: That's the thing, now, please. My daughter and friends had
Speaker 7: got a Galentine's Day party. They have parties. It's all
Speaker 7: the girls, all the single girls. Gullantine's what's Galentines? All
Speaker 7: the single girls? Gals?
Speaker 6: I think gals.
Speaker 2: I get a little slowly.
Speaker 10: But it's good for retailers, right because people are starting
Speaker 10: to shop a little bit more.
Speaker 7: And you even had to Beer's Jewelry. They're offering right
Speaker 7: hand ring collection instead of.
Speaker 6: Oh, really they have pinky rings.
Speaker 7: I'm sure they do.
Speaker 2: Okay, I mean every girl needs a pink.
Speaker 4: I love this quote in this Wall Wall Street journal story.
Speaker 4: My husband is amazing, but he has trouble figuring out
Speaker 4: my taste.
Speaker 10: Sometimes that happens.
Speaker 1: Yes, Gallantine's day every we learn every day, every day,
Speaker 1: every day.
Speaker 10: Next, Okay, Business Insider has this Apparently wealthy Californians they're
Speaker 10: ditching the state and they're going to Beverly Hills of Arizona.
Speaker 7: Which is Paradise Valley, Arizon. I don't know if any
Speaker 7: of you, either of you have ever built to Scott's.
Speaker 2: I'm sorry we did this for Sweeney. I mean I
Speaker 2: saw this in it.
Speaker 1: You know, I'm Lisa and I would never be looking
Speaker 1: at this, but you know, Paradise, Paul.
Speaker 6: This just says you.
Speaker 4: It does, I mean, golf courses, celebrities, perfect.
Speaker 6: Yeah, exactly, eight five two five three good more. Yep.
Speaker 10: Absolutely, it's it's they want the privacy, they want the
Speaker 10: luxurious life style, lower taxes also.
Speaker 7: And the quality of life.
Speaker 2: This is nice, like it's it's outside something Phoenix. I
Speaker 2: don't think it's too so.
Speaker 7: I think it's more like between like Phoenix, Scottsdale, Yeah, Phoenix.
Speaker 2: What's it like there in the summer though?
Speaker 6: Brutal?
Speaker 4: I mean I think it's even worse. I mean one
Speaker 4: hundred degree days and that. You can talk about dry
Speaker 4: heat all you want, but you know, one hundred and
Speaker 4: ten is one hundred and ten.
Speaker 2: So like you with like a winter home there and there?
Speaker 4: I think so, I think that's what. But a lot
Speaker 4: of people are out there kind of full time now.
Speaker 4: I mean, you know, you see you hear the stories
Speaker 4: about folks leaving California for a variety of reasons, whether
Speaker 4: going to Idaho or going to Colorado and now Arizona.
Speaker 6: You know, so paradise.
Speaker 7: Can you see a nice valley?
Speaker 2: Is Bloomberg surveillance, Tom Keane with no life in New
Speaker 2: York City joining us now Paul Sweening.
Speaker 6: The golf course.
Speaker 3: Golf course?
Speaker 5: All right?
Speaker 10: Uh this is from the Wall Street Journal. Apparently there's
Speaker 10: a no fly list for dogs and could be on it.
Speaker 7: I don't know if you take the dogs with you
Speaker 7: when you travel on an airplane, but more people do, Yeah,
Speaker 7: a lot.
Speaker 10: More people, especially since COVID, Yes, when a lot more
Speaker 10: people were buying the dogs and the carriers are cracking down.
Speaker 10: Apparently they're biting their they're batting them for different reasons,
Speaker 10: whether they bite, where they go to the bathroom, where
Speaker 10: they don't behave right. But they're putting a mark on
Speaker 10: their record.
Speaker 7: So when you check in, there's going to be a
Speaker 7: big flag there.
Speaker 6: That's his dogs.
Speaker 4: When Matt Miller relocated, this is years ago, relocated from
Speaker 4: New York to Berlin, he posted a picture on social media.
Speaker 6: His dog, God, I forget the name. It's the worst
Speaker 6: dog name of all time.
Speaker 4: It's a huge dog, had his own first class seat
Speaker 4: on the plane, right next to the map. So really
Speaker 4: talk to go over to Germany. So I don't know
Speaker 4: how that works.
Speaker 7: You do you pay like one hundred and twenty five
Speaker 7: bucks or something?
Speaker 1: What do you do on a long flight? I mean,
Speaker 1: I'm asking for a friend. We're going to take a
Speaker 1: vet bill and I don't feed to Paris here to
Speaker 1: see you know. One of the offspring is early. But
Speaker 1: don't I don't get it.
Speaker 4: They have to fit under the seat in front of you,
Speaker 4: I think is the thing. You have to put them
Speaker 4: in a little bag.
Speaker 2: What do you do four hours in? I don't I
Speaker 2: simply don't get it.
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