WEBVTT - US Payrolls Surprise With Surge 0:00:01.320 --> 0:00:05.680 This is Bloomberg business Week Inside from the reporters and 0:00:05.840 --> 0:00:09.400 editors who bring you America's most trusted business magazine, plus 0:00:09.480 --> 0:00:13.640 global business, finance and tech news. The Bloomberg Business Week 0:00:13.680 --> 0:00:18.600 Podcast with Carol Masser and Tim Stinebec from Bloomberg Radio. 0:00:21.640 --> 0:00:23.960 You took a bit more about this job's report eight thirty. 0:00:24.000 --> 0:00:25.920 I was pretty surprised. I was up there with Scarlett 0:00:25.920 --> 0:00:28.680 Foo We're watching the numbers come through, and we were like, 0:00:28.880 --> 0:00:31.600 what that's when you think this is a mistake. I 0:00:31.640 --> 0:00:35.600 thought that's what it was like, wasn't it Maybe? Yeah, 0:00:36.080 --> 0:00:38.680 it was out of control, all right, So let's get 0:00:38.720 --> 0:00:42.360 to it because this is you know, we we talked 0:00:42.360 --> 0:00:45.000 with Zip recruiter too, and they are seeing a strong 0:00:45.080 --> 0:00:48.239 job's report so and strong jobs market overall. So let's 0:00:48.280 --> 0:00:51.840 see what Becky Frankoitz is seeing. She's chief commercial Officer, 0:00:51.880 --> 0:00:55.320 President Manpower Group North America. She is back with us, 0:00:55.640 --> 0:00:59.000 joining us via zoom from Chicago. Hey, Becky, good to 0:00:59.040 --> 0:01:02.640 have you here with Tim and myself. So glass half full, 0:01:02.720 --> 0:01:04.839 glass half empty when it comes to the jobs market 0:01:04.920 --> 0:01:08.600 in your view, Yeah, I mean it was a blockbuster, 0:01:08.920 --> 0:01:12.480 monstrous number this morning that I don't think anyone expected, Like, 0:01:12.640 --> 0:01:15.600 we knew hospitality and leisure was coming back because our 0:01:15.640 --> 0:01:19.120 real time data told us demand had dramatically increased. We 0:01:19.200 --> 0:01:21.520 knew retail was coming back. But I don't know that 0:01:21.520 --> 0:01:23.640 anybody would have said we'd have over half a million 0:01:23.720 --> 0:01:26.760 jobs created in January. So I would say, always good 0:01:26.800 --> 0:01:28.960 for the American worker. I mean, more jobs are good 0:01:28.959 --> 0:01:31.600 for the American worker. I think the you know, it's 0:01:31.640 --> 0:01:36.000 an economic signal that it becomes uncertain what's to come. Okay, 0:01:36.080 --> 0:01:38.240 So was this at all a surprise to you, given 0:01:38.480 --> 0:01:40.959 that you have such a good read on where the 0:01:41.000 --> 0:01:44.880 economy is, what employers are looking for, what employees are 0:01:44.920 --> 0:01:47.720 looking for. I mean again, you admitted that nobody saw 0:01:47.760 --> 0:01:50.240 this coming, but um, did this hit you the same 0:01:50.280 --> 0:01:53.520 way it hit kind of everyone else? Yeah? So again, Tim, 0:01:53.680 --> 0:01:56.680 we knew hospital and leisure was coming, We knew retail 0:01:56.800 --> 0:02:00.920 was coming. New health continues regis nurses are still the 0:02:00.920 --> 0:02:03.720 most in demand job in our country, so we knew 0:02:03.760 --> 0:02:05.400 all of that. I would have said it was we 0:02:05.400 --> 0:02:08.080 saw demands start to come back in January, which you 0:02:08.080 --> 0:02:11.040 know is unusual, right because usually seasonally we start to 0:02:11.040 --> 0:02:14.720 see a reduction in headcount, particularly in retail as they 0:02:14.720 --> 0:02:17.160 had just from the holiday season. But when we started 0:02:17.160 --> 0:02:19.280 seeing that start to take off in the first couple 0:02:19.320 --> 0:02:21.359 of weeks of January, we knew it was going to 0:02:21.440 --> 0:02:24.160 be a positive, a very positive jobs report, and that 0:02:24.320 --> 0:02:26.680 it was. You know, the most encouraging thing I'll tell 0:02:26.720 --> 0:02:30.200 you is the participation. Just a little bit of tweak up, 0:02:30.280 --> 0:02:32.640 but I'll take it because we need every person that 0:02:32.720 --> 0:02:35.200 wants to contribute to the economy working. So I was 0:02:35.400 --> 0:02:37.840 very pleased to see that, particularly for women. You know, 0:02:37.880 --> 0:02:40.200 it was really funny. Becky Um Matt Miller came off 0:02:40.240 --> 0:02:42.880 his show on radio at noon is like, wait, wait, Mass, 0:02:43.080 --> 0:02:44.440 you know, pull up this chart, pull up this chart, 0:02:44.480 --> 0:02:46.160 and it was not farm Rales, and it's like, you know, 0:02:46.320 --> 0:02:48.480 we're not supposed to see this kind of job creation 0:02:49.200 --> 0:02:52.240 in January. Just what you were speaking to, right, Usually 0:02:52.240 --> 0:02:54.080 that's when everybody from the holidays gets laid off. But 0:02:54.120 --> 0:02:56.920 we started talking about this whole idea of labor hoarding 0:02:57.000 --> 0:02:58.840 something Tim and I've been talking about a lot with 0:02:58.880 --> 0:03:02.359 our guests. What signs are you seeing of that with 0:03:02.480 --> 0:03:05.720 some of your clients and customers. Yeah, so, Carol, I'll 0:03:05.760 --> 0:03:08.040 say it's gone beyond labor hoarding. Now I'm calling it 0:03:08.160 --> 0:03:12.800 pandemic paranoia. Um, so this overhang from the tight, very 0:03:12.880 --> 0:03:16.560 difficult labor market coming out of the crisis. Employers tried 0:03:16.760 --> 0:03:19.880 very hard to attract and retain workers. It was challenging, 0:03:19.919 --> 0:03:22.919 so they are holding on to their workforce with both hands. 0:03:23.120 --> 0:03:25.200 So that's the first thing. The second thing is we 0:03:25.240 --> 0:03:27.600 see all these headlines around layoffs, but if you put 0:03:27.600 --> 0:03:32.840 it in perspective, in December nine robust economy jobs are growing, 0:03:33.480 --> 0:03:37.680 layoffs for one of the workforce. December twenty nineteen, fast 0:03:37.720 --> 0:03:42.400 forward December layoffs under one percent of the workforce. And 0:03:42.440 --> 0:03:45.840 so even with the headlines, there's some rebalancing that's happening 0:03:45.840 --> 0:03:49.600 for some overhiring, particularly in tech. But make no mistake, 0:03:49.680 --> 0:03:52.560 tech unemployment right now in our country is one point 0:03:52.680 --> 0:03:55.440 eight percent one point eight compared to three point four 0:03:55.560 --> 0:03:59.120 so tech skills are still still in demand. How messy 0:03:59.200 --> 0:04:01.440 is this report messy in the sense of the data 0:04:01.760 --> 0:04:03.720 is going to be revised next month and it won't 0:04:03.760 --> 0:04:06.360 be as big of a jump. Yeah. Well, the revisions 0:04:06.400 --> 0:04:09.080 have all been upwards recently, so that's that was announced 0:04:09.120 --> 0:04:12.280 this morning as well. Um, there's probably some noise tim 0:04:12.320 --> 0:04:14.480 in it. I heard there's some noise around strikes, people 0:04:14.480 --> 0:04:17.760 coming off strike, but it's gonna be hard to adjust 0:04:17.800 --> 0:04:21.240 a half you know, million UM work job creation report 0:04:21.320 --> 0:04:24.400 down too far. Even if it's adjusted, it's still going 0:04:24.440 --> 0:04:27.280 to be a blockbuster report, way above what you know, 0:04:27.320 --> 0:04:30.040 we we anticipated, and I think, um, it will be 0:04:30.080 --> 0:04:33.440 interesting to see now if this is enough again to 0:04:33.520 --> 0:04:37.360 bring workers off the sidelines, particularly in hospitality and leisure. 0:04:37.720 --> 0:04:40.120 You know, another element of of you know, the pandemic 0:04:40.160 --> 0:04:44.320 hangover is we're seeing companies start hiring in advance, in 0:04:44.400 --> 0:04:49.480 advance of actually consumer activity, retail, hospitality and leisure getting 0:04:49.520 --> 0:04:52.039 ready for spring, and then they have a problem because 0:04:52.040 --> 0:04:55.240 they have to attract those workers that left boomerang workers 0:04:55.360 --> 0:04:58.200 back into the sectors that shut down during the crisis. 0:04:58.200 --> 0:05:00.320 So I think it's I think it's going to be 0:05:00.360 --> 0:05:04.000 a noisy path forward. Um. Possibly a little choppy waters, 0:05:04.440 --> 0:05:06.520 but this is an amazing way to start the year. 0:05:06.800 --> 0:05:08.680 One area that has gotten a lot of attention from 0:05:08.800 --> 0:05:10.719 US and from a lot of the business press, of course, 0:05:10.760 --> 0:05:13.000 has been tech layoffs. Over the last few months at 0:05:13.040 --> 0:05:17.080 companies like Meta, thousands of people laid off their alphabet, 0:05:17.160 --> 0:05:22.599 Amazon and more. UM, and I'm wondering if if those 0:05:22.680 --> 0:05:25.920 are how how you look at those in the context 0:05:25.960 --> 0:05:27.920 of of what you're actually seeing when you look at 0:05:27.920 --> 0:05:30.440 the data. Uh. I know, we spent a lot of 0:05:30.440 --> 0:05:32.320 time talking about them, but we don't yet see that 0:05:32.400 --> 0:05:35.039 showing up in the data. Well, I mean, because it 0:05:35.080 --> 0:05:37.600 pales in comparison to how much hiring happened in that sector. 0:05:37.680 --> 0:05:40.480 So it's pandemic hiring. But are those people getting rehired 0:05:40.480 --> 0:05:44.599 easily abs so? I mean again, tech unemployment is one percent, 0:05:44.760 --> 0:05:47.760 so they are getting scooped up either by other you know, 0:05:47.839 --> 0:05:51.560 midsized tech companies, and every company is now a digital 0:05:51.600 --> 0:05:54.240 tech company. So we're seeing people with tech skills hired 0:05:54.279 --> 0:05:57.159 in retail, hired in hospitals. I mean, every company these 0:05:57.160 --> 0:06:01.039 those skills, so they're quickly being reabsorbed into the job market. Hey, Becky, 0:06:01.080 --> 0:06:04.039 I do wonder though, if maybe we're starting to see 0:06:04.040 --> 0:06:07.920 wage pressure subside a little bit. Is that making it 0:06:07.960 --> 0:06:10.800 easier for companies who might not be so sure about 0:06:10.960 --> 0:06:13.560 how the business market plays out this year that they're 0:06:13.600 --> 0:06:16.280 going to say better still to kind of hold on 0:06:16.320 --> 0:06:20.760 to that worker, even if it costs a little bit more. Yeah, So, Carol, 0:06:20.839 --> 0:06:22.719 interesting on the cost a little bit more to hold 0:06:22.760 --> 0:06:25.040 onto because you know, our data would show that if 0:06:25.080 --> 0:06:27.560 you change jobs, and make note the quit rate has 0:06:27.600 --> 0:06:30.760 not gone down in nineteen months below four million a 0:06:30.800 --> 0:06:34.919 month nineteen months, So the American employee is continuing to 0:06:34.960 --> 0:06:37.920 have confidence in their own skill and the labor market. 0:06:38.440 --> 0:06:41.279 But it has been amazing to me to see the 0:06:41.400 --> 0:06:43.720 confidence people having their ability to get pay. If you 0:06:43.800 --> 0:06:46.839 change jobs in the last year, you got, on average, 0:06:46.880 --> 0:06:49.080 and this is average blue collar, white collar, the whole 0:06:49.080 --> 0:06:53.240 spectrument increase in your pay. If you state at your company, 0:06:53.480 --> 0:06:56.240 you got on average a seven percent increase in pay. 0:06:56.279 --> 0:06:59.479 So while we're seeing muting in the overall numbers, actually 0:06:59.560 --> 0:07:01.840 says to Billy, I wouldn't call muting stability at point 0:07:01.839 --> 0:07:06.000 three and overall wages. That we're still encouraging the labor markets, 0:07:06.040 --> 0:07:09.200 encouraging people to change jobs. Is that unusual, that jump 0:07:09.279 --> 0:07:11.160 and that difference. I mean, I would assume that if 0:07:11.160 --> 0:07:13.800 you leave a job, you tend to typically get paid more. 0:07:14.080 --> 0:07:17.160 Just got about twenty seconds. Yeah, what's unusual is the 0:07:17.200 --> 0:07:19.880 fact that we're not saying any slowdown, even with all 0:07:20.000 --> 0:07:23.480 of the coverage on concerns for the future economy, No 0:07:23.560 --> 0:07:25.520 slow down in quits all right. Always great to check 0:07:25.560 --> 0:07:27.960 in with you, Becky, have a great weekend. Becky francoit's 0:07:28.000 --> 0:07:30.840 chief commercial Officer, President North America at Manpower Group, joining 0:07:30.880 --> 0:07:34.040 us via a zoom from Chicago. Quit rate, she said, right, 0:07:34.080 --> 0:07:37.800 hasn't come below four million, and I believe nineteen months. Incredible. Yeah, 0:07:38.040 --> 0:07:40.640 that's interesting with the Jolts data earlier this week, right 0:07:40.640 --> 0:07:42.760 shows the strength of the worker. Um, you are listening 0:07:42.760 --> 0:07:49.120 in watching Bloomberg Business Week right here, I'm fry. This 0:07:49.800 --> 0:07:53.960 is Bloomberg Business Week inside from the reporters and editors 0:07:53.960 --> 0:07:57.560 who bring you America's most trusted business magazine, plus a 0:07:57.720 --> 0:08:02.440 business finance and tech news Bloomberg Business Week Podcast with 0:08:02.520 --> 0:08:07.080 Carol Messer and Tim Stinebec from Bloomberg Radio. Well, the 0:08:07.080 --> 0:08:09.080 new ways too of Bloomberg Business Week. It is out 0:08:09.200 --> 0:08:12.160 on newsstands online at Bloomberg dot com slash business Week. 0:08:12.200 --> 0:08:15.200 Of course, also on the Bloomberg terminal. We talked about 0:08:15.200 --> 0:08:19.000 the domestic cover story yesterday. Well, the international cover story 0:08:19.040 --> 0:08:22.440 is about the billionaire sun coming for w w E 0:08:22.840 --> 0:08:25.600 The Billionaires. Shot Khan you may know him, of course, 0:08:25.720 --> 0:08:29.120 is the owner of the National Football League's Jacksonville Jaguars 0:08:29.280 --> 0:08:32.280 and the English Premier League's Fulham Football Club. The con 0:08:32.280 --> 0:08:34.400 family is not worth, by the way, about seven point 0:08:34.480 --> 0:08:38.000 six billion dollars. The Sun Tony KHN with more on 0:08:38.000 --> 0:08:41.079 the story. Here's Bloomberg reporter Kimbasin. He's with us in 0:08:41.120 --> 0:08:43.800 the Bloomberg Interactive Broker studio. He's got a great beat. 0:08:43.840 --> 0:08:46.880 He covers celebrity and athlete business deals. We also got 0:08:46.920 --> 0:08:49.079 with us the editor of Business Week, Joel Webber, both 0:08:49.120 --> 0:08:52.840 joining us here in New York. So Joel, um, My, 0:08:52.840 --> 0:08:56.080 my big first question is wrestling real? All right? That 0:08:56.160 --> 0:09:01.760 was gonna be my big questions. How about I improve 0:09:02.080 --> 0:09:07.000 upon your questions? It is real, Kim? Is it a 0:09:07.000 --> 0:09:10.640 pro sport? Is it? It's it's a It's a professional 0:09:10.920 --> 0:09:14.479 form of entertainment. That's that's for sure. Like that. Yeah, 0:09:14.520 --> 0:09:17.400 And and what I love about this it's actually a 0:09:17.480 --> 0:09:22.800 huge it's called it Sports Rights business. Right. W w 0:09:23.000 --> 0:09:28.080 E has owned this thing and has consolidated any passed 0:09:28.360 --> 0:09:32.880 for uh, except there's a little bit of turmoil at 0:09:33.000 --> 0:09:37.280 w w E. And along comes an upstart who happens 0:09:37.360 --> 0:09:40.200 to have a little bit of money to throw around. 0:09:40.440 --> 0:09:42.719 How is he competing with w w E. There are 0:09:42.880 --> 0:09:46.480 billions in broadcast rights at stake here and w W 0:09:46.720 --> 0:09:51.320 is going through one of its most volatile periods in history. 0:09:51.440 --> 0:09:54.559 Uh Tony Khan's brand, it's called a e w All 0:09:54.600 --> 0:09:59.520 Elite Wrestling. They're trying to provide fans with an alternatives, 0:09:59.559 --> 0:10:02.880 something that not for lapsed fans who used to watch 0:10:02.880 --> 0:10:05.319 wrestling and then got sick of w W. Give them 0:10:05.400 --> 0:10:09.640 something more, something more, something fresh, something new, something else 0:10:09.679 --> 0:10:12.000 to watch besides the same product that's been on the 0:10:12.040 --> 0:10:13.560 on the air for so long. But part of that 0:10:13.640 --> 0:10:17.280 includes bringing some of the people over from w W E. 0:10:17.480 --> 0:10:19.480 So how is it fresh? How is it new? There's 0:10:19.520 --> 0:10:22.720 been quite a bit of a talent war, so they're 0:10:22.800 --> 0:10:26.280 they're hop scotching back and forth between these these two brands. 0:10:27.120 --> 0:10:30.840 We have them sourcing from the indie scene as well. 0:10:30.920 --> 0:10:34.520 These are like the much smaller little shows that happened. 0:10:34.520 --> 0:10:37.240 There's thousands of wrestlers playing these tiny shows across the 0:10:37.240 --> 0:10:41.480 country in places like you know, bingo halls and nightclubs. 0:10:41.720 --> 0:10:44.040 Now that sounds cool, Yeah it is. I've been to 0:10:44.080 --> 0:10:46.440 a couple of those. It is pretty cool. It's like 0:10:46.480 --> 0:10:49.160 a couple of dozen people just watching, watching them wrestle 0:10:49.240 --> 0:10:50.840 in the ring they set up there. Okay, is this 0:10:50.920 --> 0:10:54.160 like the XFL going after the NFL that that one 0:10:54.200 --> 0:10:59.160 didn't end? Well, I know by the way the new 0:10:59.280 --> 0:11:02.839 XFL maybe they're working with the NFL. But now this 0:11:02.920 --> 0:11:07.360 is uh the most well funded uh person to go 0:11:07.480 --> 0:11:11.640 against w w E in twenty years. So back twenty 0:11:11.720 --> 0:11:15.000 years ago, it was it was Ted Turner and w 0:11:15.160 --> 0:11:18.600 c W the billionaire going against the other billionaire. Now 0:11:18.760 --> 0:11:21.840 this guy, Tony con also has that kind of financial backing. 0:11:21.960 --> 0:11:25.559 Courtesy of Dad courtesy a Dad curs courtesy a shot. Okay, 0:11:26.280 --> 0:11:29.960 you kind of dodge the question here. You've watched a lot. 0:11:30.280 --> 0:11:34.920 Is it a sport that the cons version of this 0:11:35.200 --> 0:11:38.120 elite wrestling? So if I'm gonna go watch all elite wrestling, 0:11:38.400 --> 0:11:40.240 when am I gonna see? That's going to be different 0:11:40.280 --> 0:11:43.880 than w w E. A few big things here, more swearing, 0:11:44.840 --> 0:11:47.240 they will just curse on the microphone. Is more and 0:11:47.240 --> 0:11:51.320 more PG, more blood. There's definitely more violence there, and 0:11:51.679 --> 0:11:54.320 more folding chair shots like right in the back just 0:11:54.480 --> 0:11:58.000 black boom out. These are these are? I mean? So 0:11:58.640 --> 0:12:05.000 there's like actual uh wrestling there. There's definitely more wrestling. 0:12:05.760 --> 0:12:09.360 I heard this anecdote from from one of Vince McMahon 0:12:09.360 --> 0:12:12.600 at ww's former wrestlers. He went by Daniel Bryan there 0:12:12.840 --> 0:12:15.800 and he said that Vince called him up one day 0:12:15.800 --> 0:12:17.920 and was like, what is a E W doing better 0:12:17.960 --> 0:12:21.600 than us? So he spent two weeks watching all the 0:12:21.640 --> 0:12:24.920 a W programming to see what was up, and he 0:12:24.960 --> 0:12:28.360 concluded that a W just has more wrestling. They played, 0:12:28.400 --> 0:12:31.480 they placed more of an emphasis on like the craft 0:12:31.559 --> 0:12:34.920 of the show in the ring. W W has more 0:12:35.240 --> 0:12:38.800 different kinds of segments, a lot more talking. And he said, 0:12:38.960 --> 0:12:41.319 you know, it's like watching a wrestling show with no wrestling. 0:12:42.040 --> 0:12:44.760 How many hours of wrestling did you watch while reporting 0:12:44.760 --> 0:12:48.280 this story? I went to two shows to watch them 0:12:48.400 --> 0:12:53.000 live and backstage and everything. That was fascinating. Uh and yeah, 0:12:53.040 --> 0:12:54.480 a little a little bit more, a little bit more. 0:12:55.280 --> 0:12:59.360 Again he didn't answer, but is there an opportunity right 0:12:59.360 --> 0:13:02.280 when we've seen this before in kind of the corporate world, 0:13:02.360 --> 0:13:04.640 right when one company could be is the leader and 0:13:04.679 --> 0:13:07.400 they run into some trouble, whether it's financial problems or 0:13:07.440 --> 0:13:12.199 whether there's allegations against the CEO for misbehavior, UM and 0:13:12.400 --> 0:13:15.520 w W E is at that point does that provide 0:13:15.679 --> 0:13:18.720 especially since A e W has a pretty dp pockets, 0:13:18.760 --> 0:13:22.440 an opportunity, a real opportunity to move ahead. It says 0:13:22.520 --> 0:13:25.360 there's an inflection point coming up. Both their media rights 0:13:25.360 --> 0:13:28.959 are coming up next year or so, and these are 0:13:28.960 --> 0:13:31.640 going to be the biggest deals ever for the both 0:13:31.679 --> 0:13:34.160 of them. So a bunch of names are being floated 0:13:34.760 --> 0:13:37.400 right now. The battle lines are are WW is with 0:13:37.520 --> 0:13:40.520 NBC Universal, which is on my Comcast, and then the 0:13:40.800 --> 0:13:42.440 A e W is with Turner, which is owned by 0:13:42.520 --> 0:13:46.760 Warner Brothers Discovery. Uh. But then when when these rights 0:13:46.760 --> 0:13:50.200 are up forbidding, that brings in everyone else. We're talking 0:13:50.320 --> 0:13:52.839 you know, Amazon, Netflix, We'll see who's really interested in 0:13:53.080 --> 0:13:56.439 some wrestling programs. And that is ultimately I think one 0:13:56.440 --> 0:13:58.800 of the reason big reasons why I was interested in 0:13:58.840 --> 0:14:01.959 this want to put on international cover is we are 0:14:02.000 --> 0:14:04.319 at a moment where sports rights only go up, right, 0:14:04.440 --> 0:14:07.840 the value of these teams only it's like goes up 0:14:07.840 --> 0:14:10.000 by billions. Really, it's like, oh, it used be three billion. 0:14:11.000 --> 0:14:14.240 The rights are why the billionaires are buying them, right, 0:14:14.320 --> 0:14:16.640 And so if you can keep this off of someone 0:14:16.640 --> 0:14:20.360 else's network and maybe get yourself a buck in the process, 0:14:20.400 --> 0:14:23.960 it's kind of seems like an ingenious strategy, and in 0:14:24.000 --> 0:14:28.040 this case it basically like he concreated something out of nothing, right, um, 0:14:28.080 --> 0:14:32.240 and then goes poaching some talent. Uh so, how how 0:14:32.280 --> 0:14:35.200 does he have to uh, you know, broker, what's it 0:14:35.240 --> 0:14:38.520 gonna look like when this media circus comes to town 0:14:38.600 --> 0:14:40.920 to you know, feast on these rights. That's actually the 0:14:40.960 --> 0:14:43.960 reason he formed it is because he heard from the 0:14:44.320 --> 0:14:46.160 guy who at the time ran T and T and 0:14:46.200 --> 0:14:50.160 TBS that he was about to, you know, consider bidding 0:14:50.920 --> 0:14:52.880 a whole bunch of money, like more than a drellion 0:14:52.880 --> 0:14:55.760 dollars on w W rights for Fridays, and he said, 0:14:55.840 --> 0:14:59.040 you know, maybe there's a better option here. I think 0:14:59.080 --> 0:15:01.360 I feel like there's man those rights ended up going 0:15:01.360 --> 0:15:04.600 to Fox and now T N T and TVs they 0:15:04.640 --> 0:15:09.320 have his his show. I think the big ones here 0:15:09.360 --> 0:15:13.800 are that of Warner Brothers. Discovery is likely going to 0:15:13.880 --> 0:15:16.720 want to keep them, so we'll see how high that goes. 0:15:16.760 --> 0:15:19.600 Speaking of bidding and buying, our Sebastian Escobar, who is 0:15:19.640 --> 0:15:23.160 directing our show right now, reminded us that Tony Khan 0:15:23.280 --> 0:15:26.360 talked about or was considering, right maybe buying w W 0:15:26.560 --> 0:15:29.080 E is that still a possibility. Just got about thirty seconds. 0:15:29.200 --> 0:15:31.080 He will need a little help with that. I don't 0:15:31.120 --> 0:15:32.960 know if he can afford right now? Does dad have 0:15:33.000 --> 0:15:35.800 deep enough pockets? And analysts expect it to be up 0:15:35.800 --> 0:15:43.160 to eight billion dollars, so he would need cool Let's 0:15:43.160 --> 0:15:46.840 pull it up, sell the footballs in there by the 0:15:46.840 --> 0:15:50.160 rest sports or entertainment. Have we decided sports entertainment to 0:15:50.240 --> 0:15:53.080 put together sports entertainment? He's right right, all right? Thank 0:15:53.120 --> 0:15:56.280 you Sbastian. Also bringing it on it, Jill Weber, Editor 0:15:56.360 --> 0:15:59.200 Bloomberg Business Week. Here in our interactive broker studio along 0:15:59.280 --> 0:16:03.520 with campusy Reporter, covering the cool stuff celebrities, athletes, wrestling, 0:16:03.600 --> 0:16:06.720 and more here at Bloomberg News. This is the international 0:16:06.760 --> 0:16:09.960 cover story. Find it on newstands. If you're traveling outside 0:16:09.960 --> 0:16:12.200 the US, you can find it online at Bloomberg dot com. 0:16:12.200 --> 0:16:15.640 Slash business Weekend always on the Bloomberg terminal. This is 0:16:15.680 --> 0:16:21.760 Bloomberg Radio. You're listening to the Bloomberg Business Week podcast. 0:16:22.040 --> 0:16:24.920 Catch us live weekdays from two to five pm Eastern 0:16:25.080 --> 0:16:28.400 on Bloomberg Radio, the Bloomberg Business app band you Doo. 0:16:28.680 --> 0:16:31.760 You can also listen live to our flagship New York station, 0:16:32.200 --> 0:16:36.520 Just say Alexa play Bloomberg e Love and Dirty Well, 0:16:36.960 --> 0:16:40.040 getting a bit of a brakgomblooment today is the tech 0:16:40.120 --> 0:16:42.800 trade because it has been on a tear this week. 0:16:43.480 --> 0:16:45.840 You did have the tech bell Weather's, Apple, Amazon, and 0:16:45.920 --> 0:16:50.040 Alphabet posting results that showed an economic slowdown is throttling 0:16:50.040 --> 0:16:52.760 demand for everything from electronics and e commerce to cloud 0:16:52.760 --> 0:16:54.800 computing and digital advertising. It was a little bit of 0:16:54.840 --> 0:16:58.480 a bummer last night. It really was. Interestingly enough, despite 0:16:58.480 --> 0:17:00.520 the fact that you're seeing on the performance from Alphabet 0:17:00.520 --> 0:17:03.960 in from the Amazon, Apple shares are actually higher. Let's 0:17:03.960 --> 0:17:05.520 try to make sense of it. We got Bloomberg News 0:17:05.520 --> 0:17:08.280 technology reporter David Alba joining us on the phone from 0:17:08.320 --> 0:17:11.320 New York City. David, good to have you with us. UM. 0:17:11.359 --> 0:17:14.119 I want to start with just your big takeaways. How 0:17:14.160 --> 0:17:16.399 we look at this holistically, taken all together. What's the 0:17:16.440 --> 0:17:19.760 story that it tells. I think it tells the story 0:17:19.960 --> 0:17:26.520 that tech companies are not immune from broader economic slowdown. UM. 0:17:26.560 --> 0:17:29.600 You know, tech is usually seen as this industry that 0:17:29.760 --> 0:17:34.040 holds strong throughout um all sorts of ups and downs 0:17:34.080 --> 0:17:37.080 in the economy. But even these giants like Apple and 0:17:37.160 --> 0:17:42.600 Amazon and Alphabet um were hit by by the broader 0:17:42.640 --> 0:17:46.760 economic conditions, and you know, I think that it's pretty significant, 0:17:47.160 --> 0:17:51.120 um that the some of these Apple is was reporting 0:17:51.160 --> 0:17:55.520 the first quarter of um uh, not the sort of 0:17:55.880 --> 0:18:00.520 holiday quarter, but Amazon and Alphabets were and even then, 0:18:00.880 --> 0:18:04.280 you know, when there's usually high demand for products in 0:18:04.400 --> 0:18:07.520 the holiday quarter, that that was not the case this 0:18:07.520 --> 0:18:10.560 this this go round. I think what's interesting too, though 0:18:10.760 --> 0:18:14.600 you know, they were down last night. Apple's up two 0:18:14.600 --> 0:18:18.520 point six percent today. Uh, And we were reminding everybody that, 0:18:18.560 --> 0:18:19.879 you know, you really do want to listen to the 0:18:19.880 --> 0:18:22.080 conference calls and see if we you know, either how 0:18:22.119 --> 0:18:25.119 they try to walk back the quarter or provide some optimism. 0:18:25.359 --> 0:18:28.359 But it's not like they fell off a cliff either. 0:18:28.480 --> 0:18:31.399 Google is still down about three point six percent, and 0:18:31.640 --> 0:18:34.840 Amazon and mental check on the trade it is down well, 0:18:35.080 --> 0:18:38.840 Amazon's down nine So that's pretty severe. Um. I don't know, 0:18:38.960 --> 0:18:40.840 is there a net net in terms of what we 0:18:40.880 --> 0:18:44.040 got from the three of them? Yeah, I mean I 0:18:44.080 --> 0:18:48.120 think yesterday we saw you know, the company executive sort 0:18:48.160 --> 0:18:53.080 of giving out the excuses that you know that for 0:18:53.200 --> 0:18:56.720 their businesses performance. You know, Apple talked a lot about 0:18:57.400 --> 0:19:01.280 how because of the strength of the dollar and sort 0:19:01.280 --> 0:19:05.760 of their supply chain issues UM, which are global those 0:19:05.800 --> 0:19:11.000 were impacted UM alphabet UM, you know, sort of talked 0:19:11.040 --> 0:19:16.600 about UM how economic headwinds were impacting the business, UM 0:19:16.640 --> 0:19:19.920 as its search products, of maturing and it it really 0:19:19.960 --> 0:19:25.360 tries to spin things forward, emphasizing their AI products and 0:19:25.359 --> 0:19:28.000 and talking about what's to come. But I think another 0:19:28.040 --> 0:19:32.400 piece of context here is that these companies are sort 0:19:32.440 --> 0:19:38.320 of down relative to the year ago period, which was 0:19:38.760 --> 0:19:42.159 when everyone was sort of you know, still in the 0:19:42.240 --> 0:19:45.440 middle of the pandemic. There was like flush demand at 0:19:45.440 --> 0:19:49.360 that time, and all of these companies were flying really high, 0:19:49.480 --> 0:19:52.920 and so comparing it to this time one year ago, 0:19:53.080 --> 0:19:56.680 I think is is kind of a tough comparison when 0:19:56.680 --> 0:19:58.760 you when you think about it that way. Yeah, that's 0:19:58.760 --> 0:20:01.240 a really good point. Um, Davey, I'm not in trouble 0:20:01.280 --> 0:20:04.359 making sense of Apple today. It was I'm going to 0:20:04.400 --> 0:20:06.800 read what Mark Irman wrote on the live blog here, okay, 0:20:06.840 --> 0:20:09.479 because this is like, you know, Mark knows a thing 0:20:09.520 --> 0:20:12.879 or two about Apple. Apple had an overall miserable quarter. 0:20:13.000 --> 0:20:15.600 Revenue dropped five percent year over year, including declines for 0:20:15.640 --> 0:20:18.760 the iPhone, Mac wearable's, home and accessories. The miss Wall 0:20:18.760 --> 0:20:23.000 Street estimates for those categories along with overall revenue. Uh 0:20:23.160 --> 0:20:27.000 yet shares up two points six right now, that's resiliency. 0:20:27.040 --> 0:20:31.679 What's going on. I think it just speaks to Apple's 0:20:31.760 --> 0:20:35.800 reputation as a company that you know, for all intense, 0:20:35.960 --> 0:20:41.119 like basically it's just so in the mainstream, um wild 0:20:41.240 --> 0:20:44.920 demand was not exactly you know, sort of what they 0:20:44.960 --> 0:20:50.320 wanted in in the last few months. It's something that 0:20:50.400 --> 0:20:53.960 they can sort of be picking up. And I think 0:20:54.000 --> 0:20:57.040 that the stock market knows that Apple is just a 0:20:57.160 --> 0:21:00.879 very strong company and so we're seeing sort of the 0:21:00.960 --> 0:21:04.840 effects of that. Now. Yeah, it's interesting. Um, I'm thinking 0:21:04.840 --> 0:21:10.720 about the nasdac man the pop up, you know, yeah, 0:21:10.880 --> 0:21:14.320 the new nasdack Uh, Kathy would call it, which is 0:21:14.400 --> 0:21:16.800 kind of interesting, right, And I mean, I don't know, 0:21:17.000 --> 0:21:20.199 how do you you know, Davy, It brings up a 0:21:20.240 --> 0:21:23.560 good point him because Kathy does look forward to who 0:21:23.600 --> 0:21:25.520 will be kind of the next players that will be 0:21:25.600 --> 0:21:28.800 very dominant in some of the developing technologies. And it 0:21:28.840 --> 0:21:32.159 does make me think about you know, Apple, Google, met up, 0:21:32.160 --> 0:21:34.320 met is going through its own transformation. They got a 0:21:34.320 --> 0:21:36.960 big pop this week, but you know, time will tell 0:21:37.000 --> 0:21:39.240 whether this bet really makes sense. I'm trying to pull 0:21:39.240 --> 0:21:41.320 this up on the go ahead, David, I was trying 0:21:41.320 --> 0:21:43.000 to pull this up on the terminal, and I think 0:21:43.040 --> 0:21:44.199 probably you and I are going to go to the 0:21:44.200 --> 0:21:48.200 same place, which is the comments from UH from Alphabet, 0:21:48.240 --> 0:21:54.399 from Google CEO, Alphabet CEO Sunder. Yeah about AI. You know, 0:21:54.520 --> 0:21:57.520 I think there are a few things here, UM half 0:21:57.640 --> 0:22:00.880 companies for better or worse or obviously at the cutting 0:22:01.040 --> 0:22:05.080 edge of you know, sort of developments that underpin businesses 0:22:05.680 --> 0:22:09.280 moving forward. And you know UH Sun Dark, which I 0:22:09.320 --> 0:22:13.639 talked a lot about. Alphabet's UM commitment to AI so 0:22:13.800 --> 0:22:17.440 much so that they're actually breaking out Deep Mind, which 0:22:17.520 --> 0:22:21.160