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Speaker 1: Surveillance Podcast. Catch us live weekdays at seven am Eastern
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Speaker 2: Joining us right now for a brief I believe she
Speaker 2: isn't shut down right now, She's started to trace data questions.
Speaker 2: Joined us as well in the blur of all this,
Speaker 2: in the articles, the rumors, the gossip, Henrietta, what are
Speaker 2: you focused on today?
Speaker 3: Coome Oneing guys, I really am focused on the two senators,
Speaker 3: Leader thone and Leader Schumer. The reality is, of all
Speaker 3: the operators in DC right now, they're the only ones
Speaker 3: that actually have the physical requirement to be Bipartisanan's going
Speaker 3: to anywhere between ten and twenty Democratic votes to keep
Speaker 3: his chamber open and the government open. And I think
Speaker 3: that means those two are the most important people in
Speaker 3: the room.
Speaker 4: I look forward to them getting together at some point.
Speaker 2: The Shoomer have the Democrats behind him or does they
Speaker 2: need to watch us back?
Speaker 3: I mean, to the extent that Democrats can line up
Speaker 3: behind anybody. Right now, I think Schumer is moving forward
Speaker 3: knowing that we're he to divert course and just cave
Speaker 3: right now.
Speaker 4: That would be disastrous.
Speaker 3: So the base of the party is pushing him towards
Speaker 3: his shutdown. Same especially with the House side. There's a
Speaker 3: real disparity between House and Senate staff right now, where
Speaker 3: House members are gung ho on a shutdown and the
Speaker 3: Senators are more hopeful that we can keep things open.
Speaker 3: But that's the usual dynamic. The House is a more
Speaker 3: rebel rouse sea bunch.
Speaker 5: Your odds right now are seventy percent that the government
Speaker 5: will shut down in midnight September thirtieth. If that happens, Henriette,
Speaker 5: is it worth ascribing blamed one party? Does any party care?
Speaker 4: I think that will play the blame game.
Speaker 3: You can see the polling shows that Republicans are going
Speaker 3: to blame Democrats, Diesel blame ours.
Speaker 4: Independents are relatively split.
Speaker 3: But the bottom line is the majority party is the
Speaker 3: Republican Conference. They own the House, the Senate, and the
Speaker 3: White House. So shutting down is going to require bipartisanship.
Speaker 3: Out of the Senate, that means that the senators are
Speaker 3: the ones that are most important.
Speaker 4: I think Democrats are.
Speaker 3: Going to be really upset unless they get some sort
Speaker 3: of a concession. And this time Schumer's illustrating that they're
Speaker 3: not going to fold the way that they usually do,
Speaker 3: and they're deciding that healthcare subsidies are really the fight
Speaker 3: to stand on right now. What's interesting to me is
Speaker 3: that they're not migrating to any of the broader issues
Speaker 3: with the Trump administration, especially the one that's most impactful
Speaker 3: in polling data to the American public, which is opposition
Speaker 3: to the tariffs, that is widespread inflation prices, the economy,
Speaker 3: or where Trump is now polling materially underwater, which is
Speaker 3: a face from his election win. And I think that's
Speaker 3: something that the Democratic Party could very easily seize upon.
Speaker 3: But they're not doing that. They're focusing solely on healthcare.
Speaker 5: So if we get a shutdown, is there expectation how
Speaker 5: long it may last? Is this going to be something
Speaker 5: that people are going to really feel?
Speaker 4: Yeah, that's a good question, I would say.
Speaker 3: As a former staffer, I know that you get paid
Speaker 3: every other Friday, and so there is a seven hundred
Speaker 3: and fifty thousand person furlough announcement that's going to go
Speaker 3: out and a lot of those folks are paid every
Speaker 3: other Friday, so it might sound trite, but for a
Speaker 3: lot of these members, these are there individual staffers, and
Speaker 3: if they're going to miss a pace cycle on Friday,
Speaker 3: October tenth, that becomes a problem, especially Saturday, Sunday, Monday,
Speaker 3: when they've now gone three days without a pay stump.
Speaker 3: And we're not high paid workers up on the hills.
Speaker 3: So it's not just those guys, it's people across the country.
Speaker 4: You know, it's national Henry.
Speaker 2: This came up this weekend. Let me just ask it,
Speaker 2: with great respect for your encyclopedic knowledge of Capital Hill.
Speaker 2: Are we running a parliamentary government? Is it really? Prime
Speaker 2: Minister Trump?
Speaker 3: Yeah, I mean I think the president we if and
Speaker 3: when we shut down. The difference here is that he
Speaker 3: has demonstrated a clear willingness to use his authority to
Speaker 3: any extreme that he can come up with, and Russ
Speaker 3: Bott is reportedly having the time of his life right now.
Speaker 3: I think the shutdown, the fact that Congress has ceded
Speaker 3: control and authority over taxation is wild. And indeed, the
Speaker 3: Trump administration even made the argument to the Supreme Court
Speaker 3: recently that by not voting to repeal the president's International
Speaker 3: Economic Emergency power tariffs. They were actually giving him the
Speaker 3: authority to tariff or to tax the American public and
Speaker 3: correct me if I'm wrong, but I'm pretty sure we
Speaker 3: fought the British over this one.
Speaker 2: Phil.
Speaker 6: Yeah.
Speaker 2: Yeah, it started in Brooklyn andreetta give us some sense
Speaker 2: of admirals and generals flying in to meet, and I
Speaker 2: guess now the President is going to show up as well,
Speaker 2: discuss it.
Speaker 3: Seems like a pretty good campaign video to me.
Speaker 4: My understanding is that it's going to be recorded.
Speaker 3: It's going to be you know, workshops, photoshopped, photop set out.
Speaker 2: I saw one report that said it's a photo app.
Speaker 2: You agree with that? Yes, all right, I guess this
Speaker 2: is I feel like angry beaversa Nickelodeon. This is nuts.
Speaker 2: This is not a trace. Thank you so much, greatly
Speaker 2: appreciate it. Stay with us. More from Bloomberg Surveillance coming
Speaker 2: up after this.
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Speaker 2: Conversation of the Day for those clipping coupons, James karen Cio,
Speaker 2: process of solutions, More Stanley. Okay, you walk in, you say, hey, stupid,
Speaker 2: look at the five year total return on bonds. I
Speaker 2: took a big index like bond fun flat. But if
Speaker 2: you come in even three years you get a legit
Speaker 2: six point eight percent total return. Where we're going to
Speaker 2: be in twelve months if the marketing machine of Wall Street,
Speaker 2: not including Morgan Stanley, is going to be saying, OMG,
Speaker 2: bonds are great, do we need to get out in
Speaker 2: front of that?
Speaker 6: Bonds have always been great.
Speaker 7: So the coupon on bonds today, what people talk about
Speaker 7: as the all in yield, is actually reasonably decent today.
Speaker 7: So you're getting about an investment grade credit. You're getting
Speaker 7: about a five little bit more than a five percent yield.
Speaker 7: If you put a portfolio together correctly, and if you
Speaker 7: pick the right bonds, you might actually get a little
Speaker 7: bit of total return on top of that. You could
Speaker 7: be getting somewhere around six percent returns. What's wrong with that?
Speaker 7: In the investment grade credit space?
Speaker 2: Right?
Speaker 7: If you add some high yield to that, you can
Speaker 7: even get a little bit more.
Speaker 2: So.
Speaker 7: The bottom line is is that we do think that
Speaker 7: default risks are going to be relatively low because we
Speaker 7: do not have a very strong view for a recession.
Speaker 7: We think recesion probabilities are low, so we're happy to
Speaker 7: clip the all in coupon yield. But people will argue
Speaker 7: that spreads are very tight, and they're right.
Speaker 5: Spreads are tight, but they've been tight for a while here,
Speaker 5: and the best performer in US fixed to come has
Speaker 5: been US high yield. So what does that say about
Speaker 5: I guess the markets wanting to take that credit risk.
Speaker 7: So I always like to say that just because spreads
Speaker 7: are tight is not a reason for them to widen.
Speaker 7: There has to be a catalyst for these spreads to widen.
Speaker 7: Spreads are going to naturally tighten as long as there's
Speaker 7: not some bad news or recession or some geopolitical event
Speaker 7: that comes through into the markets. But just because they're tight,
Speaker 7: they can stay tight for a long period of time,
Speaker 7: and I think sometimes that's what people mistake.
Speaker 2: If they're tight, the yield of caring garbage to the
Speaker 2: full faith in credit US can the US yields come down,
Speaker 2: so that spreads indirectly widen.
Speaker 6: So we would think that both happen at the same time.
Speaker 6: As us.
Speaker 7: They both come down, right, So I don't think there's
Speaker 7: a lot more room for spreads to tighten. And when
Speaker 7: we say spreads tightening, what we're meaning is that you're
Speaker 7: getting the additional.
Speaker 6: Total return out of your corporate.
Speaker 7: Bonds relative to US treasuries, what we call the excess return.
Speaker 7: We think that both are going to come down together.
Speaker 7: So I think within fixed income, what you're looking to
Speaker 7: get is the coupon these.
Speaker 5: Days, Federal Reserve they cut rates once here, how do
Speaker 5: you think the cadence is going to be here going
Speaker 5: forward for them?
Speaker 6: So I think it's two more times this year. January
Speaker 6: is a possibility.
Speaker 7: I think we end with the Fed funds policy rate
Speaker 7: upper end of the band at three and a half percent.
Speaker 7: I think there are a couple of things going on.
Speaker 7: It's beyond just an insurance cut for labor. I think
Speaker 7: some of it too, is also to address liquidity concerns
Speaker 7: and the balance sheet.
Speaker 6: The Fed's balance.
Speaker 7: Sheet through quantitative tightening has been coming down quite a bit.
Speaker 7: It's about six point six trillion right now, which is
Speaker 7: low relative in the past few years. The overnight repo
Speaker 7: rates are actually starting to come up, go up in
Speaker 7: price because bank reserves are starting to falter a bit,
Speaker 7: so if there is a shock event to the markets,
Speaker 7: you need to have these overnight rates lower. And I
Speaker 7: think that's partially the story here as well, not just
Speaker 7: the labor market.
Speaker 5: Jim, what are your team, What are you guys seeing
Speaker 5: in terms of best value out there? Where do you
Speaker 5: see some value out there?
Speaker 6: So within the fixed income space, we've been tilted.
Speaker 2: York bets that.
Speaker 7: Within the fixed income space, we've been looking primarily at
Speaker 7: the high yield space and also bank loans. So bank
Speaker 7: loans are it's almost like floating rate high yield, and
Speaker 7: in some ways it's a shorter term reset on that.
Speaker 6: What I would say is that despite the fact that.
Speaker 7: We think rates are coming down, we think that short
Speaker 7: term high yield credit bank loans in particular actually have
Speaker 7: more room to appreciate in price value over time as
Speaker 7: default risks stay relatively low.
Speaker 6: A lot of people like yield.
Speaker 7: We do too, but we also like the bank loan debt,
Speaker 7: and we also like to barbel that by owning some
Speaker 7: short term, high quality government bonds too.
Speaker 2: I don't want to get you in trouble, but there's
Speaker 2: just so much respect from Karen for your application of
Speaker 2: physics to our coupon market. Jim Karen on private credit
Speaker 2: in the liquidity premium, help me here with the lock
Speaker 2: up that's going on in private equity and particularly your
Speaker 2: world private credit.
Speaker 7: Yeah, so in the private credit space, this has been
Speaker 7: an area that's become i'd say a lot more democratized,
Speaker 7: so a lot more entrants have come in. So we
Speaker 7: have a lot of you know, non bank players in
Speaker 7: the markets right now trying to accumulate a lot of
Speaker 7: these assets to basically create funds so that people can
Speaker 7: invest in these things. This has created a bit of
Speaker 7: an overcrowding in that space, like.
Speaker 2: A bit of a two thousand and five over time.
Speaker 7: I wouldn't necessarily say a two thousand and five overcrowding,
Speaker 7: but it is basically the valuations I think at this
Speaker 7: point are getting a little bit stretched. So you do
Speaker 7: have to be very specific and very particular, and be
Speaker 7: very picky about what you're putting into your private credit portfolios.
Speaker 2: If your people, the Rocket scient is working with you,
Speaker 2: they are a lot of kel tech. He only hires that. Well,
Speaker 2: Harvey Muddy's got some token Harvey mud guys is well,
Speaker 2: good morning, West Coast listening early early morning. So you
Speaker 2: do a trench analysis. I'm going to go to David
Speaker 2: Goldbin the Giant Bank of America years ago on the
Speaker 2: private credit tranches. Is the risk the garbage or is
Speaker 2: the real risk the premium tranches where they come down
Speaker 2: five points.
Speaker 7: So it's a really good question because you get the
Speaker 7: yield by owning the lower quality credit stuff what.
Speaker 6: You refer to as garbage.
Speaker 7: It's French and it's French, but you also need to
Speaker 7: balance that with some of the higher the higher quality
Speaker 7: credit stuff is actually really good. I mean that's actually
Speaker 7: very very solid. So you are taking the risk on
Speaker 7: the lower quality credit, but you're not going to get
Speaker 7: the yield that's attractive for people to.
Speaker 6: Buy unless you have some of that.
Speaker 7: So it's really about managing that portfolio and doing the
Speaker 7: bottoms up analysis on every individual company that you're putting in.
Speaker 7: So private credit is a broad term, but per manager,
Speaker 7: per fund, that's what we have to talk about, and
Speaker 7: that's what we have to be very very idiosyncratic when
Speaker 7: we think about this.
Speaker 2: Jim Keron, thank you so much. She's the Mortgan Stanley
Speaker 2: investment process of solutions. With some terse comments there, stay
Speaker 2: with us. More from Bloomberg Surveillance coming up after this.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Applecarplay and Android Auto
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Speaker 1: say Alexa play Bloomberg eleven thirty work out Asina.
Speaker 2: Joins us right now, It's real she could be with
Speaker 2: us today on this booming equity market. Laurie, lots of
Speaker 2: back and forth here as you write for RBC Capital Markets.
Speaker 2: What is the distinction of the debate right now on
Speaker 2: owning equities?
Speaker 8: Well, thanks for having me, Tom. Look, I think that
Speaker 8: you know, I probably have the best color for you
Speaker 8: this morning from what folks in the UK are thinking.
Speaker 8: That's where I spent last week, and there was, you know,
Speaker 8: sort of a discussion about funds flows, right and if
Speaker 8: you want to sort of fade the US, where do
Speaker 8: you go? And what I told folks was that if
Speaker 8: you look at the EPFR data, what we're seeing verily
Speaker 8: clearly is that there's kind of a lack of conviction
Speaker 8: on what the alternatives are. So whether you're looking at
Speaker 8: Latin or China or Japan or even Europe. Frankly, you've
Speaker 8: had all these sort of attempts for flows to turn
Speaker 8: positive and then they tend to peter out. The European
Speaker 8: ones and the German ones lasted longer than everything else.
Speaker 8: What's funny to me, too, is if you look at
Speaker 8: the global x US category that's had the best flows
Speaker 8: this year, over the last no SA six months or so,
Speaker 8: but even that looks like it's starting to fade.
Speaker 9: So what we see is just sort of a real.
Speaker 8: Kind of lack of lack of conviction on exactly where
Speaker 8: to focus geographically.
Speaker 5: So that trade we saw in early in the year
Speaker 5: to rest of world has that in fact faded?
Speaker 9: Do you think?
Speaker 2: So?
Speaker 8: If you look, we have one chart in our weekly
Speaker 8: and we tend to put the weekly out on Mondays,
Speaker 8: and we look at US relative to non US on
Speaker 8: the MSCI data, and it's just been tracking, you know,
Speaker 8: sort of sideways over the last few months. There's been
Speaker 8: a little bit of strength in the US recently, you know.
Speaker 8: I think what's interesting is that global x US trade,
Speaker 8: even there, the flows have been faltering. I mean, it's
Speaker 8: a time of year when seasonally equities tend to be weak,
Speaker 8: and we actually did a seasonality of fundslow data earlier
Speaker 8: this year, and you tend to see the flows fade
Speaker 8: at this point as well. So maybe this is just
Speaker 8: a market frankly that's getting a little bit tired.
Speaker 5: Our friends in the UK and London, are they concerned
Speaker 5: about valuations here in this US market? Yeah?
Speaker 8: That would I would say, you know, the number one
Speaker 8: question that I felt like I heard from people is
Speaker 8: just kind of what's sentiment like in the US. People
Speaker 8: just kind of wanted to know what investors are thinking
Speaker 8: over here, and you know, kind of how that compared.
Speaker 8: By the end of the week. I got a good
Speaker 8: sense of that, which is the UK investors seemed to
Speaker 8: be a bit more cautious than the US investors. But
Speaker 8: I would say number one issue people were proactively bringing
Speaker 8: up was valuation.
Speaker 2: And you know, my.
Speaker 8: UK clients are are fantastic macro thinker, so this is
Speaker 8: not a knock on them. But there was kind of
Speaker 8: no one specific thing beyond that that they were pointing at.
Speaker 8: It was just things seem really elevated, things seem really high.
Speaker 8: Was kind of how the conversation started.
Speaker 5: Are there certain sectors that when you go over to
Speaker 5: the UK or that your clients want to speak about,
Speaker 5: whether it's tech or financials or healthy. I mean, is
Speaker 5: there certain sectors they want to focus on?
Speaker 8: You know, It's funny, Paul, usually financials, but I can't
Speaker 8: even remember one meeting where the client's proactively brought it up.
Speaker 8: You know, I think I took it there eventually because
Speaker 8: it's a sector I like. Normally, I would say, as
Speaker 8: a general rule, it's always tech, it's always consumer, and
Speaker 8: healthcare often tends to be in focus as well. I
Speaker 8: think for technology, you know, it just has to do
Speaker 8: with where the global opportunity set sits, so that's a
Speaker 8: big part of it. Obviously tech is a big sort
Speaker 8: of workhourse, but healthcare was really in focus.
Speaker 2: Lest I do to be sure I'm talking from a
Speaker 2: technical analyst standpoint, is a fundamental type? What is your
Speaker 2: setup where you say I have to get off this
Speaker 2: bull market? Is it's not fed chat? I'm pretty negative
Speaker 2: on that. Is it like earnings? Miss?
Speaker 8: I think earnings is huge, you know, I do think
Speaker 8: if you related to earnings is the fundamental economic backdrop.
Speaker 8: Whereas if you look at you know, that's a feeder, right,
Speaker 8: revenues really matter a great deal for earning.
Speaker 2: There's a second time. Let's stop there. This is the
Speaker 2: second time we've heard this in like six days. How
Speaker 2: do you analyze revenue dynamics? Starting with JP Moregan October fourteenth.
Speaker 8: So you know, I can't say on that company specifically,
Speaker 8: but when I do sort of my modeling, Tom and
Speaker 8: in my earnings model, the revenue line is very much
Speaker 8: a quant driven model. So we have kind of five
Speaker 8: different components, and with revenues, the two most impactful macro
Speaker 8: variables are GDP and CPI, and so we're looking at
Speaker 8: real GDP and then CPI. We break them out separately,
Speaker 8: and both of the if you take the assumptions up,
Speaker 8: it's going to goose your revenue number.
Speaker 2: I mean, I can't emphasize, folks, which you just heard there,
Speaker 2: how important it is. This goes back to Tom Gelvin
Speaker 2: and DLJ, and I'm sure Tom would say people before him,
Speaker 2: but revenue It's one of the first things I did
Speaker 2: when I came to Bloomberg. Revenue analysis is really important.
Speaker 2: Susie Welcher that essay in the Wall Street Journal or
Speaker 2: her former husband, Jack Welch, was brilliant on unit price
Speaker 2: dynamics of revenue, Paul.
Speaker 5: So, Laurie, Tom and I've been talking about it this morning.
Speaker 5: We might have a government shutdown tomorrow night at twelve
Speaker 5: oh one am.
Speaker 6: What does that mean historically for market?
Speaker 8: So it's interesting. I did run over the weekend. I
Speaker 8: looked at the betting market data on I think it's
Speaker 8: WSL predict that you guys all run, and it's this
Speaker 8: great little widget. You know, you can go and see
Speaker 8: what betting markets are pricing on all these you know,
Speaker 8: kind of stock market sensitive issues. And I noticed that
Speaker 8: the betting market data was starting to reflect higher probability
Speaker 8: of a shut down last week, right around when the
Speaker 8: market was wobbling. Now, I don't want you to over
Speaker 8: extrapolate there. I didn't get a single question from clients
Speaker 8: on it last week. I got a question from one trader,
Speaker 8: and some of us macro folks at RBC have been
Speaker 8: writing about it right because it is in the headlines
Speaker 8: a bit. This is a really, really tough thing to
Speaker 8: analyze and parse out exactly how it's impacted stocks in
Speaker 8: the past. If you just look at when the days
Speaker 8: when the government's actually been shut and what stocks have
Speaker 8: done the two words you want to remembered are mixed
Speaker 8: and mild. In the seventies they tended to go down
Speaker 8: more recently up, but it's been very mild overall.
Speaker 2: Laurie, thank you so much, greatly appreciate it. You the
Speaker 2: Herod's in London.
Speaker 8: I didn't make it there, no fun. I was just
Speaker 8: working the whole time and went to sleep early.
Speaker 2: I've done that. There's like key throw hotel work, no
Speaker 2: hotel U key throw lub and they go, how was London?
Speaker 2: What did you love? And I'm like, you threw hotel work?
Speaker 8: The client lunches were the highlight because then I actually
Speaker 8: got to have you know, local food.
Speaker 2: Your full engless breakfast. Come on.
Speaker 8: No, my hotel had a nice buffet though, but I
Speaker 8: had I had peas at lunch and I had some
Speaker 8: somefish and chaw.
Speaker 2: You have a smash it with your knife, yeah, Lurri Kelvison,
Speaker 2: thank you so much, greatly appreciate it. With RBC stay
Speaker 2: with us, more from Bloomberg Surveillance coming up after this.
Speaker 1: This is the Bloomberg Surveillance podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Apple, Cocklay and Android
Speaker 1: Auto with the Bloomberg Business App. You can also watch
Speaker 1: us live every weekday on YouTube and always on the
Speaker 1: Bloomberg terminal.
Speaker 2: The newspapers, Lisa Matayo, what do you have? This one least?
Speaker 9: Okay?
Speaker 10: This one's in the Wall Street Journal has to look
Speaker 10: into credit markets, which it says is running hot. But
Speaker 10: they're saying that some on Wall Streets say it's too hot.
Speaker 10: I mean, this is something you've talked with a lot
Speaker 10: of guests on the show about. They say, Wall Streets
Speaker 10: on edge. Any bad news is kind of touching a nerve.
Speaker 10: They gave the example of kind of what's triggering some
Speaker 10: conversations around bond investors, analysts. They talked about the two
Speaker 10: set in bankruptcys.
Speaker 9: And the auto world. Do you have one of a
Speaker 9: lender the other auto parts supplier.
Speaker 10: They say, so far, there's no sign of this bigger fallout,
Speaker 10: but when you combine that with other challenges like versus
Speaker 10: in inflation, rising defaults and credit and private credit which
Speaker 10: is a huge it's kind of making them take a
Speaker 10: step back.
Speaker 9: So it has this whole look into it.
Speaker 5: But the new issue market is they're just ripping the
Speaker 5: last few weeks, companies raising capital all over the place.
Speaker 5: So I think, I think, if you're a good credit,
Speaker 5: I mean at the market, we get the first.
Speaker 2: Brand's news over the weekend, which you know, I'm not
Speaker 2: at the speed on. But nevertheless, there's these little to
Speaker 2: Lisa's point, these little little data points, little data points
Speaker 2: dat next week.
Speaker 10: Okay, So Hollywood studios, right, they know the power of
Speaker 10: online creative creators. We've heard different stories about that, but
Speaker 10: Bloomberg screen Time they actually take a look into why
Speaker 10: only a few of them on YouTube? These creators are
Speaker 10: really having success raising money, selling projects for streaming services.
Speaker 9: Yeah, lukas Shaw. So he kind of gets into it.
Speaker 10: I mean, you have like Amazon, Netflix, Disney, Dave's License
Speaker 10: shows that live on YouTube, like Miss Rachel and Coco Mellon.
Speaker 10: But there's there's some creators who are just having a
Speaker 10: hard time.
Speaker 9: So he kind of digs into it.
Speaker 10: He's saying, there's this this disconnect between traditional financial institutions,
Speaker 10: this new breed of digital media companies. All a few
Speaker 10: YouTube channels, they build companies with real scale. He says,
Speaker 10: a lot of times it's problems with valuation and that's
Speaker 10: why they can't get the money they need. But it
Speaker 10: was this really kind of deep dive into it as
Speaker 10: to why they can't you know, us.
Speaker 5: Sell it's interesting. I mean, I mean Lucas wrote this
Speaker 5: Bloomberg BusinessWeek cover story last week about mister Beast. Yeah,
Speaker 5: the biggest YouTube star in the world. It gets more
Speaker 5: than two hundred and fifty million views on every video,
Speaker 5: but his company lost more than a one hundred million
Speaker 5: dollars last year.
Speaker 6: So yeah, I don't know.
Speaker 10: His show did lost a lot of money, but I
Speaker 10: don't know how that all works exactly. That's kind of
Speaker 10: what it gets into, which is pretty interesting. And then
Speaker 10: finally we have some big news here in Times Square.
Speaker 10: Something big is coming. It's not the casino, No, you
Speaker 10: know that's not happening. It's Laboo Boo owner Pop Marty
Speaker 10: is coming to Times Square. Yes, this is according to
Speaker 10: the New York Posts.
Speaker 2: So instead of the ball coming down, New Year's.
Speaker 10: Head a ten year lease for seven thousand square foot
Speaker 10: store fifteen forty the Broadway store. Yeah, Broadway in forty fourth,
Speaker 10: expected to open twenty twenty six in the second half.
Speaker 9: But it's it's a big building.
Speaker 10: Disney stores in there forever twenty one US Polo associations
Speaker 10: in there.
Speaker 9: So it's just.
Speaker 10: Going to show how big this brand is becoming.
Speaker 2: Are all the dolls creepy or or can there be
Speaker 2: nice la boo boo?
Speaker 10: They're all kind of like creepy, like little monster toothy dolls.
Speaker 10: But the celebrities love them and that's what makes the
Speaker 10: kids want to get them.
Speaker 9: And they've been they go on. They very expensive bags.
Speaker 2: So yes, we had one floating around the house. Vent
Speaker 2: Bill was chewing on it.
Speaker 9: There's a worth a lot of money.
Speaker 2: There's still like going. I mean, they're still popular and
Speaker 2: all that.
Speaker 10: They're still I mean they pushed you know, pop marks.
Speaker 10: They searched twentyure and thirteen percent this year over twenty
Speaker 10: twenty four, so it's a big, big push for them.
Speaker 10: They started to slow back a little, but I mean,
Speaker 10: if a store comes to Times Square, people are gonna come.
Speaker 2: Lisa Montereya, thanks so much. It is a newspaper. It's
Speaker 2: hugely popular.
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