1 00:00:02,520 --> 00:00:13,760 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg 2 00:00:13,840 --> 00:00:17,920 Speaker 1: Surveillance Podcast. Catch us live weekdays at seven am Eastern 3 00:00:18,200 --> 00:00:21,240 Speaker 1: on Apple car Play or Android Auto with the Bloomberg 4 00:00:21,320 --> 00:00:24,880 Speaker 1: Business app. Listen on demand wherever you get your podcasts, 5 00:00:25,280 --> 00:00:27,040 Speaker 1: or watch us live on YouTube. 6 00:00:27,200 --> 00:00:29,080 Speaker 2: One of the things we're going to do is talk 7 00:00:29,080 --> 00:00:33,360 Speaker 2: about retirement planning. Marta Norton is exquisite out of Chicago. 8 00:00:33,760 --> 00:00:34,639 Speaker 3: She's with Empower. 9 00:00:34,720 --> 00:00:38,080 Speaker 2: I should say that Empower handles the retirement programs of 10 00:00:38,080 --> 00:00:38,800 Speaker 2: Bloomberg LP. 11 00:00:40,680 --> 00:00:42,760 Speaker 3: Do you know I have a retirement program, so. 12 00:00:42,920 --> 00:00:45,080 Speaker 4: I can't retire now, just keeping training. 13 00:00:45,520 --> 00:00:47,680 Speaker 2: I've been in the triple leveraged all cash fund with 14 00:00:47,760 --> 00:00:51,440 Speaker 2: Empower forever, joining us Marta and Norton. Marta, I read 15 00:00:51,520 --> 00:00:53,680 Speaker 2: your research note and then I look at the retirement 16 00:00:53,680 --> 00:00:57,200 Speaker 2: planning of Empower and Empower saying, you know what, if 17 00:00:57,200 --> 00:01:01,520 Speaker 2: you really believe in equities, front load you retirement contribution 18 00:01:02,080 --> 00:01:02,640 Speaker 2: this year. 19 00:01:03,040 --> 00:01:05,120 Speaker 3: Is that a good strategy for you? Are you so 20 00:01:05,560 --> 00:01:06,920 Speaker 3: bullish that. 21 00:01:08,319 --> 00:01:10,959 Speaker 2: You want to tell people, don't do your retirement contribution 22 00:01:11,040 --> 00:01:14,240 Speaker 2: over twelve months, load the boat the first ninety days. 23 00:01:14,880 --> 00:01:17,240 Speaker 5: Of course, the argument for doing that is that then 24 00:01:17,280 --> 00:01:20,360 Speaker 5: you capture with your contribution all the gains over the 25 00:01:20,400 --> 00:01:22,560 Speaker 5: course of the year. And I think when we take 26 00:01:22,600 --> 00:01:25,759 Speaker 5: a look at what to expect in twenty twenty six, 27 00:01:26,280 --> 00:01:29,360 Speaker 5: a lot of the bulk case comes down to what 28 00:01:29,400 --> 00:01:32,319 Speaker 5: we expect from earnings, and that relates, of course to 29 00:01:32,360 --> 00:01:36,440 Speaker 5: the mag seven, which are expected to deliver something along 30 00:01:36,480 --> 00:01:38,479 Speaker 5: the lines of what we saw in twenty twenty five. 31 00:01:38,880 --> 00:01:42,279 Speaker 5: But then also this broadening out story for the broader market, 32 00:01:42,319 --> 00:01:44,360 Speaker 5: So to the extent that we do see that come 33 00:01:44,400 --> 00:01:48,840 Speaker 5: to fruition, that can be a benefit of front loading 34 00:01:48,840 --> 00:01:51,000 Speaker 5: that contribution. But what I would also add is if 35 00:01:51,000 --> 00:01:53,680 Speaker 5: you're expecting a year of volatility, which is I think 36 00:01:53,760 --> 00:01:56,760 Speaker 5: something that we could anticipate with the AI narrative and 37 00:01:56,800 --> 00:01:59,600 Speaker 5: the moments of doubt that occur with that, taking advantage 38 00:01:59,600 --> 00:02:02,480 Speaker 5: of the utility dollar cost averaging in that can also 39 00:02:02,520 --> 00:02:03,640 Speaker 5: be a viable path. 40 00:02:03,680 --> 00:02:06,279 Speaker 6: So you have two good choices there, Marty. 41 00:02:06,680 --> 00:02:09,720 Speaker 7: Do we have a rotation going on maybe late last 42 00:02:09,800 --> 00:02:11,640 Speaker 7: year in this market or is it still going to 43 00:02:11,639 --> 00:02:13,480 Speaker 7: be an AI driven twenty twenty six. 44 00:02:14,280 --> 00:02:15,160 Speaker 6: Yeah, this is what. 45 00:02:15,280 --> 00:02:17,880 Speaker 5: I am wrestling with a great deal, and I think 46 00:02:17,919 --> 00:02:20,240 Speaker 5: there are two major arguments that people are pointing to 47 00:02:20,360 --> 00:02:23,800 Speaker 5: when they talk about this rotation away from tech, away 48 00:02:23,800 --> 00:02:27,160 Speaker 5: from AI, they point to valuations and they point to earnings. 49 00:02:27,200 --> 00:02:30,520 Speaker 5: I think that second second argument is a lot stronger 50 00:02:30,560 --> 00:02:31,600 Speaker 5: than the first argument. 51 00:02:31,639 --> 00:02:33,600 Speaker 6: When we look at valuations, we're. 52 00:02:33,480 --> 00:02:36,600 Speaker 5: Not just looking at them relative sector to one another. 53 00:02:36,720 --> 00:02:38,920 Speaker 5: We're looking at them relative to their own history. And 54 00:02:38,960 --> 00:02:41,200 Speaker 5: on that count, I would actually argue that some of 55 00:02:41,240 --> 00:02:43,840 Speaker 5: the mag seven have gotten a bit cheaper. And when 56 00:02:43,880 --> 00:02:48,800 Speaker 5: we look outside that subset, if you're looking at consumer staples, 57 00:02:48,840 --> 00:02:51,600 Speaker 5: if you're looking at utilities, if you're looking at some 58 00:02:51,639 --> 00:02:54,359 Speaker 5: of these other areas of the market, they're actually pretty pricey. 59 00:02:58,080 --> 00:03:00,600 Speaker 7: Are more important than ever one could argue. So we 60 00:03:00,680 --> 00:03:02,600 Speaker 7: had some really good earnings in twenty twenty five, you 61 00:03:02,600 --> 00:03:05,840 Speaker 7: expect earnings to continue strong enough in twenty six to 62 00:03:05,880 --> 00:03:06,760 Speaker 7: support this market. 63 00:03:08,040 --> 00:03:10,679 Speaker 5: I think that is a reasonable expectation. I think there's 64 00:03:10,720 --> 00:03:15,360 Speaker 5: a few things that are coming to head there on 65 00:03:15,400 --> 00:03:18,280 Speaker 5: the AI front. I think we can continue to see 66 00:03:18,280 --> 00:03:20,800 Speaker 5: some of that momentum from the MAG seven, from the 67 00:03:20,840 --> 00:03:24,000 Speaker 5: AI names. I think when we're looking at the broader market, 68 00:03:24,160 --> 00:03:26,480 Speaker 5: you have a few tail wins to take advantage of. 69 00:03:26,560 --> 00:03:30,120 Speaker 5: You have the fiscal stimulus, you have the monetary stimulus. 70 00:03:30,560 --> 00:03:32,040 Speaker 6: You have what some folks are. 71 00:03:31,919 --> 00:03:35,360 Speaker 5: Expecting to be kind of the incremental implementation of AI. 72 00:03:35,760 --> 00:03:37,640 Speaker 5: This one i'm a little bit more allier of. I 73 00:03:37,680 --> 00:03:40,200 Speaker 5: think it will take more time to really see a 74 00:03:40,280 --> 00:03:43,920 Speaker 5: massive earnings boost from AI implementation, but maybe on the 75 00:03:43,960 --> 00:03:46,680 Speaker 5: margin that's another benefit. So I guess as much as 76 00:03:46,720 --> 00:03:49,440 Speaker 5: I want to be skeptical on the earnings front, I 77 00:03:49,440 --> 00:03:52,880 Speaker 5: think it's hard to find a really negative case to 78 00:03:52,880 --> 00:03:55,800 Speaker 5: look at from a corporate earnings perspective, Marta. 79 00:03:55,840 --> 00:03:58,800 Speaker 2: The retirement planning game, going back to the risk of 80 00:03:58,880 --> 00:04:04,120 Speaker 2: nineteen seventy four or has been really difficult for a 81 00:04:04,160 --> 00:04:07,119 Speaker 2: lot of people. How many people, I mean, within all 82 00:04:07,120 --> 00:04:10,920 Speaker 2: the expertise of empower and all the macroeconomics and the 83 00:04:11,000 --> 00:04:14,320 Speaker 2: calls that you're making, how many people are behind? What 84 00:04:14,520 --> 00:04:18,719 Speaker 2: percentage of America is behind in their retirement. 85 00:04:19,520 --> 00:04:22,640 Speaker 5: Well, there's a few different ways to look at this. 86 00:04:22,760 --> 00:04:26,400 Speaker 5: When we take a look at access to retirement portfolios, 87 00:04:26,440 --> 00:04:29,560 Speaker 5: that access has improved meaningfully. I think there's numbers that 88 00:04:29,600 --> 00:04:33,920 Speaker 5: show of the private companies out there, we have about seventy. 89 00:04:33,560 --> 00:04:35,279 Speaker 3: Percent offering for one case. 90 00:04:35,640 --> 00:04:40,200 Speaker 5: When we look at the actual contributions, we're are seeing 91 00:04:40,240 --> 00:04:43,640 Speaker 5: decent savings rates. So experts recommend somewhere between twelve and 92 00:04:43,680 --> 00:04:46,680 Speaker 5: fifteen percent saving for retirement. When we look at what 93 00:04:46,800 --> 00:04:50,080 Speaker 5: numbers we saw in twenty twenty five, we see numbers 94 00:04:50,120 --> 00:04:52,920 Speaker 5: that kind of rival that level. I think the big 95 00:04:53,000 --> 00:04:55,800 Speaker 5: question is making sure that folks are engaged. When people 96 00:04:55,880 --> 00:04:58,719 Speaker 5: get engaged with our retirement accounts, when they're paying attention, 97 00:04:59,240 --> 00:05:01,560 Speaker 5: that's when you start to see the contributions take up. 98 00:05:01,839 --> 00:05:04,440 Speaker 5: When they're doing auto and roll features, when they're doing 99 00:05:04,480 --> 00:05:06,880 Speaker 5: auto escalate features, that's when you start to see real 100 00:05:06,920 --> 00:05:10,400 Speaker 5: improved outcomes for retirement. And there's still agains to be 101 00:05:10,440 --> 00:05:10,880 Speaker 5: made there. 102 00:05:11,080 --> 00:05:13,359 Speaker 3: What is an auto escalator feature? 103 00:05:14,360 --> 00:05:19,440 Speaker 5: So the idea that every year your contribution automatically increases, 104 00:05:19,520 --> 00:05:21,039 Speaker 5: so you don't have to go in and make an 105 00:05:21,120 --> 00:05:24,840 Speaker 5: active decision. You press a button and that occurs automatically 106 00:05:24,920 --> 00:05:25,200 Speaker 5: for you. 107 00:05:25,600 --> 00:05:26,960 Speaker 4: Nice should try that. 108 00:05:27,120 --> 00:05:29,640 Speaker 7: I don't know if I have that act great app 109 00:05:29,720 --> 00:05:32,479 Speaker 7: by the way and empower Oh good, yeah, it works 110 00:05:32,520 --> 00:05:32,719 Speaker 7: for me. 111 00:05:33,080 --> 00:05:33,960 Speaker 4: I know what I'm doing. 112 00:05:34,560 --> 00:05:37,839 Speaker 7: So for how about the younger folks? Are the younger 113 00:05:37,880 --> 00:05:41,320 Speaker 7: folks saving and entering. 114 00:05:41,160 --> 00:05:43,280 Speaker 4: Into opting into four to one k's. 115 00:05:43,000 --> 00:05:45,480 Speaker 7: And savings plans at a rate we'd like to see 116 00:05:45,560 --> 00:05:47,159 Speaker 7: how's it look for the younger folks. 117 00:05:48,279 --> 00:05:51,080 Speaker 5: So when we look at account balances, we're seeing, say, 118 00:05:51,120 --> 00:05:53,919 Speaker 5: if you're in your twenties, you're seeing an account balance 119 00:05:53,960 --> 00:05:57,120 Speaker 5: of somewhere around one hundred thousand. If you're looking later 120 00:05:57,160 --> 00:05:59,920 Speaker 5: in life, you're seeing account balances of somewhere around six hundred. 121 00:06:00,680 --> 00:06:03,359 Speaker 5: So we are seeing engagement from the younger folks. I 122 00:06:03,360 --> 00:06:06,479 Speaker 5: think this is always something that requires a lot of 123 00:06:06,640 --> 00:06:10,360 Speaker 5: education with workforces. When folks are entering the workforce, maybe 124 00:06:10,400 --> 00:06:13,280 Speaker 5: they're working on that Robinhood account, but they're not necessarily 125 00:06:13,320 --> 00:06:15,960 Speaker 5: thinking out decades and what retirement could look like. So 126 00:06:16,040 --> 00:06:20,120 Speaker 5: making sure that companies are engaging with their employees and 127 00:06:20,200 --> 00:06:22,680 Speaker 5: making the case because that's of course. You know what 128 00:06:22,720 --> 00:06:26,840 Speaker 5: Warren Buffett talks about compounding being a snowball rolling down 129 00:06:26,839 --> 00:06:29,560 Speaker 5: a hill. It can have such a profound impact on 130 00:06:29,640 --> 00:06:30,960 Speaker 5: people's ultimate outcomes. 131 00:06:31,040 --> 00:06:34,919 Speaker 2: Well, mister Buffet and mister Bunger also talk about don't 132 00:06:34,960 --> 00:06:35,920 Speaker 2: over diversify. 133 00:06:36,080 --> 00:06:38,520 Speaker 3: What's a trend you see it in power? 134 00:06:38,839 --> 00:06:42,280 Speaker 2: Given the macroeconomics, given a three year or four year 135 00:06:42,360 --> 00:06:46,080 Speaker 2: equity post COVID boom, are we too diversified? Are we 136 00:06:46,120 --> 00:06:49,359 Speaker 2: in too many fancy things other than doing basic, block 137 00:06:49,400 --> 00:06:50,800 Speaker 2: and tackle investing. 138 00:06:51,920 --> 00:06:54,479 Speaker 5: Yeah, I think at this point what we're seeing is 139 00:06:54,560 --> 00:06:58,039 Speaker 5: still I mean in terms of asset classes. When you 140 00:06:58,080 --> 00:07:00,640 Speaker 5: look at managed accounts for example, which is you know, 141 00:07:00,800 --> 00:07:03,320 Speaker 5: a single solution that has a range of asset classes 142 00:07:03,360 --> 00:07:05,600 Speaker 5: within it and investors make one choice to move into 143 00:07:05,600 --> 00:07:10,640 Speaker 5: that portfolio, you do see a pretty ample spread across 144 00:07:11,240 --> 00:07:16,440 Speaker 5: US non US fixed income. It's not overly exotic, and 145 00:07:16,600 --> 00:07:18,440 Speaker 5: you have seen a real benefit And I think this 146 00:07:18,600 --> 00:07:20,920 Speaker 5: was one of the things that came into question last year. 147 00:07:21,400 --> 00:07:24,360 Speaker 5: Does something like the sixty forty deliver and you did 148 00:07:24,400 --> 00:07:27,280 Speaker 5: see a real benefit from that style of investing, So 149 00:07:27,320 --> 00:07:29,280 Speaker 5: at least kind of spreading beyond the S and P 150 00:07:29,400 --> 00:07:32,200 Speaker 5: five hundred, I think that is something that we've seen 151 00:07:32,280 --> 00:07:35,640 Speaker 5: some value to Now. Now whether every single NICHE asset 152 00:07:35,680 --> 00:07:39,000 Speaker 5: class adds value to the same degree, that's another question. 153 00:07:38,840 --> 00:07:39,720 Speaker 3: Marta, Thank you so much. 154 00:07:39,760 --> 00:07:44,520 Speaker 2: More Empower Stay with us more from Bloomberg Surveillance coming 155 00:07:44,600 --> 00:07:45,560 Speaker 2: up after this. 156 00:07:52,840 --> 00:07:56,400 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us Live 157 00:07:56,480 --> 00:07:59,880 Speaker 1: weekday afternoons from seven to ten am Eastern Listen on app, 158 00:08:00,080 --> 00:08:03,360 Speaker 1: CarPlay and Android Otto with the Bloomberg Business Up, or 159 00:08:03,520 --> 00:08:05,000 Speaker 1: watch us live on YouTube. 160 00:08:05,080 --> 00:08:07,280 Speaker 3: This is a special moment for Bloomberg Surveillance. 161 00:08:07,320 --> 00:08:11,040 Speaker 2: We'd love to see our guests over the years have 162 00:08:11,160 --> 00:08:12,160 Speaker 2: a conviction. 163 00:08:12,120 --> 00:08:14,960 Speaker 3: Have a belief. Sometimes they're wrong. Has Dan and Ives 164 00:08:14,960 --> 00:08:15,600 Speaker 3: ever been wrong? 165 00:08:15,840 --> 00:08:16,360 Speaker 4: Oh? 166 00:08:16,560 --> 00:08:18,200 Speaker 2: You know, I thought you think there was a a 167 00:08:18,560 --> 00:08:21,920 Speaker 2: while back there. But he's been right enough where today 168 00:08:22,320 --> 00:08:26,000 Speaker 2: he will do something very cool. I've enjoyed this wonderful 169 00:08:26,040 --> 00:08:29,880 Speaker 2: privilege to sit with Ken Pruitt and wants Charlie Pellett 170 00:08:30,200 --> 00:08:33,360 Speaker 2: ring the bell of the New York Stock Exchange. Mister Ives, 171 00:08:33,760 --> 00:08:36,280 Speaker 2: I believe will open trading of the New York Stock 172 00:08:36,320 --> 00:08:41,760 Speaker 2: Exchange today and celebration of the success of the ives 173 00:08:41,880 --> 00:08:43,200 Speaker 2: ETF It's brought. 174 00:08:43,000 --> 00:08:47,360 Speaker 3: In a few few do balloons over the recent weeks. 175 00:08:47,440 --> 00:08:50,320 Speaker 2: Dan Ives joins us from Wedbush and celebration of nine 176 00:08:50,320 --> 00:08:53,000 Speaker 2: point thirty and this morning, Dan, what does it feel 177 00:08:53,080 --> 00:08:55,920 Speaker 2: like to join Snoop Dogg and kiss with the I 178 00:08:55,920 --> 00:08:57,000 Speaker 2: don't know his his? 179 00:08:58,160 --> 00:09:00,679 Speaker 3: You know? To these fancy people on the bell? What 180 00:09:00,760 --> 00:09:02,319 Speaker 3: are you going to dress appropriately? 181 00:09:03,280 --> 00:09:05,760 Speaker 8: I mean, I'm look I addressed appropriately? 182 00:09:05,920 --> 00:09:07,960 Speaker 9: Look I mean to look You're It's part of history, 183 00:09:08,040 --> 00:09:11,120 Speaker 9: right h What the New York Stock Machines represents in 184 00:09:11,240 --> 00:09:14,320 Speaker 9: terms of those walls and obviously the success that we've 185 00:09:14,360 --> 00:09:17,240 Speaker 9: had with odds, it's not just me, it's you know, 186 00:09:17,320 --> 00:09:19,880 Speaker 9: it's the team, but it's the broad belief that investments 187 00:09:19,920 --> 00:09:22,880 Speaker 9: have had in us in this AI revolution. So it's 188 00:09:22,920 --> 00:09:25,240 Speaker 9: so exciting to be a part of history this morning. 189 00:09:25,440 --> 00:09:29,400 Speaker 3: Is your ETF actively managed? Is it passive? 190 00:09:29,760 --> 00:09:33,360 Speaker 2: Has there been a strategic IVES call that's brought in 191 00:09:33,640 --> 00:09:34,520 Speaker 2: a few dollars? 192 00:09:35,480 --> 00:09:35,760 Speaker 3: Yeah? 193 00:09:35,800 --> 00:09:37,480 Speaker 8: Look, I mean this is all based on the ives 194 00:09:37,559 --> 00:09:39,000 Speaker 8: AI thirty, which is. 195 00:09:39,000 --> 00:09:41,720 Speaker 9: Our you know, these are our AI thirty, are thirty 196 00:09:41,720 --> 00:09:45,040 Speaker 9: winners in the AI Revolution, all based on our research 197 00:09:45,160 --> 00:09:48,080 Speaker 9: four times a year. You know, we basically switch in 198 00:09:48,160 --> 00:09:51,520 Speaker 9: out who I believe is more relevant less relevant. And 199 00:09:51,640 --> 00:09:54,160 Speaker 9: you know, the last six months and getting to a billion, 200 00:09:54,840 --> 00:09:59,160 Speaker 9: it's been I think a validation as investors are trying 201 00:09:59,200 --> 00:10:02,640 Speaker 9: to find how do you play the AI Revolution? 202 00:10:02,840 --> 00:10:06,360 Speaker 8: And I'm happy about the comblems and on and. 203 00:10:06,360 --> 00:10:08,560 Speaker 7: Just for you know, for this fund here the top 204 00:10:08,600 --> 00:10:10,960 Speaker 7: fund holdings is the names that Dan's been talking about 205 00:10:10,960 --> 00:10:16,040 Speaker 7: for a long time in video, Micron Technologies, Taiwan Semiconductor, Amazon, Alphabet, Microsoft, 206 00:10:16,080 --> 00:10:18,680 Speaker 7: So the names that Dan's been recommending for a long time. 207 00:10:18,920 --> 00:10:19,960 Speaker 4: Dan speaking of AI. 208 00:10:20,120 --> 00:10:23,280 Speaker 7: We know you just returned from Las Vegas the Consumer 209 00:10:23,320 --> 00:10:28,160 Speaker 7: Electronics Show. I'm hearing a lot about physical AI. I 210 00:10:28,200 --> 00:10:32,360 Speaker 7: heard that from mister Wang Jensen Wong at Uh in video. 211 00:10:32,679 --> 00:10:35,280 Speaker 7: What is physical AI and what are the opportunities there? 212 00:10:36,000 --> 00:10:39,600 Speaker 9: Yeah, look, well physical AI, it's really about autonomous robotic. 213 00:10:39,840 --> 00:10:41,400 Speaker 8: I mean this is now. 214 00:10:41,679 --> 00:10:45,000 Speaker 9: What I view is the consumer AI revolution starts in 215 00:10:45,080 --> 00:10:47,800 Speaker 9: terms of physical app and I think what you saw 216 00:10:47,840 --> 00:10:50,359 Speaker 9: with in video, they're weighing out and to end's platform 217 00:10:50,440 --> 00:10:53,280 Speaker 9: on autonomous We've talked about It's why we're so bulletr 218 00:10:53,280 --> 00:10:57,840 Speaker 9: and Tatsa, even robotaxes and the autonomous sort of vision there. 219 00:10:58,240 --> 00:11:01,640 Speaker 9: But this is this is the next stiege of AI. 220 00:11:02,080 --> 00:11:05,679 Speaker 9: But it's all fueled by the godfather of AI Jensen 221 00:11:05,760 --> 00:11:06,240 Speaker 9: the video. 222 00:11:07,800 --> 00:11:11,600 Speaker 2: I look Dan and Wells Fargo reducing their overweight. They 223 00:11:11,679 --> 00:11:15,280 Speaker 2: stay overweight on Microsoft from whatever it was down to 224 00:11:15,320 --> 00:11:20,800 Speaker 2: six sixty five down the income statement into the earning season. 225 00:11:20,960 --> 00:11:23,800 Speaker 2: Dan eyes with you with a six twenty five outperformer 226 00:11:23,840 --> 00:11:28,640 Speaker 2: in Microsoft. Where and the financial statements is the important 227 00:11:28,679 --> 00:11:31,719 Speaker 2: point for Microsoft earnings? 228 00:11:31,960 --> 00:11:34,720 Speaker 9: I mean, I think it's about Azure and cloud and growth. 229 00:11:34,960 --> 00:11:37,839 Speaker 9: I had to put in the context. I mean, you're 230 00:11:37,840 --> 00:11:41,560 Speaker 9: talking about the highest margin business that I believe the 231 00:11:41,600 --> 00:11:45,240 Speaker 9: streets under estimating probably by ten to fifteen percent this year. 232 00:11:45,679 --> 00:11:48,480 Speaker 9: And you're talking about I think the streets all the 233 00:11:48,920 --> 00:11:53,560 Speaker 9: underestimating about twenty five billion of incremental growth from a 234 00:11:53,640 --> 00:11:58,319 Speaker 9: cash book perspective, we're talking about fifteen billion that. 235 00:11:58,120 --> 00:12:01,400 Speaker 8: I don't think is factor industry models from Microsoft. 236 00:12:01,120 --> 00:12:04,640 Speaker 2: Right, Well, they're modeling fifteen percent revenue growth. So are 237 00:12:04,640 --> 00:12:09,599 Speaker 2: you saying down the income statement is the underestimation of Microsoft? 238 00:12:10,559 --> 00:12:13,600 Speaker 9: Yeah, I think I think it's underestimated from a growth 239 00:12:13,640 --> 00:12:17,120 Speaker 9: perstructive on cloud, underestimated in terms that we say on 240 00:12:17,240 --> 00:12:17,880 Speaker 9: cask FOWK. 241 00:12:18,040 --> 00:12:20,880 Speaker 8: And the reality is the enterprise AI revolution. 242 00:12:21,040 --> 00:12:24,080 Speaker 9: It all starts in Redmond and Thedella, and industry is 243 00:12:24,240 --> 00:12:26,680 Speaker 9: underestimating what this means from Microsoft. 244 00:12:28,120 --> 00:12:28,280 Speaker 4: Dan. 245 00:12:28,360 --> 00:12:30,959 Speaker 7: One of the things I heard from cees and and 246 00:12:31,120 --> 00:12:35,800 Speaker 7: Video they launched this Alpha Mayo platform. Tell us what 247 00:12:35,920 --> 00:12:38,280 Speaker 7: this is because this gets a little scary for some people. 248 00:12:38,320 --> 00:12:40,719 Speaker 9: I think, Yeah, I mean, like you could say it's 249 00:12:40,800 --> 00:12:45,800 Speaker 9: reasoning or really AI needs autonomous. It's an end to 250 00:12:45,920 --> 00:12:50,880 Speaker 9: end platform that in Video is basically laying out as 251 00:12:51,040 --> 00:12:56,880 Speaker 9: their answer for autonomous. It's really something that ultimately better 252 00:12:56,960 --> 00:13:01,280 Speaker 9: than the human driver. And I view it is just 253 00:13:01,400 --> 00:13:04,480 Speaker 9: like what Taska was doing on robo taxes, just like 254 00:13:04,559 --> 00:13:07,400 Speaker 9: what we're seeing on autonomous Nvidia is going to be 255 00:13:07,440 --> 00:13:10,679 Speaker 9: a supplier from a chip perspective, but also they're. 256 00:13:10,520 --> 00:13:12,760 Speaker 8: Going to play an ant end platform play as well. 257 00:13:13,120 --> 00:13:16,360 Speaker 2: Dan ives with us this morning with webbush a celebration, 258 00:13:16,520 --> 00:13:19,320 Speaker 2: and just under one hour he will stand at the 259 00:13:19,360 --> 00:13:23,160 Speaker 2: New York Stock Exchange with his wonderful etf It's really 260 00:13:23,160 --> 00:13:25,600 Speaker 2: done well, and the vectors from his garbman would say 261 00:13:25,840 --> 00:13:28,319 Speaker 2: from the lower left to the upper right as. 262 00:13:28,120 --> 00:13:30,840 Speaker 3: Well, Dan, I want to switch to Apple. I was 263 00:13:30,880 --> 00:13:32,680 Speaker 3: just in Paris and I'd never been. 264 00:13:32,559 --> 00:13:36,040 Speaker 2: To the Tuileries, to the Museum Rangerie it's called, which 265 00:13:36,080 --> 00:13:40,840 Speaker 2: is the those lovely simple quiet Monet paintings of the 266 00:13:40,880 --> 00:13:46,160 Speaker 2: water lilies, sterile quiet, and I witnessed their dan Ives 267 00:13:46,160 --> 00:13:51,120 Speaker 2: and I thought of you packed tourists, many many from 268 00:13:51,120 --> 00:13:57,199 Speaker 2: the Pacific Rim, holding Apple iPhones in their hands, taking photos, 269 00:13:57,240 --> 00:14:01,560 Speaker 2: taking selfies, doing YouTube bes stuff in front of the 270 00:14:01,679 --> 00:14:05,480 Speaker 2: quiet of Claude Monet of eighteen ninety, his gift to the. 271 00:14:05,480 --> 00:14:07,520 Speaker 3: Nation at World War One. 272 00:14:08,120 --> 00:14:12,679 Speaker 2: Explain Dan Ives, what I witnessed where are we in 273 00:14:12,960 --> 00:14:16,920 Speaker 2: five years with the use of the iPhone. 274 00:14:17,480 --> 00:14:19,840 Speaker 9: Look, and I think it's all about the AI coming 275 00:14:20,320 --> 00:14:21,600 Speaker 9: to the Apple ecosystem. 276 00:14:21,640 --> 00:14:23,000 Speaker 8: We talk about this is going to be the year 277 00:14:23,120 --> 00:14:24,200 Speaker 8: AI for Apple. 278 00:14:24,720 --> 00:14:27,240 Speaker 9: I mean, to my what one point five billion iPhones 279 00:14:27,240 --> 00:14:31,080 Speaker 9: in the world, I mean two point four billion iOS devices. 280 00:14:31,200 --> 00:14:34,720 Speaker 9: It's about you when you look at this next stage 281 00:14:34,720 --> 00:14:36,920 Speaker 9: for Apple, it's going to be the most important stage 282 00:14:37,080 --> 00:14:40,200 Speaker 9: I think, going to the AI revolution and they monetize 283 00:14:40,280 --> 00:14:41,479 Speaker 9: that install based. 284 00:14:41,200 --> 00:14:42,680 Speaker 8: That's going to be front and summer. 285 00:14:43,120 --> 00:14:46,840 Speaker 9: And it's why one of our top picks and in 286 00:14:46,840 --> 00:14:50,040 Speaker 9: my opinion, underestimated in terms of what the error that 287 00:14:50,080 --> 00:14:52,200 Speaker 9: they're hitting when it comes to AI. 288 00:14:52,960 --> 00:14:53,160 Speaker 4: Dan. 289 00:14:53,200 --> 00:14:55,840 Speaker 7: I know, we kind of knew the CS was going 290 00:14:55,880 --> 00:14:59,360 Speaker 7: to be all AI centric here as you talk to investors, 291 00:14:59,600 --> 00:15:02,840 Speaker 7: are you don't say any AI fatigue that maybe it's 292 00:15:02,880 --> 00:15:06,800 Speaker 7: played out, or boy, it's it's hard to handle these valuations, 293 00:15:06,920 --> 00:15:09,520 Speaker 7: or boy, their numbers are getting so big. What's the 294 00:15:09,560 --> 00:15:11,160 Speaker 7: conversations you're having with clients. 295 00:15:10,880 --> 00:15:15,320 Speaker 9: About Yeah, well, I think when you you know the 296 00:15:15,400 --> 00:15:17,800 Speaker 9: time we spend there with Nvideo and Jensen and on 297 00:15:17,840 --> 00:15:20,160 Speaker 9: the floor, you cannot come away within that. 298 00:15:20,240 --> 00:15:21,960 Speaker 8: There's an AI bubble I. 299 00:15:21,920 --> 00:15:23,960 Speaker 9: Mean we're still in the early days of play now 300 00:15:24,040 --> 00:15:27,280 Speaker 9: because you see what's happening on embedded devices on the 301 00:15:27,360 --> 00:15:31,080 Speaker 9: chip releases obviously releasage to AMD and others, and I 302 00:15:31,080 --> 00:15:33,960 Speaker 9: think it's not the tig. I think investors are starting 303 00:15:34,000 --> 00:15:37,280 Speaker 9: to realize that this next stage of the AI revolution 304 00:15:37,440 --> 00:15:38,080 Speaker 9: is now taken. 305 00:15:38,120 --> 00:15:41,720 Speaker 3: Hold Dan, help me here with this. 306 00:15:41,880 --> 00:15:46,960 Speaker 2: Paul mentioned cees. Where do the smaller AI companies fit in? 307 00:15:47,280 --> 00:15:49,400 Speaker 2: Are we going to like perplexity, Are we going to 308 00:15:49,440 --> 00:15:51,760 Speaker 2: see M and A this year for all of these 309 00:15:51,880 --> 00:15:54,920 Speaker 2: names that Claude and the rest that I don't understand. 310 00:15:55,240 --> 00:15:57,320 Speaker 3: Are we going to see an AI roll up? 311 00:15:58,760 --> 00:16:00,680 Speaker 9: I think you're gonna see a lot of acts, positions, 312 00:16:00,880 --> 00:16:06,160 Speaker 9: strategic financial acquisitions in terms of tech, which about robotics, 313 00:16:06,160 --> 00:16:08,760 Speaker 9: that's one of our favorite era games. I've still serve 314 00:16:08,920 --> 00:16:12,680 Speaker 9: robotics is in a good example. Looking the reality is 315 00:16:12,920 --> 00:16:15,360 Speaker 9: that it's an arms race that's playing out. It's gonna 316 00:16:15,360 --> 00:16:18,400 Speaker 9: be a lot of acquisitions, a lot of consolidation, and 317 00:16:18,480 --> 00:16:22,040 Speaker 9: I think that's why it's just going to be year 318 00:16:22,200 --> 00:16:24,600 Speaker 9: three of an eight to ten year build out of 319 00:16:24,680 --> 00:16:25,640 Speaker 9: the revolution. 320 00:16:26,320 --> 00:16:28,400 Speaker 2: When did you get into tech stocks, Like, were you 321 00:16:28,440 --> 00:16:30,920 Speaker 2: sitting in the student union. I've sat in the student 322 00:16:31,080 --> 00:16:33,720 Speaker 2: union at Penn State. Were you out at State College 323 00:16:33,720 --> 00:16:37,120 Speaker 2: one day and the lights shone down? Dan Eisener's was epiphany, 324 00:16:37,360 --> 00:16:39,320 Speaker 2: wear bright clothes and followed tech. 325 00:16:40,800 --> 00:16:42,720 Speaker 9: I think, look, I mean, obviously it started in my 326 00:16:42,880 --> 00:16:44,800 Speaker 9: Penn and State days. I have a lot of tend 327 00:16:44,880 --> 00:16:47,360 Speaker 9: standers here at the at the bell ring it. But 328 00:16:47,400 --> 00:16:49,640 Speaker 9: I think to me, it was really in the late 329 00:16:49,720 --> 00:16:54,440 Speaker 9: nineties starting to cover Internet. It was the recognition that 330 00:16:54,560 --> 00:16:57,320 Speaker 9: it was going to be the start of what's really 331 00:16:57,320 --> 00:16:59,480 Speaker 9: going to be a forty to fifty year tech buildout. 332 00:16:59,480 --> 00:17:01,760 Speaker 9: And I think what we're seeing today is just the 333 00:17:01,800 --> 00:17:02,800 Speaker 9: next stage of that. 334 00:17:03,240 --> 00:17:05,000 Speaker 8: It started in State College. 335 00:17:05,080 --> 00:17:09,800 Speaker 9: And obviously, you know, I'm super happy that investors have 336 00:17:09,840 --> 00:17:11,880 Speaker 9: to have supported me along the journeys. 337 00:17:12,720 --> 00:17:16,679 Speaker 7: Dan, So what's the uh, what's the key issue pushback 338 00:17:16,760 --> 00:17:18,800 Speaker 7: if any from your clients these days? 339 00:17:18,880 --> 00:17:19,600 Speaker 4: Is it valuation? 340 00:17:19,960 --> 00:17:23,760 Speaker 7: Is it just I'm just I've made my money, I'm 341 00:17:23,800 --> 00:17:24,800 Speaker 7: taking it off the table here? 342 00:17:24,800 --> 00:17:25,560 Speaker 4: What's the pushback? 343 00:17:26,200 --> 00:17:26,400 Speaker 8: Yeah? 344 00:17:26,400 --> 00:17:30,840 Speaker 9: I think evaluations, circuit of financing. Is there a two 345 00:17:30,840 --> 00:17:33,440 Speaker 9: big defail moment open the eye and I think news 346 00:17:33,480 --> 00:17:37,199 Speaker 9: are in the US try to trade negotiations parents, but 347 00:17:37,280 --> 00:17:40,360 Speaker 9: look to me, it's like we'll have these white knuckle moments. 348 00:17:40,359 --> 00:17:42,399 Speaker 9: But I said, I think techtocks are up twenty percent 349 00:17:42,520 --> 00:17:47,000 Speaker 9: this year, but it's as wegin earning season in January 350 00:17:47,040 --> 00:17:49,600 Speaker 9: and you get more into cap backs and get more 351 00:17:50,040 --> 00:17:51,439 Speaker 9: I think that's going to be the key to this 352 00:17:51,520 --> 00:17:52,280 Speaker 9: next stage. 353 00:17:52,480 --> 00:17:53,960 Speaker 3: Are the tech broke? I'm going to ask a Paul 354 00:17:54,000 --> 00:17:56,560 Speaker 3: Sweetey question. We got to go Dan, Are the tech. 355 00:17:56,320 --> 00:17:59,360 Speaker 2: Broken to grow up and finally develop dividends and dividend 356 00:17:59,359 --> 00:18:01,320 Speaker 2: growth height? 357 00:18:01,400 --> 00:18:03,200 Speaker 9: Look, I mean a bench, but I don't think now 358 00:18:03,280 --> 00:18:05,720 Speaker 9: because you want to focus on investments, right, and I 359 00:18:05,760 --> 00:18:09,400 Speaker 9: think that to me, this is an arms race. It's 360 00:18:09,440 --> 00:18:13,199 Speaker 9: ten thirty pm in the AI party goes to four am. 361 00:18:13,359 --> 00:18:15,800 Speaker 9: Don't worry if there's some glass dropping the dance for. 362 00:18:16,200 --> 00:18:21,120 Speaker 2: Okay, Dani's congratulations on the thank you initiative of your GIF. 363 00:18:21,200 --> 00:18:22,479 Speaker 3: What was the number he brought in? 364 00:18:22,520 --> 00:18:24,240 Speaker 4: It was like, I think there's like a billion dollars 365 00:18:24,280 --> 00:18:24,600 Speaker 4: in THEIRS. 366 00:18:25,000 --> 00:18:29,560 Speaker 3: One billion dollars for That's a nice number. Stay with us. 367 00:18:29,800 --> 00:18:40,080 Speaker 2: More from Bloomberg Surveillance coming up after this. 368 00:18:40,080 --> 00:18:44,000 Speaker 1: This is the Bloomberg Surveillance podcast. Listen live each weekday 369 00:18:44,040 --> 00:18:47,439 Speaker 1: starting at seven am Eastern on Applecarplay and Android Auto 370 00:18:47,480 --> 00:18:50,440 Speaker 1: with the Bloomberg Business app. You can also listen live 371 00:18:50,520 --> 00:18:54,080 Speaker 1: on Amazon Alexa from our flagship New York station. Just 372 00:18:54,119 --> 00:18:56,679 Speaker 1: say Alexa play Bloomberg eleven thirty. 373 00:18:57,080 --> 00:18:59,440 Speaker 2: Wendy Shower joins us. Now as we go, look at 374 00:19:00,200 --> 00:19:03,400 Speaker 2: grebs there. If you do the AI thing like your students, 375 00:19:03,400 --> 00:19:07,520 Speaker 2: and I do, Professor Schiller up at Brown University, It's 376 00:19:07,520 --> 00:19:12,359 Speaker 2: something like Jefferson, a strict constructionist, worried the Constitution didn't 377 00:19:12,440 --> 00:19:16,000 Speaker 2: grant power to buy territory. Let's start with the basics, 378 00:19:16,000 --> 00:19:21,040 Speaker 2: as President Trump trying to buy territory in Greenland or Venezuela. 379 00:19:22,560 --> 00:19:26,920 Speaker 10: Well, Tom and Paul and Lisa. Stephen Miller is one 380 00:19:26,920 --> 00:19:30,159 Speaker 10: of his chief domestic advisors, said, yeah, they want to 381 00:19:30,200 --> 00:19:33,639 Speaker 10: buy Greenland. They want to control Greenland somehow. And if 382 00:19:33,640 --> 00:19:35,800 Speaker 10: they want to do that, at least the most famous 383 00:19:35,840 --> 00:19:40,000 Speaker 10: precedent would indicate they need Congress's permission in a vote 384 00:19:40,160 --> 00:19:42,880 Speaker 10: to authorize using US dollars to do that. 385 00:19:43,520 --> 00:19:45,080 Speaker 3: Is that a Louisiana purchase. 386 00:19:46,200 --> 00:19:48,320 Speaker 10: It is a Louisiana purchase, and we're going to buy 387 00:19:48,600 --> 00:19:51,280 Speaker 10: a major territory. Now, you know, a lot of people 388 00:19:51,320 --> 00:19:53,920 Speaker 10: don't know the scope of Louisiana purchase, how much land 389 00:19:53,960 --> 00:19:56,080 Speaker 10: that was and why it was so important, you know, 390 00:19:56,160 --> 00:19:58,760 Speaker 10: to go west and sort of opening that entire gateway, 391 00:20:00,040 --> 00:20:02,320 Speaker 10: solidifying I think, US expansion. 392 00:20:03,240 --> 00:20:04,359 Speaker 6: So it's really going. 393 00:20:04,280 --> 00:20:06,960 Speaker 10: To have to be a justification when again, people are 394 00:20:06,960 --> 00:20:10,880 Speaker 10: worried about things at home, the president seems to be focusing, 395 00:20:10,920 --> 00:20:14,240 Speaker 10: with some exceptions, on matters abroad. 396 00:20:14,240 --> 00:20:17,879 Speaker 7: Wendy, should we be surprised that Congress is giving the 397 00:20:17,880 --> 00:20:21,640 Speaker 7: president a fair amount of leeway here on these international 398 00:20:21,720 --> 00:20:25,840 Speaker 7: efforts in Venezuela, maybe Greenland, maybe some other areas. 399 00:20:26,000 --> 00:20:28,480 Speaker 4: Should Congress be taking a larger role here? 400 00:20:29,640 --> 00:20:32,320 Speaker 10: Well, you know, on Venezuela, you know, the President of 401 00:20:32,400 --> 00:20:36,720 Speaker 10: States can take military action without talking to Congress, without 402 00:20:36,760 --> 00:20:39,360 Speaker 10: telling Congress for some limited. 403 00:20:39,000 --> 00:20:39,680 Speaker 6: Period of time. 404 00:20:39,840 --> 00:20:42,120 Speaker 10: And you know, the technicalities of the War Powers Act 405 00:20:42,320 --> 00:20:44,520 Speaker 10: is really boots on the ground, troops that are going 406 00:20:44,600 --> 00:20:46,800 Speaker 10: to be there. You have about forty five days, then 407 00:20:46,880 --> 00:20:48,800 Speaker 10: you have to ask permission again for forty five days. 408 00:20:48,800 --> 00:20:50,879 Speaker 10: Then you need an authorization of military force like we 409 00:20:50,880 --> 00:20:51,480 Speaker 10: had in Iraq. 410 00:20:52,160 --> 00:20:53,720 Speaker 6: That's the rule, that's the law. 411 00:20:53,880 --> 00:20:58,200 Speaker 10: The president seems to find ways of exercising presidential. 412 00:20:57,720 --> 00:20:59,200 Speaker 6: Power without following the law. 413 00:20:59,240 --> 00:21:01,680 Speaker 10: But right now, he is within the bounds of presidential 414 00:21:01,680 --> 00:21:02,960 Speaker 10: power in Venezuela. 415 00:21:03,080 --> 00:21:04,600 Speaker 6: Greenland's totally different. 416 00:21:04,680 --> 00:21:07,520 Speaker 10: And you're seeing Republican senators jump, you know, really get 417 00:21:07,560 --> 00:21:09,440 Speaker 10: out there very quickly. 418 00:21:09,400 --> 00:21:12,080 Speaker 6: And say, we're not buying Greenland. What are we doing? 419 00:21:12,119 --> 00:21:14,080 Speaker 6: We don't need Greenland. This doesn't seem to be what 420 00:21:14,080 --> 00:21:17,320 Speaker 6: we should be focusing on. So you've got some prominent 421 00:21:17,400 --> 00:21:20,040 Speaker 6: Republican voices in the Senate saying, no, we're not going 422 00:21:20,080 --> 00:21:20,600 Speaker 6: to approve this. 423 00:21:21,160 --> 00:21:23,080 Speaker 10: So I don't know how he moves money from the 424 00:21:23,119 --> 00:21:25,760 Speaker 10: Treasury somehow to buy Greenland without that support, but it's 425 00:21:25,760 --> 00:21:29,280 Speaker 10: a bigger matter. Republicans don't love to get involved in 426 00:21:29,280 --> 00:21:33,240 Speaker 10: these conflicts without any endgame, except, of course, a rock 427 00:21:33,320 --> 00:21:34,000 Speaker 10: under George W. 428 00:21:34,080 --> 00:21:34,359 Speaker 3: Bush. 429 00:21:34,680 --> 00:21:36,800 Speaker 10: So we're going into an election year. How do you 430 00:21:36,800 --> 00:21:39,240 Speaker 10: tell your constituents this is what we should be doing. 431 00:21:39,600 --> 00:21:42,760 Speaker 10: And Trump hasn't given them a really clear explanation they 432 00:21:42,760 --> 00:21:44,040 Speaker 10: could use with their constituents. 433 00:21:45,280 --> 00:21:48,360 Speaker 7: So politically, how does this play in an election year 434 00:21:48,440 --> 00:21:51,480 Speaker 7: for the Republicans and the Democrats? Here with President Trump, 435 00:21:51,800 --> 00:21:54,080 Speaker 7: like many presidents do here at the stage of their 436 00:21:55,040 --> 00:21:58,320 Speaker 7: you know, in a second term, focusing on international efforts, 437 00:21:58,359 --> 00:22:01,680 Speaker 7: how does this play domestically, do you thinkolitically well. 438 00:22:01,440 --> 00:22:04,399 Speaker 10: Republicans have argued for limited government, they supported those they 439 00:22:04,440 --> 00:22:05,800 Speaker 10: supported cutting governments. 440 00:22:05,840 --> 00:22:08,719 Speaker 6: You know, spending can go arise. We saw in Minnesota. 441 00:22:08,800 --> 00:22:11,040 Speaker 10: You know, things if they're not watched, we can lose 442 00:22:11,040 --> 00:22:13,639 Speaker 10: a lot of money to inefficiency and corruption. That's a 443 00:22:13,680 --> 00:22:17,480 Speaker 10: winning message with most voters. But how does that improve. 444 00:22:17,119 --> 00:22:18,800 Speaker 6: Voters' lives right now? 445 00:22:19,080 --> 00:22:21,639 Speaker 10: And the Democrats have the task without being in power 446 00:22:21,720 --> 00:22:23,960 Speaker 10: of saying, if you give us power, we will make 447 00:22:24,000 --> 00:22:27,240 Speaker 10: your life better on these dimensions, and Republicans now are 448 00:22:27,280 --> 00:22:30,360 Speaker 10: sort of saddled with explaining how they can control the 449 00:22:30,520 --> 00:22:34,159 Speaker 10: entire federal government and not make things better for people. 450 00:22:34,200 --> 00:22:37,760 Speaker 6: And going into Greenland and Venezuela doesn't really show voters there, 451 00:22:37,840 --> 00:22:40,359 Speaker 6: So that both parties face some challenges. They're kind of 452 00:22:40,400 --> 00:22:41,320 Speaker 6: inverse of each other. 453 00:22:41,520 --> 00:22:43,720 Speaker 2: Want to show here with us with Brown University, can't 454 00:22:43,720 --> 00:22:46,480 Speaker 2: say enough about our academic effort and new treats out 455 00:22:46,720 --> 00:22:49,720 Speaker 2: an inequality across states in America. 456 00:22:49,880 --> 00:22:52,400 Speaker 3: At Cambridge, we're celebrating that as well. Paul. 457 00:22:52,640 --> 00:22:55,280 Speaker 2: In the old days, you and I studied the Louisiana purchase, 458 00:22:55,720 --> 00:22:58,240 Speaker 2: you know, before Duke basketball game, we read like six 459 00:22:58,320 --> 00:23:02,080 Speaker 2: pages in the cliff notes, David Rubinstein. Now at the archives, 460 00:23:02,520 --> 00:23:06,200 Speaker 2: you go in you can see the actual photo images 461 00:23:06,200 --> 00:23:09,120 Speaker 2: of the seven page document. You can click and get 462 00:23:09,160 --> 00:23:12,520 Speaker 2: a transcription. So here's where we're heading, Professor Schiller, I'm 463 00:23:12,520 --> 00:23:16,320 Speaker 2: making this up, folks. Treaty between the United States of 464 00:23:16,359 --> 00:23:19,639 Speaker 2: America and the Kingdom of Denmark, the President of the 465 00:23:19,720 --> 00:23:22,960 Speaker 2: United States of America and the First Council of the 466 00:23:23,040 --> 00:23:26,399 Speaker 2: Kingdom of Denmark and the name of the Danish people, 467 00:23:26,960 --> 00:23:31,479 Speaker 2: designed to remove all soorts of misunderstanding relative to the 468 00:23:31,640 --> 00:23:34,320 Speaker 2: food of happiness and all the rest of it. Wendy, 469 00:23:34,520 --> 00:23:38,440 Speaker 2: we are we heading towards, you know, almost a Versailles 470 00:23:38,480 --> 00:23:42,000 Speaker 2: hallimerror's document signing with Denmark. 471 00:23:43,520 --> 00:23:46,480 Speaker 6: Well again, you know, to get we know this from history. 472 00:23:46,680 --> 00:23:50,480 Speaker 6: Presidents need the Senate to approve treaties. That's the rule 473 00:23:50,680 --> 00:23:53,440 Speaker 6: that's in the Constitution. You know, you can't really get 474 00:23:53,480 --> 00:23:53,919 Speaker 6: around that. 475 00:23:54,320 --> 00:23:56,439 Speaker 10: So he could sign a document and they can have 476 00:23:56,480 --> 00:23:59,399 Speaker 10: some ceremony, but it wouldn't have any standing unless the 477 00:23:59,480 --> 00:24:00,800 Speaker 10: Senate of roofs the treaty. 478 00:24:00,880 --> 00:24:02,040 Speaker 6: And we know we know. 479 00:24:02,040 --> 00:24:04,840 Speaker 10: That Senates have rejected treaties in the past, as Jimmy 480 00:24:04,840 --> 00:24:08,920 Speaker 10: Carter on Sault too. So you can get rejected, and 481 00:24:09,119 --> 00:24:11,000 Speaker 10: certainly I think this is the thing that. 482 00:24:11,400 --> 00:24:12,680 Speaker 6: The Republicans want to avoid. 483 00:24:12,880 --> 00:24:15,760 Speaker 10: The Republicans in Congress now are running from behind to 484 00:24:15,840 --> 00:24:18,959 Speaker 10: keep control of the House and maybe even the Senate, 485 00:24:19,440 --> 00:24:22,280 Speaker 10: and they need something to help them get back into 486 00:24:22,320 --> 00:24:25,320 Speaker 10: the game. You know, having to attend a signing ceremony 487 00:24:25,359 --> 00:24:28,000 Speaker 10: on purchasing Greenland is not going to get the Republicans 488 00:24:28,240 --> 00:24:30,440 Speaker 10: back in the game to hold power in twenty twenty six. 489 00:24:30,600 --> 00:24:34,520 Speaker 3: Well, this is the Detroit Lions blue button. Excuse me, Paul, 490 00:24:34,600 --> 00:24:37,160 Speaker 3: this is a huge deal. The Senate, we don't know. 491 00:24:37,200 --> 00:24:39,879 Speaker 3: As Professor Schulwood just said, it's up for grabs. 492 00:24:40,040 --> 00:24:43,160 Speaker 7: It is so again, we're the news is coming fast 493 00:24:43,240 --> 00:24:44,480 Speaker 7: and Florida furious. 494 00:24:44,600 --> 00:24:44,959 Speaker 4: Wendy. 495 00:24:45,000 --> 00:24:49,200 Speaker 7: We had this Ice Minneapolis shooting kind of raising questions 496 00:24:49,280 --> 00:24:53,080 Speaker 7: just about Ice in general and how Ice interacts with 497 00:24:53,320 --> 00:24:57,080 Speaker 7: citizens and non citizens. Is this a political liability for 498 00:24:57,119 --> 00:24:59,399 Speaker 7: the president or is this in fact play up to 499 00:25:00,200 --> 00:25:02,360 Speaker 7: kind of what his base is looking for. 500 00:25:03,640 --> 00:25:05,840 Speaker 10: Well, I mean, his core base supports him really no 501 00:25:05,960 --> 00:25:09,000 Speaker 10: matter what he does. And remember he's not actually running 502 00:25:09,040 --> 00:25:12,880 Speaker 10: for anything in November. But we've seen with George Floyd 503 00:25:12,920 --> 00:25:16,960 Speaker 10: in Minneapolis in particular, also how this event could catalyze 504 00:25:17,000 --> 00:25:20,919 Speaker 10: and organize what have been resistance movements across the country 505 00:25:20,960 --> 00:25:23,080 Speaker 10: to ICE and the placement of the National Guard in 506 00:25:23,160 --> 00:25:26,040 Speaker 10: major cities, and that can really bring it all together 507 00:25:26,160 --> 00:25:29,639 Speaker 10: under the umbrella of overreach and overstepping power. 508 00:25:29,960 --> 00:25:32,119 Speaker 6: We know that the vast majority of Americans are the vast. 509 00:25:32,000 --> 00:25:35,840 Speaker 10: Majority sixty three percent or so disapprove of ICE tactics, 510 00:25:36,160 --> 00:25:38,639 Speaker 10: So this is not going to help that number with 511 00:25:38,760 --> 00:25:42,080 Speaker 10: Republicans and Independents are in that mix as our Republican voter. 512 00:25:42,240 --> 00:25:44,720 Speaker 10: So you have to ask yourself, if your Congress, do 513 00:25:44,760 --> 00:25:47,439 Speaker 10: you want to defend these measures consistently? 514 00:25:47,760 --> 00:25:50,560 Speaker 6: That the real power Trump has now still. 515 00:25:50,280 --> 00:25:53,320 Speaker 10: Over the Pulkans and Congress is the primaries. He can 516 00:25:53,400 --> 00:25:56,040 Speaker 10: swoop in and shift the primary. At least we saw 517 00:25:56,080 --> 00:25:58,280 Speaker 10: that in the fall. If he can still do that, 518 00:25:58,720 --> 00:26:01,320 Speaker 10: they have to stay loyal to him because they don't 519 00:26:01,359 --> 00:26:04,320 Speaker 10: want him to come into their backyard and get them 520 00:26:04,320 --> 00:26:06,040 Speaker 10: a primary challenge that they can't win. 521 00:26:06,440 --> 00:26:10,320 Speaker 2: Wendy, thank you so much, Professor Schuller of Brown At University. 522 00:26:10,600 --> 00:26:11,320 Speaker 3: Stay with us. 523 00:26:11,560 --> 00:26:21,879 Speaker 2: More from Bloomberg Surveillance coming up after this. 524 00:26:21,880 --> 00:26:25,760 Speaker 1: This is the Bloomberg Surveillance Podcast listen live each weekday 525 00:26:25,800 --> 00:26:28,840 Speaker 1: starting at seven am Eastern on Apple Cocklay and Android 526 00:26:28,840 --> 00:26:31,879 Speaker 1: Auto with the Bloomberg Business App. You can also listen 527 00:26:31,960 --> 00:26:35,240 Speaker 1: live on Amazon Alexa from our flagship New York station, 528 00:26:35,760 --> 00:26:39,880 Speaker 1: Just Say Alexa, Play Bloomberg eleven thirty with our newspapers 529 00:26:39,920 --> 00:26:40,600 Speaker 1: Lisa Manteto. 530 00:26:40,760 --> 00:26:43,440 Speaker 11: Okay, so we've all heard about AI taking over a 531 00:26:43,440 --> 00:26:45,960 Speaker 11: lot of the mundane tests at work, right, the stuff 532 00:26:46,000 --> 00:26:48,360 Speaker 11: you don't want to do. The thought is that it's 533 00:26:48,359 --> 00:26:50,840 Speaker 11: going to for you to concentrate on the important stuff, right, 534 00:26:50,840 --> 00:26:53,840 Speaker 11: to focus on that. But some executive Attollia Wall Street Journal, 535 00:26:53,880 --> 00:26:56,720 Speaker 11: there is a downside to that, and they say that 536 00:26:56,720 --> 00:27:00,680 Speaker 11: that quote busy work is what gives your brain a break, 537 00:27:01,080 --> 00:27:04,480 Speaker 11: so it prevents burnout because you're taking a break and 538 00:27:04,520 --> 00:27:06,880 Speaker 11: that break from doing all those mony, you know, from 539 00:27:07,200 --> 00:27:11,120 Speaker 11: doing those tasks, it makes you think more and it 540 00:27:11,160 --> 00:27:13,880 Speaker 11: gives you these creative sparks. So they're saying you need 541 00:27:14,119 --> 00:27:16,000 Speaker 11: the conversation in the kitchen. 542 00:27:16,080 --> 00:27:19,200 Speaker 3: Last study is that what it's come up. 543 00:27:19,480 --> 00:27:22,199 Speaker 11: So they're saying you need that busy work to spark 544 00:27:22,280 --> 00:27:23,920 Speaker 11: some creative you know energy. 545 00:27:24,000 --> 00:27:25,800 Speaker 3: Empty the dishwasher, Yes. 546 00:27:25,720 --> 00:27:28,720 Speaker 11: Like that's mundane work, and she can she can get 547 00:27:28,760 --> 00:27:31,680 Speaker 11: some great creative energy from doing the dish from emptying 548 00:27:31,720 --> 00:27:35,040 Speaker 11: the dishwasher. But that's where there's it's a different side 549 00:27:35,080 --> 00:27:37,200 Speaker 11: to it because we've always you know, heard, you know 550 00:27:37,320 --> 00:27:39,639 Speaker 11: how the benefits of you know, getting rid of the 551 00:27:39,720 --> 00:27:40,320 Speaker 11: mundane task. 552 00:27:40,400 --> 00:27:41,280 Speaker 6: But they're saying we need them. 553 00:27:41,320 --> 00:27:43,719 Speaker 7: See, I'm kind of a task granted person as opposed 554 00:27:43,720 --> 00:27:46,919 Speaker 7: to the white on the weekend, the whiteboard all that. 555 00:27:47,080 --> 00:27:48,560 Speaker 4: No, thank you, No you don't. 556 00:27:48,600 --> 00:27:50,600 Speaker 3: You don't make a list on the weekend. 557 00:27:50,760 --> 00:27:53,000 Speaker 4: No no, but I just list. 558 00:27:53,840 --> 00:27:54,400 Speaker 3: No no. 559 00:27:54,440 --> 00:27:58,240 Speaker 2: My father was the absolute worst, and because of him, 560 00:27:58,600 --> 00:28:01,680 Speaker 2: there's never been a list. 561 00:28:02,359 --> 00:28:04,480 Speaker 4: Buy and low, sell high. That's I can follow that. 562 00:28:04,840 --> 00:28:05,840 Speaker 6: There you go, There you go. 563 00:28:06,040 --> 00:28:08,280 Speaker 11: Okay, we know food costs are on the rise, right, 564 00:28:08,280 --> 00:28:11,200 Speaker 11: we always talk about that. But Bloomberg has this interesting 565 00:28:11,280 --> 00:28:12,760 Speaker 11: article on the terminal. You got to check it out. 566 00:28:12,800 --> 00:28:16,640 Speaker 11: It's saying that shum, some chefs they're turning to trash 567 00:28:17,119 --> 00:28:19,640 Speaker 11: to create new menus. Now stay with me. Okay, I'm 568 00:28:19,680 --> 00:28:22,320 Speaker 11: not talking about they're going in the garbage. Okay, they're 569 00:28:22,320 --> 00:28:25,159 Speaker 11: not going in the garbage, but they're doing these zero 570 00:28:25,280 --> 00:28:29,240 Speaker 11: waste menus. So they're using ingredients that they would normally 571 00:28:29,520 --> 00:28:33,439 Speaker 11: throw out like things like mushroom powder made from stems trimmings, 572 00:28:33,840 --> 00:28:35,760 Speaker 11: But you wouldn't know by the price because they're creating 573 00:28:35,800 --> 00:28:36,840 Speaker 11: these tasting menus that. 574 00:28:36,840 --> 00:28:38,840 Speaker 6: Cost one hundred and sixty dollars. 575 00:28:38,880 --> 00:28:41,960 Speaker 11: Nice, So they're making a profit on things that they 576 00:28:42,000 --> 00:28:45,040 Speaker 11: would have thrown out. So it's a different look into 577 00:28:45,080 --> 00:28:49,520 Speaker 11: how companies are dealing with the increase of food prices. 578 00:28:50,360 --> 00:28:51,600 Speaker 6: But there's a lot of waste. 579 00:28:51,600 --> 00:28:53,480 Speaker 11: Like there's a report it shows more than one billion 580 00:28:53,480 --> 00:28:54,360 Speaker 11: tons of food. 581 00:28:54,120 --> 00:28:58,280 Speaker 6: Gets tossed in the world each year. Restaurants about thirty 582 00:28:58,360 --> 00:28:59,520 Speaker 6: percent of that total. 583 00:29:00,280 --> 00:29:01,640 Speaker 11: A lot of it is, you know, from people when 584 00:29:01,640 --> 00:29:03,400 Speaker 11: you're done eating, you just kind of throw your food out, 585 00:29:03,440 --> 00:29:05,000 Speaker 11: but a lot of it is from stuff that they 586 00:29:05,000 --> 00:29:06,920 Speaker 11: could reuse that they choose not to. 587 00:29:07,200 --> 00:29:07,320 Speaker 2: Well. 588 00:29:07,760 --> 00:29:09,280 Speaker 7: I think part of the problem is just in the US. 589 00:29:09,360 --> 00:29:12,240 Speaker 7: I noticed it is just thes are just out of 590 00:29:12,400 --> 00:29:14,840 Speaker 7: control and they're embarrassing. 591 00:29:14,880 --> 00:29:17,680 Speaker 4: It's ridiculous, you know, I mean, now we're we ordered, 592 00:29:17,720 --> 00:29:19,040 Speaker 4: we split it, and we split what we ordered. 593 00:29:19,080 --> 00:29:21,720 Speaker 2: Last night, major you shout out in New York City, 594 00:29:21,760 --> 00:29:25,440 Speaker 2: they led the way. City Harvest has been brilliant in US. Yes, 595 00:29:25,760 --> 00:29:27,720 Speaker 2: is a great charity. What else do you give me 596 00:29:27,760 --> 00:29:28,080 Speaker 2: one more. 597 00:29:28,120 --> 00:29:29,640 Speaker 11: Okay, I'll give you one more because we were talking 598 00:29:29,680 --> 00:29:32,680 Speaker 11: about you know, the someone mentioned earlier, the dry January, right, 599 00:29:32,680 --> 00:29:39,640 Speaker 11: people drinking a lot less. Okay, so this is the 600 00:29:39,680 --> 00:29:41,640 Speaker 11: sober party girl revolution. 601 00:29:41,920 --> 00:29:42,240 Speaker 5: Okay. 602 00:29:42,280 --> 00:29:44,400 Speaker 11: This is in the New York Times. They had like 603 00:29:44,440 --> 00:29:46,480 Speaker 11: over one hundred people who went to this New Year's 604 00:29:46,520 --> 00:29:49,880 Speaker 11: place called the Maze. You know, those are like those 605 00:29:50,040 --> 00:29:52,640 Speaker 11: private clubs that people pay memberships for. 606 00:29:53,040 --> 00:29:54,320 Speaker 6: But the difference with this. 607 00:29:54,200 --> 00:29:57,760 Speaker 11: One is that it does not serve alcohol. So it 608 00:29:58,000 --> 00:30:01,360 Speaker 11: costs about their annual dues or by three three hundred 609 00:30:01,360 --> 00:30:03,240 Speaker 11: dollars a year, you have a one time fee of 610 00:30:03,240 --> 00:30:05,720 Speaker 11: about fifteen hundred dollars. All that you get, you know, 611 00:30:05,760 --> 00:30:08,239 Speaker 11: the fancy chairs, and you get the nice spaces and 612 00:30:08,280 --> 00:30:12,080 Speaker 11: the fancy restaurant dishes, but you get no alcohol. And 613 00:30:12,120 --> 00:30:16,160 Speaker 11: they're saying this is the trend. People are drinking less alcohol, 614 00:30:16,200 --> 00:30:18,040 Speaker 11: and they want to go to these places where they 615 00:30:18,040 --> 00:30:20,000 Speaker 11: don't have to worry about other drunk people, you know, 616 00:30:20,080 --> 00:30:20,760 Speaker 11: being an issue. 617 00:30:20,880 --> 00:30:23,440 Speaker 4: What percentage of them are all gummied up when they go. 618 00:30:23,360 --> 00:30:26,560 Speaker 6: Into today That was not mentioned in the article. 619 00:30:26,680 --> 00:30:30,680 Speaker 11: Yeah, but they're just saying that they want members to 620 00:30:30,720 --> 00:30:32,160 Speaker 11: remain sober on site. 621 00:30:32,280 --> 00:30:34,160 Speaker 4: You don't want any for drinking on their. 622 00:30:34,000 --> 00:30:36,920 Speaker 11: Club, and people are paying to have this membership over 623 00:30:36,960 --> 00:30:37,800 Speaker 11: three thousand. 624 00:30:37,480 --> 00:30:38,040 Speaker 4: Dollars a year. 625 00:30:38,320 --> 00:30:41,320 Speaker 2: The newspaper's Lisa Mateo there with another lecture for Time 626 00:30:41,440 --> 00:30:44,280 Speaker 2: King greatly appreciate that this morning. 627 00:30:45,000 --> 00:30:49,880 Speaker 1: This is the Bloomberg Surveillance Podcast, available on Apple, Spotify, 628 00:30:49,960 --> 00:30:54,240 Speaker 1: and anywhere else you get your podcasts. Listen live each weekday, 629 00:30:54,400 --> 00:30:57,600 Speaker 1: seven to ten am Easter and on Bloomberg dot com, 630 00:30:57,760 --> 00:31:01,560 Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app. 631 00:31:01,880 --> 00:31:04,960 Speaker 1: You can also watch us live every weekday on YouTube 632 00:31:05,280 --> 00:31:07,280 Speaker 1: and always on the Bloomberg terminal