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Speaker 2: One of the things we're going to do is talk
Speaker 2: about retirement planning. Marta Norton is exquisite out of Chicago.
Speaker 3: She's with Empower.
Speaker 2: I should say that Empower handles the retirement programs of
Speaker 2: Bloomberg LP.
Speaker 3: Do you know I have a retirement program, so.
Speaker 4: I can't retire now, just keeping training.
Speaker 2: I've been in the triple leveraged all cash fund with
Speaker 2: Empower forever, joining us Marta and Norton. Marta, I read
Speaker 2: your research note and then I look at the retirement
Speaker 2: planning of Empower and Empower saying, you know what, if
Speaker 2: you really believe in equities, front load you retirement contribution
Speaker 2: this year.
Speaker 3: Is that a good strategy for you? Are you so
Speaker 3: bullish that.
Speaker 2: You want to tell people, don't do your retirement contribution
Speaker 2: over twelve months, load the boat the first ninety days.
Speaker 5: Of course, the argument for doing that is that then
Speaker 5: you capture with your contribution all the gains over the
Speaker 5: course of the year. And I think when we take
Speaker 5: a look at what to expect in twenty twenty six,
Speaker 5: a lot of the bulk case comes down to what
Speaker 5: we expect from earnings, and that relates, of course to
Speaker 5: the mag seven, which are expected to deliver something along
Speaker 5: the lines of what we saw in twenty twenty five.
Speaker 5: But then also this broadening out story for the broader market,
Speaker 5: So to the extent that we do see that come
Speaker 5: to fruition, that can be a benefit of front loading
Speaker 5: that contribution. But what I would also add is if
Speaker 5: you're expecting a year of volatility, which is I think
Speaker 5: something that we could anticipate with the AI narrative and
Speaker 5: the moments of doubt that occur with that, taking advantage
Speaker 5: of the utility dollar cost averaging in that can also
Speaker 5: be a viable path.
Speaker 6: So you have two good choices there, Marty.
Speaker 7: Do we have a rotation going on maybe late last
Speaker 7: year in this market or is it still going to
Speaker 7: be an AI driven twenty twenty six.
Speaker 6: Yeah, this is what.
Speaker 5: I am wrestling with a great deal, and I think
Speaker 5: there are two major arguments that people are pointing to
Speaker 5: when they talk about this rotation away from tech, away
Speaker 5: from AI, they point to valuations and they point to earnings.
Speaker 5: I think that second second argument is a lot stronger
Speaker 5: than the first argument.
Speaker 6: When we look at valuations, we're.
Speaker 5: Not just looking at them relative sector to one another.
Speaker 5: We're looking at them relative to their own history. And
Speaker 5: on that count, I would actually argue that some of
Speaker 5: the mag seven have gotten a bit cheaper. And when
Speaker 5: we look outside that subset, if you're looking at consumer staples,
Speaker 5: if you're looking at utilities, if you're looking at some
Speaker 5: of these other areas of the market, they're actually pretty pricey.
Speaker 7: Are more important than ever one could argue. So we
Speaker 7: had some really good earnings in twenty twenty five, you
Speaker 7: expect earnings to continue strong enough in twenty six to
Speaker 7: support this market.
Speaker 5: I think that is a reasonable expectation. I think there's
Speaker 5: a few things that are coming to head there on
Speaker 5: the AI front. I think we can continue to see
Speaker 5: some of that momentum from the MAG seven, from the
Speaker 5: AI names. I think when we're looking at the broader market,
Speaker 5: you have a few tail wins to take advantage of.
Speaker 5: You have the fiscal stimulus, you have the monetary stimulus.
Speaker 6: You have what some folks are.
Speaker 5: Expecting to be kind of the incremental implementation of AI.
Speaker 5: This one i'm a little bit more allier of. I
Speaker 5: think it will take more time to really see a
Speaker 5: massive earnings boost from AI implementation, but maybe on the
Speaker 5: margin that's another benefit. So I guess as much as
Speaker 5: I want to be skeptical on the earnings front, I
Speaker 5: think it's hard to find a really negative case to
Speaker 5: look at from a corporate earnings perspective, Marta.
Speaker 2: The retirement planning game, going back to the risk of
Speaker 2: nineteen seventy four or has been really difficult for a
Speaker 2: lot of people. How many people, I mean, within all
Speaker 2: the expertise of empower and all the macroeconomics and the
Speaker 2: calls that you're making, how many people are behind? What
Speaker 2: percentage of America is behind in their retirement.
Speaker 5: Well, there's a few different ways to look at this.
Speaker 5: When we take a look at access to retirement portfolios,
Speaker 5: that access has improved meaningfully. I think there's numbers that
Speaker 5: show of the private companies out there, we have about seventy.
Speaker 3: Percent offering for one case.
Speaker 5: When we look at the actual contributions, we're are seeing
Speaker 5: decent savings rates. So experts recommend somewhere between twelve and
Speaker 5: fifteen percent saving for retirement. When we look at what
Speaker 5: numbers we saw in twenty twenty five, we see numbers
Speaker 5: that kind of rival that level. I think the big
Speaker 5: question is making sure that folks are engaged. When people
Speaker 5: get engaged with our retirement accounts, when they're paying attention,
Speaker 5: that's when you start to see the contributions take up.
Speaker 5: When they're doing auto and roll features, when they're doing
Speaker 5: auto escalate features, that's when you start to see real
Speaker 5: improved outcomes for retirement. And there's still agains to be
Speaker 5: made there.
Speaker 3: What is an auto escalator feature?
Speaker 5: So the idea that every year your contribution automatically increases,
Speaker 5: so you don't have to go in and make an
Speaker 5: active decision. You press a button and that occurs automatically
Speaker 5: for you.
Speaker 4: Nice should try that.
Speaker 7: I don't know if I have that act great app
Speaker 7: by the way and empower Oh good, yeah, it works
Speaker 7: for me.
Speaker 4: I know what I'm doing.
Speaker 7: So for how about the younger folks? Are the younger
Speaker 7: folks saving and entering.
Speaker 4: Into opting into four to one k's.
Speaker 7: And savings plans at a rate we'd like to see
Speaker 7: how's it look for the younger folks.
Speaker 5: So when we look at account balances, we're seeing, say,
Speaker 5: if you're in your twenties, you're seeing an account balance
Speaker 5: of somewhere around one hundred thousand. If you're looking later
Speaker 5: in life, you're seeing account balances of somewhere around six hundred.
Speaker 5: So we are seeing engagement from the younger folks. I
Speaker 5: think this is always something that requires a lot of
Speaker 5: education with workforces. When folks are entering the workforce, maybe
Speaker 5: they're working on that Robinhood account, but they're not necessarily
Speaker 5: thinking out decades and what retirement could look like. So
Speaker 5: making sure that companies are engaging with their employees and
Speaker 5: making the case because that's of course. You know what
Speaker 5: Warren Buffett talks about compounding being a snowball rolling down
Speaker 5: a hill. It can have such a profound impact on
Speaker 5: people's ultimate outcomes.
Speaker 2: Well, mister Buffet and mister Bunger also talk about don't
Speaker 2: over diversify.
Speaker 3: What's a trend you see it in power?
Speaker 2: Given the macroeconomics, given a three year or four year
Speaker 2: equity post COVID boom, are we too diversified? Are we
Speaker 2: in too many fancy things other than doing basic, block
Speaker 2: and tackle investing.
Speaker 5: Yeah, I think at this point what we're seeing is
Speaker 5: still I mean in terms of asset classes. When you
Speaker 5: look at managed accounts for example, which is you know,
Speaker 5: a single solution that has a range of asset classes
Speaker 5: within it and investors make one choice to move into
Speaker 5: that portfolio, you do see a pretty ample spread across
Speaker 5: US non US fixed income. It's not overly exotic, and
Speaker 5: you have seen a real benefit And I think this
Speaker 5: was one of the things that came into question last year.
Speaker 5: Does something like the sixty forty deliver and you did
Speaker 5: see a real benefit from that style of investing, So
Speaker 5: at least kind of spreading beyond the S and P
Speaker 5: five hundred, I think that is something that we've seen
Speaker 5: some value to Now. Now whether every single NICHE asset
Speaker 5: class adds value to the same degree, that's another question.
Speaker 3: Marta, Thank you so much.
Speaker 2: More Empower Stay with us more from Bloomberg Surveillance coming
Speaker 2: up after this.
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Speaker 3: This is a special moment for Bloomberg Surveillance.
Speaker 2: We'd love to see our guests over the years have
Speaker 2: a conviction.
Speaker 3: Have a belief. Sometimes they're wrong. Has Dan and Ives
Speaker 3: ever been wrong?
Speaker 4: Oh?
Speaker 2: You know, I thought you think there was a a
Speaker 2: while back there. But he's been right enough where today
Speaker 2: he will do something very cool. I've enjoyed this wonderful
Speaker 2: privilege to sit with Ken Pruitt and wants Charlie Pellett
Speaker 2: ring the bell of the New York Stock Exchange. Mister Ives,
Speaker 2: I believe will open trading of the New York Stock
Speaker 2: Exchange today and celebration of the success of the ives
Speaker 2: ETF It's brought.
Speaker 3: In a few few do balloons over the recent weeks.
Speaker 2: Dan Ives joins us from Wedbush and celebration of nine
Speaker 2: point thirty and this morning, Dan, what does it feel
Speaker 2: like to join Snoop Dogg and kiss with the I
Speaker 2: don't know his his?
Speaker 3: You know? To these fancy people on the bell? What
Speaker 3: are you going to dress appropriately?
Speaker 8: I mean, I'm look I addressed appropriately?
Speaker 9: Look I mean to look You're It's part of history,
Speaker 9: right h What the New York Stock Machines represents in
Speaker 9: terms of those walls and obviously the success that we've
Speaker 9: had with odds, it's not just me, it's you know,
Speaker 9: it's the team, but it's the broad belief that investments
Speaker 9: have had in us in this AI revolution. So it's
Speaker 9: so exciting to be a part of history this morning.
Speaker 3: Is your ETF actively managed? Is it passive?
Speaker 2: Has there been a strategic IVES call that's brought in
Speaker 2: a few dollars?
Speaker 3: Yeah?
Speaker 8: Look, I mean this is all based on the ives
Speaker 8: AI thirty, which is.
Speaker 9: Our you know, these are our AI thirty, are thirty
Speaker 9: winners in the AI Revolution, all based on our research
Speaker 9: four times a year. You know, we basically switch in
Speaker 9: out who I believe is more relevant less relevant. And
Speaker 9: you know, the last six months and getting to a billion,
Speaker 9: it's been I think a validation as investors are trying
Speaker 9: to find how do you play the AI Revolution?
Speaker 8: And I'm happy about the comblems and on and.
Speaker 7: Just for you know, for this fund here the top
Speaker 7: fund holdings is the names that Dan's been talking about
Speaker 7: for a long time in video, Micron Technologies, Taiwan Semiconductor, Amazon, Alphabet, Microsoft,
Speaker 7: So the names that Dan's been recommending for a long time.
Speaker 4: Dan speaking of AI.
Speaker 7: We know you just returned from Las Vegas the Consumer
Speaker 7: Electronics Show. I'm hearing a lot about physical AI. I
Speaker 7: heard that from mister Wang Jensen Wong at Uh in video.
Speaker 7: What is physical AI and what are the opportunities there?
Speaker 9: Yeah, look, well physical AI, it's really about autonomous robotic.
Speaker 8: I mean this is now.
Speaker 9: What I view is the consumer AI revolution starts in
Speaker 9: terms of physical app and I think what you saw
Speaker 9: with in video, they're weighing out and to end's platform
Speaker 9: on autonomous We've talked about It's why we're so bulletr
Speaker 9: and Tatsa, even robotaxes and the autonomous sort of vision there.
Speaker 9: But this is this is the next stiege of AI.
Speaker 9: But it's all fueled by the godfather of AI Jensen
Speaker 9: the video.
Speaker 2: I look Dan and Wells Fargo reducing their overweight. They
Speaker 2: stay overweight on Microsoft from whatever it was down to
Speaker 2: six sixty five down the income statement into the earning season.
Speaker 2: Dan eyes with you with a six twenty five outperformer
Speaker 2: in Microsoft. Where and the financial statements is the important
Speaker 2: point for Microsoft earnings?
Speaker 9: I mean, I think it's about Azure and cloud and growth.
Speaker 9: I had to put in the context. I mean, you're
Speaker 9: talking about the highest margin business that I believe the
Speaker 9: streets under estimating probably by ten to fifteen percent this year.
Speaker 9: And you're talking about I think the streets all the
Speaker 9: underestimating about twenty five billion of incremental growth from a
Speaker 9: cash book perspective, we're talking about fifteen billion that.
Speaker 8: I don't think is factor industry models from Microsoft.
Speaker 2: Right, Well, they're modeling fifteen percent revenue growth. So are
Speaker 2: you saying down the income statement is the underestimation of Microsoft?
Speaker 9: Yeah, I think I think it's underestimated from a growth
Speaker 9: perstructive on cloud, underestimated in terms that we say on
Speaker 9: cask FOWK.
Speaker 8: And the reality is the enterprise AI revolution.
Speaker 9: It all starts in Redmond and Thedella, and industry is
Speaker 9: underestimating what this means from Microsoft.
Speaker 4: Dan.
Speaker 7: One of the things I heard from cees and and
Speaker 7: Video they launched this Alpha Mayo platform. Tell us what
Speaker 7: this is because this gets a little scary for some people.
Speaker 9: I think, Yeah, I mean, like you could say it's
Speaker 9: reasoning or really AI needs autonomous. It's an end to
Speaker 9: end platform that in Video is basically laying out as
Speaker 9: their answer for autonomous. It's really something that ultimately better
Speaker 9: than the human driver. And I view it is just
Speaker 9: like what Taska was doing on robo taxes, just like
Speaker 9: what we're seeing on autonomous Nvidia is going to be
Speaker 9: a supplier from a chip perspective, but also they're.
Speaker 8: Going to play an ant end platform play as well.
Speaker 2: Dan ives with us this morning with webbush a celebration,
Speaker 2: and just under one hour he will stand at the
Speaker 2: New York Stock Exchange with his wonderful etf It's really
Speaker 2: done well, and the vectors from his garbman would say
Speaker 2: from the lower left to the upper right as.
Speaker 3: Well, Dan, I want to switch to Apple. I was
Speaker 3: just in Paris and I'd never been.
Speaker 2: To the Tuileries, to the Museum Rangerie it's called, which
Speaker 2: is the those lovely simple quiet Monet paintings of the
Speaker 2: water lilies, sterile quiet, and I witnessed their dan Ives
Speaker 2: and I thought of you packed tourists, many many from
Speaker 2: the Pacific Rim, holding Apple iPhones in their hands, taking photos,
Speaker 2: taking selfies, doing YouTube bes stuff in front of the
Speaker 2: quiet of Claude Monet of eighteen ninety, his gift to the.
Speaker 3: Nation at World War One.
Speaker 2: Explain Dan Ives, what I witnessed where are we in
Speaker 2: five years with the use of the iPhone.
Speaker 9: Look, and I think it's all about the AI coming
Speaker 9: to the Apple ecosystem.
Speaker 8: We talk about this is going to be the year
Speaker 8: AI for Apple.
Speaker 9: I mean, to my what one point five billion iPhones
Speaker 9: in the world, I mean two point four billion iOS devices.
Speaker 9: It's about you when you look at this next stage
Speaker 9: for Apple, it's going to be the most important stage
Speaker 9: I think, going to the AI revolution and they monetize
Speaker 9: that install based.
Speaker 8: That's going to be front and summer.
Speaker 9: And it's why one of our top picks and in
Speaker 9: my opinion, underestimated in terms of what the error that
Speaker 9: they're hitting when it comes to AI.
Speaker 4: Dan.
Speaker 7: I know, we kind of knew the CS was going
Speaker 7: to be all AI centric here as you talk to investors,
Speaker 7: are you don't say any AI fatigue that maybe it's
Speaker 7: played out, or boy, it's it's hard to handle these valuations,
Speaker 7: or boy, their numbers are getting so big. What's the
Speaker 7: conversations you're having with clients.
Speaker 9: About Yeah, well, I think when you you know the
Speaker 9: time we spend there with Nvideo and Jensen and on
Speaker 9: the floor, you cannot come away within that.
Speaker 8: There's an AI bubble I.
Speaker 9: Mean we're still in the early days of play now
Speaker 9: because you see what's happening on embedded devices on the
Speaker 9: chip releases obviously releasage to AMD and others, and I
Speaker 9: think it's not the tig. I think investors are starting
Speaker 9: to realize that this next stage of the AI revolution
Speaker 9: is now taken.
Speaker 3: Hold Dan, help me here with this.
Speaker 2: Paul mentioned cees. Where do the smaller AI companies fit in?
Speaker 2: Are we going to like perplexity, Are we going to
Speaker 2: see M and A this year for all of these
Speaker 2: names that Claude and the rest that I don't understand.
Speaker 3: Are we going to see an AI roll up?
Speaker 9: I think you're gonna see a lot of acts, positions,
Speaker 9: strategic financial acquisitions in terms of tech, which about robotics,
Speaker 9: that's one of our favorite era games. I've still serve
Speaker 9: robotics is in a good example. Looking the reality is
Speaker 9: that it's an arms race that's playing out. It's gonna
Speaker 9: be a lot of acquisitions, a lot of consolidation, and
Speaker 9: I think that's why it's just going to be year
Speaker 9: three of an eight to ten year build out of
Speaker 9: the revolution.
Speaker 2: When did you get into tech stocks, Like, were you
Speaker 2: sitting in the student union. I've sat in the student
Speaker 2: union at Penn State. Were you out at State College
Speaker 2: one day and the lights shone down? Dan Eisener's was epiphany,
Speaker 2: wear bright clothes and followed tech.
Speaker 9: I think, look, I mean, obviously it started in my
Speaker 9: Penn and State days. I have a lot of tend
Speaker 9: standers here at the at the bell ring it. But
Speaker 9: I think to me, it was really in the late
Speaker 9: nineties starting to cover Internet. It was the recognition that
Speaker 9: it was going to be the start of what's really
Speaker 9: going to be a forty to fifty year tech buildout.
Speaker 9: And I think what we're seeing today is just the
Speaker 9: next stage of that.
Speaker 8: It started in State College.
Speaker 9: And obviously, you know, I'm super happy that investors have
Speaker 9: to have supported me along the journeys.
Speaker 7: Dan, So what's the uh, what's the key issue pushback
Speaker 7: if any from your clients these days?
Speaker 4: Is it valuation?
Speaker 7: Is it just I'm just I've made my money, I'm
Speaker 7: taking it off the table here?
Speaker 4: What's the pushback?
Speaker 8: Yeah?
Speaker 9: I think evaluations, circuit of financing. Is there a two
Speaker 9: big defail moment open the eye and I think news
Speaker 9: are in the US try to trade negotiations parents, but
Speaker 9: look to me, it's like we'll have these white knuckle moments.
Speaker 9: But I said, I think techtocks are up twenty percent
Speaker 9: this year, but it's as wegin earning season in January
Speaker 9: and you get more into cap backs and get more
Speaker 9: I think that's going to be the key to this
Speaker 9: next stage.
Speaker 3: Are the tech broke? I'm going to ask a Paul
Speaker 3: Sweetey question. We got to go Dan, Are the tech.
Speaker 2: Broken to grow up and finally develop dividends and dividend
Speaker 2: growth height?
Speaker 9: Look, I mean a bench, but I don't think now
Speaker 9: because you want to focus on investments, right, and I
Speaker 9: think that to me, this is an arms race. It's
Speaker 9: ten thirty pm in the AI party goes to four am.
Speaker 9: Don't worry if there's some glass dropping the dance for.
Speaker 2: Okay, Dani's congratulations on the thank you initiative of your GIF.
Speaker 3: What was the number he brought in?
Speaker 4: It was like, I think there's like a billion dollars
Speaker 4: in THEIRS.
Speaker 3: One billion dollars for That's a nice number. Stay with us.
Speaker 2: More from Bloomberg Surveillance coming up after this.
Speaker 1: This is the Bloomberg Surveillance podcast. Listen live each weekday
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Speaker 1: with the Bloomberg Business app. You can also listen live
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Speaker 1: say Alexa play Bloomberg eleven thirty.
Speaker 2: Wendy Shower joins us. Now as we go, look at
Speaker 2: grebs there. If you do the AI thing like your students,
Speaker 2: and I do, Professor Schiller up at Brown University, It's
Speaker 2: something like Jefferson, a strict constructionist, worried the Constitution didn't
Speaker 2: grant power to buy territory. Let's start with the basics,
Speaker 2: as President Trump trying to buy territory in Greenland or Venezuela.
Speaker 10: Well, Tom and Paul and Lisa. Stephen Miller is one
Speaker 10: of his chief domestic advisors, said, yeah, they want to
Speaker 10: buy Greenland. They want to control Greenland somehow. And if
Speaker 10: they want to do that, at least the most famous
Speaker 10: precedent would indicate they need Congress's permission in a vote
Speaker 10: to authorize using US dollars to do that.
Speaker 3: Is that a Louisiana purchase.
Speaker 10: It is a Louisiana purchase, and we're going to buy
Speaker 10: a major territory. Now, you know, a lot of people
Speaker 10: don't know the scope of Louisiana purchase, how much land
Speaker 10: that was and why it was so important, you know,
Speaker 10: to go west and sort of opening that entire gateway,
Speaker 10: solidifying I think, US expansion.
Speaker 6: So it's really going.
Speaker 10: To have to be a justification when again, people are
Speaker 10: worried about things at home, the president seems to be focusing,
Speaker 10: with some exceptions, on matters abroad.
Speaker 7: Wendy, should we be surprised that Congress is giving the
Speaker 7: president a fair amount of leeway here on these international
Speaker 7: efforts in Venezuela, maybe Greenland, maybe some other areas.
Speaker 4: Should Congress be taking a larger role here?
Speaker 10: Well, you know, on Venezuela, you know, the President of
Speaker 10: States can take military action without talking to Congress, without
Speaker 10: telling Congress for some limited.
Speaker 6: Period of time.
Speaker 10: And you know, the technicalities of the War Powers Act
Speaker 10: is really boots on the ground, troops that are going
Speaker 10: to be there. You have about forty five days, then
Speaker 10: you have to ask permission again for forty five days.
Speaker 10: Then you need an authorization of military force like we
Speaker 10: had in Iraq.
Speaker 6: That's the rule, that's the law.
Speaker 10: The president seems to find ways of exercising presidential.
Speaker 6: Power without following the law.
Speaker 10: But right now, he is within the bounds of presidential
Speaker 10: power in Venezuela.
Speaker 6: Greenland's totally different.
Speaker 10: And you're seeing Republican senators jump, you know, really get
Speaker 10: out there very quickly.
Speaker 6: And say, we're not buying Greenland. What are we doing?
Speaker 6: We don't need Greenland. This doesn't seem to be what
Speaker 6: we should be focusing on. So you've got some prominent
Speaker 6: Republican voices in the Senate saying, no, we're not going
Speaker 6: to approve this.
Speaker 10: So I don't know how he moves money from the
Speaker 10: Treasury somehow to buy Greenland without that support, but it's
Speaker 10: a bigger matter. Republicans don't love to get involved in
Speaker 10: these conflicts without any endgame, except, of course, a rock
Speaker 10: under George W.
Speaker 3: Bush.
Speaker 10: So we're going into an election year. How do you
Speaker 10: tell your constituents this is what we should be doing.
Speaker 10: And Trump hasn't given them a really clear explanation they
Speaker 10: could use with their constituents.
Speaker 7: So politically, how does this play in an election year
Speaker 7: for the Republicans and the Democrats? Here with President Trump,
Speaker 7: like many presidents do here at the stage of their
Speaker 7: you know, in a second term, focusing on international efforts,
Speaker 7: how does this play domestically, do you thinkolitically well.
Speaker 10: Republicans have argued for limited government, they supported those they
Speaker 10: supported cutting governments.
Speaker 6: You know, spending can go arise. We saw in Minnesota.
Speaker 10: You know, things if they're not watched, we can lose
Speaker 10: a lot of money to inefficiency and corruption. That's a
Speaker 10: winning message with most voters. But how does that improve.
Speaker 6: Voters' lives right now?
Speaker 10: And the Democrats have the task without being in power
Speaker 10: of saying, if you give us power, we will make
Speaker 10: your life better on these dimensions, and Republicans now are
Speaker 10: sort of saddled with explaining how they can control the
Speaker 10: entire federal government and not make things better for people.
Speaker 6: And going into Greenland and Venezuela doesn't really show voters there,
Speaker 6: So that both parties face some challenges. They're kind of
Speaker 6: inverse of each other.
Speaker 2: Want to show here with us with Brown University, can't
Speaker 2: say enough about our academic effort and new treats out
Speaker 2: an inequality across states in America.
Speaker 3: At Cambridge, we're celebrating that as well. Paul.
Speaker 2: In the old days, you and I studied the Louisiana purchase,
Speaker 2: you know, before Duke basketball game, we read like six
Speaker 2: pages in the cliff notes, David Rubinstein. Now at the archives,
Speaker 2: you go in you can see the actual photo images
Speaker 2: of the seven page document. You can click and get
Speaker 2: a transcription. So here's where we're heading, Professor Schiller, I'm
Speaker 2: making this up, folks. Treaty between the United States of
Speaker 2: America and the Kingdom of Denmark, the President of the
Speaker 2: United States of America and the First Council of the
Speaker 2: Kingdom of Denmark and the name of the Danish people,
Speaker 2: designed to remove all soorts of misunderstanding relative to the
Speaker 2: food of happiness and all the rest of it. Wendy,
Speaker 2: we are we heading towards, you know, almost a Versailles
Speaker 2: hallimerror's document signing with Denmark.
Speaker 6: Well again, you know, to get we know this from history.
Speaker 6: Presidents need the Senate to approve treaties. That's the rule
Speaker 6: that's in the Constitution. You know, you can't really get
Speaker 6: around that.
Speaker 10: So he could sign a document and they can have
Speaker 10: some ceremony, but it wouldn't have any standing unless the
Speaker 10: Senate of roofs the treaty.
Speaker 6: And we know we know.
Speaker 10: That Senates have rejected treaties in the past, as Jimmy
Speaker 10: Carter on Sault too. So you can get rejected, and
Speaker 10: certainly I think this is the thing that.
Speaker 6: The Republicans want to avoid.
Speaker 10: The Republicans in Congress now are running from behind to
Speaker 10: keep control of the House and maybe even the Senate,
Speaker 10: and they need something to help them get back into
Speaker 10: the game. You know, having to attend a signing ceremony
Speaker 10: on purchasing Greenland is not going to get the Republicans
Speaker 10: back in the game to hold power in twenty twenty six.
Speaker 3: Well, this is the Detroit Lions blue button. Excuse me, Paul,
Speaker 3: this is a huge deal. The Senate, we don't know.
Speaker 3: As Professor Schulwood just said, it's up for grabs.
Speaker 7: It is so again, we're the news is coming fast
Speaker 7: and Florida furious.
Speaker 4: Wendy.
Speaker 7: We had this Ice Minneapolis shooting kind of raising questions
Speaker 7: just about Ice in general and how Ice interacts with
Speaker 7: citizens and non citizens. Is this a political liability for
Speaker 7: the president or is this in fact play up to
Speaker 7: kind of what his base is looking for.
Speaker 10: Well, I mean, his core base supports him really no
Speaker 10: matter what he does. And remember he's not actually running
Speaker 10: for anything in November. But we've seen with George Floyd
Speaker 10: in Minneapolis in particular, also how this event could catalyze
Speaker 10: and organize what have been resistance movements across the country
Speaker 10: to ICE and the placement of the National Guard in
Speaker 10: major cities, and that can really bring it all together
Speaker 10: under the umbrella of overreach and overstepping power.
Speaker 6: We know that the vast majority of Americans are the vast.
Speaker 10: Majority sixty three percent or so disapprove of ICE tactics,
Speaker 10: So this is not going to help that number with
Speaker 10: Republicans and Independents are in that mix as our Republican voter.
Speaker 10: So you have to ask yourself, if your Congress, do
Speaker 10: you want to defend these measures consistently?
Speaker 6: That the real power Trump has now still.
Speaker 10: Over the Pulkans and Congress is the primaries. He can
Speaker 10: swoop in and shift the primary. At least we saw
Speaker 10: that in the fall. If he can still do that,
Speaker 10: they have to stay loyal to him because they don't
Speaker 10: want him to come into their backyard and get them
Speaker 10: a primary challenge that they can't win.
Speaker 2: Wendy, thank you so much, Professor Schuller of Brown At University.
Speaker 3: Stay with us.
Speaker 2: 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 listen
Speaker 1: live on Amazon Alexa from our flagship New York station,
Speaker 1: Just Say Alexa, Play Bloomberg eleven thirty with our newspapers
Speaker 1: Lisa Manteto.
Speaker 11: Okay, so we've all heard about AI taking over a
Speaker 11: lot of the mundane tests at work, right, the stuff
Speaker 11: you don't want to do. The thought is that it's
Speaker 11: going to for you to concentrate on the important stuff, right,
Speaker 11: to focus on that. But some executive Attollia Wall Street Journal,
Speaker 11: there is a downside to that, and they say that
Speaker 11: that quote busy work is what gives your brain a break,
Speaker 11: so it prevents burnout because you're taking a break and
Speaker 11: that break from doing all those mony, you know, from
Speaker 11: doing those tasks, it makes you think more and it
Speaker 11: gives you these creative sparks. So they're saying you need
Speaker 11: the conversation in the kitchen.
Speaker 3: Last study is that what it's come up.
Speaker 11: So they're saying you need that busy work to spark
Speaker 11: some creative you know energy.
Speaker 3: Empty the dishwasher, Yes.
Speaker 11: Like that's mundane work, and she can she can get
Speaker 11: some great creative energy from doing the dish from emptying
Speaker 11: the dishwasher. But that's where there's it's a different side
Speaker 11: to it because we've always you know, heard, you know
Speaker 11: how the benefits of you know, getting rid of the
Speaker 11: mundane task.
Speaker 6: But they're saying we need them.
Speaker 7: See, I'm kind of a task granted person as opposed
Speaker 7: to the white on the weekend, the whiteboard all that.
Speaker 4: No, thank you, No you don't.
Speaker 3: You don't make a list on the weekend.
Speaker 4: No no, but I just list.
Speaker 3: No no.
Speaker 2: My father was the absolute worst, and because of him,
Speaker 2: there's never been a list.
Speaker 4: Buy and low, sell high. That's I can follow that.
Speaker 6: There you go, There you go.
Speaker 11: Okay, we know food costs are on the rise, right,
Speaker 11: we always talk about that. But Bloomberg has this interesting
Speaker 11: article on the terminal. You got to check it out.
Speaker 11: It's saying that shum, some chefs they're turning to trash
Speaker 11: to create new menus. Now stay with me. Okay, I'm
Speaker 11: not talking about they're going in the garbage. Okay, they're
Speaker 11: not going in the garbage, but they're doing these zero
Speaker 11: waste menus. So they're using ingredients that they would normally
Speaker 11: throw out like things like mushroom powder made from stems trimmings,
Speaker 11: But you wouldn't know by the price because they're creating
Speaker 11: these tasting menus that.
Speaker 6: Cost one hundred and sixty dollars.
Speaker 11: Nice, So they're making a profit on things that they
Speaker 11: would have thrown out. So it's a different look into
Speaker 11: how companies are dealing with the increase of food prices.
Speaker 6: But there's a lot of waste.
Speaker 11: Like there's a report it shows more than one billion
Speaker 11: tons of food.
Speaker 6: Gets tossed in the world each year. Restaurants about thirty
Speaker 6: percent of that total.
Speaker 11: A lot of it is, you know, from people when
Speaker 11: you're done eating, you just kind of throw your food out,
Speaker 11: but a lot of it is from stuff that they
Speaker 11: could reuse that they choose not to.
Speaker 2: Well.
Speaker 7: I think part of the problem is just in the US.
Speaker 7: I noticed it is just thes are just out of
Speaker 7: control and they're embarrassing.
Speaker 4: It's ridiculous, you know, I mean, now we're we ordered,
Speaker 4: we split it, and we split what we ordered.
Speaker 2: Last night, major you shout out in New York City,
Speaker 2: they led the way. City Harvest has been brilliant in US. Yes,
Speaker 2: is a great charity. What else do you give me
Speaker 2: one more.
Speaker 11: Okay, I'll give you one more because we were talking
Speaker 11: about you know, the someone mentioned earlier, the dry January, right,
Speaker 11: people drinking a lot less. Okay, so this is the
Speaker 11: sober party girl revolution.
Speaker 5: Okay.
Speaker 11: This is in the New York Times. They had like
Speaker 11: over one hundred people who went to this New Year's
Speaker 11: place called the Maze. You know, those are like those
Speaker 11: private clubs that people pay memberships for.
Speaker 6: But the difference with this.
Speaker 11: One is that it does not serve alcohol. So it
Speaker 11: costs about their annual dues or by three three hundred
Speaker 11: dollars a year, you have a one time fee of
Speaker 11: about fifteen hundred dollars. All that you get, you know,
Speaker 11: the fancy chairs, and you get the nice spaces and
Speaker 11: the fancy restaurant dishes, but you get no alcohol. And
Speaker 11: they're saying this is the trend. People are drinking less alcohol,
Speaker 11: and they want to go to these places where they
Speaker 11: don't have to worry about other drunk people, you know,
Speaker 11: being an issue.
Speaker 4: What percentage of them are all gummied up when they go.
Speaker 6: Into today That was not mentioned in the article.
Speaker 11: Yeah, but they're just saying that they want members to
Speaker 11: remain sober on site.
Speaker 4: You don't want any for drinking on their.
Speaker 11: Club, and people are paying to have this membership over
Speaker 11: three thousand.
Speaker 4: Dollars a year.
Speaker 2: The newspaper's Lisa Mateo there with another lecture for Time
Speaker 2: King greatly appreciate that this morning.
Speaker 1: This is the Bloomberg Surveillance Podcast, available on Apple, Spotify,
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