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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: Surveillance Podcast. Catch us live weekdays at seven am Eastern

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Speaker 1: on Apple CarPlay or Android Auto with the Bloomberg Business App.

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Speaker 1: Listen on demand wherever you get your podcasts, or watch

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Speaker 1: us live on YouTube.

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Speaker 2: No one better than Anastasia Amroso, chief investment strategist at ICAP,

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Speaker 2: who was trumpeting large cap growth participate when it was

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Speaker 2: a very lonely call. Let's recapitulate right now, I'm hearing

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Speaker 2: people come over to the Amoroso side. Is it still

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Speaker 2: large cap growth in tech? Look?

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Speaker 3: I think so. I think back in March we were

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Speaker 3: talking about the sell off being temporary, and of course

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Speaker 3: you know you were now in late May and here

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Speaker 3: we are. The SAP is up, and actually we talked

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Speaker 3: about software, and software is up. AI software in particular

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Speaker 3: is up about twelve percent for the year. So yes,

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Speaker 3: I think the reasons are still plentiful to continue to

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Speaker 3: stick with stocks. And you know, Tom, one of the

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Speaker 3: things you have to do is you'll have to look

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Speaker 3: at the economy. And while the sentiment around the economy

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Speaker 3: fell apart, the hard economic data never did so. As

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Speaker 3: a result, we're still looking at two point three percent

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Speaker 3: GDP growth this quarter when everybody was worried about the

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Speaker 3: tariff impact. So that's the first thing. The second thing

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Speaker 3: is the determination you just heard from Peter Navarro to

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Speaker 3: cut those deals and continue to negotiate is absolutely there.

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Speaker 3: So as long as that's the drum beat, then I

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Speaker 3: think we have to discard any sort of data that

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Speaker 3: goes against that. And then the last thing I would say,

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Speaker 3: tom you know, tomorrow we get the core PC inflation report,

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Speaker 3: which is projected to be about two and a half percent,

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Speaker 3: and whether it's oil prices that are lower, whether it's

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Speaker 3: wages that are lower, all of that is supportive. So

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Speaker 3: I still think investors are not tapped out. It's not

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Speaker 3: max bullish by any means. So I think we add here.

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Speaker 2: I have been brought up the three point ex trillion

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Speaker 2: of cash Paul out there.

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Speaker 4: Yep, Yes, it's always been out there. I mean earlier

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Speaker 4: this year it was out of the US, out of cyclicals,

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Speaker 4: out of tech. Now it seems to be if I

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Speaker 4: look at the S and P five hundred, if I

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Speaker 4: look at nastacy, it seems to be that that trade's

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Speaker 4: getting reverse ship hereople coming investments, coming back to the US,

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Speaker 4: back into cyclicals, back into tech. Was it just a

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Speaker 4: what was that?

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Speaker 3: Oh, there's a lot of discussion around that. And first

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Speaker 3: of all, the month of May has all been about

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Speaker 3: these star reversals back into the US tech and back

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Speaker 3: into the US and back into cyclicals. But if you

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Speaker 3: actually look at the performance here to date, it's the

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Speaker 3: defensive sectors like utilities, for example, that lead the SMP.

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Speaker 3: They're up about five or six percent. The semiconductors, for example,

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Speaker 3: are down about five to six percent. So I don't

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Speaker 3: think it's actually too late for this rotation trade. And look,

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Speaker 3: we were never in the camp of the US exceptionalism

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Speaker 3: being over, because what's not over, for example, is the

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Speaker 3: fact that we have one of the most constructive tax

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Speaker 3: policies relative to our developed market peers. The fact that

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Speaker 3: the corporate tax rate in the US is twenty one

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Speaker 3: percent and with some write offs, maybe is the effective

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Speaker 3: one is even eighteen percent. That is a very constructive

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Speaker 3: environment to do business in the United States, and obviously

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Speaker 3: that's what the administration is trying to foster through terror

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Speaker 3: policy as well.

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Speaker 4: Do we have to bring the evaluation discussion back on

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Speaker 4: the table because boy, when the market's sold off, a

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Speaker 4: lot of folks are saying, wait, eighteen times earnings, I'm

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Speaker 4: going to go in and buy this thing. But now

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Speaker 4: we're back, you know above twenty times, How do you

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Speaker 4: think about earnings? Because there still may be some earnings risk.

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Speaker 3: In this market, right, So a few weeks ago we

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Speaker 3: sort of had when we didn't know what is likely

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Speaker 3: to happen with terrorists, we sort of had this binary risk.

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Speaker 3: We either have to price in a recession and therefore

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Speaker 3: recession or earnings, which could have taken us well, it

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Speaker 3: has taken us as low as five thousand, but could

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Speaker 3: have taken us lower if we also had to assign

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Speaker 3: a recession in multiple. Now we don't have to assign

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Speaker 3: a recession in multiple, and we actually have to focus

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Speaker 3: on the earnings not only this year but next year,

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Speaker 3: which are expected to be around three hundred and seven dollars.

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Speaker 3: So if you apply the existing multiple to that, you

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Speaker 3: actually do get north of six thousand on the S

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Speaker 3: and P five hundred. And that's why to Tom's point,

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Speaker 3: I say, large cap stocks are certainly worth staying with.

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Speaker 2: What does free cash flow look like? In use of cash?

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Speaker 2: I mean back when you were lonely and correct. The

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Speaker 2: answer is the free cash flow came in and I'm

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Speaker 2: hearing a lot of fancy Well, it's not going to

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Speaker 2: be this first second derivative, Da da da da da.

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Speaker 2: Do you see sustained free cash flow by the market leaders?

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Speaker 3: I mean, look, I do, and the use of free

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Speaker 3: cash flow I think certainly would benefit the share repurchases

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Speaker 3: and buybacks, and Tom, that's what we're seeing in the market.

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Speaker 3: We actually have some of the record authorizations for corporate

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Speaker 3: buybacks and that is such a strong presence in the

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Speaker 3: market as well, which is why I say market participants

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Speaker 3: are not tapped out. It's individual investors, it's hedge funds,

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Speaker 3: it's CTAs, but it's also corporate is buying back those shares. Look,

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Speaker 3: the beauty of the setup, Tom, is a corporate margins

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Speaker 3: are in your highs and so there's a lot of

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Speaker 3: room to absorb the potential negative impact of tariffs.

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Speaker 2: Just quickly here, how lonely do you feel now? Is

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Speaker 2: everybody in the AMRO support I think it's sort of

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Speaker 2: a pretty lonely call. There's a lot of fear out there, right,

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Speaker 2: you know.

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Speaker 3: I still think there's a degree of fear out there.

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Speaker 3: But I'll just quote these stats you know that you know,

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Speaker 3: back in April you had about sixty six percent of

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Speaker 3: investors that were bearish. That is not the number today.

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Speaker 3: It's probably closer to thirty percent now, couple. It's a

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Speaker 3: big reversal. A couple of weeks ago you probably had

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Speaker 3: only twenty percent of investors that were bullish. Today that's

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Speaker 3: about thirty seven percent, But it's not fifty It's not

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Speaker 3: half of the investors that we're in the bullish camp

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Speaker 3: to start the year. So I think we need a

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Speaker 3: few more to join the party.

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Speaker 2: Don't be a stranger. Come back again to sure of

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Speaker 2: visits today. Anastasia am Aroso with that capital, She's been

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Speaker 2: courageous about long in the market for years.

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Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live

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Speaker 1: weekday afternoons from seven to ten am Eastern Listen on

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Speaker 1: Applecarplay and Android Auto with the Bloomberg Business app, or

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Speaker 1: watch us live on YouTube.

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Speaker 2: Now joining US d ives in videos not Cisco right.

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Speaker 5: It's almost an insult to in video when you say

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Speaker 5: look because the reality is that it's a fourth Industrial

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Speaker 5: revolution and it's being led by godfather of AI, Jensen

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Speaker 5: and video. There's only one chip in the world, few

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Speaker 5: on this and that's why I believe four trillion and

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Speaker 5: eventually five trillion is where we're going to see for in.

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Speaker 2: Okay, in the ives perspectives on this page forty two

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Speaker 2: risk factors. What's the risk factor for the certitude this

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Speaker 2: thing's going to work out?

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Speaker 5: Look, I mean when you think about China, and obviously

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Speaker 5: that's all factored in here. I mean, anything that gets

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Speaker 5: a little positive in terms of moves on trade and

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Speaker 5: tariffs between US and China is ultimately that that to

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Speaker 5: me right now, the biggest risk is just trying to

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Speaker 5: and I think Jensen called it out shout across about

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Speaker 5: Trump administration. You're essentially giving away the China business because

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Speaker 5: of the AH twenty to Huawei, and that's the biggest risk.

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Speaker 5: But tom it just comes down to, like it is

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Speaker 5: Jensen and Nvidia's world. Everyone else is paying rent when

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Speaker 5: it comes to AI.

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Speaker 4: So what was the biggest takeaway from the earnings?

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Speaker 5: Last night?

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Speaker 4: It stocks up five six percent this morning, what's the

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Speaker 4: street taken away from it?

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Speaker 5: Was a staggering quarter in a bullish way relative to

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Speaker 5: the demand. I believe right now, demands that Truman supply

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Speaker 5: eight to one.

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Speaker 4: You got SOPs supplying supply eight to one.

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Speaker 6: Eight to one.

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Speaker 4: Wow, So what where does this company go? What does

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Speaker 4: Nvidia do now to kind of take advantage of that

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Speaker 4: demand out there?

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Speaker 5: It's when you think about autonomous robotics physical AI. Eventually

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Speaker 5: keen with a robot, you know, in his in his palace.

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Speaker 2: You've been talking to Mikey.

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Speaker 5: Look, this is the only way it's fueled is by Nvidia.

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Speaker 5: So to me, now, the AI revolution coming to Middle

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Speaker 5: East sovereigns they want to be online.

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Speaker 2: It's on a unit basis. They're selling these things, right,

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Speaker 2: do you have a linear I mean, I got seventy

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Speaker 2: seven percent up free cash flow, but these numbers we've

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Speaker 2: never seen this. How do you extrapolate the unit growth

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Speaker 2: into the future. Forget about price, forget about tech boys

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Speaker 2: with their fancy shoes and you going out to all

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Speaker 2: the conferences you go to on a unit basis? Is

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Speaker 2: it a linear extrapolation?

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Speaker 5: Look, it's it's unprecedent in terms of what we've seen.

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Speaker 5: But to give granted, but if you look, it's almost

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Speaker 5: it's linear. But to the point that right now you

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Speaker 5: only have three percent of enterprises in the US that

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Speaker 5: have actually even gone down the AI path. So when

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Speaker 5: you think about the demand trajectory and where we ultimately

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Speaker 5: see this playing out, I mean you will be on

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Speaker 5: a trajector to ten dollars today.

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Speaker 2: Paul knows it. Cold pract and gamble. What in God's

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Speaker 2: name is shamp vellow ballsom shampoo. What are they gonna

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Speaker 2: do with AI?

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Speaker 5: They're gonna look at marketing penetration and customers. They're gonna

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Speaker 5: look at all their data, probably seventy percent of it

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Speaker 5: that they basically they have not analyzed, and they're gonna

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Speaker 5: come up with eight, ten, fifteen use cases for how

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Speaker 5: AI agents could be deployed. Which is bullish from Microsoft,

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Speaker 5: bullish from MESSI of AI pound tier, bullish ultimately for

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Speaker 5: the rest of the food chain.

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Speaker 2: Well, I looked at the chart yesterday. I mean the

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Speaker 2: quiet story at Q two is the moonshot in Microsoft

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Speaker 2: maybe record highs this morning, yep, yep.

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Speaker 4: So Nvidia expec's revenue about forty five million in forty

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Speaker 4: five billion in the second fiscal quarter despite new export

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Speaker 4: restrictions costing about eight billion. That's a headwind.

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Speaker 5: Okay, let's just talk Apple, And there's why the stocks

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Speaker 5: up Apples to Apples Street, which is say April second,

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Speaker 5: you know libration, they didn't happen streets at forty eight billion, yep, okay,

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Speaker 5: Apples Apples, it would have been fifty three a five

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Speaker 5: billion piece. So Paul, that to me, it's when but

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Speaker 5: that speaks apples to apples, and everyone recognizes, I mean

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Speaker 5: you are you're looking at something that's really been unpressed

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Speaker 5: and I had relative to what we're seeing with them.

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Speaker 2: Can I on it?

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Speaker 4: Can my chip guys do a workaround whatever the US

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Speaker 4: restrictions are?

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Speaker 5: Well, that's that the market's basically reading through this saying

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Speaker 5: at one point you're gonna have to come to the table.

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Speaker 5: Part of negotiations. When you get chips on the table,

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Speaker 5: it's in video, it's Apple. When you think about trum administration,

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Speaker 5: come to the table. And and that's something where there

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Speaker 5: could be some work around eight billion that they've given away,

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Speaker 5: maybe half of that they get back.

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Speaker 2: Okay, Apple. Unfortunately the chart doesn't look like Microsoft. I

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Speaker 2: got Apple right now down twenty two percent from the peak.

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Speaker 2: We don't have time for the Why how does Tim

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Speaker 2: Cook turn it around?

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Speaker 5: I mean he this is continues to be a hall

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Speaker 5: of fame moment in terms of how he's now the

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Speaker 5: get moment.

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Speaker 2: Come on, Paul told me to buy this thing at

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Speaker 2: the beginning of the year. I'm down twenty, but not

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Speaker 2: a hall of fame moment.

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Speaker 5: It's a hall of fame moment relative to the China

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Speaker 5: tariffs and getting around in ultimately India being the life raft.

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Speaker 5: You're gonna have sixty five seventy percent of assembly coming

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Speaker 5: out of India. And I think, look, no company is

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Speaker 5: more caught in the storm when it comes tariffs than

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Speaker 5: Cook and Cooper. Tina will be at WWDC. It's the

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Speaker 5: start of that broader AI strategy. I first said that

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Speaker 5: last year, No and Tom. If you take out tariffs,

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Speaker 5: this is a stock that's forty to fifty dollars higher.

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Speaker 5: So my view is that Cook is ten percent politician,

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Speaker 5: nineteen percent CEO. He'll navigate around this. And I think

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Speaker 5: we city are six months from now. The name that

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Speaker 5: I think is way miss priced is Apple.

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Speaker 4: Elon's going back to work. It seems like, what do

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Speaker 4: you expect it in the next six six months until.

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Speaker 5: I mean the dark chapter is over right, and and

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Speaker 5: I think it's bullet because now the autonomous and robotics

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Speaker 5: feature is here. And ultimately, look this, it was a

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Speaker 5: fork in the road moment he bet on Tasla, And

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Speaker 5: now I think, even though there is still some brand

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Speaker 5: damage that remains, we weave the path through to a

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Speaker 5: two trillion dollar mark out for Tasla is now on

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Speaker 5: the table.

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Speaker 2: Lisa, if your daughter in her prom, if her date

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Speaker 2: shows up in a tuxedo, that's that pink.

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Speaker 7: That's the trend.

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Speaker 4: Now that's what the kids are doing.

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Speaker 2: The kids are doing. The kids going to show up

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Speaker 2: in tuxedo with.

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Speaker 7: Like no everything like bananas, pineapples, like whatever on this ser.

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Speaker 2: Toxedo.

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Speaker 5: Because I keep thinking, I keep waiting for the keen

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Speaker 5: pink boats tie. We know, I think it's I think

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Speaker 5: with AI it could be coming with.

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Speaker 2: Today they said ives was here and I went with pink.

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Speaker 2: But I think you look I did.

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Speaker 5: It's phenomenal in the pink bow tie. I'm just I'm

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Speaker 5: just saying.

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Speaker 4: You know, I just give my charity yesterday you did

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Speaker 4: what Yeah my tux seedo that had I had worn.

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Speaker 7: In twenty years.

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Speaker 6: Okay, that's why.

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Speaker 2: Yeah, the difference, Paul, Paul, you would still get into

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Speaker 2: the tex exactly my tuxedo from twenty years ago.

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Speaker 5: It happened single best buy Apple, single best buye Here

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Speaker 5: to me, it's Tesla, given the given the autonomous path,

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Speaker 5: and must recommitted that continues to be front and center.

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Speaker 2: You're pro. I'm an amateur. I don't buy it. I

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Speaker 2: just can't get there, Paul, can you get there?

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Speaker 6: I can't bet against Elon in this stock.

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Speaker 4: It's just been.

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Speaker 2: It's just been.

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Speaker 4: It's been amazing story. And if he's back, if he's

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Speaker 4: really back, that's good for that He's back.

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Speaker 2: That's the way we rolled. Dan's Thank you so much.

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Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday

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Speaker 1: starting at seven am Eastern on Apple Corplay.

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Speaker 8: And Android Auto with the Bloomberg Business App.

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Speaker 1: You can also listen live on Amazon Alexa from our

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Speaker 1: flagship New York station, Just say Alexa, play Bloomberg eleven thirty.

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Speaker 2: It is the most important interview of the day, folks,

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Speaker 2: Riveting America is with Andrew Gilbert joining us. Now he's

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Speaker 2: with ECP, but forget about that, far far more. Andrew

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Speaker 2: Gilbert has a massive cred out of stern On Data Centers. Yep,

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Speaker 2: you need to be neuutilities. I have seen the collective's

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Speaker 2: amount of hot air from people that didn't take thermodynamics

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Speaker 2: now is off the chart. Cut to the chase. Is

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Speaker 2: retail Electric America going to pay for Microsoft or in

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Speaker 2: Video's data center electric bill?

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Speaker 6: Well, first, thanks for having me on.

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Speaker 9: Happy to be here in really exciting time in our

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Speaker 9: industry for nuts for twenty five years, no growth, and

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Speaker 9: all of a sudden, we're on TV here after Nvidia earnings.

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Speaker 2: It's better than me, so it works. Are we going

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Speaker 2: to pay for nvidious data center?

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Speaker 7: Yeah?

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Speaker 6: So across across it's a great question.

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Speaker 9: Across the country, regulators are trying to figure out how

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Speaker 9: to make those companies pay for it, How to make Microsoft,

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Speaker 9: Amazon pay for it.

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Speaker 2: Confidence they will, they will, and.

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Speaker 9: I think they're already finding a better way to do

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Speaker 9: that in competitive markets. So regulated utilities want you and

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Speaker 9: I to pay it on our content bill, But competitive

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Speaker 9: markets it's different. Companies like ours invest in competitive generation

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Speaker 9: and we take the risk. And I think that's the

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Speaker 9: big difference between regulated areas like the southeast of the

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Speaker 9: country and competitive markets like the Northeast and Texas.

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Speaker 4: So how do we power all these data centers. What's

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Speaker 4: the what's the path forward? Because I keep seeing Nvidia

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Speaker 4: and other companies from Microsoft and that we're building, We're building,

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Speaker 4: we're building, we're building. You've got to power this stuff.

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Speaker 4: I mean, I watch landman, I know how the oil

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Speaker 4: and gams industry works.

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Speaker 2: Oh, here we go.

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Speaker 5: Talk to us.

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Speaker 6: How we're going to power this stuff with everything?

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Speaker 2: Okay?

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Speaker 9: This this is an industry that really again hasn't had

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Speaker 9: much demand growth, all of a sudden has an explosion

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Speaker 9: of it, and so we're going to need electricity from

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Speaker 9: all sources. Gas is going to have to be a

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Speaker 9: big component of it. Renewables as well, and that stuff

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Speaker 9: faces challenges with with tariffs and protectionist policies, with tax

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Speaker 9: credit risk on the renewable side. On the gas side,

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Speaker 9: it's just industry that for a while was sort of

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Speaker 9: adapting to almost no growth. So companies like ge Vernova

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Speaker 9: and Siemens are ramping up production capacity, but it's not

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Speaker 9: there yet, so it's going to take time.

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Speaker 4: Is it a public private partnership here? What's the regulatory

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Speaker 4: environment that you guys in on the financial side.

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Speaker 5: Need to see?

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Speaker 9: Uncertainty has been I think used a lot in the

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Speaker 9: show and many shows recently. We need policy certainty. The

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Speaker 9: industry is ready to make investment the investments needed the industry.

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Speaker 4: What is the industry? Is it just the power industry?

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Speaker 2: Is it old?

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Speaker 4: Is it exceon Mobile?

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Speaker 2: Is electric?

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Speaker 9: It's competitive generators like Constellation, Vistra Energy Talent companies like

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Speaker 9: that are the companies that going to move more quickly

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Speaker 9: than regulated utilities. But regular utilities, the dominions, the southerns,

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Speaker 9: they will be part of this too.

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Speaker 2: Ge Vernova GV, I really don't know what it is.

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Speaker 2: All I know is mister Colp's genius. I got a

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Speaker 2: moonshot one fifty to four eighty five. Is that the

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Speaker 2: future of your business, whether it's private you know, like

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Speaker 2: your shop like ECP or public utilities boring Grammar, stock dominion.

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Speaker 2: I need to divo it an increase. Is this total

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Speaker 2: return of ge Fornova the future?

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Speaker 9: It's all about the shortage of gas turbines. That's what's

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Speaker 9: driving gev's performance and that's what we're seeing.

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Speaker 2: Yeah, but guess turbines aren't spinning windmules going around. Don't

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Speaker 2: give me this renewable energy. Song and dance is traditional energy.

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Speaker 2: Dare I say coal going to power Microsoft's need for

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Speaker 2: the fourteenth data center.

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Speaker 9: Colon not Cole will survive a bit longer, but it's

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Speaker 9: declining and that's not going to change. Gas has really changed.

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Speaker 9: Gas has been the biggest kind of placement of coal,

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Speaker 9: and that's going to accelerate because data centers need twenty

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Speaker 9: four to seven electricity. Wind in solar don't provide that,

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Speaker 9: but wind in solar are cheap and that they can

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Speaker 9: be constructed quickly. So we need all of it to

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Speaker 9: meet this challenge. You can't do it with one feel source.

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Speaker 2: See that.

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Speaker 4: That's what I've understood.

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Speaker 1: You got to have it all.

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Speaker 4: Talk to us about nuclear I like the modular nuclear things.

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Speaker 4: Pop that baby right next to a data center. Let

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Speaker 4: it power it is that realistic?

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Speaker 9: Well, if you're willing to pay I don't know, seven

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Speaker 9: times the price of gas, maybe really and we think

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Speaker 9: it will be a factor that cost will come down

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Speaker 9: over time, but it's not ready two years from now.

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Speaker 9: It's probably ten years from now.

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Speaker 2: Man, I thought that was a cool, Well, this is fascining.

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Speaker 2: He's gonna be with us for the next four hours.

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Speaker 2: Andrew Gilbert with us. He's partner at ECP. We've been

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Speaker 2: dying to do this. Palls in the meeting at three am.

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Speaker 2: When are we going to do data centers? We're doing

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Speaker 2: it right now. Are the tech companies open or are

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Speaker 2: they opaque about their plan? It's like they're like, you know,

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Speaker 2: we have to keep our image jump. If you know,

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Speaker 2: Cooper Tino, they're out there wearing sneakers and you know,

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Speaker 2: you know they're Lulu Lemon and all that. Are they

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Speaker 2: Are they transparent about their electrical demand needs?

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Speaker 6: Well, what's we mentioned uncertainty.

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Speaker 9: What's certain is the top five or six companies are

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Speaker 9: going to spend four hundred million dollars a year on

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Speaker 9: this stuff. And that's good and that's going to drive

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Speaker 9: electricity demand growth.

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Speaker 6: Yes, per year.

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Speaker 9: On the on the opacity, sure, it's hard to get

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Speaker 9: projects connected. So if you're a meta and you have

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Speaker 9: a two gigawatt need, you're going to apply for projects

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Speaker 9: in different parts of each market and hope that one

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Speaker 9: of them kind of gets service, gets connected. So you've

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Speaker 9: got to make sure. You've got to have contingency plans.

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Speaker 9: So I think they're doing some of that. I think

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Speaker 9: they're becoming more transparent.

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Speaker 4: You're thirty eight years old, dude, how did you You

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Speaker 4: guys are doing some serious stuff at ECPs. What's the

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Speaker 4: focus of what you guys are doing. You're investing equity

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Speaker 4: credit for power generation? Where's the where's the next five years?

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Speaker 9: As I mentioned before, this industry was even the electricity

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Speaker 9: I think is the most exciting commodity in the world.

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Speaker 6: Nobody cared about it three years ago.

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Speaker 2: I've seen you at a bar. The whole bar goes

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Speaker 2: to sleep when you start talking gigawatts.

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Speaker 6: But that is our focus, and it's an industry all

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Speaker 6: of a sudden is growing.

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Speaker 4: Is this an administration that wants to support smart energy development,

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Speaker 4: whether it's fossil fuels or green I hope.

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Speaker 2: So. Okay, how'd you react when Spain went dark? To

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Speaker 2: me the heart of the matter. You know, I did

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Speaker 2: a little bit of the act. Yes, I survived thermodynamics, folks,

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Speaker 2: not quantum mechanics. But that's a different story. Okay, great

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Speaker 2: Spain goes dark because of the grid and the rap is.

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Speaker 2: I'm speaking out of turn, folks, a bunch of touchy

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Speaker 2: feely theory. How does America avoid apearch black Spain for

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Speaker 2: two days?

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Speaker 9: I think it's about paying and compensating generators for reliability.

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Speaker 9: A big challenge in the electricity market is the capacity

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Speaker 9: that's not needed most of the time, but is needed

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Speaker 9: in that five percent scenario. And you've got to make

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Speaker 9: sure those those units are compensated, and they're starting.

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Speaker 2: To be and honor Dan Fuss, Boston, Looma's sales. Can

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Speaker 2: Quebec Hydro come to the rescue. Can the Canadians be

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Speaker 2: a data center conduit to keep us in or is

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Speaker 2: it just too far to get it to some data

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Speaker 2: center in French Hills, Arkansas?

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Speaker 9: They need they need it up there too, need it

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Speaker 9: up there up there, especially during the winter. So it's

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Speaker 9: it's not twenty four to seven reliable type type generation,

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Speaker 9: which is what we need now.

439
00:21:39,720 --> 00:21:42,560
Speaker 2: Lisa emails in, should I put solar panels on my

440
00:21:42,680 --> 00:21:43,400
Speaker 2: garage roof?

441
00:21:44,400 --> 00:21:47,760
Speaker 9: Maybe maybe losing that tax credit soon to do that

442
00:21:47,840 --> 00:21:49,240
Speaker 9: so it could get a little bit more expensive.

443
00:21:49,960 --> 00:21:54,000
Speaker 2: Should we have the text credit? Yes, it's radio. You

444
00:21:54,080 --> 00:21:54,560
Speaker 2: got to talk.

445
00:21:54,720 --> 00:21:57,160
Speaker 4: What's the I mean, just real quickly, what's the what's

446
00:21:57,240 --> 00:22:00,879
Speaker 4: the next investment you guys want to make? Where do

447
00:22:00,920 --> 00:22:02,800
Speaker 4: you want to put capital for your Where do you

448
00:22:02,840 --> 00:22:03,879
Speaker 4: want to put your client's capital?

449
00:22:04,000 --> 00:22:07,359
Speaker 6: Today it's it's powering data centers.

450
00:22:07,440 --> 00:22:09,359
Speaker 9: So it's partnering with the biggest companies in the world

451
00:22:09,680 --> 00:22:12,119
Speaker 9: to supply these needs and to make sure that rate

452
00:22:12,200 --> 00:22:14,320
Speaker 9: payers aren't paying for it so it doesn't show up

453
00:22:14,359 --> 00:22:16,280
Speaker 9: on our electricity bills.

454
00:22:16,440 --> 00:22:22,040
Speaker 2: Unfair question. Final question, Andrew Gilbert, which traditional utility has

455
00:22:22,200 --> 00:22:24,240
Speaker 2: best practices for the future.

456
00:22:25,040 --> 00:22:25,480
Speaker 6: I think what.

457
00:22:27,240 --> 00:22:29,440
Speaker 9: Some of the western utilities are doing in terms of

458
00:22:30,280 --> 00:22:34,800
Speaker 9: hardening and the efforts they're making around wildfire prevention is excellent.

459
00:22:35,560 --> 00:22:38,560
Speaker 9: It's a huge challenge they face to keep that, to

460
00:22:38,640 --> 00:22:40,720
Speaker 9: keep the wire safe, to keep people safe, and I

461
00:22:40,720 --> 00:22:43,120
Speaker 9: think they're doing a fantastic job turning those businesses around.

462
00:22:43,200 --> 00:22:43,960
Speaker 2: Don't be strange.

463
00:22:44,000 --> 00:22:45,000
Speaker 6: Yeah, I would love to come back.

464
00:22:45,119 --> 00:22:47,440
Speaker 2: Do you pay the congestion tax? Or who figure out

465
00:22:47,960 --> 00:22:53,880
Speaker 2: get around that? It's tough. It's tough, absolutely superb But folks,

466
00:22:53,960 --> 00:22:57,040
Speaker 2: I hope you love this. Somebody said, Lisa or Paul

467
00:22:57,119 --> 00:22:59,560
Speaker 2: came to the rescue and so get some geek on

468
00:22:59,720 --> 00:23:03,320
Speaker 2: all the data center elector stuff. Andrew Gilbert, did you

469
00:23:03,400 --> 00:23:04,600
Speaker 2: do take thermodynamics?

470
00:23:04,640 --> 00:23:05,600
Speaker 10: And I did not.

471
00:23:05,680 --> 00:23:06,879
Speaker 6: I'm not bright enough for that stuff.

472
00:23:07,160 --> 00:23:07,480
Speaker 2: That's all.

473
00:23:08,840 --> 00:23:09,399
Speaker 4: He's a banker.

474
00:23:10,640 --> 00:23:13,760
Speaker 2: Andrew Gilbert, thank you so much. With ECP, we'll do

475
00:23:13,880 --> 00:23:16,399
Speaker 2: This again is the story, huge story.

476
00:23:21,680 --> 00:23:25,560
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday

477
00:23:25,600 --> 00:23:28,560
Speaker 1: starting at seven am Eastern on Apple Corplay.

478
00:23:28,160 --> 00:23:30,560
Speaker 8: And Android Auto with the Bloomberg Business app.

479
00:23:30,680 --> 00:23:33,520
Speaker 1: You can also watch us live every weekday on YouTube

480
00:23:33,720 --> 00:23:35,760
Speaker 1: and always on the Bloomberg terminal.

481
00:23:36,080 --> 00:23:38,800
Speaker 2: We are honored to bring you the nation's expert in

482
00:23:38,920 --> 00:23:44,000
Speaker 2: civics or textbooks are absolutely foundational. Wendy Schiller is professor

483
00:23:44,040 --> 00:23:47,320
Speaker 2: at Brown University, the Tubyne Center and such. Wendy, so

484
00:23:47,480 --> 00:23:51,639
Speaker 2: honored to have you here. The document is incredibly detailed

485
00:23:51,680 --> 00:23:54,960
Speaker 2: for a hack like me. Halfway through on page twenty

486
00:23:55,080 --> 00:23:59,639
Speaker 2: five discussion, they go right to the Shiller matter. They

487
00:23:59,760 --> 00:24:04,320
Speaker 2: go right back to seventeen eighty eight, James Madison, Federalists

488
00:24:04,840 --> 00:24:10,440
Speaker 2: number forty eight. Where's the legislature? Whatever you believe in, folks,

489
00:24:10,520 --> 00:24:14,639
Speaker 2: whatever the issue is, pro Trump, anti Trump, etc. Wendy Schiller,

490
00:24:14,960 --> 00:24:17,720
Speaker 2: where is the legislature in this tariff battle?

491
00:24:18,160 --> 00:24:21,800
Speaker 10: Well, it's fascinating that the court, this sort of structure

492
00:24:21,920 --> 00:24:26,800
Speaker 10: for tariff courts, has now intervened and said these are illegal.

493
00:24:27,000 --> 00:24:30,520
Speaker 10: You would have thought the Congress with you know, tariffs

494
00:24:30,600 --> 00:24:34,600
Speaker 10: are import taxes. Congress, particularly the House of Representatives have

495
00:24:34,640 --> 00:24:39,560
Speaker 10: a constitutional authority to generate revenue and to authorize spending.

496
00:24:40,040 --> 00:24:43,680
Speaker 10: Only the House can initiate that, and so they do

497
00:24:43,960 --> 00:24:48,040
Speaker 10: have jurisdiction over tariffs. And the president can suspend the rules,

498
00:24:48,320 --> 00:24:52,200
Speaker 10: you know, indefinitely if he so chooses. But the idea

499
00:24:52,480 --> 00:24:54,760
Speaker 10: was that this is just for an emergency and that

500
00:24:54,880 --> 00:24:57,920
Speaker 10: the power really rests with Congress. But the Republican dominated

501
00:24:58,000 --> 00:25:01,200
Speaker 10: House and Senate has chos and to let the president

502
00:25:01,400 --> 00:25:03,800
Speaker 10: extend this authority literally.

503
00:25:03,640 --> 00:25:04,480
Speaker 8: Chosen to do that.

504
00:25:04,960 --> 00:25:07,119
Speaker 10: They could have repriked it earlier this year, but they didn't.

505
00:25:07,520 --> 00:25:10,920
Speaker 10: So this is really fascinating that now the court that

506
00:25:11,080 --> 00:25:13,679
Speaker 10: is part of the trade, international trade and domestic trade

507
00:25:13,760 --> 00:25:17,400
Speaker 10: system has said no, these are illegal. Where is Congress?

508
00:25:17,880 --> 00:25:20,320
Speaker 2: What will the appeal process looked like? Peter Navarro with

509
00:25:20,440 --> 00:25:22,640
Speaker 2: this year in an hour and a half from sixteen

510
00:25:22,720 --> 00:25:28,119
Speaker 2: hundred Pennsylvania Avenue Professor Schuler, Navarro's going to be apoplectic

511
00:25:28,520 --> 00:25:32,960
Speaker 2: over this. Who does the Trump administration appeal to? Who

512
00:25:33,040 --> 00:25:33,840
Speaker 2: are those guys?

513
00:25:34,560 --> 00:25:37,000
Speaker 10: Well, that's the big question mark, I mean everything. This

514
00:25:37,119 --> 00:25:40,440
Speaker 10: is sort of an embedded government structure. So you know,

515
00:25:40,560 --> 00:25:42,639
Speaker 10: when you think about the final word, who has the

516
00:25:42,680 --> 00:25:45,200
Speaker 10: final word? And the Trump administration is not that interested

517
00:25:45,720 --> 00:25:49,320
Speaker 10: in any other structure in the American piblical system having

518
00:25:49,480 --> 00:25:50,560
Speaker 10: of power over them.

519
00:25:51,080 --> 00:25:52,280
Speaker 2: You know, does everything go to.

520
00:25:52,320 --> 00:25:56,240
Speaker 10: The Supreme Court? And the Supreme Court is interesting to watch.

521
00:25:56,359 --> 00:25:58,919
Speaker 10: We have a lot of decisions coming down in June

522
00:25:59,240 --> 00:26:02,080
Speaker 10: that we can expect, and you know, where do they

523
00:26:02,200 --> 00:26:05,680
Speaker 10: reign in executive power? And the important thing with the

524
00:26:05,680 --> 00:26:08,200
Speaker 10: Supreme Court is to make sure this isn't about Donald Trump.

525
00:26:08,520 --> 00:26:11,400
Speaker 10: This is about the balance of power in the system itself.

526
00:26:11,840 --> 00:26:15,320
Speaker 10: So that's where the education on tariffs lie. In immigration,

527
00:26:15,480 --> 00:26:18,000
Speaker 10: and we've seen the Court say to the President and Congress.

528
00:26:18,440 --> 00:26:21,760
Speaker 10: Congress has authority to make the laws on immigration, make

529
00:26:21,840 --> 00:26:25,560
Speaker 10: the laws. The president cannot just create immigration law. So

530
00:26:25,880 --> 00:26:28,640
Speaker 10: is that the same thing that will be applied to tariffs.

531
00:26:28,760 --> 00:26:30,360
Speaker 10: We're probably about to find out.

532
00:26:30,680 --> 00:26:32,919
Speaker 4: So, Wendy, what happens in the interim here? I mean,

533
00:26:33,000 --> 00:26:36,280
Speaker 4: I feel like the United States negotiating with dozens of

534
00:26:36,359 --> 00:26:41,000
Speaker 4: countries over tariffs. What do I do if I'm I

535
00:26:41,040 --> 00:26:43,560
Speaker 4: don't know, China, Canada, Mexico, What do I do now

536
00:26:43,600 --> 00:26:44,120
Speaker 4: with this ruling?

537
00:26:44,600 --> 00:26:45,600
Speaker 2: Well, I mean, when you think.

538
00:26:45,520 --> 00:26:47,800
Speaker 10: About the other countries, she also think about small businesses.

539
00:26:48,240 --> 00:26:50,440
Speaker 10: Rhode Island is to state with a disproportionate amount of

540
00:26:50,480 --> 00:26:51,520
Speaker 10: small business owners.

541
00:26:51,920 --> 00:26:54,480
Speaker 8: How do they plan? You know, are you paying the tax?

542
00:26:54,520 --> 00:26:56,040
Speaker 10: Are you're not paying the attacks? And I call it

543
00:26:56,080 --> 00:26:58,600
Speaker 10: attacks because it is a tax, a tariff.

544
00:26:58,840 --> 00:26:59,480
Speaker 6: You know, what do you do?

545
00:26:59,560 --> 00:27:00,480
Speaker 10: Do you reach your prices?

546
00:27:00,560 --> 00:27:02,080
Speaker 2: Now? You know? How much do you order?

547
00:27:02,200 --> 00:27:04,560
Speaker 10: What do we think about the economy? It creates and

548
00:27:04,680 --> 00:27:08,439
Speaker 10: generates of course uncertainty. We saw the markets react badly

549
00:27:08,920 --> 00:27:12,200
Speaker 10: to major tariffs, then they come down. Now the market

550
00:27:12,320 --> 00:27:15,000
Speaker 10: is settled, and now there's continued uncertainty. So if you're

551
00:27:15,080 --> 00:27:17,520
Speaker 10: Navarro and you want to make the argument that government

552
00:27:17,600 --> 00:27:20,040
Speaker 10: that businesses should invest in the United States, they need

553
00:27:20,200 --> 00:27:24,440
Speaker 10: a stable, consistent business environment. And right now the trumpinstration

554
00:27:24,560 --> 00:27:27,880
Speaker 10: is not providing a stable and consistent business environment.

555
00:27:28,520 --> 00:27:31,200
Speaker 4: How how hard do you think the Trump administration will

556
00:27:31,240 --> 00:27:36,240
Speaker 4: fight this court ruling and fight for its tariff mandates.

557
00:27:37,240 --> 00:27:39,480
Speaker 10: The instinct to fight comes straight from the top.

558
00:27:39,640 --> 00:27:39,800
Speaker 2: Yep.

559
00:27:40,080 --> 00:27:43,159
Speaker 10: Trump is a fighter and he doesn't like limits on

560
00:27:43,320 --> 00:27:46,399
Speaker 10: his power. You know, he could be talked into lowering them,

561
00:27:46,440 --> 00:27:49,639
Speaker 10: and he has been talked into lowering them. And so

562
00:27:49,880 --> 00:27:52,359
Speaker 10: when you think about this, the president will fight for

563
00:27:52,480 --> 00:27:56,879
Speaker 10: the sake of retaining executive power, and Congress has to

564
00:27:56,920 --> 00:28:00,320
Speaker 10: send him a signal eventually, but they aren't acting on that. Again,

565
00:28:00,320 --> 00:28:02,800
Speaker 10: when we look at this tax bill, once it's out

566
00:28:02,840 --> 00:28:05,840
Speaker 10: of the way, what does Conger doud reserve itself. I

567
00:28:05,880 --> 00:28:08,640
Speaker 10: don't have great expectations for Congress to reserve itself once

568
00:28:08,680 --> 00:28:10,800
Speaker 10: this tax bill is done. I think the Republicans realize

569
00:28:10,960 --> 00:28:12,640
Speaker 10: that's not the only thing they're gonna get done this year.

570
00:28:12,760 --> 00:28:16,120
Speaker 2: And your commute across the nation. A hugely eventful Thursday

571
00:28:16,200 --> 00:28:18,800
Speaker 2: with legal opinions which will brief you on a number

572
00:28:18,840 --> 00:28:22,080
Speaker 2: of times. Yere across the morning. Good Morning on YouTube

573
00:28:22,160 --> 00:28:25,760
Speaker 2: worldwide as well. Wendy Schiller of Brown University is with

574
00:28:25,920 --> 00:28:28,600
Speaker 2: us today. Wendy, I'm just going to cherry pick here.

575
00:28:28,640 --> 00:28:32,119
Speaker 2: And a gentleman from New Jersey, Samuel Alito, is on

576
00:28:32,240 --> 00:28:36,680
Speaker 2: the Supreme Court. Let's assume if it's a decision of

577
00:28:37,600 --> 00:28:40,240
Speaker 2: eight to one, seven to two, nine to one, whatever,

578
00:28:40,400 --> 00:28:44,720
Speaker 2: ninety two, three four, Alito's leading a certain charge to

579
00:28:44,880 --> 00:28:49,280
Speaker 2: support the executive branch. Describe the thinking of the people

580
00:28:49,720 --> 00:28:53,400
Speaker 2: like Judge Alito, who says, wait, you three judge, Court,

581
00:28:53,760 --> 00:29:00,160
Speaker 2: you can't do that. Describe Alito's federalists and Madisonian vial me.

582
00:29:00,240 --> 00:29:02,280
Speaker 10: When you look at Alito and Thomas, they're different, I

583
00:29:02,360 --> 00:29:05,600
Speaker 10: think in the way they vote a lot similarly a

584
00:29:05,680 --> 00:29:08,560
Speaker 10: lot of the time. But Alito truly believes that the

585
00:29:08,840 --> 00:29:11,959
Speaker 10: entire apparatus of the federal government is far too large

586
00:29:12,400 --> 00:29:16,600
Speaker 10: and is completely inconsistent with the constitutional structure and the

587
00:29:16,720 --> 00:29:20,440
Speaker 10: intent of the federal government as it was created, which

588
00:29:20,520 --> 00:29:23,760
Speaker 10: was basically to protect the national defenses and allow an

589
00:29:23,800 --> 00:29:28,120
Speaker 10: economy to flourish, but basically let the original thirteen colonies

590
00:29:28,560 --> 00:29:30,400
Speaker 10: live the way they were. They were very different from

591
00:29:30,440 --> 00:29:32,960
Speaker 10: each other when they entered into the Union. And so

592
00:29:33,360 --> 00:29:37,040
Speaker 10: his argument is, nobody ever built, nobody ever intended for

593
00:29:37,120 --> 00:29:39,240
Speaker 10: this to be so big, nobody wanted it to bill

594
00:29:39,320 --> 00:29:42,920
Speaker 10: out this large. So I'm going to take every opportunity

595
00:29:43,360 --> 00:29:46,880
Speaker 10: to basically reduce the scope of the government. And what

596
00:29:47,040 --> 00:29:50,960
Speaker 10: he believes is that Congress drives the size of the

597
00:29:51,000 --> 00:29:54,240
Speaker 10: federal government, and not the President, that the President executes,

598
00:29:54,280 --> 00:29:56,560
Speaker 10: but that the president can in fact reduce the size

599
00:29:56,560 --> 00:29:57,000
Speaker 10: of the government.

600
00:29:57,120 --> 00:29:58,640
Speaker 2: This is so important, I got to squeeze it in,

601
00:29:58,760 --> 00:30:02,200
Speaker 2: Professor Schuller, I look at a three judge court, Reagan, Trump,

602
00:30:02,360 --> 00:30:07,600
Speaker 2: what was it? Obama? Reagan Trump Obama judges. Nobody's talking

603
00:30:07,720 --> 00:30:11,320
Speaker 2: a regionalist theory here. They're just talking nuts and bolts

604
00:30:11,600 --> 00:30:15,000
Speaker 2: of a nineteen seventy seven agreement. And the huge detail

605
00:30:15,080 --> 00:30:17,840
Speaker 2: in their professionalism is this going to just go back

606
00:30:17,880 --> 00:30:21,240
Speaker 2: to originalist theory a la Thomas and Alito and what

607
00:30:21,440 --> 00:30:22,720
Speaker 2: President Trump supports.

608
00:30:23,120 --> 00:30:25,200
Speaker 10: The problem for Thomas and Aldo to do that is

609
00:30:25,240 --> 00:30:28,400
Speaker 10: that original theory literally in not only the Federalist papers,

610
00:30:28,440 --> 00:30:31,800
Speaker 10: but the Constitution itself, is that the House controls tariff policy.

611
00:30:32,120 --> 00:30:34,120
Speaker 10: That you can't just wake up in the morning and

612
00:30:34,160 --> 00:30:36,200
Speaker 10: say I'm going to impost one hundred and thirty percent

613
00:30:36,360 --> 00:30:38,840
Speaker 10: or forty five percent on an individual country if you're

614
00:30:38,840 --> 00:30:41,800
Speaker 10: the president of the United States, only under extraordinary circumstances.

615
00:30:42,040 --> 00:30:44,200
Speaker 10: And the Constitution and the founders are very clear that

616
00:30:44,280 --> 00:30:48,120
Speaker 10: when you execute these powers as president in extraordinary circumstances,

617
00:30:48,320 --> 00:30:51,480
Speaker 10: those circumstances have to be extraordinary. So this is the

618
00:30:51,520 --> 00:30:54,680
Speaker 10: problem for Ledo on Thomason. Goes completely against their theory

619
00:30:55,000 --> 00:30:58,080
Speaker 10: of originalism to put all this power and opportunity in

620
00:30:58,160 --> 00:31:00,960
Speaker 10: the president's hands, and the Constitution that's quite explicit that

621
00:31:01,080 --> 00:31:03,800
Speaker 10: it should rest with the Congress, particularly the House represent.

622
00:31:03,680 --> 00:31:05,800
Speaker 2: I can't Imagine your day, Wendy Show, Thank you so

623
00:31:05,920 --> 00:31:08,760
Speaker 2: much for being with us this morning with Brown University.

624
00:31:09,360 --> 00:31:13,280
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday

625
00:31:13,320 --> 00:31:16,200
Speaker 1: starting at seven am Eastern on Apple, Cocklay.

626
00:31:15,840 --> 00:31:18,240
Speaker 8: And Android Auto with the Bloomberg Business App.

627
00:31:18,360 --> 00:31:21,360
Speaker 1: You can also listen live on Amazon Alexa from our

628
00:31:21,400 --> 00:31:25,520
Speaker 1: flagship New York station, Just say Alexa Play Bloomberg eleven

629
00:31:25,640 --> 00:31:26,800
Speaker 1: thirty Lisa Matteo.

630
00:31:26,920 --> 00:31:29,360
Speaker 2: Now with the newspapers, what do you happen?

631
00:31:29,360 --> 00:31:31,680
Speaker 7: All right, I'm starting with this Wall Street Journal exclusive.

632
00:31:32,080 --> 00:31:35,560
Speaker 7: This is about Paramount Global. They're offering reportedly offering President

633
00:31:35,600 --> 00:31:38,040
Speaker 7: Trump fifteen million dollars to settle that lawsuit he had

634
00:31:38,080 --> 00:31:41,520
Speaker 7: against Paramount CBS News, But sources are telling the journal

635
00:31:41,560 --> 00:31:44,320
Speaker 7: that the President feels it's not enough. He wants more

636
00:31:44,400 --> 00:31:47,600
Speaker 7: than twenty five million. He also reportedly wants an apology

637
00:31:47,680 --> 00:31:51,720
Speaker 7: from CBS. If you remember that lawsuit, it was it

638
00:31:51,800 --> 00:31:54,720
Speaker 7: all surrounds how the network supposedly edited a sixty minutes

639
00:31:54,760 --> 00:31:58,000
Speaker 7: interview with Kamala Harris to make her sound better. CBS

640
00:31:58,080 --> 00:32:00,560
Speaker 7: says that's not true, but they're all also saying that

641
00:32:00,840 --> 00:32:04,760
Speaker 7: the President's team has dreatened another lawsuit against CBS related

642
00:32:04,800 --> 00:32:08,400
Speaker 7: to bias on its news coverage. But there's supposed to

643
00:32:08,440 --> 00:32:11,959
Speaker 7: be a session today like where this is unprecedented.

644
00:32:12,040 --> 00:32:15,080
Speaker 2: I mean, isn't CBS supposed to fight back? Is the news?

645
00:32:15,200 --> 00:32:17,000
Speaker 4: The reason they're not fighting back is they have a

646
00:32:17,080 --> 00:32:19,240
Speaker 4: planned merger with Skydance Media and they want.

647
00:32:19,120 --> 00:32:19,680
Speaker 2: That to go through.

648
00:32:19,760 --> 00:32:23,600
Speaker 4: They need the FCC approval and presumably there's some concerns

649
00:32:23,640 --> 00:32:25,960
Speaker 4: that the government will use this suit as a reason

650
00:32:26,040 --> 00:32:29,360
Speaker 4: not to approve the deal. Sherry Redstone needs the merger

651
00:32:29,400 --> 00:32:31,200
Speaker 4: to go through so she can get paid out. It's

652
00:32:31,200 --> 00:32:33,720
Speaker 4: as simple as that. So it's uh, you know, they'll

653
00:32:33,840 --> 00:32:34,360
Speaker 4: come to something.

654
00:32:34,520 --> 00:32:37,640
Speaker 2: We've seen some just point out separate from this news.

655
00:32:37,680 --> 00:32:39,720
Speaker 2: We've seen resignations at CBS.

656
00:32:39,880 --> 00:32:40,680
Speaker 6: Yeah, I mean, yep.

657
00:32:40,800 --> 00:32:42,320
Speaker 2: There's a lot, a lot going on.

658
00:32:42,440 --> 00:32:44,720
Speaker 4: There, a lot going on there, and it's all because

659
00:32:44,880 --> 00:32:47,520
Speaker 4: they need to get this deal approved and get it through.

660
00:32:48,200 --> 00:32:51,440
Speaker 4: So it's all about money as it just as it

661
00:32:51,480 --> 00:32:51,920
Speaker 4: always is.

662
00:32:52,120 --> 00:32:55,400
Speaker 7: Neclas Okay, all right, we'll take you to luxury okay,

663
00:32:55,720 --> 00:32:58,160
Speaker 7: lvmh Okay. They said they could increase the price bits

664
00:32:58,160 --> 00:33:01,120
Speaker 7: goods by about three percent to office at tariffs. But

665
00:33:01,280 --> 00:33:04,120
Speaker 7: there are two things that they say they cannot raise

666
00:33:04,160 --> 00:33:07,360
Speaker 7: a price on and that is cognac and lower priced

667
00:33:07,520 --> 00:33:09,360
Speaker 7: beauty products, the lower priced end.

668
00:33:09,960 --> 00:33:10,040
Speaker 2: Uh.

669
00:33:10,160 --> 00:33:13,400
Speaker 7: They say things like jewelry, those high end jewelry they

670
00:33:13,480 --> 00:33:17,520
Speaker 7: can withstand the price increases because their buyers can take

671
00:33:17,560 --> 00:33:18,600
Speaker 7: on the price increases.

672
00:33:19,280 --> 00:33:19,800
Speaker 8: But they've had a.

673
00:33:19,800 --> 00:33:22,560
Speaker 7: Tough time with the alcohol sales. Apparently the Konnak Spirits

674
00:33:22,600 --> 00:33:26,120
Speaker 7: division they've dipped in the past year. They're selling fewer

675
00:33:26,240 --> 00:33:28,600
Speaker 7: champagne bottles on top of it too, so they're saying

676
00:33:28,720 --> 00:33:29,920
Speaker 7: those are the things they can't.

677
00:33:29,760 --> 00:33:30,760
Speaker 5: I don't think I've ever had.

678
00:33:30,880 --> 00:33:35,080
Speaker 4: Cognac is a variety of brandy named after the Commune

679
00:33:35,200 --> 00:33:36,560
Speaker 4: of Cognac, France.

680
00:33:37,360 --> 00:33:40,080
Speaker 6: All right, it's not bad, Yeah, yes, Cognac.

681
00:33:40,520 --> 00:33:42,400
Speaker 7: I did a little Hennessy sometimes.

682
00:33:46,640 --> 00:33:47,120
Speaker 6: In the desk.

683
00:33:47,600 --> 00:33:49,280
Speaker 4: It's the Hennessy Cognac, all.

684
00:33:49,240 --> 00:33:56,720
Speaker 7: Right, it has and Champagne.

685
00:33:56,840 --> 00:33:58,600
Speaker 2: I can't remember the name of the company now, but

686
00:33:58,680 --> 00:34:02,640
Speaker 2: it's a small, secure French thing, and like one third

687
00:34:02,680 --> 00:34:05,760
Speaker 2: of their business is Cognac or whatever. And it ain't happening.

688
00:34:06,000 --> 00:34:11,239
Speaker 2: I mean, it's not just LV, it's overall. So they're

689
00:34:11,280 --> 00:34:16,000
Speaker 2: not lowering the price of all the merch that sundry Keenes.

690
00:34:15,719 --> 00:34:19,080
Speaker 7: Look at of the cognac and the spirits of the

691
00:34:19,160 --> 00:34:20,959
Speaker 7: other high end jewelry and that kind of stuff.

692
00:34:21,320 --> 00:34:23,640
Speaker 2: Lewis Viewton shoes too much for the prom.

693
00:34:24,400 --> 00:34:29,239
Speaker 7: Yes, definitely, that was a discussions. You can't even see

694
00:34:29,280 --> 00:34:32,359
Speaker 7: the feet with the dress, so don't even think about it. Next,

695
00:34:33,000 --> 00:34:35,120
Speaker 7: we've been talking a lot about AI and will they

696
00:34:35,239 --> 00:34:38,759
Speaker 7: replace jobs, right, so this story about salesforce kind of

697
00:34:38,800 --> 00:34:40,920
Speaker 7: puts that into perspective a little bit. They said they're

698
00:34:40,960 --> 00:34:44,240
Speaker 7: reducing the hiring for some roles because of its AI tools.

699
00:34:44,320 --> 00:34:47,239
Speaker 7: So its CFO gave this example and she said five

700
00:34:47,360 --> 00:34:50,440
Speaker 7: hundred customer service workers will be moved to different positions

701
00:34:50,480 --> 00:34:53,520
Speaker 7: within the company and that'll save them about fifty million dollars.

702
00:34:54,560 --> 00:34:57,520
Speaker 7: Also said they're hiring fewer engineers on top of it.

703
00:34:57,880 --> 00:34:59,440
Speaker 7: They say they hope it's going to make their staff

704
00:34:59,480 --> 00:35:02,160
Speaker 7: more productive. But at the same time, where they're increasing

705
00:35:02,280 --> 00:35:05,040
Speaker 7: are the ranks of its salesforce. So that's where they're

706
00:35:05,040 --> 00:35:07,080
Speaker 7: starting to see the difference. But we've seen it, you know,

707
00:35:07,239 --> 00:35:09,040
Speaker 7: different companies like Microsoft told.

708
00:35:09,520 --> 00:35:12,400
Speaker 4: Offspring number three, get to a business where you have

709
00:35:12,480 --> 00:35:14,040
Speaker 4: a revenue number next to your.

710
00:35:14,000 --> 00:35:14,880
Speaker 2: Name, that's it.

711
00:35:15,040 --> 00:35:18,239
Speaker 4: That's my strategy, that's my advice. You know, get to

712
00:35:18,320 --> 00:35:19,680
Speaker 4: a business, and so salesforce?

713
00:35:19,840 --> 00:35:22,160
Speaker 2: Do you do you believe equipment? We don't have the

714
00:35:22,200 --> 00:35:24,680
Speaker 2: time here, but like all these jobs are going to

715
00:35:24,920 --> 00:35:26,320
Speaker 2: go away, I just don't buy it.

716
00:35:26,719 --> 00:35:28,279
Speaker 4: Well, I think a lot of them are. I mean,

717
00:35:28,320 --> 00:35:30,279
Speaker 4: I just think of my investment banking business. I mean,

718
00:35:30,520 --> 00:35:33,279
Speaker 4: do I need three analysts staffed on a deal to

719
00:35:33,440 --> 00:35:36,719
Speaker 4: draft inspect models. I don't think so.

720
00:35:37,239 --> 00:35:37,840
Speaker 6: I don't think so.

721
00:35:38,040 --> 00:35:39,319
Speaker 4: So I think there's gonna be an issue there.

722
00:35:39,239 --> 00:35:42,560
Speaker 2: The newspaper SAIDY Lisa Matteo, thank you so much.

723
00:35:43,120 --> 00:35:47,920
Speaker 1: This is the Bloomberg Surveillance podcast, available on Apple, Spotify,

724
00:35:48,080 --> 00:35:52,360
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725
00:35:52,520 --> 00:35:55,480
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726
00:35:55,880 --> 00:35:59,640
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727
00:36:00,040 --> 00:36:03,080
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728
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