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Speaker 2: Michael Purvis joins us now from tall back end, is
Speaker 2: your narrative a bullmarket? I mean, my head is spinning.
Speaker 2: I got copious number of people, a lot of seven
Speaker 2: thousand plus SPX and others thinking the world's gonna add Yeah.
Speaker 3: Look, I mean if you step back for a second
Speaker 3: and you think about we have some level of fiscal
Speaker 3: stimulus through a big beautiful bill, offset admittedly by tariffs,
Speaker 3: you have the concurrence of that with monetary stimulus. And
Speaker 3: I'm sorry, even if we get a Powell era type
Speaker 3: cutting cycle, it's still a cutting cycle into four point
Speaker 3: three percent unemployment and three percent plus GDP and three
Speaker 3: percent inflation. Uh there, And then you have the this
Speaker 3: I call it alternative fiscal stimulus through this AI cap
Speaker 3: X boom, which is you know, which is just almost
Speaker 3: almost you know, you know, just from the from from
Speaker 3: four companies, you're talking about seven hundred billion dollars.
Speaker 4: Over the next twenty four months. That's where they're guiding
Speaker 4: the street to. You know, those are the big guys,
Speaker 4: Microsoft and Amazon, et cetera. So so look, that's a
Speaker 4: that's a macro setup.
Speaker 3: I think the question we're all waiting for is ken
Speaker 3: earnings continued to deliver in an age where the k
Speaker 3: economy is getting worse and also where you know, some
Speaker 3: of these residual risks like tariffs hitting margins and or
Speaker 3: the consumer you know, are starting, you know, likely to.
Speaker 4: Persist and creep in.
Speaker 3: So far, you know that dance has worked right, and
Speaker 3: it's hard to find a lot of broader evidence that
Speaker 3: that it's going to look suddenly fall apart anytime soon.
Speaker 3: But I think, I think, you know, that's that's really
Speaker 3: the tension as we talk you know, into as we
Speaker 3: had into twenty twenty six, that's really where the tension is.
Speaker 4: The macro setup is really really strong.
Speaker 3: One point I'm just going to make you know, Paul,
Speaker 3: you and I were talking about the nineties, Yeah, offline,
Speaker 3: but one thing we had in the in the in
Speaker 3: the in the mid and late nineties is you know,
Speaker 3: you have this sort of persistent you know inflation not
Speaker 3: getting to the fenced target, and you had, you know,
Speaker 3: a good economic condition.
Speaker 4: They're One thing that's different.
Speaker 3: Now is that you know, we have arguably, you know,
Speaker 3: a refreshed cutting cycle here here, and you didn't, you know,
Speaker 3: you had what the FED was sort of tweaking back
Speaker 3: and much of the of the last few years of
Speaker 3: the nineteen nineties. If we get a it doesn't seem
Speaker 3: to right now based on some of the FED messaging,
Speaker 3: but if we do get you know, sort of a
Speaker 3: refreshed FED and a refreshed sort of cutting narrative with
Speaker 3: this type of economic data, that is going to be
Speaker 3: a really interesting period unfolding.
Speaker 5: So what do you think about volatility here? We have
Speaker 5: a VIX sitting right at twenty. Doesn't seem to get
Speaker 5: anybody's attention too much, but it's certainly not you know,
Speaker 5: fourteen or fifteen on the VIX here.
Speaker 4: What do you see in terms of volatility? Yeah, look,
Speaker 4: you know, the VIX has been sort of it's sort
Speaker 4: of been interesting.
Speaker 3: You know, we never really got down to those eleven
Speaker 3: and twelves that you normally associate with a with a strong.
Speaker 4: Bull market here.
Speaker 3: Part of that was that, you know, you had the
Speaker 3: right tail of the of the VIX call buying kind
Speaker 3: of you know, support the VIX. Yeah, for most of
Speaker 3: the time you had a pretty robust volatility risk premium.
Speaker 3: That's the spread in my mind of the VIX to
Speaker 3: realize volatility.
Speaker 6: There.
Speaker 3: And you know, just over the last week or so,
Speaker 3: you saw this sort of like you know, like you know,
Speaker 3: sort of push above twenty two and then quickly fade
Speaker 3: those levels here. So I look at it right now,
Speaker 3: look skew, I meaning the difference between puts and calls.
Speaker 3: The implied volatility for those are you know, that's been
Speaker 3: really getting higher here, you know, thanks a little bit
Speaker 3: to some of the volatility we saw last week. That's
Speaker 3: healthy there. If if the everything else stuff performs, we
Speaker 3: don't get any real horrible news in two years end,
Speaker 3: that's going to help reinforce I think a sprint into
Speaker 3: the finish line, you know, maybe another one to two
Speaker 3: hundred points higher in the S and P if.
Speaker 2: The stock market gets on front. You've got a franchise
Speaker 2: on this. You've been really good on this cross asset
Speaker 2: of looking out. If the stock market is doing what
Speaker 2: it's doing, is it's simply modeling out we're going to
Speaker 2: get the economic data, and this is what it's going
Speaker 2: to signal, is a market banking a bet on all
Speaker 2: that delayed economic data right now?
Speaker 3: Well, yeah, there's a there's a little bit of sort
Speaker 3: of you know, the markets are trying to sort of
Speaker 3: vibe their way through without this, without this data that
Speaker 3: we're getting.
Speaker 4: Whoa Lisa, Lisa.
Speaker 2: Is Michael Purvis young enough to say vibe your way through?
Speaker 4: Yes, okay, thank you, thank you, But I have a
Speaker 4: lot of children. Sound they keep you form.
Speaker 3: But the the you know, right, whatever print we get
Speaker 3: on Thursday on jobs, you know, we will arguably Nvidia
Speaker 3: will be a lot more instructive in terms of where
Speaker 3: the market is going to go than whatever the job
Speaker 3: The jobs data if it's fifty thousand or minus fifty
Speaker 3: thousand or one hundred and twenty thousand, like it all
Speaker 3: comes with a lot of footnotes, right, So so we'll
Speaker 3: have to probably need a couple of months for that
Speaker 3: to sort of self out. But Tom, I think you're
Speaker 3: touching on a broader question, which is can some of
Speaker 3: the jobs data get back, can some of the economic
Speaker 3: data be bad? And can the AI narrative, the AI
Speaker 3: empowered stock market if you will, can that keep going higher?
Speaker 6: Right?
Speaker 3: I mean one of the things I like to say
Speaker 3: is that Microsoft's mandate is to scale earnings, not to
Speaker 3: scale employees, right, so I think that will. You know, arguably,
Speaker 3: the main Street Wall Street disconnect may even get worse
Speaker 3: than an era of AI, and I think that's something
Speaker 3: to be watching for right now. If you're getting job
Speaker 3: losses because every company is just you know, is just
Speaker 3: falling apart, and then DAT is horrible, that's different. But
Speaker 3: right now you've got a very compelling sort of tech
Speaker 3: bull market.
Speaker 2: Michael Purvis with us for an extended discussion to get
Speaker 2: your market week going, as well as he mentions in
Speaker 2: video reports this week, lots of retail as well. This
Speaker 2: is a surveillance across America. Glenna Hubbard will be with
Speaker 2: us a really important important interview on the FED and
Speaker 2: the path forward from Professor Hubbard of Columbia Business School.
Speaker 4: He is the most.
Speaker 2: Intelligent supply side guy I know. Thrilled to have him on.
Speaker 2: In the nine o'clock hour, we say good morning to
Speaker 2: the United Kingdom. Sir Howard Stringer will join us and
Speaker 2: Paul and I decided, I mean, we could go how
Speaker 2: many hours, could Google three hours.
Speaker 5: He had so many careers, Sir Howard CBS exactly.
Speaker 2: Okay, should Letterman have been allowed to retire? You know
Speaker 2: that kind of thing. No, We're going to talk to
Speaker 2: Sir Howard Stringer about what's going on with the BBC
Speaker 2: in the United Kingdom. I can't say enough about the
Speaker 2: timeliness of that.
Speaker 5: Paul Sweeney with Michael Purpose Michael, in terms of derivatives,
Speaker 5: here are.
Speaker 4: Are clients looking to buy risk? Are they buying protection? Here?
Speaker 4: More or less?
Speaker 3: Well, it was a lot of the former, a lot
Speaker 3: of the upside call buying, you know, that was you
Speaker 3: know into the sort of September or October peak there
Speaker 3: that has shifted on balance, like I think, I think
Speaker 3: there's stull seems to be the retail bid for risk
Speaker 3: has not completely evaporated here, It's gotten you know, sort
Speaker 3: of you know, kicked it ahead a little bit over
Speaker 3: the last few weeks there. You know, you can see
Speaker 3: this with with with various stock training pairs. You know,
Speaker 3: if you look at like you know, in the in
Speaker 3: the nuclear uranium space, you look at sort of established
Speaker 3: companies with real cash flows like a Chemico relative to
Speaker 3: say an oaklow which had a twenty billion dollar market
Speaker 3: cap out of you know nowhere and and had zero revenues. Right, So,
Speaker 3: so I think what's happening here in the in the
Speaker 3: market here is that risk is stole on. But there's
Speaker 3: a lot of clean right so there's a lot of
Speaker 3: people sort of I don't think a lot of people
Speaker 3: are going to want to end the year with massively
Speaker 3: long a lot of very speculative names.
Speaker 4: We run up, you know, three hundred percent in nine months, Paul.
Speaker 2: First thing I did when I came in, I did
Speaker 2: a weekly chart, because that's what Michael Purvios does. I
Speaker 2: did a weekly chart of Nasdaq futures NASDAQ one hundred.
Speaker 2: We have cratered the maximum drawdown is the negative six
Speaker 2: point seven percent. We've rebounded from that, and we have
Speaker 2: cratered down about four percent from futures times you go
Speaker 2: the anks is ridiculous.
Speaker 4: I mean, it's just absurd, it is.
Speaker 6: So.
Speaker 5: I mean, Michael, what's the conversation you're having with clients today?
Speaker 5: Are they looking to to kind of go long here,
Speaker 5: they're looking to protect what they have, or are they
Speaker 5: just a limp just get me to year end?
Speaker 6: What are they?
Speaker 3: Well, look, I think it depends on on on the
Speaker 3: type of strategy you're running, right, if you've a solid
Speaker 3: if you're a long short hedge fund and you and
Speaker 3: you're you're you're up nicely. Uh. This year, I think
Speaker 3: a lot of them are just going into very conservative mode,
Speaker 3: trying to like lock in their gains and and and
Speaker 3: all that. Some of the other managers I think are
Speaker 3: that are that are you know, longer term and and uh,
Speaker 3: their strategies are you know, not as as as agile
Speaker 3: or fast. They those tend to be you know a
Speaker 3: little bit like sort of cautious, you know, but but
Speaker 3: still sort of structurally constructive.
Speaker 4: Uh uh you know.
Speaker 3: On the markets, I mean there certainly are sort of
Speaker 3: you know, you know, whether it's sort of some more
Speaker 3: hawkish comments from the from from from fed folks, or
Speaker 3: whether it's at some of these credit blow ups they're
Speaker 3: sort of like, wait a second, this this party is
Speaker 3: not you know, the cop the cops are starting. You
Speaker 3: can hear the sirens on the street a little bit.
Speaker 3: The question is how much. And I think that one
Speaker 3: message I'm really trying to explain to my clients is
Speaker 3: that is that this ca shaped economy we're having twenty
Speaker 3: twenty six, maybe a lot more K shaped in the
Speaker 3: within the economy. And I think you have to manage
Speaker 3: portfolios with that in mind.
Speaker 2: Then what do you do if for steroidal case shape.
Speaker 3: Well, I think if you're I think let's let's let's
Speaker 3: look at just sort of income. Well, yeah, there's I
Speaker 3: I think I think there's there's you want to say
Speaker 3: in larger cap companies there, but I think you also
Speaker 3: look I mean, I think if you look at uh,
Speaker 3: you know, we've seen you know, we've all seen these
Speaker 3: things floating around of uh uh uh you know, sub fight,
Speaker 3: sub six fifty fico score, uh.
Speaker 4: Uh, delinquency sort of accelerating and all that.
Speaker 3: If you one of them might big concerns right now
Speaker 3: is that lower income. If you look at the Aleta
Speaker 3: Atlanta Fed's wage tracker, they you know, they split up
Speaker 3: wage growth into income couartiles. The bottom quartile, the people
Speaker 3: making the least money are seeing their wages grow the least, right,
Speaker 3: and they I think are the most vulnerable to seeing
Speaker 3: those wages become a real wages become negative if inflation persists,
Speaker 3: and the and this downward pressure on their wage growth
Speaker 3: happens there and so if you're exposed to any company
Speaker 3: that is that is exposure to that that lower income grow,
Speaker 3: that's going to be something you probably want to avoid.
Speaker 2: Michael Purvis, thank you so much. I got to ask
Speaker 2: you this as we roll up, and what's Thanksgiving? It's
Speaker 2: like the fourth Thursday. Yeah, it's like out there the
Speaker 2: day after. Do you like to do the New Hampshire Thanksgiving? Like,
Speaker 2: are you at the squam Lake Marketplace? Ll being in Philson?
Speaker 2: Are you are holderness?
Speaker 6: Like?
Speaker 2: Do you hang out and have a cigar at the
Speaker 2: Squam Lake Public boat Launch?
Speaker 3: The public boat launch at this start of the year
Speaker 3: is pretty much wrapped up, but the I would say
Speaker 3: that the house gets locked up in October.
Speaker 2: There you lock everything down. Yeah, in October you don't
Speaker 2: go up. You don't. Do you have national geographics old
Speaker 2: national geographics.
Speaker 3: And I'm pretty sure we have a few of those,
Speaker 3: like you know of you know of a scrabble set
Speaker 3: missing seventeen letters or something, but you're still in.
Speaker 2: The parcheesy set in that wind. It just went away.
Speaker 2: This is the first I've said this. Have a wonderful Thanksgiving.
Speaker 2: Stay with us. More from Bloomberg Surveillance coming up after.
Speaker 1: This you're listening to the Bloomberg Surveillance Podcast. Catch US
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Speaker 2: Joining us now. And I've really been anticipating missus Glenn
Speaker 2: Hubbard out of Florida with just terrific academics and frankly
Speaker 2: giving energy to Columbia University's business schools. They're dean for
Speaker 2: so long. He's doing different things now. But I'm going
Speaker 2: to cut to the chase or Paul's got lots of
Speaker 2: FED questions. Glenn, I am absolutely thunderstruck and crushed that
Speaker 2: you're not on the short list to be chairman of
Speaker 2: the FED. Have you ever talked to the Secretary of
Speaker 2: Treasury about your commitment to a more conservative economic ethos?
Speaker 7: Well, thanks for having me, Tom. I think the President's
Speaker 7: got a good short list for the FED. I look
Speaker 7: forward to the to the choice. This is probably the
Speaker 7: most challenging time to run the FED that I could
Speaker 7: ever imagine.
Speaker 2: So that was diplomatic that one's exactly you learned to
Speaker 2: do that when you're Dina Colombia.
Speaker 4: Exactly Glenn, how do you view here the Fed?
Speaker 2: Here?
Speaker 5: It's in a little bit of it a position has
Speaker 5: doesn't necessarily find itself very often, which is, you know,
Speaker 5: really under some political pressure from the White House here,
Speaker 5: how do you view FED these days?
Speaker 7: Well, I think there's a short run and a long
Speaker 7: run challenge. The short run challenge is the one in
Speaker 7: the news, which is what do you do about rates?
Speaker 7: You have inflation that's too high, you have a job
Speaker 7: market weakening. I think the case for a lot of
Speaker 7: rate cuts is pretty weak. To the extent that they're
Speaker 7: worries about employment. Many of those are structural, they're AI,
Speaker 7: they are changes that really are beyond the Fed's purviews.
Speaker 7: I think the Fed's watchful waiting makes sense longer term.
Speaker 7: The challenge is how do you keep an independent Fed
Speaker 7: in the presence of political pressures? And I think while
Speaker 7: the FED needs to be independent, it has made mistakes.
Speaker 7: You know, President Trump is not entirely incorrect, and so
Speaker 7: the next chair will have to do some reforms.
Speaker 5: So you mentioned AI, Glenn, it's certainly been a key
Speaker 5: key narrative of this market over the last two to
Speaker 5: three years, as companies step up their spending here. But
Speaker 5: What are the impacts do you think on the US
Speaker 5: labor force.
Speaker 4: There's a lot of consternation out there.
Speaker 7: Well, I think it's too soon to tell. I mean, basically,
Speaker 7: AI can either substitute on the one hand, for workers,
Speaker 7: or it can compliment workers' skills, and we're seeing both
Speaker 7: of those in the labor market. It won't surprise you
Speaker 7: to know economists completely different and what their views are
Speaker 7: on AI. I think in the long run, AI is
Speaker 7: going to displace many jobs but create many more jobs.
Speaker 7: Where I think people may be surprised is on market
Speaker 7: valuations and who wins from AI. Just like we learned
Speaker 7: in the Telco boom in the nineties, a lot of
Speaker 7: the first movers lose money, but ultimately it raises productivity.
Speaker 7: We may well see.
Speaker 2: Rightly, let's go there, I mean, I mean, Glenn ahlbrid
Speaker 2: with US folks, for the whole of you worldwide on
Speaker 2: YouTube and all of our radio affiliates in America. Thank
Speaker 2: you for joining this morning. Glenn, you're teaching at Columbia
Speaker 2: or frankly at your Central Florida and you have to
Speaker 2: discuss productivity. We're blind right now to where productivity is
Speaker 2: in twenty twenty five when won't we have an understanding
Speaker 2: of this new productivity.
Speaker 7: Well, it's a great question, Tom, and the honest answer
Speaker 7: is it takes time. So if you look at previous
Speaker 7: waves of what economists called general purpose technologies like electricity
Speaker 7: or mainframe computing or the Internet, they took a decade
Speaker 7: or more to really ripple through productivity. And the reason
Speaker 7: is it takes time for businesses, for individuals. Adat, I
Speaker 7: think it would take less time this time. So it
Speaker 7: may be within five years, but we shouldn't be expecting
Speaker 7: it overnight.
Speaker 2: Okay, But Paul and I've had this in many conversations.
Speaker 2: It's just brilliant work. And thank you to Richard Clarina
Speaker 2: for his support of the show. Glenn Hubbard a long ago,
Speaker 2: in globalization, we broke a bargain with the clothing labor
Speaker 2: of the Carolinas. We said, we're going to retrain you,
Speaker 2: We're going to do this. Are we going to do
Speaker 2: the same thing with AI where we go sort of
Speaker 2: AI globalization and we break the labor bargain with all
Speaker 2: those people pushed out of jobs.
Speaker 7: I'm super worried about this point. It is the political
Speaker 7: economy question of our time. If you look at the
Speaker 7: past three or four decades. Technological change is actually number one.
Speaker 7: Then globalization. We didn't retrain people. We were too slow moving.
Speaker 7: AI is going to happen faster. I do worry about it.
Speaker 7: I hope the administration will become more focused on how
Speaker 7: do you get Come on, I got tied.
Speaker 2: One minute left, Glenn, let me cut to the chase.
Speaker 2: The elites are from the fancy schools up north. Granted
Speaker 2: you did so well in the South. You went to Harvard.
Speaker 2: There's like three zip codes out near Palo Alto. There's
Speaker 2: the northeastern zip code. You're one of the few people
Speaker 2: we have who viscerally gets the South. What's your message
Speaker 2: to the elites about not doing a redoc so that
Speaker 2: busted globalization of years ago.
Speaker 7: Well, two things. One, there's smart people and in ideas everywhere.
Speaker 7: We need applied research centers everywhere. We need to help
Speaker 7: place us left behind. And second, our politics depend on this.
Speaker 7: If we want to embrace AI and all it brings,
Speaker 7: we got to get this right.
Speaker 2: Glennhlbard, thank you so much. Great should I get off
Speaker 2: my soap aus? Glenn Albert, thank you so much, Always
Speaker 2: and forever with Columbia at University. Stay with us. More
Speaker 2: from Bloomberg Surveillance coming up after this.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
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Speaker 2: I need to set this up for our American audience.
Speaker 2: Sir Howard Stringer is from the low side of Wales
Speaker 2: called Cardiff. David Blanchflow of Dartmouth is from Cardiff as well,
Speaker 2: and he had the most interesting, interesting start to his career.
Speaker 2: You know him of course, from Sony.
Speaker 4: You know him.
Speaker 2: Perhaps some CBS Paul Sweni and I can do a
Speaker 2: three hour discussion we string He's seventy nine and holding
Speaker 2: you know, Paul. Just so you understand, Sir Howard Stringer
Speaker 2: joins us this morning here but specifically on the BBC
Speaker 2: and what it means for his United Kingdom. Sir Howard Stringer,
Speaker 2: thank you so much for joining Bloomberg this morning.
Speaker 4: My pleasure.
Speaker 2: I look, Sir Howard, at the debacle of the BBC
Speaker 2: and let me just get out of the way. The
Speaker 2: arch question may be alluded to by the former Prime
Speaker 2: Minister Johnson as well. Should the BBC leave as a
Speaker 2: publicly funded effort and join private enterprise.
Speaker 6: Would I would say not. I would say that brilliance
Speaker 6: of the baby It was designed as an institution that
Speaker 6: would be fairer and offer truth and fairness to a
Speaker 6: British audience at subsequently to a worldwide audience with a
Speaker 6: worldwide news network, and in many ways American television was
Speaker 6: built on that standard. And so giving that trust up,
Speaker 6: giving that opportunity up, I think.
Speaker 7: Would be a mistake.
Speaker 2: How do they restructure emotionally? How do they recapture the
Speaker 2: minds of the United Kingdom to say you can trust us.
Speaker 2: It's been shattered with this debate with the president, the
Speaker 2: President Trump folks suggesting you will sue the BBC for
Speaker 2: many billions of dollars. Howard Stringer, what is the first
Speaker 2: step to rekindle a new trust with the British Well?
Speaker 6: I think with all great institutions, leadership is critical and
Speaker 6: presumably there will be discussions about who runs the BBC
Speaker 6: now very quickly and how the board is constructed, and
Speaker 6: lessons will be learned. I think that's been true across
Speaker 6: the board.
Speaker 4: When I was.
Speaker 6: At CBS News we were under attacked by the government.
Speaker 6: I had conversations in a lawsuit with General Westberland, and
Speaker 6: before that, I had conversations with Presidents Nixon and Reagan.
Speaker 6: The news divisions. News division is only a part of
Speaker 6: the BBC, but news divisions are always the threat to politicians,
Speaker 6: and politicians tend to dislike you if you suggest they're wrong.
Speaker 6: And so the BBC has always been had a reputation
Speaker 6: for fairness. Now it's under attack now and I think
Speaker 6: I think lessons will be learned regardless of what we
Speaker 6: feel about it. But the BBC is very important to
Speaker 6: global democracy and I think President Trump knows that.
Speaker 2: Howard Stringer with this Sir Howard Stringer, folks this morning
Speaker 2: here with all of his work with Sony and CBS
Speaker 2: News over the years. We welcome all of you in
Speaker 2: particularly the United Kingdom this morning with the uproar over
Speaker 2: the bb C. Paul Sweeney with Sir Howard.
Speaker 5: Howard, how does the BBC, How is it positioned in
Speaker 5: the UK today in the media overall media landscape?
Speaker 4: Maybe how has that changed over time? Well?
Speaker 6: I think I think it's misunderstood or dimly perceived in
Speaker 6: the US. After all, I spent most of my life
Speaker 6: in America. I work thirty years at CBS. But today
Speaker 6: the BBC still has the top rated entertainment broadcast in
Speaker 6: the way that would be CBS today would be proud,
Speaker 6: or NBC would be proud. I mean before Christmas the
Speaker 6: top ten programs on television at England were BBC programs.
Speaker 6: But this story is about news. News is always the
Speaker 6: catalyst for politicians who disagree with opinions that they perceive
Speaker 6: to be either unfair or inappropriate. That was true when
Speaker 6: I was at CBS, and it's true it's true in
Speaker 6: England today. So it's a lesson for both sides. If
Speaker 6: you're going to deal with presidents and deal with issues,
Speaker 6: you've got to be fair and you've got to have
Speaker 6: the audience believe in the institutions you represent. And for
Speaker 6: many years, the BBC is was a byword for trust
Speaker 6: and fairness around the world worldwide news. The BBC operation
Speaker 6: is the most trusted globally and I've had people call
Speaker 6: me many times in the last few weeks saying protect
Speaker 6: us because we watched the BBC. Because nothing else works
Speaker 6: for us in wherever country they're calling from. So the
Speaker 6: President of the United States is observed a moment that
Speaker 6: is a challenge to the BBC news operation, which I
Speaker 6: think may understand and accept and apologies should maybe have
Speaker 6: been offered earlier earlier, but I think the BBC knows
Speaker 6: what its responsibilities are.
Speaker 5: Howard, do you believe that the damages being sought by
Speaker 5: President Trump are reasonable or how do you think about
Speaker 5: that side?
Speaker 6: I think it's reasonable, But I also think that the
Speaker 6: President Trump knows Britain very well. I knew him personally
Speaker 6: and he was very generous to me, and suing the
Speaker 6: BBC is sending a message that be fair, be true
Speaker 6: to yourself. Whether or not England will play a billion dollars,
Speaker 6: I don't. I doubt that they will, and I doubt
Speaker 6: that President Trump really wants that. I think he wants
Speaker 6: the BBC, in a funny kind of a way to behave.
Speaker 2: We welcome all of you worldwide on YouTube, our new
Speaker 2: digital distribution, and of course on radio from our various
Speaker 2: sources ninety nine one FM in Washington, ninety two nine
Speaker 2: FM in Boston, Bloomberg eleven three or in New York
Speaker 2: Sir Howard Stringer with us this morning, with his decades
Speaker 2: of work. You hear heard him speak of General Wes Moreland.
Speaker 2: There what takes us a star back? Just to give
Speaker 2: you a little vignette, Sir Howard Stringer at a very
Speaker 2: young age answering telephones backstage for the Ed Sullivan Show.
Speaker 2: This goes back a few decades, Sir Howard, let me
Speaker 2: ask a delicate question of the United Kingdom. The present
Speaker 2: beliaguered and resigned leader of the BBC is perceived as
Speaker 2: a marketing guy. You were in the New York Times
Speaker 2: talking about this. How does the bb get back to
Speaker 2: the intensity you're speaking about? Do they have to find
Speaker 2: a world class journalist to drive forward?
Speaker 4: Well?
Speaker 6: I I think that the mistakes that were made, which
Speaker 6: have been accumulative presented accumulatively, gives a mistaken impression that
Speaker 6: there's something institutionally wrong with the BBC News. These were
Speaker 6: mistakes that have now been acknowledged and should have been
Speaker 6: acknowledged earlier. But I don't think there's anything about the
Speaker 6: BBC that should be suspect. I think the BBC, like Britain,
Speaker 6: is an astonishing ally of the United States, are an
Speaker 6: important one, and I think the President of the United
Speaker 6: States knows that. In my dealings with him, I think
Speaker 6: he knew it, and he was always fair and generous.
Speaker 6: I think he's fired a shot across the brows of
Speaker 6: the BBC. They will pay attention. They are made changes
Speaker 6: and that will be good. But the BBC is an
Speaker 6: important global institution, and I don't believe who stopped breaking
Speaker 6: up great institutions during a crisis.
Speaker 2: Look sir, just one final question if we could in
Speaker 2: the BBC, and we must turn to so much going
Speaker 2: on in Paul Sweeney's world in New York is as
Speaker 2: well in talking to our Eric Larsen off our desk
Speaker 2: on Queen Victoria's Street and looking at the litigation here
Speaker 2: as well, how will that play out in the United
Speaker 2: Kingdom and form our American audience of how a lawsuit
Speaker 2: in London is different than a lawsuit wherever in the
Speaker 2: United States.
Speaker 6: I'm not sure I really understand that question.
Speaker 2: Well, I mean, the litigation is going to be in
Speaker 2: the United Kingdom, how is it different there? If the
Speaker 2: President sues the BBC, then it would be here.
Speaker 6: Well, I was sued in America, as you remember, over
Speaker 6: the General westblin I think, and it went on for years,
Speaker 6: and I don't think. I don't think President Trump will
Speaker 6: keep at this. I think he is much bigger fish
Speaker 6: to fry. I think he has sent a very important message.
Speaker 6: I think the BBC will respond accordingly, and I hope
Speaker 6: he doesn't expect the British public to pay that kind
Speaker 6: of money. I think his generosity will will save the day.
Speaker 2: Sir Hartstringer with a sok thrilled to have them with
Speaker 2: us this morning. Let me migrate, Sir Howard to the
Speaker 2: United States and ask a question that so many will
Speaker 2: resonate with so much of our listeners and viewers. Could
Speaker 2: Dan rather do the news today?
Speaker 6: Does Dan rather watch?
Speaker 2: Could he do the news today? Could Dan rather grind
Speaker 2: his leadership in news off the desk of CBS as
Speaker 2: he did years ago? Could he do that in this
Speaker 2: environment today?
Speaker 4: Well, he can't do it now.
Speaker 6: I mean, he's still in good shape the last time
Speaker 6: I spoke to him, and I spoke to him quite recently.
Speaker 6: But no, I don't think he would want to become
Speaker 6: an anchorman in his nineties and I don't want to
Speaker 6: become a director general in my eighties either. But I
Speaker 6: think so much has changed in America has been fractionalized
Speaker 6: and the networks aren't as strong as they used to be.
Speaker 6: When I was running the evening news, we had a
Speaker 6: twenty six share of the news compared to ABC twenty
Speaker 6: and NBC twenty. That combined audience was almost seventy percent
Speaker 6: of the national audience. That isn't possible in the United
Speaker 6: States to day because of the fractionalization and the growth
Speaker 6: of competitive social media. So you know, another Dan rather
Speaker 6: is likely to be unlikely. But I am not watching
Speaker 6: from a distance only current Ankormen and I don't know who.
Speaker 6: I don't know anyone will ever have the power of
Speaker 6: Walter and Down again or Tom brok or and Roger
Speaker 6: Mount and so forth. It's just the nature of the world.
Speaker 6: It's changing, But I think retaining some of the values,
Speaker 6: and the values of the most important are trust and honesty.
Speaker 6: And as long as we abide by those and the
Speaker 6: BBC resurrects itself its reputation by concentrating on what it
Speaker 6: does best, we'll survive this, just as CBS did survive.
Speaker 5: General Westmorth, Sir Howard, from your years at Sony Corporation,
Speaker 5: a major global media and entertainment company. What do you
Speaker 5: make of the landscape now so much has changed with
Speaker 5: Netflix and streaming and so on and so forth. How
Speaker 5: do you feel like some of these traditional large global
Speaker 5: media companies like Sony, like the Walt Disney Company, like
Speaker 5: Warner Brothers. How do you think that landscape shakes out here?
Speaker 6: That's a billion dollar question. Unfortunately, it is a billion
Speaker 6: dollar question. Money plays a much bigger role than it
Speaker 6: used to. There were three networks, and then Rupert Modoc
Speaker 6: built up Fox, so there were four networks, and now
Speaker 6: it's scattered and so forth, and people get what they want.
Speaker 6: But I think keeping keeping solidarity and solidity at the
Speaker 6: center of the core institutions, you will find an audience,
Speaker 6: just as movies do. So I'm not prone to despair.
Speaker 6: I keep myself amused today doing radio dramas, and I
Speaker 6: still reach people in America and England.
Speaker 2: So I.
Speaker 6: Don't think there's plenty of good material. It's just not
Speaker 6: as concentrated as it used to be. But you can't
Speaker 6: look at the past. As somebody once said, the past
Speaker 6: is a foreign country, and they did things differently there.
Speaker 4: Sir Howard.
Speaker 5: So going forward here, I mean it's interesting the world's
Speaker 5: changed so much in terms of delivering content to consumers.
Speaker 5: Consumers can now get anything they want, whenever they want,
Speaker 5: wherever they want. Is this a better world for consumers
Speaker 5: and content?
Speaker 4: Do you believe?
Speaker 2: Well?
Speaker 6: I think it's more complicated because so many choices are
Speaker 6: a bit confusing, and so truth becomes a little more obscure.
Speaker 6: As people listen to whoever they listened to yesterday, they
Speaker 6: switched to somebody else today. So I think our customers
Speaker 6: are maybe a bit confused. But we still have to
Speaker 6: provide great content and people will find it, people will watch.
Speaker 6: And I saw the other day a new movie about
Speaker 6: Shakespeare as a young man and his and his and
Speaker 6: his family, and I thought, well, there's a lot of
Speaker 6: talent in America and it still will attract an audience.
Speaker 6: So breathe a sigh of relief and keep on trying.
Speaker 2: Sir Harard, thank you so much for joining Bloomberg this morning.
Speaker 2: Sir Hard Stringer, of course, with all of his work
Speaker 2: at Sony, I should note that he had a radio
Speaker 2: broadcast earlier this year on the BBC called Central Intelligence,
Speaker 2: which won many different awards in the United Kingdom. Stay
Speaker 2: with us more from Bloomberg Surveillance coming up after this.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Apple Corplay 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.
Speaker 2: The Newspapers Folks with Lisa Matteo.
Speaker 8: Okay, see you touched upon it. So we're going to
Speaker 8: dive into the season two of land Man. Okay, uh,
Speaker 8: you know it's The Modern Industry, a drama about the
Speaker 8: oil industry. It's what makesweeney and oil experts.
Speaker 4: You're telling you.
Speaker 8: Okay, So the Telegraph is saying to me, Moore steals
Speaker 8: the show.
Speaker 4: Okay.
Speaker 8: So she plays Cammy Miller. Right, she's the wife of
Speaker 8: this powerful oil guy.
Speaker 6: Right.
Speaker 9: No, no, no, she's friends with Billy.
Speaker 4: Bob she was it was it was John John Ham, yes, right.
Speaker 2: And she's married to mad Men but.
Speaker 4: He's not in this season. He died, Oh he died, died, Yes,
Speaker 4: give us muff.
Speaker 9: So, okay, she's in charge of the company now.
Speaker 8: So she gave this great speech and everyone is talking
Speaker 8: about it.
Speaker 4: So what she did on the show.
Speaker 8: She was talking to all these big oil wigs and
Speaker 8: she just laid she said, the only difference between me
Speaker 8: and Monty is that I'm meaner.
Speaker 9: Test me and you'll find.
Speaker 4: Out how much God sounds like you and them.
Speaker 8: But it was like she was in the background right
Speaker 8: for a little bit, and now she's kind of like
Speaker 8: the less of the buttlight.
Speaker 5: You're doing a screening and afternoon I'm gonna do a
Speaker 5: screening sifting on the train home.
Speaker 4: Ye, on the train home. How to do exactly did.
Speaker 2: You get a signal when you go under the water?
Speaker 4: Download it?
Speaker 2: I don't know how to do that.
Speaker 4: Yeah.
Speaker 9: Okay, we're talking about the ultra rich.
Speaker 4: Okay.
Speaker 8: They are spending a lot of money because they want
Speaker 8: to live in extreme privacy. This was in the journal. Okay,
Speaker 8: so they're paying big bucks. They want exclusive experiences, right.
Speaker 8: They want private restaurants, clubs that save them time, customized service.
Speaker 8: So when they get to the table, their favorite cocktails
Speaker 8: already sitting there. They have you know, chopsticks with their
Speaker 8: names on it, so it's all set for them. They
Speaker 8: arrive at hotels through back entrances. They go straight to
Speaker 8: the elevator to the lobby. They don't have to go
Speaker 8: through the lobby. They go straight to the elevator right
Speaker 8: up to their suite. They have a butler waiting for them. Okay,
Speaker 8: it's about not waiting to be in crowd. So they
Speaker 8: have this place. It's actually being built in Florida, the
Speaker 8: Bentley Residence's condo tower. It's under construction in Sunday Aisles.
Speaker 8: Nice car elevators take the residence straight up to their homes.
Speaker 4: Yep, that's how you do it. It's crazy, can't beleave.
Speaker 4: I can't believe you people wait in the lobby, Lisa.
Speaker 8: I did six million dollars from when you can't believe
Speaker 8: people wait in the lobby. Yeah, but it's it's a
Speaker 8: d People want the social clubs, right. They're paying fifteen
Speaker 8: thousand dollars another fifteen thousand dollars annually to be part
Speaker 8: of these social clubs and just make them feel, you know.
Speaker 5: Like they're good for them street. Yeah, I'll see them
Speaker 5: at the Cracker Barrel on Sunday morning. Maybe not maybe
Speaker 5: not yeah maybe not all. Okay, what else we got?
Speaker 8: Okay, so the K pop demon Hunters, right, it's a big,
Speaker 8: big going Okay, Netflix, I finally watch it. So all
Speaker 8: the kids are into it to the deal could too.
Speaker 8: So the school has actually banned the singing of the
Speaker 8: song from the show in the school. This is from
Speaker 8: the BBC. It's called the Lilliput Church of England Infant
Speaker 8: School in Pool, Dorset.
Speaker 9: Hopefully I'm saying that right. So they sent a message
Speaker 9: to parents.
Speaker 8: They said singing the songs is not good because it
Speaker 8: keeps against it goes.
Speaker 9: Against its Christian ethos.
Speaker 4: Oh boy.
Speaker 9: So some of the parents said, you know, we like
Speaker 9: the song.
Speaker 8: One dad said, my daughter likes it. Why can't she
Speaker 8: sing it if she like? It's this whole big you know,
Speaker 8: it's starting to get an uproar now. But the school
Speaker 8: is kind of banning these songs and it's huge.
Speaker 9: Here you have all the kids.
Speaker 8: It was a Halloween thing, like all the kids were
Speaker 8: dressed up as K pop demonhameters.
Speaker 3: I know.
Speaker 4: I don't know. Okay, thank goodness, I missed that.
Speaker 9: It's still on Netflix. Okay, maybe you could do that.
Speaker 2: It's the streaming thing. Paul has overwhelmed us. I mean,
Speaker 2: it's our new entertainment period.
Speaker 5: It's overwhelmed Hollywood, the brainiacs in Hollywood, the billionaires in Hollywood.
Speaker 4: They don't know what to do with streaming.
Speaker 2: I don't disagree with that. We're not going to talk
Speaker 2: talk about streaming with Sir Howard Stringer in the nine
Speaker 2: o'clock hour, Sir Howard on his BBC the Newspapers. Lisa Mateo,
Speaker 2: thank you so much.
Speaker 1: This is the Bloomberg Surveillance Podcast, available on apples, Spotify,
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