Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Sing my best idea and we welcome all of you.
Speaker 2: Two ideas from today's show, and they're very different ideas,
Speaker 2: but yet they all close down to mathematics first in
Speaker 2: an economics, investment, finance, and even a body of mathematics
Speaker 2: and international relations. This is about Blackrock. Eric Belchunis on
Speaker 2: Lawrence Fink and their huge commitment to the bitcoin market,
Speaker 2: But first the actual use of mathematics at Blackrock. Jeffrey
Speaker 2: Rosenberg is absolutely wonderful, prodigious mathematics out of Minnesota, out
Speaker 2: of Wisconsin. And then on the acclaimed Tupper School at
Speaker 2: Carnegie Mellon. We got into the weeds. I mean, I'm sorry,
Speaker 2: or five people drove off the New York State Thruway
Speaker 2: listen to this. I mean, I hope you're okay. But
Speaker 2: Jeffrey Rosenberg here on this strange word in mathematics, uncertainty.
Speaker 3: You know, it's interesting time you talk a lot about,
Speaker 3: you know, the math and the science that we use,
Speaker 3: and a lot of the math and the science that
Speaker 3: we use is the mathematics of uncertainty rights. It's using
Speaker 3: probability and statistics and risk models to try to quantify uncertainty,
Speaker 3: because that's really what it's about. You know, the cop
Speaker 3: Douglass function is nice. It gives you a very certain
Speaker 3: form with a very uncertain input. And that's a lot
Speaker 3: of what we see in kind of the mathematics of
Speaker 3: economics is that there's a there's a proposal of how
Speaker 3: the economy works, and it's very nice and clean. The
Speaker 3: problem is a lot of the inputs are unknown, and
Speaker 3: that's really what we're dealing with. Whether it's kind of
Speaker 3: the role of AI, the role of technology in changing
Speaker 3: total factor productivity and our inability to measure that, or
Speaker 3: other things that we are talking about before in reference
Speaker 3: to the tailor rule. The other you know, kind of
Speaker 3: big uncertainty is you know, the real neutral rate, we
Speaker 3: don't know what that real neutral rate is, or something
Speaker 3: even more, you know, kind of basic, which is we
Speaker 3: measure economic data that we think we know with certainty,
Speaker 3: like growth and inflation or our payrolls or employment, we
Speaker 3: measure it with error. So when there were revisions, there's
Speaker 3: a lot, So it's really about dealing with that uncertainty.
Speaker 2: Jeffrey Rosenberg there with blackrit just can't say enough about
Speaker 2: his value add to all of Bloomberg's surveillance, including on
Speaker 2: Job's Day, and of course the FED decides as well,
Speaker 2: which brings it over to the leadership of Blackrock. Gary
Speaker 2: Gensler went out and said, okay, into the bitcoin pool.
Speaker 2: Everybody dived in, and many would say, no one more
Speaker 2: than Blackrock. We are advantaged by the expertise of Eric
Speaker 2: Belchunis with that question. If you're in a panel, you're
Speaker 2: at a conference, when he speaks, the world stops and
Speaker 2: everybody listens. Eric Belchunis on Blackrock and Bitcoin, Well, it is.
Speaker 4: Such a small sliver of Larry's whole world. That's what
Speaker 4: I told the crypto people. They think this is such
Speaker 4: a big deal. It's a nice hit, but it's point
Speaker 4: one percent of their revenue. So Larry is doing everything right.
Speaker 4: In my opinion. To compete in the Vanguard era, you
Speaker 4: have to hustle your butt off and go everywhere and
Speaker 4: try everything pretty much and try to get new revenue streams.
Speaker 4: So I just think he's just opportunistic, and you have
Speaker 4: to be to compete with Vanguard, and BlackRock's the only
Speaker 4: firm that competes with Vanguard regularly and does it well.
Speaker 2: That's the most intelligent thing I've heard on this. Eric
Speaker 2: belchunis there on the dash to bring in gazillions of
Speaker 2: dollars off of bitcoin and frankly other digital currencies as
Speaker 2: as well. Excuse me, we're into earning season, Jamie Diamond
Speaker 2: with Lisa A. Bramowitz. So I guess be back New
Speaker 2: York on Friday to go over earnings and JP Morgan
Speaker 2: will bring you that coverage. Many worthy schedule there to
Speaker 2: provide wisdom, and of course the inflation report on Thursday.
Speaker 2: Really looking forward to that. We got PPI in CPI
Speaker 2: and the jumble of it well, I think have some value.
Speaker 2: But boy, if things shifted from a fifty basis point
Speaker 2: to a twenty five basis point. Guests forward and Torsten
Speaker 2: Slock today with Apollo Global Management, saying, look, there's just
Speaker 2: too much buoyancy out there. You may see no more
Speaker 2: rate cuts to the economy in twenty twenty four. We're
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