1 00:00:00,280 --> 00:00:04,720 Speaker 1: This is Bloomberg Wall Street Week. The global push into infrastructure, 2 00:00:04,760 --> 00:00:08,480 Speaker 1: breaking the IPO logjam in text, the financial stories that 3 00:00:08,560 --> 00:00:11,680 Speaker 1: shape our world, cutting inflation without losing jobs. Do we 4 00:00:11,800 --> 00:00:14,440 Speaker 1: need rate cuts? And if so? How many? Investing in 5 00:00:14,480 --> 00:00:17,079 Speaker 1: a time of geopolitical turmoil. Through the eyes of the 6 00:00:17,120 --> 00:00:21,520 Speaker 1: most influential voices. Ten Rogueff, economist of Harvard, former FDIC 7 00:00:21,680 --> 00:00:25,160 Speaker 1: had Shila bet Ge CEO, Larry Coulp, San Francisco FED 8 00:00:25,160 --> 00:00:27,360 Speaker 1: President Mary Daily Bloomberg. 9 00:00:26,840 --> 00:00:30,560 Speaker 2: Wall Street Week with David Weston from Bloomberg Radio. 10 00:00:30,280 --> 00:00:35,080 Speaker 1: A presidential debate, an historic commercial spacewalk, and Europe leads 11 00:00:35,120 --> 00:00:38,480 Speaker 1: the way in rate cuts. This is Bloomberg Wall Street Week. 12 00:00:38,600 --> 00:00:43,199 Speaker 1: I'm David Weston. This week, Devre Lair of Basselina on 13 00:00:43,200 --> 00:00:46,920 Speaker 1: what's gone wrong with China for Sheer Sharma of Rockefeller 14 00:00:46,920 --> 00:00:49,600 Speaker 1: International on what's gone wrong with housing prices in the 15 00:00:49,720 --> 00:00:52,760 Speaker 1: United States? And Michael Wolf of Activate on what the 16 00:00:52,840 --> 00:01:09,399 Speaker 1: explosion in online gambling means for the media world. We 17 00:01:09,520 --> 00:01:12,520 Speaker 1: start with the upcoming election and what that means potentially 18 00:01:12,600 --> 00:01:15,039 Speaker 1: for Global Wall Street and we're delighted to have with us. 19 00:01:15,040 --> 00:01:18,199 Speaker 1: Blair Ephron. He is co founder of Centerview partners. Blair. 20 00:01:18,200 --> 00:01:20,160 Speaker 1: Great to have you back with us on Wall Street Week. 21 00:01:20,280 --> 00:01:22,920 Speaker 1: We had a debate this week which gave us some 22 00:01:22,959 --> 00:01:26,160 Speaker 1: sort of a peek into the economic plans of Kamala Harris, 23 00:01:26,200 --> 00:01:28,400 Speaker 1: the vice president on hand, the former president Donald Trump 24 00:01:28,480 --> 00:01:29,880 Speaker 1: or together. What did we learn from it? 25 00:01:30,240 --> 00:01:31,280 Speaker 3: So we learned a few things. 26 00:01:31,880 --> 00:01:34,840 Speaker 4: We learned who Kamala Harris was on a broad basis, 27 00:01:35,080 --> 00:01:37,520 Speaker 4: those who know her well and those non business community 28 00:01:38,080 --> 00:01:40,399 Speaker 4: no she is. They expected her to do what she did, 29 00:01:40,480 --> 00:01:47,280 Speaker 4: which was to be presidential, authoritative, approachable, well rounded on 30 00:01:47,319 --> 00:01:50,240 Speaker 4: the issues, and disciplined. And I think it played as 31 00:01:50,240 --> 00:01:56,000 Speaker 4: a big contrast obviously to form prisident Trump talking about 32 00:01:56,280 --> 00:02:00,680 Speaker 4: dogs and the like. But most importantly I got an 33 00:02:00,720 --> 00:02:03,360 Speaker 4: email immediately last night from a fortune we called S 34 00:02:03,360 --> 00:02:06,000 Speaker 4: and P one hundred CEO who had met her but 35 00:02:06,080 --> 00:02:07,320 Speaker 4: was on the fence, and. 36 00:02:07,240 --> 00:02:09,120 Speaker 3: He said, boy, this is really just positive to me. 37 00:02:10,200 --> 00:02:12,440 Speaker 3: She knows how to lead explorers. 38 00:02:12,440 --> 00:02:15,000 Speaker 1: To talk about the plan specifically, I mean atmosphere is 39 00:02:15,040 --> 00:02:17,560 Speaker 1: really counted election, as we know, but also it counts 40 00:02:17,600 --> 00:02:19,239 Speaker 1: what these people plan to do. You are in a 41 00:02:19,280 --> 00:02:22,040 Speaker 1: particular position to understand what the vice president might plan 42 00:02:22,160 --> 00:02:24,280 Speaker 1: to do. An econoic policy. You work with her and 43 00:02:24,320 --> 00:02:26,960 Speaker 1: her team fairly regularly, give us a sense of exactly 44 00:02:27,000 --> 00:02:28,720 Speaker 1: how she would address the middle class, because that's the 45 00:02:28,760 --> 00:02:30,679 Speaker 1: way she started a debate. I really care about the 46 00:02:30,680 --> 00:02:32,880 Speaker 1: middle class. What is she proposing that would actually make 47 00:02:32,880 --> 00:02:34,720 Speaker 1: a difference for the middle class on anybody? 48 00:02:35,360 --> 00:02:36,600 Speaker 3: Four int one thousand or less. 49 00:02:36,800 --> 00:02:42,120 Speaker 4: We'll actually see lower taxes. Two, if you're looking for 50 00:02:42,360 --> 00:02:44,960 Speaker 4: a new home, we'll get a twenty five thousand dollars credit, 51 00:02:45,919 --> 00:02:48,200 Speaker 4: and state and local communities will have incentives to build 52 00:02:48,240 --> 00:02:51,840 Speaker 4: more quickly, cut through a red tape and make it 53 00:02:51,880 --> 00:02:52,560 Speaker 4: more affordable. 54 00:02:53,480 --> 00:02:53,720 Speaker 3: Three. 55 00:02:53,919 --> 00:02:55,359 Speaker 4: She looks at the middle class and she says it's 56 00:02:55,400 --> 00:02:57,680 Speaker 4: not enough for healthcare to have and sulend go down 57 00:02:57,720 --> 00:02:58,560 Speaker 4: to thirty five dollars. 58 00:02:58,760 --> 00:03:01,400 Speaker 3: You need lower health care costs more generally and. 59 00:03:01,440 --> 00:03:04,359 Speaker 4: Very importantly, David, you start thinking about what she wants 60 00:03:04,400 --> 00:03:06,359 Speaker 4: to do on the innovation economy. How do you help 61 00:03:06,400 --> 00:03:10,680 Speaker 4: middle class families do well? You support them in building businesses. 62 00:03:10,680 --> 00:03:12,720 Speaker 4: The idea that she wants to see twenty five million 63 00:03:13,040 --> 00:03:15,840 Speaker 4: new applications during four years his. 64 00:03:15,800 --> 00:03:19,280 Speaker 3: Presidency is a big deal. And she's raised the deductibility 65 00:03:19,320 --> 00:03:20,240 Speaker 3: to fifty thousand dollars. 66 00:03:20,240 --> 00:03:24,200 Speaker 4: In terms of expenses. She's making it so that if 67 00:03:24,240 --> 00:03:27,640 Speaker 4: you have an idea, if you have an opportunity, she 68 00:03:27,680 --> 00:03:31,240 Speaker 4: wants to help you most importantly. Also as importantly, she's 69 00:03:31,280 --> 00:03:35,520 Speaker 4: looking at skills based jobs, not just college based jobs, 70 00:03:35,760 --> 00:03:37,800 Speaker 4: and she wants to see a lot of private public 71 00:03:37,840 --> 00:03:42,000 Speaker 4: partnership do that. And then in terms of the middle class, again, 72 00:03:42,480 --> 00:03:46,000 Speaker 4: she's done nearly a trillion dollars of public private partnerships 73 00:03:46,000 --> 00:03:50,400 Speaker 4: across the country, and that money is spent in communities, 74 00:03:50,400 --> 00:03:53,880 Speaker 4: whether it's Chips up in Syracuseton, New York, Arizona, Ohio. 75 00:03:54,280 --> 00:03:57,120 Speaker 4: Those are all creating great jobs or the middle class. 76 00:03:57,680 --> 00:03:59,720 Speaker 1: There's no such thing as a free lunch. As you 77 00:03:59,720 --> 00:04:02,920 Speaker 1: go through those programs, there are price tags, substantial price 78 00:04:02,960 --> 00:04:04,760 Speaker 1: tags attached to each number one of them. How is 79 00:04:04,760 --> 00:04:06,040 Speaker 1: she going to pay for it? If she can get 80 00:04:06,040 --> 00:04:06,400 Speaker 1: them done? 81 00:04:06,480 --> 00:04:10,840 Speaker 4: So, she is incredibly focused on fiscal discipline, but she's 82 00:04:11,320 --> 00:04:14,160 Speaker 4: doing it in a way that is everybody pays their 83 00:04:14,160 --> 00:04:17,320 Speaker 4: fair share, but not necessarily punitively. So the highest tax 84 00:04:17,360 --> 00:04:20,120 Speaker 4: bracket goes to thirty nine point six percent. We've been 85 00:04:20,120 --> 00:04:23,560 Speaker 4: there before. Cap gain is twenty eight percent. We've been 86 00:04:23,560 --> 00:04:27,680 Speaker 4: there before. Ronald Reaguan's a twenty eight percent billionaire attacks. 87 00:04:27,720 --> 00:04:30,159 Speaker 4: What she's telling you is she will figure out responsibly 88 00:04:30,600 --> 00:04:32,559 Speaker 4: how billionaires pay their fair share. 89 00:04:32,720 --> 00:04:33,720 Speaker 3: And I say responsibly. 90 00:04:33,800 --> 00:04:35,839 Speaker 4: You have to pay attention to what she says about 91 00:04:35,839 --> 00:04:38,039 Speaker 4: her plans versus what she doesn't say. 92 00:04:38,080 --> 00:04:38,760 Speaker 3: And there's a lot in. 93 00:04:38,720 --> 00:04:44,000 Speaker 4: The Biden Harris platform, like unrealized gains doesn't mean that's 94 00:04:44,000 --> 00:04:45,839 Speaker 4: where the candidate is. She's going to look at everything 95 00:04:45,880 --> 00:04:47,680 Speaker 4: and say, how can we raise that kind of revenue. 96 00:04:47,839 --> 00:04:48,799 Speaker 3: She looks at buybacks. 97 00:04:48,920 --> 00:04:51,520 Speaker 4: Right now stock buybacks are one percent. There has been 98 00:04:51,640 --> 00:04:54,719 Speaker 4: zero difference in impact on buybacks. In fact, twenty twenty 99 00:04:54,720 --> 00:04:57,800 Speaker 4: three was the largest amount of buybacks by companies ever. 100 00:04:58,200 --> 00:05:00,520 Speaker 4: That goes from one percent to four percent. So she's 101 00:05:00,600 --> 00:05:03,200 Speaker 4: highly focused on it. And she looks at the Trump 102 00:05:03,279 --> 00:05:07,000 Speaker 4: plan and she says that's upwards between four trillion to 103 00:05:07,000 --> 00:05:10,400 Speaker 4: five trillion have increased debt on top of the eight 104 00:05:10,400 --> 00:05:12,400 Speaker 4: trillion of debt that was created during his first term. 105 00:05:12,520 --> 00:05:14,320 Speaker 3: So she's very focused on the paid for. 106 00:05:14,360 --> 00:05:17,800 Speaker 1: Us very So the people who would be paying more 107 00:05:17,839 --> 00:05:19,480 Speaker 1: money are a lot of those people who are emailing 108 00:05:19,520 --> 00:05:22,200 Speaker 1: you after the debates. They are in that top tax bracket. 109 00:05:22,240 --> 00:05:25,560 Speaker 1: They're running companies will be affected. Why should Wall Street 110 00:05:25,600 --> 00:05:29,560 Speaker 1: support Kamala Harris given her emphasis on the middle class 111 00:05:29,560 --> 00:05:31,720 Speaker 1: and taking the money from some of the more wealthy. 112 00:05:31,880 --> 00:05:32,880 Speaker 3: Okay, so let's. 113 00:05:34,279 --> 00:05:39,159 Speaker 4: Put to bed something that people simply don't understand. The 114 00:05:39,240 --> 00:05:43,479 Speaker 4: markets have done better under democratic presidencies over the past 115 00:05:43,520 --> 00:05:45,480 Speaker 4: fifty years than Republican presidencies. 116 00:05:45,880 --> 00:05:47,040 Speaker 3: The third year of Divide. 117 00:05:46,839 --> 00:05:49,560 Speaker 4: Administration, which means no COVID impact versus the third year 118 00:05:49,560 --> 00:05:54,200 Speaker 4: of the Trump administration, which means no COVID impact, higher GDP, more. 119 00:05:54,080 --> 00:05:55,920 Speaker 3: Jobs, better market performance. 120 00:05:56,839 --> 00:06:03,280 Speaker 4: The CEO he or she wants stability, wants a free 121 00:06:03,360 --> 00:06:05,640 Speaker 4: market based economy, does not want to be sitting here 122 00:06:05,640 --> 00:06:08,839 Speaker 4: with ten and twenty percent tariffs across the board, which 123 00:06:08,880 --> 00:06:12,240 Speaker 4: is upwards of one percent hit. 124 00:06:12,120 --> 00:06:13,839 Speaker 3: To GDP seven hundred thousand jobs. 125 00:06:14,440 --> 00:06:18,520 Speaker 4: They want support from the public sector in a way 126 00:06:18,560 --> 00:06:20,599 Speaker 4: that helps their business. If they know what the certain 127 00:06:21,160 --> 00:06:23,000 Speaker 4: with certainty, what the environments will look. 128 00:06:22,920 --> 00:06:24,120 Speaker 3: Like, it helps them. 129 00:06:24,560 --> 00:06:29,640 Speaker 4: And I also do think the signally matters. When the 130 00:06:29,720 --> 00:06:35,200 Speaker 4: VP talks about business, she talks about small business, which 131 00:06:35,200 --> 00:06:36,960 Speaker 4: has been a big focus of hers for a long time. 132 00:06:37,360 --> 00:06:40,680 Speaker 4: She talks about the entrepreneurial business, the startup community, and 133 00:06:40,720 --> 00:06:42,960 Speaker 4: she talks about big business that we're all in here together, 134 00:06:43,360 --> 00:06:45,600 Speaker 4: aligned to figure out how to grow the economy for 135 00:06:45,760 --> 00:06:49,039 Speaker 4: broad based growth again back to the middle class. 136 00:06:49,040 --> 00:06:51,800 Speaker 1: And I think most CEOs understand that Blair take us 137 00:06:51,800 --> 00:06:54,080 Speaker 1: through your business at least the way I think the 138 00:06:54,080 --> 00:06:56,840 Speaker 1: business of deals. When you've been on before, you've predicted 139 00:06:56,839 --> 00:06:59,080 Speaker 1: that actually this year we'd start to see those deals 140 00:06:59,120 --> 00:07:03,000 Speaker 1: come back after all sort of a quass period. Are 141 00:07:03,040 --> 00:07:03,520 Speaker 1: we seeing it? 142 00:07:04,160 --> 00:07:06,280 Speaker 3: So it has come back a bit, and not just 143 00:07:06,320 --> 00:07:07,200 Speaker 3: deals but. 144 00:07:08,800 --> 00:07:12,559 Speaker 4: Financings as well, but it is by no means where 145 00:07:12,600 --> 00:07:14,760 Speaker 4: it will be. I think in twenty five there's still 146 00:07:14,760 --> 00:07:18,760 Speaker 4: been a lot of uncertainty for my world in terms 147 00:07:18,800 --> 00:07:23,480 Speaker 4: of the interest rate environment, in terms of the election 148 00:07:23,720 --> 00:07:26,240 Speaker 4: and what that would lead to things. Always the last quarter, 149 00:07:26,720 --> 00:07:30,000 Speaker 4: the last six months before an election always people settled 150 00:07:30,000 --> 00:07:33,240 Speaker 4: down and want to see what's going to happen, momentum 151 00:07:33,240 --> 00:07:38,760 Speaker 4: in the economy and rerogatory aspects. So it's it has 152 00:07:38,840 --> 00:07:43,520 Speaker 4: been a market where companies are still highly focused on 153 00:07:43,600 --> 00:07:46,400 Speaker 4: M and A, but I would say more highly focused 154 00:07:46,440 --> 00:07:49,040 Speaker 4: David on M and A that is more tactical rather 155 00:07:49,120 --> 00:07:53,360 Speaker 4: than large ten billion, twenty billion above transformational. I think 156 00:07:53,400 --> 00:07:55,640 Speaker 4: what you need for that which I do believe will 157 00:07:55,640 --> 00:08:00,400 Speaker 4: be coming. Is one interest rates to come down. Remember 158 00:08:00,440 --> 00:08:04,240 Speaker 4: the last four cycles we've had interest rate declines after 159 00:08:04,280 --> 00:08:08,120 Speaker 4: the first interest rate cut, growth has been on average 160 00:08:08,200 --> 00:08:11,320 Speaker 4: three percent GDP. The markets on average have been up 161 00:08:11,360 --> 00:08:14,480 Speaker 4: twenty percent. It becomes a tailwind. It is less relevant 162 00:08:14,560 --> 00:08:17,360 Speaker 4: whether rates come down over eighteen months under fifty basis 163 00:08:17,400 --> 00:08:21,080 Speaker 4: points versus one hundred. It's the trend, and it encourages 164 00:08:22,160 --> 00:08:25,600 Speaker 4: an investment from companies, whether it's in their own business, 165 00:08:25,640 --> 00:08:28,800 Speaker 4: making ten year bets or buying a business. And they 166 00:08:28,840 --> 00:08:32,160 Speaker 4: believe that they're in the right part of the curve, 167 00:08:32,480 --> 00:08:35,720 Speaker 4: they are more willing to make strategic ten year bets 168 00:08:35,720 --> 00:08:37,240 Speaker 4: in their investment. So I see I think you'll see 169 00:08:37,240 --> 00:08:41,160 Speaker 4: a lot of that. I think you'll also see a 170 00:08:41,160 --> 00:08:45,040 Speaker 4: lot of pent up demand for financings, and I would 171 00:08:45,040 --> 00:08:49,320 Speaker 4: expect that the markets both on equity and debt, but 172 00:08:49,320 --> 00:08:51,079 Speaker 4: particularly on equity would. 173 00:08:50,920 --> 00:08:51,719 Speaker 3: Open up quite a bit. 174 00:08:51,960 --> 00:08:56,520 Speaker 4: That gives companies currency and that matters. Then finally, I 175 00:08:56,520 --> 00:09:00,559 Speaker 4: think you see a balance between price EXTI between a 176 00:09:00,600 --> 00:09:03,520 Speaker 4: buyer and a seller much more not in line now 177 00:09:04,120 --> 00:09:06,480 Speaker 4: than they work perhaps in the beginning of twenty twenty four. 178 00:09:06,720 --> 00:09:09,559 Speaker 1: Take us through that interest rate analysis, more debate about 179 00:09:09,640 --> 00:09:12,839 Speaker 1: where does the FED end up? How important is that 180 00:09:12,920 --> 00:09:14,600 Speaker 1: in making decisions about making deals? 181 00:09:14,880 --> 00:09:15,480 Speaker 3: Great question. 182 00:09:15,559 --> 00:09:18,680 Speaker 4: I think it is so much less important than people 183 00:09:18,720 --> 00:09:19,400 Speaker 4: ascribe to it. 184 00:09:20,720 --> 00:09:22,080 Speaker 3: The CEO doesn't look. 185 00:09:22,400 --> 00:09:25,200 Speaker 4: At his or her balance sheet and says, wow, if 186 00:09:25,240 --> 00:09:27,680 Speaker 4: I can finance it three and a half percent versus 187 00:09:27,679 --> 00:09:31,840 Speaker 4: three seventy five percent, I'll do the transaction. You're making 188 00:09:31,920 --> 00:09:36,880 Speaker 4: a long term strategic decision. Therefore, what you're trying to 189 00:09:36,880 --> 00:09:40,800 Speaker 4: do is say what will long term the impact of 190 00:09:40,840 --> 00:09:42,600 Speaker 4: the economy, of the impact of the rate environment mean 191 00:09:42,679 --> 00:09:46,840 Speaker 4: to me? And when you see the curb decline, it 192 00:09:46,880 --> 00:09:53,679 Speaker 4: increases confidence, increases optimism, And that's the difference. I'm always 193 00:09:53,720 --> 00:09:56,400 Speaker 4: struck by how people are focused on what will happen 194 00:09:56,440 --> 00:09:59,560 Speaker 4: over the next three months and determining how they want 195 00:09:59,600 --> 00:10:03,640 Speaker 4: to make tre I understand for certain traders great, but 196 00:10:03,720 --> 00:10:07,520 Speaker 4: for my world, where you're talking about businesses, talking about companies, 197 00:10:07,920 --> 00:10:09,880 Speaker 4: they just don't have that mindset. They're looking at the 198 00:10:09,960 --> 00:10:13,960 Speaker 4: overall economic picture generally, of which the rate environment is 199 00:10:13,960 --> 00:10:14,600 Speaker 4: one part of it. 200 00:10:15,320 --> 00:10:17,480 Speaker 1: If there is a pent up demand for deals that's 201 00:10:17,520 --> 00:10:20,080 Speaker 1: sort of being held off for both when the FED 202 00:10:20,120 --> 00:10:23,000 Speaker 1: starts really cutting and where it's going. And for the elections, 203 00:10:23,360 --> 00:10:25,880 Speaker 1: where do you see particular demand that is pent up? 204 00:10:26,000 --> 00:10:28,360 Speaker 1: I mean, where are there transformationional areas? I mean, certainly 205 00:10:28,400 --> 00:10:30,400 Speaker 1: we cover media a lot, for example, there's a lot 206 00:10:30,400 --> 00:10:32,679 Speaker 1: in tech. Where do you see sectors that particularly might 207 00:10:32,679 --> 00:10:33,600 Speaker 1: be ripe for deals? 208 00:10:33,920 --> 00:10:36,240 Speaker 4: So I think actually most sectors. There's been in most 209 00:10:36,280 --> 00:10:39,920 Speaker 4: of these sectors, David, a couple of big deals already. 210 00:10:39,960 --> 00:10:43,400 Speaker 4: So talk about media. You know, Paramount obviously a big deal. 211 00:10:44,520 --> 00:10:48,319 Speaker 4: It's a sector that is entirely under disruption. You should 212 00:10:48,360 --> 00:10:52,200 Speaker 4: assume we will see more consumer you already saw a 213 00:10:52,200 --> 00:10:55,800 Speaker 4: big deal klean over Mars. I assume that will lead 214 00:10:55,880 --> 00:10:57,760 Speaker 4: other companies to think about what they want to do 215 00:10:58,320 --> 00:11:02,280 Speaker 4: tech in there have Finally, I think a calibration and 216 00:11:02,360 --> 00:11:05,559 Speaker 4: equalization between buyer expectations and seller expectation. 217 00:11:05,679 --> 00:11:07,280 Speaker 3: You'll see more there healthcare. 218 00:11:07,360 --> 00:11:09,880 Speaker 4: Healthcare has been busy throughout, no reason to think it 219 00:11:09,920 --> 00:11:14,160 Speaker 4: won't continue to be busy. So I would actually argue 220 00:11:14,640 --> 00:11:18,240 Speaker 4: it's not going to be from my perspective, just one 221 00:11:18,320 --> 00:11:20,800 Speaker 4: or two sectors. I think there'll be a general lifting 222 00:11:20,840 --> 00:11:24,160 Speaker 4: of the market. And to me that means a good 223 00:11:24,200 --> 00:11:26,439 Speaker 4: market in our world now is five trillion or above, 224 00:11:26,840 --> 00:11:28,760 Speaker 4: But a perfectly fine market is three and a half 225 00:11:28,800 --> 00:11:31,520 Speaker 4: trillion to four trillion. It's hard to imagine that we 226 00:11:31,520 --> 00:11:34,199 Speaker 4: don't have at least a perfectly fine market in twenty 227 00:11:34,200 --> 00:11:34,720 Speaker 4: twenty five. 228 00:11:35,240 --> 00:11:37,680 Speaker 1: Has the deal area been held back a bit by 229 00:11:37,880 --> 00:11:40,200 Speaker 1: private equity? Is that less of a factor for you 230 00:11:40,240 --> 00:11:42,280 Speaker 1: than it was a year or five years ago. 231 00:11:42,640 --> 00:11:45,080 Speaker 3: Absolutely. I think the private equity community. 232 00:11:46,360 --> 00:11:48,400 Speaker 4: Is thirty five to forty percent of the overall market 233 00:11:49,240 --> 00:11:49,880 Speaker 4: in a good year. 234 00:11:50,320 --> 00:11:52,839 Speaker 3: I'd be surprised if in twenty twenty five you. 235 00:11:52,800 --> 00:11:56,240 Speaker 4: Don't see that part of the market being very active, very. 236 00:11:56,280 --> 00:12:01,400 Speaker 1: Robust, and corporation's stepping into that to do their own deals. 237 00:12:01,440 --> 00:12:03,720 Speaker 3: Well, not so oparations are doing already. 238 00:12:03,760 --> 00:12:06,240 Speaker 4: Mostly you're seeing a lot of corporate activity already, and 239 00:12:06,360 --> 00:12:09,160 Speaker 4: I don't in any way think that's going to slow down. Remember, 240 00:12:09,320 --> 00:12:11,880 Speaker 4: the market ps are down two and a half points 241 00:12:12,120 --> 00:12:15,440 Speaker 4: from the peak a couple of years ago, and earnings 242 00:12:15,440 --> 00:12:17,920 Speaker 4: are still pretty good SMP five hundred earnings for this 243 00:12:18,000 --> 00:12:20,839 Speaker 4: year and for the next quarter, we'll again eighty percent 244 00:12:20,840 --> 00:12:23,960 Speaker 4: of the companies will all perform estimates. CEOs feel this 245 00:12:24,040 --> 00:12:28,000 Speaker 4: kind of tailwind, and my bet is that they will 246 00:12:28,000 --> 00:12:28,720 Speaker 4: invest against it. 247 00:12:28,960 --> 00:12:30,960 Speaker 1: Blair It's always great to have you on Wilsherbeg. Thank 248 00:12:31,000 --> 00:12:33,960 Speaker 1: you so much. Let's Blair e Fron of Centerview Partners 249 00:12:35,920 --> 00:12:39,400 Speaker 1: coming up. Football ratings are up and so is online 250 00:12:39,480 --> 00:12:42,760 Speaker 1: betting on the games. Are the two related? We ask 251 00:12:42,840 --> 00:12:47,200 Speaker 1: Michael Wolf of Activating. That's next on Wall Street Week 252 00:12:47,320 --> 00:12:48,119 Speaker 1: on Bloomberg. 253 00:12:49,640 --> 00:12:53,880 Speaker 2: This is Bloomberg Wall Street Week with David Weston from 254 00:12:54,000 --> 00:12:56,640 Speaker 2: Bloomberg Radio. 255 00:13:01,520 --> 00:13:04,040 Speaker 1: This is Wall Street Week. I'm David Weston. The NFL 256 00:13:04,120 --> 00:13:07,320 Speaker 1: season is now underway, which means a whole new season 257 00:13:07,440 --> 00:13:09,920 Speaker 1: of sports betting, at least for some fans. To take 258 00:13:10,000 --> 00:13:12,520 Speaker 1: us through this explosion and what it means for the 259 00:13:12,559 --> 00:13:16,160 Speaker 1: media of sports, we welcome back now Michael Wolf. He's Activated, 260 00:13:16,200 --> 00:13:18,960 Speaker 1: founder and CEO. Michael, always great to have you. Let's 261 00:13:19,000 --> 00:13:21,440 Speaker 1: talk about this sports betting, boy, it is everywhere. 262 00:13:22,160 --> 00:13:24,560 Speaker 5: I mean, if you look at overall in the US 263 00:13:24,720 --> 00:13:27,400 Speaker 5: we have where this year we're going to have about 264 00:13:27,400 --> 00:13:31,400 Speaker 5: one hundred and forty billion in legalized sports betting that 265 00:13:31,679 --> 00:13:34,120 Speaker 5: we forecast that within three years this is going to 266 00:13:34,120 --> 00:13:35,120 Speaker 5: be a two hundred billion. 267 00:13:35,480 --> 00:13:36,880 Speaker 6: But here's where the prize is. 268 00:13:37,000 --> 00:13:40,920 Speaker 5: There's five hundred billion of sports betting in the US 269 00:13:41,240 --> 00:13:43,760 Speaker 5: that is not legal. So what we're about to see 270 00:13:43,880 --> 00:13:49,600 Speaker 5: is the transition from illicit to legal, and so it's 271 00:13:49,640 --> 00:13:52,640 Speaker 5: like going from your bookie to bet MGM and DraftKings, 272 00:13:53,600 --> 00:13:55,120 Speaker 5: and that's what's going to explode. 273 00:13:55,200 --> 00:13:55,400 Speaker 7: Now. 274 00:13:55,640 --> 00:14:00,480 Speaker 5: The numbers for the NFL twenty three billion last year 275 00:14:00,520 --> 00:14:05,240 Speaker 5: in sports betting, thirty five billion this year, but almost 276 00:14:05,280 --> 00:14:07,920 Speaker 5: twenty six percent of that is one day the Super Bowl. 277 00:14:08,559 --> 00:14:11,120 Speaker 1: Wow, that's amazing. So there's a lot of upside at 278 00:14:11,160 --> 00:14:13,559 Speaker 1: least for somebody, maybe not for the bookies, but upside 279 00:14:13,600 --> 00:14:17,600 Speaker 1: for somebody Besides the DraftKings and the MGM sports who 280 00:14:17,640 --> 00:14:18,680 Speaker 1: else benefits from this? 281 00:14:19,280 --> 00:14:24,160 Speaker 5: For example, the leagues, well, the league's the NFL has 282 00:14:24,200 --> 00:14:26,720 Speaker 5: made about a billion dollars worth of deals with these 283 00:14:27,040 --> 00:14:29,880 Speaker 5: with all of the sports betting companies partnerships. But at 284 00:14:29,920 --> 00:14:34,120 Speaker 5: the same time, those sports betting companies are spending about 285 00:14:34,120 --> 00:14:38,120 Speaker 5: the same amount, about a billion dollars on advertising across 286 00:14:38,160 --> 00:14:41,520 Speaker 5: television and digital and other places. And so it's providing 287 00:14:41,560 --> 00:14:43,800 Speaker 5: a big, big boost to media companies. 288 00:14:44,280 --> 00:14:45,680 Speaker 6: And part of what's going. 289 00:14:45,640 --> 00:14:48,840 Speaker 5: To change is a lot of what's driven the growth 290 00:14:49,000 --> 00:14:51,680 Speaker 5: is the number of states that have legalized sports betting. 291 00:14:51,800 --> 00:14:55,880 Speaker 5: So we're about thirty nine states, so far, there's only 292 00:14:55,960 --> 00:14:59,400 Speaker 5: a couple that came online last year of Florida, Kentucky 293 00:14:59,360 --> 00:15:02,800 Speaker 5: and other places. It's not clear that there's going to 294 00:15:02,800 --> 00:15:05,480 Speaker 5: be anymore. So this is going to be about moving 295 00:15:05,520 --> 00:15:08,720 Speaker 5: that five hundred billion into that core sports betting. 296 00:15:09,160 --> 00:15:11,480 Speaker 1: Talk to us about what this means in streaming, because 297 00:15:11,480 --> 00:15:13,880 Speaker 1: that is the future obviously of the media companies that 298 00:15:13,920 --> 00:15:15,920 Speaker 1: are all trying to get there, trying to be profitable 299 00:15:15,960 --> 00:15:19,560 Speaker 1: even more than get there. How essential is sports to 300 00:15:19,600 --> 00:15:20,600 Speaker 1: a streaming strategy. 301 00:15:20,920 --> 00:15:24,560 Speaker 5: If we look at the top the top shows overall 302 00:15:24,600 --> 00:15:28,800 Speaker 5: on television, they're pretty much all sports and depending on 303 00:15:28,840 --> 00:15:31,360 Speaker 5: the time of the year, pretty much all NFL with 304 00:15:31,520 --> 00:15:35,359 Speaker 5: a couple of things like wrestling in the meantime. 305 00:15:35,720 --> 00:15:37,840 Speaker 6: But if you look going forward. 306 00:15:37,920 --> 00:15:41,240 Speaker 5: You can get the NFL on practically over the top 307 00:15:41,320 --> 00:15:45,400 Speaker 5: outside of television on streaming services only a very small 308 00:15:45,440 --> 00:15:48,120 Speaker 5: percentage of the games you're only going to be on television. 309 00:15:48,960 --> 00:15:51,000 Speaker 1: So what does that mean again for the leagues, because 310 00:15:51,040 --> 00:15:52,880 Speaker 1: it's good news for them if they have more bidders, 311 00:15:53,040 --> 00:15:55,360 Speaker 1: and every time I turn around there's an Amazon bidding 312 00:15:55,520 --> 00:15:57,840 Speaker 1: or an Apple bidding, Well we're. 313 00:15:57,480 --> 00:15:59,240 Speaker 5: About to see if you just look at the recent 314 00:15:59,440 --> 00:16:04,200 Speaker 5: NBA where the NBA was able to sell their games 315 00:16:04,320 --> 00:16:09,120 Speaker 5: pretty much across the board, whether it was Amazon or Disney. 316 00:16:09,280 --> 00:16:10,400 Speaker 6: We're going to see more of that. 317 00:16:10,440 --> 00:16:15,280 Speaker 5: These rights become extraordinarily valuable in a world where this 318 00:16:15,360 --> 00:16:18,440 Speaker 5: is what's getting people to go into these streaming services 319 00:16:18,480 --> 00:16:20,119 Speaker 5: and getting them to watch television. 320 00:16:20,680 --> 00:16:23,000 Speaker 1: So what does this mean for a company like Paramount. 321 00:16:23,000 --> 00:16:24,840 Speaker 1: We now know since we last talked, we know for 322 00:16:24,880 --> 00:16:27,800 Speaker 1: sure what you predicted, which is that mister Ellison actually 323 00:16:27,880 --> 00:16:28,720 Speaker 1: is going to run the place. 324 00:16:29,440 --> 00:16:30,840 Speaker 6: Well, it's fascinating. 325 00:16:30,920 --> 00:16:33,800 Speaker 5: Mister Ellison is going to run it, but he's bringing 326 00:16:33,800 --> 00:16:38,480 Speaker 5: in Jeff Schell, who ran NBC, really understands people don't realize. 327 00:16:38,480 --> 00:16:42,000 Speaker 5: He understands both the studio side of the business and 328 00:16:42,280 --> 00:16:46,960 Speaker 5: the network side, including the sports and the streaming business 329 00:16:47,000 --> 00:16:51,240 Speaker 5: through Peacock. So I would expect bringing in the new 330 00:16:51,280 --> 00:16:55,680 Speaker 5: management team would make a huge difference. To a large extent, 331 00:16:56,200 --> 00:16:59,520 Speaker 5: this company has really suffered from a lack of investment 332 00:17:00,120 --> 00:17:02,479 Speaker 5: and a lack of creative leadership. 333 00:17:03,680 --> 00:17:06,160 Speaker 1: Are they going to keep it all together? Would you expect? 334 00:17:06,240 --> 00:17:08,000 Speaker 1: Or are we going to have sort of if you will, 335 00:17:08,160 --> 00:17:11,399 Speaker 1: good company, bad company, the streaming and the studio on 336 00:17:11,440 --> 00:17:13,960 Speaker 1: the one hand, good company maybe some of the traditional 337 00:17:14,000 --> 00:17:15,440 Speaker 1: linear media not so good. 338 00:17:15,520 --> 00:17:18,399 Speaker 5: Well, here's the challenge. Most of these media companies still 339 00:17:18,480 --> 00:17:22,760 Speaker 5: make most of their money on linear, and the studios 340 00:17:23,080 --> 00:17:26,760 Speaker 5: and the streaming services for the moment aren't going to 341 00:17:26,800 --> 00:17:29,240 Speaker 5: make really make a lot of money. But each of 342 00:17:29,320 --> 00:17:33,280 Speaker 5: these networks, and the TV stations and the broadcast networks, 343 00:17:33,480 --> 00:17:35,800 Speaker 5: they have to learn to manage in a world where 344 00:17:35,840 --> 00:17:39,480 Speaker 5: there are fifty million cable subscribers. Just a few years ago, 345 00:17:40,000 --> 00:17:42,439 Speaker 5: we were at one hundred million homes in the US. 346 00:17:42,520 --> 00:17:46,000 Speaker 5: Practically every home in the US had some sort of 347 00:17:46,080 --> 00:17:51,600 Speaker 5: cable or satellite. Now our firm is forecasting that we're 348 00:17:51,600 --> 00:17:55,320 Speaker 5: going to go from seventy million homes around now to 349 00:17:55,480 --> 00:17:57,479 Speaker 5: within three years fifty million homes. 350 00:17:57,640 --> 00:17:59,840 Speaker 6: They're all going to learn how to manage against that. 351 00:18:00,160 --> 00:18:03,200 Speaker 5: But still there's a lot of upside through these assets. 352 00:18:03,200 --> 00:18:06,880 Speaker 1: Well, a lot fewer cable basic cable husholds, a lot 353 00:18:06,920 --> 00:18:10,359 Speaker 1: more streaming husholes. I saw a report on Bloomberg actually 354 00:18:10,400 --> 00:18:12,560 Speaker 1: that said that actually, the good news is streaming now 355 00:18:12,600 --> 00:18:15,439 Speaker 1: makes money. The bad news is Netflix makes more than 356 00:18:15,480 --> 00:18:17,920 Speaker 1: one hundred percent of the money because the other guys 357 00:18:17,920 --> 00:18:19,560 Speaker 1: are losing, but Netflix is making up for all the 358 00:18:19,600 --> 00:18:20,159 Speaker 1: other losses. 359 00:18:20,440 --> 00:18:23,000 Speaker 5: You know, if you look back in the history of media, 360 00:18:23,359 --> 00:18:26,200 Speaker 5: all of the cable networks lost money for their first 361 00:18:26,240 --> 00:18:28,399 Speaker 5: five or six years, and then they all started to 362 00:18:28,440 --> 00:18:31,800 Speaker 5: make money. We're just seeing a lot of competition. And 363 00:18:31,920 --> 00:18:34,520 Speaker 5: as much as they say they're going to reduce the 364 00:18:34,560 --> 00:18:38,919 Speaker 5: amount that they're spending on programming, it's a little deceptive 365 00:18:38,960 --> 00:18:41,479 Speaker 5: because they'll put that programming on their balance sheets. 366 00:18:41,560 --> 00:18:43,080 Speaker 6: They all have to keep spending. 367 00:18:43,119 --> 00:18:45,040 Speaker 5: They all have to spend to keep up with Netflix, 368 00:18:45,080 --> 00:18:46,840 Speaker 5: and they a of have to spend to keep up 369 00:18:46,880 --> 00:18:50,359 Speaker 5: with Amazon Prime. Prime video is also taking a lot 370 00:18:50,440 --> 00:18:53,600 Speaker 5: of people's viewing time, especially as they start to ad sports. 371 00:18:53,840 --> 00:18:55,720 Speaker 1: Thank you so much, Michael. Always a treat to have 372 00:18:55,760 --> 00:19:00,720 Speaker 1: you here. That is Michael Wolf of Activate Come Back Now. 373 00:19:00,800 --> 00:19:04,199 Speaker 1: Rushir Sharma. He is the chairman of Rockefeller International and 374 00:19:04,320 --> 00:19:07,760 Speaker 1: author most recently What Went Wrong with Capitalism? Roushure. Always 375 00:19:07,760 --> 00:19:08,880 Speaker 1: great to have you on the program. 376 00:19:08,960 --> 00:19:11,040 Speaker 3: I say you have a columna in. 377 00:19:10,920 --> 00:19:14,119 Speaker 1: The Financial Times this week about affordable housing, which has 378 00:19:14,160 --> 00:19:17,680 Speaker 1: become a center point in this presidential campaign, with both 379 00:19:17,720 --> 00:19:20,639 Speaker 1: sides trying to address sort of the real plight of 380 00:19:20,680 --> 00:19:21,640 Speaker 1: people trying to buy house. 381 00:19:21,840 --> 00:19:24,119 Speaker 8: What's the problem, Well, I think that if you look 382 00:19:24,160 --> 00:19:27,359 Speaker 8: at what went wrong with capitalism, the single biggest issue 383 00:19:27,359 --> 00:19:29,960 Speaker 8: for me is the fact that the average American can't 384 00:19:30,000 --> 00:19:32,280 Speaker 8: afford to buy a home, and so you have this 385 00:19:32,359 --> 00:19:35,840 Speaker 8: flight today where more than half of the twenty year 386 00:19:35,840 --> 00:19:39,160 Speaker 8: olds in our country are living in with their parents 387 00:19:39,359 --> 00:19:41,360 Speaker 8: because it's too hard for them to go out and 388 00:19:41,800 --> 00:19:45,359 Speaker 8: buy their own home. We've had this incredible appreciation in 389 00:19:45,440 --> 00:19:49,240 Speaker 8: home prices that's happened over the last few decades. In fact, 390 00:19:49,240 --> 00:19:52,920 Speaker 8: home prices in real terms in America are up more 391 00:19:52,960 --> 00:19:55,800 Speaker 8: than any other developed country that I really know off 392 00:19:55,800 --> 00:20:01,760 Speaker 8: of significance. And it's the home prices have tripled while 393 00:20:02,480 --> 00:20:04,919 Speaker 8: this century, while incomes have only doubled. 394 00:20:04,960 --> 00:20:06,120 Speaker 1: So you have a real. 395 00:20:05,920 --> 00:20:08,480 Speaker 8: Sort of affordability issue out here. 396 00:20:08,600 --> 00:20:09,640 Speaker 6: Why has this happened? 397 00:20:09,680 --> 00:20:10,360 Speaker 1: And this is what the. 398 00:20:10,320 --> 00:20:13,199 Speaker 8: Column tries to address, that we have people sort of 399 00:20:13,200 --> 00:20:17,240 Speaker 8: offering all these solutions about rent controls, price controls. The 400 00:20:17,320 --> 00:20:19,720 Speaker 8: real problem with the housing market is the fact that 401 00:20:19,760 --> 00:20:23,639 Speaker 8: there's a massive supply shortage. By some measures, the number 402 00:20:23,680 --> 00:20:26,760 Speaker 8: of new homes being created in America today is the 403 00:20:26,840 --> 00:20:29,919 Speaker 8: same as it was in the nineteen fifties. That's like 404 00:20:29,960 --> 00:20:32,359 Speaker 8: such a big discond of the population in nearly doubles 405 00:20:32,400 --> 00:20:35,399 Speaker 8: since then, but we're still creating the same number of homes. 406 00:20:35,440 --> 00:20:38,000 Speaker 8: And after two thousand and eight financial crisis, it's been 407 00:20:38,000 --> 00:20:39,200 Speaker 8: even more acute. 408 00:20:39,240 --> 00:20:40,840 Speaker 1: How much of it was the two thousand and eight 409 00:20:40,840 --> 00:20:42,919 Speaker 1: financial crisis, because it strikes me there's probably a hangover 410 00:20:42,960 --> 00:20:45,320 Speaker 1: from that to some extent. It damaged the housing work. 411 00:20:45,359 --> 00:20:47,440 Speaker 1: It's so much a lot of people really didn't want 412 00:20:47,440 --> 00:20:48,640 Speaker 1: to invest in building houses. 413 00:20:48,880 --> 00:20:51,240 Speaker 8: Yeah, I think that there's a bit of that, but 414 00:20:51,320 --> 00:20:54,480 Speaker 8: this has been this even predates that. So the supply 415 00:20:54,600 --> 00:20:56,440 Speaker 8: is where the rail issue is, which that they said 416 00:20:56,480 --> 00:20:59,399 Speaker 8: that if you look at the supply curve, we just 417 00:20:59,440 --> 00:21:01,879 Speaker 8: haven't been link enough homes for a very long period 418 00:21:01,880 --> 00:21:06,120 Speaker 8: of time for a whole bunch of reasons. A lot 419 00:21:06,119 --> 00:21:08,399 Speaker 8: of this has to do with the government regulatory state, 420 00:21:08,760 --> 00:21:13,399 Speaker 8: which is that it's very difficult to build here today, 421 00:21:13,560 --> 00:21:16,760 Speaker 8: get the permits, deal with all the zoning laws, the 422 00:21:16,800 --> 00:21:21,240 Speaker 8: coding laws. So the problem with America today is that 423 00:21:21,320 --> 00:21:25,040 Speaker 8: the zoning laws we have are go back to a 424 00:21:25,119 --> 00:21:27,520 Speaker 8: vision of American back in the nineteen fifties or so. 425 00:21:27,680 --> 00:21:31,359 Speaker 8: We're on large laws who had single family homes, whereas 426 00:21:31,440 --> 00:21:34,520 Speaker 8: that's changed today. But the laws having changed, And then 427 00:21:34,560 --> 00:21:37,000 Speaker 8: of course you have some cultural issues too. The whole 428 00:21:37,040 --> 00:21:39,640 Speaker 8: issue of nimbism, which has become so popular. 429 00:21:40,240 --> 00:21:41,280 Speaker 1: Here in my backyard. 430 00:21:41,359 --> 00:21:44,080 Speaker 8: Yeah, not in my own backyard, is the thing that 431 00:21:44,119 --> 00:21:46,639 Speaker 8: you don't want anybody else. So you say, yeah, yeah, 432 00:21:46,640 --> 00:21:49,439 Speaker 8: it's an issue like we need to address, but not 433 00:21:49,480 --> 00:21:52,720 Speaker 8: in our own backyard. We don't want more homes out there. 434 00:21:52,760 --> 00:21:55,359 Speaker 8: So I think that this is a very serious issue. 435 00:21:55,760 --> 00:21:58,400 Speaker 8: And in fact, i'm I know you mentioned just now 436 00:21:58,440 --> 00:22:00,080 Speaker 8: that it's become a bigger issue in the campaign, and 437 00:22:00,119 --> 00:22:03,840 Speaker 8: I'm surprised it's not an even bigger issue. But still 438 00:22:04,000 --> 00:22:07,720 Speaker 8: in the debate this week between Kamala Harris and Trump, 439 00:22:07,920 --> 00:22:11,000 Speaker 8: at least Kamala Harris led with that, which was impressive. 440 00:22:11,400 --> 00:22:13,399 Speaker 8: But the real irony here it is that Trump is 441 00:22:13,400 --> 00:22:16,080 Speaker 8: the builder, and given the fact that he's a builder, 442 00:22:16,119 --> 00:22:17,919 Speaker 8: I thought he would make a much bigger issue with 443 00:22:18,000 --> 00:22:21,520 Speaker 8: this or do something about it, because he both campaigns 444 00:22:21,560 --> 00:22:24,920 Speaker 8: on being the deregulator as the King of deregulation, and 445 00:22:24,960 --> 00:22:27,280 Speaker 8: he should understand the housing markets. So I'm just a 446 00:22:27,320 --> 00:22:30,159 Speaker 8: bit mystified why it's not an even bigger issue with 447 00:22:30,200 --> 00:22:31,480 Speaker 8: the Trump campaign. 448 00:22:31,119 --> 00:22:35,359 Speaker 1: So focusing on the regulation, because presumably these regulations, including 449 00:22:35,400 --> 00:22:38,440 Speaker 1: particularly zoning, are not evenly distributed across the country. Does 450 00:22:38,440 --> 00:22:42,080 Speaker 1: that mean that the unaffordability is not evenly distributed across 451 00:22:42,080 --> 00:22:42,479 Speaker 1: the country. 452 00:22:42,560 --> 00:22:45,040 Speaker 8: Yeah, so, I'd say that the big cities in America 453 00:22:45,080 --> 00:22:48,240 Speaker 8: in particular have much more zoning coding laws, And of 454 00:22:48,240 --> 00:22:50,040 Speaker 8: course you have places like New York and San Francisco 455 00:22:50,119 --> 00:22:52,960 Speaker 8: dealing with the rent controls, which further distort the market. 456 00:22:53,040 --> 00:22:56,600 Speaker 8: So these markets have been suffering from an affordability issue 457 00:22:56,600 --> 00:22:59,080 Speaker 8: for a long period of time. But the dramatic change 458 00:22:59,080 --> 00:23:04,920 Speaker 8: that's happened is this decade. Now pretty much all of America, 459 00:23:05,080 --> 00:23:08,240 Speaker 8: many cities across America, not just the large ones, housing 460 00:23:08,280 --> 00:23:10,480 Speaker 8: has become unaffordable. If you look at it from a 461 00:23:10,560 --> 00:23:14,280 Speaker 8: very basic measure that economists would say that if you 462 00:23:14,359 --> 00:23:17,040 Speaker 8: spend more than thirty percent of your income on housing, 463 00:23:17,520 --> 00:23:21,440 Speaker 8: that means that you're stretched. Now practically everyone is being 464 00:23:21,480 --> 00:23:24,159 Speaker 8: forced to spend more than thirty percent of their income 465 00:23:24,160 --> 00:23:25,760 Speaker 8: on housing if they want to buy a new home, 466 00:23:25,800 --> 00:23:28,960 Speaker 8: because it's just so difficult to afford a home given 467 00:23:29,080 --> 00:23:33,080 Speaker 8: the massive escalation we've seen in prices, and also, of 468 00:23:33,119 --> 00:23:35,800 Speaker 8: course it doesn't help that interest rates are on the 469 00:23:35,880 --> 00:23:38,240 Speaker 8: higher side but I'd say the bigger issue is the 470 00:23:38,280 --> 00:23:41,960 Speaker 8: massive price appreciation that's taking place in America because of 471 00:23:42,040 --> 00:23:44,680 Speaker 8: a big shortage on the supply side over the last 472 00:23:44,680 --> 00:23:45,720 Speaker 8: few decades, which has. 473 00:23:45,640 --> 00:23:47,960 Speaker 1: Led to inflation. We're all focused on inflation and therefore 474 00:23:48,200 --> 00:23:51,280 Speaker 1: real wages, a real income. What's the relationship between the 475 00:23:51,320 --> 00:23:55,080 Speaker 1: growth and real income over time and the cost of housing? 476 00:23:55,320 --> 00:23:56,800 Speaker 8: As I said that if you look at it that 477 00:23:56,960 --> 00:24:01,160 Speaker 8: over the last few decades, this same jury, in fact, 478 00:24:01,280 --> 00:24:05,280 Speaker 8: the cost of housing has been increasing at a far 479 00:24:05,440 --> 00:24:09,720 Speaker 8: greater rate than either inflation or rail wages, so therefore 480 00:24:10,080 --> 00:24:14,480 Speaker 8: made the affordability become very difficult in this country. So 481 00:24:14,560 --> 00:24:16,600 Speaker 8: I think that this is a broader statement here, David 482 00:24:16,640 --> 00:24:19,600 Speaker 8: about the regulatory state that we have in America, which 483 00:24:19,680 --> 00:24:23,240 Speaker 8: is that we have created so many new regulations in 484 00:24:23,320 --> 00:24:26,159 Speaker 8: our as that O line goes that the road to 485 00:24:26,200 --> 00:24:28,560 Speaker 8: hell is paved with good intentions. So the government thinks 486 00:24:28,600 --> 00:24:31,240 Speaker 8: it's doing the right thing, but in terms of it's 487 00:24:31,280 --> 00:24:34,639 Speaker 8: trying to create more and more protection, it thinks, but 488 00:24:34,720 --> 00:24:37,520 Speaker 8: in doing so, it's created this regulatory state which is 489 00:24:37,560 --> 00:24:40,360 Speaker 8: stifling business. So the other related topic here, which also 490 00:24:40,400 --> 00:24:45,240 Speaker 8: I've written about in the past, is that small and 491 00:24:45,359 --> 00:24:50,120 Speaker 8: mid size businesses, their confidence today is very low. 492 00:24:50,160 --> 00:24:51,240 Speaker 1: It's almost back. 493 00:24:51,040 --> 00:24:53,800 Speaker 8: To where it was near the two thousand and eight 494 00:24:54,119 --> 00:24:58,879 Speaker 8: global financial crisis. Whereas the large conglomerates and the large businesses, 495 00:24:58,920 --> 00:25:01,120 Speaker 8: which can deal with the regular state in a more 496 00:25:01,160 --> 00:25:04,480 Speaker 8: efficient way, their confidence is far higher. So we're seeing 497 00:25:04,480 --> 00:25:07,480 Speaker 8: this across the state, and the housing market is obviously 498 00:25:07,480 --> 00:25:10,320 Speaker 8: what it impacts the average consumer the most. 499 00:25:10,160 --> 00:25:11,920 Speaker 1: For sure. Thank you so much. It's always great having 500 00:25:11,960 --> 00:25:17,439 Speaker 1: Weshir Sharma with us from Rockefeller International. Coming up, China 501 00:25:17,560 --> 00:25:20,720 Speaker 1: is struggling to attract foreign investment. We talk with Deborah 502 00:25:20,800 --> 00:25:26,119 Speaker 1: Lair of Baselina about why that's next on Wall Street 503 00:25:26,119 --> 00:25:27,240 Speaker 1: Week on Bloomberg. 504 00:25:28,400 --> 00:25:32,640 Speaker 2: This is Bloomberg Wall Street Week with David Weston from 505 00:25:32,760 --> 00:25:35,400 Speaker 2: Bloomberg Radio. 506 00:25:40,359 --> 00:25:43,359 Speaker 1: This is Wall Street Week. I'm David Weston. China continues 507 00:25:43,400 --> 00:25:46,480 Speaker 1: to fight an uphill battle to attract foreign investment, with 508 00:25:46,560 --> 00:25:49,639 Speaker 1: the European Union Chamber of Commerce in China this week 509 00:25:49,880 --> 00:25:52,400 Speaker 1: issue a paper that says that the risks are really 510 00:25:52,520 --> 00:25:55,840 Speaker 1: starting to outweigh the rewards of investment in China. For 511 00:25:55,880 --> 00:25:58,159 Speaker 1: an update on the state of the Chinese economy and 512 00:25:58,200 --> 00:26:00,760 Speaker 1: where it is headed, we welcome back now Debra Lair. 513 00:26:00,840 --> 00:26:03,439 Speaker 1: She's head of the Baselina. Thanks so much, Betva for 514 00:26:03,440 --> 00:26:05,520 Speaker 1: being back with us, so give us your take. You 515 00:26:05,560 --> 00:26:07,960 Speaker 1: know China so well, what is going on? Great? 516 00:26:08,080 --> 00:26:10,040 Speaker 9: Delighted to be back, David, so good to see you. 517 00:26:10,600 --> 00:26:13,760 Speaker 10: And yes, for it was only in twenty twenty one 518 00:26:13,840 --> 00:26:16,680 Speaker 10: that China actually was number one in the world when 519 00:26:16,720 --> 00:26:19,360 Speaker 10: it came to direct foreign investment, and now we are 520 00:26:19,400 --> 00:26:23,320 Speaker 10: seeing a decline. And this is around a number of factors, 521 00:26:23,880 --> 00:26:29,520 Speaker 10: foremost being confidence in Hi Jinping and his administration's economic 522 00:26:29,560 --> 00:26:35,600 Speaker 10: and financial policies. There's tremendous concern about the ongoing drags 523 00:26:35,640 --> 00:26:41,840 Speaker 10: on the economy around the reduction in consumption, the inability 524 00:26:41,880 --> 00:26:47,360 Speaker 10: to stimulate growth through further government investment given local debt levels, 525 00:26:47,920 --> 00:26:53,719 Speaker 10: the inability to stimulate the economy through massive exports, given 526 00:26:54,080 --> 00:26:56,840 Speaker 10: that many countries now are watching very carefully what China 527 00:26:56,920 --> 00:27:01,080 Speaker 10: is doing with its oversupply, and the real estate continues 528 00:27:01,119 --> 00:27:04,400 Speaker 10: to be a drag on the economy. And that's putting aside, 529 00:27:04,440 --> 00:27:08,439 Speaker 10: of course, all the geopolitical issues that they're facing now, 530 00:27:08,800 --> 00:27:13,159 Speaker 10: as well as the issues around this move that gigmping 531 00:27:13,800 --> 00:27:20,440 Speaker 10: has really engaged on, preferring national security to economic policy. 532 00:27:21,160 --> 00:27:23,680 Speaker 1: Yeah, and particularly making a drive here against some of 533 00:27:23,680 --> 00:27:27,240 Speaker 1: the people who've been most successful and wealthiest, which is 534 00:27:27,680 --> 00:27:30,840 Speaker 1: interjected I think a degree of uncertainty for those people 535 00:27:30,880 --> 00:27:33,720 Speaker 1: who want to really be the Jack Maas of this world. 536 00:27:33,840 --> 00:27:36,359 Speaker 1: It's not such a happy place to be necessarily. 537 00:27:36,240 --> 00:27:36,920 Speaker 6: That's very true. 538 00:27:36,960 --> 00:27:39,199 Speaker 10: I mean you can see it from the statistics that 539 00:27:39,280 --> 00:27:44,239 Speaker 10: actually have just come out about venture capital, where just 540 00:27:44,280 --> 00:27:48,240 Speaker 10: in twenty eighteen there were over fifty thousand startups in 541 00:27:48,359 --> 00:27:52,160 Speaker 10: China and last year it was a little over one thousand, 542 00:27:52,840 --> 00:27:55,240 Speaker 10: and they expect that number to even drop this year. 543 00:27:55,320 --> 00:28:01,480 Speaker 10: There's a concern about investing and the access to capital, 544 00:28:02,040 --> 00:28:05,480 Speaker 10: but also it's just the overall drag on the economy 545 00:28:05,600 --> 00:28:10,320 Speaker 10: and these concerns about the continued insertion of party values 546 00:28:10,680 --> 00:28:12,800 Speaker 10: into innovation in the private sector. 547 00:28:13,320 --> 00:28:15,960 Speaker 1: Is there any indication the presidence she might back off 548 00:28:15,960 --> 00:28:19,480 Speaker 1: of that that's really been very central in recent years 549 00:28:19,520 --> 00:28:22,200 Speaker 1: to his policy. Is there any chance they might actually 550 00:28:22,640 --> 00:28:24,159 Speaker 1: tack a little bit away from that direction. 551 00:28:24,960 --> 00:28:27,399 Speaker 10: Well, that's really the billion dollar question, isn't it. In 552 00:28:27,480 --> 00:28:31,520 Speaker 10: terms of where we see China's economic future. We have 553 00:28:31,680 --> 00:28:36,280 Speaker 10: not seen shebacking away from this emphasis on national security. 554 00:28:36,760 --> 00:28:38,960 Speaker 10: There are all kinds of examples that we can cite 555 00:28:39,360 --> 00:28:40,120 Speaker 10: related to that. 556 00:28:40,640 --> 00:28:42,200 Speaker 9: What we have seen is they've been on. 557 00:28:42,160 --> 00:28:45,840 Speaker 10: A real term campaign with international business. They've been sending 558 00:28:45,880 --> 00:28:48,800 Speaker 10: delegations over here. They've been meeting with a number of 559 00:28:49,240 --> 00:28:52,960 Speaker 10: Western companies to encourage them to continue to grow. They've 560 00:28:53,000 --> 00:28:57,760 Speaker 10: been engaging in some market opening and reform to welcome 561 00:28:57,800 --> 00:28:59,840 Speaker 10: the foreign firms and make it easier for them to 562 00:28:59,840 --> 00:29:03,680 Speaker 10: do business. But the overall atmosphere continues to be one 563 00:29:03,680 --> 00:29:07,600 Speaker 10: of concern, first, of course, because of where the economy 564 00:29:07,680 --> 00:29:11,160 Speaker 10: is going, but to these concerns that American companies and 565 00:29:11,240 --> 00:29:15,080 Speaker 10: European companies have about the focus on national security. 566 00:29:15,480 --> 00:29:17,560 Speaker 1: There's a host of factors of peers going into this. 567 00:29:17,640 --> 00:29:20,400 Speaker 1: But how important are the trade issues both of the 568 00:29:20,720 --> 00:29:23,400 Speaker 1: European Union and the United States, because there are real 569 00:29:23,440 --> 00:29:25,400 Speaker 1: issues here. And by the way, going back to what 570 00:29:25,400 --> 00:29:27,960 Speaker 1: you were saying about national security, to a large degree, 571 00:29:28,000 --> 00:29:29,880 Speaker 1: the Bide adminstration has made it sort of a national 572 00:29:29,880 --> 00:29:31,080 Speaker 1: security issue. 573 00:29:31,360 --> 00:29:31,920 Speaker 9: Absolutely. 574 00:29:32,120 --> 00:29:34,760 Speaker 10: I mean, we saw this begin under President Trump and 575 00:29:34,880 --> 00:29:39,200 Speaker 10: definitely be continued with President Biden, and whoever wins in November, 576 00:29:39,240 --> 00:29:42,840 Speaker 10: I'm sure will continue this trend where trade is no 577 00:29:42,920 --> 00:29:46,560 Speaker 10: longer looked at as a way of opening markets and 578 00:29:46,680 --> 00:29:51,040 Speaker 10: promoting reform. But in many ways it's a tool to 579 00:29:51,080 --> 00:29:55,040 Speaker 10: influence policy, and so we see it as a negative 580 00:29:55,080 --> 00:30:00,480 Speaker 10: tool to influence policy. And as China can continues to 581 00:30:00,560 --> 00:30:03,120 Speaker 10: grow and try and grow in areas where the United 582 00:30:03,120 --> 00:30:05,880 Speaker 10: States or the Europeans might have concern, whether it's in 583 00:30:05,920 --> 00:30:11,400 Speaker 10: climate technologies or if it's in artificial intelligence, we in 584 00:30:11,440 --> 00:30:14,480 Speaker 10: the West have been much more sophisticated in how we've 585 00:30:14,600 --> 00:30:17,800 Speaker 10: used our trade tools to close our markets and attempt 586 00:30:17,840 --> 00:30:21,080 Speaker 10: to slow China's growth in those areas. So I see 587 00:30:21,080 --> 00:30:24,880 Speaker 10: this definitely as an ongoing issue, and it not only 588 00:30:24,920 --> 00:30:28,520 Speaker 10: affects it substantively, but obviously it affects the whole atmosphere 589 00:30:29,080 --> 00:30:33,040 Speaker 10: for companies willing to do business in China. There are many, 590 00:30:33,080 --> 00:30:36,200 Speaker 10: many sectors and many many opportunities. Still you'll hear the 591 00:30:36,200 --> 00:30:39,160 Speaker 10: Secretary of Commerce talk about the fact that the overwhelming 592 00:30:39,240 --> 00:30:42,560 Speaker 10: majority of our trade with China is benign and we 593 00:30:42,560 --> 00:30:46,440 Speaker 10: should continue to still engage with China. But the willingness 594 00:30:46,440 --> 00:30:49,920 Speaker 10: of many of these companies who hear what's happening in 595 00:30:49,960 --> 00:30:53,720 Speaker 10: the market are concerned about the future of the overall 596 00:30:53,760 --> 00:30:55,800 Speaker 10: relationship and at what it means for them to be 597 00:30:55,840 --> 00:30:59,680 Speaker 10: able to do business in China has become a real 598 00:30:59,720 --> 00:31:03,600 Speaker 10: way on their willingness to start to export or invest 599 00:31:03,600 --> 00:31:04,320 Speaker 10: in China. 600 00:31:04,440 --> 00:31:07,160 Speaker 1: Here in the United States right now, we're all fashioned 601 00:31:07,240 --> 00:31:10,160 Speaker 1: on the presidential election, and as part of that coverage, 602 00:31:10,160 --> 00:31:11,800 Speaker 1: we spend a lot of time talking without the team 603 00:31:11,920 --> 00:31:14,360 Speaker 1: around a Vice President Harris, if she were elected to 604 00:31:14,440 --> 00:31:18,080 Speaker 1: the team around Donald Trump, what's the team around President 605 00:31:18,120 --> 00:31:19,880 Speaker 1: She when it comes to economic policy. 606 00:31:20,400 --> 00:31:24,400 Speaker 10: Yeah, that is actually a really good question. President She 607 00:31:24,560 --> 00:31:29,480 Speaker 10: has brought many of his longtime loyal allies with him 608 00:31:29,600 --> 00:31:33,920 Speaker 10: into the most senior positions, and many of them come 609 00:31:34,040 --> 00:31:38,480 Speaker 10: from great expertise in provincial background, but are not as 610 00:31:38,520 --> 00:31:43,040 Speaker 10: strong as previous administrations have been on international experience. If 611 00:31:43,040 --> 00:31:45,720 Speaker 10: we even look at in the financial sector, the two 612 00:31:45,840 --> 00:31:49,880 Speaker 10: people who lead the financial sector and the financial regulatory body, 613 00:31:50,240 --> 00:31:54,480 Speaker 10: the Premier League Chung and the Vice Premier Khalifung, have 614 00:31:54,920 --> 00:32:00,600 Speaker 10: no financial experience, certainly not internationally. And the top regulator, 615 00:32:00,680 --> 00:32:05,480 Speaker 10: the head of the People's Bank, is actually not even 616 00:32:05,600 --> 00:32:09,040 Speaker 10: on the financial regulatory body. And we've seen sort of 617 00:32:09,040 --> 00:32:14,240 Speaker 10: a systematic sweep against moving out many of those experts 618 00:32:14,240 --> 00:32:18,040 Speaker 10: in the financial sector who were educated in the West, 619 00:32:18,400 --> 00:32:21,840 Speaker 10: who actually have been part of China's integration into the 620 00:32:21,880 --> 00:32:27,680 Speaker 10: international financial community. Being moved out and provincial financial leaders 621 00:32:27,760 --> 00:32:30,840 Speaker 10: being moved up and into office. Maybe that's a reflection 622 00:32:30,920 --> 00:32:33,440 Speaker 10: of where China seeds it's concerned. Obviously with all this 623 00:32:33,520 --> 00:32:36,280 Speaker 10: local debt, it continues to be a big concern for 624 00:32:36,320 --> 00:32:38,680 Speaker 10: the government and a drag on the economy. 625 00:32:38,520 --> 00:32:40,640 Speaker 9: But it is a bigger concern as. 626 00:32:40,520 --> 00:32:44,120 Speaker 10: We look internationally in China's continuing important role in the 627 00:32:44,120 --> 00:32:46,320 Speaker 10: international financial community. 628 00:32:45,960 --> 00:32:47,920 Speaker 1: And that's in the public sector. There are reports in 629 00:32:47,920 --> 00:32:50,760 Speaker 1: Bloomberg this week that there have been actions taken by 630 00:32:50,760 --> 00:32:55,000 Speaker 1: the government against some leading investment bankers actually over in China, 631 00:32:55,040 --> 00:32:57,400 Speaker 1: where they're being detained or their passport's being taken whatever. 632 00:32:58,360 --> 00:33:01,840 Speaker 1: What is the chilling effect here on the professional bankers 633 00:33:01,880 --> 00:33:03,520 Speaker 1: as it were in China? 634 00:33:03,600 --> 00:33:08,080 Speaker 10: And China's engaged in several anti corruption campaigns and several 635 00:33:08,080 --> 00:33:11,160 Speaker 10: waves of anti corruption campaigns, both in the financial sector 636 00:33:11,280 --> 00:33:14,440 Speaker 10: and others, and it has been a concern. We see 637 00:33:14,480 --> 00:33:18,360 Speaker 10: it in the financial sector in current terms of even 638 00:33:18,760 --> 00:33:23,400 Speaker 10: for Western companies executives who are willing to relocate to China, 639 00:33:23,560 --> 00:33:26,840 Speaker 10: you're not getting necessarily the best and brightest. In the past, 640 00:33:26,960 --> 00:33:30,120 Speaker 10: it was often a path to promotion. Now it's being 641 00:33:30,200 --> 00:33:33,280 Speaker 10: viewed as China for China, and China is an island 642 00:33:33,720 --> 00:33:34,840 Speaker 10: that's unto itself. 643 00:33:35,160 --> 00:33:37,880 Speaker 9: In the financial infrastructure. 644 00:33:36,920 --> 00:33:39,960 Speaker 10: Of many of these investment banks, it's been a chilling 645 00:33:39,960 --> 00:33:42,800 Speaker 10: effect on the venture capital I already cited some of 646 00:33:42,800 --> 00:33:47,600 Speaker 10: the statistics, but we see many of these vcs moving 647 00:33:47,640 --> 00:33:52,240 Speaker 10: offshore or looking for investment overseas. So it does have 648 00:33:52,280 --> 00:33:55,200 Speaker 10: a significant effect. And particularly if they're going and they're 649 00:33:55,200 --> 00:33:59,800 Speaker 10: going to arrest or detain local entrepreneurs, it just further 650 00:34:00,080 --> 00:34:03,960 Speaker 10: adds to that concern of the willingness to go into 651 00:34:04,000 --> 00:34:06,640 Speaker 10: the private sector and start your own companies. 652 00:34:07,120 --> 00:34:09,000 Speaker 1: Okay, Dere, it's always such a pleasure having with us. 653 00:34:09,000 --> 00:34:11,759 Speaker 1: Thank you so much. That's Devrelaiir of the Besselina Group. 654 00:34:13,200 --> 00:34:16,440 Speaker 1: This one is about Wall Street Week itself. It's a 655 00:34:16,480 --> 00:34:19,520 Speaker 1: program that goes back over fifty years to the days 656 00:34:19,520 --> 00:34:22,760 Speaker 1: of Lewis Rockeiser on PBS. 657 00:34:23,280 --> 00:34:25,880 Speaker 3: Good Evening. I'm Lewis Rucheiser. This is a Wall Street 658 00:34:25,880 --> 00:34:26,879 Speaker 3: Week welcome back. 659 00:34:27,160 --> 00:34:29,160 Speaker 11: This was the week when the stock market stage what 660 00:34:29,239 --> 00:34:32,920 Speaker 11: it euphemistically calls a correction a country's trade balance, which 661 00:34:32,960 --> 00:34:35,400 Speaker 11: have been delivering its own brand of bad news for 662 00:34:35,480 --> 00:34:38,640 Speaker 11: many a month. Some assaulted in February and recorded the 663 00:34:38,680 --> 00:34:41,720 Speaker 11: biggest one month surplus in American history. 664 00:34:42,120 --> 00:34:45,239 Speaker 1: As of next week, we enter a new generation. We'll 665 00:34:45,239 --> 00:34:48,080 Speaker 1: get out of the studio and travel around the world 666 00:34:48,120 --> 00:34:51,600 Speaker 1: to bring you stories of capitalism, from Chinese funded industrial 667 00:34:51,640 --> 00:34:54,400 Speaker 1: parks in Mexico to the halls of academia in the 668 00:34:54,520 --> 00:34:57,839 Speaker 1: United States and the United Kingdom. Starting with Gillian Tett 669 00:34:58,080 --> 00:35:01,800 Speaker 1: in her new role as head of King's College, Cambridge. 670 00:35:02,920 --> 00:35:04,520 Speaker 6: Public money is drying. 671 00:35:04,280 --> 00:35:07,760 Speaker 1: Up, the story of higher education, challenged on both sides 672 00:35:07,760 --> 00:35:09,879 Speaker 1: of the Atlantic by a business model that can get 673 00:35:09,920 --> 00:35:12,560 Speaker 1: in the way of teaching the workforce of the future. 674 00:35:12,760 --> 00:35:16,279 Speaker 4: Teaching kids is not just a business in the sense 675 00:35:16,320 --> 00:35:18,720 Speaker 4: of having a profit and lost balance sheet. 676 00:35:19,040 --> 00:35:20,800 Speaker 9: It's above all else, it's a mission. 677 00:35:20,880 --> 00:35:23,640 Speaker 7: The hardest business to change is one that's succeeded for 678 00:35:23,680 --> 00:35:24,279 Speaker 7: a long time. 679 00:35:24,800 --> 00:35:28,680 Speaker 1: Welcome to the New Wall Street Week, telling the investors' stories. 680 00:35:29,000 --> 00:35:32,799 Speaker 1: Stories from business, markets, economics, tech and climate, like how 681 00:35:32,840 --> 00:35:36,040 Speaker 1: a derelict building became a symbol for restoring pride. 682 00:35:36,360 --> 00:35:38,840 Speaker 12: The train station felt like the right kind of challenger 683 00:35:38,920 --> 00:35:41,600 Speaker 12: project for four to be part of, so that we 684 00:35:41,680 --> 00:35:45,680 Speaker 12: could be part of the revitalization of destroyed and this 685 00:35:45,840 --> 00:35:49,359 Speaker 12: felt like the kind of project that would be emblematic 686 00:35:49,400 --> 00:35:51,080 Speaker 12: of our recovery as a company. 687 00:35:51,880 --> 00:35:54,440 Speaker 1: We'll bring you the story of how one lender used 688 00:35:54,480 --> 00:35:58,000 Speaker 1: prudent investing along with its position in between the megabanks 689 00:35:58,000 --> 00:36:00,280 Speaker 1: and the community banks, to help build a law local, 690 00:36:00,440 --> 00:36:04,040 Speaker 1: family owned company into a billion dollar, world class business. 691 00:36:04,239 --> 00:36:06,279 Speaker 1: How long have you been banking with PNC. 692 00:36:06,239 --> 00:36:09,720 Speaker 7: Since the beginning? Our first meeting with PNC he occurred 693 00:36:09,760 --> 00:36:13,640 Speaker 7: in my parents' basement when we were just starting our company. 694 00:36:13,800 --> 00:36:16,960 Speaker 7: And you know, it was over a couple of foldout tables, 695 00:36:17,040 --> 00:36:20,319 Speaker 7: and the relationships started there and it's done nothing but 696 00:36:20,440 --> 00:36:21,960 Speaker 7: grow immensely. 697 00:36:21,440 --> 00:36:22,120 Speaker 8: Over the years. 698 00:36:24,320 --> 00:36:25,280 Speaker 6: Food is inclusive. 699 00:36:25,800 --> 00:36:27,560 Speaker 13: Food doesn't really discriminate. 700 00:36:28,080 --> 00:36:30,400 Speaker 1: Melibelle Wilson helps us tell the story of the New 701 00:36:30,480 --> 00:36:34,720 Speaker 1: York restaurant business. It takes good food, good people, good economics, 702 00:36:34,760 --> 00:36:37,920 Speaker 1: and like any recipe, it only works when it all 703 00:36:37,960 --> 00:36:39,440 Speaker 1: comes together, using. 704 00:36:39,160 --> 00:36:42,360 Speaker 13: Food as a conduit to bring people together, but also 705 00:36:42,520 --> 00:36:45,719 Speaker 13: to show people that come from the Harlems of the 706 00:36:45,760 --> 00:36:49,920 Speaker 13: world that we can invest in our community and we 707 00:36:50,400 --> 00:36:52,239 Speaker 13: can be the change that we want to see. 708 00:36:52,400 --> 00:36:56,600 Speaker 1: And what could be the story of the century Artificial intelligence. 709 00:36:57,000 --> 00:36:59,200 Speaker 1: Wall Street Week takes you behind the scenes of a 710 00:36:59,320 --> 00:37:01,839 Speaker 1: data center in Texas to tell the tale of an 711 00:37:01,840 --> 00:37:04,720 Speaker 1: insatiable demand and how it can be met. 712 00:37:05,160 --> 00:37:08,440 Speaker 14: When you see the world's leading technology companies who are 713 00:37:08,440 --> 00:37:11,319 Speaker 14: as close to this as anybody making the scale of 714 00:37:11,360 --> 00:37:15,280 Speaker 14: investments that they are, to me, that's an extraordinary sign 715 00:37:15,440 --> 00:37:17,560 Speaker 14: of the potential that they see in the future. 716 00:37:18,880 --> 00:37:21,960 Speaker 1: Our pets are a story in themselves, but the companionship 717 00:37:22,000 --> 00:37:24,200 Speaker 1: we crave from them turned into the story of a 718 00:37:24,239 --> 00:37:27,279 Speaker 1: healthcare industry amounting to tens of billions of dollars a 719 00:37:27,360 --> 00:37:31,040 Speaker 1: year and innovating fast. What if there's a twenty percent 720 00:37:31,080 --> 00:37:33,840 Speaker 1: production in your take home income? Would you change what 721 00:37:33,880 --> 00:37:35,399 Speaker 1: you spend for your pet when it's sick? 722 00:37:35,600 --> 00:37:36,799 Speaker 9: And they wouldn't change it a dime. 723 00:37:37,400 --> 00:37:38,640 Speaker 6: It's a member of your family. 724 00:37:39,160 --> 00:37:41,640 Speaker 1: In coming episodes of The New Wall Street Week, we'll 725 00:37:41,680 --> 00:37:45,080 Speaker 1: go to Silicon Savannah in Nairobi, where the United States 726 00:37:45,080 --> 00:37:47,720 Speaker 1: and China are waging a war over the future of AI, 727 00:37:48,600 --> 00:37:51,160 Speaker 1: and to Mexico, where near shoring is supposed to be 728 00:37:51,239 --> 00:37:54,160 Speaker 1: cooling the appetite for Chinese goods. We'll tell the story 729 00:37:54,200 --> 00:37:57,080 Speaker 1: of San Francisco and what it's struggle with crime means 730 00:37:57,080 --> 00:37:59,600 Speaker 1: for business We'll check you in out a World Bank 731 00:37:59,600 --> 00:38:03,000 Speaker 1: development project to see what effect those extra special drawing 732 00:38:03,080 --> 00:38:05,520 Speaker 1: rights have had, and go behind the scenes of the 733 00:38:05,640 --> 00:38:11,200 Speaker 1: art world, the passion asset for many on Global Wall Street. 734 00:38:11,239 --> 00:38:14,040 Speaker 1: All that and more on the next generation of Wall 735 00:38:14,040 --> 00:38:16,600 Speaker 1: Street Week. More than what you need to know, it's 736 00:38:16,640 --> 00:38:17,800 Speaker 1: what you need to think about.