WEBVTT - Single Best Idea with Tom Keene: Robert Kaplan & Ed Yardeni

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>A single best idea on a huge day for technology.

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<v Speaker 2>Thank you Caroline Hyde for coming in with Bloomberg Technology

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<v Speaker 2>and providing wisdom on this open AI Microsoft thing. I

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<v Speaker 2>don't pretend to get it, but it's really like it's

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<v Speaker 2>almost like a sea change day for AI. We saw

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<v Speaker 2>that with a Microsoft lift, Apple going above for trillion

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<v Speaker 2>as well in marketcap, but really really interesting that sort

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<v Speaker 2>of overwhelmed the newsflow through the day. Robert Kaplan with us,

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<v Speaker 2>a former president of the Dallas Fatties, back at GOLDBN

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<v Speaker 2>Sachs as vice chairman. Robert Kaplan, of course, on tomorrow's meeting, I.

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<v Speaker 3>Don't know they're going to be surprises. They're going to

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<v Speaker 3>cut tomorrow, they're going to announce. I would guess they're

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<v Speaker 3>going to end quantitative tightening. Those aren't surprises. I think

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<v Speaker 3>the only possible surprise is I think J Powell, I believe,

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<v Speaker 3>should leave the door open to cutting in December. The

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<v Speaker 3>markets are pricing into they're going to cut in December,

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<v Speaker 3>but he's going to want to leave some optionality just

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<v Speaker 3>in case they're getting closer to neutral. Inflation is still

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<v Speaker 3>running seventy five hundred basis points above target, so it

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<v Speaker 3>might be taken some as a little bit more independent,

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<v Speaker 3>wanting optionality, although I don't think they should be surprised

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<v Speaker 3>by that.

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<v Speaker 2>Robert Capln, the former president of a Dallas Fed, we

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<v Speaker 2>had a brilliant, extended discussion about what we're going to

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<v Speaker 2>do with the people left behind by AI. It was

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<v Speaker 2>truly one of our conversations of the year. Our conversation

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<v Speaker 2>in the last three years with Edward yard Denny has

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<v Speaker 2>been simple. When everyone was gloomy. Yard Denny said, corporations

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<v Speaker 2>will adapt, they will adjust, and he looked for higher

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<v Speaker 2>prices in shares of American companies. He nailed this bullmarket

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<v Speaker 2>and your Denny of your Denny research, the bull market continues.

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<v Speaker 1>I think the bullmarket continues here. We've still got some

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<v Speaker 1>good news ahead. Some of it's been discounted, of course,

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<v Speaker 1>but the Fed is expected to lower the Fed funds

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<v Speaker 1>rate two more times this year, so that would get

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<v Speaker 1>us down to three point five percent. By the way,

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<v Speaker 1>I don't think the economy really needs it, so a

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<v Speaker 1>lot of this stimulus is probably going to feed the bullmarket.

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<v Speaker 1>And I'm looking for the S and P five hundred

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<v Speaker 1>to get to seven thousand by the end of the

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<v Speaker 1>year or by the end of the week. I mean

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<v Speaker 1>things are moving pretty quickly here, and then seventy seven

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<v Speaker 1>hundred by the end of next year.

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<v Speaker 2>Your Denny there, of your Denny research, and please to

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<v Speaker 2>inform you that Max, the dog who sleeps on the

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<v Speaker 2>couch behind Ed, never woke up throughout the entire interview.

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<v Speaker 2>We hope you're awake, of course. On a podcast, it's

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<v Speaker 2>on an Apple and Spotify and a YouTube podcasts a

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<v Speaker 2>single best idea