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Speaker 2: We're gonna look.
Speaker 3: Here right now with Stephen Stanley at the American economy.
Speaker 3: Stephen Stanley's just fabulous. It taken Fisherian macroeconomics and bringing
Speaker 3: it down to where we are right now.
Speaker 2: There's been an underestimation of GDP.
Speaker 3: Is a productivity miracle still in place? You know.
Speaker 4: I think that there's been a lot of talk about
Speaker 4: a big acceleration productivity, and of course AI is a
Speaker 4: big part of that conversation, and I think we might
Speaker 4: get there, but I don't think we're there yet. It
Speaker 4: takes a long time for these sorts of revolutions to
Speaker 4: kind of take hold in the economy. You think back
Speaker 4: to the nineties and how long it was after the
Speaker 4: NASDAC began to shoot up until the productivity numbers actually
Speaker 4: showed it. So I think at the moment productivity is
Speaker 4: okay but not great. And you know, the question is
Speaker 4: when and by how much might it accelerate going forward?
Speaker 3: The split between hard and soft data. Michael McKee's completely
Speaker 3: focused on this right now. One shows oomph, the other not.
Speaker 3: Which is right.
Speaker 4: Well, I think at this point generally I'm a big
Speaker 4: believer in the hard data, and for example, I think
Speaker 4: that the correlation between consumer confidence and consumer spending is
Speaker 4: pretty weak over time. But when things are moving fast,
Speaker 4: sometimes the soft data is telling you something and in
Speaker 4: a more timely manner than the hard data. And I
Speaker 4: think right now we're just waiting for the hammer to
Speaker 4: drop from the impact of tariffs, and you can see
Speaker 4: that in the soft data. You haven't seen it yet
Speaker 4: in the hard data. I'm very interested to see what
Speaker 4: the May data look like, because I have to say
Speaker 4: I was surprised at how little, really, almost not at all,
Speaker 4: the April hard data was affected by tariffs. We had,
Speaker 4: you know, the employment number was good, retail sales was fine,
Speaker 4: the CPI was normal. So I am expecting to see
Speaker 4: some of that washed through in the May data.
Speaker 5: Are you concerned about inflation, are you concerned about slowing
Speaker 5: economic growth associated with the tariffs, or are they just
Speaker 5: so I don't know, I mean, they're out there, and
Speaker 5: there are some real tariffs on real goods and services.
Speaker 5: How do you expect that the blow through?
Speaker 4: Well, my hope is that on both counts, both of
Speaker 4: inflation and for growth, that the impact will be mostly temporary.
Speaker 4: We'll see, I mean, obviously all of this remains to
Speaker 4: be seen at this point, but certainly, I think for
Speaker 4: the FED, the key question is, I think on the
Speaker 4: inflation side, really focused on how long the inflation impetus lasts.
Speaker 5: So what's our federal reserve to do, if anything, as
Speaker 5: a result of some of this uncertainty.
Speaker 4: Well, right now I think they're you know, as they've said,
Speaker 4: they're being patient, they're in wait and see mode. I
Speaker 4: think they feel like they're in relatively good position coming
Speaker 4: into the But you know, before any of the tariff
Speaker 4: stuff began, the idea was, Okay, we're modestly restrictive, and
Speaker 4: that's where we want to be because inflation is above
Speaker 4: our target. We need to see more progress on inflation.
Speaker 4: That all that whole narrative was interrupted by the tariff situation,
Speaker 4: and now you know, we'll we'll see how long that
Speaker 4: inflation data continues to run high.
Speaker 2: This is what surveillance is about.
Speaker 3: We got Blanchard coming on on Stanley Fisher with all
Speaker 3: that excellence of academic theory and thinking about where we're going.
Speaker 2: You are a definitive.
Speaker 3: Acclaim market economist out of Washington and Lee. Do the
Speaker 3: models that Blenchard and Fisher invented, codified and move forward?
Speaker 3: Are they working today? Or is the FED and others?
Speaker 3: Are we just making it up as we go?
Speaker 2: Well?
Speaker 4: I think that, you know, certainly the models provide a
Speaker 4: good backdrop on how to interpret things, but there's always
Speaker 4: something new, right every every cycle, every episode. Right now, technology, well,
Speaker 4: I think it's the it's the uncertainty around policy right
Speaker 4: in the moment, in the short term, you know, in
Speaker 4: the long run, as you say, I mean, technology is
Speaker 4: a big question. But I think in the near tournament's
Speaker 4: the uncertainty around policy and how that's likely to impact
Speaker 4: the economy.
Speaker 3: Steven Sandley, thank you so much, greatly appreciate him.
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Speaker 3: Charles Schwarz, Kathy Jones, who had an eventful weekend of
Speaker 3: ambiguity a weeker dollar, but the news flow it was
Speaker 3: sort of incomplete this weekend.
Speaker 2: There was this, that, and the other thing.
Speaker 3: Do we have confidence in acquiring full faith in credit
Speaker 3: out the curve this morning? I just don't see it.
Speaker 6: Yeah, we don't go We're not going out the curve
Speaker 6: very far. And the reason is simply that there is
Speaker 6: all that uncertainty. The risk premium has increased, the term
Speaker 6: premium has moved up, So you do you get paid
Speaker 6: a little bit more to take that risk, But I
Speaker 6: don't think you get paid enough until we get some
Speaker 6: sort of clarity. And clarity is the word at this
Speaker 6: the fad uses all the time.
Speaker 2: It's a word we.
Speaker 6: All want to use because we're waiting to see where
Speaker 6: a policy goes.
Speaker 3: I mean clarity. Friday, Paul had I had clarity. The
Speaker 3: Knicks are on a roll, things are great, red Sox
Speaker 3: maybe who would win one game? And then boom June
Speaker 3: came along. Everything changed and it to me it's this morning.
Speaker 5: Book absolutely is Kathy.
Speaker 7: I mean.
Speaker 5: Credit risk? Do I need to take credit risk here?
Speaker 5: When I considered it to your treasure and get almost
Speaker 5: four percent here you.
Speaker 6: Don't necessarily have to, but I don't think it's a
Speaker 6: big problem if you do. In investment grade credit, we're
Speaker 6: I'm pretty cautious on high yield, growing.
Speaker 5: More cautious some of the best performance.
Speaker 6: It has because the coupon is that okay, So you know,
Speaker 6: we're really meandering in terms of the rates right now,
Speaker 6: just going sideways, up and down, up and down. They're
Speaker 6: going sideways, but that puts the emphasis and returns on
Speaker 6: the coupon. So high yield has high coupons, so that's
Speaker 6: performing well. The other area that's performing well is international,
Speaker 6: and that's because the dollar is weakened. But otherwise you're
Speaker 6: earning the coupon. That's all that's going on right now.
Speaker 5: What's the important driver for the fixed income market today?
Speaker 5: It doesn't feel like it's the FED. It feels like
Speaker 5: it might be more of I don't know, t tariffs
Speaker 5: and tax bills and things like that. How do you
Speaker 5: think about Washington, DC as you think about the bond market.
Speaker 6: I try not to think, but good to see as
Speaker 6: much as possible, But obviously it's the factor there. I
Speaker 6: think at the end of the day, treasure yields are
Speaker 6: driven by what the Fed's doing, what inflation's doing, what
Speaker 6: economic growth is doing. And I do think in the
Speaker 6: long run, if we do have these tariffs, and that's
Speaker 6: the question mark, what will the tariffs be, how long,
Speaker 6: how big, we will get slower economic growth and we'll
Speaker 6: get lower inflation from that. But the offsets are that
Speaker 6: tariffs initially bump up prices and give us that inflation,
Speaker 6: and a week or dollar gives us some important inflation.
Speaker 6: So this is why we're going nowhere. Because you have
Speaker 6: one one policy that does one thing, you have another
Speaker 6: policy does another thing.
Speaker 5: So do we just are we kind of in a
Speaker 5: trading range here? For the treasuries, I mean, what do
Speaker 5: I do here? I guess I just buy them and
Speaker 5: clip the coupons.
Speaker 6: I guess, yeah. I think you stay benchmark are lower
Speaker 6: in terms of duration. There's not really a lot of
Speaker 6: enough reward for the risk to go too far out
Speaker 6: the curve. A same story and credit. You get paid
Speaker 6: pretty decently in investment grade credit. If you want to
Speaker 6: take risk in high yield, I just say stay at
Speaker 6: the upper end of high yield, and then you can
Speaker 6: look at international Because we do see the dollar continuing
Speaker 6: to weaken from here.
Speaker 3: I look at this and I want you to talk
Speaker 3: about Lizzie Saunders world. I know, you know, you get it.
Speaker 3: There's a Chinese wall, folks, between what Kathy Jones is doing.
Speaker 2: But there isn't.
Speaker 3: And the answer is there's dividend or share buyback as
Speaker 3: a yield proxy. There's the enthusiasms peoples this weekend, Paul
Speaker 3: saying heavy into mag seven.
Speaker 2: Da da da da da. Folks, these are just opinions here.
Speaker 3: Now, do you sense a point where there is a
Speaker 3: shift to people finding value in the coupon versus the
Speaker 3: game of equities?
Speaker 6: Yeah, we do. We see a lot of investors who
Speaker 6: have just gotten very cautious because of the volatility in
Speaker 6: the equity market and they have and the concern about
Speaker 6: all these policies and not knowing where it goes. So
Speaker 6: we have seen people shifting more into fixed income, clipping
Speaker 6: the coupon, reducing some of the volatility and risk in
Speaker 6: the portfolio.
Speaker 5: So again to my Federal Reserve, they can just sit
Speaker 5: on their hands for there a while. Now it seems like.
Speaker 6: Yeah, it looks like that's the name of the game.
Speaker 6: They sit on their hands for a while. Maybe September,
Speaker 6: wait and see if unemployment goes up. I mean that's
Speaker 6: going to be They've talked about the dual mandate a lot,
Speaker 6: and that's going to be the driver.
Speaker 5: I think undergraduate from Northwestern and an NBA from Northwestern.
Speaker 5: There are other schools out.
Speaker 6: There, you now, I mean, yes, I know, but I'm
Speaker 6: on Midwestern A.
Speaker 2: I've never asked you this. Did you study with Robert Gordon?
Speaker 6: Yes?
Speaker 3: Tell our audience, folks, we more in Stanley Fisher. The
Speaker 3: giant of midw growth economics was Robert Gordon. Massive influence.
Speaker 3: Good morning, Jim Glass and formerly with JP Morgan out
Speaker 3: on the left coast. Tell me about being in a
Speaker 3: classroom with the great Midwest growth economist.
Speaker 6: Yeah, he was a fantastic professor, so smart and so nice.
Speaker 3: He believed in the manufacturing process. Did he believe that
Speaker 3: manufacturing was different and it created a multiplier of jobs,
Speaker 3: just different than all these other service sector Bologney jobs
Speaker 3: like what Paul and I do me.
Speaker 6: Yeah, No, I think he did believe in that. You remember,
Speaker 6: you know, growing up in the Midwest, the rust belt
Speaker 6: and all that, and I think he had a real
Speaker 6: affinity for that and felt that the widening of the
Speaker 6: trade deficit. The loss of those jobs which were right
Speaker 6: producing solid middle class incomes was a big problem.
Speaker 3: We'll touch on this today, Kathy Joes, thank you so
Speaker 3: much for those comments, Professor Gordon. With the death the
Speaker 3: passing of Stanley a fisherman, we'll find some other people
Speaker 3: in the coming days to speak to, honest.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Applecarplay and Android Auto
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Speaker 1: say Alexa Play Bloomberg eleven thirty.
Speaker 3: Joining us justin di you are this morning is Maya
Speaker 3: McGuinness Committee for Responsible Federal Budget. We're thrilled Mia mckindness,
Speaker 3: really an authority on the mess we're in, could join
Speaker 3: us here. Maya. The critics of your world say CBO
Speaker 3: is too gloomy in their growth, and that we will
Speaker 3: continue to grow our way out of this mess, or
Speaker 3: at least sustain it.
Speaker 2: Do you buy it?
Speaker 8: Yeah, there's a lot of CBO bashing going on these days. No, certainly,
Speaker 8: I wish it were true. I think everyone wishes that
Speaker 8: you could cut taxes and that would unleash such huge
Speaker 8: growth that it would fix our fiscal problems. But clearly
Speaker 8: that's not the case. There are a number of outside
Speaker 8: estimators who are looking at the tax bill, the reconciliation bill,
Speaker 8: and trying to figure out what the effects on economic
Speaker 8: growth would be.
Speaker 9: And here's the way it works.
Speaker 8: Tax cuts have positive effects on growth, but not enough
Speaker 8: to generate enough revenues that they offset all of the
Speaker 8: loss from the tax cuts themselves, usually about twenty percent.
Speaker 8: The problem is that this tax bill in particular isn't
Speaker 8: as pro growth as what we saw in twenty seventeen
Speaker 8: the corporate tax rate cuts.
Speaker 9: Those were very pro growth.
Speaker 8: This less so chops up the tax base in a
Speaker 8: lot of ways, and our debt is now so large
Speaker 8: that the negative effects of that even outweigh those positive
Speaker 8: effects of tax cuts. So the bashing is just like
Speaker 8: angry parents yelling at the ref.
Speaker 3: I love that sounds like my weekend.
Speaker 2: Maa McGuinness.
Speaker 3: Henrietta Trees was with us, And the basic idea is
Speaker 3: we dashed to the Senate for the big, beautiful bill,
Speaker 3: that there will be moderate Republicans out there to save
Speaker 3: the budget. Day does that beast exist or are they prehistoric?
Speaker 3: And they off the room.
Speaker 8: Yeah, no, I wish that's how I thought it were
Speaker 8: going to play out. I'm worried because I think the
Speaker 8: moderate Republicans, just like we saw in the House, may
Speaker 8: actually be pushing to make the bill worse. So the
Speaker 8: bill has a tax cuts and the medium spending cuts,
Speaker 8: and what you're seeing from the moderates is they're more
Speaker 8: concerned about fewer spending cuts than more fiscal responsibility. And
Speaker 8: then on the very conservative side, where you have people
Speaker 8: who are willing to do the spending cuts you would need,
Speaker 8: they also are more prone to believe the myths of
Speaker 8: the fairy tale that growth can fix everything and you
Speaker 8: don't have to make any structural changes. So the problem
Speaker 8: is nobody makes hard choices in the budget anymore. We
Speaker 8: can do tax Right's stop.
Speaker 3: Paul wants to get in here, But I'm going to
Speaker 3: ask the rude question, by what did God's name happened
Speaker 3: in Washington? Where is the adultness of this debate?
Speaker 8: You know what killed adultness? I think partisan polarization. We
Speaker 8: are so much more focused on Republican versus Democratic preferences
Speaker 8: than we are How you fix the country. It's not
Speaker 8: just fiscal we're not fixing any of the big problems
Speaker 8: where there's anything you actually have to do, because the
Speaker 8: political calculation of don't let that other side have a
Speaker 8: win is outweighing the calculations of compromise and country first.
Speaker 8: And I'm deeply concerned about it. Just like polarizations undermining
Speaker 8: everything are weak fiscal positions keeping us from being prepared
Speaker 8: for the AI race we're in. Then you need to
Speaker 8: fix our social contract, global national security issues that are
Speaker 8: riskier than they used to be, all of these things.
Speaker 8: I think our polarization is put so much stand in
Speaker 8: the wheels. We're not getting anything done, and that's not
Speaker 8: allowing the adults to come forward. They exist behind closed doors.
Speaker 8: They're talking about it, but politically it's not rewarded right
Speaker 8: now in this populist and polarized moment, and we got
Speaker 8: to figure out a fix for that.
Speaker 5: I've been in this market sas nineteen eighty six. Nobody
Speaker 5: cares about deficits in a national debt. Why should we
Speaker 5: real estate?
Speaker 8: Well, you know, the bond market is starting to be
Speaker 8: a bit of a reminder. We actually are hearing so
Speaker 8: many more reminders.
Speaker 9: I'm with you.
Speaker 8: It's been just deafening in terms of people being concerned
Speaker 8: about it other than those of us who work on
Speaker 8: this all the time for the past years. But you're
Speaker 8: hearing many more concerns right now, with warnings, with downgrades,
Speaker 8: with problems in the bond markets, with other countries looking
Speaker 8: at the US debt and thinking this isn't as great
Speaker 8: a this isn't as sure thing as it used to be.
Speaker 8: We have the reserve currency where the safe haven. The
Speaker 8: central Bank did a lot that kept rates down for
Speaker 8: a long time. Many of these trends could gradually be shifting.
Speaker 8: And the whole point is we should not wait to
Speaker 8: find out if and when we get ourselves into trouble.
Speaker 8: We should fix the situation where we still have all
Speaker 8: of those privileges.
Speaker 5: And it's much easier to do so as long as
Speaker 5: people keep showing up at our debt auctions. Maya we
Speaker 5: don't have a problem. What do you say to those folks?
Speaker 8: Yeah, I say that those folks made that argument, and
Speaker 8: as a result, we borrowed more when interest rates were low.
Speaker 8: We now have trillions more in debt, and just small
Speaker 8: increases in interest rates have huge impacts on our interest
Speaker 8: payments as a result, which is why it's the largest
Speaker 8: growing part of the budget, the second line item in
Speaker 8: the budget. Those interest payments are much more possible to
Speaker 8: changing interest rates because of the arguments. Don't worry, be happy,
Speaker 8: keep borrowing. We shouldn't have done it then and we
Speaker 8: shouldn't now.
Speaker 3: My don't be a stranger. We got to get you
Speaker 3: on he or somehow. This is going to get worser
Speaker 3: through this summer. And articulate as always with the Committee
Speaker 3: for a Responsible Federal Budget. Brilliant work, Miami Guinness.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Apple Cockplay and Android
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Speaker 1: Bloomberg Terminal.
Speaker 3: Billion years ago, I decided I wouldn't learn Senate parliamentarian rules.
Speaker 3: Paul good idea. It's just like the only one that
Speaker 3: ever nailed this was Robert bird Well.
Speaker 2: I don't know we have of the Virginia. I mean,
Speaker 2: Henrietta Trace is in studio now to explain.
Speaker 3: Henrietta. I thought a quiet weekend for our elected officials.
Speaker 3: They're all pondering what's next for the Senate. Is they
Speaker 3: look at a big, beautiful bill the parliamentary the procedure
Speaker 3: of it, Will it be smooth?
Speaker 2: Yeah?
Speaker 7: The parliamentarian is one of my favorite jobs for sure,
Speaker 7: So I will take on that burden for you because
Speaker 7: I think it's a blast.
Speaker 9: The Senators are about to come in hot.
Speaker 7: It is all eyes on them for the next four
Speaker 7: to six weeks, and they have trillions of dollars literally
Speaker 7: with taxes, the medicaid cuts, all the various.
Speaker 9: Sanctions packages, and the tariff bills.
Speaker 7: All these pieces are before them right now and all
Speaker 7: eyes are going to be on them.
Speaker 9: The parliamentarian is going to be very busy, as you know.
Speaker 7: The Democrats and the Republicans get an opportunity to go
Speaker 7: before her and explain what it is they'd like to
Speaker 7: see taken out this bill. It's really a game of
Speaker 7: who knows the rule is the best who's the best
Speaker 7: player right now? And that really makes million dollar difference,
Speaker 7: billions of dollars difference thirteen years.
Speaker 3: Elizabeth McDonough m ACD. Elizabeth McDonough is the most powerful
Speaker 3: person in America. Who's that she's a parliamentary. It's like
Speaker 3: Alice at Wonderland. I mean, they have to go in
Speaker 3: front of her, Henrietta.
Speaker 5: Are we going to hear from the Democrats ever in
Speaker 5: this congress? Here, it's such a time for the Democrats
Speaker 5: to make themselves useful at all.
Speaker 9: I mean, it would be about time.
Speaker 7: I continues to be shocked at how absent Democrats are.
Speaker 7: I mean, Republicans are putting taxes on cans of beer?
Speaker 7: How is that not an immediate talking point? But here
Speaker 7: we have over the weekend, Majority Minority Leader Schumer sending
Speaker 7: a letter to his college saying, hey, y'all, it's time
Speaker 7: to get in the game. And as you point out,
Speaker 7: Elizabeth McDonough has been in the Senate since the nineteen
Speaker 7: nineties and has worked for some really esteemed folks and
Speaker 7: is now going to be the key arbiter or Democrats
Speaker 7: are going to go in there and say X, Y
Speaker 7: and Z is not permissible. Strike it from the bill,
Speaker 7: and that's going to hit the tax plans of the
Speaker 7: Republican Conference. One of the reasons that the bill has
Speaker 7: to get more expensive and that even more to the deficit,
Speaker 7: is because it doesn't have an economic impact by using
Speaker 7: the current policy baseline, which is the strategy that Senate
Speaker 7: Republicans are going to use, which will effectively write off
Speaker 7: three point eight trillion dollars worth of this package and
Speaker 7: say the cost is zero. You cannot pass legislation through
Speaker 7: reconciliation instructions unless it has a budget impact, So they
Speaker 7: kind of shoot themselves in the foot here. You get
Speaker 7: three point eight trillion dollars in free money, but it's
Speaker 7: not permissible under reconciliation. So that's going to be one
Speaker 7: of the core things that Democrats try to go off
Speaker 7: the works with with the parliamentarian and Leader Thoon. And
Speaker 7: it's about time DEM's getting the game. So yeah, I
Speaker 7: would be watching both for that.
Speaker 5: Who is a Democratic voice? Would you say? Is it
Speaker 5: Senator Chuck Schumer or is there somebody else in Democratic
Speaker 5: Party that I don't know? Maybe they're looking to step
Speaker 5: up here.
Speaker 7: I mean, I think the Democratic Party is at war
Speaker 7: with itself, trying to figure out if mckem Jeffries is
Speaker 7: the kind of speaker or minority leader that Nancy Pelosi
Speaker 7: could be or was. Certainly that's shown some lacking components.
Speaker 9: At a minimum.
Speaker 7: The party over there on the House side is warring
Speaker 7: between the young folks and the older folks, and they
Speaker 7: can't get a clearance or on committee chairs and on
Speaker 7: the Senate side, they're struggling just to have relevance or
Speaker 7: find a message.
Speaker 9: As I mentioned, I don't think it's too hard to
Speaker 9: come up.
Speaker 7: With a message against tariffs and taxes on really obvious
Speaker 7: things like back fool items.
Speaker 9: But they're nowhere. They have a lot of work to do.
Speaker 3: What do we not understand about the impact of the
Speaker 3: president and a new fifty percent tariff on quote unquote steel?
Speaker 3: What's the hendriy Ott of Trey's insight there.
Speaker 7: What's fascinating to me about that is that Lutnik and
Speaker 7: Bessent and Greer keep throwing the same playbook at all
Speaker 7: of these tariff actions that the President obviously wants.
Speaker 9: So the one I'm really ruminating on today is.
Speaker 7: This idea that Secretary Besson has trotted out that he
Speaker 7: and President She are going to get on the phone
Speaker 7: this week.
Speaker 9: That seems very unlikely. But also what is that going
Speaker 9: to resolve? They spoke on the phone four months ago.
Speaker 7: And now we see hundreds of billions of dollars worth
Speaker 7: of goods tariffed at you know, at some points one
Speaker 7: hundred and forty five percent coming in from China. So
Speaker 7: they have this playbook that's like, get Trump involved, but
Speaker 7: then also make sure he's not involved, because we don't
Speaker 7: know if we're going to get fifty percent tyres on
Speaker 7: steel overnight.
Speaker 2: Henriette a hugely valuable.
Speaker 3: The Surveillance Parliamentarium will send you a fruit masket.
Speaker 2: We really appreciate it. Henrietta Trey's Vada Partners.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Apple, Cocklay and Android
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Speaker 1: Just say Alexa, play Bloomberg eleven thirty.
Speaker 3: The newspaper make me smile, Lisa, I will try my best.
Speaker 5: Okay.
Speaker 10: So this one's in the Wall Street Journal. If you
Speaker 10: take a look at it, the headline is how much
Speaker 10: of the world's richest men get paid? Right, So we're
Speaker 10: talking about Elon Musk. Tesla has to decide, no, not
Speaker 10: at all. Tesla has to decide right how much to
Speaker 10: pay him. He's commanding this bigger steak. So he's actually
Speaker 10: the lowest paid chief executive of an S and P
Speaker 10: five hundred company. Last year, Tesla paid him zero because
Speaker 10: of that legal battle. Right, so he's been back and
Speaker 10: forth over this big stock award back in twenty eighteen.
Speaker 10: So they go through basically how much different founder CEOs make,
Speaker 10: Like the Wall Street Journal they ranked it and they
Speaker 10: said the top one makes about one hundred and sixty
Speaker 10: five million. But then you go to metas Mark Zuckerberg,
Speaker 10: you made twenty seven million last year. Michael Dell got
Speaker 10: three point one million, mostly cash. So they say they
Speaker 10: go through a couple options like well, what do you do?
Speaker 10: How do you approach this?
Speaker 5: Right?
Speaker 10: So they say you either make him show up and
Speaker 10: go big, you pay him like a CEO, or you
Speaker 10: pay him like everyone else. So this is the big
Speaker 10: struggle that Tesla has to deal with coming up. But
Speaker 10: it's it's a lot of the company world.
Speaker 5: Is richest person, correct, correct? Okay, I just want to
Speaker 5: make sure I can.
Speaker 3: I just say to take an issue that they include
Speaker 3: stock awards is compensation because if the stock goes down,
Speaker 3: there's not much compensation.
Speaker 2: You know, there's a risk.
Speaker 5: To it, right, and that's always because it ties aps
Speaker 5: growth or market whatever.
Speaker 2: They can The critics would say they rigid.
Speaker 10: Right the world's riches, Okay, to make sure you have that. Okay, Yeah,
Speaker 10: so this one too. It's talking about Meta how they
Speaker 10: want to fully automate ads using AI. So advertising makes
Speaker 10: up the bulk of Meta's business, right, So Meta, their
Speaker 10: ad platform already has a couple AI tools. But the
Speaker 10: debate behind all this is that some brands worry that
Speaker 10: these AI generated ads they won't match the human made
Speaker 10: quality because it's not being made by human it's being
Speaker 10: made by you know, a computer. But but smaller businesses say,
Speaker 10: you know, we could benefit because it just makes it
Speaker 10: easier for us to create the ads. So that's a
Speaker 10: battle going on AI for the creative correct to create it,
Speaker 10: to greet it. Basically, you just punching what you want
Speaker 10: and you know the video comes up. So I will
Speaker 10: help them do that, but you know it's a I
Speaker 10: use it for checking quick thing, but I always have
Speaker 10: to fact check it. But I have seen a lot
Speaker 10: of these, like the Wall Street Journal did this and
Speaker 10: they made like an entire movie trailer just AI like
Speaker 10: you see this, and how they're able to do that
Speaker 10: and make you sit back and why.
Speaker 3: When I started using it this weekend and it's it's
Speaker 3: it's it's you know, I'm sure I'm way behind everyone else.
Speaker 3: It's like, wow, do one what else it is?
Speaker 10: Okay, have you been to let's say, like a casual
Speaker 10: dining place lately, like an outback steakhouse or an Applebee's
Speaker 10: or anything like that. So these casual dining places, they're
Speaker 10: starting to attract more gen Z customers. And the reason
Speaker 10: why is because gen Z actually says they like going
Speaker 10: back to the whole family, you know, sit down dinner.
Speaker 10: It's more stable. It's tough economic time, so they like
Speaker 10: that instead of going to like the fast casual, you know,
Speaker 10: going to like a Kava or like a Chipotle. You know,
Speaker 10: as far as you know, what's more economically friendly to
Speaker 10: So just trying to figure that out. They say that
Speaker 10: they enjoy going to like the sit down place. They
Speaker 10: want to talk to people. Gen Z wants to sit
Speaker 10: down and have conversation.
Speaker 7: I don't know.
Speaker 2: Can I report on the instaurant quality. We had the
Speaker 2: after prom party this weekend and it was catered.
Speaker 3: By LaBelle to Talk. I'm pleased to tell you that
Speaker 3: the taco bell salsa sauce, it was ground beautifully into
Speaker 3: the Chinese oriental carpet. I mean the way that somebody
Speaker 3: got there stillttly right into it and got that salsa
Speaker 3: sauce right in there.
Speaker 5: Did it come with the margaritas?
Speaker 2: Though, no, it did not come with the margharitas. That's
Speaker 2: thank you. I would be in trouble if it had
Speaker 2: come with the markert read as well.
Speaker 3: Lisa Mateo, the newspapers, thank you so much.
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