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Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

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Speaker 2: Sing the best idea and on a Friday, I'll tell

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Speaker 2: you the distribution For me, it's mostly through Apple. There's

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Speaker 2: many other ways to get a podcast from Bloomberg podcast

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Speaker 2: but just two points here. As we ramp up a

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Speaker 2: new digital reality for everything I'm doing in economics, finance, investment,

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Speaker 2: and international relations. The first thing is out on YouTube.

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Speaker 2: Subscribe to Bloomberg Podcasts. That's really going to be the

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Speaker 2: platform forward one year, five years, ten years. The conduit,

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Speaker 2: the folding of all the work that Bloomberg does every

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Speaker 2: day it ends up in some form of audio file

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Speaker 2: and podcast. And the other is that I'm very much

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Speaker 2: focused on Apple podcasts. It's great, great distribution system, and

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Speaker 2: we're just thrilled with what our team is doing there.

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Speaker 2: This is an incredibly nuanced Friday. I can't say enough

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Speaker 2: about almost what I call micro tensions on the Bloomberg screen,

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Speaker 2: the launch pad screen, between equities, bonds, currencies, commodities, and

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Speaker 2: that micro tension on an inflation basis is this raging

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Speaker 2: debate about a stable inflation, some saying even higher inflation,

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Speaker 2: many many remodeling in a new disinflation to come Jim

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Speaker 2: Bianco has seized the high ground here. He's out of

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Speaker 2: Chicago and Bianco Research. Eighteen months ago he was a

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Speaker 2: lonely voice saying, don't be so certain about disinflation. We

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Speaker 2: get an update from Jim Bianco.

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Speaker 3: If you go to what the economists call the base effect,

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Speaker 3: the numbers from last year are very low, and we're

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Speaker 3: going to stay there. And that's going to be problematic

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Speaker 3: for a FED that is looking for confidence to cut rates.

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Speaker 3: They're going to continue to say, see sticky inflation. I

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Speaker 3: think the probability is above zero that we're going to

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Speaker 3: have a rate increase, but I don't think it's quite

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Speaker 3: at that fifty percent level that you would expect one.

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Speaker 3: But we are probably closer to that than a cut

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Speaker 3: right now. The data is just not there for a cut.

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Speaker 3: I mean, one payroll report that came in below expectations,

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Speaker 3: it was still one hundred and seventy six thousand jobs,

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Speaker 3: and that's nothing that you would look at and say,

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Speaker 3: this economy needs more stimulus.

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Speaker 4: Who to read this weekend to dovetail off Jim Bianco

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Speaker 4: without question. Lindsay Piegg's at Stifel, also out in the Midwest.

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Speaker 4: His adamant about the rationalizing I should say of a

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Speaker 4: rate increase. I can't say enough how lonely Bianco and

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Speaker 4: Piegsa are versus the zeitgeist of a new disinflation off

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Speaker 4: of oh, declining real estate prices and this, that and

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Speaker 4: the other thing. Taylor Swift tickets in Paris. They're not

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Speaker 4: declining and they're not part of the disinflationary trend. I

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Speaker 4: want to take some time here. I can't say enough

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Speaker 4: about how you have a theory or a belief and

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Speaker 4: there's a jump condition changed. There's a whole thing called

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Speaker 4: economic epistemology that talks about this. George Soros has been

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Speaker 4: very eloquent on it, out of Popper at LC in

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Speaker 4: the early fifties and onward. And don't want to go

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Speaker 4: into that right now, but you can have a jump

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Speaker 4: condition in thought. Decades ago, there was a company called

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Speaker 4: stern Stewart in a one volume book on economic value,

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Speaker 4: added that it didn't so much change the dialogue, but

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Speaker 4: began a dialogue over the silliness of what business media

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Speaker 4: does every day, which earnings, what a revenue is going

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Speaker 4: to do? What's gross to marts? Oh my god, ebit

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Speaker 4: dah I can't believe it. And basically what EVA said

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Speaker 4: economic value added was it's all hot air. You need

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Speaker 4: to look at the net operating profits after Texas, figure

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Speaker 4: out your own individual capital analysis and capital deployed and

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Speaker 4: capital allocation of a company. And there's a number of

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Speaker 4: different ratios here. And it's worth the subscription to a

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Speaker 4: Bloomberg terminal to go say Apple AAPL equity WACC the

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Speaker 4: way that average cost of capital screen WACC of the

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Speaker 4: Bloomberg is literally worth Why you buy a Bloomberg. It's

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Speaker 4: just that good. And the answer is this is a

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Speaker 4: whole science onto its own. And Craig Sterling was at

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Speaker 4: the advent of this with EVA Dimensions working at Credit

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Speaker 4: Suitees and now to Monday. This is one of the

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Speaker 4: highlights of what we've been doing on single best idea,

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Speaker 4: Craig Sterling here on if you don't allocate capital in

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Speaker 4: a good and constructive way, you are toast.

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Speaker 5: Most companies are being run very capital efficient. You know,

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Speaker 5: investors are not le letting them do things in the

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Speaker 5: past that may have destroyed returns on capital and hurt

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Speaker 5: future growth and ultimately their save price. Companies are being

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Speaker 5: well run. Not all, but the ones that aren't. We

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Speaker 5: see activists come in and I think you're seeing these

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Speaker 5: companies well run in analog semis. You know, this is

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Speaker 5: an industry that is generally well run. It's gotten more

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Speaker 5: concentrated in recent decade or so. So you've got the

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Speaker 5: winners that have done a good job. And you know,

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Speaker 5: you look at a company or an industry like chemicals

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Speaker 5: or energy, which have not been great stewards of capital

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Speaker 5: over time, but these companies are competing way more rationally,

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Speaker 5: not spending just to spend and grow, and the investors

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Speaker 5: are going to start rewarding.

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Speaker 4: This just a superb conversation, just what we love to do.

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Speaker 4: We've had a phenomenal week at Bloomberg Surveillance. I can't

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Speaker 4: I don't even know where to begin to describe on

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Speaker 4: the conversations because one of the highlights was Jess Meanton

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Speaker 4: where their definitive analysis of sweet greens. She is the

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Speaker 4: chief Surveillance SALID correspondent. No idea you could pay eighteen

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Speaker 4: dollars for eleven hundred calorie salad with a name I

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Speaker 4: can't pronounce. But the kids are lineup, Eric and the rest,

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Speaker 4: they're all lined up out the door. Fifteen feet deep

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Speaker 4: for a sweet green salad. That's my goal this week,

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Speaker 4: and I'm gonna try to take a sweet green salad.

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Speaker 4: We'll see if I get in the door and am

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Speaker 4: able to make the order. Paul Sweeney says, you need

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Speaker 4: to take a course to make an order from New York.

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Speaker 4: We're on Apple car Play. We're on Android play as well.

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Speaker 4: On YouTube, subscribe Bloomberg podcast search Bloomberg Podcasts. We're there

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Speaker 4: with a two hour, fifty six minute replay. You'll see

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Speaker 4: that out and on Apple.

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Speaker 2: This is single best idea