1 00:00:02,520 --> 00:00:08,160 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:12,880 --> 00:00:16,000 Speaker 2: The single best idea, here's the single best idea of 3 00:00:16,120 --> 00:00:20,200 Speaker 2: super Bowl sixty. It was not Bloomberg Surveillance day after 4 00:00:20,280 --> 00:00:23,200 Speaker 2: super Bowl sixty, but we've been doing this for a 5 00:00:23,239 --> 00:00:26,759 Speaker 2: few years. Today's show is the strongest post super Bowl 6 00:00:26,840 --> 00:00:29,640 Speaker 2: show we've ever ever had, and it was so because 7 00:00:29,680 --> 00:00:33,559 Speaker 2: of always our guests and always the news flow. A 8 00:00:33,800 --> 00:00:36,680 Speaker 2: huge economic week had What a joy to have the 9 00:00:36,760 --> 00:00:39,880 Speaker 2: Vice Chairman of the Federal Reserve of the former Vice chairman, 10 00:00:39,920 --> 00:00:43,640 Speaker 2: I should say for Chairman Powell, Richard Clareda of Columbia 11 00:00:44,200 --> 00:00:49,080 Speaker 2: Richard Clarina, now of Pimco. Brilliant question Paul Sweeney asked 12 00:00:49,360 --> 00:00:55,760 Speaker 2: Vice Chairman Clarida about nineteen fifty one and FED independence. 13 00:00:56,120 --> 00:01:00,120 Speaker 1: This is what they call in DC, very big tent language. 14 00:01:00,200 --> 00:01:02,840 Speaker 1: It means different things to different people. The one accord 15 00:01:02,840 --> 00:01:05,319 Speaker 1: that we do know about, which is the one that 16 00:01:05,400 --> 00:01:08,080 Speaker 1: was struck in nineteen fifty one between the Treasury and 17 00:01:08,120 --> 00:01:11,640 Speaker 1: the FED, was a signal moment and FED independence because 18 00:01:11,640 --> 00:01:13,840 Speaker 1: it got the FED out of the business of essentially 19 00:01:13,880 --> 00:01:16,319 Speaker 1: camping treasure yiels. In fact, as I like to teach 20 00:01:16,360 --> 00:01:19,600 Speaker 1: my students, we all know that world War two ended 21 00:01:19,640 --> 00:01:21,920 Speaker 1: in nineteen forty five, but the FED didn't get the 22 00:01:21,959 --> 00:01:25,759 Speaker 1: memory till nineteen fifty one because the Truman administration pressured 23 00:01:25,760 --> 00:01:28,000 Speaker 1: the FED to keep a cap on rates. The FED 24 00:01:28,000 --> 00:01:32,360 Speaker 1: declare independence in the accord. I think now, if there 25 00:01:32,400 --> 00:01:34,600 Speaker 1: is a Treasury Fed accord, it would not be so 26 00:01:34,720 --> 00:01:37,520 Speaker 1: much focused on that. It would be focused on for example, 27 00:01:37,760 --> 00:01:40,120 Speaker 1: should the FED a whole two trillion dollars of mortgage 28 00:01:40,120 --> 00:01:43,399 Speaker 1: backed securities? Should the FED the composition of the Fed' 29 00:01:43,480 --> 00:01:47,360 Speaker 1: portfolio really be tilted toward tea bills unless from holding 30 00:01:47,400 --> 00:01:49,760 Speaker 1: ten and thirty year treasury So I think there are 31 00:01:49,760 --> 00:01:51,400 Speaker 1: a lot of conversations. 32 00:01:50,720 --> 00:01:54,480 Speaker 2: To have ricer Claire to there of a PIMCO. So 33 00:01:54,560 --> 00:01:57,680 Speaker 2: yesterday we're in a game and I'm drifting off because 34 00:01:57,720 --> 00:02:01,320 Speaker 2: it was, you know, it was such an offensive, you know, 35 00:02:01,520 --> 00:02:04,440 Speaker 2: sort I like, not boring, but it's great defense and all. 36 00:02:04,560 --> 00:02:08,440 Speaker 2: But I'm just thinking about I'm thinking about tech, and 37 00:02:08,520 --> 00:02:11,400 Speaker 2: my question was, Okay, there's a bond offering last week, 38 00:02:11,480 --> 00:02:14,760 Speaker 2: there's got to be another one sometime soon, and after 39 00:02:14,840 --> 00:02:18,040 Speaker 2: that another one. Well like six hours later, we get 40 00:02:18,040 --> 00:02:22,680 Speaker 2: this deal from Alphabet Google including thirty two and one 41 00:02:22,800 --> 00:02:26,520 Speaker 2: hundred year bonds. Bloomberg wrote it up brilliantly in London. 42 00:02:26,760 --> 00:02:30,040 Speaker 2: The one hundred year bond is in Sterling. It's going 43 00:02:30,080 --> 00:02:33,440 Speaker 2: to be fascinating. We dragged in Robert Shiftman, expert on 44 00:02:33,600 --> 00:02:38,200 Speaker 2: tech credit. Robert Schiffman on these bond deals by hyperscalers. 45 00:02:38,440 --> 00:02:41,120 Speaker 3: I actually think this is pure genius. Weight at average 46 00:02:41,120 --> 00:02:44,400 Speaker 3: cost of debt capitals near zero. You've got some of 47 00:02:44,400 --> 00:02:49,040 Speaker 3: the smartest, wealthiest businessmen in the country making a long 48 00:02:49,160 --> 00:02:52,240 Speaker 3: term bet on AI. They don't care about what the 49 00:02:52,240 --> 00:02:55,760 Speaker 3: stock is doing tomorrow. They know that their balance sheets 50 00:02:55,800 --> 00:02:59,440 Speaker 3: are pristine and they are building for long term success. 51 00:03:00,120 --> 00:03:02,720 Speaker 3: I think, you know, people always ask us, why are 52 00:03:02,720 --> 00:03:04,880 Speaker 3: these balance sheet double A and triple A. They've got 53 00:03:04,919 --> 00:03:07,200 Speaker 3: so much cash, Why don't they buy back more stock, 54 00:03:07,240 --> 00:03:09,720 Speaker 3: Why don't they give up bigger dividends. It's because they 55 00:03:09,760 --> 00:03:11,960 Speaker 3: have vision, and this is some of the vision. You 56 00:03:12,080 --> 00:03:14,720 Speaker 3: want to be able to put capital to work whenever 57 00:03:14,760 --> 00:03:17,320 Speaker 3: you want, in whatever size you want, and they're doing 58 00:03:17,360 --> 00:03:19,680 Speaker 3: it now, and quite frankly, I think is genius. 59 00:03:19,840 --> 00:03:22,360 Speaker 2: Can't say enough about his work. Robert schiff And on 60 00:03:22,400 --> 00:03:25,320 Speaker 2: the terminal on the Bloomberg. You have to have, you know, 61 00:03:25,360 --> 00:03:28,200 Speaker 2: you have to have a Bloomberg terminal, but writing up 62 00:03:28,280 --> 00:03:33,120 Speaker 2: on tech and credit he is just absolutely definitive. We're 63 00:03:33,120 --> 00:03:35,880 Speaker 2: in a podcast. We're on Apple Well all that they 64 00:03:35,880 --> 00:03:40,200 Speaker 2: did at the Super Bowl. We're on Spotify, on YouTube podcasts, 65 00:03:40,360 --> 00:03:43,960 Speaker 2: single best idea.