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Speaker 2: Brief nowt by one of the great optimists, Jeffrey Cleveland
Speaker 2: is Director, chief economist paidon ragel Out and Los Angeles.
Speaker 3: Surely good briefst this morning. We get perspective.
Speaker 2: He's had time to digest some of the data. Jeffrey
Speaker 2: Cleveland with us with Peydon and Regal. Jeffrey, I'm looking
Speaker 2: at the market and it sort of says rate cut.
Speaker 3: Tilt in place? Do I have that right?
Speaker 4: I think the biggest thing I noticed here is August
Speaker 4: was slightly negative after revisions, so you had some downward revisions.
Speaker 4: The three month average is still pretty meager, sixty two
Speaker 4: thousand or so, and the direction of travel on the
Speaker 4: unemployment rate it appears to be going higher. So we're
Speaker 4: now four point four I think, headed to four point
Speaker 4: five four point six, So I think this does keep
Speaker 4: the possibility of a rate cut definitely on the table.
Speaker 4: You see that reaction initially in the bond market, particularly
Speaker 4: in the front end.
Speaker 5: But that's the initial read.
Speaker 2: And Paul, the single statistic here, which Cleveland of course
Speaker 2: alludes to, is a survey on changing non firm payrolls
Speaker 2: for August just twenty two thousand.
Speaker 3: The reality rather and it's a negative statistic.
Speaker 2: It's a negative four thousand on a revision on the
Speaker 2: August report.
Speaker 3: That's emotional. That negative number is emotional.
Speaker 5: Absolutely.
Speaker 6: How about on the looking at the wage market here, Jeffrey,
Speaker 6: you know, on an annualized the basis average annually earnings
Speaker 6: up about three point eight percent. That holds pretty steady.
Speaker 6: So if you've got a job, you're getting paid for it.
Speaker 6: It seems like, yeah, I think that's the positive take here.
Speaker 5: You still have some.
Speaker 4: Modest payroll growth on the three month average, you still
Speaker 4: have wage growth, so overall aggregate income, the consumer still
Speaker 4: has some spending wear withal.
Speaker 5: So this is not a doom and gloom type scenario.
Speaker 5: Sorry for the bears out there.
Speaker 4: It's going to create a little more uncertainty over the
Speaker 4: next few months as we continue to digest this, but
Speaker 4: it's not a you know.
Speaker 5: Slam dunk data of report that points to a recession.
Speaker 6: Yeah, so what do you think, what are some of
Speaker 6: the real time data telling you about kind of kind
Speaker 6: of where we are today with the labor market. Is
Speaker 6: this number reflective or is it just a little bit No.
Speaker 4: I think we do think that all the signs that
Speaker 4: we've seen through October November data would point to a
Speaker 4: higher unemployment rate than four point four, So you know,
Speaker 4: something like four point five four point six would make sense.
Speaker 4: So that's that's a bit of a concern. I think
Speaker 4: also the layoff announcements that we've seen that's caught, that's
Speaker 4: you know, definitely captured our attention. So it's very bond
Speaker 4: bullish environment. You know, government bond yields probably on a
Speaker 4: twelve month horizon or or quite a bit lower if
Speaker 4: we're right.
Speaker 2: I let Jeffrey Cleveland at this, and I've alluded to
Speaker 2: this with a couple of conversations this morning.
Speaker 3: And you know, I'm sorry, folks, this goes back to
Speaker 3: what you study at Claremont in school, you know what
Speaker 3: I mean.
Speaker 5: Wow, But it's a.
Speaker 2: History, Jeffrey, how fed ignore a fragile labor economy. I
Speaker 2: get the inflation, this inflation that fancy mathematics and all that,
Speaker 2: But the fact is the labor.
Speaker 3: Economies a bit fragile. That's got to be top of
Speaker 3: top of list, I think so.
Speaker 5: But you know what, what does history tell us about
Speaker 5: the FED?
Speaker 4: Usually they're reactive, not proactive, right, So there is a
Speaker 4: you know, an inertia factor if you will, or a
Speaker 4: lag between when we think we see something in the
Speaker 4: data and policy makers take action. We definitely saw that
Speaker 4: in twenty one. In twenty two, I think the FED
Speaker 4: was behind the curve there, So it wouldn't surprise me
Speaker 4: if they were a little little sluggish.
Speaker 5: They're also different.
Speaker 4: Opinions, Tom, I mean when I talk to clients all year,
Speaker 4: it's been employedation. If you if you are able to
Speaker 4: push back on one of the inflation theories, they'll quickly
Speaker 4: come up with another.
Speaker 5: You know, it's been like that all year. So you
Speaker 5: know that's just the focus.
Speaker 4: And with the sorry, with inflation still a little bit
Speaker 4: above target, uh, you know.
Speaker 5: People have still have that mindset.
Speaker 4: So you need a clear indication to the contrary to
Speaker 4: really get people over onto your view that maybe labor
Speaker 4: market is the bigger, bigger issue, all.
Speaker 6: Right, Jeffrey, So we got a view here on the
Speaker 6: labor market today. How about inflation, the other part of
Speaker 6: the Fed's mandate. What's your view there?
Speaker 4: Not worried about it when you exclude the terror pressure.
Speaker 4: You know, inflation on our view is two point four
Speaker 4: right now year over year on core PCE, I mean
Speaker 4: more or less, we're if you round that down, it
Speaker 4: rounds to two percent. I think, Uh, so, you know
Speaker 4: we're at target if you exclude the tariffs, and we
Speaker 4: don't think tariffs are an enduring inflation feature, so it's
Speaker 4: a one time pop to price level, so we're not worried,
Speaker 4: and then we see more scope for disinflates in Paul
Speaker 4: next year, I think you can see it on non
Speaker 4: housing services and importantly on the housing component of inflation,
Speaker 4: so we'll see lower inflation.
Speaker 5: We can we could get back to two.
Speaker 4: Percent inflation sometime next year, maybe even below two percent.
Speaker 5: Guys, it'd be interesting.
Speaker 2: I want to I want you to do a nail
Speaker 2: ferguson if we get a quarter point rate cut, what
Speaker 2: actually happens.
Speaker 5: Well, you know this is a common thing people say
Speaker 5: to me.
Speaker 4: Thomas say, ah, you know, quarter point won't do anything
Speaker 4: for the labor market. And my response to that is, well,
Speaker 4: why don't we just try anyway you'll get a dance.
Speaker 7: I mean, it does.
Speaker 4: It does have an impact. If if the bond market
Speaker 4: senses out that the direction of travel for the overnight
Speaker 4: rate is you know, another one hundred basis points lower
Speaker 4: and more over the next year, that will feed through
Speaker 4: into ten year yields, That will affect corporate borrowing cap
Speaker 4: That will also feed through into mortgage rates.
Speaker 5: You know, I think dall.
Speaker 4: Earlier, Paul Sweeny says, yeah, exactly, yeah, exactly.
Speaker 5: So it will have an impact. It's not just the
Speaker 5: twenty five basis points I'll fine tuning. It's more than that.
Speaker 3: Jeffrey, thank you so much. This has been great. Just
Speaker 3: thank you for this job's report coverage.
Speaker 5: Stay with us.
Speaker 2: More from Bloomberg Surveillance coming up after this.
Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us Live
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Speaker 5: Or watch us live on YouTube. So here's the real.
Speaker 3: World, folks.
Speaker 2: I'm in a speech or whatever, and there's some young
Speaker 2: cherub who says, when did life change? Life changed with
Speaker 2: David Melpass. I can tell you exactly when it did.
Speaker 2: Something called libor ois went out for standard deviations. I'm
Speaker 2: in the show. The place is chaos, top to bottom
Speaker 2: of Thursday in August of two thousand and seven, and
Speaker 2: I just screwed. I didn't screen Paul my usual check good,
Speaker 2: you know, like HR approved. Yet Alan Meltzer get David
Speaker 2: Malpass and it was a magical show. One of the
Speaker 2: iconic moments with then all that we're doing here at Bloomberg,
Speaker 2: mister Melpass, when I'm from bear Stearns, where he was
Speaker 2: definitive in writing essays on the American experiment, to his
Speaker 2: public service at the World Bank, can I just say,
Speaker 2: you look tanned and rested after the grind. What's the
Speaker 2: biggest grind of public office that we don't see?
Speaker 8: It's good to see your town and Paul. The grind
Speaker 8: is the travel. These conferences are constant, and I said no, no,
Speaker 8: no to each of the conferences I didn't go to.
Speaker 3: Davos said yes, yes.
Speaker 8: People say, but this is your responsibility, and so you
Speaker 8: travel and nothing happens at the conferences. So I was
Speaker 8: happy to see President Trump on this latest the G
Speaker 8: twenty going on in South Africa say we're just not
Speaker 8: sending people because they don't do anything that's useful.
Speaker 3: I want to cut to the.
Speaker 2: Arch mail pass issue, which is the physics of two Americas.
Speaker 2: We have an America that's booming, Paul and I do
Speaker 2: it every single day. We have an America being left
Speaker 2: behind on an historical basis. How separate are we right now?
Speaker 8: I think they call it inequality or that underperformance by
Speaker 8: the bottom is massive, whether from a data standpoint it's
Speaker 8: the worst. But what we need is job growth at
Speaker 8: the bottom and median income growth.
Speaker 3: That is the whole.
Speaker 8: Concept of a good economic policy. I did that around
Speaker 8: the world that the way we evaluate whether an economic
Speaker 8: program is going forward is the median income, the income
Speaker 8: of people in the middle after inflation going up. And
Speaker 8: so what we need or what I think lots of
Speaker 8: policy changes can help with affordability right now that I've
Speaker 8: written about is what the Federal Reserve could do to
Speaker 8: stop stop causing this income inequality. We need a lot
Speaker 8: more energy production. We need permitting reform, which is really
Speaker 8: important in Congress. I think a capital gains tax cut
Speaker 8: would actually enable a lot more capital mobility or Paul.
Speaker 2: Accelerated depreciation YEP list of tours and slocks.
Speaker 3: Is that puts a point on GDP.
Speaker 8: And very importantly it points a point or and that
Speaker 8: growth comes from small businesses that invest in new machines,
Speaker 8: which then enable workers in productivity. So it's a virtuous
Speaker 8: circle that you create from. Then we desperately need that now.
Speaker 8: I think Trump is going totally in the right direction.
Speaker 8: The problem is implementation of it. In my worry right
Speaker 8: now is that the federal choke it off.
Speaker 6: So that's kind of where you were two weeks ago
Speaker 6: with your opinion piece in a Wall Street Journal talking
Speaker 6: about affordability, and it was certainly an issue in the
Speaker 6: elections in New Jersey and Virginia. Is the Fed too
Speaker 6: slow here in cutting rates to address its influence on affordability?
Speaker 8: Yes, So I did a Wall Street Journal article in
Speaker 8: June that they should cut, should have cut in that
Speaker 8: June meeting, And wouldn't the world be better if they
Speaker 8: had cut in June because you would have had the
Speaker 8: growth that came out.
Speaker 3: Of that, and the inflation wasn't occurring.
Speaker 8: You know, people were kept saying there was inflation and
Speaker 8: it didn't show up, so they would have been able
Speaker 8: to cut and cause allowed growth. That would have helped
Speaker 8: the supply chains, and maybe whether or not they could
Speaker 8: keep going now anyway you would have had the benefit
Speaker 8: of it and not. I put in this latest article
Speaker 8: the cost to the fiscal deficit from them waiting. So
Speaker 8: the government has been paying way too much interest in
Speaker 8: The FED, of course itself pays interest to banks for
Speaker 8: three months where the rate was too high, so they
Speaker 8: can change that. But I'm worried that where we've already
Speaker 8: seen the bottom of the ten year yield, unless the
Speaker 8: Fed changes its models, they're right now looking backward at
Speaker 8: inflation and they're going to have excuses why they don't
Speaker 8: want to cut anymore.
Speaker 6: As a former president of the World Bank, you have
Speaker 6: a unique view of global trade. What's your view of
Speaker 6: the tariff policy of this administration and its impact on
Speaker 6: global trade.
Speaker 8: I've emphasized that the trading system was really broken. We
Speaker 8: were in it thinking that everybody was playing by the
Speaker 8: same rules. In China wasn't. And you can look back
Speaker 8: and say, well, when did people figure it out? That
Speaker 8: doesn't matter. You're stuck in a world wto the World
Speaker 8: Trade Organization system that doesn't work at all. When you
Speaker 8: have the second biggest economy with very aggressive industrial policy.
Speaker 8: They're using economy of scale. That means if you invest
Speaker 8: in your the first mover in a sector, then you
Speaker 8: wipe out all your competition.
Speaker 2: To send David mailpass. You don't see this on radio,
Speaker 2: Lucky you. For those of you on YouTube, Mailpass has
Speaker 2: a gold tie on today that looks like the plated
Speaker 2: gold in the President's oval office as well.
Speaker 3: You are one of the few people that come in
Speaker 3: here that have been in the.
Speaker 2: Trenches of working out of a van running for public office,
Speaker 2: in your case, the Grand Old Party. How does the
Speaker 2: GOP move forward with a centrist tendency? How do the Democrats,
Speaker 2: the evil Democrats, David move forward with a central tendency?
Speaker 2: Where is the center tendency that you've written about for
Speaker 2: forty years?
Speaker 8: I ran for Senate in New York State in twenty ten,
Speaker 8: so it was the Tea Party days. That was the
Speaker 8: idea that you could create growth with lower tax rates,
Speaker 8: with different policies, and basically with a giant upheaval in Washington.
Speaker 8: So that means each department changing so that they stop
Speaker 8: blocking growth.
Speaker 2: Yeah, but look at the president's rating. I mean the
Speaker 2: giant up people ain't too popular right now. Where how
Speaker 2: do we get back to the centrist politics you and
Speaker 2: John Writing.
Speaker 3: And all wrote about years ago.
Speaker 8: So I think you have to implement the upheaval that
Speaker 8: is going on now, and that means in each area
Speaker 8: you need more work on the tax code. You need more,
Speaker 8: of course, more work on restraining government spending because Washington
Speaker 8: just wants to spend all the money in the world.
Speaker 8: And very importantly, these federal reforms would allow capital to
Speaker 8: flow to small businesses. So that's the core of it.
Speaker 8: It's the same message, and I think it is Trump's
Speaker 8: basic message, but you have to implement each part of
Speaker 8: it in each department.
Speaker 3: No, maybe that's not happening. David Monpus, thank you so much, Paul.
Speaker 3: I'm just going to mention this now. The interview of
Speaker 3: the year.
Speaker 2: Maybe the moment was Nancy Lazarre talking much like David
Speaker 2: about it at the micro level. We have to create jobs.
Speaker 2: You do it through incentives at all.
Speaker 6: I don't know, We'll see, We'll have to see. We've
Speaker 6: got a lot of economics.
Speaker 3: You're enjoying not being in public service community.
Speaker 8: Yeah, yeah, that's fine. For one, I exercised more and
Speaker 8: have have been don't travel as which you know wasn't
Speaker 8: isn't I've done it for so many years.
Speaker 2: It's uh, do you get World Cup tickets?
Speaker 5: Special tickets? Very important?
Speaker 8: I signed the FIFA ball so at the G twenty
Speaker 8: in Indonesia in twenty twenty two. It was amazing the
Speaker 8: world that Ukraine had already been invaded. There was this
Speaker 8: big round table and so Biden was there in Macron
Speaker 8: and everybody and all they and the FIFA guy was
Speaker 8: there and that he was the center of attention.
Speaker 5: And I got signed.
Speaker 3: Bass with the FIFA guy. Greatly appreciate it.
Speaker 2: Mister Malpass course, former President of the World Bank.
Speaker 3: Stay with us.
Speaker 2: More from Bloomberg Surveillance coming up after this.
Speaker 1: This is the Bloomberg Surveillance podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Applecarplay and Android Auto
Speaker 1: with the Bloomberg Business app. You can also listen live
Speaker 1: on Amazon Alexa from our flagship New York station, Just
Speaker 1: say Alexa play Bloomberg eleven thirty.
Speaker 2: It is a joy to talk to Martin Norton. She's
Speaker 2: with the Canadians Empower Full Disclosure. They handle the Bloomberg
Speaker 2: four oh and K do a great job on that.
Speaker 3: Get the little app.
Speaker 6: Yeah, I get the app. Triple leverage all cash check
Speaker 6: it out every once in a.
Speaker 2: While, four point two percent, yeah, but leverage up seven
Speaker 2: point three the more the usual empower drop my phone
Speaker 2: the empower fee. Martin Norton with this year with perspective
Speaker 2: on the markets. Are people participating in this mental tech rally?
Speaker 2: Like in the canvas of the billions you people handle?
Speaker 2: Are people participating in Nvidia and tech?
Speaker 7: We have such a great AI story going on right now,
Speaker 7: but when I think about the questions that I get
Speaker 7: from clients, there is still a lot of consternation out there.
Speaker 7: I think there's fear. I mean the tariff moment was
Speaker 7: a moment of great fear I think broadly for a
Speaker 7: lot of clients. And then there's still a lot of
Speaker 7: enthusiasm around alternatives like gold and crypto and people concerned
Speaker 7: about the US future. So I think people are in financially,
Speaker 7: but mentally and emotionally there's still some hesitation and reservation there.
Speaker 6: I mean, it's proven once again today this is an
Speaker 6: AI marketplace. That's for sure that the AI narrative, as
Speaker 6: it were, is still alive. And well, yeah, how about
Speaker 6: diversification into fixed income? How do you try to weave
Speaker 6: that discussion to your conversation.
Speaker 7: Yeah, you know, I would say that after twenty twenty two,
Speaker 7: there was real hesitation on the part of financial advisors,
Speaker 7: on the part of retail investors, real concern about whether
Speaker 7: fixed income was ahead. But what we're seeing this year
Speaker 7: from fixed income is pretty strong returns. I think for
Speaker 7: a lot of folks, yields are a lot better. I think,
Speaker 7: you know, there's a lot of I would say commentary
Speaker 7: around is sixty forty dead, but I think it's it
Speaker 7: certainly has delivered in twenty twenty five. And so with
Speaker 7: all the doubts you know that continue to persist around
Speaker 7: that type of basic strategy, I don't know if people
Speaker 7: can throw the towel on it at this point in time.
Speaker 6: What do you what's the discussion you guys have with
Speaker 6: your clients about rebalancing, you know, in terms of you've
Speaker 6: got some real big winners, let's take a little money
Speaker 6: off the table.
Speaker 3: And he asked those questions just to.
Speaker 5: Cure balance.
Speaker 7: Interesting, So here's my view on rebouncing at this particular moment.
Speaker 7: I think when we're in a AI moment like this,
Speaker 7: an innovation cycle like this one where there is just
Speaker 7: massive enthusiasm and maybe rightly so, around what the technology
Speaker 7: is able to do for the economy, and then those
Speaker 7: gains a crew to the AI winners. At the moment,
Speaker 7: we have the potential for prices to soar past with
Speaker 7: enthusiasm what the fundamentals say, and then we get these
Speaker 7: bouts of volatility. And so in my mind, you know,
Speaker 7: we should talk about rebalancing on a permanent basis, but
Speaker 7: in a moment like this one, I think it can
Speaker 7: help save some of the fits and starts for a portfolio.
Speaker 2: But I know it's not an empowered opinion. But with
Speaker 2: all your work, particularly at morning Star Martin Norton, the
Speaker 2: bottom line is the key plug in to the rebalancing
Speaker 2: theory is the how oftenness of it. And respectfully would
Speaker 2: say the street has an addiction to this because as
Speaker 2: as an.
Speaker 3: Excuse to get in front of clients.
Speaker 2: In the academic study Paul Across cycles bear markets, the
Speaker 2: wheneness of it is a huge deal.
Speaker 3: Do you find it in that's a great way that
Speaker 3: people are doing it too much. They're moving in there
Speaker 3: trading there for one key.
Speaker 7: I mean We've been playing around with some different studies
Speaker 7: on rebalancing and if you're taking a look at like
Speaker 7: a monthly balance scheme and you look at what that
Speaker 7: would generate. If you're just something tracking the S and
Speaker 7: P five hundred, you could see a turnover of less
Speaker 7: than ten percent on a monthly basis, but that generates
Speaker 7: overall turnover about of one hundred percent on an annual basis.
Speaker 3: And that really talking on a couch over robin hood.
Speaker 6: So we're just confirmed once again today this is an
Speaker 6: AI driven marketplace. Outside of that, yeah, are you guys
Speaker 6: looking for value in other sectors or yeah? I mean
Speaker 6: if you do that too much, you kind of missed
Speaker 6: out on the performance.
Speaker 5: Well, that's true.
Speaker 7: I mean, it's interesting that if you were, if you're
Speaker 7: a real skeptic on the AI theory and you move
Speaker 7: out of it completely, you're missing the bulk of the
Speaker 7: US market gains. Right, the US no longer looks so
Speaker 7: exceptional relative to other markets. I think one thing that
Speaker 7: I listened to Jeffrey Gunlock's podcast on odd Lots recently,
Speaker 7: and one of the things he said is, you know,
Speaker 7: the market is expensive everywhere, and it's hard from the
Speaker 7: research that we've done, at least within equities to disagree,
Speaker 7: because when we look at valuations, we look at it
Speaker 7: on this deathcile basis. We want to make sure that
Speaker 7: we're only looking at the extremes because valuations, when they're
Speaker 7: just modestly high, they're really not predictive of returns. So
Speaker 7: we want to make sure we're really capturing those extreme moments.
Speaker 7: And when we do that, sector by sector, most of
Speaker 7: them look to be at extremes.
Speaker 2: I let me do a data check here, Martin Norton,
Speaker 2: with us within powers, we look to the shattered retirement
Speaker 2: economy of America. Futures up one o five, up eighty
Speaker 2: three hours ago. They've just really advanced. Often vidia the
Speaker 2: tech A jobs report that came up near four point
Speaker 2: five percent round up unemployment. Thank you Michael McKee for that.
Speaker 2: Futures up one o three, NASEK up two percent right now,
Speaker 2: vis coming in with a vengeance nineteen point seven three.
Speaker 2: The sweety yield right now three point six to zero,
Speaker 2: the handles a three point five six. That really gets
Speaker 2: my attention. There maybe on a bet of what we'll
Speaker 2: see in December. I'm sure you know this. The three
Speaker 2: decimal points and you probably can't tell me, but give
Speaker 2: me a tendency here. How many people it empower over
Speaker 2: whatever age? Yeah, are properly funded for retirement? Is it
Speaker 2: single digit or is it too.
Speaker 3: Gloomy with that?
Speaker 5: Yeah?
Speaker 7: You know, it's interesting. I think people are the narrative
Speaker 7: around inative retirement. A lot of people use the word crisis,
Speaker 7: and I don't know if that's the appropriate word to use.
Speaker 7: I mean, I think we've seen a really good impact
Speaker 7: of for one k's on the average person's life.
Speaker 5: But when you take a look at.
Speaker 7: Kind of where the need is, a lot of what
Speaker 7: you see is just a lack of access. And that
Speaker 7: really relates more to the small business market than it
Speaker 7: does to the larger companies. So there's been some really
Speaker 7: good developments having a kind of automated default into a
Speaker 7: retirement plan that's been really helpful for a lot of
Speaker 7: folks so they don't even have to an active choice.
Speaker 7: But not having access to this kind of capability, I
Speaker 7: think that's problematic.
Speaker 3: Maarda, we don't care.
Speaker 2: The only reason you're here is Michael McKee bleeds Denver Broncos.
Speaker 3: For you people sponsor Denver Broncos.
Speaker 2: Can you get McKeith, tickets, tickets.
Speaker 5: We'll see what we can do.
Speaker 3: Martin, thank you so much.
Speaker 2: Out of Denver and of course all of Canada with
Speaker 2: empower is stay with us. More from Bloomberg Surveillance coming
Speaker 2: up after this.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
Speaker 1: starting at seven am Eastern on Apple Corplay and Android
Speaker 1: Auto with the Bloomberg Business app. You can also listen
Speaker 1: live on Amazon Alexa from our flagship New York station.
Speaker 1: Just say Alexa Play Bloomberg eleven thirty.
Speaker 3: We are lifted by the new papers. Here's Lisa Mintaylor.
Speaker 1: You got it.
Speaker 5: It's a big day. Okay.
Speaker 9: First round of bids for Warner Brothers, Discovery expected today.
Speaker 5: Competition.
Speaker 9: They're putting all their final touches on their offers. Okay,
Speaker 9: So you have Paramount Guidance, Comcast, Netflix, all in the running, Comcast,
Speaker 9: Netflix most interested in film and TV. Paramount wants to
Speaker 9: buy the whole company.
Speaker 5: They put in.
Speaker 9: Three offers already running. His high is about twenty three
Speaker 9: fifty a share. The new thing for this story is
Speaker 9: that Bloomberg's reporting that Netflix is changing the tune a little.
Speaker 5: They told Warner.
Speaker 9: Brothers they're going to they will keep releasing their films
Speaker 9: in theaters if they win the bid, and that's something
Speaker 9: they did not want to do.
Speaker 5: So you're starting to see they.
Speaker 3: Wanted to change in the company, right Yeah, Netflix.
Speaker 6: Netflix would prefer just the studio in HBO Max, you know,
Speaker 6: the content side. They don't necessarily want the cable network business.
Speaker 6: That's not the business run. But that's okay.
Speaker 5: That that structure's fine too.
Speaker 6: I think with One Brother's Discovery, they just have to
Speaker 6: figure out what's going to maximize total value for the company.
Speaker 3: Price at the end of the days.
Speaker 6: I think it is not just price, Yeah, because you
Speaker 6: have a seller here, that's a willing seller. Warner Brothers Discovery,
Speaker 6: their board and their CEO is committed to sell the company.
Speaker 5: Now it's just about price.
Speaker 3: Can I editorialize further? Paul? Is this just about John Malone?
Speaker 3: Is he the one driving the bus? No?
Speaker 6: No, No, this is really about I would say mister
Speaker 6: Ellison and his father.
Speaker 5: I think that's the real variable here.
Speaker 6: How much equity do they want to put in and
Speaker 6: how much equity can they attract the fund their bid?
Speaker 6: Because Warner Brothers Discovery three times they did land Man
Speaker 6: that's exactly exactly.
Speaker 9: Next Okay, this one's in the Wall Street journals. When
Speaker 9: is it time to retire? That's the question. And a
Speaker 9: bit's out there and it gives ten reasons, like ten
Speaker 9: signs to lease.
Speaker 5: Take close to home, dude, I know, I know. Okay.
Speaker 5: The first one they say is if.
Speaker 9: You arrive at work and you feel a little bit numb,
Speaker 9: more than like once or twice a week, which means
Speaker 9: that you're unhappy and you're unfulfilled. Okay, okay, here's another
Speaker 9: one for you. If you lose your desire to keep
Speaker 9: up with a new tech tool.
Speaker 5: That's one hit, had one hit. Here, learn this new
Speaker 5: software thing. Okay.
Speaker 9: Wait, next week we're going to learn this one. And
Speaker 9: next month we're going to learn this one.
Speaker 8: Okay.
Speaker 9: If that kind of bothers you a little bit, okay,
Speaker 9: that's a sign.
Speaker 3: Sorry, would you get out?
Speaker 5: Oh we're not done yet. Okay.
Speaker 9: If you get the Sunday scaries, this is like if
Speaker 9: Sunday night when you're getting dinner ready and you're already
Speaker 9: starting to feel the jitters, like, oh, Monday's coming, Monday's coming,
Speaker 9: Monday's coming.
Speaker 5: Okay.
Speaker 9: If you notice and you look around the room and
Speaker 9: you say, where are all my peers? They're gone, and you're.
Speaker 5: The oldest person in the room. What then that's another sign. Okay,
Speaker 5: especially here Bloomberg Control.
Speaker 2: It's the first time I've ever seen the control room.
Speaker 8: Forward.
Speaker 5: Yeah, you guys are loving this. Huh. I got one more?
Speaker 9: Okay, okay, ready, if you notice that you're walking around
Speaker 9: the halls and your your your body aches right, your
Speaker 9: knees or ache, and all of a sudden, your joints
Speaker 9: and your walk.
Speaker 5: That started right at fifteen.
Speaker 9: Ah okay, okay.
Speaker 5: Did mister bloom Yeah, well say journal ized swear. Check
Speaker 5: it out. It's pretty interesting.
Speaker 9: Okay, here's here's here's a hint for you.
Speaker 5: Believe it or not.
Speaker 9: We know who purchased that gold toilet bowl at jeez,
Speaker 9: there's your hint.
Speaker 5: Yes, replice, believe it or not?
Speaker 1: Did?
Speaker 5: Yes? It was the twelve.
Speaker 9: They talked about it as one of the wildest acquisitions
Speaker 9: in its history. Now the company hasn't decided where they're
Speaker 9: going to use the toilet. Their intention is to display it.
Speaker 9: But here's a zinger. It's even considering whether visitors may
Speaker 9: someday be allowed to use it, so you might be
Speaker 9: able to go, give a little flush and and have
Speaker 9: at it. But that's what they're saying. So it price
Speaker 9: the toilet based on the equivalent value of gold. Replice
Speaker 9: paid that another two million of premiums to souther B's
Speaker 9: on top of it, so it was it was a big,
Speaker 9: big purchase.
Speaker 5: But now we know who bolright. See this story that
Speaker 5: keeps giving.
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