WEBVTT - Single Best Idea with Tom Keene: Geoffrey Yu & Keith Cowing

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

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<v Speaker 2>Single best idea usually six minutes long. We want to

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<v Speaker 2>fit it in as something you can listen to around

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<v Speaker 2>your other longer podcasts like David Gura and The Big Take,

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<v Speaker 2>among others, but today we could do a three hour

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<v Speaker 2>single best idea. The news flow today was absolutely extraordinary

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<v Speaker 2>in all my years of doing this, the number of stories,

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<v Speaker 2>the coverage, the video tied into our radio product was

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<v Speaker 2>just absolutely extraordinary. We're not going to touch it all today,

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<v Speaker 2>but we'll try to get there. The ECB today cut

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<v Speaker 2>their interest rate. They put out it's very different than

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<v Speaker 2>when the Fed puts out their headlines. The Feds are

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<v Speaker 2>fewer headlines, more obtuse. The ECB wants to tell you everything,

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<v Speaker 2>and they're headline dump So they told us everything, including

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<v Speaker 2>inflation and GDP forecasts and then regards to get up

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<v Speaker 2>and reinterpret it. The Euro was pretty stable, but within

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<v Speaker 2>it was inflation that refuses to come down. Maybe twenty

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<v Speaker 2>twenty six in a far more tepid growth. We spoke

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<v Speaker 2>to Jeffrey U of bny Mellon about the unique ECB calculus.

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<v Speaker 1>Animal spirits in Eurozone I think need to work off again,

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<v Speaker 1>where your financing costs are real rates. What's the other

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<v Speaker 1>side of a nominal GDP how high is your deflator?

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<v Speaker 1>So if it's going to be driven by a high

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<v Speaker 1>deflator and companies have pricing power, then they will be

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<v Speaker 1>willing to move as well. Either that or you begin

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<v Speaker 1>to reduce cost animal spirits. I think two factors. One,

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<v Speaker 1>financial conditions need to lose some more, but secondly, reliant

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<v Speaker 1>on some degree of industrial policy fiscal support. That's what

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<v Speaker 1>the US and China have right now made in China

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<v Speaker 1>twenty twenty five, the IRAA Europe is still lacking that.

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<v Speaker 2>Jeffrey, you and when you course talked to him about

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<v Speaker 2>China is well. I thought he was somewhat constructive on it,

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<v Speaker 2>and somewhat constructive on a global lift, but again he

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<v Speaker 2>was very cautious on establishing a disinflationary tendency. Over the

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<v Speaker 2>rake cuts we've seen in Sweden, Canada and in the ECB.

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<v Speaker 2>Will a FED cut next week? Nobody's talking about that.

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<v Speaker 2>I don't think I'm going to editorialize there on that

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<v Speaker 2>D Day was extraordinary today. Some good perspective there from

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<v Speaker 2>Bloomberg News in Paris. Thank you to all for the

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<v Speaker 2>covers of that. Particularly major shout out to Michael Barr,

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<v Speaker 2>who had to juggle an extraordinary amount of newsflow for those,

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<v Speaker 2>of course in New York was the bombshell by the

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<v Speaker 2>Governor of New York of ending the debate over a

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<v Speaker 2>congestion at tax. That was a shock yesterday afternoon. And

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<v Speaker 2>it's a local story, but it's got some national ramifications

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<v Speaker 2>as well. One of the stories was in engineering and space,

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<v Speaker 2>and we made a commitment to actually cover the miracle

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<v Speaker 2>of space. And I'm not going to mince words. When

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<v Speaker 2>I heard about this, say three years ago, for it,

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<v Speaker 2>SA say really, we really need to do this. I

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<v Speaker 2>mean it's you know, the guy over at Virginaire and

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<v Speaker 2>the rich guy from Amazon and this Tesla guy and

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<v Speaker 2>PayPal all that, and then Boeing got involved. They had

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<v Speaker 2>I guess a successful list finally the other day, and

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<v Speaker 2>it becomes a blur. And the one thing that's not

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<v Speaker 2>a blur is the engineering miracle that Elon Musk is

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<v Speaker 2>trying to do. And I'm not going to go into

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<v Speaker 2>it now because of the brevity of the podcast, but

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<v Speaker 2>when the thing takes off SpaceX, you look up and

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<v Speaker 2>it looks like a comic book in the nineteen fifties.

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<v Speaker 2>Because there are thirty three rocket engines among the entire

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<v Speaker 2>base engine. It's not Saturn. We need to talk to

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<v Speaker 2>an expert NASA.

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<v Speaker 3>Watch to be a nerd about it. It's asymptotic. You're

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<v Speaker 3>getting closer and closer to perfection. You never really get there,

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<v Speaker 3>but you have to get closer in order to have

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<v Speaker 3>something that's reliable. And in this case here, I mean

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<v Speaker 3>you see some of the shots before the launch, and

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<v Speaker 3>you see they have the next couple of rockets and

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<v Speaker 3>it's stacked like corn silums. I mean, they're making these

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<v Speaker 3>things like consumer products. It's not the handmade, one off

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<v Speaker 3>things that NASA does. This is designed to be launch test,

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<v Speaker 3>launch test, launch test. Every launch brings down the risk,

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<v Speaker 3>gives you more confidence than what you thought to what

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<v Speaker 3>you're doing right is oh boy, it's watching the lifeat now.

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<v Speaker 3>This is really.

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<v Speaker 2>Something beautifully explained and I think, very different from our perception.

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<v Speaker 2>And I can remember when James Mentioner wrote the book Space,

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<v Speaker 2>he was so upset at the presumed perfection of the

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<v Speaker 2>Apollo program after the terrible deaths of Apollo one, and

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<v Speaker 2>it's just it became too perfect almost with the moon

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<v Speaker 2>landings and everything you know with Apollo thirteen and getting

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<v Speaker 2>those guys back to Earth. But there was a perfection,

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<v Speaker 2>and the early space mission of Ranger, which crashed into

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<v Speaker 2>the Moon directly, was just a whole series of failures.

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<v Speaker 2>And we have forgotten that the way you engineer in

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<v Speaker 2>America is to fail along the way. And I don't know,

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<v Speaker 2>I frankly have not been briefed a This morning's flight

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<v Speaker 2>was considered success or failure, but it was certainly something

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<v Speaker 2>to cover. Thank you Keith coming of NASA, watch for

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<v Speaker 2>that perspective. Maybe tomorrow will be less newsflow. I think,

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<v Speaker 2>just maybe, I believe the president is a state dinner

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<v Speaker 2>in Paris. Lisa monteil be covering that in its entirety,

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<v Speaker 2>but far more there will be jobs day tomorrow. We'll

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<v Speaker 2>go beneath the headline data at eight thirty, as we

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<v Speaker 2>always do. Thank you, Commonwealth for your support of all

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<v Speaker 2>of our economic indicators. Look for us at Apple CarPlay.

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<v Speaker 2>Single best idea,