Russia, Ukraine Ceasefire, Three Mile Island Returns | Bloomberg Businessweek Daily 5/08/2026

0:02 THIS IS "BLOOMBERG BUSINESSWEEK DAILY," REPORTING

0:08 FROM THE MAGAZINE THAT HELPS GLOBAL LEADERS STAY AHEAD,

0:12 WITH INSIGHT ON THE PEOPLE,

0:13 COMPANIES AND TRENDS SHAPING TODAY'S COMPLEX ECONOMY.

0:15 PLUS, GLOBAL BUSINESS, FINANCE, AND TECH NEWS AS IT HAPPENS.

0:19 "BLOOMBERG BUSINESSWEEK DAILY," WITH CAROL MASSAR AND TIM STENOVEC.

0:25 LIVE ON BLOOMBERG RADIO, TELEVISION, YOUTUBE, AND BLOOMBERG ORIGINALS.

0:31 CAROL: FRIDAY, MAY EIGHTH, 2026.

0:34 CAROL MASSAR, TIM STENOVEC, LIVE AT BLOOMBERG HEADQUARTERS.

0:38 TIM: WE HAVE THREE HOURS TO DO.

0:41 CAROL: I'M GOING TO BE THE OPTIMIST.

0:45 TAKE A LOOK.

0:45 THERE IS ENTHUSIASM IN THE MARKETS.

0:47 THE S&P 500 ON TRACK FOR SIX WEEKS OF STRAIGHT GAINS.

0:55 WHAT WE KEEP HEARING FROM INVESTMENT MANAGERS, HAVE YOU LOOKED AT EARNINGS?

0:59 PRETTY SOLID.

1:00 TIM: LOOK AT WHAT BLOOMBERG SAID OF OTHER DATA.

1:04 82% OF S&P 500 COMPANIES HAVE BEEN FIRST QUARTER PROFITS,

1:07 STOCK PRICES FOLLOWING EARNINGS ARE GROWING TOO QUICKLY.

1:11 CAROL: STOCKS TRADING AT AN ALL-TIME HIGH.

1:14 OIL PRICES BACKING OFF THIS WEEK.

1:16 MORE ON THE TRADE IN A MOMENT.

1:17 ALSO, A SOCIAL MEDIA DUMP— CAN I SAY IT?

1:20 TIM: SAY WHATEVER YOU WANT.

1:22 CAROL: A SOCIAL MEDIA DUMP FROM PRESIDENT TRUMP— SEE WHAT I DID THERE?

1:28 TIM: THAT'S ALL YOU.

1:30 CAROL: IT REALLY WAS.

1:32 I WAS READING THIS MORNING, HAVING MY CUP OF COFFEE,

1:34 IT WAS ONE THING TO ANOTHER.

1:37 FROM THE OIL, TO THE STOCK MARKET RUN-UP, TO THE WAR,

1:42 TO THE UPCOMING FLAG DAY— I ONLY KNOW

1:44 THAT BECAUSE IT IS MY BROTHER BILL'S BIRTHDAY.

1:47 WE WILL GET TO JEFF MASON, WHO HAS TO KEEP TRACK OF ALL OF IT

1:49 AND FIGURE OUT FOR THE BLOOMBERG AUDIENCE WHAT IS IMPORTANT.

1:51 TIM: THE PRESIDENT IS SAID TO HAVE SIGNED OFF ON FIRING THE FDA COMMISSIONER.

2:00 ALSO, TODAY'S JOBS REPORT.

2:01 IT IS A JOBS FRIDAY.

2:03 MIKE MCKEE IS SITTING DOWN WITH THE PRESIDENT OF THE CHICAGO FED.

2:04 WE WILL HAVE AN INTERVIEW IN A FEW MINUTES.

2:07 CAROL: THE CHIEF U.S.

2:11 ECONOMIST OVER AT DEUTSCHE BANK WILL WEIGH IN, TOO.

2:14 A GREAT DUO TO WALK US THROUGH THAT ECONOMIC REPORT.

2:18 AND THAT WE ARE GOING TO GET AN AI

2:20 MAKEOVER AT THREE ISLE ISLAND, A GREAT, DEEP DIVE.

2:23 OUR BLOOMBERG BUSINESSWEEK TEAM IS SITTING DOWN ALREADY AT THE TABLE.

2:27 WE WILL TALK ALL ABOUT IT.

2:29 TIM: AND MORE OVER THE NEXT HOUR ON "BLOOMBERG BUSINESSWEEK DAILY." FIRST,

2:32 CHECK OF THE TOP BUSINESS STORIES.

2:36 CHARLIE: HAPPY FRIDAY.

2:41 YES, WE MADE IT TO 7400 ON THE S&P 500 INDEX.

2:44 THE BIG QUESTION, ARE WE GOING TO CLOSE ABOVE OR BELOW THAT NUMBER?

2:47 KEEP IT LOCKED INTO BLOOMBERG AND WE WILL TAKE YOU THROUGH THE CLOSING BELL.

2:56 7399, A GAIN OF JUST ABOUT .80%.

2:57 JOBS FRIDAY, STOCKS HITTING RECORD.

2:59 NASDAQ 100 INDEX AND ALSO THE S&P 500 ALL AT RECORDS.

3:09 INDUSTRIALS— DOW INDUSTRIALS HIGHER, THE DOW HAS BEEN ENGAGED IN LOSSES,

3:13 BUT THE S&P 500 UP BY .80%.

3:24 THE VIX AT 17, 10 YEAR, CURRENTLY AT 3.89%.

3:28 THE 30 YEAR, 4.94%.

3:34 AND WEST TEXAS INTERMEDIATE CRUDE, $95 A BARREL, UP .20%.

3:44 BARREL OF BRENT, $100.80 UP .70 PERCENT.

3:47 INTEL'S SHARES ARE SURGING ALMOST 50%.

3:49 INTEL RALLYING AFTER THE WALL STREET JOURNAL

3:50 SAID THE COMPANY REACHED A PRELIMINARY AGREEMENT

3:53 WITH APPLE TO MANUFACTURE SOME OF ITS CHIPS OR SOME OF THE CHIPS ON ITS DEVICES.

4:00 APPLE SHARES GAINING, UP BY ONE POINT 7%.

4:02 THAT INTEL BEARS REPEATING, UP NOW BY 14.9%.

4:08 CLOUDFLARE SHARES TUMBLING 22%,

4:09 AFTER THE COMPANY SAID IT WOULD CUT JOBS AND GIVE

4:12 A FORECAST FOR REVENUE BUT FELL SHORT OF ANALYST EXPECTATIONS.

4:20 RIGHT NOW, DOWN 22 POINT 6%.

4:22 AFTER EARNINGS, HEADING IN THE OTHER DIRECTION, UP BY 25.7%.

4:35 RECAPPING, S&P, RECORD, 73.98, .8%.

4:35 FOR ON-DEMAND NEWS 24 HOURS A DAY,

4:37 SUBSCRIBE TO BLOOMBERG NEWS NOW OR EVER YOU GET PODCASTS.

4:38 I'M CHARLIE PELLETT.

4:39 THAT IS OUR BLOOMBERG BUSINESS FLASH.

4:43 CAROL: CHARLIE, THANK YOU, KEEPING US UP-TO-DATE ON THE TRADE.

4:47 WE ARE GOING TO TRY TO KEEP YOU

4:48 UP-TO-DATE ON EVERYTHING COMING OUT OF PRESIDENT TRUMP,

4:49 ESPECIALLY WHEN IT COMES TO SOCIAL MEDIA POSTS.

4:53 CROSSING THE BLOOMBERG TERMINAL,

4:56 AND IN-DEPTH POST FROM THE PRESIDENT— AND PLEASE

4:59 TO ANNOUNCE THAT WILL BE A THREE-DAY CEASE-FIRE,

5:05 MIG-29, 10— MADE 9, 10 AND 11, FOR VICTORY DAY.

5:07 LIKEWISE, IN UKRAINE, BECAUSE THERE WAS ALSO A BIG,

5:11 OR THEY WERE A BIG PART OR FACTOR OF WORLD WAR II.

5:15 THE CEASE-FIRE WILL INCLUDE A SUSPENSION OF ALL KINETIC ACTIVITY,

5:18 A PRISON SWAP OF 1000 PRISONERS FROM EACH COUNTRY,

5:25 AND I VERY MUCH APPRECIATE ITS

5:25 AGREEMENTS BY PRESIDENT PUTIN AND PRESIDENT ZELENSKYY.

5:27 HOPEFULLY, IT IS THE BEGINNING OF THE END OF A VERY LONG,

5:31 DEADLY AND HARD-FOUGHT WAR.

5:32 TALKS ARE CONTINUING ON ENDING THIS MAJOR CONFLICT.

5:36 YET, AND HE KIND OF WRAPS IT UP HERE.

5:39 A LITTLE BIT OUT OF LEFT FIELD TO SAY THE LEAST.

5:44 WE'VE BEEN SHARING IMAGES BECAUSE YOU KNOW PRESIDENT TRUMP HAS BEEN VERY BUSY.

5:46 A BUNCH OF POSTS THIS MORNING ON EVERYTHING

5:49 FROM THE STRAIT OF HORMUZ AND OTHER THINGS.

5:51 TIM: THE U.S.

5:52 WAR WITH IRAN, WHAT'S GOING ON NEAR THE STRAIT OF HORMUZ,

5:56 OIL PRICES COMING DOWN THIS WEEK,

5:59 THE STOCK MARKET CONTINUING TO HIT NEW HIGHS, UPCOMING FLAG DAY.

6:00 ON JUNE 14.

6:02 IT WAS A LOT.

6:05 AND THEN THERE WAS YESTERDAY.

6:09 CAROL: PRESIDENT TRUMP HAS BRAGGED REPEATEDLY ABOUT REPAINTING

6:13 THE AMERICAN FLAG BLUE WITH A SWIMMING POOL LIKE BOTTOM.

6:16 AND THEN THERE IS THE CLOCK TICKING, A DEADLINE, THE U.S.

6:22 EXPECTS IRAN TO RESPOND TO PRESIDENT TRUMP'S

6:24 LATEST PROPOSAL TO END THE WAR IMMINENTLY.

6:26 AS SECRETARY OF STATE MARCO RUBIO ALSO GIVING A COMMENT

6:31 TO REPORT IS THAT IRAN SHOULD GET AN ANSWER TODAY.

6:33 I'M SO GLAD I DON'T HAVE TO KEEP TRACK OF IT ALL.

6:38 I'M JUST STAMMERING MY WAY THROUGH IT.

6:40 WHO DOES HAVE TO KEEP TRACK IS JEFF MASON,

6:45 OUR BLOOMBERG WHITE HOUSE CORRESPONDENT,

6:46 WASHINGTON CORRESPONDENT, FROM THE WHITE HOUSE LAWN.

6:49 THE PRESIDENT HAS BEEN BUSY.

6:49 I KNOW HE'S ALWAYS BUSY AND DROPS A LOT OF STUFF.

6:53 WHAT DO WE MAKE— IS THIS JUST BECAUSE

6:58 OF THAT CELEBRATION GOING ON OVER IN RUSSIA?

7:01 IS THAT WHAT THIS IS ABOUT OR IS THERE SOMETHING MORE SUBSTANTIAL?

7:04 JEFF: FIRST OF ALL, IT DOES SEEM LIKE YOU KEEP

7:07 TRACK OF THE TRUTH SOCIAL POSTS OVER YOUR MORNING COFFEE.

7:10 [LAUGHTER] CAROL: IT MIGHT HAVE BEEN TWO CUPS,

7:15 AND I WAS PETTING MY DOGS AT THE SAME TIME.

7:18 JEFF: THERE WOULD BE OTHER THINGS I BE READING INSTEAD OF TRUTH SOCIAL POSTS,

7:25 ALTHOUGH I'M NOT A GOOD EXAMPLE OF NOT CHECKING MY PHONE FOR THESE THINGS.

7:27 LET'S START WITH RUSSIA.

7:29 I THINK THAT IS CERTAINLY NEWSY,

7:33 IN PART BECAUSE AS YOU RIGHTLY SAID, HE CAME OUT OF LEFT FIELD.

7:35 WE HAVE NOT HEARD A LOT ABOUT RUSSIA, UKRAINE AND ANY INVOLVEMENT IN THE U.S.

7:42 OR FROM THE U.S., RATHER, IN THAT WERE RECENTLY BECAUSE IN LARGE PART,

7:47 IT HAS TAKEN SECOND FIDDLE TO THE U.S.

7:51 WAR AGAINST IRAN WITH ISRAEL, OF COURSE, SO THIS IS AN INTERESTING DEVELOPMENT.

7:53 WHETHER OR NOT— ACCORDING TO THE PRESIDENT,

7:58 IT IS JUST CONNECTED TO THAT VICTORY DAY CELEBRATION.

7:59 BUT IT IS THE FIRST TIME I CAN THINK OF IN A LONG TIME

8:07 IN THIS MULTIYEAR WAR NOW THAT BOTH SIDES HAVE AGREED TO EVEN A VERY,

8:11 VERY SHORT CEASE-FIRE.

8:12 THAT IS SIGNIFICANT.

8:13 WHO KNOWS IF IT PORTENDS MORE,

8:16 BUT IT IS AN INTERESTING PIECE OF NEWS THIS FRIDAY AFTERNOON.

8:19 TIM: THERE IS A LOT TO GET TO IN A SHORT AMOUNT OF TIME.

8:22 CAROL: PUT YOUR HAND ON THE BUZZER.

8:25 TIM: LET'S GO FROM RUSSIA ACT TO THE U.S.

8:26 RIGHT NOW BECAUSE ANOTHER HEADLINE ACROSS

8:30 THE BLOOMBERG JUST BEFORE WE WENT LIVE.

8:34 THE PRESIDENT PLANS TO FIRE THE FDA HEAD,

8:37 MARTY MEKARI, AFTER SOME TOOLS OF THE AGENCY.

8:41 WHAT CAN YOU TELL US ABOUT THE TEAM HAS REPORTED AND HOW HE CLASHED AT THE FDA?

8:46 JEFF: INTERESTING STORY, THAT.

8:50 BLOOMBERG CONFIRMED IT CAME OUT FROM THE WALL STREET JOURNAL.

8:52 HE'S BEEN UNDER PRESSURE.

8:53 THERE'S BEEN SOME REPORTING FOR A FEW DAYS THAT HE MIGHT BE ON HIS WAY OUT,

8:58 AND OUR BLOOMBERG COLLEAGUE CONFIRMED THAT THE PRESIDENT PLANS TO FIRE HIM,

9:03 ALTHOUGH IT HAS NOT HAPPENED YET.

9:04 I WOULD CAUTION EVERYONE AS SOMEONE WHO HAS COVERED PRESIDENT TRUMP A LONG TIME,

9:08 HE CAN CHANGE HIS MIND PRETTY QUICKLY.

9:11 AT THIS POINT, IT LOOKS LIKE HE'S ON HIS WAY OUT, AND HE HAS HAD CLASHES,

9:14 BOTH WITH INDUSTRY AND WITHIN THE AGENCY

9:17 THAT APPARENTLY HAVE LED TO THIS OUSTING.

9:20 TIM: OK, SO WE HAVE— AND IT WOULD BE SIGNIFICANT FOR A FEW REASONS.

9:27 ONE, A LOT LESS TUMULTUOUS THAN HIS FIRST

9:31 TERM WHEN IT COMES TO OUSTING CABINET OFFICIALS.

9:35 BUT ALSO BECAUSE IT IS ANOTHER PART OF HHS, AND IT HAS TO DO WITH, YOU KNOW,

9:39 HEALTH AND HUMAN SERVICES, AND THE ALLIANCE HE MADE WITH ROBERT F.

9:45 KENNEDY, JR..

9:47 JEFF: INDEED.

9:48 YOU ARE RIGHT TO CONTRAST THE FIRINGS IN THE SECOND TERM WITH THE FIRST TERM.

9:51 THERE HAVE BEEN SIGNIFICANTLY LESS.

9:53 ALTHOUGH, THEY ARE BEGINNING TO SPEED UP, AND I HAVE BEEN TOLD— RIGHT,

10:01 THE FIRST YEAR WAS VERY— THEY WERE ALMOST NONE,

10:05 EXCEPT THE NATIONAL SECURITY ADVISOR WHO ENDED UP GOING TO THE UN.

10:12 THE LAST FEW MONTHS, PAM BONDI,

10:14 A FORMER SECRETARY KRISTI NOEM, AND NOW THIS GENTLEMAN, AS WELL.

10:19 SIGNIFICANT BECAUSE IT IS AT HHS,

10:22 LOTS OF INTRIGUE AT THAT APARTMENT WITH RFK JR.

10:25 LEADING SECRETARY AND THE CLASHES THERE, AS WELL.

10:30 CAROL: ANOTHER DEADLINE LOOMING FOR IRAN AT THIS POINT.

10:32 THE PRESIDENT SAYS IF IT DOESN'T HAPPEN, A TAX RESUME.

10:39 MARCO RUBIO ALSO EXPECTING TO GET SOMETHING.

10:41 INDEED, WE ARE ANTICIPATING TO HEAR FROM IRAN.

10:44 COULD WE GET ANOTHER EXTENSION OF SORT POSSIBLY BY THE WHITE

10:47 HOUSE QUESTION MARK WHAT INTEL ARE WE GETTING, IF ANY AT ALL?

10:50 JEFF: IT'S HARD TO SAY.

10:52 THE SIGNALS FROM THE WHITE HOUSE OR THE EXPECT TO GET A RESPONSE.

10:56 THE IRANIANS HAVE NOT BEEN CLEAR ON WHEN THAT RESPONSE WOULD COME.

10:58 THERE ARE TALKS GOING ON, AND THE PRESIDENT

11:04 SAID ON THURSDAY WHICH WAS YESTERDAY, RIGHT?

11:05 CAROL: YEAH.

11:09 JEFF: THE PREVIOUS 24 HOURS OF TALKS HAVE BEEN SUCCESSFUL.

11:15 HE ALSO SAID OR HAS SAID THIS WEEK THAT HE WOULD

11:16 ESCALATE ATTACKS ON IRAN IF THEY DID NOT AGREE TO A DEAL,

11:22 SO YOU'VE HEARD ME SAY THIS A MILLION TIMES,

11:24 MIXED MESSAGES FROM THE WHITE HOUSE AND FROM THE PRESIDENT

11:26 ABOUT THE LATEST ON THE WAR, BUT THE LATEST, LATEST, AS WE UNDERSTAND IT,

11:32 IRAN IS EXPECTED TO COME BACK WITH SOME KIND OF A RESPONSE.

11:37 THE QUESTION IS WHETHER OR NOT THEY AGREED

11:39 TO THE DEMANDS THAT PRESIDENT TRUMP HAS MADE,

11:42 AND WHETHER OR NOT PRESIDENT TRUMP ENDS UP BEING SATISFIED OR HIS PEOPLE

11:47 END UP SATISFIED WITH ESSENTIALLY TABLING THE STATUS OF NUCLEAR PROGRAM IN IRAN,

11:52 WHICH, THE PRESIDENT HAS SAID WAS THE MAIN REASON

11:54 FOR GOING INTO THIS WAR IN THE FIRST PLACE.

11:58 TIM: WOULD THE U.S.

12:01 TABLE THAT?

12:02 HAVE A HEFTY PRESENCE IN THE REGION REMAIN?

12:06 UNTIL— THAT IS WHAT I'M TRYING TO UNDERSTAND.

12:10 JEFF: SURE, AND I THINK THAT'S A GOOD QUESTION.

12:14 IF WE TAKE PAST IS PROLOGUE THAT PRESIDENT

12:18 TRUMP HAS LEFT A HEAVY FORCE IN THE REGION,

12:19 EVEN WHILE THIS CEASE-FIRE HAS BEEN GOING ON, SO

12:24 IF THE END UP DECIDING TO, FIRST OF ALL,

12:27 AGREE ON OPENING THE STRAIT OF HORMUZ AND EXTENDING THE CEASE-FIRE FOR 30

12:33 DAYS OR HOWEVER LONG TO WORK ON NEGOTIATIONS ABOUT THE NUCLEAR PROGRAM,

12:39 I MEAN, I CAN'T ANSWER THAT BECAUSE I DON'T KNOW WHAT THEY WERE DUE.

12:43 WHAT THEY'VE DONE THE LAST SEVERAL WEEKS IS

12:46 INDICATIVE OF THAT AND LIKELY THEY WOULD REMAIN,

12:49 AND THAT MEANS REALLY THAT EVEN WITH A CEASE-FIRE, WAR ITSELF IS NOT OVER.

12:54 THE PRESIDENT HAS SAID IT IS OVER.

12:56 SECRETARY RUBIO SAID EARLIER THIS WEEK THAT THAT PART IS OVER.

13:01 I THINK THERE ARE CONGRESSIONAL REASONS FOR THEM USING THAT LANGUAGE.

13:06 THAT IS NOT EXACTLY BUTTRESSED BY THE FACT U.S.

13:10 FORCES REMAINED THERE AND ESSENTIALLY ON HIGH ALERT.

13:13 CAROL: WE'VE ALL SEEN THIS STROLL SEEN AROUND THE WORLD,

13:18 THE DRIVING OF THE MOTORCADE THROUGH THE REFLECTING POOL, THE MEMORIAL IN D.C.

13:27 I KNOW PRESIDENT TRUMP IS DOING A LOT OF WORK.

13:29 I ASSUME SOME OF THIS WAS PLANNED AHEAD OF OUR 200 50TH BIRTHDAY CELEBRATION.

13:33 HAVING SAID THAT, BETWEEN THE BALLROOM AND OTHER THINGS,

13:38 WHO IS PAYING FOR ALL OF THIS?

13:40 JEFF: IT DEPENDS WHICH PROJECT YOU WERE TALKING ABOUT.

13:44 WITH REGARD TO THE BALLROOM,

13:46 THE PRESIDENT INSISTS THAT WILL BE FUNDED BY PRIVATE DONORS, INCLUDING HIMSELF.

13:51 ALTHOUGH THERE IS A MOVE ON CAPITOL HILL RIGHT NOW

13:54 BY REPUBLICANS TO INSERT OR INCLUDE PUBLIC MONEY IN THAT.

13:57 IN FACT, A LOT MORE PUBLIC MONEY THAN THE $400 MILLION

14:03 THAT THE PRESIDENT HAS SAID HE IS RAISING FOR THAT PROJECT.

14:10 FOR SOME OF THE OTHER PUBLIC PROJECTS IN D.C.,

14:12 THEY ARE BEING FUNDED BY PUBLIC MONEY.

14:15 AS FAR AS I KNOW, THE REFLECTION POND— DID I SAY THAT RIGHT?

14:23 CAROL: YEAH.

14:24 JEFF: IS GETTING FUNDING FROM PUBLIC COFFERS.

14:29 THE KENNEDY CENTER, IRONICALLY,

14:30 GIVEN HOW PERSONAL OF AN INTEREST PURSUANT— PRESIDENT

14:33 TRUMP HAS TAKEN AND THAT PERFORMING ARTS CENTER.

14:36 THE TWO YEARS OF RENOVATIONS IT IS GOING THROUGH IS FROM PUBLIC FUNDS.

14:42 IT DEPENDS ON WHICH PART WE ARE TALKING ABOUT.

14:44 THE BALLROOM, THOUGH,

14:44 AND YOU ARE RIGHT TO LEAD WITH THAT, IS THE PRESIDENT'S PET PROJECT.

14:48 OF COURSE, IT IS TIED UP A LITTLE BIT IN THE COURSE RIGHT NOW,

14:52 BUT IT IS SOMETHING HE WOULD LIKE TO GET DONE BEFORE HE LEAVES.

14:56 CAROL: IT FEELS LIKE IT WORKS ITS WAY

14:57 INTO A LOT OF EVENTS OUT OF THE OVAL OFFICE.

15:00 FOR SURE.

15:02 THANK YOU, JEFF MASON, BLOOMBERG NEWS,

15:05 WASHINGTON WHITE HOUSE CORRESPONDENT FROM THE WHITE HOUSE LAWN.

15:07 TIM: PUBLIC FUNDS, ANOTHER WAY OF SAYING— CAROL: OUR MONEY?

15:11 TIM: YOU AND WE ARE PAYING FOR IT.

15:15 CAROL: I GUESS I COULD USE THE BALLROOM FOR MY NEXT FAMILY PARTY?

15:17 SO FUN.

15:19 TIM: YOU MENTIONED ONE OF THE STORIES ON BLOOMBERG,

15:25 ABOUT THE AI MAKEOVER, ALL IN OUR BLOOMBERG BUSINESSWEEK EXCLUSIVE.

15:30 LARGELY FUELED BY THE DATA CENTER BUILD UP.

15:32 YEAH, IT IS HAPPENING NOT TOO FAR FROM HERE.

15:48 CAROL: IT IS THAT THREE MILE ISLAND, GO BACK TO MARCH 28, 1979,

15:49 36 SECONDS AFTER 4:00 A.M.,

15:50 WATER PUMP SPEEDING STEAM GENERATORS OF ONE OF TWO REACTOR SHUTDOWN,

15:51 KICKING OFF A SERIES OF MECHANICAL FAILURES AND HUMAN ERRORS THAT WOULD

15:53 CASCADE INTO A THE ACCIDENT WAS FRONT PAGE NEWS AROUND THE WORLD.

15:56 PARTIALLY SHUT DOWN AT THE TIME.

16:00 FULLY SHUT DOWN AND 2019 FOR ECONOMIC REASONS.

16:03 THE TIMES HAVE CERTAINLY CHANGED.

16:05 TIM: THAT IS THE GIST OF WILL WADE'S STORY AND JOINS US HERE IN THE STUDIO.

16:14 LOTS OF DETAIL ABOUT THE REBIRTH THE NUCLEAR.

16:19 I WANT TO START WITH 1979 AND THE NUCLEAR DISASTER IN THE U.S.

16:24 I WAS SURPRISED TO LEARN EVEN PEOPLE WHO HAD BEEN

16:27 EXPOSED IN THE AREA TO WHAT WAS RELEASED AS A RESULT

16:31 OF THAT, ACCORDING TO A STUDY REALLY ONLY RECEIVED

16:35 AS MUCH RADIATION AS WHAT HAPPENED IN A CHEST X-RAY.

16:41 WADE: IT WAS A HUGE PUBLIC RELATIONS DISASTER FOR THE NUCLEAR INDUSTRY.

16:50 THAT LED TO ALL KINDS OF HEIGHTENED OVERSIGHT,

16:51 NEW SAFETY POLICIES, LOTS OF SCRUTINY.

16:55 IT SLOWED DOWN THE NUCLEAR INDUSTRY IN THE U.S.

17:00 IT WAS JUSTIFIABLY A DISASTER.

17:01 PEOPLE WERE TERRIFIED.

17:02 THOUSANDS OF PEOPLE FLED THE AREA.

17:07 WHEN THEY EVENTUALLY WENT AND STUDIED IT AND MEASURED IT,

17:10 THE AMOUNT OF RADIATION RELEASED WAS NOT DEADLY.

17:14 IT WAS NOT HUGE.

17:16 JUST THE IDEA OF RADIATION IS TERRIFYING.

17:20 YOU CAN'T SEE IT, CAN'T SMELL IT, CAN'T FEEL IT AND YOU DON'T KNOW IS HAPPENING.

17:25 IT'S SCARY.

17:26 CAROL: HERE WE ARE IN 2026 AND I FEEL LIKE IN THE LAST

17:29 COUPLE OF YEARS WE HAVE DONE NOTHING— I THINK ABOUT THE EVENT WE DID.

17:33 WE DID A PANEL ON THE STAGE AND WHAT THEY WANTED TO TALK ABOUT.

17:36 TIM: 2022.

17:37 CAROL: NUCLEAR.

17:39 IT CAUGHT US BY SURPRISE.

17:44 IS THE WHOLE DIFFERENCE JUST THE BIG TECH COMMUNITY,

17:44 THE AI CRAZE AND DEMAND FOR POWER?

17:48 WILL: PRETTY MUCH.

17:51 FOR A WHILE NUCLEAR WAS REALLY KIND OF WANING,

17:54 MOSTLY BECAUSE IT EXPENSES— IT IS EXPENSIVE.

17:56 THEY TAKE A LONG TIME TO BUILD.

17:59 THERE ARE TONS OF SCRUTINY.

18:00 THEY ARE EXPENSIVE TO BUILD AND OPERATE.

18:09 UNTIL ABOUT 2019, 2020, 2022, THEY WERE JUST SHUTTING DOWN FOR ECONOMIC REASONS.

18:12 THEY WERE MORE EXPENSIVE.

18:15 YOU COULD GET CHEAP NATURAL GAS, CHEAP WIND AND SOLAR.

18:19 NOW WE NEED ELECTRICITY.

18:22 IT IS BIG TECH.

18:25 IT IS AI.

18:26 THEY JUST NEED SO MUCH ELECTRICITY.

18:28 THEY WANT AS FAST AS THEY CAN GET IT.

18:30 THEY WANT AS MUCH AS THEY CAN GET.

18:33 NUCLEAR CAN DELIVER A LOT OF POWER.

18:35 TIM: YOU POINT OUT THIS IS NOT JUST ABOUT THE UNITED STATES.

18:39 THERE ARE COUNTRIES THAT MOVED AWAY FROM NUCLEAR IN EUROPE,

18:42 JAPAN AFTER FUKUSHIMA.

18:42 NOW THEY HAVE CHANGED THEIR MINDS.

18:44 WILL: THEY HAVE NOT ALL CHANGED THEIR MINDS.

18:47 GERMANY— I HAVE BEEN TRACKING THIS FOR A LONG TIME.

18:52 THERE HAS BEEN A HUGE REVERSAL.

18:55 PEOPLE ARE STARTING TO EMBRACE NUCLEAR.

18:58 NOT EVERYONE IN THE WORLD BUT IT IS REALLY GETTING A LOT OF ACCEPTANCE.

19:00 I SHOULD POINT OUT THAT THERE IS THREE MILE ISLAND, CHERNOBYL, FUKUSHIMA.

19:10 THAT'S IT.

19:12 THERE HAVE BEEN THREE ACCIDENTS.

19:14 TIM: HOW DOES THAT COMPARE TO--?

19:17 CAROL: CHERNOBYL WAS REALLY BAD.

19:20 TIM: FUKUSHIMA WAS BAD.

19:21 WILL: FUKUSHIMA WAS REALLY BAD BUT NOBODY DIED FROM RADIATION.

19:25 THEY DIE FROM THE FLOODING.

19:28 CAROL: BUT CHERNOBYL, THAT WHOLE AREA JUST NOTHING.

19:32 WILL: THAT'S TRUE.

19:36 CAROL: WHEN IT GOES BAD— WILL: IT GOES BAD BIG,

19:38 WHICH IS WHAT IT IS SO HEAVILY REGULATED.

19:41 WE LOOKED AT DEATH STATISTICS.

19:43 LIVING ON THIS PLANET WILL KILL YOU.

19:46 IF YOU LIVE NEXT TO A COAL POWER PLANT,

19:49 YOU ARE PROBABLY MORE LIKELY TO GET ASTHMA.

19:52 NATURAL GAS HAS THINGS.

19:54 EVERYTHING IS DANGEROUS.

19:56 TIM: HOW DO YOU QUANTIFY THAT DANGER AND THE DANGERS

19:58 FROM BURNING FOSSIL FUELS TO REDUCE ELECTRICITY TO USING NUCLEAR ENERGY?

20:00 WILL: THERE HAVE BEEN SOME STUDIES AND THEY DO—

20:07 COAL HAS MORE DEATHS PER TERAWATT HOUR POWER PRODUCED.

20:09 NATURAL GAS HAS MORE DEATHS.

20:15 NUCLEAR POWER, EVEN INCLUDING THE DEATHS FROM CHERNOBYL, AND LOWER ON THE SCALE.

20:18 CAROL: I'M GOING TO RANDOMLY SAY THIS BUT I'M ASSUMING TO GET

20:23 INTO A CAR AND YOU ARE PROBABLY MORE LIKELY TO GET IN AN ACCIDENT.

20:27 WILL: THAT'S WHAT I MEAN.

20:29 THIS PLANET IS DANGEROUS FOR US.

20:30 CAROL: MICROSOFT, THE VAST POWER NEEDS.

20:33 IT'S BRINGING TOGETHER TWO TRANSFORMATIVE AND RISKY TECHNOLOGIES.

20:40 I GET NERVOUS WHEN THERE IS SUCH A MAN AND A RUSH

20:42 FOR SOMETHING THAT I WONDER IF PEOPLE GET SLOPPY IN THE DEVELOPMENT PROCESS.

20:46 EVERYBODY HAS GOT TO BE CAREFUL BECAUSE

20:51 ONE PROBABLE SHUT DOWN THE INDUSTRY AGAIN PROBABLY.

20:53 WILL: A LEGITIMATE QUESTION.

20:55 CAROL: WAS RISKY?

20:57 WHAT IS RISKY?

21:00 WILL: THAT'S A GOOD QUESTION.

21:04 LIKE YOU SAID, CHERNOBYL WAS INDEED A CATASTROPHE.

21:08 WITH NUCLEAR— I HAVE BEEN TO SEVERAL NUCLEAR PLANTS.

21:14 EVERYWHERE I GO THERE IS JUST SO CAREFULLY MONITORED AND SCREENED.

21:15 RADIATION DOES HAVE THE POTENTIAL TO BE DANGEROUS.

21:20 YOU HAVE TO BE CAREFUL.

21:24 TIM: WHAT I NOTICED IN YOUR PIECE WAS THAT THERE WAS THIS IDEA THAT ELECTRICITY

21:30 DEMAND HAD KIND OF PEAKED BECAUSE WE

21:31 HAD BECOME MORE EFFICIENT WITH ENERGY USAGE.

21:35 LED BULBS WERE ACTUALLY A PART OF THAT PRE-2019.

21:40 THEN THIS HAPPENED AND BY THIS I MEET THE DEMAND FOR AI.

21:45 I'M WONDERING ABOUT THE POSSIBILITY OF OVERBUILDING HERE.

21:51 WHAT IF IT TURNS OUT THAT ALL THESE TECHNOLOGIES DO BECOME MORE EFFICIENT?

21:53 THAT IS THE BIG BOTTLENECK RIGHT NOW.

21:54 YOU HAVE TO THINK THAT IS WHAT EVERYONE IS WORKING TOWARDS,

21:58 MAKING THIS MORE EFFICIENT.

22:00 WHAT IF WE SHOOT TOO FAR?

22:02 WILL: THEN WE SPENT A LOT OF MONEY.

22:05 THAT'S THE QUESTION WE HAVE BEEN TALKING ABOUT.

22:08 POWER DEMAND IN THE U.S.

22:08 HAS BEEN FLAT FOR LIKE 20 SOMETHING YEARS.

22:10 NOW IT IS GOING UP LIKE THE PROJECTIONS ARE

22:16 INSANE ON HOW MUCH POWER WE ARE GOING TO NEED.

22:19 TIM: PROJECTIONS ARE PROJECTIONS THOUGH.

22:23 WILL: HERE IN THE SECOND QUARTER 2026 IT IS NOT CRAZY HIGHER THAN A YEAR AGO,

22:29 BUT THE FORECAST FOR 2030 AND 2035 ARE.

22:32 YEAH, AI IS BRAND-NEW.

22:33 THIS IS A TREND I HAVE BEEN FOLLOWING FOR ABOUT TWO YEARS.

22:36 IF THEY COME UP FOR A WAY TO MAKE IT MORE ENERGY ALL OF A SUDDEN,

22:42 THAT IS A CONCERN AND PEOPLE ARE LIKE

22:44 ALLOCATING BILLIONS AND BILLIONS OF DOLLARS FOR POWER PLANTS.

22:47 IF THEY OVERSPEND, WELL, WE WILL SEE IT IN THE STOCK PRICE.

22:53 CAROL: THE NEXT GENERATION.

22:55 WE TALKED ABOUT THE SMALL MODULAR REACTORS.

22:58 THE NEXT GENERATION TECHNOLOGY.

22:59 WE ARE DOING A LOT OF EXISTING FACILITIES GETTING UP AND RUNNING.

23:08 HOW LONG IS THAT GOING TO BE MORE EFFICIENT, MORE SAFER?

23:10 WILL: THE TIMELINE ON SMR'S IS I WILL GO WITH EARLY 20 30'S.

23:16 MAYBE A COUPLE BEFORE 2030.

23:19 THERE ARE DOZENS OF COMPANIES THAT ARE WORKING

23:20 ON IT AND MAYBE HALF A DOZEN COMPANIES I COULD NAME THAT ARE MAKING REALLY SOLID

23:25 PROGRESS AND THEY ARE NOT THAT FAR AWAY.

23:27 IT WILL TAKE SOME TIME.

23:27 THE FIRST ONES ARE NOT GOING TO BE CHEAP.

23:30 CAROL: WE HAVE TO BE PATIENT.

23:36 IT FITS INTO THIS BIG NARRATIVE THAT WE KEEP TALKING ABOUT EVERY DAY.

23:38 THE SPEND ON BUILDING OF DATA CENTERS.

23:39 FOLKS ARE WORRIED ABOUT THE SUPPLY CHAIN

23:44 AND THE ENERGY THERE TO ACTUALLY FUEL THEM.

23:48 WE WILL WAIT.

23:50 THANK YOU.

23:51 APPRECIATE IT.

23:53 TIM: BLOOMBERG.COM/BIGRAKE.

23:54 MORE ON TODAY'S JOB VIEWS FROM MATT LOSE EDDIE --MATT LUZZETTI AT DEUTSCHE BANK.

24:00 FLASH.

24:00 CAROL: LET'S GET TO THE MONTHLY JOBS REPORT.

24:02 IT CAME OUT AT 830, WALL STREET TIME BUT IT WAS ONE THAT CAUGHT OUR ATTENTION.

24:07 CHARLIE HAS BEEN POINTING OUT THERE THE DATE THEY

24:08 ADDED MORE JOBS AND EXPECTED FOR THE SECOND MONTH.

24:13 UNEMPLOYMENT RATE HELD STEADY,

24:14 INDICATING THE LABOR MARKET IS HOLDING UP DESPITE RISING ENERGY COSTS.

24:20 TIM: BACK WITH US IS MATT LUZZETTI.

24:25 ALL IS GOOD?

24:27 MATT: I THINK THE HEADLINE FEATURES ARE ALL POSITIVE.

24:30 YOU HAD STRENGTHENING PAYROLL GAINS.

24:35 TICK UP ON AN UNGROUNDED BASIS.

24:36 I THINK WE HAVE MOVED THROUGH THE WEAKNESS.

24:37 WE SEE PAYROLL GAINS THAT ARE PICKING UP.

24:39 PAYROLL GAINS THAT ARE BROADENING OUT.

24:42 IT IS NO LONGER SIMPLY ABOUT THE HEALTH CARE SECTOR.

24:48 ALL MEASURES OF THE LABOR MARKET HAVE BEEN STABLE FOR THE PAST YEAR OR SO.

24:53 FROM THE FED'S PERSPECTIVE THIS IS

24:54 CONFIRMATION THE STABILITY AND THE LABOR MARKET.

24:59 CAROL: WE GOT DATA SHOWING SENTIMENT FELL

25:01 TO A FRESH RECORD LOW ON THE IMPACT OF INFLATION.

25:04 I KNOW THIS IS NOT NECESSARILY A SCIENTIFIC

25:08 SAMPLE BUT WE TALK IN THE MAKE A ROOM.

25:10 IT A CROSS-SECTION OF GUESTS.

25:13 THE FOLKS WHO.

25:14 WORK THERE SO MANY PEOPLE ARE TALKING ABOUT THE HIGH COST OF THINGS.

25:19 HOW DO YOU CROSS THE LABOR MARKET THAT SEEMS OK WITH PEOPLE FEELING SO LOUSY?

25:24 MATT: THIS IS A DICHOTOMY WE HAVE HAD FOR A LONG TIME.

25:29 YOU HAVE HAD CONSUMER SENTIMENT WHICH IS MUCH WEAKER THAN WE

25:34 WOULD ANTICIPATE FOR THE LABOR MARKET AND CONSUMER SPENDING PATTERNS WE SEE.

25:37 CONSUMER SPENDING HAS BEEN STRONGER

25:39 THE PAST SEVERAL YEARS DESPITE THE SENTIMENT.

25:42 IT REFLECTS A FEW THINGS.

25:44 EVEN THOUGH INFLATION HAS COME DOWN A LITTLE BIT, PRICES ARE STILL ELEVATED.

25:47 PRICES ARE ELEVATED ON THE ITEMS WE CARE MOST ABOUT.

25:51 GAS, ENERGY, FOOD PRICES THAT REMAIN ELEVATED.

25:54 THINGS THAT ARE VERY VISUAL AND FRONT AND CENTER FOR MOST HOUSEHOLDS.

26:00 YOU HAVE AFFORDABILITY ISSUES ON THINGS LIKE HOUSING.

26:04 MORTGAGE RATES ARE STILL ABOVE WHERE THEY WERE BEFORE THE PANDEMIC.

26:09 HOME PRICES ARE ELEVATED.

26:10 THE TYPICAL PATHWAY TOWARDS WELL FOR THE U.S.

26:11 CONSUMER HAS BEEN LOCKED OUT FOR A NUMBER OF HOUSEHOLDS.

26:15 TIM: IT DOES SEEM LIKE EVERYTHING YOU'RE

26:18 ARE SAYING APART FROM PERHAPS GAS PRICES SEEMS BAKED INTO THIS ECONOMY IN A WAY

26:22 THAT IS A POLITICAL CHALLENGE FOR THOSE IN POWER,

26:27 BUT ALSO THE CHALLENGE FOR US TO GET PAST IT AS A SOCIETY.

26:33 WE ARE TALKING STRUCTURAL REFORMS AND HOUSES

26:34 BUILT EVERYWHERE FOR HOUSING PRICES TO COME DOWN.

26:36 WHAT DOES THAT DO TO THIS ECONOMY?

26:41 MATT: YOU NEED POLICIES THAT WILL COME FORWARD AND HELP

26:44 ON THE SUPPLY SIDE RATHER THAN THE DEMAND SIDE.

26:47 TIM: OFTEN TIMES IT IS AT THE LOCAL LEVEL.

26:51 MATT: A HUGE CHALLENGE.

26:52 IF YOU HAVE AN ECONOMY WHERE THE FED HAS CUT RATES IN THE PAST TWO YEARS.

26:56 FINANCIAL CONDITIONS ARE CREDIBLY— INCREDIBLY ACCOMMODATIVE.

27:02 FISCAL POLICY IS ADDING TO THE ECONOMY.

27:03 WE HAVE THE TAX CUTS WORKING THROUGH THE ECONOMY.

27:06 THE BACKDROP IS NOT WHAT YOU EXPECT INFLATION WILL MODERATE VERY MUCH AT ALL.

27:10 THAT IS THE BACKDROP WE HAVE BEEN WORKING WITH FOR THE PAST SIX YEARS.

27:17 AS LONG AS YOU ARE IN A WORLD

27:21 WHERE FINANCIAL CONDITIONS ARE INCREDIBLY ACCOMMODATIVE,

27:24 FISCAL' POLICY IS SUPPORTED.

27:25 I EXPECT THE CONCERNS AND WORRIES ABOUT AFFORDABILITY PROCESS.

27:28 CAROL: WE ARE THINKING ABOUT TAX CUTS, NOT FED RATE CUTS.

27:32 WE ARE LOOKING AT PRICING CONTINUING TO SUGGEST

27:36 THE FED WILL KEEP RATES STEADY THIS YEAR.

27:37 IS THE FED LIKELY TO REMAIN ON HOLD FOR THE REST OF THE YEAR?

27:42 MATT: WE SEE THE FED ON HOLD INDEFINITELY.

27:44 WE THINK POLICY IS ESSENTIALLY AT NEUTRAL AT THIS POINT.

27:50 THERE'S AN ARGUMENT TO BE MADE THAT THE FED

27:54 IS A LITTLE ACCOMMODATIVE IN THEIR POLICY-SETTING.

27:56 IT IS SOMETHING THE PRESIDENT OF THE ST.

27:59 LOUIS— ST.

28:01 LOUIS FED RAISED EARLIER THIS WEEK.

28:03 WITH INFLATION AT 3%, THE LABOR MARKET STABLE AROUND THE FED TARGET,

28:06 THERE'S LITTLE REASON FOR THE FED TO BE CUTTING RATES ANYTIME SOON.

28:08 TIM: THE PRESIDENT WANTS TO SEE LOWER RATES.

28:13 CAROL: HE DOES?

28:16 TIM: WHAT HAPPENS IF KEVIN WARSH DOES NOT CUT RATES?

28:22 MATT: WHAT WOULD HAPPEN IF HE DID CUT RATES?

28:24 WITH THE BACKDROP WE HAVE THAT WOULD

28:30 NOT SOLVE ISSUES AROUND AFFORDABILITY OR INTEREST RATES.

28:34 THIS IS A MARKET NOW THAT REQUIRES THAT THE FED IS

28:37 ON HOLD TO KEEP LONG AND YIELDS IN INFLATION EXPECTATIONS AND CHECK.

28:39 IF THE FED CUT RATES AND APPROPRIATE INFLATION IS TOO HIGH,

28:47 GROWTH IS STRONG, THE LABOR MARKET ACELA,

28:49 10-YEAR YIELDS WOULD BE HIGHER THAN TODAY.

28:49 AFFORDABILITY ISSUES WOULD BE WORSEN TODAY.

28:51 THAT IS THE PATH WITH THE FED CANNOT AFFORD TO TAKE.

28:55 CAROL: WILL HE BE LOOKING AT THE MANDATE, THINKING ABOUT THE ROLE OF THE U.S.

28:59 CENTRAL BANK GLOBALLY?

29:02 MATT: YEAH.

29:04 I'M NOT SURE ABOUT THE GLOBAL ROLE.

29:06 WE HAVE NOT HEARD TOO MUCH FROM HIM.

29:09 CAROL: I MEAN THAT FROM THE PERSPECTIVE THAT EVERYBODY LOOKS AT THE U.S.

29:13 CENTRAL BANK AS KIND OF THE GOLDSTAR.

29:17 MATT: ABSOLUTELY.

29:18 WE HEARD FROM HIM IN HIS TESTIMONY WAS A FOCUS

29:23 ON— THERE IS VERY LITTLE FOCUS ON THE MANDATE,

29:28 WHICH IS WHAT YOU THINK THEY WOULD BE LOOKING AT TO CUT RATES.

29:32 HE WILL HAVE A FOCUS ON THE BALANCE SHEET.

29:34 HE HAS ARGUED FOR REDUCING THE SIZE OF THE BALANCE SHEET

29:35 AND THAT COULD ALLOW FOR RATE CUTS BUT THAT WILL NOT HAPPEN ANYTIME SOON.

29:38 NEAR TERM, I THINK WE WILL BE FOCUSED

29:42 ON WHEN HE DOES FROM A CENTRAL BANK COMMUNICATIONS PERSPECTIVE.

29:44 HE HAS ARGUED AGAINST THE DOT PLOTS, DATA DEPENDENCY, AS WELL, FOR GUIDANCE.

29:51 THAT IS A LITTLE MORE OF AN OPEN QUESTION,

29:52 WITH THE INDICATIONS LOOK LIKE AS WE GO AHEAD.

29:55 CAROL: THE REST OF THE YEAR WILL BE INTERESTING, NO DOUBT.

29:59 GREAT VOICE ON TODAY'S NEWS AND ECONOMIC NEWS IN THE FED POLICY.

30:04 MATTHEW LUZZETTI CHIEF U.S.

30:05 ECONOMIST AT DEUTSCHE BANK.

30:07 TIM: NOW TO THE WEST COAST, OUR POLICY CORRESPONDENT MICHAEL MCKEE,

30:14 CATCHING UP ON THE SIDELINES OF THE HOOVER

30:17 INSTITUTION MONETARY POLICY CONFERENCE AT STANFORD UNIVERSITY,

30:20 WHERE HE IS SITTING DOWN WITH THE PRESIDENT OF THE CHICAGO FED AUSTIN GOOLSBEE.

30:27 MIKE: THANK YOU, AND THANK YOU FOR TAKING TIME OUT FROM THE CONFERENCE HERE.

30:32 OBVIOUSLY, WE ALL GOT UP EARLY TO WATCH

30:34 THE JOBS REPORT COME OUT AT 5:30 PACIFIC TIME.

30:40 DID YOU BASICALLY WALK AWAY FROM THAT THINKING,

30:45 OK, THAT IS ALL FOR WORRY LIST RIGHT NOW?

30:46 AUSTIN: FOR THE MONTH.

30:49 IT FELT LIKE A STABLE MONTH,

30:53 THE UNEMPLOYMENT RATE ITSELF HOLDING KIND OF STABLE,

30:58 DECENTLY POSITIVE ON THE PAYROLL EMPLOYMENT GROWTH,

30:59 GIVEN THE CONTEXT OF WHERE WE HAVE BEEN.

31:04 SO, YOU NEVER WANT TO MAKE TOO MUCH OF ONE MONTH,

31:07 IT WASN'T A WORRY POINT, FOR SURE.

31:10 MIKE: WE'VE HAD DECENT JOB CREATION THAT IS BASICALLY STABLE.

31:15 HIS INFLATION THE MAIN DANGER RIGHT NOW?

31:24 AUSTIN: AS YOU KNOW,

31:29 I'M OPTIMISTIC FUNDAMENTALLY PRETTY FORGET PROGRESS ON INFLATION AND WE

31:34 SHOW A PATH ON HER WAY TO 2% INFLATION, I'M OPTIMISTIC THAT RATES CAN GO DOWN.

31:43 WE JUST HAVE NOT BEEN HAVING THAT QUITE FOR SOME

31:45 TIME AND THAT MAKES ME MORE CONCERNED I'M LESS OPTIMISTIC.

31:52 WE HAVE BEEN ABOVE THE 2% FED INFLATION TARGET FOR FIVE YEARS,

31:56 AND WE WERE AT LEAST MAKING PROGRESS FOR MUCH OF THAT TIME.

32:00 LAST YEAR, WE STOP MAKING PROGRESS AND THE HOPE

32:10 WAS TEMPORARY AS TARIFFS INCREASE WENT AWAY, THAT WE WOULD ADD OIL SHOCK,

32:18 ON TOP OF THINGS BEFORE THE OTHER WENT AWAY,

32:21 SO WE ARE NOT REALLY SURE IF OR WHEN THAT PART IS GOING TO GO AWAY.

32:26 I THINK FOR ME, IT MAKES INFLATION,

32:28 THAT IS THE TOPIC OF THE MOMENT, WE HAVE TO GET SOME CLARITY.

32:32 MIKE: WHERE DO YOU STAND ON THE BIAS DEBATE?

32:35 YOU DO NOT JOIN IN WITH VOTERS.

32:39 YOU COULD NOT TO DISSENT,

32:40 BUT DO YOU SUPPORT OR ARE YOU SYMPATHETIC TO THAT IDEA?

32:46 AUSTIN: BEFORE I EVER GOT TO THE FED,

32:50 I WAS ALWAYS A LITTLE PUBLICLY SKEPTICAL ABOUT

32:53 THE VALUE/APPROPRIATENESS OF USING FORWARD GUIDANCE TO THE INLAND.

32:56 SAYING THINGS THAT THE COMMITTEE DOES NOT THINK IT IS GOING TO DO X

33:04 PAYING FOR SOME NUMBER OF MONTHS OR COMMITTING

33:08 ITSELF TO ACTIONS WELL IN THE FUTURE.

33:13 I THINK THAT CAN BE UNWISE TO USE AT MOMENTS

33:16 WHERE WE ARE NOT AT THE ZERO LOWER BOUNDARY,

33:19 WHERE THAT KIND OF BEHAVIORS REALLY STARTED WE ARE AT THE ZERO LEVEL BOUND,

33:24 YOU CANNOT CHANGE THE RATES.

33:25 NOW, WE ARE NOT IN THAT CIRCUMSTANCE.

33:34 I USUALLY DON'T GET TOO WORKED UP ABOUT

33:38 THE EXACT WORDING OF THE STATEMENT OF THIS KIND

33:40 OF FORM BECAUSE WE DON'T KNOW WHAT THE CONDITIONS

33:42 ARE THAT THE COMMITTEE IS GOING TO BE FACING,

33:45 EVEN AT THE NEXT MEETING, MUCH LESS MULTIPLE MEETINGS IN THE FUTURE.

33:52 SO, LET'S JUST TAKE A STEP BACK AND TAKE A DEEP BREATH TO THE EXTENT

33:59 THAT INCOMING CHAIR WARSH SAYS HE WANTS

34:03 US TO THINK ABOUT COMMUNICATIONS IN THE STATEMENT.

34:09 HE HAS EXPRESSED SOME— NOT REGRETS,

34:11 BUT RESERVATIONS ABOUT THE USE OF FORWARD GUIDANCE.

34:16 I'M PRETTY SYMPATHETIC.

34:18 MIKE: AS I DECISION BY MOST PEOPLE TO LEAVE THE BIAS STATEMENT AND AS IT WAS,

34:23 BASICALLY NOT TYING THE HANDS OF THE INCOMING CHAIR— AUSTAN:

34:27 I DON'T KNOW, YOU KNOW THE RULES.

34:29 I CAN SPEAK ONLY FROM WHAT I THINK,

34:33 NOT WHAT ANYBODY ELSE THINKS OR WHAT IS BEHIND THEIR VOTES.

34:39 I DON'T SEE HOW YOU CAN LOOK AT THE CURRENT SITUATION— AT LEAST, TO ME,

34:46 VIEW THAT THE ONLY THING THAT IS ON THE TABLE CONCEIVABLY ARE RATE CUTS.

34:54 INFLATION IS A BIT ABOVE THE TARGET FOR FIVE YEARS, STALLED OUT,

34:58 PROGRESS STALLED OUT LAST YEAR IN THE LAST THREE OR FOUR MONTHS.

35:01 YOU HAVE SEEN IT DETERIORATING.

35:04 INFLATION RATE IS RISING,

35:06 THE NEW DATA COMING IN ARE WORSE THAN THE MONTHS BEFORE,

35:10 AND YOU ARE SEEING IT IN CATEGORIES WHERE IT IS NOT SUPPOSED

35:13 TO BE IF IT WAS JUST TARIFFS OR OIL PRICES LIKE CORE SERVICES INFLATION.

35:20 I'M STILL HOPEFUL THAT THAT IS GOING TO PROVE TEMPORARY,

35:27 BUT IF WE START TO SEE A DETERIORATION OF INFLATION

35:32 EXPECTATIONS AND THE UNEMPLOYMENT RATE IN THE JOB MARKET LOOK STABLE,

35:39 I THINK FOR ALL CREDIBILITY OF THE FED,

35:41 WE HAVE TO BE PAYING ATTENTION TO THE INFLATION RATE WHEN IT IS DETERIORATING.

35:45 MIKE: LET ME ASK YOU ABOUT WHAT YOU THINK OF EXPECTATIONS RIGHT NOW.

35:51 JAY POWELL NOTED WE HAD THIS SERIES OF SURPRISE SHOCKS,

35:56 AND PEOPLE WHO WERE MAY BE GETTING USED

35:59 TO THE IDEA THAT INFLATION IS NORMALLY THIS— AUSTAN: THAT'S BAD.

36:03 WE START TO SEE THAT IN THE DATA,

36:08 AS YOU KNOW, WE HAVE A LONG HISTORY IN THE U.S.

36:11 AND OTHER COUNTRIES, THAT IF PEOPLE BEGIN ASSUMING THAT INFLATION IS

36:15 GOING TO CONTINUE AT HIGHER THAN DESIRED RATES,

36:18 IT BECOMES A LOT HARDER TO GET RID OF THE INFLATION,

36:22 AND IT PUTS THE CENTRAL BANK AND A LOT TOUGHER SPOT.

36:27 MIKE: DO YOU THINK THAT IS WHAT PEOPLE ARE THINKING THESE DAYS?

36:29 AUSTAN: I HOPE NOT, BUT IN HISTORY, WHEN THE PRICE OF OIL SPECIFICALLY,

36:38 PRICE OF GASOLINE, VERY PUBLIC PRICE, WHEN IT GOES UP,

36:42 THERE IS A LOT OF CONSUMER LEVEL EXPECTATION THAT RESPONDS

36:48 TO THE PRICE OF GASOLINE THAT KIND OF OUTSIDES AWAY.

36:51 AS SOON AS THE WAR BEGAN AND THE PRICE OF OIL SURGED,

36:56 I SAID I WOULD NOT BE SURPRISED IF

36:59 WE SAW A SIGNIFICANT DETERIORATION OF CONSUMER CONFIDENCE,

37:02 WHICH WE THEN DID SEE, AND WE BETTER KEEP AN EYE ON THE INFLATION

37:08 EXPECTATIONS BECAUSE A LOT OF TIMES— MIKE: LOWEST MICHIGAN NUMBERS EVER TODAY.

37:11 IF YOU RAISE RATES, IT IS NOT GOING TO OPEN THE STRAIT OF HORMUZ.

37:19 AUSTAN: AGREED.

37:20 MIKE: SO IS THAT A VIABLE STRATEGY AT THIS POINT?

37:25 OR ARE YOU RISKING DEMAND DESTRUCTION?

37:26 AUSTAN: YOU ARE RISKING DEMAND DESTRUCTION.

37:33 YOU ARE JUST RESTATING/REDISCOVERING WHAT MAKES STAGFLATIONARY SHOCKS AMONG

37:38 THE WORST THINGS THAT CENTRAL BANK HAS TO DEAL

37:42 WITH BECAUSE IF YOU FACE A NEGATIVE SUPPLY SHOCK

37:46 THAT DESTROYS EMPLOYMENT AND DRIVES UP PRICES AT THE SAME TIME,

37:49 RAISING THE RATES DOES NOT SOLVE YOUR PROBLEM.

37:50 CUTTING THE RATES DOES NOT SOLVE YOUR PROBLEM.

37:53 AND LEAVING YOUR RATES WHERE THEY ARE JUST SOLVE YOUR PROBLEM.

37:57 SO THE MONETARY FRAMEWORK THAT WE PASSED UNANIMOUSLY, IN IT,

38:03 WE THOUGHT ABOUT WHAT WOULD WE DO IF WE GET

38:07 SHOCKS THAT ARE HATING BOTH SIDES OF THE SAME TIME,

38:10 AND WE SAID— HITTING BOTH SIDES OF THE SAME TIME, AND WE SAID, REASONABLY,

38:13 WE WILL LOOK AT WHICH SIDE IS DEVIATING MORE AND HOW LONG WE THINK IT WILL LAST.

38:19 I STILL THINK THAT IS THE REASONABLE WAY TO THINK ABOUT IT.

38:23 I WOULD EMPHASIZE, AS I SAY,

38:25 THE JOB MARKET HAS BEEN STABLE FOR A YEAR, A YEAR AND A HALF.

38:30 THE PART THAT IS DETERIORATING AND WHAT HAS MOVED ME FROM OPTIMISTIC

38:35 ABOUT RATE CUTS ARE LESS OPTIMISTIC IS THAT INFLATION ALONE IS GETTING WORSE.

38:39 IT IS NOT EVEN STALLED OUT IN PROGRESS.

38:41 IT IS GETTING WORSE.

38:42 WHEREAS THE JOB MARKET HAS BEEN STABLE.

38:50 I THINK BY THE CRITERIA WE OUTLINED IN THE FRAMEWORK REVIEW,

38:55 IT BEHOOVES US TO HAVE TO TAKE A SERIOUS

38:56 LOOK AT WHAT IS HAPPENING ON THE INFLATION SIDE.

39:00 MIKE: WE ASSUME A WEEK FROM TODAY THERE WILL BE A NEW CHAIR OF THE FED,

39:07 AND AWAY FROM POLICY AND TERMS OF POLICYMAKING,

39:08 THERE ARE CHANGES HE WANTS TO MAKE.

39:10 LET ME RUN THROUGH A FEW AND SEE WHAT YOU ARE THINKING.

39:12 ONE THING HE IS CONCERNED ABOUT IS THE DOT PLOT,

39:16 THE S&P, AND THE FACT EVERYBODY FOCUSES ON THE MEDIAN.

39:19 WOULD YOU BE IN FAVOR OF ELIMINATING OR CHANGING EITHER?

39:20 AUSTAN: AUSTAN:— AUSTAN: I COULD BE.

39:27 I WOULD BE INTERESTED TO SEE— PRESUMING HE IS CONFIRMED AS CHAIRMAN,

39:30 TO SEE WHAT HE PROPOSES.

39:35 I'VE WRITTEN IN PAST YEARS ABOUT SOME DISSATISFACTIONS

39:40 THAT I'VE HAD ABOUT THE RELEASE OF THE DOT PLOTS AND THE WAYS IT DOES NOT HELP

39:46 TO IDENTIFY WITH THE REACTION FUNCTION IS OF THE COMMITTEE.

39:53 I THINK THAT KEVIN WARSH IS GOING TO COME

39:56 IN WITH A LOT OF NEW IDEAS ON MONETARY POLICY, ON BALANCE SHEET, COMMUNICATION.

39:59 I THINK IT IS GOOD.

40:01 LET'S HAVE SOME NEW IDEAS AND THINK THOSE THROUGH.

40:03 MIKE: THE BALANCE SHEET IS THE BIG QUESTION.

40:07 HE WANTS TO BRING IT DOWN.

40:11 THERE ARE A COUPLE OF WAYS TO DO IT.

40:12 DO YOU THINK THE BALANCE SHEET NEEDS TO BE SMALLER?

40:16 IF SO, HOW WOULD YOU GO ABOUT IT?

40:21 AUSTAN: I DON'T KNOW ABOUT IT NEEDS TO BE SMALLER.

40:25 CAN BE SMALLER.

40:26 DEPENDS IN LARGE MEASURE HOW YOU CONDUCT MONETARY POLICY, AS YOU KNOW.

40:34 AND THE OLDER DAYS, UP TO 2008,

40:36 WE CONDUCTED IT MOSTLY THROUGH OPEN MARKET OPERATIONS.

40:39 NOW WE HAVE SHIFTED TO, AS WE CALL IT, THE AMPLE REGIME— AMPLE RESERVES,

40:47 THAT'S A DIFFERENT WAY OF DOING POLICY AND IT

40:49 CORRESPONDS WITH A BIGGER BALANCE SHEET THAN THE OLD WAY.

40:52 YOU CAN DO ANY NUMBER OF WAYS.

40:55 LIKE I SAY, IT IS NOT MY POSITION TO WEIGH IN AND SAY,

41:00 I WANT US TO DO IT A, B, C DIRECTION.

41:04 I'M INTERESTED IN SEEING WHAT THE NEW CHAIR HAS IN MIND AND EVALUATING THAT.

41:11 MIKE: IT IS GOING TO BE A FUN NEW VOYAGE, HE WILL TAKE OVER MAYBE NEXT FRIDAY.

41:14 WE WILL HAVE YOU BACK MONDAY TO TALK ABOUT HOW EVERYTHING HAS CHANGED.

41:18 HOPEFULLY WE WILL HAVE YOU BACK, AUSTAN GOOLSBEE,

41:20 THE PRESIDENT OF THE CHICAGO FEDERAL RESERVE.

41:23 BACK TO YOU.

41:24 CAROL: MICHAEL MCKEE, THANK YOU,

41:27 WITH THE PRESIDENT OF THE CHICAGO FED, AUSTAN GOOLSBEE.

41:32 THEY ARE RIGHT, JUST WAIT 12 HOURS AT 24 HOURS

41:34 AND EVERYTHING CAN CHANGE IN TERMS OF SENTIMENT OR GEOPOLITICS.

41:38 THERE IS SO MUCH GOING ON.

41:40 TIM: HEADLINES COMING FROM THAT INTERVIEW,

41:42 THE CHICAGO FED PRESIDENT IS LESS OPTIMISTIC AND SYMPATHETIC

41:45 WITH KEVIN WARSH'S VIEW WHEN IT COMES TO EVENT COMMUNICATIONS.

41:48 CAROL: HE ALSO SAID RATE CUTS ARE NOT THE ONLY THING ON THE TABLE,

41:51 AND HE'S NOT SURE THE BALANCE SHEET NEEDS TO BE SMALLER.

41:54 THERE IS GOING TO BE A LOT COMING AT THE FEDERAL RESERVE,

41:58 AS THEY CONTINUED TO NAVIGATE STUFF COMING OUT OF THE WHITE HOUSE,

42:03 ACROSS SEAS IN TERMS OF GEOPOLITICS,

42:05 AND I KINDA FEEL LIKE OUR NEXT GUEST IS GOING TO DIG INTO THIS.

42:09 WE HAVE ONE OF THE CO-CEOS OF THE GLOBAL WEALTH MANAGEMENT FIRM

42:16 VO BUT WEN ARE GOING TO DIG INTO THE MACRO INVESTMENT ENVIRONMENT.

42:19 TOBEL WHAT DO YOU THINK OF NON-US ENTITIES?

42:20 TIM: AS WE MENTIONED, U.S.

42:22 STOCKS HITTING A RECORD, THANKS TO SIGNS OF LABOR MARKET STRENGTH,

42:27 BOLSTERING SPECULATION THAT THE WORLD'S LARGEST ECONOMY REMAINS

42:30 RESILIENT IN THE FACE OF AN ENERGY SHOCK, TRIGGERED BY THE WAR.

42:32 KEEP IN MIND, U.S.

42:35 STOCKS ARE ON TRACK FOR A FOURTH YEAR GAINS, ACCORDING TO A STRATEGIST.

42:41 THEY CONTINUE TO SEE THE MOMENTUM.

42:49 TIM: JOINING US CHRISTEL RENDU DE LINT, A PROXIMALLY 200 BILLION SWISS FRANCS,

42:56 JOINING US HERE IN THE BLOOMBERG BUSINESSWEEK STUDIO.

43:00 DO YOU SEE THE MOMENTUM CONTINUING?

43:03 WHAT I SEE IS THAT THE MACRO IS RESILIENT AND THERE'S A REASON

43:04 FOR THE STOCKS ARE TURNED DOWN FOR AS LONG AS WE HAVE SUCH A RESILIENT ECONOMY.

43:10 WE HAVE, OF COURSE, AI IS SUPERPOWERFUL.

43:12 I’'M STARTING TO THINK IT FEELS A LITTLE MORE LIKE QE,

43:19 ON CONDITIONAL LIQUIDITY COMING TO THE MARKET ALL THE TIME.

43:24 CAROL: IT CAN CAUSE TOO MUCH, LIQUIDITY CAN CAUSE PROBLEMS.

43:27 CHRISTEL: EXACTLY, THAT'S THE QUESTION WE WOULD LIKE TO HAVE TO OUR CLIENTS,

43:32 DON'T GET LOGGED INTO IT.

43:33 TIM: THAT BRINGS OF QUESTIONS ABOUT THE INCREASED PRODUCTIVITY,

43:37 AND THAT HAS TO DO WITH FEWER PEOPLE, AND IF THERE ARE FEWER PEOPLE NEEDED,

43:41 THEN FEWER PEOPLE ARE WORKING AT IT,

43:42 IT OPENS UP THE QUESTION ABOUT WHAT THAT ECONOMY ENDS UP LOOKING LIKE.

43:46 CHRISTEL: ABSOLUTELY.

43:47 HONESTLY, THIS IS REALLY SO FAR OUT.

43:50 WE ARE GOING TO TAKE IT ONE AFTER THE OTHER.

43:55 FOR NOW WHAT WE ARE SEEING,

43:56 YOU CANNOT DISENTANGLE THE NORMAL ECONOMY WITH WHAT IS ALREADY COMING FROM AI,

43:59 BUT YOU SEE UNEMPLOYMENT RATES ARE STILL LOW, THE GROWTH IS STILL STRONG.

44:06 CAROL: ARE YOU TALKING UNEMPLOYMENT U.S.?

44:08 CHRISTEL: YOU HAVE TO PUT AGAINST THE AI TREND THAT WILL ALLEGEDLY TAKE ON JOBS.

44:17 THE DEMOGRAPHICS IN MOST PARTS OF THE DEVELOPED WORLD ARE PRETTY NEGATIVE.

44:22 I WILL WAIT AND SEE A LITTLE BIT ON THIS ONE.

44:25 CAROL: YOU ARE A GLOBAL WEALTH MANAGEMENT FIRM BASED IN SWITZERLAND.

44:28 I AM CURIOUS.

44:31 LOOKING AT THE MSCI WORLD INDEX OF ABOUT 7% YEAR TO DATE, EX U.S.

44:43 ABOUT— UP.

44:46 EMERGING MARKETS ARE UP 22% YEAR-TO-DATE.

44:50 YOU CAN PRESUMABLY LOOK AT THE WORLD.

44:53 WHICH PARTS DO YOU LIKE THE MOST?

44:56 CHRISTEL: DIVERSIFICATION.

44:58 THAT IS THE CONVERSATION TO BE HAD.

45:01 CAROL: WHAT IS DIVERSIFICATION FROM A GLOBAL PERSPECTIVE?

45:05 CHRISTEL: THE CONVERSATION I WANT WITH A CLIENT IS ABOUT THREE C'S.

45:11 CONCENTRATION, CURRENCY, CUSTODY.

45:12 WE HAVE ONE OF THE LARGEST MARKETS IN THE WORLD COME THE U.S.

45:16 EQUITY MARKET WHICH HAS A THIRD OF ITS VALUATION AND SEVEN STOCKS.

45:21 THAT'S A HISTORICAL HIGH.

45:23 THAT TREND IS SO POWERFUL THAT YOU

45:28 ACTUALLY FIND IT RIPPLING AND OTHER ASSET CLASSES.

45:31 CORPORATE DEBT FROM TECH FIRMS NOW.

45:33 WHEN I LEFT MANAGING FIXED INCOME THERE WAS NO DEBT

45:36 FROM TECH FIRMS AND OTHER IS ACTUALLY QUITE A SUBSTANTIAL AMOUNT.

45:39 CAROL: IS THAT A PROBLEM?

45:40 THE DEBT MARKETS SEEM TO LIKE IT.

45:42 I DO GET NERVOUS.

45:43 THEY HAVE DEEP POCKETS, LOTS OF MONEY.

45:46 CHRISTEL: IT'S NOT A PROBLEM PER SE.

45:53 AS AN INVESTOR YOU KNOW WHAT TO HAVE ALL OF YOUR EGGS IN ONE THEME.

45:55 PICK YOUR THEME.

46:00 IF I PICKED THE EQUITY PART FOR THE AI, IT'S A GROWTH STORY.

46:03 TIM: OVERWEIGHT OR UNDERWEIGHT U.S.?

46:08 CHRISTEL: NEUTRAL.

46:10 CAN I SAY THAT?

46:14 NEUTRAL, TO BE HONEST.

46:14 I WOULD NOT BE UNDERWEIGHT.

46:16 IT IS A NEUTRAL POSITIVE.

46:18 CAROL: I KNOW WHAT YOU SAID ABOUT

46:21 MARKET CONCENTRATION BUT YOU LIKE THE AI PLATE.

46:25 ARE YOU SKEWED TOWARDS THOSE BIG TECH NAMES?

46:29 CHRISTEL: THIS IS NOT— THAT IS A VERY HARD CALL TO BE MADE.

46:34 WHAT I SKEWED TOWARD IS THE MACRO THEME IS REAL.

46:37 YOU DON'T WANT TO OVERCONCENTRATED AROUND THAT.

46:41 THIS IS THE CONVERSATION WE ARE HAVING WITH THE CLIENTS.

46:44 WHERE DO YOU EXPRESS THAT VIEW?

46:46 WHAT OTHER ASSET CLASSES OR GEOGRAPHIES AND CURRENCIES DO YOU WANT TO HOLD?

46:55 ULTIMATELY, THE KEY CALL FOR YOUR WEALTH

46:56 IS HOW YOU ALLOCATE CROSS ASSET GEOGRAPHIES, ETC.

46:58 IT IS THE MOST UNDERWEIGHTED CALL.

47:00 TIM: EVEN WITH THE ENERGY PRICES IN THE PAST FEW DAYS,

47:07 OIL IS STILL UP MORE THAN 65% THIS YEAR.

47:10 COULD THAT DERAIL WHAT YOU VIEW AS A RESILIENT MACRO ENVIRONMENT?

47:12 CHRISTEL: IF IT LASTS LONG ENOUGH.

47:18 I DON'T KNOW HOW LONG IS TOO LONG.

47:20 TIM: WE WILL KNOW WHEN IT IS.

47:23 CAROL: IN EUROPE AND ASIA TO THE CONFLICT THAT WAS STARTED BY THE U.S.

47:27 AND ISRAEL, THEY ARE FEELING THE PAIN MORE THAN WE ARE.

47:33 CHRISTEL: YES.

47:35 THAT IS TRUE IN TERMS OF THE ENERGY DEPENDENCY.

47:39 THE CONSUMER HEADLINES THAT MIGHT BE STRONGER IN THE U.S.

47:43 BECAUSE OF THE PRICE AT THE TANK WHICH IS ALWAYS VERY SENSITIVE IN THE U.S..

47:47 YOU ARE RIGHT.

47:48 THE LONGER A LAST, THE MORE IT WILL HAVE AN IMPACT ON THE ECONOMY.

47:52 CAROL: IS THERE ANOTHER MARKET YOU LIKE?

47:54 WE HAVE TALKED A LOT ABOUT DEFENSE SPENDING

47:57 THAT SEEMS TO BE INCREASING THROUGHOUT EUROPE AND OTHER PLACES.

48:01 IT IS CLEAR YOU LIKE THE U.S.

48:02 MARKET, BUT YOU ARE KIND OF NEUTRAL.

48:04 CHRISTEL: I LIKE THE FIXED INCOME AS WELL.

48:12 I DID NOT BUY THE ARGUMENT IN 2022 THAT THIS IS THE END OF 60-40.

48:13 CAROL: IT FEELS LIKE IT NEVER GOES AWAY.

48:16 CHRISTEL: IT'S NICE FRIEND RIDER THAT RATES CAN GO UP.

48:21 EVERYTHING GOES DOWN AT THE SAME TIME.

48:23 IT DOES NOT MEAN YOU WANT TO DO WITHOUT.

48:24 I LIKE, CAN YOU DO SOMETHING WITH THE VOLATILITY IN THE MARKET?

48:32 I THINK YOU CAN.

48:33 CAROL: I THINK WE HAVE TO RUN.

48:35 I HOPE YOU ARE BACK SOON.

48:36 WE WOULD LOVE TO CONTINUE THIS.

48:39 A REALLY GOOD CONVERSATION.

48:42 CHRISTEL RENDU DE LINT IS CO-CEO

48:43 AT A GLOBAL WEALTH MANAGEMENT BASED IN SWITZERLAND.

48:47 SHE IS SPINNING HER TIME IN NEW YORK THIS WEEKEND IS HEDINGHAM SOON.

48:52 TIM: WE ARE A LITTLE OVER AN HOUR AWAY FROM THE CLOSE ON THIS FRIDAY AFTERNOON.

48:57 THE DOW WAS DOWN BY ABOUT .1%.

49:01 S&P 500 UP 5.7%.

49:03 MORE THAN 54 POINTS— BY .7%.

49:08 CAROL: ANOTHER WEEK OF GAINS FOR THE S&P 500.

49:13 THIS IS BLOOMBERG.

49:16 THIS IS "BLOOMBERG BUSINESSWEEK DAILY" WITH CAROL MASSAR

49:20 AND TIM STENOVEC ON BLOOMBERG RADIO AND TELEVISION.

49:21 TIM: WE DON'T NEED ONE IF YOU HAVE THAT SONG.

49:27 IF WE HAVE RECORD ON THIS.

49:31 CAROL: THAT WAS SO LAME.

49:33 TIM: WE ARE GOLDEN.

49:35 CAROL: THERE MUST BE SOMETHING.

49:40 TIM: THAT IS NOT REALLY IN MY— CAROL: FM STEREO.

49:44 TIM: YOU ARE DOING ENOUGH FOR BOTH OF US.

49:48 CAROL: WHAT A WEEK.

49:49 WE ARE WRAPPING UP ON THIS JOBS FRIDAY.

49:51 AN HOUR TO GO IN TERMS OF THE TRADING SESSION.

49:54 IN TERMS OF THE EQUITY MARKETS,

49:56 WE ARE LOOKING AT— WE HAVE SEEN ANOTHER RECORD ON WALL STREET ON THIS FRIDAY.

50:00 WE CONTINUE TO SEE.

50:01 WE ARE COMING UP HER BEST LEVELS OF THE SESSION.

50:05 UP ABOUT 53 POINTS.

50:08 MAN, THE TECH TRADE TODAY, THE NASDAQ 100 IS UP ALMOST 600 POINTS.

50:12 UP MORE THAN 2%.

50:17 YOU LOOK AT SEMICONDUCTORS, TIM, THEY ARE JUST FLYING.

50:22 ALMOST EVERY OF THE 30 NAMES IN THE STOCKS ARE HIGHER TODAY.

50:25 TIM: MORE THAN 5% RIGHT NOW.

50:31 ONLY THREE NAMES LOWER.

50:34 MICROCHIP TECHNOLOGY CUT TEAM SMC— TSMC.

50:39 YOU HAVE INTEL HIGHER BY 14%.

50:42 AMD UP BY WAS 10%.

50:45 CAROL: IT'S UP ABOUT 60% SINCE THE END OF MARCH, THE SOX.

50:51 YEAH.

50:51 I WISH I HAD ALL THAT MONEY AND SEMICONDUCTORS.

50:56 I DON'T.

50:57 TIM: I'M TIM STENOVEC ALONG WITH CAROL MASSAR.

50:59 LET'S LOOK AT STOCKS ON THE MOVE TODAY.

51:04 BLOOMBERG'S DANITSA TSEKOVA IS IN THE STUDIO WITH US.

51:07 DANITSA: LET'S TALK ABOUT HIGHFLYING STOCKS.

51:11 DELL.

51:12 NOT QUITE THE FUNDAMENTAL YOU ARE EXPECTING

51:14 FOR THE STOCK IS UP MORE THAN 12% TODAY.

51:19 THE YEAR-TO-DATE IS 100%.

51:22 TODAY WE HAVE SEEN SOME MOVEMENTS BASED ON THE NEWS COMING

51:26 FROM THE WHITE HOUSE THAT THE PRESIDENT SAID GO OUT AND BUY DELL.

51:29 HE HAS SAID THAT A COUPLE OF TIMES.

51:32 TIM: HE ACTUALLY WENT— SHARES WENT HIGHER BECAUSE THE PRESIDENT SAID THAT.

51:40 DANITSA: THERE WAS A BIG BOOST.

51:43 HE SAID IT AGAIN IN FEBRUARY.

51:46 TIM: THIS IS BECAUSE OF THE DONATIONS THAT THE DELL FAMILY HAS MADE.

51:50 THE PHILANTHROPY.

51:53 DANITSA: THEY ARE ONE OF THE BIG BACKERS OF THE TRUMPS.

52:02 THE COMPANY IS ON A TEAR.

52:08 WE ARE SEEING A BIG DRIVER FOR AI SERVERS, DATA CENTERS, INFRASTRUCTURE.

52:10 WE SAW THE LAST EARNINGS REPORT WAS REALLY IMPRESSIVE.

52:15 THEY EXCEEDED ESTIMATES.

52:18 THEY HAVE ALL THOSE DEALS WITH COREWEAVE AND SCALE.

52:21 IT'S FUNNY WE ARE SEEING A SPIKE OF THAT HEADLINE.

52:24 TIM: I'M GOING BACK TO WHAT YOU SAID IN FEBRUARY.

52:27 FEBRUARY 19, THE PRESIDENT SAID GO BUY A DELL COMPUTER.

52:31 TODAY HE SAID GO OUT AND BUY DELL COMPUTERS.

52:33 HE SAID ALMOST THE EXACT SAME THING.

52:36 DANITSA: HE LOVES THE DELL COMPUTER.

52:39 TIM: DUDE, YOU ARE GETTING A DELL.

52:42 CAROL: YOU ARE GETTING A RALLY TODAY.

52:45 TIM: ANYWHERE WITH AIRBNB TODAY?

52:49 DANITSA: WE ARE SEEING A BOOST THEIR BUT MUCH SMALLER ONE.

52:52 THE STOCK WAS UP ABOUT 2%.

52:56 THE TICKER IS ABNB.

52:58 A NICE POSITIVE OUTLOOK WHICH WE HAVE NOT SEEN.

53:03 WE SAW AIRLINES BOOKING ALL THE COMPANIES.

53:06 WHAT WE ARE SEEING FROM AIRBNB AS THEY

53:10 ACTUALLY BOOSTED THE FORECAST ON THEIR BOOKING.

53:13 WE TALKED ABOUT THE WORLD CUP.

53:15 THEY HAVE SEEN 100,000 NEW APARTMENTS BEING LISTED.

53:18 ALL THOSE NEW FANCY THINGS.

53:20 AIRBNB MARKETS WHERE THEY ARE NOT ALLOWED.

53:24 THEY FOUND THEIR NICHE.

53:26 THEY OFFER DELIVERIES.

53:29 THEY OFFER TOURS.

53:31 THEY HAVE EXPANDED A LOT BEYOND WHAT IS A SHORT-TERM RENTAL.

53:33 THAT IS PAYING OFF.

53:35 THEY ARE UP 5% YEAR-TO-DATE.

53:38 TIM: INTERESTING SEEING THE GUIDANCE THERE.

53:40 EXPEDIA SAID TEPID GROSS BOOKINGS FOR THE SECOND QUARTER.

53:44 ANALYST POINTED TO MACROECONOMIC PRESSURES ON THE GUIDANCE.

53:46 A LITTLE DIFFERENCE BETWEEN EXPEDIA AND AIRBNB.

53:50 DANITSA: A LITTLE BIT OF A GAP BUT DEFINITELY SOME

53:55 REALLY— THEY ARE SEEING STRONG MARKETS IN THE U.S., CANADA, MEXICO.

54:01 CAROL: DRAFTKINGS.

54:03 THE STOCK WAS UP ALMOST 8% TODAY.

54:04 IT'S HIGHER BUT NOT AS MUCH AS IT WAS EARLIER.

54:10 DANITSA: WE SAW THE GAINS FADE BUT THIS IS REALLY FOR DRAFTKINGS.

54:11 THEY HAVE BEEN UNDER A LOT OF PRESSURE.

54:14 DOES THE COMPETITION BETWEEN SPORTS BOOK AND PREDICTION MARKETS.

54:17 SPORTS BOOKS HAVE BEEN ON THE LOSING END.

54:19 DRAFTKINGS IS DOWN 25% THIS YEAR.

54:21 WHAT WE SEE TODAY IS SOME GOOD OUTLOOK.

54:24 THE COMPANY REPORTED REVENUE THAT ROSE 70% AND BEAT ESTIMATES.

54:29 WE SAW A PRETTY GOOD REACTION.

54:35 ADJUSTED EARNINGS, TAXES, APPRECIATION ROSE 64%.

54:38 A LOT OF KEY NUMBERS THE INVESTORS ARE LOOKING AT LOOK GOOD.

54:40 THEY ARE BOOSTING THEIR INVESTMENT AND PREDICTION MARKETS.

54:43 IT IS ALL MELDING INTO ONE.

54:50 WE SAW FAN DO AN DRAFTKINGS TRYING TO GET INTO PRODUCTION MARKETS— FAN DUAL.

54:56 THEY ARE FALLING BEHIND THE MAIN PLAYERS.

54:59 THEY'RE TRYING TO ENTER THE SPACE BUT THEY ARE VERY NEW ENTRANTS.

55:07 THEY ARE INVESTING A LOT OF MONEY.

55:11 CAROL: GOOD STUFF.

55:12 GREAT STOCKS MOVING RIGHT IN TODAY'S SESSION.

55:13 THANK YOU SO MUCH.

55:16 DANITSA TSEKOVA HERE IN STUDIO.

55:20 CHECK OUT HER STOCK MEMBERS PODCASTS.

55:23 FIND IT WHERE EVER YOU GET YOUR PODCASTS.