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00:00THE FUTURE OF THE STOCK RALLY GETS HAZIER AS THE ECONOMIC PICTURE BECOMES CLEARER. FROM STUDIO TO ABENBERG HEADQUARTERS IN NEW YORK, I AM ROMAINE BOSTICK. KATIE: AND I AM KATIE GREIFELD. HERE IS WHERE WE STAND WITH ONE HOUR TO GO. SLIGHT GAINS WHEN IT COMES TO THE S & P 500. BOTH THE S & P 500 AND THE NASDAQ 100 HIGHER BY ABOUT .2% RIGHT NOW WHICH IS MORE INTERESTING THAN THE SMALL MOVE WOULD SUGGEST BECAUSE YOU HAVE APPLE SHARES LOWER ON THE DAY OF THEIR BIG EVENT. I WANTED TO HIGHLIGHT THE SMALL CAPS. BLS REVISIONS CLEARLY FRONT AND CENTER TODAY, COMING IN MUCH BIGGER THAN EXPECTED, THOSE DOWNWARD REVISIONS SO THAT IS HITTING THE SMALL CAPS BECAUSE THIS IS AGAIN MORE PROOF THAT THEY'RE NOT ONLY IS THE LABOR MARKET WEAKENING BUT WEAKER THAN WE EXPECTED. FOR SOME REASON, THE RESPONSE HAS BEEN TO SELL BONDS. THE TWO-YEAR UP HERE, HIGHER BY ABOUT FIVE BASIS POINTS RIGHT NOW AND OF COURSE WE KNOW WE HAVE BEEN RALLYING HARD WHEN IT COMES TO THE BOND MARKET BUT STILL, AN INTERESTING REACTION FUNCTION HERE. ROMAINE: KATIE GREIFELD, AS WE DO IT EVERY DAY, CONNECTING ALL ASPECTS OF ALL ASSETS INCLUDING IN COMMODITIES. WE ARE SINGLED LIFTED TO ANOTHER RECORD HIGH WHILE LITHIUM PRICES PUSHED EVER SO LOWER AS CHINA RESTARTS ITS KEY PRODUCTION SOURCE OF THE METAL HAD BIG SWINGS IN OIL PRICES, TOO. THIS AFTER ISRAEL CONDUCTING AN UNPRECEDENTED UNILATERAL, UNPROVOKED MISSILE STRIKE AGAINST THE QATARI CAPITAL OF DELHI, A STRIKE NETANYAHU SAYS WAS INTENDED TO TARGET HAMAS. AS GEOPOLITICS BUBBLE BACK TO THE SURFACE, SO TOO, OUR CONCERNS ABOUT THE U.S. LABOR MARKET. THE BENCHMARKS ARE SHOWING THE PACE OF HIRING IN THE 12 MONTHS THROUGH MARCH WAS ABOUT HALF THAT OF THE PREVIOUSLY REPORTED NUMBERS. EVIDENCE THAT THE JOB MARKET HAS ACTUALLY BEEN WEAKER FOR LONGER THAN POLICY MAKERS HAD EASILY BEEN ABLE TO DISCERN. > > WE ARE HAVING A MORE PRONOUNCED COOLING OF LABOR SUPPLY AND DEMAND THAN WE HAD EXPECTED. ROMAINE: WE ARE GOING TO TALK ABOUT THAT STORY AND THE OTHER BIG STORY OF THE DAY. APPLE'S ANNUAL PRODUCT LAUNCH EVENT AND FORMER SHELL, TO BE SHARED, OF WHICH THE MARKET HANGS ON EVERY WORD. BIG QUESTIONS ABOUT HOW THE FOURTH MOST PROFITABLE COMPANY WITH THE THIRD-HIGHEST MARKET VALUATION ACTUALLY BROUGHT ITS GROWTH FOR A CORE IPHONE BUSINESS TO TRANSFORM THE MARKET FOR MOBILE TECH DEVICES AFTER ITS LAUNCH ABOUT 18 YEARS AGO. KATIE: PLENTY TO GET TO COMING UP ON THE CLOSE. WE HAVE GOT OUR EYE ON ALL THE ASSET CLASSES HERE SO WE PUT UP THE SOIL CHART. YOU ARE TAKING A LOOK AT BRENT IN BLUE VERSUS THE OPEC CRUDE OUTPUT. IT BOOSTED ITS PRODUCTION BY LESS THAN EXPECTED BUT STILL A BOOST NONETHELESS AND THEN YOU LAYER ON THE NEWS WE GOT THIS MORNING THAT GEOPOLITICAL NEWS ABOUT THAT STRIKE. INTERESTING TO SEE HOW OIL HAS REACTED, FOR BETTER OR WORSE. IT SEEMS LIKE THESE TWO LINES ARE REALLY THE RELATIONSHIP HERE IN THE QUESTION FOR OIL SO LONG, ROMAINE, HAS BEEN WHEN DO YOU BUILD IN THE RISK PREMIUM? IT NEVER SEEMED TO HOLD FOR LONG. IT SEEMS TO BE THE SUPPLIER PICTURE ROMAINE: MORE THAN ANYTHING ELSE. FOR A LOT OF OIL TRADERS OUT THERE, IT HAS BEEN LIKE CHASING SHADOWS. TODAY, THE LATEST WAS THAT ATTACK IN DELHI. REBECCA BABB AND JOINING US RIGHT NOW, SENIOR ENERGY TRADER AT CIBC PRIVATE WEALTH AND TALK ABOUT THOSE SHADOWS BECAUSE I DON'T KNOW WHAT TO PAY ATTENTION TO IN THE OIL MARKET, WHAT IS GOING ON WITH ISRAEL AND HAMAS, WHAT IS GOING ON WITH THE RED SEA ATTACKS AND UKRAINE AND RUSSIA. WHERE DO YOU LOOK RIGHT NOW? REBECCA: IT IS LIKE CHASING SHADOWS OUT THERE. ONE MINUTE, YOU FEEL LIKE YOU KIND OF HAVE A GOOD SENSE OF IS THEIR SUPPLY AT RISK? HAVE THINGS STARTED TO DE-ESCALATE? IN THE NEXT THING YOU KNOW, THE HEADLINE SHIFTS AND YOU HAVE TO GO BACK TO SQUARE ONE. RIGHT NOW, I THINK THE KEY FOR THE MARKET IS NOT THAT GEOPOLITICAL RISK PREMIUM. I THINK THE MARKET AND TRADERS TO A CERTAIN EXTENT HAVE GIVEN UP A LITTLE BIT TRYING TO EFFECTIVELY PRICE THAT JUST WITH THE AMOUNT OF NOISE AT HEADLINE RISK IN THE MARKET. THE SUPPLY RISK IS GOING TO GET PRICE IN THE MARKET WHEN THERE IS AN IMPACT. LEADING UP TO THAT, WE MAY SEE THESE SPIKES BUT THERE IS JUST A DEGREE OF HESITANCY. ACTUALLY PRICE OUT IN UNTIL THEY ARE OFF THE MARKET AND THE REASON FOR THAT CLEARLY HAS BEEN WE HAVE BEEN AT THIS FOR SEVERAL YEARS, TWO OR THREE YEARS OF INCREASED TENSIONS IN THE MIDDLE EAST AND NO SUPPLY HAS ACTUALLY BEEN IMPACTED. ROMAINE: THAT IS WHAT I AM CURIOUS ABOUT BECAUSE WE HAD THE KNEE-JERK REACTION IN OIL MARKETS WHEN WE FIRST LEARNED ABOUT THE ATTACK AROUND 9:00 A.M. EAST COAST TIME. BUT THE BIG QUESTION HERE IS WHY WITH THAT, AT LEAST IN THE IMMEDIATE TERM, ACTUALLY IMPACT THE FLOW OF OIL OUT OF THE REGION PARTICULARLY GIVEN THAT WE KNOW THAT THE BIGGEST IMPEDIMENT TO THAT IN THE PAST WAS IRAN AND ITS PROXIES THAT HAVE BEEN SEVERELY HOBBLED SINCE THE RETALIATION BY ISRAEL OVER THE LAST COUPLE OF YEARS. REBECCA: YOU ARE RIGHT. NOT ONLY IS THERE LESS ABILITY FOR POTENTIAL RETALIATION BUT THERE SEEMS TO BE LESS WILLINGNESS FROM SOME OF THOSE PLAYERS TO TARGET ENERGY AS DIRECTLY AS WE HAVE SEEN IN THE PAST SO THEY HAVE SUPPORTED HAMAS IN THE PAST, RE-ESCALATE SOME ATTACKS IN THE RED SEA BUT GUESS WHAT? MOST OIL SUPPLIES ARE REROUTED ALREADY FROM THE RED SEA AND NOT USING THAT ROUT AS MUCH SO THAT LIMITS THE KIND OF IMPACT OF THE MARKET SO WE ARE LOOKING AT THE PUSH AND PULL OF CAN THEY DO IT? DO THEY WANT TO DO THAT? HAS THAT FLOW ALREADY BEEN REDIRECTED ANYWAY? THE MARKETS COME IN AND THERE IS VERY LIMITED KIND OF ABILITY FOR THEM TO KIND OF MEANINGFULLY IMPACT THE SUPPLY FOR A LONG PERIOD OF TIME. THE REAL ISSUE HERE AND THE REASON WHY WE DON'T SEE THESE RALLIES HOLD IS THAT THERE IS EXCESS SUPPLY IN THE MARKET AND YOU TALKED ABOUT IT IN THE LEAD UP. OPEC-PLUS HAS COME OUT AND REALLY UNWOUND A TREMENDOUS AMOUNT OF THEIR PRODUCTION CUTS. OVER 2 MILLION BARRELS PER DAY. NOT ALL OF THAT IS ACTUALLY RESULTING IN BARRELS ON THE MARKET AND A TREMENDOUS AMOUNT HAS BEEN PUT IN CHINA'S STRATEGIC PETROLEUM RESERVES. HOWEVER, THERE IS NO SHORTAGE OF CRUDE AVAILABLE TO HIT THE MARKET AND THE MARKET SEEMS TO REALLY FOCUS IN ON THAT AS A BUFFER THAT KEEPS KIND OF ANY KIND OF FEAR ABOUT GEOPOLITICAL RISK IN CHECK SO NOT HAVING REALIZED IN THE SUPPLY LOST IN THE PAST AND HAVING THAT BUFFER THAT I THINK KEEPS TRADERS REALLY RELUCTANT TO TRACE THESE RALLIES. KATIE: WHEN YOU LAY THESE TWO DIFFERENT FACTORS TOGETHER, YOU HAVE ALL THESE SUPPLY CONSIDERATIONS AND THE GEOPOLITICAL TAIL RISKS IF YOU WANT TO CALL THEM THAT. BRENT IS TRADING RIGHT NOW, GIVE OR TAKE. THE AVERAGE FOR THE PAST YEAR OR SO HAS BEEN RIGHT AROUND THOSE LEVELS AND FOR THE PAST THREE MONTHS ESPECIALLY, WE HAVE BEEN MOSTLY TRADING IN THIS RANGE. DO YOU THINK THAT THAT IS REASONABLE? > > I DO. MANY PEOPLE THINK IT SHOULD BE MUCH LOWER. THE QUESTION I GET ASKED THE MOST ISN'T WHY ARE WE RALLYING? IT'S WHY ARE WE IN THE 50'S? EVERYBODY IS LOOKING AT THIS IMPENDING SURPLUS COMING IN THE FOURTH QUARTER OF THE MARKET AND I WILL TELL YOU THAT IS SUCH A CONSENSUS VIEW IN THE BEARISH UNDERTONES TO THE MARKET IF YOU LOOK AT POSITIONING, THE AMOUNT OF HEDGING THAT IS HAPPENING AND THAT IS VERY MUCH PRICED IN SO THE CALLS FOR 50 CRUDE AT THIS POINT, YOU WOULD HAVE TO SEE SOME PRETTY NEGATIVE NUMBERS TO GET US THERE JUST BECAUSE IT IS SO WILDLY CONSENSUS AND THE UPSIDE IS BUFFERED BY THE FACT THAT WE DO HAVE NOT OPEC SUPPLY GROWING IN DEMAND KIND OF OK BUT NOT GREAT. SO WE ARE TRAPPED IN THIS RANGE AND I THINK 65 BRENT IS VERY REASONABLE AND I THINK WE WILL STAY THERE. I DON'T THINK WE ARE GOING TO HAVE THAT MASSIVE DRAWDOWN OF 50'S OR A SPIKE NORTH OF 80. THE FACTORS ALL COMBINED INTO THIS LET'S SEE, SHADOW TRADING ENVIRONMENT. IT IS NOT ASK -- NOT AS EXCITING. KATIE: I APPRECIATE YOUR INSIGHT. THAT IS REBECCA BABINGTON A SENIOR ENERGY TRADER AT CIBC PRIVATE WEALTH. TURNING TO THE ECONOMIC FRONT WITH THE LATEST PAYROLLS REVELATION SETTING THE SCENE FOR PPI AND CPI LATER THIS WEEK. THERE'S A LOT OF DATA FROM WALL STREET TO PARSE THROUGH PLUS PLENTY GOING ON IN THE TECH SPACE BETWEEN APPLE'S LATEST IPHONE EVENT AND ORACLE EARNINGS OUT AFTER THE BELL TODAY SO LET'S WRAP IT ALL TOGETHER WITH JOHN BOLTON, PORTFOLIO MANAGER, MANAGING DIRECTOR FOR GROWTH PORTFOLIOS. GREAT TO HAVE YOU WITH US. LET'S START OF COURSE WITH THE ECONOMIC PICTURE BECAUSE THOSE NUMBERS HIT THIS MORNING AND SHOWING THAT THERE HAS BEEN A RECORD DOWNWARD REVISION TO THAT PAYROLLS NUMBER THROUGH THE YEAR FOR MARCH AND THAT HAS FOR A LOT OF PEOPLE MEANT THAT WE KNOW THAT THE LABOR MARKET IS WEAKENING BUT WE ARE COMING OFF PERHAPS A MUCH WEAKER BASE THAN WE WERE EXPECTING HERE, JOHN. WHAT DOES THAT MEAN FOR YOU AND THE PORTFOLIOS YOU MANAGE? JOHN: THANKS FOR HAVING US. THIS IS THE SECOND CONSECUTIVE BIG REVISION IN THIS SET. YOU KNOW, THE THING ABOUT THIS, IT IS PRETTY BACKWARD LOOKING SO THIS IS A REVISION TO PAYROLLS THROUGH MUCH AND THE WAY THIS IS DONE, YOU CANNOT JUST MAP BACK TO THE AND CURRENT ENVIRONMENT AND SAY IF THIS IMPLIES MONTHLY PAYROLLS WERE ABOUT 75,000 PER MONTH LESS THAN WE HAD BEEN THINKING, IT IS STILL 75,000 PER MONTH LESS THAN WE HAVE BEEN THINKING IN THE CURRENT ENVIRONMENT BUT I DO THINK YOU CAN STEP BACK AND SAY, ALL RIGHT, THE LAST SEVERAL MONTHS, PAYROLLS DATA HAS BEEN CLEARLY SOFTENING IF NOT OUTRIGHT SOFT SO THE MAGNITUDE OF THESE REVISIONS PROBABLY SAYS ON BALANCE THAT IT IS EVEN SOFTER THAN THE RECENT DATA HAVE BEEN SAYING AS WELL SO CLEARLY, LABOR MARKET SOFTENING SHOULD BE ON THAT, A LITTLE BIT DEVILISH FOR THE FED AHEAD OF THE MEETING NEXT WEEK. WE WILL SEE HOW THAT PLAYS OUT. KATIE: WE HAVE PPI AND CPI TO GET TO. MAYBE THIS PUTS A LITTLE BIT MORE PRESSURE ON THE FED TO BE DEVILISH EVEN THOUGH THIS IS RELATIVELY STABLE DATA. YOU ARE THE MANAGING DIRECTOR FOR GROWTH PORTFOLIOS. THINK ABOUT GROWTH EQUITIES. HOW MUCH DO THEY NEED A RATE CUTTING CYCLE HERE? AT THIS JUNCTURE. JOHN: IT IS HARD TO GENERALIZE ABOUT THAT. IT IS A LITTLE BIT CASE-BY-CASE AND DEPENDS ON THE COMPANY, THE SECTOR. OBVIOUSLY, LOWER RATES IF YOU ASSUME LOWER YIELD CURVE, UPWARD PRESSURE ON EQUITY VALUATIONS IS A POSITIVE STARTING POINT. IF YOU ARE IN A LOWER GROWTH ENVIRONMENT, MAY BE FAVOR SOME OF THE SECULAR GROWTH, KIND OF THE LARGE TECH TECH NAMES THAT HAVE BEEN WORKING TO LET ME BE FAVORS THOSE TYPES OF STOCKS IN A LOW GROWTH, LOWER RATE ENVIRONMENT AND YOU KNOW, WE ARE VERY -- WE ARE PAYING VERY CLOSE ATTENTION TO THIS LABOR MARKET DATA AND IT DOES SEEM LIKE WE ARE VERY MUCH -- THE ENVIRONMENT IS VERY MUCH SLOWING AND WE ARE GOING TO HAVE TO PAY ATTENTION TO THAT UNEMPLOYMENT RATE. ONE THING INTERESTING ABOUT THIS REVISION IS IF PAYROLLS WERE SO WEAK, WHY HAVE WE NOT SEEN THE UNEMPLOYMENT RATE BUDGET MUCH? IT'S IN THE FOUR POINT 2% RANGE. STILL PRETTY BENIGN, HISTORICALLY LOW SO WE ARE WATCHING THAT CLOSELY MOVING FORWARD. WE ARE GOING TO HAVE A CONVERSATION JUST UP AHEAD WITH THE FORMER BLS COMMISSIONER, ERICA, FORMER VICE PRESIDENT AT THE FEDERAL RESERVE BANK OF NEW YORK AND WE WILL BE POSING THE QUESTION TO HER DIRECTLY BUT I WANT TO PREVENT A LITTLE BIT AND GET TO YOUR EXPERTISE IN THE TECH SECTOR BECAUSE THIS IS A BIG DAY FOR TECH, EXPECTING ORACLE EARNINGS AFTER THE BELL. YOU HAVE BEEN A BIG INVESTOR IN THE AREA FOR STRUCTURE BUILDOUT. EXPECTATIONS ARE HIGH BUT SO FAR, ORACLE SEEMS TO BE IN A PRETTY SWEET SPOT IF YOU WILL WHEN IT COMES TO ITS POSITION IN THAT SPACE. WHAT ARE YOU EXPECTING TONIGHT AND DO YOU THINK THEY WILL DELIVER? ORACLE, THE EXPECTATIONS ARE PRETTY HIGH HEADING INTO TONIGHT. IT IS REALLY A BLOWOUT QUARTER. EVERYTHING YOU WANT TO SEE AS AN ORACLE SHAREHOLDER, WHICH WE ARE, WE SAW A REALLY STRONG DATABASE RESULTS FROM A STRONG CLOUD SOFTWARE RESULTS THEN ENORMOUS GROWTH IN ORACLE CLOUD INFRASTRUCTURE, THE PUBLIC CLOUD BUSINESS. THEY ESTABLISHED FULL YEAR HAD GUIDANCE THREE MONTHS AGO THAT WAS WAY AHEAD IN THE STREET SO CLEARLY, THE BUSINESS IS COOKING AND WE WANT TO SEE A CONTINUATION OF THAT TONIGHT. THREE MONTHS AGO, LARRY ELLISON TALKED ABOUT DEMAND FOR ORACLE CLOUD INFRASTRUCTURE AS BEING INSATIABLE. HE SAYS UNLIKE ANYTHING HE HAS EVER SEEN IN HIS CAREER. HIS CAREER AS A LOT LONGER THAN MY CAREER HAS BEEN SO THAT IS IRRELEVANT TO A POINT. I WANT TO HEAR MORE POSITIVE COMMENTARY ABOUT THE DEMAND BACKDROP FOR AI INFRASTRUCTURE. TALK ABOUT THE AI BILL THAT OVERALL AND THERE HAS BEEN A LOT OF FOCUS ON THE SOFTWARE SIDE AND ON DATA CENTERS AND AI INFRASTRUCTURE. THEY HAVE BEEN -- THERE HAS BEEN A LITTLE BIT OF A PIVOT. THE NEXT ITERATION OF AIRPODS AND HOPEFULLY MORE TO COME DOWN THE ROAD HERE. WHEN YOU LOOK AT WHAT APPLE ROLLED OUT TODAY AND WHAT THEY HAVE ARTICULATED AS THEIR STRATEGY TO BUILD OUT THAT I FROM ECOSYSTEM IT AT SOME POINT TO TRY TO HARNESS ALL THE PROMISE AROUND AI, HOW MUCH CONFIDENCE TO DO YOU HAVE IN THAT STRATEGY? I THOUGHT APPLE'S EVENT TODAY WAS QUITE IMPRESSIVE. YOU KNOW, THE HIGHLIGHTS FOR ME, FIRST OF ALL, THIS AIRPODS PRO THREE PRODUCT THEY ROLLED OUT, THEY INTRODUCED TO THIS LIVE TRANSLATION FEATURE. I THOUGHT THAT WAS A REALLY INTERESTING USE CASE FOR AI ON DEVICE WHICH IS I THINK BROADLY WHAT APPLE'S AI STRATEGY IS RIGHT NOW TO BE THE AI ON DEVICE LEADER AND SO YOU KNOW, THE CONCEPT OF HAVING HEADPHONES IN THAT ALLOW YOU TO CONVERSE IN REAL TIME WITH SOMEBODY WHO IS SPEAKING A DIFFERENT LANGUAGE, THAT IS PRETTY COOL. I THOUGHT THE IPHONE FEATURES, MOST OF THAT HAS SORT OF BEEN LEAKED A LITTLE BIT IN THE PRESS. THAT PROBABLY SETS THE STAGE FOR THEM TO ROLL OUT A FOLDABLE IPHONE DOWN THE ROAD BUT I THINK THE STOCK IS A LITTLE BIT OFF MAYBE ON THE PRICING FOR IPHONE 17 NOT BEING AS BIG OF AN INCREASE AS HOPED-FOR. BUT I THINK STEPPING BACK, WHAT IS APPLE'S STRATEGY FOR AI, TO YOUR QUESTION? RIGHT NOW, THEY ARE SLOW PLAYING THINGS. THIS MARKET IS MOVING VERY FAST AND I THINK THEY ARE SLOW PLAYING THINGS. THEY ARE HAPPY WITH THEIR MASSIVE INSTALL BASE OF USERS TO BE A DISTRIBUTOR OF AI, MUCH IN THE SAME WAY THEY HAVE BEEN AS A DISTRIBUTOR OF INTERNET TECHNOLOGY OVER THE LAST CYCLE. SO I THINK WE WILL LEARN MORE ABOUT THEIR STRATEGY AS TIME GOES ON BUT FOR NOW, IT'S TO BE THE LEADER OF AI ON DEVICE. APPLESHARE DID BRIEFLY GET INTO THE GREEN DURING THAT EVENT BUT EVENTUALLY LOST STEAM, DOWN 1.5% ON THE DAY. ED LUDLOW, THE COHOST, IN CUPERTINO, CALIFORNIA AND I DO JUST KIND OF WANT TO POINT OUT, YOU KNOW, YOU SIT IN A VERY INTERESTING SPOT. WE TALK ABOUT THAT MILESTONE EVENT BACK IN 2007 WERE 50 MILES OR SO NORTH OF YOU, STEVE JOBS WALKED ACROSS THE STAGE AND INTRODUCED WHAT AT THE TIME WAS SOMETHING REVOLUTIONARY. IT DID CHANGE WHAT WE THOUGHT ABOUT MOBILE COMPUTING. NOW, 18 YEARS LATER, THERE'S A LOT OF QUESTIONS AS TO HOW YOU MOVE THE NEEDLE FORWARD FOR A DEVICE THAT SELLS 200 MILLION UNITS A YEAR, GENERATING 200 BILLION DOLLARS IN REVENUE A YEAR JUST ON THE DEVICE ALONE. WHAT DID WE LEARN TODAY HERE ABOUT THE POTENTIAL TO GROW THAT EVEN FURTHER? > > YOU HIGHLIGHT THE IPHONE EVENT DAYS ALMOST ALWAYS SELL THE NEWS EVENT BUT THE STOCK OFTEN RECOVERS ON A 30 DAY, 60 DAY, OR LONG TERM PERIOD WHERE THE HANDSET IS WELL RECEIVED. THE F-117 LINEUP FROM THE BASE MODEL THROUGH TO THE PROMAX IN THE AIR IN THE MIDDLE IS AS BLOOMBERG REPORTED IT WOULD BE. HEAVY EMPHASIS ON THE AIR, FIVE .5 MILLIMETERS THICKNESS IN A MARKET WHERE SAMSUNG ALREADY BOUGHT AN ULTRATHIN PHONE BUT THE FOCUS VERY MUCH ON PRICING. WHY? BECAUSE OF THE PRESSURE ON TIM COOK AND APPLE TO MOVE MORE OF THE SUPPLY CHAIN TO AMERICA BUT WE ARE IN A HIGHER COST ENVIRONMENT. ON THE PRO MODEL, THE COST IS ABOUT 00 HIGHER THAN RELATIVE TO LAST YEAR'S GENERATION. HOWEVER, THE STORAGE AVAILABLE IS DOUBLE. SO SOMETHING YOUR GUESTS WERE TALKING ABOUT IN THE LAST SEGMENT, THE INNOVATION ACROSS THE LINEUP IS IN THE SELLER CAN. PROPRIETARY PROCESSES AND THE HEAVY EMPHASIS FROM APPLE THAT THE CAPABILITIES OF THAT PROCESS SITTING AS WELL AS THE ENERGY EFFICIENCY AND HEAT MANAGEMENT, THAT IS THE HARDWARE STORY BEHIND THE AI STORY THAT APPLE DID NOT TELL. ALSO INTERESTING TO SEE IT. WHEN THE AIRPODS PRO THREE DID GET ANNOUNCED WITH SIMULTANEOUS TRANSLATION, THE STOCK MADE A MOVE FROM DOWN .7% INTO POSITIVE TERRITORY BUT LOOK AT THE LANDSCAPE. LET'S IS DOING SIMULTANEOUS TRANSLATION THROUGH ITS VIRTUAL REALITY META --META IS DOING SIMULTANEOUS TRANSLATION THROUGH ITS VIRTUAL REALITY. FOR APPLE, THIS IS THE STORY. IS IT ENOUGH ON THE CAPABILITY TO DRIVE AND UPGRADE CYCLE? THE PRICING IS IMPORTANT. IT'S NOT A REAL TERMS RAISE IN PRICES BUT WHAT WILL INCENTIVIZE THE CONSUMER TO GO OUT AND DRIVE IT? YOU ARE EXACTLY RIGHT. 50% OF THE 3.5 TRILLION DOLLAR COMPANY SALES OF THE IPHONE BOAT AND THE TIMING OF THIS IS SUBSTANTIAL. THE IPHONE WILL GO ON SALE WITHIN THE QUARTER BUT NEXT QUARTER, FISCAL FOR US, THAT IS THE HOLIDAY PERIOD. THAT IS WHEN IT COMES DOWN TO WITH APPLE. THE FOCUS IS A SPRING RELEASE AS WE HAVE REPORTED ON SCENERY AND APPLE INTELLIGENCE AND THAT WILL BRING US BACK TO THE SOFTWARE STORY ON HANDSETS WHICH ACCORDING TO APPLE'S PRESENTATION TODAY WILL BE MORE THAN CAPABLE OF HANDLING DEVELOPMENTS IN AI. ROMAINE: ED LUDLOW IS GOING TO BE STICKING AROUND OUTSIDE APPLE PARK IN CUPERTINO, CALIFORNIA. KATIE. KATIE: A LOT OF FOCUS ON THE HARDWARE PUT ON THE BROADER UNIVERSE AND TO THAT POINT, COMING UP, A CONVERSATION WITH T-MOBILE'S CHIEF OPERATING OFFICER FROM APPLE EVENT IN CUPERTINO. WE WILL BRING YOU THAT CONVERSATION, NEXT. THIS IS SO CLOSE ON BLOOMBERG. ROMAINE: APPLE EARLIER TODAY INTRODUCING THE NEW IPHONE 17 LINEUP AT THEIR ANNUAL PRODUCT LAUNCH EVENT. TODAY, PREORDERS EXPECTED TO START TAKING PLACE MAY BE ASKING IS THIS WEEK. A NEW MODEL THAT COULD BE A GROWTH CATALYST FOR U.S. CARRIERS LIKE T-MOBILE ARE BOOSTING DEVICE SALES AND UPGRADES. ED LUDLOW IS OUTSIDE OF APPLE PARK IN CUPERTINO, CALIFORNIA, STANDING BY RIGHT NOW WITH T-MOBILE'S CHIEF OPERATING OFFICER. ED. ED: T-MOBILE COO. WE KNOW THE PRICING AND A LINEUP ABOVE THE 17 GENERATION. NOW, IT PASSES TO THE CARRIERS. WHAT IS THE TRADE IN DEAL GOING TO BE? > > THE REALITY IS WE HAVE THE BEST IPHONE AND THEN T-MOBILE, WE HAVE THE BEST NETWORK WITH THE BEST VALUE. THERE IS ONLY ONE PLACE YOU CAN GET ALL THREE. BEST NETWORK, BEST IPHONE, BEST FAMILY AND THAT IS T-MOBILE. CUSTOMERS WHO COME INTO T-MOBILE STARTING NOW GET THE BEST DEAL. THEY GET THE IPHONE 17 ON US AND THEY SAVE AT LEAST 20% IN COMPARISON WITH OTHER CARRIERS. ED: IF YOU WENT TO THE T-MOBILE WEBSITE THIS MORNING, YOU WOULD HAVE GOT THE IPHONE 16 ON US, MEANING NO TRADE-IN REQUIRED. YOU WILL EAT THE COST OF THE HANDSET WHILE TYING THE CUSTOMER TO A LONG-DURATION CONTRACT. EXPLAIN THE ECONOMICS AND WHY THAT IS A GOOD DEAL. > > WHEN WE LOOK AT NEW CUSTOMERS COMING IN, FIRSTLY ON THE IPHONE 17, IT WILL GET STRATIFIED DEPENDING ON WHICH MODEL YOU ARE COMING IN ON AND THERE WILL BE DIFFERENT TRADE IN OFFICE AT APPLY BUT MORE BROADLY IF WE THINK ABOUT THIS, RIGHT, WE BELIEVE WHEN PEOPLE COME IN FOR A NEW PHONE, WE ALSO GET REALLY STRONG REVENUE BECAUSE THEY GET A REALLY GOOD EXPERIENCE ESPECIALLY AT T-MOBILE BECAUSE IN MANY WAYS, WE HAVE BUILT OUR NETWORK FOR A PRODUCT LIKE THIS. OUR SUPERIOR 5G NETWORK WHICH WE BUILT YEARS AHEAD OF OUR COMPETITION, THAT IS WHAT YOU NEED TO GET THE BEST OUT OF YOUR NEW IPHONE AND YOU ALSO GET VALUE. FOR DECADES, WE LIVED WITH THIS CONTRADICTION. OVER 70 MILLION AMERICANS CHOSE VERIZON OR AT & T AT THE BEST NETWORK IN THE 4G AIR AND THEY PROBABLY MADE THE RIGHT CHOICE THEN BUT THEY PAID A PREMIUM FOR IT. TODAY FOR THE FIRST TIME, OVER THE LAST THREE TO FIVE YEARS AS OUR NETWORK HAS BECOME THE BEST 5G NETWORK IN AMERICA, YOU DON'T NEED TO MAKE THAT TRADE OFF ANY LONGER. > > THE 5G UPGRADE CYCLE HAS KIND OF BEEN AND GONE SO WHEN YOU LOOK TO YOU -- I'M ASSUMING YOU HAVE BEEN NEGOTIATING WITH APPLE FOR MONTHS BUT WHEN HE LOOKED AT THE TECHNOLOGICAL UPDATES TO THE IPHONE 17 GENERATION BASE THROUGH PROMAX, WHAT WERE YOUR EXPECTATIONS FOR AN UPGRADE CYCLE PURELY ON THE CAPABILITIES OF THOSE HANDSETS? > > WHEN WE LOOKED AT THE AMOUNT OF INNOVATION BEING UNLEASHED TODAY, WE ARE VERY OPTIMISTIC ON WHAT THIS WILL DO TO THE UPGRADE CYCLE AS WELL AS TO THE NUMBER OF SWITCHERS IN THE MARKET. WE LOVE AN ENVIRONMENT WHERE LOTS OF PEOPLE SWITCH. WHEN YOU HAVE THE CHOICE OF BEST NETWORK AND BEST VALUE, THERE'S ONLY ONE NATURAL PLACE TO GO AND THAT IS T-MOBILE. ED: WHAT WAS YOUR REACTION TO THE PRICING? > > IT'S EXACTLY WHAT WE EXPECTED AND WE ARE REALLY BULLISH AND OPTIMISTIC ABOUT HOW WE TRY THIS FORWARD AND BRINGING IN MORE CUSTOMERS OUT OF THE BEST NETWORK. ED: IT IS ACADEMIC SOMEWHAT. APPLE DID NOT RAISE PRICING ON THE PRO. IT'S ABOUT 00 GREATER THAN THE PRIOR GENERATION. THE STORY IS JUST DOUBLE SO TAKE WHAT YOU WILL. HAD PRICES GONE UP, WOULD T-MOBILE HAVE HAD TO PASS THEM ONTO THE CONSUMER IN THIS ENVIRONMENT? > > WE LOOK AT EACH OF THESE THINGS AS THEY EVOLVE BUT I THINK WE ARE CLEAR AND A LOT OF OUR MESSAGES THAT THE ECONOMICS OF THIS BUSINESS DOES MEAN THAT WHEN YOU HAVE A SUBSTANTIAL PRICE RISE, YOU NEED TO PASS THAT ON. ED: THE ECONOMICS MAKE SENSE FOR T-MOBILE EVEN WITH THE ON US APPROACH? > > ABSOLUTELY, THEY MAKE SENSE. THE LIFETIME VALUE'S WE GET FROM OUR CUSTOMERS NOW ESPECIALLY WITH NEW HANDSETS AND NEW CAPABILITIES, BECAUSE OF THE QUALITY OF OUR NETWORK AND THE LOYALTY THAT THAT ENGENDERS, APART FROM THE FACT THAT WE PROVIDE GREAT VALUE, THAT COMBINATION MEANS THIS IS SOMETHING WE ARE VERY HAPPY WITH. ED: TAKE ME INSIDE THE NEGOTIATIONS WITH APPLE. DO YOU BASICALLY REALLY COMMIT TO THE SAME INVENTORY FOR THIS GENERATION OF PHONE AS YOU DID WITH THE 16 FAR IN ADVANCE OR DO YOU LET IT PLAY OUT AND SEE WHAT HAPPENS? HELP US UNDERSTAND HOW YOU MANAGE THAT. > > OUR RELATIONSHIP WITH APPLE IS STRONG SO THIS IS A PARTNERSHIP WHERE WE SPEND A LOT OF TIME TALKING ABOUT THIS RIGHT FROM THE POINT THAT THE WHOLE THOUGHT PROCESS -- TO CHARACTERIZE IT PURELY AS A NEGOTIATION IS WRONG AND THIS AMOUNT OF CORE DEVELOPMENT THAT HAPPENS IN PART OF IT IS VOLUMES. THIS IS A MUCH BROADER PICTURE. ONE OF THE REASONS WE ARE SO EXCITED FOR THIS IPHONE IS IT WORKS BEST ON T-MOBILE BECAUSE A LOT OF THE FEATURES WE BUILT INTO OUR 5G STANDALONE NETWORK SUPPORT THIS GENERATION OF IPHONE AND THAT IS NOT TRUE. ED: YOUR MODELING GREATER SALES THEN YOU START INITIALLY? > > THE CUSTOMER WILL DECIDE WHERE A LOT OF THIS PLAYS OUT BUT WE A WORLD WHERE IT IS SIMPLY NOT ABOUT SALES WITH US. IT'S ABOUT THE AMOUNT OF SWITCHING THAT HAPPENS IN THE INDUSTRY. WE LIKE A WORLD WHERE CUSTOMERS ARE SWITCHING. ED: IT ACCESS TO THE ULTRATHIN 5.6 MILLIMETERS. SAMSUNG, ANOTHER HANDSET THAT YOU CARRY, HAS THE GALAXY -- FIVE POINT EIGHT MILLIMETERS. AS A SEGMENT, WHAT HAVE YOU SEEN IN THIS CALENDAR YEAR FOR CONSUMER APPETITE IN THE MARKETS YOU OPERATE IN FOR AN ULTRATHIN PHONE? > > WE SEE THAT HARDWARE INNOVATION DOES EXCITE CONSUMERS AND WE ARE REALLY EXCITED ABOUT THIS HARDWARE INNOVATION. HARDWARE INNOVATION DOES GET CUSTOMERS MORE EXCITED AND THEY DO LOOK AT THEIR OPTIONS OR WHETHER I WANT TO STAY WITH THE OLD HANDSET OR MOVE TO THE NEW ONE. > > WHICH DO YOU THINK WILL BE THE VOLUME? I ALSO THINK PROBABLY MARGIN DRIVER FOR YOU. YOU ARE ANSWERING ON BEHALF OF YOUR COMPANY, T-MOBILE. > > I LOVE THE COSMIC ORANGE COLOR AND WHEN WE TALK ABOUT -- LOOK, DIFFERENT CUSTOMERS WILL CHOOSE DIFFERENT OPTIONS. WE DO NOT THINK OF THIS AS WHERE DO WE SINGLE-HANDEDLY MAKE THE MOST MARGIN? OUR COMMITMENT IS TO PROVIDE THEM THE BEST NETWORK WITH THE BEST VALUE. WHEN WE DO THAT, MARGINS AND FINANCIALS ARE JUST THE RESULT OF THAT BECAUSE AS A COMPANY, WE ARE JUST BREAKING THROUGH THE AGE-OLD TRADE-OFFS CUSTOMERS HAVE HAD TO MAKE SO WE DON'T THINK OF THIS AS I MAKE MORE MARGIN ON THIS HANDSET, THEREFORE LET ME SELL MORE. WHAT IS THE PAIN POINT THE CUSTOMER IS TRYING TO SOLVE? IF WE SMASHED THROUGH THE PAIN POINT, WE WILL ALL BE BETTER OFF. THE CUSTOMER AND OBVIOUSLY ASKED. ED: ONE OF THE BIGGEST NEWS STORIES HAS BEEN IN THE WORLD OF SATELLITE CONNECTED HANDSETS. YOU HAVE AN EXISTING RELATIONSHIP WITH STARLINK. I WAS PART OF THE BETA AND IT WORKED BUT WHAT IS T-MOBILE'S REACTION TO THAT? IN THE CONTEXT OF APPLE, DO YOU EXPECT TO FOCUS MORE ON CONNECTIVITY WITH THE HANDSET? > > WE ARE DELIGHTED WITH WHAT STARLINK HAS DONE. WE STARTED WITH A MISSION, WITH A GOAL TO PUT AN END TO IT AND WE ARE DELIGHTED THAT OUR STRATEGIC PARTNER HAS NOW MADE A BIG, SIGNIFICANT INVESTMENT WHICH WILL DRIVE THAT FORWARD. ED: HE JUST JOINED T-MOBILE IN MARCH OF THIS YEAR BUT YOU ARE A VETERAN OF THIS INDUSTRY. IF YOU DON'T MIND ME SAYING, YOU UNDERSTAND HOW THIS WORKS. WHERE DOES THIS IPHONE 17 GENERATION IN TODAY'S LAUNCH RANK IN THE HISTORY OF IPHONE EVENTS IN DRIVING AN UPGRADE CYCLE, IN MOVING TECHNOLOGY FORWARD? > > WE ALL HEARD WHY IT IS THE BEST IPHONE TO DATE. AS FAR AS THE UPGRADE CYCLE AND -- THE THING THAT WE GET VERY, VERY FOCUSED ON IS WHAT DOES THIS DO TO STIMULATE MORE SWITCHING? THE REALITY IS A GREAT NEW HANDSET DOESN'T START BREAKING THROUGH THE INERTIA THAT MILLIONS OF AMERICANS ARE IN OR A FALSE TRADE-OFF THEY HAVE MADE IN THE PAST WHERE THEY HAVE CHOSEN A NETWORK AND PAID A PREMIUM FOR IT, WE SEE THIS AS A BIG MOMENT TO DRIVE THAT SWITCHING FURTHER. > > THE T-MOBILE C.E.O. THEY THINK THEY CAN GET CUSTOMERS TO SWITCH TO T-MOBILE BASED ON TODAY’S LAUNCH. > > 3:30 HERE IN NO, AS WE COUNT YOU DOWN TO THE CLOSING BELL. ROMAINE BOSTWICK WITH KATIE GREIFELD WITH A FOCUS ON THE BROAD MARKET. WHILE APPLE IS NOT THE BIGGEST DECLINER ON A PERCENTAGE IT IS THE BIGGEST DRAG. DOWN ABOUT 1.5%. BUT A LOT MOVING. > > PERHAPS A SIGN OF HEALTH YOU HAVE THE MARKET BROADLY HIGHER EVEN THOUGH YOU HAVE APPLE ACTING AS A WEIGHT AND SHAKING OFF THE B.L.S. REVISION S. IT DOES PAINT A EXPECT THAT HAS BEEN WEAKENING FOR SOME TIME. > > WE MADE A BIG TO DO ABOUT IT A YEAR AGO AND I DIDN’T UNDERSTAND WHY. WHAT THEY CAME OUT TODAY EVERY YEAR THEY BENCHMARK AT BASICALLY MARCH AND LOOK FROM THE END OF MARCH BACK A YEAR. THEY HAVE GONE BACK AND SAY WHEN YOU AVERAGE THE 12 MONTHS THERE WAS ROUGHLY 76,000 FEWER JOBS CREATED IN EACH MONTH ON AVERAGE. THAT IS ABOUT HALF THE PACE OF WHAT WAS ORIGINALLY REPORTED. THAT TELLS US FOR ALL THE PEOPLE SAYING MAYBE THE FED SHOULD HAVE PAID ATTENTION TO WEAKNESS THEY HAVE EVIDENCE THAT IT WAS WILL. > > AND DOES PROVIDE SOME JUMPS TO WHAT WE SAW FROM THE FEDS THAT 50 BASIS POINT RATE CUT. IT IS CONTROVERSIAL THEN AND NOW BUT WE HAVE THIS REVISED PICTURE OF THE LAB MARKET BEING LESS STRONG THAN WE THOUGHT DOES CERTAINLY LEND CREDENCE TO THAT. > > AND YOU TALK ABOUT THE CONTROVERSY. THE WHITE HOUSE MADE IT A BIG DEAL WITH THE VICE PRESIDENT SAYING B.L.S. DATA IS USELESS AND THERE IS NEEDED CHANGE TO RESTORE CONFIDENCE IN THE NUMBERS AND IN THAT AGENCY. > > THE POLITICS OF THIS CERTAINLY FRONT AND CENTER. LET’S DISCUSS THIS WITH SENIOR COMPLEX ADVISE OR AT CORNELL SCHOOL AND FORMER COMMISSIONER OF THE BUREAU OF LEBRON STATISTICS -- LABOR STATISTICS. LET’S PUT ASIDE THE POLITICS EVEN THOUGH IT IS HARD TO DO. JUST LOOKING AT THE NUMBERS IT IS CLEAR THE PAYROLL REVISIONS HAVE BEEN GETTING LARGER CULMINATING IN TODAY’S RELEASE A RECORD DOWNWARD REVISION. WHAT FACTORS LED US TO THIS MOMENT? > > WELL, B.L.S. FEELS A LITTLE ABLE TO TELL US A LITTLE BIT MORE ABOUT WHAT THE ISSUES WERE THAT GAVE US THE DEEP REVISIONS. NOW, REMEMBER THIS IS THE TIME OF THE YEAR WHERE B.L.S. SAYS WE HAVE BEEN CONTACTING A SURVEY FOR THE PAST 12 MONTHS AND WE WILL COMPARE IT TO VERY MUCH DETAIL AND MORE COMPREHENSIVE ADMINISTRATIVE DATA AND SEE HOW CLOSE WE ARE. AND USUALLY THEY ARE STILL PRETTY CLOSE, THE DIFFERENCE IS JUST .6%. BUT ALL OF THAT DIFFERENCE IS CONCENTRATED IN THIS PAST, IN THOSE 12 MONTHS FROM MARCH TO MARCH, 2024, 2025. THEY SAID IT WAS DUE TO TWO FACTORS ONE OF WHICH FRANKLY I WAS CONCERNED ABOUT BECAUSE THE RESPONSE RATE TO THE SURVEY HAS BEEN FALLING. IT HAS FALLEN ABOUT 50%, 30 PERCENTAGE PAIOINTS, IN THE PAST 10 YEARS. SO THAT HAS INTRODUCED SOME BIAS AND THAT IS THAT THE COMPANIES THAT ARE NOT RESPONDING IT TURNS OUT WERE NOT GROWING AS FAST AS THEY DID. > > I’M CURIOUS ABOUT THE RESPONSE RATE AND THERE’S BEEN FAIR EVEN PREDATING THE TRUMP ADMINISTRATION THE DATA COLLECTION NOT THAT THEY WERE FLAWED BUT DEPARTMENT EVOLVE. LIKE NO ONE IS SITTING AT HOME ON LAND LINES AND THE SUBMISSION OF REPORTS ISN’T NECESSARILY AS TIMELY AS WHAT IT USED TO BE. WHEN WERE THERE 2013 AND 2016, THAT RANGE, WHAT WAS THE DISCUSSION ABOUT TRYING TO MODERNIZE THE COLLECTION PRACTICES? > > IT WAS PRETTY MUCH UNDER WAY WHILE I WAS THERE. IF YOU LOOK AT THE RESPONSE RATE WHILE I WAS THERE -- AND I’M NOT TAKING CREDIT FOR THIS BUT IT CERTAINLY HAPPENED WHILE I WAS THERE -- THE B.L.S. WAS INTRODUCING MORE AND MORE ELECTRONIC MEANS FOR THE FIRMS TO RESPOND. SO THE EMPLOYERS REALLY GOBBLED THIS UP. IN FACT, B.L.S. HAD A LONG WAITING LIST TO GET THE COMPANIES ON THE ELECTRONIC MEANS OF REPORTING. DURING THAT TIME, THERE WAS NO DECLINE IN THE ESTABLISHMENT RESPONSE RATE. SO IT WAS ABLE TO STAVE OFF THE DECLINE BY REDUCING THE BURDEN AND THAT CAUSED THE VAST NUMBER OF EMPLOYERS WHO REPORT DO REPORT ELECTRONICALLY. SO THAT WAS AN IMPORTANT FACTOR IN KEEPING THE RESPONSE RATES HIGH. BUT THERE WAS A BIG DECLINE IN THE PANDEMIC AND BLS HASN’T BEEN ABLE TO GET ENOUGH OF THOSE ESTABLISHMENTS BACK. > > AS YOU MENTIONED, YOU WERE ABLE TO STABILIZE THAT DECLINE WHILE YOU WERE THERE. BUT IT FEELS LIKE THE PANDEMIC DISRUPTED A LOT OF THINGS BUT IT SEEMS IF YOU COOPERATE NECESSARILY NOT ONLY STABILIZE BUT IMPROVE WHAT DOES THAT DO TO THE QUALITY OF THE DATA? > > THAT IS A REALLY GOOD UPON THE YOU MAKE. WHAT IS HAPPENING HERE IS THE FALLING RESPONSE RATES ARE NOT SPECIFIC TO B.L.S., TO THIS SURVEY, TO B.L.S., TO THE PUBLIC SECRE SECTOR. THERE IS A DECLINING RESPONSE RATE TO SERVICE ALL OVER THE WORLD ANY KIND OF SURVEY. THE FEDERAL GOVERNMENT AND B B.L.S. IN TECHNIQUE -- IN PARTICULAR HAVE AMONG THE HIGHEST RESPONSE RATES BUT THEY ARE ALL GOING DOWN. SO WHEN PEOPLE TALK ABOUT MODERNIZING THE STATISTICAL SYSTEM THAT IS WHAT IT IS ALL ABOUT. THE SAME TIME YOU HAVE THE RESPONSE RATES GOING DOWN YOU HAVE A BURGEONING OF ELECTRONIC OF ALL SORTS THROUGHOUT THE ECONOMY. ALL OUR TRANSACTIONS ARE NOW BEING RECORDED. AND THE STATISTICAL AGENCIES CAN’T WAIT TO GET THE DATA AND DESIGN NEW KINDS OF MEASURES TO TAKE THAT IN. > > WHO IS LEADING THAT CHARGE THOUGH, ERICA? IN ADDITION TO YOUR RULE AT B.L.S. COMMISSIONER YOU DID SERVE ON A USER ADVISORY COMMITTEE THAT HAVE BEEN DISBANDED. WE TALK ABOUT HAVING FAITH IN THE DATA THAT COMES OUT OF THE GOVERNMENT. IT IS MORE FAVORITE OF THE PEOPLE WHO ARE HAD CHARGE OF GATHERING THE DATA OR OVERSEEING IT. DO YOU HAVE FAITH IN THOSE PEOPLE RIGHT NOW? > > I REALLY DO. THEY ARE SOME OF THE PMOST DATA DEDICATED NERDS ON THE FACE OF THE EARTH. THEY LIVE AND BREATHE GETTING THE DATA OUT THERE, MAKING SURE THAT IT IS GOOD, THAT EVERYBODY IS TRUSTED THE THEY WOULDN’T CHOOSE TO WORK THERE OTHERWISE BECAUSE THEY COULD EARN MORE MONEY ELSEWHERE. BUT THEY HAVE BEEN HAMSTRUNG BY A DECLINING BUDGET. B.L.S.’S BUDGET HAS FALLEN ABOUT 20% IN REAL TERMS IN THE LAST 15 YEARS AND THIS ADMINISTRATION IS PROPOSING CUTTING IT ANOTHER 8% AND SINCE JANUARY IT HAS LOST 20% OF ITS STAFF, ONE-THIRD OF THE LEADERSHIP POSITIONS ARE VACANT. SO THE ONES THAT ARE THERE ARE PERHAPS THE MOST DEDICATED PEOPLE LEFT. > > WE HAVE TO LEAVE IT THERE. WE REALLY APPRECIATE YOU TAKING TIME FOR US ON A COMPLICATED TOPIC AND IT WILL TALK A LOT OF WEEKS, IF NOT MONTHS OR YEARS. WHEN WE COME BACK WE WILL TURN BACK TO WHAT IS GOING ON IN THE MARKET. ONE OF THE BIGGEST DECLINERS AND REAL LIFE SUCCESSION. WE WILL TALK ABOUT THE MURDOCK FAMILY AND EFFECT ON THE SHARES OF FOX CORPS. ROMAINE: WELCOME BACK. THE RECESSION BATTLE FOR RUPERT MURDOCK’S EMPIRE APPEARS TO BE OVER REACHED BETWEEN HAS ESTATE AND FAMILY MEMBERS. 21ST FOX SHARES DOWN 5.8% ON THE DAY AS ROCK LAND MERCHANT DOCK HAS SAID THEY HAVE GAINED CONTROL. THIS HAS BEEN PLAYING OUT FOR YEARS AND IT IS LOCK LAND MURDOCK HAS THE SOLE CONTROL AND VOTING POWER HE WILL INHERIT FROM RUPERT AFTER HIS DEATH. KATIE: TALK ABOUT WHY SHARES ARE DOWN. > > THERE’S A STOCK SALE HAPPENING. HE AND THREE OF HIS OTHER SIBLINGS ARE GETTING .1 BILLION PAYOUT FOR EACH AND STOCK IS BEING SOLD FOR IT AND THAT DEPRESSED THE RICE. ROMAINE: TO KATIE’S POINT LOCK HRORPLDZ R IS IT PRETTY MUCH JUST STATUS QUO OR DO WE EXPECT TO SEE WAYS TO CHANGE. > > INVESTORS ARE FAMILIAR WITH HIS STYLE. HE IS PLOTTED A STEADY COURSE FOR FOX. THEY HAD A NEW STREAMING SERVICE LAUNCH IN AUGUST, THE ACQUISITION OF CTUBY. HE IS MAYBE NOT AS COLORFUL AS RUPERT BUT PUT BOTH IN A STABLE DIRECTION. KATIE: A FOCUS ON PROFITS. TALK TO US MORE ABOUT THE FUTURE. YOU THINK OF THE DIFFERENT TENTACLES THAT FOX HAS SPREAD INTO. WHAT IS LEFT. > > THE MEDIA LANDSCAPE RIGHT NOW IS ROUGH AND FOX AND NEWS CORP. HAVE FARED VERY WELL. WE HAVE SEEN THE "WALL STREET JOURNAL" EMBRACE THE DIGITAL ERA. THEY HAVE DONE WELL EVEN THOUGH ADVERTISING HAS DECLINED. FOX IS THE MOST WATCHED CABLE NEWS WORK SO HE HAS A HEALTHY EMPIRE AT THE MOMENT AND I THINK HE IS GOING TO TRY TO KEEP GOING AND SEE WHAT HAPPENS. KATIE: THAT IS HANNAH MILLER REPORTING ON THE REAL LIFE SUCCESSION STORY. WE ARE ABOUT 15 MINUTES FROM THE CLOSING BELLS. WE WILL TAKE YOU THROUGH THE ACTION WITH THE CO--C.I.O. ROMAINE: IF YOU ARE IN A LOWER GROWTH AOEURPLT ENVIRONMENT MAYBE FAVOR THE LARGE TECH NAMES. WE ARE PAYING CLOSE ATTENTION TO THE LABOR MARKET DATA AND IT DOES SEEM LIKE WE ARE VERY MUCH THE ENVIRONMENT IS VERY MUCH SLOWING. ROMAINE: JOHN BELTON KICKING US OFF TO THE CLOSE ABOUT 50 MINUTES AGO AND THE MARKET IS HAVING TO DIGEST A LOT. WE TALK ABOUT WHAT IS GOING ON WITH THE B.L.S., DATA SIGNS OF SOFTNESS AND GEOPOLITICAL ISSUES AND QUESTIONS ABOUT THE TECHNIQUE TECHNIQUE TRADE BUT THE S & P AND DOW ARE HIGH. KATIE: A -- YOU’RE SEEING THE ECONOMIC CONCERNS WITH THE B.L.S. REVISIONS BUT THE REACTIONS HAVE BEEN TO SELL BONDS, A REACTION I DON’T QUITE UNDERSTAND BUT TWO-YEAR HIGHER ABOUT SIX BASIS POINTS. ROMAINE: WE WILL FIND OUT A LOT IN ABOUT A WEEK WHEN THE FED MEETS NEXT TUESDAY AND WEDNESDAY AND GIVES US THE DECISION ON WEDNESDAY AND HOPEFULLY WE WILL GET MORE CLARITY FROM JAY POWER. ALTHOUGH KATIE MAKES A POINT WITH THE RUSSELL 2000, MID CAPS OFF THE MASSIVE REVISION DOWNWARD TO LABOR MARKET DATA THE LAST 12 POINTS. DANA, THIS IDEA OF AN ECONOMY I DON’T WANT TO SAY WEAKENING BUT IT IS WEAKER THAN WHAT WE TAUGHT IT WAS BASE -- WE THOUGHT IT F WAS. I’M CURIOUS IF THAT CHANGES THE CALCULUS OF HOW YOU INVEST IN THIS MARKET GOING FORWARD. > > CERTAINLY IF THERE IS ANY GOOD NEWS TO PULL OUT OF THIS I THINK THE SEPTEMBER RATE WAS ALREADY A FOREGONE CONCLUSION. BUT TO THE EXTENT THERE WOULD BE LIMITATIONS ON CUTS THE REST OF THE YEAR THE FED WILL BE CUTTING, IT WILL BE THREE THIS YEAR AT LEAST. I CAME INTO THE DAY SORT OF THE MIND THAT IT IS NOT GOING TO BE 50 BASIS POINTS. I DON’T THINK THAT IS OUT OF THE REALM OF POSSIBILITY. I DO FEAR THAT INVESTORS WILL LOOK AT THIS AND VIEW IT AS OK THERE’S A LOOMING CRISIS, IS IT TIME FOR ME TO MOVE TO MONEY MARKETS. I DON’T THINK THAT IS THE PICTURE THAT RETAIL INVESTORS SHOULD TAKE BUT I DEFINITELY THINK IT MEANS WE ARE CLEARLY IN A WEAKER STATE THAN WE THOUGHT. TARIFFS, GOVERNMENT LAYOFFS, HIGHER INTEREST RATES HAVE MORE OF A TOLL. ROMAINE: WHAT IS THE BALANCE BETWEEN THE PROSPECT OF A SOFTER ECONOMY AND SIGNIFICANTLY LOWER RATES? THE IDEA BEING THAT SMALL CAPS, MID CAPS, WOULD BENEFIT FROM A RATE CUTTING CYCLE, A PROLONGED ONE OF THE WHAT IS THE BALANCE IF WE ARE COMING AGAINST A BACKDROP AGAINST A ECONOMY TAKING A DOWNTURN? > > CERTAINLY RATE CAPS HELP WITH SMALL AND MID. THEY ARE MORE LIKELY TO GO TO CAPITAL MARKETS IT RAISE BONDS SO -- MARKETS TO RAISE BONDS. IF WE HAVE A RATE CUTTING CYCLE THAT COULD BOOST THE ECONOMY, BOOST THE SMALL GAP AREAS AND IF YOU LOOK AT THE U.S. YOU HAVE BIG TECH, AI, LARGE GROWTH, KILLING IT AND S & P LOOKS GREAT AND THIS SWATH OF EVEN WITHIN SMALL COMPANIES UNPROFITABLE COMPANIES. SO ACCESS TO GET TO CAPITAL CAN SPUR MORE ECONOMIC GROWTH. BUT TO THE EXTENT THAT TARIFFS OR WE ARE A LITTLE LATE ON THE RATE CUTS, WE COULD SEE THAT PULLING AGAINST THE IMPACT THAT THE RATE CUTS HAVE NOW. THAT BIFURCATION THAT YOU DESCRIBED HAS BEEN DEVELOPING A WHILE, BUT IT WAS ESPECIALLY DRAMATIC RIGHT NOW. I WANT TO TALK MORE ABOUT THE BOND MARKET. I KNOW YOU CAN’T MAKE TOO MUCH OF A SINGLE DAY’S ACTION BUT TWO-YEAR UP SIX BASIS POINTS AFTER WE HAD B.L.S. REACTIONS THAT MIGHT MAKE THE FED MORE DOVISH. HOW DO YOU EXPLAIN THE BOND MARKET? > > IT IS ABSOLUTELY INTERESTING. I WOULD HAVE EXPECTED THAT IF ANYTHING YOU WOULD SEE A LITTLE BIT OF DECREASE. I TAKE SOME COMFORT THAT THE MARKET HAS PRICED A LOT OF IT IN SO WE ARE NOT SEEING A HUGE REACTION. THE FACT THAT WE WILL BE IN A RATE CUTTING CYCLE IS PRICED IN AND WE ARE SEEING HOPEFUL SIGNS NOTWITHSTANDING TODAY BUT 10 YEARS, FIVE YEARS, COMING DOWN A LITTLE BIT AND MAKING HOME BUYING A LITTLE MORE POSSIBLE. AND THIS HELPS THE ECONOMY. SO I THINK WE HAVE BEEN IN A PRETTY GOOD SPACE. I LOOK AT THE REACTIONS OF THE REPORT TODAY AS BEING SOMEWHAT SOMEBODY DUED AND POSSIBLY -- SUBDUED AND POSSIBLY A GOOD SIGN. KATIE: I WANT TO GET YOUR OPINION ON THE GEOPOLITICAL FRONT. YOU THINK OF ISRAEL’S ATTACK ON HAMAS AT THE TALKED ABOUT THIS MORNING IN DOHA. WE ARE HEARING FROM KATTAR, SAYING THAT NETANYAHU IS LEADING THE REGION TO IRREPARABLE LEVELS AND ISRAELI ATTACK IN DOHA IS A PIVOT PIVOTAL MOMENT. THERE ARE A LOT OF HOT WARS UNDER WAY, NOT SOMETHING THAT SEEMS TO BE IMPACTING THE EQUITY MARKET OR EVEN THE OIL MARKET WHERE YOU MIGHT EXPECT MORE REACTION. WHERE DO YOU SIT AS A CO--CIO. HOW DO YOU THINK OF THEM AND HOW THEY PLAY OUT IN MARKETS? > > IT IS PROBABLY SURPRISING TO PEOPLE WHAT DOES AND DOESN’T IMPACT STOCK MARKETS AND THEIR INVESTMENTS. IT IS SORT OF A KNOWN FEATURE OF THE STOCK MARKET THAT WE OFTEN DON’T SEE A LOT OF IMPACT ON STOCK RETURNS SO TO THE EXTENT IT WILL SHOW UP IT WILL PROBABLY BE IN OIL PRICES. WE ARE NOT SO MUCH SEEING THAT. WE HAVE LOOKING AHEAD A COLD WINTER BUT WE HAVE BEEN IN THE MIDST OF TWHESE WARS AND IT IS NOT ATYPICAL THEY DON’T TEND TO HAVE DIRECT IMPACT ON STOCK MARKETS BECAUSE OWNER THE OIL CONNECTION AND IT IS AN ODD THINK BECAUSE YOU ARE WATCHING SOMETHING FROM A HUMAN PERSPECTIVE HAS A MAPHMASTER -- MASSIVE IMPACT. ROMAINE: YOU CAN SEE AT THE BOTTOM OF YOUR SCREEN WE ARE KEEPING AN EYE ON COMMENTS BY THE PRIME MINISTER IN QATAR RESPONDING TO THE ATTACK THAT HAPPENED EARLIER TODAY. NETANYAHU OF ISRAEL SAYING THIS WAS A TARGETED AND PRECISE TARGET EVEN WHAT IT SAYS WAS HAMAS LEADERSHIP THAT THEY SAID WERE IN A BUILDING IN THE CAPITAL OF QATAR, DOHA. THE PRIME MINISTER CALLING THE ATTACK TREACHERY AND SAYS IT DOES HAVE THE OPTION OF RETALIATING IN SOME WAY. WE WILL KEEP AN EYE ON THAT STORY. BUT THIS IS STILL A MARKET THAT IS MORE FOCUSED ON MACROECONOMIC CONDITIONS AND BOTTOM LINES OF CORPORATE AMERICA. WE WILL GET SOME EARNINGS AFTER THE BELL TONIGHT INCLUDING ORTH ORACLE. KATIE: THEY ARE HAVING A FANTASTIC 2025 UP 46% ON A TOTAL RETURN ONE OF THOSE BIG TECH COMPANIES POWERING THIS MARKET TO WHAT LOOKS LIKE ANOTHER RECORD HIGH TODAY. WE ARE THROUGH EARNINGS SEASON AND THAT WITHIN -- WIONE WENT THROUGH WITHOUT A HITCH. WE TALKED ABOUT WHAT IS HAPPENING IN THE MARKET DOESN’T AFFECT THEM. > > WE BRING IN TO THE CONVERSATION BAILEY WHO HELPS TO LEAD OR MARKETS COVERAGE JOINING US IN NEW YORK AND IN MIAMI JONATHAN LEVIN. WHEN YOU LOOK AT THE MARKET AND ALL THE THINGS THAT COULD BAT IT AROUND FROM APPLE’S ANNOUNCEMENT TO QATAR AND THE B.L.R. REVISIONS DOES IT LOOK LIKE YOU WILL HOLD -- CLOSE WITH A RECORD HIGH. > > AS YOU ARE ALLUDING TO, THE TECH STORY KEEPS POWERING US HIGHER. IT IS KIND OF AGNOSTIC. WE WILL SEE WHERE THINGS GO WITH THE INFLATION NUMBERS WITH P.P.I. AND C.P.I. THURSDAY. THAT COULD CHANGE THE FED NARRATIVE IN THE REST OF THE MONTH. ROMAINE: THE DOW JONES INDUSTRIAL AVERAGE A CLOSE AROUND 45,711, S & P 500 6512 AND CHANGE A RECORD. NASDAQ COMPOSITE UP .4%. BUT WE TALKED ABOUT THE LAGGARD IS DOW TRANSPORTS DOWN .8%, S & P MID CAPS DOWN .9% AND RUSSELL 2000 DOWN A HALF OF A PERCENTAGE POINT. KATIE: LET’S LOOK AT THE BIG CIRCLE HERE. YOU CAN SEE A LOT OF GREEN ON THIS SCREEN. YOU HAD EIGHT OF 11 SECTORS FINISH IN THE GREEN EVEN THOUGH ON THE INDIVIDUAL STOCK LEVEL YOU HAD SUPPORT LOSERS IN WINNERS BUT WHAT IS WAS BEING DRIVEN BY COMMUNICATION SERVICE FOLLOWED BY UTILITIES AND HEALTHCARE. ON THE DOWN SIDE YOU HAVE MATERIALS AND INDUSTRIALS AND REAL ESTATE IN THE REDS. THE TECH SECRETARY -- SECTOR WAS ABOUT FLAT. ENOUGH TECH FAMOUS HIGHER THAT AS A SECTOR PRETTY FLAT. > > YOU MENTIONED IT UP MORE THAN 8% BIGGEST SINCE AUGUST, HIGH LEVEL SINCE MAY. AS UNITED HEALTH ESTIMATED MEDICARE STAR RATINGS WOULD BE BETTER THAN EXPECTED AND THAT IS A GOLD STAR FOR UNITED HEALTH AND SOMETHING DRIVING IT BETTER THE BEST DAY SINCE THE MIDDLE OF LAST YEAR AND A SMALLER LESS THAN IS A STOCKEN ALMOST 50% AFTER A DEAL WITH MICROSOFT DEDICATING A.I. COMPUTING CAPACITY AT LEAST WORTH 7.4 BILLION THROUGH 3031. ROMAINE: I WILL MENTION A CLOUD SOFTWARE ROSE ABOUT 1%. LAST WEEK THERE WAS A RECORD THAT SAID STARBOARD IS TAKING A STAKE BUT ELLIOT MANAGEMENT IS ALSO BUILDING A STAKE. THEY HAVE BUILT A STAKE OF AT LEAST 5% SO THE SHARES ARE UP 5% IN THE AFTER HOURS. WE ARE GETTING SOME EARNINGS OUT OF GAME STOP. KATIE: IT LOOKS LIKE SECOND QUARTER ADJUSTED E.P.S. WAS 25 CENTS, NET SALES FOR THE SECOND QUARTER AT $972 MILLION, A 22% YEAR OVER YEAR GAIN. YOU SEE WHAT THE SHOWERS ARE UP A LITTLE BIT. THIS LOOKS LIKE GOOD NEWS FOR ONE OF YOUR FAVORITES. SKWRA > > CAN’T STOP ONE STOP GAME STOP. TE 28-ISH MILLION DOLLARS. BEATING EXPECTATIONS PRETTY SHARPLY. THIS IS ONE OF MY FAVORITES, MAYBE NOT TRADING ON FUNDAMENTALS BUT TRADING ON FUN. ROMAINE: YOU ARE NOT A L AMP BBB GUY. ONE OF THE BIG STOCKS OUT THERE HAVING A GREAT FEW MONTHS. YOU WERE LOOKING AT SOME DECLINERS IN THE U.S. MARKET. > > LET’S START WITH FOX CORP WE WERE TALKING ABOUT THIS. CLOSING DOWN 6.7%. NEWS CORP. RELATED GOING DOWN 4.6%. AS WE KNOW THE MURDOCK FAMILY DRAMA DISCLOSING SETTLEMENT MONDAY TO END THE FAMILIAR SUCCESSION STORY. LACHLAN MURDOCK ENDS UP AS THE UNDISPUTE UNDISPUTED LEADERS OF THE BUSINESS BUT WHY ARE THEY MOVING. NEW SHARES ARE BEING SOLD AT A DISCOUNT TO FUND THE SIBLINGS’ TRUST SO THAT DETAIL SORT OF EXPLAINS WHAT IS GOING ON. TO MINING, COPPER MINING IN PARTICULAR, FREEPORT MAC MA RAN HAD AN EPISODE OF AN INDONESIA LINE LEAVING A NUMBER OF WORKS APPARENTLY TRAPPED BUT APPARENTLY SAFE. OPERATIONS WERE HALTED AT THE GRASSBURG MINERALS DISTRICT SO WE HOPE EVERYONE IS ALL RIGHT THERE. ROMAINE: I NEED TO INTERRUPT YOU ORACLE EARNINGS COMING IN WITH FISCAL FIRST QUARTER ADJUSTED RELATIVE IN LANE WITH -- IN LINE. 14.93 BILLION AND THE STREET WAS LOOKING FOR ABOUT 15 BILLION. CLOUD TRUR IN LINE WITH ESTIMATES. THAT IS THE HEADS LANE CROSSING THE -- HEADLINES CROSSING AS THEY BUILD OUT ITS PROCESS AND INVOLVEMENT IN THE A.I. DATA CENTER BUILD OUT. JUST A MISS BY WITHIN PENNY. -- BY ONE PENNY. KATIE: TRADERS CURRENTLY SENDING THE STOCK HIGHER. LET’S GET TO OTHER EARNINGS. SYNOPSIS A LOOK BEHIND TARGET REVENUE 1.74 BILLION, THAT IS 14% YEAR OVER YEAR. ADJUSTED E.P.S. AT $3.39 VERSUS $3 $3.43. DOWN ABOUT 5% WITH THE SHARES FOR WHAT THEY SEE WITH FOURTH QUARTER ADJUSTED E.P.S. SEEING THAT BETWEEN $2.76 TO $2.80. THE ESTIMATE WAS FOR $4.54 SO CERTAINLY A MISS. YOU LOOK THROUGH THE FOURTH QUARTER BETWEEN 22.23 BILLION TO 2.6. THE ESTIMATE WAS 2.1 BILLION BUT THAT FOURTH QUARTER ADJUSTED MIGHT EXPLAIN THAT. ROMAINE: WE WILL STAY IN THE TECH SPACE PROVIDING SUBSCRIPTION REVENUE JUST SLIGHTLY ABOVE ESTIMATES AT .25 BILLION. THE STREET WAS LOOKING FOR 1.22. THE TOTAL REVENUE CAME IN ABOVE ESTIMATES STILL POSTING A LOSS PER SHARE AT 3 CENTS BUT WAY BETTER THAN WHAT THE STREET EVANS LOOKING FOR THE MAYBE THAT -- MAYBE THAT EXPLAINS. THEY ARE RAISING THE OUTLOOK FOR FISCAL 2026. I WANT TO GIVE YOU ABOUT THE A.I. TRADE AND HOW MUCH MOMENTUM IS LEFT. WE HAVE SEEN ORACLE, RAOB RICK AND STPHOP -- RUBRIC AND SYNOPSIS. > > IT SEEMS LIKE IT IS THERE. ORACLE UP 11% POST MARKET. THIS IS NOT TRADING ON HOPE. THE BIG QUESTION WILL BE INFLATION DATA AND HOW DOES THE ECONOMY SHAKE OUT. YOU LOOK AT THE TRUE CORPORATE STORY IT IS SEEMINGLY VERY STRONG. ROMAINE: ORACLE SHARES THE BIGGEST GAINER. THANKS FOR YOU STICKING AROUND. THIS IS BLOOMBERG. KATIE: WELCOME BACK TO "THE CLOSE." . ROMAINE: WE ARE ON A RECORD SETTING DAY NOR THE S & P 500 -- FOR THE S & P 500 AND DOW. INVESTORS SHOW SOME DEGREE OF CONFIDENCE THAT DESPITE THE WEEKENING OF THE CONDITIONS CUTS ARE ON THE WAY. SMALL CAP AND MIDCAP NOT SO SURE ABOUT THAT SCENARIO AND GEOPOLITICS BEEN FRONT AND CENTER. THE MOVE IN BRENT CRUDE MORE MO MODEST. KATIE: WE HAD A LOT OF AFTER-HOURS EARNINGS. GAME STOP HIGHER BY ABOUT 1 % SOME BRIGHT SPOTS BUT IT TRADES ON FUN. SYNOPSIS SHARES DOWN, FOURTH QUARTER REVENUES BEAT ESTIMATES. CAN’T SAY THE SAME FOR ADJUSTED E.P.S. SO SENDING SHARES. RUBE REC A LITTLE HIGHER -- RUBRIC A LITTLE HIGHER. ORACLE,ABOUT 77% TO 8 BILLION IN FISCAL YEAR 2026. ROMAINE: NICE READ ON THE AFTER-HOURS TRADE. APPLE SHARES MOVING LOWER IN AFTER-HOURS AFTER DROPPING 1.5% AFTER THE COMPANY INTRODUCED THE NEW I PHONE LINEUP AND SMART PHONES AND UPDATE OF AIRPODS. WE LEARNED WHAT TO EXPECT AND WE GOT WHAT WE WERE EXPECTING. WHEN YOU LOOK AT THE PRE PRESENTATION, HOW THEY PITCHED THE USE, WHERE WILL THE UPTICK BE FROM THE CONSUMER? > > I THOUGHT IT WAS A CO-HERE KEYNOTE AND DID A GOOD JOB FROM A MARKETING PERSPECTIVE. THE IPHONE AIR HAS A SERIES OF DRAWBACKS THAT MAKE IT IMPRACTICAL. WI WITHIN CAMERA. JUST ONE SPEAKER IN THE EAR SPECIALTIES SO THIS IS NOT A PHONE THAT PEOPLE SHOULD BE GOING OUT TO REPLACE THEIR HIGH END I ALFONSO -- PHONES BUT THEY PITCHED IT AS SOMETHING SUPER COOL SO THEY ARE NOT POSITIONING IT WERE DIFFERENTLY THAN THE MACBOOK ERA 20 YEARS SO I THINK IT WILL DRUM UP SOME SALES BUT FOR ME PERSONALLY I THINK THE NEW I PHONE 17 PRO MAX IS HOT. SIX HOURS OF BATTERY BREEZE. THE 16 PRO AND 15 PRO HAD THIS TITANIUM THAT COULD OVERHEAT IN YOUR HAND. THEY FINALLY FIXED IT WITH THE 17 PRO. I LOVE THE ORANGE COLOR THE DEEP COLOR IS COOL AND I PHONE 17 IS $800, NO PRICE HIKE. SO FAR, SO GOOD. KATIE: I WANT TO TALK ABOUT THE AIRPODS PRO 3. WE SAW SHARES DROP 5% AFTER WE SAW IT WILL HAVE LIVE TRANSLATION CAPABILITY. TELL US WHAT WE LEARNED THERE. > > WE REPORTED ABOUT SIX MONTHS AGO THESE LIVE TRANSLATION FEATURES ARE COMING. I THINK THEY ARE GOING TO BE QUITE USEFUL. ESSENTIALLY, TWO PEOPLE WHO SPEAK DIFFERENT LANGUAGES WEARING AIRPODS THEY WILL HEAR EACH OTHER IN THEIR NATIVE TONGUE. SAMSUNG AND GOOGLE HAD THIS FOR A WHILE. APPLE INTRODUCED IT IN JUNE AS PART OF I.O.S. AND SO THIS IS NOT NEW. THE HEART RATE SENSE OR THEY HAVE THE SOMEBODY DESCRIPTION AND THIS COULD GET PEOPLE HOOKED ON THE HEALTH IDEA AND MAYBE UPGRADE TO AN APPLE WATCH SO A PRETTY NIFTY EFFORT TO THE AIRPODS PRO AND WHO CAN FORGET THE APPLE WATCHES. FIRST END TO END REVAMP. THE S.C. AT $250 BETTER UPGRADE. THE EXTRA -- THE ULTRA SATELLITE CONNECTIVITY SO IF YOU ARE LOST IN THE WILDERNESS AND LIKE YOU CAN GET EMERGENCY SERVICE FROM THE WATCH AND HYPERATTENTION BACK DATED FROM TWO YEARS AGO OVER A 30-DAY PERIOD. KATIE: I RUN STRAIGHT IT THE WOODS AND DON’T LOOK BACK BUT I’M EXCITED FOR YOU, MARK. REPORTING LIVE ON APPLE’S BIG CHARDE. LET’S TURN BACK TO SHARES OF ORACLE BECAUSE THEY ARE SUMMERING. -- SURGING. WE HAVE THE HEAD OF TECHNOLOGY RESEARCH RIGHT NOW. FIRST QUARTER ADJUSTED REVENUE DIDN’T MEET ESTIMATES. IT SEEMS LIKE A LOT OF THE ENTHUSIASM IS WHAT AT THE SEE WHEN IT COMES TO CLOUD INFRASTRUCTURE REVENUE AT 8 BILLION IN 2026. > > THEY LAID OUT A PATH WHERE ORACLE CLOUD -- I WILL HAVE TO REREAD IT TO MAKE SURE. IT GETS TO 44 BILLION WITHIN FIVE YEARS. THAT WOULD BE IN LINE WITH SOME OF THE HYPER SCALERS. WE WILL HAVE TO MAKE SURE WE UNDERSTAND WHAT THOSE NUMBERS REFER TO BUT THAT IS WHAT INVESTORS ARE GETTING EXCITED ABOUT A ROAD MAP OF ORACLE CLOUD TO BE ALMOST ALL OF ITS BUSINESS. IT HAS TO INCLUDE A LOT MORE BUSINESS FROM MICROSOFT, MAYBE DESIGN AND GOOGLE, TO MAKE SENSE OF THAT. BUT THAT IS WHAT INVESTORS ARE IMPRESSED WITH. ROMAINE: WE ARE TALKING ABOUT A COMPANY GENERATING ANNUAL REVENUE IN THE $60 BILLION RANGE. THE INFRASTRUCTURE REVENUE WILL GROW TO 8 BILLION THIS YEAR. ON TO 44 BILLION OVER THE SUBSEQUENT YEARS. THAT THAT IS PHENOMENAL. WHEN YOU LOOK AT WHERE THE SPENDING IS COMING FROM, WHERE IS IT COMING FROM? > > REALLY, THE BASE OF IT IS ALL OF US USING CHAT PGT MORE,THE MORE WE USE A.I. CAPABILITIES THE MORE THEY ARE COMPUTE INTENSIVE SO ALL THE PROVIDERS WHICH RIGHT NOW PRIMARILY GOOGLE, ONLY A.I. AND ANTHROPIC ARE BOOKING AHEAD A LOT OF CAPACITY. SOME IS THROUGH MICROSOFT WHO IS BOOKING IT THROUGH, SAY, COREWEAVE AND SOME IS FROM OPEN A.I. THROUGH STAR GATE. BUT ALL IT BOILS DOWN TO IS WE ARE USING A.I. SO MUCH MORE THAN IT IS GIVING ALL OF THESE COMPANIES D CONFIDENCE TO COMPUTE CAPACITY AND ORACLE HAS DONE A FACULTY JOB OF RAMPING UP CAPACITY AND BEING ABLE TO COMMIT TO THAT WERE MORE G CAPACITY AND THEY ARE GETTING A LOT OF THESE CONTRACTS. KATIE: YOU SEE SOME OF THE COMMENTS FROM THE C.E.O. OF ORACLE SAYING THEY SIGNED FOUR MULTIBILLION DOLLAR CONTRACTS IT THREE DIFFERENT CUSTOMERS IN THE FIRST QUARTER AND THERE’S A BIGGER QUESTION IF YOU WANT TO BE PESSIMISTIC. WE COULD BE SEEING AN OVER-BUILDING WITH INFRASTRUCTURE. ONE OF THESE BEARISH CASES THAT COMES UP WHEN IT COMES UP TO SOME OF THESE NAMES. DO YOU PUT WERE STOCK IN THAT? > > ABSOLUTELY. THERE’S A HUGE COMPETITION, RIGHT? THE HYPER, MICROSOFT, AMAZON, GOOGLE ARE COMPETING FOR DATA CENTER CAPACITY. WE HAVE EARS. AND THEY ARE COMPETING FOR CAPITAL. WE ARE NOT GOING TO BUILD OUT THIS CAPACITY WITH THE DOLLARS. MOST OF THE DOLLARS IN CAP EX WILL BE DEAD DOLLARS AND RIGHTS NOW THERE’S GOING TOEN -- TO BE AN EXPLOSION OF DEBT TO FUND THESE DATA CENTERS. SO A LOT FOR THE BUILDINGS, ELECTRICITY, CAPITAL REQUIRED TO BUILD THEM SO THE PROJECTIONS ARE VERY ROSY AND THEY ARE SAYING THEY ARE IN THE BACKLOG BUT IT IS AN CLEAR THAT ALL OF THESE DATA CENTER BUILDERS CAN BUILD ALL OF THIS CAPACITY ALL AT ONCE AND HAVE THE ABILITY FOR THOSE SCARCE RESOURCES. ROMAINE: THANKS FOR TAKING TIME WITH US. ORACLE SHARES,20% RIGHT NOW. THIS WOULD BE THE BIGGEST POSTEARNINGS POP FOR THAT STRONG BACK TO AT LEAST EARLY 2020. WE WILL STAY ON ORACLE AND A.I. AND WHAT IT MEANS FOR THE BROADER ECOSYSTEM. MER MEREDITH BROUSSARD WILL TELL US ABOUT THE CHALLENGES WHEN IT COMES TO COPYRIGHTS. THIS IS "THE CLOSE" ON BLOOMBERG. ROMAINE: APPLE THE LATEST TECH GIANT TO FACE A COPYRIGHT OVER USING BOOKS TO TRAIN THE A. MODEL. IT IS A QUESTION OF FAIR USE OR NOT. THAT IS BECAUSE ANTHROPIC SETTLED OVER SIMILAR CLAIMS. YOU HAVE BEEN DOING A LOT OF RESEARCH INTO THE WOMAN IDEA OF I -- WHOLE IDEA OF WHAT THE A.I. COMPANIES THINK THEY HAVE THE RIGHT TO USE. TOP ABOUT THE ANTHROPIC SETTLED BECAUSE A.I. MODELS WERE USING THEIR CONTENT WITHOUT PERMISSION. MEREDITH: IT IS NOT JUST ABOUT COPYRIGHT BUT PIRACY. MACHINE LEARNING MODELS OR TRAINED ON HUGE DATA SETS. ANTHROP YIC KNOWINGLY USED A PIRATED DATA SET AND IT CONTAINED HUNDREDS OF THOUSANDS OF BOOKS, MILLIONS OF BOOKS. IT DEPENDS ON WHICH DATA SET BUT AT ANY STRAIGHT USING KNOWINGLY PIRATED DATA SETS SOMETHING THAT ALL OF THE BIG A.I. -- ROMAINE: THERE IS WIDESPREAD? MEREDITH: IT IS BECAUSE THERE ARE NOT THAT MANY BIG DATA SETS FOR TRAINING THESE HUGE MODELS. THERE IS SOMETHING CALLED THE COMMON CRAWL WHICH IS WHAT EVERYONE USES, IT IS JUST A CRAWL OF ALL OF THE AVAILABLE WOULD BE PAGES ON THE INTERNET AND NOT MANY PEOPLE ARE MAKING THAT KIND OF DATA SET. THESE SORTS OF CASES AND THIS BRINGS US TO THE COPYRIGHT CLASS ACTION APPLE WAS HIT WITH. IT SOUNDS LIKE THIS IS MAYBE THE WAY OF THE WORLD THAT WE WILL SEE MORE OF THESE CASES. MEREDITH: WE ABSOLUTELY ARE BECAUSE ALL OF THESE COMPANIES, IF THEY ARE USING PIRATED DATA, THEY HAVE BROKEN THE LAW. IT IS CRIMINAL BEHAVIOR. ONE THING I HEARD ARCED IS ANTHROP KWRBG FOR .35 BILLION BECAUSE IT WAS GOING TO BE EXTRAORDINARILY EXPENSIVE TO PAY OUT A COPYRIGHT CLAIM SO THEY ARE PAYING $3,000 TO EACH OF ABOUT 500,TO YOU AUTHORS. IF WE LOOK AT THE PIRATE DATA SETS, THEY HAVE DIFFERENT NAMES LIKE RED BANANA AND IF YOU LOOK AT EACH OF THOSE PIRATED DATA SETS AND HOW MANY BOOKS AND AUTHORS ARE EACH OF THEM YOU HAVE MILLIONS. IF YOU ARE PAYING HUNDREDS OF THOUSANDS OF DOLLARS TO MILLIONS OF AUTHORS, .5 BILLION LOOKS SMALL. ROMAINE: THAT IS KIND OF WHAT YOU’RE SUPPOSED TO. WE KNOW THERE’S THE DEBATE AND IT IS FAIR USE. YOU CAN USE CERTAIN CLIPS AS LONG AS THEY ARE IN SERVICE OF TELLING A STORY WITHOUT TRYING TO PROFIT. IS THAT NOT WHAT THEY WERE DOING? > > THIS IS STILL WORKING ITS WAY THROUGH THE COURT. THERE WAS A RULING RECENTLY THAT SAID THAT USING COPYRIGHTED MATERIALS TO TRAIN A.I. CAN BE FAIR USE BUT IN THIS CASE IT WAS ABOUT HAVING USED STOLEN DATA AND PROFITED OFF IT. KATIE: WE HAVE TO LEAVE IT THERE. HOPE TO HAVE YOU BACK SOON. MEREDITH BROUSSARD PROFESSOR OF N.Y.U. THIS HITTING THE HEADLINES THE SUPREME COURT WILL REVIEW PRESIDENT TRUMP’S ON A FAST TRACK THE TARIFFS ON A FAST TRACK SCHEDULE. WE’LL SEE IF WE GET ANSWER THERE IS SOON. ROMAINE: I WANT TO POINT OUT THE ARGUMENTS ARE SET FOR EARLY NOVEMBER SO POTENTIALLY A DECEMBER WE COULD LEARN ABOUT OF THE END OF THE YEAR. THIS IS BLOOMBERG. > > WE HAD AND UNPROVOKED AND UNION LATERAL TAKE BY ISRAEL AGAINST HAMAS LEADERS IN DOHA DRAWING WARNINGS FROM THE WHITE HOUSE SAYING THE ATTACK DIDN’T EVEN ADVANCE U.S. OR ISRAELI GOALS. THE PRESIDENT OF THE UNITED STATES TAKING TO TRUTH SOCIAL SAYING IT WAS NOT A DECISION MADE BY HIM AND THE WARNINGS ARE COMING FROM TRUMP’S SURROGATES CAME A LITTLE TOO LATE TO STOP IT AND PRIME MINISTER SAYING THIS WON’T STOP THE MEDIATION ROLE QATAR HAS PLAYED IN THAT REGION. WAYNE, GIVE US A LITTLE CONTEXT. KATTAR HAS BEEN SEEN AS THE SWITZERLAND OF THE MIDDLE EAST. IT WAS NOT TAKING SIDES BUT TRYING TO FACILITATE TO BE THE GO BETWEEN BETWEEN ISRAEL AND HAMAS AND OTHER TERRORIST GROUPS THE IDEA THEY CAN BROKER A PEACE DEAL. WHAT HAPPENED THIS MORNING? > > I AGREE WITH YOU. I THINK IT IS INTERESTING. QATAR HAS PLAYED A STRATEGIC PARTNERSHIP ROLE WITH THE UNITED STATES SINCE 1972, A KEY MEDIATOR IN THE MIDDLE EAST. THAT IS ONE OF THE AREAS NEED UNITED STATED FOR AFGHANISTAN IN THE PAST. THEY ARE A PHAEMAJOR MAJOR NON T-NATO. AND THEY HAVE ONE FR OF THE DEPLOYED AREAS SO IT IS USUALLY AN AREA AND SAY IT IS OK THAT WE JUST NORMALLY WOULDN’T TRY TO ATTACK. SO WE ARE A LITTLE SURPRISED BECAUSE IT IS ISRAEL ATTACKING A SOVEREIGN CAPITAL AGAINST A NON-BATTLEFIELD AREA. SOME THINGS HAVE HAPPENED IN THE PAST BUT NOT LIKE QATAR. KATIE: PRESIDENT TRUMP SEEMINGLY DISTANCING HIMSELF JUST SAYING IN THE LAST HOUR OR SO OR A COUPLE OF MINUTES AGO IT WAS A DECISION MADE BY PRIME MINISTER NETANYAHU. IT WAS NOT A DECISION MADE BY ME. TALK TO US ABOUT THE U.S. ROLE IN THIS WHEN IT COMES TO ITS RELATIONSHIP WITH SOME OF THE GULF STATES. > > I DEFINITELY THINK THIS WILL BE ONE OF -- YOU LOOK THE WAY THIS PARTNERSHIP IS SET UP WITH ISRAEL AND QATAR. YOU HAVE BOEING WITH F-15’S AND APACHES AND LOCKHEED WITH THE INTERCEPTORS. THEN YOU HAVE ASIA STRATEGIC STRONGEST ALLY BIPARTISAN GROWTH AND QATAR HAVING LIQUID NATURAL GAS. YOU PUT TOES PIECES TOGETHER -- THROWS PIECES TOGETHER AND YOU HAVE SOMETHING WE HAVE NOT SEEN BEFORE. KATIE: REALLY APPRECIATE YOUR INSIGHT. SENIOR RESEARCH DEFENSE ANALYST AT BLOOMBERG INTELLIGENCE. LET’S BRING THE CONVERSATION TO KPH COMMODITIES. TRADERS SEEMINGLY BRUSHING OFF OPEC STARTING TO REVIVE THE PREVIOUSLY HALTED SUPPLY LINE. LET’S TALK SPECIFICALLY ABOUT OIL. THIS IS A CONVERSATION WE WERE HAVING AT THE TOP OF THE SHOW THAT THIS MARKET, OIL SPECIFICALLY, DONATE EVER SEEM TO BUILD IN A RISK PREMIUM. I WONDER WHAT YOU MAKE STAFF IN THE CONTEXT OF WHAT WHRAOERPBED. IT IS IMPORTANT TO CONTEXTUALIZE IN THE BROADER MACRO BACKUP. IT COMES DOWN TO WHETHER WE’VE SEASON DSUPPLY DISRUPTIONS AND THE MARKETS IS OVERSOLD TO AN EXTENT WE HAVE NOT SEEN IN MANY YEARS. SO EVEN THOUGH THE CONSENSUS IS FOR PRICES TO MOVE HER WE HAVE STARTED TO SAEE SEE SURPLUS IN BALANCES. IT IS HARD TO SEE PEOPLE PUTTING ON SHORTS BECAUSE THERE IS A UP SIDE ROEURBGS WITH THE RUSSIA AND UKRAINE. IT IS MORE OF A POSITIONING STORY AND THAT IS WHY THE MARKET IS RELUCTANT TO SELL BUT THE BEARISH VIEW REMAINS INTACT. KATIE: IT COMES BACK TO THE MACROECONOMICS AND YOU LOOK AT BONDS BEING SOLD, EQUITIES RALLYING TO ALL TIME HEYS. > > TANK THIS IS KIND OF -- I THINK THIS IS THE EXIT AT THE LABOR DAY, ALWAYS LOOKING FOR A NEW THEME AND THIS TIME IT IS THE FED WITH THE WEAKNESS IN THE LABOR MARKET BUT THERE’S A CAVEAT THIS YEAR BECAUSE IT LOOKS A BIT LIKE LAST YEAR, WEAKER PAYROLL. FED USED TO CUT. IT IS DIFFERENT BECAUSE OF THE FED. ROMAINE: WHEN WE TALK ABOUT THE FED WE STARTED WITH THE LOOK AT SOME OF THE REVISIONS IN A LABOR MARKET THAT WE KNOW WAS A LITTLE WEAKER THAN WHAT WE THOUGHT THE LAST YEAR. YOU HAVE P.P.I. TOMORROW AND C.P.I. AFTER THAT. THEY HAVE TO THE BUDGED AT LEAST NOT TO THE DOWN SIDE THE FED COULD HAVE LIKED. IS THERE ANYTHING THAT COULD CHANGE WHAT THEY DO NEXT WEEK? > > I THINK SWEETERING UP FOR A STAGFLATION LIKE SITUATION MEANING INFLATION A LITTLE HIGHER, NO GROWTH, TAPERING OFF BUT THE FED IS STILL LEANING TO THE FEDERAL SIDE SO I DON’T THINK WE WILL SEE ANY REACTION. I THINK 25 BASIS POINTS NEXT WEEK IS A LOCK. IT WILL TAKE A LOT FOR THE FED TO MASTER TO SAY WE ARE NOT GOING TO CUT OR WE ARE CUTTING 5. MAYBE A VOLATILITY INDUCER. I’M IN THE CAMP I THINK BONDS IS RAEALLY KIND OF UNDERESTIMATING THE RISK AHEAD OF US PARTICULARLY ASSOCIATED WITH FED INDEPENDENCE. I THINK THAT IS A SOVEREIGN RISK ELEMENT. ROMAINE: YOU THINK THE BOND MARKET IS UNDERPRICING THAT? > > YES. ROMAINE: WHAT IS THE EQUITY MARKET DOING? WE JUST HIT A HIGH ON THE S & P. > > HERE IS MY DEAL. I THINK EQUITIES ARE PLAYING TO A COMPLETELY DIFFERENT DRUM. WE HAVE SEEN IT WITH THE TECHNIQUE TON KWRBG SHIFT HOW THEY MANAGE THE WEALTH. WEALTH. IF YOU LOOK AT JEN Z’S 20 YEARS AGO THE FIRST THING YOU WANTED TO DO IS BUY A HOUSE. NOW YOU WANT TO BE ON ROBIN HOOD AND SELLING OPTIONS. SO UNLESS WE SEE A RECESSION OR THE LABOR MARKET WE ARE GOING THROUGH A SEASONAL PATCH WITH BUY BACKS TAPERING OFF A LITTLE BUT AS WE COME OUT STAFF LATE OCTOBER IT WILL BE FINE. IT IS FASCINATING WHEN YOU THINK OF RETAIL EXPLAINING THE DIFFERENT ATTITUDES OF THE EQUITY AND BOND MARKET BECAUSE YOU DON’T HAVE THE SAME BASE IN BONDS OR EQUIVALENT OF ROBIN HOOD. > > THIS DONESN’T EXIST. SO IT IS IMPORTANT TO REALIZE WE WILL SEE A DIFFERENT REACTION FUNCTION OVER THE NEXT FIVE TO 10 YEARS AS GEN Z’S CONTINUE TO PARTICIPATE IN THE MARKETS. WE HAVE BEEN HOLDING GOLD SINCE THE BEGINNING OF THE YEAR EVEN THOUGH IT IS UP 40%. IT IS A GREAT DIVERSIFIER BECAUSE IT IS CHECKING ALL THE BOXES. SO, INVESTORS HAVE TO KEEP AN EYE ON THAT GIVEN OF COURSE THAT IS GOING ON WITH FLOWS. ROMAINE: SPOT GOLD ANOTHER RECORD HIGH ABOVE THAT DRAWER 3,600 AND A THOUGHT WE COULD GET CLOSE TO $5,000. KATIE: WE HAVE SOME NOTABLE MOVERS IN THE AFTERHOURS, A LOT OF EARNINGS NAMES COMING OUT. SYNOPSIS MOVING WERE LOWER DOWN ABOUT 13%. RUBRIC A LITTLE LOWER OFF 2.5. GAME STOP UP ABOUT 4% BUT THE STAR IS WHAT IS GOING ON WITH ORACLE, NOW UP 22.6%. THIS IS A COMPANY THAT HAS A MAC CAP OF $68 BILLION. WE -- $ $678. ROMAINE: WE WERE TALKING ABOUT A COMPANY THAT GENERATED $60 BILLION AND CLOUD AI BUSINESS ALONE MIGHT ECLIPSE THAT THE NEXT COUPLE YEARS SAYING THAT COULD BE 8 BILLION THIS YEAR AND SURPASSING 00 BILLION FROM THAT UNIT ALONE. KATIE: DIZZYING NUMBERS. CALLING IT AN ASTONISHING QUARTER. ORACLE SHARES UP OVER 22% AFTER HOURS. THIS "THE CLOSE" ON BLOOMBERG. > > IT IS TIME FOR THE TOP THREE WHERE WE NAME DROP THE PEOPLE DRIVING SOME OF THE MOST STORIES. SEBASTIAN TAPPED BY MACRON AS THE NEW PRIME MINISTER, THE FIFTH IN ABOUT TWO YEARS SO WE WILL HAVE TO SEE HOW LONG HE LASTS. ROMAINE: I’M WATCHING ERIC TRUMP THE SON OF THE PRESIDENT HAS BEEN MOVED FROM A PLAN BOARD ACCORDING TO REPORT TOLLING THEIR CONSULTATION WITH THE NASDAQ WHICH RAISED CONCERNS. KATIE: THIRD WE HAVE THE TECHNOLOGY FIRM EXPECTED TO PRICE THE I.P.O. AS MUCH AS 1.7 BIL BILLION. IT IS WIDE OPEN. ROMAINE: WE KEEP AN EYE ON THAT AND WE GO TO FOOTWEAR. THIS COMPANY IS USING AI AND 3-3-D PRINTING IT MAKE THEIR SHOES. WE HAVE THE FOUNDER AND C.E.O. AND HE HAS BEEN WORKING ALONGSIDE A LEGENDS JOE FOSTER. GREAT TO HAVE YOU BOTH BACK ON THE PROGRAM. BEN, THE BIG EVENT IN TWAOEUR -- TIMES SQUARE. WHAT CAN I DO IN THE FUTURE I CAN’T DO TODAY? > > WE HAVE CREATED A FIRST OF KINDS EXPERIENCE. YOU CAN WALK ON TO A SCREEN, SCANS YOUR FEET AND MAKES A 3-D MODEL MORE THAN THE ONLINE SCANNING LIKE THE WAY YOUR TOES ARE SHAPED AND SAME INFORMATION YOU WOULD TALK INTO ACCOUNT WHEN MAKING CUSTOM ORTHOTICS. WE CAN GIVE YOU A SHOE FOUR TO SBECTION WELCOMES LATER -- FOUR TO SIX WEEKS LATER. IT IS A GAME CHANGER. THERE ARE PEOPLE WHO STRUGGLE TO GET PROPER FITTED SHOES AND WE HAVE A SOLUTION IN AN AREA WHERE PEOPLE CAN GET ACCESS. ROMAINE: GIVE ME A SENSE OF A BALANCE MAKING A DECISION ABOUT BUYING A PAIR OF SHOES VERSUS STYLING AND MAYBE FOR LACK OF A BETTER PHRASE THE MORE SUPER OFFICIAL THINGS THAT A -- SUPERVISOR OFFICIAL THINGS? > > WE ARE SEEING THE CHANGE AND WE HAVE POLITICS WHICH IS COMING INTO THIS AND SAYING IT IS WONDERFUL TO BE ABLE TO LOOK AT SOMETHING THAT WILL DISRUPT. WITH 3-D PRINTED YOU CAN DO THIS THINK WHERE SO YOU CAN DO IT IN AMERICA. IT IS CHANGING THE WAY PEOPLE LOOK AT PRODUCT. SNEAK SNEAKERS HAVE BEEN COMING ON FOR 50 YEARS AND THIS IS WHERE A 3-D PRINTSER IS MAKE -- PRINTER IS MAKING A DIFFERENCE. KATIE: HE IS MAKING A POINT THAT YOU CAN MAC THEM IN AMERICA -- YOU CAN MAKE THEM IN AMERICA. I HAVE TO IMAGINE THAT MAYBE IT ISN’T SOMETHING THAT YOU HAD IN MIND WHEN YOU SET OUT TO PRINTS 3-D SPEAKERS BUT HAS TO BE A BENEFIT. ENGINEER ACTIVELY THINKING ABOUT IT. WE BELIEVE THE APPROACH TO FOOTWEAR IS A WAY TO MAKE 100% AMERICAN MADE FOOT WEAR PRODUCT -- FOOTWEAR. YOU DON’T HAVE THE SAME LABOR. IT IS AN EASIER PROCESS. A LOT OF COMPANIES ARE TRYING TO FIGURE OUT PRODUCTION AND SHIFT IT FROM CHINA TO THE U.S. IS QUITE AN EFFORT. WE GET RID OF ONE OF THE BIG GEST ASSETS WHICH IS LABOR. YOU CAN PRINT OUT A SHOE AND JUST HAVE THE PROPER PROCESSES SO THIS CAN BE A GAME CHANGERED A WE ARE LOOKING INTO HOW TO PRODUCE IN AMERICA. EUKATIE: TALK ABOUT THE INTEGRITY OF THE SCHHOES. THEY BUY FOR STYLE, COMFORT AND SOME BUY THEM FOR PERFORMANCE. WHEN IT COMES TO 3-TKRD PRINTED USE CAN THEY WITHSTANDS THE ATHLETICS DEMANDS YOU MIGHT PUTS EVEN THEM? > > WE ARE NOT REALLY LOOKING AT THAT SIDE OF PERFORMANCE. WHAT WE ARE LOOKING AT IS HOW YOU CHANGE THE PHEFRDZ -- METHODS. LET’S GO BACK TWO RYBAK. WHEN WE STAR RED WHERE CAN WE GO TO MILWAUKEE -- MAKE A DIFFERENCE. 3-D FOR PRINTING AND A.I. THESE ARE THREE DIFFERENT AREAS WE CAN WORK ON. 3-D PRINTER IS NOT PARTICULARLY FAST AT THIS MOMENT AND THE BIG CONDITIONS CAN’T REALLY LOOK AT IT BECAUSE AT THE THAT HE HAD MORE VOLUME. WE CAN GET THE VOLUME WE NEED TO MAKE THE DIFFERENCE. IN DOING SO WE ARE LOOKING TO -- COME ON, GUYS, LET’S LOOK AT DEVELOPING THE 3-D PRINTER. TAKE THE TIME TO PRINT A SHOE WHICH IS ALMOST 12 HOURS, GET IT DOWN TO ONE HOUR. THIS IS DEVELOPING DIFFERENT METHODS. IT S TIS NOT FARMERS AS WE SEE THEM TODAY BUT AS WE MOVE IN THIS AREA WE ARE GOING TO LOOK AS THE DIFFERENT AREAS WHERE WE CAN BECOME PERFORMERS AS OPPOSED JUST CHANGING THE LANDS SCAPE OF SHOES THAT PEOPLE WEAR. ROMAINE: WHEN IT COMES TO ATHLETIC SHOES I’M CURIOUS WHAT PEOPLE. . COMPANIES OF NIKE AS A CRISIS CAN YOU GO AFTER THE FOLKS WHO WANT IT FOR FASHION OR DOUBLE DOWN FOR THE ATHLETES. > > I DON’T THINK WE CAN CHANGE THAT LANDSCAPE AT THE MOMENT. I THINK ATHLETIC SHOES WILL STILL COME FROM TRADITIONAL MANUFACTURING WHERE YOU HAVE DIFFERENT MATERIALS AND EXPERIMENTS WITH DIFFERENT RUBBERS. WHAT WE WOULD LIKE TO SAEE ESSENTIALLY IS BECAUSE THE LANDSCAPE IS CHANGING FROM SNEAKERS WHICH ARE STREET WE’RE LOOKING AT SLIDERS AND PEOPLE ARE LOOKING FOR FOOTWEAR THAT IS COMFORTABLE AND EASY TO WEAR AND WE ARE OFFERING SOMETHING WHICH IS A PERSONALIZED MEASUREMENT. THESE SHOES ARE CUSTOM MADE FOR YOU. IT IS LOOKING AS DIFFERENT AREAS WE CAN CHANGE THE STREET SHOES AND WHAT PEOPLE WANT. AS WE MOVE INTO THIS, WE CAN CHALLENGE YOU’RE PEOPLE LOOK WE WANT TO HAVE FEW VARIATIONS. WE LOOK AS PERFORMERS AND COMFORT. SO IS THIS A PROCESS. BUT MEANWHILE ESSENTIALLY IT IS PUTTING OUT TO THE PEOPLE -- THIS IS DIFFERENT -- AND TAKE THE JOURNEY. KATIE: LET’S TALK ABOUT PRICE POINTS. WHEN IT COMES TO THE CUSTOM 3-D PRINTED SHOES WHAT IS IT VERSUS THE COST OF BEING MADE THE OLD FASHIONED WAY. > > WE WORKED HARD WITH THE FIRST A.I. DESIGN SLIDE. WE WORKED IT DOWN TO PRODUCE A LOT. WE ARE ACTUALLY ABLE TO OFFER THE PMOST GENERATED A PRICE POINTS OF $189 FOR A FULLY CUSTOM MADE SHOE IT IS G COMPETITIVE. I HAD MY FEET SCANNED IN PERSON AND THE EXPERIENCE OF GETTING IT DONE WITH IT HIGH QUALITY SCANNER IS INCREDIBLE. YOU FEEL LIKE THE SHOE IS MADE FOR YOU AND GLOVE-LIKE EXPERIENCE AND YOU DON’T WANT TO TRY ANYTHING ELSE AFTER THAT. WE THINK HAVING A SUCCESSFUL PRICE POINTS IS 19. THE PREVIOUS ONE WAS $15. > > BEN WEISS BEING ADVISED BY GENTLEMEN FOSTER. WE WILL BE BACK IN A MOMENT AND IT CAN BE BUSIER ON WEDNESDAY. WE WILL SEE YOU UP FOR WHAT IT WATCH THE NEXT 24 HOURS. THIS IS BLOOMBERG. ROMAINE: IT WAS A BUSY DAY AN MARKETS AS WE MOVE INTO THE OVERNIGHT AND TOMORROW IT PROMISES TO BE BUSIER. WE START IN CHINA WHERE WE GET A READ ON THE INFLATION NUMBERS. > > AT 3:00 A.M. EASTERN BEING TUNE INTO THE EUROPEAN COMMERCIAL CREDIT GIVING THE STATE OF THE MARKET. ROMAINE: IF I’M UP I PROBABLY WON’T BE WATCHING BUT WE WILL HAVE FULL COVERAGE ON BLOOMBERG AND WE MAKE LIGHT OF IT BUT I WOULDN’T NECESSARILY CALL IT TURMOIL BUT SOME OF THE THINGS IN FRANCE, DENMARK, DIGITS ISSUES IN GERMANY. SHE HAS A LOT TO ADDRESS AND NOT NECESSARILY THE POWER TO SOLVE IT. EUKATIE: WE HAVE MORE EARNINGS PRE-MARKET AND INTERESTING CHECK EVEN THE PET ECONOMY. ROMAINE: AND WE TURN BACK TO THE UNITED STATES WHERE WE WILL GET A BETTER READ ON U.S. INFLATION, THE WE WILL SALE -- THE WHOLESALE PRODUCER PRICE NUMBERS. KATIE: ORACLE SHARES BEFORE WE GO THEY ARE UP 22.6% BOOSTING SOME OF ITS PEERS, NVIDIA AND CORE WEAVER HIGHER SETTING UP TO BE QUITE THE OPENING. ROMAINE: I FIND ORACLE ONE OF THE MORE FASCINATING SHOWS. LARRY ELLIS AND CLOSE CONNECTION HE HAS WITH TRUMP ADMINISTRATION PROVIDING AN OLD TECH ECONOMY STOCK. BALANCE OF POWER IS UP NEXT.

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Oil Rises on Israel’s Strike Targeting Hamas in Qatar | The Close 9/9/2025

Bloomberg Television brings you the latest news and analysis leading up to the final minutes and seconds before and after the closing bell on Wall Street. Today's guests are CIBC Private Wealth’s Rebecca Babin, Gabelli Funds’ John Belton, T-Mobile’s Srini Gopalan, Former US Bureau of Labor statistics Commissioner and Cornell ILR School’s Erica Groshen, Envestnet’s Dana D’Auria, D.A. Davidson’s Gil Luria, NYU Professor Meredith Broussard, Buffalo Bayou Holdings’s Frank Monkam, Syntilay’s Ben Weiss and Joe Foster. (Source: Bloomberg)

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"Bloomberg Markets" is focused on bringing you the most important global business and breaking markets news and information as it happens.
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