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00:00POTENTIALLY CALM WEEK ON THE FRONT. LIVE FROM STUDIO 2 AT BLOOMBERG HEADQUARTERS IN NEW YORK I'M ROMAINE BOSTICK. MATT: AND I'M MATT MILLER. ONCE AGAIN ALL-TIME HIGHS ON THE S & P 500. IF YOU LOOK AT THE NASDAQ, THE DOW JONES INDUSTRIAL, YOU WILL SEE THE SAME, THOUGH NOT THE RUSSELL BECAUSE SMALL CAPS HAD A ROUGH FRIDAY. BITCOIN IS OFF BY 2.5%. BUT AT $112,500, HIGH-LEVEL. GOLD CLIMBING TO 37.48 PER TROY OUNCE. A NEW ALL-TIME HIGH. AND THEN 4.14. WE SAW IT DROP FOR ONLY A FEW MINUTES BELOW 4% AND WE BOUNCED BACK. ROMAINE: THE PRICE IS WONKY AS SENTIMENT MOVES THE MARKET MORE GIVEN THE ABSENCE OF HARD ECONOMIC DATA OR CORPORATE EARNINGS THIS WEEK. TAKE MOVES IN THE SAFE HAVEN LIKE GOLD AT A RECORD HIGH. AND MOVES IN RISK ASSETS LIKE STOCKS AT A RECORD HIGH. THAT IS NOT SUPPOSED TO HAPPEN. THE CORRELATION TYPICALLY NEGATIVE WITH ONE RISING AS THE OTHER FALLS. GROWING BETS FOR MORE RATE CUTS COMBINING FOR STRANGE MARKET BEDFELLOWS. ALSO PLAYING OUT IN THE BOND MARKET WHERE AFTER FRONT RUNNING THE FIRST INTEREST RATE CUT IN NINE MONTHS, FIXED INCOME TRADERS RIDING INTO AHEAD. THEY ARE MORE INSULATED FROM RAPIDFIRE REVERSALS TO THE ECONOMIC OUTLOOK. MEANWHILE TRUMP'S NEWLY INSTALLED FED GOVERNOR MYRON MAKING SPECULATION MORE LAYERED. IN AN INTERVIEW HE DOWNPLAYED INFLATION CONCERNS AND MADE THE CASE FOR AGGRESSIVELY CUTTING RATES IN THE COMING MONTHS TO PROTECT THE LABOR MARKET PAIRED > > > > THE UPSHOT IS MONETARY POLYS ARE IN TWO PERCENTAGE POINTS TO TIGHT RISKS UNNECESSARY LAYOFFS AND HIGHER UNEMPLOYMENT. ROMAINE: NOT THE MOST SCINTILLATING SPEECH BUT SUBSTANCE WAS THERE. MATT: INTERESTING HE WANTS TO CUT RATE SO FAR BELOW WHAT MOST PEOPLE CONSIDER THE NEUTRAL RATE EVEN THOUGH IN HIS POSITION AS HEAD OF CEA HE HAS FORECASTED 4% GROWTH IN 2027. THIS IS ONE THING DRIVING THE MARKET. THE OTHER, EARNINGS CONTINUE TO POWER HIGHER THAN EXPECTATIONS. THIS IS THE EEG FUNCTION FOR THE S & P ON THE BLOOMBERG TERMINAL AND THIS IS CAME UP SO MUCH TO THAT IS EARNINGS GROWTH WE NEED TO COME UP TO DOUBLE IT -- DOUBLE DIGIT EARNINGS GROWTH. RIGHT NOW TRAILING AT MORE THAN 25 TIMES, NOT AS HIGH AS THE DOT COM BUBBLE BIT HIGHER THAN AVERAGE OVER THE PAST FEW DECADES. ROMAINE: A MOMENT IN THE MARKET, AN INFLECTION POINT WHERE IT PAYS TO LOOK INTO THE CHARTS AND THE DATA DEEPER. ONE GUY WHO DOES THAT BETTER THAN ANYONE, DIRECTOR OF GLOBAL MACRO JOINING US IN STUDIO 2 IN NEW YORK CITY. GREAT TO SEE YOU. WE TALK ABOUT A MARKET RECORD HIGHS, THAT SEEMS WE WILL CONTINUE TO HIT NEW RECORD HIGHS BUT IS CORPORATE FUNDAMENTALS AND EARNINGS SUPPORTIVE OF THAT? > > THEY ARE RIGHT NOW AND AS MATT SUGGESTED THE GROWTH RATE FOR THE EARNINGS ESTIMATE GOING INTO THE NEXT EARNING SEASON IS 7%. IT HAS BEEN THERE FOR A LONG TIME. TYPICALLY A GOOD BOUNCE THE LAST FEW QUARTERS. CHANCES ARE 7% WILL END UP AS DOUBLE DIGIT EARNINGS GROWTH. THE MARKDOWNS FROM THE TARIFF TANTRUM IN APRIL WHERE THE 2025 GROWTH RATE WENT FROM 12.5% TO 7% IS BACK TO 9.5% AND THAT IS WHAT WE NEED BECAUSE THE MARKET IS NOT CHEAP SO YOU NEED EARNINGS TO DO THE HEAVY LIFTING AND FOR THE FIRST COUPLE YEARS OF THIS BULL MARKET, ALMOST THREE YEARS OLD, IT HAS BEEN THE PE SIDE, UP 55% SINCE OCTOBER 2022. EARNINGS UP 22%. THEY NEED TO BRING IT UP. ROMAINE: HOW DO WE DO THAT IF UNDER THE ASSUMPTION THAT ECONOMIC CONDITIONS ARE NOT STRENGTHENING? JURRIEN: THERE ARE A NUMBER OF CROSSCURRENTS. WE HAVE TARIFFS ON THE BACK BURNER NOW, THE ONE BIG BEAUTIFUL BILL AND R & D EXPENSING IS A POWERFUL DRIVER FOR MARGINS, AT LEAST FOR LARGE-CAPS. WE HAVE THE AI BOOM, A VAGUE THING HARD TO QUANTIFY. AND WE HAVE THE JOBS MARKET, WHICH HAS BEEN SOFT IN THE LAST COUPLE MONTHS. ALTHOUGH THE RATIO OF JOBSEEKERS TO JOB AVAILABILITY IS IN BALANCE. IF YOU LOOK AT THE PENDULUM THAT KEEPS SWINGING FROM TIGHT LABOR MARKETS TO TWO MUCH LABOR DEMAND, IT IS HEADING IN THAT DIRECTION AND I THINK THE FED HAS HEEDED THAT SIGNAL WHEN IT CUT RATES A QUARTER-POINT. MATT: YOU TALK ABOUT FINANCIAL REPRESSION, WHAT THE FED AND THE GOVERNMENT IS DOING, THEY HAVE MASSIVE DEBT THEY NEED TO INFLATE THEIR WAY OUT OF. PART OF THAT IS WEAKENING THE DOLLAR. THAT IS A TAILWIND FOR U.S. CORPORATE EARNINGS? JURRIEN: FISCAL DOMINANCE, IT IS FISCAL POLICY THAT DRIVES THE BUS. IN ITS PUREST FORM MONETARY POLICY TAKES A BACKSEAT. THE 1940'S WAS A GOOD EXAMPLE, WHERE THE FED WAS NOT INDEPENDENT. IT ACTUALLY HELPED THE TREASURY FUND THE DEBT BY CAPPING RATES AT 2.5%. MATT: THE FED HAS BEEN NOT INDEPENDENT BEFORE. JURRIEN: NOT INDEPENDENT BEFORE 1951. BACK THEN CONGRESS SPENDS THE MONEY, TREASURY FINANCES THE DEFICIT, THE FED HELPS THE TREASURY DO THAT. OBVIOUSLY THE FED IS NOW INDEPENDENT AND WE ARE NOT IN FINANCIAL REPRESSION RIGHT NOW. MAYBE A YEAR FROM NOW IT WILL BE MORE OBVIOUS, OR LESS OBVIOUS. BUT AT THIS POINT I THINK THE FED IS CONDUCTING INDEPENDENT MONETARY POLICY, THERE IS NO QE. WE WILL SEE IF THAT CHANGES. MY SENSE IS NEUTRAL IS 3.75%, INFLATION IS 2.75%. I WOULD NOT CHARACTERIZE MONETARY POLICY AS RESTRICTIVE. I THINK IT IS NEAR NEUTRAL, PROBABLY WHERE IT SHOULD BE. ROMAINE: I'M HAVING A HARD TIME SEEING WHERE THE RESTRICTIVENESS IS. ON THE POINT OF INDEPENDENCE. TODAY IS THE 40TH ANNIVERSARY OF THE PLAZA ACCORD AND WE TALK ABOUT THE FED, TREASURY, CENTRAL BANK, FINANCE MINISTERS WORKING IN CONCERT TO ACHIEVE THEIR GOALS. I KNOW WE ARE NOWHERE NEAR THAT NOW ON A GLOBAL BASIS BUT IN THE U.S. THERE DOES APPEAR TO BE THE WHITE HOUSE TAKING THE WHEEL OR PUTTING THEIR HAND ON THE WHEEL IN A WAY, I DON'T WANT TO GET INTO WHETHER THAT IS GOOD OR BAD BUT I'M CURIOUS ON YOUR THOUGHTS ABOUT WHAT THE ATTENTIONAL OUTCOME MIGHT BE? SHOULD THE MARKET BETS ON A SOFTER DOLLAR AND LOWER RATES? JURRIEN: A SOFTER DOLLAR SEEMS LIKELY. WHENEVER A COUNTRY, WHETHER JAPAN IN RECENT DECADES OR ANY OTHER, TRIES TO CONTROL INTEREST RATES BY KEEPING MONETARY POLICY LOOSER THAN IS WARRANTED, CURRENCY GENERALLY TAKES A HIT BECAUSE YOU CAN CONTROL EVERYTHING. IN TERMS OF THE FED YOU CAN CONTROL LONG RATES TO SOME DEGREE BY DOING BALANCE SHEET EXPANSION, BUT YOU CAN'T CONTROL THE CURRENCY. THE DOLLAR SHOWS YOU THAT. YOU LOOK AT THE CHART OF THE DXY, IT IS FORMING A WEDGE AND LOOKS LIKE IT WANTS TO GO LOWER. MATT: THE BBDXY IS A BETTER INDICATOR OF DOLLAR STRENGTH AND WEAKNESS. YOU MENTIONED GOLDEN BITCOIN, WHICH CAN -- WHICH HAVE COME SO FAR SO FAST. ARE YOU BULLISH THAT LIEBER WILL LEAN TOWARD THAT AND LET INFLATION RUN HOT? JURRIEN: YES, AND I THINK THAT IS WHAT WILL HAPPEN. WE TALKED ABOUT THE 1940'S. THE NET -- THE LATE 1960'S IS AN INTERESTING PARALLEL BECAUSE THERE WAS CHRONICALLY LOOSE FISCAL POLICY, DEFICIT AFTER DEFICIT, AND CHRONICALLY LOOSE POLICY NOT BECAUSE IT WAS FISCAL DOMINANCE. THE FED WAS INDEPENDENT. BUT POLICYMAKERS DID NOT SEE THE THREAT OF INFLATION UNTIL IT WAS TOO LATE. IN THAT SCENARIO THE DOLLAR COMES UNDER PRESSURE. WE ENDED UP LOSING THE GOLD STANDARD AROUND THAT TIME. THIS HARKENS BACK TO THE. THIS -- ESPECIALLY IF WE GO INTO AN OVERT PHYSICAL DOMINANT ERA WHERE MONETARY POLICY IS LOOSER THAN IT OTHERWISE SHOULD BE, YOU GET GOLD -- DOLLAR LOSING RESERVE STATUS AND GOLD AND BITCOIN ON THE OTHER CITED THAT TRADE. ROMAINE: RIGHT NOW LOOKING AT GOLD AT RECORD HIGHS, STOCKS NEAR SESSION HIGHS. JURRIEN TIMMER KICKING US OFF TO THE CLOSE THIS MONDAY AFTERNOON. COMING OUT OF A WEEKEND WHERE WE SAW CHAOS AND CONFUSION SURROUNDING THE H-1B VISAS HERE IN THE U.S. THAT DISCUSSION COMING UP AFTER THE BREAK. THIS IS THE CLOSE ON BLOOMBERG. ROMAINE: PRESIDENT TRUMP'S MASSIVE OVERHAUL OF THE H-1B VISA PROGRAM WITH A $100,000 FEE FOR APPLICATION WILL LIKELY DAMAGE THE OFFSHORE I.T. SERVICES MODEL. COMPANIES LIKE TATA CONSULTANCY AND COGNIZANT MAY BE FORCED TO REDESIGN PRICING PLANS TO OFFER AN EXPENSIVE ONSHORE CONSULTING MODEL OR CHEAPER OFFSHORE PROGRAM. MATT: OUR SENIOR TECHNOLOGY ANALYST HAS BEEN COVERING THIS FOR US. THIS IS A SECTOR YOU HAVE BEEN ANALYZING FOR QUITE A LONG TIME AND UNTIL NOW IT CAUSED NOTHING TO BRING LOWER COST WORKERS, MAY BE BETTER EDUCATED WORKERS, FROM OVERSEAS. NOW WHAT ARE TECH COMPANIES THAT RELY ON ESPECIALLY FOR I.T. OR HEALTHCARE SERVICES, WHAT ARE THEY GOING TO DO? > > IT WILL BE A DIFFERENT WAY OF DOING BUSINESS FOR THEM. WITH S & P SOFTWARE YOU WOULD HAVE PEOPLE ONSHORE, ON SITE IMPLEMENTING STUFF FROM LOW COST COUNTRIES AND THEY WILL HAVE TO FIGURE OUT IF THEY HAVE A FULLY ONSHORE OR OFFSHORE MODEL BECAUSE IT WILL BE DIFFICULT FOR COMPANIES TO HIRE WORKERS GIVEN THE COMPENSATION AND ON TOP OF THAT $100,000 FEE. IT WILL BE DIFFICULT TO DO IT THAT WAY. ROMAINE: I KNOW IT IS STILL EARLY AND SO MUCH WE DON'T KNOW ABOUT WHAT THE TRUMP ADMINISTRATION'S GAMES ARE, BUT IS THERE A SENSE COMPANIES CAN WAIT THIS OUT? WE ARE HEARING ABOUT POTENTIAL EXEMPTIONS FOR DOCTORS, CERTAIN TYPES OF TECH WORKERS MAY BE AS WELL? > > ANOTHER THING, IT WILL NOT HAPPEN RIGHT AWAY. WE ARE ALREADY TAPPED OUT FOR THIS YEAR. IT WILL BE MORE BEGINNING OF NEXT YEAR WE SEE WHEN COMPANIES VIE FOR NEW APPLICATIONS. IT DOES NOT MATTER IF SOMEBODY NEEDS A RENEWAL IN BETWEEN. WHAT IS GOING TO HAPPEN, NEXT YEAR WHEN COMPANIES ARE THINKING LONG AND HARD GOING TO CLIENTS, WHETHER A BANK OR HOSPITAL SYSTEM OR RETAILER, WE DID A DEAL FOR IMPLEMENTATION OF THIS SOFTWARE, AND THE WAY WE DID THIS WAS, 10% OF MY STAFF ONSHORE AND THE REST OFFSHORE. THAT PRICING DOES NOT WORK ANYMORE. WE HAVE TO REDESIGN THE PROGRAM TO SEE WHAT WORK NEEDS TO BE DONE ON THIS PRICING. MATT: THESE COMPANIES HAVE THOUSANDS OF H-1B VISA WORKERS AND ALMOST HALF THE PROGRAM GOES TO OUTSOURCED I.T. WORKERS. WHAT WILL THEY DO IF THEY CAN'T BRING THESE PEOPLE? IF THEY DECIDE THEY CAN'T AFFORD TO, ESPECIALLY SMALLER COMPANIES? DO AMERICAN WORKERS HAVE THE EDUCATION, SKILLS NECESSARY TO FILL THESE JOBS? > > OBVIOUSLY THE ENGINEERS IN THE U.S. ARE QUALIFIED TO DO A LOT OF THAT WORK, BUT THE ISSUE IS NOT SO MUCH THE SKILL SET. THE BIG QUESTION IS WHETHER THERE IS THE CAPACITY. IT IS MORE A VOLUME GAME. THE NUMBER OF GRADUATES PER YEAR IN THE U.S. ARE LESS THAN 100,000 WHEN IT COMES TO ENGINEERING AND THOSE KINDS OF JOBS. IN INDIA AND CHINA THE NUMBER IS NORTH OF 500,000 OR CLOSE TO ONE MILLION. IT IS ALSO A NUMBERS GAME RATHER THAN A MATTER OF QUALIFICATIONS BUT THERE IS NO DOUBT IN MY MIND THERE IS A SHORTAGE OF TECH WORKERS IN THE U.S. ROMAINE: TAKING A CLOSER LOOK AT WHAT COULD BE A BIG HIT TO SOME TECH COMPANIES THAT RELY ON THIS MODEL. THERE HAS BEEN A LOT OF TALK OVER THE YEARS, LONG BEFORE THE TRUMP ADMINISTRATION, ABOUT THE H-1B VISA PROGRAM AND WHETHER IT WAS EQUITABLE TO BEGIN WITH. MATT: THAT IS RIGHT. THE PROBLEM IS, A LOT OF FIRMS, ESPECIALLY OUTSOURCING FIRMS, HAVE BEEN GAMING THE SYSTEM. WE HAD A STORY LAST JULY THAT POINTED OUT MORE THAN 15,000 OF THOSE WHO WON THE H-1B VISA US IN 2023, AND ONLY 85,000 THAT YEAR, APPLIED MULTIPLE TIMES, MANY MULTIPLE TIMES. ESSENTIALLY CHEATING TO GET THOSE VISAS. THIS COULD BE ONE WAY TO STOP THAT HAPPENING. ALTHOUGH OF COURSE YOU HAVE TO PAY UP AND ONLY THE BIGGEST FIRMS CAN AFFORD IT. ROMAINE: YOU TAKE ONE SYSTEM THAT IS AN EQUITABLE AND MAY BE REPLACE IT FOR ANOTHER SYSTEM ALSO IN EQUITABLE. MATT: AS WE HAVE SEEN WITH TARIFFS, BIG COMPANIES WILL BE ABLE TO DEAL WITH THIS, SMALL COMPANIES LOSE OUT AND HAVE TO FOLD UP. ROMAINE: A DEVELOPING STORY THAT COULD BECOME A LONGER STORY IN THE YEARS TO COME AS WE COUNT YOU DOWN TO THE CLOSING BELL THIS MONDAY AFTERNOON. WE WILL TAKE A LOOK AT BIG CALLS BY ANALYST TODAY INCLUDING IN THE APPAREL SPACE. SHOES, CROCS AND STEVE MADDEN GOING IN OPPOSITE DIRECTIONS. THIS IS BLOOMBERG. ♪ ROMAINE: LET'S GET TO OUR TOP CALLS. WE START OFF TODAY WITH BRINKER INTERNATIONAL, WELLS FARGO -- MANAGEMENT'S CURRENT EPS FORECASTS ARE QUOTE BEATABLE WITH NEW FOOD ITEMS LIKERIBS AND THE QUESO RELAUNCH. BNP PARIBAS CUTTING TO UNDER PERFORM. THE PRICE TARGET GOING DOWN TO $24. BNP SITING RISK AROUND EARNINGS ON THE POORLY RECEIVED ACQUISITION OF THE PARENT COMPANY OFPEET'S COFFEE, THOSE SHARES DOWN A THIRD STRAIGHT DAY AND DOWN 15% SINCE THE DEAL WAS ANNOUNCED IN AUGUST. AND RAYMOND JAMES L DOWNGRADESENNAR. SAYING THE MARKET IS UNDERESTIMATING HOW LONG IT WILL TAKE LENNAR TO RESTORE ITS MARGINS. SHARES COULD RISE IF MORTGAGE RATES FALL UNEXPECTEDLY AND FAST. SHARES OF LENNAR FALLING 4% FOR A FOURTH STRAIGHT DAY. THOSE ARE OUR TOP CALLS IN THE CONSUMER SPACE. OUR GUEST HAS RETAIL NAMES TODAY DOWNGRADING CROCS TO NEUTRAL AND SLASHING THE PRICE TARGET TO $75. CONCERNS ABOUT WHAT IS GOING ON IN THE U.S. AND STEVE MADDEN, PRICE TARGET FROM 25. LET'S BRING HER INTO THE CONVERSATION, FROM PIEPER SANDLER EQUITY RESEARCH. I WANT TO START WITH STEVE MADDEN. IT HAS BEEN A SURPRISING MOVE UPWARD. A STOCK AND BRAND THAT HAVE BEEN IN TROUBLE THE LAST FEW YEARS. HAVE THEY TURNED THINGS AROUND? > > GREAT TO BE HERE, THINGS FOR HAVING ME. WITH STEVE MADDEN, IT IS AN INTERESTING SMALLER CAP IDEA IN THE SPACE. AS WE THINK ABOUT WHAT HAS BEEN HAPPENING WITH TARIFFS THIS YEAR IT HAS BEEN A PERFECT STORM FOR STEVE MADDEN, THEY WERE HIGHLY EXPOSED TO CHINA, MOVING AWAY FROM CHINA AND INTO PLACES LIKE BRAZIL THAT GOT TERRORIST -- THAT GOT TARIFFED HIGHER. NAVIGATING A DIFFICULT ACT DROP IN PROFITABILITY GOT CUT IN HALF. THIS IS A 6% OPERATING MARGIN BUSINESS THAT STRUCTURALLY SHOULD BE LOW DOUBLE DIGITS AGAIN AND WE DON'T SEE WHY THAT WOULD NOT BE HAPPENING INTO 2026 AND BEYOND. THE GOOD NEWS AS THEY STABILIZE PRODUCTION, THERE IS A CYCLE HAPPENING IN THE INDUSTRY AWAY FROM CASUAL AND MORE INTO DRESSY CATEGORIES AND STEVE MADDEN IS AKIN TO A FAST FASHION MODEL, THEY TURN INVENTORIES EIGHT TO 10 TIMES A YEAR. WHEN THERE ARE TRENDS IN THE INDUSTRY THIS COMPANY CAN BENEFIT FROM THOSE AND INTERPRET THOSE QUICKLY. SO YOU'RE STARTING TO SEE THAT SPECIFICALLY THE DRESSY AND BOOT CYCLE IS HAPPENING FOR THE FIRST TIME IN A COUPLE YEARS AND INTO 2026 WE BELIEVE THE COMPANY WILL BE GROWING SALES AGAIN AND PROFITABILITY WILL FOLLOW. ROMAINE: WHAT IS STEVE MADDEN'S RELATIONSHIP WITH THIRD-PARTY SELLERS? HAS THAT RELATIONSHIP IMPROVED? ANNA: YOU MEAN WITH WHOLESALE PARTNERS? THAT IS A GREAT QUESTION. A SIGNIFICANT PORTION OF THEIR DISTRIBUTION IS OFF-PRICE. OFF PRICING WAS CUTTING WHEN THE TARIFFS WERE AT THEIR PEAK AND SINCE THEN THE ENVIRONMENT HAS STABILIZED AND WE THINK THE DISTRIBUTION PATTERN WHERE THEY MAKE THAT PRODUCT FOR THAT CHANNEL IT IS STARTING TO GROW INTO 2026 AND THE INTERESTING PART OF THE STORY IS THE ACQUISITION MAY MADE THIS SUMMER, AND INTERESTING UNDER APPRECIATED OPPORTUNITY AND BRAND STARTING TO GROW HERE IN THE U.S. AND WE THINK HAS A LOT OF MOMENTUM. MATT: I WONDER ABOUT CROCS, A BRAND THAT HAD SUBSTANTIAL GROWTH IN THE U.S. I SEE ALL THE KIDS WEARING THEM WHEN I DROP OFF MY DAUGHTER AT PRESCHOOL. AND AN UNFORTUNATE NUMBER OF ADULTS WEARING THEM WHEN I GO TO THE AIRPORT. THIS IS A COMPANY WITH A PE OF LESS THAN SIX. 4 P, ONLY 6.8. HOW MUCH LOWER ON THE VALUATION CAN THIS COMPANY GO? ANNA: WE ARE NOT ARGUING THE MULTIPLE CONTRACTS. WE JUST WORRY THE MULTIPLE COULD STAY AT THESE LEVELS AND THE STOCK WOULD BE RANGE BOUND AS A RESULT. WE DO SURVEYS THAT WE HAVE DONE FOR A NUMBER OF DECADES. ACCORDING TO THE SURVEY, THE BRAND STARTED LOSING HEAT SPECIFICALLY WITH THE TEEN CONSUMER. I THINK YOU ARE RIGHT, THE YOUNGER CUSTOMER ADOPTION OF THE BRAND IS STILL SIGNIFICANT, BUT AS THIS CONSUMER AGES, YOU START LOSING THEM. I THINK WE ARE STARTING TO SEE THAT. CROCS HAS DONE A GOOD JOB DIVERSIFYING AWAY FROM CLOGS. THEY TALKED ABOUT THE SANDAL CATEGORY THAT IS GROWING NICELY. WE THINK DOUBLE DIGITS. IT IS STILL A SMALL PERCENTAGE OF THEIR MIX. THE CLOG INDUSTRY ACCORDING TO OUR RESEARCH IS STILL GROWING PRETTY NICELY. BUT THE PROBLEM IS, THERE ARE NEW ENTRANTS IN THIS CATEGORY AND WE THINK THE CROCS BRAND IN THE U.S. IS STARTING TO LOSE MOMENTUM. MATT: CAN SYDNEY SWEENEY HELP? WITH HATE DO -- HEY DUDE? ANNA: THE SYDNEY SWEENEY RELATIONSHIP WE BELIEVE IS ENDING. HEY DUDE HAS HAD STRUGGLES AS WELL. PRETTY LOW BRAND AWARENESS ESPECIALLY IF YOU GO OUTSIDE OF THE CORE MIDDLE OF THE COUNTRY MARKETS, ESPECIALLY ON THE WEST COAST AND NORTHEAST AS WELL. WE THINK ADDITIONAL MARKETING MAY BE NEEDED. CROCS OVERALL HAS HAD SOLID PROFIT ABILITY, BUT UNFORTUNATELY THAT HAS BEEN ERODING. MARKETING FOR HEY DUDE HAS BEEN PART OF IT. MATT: GREAT TO TALK WITH YOU TODAY, ANDREW AND REVA FROM PIPER SANDLER MARKET RESEARCH. HEY DUDE IS THE SUBSIDIARY SYDNEY SWEENEY DID THE ADS FOR BEFORE THE GENES. ROMAINE: SHE IS EVERYWHERE. MATT: SHE SHOULD BE EVERYWHERE. WE NEED MORE. ROMAINE: WHY? [LAUGHTER] ROMAINE: 3:30 P.M. HERE IN NEW YORK. THIS IS THE COUNTDOWN TO THE CLOSED. I'M ROMAINE BOSTICK. MATT: I'M MATT MILLER. WE ARE LOOKING AT EQUITY INDEXES AT AN ALL-TIME HIGH. NOT THE RUSSELL 2000 WHICH HAD A ROUGH DAY FRIDAY. IT IS UP, BUT THE S & P, NASDAQ AND DOW JONES HITTING NEW HIGHS. ROMAINE: WHEN WILL THE RUSSELL GET ITS MOJO BACK? THEY HAD OUTPERFORMANCE THE OTHER DAY. MATT: FIRST TIME WE SAW FOUR OF THOSE INDEXES CLOSE ON AN ALL-TIME HIGH ON THE SAME DAY SINCE 2021. HAS ONLY HAPPENED 25 TIMES IN THE WHOLE CENTURY. I FEEL LIKE FED CUTS SHOULD HELP. ROMAINE: YOU HOPE SO. IT SEEMS TODAY PEOPLE ARE BACK INTO THE BIG TECH AND AI TRADE. NVIDIA SHARES TRADING AT A RECORD HIGH ON AN INTRADAY BASIS. POTENTIALLY PAVING THE ROAD TO SUPER INTELLIGENCE. WE LEARNED ABOUT A FRESH $100 BILLION INVESTMENT THE COMPANY IS MAKING IN OPENAI, MEANT TO EXPAND COMPUTE INFRASTRUCTURE IN A RACE TO MAKE AI SMARTER. I CAUGHT UP WITH THE GODFATHER OF AI, THE NOBEL PRIZE-WINNING FINISH ASSIST, NOW A PROFESSOR EMERITUS AT THE UNIVERSITY OF TORONTO. WE TALKED ABOUT THE MEDIA RURAL -- METEORIC RISE. > > A BUNCH OF PEOPLE, FORMER ACADEMICS, WORRIED ABOUT SAFETY. MANY OF THE REAL EXPERTS IN THIS STUFF REALLY BELIEVE WE ARE GETTING SUPER INTELLIGENCE COMING AND IT IS VERY SCARY -- SCARY UNLESS WE DO IT CAREFULLY. ROMAINE: YOU ALMOST A YEAR AGO, OCTOBER OF LAST YEAR, YOU WERE AWARDED THE NOBEL PRIZE FOR YOUR WORK THAT LAY THE FOUNDATION FOR A LOT OF WHERE WE ARE TODAY WHEN IT COMES TO ARTIFICIAL INTELLIGENCE. WHEN YOU LOOK AT THE MODELS BEING USED AND I DON'T MEAN TECHNOLOGICAL BUT BUSINESS MODELS BEING USED BY VARIOUS COMPANIES, DO YOU SEE SOME OF THOSE AS BEING MORE RESPONSIBLE ACTORS THAN OTHERS? GEOFFREY: YES. FIRST I WANT TO CORRECT SOMETHING. A LARGE NUMBER OF PEOPLE CONTRIBUTED TO ARTIFICIAL INTELLIGENCE. I WAS JUST ONE OF THEM. SOME COMPANIES ARE MORE ETHICAL THAN OTHERS. ANTHROPIC WAS SET UP TO BE MORE ETHICAL THAN OPENAI AND WAS SET UP BY PEOPLE WHO LEFT OPENAI FELT IT WAS NOT BEING DEVELOPED WITH SAFETY IS THE FIRST PRINCIPLE. ANTHROPIC IS CONCERNED WITH CONSUMER SAFETY. WHICH DEVELOPED GEMINI WITH GOOGLE IS FAIRLY CONCERNED WITH SAFETY. THEY HAVE BEEN CONCERNED WITH SAFETY FOR A LONG TIME AND AWARE OF THE ISSUES OF HOW DANGEROUS SUPER INTELLIGENCE COULD BE. SOME OF THE OTHER COMPANIES ARE LESS ETHICAL IN MY OPINION. IN MY OPINION META AND MUSK'S COMPANY XAI SEEM TO BE LESS CONCERNED WITH DEVELOPING STUFF SAFELY EVEN THOUGH PEOPLE LIKE ELON MUSK DO UNDERSTAND THE RISKS. ROMAINE: WHEN WE TALK OF THOSE POTENTIAL RISKS, I'M CURIOUS ABOUT YOUR PAST RELATIONSHIP WITH GOOGLE AND WHAT IS EFFECTIVELY NOW DEEPMIND. YOU SOLDIER COMPANY TO THEM MORE THAN IT DECADE AGO BUT ALSO LEFT SOME TIME AGO AS WELL. WHY? GEOFFREY: I DID NOT LEAVE IN ORDER TO CRITICIZE GOOGLE. I GOT ALONG VERY WELL WITH GOOGLE. WHILE I WAS THERE THEY WERE OPERATING AS ETHICALLY AS A COMPANY COULD. FOR EXAMPLE THEY DEVELOPED THESE LARGE CHATBOTS BEFORE ANYBODY ELSE, THE ONES THAT USED TRANSFORMERS IN 2017. A FEW YEARS LATER THEY HAD VERY GOOD CHATBOTS AND DID NOT RELEASE THEM TO THE PUBLIC. BUT WHEN OPENAI MADE A DEAL WITH MICROSOFT AND THEY WERE RELEASED TO THE PUBLIC FOR SEARCH, BING, GOOGLE HAD NO ALTERNATIVE BUT TO COMPETE AND MAKE THEM PUBLIC. ROMAINE: I'M CURIOUS ABOUT YOUR THOUGHTS ON THE RELIABILITY OF A LOT OF WHAT WE ARE SEEING WITH REGARDS TO AI AND THE -- FOR THE CONSUMER AND A LOT OF US THE EXPOSURE IS THROUGH CHATBOTS. THERE HAVE BEEN DISCUSSIONS ABOUT WHETHER THEY ARE DELIVERING US REAL INFORMATION, WHETHER THEY ARE REINFORCING OUR OWN PERSONAL THOUGHTS AND BELIEFS AS WE ENTER PROMPTS, AND WHETHER THEY ARE TRULY THINKING FOR THEMSELVES. CAN WE RELIANT WHAT THEY ARE TELLING US? GEOFFREY: NO, YOU CAN'T RELY ON THEM FOR WHAT THEY ARE TELLING YOU ANY MORE THAN A PERSON. A PROBLEM WITH CHATBOTS IS WHAT IS CALLED HALLUCINATIONS. FOR LANGUAGE MODELS IT SHOULD BE CALLED CONFABULATION. IT HAS BEEN STUDIED BY PSYCHOLOGISTS A LONG TIME IN PEOPLE. SO WE KNOW WHEN PEOPLE REMEMBER THINGS THAT HAPPENED SOME TIME AGO, THEY MAKE UP A LOT OF DETAILS. THEY ARE PERFECTLY CONFIDENT IN THESE DETAILS EVEN THOUGH THEY ARE WRONG. YOU DON'T OFTEN SEE THAT BUT IT WAS VERY CLEAR FOR EXAMPLE WHEN JOHN JEAN TESTIFIED IN THE WATERGATE TRIALS HE DID NOT KNOW THERE WERE TAPES OF THE OVAL OFFICE BUT CONFIDENTLY DESCRIBED MEETINGS IN THE OVAL OFFICE THAT NEVER HAPPENED AND IT DID NOT LOOK LIKE HE WAS LYING. HE WAS TRYING TO TELL THE TRUTH, BUT SAID WHAT SEEMED PLAUSIBLE RETROSPECTIVELY GIVEN HIS EXPERIENCE IN THE OVAL OFFICE. HE CHARACTERIZED WHAT WENT ON VERY WELL BY MAKING UP SCENARIOS TYPICAL TO WHAT HAPPENS BUT WERE NOT WHAT HAPPENED. CHATBOTS DO THAT, TOO. THE FACT THEY DO THAT MAKES THEM MORE LIKE PEOPLE, NOT LESS. ROMAINE: WOULD YOU LIKE TO SEE MORE COORDINATION AMONGST WORLD GOVERNMENTS, WHETHER THROUGH A BODY LIKE THE U.N. OR SOMETHING NEW AND SIMILAR TO THAT, TO PROVIDE IF NOT GUARDRAILS, MORE GUIDANCE AS TO HOW WE DEVELOP? GEOFFREY: YES, I WOULD LIKE TO SEE A LOT MORE GUIDANCE. THE PROBLEM IS THAT ON MANY OF THE DANGEROUS THIS USES OF AI BY PEOPLE, THE GOVERNMENTS MISALIGN. FOR EXAMPLE, THE U.S. AND CHINA ARE NOT GOING TO COLLABORATE WITH EACH OTHER ON HOW YOU DO THE BEST CYBERATTACKS. THEIR INTERESTS ARE OPPOSED ON THAT. THEY WILL NEVER COLLABORATE ON THAT. THEY ARE NOT GOING TO COLLABORATE WITH EACH OTHER ON HOW TO BUILD BETTER AUTONOMOUSLY THE WEAPONS. THEIR INTERESTS ARE MISALIGNED ON THAT. THERE IS ONE ISSUE ON WHICH ALL COUNTRIES HAVE AN ALIGNED INTEREST AND WILL COOPERATE, AND THAT IS PREVENTING SUPER INTELLIGENT AI FROM TAKING OVER FOR PEOPLE. NO COUNTRY WANTS THAT. THE AMERICAN GOVERNMENT DOESN'T WANT THAT, THE CHINESE COMMUNIST PARTY DOES NOT WANT THAT. SO THEY WILL COLLABORATE ON THAT. ROMAINE: BUT THERE ARE A LOT OF PEOPLE WHO BELIEVE THAT IS INEVITABLE. MAYBE NOT 100% OF ALL OF OUR JOBS AND TASKS, BUT EVEN GO BACK TO THE EARLY WRITINGS OF OTHERS, THAT MAY BE SOME FORM OF ARTIFICIAL INTELLIGENCE OR TECHNOLOGY REPLACING OUR DAY-TO-DAY JOBS, FREES US UP TO BE CREATIVES OR ARTIST, IS THAT A FANTASY? GEOFFREY: IT IS NOT ENTIRELY OF INTERESTING. THAT WOULD BE GREAT, ON THE FACE OF IT. IF AI CAN INCREASE PRODUCTIVITY THERE SHOULD BE MORE GOODS AND SERVICES FOR EVERYBODY, SO EVERYBODY SHOULD BE BETTER OFF AND WE WOULD HAVE TO WORK FOR LESS. WE WOULD BE MORE FREE TO DO THE MOST HUMAN THINGS WE DO. BUT WE LIVE IN A PARTICULAR KIND OF SOCIETY. IT HAS SERVED MOST OF US VERY WELL SO FAR, BUT IN THAT CAPITALIST SOCIETY, UNLESS IT IS WELL-REGULATED, WHAT WILL HAPPEN IS, ARTIFICIAL INTELLIGENCE WILL MAKE THE RICH A LOT RICHER, AND A LOT OF PEOPLE WILL LOSE THEIR JOBS. THAT IS WHAT I BELIEVE. IT IS NOT CERTAIN, SOME ECONOMISTS DISAGREE. I THINK THEY ARE WRONG. ROMAINE: AND THAT WAS GEOFFREY HINTON PROFESSOR EMERITUS AT THE UNIVERSITY OF TORONTO WHO WON A NOBEL PRIZE ALMOST A YEAR AGO FOR HIS WORK ON MODELS THAT LAID THE FOUNDATION FOR ARTIFICIAL INTELLIGENCE. MATT: FASCINATING. INTERESTING BREAKING NEWS AS WELL, DISNEY SAYING AN EMAILED STATEMENT IT PLANS TO RETURN THE KIMMEL SHOW TO AIR ON TUESDAY. JOINING US IS CHRIS PALMERI. DISNEY SAYS THEY TOOK THE SHOW OFF THE AIR BECAUSE THEY THOUGHT THINGS WERE GETTING TOO HEATED AND THOUGHT KIMMEL'S COMMENTS WERE MAY BE ILL-TIMED AND INSENSITIVE. WHY DO THEY THINK TUESDAY IS THE RIGHT TIME TO BRING HIM BACK? CHRIS: THERE WAS A COOLING-OFF PERIOD. IT IS WHAT SOME STATION OWNERS ASKED FOR. PEOPLE HAD BEEN CALLED INTO LOCAL STATIONS, SALT LAKE CITY AND WHATEVER SAYING HIS REMARKS WERE INSENSITIVE SO DISNEY FELT IT HAD TO ACT. THAT WAS WEDNESDAY. THERE HAVE BEEN DISCUSSIONS AT THE HIGHEST LEVEL. WE UNDERSTAND FROM THE DISNEY CEO BOB IGER AND OTHERS OVER WHAT THE FUTURE WOULD HOLD. WE DON'T HAVE DETAILS IN TERMS OF WHAT HE IS GOING TO SAY TUESDAY, BUT PART OF THAT, THEY HAVE BEEN CALLS FROM SOME STATION OWNERS FOR HIM TO APOLOGIZE TO CHARLIE KIRK'S FAMILY, EVEN MAKE A DONATION. WHETHER THAT HAPPENS WE WILL WAIT AND SEE. ROMAINE: I'M CURIOUS, WHAT IS THE FUTURE? WHEN WE HEARD ABOUT THE SUSPENSION THERE WAS TALK ABOUT THE FACT KIMMEL'S CONTRACT WAS UP AT THE END OF THE YEAR ANYWAY. WHEN WE TALK ABOUT THIS RETURN TUESDAY, SHOULD WE UNDERSTAND -- ASSUME IT IS TEMPORARY? CHRIS: IT IS OBVIOUS THE LATE-NIGHT COMEDY FORMAT IS CHALLENGED. STEPHEN COLBERT GOING OFF THE AIR NEXT YEAR. YOU CAN DECIDE WHETHER OR NOT THAT WAS BASED ON POLITICS OR FINANCIAL DECISIONS. CBS SAID IT WAS A FINANCIAL ONE. THE KIMMEL SHOW IS ALSO LOSING MONEY. THESE SHOWS ARE NOT GETTING THE AUDIENCE THEY USE TO AND ARE VERY EXPENSIVE TO OPERATE. YOU CAN EXPECT PROBABLY THIS IS NOT A LIFETIME JOB FOR JIMMY KIMMEL. ROMAINE: ASSUMING THEY DO GET RID OF KIMMEL, IS THIS THE IDEA THEY WOULD REPLACE HIM WITH ANOTHER LATE-NIGHT HOST, OR JUST WALK AWAY FROM THIS TRADITIONAL LATE-NIGHT FORMAT? CHRIS: I THINK THAT IS THE DIRECTION THEY ARE HEADING WITHOUT REPLACING THE SHOW. MATT: THEY WOULD WALK AWAY? CHRIS WAS TALKING WITH LUCAS SHAW ABOUT THE OTHER DAY, WE WERE EXCHANGING BLUEBIRD MESSAGES AND HE MADE THE SAME POINT YOU DID, THAT THE SHOW LOSES MONEY, THAT COLBERT LOST MONEY. BUT THERE ARE SOME BENEFITS TO THE NETWORK AND HAVING THESE BIG NAME SHOWS THAT BRING CELEBRITIES IN. IS IT POSSIBLE IT IS VALUABLE TO THEM EVEN IF IT COSTS $10 MILLION, $20 MILLION A YEAR? CHRIS: I THINK THAT IS A REASON THEY HAVE STOCK AROUND AS LONG AS THEY HAVE, BUT THERE ARE OTHER WAYS TO GET THE MESSAGE OUT WITH SOCIAL MEDIA AND THAT. IT MAY NOT BE THE BEST FORMAT GOING FORWARD. I DON'T THINK DISNEY HAS MADE A FINAL DECISION ON THE PROGRAM, BUT IT DOES NOT APPEAR TO BE A LONG-TERM THING FOR JIMMY KIMMEL. MATT: THANKS FOR JOINING US, CHRIS PALMERI TALKING ABOUT JIMMY KIMMEL. HE WILL RETURN TO AIR ACCORDING TO DISNEY ON TUESDAY NIGHT. KEEPING WITH THIS STORY, TAKING A LOOK AT STOCK REACTION. SHARES ARE COMING OFF OF SESSION LOWS. A BOUNCE THOUGH STILL IN THE RED. TO BREAK IT DOWN FOR US, NORA. > > SEEING SHARES OF DISNEY IN THE RED DOWN LOWER THAN 1% AND PEOPLE ARE TRYING TO DIGEST THIS NEWS ABOUT JIMMY KIMMEL COMING BACK AND OF COURSE YOU ARE SEEING TRYING TO DECIDE WHAT TO DO WITH THIS. IN THE PAST WEEK A LOT OF CELEBRITIES WERE CANCELING THEIR DISNEY PLUS SUBSCRIPTIONS AS THEY WERE THINKING WHAT IMPLICATIONS ARE OF THE FACT THEY ARE TAKING JIMMY KIMMEL OFF THE SHOW OR WERE -- MATT: WHERE THEY DON'T HAVE KIDS. IF YOU HAVE KIDS THERE IS NO WAY. ROMAINE: JIMMY KIMMEL DOESN'T NECESSARILY MOVE THE NEEDLE WHEN WE TALK ABOUT THE BOTTOM LINE FOR A COMPANY OF THIS SIZE, BUT WHEN PEOPLE ARE CANCELING THEIR DISNEY PLUS SUBSCRIPTION OR SAY THEY WILL NOT GO TO DISNEY WORLD ANY OTHER PROPERTIES, WHETHER THAT IS REAL OR NOT WHO KNOWS, BUT I WONDER IF THERE IS EVIDENCE THIS ADDS UP TO APPOINT THE NEXT EARNINGS REPORT WE DO SEE MATERIAL WEAKNESS. NORA: IT IS AN ACT OF PROTEST, SO MANY PEOPLE COMING OUT AND MAKING COMMENTS ABOUT THE FACT HE WAS BEING REMOVED FROM THE SHOW. AS TO WHETHER OR NOT THAT FILTERS OUT INTO IMPLICATIONS FOR THE BOTTOM LINE, THAT IS WHAT ANALYSTS HAVE TO FIGURE OUT IN THIS PARTICULAR SCENARIO. YOU'RE SEEING WHAT WALL START -- WALL STREET IS THINKING. 32 ANALYST HAVE A BUY RATING, ONE WITH A CELL AND SEVEN WITH A HOLD. IT TELLS YOU WHAT WALL STREET THINKS OF THE COMPANY RIGHT NOW. MATT: LOOKING AT SHARE PERFORMANCE OF THE LAST FIVE YEARS IT HAS DONE A WHOLE LOT OF NOTHING. THE LAST YEAR IT IS UP 20%. TWO YEARS IT IS UP 40%. SO THEY ARE ON KIND OF A RUN. THE MARKET PRICING THEM IT 20 TIMES FORWARD EARNINGS ONCE THEY GET A CHANCE. NORAH: A LITTLE BIT OF A CHANCE. THE YEAR-TO-DATE PERFORMANCE UP 1.3%. THE PAST FIVE YEARS, NOT A CRAZY AMOUNT OF ACTIVITY, BUT A LITTLE POP IN THE GREEN AS YOU LOOK AT WHERE PERFORMANCE HAS BEEN LIKE. ROMAINE: A LOT OF MEDIA STOCKS MOVING THE LAST FEW MONTHS. SOME BASED ON ACQUISITIONS WITH PARAMOUNT, SKY DANCE AND WHATEVER IS GOING ON WITH WARNER BROS.. A RE-THINK OF WHAT THE FUTURE OF TELEVISION LOOKS LIKE. WE HAVE SEEN DISNEY UNDER PRESSURE AND OTHER PROPERTIES. IS THERE A SENSE INVESTORS CARE ABOUT THESE COMPANIES IN THE TRADITIONAL SENSE? THE IDEA THAT A LOT OF PEOPLE HAVE MOVED ON THE SOCIAL MEDIA OR OTHER NEW MEDIA FOR LACK OF BETTER PHRASE? CHRIS PALMERI WAS TALKING -- OR MATT TALKING ABOUT, ALL THESE PEOPLE WATCH IT. A COUPLE WEEKS AGO MY SON WAS WATCHING A STREAM AND THERE WERE ALL THESE CELEBRITIES LIKE MARIAH CAREY AND THE JONAH BROTHERS. THEY HAVE -- CELEBRITIES HAVE OTHER PLACES TO GO NOW TO GET EYEBALLS, WHERE IN THE PAST YOU HAD TO GO ON DAVID LETTERMAN, COLBERT OR KIMMEL. NORAH: LAST WEEK WE WERE TALKING ABOUT THE IDEA, SO MANY PEOPLE MOVING AWAY FROM BROADCASTS. WHEN YOU THINK OF WHERE TO GO FOR ADVERTISING, INFLUENCING, CELEBRITIES PUSHING BRANDS, YOU SEE THEM GOING TOWARD QUAD ZEISS SOCIAL MEDIA PLATFORMS. THE -- QUASI SOCIAL MEDIA PLATFORMS. ROMAINE: AND IT IS REPEATABLE BECAUSE PEOPLE GO BACK AND WATCH THAT IN A WAY THEY ARE NOT NECESSARILY GOING TO DO FOR A LATE-NIGHT SHOW. MATT: DO THE KIDS APPRECIATE MARIAH THE WAY WE DO? NORAH: I HOPE SO. MATT: THANK YOU FOR JOINING US. WE WILL BRING HEADLINES ON THE BREAKING STORY, JIMMY KIMMEL RETURNING TO THE AIR. ♪ > > AT THIS POINT THE FED IS CONDUCTING INDEPENDENT MONETARY POLICY, THERE IS NO QE. WE WILL SEE IF THAT CHANGES. MY SENSE IS NEUTRAL IS 3.75, INFLATION IS 2.75. NEUTRAL IS 100 BASIS POINTS. I WOULD NOT CHARACTERIZE MONETARY POLICY AS RESTRICTIVE. ROMAINE: JURRIEN TIMMER KICKING US OFF TO THE CLOSED. NOTHING RESTRICTIVE ABOUT WHAT IS GOING ON IN EQUITY MARKET. A THIRD STRAIGHT DAY OF RECORD HIGHS. MATT: RECORD HIGHS EVERYWHERE YOU LOOK. IF YOU LOOK AT FINANCIAL CONDITIONS ON THE BLOOMBERG, THEY ARE VERY LOOSE RIGHT NOW. PART OF THAT IS THE RALLY IN STOCKS AND 10 YEAR YIELDS OF COME DOWN SO MUCH. 4.15 DOES NOT SEEM LOW COMPARED TO LAST YEAR UNDER 4, BUT WE WERE GETTING CLOSER TO 5 EARLIER THIS YEAR. WHEN WE HAD PEOPLE ON LIKE THE SECRETARY OF THE TREASURY SCOTT BESSENT SINGH GETTING THE 10 YEAR YIELD DOWN IS ONE OF MY PRIMARY GOALS, IT SEEMED IT WAS NOT GOING TO HAPPEN. NOW YOU SEEING THEM ACHIEVE THAT. ROMAINE: THEY CAME IN TALKING ABOUT THE DOLLAR AND HOW IT NEEDED TO BE WEAKER. MAYBE THAT IS SOME OF THE CATALYST FOR SEEING THE STOCK MARKET MOVE. MATT: TAKE A LONG-TERM VIEW, IT IS OFF 10% OR 11% FROM ITS HIGH. LOOKING BACK FURTHER IT IS STILL PRETTY HEADY AT THESE LEVELS. JURRIEN TIMMER THINKS IT WILL CONTINUE TO COME DOWN. ROMAINE: CLOSING BELL'S EIGHT MINUTES AWAY. LET'S BRING JASON IN, CHIEF OF INVESTMENT STRATEGY, JOINING US IN STUDIO 2. I WANT TO TALK ABOUT HOW IMPORTANT A RATE CUTTING CYCLE IS FOR THIS MARKET IF IT ALL. JASON: IT IS IMPORTANT, PART OF THE EQUATION FOR INVESTORS THINKING THROUGH HOW THEY WILL VALUE STOCKS. IT AFFECTS THE ECONOMY BECAUSE LOWER RATES PROVIDE IMPETUS FOR ACTION AND DEVELOPMENT BY BUSINESSES, AND THE BACKBONE FOR VALUATIONS. SHORT-TERM RATES FEED INTO LONG-TERM TREASURY RATES, WHICH FEEDS INTO HOW EVERYONE VALUES STOCKS BECAUSE THAT IS THE COMPETITIVE ASSET TO BONDS. ROMAINE: AFTER THE RATE CUT THERE WAS TALK OF POTENTIAL OUTPERFORMANCE IN THE SMALL CAPS. A COUPLE DAYS WERE THEY DID NOT SHINE, BUT A LOT OF FAKES FROM THAT SPACE OF LATE. I WONDER GETS -- WHAT GETS PEOPLE CONFIDENT GOING INTO THE MID-AND SMALL-CAP SPACE AND STAYING? JASON: ONE IS THIS RATE SITUATION. LOWER RATES ARE FAVORABLE FOR SMALLER CAPITALIZATION STOCKS. WE HAVE NOT SEEN THAT PASS THROUGH YET. WE HAVE NOT GOTTEN TO A LEVEL HELPFUL FOR SMALL-CAP STOCKS. THEY FINANCE MORE FLOATING-RATE THAN OTHER CAPITALIZATION BASKETS. THE OTHER THING THAT HAS TO HAPPEN, A BROADENING OUT OF REVENUE GROWTH ACROSS THE BOARD. EARNINGS GROWTH ACROSS THE BOARD, RATHER THAN FOCUSED IN THE MEGA-CAP TECH. WE ARE SEEING THAT IN THE SECOND QUARTER, SMALL CAPS DELIVERING 18% EARNINGS GROWTH. WE CAN CLAIM THAT AS A TRUE NUMBER. THEY ARE CLOSE TO WRAPPING IT UP. THE NEXT TWO QUARTERS LOOK STRONGER THAN THAT. MATT: ONE PLACE WHERE YOU SEE BROUGHT OUTPERFORMANCE IS PLANET EARTH. IF YOU LOOK AT REGIONAL MARKETS, YOU HAVE MASSIVE GAINS. EVEN IN LOCAL CURRENCIES. THEY SAY IT IS THE DOLLAR BUT IT IS NOT. DAX UP ALMOST 20%. THE HANG SENG UP 30%. VESPA UP 30%. A GLOBAL BULL MARKET RIGHT NOW. DOES THAT CONTINUE? JASON: WE DO, WE THINK IT IS ABOUT THE DOLLAR. IT IS ABOUT GLOBAL GROWTH RESUMING, NOT JUST ABOUT TECH, BUT OTHER PARTS OF THE MARKET, OTHER BUSINESSES INCORPORATING AI, GETTING EFFICIENCIES THROUGH ON THE BOTTOM LINE. IF THE AI STORY IS TRUE WE WILL SEE IT SHOW UP ANOTHER COMPANY EARNINGS, NOT JUST TECH COMPANIES. AS FAR AS THE DOLLAR IS CONCERNED, WE HAVE A PARADIGM SHIFTING FROM A HIGH DOLLAR SITUATION FOR THE U.S. TO ONE THAT WILL PROBABLY SEE GRADUAL DEVALUING OF THE DOLLAR. DEVALUATION OF THE DOLLAR SHOULD FAVOR THE INDEXES YOU WERE TALKING ABOUT ON A U.S. DOLLAR BASIS. MATT: WHAT KIND OF ECONOMIC GROWTH DO YOU SEE? I HAD AN IMPORTANT AUTOMOTIVE CFO IN HERE THE OTHER DAY AND HE WAS ASKING ME BECAUSE HE SAID VISIBILITY IS NOT GREAT. WHERE IS THE U.S. GOING TO GROW NEXT YEAR? IN THE YEAR AFTER? HOW CONTINGENT IS THAT ON THE FED CUTTING DOWN TO THE 3% TERMINAL RATE THE MARKET HAS PRICED IN? JASON: I WILL GIVE YOU A VERY ECONOMIST ANSWER. THE NEXT COUPLE QUARTERS WILL PROBABLY BE MIDDLING GROWTH, 1% TO 1.5%. WE ARE STILL SEEING THE PINCH FROM THE TARIFFS, PASSED FROM COMPANIES WORKING THROUGH CHEAP PRE-TARIFF INVENTORIES ONTO CONSUMERS. ONLY 35% HAS BEEN PASSED ON TO CONSUMERS SO ANOTHER TWO TIMES WHAT WE FELT TO COME THROUGH. THAT IS THE NEXT COUPLE QUARTERS. NEXT YEAR THE IMPACT OF THIS FISCAL BILL STARTS SHOWING UP IN SPADES. WE GET REFUNDS ON TOP OF ADJUSTMENTS TO TAX BASES FOR CONSUMERS, AND ACCELERATION OF EXPENSING THAT HITS CORPORATIONS. THEY CAN DO THAT NOW BUT WILL PROBABLY FEEL THE MAJORITY OF THE BENEFIT NEXT YEAR. NEXT YEAR WILL PROBABLY BE STRONGER. CONSENSUS ESTIMATES IN THE 2.5% RANGE BUT WE ARE THINKING 3% PLUS IN THE BEGINNING OF NEXT YEAR. ROMAINE: THAT SOUNDS GREAT AND CIRCLES BACK TO THE QUESTION WHY START A RATE CUTTING CYCLE IF THAT IS ON THE HORIZON? WHERE DOES INFLATION END UP? IT IS GOOD TO SEE CONSUMER SPENDING BUT IF INFLATION CREEPS BACK UP FROM 3%, DOES THAT BECOME A HEADWIND? JASON: IT WILL BECOME A LITTLE BIT OF A HEADWIND. WE ARE EXPECTING TO TAKE UP TO 1%. THE FED WILL NOTCH THAT AND PROBABLY NEVER USE THE WORD TRANSITORY AGAIN. THEY WILL THINK OF IT AS A TEMPORARY ONE-TIME AFFECTING THE SYSTEM, NOT LONG-TERM. THEY WILL BE LOOKING MORE AT THE EMPLOYMENT MARKET TO MAKE MOVES ON INTEREST RATES. I THINK THE ARGUMENT IS STRONGER THAT WE NEED HELP FROM THE FED TO STABILIZE AND GIVE A LIFT TO THE EMPLOYMENT MARKET. EVEN AS WE HEAD INTO THE STRONGER GROWTH WE MAY SEE AT THE BEGINNING OF NEXT YEAR. ROMAINE: ALWAYS GREAT TO HAVE YOU. JASON PRIDE CHIEF INVESTMENT STRATEGY AND RESEARCH AT GLENN MEAD AS WEAK COUNT YOU DOWN TO THE CLOSING BELL. ONLY ABOUT HALF OF THE STOCKS IN THE S & P IN THE GREEN. BUT ONE OF THOSE DAYS WHERE DOES NOT MATTER BECAUSE THE RIGHT STOCKS ARE IN THE GREEN, THE BIG CHIP STOCKS AND PLAYERS IN THE AI SPACELIKE ORACLE, UP 7% TODAY. MATT: THEY INSTALLED NEW CO-CEO'S AT ORACLE. PREMARKET THEY WERE DOWN AND NOW POWERED HIGHER. NVIDIA SAYING THEY WILL INVEST $100 BILLION IN OPENAI. ROMAINE: THEN YOU HAVE APPLE UP 4% ON THE DAY, NOW IN THE GREEN ON A YEAR-TO-DATE BASIS BECAUSE PRELIMINARY READING ON IPHONE SALES ARE POSITIVE. WE WILL HAVE A FULL BREAKDOWN OF ALL OF TODAY'S MARKET ACTION AND PUSH YOU AHEAD TO WHAT TO LOOK FORWARD TO TOMORROW. THAT HAPPENS IN OUR SIMULCAST NOW. > > THE CLOSING BELL, BLOOMBERG'S COMPREHENSIVE CROSS THAT FORM COVERAGE OF THE U.S. MARKET CLOSE, STARTS RIGHT NOW. ROMAINE: WE ARE TWO MINUTES FROM THE END OF THE TRADING DAY. ROMAINE BOSTICK ALONGSIDE MATT MILLER TO TAKE YOU THROUGH THE CLOSING BELL WITH GLOBAL SIMULCAST. WE ARE JOINED BY CAROL MASSAR AND TIM STENOVEC IN THE RADIO BOOTH. WELCOME TO OUR AUDIENCES, INCLUDING IN OUR PARTNERSHIP WITH YOUTUBE. A THIRD STRAIGHT SESSION WE SEE THE S & P AT A RECORD HIGH. CAROL: IT IS AWESOME, INTERESTING TO SEE MOMENTUM TO THE UPSIDE. I WAS LOOKING TO SEE WHAT GROUPS BUT NO SURPRISE WITH NVIDIA. A BIG INVESTMENT FROM OPENAI. CALLS FROM WALL STREET, UPBEAT. THE PHILADELPHIA SEMIEN DR. -- SEMI CONDUCTOR INDEX, OUTPERFORMANCE AND BIG WAY. TIM: WE HAD A GUEST SAYING, I'M CONCERNED WE ARE NOT GOING TO GET THE RATE CUTS THE MARKET IS EXPECTING AND COULD SEE IN THE COMING MONTHS A PULLBACK. SHE IS OPTIMISTIC LONG-TERM, SO IF WE SEE A 10% TO 15% PULLBACK SHE IS BUYING. MATT: I WOULD HAVE THOUGHT PEOPLE WERE MORE CONCERNED ABOUT THIS $100,000 VISA PROGRAM. THERE WAS A LOT OF TALK ABOUT HOW MANY I.T. WORKERS HAVE THESE H-1B VISAS AND HOW EXPENSIVE IT MIGHT BE TO REDUCE THEM. ONE ESTIMATE IN A STORY FROM LAST YEAR WAS A 10% REDUCTION IN H-1B VISAS WOULD COST THE U.S. $86 BILLION IN GDP, BUT HAS NOT SEEM TO BOTHER INVESTORS AS WE MOVE TOWARD THE CLOSING BELL. ROMAINE: JUST ONE MORE THING TO TRADE AROUND UNTIL WE GET MORE CLARITY IN TERMS OF WHAT HAPPENS NEXT. IF YOU LOOK AT THE GREEN ON YOUR SCREEN, IT RATIFIES WHAT MATT WAS TALKING ABOUT. THE DOW JONES UP MORE THAN 70 POINTS, 0.2%, RECORD THE S & P500 UP A RECORD HIGH. THE NASDAQ UP .7%, THAT’S ALSO A RECORD HIGH. MEANWHILE YOU TAKE A LOOK AT THE RUSSELL 2000, IT CLOSES A TAD LOWER THAN LAST WEEK BUT STILL UP ON THE DAY TO CLOSE OUT THIS MONDAY. CAROL: CHECKING IN ON THE S & P 500, YOU’VE GOT ALMOST RECORD SPLIT. 200 NAMES IN THE S & P 500 GAINING, TWO UNCHANGED. TIM: IT’S ALL ABOUT THE BIG TECH STOCKS. INFORMATION TECHNOLOGY. A BIG GREEN SLICE OF YOUR IMAP PIE RIGHT NOW. AFTER NVIDIA SAID IT WOULD INVEST $100 MILLION IN OPEN AMPLE I. WHAT ELSE WOULD YOU EXPECT IN THAT’S THE KIND OF ANNOUNCEMENT THAT POWERS THE MARKET HIGHER. CAROL: I’M GOING TO START WITH NVIDIA, STILL UP JUST SHY OF 4%, NVIDIA GOING TO INVEST $100 BILLION IN OPEN AMPLE I. TO SUPPORT THE BUILDING OF NEW DATA CENTERS AND THE INFRASTRUCTURE NEEDED TO DEVELOP MORE AMPLE INCH. IT’S A LETTER OF INTENT, WHICH IS INTERESTING, BUT IT DID SEND NVIDIA MUCH, MUCH HIGHER AND THE WHOLE SEMI GROUP WAS MUCH HIGHER. I’VE GOT TO GO TO ORACLE FINISHING AT ITS BEST LEVELS OF THE S GAIN OF MORE THAN 6 HEALTH CARE. THIS AS THE COMPANY IS SAID TO BE RESPONSIBLE FOR THE ALGORITHM, THE SECURING OF THE ALGORITHM FOR TIKTOK IN THE UNITED STATES. MA T: YOU THINK THAT’S DRIVING THE STOCK HIGH HER CAROL: YOU DON’T THINK SO? MATT: I THINK IT’S BECAUSE THEY HAVE TWO NEW CO-C.E.O.’S. THAT’S NOT THE KIND OF $300 BILLION ORDER THAT YOU GET FROM -- ROMAINE: WHERE IS KATY? MATT: SHE’S ON TIKTOK AT HOME. CAROL: ORACLE HAS A CLOSE RELATIONSHIP WITH TIKTOK IN THE UNITED STATES. SECURING AND BEING INVOLVED IN THAT WOULD MEAN MOMENTUM FOR THEM. EVERY ORACLE DOES SEEMS TO BE ON FIRE RIGHT NOW. MATT: THE STOCK HAS DOUBLED YEAR TO DATE. DULLED. CAROL: WHICH IS WHY WE DID A 10-MINUTE SEGMENT ON WHAT’S GOING ON WITH ORACLE, THEY SEEM TO BE EVERYWHERE RIGHT NOW. MATT: WE’RE NOT GOING TO DO 10 MINUTES ARE WE? CAROL: ANOTHER ONE, TICKER IS BTER, BETTER HOME AND -- MATT: BETTER HOME AND FINANCING, IT’S RIGHT THERE ON THE SCREEN. CAROL: UNLIKE YOU TV PEOPLE WHO HAVE STUFF, AYE GOT A LOT TO DO OVER HERE. IT’S UP 67%, 67%, UP AS MUCH AS 175%. THIS HAPPENED AS E.M.J. SAID THE HEDGE FUND -- THIS IS THE GUY BEHIND OPEN DOOR AND WE SAW THE MOMENTUM THERE. BUT THIS ONE, IT’S NOT EVEN A BIG COMPANY IS IT? I MEAN WE’RE TALKING ABOUT A $764 MILLION MARKET CAP COMPANY BUT INSURANCE CAME OUT AND SAID HE’S LONG AND INVESTORS MOVED INTO IT. ROMAINE: THOSE ARE THE GAINERS. I’M WATCHING SHARES OF KENVIEW FALLING CLOSE TO A RECORD LOW OR CLOSING AT A RECORD LOW. EXCUSE ME. DOWNPARENT% TODAY, THIS AFTER THE TRUMP AD, WE LEARNED, PLANS TO LINK THE ACTIVE INGREDIENT IN TYLENOL TO AUTISM AND WARN PEOPLE -- WARN PREGNANT WOMEN AGAINST USING IT UNLESS THEY HAVE A FEVER. WE’LL BRING THOSE COMMENTS TO YOU LIVE WHEN WE DO GET THEM. FORMERLY THE CONSUMER HEALTH CARE DIVISION OF JOHNSON & JOHNSON, SO ONLY A FEW YEARS AS AN INDEPENDENT, SPUN OUT COMPANY. DISNEY SHARES FINISHED THE DAY DOWN 1%. TOWN AS MUCH AS 2% EARLIER IN THE SESSION, BOUNCED HIGHER A BIT AFTER THE COMPANY SAID JIMMY KIMMEL LIVE WILL RETURN TO AIR ON TUESDAY, FOLLOWING A SUSPENSION AFTER CONTROVERSIAL REMARKS HE MADE ABOUT ACTIST CHARLIE KIRK. KIMMEL WILL ADDRESS THE KIRK CONTROVERSY WHEN HE RETURNS. > > REALLY? WHAT IF HE JUST CAME BACK AND DIDN’T MENTION IT. > > THAT WOULD BE WEIRD. ALSO WE LEARNED HE PERSONALLY NEGOTIATED A RETURN WITH BOB AGUIRRE OVER AT DISNEY IN ADDITION TO WALDEN AS WELL. DISNEY SHARES FALLING 1% TODAY. FINALLY, COMPASS, THE REAL ESTATE FIRM, GOING LOWER, DOWN 15.7%. THIS AFTER THE COMPANY AGREED TO BUY ANYWHERE REAL ESTATE. ANYWHERE HAS BRANDS INCLUDING COLDWELL BANKER, SOTHEBY’S INTERNATIONAL REALTY. IT’LL BE A BIG PLAYER WHEN IT COMES TO THE LARGEST RESIDENTIAL BROKERAGE IN THE U.S. ROMAINE: WE DID SEE YIELDS RISE TODAY MODESTLY. ABOUT TWO BASIS POINTS ACROSS THE CURVE. THIS DESPITE SOME COMMENTARY WE HEARD EARLIER FROM THE TRUMP APPOINTEE TO THE FED GOVERNORSHIP GIVING A SPEECH AT THE ECONOMIC CLUB OF NEW YORK SAYING HE WANTS TO SEE A MORE AGGRESSIVE RATE CUTTING PSYCHLE TO PROTECT THE LABOR MARKET THAN WE HAVE HEARD FROM OTHER FED MEMBERS SAYING, MAYBE NOT. LET’S HOLD OFF HERE. INTERESTING TO SEE WHO THE MARKET IS PAYING ATTENTION TO RIGHT NOW, WHICH SEEMS TO BE MORE ON THE CAUTIOUS SIDE THAN ANYTHING ELSE. CAROL: LET’S GET TO SOME CHATS THAT WERE ON OUR RADAR. WAL-MART IS ADDING HOME DELIVERY FOR THINGS LIKE OSEMI-PICK AND OTHER REFRIGERATED DRUGS. THEY’VE OFFERED REFRIGERATED DRUGS AT WAL-MART BUT YOU HAVE TO GO IN AND PICK IT UP. > > REFRIGERATED DRUGS? CAROL: YEAH, THINGS LIKE INSULIN, GOT TO KEEP IT IN THE FRIDGE. AMOXIL LYNN. USUALLY YOU GO AND PICK IT UP AT A WAL-MART NOW THEY’RE DELIVERING IT TO YOUR DOOR. > > THEY’VE GOT SPECIALIZED INSULATED BAGS, CAN BE DELIVERED IN A SINGLE ONLINED OR WE ARE GROCERY TIMES. THEY CAN DELIVER 90% OF PRESCRIPTION MEDICATIONS IN 49 DIFFERENT STATES. ROMAINE: WONDERFUL. I LIVE IN ONE OF THESE FANCY PARDON ME BUILDINGS IN NEW YORK CITY, THEY PUT A REFRIGERATOR IN THE PACKAGE ROOM BECAUSE PEOPLE ARE GETTING DELIVERIES OF DRUGS AND THINGS. > > THE RISE OF DELIVERY HAS WREAKED HAVOC, THIS IS A NEW YORK CENTRIC STORY, BUT IT’S WREAKED HAVOC ON DOORMEN AND THEIR JOBS. THEY’RE NOW BASICALLY IN CHARGE OF COORDINATING PACKAGE DELIVERY, IF YOU DON’T HAVE SOMEWHERE TO STORE REFRIGERATED THINGS IT MAKES IT DIFFICULT TO GET GROCERIES TO YOU WITHOUT THEM SPOILING. CAROL: WHAT DO YOU HAVE? ROMAINE: YOU NEED TO COME DOWN HERE, YOUR HEAD IS OUT OF SHOT. WHEN YOU AUDIOCASSETTE ABOUT THE OURA RING, I HAVE ONE, $11 BILLION VALUATION ON THIS COMPANY NEW. AFTER THEIR LATEST FUNDRAISING ROUND. THEY’RE RAISING A LOT OF QUESTIONS AS TO WHERE THIS COMPANY GOES NEXT. A WILDLY POPULAR SINGLE PRODUCT COMPANY. BUT HOW DO YOU EVOLVE FROM THIS? > > I THINK IT’S INTERESTING, ONE THING THAT YOU DO IS MAKE A DEAL WITH AMERICAN EXPRESS. > > I WAS CHECKING THAT OUT. > > THE PLATINUM CARD, IT’S IT’LL COST MORE TO GET THE CARD BUT ONE OF THE PERSONS AMEX IS OFFERING YOU, YOU CAN GET $200, $300 OFF YOUR OURA RING, AND NEARLY EVERYBODY HAS, NOW, ONE OF THESE KIND OF FITNESS MEASUREMENT DEVICES. IF YOU DON’T WANT THE RING YOU HAVE THE WHOOP BAND OR THE APPLE WATCH, YOU HAVE A FITBIT. > > SAMSUNG. > > WHAT’S NOT INCLUDED IN THAT IS THE SUBSCRIPTION FEE YOU HAVE TO PAY TO GET ALL THE FEATURES OF THIS RIGHT? > > YOU HAVE TO BUY THE HARDWARE AND HAVE A SUBSCRIPTION? > > YES, THAT’S WHY IT MAKES SINCE TO GIVE AWAY THE HARDWARE. THEY WANT TO GET AS MANY OF THESE THINGS OUT THERE SO PEOPLE ARE PAYING THE SUBSCRIPTION. CAROL: OR YOU COULD GO EXERCISE, JUST DO IT. > > HOW DO YOU KNOW HOW HARD YOU’RE WORKING? > > JON IF I’VE HAD ENOUGH STREAM OR RECOVERED ENOUGH TO GO TO THE GYM. THAT’S WHY I HAVE THE WHOOP. YOU ONLY PAY A PRESCRIPTION, THEY NEVER CHARGE FOR HARDWARE EXCEPT WHEN THEYDO. CAROL: YOU’RE PROBABLY MEASURING IT. > > MY OXYGEN LEVELS THROUGH THE ROOF. CAROL: ALL RIGHT. ALL RIGHT. GOOD TO KNOW. ALL RIGHT GUYS, THAT’S A WRAP. THEY’RE GOING TO CONTINUE OVER ON THE CLOSE AND WE’RE GOING TO CONTINUE ON BLOOMBERG BUSINESS. MAYBE THEY’RE GOING TO CONTINUE. I DON’T KNOW. SOUNDS SKETCHY. WE’LL SEE YOU AGAIN, SAME TIME, SAME PLACE TOMORROW. ROMAINE: OUR COVERAGE CONTINUE HERE’S ON BLOOMBERG TELEVISION "THE TALK," A CONVERSATION ABOUT THE MOVE IN THE A.I. TRADE WHEN WE COME BACK AFTER THE BREAK. STICK WITH US. "THE CLOSE" ON BLOOMBERG. ROMAINE: WELCOME BACK TO "THE CLOSE," TAKE A LOOK AT THE SCREEN BEHIND ME, IT’S RECORD HIGHS AKOSS THE BOARD FOR U.S. EQUITIES. 28TH HIGH FOR THE S & P THIS YEAR. THE TECH TRADE STARTS TO PICK UP OR REIGNITE ON THIS MONDAY AFTERNOON. CURIOUSLY ENOUGH YOU SAW A BID INTO SOME SAFE HAVEN ASSETS LIKE GOLD WHICH TRADED AT A RECORD HIGH ON THE DAY. TYPICALLY YOU DON’T SEE THE ONE-ON-ONE CORRELATION BETWEEN EQUITIES AND GOLD. BITCOIN PULLING BACK HERE ON THIS MONDAY AMP. AS FAR AS SOME OF THE INDIVIDUAL STORIES OUT THERE WE’RE KEEPING AN EYE ON KENVIEW, THE MAKERS OF BAND-AIDS AND TIE HEAL. IT WAS SPUN OFF JOHNSON & JOHNSON BACK IN 2023 AND NOW AT THE LOWEST LEVEL SINCE THE SPINOFF. SOME CONCERN ABOUT THE POTENTIAL FOR A REPORT BY THE WHITE HOUSE, THE TRUMP ADMINISTRATION THAT WOULD LINK THE MAIN INGREDIENT IN TYLENOL, ACETAMINOPHEN, TO AUTISM WE’RE WAITING FOR A STATEMENT BY THE WHITE HOUSE THIS AFTERNOON. DISNEY PULLING BACK ABOUT A PERCENT HERE AS THE CONTROVERSY OVER THE FALLOUT OVER JIMMY KIMMEL CONTINUES, AND KEEPING AN EYEN THE TECH SPACE A 4% JUMP FOR APPLE. PRIOR TO TODAY, APPLE HAD BEEN IN THE RED ON A YEAR TO DAY BASIS. THE GAIN TODAY PUSHES IT INTO THE GREEN. APPLIED MATERIALS GETTING A STRONG BID, THIS IS THE MAKE OVER WAFERS FOR THE SEMICONDUCTOR SECTOR. THAT ALSO GETTING A STRONG BID ON THE DAY AS WELL. THAT BRINGS US TO OUR TOP STORY THE RESILIENCY OF THE BIG TECH TRADE. NVIDIA TODAY BACK AT A RECORD HIGH, ITS FIRST SINCE MID AUGUST. THE PROFIT TAKING AND PULLBACK WE HAD SEEN OVER THE PAST FIVE WEEKS WAS LARGELY A FUNCTION OF CONCERN THAT THE A.I. TRADE HAD RUN OUT OF STEAM THAT INVESTORS AND A.I. SPIN HAD PEAKED BUT NEWS LAST WEEK THAT ORACLE IS IN DISCUSSIONS WITH META FOR A $20 BILLION CLOUD COMPUTING DEAL AND NEWS THAT NVIDIA WILL INVEST $100 BILLION IN OPEN AMPLE I. IS CAUSING A RETHINK OF THE RETHINK ON THE AMPLE INCH SPEND. DOESN’T HURT THAT THE WHITE HOUSE SEEMS TO BE FAVORING BIG TECH. FOR A LOT OF INVESTORS THE QUESTION IS, WITH TECH STOCKS AT RECORD HIGHS AND HISTORICALLY HIGH EARNINGS MULTIPLES WHY WOULD YOU EVEN TRY SWIM AGAINST THAT SNIDE JOINING US RIGHT NOW FOR HER INSIGHTS IS KIM FOREST, FUNNER AND CHIEF INVESTMENT OFFICER AND BEAU CHASM A LOT OF PEOPLE WERE WRITING OFF THE TECH TRADE A LITTLE BIT. WHEN YOU LOOK AT THE SPEND AND THE IDEA THAT THE WHITE HOUSE SEEMS TO BE ALL ON BOARD WITH A LOT OF IT, DOES THAT GIVE YOU ENOUGH CONFIDENCE THAT THIS TRADE WILL CONTINUE EVEN HIGH HER KIM: I THINK WE DO HAVE SOME RUNWAY AHEAD OF US. THE INVESTOR CLASS, REGULAR PEOPLE, LOVE PLAYING WITH L.L.M.’S, LARGE LANGUAGE MODELS. THEY’RE KICKING THE TARRANCE THINGS LIKE OPEN A.I. AND GEMINI AND THEN YOU KNOW A WHOLE HOST OF OTHERS. BUT OPEN A.I. WAS THE FIRST AND SO FAR A PRETTY GOOD NUMBER ONE, YOU KNOW, POLE POSITION, WHATEVER YOU THINK A.I. IN TODAY’S NEWS ABOUT NVIDIA INVESTING IN OPEN A.I. WHICH IS REALLY INVESTING IN ITSELF, YOU KNOW THAT SHOULD GIVE YOU A LITTLE BIT OF CHEER BUT ALSO A LITTLE BIT OF PAUSE. BECAUSE THEY REALLY ARE SELF-FUNDING, RIGHT? THAT’S THE WAY I LOOK AT THIS. AND SO IT GIVES YOU COMFORT THAT THEY HAVE ENOUGH MONEY TO INVEST IN THEMSELVES THROUGH OPEN AMPLE I. BUT IT’S STILL, YOU KNOW, KIND OF TAKING FROM ONE POCKET, PUTTING IT IN THE OTHER. ROMAINE: I’M GLAD YOU BRING THAT UP. WE’VE SEEN THIS WITH A FEW OTHER COMPANIES OUT THERE, CORE WEAVE AND A COUPLE OF OTHERS I’M FORGETTING ABOUT. THIS IDEA THAT THERE’S SELF-DEALING HERE. I KNOW FOR AT LEAST RIGHT NOW IT’S BENEFICIAL TO BOTH COMPANIES AND TO INVESTORS. BUT WHAT’S THE TOPPED THAT? AT SOME POINT I ASSUME THIS BREAKS FREE FROM THAT? KIM: ONE WOULD HOPE. YOU WANT TO SEE A USE CASE, DO I SOUND LIKE AN EX-SOFTWARE ENGINEER? YES. A USE CASE WHERE ALL OF THESE HUNDREDS OF BILLIONS OF DOLLARS INVESTED IN BUILDING OUT THE INFRASTRUCTURE AND A.I. ACTUALLY BEGIN TO PAY OFF IN PRODUCTIVITY. DID I MENTION THAT BAD WORD, PRODUCTIVITY? RIGHT NOW IT LOOKS LIKE, TO BUILD OUT THESE THINGS IS SO EXPENSIVE. I’M STILL NOT SURE WHAT PROBLEM IT IS THAT THEY’RE SOLVING. OTHER THAN PEOPLE REALLY DIDN’T LIKE TO USE GOOGLE TO SEARCH. IT’S MUCH MORE FUN TO USE OPEN A.I. OR ANOTHER LARGE LANGUAGE MODEL TO BE ABLE TO SEARCH AND GET A GOOD ANSWER. ROMAINE: THE BULLS WOULD SAY AT SOME POINT THIS BROADENS OUT. THE A.I. STORY ISN’T ABOUT DATA CENTERS AND CHIPS. IT’S ABOUT THE FINANCIAL COMPANY THAT USES IT TO, YOU KNOW, PRESUMABLY CUT JOBS AND IMPROVE PRODUCTIVITY OR OTHER COMPANIES THAT FIND A WAY TO MAKE THEIR OPERATIONS MORE EFFICIENT. DO YOU NOT SEE MAYBE A PLAUSIBLE BULLISH CASE IN THAT? KIM: NOT RIGHT NOW. I HATE TO BE THIS DOWN ON IT, I LOVE A.I., I USED TO MAKE A.I., I UNDERSTAND AMPLE I. BUT I’M LOOKING AT THE OUTPUT OF THESE SYSTEMS AND A LOT OF THEM ARE TOO WRONG TO REPLACE HUMANS. I’M NOT SURE THEY’LL EVER GET THERE IN THIS CURRENT INCARNATION OF LARGE LANGUAGE MODELS. I THINK WHAT THEY’VE DONE, ANY OF THE MAKERS PLAYING IN THIS SPACE, HAVE KIND OF SOLVED THE PROBLEM OF COMPUTERS UNDERSTANDING NATURAL LANGUAGE. THAT’S AWESOME. BUT DON’T MIX THAT UP WITH THINKING MACHINES. THEY ARE NOT. THERE ARE OTHER THINGS WE CAN DO USING THE SAME SORT OF TECHNOLOGIES -- TECHNIQUES, ANSWER, CREATING SOLUTIONS FOR NARROWER PROBLEMS. AND THAT IS WHERE I THINK THE PRODUCTIVITY COMES. SO I’M NOT A BELIEVER THAT WE’RE GOING TO HAVE, YOU KNOW, ALL THE DATA CENTERS THAT THEY CURRENTLY ARE ANTICIPATING, ALL OF THE THE CHAPLAIN: S -- CHIP SALES EVEN THROUGH THE YEAR 2030, BECAUSE RIGHT NOW THEY’RE BETTING ON SCALING. ADDING MORE -- FEED MANAGER DATA INTO THESE MACHINES TO MAKE THEM SMARTER. I DON’T THINK THAT’S THE WAY TO GO. A LOT OF COMPUTER SCIENTISTS BACK ME UP ON THIS. ROMAINE: AND WE SHOULD POINT OUT FOR VIEWERS THAT AREN’T FAMILIAR WITH YOUR BACKGROUND, YOU STARTED YOUR CAREER IN THIS SPACE BEFORE YOU WENT INTO INVESTING. I HAD A CHANCE TO CATCH UP WITH JEFF REHINTON EARLIER TODAY, WON A NOBEL PRIZE FOR THE WORK HE AND OTHERS DID, LAYING THE FOUNDATION FOR THIS. I DID ASK HIM SPECIFICALLY ABOUT THIS RACE TO SUPERINTELLIGENCE, THE A.G.I. AND THE IDEA OF HOW CLOSE WE ARE AND MORE IMPORTANTLY HOW RELIABLE IT IS. HE HAD A LOT OF CAVEATS ABOUT WHEN WE GET THERE BUT MORE IMPORTANTLY THAT ONCE WE GET THERE, WHAT DOES IT ACTUALLY LOOK LIKE? YOU SEEM TO BE KIND OF, I DON’T WANT TO MISCHARACTERIZE IN THE SKEPTICAL CAMP AS WELL. KIM: I’M HUGELY IN THE SKEPTICAL CAMP. I DON’T THINK WE HAVE TO, YOU KNOW, BOUNCE AROUND ABOUT THAT. AGAIN, I THINK NEURAL NETWORKS ARE PHENOMENAL. JEFFREY HINTON GOT ACKNOWLEDGED FOR HIS ROLE IN CREATING THAT, YOU KNOW, WAY TO PROGRAM. I THINK IT’S BRILLIANT. IT WORKS. BUT I DON’T KNOW THAT WE CAN REPLICATE THE HUMAN MIND BY READING THE INTERNET. AND THAT’S ESSENTIALLY WHAT THEY’RE DOING. MAYBE THEY’RE GOING TO THROW A FEW BOOKS IN THERE AS WELL. BUT I DON’T THINK THE HUMAN EXPERIENCE LENDS ITSELF, OR -- MAYBE IT’S THE COMPUTER EXPERIENCE LENDS ITSELF TO BEING ABLE TO UNDERSTAND EVEN WHAT THE AVERAGE HUMAN DOES. IT’S JUST A LOT OF DATA. AND IT’S -- THE WAY THE THING IS STRUCTURED, YOU CAN’T WEED OUT THE PARTS OF THE MACHINE THAT ARE REPORTING BAD ANSWERS QUICK ENOUGH. THAT’S THE ISSUE. TO BE ABLE TO GET RELIABLE ANSWERS. BUT HUMANS LEARN, NO, APPLES DON’T FALL UPWARDS, THEY FALL DOWNWARDS. IT’S A STUPID, TRITE ANSWER BUT EVERYBODY KNOWS THAT. ROMAINE: I SEE WHAT YOU’RE SAYING. WE NEED TO HAVE A LONGER CONVERSATION ABOUT THIS. WE’RE OUT OF TIME. KIM ALWAYS LOVE TALKING TO YOU. KIM FOREST, FOUNDER AND CHIEF INVESTMENT OFFICER AT BOCA CAPITAL. WHEN WE COME BACK, WE’LL REFOCUS ON KENVIEW. THIS IS "THE CLOSE" ON BLOOMBERG. ROMAINE: KENVIEW, THAT WAS THE CONSUMER PRODUCTS UNIT SPUN OUT OF JOHNSON & JOHNSON A FEW YEARS AGO, CLOSING NOW AT THE LOWEST SELF-SINCE THAT SPINOFF. THIS AFTER REPORTS THAT THE TRUMP ADMINISTRATION PLANS TO LINK THE ACTIVE INGREDIENT IN TYLENOL, ACETAMINOPHEN, TO AUTISM AND WARN PREGNANT WOMEN NOT TO TAKE IT. JOINING US IS SUSAN ANDERSON, SHE HAS A BUY RATING ON KENVIEW. SUSAN, I KNOW THERE’S A LOT WE DON’T KNOW AND WE’RE STILL WAITING TO HEAR FROM THE TRUMP ADMINISTRATION TODAY ON EXACTLY WHAT THEY PLAN TO RECOMMEND. I AM CURIOUS IF WE DO KNOW THAT THIS IS PRIMARILY TARGETED AT A RECOMMENDATION TOWARD PREGNANT WOMEN, DOES THAT MEAN THAT MAYBE THE SELLOFF WE’VE SEEN IN THE STOCK OVER THE PAST FEW DAYS IS OVERDONE? SUSAN: WE THINK IT’S OVERDONE. TYLENOL -- PREGNANT WOMEN IS NOT NECESSARILY THEIR AUDIENCE THEY DON’T MARKET TO PREGNANT WOMEN. IT’S JUST REALLY THE ONLY KNOWN DRUG OUT THERE THAT FOR NOW THE F.D.A. IS SAYING IS SAFE TO USE WHILE PREGNANT FOR PAIN OR FOR FEVER. AND SO I THINK IT’S THE GO-TO DRUG IF YOU ABSOLUTELY NEED TO TAKE THAT WHILE PREGNANT. BUT IT’S NOT, YOU KNOW, TYLENOL’S PRIMARY AUDIENCE. WE THINK IT’S PROBABLY 1% OR LESS OF SALES OUT THERE. SO I THINK THE BIGGEST -- BIGGER RISK FOR KENVIEW AND TYLENOL IS REALLY IF THE PUBLIC OPINION OF THE DRUG, YOU KNOW, STARTS TO SWAY IN A WAY WHERE OTHER CONSUMERS START TO BECOME CONCERNED USING TYLENOL AND THEN THAT COULD POTENTIALLY IMPACT SALES OR IF THERIAULT WE SAW BACK IN 2023 GET THROWN OUT, IT’S RIGHT NOW IN APPEALS COURT IF THAT’S ABLE TO COME BACK IN A NEW FORGE, THEN THERE COULD BE SOME MORE RISK THAT CAN BE TAKEN FINANCIALLY. JUST LOOKING AT THE POPULATION OF PREGNANT WOMEN ALONE TAKING TYLENOL IT’S PRETTY SMALL. ROMAINE: BUT YOU RAISE A BROADER POINT ABOUT THIS IDEA THAT EVEN IF THIS IS AN ORDER THAT’S DIRECTLY TARGETED AT RECOMMENDATIONS FOR PREGNANT WOMEN THERE ARE PEOPLE WHO MAY EXTRAPOLATE OVERALL THAT SOMEHOW IT’S NOT SAFE AND STOP TAKING IT. WE’RE TALKING ABOUT A COMPANY THAT HAS BEEN THROUGH A LOT OVER THE YEARS. I’M OLD ENOUGH TO REMEMBER THE CYANIDE LACING SCARE IN THE 19 80’S BUT I’M ALSO OLD ENOUGH TO REMEMBER HOW WELL, AT SOME POINT, HOW WELL THE MANAGEMENT AT JOHNSON AND JOHNSON AT THE TIME NAVIGATED THROUGH THAT. HAVE YOU HAD ANY DISCUSSIONS WITH MANAGEMENT AND HOW THEY MAY HANDLE THE PUBLIC FALLOUT FROM THIS? SUSAN: YEAH, I THINK IT’S NOT GOING TO BE ANYWHERE NEAR WHAT WE SAW IN THE 19 80’S. THEY’VE ALREADY BEEN THROUGH A LOT, LIKE YOU SAID. THEY’VE BEEN THROUGH THIS ENTIRE LAWSUIT IN 2023. SO IT’S PRETTY WELL KNOWN ALREADY BY THE PUBLIC. FROM WHAT I’VE HEARD, I THINK THE NEW STUDY, IT’S BASICALLY JUST A REINTERPRETATION OF AN INTISSING STUDY, I THINK IT’S STILL NOT GOING TO BE ABLE TO LINK AUTISM TO ASSET MIN FEN OR TYLENOL. I THINK THERE’LL MAYBE BE SOME CLOSER ANALYSIS DONE, AND FROM WHAT I’VE HEARD EARLY ON, MAYBE IT’LL BE PROLONGED USAGE, THEY’VE BEEN ABLE TO TIE IT A LITTLE MORE CLOSELY BUT IF I HAD TO GUESS I THINK THERE’S PROBABLY GOING TO NEED TO BE SOME FURTHER STUDIES DONE. SO YOU KNOW, I THINK THAT IT’S ALREADY PRETTY WELL KNOWN IN THE PUBLIC’S EYE AROUND ASSET MIN PHONE -- ACETAMINOPHEN. I DON’T THINK IT’S GOING TO BE ANYWHERE NEAR AS DAMAGING AS WHAT WE SAW IN THE OTHER CASE. ROMAINE: SUSAN, ALWAYS APPRECIATE IT, KEEPING AN EYE ON SHARES AT KENVIEW, DOWN 7% TODAY, AND OF COURSE NOW BACK DOWN TO THE LOWEST LEVELS SINCE THEY WERE SPUN OUT OF JOHNSON AND JOHNSON IN 2023. WE ARE WAITING RIGHT NOW TO HEAR FROM THE PRESIDENT OF THE UNITED STATES. THEY HAVE NOT CONFIRMED WHAT THEY WILL SAY SPECIFICALLY ABOUT TYLENOL. WE’LL HAVE COVERAGE OF THAT AS SOON AS IT HAPPENS. WHEN WE COME BACK WE’LL TALK ABOUT WHAT’S GOING ON ON THE ECONOMIC AGENDA. WE’RE EXPECTING AN UPDATE ON WHAT HAPPENED IN THE LATEST ROUND OF G.D.P. REPORTS AND A FRESH READ ON MONTHLY P.C.E. A CONVERSATION WITH MICHAEL FAROLI. HE JOINS US WHEN WE COME BACK AFTER THE BREAK HERE ON "THE CLOSE" HERE ON BLOOMBERG. ROMAINE: WELCOME BACK. TODAY, 40 YEARS AGO, ONE OF THE MOST CONSEQUENTIAL MOMENTS IN INTERNATIONAL FINANCE UNFOLDED IN SECRECY AT THE FAME PLAID ZHA HOTEL OVERLOOKING CENTRAL PARK IN NEW YORK CITY. IT WAS THERE, SEPTEMBER 22, 1985, WHEN THE U.K., FRANCE, JAPAN, JOINED FORCES TO HELP THE UNITED STATES DEVALUE THE DOLLAR. IT WAS A DAY OF INTRIGUE THAT BEGAN SHORTLY AFTER MIDNIGHT WHEN THE TREASURY DEPARTMENT CONDITION FIRMED NEWS REPORTS THAT THE FINANCE MINISTERS AND CENTRAL BANK HEADS OF THE FIVE LEADING NON-COMMUNIST INDUSTRIAL NATIONS WOULD MEET THAT SUNDAY. THE TREASURY REFUSED TO SHARE DETAILS BUT THE MEETING CAME ONE DAY BEFORE PRESIDENT RONALD REAGAN WAS SCHEDULED TO MAKE A SPEECH PROPOSING MEASURES TO PROMOTE U.S. EXPORTS. THE U.S. WAS IN A BIT OF A BIND AT THE TIME. THE U.S. HAD LARGELY, THROUGH ITS OWN MONETARY POLL CIRCUMSTANCES SEEN THE DOLLAR DEPRECIATE BY MORE THAN 60% IN THE EARLY 1980’S. THAT MADE U.S. GOODS TOO EXPENSIVE FOR OVERSEAS BUYERS. A TRADE DEFICIT WIDENING TO A RECORD. THE U.S. MANUFACTURING SECTOR SQUEEZED. CONGRESS STARTED TO THREATEN HAPHAZARD TRADE INTERVENTIONS. AT ABOUT 3:00 P.M. ON MONDAY, SEPTEMBER 23, THE FINANCE MINISTERS ISSUED A COMMUNIQUE IN A VERY STILTED LANGUAGE THAT LAID OUT THE CASE FOR HOW EXCHANGE RATES PLAY A ROLE IN ADJUSTING TRADE IMBALANCES AND SAID THEY STOOD, QUOTE, READY TO COOPERATE ON THE ORDERLY APPRECIATION OF THE MAIN NONDOLLAR CURRENCIES TO BETTER REFLECT FUNDAMENTAL ECONOMIC CONDITIONS. FOR DAYS FOLLOWING THIS SO-CALLED PLAZA ACCORD THAT WAS CONFUSION AS TO HOW THIS WOULD ALL WORK OUT. THE MARKET ENDED UP DOING A LOT OF HEAVY LIFTING THAT WOULD HAVE OTHERWISE INVOLVED THE TREASURY ACTIVELY BUYING AND SELLING CURRENCIES TO PUSH DOWN THE THAT ARE. OVER THE NEXT THREE YEAR, THE $WOULD INDEED SLUMP, INTENTIONALLY, BY MORE THAN 40%. WHILE THE PLAZA ACCORD WAS FRAUGHT WITH MANY PITFALLS THAT WOULD SEE THE DEAL UNRAVEL A FEW YEARS LATER, IT STILL STANDS AS A LANDMARK OF ECONOMIC COOPERATION BY INDIVIDUAL NATIONS TO DIRECTLY CONFRONT A GLOBAL PROBLEM. THE DOLLAR TO THIS DAY HAS NEVER REGAINED THE PRE-PLAZA ACCORD HIGHS. THAT MEETING ON THIS TAI 40 YEARS AGO WOULD DEVELOP INTO WHAT IS NOW THE G-7 FINANCE MINISTERS GROUP WHICH HAS CONTINUED TO MEET EVERY YEAR SINCE. AND THAT BRINGS US, TODAY, TO THE DOLLAR. FAILING TO HOLD ON TO ITS THREE-DAY GAIN AS THE MARKET TRIES TO DIGEST TODAY’S FEDSPEAK INCLUDING FROM FED PRESIDENT BETH HAM MACK WHO CHARACTERIZED INFLATION AS TOO HIGH BUT SAID THE FED MUST BE CAUTIOUS ON ITS EASING PATH. HERE’S J.P. MORGAN’S CHIEF ECONOMIST AND HA MACK’S REMARKS COME AS ANOTHER FED GOVERNOR WOULD LIKE TO SEE MORE AGGRESSIVE POLICIES. > > HA MACK’S POLICIES SEEMS TO BE MORE POPULAR. THE ARGUMENT FOR MORE RATE CUTS SEEMS UNLIKELY. ROMAINE: ONE THING THAT THEY BROUGHT UP, WHERE THE NEW -- WHETHER CONDITIONS ARE RESTRICTIVE OR NOT. AND THE IDEA OF WHAT KIND OF INFLATION RATE CAN WE LIVE UNDER? > > IT’S INTERESTING THE POINT ABOUT THE NEUTRAL RATE. THE DOLLAR HAS BEEN GENERALLY DECLINING. FINANCIAL CONDITIONS ARE EASY. STOCKS HIT A NEW HIGH TODAY. THE ARGUMENT THAT POLICY IS RESTRICTIVE PEOPLES TO NOD TO A LOT OF FINANCIAL CONDITIONS WE’RE SEEING. I THINK THE ARGUMENT THAT MYRON MADE WAS SLOWER MIGRATION GROWTH, DIDN’T QUITE SAY IT THAT WAY BUT THAT WAS THE CASE HE WAS TRYING TO MAKE. YOU KNOW, I DON’T THINK THERE’S REALLY BIG BUY-IN ON THE COMMITTEE FOR MAKING AN AGGRESSIVE SERIES OF POLICY MOVES BASED ON THE NEUTRAL RATE WHICH IS, YOU KNOW, ANYONE’S GUESS. ROMAINE: WITH REGARDS TO WHERE WE STAND IN THE ECONOMY, WE’LL GET AN UPDATE ON G.D.P. BUT IT SEEMS THINGS ARE OK BUT NOT GREAT. > > I THINK THAT’S EXACTLY RIGHT. OUTSIDE OF THE LABOR MARKET WE SEE G.D.P. GROWTH TO CONTINUE TO BE FINE. RETAIL SALES WAS FINE. IT’S JUST THAT JOB GROWTH HAS SLOWED QUITE A BIT. AND A LOT OF THAT DOES COME BECOME TO IMMIGRATION AND SLOWER TREND GROWTH. ROMAINE: IT’S ONE THING TO SAY JOB GROWTH IS THROWING BUT PEOPLE AREN’T NECESSARILY LOSING THEIR JOBS, OR ARE THEY? > > WE HAVEN’T SEEN A PICKUP IN LAYOFFS IN THE MONTH OR THE WEEKLY JOBLESS CLAIMS DATA. IT WAS LIKE A MATURING BUSINESS CYCLE BUT NOT ONE THAT’S CRACKING OR SHOWING SIGNS OF DISTRESS IN THE BUSINESS SECTOR. THE GOOD NEWS OF ALL THIS OF COURSE IS SLOWER LABOR GROWTH, HIGHER -- STEADY G.D.P. GROWTH MEANS ARIETTA METCALLY G.D.P. GROWTH, THAT HAS LOOKED BETTER THROUGH THE SECOND QUARTER AND I THINK THE THIRD QUARTER WILL BE ANOTHER GROWTH QUARTER. ROMAINE: THERE’S ALSO BEEN TALK ABOUT WAGE GROWTH, THE IDEA THAT AT LEAST BY CERTAIN MEASURES WAGE GROWTH HAS KEPT UP OR OUTPACED PRICES? > > WAGE GROWTH IS RUNNING 3% TO 4%, CONSISTENT WITH PRODUCTIVITY WHERE IT’S BEEN WE PROBABLY HAVEN’T CAUGHT UP TO ALL THE PRICE GAINS THAT HAVE OCCURRED IN 2021, 2022, 2023. BUT AT THE CURRENT TRENDS THIS IS A NICE EQUILIBRIUM IN THE LABOR MARKS. ROMAINE: DO YOU ANTIES THAT WILL CHANGE NEXT YEAR? ARE YOU EXPECTING A PRICE SHOCK FROM TARIFFS? > > WE DON’T THINK WE’RE DONE WITH THE TARIFFS. WE SAW IN THE MOST RECENT C.P.I. REPORT, WE’RE NOT DONE, A LOT OF BUSINESSES ARE TELLING US THAT, YOU KNOW, THIS IS SOMETHING THEY’LL CONTINUE TO PASS ALONG. I EXPECT AS WE GET INTO NEXT YEAR WE START TO FADE OUT AT SOME OF THESE HIGHER TARIFF PASS-THROUGH, PARTICULARLY IN GOODS PRICES AND INFLATION MODEL NEXT YEAR. ROMAINE: WHEN WE TALK ABOUT THE CAP X AND THE IDEA OF BUSINESS SPENDING. RESPONDSABLE FOR KEEPING THE NORMAL ECONOMIC, THE NUMBERS THAT WE LOOK AT. > > FIRST AFTER OF THE YEAR, ONE OF THE BIGGEST SURPRISES THE STRENGTH IN CAPITAL SPENDING. INITIALLY WE THOUGHT IT MAY HAVE BEEN FULLED FORWARD AD OF THE TARIFFS BUT IT’S CONTINUED PAST THE INITIAL STOCK. A LOT OF THE PAP X WE’RE SEEING IS IN THE TECH SPACE, WE’RE FLYING ON ONE ENGINE IN THAT REGARD. OUTSIDE OF TECH YOU DON’T SEE NOTABLE X NUMBERS. I THINK THE A.I. BOOM, LIKELY THE A.I. BOOM WHEN WE STRIP IT OUT OF THE DATA, VEALY WHAT’S POWERING CAP X AND CAP X AS I SAID HAS PROBABLY BEEN THE PART OF THE ECONOMY SUPPRESSING US. ROMAINE: HOW DO YOU MEASURE THE A.I. BOOM, OR WHATEVER YOU WANT TO CALL IT? PEOPLE SAY IT’S NOT ABOUT THE TECH COMPANY IT’S A PRODUCTIVITY STORY. AND YOU BUILD DATA CENTERS, THAT’S CONSTRUCTION JOBS. THERE’S SORT OF A READ THROUGH TO OTHER PARTS OF THE ECONOMY THAT AT SOME POINT SHOULD HAVE AN IMPACT. > > RIGHT. THE EASY PART IS, THE BUILDING OF THE DATA CENTERS, WHAT THAT MEANS FOR THE ECONOMY. PROBABLY ADDED ABOUT A HALF POINT TO FIRST HALF G.D.P. GROWTH ANNUALIZED. I THINK THE BIGGEST QUESTION -- AND ANOTHER THING I WOULD SAY THAT WE THINK WE KNOW, WE LOOK AT PRODUCTIVITY BY INDUSTRY WE DON’T SEE A LOT OF DISTINCTION RELATIVE TO A.I. INTENSITY. SO FAR THE PRODUCTIVITY WE’RE SEEING WE DON’T THINK IS AMOUNT I. DRIVE OR PRIMARILY A.I. DRIVEN. THE BIGGEST QUESTION AS WE LOOK AHEAD TO THE NEXT ONE TO FIVE YEAR WHAT KIND OF PRODUCTIVITY WE’RE GETTING. THE ESTIMATES THERE ARE ALL OVER THIS MAP. ROMAINE: PRODUCTIVITY HASN’T BEEN A STORY AT LEAST -- I CAN’T REMEMBER IN MY LIFE. WHEN I FIRST STARTED MY CAREER MY BOSS WOULD TELL ME TO LOOK AT PRODUCTIVITY. THERE WAS SOMETHING TO LOOK AT BUT AT SOME POINT THE NUMBERS NEVER BUDGED. DO WE NEED THAT IN THIS ECONOMY? WE’VE GOTTEN, WE’VE GONE HOW MANY DECADES WITHOUT ANY REAL MEANINGFUL UPTICK IN PRODUCTIVITY? > > LAST TIME WE HAD GOOD PRODUCTIVITY GROWTH WAS LATE 1990’S, EARLY 2000’S. THE DECADE AFTER THE G.F.C. WAS BAD PRODUCTIVITY. PROBABLY A DECADE OF BAD FEELINGS WHEN IT CAME TO THE ECONOMY. ON A MULTIYEAR HORIZON PEOPLE FEEL GOOD OR PAD ABOUT THE ECONOMY. MAYBE NOT MONTH-TO-MONTH. THAT’S STOCK MARKET AND EVERYTHING ELSE. FOR REALLY LONG STRETCHES IT’LL BE PRODUCTIVITY THAT DRIVE HOUSE PEOPLE FEEL ABOUT THE ECONOMY. ROMAINE: MICHAEL, THANKS. A CLOSER LOOK AT ECONOMIC CONDITIONS. WE DO WANT TO POINT OUT AT THE BOTTOM OF THE CLEAN WE’RE WAITING TO HEAR FROM THE PRESIDENT OF THE UNITED STATES ON WHAT THEY’RE CALLING A SIGNIFICANT MEDICAL AND SCIENTIFIC FINDING FOR AMERICA’S CHILDREN, SEVERAL NEWS REPORTS OUT THERE SAYING THIS COULD HAVE TO DO WITH AUTISM AND ANY OPPONENT -- POTENTIAL LINKS TO DRUGS OUT THERE ON THE MARKET. WE’LL KEEP AN EYE ON THAT AND BRING YOU FULL COVERAGE WHEN IT HAPPENS. WE WANT TO LOOK AT THE MARKETS MARLY IN THE AFTER HOURS SPACE HERE. WE ARE SEEING SOME MODEST MOVEMENT. THOSE SHARES HAD FALLEN 7% IN THE CASH SESSION. GETTING ABOUT .9% HERE AFTER HOURS. THERE’S BEEN SOME RUMORS ABOUT A POTENTIAL DRUG THAT THE ADMINISTRATION MAY BE RECOMMENDING AS A POTENTIAL TO COMBAT AUTISM, A DRUG THAT TEVA PHARMACEUTICALS MAKES. DISNEY SHARES SLIGHTLY LOWER ON THE DAY AS IS WARNER BROTHERS AND WE’RE SEEING ACTIVITY IN FIRE FLY AND PORTILLOS. THIS IS BLOOMBERG. > > WITH CLIMATE WEEK HERE IN NEW YORK, THE WORLD’S BIGGEST CON FAB BRINGING TOGETHER BUSINESS LEADERS AND POLICYMAKERS FOR HIGH LEVEL DISCUSSIONS ON CLIMATE ACTION. ONE COMPANY AT THE CENTER OF IT ALL IS ELECTRICAL ENGINEERING GIANT A.B.B. WHICH HELPS COMPANIES FUNCTION MORE EFFICIENTLY AND REDAWS THEIR CARBON FOOTPRINT. I CAUGHT UP WITH BRANDON SPENCER, PRESIDENT OF A.B.B. MOTION. HE TALKED ABOUT HIS COMPANY’S GOALS THIS WEEK. > > WE’RE HERE WITH SURROUNDED BY THOUGHT LEADERSHIP, TRYING TO SHOW WHAT A.B.B. IS DOING, OUR PRODUCT SOLUTIONS TO DECARBONIZE, HELP LOWER THE EMISSIONS FOOTPRINT. IT’S A GREAT OPPORTUNITY FOR US TO BE WITH CUSTOMERS, POLICY AMERICAS, AND EVERYONE HAVE A SEAT AT THE TABLE. > > I’M CURIOUS WHAT THE CONNECTION IS CORRELATION IS, BETWEEN WHAT CORRELATIONS ARE LOOKING TO DO ON THAT FRONT AND POLICYMAKERS. WE’VE SEEN A PULLBACK HERE IN THE UNITED STATES FROM VARIOUS GLOBAL CLIMATE ACCORDS AND WE’VE SEEN A LOT OF COMPANIES NOW BACK OUT OF SOME COMMITMENTS AS WELL. > > FOR US IT’S IMPORTANT TO HAVE A HIGH RATIO WE SPENT $100 MILLION OPENING UP A FACILITY IN NEW BERLIN, WISCONSIN. GEOTHERMAL, SOLAR POWER, ZERO WASTE LANDFILL, THESE KINDS OF THINGS. FOR US THERE’S A BUSINESS CASE BEHIND US. IT’S IMPORTANT TO SHOW OUR CUSTOMERS WE’RE DOING IT WHILE OFFERING THEM SLOUGHS FOR THEM TO DO IT. WHILE POLICIES CHANGE, THERE’S WAYS AND FLOWS WITH THAT, WE THINK STAYING CONSISTENT, REALLY DRIVING THE BUSINESS CASE FOR THESE CHANGES IS IMPORTANT. ROMAINE: HAVE YOU SEEN A SHIFT IN THE WAY THAT THESE TYPES OF PROGRAMS ARE TALKED ABOUT OR MARKETED? SEEMED LIKE A FEW YEARS AGO IT WAS ABOUT SAVING THE ENVIRONMENT. SAVING THE WORLD. THERE WAS ALWAYS A BUSINESS CASE THERE. BUT I AM CURIOUS IF THAT NOW HAS TO BE FRONT AND CREPT HER > > YEAH, I THINK YOU HAVE TO GO GOOD FOR THE WALLET AND GOOD FOR THE PLANET. IN THE PAST IT WAS MAYBE A LITTLE REVERSE OF THAT. SO WE SEE A HIGHER FOCUS ON THE BUSINESS CASE FOR JUSTIFICATION OF IT. STILL AN ATTITUDE AND DESIRE TO DO IT. CERTAINLY FOR US THAT’S SOMETHING WE’RE PROUD OF AT A.B.B. ROMAINE: AND FOR THOSE FOLKS WHO AREN’T FAMILIAR WITH A.B.B., YOU HELP A LOT OF OTHER COMPANIES BUILD OUT MORE EFFICIENT BUILDINGS AND FACILITIES AND THINGS LIKE THAT AS WELL WHERE IS THE PRIMARY FOCUS RIGHT NOW? SPECIFIC INDUSTRIES OR SPECIFIC TYPES OF STRUCTURES AND FACILITIES YOU’RE FOCUSING ON? > > WE’RE VERY DIVERSE, DATA CENTERS GETS A LOT OF ATTENTION, WITH THE ENERGY DEMAND. BUT WE’RE DIVERSE IN THE INDUSTRIES WE SERVE. COULD BE MARINE INDUSTRY, FOOD AND BEVERAGE, ACROSS THE SPECTRUM. A.B.B., WE’RE THERE TO AUTOMATE THEM, DIGITALIZE THEM AND ELECTRIFY THEM. THAT’S WHAT WE’RE THERE TO DO. , IN EFFICIENCY THE KEY THING WE’RE TALKING ABOUT. ROMAINE: IS THAT MORE DIFFICULT NOW PARTICULARLY IN LIGHT OF DATA CENTERS? EARLIER TODAY BEFORE THIS INTERVIEW THERE WAS YET ANOTHER BIG INVESTMENT ANNOUNCEMENT IN THE A.I. SPACE, ONE THAT OSTENSIBLY IS ABOUT THE POWER RATHER THAN JUST COMPUTERS AND SERVICE THEMSELVES. WHAT’S THAT BUSINESS LOOKING LIKE RIGHT NOW? > > A STRONG GROWTH CURVE OBVIOUSLY HAPPENING IN BUILDING OUT THE INFRASTRUCTURE FOR THESE. HOW DO YOU GET THEM ONLINE? WE HAVE TECHNOLOGY ASSISTING WITH THAT GETTING POWER TO THESE FACILITIES. IF I GO BACK TO ENERGY EFFICIENCY WE CAN PUT IT BACK ON THE GRID BY USING TECHNOLOGY THAT’S AVAILABLE NOW. WE’RE TALK TAG CUSTOMERS ABOUT THAT. IT’S NOT ONLY NEW AND WAITING FOR NEW PRODUCTS AN OFFERINGS, IT’S LET USE SOME OFFERINGS WE HAVE TODAY IN A MORE INTELLIGENT WAY IN ORDER TO HAVE LESS EMISSIONS AND MORE ENERGY. ROMAINE: IS THAT ABOUT SOURCING THE POWER ORERS TOKING THE POWER YOU ALREADY HAVE? > > SOURCING THE POWER, STORAGE IS AN UP AND COMING TALKING. WHEN YOU’RE TALKING GIGAWATTS AND THESE SORTS OF THING, HUGE FACILITIES, ENOUGH TO POWER HUNDREDS OF THOUSANDS OF HOMES, STORAGE IS MORE CHALLENGING. IT’S MORE ABOUT SOURCING AND HELPING YEN RATE THAT IN THE MOST EFFICIENT WAY. ROMAINE: ARE THERE CONCERNS FROM YOUR CLEARANCE POTENTIAL CLIENTS ABOUT THE STRESS ON THE GRID AND MAYBE FEARS THAT THEY WON’T HAVE ENOUGH POWER TO, YOU KNOW, TO FUEL THEIR CENTERS? > > THERE’S A COUPLE OF TOPICS. TIMING, HOW LONG UNTIL YOU CAN GET A GRID CONNECTION. A LOT OF CUSTOMERS TALKING ABOUT MIND THE METER, WHAT CAN THEY DO TO YEN RATE THEIR OWN ENERGY. ROMAINE: LET’S GO TO WASHINGTON WHERE THE PRESIDENT OF THE UNITED STATES IS MAKING AN ANNOUNCEMENT. PRESIDENT TRUMP: I WANT TO THANK THE MAN WHO BROUGHT THIS ISSUE TO THE FOREFRONT OF AMERICAN POLITICS ALONG WITH ME. WE MET IN MY OFFICE, IS IT LIKE 20 YEARS AGO, BOBBY? PROBABLY 20 YEARS AGO IN NEW YORK. I WAS A DEVELOPER AS YOU PROBABLY HEARD. I ALWAYS HAD VERY STRONG FEELINGS ABOUT AUTISM AND HOW IT HAPPENED, WHERE IT CAME FROM. AND HE AND I, THE WORD GOT OUT. I WOULDN’T SAY THAT PEOPLE WERE VERY UNDERSTANDING OF WHERE WE WERE BUT IT’S TURNING OUT THAT WE UNDERSTOOD A LOT MORE THAN A LOT OF PEOPLE WHO STUDIED IT, WE THINK. AND I SAY WE THINK BECAUSE I DON’T THINK THEY WERE REALLY LETTING THE PUBLIC KNOW WHAT THEY KNEW. THANKS AS WELL TO THE DIRECTOR OF THE NATIONAL INSTITUTE OF HEALTH, DR. JAY BOTTACHARIA, THE ADMINISTRATOR OF THE CENTERS FOR MEDICINE AND MEDICAID SERVICES, DR. OZ, AND ACTING ASSISTANT SECRETARY OF HH.S., DR. DOROTHY FINK. THANK YOU ALL. THANK YOU, DOROTHY, VERY MUCH. THE METEORIC RISE IN AUTISM IS AMONG THE MOST ALARMING PUBLIC HEALTH DEVELOPMENTS IN HISTORY. THERE’S NEVER BEEN ANYTHING LIKE THIS. JUST A FEW DECADES AGO, ONE IN 10,000 CHILDREN HAD AUTISM. SO THAT’S NOT A LONG TIME. AND I’VE ALWAYS HEARD, YOU KNOW, THEY SAY A FEW BUT I THINK IT’S A LOT LESS TIME THAN THAT. USED TO BE ONE IN 20,000. THEN ONE IN 10,000. AND I WOULD SAY THAT’S PROBABLY 18 YEARS AGO. AND NOW IT’S ONE IN 31 BUT IN SOME AREAS IT’S MUCH WORSE THAN THAT IF YOU CAN BELIEVE IT. ONE IN 31. AND I GAVE NUMBERS YESTERDAY FOR BOYS IT’S ONE IN 2. I WAS TOLD THAT’S IN CALIFORNIA WHERE THEY HAVE FOR SOME REASON A MORE SEVERE PROBLEM. BUT WHETHER IT’S ONE IN 12 OR ONE IN 31, CAN YOU IMAGINE? THAT’S DOWN FROM ONE IN 20,000, THEN ONE IN 10,000. AND NOW WE’RE AT THE LEVEL OF ONE IN 12 IN SOME CASES FOR BOYS. ONE IN 31 OVERALL. SO SINCE 2000, AUTISM RATES HAVE SURGED BY MUCH MORE THAN 400%. INSTEAD OF ATTACKING THOSE WHO ASK QUESTIONS, EVERYONE SHOULD BE GRATEFUL FOR THOSE WHO ARE TRYING TO GET ANSWERS TO THIS COMPLEX SITUATION. YOU KNOW THERE’S SOMETHING ARTIFICIAL. THEY’RE TAKING SOMETHING. AND BY THE WAY, I THINK I CAN SAY THERE ARE CERTAIN GROUPS OF PEOPLE THAT DON’T TAKE VACCINE, DON’T TAKE ANY PILLS THAT HAVE NO AUTISM. THAT HAVE NO AUTISM. DOES THAT TELL YOU SOMETHING? THAT’S CURRENTLY. IS THAT A CORRECT STATEMENT BY THE WAY? MR. KENNEDY: THERE ARE SOME STUDIES THAT SUGGEST WITH THE AMISH, FOR EXAMPLE. PRESIDENT TRUMP: THE AMISH. I HEARD NONE. BOBBY WANTS TO BE VERY CAREFUL WITH WHAT HE SAYS AND HE SHOULD, BUT I’M NOT SO CAREFUL. THE AMISH, FOR EXAMPLE, HAVE ESSENTIALLY NO AUTISM. FIRST EFFECTIVE IMMEDIATELY THE F.D.A. WILL BE NOTIFYING PHYSICIANS THAT THE USE OF ASSET -- HOW DO WE SAY THAT? ACETAMINOPHEN. IS THAT OK? WHICH IS BASICALLY COMMONLY KNOWN AS TYLENOL. DURING PREGNANCY CAB ASSOCIATED WITH A VERY INCREASED RISK OF AUTISM. SO TAKING TYLENOL IS NOT GOOD. ALL RIGHT. I’LL SAY IT. IT’S NOT GOOD. FOR THIS REASON, THEY ARE STRONGLY RECOMMENDING THAT WOMEN LIMIT TYLENOL USE DURING PREGNANCY UNLESS MEDICALLY NECESSARY. THAT’S, FOR INSTANCE, CASES OF EXTREMELY HIGH FEVER THAT YOU FEEL YOU CAN’T TOUGH IT OUT. YOU CAN’T DO IT. I GUESS THERE’S THAT. IT’S A SMALL NUMBER OF CASES, I THINK. BUT IF YOU CAN’T TOUGH IT OUT IF YOU CAN’T DO IT, THAT’S WHAT YOU HAVE TO DO. YOU’LL TAKE A TYLENOL. BUT IT’LL BE VERY SPARINGLY. IT CAN BE SOMETHING THAT’S VERY DANGEROUS TO THE WOMAN’S HEALTH. IN OTHER WORDS, A FEVER THAT’S VERY, VERY DANGEROUS AND IDEALLY A DOCTOR’S DECISION BECAUSE I THINK YOU SHOULDN’T TAKE IT, YOU SHOULDN’T TAKE IT DURING THE ENTIRE PREGNANCY. THEY MAY TELL YOU TOWARD THE END OF THE PREGNANCY, YOU SHOULDN’T TAKE IT THE ENTIRE. SHOULDN’T GIVE THE CHILD A TYLENOL EVERY TIME HE GOES AND HAS A SHOT. YOU SHOULDN’T GIVE A TYLENOL TO THAT CHILD. ALL PREGNANT WOMEN SHOULD TALK TO THEIR DOCTORS FOR MORE INFORMATION ABOUT LIMITING THE USE OF THIS MEDICATION. WHILE PREGNANT. SO IDEALLY YOU DON’T TAKE IT AT ALL IF YOU HAVE TO, IF YOU CAN’T TOUGH IT OUT IF THERE’S A PROBLEM, YOUR GOING TO END UP DOING IT. THE OTHER THING THAT I CAN TELL YOU THAT I’LL SAY THAT THEY WILL MAYBE SAY A LITTLE BIT LATER, BUT I THINK WHEN YOU GO FOR THE SHOT YOU DO IT OVER A FIVE-TIME PERIOD. TAKE IT OVER FIVE TIMES. OR FOUR TIMES. BUT YOU TAKE IT IN SMALLER DOSES. AND SPREAD IT OUT OVER A PERIOD OF YEARS. AND THEY PUMP SO MUCH STUFF INTO THOSE BEAUTIFUL LITTLE BABIES IT’S A DISGRACE. I DON’T SEE IT. I THINK IT HAS -- I THINK IT’S VERY BAD. THEY’RE PUMPING, LOOKS LIKE THEY’RE PUMPING INTO A HORSE. YOU HAVE A LITTLE CHILD, LITTLE FRAGILE CHILD, YOU’RE GOING TO -- A VAT OF 0 DIFFERENT VACCINES, I G.80 DIFFERENT BLENDS. AND THEY PUMP IT IN. IDEALLY, A WOMAN WON’T TAKE TYLENOL. AND ON THE VACCINES, IT WOULD BE GOOD INSTEAD OF ONE VISIT WHERE THEY PUMP THE BABY, LOAD IT UP WITH STUFF, YOU DO IT OVER A PERIOD OF FOUR TIMES OR FIVE TIMES. I WAS -- I MEAN I’VE BEEN SO INTO THIS ISSUE FOR SO MANY YEARS BECAUSE I COULDN’T UNDERSTAND HOW A THING LIKE THIS COULD HAPPEN. YOU KNOW IT’S ARTIFICIALLY INDUCED. IT’S NOT LIKE SOMETHING, WHEN YOU GO FROM ALL OF THOSE, YOU KNOW HEALTHY BABIES TO A POINT WHERE I DON’T EVEN KNOW STRUCTURALLY IF A COUNTRY CAN AFFORD IT, AND THAT’S THE LEAST OF THE PROBLEMS TO HAVE FAMILIES DESTROYED OVER THIS IS JUST SO TERRIBLE. I ALSO -- WE’VE ALREADY DONE THIS. WE WANT NO MERCURY IN THE VACCINE. WE WANT NO ALUMINUM IN THE VACCINE. THE M.M.R., I THINK SHOULD BE TAKEN SEPARATELY. THIS IS BASED ON WHAT I FEEL THE MUMPS, MEASLES, AND THE THREE SHOULD BE TAKEN SEPARATELY. AND IT SEEMS TO ME WHEN YOU MIX THEM THERE COULD BE A PROBLEM. SO THERE’S NO DOWNSIDE IN TAKING THEM SEPARATELY. IN FACT, THEY THINK IT’S BETTER. SO LET IT BE SEPARATE. THE CHICKENPOX IS ALREADY SEPARATE BECAUSE WHEN THAT GOT MIXED, IN I GUESS THEY MADE IT FOUR FOR A WHILE, IT WAS REALLY BAD SO THEY MADE CHICKENPOX. INDIVIDUALLY THEY’RE OK. WHEN YOU MIX THEM, SOMETHING MAYBE HAPPENS. SO THERE’S NO DOWNSIDE IN DOING IT. IT’S NOT LIKE OH IF YOU DO IT, BAD THINGS. NO. IT’S ONLY GOOD SIDE. AND IT MAY NOT HAVE THAT MUCH OF AN IMPACT. BUT IT MAY HAVE A BIG IMPACT. LET THOSE BE TAKEN SEPARATELY. THEN HEPATITIS B IS SEXUALLY TRANSMITTED. THERE’S NO REASON TO GIVE A BABY THAT’S ALMOST JUST BORN HEPATITIS B. SO I WOULD SAY WAIT UNTIL THE BABY IS 12 YEARS OLD. AND FORMED. AND TAKE HEPATITIS B. AND I THINK IF YOU DO THOSE THINGS IT’S GOING TO BE A WHOLE DIFFERENT -- IT’S GOING TO BE A REVOLUTION IN A POSITIVE SENSE IN THE COUNTRY. THE F.D.A. WILL BE UPDATING THE LABEL OF AN EXISTING DRUG TO REFLECT POTENTIAL BENEFITS IN REDUCING SOME AUTISM SYMPTOMS. THIS GIVES HOPE TO THE MANY PARENTS WITH AUTISTIC CHILDREN THAT IT MAY BE POSSIBLE TO IMPROVE THEIR LIVES. THAT’S ONE OF THE THINGS I’M VERY, VERY HAPPY ABOUT ABOUT. THIS WAS MOSTLY GOING TO BE ON HOW NOT TO HAVE THE CHILD AFFECTED, BUT WE’VE LEARNED SOME PRETTY GOOD THINGS ABOUT CERTAIN ELEMENTS OF GENIUS THAT CAN BE GIVEN TO A BABY AND THE PAY BY CAN GET BETTER. AND IN SOME CASES MAYBE SUBSTANTIALLY BETTER. NOT GOING TO BE EASY. BE A LOT EASIER IF IT DIDN’T HAPPEN IN THE FIRST PLACE AS THESE GREAT PARENTS FULLY UNDERSTAND, RIGHT? THEY FULLY UNDERSTAND. FEEL SO TERRIBLY FOR -- I HAVE SO MANY FRIENDS WITH AUTISTIC CHILDREN. IT’S A TOUGH SITUATION. FINALLY, TO HELP REACH THE ULTIMATE GOAL OF ENDING THE AUTISM FEVER, THE N.I.H. WILL BE ANNOANNOUNCING 13 MAJOR GRANT AWARDS FROM THE AUTISM DATA SCIENCE INITIATIVES TO ME THAT’S THE LEAST IMPORTANT. IT’S NOT EVEN A MONEY THING AT THIS POINT. THERE’S SO MUCH MONEY. BUT THEY HAVE TO CO-DO -- AND THEY HAVE TO MOVE QUICKLY. WHEN THE ALTERNATIVE IS THAT NOTHING BAD CAN HAPPEN, LET’S DO IT NOW. I WAS JUST SAYING TO BOBBY AND THE GROUP, LET’S DO IT NOW. NOTHING BAD CAN HAPPEN. IT CAN ONLY GOOD HAPPEN. BUT WITH TYLENOL DON’T TAKE IT.

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Gold Hits Record on Rate Cut | The Close 9/22/2025

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 Fidelity Investments’ Jurrien Timmer, Piper Sandler’s Anna Andreeva, University of Toronto’s Dr. Geoffrey Hinton, Glenmede’s Jason Pride, Bokeh Capital Partners’ Kim Forrest, Canaccord Genuity’s Susan Anderson, JP Morgan’s Mike Feroli. (Source: Bloomberg)

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