US Inflation Picks Up, Eroding Paychecks — The Close 6/10/2026

[00:00:01] Speaker 1: THE COUNTDOWN IS ON. EVERYTHING YOU NEED TO GET THE EDGE AT THE END OF THE MARKET DAY. [00:00:07] Romaine Bostick: THIS IS THE CLOSE. POLITICAL TENSIONS RISE, RISK APPETITE WANES, AND THE A.I. TRADE GETS SQUEEZED IN BETWEEN. LIVE FROM STUDIO 2, HERE AT BLOOMBERG HEADQUARTERS IN NEW YORK, I'M ROMAINE BOSTICK. [00:00:21] Katie Griefeld: I'M KATIE GRIEFELD. WE'RE KICKING YOU OFF TO THE CLOSING BELL. HERE IN THE U.S., WE HAVE A SELL-OFF ON OUR HANDS. THE S&P 500, PRETTY DANG CLOSE TO SESSION. WE'VE HAD CPI THIS MORNING COMING IN AS EXPECTED. STILL PRETTY HOT COMPARED TO RECENT HISTORY, BUT AS EXPECTED. BUT IT'S REALLY THE BACK AND FORTH BETWEEN THE U.S. AND IRAN THAT SEEMS TO BE AT THE CENTER OF THE MARKET MIND RIGHT NOW AS WE COUNT DOWN TO ORACLE EARNINGS, WHICH MIGHT EXPLAIN SOME OF THE JITTERS IN THE NASDAQ 100 RIGHT NOW. BUT TAKE A LOOK AT WHAT BRENT IS DOING. STARTING TO SEE SOME SIGNS OF LIFE THERE. WE'VE BEEN TALKING ABOUT HOW ENERGY HASN'T BEEN QUITE REACTING TO THE BACK AND FORTH. WE'VE BEEN TALKING ABOUT THE MARKET. WE'VE BEEN TALKING ABOUT IT. WE'LL SEE BRENT HIGHER BY ABOUT 2% RIGHT NOW. [00:01:08] Romaine Bostick: TREASURY YIELDS ALSO MOVING A LITTLE BIT HIGHER ON THE HEALS OF THAT CPI PRINT. THE TEN-YEAR TREASURY YIELD HIGHER BY ABOUT TWO BASIS POINTS. TREASURY YIELD HIGHER BY THE TEN-YEAR TREASURY YIELD HIGHER [00:01:15] Speaker ?: YIELD HIGHER. [00:01:15] Romaine Bostick: IT IS A TEN-YEAR TREASURY YIELD HIGHER. IT WAS HIGH. THE HIGHEST ANNUAL RATE SINCE 2023. IT ALSO SUGGESTED CONSUMERS ARE PULLING BACK ON NON-ESCENTIAL SPENDING. THEN YOU HAD A SEPARATE REPORT THAT COMBINES THE INFLATION FIGURES WITH WAGE DATA AND THAT SHOWED REAL AVERAGE HOURLY EARNINGS DROPPING THE MOST IN MORE THAN THREE YEARS. [00:01:37] Speaker 4: I THINK ESSENTIALLY WE'RE GOING TO GET A 12-0 VOTE TO DO NOTHING. THE SAFEST THING THE FEDERAL RESERVE CAN DO POLITICALLY AND ALSO ECONOMICALLY I THINK IS JUST TO DO NOTHING HERE. INFLATION IS HIGHER THAN THEY WANT. BUT I THINK THERE'S A GOOD CHANCE THAT THIS MONTH MAY WILL ACTUALLY TURN OUT TO BE THE HIGH WATER MARK FOR INFLATION IN THIS CYCLE. [00:01:56] Romaine Bostick: HIGH WATER MARK. WE HOPE SO. A SHARP REMINDER THOUGH JUST THREE HOURS AGO THAT THE INSTABILITY OF U.S. FOREIGN POLICY WELL REMAINS UNSTABLE. THE PRESIDENT TODAY VACILLATING BACK TO THREATS OF INTENSIFIED ATTACKS ON IRAN. AFTER ALL REMEMBER IT IS THE IRAN WAR THAT KICKED OFF AT THE END OF FEBRUARY AND THE RESULTING SURGE IN GAS PRICES THAT IS LARGELY RESPONSIBLE FOR THE HEADLINE INFLATION RATE ALMOST DOUBLING IN JUST THREE MONTHS. NOW THE AGGRESSIVE RHETORIC FROM THE WHITE HOUSE IT COMES AT A PRECIPITOUS TIME FOR EQUITY MARKETS WHICH ARE ALREADY UNDER PRESSURE FROM THE SHIFTING SENTIMENT AROUND THAT MARKET LEADING HEAVY WAY TECH NAMES. THAT SENTIMENT TO BE PUT TO THE TEST AGAIN IN JUST ABOUT ONE [00:02:35] Katie Griefeld: EARNINGS. THE EARNINGS ARE GOING TO LAND AT A VERY INTERESTING TIME WHEN IT COMES TO AI SENTIMENT BUT AS WE HAVE BEEN TALKING ABOUT ON THE SHOW OVER THE PAST COUPLE OF DAYS YOU HAVE SEEN BREATH COME BACK INTO THIS MARKET AND THAT IS NEATLY ILLUSTRATED BY THE CHART BEHIND ME. WHEN YOU LOOK AT THE SHIFTING SENTIMENT OF THE SHIFTING AMOUNT OF THE SHIFTING SENTIMENT, THEY ARE TRADING ABOVE THEIR 200-DAY MOVING AVERAGE. YOU CAN SEE THE BREATH REALLY TOOK A HIT WHEN IT COMES TO THE KICKOFF OF THAT WAR REALLY COMING DOWN. NOW YOU CAN SEE ABOUT 61% OF MEMBERS OF THE S&P 500 ARE TRADING ABOVE THEIR 200-DAY MOVING AVERAGE. THINK ABOUT WHERE WE WERE AGAIN WHEN IT COMES TO MARCH AND APRIL. THINK ABOUT WHERE WE WERE ABOUT A YEAR AGO RIGHT NOW. WHAT IS INTERESTING, IF YOU ZOOM IN THERE, YOU CAN SEE THAT AS THE INDEX HAS MOVED DOWN, AS WE HAVE SEEN THESE TECH TRADERS REALLY COME TO THE SURFACE AND MANIFEST IN A SELLOFF, YOU CAN SEE THAT BREATH HAS ACTUALLY IMPROVED IN OTHER PARTS OF THE MARKET. THERE ARE STILL POCKETS OF RESILIENCE TO BE FOUND OUT THERE EVEN AS WE START TO SEE SOME OF THIS TECH TRADE START TO WOBBLE. [00:03:46] Romaine Bostick: AND AS WE KICK YOU OFF TO THE CLOSE, ON THIS WEDNESDAY AFTERNOON, WE WANT TO BRING ANUSHKA GUPTA INTO THE CONVERSATION, HEAD OF AMERICA'S AT GOLDMAN SACHS APEX. ANUSHKA, GREAT TO HAVE YOU HERE. [00:03:56] Anushka Gupta: THANKS FOR HAVING ME. [00:03:58] Romaine Bostick: I KNOW YOU SAID PROBABLY A MORE FAVORABLE PURCHASE, YOU DON'T HAVE TO GET TOO OBSESSED ABOUT SOME OF THESE DAY-TO-DAY MOVES AND YOU FOCUS A LITTLE BIT MORE ON THE LONG-TERM. BUT I DO WANT TO START OFF WITH THE SHORT-TERM. PRIMARILY BECAUSE IT DOES SEEM LIKE IT IS HAVING AN INFLATION AND INTEREST RATES. [00:04:22] Anushka Gupta: I AM CURIOUS ABOUT WHAT YOU MAKE OF THE DEVELOPMENTS OVER THE LAST FEW WEEKS. I AM CURIOUS ABOUT WHAT YOU MENTIONED AND WHAT YOU MENTIONED IS. IT IS A VOLATILE PERIOD NOT TOO SURPRISING FROM WHAT THE REST OF THE YEAR HAS BEEN HONESTLY. LIKE YOU MENTIONED, FAMILY OFFICES HAVE A LONG-TERM HORIZON. THEY WOULD STAND THIS VOLATILITY AND IF ANYTHING, USE PERIODS OF IMMENSE DISLOCATION TO STEP IN AND BE OPPORTUNISTIC. FROM AN OVERALL S&P AND EQUITY MARKET STANDPOINT, WE REMAIN PRETTY CONSTRUCTIVE. LIKE YOU MENTIONED, A LOT OF THAT IS UNDERPINNED BY EARNINGS GROWTH, WHICH WE'VE SEEN ACCELERATE QUITE EARNINGS. WE ARE TALKING ABOUT THE EARNINGS PICTURE. WE ARE TALKING ABOUT THAT NEXT YEAR. RELATING TO THE MACRO PICTURE BROADLY, THE INFLATION REPORT WAS LARGELY IN LINE WITH EXPECTATIONS. [00:05:07] Romaine Bostick: THE PAYROLLS REPORT WAS ENCOURAGING. INVESTORS CONTINUE TO SPEND TIME ON THAT SHORT-TERM, BUT THEY ARE NOT MAKING MEANINGFUL PORTFOLIO SHIFTS. YOU HAVE CONFIDENCE THE EARNINGS PICTURE WILL HOLD UP. WE JUST HAD TWO EARNINGS SEASONS THAT FOURTH QUARTER AND THE FIRST QUARTER. THOSE FINAL NUMBERS THAT WE SEE FOR THE S&P IN AGGREGATE ARE GOING TO BE HIGHER THAN WHAT MOST PEOPLE PREDICTED COMING INTO THIS YEAR. [00:05:27] Anushka Gupta: THAT'S EXACTLY RIGHT. WE ARE VERY CONSTRUCTIVE ON THE EARNINGS CYCLE. WE SEE THAT PAYBACK FROM SOME OF THE CAPEX SPENDING STARTING TO FLOW THROUGH. IT IS SOMETHING WE ARE EXCITED ABOUT. DO YOU THINK THIS YEAR THE LEVEL OF GROWTH WE HAVE SEEN FROM EARNINGS PERSPECTIVE, ESPECIALLY IN THE FIRST QUARTER, IS PRETTY PHENOMENAL. [00:05:42] Katie Griefeld: WHEN YOU THINK ABOUT WHAT WE ARE SEEING IN TERMS OF EARNINGS GROWTH, WHICH HAS REALLY BEEN UNDERPINNING A LOT OF THE BULLISH SENTIMENT UP UNTIL THIS POINT. YOU POINT OUT IN YOUR NOTES THAT YOU THINK ABOUT THE PERCENT OF EPS GROWTH THAT HAS BEEN CONCENTRATED AMONG THE BENEFICIRIES OF AI INFRASTRUCTURE INVESTMENT, THAT IS AROUND 50 PERCENT TODAY. YOU THINK ABOUT THIS BROADDENING THAT WE HAVE BEEN TALKING ABOUT, THE RESILIENCY OF OTHER SECTORS OUTSIDE OF AI, GIVEN THAT A LOT OF THE EARNINGS PICTURE AND THE OPTIMISM AND IMPROVEMENT THAT WE ARE SEEING THERE DOES TIE BACK TO AI. WHAT DOES THAT PORTEND FOR THIS IMPROVING BREATH THAT WE HAVE SEEN? CAN THAT CONTINUE? [00:06:21] Anushka Gupta: WE THINK IT CAN CONTINUE. THE S&P IS A MARKET-WEIGHTED INDEX AND WE HAVE SEEN THAT CONCENTRATION WITH THE TOP 10 STOCKS COMPRISING NEARLY 40% OF THE INDEX FOR A REASON. THAT CONCENTRATION IS A RESULT OF THE BENEFIT WE HAVE SEEN FROM AN EARNINGS PERSPECTIVE. A LOT OF THAT GROWTH IN TERMS OF WHAT WE ARE RECOMMENDING CLIENTS INVEST IN IS IN THE AI INFRASTRUCTURE SEGMENT OF THE MARKET WHERE YOU HAVE SEEN THE MOST RETURN FROM AN EARNINGS PERSPECTIVE. WE THINK IT IS IMPORTANT TO BE DIVERSIFIED. SOME OF THE OTHER SECTORS WE HAVE SEEN CLIENTS SPEND TIME ON ONE IS HEALTHCARE WHICH IS A DIRECT BENEFICIARY OF SOME OF THE SEGMENTS, YOU KNOW, THROUGH AI THAT ARE DRIVING COSTS DOWN AND CREATING INCREASING EFFICIENCY FROM A DATA PERSPECTIVE AND ALSO ON THE BANK STOCKS JUST AS A WAY TO PLAY THE CAPITAL MARKET CYCLE. [00:07:05] Katie Griefeld: WELL, LET'S TALK A LITTLE BIT ABOUT PUBLIC VERSUS PRIVATE RIGHT NOW BECAUSE AS ROMAINE ALLUDED TO YOU WORK HEAVILY WITH FAMILY OFFICES. I WONDER WHAT THE MOOD MUSIC IS, WHAT THE APPETITE LOOKS LIKE WHEN YOU THINK ABOUT WHAT WE ARE SEEING IN PUBLIC EQUITY MARKETS VERSUS THE PRIVATE MARKETS AND THE FACT THAT SOME OF THE MOST EXCITING PRIVATE COMPANIES ARE STARTING TO COME PUBLIC. HOW IS THAT CHANGING YOUR CONVERSATIONS RIGHT NOW? [00:07:30] Anushka Gupta: IT IS A GREAT QUESTION AND WE HOSTED OUR ANNUAL GLOBAL FAMILY OFFICE SYMPOSIUM LAST WEEK. WE CONVENED 200 FAMILY OFFICES FROM 19 DIFFERENT COUNTRIES AROUND THE WORLD. AI WAS REALLY A PERVASIVE THEME IN THAT DISCUSSION. WE SURVEYED CLIENTS WHO ATTENDED AND OVER 80% OF THEM SAID THEY ARE ADDING EXPOSURE TO AI ACROSS THE PUBLIC MARKETS, PRIVATE MARKETS OR IN SPECIFIC SINGLE COMPANY EXPOSURE. WE HAVE A COMPANY EXPOSURE. WE HAVE A COMPANY EXPOSURE AND LEVERED TO THAT THEME. WE ALSO HEARD FROM CLIENTS THAT LATE STAGE EXPOSURE, WHETHER IT IS VENTURE OR GROWTH RELATED, REMAINS A DOMINANT THEME. THAT IS LARGELY BECAUSE THE SCALE AND VELOCITY OF INNOVATION AND WHAT THAT IS TRANSLATING TO IN TERMS OF REVENUE GROWTH IN THE PRIVATE ECOSYSTEM IS QUITE SIGNIFICANT. BUT HOLISTICALLY, FAMILY OFFICES ARE MORE OVERWEIGHT ALTERNATIVE ASSETS THAN A TYPICAL HIGH NETWORTH CLIENT. WE ARE SEEING U.S. ASSETS OR MORE EXPOSURE OVERSEAS? [00:08:25] Romaine Bostick: WE ARE DEFINITELY SEEING U.S. OVERWEIGHT ACROSS BOTH THE [00:08:29] Anushka Gupta: PRIVATE MARKETS AND THE PUBLIC MARKETS. THE FOCUS REMAINS FROM OUR PERSPECTIVE ON CONSTRUCTING GLOBALLY DIVERSIFIED PORTFOLIOS. BUT WITH A U.S. PREEMINENCE VIEW AND GIVEN WHAT WE HAVE SEEN IN THE SEMICONDUCTOR STOCKS AND THE OPPORTUNITIES IN EMERGING MARKETS IN PARTICULAR, WE HAVE FAVORED EXPOSURE TO SOME EMERGING MARKETS FUNDED OUT OF DEVELOPED INTERNATIONAL MARKETS. [00:08:54] Romaine Bostick: THANKS SO MUCH. THANK YOU SO MUCH. KICKING US OFF TO THE CLOSE ON THIS WEDNESDAY AFTERNOON. THANKS SO MUCH. [00:09:16] Katie Griefeld: IT MIGHT SUGGEST HE HAS SOME WIGGLE ROOM TO MOVE RATES LOWER. FROM HOT INFLATION TO AN EVEN HOTTER IPO PIPELINE, LOOK AT WHAT TO EXPECT FROM THE LONG ANTICIPATED SPACEX IPO AND HOW WILL SHAPE THE ENTIRE IPO AND M&A MARKET WITH EDDIE BEST. [00:09:31] Romaine Bostick: HE IS THE CO-CHAIR OF THE CAPITAL MARKETS PRACTICE. THAT'S THE NEXT BEST THING, THE CEO OF GLOBAL CITIZEN, THE COMPANY PRODUCING THE FIRST EVER FIFA HALFTIME SHOW. A LOT TO TALK ABOUT HERE ON "THE CLOSE." STICK WITH US. WE'LL BE BACK IN A MOMENT. THIS IS BLOOMBERG. [00:09:53] Katie Griefeld: OIL PRICES SLIGHTLY RISING HERE, HIGHER BY ABOUT 2% AS PRESIDENT DONALD TRUMP ESCALATES HIS THREATS TOWARD IRAN, SAYING THAT HE WILL, QUOTE, HIT IRAN HARD AFTER POSTING ON "X" ABOUT DELAYED PEACE TALKS. JOINING US LIVE TO DISCUSS IS RETIRED U.S. ARMY BRIGGADER GENERAL MARK KIMMETT, ALSO THE FORMER ASSISTANT SECRETARY OF STATE FOR POLITICAL MILITARY AFFAIRS. HE ALSO SERVED AS DEPUTY ASSISTANT SECRETARY OF DEFENSE FOR MIDDLE EAST AFFAIRS. SO QUITE A TENURE THERE. GENERAL, PLEASED TO HAVE YOU WITH US. LET'S TALK A LITTLE BIT ABOUT THE CHANGE IN TONE THAT WE'VE SEEN FROM THE PRESIDENT OF THE UNITED STATES JUST OVER THE PAST 24 TO 48 HOURS, BRINGING US TO TODAY, OF COURSE, WITH, AGAIN, THAT THREAT THAT I READ OUT THAT, YOU KNOW, THE PRESIDENT VOWING TO HIT IRAN HARD. I WONDER WHAT YOU MAKE OF THAT CHANGE IN POSTURE, BECAUSE UP UNTIL THIS POINT, UP UNTIL, YOU KNOW, THIS WEEK, REALLY, WE HAD BEEN MOSTLY TALKING ABOUT THE CEASE-FIRE AND THE POSSIBILITY OF EXTENDING IT. [00:10:53] Speaker 6: YEAH, I THINK THE JOKE GOING AROUND WASHINGTON, D.C. IS WE'VE BEEN ENCOUNTERING A PEACE-FIRE. BUT, LOOK, THE FACT REMAINS IS I THINK THE PRESIDENT HAS FOUND OUT, AS HE CONTINUES TO SAY TWO OR THREE DAYS AWAY FROM AN AGREEMENT, HE'S PROBABLY FOUND OUT THAT THE IRANIANS ARE BACKING OFF OR ARE UN SERIOUS ABOUT TRULY GETTING BACK TO NEGOTIATIONS. AND IT DOESN'T SURPRISE ME AT ALL, BECAUSE I'VE NEVER REALLY FELT THAT THE IRANIANS WERE SERIOUS ABOUT REDUCING OR ELIMINATING THEIR NUCLEAR PROGRAM. [00:11:26] Katie Griefeld: AND I DO WONDER, YOU KNOW, WHAT YOU MAKE OF WHAT HAS BEEN A BIG POINT OF LEVERAGE WHEN IT COMES TO THE IRANIANS, AND THAT IS THE STRAIGHT OF HORMOUZ, BECAUSE WE ALSO HEARD FROM PRESIDENT TRUMP TODAY POSTING THAT THE U.S. MILITARY HAS SUPPORTED THE PASSAGE OF MORE THAN 200 COMMERCIAL SHIPS THROUGH THE KEY WATERWAY, RESULTING IN MORE THAN 100 MILLION BARRELS OF OIL MAKING IT TO MARKET. AND CERTAINLY WE'VE BEEN TRACKING THE MOVEMENT IN OIL. WE'RE STILL BELOW $100 PER BARREL ON BRENT. AND, YOU KNOW, IF WE ARE ACTUALLY SEEING FLOWS MOVE THROUGH THE STRAIGHT, I MEAN, WHERE DOES THAT LEAVE IRAN IN TERMS OF HAVING ANY LEVERAGE? [00:12:03] Speaker 6: WELL, I THINK WE REALLY NEED TO UNDERSTAND ON THESE SEPARATE ISSUES. IS THE STRAIGHT OF HORMOUZ A CORE ISSUE? IS LEBANON A CORE ISSUE? IS LEBANON A CORE ISSUE? OR, IN FACT, THESE DIVERSIONS? BECAUSE THE WAR WAS STARTED FOR THREE REASONS. BECAUSE OF THE IRANIAN NUCLEAR PROGRAM, THEIR MISSILE PROGRAM, AND THEIR PROXY PROGRAM. THEIR MISSILE PROGRAM, AND THEIR MISSILE PROGRAM, AND THEIR MISSILE PROGRAM, AND THEIR MISSILE PROGRAM. BUT, ONCE THE WAR STARTED, I THINK THE IRANIANS WERE QUITE CLEVER IN TURNING THE FOCUS ONTO THE STRAIGHT FORMOUZ. NOW, AS YOU SAY, THERE LOOKS TO BE SOME LEAKAGE THERE IN THE EYES OF THE IRANIANS. AND SO WHAT HAVE THEY DONE? THEY'VE NOW DIVERTED TO THE ISSUE OF LEBANON, TRYING TO COUPLE THE ISRAELI-LEBANON WAR WITH THE NEGOTIATIONS. SO, AGAIN, TO ME, I THINK WHAT WE'RE SEEING IS A REASON FOR THE IRANIANS TO NOT WANT A NUCLEAR PROGRAM. TO ME, THE RUSH -- THERE IS NO LOGICAL REASON FOR THE IRANIANS TO NOT WANT A NUCLEAR PROGRAM, EXCEPT TO RELIEVE THEMSELVES OF WAR AND SANCTIONS. BUT THEY'VE DEMONSTRATED THEY'RE PRETTY FLEXIBLE AND THEY'RE PRETTY DURABLE AS WELL. SO, I DON'T SEE THE STRAIGHT, NOR DO I SEE LEBANON AS CORE ISSUES, BUT I SEE THEM AS DIVERSIONS ON THE PART OF THE IRANIANS. [00:13:18] Romaine Bostick: AND WE'VE ALREADY HEARD EARLIER TODAY FROM THE IRAN FOREIGN MINISTRY CLAIMING THAT BASICALLY A LOT TO GO ON. WE'VE BEEN TALKING ABOUT THE IRANIANS. YOU'VE BEEN TALKING ABOUT THE IRANIANS. WE'VE BEEN TALKING ABOUT THE IRANIANS. WE'VE BEEN TALKING ABOUT THE IRANIANS FROM THE ISRAELI DEFENSE MINISTERS SAYING THAT THE WAR IS FAR FROM OVER. I DO WANT TO BRING YOUR ATTENTION TO SOME COMMENTS THAT NIKKI HALEY MADE ON BLOOMBERG EARLIER TODAY, THE FORMER U.N AMBASSADOR. BASICALLY IN HER VIEW THAT SHE SAYS THAT IRAN NEVER REALLY WANTED ANY SORT OF A DEAL. WE'VE BEEN TALKING ABOUT THE IRANIANS. WE'VE BEEN TALKING ABOUT THEIR WORDS. I AM CURIOUS AS TO WHAT FINISHING THE WAR WOULD EVEN LOOK [00:13:50] Speaker 6: LIKE GIVEN WHAT WE KNOW ABOUT THE LANDSCAPE OF THE IRANIANS REGIME. I DON'T AGREE ON THE SECOND POINT. IT NEEDS TO BE MORE THAN MILITARY. MILITARY SUCCESS ALONE, HOWEVER WE DESCRIBE IT, WILL NOT LEAD TO STRATEGIC SUCCESS. WE ARE TRYING TO USE ALL ELEMENTS OF NATIONAL POWER, DIPLOMACY, INFORMATION, ECONOMICS, AND MILITARY POWER. BUT AS WE FOUND OUT, IRAN IS A TOUGH NUT TO CRACK. I DON'T THINK MILITARY SUCCESS WILL BE TANDEMOUNT TO VICTORY UNLESS WE GO SIGNIFICANTLY MORE IN HIGHER PRESSURE AND POSSIBLY GOING AFTER INFRASTRUCTURE TARGETS THAT WE OTHERWISE WOULD NOT GO FOR, CIVILIANS IN PARTICULAR. [00:14:37] Romaine Bostick: GIVE US A SENSE HERE, FOR A LATE PERSON, WHEN WE START TO TALK ABOUT WHAT THE MILITARY'S ROLE IN ALL THIS, WHEN WE'VE BEEN IN THE CONFLICTS IN THE PAST, PARTICULARLY IN SOME OF THE CAMPAIGNS THAT YOU'VE BEEN INVOLVED WITH OR BEEN ADVISING ON. WHAT WAS SORT OF THE SYMBiosis BETWEEN THE MILITARY LEADERS AND, LET'S JUST SAY, THE DIPLOMATS, AND THAT SIDE OF THE ADMINISTRATION? DID THEY WORK CLOSELY TOGETHER TOWARDS WHATEVER THE END GOAL WAS? [00:15:02] Speaker 6: WELL, IT CERTAINLY WAS THE CASE IN IRAQ AND AFGHANISTAN THAT WE HAD VERY, VERY LARGE STATE DEPARTMENT ELEMENTS WORKING SIDE BY SIDE WITH THE MILITARY FORCES. I THINK IN IRAQ AND AFGHANISTAN, THAT REALLY BROUGHT AROUND THIS NOTION OF HAVING STATE DEPARTMENT MILITARY INTEGRATED ALL THE WAY DOWN INTO -- WE HAD PROVINCIAL RECONSTRUCTION TEAMS IN IRAQ THAT HAD A MILITARY LEADER ALONGSIDE A STATE DEPARTMENT LEADER. SO THAT'S IMPORTANT, BUT AS WE'VE SEEN IN THESE REALLY TOUGH CASES LIKE IRAN AND UNFORTUNATELY AFGHANISTAN, THAT'S NOT ENOUGH TO BRING ABOUT BEHAVIOR CHANGE ON THE PART OF THE ENEMY. THAT'S REALLY WHAT THIS IS ALL ABOUT. WHAT DO WE HAVE TO DO TO CHANGE THE THINKING AND THE BEHAVIOR, IN THIS CASE OF THE IRANIAN REGIME? [00:15:54] Romaine Bostick: ALL RIGHT, GENERAL, REALLY APPRECIATE YOU TAKING TIME FOR US. AS ALWAYS, RETIRED U.S. ARMY BRICARD GENERAL MARK KIMMETT. WE COUNT YOU DOWN TO THE CLOSING BELLS. WE ARE GOING TO TURN BACK TO THE MARKETS THEMSELVES. THEY ARE DOWN ON THE DAY. THIS AFTER A GAUGE OF CONSUMER PRESSURES CONTINUED TO RISE. WE ARE GOING TO GET A READ HERE ON WHAT'S BEEN ACTUALLY GOING ON IN THE RETAIL SEGMENT. WE ARE GOING TO CATCH UP WITH DANA TELSEY OVER AT TELSEY [00:16:21] Speaker ?: ADVISORY GROUP WHEN WE COME BACK AFTER THE BREAK. [00:16:23] Romaine Bostick: LET'S GET RIGHT TO OUR TOP CALLS. BIG MOVERS ON THE BACK OF ANALYST RECOMMENDATIONS. WE START OFF WITH ALUMINA. JP MORGAN UPGRADING THE GENE SEQUENCING STOCK TO OVERWEIGHT. THE PRICE TARGET GOES TO A STREET HIGH, 185. JP MORGAN SAYING IT IS MORE COMFORTABLE WITH THE COMPANY'S CUSTOMER STICKINESS. INITIATING COVERAGE WITH AN OUTPERFORM AS PART OF A BROADER CALL ON 11 MULTI-INDUSTRIALS. INVENT IS A DATA CENTER POWER AND COOLING FIRM. THAT PRICE TARGET IS GETTING SET AT 218, WHICH IS BASICALLY A STREET HIGH. THE ANALYST CITING THE COMPANY'S TECHNICAL MOAT. NEVERTHELESS, THE SHARE IS DOWN FOR A SECOND DAY. FINALLY, LET'S TALK ABOUT NIKE. THE PRICE TARGET GOES ALL THE WAY DOWN TO 50 FROM 70. THE FIRM CITING A SLOWER THAN EXPECTED TURNAROUND UNDER CEO ELLIOTT HILL AND LUKEWARM CUSTOMER RECEPTION TO SOME OF ITS NEW PRODUCTS. THOSE SHARES DOWN 1% ON THE DAY AND ABOUT 44% FROM ITS 52-WEEK HIGH. WE DO WANT TO SAY IN THE RETAIL SPACE RIGHT NOW ON THE BACK OF THE HOTTEST INFLATION PRINT IN ABOUT THREE YEARS. WHETHER THAT IS PUTTING PRESSURE ON AMERICANS PAYCHECKS AND MORE IMPORTANTLY, THEIR WILLINGNESS TO SPEND. THANKS FOR JOINING US. THANKS FOR JOINING US. THANKS FOR JOINING US. CHIEF RESEARCH OFFICER AT TELSEY ADVISORY GROUP. BEFORE WE TALK ABOUT TODAY'S CPI PRINT, I WANT TO GO BACK IN TIME AND LOOK AT THE LAST QUARTER. A LOT OF PEOPLE THOUGHT WE WERE GOING TO SEE SOME BAD EARNINGS OUT OF THE RETAIL AND APPAREL COMPANIES, PRIMARILY BECAUSE OF THE ELEVATION IN GAS PRICES. MOST OF THE COMPANIES SEEM TO DEFY THAT. ONE PARTICULAR STOOD OUT TO ME AND THAT WAS RALPH LORAN. I KNOW THAT IS A HIGHER END CONSUMER. THAT IS A HUGE END CONSUMER. [00:18:02] Speaker 1: THIS IS A HUGE END CONSUMER. THIS IS A HUGE END CONSUMER. IT IS INCREDIBLY BULLISH ABOUT THE REST OF THE YEAR. EXACTLY. THANK YOU FOR HAVING ME. ONE OF THE THINGS YOU SEE WITH RALPH LORAN IS THEY ARE HAVING A WIDER APPEAL, BOTH YOUNGER CONSUMERS AND OLDER CONSUMERS. IT IS A HUGE END CONSUMER. IT IS A HUGE END CONSUMER. IT IS A HUGE END CONSUMER. IT IS A HUGE END CONSUMER. THE REACH IS MUCH BROADER. WITH THAT, THE QUALITY OF THE PRODUCTS IMPROVED. THE STORES HAVE IMPROVED. [00:18:30] Romaine Bostick: THEY ARE GETTING TRAFFIC. YOU HAVE GLOBAL IMPROVEMENT WITH RALPH ALSO. IT IS A HUGE END CONSUMER OF RALPH ALSO. [00:18:36] Speaker 1: IT IS A HUGE END CONSUMER OF RALPH ALSO. IT IS A HUGE END CONSUMER TO SURPRISE A LOT OF FOLKS TO THE UPSIDE. THE NUMBER 17% WAS THE COMP FOR RALPH. 17% WAS THE COMP STORE SALES INCREASE FOR RALPH STORES. WITH THE TRANSFORMATION OF INCREASED MARKETING, IMPROVING THEIR STORES, I THINK NOW YOU ARE GOING TO SEE MORE RALPH STORES [00:18:56] Katie Griefeld: ON THE EAST COAST ALSO. THERE REALLY IS A LONG RUNWAY FOR RALPH TO CONTINUE TO SHOW CONTINUED GROWTH. I THINK YOU ARE SEEING THAT THE BRANDS AVAILABLE IN THESE OFF PRICES, WHETHER IT IS IN HOME CATEGORIES, WHETHER IT IS IN APPAREL CATEGORIES, IT IS A WIDE ASSORTMENT OF GOOD PRICES. WHAT THERE IS TO EXTRAPOLATE ABOUT THE BROADER ECONOMY. [00:19:14] Speaker 1: THAT IS WHAT WE DO HERE ON BLOOMBERG TELEVISION. ARE WE SEEING ANYTHING SPECIFIC THAT SUGGESTS TO YOU THAT THERE IS A TRADE DOWN GOING ON RIGHT NOW? I THINK YOU ARE SEEING THAT. LOOK AT THE BRANDS AVAILABLE IN ROSS, TJX OR BURLINGTON. YOU ARE GETTING BETTER BRANDS. YOU ARE SEEING A TRADE DOWN. IT IS A WIDE ASSORTMENT OF GOODS THAT IS AVAILABLE THERE AND THEY ARE GETTING TRAFFIC. IT DOESN'T HURT THAT THEY ARE EACH OPENING A LOT OF STORES SO YOU CAN FIND THEM IN MORE LOCATIONS. [00:19:39] Katie Griefeld: WHAT DOES THAT MEAN FOR THE BRANDS, THE STORES THAT ARE BEING TRADED DOWN FROM? ARE YOU SEEING THEM OFFER DISCOUNTS IN RESPONSE? WHAT DOES THAT FIGHT BACK LOOK LIKE? [00:19:50] Speaker 1: ONE OF THE THINGS YOU ARE SEEING IS MORE NEWNESS AND INNOVATION IS DRIVING FULL PRICE SALES. SO SOME OF THESE BRANDS, IF THEY ARE OFFERING NEW THINGS, INNOVATIVE THINGS THAT YOU HAVEN'T SEEN BEFORE, IT IS ALSO HELPING THEIR STORES. AND YOU ARE SEEING THAT, FOR EXAMPLE, LIKE IN A VICTORIA'S SECRET, WHERE YOU HAVE SEEN LOW DOUBLE DIGIT INCREASES IN SOME OF THEIR CORE CATEGORIES. AND YOU HAVEN'T SEEN LOW DOUBLE DIGIT INCREASES FROM THEM. SO THE FOCUS ON NEW, THE FOCUS ON INNOVATION IS DRIVING NEWER CUSTOMERS. YET THE FOCUS ON VALUE REMAINS VERY RELEVANT FOR OFF-PRICERS. AND YOU ARE GETTING THAT CUSTOMER, TOO. FOR THE WHOLE, EVEN IN THE FACE OF THE MIDDLE EAST CONFLICT, RISING GAS PRICES, INFLATIONARY HEADWINDS, THE CONSUMER STILL IS SPENDING. LET'S NOT FORGET COMING UP, WHETHER IT IS THE BASKETBALL GAME TONIGHT WITH THE NBA FINALS, WHETHER IT IS THE BASKETBALL AMERICA'S 250 IN NEW YORK CITY, WE WILL HAVE FIREWORKS FROM MACEYS ON BOTH THE WEST SIDE AND THE EAST SIDE. WHETHER IT IS THE WORLD CUP, YOU ARE GIVING CONSUMERS EXPERIENCES AND WHEN THEY HAVE EXPERIENCES, THEY TYPICALLY BUY THINGS. THAT IS HELPING. [00:20:51] Romaine Bostick: I AM CURIOUS, DO YOU NOT WORRY AT ALL? I KNOW THAT WE TALK ABOUT THIS TRANSITORY NATURE OF THESE INCREASING GAS PRICES, BUT IT HAS BEEN PERSISTENT AND BASED ON WHATEVER HEADLINES WE GOT TODAY, IT IS LIKELY TO BE PERSISTENT FOR SOME TIME. DOES THAT FACTOR INTO YOUR OUTLOOK FOR THE REST OF THE YEAR? DO YOU ANTICIPATE WE COULD SEE A PULLBACK IN SOME OF THE [00:21:11] Speaker 1: DISCRETIONARY SPEND? WE WATCH IT VERY CAREFULLY. KEEP IN MIND THAT ONE OF THE THINGS WE WONDER ABOUT IS EVERYONE BENEFITED OR A LOT OF PEOPLE BENEFITED FROM TAX REFUNDS. AS THOSE ROLL OFF, ARE WE GOING TO SEE SLOWING SALES? YET DATA POINTS THAT WE ARE GETTING, WE ARE CONTINUING TO HERE ON A WEEKLY BASIS. WE ARE HOLDING UP. WE ARE SEEING MORE INCREASED ORDER TRENDS. IN THE BACK HALF OF THE YEAR, PUBLIC COMPANIES HAVE THE BENEFIT, AND WE DON'T KNOW WHEN, WHAT TARIFT REFUNDS BEING FUNDS FOR THE YEAR, AND POTENTIALLY THE BENEFIT OF TARIF FREE FUNDS, FOR THE FIRST TIME IN A LONG TIME, WE COULD SEE DISCRETIONARY PERFORM WELL IN THE BACK HALF OF 2026. ALL RIGHT. [00:21:49] Katie Griefeld: WE ARE GOING TO HOLD YOU TO THAT AND HAVE YOU BACK, DANA. FINGERS CROSSED. ARE WE GOING TO SEE YOU COURTSIDE TONIGHT? [00:21:54] Romaine Bostick: NO. WHAT ABOUT YOU? [00:21:58] Katie Griefeld: APPARENTLY TAYLOR SWIFT IS GOING TO BE THERE. I WILL NOT, THOUGH. WE WILL BE WATCHING. THERE YOU GO. DANA, ALWAYS GREAT TO SEE YOU, ESPECIALLY IN STUDIO. THAT IS DANA TELSEY. SHE IS THE CEO AND CHIEF RESEARCH OFFICER OVER AT THE TELSEY ADVISORY GROUP. COMING UP, FORMER FED GOVERNOR BETSY DUKE JOINS US LIVE TO REACT TO THAT HOT INFLATION PRINT AND TELL US HOW THE CENTRAL BANK COULD RESPOND IN ITS NEW ERA UNDER KEVIN MORSCH. WHEN WE RETURN, THIS IS THE CLOSE ON BLOOMBERG. [00:22:34] Romaine Bostick: COMING UP, THIS IS THE COUNTDOWN TO THE CLOSE. [00:22:37] Katie Griefeld: I AM ROMANE BOSTICK. KEEPING AN EYE ON THESE EQUITY MARKETS, OF COURSE, ROMANE WATCHING A DEEPENING SLUMP WHEN IT COMES TO MARKETS OVERALL, BUT ESPECIALLY IN THOSE BIG TECH NAMES. ABSOLUTELY. [00:22:47] Romaine Bostick: NOW, HITTING SESSION LOWS FOR MOST OF THE MAJOR INDICES. AND JUST A REMINDER FOR OUR AUDIENCE, WE ARE GOING TO GET ANOTHER TEST OF THAT TECH TRADE AFTER THE BELL WHEN WE GET EARNINGS REPORT OUT OF ORACLE AFTER THE BELL. BUT, OF COURSE, A LOT OF THE SOFTNESS THAT WE ARE SEEING IN THE MARKET TODAY, PARTLY BECAUSE OF THE INCREASED RHETORIC FROM THE WHITE HOUSE TOWARDS IRAN, BUT ALSO THAT CPI REPORT THAT WE GOT THIS MORNING, WHICH CERTAINLY IN LINE WITH EXPECTATIONS, BUT THOSE EXPECTATIONS WERE RELATIVELY [00:23:09] Katie Griefeld: DOWER. YEAH, ABSOLUTELY. COMING IN ON THE SCREWS, BUT AGAIN, YOU COMPARE THAT TO RECENT HISTORY, AND CERTAINLY PAINTS A PICTURE OF INFLATIONARY PRESSURES REASTIRTING THEMSELVES IN THIS ECONOMY. LET'S GET TO IT WITH FORMER FED GOVERNOR BETSY DUKE, ALSO THE FORMER CHAIR OF WELLS FARGO. BETSY, FANTASTIC TO HAVE YOU WITH US AS ALWAYS. AS WE WERE DISCUSSING, YOU THINK ABOUT THE FIGURES WE GOT ON THE FED GOVERNOR. THANK YOU VERY MUCH AS EXPECTED HERE. HOW DOES THIS CHANGE THE NEEDLE, MOVE THE NEEDLE, IF AT ALL, WHEN IT COMES TO THE DEBATE OVER WHAT THE FEDERAL RESERVE IS GOING TO DO WHEN IT COMES TO ITS INTEREST RATE TRAJECTORY, AND WHAT WE HEAR FROM KEVIN WARSH, THE NEW FED [00:23:55] Speaker 7: CHAIR, IN ABOUT SEVEN DAYS' TIME? FOR THE COMMITTEE OVERALL, I'M NOT SURE IT CHANGES ANYBODY'S MIND AS FAR AS SOMETHING TO DO IMMEDIATELY. BUT IT'S STILL DISTURBING. AND YOU KNOW, THE ECONOMIST CAN PARSE INFLATION READINGS AND TALK ABOUT THIS AND TRIM MEAN AND ALL OF THE DIFFERENT MEASUREMENTS OF INFLATION AND WHAT'S GOING. BUT FOR EVERYDAY CONSUMERS, THAT DOESN'T MATTER. THE THINGS YOU HAVE TO BUY ARE GETTING MORE AND MORE EXPENSIVE. AND NOW FOR THE LAST TWO MONTHS, THE EXPENSES ARE OUTWEIGHING PAYCHECKS. AND THAT'S WHERE THE REAL DANGER IS. YEAH. [00:24:30] Katie Griefeld: AND I WANT TO CONTINUE DOWN THAT PATH. BECAUSE, AGAIN, YOU THINK ABOUT WHAT WE SAW ON HEADLINE INFLATION. IT WAS REALLY DRIVEN BY HIGHER GASOLINE AND ENERGY PRICES. OF COURSE, YOU WOULDN'T SEE THAT IN CORE. BUT YOU MAKE THE GOOD POINT THAT IT STILL AFFECTS HUMAN PSYCHOLOGY WHEN YOU'RE PAYING MORE FOR THOSE HIGHER ENERGY PRICES. HOW DOES THAT TYPICALLY TRANSLATE THROUGH INTO HOW CONSUMERS SPEND THEIR MONEY? BECAUSE SENTIMENT HAS BEEN PRETTY LOW FOR A WHILE HERE. BUT WE HAVEN'T NECESSARILY SEEN THAT DIRECT LINE YET. [00:25:00] Speaker 7: SO IT'S NOT JUST HOW THEY SPEND THEIR MONEY. A LOT OF THE ISSUES COME WITH WHAT DO THEY DO IN TERMS OF EXPECTATIONS, WHAT DEMANDS DO THEY MAKE IN TERMS OF WAGES. SO THE MOST IMPORTANT THING TO CONTROL INFLATION IS THE CREDIBILITY. CREDIBILITY THAT THE FED CAN CONTROL INFLATION OR CREDIBILITY THAT THE GOVERNMENT CAN SOMEHOW CONTROL INFLATION. AND ONCE THAT CREDIBILITY IS LOST, THEN EVERYDAY CONSUMERS ARE JUST SCRAMBLING TO MAKE ENOUGH MONEY TO BE ABLE TO PAY FOR THINGS THAT THEY'RE QUITE CERTAIN ARE GOING TO COST MORE AND MORE IN THE FUTURE. [00:25:37] Romaine Bostick: THEY'RE GOING TO BE ABLE TO PUT INFLATION. THEY'RE GOING TO BE ABLE TO PUT INFLATION. THIS RAISES THE QUESTION, AND IT MIGHT BE A DUMB QUESTION. I THINK I KNOW THE ANSWER, BUT WHO IS KEVIN WASH SPEAKING TO WHEN HE TAKES THAT PODIUM? IS IT THE MARKETS, WHICH I PRESUME IT PROBABLY IS, OR IS GOING TO BE ABLE TO BE ABLE TO BE ABLE TO PUT INFLATION? WELL, I THINK THAT IS A LOT OF UPSIDE, POTENTIALLY, FOR WHAT WOULD LEAD TO RATE CUTS. BUT THEN AGAIN, THE ANECDOTAL EVIDENCE ON THE GROUND, WHEN YOU TALK ABOUT FALLING SAVING RATES, RISING DEBT LEVELS, COLLAPSING CONSUMER CONFIDENCE SHOWS THAT PEOPLE ON THE [00:26:09] Speaker 7: GROUND ARE STRUGGLING. WHEN THE CHAIRMAN TAKES THE PODIUM, HE IS SPEAKING TO MARKETS, TO INVESTORS, TO CONSUMERS, TO THE PUBLIC AT LARGE. BUT FOR KEVIN, THIS IS GOING TO BE HIS VERY FIRST STATEMENT TO ALL OF THOSE PUBLICS. AND SO I WOULD LOOK FOR HIM TO SORT OF SET THE STAGE FOR HOW HE THINKS IN THE FUTURE. AND I DON'T THINK YOU WILL SEE IT AS SPECIFIC AS, YOU KNOW, THIS IS HOW I WOULD REACT TO THAT, AND A VERY SPECIFIC REACTION FUNCTION. BUT I THINK OVERALL, KEVIN IS GOING TO REMAIN A HAWK. KEVIN IS GOING TO BE CONCERNED ABOUT INFLATION, CONCERNED ABOUT GETTING INFLATION UNDER CONTROL. BUT HE'S GOING TO TACKLE IT PERHAPS IN A DIFFERENT WAY THAN PREVIOUS CHAIRMANS HAVE. [00:26:53] Romaine Bostick: WHEN WE TALK ABOUT THE REPORT THAT WE GOT TODAY, AND PARTICULARLY SOME OF THE DISINFLATIONARY COMPONENTS THAT WE SAW TODAY, I THINK IT WAS CARS, HOUSEHOLD FURNISHINGS. IT SEEMS LIKE SOME OF THE INTERPRETATION, AT LEAST BY BLOOMBERG ECONOMISTS, IS THIS IDEA THAT THAT IS A REFLECTION THAT THE CONSUMER IS PULLING BACK ON THAT RATHER THAN THIS BEING SOME SORT OF STRUCTURAL SHIFT DOWN IN THOSE PRICES? [00:27:16] Speaker 7: WELL, I THINK WE'VE HAD SO MANY ONE-OFF ISSUES. SO, YOU GO ALL THE WAY BACK, THERE WERE THE SUPPLY SHOCKS OF THE ECONOMY REOPENING AFTER COVID, THEN YOU HAD TARIFFS, THEN YOU HAD THE WAR, YOU HAD GAS PRICES, AND IT'S VERY HARD TO KNOW HOW ALL OF THESE ARE FEEDING THROUGH. IT'S JUST -- BUT IT'S VERY IMPORTANT THAT PRICES HAVE NOW BEEN BELOW THE FED'S TARGET FOR FIVE YEARS, POSSIBLY EVEN MORE BY NOW. WHEN I WAS AT THE FED FOR FIVE YEARS, AND IN THAT TIME, WE COULD NEVER GET INFLATION UP ABOVE 1%. SO, YOU HAVE TO BEGIN TO QUESTION WHETHER THE FED HAS THE WILL TO CONTROL INFLATION OR THE ABILITY. [00:27:54] Katie Griefeld: YEAH, THE ABILITY IS CERTAINLY AN URGENT QUESTION HERE. AND, YOU KNOW, I WAS READING SOME REACTION FROM OUR COLLEAGUES OVER AT BLOOMBERG ECONOMICS, AND THEY DO THINK THAT THERE COULD BE THIS SORT OF SELF-CORRECTING MECHANISM WHEN IT COMES TO INFLATION, SORT OF WHAT WE WERE TALKING ABOUT WITH CONSUMER PSYCHOLOGY, THAT, YOU KNOW, IF WE SEE THE COST OF LIVING RISE TO A CERTAIN POINT, THAT'S GOING TO BRING DOWN DISCRETIONARY SPENDING, SPENDING IN OTHER PARTS OF THE ECONOMY AND EVENTUALLY LOWER PRICES. AND, YOU KNOW, I WONDER IF THAT'S A THEORY THAT YOU AGREE WITH AND, YOU KNOW, HOW MUCH WATER YOU WOULD PUT IN IT AT [00:28:31] Speaker 7: THIS MOMENT? SO, THERE IS SOME TRUTH TO THAT. THE PART I'M NOT SURE OF IS WHEN YOU GET THIS K-SHAPED ECONOMY OR THE DIFFERENCE BETWEEN CONSUMERS WHO ARE STRUGGLING DAY-TO-DAY AND PARTICULARLY INVESTORS WHO ARE SEEING TREMENDOUS GAINS IN THE MARKET. AND SO, THEY'RE THE ONES DOING MOST OF THE SPENDING NOW. SO, HOW DOES THEIR SPENDING ADJUST VERSUS THOSE WHO CAN BARELY PAY FOR THE THINGS THAT ARE NON-DISCRETIONARY? [00:28:57] Romaine Bostick: WHEN WE TALK ABOUT, I GUESS, HOW YOU RIGHT THIS SHIP, THERE HAS BEEN SOME DISCUSSION THAT A MONETARY POLICY ALONE, OR AT LEAST THE INTEREST RATE FUNCTION OF MONETARY POLICY ALONE, WON'T BE ENOUGH TO REALLY TURN THAT TIDE. HOW MUCH POWER DOES A SHIFT IN INTEREST RATES, EITHER UP OR DOWN AT THIS STAGE, ACTUALLY HAVE? [00:29:14] Speaker 7: I'M NOT SURE IT'S GOING TO HAVE A BIG DIFFERENCE, WHETHER IT GOES A QUARTER POINT UP OR A QUARTER POINT DOWN. I'M NOT SURE THAT'S GOING TO MAKE A BIG DIFFERENCE. WHICH IS WHY I THINK THE FED IS PERFECTLY RIGHT TO HOLD STEADY UNTIL THEY BEGIN TO SEE ARE SOME OF THESE ISSUES GOING TO PLAY THEMSELVES OUT AND BEGIN TO RETURN TO THE NORM. OR IS THERE SOME SOMETHING THAT'S RUNNING AWAY FROM THEM? SO I THINK WAITING UNTIL THEY ESTABLISH A DIRECTION IS REALLY THE THING TO DO. [00:29:43] Katie Griefeld: AND IT SEEMS LIKE IN THE MARKETS WHAT'S BEING PRICED IN OUTSIDE OF WHAT WE'RE SEEING IN AI, OF COURSE, THAT'S ITS OWN SPECIAL SITUATION, IS A QUICK END TO THE CONFLICT. SOME SORT OF RESOLUTION THAT'S TANGIBLY IN THE OFFING. THAT'S EXPLAINED WHAT WE'RE SEEING WHEN IT COMES TO BREATH IN THE EQUITY MARKET, WHAT WE'RE SEEING, THE SORT OF NONREACTION THAT WE'VE SEEN IN THE ENERGY MARKETS. BUT, BETSY, I DO WONDER HOW MUCH DAMAGE HAS BEEN DONE. WHEN YOU THINK ABOUT WHAT WE'VE BEEN SEEING IN THE RISING PRICES OF ENERGY, OF FOODS, GROCERY BILLS, ET CETERA. I MEAN, EVEN IF WE SAW AN END TO THE CONFLICT IN SOMEWHAT SHORT ORDER, A REASONABLE MANNER, I MEAN, HOW MUCH OF WHAT WE'RE TALKING ABOUT THESE INFLATIONARY PRESSURES ARE BECOMING ENTRENCHED HERE? [00:30:27] Speaker 7: I THINK IF YOU SAW AN END TO THE CONFLICT, YOU WOULD DEFINITELY SEE SOME REDUCTION IN INFLATION. CERTAINLY, FUEL PRICES WOULD COME DOWN IN ANY WAY THAT THEY'RE FEEDING THROUGH TO OTHER INFLATION WOULD BEGIN TO COME DOWN. THAT'S THE CASE. THE OTHER ISSUE AT PLAY THAT I'M NOT SURE OF IS THE SIZE OF OUR FEDERAL DEBT. THE OTHER NEWS THAT DIDN'T GET A LOT OF PLAY TODAY IS THE FACT THAT SOCIAL SECURITY IS GOING TO RUN OUT OF MONEY A LITTLE BIT BEFORE THAN THEY ORIGINALLY THOUGHT. SO SENATORS RUNNING FOR THE SENATE RIGHT NOW WILL HAVE TO DEAL WITH THIS ISSUE OF WHAT TO DO ABOUT SOCIAL SECURITY IN THEIR SIX-YEAR TERM. [00:31:12] Romaine Bostick: THAT'S A VERY SHORT WINDOW AND THE HIGHER THE DEBT GETS, THE MORE THAT'S GOING TO PUSH RATES UP REGARDLESS OF WHAT THE FED DOES. ALWAYS APPRECIATE IT. FORMER FED GOVERNOR BETSY DUKE, A CLOSER LOOK AT THE ECONOMIC DATA WE GOT THIS MORNING AND THE PRELUDE TO A BIG FED DECISION AND MORE IMPORTANTLY A BIG FED PRESS CONFERENCE ONE WEEK FROM TODAY. MEANWHILE, WE TURN BACK TO MARKETS. THEY ARE DEEP IN THE RED, OFF THE LOWS OF THE DAY. THEY ARE GOING TO PUSH RATES AND PUSH RATES. WE ARE GOING TO PUSH RATES TO PUSH RATES. MOST OF THEM FALLING TODAY. THIS AFTER AN ANNOUNCEMENT OF SOME PRIME COMPETITION COMING FROM AMAZON. [00:31:44] Speaker ?: THAT'S COMING UP IN OUR STOCK OF THE HOUR, UP NEXT, RIGHT [00:31:47] Romaine Bostick: HERE ON BLOOMBERG. TIME NOW FOR OUR STOCK OF THE HOUR, TAKING A LOOK AT TRUCKING COMPANIES, PARTICULARLY THOSE IN THE LESS THAN TRUCK LOAD SPACE, ALL MOVING LOWER ON THE BACK OF NEWS THAT AMAZON IS EXPANDING INTO THAT SPACE. WE ARE GOING TO PUSH RATES. WE ARE GOING TO PUSH RATES. WE ARE GOING TO PUSH RATES. WE ARE GOING TO PUSH RATES. AMAZON ANNOUNCED A MONTH AGO THEY WERE CREATING THIS ARM OF THEIR LOGISTICS BUSINESSES, THE IDEA THAT THEY WOULD GO DEEPER INTO THIS MARKET. WE GOT THE NEWS TODAY THAT PUSH RATES. IT'S A LESS TRUCK, BUT THIS IS A BUSINESS THAT WAS LARGELY [00:32:29] Speaker 8: LEFT TO COMPANIES LIKE OLD DOMINION AND SIA AND EVEN TO A CERTAIN EXTENT, FEDEX. ABSOLUTELY. AS YOU MENTIONED, THIS IS A SPACE THAT HAS BEEN DOMINATED BY THE COMPANIES YOU CALLED OUT HERE. WHAT WE ARE LOOKING TO IS MORE OR LESS THE SCOPE, THE SCALE [00:32:45] Romaine Bostick: OF IT, THE FACT THAT IT IS NATIONWIDE. WE KNOW THAT -- [00:32:50] Speaker 8: WE ARE GOING TO BE EVERY SINGLE PLACE. THIS IS GIVING A BIT MORE OF A GRANULARITY SPECIFICITY TO THIS AND PEOPLE ARE REACTING AS TO WHETHER OR NOT AMAZON WILL [00:32:59] Katie Griefeld: BE ABLE TO DOMINATE THE SPACE LONG-TERM. THAT'S WHAT I'M WONDERING ABOUT. THE AMAZON EFFECT, NO MATTER WHAT INDUSTRY YOU ARE TALKING ABOUT, IS VERY REAL. WE ARE TALKING ABOUT INDUSTRY. WE ARE TALKING ABOUT THE EFFORT THEY ARE TAKING ON HERE. [00:33:16] Speaker 8: WHO ARE THEY CURRENTLY TRYING TO UNSEAT AND HOW DIFFICULT TRULY WOULD THAT BE? THIS IS PRETTY TOUGH. YOU NEED A NUMBER OF THINGS TO MAKE THIS HAPPEN. YOU NEED TERMINALS, COMPLEX ROUTING. YOU ALSO HAVE DENSE PICKUP LOCATIONS THAT YOU HAVE TO CONFIGURE. TO YOUR EARLIER POINT, WE HAVE SEEN AMAZON DOMINATE IN SO MANY DIFFERENT WAYS. WE HAVE SEEN A COMPANY THAT HAS BEEN ESSENTIALLY A RETAILER NOW MOVING INTO THE MORE LARGE LOGISTICS THAT WE ARE TALKING ABOUT. THE QUESTION HERE NOW IS WHETHER OR NOT THEY ARE ABLE TO UNSEAT SOME OF THESE NAMES LIKE OLD DOMINION AND FEDEX. IF THEY ARE ABLE TO FIGURE THIS OUT IN A MORE COMPLEX [00:33:53] Romaine Bostick: FASHION, IF THEY ARE ABLE TO SEE IF THEY CAN COME AND PLAY IN THE GAME HERE. IT'S A HARD BUSINESS TO NAVIGATE. I WONDER IF THERE IS AN IDEA THAT AMAZON MIGHT BE WILLING TO TAKE A LOSS ON THIS IN THE INTEREST OF GETTING ITS FOOT IN THERE AND CREATING WHATEVER MONOPOLISTIC STRONG HOLD IT CAN IN THE SAME WAY IT DID YEARS AGO WHEN IT CAME TO E-COMMERCE. [00:34:15] Speaker 8: THAT'S THE QUESTION. WE'VE SEEN THIS PLAYBOOK BEFORE. HOW ARE THEY GOING TO DO IT IN THIS SCENARIO? THAT'S WHAT YOU ARE SEEING ANALYSTS ON WALL STREET TRYING TO CONFIGURE IN THIS MOMENT AS TO WHETHER OR NOT THEY ARE SORT OF LOSS TO GET TO THE ULTIMATE GOAL HERE BUT IF THEY ARE ABLE TO ACTUALLY MAKE THE GOAL AND SEE IT THROUGH THEY WOULD BE PRETTY MUCH A STRONG COMPETITOR IN THIS MARKET THAT'S LARGELY BEEN DOMINATED BY NAMES LIKE FEDEX AND OLD DOMINION. [00:34:39] Romaine Bostick: WE'RE SURE AMAZON IS GOING TO USE TRUCKS. THEY'RE NOT GOING TO USE THOSE BICYCLES THAT YOU SEE ALL AROUND NEW YORK CITY. THOSE THINGS ARE A MENACE. [00:34:44] Katie Griefeld: ESPECIALLY WHEN YOU PUT ENGINES ON THEM. THEY ARE A REAL SAFETY LIABILITY. NORA, GREAT REPORTING AS ALWAYS. BLOOMBERG TV MARKETS CORRESPONDENT NORAH MELINDA. WHAT IF THEY STARTED THEIR OWN VERSION OF UBER AND YOU CAN RIDE IN THE BACK OF ONE OF THOSE THINGS? THAT MIGHT WORK FOR SOMEONE. WALK THROUGH THE CLOSING BELLS WITH ERICA LAO OF NORTH GROWTH MANAGEMENT NEXT. THIS IS THE CLOSE. [00:35:17] Anushka Gupta: WE ARE VERY CONSTRUCTIVE ON THE EARNINGS CYCLE. WE ARE VERY CONSTRUCTIVE ON THE EARNINGS CYCLE. WE SEE THAT PAYBACK FROM SOME OF THE CAPEX SPENDING STARTING TO FLOW THROUGH. IT IS SOMETHING WE ARE EXCITED ABOUT. I DO THINK THIS YEAR THE LEVEL OF [00:35:36] Romaine Bostick: GROWTH WE HAVE SEEN FROM AN EARNINGS PERSPECTIVE, ESPECIALLY GOVERNMENT ON THE EARNINGS PERSPECTIVE. [00:35:50] Katie Griefeld: WE ARE TALKING ABOUT CORPORATE FUNDAMENTALS. THE MARKET IS NOT JUST ABOUT FUNDAMENTALS, IT IS ALSO ABOUT SENTIMENT. WHAT IS INTERESTING ABOUT THIS SELL-OFF IS THAT IT IS PRETTY BROAD-BASED. YOU HAVE MORE LOSERS THAN GAINERS IN THE S&P 500 DOWN RIGHT NOW. MORE THAN 300 NAMES. WE HAVE A LOT OF BROAD-BASED SELLING HERE. [00:36:12] Romaine Bostick: A LOT OF BROAD-BASED SELLING. WE ARE GOING TO GET ORACAL EARNINGS AFTER THE BELL. THEY HAVE SORT OF BECOME IN ADDITION TO NVIDIA ONE OF THE MAIN PROXIES FOR THE AI INFRASTRUCTURE BUILDOUT. THAT STOCK HASN'T HIT A RECORD HIGH SINCE SEPTEMBER OF LAST YEAR. IT HAS BEEN UNDER PRESSURE A LOT DESPITE ALL THE TALK ABOUT IT AND PRETTY PHENOMENAL [00:36:34] Katie Griefeld: NUMBERS OVER THE LAST FEW QUARTERS. YOU CAN HAVE THAT CONVERSATION ABOUT A TON OF DIFFERENT NAMES THAT ARE IN THE CONVERSATION. IT WILL BE INTERESTING TO SEE WHAT ORACLE ACTUALLY DELIVERS HERE BECAUSE CERTAINLY SPECULATION IS HIGH. [00:36:50] Romaine Bostick: I'M BUILDING A DATA CENTER ON MY BALCONY. I'M NOT SURE THE CONDO BOARD APPROVES. WE WILL WORK THAT OUT WHEN WE GET THERE. LET'S COUNT YOU DOWN TO THOSE CLOSING BELLS. ABOUT EIGHT MINUTES AWAY. GET SOME INSIGHT ON THOSE FUNDAMENTALS AND THAT SENTIMENT. ERIKA LOW JOINS US, CEO AND LEAD PORTFOLIO MANAGER AND NORTH GROWTH MANAGEMENT. I AM CURIOUS IF YOU COULD FOCUS A LITTLE BIT ON TO THAT. NOT SO MUCH WITH THE QUARTERS THAT JUST PASSED BUT THE NEXT COUPLE OF EARNINGS SEASONS WHERE WE WILL SEE A LITTLE BIT MORE OF WHAT THE EXPOSURE WAS TO THE WAR IN IRAN AND THE ECONOMIC EFFECTS OF THAT. THE LATEST QUARTER WAS PHENOMENAL. [00:37:39] Speaker 9: THE LATEST QUARTER WAS PHENOMENAL. WE BASICALLY GOT S&P COMPANIES REPORTING EARNINGS GROWTH OVER YEAR OF 29% AND THAT IS RELATIVE TO EXPECTATIONS OF 13%. WHAT WE ARE SEEING IS A POSITIVE PICTURE. AI CAPEX SPENDING WAS A BIG DRIVER OF THE GROWTH BUT IT ALSO WASN'T ALL OF IT AND BLOOMBERG ESTIMATES THAT ALMOST HALF OF THE EARNINGS GROWTH, THE 29%, WAS DRIVEN BY NON-AI BUSINESSES. SO WE ARE GETTING A BROAD GROWTH IN THE ECONOMY OR AT LEAST IN THE CORPORATE EARNINGS SIDE OF THINGS, INCLUDING CONSUMER COMPANIES AS WELL. AS TO THE AI CAPEX SPENDING, IT IS VERY EARLY STAGES AND WE DO SEE THAT CONTINUING FOR YEARS TO COME. THIS IS A MULTI-YEAR GROWTH TREND AND THIS IS JUST THE VERY BEGINNING THAT WE ARE SEEING. SO FROM THE FUNDAMENTALS PERSPECTIVE, EARNINGS, WE DO EXPECT THAT TO CONTINUE THIS YEAR AND WE ARE SEEING ANALYSTS LIFTING ESTIMATES FOR THE YEAR. [00:38:47] Romaine Bostick: ON THE AI STORY AND THAT GROWTH TREND, I DON'T THINK ANYONE DOUBTS, AT LEAST MOST PEOPLE DON'T DOUBT, THE LONG-TERM STRUCTURAL SHIFTS THAT AI IS CREATING FOR THE MARKETS AND THE ECONOMY. I GUESS THERE IS A LARGER QUESTION ABOUT HOW IT HAS BEEN PRICED INTO THIS MARKET AND WHETHER TOO MUCH OF THE UPSIDE [00:39:00] Speaker 9: HAS BEEN PRICED IN, MAYBE TOO SOON? AT NORTHWORTH, WE TAKE A VERY LONG-TERM VIEW, A MINIMUM FIVE-YEAR HORIZON, AND IT IS TRUE THAT THERE HAS BEEN A LOT PRICED IN, SO SOME OF THE PULLBACK THAT WE ARE SEEING IS ACTUALLY HEALTHY. WE ARE REALLY LOOKING AT STOCKS THAT ARE BACK TO WHERE THEY WERE A MONTH AGO OR TWO MONTHS AGO. WE ARE SEEING A LONG LONG RUNWAY OF SPENDING TO COME. LET'S MARRY THAT LOGIC INTO SOME INDIVIDUAL NAMES THAT YOU [00:39:37] Katie Griefeld: ARE LOOKING AT, BECAUSE YOU HIGHLIGHT SIENNA CORP IN THE NOTES THAT YOU SENT OVER TO OUR PRODUCERS, AND THAT IS AN INTERESTING ONE BECAUSE YOU TAKE A LOOK AT THEIR LONGER-TERM CHART HERE, THEIR ONE-YEAR CHART, AND CERTAINLY WHAT A RUN-UP, BUT IN THE PAST WEEK OR SO, ABSOLUTELY BEING PUNISHED. IT SOUNDS LIKE WORKING THAT INTO YOUR METHODOLOGY, THAT IS [00:40:04] Speaker 9: SORT OF WHAT YOU ARE ON THE LOOKOUT HERE FOR. THE FUNDAMENTALS HAVE NOT DETERIORATED. THE STOCK HAS HAD A PULLBACK AFTER REPORTING A VERY STRONG QUARTER AND ACTUALLY LIFTING THEIR GUIDANCE. SIENA IS A LEADER IN HIGH SPEED OPTICAL CONNECTIVITY, AND THEY ARE THE BENEFICIARY OF ACCELERATING BANDWIDTH DEMAND. SO THIS AI DATA CENTER OPPORTUNITY IS MAJOR FOR SIENA, AND IT HAPPENS ACROSS THREE CONNECTIVITY LAYERS. SO THE FIRST ONE IS SCALING ACROSS, AND THIS BUILDS ON SIENA'S FOUNDATIONAL BUSINESS OF REALLY FOCUSING ON WIDE AREA NETWORK CONNECTIONS, AND SO SCALING ACROSS WOULD BE DATA CENTERS TALKING TO OTHER DATA CENTERS, SO INTERCONNECTING DISTRIBUTED AI TRAINING SITES ACROSS LONG DISTANCES. THAT IS ONE CONNECTIVITY. BUT ALSO NOW WITHIN THE DATA CENTER THERE IS OPPORTUNITY, THERE IS A SHIFT HAPPENING IN THAT MORE OPTICAL IS BEING USED IN THE DATA CENTER. SO SIENA COULD ALSO BENEFIT FROM SCALING OUT, WHICH IS CONNECTING DIFFERENT RACKS WITHIN THE DATA CENTER. THEY HAVE TECHNOLOGY FOR THAT. AND EVEN WITHIN AN INDIVIDUAL RACK IN THE DATA CENTER, WHICH IS KNOWN AS SCALING UP, SIENA ACQUIRED NUBIS COMMUNICATIONS LAST YEAR, AND THAT GIVES THEM SOLUTIONS TO ALSO PARTICIPATE MORE WITH THE STRUCTURAL CHANGE THAT IS HAPPENING WITHIN THE DATA CENTER. [00:41:38] Katie Griefeld: AND ERIKA, WE ONLY HAVE ABOUT A MINUTE LEFT. BUT WHEN YOU KNOW YOU ARE DOING DUE DILIGENCE ON INDIVIDUAL NAMES, I WONDER HOW YOU SEPARATE HYPE FROM REALITY. BECAUSE YOU MENTIONED DATA CENTERS. FOR EXAMPLE, IT IS THE BUZZ PHRASE IN THIS MARKET. ROMAIN IS BUILDING ONE ON HIS FIRE ESCAPE. SO HOW DO YOU MAKE SURE THAT YOU ARE INVESTING IN A COMPANY THAT ACTUALLY IS ABLE TO WALK THE WALK? [00:41:59] Speaker 9: WELL, WE DO. THESE ARE COMPANIES THAT WE FOLLOWED FOR QUITE SOME TIME. SIENA WAS A COMPANY THAT WE INITIATED INTO OUR FUND IN 2017. AND THE AI GIVES THEM ANOTHER AVENUE OF GROWTH. BUT EVEN WITHOUT AI, THERE IS THE NEED FOR DATA CENTERS. WE ARE CONSUMING MORE DATA. AND SIENA REALLY IS A LEADER IN THAT CONNECTIVITY, THE HIGH-SPEED OPTICAL CONNECTIVITY, WHICH IS CRUCIAL AS BANDWID DEMAND KEEPS ACCELERATING. [00:42:31] Romaine Bostick: ALL RIGHT, ERIKA. ERIKA LAILE, CEO AND LEAD PORTFOLIO MANAGER OVER AT NORTH GROWTH MANAGEMENT. WE ARE TALKING ABOUT THE S&P 500. THE S&P 500, THE S&P 500, IN THE WAKE OF THAT CPI PRINT, LOOKED [00:42:45] Katie Griefeld: LIKE WE WERE TURNING THINGS AROUND VERSUS THE OVERNIGHT SESSION. WE HAVE JUST SLIPPED CLOSER AND CLOSER TO SESSION LOWS AS WE GET CLOSER TO THAT CLOSE. ORACLE DOWN FOR A FOURTH STRAIGHT DAY HEADING INTO ITS [00:43:02] Romaine Bostick: EARNINGS PRINT. COMING UP AFTER THE BELL TONIGHT. A FULL BREAKDOWN OF ALL OF TODAY'S MARKET ACTION AND A FULL BREAKDOWN OF THOSE ORACLE EARNINGS THAT STARTS RIGHT NOW. [00:43:16] Speaker 1: THE CLOSING BELL, BLOOMBERG'S COMPREHENSIVE CROSS-PLATFORM [00:43:23] Romaine Bostick: COVERAGE OF THE U.S. MARKET CLOSE STARTS RIGHT NOW. RIGHT NOW, WE ARE TWO MINUTES AWAY FROM THE END OF THE TRADING DAY. ALONGSIDE KATIE GRIFFEL TAKING YOU THROUGH TO THAT CLOSING BELL WITH THE GLOBAL SIMULCAST. CAROL MASTER AND TIM STENOVIC JOIN US NOW, HOPEFULLY TO BRING THE ENERGY. WELCOME TO OUR AUDIENCE ACROSS OUR BLOOMBERG PLATFORM, TELEVISION RADIO, OUR PARTNERSHIP WITH YOUTUBE ON [00:43:46] Speaker 10: THE EQUITY AVERAGES AS YOU KNOW, KIND OF HOVERING AROUND THE BOTTOM. IT DOES FEEL LIKE WE GET A [00:43:53] Speaker 11: LITTLE -- WELCOME BACK TIM STENOVIC, BY THE WAY. THANK YOU. I WAS JUST GONE A DAY, BUT IT [00:43:59] Speaker 10: FELT LIKE SO MUCH LONGER. FOR US, TOO. SORRY, CAROL, YOU WERE SPEAKING. I'M USED TO BEING [00:44:06] Speaker 11: INTERRUPTED. GO AHEAD. MY TURN? GO AHEAD. THE S&P 500 IS DOWN 1.5%. IT IS DOWN JUST ABOUT 4.3% FROM THOSE LOWS BACK AT THE END OF MARCH, KATIE. BUT JUST, YOU KNOW, ZOOMING OUT, THIS IS ACTUALLY A PRETTY BIG SELL-OFF IN RECENT DAYS. [00:44:23] Katie Griefeld: YEAH, IT IS INTERESTING. WE WERE JUST TALKING ABOUT IT. HOW YOU THINK ABOUT TODAY, WE DID SEE SOME OF THE MAJOR AVERAGES MANAGED TO TURN POSITIVE. AND THEN IT WAS JUST A SLOW SLIDE LOWER HERE. AND IT FEELS LIKE IT STARTED LAST WEEK WHEN WE GOT THAT DISAPPOINTING FORECAST FROM BROADCOM. IT IS GOING TO BE INTERESTING TO SEE IF MAYBE ORACLE CAN INJECT SOME ENTHUSIASM BACK INTO THIS A.I. TRADE. BUT WHAT A WEEK IT HAS BEEN. [00:44:48] Romaine Bostick: YEAH, BUT THE EXPECTATIONS ARE HIGH ONCE AGAIN. AND YOU FEEL LIKE, OKAY, IF WE SORT OF GET THAT CLOUD REVENUE FORECAST MORE AND IT COMES IN, EVEN IF IT IS ABOVE ESTIMATES, IF IT IS NOT SORT OF ABOVE THE ABOVE ESTIMATES, THEN WHAT DOES THAT DO TO THE MARKET? WE ARE GOING TO FIND OUT IN JUST A FEW MINUTES. THOSE RESULTS ARE IMMINENT AS WE GET THE CLOSING BELLS HERE IN NEW YORK. A DOW JONES INDUSTRIAL AVERAGE SELLING OFF BY ALMOST 1,000 POINTS ON THE DAY, DOWN ABOUT 1.9%. THE S&P DOWN 1.6%. THE NASDAQ INDICES DOWN EACH ABOUT 2% AS WE WAIT FOR THESE NUMBERS TO SETTLE. INDUSTRIAL INDUSTRIAL INDUSTRIAL AND THE RELATIVE OUTPERFORMER, IT IS ONLY DOWN 1.1%. [00:45:24] Speaker 10: ALL RIGHT, LET'S GO AT THE S&P 500, FOLKS. WE'VE GOT ABOUT 328 NAMES LOSING GROUND ON THIS WEDNESDAY. 174, KATIE, TO THE UPSIDE, ONE UNCHANGED. [00:45:34] Katie Griefeld: LET'S TAKE A LOOK AT THE SECTOR PERFORMANCE AS WELL. A DIFFERENT PICTURE FROM YESTERDAY. YOU DEFINITELY HAD MORE LOSERS THAN GAINERS. THREE SECTORS IN THE GREEN LEADING THEM WAS CONSUMER STAPLES, A PRETTY DEFENSIVE READ THERE TO SEE THAT SECTOR IN PARTICULAR RALLYING THE MOST BY 1.7%. ENERGY ALSO HIGHER AS BRENT PRICES DO MARCH HIGHER. REAL ESTATE ALSO MANAGING TO SQUEEK OUT AGAIN. BUT AT THE BOTTOM OF THE PACK, INDUSTRIALS DOWN 3.4% AND 2.5% DECLINE IN MATERIALS. [00:46:06] Romaine Bostick: I JUST WANT TO POINT OUT THE DOW JONES INDUSTRIAL AVERAGE DOWN THE MOST, BIGGEST ONE-DAY DROP I SHOULD SAY SINCE OCTOBER OF LAST YEAR. [00:46:14] Speaker 10: ALL RIGHT, GUYS, LET'S GET TO SOME OF THE GAINERS IN TODAY'S SESSION. GOT TO START WITH CRACKER BARREL. A RECORD GAIN INTRA DAY, HIGHEST IN NEARLY EIGHT MONTHS. ONE POINT INTRA DAY, THE STOCK WAS UP AS MUCH AS 35%. HERE AT THE CLOSE, IT'S A GAIN OF JUST SHY OF 23%. LOGO AND RESTAURANT DESIGN SCANDAL BE GONE. I CAN'T BELIEVE. I KNOW, SALT AND PEPPER SHAKERS, AMERICANA. [00:46:39] Romaine Bostick: BEST DAY SINCE 2020. I KNOW. [00:46:42] Speaker 10: HOW MANY TIMES DO YOU GO THERE? [00:46:43] Romaine Bostick: ALL THE TIME. I LOVE CRACKERS. [00:46:45] Speaker 10: CLINTON, NEW JERSEY. GOOD TO KNOW. ANYWAY, DEFINITELY A DIFFERENT SONG ON WALL STREET HERE FOR THIS ONE. A DIFFERENT TUNE WHEN IT COMES TO INVESTORS. RESTAURANT CHAIN RAISED ITS FULL YEAR REVENUE GUIDANCE AND SAID DECLINES IN STORE TRAFFIC ARE MODERATING. IT'S NOW UP ABOUT 80% YEAR TO DATE. 27% OF THE FLOAT IS SHORT, THOUGH. SO JUST KEEP THAT IN MIND IN TERMS OF SENTIMENT. HEY, I GOT TO GO TO WHAT IS THE NUMBER ONE GAINER IN THE S&P 500, AND THAT IS CASEY'S GENERAL STORES. SHARES RALLYING AFTER THE CONVENIENCE STORE CHAIN REPORTED REVENUE FOR THE FOURTH QUARTER. THAT DID BEAT THE AVERAGE ANALYST ESTIMATE. AND THERE WAS ONE STANDOUT STAT. THERE ARE A BUNCH OF STATS YOU COULD GO OVER. BUT FUEL REVENUE, $2.88 BILLION UP, 18% YEAR OVER YEAR, EASILY BEATING THE ESTIMATE ON THE STREET OF $2.66 BILLION. THAT CERTAINLY HELPED THE COMPANY OUT. STOCK IS UP NEARLY 60% YEAR TO DATE. ONLY ABOUT 4% OF THE FLOAT IS SHORT. AND THEN I JUST WANT TO GO REAL QUICKLY TO AN IPO TODAY, PARABILIS MEDICINES. I'M HOPEFULLY SAYING IT CORRECT. I DON'T KNOW IF I AM. PBLS, BIOPHARMACEITICAL AND CLINICAL STAGE CANCER DRUG COMPANY RAISED NEARLY $745 MILLION. IT WAS AN UPSIZED IPO, PRICING ABOVE ITS MARKETED RANGE AND A PRIVATE PLACEMENT. ONE EXISTING INVESTOR ARE A CAPITAL TAKING MORE THAN HALF OF THE SHARES IN THAT IPO. THAT'S ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER. THAT'S NOT CLOSING UP 58%. SO, PRETTY SUCCESSFUL IPO HERE. [00:48:08] Speaker 11: OKAY, NOT ALL IPOS GOOD TODAY. AND I'LL GET TO ONE OF THOSE A LITTLE LATER. BEFORE WE DO THAT, THOUGH, I WANT TO GET TO SUPER MICRO. THE WORST PERFORMER IN THE S&P 500 BY A LONG SHOT TODAY. FELT 28%. IT WAS THE BIGGEST DROP GOING ALL THE WAY BACK TO MARCH. THAT'S THE STOCK OF SUPER MICRO OVER THE LAST COUPLE OF YEARS. VERY VOLATILE. THE COMPANY ANNOUNCED THIS PLAN TO RAISE $7 BILLION THROUGH A PACKAGE OF EQUITY OFFERING STELL PAY FOR THE PRODUCTION OF MORE AI SERVERS. INVESTORS DID NOT LIKE THE SOUND OF THAT. THE FINANCING PLAN EXPECTED TO DILUTE NEAR-TERM EARNINGS BUT ALSO SIGNALS THAT AI DEMAND COULD LIFT FISCAL 2027 REVENUE ABOVE THE $50 BILLION CONSENSUS. ONCE AGAIN, SUPER MICRO SHARE IS FALLING 28%. WHY IS THE STOCK IN THE S&P 500? WELL, IT WAS AND THEN IT WASN'T AND THEN IT WAS AGAIN. YEAH, I KNOW. LIKE, I DON'T KNOW. I MEAN, YOU'RE GOING TO HAVE TO ASK THE GROUP OF PEOPLE WHO MAKE THAT DECISION, RIGHT? OKAY. MAYBE WHILE YOU'RE AT IT YOU CAN ASK THEM SOME QUESTIONS ABOUT SPACEX. [00:49:02] Katie Griefeld: I WAS GOING TO SAY I FEEL LIKE WE ALL CARE ABOUT INDEX METHODOLOGY MORE THAN WE EVER HAVE. YEAH. WHICH IS A BEAUTIFUL THING. WE DO. [00:49:08] Speaker 11: WE SPOKE TO THE CEO OF WEALTHFRONT, DAVID FORTUNATO A LITTLE EARLIER ABOUT HOW, YOU KNOW, AFTER MAYBE FOUR OR FIVE DAYS, SPACEX WILL BE IN VTI. [00:49:17] Speaker 7: YEAH. [00:49:18] Speaker 11: AND HOW, YOU KNOW, THEY HAD A BLOG POST ON THEIR WEBSITE SO PEOPLE CAN INCLUDE OR EXCLUDE IT FROM THE PORTFOLIO. IT'S BEEN A VERY POLARIZING STOCK AS YOU GUYS KNOW. WE'VE ENCOUNTERED IT. [00:49:28] Katie Griefeld: YEAH. [00:49:29] Speaker 11: YOU'VE ENCOUNTERED THIS. LET'S TALK ABOUT SOME LESS THAN TRUCKLOAD COMPANIES. LTL COMPANIES. SPEAKING ROMANE'S LANGUAGE. I KNEW THAT ROMANE WOULD LOVE THIS STORY. LOOK AT THIS. I WAS ON THE PHONE ALL MORNING ABOUT THIS. OKAY. OLD DOMINION DOWN 5%, FEDEX FREIGHT DOWN 7%, SEA DOWN 3.3%. [00:49:49] Speaker 10: WHAT DOES THAT SAY? [00:49:50] Speaker 11: IT SAYS THAT AMAZON IS GETTING INTO THEIR TERRITORY. AMAZON ANNOUNCED AN EXPANSION OF ITS OWN SHIPPING SERVICE. IT INCLUDES LESS THAN TRUCKLOAD OFFERINGS TO DESTINATIONS ACROSS THE U.S. IT IS PART OF THE AMAZON SUPPLY CHAIN SERVICES SUITE. ANALYSTS HAVE A MIXED VIEW ON THE IMPACT. BUT THERE ARE SOME CONCERNS ABOUT LEGACY CARRIERS SUCH AS THESE TAKING A HIT AS A RESULT OF AMAZON GETTING IN THEIR TERRITORY. I WAS ON THE HIGHWAY YESTERDAY AND SAW AN UBER FREIGHT TRUCK WHICH IS NOT SOMETHING THAT YOU SEE EVERY DAY. ALL RIGHT. WE HAVE ORACLE HEADLINES CROSSING. TAKE IT AWAY. [00:50:23] Romaine Bostick: THAT'S RIGHT. ORACLE JUST CROSSING THE WIRE RIGHT NOW IN THE FOURTH QUARTER. WE'LL START WITH THE REVENUE NUMBER. OVERALL REVENUE, $19.18 BILLION. THAT'S SLIGHTLY ABOVE THE AVERAGE OF STREET ESTIMATES. THEY WERE LOOKING FOR ABOUT 19.09. SOFTWARE REVENUE AT 6.82. THAT'S A SLIGHT MISS. THE STREET WAS LOOKING FOR 6.88. OPERATING INCOME AS WELL AS OPERATING MARGIN. JUST A SMIDGE ABOVE EXPECTATIONS. THE BOTTOM LINE A LITTLE BIT BETTER, $2.11 A SHARE. IN THE MOST RECENT QUARTER, THE STREET WAS LOOKING FOR A $1.97, SO A BEAT ON THAT NUMBER. TRYING TO SUSS OUT THE CLOUD REVENUE HERE, BUT IT DOES LOOK LIKE THEY BEAT ON MOST OF THE METRICS. SERVICE REVENUE UP 13%, HARDWARE REVENUE UP ABOUT 9% AS WELL. NOT SEEING ANY GUIDANCE JUST YET THAT JUMPS OUT, BUT YOU SEE THE KNEE-JERK REACTION TO THE DOWNSIDE WITH THE SHARES. [00:51:12] Katie Griefeld: ALSO TAKING A LOOK AT FREE CASH FLOW HERE, CERTAINLY A METRIC THAT HAS BEEN IN FOCUS FOR ORACLE. FREE CASH FLOW WAS NEGATIVE $23.7 BILLION FOR THE FISCAL YEAR 2026. WE KNOW THAT ORACLE HAS BEEN TRYING TO SHIFT THE BUSINESS A LITTLE BIT HERE, TRYING TO SUPPORT ITS CLOUD INFRASTRUCTURE BUSINESS. AS A RESULT, THAT HAS MEANT THAT THEY HAVE BEEN BURNING FREE CASH FLOW. [00:51:35] Romaine Bostick: THOSE CLOUD INFRASTRUCTURE NUMBERS NOW CROSSING THE WIRE. REVENUE WAS 5.79 BILLION. THE STREET WAS LOOKING FOR 5.72 BILLION. [00:51:46] Speaker 11: THIS GETS BACK TO THE QUESTION ABOUT HIGH EXPECTATIONS. A MODEST SPEED, BUT OBVIOUSLY NOT ENOUGH. THE TOTAL CLOUD REVENUE, 9.9 BILLION, UP 47% IN U.S.D. I'M LOOKING AT THE PRESS RELEASE HERE. QUARTERLY REVENUE IS INCREASING 21%. IN TERMS OF COMMENTARY, WE'LL HAVE TO WAIT UNTIL WE GET ON THE EARNINGS. WE'VE GOT THAT CLOUD INFRASTRUCTURE REVENUE UP 5.8 BILLION, UP 92% IN CONSTANT CURRENCY AND 93% IN DOLLARS. FOURTH QUARTER CLOUD APPS, THAT'S THE SAS REVENUE, 4.1 BILLION. THAT'S UP 10%. [00:52:16] Romaine Bostick: I WANT TO KEEP HARMING THIS IDEA OF HIGH EXPECTATION. YOU SAID 90% GROWTH, WHICH BY ANY OTHER MEASURE, BUT ALSO WHEN YOU LOOK AT THIS EARNINGS RELEASE, AT LEAST THE NARRATIVE THAT THEY GIVE OUT, YOU SEE THE WORD RECORD OVER AND OVER AGAIN. RECORD PERFORMANCE OBLIGATIONS. RECORD EARNINGS. RECORD REVENUES, RECORD EPS, RECORD THIS. I CAN GO ON AND ON, BUT THAT'S JUST NOT IT. [00:52:37] Speaker 10: THAT'S JUST NOT ENOUGH. [00:52:39] Romaine Bostick: DOWN 8% IN THE AFTERHOURS. [00:52:40] Speaker 10: DOWN 8% IN THE AFTERHOURS. IT'S UP ABOUT 5.6% YEAR TODAY. IT'S UP 50% SINCE THE LOW IN EARLY FEBRUARY. YOU'VE GOT TO KIND OF THINK ABOUT WHAT INVESTOR EXPECTATIONS WERE GOING INTO THIS. AND MAYBE, LIKE YOU SAY, RECORD NUMBERS, SIGNIFICANT, BUT MAYBE JUST NOT ENOUGH. WHAT ARE YOU TALKING ABOUT? [00:52:55] Speaker 11: BUT THEY'RE DOWN. CAROL MASTER. FORTUNATELY, ANURAG IS JOINING US IN JUST A MINUTE. [00:53:00] Speaker 10: DOWN NOW. [00:53:01] Romaine Bostick: DOWN FROM THEIR HIGH. DOWN, WHAT, 10%, 11%, 12% FROM THAT RECORD HIGH, WHICH WAS ALL THE WAY BACK IN SEPTEMBER. THIS HAS BEEN AN UNDERPERFORMER. [00:53:08] Speaker 10: BUT WHAT I'M SAYING IS THAT THEY'VE RALLIED SINCE THE LOW IN FEBRUARY. SO THEY'VE HAD A BIT OF A BOUNCE BACK. [00:53:14] Romaine Bostick: I'M JUST SAYING THAT GOING INTO THIS. [00:53:16] Speaker 10: IF YOU GO BACK EVEN FURTHER, THERE'S A LOT OF PERSPECTIVE. BUT IN THE RECENT TONE, IT'S BEEN A LITTLE BIT HIGHER. CAN WE ARGUE ABOUT THIS LATER? [00:53:24] Romaine Bostick: YEAH. [00:53:25] Speaker 10: I'LL BE OUT THE DOOR. [00:53:27] Speaker 11: I'LL BE WAITING FOR YOU. RATE AT 501. YOU'LL BE OVER AT YOUR DESK READY TO TALK ABOUT ORACLE. I CAN TELL YOU THAT. [00:53:33] Speaker 10: WE'LL TALK ABOUT ORACLE. THAT IS A WRAP. WE CALL IT THE CLOSE. ON THE CLOSE, REMAIN AND KATIE CONTINUING ON TV. [00:53:48] Romaine Bostick: TIM AND I ON BLOOMBERG BUSINESS WEEK DAILY. WE'LL SEE YOU AGAIN SAME TIME, SAME PLACE TOMORROW. WE'RE KEEPING AN EYE ON THOSE EARNINGS OUT OF ORACLE. I JUST WANT TO BRING YOU TO YOUR ATTENTION RIGHT NOW. WE'RE KEEPING AN EYE ON SHARES OF ORACLE DOWN IN THE AFTERHOURS TRADE. THE COMPANY JUST REPORTED ITS FISCAL FOURTH QUARTER NUMBERS MORE OR LESS IN LINE WITH ESTIMATES GIVE OR TAKE JUST A BIT. WE'RE NOW STARTING TO GET A LITTLE BIT MORE CLARITY ON THE FORECAST. FOR THE CURRENT QUARTER, THE COMPANY IS EXPECTING GROWTH, REVENUE GROWTH OF 27% TO 29%, EPS GROWTH OF 17% TO 20%. THESE NUMBERS ARE SLIGHTLY ABOVE ESTIMATES. THEY SAY ADJUSTED FIRST QUARTER EPS WILL BE ABOUT 172 TO 176. THEY'RE ALSO CONFIRMING ITS PRIOR REVENUE GUIDANCE OF $90 BILLION FOR FULL YEAR 2026. WE'LL HAVE TO DOUBLE CHECK THAT NUMBER. I'LL JUST SCRATCH THAT ONE HERE. A LOT OF NUMBERS ARE CROSSING THE WIRE RIGHT NOW. YOU SEE THE BACK AND FORTH IN THE SHARES. [00:54:56] Katie Griefeld: THEY'RE GOING TO PUT IN THE SHARES ON THE SHARES. ABSOLUTELY, TRYING TO DECIDE WHAT TO DO, HOW TO FEEL ABOUT SOME OF THE FIGURES THAT WE'RE GETTING. ORACLE ALSO SAYING ITS FOURTH QUARTER, REMAINING PERFORMANCE OBLIGATIONS TOTAL ABOUT $638 BILLION. THAT COMPARES TO THE YEAR-OVER-YEAR NUMBER OF $138 [00:55:16] Romaine Bostick: BILLION. THE BIG QUESTION FOR ORACLE, OF COURSE, IS HOW QUICKLY THEY CAN CONVERT THAT INTO ACTUAL REVENUE. IT GETS TO THIS IDEA, TOO, OF HIGH EXPECTATIONS. I KNOW WE TALKED A LOT ABOUT THE STOCKS BEING WELL INVOLVED IN THE SHARES. THE NUMBERS ARE PHENOMENAL IN TERMS OF PERCENTAGE GROWTH. THE NUMBERS ARE PHENOMENAL IN TERMS OF PERCENTAGE GROWTH. PEOPLE ARE JUST LOOKING FOR SO MUCH MORE THAN THAT. THAT'S A STORY THAT YOU CAN EXTRAPOLATE OUT TO ALL OF AI [00:55:44] Katie Griefeld: INFRASTRUCTURE AT THIS MOMENT. WE KNOW THAT ORACLE IS REPORTING INTO A VERY JITTERY MARKET AND IT MIGHT EXPLAIN TO SOME OF THAT. THAT WE'RE SEEING IN SHARES AFTER HOURS NOW LOWER AGAIN. BUT CERTAINLY OFF THE SESSION LOWS THAT WE SAW, SHARES DROPPING 8% IMMEDIATELY AFTER THESE FIGURES CAME OUT. [00:56:04] Romaine Bostick: ABSOLUTELY. LET'S GET SOME INSIGHTS OUT OF RISHI, MANAGING DIRECTOR COVERING SOFTWARE EQUITY RESEARCH OVER AT RBC CAPITAL. RISHI, IT'S HARD TO KNOW WHAT TO MAKE OF THESE NUMBERS. GIVE ME YOUR FIRST IMPRESSION OVERALL AS TO WHAT YOU SAW IN THE MOST RECENT QUARTER AND WHAT YOU MAKE OF THE GUIDANCE. YEAH, ABSOLUTELY. LOOK, I THINK YOU HIT THE NAIL [00:56:26] Speaker 12: ON THE HEAD. THESE ARE BY ANY STRETCH OBJECTIVELY REALLY STRONG NUMBERS IF WE LOOK AT THE RPO, WE LOOK AT THE OCI GROWTH. BUT WHEN YOU'VE HAD A 50% BOUNCE OFF THE BOTTOMS AND THERE'S JITTERYNESS NOT JUST AROUND THE AI TRADE BUT HOW ORACLE WILL PAY FOR THEM AROUND THE CERTAINTY OF SOME OF THE FUTURE NUMBERS AND IMPORTANTLY AROUND CAPEX AND WE DON'T HAVE A CAPEX GUIDE YET. WE'RE WAITING FOR THE CALL BUT WE'VE SEEN COMPONENT PRICE INFLATION, ALL THE OTHER HYPER SCALERS HAVE TALKED ABOUT THAT. MEMORY PRICES HAVE GONE THROUGH THE ROOF AND YOU'VE SEEN THAT SHOW UP IN THE HARDWARE TRADE. I THINK THAT'S WHY YOU'RE SEEING THIS CRAZY AMOUNT OF VOLATILITY IN THE AFTERMARKET AND IT MIGHT REQUIRE UNTIL WE GET THE ACTUAL CALL AND A LITTLE BIT MORE GRANULARITY TO GET MORE COMFORT AROUND EXACTLY THE TRAJECTORY FROM HERE. [00:57:09] Romaine Bostick: GOOD POINT AND I WANT TO REITERATE FOR THE GUIDANCE FOR THE CURRENT QUARTER THAT WE'RE IN AND I'M GOING TO CITE THE CLOUD REVENUE NUMBERS WHICH IS WHAT EVERYONE IS FOCUSED ON. THEY ARE EXPECTED TO GROW 57% AND 57% IS THE NUMBER HERE. I JUST WANT TO DRAW YOUR ATTENTION TO THE GENERAL IDEA OF THE SUSTAINABILITY OF SOME OF THE GROWTH RATES. THE IDEA THAT THIS AI BUILDOUT, AT LEAST IF YOU BELIEVE CERTAIN FOLKS ON THE STREET IS STILL IN ITS RELATIVE INFANCY. IS ORACLE, IF THAT IS TRUE, IS ORACLE STILL THE PRIMARY BENEFICIARY OF THAT LONG-TERM? [00:57:47] Speaker 12: YEAH, LOOK, I DON'T KNOW IF IT'S A NECESSARILY PRIMARY BENEFICIARY, BUT I WOULD SAY MOST LEVERED TO THAT, RIGHT? ESPECIALLY TO OPEN AI IN THIS CASE. OBVIOUSLY THERE'S A LOT OF COMPETITION BETWEEN THEM AND ANTHROPIC, BUT I THINK THE VIEW IS THAT THERE'S JUST MORE LEVERAGE. IF WE WERE TO SAY HOW MUCH BUSINESS FROM ORACLE OR OCI SPECIFICALLY IS COMING FROM A.I., IT'S MEANINGFULLY HIGHER THAN IF YOU WERE TO SAY THAT SAME PERCENTAGE FOR MICROSOFT, AZURE OR AMAZON WEB SERVICES. AND TO A CERTAIN EXTENT, ORACLE HAS ALMOST BECOME AS A STOCK A LITTLE BIT OF A PROXY FOR THAT A.I. INFRASTRUCTURE AND A.I. BUILDOUT TRADE. SO I THINK THAT'S KIND OF THE WAY THAT WE WOULD VIEW THAT. [00:58:27] Katie Griefeld: WELL, LET'S TALK A LITTLE BIT MORE ABOUT THAT BECAUSE I WONDER HOW MUCH CONCERN YOU HAVE AROUND CONCENTRATION RISK. YOU THINK ABOUT THE OPEN A.I. RELATIONSHIP, OPEN A.I. AND ANTHROPIC IN A LITTLE BIT OF AN ARMS RACE HERE. AND I MEAN, HOW MUCH OF A CONCERN IS THAT FOR A COMPANY LIKE ORACLE, THAT CUSTOMER CONCENTRATION, THAT RELIANCE? [00:58:48] Speaker 12: YEAH, IT'S A HUGE DEAL, RIGHT? AND I THINK IT HITS ITS POINT IN TWO WAYS. NUMBER ONE IS, WELL, MAYBE OPEN A.I. WAS VIEWED AS THE HANDS-DOWN LEADER WHEN THEY FIRST SIGNED THIS DEAL. AND OBVIOUSLY THE PERCEPTIONS HAVE SHIFTED. OPEN A.I. IS MAKING A BIG COMEBACK WITH GPT 5.5 AND CODEX GAINING SHARE. BUT THE VIEWPOINT IN THE MARKET IS STILL ANTHROPIC IS AHEAD OF THEM. NOT MY OPINION, JUST SAYING WHAT I'M HEARING AT LEAST FROM THE MARKET. AND THEN I THINK FOR ORACLE, THERE IS ALSO THE WORRY OF, WHAT THE MARKET LOOKS LIKE, WHAT THE MARKET LOOKS LIKE? WHAT THE MARKET LOOKS LIKE? IF YOU ARE SIGNING SUCH A BIG DEAL WITH ONE CUSTOMER, WHAT SORT OF CONCESSIONS, WHAT SORT OF PRICING? IF YOU THINK ABOUT ALL THE HARDWARE BEING PUT OUT HERE, ARE THE INCREMENTAL MARGINS GOOD ENOUGH OR IS THIS GOING TO HURT WHAT HAS BEEN A VERY, VERY PROFITABLE COMPANY? [00:59:39] Katie Griefeld: STILL A LOT OF UNANSWERED QUESTIONS HERE. WE ARE TALKING ABOUT TWO PERCENT OR SO. WE ARE ALSO COUNTING DOWN TO THEIR CONFERENCE CALL. AT THIS JUNCTURE, AS YOU SAID, THERE ARE A LOT OF QUESTIONS OUT THERE. WHAT ARE YOU MOST INTERESTED TO HEAR FROM MANAGEMENT AT THIS [00:59:54] Speaker 12: POINT? WHAT ARE YOU MOST INTERESTED TO? I THINK THEY ARE TALKING ABOUT THEIR DIVERSISFICATION STRATEGY FOR OCI, ESPECIALLY FOR AI INFRASTRUCTURE, AS EVERYONE IS FACING COMPUTE SHORTAGES AND ORACLE IS IN A GOOD PLACE AND OBVIOUSLY HAS GPU ALLOCATION. ALONGSIDE THAT, I WANT TO HEAR ABOUT THEIR CAPEX. WE HAVE SEEN THE COMPONENT PRICE INFLATION. WE HAVE SEEN THE FACT THAT THE TOP HYPER SCALERS ARE SPENDING OUT OF THE COMPONENT. WE HAVE SEEN THE FACT THAT WE ARE LOOKING FOR THE [01:00:29] Romaine Bostick: CURRENT CALENDAR YEAR 26 AND THAT NUMBER COULD BE HIGHER. IT IS A TOUGH BALANCING ACT, BUT LOOKING FOR BOTH OF THOSE HERE. THEY ARE SAYING THEY DON'T PLAN TO ISSUE ANY MORE DEBT IN THE CURRENT CALENDAR YEAR OF 2026. WHEN WE TALK ABOUT THE NEEDS, AND THIS GOES BEYOND ORACLE, BUT THE FINANCING NEEDS TO CONTINUE THIS BUILDOUT, Rishi, WHAT MAKES YOU COMFORTABLE AS AN ANALYST AS TO WHERE THAT MONEY COMES FROM? WHAT ARE YOU LOOKING FOR? [01:00:56] Speaker 12: WHAT ARE YOU LOOKING FOR? I THINK IT WILL BE A MIX OF ALL OF THE ABOVE. THEY HAVE THE DEBT, LOOKING AT SPECIAL VEHICLES. THEY HAVE TALKED ABOUT EQUITY ISSUES, AND YOU HAVE SEEN OTHERS IN THE SPACE, HYPER SCALERS, ISSUE EQUITY IN ORDER EQUITY IN ORDER THAT WE HAVE SEEN OTHERS. I THINK IT WILL BE A MIX OF ALL OF THESE SPECIAL PURPOSE VEHICLES. I WOULD ALSO POINT OUT ORACLE IS TRYING TO FIND EFFICIENCIES WITHIN THE ORGANIZATION. THEY ANNOUNCED A PRETTY BIG LAYOFF NOT TOO LONG AGO, AND I [01:01:24] Katie Griefeld: THINK THAT FREES UP CAPITAL. I THINK IT WILL BE A LITTLE BIT. I REALLY APPRECIATE YOUR ANALYSIS AS WE PARSE THROUGH THESE ORACLE NUMBERS. HE IS MANAGING DIRECTOR COVERING SOFTWARE EQUITY RESEARCH OVER AT RBC CAPITAL MARKETS. ORACLE REPORTING QUARTERLY CAPEX FIGURES HIGHER THAN ESTIMATES HERE, RAISING INVESTORS CONCERNED ABOUT PROFITABILITY, EVEN THOUGH AS WE HAVE BEEN POINTING OUT, YOU TAKE A LOOK AT THESE NUMBERS, THE DIFFERENT RECORDS THAT THEY HAVE BEEN REPORTING, AND EVEN THOUGH WE ARE GOING TO TAKE A LOOK AT THE END OF THEM. [01:01:59] Romaine Bostick: THE CONFERENCE CALL IS GOING TO TAKE A LOOK AT THE CONFERENCE CALL. IT DOESN'T SEEM TO MEET THE BAR THAT INVESTORS HAVE BEEN EXPECTING. THIS PUT THE CONFERENCE CALL MORE IN FOCUS. I WANT TO APOLOGIZE TO OUR VIEWERS. THIS RELEASE IS ALL OVER THE MAP, TO PUT IT MILDLY. TRYING TO GET NOT ONLY WHAT THE NUMBERS ARE, BUT A GOOD COMP AS TO WHAT THEY WERE SUPPOSED TO BE HERE. MANAGEMENT WILL HAVE A LOT OF EXPLAINING TO DO ON THE CONFERENCE CALL ABOUT THE SUSTAINABILITY OF THIS [01:02:23] Katie Griefeld: CONFERENCE CALL. IT WILL BE INTERESTING TO HEAR WHAT THE SELL SIDE HAS TO ASK THEM. YOU ALSO WRIT OUT THIS HEADLINE. I DO THINK IT IS INTERESTING THAT ORACLE DOESN'T EXPECT TO ISSUE MORE DEBT IN CALENDAR 2026. WE HAVE SEEN A LOT OF THEIR PEERS HIT THE PRIMARY MARKETS WOULD BE INTERESTED OUT FOR NOW. COMING UP, WE WILL STICK WITH THE ORACLE RESULTS AND TALK TO SARAH KUNST OF CLIO CAPITAL. [01:02:55] Speaker ?: SHE JOINS US NEXT. [01:02:57] Katie Griefeld: THIS IS THE CLOSE ON BLOOMBERG. KEEPING AN EYE ON CHAIRS OF ORACLE, SLIPPING AFTER HOURS INVESTMENT. LET'S GET INTO IT WITH SARAH KUNST. SHE IS FOUNDER AND MANAGING DIRECTOR AT CLIO CAPITAL. GREAT TO HAVE YOU WITH US. YOU TAKE A LOOK AT THE REACTION HERE. I'M CURIOUS WHAT YOU MAKE OF THESE FIGURES AND HOW THEY STACK UP AGAINST THE EXPECTATIONS. [01:03:34] Speaker 13: I THINK THE EXPECTATIONS WERE FOR THEM TO PULL A RABBIT OUT OF A HAT THAT IS NOT THERE. I DON'T THINK THESE ARE TERRIBLE RESULTS SO FAR. WE WILL SEE IN THE OVERNIGHT AND INTO TOMORROW. I THINK THE REALITY IS THAT THIS IS A COMPANY THAT THE FIVE YEAR WHEN YOU PULL BACK, IT HAS BEEN A HUGE RAMP UP. THE ONE YEAR HAS BEEN PRETTY MUTED. THIS IS A COMPANY THAT PEOPLE GOT EXCITED ABOUT FOR A WHILE WITH A.I., BUT THE BLOOM HAS SORT OF BEEN OFF THE ROSE. AND I'M NOT SHOCKED TO SEE PEOPLE WANTING TO SEE REAL NUMBERS. AND THEN WHEN THEY ARE NOT THRILLED WITH THE RESULTS, THEY ARE SELLING A BIT. [01:04:10] Katie Griefeld: AND I DO WONDER, THIS IS SOMETHING WE WERE JUST TALKING ABOUT WITH RISHI DELOREA AS WELL. I MEAN, HOW MUCH THAT COULD COME DOWN TO SHIFTING SENTIMENT WHEN IT COMES TO OPEN A.I. WE KNOW THAT THEY HAVE THIS VERY CLOSE RELATIONSHIP WITH OPEN A.I. WHICH IS IN AN ARMS RACE OF SORTS WITH ANTHROPIC. AND CERTAINLY RECENT REPORTING MIGHT SUGGEST THAT ANTHROPIC HAS A LITTLE BIT OF A LEAD HERE. I MEAN, DO YOU THINK THAT'S A FAIR ARGUMENT TO MAKE? [01:04:36] Speaker 13: YEAH, I THINK THAT OPEN A.I. HAS BEEN SORT OF BESIEGED BY ALL SIDES. AND IT MAKES SENSE THAT THE COMPANIES THAT HAVE GROWN ON THE BACKS OF OPEN A.I. SUCCESS WOULD ALSO START TO KIND OF DIMINISH IN THIS MOMENT AS PEOPLE REALIZE THAT OPEN A.I. MAY NOT BE THE WINNER THAT ANTHROPIC AND ALPHABET ARE CLAIMING THAT THRONE WITH A LOT MORE AUTHORITY. AND SO I'M NOT SHOCKED TO SEE THAT SORT OF WAIN. I ALSO THINK ORACLE JUST HAS A LOT ON THEIR PLATE. THEY HAVE A LOT OF DIFFERENT BUSINESSES. THEY HAVE A CEO WHO IS VERY DISTRACTED WITH HIS OTHER SORT OF SIDEQUEST IN THE MEDIA BUSINESS. SO I'M NOT SHOCKED TO SEE THAT PEOPLE JUST AREN'T THAT EXCITED ABOUT THIS NAME RIGHT NOW. [01:05:21] Romaine Bostick: I AM CURIOUS ABOUT WHAT NAMES PEOPLE ARE GETTING EXCITED ABOUT. LET'S JUST EXCLUDE THE BIG ONE THAT WE KNOW EVERYONE IS GOING TO BE EXCITED ABOUT IN ABOUT 24 TO 48 HOURS. BUT THERE'S ALSO A LOT OF OTHER COMPANIES UNDERNEATH THE SURFACE BOTH POTENTIALLY GOING PUBLIC AND EVEN A COUPLE THAT ARE IN THE PUBLIC SPACE, SARAH. HAS THE AI TRADE EFFECTIVELY ALREADY EVOLVED AND MOVED ON? [01:05:43] Speaker 13: I THINK IT HAS A BIT. I MAINTAIN MY EXCITEMENT ABOUT NAMES THAT I THINK ARE STILL A LITTLE BIT OVERLOOKED LIKE ALPHABET, WHICH IS DOING A LOT OF WHAT WE WANT FROM THE ORACLES, FROM THE OPEN AIS, FROM THE ANTHROPICS AND FROM THE SPACEXES AND EVEN FROM THE TESLAS ALL UNDER ONE HOOD AT A MUCH LOWER KIND OF RELATIVE VALUATION. THERE ARE NAMES LIKE THAT. I THINK PEOPLE ARE STARTING TO LOOK FURTHER AFIELD AND WONDER WHAT ELSE IS IN THE PRIVATE MARKETS. AS THESE INVESTORS GET LIQUIDITY IN THESE IPOs IN THE NEXT COUPLE MONTHS FROM THAT SORT OF DARK TRINITY, WE WILL SEE THAT MONEY ALMOST IMMEDIATELY GO BACK TO WORK IN THE PRIVATE MARKET. I THINK WHERE THEY ARE GOING TO PUT THEIR BETS IS GOING TO BE A NEXT NEXT GEN OF AI THAT IS A LITTLE BIT MORE TARGETED AND NOT BURNING QUITE SO MUCH MONEY. THE LESS MONEY THAT YOU BURN IN DATA CENTERS, THE LESS GREAT THAT IS FOR ORACLE. [01:06:39] Romaine Bostick: I THINK THEY ARE GOING TO BE A LITTLE BIT MORE TARGETING. I AM CURIOUS, AND I KNOW YOU FOCUS A LOT MORE ON THE V.C. SPACE AND PUBLIC MARKETS, AND I HATE TO PUT YOU ON THE SPOT, BUT WHEN YOU LOOK AT SPACEX COMING TO MARKET, WHICH IS PRETTY MUCH POSITIONING ITSELF AS AN AI COMPANY RATHER THAN A SPACE [01:06:56] Speaker 13: LAUNCH STARLING COMPANY, WOULD YOU BUY INTO THAT? NO. THE REALITY IS IF THEY WERE GOING TO FIGURE OUT AI, I THINK THEY WOULD HAVE DONE IT BY NOW. THEY HAVE ACCESS TO GREAT ENGINEERS, MANY OF WHOM HAVE LEFT. THEY ARE GOING TO BE HAPPENING. THEY ARE GOING TO BE HAPPENING. THEY ARE GOING TO BE HAPPENING. THERE IS NOT REALLY MUCH THERE. YOU HAVE ELON'S WORD TO GO ON. IF YOU RUN THAT BACK OVER THE LAST 10, 15 YEARS IN HIS OTHER COMPANIES, ELON'S WORD MEANS THAT IT IS COMING 10 YEARS, 5 YEARS LATER THAN WHAT HE SAYS AT BEST, AND OFTEN AT A MUCH LESS LUCRATIVE STANCE THAN WHAT HE HAS SAID. IT IS UNFORTUNATE THAT A LOT OF THESE PUBLIC COMPANIES AND THESE INDEXES ARE GOING TO BE THE ONES WHO ARE FORCED BUYERS. [01:07:45] Romaine Bostick: ALWAYS APPRECIATE YOUR CANDOR. WE ARE EXPECTED TO GET THE PRICING FOR THE SPACE X IPO AS SOON AS TOMORROW AFTERNOON WITH THE START OF TRADING ON FRIDAY. WE ARE ALSO EXPECTING MAYBE IN THE NEXT FEW WEEKS TO HEAR FROM ANTHROPIC IN THE PUBLIC SPACE AND MAYBE IN A FEW MONTHS, OPEN AI. IT IS A RED-HOT IPO MARKET. WE ARE GOING TO CATCH UP WITH EDDIE BEST, THE COACHER OF THE CAPITAL MARKETS PRACTICE OVER AT WILKEY FARR. COMING UP AFTER THE BREAK, RIGHT HERE ON BLOOMBERG. THANK YOU. A MOMENT OF TRUTH FOR THE IPO MARKET TOMORROW, A MOMENT OF TRUTH QUITE FRANKLY FOR THE SECONDARY MARKET. SPACE X EXPECTED TO PRICE AND START TRADING ON FRIDAY. THE FIRM ATTRACTING DEMAND FOR MORE THAN FOUR TIMES THE AVAILABLE SHARES ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER THAT BLOOMBERG REPORTERS HAVE SPOKEN TO. JOINING US HERE IN STUDIO 2 IS EDWARD BEST, CO-CHAIR OF THE CAPITAL MARKETS PRACTICE AT WILKEY FARR AND GALLACHER. YOU KNOW, I DON'T THINK IT'S AN OVERSTATEMENT TO SAY THIS IS GOING TO BE A BIG TEST FOR THE MARKET. A TRILLION-DOLLAR IPO POTENTIALLY FOLLOWED BY MAYBE TWO OTHER TRILLION-DOLLAR IPOs IN THE WEEKS AND MONTHS TO COME. IS THERE A SENSE HERE THAT THE MARKET HAS ENOUGH LIQUIDITY AND MORE IMPORTANTLY ENOUGH APPETITE TO ABSORB IT? [01:08:59] Speaker 14: I THINK SO. REMEMBER, FIRST OF ALL, SPACE X IS SUPPOSED TO PRICE THIS WEEK. AND ANTHROPIC WAS REPORTED TO HAVE CONFIDENTIALLY FILED A COUPLE OF WEEKS AGO, OPEN AI LAST WEEK. SO THEY'RE PROBABLY NOT GOING TO COME OUT UNTIL SEPTEMBER, OCTOBER. SO THAT'S GOING TO GIVE US THE REST OF THE SUMMER FOR THE MARKET TO ABSORB SPACE X. AND, YOU KNOW, THE MARKET IS HUGE. AND AS I WAS TALKING TO SOMEBODY TODAY, EVEN WITH A ONE AND A HALF TO TWO TRILLION DOLLAR MARKET CAP, IT'S ONLY GOING TO BE ABOUT THE SEVENTH OR EIGHTH LARGEST COMPANY IN THE U.S. AND SO IT WILL BE BIG, BUT IT'S NOT GOING TO TAKE UP EVERYTHING. SO I THINK THERE'S GOING TO BE PLENTY OF LIQUIDITY IN THE MARKET. I THINK PEOPLE ARE GOING TO BE VERY EXCITED ABOUT THOSE AS WELL. AND SOME PEOPLE MAY BE HOLDING ON TO SOME OF THEIR CASH WAITING FOR THE OTHER TWO AS WELL. [01:09:39] Romaine Bostick: I AM CURIOUS ABOUT JUST THE WAY THAT THIS WAS PITCHED. I MEAN, OBVIOUSLY, WE DON'T KNOW EXACTLY, JUST BASED ON REPORTING. BUT WE'VE HEARD A LOT OF WHAT'S BEEN GOING ON IN THE ROAD SHOW, THE IDEA OF THIS COMPANY KIND OF PITCHING A CLEANER BALANCE SHEET THAN MAYBE WHAT SOME PEOPLE THOUGHT. AND MORE IMPORTANTLY, THIS SORT OF ADDRESSABLE MARKET. AND I AM CURIOUS THAT WHEN YOU HAVE A COMPANY THAT, LET'S JUST FACE IT, IT'S PROBABLY A LITTLE BIT HARD TO VALUE. HOW DO YOU VALUE THAT AS A SECONDARY MARKET INVESTOR COMING INTO THIS? [01:10:05] Speaker 14: THAT'S A GREAT QUESTION AND THERE ARE LOTS OF INSTITUTIONAL INVESTORS OUT THERE RIGHT NOW TRYING TO FIGURE THAT OUT. ALSO REMEMBER THAT IT'S GOT THREE DIFFERENT BUSINESSES IN IT. SO YOU'VE GOT THE SPACE BUSINESS, YOU'VE GOT THE STARLINK BUSINESS AND YOU'VE GOT THE XAI BUSINESS. AND EACH OF THOSE HAVE THEIR DIFFERENT FUNDAMENTALS. SO PUT THEM ALL TOGETHER AND IT JUST MAKES IT THAT MUCH HARDER TO VALUE. AND THEN THERE'S ALSO THE ISSUE OF COMPTS. AND YOU DON'T HAVE ANYBODY THAT'S A TRUE COMP TO THIS COMPANY. SO IT'S GOING TO BE VERY DIFFICULT. AND YOU DON'T REALLY LOOK AT A COMPANY FOR ITS PAST PERFORMANCE. YOU LOOK AT WHAT YOU EXPECT THE PERFORMANCE TO BE. AND SO A LOT OF THIS IS WHERE WE THINK IT'S GOING TO GO. [01:10:38] Romaine Bostick: DOES THE LACK OF COMPTS TO THAT TO A CERTAIN EXTENT WORK TO SPACEX'S ADVANTAGE? BECAUSE AT LEAST THEY CAN THROW OUT ANY NUMBER OUT THERE. OH, WE'VE GOT A TOTAL ADDRESSFUL MARKET OF A GAZILLION DOLLARS. I MEAN, HOW DO I KNOW? [01:10:47] Speaker 14: YOU'RE ABSOLUTELY RIGHT. NOW, THEY CAN'T JUST THROW ANY NUMBER OUT BECAUSE OBVIOUSLY THIS WENT THROUGH THE SEC. THEY LOOKED AT IT. THE SEC DOESN'T DO DUE DILIGENCE BUT THEY DO LOOK AT IT AND ASK QUESTIONS. SO THE LAWYERS THAT ARE INVOLVED, THE BANKERS ARE GOING TO MAKE SURE THAT THERE IS A REASON. THERE IS REASONABLE BACKUP FOR ALL OF THE STATEMENTS THEY MADE. BUT YOU'RE ABSOLUTELY RIGHT THAT IT'S A TOUGH THING TO BE ABLE TO SAY IT'S A TRILLION-DOLLAR MARKET. IT'S A $10 TRILLION-DOLLAR MARKET. [01:11:16] Katie Griefeld: IT'S A $50 TRILLION-DOLLAR MARKET. NOBODY REALLY KNOWS. THERE ARE A LOT OF CENTERS IN SPACE, CERTAINLY UNCHARTED TERRITORY HERE. I WANT TO TALK MORE ABOUT THE ROADSHOW BECAUSE YOU POINT OUT IN YOUR NOTES THAT THE ROADSHOW ONLY BEGAN LAST THURSDAY. IT'S ENDING TONIGHT HERE. SO IT'S A PRETTY QUICK WINDOW HERE. I WONDER, IS THAT A TREND THAT WE'RE SEEING OR IS THAT SOMETHING THAT SHORT ROADSHOW, SOMETHING THAT'S UNIED TO SPACEX? [01:11:40] Speaker 14: IT'S CERTAINLY SHORTER THAN A TYPICAL ROADSHOW FOR AN IPO. NOW REMEMBER THAT IN THE LAST COUPLE OF YEARS THE SEC HAS BLESSED A PROCEDURE CALLED TESTING THE WATER. SO BEFORE THEY EVEN HAD THEIR PUBLIC FILING, THEY WENT OUT AND DID A ROADSHOW WITH INSTITUTIONAL INVESTORS. SO THEY DID AN AWFUL LOT OF THE MARKETING BEFORE THIS EVEN BECAME PUBLIC. AND SO THEY HAD A PRETTY GOOD SENSE OF WHAT WAS GOING ON. SO THEY'VE REALLY MET MOST OF THOSE INVESTORS. SO THIS IS NOW JUST PICKING UP SOME OF THOSE OTHER INVESTORS, BEING ABLE TO ANSWER MORE OF THOSE QUESTIONS AND CERTAINLY HELPING WITH THE RETAIL NOW. SO I DON'T THINK YOU'RE GOING TO SEE A LOT OF COMPANIES DOING THIS. BUT CERTAINLY IT HAS GOTTEN SHORTER WITH THE NEW TESTING THE [01:12:16] Katie Griefeld: WATERS PROCEDURE. AND I DO ALSO WANT TO TALK A LITTLE BIT MORE ABOUT OPEN AI BECAUSE WE GOT THEIR FILING ACTUALLY JUST IN THE LAST COUPLE OF DAYS. I THOUGHT IT WAS LAST WEEK BECAUSE TIME IS FAKE AT THIS POINT. BUT IT WAS INTERESTING TO HEAR FROM THE COMPANY SAYING THAT WE HAVE NOT DECIDED ON TIMING YET. IT MAY BE A WHILE BECAUSE THERE ARE THINGS WE WANT TO DO THAT ARE LIKELY EASIER AS A PRIVATE COMPANY. BUT BASICALLY THEY LOOK AT THE TRADE-OFFS AND NOW THEY HAVE THE OPTION TO GO PUBLIC SOONER IF THAT ENDS UP BEING THE BEST COURSE FOR THEM. I THOUGHT THAT WAS REALLY INTERESTING, SURPRISINGLY CANDID. I WONDER WHAT YOU MAKE OF IT, THE FACT THAT PRIVATE FOREVER WAS SORT OF THE MANTRA FOR A COUPLE OF YEARS HERE. BUT NOW YOU HAVE COMPANIES BASICALLY AT LEAST WANTING TO GIVE THEMSELVES THE OPTION THAT THEY COULD GO PUBLIC IF THEY NEED TO. [01:13:03] Speaker 14: I THINK THAT IT'S IN THIS ENVIRONMENT WHEN YOU SEE THE EXPECTED CAPEX FOR SOME OF THESE COMPANIES, THERE'S SOME ESTIMATES BETWEEN OPEN AI AND ANTHROPIC AND THEN CERTAINLY SOME OF THE OTHER HYPERSCALERS THAT WE'RE TALKING ABOUT OVER A TRILLION DOLLARS OVER THE NEXT FEW YEARS. THAT'S A MASSIVE AMOUNT OF MONEY. EVEN THOUGH THE PRIVATE MARKETS ARE REALLY HUGE, THEY'RE GOING TO HAVE TO TAP THE PUBLIC MARKETS AT SOME POINT. IF SPACEX COMES OUT WELL AND ANTHROPIC COMES OUT WELL, OPEN AI MAY VERY WELL SAY THIS IS A GREAT TIME. I DON'T KNOW WHAT SIX MONTHS FROM NOW IS GOING TO BE OR A YEAR OR TWO YEARS. IF I'VE GOT A HOT MARKET, I'LL BETTER GET OUT THERE SO I AT LEAST HAVE THE OPTION TO DO FUTURE FINANCINGS IN THE PUBLIC MARKET. [01:13:41] Romaine Bostick: I CERTAINLY UNDERSTAND IT FROM THE COMPANY'S PERSPECTIVE AS TO WHY THEY WANT TO TAKE ADVANTAGE OF THIS AND YOU SEE THAT ALL THE TIME. I AM CURIOUS PARTICULARLY ABOUT ON THE DEBT SIDE. AND ORACLE TODAY IN THE EARNINGS KIND OF TALKED ABOUT AT LEAST FOR 2026, WE'RE DONE. WHO KNOWS WHAT 2027 HOLDS. BUT IS THERE ANY CONCERN HERE ABOUT HOW THAT GETS STRUCTURED? BECAUSE SOME OF THESE ARE OFF BALANCE SHEETS. SOME OF THESE ARE PROJECT FINANCING. THERE'S -- WE CAN TALK ABOUT THIS ISSUE OF COMPTS. SOME OF THIS IS BEING THESE DEBT SALES MEANING THERE BEING STRUCTURED IN A WAY THAT IT'S HARD TO REALLY KNOW THE HEALTH OF WHAT'S BACKING AND MORE IMPORTANTLY THE DURATION OF WHAT'S BACKING THAT DEBT. [01:14:15] Speaker 14: SO MOST OF THE DEBT THAT WAS RAISED BY FOLKS, WE TALKED ABOUT THE HYPER SCALERS, APPLE AND AMAZON AND MICROSOFT, MOST OF THOSE HAVE BEEN IN THE PUBLIC DEBT MARKETS AND THOSE HAVE BEEN SENIOR UNSECURED. THEY'RE INVESTMENT GRADE RATED. SO THAT WE KNOW AND IT'S A HUGE AMOUNT OF MONEY AND IT'S SOMEWHAT UNPRECEDENTED, THE AMOUNT THAT THEY'VE RAISED. THERE HAVE BEEN OTHER KINDS OF FINANCING, BUT I THINK THOSE ARE MUCH SMALLER. AND SO FROM THAT STANDPOINT, THEIR INVESTMENT GRADE, THE MARKET IS LOOKING AT THESE AS A LITTLE BIT LONGER DURATION. THAT'S REALLY NICE. THE OTHER THING THAT WE'VE SEEN MORE RECENTLY IS ALSO THIS YEAR THEY'VE DONE FINANCINGS IN EUROES, IN SWISS FRANKS. THE LAST TWO DEALS THAT WERE DONE UP IN CANADA WERE THE LARGEST EVER DONE. I DON'T THINK THEY'RE SPENDING THE MONEY IN CANADA. I THINK THEY'RE GOING TO PROBABLY SWAP IT BACK TO DOLLARS. BUT THEY'RE LOOKING AT ALL THE DIFFERENT MARKETS. I WOULDN'T BE SURPRISED IF THEY'RE GOING TO GO DO THE MARKETS IN ASIA. I JOKE IF SPACEX DOES REALLY WELL, MAYBE WE'RE GOING TO START SEEING LITTLE GREEN MARTIAN, LITTLE GREEN BONDS, LITTLE GREEN MAN BONDS. THEY'LL START SELLING BONDS ON MARS BECAUSE AT SOME POINT THEY'RE GOING TO NEED ANOTHER MARKET. BUT THEY'RE LOOKING AT ALL THE DIFFERENT MARKETS BECAUSE THERE'S JUST SUCH A HUGE NEED FOR ALL OF THIS CAPITAL. [01:15:21] Katie Griefeld: AND REALLY QUICKLY, YOU MENTIONED IF SPACEX DOES WELL, WHAT IF IT DOESN'T DO WELL? DOES THAT HAVE ANY EFFECT ON THE PIPELINE, A CHILLING EFFECT AT ALL? [01:15:29] Speaker 14: A LOT OF IT'S GOING TO DEPEND ON WHY. IF IT'S UNIQUE TO SPACEX, IF IT'S THEIR BUSINESS, THEN I DON'T THINK IT WILL. IF IT'S NOT DOING WELL IN THE OVERALL MARKET'S NOT DOING WELL OR IF IT DRAGS DOWN THE MARKET, THEN, YES, IT COULD AFFECT AN ANTHROPIC OR AN OPEN A COMING OUT. BUT, AGAIN, THERE'S SO MUCH EXCITEMENT AROUND THIS. I DON'T KNOW HOW LONG THAT EXCITEMENT IS GOING TO LAST, BUT I THINK THE EXCITEMENT IS GOING TO BOWIE THE STOCK FOR AT LEAST SOME PERIOD OF TIME. [01:15:54] Katie Griefeld: NOT MUCH LONGER TO WAIT. [01:15:55] Romaine Bostick: I JUST LOVE THE FACT THAT IF WE FINALLY DO MAKE CONTACT WITH INTELLIGENT LIFE ON OTHER PLANET, THE FIRST THING WE WILL ACTUALLY DO TO THEM IS TRY TO SELL THEM DEBT. [01:16:04] Katie Griefeld: AND THEN ASK IF WE CAN BUILD A DATA CENTER ON THEIR PLANET. [01:16:08] Speaker 14: WE WILL KNOW HOW INTELLIGENT THEIR LIFE IS AND WHETHER OR [01:16:10] Katie Griefeld: NOT THEY BUY THE BONDS. THERE YOU GO. EDDIE, ALWAYS FANTASTIC TO CHECK IN WITH YOU. THAT IS EDDIE BEST. HE IS CO-CHAIR OF THE CAPITAL MARKETS PRACTICE. THIS IS THE CLOSE ON BLOOMBERG. THIS IS THE CLOSE ON BLOOMBERG. WE ARE LESS THAN 24 HOURS AWAY FROM THE FIRST GAME OF THE 2026 FIFA WORLD CUP. GLOBAL CITIZEN PRODUCING THE FIRST EVER HALFTIME SHOW FOR THE TOURNAMENT FEATURING MADONNA, BTS, AND SHAKIRA. CURATED BY CHRIS MARTIN OF COLD PLAY. I'M THRILLED TO SAY THAT JOINING US LIVE IS HUGH EVANS. HE IS THE CEO OF GLOBAL CITIZEN. HUGH, GREAT TO SEE YOU. [01:17:02] Speaker 15: GREAT TO SEE YOU, KATIE. [01:17:04] Katie Griefeld: LESS THAN 24 HOURS AWAY FROM KICKOFF. A LITTLE BIT MORE THAN A MONTH AGO UNTIL, OF COURSE, THAT BIG HALFTIME SHOW. HOW IS PLANNING GOING? [01:17:13] Speaker 15: PLANNING HAS BEEN GREAT. WHEN YOU ARE WORKING WITH THE LIKES OF CHRIS MARTIN OF COLD PLAY, WHO IN MY VIEW IS A CREATIVE GENIUS TO PRODUCE THE FIRST EVER HALFTIME SHOW FOR THE WORLD CUP FINAL. AND IT'S POISED TO BE THE MOST VIEWED HALFTIME EVENT IN ALL OF HISTORY. 13 SUPER BOWLS IN ONE NIGHT, BRINGING TOGETHER THE ENTIRE PLANET. THE PRESSURE IS ON, BUT THE TEAM IS RISING TO THE CHALLENGE. [01:17:35] Katie Griefeld: WELL, TALK TO US A LITTLE BIT ABOUT HOW THIS CAME TOGETHER. YOU KNOW, WHERE THE IDEA OF THE FIRST EVER HALFTIME SHOW FOR THE WORLD CUP, HOW THAT CAME ABOUT AND HOW YOU ARE TURNING IT INTO REALITY. [01:17:47] Speaker 15: SO FOUR YEARS AGO AT THE TIME OF THE QUATAR WORLD CUP, CHRIS MARTIN CALLED ME AND HE SAW IT AND HE SAID, WOULDN'T IT BE AMAZING IF WE COULD DO A HALFTIME SHOW FOR THE WORLD CUP? BECAUSE IT IS THIS MOMENT THAT BRINGS ALL OF HUMANITY TOGETHER. A FEW YEARS AGO, I HAD THE HONOR OF MEETING GIANNI INFANTINO IN SWITZERLAND. WE SAT DOWN AND HE SHARED THIS VISION. HE WAS SO PASSIONATE ABOUT IT. AS THE PRESIDENT OF FIFA, HE SAID HE WANTS THIS TO BE PART OF HIS LEGACY. HE SAID TO ME AT THE TIME, I WANT MY PRESIDENCY TO BE KNOWN FOR MAKING A DIFFERENCE. SO TOGETHER, WE ESTABLISHED THE FIFA GLOBAL CITIZEN EDUCATION FUND WITH THE GOAL OF RAISING $100 MILLION FOR CHILDREN'S EDUCATION BY THE TIME OF THE WORLD CUP FINAL. I'M PLEASED TO TELL YOU THAT AS OF YESTERDAY, WE'VE RAISED THE FIRST $50 MILLION. WE'VE ALREADY STARTED TO GIVE AWAY GRASSROOTS GRANTS TO EDUCATION PROJECTS ALL OVER THE WORLD, INCLUDING HERE IN NEW YORK CITY. THIS IS WHERE THIS IDEA FOR THE HALFTIME CAME ABOUT. WE SAID IF WE COULD UNITE ALL OF HUMANITY DURING THAT MOMENT, THIS WOULD BE TRULY SPECIAL. [01:18:44] Romaine Bostick: THIS IS PROBABLY ONE OF THE TRUE GLOBAL EVENTS. IT LIVES UP TO ITS NAME. IT IS ALSO, AT LEAST IF YOU WANT TO BE INSIDE THE STADIUM, FOR A LOT OF PEOPLE, INACCESSIBLE BECAUSE OF THE COST, THE MOST EXPENSIVE WORLD CUP EVER. I KNOW THERE IS, IN COORDINATION WITH NEW YORK CITY, GOING TO BE A WATCH PARTY IN CENTRAL PARK THAT PRESUMABLY JUST EVERYDAY FOLKS CAN ACTUALLY BE ABLE TO SIT AND WATCH THIS AND ENJOY IN IT AS WELL. [01:19:07] Speaker 15: ABSOLUTELY. EARLIER THIS WEEK, TOGETHER WITH MAYOR MENDAMI AND GOVERNOR HOCUL AND GIANNI INFANTINO, WE ANNOUNCED THAT GLOBAL CITIZEN IS PRODUCING THE BIGGEST WATCH PARTY FOR THE BIGGEST EVENT. THIS IS GOING TO BE 50,000 PEOPLE INVITED TO THE GREAT LAWN OF CENTRAL PARK. THE BEST THING ABOUT IT, IT IS ENTIRELY FREE. STARTING TOMORROW MORNING, YOU CAN GO ON TO GLOBALCITIZEN. ORG FORWARD SLASH WATCH PARTY AND YOU CAN REGISTER. IF YOU ARE COMING IN FOR THE WORLD CUP FINAL ON JULY 19, YOU CAN BE PART OF THIS VERY SPECIAL MOMENT. NEW YORKERS AND PEOPLE ALL AROUND THE WORLD CAN BE PART OF IT. [01:19:42] Romaine Bostick: AND YOU ARE NO STRANGER TO THROWING BIG EVENTS IN CENTRAL PARK AS YOU HAVE THE GLOBAL CITIZEN FESTIVAL THERE EVERY YEAR. WE SHOULD POINT OUT, SOME OF THE PROCEEDS FROM ALL THIS, THEY ARE GOING TO CHARITY. ABSOLUTELY. [01:19:53] Speaker 15: ALL OF THE PROCEEDS THAT WE ARE THROUGH OUR PARTNERSHIP WITH FIFA ARE GOING -- IN FACT, A DOLLAR FROM THE ENTIRE WORLD CUP IS GOING TO THE FIFA GLOBAL CITIZEN EDUCATION FUND. EVERY TICKET SOLD MAKES AN IMPACT. [01:20:07] Katie Griefeld: AS I MENTIONED, JUST OVER A MONTH AGO UNTIL THIS EVENT SPECIFICALLY HAPPENS, THAT IS ON JULY 19. WHAT DOES THE NEXT MONTH PLUS LOOK LIKE FOR YOU? YOU ARE NO STRANGER TO CENTRAL PARK AND THROWING TOGETHER THESE BIG EVENTS. HOW ARE YOU PLANNING ON PREPARING FOR THIS ONE IN PARTICULAR? [01:20:24] Speaker 15: WE STILL HAVE A COUPLE OF BIG ANNOUNCEMENTS COMING UP OVER THE NEXT FEW WEEKS, BUT OUR TEAM IS FULLY IN PRODUCTION, WORKING ON THE PREPARATION FOR CENTRAL PARK. WE WANT TO MAKE THIS THE MOST AMAZING, IMMERSIVE EXPERIENCE FOR PEOPLE WHO WANT TO WATCH THE WORLD CUP FINAL WITH GIANT LED SCREENS, MUSIC, SOUND, THE OPPORTUNITY FOR PEOPLE TO PARTICIPATE. BUT THEN ON THE PRODUCING OF THE HALFTIME SHOW, WE HAVE THE BEST PRODUCERS IN THE WORLD WORKING ON THIS. WE'VE GOT HAMISH HAMILTON WHO'S CALLED MORE OLYMPICS OPENING CEREMONIES THAN ANYONE. BEN WINSTON WHO'S CALLED, YOU KNOW, TRULY GUY CARRINGTON. THE BEST PRODUCERS ARE ALL UNITED BEHIND THIS VISION. AND IT'S ALL GOING TO COME DOWN TO JULY 19 WHERE THIS SPECIAL MOMENT THAT, IN CHRIS MARTIN'S VIEW, HE WANTS PEOPLE TO LOOK DOWN FROM -- YOU TALKED ABOUT, YOU KNOW, ALIENS EARLIER IN THIS SEGMENT. WE DID. HE WANTS ALIENS TO BE ABLE TO LOOK DOWN AND SAY THIS IS THE BEST OF HUMANITY, UNITED AS ONE. WOW. [01:21:18] Katie Griefeld: THAT'S WHAT WE REALLY WANT TO KNOW. [01:21:20] Speaker 15: EXACTLY. [01:21:21] Katie Griefeld: AND DO THEY WANT TO INVEST IN A DATA CENTER? BUT I DO WANT TO TALK A LITTLE BIT MORE ABOUT CHRIS MARTIN BECAUSE THIS IS CURATED BY CHRIS MARTIN, THE MIND OF CHRIS MARTIN. WHAT DOES THAT MEAN? IS HE GOING TO BE PERFORMING OR IS HE JUST SORT OF THE MAN BEHIND THE MACHINE HERE? [01:21:38] Speaker 15: SO HE'S BEEN WORKING INCREDIBLY HARD. HE ACTUALLY REACHED OUT TO BTS. HE REACHED OUT TO MADONNA. HE SPOKE WITH SHAKIRA. AND THEY WORKED ON THE CREATIVE VISION FOR THE ENTIRE HALFTIME SHOW TOGETHER. AND SO HE'S BEEN IN THE STUDIO. I'VE BEEN SO IN OR OF THE AMOUNT OF ENERGY AND EFFORT THAT CHRIS HAS THROWN BEHIND THIS. EVERY TURN HE SAID THIS IS A PROJECT THAT HE BELIEVES IN. HE WANTS TO MAKE A CONTRIBUTION TO HUMANITY. AND THE FACT THAT WE'VE ALREADY RAISED $50 MILLION FOR KIDS EDUCATION AROUND THE WORLD IN JUST A FEW WEEKS IS A TESTIMONY TO HOW MUCH LOVE HE'S THROWING INTO IT. SO, I MEAN, YOU'RE IN FOR SOME BIG SURPRISES. THIS IS GOING TO BE AN AMAZING, AMAZING HALFTIME SHOW. WE, YOU KNOW, AT A TIME WHEN THERE'S SO MUCH GOING ON IN THE WORLD, WE WANT TO TRANSCEND THAT AND GIVE PEOPLE THE OPPORTUNITY TO REALIZE THAT WE'RE ALL HUMAN BEINGS. WE'RE ALL IN THIS TOGETHER. AND THIS IS A MOMENT WHERE THE WHOLE WORLD CAN UNITE. [01:22:30] Romaine Bostick: WISH YOU THE BEST OF LUCK THERE, HUW. THANK YOU VERY MUCH. HUW EVANS, THE CEO OF GLOBAL CITIZEN, AS WE STICK WITH OUR COVERAGE HERE OF THE WORLD CUP, WHICH IS OFFICIALLY SET TO KICK OFF JUST ABOUT, I THINK, 22 HOURS FROM NOW, KATIE GRIEFELD. I THINK WE'RE GOING TO HEAR FROM MEXICO AND SOUTH AFRICA, THE FIRST BIG MATCH THERE. IT'S A HUGE WEEK, OF COURSE, FOR PREDICTION MARKETS AS WELL. ROBIN HOOD GOING LIVE WITH A PREDICTION MARKET FEATURE THAT ALLOWS USERS TO SEE THE BETS BEING PLACED WITHOUT ACTUALLY LOGGING IN. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. [01:23:16] Speaker 16: WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE'RE GOING TO RECOVER AROUND THE WORLD CUP. WE EXPECT DEMAND TO BE INCREDIBLY STRONG. WE SEE THAT NOT ONLY PEOPLE HERE IN THE UNITED STATES ARE LOOKING AT THE DIFFERENT TYPES OF WAYS THEY CAN INVEST IN THE GAMES, BUT ALSO YOU HAVE 40 EXTRA GAMES THAT ARE OCCURRING AT THE SAME TIME HERE IN NORTH AMERICA. IT'S GOING TO RECOVER AROUND THE WORLD CUP. [01:23:50] Romaine Bostick: WE'RE GOING TO RECOVER AROUND THE WORLD CUP. I THINK IT'S GOING TO BE A VERY EXCITING TIME. I AM CURIOUS. [01:23:57] Speaker 16: THEY CAN OBVIOUSLY MAKE A BET ON THE ACTUAL MATCH ITSELF. CAN THEY MAKE A BET ON WHETHER CHRIS MARTIN IS GOING TO PERFORM AS WELL? [01:24:03] Katie Griefeld: NOT THAT I'M AWARE OF. THAT WOULD BE A HECK OF ONE. I WOULD LIKE TO CHECK THAT ONE OFF THE LIST. THANK YOU. IF YOU WANT TO GET OUT THE WORLD, IF YOU ARE GOING TO GET OUT THE WORLD, YOU HAVE SEEN THEM ORCHESTRATE A NUMBER OF VIRAL MOMENTS AROUND THE NICKS IN PARTICULAR. I WONDER HOW YOU SORT OF GET OUT THE WORD ABOUT ROBINHOOD PREDICTION MARKETS AND COMPETE THERE, COMPETE FOR MIND SHARE [01:24:30] Speaker 16: WHEN IT COMES TO A LOT OF THESE HOT SPORTING EVENTS RIGHT NOW. WE HAVE 27 MILLION-PLUS CUSTOMERS ALREADY IN OUR ECOSYSTEM. WHAT WE'RE TRYING TO DO IS FIND THE RIGHT PRODUCT THEY WANT TO PUT THEM IN THE FUTURE, MAYBE AN EQUITY, MAYBE AN OPTION, MAYBE PREDICTION MARKETS. WHAT WE'RE TRYING TO DO IS PROVIDE THEM CHOICE. IN DOING SO, WHAT WE DO IS WANT TO GIVE THEM THE BEST POSSIBLE PRODUCT THAT'S AVAILABLE, REALLY CLEAR UNDERSTANDINGS OF HOW THEY ACTUALLY CAN TRADE IT, AND THEN MOST IMPORTANTLY, GREAT PRICING. THAT'S WHAT WE'VE REALLY BEEN PUSHING ON. WE ALTERED OUR PRICING FOR OUR CUSTOMERS, MAKING IT LOWER SO IT'S COMPETITIVE. OUR GOLD PRODUCT IS AMONGST THE LOWEST IN THE WHOLE ENTIRE INDUSTRY. THE BEST POSSIBLE PRODUCTS ARE GETTING THE BEST POSSIBLE PRODUCT AND THE BEST LIQUIDITY THAT'S IN THE MARKETPLACE. [01:25:15] Romaine Bostick: WE SAID IN THE INTRO THAT YOU CAN DO THIS WITHOUT LOGGING ON. WHAT'S THE IDEA? IS THIS CLIENT CONVERSION? [01:25:22] Speaker 16: WHAT ARE YOU TRYING TO DO WITH THAT? YOU CAN'T TRADE WITHOUT LOGGING ON, BUT YOU CAN SEE THE PRICES AND LOOK AT WHERE THE MARKET IS GOING. REALLY, IF YOU THINK ABOUT IT, IT'S AN OPPORTUNITY FOR PEOPLE TO TAKE AN INVESTIGATION. WHAT WE FIND IS A LOT OF INVESTORS WANT TO LOOK AND SEE AND GET AN UNDERSTANDING OF HOW THAT MARKET TRADES, FEELS, AND [01:25:39] Romaine Bostick: THEN MAKE A DECISION IF THEY WANT TO MOVE FORWARD. WHAT I'M GETTING AT IS THIS IDEA THAT BY HAVING A LITTLE BIT MORE PUBLIC FACE OF THIS, PRESUMABLY SOMEBODY WHO LOGS ON, WHO CHECKS THAT -- WHO IS NOT A ROBIN HOOD CLIENT, MAYBE I WOULD ASSUME YOU WANT THEM TO [01:25:51] Speaker 16: BECOME A ROBIN HOOD CLIENT? [01:25:53] Katie Griefeld: I WOULD LIKE TO HAVE EVERYBODY COME A ROBIN HOOD CLIENT. THAT GETS AT WHAT I WAS WONDERING ABOUT. YOU MENTIONED THAT WHEN IT COMES TO YOUR PREDICTION MARKETS, YOU ALREADY HAVE A BUILT-IN CUSTOMER BASE THERE FOR ROBIN HOOD PROPER. WHEN IT COMES TO PREDICTION MARKETS, WHAT ARE YOU SEEING THERE? IS IT MOSTLY FOLKS WHO ARE ALREADY ASSOCIATED WITH ROBIN HOOD, WHO HAVE ROBIN HOOD ACCOUNTS FOR MORE TRADITIONAL ASSET CLASSES, OR ARE YOU EXPANDING THE BUY HERE AND BRINGING IN NEW CLIENTS? [01:26:17] Speaker 16: IT'S ACTUALLY A NICE COMBINATION. WHAT WE'RE FINDING IS NEW CUSTOMERS THAT WANT TO COME TO THE MARKETPLACE ARE ABLE TO DO SO BECAUSE PREDICTION MARKETS IS SOMETHING THEY ARE INTERESTED ABOUT AND THEY KNOW THAT ROBIN HOOD IS GOING TO GIVE THEM A GREAT TECHNOLOGY EXPERIENCE AS WELL AS GREAT PRICING. BUT CUSTOMERS ALREADY IN THE ECOSYSTEM ARE NOW USING IT. IN MANY CASES THEY USE IT FOR PRICE DISCOVERY OR UNDERSTANDING SOMETHING OUTSIDE OF SPORTS. ONE OF THE MOST HIGHLY TRADIED PRODUCTS FROM A VOLUME STANDPOINT IS THE 15 MINUTE BITCOIN PRICE CONTRACT. AND WHAT WE'RE SEEING IS PEOPLE WHO ACTUALLY ARE INTERESTED IN PARTICIPATING BUT MAYBE AREN'T SURE IF THEY WANT TO GO AND BUY A BITCOIN OR NOT, THEY CAN ACTUALLY TRADE ON THE PRICE BECAUSE THEY HAVE AN OPINION. IF THEIR OPINION IS GOING TO GO UP OR GO DOWN, PREDICTION MARKETS GIVES YOU THAT CAPABILITY TO GO DO SO. SAME THING WITH ELECTIONS. OBVIOUSLY WE HAVE HAD A LOT OF ELECTION COVERAGE. TAKE THE LOS ANGELES MAYORAL EVENT. YOU'VE HAD A LOT OF PEOPLE WHO CAME IN AND STARTED LOOKING AT THOSE PRODUCTS AND SAID, HEY, THIS IS SOMETHING THAT'S INTERESTING TO ME. THEY MAY OR MAY NOT TRADE IT, BUT THEN THEY'LL REALIZE THE ECOSYSTEM IS MUCH LARGER THAN JUST, YOU KNOW, SPORTS AND POLITICS. [01:27:12] Romaine Bostick: I DO HAVE TO ASK YOU, THOUGH, WE HAD HEADLINES EARLIER TODAY THAT THE CFTC WAS LOOKING TO MAYBE PROVIDE SOME MORE GUARD RAILS, PARTICULARLY WHEN IT COMES TO PREDICTION MARKET BETS ON WAR AND ELECTIONS. IS THAT SOMETHING THAT YOU GUYS HAVE TALKED ABOUT INTERNALLY, HOW YOU MIGHT MANAGE THAT, PARTICULARLY GIVEN THAT WE ARE A, IN THE MIDDLE OF A WAR AND B, IN THE MIDDLE OF AN ELECTION SEASON? [01:27:31] Speaker 16: FIRST OF ALL, THAT RULE HAS ALREADY BEEN IN PLACE. I THINK WHAT THE CFTC IS REALLY TRYING TO DO IS ADD CLARITY AS TO WHAT DOES THAT MEAN. SOMETIMES THERE ARE SOME FRINGE EXAMPLES THAT HAVE OCCURRED WITH OTHER EXCHANGES THAT HAVE CAUSED ISSUES, QUESTIONS OF INSIDER TRADING OR MARKET MANIPULATION. WHAT DOES THAT MEAN? WE ARE HELD AT A HIGHER STANDARD. WE ARE WHAT IS CALLED A FUTURES COMMISSION MERCHANT. WHAT THAT MEANS IS WE HAVE TO KNOW THE OCCUPATION OF THAT TRADER WHEN THEY OPEN UP, SO WE KNOW WHERE YOU ARE. IF YOU ARE PART OF THE DEPARTMENT OF DEFENSE, WE WILL FLAG YOU BEFORE YOU CAN PLACE THAT TRADE. I THINK WHAT THE CFTC IS DOING IS TRYING TO BUILD [01:28:05] Romaine Bostick: BETTER RULES THAT WE CAN UTILIZE AND MAKE A BETTER MARKETPLACE FOR. WE HEARD FROM KALISH SAYING THEY MIGHT START TO VERIFY THE JOBS OF THE PEOPLE FOR CERTAIN TYPES OF [01:28:13] Speaker 16: DEPARTMENT OF DEPARTMENT. YOU ARE REQUIRED TO HOLD THAT. WE DO THAT FOR EVERY SINGLE CUSTOMER THAT COMES THROUGH [01:28:22] Romaine Bostick: THE DOOR AND WE ARE REQUIRED TO HOLD THAT. THAT SHOULD BE THE BAR THAT EVERY SINGLE EXCHANGE AND EVERY SINGLE PREDICTION MARKET IS HELD TO. J.B., HAVE TO LEAVE IT THERE. I APPRECIATE IT. YOU KNOW THERE IS A KNICKS GAME TONIGHT. [01:28:39] Katie Griefeld: I KEEP HEARING ABOUT THAT. IS MIKE TAKING YOU THIS TIME? [01:28:43] Romaine Bostick: I DON'T THINK SO. IT LOOKS LIKE A DANGEROUS PLACE TO BE. YOU NEVER KNOW WHEN SOME SEVEN-FOOT GUY WILL FALL INTO YOUR LAP. WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. [01:29:01] Katie Griefeld: WE ARE GOING TO GET TO GET A LAP. WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. [01:29:09] Romaine Bostick: WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. WE ARE GOING TO GET A LAP. WE ARE EXPECTED TO GET PRICING ON THE LARGEST IPO IN [01:29:19] Katie Griefeld: HISTORY. I THINK THAT IS THE EVENT THAT MOST FOLKS ARE GOING TO BE KEEPING THEIR EYEBALLS PEEL FOR. THAT PRICING FOR SPACEX AHEAD OF THE FIRST TRADE THAT WE WILL GET ON FRIDAY. WE ALSO GET THE FIFA WORLD CUP KICKOFF. WE WILL ALSO KNOW WHAT THE NICKS WERE ABLE TO DELIVER TONIGHT. [01:29:37] Romaine Bostick: ABSOLUTELY. WE WILL SEE HOW NICKS FANS BEHAVE THEMSELVES OVERNIGHT. I'M TALKING TO YOU. [01:29:43] Katie Griefeld: THAT DOES IT FOR US. [01:29:45] Romaine Bostick: BALANCING POWER IS UP NEXT.