September 22, 2025 • 34 mins
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.
Walt Disney Co. said Jimmy Kimmel Live! will return to the air on Tuesday, ending a suspension imposed following controversial remarks the ABC late-night host made about the assassination of Republican activist Charlie Kirk.
“We have spent the last days having thoughtful conversations with Jimmy, and after those conversations, we reached the decision to return the show on Tuesday,” Disney said in a statement.
Kimmel will address the controversy when he returns to the stage, according to people with knowledge of the matter who asked not to be identified. He personally negotiated his return with Disney Chief Executive Officer Bob Iger and Dana Walden, who oversees ABC as co-chair of entertainment at the company.
The network pulled the show on Sept. 17, two days after Kimmel, 57, said conservatives were trying to score political points from the killing.
Today's show features:
- Bloomberg News Senior Editor Chris Palmeri
- Bloomberg News Technology Reporter Alexanda Levine on the latest developments as the US pursues a deal for TikTok
- Barbara Humpton, CEO of Siemens USA, on leveraging AI on factory floors, in power grids, and across critical infrastructure
- Paisley Nardini, Managing Director and Head of Multi-Asset Solutions at Simplify Asset Management, on the markets and investment strategies
See omnystudio.com/listener for privacy information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg business
Week Daily reporting from the magazine that helps global leaders
stay ahead with insight on the people, companies, and trends
shaping today's complex economy. Plus global business finance and tech
(00:23):
news as it happens. The Bloomberg Business Week Daily Podcast
with Carol Masser and Tim Stenebeck on Bloomberg Radio.
Speaker 2 (00:32):
Want to go back to a story that's got a
stock moving, and this has to do with Disney, which
is still down but tim off its worst levels of
the day, but still down about one percent.
Speaker 3 (00:39):
Here the company said Jimmy Kimme Alive will return to
the air on Tuesday, ending a suspension in post following
controversial remarks it's ABC Late Night host made about the
assassination of Republican activist Charlie Kirk. I want to bring
in Bloomberg News Senior Editor Chris Paul Mary he joins
us in our Los Angeles bureau.
Speaker 4 (00:56):
Chris.
Speaker 3 (00:56):
We got a short statement from Disney about this. They
say they were in thoughtful conversation with Jimmy Kimmel. What
do we know about the decision to bring him back
to air.
Speaker 5 (01:06):
Well, we know that there were talks that really began
between the company and Jimmy on Thursday. This was done
at the highest levels, right between Kimmel himself and Disney
CEO Bob Iger, as well as Dana Walden ahead of
the TV division. There. They took a break over the
weekend and they resumed talks today and obviously they came
to this decision that he's coming back.
Speaker 2 (01:27):
Jimmy, we love you, Come back, Jimmy, not a problem.
Say whatever you want or Jimmy way. You gotta think
about what you're saying. I don't know, what do we know.
I mean, obviously these were behind closed doors, and I'm
sure they're being pretty mom about it, But do we
have any inside of exactly kind of where you know,
Disney stood on all of.
Speaker 6 (01:44):
This in terms of bringing him back.
Speaker 2 (01:46):
And you know, at the same time, I've seen some
stories about individuals calling to you know, cancel your you know,
Disney Plus subscriptions.
Speaker 6 (01:54):
And so on and so forth.
Speaker 2 (01:55):
Was there pressure on streaming that maybe, you know, made
Disney take a second look at all of this.
Speaker 6 (02:00):
I don't know. I'm just asking.
Speaker 2 (02:02):
I'm just curious what we know about the context of
this conversations and why this happened.
Speaker 7 (02:06):
Yeah, I mean there was pressure everywhere.
Speaker 5 (02:08):
This you know, began with just folks in local markets
calling their TV stations and saying they were upset about
his comments, whether it's Salt Lake City or Nashville or wherever.
Speaker 7 (02:18):
And that's really what got down in.
Speaker 5 (02:21):
The comments from the FCC chairman about doing something about
this got the station groups next our Sinclair to act.
ABC was very close behind them in announcing.
Speaker 7 (02:31):
You know, putting this on hiatus.
Speaker 5 (02:33):
But ABC did always want Kimmel to come back, and
you know, he's also in a tricky position. Sinclair in particular,
has called for him to apologize and donate money to
the Kirk family. You know, there's every indication that he
was not long in this job. He wanted to do
something else, but he obviously wants to leave on his
(02:54):
own terms and not be forced out in this situation.
So there's a lot we still don't know whether he's
going to apologize when he gets back.
Speaker 7 (03:01):
On the air. You know, how long he'll stay.
Speaker 5 (03:04):
In this job, if Disney's even going to stick with
the late night format.
Speaker 3 (03:08):
So what happens now to the comments that Brendan Carr,
the chairman of the FCC made last week, which you know,
even some in the in his own party, Republican Ted
Cruz for example, had some real concerns with the way
that the FCC chairman was going about this. What happens
now on that side of things, Well, he can sort.
Speaker 7 (03:29):
Of declare victory either way.
Speaker 5 (03:31):
You know, he got the station groups to take kim
aloft the air, even if it's a short while, and
if they come back, he'll probably say it was their decision,
and we are of course reaching out the FCC for comment.
But you know, his words certainly got actions, that's for sure.
Speaker 7 (03:50):
Yeah.
Speaker 2 (03:50):
It just makes me wonder because I feel like the
last week or so we've talked about media in all
its forms, just really being focused on by President Trump,
right coming back from the UK, making those comments about
you know, if a network says something that isn't nice,
(04:10):
you know, maybe their licenses should be looked at. And
I'm paraphrasing, but is the heat off from the White House?
I don't know, Like, what's the.
Speaker 8 (04:21):
What's the feeling.
Speaker 5 (04:22):
I think your paraphrasing was pretty was pretty kind. I
think the President said that he could just take away
their licenses if.
Speaker 7 (04:28):
He didn't like what they were saying about him.
Speaker 5 (04:30):
Yeah, obviously a lot of people will have that problem
with that from you know.
Speaker 7 (04:35):
Constitutional standpoint.
Speaker 5 (04:37):
But this is you know, probably the height of what's
been along running Trump war on the media.
Speaker 7 (04:45):
We said last week there's really been no president.
Speaker 5 (04:48):
Every president has a difficult time of journalists from time
to time, but nobody has made this, has made this
kind of push to the extreme that Trump has suing
them on a regular basis, threatening to take away their
licenses on regular basis.
Speaker 4 (05:01):
Uh.
Speaker 5 (05:01):
And so a large degree seeing them kowtow to these efforts,
and you know, some people saying we're sort of in
a danger of coming into a state run media in
this country. So yeah, a lot of concern on both sides.
Speaker 2 (05:14):
But christ and to be fair, Timmy kimme Olla is
not news, it's entertainment. And I am curious there you
are in La right, We're still so much is done
in the entertainment world. And I wonder, you know, movies, actors, producers, directors,
they're not afraid to kind of be critical of an administration.
(05:35):
I'm not talking about this current one, but this one
or another they're not afraid. And I just wonder, what's
what's being talked about, uh in LA and within the
kind of Hollywood community about what has happened in the
last week, is there is there a tremendous pushback against limitations.
Speaker 8 (05:52):
Yeah.
Speaker 5 (05:53):
We saw public statements for the Screen Actors, the Writers Guild.
We saw protests in front of the studio, the theater
where you Kimmel's shot, we know, you know, we saw
some prominent actors and producers in that come out, you know,
against Disney. You know, we even saw Ted Cruz uh
publican center from Texas say things are going a little
(06:13):
too far.
Speaker 7 (06:14):
So, you know, there's there's definitely been a pushback.
Speaker 5 (06:19):
But at the end of the day, we've also seen
these companies capitulate time and time again. And those are
the people that underwrite these projects, these movies, these TVs.
Speaker 7 (06:27):
Yeah, so you.
Speaker 3 (06:29):
Know, but Chris, that is happening before we let you go.
This also comes at a really challenging time for Late Night.
I mean, Stephen Colbert is on the last year of
his contract. He's he's out after this. The viewership is
not what it was in its heyday. People are watching
their phones instead of watching the screen at home together
every night. By the time people see some of these clips.
(06:50):
They're watching them on social media, They're not seeing them live.
I mean, the business is completely changing. It's completely changed.
Speaker 5 (06:57):
That's right, And it remains to be seen whether all
these shows stick around. Certainly Cole there is going off
the air and not being replaced.
Speaker 7 (07:04):
Whether that's the same for Jimmy Come Alive. We don't
over shore.
Speaker 5 (07:07):
But these are expensive shows, you know, every day, two
hundred people and a staff, very high paid you know, hosts,
and you know, the local station owners would love to
just take this time back.
Speaker 7 (07:16):
They pay.
Speaker 5 (07:16):
Most of the ad revenue, you know, goes to the
to the network, not them. They'd love to be able
to put their own news or other programming in that
time slot.
Speaker 2 (07:25):
You know, there's not a lot of things that are
certain in this world, Chris, But I'm just going to
kind of take a wild guess that the viewership of
Jimmy Kimmel tomorrow night is going to be pretty high.
Speaker 7 (07:35):
Yeah, certainly a highs in a long time for sure.
Speaker 6 (07:38):
All Right, We're going to run. Hey, Chris, thank you
so much, really appreciate it.
Speaker 2 (07:41):
Our Chris, Paul Mary He's Bloomberg new senior editor joining
us there from our La Bureau.
Speaker 4 (07:46):
Stay with us.
Speaker 3 (07:47):
More from Bloomberg Business Week Daily coming up after this.
Speaker 1 (07:54):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
US Live weekday afternoons two to five Eastering. Listen on
Apple Karplay and Android Otto with the Bloomberg Business app,
or watch US Live on YouTube.
Speaker 3 (08:08):
Well, President Trump plants to sign an executive order approving
a deal to sell TikTok's US operations to a majority
of US investors later this week.
Speaker 4 (08:15):
That's according to a White House official.
Speaker 3 (08:17):
Also, the US will not take an equity stake in
a deal for TikTok's US operations. That's according to a
senior White House official. The President on Friday made comments
on TikTok from the Oval Office.
Speaker 9 (08:29):
Well, I have a very very tight control and uh,
let's said, it's an amazing thing that's been created. It
is tremendous value with TikTok. And I'm a little prejudiced
because I frankly did so well on it. You know,
it got me numbers that nobody has ever even heard
it before me. So a lot of people wanted the
(08:49):
young people of this country wanted badly. The parents of
those young people wanted badly, and so we were able
to work out a deal with China, and it's a
very good deal for us.
Speaker 10 (09:00):
I hope it's a good deal for.
Speaker 3 (09:01):
Dead as a president on Friday making comments from the
Oval Office on TikTok. Alexandra Levine is Bloomberg News technology reporter.
She covers TikTok, YouTube and more. She joins us here
in the Bloomberg Interactive Brokers studio. Okay, I think it's
fair to say there's a lot we don't know, but
we're also learning more about what a deal is or
what a deal would look like. The President on Friday
(09:21):
saying we were able to work out a deal with China.
It's a very good deal for us, and I hope
it's a very good deal for them.
Speaker 4 (09:29):
What is the deal?
Speaker 11 (09:31):
So, as you've said, there's a lot that we don't know.
Things are very much in flux. What we do know,
what we've heard from the White House as recently as
this morning, is that there is set to be this
new TikTok venture created in the United States, and that Oracle,
which TikTok has a long standing relationship with, is basically
going to be on point to help secure this new
(09:52):
US TikTok entity, and they will basically be helping TikTok
to retrain its algorithm and also to make sure that
US data of people, all the Americans, you know, the
roughly half the country using TikTok, that all of it
is secured in the United States and is staying here
and is not going to be accessible by Dance employees
in China.
Speaker 3 (10:12):
So is this a different algorithm than Byte Dance's algorithm
that has captured the attention of so many.
Speaker 11 (10:19):
So this is the I would say, like the million
dollar question and the biggest sticking point, and sort of
there's even been squabbling today and I think this will
also continue over this algorithm point. The whole sticking point
that held at the deal for all this time was
the algorithm. This is the secret sauce. It's this technical
black box that is the thing that keeps people hooked
and scrolling and scrolling. Byte Dance and China did not
(10:41):
want to give up any kind of control of the algorithm.
The law required exactly that. And so what I think
we are seeing is the White House really trying to
thread the needle and present the agreement that they have
reached in a way that makes it seem like that
will get everybody comfortable with the level of control that
(11:02):
byte Dance may ultimately have over the algorithm.
Speaker 10 (11:05):
There's talk of licensing the algorithm.
Speaker 11 (11:07):
The idea is that bye Dance would basically make a
copy of it, give that to the United States, and
then the United States would retrain it by you know,
TikTok engineers based in the United States would essentially retrain
it on US user data.
Speaker 6 (11:21):
And I think that this again, it's it's really what
could possibly go wrong.
Speaker 11 (11:24):
It's trying to thread the needle on an intensely enormously
complicated issue. And and I think one fascinating thing that
came out of a conversation that the White House hat
with reporters this morning was that the White House is
very much downplaying the complexity of the algorithm, saying, it's just,
you know, a mathematical it's just this mathematical thing, and
it's not very complex to sort of drill down into
(11:46):
the algorithm and sort of wrap your hands around it.
And I think I think there's some sort of there's
some some sort of missing piece here, and there's still
some some piece of this that we don't quite understand
because the algorithm that they're downplaying as this sort of easy, this,
the sort of piece of this is the very thing
that has basically held up TikTok and miss Limbo for
as long as it has.
Speaker 6 (12:06):
I mean, isn't it net net.
Speaker 2 (12:07):
We're either going to get an algorithm that isn't so
cool and not like the original, or we're going to
have Chinese engineers or something that.
Speaker 6 (12:17):
Actually still are involved.
Speaker 2 (12:19):
And so the concerns about a potential passive American data
which have been some of the concerns, could still happen.
Speaker 6 (12:27):
I don't understand how we're going to make this work.
Speaker 11 (12:29):
Well, look, there was a there was this thing called
Project Texas that that's it was. It was a team
up basically between Oracle and TikTok years ago to try
to solve the national security issues.
Speaker 10 (12:41):
The first time.
Speaker 11 (12:42):
This is back around the time that Trump had tried
to ban TikTok over similar similar nationality concerns drying his
first presidency. Oracle was on deck as you know who,
Trump was saying should should be the one to buy
the app if they can make a sale. That ultimately
all fell through, But Oracle and TikTok basically you know,
this undertaking together called Project Texas. It was a multi
(13:02):
billion dollar project that basically sought Oracle trying to help
TikTok separate and secure US user data so that it
only stayed in the United States. That was basically presented
to the administra, the Biden administration at the time as
a solve for all these national security concerns to make
the whole problem go away, and talks progress until they stalled,
and then they died. And I think a large part
(13:24):
of the reason why they died and why Project Texas,
this Oracle TikTok team up was not good the first
time is because there was no way for there was
no way to be able to verify if there was
any manipulation going on or if there was any data
there was no There were there were questions about how,
you know, if that happened, how would anybody know, how
it would be, how would the average person you know know,
(13:45):
and also how would the government be able to verify that?
But then there were also just like loopholes and shortcomings.
It's an incredibly complex setup. When you've got you know,
the company here, and then you've got ByteDance, which is
based in Beijing, and I think that they're trying now
to thread the needle, and this whole proposal is reminding
a lot of people who have been following this for
years as like it reminds it's reminding everyone of sort
(14:07):
of a Project Texas two point zero. But it's not
clear that it's not clear that it's necessarily going to
solve the problems.
Speaker 6 (14:14):
That it's set out to solve.
Speaker 3 (14:15):
What's what's notable to me about this is that well
TikTok and the US government have been embroiled in this
negotiation for the call you will after you have companies
like YouTube and meta platforms creating these clones or at
least ability to actually watch videos on the platforms in
(14:38):
a very similar way that grabs attention in a very
similar way. It's a long form way of me saying
this just sounds like a win for the American rivals.
Speaker 11 (14:48):
I think that they're watching with bated breath. They're sort
of acting like they're not really paying that close attention.
I was just at a YouTube event last week where
they were saying that this was not really on the radar.
It absolutely is on the radar, But but I think
that if TikTok is able to continue operating in the
US that in some ways will not be a win
for the rivals. I think, you know, in some ways
(15:09):
this limbo has been a really good thing for the rivals.
You definitely at one point saw and influx to other platforms.
You saw the other platforms being able to copy TikTok
and some of the features that TikTok had.
Speaker 4 (15:21):
How special is this algorithm?
Speaker 1 (15:23):
Like?
Speaker 3 (15:23):
How hard is it to actually understand what I like
versus what somebody else likes and just.
Speaker 4 (15:27):
Show us videos that will get.
Speaker 3 (15:31):
Us to keep watching. Doesn't seem that hard? But then again,
here I am a person talking of not creating these algorithms.
Speaker 6 (15:40):
I think that, you know, how special is that special sauce?
Speaker 7 (15:43):
Is it?
Speaker 8 (15:43):
Really?
Speaker 11 (15:44):
I mean, I think that if you ask anyone that
spends time across all these platforms on the platforms, people
will have different preferences, right Like, some people will be more,
you know, more hooked on TikTok, some people will be
more hooked on YouTube. I think though, that the fact
that it has been this black box and it has
built it has been build up to be this thing
that is not for sale and that will never be
turned over, and that will never be you know, China
(16:06):
will never relinquish control. I think it has added to
the sort of mystique and it is also reinforced or
like crystallized for some in Washington. Exactly what the concerns
with the algorithm are in the first place, So the
main national security concerns, which I feel like get kind
of like buried in all of this.
Speaker 4 (16:21):
Number one exactly, there's.
Speaker 11 (16:24):
The concern Number one that maybe Bye Dance and by translation,
China could use the app to collect sensitive information about Americans.
The other piece of it is all about the algorithm,
which is maybe they could use the they can manipulate
the algorithm to push certain divisive narratives on American citizens
(16:48):
who are using the app and make people, you know,
like just just create discord in the United States and
change public discourse. And I think the fact, so like
your question, is the algorithm that special. I think that
the fact that there's all this, that there's all.
Speaker 2 (17:02):
Of these, all of these, does the national security concerns
go away under this new deal?
Speaker 6 (17:06):
Who knows?
Speaker 2 (17:07):
Right, Like, I don't know, We're going to continue, I know,
Alexandra Levine, thank you so much.
Speaker 6 (17:11):
Bloomberg News Technology Reporter.
Speaker 1 (17:13):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
us live weekday afternoons from two to five 's during
this listen on Applecarplay and Android Atto with the Bloomberg
Business app, or watch us live on YouTube.
Speaker 2 (17:26):
Think wind turbines, power generators and transmitters, industrial motors and
gears and motion sensors and based on a conversation we're
just having off a hair.
Speaker 6 (17:34):
Even crypto and.
Speaker 4 (17:34):
Blockchain, they're all related. You've got to have power you
do to make that crypto to.
Speaker 6 (17:41):
Make it all happen.
Speaker 2 (17:42):
But anyway, bigger picture, you get an idea of what
Stemens USA is all about. As the company shared with us,
the USA unit employees about forty five thousand employees fifty
states and Puerto Rico and generated twenty one point one
billion revenue in fiscal gear twenty twenty four.
Speaker 6 (17:57):
Back with us. Delighted to have with her with us.
Barba humpted.
Speaker 2 (18:00):
She's present CEO of Semens USA. She's here in studio.
Speaker 12 (18:04):
How are you, Carolyn Tim I'm thrilled to be here,
so thanks so much.
Speaker 10 (18:07):
For the invitation.
Speaker 6 (18:07):
Well, it's great to have you here.
Speaker 2 (18:09):
And there's a lot to get to, so much coming
at us macro, though I always like to start your view.
Speaker 6 (18:13):
On the environment right now, yeah, right now.
Speaker 12 (18:16):
What I see is a huge emphasis by business in
making sure that we are protecting our future. We know
that it's in our long term business best interest to
make brilliant use of resources, make sure that we keep
the future whole and ready. So this is what Semens
(18:37):
has been working on. Semens business strategy is actually built
around global mega trends and so creating technology or mega trends.
Speaker 2 (18:44):
That can drive you crazy and you can't take advantage
of or not right away. And there are mega trends
that are like, oh, let's.
Speaker 3 (18:51):
Do it, let's run, or there are mega trends that
aren't necessarily aligned with the views of a presidential administration exactly.
Speaker 12 (18:56):
That makes some more challenging, but it's hard to argue
with things that are inexorable forces. So we know the
climate is changing, we know that people everywhere are aging,
We know that everywhere, more and more people are living
in cities. Semens brings technologies that transform the every day,
enabling us to really live, manage, and thrive in changing circumstances.
Speaker 3 (19:18):
So on we're going to continue with energy here and
that's where I want to start. Carol mentioned wind turbines,
but here in the United States, the President has made
clear his.
Speaker 4 (19:25):
View on wind power. How much of a setback has
that been for Semens USA.
Speaker 12 (19:29):
Well, I will clarify that my colleagues at Semen's Energy
obviously have taken that on and you've seen Semens Energy
thriving over the last year at siemens AG, the US
entity I'm responsible for. Once those electrons are generated, we're
the ones who are moving the medium voltage, low voltage.
We're the ones working at the grid edge, which I
(19:51):
think is where there's so much fruitful development to be done.
So yes, and I just loved your last interview. We
need more power. Everyone on stands we do. There's just
insatiable demand for electrons. Actually, we're agnostic about how those
electrons get generated. What we want to do is move
those to where they're used best. Think AI data factories.
(20:13):
Think the kind of data centers we've been building, Think
about manufacturing coming back to the United States. All of
those are brilliant uses of the power that we can generate.
Speaker 2 (20:24):
What can you tell us about the AI buildout and
what you guys are seeing firsthand.
Speaker 12 (20:28):
Well, it's massive, it's massive. It is critical for the
US to maintain leadership in AI. We also know that
one of the most exciting things that will happen is
AI at the edge. So you can think about a
manufacturing location as a humongous generator of data. Every factory
is producing just massive amounts of data, more data than
(20:50):
any individual could make sense of. But when you bring
tools like our industrial AI copilot into the manufacturing environment,
it allows users to harness that data, make better decisions,
really drive their operations. And we're seeing success all over
the place.
Speaker 6 (21:08):
What does it mean? Give us an example.
Speaker 2 (21:09):
So you give the copilot into what factory or whatever,
or what plant facility, and it does what well.
Speaker 12 (21:15):
So the first thing it does is makes it possible
for mere mortals like you and me to actually interact
with automated machinery. Instead of having to know the programming languages,
we can speak in natural language and have the AI
translate into the programming language of.
Speaker 10 (21:31):
The manufacturing equipment.
Speaker 12 (21:32):
That allows us to employ people who maybe previously thought
I could never get a job in manufacturing. I don't
know enough, I haven't had enough background in it. But
now we can. I'll tell you that we have operations
in Fort Worth, Texas where we're actually building the electrical
components that go into data centers and with that incredible
demands the switchboards that manage that electricity. We needed to
(21:55):
hire seven hundred people to work in the plant, and
the local management said, let's hire retired principles and teachers. First,
let's create an on site training program, and now we have.
You know, former pizza delivery guys, former chefs, former checkout
clerks are rock stars in the manufacturing environment.
Speaker 3 (22:16):
You talked about the tool that your customers use when
it comes to AI being a copilot. What about internally
are you doing since we last spoke when it comes
to AI, boy, you know, we.
Speaker 12 (22:27):
Are in that era when no one knows where this
will go. So the encouragement at Siemens is for everyone
to lean in, start learning, get familiar, get comfortable with
using AI. And my favorite thing at the end of
a business meeting, you know, let's say we call the
meeting ends five minutes early. I turned to the team
and say, what are you doing with AI? And I've
(22:49):
heard the most amazing things, like the finance team who said, well,
we just generated the balance sheet that we just reviewed
with AI, so it's much.
Speaker 4 (22:56):
More informal than it is formal.
Speaker 12 (22:58):
Right now, it is, and I'll tell you why it's
important that we learn. And some people would say, oh, no, no,
I want to control that. I want to make sure
that we're sharing best practices.
Speaker 10 (23:07):
Yeah, yeah, yeah, all that's good.
Speaker 12 (23:08):
But first first, let's.
Speaker 10 (23:11):
Push the edges and see what we can do.
Speaker 6 (23:13):
Do you think AI is going to make us all idiots?
Speaker 10 (23:16):
No, because I think.
Speaker 2 (23:17):
About what you said about anybody who doesn't even know
the coding program can get there and talk and have
a conversation, and.
Speaker 6 (23:23):
I just I have this fear that we're just going
to rely on AI.
Speaker 13 (23:27):
To do it.
Speaker 10 (23:27):
Don't be afraid. Here's what's done.
Speaker 2 (23:30):
I'm not afraid, and I've played with it and I'm
blowed away with it. But I also can see how
as it gets smarter and smarter and smarter and more
specific in terms of fields that it can do, it
will make.
Speaker 10 (23:40):
You more and more powerful then as you go.
Speaker 12 (23:43):
So think about AI as that supertool that will take
the least among us, those with the least amount of
background and expertise, and give us the knowledge and power
to perform at a higher level. This is going to
be so exciting to see. Then what do experts do
with this additional power? How far can they push?
Speaker 2 (24:04):
It makes me wonder if we're going to need sophisticated
workers from outside the US.
Speaker 3 (24:07):
Perfect segue to talk about H one B visas, because
that is where we want to add. We're trying to
ask everyone we talked to about what's stemming from the
confusion Friday and through the weekend.
Speaker 4 (24:18):
How do you use H one B visas at Semens USA?
Speaker 10 (24:20):
Yeah, we do.
Speaker 12 (24:21):
We bring people from all over the world who have
special knowledge and things that we're you know, today, I
would say less than five percent of our population in Semen's.
Speaker 10 (24:29):
USA is folks on H one B visas. But that's
a that's a number, that's a great number.
Speaker 12 (24:34):
And the point is that we're glocal, what we are,
what we're working on is making sure we share lessons learned,
you know, bringing people to the US for experiences and
then obviously sharing their knowledge that works.
Speaker 3 (24:46):
ESSK with a new potential one hundred thousand dollars fee
associated with these.
Speaker 12 (24:49):
Visas, it'll factor into the business case analysis.
Speaker 3 (24:52):
Would you are still half five percent of your workforce
have these visas.
Speaker 12 (24:55):
We'll have to see, We'll have to see, you know,
I want to see how this develops. And we are
work to make sure first of all, that our employees
are in good shape. You know that they're able to
travel and really accomplish the mission.
Speaker 3 (25:07):
Is the reason you have those employees because you cannot
find those employees in the US.
Speaker 10 (25:11):
In some cases it is.
Speaker 12 (25:13):
In some cases it is that we want to give
people the global experience that's going to really make them
more effective and understanding. Here's what the US can produce
as we address markets elsewhere.
Speaker 2 (25:25):
You said you're going to do the financial analysis, Could
it mean that that one hundred thousand dollars fee if
you guys want those workers, that it's going to feed
into costs and higher costs of things just quickly.
Speaker 12 (25:35):
I think this is going to be part of an
ever changing equation. Our labor costs obviously are a big
portion of what we do at Semens, right, and so
this is I would tell you that our export Controls
colleagues have been our heroes this year.
Speaker 6 (25:50):
I bet bet they're on speed dial. Barbara. Thank you
so much.
Speaker 2 (25:55):
Barbara Humpton, President and CEO, of Siemens USA joining us
right here on Bloomberg Business Week Daily.
Speaker 4 (26:01):
Stay with us.
Speaker 3 (26:02):
More from Bloomberg Business Week Daily coming up after this.
Speaker 1 (26:09):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
us live weekday afternoons from two to five e's during
Listen on Applecarplay and Android Auto with the Bloomberg Business app,
or watch us live on YouTube.
Speaker 2 (26:23):
I'm curious to see what our next guest has to
say about the market environment. Paisley Nardini is managing director
and head of multi Asset Solutions at Simplify Asset Management.
They've got more than ten point two billion in assets
as of undermanage it management. Try that again, under management,
and she joins us here in our sector broker studio.
Speaker 6 (26:43):
Mondays are tough.
Speaker 4 (26:45):
Especially with all this news coming at us.
Speaker 6 (26:47):
It's a lot. It's a lot, Paisley, good to have
you here. Welcome, welcome, Nice to have you in studio.
Speaker 13 (26:52):
Yeah, I was going to say a longtime listener, first
time fish Bowler, thanks for having me.
Speaker 8 (26:58):
It's not intimidating at all.
Speaker 2 (27:00):
No need to be intimidated. There is a lot coming
at investors. Another record on Wall Street. It's kind of
crazy sometimes does it feel like things are getting overheated
in your view?
Speaker 13 (27:10):
I don't know if overheated is the terminology that comes
to mind, but in essence, yes, I think that.
Speaker 6 (27:15):
We've been to terminology.
Speaker 7 (27:16):
I don't know.
Speaker 13 (27:17):
I'm trying to figure it out still, but let's go
with that for now. I would say the last couple
weeks and months, we've been anticipating a bit of a
September selloff. A lot of this is driven by seasonality.
September tends to be a week month. We had the
FED rate cut, whether or not that was going to
come in at twenty five or fifty or not at all,
I think left a lot of people with higher levels
of uncertainty. Now that that has passed, markets seem to
(27:39):
kind of forget about it all time highs, as you mentioned,
whether it be in small caps, large caps, international stocks,
and even gold as well. I still think there's some
turbulence potentially ahead of us, but TBD and I do
think that as it relates specifically to the bond market,
and as it relates to rate cuts, there's a lot
that could transpire in the next couple weeks.
Speaker 3 (28:00):
Yeah, I don't think you're the only one who thinks
there could be turbulence ahead. What specifically concerns you when
you look ahead?
Speaker 13 (28:06):
Specifically, I would say the markets pricing or the expectations
for rate cuts over the next six to twelve months.
Speaker 3 (28:13):
Was it strange to you that you saw that we
saw with the dot plot. We're we're not with the
dot plot. But really with the way that the voting
members voted last week, it was everybody versus Stephen Myran.
Speaker 13 (28:25):
Yeah, which I think politically speaking, that was almost to
be expected. He was nominated for his Dubvish tilt, and
so he came forward with the descent of potentially looking
for two cuts. What concerns me looking out is that
markets are pricing in anywhere from five to six rate
cuts over the next few months. And I think anytime
when we've seen that aggressiveness of rate cuts, it usually
(28:45):
coincides with a recession. So markets have taken these rate
cuts and have said this is great for markets, this
is offering more support, it's easier monetary policy, and so markets.
Speaker 8 (28:56):
Rallied on that.
Speaker 13 (28:57):
But if we look forward, if we actually get all
of these expected cuts that are going right now being
priced in, that would lead me to believe that we're
headed for a recession. So I think markets are really
focused on today versus next quarter and next year, and
that's what concerns me right now.
Speaker 2 (29:12):
I mean Stephen Myran in that conversation he had with
Bloomberg's Mosen, he was asked specifically about that, about how
he could be so upbeat on the economy and expect
grooth to pick up and yet call for several rate cuts,
which seemed to suggest panic in the economy, and he
said he wasn't panicking, but I mean, I mean, if
(29:33):
we need that many rate cuts, that to me would
say signals some there's some problems in the area.
Speaker 13 (29:39):
Yeah, what I think is more likely to transpire is
almost exactly what we saw a year ago today. The
FED cut by fifty basis points markets that we're on
this trajectory of easy policy ahead, and markets backed up meaningfully,
and the economy continued to maintain itself. Markets continued to
reach new highs. So what that leads me to believe
(29:59):
is is the market wants its cake and eat it too.
And so if these rate cuts are expected, the market
loves that because it's more support.
Speaker 8 (30:07):
But if they come, if they come to fruition. That's
not good.
Speaker 13 (30:10):
So what I think might happen is a lot of
these cuts that are pricing the market might unwind. And
that's where I think the volatility could come from the
next couple months.
Speaker 2 (30:18):
So volatility leading to sell off, significant sell off ten percent, Yeah.
Speaker 13 (30:23):
I think a healthy sell off at this point in
this environment. You know, whether it's a ten percent fifteen
percent drawta on, markets can shrug that off in a
couple of days.
Speaker 8 (30:30):
Any kind of v shape recovery would you add.
Speaker 3 (30:33):
To equity positions when I pull back like.
Speaker 13 (30:35):
That, Absolutely, I'm kind of stocks for the long run
type mentality. I think fundamentally speaking, corporate resiliency through earnings
has been very robust.
Speaker 8 (30:44):
We started to see.
Speaker 13 (30:45):
Maybe some cracks in the labor market, but nothing to
kind of pull me off to the sidelines. So anytime historically,
knowing that we have the FED to step in, and
especially where we are from a rate cutting trajectory right now,
a ten to fifteen percent pullback would lead me to
to kind of pick up some stocks for cheat.
Speaker 2 (31:01):
I mean, you guys think about you know, your multi
asset solutions. You do have alternative assets, So I'm just
curious when you look at where it's ETFs right, yep,
where is money flowing right now? You have alt fixed income,
you have equity income, you have equity. Where's money flowing into?
Where's money flowing out?
Speaker 13 (31:19):
Yeah, we've continued to see this trend for higher needs
for income and distribution yield. If we think about the
kind of the wall of retirees and people kind of
hitting the baby boomer generation now relying on their income
portfolios versus their their you know, their paychecks. Higher levels
of income in their portfolios is absolutely something that continues
to gain steam. And I think it's moving beyond the
(31:41):
traditional sources of investment grade or core bonds in a portfolio,
even beyond high yield bonds into more innovative alternative sources
of income for portfolios, which is in the way of
equity income. So that's where you start to introduce the
use of derivatives in portfolios with sometimes.
Speaker 6 (31:57):
That's scary is largely going though into fixed income.
Speaker 13 (32:00):
Into more equity excuse me, equity income generation strategies as
well as and in that same regard, strategies that have
buffers or protection and I like to call them more
defined outcomes, especially when you're looking at kind of where
you are in the life cycle of earnings and you're
relying on your portfolios to deliver for you.
Speaker 8 (32:19):
You need increased certainty, and.
Speaker 13 (32:21):
So that's why I think we've seen this boom in
the industry of more defined outcome and protection on the downside.
Speaker 3 (32:25):
So I want to take a step back and just
go kind of go back to the big picture and
the concerns that you see ahead. And you said a
lot of that has to do with rate cuts and
not necessarily coming to fruition in the way that people
expected them to. What about the idea of concerns over
tariffs or these tariffs starting to actually become inflationary like
so many people were concerned about.
Speaker 13 (32:46):
I could make an assumption there, I think it's too
early to tell. I think what we've seen over the
last few months since tariff's were announced on April second,
is that there's a lot of information and then a
lot of information gets taken away from us and the
new information it's provided, and so markets have really shown
almost fatigue or exhaustion around the tariff headlines until we
(33:07):
actually have certainty around the size the scope. I think
markets broadly have been kind of shrugging off tariff headlines,
and that's why we've continued to see all time highs
being made across asset classes, sectors in regions. I think
some of that certainty already has come forth, but as
it relates specifically to inflationary concerns, the discussion around tariffs
(33:28):
kind of being a one time tax versus ongoing, I
don't feel like that's an imminent threat to markets and
kind of a pullback in the next few months here
inflation and tariffs are specifically.
Speaker 6 (33:39):
We're going to leave it on that note. Thank you
so much, really appreciate it.
Speaker 2 (33:42):
Thanks for having any managing director and head of multi
asset solutions that simplify asset management.
Speaker 6 (33:46):
More than ten point two billion in assets.
Speaker 2 (33:49):
Under management, that is of about mid September, joining us
here in studio.
Speaker 1 (33:53):
This is the Bloomberg Business Week Daily podcast, available on Apple, Spotify,
and anywhere else you get your podcasts. Listen live weekday
afternoons from two to five pm Eastern on Bloomberg dot Com,
the iHeartRadio app, tune In, and the Bloomberg Business App.
You can also watch us live every weekday on YouTube
(34:14):
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Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg business
Week Daily reporting from the magazine that helps global leaders
stay ahead with insight on the people, companies, and trends
shaping today's complex economy. Plus global business finance and tech
(00:23):
news as it happens. The Bloomberg Business Week Daily Podcast
with Carol Masser and Tim Stenebeck on Bloomberg Radio.
Speaker 2 (00:32):
Want to go back to a story that's got a
stock moving, and this has to do with Disney, which
is still down but tim off its worst levels of
the day, but still down about one percent.
Speaker 3 (00:39):
Here the company said Jimmy Kimme Alive will return to
the air on Tuesday, ending a suspension in post following
controversial remarks it's ABC Late Night host made about the
assassination of Republican activist Charlie Kirk. I want to bring
in Bloomberg News Senior Editor Chris Paul Mary he joins
us in our Los Angeles bureau.
Speaker 4 (00:56):
Chris.
Speaker 3 (00:56):
We got a short statement from Disney about this. They
say they were in thoughtful conversation with Jimmy Kimmel. What
do we know about the decision to bring him back
to air.
Speaker 5 (01:06):
Well, we know that there were talks that really began
between the company and Jimmy on Thursday. This was done
at the highest levels, right between Kimmel himself and Disney
CEO Bob Iger, as well as Dana Walden ahead of
the TV division. There. They took a break over the
weekend and they resumed talks today and obviously they came
to this decision that he's coming back.
Speaker 2 (01:27):
Jimmy, we love you, Come back, Jimmy, not a problem.
Say whatever you want or Jimmy way. You gotta think
about what you're saying. I don't know, what do we know.
I mean, obviously these were behind closed doors, and I'm
sure they're being pretty mom about it, But do we
have any inside of exactly kind of where you know,
Disney stood on all of.
Speaker 6 (01:44):
This in terms of bringing him back.
Speaker 2 (01:46):
And you know, at the same time, I've seen some
stories about individuals calling to you know, cancel your you know,
Disney Plus subscriptions.
Speaker 6 (01:54):
And so on and so forth.
Speaker 2 (01:55):
Was there pressure on streaming that maybe, you know, made
Disney take a second look at all of this.
Speaker 6 (02:00):
I don't know. I'm just asking.
Speaker 2 (02:02):
I'm just curious what we know about the context of
this conversations and why this happened.
Speaker 7 (02:06):
Yeah, I mean there was pressure everywhere.
Speaker 5 (02:08):
This you know, began with just folks in local markets
calling their TV stations and saying they were upset about
his comments, whether it's Salt Lake City or Nashville or wherever.
Speaker 7 (02:18):
And that's really what got down in.
Speaker 5 (02:21):
The comments from the FCC chairman about doing something about
this got the station groups next our Sinclair to act.
ABC was very close behind them in announcing.
Speaker 7 (02:31):
You know, putting this on hiatus.
Speaker 5 (02:33):
But ABC did always want Kimmel to come back, and
you know, he's also in a tricky position. Sinclair in particular,
has called for him to apologize and donate money to
the Kirk family. You know, there's every indication that he
was not long in this job. He wanted to do
something else, but he obviously wants to leave on his
(02:54):
own terms and not be forced out in this situation.
So there's a lot we still don't know whether he's
going to apologize when he gets back.
Speaker 7 (03:01):
On the air. You know, how long he'll stay.
Speaker 5 (03:04):
In this job, if Disney's even going to stick with
the late night format.
Speaker 3 (03:08):
So what happens now to the comments that Brendan Carr,
the chairman of the FCC made last week, which you know,
even some in the in his own party, Republican Ted
Cruz for example, had some real concerns with the way
that the FCC chairman was going about this. What happens
now on that side of things, Well, he can sort.
Speaker 7 (03:29):
Of declare victory either way.
Speaker 5 (03:31):
You know, he got the station groups to take kim
aloft the air, even if it's a short while, and
if they come back, he'll probably say it was their decision,
and we are of course reaching out the FCC for comment.
But you know, his words certainly got actions, that's for sure.
Speaker 7 (03:50):
Yeah.
Speaker 2 (03:50):
It just makes me wonder because I feel like the
last week or so we've talked about media in all
its forms, just really being focused on by President Trump,
right coming back from the UK, making those comments about
you know, if a network says something that isn't nice,
(04:10):
you know, maybe their licenses should be looked at. And
I'm paraphrasing, but is the heat off from the White House?
I don't know, Like, what's the.
Speaker 8 (04:21):
What's the feeling.
Speaker 5 (04:22):
I think your paraphrasing was pretty was pretty kind. I
think the President said that he could just take away
their licenses if.
Speaker 7 (04:28):
He didn't like what they were saying about him.
Speaker 5 (04:30):
Yeah, obviously a lot of people will have that problem
with that from you know.
Speaker 7 (04:35):
Constitutional standpoint.
Speaker 5 (04:37):
But this is you know, probably the height of what's
been along running Trump war on the media.
Speaker 7 (04:45):
We said last week there's really been no president.
Speaker 5 (04:48):
Every president has a difficult time of journalists from time
to time, but nobody has made this, has made this
kind of push to the extreme that Trump has suing
them on a regular basis, threatening to take away their
licenses on regular basis.
Speaker 4 (05:01):
Uh.
Speaker 5 (05:01):
And so a large degree seeing them kowtow to these efforts,
and you know, some people saying we're sort of in
a danger of coming into a state run media in
this country. So yeah, a lot of concern on both sides.
Speaker 2 (05:14):
But christ and to be fair, Timmy kimme Olla is
not news, it's entertainment. And I am curious there you
are in La right, We're still so much is done
in the entertainment world. And I wonder, you know, movies, actors, producers, directors,
they're not afraid to kind of be critical of an administration.
(05:35):
I'm not talking about this current one, but this one
or another they're not afraid. And I just wonder, what's
what's being talked about, uh in LA and within the
kind of Hollywood community about what has happened in the
last week, is there is there a tremendous pushback against limitations.
Speaker 8 (05:52):
Yeah.
Speaker 5 (05:53):
We saw public statements for the Screen Actors, the Writers Guild.
We saw protests in front of the studio, the theater
where you Kimmel's shot, we know, you know, we saw
some prominent actors and producers in that come out, you know,
against Disney. You know, we even saw Ted Cruz uh
publican center from Texas say things are going a little
(06:13):
too far.
Speaker 7 (06:14):
So, you know, there's there's definitely been a pushback.
Speaker 5 (06:19):
But at the end of the day, we've also seen
these companies capitulate time and time again. And those are
the people that underwrite these projects, these movies, these TVs.
Speaker 7 (06:27):
Yeah, so you.
Speaker 3 (06:29):
Know, but Chris, that is happening before we let you go.
This also comes at a really challenging time for Late Night.
I mean, Stephen Colbert is on the last year of
his contract. He's he's out after this. The viewership is
not what it was in its heyday. People are watching
their phones instead of watching the screen at home together
every night. By the time people see some of these clips.
(06:50):
They're watching them on social media, They're not seeing them live.
I mean, the business is completely changing. It's completely changed.
Speaker 5 (06:57):
That's right, And it remains to be seen whether all
these shows stick around. Certainly Cole there is going off
the air and not being replaced.
Speaker 7 (07:04):
Whether that's the same for Jimmy Come Alive. We don't
over shore.
Speaker 5 (07:07):
But these are expensive shows, you know, every day, two
hundred people and a staff, very high paid you know, hosts,
and you know, the local station owners would love to
just take this time back.
Speaker 7 (07:16):
They pay.
Speaker 5 (07:16):
Most of the ad revenue, you know, goes to the
to the network, not them. They'd love to be able
to put their own news or other programming in that
time slot.
Speaker 2 (07:25):
You know, there's not a lot of things that are
certain in this world, Chris, But I'm just going to
kind of take a wild guess that the viewership of
Jimmy Kimmel tomorrow night is going to be pretty high.
Speaker 7 (07:35):
Yeah, certainly a highs in a long time for sure.
Speaker 6 (07:38):
All Right, We're going to run. Hey, Chris, thank you
so much, really appreciate it.
Speaker 2 (07:41):
Our Chris, Paul Mary He's Bloomberg new senior editor joining
us there from our La Bureau.
Speaker 4 (07:46):
Stay with us.
Speaker 3 (07:47):
More from Bloomberg Business Week Daily coming up after this.
Speaker 1 (07:54):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
US Live weekday afternoons two to five Eastering. Listen on
Apple Karplay and Android Otto with the Bloomberg Business app,
or watch US Live on YouTube.
Speaker 3 (08:08):
Well, President Trump plants to sign an executive order approving
a deal to sell TikTok's US operations to a majority
of US investors later this week.
Speaker 4 (08:15):
That's according to a White House official.
Speaker 3 (08:17):
Also, the US will not take an equity stake in
a deal for TikTok's US operations. That's according to a
senior White House official. The President on Friday made comments
on TikTok from the Oval Office.
Speaker 9 (08:29):
Well, I have a very very tight control and uh,
let's said, it's an amazing thing that's been created. It
is tremendous value with TikTok. And I'm a little prejudiced
because I frankly did so well on it. You know,
it got me numbers that nobody has ever even heard
it before me. So a lot of people wanted the
(08:49):
young people of this country wanted badly. The parents of
those young people wanted badly, and so we were able
to work out a deal with China, and it's a
very good deal for us.
Speaker 10 (09:00):
I hope it's a good deal for.
Speaker 3 (09:01):
Dead as a president on Friday making comments from the
Oval Office on TikTok. Alexandra Levine is Bloomberg News technology reporter.
She covers TikTok, YouTube and more. She joins us here
in the Bloomberg Interactive Brokers studio. Okay, I think it's
fair to say there's a lot we don't know, but
we're also learning more about what a deal is or
what a deal would look like. The President on Friday
(09:21):
saying we were able to work out a deal with China.
It's a very good deal for us, and I hope
it's a very good deal for them.
Speaker 4 (09:29):
What is the deal?
Speaker 11 (09:31):
So, as you've said, there's a lot that we don't know.
Things are very much in flux. What we do know,
what we've heard from the White House as recently as
this morning, is that there is set to be this
new TikTok venture created in the United States, and that Oracle,
which TikTok has a long standing relationship with, is basically
going to be on point to help secure this new
(09:52):
US TikTok entity, and they will basically be helping TikTok
to retrain its algorithm and also to make sure that
US data of people, all the Americans, you know, the
roughly half the country using TikTok, that all of it
is secured in the United States and is staying here
and is not going to be accessible by Dance employees
in China.
Speaker 3 (10:12):
So is this a different algorithm than Byte Dance's algorithm
that has captured the attention of so many.
Speaker 11 (10:19):
So this is the I would say, like the million
dollar question and the biggest sticking point, and sort of
there's even been squabbling today and I think this will
also continue over this algorithm point. The whole sticking point
that held at the deal for all this time was
the algorithm. This is the secret sauce. It's this technical
black box that is the thing that keeps people hooked
and scrolling and scrolling. Byte Dance and China did not
(10:41):
want to give up any kind of control of the algorithm.
The law required exactly that. And so what I think
we are seeing is the White House really trying to
thread the needle and present the agreement that they have
reached in a way that makes it seem like that
will get everybody comfortable with the level of control that
(11:02):
byte Dance may ultimately have over the algorithm.
Speaker 10 (11:05):
There's talk of licensing the algorithm.
Speaker 11 (11:07):
The idea is that bye Dance would basically make a
copy of it, give that to the United States, and
then the United States would retrain it by you know,
TikTok engineers based in the United States would essentially retrain
it on US user data.
Speaker 6 (11:21):
And I think that this again, it's it's really what
could possibly go wrong.
Speaker 11 (11:24):
It's trying to thread the needle on an intensely enormously
complicated issue. And and I think one fascinating thing that
came out of a conversation that the White House hat
with reporters this morning was that the White House is
very much downplaying the complexity of the algorithm, saying, it's just,
you know, a mathematical it's just this mathematical thing, and
it's not very complex to sort of drill down into
(11:46):
the algorithm and sort of wrap your hands around it.
And I think I think there's some sort of there's
some some sort of missing piece here, and there's still
some some piece of this that we don't quite understand
because the algorithm that they're downplaying as this sort of easy, this,
the sort of piece of this is the very thing
that has basically held up TikTok and miss Limbo for
as long as it has.
Speaker 6 (12:06):
I mean, isn't it net net.
Speaker 2 (12:07):
We're either going to get an algorithm that isn't so
cool and not like the original, or we're going to
have Chinese engineers or something that.
Speaker 6 (12:17):
Actually still are involved.
Speaker 2 (12:19):
And so the concerns about a potential passive American data
which have been some of the concerns, could still happen.
Speaker 6 (12:27):
I don't understand how we're going to make this work.
Speaker 11 (12:29):
Well, look, there was a there was this thing called
Project Texas that that's it was. It was a team
up basically between Oracle and TikTok years ago to try
to solve the national security issues.
Speaker 10 (12:41):
The first time.
Speaker 11 (12:42):
This is back around the time that Trump had tried
to ban TikTok over similar similar nationality concerns drying his
first presidency. Oracle was on deck as you know who,
Trump was saying should should be the one to buy
the app if they can make a sale. That ultimately
all fell through, But Oracle and TikTok basically you know,
this undertaking together called Project Texas. It was a multi
(13:02):
billion dollar project that basically sought Oracle trying to help
TikTok separate and secure US user data so that it
only stayed in the United States. That was basically presented
to the administra, the Biden administration at the time as
a solve for all these national security concerns to make
the whole problem go away, and talks progress until they stalled,
and then they died. And I think a large part
(13:24):
of the reason why they died and why Project Texas,
this Oracle TikTok team up was not good the first
time is because there was no way for there was
no way to be able to verify if there was
any manipulation going on or if there was any data
there was no There were there were questions about how,
you know, if that happened, how would anybody know, how
it would be, how would the average person you know know,
(13:45):
and also how would the government be able to verify that?
But then there were also just like loopholes and shortcomings.
It's an incredibly complex setup. When you've got you know,
the company here, and then you've got ByteDance, which is
based in Beijing, and I think that they're trying now
to thread the needle, and this whole proposal is reminding
a lot of people who have been following this for
years as like it reminds it's reminding everyone of sort
(14:07):
of a Project Texas two point zero. But it's not
clear that it's not clear that it's necessarily going to
solve the problems.
Speaker 6 (14:14):
That it's set out to solve.
Speaker 3 (14:15):
What's what's notable to me about this is that well
TikTok and the US government have been embroiled in this
negotiation for the call you will after you have companies
like YouTube and meta platforms creating these clones or at
least ability to actually watch videos on the platforms in
(14:38):
a very similar way that grabs attention in a very
similar way. It's a long form way of me saying
this just sounds like a win for the American rivals.
Speaker 11 (14:48):
I think that they're watching with bated breath. They're sort
of acting like they're not really paying that close attention.
I was just at a YouTube event last week where
they were saying that this was not really on the radar.
It absolutely is on the radar, But but I think
that if TikTok is able to continue operating in the
US that in some ways will not be a win
for the rivals. I think, you know, in some ways
(15:09):
this limbo has been a really good thing for the rivals.
You definitely at one point saw and influx to other platforms.
You saw the other platforms being able to copy TikTok
and some of the features that TikTok had.
Speaker 4 (15:21):
How special is this algorithm?
Speaker 1 (15:23):
Like?
Speaker 3 (15:23):
How hard is it to actually understand what I like
versus what somebody else likes and just.
Speaker 4 (15:27):
Show us videos that will get.
Speaker 3 (15:31):
Us to keep watching. Doesn't seem that hard? But then again,
here I am a person talking of not creating these algorithms.
Speaker 6 (15:40):
I think that, you know, how special is that special sauce?
Speaker 7 (15:43):
Is it?
Speaker 8 (15:43):
Really?
Speaker 11 (15:44):
I mean, I think that if you ask anyone that
spends time across all these platforms on the platforms, people
will have different preferences, right Like, some people will be more,
you know, more hooked on TikTok, some people will be
more hooked on YouTube. I think though, that the fact
that it has been this black box and it has
built it has been build up to be this thing
that is not for sale and that will never be
turned over, and that will never be you know, China
(16:06):
will never relinquish control. I think it has added to
the sort of mystique and it is also reinforced or
like crystallized for some in Washington. Exactly what the concerns
with the algorithm are in the first place, So the
main national security concerns, which I feel like get kind
of like buried in all of this.
Speaker 4 (16:21):
Number one exactly, there's.
Speaker 11 (16:24):
The concern Number one that maybe Bye Dance and by translation,
China could use the app to collect sensitive information about Americans.
The other piece of it is all about the algorithm,
which is maybe they could use the they can manipulate
the algorithm to push certain divisive narratives on American citizens
(16:48):
who are using the app and make people, you know,
like just just create discord in the United States and
change public discourse. And I think the fact, so like
your question, is the algorithm that special. I think that
the fact that there's all this, that there's all.
Speaker 2 (17:02):
Of these, all of these, does the national security concerns
go away under this new deal?
Speaker 6 (17:06):
Who knows?
Speaker 2 (17:07):
Right, Like, I don't know, We're going to continue, I know,
Alexandra Levine, thank you so much.
Speaker 6 (17:11):
Bloomberg News Technology Reporter.
Speaker 1 (17:13):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
us live weekday afternoons from two to five 's during
this listen on Applecarplay and Android Atto with the Bloomberg
Business app, or watch us live on YouTube.
Speaker 2 (17:26):
Think wind turbines, power generators and transmitters, industrial motors and
gears and motion sensors and based on a conversation we're
just having off a hair.
Speaker 6 (17:34):
Even crypto and.
Speaker 4 (17:34):
Blockchain, they're all related. You've got to have power you
do to make that crypto to.
Speaker 6 (17:41):
Make it all happen.
Speaker 2 (17:42):
But anyway, bigger picture, you get an idea of what
Stemens USA is all about. As the company shared with us,
the USA unit employees about forty five thousand employees fifty
states and Puerto Rico and generated twenty one point one
billion revenue in fiscal gear twenty twenty four.
Speaker 6 (17:57):
Back with us. Delighted to have with her with us.
Barba humpted.
Speaker 2 (18:00):
She's present CEO of Semens USA. She's here in studio.
Speaker 12 (18:04):
How are you, Carolyn Tim I'm thrilled to be here,
so thanks so much.
Speaker 10 (18:07):
For the invitation.
Speaker 6 (18:07):
Well, it's great to have you here.
Speaker 2 (18:09):
And there's a lot to get to, so much coming
at us macro, though I always like to start your view.
Speaker 6 (18:13):
On the environment right now, yeah, right now.
Speaker 12 (18:16):
What I see is a huge emphasis by business in
making sure that we are protecting our future. We know
that it's in our long term business best interest to
make brilliant use of resources, make sure that we keep
the future whole and ready. So this is what Semens
(18:37):
has been working on. Semens business strategy is actually built
around global mega trends and so creating technology or mega trends.
Speaker 2 (18:44):
That can drive you crazy and you can't take advantage
of or not right away. And there are mega trends
that are like, oh, let's.
Speaker 3 (18:51):
Do it, let's run, or there are mega trends that
aren't necessarily aligned with the views of a presidential administration exactly.
Speaker 12 (18:56):
That makes some more challenging, but it's hard to argue
with things that are inexorable forces. So we know the
climate is changing, we know that people everywhere are aging,
We know that everywhere, more and more people are living
in cities. Semens brings technologies that transform the every day,
enabling us to really live, manage, and thrive in changing circumstances.
Speaker 3 (19:18):
So on we're going to continue with energy here and
that's where I want to start. Carol mentioned wind turbines,
but here in the United States, the President has made
clear his.
Speaker 4 (19:25):
View on wind power. How much of a setback has
that been for Semens USA.
Speaker 12 (19:29):
Well, I will clarify that my colleagues at Semen's Energy
obviously have taken that on and you've seen Semens Energy
thriving over the last year at siemens AG, the US
entity I'm responsible for. Once those electrons are generated, we're
the ones who are moving the medium voltage, low voltage.
We're the ones working at the grid edge, which I
(19:51):
think is where there's so much fruitful development to be done.
So yes, and I just loved your last interview. We
need more power. Everyone on stands we do. There's just
insatiable demand for electrons. Actually, we're agnostic about how those
electrons get generated. What we want to do is move
those to where they're used best. Think AI data factories.
(20:13):
Think the kind of data centers we've been building, Think
about manufacturing coming back to the United States. All of
those are brilliant uses of the power that we can generate.
Speaker 2 (20:24):
What can you tell us about the AI buildout and
what you guys are seeing firsthand.
Speaker 12 (20:28):
Well, it's massive, it's massive. It is critical for the
US to maintain leadership in AI. We also know that
one of the most exciting things that will happen is
AI at the edge. So you can think about a
manufacturing location as a humongous generator of data. Every factory
is producing just massive amounts of data, more data than
(20:50):
any individual could make sense of. But when you bring
tools like our industrial AI copilot into the manufacturing environment,
it allows users to harness that data, make better decisions,
really drive their operations. And we're seeing success all over
the place.
Speaker 6 (21:08):
What does it mean? Give us an example.
Speaker 2 (21:09):
So you give the copilot into what factory or whatever,
or what plant facility, and it does what well.
Speaker 12 (21:15):
So the first thing it does is makes it possible
for mere mortals like you and me to actually interact
with automated machinery. Instead of having to know the programming languages,
we can speak in natural language and have the AI
translate into the programming language of.
Speaker 10 (21:31):
The manufacturing equipment.
Speaker 12 (21:32):
That allows us to employ people who maybe previously thought
I could never get a job in manufacturing. I don't
know enough, I haven't had enough background in it. But
now we can. I'll tell you that we have operations
in Fort Worth, Texas where we're actually building the electrical
components that go into data centers and with that incredible
demands the switchboards that manage that electricity. We needed to
(21:55):
hire seven hundred people to work in the plant, and
the local management said, let's hire retired principles and teachers. First,
let's create an on site training program, and now we have.
You know, former pizza delivery guys, former chefs, former checkout
clerks are rock stars in the manufacturing environment.
Speaker 3 (22:16):
You talked about the tool that your customers use when
it comes to AI being a copilot. What about internally
are you doing since we last spoke when it comes
to AI, boy, you know, we.
Speaker 12 (22:27):
Are in that era when no one knows where this
will go. So the encouragement at Siemens is for everyone
to lean in, start learning, get familiar, get comfortable with
using AI. And my favorite thing at the end of
a business meeting, you know, let's say we call the
meeting ends five minutes early. I turned to the team
and say, what are you doing with AI? And I've
(22:49):
heard the most amazing things, like the finance team who said, well,
we just generated the balance sheet that we just reviewed
with AI, so it's much.
Speaker 4 (22:56):
More informal than it is formal.
Speaker 12 (22:58):
Right now, it is, and I'll tell you why it's
important that we learn. And some people would say, oh, no, no,
I want to control that. I want to make sure
that we're sharing best practices.
Speaker 10 (23:07):
Yeah, yeah, yeah, all that's good.
Speaker 12 (23:08):
But first first, let's.
Speaker 10 (23:11):
Push the edges and see what we can do.
Speaker 6 (23:13):
Do you think AI is going to make us all idiots?
Speaker 10 (23:16):
No, because I think.
Speaker 2 (23:17):
About what you said about anybody who doesn't even know
the coding program can get there and talk and have
a conversation, and.
Speaker 6 (23:23):
I just I have this fear that we're just going
to rely on AI.
Speaker 13 (23:27):
To do it.
Speaker 10 (23:27):
Don't be afraid. Here's what's done.
Speaker 2 (23:30):
I'm not afraid, and I've played with it and I'm
blowed away with it. But I also can see how
as it gets smarter and smarter and smarter and more
specific in terms of fields that it can do, it
will make.
Speaker 10 (23:40):
You more and more powerful then as you go.
Speaker 12 (23:43):
So think about AI as that supertool that will take
the least among us, those with the least amount of
background and expertise, and give us the knowledge and power
to perform at a higher level. This is going to
be so exciting to see. Then what do experts do
with this additional power? How far can they push?
Speaker 2 (24:04):
It makes me wonder if we're going to need sophisticated
workers from outside the US.
Speaker 3 (24:07):
Perfect segue to talk about H one B visas, because
that is where we want to add. We're trying to
ask everyone we talked to about what's stemming from the
confusion Friday and through the weekend.
Speaker 4 (24:18):
How do you use H one B visas at Semens USA?
Speaker 10 (24:20):
Yeah, we do.
Speaker 12 (24:21):
We bring people from all over the world who have
special knowledge and things that we're you know, today, I
would say less than five percent of our population in Semen's.
Speaker 10 (24:29):
USA is folks on H one B visas. But that's
a that's a number, that's a great number.
Speaker 12 (24:34):
And the point is that we're glocal, what we are,
what we're working on is making sure we share lessons learned,
you know, bringing people to the US for experiences and
then obviously sharing their knowledge that works.
Speaker 3 (24:46):
ESSK with a new potential one hundred thousand dollars fee
associated with these.
Speaker 12 (24:49):
Visas, it'll factor into the business case analysis.
Speaker 3 (24:52):
Would you are still half five percent of your workforce
have these visas.
Speaker 12 (24:55):
We'll have to see, We'll have to see, you know,
I want to see how this develops. And we are
work to make sure first of all, that our employees
are in good shape. You know that they're able to
travel and really accomplish the mission.
Speaker 3 (25:07):
Is the reason you have those employees because you cannot
find those employees in the US.
Speaker 10 (25:11):
In some cases it is.
Speaker 12 (25:13):
In some cases it is that we want to give
people the global experience that's going to really make them
more effective and understanding. Here's what the US can produce
as we address markets elsewhere.
Speaker 2 (25:25):
You said you're going to do the financial analysis, Could
it mean that that one hundred thousand dollars fee if
you guys want those workers, that it's going to feed
into costs and higher costs of things just quickly.
Speaker 12 (25:35):
I think this is going to be part of an
ever changing equation. Our labor costs obviously are a big
portion of what we do at Semens, right, and so
this is I would tell you that our export Controls
colleagues have been our heroes this year.
Speaker 6 (25:50):
I bet bet they're on speed dial. Barbara. Thank you
so much.
Speaker 2 (25:55):
Barbara Humpton, President and CEO, of Siemens USA joining us
right here on Bloomberg Business Week Daily.
Speaker 4 (26:01):
Stay with us.
Speaker 3 (26:02):
More from Bloomberg Business Week Daily coming up after this.
Speaker 1 (26:09):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
us live weekday afternoons from two to five e's during
Listen on Applecarplay and Android Auto with the Bloomberg Business app,
or watch us live on YouTube.
Speaker 2 (26:23):
I'm curious to see what our next guest has to
say about the market environment. Paisley Nardini is managing director
and head of multi Asset Solutions at Simplify Asset Management.
They've got more than ten point two billion in assets
as of undermanage it management. Try that again, under management,
and she joins us here in our sector broker studio.
Speaker 6 (26:43):
Mondays are tough.
Speaker 4 (26:45):
Especially with all this news coming at us.
Speaker 6 (26:47):
It's a lot. It's a lot, Paisley, good to have
you here. Welcome, welcome, Nice to have you in studio.
Speaker 13 (26:52):
Yeah, I was going to say a longtime listener, first
time fish Bowler, thanks for having me.
Speaker 8 (26:58):
It's not intimidating at all.
Speaker 2 (27:00):
No need to be intimidated. There is a lot coming
at investors. Another record on Wall Street. It's kind of
crazy sometimes does it feel like things are getting overheated
in your view?
Speaker 13 (27:10):
I don't know if overheated is the terminology that comes
to mind, but in essence, yes, I think that.
Speaker 6 (27:15):
We've been to terminology.
Speaker 7 (27:16):
I don't know.
Speaker 13 (27:17):
I'm trying to figure it out still, but let's go
with that for now. I would say the last couple
weeks and months, we've been anticipating a bit of a
September selloff. A lot of this is driven by seasonality.
September tends to be a week month. We had the
FED rate cut, whether or not that was going to
come in at twenty five or fifty or not at all,
I think left a lot of people with higher levels
of uncertainty. Now that that has passed, markets seem to
(27:39):
kind of forget about it all time highs, as you mentioned,
whether it be in small caps, large caps, international stocks,
and even gold as well. I still think there's some
turbulence potentially ahead of us, but TBD and I do
think that as it relates specifically to the bond market,
and as it relates to rate cuts, there's a lot
that could transpire in the next couple weeks.
Speaker 3 (28:00):
Yeah, I don't think you're the only one who thinks
there could be turbulence ahead. What specifically concerns you when
you look ahead?
Speaker 13 (28:06):
Specifically, I would say the markets pricing or the expectations
for rate cuts over the next six to twelve months.
Speaker 3 (28:13):
Was it strange to you that you saw that we
saw with the dot plot. We're we're not with the
dot plot. But really with the way that the voting
members voted last week, it was everybody versus Stephen Myran.
Speaker 13 (28:25):
Yeah, which I think politically speaking, that was almost to
be expected. He was nominated for his Dubvish tilt, and
so he came forward with the descent of potentially looking
for two cuts. What concerns me looking out is that
markets are pricing in anywhere from five to six rate
cuts over the next few months. And I think anytime
when we've seen that aggressiveness of rate cuts, it usually
(28:45):
coincides with a recession. So markets have taken these rate
cuts and have said this is great for markets, this
is offering more support, it's easier monetary policy, and so markets.
Speaker 8 (28:56):
Rallied on that.
Speaker 13 (28:57):
But if we look forward, if we actually get all
of these expected cuts that are going right now being
priced in, that would lead me to believe that we're
headed for a recession. So I think markets are really
focused on today versus next quarter and next year, and
that's what concerns me right now.
Speaker 2 (29:12):
I mean Stephen Myran in that conversation he had with
Bloomberg's Mosen, he was asked specifically about that, about how
he could be so upbeat on the economy and expect
grooth to pick up and yet call for several rate cuts,
which seemed to suggest panic in the economy, and he
said he wasn't panicking, but I mean, I mean, if
(29:33):
we need that many rate cuts, that to me would
say signals some there's some problems in the area.
Speaker 13 (29:39):
Yeah, what I think is more likely to transpire is
almost exactly what we saw a year ago today. The
FED cut by fifty basis points markets that we're on
this trajectory of easy policy ahead, and markets backed up meaningfully,
and the economy continued to maintain itself. Markets continued to
reach new highs. So what that leads me to believe
(29:59):
is is the market wants its cake and eat it too.
And so if these rate cuts are expected, the market
loves that because it's more support.
Speaker 8 (30:07):
But if they come, if they come to fruition. That's
not good.
Speaker 13 (30:10):
So what I think might happen is a lot of
these cuts that are pricing the market might unwind. And
that's where I think the volatility could come from the
next couple months.
Speaker 2 (30:18):
So volatility leading to sell off, significant sell off ten percent, Yeah.
Speaker 13 (30:23):
I think a healthy sell off at this point in
this environment. You know, whether it's a ten percent fifteen
percent drawta on, markets can shrug that off in a
couple of days.
Speaker 8 (30:30):
Any kind of v shape recovery would you add.
Speaker 3 (30:33):
To equity positions when I pull back like.
Speaker 13 (30:35):
That, Absolutely, I'm kind of stocks for the long run
type mentality. I think fundamentally speaking, corporate resiliency through earnings
has been very robust.
Speaker 8 (30:44):
We started to see.
Speaker 13 (30:45):
Maybe some cracks in the labor market, but nothing to
kind of pull me off to the sidelines. So anytime historically,
knowing that we have the FED to step in, and
especially where we are from a rate cutting trajectory right now,
a ten to fifteen percent pullback would lead me to
to kind of pick up some stocks for cheat.
Speaker 2 (31:01):
I mean, you guys think about you know, your multi
asset solutions. You do have alternative assets, So I'm just
curious when you look at where it's ETFs right, yep,
where is money flowing right now? You have alt fixed income,
you have equity income, you have equity. Where's money flowing into?
Where's money flowing out?
Speaker 13 (31:19):
Yeah, we've continued to see this trend for higher needs
for income and distribution yield. If we think about the
kind of the wall of retirees and people kind of
hitting the baby boomer generation now relying on their income
portfolios versus their their you know, their paychecks. Higher levels
of income in their portfolios is absolutely something that continues
to gain steam. And I think it's moving beyond the
(31:41):
traditional sources of investment grade or core bonds in a portfolio,
even beyond high yield bonds into more innovative alternative sources
of income for portfolios, which is in the way of
equity income. So that's where you start to introduce the
use of derivatives in portfolios with sometimes.
Speaker 6 (31:57):
That's scary is largely going though into fixed income.
Speaker 13 (32:00):
Into more equity excuse me, equity income generation strategies as
well as and in that same regard, strategies that have
buffers or protection and I like to call them more
defined outcomes, especially when you're looking at kind of where
you are in the life cycle of earnings and you're
relying on your portfolios to deliver for you.
Speaker 8 (32:19):
You need increased certainty, and.
Speaker 13 (32:21):
So that's why I think we've seen this boom in
the industry of more defined outcome and protection on the downside.
Speaker 3 (32:25):
So I want to take a step back and just
go kind of go back to the big picture and
the concerns that you see ahead. And you said a
lot of that has to do with rate cuts and
not necessarily coming to fruition in the way that people
expected them to. What about the idea of concerns over
tariffs or these tariffs starting to actually become inflationary like
so many people were concerned about.
Speaker 13 (32:46):
I could make an assumption there, I think it's too
early to tell. I think what we've seen over the
last few months since tariff's were announced on April second,
is that there's a lot of information and then a
lot of information gets taken away from us and the
new information it's provided, and so markets have really shown
almost fatigue or exhaustion around the tariff headlines until we
(33:07):
actually have certainty around the size the scope. I think
markets broadly have been kind of shrugging off tariff headlines,
and that's why we've continued to see all time highs
being made across asset classes, sectors in regions. I think
some of that certainty already has come forth, but as
it relates specifically to inflationary concerns, the discussion around tariffs
(33:28):
kind of being a one time tax versus ongoing, I
don't feel like that's an imminent threat to markets and
kind of a pullback in the next few months here
inflation and tariffs are specifically.
Speaker 6 (33:39):
We're going to leave it on that note. Thank you
so much, really appreciate it.
Speaker 2 (33:42):
Thanks for having any managing director and head of multi
asset solutions that simplify asset management.
Speaker 6 (33:46):
More than ten point two billion in assets.
Speaker 2 (33:49):
Under management, that is of about mid September, joining us
here in studio.
Speaker 1 (33:53):
This is the Bloomberg Business Week Daily podcast, available on Apple, Spotify,
and anywhere else you get your podcasts. Listen live weekday
afternoons from two to five pm Eastern on Bloomberg dot Com,
the iHeartRadio app, tune In, and the Bloomberg Business App.
You can also watch us live every weekday on YouTube
(34:14):
and always on the Bloomberg terminal
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