September 18, 2024 • 25 mins
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.
Bloomberg Intelligence Chief US Interest Rate Strategist Ira Jersey and Brent Schutte, Chief Investment Officer at Northwestern Mutual Wealth Management Company, discuss the Federal Open Market Committee voting to lower the benchmark rate by 50 basis points to target range of 4.75%-5.0%, the first rate cut in more than four years. Bloomberg News Hedge Fund Reporter Katherine Burton explains why billionaire hedge fund founder Steve Cohen is no longer investing clients’ capital for Point72. Bloomberg News Senior Editor Dimitra Kessenides has Businessweek Magazine’s Best Business School Rankings for 2024–25.
Hosts: Carol Massar and David Gura. Producer: Paul Brennan.
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Episode Transcript
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Speaker 1 (00:02):
Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg business
Week inside from the reporters and editors who bring you
America's most trusted business magazine, plus global business, finance and
tech news. The Bloomberg Business Week Podcast with Carol Messer
(00:23):
and Tim Stenebeck from Bloomberg Radio.
Speaker 2 (00:27):
All right, let's get to what you really want to
hear about, and that is, of course, the FED decision today.
Speaker 3 (00:31):
Fit your J.
Speaker 2 (00:32):
Powell and his press conference after the decision, highlighting that
labor conditions are pretty close to max employment and yet
continue to cool, which has been a plus to inflation.
Speaker 4 (00:42):
Overall, A broad set of indicators suggests that conditions in
the labor market are now less tight than just before
the pandemic in twenty nineteen. The labor market is not
a source of elevated and inflationary pressures.
Speaker 5 (00:56):
Bring us now, Ira Jersey.
Speaker 6 (00:57):
He is the chief US interest Rate Strategisler Intelligence Spreads shootings,
the chief investment officer at Northwestern Mutual Wealth with us
as well, and I let me.
Speaker 5 (01:04):
Start with you.
Speaker 6 (01:05):
Listen to you before this announcement was made today kind
of followed along on the Top Live blog as all
of this unfolded. You were not one who was, shall
we say, enthusiastic about this twenty five or fifty betting
game that was happening over the course of these last
many days. What stood out to you, both from the
statement that we got today and what FED cheer pals
said there at the end, I was saying, just a
moment ago, he was quick to say that, you know,
this shouldn't shouldn't read this as gospel. What the FED
(01:27):
intends to do here as the year goes on.
Speaker 7 (01:29):
Well, that's always been the case with the dots, particularly
since they've been changing them quite frequently at just about
every single quarterly update that they do with that dot plot.
But I think the near term dots, when you think
about November and December's meeting, you know, they made it
pretty clear that unless something significantly changes with the trends
in the economy and inflation, that you're likely to see
(01:51):
you know, modest cuts going forward, so you know, twenty
five basis points over the next couple of meetings. But
I think that's less important to me. What I was
focused on was what they said they were, where they
said they were going to ultimately, and where they think
they're going to even with the economy not hitting into
a recession, is all the way down to under three
percent on the FED funds rate, And you know, the
(02:13):
market was kind of bifurcated is and remains bifurcated in
thinking maybe the Fed's only going to cut to four percent,
or the Fed's going to cut to two percent. And
the Fed decided just to take the middle ground of
that and say, hey, well what do you think about
two and a half percent. The way they get there,
fed funds rate at three percent and inflation at about
(02:34):
two percent, you're talking about about a one percent, you know,
meaning natural funds rate. And when you look at some
of the models they use, that's just about where they
where those are saying the neutral policy rate should be.
Speaker 3 (02:46):
I got to just follow Ara.
Speaker 2 (02:47):
It felt like a little bit of a surprise, at
least for me, I know, the debate that was going on,
it was kind of we just couldn't talk about it enough,
but it did.
Speaker 3 (02:54):
When I saw the fifty bases points.
Speaker 2 (02:55):
I kind of yelled out in the newsroom like, oh
my God, like, I is there something coming undone. Financial
market conditions I thought were pretty okay, like economy still growing,
corporate profits maybe not as upbeat, like is something wrong
that we're missing or what was the thinking behind the
FED No.
Speaker 7 (03:13):
And there was actually a question in the press conference
to char Powell just about that, you know, if they
had had the August payroll report, would they have cut
in July at the July meeting? And he said he
didn't know, but maybe right so, And that's kind of
how I'm taking this fifty basis point move.
Speaker 5 (03:30):
It's more, hey, we probably should.
Speaker 7 (03:32):
Have gone in July. We want to go slow, so
let's do fifty now to kind of catch up to
where we think we're going to have to be. But importantly,
and you know, as you guys mentioned, you know, as
as Dave just mentioned before that what I said yesterday was, look,
I don't care about twenty five or fifty.
Speaker 5 (03:49):
What I care about is what does he say after that?
Speaker 7 (03:52):
And he said exactly what I thought he would say
if they went fifty, and that said, Hey, we went fifty,
don't expect more fifties anytime soon.
Speaker 6 (04:00):
Brett, let me ask you just about you've been so
good about set since saying that you see warning signs,
serving things that are making you nervous about the state
of the economy. This was a confident FED chair speaking
today about the balance of risks about the jobs market,
feeling like this is the moment they aren't behind the curve.
He was empatic, emphatic about that. Didn't want this to
indicate that they felt like they maybe missed something back
in July. Has today's decision caused you to re evaluate
(04:23):
or see in a new way any of those things
that were giving you pause or concern in the run
up to today's meeting.
Speaker 8 (04:30):
He has to be concerned about the labor market. I
remind you that at Jackson Hole, he said and drew
the line in the sand. We neither seek nor welcome
any further deterioration in the labor market. And so why
did they cut fifty basis points. They cut fifty basis
points because the labor market has been weakening, except for
non farm payrolls, which they continued to point to as
the one shining light in the umployment picture. That was
(04:52):
had cold water thrown on it with the eight eighteen
thousand downturn, and now you're at less than one hundred thousand,
right about one hundred thousand, which is in the margin
of era on non farm payrolls, while the rule they
created back in the day, the SAM rule, has been broken.
And so to me, this is a FED clearly worried
about the labor market and word that they may be
too late to actually cutting and that's why they decided
to take fifty not to twenty five. And that still
(05:13):
remains to me seen whether it's too late or not. Look,
I just don't think that the economy that the FED
is going to land this perfectly. And that's where I'm
a bit fearful in the market because it is priced
more so that they will.
Speaker 2 (05:23):
Yeah, I just asked a gymnast, it's not easy to
like kind of hit a perfect landing, Brett.
Speaker 3 (05:26):
Let me just follow though.
Speaker 2 (05:27):
The equity markets, we saw quite a rally initially after
that fifty basis points. I get that, but we've really
pulled back on that. What does it mean for the
financial markets, the equity play in particular.
Speaker 8 (05:39):
Well, I think it was probably a bit of buyer
rum or sell of the news, if you think about it.
We had those leaks or those perceived leaks on Thursday
and Friday of last week, and then maybe even Monday
this week, and so I think it was a little
bit priced and already look look to me, I think
there's a regime change going on underneath the surface no
matter what. This is where we've been pointing to optionality
in asset classes like small and MidCap, which I think
we're already priced as if there might be a recession
(06:00):
one way or the other. Despite recession or no recession,
soft landing, we thought interest rates would be lower because
we thought the Fed would have to lower rates to
either affect that soft landing, or if we had a recession,
rates would go lower because the economy is looking like
it's at a tipping point. And so to me, that's
where small and midcaps they started rallying versus large caps
or even the bag seven July eleventh, which is the
(06:22):
day after we had a CPR report that was weak
and a jobs report the week before where it was
closing into the some rule. And so that's where I
think there's opportunities for investors who are willing to look
past any near term volatility. It's just an asset classes
that people don't want to own right now, but we
think those are the path forward for investors.
Speaker 6 (06:39):
HI right in the minute we have left here, what
is your reaction to what we saw in markets over
the course of the last hour. I was struck when
Tom Keen as bot Michael of JP Morgan just about
what he's watching for.
Speaker 5 (06:47):
He said, kind of.
Speaker 6 (06:48):
Automatically credit spreads. That's where his eye was headed. How
about for you what stood out to you in terms
of reaction over the course of that meeting and press conference.
Speaker 7 (06:57):
Well, you know, as a rate strategist, I have to
talk about the Treasury mark and what's going on the rate.
So you know, the fact that we bear steepened a
little bit, I think suggests that the market was more
or less prepared for a fifty basis point cup. But importantly,
they're worried that maybe the Fed's making a policy mistake
at least a little bit, right, And I suspect that
once the dust settles, it's we're basically going to have
(07:18):
very little movement in the long end of the yield curve,
but two year yields are probably going to continue to
drift lower as the Fed continues to cut interest right,
so you get that bull steepening we've been talking about.
Speaker 2 (07:27):
Before we go real quickly, guys, first to you, Brent,
ten seconds, what's your next focal point in terms of
the markets.
Speaker 8 (07:35):
And then I think it's all about inflation and the
unemployment rate. Where do we go from here? And is
the FED too late? I don't think inflation is dead
if the FED actually does go to AGGRESSI if you're
still late in the economic cycle and the unempleyment rate
is still low even though they've wriggled a little bit
more slack and you're seeing wage pressures pop up still around,
such as Boeing and Amazon raising wages in the past
few weeks, are trying to so I think that's stillt there.
Speaker 3 (07:56):
Iris ten seconds for your next vocal point.
Speaker 9 (07:59):
It's the same.
Speaker 7 (08:00):
It has to be the economy, right, all of the
main things that we look at.
Speaker 2 (08:03):
I feel like, bottom line, we're still data dependent.
Speaker 3 (08:05):
I mean, does that.
Speaker 6 (08:06):
Every 'ch meeting by meeting and data dependent, we'll have
the same clarion every meeting.
Speaker 3 (08:10):
J Powell like right, very clear on that.
Speaker 2 (08:12):
So appreciated our Jersey of Bloomberg Intelligence Brunch shouty.
Speaker 3 (08:15):
Of course, over at Northwestern Mutual Arts.
Speaker 1 (08:18):
You're listening to the Bloomberg Business Week podcast. Catch us
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Speaker 2 (08:31):
All right, this story definitely catching our attention. It's a
Bloomberg exclusive, a most read story on the Bloomberg about
the billionaire hedge funder one of the best no names,
I would say in the hedge fund universe. Dominated David
the industry for three decades. He's had some very public
ups and downs, owns a major sports team, and has
even been brought to life in a streaming series.
Speaker 6 (08:51):
Yes, Steve Cohen, who currently runs Point seventy two announcing
he's going to be stepping away from sort of day
to day trading at the firm, and Kathy Burton has
written about that for here at Bloomberg. Cathy joins us
now in the interactive Brokers to you, Kathy, Great to
see you, Nice to see you. What prompted this move?
I mean, I was saying to Carol earlier. He's done
this before, He's threatened to do this, He's walked away
from day to day trading before. Why now and is
(09:12):
this time do you think different than in the past.
Speaker 10 (09:15):
It's really hard to say, because he has done it before.
He said, Okay, I'm not going to trade anymore. But
he is very much a trading an animal of the
markets and always has been, and so it's possible that
if things get really crazy around the election, he could
step in again. But I think really the idea is
that he thinks that he does more good mentoring people
(09:40):
working with other traders than doing his own book, especially
because the firm is so big.
Speaker 9 (09:44):
Now.
Speaker 3 (09:45):
Does his investors agree with that?
Speaker 10 (09:48):
Yes, because I think over he's been cutting back.
Speaker 3 (09:53):
Okay, like even a year.
Speaker 10 (09:54):
Ago this time of year, he apparently was trading less
than he had for so and people are pretty happy
with the performance, and so they think it's big enough.
Now there's enough teams. It's not like just old school
SAC when he was running the show.
Speaker 6 (10:11):
For those who don't know, how big a firm is
this and sort of how much is it him? How
much is it Steve Cohens from? How much influence does
he have? I know it's a co cio position. What's
the relationship like with the other cio and so how
much is has he been running it and calling the shots?
Speaker 10 (10:26):
Well, I think if you go back to when it
was SAC, he was calling a lot of the shots
it was his firm, but now I think he really
does it, Like his portfolio would have been a tiny
percentage of the thirty five billion dollars that they run.
Speaker 6 (10:40):
I was going to ask how big the book is,
I mean, is it a big?
Speaker 3 (10:42):
Yeah?
Speaker 5 (10:42):
Exactly speaking, I suppose.
Speaker 10 (10:44):
So if he's even if he's doing you know, a
billion dollars or something, that's still not that much percentage
wise of thirty five billion dollar firm. And I doubt
it was even that large.
Speaker 2 (10:54):
But one of the things I love about you got
your reporting, is that you remind us of kind of
who he was and even as a I mean, he
does really love to trade.
Speaker 3 (11:03):
Which kind of goes from how we started that.
Speaker 2 (11:05):
You know, you do wonder if he'll be drawn back
into it remind us kind of about who he was
even as a young kid, and is kind of love
of the stock market.
Speaker 10 (11:12):
Yeah, well we were. We were told when we wrote
a profile of him back in the day that he
would when he was up Wharton, he would actually leave
class and go and just.
Speaker 3 (11:21):
Watch the tape.
Speaker 5 (11:22):
He'd skip class to do it.
Speaker 10 (11:23):
Yeah, and he just got a feeling of how Stodox
would move.
Speaker 6 (11:28):
There was this period when there was a sentiment the
sec he stepped back. He wasn't managing.
Speaker 3 (11:32):
Money for that's great?
Speaker 6 (11:34):
No, what was that like? What do we know what
that was like for him? And sort of I mean
you hit on this in the story. It is a
remarkable renaissance here to go from that. And you know
he was never himself charged with anything or tried. But
to have that kind of rebirth, how astonishing is that?
And how did he manage.
Speaker 5 (11:50):
It to do that?
Speaker 9 (11:52):
It is astonishing.
Speaker 10 (11:53):
I mean, I think it helped that even when he
opened the doors again, he's had ten billion dollars, which
is a pretty big amount of money.
Speaker 3 (12:01):
It was all his, yeah, and.
Speaker 10 (12:03):
Then over time just started to replace it, and it
took him a while. I think initially it was more
individual wealthy people and then became more institutional even over
time as more time passed, he got bigger clients and
that's how he got to thirty five billion.
Speaker 2 (12:20):
He's been such a dominant force in the industry. But
he's not necessarily somebody, right that goes on camera a lot.
Speaker 3 (12:26):
He's very quiet, right, Yes, Yeah.
Speaker 10 (12:29):
He's not someone like Bill Lackman who goes and tweeting
every day. And I mean the only first time he
went on social media was after he bought the Mets, right,
and it was all about baseball.
Speaker 2 (12:39):
Well, what does it mean kind of about you say,
he's sixty eight years old? Like I do think about
he did buy the Mets, right, like where he is
in his world that maybe this time of stepping back
is something more official, because he's thinking about I don't know,
you know, you do get to a point where you
get older, are you're thinking about?
Speaker 3 (12:54):
Okay, what's left? As one guest one.
Speaker 2 (12:56):
Sent to me, you start to count how many more
summers do I have left? And I do I wonder
you're much more familiar with him than most of us,
Like what he might be thinking, Well, I going eight?
Speaker 3 (13:06):
Am I thinking too much about this?
Speaker 10 (13:08):
I do think that he's still very very involved in
the business. I mean, I think the cocio thing is
for real. It's just this maybe the minutia of the markets,
that's the thing that he's stepping away from. And like
I said, people, even people who know him very well,
say he said this before.
Speaker 6 (13:28):
He's such a well known name and figure. And there's
a line in the piece that jumped out to me.
He said, this move is a litmus test to determine
whether multi strategy firms can thrive beyond their legendary founders.
You invoked the lackman a moment to go mean, there's
a handful of people like this, well known hedge fund managers.
Talk a bit more about kind of the overall symbolism
or importance of this for the industry. Again, there is
(13:50):
this group who have been in the business now for
many decades. I'm curious sort of is there much in
common among all of them as they think about what
the future might be. As we've seen some step back,
how's that gone in the passing? How difficult is it
to move away from being such a name brand as
a cross way of putting it, but being so associated
with a particular firm.
Speaker 10 (14:09):
I think that actually, for point seventy two, it would
be easier if Steve went away completely, which, as I said,
is not you know, he's still super involved. But I
kind of somehow see that at that firm it might
be easier than at a place like Citadel, where Ken
(14:29):
is such a big part of that firm.
Speaker 2 (14:32):
Really, yeah, I always think he's just so Cohen is
so identified right with the success of his firm.
Speaker 10 (14:40):
No but because I think the whole experience that happened
of restarting again and becoming much more institutionalized, and that
was only ten ish years.
Speaker 2 (14:51):
Ago, right, I want to ask you if you could
sit down with Cohen right now, or maybe you did.
You don't have to reveal like what is top of
mind for you about kind of what you would want
to know from him.
Speaker 10 (15:05):
I would like to know whether I really, like I
kind of doubt that he's going to stay away from trading,
So I would like to ask him what would what
would bring him back? Yeah, and uh, if he you know,
the whole idea of buying the Mets and being super
(15:26):
involved in in the bets and caring about that, if
he could imagine a day when he would just leave
the business and and you know, focus on other things
like baseball, which.
Speaker 5 (15:37):
I would like to do as well.
Speaker 3 (15:38):
But fair enough.
Speaker 6 (15:40):
You having covered SAC and and points to two, you know,
I think a lot of the criticism and indeed like
scrutiny of SAC was about the culture of that of
that firm. How different are the two cultures of these places.
So in that reinvention, yes, it was kind of building
from the ground up. If the ground is ten billion dollars.
Speaker 5 (15:56):
But how different are the.
Speaker 6 (15:58):
Cultures of the first shop and this one. How has
he kind of changed the way that this one operates
versus that one.
Speaker 10 (16:05):
Well, Steve was definitely much more involved in the first
one in trading. He sat in the middle of the
trading room and talk on the the you know, microphone
all day, and he was very close to all the people.
I remember someone telling me a story of one guy
(16:26):
who worked there for years coming home and Steve was
on his couch like watching golf.
Speaker 3 (16:32):
Oh my god, are you serious?
Speaker 9 (16:36):
How does that happen?
Speaker 10 (16:39):
So he was like, this is really really back in
the day when it was a small firm.
Speaker 11 (16:44):
What there's a book here about the inner working, and
now I think it's it's a place where there's so
many more people.
Speaker 3 (16:55):
Yea.
Speaker 10 (16:56):
And I mean they were really a band because when
he left after ground Till and started his own firm,
it was a handful of people.
Speaker 2 (17:04):
You know. I said that, you know, he was the
inspiration for I don't know there's an inspiration, but certainly
anybody who watched Billions, right, we were like, it's Steve
Cohen just got thirty seconds left here. I mean, watching
that I mean, do you think they got a few
things right in a big way about Steve Cohen?
Speaker 7 (17:18):
Uh?
Speaker 10 (17:19):
No, I think that.
Speaker 11 (17:20):
Did you watch it?
Speaker 3 (17:20):
Do you know? Since you do have conversations?
Speaker 10 (17:24):
I stopped watching it a few seasons ago.
Speaker 3 (17:27):
Did Steve Cohen watch it?
Speaker 9 (17:29):
Oh? Did he watch it?
Speaker 10 (17:31):
I don't know. I he must have looked at it,
or some people looked at it. But it became that's
really more amalgamation of so many stories from the hedge
fund industry.
Speaker 2 (17:42):
I know, we just like to make that jump, you know.
The inspiration Kathy Burton. Thank you so much, Bloomberg News
hedge fund reporter Kathy Burton, as we said, an exclusive
and among the most read on the Bloomberg. And maybe
he'll come back, Maybe he won't. Maybe we'll have another
story like this.
Speaker 5 (17:55):
In the year the computer draws him back.
Speaker 10 (17:58):
Oh my god.
Speaker 1 (18:01):
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Speaker 2 (18:20):
We want to get to what one thing Bloomberg Business
Week is so well known for. It's closely followed and
often cited ranking of business schools.
Speaker 6 (18:27):
Yes, it's out now. I did not go to business school.
I don't know that we can talk about that. Is
it worth me going to business school? We'll decide this
afternoon to Meetrikesinde is with us here in the studio,
and maybe we should surf It was just like the methodology,
this is your world.
Speaker 5 (18:41):
You're immersed in it. There are other rankings of business schools.
I'm breaking no.
Speaker 6 (18:44):
News there by saying that how is this ranking, this
methodology different, and so what are you looking at.
Speaker 9 (18:51):
It's a very complicated methodology.
Speaker 5 (18:52):
I will don't give it away to trade it, pil.
Speaker 9 (18:54):
It down to the few key points.
Speaker 12 (18:56):
Several of the other rankings also do this, but we
serve a student, alums and employers.
Speaker 9 (19:01):
We combine that.
Speaker 12 (19:02):
With data that the schools also report to us. So
we are taking in a lot of data. We're not
going out there and you know, seeking it out. And
we combine all that data with a variety of formulas
that fall under five indexes that we've developed.
Speaker 6 (19:17):
And that's the greatest weight compensation.
Speaker 12 (19:20):
For example, is one that gets a lot of weight
and more than others because compensation. People misunderstand us when
we say this. They think we're saying it's the only
thing that motivates B school students.
Speaker 9 (19:30):
No, it is not the only thing.
Speaker 12 (19:32):
But when you talk about the fact that you want
to grow your career, you want to go into leadership. Yes,
even if you're making a switch, even if you're looking
in nonprofit or social impact or what have you grown
your career and expanding and being a leader means you're
probably going to make more money and you're looking to
do that. You're spending a lot of money on business school.
You do want to be able to recoup that expense also, which,
(19:53):
by the way, we have a new tool that helps
you do that assess it our ROI tool.
Speaker 9 (19:57):
We could talk about that another time.
Speaker 6 (19:58):
Yesterday when this came out, I thought, that's amazing.
Speaker 12 (20:00):
But that is a very quick, quick, quick look at
the at the way that we do this.
Speaker 2 (20:05):
Having said that and having worked with you guys over
the years, it feels like.
Speaker 3 (20:10):
The number one spot.
Speaker 2 (20:11):
It's really hard to unseat the one who seems to
keep coming back to Stanford.
Speaker 9 (20:16):
It's very pretty it is it is very pretty. It's
a it's a it's a great place.
Speaker 5 (20:21):
You know.
Speaker 12 (20:21):
We have these indexes that it just consistently is doing
very well on almost all of them. Especially Entrepreneurship is
a real big standout for Stanford. Learning is a real
big standout. They benefit from the people in the tech
industry and other industries that are out there, from many
entrepreneurs connected to.
Speaker 9 (20:37):
The school, teaching at the school, alums of the school.
It is a place people want to go.
Speaker 12 (20:42):
I think they rightly sow a sense that they are
going to do quite well if they go to Stanford
Business School. But many other schools also offer a lot,
and it's hard. I don't know how to answer that question.
We're all waiting for the year when Stanford won't be
number one. Stanford nothing against Stanford, sorry don't, but you.
Speaker 2 (21:02):
Know, I'll be frustrating for some of the other schools
that are out there, right they.
Speaker 12 (21:04):
Just really can be if we look at the numbers
and we really break it down though, the differences among
the top twenty matter very small numbers and at the
end of the day, you know, use an ROI tool,
but think about also, we have profiles that are rolling
out later this week that are in Business Week's issue
October issue, and we talked to recent grads about really,
why did you go? What was it about this degree
(21:27):
that you felt would be useful? And the theme among
them all is that they really like stopped and carefully thought,
this is the career I'm going after. I'm missing these skills.
How might I get them? What's the fastest way I'm
going to get those skills? Will that enable me to
maybe get the job I want?
Speaker 9 (21:43):
I'm going to business school.
Speaker 12 (21:44):
If you can't answer certain questions like that, maybe business
school is not for you.
Speaker 5 (21:48):
Our administer is able to do that.
Speaker 6 (21:50):
I mean, over the course of doing this, you talk
to a lot of leaders of these institutions. There's been
some turnover as you know, yeah, yeah, in the head
and the leadership of some of these business schools.
Speaker 5 (21:58):
How do they answer some of those questions?
Speaker 6 (21:59):
I know A big issue is it's a huge agreement,
Carol asking if I've gone, I don't think that I
could go now for two years full time, give give
up whatever.
Speaker 12 (22:08):
But here, David, there are executive programs that so many
of the schools now driven by the modifications they made
and the innovations because of COVID decided, you know what
flexibility is something people really like, so we can break up.
We do still have a full time two year program,
but if you, David, would like to do something that's
part time that's very specifically focused on let's say you
(22:30):
really are you want to become like a data analysis whiz,
and you know, the specialty programs are the ones that
have done very well. How can the schools answer those questions?
The schools can't, but the schools are very focused on
trying in the recruiting phase and in when they're going
out and talking to prospects to really get people to
get to that point where they are grappling with those
(22:51):
questions and answering them, because I don't think the schools
want students that don't know what they're doing in the program,
and the students definitely don't want to be there if
they don't know what they're doing.
Speaker 2 (23:00):
Umber of folks who are going after MBA's up down same, I.
Speaker 12 (23:06):
Would say it seems to me about the same, and
it depends on where they're coming from. We've had some
issue with US applications being.
Speaker 9 (23:14):
Down over the last ten years.
Speaker 12 (23:15):
We did a big story and analysis of that just
about a year ago. Those numbers are slightly up.
Speaker 9 (23:21):
Now.
Speaker 12 (23:23):
You know, international became a very big focus at many
schools in terms of recruiting and how they're going to
keep up the level of selectivity while you know, not
having to expand how many people there they're accepting that
don't quite have the qualifications they want. But I don't
think there's been a huge dramatic difference in recent years,
and I think some of what we're seeing is again
(23:46):
ways of addressing what the students want that maybe is
appealing to people and making up for that.
Speaker 5 (23:51):
Sort of times. So we can't get into this ROI calculat,
but it's very cool. It's on the site. Everyone should
check that out.
Speaker 6 (23:56):
And then also we didn't get into you look at
international schools as well, so this is not to do
focused then thirty seconds left. I mean that's challenging, but
you do Yeoman's work.
Speaker 12 (24:04):
Yes, well it's a lot of work, but really hats
off to the data analysts on the team here that
are doing the hard work in this and then we're
out there talking to people international. Indeed, this year I
amd you had David Bach in here. I don't know
if you recall that he is the newly sort of
installed leader of that institution based in laws on Switzerland.
Speaker 9 (24:25):
Look him up. Look up the interview that Carol and
Tim did. Look at what they're doing.
Speaker 3 (24:28):
You did with us, well, he did?
Speaker 9 (24:31):
I talk to him.
Speaker 12 (24:31):
I don't know, but I talked to him after. Very
interesting person who features in our story also about how
CEOs should avoid the traps of our very highly politicized world.
Speaker 9 (24:41):
Right now.
Speaker 2 (24:42):
Dimitri Cassanidi's great stuff. As always Bloomberg News Senior editor.
Check it out online on the Bloomberg and the new
issue Bloomberg Business Week.
Speaker 1 (24:49):
This is the Bloomberg Business Week podcast of a Little
Apple and Spotify and anywhere else you hit your podcast.
Listen live week day 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 and always on the Bloomberg
(25:09):
terminal
Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg business
Week inside from the reporters and editors who bring you
America's most trusted business magazine, plus global business, finance and
tech news. The Bloomberg Business Week Podcast with Carol Messer
(00:23):
and Tim Stenebeck from Bloomberg Radio.
Speaker 2 (00:27):
All right, let's get to what you really want to
hear about, and that is, of course, the FED decision today.
Speaker 3 (00:31):
Fit your J.
Speaker 2 (00:32):
Powell and his press conference after the decision, highlighting that
labor conditions are pretty close to max employment and yet
continue to cool, which has been a plus to inflation.
Speaker 4 (00:42):
Overall, A broad set of indicators suggests that conditions in
the labor market are now less tight than just before
the pandemic in twenty nineteen. The labor market is not
a source of elevated and inflationary pressures.
Speaker 5 (00:56):
Bring us now, Ira Jersey.
Speaker 6 (00:57):
He is the chief US interest Rate Strategisler Intelligence Spreads shootings,
the chief investment officer at Northwestern Mutual Wealth with us
as well, and I let me.
Speaker 5 (01:04):
Start with you.
Speaker 6 (01:05):
Listen to you before this announcement was made today kind
of followed along on the Top Live blog as all
of this unfolded. You were not one who was, shall
we say, enthusiastic about this twenty five or fifty betting
game that was happening over the course of these last
many days. What stood out to you, both from the
statement that we got today and what FED cheer pals
said there at the end, I was saying, just a
moment ago, he was quick to say that, you know,
this shouldn't shouldn't read this as gospel. What the FED
(01:27):
intends to do here as the year goes on.
Speaker 7 (01:29):
Well, that's always been the case with the dots, particularly
since they've been changing them quite frequently at just about
every single quarterly update that they do with that dot plot.
But I think the near term dots, when you think
about November and December's meeting, you know, they made it
pretty clear that unless something significantly changes with the trends
in the economy and inflation, that you're likely to see
(01:51):
you know, modest cuts going forward, so you know, twenty
five basis points over the next couple of meetings. But
I think that's less important to me. What I was
focused on was what they said they were, where they
said they were going to ultimately, and where they think
they're going to even with the economy not hitting into
a recession, is all the way down to under three
percent on the FED funds rate, And you know, the
(02:13):
market was kind of bifurcated is and remains bifurcated in
thinking maybe the Fed's only going to cut to four percent,
or the Fed's going to cut to two percent. And
the Fed decided just to take the middle ground of
that and say, hey, well what do you think about
two and a half percent. The way they get there,
fed funds rate at three percent and inflation at about
(02:34):
two percent, you're talking about about a one percent, you know,
meaning natural funds rate. And when you look at some
of the models they use, that's just about where they
where those are saying the neutral policy rate should be.
Speaker 3 (02:46):
I got to just follow Ara.
Speaker 2 (02:47):
It felt like a little bit of a surprise, at
least for me, I know, the debate that was going on,
it was kind of we just couldn't talk about it enough,
but it did.
Speaker 3 (02:54):
When I saw the fifty bases points.
Speaker 2 (02:55):
I kind of yelled out in the newsroom like, oh
my God, like, I is there something coming undone. Financial
market conditions I thought were pretty okay, like economy still growing,
corporate profits maybe not as upbeat, like is something wrong
that we're missing or what was the thinking behind the
FED No.
Speaker 7 (03:13):
And there was actually a question in the press conference
to char Powell just about that, you know, if they
had had the August payroll report, would they have cut
in July at the July meeting? And he said he
didn't know, but maybe right so, And that's kind of
how I'm taking this fifty basis point move.
Speaker 5 (03:30):
It's more, hey, we probably should.
Speaker 7 (03:32):
Have gone in July. We want to go slow, so
let's do fifty now to kind of catch up to
where we think we're going to have to be. But importantly,
and you know, as you guys mentioned, you know, as
as Dave just mentioned before that what I said yesterday was, look,
I don't care about twenty five or fifty.
Speaker 5 (03:49):
What I care about is what does he say after that?
Speaker 7 (03:52):
And he said exactly what I thought he would say
if they went fifty, and that said, Hey, we went fifty,
don't expect more fifties anytime soon.
Speaker 6 (04:00):
Brett, let me ask you just about you've been so
good about set since saying that you see warning signs,
serving things that are making you nervous about the state
of the economy. This was a confident FED chair speaking
today about the balance of risks about the jobs market,
feeling like this is the moment they aren't behind the curve.
He was empatic, emphatic about that. Didn't want this to
indicate that they felt like they maybe missed something back
in July. Has today's decision caused you to re evaluate
(04:23):
or see in a new way any of those things
that were giving you pause or concern in the run
up to today's meeting.
Speaker 8 (04:30):
He has to be concerned about the labor market. I
remind you that at Jackson Hole, he said and drew
the line in the sand. We neither seek nor welcome
any further deterioration in the labor market. And so why
did they cut fifty basis points. They cut fifty basis
points because the labor market has been weakening, except for
non farm payrolls, which they continued to point to as
the one shining light in the umployment picture. That was
(04:52):
had cold water thrown on it with the eight eighteen
thousand downturn, and now you're at less than one hundred thousand,
right about one hundred thousand, which is in the margin
of era on non farm payrolls, while the rule they
created back in the day, the SAM rule, has been broken.
And so to me, this is a FED clearly worried
about the labor market and word that they may be
too late to actually cutting and that's why they decided
to take fifty not to twenty five. And that still
(05:13):
remains to me seen whether it's too late or not. Look,
I just don't think that the economy that the FED
is going to land this perfectly. And that's where I'm
a bit fearful in the market because it is priced
more so that they will.
Speaker 2 (05:23):
Yeah, I just asked a gymnast, it's not easy to
like kind of hit a perfect landing, Brett.
Speaker 3 (05:26):
Let me just follow though.
Speaker 2 (05:27):
The equity markets, we saw quite a rally initially after
that fifty basis points. I get that, but we've really
pulled back on that. What does it mean for the
financial markets, the equity play in particular.
Speaker 8 (05:39):
Well, I think it was probably a bit of buyer
rum or sell of the news, if you think about it.
We had those leaks or those perceived leaks on Thursday
and Friday of last week, and then maybe even Monday
this week, and so I think it was a little
bit priced and already look look to me, I think
there's a regime change going on underneath the surface no
matter what. This is where we've been pointing to optionality
in asset classes like small and MidCap, which I think
we're already priced as if there might be a recession
(06:00):
one way or the other. Despite recession or no recession,
soft landing, we thought interest rates would be lower because
we thought the Fed would have to lower rates to
either affect that soft landing, or if we had a recession,
rates would go lower because the economy is looking like
it's at a tipping point. And so to me, that's
where small and midcaps they started rallying versus large caps
or even the bag seven July eleventh, which is the
(06:22):
day after we had a CPR report that was weak
and a jobs report the week before where it was
closing into the some rule. And so that's where I
think there's opportunities for investors who are willing to look
past any near term volatility. It's just an asset classes
that people don't want to own right now, but we
think those are the path forward for investors.
Speaker 6 (06:39):
HI right in the minute we have left here, what
is your reaction to what we saw in markets over
the course of the last hour. I was struck when
Tom Keen as bot Michael of JP Morgan just about
what he's watching for.
Speaker 5 (06:47):
He said, kind of.
Speaker 6 (06:48):
Automatically credit spreads. That's where his eye was headed. How
about for you what stood out to you in terms
of reaction over the course of that meeting and press conference.
Speaker 7 (06:57):
Well, you know, as a rate strategist, I have to
talk about the Treasury mark and what's going on the rate.
So you know, the fact that we bear steepened a
little bit, I think suggests that the market was more
or less prepared for a fifty basis point cup. But importantly,
they're worried that maybe the Fed's making a policy mistake
at least a little bit, right, And I suspect that
once the dust settles, it's we're basically going to have
(07:18):
very little movement in the long end of the yield curve,
but two year yields are probably going to continue to
drift lower as the Fed continues to cut interest right,
so you get that bull steepening we've been talking about.
Speaker 2 (07:27):
Before we go real quickly, guys, first to you, Brent,
ten seconds, what's your next focal point in terms of
the markets.
Speaker 8 (07:35):
And then I think it's all about inflation and the
unemployment rate. Where do we go from here? And is
the FED too late? I don't think inflation is dead
if the FED actually does go to AGGRESSI if you're
still late in the economic cycle and the unempleyment rate
is still low even though they've wriggled a little bit
more slack and you're seeing wage pressures pop up still around,
such as Boeing and Amazon raising wages in the past
few weeks, are trying to so I think that's stillt there.
Speaker 3 (07:56):
Iris ten seconds for your next vocal point.
Speaker 9 (07:59):
It's the same.
Speaker 7 (08:00):
It has to be the economy, right, all of the
main things that we look at.
Speaker 2 (08:03):
I feel like, bottom line, we're still data dependent.
Speaker 3 (08:05):
I mean, does that.
Speaker 6 (08:06):
Every 'ch meeting by meeting and data dependent, we'll have
the same clarion every meeting.
Speaker 3 (08:10):
J Powell like right, very clear on that.
Speaker 2 (08:12):
So appreciated our Jersey of Bloomberg Intelligence Brunch shouty.
Speaker 3 (08:15):
Of course, over at Northwestern Mutual Arts.
Speaker 1 (08:18):
You're listening to the Bloomberg Business Week podcast. Catch us
live weekday afternoons from two to five pm Eastern listen
on Apple car Play and then brout Auto with a
Bloomberg business app or want us live on YouTube?
Speaker 2 (08:31):
All right, this story definitely catching our attention. It's a
Bloomberg exclusive, a most read story on the Bloomberg about
the billionaire hedge funder one of the best no names,
I would say in the hedge fund universe. Dominated David
the industry for three decades. He's had some very public
ups and downs, owns a major sports team, and has
even been brought to life in a streaming series.
Speaker 6 (08:51):
Yes, Steve Cohen, who currently runs Point seventy two announcing
he's going to be stepping away from sort of day
to day trading at the firm, and Kathy Burton has
written about that for here at Bloomberg. Cathy joins us
now in the interactive Brokers to you, Kathy, Great to
see you, Nice to see you. What prompted this move?
I mean, I was saying to Carol earlier. He's done
this before, He's threatened to do this, He's walked away
from day to day trading before. Why now and is
(09:12):
this time do you think different than in the past.
Speaker 10 (09:15):
It's really hard to say, because he has done it before.
He said, Okay, I'm not going to trade anymore. But
he is very much a trading an animal of the
markets and always has been, and so it's possible that
if things get really crazy around the election, he could
step in again. But I think really the idea is
that he thinks that he does more good mentoring people
(09:40):
working with other traders than doing his own book, especially
because the firm is so big.
Speaker 9 (09:44):
Now.
Speaker 3 (09:45):
Does his investors agree with that?
Speaker 10 (09:48):
Yes, because I think over he's been cutting back.
Speaker 3 (09:53):
Okay, like even a year.
Speaker 10 (09:54):
Ago this time of year, he apparently was trading less
than he had for so and people are pretty happy
with the performance, and so they think it's big enough.
Now there's enough teams. It's not like just old school
SAC when he was running the show.
Speaker 6 (10:11):
For those who don't know, how big a firm is
this and sort of how much is it him? How
much is it Steve Cohens from? How much influence does
he have? I know it's a co cio position. What's
the relationship like with the other cio and so how
much is has he been running it and calling the shots?
Speaker 10 (10:26):
Well, I think if you go back to when it
was SAC, he was calling a lot of the shots
it was his firm, but now I think he really
does it, Like his portfolio would have been a tiny
percentage of the thirty five billion dollars that they run.
Speaker 6 (10:40):
I was going to ask how big the book is,
I mean, is it a big?
Speaker 3 (10:42):
Yeah?
Speaker 5 (10:42):
Exactly speaking, I suppose.
Speaker 10 (10:44):
So if he's even if he's doing you know, a
billion dollars or something, that's still not that much percentage
wise of thirty five billion dollar firm. And I doubt
it was even that large.
Speaker 2 (10:54):
But one of the things I love about you got
your reporting, is that you remind us of kind of
who he was and even as a I mean, he
does really love to trade.
Speaker 3 (11:03):
Which kind of goes from how we started that.
Speaker 2 (11:05):
You know, you do wonder if he'll be drawn back
into it remind us kind of about who he was
even as a young kid, and is kind of love
of the stock market.
Speaker 10 (11:12):
Yeah, well we were. We were told when we wrote
a profile of him back in the day that he
would when he was up Wharton, he would actually leave
class and go and just.
Speaker 3 (11:21):
Watch the tape.
Speaker 5 (11:22):
He'd skip class to do it.
Speaker 10 (11:23):
Yeah, and he just got a feeling of how Stodox
would move.
Speaker 6 (11:28):
There was this period when there was a sentiment the
sec he stepped back. He wasn't managing.
Speaker 3 (11:32):
Money for that's great?
Speaker 6 (11:34):
No, what was that like? What do we know what
that was like for him? And sort of I mean
you hit on this in the story. It is a
remarkable renaissance here to go from that. And you know
he was never himself charged with anything or tried. But
to have that kind of rebirth, how astonishing is that?
And how did he manage.
Speaker 5 (11:50):
It to do that?
Speaker 9 (11:52):
It is astonishing.
Speaker 10 (11:53):
I mean, I think it helped that even when he
opened the doors again, he's had ten billion dollars, which
is a pretty big amount of money.
Speaker 3 (12:01):
It was all his, yeah, and.
Speaker 10 (12:03):
Then over time just started to replace it, and it
took him a while. I think initially it was more
individual wealthy people and then became more institutional even over
time as more time passed, he got bigger clients and
that's how he got to thirty five billion.
Speaker 2 (12:20):
He's been such a dominant force in the industry. But
he's not necessarily somebody, right that goes on camera a lot.
Speaker 3 (12:26):
He's very quiet, right, Yes, Yeah.
Speaker 10 (12:29):
He's not someone like Bill Lackman who goes and tweeting
every day. And I mean the only first time he
went on social media was after he bought the Mets, right,
and it was all about baseball.
Speaker 2 (12:39):
Well, what does it mean kind of about you say,
he's sixty eight years old? Like I do think about
he did buy the Mets, right, like where he is
in his world that maybe this time of stepping back
is something more official, because he's thinking about I don't know,
you know, you do get to a point where you
get older, are you're thinking about?
Speaker 3 (12:54):
Okay, what's left? As one guest one.
Speaker 2 (12:56):
Sent to me, you start to count how many more
summers do I have left? And I do I wonder
you're much more familiar with him than most of us,
Like what he might be thinking, Well, I going eight?
Speaker 3 (13:06):
Am I thinking too much about this?
Speaker 10 (13:08):
I do think that he's still very very involved in
the business. I mean, I think the cocio thing is
for real. It's just this maybe the minutia of the markets,
that's the thing that he's stepping away from. And like
I said, people, even people who know him very well,
say he said this before.
Speaker 6 (13:28):
He's such a well known name and figure. And there's
a line in the piece that jumped out to me.
He said, this move is a litmus test to determine
whether multi strategy firms can thrive beyond their legendary founders.
You invoked the lackman a moment to go mean, there's
a handful of people like this, well known hedge fund managers.
Talk a bit more about kind of the overall symbolism
or importance of this for the industry. Again, there is
(13:50):
this group who have been in the business now for
many decades. I'm curious sort of is there much in
common among all of them as they think about what
the future might be. As we've seen some step back,
how's that gone in the passing? How difficult is it
to move away from being such a name brand as
a cross way of putting it, but being so associated
with a particular firm.
Speaker 10 (14:09):
I think that actually, for point seventy two, it would
be easier if Steve went away completely, which, as I said,
is not you know, he's still super involved. But I
kind of somehow see that at that firm it might
be easier than at a place like Citadel, where Ken
(14:29):
is such a big part of that firm.
Speaker 2 (14:32):
Really, yeah, I always think he's just so Cohen is
so identified right with the success of his firm.
Speaker 10 (14:40):
No but because I think the whole experience that happened
of restarting again and becoming much more institutionalized, and that
was only ten ish years.
Speaker 2 (14:51):
Ago, right, I want to ask you if you could
sit down with Cohen right now, or maybe you did.
You don't have to reveal like what is top of
mind for you about kind of what you would want
to know from him.
Speaker 10 (15:05):
I would like to know whether I really, like I
kind of doubt that he's going to stay away from trading,
So I would like to ask him what would what
would bring him back? Yeah, and uh, if he you know,
the whole idea of buying the Mets and being super
(15:26):
involved in in the bets and caring about that, if
he could imagine a day when he would just leave
the business and and you know, focus on other things
like baseball, which.
Speaker 5 (15:37):
I would like to do as well.
Speaker 3 (15:38):
But fair enough.
Speaker 6 (15:40):
You having covered SAC and and points to two, you know,
I think a lot of the criticism and indeed like
scrutiny of SAC was about the culture of that of
that firm. How different are the two cultures of these places.
So in that reinvention, yes, it was kind of building
from the ground up. If the ground is ten billion dollars.
Speaker 5 (15:56):
But how different are the.
Speaker 6 (15:58):
Cultures of the first shop and this one. How has
he kind of changed the way that this one operates
versus that one.
Speaker 10 (16:05):
Well, Steve was definitely much more involved in the first
one in trading. He sat in the middle of the
trading room and talk on the the you know, microphone
all day, and he was very close to all the people.
I remember someone telling me a story of one guy
(16:26):
who worked there for years coming home and Steve was
on his couch like watching golf.
Speaker 3 (16:32):
Oh my god, are you serious?
Speaker 9 (16:36):
How does that happen?
Speaker 10 (16:39):
So he was like, this is really really back in
the day when it was a small firm.
Speaker 11 (16:44):
What there's a book here about the inner working, and
now I think it's it's a place where there's so
many more people.
Speaker 3 (16:55):
Yea.
Speaker 10 (16:56):
And I mean they were really a band because when
he left after ground Till and started his own firm,
it was a handful of people.
Speaker 2 (17:04):
You know. I said that, you know, he was the
inspiration for I don't know there's an inspiration, but certainly
anybody who watched Billions, right, we were like, it's Steve
Cohen just got thirty seconds left here. I mean, watching
that I mean, do you think they got a few
things right in a big way about Steve Cohen?
Speaker 7 (17:18):
Uh?
Speaker 10 (17:19):
No, I think that.
Speaker 11 (17:20):
Did you watch it?
Speaker 3 (17:20):
Do you know? Since you do have conversations?
Speaker 10 (17:24):
I stopped watching it a few seasons ago.
Speaker 3 (17:27):
Did Steve Cohen watch it?
Speaker 9 (17:29):
Oh? Did he watch it?
Speaker 10 (17:31):
I don't know. I he must have looked at it,
or some people looked at it. But it became that's
really more amalgamation of so many stories from the hedge
fund industry.
Speaker 2 (17:42):
I know, we just like to make that jump, you know.
The inspiration Kathy Burton. Thank you so much, Bloomberg News
hedge fund reporter Kathy Burton, as we said, an exclusive
and among the most read on the Bloomberg. And maybe
he'll come back, Maybe he won't. Maybe we'll have another
story like this.
Speaker 5 (17:55):
In the year the computer draws him back.
Speaker 10 (17:58):
Oh my god.
Speaker 1 (18:01):
You're listening to the Bloomberg Business Week podcast. Listen live
each weekday starting at two pm Eastern on applecar Play
and Android Auto with the Bloomberg Business ad. You can
also listen live on Amazon Alexa from our flagship New
York station, Just Say Alexa playing Bloomberg eleven thirty.
Speaker 2 (18:20):
We want to get to what one thing Bloomberg Business
Week is so well known for. It's closely followed and
often cited ranking of business schools.
Speaker 6 (18:27):
Yes, it's out now. I did not go to business school.
I don't know that we can talk about that. Is
it worth me going to business school? We'll decide this
afternoon to Meetrikesinde is with us here in the studio,
and maybe we should surf It was just like the methodology,
this is your world.
Speaker 5 (18:41):
You're immersed in it. There are other rankings of business schools.
I'm breaking no.
Speaker 6 (18:44):
News there by saying that how is this ranking, this
methodology different, and so what are you looking at.
Speaker 9 (18:51):
It's a very complicated methodology.
Speaker 5 (18:52):
I will don't give it away to trade it, pil.
Speaker 9 (18:54):
It down to the few key points.
Speaker 12 (18:56):
Several of the other rankings also do this, but we
serve a student, alums and employers.
Speaker 9 (19:01):
We combine that.
Speaker 12 (19:02):
With data that the schools also report to us. So
we are taking in a lot of data. We're not
going out there and you know, seeking it out. And
we combine all that data with a variety of formulas
that fall under five indexes that we've developed.
Speaker 6 (19:17):
And that's the greatest weight compensation.
Speaker 12 (19:20):
For example, is one that gets a lot of weight
and more than others because compensation. People misunderstand us when
we say this. They think we're saying it's the only
thing that motivates B school students.
Speaker 9 (19:30):
No, it is not the only thing.
Speaker 12 (19:32):
But when you talk about the fact that you want
to grow your career, you want to go into leadership. Yes,
even if you're making a switch, even if you're looking
in nonprofit or social impact or what have you grown
your career and expanding and being a leader means you're
probably going to make more money and you're looking to
do that. You're spending a lot of money on business school.
You do want to be able to recoup that expense also, which,
(19:53):
by the way, we have a new tool that helps
you do that assess it our ROI tool.
Speaker 9 (19:57):
We could talk about that another time.
Speaker 6 (19:58):
Yesterday when this came out, I thought, that's amazing.
Speaker 12 (20:00):
But that is a very quick, quick, quick look at
the at the way that we do this.
Speaker 2 (20:05):
Having said that and having worked with you guys over
the years, it feels like.
Speaker 3 (20:10):
The number one spot.
Speaker 2 (20:11):
It's really hard to unseat the one who seems to
keep coming back to Stanford.
Speaker 9 (20:16):
It's very pretty it is it is very pretty. It's
a it's a it's a great place.
Speaker 5 (20:21):
You know.
Speaker 12 (20:21):
We have these indexes that it just consistently is doing
very well on almost all of them. Especially Entrepreneurship is
a real big standout for Stanford. Learning is a real
big standout. They benefit from the people in the tech
industry and other industries that are out there, from many
entrepreneurs connected to.
Speaker 9 (20:37):
The school, teaching at the school, alums of the school.
It is a place people want to go.
Speaker 12 (20:42):
I think they rightly sow a sense that they are
going to do quite well if they go to Stanford
Business School. But many other schools also offer a lot,
and it's hard. I don't know how to answer that question.
We're all waiting for the year when Stanford won't be
number one. Stanford nothing against Stanford, sorry don't, but you.
Speaker 2 (21:02):
Know, I'll be frustrating for some of the other schools
that are out there, right they.
Speaker 12 (21:04):
Just really can be if we look at the numbers
and we really break it down though, the differences among
the top twenty matter very small numbers and at the
end of the day, you know, use an ROI tool,
but think about also, we have profiles that are rolling
out later this week that are in Business Week's issue
October issue, and we talked to recent grads about really,
why did you go? What was it about this degree
(21:27):
that you felt would be useful? And the theme among
them all is that they really like stopped and carefully thought,
this is the career I'm going after. I'm missing these skills.
How might I get them? What's the fastest way I'm
going to get those skills? Will that enable me to
maybe get the job I want?
Speaker 9 (21:43):
I'm going to business school.
Speaker 12 (21:44):
If you can't answer certain questions like that, maybe business
school is not for you.
Speaker 5 (21:48):
Our administer is able to do that.
Speaker 6 (21:50):
I mean, over the course of doing this, you talk
to a lot of leaders of these institutions. There's been
some turnover as you know, yeah, yeah, in the head
and the leadership of some of these business schools.
Speaker 5 (21:58):
How do they answer some of those questions?
Speaker 6 (21:59):
I know A big issue is it's a huge agreement,
Carol asking if I've gone, I don't think that I
could go now for two years full time, give give
up whatever.
Speaker 12 (22:08):
But here, David, there are executive programs that so many
of the schools now driven by the modifications they made
and the innovations because of COVID decided, you know what
flexibility is something people really like, so we can break up.
We do still have a full time two year program,
but if you, David, would like to do something that's
part time that's very specifically focused on let's say you
(22:30):
really are you want to become like a data analysis whiz,
and you know, the specialty programs are the ones that
have done very well. How can the schools answer those questions?
The schools can't, but the schools are very focused on
trying in the recruiting phase and in when they're going
out and talking to prospects to really get people to
get to that point where they are grappling with those
(22:51):
questions and answering them, because I don't think the schools
want students that don't know what they're doing in the program,
and the students definitely don't want to be there if
they don't know what they're doing.
Speaker 2 (23:00):
Umber of folks who are going after MBA's up down same, I.
Speaker 12 (23:06):
Would say it seems to me about the same, and
it depends on where they're coming from. We've had some
issue with US applications being.
Speaker 9 (23:14):
Down over the last ten years.
Speaker 12 (23:15):
We did a big story and analysis of that just
about a year ago. Those numbers are slightly up.
Speaker 9 (23:21):
Now.
Speaker 12 (23:23):
You know, international became a very big focus at many
schools in terms of recruiting and how they're going to
keep up the level of selectivity while you know, not
having to expand how many people there they're accepting that
don't quite have the qualifications they want. But I don't
think there's been a huge dramatic difference in recent years,
and I think some of what we're seeing is again
(23:46):
ways of addressing what the students want that maybe is
appealing to people and making up for that.
Speaker 5 (23:51):
Sort of times. So we can't get into this ROI calculat,
but it's very cool. It's on the site. Everyone should
check that out.
Speaker 6 (23:56):
And then also we didn't get into you look at
international schools as well, so this is not to do
focused then thirty seconds left. I mean that's challenging, but
you do Yeoman's work.
Speaker 12 (24:04):
Yes, well it's a lot of work, but really hats
off to the data analysts on the team here that
are doing the hard work in this and then we're
out there talking to people international. Indeed, this year I
amd you had David Bach in here. I don't know
if you recall that he is the newly sort of
installed leader of that institution based in laws on Switzerland.
Speaker 9 (24:25):
Look him up. Look up the interview that Carol and
Tim did. Look at what they're doing.
Speaker 3 (24:28):
You did with us, well, he did?
Speaker 9 (24:31):
I talk to him.
Speaker 12 (24:31):
I don't know, but I talked to him after. Very
interesting person who features in our story also about how
CEOs should avoid the traps of our very highly politicized world.
Speaker 9 (24:41):
Right now.
Speaker 2 (24:42):
Dimitri Cassanidi's great stuff. As always Bloomberg News Senior editor.
Check it out online on the Bloomberg and the new
issue Bloomberg Business Week.
Speaker 1 (24:49):
This is the Bloomberg Business Week podcast of a Little
Apple and Spotify and anywhere else you hit your podcast.
Listen live week day 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 and always on the Bloomberg
(25:09):
terminal
Hosts And Creators
Tim Stenovec
Carol Massar
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