September 19, 2025 • 43 mins
Watch Carol and Tim LIVE every day on YouTube: http://bit.ly/3vTiACF.
Senator Ted Cruz has become the most prominent Republican to criticize Federal Communications Commission Chair Brendan Carr, saying President Donald Trump’s top media regulator resorted to “mafioso” behavior to pressure Disney Corp.’s ABC to remove late night host Jimmy Kimmel.
Cruz, the chairman of the Commerce Committee and a frequent defender of the Trump administration, took to his podcast in the wake of Kimmel’s indefinite suspension this week to describe Carr’s actions as “dangerous.”
Carr earlier in the week implied on another podcast that ABC could face serious consequences from the government over Kimmel’s remarks about the shooting of conservative activist Charlie Kirk. Only hours later, ABC pulled Kimmel’s show.
Cruz said he doesn’t believe the government should punish media companies over political disagreements.
Today's show features:
- Bloomberg News Media Reporter Hannah Miller on President Trump’s comments about pulling broadcast licenses from outlets he feels are covering him unfairly
- Annalena Baerbock, President of the United Nations General Assembly, on the UN’s role in a time of heightened geopolitical tensions
- Bloomberg News White House Correspondent Lauren Dezenski on Friday’s phone call between President Donald Trump and China’s Xi Jinping, and the planned meeting between the two leaders
- Walter Todd III, President and Chief Investment Officer of Greenwood Capital Associates, on whether the bull market will continue
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 (00:02):
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):
Well A Late Night Comics continued unfamiliar terrain last night
as they hosted their first shows after ABC suspended Jimmy
Kimmel's program over comments that he made about the assassination
of conservative activist Charlie kirk Hi.
Speaker 3 (00:44):
I still have a show though, right, Okay. Yesterday, after
threats from Trump's FCC chair, ABC yanked Kimmel off the
air indefinitely. That is blatant censorship. We have another fun, hilarious,
administration compliant show. I do know Jimmy Kimmel and he's
(01:05):
a decent, funny and loving guy, and I hope he
comes back, all right, That, of course with Stephen Colbert
or John Stewart Jimmy fallon last night, which got us
all thinking about how US presidents have long had adversarial
relationships with the media, news media, comedians, hollywooded more media altogether.
Writing about all of this is Bloomberg's Hannah Miller. She's
(01:26):
Bloomberg News media reporter and she joins us here in
our Bloomberg Interactive Broker's studio. So, Hannah, you know, presidents
have had difficult relationships with media. It's the job of
a journalist, after all, to hold power to account. Is
what's happening different? Like, how do we make sense of
what's happening right now?
Speaker 4 (01:45):
Yeah, I mean this administration has a particularly contentious relationship
with the media. Trump is very outspoken about how unhappy
he is with the way the media treats him, whether
it's news media or late night enter payment hosts. There
have been multiple lawsuits of major news organizations. We've even
(02:05):
seen settlements come out of some of those. There's also
been federal cuts to funding for public radio and public television.
Speaker 2 (02:13):
It also comes at a time, though, where the media
industry is under pressure. I mean, it kind of feels
meta just talking about this in one of the traditional
forms of media. But we're also you know, we also
embrace new media here, and I think everybody is doing that.
This is not you know, the nineteen fifties or nineteen sixties,
before the advent of cable, before the advent of the smartphone,
(02:34):
where you know, tens of millions of Americans tuned into
these three networks every single night. Does that change the
story at all?
Speaker 4 (02:42):
Yeah, I mean, I think part of it is just
how fragmented media is. You have people tuning in on
social media, sharing clips. People can dash off their thoughts
within seconds and have millions of people see them. That's
just up the stakes here. You know, Trump is very
closely following all all these different trends. We know he's
someone very tuned in to what's happening on television, what's
(03:05):
happening on social media. So it's unsurprising, you know that
he is making these comments and taking these steps.
Speaker 3 (03:12):
So what does it mean for anybody who's running a
media company, Because I do feel like what we've seen
are deals done, money paid. I feel like in many ways,
the heads of media companies are being pretty quiet in
this environment, but actions are certainly being taken. I can
only imagine what's going on behind closed doors. What are
you hearing?
Speaker 4 (03:32):
Yeah, I mean a lot of industry watchers have commented
on capitulation. You know that media execs are they're fearful
of standing up to Trump. A lot of them have
business stakes at play. Even with this recent thing with
Jimmy Kimmel. You know, Next Star it needs FCC approval
(03:53):
for its takeover of Tegna, and that's you know, that
could be a reason why it put pressure on these
ABC affiliated networks too, you know, not show Kimmel. So yeah,
that's something that we have to take into consideration that
there are business stakes at play here.
Speaker 3 (04:10):
Do we truly understand the course of events of pressure
Kimmel's comments, car of the FCC chair.
Speaker 2 (04:18):
Pocast with Benny Johnson, and then right and then like.
Speaker 3 (04:21):
The affiliates coming in, Like I'm trying to understand, like
do we actually because you look at this story, we
talk about it so much in the newsroom. Is it
freedom of speech? Is it what Jimmy Kimmel said? Is
it folks anticipating kind of getting on the good side
of the FCC. Some would say, like do we kind
of understand exactly how this all laid out?
Speaker 4 (04:39):
Yeah, it is very It can be very muddled, and
a lot of these business entities will step forward and say, hey,
These are two completely you know, separate issues. We're thinking
about this from an economic terms, We're thinking about this
from viewership. They cite ratings as the reason why they're
making these decisions. What we do know is that Brendan Carr,
you know, he is also very outspoken on social media.
He does these podcast and he, you know, implied that
(05:03):
something would happen if no steps were taken against Kimmel.
Speaker 2 (05:07):
You know, one thing that I've thought a lot about
in recent days is the power of the FCC and
the power of the government when it comes to traditional
media versus what what happens in social media. And we
actually saw during and we've this has been reported out
that even tech companies during the Biden administration faced pressure
(05:28):
over what they show, what they showed on social media
when it came to the COVID pandemic, for example. So
even in a world where there isn't necessarily a government
agency that is responsible for regulating some sort of medium,
there still can be pressure even on tech companies.
Speaker 5 (05:49):
This is not like tech.
Speaker 2 (05:50):
Companies and it's not like it's not like, Okay, well
people are going to flee traditional because of worries about regulations.
There's also concerns about impact from government officials on these
other companies too.
Speaker 3 (06:02):
Correct.
Speaker 4 (06:02):
Yeah, this is also very much a tech story, and
we've seen you know, debates about misinformation, you know, who
has the right to say what is published on the internet,
what is shared on social media. We've seen also a
lot of tech leaders align themselves with the Trump administration,
you know, appearing ad events things like that. There have
been significant changes to x under Elon Musk's ownership, so
(06:27):
it's interesting to kind of see some of that trickle
over now to traditional media.
Speaker 3 (06:31):
You know, FCC Commissioner Anagomez was on Bloomberg Technology today.
We should point out she's been an outspoken critic of
the FCC chair and President Trump's attacks on the media.
But you did join the gang, and we just want
to play it out for everybody listening.
Speaker 5 (06:46):
Yes we can.
Speaker 6 (06:46):
We can initiate an investigation based on a complaint that
is filed. We can also initiate it ourselves. But let
me be clear, there is no basis for revoking any
licenses because of the Jimmy Kimmel content or because of
normal editorial decisions from a broadcaster. The last time I
(07:07):
can think of that, we revoked a license was for
failure to air a particular broadcaster for more than a year.
Speaker 3 (07:14):
Okay, that again was FCC Commissioner Anna Gomez earlier with
the Bloomberg Technology b Tech Gang on Bloomberg TV. I
do want to point out that the FCC Chair Brendan
Carr has said he's talked about when you've got an
FCC license, it comes with an obligation to operate in
the public interest, and he likened Jimmy Kimmel's comments to
(07:34):
maybe news distortion, which is against FCC's rules for broadcasters.
But there does feel like two sides to the coin here,
and you know, and then you throw in freedom of speech.
I mean, there's a lot here to be kind of
continually unpacked. I feel like, where do you think this
all goes? Yeah.
Speaker 4 (07:53):
I actually got to see Commissioner Gomez speak yesterday at
a conference, and she was very adamant in what she
had to say and that you know, these threats are empty,
that there's this coercive element here to making these businesses
aligned to a single viewpoint. So it's and she's talked
about how scary this is and what's happening, and I.
Speaker 3 (08:16):
Believe she was appointed by President Biden.
Speaker 5 (08:18):
Is that correct or?
Speaker 3 (08:20):
Yes, so she has to be fair and fully transparent.
Speaker 4 (08:24):
Yes, she's fully embraced her role. But she said, you
know a lot of the times this is from yesterday,
she's in the dark. You know, she doesn't know that
car is going to go out there and make these comments.
So she sees herself as an opposing voice.
Speaker 3 (08:37):
Makes me wonder about again going back to CEOs who
are running media companies if they feel like they're in
the dark.
Speaker 2 (08:42):
So that's exactly where I want to go. Just in
the last minute we have with you because you and
Lucas Shaw have this great, big takeout for Bloomberg Business Week.
It's all about David Ellison and the pressure that he faces.
Just give us forty seconds on this story.
Speaker 4 (08:54):
Yeah, this is a really fun story to write. The
Ellison family has increasingly become a power, full force in media.
We're seeing that with TikTok, We're seeing that with Paramount.
We're seeing that, you know, Paramount potentially consider submitting a
bid to buy Warner Brothers Discovery. There is so much
happening here, so it was very interesting to dive into
David Elson's background. You know, his time at Skydance building
(09:15):
out that company and what he envisions for Paramount going forward.
He wants Paramount to be very technologically forward. He's kind
of modeling it, you know, off the Silicon Valley startup culture.
He wants to make changes fast too, So it's going
to be exciting to see what he has in store.
Speaker 3 (09:31):
Friendly with the Trump administration just quickly.
Speaker 4 (09:33):
Yeah, I mean they've been to UFC matches together.
Speaker 3 (09:36):
Okay, so it's just you know, all kind of fitting
together and stuff. Anyway, this is a great read. Highly
recommend everybody head to the Bloomberg or Bloomberg dot com
to read the reporting by Hannah Miller and Lucas Shaw
on what's going on at Paramount all of this stuff.
Hannah Miller is media reporter a Bloomberg News she rocks.
Thank you.
Speaker 2 (09:53):
Stay with us more from Bloomberg Business Week Daily coming
up after this.
Speaker 1 (10:01):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
us live weekday afternoons from two to five e's. During
that listen on Apple Karplay and Android Otto with the
Bloomberg Business app, or watch us live on YouTube.
Speaker 3 (10:14):
Carol Master along with Tim Stenevik live here at Bloomberg
Headquarters in New York City. Well, the eightieth session of
the You and General Assembly is underway here in the city,
with the first day of the high level General Debate
happening next week. Former German Foreign Minister and Alina Bherbach
was elected President of the General Assemblies eightieth session on
June second. Her appointment comes as the regional group that
(10:35):
includes Western Europe takes its turn at the helm of
the World body. And we are delighted to have her
here in studio. President Mahrbach, so nice to have you
here with us. It's a shame there's nothing going on
in the world to talk about. Let's talk about it,
and I'm going to give you a little bit of
a list. Very familiar, I'm sure to you. Russia's war
with Ukraine, now three and a half years old, a
recent incident when Russian drones flew over Poland, Israel, and
(10:59):
Hamas coming up on its second year anniversary. The Tech War,
the trade war China Taiwan question marks President Trump saying
he had a productive call with President g just today.
Two largest economies in the world top of mind for
you as world leaders are gathering here at the UN
this week. It's a lot.
Speaker 7 (11:18):
It's a lot, and it underlines why it needs this
World Parliament, the United Nations more than ever. However, looking
around the world, we are not only in shaky times,
but this institution is under heavy pressure politically and financially,
and therefore we have to reform it. This is the
biggest task for this upcoming year and as well, and
(11:39):
this is what I would like to underline as President
of this General Assembly and the United Nations that if
we wouldn't have the United Nations, we would have to
build it because none of these global challenges you just
mentioned could one.
Speaker 5 (11:52):
Country face alone or even solve alone.
Speaker 7 (11:55):
And this is why the theme of this session is
better together.
Speaker 2 (11:58):
What is your priority in term reform? What is the
number one reform that you intend to accomplish.
Speaker 7 (12:05):
It has to be more efficient. It's a very big organization.
It does incredible work. But all we are talking about
is the failure of the Security Council because, as you mentioned,
the war in Ukraine going on because a permanent member
of the Securitared Council can just put a veto so
many are asking, so if you're not delivering on peace
and security, why does it still matter, but their institutions
(12:28):
like UNITSEV.
Speaker 5 (12:29):
Everybody knows you have.
Speaker 7 (12:30):
Millions of children wouldn't go to school without the UN
UNITSEV one. Twenty five million people would have literally starved
last year if the World Food Program wouldn't have supported them.
Speaker 5 (12:42):
And imagine the COVID pandemic.
Speaker 7 (12:44):
Even the biggest countries like the US, a strong economy
like my country Germany, we could have not fought this
virus alone because COVID didn't have a passport. So you
can only do it together with the help of the
World Health Organization and vaccination going on. But people don't
know about these great successes. So make clear that this
(13:06):
is all the UN and the money goes to the
points where it actually delivers on the people. Is the
biggest task and this is why it needs this reform.
But it needs also the political commitment of leaders. It
needs obviously the funding of member states, and currently especially
the host country is questioning this.
Speaker 3 (13:26):
What can you tell us about funding and where you
are and how much it's difficult and what more could
you use and what do you need?
Speaker 7 (13:35):
Well, every country should pay their obligation, and the United
States has been one of the biggest donors. I'm also
always underlining this Germany has for a long time been
the second biggest DONUS. But it's in the self interest
of every country itself because if we would not have
these kind of organizations imagine also like terrorism, how would
(13:55):
we fight it together. But at the moment there have
been the announcement the American administration that they might stop everything,
so we are in the depths of.
Speaker 5 (14:05):
Discussion like peacekeeping.
Speaker 7 (14:08):
If we want to keep peacekeeping going on, then we
need also the funding from the US side.
Speaker 2 (14:13):
How do you look at the US right now as
a partner if you indeed do look at the US
as a partner right.
Speaker 7 (14:19):
Now well as a transatlantic not only friend, but like
my country owes to the American people, not only that
we could recover after the Second World War, the biggest
horror my country did around the world, actually also the
reason why this United Nation was founded, and this is
why Germany is so committed. But also lately reunification. Yeah
(14:41):
that East and Western Germany came together again and we
are these countries are altogether in NATO. So it's the
understanding of one for all and all for one. And
this is why I think the transatlanting bond has to
be stronger than ever before. But obviously they are also
at these kinds of times different views on different topic.
(15:01):
And this is why the United Nations comes into play.
This is a place where you talk about also disagreements.
Speaker 3 (15:08):
Well, but on that and I want to kind of
pursue the US role. I mean, what would you ask
of the United States now, because you know there is
certainly pushback and we've got a president who at times
has said We've done a lot as a nation. What
more though, and how important is it for the US
to continue to take a leader leadership role. We've talked
a lot about the importance of soft power to globally,
(15:30):
but how important is it that the US take a
leadership role here when it comes to the UN.
Speaker 5 (15:37):
It's one of the biggest countries in the world.
Speaker 7 (15:40):
It has strong economic interest like many countries in the world.
And we saw already not only was COVID when global
trades stop, we saw it also when the Huthis attacked
the ships in the Red Sea what it would mean
for global trade. We saw it one cargo ship was
turned in the channel a couple of lot of years ago.
So the effects also for one of the biggest economic
(16:02):
powers like the US. Without a world of free trade
and rules which are based on the UN Charter on
every country having the same right would be horrible. I mean,
it attaches employment, it attaches economic growth, and maybe one
of the recent topics artificial intelligence. The whole competence lies
(16:25):
in this country here in some other countries around the world,
so the whole setup for artificial intelligence. And there's a
high interest also from the US administration. This will take
place on Thursday, actually at this high level week you mentioned,
when all the tech companies are coming together together with
governments to say, okay, this is a new potential for
(16:46):
the whole world, but it obviously also needs regulation, like
if we look at deep fake and the dangers for
the use.
Speaker 2 (16:54):
How does the role of the United Nations change in
a world where countries increasingly are looking and where don't
I speak about the United States, for example, in the
America First mentality, in the America First agenda of this administration,
how do you convince this administration that the UN is worth.
Speaker 5 (17:10):
It good diplomacy.
Speaker 7 (17:13):
My point of view is not about convincing and it's
not like just speaking with the people who have the
same opinion anyhow, then you can just speak to the mirror. Actually,
but it's actually taking the people from there they are
and try to understand why are they arguing that way?
And if I've understood correctly, this administration, this president is
(17:36):
very keen about bringing peace to the world. So I
invited all heads of states to think about this much
bettered together. How can we bring peace to this divided world.
You need partners, and many partners are smaller countries. Soon
you need majorities and coming together and ask themselves. So
(17:58):
what could I do for the United Nations? So the
United Nations will deliver also for me, especially with regard
to peace support the United Nations peace plans around the world.
You can only do together if you're also engaging with
smaller in other countries around the world. And the President
has announced that you will come on Tuesday, that he
(18:19):
will speak on Tuesday, and I think this is really
the place to be for world leaders at the United Nations.
Speaker 3 (18:27):
We're talking with Anelina Bareback. She is an eighth and
General Assembly President Foreign German Foreign Minister joining us here
in studio. You know, we know the division that exists geopolitically.
We see it every day. You've been a very strong
voice on things like climate diplomacy, human rights. When we
have such division when it comes to trade wars and
(18:50):
business wars and tech wars and just plan out wars,
how do we move forward on things like climate and
climate change which I feel like it's safe to say
we are all seeing it every day of its impact,
human rights violations, which I think now is becoming a
discussion here once again in the United States in terms
of human rights or free speech. So I'm just curious,
(19:10):
how do you tackle those and have smart discussions with
world leaders about that against the broader backdrop that's troubled.
Speaker 5 (19:18):
May be starting with the climate crisis.
Speaker 7 (19:21):
Anyhow, I always say, ah, if you're not staying positive,
you should not be in international politics.
Speaker 5 (19:27):
Yeah, then you chose the wrong job.
Speaker 7 (19:29):
But for the climate crisis, for example, I've been at
the climate conference in Paris ten years ago, and this
was after a failure of failure of climate conferences worldwide,
and people said we should just stop. And then ten
years ago the world agreed, well, obviously climate crisis is
happening and it's really touching us. But they didn't dare
to say phase out of fossil fuels. They didn't dare
(19:51):
to say renewable energy. They just said we had a problem.
And now in twenty twenty five, actually last year, when
the world came together at the Climate Conference, they said
the future is renewable. Yeah, so it was only ten
years time and was kind of a resolution. So you
could dislike that, say I don't like renewable energy, but
I mean the power goes where the money goes, and
(20:13):
the big industry around the world, they have invested into
renewable energy. If we want to get into the market
around the world, like on the African continent where still
millions are not being electrified, this is only possible through
renewable energy. So I think there are so much investment
having spent in the renewable sector that there's no drawback,
(20:37):
not even if by a political decision, because this would
be all strended investments. Yeah, companies invested into these new trends.
So in this regard kind of the economy has taken away.
Doesn't mean that we still have also other ways obviously
to go.
Speaker 5 (20:52):
But if already the golf.
Speaker 7 (20:54):
Countries, I mean they're ail producing countries, are saying we
are standing on a second leg and this is renewable.
Speaker 5 (21:00):
Then obviously the world.
Speaker 7 (21:02):
Have changed in this regard, and I mean you've seen
it here in your own country. No money in the
world can protect anybody against the climate effects. When in California,
like the Witches, neighborhoods were burning.
Speaker 5 (21:14):
Yeah, it didn't help that you have money.
Speaker 7 (21:16):
You can only help together if you do climate protection
measures and protection and development around the world.
Speaker 3 (21:23):
So worldly leaders, you are continuing to have the conversation.
Companies are continued to spend, and you're seeing a movement
continuing to move forward when it comes to renewable energy.
Speaker 7 (21:32):
Yeah, these are two trends. But obviously this is our
world of capitalism. Yeah, the logic goes where the money goes.
And if you just see at the numbers of the
last years, yeah, where the investment, the big investments went.
Speaker 5 (21:47):
There's a clear trend. And this is a clear trend.
Speaker 7 (21:50):
Is sorry facing out, So not tomorrow, not the day
after tomorrow, but in the next decades.
Speaker 2 (21:57):
The President of the United States has made his disdain
for renewables, specifically wind and solar, well known. He doesn't
like windmills, he likes fossil fuels and oil, and he
likes also stay with power, but we know there are
business power after this. In your view, is the US
going to be left behind if we don't invest in renewables.
Speaker 7 (22:17):
Well, my role is not to commenting on national politics. However,
I've been to Texas actually as a foreign minister, obviously.
Speaker 8 (22:24):
Also very strong on fossils, but they showed me there,
especially all the winds, and they showed me how you
make common carbon neutral.
Speaker 7 (22:34):
Because this is the source for the future with global technology.
So I would say that also in these countries they
are like parallel trends going on, and which trends prevails.
This is a decision of every national seal state. But
if you see the trend worldwide, if you see it
in China, if you see it in Europe, but if
you see it in Africa, where the population of the
(22:57):
future is living, it's clear where the future economy will go.
Speaker 2 (23:05):
I just want to ask a big picture question. Carol
went through this list of the challenging environment that we're in,
Russia's war with Ukraine now three and a half years old,
Israel Namas coming up on its second year anniversary, the
challenges between China and Taiwan. You said you want to
make the UN more efficient. But what would you say
to a critic that says it hasn't been effective in
the last few years.
Speaker 5 (23:26):
You're right, not effective enough.
Speaker 7 (23:29):
But I always turned the question around would any country
in the world be better off without the United Nation?
Because the logic of those who argue, well, it didn't
deliver on the good would be stop doing the right thing,
but then evil would prevail. Would any truck of humanity
and aid would enter gather if we say UN doesn't
(23:50):
work anymore? Would the war in Ukraine will stop if
we wouldn't have peace negotiations going on?
Speaker 3 (23:58):
Not at all?
Speaker 5 (23:59):
So we have to try.
Speaker 7 (24:00):
This is our job, and we know from history that
the most important thing is to keep up hope. And
hope is not the conviction that everything will go right,
but hope is a conviction that you do the right thing.
And diplomises is about doing three hundred days or somethimes
been three thousand dates. Yeah, if you look back in
history again Second World War, it lasted for years and
(24:22):
years and years, and then afterwards we build the United Nations.
So it's about not giving up, trying even harder, and
always remember what.
Speaker 5 (24:31):
Would you like to do your neighbor would do.
Speaker 7 (24:34):
This is what I asked as a European when there
was a full invasion of Russia in Ukraine. Imagine that
this was only eight hours drive away from Berlin Capital.
Would I not want my neighbors helping me.
Speaker 5 (24:47):
Out when we would have been invaded?
Speaker 3 (24:49):
Or having said that as a European, do Europeans you know,
feel like the United States has abandoned it and an
important and group.
Speaker 5 (25:02):
If you will, will you bring me in difficult situation?
That's great? I switched by my job.
Speaker 7 (25:08):
No, no, and I'm speaking now for one hundred and
ninety three member states, but obviously I do have also
a national identity.
Speaker 5 (25:17):
But I mean this is alto democracy.
Speaker 7 (25:19):
Yeah, government change and therefore policy change.
Speaker 5 (25:23):
But I'm a believer, as I said.
Speaker 7 (25:25):
Not only an optimist, but a believer that deep inside.
When everybody asked themselves, so what do I wish for
my own children? What I do I wish for my
family is like to have clean water and food, to
live in peace and security, to go to school, and
to wish that my friends are helping me out. And
especially between Europe and the US. I mean, this has
(25:45):
been the deepest friendship over the last decades. So the
motto we had all together, all for one and one
for all. I think this is what held us really.
Also the freedom in our different countries, and I believe
that the majorities on both sides of.
Speaker 5 (26:02):
The Atlantic sees it's still the same way.
Speaker 3 (26:04):
Well, I have to say, while the You and General
Assembly always creates gridlock in New York City and it
gets a little crazy moving around, it always does give
me a lot of hope and optimism. We get an
opportunity to talk to leaders like yourself, global leaders who
are seeing different perspectives, different views, and just talking about
progress and things that are getting done around the world.
So it always gives me some hope. So I'm so
glad we got some time with you. Good luck this week.
Speaker 5 (26:25):
Thank you very imagined all the bits.
Speaker 3 (26:27):
Take care and Alita Berbach, she is the eightieth UN
General Assembly President Foreign German Foreign Minister, joining us right
here in studio.
Speaker 1 (26:35):
This is the Bloomberg Business Week Daily Podcast. Listen live
each weekday starting at two pm Eastern on Applecarplay and
Android Auto with the Bloomberg Business App. You can also
listen live on Amazon Alexa from our flagship New York
station just say Alexa play Bloomberg eleven thirty.
Speaker 3 (26:53):
President Trump adding a new one hundred thousand dollars fee
for h one B visas in the latest crackdown when
it comes to immigration. A lot going on when it
comes to the President in the White House. He did
also say the President that is, that he would meet
Chinese President Xijimping on the sidelines of the upcoming Asia
Pacific Economic Cooperation Summit and hailed progress toward finalizing a
deal over TikTok after a highly anticipated call earlier today,
(27:17):
he puts stuff out on social tip.
Speaker 2 (27:19):
Here's what he said, quote, I just completed a very
productive call with President she of China. We made progress
on many very important issues, including trade, fent and al,
the need to bring the war between Russia and Ukraine
to an end, and the approval of the TikTok deal.
The call was a very good one. We will be
speaking again by phone. Appreciate the TikTok approval, and both
look forward to meeting at APEX.
Speaker 3 (27:40):
Trump added, all right, let's get more on that conversation.
The week that was a busy one in Washington, although
also was over in the UK and elsewhere, so there
was a lot going on when it comes to the
chief executive of the United States. Let's get to Bloomberg
News White House correspondent Lauren Dozensky. She joins us from
the Bloomberg News bureau in the nation's capital. Lauren, where
to start, Where to star the President? Let's start with
(28:01):
Ji and the President because two largest economies, what they say,
what they do impacts the world. Was it a very
productive phone call?
Speaker 9 (28:13):
Progress, I think is the key word when we want
to look at this phone call. The details are really scant.
The President mentioned some sort of progress with this deal
with TikTok, but we have no idea what that means. Truly,
I think the most substantive thing out of the phone call,
at least from the details that we have so far,
which as you two noted, came from the Truth Social Post,
is that he will meet with President she on the
(28:35):
sidelines of APEC that will be in South Korea next month.
Of course, the details are still unknown.
Speaker 4 (28:41):
We don't know if it'll.
Speaker 9 (28:41):
Be before or afterward, or specific days whatever. Obviously, every
journalist in town is trying to figure out when exactly
that's going to be. Honestly, every journalist in the world
this is the biggest story in the world, really, and
trying to figure out what exactly these two leaders have
agreed to, what these means for tariffs as well as TikTok,
We just don't don't really know yet, So any further
(29:03):
details really are is what everyone truly is going to
be chasing.
Speaker 2 (29:06):
Well, we got other details from the Chinese readout of
the call. It struck a more measured tone. How was
that different than what we heard from President Trump in
his social media post.
Speaker 9 (29:17):
Yeah, I mean, clearly it was a good conversation, It
was a productive conversation, but really both were really scant
on details. The Chinese readout was interesting because it kind
of chided the US, saying not to pursue unilateral trade
or to go back on agreements that they had been
reached before, kind of a nod to Trump going his
(29:39):
own way.
Speaker 5 (29:39):
And also, you know, we've.
Speaker 9 (29:41):
Seen Trump also on social media kind of pull back
on previous agreements with China. So really, I think China
is trying to deal with an unpredictable leader. To describe Trump,
and I think Trump himself, you know, he is very
clear that he doesn't want to telegraph what he's going
to do, whether it comes to the war in Ukraine,
dealing with Russia, etc. He's not going to say what
(30:03):
he's going to do ahead of time, at least in
terms of negotiating. He really wants everyone to be on
their toes and to really try and get the best deal.
Speaker 5 (30:12):
He says for America.
Speaker 3 (30:13):
Lauren, as long as the two are talking, that's a
good thing.
Speaker 9 (30:17):
Yes, and markets feel that way as well, the idea
that the two are working together and you know, not
icing each other out. And we're also not seeing over
one hundred percent tariffs on goods from China buy the US.
I mean, I think we can all see that as a.
Speaker 3 (30:31):
Good thing and also good to be fair right to
acknowledge that anything that goes on between these two nations,
as we said, the two largest economies in the world.
We've talked about this when the trade and tariff spats
started or whatever you want to call it, but that
any trade agreement with China is going to be a
complicated one, a long one. So we have to understand
(30:53):
that it's going to be a lot of back and
forth before we can kind of say something's assigned.
Speaker 9 (30:56):
Deal. Absolutely, and I think that was kind of issue
at least initially when President Trump on Liberation Day two
point zero said that they were going to make ninety
deals in ninety days, to a certain extent, glossing over
the fact that trade deals take years to iron out.
Speaker 5 (31:11):
There's a lot of nuances there.
Speaker 9 (31:13):
There's obviously a lot of interests, and that's with any country,
much less these two global superpowers being the US and China,
and so to try and hash out a trade deal,
it doesn't happen quickly, and it doesn't happen easily. And
I think any any capital anywhere in the world can
say that, whether they're trying to get Howard Lutnicker's got
Vessent on the phone to hash out details with their
(31:35):
own trade deals, clearly that's very complicated. And so the
idea that the US and China negotiations are ongoing and
taking some time, I think is understandable.
Speaker 2 (31:45):
Lauren, It's Friday, so maybe we'll do a little week.
That was when it comes to Washington, an official visit
with the UK tech agreement with the UK involving investments
by US companies, the President's turning to the Supreme Court
to remove bed Governor Lisa Cook, the President's effect on
social media. What about next week? What does that happen
store for us? Help us push this forward a little bit?
Speaker 5 (32:04):
Great question.
Speaker 9 (32:06):
We do know that President does want to go to
the Ryder Cup. He said that he's planned to go
to the Ryder Cup. Obviously President Trump's affinity.
Speaker 5 (32:14):
For golf is well established. It's also in New York.
He loves New York. So we'll at least see that.
Speaker 9 (32:21):
But really, like not to sound ridiculous, but every week
holds something new and unexpected with this president, and he
at least will not get his state dinner for the
third time. Trump back in the UK very much enjoyed
his time with Charles and Camilla said that it was
the highest honor of his life that he was in
(32:42):
the UK. So while he is onward and upward and
headed to the Ryder Cup, there is also it won't
be quite as gilded and full of pomp and circumstances.
Speaker 3 (32:51):
This week was at least okay, Yeah, And I was
just thinking about kind of the coming week. I mean,
it's really we live on things that come out of
the White House, that come out on social media. But
there's still a lot going on. We've got two wars
that are still going on overseas, something we're going to
talk about with our next guest in just a moment
after our break. At the same time, we are still
(33:12):
kind of figuring out trade deals and what they mean
kind of longer term. I mean, CEOs, we're going to
get into a new earning season and they're going to
be talking about that. We saw FedEx talk about that.
That's something we're going to talk about in just a
moment as well. So there's still a lot in terms
of those areas to come from the White House.
Speaker 9 (33:31):
Absolutely, there's I think so much uncertainty in terms of
how this White House deals with projecting what they want
to do. And I think even in the reporting process,
if we're trying to figure out what's happening, so much
of what we hear is, you know, it's official when
Trump says it, it's official when the President puts it out,
(33:51):
And until the official word is coming from the President's
lips or truth social that's when we will then ultimately
get certainty. And I think certainly for CEOs and you know,
really anyone who's trying to navigate these markets, it can
be a little uncertain and obviously having some sort of
a close eye on the president's true social but also
(34:13):
you know, what he's saying day to day really just
depends on where his headspace is.
Speaker 3 (34:18):
Yeah, or moments ago when we got the headline that
the President is expected to sign a proclamation to overhaul
the H ONEB visa program requiring one hundred thousand dollars
fee for applications, something we will follow through the rest
of the day and probably into next week. Lauren, so
appreciate it. Lauren dezeenskeis She's White House correspondent Bloomberg New's
joining us there from the nation's capital.
Speaker 2 (34:36):
Stay with us. More from Bloomberg Business Week Daily coming
up after this.
Speaker 1 (34:44):
This is the Bloomberg Business Week Daily Podcast. Listen live
each weekday starting at two pm Eastern on Applecarlay, and
Android Auto with the Bloomberg Business app. You can also
listen live on Amazon Alexa from our flagship New York station.
Just say Alexa play Bloomberg eleven thirty.
Speaker 3 (35:02):
We saw yesterday the S and P five hundred, the Dow,
the Nasdaq one hundred, and the Russell all hit records
at the same time, something we have not seen in
was it twenty one years or something?
Speaker 2 (35:12):
Like that since I think it was since twenty twenty one.
Speaker 3 (35:14):
Since oh okay, sorry I.
Speaker 2 (35:16):
Think or hold on, hold on, hold on, Carol, you
I'm going to get the right information, okay, because you're
putting me on the spot. I have it written down.
Speaker 3 (35:22):
Yes, we get the knuckleheader, will you will you please?
Speaker 2 (35:25):
Will you please continue with the introduction and then I
will get you the right information.
Speaker 5 (35:29):
It's it our. I think it's it our in our.
Speaker 3 (35:31):
I know it's a big deal and it's made everybody
think about to have all of these major averages, including
the Russell, the small cap that in terms of the
markets moving up, stocks moving up, it's been much more
broad based.
Speaker 2 (35:44):
Over to you, okay, the first time this has happened
since twenty twenty one, it's only happened on twenty five
other days now this century.
Speaker 3 (35:50):
Twenty five years, twenty five days.
Speaker 2 (35:52):
It's only happened on twenty five other days this century,
and that would be the S and P five hundred,
the Dow of the Nasdaq one hundred, and the Rust
two thousand closing at a record simultaneously. It did happen yesterday,
but might not happen today with the Russell, well, the Todd.
Speaker 3 (36:03):
Is definitely saying, you know, just come on to me.
He's like, what are they doing? Help us, Walter, It's
just a friday here at Bloomberg.
Speaker 5 (36:10):
Hey.
Speaker 3 (36:10):
Walter Todd is President and chief investment Officer of Greenwood
Capital Investment Associates. Excuse me, he joins us from Greenville,
South Carolina. Nice to have you here. I don't know
if you're watching Southern charm. I'm just going to put
it out there. I have a bunch of family in
South Carolina. It's an area where real estate has been booming.
There's a lot of companies that have set up shop
(36:31):
over the past few years. You come into the airport,
you pass the Boeing planes, like, it's just kind of
a lot happening. How do you see the economy, what
you are seeing on the ground, and what you think
is happening more broadly when it comes to the US.
Speaker 10 (36:47):
Yeah, well, great to be with you guys this afternoon.
So I have a lot of ties to Charleston. My mom,
my sister, my daughter, and my step son are all
down there. So I go down there quite a bit
and it is booming. And here in Greenville, this you know,
this city is part of the state, and really the
whole state of South Carolina, the southeast in general, right
has benefited from a lot of a lot of tailwinds. So,
(37:09):
you know, the economy seems to be doing well anecdotally.
I know there's a lot of mixed messages in the
in the national data, and I think you've kind of
heard some of that confusion and Palace testimony or his
press conference on Wednesday. So again, I think in general,
the economy is okay. I just think, you know, talking
(37:29):
about the markets and the new all time highs that
were hit across the board, it just seems like the
markets may be running ahead of the pace of the
economy at this point. Ought.
Speaker 5 (37:39):
Okay.
Speaker 2 (37:39):
So so you said the economy is generally okay, where
are you seeing weakness right now?
Speaker 1 (37:44):
Yeah?
Speaker 10 (37:44):
So we're seeing in housing. You know, I was talking
to some folks in the industry here. They're seeing more
existing homes come on the market. They're sitting on the
market for longer, they're not getting the asking price. You know,
a year ago, if you a house barely came on
the market here in Greenville and it was gone, or
it may not have come on the market and it
was gone, but now you're seeing houses set for weeks
(38:05):
and months, so we're definitely seeing some pressure in housing.
We saw this with Lenar's report last night and their
call today, so that rates are definitely impacting that. You know,
the service business is very strong, Travels very strong, so
a Carolina big tourist state destination, so we're seeing good
business there as well. But I mean definitely the obviously
(38:26):
the lower tier, the you know, the bottom fifty percent
of earners, or I think challenge with the price environment
right now.
Speaker 2 (38:33):
Yeah, I think, look, that's not going to surprise anyone.
We've talked a lot about a tale of two different
economies right now, and I think anecdotally and you can
even look at the data to think about the difficulty
that some people are having finding jobs, especially young people.
That's certainly a challenge. There's also the challenges when it
comes to inflation on certain things, the price of beef
and what tariffs on important meat from Brazil and other
(38:55):
South American countries in Australia two will do to beef prices.
Speaker 3 (38:59):
We'll see what happens. There's also the question.
Speaker 2 (39:02):
About what happens with the US government and the probability
of a government shutdown. Our producer shared some notes with us.
You think that probability is at fifty six percent right now?
You still believe that even after we saw some movement
in the House, but things go to the Senate.
Speaker 10 (39:18):
Now, Yeah, so that statistic comes from Polymarket. That's the
fifty six percent. So that's that's probably you know, better
than anything to look at a probability. I think both.
I think both efforts to do a you know, a
continuing resolution, a short term stopgap measure was was blocked
in the House and Senate. If I'm not mistaken, I
think that was the headline this afternoon. So it looks
(39:39):
like we're at at least as we say he today
more likely that probability has probably gone up.
Speaker 2 (39:44):
It just went up to it went from when you
said it was poly Market. I went to check at
fifty eight percent, and then as you were speaking and
went up to fifty nine percent on poly So.
Speaker 10 (39:53):
That yeah, again, government shutdowns, you know, usually don't have
a long term impact on the economy or the market
that matter. But you know, given to kind of the
tensions in Washington right now, maybe this lasts a little
bit longer than anticipated. If we do get one and
give it to the market. You know, it's kind of
price for perfection in a lot of ways. You know,
that could have you know, an adverse effect on stock
(40:16):
prices as well.
Speaker 2 (40:17):
And the one that I'm looking at is is there
going to be a US government shut down in twenty
twenty five? That's at fifty right, that's at fifty eight percent,
to back down to fifty eight. And then there's another one.
Will the US government shut down by October first? That's
a fifty two percent chance. So if that, if that
does indeed happen, what I mean, we've we've seen this
rodeo before. So oh yeah, what what should investors sit
on their hands?
Speaker 1 (40:38):
No?
Speaker 10 (40:38):
I mean again, I don't think you invest around that necessarily.
It's just it's just one of those risks and there
are many out there that Our view is that the
market is just not discounting a lot of bad news
or any risk at this point. So you know, again,
if you've, if you've, as I said in my notes
to you guys, I think you know, you'd be more
(40:58):
tactical right here. You look, you'd be patient, look for opportunities,
be opportunistic because individual stock volatility is very high compared
to overall market volatility, which is very low with the
VIC sitting around fifteen. But you get these really dramatic
moves up and down with individual individual names, and we
would just advocate for, you know, kind of being patient
(41:20):
taking advantage of those.
Speaker 3 (41:22):
All right, So what I always like to ask people,
somebody comes to you, Walter, and they've got some new
money to put to work, where do you do it?
Speaker 5 (41:29):
Because it did.
Speaker 3 (41:29):
Sound like you think that the market is ahead of
what's going on in the economy. So I'm not quite
sure if you would say sit on that money, put
it in something like cash or cash Like, I don't
know what's the play here.
Speaker 10 (41:42):
Yeah, so I have to give the avligatory. You know,
every situation is different right now right now, very hard
to give on anyone situation.
Speaker 3 (41:50):
Favorite like niece and I come and I say, what
do I do with my money? Uncle Walter? What do
we do?
Speaker 5 (41:56):
Yeah?
Speaker 10 (41:57):
Yeah, so we would again. I think what we would
do is just you be patient. I mean, there are names,
you know in our portfolios that we would absolutely take
full positions in today. But there are also names that
we hold in our portfolio that we probably you know,
wait for to add full positions. We might take a
starting position in the name that's run but we you
know Oracle for example. You know, we're fortunate enough to
(42:19):
own that went up forty percent one day. We actually
sold half the position in that, So that's a name
we would go into, you know, full boar right here.
So again being a little bit more tactical with how
we would put money to work with new money coming.
Speaker 3 (42:34):
In, probably more like your favorite sister in law. I'm
just going to put it out there. Walter Todd have
a good weekend, so appreciate it. He is President and
chief Investment Officer of Greenwood Capital Associates, joining us from Greenville,
South Carolina.
Speaker 1 (42:46):
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
(43:07):
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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):
Well A Late Night Comics continued unfamiliar terrain last night
as they hosted their first shows after ABC suspended Jimmy
Kimmel's program over comments that he made about the assassination
of conservative activist Charlie kirk Hi.
Speaker 3 (00:44):
I still have a show though, right, Okay. Yesterday, after
threats from Trump's FCC chair, ABC yanked Kimmel off the
air indefinitely. That is blatant censorship. We have another fun, hilarious,
administration compliant show. I do know Jimmy Kimmel and he's
(01:05):
a decent, funny and loving guy, and I hope he
comes back, all right, That, of course with Stephen Colbert
or John Stewart Jimmy fallon last night, which got us
all thinking about how US presidents have long had adversarial
relationships with the media, news media, comedians, hollywooded more media altogether.
Writing about all of this is Bloomberg's Hannah Miller. She's
(01:26):
Bloomberg News media reporter and she joins us here in
our Bloomberg Interactive Broker's studio. So, Hannah, you know, presidents
have had difficult relationships with media. It's the job of
a journalist, after all, to hold power to account. Is
what's happening different? Like, how do we make sense of
what's happening right now?
Speaker 4 (01:45):
Yeah, I mean this administration has a particularly contentious relationship
with the media. Trump is very outspoken about how unhappy
he is with the way the media treats him, whether
it's news media or late night enter payment hosts. There
have been multiple lawsuits of major news organizations. We've even
(02:05):
seen settlements come out of some of those. There's also
been federal cuts to funding for public radio and public television.
Speaker 2 (02:13):
It also comes at a time, though, where the media
industry is under pressure. I mean, it kind of feels
meta just talking about this in one of the traditional
forms of media. But we're also you know, we also
embrace new media here, and I think everybody is doing that.
This is not you know, the nineteen fifties or nineteen sixties,
before the advent of cable, before the advent of the smartphone,
(02:34):
where you know, tens of millions of Americans tuned into
these three networks every single night. Does that change the
story at all?
Speaker 4 (02:42):
Yeah, I mean, I think part of it is just
how fragmented media is. You have people tuning in on
social media, sharing clips. People can dash off their thoughts
within seconds and have millions of people see them. That's
just up the stakes here. You know, Trump is very
closely following all all these different trends. We know he's
someone very tuned in to what's happening on television, what's
(03:05):
happening on social media. So it's unsurprising, you know that
he is making these comments and taking these steps.
Speaker 3 (03:12):
So what does it mean for anybody who's running a
media company, Because I do feel like what we've seen
are deals done, money paid. I feel like in many ways,
the heads of media companies are being pretty quiet in
this environment, but actions are certainly being taken. I can
only imagine what's going on behind closed doors. What are
you hearing?
Speaker 4 (03:32):
Yeah, I mean a lot of industry watchers have commented
on capitulation. You know that media execs are they're fearful
of standing up to Trump. A lot of them have
business stakes at play. Even with this recent thing with
Jimmy Kimmel. You know, Next Star it needs FCC approval
(03:53):
for its takeover of Tegna, and that's you know, that
could be a reason why it put pressure on these
ABC affiliated networks too, you know, not show Kimmel. So yeah,
that's something that we have to take into consideration that
there are business stakes at play here.
Speaker 3 (04:10):
Do we truly understand the course of events of pressure
Kimmel's comments, car of the FCC chair.
Speaker 2 (04:18):
Pocast with Benny Johnson, and then right and then like.
Speaker 3 (04:21):
The affiliates coming in, Like I'm trying to understand, like
do we actually because you look at this story, we
talk about it so much in the newsroom. Is it
freedom of speech? Is it what Jimmy Kimmel said? Is
it folks anticipating kind of getting on the good side
of the FCC. Some would say, like do we kind
of understand exactly how this all laid out?
Speaker 4 (04:39):
Yeah, it is very It can be very muddled, and
a lot of these business entities will step forward and say, hey,
These are two completely you know, separate issues. We're thinking
about this from an economic terms, We're thinking about this
from viewership. They cite ratings as the reason why they're
making these decisions. What we do know is that Brendan Carr,
you know, he is also very outspoken on social media.
He does these podcast and he, you know, implied that
(05:03):
something would happen if no steps were taken against Kimmel.
Speaker 2 (05:07):
You know, one thing that I've thought a lot about
in recent days is the power of the FCC and
the power of the government when it comes to traditional
media versus what what happens in social media. And we
actually saw during and we've this has been reported out
that even tech companies during the Biden administration faced pressure
(05:28):
over what they show, what they showed on social media
when it came to the COVID pandemic, for example. So
even in a world where there isn't necessarily a government
agency that is responsible for regulating some sort of medium,
there still can be pressure even on tech companies.
Speaker 5 (05:49):
This is not like tech.
Speaker 2 (05:50):
Companies and it's not like it's not like, Okay, well
people are going to flee traditional because of worries about regulations.
There's also concerns about impact from government officials on these
other companies too.
Speaker 3 (06:02):
Correct.
Speaker 4 (06:02):
Yeah, this is also very much a tech story, and
we've seen you know, debates about misinformation, you know, who
has the right to say what is published on the internet,
what is shared on social media. We've seen also a
lot of tech leaders align themselves with the Trump administration,
you know, appearing ad events things like that. There have
been significant changes to x under Elon Musk's ownership, so
(06:27):
it's interesting to kind of see some of that trickle
over now to traditional media.
Speaker 3 (06:31):
You know, FCC Commissioner Anagomez was on Bloomberg Technology today.
We should point out she's been an outspoken critic of
the FCC chair and President Trump's attacks on the media.
But you did join the gang, and we just want
to play it out for everybody listening.
Speaker 5 (06:46):
Yes we can.
Speaker 6 (06:46):
We can initiate an investigation based on a complaint that
is filed. We can also initiate it ourselves. But let
me be clear, there is no basis for revoking any
licenses because of the Jimmy Kimmel content or because of
normal editorial decisions from a broadcaster. The last time I
(07:07):
can think of that, we revoked a license was for
failure to air a particular broadcaster for more than a year.
Speaker 3 (07:14):
Okay, that again was FCC Commissioner Anna Gomez earlier with
the Bloomberg Technology b Tech Gang on Bloomberg TV. I
do want to point out that the FCC Chair Brendan
Carr has said he's talked about when you've got an
FCC license, it comes with an obligation to operate in
the public interest, and he likened Jimmy Kimmel's comments to
(07:34):
maybe news distortion, which is against FCC's rules for broadcasters.
But there does feel like two sides to the coin here,
and you know, and then you throw in freedom of speech.
I mean, there's a lot here to be kind of
continually unpacked. I feel like, where do you think this
all goes? Yeah.
Speaker 4 (07:53):
I actually got to see Commissioner Gomez speak yesterday at
a conference, and she was very adamant in what she
had to say and that you know, these threats are empty,
that there's this coercive element here to making these businesses
aligned to a single viewpoint. So it's and she's talked
about how scary this is and what's happening, and I.
Speaker 3 (08:16):
Believe she was appointed by President Biden.
Speaker 5 (08:18):
Is that correct or?
Speaker 3 (08:20):
Yes, so she has to be fair and fully transparent.
Speaker 4 (08:24):
Yes, she's fully embraced her role. But she said, you
know a lot of the times this is from yesterday,
she's in the dark. You know, she doesn't know that
car is going to go out there and make these comments.
So she sees herself as an opposing voice.
Speaker 3 (08:37):
Makes me wonder about again going back to CEOs who
are running media companies if they feel like they're in
the dark.
Speaker 2 (08:42):
So that's exactly where I want to go. Just in
the last minute we have with you because you and
Lucas Shaw have this great, big takeout for Bloomberg Business Week.
It's all about David Ellison and the pressure that he faces.
Just give us forty seconds on this story.
Speaker 4 (08:54):
Yeah, this is a really fun story to write. The
Ellison family has increasingly become a power, full force in media.
We're seeing that with TikTok, We're seeing that with Paramount.
We're seeing that, you know, Paramount potentially consider submitting a
bid to buy Warner Brothers Discovery. There is so much
happening here, so it was very interesting to dive into
David Elson's background. You know, his time at Skydance building
(09:15):
out that company and what he envisions for Paramount going forward.
He wants Paramount to be very technologically forward. He's kind
of modeling it, you know, off the Silicon Valley startup culture.
He wants to make changes fast too, So it's going
to be exciting to see what he has in store.
Speaker 3 (09:31):
Friendly with the Trump administration just quickly.
Speaker 4 (09:33):
Yeah, I mean they've been to UFC matches together.
Speaker 3 (09:36):
Okay, so it's just you know, all kind of fitting
together and stuff. Anyway, this is a great read. Highly
recommend everybody head to the Bloomberg or Bloomberg dot com
to read the reporting by Hannah Miller and Lucas Shaw
on what's going on at Paramount all of this stuff.
Hannah Miller is media reporter a Bloomberg News she rocks.
Thank you.
Speaker 2 (09:53):
Stay with us more from Bloomberg Business Week Daily coming
up after this.
Speaker 1 (10:01):
You're listening to the Bloomberg Business Week Daily Podcast. Catch
us live weekday afternoons from two to five e's. During
that listen on Apple Karplay and Android Otto with the
Bloomberg Business app, or watch us live on YouTube.
Speaker 3 (10:14):
Carol Master along with Tim Stenevik live here at Bloomberg
Headquarters in New York City. Well, the eightieth session of
the You and General Assembly is underway here in the city,
with the first day of the high level General Debate
happening next week. Former German Foreign Minister and Alina Bherbach
was elected President of the General Assemblies eightieth session on
June second. Her appointment comes as the regional group that
(10:35):
includes Western Europe takes its turn at the helm of
the World body. And we are delighted to have her
here in studio. President Mahrbach, so nice to have you
here with us. It's a shame there's nothing going on
in the world to talk about. Let's talk about it,
and I'm going to give you a little bit of
a list. Very familiar, I'm sure to you. Russia's war
with Ukraine, now three and a half years old, a
recent incident when Russian drones flew over Poland, Israel, and
(10:59):
Hamas coming up on its second year anniversary. The Tech War,
the trade war China Taiwan question marks President Trump saying
he had a productive call with President g just today.
Two largest economies in the world top of mind for
you as world leaders are gathering here at the UN
this week. It's a lot.
Speaker 7 (11:18):
It's a lot, and it underlines why it needs this
World Parliament, the United Nations more than ever. However, looking
around the world, we are not only in shaky times,
but this institution is under heavy pressure politically and financially,
and therefore we have to reform it. This is the
biggest task for this upcoming year and as well, and
(11:39):
this is what I would like to underline as President
of this General Assembly and the United Nations that if
we wouldn't have the United Nations, we would have to
build it because none of these global challenges you just
mentioned could one.
Speaker 5 (11:52):
Country face alone or even solve alone.
Speaker 7 (11:55):
And this is why the theme of this session is
better together.
Speaker 2 (11:58):
What is your priority in term reform? What is the
number one reform that you intend to accomplish.
Speaker 7 (12:05):
It has to be more efficient. It's a very big organization.
It does incredible work. But all we are talking about
is the failure of the Security Council because, as you mentioned,
the war in Ukraine going on because a permanent member
of the Securitared Council can just put a veto so
many are asking, so if you're not delivering on peace
and security, why does it still matter, but their institutions
(12:28):
like UNITSEV.
Speaker 5 (12:29):
Everybody knows you have.
Speaker 7 (12:30):
Millions of children wouldn't go to school without the UN
UNITSEV one. Twenty five million people would have literally starved
last year if the World Food Program wouldn't have supported them.
Speaker 5 (12:42):
And imagine the COVID pandemic.
Speaker 7 (12:44):
Even the biggest countries like the US, a strong economy
like my country Germany, we could have not fought this
virus alone because COVID didn't have a passport. So you
can only do it together with the help of the
World Health Organization and vaccination going on. But people don't
know about these great successes. So make clear that this
(13:06):
is all the UN and the money goes to the
points where it actually delivers on the people. Is the
biggest task and this is why it needs this reform.
But it needs also the political commitment of leaders. It
needs obviously the funding of member states, and currently especially
the host country is questioning this.
Speaker 3 (13:26):
What can you tell us about funding and where you
are and how much it's difficult and what more could
you use and what do you need?
Speaker 7 (13:35):
Well, every country should pay their obligation, and the United
States has been one of the biggest donors. I'm also
always underlining this Germany has for a long time been
the second biggest DONUS. But it's in the self interest
of every country itself because if we would not have
these kind of organizations imagine also like terrorism, how would
(13:55):
we fight it together. But at the moment there have
been the announcement the American administration that they might stop everything,
so we are in the depths of.
Speaker 5 (14:05):
Discussion like peacekeeping.
Speaker 7 (14:08):
If we want to keep peacekeeping going on, then we
need also the funding from the US side.
Speaker 2 (14:13):
How do you look at the US right now as
a partner if you indeed do look at the US
as a partner right.
Speaker 7 (14:19):
Now well as a transatlantic not only friend, but like
my country owes to the American people, not only that
we could recover after the Second World War, the biggest
horror my country did around the world, actually also the
reason why this United Nation was founded, and this is
why Germany is so committed. But also lately reunification. Yeah
(14:41):
that East and Western Germany came together again and we
are these countries are altogether in NATO. So it's the
understanding of one for all and all for one. And
this is why I think the transatlanting bond has to
be stronger than ever before. But obviously they are also
at these kinds of times different views on different topic.
(15:01):
And this is why the United Nations comes into play.
This is a place where you talk about also disagreements.
Speaker 3 (15:08):
Well, but on that and I want to kind of
pursue the US role. I mean, what would you ask
of the United States now, because you know there is
certainly pushback and we've got a president who at times
has said We've done a lot as a nation. What
more though, and how important is it for the US
to continue to take a leader leadership role. We've talked
a lot about the importance of soft power to globally,
(15:30):
but how important is it that the US take a
leadership role here when it comes to the UN.
Speaker 5 (15:37):
It's one of the biggest countries in the world.
Speaker 7 (15:40):
It has strong economic interest like many countries in the world.
And we saw already not only was COVID when global
trades stop, we saw it also when the Huthis attacked
the ships in the Red Sea what it would mean
for global trade. We saw it one cargo ship was
turned in the channel a couple of lot of years ago.
So the effects also for one of the biggest economic
(16:02):
powers like the US. Without a world of free trade
and rules which are based on the UN Charter on
every country having the same right would be horrible. I mean,
it attaches employment, it attaches economic growth, and maybe one
of the recent topics artificial intelligence. The whole competence lies
(16:25):
in this country here in some other countries around the world,
so the whole setup for artificial intelligence. And there's a
high interest also from the US administration. This will take
place on Thursday, actually at this high level week you mentioned,
when all the tech companies are coming together together with
governments to say, okay, this is a new potential for
(16:46):
the whole world, but it obviously also needs regulation, like
if we look at deep fake and the dangers for
the use.
Speaker 2 (16:54):
How does the role of the United Nations change in
a world where countries increasingly are looking and where don't
I speak about the United States, for example, in the
America First mentality, in the America First agenda of this administration,
how do you convince this administration that the UN is worth.
Speaker 5 (17:10):
It good diplomacy.
Speaker 7 (17:13):
My point of view is not about convincing and it's
not like just speaking with the people who have the
same opinion anyhow, then you can just speak to the mirror. Actually,
but it's actually taking the people from there they are
and try to understand why are they arguing that way?
And if I've understood correctly, this administration, this president is
(17:36):
very keen about bringing peace to the world. So I
invited all heads of states to think about this much
bettered together. How can we bring peace to this divided world.
You need partners, and many partners are smaller countries. Soon
you need majorities and coming together and ask themselves. So
(17:58):
what could I do for the United Nations? So the
United Nations will deliver also for me, especially with regard
to peace support the United Nations peace plans around the world.
You can only do together if you're also engaging with
smaller in other countries around the world. And the President
has announced that you will come on Tuesday, that he
(18:19):
will speak on Tuesday, and I think this is really
the place to be for world leaders at the United Nations.
Speaker 3 (18:27):
We're talking with Anelina Bareback. She is an eighth and
General Assembly President Foreign German Foreign Minister joining us here
in studio. You know, we know the division that exists geopolitically.
We see it every day. You've been a very strong
voice on things like climate diplomacy, human rights. When we
have such division when it comes to trade wars and
(18:50):
business wars and tech wars and just plan out wars,
how do we move forward on things like climate and
climate change which I feel like it's safe to say
we are all seeing it every day of its impact,
human rights violations, which I think now is becoming a
discussion here once again in the United States in terms
of human rights or free speech. So I'm just curious,
(19:10):
how do you tackle those and have smart discussions with
world leaders about that against the broader backdrop that's troubled.
Speaker 5 (19:18):
May be starting with the climate crisis.
Speaker 7 (19:21):
Anyhow, I always say, ah, if you're not staying positive,
you should not be in international politics.
Speaker 5 (19:27):
Yeah, then you chose the wrong job.
Speaker 7 (19:29):
But for the climate crisis, for example, I've been at
the climate conference in Paris ten years ago, and this
was after a failure of failure of climate conferences worldwide,
and people said we should just stop. And then ten
years ago the world agreed, well, obviously climate crisis is
happening and it's really touching us. But they didn't dare
to say phase out of fossil fuels. They didn't dare
(19:51):
to say renewable energy. They just said we had a problem.
And now in twenty twenty five, actually last year, when
the world came together at the Climate Conference, they said
the future is renewable. Yeah, so it was only ten
years time and was kind of a resolution. So you
could dislike that, say I don't like renewable energy, but
I mean the power goes where the money goes, and
(20:13):
the big industry around the world, they have invested into
renewable energy. If we want to get into the market
around the world, like on the African continent where still
millions are not being electrified, this is only possible through
renewable energy. So I think there are so much investment
having spent in the renewable sector that there's no drawback,
(20:37):
not even if by a political decision, because this would
be all strended investments. Yeah, companies invested into these new trends.
So in this regard kind of the economy has taken away.
Doesn't mean that we still have also other ways obviously
to go.
Speaker 5 (20:52):
But if already the golf.
Speaker 7 (20:54):
Countries, I mean they're ail producing countries, are saying we
are standing on a second leg and this is renewable.
Speaker 5 (21:00):
Then obviously the world.
Speaker 7 (21:02):
Have changed in this regard, and I mean you've seen
it here in your own country. No money in the
world can protect anybody against the climate effects. When in California,
like the Witches, neighborhoods were burning.
Speaker 5 (21:14):
Yeah, it didn't help that you have money.
Speaker 7 (21:16):
You can only help together if you do climate protection
measures and protection and development around the world.
Speaker 3 (21:23):
So worldly leaders, you are continuing to have the conversation.
Companies are continued to spend, and you're seeing a movement
continuing to move forward when it comes to renewable energy.
Speaker 7 (21:32):
Yeah, these are two trends. But obviously this is our
world of capitalism. Yeah, the logic goes where the money goes.
And if you just see at the numbers of the
last years, yeah, where the investment, the big investments went.
Speaker 5 (21:47):
There's a clear trend. And this is a clear trend.
Speaker 7 (21:50):
Is sorry facing out, So not tomorrow, not the day
after tomorrow, but in the next decades.
Speaker 2 (21:57):
The President of the United States has made his disdain
for renewables, specifically wind and solar, well known. He doesn't
like windmills, he likes fossil fuels and oil, and he
likes also stay with power, but we know there are
business power after this. In your view, is the US
going to be left behind if we don't invest in renewables.
Speaker 7 (22:17):
Well, my role is not to commenting on national politics. However,
I've been to Texas actually as a foreign minister, obviously.
Speaker 8 (22:24):
Also very strong on fossils, but they showed me there,
especially all the winds, and they showed me how you
make common carbon neutral.
Speaker 7 (22:34):
Because this is the source for the future with global technology.
So I would say that also in these countries they
are like parallel trends going on, and which trends prevails.
This is a decision of every national seal state. But
if you see the trend worldwide, if you see it
in China, if you see it in Europe, but if
you see it in Africa, where the population of the
(22:57):
future is living, it's clear where the future economy will go.
Speaker 2 (23:05):
I just want to ask a big picture question. Carol
went through this list of the challenging environment that we're in,
Russia's war with Ukraine now three and a half years old,
Israel Namas coming up on its second year anniversary, the
challenges between China and Taiwan. You said you want to
make the UN more efficient. But what would you say
to a critic that says it hasn't been effective in
the last few years.
Speaker 5 (23:26):
You're right, not effective enough.
Speaker 7 (23:29):
But I always turned the question around would any country
in the world be better off without the United Nation?
Because the logic of those who argue, well, it didn't
deliver on the good would be stop doing the right thing,
but then evil would prevail. Would any truck of humanity
and aid would enter gather if we say UN doesn't
(23:50):
work anymore? Would the war in Ukraine will stop if
we wouldn't have peace negotiations going on?
Speaker 3 (23:58):
Not at all?
Speaker 5 (23:59):
So we have to try.
Speaker 7 (24:00):
This is our job, and we know from history that
the most important thing is to keep up hope. And
hope is not the conviction that everything will go right,
but hope is a conviction that you do the right thing.
And diplomises is about doing three hundred days or somethimes
been three thousand dates. Yeah, if you look back in
history again Second World War, it lasted for years and
(24:22):
years and years, and then afterwards we build the United Nations.
So it's about not giving up, trying even harder, and
always remember what.
Speaker 5 (24:31):
Would you like to do your neighbor would do.
Speaker 7 (24:34):
This is what I asked as a European when there
was a full invasion of Russia in Ukraine. Imagine that
this was only eight hours drive away from Berlin Capital.
Would I not want my neighbors helping me.
Speaker 5 (24:47):
Out when we would have been invaded?
Speaker 3 (24:49):
Or having said that as a European, do Europeans you know,
feel like the United States has abandoned it and an
important and group.
Speaker 5 (25:02):
If you will, will you bring me in difficult situation?
That's great? I switched by my job.
Speaker 7 (25:08):
No, no, and I'm speaking now for one hundred and
ninety three member states, but obviously I do have also
a national identity.
Speaker 5 (25:17):
But I mean this is alto democracy.
Speaker 7 (25:19):
Yeah, government change and therefore policy change.
Speaker 5 (25:23):
But I'm a believer, as I said.
Speaker 7 (25:25):
Not only an optimist, but a believer that deep inside.
When everybody asked themselves, so what do I wish for
my own children? What I do I wish for my
family is like to have clean water and food, to
live in peace and security, to go to school, and
to wish that my friends are helping me out. And
especially between Europe and the US. I mean, this has
(25:45):
been the deepest friendship over the last decades. So the
motto we had all together, all for one and one
for all. I think this is what held us really.
Also the freedom in our different countries, and I believe
that the majorities on both sides of.
Speaker 5 (26:02):
The Atlantic sees it's still the same way.
Speaker 3 (26:04):
Well, I have to say, while the You and General
Assembly always creates gridlock in New York City and it
gets a little crazy moving around, it always does give
me a lot of hope and optimism. We get an
opportunity to talk to leaders like yourself, global leaders who
are seeing different perspectives, different views, and just talking about
progress and things that are getting done around the world.
So it always gives me some hope. So I'm so
glad we got some time with you. Good luck this week.
Speaker 5 (26:25):
Thank you very imagined all the bits.
Speaker 3 (26:27):
Take care and Alita Berbach, she is the eightieth UN
General Assembly President Foreign German Foreign Minister, joining us right
here in studio.
Speaker 1 (26:35):
This is the Bloomberg Business Week Daily Podcast. Listen live
each weekday starting at two pm Eastern on Applecarplay and
Android Auto with the Bloomberg Business App. You can also
listen live on Amazon Alexa from our flagship New York
station just say Alexa play Bloomberg eleven thirty.
Speaker 3 (26:53):
President Trump adding a new one hundred thousand dollars fee
for h one B visas in the latest crackdown when
it comes to immigration. A lot going on when it
comes to the President in the White House. He did
also say the President that is, that he would meet
Chinese President Xijimping on the sidelines of the upcoming Asia
Pacific Economic Cooperation Summit and hailed progress toward finalizing a
deal over TikTok after a highly anticipated call earlier today,
(27:17):
he puts stuff out on social tip.
Speaker 2 (27:19):
Here's what he said, quote, I just completed a very
productive call with President she of China. We made progress
on many very important issues, including trade, fent and al,
the need to bring the war between Russia and Ukraine
to an end, and the approval of the TikTok deal.
The call was a very good one. We will be
speaking again by phone. Appreciate the TikTok approval, and both
look forward to meeting at APEX.
Speaker 3 (27:40):
Trump added, all right, let's get more on that conversation.
The week that was a busy one in Washington, although
also was over in the UK and elsewhere, so there
was a lot going on when it comes to the
chief executive of the United States. Let's get to Bloomberg
News White House correspondent Lauren Dozensky. She joins us from
the Bloomberg News bureau in the nation's capital. Lauren, where
to start, Where to star the President? Let's start with
(28:01):
Ji and the President because two largest economies, what they say,
what they do impacts the world. Was it a very
productive phone call?
Speaker 9 (28:13):
Progress, I think is the key word when we want
to look at this phone call. The details are really scant.
The President mentioned some sort of progress with this deal
with TikTok, but we have no idea what that means. Truly,
I think the most substantive thing out of the phone call,
at least from the details that we have so far,
which as you two noted, came from the Truth Social Post,
is that he will meet with President she on the
(28:35):
sidelines of APEC that will be in South Korea next month.
Of course, the details are still unknown.
Speaker 4 (28:41):
We don't know if it'll.
Speaker 9 (28:41):
Be before or afterward, or specific days whatever. Obviously, every
journalist in town is trying to figure out when exactly
that's going to be. Honestly, every journalist in the world
this is the biggest story in the world, really, and
trying to figure out what exactly these two leaders have
agreed to, what these means for tariffs as well as TikTok,
We just don't don't really know yet, So any further
(29:03):
details really are is what everyone truly is going to
be chasing.
Speaker 2 (29:06):
Well, we got other details from the Chinese readout of
the call. It struck a more measured tone. How was
that different than what we heard from President Trump in
his social media post.
Speaker 9 (29:17):
Yeah, I mean, clearly it was a good conversation, It
was a productive conversation, but really both were really scant
on details. The Chinese readout was interesting because it kind
of chided the US, saying not to pursue unilateral trade
or to go back on agreements that they had been
reached before, kind of a nod to Trump going his
(29:39):
own way.
Speaker 5 (29:39):
And also, you know, we've.
Speaker 9 (29:41):
Seen Trump also on social media kind of pull back
on previous agreements with China. So really, I think China
is trying to deal with an unpredictable leader. To describe Trump,
and I think Trump himself, you know, he is very
clear that he doesn't want to telegraph what he's going
to do, whether it comes to the war in Ukraine,
dealing with Russia, etc. He's not going to say what
(30:03):
he's going to do ahead of time, at least in
terms of negotiating. He really wants everyone to be on
their toes and to really try and get the best deal.
Speaker 5 (30:12):
He says for America.
Speaker 3 (30:13):
Lauren, as long as the two are talking, that's a
good thing.
Speaker 9 (30:17):
Yes, and markets feel that way as well, the idea
that the two are working together and you know, not
icing each other out. And we're also not seeing over
one hundred percent tariffs on goods from China buy the US.
I mean, I think we can all see that as a.
Speaker 3 (30:31):
Good thing and also good to be fair right to
acknowledge that anything that goes on between these two nations,
as we said, the two largest economies in the world.
We've talked about this when the trade and tariff spats
started or whatever you want to call it, but that
any trade agreement with China is going to be a
complicated one, a long one. So we have to understand
(30:53):
that it's going to be a lot of back and
forth before we can kind of say something's assigned.
Speaker 9 (30:56):
Deal. Absolutely, and I think that was kind of issue
at least initially when President Trump on Liberation Day two
point zero said that they were going to make ninety
deals in ninety days, to a certain extent, glossing over
the fact that trade deals take years to iron out.
Speaker 5 (31:11):
There's a lot of nuances there.
Speaker 9 (31:13):
There's obviously a lot of interests, and that's with any country,
much less these two global superpowers being the US and China,
and so to try and hash out a trade deal,
it doesn't happen quickly, and it doesn't happen easily. And
I think any any capital anywhere in the world can
say that, whether they're trying to get Howard Lutnicker's got
Vessent on the phone to hash out details with their
(31:35):
own trade deals, clearly that's very complicated. And so the
idea that the US and China negotiations are ongoing and
taking some time, I think is understandable.
Speaker 2 (31:45):
Lauren, It's Friday, so maybe we'll do a little week.
That was when it comes to Washington, an official visit
with the UK tech agreement with the UK involving investments
by US companies, the President's turning to the Supreme Court
to remove bed Governor Lisa Cook, the President's effect on
social media. What about next week? What does that happen
store for us? Help us push this forward a little bit?
Speaker 5 (32:04):
Great question.
Speaker 9 (32:06):
We do know that President does want to go to
the Ryder Cup. He said that he's planned to go
to the Ryder Cup. Obviously President Trump's affinity.
Speaker 5 (32:14):
For golf is well established. It's also in New York.
He loves New York. So we'll at least see that.
Speaker 9 (32:21):
But really, like not to sound ridiculous, but every week
holds something new and unexpected with this president, and he
at least will not get his state dinner for the
third time. Trump back in the UK very much enjoyed
his time with Charles and Camilla said that it was
the highest honor of his life that he was in
(32:42):
the UK. So while he is onward and upward and
headed to the Ryder Cup, there is also it won't
be quite as gilded and full of pomp and circumstances.
Speaker 3 (32:51):
This week was at least okay, Yeah, And I was
just thinking about kind of the coming week. I mean,
it's really we live on things that come out of
the White House, that come out on social media. But
there's still a lot going on. We've got two wars
that are still going on overseas, something we're going to
talk about with our next guest in just a moment
after our break. At the same time, we are still
(33:12):
kind of figuring out trade deals and what they mean
kind of longer term. I mean, CEOs, we're going to
get into a new earning season and they're going to
be talking about that. We saw FedEx talk about that.
That's something we're going to talk about in just a
moment as well. So there's still a lot in terms
of those areas to come from the White House.
Speaker 9 (33:31):
Absolutely, there's I think so much uncertainty in terms of
how this White House deals with projecting what they want
to do. And I think even in the reporting process,
if we're trying to figure out what's happening, so much
of what we hear is, you know, it's official when
Trump says it, it's official when the President puts it out,
(33:51):
And until the official word is coming from the President's
lips or truth social that's when we will then ultimately
get certainty. And I think certainly for CEOs and you know,
really anyone who's trying to navigate these markets, it can
be a little uncertain and obviously having some sort of
a close eye on the president's true social but also
(34:13):
you know, what he's saying day to day really just
depends on where his headspace is.
Speaker 3 (34:18):
Yeah, or moments ago when we got the headline that
the President is expected to sign a proclamation to overhaul
the H ONEB visa program requiring one hundred thousand dollars
fee for applications, something we will follow through the rest
of the day and probably into next week. Lauren, so
appreciate it. Lauren dezeenskeis She's White House correspondent Bloomberg New's
joining us there from the nation's capital.
Speaker 2 (34:36):
Stay with us. More from Bloomberg Business Week Daily coming
up after this.
Speaker 1 (34:44):
This is the Bloomberg Business Week Daily Podcast. Listen live
each weekday starting at two pm Eastern on Applecarlay, and
Android Auto with the Bloomberg Business app. You can also
listen live on Amazon Alexa from our flagship New York station.
Just say Alexa play Bloomberg eleven thirty.
Speaker 3 (35:02):
We saw yesterday the S and P five hundred, the Dow,
the Nasdaq one hundred, and the Russell all hit records
at the same time, something we have not seen in
was it twenty one years or something?
Speaker 2 (35:12):
Like that since I think it was since twenty twenty one.
Speaker 3 (35:14):
Since oh okay, sorry I.
Speaker 2 (35:16):
Think or hold on, hold on, hold on, Carol, you
I'm going to get the right information, okay, because you're
putting me on the spot. I have it written down.
Speaker 3 (35:22):
Yes, we get the knuckleheader, will you will you please?
Speaker 2 (35:25):
Will you please continue with the introduction and then I
will get you the right information.
Speaker 5 (35:29):
It's it our. I think it's it our in our.
Speaker 3 (35:31):
I know it's a big deal and it's made everybody
think about to have all of these major averages, including
the Russell, the small cap that in terms of the
markets moving up, stocks moving up, it's been much more
broad based.
Speaker 2 (35:44):
Over to you, okay, the first time this has happened
since twenty twenty one, it's only happened on twenty five
other days now this century.
Speaker 3 (35:50):
Twenty five years, twenty five days.
Speaker 2 (35:52):
It's only happened on twenty five other days this century,
and that would be the S and P five hundred,
the Dow of the Nasdaq one hundred, and the Rust
two thousand closing at a record simultaneously. It did happen yesterday,
but might not happen today with the Russell, well, the Todd.
Speaker 3 (36:03):
Is definitely saying, you know, just come on to me.
He's like, what are they doing? Help us, Walter, It's
just a friday here at Bloomberg.
Speaker 5 (36:10):
Hey.
Speaker 3 (36:10):
Walter Todd is President and chief investment Officer of Greenwood
Capital Investment Associates. Excuse me, he joins us from Greenville,
South Carolina. Nice to have you here. I don't know
if you're watching Southern charm. I'm just going to put
it out there. I have a bunch of family in
South Carolina. It's an area where real estate has been booming.
There's a lot of companies that have set up shop
(36:31):
over the past few years. You come into the airport,
you pass the Boeing planes, like, it's just kind of
a lot happening. How do you see the economy, what
you are seeing on the ground, and what you think
is happening more broadly when it comes to the US.
Speaker 10 (36:47):
Yeah, well, great to be with you guys this afternoon.
So I have a lot of ties to Charleston. My mom,
my sister, my daughter, and my step son are all
down there. So I go down there quite a bit
and it is booming. And here in Greenville, this you know,
this city is part of the state, and really the
whole state of South Carolina, the southeast in general, right
has benefited from a lot of a lot of tailwinds. So,
(37:09):
you know, the economy seems to be doing well anecdotally.
I know there's a lot of mixed messages in the
in the national data, and I think you've kind of
heard some of that confusion and Palace testimony or his
press conference on Wednesday. So again, I think in general,
the economy is okay. I just think, you know, talking
(37:29):
about the markets and the new all time highs that
were hit across the board, it just seems like the
markets may be running ahead of the pace of the
economy at this point. Ought.
Speaker 5 (37:39):
Okay.
Speaker 2 (37:39):
So so you said the economy is generally okay, where
are you seeing weakness right now?
Speaker 1 (37:44):
Yeah?
Speaker 10 (37:44):
So we're seeing in housing. You know, I was talking
to some folks in the industry here. They're seeing more
existing homes come on the market. They're sitting on the
market for longer, they're not getting the asking price. You know,
a year ago, if you a house barely came on
the market here in Greenville and it was gone, or
it may not have come on the market and it
was gone, but now you're seeing houses set for weeks
(38:05):
and months, so we're definitely seeing some pressure in housing.
We saw this with Lenar's report last night and their
call today, so that rates are definitely impacting that. You know,
the service business is very strong, Travels very strong, so
a Carolina big tourist state destination, so we're seeing good
business there as well. But I mean definitely the obviously
(38:26):
the lower tier, the you know, the bottom fifty percent
of earners, or I think challenge with the price environment
right now.
Speaker 2 (38:33):
Yeah, I think, look, that's not going to surprise anyone.
We've talked a lot about a tale of two different
economies right now, and I think anecdotally and you can
even look at the data to think about the difficulty
that some people are having finding jobs, especially young people.
That's certainly a challenge. There's also the challenges when it
comes to inflation on certain things, the price of beef
and what tariffs on important meat from Brazil and other
(38:55):
South American countries in Australia two will do to beef prices.
Speaker 3 (38:59):
We'll see what happens. There's also the question.
Speaker 2 (39:02):
About what happens with the US government and the probability
of a government shutdown. Our producer shared some notes with us.
You think that probability is at fifty six percent right now?
You still believe that even after we saw some movement
in the House, but things go to the Senate.
Speaker 10 (39:18):
Now, Yeah, so that statistic comes from Polymarket. That's the
fifty six percent. So that's that's probably you know, better
than anything to look at a probability. I think both.
I think both efforts to do a you know, a
continuing resolution, a short term stopgap measure was was blocked
in the House and Senate. If I'm not mistaken, I
think that was the headline this afternoon. So it looks
(39:39):
like we're at at least as we say he today
more likely that probability has probably gone up.
Speaker 2 (39:44):
It just went up to it went from when you
said it was poly Market. I went to check at
fifty eight percent, and then as you were speaking and
went up to fifty nine percent on poly So.
Speaker 10 (39:53):
That yeah, again, government shutdowns, you know, usually don't have
a long term impact on the economy or the market
that matter. But you know, given to kind of the
tensions in Washington right now, maybe this lasts a little
bit longer than anticipated. If we do get one and
give it to the market. You know, it's kind of
price for perfection in a lot of ways. You know,
that could have you know, an adverse effect on stock
(40:16):
prices as well.
Speaker 2 (40:17):
And the one that I'm looking at is is there
going to be a US government shut down in twenty
twenty five? That's at fifty right, that's at fifty eight percent,
to back down to fifty eight. And then there's another one.
Will the US government shut down by October first? That's
a fifty two percent chance. So if that, if that
does indeed happen, what I mean, we've we've seen this
rodeo before. So oh yeah, what what should investors sit
on their hands?
Speaker 1 (40:38):
No?
Speaker 10 (40:38):
I mean again, I don't think you invest around that necessarily.
It's just it's just one of those risks and there
are many out there that Our view is that the
market is just not discounting a lot of bad news
or any risk at this point. So you know, again,
if you've, if you've, as I said in my notes
to you guys, I think you know, you'd be more
(40:58):
tactical right here. You look, you'd be patient, look for opportunities,
be opportunistic because individual stock volatility is very high compared
to overall market volatility, which is very low with the
VIC sitting around fifteen. But you get these really dramatic
moves up and down with individual individual names, and we
would just advocate for, you know, kind of being patient
(41:20):
taking advantage of those.
Speaker 3 (41:22):
All right, So what I always like to ask people,
somebody comes to you, Walter, and they've got some new
money to put to work, where do you do it?
Speaker 5 (41:29):
Because it did.
Speaker 3 (41:29):
Sound like you think that the market is ahead of
what's going on in the economy. So I'm not quite
sure if you would say sit on that money, put
it in something like cash or cash Like, I don't
know what's the play here.
Speaker 10 (41:42):
Yeah, so I have to give the avligatory. You know,
every situation is different right now right now, very hard
to give on anyone situation.
Speaker 3 (41:50):
Favorite like niece and I come and I say, what
do I do with my money? Uncle Walter? What do
we do?
Speaker 5 (41:56):
Yeah?
Speaker 10 (41:57):
Yeah, so we would again. I think what we would
do is just you be patient. I mean, there are names,
you know in our portfolios that we would absolutely take
full positions in today. But there are also names that
we hold in our portfolio that we probably you know,
wait for to add full positions. We might take a
starting position in the name that's run but we you
know Oracle for example. You know, we're fortunate enough to
(42:19):
own that went up forty percent one day. We actually
sold half the position in that, So that's a name
we would go into, you know, full boar right here.
So again being a little bit more tactical with how
we would put money to work with new money coming.
Speaker 3 (42:34):
In, probably more like your favorite sister in law. I'm
just going to put it out there. Walter Todd have
a good weekend, so appreciate it. He is President and
chief Investment Officer of Greenwood Capital Associates, joining us from Greenville,
South Carolina.
Speaker 1 (42:46):
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