November 5, 2025 • 38 mins
Chuck Zodda and Marc Fandetti discuss the longest shutdown in history is costing the US economy about $15B each week. The Supreme Court is hearing arguments about tariffs. The Fed can't fix the "K" shaped economy. McDonald's sales rise, but the CEO expects low-income diners to spend less into next year. Burger King braces for the demise of the penny.
Mark as Played
Transcript
Episode Transcript
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Speaker 1 (00:00):
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(00:42):
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(01:05):
Zada and Mark Vandetti, Chuck Mark.
Speaker 2 (01:11):
Tucker with you here today, and as we take a
look around markets, we've got some green on the board,
not enough to reverse all of yesterday's losses, but the
S and P is up twenty nine points, are a
little less than half a percent, Dow's up about a
tenth of a percent, or forty nine points, and the
NASDAK composite up three quarters of a percent about one
hundred and seventy two points at the moment. Tenure US
(01:34):
Treasury is selling off today, up six point six basis
points to four point one five seven percent, so we've
now got about a quarter percent rise off the recent
lows that we've seen there. Mortgage rates are also back
in the six point three to three percent range. With
this move today, you might be getting close to six',
four but we'll have to see What Mortgage News daily's
(01:56):
afternoon update. SHOWS us there index continuing its recent strength as,
well a point zero four percent and back over one.
Hundred and we've got gold rallying just a touch, today
up twenty six eighty an ounce to thirty nine eighty
seven and thirty, cents so back below four thousand, dollars
but trying to make another run at. It crude oil
(02:18):
up six cents a barrel to sixty dollars and sixty
two cents in THE tripa national averageur gas prices taking
a big jump up over the last couple of, days
up two point six cents a gallon to three dollars
and seven cents and nine tenths of a. CENT i
don't know what's driving. THIS i haven't seen any major,
news But i'm sure there is a refinery outage somewhere
(02:42):
that's calling this since the price of oil has not really,
moved so that's what's going on in broad markets.
Speaker 3 (02:50):
In THE us.
Speaker 2 (02:51):
Economy we continue to see THE us government shut down
now heading into its thirty fifth, day and so so
when you look at, this it's something where we're now
at the LONGEST us government shutdown that we have on. Record,
again like you look at the previous ones that we've,
(03:15):
had the previous, closest the previous longest one that we
had was thirty Four i'm, sorry thirty five days back
in twenty eighteen into early twenty, nineteen and again we're
now at the point where we have we're into the
thirty sixth day of this. Shutdown the economic impact is
(03:38):
not something that is easy to measure, generally you, know
the conventional wisdom is for each week of a shutdown
you see maybe ae point one percent hit TO. Gdp
but it's also not something where we have a lot
of robust data on. This here are the lengths of
shutdowns that we. Have i've seen one, day one, day one,
(04:04):
day three, days three, days four, days six, days sixteen,
days twenty one, days thirty five, days and thirty six.
Days so, ultimately the vast majority of, shutdowns aside from
three of, them have been under.
Speaker 3 (04:23):
Three weeks in.
Speaker 2 (04:24):
Duration SO i don't think you can glean anything about
the economic impact of a three day, shutdown because there
are things that start to happen after thirty forty fifty
sixty days that don't happen after. Three like a three day,
shutdown you do not have missed pay, periods just as an,
Example so, like how would you even model that you're
now getting to the point where you're having multiple missed pay?
(04:44):
Periods and, ULTIMATELY i think there is a point where
the impact becomes. LARGER i don't know what that point,
is AND i don't know how much larger the impact
becomes because we've never been there.
Speaker 3 (04:59):
Before you, know this is The Christopher columbus of.
Speaker 2 (05:04):
Shutdowns it's taking a path not, traveled and you don't
know what you're gonna find at the end.
Speaker 4 (05:10):
Of, it and when you do find, it you mistake
it for something. Else MAYBE i don't know if you
can extend the, metaphor.
Speaker 2 (05:16):
It's, possible but it's it's just something WHERE i don't
know exactly what's going to, happen BUT i can tell
you that each day you go, on it probably gets
more dangerous and it's unclear you know what the impact
ends up.
Speaker 4 (05:31):
Being we don't know what's going on behind the. Scenes
maybe they're close to a meeting of the minds on
the major.
Speaker 3 (05:36):
Issues, YEAH i.
Speaker 2 (05:39):
Wouldn't the betting markets have been stuck for the last
week or. So saying that this thing will last somewhere
in the mid forties number of. Days that's kind of
what we've been seeing since Mid october is, okay like
early to Mid november is when this will resolve.
Speaker 4 (05:56):
ITSELF i will say it occurred to me after reading
election results last, night And i'm a not that this
kind of, analyst but since we're speculating. Here if it's,
okay If i'm, on If i'm A, democrat Which i'm,
not but IF i, WERE i would think we're not
getting blamed for. This we have absolutely no incentive To
so What i'm saying is last night's, results to me
an amateur political, observer not unlike anybody, listening we can
(06:18):
all kind of speculate and have fun seem to make
a resolution in the short term less not more. Likely
they seem to be Doing, okay they're not getting. Blamed
why would?
Speaker 2 (06:27):
They the counter to that is that If democrats already
got through those elections with results that they, wanted then,
okay there's no real incentive for them to continue with
any kind of shut, down and maybe that moves towards
a quicker, Resolution like you can make that.
Speaker 4 (06:45):
Case so why would they cave? Now i'm not. Disagreeing
there's no way would they compromise now.
Speaker 2 (06:51):
TODAY i think that the potential for any short term
political upside might be capp now that the, election like
they may have already gotten what they wanted out of.
It potentially, AGAIN i, yeah we're all speculating on.
Speaker 4 (07:02):
This, YEAH i don't.
Speaker 2 (07:03):
Know the big thing that is out there Is, thanksgiving
and no one wants to be blamed for people not
being able to get to their destinations On. Thanksgiving AND
i think that's, why you, know part of the reason
why betting markets have kind of settled on you, know
this forty five days that gets things resolved somewhere towards
the end of next week or early the week, after
(07:26):
so that things resume normal operations By thanksgiving week and
you don't have air traffic controllers OR tsa agents calling
out sick and a bunch of people stranded at airports
because airspaces are closed and things like.
Speaker 4 (07:38):
That, NOW i don't know what the individual players, here
what their motivations. Are if they're acting on, principle sure
then they might just think it's possibly doing some pain
is worth it if the longer term gain exceeds the
pain short term. PAIN i don't.
Speaker 3 (07:52):
Know, YEAH i don't.
Speaker 2 (07:54):
Know none of us know how long this is going to,
last but it seems pretty clear it's not going to
be resolved. Today and, again each day that you go
on is the potential for more financial things to become
problematic for, Individuals and if enough individuals have problematic financial,
situations then it becomes a problem, locally and if enough
localities have, situations then it develops into a national.
Speaker 4 (08:17):
Yea and it could contribute to the onset of. Recession
government spends a little over twenty cents of every dollar
spent at the federal.
Speaker 3 (08:24):
Level and, money so that is still being spent right,
now by the.
Speaker 4 (08:27):
Way, yeah but even you, know a little bit on the. Margin,
yes if growth is weak to begin, with could be
enough to tip the economy into a different. State and
then once you're in that different, state it's not just
a matter of snap in your fingers to break out of. It.
Correct so you been saying, This you've been saying at
some point you plod along at a rate that's just
a function of, time it's just a straight. Line then
(08:48):
at some point the little path you're on is no
longer a straight. Line it slopes upward. Sharply and nobody
saw that. Coming when is that bend? It does it even?
Speaker 3 (08:58):
Exist?
Speaker 2 (08:58):
Yeah so this is where we are right now with
the shutdown and its economic. Impact as far as you
know how long this thing goes, ON i don't. Know
i'm not going to profess to. Know and when it's,
over we'll tell. You it's about ALL i got on it.
Speaker 3 (09:16):
To take a quick.
Speaker 2 (09:17):
Break when we come. Back something else THAT i don't
know how it's going to turn. Out The trump tariffs
are now in front of The Supreme court. TODAY i
am not a tariff, scholar SO i can't tell you
what's going to. Happen but we'll tell you what's at,
stake some of the possible permutations of where things end.
Speaker 3 (09:34):
Up and we've got trivia when we.
Speaker 1 (09:36):
Return The Financial exchange is life on serious XM's Business
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Speaker 5 (10:12):
Network let's do a little bit of trivia here on
The Financial exchange on this. Day in nineteen thirty, Five
Parker brothers launched.
Speaker 4 (10:24):
The board Game.
Speaker 5 (10:25):
Monopoly everyone knows boardwalk and Park place are the most
expensive properties on the. Board so our trivia question, today
how much does it cost to buy boardwalk In? Monopoly once,
again how much does it cost to Buy boardwalk In? Monopoly,
uh be the fourth person today At texas at sixty
(10:47):
one seven three six two thirteen eighty five with the correct,
answer and you win A Financial Exchange SHOW t. Shirt once.
Again the fourth correct response To texas to the number
six one seven three six two thirteen eighty five will
win THAT t. Shirt see complete contest rules At Financial
Exchange show dot. Com and want to remind everybody out
there to subscribe to our YouTube. Page will you find
(11:10):
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just hit that subscribe.
Speaker 2 (11:21):
Button as of this very, moment the tariffs imposed By
President trump earlier this, year or at least a set of,
them are currently being heard in A Supreme court argument
that is being argued right. Now, Obviously mark AND i
are you, know doing our, show so we're not listening to,
(11:42):
It nor Are mark AND i constitutional. Scholars it's it's you,
know we're we're we don't have law. Degrees this isn't
really about, economics so we're not going to tell you
here's what we think will or won't, happen Because mark
AND i don't have any unique insight. There WHAT i
can tell you is that the case is being heard right,
(12:03):
now and based, on you, know kind of what we've
heard from people, who do you, know specialize in this,
thing a ruling is likely to come somewhere towards the
end of this year or early IN q, One so
probably two to three months from now is what is.
Expected questions that are out there that will. Matter number,
(12:23):
one are The trump tariffs legal or? Not that's you,
know kind of the whole crux of. It if they,
are then things continue as they. Are if, not this
is where things get interesting in terms of is there
a potential, remedy meaning do companies Receive are they are
companies entitled to a refund of any tariffs that have
(12:47):
already been paid by? Them if, so what is the
timeline for? That because remember that money is not just
sitting IN us government. Coffers THE us government would have
to likely issue bonds in order to issue tech treasuries
in order to get that money. Back number, two if
companies were harmed by, this were individuals also harmed in
(13:09):
the purchase of tariff? Products and would individuals be entitled
to relief from either companies or THE us. GOVERNMENT i
have absolutely no idea what would the process and timeline
for that look? Like, again no, idea but this is
one of the things that is going to be out
there as a. Question another, one if this particular approach
(13:32):
is ruled to be unconstitutional or illegal by the executive,
branch are there other avenues by which they can impose
tariffs of similar nature that would have that would uphold you,
know the legality or constitutionality that you need in order
for them to be. Implemented there, are you, know a
number of different paths that the executive branch can potentially
(13:55):
use to impose. Tariffs and so just because these may
be vacate doesn't mean that they can't be reimposed in
a different fashion after a different means of study from
THE Us Trade representative's office or other similar, things.
Speaker 4 (14:08):
Or you, Know god, forbid just put a bill in
front Of congress or get them to pass The. Congress
why can't they do that? Tomorrow?
Speaker 2 (14:14):
Correct Or congress could pass a bill saying we want
to these Tere republicans do control EVERY i don't like the,
tariffs BUT i couldn't argue with the process.
Speaker 4 (14:21):
Followed if indeed they did it that.
Speaker 2 (14:22):
Way SO i think these are all questions that are out,
there and they are not ones THAT i have answers.
Speaker 3 (14:31):
Too we're going to hear what The Supreme.
Speaker 2 (14:32):
Court has to say probably in two or three months on,
this and once we get to that, point we'll have.
Clarity but you, KNOW i look around on social media
and freaking like everyone instantly this morning became a constitutional,
scholar like everyone's, saying definitively this is. Not BUT i
am happy to say. THAT i don't know HOW i.
Speaker 4 (14:54):
WILL i will say one. Thing the idea that a
trade deficit is an emergency is. Preposterous we've had a
trade deficit since the nineteen. Seventies the reason is the
difference between what we save and investment. Opportunity in this.
Economy when you import, capital you have to at the
same time import goods and. Services you pay for those
goods and services with your home. Currency that home currency
(15:16):
gets recycled back into your government's, debt for, EXAMPLE us,
treasuries it gets recycled back into foreigners PURCHASING us real.
Estate so the trade, deficit which if you google its
history and you just look at the so called time
series its value over, time you see something happened in
the nineteen. Seventies what did capital controls were liberalized in
(15:36):
the nineteen, Seventies japan was free to start investing In
america the way it wasn't. Before they have huge excess.
Savings that excess savings came. Here our dollars went out
and Bought sony And toyota and other. Products so the
trade deficit is a function of the international flow of
payments and, capital and a function two of how much we.
Save we don't save. Enough if you want to fix
the trade, deficit you fix the savings. Problems there's a
(16:00):
certain amount of economic literacy underlying the government's argument that
this is some kind of national, emergency also belied by
the fact that again we've had a trade deficit for
fifty years THAT i feel perfectly comfortable with commenting.
Speaker 2 (16:12):
On so, ultimately again going to be two to three
months before we get a ruling on this betting markets
are saying with about a two to one, edge you,
know call it sixty forty sixty five thirty, five that
they expect to see these tariffs struck. Down but, AGAIN
i don't know that sixty five to thirty five is particularly,
informative just because a these betting markets can be wrong
(16:35):
and be something that has a thirty five percent chance
of happening still happens two and a half times in a.
Week if you're trying, to you, know figure, out you,
know how many days of the week would this. Happen
that's still not an infrequent thing to. HAPPEN a thirty
five percent chance is not likely to, happen but it's
it's not something where you're, like, oh like that's you,
know a tail, event like they could, be you, know
(16:55):
potentially declared. Constitutional SO i don't know how this is
going to play, out but we'll know probably Late. December,
january Early february is kind of the tail end of
Where i've heard this may end up being ruled. On
but we're looking somewhere in that.
Speaker 3 (17:11):
Range let's.
Speaker 2 (17:13):
SEE i think that's enough tariff talk for. Now how
The fed can change the k shaped, Economy i'm not
sure they. Can THE fed doesn't have the tools to
change the case shaped to.
Speaker 4 (17:23):
Coomy THE fed can influence, demand and it's a pretty
blunt instrument monetary. Politics you can't engineer equitable. Outcomes you
can't make sure this group does better relative to. Another
one of the big criticisms is recently articulated by A
treasure secretary bescent we're, percent is that THE fed is
(17:45):
experienced mission creep over the past i'll just say ten.
Years and he's absolutely right about. That all these other.
Objectives he didn't put it this WAY i. Would THE
fed simply can't attain and it should focus on keeping
inflation low and. Stable so mission has not been been.
Speaker 2 (18:01):
Helpful and you, know no matter what the situation is
with interest, rates they're always, wrong according to, everyone you.
KNOW i remember back during the twenty, tens for almost
the whole, decade ALL i heard consistently, is, oh interest
(18:23):
rates are too. Low you're punishing savers and you, know
especially people on fixed incomes that rely on, CDs like
this is just. Awful and then for the last you,
know three, years ALL i hear, is.
Speaker 3 (18:37):
Oh interest rates are too.
Speaker 2 (18:39):
High no one can, borrow no one can get a, mortgage,
like it's impossible to do. This and it's, like, guys
what's what's the what's the magical interest?
Speaker 3 (18:48):
Rate that's just? Right you, know like what's what? What
what is?
Speaker 2 (18:52):
It, like what's what's the one where you, say, ah
we've gotten?
Speaker 4 (18:56):
It? Likes but it's it's a theoretical. Concept is it
the unicorn? Rate, well our star the neutral? Rate which
what the feds.
Speaker 3 (19:04):
Nor people stop complaining about.
Speaker 4 (19:07):
It different people complain for different, reasons, right interestrates are
always too, long.
Speaker 2 (19:10):
But you always have these pieces published in the financial
publications being like here's why interest rates are hurting these.
People and it's, like, guys like there is no interest
rate that isn't a positive for some groups and a
negative for. Others can we just acknowledge? That and the
answer is, no because we always have to be upset about.
Speaker 3 (19:28):
It let's take a quick.
Speaker 2 (19:30):
Break when we come, back we got the trivia, answer
and we're Doing Wall Street, watch.
Speaker 1 (19:39):
Bringing the latest financial news straight to your. Radio every.
Day it's The Financial exchange on The Financial Exchange Radio.
Network time now For Wall Street, watch a complete look
at what's moving markets so far today right here on
The Financial Exchange Radio.
Speaker 5 (19:57):
Network market's trying to rebound after yesterday's tech driven sell.
Off Wall street's also reacting to a stronger than EXPECTED
Adp private payrolls report posted earlier this. Morning right, now
The dow is up a tenth of a percent or
fifty four, POINTS smp five, hundred up about a half
a percent or thirty four, POINTS nasdac up eight tenths
(20:20):
of one percent or one hundred and eighty eight, POINTS
rusted two thousands up six tenths of one, PERCENT Dan
Your treasure willed up six bases points now at four
point one five to three, percent and crude oil flat
edging higher training at sixty dollars in fifty eight cents a.
Barrel shares and Chip maker off about half a percent
(20:41):
after the company beat third quarter earnings and revenue. Forecasts,
however sentiment took a slight hit after AMD's adjusted margin
guidance for the current quarter came in line with. Expectations
sticking with the chip, sector Where Super microcomputer posted quarterly
results that missed, estimates sending shares down over eight. Percent,
(21:01):
meanwhile McDonald's reported third quarter earnings and revenue that missed. Expectations,
however the company says value.
Speaker 3 (21:07):
Meals and new.
Speaker 5 (21:07):
Products we're helping revive sales in a challenging environment for
fast food. BUSINESS us same store sales increase two point four,
percent stronger than analysts. Anticipated McDonald's is now up too.
PERCENT a fast casual, Restaurant, cava offered a lower full year,
guidance downwardly revising its same store sales outlook in addition
(21:28):
to a lower profit margin. Range cava now down one. Percent,
Elsewhere pinterest plunging twenty one percent after the social media
company reported weaker than expected, earnings and after today's, clothes
we'll see more results from App, Lovin', Qualcomm, Armholdings, robinhood
and Door. Dash I'm Tucker silva and that Is Wall Street.
(21:49):
Watch and in the previous, segment we asked you the trivia,
question how much does it cost to Buy boardwalk in?
Monopoly that would be four hundred. Dollars tom From Spencer
masses are winner today taking home The Financial Exschane SHOW t.
Shirt congrats To. Tom we play trivia every day here
in The Financial. Exchange see complete contest rules At Financial
Exchange show dot.
Speaker 2 (22:10):
Com what's the rent you receive In boardwalk if you
haven't developed to a hotel two, hundred two, thousand two.
Hundred what do you THINK i? Haven't what do you
think this Is mediterranean? Avenue my, goodness go directly to,
Jail do not pass.
Speaker 4 (22:27):
Go that's all rent controlled now Under Mom. DAMIE i
thinks they're gonna have to REISSUE i mean they're gonna
have to reissue the Game, MONOPOLY Momdammi, monopoly the fascinating
nobody gets ten, dollars.
Speaker 2 (22:37):
The fascinating thing About so here's the actual interesting thing About.
Monopoly if you, do you have either of you ever
read about the history of its.
Speaker 3 (22:44):
Development, no.
Speaker 2 (22:48):
Let me make sure THAT i quote this, correctly just
BECAUSE i.
Speaker 3 (22:52):
Wanted wasn't it called something else?
Speaker 4 (22:53):
Originally hang, on.
Speaker 2 (22:55):
Let me pull from here we. Go this is from
The wikipedia, pages because AGAIN i was just looking for it.
Quickly the history Of monopoly can be traced back to
nineteen oh, three where The american anti Monopolist lizzie McGhee
created a game Called The Landlord's games that was what
it was originally, called that she hoped would explain the
(23:15):
single tax theory Of Henry george is laid out in
his Book progress And. Poverty she devised the key features
of the. Game it was intended as an educational tool
to illustrate the negative aspects of concentrating land in private.
Monopolies does it actually do that or it did the exact.
Speaker 4 (23:35):
Opposite Fun the crazy thing about capitalism, is and others
have made this. Observation you can eradicate it like you
try to eradicate all the weeds in your, yard but
it always springs. Up it's just in our nature to
be inquisitive. Competitive it doesn't have to be. Unhealthy you
could channel it in positive. Ways, no but so just
this that reminded me of that observation because you could
(23:58):
try to kill. It you could try to train it
out of kids with liberal or left wing inappropriately aggressive
left WING i mean, professors even left wing professors generally encourage.
Debate it's a myth that they. Don't but you could
be in appropriately left. Wing you could try to beat
it out of your, students and they always come back
to it because it's it's somehow baked into OUR, dna.
Speaker 2 (24:16):
And it's something where when you look AT i come
back to this quite. Often the idea that in terms
of what we found generally to produce the best outcomes it.
Is oh, yeah it is neither completely unregulated capitalism nor
completion state run. Government you are trying to create competitive
(24:36):
markets because completely unregulated capitalism leads to you, know the
big railroads and everything where it's just you get, monopolistic
and you do run into problems there as well because.
Speaker 3 (24:45):
Of a latch of.
Speaker 4 (24:45):
Competition try to curtail, that.
Speaker 2 (24:47):
Sir so it's, okay how do we create competitive markets
so that we can, compete you, know and have a
playing field where we can do. That BUT i just
find it great that monopoly was originally. Developed is, like,
hey don't do. This everyone's kind of, like, nah this is.
Great LIKE i want to own, boardwalk like of, course
let me own. Both LIKE i want boardwalk in park,
Place like, yeah you'll trade me for. That you can
(25:08):
have the, utilities, fine no.
Speaker 4 (25:10):
Problem it's like you give kids a cautionary tale about
drugs or something and they just use it as an instruction.
Manual they take away what not all.
Speaker 2 (25:18):
Kids but you know WHAT i, Mean, yes let's talk
a little bit about, McDonald's which first gotta be completely.
Honest woke up earlier this week AND i said this
On Monday Show, mark did you realize That uber has
twice the revenue that McDonald's.
Speaker 4 (25:31):
DOES i can't say that it ever would have acred
to me to make that. Comparison, no they.
Speaker 2 (25:36):
Both reported earnings this, week so it's the only reason
THAT i noted, it AND i was like, Wow LIKE
i would not have thought that to be the.
Speaker 3 (25:42):
Case McDonald's like.
Speaker 2 (25:45):
McDonald's like, this like like, oh like they are like Big,
burger like Big, beef And uber you kind of think
of as like this scrappy upstart just fifty billion dollars
in revenue a. Year McDonald's is like twenty six Wild,
anyways McDonald's reported earnings this. Morning they were generally, fine
which is why the stock is rallying, Today but a
(26:10):
few things that are interesting under the hood when you
listen to the conference call and you know kind of
hear what McDonald's is actually. Saying Jonathan, mays, who AGAIN
i didn't know this as a, thing but he is
the editor in chief At Restaurant Business, magazine which NOW
(26:31):
i WISH i knew was a thing BECAUSE i feel
LIKE i should subscribe BECAUSE i find.
Speaker 3 (26:35):
This stuff really.
Speaker 2 (26:36):
Interesting this is a tweet from him this morning McDonald's
remains cautious about consumer health in THE us site and
continued bifurcated market and says that'll continue into twenty. Six
traffic among low income customers down double. Digits among higher
income consumers it's up double. Digits so even within, McDonald's
(26:57):
we're hearing the same thing That marriott's telling, us the
same thing That delta is telling, us the same thing
That chipotle's telling, us which, is if you are young
and low on the income, spectrum spending is dropping like a.
Rock if you are older and or wealthier or higher,
income you're not really impacted right. Now and this is
(27:21):
the story everyone's telling. Us i've yet to find any
company out there in the consumer space that it's, like,
yeah like we're can seeing, consistent you, know things across all.
Demos the banks are telling, us, yeah consumer spending continues
to be growing four to six, percent but it definitely
is something where those folks and families that are earning
(27:43):
more are making up the bulk of that growth and
everyone else is just feeling like.
Speaker 4 (27:48):
Crap and you might be, wondering how does McDonald's know.
This they don't ask me WHAT i make WHEN i
go in, there and the answer is census, data which
you actually can't get right. NOW i just went to
the usual site and it's.
Speaker 3 (27:59):
It's not just census. Data, Okay so what else?
Speaker 4 (28:01):
Is if it were me somebody asked me to do,
THIS i go to your zip, Code i'd get the
sense of, Data i'd get the income, breakdown and THEN
i would just assume that every dollar spent there is
spent by top, earners et, cetera et. Cetera based on the.
End what else do they?
Speaker 2 (28:13):
Use there are companies out there that specialize in trying
to match credit card and debit card transactions to specific
individuals in order to create models of their spending. Patterns,
okay so so my guess is McDonald's probably has one
(28:34):
of these on.
Speaker 4 (28:34):
Return if you use a credit, card they might be
accessing and being shared with your credit card company by.
Speaker 2 (28:40):
YOU i would say it's highly likely that a company
IS i thought it was All sensus. Data, NO i
mean they probably started with, that but in the last
fifteen years or SO i arned. It it's there are
companies that basically they aggregate online you, know like traffic
data with credit card, data with social media soas and
(29:00):
they try to basically.
Speaker 3 (29:01):
Build a model of who you. Are it's, creepy it's,
weird AND i wish it didn't.
Speaker 2 (29:08):
Exist but these companies are out there that do that
stuff as, well AND i would be shocked if the
majority Of fortune five hundred consumer companies are not paying
one of them for that data as, well just because like,
it's it's it's hugely valuable despite its creep factor which is.
Speaker 3 (29:27):
High so there's. That let's, see let's take a. Break
when we come, back let's do a little bit of stack.
Speaker 1 (29:35):
Roulette find daily interviews and full shows of The Financial
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Missed this is The Financial Exchange Radio. Network The Financial
exchange is now available every day from eleven to. Noon
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(29:56):
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Speaker 5 (30:12):
Dav FIVE k is sold, out but you can still
help our Great american. Heroes the race is This saturday
At Castle, island and you can visit dav fivek Dot
boston to make a donation of any amount to support our.
Troops your gifts help fund free rides to medical appointments
for veterans and the nation's first dav leadhousing initiative providing
(30:32):
homes for single veterans and veteran. Families go to dav
fivek Dot boston and make your donation, Today, MARK i
got something for stack.
Speaker 4 (30:42):
Roulette thank, god because mine's.
Speaker 3 (30:44):
WEAK i want to talk about the stream. Ring this
Was this was.
Speaker 2 (30:50):
UNVEILED i don't know yesterday. Whenever the premise of it
is it's a smart ring that you wear on your index.
FINGER i don't know why they say you have. To
you could put it on any. FINGER i would, imagine,
like you don't have to wear it on your index.
Finger you could go full like Doctor evil and put
it on your pinky if you.
Speaker 4 (31:09):
Wanted to strong pulse there stronger.
Speaker 2 (31:11):
Signals don't, know but basically it allows you to like
touch the side of it and then you talk into
it and it records your thoughts into a notes app
on your. Phone, okay why we need THIS i don't really,
know Because i'm sure that we don't all just want
to be walking around in public like holding our finger
(31:33):
talking to our.
Speaker 4 (31:34):
Finger you.
Speaker 2 (31:35):
KNOW i MEAN i do this because, WELL i love you,
know Mister, friendly like it's you, know he's my. Favorite but,
LIKE i don't, KNOW i, mean it's just something Where
i'm just not convinced that voice is this next frontier
that people want to move. INTO i feel like people
(31:55):
have been trying to make voice control happen for a,
decade AND i just don't think people want. It quite,
honestly where DOES ai enter the picture on?
Speaker 3 (32:06):
This IT'S ai.
Speaker 2 (32:07):
Powered, yes it uses large language models to help answer your,
questions which can then also go into notes, form so
you can ask it, like, hey what ingredients are needed
for this? Recipe and then you can, say put those
ingredients into a shopping, list, okay as opposed to like
(32:27):
any normal person would, Do, oh let me pull open
my phone and see what INGREDIENTS i need and then
RING i can just copy that and put it into.
Speaker 4 (32:35):
You, know you need to involve Mister.
Speaker 2 (32:37):
Friendly, No SO i don't, Know like this is one
of those WHERE i don't understand the, Use and quite,
HONESTLY i had just given the myriad problems with large
language models trying to do stuff like. This you know
where they, Say, hey the recipe for this needs you,
know three. Rocks well, Like i'm just not.
Speaker 4 (33:00):
Sure that this resounds like too? Many?
Speaker 3 (33:02):
Right you never made was more than two? Rocks?
Speaker 4 (33:05):
Right?
Speaker 3 (33:05):
Never what do you got?
Speaker 1 (33:06):
From? No hang?
Speaker 3 (33:07):
On what do you got?
Speaker 1 (33:07):
For THE?
Speaker 5 (33:08):
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Speaker 3 (34:12):
Com, mark what do you got?
Speaker 4 (34:14):
For this was a little, dry BUT i think it's
worth noting that the yield on the ten year, treasury
and you've pointed this out in your market, Updates, chuck
throughout the, show yield on the tenyure treasury is climbing again.
Today it's said about four point one five or. So
it's notable that it's been climbing over the past several,
days because that may seem confusing to some. People didn't
(34:36):
The fed just cut interest?
Speaker 3 (34:38):
Rates we saw this last?
Speaker 4 (34:40):
Year, yeah we, did and you see it if every so,
often it's nearly half the time in, fact with The
fed will cut shorter term interest rates and longer term
interest rates either don't fall or actually. Rise and it's
a useful reminder that the forces that drive longer term interest,
rates which include expectations of what THE fed will do
in the, future based in turn on what it inflation
(35:00):
is likely to be and the risk associated with holding
a long term. Bond all of those factors drive are in.
Play when short term interest rates are are set by
investors is distinguished from when long term inistrates are said
excuse me as distinguished from short term interest. Rates and
the past several days again have been a reminder that
THE fed virtually controls the short end of the so
(35:21):
called treasury yield, curve but the rates that matter to
home buyers and long term borrowers are determined by the,
market and the market is having different thoughts right.
Speaker 2 (35:34):
Now Burger king braces for the demise of the. PENNY
i don't know why they singled out Burger king on
this piece from The Wall Street, journal but, remember the
penny is going the way of The dodo, extinct and
so companies that traffic in, pennies namely restaurants and retailers
(35:54):
that need them in order to you, know pay exact,
change are trying to figure out what to. Do Uh,
so there's one Burger king operator who has thirty boxes
of pennies like sitting in a safe, somewhere and they
think that'll get them through two months once there are
no more you, know new pennies being produced The again
(36:18):
this here's the thing about. Pennies they generally only go
out from restaurants and. Retailers they don't usually come back
in like most people don't pay with exact. Change and
so this is, why like this Burger king, franchise they
have typically an armored car delivery of pennies that comes
because it's pennies out and you get dollars get in.
Speaker 4 (36:36):
Detailed by the, way as an armored car, guard you're
maybe being sent a. Message, sorry we're thinking about the
guy that has to guard the. Pennies oh, yeah.
Speaker 3 (36:47):
They must tell you what's in the car for your, trip,
right it's a good.
Speaker 4 (36:50):
Point they may, not though you need to.
Speaker 3 (36:53):
KNOW i mean if, if if.
Speaker 2 (36:56):
You're going to a Burger, king you're probably not bringing
con that's not, condiment you, know like you you're probably
not bringing.
Speaker 4 (37:02):
Hundreds, yeah good, point good.
Speaker 3 (37:04):
Point but, yeah is it like does seniority get the
big bank.
Speaker 4 (37:07):
DELIVERIES i would expect, that you would expect, that but,
no you want to give it to the young guy
who can fend off potential. Assailants, well this gets.
Speaker 2 (37:15):
It my long standing question about blimp. Pilots are they
the guys that washed out of flight? School and it's,
like you're gonna get the soft thing that, floats the
pillow in the. Sky, yeah you're gonna get the soft
thing that. Floats don't bump into, anything but if you,
do you'll just bounce right. OFF i know that's not
actually how blimps, work but my mind thinks this, way
like how do you become.
Speaker 4 (37:35):
Blim pilot's union is pissed right.
Speaker 3 (37:36):
Now, well first of, all there's like six of them
in the. World you, know like we're not building The
hindenburg anymore for obvious. Reasons so like where do you
even train to be a blimp?
Speaker 4 (37:48):
Pilot Good year blimp? School yeah, right you, know like there's.
Speaker 3 (37:52):
Not many of these puppies floating. Around so in any,
case thank.
Speaker 2 (37:55):
God restaurants and retailers are trying to figure out what
to do when they can't get new pennies, anymore and
it's kind of, okay like are we just gonna have
to give extra change to? People like do we adjust menu?
Speaker 3 (38:09):
Prices?
Speaker 2 (38:10):
Oh, yeah it's a brave new world with no penny
quick break for the rest of the. Day we'll see
tomorrow on The Financial exchange
The Financial Exchange is produced by Money Matters Radio and
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(00:20):
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(00:42):
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(01:05):
Zada and Mark Vandetti, Chuck Mark.
Speaker 2 (01:11):
Tucker with you here today, and as we take a
look around markets, we've got some green on the board,
not enough to reverse all of yesterday's losses, but the
S and P is up twenty nine points, are a
little less than half a percent, Dow's up about a
tenth of a percent, or forty nine points, and the
NASDAK composite up three quarters of a percent about one
hundred and seventy two points at the moment. Tenure US
(01:34):
Treasury is selling off today, up six point six basis
points to four point one five seven percent, so we've
now got about a quarter percent rise off the recent
lows that we've seen there. Mortgage rates are also back
in the six point three to three percent range. With
this move today, you might be getting close to six',
four but we'll have to see What Mortgage News daily's
(01:56):
afternoon update. SHOWS us there index continuing its recent strength as,
well a point zero four percent and back over one.
Hundred and we've got gold rallying just a touch, today
up twenty six eighty an ounce to thirty nine eighty
seven and thirty, cents so back below four thousand, dollars
but trying to make another run at. It crude oil
(02:18):
up six cents a barrel to sixty dollars and sixty
two cents in THE tripa national averageur gas prices taking
a big jump up over the last couple of, days
up two point six cents a gallon to three dollars
and seven cents and nine tenths of a. CENT i
don't know what's driving. THIS i haven't seen any major,
news But i'm sure there is a refinery outage somewhere
(02:42):
that's calling this since the price of oil has not really,
moved so that's what's going on in broad markets.
Speaker 3 (02:50):
In THE us.
Speaker 2 (02:51):
Economy we continue to see THE us government shut down
now heading into its thirty fifth, day and so so
when you look at, this it's something where we're now
at the LONGEST us government shutdown that we have on. Record,
again like you look at the previous ones that we've,
(03:15):
had the previous, closest the previous longest one that we
had was thirty Four i'm, sorry thirty five days back
in twenty eighteen into early twenty, nineteen and again we're
now at the point where we have we're into the
thirty sixth day of this. Shutdown the economic impact is
(03:38):
not something that is easy to measure, generally you, know
the conventional wisdom is for each week of a shutdown
you see maybe ae point one percent hit TO. Gdp
but it's also not something where we have a lot
of robust data on. This here are the lengths of
shutdowns that we. Have i've seen one, day one, day one,
(04:04):
day three, days three, days four, days six, days sixteen,
days twenty one, days thirty five, days and thirty six.
Days so, ultimately the vast majority of, shutdowns aside from
three of, them have been under.
Speaker 3 (04:23):
Three weeks in.
Speaker 2 (04:24):
Duration SO i don't think you can glean anything about
the economic impact of a three day, shutdown because there
are things that start to happen after thirty forty fifty
sixty days that don't happen after. Three like a three day,
shutdown you do not have missed pay, periods just as an,
Example so, like how would you even model that you're
now getting to the point where you're having multiple missed pay?
(04:44):
Periods and, ULTIMATELY i think there is a point where
the impact becomes. LARGER i don't know what that point,
is AND i don't know how much larger the impact
becomes because we've never been there.
Speaker 3 (04:59):
Before you, know this is The Christopher columbus of.
Speaker 2 (05:04):
Shutdowns it's taking a path not, traveled and you don't
know what you're gonna find at the end.
Speaker 4 (05:10):
Of, it and when you do find, it you mistake
it for something. Else MAYBE i don't know if you
can extend the, metaphor.
Speaker 2 (05:16):
It's, possible but it's it's just something WHERE i don't
know exactly what's going to, happen BUT i can tell
you that each day you go, on it probably gets
more dangerous and it's unclear you know what the impact
ends up.
Speaker 4 (05:31):
Being we don't know what's going on behind the. Scenes
maybe they're close to a meeting of the minds on
the major.
Speaker 3 (05:36):
Issues, YEAH i.
Speaker 2 (05:39):
Wouldn't the betting markets have been stuck for the last
week or. So saying that this thing will last somewhere
in the mid forties number of. Days that's kind of
what we've been seeing since Mid october is, okay like
early to Mid november is when this will resolve.
Speaker 4 (05:56):
ITSELF i will say it occurred to me after reading
election results last, night And i'm a not that this
kind of, analyst but since we're speculating. Here if it's,
okay If i'm, on If i'm A, democrat Which i'm,
not but IF i, WERE i would think we're not
getting blamed for. This we have absolutely no incentive To
so What i'm saying is last night's, results to me
an amateur political, observer not unlike anybody, listening we can
(06:18):
all kind of speculate and have fun seem to make
a resolution in the short term less not more. Likely
they seem to be Doing, okay they're not getting. Blamed
why would?
Speaker 2 (06:27):
They the counter to that is that If democrats already
got through those elections with results that they, wanted then,
okay there's no real incentive for them to continue with
any kind of shut, down and maybe that moves towards
a quicker, Resolution like you can make that.
Speaker 4 (06:45):
Case so why would they cave? Now i'm not. Disagreeing
there's no way would they compromise now.
Speaker 2 (06:51):
TODAY i think that the potential for any short term
political upside might be capp now that the, election like
they may have already gotten what they wanted out of.
It potentially, AGAIN i, yeah we're all speculating on.
Speaker 4 (07:02):
This, YEAH i don't.
Speaker 2 (07:03):
Know the big thing that is out there Is, thanksgiving
and no one wants to be blamed for people not
being able to get to their destinations On. Thanksgiving AND
i think that's, why you, know part of the reason
why betting markets have kind of settled on you, know
this forty five days that gets things resolved somewhere towards
the end of next week or early the week, after
(07:26):
so that things resume normal operations By thanksgiving week and
you don't have air traffic controllers OR tsa agents calling
out sick and a bunch of people stranded at airports
because airspaces are closed and things like.
Speaker 4 (07:38):
That, NOW i don't know what the individual players, here
what their motivations. Are if they're acting on, principle sure
then they might just think it's possibly doing some pain
is worth it if the longer term gain exceeds the
pain short term. PAIN i don't.
Speaker 3 (07:52):
Know, YEAH i don't.
Speaker 2 (07:54):
Know none of us know how long this is going to,
last but it seems pretty clear it's not going to
be resolved. Today and, again each day that you go
on is the potential for more financial things to become
problematic for, Individuals and if enough individuals have problematic financial,
situations then it becomes a problem, locally and if enough
localities have, situations then it develops into a national.
Speaker 4 (08:17):
Yea and it could contribute to the onset of. Recession
government spends a little over twenty cents of every dollar
spent at the federal.
Speaker 3 (08:24):
Level and, money so that is still being spent right,
now by the.
Speaker 4 (08:27):
Way, yeah but even you, know a little bit on the. Margin,
yes if growth is weak to begin, with could be
enough to tip the economy into a different. State and
then once you're in that different, state it's not just
a matter of snap in your fingers to break out of. It.
Correct so you been saying, This you've been saying at
some point you plod along at a rate that's just
a function of, time it's just a straight. Line then
(08:48):
at some point the little path you're on is no
longer a straight. Line it slopes upward. Sharply and nobody
saw that. Coming when is that bend? It does it even?
Speaker 3 (08:58):
Exist?
Speaker 2 (08:58):
Yeah so this is where we are right now with
the shutdown and its economic. Impact as far as you
know how long this thing goes, ON i don't. Know
i'm not going to profess to. Know and when it's,
over we'll tell. You it's about ALL i got on it.
Speaker 3 (09:16):
To take a quick.
Speaker 2 (09:17):
Break when we come. Back something else THAT i don't
know how it's going to turn. Out The trump tariffs
are now in front of The Supreme court. TODAY i
am not a tariff, scholar SO i can't tell you
what's going to. Happen but we'll tell you what's at,
stake some of the possible permutations of where things end.
Speaker 3 (09:34):
Up and we've got trivia when we.
Speaker 1 (09:36):
Return The Financial exchange is life on serious XM's Business
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(09:59):
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Financial Exchange Radio.
Speaker 5 (10:12):
Network let's do a little bit of trivia here on
The Financial exchange on this. Day in nineteen thirty, Five
Parker brothers launched.
Speaker 4 (10:24):
The board Game.
Speaker 5 (10:25):
Monopoly everyone knows boardwalk and Park place are the most
expensive properties on the. Board so our trivia question, today
how much does it cost to buy boardwalk In? Monopoly once,
again how much does it cost to Buy boardwalk In? Monopoly,
uh be the fourth person today At texas at sixty
(10:47):
one seven three six two thirteen eighty five with the correct,
answer and you win A Financial Exchange SHOW t. Shirt once.
Again the fourth correct response To texas to the number
six one seven three six two thirteen eighty five will
win THAT t. Shirt see complete contest rules At Financial
Exchange show dot. Com and want to remind everybody out
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(11:10):
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just hit that subscribe.
Speaker 2 (11:21):
Button as of this very, moment the tariffs imposed By
President trump earlier this, year or at least a set of,
them are currently being heard in A Supreme court argument
that is being argued right. Now, Obviously mark AND i
are you, know doing our, show so we're not listening to,
(11:42):
It nor Are mark AND i constitutional. Scholars it's it's you,
know we're we're we don't have law. Degrees this isn't
really about, economics so we're not going to tell you
here's what we think will or won't, happen Because mark
AND i don't have any unique insight. There WHAT i
can tell you is that the case is being heard right,
(12:03):
now and based, on you, know kind of what we've
heard from people, who do you, know specialize in this,
thing a ruling is likely to come somewhere towards the
end of this year or early IN q, One so
probably two to three months from now is what is.
Expected questions that are out there that will. Matter number,
(12:23):
one are The trump tariffs legal or? Not that's you,
know kind of the whole crux of. It if they,
are then things continue as they. Are if, not this
is where things get interesting in terms of is there
a potential, remedy meaning do companies Receive are they are
companies entitled to a refund of any tariffs that have
(12:47):
already been paid by? Them if, so what is the
timeline for? That because remember that money is not just
sitting IN us government. Coffers THE us government would have
to likely issue bonds in order to issue tech treasuries
in order to get that money. Back number, two if
companies were harmed by, this were individuals also harmed in
(13:09):
the purchase of tariff? Products and would individuals be entitled
to relief from either companies or THE us. GOVERNMENT i
have absolutely no idea what would the process and timeline
for that look? Like, again no, idea but this is
one of the things that is going to be out
there as a. Question another, one if this particular approach
(13:32):
is ruled to be unconstitutional or illegal by the executive,
branch are there other avenues by which they can impose
tariffs of similar nature that would have that would uphold you,
know the legality or constitutionality that you need in order
for them to be. Implemented there, are you, know a
number of different paths that the executive branch can potentially
(13:55):
use to impose. Tariffs and so just because these may
be vacate doesn't mean that they can't be reimposed in
a different fashion after a different means of study from
THE Us Trade representative's office or other similar, things.
Speaker 4 (14:08):
Or you, Know god, forbid just put a bill in
front Of congress or get them to pass The. Congress
why can't they do that? Tomorrow?
Speaker 2 (14:14):
Correct Or congress could pass a bill saying we want
to these Tere republicans do control EVERY i don't like the,
tariffs BUT i couldn't argue with the process.
Speaker 4 (14:21):
Followed if indeed they did it that.
Speaker 2 (14:22):
Way SO i think these are all questions that are out,
there and they are not ones THAT i have answers.
Speaker 3 (14:31):
Too we're going to hear what The Supreme.
Speaker 2 (14:32):
Court has to say probably in two or three months on,
this and once we get to that, point we'll have.
Clarity but you, KNOW i look around on social media
and freaking like everyone instantly this morning became a constitutional,
scholar like everyone's, saying definitively this is. Not BUT i
am happy to say. THAT i don't know HOW i.
Speaker 4 (14:54):
WILL i will say one. Thing the idea that a
trade deficit is an emergency is. Preposterous we've had a
trade deficit since the nineteen. Seventies the reason is the
difference between what we save and investment. Opportunity in this.
Economy when you import, capital you have to at the
same time import goods and. Services you pay for those
goods and services with your home. Currency that home currency
(15:16):
gets recycled back into your government's, debt for, EXAMPLE us,
treasuries it gets recycled back into foreigners PURCHASING us real.
Estate so the trade, deficit which if you google its
history and you just look at the so called time
series its value over, time you see something happened in
the nineteen. Seventies what did capital controls were liberalized in
(15:36):
the nineteen, Seventies japan was free to start investing In
america the way it wasn't. Before they have huge excess.
Savings that excess savings came. Here our dollars went out
and Bought sony And toyota and other. Products so the
trade deficit is a function of the international flow of
payments and, capital and a function two of how much we.
Save we don't save. Enough if you want to fix
the trade, deficit you fix the savings. Problems there's a
(16:00):
certain amount of economic literacy underlying the government's argument that
this is some kind of national, emergency also belied by
the fact that again we've had a trade deficit for
fifty years THAT i feel perfectly comfortable with commenting.
Speaker 2 (16:12):
On so, ultimately again going to be two to three
months before we get a ruling on this betting markets
are saying with about a two to one, edge you,
know call it sixty forty sixty five thirty, five that
they expect to see these tariffs struck. Down but, AGAIN
i don't know that sixty five to thirty five is particularly,
informative just because a these betting markets can be wrong
(16:35):
and be something that has a thirty five percent chance
of happening still happens two and a half times in a.
Week if you're trying, to you, know figure, out you,
know how many days of the week would this. Happen
that's still not an infrequent thing to. HAPPEN a thirty
five percent chance is not likely to, happen but it's
it's not something where you're, like, oh like that's you,
know a tail, event like they could, be you, know
(16:55):
potentially declared. Constitutional SO i don't know how this is
going to play, out but we'll know probably Late. December,
january Early february is kind of the tail end of
Where i've heard this may end up being ruled. On
but we're looking somewhere in that.
Speaker 3 (17:11):
Range let's.
Speaker 2 (17:13):
SEE i think that's enough tariff talk for. Now how
The fed can change the k shaped, Economy i'm not
sure they. Can THE fed doesn't have the tools to
change the case shaped to.
Speaker 4 (17:23):
Coomy THE fed can influence, demand and it's a pretty
blunt instrument monetary. Politics you can't engineer equitable. Outcomes you
can't make sure this group does better relative to. Another
one of the big criticisms is recently articulated by A
treasure secretary bescent we're, percent is that THE fed is
(17:45):
experienced mission creep over the past i'll just say ten.
Years and he's absolutely right about. That all these other.
Objectives he didn't put it this WAY i. Would THE
fed simply can't attain and it should focus on keeping
inflation low and. Stable so mission has not been been.
Speaker 2 (18:01):
Helpful and you, know no matter what the situation is
with interest, rates they're always, wrong according to, everyone you.
KNOW i remember back during the twenty, tens for almost
the whole, decade ALL i heard consistently, is, oh interest
(18:23):
rates are too. Low you're punishing savers and you, know
especially people on fixed incomes that rely on, CDs like
this is just. Awful and then for the last you,
know three, years ALL i hear, is.
Speaker 3 (18:37):
Oh interest rates are too.
Speaker 2 (18:39):
High no one can, borrow no one can get a, mortgage,
like it's impossible to do. This and it's, like, guys
what's what's the what's the magical interest?
Speaker 3 (18:48):
Rate that's just? Right you, know like what's what? What
what is?
Speaker 2 (18:52):
It, like what's what's the one where you, say, ah
we've gotten?
Speaker 4 (18:56):
It? Likes but it's it's a theoretical. Concept is it
the unicorn? Rate, well our star the neutral? Rate which
what the feds.
Speaker 3 (19:04):
Nor people stop complaining about.
Speaker 4 (19:07):
It different people complain for different, reasons, right interestrates are
always too, long.
Speaker 2 (19:10):
But you always have these pieces published in the financial
publications being like here's why interest rates are hurting these.
People and it's, like, guys like there is no interest
rate that isn't a positive for some groups and a
negative for. Others can we just acknowledge? That and the
answer is, no because we always have to be upset about.
Speaker 3 (19:28):
It let's take a quick.
Speaker 2 (19:30):
Break when we come, back we got the trivia, answer
and we're Doing Wall Street, watch.
Speaker 1 (19:39):
Bringing the latest financial news straight to your. Radio every.
Day it's The Financial exchange on The Financial Exchange Radio.
Network time now For Wall Street, watch a complete look
at what's moving markets so far today right here on
The Financial Exchange Radio.
Speaker 5 (19:57):
Network market's trying to rebound after yesterday's tech driven sell.
Off Wall street's also reacting to a stronger than EXPECTED
Adp private payrolls report posted earlier this. Morning right, now
The dow is up a tenth of a percent or
fifty four, POINTS smp five, hundred up about a half
a percent or thirty four, POINTS nasdac up eight tenths
(20:20):
of one percent or one hundred and eighty eight, POINTS
rusted two thousands up six tenths of one, PERCENT Dan
Your treasure willed up six bases points now at four
point one five to three, percent and crude oil flat
edging higher training at sixty dollars in fifty eight cents a.
Barrel shares and Chip maker off about half a percent
(20:41):
after the company beat third quarter earnings and revenue. Forecasts,
however sentiment took a slight hit after AMD's adjusted margin
guidance for the current quarter came in line with. Expectations
sticking with the chip, sector Where Super microcomputer posted quarterly
results that missed, estimates sending shares down over eight. Percent,
(21:01):
meanwhile McDonald's reported third quarter earnings and revenue that missed. Expectations,
however the company says value.
Speaker 3 (21:07):
Meals and new.
Speaker 5 (21:07):
Products we're helping revive sales in a challenging environment for
fast food. BUSINESS us same store sales increase two point four,
percent stronger than analysts. Anticipated McDonald's is now up too.
PERCENT a fast casual, Restaurant, cava offered a lower full year,
guidance downwardly revising its same store sales outlook in addition
(21:28):
to a lower profit margin. Range cava now down one. Percent,
Elsewhere pinterest plunging twenty one percent after the social media
company reported weaker than expected, earnings and after today's, clothes
we'll see more results from App, Lovin', Qualcomm, Armholdings, robinhood
and Door. Dash I'm Tucker silva and that Is Wall Street.
(21:49):
Watch and in the previous, segment we asked you the trivia,
question how much does it cost to Buy boardwalk in?
Monopoly that would be four hundred. Dollars tom From Spencer
masses are winner today taking home The Financial Exschane SHOW t.
Shirt congrats To. Tom we play trivia every day here
in The Financial. Exchange see complete contest rules At Financial
Exchange show dot.
Speaker 2 (22:10):
Com what's the rent you receive In boardwalk if you
haven't developed to a hotel two, hundred two, thousand two.
Hundred what do you THINK i? Haven't what do you
think this Is mediterranean? Avenue my, goodness go directly to,
Jail do not pass.
Speaker 4 (22:27):
Go that's all rent controlled now Under Mom. DAMIE i
thinks they're gonna have to REISSUE i mean they're gonna
have to reissue the Game, MONOPOLY Momdammi, monopoly the fascinating
nobody gets ten, dollars.
Speaker 2 (22:37):
The fascinating thing About so here's the actual interesting thing About.
Monopoly if you, do you have either of you ever
read about the history of its.
Speaker 3 (22:44):
Development, no.
Speaker 2 (22:48):
Let me make sure THAT i quote this, correctly just
BECAUSE i.
Speaker 3 (22:52):
Wanted wasn't it called something else?
Speaker 4 (22:53):
Originally hang, on.
Speaker 2 (22:55):
Let me pull from here we. Go this is from
The wikipedia, pages because AGAIN i was just looking for it.
Quickly the history Of monopoly can be traced back to
nineteen oh, three where The american anti Monopolist lizzie McGhee
created a game Called The Landlord's games that was what
it was originally, called that she hoped would explain the
(23:15):
single tax theory Of Henry george is laid out in
his Book progress And. Poverty she devised the key features
of the. Game it was intended as an educational tool
to illustrate the negative aspects of concentrating land in private.
Monopolies does it actually do that or it did the exact.
Speaker 4 (23:35):
Opposite Fun the crazy thing about capitalism, is and others
have made this. Observation you can eradicate it like you
try to eradicate all the weeds in your, yard but
it always springs. Up it's just in our nature to
be inquisitive. Competitive it doesn't have to be. Unhealthy you
could channel it in positive. Ways, no but so just
this that reminded me of that observation because you could
(23:58):
try to kill. It you could try to train it
out of kids with liberal or left wing inappropriately aggressive
left WING i mean, professors even left wing professors generally encourage.
Debate it's a myth that they. Don't but you could
be in appropriately left. Wing you could try to beat
it out of your, students and they always come back
to it because it's it's somehow baked into OUR, dna.
Speaker 2 (24:16):
And it's something where when you look AT i come
back to this quite. Often the idea that in terms
of what we found generally to produce the best outcomes it.
Is oh, yeah it is neither completely unregulated capitalism nor
completion state run. Government you are trying to create competitive
(24:36):
markets because completely unregulated capitalism leads to you, know the
big railroads and everything where it's just you get, monopolistic
and you do run into problems there as well because.
Speaker 3 (24:45):
Of a latch of.
Speaker 4 (24:45):
Competition try to curtail, that.
Speaker 2 (24:47):
Sir so it's, okay how do we create competitive markets
so that we can, compete you, know and have a
playing field where we can do. That BUT i just
find it great that monopoly was originally. Developed is, like,
hey don't do. This everyone's kind of, like, nah this is.
Great LIKE i want to own, boardwalk like of, course
let me own. Both LIKE i want boardwalk in park,
Place like, yeah you'll trade me for. That you can
(25:08):
have the, utilities, fine no.
Speaker 4 (25:10):
Problem it's like you give kids a cautionary tale about
drugs or something and they just use it as an instruction.
Manual they take away what not all.
Speaker 2 (25:18):
Kids but you know WHAT i, Mean, yes let's talk
a little bit about, McDonald's which first gotta be completely.
Honest woke up earlier this week AND i said this
On Monday Show, mark did you realize That uber has
twice the revenue that McDonald's.
Speaker 4 (25:31):
DOES i can't say that it ever would have acred
to me to make that. Comparison, no they.
Speaker 2 (25:36):
Both reported earnings this, week so it's the only reason
THAT i noted, it AND i was like, Wow LIKE
i would not have thought that to be the.
Speaker 3 (25:42):
Case McDonald's like.
Speaker 2 (25:45):
McDonald's like, this like like, oh like they are like Big,
burger like Big, beef And uber you kind of think
of as like this scrappy upstart just fifty billion dollars
in revenue a. Year McDonald's is like twenty six Wild,
anyways McDonald's reported earnings this. Morning they were generally, fine
which is why the stock is rallying, Today but a
(26:10):
few things that are interesting under the hood when you
listen to the conference call and you know kind of
hear what McDonald's is actually. Saying Jonathan, mays, who AGAIN
i didn't know this as a, thing but he is
the editor in chief At Restaurant Business, magazine which NOW
(26:31):
i WISH i knew was a thing BECAUSE i feel
LIKE i should subscribe BECAUSE i find.
Speaker 3 (26:35):
This stuff really.
Speaker 2 (26:36):
Interesting this is a tweet from him this morning McDonald's
remains cautious about consumer health in THE us site and
continued bifurcated market and says that'll continue into twenty. Six
traffic among low income customers down double. Digits among higher
income consumers it's up double. Digits so even within, McDonald's
(26:57):
we're hearing the same thing That marriott's telling, us the
same thing That delta is telling, us the same thing
That chipotle's telling, us which, is if you are young
and low on the income, spectrum spending is dropping like a.
Rock if you are older and or wealthier or higher,
income you're not really impacted right. Now and this is
(27:21):
the story everyone's telling. Us i've yet to find any
company out there in the consumer space that it's, like,
yeah like we're can seeing, consistent you, know things across all.
Demos the banks are telling, us, yeah consumer spending continues
to be growing four to six, percent but it definitely
is something where those folks and families that are earning
(27:43):
more are making up the bulk of that growth and
everyone else is just feeling like.
Speaker 4 (27:48):
Crap and you might be, wondering how does McDonald's know.
This they don't ask me WHAT i make WHEN i
go in, there and the answer is census, data which
you actually can't get right. NOW i just went to
the usual site and it's.
Speaker 3 (27:59):
It's not just census. Data, Okay so what else?
Speaker 4 (28:01):
Is if it were me somebody asked me to do,
THIS i go to your zip, Code i'd get the
sense of, Data i'd get the income, breakdown and THEN
i would just assume that every dollar spent there is
spent by top, earners et, cetera et. Cetera based on the.
End what else do they?
Speaker 2 (28:13):
Use there are companies out there that specialize in trying
to match credit card and debit card transactions to specific
individuals in order to create models of their spending. Patterns,
okay so so my guess is McDonald's probably has one
(28:34):
of these on.
Speaker 4 (28:34):
Return if you use a credit, card they might be
accessing and being shared with your credit card company by.
Speaker 2 (28:40):
YOU i would say it's highly likely that a company
IS i thought it was All sensus. Data, NO i
mean they probably started with, that but in the last
fifteen years or SO i arned. It it's there are
companies that basically they aggregate online you, know like traffic
data with credit card, data with social media soas and
(29:00):
they try to basically.
Speaker 3 (29:01):
Build a model of who you. Are it's, creepy it's,
weird AND i wish it didn't.
Speaker 2 (29:08):
Exist but these companies are out there that do that
stuff as, well AND i would be shocked if the
majority Of fortune five hundred consumer companies are not paying
one of them for that data as, well just because like,
it's it's it's hugely valuable despite its creep factor which is.
Speaker 3 (29:27):
High so there's. That let's, see let's take a. Break
when we come, back let's do a little bit of stack.
Speaker 1 (29:35):
Roulette find daily interviews and full shows of The Financial
exchange on our YouTube. Page subscribe to our page and
get caught up on anything and everything you might have.
Missed this is The Financial Exchange Radio. Network The Financial
exchange is now available every day from eleven to. Noon
Non serious XM's Business Radio channel one thirty. Two stay
(29:56):
informed about the latest From Wall, street fiscal, policy and
breaking business news every. Day The Financial exchange Is LIFE
I serious XM's Business Radio channel one thirty. Two this
is The Financial Exchange Radio. Network this year's.
Speaker 5 (30:12):
Dav FIVE k is sold, out but you can still
help our Great american. Heroes the race is This saturday
At Castle, island and you can visit dav fivek Dot
boston to make a donation of any amount to support our.
Troops your gifts help fund free rides to medical appointments
for veterans and the nation's first dav leadhousing initiative providing
(30:32):
homes for single veterans and veteran. Families go to dav
fivek Dot boston and make your donation, Today, MARK i
got something for stack.
Speaker 4 (30:42):
Roulette thank, god because mine's.
Speaker 3 (30:44):
WEAK i want to talk about the stream. Ring this
Was this was.
Speaker 2 (30:50):
UNVEILED i don't know yesterday. Whenever the premise of it
is it's a smart ring that you wear on your index.
FINGER i don't know why they say you have. To
you could put it on any. FINGER i would, imagine,
like you don't have to wear it on your index.
Finger you could go full like Doctor evil and put
it on your pinky if you.
Speaker 4 (31:09):
Wanted to strong pulse there stronger.
Speaker 2 (31:11):
Signals don't, know but basically it allows you to like
touch the side of it and then you talk into
it and it records your thoughts into a notes app
on your. Phone, okay why we need THIS i don't really,
know Because i'm sure that we don't all just want
to be walking around in public like holding our finger
(31:33):
talking to our.
Speaker 4 (31:34):
Finger you.
Speaker 2 (31:35):
KNOW i MEAN i do this because, WELL i love you,
know Mister, friendly like it's you, know he's my. Favorite but,
LIKE i don't, KNOW i, mean it's just something Where
i'm just not convinced that voice is this next frontier
that people want to move. INTO i feel like people
(31:55):
have been trying to make voice control happen for a,
decade AND i just don't think people want. It quite,
honestly where DOES ai enter the picture on?
Speaker 3 (32:06):
This IT'S ai.
Speaker 2 (32:07):
Powered, yes it uses large language models to help answer your,
questions which can then also go into notes, form so
you can ask it, like, hey what ingredients are needed
for this? Recipe and then you can, say put those
ingredients into a shopping, list, okay as opposed to like
(32:27):
any normal person would, Do, oh let me pull open
my phone and see what INGREDIENTS i need and then
RING i can just copy that and put it into.
Speaker 4 (32:35):
You, know you need to involve Mister.
Speaker 2 (32:37):
Friendly, No SO i don't, Know like this is one
of those WHERE i don't understand the, Use and quite,
HONESTLY i had just given the myriad problems with large
language models trying to do stuff like. This you know
where they, Say, hey the recipe for this needs you,
know three. Rocks well, Like i'm just not.
Speaker 4 (33:00):
Sure that this resounds like too? Many?
Speaker 3 (33:02):
Right you never made was more than two? Rocks?
Speaker 4 (33:05):
Right?
Speaker 3 (33:05):
Never what do you got?
Speaker 1 (33:06):
From? No hang?
Speaker 3 (33:07):
On what do you got?
Speaker 1 (33:07):
For THE?
Speaker 5 (33:08):
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(33:30):
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(33:54):
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Speaker 3 (34:12):
Com, mark what do you got?
Speaker 4 (34:14):
For this was a little, dry BUT i think it's
worth noting that the yield on the ten year, treasury
and you've pointed this out in your market, Updates, chuck
throughout the, show yield on the tenyure treasury is climbing again.
Today it's said about four point one five or. So
it's notable that it's been climbing over the past several,
days because that may seem confusing to some. People didn't
(34:36):
The fed just cut interest?
Speaker 3 (34:38):
Rates we saw this last?
Speaker 4 (34:40):
Year, yeah we, did and you see it if every so,
often it's nearly half the time in, fact with The
fed will cut shorter term interest rates and longer term
interest rates either don't fall or actually. Rise and it's
a useful reminder that the forces that drive longer term interest,
rates which include expectations of what THE fed will do
in the, future based in turn on what it inflation
(35:00):
is likely to be and the risk associated with holding
a long term. Bond all of those factors drive are in.
Play when short term interest rates are are set by
investors is distinguished from when long term inistrates are said
excuse me as distinguished from short term interest. Rates and
the past several days again have been a reminder that
THE fed virtually controls the short end of the so
(35:21):
called treasury yield, curve but the rates that matter to
home buyers and long term borrowers are determined by the,
market and the market is having different thoughts right.
Speaker 2 (35:34):
Now Burger king braces for the demise of the. PENNY
i don't know why they singled out Burger king on
this piece from The Wall Street, journal but, remember the
penny is going the way of The dodo, extinct and
so companies that traffic in, pennies namely restaurants and retailers
(35:54):
that need them in order to you, know pay exact,
change are trying to figure out what to. Do Uh,
so there's one Burger king operator who has thirty boxes
of pennies like sitting in a safe, somewhere and they
think that'll get them through two months once there are
no more you, know new pennies being produced The again
(36:18):
this here's the thing about. Pennies they generally only go
out from restaurants and. Retailers they don't usually come back
in like most people don't pay with exact. Change and
so this is, why like this Burger king, franchise they
have typically an armored car delivery of pennies that comes
because it's pennies out and you get dollars get in.
Speaker 4 (36:36):
Detailed by the, way as an armored car, guard you're
maybe being sent a. Message, sorry we're thinking about the
guy that has to guard the. Pennies oh, yeah.
Speaker 3 (36:47):
They must tell you what's in the car for your, trip,
right it's a good.
Speaker 4 (36:50):
Point they may, not though you need to.
Speaker 3 (36:53):
KNOW i mean if, if if.
Speaker 2 (36:56):
You're going to a Burger, king you're probably not bringing
con that's not, condiment you, know like you you're probably
not bringing.
Speaker 4 (37:02):
Hundreds, yeah good, point good.
Speaker 3 (37:04):
Point but, yeah is it like does seniority get the
big bank.
Speaker 4 (37:07):
DELIVERIES i would expect, that you would expect, that but,
no you want to give it to the young guy
who can fend off potential. Assailants, well this gets.
Speaker 2 (37:15):
It my long standing question about blimp. Pilots are they
the guys that washed out of flight? School and it's,
like you're gonna get the soft thing that, floats the
pillow in the. Sky, yeah you're gonna get the soft
thing that. Floats don't bump into, anything but if you,
do you'll just bounce right. OFF i know that's not
actually how blimps, work but my mind thinks this, way
like how do you become.
Speaker 4 (37:35):
Blim pilot's union is pissed right.
Speaker 3 (37:36):
Now, well first of, all there's like six of them
in the. World you, know like we're not building The
hindenburg anymore for obvious. Reasons so like where do you
even train to be a blimp?
Speaker 4 (37:48):
Pilot Good year blimp? School yeah, right you, know like there's.
Speaker 3 (37:52):
Not many of these puppies floating. Around so in any,
case thank.
Speaker 2 (37:55):
God restaurants and retailers are trying to figure out what
to do when they can't get new pennies, anymore and
it's kind of, okay like are we just gonna have
to give extra change to? People like do we adjust menu?
Speaker 3 (38:09):
Prices?
Speaker 2 (38:10):
Oh, yeah it's a brave new world with no penny
quick break for the rest of the. Day we'll see
tomorrow on The Financial exchange
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