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13:55
PDT

Unity among New York sports teams highlighted during 9/11 anniversary.

New York Rangers Islanders Ingram Breast Cancer Center The Rangers New Yorkers

– Athletes are increasingly involved in philanthropic efforts.

– Breast cancer research support reflects broader social responsibility trends.

– Community engagement can enhance brand loyalty for sports franchises.

– Potential shifts in consumer spending towards health and wellness.

community engagementphilanthropyhealth and wellness

▸ Full transcript

The energy is always great, so it's fun to come back every year to support not only my own foundation but so many others. On the court, we definitely felt like we needed to provide something even more than we did because we needed to provide just an outlet, a sense of thinking about something else and hopefully a little bit more inspiration just to keep moving on. Off the court, you go back into feeling like we're part of this family that really got impacted. All of us, even as athletes, had friends and families who were impacted as well, and you wanted to just be walking alongside them as well, even off the court. When 9/11 happened, all the teams in New York came together. The Rangers and the Islanders stood on the blue line together, and that feeling about New York hasn't changed in 25 years. Yes, we compete, but New York is blessed to have 13 professional sports teams, and all of them have the same purpose when it comes to 9/11. We're all brothers, sisters, and we're all New Yorkers, and that's the most important thing. We always have to remember. So, 25 years later, I asked to be here. I'm happy to be here, and also they're willing to support breast cancer research, which is a huge passion of mine, and I'm so grateful for the generosity for the Ingram Breast Cancer Center and the research there.

Analysis

The 25th anniversary of 9/11 has brought together New York's professional sports teams, emphasizing unity and community support in the face of tragedy. Athletes are leveraging their platforms to inspire and contribute to causes like breast cancer research, showcasing the intersection of sports and social responsibility.

Smart money should note the potential for increased philanthropic engagement from athletes and organizations, which can enhance brand loyalty and community ties. This trend may also influence consumer behavior and spending patterns in related sectors, particularly in health and wellness initiatives.

13:54
PDT

Fed hawks are concerned about inflation in the service sector.

Bloomberg Canterford New York City September 11th Federal Reserve AI Trust Bloomberg Long Park Avenue New York Gerald Charity Day FEDFUNDS PRIVATE

– The economy is showing signs of strength, influencing market sentiment.

– High-profile charity events reflect societal impacts of historical events.

– Public sentiment may shift due to increased awareness of social responsibility.

– Upcoming Fed decisions are critical for market direction.

Fed policyservice sector inflationsocial responsibility

▸ Full transcript

Invest like the future is watching. For my good sake, according to the AI, I like the future where humans remain in charge, especially about moral choices and societal choices. And we have a tool for this. It's called democracy. The central question for this committee is whether we are sufficiently restrictive. It is a uniquely complicated moment; the markets are a discounting mechanism. Hawks at the Fed are worried about service sector inflation. Trust Bloomberg to bring you the fastest coverage and exclusive analysis. The economy is getting stronger; the data is incredibly important. He's insisted that he cares about inflation. Tune in to Bloomberg surveillance; the Fed decides starting at 1:30 p.m. Eastern. Long Park Avenue today, athletes, celebrities, and New York icons participated in Canterford's Gerald Charity Day today as New York City and the country remembers September 11th, 25 years later. I got a chance to catch up with some of those names about the event.

Analysis

The Fed is facing pressure regarding inflation as the economy shows signs of strength, with market participants closely monitoring upcoming decisions. The participation of high-profile figures in charity events highlights the ongoing societal impact of historical events like September 11th, which may influence public sentiment and economic behavior.

Smart money should note the Fed's hawkish stance amidst service sector inflation concerns, indicating potential interest rate adjustments. Additionally, the juxtaposition of charity events with economic discussions suggests a growing awareness of social responsibility among investors, which could shape future market trends.

13:52
PDT

1.5 million workers have seen wage increases due to the movement for fair wages.

Saru Jayaraman Restaurant Opportunity Center of New York One Fair Wage Windows on the World Denny's National Restaurant Association MIT Living Wage Calculator California Alaska Montana Nevada Minnesota

– Federal minimum wage legislation has not been updated since 2009.

– Seven states have eliminated the sub-minimum wage for restaurant workers.

– Economic studies show that states with full minimum wage laws have thriving restaurant industries.

– The restaurant industry's profitability is challenged by thin margins despite wage increases.

labor market dynamicsminimum wage policy

▸ Full transcript

It's just for rich people. How do you know what to choose? We get a lot of smart people together. We're analyzing all of the stats.

Analysis

The discussion highlights the ongoing struggle for fair wages in the restaurant industry, emphasizing the need for a full minimum wage for workers. The movement, which gained momentum post-9/11, has successfully raised wages for 1.5 million workers, yet federal action remains stagnant since 2009.

13:50
PDT

States with full minimum wage policies are experiencing growth in their restaurant industries.

Denny's Saru Jayaraman One Fair Wage National Restaurant Association California New York Alaska Montana Nevada Minnesota Chicago DC META PRIVATE

– Denny's CFO reported better performance in California due to full minimum wage practices.

– The movement for a living wage is gaining traction, especially post-pandemic.

– Historical wage structures are being challenged, indicating potential regulatory changes.

– Economic stability and worker satisfaction are increasingly linked to wage policies.

wage policyrestaurant industry growthlabor market dynamics

▸ Full transcript

Their own economic data, but the meta studies of all the economics show that the states that have already done this have booming restaurant industries. It's really hard to deny that California's restaurant industry is not growing. In fact, when you say booming, I mean, you talk to restaurateurs, they'll say that their margins are like this thin. Everywhere, here too. That's not different in any state. In 2021, while the National Restaurant Association was telling Congress we can't pay a minimum wage, the CFO of Denny's told shareholders on an analyst's call, "Actually, Denny's California outperforms the system because we pay our workers a full minimum wage with tips on top and guess what? They can afford to bring their families to eat at Denny's." All right. Well, Saru, this is an issue that obviously still has a long way to go, but obviously it's come a long way. That's right, 25 years since, and appreciate you joining us. Thank you. Oh, Saru Jayaraman is One Fair Wage co-founder and president. When we come back, we continue our coverage with some of the voices that we heard at Counterfeit Sterile Charity Day. This is Bloomberg. Your favorite game, connect points. For you, data is not just data. You are the whole thing, well done. This is for those who recognize all the insights. This is for the craft of finance.

Analysis

The discussion highlights the ongoing struggle for fair wages in the restaurant industry, emphasizing that states which have adopted full minimum wage policies are seeing growth in their restaurant sectors. Notably, Denny's CFO pointed out that paying a full minimum wage in California has led to better performance, contradicting the narrative that higher wages harm profitability.

Smart money should recognize that the push for a living wage is gaining momentum, particularly as employers acknowledge the need to attract workers post-pandemic. The historical context of wage structures reveals systemic issues that could lead to significant regulatory changes, impacting labor costs and restaurant profitability across the U.S.

13:48
PDT

Federal action on living wage has stalled since 2009.

Saru Jayaraman Restaurant Opportunity Center of New York Windows on the World Congress Clinton administration California Chicago DC Alaska Montana Nevada Minnesota FEDFUNDS

– Seven states have eliminated the sub-minimum wage structure.

– The historical context of wage laws reveals systemic exploitation.

– Localities are increasingly taking action in the absence of federal changes.

– Rising wages are becoming essential for attracting workers post-pandemic.

labor market dynamicsminimum wage legislation

▸ Full transcript

We have a federal living wage fraud act that is moving through Congress, but Congress has not acted since 2009 to raise those wages and not since 1996 to raise wages for restaurant workers. So in the absence of federal action, you need localities and states to stand up. I'm glad you brought up 1996. That was actually on the Hill back then, and that was a big bill during the Clinton administration. That's right. And that effectively allowed, a lot of people don't realize this, that effectively allowed employers for restaurants to pay below the minimum wage with the idea that the tips they would get on top of that would effectively get them not only up to that minimum wage but beyond it. And the idea was that that was justification for the restaurant. There are a lot of people that are saying that structure, well, A, that it was a bad compromise, but that one way or another that structure has kind of run its course. We're saying that. Yeah. That structure was created after emancipation to allow restaurants to hire newly freed black women in particular for free after chattel slavery ended. That is the origin of that sub-minimum wage. Seven states have gotten rid of it. Chicago has gotten rid of it. DC is getting rid of it. It's time for New York to follow California and so many other states that have gotten rid of this legacy of slavery because it creates economic instability and sexual harassment for a workforce that's mostly women. But I mean seven states, I mean that's a drop in the bucket and those seven states were already kind of on board with this. Oh no. No they weren't. You're talking about Alaska, Montana, Nevada. It's not just blue states. Okay. Minnesota, I mean these states have booming rush.

Analysis

The ongoing federal living wage fraud act highlights the stagnation in wage increases for restaurant workers since 1996, emphasizing the need for local and state action. The historical context of the sub-minimum wage structure reveals its roots in economic exploitation, suggesting a growing movement against this outdated system as more states take action to eliminate it.

Smart money should note the potential for legislative changes at the state level to impact labor costs in the restaurant industry significantly. The shift away from sub-minimum wages could lead to increased operational costs for restaurants, influencing investment strategies in the sector.

13:46
PDT

1.5 million workers have seen wage increases since the pandemic.

Saru Jayaraman Restaurant Opportunity Center of New York Windows on the World MIT New York City Living Wage Calculator

– The movement for a living wage extends beyond the restaurant industry.

– Employers are recognizing the need to pay closer to the cost of living.

– The MIT Living Wage Calculator indicates rising wage requirements.

– The focus on worker compensation is becoming a national priority.

living wage movementlabor market dynamics

▸ Full transcript

You know, amazing service, amazing food; some of the best workers in New York City work there. Well, give me a sense here, I mean, was this supposed to be just a temporary project? Because 25 years later, even though the names may have changed a little bit, we're still talking about it. That's right. Well, you know what happened after 9/11? We ended up supporting so many families of victims, the 73 workers who died, who frankly had nothing the very next day. I mean, their loved one worked in the most expensive restaurant, in the most expensive building, in the most expensive city in the world. And they had nothing the next day. And so it was very clear after 9/11 to the workers and to me that things had to change. Never again. We say never again with 9/11. Well, it was never again also with these restaurant workers just not having enough that their families couldn't pay the rent the very next day after they died. And that's how we ended up focusing on a living wage for all workers, not just in the restaurant industry, but nationwide. So this became a national movement that went even well beyond your organization. How much progress have we made, though, on that front? Wow, we have raised wages for 1.5 million workers, especially over the last couple of years since the pandemic, because so many employers since the pandemic have recognized that they actually can't attract workers unless they're paying closer to the cost of living. And right now, the MIT Living Wage Calculator says that at least a single person, even with one dependent, needs.

Analysis

The aftermath of 9/11 highlighted the vulnerability of restaurant workers, leading to a national movement for a living wage. Progress has been made, with 1.5 million workers seeing wage increases, particularly as employers adapt to post-pandemic labor market demands.

Smart money should note that the push for higher wages is not just a moral imperative but a necessity for attracting talent in a competitive job market. This trend could reshape labor costs across various sectors, influencing profitability and investment strategies.

13:44
PDT

Windows on the World employed a diverse workforce, many of whom were immigrants.

Saru Jayaraman Restaurant Opportunity Center of New York Windows on the World New York Long Island Restaurant Opportunity Center One Fair Wage Joe Baum United Nations

– Saru Jayaraman's efforts led to the establishment of a national movement for fair wages in the restaurant industry.

– The connection between 9-11 and the plight of service workers illustrates systemic vulnerabilities.

– Advocacy for full minimum wage could reshape compensation structures in the service sector.

– The narrative emphasizes the importance of supporting marginalized workers in times of crisis.

labor rightsimmigrant worker supportminimum wage advocacy

▸ Full transcript

Interesting thread that connects to 9-11. More than 70 members of one of New York's most diverse restaurants were killed that day, and hundreds of their surviving colleagues were left without jobs. We're talking about Windows on the World. In response, a young attorney named Saru Jayaraman, who had been organizing immigrant workers on Long Island, co-founded the Restaurant Opportunity Center of New York to support those displaced, a worker center that grew into a national movement. Jayaraman is now president of One Fair Wage, campaigning to guarantee restaurant and service workers a full minimum wage from their employers with tips on top. Sarah, great to have you here. Wonderful. So take us back to the day. I mean, you were a young lawyer primarily working with immigrants. This was Windows on the World; if you don't know, it was a big sort of entertainment dining complex at the top of one of the towers, and a lot of the workers there were immigrants, and we should point out many of them were undocumented. Yes. Give me a sense as to what made you see a connection to their loss and why you felt the need to actually get involved. Well, I was actually asked to come meet the workers who survived and the families of the victims by the union that was inside that restaurant, and meeting them changed my life. They were workers literally from all over the world. The original founder of Windows on the World, Joe Baum, wanted a restaurant where there was somebody from every island nation on earth. The workers today at the memorial said we were like the United Nations. We could sell any customer, any tourist from anywhere a $10,000 bottle of wine because we spoke their language.

Analysis

The tragic loss of over 70 workers from Windows on the World during 9-11 catalyzed the formation of the Restaurant Opportunity Center of New York, highlighting the vulnerability of immigrant workers in the service industry. Saru Jayaraman's advocacy for a full minimum wage for restaurant workers underscores a critical shift towards ensuring fair compensation in a sector heavily reliant on tips.

13:39
PDT

American Express Tower completion expected by 2031.

American Express Lower Manhattan FDNY Foundation SL Green Perlman Center Oculus Brookfield Place CFO SL FDNY American Express Tower

– Lower Manhattan has transformed into a vibrant area post-9/11.

– Significant increase in foot traffic and business activity.

– Companies are committed to investing in downtown.

– Balance between remembrance and progress is crucial.

urban redevelopmentreal estate investment

▸ Full transcript

I should point out it was years before I could even walk anywhere around Lower Manhattan. Even when the 9/11 Memorial opened in 2011, it was years before I ever walked past it. I don't even mean just look at it, but walk past it. It was hard. I spent a lot of time down there. Now I've seen the Memorial, I go to the Perlman Center, Oculus, Brookfield Place, etc. We're going to hopefully, knock on wood, get the last big tower up, the American Express Tower, by 2031. What is that going to symbolize when we finally have that ribbon cutting and we see people going back to work and back to maybe homes in that building? I think it's exactly where we started: resiliency. Right 25 years ago, you see the pictures that you're seeing for the last couple of days reminding us what happened. You wouldn't have imagined seeing what you see there today. The last tower being built is quite an accomplishment. It's quite a testament to the desire for a company like AmEx to want to be downtown. It's a vibrant area now. It's an area where you weren't walking in 2011, and there are tens of thousands of people walking every day down there and kind of in awe of what's been rebuilt. Yeah, and the way that everyone involved was able to achieve that balance between remembrance but also kind of pushing us forward. I really appreciate being with us, Matt, the CFO of SL Green and the chairman of the FDNY Foundation.

Analysis

The completion of the American Express Tower in Lower Manhattan by 2031 symbolizes resilience and a significant transformation of the area since 9/11. This development reflects a strong commitment from companies to invest in downtown, indicating a vibrant future for the neighborhood.

Smart money should note that the revitalization of Lower Manhattan is not just about rebuilding but also about creating a balanced environment that honors the past while fostering economic growth. The influx of people and businesses into the area suggests a robust recovery and potential for increased property values.

13:37
PDT

New York City high-rises are now the safest globally.

New York City FDNY Foundation FDNY New York DXY

– Advanced safety features include wider stairwells and improved ventilation.

– The FDNY Foundation raises funds for firefighter equipment and training.

– Government funding for fire departments is limited.

– Urban redevelopment can serve as a template for global safety standards.

urban resiliencepublic safety technology

▸ Full transcript

100-plus story building in a time of crisis. I know the technology has changed, and I know that we've learned a lot from our tragedies. So now for those folks who are living or working in these types of tall buildings, are they safe? They are, and there is no safer building when it comes to high-rise buildings than New York City. Interestingly enough, New York City hosts, because it does have the most high-rises and the most advanced fire department in the world, a high-rise symposium for firefighters all over the world who will go through different types of high-rise buildings to look at the different safety features and technology that's involved, whether that's wider stairwells—because we saw the need for stairwells 25 years ago—those types of things, ventilation. The world looks at how New York is redeveloping its high-rises and is showcased in that way. I mean, your foundation, I mean, you raise a lot of money to provide equipment, technology, and training for firefighters. I do have to ask though, why do we need a charity to do that? Should that money not be coming from our tax dollars from the government? It's a really good question. When people hear of the FDNY Foundation, they say exactly that. Well, doesn't the government just provide everything that the fire department needs? It's the fire department. And the answer is, unfortunately, no. There is a limit to how much the city provides to the department, and the vast majority of that goes to the fire trucks and ambulances that you see on the street and the personnel. But there are...

Analysis

New York City's high-rise buildings are now considered the safest in the world, thanks to advanced safety features and technology developed over the past 25 years. The FDNY Foundation plays a crucial role in funding equipment and training for firefighters, highlighting a gap in government funding for essential fire department needs.

Smart money should note that the redevelopment of high-rises in New York City serves as a global benchmark for safety and resilience in urban environments. The reliance on charitable funding for firefighter resources indicates potential investment opportunities in public safety technology and infrastructure.

13:35
PDT

One Vanderbilt is the first major project under new Eastside zoning.

One Vanderbilt JP Morgan FDNY Foundation New York City JP FDNY COVID United States East Coast

– The building is now the highest value office building in the U.S.

– Proximity to mass transit has proven to be a valuable asset.

– COVID-19 did not diminish the perceived value of such developments.

– Ongoing projects indicate continued confidence in NYC real estate.

urban developmentreal estate investmentmass transit value

▸ Full transcript

So let's go there. There's been a ton of development still, a ton of development. Anybody walking around there sees the new JP Morgan building just being built and, of course, One Vanderbilt. I know your foundation, the FDNY Foundation, has had this. Was it climbed to the summit? Yes, basically you climb up the steps to One Vanderbilt, which is a relatively new building, 90 plus stories. Talk to me a little bit about that. So, you know, when we came out with One Vanderbilt, the concept of One Vanderbilt and Eastside rezoning, which was the ability to build larger buildings in an area that had restricted them previously, was in its early stages. One Vanderbilt was actually the first project built under that new zoning. We built a 1.7 million square foot tower at the corner of 42nd and Madison, which wasn't an area that people would have expected what is now the highest value office building in the United States to be. I think that really was a catalyst to the Eastside rezoning moving forward, along with a lot of other projects. You mentioned JP Morgan's building. There are some other large projects going on. One Vanderbilt was the inaugural large-scale project. But it's funny, kind of starting to get there. People didn't think that something like that could command that type of value. I mean, it's literally on top of one of the busiest transit hubs in probably the East Coast. It proved out that thesis. I don't think there was some doubt as to how valuable being on top of mass transportation really was. Interestingly, the COVID scenario was one, obviously we didn't have it in our head, but it was a...

Analysis

The development of One Vanderbilt has set a precedent for high-value office buildings in New York City, demonstrating the potential for significant returns in areas previously thought to be limited by zoning restrictions. This project, alongside others like the JP Morgan building, highlights the resilience and adaptability of the real estate market in response to changing urban landscapes and economic conditions.

Smart investors should note that the success of One Vanderbilt, built atop a major transit hub, validates the thesis that proximity to mass transportation can drive property value, even amidst uncertainties like the COVID-19 pandemic. This trend may indicate a broader shift in urban development strategies, favoring locations that enhance accessibility and connectivity.

13:33
PDT

New York City remains a desirable location for living and working.

New York City Perlman Arts Center Edie Lutnick Caroline Coaster Canterford Sturrell Relief Fund

– The transformation of Lower Manhattan includes a mix of residential, office, and cultural spaces.

– The rebuilding process took time but resulted in a strikingly beautiful memorial and community.

– The area's redevelopment serves as a model for urban revitalization beyond 9-11 impacted neighborhoods.

– Investment in diverse community spaces is crucial for long-term urban resilience.

urban resiliencereal estate developmentcultural investment

▸ Full transcript

Talk to me about, from the perspective of a real estate company, why there was even a commitment to try to do anything down there when there was still so much uncertainty. As we heard from Ed just a little bit earlier, this idea of so much fighting over how to get that neighborhood back up and running. Sure, well over decades, one thing that New York City has proven to be is highly resilient. People want to be here; people want to work here. So I don't think there's any question in anybody's mind that that area would be rebuilt. It was more a question of how we would be rebuilt, how long it would take to rebuild it, who would rebuild it, and what it would look like when it was done. Looking back 25 years, which seems like only yesterday, it's remarkable what it has transformed into. It is a vibrant residential area while having an office component and a memorial that is strikingly beautiful and poignant. We've had several projects down there, more on the residential side because that is what that area really transformed into. But the city needs to be vibrant in all areas, not just Midtown, not just Downtown. So when it takes a hit somewhere like it did 25 years ago, there was no question it would be rebuilt. But there's also this idea that you would talk about just the mix in that neighborhood. And we also, let's not forget the arts down there with the Perlman Arts Center and a few other things that have also popped up. That sort of became a template for a lot of other neighborhoods that weren't even directly impacted by 9-11, but this idea that maybe we.

Analysis

New York City's resilience is highlighted as a key factor in the rebuilding of Lower Manhattan, transforming it into a vibrant residential and commercial area. The commitment to revitalization amidst uncertainty showcases the city's ability to adapt and thrive, setting a precedent for other neighborhoods.

13:31
PDT

Lower Manhattan has undergone a significant transformation over 25 years.

Andy Burnham Bloomberg Lower Manhattan Prime Minister Die Geopolitik Wenn News Breaks Downing Street PRIVATE

– The new Prime Minister emphasizes a vision of resilience and innovation.

– Urban reimagining can lead to increased property values.

– Investment opportunities may arise in real estate and infrastructure.

– Revitalized urban areas attract businesses and residents.

urban developmentreal estate investment

▸ Full transcript

Invest like the future is watching. Die Geopolitik. Wenn News Breaks, in comes the car into Downing Street. Bloomberg has you covered. Andy Burnham arriving for all the context and clarity you need. A broad vision here from the new Prime Minister. Here at first on Bloomberg, Lower Manhattan has not simply been rebuilt over the past 25 years; it's been reimagined. Its population is more than...

Analysis

The new Prime Minister's vision for Lower Manhattan emphasizes not just rebuilding but reimagining the area, reflecting a significant transformation over the past 25 years. This shift indicates a broader trend in urban development where resilience and innovation are prioritized in post-crisis recovery efforts.

Smart money should note that the reimagining of urban spaces can lead to increased property values and investment opportunities in real estate and infrastructure. Additionally, this trend may attract businesses and residents seeking modern amenities and a revitalized community environment.

13:29
PDT

The anthology captures diverse personal stories from 9/11, emphasizing generational grief.

Edie Lutnick Howard Lutnick Caroline Coaster Canterford Sturrell Relief Fund CFO An Anthology El Green

– Emotional narratives can influence public sentiment and charitable contributions.

– The discussion indicates a shift in community engagement strategies by organizations.

– Personal stories may enhance brand perception and social responsibility efforts.

– The rebuilding efforts in lower Manhattan continue to resonate with the public.

emotional narrativescommunity engagementcharitable giving

▸ Full transcript

One of these stories that you feel and impacts you, and you go, "Oh, I can see myself on that page." I also look at a clock, and it's 9-11 every time I look at the clock. I'm 23 now, and I thought my aunt was so old at 23. And now I realize 23 is just the beginning of life. So there's something in here for everybody. And that was part of my conversation with Edie Lutnick, the co-founder and president of the Canterford Sturrell Relief Fund, and Caroline Coaster, co-authoring a book called Families: An Anthology of Stories and Lessons from that tragedy 25 years ago. When we come back, we're going to talk about the rebuilding with the CFO. So that's El Green. This is Gumball.

Analysis

The conversation highlights the emotional impact of personal stories related to the 9/11 tragedy, emphasizing the generational grief experienced by families. The co-authors of a new anthology reflect on how these individual narratives provide deeper insights beyond the statistics associated with the event.

Smart money should recognize the potential for emotional narratives to influence public sentiment and charitable giving, particularly as anniversaries of significant events approach. The focus on personal stories may also indicate a shift in how organizations engage with communities, potentially affecting their brand perception and social responsibility strategies.

13:27
PDT

The anthology covers three generations affected by 9/11.

American Express Caroline Coaster Howard Lutnick Cannerford Sterile Relief Fund Cannerford Sterile

– Individual stories reveal varied perceptions of loss and grief.

– Generational grief impacts how families cope with tragedy.

– The emotional narratives can influence community resilience.

– Understanding personal stories may inform investment strategies.

community resiliencegenerational grief

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So that they know the story. It gets to this idea too, I mean, just the number 658 is so associated with Cannerford Sterile and what happened. And then you go through this book, and these are, this is not a sort of one story. It is very individualistic stories. And so as you kind of pick an example from there to read to us, maybe you can also kind of explain why these stories were so disparate. So this book covers three generations. So it covers parents who are in their 80s and 90s, husbands and wives who lost their spouses, children, some of whom were not born yet or were infants or babies, and some, like I said, were not even born. So their mothers were pregnant. And you have fiancés who, their loved one was taken from them. You have cousins and who lost nieces, who lost their aunts and their uncles, siblings, who lost their brothers and sisters. And so their perception of what happened and how they get through it is completely different. You know, the child who wasn't born yet, but this is in his house, is dealing with generational grief. The father who lost two sons, right, goes to faith to try to get through it. The husband or the wife.

Analysis

The discussion highlights the diverse personal stories behind the number 658, representing lives lost on 9/11, emphasizing the generational impact of grief. This anthology reveals how individual experiences shape perceptions of loss, suggesting that emotional narratives can influence community resilience and recovery efforts.

Smart money should note that the emotional and psychological dimensions of tragedy can affect local economies and social structures, potentially impacting investment in affected areas. Understanding these narratives may provide insights into community recovery trends and the long-term viability of investments in regions with similar histories.

13:26
PDT

The anthology emphasizes individual stories behind 9/11 statistics.

Edie Lutnick Howard Lutnick Caroline Coaster Cannerford Sterile Relief Fund Cannerford Sterile The Families Love Loss Charity Day

– Personal narratives may enhance engagement in charitable efforts.

– Corporate social responsibility strategies may evolve to include storytelling.

– Emotional connections can drive donations and support.

– The focus on resilience reflects broader societal themes.

philanthropycorporate social responsibilityemotional engagement

▸ Full transcript

We protect the digital order. Edie Lutnick, who of course is the sister of Howard Lutnick, quit her job about 24 years ago and helped to co-found the Cannerford Sterile Relief Fund. Now today, alongside Caroline Coaster, who is managing director and chief counsel at Cannerford Sterile, they are out with a new book called 'The Families 9-11 Anthology of Love Loss and Lessons of Resilience.' It's a collection of essays that actually looks a little bit deeper than that one big number that is typically associated with cancer, 658, and looks more closely at the individual lives that were taken and the individual lives that carry that legacy on. Take a listen. Well, it's interesting we're here on Charity Day because for me, over the years, I've been asking the celebrities and athletes and people who visit us on September 11th where they were on September 11th. In the early years, they say, 'Oh, like there's a story that recognized for me, you know, I was dropping my kids at school or I was, you know, on my way to work.' But in recent years, it was, 'I was in high school chemistry class.'

Analysis

The release of the 'Families 9-11 Anthology of Love Loss and Lessons of Resilience' highlights the personal stories behind the statistics of 9/11, emphasizing the individual lives affected by the tragedy. This shift in focus from numbers to narratives may resonate with investors looking for deeper emotional connections in their philanthropic efforts.

Smart money should note the growing trend of personal storytelling in charitable initiatives, as it can enhance engagement and potentially drive donations. This approach could influence how companies align their corporate social responsibility strategies, particularly in the wake of significant historical events.

13:24
PDT

American Express Tower will complete the World Trade Center site redevelopment.

American Express Edward Schuyler Michael R. Bloomberg City Solomon Smith Barney New York City World Trade Center Lower Manhattan Die Kleinigkeiten

– Lower Manhattan's residential population has nearly doubled since before 9/11.

– The area has transitioned to a mixed-use neighborhood with a focus on small businesses and cultural amenities.

– The redevelopment process has taken nearly 30 years, highlighting the complexities involved.

– Major firms are committing to Lower Manhattan, signaling confidence in its future.

urban redevelopmenteconomic revitalization

▸ Full transcript

Die Kleinigkeiten, da schaust du genauer hin. Denn wo andere nur Details sehen, erkennst du die Möglichkeiten. Das ist für alle, die aus kleinen Insights einen großen Unterschied machen. Das ist for the Craft of Finance und income ETFs.

Analysis

The discussion highlights the significant recovery and transformation of Lower Manhattan since the 9/11 attacks, with a focus on the completion of the American Express Tower, which will cap the redevelopment of the World Trade Center site. This redevelopment has turned the area into a vibrant, mixed-use neighborhood, showcasing resilience and the potential for economic revitalization.

Smart money should note the long-term commitment of major firms like American Express to remain in Lower Manhattan, indicating confidence in the area's future. The completion of the American Express Tower in 2031, 30 years post-9/11, underscores the complexities of urban redevelopment and the potential for sustained economic growth in the region.

13:22
PDT

American Express Tower completion set for 2031.

American Express Edward Schuyler Michael R. Bloomberg City World Trade Center American Express Tower Memorial Museum Mike Moore

– Lower Manhattan's redevelopment reflects long-term recovery efforts.

– Mixed-use development may attract further investment.

– American Express's commitment indicates confidence in the area.

– 30 years post-9/11, the site is nearing full realization.

urban redevelopmentlong-term investmentmixed-use development

▸ Full transcript

Well, I do want to talk about the test of time. I was just sort of groundbreaking for the American Express Tower that will effectively kind of complete early. Of course, it would build be the second tallest tower there, thousands and thousands of jobs. And presumably, as you said, that mixed-use development. City, of course, just rebuilt gleaming new headquarters kind of just a little bit north of that. I am just curious about what that means that American Express stays put and that city at least stays in lower Manhattan rather than going to Midtown or somewhere else? I think one of the things that the lessons is how long it takes to do all this. So obviously the site was complicated. You also, there's the Memorial Museum that also needed to be built and Mike Moore was insistent that the memorial opened on a 10-year anniversary, which it did. But the fact that the American Express Tower full disclosure, you know, my wife works at American Express, that tower will complete the site and it will open its doors in 2031 that is 30 years after 9/11, you know the site was essentially destroyed in about two hours. And it's taken 30 years. It will have been taken 30 years in order to complete it and it's just you know shows you know how complicated and out challenging these things are but it also shows that you know that these things can be done maybe not as fast as you want they can be done. They can be done well, and they can be done in an inspiring way. All right. Well, if anyone who's been down in lower Manhattan.

Analysis

The American Express Tower is set to complete the World Trade Center site by 2031, marking a significant milestone in the long-term recovery and redevelopment of lower Manhattan. This development underscores the complexity and duration of urban rebuilding efforts following major tragedies, with the site taking nearly 30 years to fully realize its potential after the destruction on 9/11.

Smart money should note that the commitment of major firms like American Express to remain in lower Manhattan signals confidence in the area's revitalization and economic recovery. The mixed-use development approach may attract further investment and enhance the neighborhood's appeal, potentially driving up property values and local economic activity.

13:20
PDT

Lower Manhattan is evolving into a 24-7 residential neighborhood.

Lower Manhattan World Trade Center New York City Michael R. Bloomberg City PATH New York

– The World Trade Center site is now integrated into the community.

– Old office buildings are being converted to residential spaces.

– Emotional and economic factors can hinder urban redevelopment.

– Small businesses and cultural amenities are being prioritized.

urban redevelopmentresidential real estatepost-crisis recovery

▸ Full transcript

And so the approach was to make it a 24-7 neighborhood, to make it a place for people to live and do that by being welcoming to small businesses, building new parks, and creating cultural amenities. Ultimately, over time, it became essentially a residential neighborhood, so much so that a lot of old office buildings are actually being converted to residential. The other part of it was the opportunity to reintegrate the World Trade Center site into Lower Manhattan, because previously it had been a superblock and sort of an island unto itself and frankly an intimidating place to be. Now you can walk through the World Trade Center, you can go to the memorial, you can go to the PATH station, and if you're working there, you can go to work or shop. It's part of the neighborhood as opposed to a separate island within Lower Manhattan. But there was a lot of fighting over that. I remember particularly on this idea of making it more of a round-the-clock residential kind of hybrid, which is a little bit different than what it was. Why was there so much resistance to that? I know some of the banks already said they were going to relocate elsewhere for safety or whatever reasons. I think it's really hard coming out of a tragedy like that when 2,700 people were murdered. The emotions were high and anxiety was high, and there were a lot of people that were betting against New York. As we talked about, the economic damage had been done as well, and it was a tense time. My mayor was sworn in on January 1, 2002. There was still smoke.

Analysis

The transformation of Lower Manhattan into a vibrant 24-7 neighborhood has been marked by the integration of the World Trade Center site, which has shifted from an intimidating superblock to a welcoming part of the community. This change reflects a significant shift in urban planning and economic recovery post-9/11, with a focus on residential development and small business support.

Smart money should note the ongoing conversion of old office buildings to residential spaces, indicating a long-term trend towards urban living in previously commercial areas. The resistance faced during this transition highlights the emotional and economic challenges that can impact real estate decisions in post-crisis environments.

13:18
PDT

Lower Manhattan's residential population has nearly doubled since 9/11.

Edward Schuyler Michael R. Bloomberg New York City World Trade Center Solomon Smith Barney PATH

– The area has seen a significant increase in office space availability.

– Economic recovery has led to a reinvention of lower Manhattan.

– The fiscal deficit in the city increased from $1 billion to over $5 billion post-9/11.

– Job losses in the city reached 150,000 a year after the attacks.

urban recoveryreal estate demand

▸ Full transcript

Well, I think the first thing is you have to recognize we all think a lot about a special day like today, the human loss, the enormity of the human loss. The physical loss, the commercial loss, the economic loss was also quite devastating as well. You think about those towers held 13 million square feet of class A commercial space. That's as much as Miami and Atlanta have total in office space. Infrastructure like the PATH train was destroyed, subway stations as well. The city was left with a huge fiscal deficit with revenue coming in and being more expensive with all the added expenses of recovery and other things. The budget deficit went from about one billion to over five billion in the city, with 150,000 fewer jobs a year later. The recovery had a focus on the site; the recovery had a focus on lower Manhattan, which was an opportunity to reinvent it, and also city-wide the economy needed to jumpstart as well. Well, we'll talk about that because I mean, I was here at the time and I remember there were a lot of people that did not think lower Manhattan would ever come back. And it's come back in a big way. I was trying to look up some of the numbers. I see the residential population is almost double today what it was just prior to the attacks, obviously the amount of office space there. And I kind of listed off some of those marquee architectural buildings.

Analysis

The economic recovery in lower Manhattan post-9/11 has been significant, with the residential population nearly doubling and a substantial increase in office space. This transformation highlights the resilience of urban economies and the potential for revitalization in the face of adversity.

Smart investors should note the shift in lower Manhattan's commercial landscape, as the area has not only recovered but has also become a hub for new developments. The increase in residential and commercial space indicates a growing demand that could signal further investment opportunities in urban real estate.

13:15
PDT

New Scale Power downgraded to sell by UBS.

New Scale Power UBS Fed S&P Russell Dow Nasdaq Valero Skyworks American Express Edward Schuyler Michael R. Bloomberg PRIVATE

– 10-year yield at highest since October 2023.

– Energy stocks up due to rising crude oil prices.

– Traders expect a Fed rate hike next week.

– S&P and major indices down 1-2% for the week.

energy sector dynamicsFed policymarket volatility

▸ Full transcript

Skyline the towers above it. You think about the Oculus, Santiago Calatrava's wing transportation hub or the Jenga Tower at 56 Leonard Street, the Frank Gehry design stainless steel tower at 8 Spruce Street and of course the seven buildings at the World Trade Center site to replace the seven lost in 2001. The first new building to be completed was Seven World Trade in 2006. Next came the 9-11 Memorial Pool in 2011 at what was the site of Six World Trade. Then in 2013, Building 4 opened and in 2014, One World Trade Center, then the tallest building in the Western Hemisphere. Three World Trade came in 2018 and just two months ago, American Express hosted a groundbreaking ceremony for its new global headquarters at the future Two World Trade Center site. A project that when completed would be the de facto capstone of completing the rebuild of the 16-acre World Trade Center site. So how did we get here? Partly because of our next guest, Edward Schuyler. He spent more than a decade in the New York City Mayor's Office as the recovery and rebuild unfolded. And today he is the head of Enterprise Services and Public Affairs at City, whose Solomon Smith Barney Investment Banking Arm at the time was the largest tenant in Seven World Trade Center. Edward, I really appreciate you taking time for us. Thank you for having me. And we should just get the disclaimer out of the way. A big chunk of your career was alongside Michael R. Bloomberg, of course, owns the company that the network that we're watching right now. Not only that on 9-11, he and I walked down Lexington Avenue.

Analysis

New Scale Power's stock fell over 15% after UBS downgraded its recommendation to sell from neutral, citing increased competition and lowering the price target from $10 to $6. The market is reacting to rising yields and potential Fed rate hikes, with the 10-year yield reaching its highest levels since October 2023, indicating growing inflation concerns.

Investors should note the significant rise in energy stocks, driven by a 9-10% increase in crude oil prices, which may signal a shift in market dynamics. The anticipation of a Fed rate hike next week suggests that traders are positioning themselves for a more aggressive monetary policy response to inflation, which could impact various sectors differently.

13:13
PDT

S&P and major indices ended the day in the green but down 1-2% for the week.

S&P Russell Dow Nasdaq Valero Skyworks Fed crude oil Haslinda Armin Romain Bostic S&P FEDFUNDS PRIVATE CL=F

– Energy stocks rose for the second consecutive week due to rising crude oil prices.

– Traders are betting on a rate hike from the Fed next week.

– Valero and Skyworks were notable movers, with Skyworks up over 20% for the week.

– Short-end yields are pushing higher, indicating market expectations for tighter monetary policy.

energy pricesFed policymarket volatility

▸ Full transcript

The futures are watching, bringing you up-to-the-minute news whenever and wherever it happens. I'm Haslinda Armin in Mumbai. This is Bloomberg. The countdown is on. Everything you need to get the edge at the end of the market day. This is the close. Welcome back to the close. I'm Romain Bostic, wrapping up a holiday-shortened week for U.S. financial markets. The S&P and all of the major indices are going to end the day in the green, but that's not enough to erase the three straight days of losses that occurred prior to that. The S&P, the Russell, the Dow, and the Nasdaq each down about 1 to 2 percent over the course of the week. A big part of that is what transpired in the energy and rate space. Energy stocks are up for a second straight week, back on the back of a 9 to 10 percent rise in crude oil prices. Yields continue that push higher, particularly on the short end of the curve, with traders now betting that we are indeed going to get a rate hike next week as the Fed may decide to be a little bit more proactive in trying to fight inflation. You see some of the individual movers there, Valero, not just one of the biggest movers on the day, but that's actually one of the biggest movers in the S&P on the week. Skyworks is up 5 percent on the day, but more than 20 percent on the week, largely tied to the announcement a couple of days ago.

Analysis

U.S. financial markets ended the day in the green, but this was not enough to offset three consecutive days of losses, with major indices down 1-2% for the week. Energy stocks rose for the second week in a row, driven by a 9-10% increase in crude oil prices, while traders anticipate a potential rate hike from the Fed next week to combat inflation.

The rise in energy stocks and crude prices indicates a potential shift in market sentiment towards inflationary pressures, which could lead to increased volatility in the coming weeks. Additionally, the focus on short-end yields suggests that investors are positioning themselves for tighter monetary policy, which may impact growth stocks more significantly than value stocks in the near term.

13:10
PDT

S&P 500 down for four consecutive days but up 0.9% for the week.

S&P 500 Brent WTI Hewlett Packard Enterprise Oracle ACV Auctions RBC Capital Markets UBS New Scale Power TV Bloomberg Business Week Edward Skyler PRIVATE DXY

– WTI crude oil prices increased by 10% this week; Brent up 9%.

– Oracle shares fell 1.8% despite exceeding cloud revenue expectations.

– Hewlett Packard Enterprise reached a record close, up 12.4%.

– ACV Auctions stock surged 44% following acquisition news.

oil price volatilityFed policytech sector performance

▸ Full transcript

Yeah. Like that's a lot of very wealthy people in a very concentrated place too. No, this is why we created, you know, financial advisors and, you know, we should point out charities if you know, that's right. If anyone thinks about what you can do with all that money and help you work. I'm not to tell them how to spend their money, but I think if you are suffering from sudden wealth syndrome and no longer want to be suddenly wealthy, I have some ideas of where you can send your money. Yeah, or you can just buy a 12 house and you know, a million dollar sports car. Well, well just contact us. We want to help you get through it. We absolutely do. Goodbye. Have a good week. I don't know if we'll see you next week much, Roman. We'll be out in California to get your proof. Oh, you are. That sounded ominous. I think it's something about my role here at this company. I can't comment on that. Believe me, every day. Every day I go to the gym. I know what's going to be. Have a great weekend, a safe weekend. All right, that's it. Our cross-platform radio, TV, YouTube, Bloomberg, and Rageals, we do call it the closing bell. We're main, of course, back there on the close on TV. Tim and I back here on Bloomberg Business Week daily on radio. Folks, have a safe weekend. And our coverage does continue here on the close all day long. We have been reflecting on 9-11. But more importantly, we've been talking about the economic rebuild that has transpired over the past 25 years. And we're gonna catch up with the key figure in that. Edward Skyler, the man who spent more than a decade.

Analysis

The S&P 500 is experiencing its fourth consecutive day of losses, yet is still up approximately 0.9% as the trading week concludes. Oil prices have surged, with WTI rising 10% and Brent up 9% over the past week, contributing to market volatility and expectations of a Fed rate hike next week.

Smart money should note the significant rise in crude oil prices and the implications for inflation, which may prompt the Fed to act more aggressively than anticipated. Additionally, the mixed performance of tech stocks, particularly Oracle's reversal despite strong cloud revenue, highlights the market's sensitivity to earnings expectations and macroeconomic signals.

13:07
PDT

New Scale Power's stock dropped over 15% after UBS downgrade.

New Scale Power UBS Fed SMR Will Wade FEDFUNDS

– UBS cut price target for New Scale Power to $6 from $10.

– 10-year yield rose 20 basis points this week, highest since October 2023.

– Two-year yield increased 25 basis points, highest since 2024.

– 30-year yield remains near highest levels since 2007.

energy market competitioninterest rate risk

▸ Full transcript

These small modular reactors, New Scale Power fell by more than 15% today. UBS cut its recommendation on the company to sell from neutral on increased competition, lowering the price target to $6 from $10. We talked to Will Wade about this stuff all the time, these SMR small modular reactors. They're still not out in the wild at this point. Like these things are still quite a ways away, but it doesn't mean there's no shortage of companies that are going after the space with the increased need for energy and the demand that we're seeing from a lot of these cloud computing companies and these hyperscalers, but still we're not seeing these small modular reactors in the wild yet. I do want to check in on yields because we had a pretty consequential week for them largely because of concerns about inflation and concerns that the Fed is set to hike rates. I'm going to start off with your 10-year yield which on the day is only up about a basis point, but this week alone it jumped about 20 basis points to its highest levels since October of 2023. The short end of the curve, your two-year yield, that is up 25 basis points on a weekly basis, including four basis points on the day, now camped out at its highest levels since 2024. And of course, the 30-year yield did actually dip just a bit here on the day, but on a weekly basis, still higher by about 10 basis points from where it was last Friday, holding out not far from its highest levels since 2007. Yeah, certainly feels like now the question is, is it one hike more that we get from the Fed or one hike we get from the Fed this year?

Analysis

New Scale Power's stock fell over 15% after UBS downgraded its recommendation to sell, citing increased competition and lowering the price target from $10 to $6. This decline highlights the ongoing challenges in the small modular reactor market, which has yet to see widespread deployment despite rising energy demands from cloud computing companies.

The significant rise in yields, particularly in the short end of the curve, suggests that traders are increasingly pricing in a potential Fed rate hike. The 10-year yield reached its highest level since October 2023, indicating heightened inflation concerns that could impact borrowing costs and investment strategies moving forward.

13:04
PDT

ACV Auctions stock surged 44% following a $1.9 billion acquisition by CoPart.

RBC Capital Markets ACV Auctions CoPart Oracle RBC AI ACV CEO Capital Markets Wall Street

– Oracle's cloud revenue exceeded expectations, but gross margins narrowed.

– RBC's bullish outlook on ACV Auctions highlights strong AI market demand.

– Oracle's volatility suggests market uncertainty despite positive revenue news.

– The tech sector remains sensitive to both earnings surprises and margin pressures.

AI infrastructure demandcloud computing performancemergers and acquisitions

▸ Full transcript

We saw that stack up about 12% or so. RBC Capital Markets started coverage on the company with an outperform rating at a $640 price share target, citing strong AI infrastructure demand. That one's up like more than 340% year to date. Forgive me. Finishing just shy of 12%. So yeah, I don't know. It feels like different stories for each one. Wait, I got to go back to one that we don't talk about a lot. Okay, yeah. What's that? So that's why you took it. All right, take our ACV Auctions. Oh yeah, I'm into this. I know, see, I knew. The CEO's a good guy. A gift for you, I care, I care. Stock up about 44%. It's a vehicle auctioneer, CoPart that agreed to buy ACV Auctions, which is a digital car marketplace for $1.9 billion. It was an all-cash transaction. So, kind of interesting, something different in the trade. All right, I'm done. You mentioned Oracle, Carol. I did. It was higher for much of the day today. It was up as much as 7.5% earlier in the session. Then it declined. Little major reversal, I should say, in the trade today. Down 1.8%. It did deliver quarterly cloud computing revenue that exceeded Wall Street's expectations. Margins, gross margins for the company though, narrowed. Sales in the cloud infrastructure business jumped to $7.4 billion. That was above estimates from analysts. And the company added 850 megawatts of data center capacity in the quarter. Still shares Oracle up as much as 7.5% earlier in the session, ended up falling today by one point.

Analysis

RBC Capital Markets initiated coverage on ACV Auctions with an outperform rating and a $640 price target, citing strong demand for AI infrastructure. Meanwhile, Oracle's shares experienced a significant reversal, initially rising 7.5% before closing down 1.8%, despite exceeding quarterly cloud revenue expectations.

13:02
PDT

S&P 500 had 337 gainers and 166 losers today.

S&P 500 Hewlett Packard Enterprise HPE AI energy stocks IMAP The Russell NASDAQ 100 S&P 500 HPE

– Energy sector was the only one with meaningful weekly performance, up 1%.

– Hewlett Packard Enterprise (HPE) closed at a record high, up 12.4%.

– HPE shares have risen over 150% this year, fueled by AI demand.

– Nine out of eleven S&P sectors finished the day in the green.

inflationary pressuresAI technologyenergy sector performance

▸ Full transcript

The NASDAQ composite is up about a full percentage point on the day. So too is the NASDAQ 100, give or take. The Russell 2000 is going to add about 13 points or 5 tenths of 1%. Alright, back to the S&P 500 we go. Taking a look at the index overall, most names are actually higher, remaining in the session with 337 names higher in the Friday trade and 166 to the downside. Looking at the IMAP, the 11 S&P sectors, the good news is nine of those sectors finished the day in the green, including some discretionary and tech names. On a weekly basis, there was really only one sector that had any sort of meaningful performance, and that was S&P energy stocks, which finished up 1%. Alright, guys, let's get to some of the individual gainers if I may. Let's start with Hewlett Packard Enterprise. HPE is the ticker, finishing at a record close, up 12.4% today. Shares have risen more than 150% this year, supported by strong AI. Thanks for clarifying that. 150%. See, there you go. Does she do that to you too, Tim? No, Tim's not paying attention. She's smart. I know when to open this mouth of mine. Alright. I have the beauty; I don't have to sit in the head. I wasn't born yesterday. Let's get you on a far. I'm about to spend four days in California with her. There are several hundred feet separating us from safe. I know where you sit in the newsroom.

Analysis

The S&P 500 saw a mixed trading day with 337 names higher and 166 lower, while energy stocks were the only sector with meaningful weekly performance, up 1%. Hewlett Packard Enterprise (HPE) reached a record close, surging 12.4% today and over 150% this year, driven by strong AI demand.

Smart money should note the resilience of energy stocks amidst broader market volatility, indicating potential inflationary pressures. Additionally, HPE's significant rise highlights the ongoing shift towards AI-driven technologies, suggesting a continued focus on tech investments in the current market environment.

13:00
PDT

S&P 500 up 0.9% today but down for the week.

S&P 500 Brent WTI Federal Reserve Romain Bostic Carol Masser Tim Senevic Global Stomach Cast PRIVATE S&P 500 FEDFUNDS CL=F

– Crude oil prices rose 10% this week; WTI at $100, Brent at $105.

– Traders expect a Fed rate hike next week due to rising yields.

– Inflationary pressures remain a concern, both domestically and globally.

– Geopolitical tensions could prolong inflationary trends.

oil price volatilityFed policy expectations

▸ Full transcript

And right now we are two minutes away from the end of the trading day. Romain Bostic here taking you through to that closing bell with the Global Stomach Cast. We're joined now by Carol Masser and Tim Senevic. Welcome to our audiences across all of our Bloomberg platforms, television, radio, our partnership with YouTube as we count you down to the closing bells. We do indeed getting ready to wrap up the Friday and the holiday short trading week, but here we are, what, four consecutive days of losses for the S&P 500, and we're still up about nine-tenths of a percent as we head into the weekend. I'm thinking about what oil prices are doing heading into the weekend. We did see Brent get over $107 a barrel this week, Romain. It's down to $105 right now, $100 for WTI. This week though, Romain, just in the last five days, WTI is up 10 percent, Brent is up 9 percent. Yeah, I've been keeping an eye on it. And just to clarify too, Carol, I mean, we had three straight days of losses for the S&P 500 on this holiday short week. Friday, all of the major indices are in the green, but we're still headed for a weekly loss for all of those indices right now, and a big part of that is because of what Tim was just talking about, a 9 to 10 percent jump in crude oil prices, not to mention the big spike that we saw in yields, a spike that today is more combined to the short end of the curve, which seems to be a suggestion that most traders think the Fed's gonna hike next week right. You know, I meant for consecutive going back to Friday. I did not know that, but you know, I corrected you anyway. But it's the second of down days and now we're up one. I missed you guys.

Analysis

The S&P 500 and other major U.S. indices are experiencing a slight uptick of about 0.9% as the trading week concludes, despite facing four consecutive days of losses. A significant factor contributing to the weekly declines is the rise in crude oil prices, which have surged approximately 10% over the past week, alongside increasing yields, particularly on the short end of the curve, as traders anticipate a Fed rate hike next week.

Smart money should note that while the indices are up today, the underlying inflationary pressures, particularly from rising oil prices and yields, suggest that the market's recovery may be short-lived. The ongoing geopolitical tensions and supply chain issues could lead to sustained inflation, impacting future Fed policy and market stability.

12:58
PDT

Major U.S. indices are up today but down for the week.

Fed Kevin Warsh Saudi Arabia Iran U.S.China Bloomberg Rock Creek Carlisle World Bank AI Persian Gulf

– Rising yields indicate a likely rate hike by the Fed next week.

– Crude oil prices are down today but up significantly for the week.

– Inflation remains a critical concern, both in the U.S. and globally.

– Regulatory changes in private credit markets could introduce new risks.

inflation riskFed policyprivate credit marketsgeopolitical tensions

▸ Full transcript

On the Persian Gulf, but beyond that, I think there will be a lot more alternatives that we'll be looking at. I do want to sort of just pick your brain for a second. About 25 years ago, you had spent some time, obviously at the World Bank, a lot of time on Wall Street. I think you were at Carlisle at the time of the September 11th attacks, but we talk about a financial market and an economy for that matter. They've required a lot of regulatory action, legislative action, and for that matter, corporate action to not only sort of rebuild, but also to sort of create a ballast that the economy and the financial markets would have if and when a future crisis occurred. Do we have that ballast, Afshani? Some of that ballast did work in terms of reducing risk. Some of it increased risk, right? So for example, a lot of the regulation that reduced the effect of lending by banks created the private credit markets. So on the one hand, that regulation helped with not creating the same crisis as we did before, but now we have another potential big problem with private credit creating problems in our markets. We did not have AI at that point, right? And we're seeing the regulation of AI has been in the news, obviously, the last few days, even more than before. And going into the elections again, it's both Republicans and Democrats are looking to see what's going on.

Analysis

U.S. indices are in the green today but have experienced weekly declines, primarily due to rising yields and commodity price fluctuations. The Fed is expected to raise rates next week, influenced by persistent inflation both domestically and globally, particularly in energy markets.

The ongoing geopolitical tensions, especially in the Middle East, could lead to prolonged inflationary pressures, affecting future rate decisions. Investors should be cautious as the interplay between regulatory changes and private credit markets may introduce new risks not previously accounted for in the current economic landscape.

12:56
PDT

Iran war may prolong supply chain issues.

Iran China U.S.energy markets COVID The Iran Middle East USDCNH CL=F

– Potential rate increases in December are on the table.

– China's energy strategy is shifting towards electrification.

– Market psychology is affected by ongoing geopolitical tensions.

– Long-term changes in energy market dynamics are likely.

geopolitical riskinflationary pressuresenergy market dynamics

▸ Full transcript

And what happened is that over COVID, so much liquidity got into the markets that we saw the inflation jump ahead far beyond what we expected. While that happened, I think we're in a very different situation. We're under the circumstances that we are facing in the markets today is different. We have supply chain problems, which we had also with COVID. So in that way, it's similar. The Iran war could be something that stays a little bit longer and again through probably November if not beyond that. And I think that could impact not just this rate increase next week but potentially rate increases in December. I mean that's a long time. I mean we're already seven months into this war and it gets to the question that even if we do get a resolution, let's say somewhere by the end of the year, there's going to have been so much damage done, not just to the infrastructure, but to the psyches of the folks in the energy markets. Do we go back to whatever that normal was in mid to late February, or are we looking at a future Middle East oil and energy market that's just going to look a lot different? I think a lot happens, you know, the big energy consumers in the world, obviously the U.S., China, and then, you know, we can go down from there. China has been doing a lot on the electrification of its economy so that they're going to continue. They have reintroduced increased coal.

Analysis

The ongoing Iran war is expected to have lasting impacts on the energy markets, potentially influencing rate increases not just next week but also in December. The damage inflicted by the conflict may alter the energy landscape permanently, raising questions about the future of oil and energy markets post-conflict.

Smart money should note that while the U.S. and China are major energy consumers, China's shift towards electrification and increased coal usage could reshape global energy dynamics. The psychological impact on energy market participants may lead to a more cautious approach in trading and investment strategies moving forward.

12:54
PDT

Inflation remains a key concern, likely influencing Fed decisions.

Romain Edmonds Saudi Arabia Rock Creek U.S.Europe Asia Federal Reserve FEDFUNDS CL=F

– Global inflation is more pronounced in Europe and Asia compared to the U.S.

– The 10-year yield is approaching the 5% mark, a critical psychological level.

– Investor behavior has shifted significantly in response to the current interest rate environment.

– Expect potential rate hikes as inflationary pressures persist.

inflation riskinterest rate policy

▸ Full transcript

Is still there. Does that mean that in one way or another the Fed has to do something next Wednesday? Romain, great to be on, and it is a solemn day, but it also reminds us what you said about inflation is not going away. And what is going on? Actually, you talked a little bit earlier with Edmonds on Saudi news today and yesterday. Most likely what we're watching on not just this morning's numbers, but what will probably be likely to happen over the weekend, over the next few weeks or months, is more likely to be inflationary than not. And I think all in all, between the inflation in the U.S., but also by the way globally, that inflation is even more sticky because at least we have our own supplies of oil. A lot of the European countries and Asian countries are seeing much worse inflation. And so both in the U.S. and outside of the U.S., I think inflation is going to lead to rates going up. And this gets to this idea. We talk about a 10-year that's still at 4.97. A lot of people looking at the 5% markets aligned in the sand. I was looking at the last quarterly letter that Rock Creek put out. And you talked about how this pre-pandemic savings glut had basically been eroded and that the current interest rate regime had shifted in a way that I think in your words, more investors have incorporated, have shifted more, excuse me, than investors.

Analysis

Inflationary pressures are expected to persist, both in the U.S. and globally, leading to potential interest rate hikes. The current interest rate regime reflects a significant shift in investor behavior, with many now aligning around the 5% mark for the 10-year yield.

The ongoing inflation concerns, particularly in Europe and Asia, suggest that the Fed's actions next week may be more reactive than proactive. Investors should note the erosion of the pre-pandemic savings glut, which could impact future market dynamics and investment strategies.

12:52
PDT

All major U.S. indices are up today but down for the week.

S&P 500 Fed Kevin Warsh Crude oil South Africa New York Fed Chair Kevin Warsh PRIVATE S&P 500 FEDFUNDS CL=F

– Yields are rising, indicating market expectations for a Fed rate hike.

– Crude oil prices are down today but up over 9% for the week.

– Market positioning is uncertain ahead of the upcoming Fed meeting.

– The commodity space is influencing broader market sentiment.

Fed policyCommodity volatility

▸ Full transcript

South Africa and this is Bloomberg. We are just about 10 minutes away from the closing bells on this Friday afternoon in New York, and the S&P 500, in fact, all of the major U.S. indices are in the green on the day. However, we should point out that all of the major U.S. indices are in the red on a weekly basis. That has been the tale of the tape for a holiday-shortened week, just four days. So the gains you see today are coming after three straight days of losses, losses that aren't going to be erased barring some magnificent turnaround in the next few minutes. A big part of the reason for the weekly declines is related to what we've been seeing in the commodity space and in the yield space. Yields continue to rise, particularly on the short end of the curve today, up about four basis points, as a lot of people now price in near certainty that Fed Chair Kevin Warsh and company will indeed raise rates at their next Fed meeting, which is just next week, next Wednesday. Crude oil prices are down on the day, down about 3.5% to 3%, but on a weekly basis, they are up more than 9%, the biggest weekly spike that we've seen in more than a month. That is the backdrop as we head to the closing bells with a lot of questions as to exactly how the macroeconomic story overlays with some of the positioning in this market.

Analysis

All major U.S. indices are in the green today, but they remain in the red on a weekly basis following three consecutive days of losses. The rise in yields, particularly on the short end of the curve, is contributing to market uncertainty as investors anticipate a rate hike from the Fed next week.

The significant weekly spike in crude oil prices, despite today's decline, indicates underlying volatility in the commodity markets that could impact inflation expectations. Smart money should note the divergence between daily gains and weekly losses, suggesting potential positioning shifts ahead of the Fed meeting.

12:50
PDT

Manufacturing reliance on China reduced from 65% to 50%.

Terrence China Mexico Canada US USDCNH

– Targeting 30% reliance on China by 2027.

– Diversification strategy aims to mitigate tariff risks.

– Proactive manufacturing adjustments could lead to cost efficiencies.

– Flexibility in operations is emphasized.

supply chain riskmanufacturing diversification

▸ Full transcript

And into the US or out of Mexico and up to Canada. Is it that easy? It's not that easy, but we do have flexibility. We had been, prior to Terrence, prior to any of this, on a journey to diversify our footprint out of China. So probably two-ish years ago, roughly 60 to 65 percent of our toy and game volume was coming from China. Today, as we enter into 2025, that was around 50 percent. All we've done is really accelerate the path to get down to roughly call it 30 percent by the time we enter into 2027. For us, I mean, if tariffs stay, if tariffs go, it's never good to have so much of your manufacturing base centered on one geography. We think the diversification.

Analysis

The company is actively diversifying its manufacturing footprint away from China, reducing its reliance from 65% to an anticipated 30% by 2027. This strategic shift is driven by the need to mitigate risks associated with tariffs and over-concentration in a single geography.

Smart money should note that this diversification strategy not only addresses current geopolitical risks but also positions the company to adapt to future market fluctuations. The proactive approach to manufacturing could enhance operational resilience and potentially lead to cost efficiencies in the long run.

12:48
PDT

Emphasis on small investments making a big difference.

Cantor Fitzgerald BGC Brandon Mene Katoshi Tom McKintosh AI digital assets cryptocurrency stable coins Nur Details

– Focus on digital assets and their real-world applications.

– Stable coins facilitate cross-border payments.

– Tokenization enables 24-7 trading of stocks.

– A strategic pivot towards emerging technologies is underway.

digital asset investmentemerging technologiesfinancial innovation

▸ Full transcript

Nur Details sehen, erkennst du die Möglichkeiten. Das ist für alle, die aus kleinen Insätzen einen großen Unterschied machen. Das ist für die Kraft der Finanz. While others follow the noise, we follow the money.

Analysis

The focus is on recognizing opportunities in finance, emphasizing the potential for significant impact from small investments. The message underscores a strategic approach to investing, prioritizing value and innovation over market noise.

Smart money should note the shift towards digital assets and the ongoing belief in their real-world applications, particularly in stable coins and tokenization. This indicates a long-term commitment to emerging technologies, suggesting that firms are positioning themselves for future growth in these areas.

12:46
PDT

BGC has consistently doubled its revenue since 2022.

BGC Cantor Fitzgerald Brandon Tyler AI

– The company is a leader in the inter-dealer broker market.

– BGC is committed to the digital asset space despite recent crypto market challenges.

– Focus on AI and prediction markets indicates a strategic growth area.

– Stable coins and tokenization are seen as key components for future market evolution.

digital assetsemerging technologiesAIprediction markets

▸ Full transcript

Those three companies have been performing extraordinarily well. Because we are a private partnership, we're able to be nimble and entrepreneurial. And with Cantor, for example, we were a first mover in the digital asset space. We're just really hoping to keep that momentum going with everything in emerging technologies, especially AI. The prediction market space is super exciting. BGC has doubled its revenue every single year since 2022. In terms of inter-dealer brokers, it's number one in terms of revenue. And finally, like BGC markets, BGC just announced a great deal of fattics to launch prediction markets. Last time we were here a year ago, we did talk a lot about some of your push into the digital crypto space. Obviously, crypto has been on the back foot for the last few months. That strategy, that treasury strategy, is that something you're still pursuing? If you've been in crypto for long enough, you know it ebbs and flows. The truth is though we're still big believers in the space. The reason we launched into it is because we believe it's a real-world value use case. It goes to the best technologies. Stable coins allow for cross-border payments, tokenization allows for 24-7 trading of stocks. So I think this is a natural progression for the market to go to and that's what we believe in it. Brothers, you now chair Cantor Fitzgerald and Tyler at the end there. You talked a little bit about that push that Brandon had made the company go into with regards to digital assets. At the time we had that conversation, Bitcoin was like at 110,000 bucks. I think as of today, it's back on.

Analysis

BGC has doubled its revenue every year since 2022, positioning itself as the number one inter-dealer broker in terms of revenue. The company remains committed to the digital asset space, believing in its real-world value despite recent volatility in cryptocurrencies.

Smart money should note that BGC's focus on emerging technologies, particularly AI and prediction markets, indicates a strategic pivot that could yield significant returns. The ongoing belief in stable coins and tokenization suggests a long-term vision for integrating digital assets into mainstream finance.

12:44
PDT

Cantor Fitzgerald aims to exceed last year's $15 million raised on Charity Day.

Cantor Fitzgerald Brandon New York U.S.Cantor Fitzgerald Charity Fund Charity Day

– A third of the U.S. population is too young to remember 9/11.

– The event focuses on resilience and community service.

– Younger employees are being educated on the company's history and values.

– Corporate responsibility is becoming increasingly important for new generations.

corporate social responsibilitycommunity engagement

▸ Full transcript

Over the next 10 years, he made that promise and stuck to his word, and since then we've pivoted the Cantor Fitzgerald Charity Fund to take care of so many more. Last year on Charity Day, we raised a record $15 million and gave to over 180 organizations, and this year, being the 25th anniversary, we're hoping to exceed that. I do want to ask you just about this idea that we have a whole generation of people now that weren't alive at the time that 9/11 happened. A third of the U.S. population was too young to see that firsthand. As you have new employees, younger employees coming into this company, what do you want them to know about not so much what Cantor suffered that day, Kyle, but more importantly what it's managed to build and rebuild in the 25 years since? So today, more than 100 million Americans were born after that day, which is about a third of the country. A lot of family members of those that were lost were here today, and that was a promise that Brandon mentioned that we give, and we make sure we honor that promise going forward. And so this morning, we sent around video footage from over the last 25 years to make sure that everyone understands what the point of Charity Day is. It's to make it so that it's a day of service, it's a day of giving back. It makes a difficult day a little bit easier to get through. And that's what we want people to know is America, New York, rising from the ashes and coming together. And we should point out, I mean, it's a solemn day, but there's a lot of energy in this room as the celebrities come through to contribute to that cause we are on your trading floor here. So these people are actually at work.

Analysis

Cantor Fitzgerald's Charity Day raised a record $15 million last year, with hopes to exceed that amount this year during its 25th anniversary. The event serves as a reminder of resilience and community spirit, especially for younger generations who did not experience the events of 9/11 firsthand.

The emphasis on honoring the past while fostering a culture of giving back highlights a shift in corporate responsibility. This approach may resonate with younger employees and investors who prioritize social impact alongside financial performance, potentially influencing future investment strategies.

12:38
PDT

U.S. administration aims to increase oil supplies from Venezuela.

U.S.Venezuela Chevron E&I Trump administration The Obama Keystone Pipeline Western Hemisphere United States CL=F

– Chevron and E&I are independently negotiating with Venezuela.

– Concerns exist over the legality of dealings with Venezuelan entities.

– Potential complications in U.S.-Venezuela relations could arise.

– Market dynamics may shift due to geopolitical factors.

geopolitical riskoil supply dynamics

▸ Full transcript

Well, you go back to when we freed up the exports of oil from the U.S. That was under the Obama administration. The Obama administration also was very careful. You look at what happened with the Keystone Pipeline. They wouldn't allow more imports because they were also at the same time trying to move away from fossil fuels. Part of also what this current administration is doing is trying to bolster supplies in the Western Hemisphere. I was just in Venezuela with the energy secretary as they announced this very unique joint partnership with a private company that's going to be able to drill more. Is that the right strategy at this point in time? It's a very strange strategy and one wonders how it might work or how it might not work. We have a couple of companies like Chevron and E&I that on their own are doing their own deals with the Venezuelan government and believe that they can pay for what they're upgrading that they're doing through the flow that they're getting out of it without engaging in something with a high profit. Now the Trump administration, as a government, has signed a deal with a Venezuelan-led corporation led by a human being who is one of the richest people in Venezuela. And how do rich people get rich in Venezuela? They do it through things that are kind of against the law in the United States. So there is something there that's going to make, at least on the Venezuelan side of things, complications. And we don't know what the reaction is going to be over time, both in the United States and in Venezuela. All right, I always appreciate your insights.

Analysis

The U.S. administration's strategy to bolster oil supplies in the Western Hemisphere, particularly through a partnership with Venezuela, raises questions about its effectiveness and legality. Companies like Chevron and E&I are pursuing independent deals with Venezuela, which may complicate U.S. relations and market dynamics.

Smart money should note the potential risks associated with U.S. companies engaging with Venezuelan entities, especially given the historical context of legality and profit motives in the region. The evolving geopolitical landscape could impact oil supply chains and pricing significantly.

12:36
PDT

U.S. is a leading net exporter of oil but has significant import needs on both coasts.

United States Alaska Gulf Coast Mexico Canada Jones Act Obama administration Panama Canal Pacific Basin West Coast CL=F

– The Jones Act complicates crude oil transport logistics.

– Cost considerations are limiting the effectiveness of potential policy changes.

– Refined product choke points remain a critical issue for the U.S. market.

– Diplomatic efforts in the Gulf may influence oil supply dynamics.

energy policyoil market dynamicslogistical challenges

▸ Full transcript

We did not have the capacity to address some of these refined product choke points given that we basically were the ones who started this war. Well, I think it was basically sloppy thinking. The U.S. is not just one country. It's six, if you think about the structure of the U.S. We are a very large net exporter from Alaska and the U.S. Gulf Coast. So much so that from a net export basis, we'd be the number two or three in the world. From a gross export basis, we're the largest in the world. But we have these two other coasts, the east and the west coast, which are very large importers of oil. And we have the borders, which are complicated, with more exports into Mexico and more imports from Canada. So it's highly complicated. And we have the Jones Act as well, which means that once we've had, under the Obama administration, a freeing up of exports without many restrictions on them, how do you put a restriction on it that makes sense? They tried. They thought about what to do about the West Coast. And certainly, lifting the Jones Act was an idea that they had that you could have international vessels picking up crude on the Gulf Coast, going through the Panama Canal and getting through to the West Coast. But guess what? The cost and price of that was higher than buying very expensive product from other parts of the Pacific Basin. So we really have this disconnect on diesel and gasoline on the way.

Analysis

The U.S. oil market is facing complexities due to its dual role as a major exporter and importer, with significant implications for refined product distribution. The lifting of the Jones Act was considered to facilitate crude transport, but cost factors hindered its implementation, highlighting a disconnect in diesel and gasoline pricing.

12:33
PDT

Saudi Arabia's pipeline shutdown signals increased geopolitical risk in oil supply.

Saudi Arabia Iran France U.S.Gulf nations United States Crown Prince

– Gulf nations are exploring diplomatic ties with Iran amid perceived U.S. withdrawal.

– The vulnerability of oil infrastructure could lead to supply disruptions.

– Alternative alliances may reshape energy security strategies in the region.

– Market participants should monitor developments in Gulf-Iran relations closely.

geopolitical riskenergy securityoil supply stability

▸ Full transcript

What happened is that the pipeline has been shut down. It's been shut down because one of its pumping stations has been hit, and hitting a pumping station reduces the flow through the pipeline until it's ultimately restored and fixed. We're looking at 12 different points that are all more vulnerable than people had thought when they were unprotected a few days ago. So what would a credible de-escalation signal look like to you? We are getting some news that maybe some diplomacy is happening; we have reporting that some of the Gulf nations are going to try to meet with Iranian officials as soon as this weekend in Oman. Would that be enough to ease some calm here? Yes and no. It gets more complicated the more you dive into what's happening. Certainly, the Gulf countries think that they have lost the protection of the United States. This is fairly obvious when we had the Crown Prince of Saudi Arabia going to France. The major reason clearly was that the nuclear agreement with the U.S. might not go through and might not be able to deliver on providing nuclear power, but France would certainly be interested in replacing it. Similarly, with keeping the Strait of Hormuz open, the U.S. has not succeeded in doing that. So they are serious about talking.

Analysis

Saudi Arabia's east-west crude oil pipeline has been shut down due to attacks on its pumping stations, raising concerns about the vulnerability of multiple points along the pipeline. Gulf nations are reportedly seeking diplomatic engagement with Iran, indicating a shift in regional dynamics as they feel the loss of U.S. protection.

The situation highlights a critical inflection point in Middle Eastern geopolitics, where the Gulf states may increasingly turn to alternative alliances, such as with France, for security and energy cooperation. This shift could have significant implications for oil supply stability and pricing in the region, as the U.S. role diminishes.

12:31
PDT

Crude oil prices declined despite pipeline shutdown.

Saudi Arabia Houthis Ed Morris Hartree Partners Bloomberg FOMO Francine Lacroix David Gerrite New York Remain Bostic Tyler Kendall Red Sea PRIVATE CL=F

– Saudi Arabia's east-west pipeline is now offline due to security concerns.

– The Houthis are gaining ground, threatening key shipping routes.

– Market may not fully price in the geopolitical risks.

– Potential for future supply disruptions in the energy market.

geopolitical riskenergy market volatility

▸ Full transcript

That's for sure. Do it for the right reasons. Don't do it because of FOMO. We'll also learn lessons which we can apply to our work and daily lives. Tune into the podcast version of Leaders with Francine Lacroix. Listen and watch on Bloomberg television or wherever you get your podcasts. Bringing you up to the minute news whenever and wherever it happens. I'm David Gerrite in Askin, Colorado and this is Bloomberg. 3:30 P.M. here in New York. This is the countdown to the close, I'm Remain Bostic. And I'm Tyler Kendall. Let's now take a look at the energy market with crude oil falling today, despite Saudi Arabia shutting down its crucial east-west crude oil pipeline as a precaution after a series of attacks, according to the kingdom's energy ministry. Here to discuss is Ed Morris, a senior advisor and commodities analyst at Hartree Partners. So, Ed, Saudi Arabia has been an example of a country that has successfully used these alternate routes, the east-west pipeline exporting the other Red Sea, but now we have credible reporting that the Houthis are making significant gains to shut down the Bab el-Mandeb Strait. The kingdom had been preparing; we know they've been trying to shuttle oil through Egypt's Mediterranean coast but I am one.

Analysis

Crude oil prices fell today despite Saudi Arabia shutting down its crucial east-west crude oil pipeline due to a series of attacks. This situation highlights the ongoing geopolitical risks in the region, particularly with the Houthis making significant gains to threaten key shipping routes.

Smart money should note that while Saudi Arabia has historically adapted its oil export routes, the current instability could lead to supply disruptions that may not be fully priced into the market. The evolving dynamics in the Middle East, particularly with the Houthis' advances, could create volatility in energy prices moving forward.

12:30
PDT

Markets are experiencing volatility due to multiple economic pressures.

Ed Cantor Fitzgerald Christian Wall Howard Kyle Brandon Kevin Warsh Scott Besant Francine Lacqua Francine Lacroix

– AI capital expenditure is expected to reach trillions, presenting investment opportunities.

– Technological advancements are reshaping financial markets significantly.

– Investment in technology and infrastructure is seen as a long-term growth strategy.

– The current economic environment requires careful navigation of risks and opportunities.

market volatilityAI investmentfinancial technology

▸ Full transcript

On everything that we care about: the economy, media and information, markets, trade, and geopolitics. Pressing and it was disappointing. My chair at the time sat down with me and said, 'Succession starts now.' I'm Francine Lacqua, an award-winning journalist. For the last 25 years, I've interviewed world leaders, bank bosses, and even fashion icons. I'm often asking about the news of the moment, but I've always been curious: who are these people as leaders? Join me for the podcast version of Leaders with Francine Lacroix. I'll start your week with conversations that explore what drives the world's most influential people and how today's leaders got to where they are.

Analysis

The conversation highlights the ongoing uncertainty in the markets due to elevated energy prices, long-term interest rates, and sticky inflation, which are creating volatility. The focus on AI capital expenditure suggests a significant investment opportunity, with expectations of trillions in spending, indicating a pivotal moment for market dynamics.

Smart money should note the potential for transformative changes in financial markets driven by technological advancements like tokenization and blockchain. The emphasis on responsible investment practices in the face of these changes is crucial, as the landscape may look vastly different in the coming years.

12:28
PDT

Financial markets are at an inflection point due to new technologies.

Dr. Fitzgerald Branden Kyle Lutnick Ed Cantor Fitzgerald Christian Wall Howard Kevin Warsh Scott Besant

– Tokenization and blockchain are reshaping market structures.

– AI infrastructure investments are still in early stages.

– Capital expenditure in technology is projected to be in the trillions.

– Responsible investment practices are essential in the evolving market.

blockchaintokenizationAI investmentcapital expenditure

▸ Full transcript

It's changed. We talk about, obviously, tokenization, prediction markets, blockchain, all of these sort of relatively new phenomena. And they've clearly already reshaped financial markets. Do you anticipate that these things will almost 100% wholesale reshape them in a way where they're going to look a lot different than when you started your career? I think we're at an inflection point. I think we're at an inflection point and I think you're feeling that across all markets, not just the debt markets. So yeah, I think five years when we sit down again and talk about this, we might have a different conversation. Some see heroes. Others only egos. We see the era of billionaire athletes. A fad to some. The future of money to others.

Analysis

The conversation highlights a significant inflection point in financial markets driven by innovations like tokenization and blockchain, suggesting a transformative shift in how markets operate. This evolution is expected to reshape the landscape dramatically over the next five years, indicating a potential redefinition of investment strategies and market dynamics.

Smart money should note the growing importance of AI and technology investments as firms prepare for a substantial capital expenditure cycle, which could reach trillions of dollars. The emphasis on responsible investment practices in this evolving landscape will be crucial for long-term sustainability and growth.

12:25
PDT

Investment in AI infrastructure is still in early stages.

Ed Cantor Fitzgerald Christian Wall Howard Kyle Brandon Kevin Warsh Scott Besant AI CAPEX DXY

– Projected capital expenditures in AI are expected to be in the trillions.

– The firm is expanding its tech capital markets to align with equity successes.

– There is a focus on responsible structuring of debt products.

– Long-term growth potential remains uncertain.

AI infrastructure investmentcapital expendituresdebt structuring

▸ Full transcript

Where is that level where that opportunity kind of starts to turn into genuine risk or concern, I should say? You know, that's a tough question to answer. I think really it's sort of like, what's the short-term opportunity and what's the long-term play? And I really think that the long-term play is, what is the growth going to look at on the back end of all this, right? We deal with this ourselves. We're investing in technology. We're investing in the firm. What are the revenue results going to be on the back end of that? And I think that's what you're seeing on a bigger scale. Are you interested, I should say, in doing more activity specifically in the AI infrastructure space, or have we gotten to the point where that sort of investment cycle is looking maybe a little too tight? Absolutely. I think that we're still pretty early in that investment cycle. And if you think about the estimates and what the CAPEX spend is going to be, certainly on the debt side, it's in trillions of dollars. The range is in the trillions of dollars. Nobody knows exactly what that number is going to be, but it's going to be real and it's going to be big. And we've been building out our tech capital markets business to mirror what we have on the equity side over the last couple of years and build on their success to be ready for that opportunity when it presents itself. With regards to that though, I mean, obviously, you know a lot about just structuring products in the debt space. And we've seen a lot of creative ways to sort of find this multi-trillion dollars that people say we're going to need over the next few years. Do you think it's being done in a responsible way? Not only from your end but just overall more broadly.

Analysis

The conversation highlighted the ongoing investment opportunities in AI infrastructure, with expectations of significant capital expenditures in the trillions of dollars. The firm is actively building its tech capital markets business to capitalize on this anticipated growth, indicating a bullish outlook on the sector.

Smart money should note that while the investment cycle in AI is still early, the potential for responsible structuring of debt products to meet these capital needs is crucial. The uncertainty surrounding the long-term growth and revenue results from these investments presents both risk and opportunity in the market.

12:23
PDT

Energy prices and long-term interest rates are at elevated levels.

Kevin Warsh Scott Besant Federal Reserve CPI AI FEDFUNDS

– Recent CPI report indicates persistent inflation.

– Market uncertainty is driven by multiple converging economic factors.

– AI capital expenditure is influencing supply dynamics.

– New Fed leadership may alter primary dealer operations.

monetary policyinflation dynamicsAI investment trends

▸ Full transcript

Complications, energy prices elevated, long-term interest rates at their highest in a couple of decades, short-term interest rates now seeming to suggest that the Fed is going to have to raise rates soon one way or the other. And a hot CPI report that we got this morning, what is the trading environment around a rate and inflation environment like that? Well, as you mentioned, there's a series of things that are occurring at the same time and I think that confluence of events has led to some uncertainty in the markets, which has cost and volatility. I think the real question is, what is the long-term impact? And I think if you think about one of the inputs that you didn't mention, which is the AI cap expend, the absolute supply that's coming to the market, I think the market is trying to figure out, okay, we have a new Fed chair, we have a pretty robust economy, yet sticky inflation, and we have a supply dynamic that people talk about all day long, that adds up to a market that is like, well, what's it supposed to look like down the line? Well, I mean, you run one of a couple of dozen of the primary dealers out there, and I am curious with the new Fed president in Kevin Warsh and the tax that he's taken, at least publicly what we know he's taken, as well as some of the moves that Scott Besant has made, does that make your job as a primary dealer harder? No, I wouldn't say it necessarily makes it harder and it's not my job to apply.

Analysis

The trading environment is marked by elevated energy prices, long-term interest rates at multi-decade highs, and a hot CPI report, leading to market uncertainty and volatility. The interplay of a new Fed chair, a robust economy, and sticky inflation creates a complex landscape that market participants are struggling to navigate.

Smart money should note that the introduction of AI capital expenditure is a significant factor influencing supply dynamics, which could reshape market expectations. The evolving role of the Fed under Kevin Warsh may also impact primary dealers' operations, suggesting a need for adaptive strategies in response to changing monetary policy.

12:22
PDT

Cantor Fitzgerald emphasizes resilience as a core cultural value.

Cantor Fitzgerald Ed Cantor Fitzgerald Christian Wall Howard Kyle Brandon CEO DNA

– Leadership transitions have led to aggressive growth strategies.

– The firm is coming off a record year in 2025.

– A focus on building rather than maintaining indicates strong operational momentum.

– The internal culture is positioned to adapt to market changes.

resilienceaggressive growthleadership transition

▸ Full transcript

Action! What's the coolest thing you can grow with money? What do you actually do? Is this just for rich people? How do you know what to choose? We get a lot of smart people together. We're analyzing all of the data. We're doing research. And we're pulling all that together to think about what would be the best investment today that will make money in the future. Invest like the future is watching. As we continue our coverage here on the 25th anniversary of 9-11, here is part of our conversation with co-CEO Ed Cantor Fitzgerald, Christian Wall. The culture of this place, I mean clearly resilience, right? You don't rebuild a company after a tragedy happened 25 years ago without instilling a resilient DNA in place. And it's a really, it's a next up kind of culture. You saw that over the last year or so when Howard went to commerce, Kyle and Brandon took over leadership of the firm. And along with my partners and I have not only moved forward, but it's not just a status quo. It's building, it's growing, it's aggressive. And it's a great place and it's a privilege to work here. The company has obviously blossomed and it's coming off of a record 2025. Give me a sense here with regards to the business itself.

Analysis

Cantor Fitzgerald's culture of resilience has been pivotal in its growth following the 9/11 tragedy, with leadership transitions fostering an aggressive growth strategy. The firm is coming off a record year in 2025, indicating strong operational momentum and a commitment to building rather than maintaining the status quo.

Smart money should note that the emphasis on resilience and aggressive growth in leadership transitions suggests a robust internal culture that can adapt and thrive in changing market conditions. This positions Cantor Fitzgerald favorably for future investment opportunities as it continues to leverage its historical lessons into actionable strategies.

12:20
PDT

Discussion on JPE ETF indicates potential shifts in investment strategies.

Dr. Fitzgerald Branden Kyle Lutnick JPE ETF JPE ETF Fitzgerald Branden JPE ETF

– Focus on evolving financial instruments suggests new opportunities for investors.

– Market participants should monitor developments in ETF structures.

– The conversation reflects a broader trend towards innovative investment vehicles.

– Insights from Branden and Lutnick could inform strategic asset allocation.

ETF innovationinvestment strategy

▸ Full transcript

Dr. Fitzgerald Branden und Kyle Lutnick. Versuche nach JPE ETF.

Analysis

Dr. Fitzgerald Branden and Kyle Lutnick discussed attempts related to JPE ETF, indicating a focus on investment strategies in the current market landscape. The conversation hints at evolving financial instruments that could reshape investment approaches, particularly in ETFs.

12:17
PDT

Resilience in financial systems is critical during crises.

KBW Thomas Schoder Cantor Christian Wall Brandon Lutnick Kyle Lutnick Edward Schuyler Citi Edie Lutnick SL Green Matt de La Berra Bloomberg

– Strong company culture and teamwork are essential for recovery.

– Conservative management practices can mitigate risks.

– Philanthropic efforts can enhance corporate reputation.

– 9-11 Day has evolved into a significant national service initiative.

corporate governancedisaster recoveryfinancial resiliencephilanthropy

▸ Full transcript

The definition of 'never forget' is very personal, and I think it's appropriate for folks to have their own interpretation of what it means for them. For us, it means action, and we are going to honor the victims by doing something meaningful, like what we are doing today. Tonight, we will have a reception with over 300 family members who are in New York to visit the site, and we will stay connected with them. We have maintained relationships with many of them, and frankly, it puts energy and fuel in our tank, for which we are grateful. Before we let you go, Tom, I must ask you about the resiliency of the financial system and the lessons learned about ensuring that not just the financial sector, but the economy can withstand these once-in-a-generation shocks. The first thing is that, as a public company CEO, we had to implement disaster recovery as part of our good governance, but we actually lived through disaster recovery, so it's very real for us. Running your company conservatively and taking care to be prudent is appropriate. However, when a crisis occurs, you want to ensure you have the culture, teamwork, and ferocity; we had a great culture with strong shared values, and I believe those features allowed us to endure. But let me tell you a story.

Analysis

The discussion highlighted the importance of resilience in the financial system, emphasizing that a strong culture and teamwork are crucial during crises. The speaker noted that running a company conservatively and maintaining shared values helped them endure significant challenges.

12:15
PDT

KBW is a founding sponsor of 9-11 Day, promoting it as a national day of service.

KBW 9-11 Day Congress IT

– The firm is packing 17 million meals for food insecurity with significant volunteer involvement.

– Efforts aim to ensure 9-11 is remembered beyond a historical footnote.

– Community engagement can enhance corporate reputation and loyalty.

– Over 800 corporate sponsors are involved in the service event.

philanthropycommunity engagement

▸ Full transcript

Help with IT showed up. It was really incredible, and they never asked for anything in return, either one of those firms or any of the other folks who called to help us over the years. Well, as you've noted, out of the devastating personal loss, it also helped to fuel a massive philanthropic effort. I know that includes the KBW family fund, also a push to recognize 9-11 as a national day of service in the last quarter of a century. Can you talk to me about how those efforts have evolved and how you are ensuring that they are sustained over time? So let me start with a little bit of a fear of mine and ours, which is that 9-11 will become two paragraphs in a history book. It is much more than that, and that cannot happen, and we've dedicated ourselves to not letting that happen. We have worked very hard to lean into this resilience, this goodwill, this unity that happened after 9-11. And we feel the best way to honor the victims is to make 9-11 a day of action, a day of national service. So KBW was a founding sponsor of 9-11 Day. We convinced Congress to make 9-11 Day a national day of service. So let me tell you what's happening today. Today we are packing, and 9-11 Day has one service event, but we encourage anyone to do any service on the day. Today we're gonna pack 17 million meals for those who are food insecure with over 60,000 volunteers and over 800 corporate sponsors. It's the single largest day of service in America.

Analysis

KBW has evolved its philanthropic efforts post-9/11 into a national day of service, emphasizing resilience and unity. The firm is actively engaging over 60,000 volunteers to pack 17 million meals for the food insecure, showcasing a significant commitment to community support.

Smart money should note that KBW's initiative to make 9/11 a day of action not only honors the victims but also strengthens community ties, potentially enhancing brand loyalty and corporate reputation. This could lead to increased engagement from corporate sponsors and volunteers, reflecting positively on the firm's long-term sustainability and social impact.

12:13
PDT

Markets expect a 90% chance of a Fed rate hike next week.

Goldman Sachs Fed Kevin Warch Bill Dudley KBW Thomas Schoder John Duffy Andy Senchak Cantor Christian Wall Brandon Lutnick Kyle Lutnick

– Historical precedent suggests multiple rate hikes are likely.

– The Fed is focused on achieving a 2% inflation target.

– Rebuilding efforts post-9/11 highlight the importance of resilience.

– The current economic environment is influenced by AI investment spending.

Fed policyrebuilding effortsinflation control

▸ Full transcript

So many great stories about rebuilding and resiliency. You were a young guy running the equity business there. But then a couple of weeks after this, basically, you got promoted to COO. I think there was a new vice chairman role that was also created. And you were kind of handed this task of, where do we go next for KBW? Well, so first of all, we also created an office of the chairman at the time. So it was myself, John Duffy, and Andy Senchak who were the top three folks. 66 of our 67 colleagues came from the equity side of our firm. And so collectively, we all focused to go ahead and rebuild the firm. And really what we did after 9-11 is we gathered ourselves and tried to come up with our priorities. The first priority was to do what we could to take care of the families of the victims. We decided that rebuilding the firm was going to be the way to do that and that it was a great way for us to channel our energy. Some of it was somewhat therapeutic for us. And that's when we put our shoulder down and said, we're going to rebuild this firm. This firm cannot end that way. Well, you know, we were just talking with Bill Dudley, and he shared a great story. He was on one of the flights, international flights that got diverted. He spent a few days in Canada. He was talking about the hospitality of the people there as they were stranded. There was a lot of hospitality on Wall Street. And I know for KBW, but for a lot of firms that lost their, not just their people, but their offices, there were a lot of other banks that said, 'Hey, you could come to this facility and camp out.'

Analysis

The discussion highlighted the Fed's commitment to raising interest rates, with markets pricing in a 90% probability of a hike next week. The emphasis on inflation control suggests that multiple rate hikes may follow, reflecting a proactive stance against potential inflationary pressures.

Smart money should note the Fed's historical tendency to implement consecutive rate hikes, indicating that the current market expectations may be conservative. Additionally, the focus on rebuilding and resilience in the financial sector post-9/11 underscores the importance of adaptability in crisis management, which could influence investor sentiment and strategy.

12:12
PDT

Markets are pricing in a 90% probability of a Fed rate hike next week.

Bill Dudley Goldman Sachs Federal Reserve CPI Kevin Warch AI Jackson Hole Bloomberg KBW Cantor Citi SL Green PRIVATE

– Dudley suggests more than one rate hike is likely in the near future.

– The Fed's credibility is at stake if it fails to act on inflation.

– AI investment spending is a key driver of the current strong economy.

– Historical patterns indicate the Fed typically moves more than once at a time.

Fed policyinflation controlAI investment

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A new digital order isn't defined by technology alone. As sovereign AI reshapes digital independence, as agentic AI transforms decisions, as quantum unlocks new possibilities, every breakthrough demands a cyber-first mindset. That's why the future meets at Gisec Global, the Middle East and Africa's largest cybersecurity event. We shape policy and power innovation. We protect the digital order. Some see heroes. Others only egos. We see the era of billionaire athletes. While others follow the noise, we follow the money. Rio de Janeiro and this is Bloomberg. KBW's headquarters were in the South Tower of the World Trade Center back on September 11, 2001. The firm lost 67 people that day. Thomas Schoder was in the head of equity at the firm and was then tasked just a few weeks later with trying to rebuild the business, the trading, the research operations, and of course the emotions of all of the people who had.

Analysis

The discussion highlights the significant impact of past crises on current financial policies, particularly the Fed's approach to interest rates and inflation. Bill Dudley emphasizes the need for a proactive stance on rate hikes to prevent inflation from spiraling out of control, suggesting that the market is underestimating the Fed's commitment to its 2% target.

Smart money should note that the Fed's historical tendency to implement multiple rate hikes in succession indicates a more aggressive monetary policy approach ahead. The current economic landscape, characterized by strong AI-driven investment, may complicate the Fed's balancing act between controlling inflation and maintaining employment levels.

12:09
PDT

Dudley advocates for immediate Fed rate hikes to address inflation risks.

Bill Dudley New York Fed Bloomberg KBW Cantor Citi SL Green Edie Lutnick Thomas Scho Christian Wall Brandon Lutnick Kyle Lutnick PRIVATE FEDFUNDS

– Market anticipates multiple rate hikes, not just one.

– Historical context suggests Fed typically implements consecutive rate increases.

– AI investment spending is a significant factor in current economic strength.

– Fed's credibility is at stake if inflation is not managed effectively.

Fed policyinflation managementinterest rates

▸ Full transcript

Inflation target to the upside for more than five years. If you didn't have that, then it'd be a lot easier to wait because if you don't act now and it turns out that inflation gets out of hand, people are going to, with the hindsight of history, say, well, what were you doing at that moment in time? So the risk-reward is definitely to go ahead and raise rates. All right, Bill, really appreciate you joining us today. Thank you. Bill Dudley, their former New York Fed president and now also a Bloomberg opinion columnist. When we come back after the break, we're going to have more from key stakeholders at the heart of New York's return from that tragic day 25 years ago. We're going to hear from the KBW CEO, Thomas Scho, Cantor Co-CEO, Christian Wall, Cantor Chairman Brandon Lutnick, as well as Vice Chairman Kyle Lutnick. We're also going to hear from Edward Schuyler, now at Citi, but he was a key member of the Bloomberg administration during the rebuilding in the 2000s. We're also going to hear from Edie Lutnick, who runs the Cantor Fitzgerald Relief Fund, from Matt de La Berra, the CFO of SL Green and also a firefighter. Here are some of the special voices that we already had a chance to catch up with at Cantor's Charity Day earlier this morning.

Analysis

Bill Dudley, former New York Fed president, emphasized the necessity for the Fed to raise interest rates to combat persistent inflation, warning that inaction could lead to historical scrutiny. He indicated that the market is pricing in multiple rate hikes, suggesting a proactive approach is essential to maintain credibility and control inflation expectations.

Smart money should note that the Fed's commitment to a 2% inflation target may lead to a series of rate hikes, as historical patterns show that the Fed typically moves more than once at a time. The current economic environment, characterized by strong AI investment spending, complicates the Fed's decision-making, as it seeks to balance inflation control with labor market stability.

12:07
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Multiple rate hikes expected from the Fed.

Fed Worship AI Jackson Hole The Fed FEDFUNDS

– Market pricing in 75 basis points of hikes.

– Focus on inflation remains a priority for the Fed.

– AI investment spending is a key economic driver.

– Economic data will influence future Fed decisions.

Fed policyinflation focusinterest rates

▸ Full transcript

Impact how aggressive the Fed should be when it does start hiking? Well, monetary policy, as we all know, is a very blunt instrument. And higher interest rates affect different parts of the economy. As you pointed out, the AI investment spending boom is one of the big reasons why we have such a strong economy. And obviously, we don't really want the labor market to get weaker. We're at full employment. We don't have a lot of wage pressure. So your point is well taken. Monetary policy is not a perfect instrument, but it's sort of the only game in town right now. But when we start to talk about this idea, though, of the Fed's mandate and what is clearly, at least if you believe the tone of what Worship's speech in Jackson Hole was about, that this is now certainly much more of a focus on inflation and a commitment to getting back down to that 2 percent target, one rate hike isn't going to get us there, I would assume. So if we do, on the off chance, get that rate hike next week, should we assume that another one and then another one is coming shortly after? It would be a huge surprise if there wasn't more than one. If you look through history, the Fed always moves more than one move at a time. The reason for that is obviously 25 basis points doesn't do very much. If you look at where the market's priced today, the market's expecting about 75 basis points of rate hikes. That's actually convenient because that offsets the 75 basis points of easing. The Fed would just be unwinding that. I think there's going to be more than one next week and probably one this summer. It depends on the economic data, how the economy unfolds. I mean, the Fed's made a lot of forecasts over time and some of them work out and some of them not so much. Yeah. I'm wondering what you've made of the fact that so.

Analysis

The Fed is likely to implement multiple rate hikes in the near future, as one hike alone will not suffice to address inflation concerns. The market is currently pricing in approximately 75 basis points of rate hikes, indicating expectations for a more aggressive monetary policy approach.

Smart money should note that the Fed's focus on inflation and the potential for multiple rate hikes could impact sectors sensitive to interest rates, particularly those benefiting from the AI investment boom. The current economic environment suggests that the Fed's actions will be closely tied to upcoming economic data, which could lead to volatility in the markets.

12:05
PDT

Oracle's stock reversed gains after strong earnings due to high CapEx concerns.

Oracle Microsoft Adobe Bill Dudley Goldman Sachs Federal Reserve CPI Jersey City Wall Street New York To Romain Kevin Warch FEDFUNDS GC=F

– Microsoft is significantly expanding its data center capacity amid AI competition.

– Adobe's revenue forecast slightly missed expectations but showed resilience against AI disruptions.

– Investors are cautious about the sustainability of high CapEx in the tech sector.

– The market is reacting to potential Fed rate hikes based on recent CPI data.

CapEx concernsAI competitionFed policy

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There was something even more severe underneath the surface with a kind of breakdown in our payment systems and our liquidity, etc. You were at Goldman Sachs at the time, at the Fed, but I am curious just from your seat being at a major bank like that, when you finally did make it back to work, what was going on to try to get things back up and running? Well, people are obviously scrambling as best they can. And I think what we learned there is we need more resiliency. One of the problems that we had that day is people had contingency sites in Jersey City, and Jersey City was not far enough away from Wall Street to actually have the necessary redundancy. So over the years, people now have second sites that are really in a whole different area code, and so we have a lot more resiliency as a result of that event. You are so deeply tied to the New York financial community, and on such an emotional day, we thank you and appreciate you being here. To Romain's point, 9-11 really helped to cement the Fed's credibility as a crisis backstop. We did want to get some of your thoughts today on the current policy outlook when it comes to the Fed. We got the CPI data. Markets have priced in a Fed rate hike. But if they don't deliver, what does that do to Fed credibility, or are traders perhaps overreacting to the energy-driven inflation that we saw in the data today? Well, markets priced about a 90% probability of the Fed raising rates next week. Kevin Warch has said that he believes in Fed independence. He's committed to the 2% inflation objective.

Analysis

Oracle shares fell by 1% after initially rising nearly 9% following strong fiscal first-quarter results, with cloud computing sales exceeding expectations. The significant CapEx of $28.5 billion raised investor concerns about the sustainability of such high investments amid intensifying competition in the AI sector.

Microsoft's plans to triple its data center capacity reflect a strategic pivot in the AI space, but there are underlying worries about whether such expansions are justified. Analysts are noting that while Adobe's recent report showed resilience against AI disruptions, the upcoming leadership change could introduce uncertainty in its strategic direction.

12:03
PDT

Market volatility persists due to political and macroeconomic factors.

Bill Dudley Goldman Sachs Bloomberg FAA Canada Newfoundland Walmart New York Fed Come From Away United States PRIVATE FEDFUNDS GC=F

– Focus on rates and inflation remains critical for investors.

– Historical events like 9/11 can provide context for current market dynamics.

– Investor sentiment may be influenced by reflections on past crises.

– The kindness shown during crises can impact public perception and trust.

market volatilityhistorical contextinflationcentral bank policy

▸ Full transcript

The market has been trading water amid a barrage of political and macroeconomic volatility. We're going to try to bridge that gap today. We kick off the close today with none other than former New York Fed president Bill Dudley, former economist at Goldman Sachs, and also a Bloomberg opinion columnist. Bill, it's great to see you, and we're definitely going to talk rates and inflation, all the other things we normally bore you about. I was looking back at what transpired on 9/11, particularly the big FAA ground stop that went into effect at about 9:45 a.m. that morning. There were a lot of flights that were not allowed to land in the U.S., including international flights that were diverted to Canada. There's a very famous musical called 'Come From Away,' which depicts a lot of folks coming to the U.S. who basically got stuck in Gander, Newfoundland, for several days. You were on one of those flights, not to Gander but to another town, St. John's, Newfoundland. It was the same story. When we went to the play a few years later when the play came out, they nailed it. It was exactly what it was like. The thing that was most memorable to me was obviously first trying to understand what was actually going on in the United States. Because the pilot wouldn't tell us when we landed. He just said there's nothing wrong with the plane and we'll tell you when we get on the ground. That's a pretty scary idea. The thing that we remember the most is the kindness of the Canadians. They took us in. They housed us. They clothed us. We were there six days, sleeping in a church every evening. And every day we'd go down to Walmart and buy.

Analysis

The market is experiencing volatility amid political and macroeconomic uncertainties, with a focus on rates and inflation. Former New York Fed president Bill Dudley reflects on the impact of 9/11, emphasizing the importance of understanding historical events in shaping current economic conditions.

12:01
PDT

S&P 500 up nearly 1%, Dow up over 500 points.

JPM Oracle Microsoft Adobe S&P 500 Dow Brent crude Bloomberg Haslinda Arnim Carol Masser Tim Steneveck Tatiana Darie PRIVATE

– Oracle shares reversed from a 9% gain to a 1% loss after strong results.

– CapEx concerns are impacting investor sentiment.

– Microsoft plans to triple data center capacity to support AI growth.

– Adobe's results indicate minimal disruption from AI tools.

AI demandCapEx concernsmarket resilienceequal-weighted stocks

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The crystal ball here, but looking back to the dot-com era, what happened then when the investment boom stopped and when the market bust sort of when the market imploded? That shows that the equal weight outperformed, and that is going to be the next leg of the trade for those adopters who are reaping the benefits of the technology. All right, something to keep on your radar as we head into the weekend. Tatiana, thank you so much. Hey, for those watching on TV, the close is coming your way in just a moment, but Tim and I are continuing right here on Bloomberg Business Weekday. We are back in a moment. Bringing you up-to-the-minute news whenever and wherever it happens, I'm David Gerra in Aspen, Colorado, and this is Bloomberg. Welcome to a special edition of The Close this Friday, September 11th. I'm Romain Bostic alongside Tyler Kendall, covering the news that is moving markets today here in 2026, but at the same time reflecting on what happened in 2001. Now the guests you'll see over the next two hours, they do bridge that gap. There are personal stories to tell about what happened 25 years ago, but we're also putting emphasis on the economic stories that are inspired in the year since. From the more visible triumphs of rebuilding lower Manhattan to the more arcane but necessary changes to our financial system, a system that went dark in 2001, including the longest shutdown of U.S. stock markets since the Great Depression. Economic activity, which was already officially in recession.

Analysis

The market is showing signs of resilience with the S&P 500 up nearly 1% and the Dow gaining over 500 points, despite concerns over inflation and rising interest rates. Oracle's stock experienced a significant reversal after strong fiscal results, highlighting investor anxiety over increased capital expenditures amidst a competitive AI landscape.

Smart money should note the shift towards equal-weighted stocks as a potential strategy, reminiscent of the dot-com era's aftermath. Additionally, the strong performance of Oracle's cloud business, despite CapEx worries, suggests that demand for AI-related technologies remains robust, which could influence future investment decisions.

11:58
PDT

Adobe shares increased by 2% following a strong earnings report.

Adobe Tatiana Dari Carol Masser Tim Steneveck CAPEX AI CEO In Adobe AAPL

– Revenue forecast slightly missed analyst expectations, causing initial concern.

– Analysts believe AI tools are not significantly disrupting Adobe's software business.

– A new CEO will join Adobe in December, adding uncertainty to future strategy.

– Market sentiment appears to be stabilizing despite initial worries.

AI disruptionCEO transitionearnings performance

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Back last year, remember? Yeah, and that was all, you know, mid concerns about this building or build-out. Are they worth it? There are still, at that point and right now, it is a decision that maybe apparently they are regretting, although the company has not confirmed those reports and has denied them, instead sending us to their last press release and their latest CAPEX guidance. Let's get to Adobe. What do you have on that one? In Adobe, the last mover was higher by 2% and also took traders a little bit to warm up to this report. Shares were lower after the numbers hit. Perhaps also a little bit of a rising tide of equities lifting this stock here. But it was a pretty clean report for the third quarter, beating expectations on both top and bottom lines. Its revenue forecast slightly missed the midpoint of analyst expectations, which caused some worry earlier. But analysts have come out to say that the results suggest little disruption from AI tools, and that's key here because that is the big worry with this stock. Also, we have a new CEO coming in in December. Lots to worry about, but crucially we don't see any big warning signs that AI is really disrupting software right now. Markets live strategist Tatiana Dari with our stocks on the move for more conversations like this. Check out stock movers on Apple, Spotify, or anywhere you get your podcasts. Tatiana, we are keeping you around because you have this great column. This has been what Carol and I...

Analysis

Adobe shares rose by 2% after a clean third-quarter report that beat expectations, despite a slight miss in revenue forecast. Analysts noted that there are no significant warning signs indicating that AI tools are disrupting the software sector, which is crucial for investor confidence.

The market's initial reaction to Adobe's earnings was cautious, but the subsequent analyst commentary suggests that fears around AI disruption may be overblown. With a new CEO set to take over in December, investors should monitor how leadership changes might impact strategic direction and market positioning.

11:56
PDT

Oracle shares initially rose nearly 9% but closed down 1%.

Oracle Microsoft Bloomberg AI Bluebird News Tatiana Darie MSFT PRIVATE

– Cloud computing revenue exceeded expectations, surpassing $7 billion.

– Capital expenditures reached a record $28.5 billion, raising investor concerns.

– The AI demand story remains strong, but costs are escalating.

– Microsoft plans to triple its data center capacity to support AI growth.

AI demandCapEx concernscloud computing growth

▸ Full transcript

Stenevac, Bluebird News markets live strategist, rejoining us also as well Tatiana Darie. She's here in studio. Gotta talk about Oracle. This has certainly been in focus today. Yes, shares are lower here by one percent and have done a massive reversal today. Shares were higher by nearly nine percent when the stock opened. This was after very strong results in their fiscal first quarter. The cloud computing business grew more than expected, with sales more than doubling to over 7 billion in the quarter. Importantly, the company also disclosed another 30 billion in additional revenue, booking that as... It was a strong report. It was a strong report reinforcing the AI demand story, which is really key as we see price wars intensifying amid global competition in the AI space. But costs are also going up, and that is sort of the twist in the story. CapEx in the quarter was well above expectations. I looked it up; it was 28.5 billion in the quarter, a record in Bloomberg data going back to the 90s, so the stock's reaction really signals here that CapEx worries are alive. They're there; investors are watching and really worrying about the math of all of these investments. Okay, speaking of CapEx investment, let's go to Microsoft. Yeah, another big story overnight in the AI space; the company is planning to more than triple its data center capacity, and the aim here is to bring more global data centers to support 38 gigawatts of capacity.

Analysis

Oracle shares fell by 1% after a significant reversal, despite initially rising nearly 9% following strong fiscal first-quarter results. The company's cloud computing business exceeded expectations, but concerns over rising capital expenditures, which reached a record $28.5 billion, are weighing on investor sentiment.

Smart money should note that while Oracle's revenue growth reinforces the AI demand narrative, the escalating costs associated with capital investments could impact future profitability. This signals a potential cautionary trend in the tech sector, particularly for companies heavily investing in AI infrastructure amidst intensifying competition.

11:54
PDT

S&P 500 up nearly 1% with significant gains in the Dow.

S&P 500 Dow Jones Brent crude Federal Reserve ETF IQ Haslinda Arnim Bloomberg Business Week Daily Carol Masser Tim Steneveck Bloomberg Radio New York City PRIVATE S&P 500 FEDFUNDS CL=F DXY

– Inflation data released, impacting market sentiment.

– Most stocks in the S&P 500 are trading higher.

– 10-year note yields are just below 5%.

– Brent crude oil prices fell by about 2.5%.

inflation trendsinterest rate expectationsenergy prices

▸ Full transcript

Join me for in-depth conversations with the biggest newsmakers on the day's top stories. Insight with Haslinda Arnim only on Bloomberg. It's a multi-trillion dollar industry. We'll show you what's happening in ETFs like no one else. ETF IQ Mondays on Bloomberg. This is Bloomberg Business Week Daily with Carol Masser and Tim Steneveck on Bloomberg Radio and Television. All right everybody coming up on the last hour of trading for the day and for the holiday short and trading week overall. Carol Masser and Tim Steneveck live at Bloomberg headquarters in New York City, a market where we had another inflation print this morning. But you know, check it out, you got stocks S&P 500 off its best levels of this session but still up just shy of one full percentage point, more than a 500 point move to the upside in the Dow, that's your index of choice, up 1%. Now let's take 100 again of 1% as well, 309 points. You take a look at the S&P 500 and you've got most names, almost 340 names higher in today's session, you've got 166 to the downside. And then there are rates. We are just below 5% on that 10-year note. Expectations, what the Fed's gonna increase rates next week, oil prices though came down. Oil prices came down, Brent crude down about 2.5%.

Analysis

U.S. stock indices showed resilience with the S&P 500 up nearly 1% and the Dow Jones gaining 1% as inflation data was released. Despite a mixed performance with 340 stocks rising and 166 falling, the market remains optimistic ahead of the Fed's anticipated rate hike next week.

The decline in oil prices, particularly Brent crude down 2.5%, signals potential easing in inflationary pressures, which could influence the Fed's decision-making. Smart money should consider the implications of these movements on sectors sensitive to interest rates and energy prices.

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