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13:57
PDT

Bucks prioritize winning over profits.

Josh Gillespie Milwaukee Bucks Giannis Miami Uline Jalen Brunson Nick Kenner Just Salad FDA AutoZone KB Home President of the United States PRIVATE FEDFUNDS

– New partnership with Uline for jersey patches.

– Just Salad's partnership with Brunson emphasizes brand integrity.

– Brunson's equity deal signifies a shift in athlete-brand relationships.

– Upcoming economic data includes Richmond Fed manufacturing and AutoZone earnings.

athlete endorsementsbrand partnershipsconsumer confidencemarket data

▸ Full transcript

Wash in a restaurant in a sink dedicated to washing produce. So I think in terms of quality control and safety, Just Salad is a leader in that in terms of produce. And Americans should feel very safe, whether it's from us or anyone else at this point. The FDA has said Americans should feel confident in eating produce again. And thankfully, it's a seasonal thing, cyclospora, and it's over. Joe Salad CEO Nick Kenner talking about his partnership with NBA superstar Jalen Brunson. Let's set you up for what to watch over the next 24 hours. A light calendar for the markets with some Richmond Fed manufacturing and business confidence data that you keep an eye on. AutoZone earnings coming before the bell. KB Home after the bell. But the President of the United States, he's actually in New York. He's going to address the United Nations General Assembly tomorrow at 10 a.m. Before that, well, he gets to meet the New York City Mayor, Zaran Mandami, a live shot right now of Crazy Mansion on the Upper East Side of Manhattan, where we're waiting for the arrival of President Trump. This is Bloomberg. Set yourself up for more episodes, right in front of the door. With European shares for your portfolio. JP Morgan Europe Equity Premium Income Active ETF. We are the home of Active ETFs. Start your search for JPE ETF. Your favorite game. Points for Bendy.

Analysis

Milwaukee Bucks president Josh Gillespie emphasized the team's commitment to winning, despite losing star player Giannis to Miami. The Bucks are focusing on a new partnership with Uline for jersey patches and a broadcast agreement to enhance visibility this season.

Nick Kenner, CEO of Just Salad, highlighted the integrity of NBA star Jalen Brunson in their partnership, which marks Brunson's first equity deal with a restaurant brand. This collaboration reflects a growing trend of athletes aligning with brands that share their values, potentially influencing consumer trust and loyalty.

13:55
PDT

Jalen Brunson's partnership with Just Salad marks a new trend in athlete endorsements.

Jalen Brunson Just Salad New York City

– The collaboration emphasizes shared values and integrity between the brand and the athlete.

– Brunson's rise to a global icon could enhance Just Salad's market presence.

– Athletes are increasingly seeking equity in brands rather than traditional endorsement deals.

– This partnership could lead to stronger customer loyalty for Just Salad.

athlete partnershipsbrand equity

▸ Full transcript

He never retreated. He always said he was going to stick by his word. His team did as well. They went silent during the playoffs because they were focused on basketball. I don't know too many other people that would win a championship, become that elevated, and not look to go back on their word and retreat. He did none of that. He's just a great guy. Oh, that's what I was going to ask you. I mean, to start these negotiations before the actual championship win and then sort of find yourself. I mean, did you have kind of a uh-oh moment the night they won, thinking, oh my gosh, this is going to cost us a lot more? I was, you know, I was so happy they won. I didn't even care. But yeah, the days after, I certainly questioned if it was going to continue to happen, given that he went from a New York City star to a global icon in some ways. But he's that type of person; he's high integrity, and his values genuinely align with Just Salad. Both brands are gritty, no frills, and I think just trying to get better every single day at what we do, and we're both head down, just trying to improve. How do you sort of reassure, though, customers going forward that when they walk into a Just Salad location, the fresh ingredients that are there have been properly sourced and properly handled? That's a great question. I mean, first of all,

Analysis

Jalen Brunson's partnership with Just Salad highlights the intersection of sports and brand equity, as the NBA star transitions from a local to a global icon. This collaboration reflects a growing trend where athletes leverage their fame for equity stakes in businesses, signaling a shift in athlete endorsements towards deeper partnerships.

The integrity and values shared between Brunson and Just Salad suggest a strategic alignment that could enhance brand loyalty and customer trust. As athletes become more involved in business ventures, the potential for increased consumer engagement and brand differentiation in competitive markets becomes significant.

13:49
PDT

Milwaukee Bucks prioritize winning over profit.

Milwaukee Bucks Giannis Antetokounmpo Uline Josh Gillespie New York Knicks Jalen Brunson JustSalad Bloomberg CEO Nick Kenner PRIVATE

– New partnership with Uline includes jersey patch deal.

– All Bucks games will be available on broadcast TV this year.

– Community engagement is a focus for the Bucks' strategy.

– The loss of Giannis is acknowledged but not seen as a setback.

sports partnershipscommunity engagementbroadcast media strategy

▸ Full transcript

So it's all different. What I can say is, I don't think there's a single owner that I've interacted with that has come into any of the leagues in the last 20 plus years who have come in saying explicitly we're here to make money. They're all here to win. We are one of 30 today that is dead set on doing everything we can to win a championship. And that's Josh Gillespie. He just took over as Milwaukee Bucks president earlier this year talking a little bit about losing the team's biggest star, Giannis down to Miami. But more importantly, as he looks ahead, talking a lot more about the new partnership with Uline, putting that patch on the jerseys as well as a new over-the-air broadcast agreement, at least for this year where all of the Milwaukee Bucks games will be available on broadcast television. All right, we do want to stay in the world of sports and talk about, well, New York Knicks and their biggest star, Jalen Brunson. Joining us with Nick Kenner, the founder and CEO of JustSalad. That conversation coming up after the break right here on Bloomberg. from the home of active ETFs.

Analysis

The Milwaukee Bucks are focusing on winning a championship despite losing star player Giannis Antetokounmpo to Miami, emphasizing their new partnership with Uline as a key strategic move. This partnership, which includes a jersey patch deal, reflects a shift towards local business engagement and community involvement, potentially enhancing brand loyalty among fans.

Smart money should note that the Bucks' strategy of leveraging local partnerships like Uline could create a competitive advantage in fan engagement and community support, which may translate into increased revenue streams. Additionally, the emphasis on a broadcast agreement for wider game accessibility could boost viewership and market presence, positioning the team favorably in the evolving sports media landscape.

13:47
PDT

Bucks partner with Uline for jersey branding.

Milwaukee Bucks Uline Yanis Bobby Portis NBA Dallas Cowboys LA New York Knicks Miami Heat Kareem Abdul

– Partnership aims to strengthen community engagement.

– Team strategy focuses on building competitiveness beyond star players.

– Recent player trades may influence team dynamics.

– NBA parity allows mid-market teams to compete effectively.

NBA dynamicslocal partnershipsteam competitiveness

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Sort of the mid-market type of teams that are, say, the New York Knicks or the LA Lakers, the Miami Heat. I mean, can you attract those big players and retain them? Because there are a lot of people trying to draw parallels with what's happening with Yanis and what happened way before. Both of us were around with Kareem Abdul-Jabbar when he brought the first championship to the Bucks and then after a few years decided to go to LA and win five more. What's the pull? What kind of pull do the Milwaukee Bucks have? You develop through trades, through free agencies, through the draft. The beauty of the NBA as it stands today is there's incredible parity. Eight or nine of the last NBA championships have been different. And you had, quote unquote, middle market teams like the Bucks and Denver competing for championships. It wasn't really until the Knicks were just able to do it where they were able to break through. So just being in a major market doesn't necessarily mean you automatically win a championship. And there are a number of different ways to do it. We had one way of doing it when we won the championship in 2021. And that's not to say that's going to be the same way of doing it the next time we win a championship, but the goal and the intent is to compete on the court and to build into the next era. As the economics of the sport changed so much that maybe you don't necessarily need a big singular star. Or even wins, I know you can't say that, but I mean, you look at sort of a team like, let's just take the Dallas Cowboys or something that, you know, haven't really had a champion.

Analysis

The Milwaukee Bucks are excited to announce a new partnership with Uline, which will feature their branding on the team's jerseys for all regular and playoff games. This partnership highlights the Bucks' strategy to engage with local businesses and enhance community ties, despite recent player trades that could impact team dynamics.

The Bucks' ability to attract and retain talent in a mid-market environment is noteworthy, especially as they navigate the changing economics of the NBA. The focus on building a competitive team without relying solely on star players indicates a shift in strategy that could redefine success in the league.

13:44
PDT

Bucks partner with Uline for jersey branding.

Milwaukee Bucks Uline Janice Bobby Portis Brayden Burry Tyler Hero Miami NBA Liz Uline Five Serve Forum

– Partnership aims to enhance community engagement.

– Recent player trades did not impact partnership negotiations.

– Uline has both B2B and B2C business models.

– Local partnerships may strengthen fan loyalty.

community engagementsports partnerships

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A partner, Velo, is a German-based company, but they have a large manufacturing presence in Wisconsin. When we think about employees and employee engagement, that's something that Liz Uline cares deeply about, being able to show up in the community together. Those local homegrown companies just give you a different platform to do that, and it's a great opportunity we have. Was there any discussion when you were negotiating this deal about the idea that you lost your biggest stars, Janice, in that June trade, as well as Bobby Portis? Did that affect the negotiations at all? No, I mean, listen, what Janice did for Milwaukee is incredible, and what Bobby Portis has done for Milwaukee is incredible. We're so grateful for the championship that they helped to bring to Milwaukee. The platform that the Milwaukee Bucks have locally, with the Five Serve Forum, which, you know, objectively is the best arena in the NBA, and the global platform that the NBA gives us is so much bigger than just one player. We're fortunate; we've got great young players. We drafted Brayden Burry, a native from Arizona and Tennessee respectively. We got some fantastic young blue-chip players back in the trade from Miami. You know, like me coming back home. I grew up in Racine, Wisconsin, just south of Milwaukee. We also get to bring Tyler Hero back home. You know, he's a Milwaukee kid who has the opportunity to come back. It was just one player. I mean, he was kind of the embodiment of the NBA.

Analysis

The Milwaukee Bucks announced a new partnership with Uline, a Wisconsin-based company, which will feature their branding on the team's jerseys for all regular and playoff games. This partnership is seen as a strategic move to strengthen community ties and enhance employee engagement, especially after recent player trades that have reshaped the team's roster.

Smart money should note that while Uline is primarily a B2B company, it also has a significant B2C presence, which could enhance fan engagement and brand visibility. The Bucks' ability to leverage local partnerships amidst roster changes may provide a competitive edge in maintaining community support and fan loyalty.

13:42
PDT

Bucks partner with Uline for jersey branding.

Milwaukee Bucks Uline Motorola Harley-Davidson East Bay Magazine

– Shift from consumer brands to B2B focus.

– Uline has a strong B2C presence alongside B2B.

– Partnership aims to enhance community ties.

– Potential for increased fan engagement.

partnership strategybrand visibilitycommunity engagement

▸ Full transcript

Continuing to show up on behalf of our employees, on behalf of within the community. These partnerships where you have a relationship, they're the best. We get a running start. We know exactly how to work together. We know how to communicate. We care deeply about their employees. We care deeply about our fans, as do they. My sister works at Uline. So the opportunity for us to elevate everything we're doing is incredible. I do have a bad shoe though. I mean, when I think about, I mean, your past partnership was with Motorola, a pretty well-known brand. You've had relationships with companies like Harley-Davidson. These are very consumer-focused brands. Uline is more B2B. So what's the appeal for, I guess, just the average fan that comes into that stadium? Why do they need to know what Uline is? Yeah, I'd say they have a massive business-to-business presence. But they've also got a really meaningful B2C business, as well. And they are the global leader in packaging, shipping, industrial materials, and packaging. I, as a consumer, leverage the 900-page magazine. Wisconsin is home to two of the great, great magazines of my lifetime. One, as a kid, the East Bay Magazine. You remember that? That's Wausau, Wisconsin. And now Uline, a different phase of my life, maybe less sneakers today for me, but I've got a home, and there's so much that Uline offers in the 900-page catalog. And this is more than just homegrown. I mean, this company is headquartered. You know, maybe I'd like it.

Analysis

The Milwaukee Bucks have announced a new partnership with Uline, which will feature their branding on the team's jerseys for all regular and playoff games. This partnership marks a shift from previous consumer-focused partnerships to a more B2B-oriented collaboration, highlighting Uline's significant presence in both business-to-business and business-to-consumer markets.

Smart money should note that Uline's extensive catalog and established reputation in packaging and shipping could enhance the Bucks' brand visibility among a broader audience. The partnership reflects a strategic move to leverage Uline's resources and community ties, potentially increasing fan engagement and loyalty through shared values and local connections.

13:40
PDT

Milwaukee Bucks partner with Uline for jersey sponsorship.

Milwaukee Bucks Uline

– Uline becomes the largest partner for the Bucks.

– Partnership includes branding on practice and summer league jerseys.

– Local partnerships can enhance community engagement.

– Increased visibility may drive merchandise sales.

sports sponsorshiplocal partnerships

▸ Full transcript

We couldn't be more excited. A month from today, we'll tip off the season on the road at Washington, and we're going to do that representing Wisconsin-based company Uline as our new jersey patch partner. So we're going to wear them for every regular season game, every playoff game, on our practice jersey, and on our summer league jerseys. They will become our biggest and largest partner, and we're incredibly excited.

Analysis

The Milwaukee Bucks have announced a partnership with Wisconsin-based company Uline, which will feature their logo on the team's jerseys for all regular season and playoff games. This partnership marks Uline as the Bucks' largest partner, indicating a significant branding opportunity for both entities.

Smart money should note that this partnership not only enhances Uline's visibility but also aligns the Bucks with a local company, potentially strengthening community ties and fan engagement. Such collaborations can lead to increased merchandise sales and fan loyalty, which are crucial for revenue growth in sports franchises.

13:39
PDT

Trust is essential for AI adoption in businesses.

Paula Goldman Salesforce Milwaukee Bucks Josh Glessing Bloomberg AI Harness Human PRIVATE GC=F

– AI systems must be designed to escalate issues when anomalies occur.

– Human judgment is crucial in complex AI interactions.

– Companies that build trust in AI may gain a competitive edge.

– Paula Goldman's insights highlight the evolving role of AI in customer service.

AI adoptiontrust in technologycustomer service innovation

▸ Full transcript

Companies that are using AI need it to work. They need it to work as designed. They need to know that it's going to escalate if there's an anomaly. They need to know that it's not going to talk about something that they've already said is off topic. Trust is central to adoption, and I think businesses have a real role to play in scaling that. All right, Paula Goldman there, executive over at Salesforce and the author of a new book called Manage the Machine: How to Harness Human AI Collaboration at Work. When we come back after the break, we're going to make a pivot, a hard pivot to sports and the Milwaukee Bucks announcing a new partnership today. It's going to give their jerseys a much different look. We're going to catch up with the president of the Bucks, Josh Glessing, when we come back after the break, right here on Bloomberg.

Analysis

Trust is central to the adoption of AI in businesses, as companies need to ensure that AI systems work as designed and can escalate issues when anomalies arise. Paula Goldman from Salesforce emphasizes the importance of designing AI systems that allow for human judgment in complex situations, rather than merely having humans approve AI outputs.

Smart money should note that the successful integration of AI hinges on building trust and ensuring that AI systems are reliable and responsive to anomalies. This focus on trust and human oversight could lead to a competitive advantage for companies that effectively harness AI while maintaining strong customer relationships.

13:36
PDT

Oil markets are experiencing downward pressure.

Marathon Petroleum President Trump President Xi Salesforce Paula Goldman Walmart Nike Sharp Ninja 1-800 Accountant AI Cold War

– Marathon Petroleum and other refiners are affected by geopolitical issues.

– The Trump-Xi meeting could significantly impact tariffs and energy policies.

– AI strategies are evolving, focusing on human oversight in decision-making.

– Companies are encouraged to design AI systems that enhance human judgment.

geopolitical riskAI ethicsenergy policy

▸ Full transcript

Sometimes people want to talk to AI. These are things that we're learning, and I think that's an important part of the process. But equally, people who are working and using AI have a lot of strong instincts on what it can unlock for them. And that's, I think, what the exciting part is about the moment that we're in. So there was this concept in the book. You called human at the helm, actually. You're not, but human in the loop. Sorry, I'm going, I'm getting there. You're not a fan of that phrase. Well, so human in the loop comes from the Cold War. And it was like all of a sudden we had technology that could detect an inbound missile. Who should decide what to do with that information? How do you make sure that a person makes the consequential decision? Kinda got flattened, we start, we think human loop, it's like, well the AI drafts something and then I'm gonna approve the email and send it. But in a world of AI agents, that kinda defeats the point. You can't have a person looking at every data point that the AI agent is working on. I mean this was sort of the core of the hugging phase issue and some of the other sort of, you know, gone rogue if you will. It's the idea that the human cells to sort of be in the loop, they either weren't there or there was just too much information for them to even keep up. Well what we say is that we need to design systems that we call the principle human at the helm where you can delegate really complex tasks to AI, but when there's an anomaly, when there's something that requires judgment, a new circumstance, a relationship that needs to be strengthened, that people are deliberately brought in.

Analysis

Geopolitical tensions are impacting oil markets, leading to declines in stocks like Marathon Petroleum. The upcoming meeting between President Trump and President Xi is expected to influence tariffs and energy policies, while AI adoption strategies are being scrutinized for their ethical implications.

13:34
PDT

AI is transforming customer service but requires careful integration with human judgment.

Salesforce 1-800 Accountant Walmart Nike Sharp Ninja Paula Goldman Sheila Galati Bloomberg AI

– Companies must identify when to switch from AI to human agents for complex inquiries.

– Building trust with customers is essential for long-term relationships.

– Successful AI strategies focus on collaboration between humans and machines.

– Regulatory considerations are critical in financial advice scenarios.

AI integrationCustomer serviceHuman-AI collaborationRegulatory challenges

▸ Full transcript

Businesses to get the right results, but it's not all of it. Like, I talked to salespeople who are using AI. They're super happy to not have to hear no on cold calls anymore and to be able to concentrate on building trust with their customers that helps them reinterpret their problems. Those relationships, that judgment, the creativity, that is what AI use well helps unlock for people. Well, let's talk about the judgment aspect and exactly what does human judgment look like in a world of, I guess, AI intelligence? Well, I'll tell you. One of the most robust use cases for AI right now is in customer service, right? But one of the most important questions that companies using AI for customer service need to ask is when to stop using AI? That is to say, we have a customer, 1-800 Accountant. They do financial advice for small businesses. And if someone calls in and says, is my tax return filed? Great use case for an AI agent. Someone starts asking for tax advice or financial advice. Not only is that a regulated use case that requires a person, but also it's a chance to deepen the relationship to really give solid guidance that then makes a better customer relationship. Well, give me, I mean, the book you give a couple examples with Walmart, Nike, Sharp Ninja, a couple of them probably forgetting. But is the idea that this is gonna be about what the customer really wants or the client wants from there.

Analysis

The discussion highlights the importance of human judgment in AI applications, particularly in customer service, where knowing when to transition from AI to human interaction can enhance customer relationships. Companies like 1-800 Accountant exemplify the need for a balance between AI efficiency and human expertise to provide solid guidance and deepen client trust.

Smart money should note that while AI can streamline operations, the most successful implementations will focus on enhancing human capabilities rather than replacing them. This approach not only improves customer satisfaction but also positions companies to navigate regulatory challenges effectively.

13:32
PDT

Paula Goldman advocates for a collaborative approach to AI integration.

Paula Goldman Salesforce Tola Capital AI Tola Capital Founder Chief Ethical Humane Use Officer Harness Human GC=F

– Companies achieving the best AI results focus on human-AI collaboration.

– The narrative around AI is shifting from job loss to effective integration.

– Ethical AI practices may provide a competitive advantage.

– The conversation on AI's impact is becoming more nuanced.

AI collaborationEthical AIJob displacement

▸ Full transcript

Pacing that is paced with our ability to secure the technology that we're delivering out to individuals and companies is a smart way to think about pacing. That's often what people are talking about. Tola Capital Founder, she looked a lot of you on the program in the last hour discussing her concerns over AI adoption. Of course, this comes after a week full of warnings by leaders at top AI labs across the country. Joining us now to talk a little bit more on how companies can adjust their AI strategies is Paula Goldman, the first-ever Chief Ethical and Humane Use Officer at Salesforce and the author of a new book called Manage the Machine: How to Harness Human-AI Collaboration at Work. Paula, great to have you here. Thanks for having me. Can the machine be managed? I argue yes, absolutely. What's interesting is obviously there's no shortage of commentary about AI. It is moving very, very fast. But what's interesting, having worked across now thousands of companies large and small, is that the companies that are getting the best results from AI are not just thinking about the power of the model; they're thinking about how they design how people and AI work together to get the best outcomes. That's really what the book is about: how do you design that so that people can do bigger, better things and get trustworthy results? I mean, give me a sense though because I mean we talk about this existential threat of AI. I mean, I feel like for a while the conversation was always about, oh, it's gonna take my job, take this, but ultimately the existential sort of question is about this idea of what does this make you.

Analysis

Paula Goldman, Salesforce's Chief Ethical and Humane Use Officer, emphasizes the importance of designing AI strategies that foster collaboration between humans and machines for optimal outcomes. Companies that focus on this collaborative design are achieving better results, highlighting a shift in the conversation around AI from job displacement to effective integration.

The ongoing discourse around AI's existential threat is evolving, with a growing recognition that successful AI implementation hinges on human-AI collaboration rather than mere technological advancement. This insight suggests that firms prioritizing ethical AI practices may gain a competitive edge in the market.

13:28
PDT

Oil markets are experiencing downward pressure.

Marathon Petroleum President Trump President Xi Salesforce Paula Goldman United Nations General Assembly AI White House New York Scott Besant United States Chief Ethical DXY PRIVATE CL=F GC=F

– Marathon Petroleum and other refiners are seeing stock declines.

– The Trump-Xi meeting is pivotal for tariffs and energy outlook.

– Current yields are down, providing some relief for equities.

– AI ethics is becoming a significant corporate focus.

geopolitical riskenergy market dynamicsAI ethics

▸ Full transcript

Geopolitical issues are affecting the market, leading to a downturn in oil markets today. One reason for this is that Marathon Petroleum and some other refiners have taken a leg down. The big meeting between President Trump and President Xi at the White House on Thursday will be a significant determinant, not only for the tariff picture but also for the energy picture and the AI picture itself. For now, yields are down, the dollar is in check, and equities are getting a little bit of breathing room, allowing some investors to move forward. We will keep an eye on this story throughout the week, with many interviews coming up from the United Nations General Assembly taking place here in New York, down to Washington. The meetings between Scott Besant and his counterparts, as well as the president of the United States and his counterpart, will be crucial. The corporate calendar is light, but heavy on geopolitics and macro issues. When we come back, we will refocus on AI and corporate stories, and we will catch up with Salesforce's Chief Ethical and Humane Youth Officer, Paula Goldman, who has a new book out. We were discussing earlier with Sheila Galati the idea of how to make the AI revolution a little more humane. That conversation is coming up after the break right here on Bloomberg.

Analysis

Geopolitical tensions are impacting oil markets, with a notable decline in stocks like Marathon Petroleum ahead of the critical meeting between President Trump and President Xi. The outcomes of this meeting will significantly influence tariffs, energy prices, and the AI sector, while current market conditions show yields down and equities gaining some ground.

Smart money should note that while the corporate calendar is light, geopolitical developments are heavy, suggesting potential volatility. The focus on AI ethics, as highlighted by Salesforce's Paula Goldman, indicates a growing concern for humane technology amidst rapid advancements, which could shape future corporate strategies and investor sentiment.

13:26
PDT

S&P 500 rallied significantly today.

S&P 500 Washington, D.C.Bloomberg US China AI Trust Bloomberg PRIVATE S&P 500 DXY

– Leaders from the US and China will meet to discuss trade.

– Geopolitical stability is a key focus for global trade.

– Market sentiment is bullish ahead of the summit.

– Potential for increased volatility based on summit outcomes.

geopolitical risktrade dynamics

▸ Full transcript

Some see heroes. Others only egos. We see the era of billionaire athletes. A fad to some. The future of money to others. We see crypto's trillion dollar swings. The end of jobs. Or the end of human struggle. We see the endless funds fueling the AI hype. While others follow the noise, we follow the money. This week, leaders from the world's two largest economies will come together in Washington, D.C. with geopolitical stability and the future of global trade on the line. If we talk to the president, he'll say about a lot of different things. More than anything else will be trade. Trust Bloomberg to go beyond the headlines with on-the-ground reporting, expert analysis, and real-time market reaction, leading up to the summit on September 24th. Special coverage all week right here on Bloomberg. All right, we want to take a closer look here at how we actually started this week the full last full trading week for the month of September a big rally in the S&P 500 today.

Analysis

The S&P 500 experienced a significant rally today, signaling strong market sentiment as leaders from the world's two largest economies prepare for a crucial summit in Washington, D.C. The focus on trade discussions highlights the ongoing geopolitical tensions and their potential impact on global markets.

Smart money should note that the upcoming summit on September 24th could lead to pivotal trade agreements or tensions that may influence market volatility. The emphasis on trade as a primary topic suggests that any outcomes could have immediate repercussions on sectors sensitive to international trade dynamics.

13:24
PDT

Port of Long Beach aims to double cargo volumes by 2050.

Port of Long Beach China Vietnam Trump administration PRS CEO New York Nick Kenner

– Current ratio of imports to exports has shifted to 5:1 due to tariffs.

– Shipping lines expect continued busy months ahead.

– Investment in infrastructure is crucial for accommodating larger ships.

– Plans include automation and sustainability initiatives.

supply chain riskinfrastructure investment

▸ Full transcript

Er ist der größte Name in der Schweiz. Und T-Zer, er ist der Herr von New York. Wir werden mit CEO Nick Kenner über das Gespräch sprechen. Was ist auf der Mane, wenn wir nach dem Brief kommen? Hier, auf Blumberg.

Analysis

The Port of Long Beach is preparing to double its cargo volumes to 20 million containers by 2050, driven by growth in the U.S. market and the need for enhanced infrastructure. The port authority emphasizes the importance of reliability and predictability in trade amidst ongoing geopolitical and economic uncertainties.

Smart money should note the shift in shipping patterns, with a significant increase in empty containers indicating a changing landscape in global trade dynamics. The port's strategy to densify and modernize operations, including the development of a zero-emissions terminal, reflects a proactive approach to future demands and sustainability.

13:22
PDT

Port of Long Beach aims for 20 million TEUs by 2050.

Port of Long Beach Noel Hasagaba China Vietnam Trump administration PRS

– Investment focuses on densification, electrification, and modernization.

– Labor relations will impact automation strategies.

– Geopolitical factors are reshaping global shipping routes.

– Tariff-driven front loading is affecting container volumes.

infrastructure investmentautomation in portsgeopolitical trade dynamics

▸ Full transcript

You go, maybe we can't go through Panama. Maybe we can go through the Suez. Maybe we, I don't know, maybe if we get enough melting ice that people just go up through the Arctic. I mean, these are things that people have talked about. And then with energy, you have pipelines and other things. How do you factor that into your long-term forecasts? Yeah, I mean, cargo follows the path of least resistance. The shippers will always look for the fastest, most efficient way to get their cargo from point A to point B. And this is why we're investing so aggressively in our port. We believe that the infrastructure that we're going to be delivering by 2050 is going to offer that value, the velocity, reliability, and the sustainability that our customers desire. I am curious though, but 20 million by 2050, when I hear that, I also think you've got to also have a lot more automation to make that work. I mean, isn't that just kind of the reality of how this works? Yeah, so our plan is very simple. We're not going to double our real estate. It would take too long, it would be too expensive. So how we're going to get to 20 million TEUs by 2050 is we're going to densify, electrify and modernize. Now, it doesn't mean that it's all going to be automation. For example, we're developing a project at PRS, and we're looking at developing the world's first human-operated zero emissions container terminal that will primarily service express services. So we are constantly looking for new models to deliver infrastructure. They check off multiple boxes at one time. I do have to, our relations right now with the labor unions, because this is obviously, they're going to have a say to some extent or another as you do this build out. They're going to want to project their jobs and the human capacity at these ports.

Analysis

The Port of Long Beach is aggressively investing in infrastructure to handle a projected increase to 20 million TEUs by 2050, emphasizing the need for velocity, reliability, and sustainability. The port's strategy includes densifying, electrifying, and modernizing operations, while also navigating complex labor relations as automation becomes integral to future growth.

Smart money should note that the shift towards automation and sustainability at the Port of Long Beach could set a precedent for other ports, potentially reshaping global shipping dynamics. Additionally, the ongoing geopolitical tensions and trade policies will continue to influence shipping routes and costs, making adaptability crucial for port operations.

13:19
PDT

Port of Long Beach expects busy shipping months ahead.

Port of Long Beach Noel Hasagaba Trump administration China Vietnam Panama Canal US Long Beach

– Shift in import-export ratios signals structural trade changes.

– Expansion plans target increased capacity and reliability.

– Policy support is crucial for sustaining port growth.

– Trade dynamics influenced by upcoming U.S.-China meetings.

supply chain risktrade policyinfrastructure investment

▸ Full transcript

All for an extension of this moratorium? Has there been any efforts to try to press the Trump administration to hold the line? Well, part of our job as a major gateway and a major infrastructure is to make sure that our policymakers are educated on what's happening on the ground and what the results are of different changes in policy. We're not necessarily there to lobby as much as educate, making sure that the administration has all the information, all the data they need to make decisions. Do you want an exemption for Long Beach given its importance? Well, the Port of Long Beach is the nation's second busiest seaport. We are a US commercial strategic seaport. We are a reliable gateway for the nation. And it's important for us in order to continue to deliver that value to our customers, to have policy that enables that growth. With regards to just the container rates overall, are you anticipating that we will see additional increases, whether this extension actually comes or not on the trade truce? What we're hearing from the shipping lines and the shippers is that the next two to three months will continue to be as busy. In fact, we're looking at a very solid September and we expect that October is going to be another busy month. What happens after that will largely depend on what comes out of the meetings later this month. I do want to ask you about your expansion in the twenty twenty fifty and just the economics of building out peer B and just the cost involved. Are all the costs, are all the money there to cover the cost in some commitment or another?

Analysis

The Port of Long Beach anticipates continued strong shipping activity in the coming months, driven by current trade dynamics and potential policy changes from the Trump administration. The port's CEO emphasizes the importance of reliable infrastructure and policy support to sustain growth amid shifting global trade conditions.

Smart money should note that the ratio of imports to exports has shifted significantly, indicating a potential structural change in global trade patterns. The port's expansion plans aim to accommodate larger vessels and increased cargo volumes, reflecting confidence in the U.S. market's growth despite geopolitical uncertainties.

13:17
PDT

Novo shares down 8% amid investor disappointment.

Novo Eli Lilly Port of Long Beach Noel Hasagaba China United States President Xi Jinping President Trump Southeast Asia Long Beach USDCNH

– Port of Long Beach aims for 20 million containers by 2050.

– Shift in global trade dynamics affecting shipping schedules.

– Increased focus on infrastructure and reliability at ports.

– Tariff-driven front loading impacting container volumes.

supply chain riskU.S.-China trade relationsport infrastructure growth

▸ Full transcript

The value proposition because when cargo comes from Southeast Asia versus China, it has two to three days on the water. This is why we have big plans for the future; this is why we're expanding our capacity to offer more reliability and even greater value to the customers. Well, your long-term plans, your long-term forecast is something like 20 million containers right by 2050. That's right; our plan is to double our cargo volumes to 20 million container units by 2050. That's not a lot of time to prepare for that, and this is why I'm adopting a hurry-up offense to make sure that we deliver the infrastructure, the technology, and the process improvements that we need to continue to be a reliable port of choice. I mean, just talk to me about that growth though. I mean, that's something like a 3% annual compound growth rate, which is pretty fast for a port of any size, but certainly one of Long Beach's size. What gives you the confidence you can do that? Well, we're very bullish on the future. When you talk to the shipping lines and the shippers, the U.S. market is one that will continue to grow. The U.S. population continues to grow. What we need to do is ensure that we deliver the infrastructure so that the shippers and the shipping lines know where they can send their bigger ships. I mean, the whole industry has changed. Ships have gotten bigger. They need more capacity; they need velocity, reliability. The infrastructure that we're going to be developing between now and 2050 is going to deliver all of that. With regards to that 20 million by 2050, do you anticipate that China would be less than 50% of that, or do you think it might hold around the current levels? Possible. Again, the shippers are in the process of redesigning their supply chains.

Analysis

Novo shares fell approximately eight percent as investors expressed disappointment over the lack of concrete turnaround plans from the CEO, particularly after losing ground in the obesity market to Eli Lilly. The Port of Long Beach is planning to double its cargo volumes to 20 million containers by 2050, driven by growth in the U.S. market and the need for enhanced infrastructure to accommodate larger ships.

13:15
PDT

CF Industries down 3.5% due to Belarus potash deal news.

CF Industries UPS Bank of America Eli Lilly Novo Amazon China Vietnam Port of Long Beach Noel Hasagaba President Trump President Xi Jinping USDCNH

– UPS shares fell 4.4% after Bank of America cut price target and earnings estimates.

– Empty container shipments increased, indicating trade imbalance.

– Shippers are managing uncertainty in supply chains.

– Potential shifts in shipping routes and costs expected.

supply chain riskgeopolitical tensionstrade imbalances

▸ Full transcript

Advancing their shipments. They're employing a lot of different strategies to ensure that they can mitigate as much risk as they can. Well, when we talk about what they're trying to do, how do you plan for that? I mean, ultimately, your job isn't really a day-to-day job. At least I wouldn't think so. It's more about the longer terms. How do you sort of thread that needle? Well, as a port authority, we sit at the intersection of trade, geopolitics, climate technology. Everything that happens around the globe eventually affects our operation. Our job is to make sure that we offer reliability, we offer predictability and we keep that cargo moving because it supports nearly three million jobs across the United States. I do have to ask you though, I mean of those 920,000 containers, there was a big chunk of them, more than 300,000 that were empty. What does that say about global trade right now? It's not unusual although we have seen the ratio between imports and exports go from 4 to 1 to 5 to 1 and that's all the result of all the tariffs that were announced and the retaliatory tariffs. So right now the shippers are trying to manage uncertainty, the timing of shipments, where they source their product and how they get the product to the United States market is important. With regards to the share of ships that you're getting from China, I know the official numbers show that slightly lower than you've seen an uptick from other places like Vietnam. Do you have a sense here as to the stuff that's coming from some of the Asian, non-China, Asian nations? Is that still just Chinese goods that have been rerouted through Vietnam and other places? Remain just to give you some numbers in 2019 and China alone accounted for about 70.

Analysis

Fertilizer stocks, particularly CF Industries, fell 3.5% following news of a potential Belarus potash deal, despite analysts suggesting limited impact. UPS shares dropped 4.4% after Bank of America lowered its price target and earnings estimates, citing a decline in domestic volumes driven by reduced Amazon shipments.

The increase in empty container shipments indicates a growing imbalance in global trade, with the import-export ratio worsening due to tariffs. Shippers are now focused on managing uncertainty in their supply chains, which could lead to further shifts in shipping routes and costs as geopolitical tensions evolve.

13:13
PDT

Global trade is facing structural shifts due to geopolitical and environmental factors.

Port of Long Beach Noel Hasagaba China President Trump President Xi Jinping shipping nations CEO White House China President Xi Jinping The Port Long Beach Panama Canal USDCNH META

– Shipping routes and fees may change as the U.S.-China trade truce nears expiration.

– The Port of Long Beach reported record container handling, but this is influenced by temporary factors.

– Tariff-driven front loading is distorting traditional trade metrics.

– Analysts should prepare for increased volatility in shipping and logistics.

supply chain risktrade policy

▸ Full transcript

And that does bring us to our top story for the hour. And that is, well, the flow of goods across the country and more importantly, across the world. For generations running a major commercial port, largely a question of cranes, berths, rail lines, capacity. Today, it's also a question of tariff schedules, diplomatic communiques, and battlefield maps. The armed conflicts, trade wars, extreme weather, all these events, they're not one-offs anymore, but signs of a structural shift for global trade, at least according to a warning this month from 18 of the most important shipping nations. The result is not simply more trade or less trade. It's trade arriving at the wrong time, carriers reshuffling ships and routes, warehouses filling early in volumes, maybe dropping once those deadlines pass. And what comes next may be shaped by the White House this week. China President Xi Jinping meeting with President Trump amid a trade truce that actually expires in seven weeks. And with that expiration, you could see a bump in shipping fees. You could see alterations to shipping routes again. So how does a port that has the plan on a decades-long horizon deal with global conditions that seem to be shifting on months-long timetables? The Port of Long Beach case study. It handled 900,000 plus containers in August or record for that summer month, but much of that strength came from tariff-driven front loading and restrictions over at the Panama Canal. So even a record month now comes with an asterisk. Joining us now to talk about that is the Port of Long Beach CEO Noel Hasagaba. Great to see you here in studio too. Happy to be here, Romain. Thanks for having me. Noel, you're-

Analysis

The global trade landscape is undergoing a structural shift, influenced by armed conflicts, trade wars, and extreme weather, as highlighted by a warning from 18 major shipping nations. This shift is causing trade to arrive at unpredictable times, leading to adjustments in shipping routes and potential increases in shipping fees as a trade truce between the U.S. and China nears expiration.

The Port of Long Beach's record container handling in August was driven by tariff-induced front loading, indicating that even strong performance metrics may be misleading. Smart money should note that the upcoming expiration of the trade truce could exacerbate shipping volatility, impacting logistics and supply chain strategies significantly.

13:05
PDT

CF Industries and other fertilizer stocks are reacting negatively to geopolitical developments.

CF Industries UPS Bank of America Amazon Belarus U.S.CF S&P 500 AMZN

– UPS faces long-term volume challenges as Amazon expands its logistics capabilities.

– Analyst downgrades can significantly impact stock prices, especially in sectors facing structural changes.

– Market sentiment is cautious as companies adjust to evolving supply chain dynamics.

geopolitical risklogistics challengesanalyst sentiment

▸ Full transcript

Yeah. Wow. Well, it was a day for gainers. I did manage to get some decliners. I do want to start with fertilizer stocks. They fell today as the president is working on a Belarus potash deal. CF Industries, down 3.5 percent, the owner of nitrogen fertilizer, ammonia, urea, and more processing facilities and companies. U.S. and Canadian fertilizer stocks took a hit after the president said in a post on social media that the U.S. is working on this deal with Belarus. Even analysts say that a deal would have limited impact; still, that didn't stop some of these stocks from moving lower. CF Industries was not the biggest decline in the S&P 500 on this, but among them in today's session down 3.5%. Also, shares of UPS were under pressure today. This after an analyst over at B of A lowered his price target on the stock. Shares fell today by 4.4%. The 2026 and third-quarter revenue estimates from Bank of America for the company are a concern. He also cut his 2026 earnings per share estimates. And this is what's notable to me. The analyst said that the cuts were driven mainly by a sharper reduction in UPS's domestic volumes in the second half of 2026, given the large decline in Amazon volumes. Romain, I know you talk to UPS executives a lot. This has been on the wall for years. Like we've known about Amazon doing its own last mile and its own logistics. So what's the surprise? Well, I was, yeah, when I saw when these stocks were falling today, I was kind of confused by that as well. Some of this though does seem to be tied to that, remember this trade truce that we're in, I put truce loosely in quotation.

Analysis

Fertilizer stocks, particularly CF Industries, fell 3.5% following news of a potential U.S. deal with Belarus regarding potash. UPS shares dropped 4.4% after a Bank of America analyst cut revenue and earnings estimates due to declining domestic volumes, particularly from Amazon.

13:03
PDT

Warner Brothers Discovery up nearly 11% on merger news.

Warner Brothers Discovery Paramount CRML Trump Denmark Greenland Meta Intel So Warner Brothers Discovery Warner Brothers President Trump Arctic Island META CRML

– Paramount shares fell about 3% amid competitive pressures.

– CRML stock surged up to 43% due to geopolitical developments.

– 31% of CRML's float is short, indicating potential for further volatility.

– Meta and Intel also saw significant gains, up 11% and 12% respectively.

merger activitygeopolitical riskcritical minerals

▸ Full transcript

Blocked the deal over its planned acquisition of Warner Brothers Discovery. So it looks like a big move ahead here, the agreement paving the way for one of the largest mergers in Hollywood history. So Warner Brothers Discovery is up almost 11%. I will say Paramount was a little bit higher earlier in the session, but it's finishing the day down about 3%. Carol, wait, did you pick a stock that was only up a little bit when we have Meta up 11% and Intel up 12%? Hey, hey, I'm gonna get there. Sorry, sorry, I didn't, I front ran. I front-run Romain, I front-run you, I'm struggling. Kind of, kind of. I mean, I don't know that I gave our producer Meta, but that's okay. I'm gonna bring it into the discussion. All right, so Warner Brothers up about 11%, so Paramount a little bit lower. Let's go to critical metals. CRML is the ticker. Share soaring is high as 43%, the most intraday in nearly a year. President Trump coming out, saying he reached an agreement with Denmark over Greenland that would give the U.S. permanent control over security of the Arctic Island and that this deal addressed U.S. concerns over the territory. So we did see this name, which plays into the space when it comes to critical minerals and metals, as you know, soaring at the close about 38% to the upside. Keep in mind, 31% of the float is short. Stock is just up about 30% year to date, even with that big bump to the upside. So these names we know move up and down a lot. Meta, Bailey, you mentioned it. Yes, it was up a lot. And sorry, guys. Meredith, I didn't give you this name and I probably should have, but I.

Analysis

Warner Brothers Discovery shares surged nearly 11% following a significant merger agreement, marking a pivotal moment in Hollywood's consolidation landscape. In contrast, Paramount's stock dipped about 3%, highlighting the competitive dynamics within the media sector.

The critical metals sector saw a notable spike, with CRML shares soaring as much as 43% intraday, driven by geopolitical developments regarding U.S. control over Greenland. This volatility underscores the potential for significant price movements in stocks tied to critical minerals, especially given the high short interest in the market.

12:58
PDT

The bond market is experiencing pressure with a flat yield curve.

Jeff Sherman DoubleLine Capital Jeff Gunlack Bloomberg SpaceX Oracle Paramount MAG7 LBO Jeff Resherman Line Capital Romain Voss S&P NASDAQ 100 PRIVATE META GOOGL

– The front end of the yield curve is seen as attractive for investment.

– Skepticism exists regarding the Treasury Secretary's ability to control yields effectively.

– Selective investment in hyperscalers is crucial due to varying debt loads.

– AI sector spending is projected between $900 billion and $1.4 trillion.

bond market dynamicsAI investment trends

▸ Full transcript

Talking about the opportunity set are essentially your kind of Alphabets, the Metas, the things that have other business lines that can drive that. But when I look at like a SpaceX or I look at some of the more stressed names like the Oracles, even this LBO with Paramount, they're really borrowing like their investment-grade companies. But the process, the progress is probably to blow investment-grade name just given those debt loads. So we're avoiding that. So it's not a wholesale wanting to buy the hyperscalers. It's been very selective and making sure that you're not on that asset-liability mismatch of your bond on that data center. Jeff, always a pleasure. Jeff Resherman, deputy chief investment officer over at DoubleLine Capital, counting us down to the closing bells here on this Monday afternoon with the majority of the stocks in the green pushing the S&P up about one and a half percent. The NASDAQ 100 up about 3% here on the day. We should point out though a lot of the cyclical names and some of the more economically sensitive names sitting this one out as a lot of those geopolitical and macro risks still loom. A full breakdown of all of today's market action from stocks to bonds and everything in between that starts now. The closing bell, Bloomberg's comprehensive cross-platform coverage of the U.S. market close starts right now. And right now we are two minutes away from the end of the trading day. Romain Voss to cure with Bailey Lipshelves taking you through to that closing bell. It's a global simulcast. Massar and Tim Senevic, join us again. Welcome to our audiences across all of our Bloomberg.

Analysis

The bond market remains under pressure with a flat yield curve, as investors are cautious about the potential for intervention from the Treasury Secretary. While the front end of the curve offers attractive opportunities, the market remains skeptical about the effectiveness of any yield curve control measures proposed by the government.

Smart money should note the selective approach to investing in hyperscalers, as companies like SpaceX and Oracle face significant debt loads that could hinder their investment-grade status. The ongoing issuance of bonds and stocks by these firms indicates a competitive landscape, particularly in the AI sector, which could impact pricing and supply dynamics in the market.

12:56
PDT

AI spending estimates for next year range from $900 billion to $1.4 trillion.

Treasury Secretary MAG7 Bailey AI Wall Street DXY

– Increased issuance from hyperscalers is expected as they finance AI initiatives.

– Shorter-dated bonds from major tech firms are becoming more attractive.

– Yields on these bonds have risen 20 to 30 basis points from previous lows.

– Market digestion of new supply may lead to volatility.

AI investmentbond market dynamics

▸ Full transcript

What are you looking at in terms of some of the financing targets that have been rolled out from a number of hyperscalers or some of these companies heavily exposed or outright building these data centers? Yeah, and that's the competition that the Treasury Secretary has, right? If you look at the estimates for what the spend is next year on AI, the estimates on the street are starting between $900 billion and $1.4 trillion. I mean, that's a half a trillion dollar difference across those estimates. And so we know that there's going to be more issuance. You've seen that this year, Bailey, when you look at what's happened within the hyperscalers in the last couple of months, as they've continued to issue there, you also see some that are issuing stock, as well, especially in the high yield area. We've seen some equity issuance off that because the yields are getting a bit higher for especially those lower quality names. And so I think these mega hyperscalers, the MAG7 types that we all talk about, the bonds are becoming much more attractive because again, they have other businesses that will finance that AI trade. So all in all, it's going to continue to put pressure. And I think that's what you're seeing from the bond markets. It's the indigestion of how we take all this supply that's coming. But remember Wall Street is smart, the government, you know, it is the government. But at the end of it, what will happen is the pricing will slow the pace down. And so so far, I think what you see is those hyperscalers are especially on the shorter dated paper look pretty attractive now because we're getting, you know, yields there 20, 30 basis points higher than they were at the tights rather than the year. And so it's not some magical trade, but what it really does is you can.

Analysis

The estimates for AI spending next year range from $900 billion to $1.4 trillion, indicating significant upcoming issuance from hyperscalers. The bond market is reacting to this supply influx, making shorter-dated bonds from major tech firms increasingly attractive as yields rise 20 to 30 basis points from previous lows.

Smart money should note that while the government may struggle to manage this supply effectively, the attractiveness of shorter-dated bonds from hyperscalers could provide a strategic entry point. The competition for financing in the AI sector is heating up, and investors should be prepared for potential volatility as the market digests this new issuance.

12:54
PDT

Bond market intervention viewed as ineffective without significant policy changes.

Treasury Secretary bond market FEDFUNDS

– Current yield curve is flattening, indicating market skepticism.

– Investors are concerned about inflation and economic stability.

– Treasury Secretary's credibility is under scrutiny in the bond market.

– Potential for increased volatility in bond yields.

bond market interventionyield curve controlinflation concerns

▸ Full transcript

The bond market continues to stay intact until we get some semblance of inflation really coming down near the Fed's target. The flip side of that argument regards the potential for the curve to change a little bit, and some of the efforts that the Treasury Secretary has been trying to make to tamp down yields, along with the pushback that at least certain folks in the bond market are trying to mount. Intervention is usually not a good strategy; it works over very short periods, and then the market will focus on the root of the problems. If the Treasury Secretary is serious about getting the back end of the curve under control, they need to bring out the bazooka, as we've said before, with different policies. Maybe it's just setting the plumbing up to ensure that everything's in place, and one day they will do some big maneuvering there. Effectively, what they're trying to do is yield curve control. You can call it a twist; you're buying the back end and issuing T-bills to finance that. That should inherently flatten the curve, which is what the market is signaling today. I think the Treasury Secretary's efforts are really futile. If you want to get this under control and intervene, it needs to be in meaningful size. The bond market doesn't believe the Treasury Secretary right now. If you look at where the long bond trades right now, it trades where the cycle's highs were back in '23. Since we broke through that level in the last two months or so, it's really been gravitating there.

Analysis

The bond market remains skeptical of the Treasury Secretary's efforts to control yields, with intervention strategies seen as ineffective without substantial action. The current yield curve is flattening, indicating market concerns about inflation and economic stability.

Smart money should note that the bond market's lack of confidence in the Treasury's ability to manage yields could lead to increased volatility. The flattening curve suggests that investors are wary of future economic conditions, which may impact asset allocation strategies.

12:52
PDT

Bloomberg US aggregate bond index down 1.5% YTD.

Jeff Sherman DoubleLine Capital Bloomberg CIO US New York Line Capital Jeff Gunlack DXY PRIVATE

– Front end of the yield curve remains attractive for investment.

– Flattening curve indicates caution in intermediate bond investments.

– Geopolitical issues and fiscal concerns are resurfacing.

– Investors should focus on selective buying opportunities.

bond market dynamicsyield curve analysisgeopolitical risks

▸ Full transcript

Elevated hero on the day with a closer eye on the dollar and yen combination. A big part of the story, particularly heading into a lot of the high-level meetings taking place this week in New York, the macro, and of course, a lot of the fiscal and geopolitical issues are going to be back at the forefront. Whether investors are going to care well remains to be seen. Jeff Sherman is deputy CIO over at DoubleLine Capital and portfolio manager of DoubleLine's flexible income fund with Jeff Gunlack. Jeff, I do want to start off here with this idea. Not so much of where yields go next, but this idea that still at these elevated levels, still with the concerns that pushed them to those elevated levels. Are you seeing that as an opportunity to buy in and trade or is that more of an opportunity to move to the sidelines? Well, I don't think it's time to move to the sidelines here. I mean, we've felt a lot of the pain in the bond market. You see things like the Bloomberg US aggregate being down for the year right now down about roughly a percent and a half, a little bit better after today. But the challenge really is, is the shape of the curve once again. And we have a very flat curve. The curve's been flattening ever since the Iran-Klanflex started. And you notice that pressure on the front end. And so I'm going with that remain is really the front end continues to be super attractive to us at DoubleLine. When you talk about a 210 spread that's in the, you know, called 25 to 30 basis point range, it's not enough to really excite people to go out into that intermediate part of the curve. But the front end is still offering a lot of value. So what we've been doing is just continuing to pound that part of the trade. We're very much.

Analysis

The bond market remains under pressure, with the Bloomberg US aggregate down approximately 1.5% for the year. Jeff Sherman from DoubleLine Capital highlights the attractiveness of the front end of the yield curve despite a flat curve, suggesting opportunities for investors to capitalize on current valuations.

Smart money should note that while the front end offers value, the flattening curve indicates a cautious approach to intermediate bonds. This environment may lead to selective buying opportunities, particularly in the short-term segment, as investors navigate macroeconomic uncertainties and geopolitical tensions.

12:50
PDT

Paramount and Warner Brothers merger clears regulatory hurdles.

Paramount Warner Brothers California David Ellison Bloomberg Jeffrey Sherman DoubleLine Capital AI Wall Street Week DXY

– Deal valued at $110 billion with conditions for movie production.

– Potential job losses estimated at 15,000 due to the merger.

– Concerns over maintaining quality while increasing production.

– $6 billion in synergies raises questions about realization.

merger activitymedia landscapejob market impactsynergies realization

▸ Full transcript

The future of money to others. We see cryptos trillion-dollar swings. The end of jobs. Or the end of human struggle. We see the endless funds fueling the AI hype. While others follow the noise, we follow the money. Let me each week on Wall Street Week for stories of capitalism from business, markets, economics, tech, and climate. More than what you need to know, it's what you need to think about.

Analysis

The merger between Paramount and Warner Brothers is set to clear regulatory hurdles, paving the way for a historic $110 billion deal in Hollywood. However, the agreement comes with conditions, including a commitment to produce a minimum of 30 movies annually, raising concerns about job impacts and operational feasibility.

Smart money should note the potential for significant job eliminations, estimated at 15,000, as the merger progresses. Additionally, the $6 billion in projected synergies raises questions about how these efficiencies will be realized amidst the challenges of maintaining quality and employment levels in California.

12:48
PDT

Investment strategies are becoming more data-driven.

Paramount Warner Brothers California Rob Bonta David Ellison Nora Melinda Bloomberg Tola Capital Sheila Gulati DoubleLine Capital Jeffrey Sherman

– Research and analysis are key to identifying profitable opportunities.

– There is a shift towards sophisticated investment approaches.

– Firms leveraging advanced analytics may gain a competitive edge.

– Market efficiency could improve as data analysis becomes prevalent.

data-driven investmentinvestment strategymarket efficiency

▸ Full transcript

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.

Analysis

The discussion centers around the importance of making informed investment choices by analyzing data and research to identify profitable opportunities. This highlights a growing trend where investment strategies are increasingly data-driven, moving beyond traditional methods.

Smart investors should note that the emphasis on data analysis suggests a shift towards more sophisticated investment approaches, potentially leading to greater market efficiency. This could also indicate a competitive edge for firms that leverage advanced analytics in their decision-making processes.

12:46
PDT

Paramount's merger with Warner Brothers is now cleared after a settlement.

Paramount Warner Brothers California David Ellison Bloomberg Water Brothers Discovery CIO Wall Street Water Brothers Nora Melinda Jeffrey Sherman PRIVATE CL=F

– The deal is valued at around $110 billion.

– Concerns about job losses persist, with estimates of 15,000 jobs potentially affected.

– Paramount is required to produce a minimum of 30 movies annually as part of the settlement.

– Market reactions show Warner Brothers Discovery trading at an all-time high.

merger activityjob market impactmedia landscape changes

▸ Full transcript

And that's essentially one of the hanging questions that we're seeing on Wall Street is how they're actually able to make good on this condition that they've actually been able to agree to. What does the quality look like as you called out? But I mean, separate to that, I mean, they're really pumping all of these movies out, but we're thinking about the employment and the fact that they're talking also about doubling down on keeping and maintaining their presence in California, which was also a major concern for folks. But as you called out, they talked about $6 billion in synergies. And the question is, where is this coming from? And there are estimates showing that once we see this deal pass, this could mean an impact on jobs. So some job elimination, potentially 15,000 jobs caught up due to this merger. Yeah, Water Brothers discovered trading in an all-time high. Up 11% paramount skydance down, about two in change. Thanks, Bloomberg's Nora Melinda. All right, coming up here, we're going to take a closer look here at those closing bells on the day where we're actually seeing stocks get quite a bit of a rebound. A lot of this, of course, has to do with the drop seen in yields the drop that we're seeing right now in oil prices but a lot of the risk that rattled the market over the last few weeks well those risks still exist particularly in the bond market we're going to catch up with Jeffrey Sherman deputy CIO over at double-line capital when we come back after the break on Bloomberg.

Analysis

Paramount's deal to acquire Warner Brothers has reached a settlement, clearing the path for a significant merger valued at approximately $110 billion. However, concerns remain regarding potential job losses, with estimates suggesting up to 15,000 positions could be affected due to the merger's synergies.

12:44
PDT

Settlement reached in Paramount-Warner Brothers lawsuit.

California Attorney General Rob Bonta Paramount Warner Brothers David Ellison Skydance CEO California Attorney General Rob Nora Melinda Paramount Skydance PRIVATE

– Deal valued at approximately $110 billion.

– Paramount must produce at least 30 movies annually as part of the settlement.

– Regulatory scrutiny remains a key factor in media mergers.

– Potential shift in production dynamics within the industry.

media consolidationregulatory scrutiny

▸ Full transcript

We can and a commitment to engage in good faith and sincerely to try to get what the people of California deserve in settlement talks. So we do prefer when possible to resolve disputes in the board room rather than the courtroom. But if not, we'll go to trial. And in this case, we feel very confident going to trial. That was California Attorney General Rob Bonta discussing the suit to block Paramount's deal to buy Warner Brothers on the close last week. There are stocks of the hour with that case reaching a settlement today, clearing the path to one of the largest high ups in Hollywood history. Joining us live is Bloomberg's Nora Melinda. Nora, big moves. It seems like this is finally, finally behind us. What do we need to know? I mean, it feels like it's been a long journey to getting here. The CEO of Paramount Skydance, David Ellison, saying that this is essentially quote, unquote, complete clearance that we're seeing when we see this deal and what we're seeing out of what we're seeing from these states. Really. So, I mean, this is a really big moment in Hollywood, given the fact that this would be pretty much a massive tie-up between two major companies amounting to about $110 billion for the size of this deal. And it really just begs the question as to what the media landscape's gonna look like more broadly. We also saw some certain conditions that Paramount Skydance has essentially has to agree to to get out of the woods with the settlement. One of those conditions being the fact that the company has actually produced a minimum of 30 movies per year annually. And this has to specifically be.

Analysis

California Attorney General Rob Bonta expressed confidence in resolving the lawsuit blocking Paramount's acquisition of Warner Brothers, indicating a preference for boardroom settlements over courtroom battles. The settlement reached today clears the path for a significant $110 billion deal, marking a pivotal moment in Hollywood's media landscape.

Smart money should note that the settlement includes conditions requiring Paramount Skydance to produce a minimum of 30 movies annually, which could reshape production dynamics in the industry. This deal not only signifies consolidation in media but also highlights the regulatory scrutiny that major mergers will continue to face, impacting future transactions.

12:42
PDT

Industry leaders express legitimate concerns about AI's rapid development.

Sheila Galati Tola Capital Microsoft Sam Altman Dario Amodei Alex Karp Paramount Warner Brothers the United States the Pope

– Investment in AI security and understanding is critically underfunded.

– Transparency in AI deployment is essential for public trust.

– Potential job dislocation from AI necessitates retraining investments.

– A balanced approach between private and public sectors is crucial.

AI regulationsecurity investmentworkforce retrainingpublic trust

▸ Full transcript

Invest like the future is watching. Geek touches on everything that we carry out: media and information, markets, prey, geopolitics.

Analysis

Concerns over AI's rapid development and the lack of regulatory guardrails are being voiced by industry leaders, highlighting the need for increased investment in security and understanding of AI technologies. The conversation emphasizes the importance of transparency and community benefits in AI deployment, suggesting that without these, public trust and acceptance may falter.

Smart money should note the potential for regulatory shifts as public fears about AI's impact on jobs and livelihoods grow. The call for a balanced approach between private sector innovation and public sector oversight could lead to new investment opportunities in security technologies and retraining programs.

12:40
PDT

AI advancements must benefit humanity, not just technology.

Sheila Gulati Tola Capital Microsoft AI Paramount Warner Brothers Pope

– Transparency in AI development is crucial to alleviate public fears.

– Investment in security and ethical considerations is necessary.

– The role of government and private sector collaboration is emphasized.

– Job retraining and social benefits should accompany AI deployment.

AI ethicstechnological progressjob retrainingpublic sentiment

▸ Full transcript

The basic point of it is right is that you can have amazing technical progress that can do amazing things for society, right? Have incredible benefits. But if we're not having those benefits be for humanity, what are we doing? And I think that that's the question of like, what is the morality that we have as we're building this new technology? How does it benefit individuals and people? Okay, there's a form of intelligence. It's not humanity. Great. Opportunity to define humanity as we choose to define it, asking hard questions that we haven't been able to ask before, but where do we find ourselves in that paradigm? What does human meaning mean? As a Catholic, I actually read it. I hate every word of it. It'd be nice if maybe they put the Pope in charge of one of these international bodies to oversee AI. But certainly a conversation we'll continue to have going forward. Thank you so much to Sheila Gulati, founder and managing director over at Tola Capital. Well, coming up, Paramount settling the lawsuit aimed at blocking its deal for Warner Brothers, we'll discuss the details in today's stock of the hour. This is the close on Bloomberg.

Analysis

The discussion highlights the moral implications of technological advancements, particularly in AI, emphasizing the need for these benefits to be equitably distributed among humanity. Sheila Gulati stresses the importance of transparency and community engagement in AI development to counter public fears and ensure that technological progress translates into societal benefits.

Smart money should note that the conversation around AI is shifting from purely technical capabilities to ethical considerations and societal impacts. This pivot could influence regulatory frameworks and investment strategies, as stakeholders demand accountability and equitable outcomes from AI technologies.

12:38
PDT

Public fears about AI's impact on jobs are increasing.

Sam Altman Dario Amodei Sheila Galati Microsoft Tola Capital AI Washington Tokyo Bloomberg

– Calls for transparency in data center deals highlight anti-democratic concerns.

– There is a push for taxing AI consumption to fund social benefits.

– Job retraining is essential due to anticipated job dislocation from AI.

– A balanced approach between private and public sectors is necessary for AI governance.

AI regulationjob retrainingtech governance

▸ Full transcript

On new data center bills until they can do, in his words, an audit. There are a lot of other states out there and other municipalities that have taken a similar approach, whether it's based on sound reason or not, we can debate that. But there's certainly fear amongst the public about what this means for them personally and their own jobs and their own livelihoods. How do you sort of counteract those fears when it doesn't seem like what you just articulated is being articulated by anyone else? It's not being articulated. These data centers were done and the deals were done with state levels and other things without transparency. That's anti-democratic in this country. That doesn't work for people. So what transparently can be done in these communities with making sure that power costs don't increase? Understanding what the benefits to the community will be of this AI, and then understanding how the economics of that work. If we have abundance, we say, okay, so the tech ecosystem talks about AI abundance. We're like, ah, we're going to have abundance, and intelligence will be everywhere. Well, if it's not abundance for everybody, it's not abundance by definition. But so, and what you do with that is, you tax the consumption of AI, right? You take that, you increase social benefits, you also invest in retraining for jobs because we know there's going to be massive job dislocation. You also invest in a new, new deal. Like what is the infrastructure build-out for the country that everybody can, you know, sort of both sides of the aisle can agree on, can we say? Well, I do want to start. You just said something.

Analysis

Concerns are rising regarding the transparency of data center deals, which are perceived as anti-democratic and lacking public engagement. The conversation emphasizes the need for a balanced approach between private and public sectors to ensure that AI benefits are equitably distributed and that job retraining is prioritized amidst potential job dislocation.

Smart money should note the growing public fear surrounding AI's impact on jobs and livelihoods, which could lead to increased scrutiny and regulation of tech companies. The call for taxing AI consumption and investing in social benefits indicates a shift towards more responsible tech governance, which could reshape the investment landscape in the sector.

12:36
PDT

AI security investment is critically underfunded.

Romain Bostic Bailey Lipschels Sheila Galati Microsoft Alex Karp Tola Capital Formalay ABB Siemens Bloomberg US AI

– Emergent properties of AI pose unknown risks.

– Collaboration between public and private sectors is essential.

– The government is not currently leading in AI pacing discussions.

– Technological advancements must demonstrate clear benefits to society.

AI security investmentPublic-private collaborationEmerging technology risks

▸ Full transcript

The status quo, at least from my conversations, is that the government writ large moves much slower than private industries. So even just thinking through to Romain's point, here in the US, we're talking about an administration that doesn't want to slow down anything and is not leading into this idea of pacing. So how does that align? I'm not saying pacing is a slowing. I'm saying, hey, let's speed up on security. It's a different concept, right? If you say, hey, we're going to pace and we're going to slow things down, that's not what I'm saying. I'm saying, let's invest in security. Let's invest to get it right. We are woefully under-invested in what we're doing, vis-a-vis security, identity, and understanding of what the AI is doing inside these firms, and that's what they're coming out and saying. When we talk about emergent properties of AI, that means we don't know why the AI did what it did, but we've never understood this in a deep way. So we need to actually increase understanding and investment in security. But does that, as Alex Karp said, fall on the individual company to lean into? It's both. It's absolutely both. When we came out with cars in America, we didn't say, hey, why don't the car makers decide what the speed limits should be? Why don't they decide when we should have seatbelts and airbags and these other safety concerns? So it has to be in concert between the private sector and the public sector. And the other layer of concert is, look, we're building this technology to improve humanity. It is something that can improve humanity in a dramatic way. But people need to see the benefits of that. People need to say, hey, data centers.

Analysis

The discussion highlights the urgent need for increased investment in AI security as the government lags behind private industry in addressing potential risks. The emphasis is on a collaborative approach between the public and private sectors to ensure safety standards in AI development, rather than simply slowing down innovation.

12:32
PDT

Concerns about AI capabilities and lack of guardrails are legitimate.

Sheila Galati Tola Capital Microsoft Sam Altman Dario Amodei United States AI MSFT META

– Pacing AI development with security measures is crucial.

– Government-led efforts may struggle to address AI fears effectively.

– Investors should focus on companies prioritizing safety in AI.

– The narrative around AI is shifting towards caution and regulation.

AI regulationtechnology safetyinvestment strategy

▸ Full transcript

A lot of alarm is being raised, and we should point out that for that state dinner on Thursday in Washington, I guess to put a punctuation on that mark. If you look at the guest list, it's a who's who in the world of technology and AI. Joining us here in studio two is another icon in that space, Sheila Galati, founder and managing director over at Tola Capital and Formalay. She helped to run Microsoft's Azure business. Great to see you, Sheila. Great to see you, thanks for having me. I do want to start off with some of the warnings that we've gotten recently from Sam Altman and Dario Amodei, and quite a few other folks here. Whether we should actually be taking what they say seriously, what they're highlighting is self-serving, or are these legitimate issues about the capabilities of AI, and more importantly, at least in their view, the lack of guardrails? They're legitimate concerns. The conversation about pacing the frontier of AI, I don't think that people are going to necessarily take kindly to a slowdown metaphor. But a pacing that is paced with our ability to secure the technology that we're delivering out to individuals and companies is a smart way to think about pacing. And that's often what people are talking about. But how do we do that? I mean, I should point out, the president of the United States has come out and used his words that all these fears over AI are a hoax. I understand, look, the president has a way with words. But ultimately, if this is going to be a government-led effort, it's hard to believe that it will be effective.

Analysis

Sheila Galati, founder of Tola Capital, emphasizes the importance of pacing the development of AI technologies to ensure security and mitigate risks. Despite some leaders dismissing fears around AI as exaggerated, the need for guardrails is increasingly recognized as essential for responsible innovation.

Smart money should note that the conversation around AI is shifting from unbridled enthusiasm to a more cautious approach, highlighting the potential for regulatory frameworks to shape the industry. This could lead to increased investment in companies that prioritize safety and compliance in their AI offerings, creating a competitive advantage in a rapidly evolving landscape.

12:30
PDT

ABB's new racks will draw up to one megawatt of power.

ABB Brandon Spencer NVIDIA Washington Tokyo Japan AI Bloomberg Equity Indices In Japan This December Annemarie Hordern Ankara Turkey PRIVATE

– Direct current connections could yield 5% efficiency gains.

– 20-30% of data centers may adopt this technology by 2030.

– ABB has experience with DC systems from marine applications.

– Collaboration with NVIDIA is crucial for chip compatibility.

energy efficiencydata center technologycollaboration in tech

▸ Full transcript

built using transparent rules-based methodologies that are more responsive to changes in the markets, powered by 450 billion daily data points, and backed by research from hundreds of global experts, delivering benchmarks driven by the markets, not opinions. Bloomberg Equity Indices get evolved benchmarks for today's equity markets. The world is repricing risk. Geopolitics, inflation, and AI are rewriting the rules of capital. In Japan, rates are resetting, corporate reform is accelerating, and Washington and Tokyo are acting together to support the yen. Japan's reset is a global story, because what happens in Japan can move markets and portfolios worldwide. This December, global capital meets in Tokyo. Bloomberg invests Tokyo. December 2nd and 3rd, where intelligence meets capital. Bringing you up to the minute geopolitical news whenever and wherever it happens. I'm Annemarie Hordern and Ankara Turkey. This is Bloomberg. 3.30 p.m. here in New York. This is the countdown to the close. I'm Romain Bostic. And I'm Bailey Lipschels. You know, Bailey, a lot of the high-level people, if you will, are descending on New York, a variety of meetings around the U.N. General Assembly.

Analysis

ABB's new data center racks are set to significantly increase energy efficiency, with power needs expected to rise five to six times, reaching one megawatt per rack. The introduction of direct current (DC) connections promises efficiency gains of around 5%, which could have substantial implications for energy consumption in data centers.

Smart money should note that while ABB aims for 20-30% adoption of this technology in data centers by 2030, the hybrid nature of implementation suggests that traditional AC systems will still play a role. This indicates a transitional phase in energy technology that could impact investment strategies in both energy and technology sectors.

12:27
PDT

ABB's new data center racks aim to improve energy efficiency significantly.

ABB Brandon Spencer NVIDIA International Energy Agency Malaysia Thailand Korea Singapore AI VC Silicon Valley Sheila Galati PRIVATE

– The shift from AC to DC current could lead to 5% efficiency gains.

– ABB is collaborating with NVIDIA to align technology needs for data centers.

– The demand for data center power is expected to increase five to six times.

– AI financing risks are concentrated in the US but have global implications.

energy efficiencyAI infrastructurefinancial stability risk

▸ Full transcript

That with the same message and same importance as generation. I don't mean to be good, but I think it's funny too. I mean, you work at ABB, you started your career at Siemens for a lot of years when nobody cared about electricity other than the people who worked in electricity. And now you're probably got to be one of the most popular guys in Silicon Valley who plays holding the keys to the kingdom. Well, look, we're trying to be out there serving our customers and do this, get the energy where it needs to be in the most efficient way possible. And really that's what ABB is focused on. So it's a good time to be in the energy business, but there's also real challenges. And so we're out there talking to schools, to students, to everyone to come into this industry, be part of the solution, and not just talk about what the challenges are. All right, well, Brandon, really appreciate you stopping by. Thanks for having us. Congratulations. Brandon Spencer, they're president of ABB Emotion. When we come back, we continue our discussion about what's going on in the world of AI and the importance of actually pacing the build out. AI and software focused, VC founders, Sheila Galati gonna be joining us, when we come back after the break to talk about the risk and the opportunity. This is Bloomberg.

Analysis

ABB is positioning itself to meet the growing power demands of data centers, with new technology aimed at improving energy efficiency. The shift to DC current connections could yield significant efficiency gains, potentially transforming energy consumption in the sector.

Smart investors should note the increasing interdependence of AI and energy infrastructure, as the demand for efficient data centers rises. ABB's collaboration with NVIDIA highlights the critical role of partnerships in addressing the challenges of scaling AI technologies sustainably.

12:24
PDT

ABB's new data center racks will improve energy efficiency.

ABB NVIDIA IMF Kristalina Gorgieva Malaysia Thailand Korea Singapore DC NVDA

– Collaboration with NVIDIA is crucial for chip compatibility.

– The rollout will take 12 months, with full implementation expected by 2035.

– 20-30% of data centers may adopt this DC technology by 2035.

– Public grid limitations are influencing data center builders' strategies.

energy efficiencydata center technologycollaboration

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Everything making sure we keep the people safe, right? Everything we do, we have to deploy in a reliable and safe way. Nothing changes here with DC. You know, some different trainings and things that technicians will have to go through and do, but all in all, safe system, reliable, less energy. So a window's like the first rack sort of actually, you know, get that switch gets flipped and it's actually up and running. Yeah, so we'll roll out the end solution across the next 12 months. You can expect kind of a two to three year timeframe before that's implemented in the field. The good news is we've been doing this on ships in the marine business for the last 25 years. So this is not brand new to us in ABB. It's just the whole end-to-end solution with all the components that come in the middle. How involved is NVIDIA in this? Are they helping to design this? Yeah, we're working with NVIDIA. We're working across the hyperscalers. I mean, it's really important that they help us know when are the chips coming out? What are the sizes and power ranges that they need? How can ABB best serve that? And so we're kind of intimately involved across the hyperscalers to say how we're gonna implement this technology. Is the ambition for this to be kind of ubiquitous across the spectrum? Are there any technologies or chips that maybe you're not compatible for this? Yeah, this will be a hybrid. I mean, every data center is not gonna be 100% DC. It'll apply for parts of it, but you can think 20 to 30% as we look ahead. You know, ABB is in one out of every four data centers, you can think kind of 20 to 30% in the 2030, 2035 timeframe will have this technology deployed. I mean, give me a sense of what you're seeing here with regards to this data center build out. I mean, are some of these builders kind of giving up on the public grid option? I know there's been a lot of talk about the public grid not being ready for all this.

Analysis

ABB is rolling out a new energy-efficient data center rack system that utilizes DC connections, promising up to 5% efficiency gains. The collaboration with NVIDIA and hyperscalers indicates a strategic move to meet the growing power demands of data centers while ensuring reliability and safety.

The shift towards DC technology in data centers reflects a broader trend of increasing energy efficiency amidst rising electricity demands. Smart money should note that this hybrid approach could redefine operational standards in the data center industry, potentially impacting energy consumption patterns and infrastructure investments.

12:22
PDT

Global electricity demand from data centers expected to double by 2030.

International Energy Agency ABB Brandon Spencer Washington DC DC AC The International Energy Agency

– ABB's new data center racks aim to improve energy efficiency.

– Power requirements for data center racks projected to increase five to six times.

– ABB's DC connections could provide 5% efficiency gains.

– Potential to power all of Washington DC for a week with a 300 megawatt facility.

energy efficiencydata center demand

▸ Full transcript

The International Energy Agency expects global electricity demand from data centers to double by 2030. One company trying to meet that demand is ABB, which has a new portfolio of data center racks out today that they say will improve energy efficiency and computing capacity. Joining us now is the president at ABB Motion, Brandon Spencer. Good to see you again, Brandon. Yeah, thanks for having us. All right, so let's talk about this here. I mean how much power are these racks able to draw and deliver? Yeah, look, the power needed at the rack is going to go up five or six times from what it is now, which is already up from where it was. And so you're seeing one megawatt that needs to be deployed at the rack. That's a tremendous amount of power that has to get distributed through a facility and ultimately consumed at the chip level for the additional computing. Are these power needs though, are they going to get more efficient? Because every time we talk about with somebody about building data centers, everyone just pulls their hair out over the power demands. And I would think at some point that technology would eventually catch up with that and maybe there would be a more efficient way to keep these things up and running without drawing as much power. Absolutely. So with the release today, ABB releases the first source to rack DC connections. So what does that mean? Instead of AC current, we're doing DC current. You're talking 5% efficiency gains, which doesn't sound like a lot, but if you say it's enough to power all of Washington DC's surrounding area for a week on a 300 megawatt facility, that starts to be a lot.

Analysis

The International Energy Agency forecasts that global electricity demand from data centers will double by 2030, prompting ABB to launch a new portfolio of energy-efficient data center racks. ABB's president, Brandon Spencer, highlighted that the power requirements for these racks are expected to increase significantly, but their new DC connections could yield efficiency gains of up to 5%.

Smart money should note that while the demand for power in data centers is surging, ABB's innovation in DC technology could provide a competitive edge in energy efficiency. This shift towards more efficient power distribution could mitigate some of the operational challenges faced by data centers, making ABB's offerings increasingly relevant in a high-demand environment.

12:20
PDT

Data is becoming a critical asset in finance.

Missouho Financial Group Green Hill Brandon Spencer Tola Capital Nick Kenner Jalen Brunson Josh Glessing IMF Kristalina Gorgieva Malaysia Thailand Korea

– Investment strategies are increasingly driven by data insights.

– Recognizing patterns in data is essential for future investments.

– Companies leveraging data analytics may outperform competitors.

– A shift in capital flows towards data-driven firms is likely.

data analyticsinvestment strategy

▸ Full transcript

Dein Lieblingsspiel, Punkte verwenden. Denn für dich sind Daten nicht einfach nur Daten. Sie sind das große Ganze, nur gut getanzt. Das ist für die, die in allem ein Muster erkennen. Das ist für die Kunst der Finanzen und denken, was heute die beste Investition ist, um Geld in der Zukunft zu machen. Investieren wie die Zukunft, die sie sehen.

Analysis

Data is increasingly viewed as a holistic asset, essential for making informed investment decisions. The emphasis on recognizing patterns within data highlights a shift towards a more analytical approach in finance, suggesting that future investments will be driven by data insights.

Smart money should note the growing importance of data analytics in investment strategies, as firms that leverage data effectively may gain a competitive edge. This trend indicates a potential shift in capital flows towards companies that can harness data for strategic decision-making.

12:18
PDT

Circular financing in AI poses financial stability risks.

U.S.Malaysia Thailand Korea Singapore AI

– A loss of confidence could create a difficult feedback loop.

– The risk is primarily U.S.-centric but has global implications.

– Asian countries are integral to the AI supply chain.

– Investors should watch for developments in both U.S. and Asian markets.

AI financing riskglobal supply chainfinancial stability

▸ Full transcript

There are high expectations surrounding AI, and if they don't materialize, disappointment may lead to a potential shock to the system. There is a lot of leverage around AI and a lot of circular financing, which is something we have to be mindful of. Does that circular financing and some of the issues surrounding it appear to you as a growing financial stability risk? It does, because what it tells us is that should there be a loss of confidence, then you have this loop that you cannot easily handle. We are seeing quite a lot of debt financing and a lot of interdependence when it comes to financing AI. Whose problem is that though? Is that primarily a U.S. problem, a European problem, or is that a global problem that smaller countries will have to bear? It is primarily concentrated in the U.S., but there are two things we need to pay attention to. One, the supply chain of AI includes many other players. You look at countries like Malaysia, Thailand, Korea, and Singapore; they are integrated into the AI value chain.

Analysis

Concerns are rising over the financial stability risks associated with circular financing in the AI sector, particularly in the U.S. A loss of confidence could create a feedback loop that is difficult to manage, highlighting the interconnectedness of AI financing across various countries, including those in Asia.

Smart money should note that while the primary risk is concentrated in the U.S., the global supply chain for AI involves significant players in Asia, indicating that potential shocks could have wider implications beyond American borders. This interconnectedness suggests that investors should monitor developments in both U.S. and Asian markets closely.

12:11
PDT

Warner Brothers Discovery's merger is a major milestone in 2026's M&A landscape.

Warner Brothers Discovery Paramount Skydance California David Ellison Mizuho Securities USA Japan Green Hill Missouho Financial Group US USA Mizuho Financial Group

– M&A volume has reached $4 trillion year-to-date, indicating a record deal-making environment.

– Japanese firms are increasingly looking for investment opportunities both domestically and abroad.

– The Japanese government is targeting $2.5 trillion in investment across 17 critical sectors.

– US corporations are exploring opportunities in Japan, particularly in AI sectors.

M&A activityJapanese investment strategycross-border investmentcorporate cash reserves

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As the financial world expands internationally, the controls currently in place are sufficient to protect investors. I have a lot of confidence in the controls at Mizuho Financial Group. With the benefit of hindsight, we can learn a lot from deals that don't go as expected. Whenever we do a deal that doesn't go the way we expect, we sit down and think about what we could have done differently. I think every business does the same thing; Japanese firms are no different than US firms. To wrap this up, the evolution of Mizuho Securities USA, particularly with the Green Hill deal, has solidified our position as more than just a financier of deals, but as a significant player in crafting those deals. This year will see the highest revenues ever for Mizuho Financial Group in terms of advisory, surpassing last year.

Analysis

Warner Brothers Discovery is set to finalize a $100 billion merger following a settlement with California and other states, marking a significant milestone in M&A activity this year. The favorable regulatory environment and strong corporate revenues suggest a robust appetite for deal-making, particularly in cross-border investments, especially in Japan.

The Japanese economy is undergoing a transformation, with the government targeting critical sectors for investment, which could lead to increased domestic and foreign investment opportunities. The shift in Japanese corporate behavior, with a focus on utilizing substantial cash reserves domestically, may signal a new era of investment dynamics that could reshape market strategies.

12:09
PDT

Yen has weakened to around 163 per dollar, impacting inflation and exports.

Japan Jerry Rosario Mizuho Securities USA DXY

– Corporates are more proactive in deploying cash than households.

– Asset management firms are targeting Japan for investment opportunities.

– There is a potential shift in investment strategies due to currency dynamics.

– Household cash reserves remain high, indicating cautious consumer sentiment.

currency dynamicscorporate investmentJapanese economy

▸ Full transcript

Big jumbo deals, dollar-denominator jumbo deals are coming into that space. So, were you at all? The currency moves. Yeah. I mean, it wasn't too many years ago, I think 2022, 2023, we were sitting around what, $110, $115 yen. Now we've reached $161, as high as $163 or so. I think it's a factor. I mean, of course, I think the weakening of the currency is certainly imported inflation for sure. It has also helped the export industry. So I think these things all manifest over time. Yeah, how do you think that that, coming back to manifesting over time, how quickly will you see kind of this change if the yen continues to stay where it's at or continues to weaken potentially further? And how does that impact some of this household savings that people have been hoping to be deployed, but it's been the story of Japan? I think the corporates are moving faster than households. That's my sense. So you've got a lot of asset management companies looking to go into Japan because of trying to harness some of this $7.5 trillion. And I think some of that will certainly be kept domestically. But certainly a fair share will look outside Japan as well. Jerry, I do have to ask you just about, just in general, some of the sort of international controls out there in the financial system right before we came on air.

Analysis

The Japanese yen has weakened significantly, impacting both imported inflation and the export industry, with the exchange rate reaching as high as 163 yen per dollar. Corporates are moving faster than households in deploying cash assets, with asset management companies looking to invest domestically and abroad, indicating a shift in investment strategies in Japan.

Smart money should note that while corporates are eager to harness the substantial cash reserves, households remain cautious, which could slow down domestic investment. The changing dynamics of the yen and the focus on cross-border investments may create new opportunities for international asset managers seeking to capitalize on Japan's evolving economic landscape.

12:06
PDT

Japan targets $2.5 trillion investment in 17 sectors over 14 years.

Japan U.S.AI companies AI

– Japanese households hold approximately $7.5 trillion in cash assets.

– U.S. corporations are increasingly interested in Japanese investments, especially in AI.

– The shift in Japan's economic policy may retain more domestic capital.

– Cross-border investment opportunities are expanding due to favorable conditions.

cross-border investmentJapanese economyAI sector growth

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The current government has identified 17 sectors that are critically important to the Japanese economy and is targeting close to $2.5 trillion of investment, both private and public, over the next 14 years. This is creating a lot of momentum for the Japanese economy and hence interest in investing in Japan, but also corporates in Japan looking outside. Well, that's what I'm curious about, about the Japanese money itself because the narrative for so many years was that money always sort of left Japan, looking for investment opportunities elsewhere. There's obviously a lot more incentive now, financial incentive to maybe keep that money at home. At the same time, you're seeing U.S. corporations now go there, particularly with some of these AI companies, and look to sort of maybe take advantage of some of this yen borrowing. What's the balance between the two? Well, I mean, in terms of looking into Japan for investment, I mean, households in Japan have about half of their financial assets in cash. So think about $16 trillion approximately, household assets, maybe $7.5 trillion sitting in cash. Corporates have close to $2.5 trillion in cash. By the same token, U.S. corporates are maybe close to $3 trillion. So there's lots of opportunity. Given the new initiatives from this administration in Japan and also I think a different mindset, you know, you've had deflation for a long time.

Analysis

The Japanese government has identified 17 critical sectors for investment, targeting approximately $2.5 trillion over the next 14 years, which is expected to boost domestic economic momentum. This shift may encourage both Japanese households and corporations to invest locally, while also attracting U.S. firms looking to capitalize on favorable conditions in Japan, particularly in the AI sector.

Investors should note the significant cash reserves held by Japanese households and corporations, totaling around $16 trillion and $2.5 trillion respectively. This liquidity, combined with a changing economic landscape and government incentives, presents a unique opportunity for cross-border investments and could reshape capital flows into Japan.

12:04
PDT

Favorable regulatory environment supports corporate deal-making.

Japan U.S. economy corporations investors

– Strong revenue generation among companies encourages investment.

– Uncertainty exists regarding midterm elections' impact on corporate strategies.

– Cross-border deals, especially with Japan, are gaining interest.

– Potential structural changes in deal appetite may emerge.

M&A activitycross-border investmentregulatory environment

▸ Full transcript

is what we're seeing cross-border, particularly with respect to Japan and the interest we're seeing both inward and outward. Well, before we get to Japan, I am just curious about when you talk about the deals that we've seen, obviously there are some really large deals that are skewing the numbers just a bit. But are you seeing maybe a structural change in just the appetite for corporations to actually make deals, but more importantly for investors to actually embrace the financing on that given the current regulatory environment and some of the other issues going on right now? Yeah, I mean no doubt it's a very favorable regulatory environment. Companies are generating a lot of revenue. And I think, and likewise I think the outlook for the U.S. economy is still pretty strong. So I think the incentives are still there to invest. How do you think about the impact of the midterm elections? Are you seeing companies want to be on the offensive footing ahead of what could be a pretty contentious election? I have not heard that. I have not heard that. Are there areas that you expect to continue to see ripe for deals, whether it's cross border you mentioned Japan or are we all seeing kind of certain green shoots? I don't have a specific view on what industry will be most ripe, but what I mentioned earlier was what we're seeing on the cross border side is perhaps the most interesting to us. Well, let's talk about the cross border side. Obviously a lot of that has to do with the changing nature. We talk about Japan specifically with the changing nature of the Japanese economy, Japanese fiscal policy, and for that matter, Japan.

Analysis

The current regulatory environment is favorable for corporate deal-making, with companies generating substantial revenue and a strong outlook for the U.S. economy. However, there is uncertainty regarding the impact of the upcoming midterm elections on corporate strategies, as companies do not appear to be positioning themselves offensively ahead of the elections.

Cross-border deals, particularly involving Japan, are becoming increasingly interesting due to changes in the Japanese economy and fiscal policy. Investors should note the potential for structural shifts in deal appetite, as companies may seek opportunities in a favorable regulatory landscape despite the looming political uncertainties.

12:02
PDT

Warner Brothers Discovery's stock is reacting positively to merger news.

Warner Brothers Discovery Paramount Skydance David Ellison Mizuho Securities USA UN General Assembly Trump California UN CEO USA General Assembly Jerry Rosario

– The $100 billion merger is a significant milestone in the current M&A landscape.

– M&A activity is robust, with investment-grade debt capital markets seeing over 30% growth.

– Record deal-making is indicative of a strong corporate environment.

– The upcoming UN General Assembly and geopolitical events may influence market sentiment.

M&A activityinvestment-grade debtgeopolitical risks

▸ Full transcript

To this rally today, saying the central bank's response to those persistent supply shocks won't be painless. Comments he made on a day where Americans are feeling the pain of record high diesel prices, now at $6.50 a gallon. And comments made ahead of a busy week on the macro and geopolitical front, including the UN General Assembly at the start of the week and those Trump G talks towards the end. But we do want to start the show today with a little bit of a look at M&A. She has a Warner Brothers Discovery surging after Paramount Skydance settled with California and other states that were suing to block the company's merger. CEO David Ellison just moments ago telling staff he'll now close that $100 billion deal in just a couple of weeks, which would make it the third largest deal completed in the past decade and second biggest in 2026, a year that has already defined expectations in setting record after record. $4 trillion M&A volume year to date. It's a massive M&A year and corporate deal-making is incredibly active. One of the seams this year is clearly the number of deals we see in the debt capital markets with investment-grade activity up more than 30%. Record deal-making, a record deal boom and of course one company that's trying to make sure that it's at the center of it all. Kicking us off to the close here on this Monday afternoon is Jerry Rosario, his president and CEO of Mizuho Securities USA. Great to see you again, Jerry. Nice to see you. Let's talk about the deal-making environment. It's obviously you will find out.

Analysis

Warner Brothers Discovery's stock surged following the settlement of lawsuits that were blocking its merger with Paramount Skydance, with CEO David Ellison announcing the $100 billion deal will close in a couple of weeks. This merger is set to be the third largest completed in the past decade, highlighting a significant uptick in M&A activity, with year-to-date volumes reaching a record $4 trillion.

11:57
PDT

Accenture (ACN) up 3% amid AI optimism.

Accenture ACN Warner Brothers WBD Paramount Skydance Bloomberg Intelligence IT AI OK CEO Paramount Skydance PRIVATE

– Warner Brothers (WBD) benefits from legal settlements.

– $110 billion acquisition deal for Warner Brothers is closer.

– Analysts maintain revenue models for Accenture.

– Market sentiment is shifting positively towards IT and media sectors.

AI investmentmedia mergersmarket sentiment

▸ Full transcript

ACN is up about 3%, and analysts are not changing their models here. They say they don't really see revenue outside. This company actually had an agreement with Anthropic already. But what our colleagues at Bloomberg Intelligence say is this is just some positive evidence about the role of these IT companies in the AI future, so that always gives you a little bit of optimism, at least on a sentiment level. OK. So interesting ACN, Accenture on the move to the right side. So too is WBD. Yes, Warner Brothers is starting to get a boost after Paramount Skydance settled these lawsuits from state attorneys general and from the writers guild that basically opens the path to closing the $110 billion deal to buy Warner Brothers. On the Bloomberg terminal, the stock closed on Friday more than $3 below that $31 a share offer price. Now you look at it today, it's trading just 20 cents below. Long path. I'm we're going out to screen time next week. I know I'm like this, we're talking about this at screen time right here ago at last year's screen time. That's like to go CEO. Yeah, like no Peters not interested, interested, and then eventually. Yeah, we're interested. Yeah. But we're not gonna get it. And they didn't get it. And here we are.

Analysis

Accenture (ACN) is up about 3% as analysts remain optimistic about the company's role in the AI future, despite no changes to revenue models. Warner Brothers (WBD) is also seeing movement after a settlement that clears the path for a $110 billion acquisition deal, with its stock trading just 20 cents below the offer price.

The positive sentiment around Accenture reflects broader confidence in IT companies' involvement in AI, which could signal a shift in investment focus. Meanwhile, the resolution of legal issues for Warner Brothers may indicate a more favorable environment for mergers and acquisitions in the media sector, potentially attracting more investor interest in similar deals.

11:55
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S&P 500 up 1.6%, NASDAQ up 2.3%, Dow up 0.8%.

Accenture Anthropic S&P 500 NASDAQ Dow Brent crude WI AI Dorothy John World Equity Indices Carol Masser Tim Stenevac S&P 500 NASDAQ PRIVATE

– Brent crude futures are hovering around $100 a barrel, down about 3%.

– Accenture's collaboration with Anthropic focuses on AI safety.

– Market sentiment is bullish on equities.

– Energy sector shows weakness amid falling crude prices.

equity market trendsAI safety initiativesenergy sector dynamics

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Of course, Dorothy John was the lion. And this is before it came out in the sphere. Yes, a classic. The sphere, by the way, a lot of fun. Made me a little nauseous though. Okay. It's a lot of movement. All right, not making me nauseous because I feel like the market, certainly on the equity side of things, just going in one direction here. Yeah, it is. If you look at the WI function on the Bloomberg terminal, World Equity Indices, the S&P 500 up 1.6%, the NASDAQ up 2.3%, the Dow up 0.8%. We also got energy lower, Brent crude futures hovering around $100 a barrel. But we dipped below before, still down about 3%. All right, let's get to some stocks on the move on this Monday. I'm Carol Masser along with Tim Stenevac here to do that with us is Bloomberg News U.S. equities reporter. He is Matthew Griffin joining us here in studio. We're going to start with Accenture. Yes, well Carol, Accenture is getting a boost from all of this talk about AI safety that we've seen over the last couple of weeks and specifically from this announcement late on Friday that they are going to embed Accenture evaluators in Anthropic to try to make sure those models are safe. We don't know a ton of details yet. We also, what are they going to do exactly, right? Nobody knows quite yet, right? Have you seen office space where the consultants come in? There's the AI models are aligned with human goals. So it does at least sound more interesting.

Analysis

U.S. equity markets are showing strong gains, with the S&P 500 up 1.6%, the NASDAQ up 2.3%, and the Dow up 0.8%. Accenture is gaining traction due to its partnership with Anthropic to enhance AI safety, signaling a strategic move in the tech sector.

11:49
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President Trump is revoking press passes based on viewpoint, raising First Amendment concerns.

President Trump Fox News First Amendment Institute Columbia University White House First Amendment

– The legal battle may influence public sentiment towards the administration.

– Independent journalism is crucial for government accountability.

– Fox News is supporting other outlets in this First Amendment fight.

– The outcome could set a precedent for future government-media interactions.

First Amendment rightspress freedomgovernment accountability

▸ Full transcript

Speech is uncomfortable? Well, certainly it is. And I mean, I think one could argue that President Trump's own speech sometimes is uncomfortable. But we want to protect his own personal speech rights, as well as the right of the government leader to engage in speech. But I think one of the things you said is actually important, which is not everybody can go and get a press pass. And by obvious reasons, we can't all go into the White House to hear the president speak. And that's why it's so important to allow members of the press and news outlets that aren't just, you know, handpicked by the government because they are serving as a proxy for the public and they are informing the public and they get the access, but not just for their own rights, but the right of the public to learn about what the president is doing. And I think the other thing is the way this has been set up, again, by the White House for decades, is they say, we're going to make these press passes available. You have to get credentials. You have to pass security review. But the rule is they're not supposed to pick and choose among the reporters or news outlets who can get these press passes based on viewpoint. Because otherwise, they're just going to choose people that support whatever administration is in power. And I also think it's, I mean, I was heartened to see Fox News taking a stand and supporting these other outlets and other more conservative news outlets, supporting the First Amendment.

Analysis

The ongoing legal battle over press access to the White House highlights significant First Amendment issues, as President Trump revokes press passes based on viewpoint. This situation underscores the importance of independent journalism in holding government accountable, particularly as the administration seeks to limit access to information.

Smart money should recognize that the implications of this legal showdown extend beyond press freedoms; it may influence public sentiment and investor confidence in the current administration. The outcome could set a precedent affecting how government interacts with the media, potentially impacting market stability and regulatory environments.

11:47
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White House press passes must adhere to due process.

White House President Trump First Amendment Institute Columbia University Katie Fallow CNN MSNBC Politico First Amendment

– Revocation of press access may violate First Amendment rights.

– Legal claims include viewpoint discrimination and public forum doctrine.

– Judicial response expected to be swift and potentially favorable to press.

– Tension between government and media could impact public trust.

First Amendment rightsgovernment transparencymedia freedom

▸ Full transcript

For decades, it has been held that White House press passes must be subject to due process. You can't just take away any reporter's press pass without giving them a reason or an opportunity to appeal. Part of the reason why they've held that is because the courts have recognized that it would violate the First Amendment rights of reporters to revoke the press pass without giving any explanation. The complaint also discusses a separate legal theory of retaliation under the First Amendment, which again states that the government cannot punish speakers based on their viewpoint. The last claim is this public forum argument, which is a long-standing free speech doctrine that holds that when the government opens up some of its spaces, such as government buildings or meeting rooms, it allows either members of the public or members of the press to come into those spaces and engage in expression by news gathering and asking questions and reporting to the public. It has created a public forum, and the government may not exclude people from that forum based on viewpoint or the content of their expression. That's exactly what the government and President Trump have done here. So, safe to say, I'm playing devil's advocate a little bit here, that not everyone can get a White House pass to cover the president.

Analysis

The White House's recent revocation of press passes for certain media outlets raises significant First Amendment concerns, as it appears to retaliate against unfavorable coverage. Legal experts suggest that this move could lead to a swift judicial response, reinforcing the principle that government cannot punish journalists based on their viewpoints.

Smart money should note that the legal framework surrounding press access is well-established, and any attempt to limit it could face strong opposition in court. This situation highlights the ongoing tension between government transparency and media freedom, which could have broader implications for public trust and market sentiment.

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