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This is Bloomberg Business Wait inside from the reporters and editors who bring you America's most trusted business magazine, plus global business, finance and tech news. The Bloomberg Business Week Podcast with Carol Messer and Tim Stenebeck from Bloomberg Radio.
Keep on. We are definitely keeping our eye on the ball here at the US Open. I'm also keeping my nose on whatever that is. French fries smell.
Interesting? Interesting? You went there? I brought Carol. I brought Carol French fries yesterday. Something you have to know about Carol Masser is she has never met a French fry she didn't love. It's like her secret snack.
You can dip them in mayonnaise. That's not about that so yummy.
So there were some pretty good fresh French fries yesterday here at the US Open. Brought her some. Hey, we're talking about food, because I love talking about food. You know what's more expensive than it was last year?
Honey deuce?
Yeah, twenty three bucks each, up from twenty two dollars last year.
What's up with that?
Melons inflation?
Yeah?
Okay, okay, so kind of a perfect segue to talk about the Fed's reserve FED reserves preferred measure. I have not had any honey juices, I promise not yet. The Fed's preferred measure of underlying US inflation, which we got earlier this morning. So this was a focal point heading into the Labor Day holiday weekend. It rose at a mile pace, and household spending picked up in July, reinforcing
policymakers plan to start cutting interest rates next month. It was interesting we talked earlier right on Bloomberg Intelligence, how this might have felt a little bit like a Goldilock's economy, or more evidence of it. Molly Smith is Bloomberg News Economics editor, and she joins us here on site at the US Open. So good to have you here with us. So amazy to be here.
Our annual tradition.
I know, and it's a good one. It's a really good one. We're gonna talk tennis in a moment. The report, it feels like it's just all falling into place. How do you see it?
So yeah, I mean, this is obviously, of course, what you would want to see if we are going to talk about pyking, a soft landing of the economy. For inflation to be moderating for consumers to keep spending, and that's exactly what the recipe would be. Just some cautionary note though, to keep in mind, is that you know a lot of people were flagging about this report with
regards to consumer spending. Is that a lot of it really reflected the rebound in auto sales after the cyber attack in June, and that how disruptive that was for the industry. Outside of that, it was a little bit more mixed. And of course, looking at the income growth measures and the saving rates dropping down not great, not great.
That doesn't pode well for consumer spending going forward. And we also got the University of Michigan data later in the morning looking at measures of consumer finances also feeling very stretched there, which could also pose a risk to spending going forward.
I know you're focused on the macro, but I got to bring in this headline that we just heard from Amy Morris just crossing the Bloomberg terminal, Goldman Sack set to layoff over thirteen hundred workers. This is according to The Wall Street Journal. They're planning to cut between three to four percent of its workforce. Typically. The Journal's Lauren Thomas right. So Goldman aims to trim between two percent and seven percent of its workforce annually based on various
performance factors. When you see a headline like that, as an economics editor, do your spidy senses start to tangle?
It all could be going on, I mean, especially because the lay of the word of the land has really been that layoffs are very low. So when you see that this is happening at a company that we all know about, of course you're like, what's going on here? I mean, we do know that Goldman, So the other several of the other banks have been laying off workers recently in different batches. You know that they had got they had over hired a lot, you know, in the
past couple of years. So I think a lot of people this seems to be looked at generally is more a moderating of the workforce rather than a wholesale cutting of it. I mean, of course I haven't read the story yet, but that seems to be what a lot of the vibe is by.
But more broadly, where we.
Have seen more of the struggle in hiring has been in white collar professions. And this has been where you would expect, right now to see more of the layoffs happening.
I find it interesting because we've had conversations with Geena Martin Adams about bank earnings in general that that has been a standout. So I feel like, you know, the financial sector has performed, and yet you're still seeing some trimming of the workforce. And as you said, it's not a case that we've heard layoffs in general. We've heard companies maybe not hiring as aggressively, but they haven't been
laying off workers. I also feel like you and I keep talking to people who say we're getting now we used to get one or two resumes for a job, Now we're getting forty, like huge jumps. To me, it says there's a shift and people coming out of college having a tough time finding jobs.
It is definitely a tough job market to work in right now. And it's so it pains me to say that in a way because when you look at the numbers, it really doesn't feel that way. Where you still have a pace of hiring that's well over one hundred thousand jobs a month, that the unemployment rate, yes has been going up, but still is historically low, that wage gains are still positive it's hard to square that with this
is still a tough job market. But I think the way to reconcile it is that what I tell my friends is that it's not a job market where I would quit my job voluntarily if I didn't have something else lined up, you know, just experiencing what it's like, even if you just wanted to like casually spit out your resume and see what other options are out there. The amount of ghosting that is still happening, and how
many weeks, months can go by without hearing something. I mean, when we talk to job seekers, this is regularly bring back that it's just been a brutal environment out there.
Statistics don't show that at all.
And that's what's very frustrating too, that, like I think what I've really learned a lot from my job in like squaring the economic statistics with the real world. When I post about some of these things on LinkedIn and other social media and you see the comments, and I don't feel like I'm being attacked, but I hear like these people are almost like yelling, like the numbers are lying.
This is not the real lived experience, Like this is a horrible economy, Like people are feeling like so stretched thin in every which way. And yeah, I can imagine if you are somebody who feels that way and you hear people like us saying, you know, inflation's moderating, like this is Goldilocks, everything's great. It doesn't feel that way.
Also, serious political implications ahead of the presidential election. We'll hear the candidates talking even more I think in the coming weeks about the economy. Before we let you go, we're talking tennis. Molly, absolutely, while we're here, you follow this like nobody else. What's been on your radar this year? Who should we be watching? What's shocked you?
You're excited about?
Oh? I mean last night? Of course, the upset with Alcaraz was just I challenge anybody who had that on their Bengo card.
Please tell me.
I certainly did not see.
That coming, especially from I'll say his name again if you guys hadn't heard it before, Bodic van Essential from the Netherlands. This guy's had a horrible year, was contemplating retiring going into this tournament, and man, I hope this helps him turn it around. You know, he was a top almost twenty player a couple of years ago, so what a win for him, even if his face doesn't show it. He's one of those guys who doesn't really give you a whole lot to work with. But that
was fascinating last night. A lot of great Americans in action today. I'm gonna try to see Shelton and Tiafo after this.
Who do you think he's gonna win that match?
Oh?
Man?
I mean, I think Ben has a bit more firepower coming into it. But Tiafo has really turned his season around when he got a new coach in the middle of the year, and just love to see that. You know, He's really had a tough time since he was in the semis here a couple of years ago and just has had a bit of a lack luster result since then.
That's when he lost to Alcarez.
Yes, I mean that was an incredible match and may broke into the top ten then and just has fallen a bit by the wayside since then. But he had a great run up to this tournament, reaching the finals in Cincinnati. This could be really huge for him, so, I I mean, look, you have you love to see any American win though.
Right on the women's side of thing, is it all about Cocoa, I.
Would say, it's a you know, it's really Sablanca's tournament to lose, and she's gonna be playing later tonight. I think, you know, she's really the big favorite right now. Would not be surprising to see the two of them make another deep run like they did last year. Uh yeah, I mean I hate to see Rebaka to pull out again. This is the number four player in the world and
who's really just struggled with her health so much. I mean, this is like what the at least eighth tournament she's pulled out of this year because of some kind of injury or illness, and I just hope that whatever's going on with her gets better because she when she is playing, she is unstoppable. So it's just it's really hard to see.
I am just thirty seconds. Is there anybody out there that you see is possibly like another Serena or something. I hate to say that because I feel like there are athletes like that that are you know, once in a generation or something, But I don't know.
I mean, it's so much pressure.
I mean, of course, like Cooco would be like the obvious candidate to say that right now, just because of her age, and what she's already accomplished. But you know, I love her attitude about it. I think, you know, she still recognizes there's so much improvement to be done and she's taking the steps. And I love her coach too. So Brad Gilbert, do you hear me?
Big fan?
All right?
Good stuff? As always, she's got some fun things on social media. We're gonna talk about that maybe with John Wortheim a little bit later on. So good. This is a tradition and annual tradition, and we always look forward to Molly Heanks find hey you watching Molly Smith economics thateer at Bloomberg News on site with us here at the US Open.
Okay, from tennis to the NFL. You recall earlier this week, Carol. NFL voters owners voted to allow private equity firms to buy stakes in their franchises. It's a move expected to attract billions in fresh capital while boosting team valuations that I mean, come on, had already been surging.
Yeah, absolutely, private equity is interested folks in another area as well other stuff. In a Bloomberg Business Week story, Bloomberg's Ira Boodway writes about how private equity has set its sites on the thirty billion dollar youth sports industry, which is like whoa here with more in a story. It's also a personal story. Is Bloomberg News Business of Sports reporter Ira Budway. He's back at our Bloomberg Studio, Interactive Broker Studio, back at Bloomberg headquarters.
Iira, good to have you with us this afternoon. Can you start with the personal angle? You your personal connection to this story?
Yeah, I mean, I don't know what you guys are doing this weekend, but I will be watching my daughter play soccer in a tournament.
And that's what I do.
With most of my weekends, watch one of my two kids play baseball or soccer, one of the sports they play. So this story kind of springs from my own experience.
I was up in Cooperstown this summer watching my twelve year old some play baseball at one of these tournaments that brings in thousands of twelve year olds every summer, and the other tournament down the road, Cooperstown All Star Village just so happens to have been bought recently by David Blitzer and Josh Harris to private equity billionaires who have formed a company with multiple leagues and tournaments and camps that they call unrivaled sports, and they're part of
this big wave of new investment and consolidation in the industry.
Can I say that? When I first read your headline, I'm like, only because private equity and I think about their ownership of veterinarians and vets. I think about healthcare, like, we've got the stories out there, right of private equity comes in and it doesn't always go so well. So tell us about the impact. What are they doing and are they doing this about you know, juicing returns for investors or that's really not the case here?
Yeah, you know, that was kind of what I wanted to know, you know, was this another sort of nursing homes and real estate and all these things that private equity has come in and arguably made things worse for consumers? Is that what we're going to get here? And and in youth sports there's a particular problem already of it being expensive and exclusive and pressurized and not really about sort of the fund and the social emotion, social and emotional learning that you want to get out of it
for kids. So that was what I brought to it. I wanted to kind of hear their case for what they plan to do. In the case of Unrivaled, you know, I think it calling it private equity is maybe a little bit unfair because these are investments where they didn't raise a fund and there's no promised exit or return, and they plan to hold them, they say, for a
long time. So what they want to do at Unrivaled, with their various assets is expand they base going to bring in capital and talent and make them bigger and better. And instead of maybe a program that serves four hundred kids, they want to make it serve eight hundred kids. So in the case of Cooperstown All Star Village, they bought another sixty six acres next to their site in Onlyonta, New York, and they're going to double it, you know, over time. So that's what they say they're about in
this case. But they are also not the only ones getting into the business and private equity, and some of these are your traditional private equity firms that you know need to seek an exit and maximize profit.
Hey, let's take a step back here and sort of like help explain to us in the next minute that we have or two minutes we have with you how we got to this place with youth sports. I mean, I thought youth sports a few generations ago were about kicking the ball around, building team building. Maybe you know a dad is one of the coaches on the team, or a mom as a coach on one of the team. When did money become such a big part of it.
It's been a few forces working together. I think part of it is just social pressures have taken both the unsupervised sport away. We just don't allow kids to do
that kind of thing anymore. And you know, two parents working the dad volunteer coach is also increasingly untenable, and so you've got in their place these travel teams that are professionally coached, and then you have just this desire to get kids scholarships or into elite schools, and so sports have become this sort of less about what you're doing right now and how you're enjoying it, and more about how it helps you get to that brass ring
or that next step. And that means that parents are willing to spend on coaching and on equipment and on travel and everything else. And so that has made it a rather than you know, recreation a business.
Hey, just real quickly, just got about thirty seconds. My concern is that money, once again is going to make it these kind of opportunities for those who can afford it and then cut out those where sometimes someone who is from a poorer background, to be quite blunt, had an opportunity to rise up courtesy of sports just quickly.
Yeah, I mean this is not a good way to develop and identify talent, to use basically wealth as a way to find the kids who get to play. So just in terms of you know, competing, you really want to expand access and not make it more exclusive.
Well it's a great read. There's so much fun detail in there, and it's like one of those who knew that this was going on, although it doesn't surprise me.
Hey, we're private equity. We'll find a way, Yes, our a good way.
Business of Sports reporter at Bloomberg News. Check out his Bloomberg Business Week story at Bloomberg dot com and on Bloomberg Terminal.
You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from two to five pm Eastern. Listen on applecar Play and then brout Auto with a Bloomberg Business app or watch US live on YouTube.
US Open has always been a place to see and be seen in a big way if you just check out some of those at the court side. And I know when we go to watch matches or over the past years, especially if you do a night match, a really popular one, a big one, the cameras will move around and all of a sudden you're seeing, you know, a celeb.
There's always know where the celebs are sitting, don't they.
Yeah, and you know how many times they've come on US zero. That's the way it rolls. It's okay, I'm good with that.
With that, Hey, we actually know a little bit about this because our own Bloomberg New senior reporter Jillian Tan, who is a fan of tennis, plays tennis. She's back here at the US Open. She wrote about what is the hottest celebrity ticket out there right now? Jillian, good to see you, welcome.
Yeah, thanks for having me.
Okay, So before we get to who's been here, you know, which include Jessica Biel, Questlow, Alec Baldwin and Moore, how do celebrities get connected with seats here?
So I think the whole thing, right, it's a whole thing right now, everyone sort of you know, talks to their own team, speaks to their agents. The agents put an ask into the USTA and there are just so many sponsors here. So if the USTA President box is full, there's like mowatt is that how you pronounce it? Proet It depends depends on if you or America Emira. You've got Polo, Ralph Lauren, but doebal Tequila. Everyone's just scattered
around Arthur ash Stadium. So John Rahm, the live golfer, his live golf team is sponsored by this tequila brown so he rocked in on Monday Tuesday. Everyone just sort of you know, calls, makes the ask and then shows up when the sponsors can fit them in.
So they're not buying tickets, No, these.
Are all free tickets.
Come on, so the tickets? Why aren't they paying?
What about us? Please?
Wait?
Has tennis always been so popular among celebrities?
So right now you know that the view is that there's like a cultural ape sorry boutman voice challenges. The movie starring Zendaya grossed ninety four million this year, so that's you know, been huge for tennis. But during the pandemic, there was just a huge boost and amateur players, not only in the US but just globally, so that there's just a lot of attention and on the sport luxury brands have started to capitalize on it. You've seen Yanixenner
the world number one. He's, you know, an ambassador for Gucci. You've got Alcoraz who unfortunately lost last night. He's an ambassador of Louis Vuitton. So is Naomi Osaka. So a lot of these folks are building their brands outside the court and people are paying attention.
It seems like other sports like basketball have really in the past attracted this court side celebrity. Yeah, is it tennis a hoter ticket now?
Arguably so, especially because there's only fourteen days here at Arthur ash right, So basketball we're looking to it. There's forty one home games per team. That's so many that you know, celebrities can pop in nix and nets, give jay Z high fives and his Empire state of Mind hit. But no, now the basketball players are the ones that are court side here.
Well, you mentioned jay Z, I mean didn't they Also in terms of the USTA leaning on culture, in terms of I think they've got a new theme song and they tell us a little bit about that how they are embracing kind of the celebrity moment.
Yeah, so they understand that they can leverage celebrities and sort of the pop culture interest to enhance, you know, the US Open, extend the reach of the tournament. So they actually teamed up with Alicia Keys' musical Hell's Kitchen to like establish a brand new theme song, which I think we're hearing it changes of ends and at other times and on ESPN actually as well.
And they play music in between right like when there's breaks in terms of the matches, So there is kind of a fun party atmosphere.
Yeah, there's a party atmosphere. The DJs, you know, DJing the tracks and that's leading to you know, unique moments. I think there was a moment in twenty fifteen where Jimmy Fallon and Justin Ti Blake dance to Beyonce's All the Single Ladies, and the USCA team was saying that was the content piece that went the furthest in social media.
Well was stun natural.
They were just like, you know, all the single.
Ladies, Wait, who was that? That was justin Timberland And don't you remember the SNL skit, right, that's the one. We're just timberly dressed up in the Beyonce like leotard.
And I do not remember that one really.
Yeah, so I don't know Oasis, but you.
Don't know that you should go certain that.
How do they manage the celebrities, because as you said, it's fourteen days limited seats, there are those matches you know, celebrities want to be at and be seen at. How does the USTA manage that?
So interestingly, they were saying opening night and the finals weekend is when it's usually been you know, the most interest, but now it's staggered out throughout the whole fourteen days. They actually have hired an out like they outsource it because it's just gotten too much. But yeah, they outsource it.
And they like, you deal with it.
Yeah, you you deal with it and then you know from there on. But interestingly, last year was a record, It was more than four hundred celebrities and this year they expect to break that record.
I mean, how great is this for the USTA's business.
I mean it's great. It's free publicity, Like, how what could they ask more?
Especially if you have some of these celebs with their own TikTok and Instagram accounts posting where they are what they're doing. You can only imagine what that does for demand for tickets.
Yeah, or even the USBA posts it themselves right, like they can capture you know, Lynn Manuel Maranda like watching a point open mouthed like.
Yeah right, It's like pretty incredible.
It's like locked in.
I have found myself like when watching a certain match or I think I remember it was like Gail King and I don't remember whether it was justin Bieber or something, and it's just like kind of cool as you're watching in the camera and the camera scans. I am also curious about the celebs are really cool, but I'm also curious about you know, JP Morgan's been a big sponsor for a long time. I mean, the financial world really loves this thing too.
Yeah, so we'll see them, you know, they're here. They're here quietly these few weeks, Like some have suites for the entire two weeks, but most of them will be here. Semi finals next Friday, Women's final on Saturday, which's presented by Japenwrgan I believe, yeah, and then Sundays the men's final.
Okay, so there are some celebrities who are known kind of fanatics men still are still. Yeah, he's like I've seen I mean i've seen him a like exhibition matches that I've gone to and in Manhattan, like you know, fifteen years ago and he's in court side. Yeah, like to he'll got as much tennis.
As he's a huge Rapa fan as well, which is I guess sad for him because the guy's not here. But yeah, he was at Wimbledon this year. I think he was a Roland Garros like he's everywhere, He there everywhere. And then Anna Wintour is obviously huge tennis fan.
Well that's who I was thinking of, right, she's always and who she's got sitting next to her, who met you know, it's just kind of fascinating. It's interesting too, and a year where we thought maybe without Serena it would be very different. But I was kind of floored when we got here, or at least when I got here yesterday, like how crowded it was and how much excitement there was, and just the matches, even the side matches,
like people are really exciting. As you said, you know, there's some younger players, maybe not all household names, but people are really into it, the celebrities as well.
Yeah, the grounds are really full. There are a ton of Americans doing extremely well both on the men's and women's side. So you know, this is a great time, great time to be at the rside.
Friend, what's a box go for? Like? So the celebrities you are in a box or what are those seats that they're getting?
So the ones they would have to pay? What the box is a different thing, but for quot side seats. I looked up yes today to buy a comparative seat in the lower bowl. I think it was like fifteen to seventeen hundred yesterday in the day session and probably over two thousand for the night session.
And this is you know, the first week of the tournaments. We're not even talking you know, getting to the finals.
Which can be ten thousand for like a very very quote side seat.
Oh, it's just unbelievable. And you know, again that money not necessarily going to the USTA. This is on the this is being resold.
We had the numbers yesterday will racale numbers, but the USA does sell some seats for ten thousand.
You know, I was thinking about it's funny because we realize that demand. That's always how it works, right, It always comes down to that. As we said earlier, you know, the USTA has got to love like the celebrities and
whether they're posting and so on and so forth. But because they outsourced, like the managing of it, I guess they're comfortable to talk about it because I always think when there's an event and there's celebrities involved, people are like very sketchy, not sketchy, but just delicate and how they manage it.
Yeah, I think this is different because the celebrities are here and part of you know, the free ticket is the they kind of agree to you know, the TV knows where they are, the jump, the jumbo tron literally scants them the change of bends and they'll like, you know, Tay Diggs, I think was he last night and he gave the camera away like you know, it's all quick pro quo a little bit.
Yeah, it is very much.
I wonder if there are also like celebrities incognito who don't want to be seen, They want to come here and they just want to watch tennis and not be Bob.
That would be Leonardo DiCaprio, who always tries to hide.
Yeah.
We saw him last year for Yet, which sweet he was in, but he was wearing a mask and then he eventually took it up.
I think there's a picture that he's actually I'm like, and I was looking at the picture of like, where is he in this picture?
Actually?
Look at that?
Do you see that he actually is in this picture?
Zach Brath? But I don't see Leonardo. Oh there he is. Yeah, his hands in front of his face.
He's a little bit inno.
Yeah, he just wants to watch him. You know. He could do that though not in the Celebt box.
Right, Yes, he could do it in the stands, and then nobody would.
Know until until you're like the person sitting right next to him.
Until you're like, yeah, you're next to him, and you're like, what's going on with that? Jillian Tan, thank you so much. Really love it. This is so much fun. She is our senior reporter at Bloomberg News. Check out our story on the Bloomberg and at Bloomberg dot com. We got a headline crossing when it comes to Tesla and it's robotaxi plans.
Yeah, the company aims to unveil it's highly anticipated robotaxi at an event at Warner Brothers Discovery's movie studio in the Los Angeles area. This is according to people familiar with the matter. The EV company targeting and reveal of the purpose built Robotaxi on October tenth at the Burbank facility, the people said, asking not to be identified because the information is private. Remember, Carol, this was supposed to happen
in August. We broke the news a couple months ago that it wasn't happening in August, now happening in October.
The famous Lot, Batman movies, TV show Friends have all been filmed there. So we'll see what Elon Musk brings to us. All right, you are listening and watching Bloomberg Radio.
You're listening to the Bloomberg Business Week podcast. Listen live each weekday starting in two pm Eastern on applecar Play and Androyd Auto with the Bloomberg Business End. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa play Bloomberg eleven thirty buckle.
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All right, everybody, we are just about twenty minutes away from the closing pal getting ready to wrap up the day, the week, the month of August and the first week of the US Open and the first week of the US Open, which is where we find ourselves. So let's get to it, because it's been really fun for us to have guests who yeah, can talk about the Bloomberg world and treating and investing, but also love tennis.
And one of the guest is here with us right now. David Dits. He joins us each and every year from the US Open. He's managing principal and senior investment strategist that Pee Pack of private wealth management eleven point five billion dollars in assets under management. He took a break from Arthur ash Stadium where he was watching.
He gets the award for the day. He gets the award.
By the way, no doubt Shelton won. The first set, is down two to one.
Okay, So I have the markets up on my screen and Tim.
As the US That's why I'm using your screen for the market. Yeah, David, how are you excellent? So happy to be out here and great to be with you guys, even though you're missing a little bit of tennis, you're happy to be here.
We saw a wonderful match Coco one down the first set, came back to win for three sets. We're big Cocoa fans. We're big Ben Shelton fans too, so we'll see how that works out.
What happened with her serve at the end of the match, those two double faults in a row in matchpoint, you.
Know, the other night she had nine double faults and her server was really struggling with it with her uh, and then she practiced a lot.
She said after her win. I think she did better today. She came to when she had to.
Yeah, sometimes I have, like I guess, a bad day or a bad couple of days. But she but she definitely rallied and came back in a big way.
Her opponent was hitting all out. I've never seen just hard shots, so I actually think she was lucky to pull out the win.
What good stuff, Ryan, It's been great tennis here.
You know, we keep asking everybody, right because it's always been for so many years about Serena. What what do you think, as you know, obviously every sport has different cycles, it evolves. Do players come in, How are you thinking about kind of some of the younger, newer players.
Well, I mean, you know, Coco is only twenty, so I mean maybe she's got that the next William's sister, right, And of course, you know, I think Ben Shelton's only about twenty one years old too. So we've got some young and up and coming stars and it just takes a couple to reignite the spirit that we saw with the Williams here in tennis, of course, with Tiger over and golf. So that's what we're hoping for.
I think it's happening already.
I really think you're right, you get this better than I do.
It just feels like it, I mean, with this with these you know, for men's tennis, the Americans have been absent from it for such a long period of time, and to have a couple of Americans who are so strong right now is big. On the men's side, the women's side, I feel like never took a break after after Serena. Coco was there.
Yeah, the men do need to pick up the pace. The last time a man won here from the United States is twenty one years ago.
Wow, And so we need to get back on our horse honor those days of you know, Michael Chang, Jim Currier, Andre Agassi, Pete Sampras. That was an era for a while there.
We won eight out of eleven years, and now we've had this dry spell. So let's hope for the some of these younger guys.
Matt can row Connor, I'm going way.
Back, just saying we talk markets a little bit.
Let's go back. Yeah, let's let's talk markets. It's interesting, it's mellow today. I'm not surprised right ahead of the Labor Day holiday. I don't know this market feel okay to you. Do you feel like it's going to push lower, push higher, or mark time maybe until we get through the election or through the first FED meeting.
Well, I mean, you know, in the beginning of the month, of course, we had that three percent sell off, Japan fell twelve percent.
Some people really panic.
There is a big People were saying, what we need emergency rate moves, several of them fifty whatever, seventy five bases points.
People were ready to jump off buildings.
That was crazy, And now even the Nasdaq may end up August in the green, definitely the S and P in the Dow. So it's like a whole different end of the month here.
But how do you make sense of that? That's a big swinging sentiment.
Yeah, so you know, I think I think the number one thing is basically jerm Pile put his pull in the sand, said, mission accomplished on inflation. We're focused on the labor market, We're focused on growth. Time is here for a rate cut? And I'm looking at it. I'm saying, well, you know, okay, we're still have positive job creation. Earning should be up as much as fourteen percent next year. Interest rates are coming down. You're getting less than four percent in.
The ten year.
Do we need all the physical stimulus? But the fact the matter is every day people like me come to the office say what can I get on the ten year treasury? What can I get in the market? And is that those interests rates to go down? You're going to be pushing into the market, and of course you've got positive growth with earnings.
So is that where the trillions of dollars on the sidelines in money markets.
Go well, you know they talk about six billion in money market funds that you know, six trillion, six trillion exactly, And of course everyone said, what I all.
Of a sudden dreamed in a big way. Did I miss the headline? I know I've had some days off now, just kid, it's.
A fossil situation.
But seriously, I mean, so people are talking about a lot of people have that money in the money markets. They're getting five percent. Why take the volatility in all the house with the stock and you can get that five percent. But now, of course, as interest rates start to come down where already say now the two year treasury is almost on parody now with the ten year under four percent, and so eventually people are going to say, honey, I think we have to do something because we can
no longer get to five percent. Let's get into some dividend paying stocks, and I think that could provide a tailwork. Having said that that full six troyes will not move into stocks, there's a lot of money that will stay in money market no matter what.
Let's talk Let's talk about some stocks that you like. Boeing is one. We talked about it a lot, and still the woes stocks down almost thirty four percent so far this year. I mean, we could go into all the problems, but the latest is getting the astronauts, you know, back out of the space station.
They're there till twenty twenty five.
It was supposed to be. Was it a couple of days? Why Boeing.
Yes, there's a lot of moving pieces here. But you know, basically, you've got to doopoly in the world. Practically, between Boeing and Airbus, they control practically the whole commercial fleet. And one thing we know is going to happen over the next twenty thirty years is the demand for aviation services is going to outpace GDP. And really, you got that duopoly,
so you got one or the other. What I keep looking at is the orders that Boeing has over five hundred billion dollars of orders that show's confidence among the world to airlines.
Is the confidence or those orders have already been placed there?
You know?
My understanding is Airbus can't come in the end of the day. People can't say I understand that, But I wonder about new orders. Is Boeing gonna have some problems down the road?
Well, again, more problems.
The demand for aviation is there if they just fulfill the existing orders or in good shape. And the question is where else do you go? Okay, Boeing has had safety problems, no question about it. But does that mean you go with a lesser light, a lesser name outside this country, Like you.
Don't mean Pardier for example, put but they don't even have a plane that matches at seven thirty seven or an A three twenty. I mean that that narrow body market is dominated by airplay.
So we've got new management over at Boeing and to satisfy the FAA on the safety issues, and you've got to get that production up in your good shape.
Thirty seconds you talk new management Intel, you like news today, maybe splitting off its foundry. They're working with their bankers to kind of figure out what's next. Maybe it needs new management. What do you like about this company? You gotta be quick about twenty five seconds?
Yeah, absolutely, So it's still number one in terms of chips for PCs and servers right. Also, it's almost like an US institution for national security. We want to bring production here. To not support Intel in his time of need by the US government would be the wrong thing. They're getting serious. The stockers down sixty percent of the date,
They're down twenty eight percent this month. They're up about nine percent today on news that they're getting serious about perhaps splitting apart, the company backing off some of the capital expenditures, getting back on track, the American government fully behind them.
We got to run. I have a great weekend.
Thank you.
David Dee's over at Peapac Private Wealth Management. This is Bloomberg.
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