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.
Jam in a little pop pana talk Man, I love that song. Kind of takes me back.
You are listening and watching Bloomberg Business Week and talking about hitting.
With your best shot.
I feel like, man, the jobs report this morning just kind of firing on all cylinders.
Would you call it a Goldilocks report?
Well, exactly like.
I feel like it kind of checked all the boxes that the Fed needed to do. And so let's just get right to it. Because our own Molly Smith, she's Bloomberg News Economics editor. She's a fan of tennis, and we're going to talk about that in just a moment.
We think she's actually off today, Are you off?
No, I've worked. I actually went on the Bloomberg Markets Show this morning and they said that for every time someone mentioned it was a Goldilocks report, that added to the shot counts. So in case anybody is keeping track.
It's like it's a sip of honey for you, I.
Will take that.
It's like the AI shot game and then the Goldilocks economy shot game. Let's talk though the jobs report and we say goldilocks because it kind of right.
It's not falling apart, but it's easing. So walk us through it. What was important?
No, I think that's exactly the way that we've been describing it to just like this. Actually, my editor came up with us when I really like this a controlled cooling of the job market. Yeah, so we've got a moderation in hiring, which has been the continuing trend. And I wouldn't be surprised to see if the print that came in today was revised lower a month later, because that seems to be happening just about every month that
we get a jobs report. We also saw slowly wage gains and higher unemployment rate, but for what we would call a quote good reason, because it reflected more people coming into the labor force, so greater participation is.
You know, I heard Mike McKee, International Economics and Policy correspondent on Surveillance talking about this this morning. The bankruptcy of the Yellow Trucking Company thirty thousand jobs not included in this month's report as a result of what we saw there, how should we read into those one off scenarios, because when we learned of Yellows bankruptcy, we also knew that thanks to the economic data, there are a lot of trucking jobs out there, or these uneployed truckers to go get they.
Very well could have been scooped up already. And you know, speaking of one officer, I mean it's hard to tell. But how however long the Hollywood strikes are going to continue. That also subtracted from payrolls quite a bit, so that one eighty seven thousand number for the added jobs in the month would have been even stronger if not for
the effect of those two events. Yeah, I mean, it's it's we saw really a pretty broadcase, broad based gain, especially though in the service producing industries, in healthcare and you know some of these industries where we've had a lot a lot of those labor shortages. So still continuing to climb back, which is a good sign.
What I thought was really wild and cool and interesting is people coming back to the workforce, right the labor participation rate and also what they talked about, was it the participation rate for prime age workers in terms of it rebounding, That to me is significant. The people on the sidelines who were like, I'm out are all a sudden back in.
Yeah, it took them some time. I don't know what these people have been doing, and we've all obviously been working, but they're back now, and a lot of them are back so and that's really helping to ease the wage pressure picture a lot so more of the when we hear supply and demand of labor coming back into balance, that's where you see it happening.
So if you're a Federal Reserve Chair J. Powell and you're sitting there at your Bloomberg terminal at eight twenty nine fifty nine this morning, waiting for those prayers, saying your prayers, waiting for those numbers to come.
Across A thirty twenty nine, he is like, I'm out to the beach.
I'm good here today.
These numbers hit. What are you thinking?
I think it's just I don't know what more you could really ask for. You know, this is like showing exactly the soft landing case that he's been preaching would be possible and would have has been his base case all along. So I mean I'm obviously, you know, you can't take too much of a victory lab and they're going to be careful not to. But we'll hear from more FED speakers next week and then predictably, the call right now is that the September decision is going to be to leave rates unchanged.
Help me, though, because I'm looking at a two year note that definitely popped up right. There's my charts all along the Yelk curve, the five and the two and the two year wented a yield to four point eighty six. I've got a ten yere at four one sixty seven, and we definitely did see a bit of a pop in the equities and they pulled off the higher rate moves, though, is telling.
Us what I mean? I think that you still have November on the table. That's you can't be ruled out. Jamie. That very clear at Jackson Hole last week that they have to keep their options open. And I think most economists right now would tell you that November is very much a live meeting, even though September more or less seems locked in to hold steady and.
In terms of the market pricing and rate cuts for next year, still happening.
Maybe be a bit less so, but yeah, I mean the moves today just very much showing September being unchanged pretty solid before you, Maerica.
One more, okay, hire for longer? How long? How long does that mean?
Don't we all want to know? Tim? If I need answer to that, I wouldn't be sitting here.
No, actually.
She would be here, she wouldn't be talking to She would actually be like a box.
Right.
The President's the President's suite.
That sounds nice.
One more just to attack on to Tim, what's the next focal point in terms of economic data points?
Oh goodness, not a whole lot going on next week. It's really more in the FED speaker front, so hearing from a few of them next week, and then they're in blackout before the September fo MC meeting. So it would be interesting to see just you know, we've seen some of these factions coming about in the committee of like where the doves are, where the hawks are, how people are interpreting the data. So we'll give it a nice clear picture next week of like where everyone stands.
Oh okay, well, Molly, I mean fifty weeks a year, you know, I see you around the office, and we're just basically we're just doing a countdown to these two weeks. Yes, you told me before the show, this has been like the best week of your life running around the US Open. What have you seen? What are you excited to see tonight? Who's on your who's on your list of winners?
I really have had the best week. Nothing can take away from this. Have been absolutely glowing.
So do you love the sport?
I do. I've played forever. I used to teach I watch. I mean, the reason why I got into journalism. I was hoping to be a tennis commentator more so than an economy one. But I've got a nice.
Come all right, we'll be right now. We got about seven minutes where you can be a tennis commentator.
Right now, we'll waste it, Okay. I just came from before I came over here was watching the top men's doubles team in the world. I think they're doing well up in the third set right now. This is Neil Scubsky and cool and Woolcough. Those are the two names sometimes I get tripped up on. But they're playing a Colombian team and it is fiery in there. Some of the South American crowds. You know it is a Seahart
producer right now, he's pomped. It is crazy. I think the best match I've probably ever seen in my twenty something years of coming to the US Open might have been yesterday when I watched a Brazilian woman play an American woman in the singles on Court seventeen, which is one of the smaller stadium courts. But the atmosphere is electric and you better believe the Brazilians were there in force. Obviously the Americans were as well. It was fire. This was Taylor Townsend and Beatrice Hadadmia.
Fire meaning what the strength, the force, the power, what I mean, the sheer game of course, the shop making also really rare to see two lefties going at it, so that was a lot of fun and just you know, I think it also for a lot of people who come here and maybe you're not really familiar with tennis, you don't watch it the rest of the fifty weeks of the year, like I do, you think of it as maybe a more quote gentlemanly sport.
You know, it's quiet, the little golf clap. This was like a soccer match or football, but you know it was. It was insane in there, like the people were out on their up, on their feet after every point.
Do you like the first week or the second week better?
First?
I do too well, doubtedly, because I mean I think the biggest secret of coming to the US Open is like stay out of ash, yes, and just go around to the courts. The outside courts, you see the best tennis players in the world. You can get up close to them. Sometimes you walk up to courts people are in a third set or a fifth set, You've never heard of them, and you literally get to be in the front row and see the best tennis you've ever seen.
Which speaks to what we talked about with the team over at ay IBM in terms of what they are doing is a lot of the other courts don't get a lot of attention, but they're taking now the footage and they're creating AI generated commentary and that they're finding people want that, they want to know what's going on and on some of the other courts around here.
I think what a lot of casual tennis fans probably also don't have a great grasp of is just how good you have to be to part of my language, but suck at the US Open. Like, if you're a singles player and you lose in the first round, you still were among the top one hundred and twenty eight players in the world. A lot of them had to go through several rounds of qualifying to get in there.
You're still going to see amazing tennis. And it's a lot better than, like you said, Tim going into ash and seeing a blowout in the first week.
Can we talk women, yes, because now that all right, Venus was here but she's out unfortunately.
And then Serena we know not here.
I think I saw her last match last year, but we never know right whether or not she could come back.
Serene Aving, Yeah, I don't know. She's had her second kid. A couple of weeks.
She did just have her second kid. What are we looking forward to in terms of the next generation when it comes to women, We know that there's already a few names out there.
Yeah, I mean, I think like there's it's really never been a better time in recent years to be a fan of Americans tennis, and the women are really doing so well on the front of the men as well. But I'm really excited about Cocoa Goff and Jess Pigula like everyone else. I saw them play in doubles together the other day. Actually, I think they were the only players in the world right now where we are top ten in singles and doubles. Each of them really impressive,
not easy to do. So they are really just like riding a ton of momentum from the summer hardcore season into the US Open. The other top three seeds are also doing incredibly well on the single side, so it's not I haven't been too many big upsets yet. I think most of the women are really it's it's been a I'm just having a.
Blast watching them, you know, it's pretty amazing. You mentioned Jess Pagoula, she's also doing mixed doubles. Like, she's not playing mixed doubles today. She like, wait, wasn't she just playing last night? And ash, why is she out here today? And then I saw it was mixed doubles. She's doing everything.
Yeah, and you know some players do that. It's I think, you know, I've listened to what some of the commentators have to say about it. A lot of them will tell you, you know, like great to play doubles, you know, really helps your singles game gets you at the net a lot more your reaction time, just getting more reps in in general, but the mixed being maybe that's a little too much, especially if you're a serious contender in the second week of the singles draw.
But the problem is here in New York, some of these matches don't end until one or two in the morning, right, and then you're you're the problem for the player, and it's right for the tame and some of those players if they have a doubles or a mixed doubles match the next two day.
Ben Sholton today too, doing a doubleheader.
It's pretty incredible. How old are these guys are? They're young?
Oh yeah, Ben's twenty, so you.
Can do that.
Remember doing all nighters getting out the same thing is twenty, Jess is twenty seven, Cocos nineteen, we bet it.
Serena having her second baby. There is this trend and you write about it too. Have these women who've had babies and they're coming back.
I think it's great. Hopefully you know we're seeing that. Also to tie in the economy angle, my boss would love that in the women's participation rate, that more women coming back to work as well, so obviously this kind of work being much more demanding after you've gone through labor. But it's it's amazing to see Carolyn Woziaki, he's playing tonight. Alina Spidelina is still alive. It's it's amazing.
Yeah. Wassniyaki's match earlier this week was amazing.
Yeah, to see her beat Patrick kavittov A, you know, a top ten or so player in straight sets. I mean she's back. That was incredible to see.
Yeah, incredible journey. I mean not just having a couple of kids, but also her battle with her health issues that she's been battling over the last few years. I mean, the game she played the other night was incredible. Looking forward to seeing her to night as well.
Speaking of battles, just thirty seconds left here. The pay issues.
I know, the USTA has done a lot in terms of the Open, but there's still some work.
To be done.
The thing that people have to keep in mind is that it's the WTA. The Women's store and the men's Tour are two separate bodies. They have their own prize pools they dictate or yeah, their prize money, they dictate that separately. So optically, yeah, it doesn't look great when you're at a tournament that they award, let you know, a different amount to each player. But it's not as if one governing body is deciding that the women are earning less than the men.
All right, we're gonta leave it there.
Oh wait, it's the Tennis channel calling. Oh wait, it's ESPN calling. Wait it's CBS Sports calling.
You were really good. That was really fun.
Let's stay here all day.
ESPN's just right over there. Just walk on over, and.
The economics editors, sports commentator a little bit of that.
She does it all. Mollie Smith, Thanks so much. Enjoy the rest of it. You can tell you're having a ball.
Molly Smith here Bloomberg News Economics editor on site with us at the Open.
We're just getting started on this. It's Friday. Can you tell stick around? Everybody's coming back. This is Bloomberg.
You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App, or watch us live on YouTube.
Carol Masser along with Tim Stenoviek live at the US open here in Flushing Meadows, New York, of course, just.
Outside Arthur Ash.
We're going to get back to tennis in just a moment. Although I feel like Molly, what one incredible job of kind of melding the job market the economy and then of course talking tennis here.
Right now that we need to do a little bit more on the job market.
Yeah, let's talk about it. It was a deployment report that we got today that showed the US hiring picked up in August, wage growth slowed. It offered a mixed picture of both resilience and moderation when comes to the labor market. Pretty much what Jay Powell wants to see.
Yeah, he's got to be pretty happy and feeling pretty confident.
Well with us, and to give us an idea of what she's seeing when it comes to jobs here in the US. We are very pleased to go back with us. Amy Glazer, senior vice president at the staffing and Recruiting agency at DECO. She joins us on Zoom from Florida this afternoon. Amy, how are.
You hey, Good morning, Good afternoons. Then I'm great.
Yeah, we're doing pretty well here in six It's good to have you with us this afternoon. So what were your big takeaways from the employment report versus what you're seeing on at a deco.
Yeah, so I think what we're still seeing it's definitely a talent driven market. Although you did the unemployment tick up thirty basis points. You know, that being offset by the labor of participation rate really just continues to send mixed messages.
But those sectors that showed us.
Growing or what we're seeing, hospitality still growing in demand. Healthcare is hot hot right now, another you know, some of the other industries pulling a little bit, but really looking to surge ahead again in September as holiday hiring gets hot and heavy.
You know, I'm really interested in what you said about this being a talent driven economy. Is carently I've talked about over the last few months. It really seems like, I don't know, Carol the uh. There's been a shift with when companies demanding workers come back to the office.
It's one that you and I predicted that the work from home thing wouldn't last forever, and as soon as there was this imbalance between supply and demand, as soon as that eased, we would start to see companies wanting their employees back in the office, Amy, what makes you say that it's still a talent driven.
You know, I think as long as you've got one and a half openings for every single job seeker, they still have lots of opportunity and are willing to kind of add for what they're looking for. And those employers that are offering flexibility and being agile right now are
the ones that are really winning. We are seeing the return to the office, but we're also surprisingly seeing a stronger appetite from a lot of job seekers to return to the office, especially if that's in that kind of hybrid type of environment.
Hey, so, Amy, give us a reminder for our audience about the type of you do staff and you do recruiting.
What kind of jobs typically? Is it white collar, is it office?
What kind of jobs particularly are you working or does it cross a lot of different worlds.
So I'm part of our general staffing sector, so it crosses a little bit of everything from blue collar to white collar, professional services, healthcare, creative and marketing. So we pretty much run the gamut of temporary to full time permanent placement.
So we do have.
The opportunity to see a really large spectrum of items going on in the market out.
There, all right, So where would you see would you say in particular, because it sounds like you are pretty optimistic and that the worker is still kind of in the driver's seat, or those job seekers are still in the driver's seat.
Where in particular are you seeing strength?
And I'm also curious about older workers because I feel like that labor participation rate was also the result of maybe some workers maybe older, maybe they had some savings or maybe.
What have you.
And we're like, I didn't need to come back in now I'm coming back in and we'll find out more, I'm sure as the time goes on, But tell us about what you're seeing in that front.
Yeah, I think we're still seeing strength in healthcare. And it's funny.
I was talking to my mother last night, who retired as a nurse and actually returned to the workforce. So I think she's one out of every six of those retirees that have been considering returning.
To the workforce. And it's for a couple of different reasons.
Number one, inflation looking for ways to supplement income. But number two, a lot of folks that retired during the pandemic have really started missing that sense of purpose that you feel when you go to work every day, and that sense of community and camaraderie. So it's offering the opportunity for the retirees.
To return to the workforce.
What we are seeing is a trend for retirees is more of a part time return to the workforce. They're coming back, They're not giving up their days on the golf course. They're coming back and working a couple of days at a time or a mixed shift.
So the narrative that emerged in the last couple of years of people during the pandemic permanently removing themselves from the workforce, is that still the case or is everything that you mentioned sort of making that So it's been turned on its head.
I think it's been turned on its head a little bit. And I think, you know, inflation certainly has been driving as folks are concerned about how they're going to keep
up with their overall costs. So I think, you know, we're continuing to see a lot of creativity we were I was talking to one of my customers the other day who had found a set of school bus drivers that were willing to pick up this odd shift from midnight to five in the morning and then go drive their bus route to supplement their income.
But it was a huge.
Benefit to the employer who genuinely usually had a hard time attracting that third shift workforce. So creativity, flexibility are really the name of the game and who's going to win this moving forward?
What about wages?
Yeah, so we.
Are seeing definitely a slowdown in terms of the huge, big sign on bonuses, retention bonuses, perks that were being offered. We're seeing employers continue to put it kind of in more of that base wage rate and supplement it by non monetary perks, whether it be flexible schedules, the ability to work from home, enhanced benefits, enhance mental and well being, financial offerings. So we're seeing quite a bit of things
in that nature. We are expecting as seasonal hiring starts, there's still going to be acceleration within wages in that blue collar hourly workforce sector, especially in.
Quarter four this year.
Is it still a good time for as to ask for a raise.
It's always a good time to ask for a raise if you've got a solid reason behind it.
I think, you know, recruiting has been.
The name of the game for a long time, and employe have really settled in on retention and keeping their top talent as being a priority. So my recommendation is, if you've got the data and stats to support your request, that employer, the ROI on you is often worth a lot more of a vacancy and having to replace that cost of turnover.
Just going to say our crew, everybody's ears perked up when it's like, is this the time to ask for you?
Said?
Yes, always you got to have you.
But but having said that, it's interesting because I feel like, you know, we know employers, you know, amy want to hold on to workers and they tend to what do we call that hoarding labor hoarding, you know, holding onto workers not wanting to letting them go because the cost of finding a worker is pretty expensive. But I do also hear about this quiet quitting or you know, quietly firing, quiet firing like stuff going on so that people employers do reduce their workforces.
What are you seeing on that front?
Yeah, I think it's it just varies by employer, by sector, different portions and pockets along the along the US, those were some really big buzzwords.
We heard for the last twelve to eighteen months.
And there's not been a lot of noise, so kind of quiet on that front as well.
Okay, So I guess my last question is because I oftentimes go to that Jolts number when I'm talking about the labor force, and I always get pushback from people that say, Okay, why do you say there's one point five jobs for every you know, person out there who's looking when you know nobody's going to move from Toledo, Ohio to Florida in order to take a restaurant job, right.
I think that's where the mismatch occurs to him.
And when you look at it, there is one point five jobs, But is it in your skill set? Is it in your market? You know, we have this conversation about skill or will. Do you have the skill to do the job? Is it in your location or do you have the will and desire to move towards it or to maybe take a step down or learn a new skill. So I think that's where we still continue
to find the disparity in those numbers. And as you know, the population continues to move, it's still forcing employers to be quite flexible.
All right, We're going to leave it on that note. Listen. So good to catch up with you.
Have a great holiday weekend, so appreciate getting some time with you. Amy Glazer's senior vice president of the staffing and Recruiting Agency at Deco, joining us on zoom from Florida, So, you know, a continued strength, you know, a little.
Later in our program, we're going to be talking with the person who oversees all dining here. I'm going to ask a lot about staffing and if they've been able to get sufficient staffing here.
That's a really good point, right, I mean, because you need a lot of people to make all this stuff happen.
It's expensive here too.
You're listening to the Bloomberg Business Week podcast. Catch us live weekday afternoons from three to six Eastern on Bloomberg Radio, the Bloomberg Business app and YouTube. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa playing Bloomberg eleven thirty.
We are under an incredible blue guys right now.
Love to I know, I know, I know, such a loss, I.
Know, I know, but great music that we get to share with I know I share with my younger daughter.
You're gonna share with your kids.
I bet we already are sharing Tom Patty and a lot of music from back in the day with our kids. Don't we've got a record player.
Don't play Oh my god, don't play Barney, guys, I mean, we don't.
There's much better music to raise your kids on.
Sorry, Barney, Barney, Barney's not offended.
Hi, everyone, Welcome back to Bloomberg Business.
We Carol Master lawer Tim Stanovic on YouTube of course, streaming on Bloomberg Originals and of course on Bloomberg Radio. Here at the US Open, we want to talk about cryotherapy, a mixed reality tennis game, Espresso, martiniz NFTs. They're all here at the US Open courtesy of American Express, and we've got Shisuzuki with US VP of Global Brand, Sponsorships and Experiential Marketing at American Express, sitting right next to us.
Welcome, Welcome, thank you, thank you for having me, Thank you for having us at your party.
It's a great place to be in this week.
Well, you know, it really is.
And Tim and I talk about this as we walk around. You know, it really is an experience. It is absolutely first and foremost about the folks, the incredible athletes, the matches, but what you guys do at.
American Express really makes it a cool experience. How do you think about the event every year now?
So it's so amazing, right And to your point, certainly this is around world class athletes and the tennis, but it is there's so much more to it than that as well.
Right, it's a.
Music it's you know, they've got music, they've got food and wine festival, they've got all sorts of things. And frankly, for us at American Express, it is about that experience. It's about making the experience here even better for our card members and prospective card members, and so it's always about that like holistic experience, I mean, you know, and if we had to kind of summarize it up, we start with access to the actual tickets themselves back.
In May and June, which I understand.
So that really quick, so very quickly.
It's a great early indicator how things are going to go, and we offer that for card members. We come on site and we do some really great things experientially. Irl. We have a twenty thousand square foot fan experience over by the East Gate, and then we've got some other fun things as well. Whether that be in terms of you know, great offers or you know other things. So yeah, it's a holistic experience.
So she's I mean, no question, American Express, this is an important event to American Express. It's thirty years at the US Open. Obviously everybody knows American Express spends a lot of money on this event. But draw the line from spending money here to getting more people signing up for platinum cards.
Yeah.
I mean, at the end of the day, right, why does any brand invest in sponsorships or partnerships at all? I think at the very basic level, right, it's really about building relationships. It's building relationships with your customer base of today customer and the customer base of tomorrow, so
your prospective customers as well. And so for us, the investments that we make in a partnership, certainly like the USTA and the US Open or any other sport, music, you know, the things that we invest in it is
about that. It is about being where our card members are, where we think our prospective card members will be, and then bringing those benefits and really unique experiences to life, because at the end of the day, we want people to walk away saying gosh, like It was a great experience, but it was made even better because of right American Express in that moment or that thing or other.
Well, full transparency.
You get two AMEX members, Right, that's me than over thirty years.
I got it, like I think my last year senior year in college. I don't know when you got yours.
I got it in college.
And you know what's interesting is I think about the benefits and there's a lot of reasons why. I know it works for certainly our family, But I think about the pandemic, right, certainly impacted what you guys offered in terms of services because nobody was traveling, nobody was doing things. How do you think about coming off the pandemic, but
here we are again experiencing things. How do you continue to involve services that maybe you offer here, but it becomes a much bigger, broader thing a part of what you guys.
Do, and I mean for us, right, we have so many types of benefits, certainly even from a sponsorship's perspective of what I work on. We have incredible events all
around the globe. In fact, July, we just came back from Wimbledon, right, so we're at that Grand Slam as well, we're in all sorts of music festivals, Coachella, American Express Presents, BSD, Hyde Park too, you know, all sorts of things, and so every single one of those we I mean, we look at what is the fan base, what's the true authentic way to show up in a way to make that fans experience better.
That's that's the key.
It can't just be from an amateur point of view, has to be from that fan centric view. And then bringing those things to life.
What do you guys do though with like I think like a Taylor Swift concert which we tried to get tickets like, or so like a concert that's so popular and you know, you see it early access love using it, but sometimes it's just over like.
Yeah, it's you.
Is that enough?
And I'm sure you. Yeah, They're coming up and saying I've been with you for this many years, like how do you? How do you deal with that stuff?
I mean, listen, So, I when we think about our investments with music, it's really i'll call it a three sixty approach. So an artist like Ed Sheeran somebody who we've also worked with, right, so we've done certainly like the pre sell ticket access but then it's about things
like pop up experiences in various cities. I don't know if you remember, at the very start of his tour earlier this summer, there were a couple of cities where we had these pop up experiences and guess what he actually popped.
Up with them.
He did, like a pop up concert here in New York. For the New York one, he did a pop up concert acoustic guitar in the middle of Soho, totally unplanned by the way, we shut down the street. It was incredible, it was all over social went viral, and guess what he personally loved it so much. He did in Dallas, La went on and on, and then if you think about the length of the tour and other things, guess what.
It's the things that he's passionate about. We co create things with the artist, maybe fan centricity in mind, and that's it, right, That authenticity I think carries through for fans.
There's also this balance though, when it comes to these experiences. You want people to be able to access them, yes, but you don't want too many people there, and you mean the exclusivity parton exclusivity part, and we're seeing this play out and I know this is not your purview at annex where we're seeing this play out in airports all over the country. Absolutely, with the changing rules around airport lounges because they're just overrun with people post pandemic.
Given our demand to get out there, given our demand to travel, how do you balance it?
Yeah, I mean well, I think this event is a really great example of that we've got something for everyone, right, We've got experiences like at the Fan Experience, the first floor is completely dedicated to all fans, right, so the glow tennis, the cryo fac you don't have to be it's incredible, right Like, listen, like you think that that. Listen like elite athletes, right, Like they use that for their recovery. Well, guess what we are elite athletes. The
duration of the US Open tennis as well. And by the way, I get the question like can I do it over my makeup?
Yes?
Yes, it won't mess up your.
Now I'm like, so, just so can anybody walk in?
Anybody can walk in?
Now?
The second floor you ask about kind of like the benefits right at different levels. You know, the upstairs is for any card member, and then you get exclusives access to things like the Lavazza espresso martini or the frozen honey doo.
Right, so there's different.
And then if you think about Platinum or Centurion card members, we have the Centurion Lounge and so that's a separate area right again like.
Platinum, but you're definitely not sent do you know, just so you know, because you wouldn't be sitting here with me. You're a Centerian.
We can hook you up.
How do we get you in there? I know people, I know people, No, but it's really cool.
Like I was thinking about the list we've said mixed reality tennis GAMEE.
We talked about NFTs. Are you guys really selling NFTs?
Well, we're not selling them at all.
No.
Again, so actually the first floor the fan experience, and so it comes in the form of like a digital collectible. Okay, but like so there's one there, there's another somewhere else here on the grounds. The more you collect, the more offers and benefits it unlocks. And so you could be a non card member and still collect them. If you're a card member, it actually unlocks more benefits for you. So there's some discounts and you know what.
You have, what card you have I've heard that before. Are people you know, we talked though, you know at the you know, with the with the crypto winter and with the prices of cryptocurrencies coming down from all time highs over the last couple of years, the interest in NFTs is not what it was two years ago. Are you still seeing adoption of this?
I think that those I think there is interest right, and so I think there's you know, the creative behind the actual collectible as well. There's a story to be told there, there's a connection that we have. There's that, and then there's a mural that all fans can also participate in curating. So there's some connective dissue there. So a lot of people love the art part of it.
But for us, I think there's something interesting, right because as we think about again giving benefits and others to card members, that connective tie back to So it's not just about the collectible. If you're a card member, it unlocks something for you more benefits.
Is it more competitive than ever when it comes to having a card? I just think about the growth of cards.
The I mean it's competitive here. You have a competitor here that's a sponsor with their own lounge Yeah.
They have their own lounge. I mean, listen, for us, it's three sixty. I don't think you can walk very far.
Right.
Even the shopping bags have Amex on it. Every point of sale has Amex on We have this Amex shop right.
Over here there. Exclusive merchandise we do.
We have exclusive merchandise both in the Amex shop as well as in that car member lounge. We have a partnership with Ralph Lauren and so you can get exclusive customized merchandise from there that you can do right there, purchase it.
I've seen it. I've been like it, you've done it before.
We have, and it's really cool and it's like you see people just going in and doing it. I want to go back to something Tim said, and I think it asked or was thinking about, is just you do this And obviously you guys choose sponsorships because in some ways it's got to move the needle right or you bring in new card members. Yes, what do you see as a jump or boost? And I realized you can't probably share everything, but what kind of gains do you get games of card members?
Now?
Absolutely, I think just again going back to that high level of building relationships right, building those connections. We do see that for card members when they come out to one of our experiences, they are more likely they're more loyal and they're more engaged with our brand, which is great. And then for prospects or people who are not car members today, when they come out to experience us, they are more likely to sign up for us with us
right as a card member. And at the end of the day, it's that, right, you want better loyalty and more right, more love from the customer base you have today, and then you want your prospective customers to be, you know, more willing to sign up with you. I mean, that's it.
But you're not going to give us a number, I know, but you sign up a ton of people we do. You know what how people who are like, how would you quantify?
Yeah, if you can't give us a well, you know what, how about this?
How about a trend?
Right?
We're talking about NFTs and other and or right like the like the types of like even music relationships, right, like when I talk about like a Ed Sheeran or a Jack Harlow or actually we just announced to pop
up next week with Olivia Rodrigue. I mean that starts to point to a certain demographic, right, and so I would say that our millennial and gen Z customer base that is the fastest growing like segment for us in terms of consumer cards acquired, and that was I think we just publicly announced that in Q two as well.
And so when you think about that, right, staying ahead of those again, staying ahead of your trends, right, getting in there early, you know, from a brand level, just making sure that people, Yeah.
Go ahead on that. You want to talk about Jack Carlow, But my.
Daughter who's twenty, I mean her first.
Card wasn't just loved to hear Jack Carlow is too, Pah, She's let's say, you know, it's getting to the end of the year, you're sitting down with your manager. How do you prove that this was a successful event?
Yeah, I mean at the end of the day, there's it's I mean, we do. We have a lot of data, and so in terms of everything from right the number number of people that have come by to engage with us, it's some of those data points that I mentioned about
existing card members and prospective card members. In what that starts to look like, we do a big comparison against right, This is certainly an incredible, huge event that we invest in, but we're everywhere else do right US Open Golf, NBA, w NBA, all the music and festivals at things that we've talked about. So yeah, it's about looking at that have we surpassed last year's goals? Have we hit the goals that we thought we were going to hit?
She says.
You know what thing I do think about because you do have you know, the Green card, you have the Gold card, you have the platinum, and then you go, you know the card that I don't have, according to Tim, and I don't.
Know what what do you stuff?
All right?
What I'm wondering is do you think about different events events to kind of grow a specific card or is it just you think about the whole business.
So for us, we are actually within the global brand organization, So I think about the AMEX the brand globally and so that's why I mentioned like Wimbledon and some of the other events as well that we have around the world.
And then we have other product marketing teams that do target and so if you think about things like we have like by imitation only and some other like really you know targeted, I would call it experiences that are out there, and so yeah, it just depends on you know, what that marketing plan might be across the board.
But like going after call it like my first card was a green card. I don't know what your first.
Yeah, like I was, you know, as a college senior, and you guys run campuses and stuff, so interesting, so I'm just curious about like how you target it that way.
So the card member experience is certainly part of it, but your presence here is also for clients, and there's an entirely different side to American Express. Talk to me about what happens behind the scenes in the box at night and who you're entertaining and what goes on there.
Yeah, I mean.
It's pretty much simply like B to B hosting is what I would call it in the most traditional sense. But yeah, we do have a couple suites here. It's incredible hosting, right and so you know, whether that be for the day or the night session or other, it gives you such a really incredible opportunity to just to have time with your partners or perspective partners. And so you know, everything that I've said on the consumer side that still applies for the business side as well.
Can we And I'd love to wrap up with if we can break.
The love Oh can you talk about this because I think this is about access in anyway it is.
I mean, you know, the factoid there is that since twenty twenty in the US tennis players have actually increased by thirty three percent. And so when we started to look at.
Those blows my mind a little bit, right, because everybody was worried. I feel like, you know, oh my god, where's the next generation?
And then also like if you think about at one point, right they were like, oh, is it a COVID thing? But actually no, it keeps growing. It's for three years in a row. And then if you kind of stuck on top of that, if you're in New York a right, like sometimes it's harder to find a place to go where you don't know where to go other and so
break the Law incredible platform. And it's also you know, we would call it us We would consider a small business diverse female owned, which is really incredible to support. And they have a collective of all sorts of tennis reservations that you can make like in all in many demographics for US, we focused on New York again because the US Open is here, But we have ten thousand reservations on hold for card members for free. So for a set month, we've got that available for all of
our card members. This our second year in a row. Last year it was just, you know, it was like, hey, we've got spots reserved for you. And what we learned through that is people didn't want just the spots. They wanted to take classes. They wanted to like take part in things to make their tennis game better. So this year we brought that on and so everything from like a Wilson tennis racket fitting to like having classes and others.
So or if you just want to come play tennis, we want you there as well.
So okay, five seconds. Yeah, your favorite event that you do year round? Oh gosh, you can have favorite kids.
I mean thirty years. There's a reason why we're here. This is like homecoming for MX.
I think, oh, that's a nice way I'm saying it. Hey, listen, do you play tennis?
I don't, okay, and I don't play, but I love the game.
I love the game.
I'm out here when the US Open is not going on to play here.
She's thank you so much, be well, good luck with everything. She's a Zuki.
She's VP of Global Brand Sponsorships and Experiential Marketing in America's press.
Right here at the US.
Open, you're listening to the Bloomberg Business Week podcast. Catch us Live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app and the Bloomberg Business app, or want us Live on YouTube.
You know, it's interesting is so much of what we see on the courts here at the US Open often look yeah, full of strength and athleticism, at many times so effortless and graceful. But you know, you have seen players who definitely get hurt, and we've definitely seen that, tim.
Yeah, we have. We actually even saw several players retire early this year as a result of injuries that they experienced during huge matches.
There's some extreme stresses and strains, and so someone who has been working with athletes, many many others in general, including me when it comes to our feet, is doctor Rock Positano. He has been on the staff at the Hospital for Special Surgery for more than thirty years. He's director of the Joe DiMaggio Non surgical foot service excuse me at the Hospital for Special Surgery. He's also an author. We've talked about his book before here on Bloomberg Radio Rock.
It's great to have you here and you know him, I do all you do. Thanks for being with us. I think you and I feel like we had a cot. Well, it's so great to have you and I feel like we had a conversation. I always like to pick your brain about, you know, footage reason you know, you do work with athletes. When we think about the athletes that play here, it does look so graceful at times, but it is. They're athletes, and they a lot of stress
on their certainly on their feet, on their ankles. Talk to us a little bit about what they are seeing and what they are dealing with.
Sometimes.
Well, first of all, the pro tennis players are probably the best trained, best conditioned of most of the athletes. If you consider that some of these matches could go four or five hours, it gives you some idea about the stamina that they must have forget about breathing and you know, and doing things like sweating profusely, I mean muscular skeletally. It's a tremendous amount of stress and strained on the bodies of these these superior athletes.
Why, you know, I made a comment to Carol Doctor earlier this week. I was out here Tuesday night, and this is you know, I barely even spend any time in ash. I was out on the outer course. I did see I should say, I did see VNS play on Tuesday night. But one thing that we noticed over and over again was almost every single player had taped somewhere on their body, whether it was their ankles, whether it was their wrists.
Why is that, Well, you know, Tim, that's a very very good question. I mean, taping provides stability, It helps to keep swelling down, a dema reduction we call it. It gives them a better in the case of an ankle strapping or footstrapping, better footing where they actually have a better propulsion when they're trying to make a point. So, in that respect, you know, taping is still one of the most important parts of the sports medicine orthopedic practice. Okay,
and yet it looks very simple. But as we both know, for three of us, I should say, no, you know, there's nothing simple about taping. It's not just haphazardly placed it's placed in areas where stress and strain could be reproduced, areas where the muscles tendons in the leg it's insert, or where the bones are going. So taping has become really a very important part of any type of organized sports,
whether it be amateur sports or professional sports. So of course taping has the same indications in other parts of the body as well, in the hand, the shoulder, so it just won is all over the place. Yeah, taping is a.
Part of it.
So doctor, it's not necessarily indicative that there's been some sort of injury there or there is some sort of recovery taking place, you're saying. In some instances it actually provides an advantage.
Yes, because it allows propulsion, which means you're able to move on the book all a lot quicker. You're able to go lateral on the court, or go back or forth. So it gives you that little extra you know, jump, so to speak. It's sort of like a full crumb, you know. And I think in that respect they're able to get a much better jump, and of course their footing is better and then they are less likely to invert their ankle or throw their heels out or whatever may be so.
Yes.
So the answer to tech question is that it's also used for again it's a benign form of performance enhancement.
So when you think about the intensity of the play, you know, it's interesting, doctor Positano, that we talked with the folks at IBM, and they use a lot of data to give stats on the players and how they play, but they also you know, are tracking how fast the ball is moving. And it's just interesting how it just feels like things get you know, more ramped up.
And whether it's.
Tennis, whether it's football, whether a lot of sports, it does feel like the intensity of the play has just been increasing over time. And it also feels like the amount of injuries, or the intenseness of the injuries has also been ramped up. Talk to us a little bit about that just in professional sports more broadly.
Well, look, again, conditioning is everything. I mean, I had the pleasure of knowing some very very world class athletes that played back in the forties and fifties, and they would say the same thing that they certainly did not have the analytics so to speak, or the technology available to them to stay in shape throughout the offseason or
throughout the season. Itself, and I think that's a big part of why professional sports has changed, is because these are ways of making these players be able to be more effective in their play, but be provide a safer environment. They learn about certain types of things, certain types of athletic wear, whether it be a brace or in our case, a prescription foot orthosis that helps us stabilize the ankle.
And I think that's a big part of what's happened with professional sports is that there is this technology which many times does help again performance enhancement as well as injury prevention.
What can we learn as mere mortals from what the professionals do. Doctor, you see people each and every day who aren't necessarily professional athletes, who have recurring injuries of their feet. Do you give us.
Well again? You know, having had the privilege of taking care of professional and elite athletes in all areas professional football, professional baseball, at the US Open, uh, I think the most important thing is not to overdo something, which means everyone gets inspired around Wimbledon or the US Open to
go out and play a lot of tennis. And of course it makes people feel good because they watch these tennis players on the court or the baseball players on the field, and they think that they can go out there and just start to be full force. Well, it's not a good idea, I know that are sent to hear at HSS, we find that many of these injuries involving the foot and the ankle are really because these people are not conditioned, and particularly the areas of heal
pain and achilles pain. And actually I had a conversation with someone recently about, you know, pickleball has become a very interesting, you know, type of a sport. You know, you know, I always kid around. I say that HSS is probably the mecca of pickle ball injuries of the Tri State air area, and you know, it's a form
of racket sports. But again, you know, and I say this with all respect, I say, right now, we're in the middle of a pickle ball pandemic because we're seeing all of these people coming in, particularly in our area,
with heel pain, achilles pain, I mean stress fractures. I have my colleagues in the Spine Service telling me the same thing that these these weekend warriors, whatever you want to call them, they're coming in out with backs brains because they have to make these quick dips so I think pickle ball has certainly established itself right now as being you know, a very popular sport. It's a lot
of fun. But again it's one of those sports where you know, you know, it may be a smaller court, but with that smaller court unfortunately becomes bigger orthopedic problems. And we're seeing more and more of that, and I think the conditioning aspect him is what we're talking about here.
Forgive me, I didn't mean to interrupt. Katrina Adams.
You were talking with yesterday, former head of the USTA and of course professional tennis player, doubles player, and we kind of joked about pickleball and kind of made it sound like it was so easy, and she's like, it isn't easy.
It's intense, and you know, yeah, but you don't see her out there playing pickle ball.
No.
But it's because well it speaks exactly well you know what people, you know, Carolyn tim With people don't realize is that even though it's a smaller court, Okay, it's a much faster game.
There's more focus on the foot, the ankle. There's quicker pivots. You need quicker footwork too, And I think again you're more likely to rupture your achilles or tear your plant to faster or blow your knee out because you're not conditioned, and because your reaction time has to be significantly faster than when you're playing a nice game of civilized tennis, which is what you're seeing right now, when these players are hitting the ball one hundred and thirty miles an hour.
So again, you know, pickleball is a great sport. But going back timp to your question about conditioning, that's a big mistake that people make. You just cannot go back on any sport, whether basketball, you know, tennis, you know football, whatever, and just think you're gonna go out there and play your heart out because again you're not conditioned to do that, which means your muscles tend look at at some bones are not accustomed to this type of a quick escalation, so to speak.
All right, we're gonna have to leave it on there, Doctor Positano. Thank you so much for jumping in and talking with us. We so appreciate it. Doctor Rock Positano. He's director of the Joe DiMaggio Nonsurgical Foods Foot Service at the Hospital for Special Service Surgery.
Excuse me.
He's also the author of Dinner with Demaggio, which we talked about with him a few years ago.
If you're listening to the Bloomberg Business Week podcast, catch us Live weekday afternoons from three to six Eastern Listen on Bloomberg dot com, the iHeartRadio app and the Bloomberg Business app, or wants us Live on YouTube.
You remember that in June of twenty twenty one, the Supreme Court cleared the way for college athletes to benefit from the use of their name image and.
Like, this is nil. We've talked about this before.
Since then, twenty year olds have earned six, sometimes seven figures on such deals to shout out brands on Instagram, sign autographs, or hop on Zoom with a few fans. I mean, they're finally being able to make money off of their success at the college level.
Here's the thing, though, Carol. Even though pro tennis players are some of the top earning athletes of all time, college tennis players are not the ones raking it in now. That's pretty much reserved for college football and basketball players. That's according to data from open Doors. It's a LinkedIn, Nebraska based marketing platform for athletes.
All right, So let's get to it because Richard kat knows all about this. He's legal counsel and marketing consultant at Sanal student athlete name, image and likeness on the growth of what we are seeing in this in college sports specifically, he joins us on Zoom in Connecticut. He's also the author of tennis books, including feder and Nadal Inside the US Open and Roger Federer Are Back on Top. Needless to say, he loves the game of tennis, and I think.
Yesterday you might have caught him behind us waving hello.
We're sorry we didn't get to talk with you Richard in person, but so glad we could get to you here.
How are you great? How are you guys?
We're doing well. We're doing well.
I mean it's another, you know, record year for the US Open in terms of participation. Tell us about your world though, and how things have continued to evolve since that Supreme Court ruling.
Oh my goodness, Carol, it is the wild, wild West, and I emphasized the wordwild.
The landscape changes every day.
In the conference realignment that we saw this morning, you know, with Stanford and with cal and with.
SMU joining the ACC.
This is all derivative of what went on when the US Supreme Court decided that Austin case nine zero. Think about it, this factionalized Supreme Court decided a case nine to zero.
Wow, okay, let's get back to the idea that tennis players are, you know, not the ones cashing in on this. As I said earlier, it's all football and basketball in college Why is that?
You know?
That's they're the revenue sports. Our methodology is indicated about seventy percent college football, twenty percent, men's basketball in ten percent the rest with lacrosse, soccer in women's basketball. So I can't even tell you if tennis is one percent of this paradigm.
That's incredible given that here we are at the US Open Carol as John Worthim's going to remind us in just about an hour, maybe even less than an hour. Actually, yeah, this is the most attended sports event in the United States. Five of the top one hundred highest paid athletes of all time are tennis players.
Right, So then why Roger.
Fetter is a billionaire? He's earned a billion dollars, I should say not. I don't know if he's a billionaire, But why doesn't that translate to the to college and to the interesting college.
Well, when we say the most attended sports event, the US Open is also an event which overshadows the fact that it's a tennis event.
People go there to be seen.
People go there to go to the restaurants, to go to the stores there as much as they go to see the good tennis. So I don't think you're going to be saying that about the events in let's say Atlanta or Washington, d C. Where the attendance is down. So that's just my comment about the US Open. It is a tremendous event foreshadowing a tremendous tennis tournament. But in terms of college tennis, yes, it's big in the SEC. Yes it's big in the ACC at some of the schools,
but it's simply not a revenue sport. And to the extent that it is gaining nil money, you are. The good news is, and I think there's a player at Ohio State that this pertains to. You may be keeping kids in school a little bit longer than joining the actual pro tour because if they can make some nil money, they may stay in school another year, another year of college.
Because college tennis is pretty rigorous at the highest level.
Does Richard, does NIL money change depending on the school that you're at and that you play even with tennis? Does it matter the school that you're coming from.
Carol, Let's make one thing clear. NIL money comes from the boosters. It does not come from the university.
Yet.
If we do this call in three years, the universities will be involved, they will be inculcated and Title nine might become an issue. Right now though, it's the booster money. So you're looking at the schools with the biggest boosters, the Michigans, the Alabamas, you know, maybe Kansas and Basketball that have most of the major NIL money flowing to the student athletes through a third party conduit.
Hold on, you said, yet not yet from colleges the university.
It's gonna happen.
Yeah, what's going to happen.
Two or three years down the road? Revenue you sharing, We're going to see a piece of the TV contract. Let's take the Big Ten. I'm a Wrecktgers person. Rutgers gets on one hundred million dollars from the Big Ten. Most of that is TV revenue. You're going to see between five and ten, five and twelve percent let's say of that going to the student athletes.
And you're also going to.
See the conclusion of a lawsuit that's pending in the federal system in the third circuit, in which student athletes are suing to become employees of the university. In other words, I work thirty hours a week on the football field for you, mister university, and my counterpart, who works thirty hours in the library for your university, mister university, gets paid.
So why shouldn't I get paid?
Why shouldn't I have workers comp And that's gonna that's going to be decided in a year or so.
Every one of these decisis.
Maybe the university would say you're getting a free education.
Absolutely, but that's just one part of it.
You're getting the free and that was the argument by the NC double A lawyer and Justice Kavan law Skeward absolutely skewered that.
Lawyer saying, yeah, you're getting a free education.
And Nick Saban is making twelve million dollars at the time, Mike Krushevski, who was coaching at Duke, was making nine million, and Mark Emrit, the NC double A president, was making three point five million. So yeah, that's nice that you're getting a free education. But you're also paying these coaches loads of money, and loads of money's going into the university coffers.
You know, Richard, I wish you had more time.
This is really a big topic, and as you said, it's going to continue to evolve.
And hopefully it gets certainly more fair.
If you will, to the actually athletes, the college athletes that are that are doing all.
Our po still winning on my Division III tennis checks from Colby College for the three years I played there. Yeah, we didn't really attract many fans, Carol, I'll be honest, Richard.
We got to run. Hopefully next time it'll be in person. Richard can't.
He's a little counsel in marketing consultant. H as we said, covers the name, image and likeness world when it comes to college sports. Will be giving us some great insight. Joining us on zoom from Connecticut, Carol Masser along with Tim stand Victim.
Still waiting for this check, waiting for the checks. I'll be waiting for a long time.
I heard him.
Maybe I'm brother Marco.
Journal.
How about you let me drive?
Oh no, no, no, no, honey, please, I'll do the riding gravel. Let's mate, I want to try it.
It's the question.
This is the drive to the globe?
Done well by around?
Should it?
On Bloomberg Radio?
All right, everybody, we've got just about eighteen minutes left in today's trading session, getting ready to wrap up this job's Friday, if you will, first trading day though in the month of September, but also wrapping up the week overall.
And yeah, so far, up three tenths of one percent on the Dow Jones, the S and B five hundred up about one tenth of one percent. We got the Nasdaq in the red. Go Carol down one tenth of one percent.
All right, so let's get to it. We've got David Dits with us.
He is a tennis fan back with us, senior portfolio strategist at Peapack Private Wealth Management, a friend of the show. Ten point seven billion in assets under management with us at the US Open.
Nice to see you back here.
Pleasure to be with you guys in person.
Well, thank you. Yeah, it is nice to do stuff right face to face. Talk to us.
Let's go about the market environment and the jobs market. How does it significantly, if at all, change your thinking about what goes on in financial markets right now?
Well, certainly. I think we've got a Goldilocks support this morning.
Oh you know what that means? We all have to drink a shot.
There we go, it's Friday afternoon. It's actually true.
Everybody keeps it. It's a goldilocks report, you know.
And so we had job creation.
But on the other hand, the unemployment number went up to three five to three eight, which means people are coming back into the labor force.
Why is that good.
It's gonna you know, keep wage growth down if more people get off the sidelines. Also, of course, there was one hundred and ten thousand jobs revived down off of the two ap.
Process revisions are actually really important, I think.
Yeah, absolutely, When you factor those into into what we had seen was the dip from July to August in terms of jobs created, we are definitely seeing a cooling. And I think it's enough for the FED definitely to be on the sidelines in September. It's not enough for them to say, hey, it's victory, We're done.
It's just one metric, okay, So what are the metrics that will make the FED say, okay, victory, we're done.
Well, you know, we're going to have the CPI later this month. That, of course, is the exact metrics that they're looking for. They want that inflation rate to come back down to two percent. It's moving in the right direction, but at any time, of course, we could get a bad print. We've seen a sprint of consumer spending. People wanted to go see or Swift and some of the other goodies as best. Um, so we've seen some great spending.
On the other hand, we do know that the kiddies that the consumer had built up during the pandemic, they're starting to dwindle down. Wage growth is starting to slow, so we're probably going to see some slowing and consumer spending, and I think that's going to give the FED confidence to not be as aggressive.
David, what do you think we spend too much time talking about? And what do you think we should be spending a lot of time talking about when it comes to the markets right now?
Yeah, absolutely, Well, you know, I think that number one, of course is inflation, because inflation depresses profit margins to inflation makes it tough for consumer to spend.
So what are we spending too much time talking about?
Probably what happened in the last month in terms of the market. I think you do need to take a longer term point of view. And of course what I really don't like is all the talk on the AI, because you know, I've been around the block before here and AI is going to make us so productive, it's going to be in take decades, you know.
And a lot of this has already been priced in the two hundred percent run up in video this year. Two hundred plus percent run up, I should say, warranted or not warranted, you know.
I think it's gonna be very tough to make money from these levels. Sure, and Vidia is going to do wonders with their chip design for AI, but everyone in the world is going to be trying to match.
Them with those same types of chips.
We saw a lot of this in the Cisco run up in the late nineties, where the second.
Person just in the last couple of days Carol to talk about the late NW. I know, here's what I said, Here's what I said yesterday. But so is this is this pets dot Com all over again?
No, they haven't genuine business. Pest dot Com had you know, no revenues, no earning, but.
They did have a sockarpet.
Yeah, exactly, excuse exactly, So no sis go to real business, and Vidia has a real business. The problem is the competition is going to come in and I think at this point, you know, you talk about twenty five times not earning sales.
That's expensive.
Except if AI does pan out to be akin to something like the growth of the Internet. And to be fair, AI not a new thing. It's been around. This is just taking it to another level. We've done segments on quantum computing and like it all plays in. Like I think about how much the Internet is a part of our world now right we just take it for granted. In the early days, I think we were still trying
to figure it out. There is the possibility that this is something that really does, right exponentially impact productivity growth, maybe new avenues. I just right, like we have to be kind of smarter at about it.
But there's investors. The question is how do I make money from it? And often it is some of the ancellar businesses that can most use AI. For example, why are we seeing that strike in the film industry because those actors and actresses think that they may be out of work because of AI. So maybe some of the media companies which have been beaten down look disneys at what a multi decade low or something like that may
be able to take advantage of AI. So maybe you should look at the people who make the picks and shovels and not the actual gold miners.
Can we talk stocks because we only have about a couple of minutes left here? Because you do like.
Some names that are very familiar to our audience. Pfizer, it's down about their twenty percent so far this year. I'm thinking about the Medicare price negotiations impact. Some of Pfizer's drugs are part of that. Also, they had a plant damaged by a tornado that's maybe going to be back up and running in.
The fourth quarter. Why do you like this one? Is it a valuation call?
Well, I mean Pfiser is one of the top blue ship pharmaceutical companies, and of course they'd have a strong R and D pipeline. But what makes them even better is that their marketing efforts not just in this country, worldwide.
They had the best sales for us.
That's why buying TAC who had that vaccine came to Pfizers so they could get off the ground. So right now Five's is being treated as like a one trick COVID pony. But we know there's so much more. But valuation is strong. Eleven times earnings when the market's knocking on, twenty four and a half percent dividend when the market one and a half. Yeah, and so you know, I think that since with the COVID proceeds, they bought about
eight different companies, including Cgen, which is not closed. So I think they're going to have some things that really surprise us. In terms of the medicare negotiations, lists and so forth. That's not a positive to the industry, But in terms of the one drug that they thought was going to be part of the negotiations was not.
I can hardly pronounce this.
I'm not going to try to you right now, but the point is that I think a lot of that is priced. Of course, all eyes are in next year's elections. We'll see how it works out. But there's a lot of the industry and people who are against that in negotiations and effective price controls.
Okay, before we let you go, one more stock citizens financial down twenty seven year, twenty seven percent year to day, Why are you bullish?
Yeah, so a lot of babies have been thrown out with the regional bank, smaller bank, Bathwater Citizens Financials. That's been around since eighteen twenty eight, the Civil War, the Great Depression. It has been through trials and tribulations before. Meanwhile, of course it's got eleven states, five million customers, and some of those relationships cannot be duplicated. You got a
six and a half percent dividend. I think if they just get up to one times book value, you go from the upper twenties into the mid thirties and have a nice.
Retre So even the warnings that are seemed to be coming from officials, we did a Bloomberg exclusive story talking about the fetishing a sluugh of private warnings and that included citizens financially, you're not worried about some repercussions from that.
We're worried about everything, but we think that their high quality underwriters and that their lum book is going to hold up really well.
So you're not worried that much.
Have we worried about everything? But it's fist in twenty seven.
All right, listen, enjoy the open. You know your daughters here as well, so have fun with her.
Thank you so much.
You enjoy the match. Any calls you want to make. Who are you watching?
You know? I have to tell you as it walked in fifty years of equal pay in women's tennis, that made us feel so good. As with my daughter, I said, it wasn't always this way. These things are different and they're better.
I love that. David Dan, thank you so much. Be back Private Wealth Management.
This is the Bloomberg Business Week podcast of a Little Apple, Spotify, and anywhere else you can get your podcast. Listen live weekday afternoons from three to six Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business App. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal alone