Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg Surveillance Podcast. Catch us live weekdays at seven am Eastern on Apple CarPlay or Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube.
Everything we do, folks here is about a conversation with people with breadth. There are few in the Western world with a breadth of finance, like Cuba and Steinas. I'm not going to bore you with a resume. He wandered by a school named Oxford a few years ago, did some serious work with Bank of England and added tour duty at Morgan Stanley. He is definitive on our financial system. Tim Adams Scott Bessent ten am, what's a question you would ask a secretary treasurer?
Wow, thanks to having me on look.
One conversation I'm hearing which doesn't come out in the press much is about the strain on cash flow for small business.
You know, it's a huge topic for private equity and for banks.
Right, Let's imagine you put in a ten million order in for toys. You now have to pay twenty four million dollars if they come from China, you simply don't have that cash flow. So my question would be, how worried are you about small business not being able to stock their shelves?
Okay, folks, you flunk this in a CFA exam. I've done and I've enjoyed it. Working capital, and this is to go into the way a business runs. There's a thing called the cash conversion cycle. Part. Did you memorize that that was with the three ratio and the five ratio? Do plat formula que Vestin is your expert at this? When you see terror of adjustments, I don't understand how you go from three percent to ten percent or one hundred percent and your world blows up. I mean that's where we are right.
Well, look, I don't think any of us have seen anything like this before. I mean I think I wrote a bit about the Nixon shock where obviously Nixon did impose a ten percent tariff for four months, for four months, but I guess the markets can't stand that, you know, wouldn't tolerate four months here and that did is you know that did lead to product shortages and to price bikes because people couldn't forget cash conversion cycle?
Do at Walmart. That's the heart of the matter.
That probably Walmart's not my expertise, But if I think about the conversations we're having, the focus is predictlarly around retailers small businesses who just don't have the cash buffer. If your Walmart, clearly you're really large, you're very sophisticated,
you do have big cash buffers. But if you're a small business running from quarter to quarter to month to month, how are you going to be able to pay two point four times what you expected when you may be worried about not a pubby able to pass it on. So what we're picking up is people trying to wriggle out of their orders if they can, and at least not renew those orders. That's the conversation the Finance is having, which I don't see enough in the main impress yet.
To the extent that the President in this team are walking back some of this tariff rhetoric. Has some of the damage already been done? Do you think are we seeing in the system already just because of the rhetoric?
So this is so I think this is what we distinguished between like sort of the growth shock and then kind of let's call it the more institutional shock, what all the taboo questions which we wouldn't have asked in the past, which now opened. I think in terms of growth, it clearly has been a bit of a punch in the gut for small business, which is the heartlands of America.
Larger business are clearly ducking and diving through this. If I think about my area, thinking about the finance, finance, Look, the volatility has actually been quite good for the investment banks because I've been trading, yep. But the business confidence that one section. But the lack of conder corporate confidence is pushing deals to the right and certainly our conversations as some firms think, actually the deal pick up now is not till twenty twenty seven, not till twenty twenty seven.
First, wow.
Interesting. So I mean, I guess if nothing else, you know, we've this a million times before. The markets don't like uncertainty. But we're starting to see it in the survey data, whether it's the University of Michigan data or that you know, the pmis it's out there, right, I mean, it's not in the hard data. Maybe the FED looks like but we certainly see it in some of the other software data.
Yeah, I mean, look you I'm sure you know my good friend Torston's looks great. On's trying to slice andize this. But if you look at you know ships coming into La or elsewhere about the stocking that they're down by a third to a half, that's clearly a sign of stress coming into the system. No, look, I mean at the data will come through, but the FED will need to be very data to well. Could always be data dependent, but it will be the historic data. Markets are clearly going to move way faster to.
Von steinas with US folks, Oliver Wyman can't see the importance of this for Global Wall Street even more important in fifty minutes, Scott besn't with Tim Adams in Washington, hugely anticipated. Okay, you mentioned Torsten Slock, your Apollo management. You want to go out a choir, you get the Deutsche b brain power of doctor Slock. Wonderful. The bottom line, and this is Paul's world, is I don't buy for a minute. Everything's wonderful and private equity. What does an
adult like you do? What are the tea leaves, the litmus paper, the measurements you're looking for for stresses in private equity.
It's a great question.
Look, these are unbelievably entrepreneurial folk, and so they're trying to sort of weave their way through this. Look, I think the first and second line is really about the order books. Has the sales come down, whether I've got highly leveraged companies trying to forensically work through that. So I think it's about cash conservation and it's about getting a cost down. So I'm already picking up people saying to all their management teams, have you thought about a
cost round? What are you doing about that? So that's one, But on the other side in credit land, they're actually people trying to look this as an opportunity and actually trying to buy in.
Some of the credits.
A wider spreads than we'd see in eight weeks.
There's somebody selling those spreads totally. Do they book a loss now.
To again, it depends depends we turn about the private Let's be clear, about sixty percent of the new influs for the private market firms for the last two years has been credit and overwhelming. As we've discussed before, that's coming from the insurers. These are steady hands they want to deploy in size, but obviously on the equity side there more stress in the system. Bo was okay, g okay?
So you have has Wall Street kind of with the earning sessments out there? Has was Street adjusted to this no uncertainty or do you still see downside risk to earning sessments out there?
God?
Look, I think that Let's be clear. Everyone is struggling to comprehend the range of scenarios. So to give you a simple answer is just it's just inconceivable. I think the like what are them the simpler moves, there's like the overwhelming conclusion of this where we to to find a better way to diversify your portfolio, and that at the moment than one way trade is look more towards Europe and Asia and look, European banks is stop twenty five percent year today.
Wow, you know, let's be clear, you.
Know, and I know that may not be the place that's now that's a smaller market for you, but I've clearly on this side of the pond there are Look, I think it comes back to how corporate confidence plays out on the stress and the system and how quickly the demonstration blinks. These are you know, complex questions which you're dealing with every day.
Sorry, this is this wheelhouse. Hugh Einstein is folks. You know you got to start somewhere, and he started by being the required fourteen page read every four or five days in the European banks. I mean, I'm don't you, folks, But Hugh doesn't understand. He's never used a Bloomberg. Here's no clue. And the bottom line is I got JP Morgan hitting the ball out of the park with a priced book of two times in trading at one third even after the twenty five percent rally is BMP Perry
Bar of Paris. I get the idea that the English, the French, whatever, banks are off the mat, but do they have the growthiness of America? I don't buy it.
No.
I toltally by that. So that's a that's a value trade, not a growth trade. Look, I think the challenge here is this is a growth shock and then somewhat of an institutional shock. And I think all the financials I'm talking to are working through reworking their plans, but they're struggling to sort of be precise because they just don't know how quickly the administration will blink on tariffs and there for how how big a shock it is to
the system. But you're right, Tom, we we're Europe's value trade, not a growth trade.
So but you we have seen I guess as recently as kind of late last year, very early this year, international money, none US money, was coming into the US markets in waves. I was really noticeable people were seeing in fund flows. Now that seems to have reversed a little bit and we're now seeing funds go back into your back into other parts of the world. Is that a short term trade or is that something morris able? Do you think that those funds back out?
My sense from the international asset owners is that they want to continue to repatriate, and I think that's partly a concerned tactical concern about the market situation, but it's also about weaker dollar. But also there's institutional pressure to deploy at home. So if you're the Maple LX, sorry, the largest date Canadian funds, they're looking to try and help the home by the home building spree that my old boss, Prime Minster Karney is going to be doing,
alongside many other interatives in Europe. Some of the big pension funds are looking to help fund the defense spending spree about to happen, So all of them are thinking strategically they need to have more money back at home. Now that's at the margin, but it's definitely more money coming back.
Well, let's rip up the script and an extended conversation with Hugh von Steins of Oliver Wine. You know Dan Tannemba, I'm so brilliant and sanctions. They've really put together a huge team at Oliver Wyman and we're thrilled he could join us in our studios today in New York. So then let's rip up the strip on this and go sixty thousand feet Mark Kearney. Uh, you know there are other worthies that are driving our mister Powell, the others that are driving our financial system. The heart of the
matter is the renominal GDP. Finally, back almost to Conrad add in our and Viilli Brandt, we got to have a Germany with pop Do you buy it?
I So I think this is the spending of probably up to a trillion euros about rearmament, defense and just quite frankly, resilience is a real game change.
I think they're going to execute.
But I think there will be slower to execute them. And the one era we've chattered back for is it's not just about government spending. You need private sector spending. And the kind of breadth and depth of capital markets in Europe are still not the deep depth you want. And we need the plumbers. We need the plumbers to try and get the system to work much more effectively. The let's say, let's say, oh no, if you look at the States, there is four trillion of US insurance
money is in the market to fund the system. European insurers have got straight jacketed about how they can put money into equities, into venture capital.
Private equity is the heart of the.
Matter, folks with he framed far smarter than me, or the absolute heart of the matter. Can Europe can the old world? Can Rubinian Taileeb's Old world equitize? That's the heart of the matter.
I think it's right.
Well, it's equitized and providing risk capital because it's really about its venture capital.
It's growing small businesses.
It's how do you do all these you know, defense tech startups. We need a range of risk capital, I mean, and the way we the markets it's improving, but we need to turbo charge it from here.
I had a conversation with leguard Is, Trade Minister of France ready twenty one years ago, and we were talking the same thing we're talking to human.
Steve's exactly right now.
So Hugh, in terms of Europe kind of reinvesting in their infrastructure, maybe in their military, there's I guess what I've heard is Okay, Germany can do it. Poland probably could do it just because they had been doing it for a while because given their geographic location relative the Russia. But can Spain do it? Can Italy do it? Can Portugal do it? I mean did they have the wherewithal to do that?
So there's a fiscal question, and then it's kind of like do they have the right ecosystem, the skills, the expertise. And you can see that actually, because Europe hasn't been investing in defense, there's been a real aerospace is good because there's a whole cluster around in the south of France. Actually you should go and visit to what one time around you know where you know the aerospace industry is coming from. But elsewhere in terms of drones and some
of the other areas it's going to come. Look, the fiscal challenges are huge, and that's the But in a way, what we've seen here is that the fiscal spending has been part of the US exceptionalism. The real booster to spending here has come also from the government perse right now, wrongly. I think we're getting to get some of that in cour Europe. Whether we're going to go enough to justify the evaluations, it is a bit tougher question un seen us.
Thank you so much.
You're listening to the Bloomberg Surveillance Podcast. Catch us live weekday afternoons from seven to ten am Eastern Listen on Applecarplay and Android Otto with the Bloomberg Business app, or watch us live on YouTube.
Joining us now the fun for lunch Bunch crew Lisa Matteo and Daniel Lives of of Red Bush. Here and a bright pink for those of you on radio. You're lucky wearing bright pink today? Comment down, Dan, is this a corduroy? Look you're way it is?
It's it's corduroy. Will I mean a little? It could be a little even Sweeney influenced. It's it's Lisa.
You can't see me wearing that, can you?
I could see him walking into a showroom at Tesla's showroom. Yes, and I'll take one of those.
I'll take Paul.
Why don't you leave it up with his worship Dan.
We had Tesla report earnings last night. We had mister Elon Musk on the earnings call. The earnings were very disappointing.
You have to stock is trading hired? Why is the stock trading hired?
Here?
I mean numbers were basically took a back seat. We already knew was a disaster recorder the reality. This was the moment of truth from Musk.
To basically what I've used.
It's an off ram to Trump Whitehouse and doage, and that's essentially what he did. And he took a major step back on doage, says one two days a week. I think there's the beginning of the end there and going to recommit.
His CEO of Tessa.
Look, the reality is, and we've talked about on the show, brand damage was at a point he had to read the room and if he didn't make this decision now, it would have been dark days ahead. And that's why the stock's going to be up because now Tessa got back at CEO.
Now Tesla's in a new world of competition. It just looks to me as a you know, a lay person. Here China is taking over the evy market globally with the exception of the United States.
How does Tessa.
Deal with by D and others?
Look, I don't at first, I don't view as you know that it's you know, you can't have success from Tesla as well as Boyd. I don't have view as zero some gunn. But look, Tessa has work cut out for them. I mean they they have to have a new vehicle that comes out. You have to have the refresh in terms of model why and the reality is China's forty five percent of out So that is the hearts and lungs of Tesla.
But that's also why it's so important.
There's only one person that could engineer this turnaround in China.
It's Musk and I think Elon is probably the best I've ever seen of kind of maybe Jeff Bezos as well, kind of redirecting investor sentiment where he wants it to go. And I think he's saying, don't look at me as a metal bender car company, look at me as an AI company, robotics company.
Is that valid?
I mean, we believe the core value of the future of Tesla is autonomous and robotics. And obviously Keen will being there on supervised fist in Austin in June. I know he's getting ready. And look, I think this is just the beginning of what we're going to see in terms of autonomous. That to me is a core value.
You're not gonna do autonomous on fifty eighth Street in New York City. I mean, it's just not gonna happen.
Look, I truly believe over the next three, four or five years that autonomous is going to start to represent five, ten, fifteen percent on Really.
Do I say, I don't agree, but he's wearing pink I don't agree. Okay, let's go to Intel. We got a major story out this morning. This has gone worldwide instantly on Bloomberg. This is Intel down sixty six percent from the peak, and it's just simple, brilliant reporting by Jane Lenny Lee and Ian King. They're Gonnaly have twenty percent of their staff the annual report of twenty nineteen. We are a world leader, our vision, our commitment to
corporate responsibility and sustainability. What happened this thing was iconic Dunda da du.
I mean, just think about it. Go back to where Nvidio was twenty nineteen, twenty twenty May. If you look from gals Singer, it's just the whole corporate structure there, the red tape. I mean Intel, it's really a business case study for what happens when you go as.
A CFA business case study it is.
It's what happened when you're on the treadmill.
You think no one's going.
To catch you, Okay, Apple, Apple makes their own chips because ultimately that they box out Intel.
I am a Codec brattfo from Rochester. I lived this with Codec. The marketing guys take over, the slick guys take over, and the company goes down the tank until you're bringing culp from ge or Danaher to ballot out their gross strategy. Is they got to get back to basics in an engineer driven company. Is that a legitimate model or is that just blah blah blah.
I think it's a model. But I think those days have past. I think, I mean, I know that they're doing this huge cut that was reported you know Bloomberg, but I think the reality is that this is going to have to be a breakup. They're going to have to restructure the company. You're gonna have to ultimately sunset different products, focus on some of the growth areas because the reality is for Intel it look, you know about
dark days. I mean, if you look up disaster in the dictionary, you'd see Intel's.
Okay, my book of the Summer. I think maybe it's book of the Year. I can't remember. It was chip war. Is Intel competing against Taiwan's cell conductor? Are they competing against some amorphous Chinese blob? We don't know who beat them? Who defeated Intel?
I mean AMD in video in video TSMC. I mean when you think about Intel had the opportunity and just go back to AI, the opportunity to go after AI, go back to next generationships. And what they essentially did was look, it's in different like they're like a typewriter company mid nineties being like this internet window. This is ridiculous that people and what happens to years later that comings bankrupt.
So I got yelled at it for that, look and dog piles for real.
But but that but that's really that's the sad thing that's happened Intel. And look, yeah, obviously have a new CEO. But this is a very you know, it's really the collapse of a of a U S iicon.
Ask a question, Mike Robinson. Cones are hurting, My eyes are hurting folks.
Hey, just a red headline crossing the tape there, Tom, I want to get that out. Boeing first quarter negative just a free cash flow two point two nine billion and the estimate was three point four billion. So better on the free cash lit story for our friends at Boweing and stock us up about five percent here free market to.
Iron and talking Boeing and I and but Boeing and Intel in the same.
Sense exactly exactly.
We got Apple, We've got Amazon, we got Microsoft out with erning nels a week.
What are you looking for? Is it driven by tariffs?
Is an AI?
What's the the what's driving tech these days?
Look, the reality is that I expect basically new guide into some crazy.
Cowy odd guy.
But when you look at a Apple, it comes down like if these tariffs get them de escalation, the story massively changes, as we've talked about, because then iPhone seventeen comes out the AI store. You think about from a hyperscale perspective in terms of capacs. Everyone's waiting, but this book today, it's a pivotal moment, whether the walls are caving in or whatever. And for attack a huge bullshit.
I got forty two seconds. You've been on the floor in China where they make apple stuff. Can Americans do that? We got funny videos, snarky videos out on Twitter of people Americans sitting there making iPhones and people are laughing. This is not funny. You're an expert at this. Can you transfer that manufacturing discipline to Illinois?
I've said from the beginning it's impossible, because of the nature of the IP in the supply chain, the nature of the web force there when you're in Taiwan, when you're China. And that's why I've said from the beginning. We've told me on the show last three weeks, fairy tale that that's going to happen again.
If you want a.
Thirty five hundred dollar iPhone, let's build them in the Jersey of Manhattan. But the reality is, we see no way that that happens. I'm not saying onshoin King happen, but that is a fairy tale. And that's why the market has just reacted.
The way it has.
Yeah, after thought, just woke up and she emailed and she said, can you ask mister Ives if you can get us Taylor. She thinks I'd look good.
In a I've told you pinks your color. But and I'm glad there.
Is a New York Taylor.
This is actually Taiwan. But the point is like what, but I'm glad. Keenes finally on the train did a clear customs.
Thank you so much, particularly the comments there on Intel.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple Corplay and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just Alexa Play Bloomberg eleven thirty.
We're pointing direct now with one of our favorite people, Christopher Criscenti is with the MAI Capital Management. Someone that's looking I would say, all in all for the growthiness in value and his world has turned upside down. What's the value of cash now? You say in your research note you were trained on this to go from equities. Oh, I think I'll buy bonds, but it's priced down, yield up, so where do you.
Hide, tom That's a great question for this particular market, that there really has been no place to hide. We were glad to have the cash that we had. The interesting thing about that this, though, is with the market down fifteen percent, we're actually not buying the dips. You know, we love value opportunities, and typically this would be one. We just can't do the math because we just can't
build models because the future is so uncertain. If you're Mary Bara, are you going to build a fact, You're gonna wait. Are're gonna hire people?
You're gonna wait.
And so even if the tariffs went away tomorrow, I think there's been enough of this paralysis in the system that I'm relatively confident will be in a recession by the end of the year.
So, I mean a lot of folks are suggesting kind of where you are that even if they pull back tariffs to some degree, which it appears to the rhetoric is moving that way at least today. I guess so at this hour that some fundamental damage has been done, whether it's supply chains, confidence in US economy, confidence on a part of the consumer executives.
Well, you know, we've taken eighty years to build a system which were we screwed a little bit? Yeah, we were, but did we benefit from it? Look Paul, thirty five years ago, twelve of the top twenty five companies in the world were American. Now twenty two of them are. It's hard to argue that this terribly skewed against us. So when you monkey with that, it causes uncertainty. But uncertainty is a nice vague war. What you're gonna see you within the next two months is a pause in
corporate earnings growth. And that's what's really going to hurt the market because it's time is you know, Ben Graham said, like in the short term, it's a voting booth, but in a long term, the market is a weighing machine, and what it weighs is corporate earnings, and corporate earnings are going to start to face that the estimates have already come down a bunch.
And I think that's just the beginning.
You come into this with a whole twisted resume of an actual legit, massive corporate law career, and one day you decided that you like the four accounting statements better and you need to see it and all that, But the heart of the matter is Cris CASANTI, should we change our retirement plans, our allocation, or even our hopes of a time worn.
Not not at all time.
Not at all times.
And as any good financial advisor will tell you, you prepare for this moment years before. You have a diversified portfolio. And by the way, if I'm right and there is a recession, generally the market falls twenty five to thirty five percent in those case. It's very broad range, but
just generally. And we're more than halfway there already. So now, pretty soon, if this gets worse, as I suspect it will, we'll start looking for the opportunities and then as things get more certain, we'll be able to do the math. I think the math will be worse than we thought it was going to be, but then we'll be able to step in. So you know, the cycle completes itself again.
You know, Chris, I look at this in value in growthiness? Is the mag seven growthness broken?
I don't think so, Tom, I mean, the mag seven isn't monolithic. I would I thought the Tesla numbers were terrible yesterday, so that may be broken. We'll see.
They need to do some new models.
But the Amazon model's not broken, the Apple models not broken. They clearly have head winds, but the storm will pass one way or another. These are very dynamic companies that can adapt to this stuff. It's just you know, we got to redo the math, and the math isn't going to look as good as we thought it would two months ago.
So, I mean, it's it seems like this market wants to move higher. I mean, lack of tweets or anything positive on the Twitter verse seems to move this market materially higher.
And Paul, that's not a surprise. I mean, it was so over sold, and I would expect over the next couple of weeks we may get a trade dealer two and then that will be a catalyst for movement higher. But I again, in the long term, it's a weighing machine. What's going to happen to earning That's what we can't take our eye off the ball.
Yeah, we still have eight or nine percent earnings growth this year, maybe eleven or twelve percent earnings growth next year. You think there's downside to those numbers?
Oh yeah, because a month ago you would have said we've got thirteen percent earnings growth. Because you're now it's down to eight, and I will just about guarantee you if we have this conversation in June, it'll be considerably lower than that.
We'll see. How will corporations a depth you.
Know, Tom the way they usually do.
They'll lay people off, they'll postpone capital expenditures.
Bring good forward.
An along's got us with a five percent unemployment rate out there somewhere. I haven't hit anybody model six percent yet, but you get claims what Paul three hundred thousand, Yeah, to eighty thousand whatever. You get the unemployment rate to go, the Fed does what the what mister Trump wants them to do. They begin a rate cutting cycle. The system heals or is it just broken?
Well's how the problem is that tariff news has kind of pulled forward. Well, first we have some strong sales up front, but we haven't gotten to the earnings downturn yet, so we can't fast forward this recession. It's going to happen. The market will drop what it's going to drop. I mean, it's going to happen more probably than not. So yeah, there's ways to come out of it. But I suspect equity prices will be lower, when when those ways you have to be employed.
Chris CONSENTI thank you for them, coup.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Applecarplay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station, Just say Alexa Play Bloomberg eleven thirty.
NCK morroy Is is truly we got a huge response when he's on. He's with a Lobo Institute.
He has public.
Service to the nation, an extended career with the United States Marines. You know, he's a former coach at USA Boxing.
Really he does it all.
Joining us now from Montana. Mcnallwy mcka. I want to pause for a moment here. You're in Montana, and you know, the East Coast view of the military maybe goes distant to Virginia Beach to talk about the Navy. Maybe they get up to Army Navy at Philadelphia. The hallmark of my ute was a Strategic Air Command at the three hundred thirty Forest Wing in the middle of nowhere in Montana.
That's the backbone, not a bunch of offices at the Pentagon and your Defense department now is under not complete collapse, but huge controversy with the Secretary of Defense.
How does that affect the Air.
Force in Montana or the Navy in San Diego with.
You guys, I mean, ultimately, the military is going to carry on regardless of the issues with this civilian leadership and the Pentagon. That said, it really does reflect on who is in charge when you have this level of resignations and terminations. I haven't seen it. I don't think anybody has seen it in this state, and that does I think have when it comes to the line, you know, soldier, sail or airman, marine, confidence in the leadership to see that is not a good thing. But I do think
we are still in good hands. The chain of command is strong, That's why they have it that way in the military, and we can certainly amend all the important positions that.
We have mcmulroy. Then if it hasn't filtered down to the troops, are we ready to defend the nation? Now? I mean, is this a properly budgeted defense department, a budgeted Pentagon?
So I do think it is. There us talk about increasing the actual overall expense of the Defense Department, probably to try to make these giant leaps and technology that we really need to to stay far above what we call it the offset of our adversaries, and I think the military is adjusting to that. So I don't want to give people the false, in my opinion, the false
impression that somehow the military itself is in disarray. I do think it's important to have a solid chain of command it and the Secretary of Defense, of course, is in that chain of command. So there needs to be a lot of changes at the top, certainly the way we handle classified information. But I think it's important for Americans to understand that the military is fully capable of defending the United States here and abroad, even with this level of what's being described as chaos.
So Mick, I mean, I guess the latest news for Defense Secretary of Pete Hegseth has been the disclosure that he has I guess, shared sensitive details about impending US attacks on houthy militants on an unsecured commercial chat platform.
Is that a big deal?
Is this warranted this concern?
It is a big deal. The reason why it's called unauthorized is because you're not allowed legally to share classified information, and if the reports are correct, these are specific attack plans, time, place, and manner of how. In this case, the US Navy was going to carry out aerial strikes against the Houthies.
So this is very sensitive information. I think anybody can understand that if this were somehow to get to our adversaries like Russia, they could give it to Iran, they could give it to the Houthis, and then they would know essentially how to defend themselves against incoming attacks. So it's super sensitive. In addition to that, using the wrong platform, at least reportedly, people that were in this dat did not have all of the necessary security requirements and a
need to know. Essentially that you could just look at who's listed. They had no reason to know this, So this would be something that if you were a private, seaman and airman, you would likely be removed immediately, an investigation investigated under the Uniform Code of Military Justice.
Mister mulroy's with a Lobo Institute and we thank him for being with us.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Applecarplay and Android Auto with the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg Terminal.
We're going to walk forward, stagger forward to the newspapers would do this with Lisa, Alisa, what do you have?
Okay, so we all know professional baseball players, right, it's all about the swagger, the style. But the Wall Street Journal says it's actually trickling down to Little league. So parents, moms and dads are spending bidden bucks talking about sliding mits. You know the professional pros wear. Yeah, I don't know about the sliding mets, but they start around fifty bucks. But now parents are buying them for the cake.
Mom.
Yes, you know this stuff.
We don't do the sliding mits. We do like the elbow guards. We'll do those like that kind of thing. But what they're also doing is these crazy colored batting gloves hello Bruce Bolt, arm sleeves that we do, the crazy colors, expensive sunglasses, hello Oakley. Yes, fancy helmets too, on showers.
We come like ice hockey where you have to sell the third child, Dude, you do, and.
It's it's all for these fancy things.
You can go with regular Well, well they have to upset watch SEC softball sometimes because I love the pictures.
I can't believe how Yes, but they all were.
Amazing makeup and the hair, and it's about the hair, the hair, and it's unbelievable.
I mean, but that's what it's about.
The look.
Yeah, okay, two, So that's what it is.
Custom fielding gloves. I mean, I know my daughter has a pink and white one with the putter. You can flag on it like it's itit's crazy, but you do.
I think she's taken over the Is there something else you'd like to mention about the third summer camp you're going to?
You can't flight plates and.
Thank you?
Okay, but that's what it is.
They're actually they're blaming the pros because they're saying the MLB switch their will so now they're allowed to wear the colorful things.
It's a jackocracy. It's the mother's fault.
It's the mom's fault.
It's the mom's fault. Next.
Okay, Oh, here you go, Tom, this one's for you. Some Gen z ers and millennials are still opting to live with mom and dad, so a lot of more the kids are are living with the parents for longer, so gen Z, you know, thirteen to twenty eight, so twenty eight, and then you have millennials twenty eight to forty three. So just to give you an idea of who we're talking about, they're starting to live with mom
and dad longer. It's a Pew research, you know, center analysis, and they say the biggest place places where this is happening Texas, Florida, California, where jobs are kind of hard wages or maybe not enough in some areas, and there's a gender gap too. So it turns out that the boat well men are living with mom and dad longer twenty percent a paired to compare with fifteen percent for the females who go off on their own.
Epidemic in Europe, it's completely preponderant in Europe. Yeah, like I would say it's a majority. I don't get it. I have varies. I got to be careful what they say here on radio.
But you know, I just it's there, right, it is it is, And they say it is getting better, like it's dropped in recent years, but it's still above like the historic clothes.
That way, we go to Paul Sweeney, who is the only person I know in the surveillance universe whose children are all employed.
Yeah, what's the bixis want? I went from six bedrooms to two.
Making sure they're not coming exactly right.
The governor of New Jersey, you know, so you can exactly right.
So one more quickly quickly, Yes, if you've been to the airport lately, the latest thing now are rooftop decks. This is happening at a lot. Yeah, they're doing these outdoor spaces. So a lot of airports are stepping up their game.
Loa Guardia's Terminal B.
They're gonna have that new Capital one landing lounge is gonna have the outdoor terrace. But we're talking about not even the lounges, but regular airport like four green terraces at Pittsburgh International Airport are coming.
Well to get one at the outdoors California and my kids when they're little, we can get like lunch and watch the planes. But that's Parmeult, California.
It's not LaGuardia.
Correct.
They do have the heaters and everything kind of set up for that, but it's just like the new thing, like they're upping their game.
Lisa, thank you so much, Lisa Matteo. There are the newspapers.
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