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.
We welcome now Glenn Hubbard, who has defined the growth of the Columbia Business School. He stole Abby Joseph Cohen from Golden Sachs as well, but far more. He is a Republican of a different cut. You do not hear his name discussed by President Trump. Maybe that will change. Professor Robert, thank you so much for joining Bloomberg's leasure. Does he need to widen the reach of his view
of potential chairman? Does he need to go beyond the comfortable Trump minions and look out to Clarida Hubbard and others.
Look, I think the President's got reasonable names. He'll do what he's going to do. I think the show that we saw yesterday and other things are harmful for the Fed and for his own goals of getting lower interest rates. It's not obvious to me that FED policy is too tight at the moment. If you just look at a
simple tailor rule. And it is obvious to me. If you continue to beat up the Fed, you risk raising inflation expectations, and you risk raising term creamium in long rates, and it's the long rates to count.
You are definitive on a cogent discussion of supply side. The arc theme of the Trump administration is rate cuts, tax cuts will stimulate growth? Can tax cuts stimulate growth? Or is Powell bucked in boxed in by legislation.
Well, tax cuts of the right kind can stimulate growth. In the OBBBA that just passed, we did have expensing a business investment. That's a good thing, better treatment of R and D, but we also had a big deficit finance tax cut. The best policies for growth would be changes in regulation, for permitting some housing reform, and frankly, high skilled immigration that the administration doesn't seem that interested.
Glenn, when you came out of Florida, and I should point out, folks, if he's the second Hubbard in the family. The other Hubbard is with the band Sawyer Brown, which is annoyeded, which is noted Glenn, when you came out of Florida, you went to Harvard, you read Alan meltzer cover to cover, Alan did the two volume FED history. Are we at a point like at other moments, including the seismic McChesney Martin moment in nineteen fifty one where we risk FED independence.
I think we are at that moment. I think a good FED chair will block that much as Chair Martin did. But I worry when President Trump says I'd like lower rates because I would like to help the fiscal situation. Presidents often say they want lower rates to help the economy grow or something like that. That's standard politics. This is something different, and I worry about it.
And Glenn talk to us about just tariffs in general. How do you when you're teaching your Classic Columbia, how do you talk to them about this? Tariffs in general? How should they be used? How are they not used?
Well, that's a great question. I mean tariffs are at tax they're not really inflationary. There one time changes in the price level. I wouldn't recommend them, but I don't think inflation is the biggest reason. I think the reason is you're taxing and distorting supply chains. You know, people forget two basic things. One at tax on imports is actually a tax on exports, and the reason for that is two one movements in the dollar and second the
fact that American imports are largely intermediate goods. You hurt manufacturing by doing it. The second point is it's not the current account, it's the capital account. All the current account. This is the mirror of the capitol account. You can put all the tariffs you want on. You're not going to change the current account until you change the capitol.
For all of you nationwide. Glenn Hubbard with US of Columbia Business School, just an outstanding two decades there building out the jewel of the upper Upper west Side to Morningside, his professor Hubbard. In a few minutes we have left with you. I have to go back to the FED and look at this concept of descent of a younger Bank of England where Catherine Mann and others go after Governor Bailey. There was descent a bit Larry Meyer writing
about it with Chairman Greenspan. Do we have a FED where whatever President Trump does into twenty twenty six, that the governors and the presidents can protect the FED by voting against a Trump chairman.
That's certainly possible, And obviously if the chair had unwise policy decisions. I think likely. I think President Trump will wind up me making a good FED choice. My concern is really the atmospherics around the FED that really come from the President himself.
Look, Glynn, just two more questions here. I want to get one, and I know Paul wants to speak to you as well. What is the best outcome for the advisors to the president sitting on the couch in the Oval office is what's the Hubbard recommendation to the Secretary of Treasury to guide the president's thinking?
Pivot to growth? I mean the President has already said, look, I've got my OBBB done. Great. He says he'll have the tariffs done by September Labor Day. Okay, fine, I don't agree with them, but fine, pivot to growth and there's a list of things you could do to get the economy growing again. It's what Secretary Bessett talks about, It's what the President talks about. How about doing it right?
Is Clariena on the short list? I mean, you two argued fought My Cats and Dogs at Columbia years ago. But as Richard Clarita on the shortlist for Glenn Hubbard.
I think rich Clarita is a phenomenal economist. The only shortlist that matters is the President's Thank Cldhulbard.
That is true, Thank you so much, greatly appreciate it. He's with Columbia at Business School and should be on any shortlist for the fit.
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There was a revolution in nineteen forty seven, which is sort of where modern statistics of economics came in vasily Leontifan and others. Before that, there was an art to it that was decided of vailue. The Conference Board had a lot to do with it, and another one was Jeffrey Moore. The Economic Cycle Research Institute. Latron Achathan has carried the torch forward here and releases today a jaw dropping future inflation grade going against consensus discuss.
Well, we as you, as you said in the lead in, we're doing something a little different. What we're doing is looking at the direction of movement for growth, direction of movement for inflation on the latter point on this inflation cycle. It's different from cycles and growth. They are very clear cycles. They're totally different, they're unique. We have future inflation gauge, which anticipates the direction of travel. There news slash is it's down. Okay? Really yeah? So now our job is
to figure out what does that mean? What the heck does that mean?
Is Powell behind? Does a president have an argument that mister Powell and the feed is behind because of your future inflation gage?
Well, let's say that there's not a big argument to be extra hawkish here, and so maybe for different reasons, the directional move here is to the downside. I know people are wondering, why, why, why listen to this indicator? Right? Look, it has nailed these directional calls as far as I can remember, which is roughly to the nineteen nineties when I started doing this, and big calls more recently would
be in twenty one to the downside. Very critical call was in early twenty four that we were going into sticky inflation, which just messed up everybody. And here, with all the presumption that tariffs are going to bring this inflation spiral to the four, the indicators are moving to the downn side. So yeah, we had some goods inflation over the summer, but core inflation is just going to sit there and simmer for the time being. It's not
running away. Services inflation is actually easing a bit here. I think the consumer the economy just can't bear it, and so try as they may, and they will try. All the businesses are going to try. They're not going to be able to push it too hard. Consumers may ultimately pay the price here, but inflation is not going to run away.
Interesting, So I mean, so does that suggest that again, whoever through the supply chain, the importers, the distributors, the wholesalers, the retailers, are they kind of all in some way, shape or form eating that margin.
Along the way. I think eventually it gets to the consumer. Okay, look at the end of the day, we all pay right, and we are there's no free lunch, Sure we are, But the inflation spiral, which is that's the bogeyman for the Fed. They're free. They're like, wait, wait, wait, is there some if we have a step up in inflation, does this the beginning of many steps up? The answer, as far as we can see with the cyclical stuff is no Now. Remember you're talking about regime change. I'm
looking at the screens. They're all regime change on some way or another. Think back to the early seventies. I want to go to old times for Tom here. Okay, think back to the early seventies. So so Nixon comes in, He's doing all this stuff. Everybody said, this is superinflation. Are it? Ultimately was, but not right away and on a cyclical basis, we're looking at a few quarters.
That's not the trade and latsy. What's so important here is how the corporations adapt. You're basically saying, everybody, calm down, what's the history you see at the Economic Cycle Research Institute, all those corporate clients that think your God, your religion, how do they adapt to this?
Make hay while the sun's shining. I think the wheels aren't coming off right here. I think there is a little pricing power with the sticky inflation such as it is. Take advantage of it as best you can. And you're seeing some of the companies you were just reporting trying to do the best they can there for the time being. The consumer writ large, that's wealthy households and lower income households are bearing it. Okay, I am not sugarcoating what's
going on with the lower income households. They are under a great deal of stress here and that's not going away. That'll continue.
Retail sales going to get that today, still calling for some decent growth in retail sales. I kind of guess that goes to.
Your call on the consumer there. Yeah, they're gonna Nobody stopped yet, nobody stopped buying yet, and so you still have jobs growth even though it's it's it's in an easy trend. It's not collapsing.
Uh.
These are all parts. So so we we have the stag part right, things are slowing. Ye, don't have the inflation cycle, right, we know no inflation, no inflation part right here. So if you're in the federal reserve, I mean, yeah, I just.
I guess it's another reason to just sit on your.
Hands, right, He's going yeah, I mean, look, you know, sit on your hands. He's gonna take it because he's he's, you know, as the he's the lightning rod for the moment he does a job, he still has a job. He'll he'll ride it out. Ultimately, the president will appoint someone more dubbish. It's his remant to do that.
He's going to do that.
You know, really big picture, do you want I want the administration capturing the Fed?
Yeah?
Probably not. And that's what the market gets freaked out about. So yesterday you see the reaction, and today there's a sigh of relief. I mean, you don't want to be Turkey today. You don't want to be the Fed. Back in the twenties, we.
Got to run. I want to get a summer in this. So you have no recession call within all your different cycles.
Not no, no, no. In fact, there's a few right spots ail.
There, like a year ago.
Yeah, everybody calm down, Yeah, everybody calmed down.
Okay, love turn on Tom. Thank you so much.
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 say Alexa play Bloomberg eleven thirty.
I was on Fifth Avenue sort of uptown a little bit looking down and there's a Lewis Viuten store. They did. It's like a luggage thing. They redid it to get an update here in the summer on the state of retail, and Telsea joins US Telsey Advisory Group. Luxuries a little bit weak, Dana, are the fancy people shopping at Walmart?
There is a trade down And frankly, thank you Tom for having me. Hope your summer's going well. Yes, there has been a trade down that's going on. Look what you've even heard Walmart say where some of the biggest parts of their growth are coming from their hire income consumers. But you know, you've had two reports last week. You've had Brunello Cucinelli who talked about double digit sales. Yesterday you had Richmond. Yeah, the jewelry business overall was up
eleven percent, continued the momentum from the prior quarter. And frankly, every region in the world was up six Every channel was up six percent in terms of wholesale retail on online. When you look at the regions, Japan was down because of a fifty nine percent comparison. You have Asia Pacific right basically with flat even including a seven percent drop in China, and you've had the Americas being pretty solid along with Europe. So it's the halves and the have nots.
Right now, I agree with that, and I totally buy into it. Lisa was talking to me, Lisa Matteo, and you know, she and I remember back, you know, and well she doesn't remember. I remember the nineteen seventies and at Richemonk Cardier comes out with the Love Bracelet, the Medium model. This is a love collection. It's an iconic symbol. It's six one hundred dollars on your risk. That stuff's moving, Dana, isn't it.
It is that stuff is moving. Iconic heritage means something. It can be sold. I think you're going to see that from her mez Alsough. But overall, the rate of growth for many of these companies still is slowing from what had happened.
If Lisa Matteo had the Love Bracelet from Cardier, are you telling me she'd sell it at the real reel?
I think you want to keep it. Why do you ever want to sell the Love bracelet?
Exactly?
Dana, talk to us about kind of the you know, the other side of the equation, the folks that are maybe on struggling a little bit economically. How do we see that in retail sales? Because I had a pretty solid retail sales number just here a couple of minutes ago.
I know I've saw the retail sales number two. It is solid. I think overall what you've seen, you've seen that trade down, whether it's the dollar stores, whether it's the discounters and off price. Value is definitely winning and that lower income consumer, the strength of a labor market allows them the ability to spend, but perhaps the discretionary spend isn't as great. It is spending on essentials where
you're seeing prices go up. We have a pricing tracker that we put out every Tuesday, eighty different items, the same eighty items. We've been doing it since the middle of April, and we haven't seen such a big change yet. We saw some footwear changes on the ons and the hookahs and the ugs, but you haven't seen a lot yet. And as we move through, we think the higher priced inventory will come in and then you'll see some changes, but that's still to come.
Dana Telsea, with immense respect to your family's heritage, re apt around Bergdorf Goodman. Where is the department store across this nation in five years?
Smaller than what it is today? But smaller it's getting even smaller. And look what you're seeing. You're seeing brands themselves open up their own stores and becoming much more integrated with figuring out who their core customer and community is. There's still going to be a place for relevant department stores, and certainly blooming Dale's what we're seeing Nordstrom do. They're having the opportunity to capture more contemporary brands and they're
taking advantage of that right now. So I think it will be smaller and they'll know their customer better and hopefully be more relevant for some of them than they are today.
There's the operative Dana Telsea.
Exactly to every major retailer around the world, how are they What are they telling you in terms of their ability to maybe take these tariff costs into their own P and L versus maybe passing along to their consumers. What are you hearing?
I'm hearing about a third to third a third. What I'm hearing is that a third of the change is going to be diversifying your sourcing. For example, whether you go from China, whether it's Cambodia, whether it's Vietnam, and knowing that every place is going to have some type of a tariff attached to it. But with the one thing they're all saying is you can't come to the
US because the prices would go up that much. The second third of it is sharing the cost with the manufacturers, and the third third of it, the remainder, is raising prices, which none of them want to do. And that's why I don't think I'm seeing it in my pricing tracker yet. But the level of price increases that we're hearing at about, is it a mid single digit price increase with US?
We're going to continue with Dana Tel's just Scott Kirby pilot for United Airlines coming up after MS Telsa, Bloomberg surveillance on your commute across the nation, Bloomberg surveillance on an elevator at Bergdorf Goodman. Right now, Dana, help me with where the Chinese are shopping? Like Reachmont comes out and they're all going to come out? Is it basically the zeitgeist says, Oh, China's flat on its back, except they're all shopping in Tokyo and Kuala Lumpar. How does that work?
Well?
Overall, they may still be shopping, but Japan has slowed because you're going up against the huge comparisons. They may still be going to Japan, but it's not an additional uptick from what you're saying there. And also it's the same thing with Europe and the Americas. A lot of them are shopping more within China than they are shopping outside of China, and it's something that's being watched very closely.
I think that as we move through the earning season, I think there'll be more discussions about, well, when does the compare and stabilized so you get to flat and we're not there yet, Dana.
Most of America, Walmart target those types of places. What's the business like there these days?
Feels very solid when you think about Walmart, and Walmart keeps taking share. You're seeing it with new brands, You're seeing it with pricing. You think about what they can do also with online. Look at sixty percent of Walmart's sales or food, so they're destination for goods and for essentials, and it seems like they're a share gainer, as are the off pricers. I think Target overall is still working to find it's footing given the miscues that it's had.
Let me the blue Button the Detroit Lions Blue button. I got to get this in for Lisa Mateo. Dana Telsey Gingham is so in what is sex that they have that they're doing with Gingham this summer.
For Lisa Mateo, I think you're get to see more gig him. It is popular, But you know what the hottest trend is absolutely have you heard about La boo boos?
Is Joe Feldman? Is Joe Feldman covering La boo boos?
No, he's not covering labuobus. But it's basically there's la boufous, which are the fakes, there's La boo boos, which are the reals, and try to get your hands on one not so easy. But that is the hottest trend out there lately, and it just started in twenty nineteen.
I held in my hands last night a gift from Shanghai, China to afterthought. She was so happy. It's a light blue it's like a rarer La boo boo and she's worried of wearing it on her bag because it's not the bag will get stolen after thoughts doing product? Are you kidding that way? But you know the laboo boo is the issue Dana Telsey, thank you for that nugget.
Is information, absolutely great.
She is the best. Dana TELSEI on the retail pulse of America, from Joe Felman's Big Boxes over to what luxury is doing here a black Away on Fifth Avenue.
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This is a conversation of the day on multiple fronts. Francis Donald's work is exquisite in RBC Capital markets and now we're going to overlay all of the research abilities of the Royal Bank of Canada. Francis on tariffs that are eighteen percent bundled down from twenty percent bundled. That number will change tomorrow, but it's not three percent. You and your company are living this across the border down to windsor across the British Columbia. Are these double digit new tariffs doable?
Well, We're gonna find out tom.
And it's a great experiment.
And what I.
Think is critical is we are in the largest trade shop in one hundred years for the United States and the rest of the world. And it is far too early to assess what the impact will be when late into Q three and the full impact, the full story, the full study of tariffs. I don't think we're going to feel comfortable saying how meaningful this was on the US economy until late into twenty twenty six. Why, because there's a significant process in play here. There was massive
front loading into the economy. Inventories are very very high. Those inventories need to be depleted before we start seeing imports at those higher tariff levels. Then you have to make an assumption of who's going to end up paying for that. Is it going to be producers or the importers themselves? How much of that cost is going to get passed on to the consumer. We're at the end of the story, so they're two most important macro questions in play right now for an economist is how long
does it take for inventories to be depleted? We think about five months. Marry, it matters greatly which sector you're in and how much is going to get passed on to the consumer. And if I am a tom, let me push back. I hear a lot. I don't think consumers are going to take the brunt of this. Producers or businesses are going to absorb the entirety of it.
Is that really bullish? Do we really like the story that businesses are going to see all of the tariff impact that they won't pass it on to the consumer. Because if businesses are taking on that tariff impact, that means margin compression for them and they're going to have to cut costs another way. So, Tom, do you know the old school trolley problem pick the lane between. You go down one track and you're on one track and you hurt one person, or you go down another and
you hit one hundred thousand or whatever. We're on a trolley problem in America right now, which is we're either going to see the costs of tariff passed on to consumers and they'll face higher inflation and prices, or we're going to see that absorbed by businesses and that probably leads to job losses, or we might end up with a little bit of both. And I don't think we're really going to be able to answer that question into well into twenty twenty six.
How are the folks in your Canada thinking about tariffs in the trade situation, trade politi with.
The US, Well, Canadians are actually thinking a little bit less about trade policy now, which is a huge one eighty over where the country was in February when it was the largest victim of American trade policy. Now Canada actually has the lowest average tariff rate of all countries that the United States trades with. So if you're looking for shelter from the trade war storm, Canada surprisingly ends up being where you want to be. Of course, still
very painful for certain sectors in that country. Steal and aluminum for example, copper are going to be getting some attention, but right now the focus has turned towards other issues in play. And it's just an example I think of how quickly the tariff story can go from being disastrous to actually being more of a cut on the arm.
You get you get, say, economic data today model at real GDP forward phenomenal GDP as well with the inflation overlay.
So we're looking at real GDP roughly between one and two percent by the end of this year, let's call it one and a half percent. And I like to simplify this too, are we growing below two percent? Or are we growing above two above two percent? And to my excellent quality in equity strategy, Lori Calvacino, we talk about this a lot because we have to have a sense if we're growing above two percent, your economy is accelerating. It tends to be bullish for asset classes. We're not
gonna get there this year. You've got a moderating consumer. Even though we had stronger retail sales today, you got some weight coming through from trades. And then on top of that you have housing, which is really a lost growth engine in the US. So it's hard to get above that metaphorical or that literal two percent number. And that's always how I think about the US economy is are you below zero, in which case you're in recession,
or are you at that critical two percent level? And I just can't see it for twenty twenty five, unfortunately, Francis.
How about the US labor market?
Here, President Trump and the administration has effectively closed off the southern border. How does that impact the labor market if at all? I'm not sure.
Oh, it impacts the labor market, especially within the context of what we call the most important American theme, that nobody talks about, which is America needs workers, not jobs. It is seeing aggressive and accelerating mass retirements. Two million Americans are retiring every single year. That's getting bigger. It's distorting a range of figures. We've got three retirees for every one unemployed new entrant in the US right now. You've got a skills mismatch occurring across this labor market
as we have exceptional needs for healthcare. Did you notice that about half of the job gains in the United States right now are going into the healthcare sector. That effectively means that your job market is no longer a helpful cyclical indicator. It's getting bordered by these structural themes, and immigration is going to exacerbate some of these problems.
Are you following the fed derby? What is your advice to our listeners and viewers, in particularly your advice council to Global Wall Street and monitoring the Trump Powell escapade.
Well, here's the advice I give myself when I wake up and see the news headlines, which is, remember focus on the data. And my strong suspicion is that the inflation data will be the make or break on what the FED does this year, not who's in the position, not who's criticizing the position, but what happens with the American economy, and our sense is that inflation is going
to reaccelerate into your end. Those structural factors are going to keep a floor under the labor market, make sure that the unemployment rate stays low, and that's going to make it really hard for anybody in the Federal Reserve to cut rates. So even though yes, we're seeing some noise, it matters. We're thinking about the value of the institutions, the relationship between monetary policy and fiscal policy, that critical
FED independence. At the end of the day, the FED outlook, regardless of who's in the position, comes down to the data. And we can say that Tom, you and me because we've lived through many cycles and whoever's in the position, Sure there's a bias, maybe it changes twenty five basis points here or there, But the future of the American economy rests on these broader themes. That size of the deficit mass retirees not necessarily holds up.
Just as an inside the central bank, independence of David Dodge's Central Bank of Canada is more independent than the history of the Bank of England, isn't it. I would suggest the Commonwealth had a more independent central bank over decades than the mother country.
Well, that's an interesting takeaway. And the other one is that most of the central banks you're referencing are have solely one mandate, which is inflation targeting, and as a result, it's easier for them to do.
We have a new third mandate called Donald Trump.
Well, it makes it more complicated for a federal reserve that's going to be balancing a dual mandate and political pressure and financial stability risks. I would rather be a Bank of Canada or Bank of England central banker right now than a federal Reserve member.
US consumers hanging in there with sell some retails sales today there, I mean, I mean, it's just I think it's just amazing how strong, relatively speaking, the US consumer is today, given some of the uncertainties after in a market place, it just doesn't feel like it's playing out in the daily behavior of yours consumers.
Do you know the first thing you learn when you become a US economist day one on the job. They bring you on the desk that set you up with your Bloomberg terminal, and then they say, first rule, never bet against the US consumer. This is the first rule of US economics.
So what is the state of the US consumers. It's partitioned into two.
Americas, that's right. So we refer to the US economy right now as not one economy, but two economies, two Americas, and the evolution of what we call the K shaped economy. When I look at this consumer we have to be really cautious not extrapolating high numbers for retail sales, both because the cycle is distorted by these tariffs, but also because we know that they're being disproportionately supported by high
income households. And so if you're trying to for past the American economy right now, you have to spend a lot more time thinking about that top ten percent than the other ninety percent. But if you're a business and your end clients are not the top ten percent, if you're a policy maker and you want to make the lives of Americans better, you have to be cautious about overinterpreting these strong consumer numbers as being representative of the whole.
So if you're the Federal Reserve, you see these strong retail sales numbers. You see moderate inflation. Maybe it's kicking up a little bit in some parts of the economy. Growth is slowing, but there's still growth. What I mean the Fed, I mean just stay on the beach and not do anything, stay on the golf course, not do anything right.
Well, the RBC call, in conjunction with our head of US Rates Blake Gwyn, is that the Fed can't really do much until December. They won't have to win until December December first, and that's just effectively a time to gate issue. We don't have enough deterioration in either the inflation data or the job's number to give enough of
a mandate. But it's clear to us as a team right now that this is a said that wants to get back to a more neutral level of rates, and there's a bias towards as soon as the data allows some permissions to move in that direction. And that's why the cut bias is still in our outlet.
I get one minute, where's capex? I mean the AI think brook is out of the huge report today. Where's capex? According to the Royal Bank.
Canada, another structural trend that we should not be downplaying and making sure that we continue to disaggregate between the structural and the cyclical. But this is one more example of that structural trend of AI development in Capex keeping a floor under how low growth can get with a seven percent deficit to GDP from the government, an ultra wealthy doing very well top consumer, and then the Capex AI story. It's really difficult to get a decline. So
we are watching, of course AI really closely. But one thing I got to say, Tom, is there are limitations on this watch. The electrical grid. We think about that more than we ever have before in US economics. How much expansion is there?
I mean, Texas sort of needs in Ontario Quebec Hydro. Dan fuss Up at Looma Sales was a majority shareholder at one point. You got a well run grid up there.
Right, world needs Quebec and Ontario type electricity. It's some of the most renewable, reliable, and cheap in the world. And you may not know this, Tom, but there's currently a plan to build out the electrical so that in Manhattan itself, twenty percent of electricity going to be fueled by Quebec, called the Champlain Project. So when you turn on your lights or turn them off or bring your AC on. I want you twenty percent.
Of why there's all the construction on fifty ninth Street. You can't even get down the DM streets because of Quebec hydro.
Quebec hydrobec hydro. Something to pay attention to on a good Now?
Are other people very good?
For instance?
Take you so much? Fransis Donald RBC.
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 say Alexa Play Bloomberg eleven thirty.
My Newspaper's Lisa Matteo highlight of the day. She looks at forty two different newspapers. Do you really read lamand and French?
She does, of course, Mercy.
Mercy, mercy. Okay, what do you got today?
Okay?
You've heard of diamonds are a girl's best friend? Right, it looks like lab grown diamonds are actually this best friend. They look the same, apparently, they're.
Just as strong, exactly the same, Yeah.
But a fraction of the price. Yes, and that is the difference, and that's the problem. We had the CEO of de Beers talking with the Wall Street journals.
He's fired up.
He's calling it a need a survey to say, just give me a one hundred women, saying if you're off you.
A you know, a ring engagement?
Na?
Yeah, but is there something you'd like to tell us?
I'm wondering would women accept the lab grown diamond versus them?
Okay?
Are you are you going to take a carrot and a half lab grown over some joy from Beers fero point seventy five carrots?
I would save the money and put it towards somewhere else.
That's what I would do.
And it's my.
Girlfriend I would tell And that's what it's saying.
It's you know, you have Signet Jewelers, right, they partner with the Beers. They did this marketing campaign. But if you look at Signet even they're starting to add these lab room.
Their two carrots.
It's two carrots. Okay. Have you seen a movie in imax? Have you had that experience?
It's right, the big screen, you get the whole theater, the business behind it. Okay, so it licenses technology to theaters, right, It generates more than ten percent of box office blockbusters, and it attracts major filmmakers because they use their technology. So who doesn't like it? Are actually the movie theater
chains some of the largest US theaters. You have, Cinemak, Regal, Marcus, right, they starting to tell what what sources are telling Bloomer is that they're holding these talks about doing a joint marketing of their big screen theaters. Because if you go to Cinema for example, my house, we go to Cinemak, they have their big screens. They call them x D right, that's their Imax. You know, Regal has r p X. They don't use Imax technology. They're not as big as Imax.
But the chains are starting to say, you know what, maybe we should unite around one brand it together.
Yeah, you two are too young for this Cinerama, which was a failure. The first day it came out. You could see the scenes, the vertical scenes on the movie screen where they're trying to widen the image or whatever. I mean, Paul, does do people really want to pay up for Imax.
Versus They absolutely do for the big you know, big blockbuster kind of movies.
You know that kind of thing.
Okay, so these are for all the space junkies out there. A massive rock from Mars it landed on Earth, just sold for a record.
Okay.
So the backstory is it broke off from Mars when an asteroid struck the planet.
Right.
It's fifty four pounds about fourteen inches long.
It traveled to the Earth.
It landed in a desert in northwest Africa, and some meteorite hunter found it back in twenty three years.
I saw this.
Because they tested and they take a sample of it and they test it and it has the same substances that the planet.
Mark Damon doesn't have anything.
Nothing.
You didn't sign off on this, but it did sell.
Southby's had an auction, okay, five point three million dollars.
This is a record.
I mean it's so it's like somebody puts the hunk of Mars in their rock garden.
You know, fine, I mean all right, I mean I don't know how you figure it out, but all right, go for it.
And it is a market selling meteorite.
We've generated a heated response. Thank you across this nation and worldwide for listening. Nobody cares about Glenn Hubbard or Steve Lakeley was brilliant on ETFs and fixed income Sarah and the control room goes, yeah, I'd go for the lab Grown. Look, we got a huge response.
Sarah's the plot.
I know, I know.
I said I would tell my son for his girlfriend, stick with the lab Grown. Save yourself some money, put it down toward a door.
I'm paying for a house.
Or something interesting. I took some of my Merrilynch investment banking bonus.
Right, Okay, listen to toils. The newspapers thank us so much.
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