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We are advantaged with Neil Dot of Renaissance Macro. Neil, you were my economist of the Year with resilient optimism in the depths of COVID. You've turned more cautious When I see a stock market go to record highs, how can I be cautious?
No, it's a great point. I mean, and clearly, Tom, the pain trade is stocks go higher. I mean, you have the market at basically new highs, and you know it looks like bear's out number of bulls, so that's, you know, I mean, pretty good sign the pain trade is higher.
You know.
Look, I mean.
You know the I think you know, the stock market is a very useful discounting mechanism, so it's always important to keep an eye on it, especially when you have a cautious economic view like I do. But you know, it's also worth pointing out that it's not a perfect discounting mechanism. Right, So when I think about why stocks have gone up, you know, it's earnings rates and risk premium and earnings estimates keep going higher. Has been coming down.
You know, you're getting soothing words on trade and interest rates have been coming down as the market's bet. You know, I guess more in the direction of our FED view. So that's what's powering the stock market higher, which kind of raises the stakes for what earnings looks like going forward. I mean, obviously, economic data generally over the last number of weeks on net has been negative, and you know, you'd expect, you know, some of that to bleed into.
The way, doesn't David Dona just reised Jeff de Graf's research. Yeah, he doesn't know anything about this stock, right, he just listens to the graph.
David gir I love that you call your it was your formerly your economists of the year. Do you get a trophy for that? Is there like a no, he gets a beverage of beverage of his choice at the the time of his choosing. You let me stick with the soothingness that you talked about in terms of the rhetoric that we've heard from the FED on and what
we've heard from policymakers on tariffs as well. How much of a disconnect is there as you see it, between what we're hearing from from them and as you see the state of the economy today.
Well, I mean, my big gripe is really the state of the economy as it is not so much what tariffs are doing to the economy, because, in my opinion, I mean, before tariffs even happened, I mean, we were talking about a frozen housing market, a frozen labor market, a capex cycle that was really just about tech not much else. And uh, you know, I mean, tariffs make
that bad situation worse. But you know, look, I mean, David, I mean for the US economy, what I'm really focused on right now is the ongoing deterioration in labor markets. We have continuing claims rising to fresh highs week after a week. That means that unemployment is probably going up, and housing continues to get worse, particularly new family housing. Right so, that to me is an important thing to consider.
I got a year over your PCE coming up here in one minute quickly Neil dot A thirty seconds two point one percent to a surveyed two point three percent. Is that on the edge of stagflation inflation?
No, I mean this would be the third consecutive month where core inflation is running point one, I mean stagflation. We have more stag than we have flation right now. So yeah, deflation, theflation part is very much in the range of a forecast. And I think it's important for people to explain why the tariff induced inflation likely is anything more than a one off.
Nil douta with Renaissance macro nailing the stag of stagflation. I see real personal spending with a negative statistic Neil, what does that signal for future GDP?
Well, it's going to mean that you're going to see some downward revisions to estimates of GDP. And remember that
the estimates weren't that strong to begin with. You know, I'm a little bit surprised that the consensus missed the real consumption number because we did see unit auto sales come down quite meaningfully over the month, and so you know, look, I mean, if you look at this data, what it shows is real consumption came in a bit weaker than expected, and core inflation came in a bit firmer than expected. So without having you know, dialed into all the details.
It just tells you that consumers are resistant to higher prices, right, and that's because ultimately consumer you know, inflation, in my opinion, really boils down to the household budget constraint. You know right now, you know if you look at real income NETA transfers, that's up only one and a half percent against last year, and you know that kind of sets the table for what what consumer spending will more or
less do. And you know you're talking about, I think, at a minimum of a low potential growth.
Environment, David Gerr. I see the line item in PC. There's like two hundred line items and there's one for summer camp. Would you care to comment on that.
I'll strained all my resources now that I have two of them going. But no, that's that's an extreme one. Let me go back to the housing market, which you mentioned just a moment ago as one of the two things that you're you're kind of focusing on and suggesting counseling us to focus on here as well. How big a drag is that likely to be on the economy. More broadly, you're looking here at sort of new home starts and projecting a lot of nuance into the way that we should be thinking about them.
Well, sure, I mean, remember this is on the first time during this cycle where we've seen residential investment go down. The first time was back in twenty two when the FED was gearing up massive you know, rate hiking campaigns, so they basically crushed home sales. But what was important about that period was you were still in a situation
where you know, home units under construction were rising. Right now, you're in a situation where housing starts are running, you know, below completions, which basically means that units under construction will continue to come down. If you look also at the slack in the new housing market, you have you know,
essentially cycle highs and unsold new housing inventory. So that kind of begs the question as to why builders are going to break ground on new homes to start with, because it makes much more sense at this point for them to kind of sell out of the homes they've already made as opposed to breaking ground on new homes.
So that means units under construction will keep falling, and that, you know, sort of begs the question as to what's going to happen with construcuction employment, which has been you know, relatively uh, you know, hanging in there, you know, over the last number of years or so. And then you talk about, you know, home prices are are are declining, uh, you know nationally, particularly the south and the West, which
is where the builders have been making the home. So I do think that construction activity and residential is going to be coming down, and I think that's going to have effects on unemployment over the over the coming months.
Neil dudda with us is the renaissance macro.
We continue commercial free for through a good part of this hour, I should say, lots of economic data coming up next week.
David Girl, one more question for mister Dutta. Neili.
I listened to Mary Daily yesterday on surveillances. I know you likely did as well, and she talked about her modal outlook has been for some time we would begin to see be able to adjust the rates in the fall. She hasn't really changed that view any I'm curious, sir, what what your hearing or pulling from the commentary we've heard from these FED officials and what sense you have of their path going forward here?
Well, David, as you know, I mean, if you put two economists in a room, you're lucky to get four opinions, right, So, and I think that's kind of where you're at right now with the FED. I mean, you have a very kind of bimodal sort of distribution. I mean there's some that don't think they could should be cutting at all, and there's others that think that maybe two cuts are likely, some thinking they should start sooner than later, you know.
To me, I think what's important is what Daily said about tariffs, because she basically said that, look like everything we know about this means it's going to be a one off. So why are we holding off on easing if you know, given that that first principle. At the same time, you know, we know that unemployment is going higher, and you know, if the FED has been saying for the longest time that the labor markets aren't a source
of inflationary pressure, I agree with that. But if unemployment is going higher, maybe the risk now is that the labor markets are in fact becoming a source of disinflationary pressure. And I think that's something that they need to heed.
Interesting. Neil Da, 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.
I have been.
Waiting for this interview right now in the studio where this Monica Briguerrera compliance.
Called for you from Morgan Stanley and beg, beg begged. Don't ask her. You have real world New York City service. Yes, everyone talks.
Monica Guerra does Corrine Headgar in a Boston Globe today as a blistering essay, I'm the gentleman who just won democratic primary.
Here.
Can you fathom where we will be if mister mumcdoney is elected mayor in November.
Where will people like you in the machinery of city Hall be in February or March of next year? Any idea?
Well, I just want to clarify I'm no longer working for city Hall. R Morgan Stanley's opinion, you know. But one of the things that I think was interesting about this race is that it seemed that the sort of democratic socialist label didn't really matter, right, that there is a desire to have New York City be more affordable. That's what I saw people running towards. Now what does it mean long term? One of the biggest questions that we're thinking about from a markets perspective is what happens
with free bussing. How do you get there?
Right?
And that's a big and that's a big question because if we know the MTA right is both a city and state run entity, and there's a lot of debt, there is a lot of fiscal pressure and how are they going to get there? So for me, my question is what does the bonding situation look like long term and what does that mean for credit spreads?
So there's adult talk, folks.
Here's what we're to do when David, when she gets a day off from Morgan Stanley, she can come in with her flip flops and we'll talk to her about You said, why did you begin an adult interview?
David GERA, I'd love to talk a bit about trade, first of all, and we had this interview yesterday. Howard Lutnik was on with Kaylee Lines and Joe Matthew and what he allowed during the course of that interview was that the US and China had signed an agreement we can call it a deal framework of a deal. What have you seeming to codify what was discussed and agreed upon in Geneva and then in London after that? Where
does that get us? As we kind of push headlong, were less than two weeks away from July the ninth, which is when this posit the President put in place on these reciprocal tariffs ends and I should say China's exempt from all of that. Where are we now? And as we see the market move on that news from Commerce Secretary Lutnik, what does it tell you about progress and process and where things are heading.
I think it tells me that Marcus been essentially waiting for any news, right so anything to hang their hat on, any piece of certainty. And so if we're thinking about this framework, the only I think some of the details we know have to do with rare earth minerals concessions, right,
there's very very light information on what's in there. The interesting thing about this is that even though we have sort of a black box on all of the other negotiations, they have said that they're willing to kick the can on the ten percent. So we know that there is essentially a set baseline going forward and that the rest
is just right this negotiating piece. We think that ultimately you're going to land lower closer to ten percent than say thirty forty percent in some instances, depending on the country. For us, this means positive market response because you're not getting the worst case scenario.
Right.
Markets have essentially adjusted and priced in this activity. But it also means for us as investors, right, is that we know which industries, which sectors are going to be the most impacted, and where we have status quo.
I was at the seven summit, and so I watched as the President left, and there were all these disappointed delegations who had blown great distances, spending a lot of time on airplanes with the hope that they could get some time with President Trump and his team to talk through these trade deals. As you listen to Secretary, let me talk about how we're close to these ten deals, ten major trading partners signing deals. We had Scott Bessent on Fox Business this morning talking about all of this
getting wrapped up by Labor Day. How much has all of the activity of these last few weeks. So that's the G seven, that's the NATO summit. Of course, all that's been happening in the Middle East set back this timetable. How much realism is baked into the fact that we could get some deals here sign soon.
I think that it is real that you can get some deals signed soon, especially by August. The fact that they've pushed out that that deadline, and I think they'll continue to do so.
I don't think we're.
Really beholden to any specific timeframe other than that if we're looking at the tax bills, so I'm going to shift Turkey to OBBB, you know, the one big beautiful Well, if you're looking at the fiscal hawks and getting them to the table, there has to be some sort of assurance, right that they can offset some of the debt and deficit.
And so while we may not know what those specific parameters are, we do have a baseline expectation from the CBO of what types of revenue could be raised an event of heightened tariffs.
It's Friday, Might Brain. You're killing me, David.
All this stuff is way too nerdfest Monica. Are you concerned about our debt and deficit? Or do we just you know, the proverbial little g we just continue to grow our way out of this mess.
The idea from this administration is yes, they will. They want to grow their way out of this.
I know that now every administration since Zachary Taylor and Tyler Taylor.
I remember John.
Tyler Thomas, Jonathan Taylor.
Help me or right now, we're going to grow our way forward extended protection.
So let me just put it this way. I'm not a modern monetary theorist. I don't prescribe to the the idea that that doesn't matter.
Now.
What I do want to highlight is that you have to have growth at levels that outpace the pace of interest expense, right, And so if they're able to get that balance correct, right, if you get the GDP to interest expanse balance correct, then essentially you can keep going for quite a while right on this productivity promise of the United States. So we don't actually see that cracking yet, but it is still a problem.
Medica, Greg got twenty seconds free bussing. Come on, we can do this over a cup of sanc. It's not that on a bus. Yeah, No, I haven't been on a buses.
Pro Buses are great free bussing.
The rich pay for it, but they know it's a dedicated text. They know every dollar of that tax is going to buses.
It's a layup.
This is the thing. There's a lot of transportation holicies that seem like layups, you know, when you're thinking about congestion pricing from a hocals perspective. That was a layup. It wasn't. It had tons of hiccups with people that you know, proposing views. So not everyone is going to feel that. You know that they're willing to be altruistic and you know, support free bussing.
We got to go. This is br Please come back like Monday, Monica.
Your face the roseve Island tram Right, I got a problem.
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 Huch.
We're an international brief and we're so honored to have her in studio where us. She was just a workhorse through COVID free of beamis with US chief economist Ts Lombard, always and forever of London. When you say to an American you have to focus on the Pacific RIM. Let's start with a why for you, you know, Trump trade tariffs and all that. Why should we pay attention to the Pacific RIM in the second half of this year. Yeah.
I think that nexus between the US and China is one of the things that's really changing and shifting in terms of the axis of the global economy. When we think about the underlying drivers of some of the big shifts that we see in the thing that I hyper fixate on, which is bond equity correlations, the underlying driver is the political economy inequality of both.
I saw another jump condition in Taiwan dollar today, way outside two standard deviations take currency dynamics week dollar over to some of these almost jump conditions in specific room strength over to equity bond correlation.
Okay, so I think, all right, let's do this. I think what's happening here is is in the currencies outside of of the M and B within China. Like, I just don't know why the administration wouldn't consider the currency as part of trade deals when when you're considering China it's a slightly more I guess aggressive proposition.
But you know what.
The Taiwan has had this current account surplus for years and years and years. It's a massive percentage of GDP. Why would that not be a part Why would the currency not be a part of the of the deal. And I think sort of what's changing here here I go to the bond equity correlation, is that we're we're shifting away from the hyperglobalization that has sustained those current account surpluses and into a world where the policy reaction to the hollowing out of Detroit and the rise of inequality,
the policy reaction is negative supply shocks. Negative supply shocks push inflation into the system, destroy demand, and turn the bond equity correlation positive because the investors need more to compensate them for the deterioration of the hedging quality of
the of the bond. And so the likelihood of those negative supply shocks is just higher now than it was previously, not least because we're moving from a unipolar global political order to a multipolar global political order, which also has
a lot of consequences in that specific rim area. So this increase in instances of negative supply shots to me, and this is where I have to be very careful about sort of my truth on a three year time horizon versus what actually gets priced at this moment in time. To me, that means greater likelihood of negative supply shots. But just as in the eighties it took quite a long time for people to price out term premium, it's going to take quite a long time.
To take longer than the modern media.
Thanks David, I'd love to stick with that, which is your overarching thesis that move away from a kind of unique polar world to an artipolar one. And so when you look at the weakening in the dollar that we've seen, is it part and parcel of that. Do you see that as kind of emblematic of maybe more near term or shorter term phenomena or is that part of this kind of broader thesis that you have.
I think it's definitely part of this broader, broader thesis that the underlying sort of driver of the dollar standard and the strength of the dollar is the fact that the US economy is just more dynamic. It's able to sustain higher private consumption led growth without creating inflation, and so risk adjusted returns in the US have just been higher over that period of time. But I think what's what's changing now. The US is going to remain exceptional.
It's just not going to be as exceptional as it was in the twenty ten exceptionality exactly right. So I think, you know, the underlying causes of the strength of the dollar is not so much on the trade account like that seems to me something that's sort of flapping in
the wind of capital flows. And it's actually capital inflows predominantly actually in the last decade from Europe rather than the Pacific rim that have have helped to cause this this kind of strength of the dollar and the outperformance of US assets to the extent that they contribute there
there as well. And so that's that's also unwinding and reversing because US risk adjusted returns are coming down relative to the rest of the world, where US risk adjusted returns are probably better, and partly thanks to the partly thanks to the kind of the chaos that is created by Trumpian policy in Europe, but also thanks to the rise in inequality and the rise of the AfD ten percentage points in the German elections and Russian threat.
Can I ask you about what's transpired over the last twenty four hours We had the Commerce Secretary on our ara yesterday evening and he said there's been this deal that's been inked, which I guess is codifying the agreement that took place in Geneva, and then was react in London. Great enthusiasm it scenes in the market because that's an
indication of something. What is the something that you see that indicating bringing to bear your experience tracking what's going on in Asia here, it seems to me it's a very basic thing that's been to agree to, which is a continuation of talks and I guess more openness to some bassets of trade. What exactly has been inked here and why is that so significant if at all?
Yeah, I guess the big kind of push point that could shift in terms of the actual rate of tariffs that's going to be charge on China is with relation to the fentanyl side of things, which is a big part of the thirty percent additional on China. So that that's maybe where you could get some positive news kind of coming through. But like with all the trade negotiations, it's the July ninth is not like the deadline for
this to be done. It's the deadline for talks to have started, which means again that you just get these kind of uncertainty shocks coming through.
And the time we've got left with all of the Tea Slambard, the heritage of Charles Dumont, what you're doing for you, Beamish, Where do you think the blended tariff level will settle down to? It's seventeen ish now I'm guessing, I'm just making a weekend guess where does that end up?
Does it come back down near two three?
No?
I think there's a there's Tariffs have a multiple functions in the toolbox. One is negotiations, That's what we saw in the first half. Now we're kind of coming through the black process of negotiations. Another is like actual balancing of the US economy, whether you believe that's going to happen or not. But the one with the baseline for tariffs that persists is a fiscal reason and a reorientation
of fiscal policy. And I don't think it's an I don't think it is a coincidence that tax cuts are about zero point eight percent of GDP and spending cuts offset that by zero point two percent, and then it just so happens that tariff revenues as they as they stand would probably be about zero point six percent. And so that helps you to square the circle in Congress between the fiscal hawks and the and the people that
are up for reelection in the in the primary. So I think that that ten percent level is actually quite stafy.
I got twenty seconds. What does labor do in the United Kingdom?
I read the British newspapers and it's as crazy as I've ever seen. It'll be crazy. I don't understand it.
Okay. In the twenty seconds, they probably they probably replicate what Gordon Brown does, which is tell them bond vigilant is what they want to hear, and then spend like a troop.
Okay, does reform is Nigel Ferrari is going to be the next Prime Minister?
Twelve seconds?
I hope not. If Reeves manages to sort of shift past this kind of myopic focus on the fiscal rules, then maybe the economy can turn around.
Thank you so much, Frank. Does that cover the United Kingdom?
Yeah?
It's for thirty seconds, free beamers, Thank you so much.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple, Corplay and Android Otto. With the Bloomberg Business app, you can also watch us live every weekday on YouTube and always on the Bloomberg terminal joining us.
James Steele of HSBC, it's one of the piece platinum or palladium. I think I saw a record high like yesterday or the day before.
Your world's on fire, isn't it? I mean even so over got it going?
Yes, it certainly is.
Come.
The precious metals markets have all been very active this year, well, for very different reasons. The gold obviously, you know, and all the time I've been watching gold and analyzing it, the same twelve or fifteen factors drive it year after year. The trick in analyzing it and trying to get an idea where the price might go is to which of those factors is dominant and which is recessive right now?
And for this year it's been geopolitics and last year as well, and it's been quite a long time since that was in the driver's.
Seat in central banks are still buying at the margin.
Oh absolutely, that's the second issue too. I mean I have no doubt that we would not be up here if it went for a central bank buying.
Now I'm going to get this thing because I think it's so important.
If I look at tell you'red Colorado and the Liberty Bell Mine, which is gold and silver, and it's like, you know, the unsinkable Miley Brown is like eighteen nine, they shut.
It down in nineteen twenty one.
Is there still gold or silver out there? When Gura goes out to Teller Ride.
Well, I don't know about that specific mine. But there's one of the problems with gold. You know they talk about peak oil. Well, I can tell you there's no such thing as peak oil, but there is peak gold. Interesting, we've been looking for gold for five thousand years. We've only been looking for oil for one hundred and fifty odd years. And the ore grade is dropping, it's getting more difficult. We haven't had a mega discovery since nineteen nine.
That's twenty million ounces or more since nineteen ninety seven. So there's no shortage of gold, and I don't mean to give the impression that there is. And mine supply is going up because it's very profitable to produce gold right now. But we do see later in the decade, we see the gold production from the mining side beginning to plateau. And top out.
Let me go back to the central bank issue. And I keep thinking about this Leslie Hook piece in the Financial Times from a few weeks back, and the thrust of that was you have central banks really scaling up their purchases of gold all the while the forecast seems to be they're going to be paring down how many dollars they have on hand. What does that phenomenon tell you or say just about the state of the world today.
Well, that brings in the d dollarization argument, and which we think is gradual. We're not in the dollar, the dollar will cease to be the world reserve currency count at all for many reasons. According to our effects research team, the dollar will remain the world reserve currency. But perhaps every central bank doesn't need quite as many dollars as
it has. And if it decides on a portfolio basis to readjust things, but is reluctant to go into another specific currency, which many of them appear to be, then gold is a marvelous way of slightly dewaighting your dollar holdings without committing yourself to something like the euro, the yen, or another fixed income instrument that you might not want
to own. So it's it's a perfect sweet spot. And when you see geopolitical risks, I mean when you look at the central banks that are buying, they tend to be near neighbors that they may or may not have issues with. They don't tend to keep the gold in that country, see, they tend to come elsewhere.
James Steele with us on your community crascination near June thirty. Here we reset for the second half of twenty twenty five, even looking into twenty twenty six, which I find hard to believe. Futures up twelve up twenty two earlier, give back a little bit, but we'll see how the market opens here in twenty three minutes of sixteen point at two.
Four James Steele. Are central banks supposed to own gold? I mean they have a.
Societal policy to manage inflation and the mandates differ or the jobs market. Everyone new Zealand's different than America.
I get that. But where does it say they're supposed to have Fort Knox.
Well, they've always had gold. Gold was the original some when central banks originated, going back to the Bank of France, the Battle the America, they were all founded on their gold reserves and in fact, it's only been relative.
You you, you, you could.
Almost ask that the currency as we know it now is relatively new compared to their to their gold holdings.
Are their gold holdings now equivalent to what they held in the nineteen thirties.
Well, as far as the actual tonnage goes, they're they're, they're, they're, they're they're greater, but as a percentage of their reserves much smaller, because we've gotten a lot more currency since since since then.
You bring up to your politics, and you know, I take that to mean what's been happening in the Middle East, all of the upheaval that we've seen, the fighting and upheaval. How much does the current trade picture, the tariff's picture, affect the appetite for goldens to what we're seeing in the market more broadly.
Well, it's been a positive for the gold market for many reasons. It feeds into the geopolitical argument as well. Tariffs are arguably disruptive to capital markets, credit spreads, They can ultimately have an effect on equities. All of these things increase on certainty, and that's good for gold.
You know.
It's not so much that gold reacts to good economic policy or about economic policy, although obviously it does, but it really reacts to his uncertainty. And if you look at the economic policy on uncertainty index, and we've done a lot of statistical work on this, the correlation's quite quite good.
Where is gold now in the luxury space?
I mean, you know, we meant in a win tour is finally retiring from Vogue US after a stellar, magical adjustment in jewelry and fashion and all that.
Is in booming now.
Well, at the high end, it's always good because of the income that's allowed to support it, but jewelry demand itself is down double digit. The you don't forget seventy percent of a physical fifty percent of all physical gold demand is in jewelry and silly, yes, yes, half of it. And I'm not talking about you know, hedge funds and
portfolio managers. I'm trying the price millions. It does. But the difference is that on the institution, on the investment level, relatively few players move in and out, and they move a lot of buoyant so they can appear to dictate the price on a daily level, whereas millions of people buy and sell gold, and very fractional small amounts every day around the world, and it can take many months for that to feed in.
David, let's go to our expert on this, joining US Weekend Gold expert Lisa Matteo.
Can you buy gold at costco?
You can buy the bars and you can buy it like jewelry and stuff too.
Okay, David, One more for James Steel.
Talk at the beginning, mixing up palladium and platinum. What's another metal that we should be paying attention to here aside from gold to where have you seen an interesting story merging so far?
It's sorry, it didn't mean to cut you off there. So far it's been platinum, and part of that is the jewelry story, a platinum jewelry, but gold jewelry has gotten very expensive, very expensive indeed, and in price sensitive economies, notably China, there's been there is an ongoing switch now back to platinum. And when you compare the size of the markets, I mean they're much smaller. Platinum is much smaller than gold, and the supply of it is rather tight.
Most of it comes from South Africa, but also Zimbabwe and Russia, and none of them are in a particularly good state to increase output. So the stocks are much lower and the sensitivity to prices higher.
Thank you for this brief. James Steele with us, so they just be seen. Just love having your moon.
This is the Bloomber Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple Coarclay, and Android Atto 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.
Let's get you at the newspapers, Lisa Matteo before she jets to Venice, what are you doing?
All right?
So we've heard about the Trump administration's battle with Harvard, right, David, You've reported on a number of times now. The New York Times is saying the Trump administration putting the pressure on the president of the University of Virginia to step down.
They're currently investigating the school for the DEI efforts. The DOJ is saying that they want that president to step down, and The New York Times is saying that's what's making this different than all the other battles that they've done, because this is the first time the administration has pushed a university to remove its leader. He's been the president there since twenty eighteen, so this is a big move for that. With all the talks we're having courts.
I mean, forget about whatever the name of the school is. Doesn't judiciary just show up at some point.
Well, we've seen that in the case of Harvard over these last few weeks, sort of allowing Harvard to continue to allow international students and for example. But I think that's so fascinating about this story by Michael Schmid of The Times, is just the power that's being exercised on this public state university. As you say, at least bring up the fact that they're trying to get this this leader out who'd been at Harvard. By the way, he'd been the i think the dean of the education school
at Harvard before this. So we'll see where this goes. But sort of you see rationing up here, the administration's kind of device that's putting on these.
Yeah, a wonderful conversation with an executive of a college the other day, it doesn't matter where they are, and we both agreed. It's a world turned upside down for all sorts of reasons. Post COVID there's a fewer kids now, you know, just the normal grinding of education is tough right now.
Yeah, and everyone's sort of worried about where all this is.
This has headed. Don't have to see Lisa next please.
Okay, I'm about to do for a Costco run and I have to prepare the budget because usually drop about five hundred dollars.
Every time you go.
She's got full freezers.
I see, Yeah, she.
Turns your freezers on in the garage yeast. But here's why I thought.
That's why I thought this story was interesting. Okay, it's on the terminal sources telling Blue Werk that Target is looking into the sale of more products in larger quantity. So they want to start doing the bulk items on their website because I say, it's going to provide greater value like coffee and snacks and things like that, because they want to compete with Costco but also Walmart. But so you can get the bulk without the you're staring at home.
And regret that you bought paper plates for two thoy thirty When you're by ball, do you stare at it and go that was dumb? No.
The only time I do is produce when it goes bad and I get really mad.
Costco have produce, they do, and they have great produce.
So yes, that's the only time I get mad.
Old foods is if you can get avocados they have them star Yeah, if they have them, Yes, and aren't riper overdone?
Costco's killing it. I mean, I mean on the shareholder returned, it's amazing.
I'm telling you, I was onto something a long time ago.
Next, you got your tassel from the Gritty Palace. She's going to get the gold membership card from Costco.
Sixteen dollars at night. Next.
All right, so we go from Target to the elite world of private jets. Okay, so celebrities, business owners love them. But you've always heard about the environmental impact, remember the stories with the Super Bowl and all that. Okay, so Washington Post, yes, Davos too. They pointed to this report and highlights that globally, private jets admitted up to nineteen and a half million metric tons of greenhouse gases in
twenty twenty three. And here's what's interesting. That year private jets they polluted more than the total of all commercial flights that were departing from London's Heathrow Airport. So that is huge and the US is ranking high.
Yeah, as far as.
This here, that's an exercise more discretion in terms of your use of the US.
You don't have it.
I went back and forth with Bramo last night, and you know, we're looking at the Dessau but it's not the one Taylor Swift has.
It's a cheaper one. Yeah, and we're staying with Golf.
Street We've always which I think is smart.
Yeah, yeah, we do. And we didn't. We didn't price up.
I said to Micah said, I'm just not getting the G six and the and the answer is the engine pollution is a big deal.
It is.
It is that to the wedding defense, you can't.
But Sweetey took the Sikorski.
He had to get out there fast and Janeec couldn't get a seat. He had to take the taxi.
Lisa Mateo, the newspapers, thank you so much.
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