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Kathy Jones joins is to give a first look it yield. I look at total return on bond funds since the bond market broke three years ago whatever now two and a half years ago, and it ain't working. What's the value proposition in bonds versus buy in two year of Paul Sweeney two year yield forever?
Yeah, well, we didn't have positive returns last.
Year, and by look, you gotta do better than that.
Yeah, I know, but we did.
The agg was up in most categories except for very long long term bonds or international bonds had positive returns. And you know, the reason you buy bonds are for income, and right now they have income. You buy them for a capital preservation, just because.
Borrowing you want to get your money back.
You can get your money back, and for that sort of certainty, right and for diversification. So at some point in the sometime in the future, the stock market might go down, and generally bonds do pretty well in that environment, Kathy.
For a long time we had an inverted yield curve in some folks like Cam Harvey at Duke University would tell you that means the recessions coming. We didn't get it. Now we've got the yeld curve steeping. I got the four I got the ten year at four to sixty, the two year four and a quarter. What is that steepening yield curve telling us?
Yeah, this was one for the record books. We didn't get the recession after the inverted yield curve. I think it's telling us two things. It's telling us, yes, the market still looks for the Fed to cut a couple of times at the short end, but the long end is reflecting all of the risks that we have for inflation and for policy that may prove to be inflationary down the road. So we're going back to a more normal, steeper yield curve, and I think that continues.
So what am I doing in terms of credit? Here? Do I take credit risk? Here? Do I just be comfortable in my treasury market?
Yeah? I think you can take some credit risk. We are cautious on overdoing it on credit going too far down the spectrum, because we are starting to see defaults rise in the high yield market, in the lower credit quality part of the market. But investment grade companies, you know, they have cash flow that have strong earnings. It's really hard to fight that. So we'd continue at the investment rate. And you know, in the intermediate duration category.
The real yield, what does that indicate to you? The nominally yield, folks, I think it's Paul, it's the beginning of the year. Like every jargon we use. We got to redefine it, right, even if it's slows a show down to Alisa Monteo crawl. We don't want to do that.
But the real yield is the inflation adjusted yield. There's different ways to measure, but the answer is it's.
Up up and a way. Does that impinge on Lizzie and Saunders economy?
Well, I think at some stage of the game, other asset classes may look at the positive real yield of say two and a half percent, maybe moving up to three percent?
Really are you well, we've gotta make some news here finely, can I put that on on YouTube?
Kathy Jones models three percent ten year real yield.
I don't think that it's out of the question at all. If you get a five percent ten year which is not out, which is within the range of potential outcomes that we have, and inflation continues to drift lower, you're going to get very close to that three percent real yield. And I would think at some point other asset classes would pay attention to that and say it's competition. But in terms of the economy, I notice Kathy both chantick I always have trouble with their name.
But Centory.
We got to take a pall here right now, Lisa Matteo, do you have trouble with Kathys Johnson's name?
Best Paul, do you have trouble with you? And say, hey, friend, welcome.
To a terrific e.
She's a killer.
I'm sitting there butchering. Mark Crumpton keeps a list of all the names that God I can pronounce Jones. But Mark Crumpton keeps a list of all the things I butchered.
And at the top of the list is Kathley has studyed Good.
Morning Kathy, a nationwide tell us about Kathy's announce well.
She talked about productivity. So we can have high real yield if we have strong productivity, And that's the question mark. Does that continue or not?
What does our Federal Reserve do over the next couple of meetings here? Because now, I mean we kind of started thinking six nine months ago it could be multiple breat cuts. Now the market's down to maybe one or two. What do you think? Yeah, I think.
They're very cautious from here.
They have to be.
We'll get the minutes later this week of the meeting, which should be very interesting, but they have to be very cautious because there's so much policy uncertainty on the horizon and the economy continues to do better than they thought.
Thank you so much for coming in today. Thanks liz Ane would have done this. I mean she's cold. She's like, no.
Way, she's down in Florida.
She said, exactly, Yeah what liz An smart? The rest of us moll that's O there is, Kathy Jones. Thank you so much for getting to start.
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.
Glor Calvisina of RBC Capital Markets, Laurie, up twenty percent, up twenty percent. How do you model up up again?
Well, thanks for having me, Tom, and happy new year.
Look.
I think you can't really do it from a valuation perspective. My valuation model is the most conservative one in our targeting process. But I do think on the sentiment side, we have an important development in December, which was that everybody got worried, and so we saw aaii net bulls fall from a range you know that had been one standard deviation above the long term average back in October. It stayed elevated as we got into early December, and
it's pulled back now to the long term average. If you look at the four week average, and if you look at the weekly data point that came out last week, I think the bulls and the bears were basically at parody with one another, and that actually improves the setup for stocks going forward. So I think we can get there. I think you can. You can also have earnings help drive the market higher. I just don't think you get
it from a valuation expansion perspective. I think we've really done the valuation expansion that we're going to do in this cycle.
Hey, Lorie, how about earnings? How important are they going to be?
Here?
It seems like the Fed's not going to be doing too much heavy lifting forming in twenty twenty five. It feels like, and I can't imagine getting multiple expansion from here. So it feels like if any performance we're going to get in twenty five, it is going to be earnings driven. Is that a fair assessment?
I think that's I think you hit the nail on the head, Paul. And look, I do think earnings have some challenges as we go into this next recording season. Namely, margin expectations have been coming down if you look at the bottom up sell side consensus estimates, that's been under their way since the middle of last year, actually, but it's continued as we look at these past few weeks. And if you think about, you know, sort of the dollar.
A stronger dollar typically causes downward revisions, and I know the dollar has been all over the place, you know, and showing some weakness at least last I checked this morning. But the four Q strengthening that we had, that cake is already baked. So we've got to sort of see what companies say about that. And look, Paul, I've been
doing this a long time. It always amazes me that when we go through these periods of dollar strength, I go in and you know, read earnings call transcripts, and companies, especially in healthcare and tech, like to blame weakness on the dollar. You know that everybody saw in real time, but nobody marks their models until we actually, you know,
get to the end of the quarter. But I think you've got some little issues like that, and I do frankly expect companies to keep the bar somewhat low, just that we do still have some uncertainty in terms of things like taxes and tariffs. So I think earnings are going to be good and solid, but maybe not a ton of excitement here in the very short term.
I want to talk about religion, Laurie, and that what I saw in all the wrap ups of last year in this great bul market. Take it back to Ben Laidler and Christmas Eveo. I believe twenty eighteen is the worship of free cash flow. They have nots the people that aren't trading it in Vidia multiples. Do they have a new religion to emphasize free cash flow growth or do we awake that. Why aren't more companies saying we got to boost free cash flow?
It's an interesting question, ton. I'll tell you it's not a big part of my process, and that may be because I'm sort of overly influenced by my small cap days and I am a data nerd at heart. We've talked about that on this show before. But I will tell you that when I look at different databases and try to bring in free cash flow data, especially free cash flow estimates, it's really kind of garbage like when you try to aggregate it off to the market level.
So I'm, not, to be honest, a big you know, sort of part of that philosophy.
So, Laurie, as we think about twenty twenty five, it seems like, again two years in a row, we've had twenty percent plus returns in the SP five hundred, in large part tech driven. Quite frankly, it seems like this has been a tech driven market for fifteen years. Is tech going to be a leader in twenty twenty five? Does it need to be a leader in twenty twenty five.
It's a great question, Paul. And if you actually go back and I think it was after Trump's first victory. We went back and looked at sector performance in the twelve month period after that first Trump victory that November election,
and we found both financials and tech outperformed. So it doesn't shed a ton of light on the growth versus JALU trade at the sector level, but we did see growth stocks generally outperform in that period, and we've seen growth stocks, you know, big megacap tech type names, continue to hang on to their leadership here in the aftermath of this election as well. And look, I think a lot of people want this market to broaden out. You can count myself in that camp.
Yeah.
That being said, I think we have to understand and why we have had so many head fakes so far, and it is simply because the value part of the market, the rest of the S and P whatever you want to call it, has just not put up superior earnings growth and the mag seven you know that it has been fighting back, and we see it in terms of
near term consensus expectations. They're still dominant even though a ramp down is anticipated, and long term earning growth expectations are still sitting at big highs relative to the rest of the market, and that is sustaining the premium valuation multiples until you break that. And I think a hotter economy than what we've been expecting, like more like a three percent economy than a two percent economy, I think
can help that value part of the market. See earnings growth, you don't move up, but we're just not seeing it yet. And so I think, to be honest, if I look back at my December meetings, this whole go with value broadening, it just seems so consensus right now, especially in the fact that the earnings growth dynamics aren't shifting.
Lloyd Kelvicina, I look at where we are, and what I'd suggest is sort of the zeitgeist now as everybody's pulling away the last five six days, I think like three hundred and sixty five days ago, we had the same thing going on. How do you interpret the pulling away we're seeing right now? People selling Meg seven, people lightening up.
Yeah. Look, I think there is a natural inclination to take some profits when you've had this frothy sentiment in place, and I don't think people realize how much the sentiment started to unravel. But there's been a big concern about valuations, and we've got a lot of uncertainty on the policy front, so I do think it makes sense to sort of retrace here a little bit, take some profits and see where we need to redeploy in a bit.
Laurie, thank you so much, Lori Kelvisina, RBC Capital Mark.
It's just a huge value.
Ed.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at seven am Eastern on Apple Cocklay and Android Auto with the Bloomberg Business up. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa, play Bloomberg.
Procest Nation on your commute this morning, the one everyone on transportation is watching. No, Paul, it's not the build out in ink or what they're doing with JFK terminal wone.
Jenna Lieber joins us.
Today running the MTA off of this congestion tax in New York, and we're thrilled the Bloomberg Surveillance will bring them to you for the entire risk of this hour. An incredibly busy day, important Monday for you. I've got one question which Krity grouped in London actually brought up because I know Paul's fired up here with a bunch of questions as well. Part of the bargain in Stockholm is they have a world class taxi service. Part of the bargain in London is they have a world class
taxi service. I'm in taxis constantly here that are third world. How does this congestion tax get us is crity goop dimension to a better taxi experience?
I think, Tom, thanks thanks for having me. I think that the taxis in New York are dominated, as we all know, by Uber and Lyft, and they actually are looking forward to having.
You interrupt here. You're telling the poor people of New York City to take an Uber.
Yeah, you know what, the right now that the cost difference between Uber and taxis is not all that great. I'm not in the taxi business, so I'm trying to answer your question. But the point is with more with less congestion on the roads, you're going to have the
taxi industry, I think is going to do better. I mean, people will be able to move more quickly, pick up more rides, and for what is actually seventy five cents per ride when the average ride of a taxi taxi ride now in New York is like twenty five bucks, so seventy five cents a ride, and they're going to be able to move much more quickly, take more rides. I think it's going to be good for the industry.
Part of the outcome that you guys are hoping for, that we're all hoping for as a city is reduced traffic, reduced congestion within the city. When don't we know if that's actually happening.
It's a good question.
It's going to take a while to obviously, to take effect. New York is adjust and they are resilient, but it's gonna take a little while. So we're gonna be watching it very closely, day by day, week by week. I don't expect to see some dramatic change on the first or the second day.
Over time.
We're expecting a ten to twenty percent reduction in traffic. That's what we're shooting for. But Paul, the big issue here is New York is leading New York Is and I think I know you're an international outfit. New York is becoming a twenty first century city. We just did you know two train terminals in the last couple of years, La Guardi Airport a total rebuild. It's number one in the country. JFK is getting rebuilt. I know your Newark
Airport is getting investment. This is about being a twenty first century city where we don't spend all our time stuck in traffic. The business community that has always supported congestion pricing under Mike Bloomberg's lead in part because it, you know, congestion and time spending traffic is a tax on our economy.
A lot of folks view this congestion price as simply a tax on consumers. Your budget is nineteen billion dollars. I believe that the MTA is for twenty twenty four. You need more money. That's what a lot of folks are saying.
Listen, this is as you said.
This is ninety percent of the people who come to the central business this or take transit. We're carrying six to seven million people a day on mass transit. So yeah, we have we have to pay a lot of people, and eighty percent of our cost is wages and pensions and benefits. No question, we'd have to pay a lot of people to deliver that service. But the bottom line is congestion pricing is about the benefits. It's about not just money for the MTA, but about lower traffic, cleaner air,
safer streets, and a more functioning economy. That's the goal. That's why London did it, and that's why we're following.
I was in.
Paris last week and all I could say is what a difference in congestion. It was just beyond pleasant. When are we going to see results? Are we talking tuesday and we talk in twenty twenty seven?
Listen, I want to sit here and tell you I have a crystal ball. The bottom line is adjustments are going to be made. It's gonna definitely take place over time. Let's watch it together. There's gonna be total transparency on the MTA side. We're gonna have a you know, a dashboard app for everybody to look at how many cars came in as compared to before the system went in, and how many of them are chargeable, and we're gonna be monitoring it close.
Number one question I get is what happens, folks, For those of you across the nation and worldwide. The outer rege of Manhattan North South is the FDR in the West Side Highway. What happens to those two important thoroughfares where I believe there's no congestion text.
Yeah, well, the idea is that these are so called excluded roadways that are on the edge of Manhattan, that people should be able to use them to get around the congestion zone. Listen, we have to We always talk about drivers like the dominant reality. I know you guys take trans At ninety percent of people who come to the Central Business State history take transit. There are only one hundred and thirty thousand people coming to the CBD who drive their personal cars as opposed to a million
and a half jobs. So I don't think that we're gonna have some catastrophic traffic impact because a portion of those people do elect to take transit, or that people are avoiding the charge. I think we're gonna see it all get baked in over time, but we're gonna watch it closely, and we're gonna talk to you about it. We have a new president coming in in a couple of weeks. I'll hear your tunnel exactly.
Now, just what do you what do you think president in president like Trump will do if anything about this plan.
I don't know.
You know, we got sued by in every every court front. You know east of the Mississippi's.
Gonna say, is there anyone who hasn't sued you? Yeah? But Lisa Tay, are.
You filing this party?
Yeah?
But you know what, we went every lawsuit because we did a four thousand page study. The FEDS approved it. You know, it took five years to do the study. It takes about five minutes to figure out New York as a congestion problem if you stand in midtown. But the what President Trump is going to do, I'm not certain. There's a lot of Republican politicians who are against mass transit and who.
Rail about this.
President Trump is also in New Yorker ruins office buildings, and ninety percent of the people who work in his office buildings come on mass transit, So I'm optimistic that he will get it.
We are on a General Libo's Lever's CEO of the MTA with us today for this extended block. Here we welcome all of you on Bloomberg Surveillance nationwide and you commute and on YouTube subscribe to Bloomberg Podcast. To say the least, I have talked to Mayor Adams not once, but twice about a New Orleans experiment. I believe over
in Europe a free bus service for the poor. The congestion text is about fancy people like Paul Sweeney in his ginormous car or me being driven by the Bentley Down Fifth Avenue.
Forget about it. What do we do to help.
Really needy people who need to commute from to say, Rockaway Beach up to wherever?
Okay, well, let's just be real, because ninety five plus percent of those people you're talking about, low income people who live in the boroughs, take transit. They don't drive because parking in midtown is Should we offer them free bus search you know what we're offering. What we're offering is we have them for the first time. The MTA, under Mayor Adams leadership, has been pushing a fairfares program that cuts the price of transit in half for low
income people. And you know what, Tom, Transit is one of the very few things that makes New York affordable. It's fifteen percent the cost of owning a car. It's already a good deal at full price. At half price, it's out of sight. And so I'm confident we're dealing with the concerns of that community as well as the broader goal.
What is a delta in going from Daniel is all over me here she's she and Michelle CASKI have done great work for Bloomberg and is Daniel Moran? What has been the delta from fifteen dollars down to nine dollars?
How does that change the Jena Lieber World?
Good question. Listen, Governor Hope, only good one of the day, stay with us. Yeah.
So so Governor Hokeel, after we were moving towards implementing in June, decided that she wanted to take away the sticker shock and so she, after a pause, knocked it down, knocked the price down by forty percent, so instead of fifteen bucks for.
Does she called you? Where did you learn about it? She called?
She called, she called me.
It was shortly before she announced it, and it certainly was a shock to the system for some of the folks who have been working on this, but in the end it has worked. What has done is it's message to the public that we are looking at an easy implementation, that she's worrying about affordability, but we're getting the benefits. Tom that you said, what's how does it affect the MTA? How does it affect me?
We will.
It will take us a little longer to raise the statutorily required fifteen billion dollars, but we have enough work going on that we can continue to make progress on rebuilding the subway system. In the meantime, it's been a net net positive.
We're going to be One of the intentions for congestion pricing is to drive more of transit folks to the subways. How about safety the subways?
Where are we there?
Because there's a you know, a concern is that you're well well aware that post pandemic maybe not listen.
You know, the overall stats are positive.
We had last year we were actually twelve and a half percent less crime than twenty nineteen, the last year before COVID. But there's no question that some of these high profile incidents, you know, terrible attacks, have gotten in people's heads and made the whole system feel less safe, and there's a little bit of disorder that's crept into the public space since COVID. There's no question about it.
I say, the criminal justice system has to do its job and make sure these people who do that kind of stuff, most of them who have long rap sheets are put away. There are very very few of these folks, but they have an impact from people's sense of safety, and we need to deal with them in a way that protects the riders.
First time I went down the stairs on a Tokyo subway, Yeah, there were the guard rails or the walls or whatever.
We put a man on the moon. This is New York City.
You mentioned the shining light of La Guardia nineteen billion on JFK as well.
Can't we put up.
Guard wheels guardrails quickly in our subways?
You're absolutely right. The quickly part is the one challenge. I would say, we got well.
New York City quick like, We've put a million.
We put a billion dollars in our new capital program since fair evasion and this whole phenomenon has definitely accelerated post COVID. We put a billion dollars in our new capital program for that. So we are going to start to replace all these turnstiles which work when I was a kid, but clearly aren't effective now for in the era that we're living in.
We got to replace him. You're absolutely right, But are we going to put in walls to protect people at the edge of the subway?
Lisa Monteo and I are sitting at home with our offspring, go and take the uber.
That's the reality. JOHNA.
Okay, so listen, there's we have started to put up you know, barriers chop chop, which is really literally these these little little half half height walls along the platforms, and we're going to accelerate doing that. One complexity is those super high tech barriers that you get in you know, European train stations and the newer stuff literally are too heavy for the platforms that our one hundred year old
system has, so we can't do that. But we're going to start to accelerate these barriers so that anybody can position themselves so they feel safe on a subway platform. We don't want people to feel otherwise.
So I know, when conceiving of this plan here, there are a lot of exceptions for different people who would be exempt from this congestion pricing. For example, the Hampton Jitney is exempt, yet personal firefighters personal vehicles to get them into the firehouses are not. That seems kind of odd, but I noticed trade offs everywhere.
Yeah, I mean the point is, well, there was across the word. This was done by a panel that was studied. There are one hundred and thirty separate requests for exemptions, and what they said is what we're going to exempt is low We're going to exempt disabled people. We're going to give a huge discount to low income people, and we're going to make sure that buses which are a form of mass transit, whether they're operated by the MTR otherwise,
are exempt. That's where you get something like the Hampton Gitney. Now, in fairness, Hamptonjitney has fifty people on it, and if those people drove, it would take up a lot of rooms. So it makes sense. We don't talk about personal vehicles. We're not going to choose who is, you know, special. The real goal here is to have people make rational choices. If they want to get their employer to pay them to drive in, that's fine, but that's not for the government to decide.
The broad decision was what it was.
But let's you know, today is really a historic day, and we ought to be focused on the fact that New York is back to leading, that we're doing what Meyer Blumberg did in the old days, which is New York's a problem solved. We're in the problem solving business. We're dealing with our problems and like government seems paralyzed a lot of the United States. We are dealing with the realities and what it takes to be a twenty first century city.
Daniel Moran is writing this up and she's like, Okay, we're leading the way.
What's the next city to do this?
You know, nation Why that's a good question. You know they all doors.
Locked over there, Danielle says, you can't get out unless you answer the quest.
Well, they all call me and they say and they and they ask for information because they're all taking a look at Boston. It could be because the key is we are so lucky, because cities all over the United States have traffic problems like crazy, and it's crushing their economy and their development pattern and their appeal to employers.
But only New York.
Has this out of sight mass transit system. Maybe Boston, maybe Washington, maybe Chicago, because they have the alternative.
I'm cutting you some slack here, and folks, let me tell you, I'm not even part of this debate.
I was below fifty seventh Street once last year. Yeah, I have no life. What I went to Brooklyn a couple of years ago.
It's beautiful.
Come on over, I thought it was Brooklyn, Massachusetts, and they said, no, it's Brooklyn, New York.
General.
Let me let me cut to the chase here in the heart of the matter.
Somebody once explained to me that New York is not London. We're not la You've got X number of bridges, x number of tunnels. It's it's a challenge here like no other challenge. Where's the bottleneck.
Going to be? With the congestion text?
You know, I think that the great thing is if you reduce traffic in general, there's less chance of bottlenecks across the board. That's the benefit that even the people who have to drive or choose to drive, are going to get a better experience so their time is not wasted stuck in traffic.
That's the goal.
I don't know exactly where the bottle neck's going to be, but the goal is to have fewer of them.
So we're Wall Street, we're global. Wall Street.
Talk to us about this bond that's going to be issued a what is it? And when will you guys issue this some bonds to raise capital to then invest back into this good question.
So ourf CFO at the MTA, Kevin Willans ran Munifinance at Goldman for many years.
Kevin Is.
When the governor dropped the toll by forty percent, he took a hard look when that started to unfold at whether we could still raise the money that the statute that the law requires fifteen billion dollars to be raised from the revenues. And the answer is yes, we can do it. It will take slightly different structure, it will take a different length of time, but we're going to be able to do it, probably in multiple bond offerings rather than a single one. Originally they planned a single
bond offering fifteen billion. Now it's going to probably take a couple of years and a couple different offerings.
You've been more than jens of your time. I want to talk about the reality, and I'm speaking for the headquarters here the investment mister Bloomberg has made. I should mention folks Mike Bloomberg the former mayor of New York and he is, of course the owner of Bloomberg Radio, Bloomberg Television, and I think does he sign your paycheck? I think he says as well, Yeah, it's just simple. We go up Third Avenue and it's ruined. I got a bike lane, I got bus lanes. I got some
kind of parking in the middle. Basically, we've taken six lane streets five lane streets down to two and you're living it as well. I got an Amazon truck on the right and a FedEx truck on the left. Now everybody's going up Park Avenue because they can't get up Third Avenue.
That's just my little soap opera.
How do we get rid of the parking issue? Peter Coyt The New York Times has been brilliant on this. How do we change parking so Third Avenue is in a driveway?
Well, I mean, listen, we got these are issues that the City of New York is going to have to wrestle with. You talked about how good your experience was in Paris, and Paris has done a lot to make it easier for bikes and pedestrians and to take away a little room for cars. That is part of the strategy that's been effectively followed. But I'll say this when we thankfully the city is getting rid of dining sheds, which took up a Yeah, getting rid of dining sheds.
You know, we love our restaurants. They're rocking and soccing after COVID, But we don't need to give out free real estate in the middle of the street uh anymore because people can't go indoors. So so that is one factor. But I'm for more more uh by. You know, the bike lanes and certainly the bus lanes. If we can put fifty people on a bus who would otherwise be driving fifty individual cars, it's a net positive for the city, even for the drivers. So we got to keep focused
on on a street scape that works. But you know, it's still it's still it's still a work in progress. Tom, We're still learning and coming out of COVID with the dining sheds, I think we're we got to make some progress.
Sweeting demands. We got breaking news here. Can you solve the New York Giants and the Jets?
Can you like a Giant?
I'm a Giants fan and I stopped paying attention about two months ago.
Well, there's some breaking news here. They decided this morning they're going to keep the GM, keep the coach, Joe Shane's GM, Brian Dabolos coach. They're going to be retained.
Genna, thank you so much. Jenna leaves the MT.
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 you day.
Look at the front page is Lisa mateo moment, Lisa, what do you have?
Okay?
This is a new Wall Street Journal analysis of test scores.
This is really interesting.
It shows girls have lost ground in reading, math, and science, and people are really concerned about it. This is since twenty nineteen, test scores have dropped sharply. They're calling that the pandemic learning loss. Boys' scores have also dropped, but the girls decline is worse. So the reason why they're saying it is because arise in behavior patterns during the pandemic. It forced teachers to pay more attention to the boys
because they tended to act out more in class. And then during and after the pandemic, a lot of the girls took on those caregiving household responsibilities, so it took their focus away from school.
So I just thought it was a just I mean, it's gonna be years, yeah, years out. That was oh sure that we learned what the real impact is going to be.
I got this wrong, and I learned about this from Bloomberg employees, the anecdotal evidence of our twenty one thousand employees. I learned the pandemic and our children's education just changed that.
What else do you I.
Totally see it.
The gambling industry is using a lot of artificial intelligence to get more money from Americans. So some of the ways they're doing it startups their profiling gamblers, so they're feeding them content games personalized to what they like, convincing them to stay longer, make bigger bets. They're using these large language models so generate a lot of things autoated summaries.
And then even you get to the physical casinos using AI, because they're using machine learning to optimize where they place the slot machines, because even that kind of matters.
It does I mean, you're walking in and out of the casino floor slot machines for every ingress and egress. I learned that from doing the casino investing.
Do you think AI will do to this surgeon NFL football, which is a surgeon betting? Yeah, I mean they got to be used in it to learn every single.
Thing you need to do to win money on the patriots because you knew they were going to beat the bills.
Yep.
And one tangible practical implementation of AI is advertising because they can figure out better target who you are and what you want and what adds will work for you. That's happening today from Google and Facebook.
Lisa Manitaeo, thank you so much. Good to have that for us here the newspapers with Lisa Wantay, and we'll do much more of this into the week and into today as.
This is the Bloomberg Surveillance podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live each weekday, seven to ten am Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal.