Bloomberg Audio Studios, podcasts, radio news. The single best idea, the single best idea is that David Ger and I will not work this weekend. That's where we're trying to get to. The politics of America continues an important meeting with mister Yahoo and mister Trump in Florida on this Friday. Davy Girl with wonderful perspective on that Today the show was wonderfully eclectic. A major thank you. Under real dress. Carolyne Conan of our Paris news bureau got us started
on the Paris Olympics in the train. I don't know what I call it sabotage. I'm trying to not make news here, but I think that's appropriate where many of the train tracks across France are shut down. She mentioned the track out to Brittany out of Montpa perhaps is damaged, as well as the trip from London to Paris. But thank you to Carolyn Conan literally sitting, I believe, on a train when she gave us at report on the batphone.
A lot of other things going on as well, but the key one was the inflation data today, and so we spoke to Bloomberg's surveillance philosopher Ira Jersey.
I mean everything's transitory. Life is transitory if you wait long enough, right, Well, I love that philosophy.
Here he was worse than credit suitee continue.
So you know, obviously there's cyclicality, right, So we always look at trends versus cycles, and that's one of the important things. So, you know, we had this forty five year downtrend in interest rates, forty year down to which was subsequent to a forty year down trend in inflation.
And now we've broken too that to the upside. So so now we're looking not only for you know, what's the new trend in both inflation and therefore different markets, you know, fixing come markets really yields like you're noted, And then what is the cycle around that? And do we have inflationary cycles now that have higher highs for inflation and higher lows. The answer is probably for the next cycle or two we will have that type of environment.
Iiraon Jersey. There was some good reporting, and of course we saw in the bond market some stasis off of the set of economic data today, but nevertheless equities higher and fixed income yields came in. I saw a lot of different voices suggesting September as we were heading to But boy, we have to really keep in mind the essay by William Dudley, the former New York FED President.
We saw that on Bloomberg Opinion, a blistering essay stop screwing around and move July thirty one, that puts some tension into the FED decides we'll do that next week. John Fair, Lisa Bramwoitz, and myself as well on the tech juggernaut to come. In the background, there's Tesla and Google, but far more there's this stress us over cap X every once in a while, and we talked to people this this blather blather. I'm as guilty of it as anyone.
And then someone steps in with specificity where the show just stops on AI. On Capex for Global, Wall Street, Gene Munster, deep water asset.
Management companies are spending about fifty billion a year on CAPEX. So you figure over a three year period, one hundred and fifty billion. They're generating about one hundred billion a year in income. Of that capex, by the way, about half of it is related to AI. So said another way,
seventy five billion over three years. Their market caps are two plus trillion dollars, and as Zuckerberg said this weekend is Bloomberg Podcast, that there's just too much risk if they don't pursue this, because it is the biggest changes he talked about in the next ten to fifteen years. I think it's the biggest change in the next fifty.
But the point is is that I think that if one of these companies takes the approach of let's save ten billion dollars here, ten billion dollars there over a over a year period, I think it could be a
just a historic mistake. And so they get it. Google said it soundar sat on their call that they have to continue to embrace capex and ultimately, Dave that is that's the central question of what AI investors should focus in on, at least over the next year or two years, is what does that capex pace look like?
Gene Munster bottle that that's just incredibly important comments there as he breaks out the actual numbers within this Capex panic over AI. We will go next week too, an exceptionally important final week of July. We've got the FED meeting, We've got the earnings here that we will observe from Microsoft, from Amazon, from Apple and others. We're on YouTube, let's forget that. Subscribe to Bloomberg podcast please. That's the best way to help me drive this forward. You're subscribing to
Bloomberg podcasts and again on YouTube. A great live chat, informative live chat as we build out that audience. On Apple CarPlay worldwide and in France. If you can't get on the train and see the Olympics, at least listen to us on Apple CarPlay stuck in what I'm sure is a lot of traffic outside Paris. And Android Auto as well on Apple Podcasts. This is single best idea