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Sing the best idea and on a Friday, I'll tell you the distribution For me, it's mostly through Apple. There's many other ways to get a podcast from Bloomberg podcast but just two points here. As we ramp up a new digital reality for everything I'm doing in economics, finance, investment, and international relations. The first thing is out on YouTube. Subscribe to Bloomberg Podcasts. That's really going to be the
platform forward one year, five years, ten years. The conduit, the folding of all the work that Bloomberg does every day it ends up in some form of audio file and podcast. And the other is that I'm very much focused on Apple podcasts. It's great, great distribution system, and we're just thrilled with what our team is doing there.
This is an incredibly nuanced Friday. I can't say enough about almost what I call micro tensions on the Bloomberg screen, the launch pad screen, between equities, bonds, currencies, commodities, and that micro tension on an inflation basis is this raging debate about a stable inflation, some saying even higher inflation, many many remodeling in a new disinflation to come Jim Bianco has seized the high ground here. He's out of Chicago and Bianco Research. Eighteen months ago he was a
lonely voice saying, don't be so certain about disinflation. We get an update from Jim Bianco.
If you go to what the economists call the base effect, the numbers from last year are very low, and we're going to stay there. And that's going to be problematic for a FED that is looking for confidence to cut rates. They're going to continue to say, see sticky inflation. I think the probability is above zero that we're going to have a rate increase, but I don't think it's quite at that fifty percent level that you would expect one. But we are probably closer to that than a cut
right now. The data is just not there for a cut. I mean, one payroll report that came in below expectations, it was still one hundred and seventy six thousand jobs, and that's nothing that you would look at and say, this economy needs more stimulus.
Who to read this weekend to dovetail off Jim Bianco without question. Lindsay Piegg's at Stifel, also out in the Midwest. His adamant about the rationalizing I should say of a rate increase. I can't say enough how lonely Bianco and Piegsa are versus the zeitgeist of a new disinflation off of oh, declining real estate prices and this, that and the other thing. Taylor Swift tickets in Paris. They're not declining and they're not part of the disinflationary trend. I
want to take some time here. I can't say enough about how you have a theory or a belief and there's a jump condition changed. There's a whole thing called economic epistemology that talks about this. George Soros has been very eloquent on it, out of Popper at LC in the early fifties and onward. And don't want to go into that right now, but you can have a jump
condition in thought. Decades ago, there was a company called stern Stewart in a one volume book on economic value, added that it didn't so much change the dialogue, but began a dialogue over the silliness of what business media does every day, which earnings, what a revenue is going to do? What's gross to marts? Oh my god, ebit dah I can't believe it. And basically what EVA said
economic value added was it's all hot air. You need to look at the net operating profits after Texas, figure out your own individual capital analysis and capital deployed and capital allocation of a company. And there's a number of different ratios here. And it's worth the subscription to a Bloomberg terminal to go say Apple AAPL equity WACC the way that average cost of capital screen WACC of the Bloomberg is literally worth Why you buy a Bloomberg. It's
just that good. And the answer is this is a whole science onto its own. And Craig Sterling was at the advent of this with EVA Dimensions working at Credit Suitees and now to Monday. This is one of the highlights of what we've been doing on single best idea, Craig Sterling here on if you don't allocate capital in a good and constructive way, you are toast.
Most companies are being run very capital efficient. You know, investors are not le letting them do things in the past that may have destroyed returns on capital and hurt future growth and ultimately their save price. Companies are being well run. Not all, but the ones that aren't. We see activists come in and I think you're seeing these companies well run in analog semis. You know, this is an industry that is generally well run. It's gotten more
concentrated in recent decade or so. So you've got the winners that have done a good job. And you know, you look at a company or an industry like chemicals or energy, which have not been great stewards of capital over time, but these companies are competing way more rationally, not spending just to spend and grow, and the investors are going to start rewarding.
This just a superb conversation, just what we love to do. We've had a phenomenal week at Bloomberg Surveillance. I can't I don't even know where to begin to describe on the conversations because one of the highlights was Jess Meanton where their definitive analysis of sweet greens. She is the chief Surveillance SALID correspondent. No idea you could pay eighteen dollars for eleven hundred calorie salad with a name I can't pronounce. But the kids are lineup, Eric and the rest,
they're all lined up out the door. Fifteen feet deep for a sweet green salad. That's my goal this week, and I'm gonna try to take a sweet green salad. We'll see if I get in the door and am able to make the order. Paul Sweeney says, you need to take a course to make an order from New York. We're on Apple car Play. We're on Android play as well. On YouTube, subscribe Bloomberg podcast search Bloomberg Podcasts. We're there with a two hour, fifty six minute replay. You'll see that out and on Apple.
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