This is Bloomberg Wall Street Week.
I mean may not have an overall recession. We're having a rolling recession. Econy of roll looks pretty strongly. It is when it comes to jobs.
The financial stories that shape our world.
Three major regional bank failures send shockwaves through the banking system. We're all trying to figure out what to make of generative AI.
Through the eyes of the most influential voices.
Welcome down, Doctor Paul Krugman, Ryan moynihan, a Bank of America. Debro Lair of the Paulson Institute, well then Hubbard of the Columbia Business School.
Bloomberg Wall Street Week with David Weston from Bloomberg Radio.
Realignment for the Chinese economy, for banks, for the Walt Disney Company, and for college football. This is Bloomberg Wall Street Week. I'm David Weston this week, Rick Reader of Blackrock. I'm investing for no landing at all. Even could you.
Have a technical recession, I just think like you'd have to wake people up and tell them because you're operating at such a high level in the economy.
Deborah Lair from the Paulson Institute on the ups and downs of US relations with China.
They're is a reconsideration in Western economies and looking at what their relationship is economically with China.
And George Pine a ruined capital on making money out of college football.
It's run by a very fragmented industry and so it's a bit unwielding.
For most of global Wall Street, it was a quiet week, with trading volumes down as many enjoyed some time away from their Bloomberg terminals getting ready for what comes next. But over in Beijing, things weren't quite so quiet when new numbers came in pointing toward deflation and confirming how hard it may be to get growth back to the levels prison G wants. What China you seeking deflation? For sure? The question is how long?
And I think he's up to the policy miki.
While they react with accordingly to the it's called on the monitory eting. While the United States didn't make things any easier by imposing those long awaited outbound investment restrictions, we.
Will compete with them, and we should be competing with them outside this executive order, and we will cooperate with them on things like climates.
Banks had a bit of a rocky week as well as you as mid size banks got hit with the Moody's downgrade.
Now the big super regional banks are going to be.
A little more tightly regulated, and that actually is a tailwind for bond investors.
And Italian banks faced a windfall profits tax that tanked their stocks before the government backed off a bit. The Walt Disney Company announced its earnings in the midst of a mid course correction, with an awful lot on the line for the world's largest entertainment company.
While Linear remains highly profitable for Disney today, the trends being fueled by cord cutting are unmistakable, and as I've stated before, we're thinking of expansively in considering a variety of strategic options.
And college football continued its conference shake up, with USC, UCLA, Oregon, and Washington all going to the Big ten, leaving the Pac twelve out in the coals. US CPI numbers came in just as predicted, with headline prices up two tenths percent or three point two percent year over year, while core came down just a bit to four point seven percent.
As the bond traders would say, this one was on the screws came in right as forecast.
Both those encouraging CPI numbers on Thursday ran right into higher than expected PPI numbers on Friday, even as the University of Michigan told us that inflation expectations overall continue
to come down. The markets reacted all this by going up and going down over the course of the week, ending up more down than up, with the S and P five hundred down three tens p percent for the week ending at forty four to sixty four, while the Nasdaq had another tough week, down one point nine percent, making it the longest string of down weeks so far this year. While the yield on the tenure ended up twelve, it went up twelve basis points at four point one
point six. Here to sort it all out for us are Lysanne Saunders, Charles Schwab, chief investment strategists, and Kristin Burdly. She is a city head of North American investors. So Chris, let's start with you here. What did you make out of what we saw this week? There was a lot of back and forth about where inflation's going and therefore what the Fed's going to do.
Yeah, so I think what we saw this week kind of a continuation of last week. Is understanding and trying to break down what are the expectations really for rates in terms of our rates going to be higher for longer?
So what about from your point of view, Lise Anne, higher for longer? How much higher and how much longer?
So I think you know that's where the disconnect to some degree still exists in terms of market expectations. Yes, the market has pushed out rate cuts into twenty twenty four, but as of now you're looking at five cuts being priced in, and under a scenario even if you continue with disinflation where you don't see the kind of cracks in the labor market. That not that the FED is
gunning for, but it's certainly in their forecasts. If the labor market stays tight and you don't see a hit to growth, it's hard to imagine what the scenario would be under which the FED would see a green light
for cutting rates versus just staying on hold. And you had Williams Out, New York Fed President Williams Out talking about the relationship between inflation if it continues to come down and the fact that growth stays fairly strong and real rates start to rise, that could be a situation where the Fed says, Okay, we're now getting more restricted than we would like to be.
What do you think about the banks right now.
Well, it's been a unique rally since the October lows. If you use the simple definition of plus twenty percent, you're in a bull market without really any participation on the part of the the banks, which is unusual, and I think for sustainability and a move higher, you're going to need some participation. Obviously, there's also been that bifurcation between the larger banks that came through the banking used Jamie Diamond's word incident in March in much better shape
than the smaller regional banks. And you have the kind of doubler triple whammy in the case of the smaller and regional banks with the recent downgrade, the fact that you've had the deposit flight, and just concerns about commercial real estate, which the exposure within the regional and smaller banks is much higher to commercial real estate and the
woes in the office side than the large banks. So we're not out of the woods yet, but I think the waves from the March problems have clearly died down.
Chris, what from your point of view, we did have that Moody's downgrade on some smaller and regional banks here, and they do have as Lininju said, they've got ansual you have to pay more deposits that I used to pay before. And there is the commercial real estate issue looking out there that we're told is more issue for regional banks. How big a problem is it?
Yeah, So I think there's a couple of things to look at when it comes to the regional banks that are just and it's a question around the underlying strategy, because I don't think you can look at all of the banks in the same way, but you certainly can delineate between the large JASIB banks versus the regional banks. And it's a question around so one, what is really
pressure on profitability? So we were talking about capital requirements in Brian Moyahn's comments, but then looking to even just flows away from deposits into T bills with the very attractive yield and money market funds, that puts pressure in terms of profitability. And then if we break down the commercial real estate market, so banks overall, so looking across the entire sector, are about fifty four percent of that market, and then you have about seventy percent within that are
the smaller regional banks. And so when we look into if we're in a higher inter straight environment for longer, if we go into twenty twenty four, this is something that could put pressure, especially on those banks that have high levels of exposure to that sector. And one last comment, it's not just all commercial real estate. It really is a function of we have to delineate both regionally as well as within that space where you're looking to areas.
Really it's office space more than anything else.
Listen, I wonder from your point of view, there is the issue for the group of banks and whether you invest in their stocks or not. But there's also the larger question about the growth for the economy. I mean, can we grow the economy the way we need to to really support the stock market, for example, if the banks don't feel like and lend as much.
Well.
That goes back to sort of the classics of what happens when you go through an economic cycle. When you have tighter monetary policy via a FED hiking cycle, and of course this has been the most aggressive one. On the upside in about forty years, you get a significantly inverted yield curve like we have gotten it doesn't immediately
start to crimp lending. But even before or Silicon Valley Bank failing in March, the FEDS slews, you know, Senior Loan Officer opinion survey showed that credit conditions have tightened into recession territory. So, given the old line of credit is the lifeblood of an economy, as it starts to feed through with long and variable legs, it ultimately does
start to crimp economic growth via that investment cycle. We haven't seen it in earnest yet, but to suggest that this time is different and we're not going to is probably to complace in an assumption.
There's also, I think, Chris, a question of supply demand. Is it a matter if there's not the credit to extend or is there the demand for the credit other businesses asking to borrow as much as they were before.
Yeah, So I think that that is a question. And also it's both demand side. So when you look at just the overall like particularly within commercial real estate, and you look at volumes in terms of origination, that's fallen down substantially. I mean you're looking at year over year numbers close to sixty percent. But I think the more interesting question that we're getting a lot from our investors. Is actually, when you look at these sectors that have lagged,
are they a buy at these levels? For financials, I would say go in the direction of preferreds, which is really a play on the balance sheet as opposed to the equity which could be challenged from some of these profitability considerations.
So interesting. Thank you so much, Chris. That's Christian Ridderly of City and liz Anne Saunders of Charles Schwab. Always great to have them with us.
Coming up.
As China struggles to get going again, the US added more restrictions on investment in the Middle Kingdom. We've talked with Debora Lair of the Pulse and Institutes on prospects for the second largest economy in the world.
The world has really been very focused, I think, on how to deal with a strong China, and now we haven't really thought through some of the implications of the weak China.
That's next on Wall Street Week on Bloomberg.
This is Bloomberg Wall Street Week with David Weston from Bloomberg Radio.
China, its economy has grown faster than any in the history of the world and is either at number one or number two to the United States, depending on how you measure it. According to Graham Allison of.
Harvard, China is not just a rising power. China has risen. China is now seriously rivaling the US in virtually every domain.
But despite all the progress made, there are questions about whether China can continue its economic miracle, at least at the same pace. Economic numbers have been coming in weaker than expected.
We're not going to see China go back to where it was.
It's a very big component of the global economy, raising some doubts from Michelle Lamb of Society General about whether China can grow at the five percent pace it's set for itself this year.
Destansirisk and I think that primarily comes from the property.
Sector, and hopes of government stimulus to keep things going are not as bright as they might have been because of all that debt.
Talking about China's debt situation, I think is a long standing structural issue, and it's no surprise that China is facing a very big debt problem, and it's precisely one of the reasons we don't see very aggressive stimulus coming from China.
On top of all the internal issues, China also confronts a United States imposing new restrictions on trade and investment, whether it's export controls on shipments of technology to China or those limits on outbound investment into China. President Biden announced this week the.
Goal of this executive order is to make sure that we're limiting the ability of financial.
Flows and then know how it often.
Goes alongside those financial flows, to give countries of concerning the ability to get around the things that we're trying to prevent them from getting access to, like the most advanced of my.
Productors, leaving investors to grapple with what to do and not do with an economy simply too big to ignore. You can't rule out China. Since I started to go to China nineteen eighty four, per gap at income increased by twenty eight times. It's a power, and it's a smart power. And to take us through where we are with China right now, we turn to our non resident expert here at Wall Street Week on China. She's Deborah Lair. She is Vice chair of the Paulson Institute as well
as being CEO of Edelman Global Advisory. Deborah, great to have you back on it always is we are hearing a lot coming out of China right now. We had numbers this week which were not very encouraging. Perhaps some deflation going on. Certainly their trade is down. What is your sense of what's happening? What are the important things we should be looking at in China right now?
Well, so nice to see you again, David, and definitely she Jmping has a lot on his plate. The world has really been very focused, i think, on how to deal with a strong China, and now we haven't really thought through some of the implications of a week China. When we look at what is happening in the real
estate market, there are still major challenges ahead. And this is critically important because it's one of the main sources of investment for most Chinese and so if the market is not doing well there, it has a significant impact on growth and investment opportunities. To local debt, this is something that policy makers have been tracking for a long time,
and COVID just made it worse. A lot of this debt, and this is what's really concerning, is off the books, and so it's very hard to even track and be aware of. And it relates to how the Center is dealing with and forcing a lot of these local governments to take on unfunded mandates. And their main source of revenue previously was from the real estate market, and so if they haven't had access to revenues coming from the sales of.
Real estate, they have to look for other sources.
It's a big concern enough for Sigenping to be sending down policy enforcement teams, which you would think after all this time in office, he wouldn't have to do anymore. But it shows the concern that they have with local officials and their willingness to actually follow mandates coming from Beijing. And then to top that, you have weakness in the local banks, which again are lending to the local governments and to the local real estate market.
Top that with youth unemployment.
For many in China, this is the source of their retirement plan, the fact that their children are going to be working and supporting the.
Parents and the grandparents.
And the numbers are over twenty percent, the unofficial numbers are believed to be significantly higher than that.
Is President gy at this point solving this problem for the economics of it, or is he solving it for the ideology of it? Because some of his rhetoric has indicated he actually may care more about the party and the party rigor in the private sector than he cares about the economics of it.
Well, that's an excellent question.
He certainly has been very focused on using the party as the means to govern, whether it's through the government itself, whether it's to the military, whether it's to the judiciary.
It's the party that's supreme.
And he has tried to create an ideology and a unity through that. We see in the new structuring of the government that it's all the party committees who are actually setting economic policy, and the government more and more
is just an implementer. So as we see these difficulties in the government, these weaknesses in the ability to create jobs for the youth, in the challenges in attracting direct foreign investment or venture capital or private equity, the big question will be whether she jen being pivots and focuses more on market opening in creating the confidence and the conditions to continue to attract foreign business, which is necessary
if he's going to continue to grow his economy. He can't do it without foreign business being present.
We've seen him pivot before.
We saw how quickly he was willing to pivot at the end of COVID in opening up to the rest of the world, and we're starting to see signs that he's beginning to reconsider some of his economic policies to be more open and change that emphasis from such a focus on the party, not that it's ever going to go away, but to really be focused more on providing opportunities.
Look at what he's been doing in technology and the opportunities now and encouraging platform companies and the tech executives to be innovative where it wasn't that long ago when they were one of the top targets.
President G may decide that he wants to be more open the rest of the world. Is the rest of the world open to President G at this point? Certainly the United States and the West seems to be taking some actions, including this week with the restrictions on outbound investment into China. We see various actions being taken. To what extent does that hamper what President you can do? As you know so well, Deborah, foreign direct investment is down rather substantially into China, it is, and I.
Think one of the biggest questions is around confidence. Confidence in China and its leadership. Obviously, the United States has to stay very focused on its national security, and these outbound investment regulations are limited to areas that it's concerned that we might be creating competitors to our own national security interests. I think it's going to be important to
watch if other countries do the same. There definitely is a reconsideration in Western economies and looking at what their relationship is economically with China.
It's not to say that companies.
Aren't investing there and continuing to do business there, but more and more we hear they're looking at China for China, and then they're looking at the rest of the world.
Some of China's own policies, including its national Security law, are really emphasizing that fact because it's a very murky area, particularly when it comes to issues like data, and more and more companies are looking at how they can create an island in China for data and not have it linked into the rest of the world, and those issues, even though they may sound small right now, start to have a ripple effect in how CEOs and others are making their investment decisions.
And this is one of the reasons.
It's not just these geopolitical restrictions that we're seeing that are limiting direct foreign investment in China.
It's some of China's own.
Policies that are causing a concern within I think the foreign business community.
Debor.
It's always a pleasure, really a treat to have you with us. As tebro Laire, she's a CEO of Edelman Global Advisory. Coming up. It looks like we may not get that recession after all. What does that do for all our investing plans based on worst case scenarios, Well, its rit reader a black rock.
My base case is that inflation is moderating. Those real rates we talked about, should.
Come down with a FED that starts that is now stable and will start cutting rates. So I think the equity market next year will get a nice boosh from what I think will lead a reduction of the interest rate.
That's next on Wall Street Week on Bloomberg.
This is Bloomberg Wall Street Week with David Weston from Bloomberg Radio.
That is definitely not the fed's intent and has not been the FEDS intent throughout this expansion. We raised interest rates in ninety four to five without the intent of causing recession. For sure, and we didn't, and the FED is trying to do a duplicate of that soft landing now not to cause a recession.
That was former FED Vice Chair Alan Blinder on Wall Street Week back in January of two thousand, a little more than a year before the US went into a recession following a series of rate hikes. But that was then, and this is now to bring us up to date on whether the current interest rate policy is likely to give us a similar recession. Welcome back to Rick Reader. He's Blackrock CIO for Global fixed Income and head of its Global Allocation Investment team. Rick, great to have you
on Wall Street. Ras, So, where are we right now? Not too long ago, a lot of economists, including FED economists as well as Bank of America others, were saying we're going to recession. They've all changed their mind. Where are you?
So? I think?
And I did a presentation a while ago I'd called the US economy the polyurethane economy because of how resilient it is, like one of those temperpedic matches, and how resilient it is that is very hard to dent it.
And you think about I mean the economy today.
Versus twenty years ago, seventy percent consumption seventy percent services.
Think about to create a recession.
If you're seventy percent services, which are amazingly stable, they don't go into recession. Your goods far to your economy, which now fractioning of the economy has to really become devastated. The other side of it, I think people misinterpret US economy is not as interrast rate sensitive as well as twenty thirty years ago. People have locked in their mortgages already, the banking system runs differently, commercial real estate gets hurt,
companies have turned out their debt. They don't rely on the front end of the yield curve like they used to have FED funds rate. And then the last point is the big spenders on CAPAX and US economy are companies tech companies. They're not big borrowers. So I think people overestimate. When the FED raisers rates this much, you hurt parts of the economy, the regional banks, of small banks, your commercial real estate, but the rest of the economy is amazingly resilient to it.
So it's fascinating. I guess the answer is the question of why so do you feel got it wrong? Is they had the wrong model. Do we have to revise our economic models going forward for the reasons you just identified. It's a different economy there was twenty years.
Ago one hundred percent by the way, now it's a different economy today. So we try and model and project what inflation is going to look like two three years hence.
Let alone for the next year.
Think about now how the economy is evolving around AI and productivity and how jobs are going to evolve. Very hard to think about economies. People look at the analog from ten years ago, twenty years ago, and what happens when rates move?
I think you have to look.
I mean, we're trying to spend more time on as environmental conditions that you're operating within and what impacts it in other way, you know, you talk about we have a need for more people the unemployed and rates this that three and a half percent is a structural reason. You look at and we've talked about on your show a bunch of times. You look at the number of
people hired for healthcare, education, not interest rates sensitive. There's a shortage leisure, hospitality, hotels, restaurants, there are shortage of people when you have a three and a half percent unemployment.
Because it's structural.
It's pretty hard for the economy at good wages, pretty hard for the economy to go into a deep percession, win so much the economy's consumption.
So so let's take a look at the investment profile. Given what you've just said, where does the ten year want to be? Because so many investment divisions are really keyed off of where the tenure yield is. Where does it want to be right now? Because I hear people saying in the mid threes, low threes. I hear people say in the mid fours.
So you know, I think, you know, around four percent I think is a reasonable resting place.
You know. My sense is there's a.
Couple of a couple of factors that work against one another. First one is treasury is issuing an amazing amount of supply. We're going through the issues and the Treasuries just announced they're going to.
Increase the supply.
Longer on the curve, they relied on immense amounts of treasury bills.
You're seeing it's almost almost.
Three hundred billion a week gross supply, not net, but gross.
Supply of treasure bills.
So you're gonna get more supply, so that tends to push rates a bit higher.
However, inflation is coming down.
You look at the CPI data, and I was looking at the three month moving average of core CPI. If you if you strip out some of the use this funky used car.
Stuff, is only one percent.
So now you take okay, so it's actually one point one percent three month moving average, So you say, okay, a tenure. Note now the real rate net of inflation, it's not bad. I mean the level on tenure. So I don't think we're going very far. I think the
supply could push ten years a bit higher. If you said to me where we're going to be six months from now, nine months, around a year from now, I think the ten year is going to migrate lower because if you believe that inflation is coming down, which I think is right, then the ten years should start to move closer to three to three and a quarter. And I think we'll see that next year. But you know, for the next couple of months, it's sticky at these levels.
We had so many debates about hard landing soft lending. What kind of landing you suggest me, we may not have it landing at all. So given that does that change your investment outlook right now? Does it change how you invest your money?
So I say one thing about it.
I mean, I think the economy is moderating from extraordinary twelve point three percent nomenal GDP and twenty one seven and change percent and twenty two that is unbelievable. I'm not saying we can't slow a bit. And you know, even could you have a technical recession. I just think like you'd have to wake people up and tell them because you're operating at such a high level in the economy. So how do we think about it? I said, I think there are a lot of you know, equities that
make sense today. The equity markets had a really good run. Seven stocks, eight stocks have driven it. There are a lot of companies if you believe the economy is stable. You can buy a lot of businesses that traded three, four or five times cash flow if you believe the economy stable, autos, airlines, home builders, some of the energy infrastructure traded.
Pretty low multiple. So I like gowning the equity market. So I like running portfolios.
I think you have upside inequities and then you can create amazing amounts of carry the front end I.
Can talk about the front end the yield curve.
You can buy commercial paper pine six percent if you can create a six and then own some equity. And by the way, I guess your point about do I need to own a lot of ten or thirty year treasuries that at four I don't know, not that interesting. But I can buy a lot of front end, a lot of yield, and then buy some equity and so get some upside with some real income and.
The equity front Talk about the discount rate, because we're up now north of five right. Some people think it's going to come back down next year fairly quickly. Other people think it may stay up there. That really affects the value of those equities and the valuations you're talking about, doesn't it one hundred percent?
And so, by the way, my base case is that inflation is moderating. Those real rates we talked about should come down with a FED that starts that is now stable, and we'll start cutting rates. So I think the equity market next year will get a nice boost from what I think will be a.
Reduction of the interest rate.
By the way, credit spreads are also really tight. Companies don't borrow if they borrow off of their spread to treasuries, and it's they're pretty tight. So the discount rate is it's not bad today for equities, but it is my senses, it's going to come down from here.
So you went anticipating Fed cutting rates next year, I mean how early and how much?
I mean, I think the FED would like to stay on hold for a period of time. But I think as you get into the second half of the year, and you know, maybe earlier, if inflation accelerates quicker, you know, can you do start to do twenty five's a meeting.
I think so. I think so. I think these are I think these restrictive rates.
You know, my senses, I talk about your show a lot there because of the economy is not as interest rates sense have used to be. Those restrictive interest rates really hurt small banks, They really hurt commercial real estate, They hurt targeted parts of the economy which quite frankly, I think have been overdone. And the other thing they really hurt is the US government is running over thirty
trillion a debt. The Treasury has usually borrowed as treasury bills at zero, with a huge part of their of their borrowing scheme is zero.
Now it's at five and a half percent.
The debt service in this country will choke the amount of fiscal spend that we can have in the country. The FED needs to bring the raid down so that we don't create too onerous a.
Problem in terms of debt service in the country.
Since we last got to talk about on Wall Street week, you've got a new gig. It's an ETFEH tell us about ETF and why you're doing. What's the itch that you're trying to scratch that hasn't been scratched.
So there is I mean explosion of ETFs. People use them in so many different ways. You can trade them all day. They're tax efficient money ways.
People like to put them in models.
They said, I've got this ETF, they can they buy and sell anyway.
So we've been.
Asked to do an active ETF, and so there's been a tremendous growth of passive ETFs, both in credit and rates, et cetera. And now you're seeing more than people want active, so give me. In fixed income, most managers outperform indices consistently over time for a variety of reasons. There's sixty eight thousand fixed income securities. Compare that to the S and P five hundred. There's so many tools we have, and so people have asked for gosh, i'd love to
get the exposure in an ETF form. Give me something that can get me a little bit more juice. And so in this new one we're doing called Bink, you know, we've got it's a seven percent yield. You know, we manage you know, sometimes we're in securitized assets, sometimes we're in high yield. We're moving around tactically credit investment, great credit and to get that sort of yield and then have somebody it's hard as an individual to buy securitized assets.
You can buy clos or commercial mortgages to many people like evaluating the collaterals hard and so you know, we've been doing it for a million years, and so anyway, it's becoming really attractive and there's a lot of excitement around it.
Thanks you so much. That is Rick Reader of Blackrock coming up. A dollar doesn't buy what it used to. We go through a list of how much things cost these days, from sports teams to ups drivers to a reservation at REOs.
That's next on Wall Street Week on Bloomberg, this is Bloomberg Wall Street Week with David Weston from Bloomberg Radio.
This is Wall Street Week. I'm David Weston. The world of college football continues to reinvent itself as this week, four more schools USC, UCLA, Washington, and Oregon left the PAC twelve conference to join the Big Ten, rounding that ten number up to an even eighteen. To explain what's going on, Welcome out George Pine, founder and CEO of Ruined Capital. Where does this all end? We're gonna end up with two super conferences as three super conferences.
I don't know, you do feel more pressure for consolidation. I think what's unusual. First of all, college football is the number two sport in America, and it's a big business. It's a multifaceted and it's run by a very fragmented industry, and so it's a bit unwielding, and I think what you see is that the suppliers and TV networks have a bigger say because of the fragmentation and the lack of really a unified vision or leadership in college sports. So therefore it's a little bit of the wild West.
Who is running it? Is it college presidents? Is it ourthletic directors. Is it the television providers? Is it the Congress who's running it?
It's really the college presidents of the individual universities. But as you've seen, they're not always loyal either. USCUSLA leaving the packs well a conference that has been around since nineteen fifteen, right, and so it's very fragmented and self interested. There isn't a unifying group that looks out for college sports and it has the ability to lead college football.
George, great, you have at Walshert week. Thank you so much for being here. That's George Pine a ruined capital. Finally, one more thought. Money may not buy you happiness, but at this point, what can it buy you? The CPI this week confirmed that inflation is slowing in the United States, but it's still pretty high, which got us wondering what money can still buy you in this time of higher prices.
We learned this week that it can't buy you a fifth World Championship in women's soccer or football as the rest of the world calls it, when the US team lost to Sweden, but will still get a pay raise because of its agreement to split the pot with the.
Men Women's World Cup is performing quite well. We're starting to see increasing.
Traction, double digit traction as the tournament progresses.
Enough money will buy you an NFL team, but the price is going up, with estimates out this week saying it would take a cool nine point two billion dollars to get the Dallas Cowboys. That's if Jerry Jones were willing to sell it, and that's despite the fact that they haven't won a Super Bowl since nineteen ninety six.
We also learned that enough money about one hundred and seventy thousand dollars including benefits, can buy you a UPS driver for a year under the new contract with the team Stirs, though it may be coming out of the pockets of UPS shareholders.
The difference is that UPS has been negotiating this contract, which has been a big over The cost inflation from the contract in year one is quite high.
We're estimating mid high single.
Digits, whereas Fatex is now transitioning to more of a structuring of their ground in express businesses and their costs or moving the other way around.
About two or three thousand dollars will buy you a quiet luxury code from Norwegian wool, so you can look just like one of the roy family on succession.
So when you talk about quiet luxury, you know, I don't think that's anything all that new. I think most of us and most people in the audience who really have their own story to tell, they want their brand to be the one that's being warned, not another company's brand.
For something between two and twenty five million dollars, you can get a luxury condo at the Cortland in West Chelsea and Manhattan and they will throw in not one, but two pools, one for swimming laps and one for just splashing around. No amount of money will get you a reservation at exclusive New York Italian restaurant REOs. For that, you need to be one of the regulars who own
their own tables pretty much in perpetuity. But if you can't get someone to take you as their guests, you can always just buy a jar of Rayo's tasty pasta sauce to enjoy it home and Campbell's Soup this week agreed to pay two point seven billion dollars for the privilege of bringing you that Rao sauce, and this year Steve Cohen is proving there is one more thing you cannot buy, no matter how much you're willing to pay, a championship baseball team, as his record breaking spending on
the New York Mets has taken him and his team nowhere fast.
Free agency is really expensive, okay. If you want to feel a good team from free agency, that's what it costs.
If you want to field, you know.
Fill all the positions with hopefully quality players, okay. And sometimes you can get it right, and sometimes you know, things go wrong.
I'll say so, that does it for this episode of Wall Street Week. I'm David Weston. This is Bloomberg. See you next week.