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This is the Bloomberg Surveillance Podcast. I'm Tom Keene along with Paul Sweeney. Join us each day for insight from the best in economics, finance, investment, and international relations. You can also watch the show live on YouTube. Visit the Bloomberg Podcast channel on YouTube to see the show weekday mornings from seven to ten am Eastern from our global headquarters in New York City. Subscribe to the podcast on Apple, Spotify, or anywhere else you listen and always I'm Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business App. We turned out of Torston Slock. Paul, you read the note, I didn't read the note. Why don't you bring in Slock of Apollo Management?

This is the Bloomberg Surveillance Podcast. I'm Tom Keene along with Paul Sweeney. Join us each day for insight from the best in economics, finance, investment, and international relations. You can also watch the show live on YouTube. Visit the Bloomberg Podcast channel on YouTube to see the show weekday mornings from seven to ten am Eastern from our global headquarters in New York City. Subscribe to the podcast on Apple, Spotify, or anywhere else you listen and always I'm Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business App. We turned out of Torston Slock. Paul, you read the note, I didn't read the note. Why don't you bring in Slock of Apollo Management?

Absolutely?

Absolutely?

Torson Slock joins us here. He is the Apollo partner and chief economist Torston. A lot of the parlor game here on Wall Street is when will the Federal Reserve cut interest rates in twenty twenty four and by how much?

Torson Slock joins us here. He is the Apollo partner and chief economist Torston. A lot of the parlor game here on Wall Street is when will the Federal Reserve cut interest rates in twenty twenty four and by how much?

You came out with a note today saying whoa whoa, whoa, whoa whoa. There's a reasonable.

You came out with a note today saying whoa whoa, whoa, whoa whoa. There's a reasonable.

Argument that they won't cut rates in twenty twenty four, tell us what you're thinking, I and I.

Argument that they won't cut rates in twenty twenty four, tell us what you're thinking, I and I.

Thanks for having me, Paul and Tom. I think that the reality now is that we can no longer ignore how much financial conditions have eased since the December thirteen FMC meeting. We have seen the stock market reaching new all time highs. Of course, every day at the moment, as we know, we're seeing credit spreads titan a lot in investment grade, in high yield in loans. We're also seeing it issuings in January, and now it looks like in February also would be the highest January and highest beginning of the year that we have had ever in history. High yield issuance has been strong, loan issuance has been strong. On top of that, IPO activity has been picking up. M and A activity has been picking up. It really is not surprising, with this significant rebound in capital markets activity, that the employment report for January was strong, and it is really also not surprising that the inflation data also was strong. So the bottom line is I think that the market now has to realize that the data is just not slowing down, and the fat pivot has given an additional tailwind to the economy. And to financial markets and financial conditions, and to capital markets, and all that is likely to continue to be supporting growth in consumer spending, in captic spending, in hiring for most likely the better part of this year.

Thanks for having me, Paul and Tom. I think that the reality now is that we can no longer ignore how much financial conditions have eased since the December thirteen FMC meeting. We have seen the stock market reaching new all time highs. Of course, every day at the moment, as we know, we're seeing credit spreads titan a lot in investment grade, in high yield in loans. We're also seeing it issuings in January, and now it looks like in February also would be the highest January and highest beginning of the year that we have had ever in history. High yield issuance has been strong, loan issuance has been strong. On top of that, IPO activity has been picking up. M and A activity has been picking up. It really is not surprising, with this significant rebound in capital markets activity, that the employment report for January was strong, and it is really also not surprising that the inflation data also was strong. So the bottom line is I think that the market now has to realize that the data is just not slowing down, and the fat pivot has given an additional tailwind to the economy. And to financial markets and financial conditions, and to capital markets, and all that is likely to continue to be supporting growth in consumer spending, in captic spending, in hiring for most likely the better part of this year.

Is there a scenario for you where the Fed actually hikes rates in twenty twenty four.

Is there a scenario for you where the Fed actually hikes rates in twenty twenty four.

So I know Larry Summers and several others have been talking about this as a possible scenario. I do think that they would be reluctant and very reluctant to do that. But I do think at the same time that it's clear that the market has, on the back of the fit pivot, declared victory and said that inflation is no longer a problem. And the problem is that if indeed looking like it's becoming a problem again, you're having Obviously average hourly earnings is in the reins of four to five percent. This has to come further down. This is not consistent with a two percent inflation target. If you look at the NFIB survey, both for wage expectations and selling price expectations, they are all beginning to go up. And finally, you also have a number of other indicators that are leading in terms of what inflation is doing, and all those continue to point in particularly we look at some of the underlying trends in the trim mean and the media inization to also more upside. So the conclusion is we are simply not done fighting inflation, Turstan.

So I know Larry Summers and several others have been talking about this as a possible scenario. I do think that they would be reluctant and very reluctant to do that. But I do think at the same time that it's clear that the market has, on the back of the fit pivot, declared victory and said that inflation is no longer a problem. And the problem is that if indeed looking like it's becoming a problem again, you're having Obviously average hourly earnings is in the reins of four to five percent. This has to come further down. This is not consistent with a two percent inflation target. If you look at the NFIB survey, both for wage expectations and selling price expectations, they are all beginning to go up. And finally, you also have a number of other indicators that are leading in terms of what inflation is doing, and all those continue to point in particularly we look at some of the underlying trends in the trim mean and the media inization to also more upside. So the conclusion is we are simply not done fighting inflation, Turstan.

The hallmark of your work at Deutsche Banking nowt Apollo has been a holistic approach to economics. What's the character of our nominal GDP? Everybody, not everybody near, everyone's got it wrong. What's the character of our animal spirit out two in three years?

The hallmark of your work at Deutsche Banking nowt Apollo has been a holistic approach to economics. What's the character of our nominal GDP? Everybody, not everybody near, everyone's got it wrong. What's the character of our animal spirit out two in three years?

I think this is a really important question, Toron, because as should said, first of all, let's think about and let's evaluate our own meaning, the market's ability to forecast things going into twenty twenty three and twenty twenty four and twenty twenty three. Everyone everywhere, including most likely also the Fed, forecast the consensus. The market was saying we will have a recession, and we turn out to not have a recession. They continue strength in the economy. Surprised everyone.

I think this is a really important question, Toron, because as should said, first of all, let's think about and let's evaluate our own meaning, the market's ability to forecast things going into twenty twenty three and twenty twenty four and twenty twenty three. Everyone everywhere, including most likely also the Fed, forecast the consensus. The market was saying we will have a recession, and we turn out to not have a recession. They continue strength in the economy. Surprised everyone.

This year.

This year.

Everyone came in and said, oh, the Fed will cut rates the six times, maybe even seven times at some point because we will get that slowed down. And now we're sitting here a few months into the year and the economy has simply not slowed down. The employment report in January, at more than three hundred thousand jobs created, was just really, really strong. So I think a very important dimension to your question, Tom is that the US economy is just incredibly diversified. It is really difficult for the Fed to cool things down. It has turned out to be that the consume is much less sensitive to rate hikes. Corporates a lessonses to rate hikes. One of the consequence the diverse, tight economy continues to do.

Everyone came in and said, oh, the Fed will cut rates the six times, maybe even seven times at some point because we will get that slowed down. And now we're sitting here a few months into the year and the economy has simply not slowed down. The employment report in January, at more than three hundred thousand jobs created, was just really, really strong. So I think a very important dimension to your question, Tom is that the US economy is just incredibly diversified. It is really difficult for the Fed to cool things down. It has turned out to be that the consume is much less sensitive to rate hikes. Corporates a lessonses to rate hikes. One of the consequence the diverse, tight economy continues to do.

Well, and the scale of it, folks, I think the media, and I'm guilty of this as well, does a terrible job of showing the size of the American economic experiment versus other nations. We're on Apple car Play, We're on YouTube type in Bloomberg Podcasts. We've had a huge response to YouTube. Paul and I are humbled by at least as not humbled by it. Paul and I are humbled by it. And there's a live chat there where someone just told me their mother throughout their varsity jacket and they've been in therapy for thirty eight years. Why don't you continue with Torston slock is important research note this.

Well, and the scale of it, folks, I think the media, and I'm guilty of this as well, does a terrible job of showing the size of the American economic experiment versus other nations. We're on Apple car Play, We're on YouTube type in Bloomberg Podcasts. We've had a huge response to YouTube. Paul and I are humbled by at least as not humbled by it. Paul and I are humbled by it. And there's a live chat there where someone just told me their mother throughout their varsity jacket and they've been in therapy for thirty eight years. Why don't you continue with Torston slock is important research note this.

Morning, absolutely, Tom, we are speaking with Torston Slack Apollo partner and chief economists. Torston, just from an optics perspective, not an economics perspective, but from an optics perspective, how difficult would it be for bet Cherman Jpel not to cut rags this year after I don't know, strongly hinting in December that that was going to be the scenario.

Morning, absolutely, Tom, we are speaking with Torston Slack Apollo partner and chief economists. Torston, just from an optics perspective, not an economics perspective, but from an optics perspective, how difficult would it be for bet Cherman Jpel not to cut rags this year after I don't know, strongly hinting in December that that was going to be the scenario.

Yeah, I know, But I mean I think that the modics have been only interpreting what the Fed actually has been saying. He was at the press conference in December actually reasonably balanced. He was just saying that, well, for now, we're on holes and this was certainly the clear message. But more recently several from C members have been coming obviously out and saying, well, maybe we do need to stay higher for longer. So with that backdrop, I actually don't think that it's quite it's quite simple for the Fed to just continue to say, well, maybe the risks have now tilted more towards some more upside risk, both on both sides of the dual mandate, both when it comes to employment and when it comes to inflation. So on that front, I think that the FED communication challenge is actually much much more straightforward relative to the significant roller coaster that markets had been through from first again pricing six or seven cuts to now pricing three cuts, and maybe as the data again we had jobless claims that was wrong yesterday, we had inflation chaken up a bit high yesterday on the month and month. All that would make the market where a lot of the action and a lot of the movements needs to be.

Yeah, I know, But I mean I think that the modics have been only interpreting what the Fed actually has been saying. He was at the press conference in December actually reasonably balanced. He was just saying that, well, for now, we're on holes and this was certainly the clear message. But more recently several from C members have been coming obviously out and saying, well, maybe we do need to stay higher for longer. So with that backdrop, I actually don't think that it's quite it's quite simple for the Fed to just continue to say, well, maybe the risks have now tilted more towards some more upside risk, both on both sides of the dual mandate, both when it comes to employment and when it comes to inflation. So on that front, I think that the FED communication challenge is actually much much more straightforward relative to the significant roller coaster that markets had been through from first again pricing six or seven cuts to now pricing three cuts, and maybe as the data again we had jobless claims that was wrong yesterday, we had inflation chaken up a bit high yesterday on the month and month. All that would make the market where a lot of the action and a lot of the movements needs to be.

But Turstan, we're here among friends, nobody's listening. That's a Friday. Hasn't ISLM theory and aggregate demand supply theory been overwhelmed by bulk productivity across America? Hasn't basically the is curve taken over from the LM analysis?

But Turstan, we're here among friends, nobody's listening. That's a Friday. Hasn't ISLM theory and aggregate demand supply theory been overwhelmed by bulk productivity across America? Hasn't basically the is curve taken over from the LM analysis?

True? I mean, there's certainly a lot to think about it, because another way of saying that is this question whether was it supply that drove inflation up and now down or was it actually also demand? And the San Francisco Fed studies that have looked at this have found that indeed supply played a role. There two thirds of the increase the supply chains was because of supply chains that got clocked up and now being straightened out. But one third was demand. So that's why the issue now becomes Well, if demand did play a role, and maybe now we have more demands simply because of the wealth effect, because the stock market going up because of the easier financial conditions, then maybe we're having a shift in the ISLM curve where we now set the hand that is demand that's beginning to play a role in driving in nation higher. Yes, yesterday's story was that it was supply, but looking ahead, it looks like demand is beginning to become more important.

True? I mean, there's certainly a lot to think about it, because another way of saying that is this question whether was it supply that drove inflation up and now down or was it actually also demand? And the San Francisco Fed studies that have looked at this have found that indeed supply played a role. There two thirds of the increase the supply chains was because of supply chains that got clocked up and now being straightened out. But one third was demand. So that's why the issue now becomes Well, if demand did play a role, and maybe now we have more demands simply because of the wealth effect, because the stock market going up because of the easier financial conditions, then maybe we're having a shift in the ISLM curve where we now set the hand that is demand that's beginning to play a role in driving in nation higher. Yes, yesterday's story was that it was supply, but looking ahead, it looks like demand is beginning to become more important.

Turston. One final question, Paul asks, Paul didn't want to be rude. Are you buy holders sell on Apple? Which way would you go?

Turston. One final question, Paul asks, Paul didn't want to be rude. Are you buy holders sell on Apple? Which way would you go?

Tourst So I don't have any of you on individual stocks, but I would say that my main conclusion from an investing perspective is that if there's one thing that we should do as investors, it is to listen very carefully to what is the FED trying to tell us.

Tourst So I don't have any of you on individual stocks, but I would say that my main conclusion from an investing perspective is that if there's one thing that we should do as investors, it is to listen very carefully to what is the FED trying to tell us.

And you now you're supposed to say, you're supposed to say, you have to listen to Bloomberg surveillance Bloomberg.

And you now you're supposed to say, you're supposed to say, you have to listen to Bloomberg surveillance Bloomberg.

If the Fed says they will keep right higher for longer, then they will probably keep right higher for longer. So that means front end fixed income continues to look attractive.

If the Fed says they will keep right higher for longer, then they will probably keep right higher for longer. So that means front end fixed income continues to look attractive.

Did we get an answer there?

Did we get an answer there?

I'm sure you.

I'm sure you.

Turston Slock, thank you so much. Un joining us now, and you know, Paul, this is the romance you've lived on the cell side. You get on the plane, it's romantic and all that. We're looking at him on YouTube here, Dan, Iives looks like you could blow him over. He's so tired. He's in Bangkok, Thailand right now. We're thrilled. I wanted to join us on an Asian tour. Dan, how long does it take you to get done with jetlag coming back from Asia?

Turston Slock, thank you so much. Un joining us now, and you know, Paul, this is the romance you've lived on the cell side. You get on the plane, it's romantic and all that. We're looking at him on YouTube here, Dan, Iives looks like you could blow him over. He's so tired. He's in Bangkok, Thailand right now. We're thrilled. I wanted to join us on an Asian tour. Dan, how long does it take you to get done with jetlag coming back from Asia?

I mean, look it depends. I mean look it's these trips not too well worth it, but yeah, you always have some jet lag going in after that twenty one hours.

I mean, look it depends. I mean look it's these trips not too well worth it, but yeah, you always have some jet lag going in after that twenty one hours.

For those of you on Apple car Play, you can just see that Ives's channeling Deborah Kerr and the King and I here, it's the same color scheme as what Deborah was doing with Yule Brenner. Dan, serious conversation now, and you are more than qualified. I understand AI and Vidia AI Microsoft. Paul explains to me they're gonna make fancy chips. Apple's not going to do that what's the AI plan you glean for Apple?

For those of you on Apple car Play, you can just see that Ives's channeling Deborah Kerr and the King and I here, it's the same color scheme as what Deborah was doing with Yule Brenner. Dan, serious conversation now, and you are more than qualified. I understand AI and Vidia AI Microsoft. Paul explains to me they're gonna make fancy chips. Apple's not going to do that what's the AI plan you glean for Apple?

Look within Cooper Tino. The next big thing I think comes out WWDC. I mean obviously German breaking the story how they ripped the band aid off on evs, but now it's all focused on AI. We believe the AI app store, a separate AI app store, will be the first step. And I think for developers that's important because for consumers, they're going to be able to now over the next one two years be buying separate AI driven apps off of an iPhone sixteen that has exclusive AI capabilities in llms built in. This is the next phase of the growth story within Cooper Tino.

Look within Cooper Tino. The next big thing I think comes out WWDC. I mean obviously German breaking the story how they ripped the band aid off on evs, but now it's all focused on AI. We believe the AI app store, a separate AI app store, will be the first step. And I think for developers that's important because for consumers, they're going to be able to now over the next one two years be buying separate AI driven apps off of an iPhone sixteen that has exclusive AI capabilities in llms built in. This is the next phase of the growth story within Cooper Tino.

So Dan, I mean, I think what we've seen and you've certainly explained it to us very well over the years, that Apple doesn't feel the need to be first, even in iPhones, for example, they just need to come in with the best and most elegant product.

So Dan, I mean, I think what we've seen and you've certainly explained it to us very well over the years, that Apple doesn't feel the need to be first, even in iPhones, for example, they just need to come in with the best and most elegant product.

Is that kind of the strategy we're seeing with AI.

Is that kind of the strategy we're seeing with AI.

Either's certainly not first, they're certainly not leading edge, but do you fully expect them to have a play here in angle book?

Either's certainly not first, they're certainly not leading edge, but do you fully expect them to have a play here in angle book?

I mean there's two point two billion reasons. I mean, that's the amount of iOS devices for them, they don't have to be first because they have a golden install base that's unrivaled. Then clearly right now, I mean sentiment's negative on Apple out there, and I believe what the streets missing is going to be this renaissance of growth, not just AI into the Apple ecosystem, but I think it's gonna respawn just more and more upgrade opportunities we go into the next you're called twelve eight, ten months, and that's that's gonna be huge for the some of the parts. You know, Keen talked about AI in terms of Nvidium, Microsoft, but now it's the second, third, fourth derivatives of this AI revolution that hit.

I mean there's two point two billion reasons. I mean, that's the amount of iOS devices for them, they don't have to be first because they have a golden install base that's unrivaled. Then clearly right now, I mean sentiment's negative on Apple out there, and I believe what the streets missing is going to be this renaissance of growth, not just AI into the Apple ecosystem, but I think it's gonna respawn just more and more upgrade opportunities we go into the next you're called twelve eight, ten months, and that's that's gonna be huge for the some of the parts. You know, Keen talked about AI in terms of Nvidium, Microsoft, but now it's the second, third, fourth derivatives of this AI revolution that hit.

So, Danny, you're in Asia as we speak.

So, Danny, you're in Asia as we speak.

What's the feeling there about China and Apple and as an end up market for Apple products going forward there? Because as you are, well, that's probably the big issue for the stock right now.

What's the feeling there about China and Apple and as an end up market for Apple products going forward there? Because as you are, well, that's probably the big issue for the stock right now.

Yeah, earlier this week in Hong Kong and you're in around China. It's a it's like the the video thriller, the negative the horrors show right in terms of the view right now of China tech and I think fears about just the economy and China, I think when he looks at Apple, it all comes down to what does demand look like in economy like that. We believe to that point it has started to stabilize. I believe the streets factoring in a lot more negative than we're seeing here. I think the overall sentiment right now is basically anything but China and you own us tech revolution. No one wants to be outside the bar. At ten pm, Win it goes to four am.

Yeah, earlier this week in Hong Kong and you're in around China. It's a it's like the the video thriller, the negative the horrors show right in terms of the view right now of China tech and I think fears about just the economy and China, I think when he looks at Apple, it all comes down to what does demand look like in economy like that. We believe to that point it has started to stabilize. I believe the streets factoring in a lot more negative than we're seeing here. I think the overall sentiment right now is basically anything but China and you own us tech revolution. No one wants to be outside the bar. At ten pm, Win it goes to four am.

I'm gonna talk with Paul Sweeney on this, and then we're going to go to Dan. I I want to hear from both you on this. There's got to be a point where operating officers of any visible company just get angry. Yeah, and the CFO turns to the CEO and says, look, we're modeling this out the next eighteen months, Paul Sweeney, let's do it now. Is that where Apple is now? Paul?

I'm gonna talk with Paul Sweeney on this, and then we're going to go to Dan. I I want to hear from both you on this. There's got to be a point where operating officers of any visible company just get angry. Yeah, and the CFO turns to the CEO and says, look, we're modeling this out the next eighteen months, Paul Sweeney, let's do it now. Is that where Apple is now? Paul?

You know, I think for China and Dan. I'll get to Dan on this.

You know, I think for China and Dan. I'll get to Dan on this.

But for China, it's twenty percent of their sales, it's a huge part of their infrastructure. They have to be there. Tim Cook is over there all the time trying to make it work here. So Dan, I mean, is there a scenario where China is not, you know, a critical market for Apple.

But for China, it's twenty percent of their sales, it's a huge part of their infrastructure. They have to be there. Tim Cook is over there all the time trying to make it work here. So Dan, I mean, is there a scenario where China is not, you know, a critical market for Apple.

Look, I mean it's the hearts and lungs of Apple in term, not the growth of course from a supply perspective. And that's that's the reality. And I think Apple recognizes you have two hundred million iPhones in China. They've gained threeing bits of market share the last eighteen months. Just because of what they're going through. They're not throwing in the white towel.

Look, I mean it's the hearts and lungs of Apple in term, not the growth of course from a supply perspective. And that's that's the reality. And I think Apple recognizes you have two hundred million iPhones in China. They've gained threeing bits of market share the last eighteen months. Just because of what they're going through. They're not throwing in the white towel.

But dad, come on, let's see it for they got nobody's got a profit machine like Apple. Let's start with it basic summary here, there's almost a point where just put on Apple they go enough and do something financially to write the ship. Is that feasible?

But dad, come on, let's see it for they got nobody's got a profit machine like Apple. Let's start with it basic summary here, there's almost a point where just put on Apple they go enough and do something financially to write the ship. Is that feasible?

Look, I think for app anything's possible, and there was like all all options are on the table in terms of where they can navigate things. And for Apple right now they are in just a massive position of strength because of the installments, and I think they recognize cook they'll they'll navigate headwinds. And China it's again to the other side is because of what's on the horizon. It's start with the vision bro then it's Ai app store, and then it's AI with an iPhone.

Look, I think for app anything's possible, and there was like all all options are on the table in terms of where they can navigate things. And for Apple right now they are in just a massive position of strength because of the installments, and I think they recognize cook they'll they'll navigate headwinds. And China it's again to the other side is because of what's on the horizon. It's start with the vision bro then it's Ai app store, and then it's AI with an iPhone.

Get one more in here? Can I stay off the WACC in a Bulberg terminal? The return on invested capital for this dog of Coopertino is fifty five percent. I've never said that number of folks in I'm teen years exactly.

Get one more in here? Can I stay off the WACC in a Bulberg terminal? The return on invested capital for this dog of Coopertino is fifty five percent. I've never said that number of folks in I'm teen years exactly.

Hey, Dan, real quickly, what's the prognosis here on the Apples decision to back out of the car business.

Hey, Dan, real quickly, what's the prognosis here on the Apples decision to back out of the car business.

I think that was just Ryan Wisner law where they to rip the band aid off focus on on AI. Obviously a decade lost, but for them, you can't keep putting good money after bad. They got focused on AI. This is no different than Zuckerberg and Meta you know, taken away from metaverse going toward AI. It's the smart move they needed to do it, and look it was. It was a painful learning lesson I think.

I think that was just Ryan Wisner law where they to rip the band aid off focus on on AI. Obviously a decade lost, but for them, you can't keep putting good money after bad. They got focused on AI. This is no different than Zuckerberg and Meta you know, taken away from metaverse going toward AI. It's the smart move they needed to do it, and look it was. It was a painful learning lesson I think.

For Cook, right, Dan, seriously, safe travels, your trooper, love what you're doing. I don't you know, I don't agree with them, but you know, small detail, Dan, the wet bush. It's not that we agree or disagree on bihled cell. Mister Reive's leading the charge for the enthusiasts YEP of artificial intelligence, and this is our technology Conversation of the month. It's March first, but we're done, Paul after mister Narrier, Antonio Nairy of HPE, their CEO, and I'm going to put up here for those of you on YouTube you can see one of my most beloved Hewlett and Packard artifacts. This is the twelve see that got me into this chair with the obligatory CFA stick around it and Sweeney's got their killer Antonio Nairy HP twelve c app on his Apple iPhone. Mister Nay, honored to have you with us today. I want to carry on from Chris Miller's wonderful Chip Wars, the battle of say Silicon Graphics coming into HPE, and all of his hot air about AI. You've got Hpe, Green Lake. How are you going to join in Vidia? In Microsoft? You're good competitors in the excitement of AI. What's the path over the next two years?

For Cook, right, Dan, seriously, safe travels, your trooper, love what you're doing. I don't you know, I don't agree with them, but you know, small detail, Dan, the wet bush. It's not that we agree or disagree on bihled cell. Mister Reive's leading the charge for the enthusiasts YEP of artificial intelligence, and this is our technology Conversation of the month. It's March first, but we're done, Paul after mister Narrier, Antonio Nairy of HPE, their CEO, and I'm going to put up here for those of you on YouTube you can see one of my most beloved Hewlett and Packard artifacts. This is the twelve see that got me into this chair with the obligatory CFA stick around it and Sweeney's got their killer Antonio Nairy HP twelve c app on his Apple iPhone. Mister Nay, honored to have you with us today. I want to carry on from Chris Miller's wonderful Chip Wars, the battle of say Silicon Graphics coming into HPE, and all of his hot air about AI. You've got Hpe, Green Lake. How are you going to join in Vidia? In Microsoft? You're good competitors in the excitement of AI. What's the path over the next two years?

Well, good one and Tom and Paul, thanks for having me today. And obviously we are living an massive inflection point where the AI, where I think you know, is the most revolution of technology or lifetime, is going to change everything the way we work with where we live. And when you think about that opportunity I think about the opportunity to change everything from a technology standpoint, but also from the business standpoint, and so US with HP Green Lake, we have a unique opportunity to democratize these AI technology to everyone because today AI has been only used for the large institution its government and academia. But going forward, enterprise have to ads those technology.

Well, good one and Tom and Paul, thanks for having me today. And obviously we are living an massive inflection point where the AI, where I think you know, is the most revolution of technology or lifetime, is going to change everything the way we work with where we live. And when you think about that opportunity I think about the opportunity to change everything from a technology standpoint, but also from the business standpoint, and so US with HP Green Lake, we have a unique opportunity to democratize these AI technology to everyone because today AI has been only used for the large institution its government and academia. But going forward, enterprise have to ads those technology.

I get like Sid, I get the AI idea within computer science. It's like what you've done in your leadership over the US at Hewlett Packard. But what I don't understand, and I think there's a lot of doubters when you say an HPE Greenlake you're going to unleash the potential of your people. What does it actually mean two years out.

I get like Sid, I get the AI idea within computer science. It's like what you've done in your leadership over the US at Hewlett Packard. But what I don't understand, and I think there's a lot of doubters when you say an HPE Greenlake you're going to unleash the potential of your people. What does it actually mean two years out.

Well, it means you now a significant amount of automation and business inside that you can gather through the data and the application these technologies. We see that across multiple vectors or industries, the robotics in manufacturing, through finding cures.

Well, it means you now a significant amount of automation and business inside that you can gather through the data and the application these technologies. We see that across multiple vectors or industries, the robotics in manufacturing, through finding cures.

For major diseases.

For major diseases.

We have some amazing use cases we're working today with AI, finding an asserting a queue for Alzheimer's and dementia. You know, one of the things we're doing is trying to model entirely neural neurological brain to find what the protein is that causing those issues, but also better climate research and forecasting. But when you bring it to enterprise, it's all about productive you know, in the legal space and the finance space, in the operation space, and this large language model accelerates that set of capabilities, Antonio.

We have some amazing use cases we're working today with AI, finding an asserting a queue for Alzheimer's and dementia. You know, one of the things we're doing is trying to model entirely neural neurological brain to find what the protein is that causing those issues, but also better climate research and forecasting. But when you bring it to enterprise, it's all about productive you know, in the legal space and the finance space, in the operation space, and this large language model accelerates that set of capabilities, Antonio.

What I think a lot of investors are trying to figure out here in these early innings of AI is how much of this AI spending in terms of capital expenditures is incremental or how much of it is taken away from other tech budgets.

What I think a lot of investors are trying to figure out here in these early innings of AI is how much of this AI spending in terms of capital expenditures is incremental or how much of it is taken away from other tech budgets.

Maybe it budgets for example. What's your experience so far.

Maybe it budgets for example. What's your experience so far.

Yeah, Paula, I will say AI has a life cycle from training to fine tune into inferancy. Most of the action in the last five quarters or so since we have going through this hype has been on the training side. These are companies, unique companies that are building large language models now exceeding a trillion parameters if you will, and they need a lot of compute power right to keep training and retraining the model, to reduce the cost of those models, but also to make it more accurate so you can trust it. Enterprises are in the early stages, and I don't think they're going to build the models itself. They're going to take a model, They're going to give context to the model with their data in a location where they can afford. Honestly, I think that's the why reason why grileg is important in as a service model, you only pay for what you consume. Versus are laying tens of millions of dollars of capex upfront, and then the value comes from the infancy where you deploy the model, where the data is generated so you can actually deliver the outcome, whether it's in all processing, video surveillance, or whether it is you know, in the manufacturing floor to automate processes. This is where we are in the early stages, and I think you know that's gonna you know, it's going to be one of the biggest growth in twenty four and twenty five.

Yeah, Paula, I will say AI has a life cycle from training to fine tune into inferancy. Most of the action in the last five quarters or so since we have going through this hype has been on the training side. These are companies, unique companies that are building large language models now exceeding a trillion parameters if you will, and they need a lot of compute power right to keep training and retraining the model, to reduce the cost of those models, but also to make it more accurate so you can trust it. Enterprises are in the early stages, and I don't think they're going to build the models itself. They're going to take a model, They're going to give context to the model with their data in a location where they can afford. Honestly, I think that's the why reason why grileg is important in as a service model, you only pay for what you consume. Versus are laying tens of millions of dollars of capex upfront, and then the value comes from the infancy where you deploy the model, where the data is generated so you can actually deliver the outcome, whether it's in all processing, video surveillance, or whether it is you know, in the manufacturing floor to automate processes. This is where we are in the early stages, and I think you know that's gonna you know, it's going to be one of the biggest growth in twenty four and twenty five.

Antonio, you just reported earnings. You took your four year guidance down. That was in part due to the networking business leading to that miss, and that was one of your better performing businesses last year. What's changed for you in that business?

Antonio, you just reported earnings. You took your four year guidance down. That was in part due to the networking business leading to that miss, and that was one of your better performing businesses last year. What's changed for you in that business?

You know, it's a little bit the the success we have had, right so, in the last two years, we raised our revenues in the networking business by two billion dollars. We took share from Cisco, and we have an amazing portfolio. And I just came back from all Congress. You can see the use cases of inferencing at the edge of the network, for example, the monetization of five G and private five G. But what's going on now, Customers are digesting the last two years purchases. We're very significant. We grew over forty percent year over year, and so this comes back. But this is why the merger with Juniper in the networking space is going to be a terrific addition to our portfolio and the creation for us going forward.

You know, it's a little bit the the success we have had, right so, in the last two years, we raised our revenues in the networking business by two billion dollars. We took share from Cisco, and we have an amazing portfolio. And I just came back from all Congress. You can see the use cases of inferencing at the edge of the network, for example, the monetization of five G and private five G. But what's going on now, Customers are digesting the last two years purchases. We're very significant. We grew over forty percent year over year, and so this comes back. But this is why the merger with Juniper in the networking space is going to be a terrific addition to our portfolio and the creation for us going forward.

We have time, sir for one more question. I've just got to go back and folks, full disclosures. I'm going to redo it as a book of the summer chip Wars, Chris Miller's fabulous book. Antonio Seymour Kray was with controlled data and all that, and he made a wonder computer of my childhood out of Wisconsin and Minnesota. After three mergers, Silicon Graphics and all Hewlett Packard Enterprise, which people think is stodgy, picks up one of the magic names in twenty nineteen in computers. What are you going to do with Cray excess scale?

We have time, sir for one more question. I've just got to go back and folks, full disclosures. I'm going to redo it as a book of the summer chip Wars, Chris Miller's fabulous book. Antonio Seymour Kray was with controlled data and all that, and he made a wonder computer of my childhood out of Wisconsin and Minnesota. After three mergers, Silicon Graphics and all Hewlett Packard Enterprise, which people think is stodgy, picks up one of the magic names in twenty nineteen in computers. What are you going to do with Cray excess scale?

Well, I mean amazing company, amazing companies that changed the landscaping computing. Both now Cray and SGI Silicon Graphic are part of our server business delivering these amazing systems. We call it supercomputing to give a sense. Those systems today are deploying Department of Energy and have many coming online. And so our goal is to use the system to solve some of the biggest challenges, to design better engines, more sustainable solutions in the life science and climate research, sustainability. So this is why we made the investment. I think I would say, Tom, what people misunderstood when we bought Cray. We bought a company that had silicon and software, and we're able to turn that intrough a culpability. That's all these strategies. That's why we are excited about it.

Well, I mean amazing company, amazing companies that changed the landscaping computing. Both now Cray and SGI Silicon Graphic are part of our server business delivering these amazing systems. We call it supercomputing to give a sense. Those systems today are deploying Department of Energy and have many coming online. And so our goal is to use the system to solve some of the biggest challenges, to design better engines, more sustainable solutions in the life science and climate research, sustainability. So this is why we made the investment. I think I would say, Tom, what people misunderstood when we bought Cray. We bought a company that had silicon and software, and we're able to turn that intrough a culpability. That's all these strategies. That's why we are excited about it.

We're at a time antony and aary. You got to come to New York, you got to come to in our studio. I need to show you my HP twelve C mister Neary with HPE, the wonderful follow on of all the work at cult.

We're at a time antony and aary. You got to come to New York, you got to come to in our studio. I need to show you my HP twelve C mister Neary with HPE, the wonderful follow on of all the work at cult.

Packard Cody, I'll come back.

Packard Cody, I'll come back.

This is a joy out of Chicago with Bandery and Capital Management. Victoria Bills joins us with incredibly detailed notes about where we are in, what to do with money, tell us what Bandery and does exactly? What is the client tele what's your headache on a Monday morning?

This is a joy out of Chicago with Bandery and Capital Management. Victoria Bills joins us with incredibly detailed notes about where we are in, what to do with money, tell us what Bandery and does exactly? What is the client tele what's your headache on a Monday morning?

Oh wow?

Oh wow?

Well, personally, my headache this morning is just the jet lag getting in. But I'm super excited to be here Bannery and Capital. What we do is we're an alternative investment platform for financial advisors to access alternam investment solutions on behalf of their clients. So we're talking reads, private equity, venture capital, anything related to the private markets. Essentially, we help to be a facilitator for financial advisors.

Well, personally, my headache this morning is just the jet lag getting in. But I'm super excited to be here Bannery and Capital. What we do is we're an alternative investment platform for financial advisors to access alternam investment solutions on behalf of their clients. So we're talking reads, private equity, venture capital, anything related to the private markets. Essentially, we help to be a facilitator for financial advisors.

Then, what Paul and I've been talking about all this week is the valuation of private equity and credit given that there's no transparency. What transparency do you see it? Banery in on this new PAM, I write exploding industry.

Then, what Paul and I've been talking about all this week is the valuation of private equity and credit given that there's no transparency. What transparency do you see it? Banery in on this new PAM, I write exploding industry.

Ye oh absolutely.

Ye oh absolutely.

A lot of what we're seeing right now is again there is a lot of delay or lag in reporting when it comes to private equity credit. But what we try to do is we work directly with asset managers to help them understand how they can better service the financial advisory space. Financial advisors work with clients that are, for the most part, like people like myself and people like you, guys who are just looking to build on their wealth and so they want to know that their investments are safe. What we try to do is provide a lens of due diligence from an investment and operational perspective as well to help financial to help the financial advisor fully understand the scope and scale of what they're getting so.

A lot of what we're seeing right now is again there is a lot of delay or lag in reporting when it comes to private equity credit. But what we try to do is we work directly with asset managers to help them understand how they can better service the financial advisory space. Financial advisors work with clients that are, for the most part, like people like myself and people like you, guys who are just looking to build on their wealth and so they want to know that their investments are safe. What we try to do is provide a lens of due diligence from an investment and operational perspective as well to help financial to help the financial advisor fully understand the scope and scale of what they're getting so.

She's not worried about what the FED is going to do.

She's not worried about what the FED is going to do.

Partially I am.

Partially I am.

I'm always I'm always worried about the FED. I think it's very It's always important to kind of keep what's happening in mind. And like for me, growing up, I came like I was in a I grew up in a zero interest rate environment. So now that things are up to five percent, I would say that's kind of normal.

I'm always I'm always worried about the FED. I think it's very It's always important to kind of keep what's happening in mind. And like for me, growing up, I came like I was in a I grew up in a zero interest rate environment. So now that things are up to five percent, I would say that's kind of normal.

But I'm definitely assaulting.

But I'm definitely assaulting.

But at least some Mateo and Victoria Bills. I'm getting hammered today.

But at least some Mateo and Victoria Bills. I'm getting hammered today.

These guys are just you know, the US.

These guys are just you know, the US.

He her that it is thankfully so so Victoria.

He her that it is thankfully so so Victoria.

I was actually surprised to learn, you know, years ago, how much the average retail advisor is allocating to alternatives. I thought, but it would have been a really small number, if not zero, But I'm hearing it's meaningful. It's more than five percent of a port portfolio. For a lot of these folks talk to us about kind of what you think or what you're hearing from your clients is a is a usable allocation in a traditional sixty forty portfolio?

I was actually surprised to learn, you know, years ago, how much the average retail advisor is allocating to alternatives. I thought, but it would have been a really small number, if not zero, But I'm hearing it's meaningful. It's more than five percent of a port portfolio. For a lot of these folks talk to us about kind of what you think or what you're hearing from your clients is a is a usable allocation in a traditional sixty forty portfolio?

Two alternatives?

Two alternatives?

Great question. I would say, like a traditional allocation, we're looking at around ten to fifteen percent in terms of allocations to alternatives, But of course that's also contingent upon your client's risk profile, timeline, liquidity restraints. There are a lot of things that come into play outside of just what would be like a standard or like a traditional allocation. And always keep in keeping in mind again like those liquidity restraints. So one of the things that we do is we offer not only just private vehicles, but also forty ACT vehicles and forty ACT vehicles.

Great question. I would say, like a traditional allocation, we're looking at around ten to fifteen percent in terms of allocations to alternatives, But of course that's also contingent upon your client's risk profile, timeline, liquidity restraints. There are a lot of things that come into play outside of just what would be like a standard or like a traditional allocation. And always keep in keeping in mind again like those liquidity restraints. So one of the things that we do is we offer not only just private vehicles, but also forty ACT vehicles and forty ACT vehicles.

So it was a forty ACT vehicle.

So it was a forty ACT vehicle.

So forty ACT vehicle essentially allows.

So forty ACT vehicle essentially allows.

For securities Exchange Act of nineteen forty yes, forty act.

For securities Exchange Act of nineteen forty yes, forty act.

Okay, So Securities Exchange Act basically allows for fiduciary discretion but also higher transparency on the spectrum.

Okay, So Securities Exchange Act basically allows for fiduciary discretion but also higher transparency on the spectrum.

One of the engining areas on the alternative side that it's just blown me away and its growth has been private credit. I mean, it's been such a hot area, and I always say, if I came back to Wall Street again, I might think about going into private credit directly.

One of the engining areas on the alternative side that it's just blown me away and its growth has been private credit. I mean, it's been such a hot area, and I always say, if I came back to Wall Street again, I might think about going into private credit directly.

It seems like a great business.

It seems like a great business.

We all know about private equity, but private credit something relatively new.

We all know about private equity, but private credit something relatively new.

How do you guys think about private credit?

How do you guys think about private credit?

Very positive around private credit. I'm more bullish around actually smaller levels of private credit. So when we think about the space where essentially now the interest rates have gone up.

Very positive around private credit. I'm more bullish around actually smaller levels of private credit. So when we think about the space where essentially now the interest rates have gone up.

The average I would say, like.

The average I would say, like.

The average like business owner, someone who has like less than like a million in like revenue, they're having a difficult time finding loans from banks. So if you, for example, are trying to get non deluded capital outside of VC small credit loans, private credit private credit loans are actually a great opportunity and they're great growing space. So looking at private credit funds that have that basically work with companies that have less than about five five million or working working to provide like five million dollars in.

The average like business owner, someone who has like less than like a million in like revenue, they're having a difficult time finding loans from banks. So if you, for example, are trying to get non deluded capital outside of VC small credit loans, private credit private credit loans are actually a great opportunity and they're great growing space. So looking at private credit funds that have that basically work with companies that have less than about five five million or working working to provide like five million dollars in.

Life and there are investment vehicles for your clients to get some exposure to that.

Life and there are investment vehicles for your clients to get some exposure to that.

Absolutely, yes, So we have a actually we do have a private credit vehicle on our roster right now called Meriwether Capital Group. They provide what's called the Hero Fund. And the amazing thing about is that they essentially invest in businesses within the Pacific Northwest and their mom and pops stores particularly, So these are basically small town, small time companies, but very good balance sheets, very good like debt to ibadah and essentially like they're being managed very well, but are not a client when it comes to what the traditional banks are looking for, large private credit funds would be looking for.

Absolutely, yes, So we have a actually we do have a private credit vehicle on our roster right now called Meriwether Capital Group. They provide what's called the Hero Fund. And the amazing thing about is that they essentially invest in businesses within the Pacific Northwest and their mom and pops stores particularly, So these are basically small town, small time companies, but very good balance sheets, very good like debt to ibadah and essentially like they're being managed very well, but are not a client when it comes to what the traditional banks are looking for, large private credit funds would be looking for.

You came out of the Babson combine. The Babson combine. It's not yeah, pound for pound, it's great and part of their courage back forty years I lily looked out a window years ago at the David Babson Institute building. But the answer is up in Wellesley Hills and you go up the road past the country Club, and here's this oasis of bigger, broader thinking. Sift that through artificial intelligence, where do you look on AI? I mean feature in Nvidio. But does everyone win an AI or is it a narrow group that you've really got to do some work on.

You came out of the Babson combine. The Babson combine. It's not yeah, pound for pound, it's great and part of their courage back forty years I lily looked out a window years ago at the David Babson Institute building. But the answer is up in Wellesley Hills and you go up the road past the country Club, and here's this oasis of bigger, broader thinking. Sift that through artificial intelligence, where do you look on AI? I mean feature in Nvidio. But does everyone win an AI or is it a narrow group that you've really got to do some work on.

I love this question.

I love this question.

Okay, can I go home? I'm leaving right now, go back A.

Okay, can I go home? I'm leaving right now, go back A.

It's AI is one of those hot topics that everyone is very excited about right now without getting into like the nitty gritty details, there is a lot of Essentially, I would say that there's a lot of noise surrounding it. So true AI in the sense we're looking at companies or we're looking at essentially the ability to create more generative AI. So to me, that's where the real market is using AI tools, for example, to create better create market efficiencies, whether that's using I use AI for example or chat GBT to draft emails for myself, or can you.

It's AI is one of those hot topics that everyone is very excited about right now without getting into like the nitty gritty details, there is a lot of Essentially, I would say that there's a lot of noise surrounding it. So true AI in the sense we're looking at companies or we're looking at essentially the ability to create more generative AI. So to me, that's where the real market is using AI tools, for example, to create better create market efficiencies, whether that's using I use AI for example or chat GBT to draft emails for myself, or can you.

Use AI to draft emails?

Use AI to draft emails?

I do, yes, so well.

I do, yes, so well.

Or and I'll even say, like, hey, I want to draft an email to say like I I look like looking for an opportunity to network, and it'll spout four paragraphs and they'll say, okay, make it one paragraph and it'll do the exact same thing but in one paragraph. And then I can even say for example, I used fun example of like using AI to basically ask the question of how do I optimize my social media things? There are a lot of things that AI.

Or and I'll even say, like, hey, I want to draft an email to say like I I look like looking for an opportunity to network, and it'll spout four paragraphs and they'll say, okay, make it one paragraph and it'll do the exact same thing but in one paragraph. And then I can even say for example, I used fun example of like using AI to basically ask the question of how do I optimize my social media things? There are a lot of things that AI.

She's spouting four paragraphs. Here, here's my AI all capital letters. I can't meet at ten fifteen boom. What's AI going to do for me.

She's spouting four paragraphs. Here, here's my AI all capital letters. I can't meet at ten fifteen boom. What's AI going to do for me.

On that email?

On that email?

It's essentially it will kind of it. I mean, when it comes to like, what do you do on that email, I'm sure there's not much that AI can do for that.

It's essentially it will kind of it. I mean, when it comes to like, what do you do on that email, I'm sure there's not much that AI can do for that.

Mister Bloomberg can do something for that will show me the door.

Mister Bloomberg can do something for that will show me the door.

But it's essentially there's a lot of opportunities in AI. But what we want to focus on more is on the generative side of AI. So while it's good for operational efficiency making certain that you're sending the right emails, trying to figure out what has tags to use where a lot of the AI tools are being used right now, is essentially to try and get around where other people weren't able to work in the space.

But it's essentially there's a lot of opportunities in AI. But what we want to focus on more is on the generative side of AI. So while it's good for operational efficiency making certain that you're sending the right emails, trying to figure out what has tags to use where a lot of the AI tools are being used right now, is essentially to try and get around where other people weren't able to work in the space.

Victoria, thank you so much having me Henryan of Chicago. Victoria Bills joins us. This morning, I got to write an email in the break good luck with spout it out four paragraphs. Longest email I've ever done is three sentences. You daily look at the front pages around the world. What do you got for the newspapers?

Victoria, thank you so much having me Henryan of Chicago. Victoria Bills joins us. This morning, I got to write an email in the break good luck with spout it out four paragraphs. Longest email I've ever done is three sentences. You daily look at the front pages around the world. What do you got for the newspapers?

All right, this one stuck out to me. There finally could be an IPO for athletes. This is in the New York Post. I had to read through this a few times. So it's a new investment platform. It's called Vestible. It allows fans to buy and sell shares in the future on the field earnings of college professional athlete receive federal approval to begin trading on the US stock market. Denver Broncos linebacker Baron Browning he's going to headline their IPO the week of March eighteenth. So it's really intricate as to how it works, but it's an interesting story as to how this can.

All right, this one stuck out to me. There finally could be an IPO for athletes. This is in the New York Post. I had to read through this a few times. So it's a new investment platform. It's called Vestible. It allows fans to buy and sell shares in the future on the field earnings of college professional athlete receive federal approval to begin trading on the US stock market. Denver Broncos linebacker Baron Browning he's going to headline their IPO the week of March eighteenth. So it's really intricate as to how it works, but it's an interesting story as to how this can.

So he gets a big chunk of the ip he does.

So he gets a big chunk of the ip he does.

He gets about eighty percent of the proceeds.

He gets about eighty percent of the proceeds.

From his He gets cash today. Now he's on the last year. I guess I'm a rookie contract. So he's about to go to free agency. And if he does, if I buy a share of this guy, I get a piece of his incremental upside in his new contracts Now and going forward. So that's my risk return opportunity as a shareholder.

From his He gets cash today. Now he's on the last year. I guess I'm a rookie contract. So he's about to go to free agency. And if he does, if I buy a share of this guy, I get a piece of his incremental upside in his new contracts Now and going forward. So that's my risk return opportunity as a shareholder.

Okay, I'm looking at this. If you equitize his income, he gets a capital gains treatment out of an IPO yep, versus ordinary income as.

Okay, I'm looking at this. If you equitize his income, he gets a capital gains treatment out of an IPO yep, versus ordinary income as.

That makes a good point. Any thinking about that, I don't know. I always thinking of taxes. Yeah, possible.

That makes a good point. Any thinking about that, I don't know. I always thinking of taxes. Yeah, possible.

Just monetizing that revenue stream going forward.

Just monetizing that revenue stream going forward.

So what's the depreciation exactly?

So what's the depreciation exactly?

That's the risk yep.

That's the risk yep.

Okay, good stuff, yeah, okay. We have a big pre wedding party today.

Okay, good stuff, yeah, okay. We have a big pre wedding party today.

Okay, is there anybody in my isle at Bloomberg not getting married? Lee's getting married. Everybody's getting married.

Okay, is there anybody in my isle at Bloomberg not getting married? Lee's getting married. Everybody's getting married.

It's amazing.

It's amazing.

They've all got Bride's marri right, Bride's Magazine, Arizona's over there, She's got Bride's Magaze, like four pages thick.

They've all got Bride's marri right, Bride's Magazine, Arizona's over there, She's got Bride's Magaze, like four pages thick.

Well, this this is like big time as riches man is getting married and like all the A list slubs globally all coming.

Well, this this is like big time as riches man is getting married and like all the A list slubs globally all coming.

Out to it.

Out to it.

What do you got, Lisa explained, Do.

What do you got, Lisa explained, Do.

You have Mukesh and Bonnie? It's his youngest son, a non m body three day celebration. Okay, this guy doesn't get married till July twelfth, but it starts today. You have people like Rihanna performing. You have American illusionist David Blaine, he's going to be performing there. You have five hundred types of dishes. But this is like big wigs showing up. We're talking about meta platforms. Mark Zuckerberg, he's going to the ding the thing, Micro's co founder Bill Gates, Black Rock co founder Larry Think you have Sundar for alphabet CEO. I mean this is like big time and it just shows like the reliance. Yes, yes, yes, isn't that worth there's one hundred and ten billion dollars you have to go Now. My question is what kind of gift? What kind of check are you handing out at this kind of wedding?

You have Mukesh and Bonnie? It's his youngest son, a non m body three day celebration. Okay, this guy doesn't get married till July twelfth, but it starts today. You have people like Rihanna performing. You have American illusionist David Blaine, he's going to be performing there. You have five hundred types of dishes. But this is like big wigs showing up. We're talking about meta platforms. Mark Zuckerberg, he's going to the ding the thing, Micro's co founder Bill Gates, Black Rock co founder Larry Think you have Sundar for alphabet CEO. I mean this is like big time and it just shows like the reliance. Yes, yes, yes, isn't that worth there's one hundred and ten billion dollars you have to go Now. My question is what kind of gift? What kind of check are you handing out at this kind of wedding?

Exactly? Gift? I don't know.

Exactly? Gift? I don't know.

Handlesticks always make a good gift.

Handlesticks always make a good gift.

Hey, mine is a case in there against it that really goes well.

Hey, mine is a case in there against it that really goes well.

Next, luxury skiing in the Alps, getting even.

Next, luxury skiing in the Alps, getting even.

Fa Sweeny story.

Fa Sweeny story.

Yes he's gonna love this. Okay, how would you like your own ski?

Yes he's gonna love this. Okay, how would you like your own ski?

Butler need it?

Butler need it?

Who shows up with extra gloves boots like right there ready for you?

Who shows up with extra gloves boots like right there ready for you?

That's called still to know.

That's called still to know.

You have the helicopter for just over two grand. It could take you to a mountaintop restaurant. You can indulge in two thousand bottle of Tuscan red. You know, here's the thing. Winter are getting warmer. Let's know, they're trying to attract these big spenders. That's why they're doing the Does it matter if.

You have the helicopter for just over two grand. It could take you to a mountaintop restaurant. You can indulge in two thousand bottle of Tuscan red. You know, here's the thing. Winter are getting warmer. Let's know, they're trying to attract these big spenders. That's why they're doing the Does it matter if.

The Alps I'm speaking unbriefed is running out of snow?

The Alps I'm speaking unbriefed is running out of snow?

Yeah, I mean it's every year. The question is where do you go? Do you go east to the to Europe or west in the US. And that's what people ask I'm going west in a couple of years.

Yeah, I mean it's every year. The question is where do you go? Do you go east to the to Europe or west in the US. And that's what people ask I'm going west in a couple of years.

But I'm showing my age. You stay with me all your fossils on YouTube live. That's scene in the beginning of Charade where Carrie Grant shows up on the European and Audrey heppern is sitting there. That's all I want the Can the butler give me the coolness of Carrie Grant and Audrey.

But I'm showing my age. You stay with me all your fossils on YouTube live. That's scene in the beginning of Charade where Carrie Grant shows up on the European and Audrey heppern is sitting there. That's all I want the Can the butler give me the coolness of Carrie Grant and Audrey.

Right there at your beck and call yes.

Right there at your beck and call yes.

It defines for a generation European.

It defines for a generation European.

Skiing, m skiing. It was a whole different gig. Yes, it's great.

Skiing, m skiing. It was a whole different gig. Yes, it's great.

Why is it different?

Why is it different?

It's just the like, it's just the gig up in the Alps.

It's just the like, it's just the gig up in the Alps.

That's just it's so international, so global, and and it's uh, it's it's not corporate like you might resorts resorts in the US, which are phenomenal, by the way, it's just a little bit different.

That's just it's so international, so global, and and it's uh, it's it's not corporate like you might resorts resorts in the US, which are phenomenal, by the way, it's just a little bit different.

The difference there is you got Audrey Yupper, and if you say Laurent and Aspen, you've got a guy with the Kansas City cheese jacket, right exactly.

The difference there is you got Audrey Yupper, and if you say Laurent and Aspen, you've got a guy with the Kansas City cheese jacket, right exactly.

The final one go yes, because it's Friday. Martinis are having a moment. Okay, I'm shostingwhere shot. Okay, you're gonna pay more for it. Shot thirty dollars to one hundred and fifty dollars a glass. That's what they're going for places like New York. It's called loud luxury. So post a soft luxury, quiet luxury where you don't say this is like where you spend a lot and you own it and you say, I'm drinking a fifty dollars Martinia and you post it wherever you want to post it to. There's a place in Manhattan in case you want to go. Of course, it is forty five dollars a citrus martini at Illis. There's a thirty four dollars martini at Monkey Bar in Manhattan. So those are some places you can go to. It's Friday.

The final one go yes, because it's Friday. Martinis are having a moment. Okay, I'm shostingwhere shot. Okay, you're gonna pay more for it. Shot thirty dollars to one hundred and fifty dollars a glass. That's what they're going for places like New York. It's called loud luxury. So post a soft luxury, quiet luxury where you don't say this is like where you spend a lot and you own it and you say, I'm drinking a fifty dollars Martinia and you post it wherever you want to post it to. There's a place in Manhattan in case you want to go. Of course, it is forty five dollars a citrus martini at Illis. There's a thirty four dollars martini at Monkey Bar in Manhattan. So those are some places you can go to. It's Friday.

I'm shocked.

I'm shocked.

I'm no happy.

I'm no happy.

I shot at tequila at the Monkey Bar, No over in fifty whatever. You sit there at the bar and they got a black and white TV up in the right of Phil Silvers from like nineteen fifty five playing, and you know you'll there'll be like some nurse there and you'll go, could I please buy you a shot at tequila? And the shot is like an old fashioned glass at the Monkey that costs three five dollars too as well. So that's what we're that's what we're doing with the martinis, right, Yes.

I shot at tequila at the Monkey Bar, No over in fifty whatever. You sit there at the bar and they got a black and white TV up in the right of Phil Silvers from like nineteen fifty five playing, and you know you'll there'll be like some nurse there and you'll go, could I please buy you a shot at tequila? And the shot is like an old fashioned glass at the Monkey that costs three five dollars too as well. So that's what we're that's what we're doing with the martinis, right, Yes.

Very expensive truffle infused vodka serve in a specialty tray with olives in there in case you want.

Very expensive truffle infused vodka serve in a specialty tray with olives in there in case you want.

Now, that's a nice time. They do that at the Hotel Chelsea they have the multiple they're beneath that, but not much. They're really actually exquisite. What I would say, and this is the basic thing I am interested with what you two think. I hate when they fill the martini to the brim, so sad you spill it. Yes, it's so needless. Don't everyone out there when you're pouring a beverage this weekend don't fill it to the brim now, I mean, that's a messy pro tip. That was brilliant. Can you do that series? On Monday, I go over from forty dollar Martinez, Lisa Mateo, thank you so much. This is the Bloomberg Surveillance Podcast, bringing you the best in economics, finance, investment, and international relations. You can also watch the show live on YouTube. Visit the Bloomberg Podcast channel on YouTube to see the show weekday mornings from seven to ten am Eastern from our global headquarters in New York City. Subscribe to the podcast on Apple, Spotify, or anywhere else you listen, and always on Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business app.

Now, that's a nice time. They do that at the Hotel Chelsea they have the multiple they're beneath that, but not much. They're really actually exquisite. What I would say, and this is the basic thing I am interested with what you two think. I hate when they fill the martini to the brim, so sad you spill it. Yes, it's so needless. Don't everyone out there when you're pouring a beverage this weekend don't fill it to the brim now, I mean, that's a messy pro tip. That was brilliant. Can you do that series? On Monday, I go over from forty dollar Martinez, Lisa Mateo, thank you so much. This is the Bloomberg Surveillance Podcast, bringing you the best in economics, finance, investment, and international relations. You can also watch the show live on YouTube. Visit the Bloomberg Podcast channel on YouTube to see the show weekday mornings from seven to ten am Eastern from our global headquarters in New York City. Subscribe to the podcast on Apple, Spotify, or anywhere else you listen, and always on Bloomberg Radio, the Bloomberg Terminal, and the Bloomberg Business app.