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You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on applecar Play and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just say Alexa Play Bloomberg eleven thirty.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on applecar Play and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station, Just say Alexa Play Bloomberg eleven thirty.

Well, Stock's climbing after the latest economic data show the economy is holding up while still leaving the door open for the Fed to cut rates a few times this year. Bonds a little change though on this data. Let's get to the story with Ira Jersey, Bloomberg Intelligence Chief US Interest rates strategists. He joins us from Princeton, New Jersey. This PCE data that we got Ira largely in line with expectations. Does it change any of the moves from the Federal Reserve come September and later this year?

Well, Stock's climbing after the latest economic data show the economy is holding up while still leaving the door open for the Fed to cut rates a few times this year. Bonds a little change though on this data. Let's get to the story with Ira Jersey, Bloomberg Intelligence Chief US Interest rates strategists. He joins us from Princeton, New Jersey. This PCE data that we got Ira largely in line with expectations. Does it change any of the moves from the Federal Reserve come September and later this year?

Well, I think it doesn't take fifty basis points off the table.

Well, I think it doesn't take fifty basis points off the table.

But I think just given the.

But I think just given the.

You know, whole mosaic of the data that this report gives us between income spending as well as the you know, two and a half is percent core PC and headline PC numbers on a year on year basis that it makes it. I think a fifty basis point cut as an initial cut a little bit less likely, particularly when you look at some of the spending data, because the spending data is suggesting that the consumer is still willing to spend. And you look at some of the sectors and I was just actually taking a look at services and durable goods and the like, and durable goods sales really plummeted last year, but those have come back and are still growing in around a four percent year on year growth rate. So you know, the consumer is still holding up the economy right now. And unless that changes meaningfully, I suspect that the Federal Reserve will will move cautiously, but I do expect that they'll that they'll cut interest rates, but maybe not one hundred basis points this year, maybe seventy five, which again isn't a massive change. But I think that this data, you know, points to a, you know, the soft landing being more probable than it was before we saw it.

You know, whole mosaic of the data that this report gives us between income spending as well as the you know, two and a half is percent core PC and headline PC numbers on a year on year basis that it makes it. I think a fifty basis point cut as an initial cut a little bit less likely, particularly when you look at some of the spending data, because the spending data is suggesting that the consumer is still willing to spend. And you look at some of the sectors and I was just actually taking a look at services and durable goods and the like, and durable goods sales really plummeted last year, but those have come back and are still growing in around a four percent year on year growth rate. So you know, the consumer is still holding up the economy right now. And unless that changes meaningfully, I suspect that the Federal Reserve will will move cautiously, but I do expect that they'll that they'll cut interest rates, but maybe not one hundred basis points this year, maybe seventy five, which again isn't a massive change. But I think that this data, you know, points to a, you know, the soft landing being more probable than it was before we saw it.

All right, I'm aways curious about in terms of Fed policy, twenty five basis points versus fifty Is it better to kind of spoon feed slowly when you're shifting in cycle. When monetary cycle is shifting, is it better for markets, investors, and the economy or is it better to kind of give it a jolt like fifty.

All right, I'm aways curious about in terms of Fed policy, twenty five basis points versus fifty Is it better to kind of spoon feed slowly when you're shifting in cycle. When monetary cycle is shifting, is it better for markets, investors, and the economy or is it better to kind of give it a jolt like fifty.

Well, typically, you know, the Federal Reserve is cutting interest rates during some kind of crisis or massive downturn, or when there's some kind of exogynous shock that occurs to that that might make the economy really slip into recession very quickly. That is not this situation, right, So this is different than most other cycles that we've seen over the past forty years. And because of that, I think there's some people who say, oh, well, they'll cut fifty because they're behind the curve when you look at some data. But then you look at the data that we saw today from July, right, which is a first read on how third quarter GDP and the likeer shaping up, and it was decent. That not spectacular or anything, certainly not like it was a year or eighteen months ago, but definitely definitely a decent number. So so Carol, to your point, I think, you know, them going slow to start, and then if the economy does slow down more significantly, they can cut more.

Well, typically, you know, the Federal Reserve is cutting interest rates during some kind of crisis or massive downturn, or when there's some kind of exogynous shock that occurs to that that might make the economy really slip into recession very quickly. That is not this situation, right, So this is different than most other cycles that we've seen over the past forty years. And because of that, I think there's some people who say, oh, well, they'll cut fifty because they're behind the curve when you look at some data. But then you look at the data that we saw today from July, right, which is a first read on how third quarter GDP and the likeer shaping up, and it was decent. That not spectacular or anything, certainly not like it was a year or eighteen months ago, but definitely definitely a decent number. So so Carol, to your point, I think, you know, them going slow to start, and then if the economy does slow down more significantly, they can cut more.

Later.

Later.

I think that they'll be more cautious than not. And that's one of the ways that I differ from some of our colleagues over at Bloomberg Economics.

I think that they'll be more cautious than not. And that's one of the ways that I differ from some of our colleagues over at Bloomberg Economics.

But nonetheless, like the Federal Reserve is an easing mode.

But nonetheless, like the Federal Reserve is an easing mode.

They're going to be easing inflation at two and a half percent. Core inflation at two and a half percent is close enough to their target that I think that they're comfortable, you know, to start easing monetary policy now.

They're going to be easing inflation at two and a half percent. Core inflation at two and a half percent is close enough to their target that I think that they're comfortable, you know, to start easing monetary policy now.

Well, just in the last eleven minutes, we got consumer sentiment data. It showed that it improved in August for the first time in five months. Slower inflation and prospects for the Fed interest rate cuts helped lift expectations about personal finances. IRA consumers expect prices are going to climb at an annual rate of two point eight percent over the next year, down from two point nine percent expected last month and the lowest since the end of twenty twenty. The data out Friday showed again good news for the Fed.

Well, just in the last eleven minutes, we got consumer sentiment data. It showed that it improved in August for the first time in five months. Slower inflation and prospects for the Fed interest rate cuts helped lift expectations about personal finances. IRA consumers expect prices are going to climb at an annual rate of two point eight percent over the next year, down from two point nine percent expected last month and the lowest since the end of twenty twenty. The data out Friday showed again good news for the Fed.

Yeah, so certainly, you know, the Federal Reserve looks at expectations for inflation for as part of the as part of its analysis of what it needs to do with monetary policy, and certainly consumer expectations, like the Michigan Inflation Expectations.

Yeah, so certainly, you know, the Federal Reserve looks at expectations for inflation for as part of the as part of its analysis of what it needs to do with monetary policy, and certainly consumer expectations, like the Michigan Inflation Expectations.

Component is one of those, along with along with the market.

Component is one of those, along with along with the market.

Now, yeah, you know when you look at the Tips market and we put out we put out a note about this last week, looking at the Tips market and what it's been pricing, and you know, it's pricing basically two percent inflation for the next decade.

Now, yeah, you know when you look at the Tips market and we put out we put out a note about this last week, looking at the Tips market and what it's been pricing, and you know, it's pricing basically two percent inflation for the next decade.

Now, tips haven't been.

Now, tips haven't been.

The greatest of indicators of and of where inflation is going to go.

The greatest of indicators of and of where inflation is going to go.

And in fact, if you.

And in fact, if you.

Had actually bought tips and tips break even so the inflation rate that the market expects back in twenty twenty one, when inflation started to go up, you would have made a killing because the inflation was meaningfully higher than what the market was pricing. But nonetheless, like at this point, you know, most inflation indicators forward inflation indicators are moderating somewhat. And because of that, I think it's another reason why the FED isn't concerned about a reacceleration of inflation at this point.

Had actually bought tips and tips break even so the inflation rate that the market expects back in twenty twenty one, when inflation started to go up, you would have made a killing because the inflation was meaningfully higher than what the market was pricing. But nonetheless, like at this point, you know, most inflation indicators forward inflation indicators are moderating somewhat. And because of that, I think it's another reason why the FED isn't concerned about a reacceleration of inflation at this point.

All right, so check check. The Fed's got to fee pretty good about where inflation is. Dare I say goldilocks? But the one thing I am concerned about, and I know you watch it as well is the jobs market, and we get another read, of course the monthly report just about a week or so from now, or a week from now, I should say. Having said that, Tim and I have conversations with people saying that it's take that they're finding it's harder for people to find jobs, or they're getting a lot more job applications. Just twenty thirty seconds. Can Should we be a little worried about the job market real quickly?

All right, so check check. The Fed's got to fee pretty good about where inflation is. Dare I say goldilocks? But the one thing I am concerned about, and I know you watch it as well is the jobs market, and we get another read, of course the monthly report just about a week or so from now, or a week from now, I should say. Having said that, Tim and I have conversations with people saying that it's take that they're finding it's harder for people to find jobs, or they're getting a lot more job applications. Just twenty thirty seconds. Can Should we be a little worried about the job market real quickly?

Yeah? I think so, And certainly the Fed has pivoted that way.

Yeah? I think so, And certainly the Fed has pivoted that way.

Jay Powell was absolutely unequivocal about that last week.

Jay Powell was absolutely unequivocal about that last week.

You know, a year ago we were only worried about inflation.

You know, a year ago we were only worried about inflation.

Now the dual mandate is back in play, so any weakness in the job market will make the Fed Reserve worried that the economy slipping in therefore will cut interest rates.

Now the dual mandate is back in play, so any weakness in the job market will make the Fed Reserve worried that the economy slipping in therefore will cut interest rates.

All right, Ira, thank you so much. Bloomberg Intelligence, Chief US interest rates strategist Ira Jersey joining us from Princeton, New Jersey.

All right, Ira, thank you so much. Bloomberg Intelligence, Chief US interest rates strategist Ira Jersey joining us from Princeton, New Jersey.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on Affle Card playing then broud Otto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch US live on YouTube.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on Affle Card playing then broud Otto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch US live on YouTube.

All right, back to Intel we go. We mentioned it, we talked about it with Carmen Rynegy. What's going on with the stock. It's up more than seven percent in today's session. It's a top gainer in the S and P and the Nasdaq one hundred. So let's talk about the news that really we thought it was gonna be a sleepy Friday, not even close. So with us is Ryan Gouldi's Bloomberg deal's reporter on Intel weighing a bunch of options, so Bloomberg exclusive. Kudos to you guys. So talk a little bit more about what they're considering and what this means. Is this good thing, bad thing, or we still don't.

All right, back to Intel we go. We mentioned it, we talked about it with Carmen Rynegy. What's going on with the stock. It's up more than seven percent in today's session. It's a top gainer in the S and P and the Nasdaq one hundred. So let's talk about the news that really we thought it was gonna be a sleepy Friday, not even close. So with us is Ryan Gouldi's Bloomberg deal's reporter on Intel weighing a bunch of options, so Bloomberg exclusive. Kudos to you guys. So talk a little bit more about what they're considering and what this means. Is this good thing, bad thing, or we still don't.

Know, Carol, I think it's the biggest story in tech right now. I think if you look across the board and you've seen the reaction today with the stock, I think Intel's obviously our semiconductors in general arep I think Broadcom was almost up four percent. This is a name that is being closely watched. There was there's been some commentary, you know, and as we've been speaking to sources around this idea that Intel is too big to fail, you know, getting back to you know, what happened in our way. This is kind of like this is almost getting to that territory. This is a big name for sort of national security almost but the United States, Intel itself accounts for forty one percent of US three hundred milimeter away for production. So you know, this is a name that you know, really is meaning we.

Know, Carol, I think it's the biggest story in tech right now. I think if you look across the board and you've seen the reaction today with the stock, I think Intel's obviously our semiconductors in general arep I think Broadcom was almost up four percent. This is a name that is being closely watched. There was there's been some commentary, you know, and as we've been speaking to sources around this idea that Intel is too big to fail, you know, getting back to you know, what happened in our way. This is kind of like this is almost getting to that territory. This is a big name for sort of national security almost but the United States, Intel itself accounts for forty one percent of US three hundred milimeter away for production. So you know, this is a name that you know, really is meaning we.

Need Intel to be a healthy company, and we need a domestic, massive semi company.

Need Intel to be a healthy company, and we need a domestic, massive semi company.

Indeed, indeed, and I think that is that's what's at the top of all of this. And so the pressure on on Gelsinger is enormous.

Indeed, indeed, and I think that is that's what's at the top of all of this. And so the pressure on on Gelsinger is enormous.

But it's a lot less massive than it's been in the past at this point, especially after this year's stock decline. So Ryan, let's talk a little bit about what the options are from and again, the bank is working with the companies, working with banks like Morgan Stanley and Goldman Sachs. What are the options that these banks are laying out for the company.

But it's a lot less massive than it's been in the past at this point, especially after this year's stock decline. So Ryan, let's talk a little bit about what the options are from and again, the bank is working with the companies, working with banks like Morgan Stanley and Goldman Sachs. What are the options that these banks are laying out for the company.

Yeah, And I think just at the top, I think it's it's it's good for us to note that Goldman and Morgan Stanley have been Intel's advisors for a long time. They took the company, you know, they've been around. They've been around the block, they know, they know a lot.

Yeah, And I think just at the top, I think it's it's it's good for us to note that Goldman and Morgan Stanley have been Intel's advisors for a long time. They took the company, you know, they've been around. They've been around the block, they know, they know a lot.

Long relationship know the company.

Long relationship know the company.

Yeah, exactly, And I think some of the things that they're talking about with Gelsinger on the board would include things such as a split of Foundry and the product design unit.

Yeah, exactly, And I think some of the things that they're talking about with Gelsinger on the board would include things such as a split of Foundry and the product design unit.

That's a hue that would be meaning separate companies.

That's a hue that would be meaning separate companies.

A separation. Yeah, so going run it could be it could end up being a spin off.

A separation. Yeah, so going run it could be it could end up being a spin off.

Why is that a good idea?

Why is that a good idea?

I think because I think you know, Intel has found the scene pressure in recent weeks and months around this idea that the turnaround, the costs required for the turnaround in and around manufacturing itself of the actual chips is costly. One fab that they're taking money four tickets with twenty billion dollars to build.

I think because I think you know, Intel has found the scene pressure in recent weeks and months around this idea that the turnaround, the costs required for the turnaround in and around manufacturing itself of the actual chips is costly. One fab that they're taking money four tickets with twenty billion dollars to build.

I gotta tell you, I'm just you know, you say too big to fail in the context of companies that we've talked about recently. Boeing is a company that has been talked about as being too big to fail. Instead of spinning off, they're consolidating bring back Spirit Aerosystems, a company they spun off twenty something years ago. It just seems like would these moves fundamentally change the fate of Intel or are they Is it financial engineering?

I gotta tell you, I'm just you know, you say too big to fail in the context of companies that we've talked about recently. Boeing is a company that has been talked about as being too big to fail. Instead of spinning off, they're consolidating bring back Spirit Aerosystems, a company they spun off twenty something years ago. It just seems like would these moves fundamentally change the fate of Intel or are they Is it financial engineering?

I think it would because you'd essentially be looking at with a split of foundry, you'd essentially be looking at the company that's only focused on the product design, which i e. The chips that it might you might find an Adel computer or in Lenovo computer.

I think it would because you'd essentially be looking at with a split of foundry, you'd essentially be looking at the company that's only focused on the product design, which i e. The chips that it might you might find an Adel computer or in Lenovo computer.

So they wanted to be more like a TSMC right making chips.

So they wanted to be more like a TSMC right making chips.

That was key to Gelsinger's view is that they wanted to rival TSMC. That so far, investors on convinced Intel is still the only customer of Intel's boundary business right, which you know, the challenge so far has been how can we get chips out the door at at fast enough rate? But other customers that aren't us.

That was key to Gelsinger's view is that they wanted to rival TSMC. That so far, investors on convinced Intel is still the only customer of Intel's boundary business right, which you know, the challenge so far has been how can we get chips out the door at at fast enough rate? But other customers that aren't us.

So if they do that, what's left in terms of Intel their secret sauce or their chips that they are making. You know, it's interesting in a week where we focus so much on Nvidia, is that enough of a business? Is that a better business? I understand it'll be more of a pure play all the costs of building up foundry thirty seconds here? Is that enough of a bit?

So if they do that, what's left in terms of Intel their secret sauce or their chips that they are making. You know, it's interesting in a week where we focus so much on Nvidia, is that enough of a business? Is that a better business? I understand it'll be more of a pure play all the costs of building up foundry thirty seconds here? Is that enough of a bit?

It is because you'd essentially be looking at something that you know, where they've lost ground to the likes of AMD and around GPUs and CPUs. They could focus more time on the data cent to serve a type area well investors.

It is because you'd essentially be looking at something that you know, where they've lost ground to the likes of AMD and around GPUs and CPUs. They could focus more time on the data cent to serve a type area well investors.

That's huge investors are buying in today. Intel shares are up about seven percent as we speak, but let's not talk about where they are here today, because they're down a lot. Ryan Gould, thank you so much. Deal's reporter. Bloomberg News a Bloomberg exclusive. Read all the deals. Just head to Bloomberg dot com or check it out on the Bloomberg terminal.

That's huge investors are buying in today. Intel shares are up about seven percent as we speak, but let's not talk about where they are here today, because they're down a lot. Ryan Gould, thank you so much. Deal's reporter. Bloomberg News a Bloomberg exclusive. Read all the deals. Just head to Bloomberg dot com or check it out on the Bloomberg terminal.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on Applecarplay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa play Bloomberg eleven thirty.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on Applecarplay and Android Auto with the Bloomberg Business app. You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa play Bloomberg eleven thirty.

All right, we'll talk a little bit more about what's going on in the markets. Fed expectations, because it does feel like the inflation report, the preferred inflation gauge of the US Central Bank, you know, coming in we're still seeing consumers spending, inflation cooling. It does feel like Jay Pal's got to feel pretty good going into this Labor Day, weekend.

All right, we'll talk a little bit more about what's going on in the markets. Fed expectations, because it does feel like the inflation report, the preferred inflation gauge of the US Central Bank, you know, coming in we're still seeing consumers spending, inflation cooling. It does feel like Jay Pal's got to feel pretty good going into this Labor Day, weekend.

Somebody who watches this stuff so closely, the macro and the micro's Ben Emmons, founder and chief investment officer at fed Watch Advisors. He joins us from Washington, DC. Ben, I think you write more than some journalists. I know, how much of your day do you spend writing?

Somebody who watches this stuff so closely, the macro and the micro's Ben Emmons, founder and chief investment officer at fed Watch Advisors. He joins us from Washington, DC. Ben, I think you write more than some journalists. I know, how much of your day do you spend writing?

I think probably a good eighty percent of my day on that. It's just like I'm addicted writer. I think, you know, I listened to you and Carol and John and other people, and that actually is always a really good inspiration for writing. Obviously checking numbers and markets and yeah, it's just enjoyed doing it. So it's always focused on analysis, right, It's always focused on trying to come up with another angle to this story like what we're looking at now at PCEE, and try to drill in and trying to come up with with practical ideas about it and then obviously extrapolating that to what I do now. I've decided to do the set of mown firm and really focus on FET watching and making that more like an investment firm around FET watching and apply that writing. And as the last point there, I want to say this, you know, as you know, I used to work for Bill gross A Binco for for many years. He taught me. Actually this he did that himself through This is one of the most prolific writers too. Tell you write out your thoughts. Is that gives you really the sort of your say, compass to navigate these markets.

I think probably a good eighty percent of my day on that. It's just like I'm addicted writer. I think, you know, I listened to you and Carol and John and other people, and that actually is always a really good inspiration for writing. Obviously checking numbers and markets and yeah, it's just enjoyed doing it. So it's always focused on analysis, right, It's always focused on trying to come up with another angle to this story like what we're looking at now at PCEE, and try to drill in and trying to come up with with practical ideas about it and then obviously extrapolating that to what I do now. I've decided to do the set of mown firm and really focus on FET watching and making that more like an investment firm around FET watching and apply that writing. And as the last point there, I want to say this, you know, as you know, I used to work for Bill gross A Binco for for many years. He taught me. Actually this he did that himself through This is one of the most prolific writers too. Tell you write out your thoughts. Is that gives you really the sort of your say, compass to navigate these markets.

I do think that there's something really healthy and also, like we joke about putting your phone down or you know, sitting and writing something and just walking away from the day to day barrage or minute by minute barrage of headlines and statistics to try and just kind of think about where we are in a sane way.

I do think that there's something really healthy and also, like we joke about putting your phone down or you know, sitting and writing something and just walking away from the day to day barrage or minute by minute barrage of headlines and statistics to try and just kind of think about where we are in a sane way.

Well, Ben, there's a synthesis that happens when you sit down to write about something. I learned this in high school. I think one of my teachers said, you don't really know something unless you can explain it or you can write about it. Ben, And that's what that's what you do with your notes, and that's certainly why I appreciate getting them pretty much every day. Just to give you an idea of the types of notes that that Ben's written. Recently, he's written about the data center surge. He's written about Nvidia's economic impact and I know he's listening to our show because he forwarded me the Nvidia Economic impact note after we were talking about in Nvidia's economic impact on our program a couple of days ago, the uncertainty when it comes to IPO's reflation when it comes to shipping, and of course everything happening last week at Jackson Hole.

Well, Ben, there's a synthesis that happens when you sit down to write about something. I learned this in high school. I think one of my teachers said, you don't really know something unless you can explain it or you can write about it. Ben, And that's what that's what you do with your notes, and that's certainly why I appreciate getting them pretty much every day. Just to give you an idea of the types of notes that that Ben's written. Recently, he's written about the data center surge. He's written about Nvidia's economic impact and I know he's listening to our show because he forwarded me the Nvidia Economic impact note after we were talking about in Nvidia's economic impact on our program a couple of days ago, the uncertainty when it comes to IPO's reflation when it comes to shipping, and of course everything happening last week at Jackson Hole.

Yeah, exactly. So let's start with Nvidia because it has been We even kick off our weekend show saying, listen, folks, there was one story pretty much this week, and that was Nvidia's earnings. How do you extrapolate that out not only to what it means for Nvidia specifically, but the AI race, the AAI build out, and what it maybe says more broadly about CAPEX spending and I don't know, and what it means for financial markets when that big, you know, tech trade means so much.

Yeah, exactly. So let's start with Nvidia because it has been We even kick off our weekend show saying, listen, folks, there was one story pretty much this week, and that was Nvidia's earnings. How do you extrapolate that out not only to what it means for Nvidia specifically, but the AI race, the AAI build out, and what it maybe says more broadly about CAPEX spending and I don't know, and what it means for financial markets when that big, you know, tech trade means so much.

That's right, Carol.

That's right, Carol.

I think that you know, the Wall Street Journal and a nice graph and that's showing all his TEX spending projection of it. And it's all based on the video, Lily, on expectations on how the video will perform from here, because they have the monopoly on those GPUs and chips and Blackwell and all the things that they that they create, and yet as they create those those chips, as we now know, there's on the on the ground all these data centers being set up across the country. And that was one of the graphs I put in the note of those bubbles out there, and that's not just a data center that I guess I haven't. I want to visit one of those, actually because it's kind of interesting, new new concept. But there's a lot of people that start working there. There's a lot of surfaces that happen around these data centers. So the VIDIA has become a major macroeconomic force in my view, where you could talk about the stock and the multiple and earnings projections and all those things that and everybody in the bronment had and was very excited about that. But me as a as an economist fabwatch, I think of it, this is a company that's become very powerful for the economy that if its performance were to change and the expectations about is growth changes, that it could have an impact on the economy in itself. It's like Boeing with its impact on the supply chain, and people have calculated that it's worked up to half a percent of GDP. I think in the video it could be actually more more impactful level.

I think that you know, the Wall Street Journal and a nice graph and that's showing all his TEX spending projection of it. And it's all based on the video, Lily, on expectations on how the video will perform from here, because they have the monopoly on those GPUs and chips and Blackwell and all the things that they that they create, and yet as they create those those chips, as we now know, there's on the on the ground all these data centers being set up across the country. And that was one of the graphs I put in the note of those bubbles out there, and that's not just a data center that I guess I haven't. I want to visit one of those, actually because it's kind of interesting, new new concept. But there's a lot of people that start working there. There's a lot of surfaces that happen around these data centers. So the VIDIA has become a major macroeconomic force in my view, where you could talk about the stock and the multiple and earnings projections and all those things that and everybody in the bronment had and was very excited about that. But me as a as an economist fabwatch, I think of it, this is a company that's become very powerful for the economy that if its performance were to change and the expectations about is growth changes, that it could have an impact on the economy in itself. It's like Boeing with its impact on the supply chain, and people have calculated that it's worked up to half a percent of GDP. I think in the video it could be actually more more impactful level.

I think about that those data centers that are the big build out right, and do we all of a sudden, maybe in a year or two, are they not actually operating? Are they a little quiet because maybe the reality doesn't live up to the expectation. So so that's certainly top of mind. The other thing is we gotta talk, we gotta talk politics.

I think about that those data centers that are the big build out right, and do we all of a sudden, maybe in a year or two, are they not actually operating? Are they a little quiet because maybe the reality doesn't live up to the expectation. So so that's certainly top of mind. The other thing is we gotta talk, we gotta talk politics.

Yeah, you know, I don't. I don't see a recent note Ben that you have about this. You had something about Harris a couple of weeks ago.

Yeah, you know, I don't. I don't see a recent note Ben that you have about this. You had something about Harris a couple of weeks ago.

It's coming.

It's coming.

Okay, Well here's what here's what I want to let's get a little preview from you on this because Bloomberg News Morning Console poll came out late yesterday shows that uh Kamala Harris has sustained the burst of momentum she brought to the presidential contest. She's leading or tied with Donald Trump in each of the seven swing states most likely to decide the race. How do you think about economic policies under a president Harris versus the President Trump.

Okay, Well here's what here's what I want to let's get a little preview from you on this because Bloomberg News Morning Console poll came out late yesterday shows that uh Kamala Harris has sustained the burst of momentum she brought to the presidential contest. She's leading or tied with Donald Trump in each of the seven swing states most likely to decide the race. How do you think about economic policies under a president Harris versus the President Trump.

Yeah, the first thing you think of is that, Okay, she just extends what we've been doing so far with Biden. And yes, the Infrastructure Act in the Chips Act will not be disrupted, right, which is I think back to the Navideo story an important aspect because they have been slow down in some of these chips activities recently, meaning there's a lot of semiconductor investment that's happening in the States, but some of these projects have been put off. The Financial Times report on that, so that's key. I think we go from an economic policy point of view.

Yeah, the first thing you think of is that, Okay, she just extends what we've been doing so far with Biden. And yes, the Infrastructure Act in the Chips Act will not be disrupted, right, which is I think back to the Navideo story an important aspect because they have been slow down in some of these chips activities recently, meaning there's a lot of semiconductor investment that's happening in the States, but some of these projects have been put off. The Financial Times report on that, so that's key. I think we go from an economic policy point of view.

Then of course everybody looks at the Federal Reserve.

Then of course everybody looks at the Federal Reserve.

And it's independence. You will not rail against that. I think for the broad markets that probably matters not as much. It's more about then further down, about how are you going to go after people with higher taxes?

And it's independence. You will not rail against that. I think for the broad markets that probably matters not as much. It's more about then further down, about how are you going to go after people with higher taxes?

Right?

Right?

Are you really going to increase capital gains taxes and wealth taxes and that sort of discussion. And I think lastly it's really about her own agenda in terms of like how she's shaping it. We're getting some contours of it. She does seem to be in favor of fracking, for example, which matters to energy supply, and you know she is going to address the border, which could you know, affect immigration flows, right, So I think, if you think all those things, her agenda is extension of Buyden, but it is her own agenda. But the most important thing for me at least is I think that if there's no disruption in what the Infrastructure Act and chips actually doing to the economy, that will matter a lot, because that's really been a big drive I think for economic performances of the past year.

Are you really going to increase capital gains taxes and wealth taxes and that sort of discussion. And I think lastly it's really about her own agenda in terms of like how she's shaping it. We're getting some contours of it. She does seem to be in favor of fracking, for example, which matters to energy supply, and you know she is going to address the border, which could you know, affect immigration flows, right, So I think, if you think all those things, her agenda is extension of Buyden, but it is her own agenda. But the most important thing for me at least is I think that if there's no disruption in what the Infrastructure Act and chips actually doing to the economy, that will matter a lot, because that's really been a big drive I think for economic performances of the past year.

Listen, I think about tim the conversation we had on Bloomberg Business Week with the Windham Hotels CEO, who said some of their development, especially for extended stay hotels, was specifically tied to some of the congressional spending plans that have come from the Body administration. In other words, whether it's infrastructure or so and so forth, that places are building out, companies are building out throughout the nation.

Listen, I think about tim the conversation we had on Bloomberg Business Week with the Windham Hotels CEO, who said some of their development, especially for extended stay hotels, was specifically tied to some of the congressional spending plans that have come from the Body administration. In other words, whether it's infrastructure or so and so forth, that places are building out, companies are building out throughout the nation.

Texas joined us from Frisco Texas. Yeah, you're talking about Geff Bilotti, who was on with us last week or the week before, right, So what.

Texas joined us from Frisco Texas. Yeah, you're talking about Geff Bilotti, who was on with us last week or the week before, right, So what.

You say in terms of these plans, whether it's data centers, AI, whether it's climate change, renewable energy, these spending plans are certainly key in terms of economic growth and keeping kind of the engine going. Having said that What is the one political policy, whether it's Donald Trump or Kamala Harris in the White House come November that you think is going to be very important to keeping the economy in a good place here in the US And just have about forty seconds.

You say in terms of these plans, whether it's data centers, AI, whether it's climate change, renewable energy, these spending plans are certainly key in terms of economic growth and keeping kind of the engine going. Having said that What is the one political policy, whether it's Donald Trump or Kamala Harris in the White House come November that you think is going to be very important to keeping the economy in a good place here in the US And just have about forty seconds.

Yeah, it would be the debt seating negotiation and how fiscal policy will be shaped into twenty twenty five, because remember that that's the negotiation. Last year had a one percent secretation attached as part of the negotiation. Will that secrestration, which is a spending gap, will that be like what we experienced a twenty eleven twelve, like a larger one, because that if that's the case, that would have a significant impact on the economy. Doesn't seem that that's the case, right, that both want to spend more. But that is a really important aspect I think of as we go to the election. How will fiscal policy play the role in Nicoli?

Yeah, it would be the debt seating negotiation and how fiscal policy will be shaped into twenty twenty five, because remember that that's the negotiation. Last year had a one percent secretation attached as part of the negotiation. Will that secrestration, which is a spending gap, will that be like what we experienced a twenty eleven twelve, like a larger one, because that if that's the case, that would have a significant impact on the economy. Doesn't seem that that's the case, right, that both want to spend more. But that is a really important aspect I think of as we go to the election. How will fiscal policy play the role in Nicoli?

Yeah, and as we know increasingly from Gas it is an important one. We've talked about it in the past, but it's a much more in terms of the deficit and so on, it's going to be potentially more problematic. Ben Emmons, thank you so much. Keep the notes coming. Founder and chief investment officer at fed Watch Advisors. Joining us from Washington, d C.

Yeah, and as we know increasingly from Gas it is an important one. We've talked about it in the past, but it's a much more in terms of the deficit and so on, it's going to be potentially more problematic. Ben Emmons, thank you so much. Keep the notes coming. Founder and chief investment officer at fed Watch Advisors. Joining us from Washington, d C.

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Kaylee lyons she's balanced a power co host. She's joining us from Washington, DC. Kaylee, We've been dying to talk to you since I saw these numbers come out late yesterday after our show got off the air. Kamala Harris sustaining the burst of momentum she brought to the presidential contest. She's leading or tied with Republican Donald Trump and each of the seven states most likely to decide the race. New numbers from Bloomberg News and Morning Consul give us the lay of the land and how this latest data change the next few months.

Kaylee lyons she's balanced a power co host. She's joining us from Washington, DC. Kaylee, We've been dying to talk to you since I saw these numbers come out late yesterday after our show got off the air. Kamala Harris sustaining the burst of momentum she brought to the presidential contest. She's leading or tied with Republican Donald Trump and each of the seven states most likely to decide the race. New numbers from Bloomberg News and Morning Consul give us the lay of the land and how this latest data change the next few months.

Well, really, what the data illustrates Tim is that the map for Kamala Harris, basically the number of states she could potentially win in order to secure the two hundred and seventy Electoral College votes she needs to clinch the presidency, is significantly wider than it was for Joe Biden. And these figures do confirm that, as you said, in six of the seven, she is leading Donald Trump. In fact, while a lot of these are within the margin of error, in Wisconsin, one of the key battleground states part of the so called Blue Wall, she's up by eight points. And even in states where we almost were no longer even considering them swing states like North Carolina because Donald Trump's lead has been so significant, she is now up on Trump in North Carolina by two points. She's also up by two in Georgia. She's up by four in Pennsylvania and Nevada, and three in Michigan. So by and large, this does show that while this race remains incredibly close, she does have potentially more chances. And that also means that it's more areas in which Donald Trump and the RNC are going to have to dedicate resources and spend time campaigning in areas that they once thought were givens for them much safer may not have had to invest as much time and energy they now may be forced to do so.

Well, really, what the data illustrates Tim is that the map for Kamala Harris, basically the number of states she could potentially win in order to secure the two hundred and seventy Electoral College votes she needs to clinch the presidency, is significantly wider than it was for Joe Biden. And these figures do confirm that, as you said, in six of the seven, she is leading Donald Trump. In fact, while a lot of these are within the margin of error, in Wisconsin, one of the key battleground states part of the so called Blue Wall, she's up by eight points. And even in states where we almost were no longer even considering them swing states like North Carolina because Donald Trump's lead has been so significant, she is now up on Trump in North Carolina by two points. She's also up by two in Georgia. She's up by four in Pennsylvania and Nevada, and three in Michigan. So by and large, this does show that while this race remains incredibly close, she does have potentially more chances. And that also means that it's more areas in which Donald Trump and the RNC are going to have to dedicate resources and spend time campaigning in areas that they once thought were givens for them much safer may not have had to invest as much time and energy they now may be forced to do so.

So help me out here, Kelly, as the days you know, I feel like the days are numbered now as we count down to the November you know, actual voting, although we know people can vote earlier. Having said that, polls, how much do they bounce around, especially as you get closer and closer to election day.

So help me out here, Kelly, as the days you know, I feel like the days are numbered now as we count down to the November you know, actual voting, although we know people can vote earlier. Having said that, polls, how much do they bounce around, especially as you get closer and closer to election day.

Yeah, a lot of strategists will tell you, Carol, that you shouldn't really look at any polls before Labor Day. However, the campaign is much more aggressive pre Labor Day this year than we have seen in the past, just given the truncated nature of the Harris Walls ticket here. Of course, they only became the ticket just recently, and she's only been in this race as a presidential candidate, not vice presidential one, for about six weeks. So we will look to see how things morph, especially after the debate on September tenth. That is going to be potentially a critical pivotal moment in this campaign when we see Donald Trump and Kamala Harris sharing the stage, and of course we'll expect to hear more sit down interviews, frankly from the both of them. Kamala Harris, of course, did her first last night on CNN. Interestingly, she said on day one of her presidency in that interview, the thing she wants to focus most on is the middle class, And in this poll across the swing states, it actually finds that swing state voters give Harris the advantage on who they trust more to help the middle class by a margin of seven points. It's interesting to see her performing better on some of these economic questions than Joe Biden.

Yeah, a lot of strategists will tell you, Carol, that you shouldn't really look at any polls before Labor Day. However, the campaign is much more aggressive pre Labor Day this year than we have seen in the past, just given the truncated nature of the Harris Walls ticket here. Of course, they only became the ticket just recently, and she's only been in this race as a presidential candidate, not vice presidential one, for about six weeks. So we will look to see how things morph, especially after the debate on September tenth. That is going to be potentially a critical pivotal moment in this campaign when we see Donald Trump and Kamala Harris sharing the stage, and of course we'll expect to hear more sit down interviews, frankly from the both of them. Kamala Harris, of course, did her first last night on CNN. Interestingly, she said on day one of her presidency in that interview, the thing she wants to focus most on is the middle class, And in this poll across the swing states, it actually finds that swing state voters give Harris the advantage on who they trust more to help the middle class by a margin of seven points. It's interesting to see her performing better on some of these economic questions than Joe Biden.

Was do you feel like though I felt like it was to some extent a repeat of some of the main issues or main things she brought up in her speech at the DNC. And I do feel like we want more specificity, although I'm not quite sure we're going to get it, because that can get you into problems. More specific you get the devil is always in the details.

Was do you feel like though I felt like it was to some extent a repeat of some of the main issues or main things she brought up in her speech at the DNC. And I do feel like we want more specificity, although I'm not quite sure we're going to get it, because that can get you into problems. More specific you get the devil is always in the details.

Yeah, that's exactly right, Carol. Clearly US journalists and our audience here on Bloomberg Radio probably wants the policy specifics, right, What are the exact payforce for some of the things she's suggesting, like twenty five thousand dollars down payment assistance to first time home buyers. And we didn't really get that last night. It kind of still was these broad ideas of wanting to help the middle class and create an opportunity economy, and she didn't also shy away from a lot of the work that has been done in the Biden administration when it comes to the economy, things like the Inflation Reduction Act and the Infrastructure Bill, that kind of thing. But I think what was one of the more interesting points of the interview was she was questioned on some of the policy areas in which she is flip flopped, like a ban on fracking. She made it very clear last night that she would not seek such a ban as president, even though she said she was in favor of it when she was running in the Democratic primary back in twenty nineteen. And her explanation for that, as well as some pivots and policy she's made when it comes to the border, is that her values remain the same even if her policy ideas have started to change, and the values argument will wait have to wait and see if voters really by Republicans don't really seem to be doing so.

Yeah, that's exactly right, Carol. Clearly US journalists and our audience here on Bloomberg Radio probably wants the policy specifics, right, What are the exact payforce for some of the things she's suggesting, like twenty five thousand dollars down payment assistance to first time home buyers. And we didn't really get that last night. It kind of still was these broad ideas of wanting to help the middle class and create an opportunity economy, and she didn't also shy away from a lot of the work that has been done in the Biden administration when it comes to the economy, things like the Inflation Reduction Act and the Infrastructure Bill, that kind of thing. But I think what was one of the more interesting points of the interview was she was questioned on some of the policy areas in which she is flip flopped, like a ban on fracking. She made it very clear last night that she would not seek such a ban as president, even though she said she was in favor of it when she was running in the Democratic primary back in twenty nineteen. And her explanation for that, as well as some pivots and policy she's made when it comes to the border, is that her values remain the same even if her policy ideas have started to change, and the values argument will wait have to wait and see if voters really by Republicans don't really seem to be doing so.

I also wonder to what extent, you know, the flip flopping, so called flip flopping matters and the context of her opponent, who has been on several sides of both sides of several issues too, So I don't know to what extent that matters to voters, especially given you know it was five years ago.

I also wonder to what extent, you know, the flip flopping, so called flip flopping matters and the context of her opponent, who has been on several sides of both sides of several issues too, So I don't know to what extent that matters to voters, especially given you know it was five years ago.

In some points, I have to say one thing, right, and I think everybody's been highlighting as new. I watched it all and I did thought it was very earnest and honest. When she said, yeah, I'd be up for having a Republican in my candidate, Like if you embrace diversity, which she does, she's.

In some points, I have to say one thing, right, and I think everybody's been highlighting as new. I watched it all and I did thought it was very earnest and honest. When she said, yeah, I'd be up for having a Republican in my candidate, Like if you embrace diversity, which she does, she's.

Going along when did it, Obama did it?

Going along when did it, Obama did it?

Yeah, I think it's smart or yeah, And I know we're not supposed to weigh in on it, but we as an organization embrace diversity. So it's interesting to see her come out and.

Yeah, I think it's smart or yeah, And I know we're not supposed to weigh in on it, but we as an organization embrace diversity. So it's interesting to see her come out and.

Say that, yeah, for sure. And I would point out at the at the DNC rather in Chicago, where I was last week, even though it already feels like it was months ago, there were a number of Republicans who spoke on the stage, Adam Kingsner, the former Congressman, Jeff Duncan, who was the lieutenant governor of Georgia, who are of course not pro Trump Republicans. They're in fact very anti Trump, but they were they are at the Democratic National Convention. It'll be interesting to see if it's those types of individuals she's thinking about potentially's cabinet potential candidates for a cabinet position. She of course didn't name names.

Say that, yeah, for sure. And I would point out at the at the DNC rather in Chicago, where I was last week, even though it already feels like it was months ago, there were a number of Republicans who spoke on the stage, Adam Kingsner, the former Congressman, Jeff Duncan, who was the lieutenant governor of Georgia, who are of course not pro Trump Republicans. They're in fact very anti Trump, but they were they are at the Democratic National Convention. It'll be interesting to see if it's those types of individuals she's thinking about potentially's cabinet potential candidates for a cabinet position. She of course didn't name names.

He Kaylee, we only have like ten seconds left for this. But now that we got an interview with Harris on CNN and Tim Walls as well, are we going to start to see them do more media?

He Kaylee, we only have like ten seconds left for this. But now that we got an interview with Harris on CNN and Tim Walls as well, are we going to start to see them do more media?

Yeah, we can expect that in probably doing them solo Tim rather than join interviews like we saw last night.

Yeah, we can expect that in probably doing them solo Tim rather than join interviews like we saw last night.

Although I thought Tim, you know, it was like it was interesting to see the two of them. I'm waiting for the sixty minutes interview like begem or the Bloomberg interview.

Although I thought Tim, you know, it was like it was interesting to see the two of them. I'm waiting for the sixty minutes interview like begem or the Bloomberg interview.

Come.

Come.

That's right y, all right, Kelly Lines, thank you so much, Really appreciate Balance of Power co host joining us there in DC.

That's right y, all right, Kelly Lines, thank you so much, Really appreciate Balance of Power co host joining us there in DC.

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at ten am Eastern on applecar Play and Android Auto with the Bloomberg Business Act. You can also listen live on Amazon Alexa from our flagship New York station Just Say Alexa, playing Bloomberg eleven thirty.

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Dell shares her hire. The company did report better than expected revenue due to an increase in the sales of servers built for handling AI workloads. We got with us. Wujin Hoo Bloomberg Intelligence senior tech analyst. He's here joining us from Princeton, New Jersey. Woujin, give us the high level and then we're gonna get to the various notes that you wrote about Dell post earnings. Give us the high level recap of what we heard from the last night.

Dell shares her hire. The company did report better than expected revenue due to an increase in the sales of servers built for handling AI workloads. We got with us. Wujin Hoo Bloomberg Intelligence senior tech analyst. He's here joining us from Princeton, New Jersey. Woujin, give us the high level and then we're gonna get to the various notes that you wrote about Dell post earnings. Give us the high level recap of what we heard from the last night.

Sure, so the big lead into the print was AI server margins or ISG margins in general, and the beat there was eleven percent ISG margins. Last quarter they did about eight percent. From a revenue basis, there was a four percent revenue beat principally driven by AI servers. They did about three point one billion dollars in AI server revenues, and I think the consensus was around two point four billion, so that's where the upside was. There were some, you know, negatives, The PC market isn't going as well as one at hope, but it seems just that the street is overlooking got a little bit. But all in all, AI is doing fairly well for Dell.

Sure, so the big lead into the print was AI server margins or ISG margins in general, and the beat there was eleven percent ISG margins. Last quarter they did about eight percent. From a revenue basis, there was a four percent revenue beat principally driven by AI servers. They did about three point one billion dollars in AI server revenues, and I think the consensus was around two point four billion, so that's where the upside was. There were some, you know, negatives, The PC market isn't going as well as one at hope, but it seems just that the street is overlooking got a little bit. But all in all, AI is doing fairly well for Dell.

Uh Wujin, you mentioned PCs, AI PCs.

Uh Wujin, you mentioned PCs, AI PCs.

You know this.

You know this.

We spoke to John Rose earlier this week, and also can I just say we got some great questions Mark Bloomberg Intelligence team ahead of that interview for John.

We spoke to John Rose earlier this week, and also can I just say we got some great questions Mark Bloomberg Intelligence team ahead of that interview for John.

Oh yeah, yeah, and he's right in the thick of it.

Oh yeah, yeah, and he's right in the thick of it.

He's right in the thick of it. One thing that we asked about Wujin was about AI p cs. Is this something that there there's promise in that we're going to be using PCs that are equipped for AI or is this stuff going to be on our phones? Like is Dell is del right in thinking that there's gonna be a big market for a I p cs.

He's right in the thick of it. One thing that we asked about Wujin was about AI p cs. Is this something that there there's promise in that we're going to be using PCs that are equipped for AI or is this stuff going to be on our phones? Like is Dell is del right in thinking that there's gonna be a big market for a I p cs.

Well, I don't think there's going to be a choice uh Tim primarily because uh Intel a m D they're all making uh AI PC chips and Dell HP, Lenovo, whoever the PC o em is, they're going to put put them in their PCs. Now, are they going to charge a premium? A slight right, but you know, like it or not, we are going to have an AIPC. The question, the better question is are there going to be apps that's going to help support the power of the aipcs? And that that's that's the one hundred thousand dollars question that I have right now. The big uptake is probably going to be more on twenty twenty five as a driver a calendar twenty twenty five as a driver, then on twenty twenty four.

Well, I don't think there's going to be a choice uh Tim primarily because uh Intel a m D they're all making uh AI PC chips and Dell HP, Lenovo, whoever the PC o em is, they're going to put put them in their PCs. Now, are they going to charge a premium? A slight right, but you know, like it or not, we are going to have an AIPC. The question, the better question is are there going to be apps that's going to help support the power of the aipcs? And that that's that's the one hundred thousand dollars question that I have right now. The big uptake is probably going to be more on twenty twenty five as a driver a calendar twenty twenty five as a driver, then on twenty twenty four.

That's right, Yeah, because I keep thinking, why do I need an AIPC or will I need it for work?

That's right, Yeah, because I keep thinking, why do I need an AIPC or will I need it for work?

Oh? Carol, you will need it for work. Just imagine the amount of time that you spend on your emails just to catch up on emails. Imagine if you once you open up your PC, it'll create a dossie of all the things that you need to do, all the questions that you need to have ahead of all of your interviews, right all on a single page.

Oh? Carol, you will need it for work. Just imagine the amount of time that you spend on your emails just to catch up on emails. Imagine if you once you open up your PC, it'll create a dossie of all the things that you need to do, all the questions that you need to have ahead of all of your interviews, right all on a single page.

I guess on Saturday and Tuesday when I'm back.

I guess on Saturday and Tuesday when I'm back.

Let's let well, well, AIPC could probably expedite that. But let's see what Microsoft does or any other Will it help them focus?

Let's let well, well, AIPC could probably expedite that. But let's see what Microsoft does or any other Will it help them focus?

What are you saying?

What are you saying?

Focused?

Focused?

Productivity? It's all about productivity.

Productivity? It's all about productivity.

But so that's practical. Like Tim and I kind of joke about it, but we do think bright would be great to have something just write some of our introductions or yeah, suggest some questions. When will it be reliable though that we can trust it. I'm a little nut about the source of things, and you know, making sure it's accurate, accurate, you are accurate with that.

But so that's practical. Like Tim and I kind of joke about it, but we do think bright would be great to have something just write some of our introductions or yeah, suggest some questions. When will it be reliable though that we can trust it. I'm a little nut about the source of things, and you know, making sure it's accurate, accurate, you are accurate with that.

Silly still still unclear where we're when we'll get there, But given how powerful these large language models have become, I do think that it'll be relatively soon, maybe maybe mid twenty back half of twenty five and twenty six will start seeing a proliferation of applications to help support the IPC movement.

Silly still still unclear where we're when we'll get there, But given how powerful these large language models have become, I do think that it'll be relatively soon, maybe maybe mid twenty back half of twenty five and twenty six will start seeing a proliferation of applications to help support the IPC movement.

What's going to be the learning curve on that?

What's going to be the learning curve on that?

Wou jin should be fairly quick, right, It's it's almost like a search. Let's just say, but once we learned uh, the uh, the AAPC language prompts or the Copilot language prompts. You know, I wouldn't be surprised if it if the lyric curves fail easy.

Wou jin should be fairly quick, right, It's it's almost like a search. Let's just say, but once we learned uh, the uh, the AAPC language prompts or the Copilot language prompts. You know, I wouldn't be surprised if it if the lyric curves fail easy.

You keep making making references to Microsoft. Is Microsoft going to be the big beneficiary of developments with this AI hardware.

You keep making making references to Microsoft. Is Microsoft going to be the big beneficiary of developments with this AI hardware.

Well, they're already in there, right. If you think about what Microsoft has done with Copilot and integrating with their Office Suite, you know they've made a bit push. And keep in mind they have a big investment in Open AI to to help support that.

Well, they're already in there, right. If you think about what Microsoft has done with Copilot and integrating with their Office Suite, you know they've made a bit push. And keep in mind they have a big investment in Open AI to to help support that.

Right.

Right.

You know, sometimes I think about billion dollars.

You know, sometimes I think about billion dollars.

Yeah, Dell's history and just it's pretty remarkable. I mean, this tucks up almost fifty fifty five zero year to date. It just feels like it has, I don't know, reinvented itself. About question, it's remarkable.

Yeah, Dell's history and just it's pretty remarkable. I mean, this tucks up almost fifty fifty five zero year to date. It just feels like it has, I don't know, reinvented itself. About question, it's remarkable.

We tryed to someone around my age, so you talk to him about Dell and they're they're you know, they associated with that ad campa that was out like when I was in junior high. Like, dude, you're getting a Dell right.

We tryed to someone around my age, so you talk to him about Dell and they're they're you know, they associated with that ad campa that was out like when I was in junior high. Like, dude, you're getting a Dell right.

One of the competitor.

One of the competitor.

It could have had the fate of Gateway. Let's just say that like Gateway and Dell were the big players woo jen you know, twenty yep, thirty years ago.

It could have had the fate of Gateway. Let's just say that like Gateway and Dell were the big players woo jen you know, twenty yep, thirty years ago.

And look, Mike, Michael Dell has done a fantastic job in reshaping the company from a PC maker to a general enterprise or corporate IT maker, and now it's reventing itself as an AI server maker. Now keep in mind, if you think about all the AI server makers in the world, there's only super Micro was probably leading the pack. But if you look at the AI server revenues that Dell has, it went for one point five billion dollars last calendar year and it's on track to do about ten billion dollars in AI server sales in this calendar year.

And look, Mike, Michael Dell has done a fantastic job in reshaping the company from a PC maker to a general enterprise or corporate IT maker, and now it's reventing itself as an AI server maker. Now keep in mind, if you think about all the AI server makers in the world, there's only super Micro was probably leading the pack. But if you look at the AI server revenues that Dell has, it went for one point five billion dollars last calendar year and it's on track to do about ten billion dollars in AI server sales in this calendar year.

So super micros was do we have to be worried about Dell at all because of that? And just got about twenty five seconds.

So super micros was do we have to be worried about Dell at all because of that? And just got about twenty five seconds.

Yeah, quick recap from a financial standpoint, No, the earnings report kind of helps us out there. Super Micro's margins were down on a sequential basis, but Dell's margins were up, and that kind of swept beside those concerns.

Yeah, quick recap from a financial standpoint, No, the earnings report kind of helps us out there. Super Micro's margins were down on a sequential basis, but Dell's margins were up, and that kind of swept beside those concerns.

All right, cool stuff, as always, listen, Thank you so much. I always love checking in with you, Bujin, have a great weekend, Bujin hoo. He's Bloomberg Intelligence Senior Technology Alice joining us, Joining us excuse me from BI headquarters in Princeton, New Jersey.

All right, cool stuff, as always, listen, Thank you so much. I always love checking in with you, Bujin, have a great weekend, Bujin hoo. He's Bloomberg Intelligence Senior Technology Alice joining us, Joining us excuse me from BI headquarters in Princeton, New Jersey.

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So let's talk a little bit about the labor market.

So let's talk a little bit about the labor market.

Yeah, the US labor market is expected to grow by four tenths of a percent a year through twenty thirty three. It's less than one third of the pace in the preceding decade. That's according to new projections from the Bureau of Labor Statistics numbers. It translates to six point seven million additional jobs over the decade, or about fifty five thousand a month, the BLS set in a report published on a Thursday. For more, Let's get to Robin Erics and vice president of Human Capital. Over at the conference board. Robin joins us from Chicago.

Yeah, the US labor market is expected to grow by four tenths of a percent a year through twenty thirty three. It's less than one third of the pace in the preceding decade. That's according to new projections from the Bureau of Labor Statistics numbers. It translates to six point seven million additional jobs over the decade, or about fifty five thousand a month, the BLS set in a report published on a Thursday. For more, Let's get to Robin Erics and vice president of Human Capital. Over at the conference board. Robin joins us from Chicago.

How are you, Robin.

How are you, Robin.

I'm terrific. Thank you, Tim, It's great to be here.

I'm terrific. Thank you, Tim, It's great to be here.

Well, thanks for joining us. Fifty five thousand jobs a month. That is a far cry from the several hundred thousand jobs a month that we've been accustomed to over the last couple of years. Do you expect it to moderate as much as the BLS thinks it will.

Well, thanks for joining us. Fifty five thousand jobs a month. That is a far cry from the several hundred thousand jobs a month that we've been accustomed to over the last couple of years. Do you expect it to moderate as much as the BLS thinks it will.

I do, because I think that the advances in AI are going to change the jobs that we have. If you think about the jobs in nineteen twenty, one hundred years ago, thirty to forty percent of the US workforce was in farming and thirty percent of the workforce was in manufacturing. Today, only one to two percent are in farming and eight to ten percent in manufacturing. Well eighty percent are in services, so I think it's a good thing. But I do think that organizations have to be thinking about reskilling their employees.

I do, because I think that the advances in AI are going to change the jobs that we have. If you think about the jobs in nineteen twenty, one hundred years ago, thirty to forty percent of the US workforce was in farming and thirty percent of the workforce was in manufacturing. Today, only one to two percent are in farming and eight to ten percent in manufacturing. Well eighty percent are in services, so I think it's a good thing. But I do think that organizations have to be thinking about reskilling their employees.

So some jobs go away, and then is there an equal amount of new jobs that are created that reskilling can help Those people who lose their jobs because of AI can now fail. Are they going to be completely different?

So some jobs go away, and then is there an equal amount of new jobs that are created that reskilling can help Those people who lose their jobs because of AI can now fail. Are they going to be completely different?

Okay?

Okay?

Yeah, I think I think the jobs will be different, and I think that we have to think about jobs differently, just like if you were living one hundred years ago, you'd have to think about jobs differently if you were transported to twenty twenty four.

Yeah, I think I think the jobs will be different, and I think that we have to think about jobs differently, just like if you were living one hundred years ago, you'd have to think about jobs differently if you were transported to twenty twenty four.

So how ugly though or uncomfortable is that labor transition going to be? So I understand you could do reskilling and get people to fill some of those newer jobs that are now needed, but sometimes I don't know, like how uncomfortable might that be, especially if you're with somebody who loses the job.

So how ugly though or uncomfortable is that labor transition going to be? So I understand you could do reskilling and get people to fill some of those newer jobs that are now needed, but sometimes I don't know, like how uncomfortable might that be, especially if you're with somebody who loses the job.

It is painful. And one of the things that we found is that only right now twenty one percent of US organizations are thinking about reskilling jobs. So it takes a while to do that, and so we definitely think that organizations should be doing more of that now. But part of The challenge right now is just making sure that everyone it has some AI literacy, and so that's another area that we suggest organizations focus on.

It is painful. And one of the things that we found is that only right now twenty one percent of US organizations are thinking about reskilling jobs. So it takes a while to do that, and so we definitely think that organizations should be doing more of that now. But part of The challenge right now is just making sure that everyone it has some AI literacy, and so that's another area that we suggest organizations focus on.

Robin, does this mean we're going to work less in a few years, like a four day work week? Steve Cohen is.

Robin, does this mean we're going to work less in a few years, like a four day work week? Steve Cohen is.

Investing in would you work any less? Wow?

Investing in would you work any less? Wow?

John Tucker is so rude. You know I'm working double duty today.

John Tucker is so rude. You know I'm working double duty today.

John, Exactly. That's that's that's tough.

John, Exactly. That's that's that's tough.

World's smallest violin comes out.

World's smallest violin comes out.

Okay, all right, enough from you.

Okay, all right, enough from you.

Can we turn his mic off? Yeah, Robin, I'm more interested in what Robin has to say about this, truly, though. The reason I ask is because Steve Cohen and co are investing in golf, because they argue that, you know, we are going to be working less and playing more golf.

Can we turn his mic off? Yeah, Robin, I'm more interested in what Robin has to say about this, truly, though. The reason I ask is because Steve Cohen and co are investing in golf, because they argue that, you know, we are going to be working less and playing more golf.