This is Bloomberg Wall Street Week, and we may not have an overall recession, We're having a rolling recession. To kind of roll looks pretty strongly it is when it comes to jobs. The financial stories that shape our word. Three major regional bank failures send shockwaves through the banking system. We're all trying to figure out what to make of generative AI through the eyes of the most influential voices. Welcome down, Doctor Paul Krugman, Ryan moynihan, a Bank of America, Debro Lair of the Paulson Institute, Len Hubbard of the Columbia Business School. Bloomberg Wall Street Week with David Weston from Bloomberg Radio. This Week contributor Larry Summers of Harvard on how the FED is handling a stronger than expected economy.

This is Bloomberg Wall Street Week, and we may not have an overall recession, We're having a rolling recession. To kind of roll looks pretty strongly it is when it comes to jobs. The financial stories that shape our word. Three major regional bank failures send shockwaves through the banking system. We're all trying to figure out what to make of generative AI through the eyes of the most influential voices. Welcome down, Doctor Paul Krugman, Ryan moynihan, a Bank of America, Debro Lair of the Paulson Institute, Len Hubbard of the Columbia Business School. Bloomberg Wall Street Week with David Weston from Bloomberg Radio. This Week contributor Larry Summers of Harvard on how the FED is handling a stronger than expected economy.

Still think the FAT is considerably too optimistic.

Still think the FAT is considerably too optimistic.

Stephen Rattner of Wild Advisors on a car industry at a crossroads.

Stephen Rattner of Wild Advisors on a car industry at a crossroads.

For the Detroit companies to be winners in ev they need help from the union.

For the Detroit companies to be winners in ev they need help from the union.

And jose Maniyah of Neuvene on investment ideas. You may not have thought of that.

And jose Maniyah of Neuvene on investment ideas. You may not have thought of that.

Narrative, which was one that was largely academic around alternatives and how do you get a better portfolio that are correlated assets. Today it's not an academic discussion, it's an urgency.

Narrative, which was one that was largely academic around alternatives and how do you get a better portfolio that are correlated assets. Today it's not an academic discussion, it's an urgency.

This week, Global Wall Street watched as people tried to get started, or at least back on track around the world. President Biden went to the United Nations to send China message that there's still room for cooperation.

This week, Global Wall Street watched as people tried to get started, or at least back on track around the world. President Biden went to the United Nations to send China message that there's still room for cooperation.

I want to be clear and consistent. We seek to responsibly manage the competition between our countries. We are for d risky, not decoupling the child. We will push back on aggression and intimidation and defend the rules of the road.

I want to be clear and consistent. We seek to responsibly manage the competition between our countries. We are for d risky, not decoupling the child. We will push back on aggression and intimidation and defend the rules of the road.

Good Chair J.

Good Chair J.

Powell steps the podium to get everyone to believe in that soft landing.

Powell steps the podium to get everyone to believe in that soft landing.

After all, soft landing is a primary objective, and I did not say otherwise.

After all, soft landing is a primary objective, and I did not say otherwise.

That's what we've been trying to achieve for all this time.

That's what we've been trying to achieve for all this time.

The public offering market took another step forward with an instant cart finally going on sale on the NASDAK.

The public offering market took another step forward with an instant cart finally going on sale on the NASDAK.

We have the shares of instacart trading hire by thirty nine percent right now, so we're looking at evaluation that is closer to fourteen.

We have the shares of instacart trading hire by thirty nine percent right now, so we're looking at evaluation that is closer to fourteen.

Billion, Quickly followed by eMarketer Klavio, Well, the.

Billion, Quickly followed by eMarketer Klavio, Well, the.

Way we think about it is that part of being a public company is showing the world you know how you run your business and saying that you're going to be.

Way we think about it is that part of being a public company is showing the world you know how you run your business and saying that you're going to be.

There for a long time.

There for a long time.

The auto industry tried to get going again, leading to the UAW expanding its strike to additional plants. At the end of the week, we will.

The auto industry tried to get going again, leading to the UAW expanding its strike to additional plants. At the end of the week, we will.

Be striking thirty eight locations across twenty states across all nine regions of the UAW.

Be striking thirty eight locations across twenty states across all nine regions of the UAW.

The equity markets reacted to all of this, and particularly what came out of the fad by selling off, with the S and P five hundred having its worst week since March, down two point nine three percent for the week to forty three twenty eight. That is, falling below the median year end forecast of our Bloomberg Els that's forty four to thirty five, while the Nasdaq took an even bigger head, dropping just over three point six percent. The yield on the tenure added almost ten full basis points, ending the week at forty four point four to three one seven after spiking above four point five early in the day on Friday. Here to help us sort it all out, our Peter Crass, chair and founder of Aperture Investors and Sarah Hetter, CEO and co founder of Cosway Capital. Welcome back to both of you. Peter' always start with you what is going on in the market. So I didn't think what the Fed had to say was that radically different from what we've heard before. But boy, the market shore reacted this time.

The equity markets reacted to all of this, and particularly what came out of the fad by selling off, with the S and P five hundred having its worst week since March, down two point nine three percent for the week to forty three twenty eight. That is, falling below the median year end forecast of our Bloomberg Els that's forty four to thirty five, while the Nasdaq took an even bigger head, dropping just over three point six percent. The yield on the tenure added almost ten full basis points, ending the week at forty four point four to three one seven after spiking above four point five early in the day on Friday. Here to help us sort it all out, our Peter Crass, chair and founder of Aperture Investors and Sarah Hetter, CEO and co founder of Cosway Capital. Welcome back to both of you. Peter' always start with you what is going on in the market. So I didn't think what the Fed had to say was that radically different from what we've heard before. But boy, the market shore reacted this time.

We look in the short run, what the markets are reacting to is their expectation of where interest rates are going to be in twenty four. Investors believed that the Fed was going to be able to engineer a soft landing, which Pale again reiterated he was trying to do. But investors believe that in twenty four interest rates would begin to be cut, and the FED has been a little bit more hawkish on that. The Fed has said, well, there's probably another rate increase this year. And if you look at the dot, which is the explanation of the committee's estimation of where rates are going to be, those dots moved up and that's what unsettled them are.

We look in the short run, what the markets are reacting to is their expectation of where interest rates are going to be in twenty four. Investors believed that the Fed was going to be able to engineer a soft landing, which Pale again reiterated he was trying to do. But investors believe that in twenty four interest rates would begin to be cut, and the FED has been a little bit more hawkish on that. The Fed has said, well, there's probably another rate increase this year. And if you look at the dot, which is the explanation of the committee's estimation of where rates are going to be, those dots moved up and that's what unsettled them are.

Market.

Market.

Now, that's a very short term activity, but the market reacted significantly to that, Sir.

Now, that's a very short term activity, but the market reacted significantly to that, Sir.

At the same time, the FED, I thought said, boy, the economy, if anything, looks stronger than we thought it would before. Is that good news or bad news? I mean, if it's stronger than we thought, does that mean actually the FED will have to keep pushing on the interest rates, which could lead to something breaking likely.

At the same time, the FED, I thought said, boy, the economy, if anything, looks stronger than we thought it would before. Is that good news or bad news? I mean, if it's stronger than we thought, does that mean actually the FED will have to keep pushing on the interest rates, which could lead to something breaking likely.

It appears that Fed might have underestimated how insensitive US market is to rise communists to rising rates. There's many corporates, for example, have turned out they're dead, So longer duration dead, its fixed rate creates a level of insulation to what the Fed is doing. So there may be less sensitivity, but ultimately, as rates remain higher for longer, this will catch up with those who have borrowed too much or where assets prices are falling. Thinking particular about parts of the real estate sector, Peter.

It appears that Fed might have underestimated how insensitive US market is to rise communists to rising rates. There's many corporates, for example, have turned out they're dead, So longer duration dead, its fixed rate creates a level of insulation to what the Fed is doing. So there may be less sensitivity, but ultimately, as rates remain higher for longer, this will catch up with those who have borrowed too much or where assets prices are falling. Thinking particular about parts of the real estate sector, Peter.

What about the real estate sectors? We don't want anything to break, but it's a decided possibility. I think it's fair to say, is that what we should be looking on.

What about the real estate sectors? We don't want anything to break, but it's a decided possibility. I think it's fair to say, is that what we should be looking on.

So the real estate sector in the economy breaks into two pieces. There's the residential real estate business, which is very large and affects a lot of people, And to Sarah's point, is the part of the economy that is very rate insensitive today because most mortgages today are fixed rate, and they were fixed at low interest rates. So households today have a big, big benefit. They own a very long liability or effective we had asset to them at very low rates, which allows them to continue to spend and gives them positive operating leverage in their daily budgets. In the commercial space, however, that's totally different. In the commercial space, there you had buyers buying buildings at low cap rates and low interest rates which do need to be refinanced, and their sair again is absolutely correct. We are going to see refinancing that is going to cause problems in the.

So the real estate sector in the economy breaks into two pieces. There's the residential real estate business, which is very large and affects a lot of people, And to Sarah's point, is the part of the economy that is very rate insensitive today because most mortgages today are fixed rate, and they were fixed at low interest rates. So households today have a big, big benefit. They own a very long liability or effective we had asset to them at very low rates, which allows them to continue to spend and gives them positive operating leverage in their daily budgets. In the commercial space, however, that's totally different. In the commercial space, there you had buyers buying buildings at low cap rates and low interest rates which do need to be refinanced, and their sair again is absolutely correct. We are going to see refinancing that is going to cause problems in the.

Real estate business. We've already seen that.

Real estate business. We've already seen that.

We've seen significant owners in real estate of the last six months literally walk away from buildings, unusual just.

We've seen significant owners in real estate of the last six months literally walk away from buildings, unusual just.

Because at the time that bank credit is tightening too. So it's a it's a double whamming well and the SARTA.

Because at the time that bank credit is tightening too. So it's a it's a double whamming well and the SARTA.

Let me ask you, some people are not saying forget about the longer, for higher for longer. What if it's higher forever? I mean, what is this Basically there's a new normal, as it were. What does that do to investment proposition?

Let me ask you, some people are not saying forget about the longer, for higher for longer. What if it's higher forever? I mean, what is this Basically there's a new normal, as it were. What does that do to investment proposition?

Well, cycles don't normally work that way. Our expectations fall at causeway is that the FED will achieve its two percenter thereabouts level of inflation, but that will come at cost with importment, and as the US economy shifts downward and slows dramatically, that in turn will precipitate the FED easing. But that might not happen again for quite a lot. Couldn't be several more quarters, it could be here, it could be longer. It's very hard to say. But the longer rates remain high, it's like a slow asphyxiation for those that are overleveraged. And there's plenty of that across this economy. In fact, there's plenty of that globally.

Well, cycles don't normally work that way. Our expectations fall at causeway is that the FED will achieve its two percenter thereabouts level of inflation, but that will come at cost with importment, and as the US economy shifts downward and slows dramatically, that in turn will precipitate the FED easing. But that might not happen again for quite a lot. Couldn't be several more quarters, it could be here, it could be longer. It's very hard to say. But the longer rates remain high, it's like a slow asphyxiation for those that are overleveraged. And there's plenty of that across this economy. In fact, there's plenty of that globally.

It might be a slightly different outcome there. Certainly the FED is said they want to get to two percent, but I don't think the FED will consciously break the economy to get there. And it may be that we see inflation at three percent and then the term structure of interest rates may shift a bit and perhaps the ten uere isn't going to go down to three percent, it's going to be at five to six percent and cash is going to be at three to four percent. And that's not an unusual position for the term structure of rates to be. In fact, over the last seventy to eighty years was more likely that than not. And the economy can be just fined there and stocks could you just find there, And that I think is also a possibility.

It might be a slightly different outcome there. Certainly the FED is said they want to get to two percent, but I don't think the FED will consciously break the economy to get there. And it may be that we see inflation at three percent and then the term structure of interest rates may shift a bit and perhaps the ten uere isn't going to go down to three percent, it's going to be at five to six percent and cash is going to be at three to four percent. And that's not an unusual position for the term structure of rates to be. In fact, over the last seventy to eighty years was more likely that than not. And the economy can be just fined there and stocks could you just find there, And that I think is also a possibility.

Sometimes, Peter, I think we tend to focus on the FED and the economy like that's the only two players in the game. There's also a federal government that is spending a lot of money and borrowing a lot of money. What does that mean potentially for the rate structure.

Sometimes, Peter, I think we tend to focus on the FED and the economy like that's the only two players in the game. There's also a federal government that is spending a lot of money and borrowing a lot of money. What does that mean potentially for the rate structure.

Well, that's going to crowd out borrowers on the duration side, and so that is one That is another reason why tenure rates may not drop back to three percent or three and a half. The federal government is spending a lot of money. We have three big programs infrastructure, chips, and other spending programs in climate. So I think that that stimus is going to continue. That's going to make it hard for rates to come down. We could have a complete recession of bad recession, and then of course rates will come down and we will see low rates, but I don't think they'll stay there.

Well, that's going to crowd out borrowers on the duration side, and so that is one That is another reason why tenure rates may not drop back to three percent or three and a half. The federal government is spending a lot of money. We have three big programs infrastructure, chips, and other spending programs in climate. So I think that that stimus is going to continue. That's going to make it hard for rates to come down. We could have a complete recession of bad recession, and then of course rates will come down and we will see low rates, but I don't think they'll stay there.

There are also some other risks out there we're seeing right now in the marketplace. One of them is that big uaw strikeing actually got expanded some on Friday, at least against two of the big automakers. How big a risk is that for the markets? Do you think over the medium term? I won't even talk about longer term, but medium term.

There are also some other risks out there we're seeing right now in the marketplace. One of them is that big uaw strikeing actually got expanded some on Friday, at least against two of the big automakers. How big a risk is that for the markets? Do you think over the medium term? I won't even talk about longer term, but medium term.

The risk for inflation in the US and the reason why some of this comes from one of our favorite economists, Nancy Lazar. She noted that since twenty sixteen, auto industry productivity has been declining while auto industry and compensation has been rising, So that means labor costs in the auto industry have been increasing quite significantly. So without better productivity and having wage hikes, this is going to be really hard on auto industry and profitability, which is why this negotiation is so incredibly fierce. The thirty to our work week is definitely not an increase in productivity. So let's just say the UEF gets what they want or something close to that, then there's a cogningient effect because labor across the country the globallyses how we want that, and that just adds to to labor inflation, which is something that I think that that is very concerned about, given how tight and plant it is in this.

The risk for inflation in the US and the reason why some of this comes from one of our favorite economists, Nancy Lazar. She noted that since twenty sixteen, auto industry productivity has been declining while auto industry and compensation has been rising, So that means labor costs in the auto industry have been increasing quite significantly. So without better productivity and having wage hikes, this is going to be really hard on auto industry and profitability, which is why this negotiation is so incredibly fierce. The thirty to our work week is definitely not an increase in productivity. So let's just say the UEF gets what they want or something close to that, then there's a cogningient effect because labor across the country the globallyses how we want that, and that just adds to to labor inflation, which is something that I think that that is very concerned about, given how tight and plant it is in this.

Country and Peter.

Country and Peter.

We're focused on the auto industry, but it's broader than the utter industry. We've already always, already had the Writer's Guild. They're in talks again now they haven't settled it. We have the actors, we had ups, we had the ports, We've got others waiting in the wings right now. Is there the possibility of really a broader set of labor issues here that will increase wages rather substantially.

We're focused on the auto industry, but it's broader than the utter industry. We've already always, already had the Writer's Guild. They're in talks again now they haven't settled it. We have the actors, we had ups, we had the ports, We've got others waiting in the wings right now. Is there the possibility of really a broader set of labor issues here that will increase wages rather substantially.

I think we already have it.

I think we already have it.

I mean, the amount of union labor in the country we know is low.

I mean, the amount of union labor in the country we know is low.

It's certainly historically low.

It's certainly historically low.

Sarah's right about the demands of the UAW and what that may portend, at least for that codie of workers. But there's a large number of workers in the country that are not unionized. They are also demanding higher wages. And we also know that we've got a very tight labor market, which is frankly the real source of the issue. Unemployment still remains relatively low, it's not rising very much, and that means labor has a stronger leg at the bargaining table, and frankly they probably shouldn't because the last ten or fifteen years they haven't. So I think that the FED knows that the FED is why the FED is being tough on rates and why it's not talking about taking them down, and I think why it's going to be longer higher, for.

Sarah's right about the demands of the UAW and what that may portend, at least for that codie of workers. But there's a large number of workers in the country that are not unionized. They are also demanding higher wages. And we also know that we've got a very tight labor market, which is frankly the real source of the issue. Unemployment still remains relatively low, it's not rising very much, and that means labor has a stronger leg at the bargaining table, and frankly they probably shouldn't because the last ten or fifteen years they haven't. So I think that the FED knows that the FED is why the FED is being tough on rates and why it's not talking about taking them down, and I think why it's going to be longer higher, for.

Longer many Thanks to Sarah Ketterer of Causeway Capital and Peter Krauss of Aperture Investors. Coming up, the auto industry enters the second week of selective strikes hitting the Big three. We talk with where it all could end with former cars are Stephen Rattner of Willed Advisors.

Longer many Thanks to Sarah Ketterer of Causeway Capital and Peter Krauss of Aperture Investors. Coming up, the auto industry enters the second week of selective strikes hitting the Big three. We talk with where it all could end with former cars are Stephen Rattner of Willed Advisors.

The more the autoworkers get paid, and I'm in favor of them getting paid more, the fewer jobs they're going to be.

The more the autoworkers get paid, and I'm in favor of them getting paid more, the fewer jobs they're going to be.

That's next on Wall Street Week on Bloomberg. This is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. Automotive Breakdown. That's what's happened to Detroit with the auto workers into their second week of striking, selective GM Ford and stillants plants with no end in sight. President Biden has more or less cited with the UAW demand that the Big three share their record profits to make up for lost time.

That's next on Wall Street Week on Bloomberg. This is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. Automotive Breakdown. That's what's happened to Detroit with the auto workers into their second week of striking, selective GM Ford and stillants plants with no end in sight. President Biden has more or less cited with the UAW demand that the Big three share their record profits to make up for lost time.

Auto companies have seen record profits, including the last few years because of the extraordinary skill and sacrifices the UAW workers. Those record profits have not been shared fairly in my view, with those workers.

Auto companies have seen record profits, including the last few years because of the extraordinary skill and sacrifices the UAW workers. Those record profits have not been shared fairly in my view, with those workers.

While Republicans like former Vice President Mike Pence say President Biden has helped create the problem with his push for electric vehicles.

While Republicans like former Vice President Mike Pence say President Biden has helped create the problem with his push for electric vehicles.

What I'm hearing around the country is that that auto workers are very concerned about Joe Iden's Green New Deal heavy handed effort to use taxpayer dollars to drive these automotive companies into electric vehicle production. I meant, you've got one hundred and forty five thousand workers out there that have been many of them built a lifetime making gasoline powered.

What I'm hearing around the country is that that auto workers are very concerned about Joe Iden's Green New Deal heavy handed effort to use taxpayer dollars to drive these automotive companies into electric vehicle production. I meant, you've got one hundred and forty five thousand workers out there that have been many of them built a lifetime making gasoline powered.

Cars, and auto CEOs like GM's Mary Borrow say that whatever the politics, they need to invest all those profits so they can make the move into evs.

Cars, and auto CEOs like GM's Mary Borrow say that whatever the politics, they need to invest all those profits so they can make the move into evs.

We need to invest in our future, and we have a plan to take all of our employees along. I think this is very important. We have worked very carefully to have a job for everyone so we can make this transformation together. And frankly, when you put it up you have a strike and we're not making vehicles, you start to put that at risk.

We need to invest in our future, and we have a plan to take all of our employees along. I think this is very important. We have worked very carefully to have a job for everyone so we can make this transformation together. And frankly, when you put it up you have a strike and we're not making vehicles, you start to put that at risk.

Some investors, like Bruce Richards of Marathon Asset Management think the shift back from capital to labor can ultimately be good for us.

Some investors, like Bruce Richards of Marathon Asset Management think the shift back from capital to labor can ultimately be good for us.

All companies in the next few years are going to have a real issue because they're going to pay a lot higher labor calls. You see that with the UAW, you see that in Hollywood, you see that with what the pilots negotiate with the airlines. The labor costs are increasing, and we love to see labor costs increases.

All companies in the next few years are going to have a real issue because they're going to pay a lot higher labor calls. You see that with the UAW, you see that in Hollywood, you see that with what the pilots negotiate with the airlines. The labor costs are increasing, and we love to see labor costs increases.

It's good for America. It's good for Americans.

It's good for America. It's good for Americans.

But former Treasury Secretary Larry Summers warns that this may turn out to be a zero sum game where the union can't afford to lose and the auto companies can't afford for them to win, which could mean things will get worse before they get better.

But former Treasury Secretary Larry Summers warns that this may turn out to be a zero sum game where the union can't afford to lose and the auto companies can't afford for them to win, which could mean things will get worse before they get better.

I fear that there's a bit of an in game dynamic going on here, and in that situation, the incentives for the union, like the incentives at one stage for the coal miners, like the incentive one stage for the steel workers, are to get as absolute much as they can while they can.

I fear that there's a bit of an in game dynamic going on here, and in that situation, the incentives for the union, like the incentives at one stage for the coal miners, like the incentive one stage for the steel workers, are to get as absolute much as they can while they can.

And here to take us through the auto industry as we find it today is Stephen Rattner. He is the chairman and CEO of Willet Advisors, which invests the personal and film topic assets of Michael R. Bernblerg. He is our founder and majority share over. Steve, thanks so much for being back with us. You know a little bit about cars, goodness knows, given your service in the obamaministration putting the industry back together beforehand. Is there a way out of this impast right now? Because I sure don't see it.

And here to take us through the auto industry as we find it today is Stephen Rattner. He is the chairman and CEO of Willet Advisors, which invests the personal and film topic assets of Michael R. Bernblerg. He is our founder and majority share over. Steve, thanks so much for being back with us. You know a little bit about cars, goodness knows, given your service in the obamaministration putting the industry back together beforehand. Is there a way out of this impast right now? Because I sure don't see it.

Look, it does certainly look tougher than I've ever seen in any of these contract negotiations. First of all, the uaw's demands are, even by the standard of opening demands, pretty extreme. Secondly, they're conducting this negotiation largely in public, which makes it harder for the union in particular to back off their positions if and when they need to. But all that said, there's never been a strike that I know of that hasn't gotten resolved one way or another, and it's not hard to see a resolution here. But I think the mood is that it's going to take a good while.

Look, it does certainly look tougher than I've ever seen in any of these contract negotiations. First of all, the uaw's demands are, even by the standard of opening demands, pretty extreme. Secondly, they're conducting this negotiation largely in public, which makes it harder for the union in particular to back off their positions if and when they need to. But all that said, there's never been a strike that I know of that hasn't gotten resolved one way or another, and it's not hard to see a resolution here. But I think the mood is that it's going to take a good while.

You have written in the New York Times that you certainly can understand why there needs to be more wages for autoworkers. They've lagged behind for various reason. It's inflation, but also the contract that they had at the same time. It's about more than just money, is it not. Because the autoworkers say, you're going to electric vehicles will require fewer of us than the other side the auto industry stage, we have to go to electric vehicles or we're not going to be in business anymore.

You have written in the New York Times that you certainly can understand why there needs to be more wages for autoworkers. They've lagged behind for various reason. It's inflation, but also the contract that they had at the same time. It's about more than just money, is it not. Because the autoworkers say, you're going to electric vehicles will require fewer of us than the other side the auto industry stage, we have to go to electric vehicles or we're not going to be in business anymore.

The classic Harvard Business School case is that a company or an industry that tries to protect protect an old business model when there's a new one coming ends up failing. If the Detroit companies want to be competitive, if we as a country want to have a viable domestic auto industry, and by the way, it is the government's policy to encourage electric vehicles, then we have to welcome this change, and there will be displacements and we have to deal with those.

The classic Harvard Business School case is that a company or an industry that tries to protect protect an old business model when there's a new one coming ends up failing. If the Detroit companies want to be competitive, if we as a country want to have a viable domestic auto industry, and by the way, it is the government's policy to encourage electric vehicles, then we have to welcome this change, and there will be displacements and we have to deal with those.

I guess I'm asking how much of this do you think in the end is about money? How much of a raise people get because everyone agrees they're going to get a significant raise, and how much it is more fundamental things about the way the companies actually run their businesses.

I guess I'm asking how much of this do you think in the end is about money? How much of a raise people get because everyone agrees they're going to get a significant raise, and how much it is more fundamental things about the way the companies actually run their businesses.

I think it's mostly about money or money related things. I think, yes, there's a lot of concern about the future number of jobs, and so on and so forth. But I'm sympathetic to the union in the sense that if you look at the last fifteen years, auto workers as a whole in this country have basically stayed flat after inflation, whereas other workers have gotten some after inflation real income increases. And they are good reasons for good reasons. There are reasons for that, which is the fundamental competitiveness of the auto industry on a global scale. But nonetheless, in a world of three point eight percent unemployment and one and a half jobs for every American, I can understand why these workers feel like it's time for them to get a bigger share.

I think it's mostly about money or money related things. I think, yes, there's a lot of concern about the future number of jobs, and so on and so forth. But I'm sympathetic to the union in the sense that if you look at the last fifteen years, auto workers as a whole in this country have basically stayed flat after inflation, whereas other workers have gotten some after inflation real income increases. And they are good reasons for good reasons. There are reasons for that, which is the fundamental competitiveness of the auto industry on a global scale. But nonetheless, in a world of three point eight percent unemployment and one and a half jobs for every American, I can understand why these workers feel like it's time for them to get a bigger share.

Last week, President Biden weighed in on the issue, and at least to my hearing, weighed in pretty heavily on the UAW side, saying there have been record profits out of the car industries and there should be a record deal. I think he called it basically, is he making the situation better or worse? In the port situation. I don't recall him weighing in that heavily on the workers side.

Last week, President Biden weighed in on the issue, and at least to my hearing, weighed in pretty heavily on the UAW side, saying there have been record profits out of the car industries and there should be a record deal. I think he called it basically, is he making the situation better or worse? In the port situation. I don't recall him weighing in that heavily on the workers side.

I think that's fair. I think we are closer to an election. I think we're talking about the Midwest, which are swing states, I don't think California is ever going to be a swing state, but I have to say I don't think it's overly helpful for him to put his finger on the scale. Look, the politics are what they are, and I get that. But this is a tough situation, and I think there are equities on both sides.

I think that's fair. I think we are closer to an election. I think we're talking about the Midwest, which are swing states, I don't think California is ever going to be a swing state, but I have to say I don't think it's overly helpful for him to put his finger on the scale. Look, the politics are what they are, and I get that. But this is a tough situation, and I think there are equities on both sides.

Whenever we have a very large conflict like this, in my experience, at least, there are unintended consequences. There are the principal players and who does well who doesn't, But there are people are on the side. I can think of people like Tesla, other automakers around the world, certain states, they're right to work states. What are the unintended consequences you think perhaps of this dispute.

Whenever we have a very large conflict like this, in my experience, at least, there are unintended consequences. There are the principal players and who does well who doesn't, But there are people are on the side. I can think of people like Tesla, other automakers around the world, certain states, they're right to work states. What are the unintended consequences you think perhaps of this dispute.

Look, the unintended consequences are what happened is to the number of jobs, not the price paid for each job. The yin and the yang of this, and it's a tough one, is that the more the auto workers get paid, and I'm in favor of them getting paid more, the fewer jobs are going to be. That's just the inevitable result of this. If you look, for example, back since two thousand and nine, at the number of jobs that have moved to Mexico, and the fact that there are now more auto jobs in Mexico than there are in the United States. It tells you something about how capitalism and free enterprise works. It finds the lowest costs locale that can meet its needs.

Look, the unintended consequences are what happened is to the number of jobs, not the price paid for each job. The yin and the yang of this, and it's a tough one, is that the more the auto workers get paid, and I'm in favor of them getting paid more, the fewer jobs are going to be. That's just the inevitable result of this. If you look, for example, back since two thousand and nine, at the number of jobs that have moved to Mexico, and the fact that there are now more auto jobs in Mexico than there are in the United States. It tells you something about how capitalism and free enterprise works. It finds the lowest costs locale that can meet its needs.

What is this safe potential to investors like you making investments, not just in the auto industry, about whether you invest in audustry, but more broadly, it's in fact there is a shift back toward labor that's got to squeeze margins. It's a practical matter. Does that mean that the prospects for equities come down some if.

What is this safe potential to investors like you making investments, not just in the auto industry, about whether you invest in audustry, but more broadly, it's in fact there is a shift back toward labor that's got to squeeze margins. It's a practical matter. Does that mean that the prospects for equities come down some if.

All that happens? The answer is sure, I don't think we know yet. Yes, there are a lot of strikes and a lot of high would look like big pay packages coming through. But you also have an economy on the other side where companies have more pricing power and they used to. There's less competition, frankly, less anti trust enforcement, fewer unions in general, and so forth, and so profit margins companies have stayed surprisingly robust. Corporate profits are far higher right now than I think most people thought they would be at this point in a cycle. And so yeah, sure, corporate profits could get squeezed a bit. Maybe they should get squeezed a bit, But I don't think that's not what keeps me awake at night.

All that happens? The answer is sure, I don't think we know yet. Yes, there are a lot of strikes and a lot of high would look like big pay packages coming through. But you also have an economy on the other side where companies have more pricing power and they used to. There's less competition, frankly, less anti trust enforcement, fewer unions in general, and so forth, and so profit margins companies have stayed surprisingly robust. Corporate profits are far higher right now than I think most people thought they would be at this point in a cycle. And so yeah, sure, corporate profits could get squeezed a bit. Maybe they should get squeezed a bit, But I don't think that's not what keeps me awake at night.

What does keep you awake at night?

What does keep you awake at night?

Well, if you want to talk about this area, I think the whole future of manufacturing is a conversation to have. President Biden has been clear, and so have a lot of other people that they would like to see a manufacturing renaissance in this country. The IRA and some of the infrastructure bill and other things are heavily tilted toward making things here rather than elsewhere. But we have to recognize that we cannot produce most things on a globally competitive cost basis. We just have too high of wage structure, we have too high of an overall cost structure. We have much tougher environmental restrictions, which we should have in my opinion, but which add to cost. We have permitting problems which add to cost, and now those are unnecessary, and so I expect that. So people who basically say we're going to have this big manufacturing renaissance, I think are kidding themselves, and frankly kidding the American Steve.

Well, if you want to talk about this area, I think the whole future of manufacturing is a conversation to have. President Biden has been clear, and so have a lot of other people that they would like to see a manufacturing renaissance in this country. The IRA and some of the infrastructure bill and other things are heavily tilted toward making things here rather than elsewhere. But we have to recognize that we cannot produce most things on a globally competitive cost basis. We just have too high of wage structure, we have too high of an overall cost structure. We have much tougher environmental restrictions, which we should have in my opinion, but which add to cost. We have permitting problems which add to cost, and now those are unnecessary, and so I expect that. So people who basically say we're going to have this big manufacturing renaissance, I think are kidding themselves, and frankly kidding the American Steve.

Is always great to have you on.

Is always great to have you on.

Thank you so much. Thanks Stephen Radnery of will It Advisors, and he is fortunately a regular contributor to Wall Street Week. Coming up, we wrap up the week with special contributor Larry Summers of Harvard.

Thank you so much. Thanks Stephen Radnery of will It Advisors, and he is fortunately a regular contributor to Wall Street Week. Coming up, we wrap up the week with special contributor Larry Summers of Harvard.

We've still got very real risks to the soft landing scenario.

We've still got very real risks to the soft landing scenario.

That's next on.

That's next on.

Wall Street Week on Bloomberg. You're listening to Bloomberg Wall Street Week with David Weston from Bloomberg Radio.

Wall Street Week on Bloomberg. You're listening to Bloomberg Wall Street Week with David Weston from Bloomberg Radio.

This is Wall Street Week.

This is Wall Street Week.

I'm David western We're joined once again by our very special contributor here in Wall Street Week. He is Larry Summers of Harvard. Larry, thank you so much for being back with us. Let's start with the Fed. We did hear from the Fed today we have a new statement of economic projections. What did you make about what we heard from jpiwele the chair about where we are?

I'm David western We're joined once again by our very special contributor here in Wall Street Week. He is Larry Summers of Harvard. Larry, thank you so much for being back with us. Let's start with the Fed. We did hear from the Fed today we have a new statement of economic projections. What did you make about what we heard from jpiwele the chair about where we are?

I thought, broadly it was in line with expectations.

I thought, broadly it was in line with expectations.

Broadly it was reasonable.

Broadly it was reasonable.

I think the tilt to being worried about inflation was correct. I still think the FED is considerably too optimistic. It's possible that we will have the proverbial soft landing, but I think the risks that inflation will be worse than what they say are very real. You've got the UAW strike, You've got oil prices having spiked, you've got a budget deficit that this year will approach eight percent of GDP if you take out the student loan accounting item, and you've got a variety of technicals like in health insurance that are getting ready to kick in. So I think you've got real concerns on the inflation side, and at the same time you've got concerns on the other side that the consumer.

I think the tilt to being worried about inflation was correct. I still think the FED is considerably too optimistic. It's possible that we will have the proverbial soft landing, but I think the risks that inflation will be worse than what they say are very real. You've got the UAW strike, You've got oil prices having spiked, you've got a budget deficit that this year will approach eight percent of GDP if you take out the student loan accounting item, and you've got a variety of technicals like in health insurance that are getting ready to kick in. So I think you've got real concerns on the inflation side, and at the same time you've got concerns on the other side that the consumer.

Since Labor Day, it's not.

Since Labor Day, it's not.

Much time yet, but looks like the consumer is slowing a bit. Delinquencies are starting to rise. There's some wall of maturities that's going to come due over the next year. So it's certainly possible that it will work out as the Fed has it with inflation getting back to two with only negligible increases in unemployment, But that strikes me as more of a goal than a forecast. So I think we've still got very real risks to the soft landing scenario, both from the no landing continued inflation the Fed's going to have to raise rates more than it now expects side, and from the fact that every recession that we've had for a generation. People have been talking soft landing right before it, and they've turned out to be wrong. So I think that people just a little too optimistic right now, and I think the FEDS caught into that optimism. And you know, on the one hand, things won't be any better than and you aspire for them to be. On the other hand, it's a good idea to under forecast and overperform. So it's a very difficult balance that the FED has to walk. But my suspicion is that it's more likely than not that they're either going to get surprised on the higher inflation side or on the week or output downturn side, or possibly both could materialize in a stagflationary kind of dynamic.

Much time yet, but looks like the consumer is slowing a bit. Delinquencies are starting to rise. There's some wall of maturities that's going to come due over the next year. So it's certainly possible that it will work out as the Fed has it with inflation getting back to two with only negligible increases in unemployment, But that strikes me as more of a goal than a forecast. So I think we've still got very real risks to the soft landing scenario, both from the no landing continued inflation the Fed's going to have to raise rates more than it now expects side, and from the fact that every recession that we've had for a generation. People have been talking soft landing right before it, and they've turned out to be wrong. So I think that people just a little too optimistic right now, and I think the FEDS caught into that optimism. And you know, on the one hand, things won't be any better than and you aspire for them to be. On the other hand, it's a good idea to under forecast and overperform. So it's a very difficult balance that the FED has to walk. But my suspicion is that it's more likely than not that they're either going to get surprised on the higher inflation side or on the week or output downturn side, or possibly both could materialize in a stagflationary kind of dynamic.

Larry, you mentioned the OAW strike that is ongoing as we speak here, and the risk for the upside on inflation there coming out of that. What do you make of where we are right now in that because my point of view looking at it is I'm not sure where these parties can come to. Yes, between the two of them, they seem to be almost really opposed on some very basic things.

Larry, you mentioned the OAW strike that is ongoing as we speak here, and the risk for the upside on inflation there coming out of that. What do you make of where we are right now in that because my point of view looking at it is I'm not sure where these parties can come to. Yes, between the two of them, they seem to be almost really opposed on some very basic things.

Look, it's always easier to compromise on numbers that it is like, you know, how big is the way age increase is going to be than it is on principles like what's going to happen to the battery factories. It's easier to compromise on numbers like the size of pension packages than it is on questions like changing the separate wage structure for recently hired workers. So they've still got questions of principle as well as questions of numbers separating them. So this may go on for a while. And I think there are two big questions. One is what will the spillover be to the larger economy and to the Midwestern economy, including through price increases if cars get scarce, and what that means for automobile and used car prices. I also think there's some real questions here about when you have these highly publicized labor conflicts and you see what's likely to be a big number for the wage increase, I suspect that's going to give a lot of workers in a lot of places some pretty big ideas, and that may be a source of wage pressure as well, which complicates the issues around inflation. So this is a very difficult thing to manage, and I suspect it's going to be one of those things that will be with us for quite a while.

Look, it's always easier to compromise on numbers that it is like, you know, how big is the way age increase is going to be than it is on principles like what's going to happen to the battery factories. It's easier to compromise on numbers like the size of pension packages than it is on questions like changing the separate wage structure for recently hired workers. So they've still got questions of principle as well as questions of numbers separating them. So this may go on for a while. And I think there are two big questions. One is what will the spillover be to the larger economy and to the Midwestern economy, including through price increases if cars get scarce, and what that means for automobile and used car prices. I also think there's some real questions here about when you have these highly publicized labor conflicts and you see what's likely to be a big number for the wage increase, I suspect that's going to give a lot of workers in a lot of places some pretty big ideas, and that may be a source of wage pressure as well, which complicates the issues around inflation. So this is a very difficult thing to manage, and I suspect it's going to be one of those things that will be with us for quite a while.

Well, you raise a really important, profound point here, Is it possible we're looking at something more than a couple of labor disputes into more of a fundamental shift in the power between capitol and the one hand and labor on the other. Because we've had this with the ports in Los Angeles, we had at UPS, We've got the Writers Guild out there are a lot of other ones, and as you know, Larry, there has been a shift in the past really away from labor in.

Well, you raise a really important, profound point here, Is it possible we're looking at something more than a couple of labor disputes into more of a fundamental shift in the power between capitol and the one hand and labor on the other. Because we've had this with the ports in Los Angeles, we had at UPS, We've got the Writers Guild out there are a lot of other ones, and as you know, Larry, there has been a shift in the past really away from labor in.

The power layer.

The power layer.

You've even talked about the importance of organized labor.

You've even talked about the importance of organized labor.

I think that's the question.

I think that's the question.

I mean, I think there's no question my mind that a lot about what's happened in the economy over the last several decades can be explained by changes in labor power. I think that's contributed substantially to increased inequality.

I mean, I think there's no question my mind that a lot about what's happened in the economy over the last several decades can be explained by changes in labor power. I think that's contributed substantially to increased inequality.

I think that's.

I think that's.

Contributed substantially to rising wage differentials between industries. I think it's probably been a contributor to the flexibility that's allowed the normal rate of unemployment to come down as well. So it's been a two edged thing, and we may be looking at things go in the opposite direction.

Contributed substantially to rising wage differentials between industries. I think it's probably been a contributor to the flexibility that's allowed the normal rate of unemployment to come down as well. So it's been a two edged thing, and we may be looking at things go in the opposite direction.

Larry, you have been outspoken on this program and elsewhere about the plight of Ukraine and what the United States and the West should be doing, particularly when it comes to some of the Russian government assets, not private but government assets. We've had President Zelenski, of course, at the UN in New York this week, then going on to Washington. Where are you right now on what canon should be done with respective for perhaps reparations for Ukraine.

Larry, you have been outspoken on this program and elsewhere about the plight of Ukraine and what the United States and the West should be doing, particularly when it comes to some of the Russian government assets, not private but government assets. We've had President Zelenski, of course, at the UN in New York this week, then going on to Washington. Where are you right now on what canon should be done with respective for perhaps reparations for Ukraine.

I would just say this, it does little good to win wars if you don't win the peace. The peace in Ukraine can't be won without a viable economy that's able.

I would just say this, it does little good to win wars if you don't win the peace. The peace in Ukraine can't be won without a viable economy that's able.

To look to Europe.

To look to Europe.

That's got a price stag that's measured in the hundreds of billions of dollars. There are enormous global needs that are already unmet, for climate change, for pandemic.

That's got a price stag that's measured in the hundreds of billions of dollars. There are enormous global needs that are already unmet, for climate change, for pandemic.

For Africa.

For Africa.

It's a very difficult budgetary time in the United States and other major economies. What those facts say to me is that we're not going to find hundreds of billions of dollars for Ukraine in our budgets, and that if we find a lot of money. It's going to be enormously expensive money in terms of what it means politically and in terms of what it means for the rest of the world. And there's a place we can go for those resources. We can go to the assets of the Russian state that have already been seized and frozen and made unavailable to the Russian state. So it's practically necessary, morally right, and legally entirely legitimate. And I hope that President Zelenski will push President Biden on the issue. I hope that President Biden will push his lawyers. He's had pretty flexible lawyers when it's come to matters like student debt relief, when it's come to matters involving environmental protection, it would take a lot less flexibility to free up resources here and in Europe for Ukraine at a critically important time, and by doing it, we would also make it possible for the world to have a much more robust climate change global poverty effort going forward.

It's a very difficult budgetary time in the United States and other major economies. What those facts say to me is that we're not going to find hundreds of billions of dollars for Ukraine in our budgets, and that if we find a lot of money. It's going to be enormously expensive money in terms of what it means politically and in terms of what it means for the rest of the world. And there's a place we can go for those resources. We can go to the assets of the Russian state that have already been seized and frozen and made unavailable to the Russian state. So it's practically necessary, morally right, and legally entirely legitimate. And I hope that President Zelenski will push President Biden on the issue. I hope that President Biden will push his lawyers. He's had pretty flexible lawyers when it's come to matters like student debt relief, when it's come to matters involving environmental protection, it would take a lot less flexibility to free up resources here and in Europe for Ukraine at a critically important time, and by doing it, we would also make it possible for the world to have a much more robust climate change global poverty effort going forward.

Larry, thank you so much for being back with us on Wall STREETEK.

Larry, thank you so much for being back with us on Wall STREETEK.

That's Larry Summers of Harvard coming up.

That's Larry Summers of Harvard coming up.

Jose Maniah of novegne On Investment ideas you may not have thought of. And that's next on Wall Street Week on Bloomberg. This is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. This is Wall Street Week. I'm David Weston. As the Fed hit the theme of higher for longer once again this week, investors may need to be looking for opportunities in different places. Here for his thoughts on where those might be is Jose Mania. He is CEO of New Vene. So Jose welcome back, great Todavi and Wall Street.

Jose Maniah of novegne On Investment ideas you may not have thought of. And that's next on Wall Street Week on Bloomberg. This is Bloomberg Wall Street Week with David Weston from Bloomberg Radio. This is Wall Street Week. I'm David Weston. As the Fed hit the theme of higher for longer once again this week, investors may need to be looking for opportunities in different places. Here for his thoughts on where those might be is Jose Mania. He is CEO of New Vene. So Jose welcome back, great Todavi and Wall Street.

Always good to be here, David.

Always good to be here, David.

So you were responsible for so many investors and their decisions. It does look like we're going to have higher rates for longer. We can talk about how much longer, but how does that change potentially investment decisions.

So you were responsible for so many investors and their decisions. It does look like we're going to have higher rates for longer. We can talk about how much longer, but how does that change potentially investment decisions.

At this point, I'm going to go back to a narrative we've been talking about for quite a while. If you go back in the previous decade, or we've had more than a decade long of just rising markets and low interest rates, at that time, we would talk about, hey, you should be thinking about inflation. At some point. It's going to show up. By the way, you may want to have assets that are not correlated to each other in your portfolio because you may have more volatility. And by the way, rates eventually will rise. They go down over time, and it takes a while as they go back up, but they will start rising. That's why that narrative, which was one that was largely academic, around alternatives and how do you get a better portfolio, better correlated assets. Today it's not an academic discussion. It's an urgency. So again, going after things like private credit, going after things like farm land that we've talked about here before, timber infrastructure, private equity in general. These are things that are going to be important that today largely have only been accessed by large institutional, sophisticated investors.

At this point, I'm going to go back to a narrative we've been talking about for quite a while. If you go back in the previous decade, or we've had more than a decade long of just rising markets and low interest rates, at that time, we would talk about, hey, you should be thinking about inflation. At some point. It's going to show up. By the way, you may want to have assets that are not correlated to each other in your portfolio because you may have more volatility. And by the way, rates eventually will rise. They go down over time, and it takes a while as they go back up, but they will start rising. That's why that narrative, which was one that was largely academic, around alternatives and how do you get a better portfolio, better correlated assets. Today it's not an academic discussion. It's an urgency. So again, going after things like private credit, going after things like farm land that we've talked about here before, timber infrastructure, private equity in general. These are things that are going to be important that today largely have only been accessed by large institutional, sophisticated investors.

If you go back just a short time ago, all the talk and investing was about ESG, supposedly ESG Environmental Social Governance investing. Now we see some retrenchment, We see some of the big guys really pulling down some of the funds that they created for ESG. By the way, you see the government of the United Kingdom putting off some of the dates that that that we're talking about. Is ESG investible at this point? Is it less investable than it was?

If you go back just a short time ago, all the talk and investing was about ESG, supposedly ESG Environmental Social Governance investing. Now we see some retrenchment, We see some of the big guys really pulling down some of the funds that they created for ESG. By the way, you see the government of the United Kingdom putting off some of the dates that that that we're talking about. Is ESG investible at this point? Is it less investable than it was?

I believe what you're hearing in the narrative today is actual tailwinds for the ESG discussion. And I say that because ten years ago people would ask me the question, is this thing real people are talking about clients really want to buy it?

I believe what you're hearing in the narrative today is actual tailwinds for the ESG discussion. And I say that because ten years ago people would ask me the question, is this thing real people are talking about clients really want to buy it?

Now?

Now?

I would always say, you'll know when it's real when the regulators show up. You know when it's real when it becomes a political issue. And the reason is that's when you know money is really in motion. Will wake up when money is in motion. What is not going to go away is the risks embedded in around environmental issues, climate risk. These things are hitting portfolios. What's not going away is client demand for this as well.

I would always say, you'll know when it's real when the regulators show up. You know when it's real when it becomes a political issue. And the reason is that's when you know money is really in motion. Will wake up when money is in motion. What is not going to go away is the risks embedded in around environmental issues, climate risk. These things are hitting portfolios. What's not going away is client demand for this as well.

Jose it's always such a treat to heavy here. Thank you so much for spending time with us. That is jose Mania of Nuvene. Finally, one more thought clothes maketh the man, so wrote Erasmus in his collection of Adages from fifteen oh eight, though a version of this particular adage can be traced all the way back to Homer or maybe even the Babylonians. Until recently, many the man walking the halls of power, that's whether corporate or government took the maxim quite seriously, invariably showing up in the uniform of a well cut suit, a white shirt and a power tie.

Jose it's always such a treat to heavy here. Thank you so much for spending time with us. That is jose Mania of Nuvene. Finally, one more thought clothes maketh the man, so wrote Erasmus in his collection of Adages from fifteen oh eight, though a version of this particular adage can be traced all the way back to Homer or maybe even the Babylonians. Until recently, many the man walking the halls of power, that's whether corporate or government took the maxim quite seriously, invariably showing up in the uniform of a well cut suit, a white shirt and a power tie.

The richest one percent of this country owns half our country's well five trillion.

The richest one percent of this country owns half our country's well five trillion.

Dollars, and women haven't been far behind as they adopted their own versions of power suits.

Dollars, and women haven't been far behind as they adopted their own versions of power suits.

Hold all colls, Miss McGill, he has Cynthia.

Hold all colls, Miss McGill, he has Cynthia.

You can I get you anything. This is a trainer for feet.

You can I get you anything. This is a trainer for feet.

To me?

To me?

Is that you right?

Is that you right?

That'll be all.

That'll be all.

But the pandemic may have changed all that as people learn to work from home, where it didn't matter whether you were wearing your power suit or your tracksuit.

But the pandemic may have changed all that as people learn to work from home, where it didn't matter whether you were wearing your power suit or your tracksuit.

People who sat at home, which I'm not a fan of. Today people who were home were dressing casually. But I think that the world is going very much in a different place.

People who sat at home, which I'm not a fan of. Today people who were home were dressing casually. But I think that the world is going very much in a different place.

So as CEO's chafe at their workforce is not showing up at the office, at least physically.

So as CEO's chafe at their workforce is not showing up at the office, at least physically.

My golden rule is don't put the genie back in the bottle.

My golden rule is don't put the genie back in the bottle.

You can't.

You can't.

On the other hand, it's not a complete This is not an employee choice. They don't get to Jewessday compensation, they don't get to Jewsday promotion, they don't get to Jews. Stay I'm five days a week. I want them with other employees at least three or four days.

On the other hand, it's not a complete This is not an employee choice. They don't get to Jewessday compensation, they don't get to Jewsday promotion, they don't get to Jews. Stay I'm five days a week. I want them with other employees at least three or four days.

They may want to consider giving the incentive of some extra perks. And now it turns out that no less than the United States Senate is moving to loosen its dress code for our nation's highest elected legislators. Call me old fashioned, my wife and children certainly do. But I still think how you dress says something about how seriously you take what you're doing.

They may want to consider giving the incentive of some extra perks. And now it turns out that no less than the United States Senate is moving to loosen its dress code for our nation's highest elected legislators. Call me old fashioned, my wife and children certainly do. But I still think how you dress says something about how seriously you take what you're doing.

Now, I did not tell you dress copriately.

Now, I did not tell you dress copriately.

I wore this ridiculous things for you.

I wore this ridiculous things for you.

That does it. For this episode of Wall Street Week, I'm David Weston. This is Bloomberg.

That does it. For this episode of Wall Street Week, I'm David Weston. This is Bloomberg.

Stay with us.

Stay with us.

Today's top stories and global business headlines are coming up right now.

Today's top stories and global business headlines are coming up right now.