Bloomberg Markets: The Discontinuance 02/23/2024

ROMAINE: STRONG WEEK FOR NVIDIA.>> WE ARE KICKING OFF TO THE CLOSING BELL IN THE U.S.WITH A STRONG WEEK. SOME EXUBERANCE IS COOLING.S&P OFF THE HIGHS. NASDAQ 100 HIT A RECORD HIGHYESTERDAY. DOWN TODAY. THE STOCKS SEMICONDUCTOR INDEXSIMILARLY DOWN. THE TWO YEAR YIELD GETTING ABID IN THE BOND MARKET. IT'S BACK DOWN TODAY. ROMAINE:MODEST DAY. STRONG WEEK OVERALL, ON THEBACK OF NVIDIA. 90 POINTS ADDED TO THE S&P THISWEEK, A QUARTER OF THAT WAS.

THANKS TO NVIDIA ALONE.1/5 OF THOSE GAINS, YOU CAN THINK THE REST. NARROW, ITDOESN'T GET BETTER FROM THEIR. THE HAWKEYE ON BROAD MARKETSUPPORT. RIGHT AROUND 5073.THAT'S THE MAIN PIVOT POINT. 20 DAY MOVING AVERAGE BELOWTHAT. THAT'S THE BOTTOM PILLAR. EFFECTIVELY, WHAT TECHNICIANSARE LOOKING AT, THEY WANT TO SEE BROADER BUYING TO SUSTAINTHE MOMENTUM. TAKE THE ARMS INDEX, COMPARINGTHE NUMBER OF ADVANCING AND DECLINING STOCKS TO THEADVANCING AND DECLINING VOLUME.

THIS SUGGESTS MORE UPSIDEDEMAND. A READING ABOVE TWO, WOULD BE ASIGN OF INVESTORS SELLING. AT ONE POINT TODAY, WESURPASSED 1.7. BUYING PRESSURE IS WELL BELOWTHE PEAK WE HIT LAST YEAR, 3.7. THAT MIGHT BE A GOOD SIGN.GLOBAL EQUITY RETURNS SHOULD BROADEN AFTER A NARROW FIRSTQUARTER HERE, THAT IS STILL NOT OVER.THE STOCK PERFORMANCE WILL BE HEAVILY DEPENDENT THIS YEAR ONTHE EARNINGS FOLLOW-THROUGH, ENOUGH SO THAT THEY SEE REASONFOR A CYCLICAL TILT, A GROWTH.

TILT. SONALI:PARTICIPATION SO FAR. LOOK BACK FOR A MOMENT.NOT EVERYONE FELT THE BRUNT OF THE RALLY. THE NASDAQ 100, TECH HEAVY, THE47% RISE OVER ONE YEAR. YOU DON'T SEE THE SAME OF THEBROADER INDICES, EVEN THE S&P, UP 2 27%. THE RUSSELL 2000, SO MANYINVESTORS LOOKING AT THE POTENTIAL FOR SMALL AND MID-CAPSTOCKS TO CATCH UP. AT THE END OF DECEMBER, YOU SAWA NARROWING OF THE BANDS.

BETWEEN THE S&P AND THE 2000.YOU ARE SEEING THAT THE VERGE AGAIN. — DIVERGE AGAIN. WE WILL SEE WHETHER SOME OFTHESE LAGGARDS CATCH UP. ROMAINE:LET'S PICK THE BRAIN OF OUR FIRST GUEST, JEREMY SIEGEL,PROFESSOR EMERITUS, THE WHARTON SCHOOL, UNIVERSITY OFPENNSYLVANIA, A WATCHER NOW FOR DECADES. YOU SEEN IT ALL.WE TALK ABOUT YOUR BOOK ALL THE TIME AND HOW PIVOTAL THAT WAS. ARE WE IN A SITUATION WHERE ITIS SEVEN STOCKS FOR THE LONG.

RUN? JEREMY: [LAUGHTER] THIS HAS BEEN A NARROW RALLY.I HOPE IT BROADENS OUT. THE UPTREND IS INTACT.I THINK WE GET A BETTER PCE INFLATION READING NEXT WEEK. A BETTER INFLATION READING INFEBRUARY THAT MIGHT QUELL FEARS THAT THE FED IS MAYBE NEVERGOING TO LOWER RATE. THERE WAS TALK OF A HIKE. I THINK THIS ECONOMY HAS STILLGOT STRENGTH. ALL GDP PROJECTIONS ARE COMINGIN AHEAD OF WHAT WE THOUGHT IN.

DECEMBER.THE EXCITEMENT OF AI CANNOT BE DENIED. IT COULD GO FURTHER. BEFORE IT SETTLES. ROMAINE:YOU STILL HAVE NAYSAYERS. TALK ABOUT THE POTENTIAL BOOSTOF AI BUT THE FOUNDATION OF ECONOMIC DATA STILL SHOWS ARESILIENT ECONOMY. A LOT OF PEOPLE ARE STILLSCARED OF AN ECONOMIC CLIFF. JEREMY:PEOPLE HAVE BEEN SAYING, IS THIS LIKE WHAT HAPPENED WITHTHE INTERNET IN 1999? WE ARE NOT THERE AT ALL YET.A LOT OF DEBATE, IN NEW YORK.

THE LAST COUPLE DAYS, DOES THISLOOK LIKE 1997? I SAID NOT YET AT ALL. I REMEMBER 2000, WHEN WE WERETALKING ABOUT 200 TIMES FORWARD EARNINGS, AND THOSE WERE THEONES ACTUALLY EARNING MONEY. WE ARE NOWHERE NEAR THAT.THESE RALLIES HAVE BEEN BACKED BY EARNINGS. IT'S RICH. YOU HAVE TO BEAT EXPECTATIONSBY A LOT TO GET THESE STOCKS TO CONTINUE TO MOVE UP.NVIDIA ACCOMPLISHED THAT IN THE LAST QUARTER.A COUPLE OF THE MAGNIFICENT.

SEVEN DIDN'T, EVEN THOUGH THEYBEAT. THAT'S THE DANGER ONCE YOU GETTO THOSE HIGHER PE STOCKS. SONALI:THE POSSIBILITY OF MORE BREATH TO THE MARKET.WHAT WOULD IT TAKE FOR BADLY BEATEN SECTORS, REGIONAL BANKS,HOUSING, FOR THEM TO FEEL SOME LOVE? JEREMY: BOTH THOSE ARE CHALLENGED, TO SAY THE LEAST. WITH STRENGTHTHE ECONOMY HAS SHOWN THAT HAS SURPRISED EVERYONE, ECONOMISTSAND THE FED, LOOK AT FED GDP.

PROJECTIONS — WE ARE ABOVETHEM. THEY HAVE SMILES. WE ARE IN A HAPPY PLACE.WE HAVE A STRONG ECONOMY. INFLATION IS COMING DOWN.YOU KNOW, AS FAST AS SOME PEOPLE HAVE HOPED, BUTCERTAINLY ON THE TREND DOWN. THERE'S NO INCENTIVE NOW FORTHEM TO LOWER RATES. IF THERE IS NO INCENTIVE, THATCHALLENGES REAL ESTATE AND BANKS, THESE SMALLER BANKS THATMAKE UP THESE SMALLER INDICES. THEY HOLD COMMERCIAL REALESTATE THAT HAS TO BE ROLLED OVER.A LOT OF PEOPLE SAY I DON'T.

THINK I CAN ROLL OVER AT A FEDFUNDS RATE OF 5.5. SONALI: COMMENT ON THAT.MARKET IS PRICING IN A JUNE RATE CUT SO GIVEN WHAT YOU ARESAYING ABOUT PCE NEXT WEEK, THESE THAT CUT IN THE BAG?– IS THAT CUT IN THE BACK? — BAG? JEREMY:NOTHING IS IN THE BAG. BEFORE JUNE, WE ARE GOING TOHAVE THREE MORE INFLATION CYCLES, JOB CYCLES.THINGS CAN TURN AROUND. WE COULD SEE EXHAUSTION OFCONSUMER. SOME INTEREST RATE CHALLENGEDSECTORS BEGIN TO DEPRESS THE.

MARKET. IT HASN'T HAPPENED YET. I SAY JUNE IS NOT IN THE BAG.IT COULD GO EITHER WAY. MARCH 20, THE FED MEETING. I EXPECT THE PLOT TO BE MOREAGGRESSIVE THAN WHAT WE SAW IN DECEMBER, IN OTHER WORDS, NOTAS MANY RATE CUTS. ROMAINE: FEELS LIKE THE MARKET ISGETTING THE MESSAGE. APPRECIATE TALKING TO YOU,PROFESSOR. COMING UP, THE FOCUS ON AI WITHCHARLES PHILLIPS. SONALI: INTUITIVE MACHINES, BUTHOUSTON-BASED COMPANY, WE LOOK.

AT THE BUSINESS OF SPACE.ROMAINE: A NEW SURVEY FINDS IT'SBECOMING HARDER TO EARN A HIGHER SALARY WHEN WORKING FROMHOME. IF YOU ARE WATCHING FROM YOURCOUCH, DON'T MISS THAT. THIS IS BLOOMBERG. ♪ SONALI:IF YOU WANT TO HUNDRED THOUSAND DOLLARS A YEAR OR MORE, PREPARETO DUST OFF YOUR WORK CLOTHES, AND GO TO THE OFFICE. IN THE FOURTH QUARTER LASTYEAR, LISTING SHRUNK TO ONE IN.

10. WHAT IS DRIVING THIS? REPORTER:WE SHOULDN'T BE SURPRISED HIGH-PAYING REMOTE JOBS ARE ONTHE DECLINE. ALL REMOTE FAMILY JOBS ARE ONTHE DECLINE. THE STORY FOUND JOB POSTINGSAND THE MORE REMOTE FRIENDLY SECTORS WERE DOWN 8% VERSUSPRE-PANDEMIC, VERSUS JOBS WHERE YOU NEED TO BE IN THE OFFICEMORE WERE STILL AT DOUBLE DIGITS.WE ARE NOT SAYING REMOTE WORK IS GOING AWAY.CERTAINLY FEWER OF THOSE JOBS.

THESE HIGHER-PAYING JOBS,YOU'RE PROBABLY LEADING A TEAM. THEY WANT YOU IN MORE OFTENTHAN NOT TO MENTOR, BRAINSTORM, THOSE THINGS.IT'S NOT LIKE YOU CAN DO YOUR TPS REPORTS FROM ANYWHERE.ROMAINE: IS THERE A BROADER TREND, IFYOU ARE A REMOTE WORKER, PARTICULARLY IF YOU WERE HIREDIN THAT ENVIRONMENT, SOMEHOW THAT ABILITY, YOU ARE NOT ATTHAT LEVEL, DOES THAT MEAN YOUR TRAJECTORY IS INTERRUPTED?REPORTER: THERE ARE SUGGESTIONS OF THAT.CERTAIN CEOS HAVE SAID, IF YOU.

WANT TO BE REMOTE ALL THE TIME,THAT'S FINE, BUT DON'T EXPECT TO MOVE UP THE LADDER ASQUICKLY. ROMAINE: I ASSUME THEY DID THOSECOMMENTS FROM THEIR OFFICE? REPORTER: I WOULD HOPE SO.[LAUGHTER] ROMAINE: SUBTLE MESSAGING. REPORTER: DO YOU WANT TO LOSE A TALENTED,QUALIFIED EMPLOYEE BECAUSE HE WON'T LET THEM WORK FROM HOME ALITTLE BIT OF THE TIME? IT'S NOT BLACK OR WHITE. SONALI:WHAT ABOUT PEOPLE WHO GIVE UP PAY FOR MORE FLEXIBILITY?REPORTER: THAT'S TRUE.

THAT'S IN THE DATA.PEOPLE ARE WILLING TO GIVE UP A BIT OF SALARY FOR MOREFLEXIBILITY BECAUSE FLEXIBILITY IS WORTH MORE TO THEM.TIME WITH THEIR FAMILY. PICK UP THE DRY CLEANING ON AFRIDAY. IT'S WORTH A LOT. ROMAINE:IS THERE A SENSE, THIS IS CONCENTRATED IN CERTAININDUSTRIES OR GEOGRAPHIES AND THERE ARE OTHER PLACES WHEREYOU DON'T WORRY? REPORTER: GOOD POINT.THERE'S NOT ONE JOB MARKET. THERE ARE MARKETS.HOME HEALTH AIDE, WALMART, AI.

A LOT DEPENDS.THE LOCAL NUANCES. ARE THEY OFFERING SOMETHINGREMOTE? MAYBE YOU WILL WORK FROM ANYWHERE.FOUR OFTEN THESE DAYS, THE NUMBER OF REMOTE FRIENDLY JOBSARE ON THE DECLINE. ROMAINE: A LOT OF US CAN DO OUR JOBSFROM ANYWHERE, AS LONG AS AT&T KEEPS THE NETWORK UP.MATT DOYLE, A CLOSE LOOK AT REMOTE WORK. WE DON'T HAVE THAT LUXURY.WE CAN'T DO THIS FROM HOME ALTHOUGH WE HAVE TRIED. SONALI:[LAUGHTER] ROMAINE:.

I DON'T HAVE A LOT OF SYMPATHY.THE WORLD'S SMALLEST VIOLIN. SONALI: THERE ARE CERTAIN NEEDS.PEOPLE HAVE PAID FOR REAL ESTATE AWAY FROM THE CITY ANDHAVE LOCKED IN A MORTGAGE THAT WAS NOT 7% AND NOW THEY FACE ANEW REALITY. ROMAINE: THOSE FOLKS WHO RESTRUCTUREDTHEIR LIFESTYLE AND WHERE THEY LIVE AROUND REMOTE WORK, MAYBEHAVE TO ROLL THAT BACK IN AN EXPENSIVE WAY.COMING UP, 45 MINUTES TO THE BELLS.BIG MARKET MOVES ON THE DAY, SHARES OF WARNER BROS.DISCOVERY TOUCHING LOW TODAY.

JASON WILL JOIN US FROM CITI.THIS IS BLOOMBERG. ♪ ROMAINE: BIG MOVERS.RIVIAN, DOUBLE DOWNGRADE TODAY. PRICE TARGET GOING DOWN $28. ANALYSTS PESSIMISTIC ABOUT THEABILITY TO TURN A PROFIT. RIVIAN'S CURRENT STRATEGY ISSTILL “QUITE ONEROUS ON CASH AND THE COMPANY LIKELY NEEDSCAPITAL RAISES THAT COULD AMOUNT TO 30% OF ITS CURRENTMARKET CAP.” CARVANA GETTING A LIFT.FOURTH QUARTER EARNINGS BEAT. ONE WEEK AFTER THE ANALYSTS CUTTO UNDERPERFORM.

INTERESTING FLIP-FLOP. FAVORABLE RETAIL SPREADS ANDSTRUCTURAL IMPROVEMENTS IN THE BUSINESS.SHARES HAVING A DECENT DAY, UP 35%. FOX UPGRADED. THE SPORTS STREAMING VENTUREWITH DISNEY AND WARNER BROS. WILL BE A WIN THAT WILL REDUCEEXPOSURE TO SECULAR PRESSURES. AS FOR CONCERNED CUSTOMERSWON'T SIGN UP, HE DISAGREES, SAYING THE MARKET ISUNDERESTIMATING THE POTENTIAL IMPACT.

WE STAY WITH JASON, WHO COVERSWARNER BROS. DISCOVERY, SHARES OF THE GIANTTOUCHING AN ALL-TIME LOW ON THE BACK OF THE LATEST EARNINGSRELEASE. JASON IS THE INTERNET AND MEDIAANALYST AT CITIBANK. THIS REPORT LEFT A LOT TO BEDESIRED. 7% DROP IN SALES. 18% DROP IN THE FILM BUSINESS.ANY BRIGHT SPOTS? JASON: IT WAS TOUGH TO FIND THEM.THE STREET WAS REACTING TO DISAPPOINTING NUMBERS IN THEQUARTER, ON EVERY DIVISION. IT MISSED EXPECTATIONS BY $300MILLION.

THE REACTION WAS PRETTYRATIONAL. ROMAINE: NEXT STEP? SO MUCH SPECULATION ABOUT THEFUTURE OF WARNER BROS. DISCOVERY. STANDALONE COMPANY?GET ABSORBED? WHETHER IT GOES DOWN THE ROADTO PARTNERSHIPS? JASON:IT MIGHT BE ALL OF THE ABOVE. IF IT REMAINS STANDALONE, THETRICK IS TO TAKE $9 BILLION THEY GENERATE IN THEIR CORENETWORKS BUSINESS, WHERE YOU SEE THE AD PRESSURES AND CORDCUTTING, AND MITIGATE THOSE LOSSES.MAKE UP FOR IT WITH BETTER.

RESULTS FROM THE STUDIO, ANDBEGIN TO GENERATE PROFITS IN THE DIRECT TO CONSUMERBUSINESS, WHICH TODAY IS FLAT. SONALI:WITHOUT MUCH UNCERTAINTY, HOW MUCH TIME DO YOU GIVE THEM TOFULFILL THEIR DREAMS? IS THERE A RISK THEY GO FROM ABUY RATING TO SOMETHING LESS THAN THAT? JASON:OUR THESIS IS SIMPLE. THINK MECHANICALLY, THE STREETIS VALUING, EVERY YEAR, THEY ARE TAKING $6 BILLION CASH FLOWAND DELIVERING. YOU SHOULD BE SWAPPING DEBT FOREQUITY.

AS LONG AS IT CAN REMAIN STABLEAND THEY ARE DELEVERAGING, THE EQUITY SHOULD PERFORM BETTER.THE PINCH NOW IS, IT'S NOT STABLE. IT'S FALLING.THAT'S WHAT THEY HAVE TO TURN. SONALI:HOW LONG DO YOU GIVE THEM TO TURN IT?THERE GROWTH PLANS COULD BECOME COSTLY OVER TIME. JASON: GETTING THE STREAMING BUSINESSTO $1 MILLION IS A STRETCH. THEY HAVE A LOT OF TOPLINETAILWINDS. MOST OF IT THIS QUARTER WAS INTHE STUDIO.

THEY WILL HAVE A DIFFICULT Q1.YOU WILL STILL SEE AFTERSHOCKS OF THE STRIKES.WHEN WE GO THROUGH THE NUMBERS, THE STUDIO SHOULD TURN INTO ABRIGHT SPOT FOR THE BALANCE OF '24. ROMAINE:YOU ARE TALKING ABOUT FROM A COST/PROFITABILITY PERSPECTIVE?JASON: THE TOP LINE SHOULD BE BETTER. ROMAINE:THE CONCERN HAS BEEN, SOME OF THE EFFORTS TO IMPROVEPROFITABILITY SEEM TO COME AT THE EXPENSE OF CONTENT.THE IDEA OF CREATING LESS.

COSTLY CONTENT BUT AS YOU KNOW,IN ORDER TO KEEP PACE IN THE STREAMING WARS, YOU NEEDCONTENT. IT IS SOMETHING WARNER BROS.HAS LAGGED IN. JASON: TRUE. IT HAS BEEN MISFIRES FROM ACREATIVE STANDPOINT. THE CONTENT THEY RELEASED, THEEXCEPTION OF BARBIE, HAVEN'T REALLY RESONATED WITH CONSUMERS.LOOK AT THE NEXT MOVIES COMING OUT, WHETHER THE JOKER OR DUNE,THE MARKET THINKS THOSE WILL DO BETTER. THE DOMESTIC BOX, THEY DID $1.3BILLION LAST YEAR.

THIS WILL GO A LONG WAY.IT WILL GENERATE PROFITS IN THE STUDIO. IT SHOULD HAVE KNOCK ONBENEFITS FOR STREAMING. ROMAINE:I WILL ASK YOU THE FLIP. KNOWING DAVID'S HISTORY HERE,IS THERE A POSSIBILITY INVESTORS SHOULD BE LOOKING ATFOR ACQUISITIONS BY WARNER BROS. DISCOVERY? JASON:I'M IN THE MINORITY ON THIS. I THINK THERE NEEDS TO BEANOTHER ROUND OF CONSOLIDATION. YOU CANNOT DRAW A STRAIGHT LINEBETWEEN M&A AND SUCCESS IN STREAMING.THEY DON'T WANT TO SEE MORE OF.

IT. THAT IS DEAD WRONG. IT'S ABSOLUTELY THE RECIPE FORSUCCESS. ANY COMBO THEY GO THROUGH WOULDBE POSITIVE IN THE LONG RUN. IN THE NEAR TERM, WHERE THEREIS POSITIVE FOR THE STOCK, IS A FUNCTION OF THE LEVERAGE GOINGUP OR DOWN. THAT IS WHAT THE STREET WILLLOOK FOR. ROMAINE: GREAT TO TALK. THOSE SHARES NOW AT A RECORDLOW. WHEN THEY CAME PUBLIC, THEREWAS A LOT OF AMBITION, THAT.

THIS COULD BE THE NETFLIXKILLER. THEY'VE GOT GREAT CONTENT BUTIS NOT ABLE TO SHOW PROFITABILITY. SONALI:EVEN WITH CONTENT, WHERE'S HARRY POTTER?WHERE ARE THESE BIG HITS? ROMAINE:I'M GLAD HE MENTIONED BARBIE, WHICH I WAS NOT A FAN OF.IT WAS IN THE ZEITGEIST. DUNE IS COMING DOWN THE PIKE.IS THAT ENOUGH TO WRITE THE SHIP?DO THEY WANT SOMETHING UNIQUE LIKE BARBIE OR ANOTHER DCCOMICS MOVIE? SONALI:.

EVEN SPORTS, HOW DIVERSE CANTHAT BE? WE WILL SEE. ROMAINE: WE WILL KEEP AN EYE ON THOSESHARES. AFTER THE BREAK, CHARLESPHILLIPS, COFOUNDER OF RECOGNIZE.HIS PERSPECTIVE ON IDENTIFYING TECH TALENT AND THE IMPACT OFAI. THIS IS BLOOMBERG. ROMAINE: COUNTDOWN TO THE CLOSE.ANOTHER INTERESTING WEEK. A BREATHER OFF THAT MONSTERRALLY, PAUL ABOUT NVIDIA, AI, BIG TECH. SONALI:A LITTLE RALLY IN THE BOND MARKET TODAY. YIELDS HIGHER.THE MARKET SHRUGGED.

THE BIG TECH PLAYERS ARE NOTHIGHLY LEVERAGED. THE HIGH COST OF FINANCING WILLNOT BITE INTO THEM IN THE SAME WAY WE ARE SEEING IN OTHERAREAS. ROMAINE: A LOT OF FOLKS GRAVITATING TOTHAT SPACE, TRYING TO LOOK BEYOND NVIDIA, TRYING TO FINDOTHER COMPANIES THAT COULD BENEFIT FROM THE BOOM,INCORPORATING GENERATIVE AI INTO THE WORKPLACE IS A BIGCOMPONENT OF IT, DRUMMING UP EXCITEMENT AND FEAR.THE RECENT SURVEY FROM RECOGNIZE HIGHLIGHTS CAUTIOUSOPTIMISM AMONG WORKERS WITH.

SECURITY AROUND THE MAINCONCERN. HOW TO SOURCE TALENT THAT COULDMANAGE IT AND WHETHER AI COULD PRODUCE FAIR AND ACCURATE DATA.RECOGNIZE WORKS WITH ENTREPRENEURS TO BUILD MOREEVOLVED TECH SERVICES COMPANIES. CHARLES PHILLIPS IS THECOFOUNDER OF RECOGNIZED, THE FORMER COPRESIDENT AT ORACLEAND SITS ON THE BOARDS OF SEVERAL COMPANIES INCLUDINGBUYER, AND CBS. THE GENERAL IDEA, THE HOPE OFAI. WE ALL KNOW THE EXTREME FEARS,THE PROMISES.

HELP US MAKE SENSE OF THEREALITY NOW. CHARLES: GOOD TO SEE YOU.THESE TRENDS TAKE A LONG TIME TO PLAY OUT AND SOMETIMES THEYBUMP ALONG AT THE BOTTOM WHILE WE SOLVE THE ISSUES.THEN IT TAKES OFF AND GOES FURTHER THAN YOU THINK I'MOPTIMISTIC WE CAN SOLVE THOSE PROBLEMS AND THIS WOULD BE MOREPOSITIVE THAN NEGATIVE. THE BACKDROP IS, WHERE WE AREECONOMICALLY, WE ARE RUNNING OUT OF TABLE TO WORK ON.WE HAVE A FALLING UNEMPLOYMENT RATE, WHICH IS GOOD.WE HAVE AN AGING WORKFORCE.

WE HAVE NO REAL PROSPECTS INH-1B VISAS. THERE'S A LOT OF THINGS GOINGON. LAWYERS COMPLAIN ABOUT NOT FINDING ENOUGH WORKERS.I'M NOT WORRIED ABOUT JOBS FOR PEOPLE.DO WE HAVE ENOUGH PEOPLE FOR JOBS?THAT'S WHERE AI MAKES US MORE PRODUCTIVE AND TO MAKE UP THEGAP. WE DON'T HAVE ENOUGH POPULATIONGROWTH. ROMAINE: WHAT'S THE SOLUTION?WE COULD TALK ABOUT AI. WHEN YOU APPLY IT TO SPECIFICCOMPANIES, WHAT ENDS UP BEING.

THE SOLUTION?TAKING AWAY THE LOWER SKILL TYPE TASKS?CAN IT ALSO BE APPLIED TO HIRE SKILLED TASKS? CHARLES:YOU START WITH SIMPLE THINGS. IT TAKES AWAY THE DRUDGERY. THE NUMBER ONE USE CASE IN CALLCENTERS, AS YOU CALL IN TO A CUSTOMER SERVICE PERSON, THEYARE SEARCHING ON MULTIPLE APPLICATIONS, TRYING TO FINDTHE ANSWER. PAST DATA, ON THE WEB. YOU COULD AGGREGATE THAT IN ONEPLACE, MORE ACCURATELY.

YOU WOULD GET LOWER TURN.THERE IS SUCH A HIGH TURNOVER IN CALL CENTERS.PEOPLE DON'T WANT TO DO IT. THINGS THAT PEOPLE DON'T LIKETO DO, THEY COULD BE MORE PRODUCTIVE IF THEY DIDN'T HAVETO DO THEM. ROMAINE: ARE THEY FITTING WITH THATGENERAL PART OF THE MARKET? CHARLES:WE HAVE COMPANIES THAT SIT BETWEEN THE CORE PLATFORMS ANDTHE AI AND THE CUSTOMER. YOU LOOK FOR USE CASES.WHAT'S A GOOD SITUATION FOR AI TO SOLVE A BUSINESS PROBLEM?NOTHING HAPPENS UNLESS SOMEONE.

TAKES TECH AND MAKES ITSPECIFIC TO THAT COMPANY. THAT'S WHAT WE INVEST IN.WE EXPLAINED THAT THE COMPANIES, HOW TO FIND THE USECASES IN A COST-EFFECTIVE WAY. ROMAINE:IS WHAT IS HAPPENING NOW MATERIALLY DIFFERENT THAN WHEREWE WERE SEVERAL YEARS AGO? THE EARLY DAYS, WE STARTED TOHEAR TALK OF THIS, QUITE SOME TIME AGO, EVEN THINGS ON THECLOUD, ORACLE, AND FOR, THE AI COMPONENTS, WHAT'S DIFFERENTNOW THAN WHERE WE WERE 15 YEARS AGO? CHARLES: GOOD QUESTION.

THE INTERNET, THE CLOUD, WEWENT DECADES WHERE PEOPLE WERE SKEPTICAL.AI IS GOING THROUGH THE SAME THING. TECHNOLOGY CHANGES. NOW IT'S BACK IN FAVOR. IN THE ENTERPRISE, IT TAKES ALONG TIME. PEOPLE ADOPT TECHNOLOGY SLOWLY.THERE ARE ISSUES AROUND SECURITY. THE COMPLICATED INFRASTRUCTURE,THE DATA IS NOT CONSISTENT. WE HAVE TO CLEAN THAT UP.IT DOES HAPPEN OVER A LONG TIME.

ROMAINE:THE ETHICS BEHIND AI AND THE NEED TO MAKE SURE IT ISEQUITABLE. THE PAST TECH BOOMS, IT SEEMS ABROADER TYPE OF TECHNOLOGY. AI SEEMS SPECIFIC.WHETHER YOU ARE FINDING NEW COMPANIES/ENTREPRENEURS ORLOOKING AT CUSTOMERS ON THE END OF THIS, TO MAKE SURE WHAT ISBEING PUT OUT THERE DOES REFLECT US ALL? CHARLES: FAIR. USUALLY THIS COMES UP AROUNDIMAGE RECOGNITION. IT HASN'T DONE A GREAT JOBREFLECTING PEOPLE OF COLOR.

IT WAS TRAINED ON A DIFFERENTDATASET. WHEN YOU TRY TO REMEDY THAT, ITWON'T HAPPEN OVERNIGHT, BUT CHANGING THE DATASETS, THESEMODELS, THE IMAGES WILL GO A LONG WAY. FOR MANY USE CASES, IT'SPRODUCTIVE. ROMAINE: HOPE THAT WE ARE MOVING IN THERIGHT DIRECTION? CHARLES: I DO. IT'S IN THE COMPANY'S INTERESTTO DO THAT. THE COMPLEXION OF THE COUNTRYWILL CHANGE A LOT IN THE NEXT 10 YEARS.TO MAKE THE TECHNOLOGY FAIR,.

THEY HAVE TO DO THAT.IT WILL TAKE TIME. ROMAINE:APPRECIATE YOU TAKING TIME. CHARLES SERVES ON THE BOARD OFBLOOMBERG LP, PARENT COMPANY OF THE NETWORK YOU ARE WATCHING. SOME OF THE BIG MOVES,INCLUDING SHARES OF INTUITIVE MACHINES.THE HISTORIC MOON LANDING. THE STOCK OF THE HOUR UP IN ABIG WAY, COMING UP NEXT. ♪ >> COMMERCIAL LANDER NAMEDODYSSEUS POWERED BY INTUITIVE.

MACHINES, LAUNCHED UPON ASPACEX ROCKET CARRYING A BOUNTY OF NASA SCIENTIFIC INSTRUMENTSAND BEARING THE DREAM OF A NEW ADVENTURE. ROMAINE: BILL NELSON ON THE HISTORICMOON LANDING YESTERDAY. INTUITIVE MACHINES BUILT THATLANDER. SHARES SURGING TODAY. THE HOTTEST STOCK OF THE YEAR,OUTPERFORMING EVERYTHING ELSE IN THE NASDAQ. WAS A TINY COMPANY.NOW IT'S ON ITS WAY TO THE MOON. ABIGAIL: EXCITING MOMENT.NOT JUST THIS LANDING. BACKUP.

IT IS.INVESTORS HAVE A GOOD SENSE. THE STOCK UP TODAY 20%, COMINGOFF THE HIGHS NOW. AFTER HOURS YESTERDAY, UP 43%. A LOT OF PEOPLE WERE BETTING ITWOULD BE SUCCESSFUL. IT WAS NAILBITING.BEFORE LANDING, THERE WERE SOFTWARE GLITCHES. SONALI: YOU SAW THE STOCK DOWN ON THEDAY, THEN RISE AFTERMARKET. THEY NEEDED A SOFTWARE PATCH TOFIX THE GLITCHES ON THE FLY. WHAT DOES A LANDING LIKE THISMEAN? ABIGAIL:.

THIS VALIDATES THE COMPANY. THERE CAN BE A COMMERCIAL,PRIVATE BUSINESS OF SPACECRAFT GOING TO THE MOON.NASA PAID $118 MILLION FOR ODYSSEUS, LOVE THAT NAME, MAKESTHE LANDER PERSONAL, A FRACTION OF WHAT IT WOULD NORMALLY COST,BUT IT POSITIONS THEM WELL FOR FUTURE CONTRACTS. TRIPLING OF THE PRICE TARGET.OVERWEIGHT BENCHMARK. THE PREEMINENT MOON PLAYER. OVER THE LAST YEAR, THE STOCKDOWN 53%.

IT'S NOT AS THOUGH THIS ISCLEAR BUT THERE IS HOPE. IF YOU LOOK AT THE NUMBERS THISYEAR, IF THIS COMPANY BECOMES PROFITABLE — ROMAINE:THIS IDEA, IF YOU WANT INVESTMENT IN SPACE, THERE'SONLY SO MANY PUBLIC COMPANIES. THE HOLY GRAIL WOULD BE SPACEX,IF THEY WENT PUBLIC. RIGHT NOW IT'S INTUITIVE OR THELEGACY COMPANIES LIKE LOCKHEED. ABIGAIL: THE EXCITEMENT IS WITHINTUITIVE. GOOD POINT. THIS OPENS THEM UP FOR EXCITINGINVESTMENT POTENTIAL OR EVEN THE END GOAL IS TO BE BOUGHTOUT.

MAYBE THEY DON'T WANT TO TAKEIT ALL THE WAY. THEY'VE GOTTEN THE BALL FURTHERDOWN THE FIELD, OR HIGHER INTO THE SKY. ROMAINE: A LOT OF — ABIGAIL:THIS IS A SQUEEZE. THERE IS A SPECULATIVE –ROMAINE: THEY WERE SHORTING THE MOON?ABIGAIL: HOW CAN YOU DO THAT? ROMAINE:THE MOON SO FAR IS UNDEFEATED, AFTER ALL.SHARES OF INTUITIVE MACHINES UP ON THE DAY.IT'S ALMOST QUADRUPLED HERE.

TODAY. — YEAR-TO-DATE. SONALI: IS IT NOT AMERICAN TO SHORT THEMOON? ROMAINE: IT GETS TO THE IDEA OF TECH.SPACEX. FOR A LONG TIME, THEY WERE THEONLY ONES WHO COULD DO WHAT THEY WERE DOING.INTUITIVE MACHINES IS NOW IN THAT POSITION.ONLY TWO COMPANIES HAVE PROVEN THEY HAVE THE CAPABILITY.SONALI: SPACEX'S VALUATION IS FLYING INPRIVATE MARKETS. ROMAINE: ROMAINE:THIS IS THE COUNTDOWN TO THE.

CLOSE. 10 MINUTES TO THE BELLS.BIG RALLY YESTERDAY. WE GIVE THAT BACK TODAY.THE S&P HOLDING ITS OWN. NO MATERIAL GAINS.SIGNIFICANT FOR THE WEEK. SONALI: YOU WOULD SEE THE BEST WEEK ONRECORD, LOOKING AT THE STOCK SEMICONDUCTOR INDEX. ROMAINE:WEIRD BLEND OF THE MACRO AND MICRO. TWO YEAR YIELDS ELEVATED.IDIOSYNCRATIC STORIES ON THE WEEK WITH NVIDIA AND THEFLIP-FLOP AI PLAYS WHERE WE SAW PROFIT TAKING.

HMORE ON BIG TECH.IT'S LOSING STEAM TODAY. NVIDIA DROVE THE AI RALLY THISWEEK. WE CAUGHT UP WITH JEREMY SIEGELABOUT THE RECENT MOVES. >> THIS HAS BEEN A NARROW RALLY.I HOPE IT BROADENS OUT. THE UP TREND IS INTACT.I THINK WE GET A BETTER PCE READING NEXT WEEK, A BETTERINFLATION READING IN FEBRUARY THAT MIGHT QUELL FEARS THAT THEFED IS NEVER GOING TO LOWER RATES.THERE WAS TALK OF MAYBE A HIKE. THIS ECONOMY STILL HAS STRENGTH.ROMAINE:.

HERE TO TAKE US TO THE BELLS,PHIL ORLANDO. WHEN YOU LISTEN TO WHAT JEREMYWAS SAYING, THE ECONOMIC DATA, THE EARNINGS — IS THERE AFOUNDATION THAT WOULD PROVIDE ARGUMENT FOR MORE MARKET GAINS?PHIL: THANK YOU FOR HAVING ME. WE'VE GOT A SOFT LANDING THESIS.WE'VE NOT BEEN IN THE OUTRIGHT RECESSION CAMP.FOURTH QUARTER EARNINGS. THE EXPECTATION GOING IN WASEARNINGS WOULD BE UP 2%. LOOKS LIKE THEY WILL BE UP 8%YEAR-OVER-YEAR. EARNINGS ARE SURPRISING.THE MARKET IS DOING.

PHENOMENALLY WELL.YOU ARE UP 25% SINCE THE BOTTOM OF THE MARKET LAST OCTOBER.WE GOT TO BE UP 7% THE FIRST TWO MONTHS OF THE YEAR.OUR FULL-YEAR TARGET FOR THE S&P IS 5200. WE HAD 5100 TODAY. WE HAVE TO MOVE UP BASED ONIMPROVING FUNDAMENTALS OR THE MARKET WILL NEED TO DIGESTGAINS AT SOME POINT OVER THE SUMMER AND FALL.I'M OF THE OPINION WE WILL HAVE SOME DIGESTION HERE, IN PARTBASED UPON THE FED MAKING POLICY CHANGES.WE HAVE THIS ELECTION COMING UP.

LATER THIS YEAR.THERE TENDS TO BE VOLATILITY AROUND THAT.THE UNDERLYING FUNDAMENTALS ARE GOOD. WE'VE DONE WELL IN A SHORTTIME. ROMAINE:WITH REGARDS TO THE FED, WE HAVE TO WAIT UNTIL MARCH 20,WHEN THEY TALK FORMALLY AGAIN. WE GIVE MORE EARNINGS INBETWEEN FROM THE REAL TAILORS — THE RETAILERS, ON THE HEALTHOF THE CONSUMER. WHAT ARE YOUR EXPECTATIONS OUTOF MACY'S, BEST BUY, ETC.? PHIL: MACRO DATA, A WEEK AGO, THECHRISTMAS SEASON WAS THE.

WEAKEST WE HAVE SEEN IN FIVEYEARS. RETAIL SALES OVERALL DURINGOCTOBER THROUGH JANUARY WERE UP 2.9%.CHRISTMAS A YEAR AGO WAS UP 7.2%. THAT'S NOT RANDOM. WE SAW THE SAME TRENDS WITHBACK-TO-SCHOOL LAST YEAR, WITH THE EASTER PASSOVER SEASON.THE CONSUMER IS CAUTIOUS AT THE LOW END OF THE WAGE, SKILL ANDWEALTH SPECTRUM. PERSONAL SAVINGS RATES ARE UP.GROWTH IN CREDIT CARD USAGE IS DOWN. CREDIT CARD DELINQUENCIESDOUBLED OVER THE LAST COUPLE.

YEARS.EXCESS SAVINGS ARE DOWN 86% FROM THE PEAK OF THE PANDEMIC.THERE IS LESS SPENDING GOING ON. THAT MANIFESTED IN RETAIL SALES.SONALI: ONE THING I WORRY ABOUT IS HOWMUCH DATA WE GOT AFTER THE QUARTER. YOU MENTIONED JANUARY. SOME OF THIS WON'T BE REFLECTEDIN THE REPORTS. HAS THE CONSUMER SOFTENED SINCETHE QUARTER ENDED? ARE YOU WORRIED THERE IS ACLIFF? PHIL: YES BUT REMEMBER A LOT OFRETAILERS HAVE JANUARY FISCAL.

QUARTERS.SOME OF THE WEEK JANUARY MAY BE IN SOME OF THESE REPORTS.WHEN YOU DRILL DOWN TO THE INDIVIDUAL REVENUE AND EARNINGSNUMBERS OF THE RETAILERS REPORTING HERE AT THE BACKENDOF THE SEASON, SOME OF THE WEAKNESS FROM MACRO DATA SHOULDTRICKLE DOWN TO BOTTOMS UP DATA. SONALI:IS IT A PROBLEM SOME OF THE EQUITY MARKET HAS NOTEXPERIENCED THE SAME TYPE OF GAINS WE HAVE SEEN FOR THEMAGNIFICENT SEVEN OR THE DISPERSION BETWEEN THE RUSSELL2000 AND S&P?.

WHAT WOULD IT TAKE FOR LAGGARDSTO CATCH UP? PHIL: YOU HIT THE NAIL ON THE HEAD. THE MARKET UP 24% FOR THE S&PLAST YEAR BUT THE MAG SEVEN WAS UP 76%.THE OTHER 493 STOCKS ON THE S&P WERE UP 12%.THAT TREND HAS CONTINUED THE FIRST MONTHS OF THE YEAR.NVIDIA WAS PHENOMENAL THE OTHER NIGHT. THEY WERE GREAT.THE STOCKTON PHENOMENALLY WELL. AT SOME POINT, THERE HAS TO BEREVERSION TO THE MEAN. IN A LOT OF WAYS, WHAT'S GOINGON IN THE TECH SECTOR NOW, OVER.

THE LAST YEAR, IS REMINISCENTOF 1999 GOING INTO THE Y2K CALENDAR CHANGEOVER.A LOT OF THOSE COMPANIES HELPED US RESOLVE THE CALENDAR CLIFF. BY THE TIME WE GOT TO MARCH,2000, INVESTORS REALIZED VALUATIONS GOT AHEAD OFTHEMSELVES AND THERE WAS A PAUSE.ONE OF THOSE WILL COME UP THIS SUMMER OR FALL. ROMAINE:PHIL ORLANDO, WE HAVE TO LEAVE IT. 2.5 MINUTES TO GO. STOCKS HAVE BEEN IN THE SAMEPATTERN.

FRACTIONAL LOSSES ON THE NASDAQ.FRACTIONAL GAINS ON THE S&P AND DOW. SONALI:THE LACK OF BREATH AND, THE VOLUMES WE ARE SEEING.WE WILL TALK MORE ABOUT IT. RETAIL VOLUMES HAVE BEENEXUBERANT BUT NOT FOR THE WHOLE MARKET.IT'S JUST FOR A FEW STOCKS. ROMAINE: STILL AN UP WEEK. FULL BREAKDOWN AS WE TAKE YOUTO THE BELL AND BEYOND. ANNOUNCER:BEYOND THE BELL, COMPREHENSIVE COVERAGE OF THE U.S.MARKET CLOSE. ROMAINE:.

TWO MINUTES AWAY FROM THE ENDOF THE TRADING DAY. WE ARE COUNTING DOWN TO THECLOSE. CAROL MASSAR, TIM STENOVEC,WELCOME TO OUR AUDIENCES ACROSS ALL PLATFORMS. A BIT OF AHOLDING PATTERN IN MARKETS. STRONG WEEK ON THE BACK OFYESTERDAY. [LAUGHTER] TIM: A GOOD WAY TO PUT IT. CAROL:FAIR ENOUGH TO TAKE A BREATHER. THE OUTLOOK. ECONOMISTS DROPPING ODDS OF AU.S. RECESSION. WHAT THAT WILL MEAN FORCORPORATE EARNINGS GROWTH.

ROMAINE:WHAT DOES DROPPING THE ODDS MEAN? CAROL: THEY SAY THE ECONOMY ISEXPANDING AT 2.1% ANNUALIZED RATE THIS YEAR. MORE MOMENTUM.TIM: WE ARE NOT HEARING PEOPLE TALKWHO ARE BUSINESS EXECUTIVES, MARKET OBSERVERS, IT'S NOT EVENON THE RADAR ANYMORE. CAROL: THEY ARE MARKING DOWN RECESSIONODDS TO 40%. SONALI: IT'S NOT JUST RECESSION ODDS.IT'S THE STOCK MARKET AND THE BOND MARKET. THE ISSUANCE.

I KNOW THIS IS AN EQUITY MARKETCLOSE, THE AMOUNT OF LARGE-CAP STOCKS THAT HAVE ISSUED ANAMOUNT OF BONDS IN THIS ENVIRONMENT DOES UEC BULLISH– YOU SEE BULLISHNESS AMONG ASSET CLASSES. ROMAINE:MIX DAY FOR THE MARKET BUT A DECIDEDLY UP WEEK FOR SURE.DOW JONES INDUSTRIAL AVERAGE WILL CLOSE THE DAY UP — PARDONMY FRENCH THERE — 10% ON THE DAY.ON THE WEEK IT IS HOLDING ONTO A 1% GAIN.THE S&P 500 WILL FINISH THE DAY HIGHER BY TWO POINTS, RIGHTAROUND THE 5088 LEVEL.

IT DID TRADE ABOVE 5100.THE NASDAQ DID MOVE LOWER ON THE DAY, .3%.ALSO 2000, MODEST GAINS — RUSSELL 2000, MODEST GAINS ONTHE DAY. CAROL: GO AHEAD. SONALI:I WANTED TO TALK ABOUT SECTORS AS WELL.WE HAVE A FEW THAT WERE DOWN ON THE DATE.NOTHING TOO CRAZY, CAROL. CONSUMER DISCRETIONARY AS WELL.UTILITIES, MATERIALS, INDUSTRIALS LEADING THE WAY.YOU DID SEE MORE PARTICIPATION ON THE S&P 500, MARGINALLYHIGHER TO CLOSE THE DAY.

CAROL:LET'S GET TO THE INDIVIDUAL GAINERS.I WOULD BE REMISS IF I DIDN'T BRING NVIDIA INTO THE MIX ONCEAGAIN. ROMAINE: AFTER THAT RALLY TODAY?[LAUGHTER] CAROL: WELL, IT WAS UP ABOUT 5%,FINISHING WITH .4% GAIN. GOOD ENOUGH FOR A RECORD AGAIN.TIM: IF IT'S GREEN, IT IS A RECORD.CAROL: 1.97 TRILLION. ROMAINE:WE WERE ON THE $2 TRILLION MARKET CAP WATCH.IT SEEMS INEVITABLE AT THIS.

POINT. CAROL:IT WAS A DIFFERENT WEEK FOR NVIDIA VS. PALO ALTO.PALO ALTO IS YOUR NUMBER ONE GAINER ON THE S&P 500, TOMKEENE ON THE NASDAQ 100 AS WELL. HAVE YOUR VOLUME BASED ON THEPAST 20 DAYS. WE DID SEE A MOVE UP IN THATNAME. DIDN'T SEE ANY REAL NEWS. I BIG BLOCK TRADE WE SAW COMEACROSS THE TERMINAL. I THOUGHT IT WAS INTERESTINGTHAT WE DID SEE INVESTORS — ROMAINE:THAT IS JUST DIP BUYING. I UNDERSTAND WHAT THAT WAS,THAT WAS OVERDONE. CAROL:.

I AGREE.IT IS NOT LIKE THE STOCK FOR THE COMPANY IS COMING UNDONE.GOT TO MENTION CARVANA. ROMAINE: DO WE? CAROL: OH, COME ON!ROMAINE: ARE THEY STILL AROUND? CAROL: BIGGEST GAIN IN ABOUT TWOYEARS. EBIDTA MARGIN AND GROSS PROFITBEAT THE ANALYST ESTIMATES. INVESTORS, ENTHUSIASM, A BIGRUN UP LAST YEAR'S TRADE. TIM: UP 1000% LAST YEAR! ROMAINE:1000%? TIM: THERE WERE QUESTIONS ABOUTWHETHER THIS WAS GOING TO BE A GOING CONCERN THE YEAR BEFORE.CAROL:.

I GOTTA PULL IT UP, BUT I THINKTHERE WAS A DECENT SHORT POSITION.IT'S A 32% PERCENTAGE OF FLOAT, OUTSTANDING SHARES. TIM:LOOK AT ALL THAT RED NEXT TO YOU, CAROL, THE DECLINER.ROMAINE: WAS THERE A SHOW YESTERDAY?CAROL: GREAT SHOW, BY THE WAY. TIM:I'M GOING TO GET THIS BACK ON TRACK AND TALK ABOUT THE S&P500. THE BIGGEST DECLINER IN THE NEXT, BOOKING HOLDINGS.WE COVER THE EARNINGS OUT TODAY AFTER THE CLOSE.FELL THE MOST IN 20 MONTHS.

THIS AFTER THE COMPANY GAVE ADISAPPOINTING FORECAST FOR TRAVEL RESERVATIONS AND GROSSBOOKINGS. THE WAR IN ISRAEL AND CURRENCYFLUCTUATIONS WEIGHING ON RESULTS FOR THE FULL YEAR.THE COMPANY EXPECTS BOOKINGS TO INCREASE SLIGHTLY FASTER THAN7%. ROMAINE: DIDN'T HE REALLY BLAME THE WARIN ISRAEL? TIM: YEAH, THEY SAID IT KNOCKED ACOUPLE PERCENTAGE POINTS OFF. THIS COMPANY HAS A MUCH BIGGERFOOTPRINT IN EUROPE THAN COMPETITORS. WARNER BROS.DISCOVERY, SECOND WORST.

PERFORMER ON THE S&P 500 ON APERCENTAGE BASIS, HIT AN ALL-TIME LOW.FOURTH-QUARTER REVENUE AND PROFITS FELL SHORT OF WALLSTREET FORECAST AND DECLINING TV AD SALES AND WEAKNESS IN THESTUDIO BUSINESS. HERE IS WHAT DAVID SAYS LOVE –DAIVID ZASLAV SAID, WE CONTINUE TO FACE ONGOING DISRUPTION INTHE PAY-TV ECOSYSTEM AND DISLOCATED LINEAR ADVERTISINGSYSTEM. WE CHALLENGE LEADERS TO FINDINNOVATIVE SOLUTIONS.” CURIOUS WHAT THE SOLUTIONS AREGOING TO BE GIVEN ALL THE.

DISRUPTION IN THE SPACE.RIVIAN, ANOTHER DAY OF SELLING WHAT COMES TO RIVIAN SHARES.DOWN 12%. THIS AFTER ALL 25% YESTERDAY.–AFTER IT FELL 25% YESTERDAY. ANNOUNCED A 10% REDUCTION TOITS WORKFORCE. THIS HAPPENED LATE WEDNESDAY.ROMAINE: LET'S TAKE A LOOK AT YIELDS.VOLATILITY HAS TYPICALLY BEEN INDICATIVE OF THIS MARKET.TAMPED DOWN JUST A LITTLE BIT. GOING TO CLOSE OUT THE WEEKJUST BELOW 4.7, NOT FAR FROM WHERE WE WERE TO START THE WEEK.THE MOVE WE SAW COME UP BASIS.

POINTS ON THE SHORTER END OFTHE CURVE. MORE ACTIVITY THERE. SEVEN BASIS POINTS LOWER ON THE10-YEAR YIELD AND A 8 ON THE 30-YEAR YIELD.YOU GET A SENSE OF WHERE INVESTORS' IS FACE HEADS AREADD. A LITTLE MORE IN TUNE TO WHATWE WERE TALKING ABOUT EARLIER, A REVISION OF ECONOMICEXPECTATIONS. CAROL: WE HAVE TO TALK ABOUT THE WEEKTHAT WAS IN THE ROLE OF NVIDIA. WHAT DO YOU THINK WAS THEBEST-PERFORMING NAME IN THE S&P 500 LAST WEEK?DISCOVER FINANCIAL. ROMAINE:.

OH, OK. TIM:THAT WAS SO TUESDAY. CAROL: THAT WAS SO TUESDAY.EVEN WITH THE BUMP UP, NVIDIA LEADING INTO THE EARNINGSREPORT. IT WAS NEGATIVE SENTIMENTLEADING INTO IT, AND THEN THE BLOCKBUSTER REPORT.I THINK ABOUT NVIDIA — WE WERE TALKING WITH TOM GILES, WHOCOVERS THE BLOOMBERG TECHNOLOGY TEAM, AND THE IMPACT OF AI ORBROADLY. MACHINE LEARNING AND HOW ITCOULD IMPACT SO MANY INDUSTRIES, BUT THEN WE GET THESTORY OF THE INCREDIBLE TIE UP.

OF WELL-KNOWN INDIVIDUALS –AMAZON, NVIDIA, AND OTHERS — IN TERMS OF AI AND ROBOTICSWHICH I FEEL LIKE WE HAVEN'T TALKED A LOT ABOUT, BUT THEPOSSIBILITY OF WHAT IT COULD DO IN TERMS OF OUR SOCIETY.ROMAINE: I WAS OUT AT A SUPPLY CHAINCONFERENCE A COUPLE WEEKS AGO, AND ONE OF THE THINGS THEY WERESHOWING OFF WAS THESE ANIMATRONICS ROBOTS THAT LETBOXES UNLOAD THE CONTAINER. IT'S AMAZING HOW MANY FOLKSWERE SHOWING OFF THOSE THE BIG COMPANIES LIKE BOSTON DYNAMICS,BUT ALSO NAMES LIKE FIGURE AI.

AND SMALLER COMPANIES. TIM:FIGURE AI IS THE ONE WE ARE TALKING ABOUT BECAUSE WE HAD THE STORY THAT BEZOS AND NVIDIAARE INVESTING IN THE COMPANY TO THE GENEVA $2 BILLION VALUATION–TO THE TUNE OF $2 BILLION VALUATION.TO YOUR POINT ABOUT THE SUPPLY CHAIN CONFERENCE, IT MAKESSENSE THAT A PERSON LIKE BEZOS WOULD INVEST IN THIS.IMAGINE WAREHOUSES FOR AMAZON FILLED WITH THESE RATHER THANHUMAN BEINGS. THE COMPANY MAKES THE POINT OFSAYING WE ARE FIGURE AI AND.

WHAT WE ARE INVESTING IN IS THEIDEA THAT THERE IS A LABOR SHORTAGE THAT'S HAPPENING OUTIN THE U.S., BUT AROUND THE WORLD. ROMAINE:NOT TO GET YOU OFF TRACK, BUT SOME OF THE DEMONSTRATIONS,THERE WERE TALKING ABOUT HOW MUCH MORE ADVANCED THETECHNOLOGY HAS GOTTEN. THERE WERE TALKING ABOUT HOW INTHE OLD DAYS, THE ROBOT COULD STICK ITS ARM IN THERE AND PULLSOMETHING OUT. NOW THEY CAN OPEN THE BACK OF ATRUCK OR CONTAINER AND READ OF THE SIZE OF EVERYTHING IN THEREAND DETERMINE THE WEIGHT OF.

EVERYTHING AND PULL EVERYTHINGON OR OFF IN AN EFFICIENT MANNER, MUCH MORE EFFICIENTTHAN WHAT TIM STENOVEC — TIM: GAINERS AND DECLINERS? THAT'S RIGHT 1 — CAROL: THEYDEFINITELY — [LAUGHTER] CAROL: ALL RIGHT, WE ARE SAFE UNTILALL OF THIS COMES TO FRUITION. DON'T FORGET, BERKSHIRE ANNUALREPORT AND THE SHAREHOLDER LETTER FROM MORAN BUFFETT.– WARREN BUFFETT THAT WILL HAPPEN TOMORROW.GET UP, GET A CUP OF COFFEE, RITA TOMORROW. ROMAINE:WILL YOU HAVE FULL COVERAGE.

THAT TOMORROW? CAROL:AT HOME WITH MY PUPPIES. [LAUGHTER] HAVE A SAFE WEEKEND. THAT IS A WRAP UP OURCROSS-PLATFORM RADIO, TV, AND BLOOMBERG ORIGINALS.SAME TIME, SAME PLACE MONDAY. ROMAINE:WELCOME BACK TO BLOOMBERG TELEVISION.WE CONTINUE OUR COVERAGE HERE, AND IT IS FACTOR FRIDAY.WE WILL BREAK DOWN THE FACTORS WITH CHRIS KANE OF BLOOMBERGINTELLIGENCE. THAT IS COMING UP NEXT ONBLOOMBERG. ♪.

SONALI:WELCOME BACK TO “THE CLOSE.” I'M SONALI BASAK ALONGSIDEROMAINE BOSTICK. HE THINKS AFTER THE MARKETCLOSE. YOU HAVE TO TAKE A LOOK ATJUST HOW MUCH EXUBERANCE WE HAVE AND WHO PARTICIPATED.I TALKED TO CITADEL SECURITIES AND THEY TOLD ME WHAT THEY WERESEEING IN TERMS OF AVERAGE DAILY VALUE OF VOLUMES OFSHARES TRADED ACROSS THE BROADER MARKET.WHAT WAS INTERESTING WAS THAT IT WAS ACTUALLY DOWN IN THEDAYS BEFORE AND AFTER THAT.

NVIDIA REPORT FOR THE BROADERMARKET. NVIDIA ALONE WAS UP 25%. IT GOES WITH THE NARRATIVE THATIT IS SINGLE STOCK THAT INSTITUTIONS WERE TARGETING ATA GREATER SCALE, AND INSTITUTIONS WERE FOLLOWINGTHEIR LEAD. ALSO WHEN WE TALK ABOUTBREADTH, I WANT TO SHOW YOU THE EQUAL WEIGHTED INDEX OF THE S&P500. YOU THINK ABOUT U.S. EXCEPTIONALISM AND HOW FAR THEMARKET HAS FLOWN. WHEN YOU LOOK AT THE S&P 500,EQUAL WEIGHT IS FALLING BEHIND THE STOXX 600 WHEN YOU LOOK ATIT IN TERMS OF HOW YOU ARE.

DOING MORE BROADLY IN THEMARKET. IT IS NOT AS ROSY AS YOU WOULDINITIALLY THINK. I ALSO WANT TO LOOK AT IT INONE OTHER WAY. I WANT TO LOOK AT IT FORSMALLER AND MID-CAP STOCKS, AND THE RUSSELL 1000 VALUE VERSUSGROWTH INDEX. CHECK OUT THE DIVERGENCE YOUARE SEEING HERE. OVER THE PAST YEAR YOU ARESEEING GROWTH INDEX RISE TO 42%. BUT THE VALUE INDEX REALLYLAGGED BEHIND. THERE ARE PERIODS WHERE YOUSOME MORE DIVERGENCE THAN.

OTHERS. VALUE HAS NOT CAUGHT UP.THEY HAVE NOT YET SEEN THOSE GAINS. ROMAINE:CLOSER LOOK AT MARKET MOVES WE SAW THIS WEEK.LET'S GO A LITTLE BIT UNDER THE HOOD AT WHAT DROVE SOME OFTHOSE MOVES. IT IS FACTOR FRIDAY WITHEQUITIES BANDAGES FOR BLOOMBERG INTELLIGENCE.– THE EQUITY STRATEGIST FOR BLOOMBERG INTELLIGENCE.ONCE AGAIN, ANOTHER WEEK WHERE WE SAW YIELDS MOVE HIGHER. >> WE HAVE BEEN EXPECTING THECORRELATION BETWEEN STOCKS AND.

BONDS.IT IS PRETTY INTERESTING NOW. THE FIRST THING YOU HAVE TOKNOW IS THAT THE CORRELATION IS VERY HIGH.THE CORRELATION BETWEEN THE S&P 500 AND LONGER-DURATIONTREASURIES IS VERY HIGH FOR THE INTERMEDIATE TERM.TREASURY INDEX AND S&P 500 IS LOWER BUT POSITIVE.TO PUT THAT INTO PERSPECTIVE, WHEN YOU LOOK AT THE AVERAGECORRELATION FOR STOCKS AND BONDS, IT IS BASICALLY ZERO.IT IS VERY HIGH RIGHT NOW. YOU SEE TWO BIG REGIMES.

YOU SEE 1970 TO 2000, GENERALLYHIGHER CORRELATION BETWEEN STOCKS AND BONDS, AND 2020,GENERALLY LOWER. LAST COUPLE YEARS HAVE BEENHIGHER AGAIN. SONALI: DO YOU THINK IT DECREASES THATCORRELATION? WHAT WOULD CAUSE IT TO DO THAT?CHRIS: I DO, SONALI. THE THING THAT CORRESPONDS THEMOST WITH THE STOCK-BOND CORRELATION IS GENERALLYINFLATION. WHEN INFLATION IS HIGH, YOU SEETHE STOCKS AND BONDS BE CORRELATED.YOU SAW THAT IN THE 1970'S.

AND THEN WHEN INFLATION ISLOWER, YOU SEE THE CORRELATION BE ZERO TO NEGATIVE.AS YOU KNOW, CPI, WE HAVE GONE FROM 9% IN JUNE 2020 TO 3.1%.IF YOU GO PAST THE 3% LEVEL, THAT CORRESPONDS WITH A LOTLOWER CORRELATION BETWEEN STOCKS AND BONDS.THAT AND THE FACT THAT IT IS SO HIGH RIGHT NOW MAKES ITSOMETHING THAT IS GOING TO DECREASE. ROMAINE:WHAT IS THE IMPLICATION OF THAT? CHRIS:THE BIGGEST IMPLICATION WOULD BE THE STANDARD INVESTOR, YOURSTANDARD 60-40 INVESTOR,.

EVERYONE WHO INVESTS IN STOCKSAND BONDS. SOMETIMES IT DOESN'T FEEL GOOD,BUT HAVING A LOW CORRELATION BETWEEN STOCKS AND BONDS HASDIVERSIFICATION WORK FOR YOU AND DECREASES THE RISKS TO YOURPORTFOLIO. IF YOU CHANGE THE CORRELATION BETWEEN HE ASSUMED .4 TO .2,THAT DECREASES THE VOLATILITY BY 11% TO 9%.IT DOES HAVE A PRETTY BIG IMPLICATION FOR THOSE INVESTORS.ROMAINE: CHRIS CAHIN, WHO ALWAYS HAS HISPULSE ON WHAT IS MOVING THE.

MARKET.THAT IS MOVING THE MARKETS AND THERE IS GOING TO BE A LOT OFDISCUSSION THE NEXT FEW DAYS ABOUT WHAT IS MOVING THE NEEDLEIN POLITICS. VOTERS WILL BE HITTING THEPOLLS IN SOUTH CAROLINA TOMORROW IN THE U.S.FOR THE REPUBLICAN PRIMARY. NIKKI HALEY IS FACING FORMERPRESIDENT DONALD TRUMP IN THE STATE TO USE TO GOVERNOR,A –SHE'S TO RUN AS GOVERNOR, A STATE IN WHICH SHE IS TRAILINGTHE FORMER PRESIDENT BY 25 PERCENTAGE POINTS.THE FORMER HEAD OF PUBLIC.

POLICY AT INVESCO JOINS US FROMWASHINGTON, D.C. FOR I GUESS A PREVIEW OF WHATTO EXPECT. SHOULD I EXPECT ANYTHING OTHERTHAN NIKKI HAVING IT HANDED TO HER OVER THE WEEKEND? >> I THINK YOU HAVE HIT THEMAIN POINT HERE. SHE MAY BE THE FORMER GOVERNOR,BUT THIS IS TRUMP COUNTRY. SOUTH CAROLINA IS TRUMPCOUNTRY, AND I THINK HE IS GOING TO SHOW IT.THE POLLS WILL REFLECT WHAT HAPPENS.THERE IS ONE CHANCE FOR HER,.

AND THAT IS THAT THERE AREINDEPENDENTS AND DEMOCRATS WHO MAY VOTE FOR HER AND TIP THESCALES AND GETTING CLOSER. EVEN IF SHE WINS SOUTHCAROLINA, SHE HAS TO MOVE INTO SUPER TUESDAY WHERE THAT ISREALLY STACKED IN TRUMP'S FAVOR. ROMAINE:LET'S TALK ABOUT SUPER TUESDAY ON MARCH 5.I'M CURIOUS WHAT IS NIKKI HALEY'S LONG GAME NOW.IT IS CLEAR IN THE POLLS SHE IS TRAILING TRUMP IN EVERY STATETHAT MATTERS HERE. BUT SHE'S MADE IT CLEAR THATSHE CONTINUES TO RAISE MONEY.

AND SHE WILL CONTINUE TO STAYIN THIS RACE. WHY? >> WELL, I THINK THE NUMBER ONEREASON IS SHE HAS THE MONEY. SHE HAS CLEARLY GOT BACKERS WHOWANT HER TO STAY IN TILL THE END.AS LONG AS THOSE BACKERS HAVE ENOUGH MONEY TO KEEP HER IN,SHE WILL BE IN. OTHER THAN THAT, I'M NOT REALLYSURE WHAT THE RATIONALE IS, UNLESS SHE THINKS SOMETHING MAYHAPPEN TO TRUMP ALONG THE WAY. MAYBE HE IS CONVICTED IN COURTAND CAN NO LONGER RUN. I DON'T SEE A CONVICTIONSTOPPING HIM FROM RUNNING.

THERE IS NOTHING IN THECONSTITUTION THAT PREVENTS IT AND I'M NOT SURE THE REPUBLICANNATIONAL COMMITTEE WOULD REJECT HIM IF HE HAS THE MOSTDELEGATES. SONALI: ON ONE HAND WE ARE WATCHINGTHESE NEAR-TERM PRIMARIES, SUPER TUESDAY, BUT WHEN YOUTHINK OF A LONGER-TERM, WE ARE TALKING TO INVESTORS ABOUT WHAT2025 MIGHT LOOK LIKE IF YOU FACE OF TRUMP PRESIDENCY.HOW ARE YOU TALKING TO INVESTORS ABOUT THE RISKS UNDERA SECOND TERM? ANDY: SO, HISTORICALLY WE HAVE ALWAYSSAID IF YOU LOOK HISTORICALLY,.

THERE IS NO REAL DIFFERENCE WHOIS THE PRESIDENT AS FAR AS THE MARKET.IF YOU ARE IN THE MARKET, YOU NEED TO STAY IN THE MARKETBECAUSE YOU MIGHT MISS REALLY BIG DAYS.THE BIGGEST DIFFERENCE WILL BE VOLATILITY.UNDER TRUMP THERE WOULD BE MUCH MORE VOLATILITY DOMESTICALLYAND SOME OF THE STATEMENT HE MAKES AND THE MARKET MAY MOVE,BUT OVERALL I'M NOT YOUR CHANGES THE TRAJECTORY.INTERNATIONALLY THERE WILL BE A LOT OF VOLATILITY, WHETHER ITIS OUR RELATIONSHIP WITH CHINA,.

RELATIONSHIP IN THE MIDDLEEAST. WITH BIDEN IT WOULD BE MORE MEASURED.AS FAR AS THE MARKET, WE DON'T SEE THE MACRO MOVE OF THEMARKET CHANGE. IT WOULD BE MICRO MOVES IN ADAY OR TWO. SONALI: HOW DO YOU THINK ABOUTGOVERNMENT SPENDING UNTIL THE ELECTION HERE?COMING OUT OF THE SOUTH CAROLINA ISSUES YOU ARE SEEINGOVER THE WEEKEND, POTENTIAL QUESTIONS ABOUT THE RACEITSELF, YOU DO SEE QUESTIONS RUN GOVERNMENT FUNDING AS WELLAS A FLOOD OF ISSUANCE JUST.

NEXT WEEK.DO YOU THINK BOND MARKETS CAN START TO GET CHOPPY GIVEN THATTHERE IS NO IMPETUS TO REIN IN SPENDING JUST BEFORE ANELECTION? ANDY: I THINK THAT'S A GOOD POINT.COUPLE THINGS NEED TO HAPPEN FOR THERE TO BE PRESSURE TOHAVE A GOVERNMENT MOVE TOWARDS DEFICIT REDUCTION.NUMBER ONE, THE ONLY RECIPE FOR DEFICIT REDUCTION GOING INTOTHE NEW YEAR WOULD BE IF THERE IS A SPLIT GOVERNMENT.I DON'T SEE ALL REPUBLICAN OR ALL DEMOCRATIC GOVERNMENT WITHTHE PRESIDENT, HOUSE AND SENATE.

IN ONE PARTY, HAVING THEDISCIPLINE TO REDUCE SPENDING. HOWEVER, SPLIT GOVERNMENT,THERE IS TENSION ENOUGH, AND THAT COMBINED WITH POLLINGNUMBERS, WHICH WOULD MATCH THAT, IT IS A TOP NUMBER WHERETHE LAST TIME WE SAW THAT WAS 2010, 2011, OVER 60%.RIGHT NOW IT IS 50. IT HAS MOVED UP FROM 40, BUTONLY 50%. IF WE GET TO 60%, MAYBE THEREIS ENOUGH MOVEMENT. ROMAINE: I WANT TO GET YOUR THOUGHTS OFMIKE JOHNSON AND HIS SHEPHERDING OF THE PARTY IN THEHOUSE AS A WHOLE.

WE ARE FACING ANOTHER BUDGETDEADLINE A WEEK FROM TODAY, AND AT LEAST BASED ON THE LASTVOTES OR LACK OF VOTES, IT DOESN'T APPEAR HE HAS ACOMPLETE HANDLE ON HIS CAUCUS. ANDY:YES, ROMAINE, THERE IS A LOT OF REPORTING OUT OF THE LEADERSHIPRETREAT ARE PEOPLE LIKE THE FACT THAT HE LISTENS BUT THEYARE LOOKING FOR LEADERSHIP. THE PROBLEM YES IS THE SAMETHAT FORMER SPEAKER MCCARTHY HAD, THAT THERE ARE A NUMBER OFPEOPLE IN HIS CONFERENCE WHO WILL ESSENTIALLY DO A MOTION TOVACATE THE CHAIR AND REMOVE HIM.

AS SPEAKER IF HE DOESN'T DOEXACTLY WHAT THEY WANT. PART OF WHAT THEY WANT HIM TODO IS NOT PUT ON THE BUSINESS SPENDING BILL ON THE FLOOR, NOTDO A SUPPLEMENTAL FOR ISRAEL, UKRAINE, AND TAIWAN, THINGSTHAT NEED TO HAPPEN. HE IS IN A TOUGH SPOT. SONALI:ANDY, NICE TO SEE YOU, HAPPY FRIDAY TO YOU.HEAD OF PUBLIC POLICY AT INVESCO. NOW TO GLOBAL POLITICS.TOMORROW MARKS TWO YEARS SINCE RUSSIA INVADED UKRAINE, ANDBLOOMBERG GIVES AN UPDATE ON WHAT HAS CHANGED IN UKRAINESINCE THE START OF THE WAR.

>> TWO YEARS ON SINCE RUSSIALAUNCHED ITS WIDESPREAD INVASION OF UKRAINE, THE U.N.HAS RECORDED 6.3 MILLION REFUGEES, WITH OVER 3.7 MILLIONPEOPLE INTERNALLY DISPLACED. BUT THERE HASN'T BEEN MUCHMOVEMENT IN TERMS OF TERRITORY GAINED AND LOST. THE LANDOPERATION HAS NOT DELIVERED LONG-TERM SUCCESS. IN CONTRAST TO THE BACKSEAT,WHERE KYIV HAS MANAGED TO UNLIKE PART OF THE SEA ROUTESFOR EXPORTS. IN A BID TO TURN THE TIDE OFWAR, UKRAINE HAS CHANGED ITS.

COMMANDER IN CHIEF, PRESIDENTZELENSKYY SELECTING THE FORMER HEAD OF THE GROUND TROOPS TOLEAVE THE ARMED FORCES. MILITARY AID CONTINUES TO FLOWINTO THE COUNTRY, WITH THE U.S. COMMITTING OVER $44 BILLION,DWARFING THE U.K. AND EU FIGURES.BUT CHANGING ATTITUDES TO SUPPORT FOR UKRAINE IS A KEYRISK FOR THE NEXT 12 MONTHS. IN A U.S.ELECTION YEAR, FORMER PRESIDENT DONALD TRUMP AND REPUBLICANPARTY MEMBERS ARE QUESTIONING HOW MUCH LONGER THE U.S.CAN CONTINUE TO SUPPORT UKRAINE.

FINANCIALLY.ALL OF THIS AS RUSSIA HAS BECOME EMBOLDENED ANDRE-INTENSIFIED ITS CAMPAIGN IN THE EAST OF THE COUNTRY.ROMAINE: A LOOK BACK THERE AT WHAT IT ISGOING TO BE TOMORROW, THE TWO-YEAR ANNIVERSARY OF THESTART OF THE LATEST WAR IN UKRAINE.WHEN WE COME BACK AFTER THE COMMERCIAL, WE WILL LOOK ATANOTHER BIG MILESTONE, BACK IN 1972 AND NIXON'S GAMBLE ONCHINA AND THE ECONOMIC BOOM THAT WAS SEEDED BY HISUNPRECEDENTED VISIT.

WHILE WE KNOW THAT THE U.S.IS THE LARGEST TRADING PARTNER AMONG COUNTRIES, WHAT COMPANYIMPORTS THE MOST GOODS FROM THE ASIAN NATION? THIS IS BLOOMBERG. ROMAINE: WELCOME BACK.IT WAS ON THIS WEEK BACK IN 1972 WHEN AIR FORCE ONE TOUCHEDDOWN IN BEIJING AND RICHARD NIXON BECAME THE FIRST SITTINGU.S. PRESIDENT TO SET FOOT IN MAINLAND CHINA.IT WAS AN AUDACIOUS VISIT THAT BROKE, WELL, SEVERAL DECADES OFHOSTILITY AND WOULD SHAPE U.S.-CHINA RELATIONS FORDECADES TO COME.

MARGARET MCMILLAN'S BOOK “THEWEEK THAT CHANGE THE WORLD” DEPICTED A TRIP THERE WAS MORECOKE AND DAGGER, THAT NIXON HAD BEEN PLANNING SECRETLY FOR TWOYEARS. NIXON'S AGENDA LARGELY FOCUSEDON NATIONAL SECURITY INTEREST SUCH AS CONTAINING THE SOVIETUNION AND THE WAR IN VIETNAM. IT WAS LESS GEOPOLITICS ANDMORE MACROECONOMIC. TRADE AND ECONOMIC ISSUESWEREN’'T ON THE AGENDA AT ALL. WHY SHOULD IT HAVE BEEN?THE LEADER OF THE THEN $1 TRILLION ECONOMY BREAKING BREADWITH THE LEADER OF AN ISOLATED.

NATION WITH $4.5 BILLION INFOREIGN TRADE? WHETHER INTENTIONAL OR NOT, THEFOCUS ON MILITARY ISSUES ALTITUDE TAMP DOWN CONFLICT INTHE REGION, WHICH PAVED THE WAY FOR A MULTI-DECADE ECONOMICBOOM IN EAST ASIA, BUILT ON THE BACK OF FOREIGN TRADE.CHINESE FOREIGN TRADE THAT BALLOON FROM $4.5 BILLION INTHE 1970'S TO MORE THAN $6 TRILLION TODAY.TO PUT A FINER POINT ON IT, AND BECAUSE MY QUESTION, WALMART,THE U.S.-BASED RETAILER, ENDED UP DOING MORE TRADE WITH CHINATHAN ANY OTHER CORPORATION.

WALMART IMPORTS SO MANY GOODSTHAT IF HE WERE A COUNTRY INSTEAD OF A COMPANY, IT WOULDBE A BIGGER CHINESE TRADING PARTNER THAN CANADA ORAUSTRALIA. THE ROAD NIXON HELPED PAVE HASBEEN POCKMARKED BY THE COMBATIVE STANCE OF U.S.PRESIDENT DONALD TRUMP AND THE MORE STRINGENT POLICIES ANDSENTIMENT BY THE BIDEN ADMINISTRATION. THE LOWERING OF TRADE BARRIERSHAS FLIPPED INTO A YEARS LONG INCREASE IN TRADE TARIFFS ANDBANS ON U.S.

COMPANIES FROM TRANSACTING WITHCOMPANIES LIKE HUAWEI AND ZTE. CHINA'S LEADERSHIP IS MAKING AFRESH PUSH TO MEND FENCES AND BOOST FOREIGN INVESTORCONFIDENCE IN THE COUNTRY. CCTV REPORTED ON FRIDAY THATTHE CHINESE PREMIER LETTER CABINET MEETING THAT LOOKED ATMEASURES TO ATTRACT MORE GLOBAL CAPITAL, A MEANINGFUL EFFORT TOSTEM DIRECT INVESTMENT FROM FOREIGN BUSINESSES, WHICH LASTYEAR HIT THE LOWEST LEVEL SINCE THE EARLY 1990'S.WE WILL BE BACK IN A MOMENT. THIS IS BLOOMBERG. ♪.

ROMAINE:IT IS TIME FOR OUR NEXT UP A SEGMENT WHERE WE HIGHLIGHTENTREPRENEURS, FOUNDERS AND THE PEOPLE WHO FUND THEM WHO AREMOVING THE NEEDLE FOR THE ECONOMY, MARKETS AND TECHNOLOGY.OUR NEXT GUEST IS USING HIS EXPENSE TO HELP VULNERABLECOMMUNITIES GET ACCESS TO DIGITAL BANKING SERVICES.HE IS THE PRESIDENT OF MACIEL AND FOUNDER OF — PRESIDENT ANDFOUNDER OF MOBILITY CAPITAL. YOU HAD A LONG CAREER ON WALLSTREET. YOU LEFT THAT BEHIND TO STARTTHIS COMPANY, WHY?.

>> I WAS INSPIRED AFTER THEMURDER OF MICHAEL BROWN AND I WANT TO USE MY EXPERIENCE TOUPLIFT COMMUNITIES AND BRING A PATH TO FINANCIAL OPPORTUNITIESFOR COMMUNITIES THAT HISTORICALLY HAVE BEEN LEFT OUT.ROMAINE: THAT'S A LAUDABLE GOAL, IS IT ABUSINESS PLAN? WADE: ABSOLUTELY, YOU GOT TODEMONSTRATE THE ABILITY TO MAKE MONEY IN A SUSTAINABLE WAYWHILE SOLVING A REAL PROBLEM. AS WE HAVE MARKET FAILURE WHEREWE HAVE SO MANY MILLIONS OF FAMILIES IN THIS COUNTRY THATDON'T HAVE ACCESS TO BANK.

ACCOUNTS AND HIGH-QUALITYPAYMENT SERVICES, WE WANTED TO CREATE THAT BUSINESS AND ITHINK WE HAVE AN INTERESTING STRATEGY. SONALI:IS IT THE SYSTEM ITSELF THAT IS FAILING OR THE LACK OF THEABILITY OF COMPANIES TO REACH MORE COMMUNITIES? WADE: I THINK SO MANY COMPANIES HAVEINTEREST IN TRYING TO MOVE PEOPLE FORWARD.ONE OF THE THINGS WE FOUND IS A SIGNIFICANT AMOUNT OF RESOURCESHAVE BEEN ALLOCATED FOR LOW INCOME COMMUNITIES THAT AREN'TGETTING TO INDIVIDUALS.

IF WE CAN HELP CITIES, STATES,THE FEDERAL GOVERNMENT, NOT PER PROFITS AND OTHERS TO GET THIS,THEY CAN MOVE FORWARD ON THE ECONOMIC LADDER. IT'S A WIN FOR EVERYBODY AND WECAN DO IT IN A WAY THAT MAKES MONEY AS WELL. SONALI: THERE IS A HIGH-PROFILE PROGRAMIN YEARS — NEW YORK CITY WHERE MIGRANTS WERE SUPPOSED TO GETDEBIT CARDS, BUT IT HAS RECEIVED A LOT OF PUSHBACK.HOW DO YOU FEEL ABOUT THE PUSHBACK AND HOW IF YOU BEENADDRESSING IT ?.

>> I DON'T WANT TO GET INTO THEPOLICY SIDE OF THINGS, THAT'S A CONVERSATION YOU CAN HAVE WITHTHE MAYOR. WE HAVE A PROCESS, WE CAN PUT RESOURCES IN THE HANDS OF INDIVIDUALS BY A DEBITCARD, IT IS LESS EXPENSIVE FOR THE CITY, THESE ARE TAX DOLLARSBEING SPENT ANYWAY. AND IT ALLOWS THEM TO PURCHASEFOOD APPROPRIATE FOR THEIR DIETS OR PALLETS, AND AT THESAME TIME PUTS MONEY BACK INTO THE ECONOMY. IT'S A GREAT EXAMPLE OF WHY WEEXIST BECAUSE IT FULFILLS A.

POLICYOBJECTIVE AND IMPROVING THE LIVES OF AN INDIVIDUAL. ROMAINE:I UNDERSTAND THE BENEFIT OF GOING DOWN THAT ROAD BUT DOESTHIS PAVE THE WAY FOR A LONGER-TERM RELATIONSHIP WITHTHESE FOLKS? YOU MENTIONED THIS IS TAXPAYERMONEY, COMING OUT OF GOVERNMENT POCKETS, OUR POCKETS IF YOUWILL, ON PEOPLE WHOSE FUTURE WE DON'T KNOW ABOUT. WOLE:THE MONEY IS BEING SPENT ANYWAY, THE TAX DOLLARSUPPORTING THE OVERALL WELL-BEING OF PEOPLE WHO HAVECOME TO THE COUNTRY SEEKING.

ASYLUM. OUR OPPORTUNITY IS A COMPANY ISTO ENSURE THOSE INDIVIDUALS ARE ABLE TO HAVE BETTER CHOICE ANDPUT MONEY BACK INTO THE ECONOMY, WHICH IS BETTER FORALL OF OUR TAXPAYING DOLLARS, AND AT THE SAME TIME ALLOWS THECITY TO BE MORE EFFICIENT AND SAVE THOSE TAXPAYER DOLLARS TOBE USED FOR OTHER PURPOSES. I THINK THE REAL INTERESTINGOPPORTUNITY IS NOT ONLY ARE WE HELPING THIS SEGMENT OF THEPOPULATION BUT REIMAGINING GETTING FINANCIAL SERVICES TOALL COMMUNITIES, WHETHER IT IS.

FOLKS WHO ARE ELDERLY WHO DON'THAVE BANKS. ONE OF THE THINGS WE HAVE TOREMEMBER IS 80% OF THE BANK BRANCHES IN THE COUNTRY HAVECLOSED IN LOW TO MODERATE INCOME COMMUNITIES. IMAGINE THE FINANCIAL CAPITALOF THE WORLD HAVING UNBACKED INDIVIDUALS, WE ARE BETTER THANTHAT AND MOCAFI HAS DEMONSTRATED A PATH FORWARD.ROMAINE: HOW FAR AWAY DOWN THE PATH?I'VE HAD THIS CONVERSATION IN DECADES PAST ABOUT FOLKS WHODON'T HAVE ACCESS.

OVER THE YEARS WE'VE HAD A FEWCOMPANIES THAT CROPPED UP LOOKING TO SOLVE THE PROBLEM.SOME OF THOSE ARE NOT AROUND ANYMORE. WOLE: ABSOLUTELY.WONDERFUL THING ABOUT TECHNOLOGY OVER THE DECADES ISIT ALLOWS US TO REIMAGINE PROVIDING A LOW-COSTINFRASTRUCTURE. AS I MENTIONED BEFORE, THEREARE A SIGNIFICANT AMOUNT OF RESOURCES, JUST IN NEW YORKCITY ALONE, $5 BILLION LEFT ON THE TABLE EVERY YEAR FOR LOWAND MODERATE INCOME NEW YORKERS. ROMAINE:WHEN YOU SAY LEFT ON THE TABLE,.

MONEY THAT WOULD HAVE BEENSPENT? WOLE: MONEY THAT HAS BEEN ALLOCATED. THERE ARE 800,000 NEW YORKERSELIGIBLE FOR THE REDUCED FARE PROGRAM AND ONLY 250 THOUSANDPEOPLE TAKE ADVANTAGE OF THE PROGRAM.THE METRO CARD IS GOING AWAY BY THE END OF THE YEAR AND IT WILLBE REPLACED BY PEOPLE WHO HAVE BANK ACCOUNTS SO IF YOU ARE ONEOF THE NEW YORKERS, THE 10% OR 12% OF NEW YORKERS IN SOMENEIGHBORHOODS WHO DON'T HAVE A BANK ACCOUNT AND YOU ARESUPPOSED TO RELY ON THIS.

PROGRAM, HOW DO YOU TAKEADVANTAGE OF THAT? ROMAINE: HAVE YOU TALKED TO THE CITY ORANY OTHER AUTHORITIES ABOUT BEING PART OF THAT WHEN THETRANSITION TAKES PLACE? WOLE: WE ARE TALKING TO EVERYBODY WHOWILL LISTEN, FROM THE CITY, TO GROUPS TO MAKE SURE THEY AREAWARE THERE ARE ALTERNATIVES FOR PEOPLE TO TAKE ADVANTAGE OFTHE RESOURCES THE CITY HAS AVAILABLE. WOLE: — ROMAINE: ARE YOU IN TALKS WITH OTHERGOVERNMENT AGENCIES OUTSIDE NEW YORK STATE? WOLE:WE ARE SO EXCITED, WE'VE BEEN.

WATCHING WITH — WORKING WITHLOS ANGELES CITY AND COUNTY, BIRMINGHAM, SAN DIEGO.WE ARE IN OVER A DOZEN CITIES ACROSS THE COUNTRY BECAUSEPEOPLE UNDERSTAND AND SEE IF YOU REIMAGINE TECHNOLOGY YOUCAN MOVE COMMUNITIES FORWARD IN WAYS WE HAVEN'T DONE IN THEPAST. ROMAINE: REALLY APPRECIATE YOU TAKINGTIME FOR US. THE PRESIDENT, CEO AND FOUNDEROF MOBILITY CAPITAL FINANCE. SONALI:WE WILL LOOK AT HOW MARKETS CLOSED, IT WAS A STELLAR WEEK,AND A MUTED DAY.

S&P 500 ROUGHLY FLAT ON THE DAYBUT STILL SLIGHTLY IN THE GREEN. THE 10 YEAR YIELD THAT DOWN TO425. THE DOLLAR, WE ALSO WATCHED AFALL BACK INTO THE DOLLAR AS WELL. CRUDE LOWER ON THE DAY, JUSTBELOW THE $77. THIS IS “THE CLOSE.” ♪ ROMAINE:AN OPTIMIST'S GUIDE TO THE PLANET, THE LATEST EPISODEFOCUSING ON PLASTICS. LESS THAN 2% OF PLASTIC WASTEIS RECYCLED GLOBALLY — LESS.

THAN 10% OF PLASTIC WASTE ISRECYCLED GLOBALLY. BUT THERE MAY BE A SOLUTION. >> AT FIRST GLANCE IT SEEMSLIKE THE WORMS ARE JUST EATING THEIR WAY OUT OF THE BAG BUT ACLOSER LOOK SHOWS SOMETHING IN THE WARM SALIVA NATURALLYDEGRADES THE PLASTIC. >> HERE WE TRY TO PRODUCE ENZYMES. YOU CAN USE BACTERIA OR YEAST.WE TRIED ENZYMES ON PLASTICS AND THEY DEGRADED.

FOR THE TIME BEING IT ISEXPENSIVE, SO WE HAVE TO WORK ON THAT, BUT JUST THINK, WEHAVE ENZYMES. >> WITH A PARTNER, SHE FOUNDEDA COMPANY TO DEVELOP SOLUTIONS BASED ON THE DISCOVERY. ROMAINE:THE PERSON NIKOLAI WAS SPEAKING TO IS WITH US NOW.THE MAIN TECHNOLOGY INVOLVES THOSE WORMS. IS THE MYTH AROUNDTHIS TRUE? THAT SAYS THAT YOU WERE LOOKINGAT A BEEHIVE OR SOMETHING, YOU PICKED UP SOME WORMS COME UPWITH THEM IN A PLASTIC BAG AND NOTICED LATER THERE WERE HOLESON IT?.

>> ACTUALLY YES.THAT'S HOW IT HAPPENED. IT WAS THERE IN MY MIND.UNFORTUNATELY THEY ALL DIED OVER THE YEARS, SO WHEN ISTUMBLED ON THESE IT WAS BY CHANCE. ROMAINE: WHAT DO WE KNOW ABOUT THEENZYMES, THE CHEMICALS THE WORMS ARE PRODUCING THAT LEADSTO THE BREAKDOWN OF PLASTIC? >> THAT'S THE KEY QUESTION,WHAT ARE THE METHODS BEHIND THAT?WE ARE STARTING IT, WE DON'T KNOW THAT MUCH.THERE ARE LOTS OF ENZYMES IN.

THE SALIVA OF THE ANIMAL, SOTHEY CAN USE IT AND SPIT IT OUT FOR WHATEVER REASON, WE ARESTUDYING HOW THEY ARE ABLE TO DO THAT. WE DON'T KNOW EIGHT YETACTUALLY. SONALI: YOU ALLUDED TO THE COST TIED TODOING THIS AT SCALE. HOW LONG WOULD IT TAKE TOMITIGATE THOSE COSTS AND CREATE A SYSTEM THAT CAN DO THIS AT ABIGGER RATE? >> IT DEPENDS VERY MUCH ON HOW MANY PEOPLE WORK ON THAT, ITDEPENDS ON HOW WE PROCEED. USUALLY IT'S HOW MONEY PEOPLEYOU CAN PUT ON IT IN A SHORT.

AMOUNT OF TIME. I CANNOT ANSWER THAT.I HOPE AS SOON AS POSSIBLE BECAUSE WE ARE TRYING TO REACHA GOAL. SONALI: HOW MUCH INTEREST ARE YOUGETTING? BRING US INTO THE CONVERSATIONSABOUT THE PEOPLE NOTICING YOU DOING THIS WORK AND CATCHINGONTO THE IDEA THAT IT COULD REDUCE A LOT OF WASTE IN MANYGEOGRAPHIES AROUND THE WORLD. >> SO IT'S NOT THAT EASY.BECAUSE FUNDING IS THE MOST DIFFICULT PART.

IT'S NOT EASY BECAUSE THEINDUSTRY AROUND PLASTICS IS NOT RECEPTIVE TO RECYCLING BYDEGRADATION. WE THINK THAT WILL CHANGE, ITIS A FIELD THAT IS INCREASING. I THINK WE CAN WORK TOGETHERBUT WE ARE NOT THERE YET IN TERMS OF INTEREST. WE AREGETTING THERE HOPEFULLY. ROMAINE:WILL WE GET THERE FAST ENOUGH? I'VE SEEN SOME STATISTICS THATSHOW THAT GLOBALLY WE ARE ONLY RECYCLING LESS THAN 10% OFPLASTICS. I ALSO SAW THE AMOUNT OFPLASTIC WE ARE PRODUCING,.

SOMETHING LIKE 450 MILLION TONSA YEAR WILL GO UP TO ONE BILLION IN THE NEXT FEW YEARS.THERE IS A LOT OF CATCH UP WE HAVE TO DO. >> THE PRODUCTION FOR 2050, YOUARE RIGHT. RECYCLING, 10% OR LESS.IT'S NOT REALLY WORKING AS WE WOULD LIKE.THERE ARE MANY SOLUTIONS OUT THERE. WE NEED TO MAKE AN EFFORT,EVERYBODY, WHATEVER SOLUTION IS ON THE HORIZON, WE NEED TO INCREASE.

ROMAINE:ONE GREAT THING ABOUT THIS DOCUSERIES IS THE OPTIMISTPART, THE EFFORT TO REACH OUT TO THE PEOPLE, AND THESCIENTISTS WHO SEE THE PROMISE OF HUMAN BEINGS BEING MORE INSYNC WITH OUR ENVIRONMENT. THIS IS A BIG DISCUSSION RIGHTNOW ABOUT THE REGENERATIVE NATURE OF NATURE, I SHOULD SAY,AND THE IDEA WE HAVEN'T HARNESSED THAT FOR OUR BENEFIT.IS THIS THAT OPPORTUNITY? >> I BELIEVE SO. I BELIEVE IN IT, SO AS A TOOL,WE CAN USE IT AND REFINE IT AND.

EXPLOIT IT. I HOPE SO, YEAH. SONALI: THANKS TO FREDERICA. TUNE INTO AN OPTIMIST'S GUIDETO THE PLANET ON ALL BLOOMBERG PLATFORMS. IT'S TIME NOW FORTHE TOP THREE, EVERY DAY WE DO A DEEP DIVE INTO THE PEOPLE INOUR TOP THREE STORIES. JOSHUA PACK IS THE CO-CHIEFEXECUTIVE OFFICER FOR FORTRESS AND HE'S EXPECTING MORE U.S.BANK TO FAIL. HE IS ONE OF THE MANY PRIVATEASSET GIANTS STARTING TO SEE THE CRACK FORMING UNDER THESURFACE. ROMAINE:.

I'M FASCINATED BY THIS, WE'VEHEARD THIS FROM A LOT OF FOLKS, THE BANKING CRISIS LAST YEARWASN'T REALLY THE CRISIS, WHERE IT WILL TAKE SOME TIME TO PLAYOUT. I WONDER, DO WE NEED TO WORRYABOUT REAL CONTAGION OR WILL IT BE CONFINED TO THESE BANKS?SONALI: HE THINKS STRESS IS NOT SYSTEMIC AND YOU WILL SEE MORECONSOLIDATION. SOME OF THESE GUYS IT'S INTHEIR INTEREST TO START LOOK AT THIS. HE'S STARTING TO PAY $.69 ONTHE DOLLAR FOR LOANS. ROMAINE:.

I'M KEEPING AND I OWN JEFFBEZOS, WE LEARNED EARLIER HE'S JOINING THE LIKES OF NVIDIA ANDOPENAI TO INVEST IN A BUSINESS DEVELOPING HUMANLIKE ROBOTS.I GUESS FOR A MAN WHO BASICALLY BUILD ONE OF THE BIGGESTLOGISTICS COMPANIES, SOME ROBOTS TO LOADAND UNLOAD COULD BE A GAME CHANGER. SONALI:YOU HAVE TO WONDER WHAT THAT MEANS FOR JOBS, WHAT HAPPENSWHEN NVIDIA STARTS TAKING HUMAN FUNCTIONS AS WELL. ROMAINE:THEY WILL TAKE THE JOBS THAT ARE EASIER TO DO, YOU KNOW WHATTHEY CAN'T TAKE AWAY? SONALI:.

YOUR SOUL. [LAUGHTER] ROMAINE: YOU WENT DEEP, I WAS IN THECAN'T GO ON TOUR LIKE BEYONCÉ OR TAYLOR SWIFT. [LAUGHTER]SONALI: THIS IS MY REAL OPTIMISTICSTORY, BEYONCÉ BECOMING THE FIRST BLACK WOMAN TO TOP THEBOARD COUNTRY CHART WHEN “”TEXAS HOLD 'EM”BECAME NUMBER ONE. ROMAINE: THIS IS ONE OF THE SONGS THEYRELEASED AT THE SUPER BOWL. SONALI:IT'S NOT JUST THE COUNTRY ALBUM WE COULD SEE FROM HER, THECOWBOY HAT. ROMAINE:.

IN FAIRNESS, SHE IS A HOUSTONNATIVE AND HAS DONE COUNTRY SONGS BEFORE AND THERE'S BEEN A LOT OF DISCUSSION ABOUT THESPOTLIGHT . EVERYBODY TALKING ABOUT TRACYCHAPMAN. WONDERFUL. IT'S GONNA BE A BUSY WEEK NEXTWEEK AND WE WILL SET YOU UP FOR THE POTENTIAL MARKET MOVINGEVENTS NEXT ON “THE CLOSE” ON BLOOMBERG. ROMAINE:AS WE WRAP UP THIS WEEK, A LOOK AHEAD TO SOME OF THE BIG MARKETMOVING EVENTS, THE BIG ONE THE.

PC INFLATION DATA.– PCE INFLATION DATA. WE ALL HAD THE BIG SCARE A WEEKAGO WHEN WE SAW THE CPI AND PPI NUMBERS. WHAT ARE YOU EXPECTING?>> THE CPI AND PPI NUMBERS, THE CORE PCE IS GOING TO RUN HOT INJANUARY, WE ARE EXPECTING 0.4% READING. THE CORE SERVICES EXCLUDINGHOUSING INFLATION MEASURES IS GOING TO BE EVEN HOTTER AT 0.6%.I DON'T THINK THE MARKET WILL LIKE THIS NUMBER. SONALI:SPEAKING OF, HOW MUCH DOES THIS CREATE VOLATILITY FOR THEMARKET NEXT WEEK GIVEN THERE.

ARE A LOT OF CONCERNS ABOUTEVEN RE-ACCELERATION OF INFLATION GOING FORWARD? ANNA:IN THE SAME REPORT AS PCE INFLATION WE WILL BE LOOKING ATPERSONAL CONSUMPTION NUMBERS AND I THINK WHAT THE MARKETWOULD LIKE ABOUT THIS IS IT WILL SHOW A SLOWER PACE OFSPENDING BY HOUSEHOLDS. I DON'T THINK THE NUMBER WILLSUPPORT THE NO LENDING STORY. FURTHERMORE, IF YOU LOOK AT THEYIELD CURVE THIS WEEK, IT FURTHER INVERTED WITH THESHORTER END BEING HIGHER AND THE LONGER END ENDING THE WEEKLOWER.

USUALLY THAT'S A SIGNAL OF MOREWEAKNESS TO COME. ROMAINE: THIS GETS TO THE IDEA THAT ALLOF THOSE FOLKS THAT HAD BEEN PRICING IN MULTIPLE RATE CUTS,WE ARE HAVING A DISCUSSION NOT SO MUCH ABOUT RATE CUTS BUT THEPOTENTIAL WE COULD SEE A HIKE AT SOME POINT THIS YEAR.IS THAT RIDICULOUS? ANNA: OUR MODEL BASED ON MACHINELEARNING FROM FED SPEECHES HAS BEEN FLAGGING 13.3% RATE HIKEBUT OUR HUMAN JUDGMENTAL MEAT OF THE SITUATION THATINCORPORATES FORECASTS. WE THINK GIVEN HOUSEHOLD.

BALANCE SHEETS ARE WEAKENING,WE EXPECT MULTIPLE RATE CUTS THIS YEAR. STILL 125 BASIS POINTS, BUTTHAT SAID I WAS A GENERALLY THE MARKET IS PRICING THE MACHINELEARNING MODEL RIGHT NOW. ROMAINE: MAN VERSUS MACHINE.ALWAYS LOVE TALKING TO YOU, AND ALONG — ANNA WONG.WE HAVE TWO EVENTS ON SATURDAY AND ONE IN SOUTH CAROLINA.SONALI: THE SOUTH CAROLINA PRIMARIESARE A BIG DEAL AND WE KNOW GENERALLY HOW IT WILL SHAKE OUTBUT IS STILL SETS THE TONE FOR.

THE REST OF THE ELECTION CYCLE,PARTICULARLY HEADED INTO SUPER TUESDAY. ROMAINE:A REMINDER THAT WE HAVE THE TWO-YEAR ANNIVERSARY OF THESTART OF THE WAR IN UKRAINE. WE WILL ALSO GO BACK TOECONOMIC DATA IN THE U.S., THE PCE CORE INFLATION WILLPROBABLY BE THE BIG NUMBER OF THE WEEK. SONALI: WE WILL SEE HOW MUCH WE GETBEFORE-AND-AFTER THAT TO REACT TO THE NEW DATA. ROMAINE:AT THE END OF THE WEEK WE HAVE THE U.S.BUDGET FUNDING DEADLINE.

AGAIN, A BIG QUESTION ABOUTWHETHER WE END UP IN A GOVERNMENT SHUTDOWN OR KICK THECAN DOWN THE ROAD. ALSO SOME EARNINGS NEXT WEEK.SONALI: TONS OF RETAILERS AHEAD. I KNOW THAT'S SOMETHING YOU AREVERY GOOD AT COVERING. IT IS SOMETHING PEOPLE DON'TWATCH ENOUGH. ROMAINE: LOWS AND MACY'S TO HAVE THE BIGONES PURE — BIG ONES. REALLY APPRECIATE YOU JOININGUS THIS WEEK.

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