Deep Dive
Shownotes Transcript
Trading as Schwab is now powered by Ameritrade, bringing you an expanding library of education with even more ways to sharpen your trading skills. Access new online courses, insightful webcasts, articles, engaging videos, and more, all curated just for traders. Plus, guided learning paths with content designed to fit your unique interests. No sifting to find exactly what you need so you can spend your time learning to trade brilliantly.
Learn more at schwab.com slash trading.
When you're with Amex Business Platinum, you have the card that helps businesses dream bigger. Get a flexible spending limit that adapts with your business and earn 1.5 times membership rewards points on select business purchases so you can stock up on what you need to take your business further and get rewarded for growing bigger. That's the powerful backing of American Express. Not all purchases will be approved. Terms apply. Learn more at AmericanExpress.com slash AmexBusiness.
Bloomberg Audio Studios. Podcasts. Radio. News. ♪
This is the Bloomberg Surveillance Podcast. Catch us live weekdays at 7 a.m. Eastern on Apple CarPlay or Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube. Joining us now with our interview of the day without question is Lizanne Saunders, iconic at Charles Schwab. She's been there for at least, I think it's five years, seven years, something like that. Joining us in studio, Lizanne Saunders today. Okay, forget about...
I WANT TO KNOW THE ACT OF YOUR TWITTER FEED. YESTERDAY YOUR TWITTER FEED LOOKED LIKE THE FEDERAL RESERVE ANALYZING ECONOMIC DATA. IT WAS A ROCK STAR FEED OF LIKE 15 STUDIES OF GDP AND THE DYNAMICS INTO THE EQUITY MARKET. ARE YOU DOING THAT IN YOUR SPARE TIME? WELL, I'M NOT CREATING A
creating most of the charts you know that's kevin's domain if i had to create charts it would be you know with crayon so um thankfully i've got a great uh uh pair of folks with kevin and adrian who uh who do the charts but um you know there are there are days where weeks happen and
This week is one of those unbelievable weeks. You and I could have breakfast at Sarah Bass in Central Park South today and do like a four-hour conversation on this moment at hand. I got Brent Crude under $60 a barrel.
Global slowdown, U.S. slowdown, is that what you model in? Yeah, I think what we're seeing now is there was a lot of debate in the onset of the escalation of the trade war as to whether the growth hit would come first or the inflation pop would come first, and it looks like the growth hit may be coming first. So, Liz, we've got the S&P 500. I mean, the good news, bad news. Bad news is we're down 10% from the high earlier in the year, but the good news is we're 10% higher from the bottom. What do you make of this?
What do you think we should be doing here? I think what we're seeing in the month of April, particularly since the low, is a sign that the retail trader is still very active. They're still in the buy the dip mentality. You've got tech back in the leaderboard on a month-to-date basis, even though it's toward the bottom on a year-to-date basis.
VandaTrack tracks what retail traders are doing, and that's in stark contrast to hedge funds and other institutions and CTAs that have been going more risk-off. And then when you see something, Goldman Sachs has those great indexes and baskets, and their meme stock basket has been soaring in the last month, too. Another proxy for retail traders. What do you make here of earning?
Earnings, we're almost halfway through the earnings cycle. I see a lot of companies probably doing what I would do, which is like, I don't know what's going on out there. So I'm going to pull my guidance or give you some ranges or some scenarios. What are you taking away from earnings? I think companies have put themselves into timeout. You know, earnings so far for first quarter, a little bit better than expected. Not quite the beat rate that we've seen over the last year or so. But that's through March data.
So it's the guidance or lack thereof that I think is really important. And it is starting to feel a little bit like the early stages of the pandemic when at that time you had a record percentage of companies just pull guidance altogether. Is institutional under-owned in the MagS7 that retail owns up to their eyeballs?
In many cases, yes, because of certain funds' requirements that they have a max on the amount they can hold percentage-wise in any individual stock. Even some of the sector exchange-traded funds are limited. So they, by default, couldn't
Couldn't have developed the same concentration problem as what was embedded in cap weighted indexes. As a chariot at the University of Delaware a few years ago, Lizanne Saunders-
read Securities Analysis. This is a Seth Klarman version. I actually read the first edition, which starts with railroad stocks. And the reason I bring this forward by Warren Buffet, Graham Dodd and Cottle helped out too. A lot of this good work out of Columbia. Lizanne and I wrote this cover to cover a few years ago. And out there, Lizanne, is a terminal value.
I am appalled at the media's short-sightedness. What's Microsoft going to do next quarter? What's Apple going to do next quarter? How do we get back to actually looking at a five-year, a seven-year analysis of what some of these juggernaut stocks are doing? Can I plug our version of May Day today? Yes. So we are launching today, the inaugural will be an annual event called National Investing Day.
May 1st is purposeful because what it means in our world is that was the year 50 years ago, or the day 50 years ago on May 1st, where the SEC ended fixed commissions. And much of Wall Street decided to raise commissions. And Chuck Schwab himself said, man, let's lower them. That's exactly right. It was revolutionary at the time. But the day is about encouraging people
everyone to at least take one day a year and
educate themselves about investing and learn a bit more, become engaged, and we want to empower investors to do that. Why don't you tell us about this at the top of the interview? I'm running out of time here, and Mr. Schwab deserves some love here for really what he courageously did there. I mentioned Arthur Levitt as well. So today is your May Day. What's the number one mistake the media makes in short-termism right now?
asking people like me the question, should investors get in or get out?
100% agree. I mean, that's just shame on anybody. That's not investing. That's gambling, not just on a moment in time, but in two moments in time. And it's back to the humor, but the sadness, folks, of America missing out on the Lizanne Saunders great bull market, the joke of the triple leveraged all cash fund. The fact is, it's not funny. No, got to be in it. Can you come back like soon?
Yeah. I mean, I love being in here in person. Are you seeing Robert Plant this summer? Or, you know, we got any tour guide with Led Zeppelin? If he decides to pair back up with Paige and John Paul Jones. That would be so cool. Let Jason play drums. They're not on speaking terms, right? Well, they are. They're on speaking terms, but Plant doesn't want to do it.
The only reason they go out is when somebody gets divorced and they have to pay for it. I mean, that's, you know. You know, there was rumor that Sir Richard Branson offered them almost a billion dollars a number of years ago. Really? To just do two concerts, one at Wembley and one at MSG here. Wow. And it was apparently Robert Plant that said, wow.
I know. There you go, folks. Our surveillance Led Zeppelin. Inside track. I would look for her in Birmingham with Ira Jersey at the Aston Villa restaurant.
what is it, Pantera's playing? I know. That's a big show. Lisa Mateo, Lizanne Saunders, they love Pantera. This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at 7 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app.
You can also listen live on Amazon Alexa from our flagship New York station. Just say Alexa, play Bloomberg 1130. Right now, Daniel Ives joins us. And the greatest thing about Ives is when he's right, he doesn't do the I'm right, I'm right, I'm right thing. He just moves on to the next analysis. So I'm going to go CFA on you, Dan Ives, joining from Wedbush. The thing I don't get...
is the terminal value of revenue growth for these juggernauts. The media's out one quarter, if we're lucky, three quarters a year. The street's out two years. I was trained to go out five or even seven years. Do they have persistency of revenue growth out to 2032? Look, I think for really the first time maybe ever,
Big tech, because of this AI revolution, the visibility and the demand that they're seeing gives them what I believe is almost hyper growth into the next, call it, five, six, seven years. And I think that's essentially what we're seeing play out here, whether it's on digital media, whether it's on cloud, across the board, even in the tariff uncertainty, big tech, rock a Gibraltar. I mean, it's playing through as we see it.
hey dan i'm looking at microsoft i mean here's a three trillion dollar market cap company the stock's up 10 in pre-market i mean just amazing here talk to us about what's got the street
Enthused here about Microsoft this morning. Well first off I mean think about all the rumors abandoned data centers here and there that well How about them apples right you don't see I don't think those abandoned data centers I think that story is gonna disappear right because the reality is like Azure 200 bits above Street accelerating into next quarter - I mean to put some numbers and I basically think like I
You could be looking at, for a typical Microsoft customer, you could be looking at $30 to $40 of every $100 that they've already spent, $30 to $40 incremental just on AI spend. You put that together, I mean, you can essentially be looking at cloud numbers that essentially double every two years.
Dan, prior to the beginning of this year, all we talked about was AI for the past couple of years. And for the last four months, we've talked about nothing but tariffs. How is the AI story unfolding now? Can you give us an update? Yeah, look, I'd say, and we talked about it, you know, that Tom referenced in the last few weeks, like all of our checks, I mean, we've seen to some extent almost an acceleration in a lot of the AI spendings.
Because I think companies are basically saying, like, this is – you cannot touch this. Because this is really what's driving the strategic view of a lot of these companies over the coming years. And I think we're talking, what, $2, $2.5 trillion that's going to be spent with AI? With really a small amount of companies that are going to benefit.
And I think when it comes to tariffs, it's not impacted. I got a return on invested capital, folks. One of the best screens in the Bloomberg terminal is WACC, Weighted Average Cost of Capital Study. It's what's called a Stern-Stewart study from a million years ago. And I got a persistent 25% return on invested capital for Sachin Company. Dan Ives, I got revenue pre-pandemic of $126 gazillion.
They've done a double to where we are now. Do they get out to, I can't believe, I've never said this number. Are they going to get out to $500 billion in annual revenue, 2031, 2032? What's in the way of that?
I mean, I think 450 to 500, I mean, it's hittable because just given that I don't see what's going to stop it, just given where companies are going. And just to, I mean, you put it in perspective today, like you only have 2%.
of u.s enterprises that have gone down the true ai path it just shows that's just us none in europe none really i mean outside china it's minimal in terms of asia it just shows where this is going despite obviously tariff uncertainty hey dan we're going to get uh our good friends from uh cupertino apple it's going to report after the close here today what are you looking for
I mean, look, they're not going to give guidance, right? I mean, I'd be shocked. And I think the big question for them is, well, the quarter itself actually was pretty strong, and even some that could be pulled forward. The big question for them is, like, how do you navigate coming out with an iPhone 17,
in a typical cycle with these tariffs? What are you waiting for from the administration? And I think that's the question. Does the timing get delayed? We've talked about for Apple, obviously being bullish for Duckid, you don't look at it over the next three months. You got to look, as Tom always referenced, you got to look over the next 12, 18 months. I'll give free cash flow.
I'll get the install base. And even if things move around and I've been negotiations ultimately come through and I think they will be much more unscathed relative to where we see things today when it comes to tariffs. Tom, Apple's going to have over $100 billion of free cash flow. Yeah. I mean, Dan, what do they do here with this free cash flow here? I mean, look, M&A has obviously been minimal. The way that they view it in Cupertino,
it's it's basically from an roic it's about the buyback and it's about ultimately how they how they're going to continue to return that to cheryl right i mean dividends and that you notice you don't see this on bluebird radio but you see it on youtube what ives does is he's at some golf course is he in arizona i don't know where he is i'm in the area airport
He drops in the Wedbush backdrop of some class D hotel room. He's like in a Motel 5 or a Motel 4 somewhere instead of some $2,000 a night golf course in Scottsdale or one of the places Sweeney's been. Dan, I look at the belief here, and what I see more than anything is Mag 7 is under-owned golf.
by disbelieving institutions. Retail America loves Apple. Okay, that's a generalization on my part. But what happens when we wake up this morning with 33% Azure growth rate, what we get from Amazon tomorrow, whatever. I just count the boxes at the bottom of the skyscraper. Dan Ives, where is institutional Wall Street and their belief in these companies? I think Tom nailed it there.
I think I can now that retail stuck with it institutional. They've hit the exit and I think they got and you they've got scared out a lot of the mag seven a lot of tech and now guess what's going to happen over the coming weeks.
They're going to have to double down. And I think that's why I think the run here that we can see intact over the next three, four weeks, especially as we go through this, I think could be massive because it's under-owned institutionally. Because of all the fears. Paul talked about stock being up 9%, 10% in terms of Microsoft. There was a view that they were going to miss Azure. They absolutely, I mean, this is an Aaron Judge-like performance.
Who? Yes, it's Aaron Judge. Having even a better year this year than last year, if that's even possible. Exactly. Hey, Dan, talk to us about Tesla. And I think a lot of people are probably most interested in Elon Musk. We haven't heard from him much over the past month or two on the Doge front. Where do you, and I know you've been very, very public and very outspoken about Tesla.
suggesting that he really needs to get back to his day job at Tesla. What do we know about Elon Musk and Tesla these days? Yeah, and then obviously, you know, the journal article, which obviously, you know, board denied and that came out last night about, you know, looking for a CEO potentially. Look, the reality is that it must, that was a code red situation.
And it was the most important conference call he ever had to do. And he handled it, I think, the best I've ever seen him. Pick Tesla. He's going to lead them into this next chapter when it comes to autonomous robotics. And ultimately, I think that more and more a growth rebound that we see in China. And his days at the White House are done.
i however you want to call it one to two days a week i mean i think this is the beginning of the end the board was not going to take it cheryl's not going to tape it but but that's you're talking about one of the biggest disruptors technology companies the world must face tassel tesla's must on your community across the nation this morning and of course on youtube dan eyes with us with wed bush looking over here to see the secretary of treasury in conversation i believe with maria over at
Fox News will monitor those headlines from the secretary of treasury. It seems Paul, every time he speaks is that press conference the other day, he moves the markets. He does. Hey, Dan, just on the EV front here. I mean, there's a lot of, I guess, fundamental concerns here. If you're a Tesla investor, I guess that just from the car business, I know Elon's trying to have you focus on other areas, but boy, BYD and the Chinese operators are just really tough, aren't they?
yeah look b and we've seen it firsthand in china you know many times byd has done phenomenal and but i think it's not a mutually exclusive in other words like tesla is going to be also successful in china like they have been when it comes to the ev market i mean paul i think 90 of the future value of tesla is going to be autonomous and robotic i mean that's my
And Dan, just to be clear here, the board at Tesla thinking about a replacement, that's not even thought of, is it really? Again, Keene, he didn't want to do it. So after he took his hat out of the ring, there was no one left.
i look i think um but paul they had to do something whether it tested denies or whatever they had to do a warning shot it got to and we talked about with you guys a while on the show they it hit it hit that moment of truth dan i got a minute left on tesla here have you been in one of the chinese evs have you you know you're such a hitter have you been like in a byd
Yep. Are they nice? Are they like deluxe? Are they Yugo? What are they like? Michael Bart, Ives doesn't even know what a Yugo is. It's sort of like a Pinto. I wish I didn't know what a Yugo was. Dan Ives, what's the quality of a Chinese EV?
Look, I mean, BYD, high quality. I mean, I think even someone like Sweeney would take that to the golf course. Dan, thank you so much. You're a trooper. I can't say enough about the hours. Paul, you mentioned the hours he works.
Trading at Schwab is now powered by Ameritrade. Unlocking the power of Thinkorswim, the award-winning trading platforms loaded with features that let you dive deeper into the market. Visualize your trades in a new light on Thinkorswim desktop with robust charting and analysis tools, all while you uncover new opportunities with up-to-the-minute market news and insights. Thinkorswim is available on desktop, web, and mobile to meet you where you are. It's built by the trading obsessed to help you trade brilliantly.
Learn more at Schwab.com slash trading. When you're with Amex Business Platinum, going the extra mile for your business pays off.
With five times membership rewards points on flights and prepaid hotels booked through amxtravel.com, you can earn more points to help grow your business. And with access to more than 1,400 lounges globally through the American Express Global Lounge Collection, including the Centurion Lounge. Can I get you a refill? You can stay fresh wherever your business travel takes you. That's the powerful backing of American Express. Terms apply. Learn more at americanexpress.com slash amxbusiness.
You're listening to the Bloomberg Surveillance Podcast. Catch us live weekday afternoons from 7 to 10 a.m. Eastern. Listen on Apple CarPlay, CarPlay and Android Auto with the Bloomberg Business app or watch us live on YouTube. Leland Miller is a China basebook. We're thrilled that he could join us this morning. What's the thing in the zeitgeist on the China-U.S.-U.S.-China trade war that's not talked about enough?
Well, I think too much is being made of the idea that she can't come to the table and Trump can't come to the table because each of them has to have the other one go to the table first. It's in the interest of both these countries to eventually move towards some sort of negotiation. That doesn't mean that the negotiation is going to move to anything, but the tariffs are in a very, very high level of both directions. They don't even serve an economic purpose past a certain point. I mean, if you have tariffs at 145%,
even at half that, you're not making an economic difference because no Chinese goods are cost competitive at even half of 145%. So the tariffs are sort of arbitrary at a certain point. If the president wants to come to the table, say, "Look, we'll bring things down in return. You do some things for us,"
that certainly is a possibility if he's feeling economic pressure, if he's feeling pressure to sort of coalesce the Republican Party in one direction towards a tax bill as well. So there's a lot of pressures that are building up as we get towards summertime. They're going to sort of change the dynamics around the tariff discussion. Leland, can you give us a sense of where you think China is in terms of its relative strength in negotiating with the United States? Give us a sense of
how things are in China and how they might impact its ability to negotiate with the U.S.? Well, in a vacuum, the United States has much, much more leverage over China than China has over the United States because of the size of the trade surplus that China has in the United States. And I think that the idea here is if that were all we were talking about, there's a very good chance that the United States could just wait this out. The problem is there's a lot of other things going on in the world. You've got China
tariff battles with just about everybody right now. And so it's a question of who has a higher pain tolerance. And the Chinese have a higher pain tolerance in the US than the Americans do because of the fact that the American system doesn't quite allow for what the Chinese system does. So I think right now it's a question of who wants to take the most pain. The Chinese economy is under some duress right now.
But the United States economy is going to be under more duress as we get into mid-bay and retail shelves aren't restocked and freight starts breaking down. So there's a lot of pressure right now to come to some sort of short-term solution as we think through how this is going to end up.
So how do you expect this to play out, Leland? I mean, do you expect a meeting between President Trump and President Xi? Do you think maybe it'll just be trade representatives hammering out something, just the meat and potatoes kind of stuff that always happens? How do you think this might play out?
Well, Trump clearly wants to get in the room with she and she doesn't want to get in the room with Trump because he's worried that Trump will do something to embarrass him, that he'll say that something's happening or and then he'll go back after she agrees. So there's there's a cadence to this that has to happen. I think in order for anything enduring to to to move forward, it's something that will stay for longer than a few weeks or a few months. You have to get the two leaders in a room. You have to have them agree in front of a camera that this is the deal.
going forward but that's not necessarily any you know any it gonna happen in the near term because the chinese side is very worried that the the the americans are going to change the the nature of the game they get involved leland miller china beige look with us just thrilled that he's with us okay here's the reality folks and paul knows this when i say i went to china it's the airport a mercedes maybe you go two miles three miles shanghai a little longer some fancy hotel
a fancy office, then I get in the car, go back to the airport, and I've been deep into China. Leland Miller, I want to go deep into China right now, southwest of Beijing, I guess north, a little bit west, rather, of Shanghai. And I'm going to, I think I'm mispronouncing it. Shangxi, S-H-A-N-X-I, huge manufacturing appliance place. What do they do? I mean, when they're out of a job,
Are they like starving or is there a social net in this trade war for people deep into China in all those manufacturing jobs? - Well, there is a social safety net, but there's also a lot of pain. So we're seeing right now, manufacturing in China is actually under a lot of duress.
The economy outside of manufacturing is actually looking more resilient than it did earlier this year. If you look at the PMI, it just reported all these things happening in manufacturing. We had that data last month. And so we saw a huge fall off last month. We saw the end of most of the front loading happen at the end of last year. So what we're seeing right now is some resilience in the economy outside of manufacturing, but a lot of pain within manufacturing. So what do they do with manufacturing?
the cost of credits going down, they're boosting it any way they can. Fiscal support is going up, so they're going to have to continue to support manufacturing more and more and more because if this trade war does continue, then they're going to be under significant pain. Okay, so classic economy and a command and control economy, I get that. But classic economics here, they're going to give a surplus spur to the people of China
And the only outro there is a depreciation of the Chinese yuan. Is that a Leland Miller certain to happen?
No, I don't think it's certain at all. As a matter of fact, I don't think they want it to happen unless there's a break the glass emergency. So one of the problems with just appreciating your way out of this, yes, it would help manufacturing. It would badly hurt consumption. It would be a political disaster for China around the world because there'd be counter devaluations. There'd be enormous amount of political friction from that, especially for the United States, but also for everywhere else.
you know the yuan is is talked about as if it's a tool in in china's in you know economic weaponry it's really not it's it's at the end of the line to break the glass emergency if they do anything other than just sort of ease uh you know ease pressure off the currency and very gradual movements uh they're going to get a lot of political friction for the rest of the world particularly united states i don't think they want that and they don't want
the domestic repercussions either. Don't be a stranger. Leland Miller, thank you so much. China Beige Blanket. This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at 7 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. You can also listen live on Amazon Alexa from our flagship New York station. Just say, Alexa, play Bloomberg 1130. He's joined us before, and for all of you across the nation on your commute on YouTube,
across this nation, Canada and Mexico, around the world. The New York City mayoral primary, the Democratic Party primary, because there's like 12 Republicans within the tri-state area. I'm kidding. But the answer is it's a really interesting study on a budget standpoint of what to come. We've added in a number of the candidates. Joining us again, Brad Lander.
He's the 45th New York City Comptroller, understands budgets, he's to the left of left, but hey, you know what, it's a big city. We had a budget yesterday, and I get it, it's an election year, Mayor Adams put out a budget that is if I'm elected, free beer.
But how close are we to the headlines from another time and place? There's a movie out now on this. Ford to city, drop dead. Are we going to screw this up so bad, whoever is the new mayor, that we're going to see Trump to city drop?
Full colon, drop dead. The mayor that Eric Adams, the budget that Mayor Eric Adams put out yesterday is preposterous. It makes no allowances for the likelihood of an economic downturn. No allowances for the likelihood of federal budget cuts. He doesn't put one penny in reserves, and it's got a $1.4 billion deficit in the
current fiscal year. So yes, this is him trying to campaign, even though he long destroyed his chances of people voting for him again. But yes, he is going to hand the next mayor a real problem, which is why New Yorkers need someone who knows how the budget works. Give us just a sense of the state of the city right now from a financial perspective. Where are we?
Yeah, so before the tariff threats, we were actually in pretty good shape. Private sector jobs back up above the pandemic for the first time. Commercial vacancies starting to decline. Now, too much growth in low-wage sectors, health care and social services, but some promising signs.
If the tariffs tip us into an economic downturn or a recession, that'll blow a big hole in our budget. If there are big federal budget cuts to core services, that'll blow a big hole in our budget. Do you, at this point, anticipate the federal government cutting back
of New York City, for example? Yeah, in two different ways. Look, the budget that they've set the framework up for is going to cut money to all cities and states, leave politics aside. And that's money for school lunches and money for health care in our public hospitals. And then, yes, I mean, Trump is clearly aiming at cities like New York and...
that's a real risk. So I've recommended putting a billion dollars more in our rainy day fund, a billion dollars more in our general reserve, just so we could be prepared for what's coming. The Lander distinction, like a lot of, most people grew up in one zip code, you know, on this side or that side of Central Park or one of the
boroughs. You grew up in the shadow of KMOX out in St. Louis. You are different because you actually understand there's other cities out there just like New York. How bad is this going to be for St. Louis or for Dallas or for a very beleaguered crime-ridden Chicago?
Look, this is going to be a challenge for every city if you lose the federal funding that pays for your school lunches or the money in your public hospitals or your housing vouchers. New York stands to lose 8,000 housing vouchers. I don't know how many St. Louis will use. Does President Trump have the power to do that? Does he have the power in 2075 to say Trump to city drop debt?
Look, you know, these 8,000 housing vouchers, he's already said he's going to cut. He absolutely has that power. That'd be 8,000 more homeless families if we don't do something about it. Right outside our front doors here on Lexington Avenue, we've got these big cameras on Lexington Avenue for the congestion pricing.
What's your view on that? Where are we on that? It's a great step forward. I was one of the people I've been fighting for it alongside Mike Bloomberg since 2007 when the governor put it on pause. I convened the litigation coalition that got it off pause by bringing two lawsuits. And now we've got $160 million more headed toward $15 billion to invest in modern signals and subway elevators and platform barriers and station gates. Is it working? Better, faster subway service. Yeah.
Travel times across the bridges are up 10 to 30 percent. Traffic is down 12 percent. More people are on the subways. More people are on the buses. More people are taking city bike. It is working better than anybody predicted. North of 60th Street, Park Avenue looks like downtown in 1910.
It's like jammed up outside the congestion area. Am I right on that? There have not been big traffic backups even on the edges of the zone. Honestly, it is working better than anyone expected. Foot traffic is up. Business is going well. This is one that I thought would be good. It's even better.
Brad Lander with us, New York City Comptroller and mayoral candidate here. What do you do up to the June primary? I mean, what's the, do you, in this fractured cultural New York City, I mean, I don't think it's a city of Abe Beam or David Dinkins or others now. How do you campaign?
in this modern age? Well, first you go everywhere and it's an amazing city. Yesterday I was out in Brownsville. I'm up in the Bronx. I'm in all the, you know, as many neighborhoods as I can be personally. Of course, I'm up on the air with TV ads next week. You're doing radio, digital. You're getting out on every single place. I love being here. It's fun. New Yorkers are amazing. They're very diverse. They tell you how they feel. They're pissed off
about how much, how expensive it is and how expensive housing and childcare are. They want to feel safer on the subway. So they love hearing my plan to end street homelessness for folks with serious mental illness. They want a good vision. - What is the solution there? I mean, Tom and I, we've been in this city for a long, long time, Lisa as well.
What does a city like New York do? On that, look, it's only about 2,000 people who have serious mental illness and are sleeping on subways and streets. We can connect them to housing and services with a better continuum of care and a model called Housing First. I put out a plan to do it. One of the themes we're hearing from all the candidates, including you, Brad, is the basic idea we need more police officers. You're a liberal candidate.
How do you meet the Staten Island block that says we're 3,000 short NYPD? How do we affect that change? Yeah, I mean, I'm honest about it. I do think progressives, myself included, were slow to reckon with rising disorder coming out of the pandemic, mental health, crime.
Crime, mental health disorder. But look, we're now 1,500 officers down, and by January 1st, it'll probably be 2,000 or 3,000. So I have a plan to recruit and retain officers. Are they underpaid? Growing the NYPD cadet program. Well, my big idea is let's grow the NYPD cadet program, which brings people in and pays their college tuition. But you have to be halfway through college first. Let's open that up to kids out of high school. They could become cadets. They start getting paid. They get their
tuition covered, they become better officers, keep our city safe. Okay, but a 32-year-old NYPD officer can go out to the suburbs for more money, right? Are they, frankly, the nurses, the teachers, everybody else, is the pay grid of New York City underpaid?
is a general statement after X years of mismanagement? It's very expensive to live in New York City. That is a huge part of the challenge. That's why I'm focused on housing affordability. I've got a program called Homes for City Workers that'll invest pension funds alongside teachers and comps
and double the home they could afford. So if they could afford a $400,000 mortgage, pension fund invests alongside, they can buy an $800,000 home, split the proceeds when they sell it, the pension funds will keep doing well, and we could have the next generation of homeowners who are teachers, firefighters, cops, public hospital nurses. That's what we need in New York. Yankees or Mets?
St. Louis Cardinals. But this week, New York Knicks. I'm excited. They are doing great. Props to Jalen Brunson for that game. Does a comptroller sit in row one? Comptroller buys his own seats in the nosebleed section. Brad Lander, thank you so much. New York City comptroller.
Trading as Schwab is now powered by Ameritrade, bringing you an expanding library of education with even more ways to sharpen your trading skills. Access new online courses, insightful webcasts, articles, engaging videos, and more, all curated just for traders. Plus, guided learning paths with content designed to fit your unique interests.
No sifting to find exactly what you need so you can spend your time learning to trade brilliantly. Learn more at Schwab.com slash trading.
When you're with Amex Business Platinum, you have the card that helps businesses dream bigger. Get a flexible spending limit that adapts with your business and earn 1.5 times membership rewards points on select business purchases so you can stock up on what you need to take your business further and get rewarded for growing bigger. That's the powerful backing of American Express. Not all purchases will be approved. Terms apply. Learn more at americanexpress.com slash AmexBusiness.
This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at 7 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg Terminal. Now the newspapers. Here's Lisa Mateo.
Okay, so we all know how AI is being used for so many things, right? So here is another use for it. It's helping job seekers find new careers, not just a new job, but an entirely new career. So you have AI tools from companies like Salesforce, Google, LinkedIn, they're helping workers basically sell their skills, tailor their resumes to new areas, identify roles that are kind of under the radar that they wouldn't have thought about before.
It's already in positions and people in positions are already using it within the company. For example, Salesforce has this AI tool called Career Connect. So it analyzes their skills, right? It recommends roles internally that they might not have thought of. And then you have
LinkedIn has one too, Google has Career Dreamer. - Is Salesforce just to pick on that wonderful shop? Do they also use AI for career exit? Are they using it to get rid of people? - Oh, that's a good question. - That's the word out there. - Yeah, it's usually the word to get them in, but not to get them out.
It's interesting. I mean, it's amazing. AI couldn't do stock movers. Exactly. Well, I don't know. I may be out of a job. I do get those emails from LinkedIn and stuff. Hey, this job might be good for you. Suggestions, yes. But I'm like, I don't think so. But we'll see. But it kind of opens up their eyes. It does. You're like, wow, I never would have thought of that. I got a LinkedIn email. This job would be good for you. Uh-oh, what was it? It was a lifeguard in Philadelphia. Oh, you think that's funny? Next. Okay.
Okay, we'll stick with tech. We'll go to eyeball scanning technology. Okay, I don't know if either of you would be up for it, but it's from the company Tools for Humanity, startup co-founded by Sam Alton. Did you watch Andor last night? No, why was that part of it? No, this is like Star Wars. Straight out of Star Wars.
So it's starting this week. People in like six cities, San Francisco, LA, Atlanta are some of them. And you can scan your eyes using this spherical orb device at certain locations. So it's basically to verify your identity, prove someone is human because there's so many AI deep fakes out there. Okay.
So that's why they're doing this. And what's really interesting is that they're using it also for dating apps because there's so many people putting out fake profiles. So this is going to kind of make sure that people are not lying and setting up these profiles that, you know, people want to date and they want to make sure they're getting a real person. So like Match Group is piloting with this company, Tools for Humanity, and starting to use it for that too. Age verification on Tinder in Japan. They're using it for, oh my God.
People are not so honest. I don't know. I guess on this, apps, I mean, you know, I'm 26. No, you're not. You're 60. Remember college? What's your major? Yeah. That's exactly. That's all it was. Next. Okay. So we've heard a lot of stories about, you know, the big money that CEOs make, right? Median CEO paying the S&P 500 hit a high of 16.4 million last year. But the Wall Street Journal is saying a lot of these heads of the companies, they'd rather just pass on the position than deal with what's going on internally.
in the climate today so a new study said that last year 373 public company chiefs left and that was 24 more than 2023 so you see the number but you know they thought they're saying they thought that you know the worst was over when the pandemic was gone and okay we're back to normal but then came ai then came tariffs then came the possibility of recession then came scrutiny of dei efforts and they're all thrown into this tizzy so the problem is that they're saying is that it
the turnover affects not only them, but everybody around them because new bosses come in and they, bosses, sorry, Brooklyn accent, bosses come in, reorganize them. Even if a business is healthy, people get laid off. So they're starting to see that trickle down effect and that's, that's
Basically, I think a lot of these CEOs have made so much money on their stock over the past five, 10 years that they're like, I'm done. You know, particularly in a time like the economic times, we have the uncertainty here. What's the manage through? They don't want to deal with it. They don't want to deal with it. A lot of them are saying they're empty nesters. Some are saying, you know what? I'd rather be a consultant and just be done with this.
So it's starting to change. The landscape is changing. Lisa Mateo with our tech newspapers this morning. Thank you so much. Greatly appreciate it. This is the Bloomberg Surveillance Podcast. Available on Apple, Spotify, and anywhere else you get your podcasts.
Listen live each weekday, 7 to 10 a.m. Eastern, on Bloomberg.com, the iHeartRadio app, TuneIn, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg Terminal. There are presentations.
And then there are Canva presentations. With Canva, you can use AI to take your presentation to the next level. You can generate dynamic slides and text with a simple prompt. You can drag and drop graphics and charts from Canva's media library and add interactive elements to plus up your deck. And with collaboration tools built in, the whole team can work together better.
You'll love the presentations you can easily design with Canva. Your clients and coworkers will too. Love your work with Canva presentations at Canva.com. Hiscox Small Business Insurance knows there is no business like your business. Across America, over 600,000 small businesses, from accountants and architects to photographers and yoga instructors, look to Hiscox Insurance constantly.
Find flexible coverage that adapts to the needs of your small business with a fast, easy online quote at Hiscox.com. That's H-I-S-C-O-X dot com. There's no business like small business. Hiscox Small Business Insurance.