The Fed Decision and Middle East Conflict
33:39 Share

This is an iHeart Podcast.

As a global leader in alternatives today, PGM is capturing the potential of tomorrow. So as you look to diversify your portfolio, PGM offers expertise in seeding, developing and managing a broad range of liquid and illiquid strategies. With over $320 billion in alts across public and private markets, we are helping clients achieve their long-term goals. PGM. Our investments shape tomorrow, today.

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.

Switch to Verizon Business and get more from your internet without paying more for your internet. Get LTE Business Internet starting at $39 a month when paired with select business mobile plans. That's unlimited data and with it, unlimited possibilities. Start saving today with Verizon Business. Ranked number one in small business internet customer satisfaction by J.D. Power.

Starting price for 25 megabits per second LTE internet plan with smartphone plan savings, plus taxes, fees, and economic adjustment charge. Terms apply. For J.D. Power 2024 award information, visit jdpower.com slash awards. 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. Jack Devine is founder of the Arkin Group and is just definitive on the arc of our CIA awareness.

Away from the movies, away from all the different silliness as well. And in fact, some would say he was actually a character taken by Philip Seymour Hoffman long ago. Jack Devine, because of limited time, questions are so important here.

My memory is our colossal misguess on the intelligence of the Soviet Union. Do we have quality intelligence on Iran?

Well, I hope so. Let me put it that way. We're at that point where push comes to shove. There's no doubt in my mind that we have great technical coverage. I also believe we have a force multiplier in Israel. Israel has fantastic intelligence collection on Iran. There's no doubt about it. And I therefore think that we're well positioned

to deal with the situation because of that intelligence. And they've shared it amply because it's in their interest and our interest. So I think we're square on this one. This is not a, I don't see it. There are opportunities for mistakes on this, for sure.

But it won't be because they don't have good intelligence. There's great discussion of the linkage of the Pentagon to the White House and the White House to the Pentagon. Do you perceive a good use of our CIA intelligence by President Trump? This is a controversial issue today because Tulsi Gabbard, in March, went down the hill and said that the

The Iranians did not have a nuclear weapon and it was three years before they could deliver it. And that was raised with President Trump yesterday. He said he's really not counting on that information. And so therefore, I think there is a disconnect. And I guess I would have a cautionary note for political leaders.

and that is if you have a choice between the intelligence community that says we're going to give you nothing but the truth and you have political leaders in other countries who have a vested interest in

in presenting facts in a particular way, I would recommend you stick close to those intelligence estimates. So having said that, there are subset issues in this that I could touch on, which is, for example, we have to be careful in defense of Netanyahu's presentation of the situation. This is not underestimated. You cannot get this wrong and say that it's not

it's not a dangerous situation and i would add to that that i think we spend a lot of time thinking about oh they won't be able to deliver by a missile and that's what pushes it out a few years and i think we need to step back and realize that's not the only way that nuclear weapons

can be detonated and can be dangerous so there's an enrichment point and once it gets that enrichment point then then the starting gates open you have to take care of it jack if the us does get involved here militarily how do you think the iranians will respond i would not want to be in the iranian leadership's position it's like the featherweight fighter getting in with the heavyweight champion of the world and have never had a fight

And I think that's what you're looking at. And you can dance around the ring and jump up in the ropes, and you're going to get knocked out and carried out of the ring in the first round. How do you defend yourself if you have no air defense? I mean, if there is no way to prevent your adversary, and that would be in this case Israel and ourselves,

THIS THING CAN ONLY END ONE WAY. I THINK THE AYATOLLAHS HAVE A GREAT STRUGGLE WITH IT, AND THAT IS THE PRESIDENT OF THE UNITED STATES IS SAYING UNCONDITIONAL SURRENDER. THAT HAS VERY SPECIFIC MEANINGS. I THINK THAT'S WHERE WE ARE. I THINK FOR THE IRANIANS, THE COUNTERPUNCH, THEY MIGHT GET ONE IN,

But all hell will break loose after that. They have nothing to stop the U.S. from flattening Israel without using nuclear weapons, just flattening it, have no defense. So I think they may turn out to be a little more prudent than they're hopeful, more prudent than their verbiage. Jack, I guess one of the initial talking points is, I guess, the Fordow nuclear site deeply buried under the ground. Does the U.S. have the ordinance to take that out?

I think all the experts have been practicing this for years. I shouldn't say tens of years, but I mean, you sort of over the last decade, they've been developing the technology

GBU 57 and that that has the capacity of but not a single shot. This is going to take multiple shots at Fordow to destroy it. But I think we have the capability. Unfortunately, we are the only ones that have it and we only have we have the one platform to be the B2 that can deliver it. So I think if I were sitting in Tehran, I would say goodbye Fordow. Okay. I think that's where we are. It's going.

And, you know, it's not going to be pretty. I think it's the only alternative. I think I've read, and I know I've read, but that the Israelis believe that there's other alternatives. And if there were, I think we would have said, why don't you use them? I think it's either this or you let them go.

keep developing nuclear weapons. So I think it's we're looking at the end game here. Jack, very importantly, one time for one more question. We'd love to get you on in the coming days and really appreciate your public service for over 50 years to the CIA. We had on the crown prince in exile, the son of the Shah yesterday. This made global headlines. Thank you, Danny Berger and Lisa Abramowitz for that.

What does, I mean, you have talked about a partition of Iran, a partition of Iraq. What happens to the greater Persia if this all falls apart? Is it every big nation for themselves? To some degree, we're in a world where it's every nation for itself, and then you try and find something to build allies. But let me hit what I think is at the core of

the Shah's son's approach, not approach, the fact that he's on the scene, and that is the regime change. The question is, is Israel going to stop at Firdo or are they going to push for a regime change? This is an issue that our policymakers are struggling with today as well. I want to be cautionary. I mean, I see the wisdom of taking out Firdo one way or the other in the end. I wish it hadn't been with America, but I've made peace with that.

Regime change, in my experience over all those years that you referred to, is analysts, political leaders underestimate how people put up with downtrodden conditions to such an extent.

And they can't believe that, oh, if you're an American, you'd rise up in arms. So they overestimate the prospects for regime change. And I'm afraid that's where we may be here today. I don't see it. There's a lot of angry people with the Shah, not with the Shah, with the Ayatollah. But there's no armed group inside the country. There's no indication of force. There's no split at the very top where you can have a palace coup.

So I think that's the dangerous waters here that we have to avoid. Check to find. Thank you so much. It's public service for the CIA, the Arkin Group for decades. If this government spending in defense goes towards things like R&D that have dual use civilian purposes, who could get spillovers that actually end up enhancing productivity,

in Europe and so have a more long-lasting impact on growth.

For enterprise organizations, managing all your food needs is a tall order. But with EasyCater, you get a single workplace food vendor with the tools and resources to make it easy, giving teams across your organization an easy way to order from a huge variety of restaurants, all on one platform. All while consolidating your corporate food spend so you can control costs, streamlining billing and payment and simplifying reporting.

Easy Cater, your business tool for food. To learn more, visit easycater.com slash podcast.

In business, they say you can have better, cheaper, or faster, but you only get to pick two. What if you could have all three at the same time? That's exactly what Cohere, Thomson Reuters, and Specialized Bikes have since they upgraded to the next generation of the cloud, Oracle Cloud Infrastructure. OCI is the blazing fast platform for your infrastructure, database, application development, and AI needs.

where you can run any workload in a high availability, consistently high performance environment and spend less than you would with other clouds. How is it faster? OCI's block storage gives you more operations per second. Cheaper? OCI costs up to 50% less for computing, 70% less for storage, and 80% less for networking.

Better? In test after test, OCI customers report lower latency and higher bandwidth versus other clouds. This is the cloud built for AI and all your biggest workloads. Right now with zero commitment, try OCI for free. Head to oracle.com slash strategic. That's oracle.com slash strategic. You're listening to the Bloomberg Surveillance Podcast. Catch us live weekday afternoons from 7 to 10 a.m. Eastern. Listen on

carplay and android auto with the bloomberg business app or watch us live on youtube hugely anticipated this fed day michael darted joins us now from earth capital michael let me start at the nominal level it probably won't come up in the press conference but is the animal spirit there or in risk of lessening can we generate with inflation four or even five percent growth well

Well, Tom, I think we're seeing a little bit of slowing around the edges in terms of the nominal economy. So if we look at some of the tracking estimates for Q2, real final sales to the private sector look like they're sub 2% now. And we've had just over two years of 3% average growth.

And so nominal has been up there, you know, 5% plus, which is, you know, quite strong relative to the average of the last business cycle that was closer to four. And then obviously during the high inflation period, 2021, 2022, we had double digit nominal growth. So the Fed has slowed the nominal economy. It's brought inflation pretty close to target.

But we don't want to go too far and then worry about recessionary risks, which have been out there. And obviously, the economy has defied those concerns over the course of the last two years. But there is some slowing here. And if nominal is about to run sub 4%, Fed policy rate probably shouldn't be above 4%.

So what we're not seeing, Michael, at least not yet, is inflation. Is there a scenario where maybe some of these tariffs are maybe taking in the margin of corporate America versus maybe the pocketbooks of consumers?

Yeah, it's really been quite a surprise with these benign inflation figures over the last few months. So part of it could be a little bit of a delay. Part of it is that there's a lot of moving parts here, even with the recent geopolitically driven crisis.

upward pressure in energy prices. We're still flattish year over year on crude. Industrial metals are down year over year. Inflation expectations in the TIPS indexed bond market really haven't moved at all. They're at quite low

consistent with price stability. So we're not seeing a big tariff fallout so far. And that's actually quite good news for the Fed because I think that gives the FOMC more flexibility to ease policy

in the event that we do see more slowing ahead. But you're right, the question is profit margins, right? I mean, equity multiples are not low. So we're probably not looking at really strong earnings growth this year, but markets are really optimistic over a multi-year horizon that will have pretty good earnings growth. - And you're suggesting that'll be a disappointing event, right?

Well, you know, Tom, I'll have to say, I mean, I was quite skeptical of this whole AI revolution. I thought it was a bit overhyped and overbaked.

But I've kind of changed my view on that. And this is just anecdotal, but just through personal use of these AI interfaces, I mean, there has been a vast and breathtaking improvement in what this technology can do. You know, whether we're dealing with health and wellness from a personal perspective or your favorite macroeconomic modeling. I mean, it's like having 50 research assistants at your disposal today.

and you don't even have to be nice to them. So what's exactly that just for me? Exactly. Save us, Paul. Michael, what do you think the Fed should say today? What should Fed Chairman Jay Powell's message be today, do you think?

Well, you know, I would love if the chairman would focus on bond market inflation expectations. I think those are more important than some of the survey data is a bit divergent. You know, we've seen a lot of upward pressure from the U of Mish data.

but not so much out of the New York Fed. But I really believe these indexed bond spreads are the key. And if we remember back to last summer when it looked like the labor market was really losing steam in a dramatic fashion, those expectations started to tank, but they recovered when the Fed started to lower policy rates.

So the Fed has just nailed it here. I mean, they've really pulled a rabbit out of a hat in terms of raising rates sufficiently, holding them there, and then seemingly cutting them just at the right time. Even the pause, which some think was political based on the timing of the election, I think is perfectly justified based on the macro data and the behavior of bond market inflation expectations.

So I would love if Fed Chair Powell would give some additional credence there, but I won't be holding my breath for that. I think he's going to hold it close to the vest. We'll see what these updated projections say, but I'd be kind of surprised if the Fed and the market expectations were

seriously far apart at this point. I think they're fairly close. Paul, get one more in here with Michael Darda, but I just went to Google Gemini and I typed in linear rational expectations model, which Darda was expert at, the difference equations of when he was at Wisconsin as well. And just like he says, it lays out an incredible

six paragraph summary including DSGE models and we have Clare today all right on the Fed meeting I mean it's you're right Michael it's just it's jaw-dropping what they're doing Michael do you think this U.S economy can have I mean it appears that we've a we've had that soft landing um the question I think for a lot of people is in a world of higher trade tariffs does that threaten that soft landing at all what's what's your GDP view here

Yeah, I think we're in a trend growth economy, and that is by definition of soft landing. But at the margin, the risks are probably to the downside here. You know, you guys were just talking about the messy real estate market, and it's been messy for a while.

But the risk with these tariffs is that we're self-imposing adverse supply shocks in an economy that has really benefited from an awakening of the supply side, right? I mean, early in the pandemic recovery, we were getting negative productivity growth for about two years. Over the last two years, we've seen much better numbers, close to or above 2%.

And that doesn't really even tell the AI story yet. That was really just a rebound from the pandemic-oriented distortion. You don't want to do anything that interferes with the supply side, and the tariffs are going to be a headwind there. I think the AI story is going to be much more powerful over the longer term. So as long as the Fed doesn't fall drastically behind the curve here, Paul,

Paul, I think that we can have good economic outcomes. Michael Dardy got a run of the war. Thank you so much on this Fed Day for joining us. Mr. Dardy is with Roth Capital. This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at 7 a.m. Eastern on Apple Podcasts.

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. This is a joy and hugely anticipated. Wintham is out of the Columbia-Georgetown Brandeis axis, and particularly Columbia University. He's

He's global head of market strategy for Brown Brothers Harriman, but he is definitive on the Pacific Rim. Wait, let's just start, Dr. Thin, with the basics of the Pacific Rim, not your Burma, but, you know, North Singaporean on up north.

The currencies are screaming. Taiwan dollar, stronger. Sing dollar, almost down. New recent strength as well. It's asymmetric. Is this about dollar weakness or is this about Pacific Rim success? First of all, Tom, Paul, Lisa, thanks for having me. It's always a pleasure. I would say there's a lot of moving parts.

Much of it, I think, is dollar weakness, but there's also, as you know, there's rumblings out of these trade talks that the U.S. would like these currencies to be allowed to strengthen. We've heard that out of Taiwan. We've heard that out of Korea. It's been reported and denied, but where there's smoke, there's fire. So it fits into the underlying sort of market view that this administration wants a weaker dollar, pretty much across the board, and it's part and parcel of the whole trade talks.

That's not to say these countries aren't doing well. Of course they are. There's some issues, obviously, with China and supply chains and things like that. But overall, the fundamental story remains quite solid. So these currencies could strengthen, especially if this dollar weakness picks up after today's, what I think would be the expected dovish hold.

So, Wynn, what do you make of this U.S. dollar? We've seen after the initial sell-off in risk assets earlier this year on Liberation Day, we saw that, I don't know, the U.S. equity markets kind of retraced all the sell-offs, but we've not seen a rebound in the U.S. dollar. Is this just a normal 10% pullback on a rich currency, or is there something else going on? Well, Paul, you know, if you asked me at the beginning of this year, you know I was a dollar bullet coming this year.

We had the economy firing on all cylinders, the Fed hawkish, et cetera, et cetera, deregulation. But really, to your point, Liberation Day was really a game changer. It was, I think, a realization by the markets that the policymaking out of this administration was unpredictable and really, to me, unexplainable, inexplicable. And I think it's been a loss of confidence in the dollar.

since then. We've had so much back and forth on tariffs, on fiscal policy. It's really been a sort of game changer since April 2nd and then April 9th, the tariff announcements. So yeah, I've changed. I think the dollar is in for a weaker spell, especially again with the U.S. economy starting to show some cracks. That's why I think the Fed is going to deliver a dovish fall today.

Tariff uncertainty continues, fiscal uncertainty continues. So all the elements are there for a weaker dollar. As the Fed speaks today in the press conference on all Dr. Thin, one of the things here is everything's unilateral discussion. The president, let's make a deal. Tim O'Brien coming up in a bit, folks. Or maybe bilateral. And all of your academics is it's a multilateral world. Are we just going to see them shift their U.S. exports?

through Singapore, dare I say through your Burma? I mean, are they just going to conduit their exports through other geographies?

Well, I do know, that's a good question, Tom. I do know that the U.S. is on alert for China to sort of re-export through Vietnam and sort of other proxies. It can be done, but it'll be difficult. What I think to me is, I get back to this bigger story about the dollars, that the U.S. really is pulling inwards. It's becoming, they call it America first. It's whatever you want to call it. It's isolationist. It's leaving a vacuum for other countries. I think China will...

So it exerts a greater influence, especially in the Pacific Rim and Southeast Asia. We have Eurozone becoming a bit more cohesive and perhaps picking up the ball over in the European sphere.

You know, it's a long, you know, we could talk about this for hours, but in sort of geopolitics, we could be coming into this sort of multipolar world, in which the dollar, the U.S. really has pulled back and allowing others to come into this vacuum. Again, that's part and parcel of the weaker dollar, I think, as well. Markets move. The yield comes in in two basis points, 4.36%. We have economic data, and the housing starts. There was a bit of a positive revision, but there's a grim statistic.

on housing starts and building permits here. The survey, negative 0.8%, round it, 1%, negative 1%. It came in at negative 9.8%, round it, negative 10%. Huge miss. It confirmed.

with building permits as well which were to be flat the survey was 0.0 and they came in negative two percent as well claims uh pretty much on track uh is well four week moving average lifts up from 240 000 up to 245 000. so there's the economic data maybe it doesn't matter on a fed day but

It's there, and again, that will be there at 1.30, giving you the Fed press conference and such. Paul? When we saw earlier in the year when there was this volatility in the U.S. markets, a movement of capital over to Europe, particularly equities, people kind of buying into these European equities, and now we've got European indices doing better than the U.S. Is that simply a short-term trade, or is that something more fundamental, do you think?

Yeah, Paul, I think that's sort of a million-dollar question. My gut feeling is it's a pretty serious rotation out of the U.S. Again, everyone was long U.S. equities dollar at the beginning of this year. But since the year began, we've had some good news out of Europe, the fiscal sort of developments in Germany, some improving sentiments in the case out of most of Europe.

at the same time that the US is starting to soften up. So I think it's a cyclical shift. I wouldn't say it's a structural, I think that's too early to say, but certainly a cyclical shift rotation from out of the US into Europe and other areas. And that's reflected in the equity market outperformance as well as the currency outperformance.

It's the weaker dollar. Right now, it's sort of sell the dollar, buy everything else. And again, I don't see anything on the horizon to change that very much. - Dr. Thin, thank you so much. Win Thin is with Brown Brothers Harriman. - For enterprise organizations, managing all your food needs is a tall order.

But with Easy Cater, you get a single workplace food vendor with the tools and resources to make it easy. Giving teams across your organization an easy way to order from a huge variety of restaurants, all on one platform. All while consolidating your corporate food spend so you can control costs. Streamlining billing and payment and simplifying reporting. Easy Cater, your business tool for food. To learn more, visit easycater.com slash podcast.

Hey, good drivers. Yeah, we're talking to you. The ones who don't speed, the ones who avoid those fender benders, and who always use their turn signal. Congratulations, you're a better driver, and that means you could get better rates with Route Insurance. It's time to stop paying for other people's bad driving habits. You know, like the ones who cut you off just to slam on their brakes. Woo!

or the lead foot speeding to work every day. With Root Insurance, you'll get a quote based primarily on your driving. Just download the Root app, drive around like you normally would for a couple of weeks, and boom, you'll get a quote that actually makes sense. It's that easy. Root. Because better drivers deserve better rates. Download the Root app today and see how much you could save. That's Root Insurance. Terms and conditions apply. Subject to underwriting review. See Root.com for details.

The data that matters for your investments. The entire auto sector is higher today. And analysis on the companies making news on Wall Street. Tesla's been a stock that's been in focus. Shares have really been all over the map this morning. Listen to the Stock Movers Report from Bloomberg. Let's talk about.

on Apple Podcasts, Spotify, or wherever you listen.

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. Tosia Paltin-Guzman joins right now. Decisions with Energy Vista barely describes her expertise in something we don't talk enough about,

because Paul and I flunked the physics of LNG, liquefied natural gas. Her research note is so valuable, we protect the copyright of our guests. Get her note from Energy Vista. Leslie, thrilled to have you in here for a brief today. What are they thinking about in Qatar? They're not worried about the World Cup right now.

Am I right? They own Arab LNG? Yes. And are they at risk because of this war? So I think Qatar is one of the most vulnerable players right now in the region because it depends on the Strait of Hormuz to evacuate all its LNG shipments.

That's one. Second, we had a strike from Israel on South Pars, number 14, a few days ago, which is the share field between Qatar and Iran. Although it's further away from Qatar, and it's a domestic, it's a field for domestic consumption within Iran, it shows the capabilities

um and and the highest you know we are the highest place in terms of tension for potential infrastructure hits in the region ed moore sat in your chair there yeah two days ago i believe it was the giant of geopolitics and analysis of this and he said the media is missing the lng study the natural gas study brief us now

on the fragility and the outcome of a busted LNG market if this war expands? So Qatar is one of the world's largest LNG exporters around the world. The U.S. is the first one, Qatar is the second one.

Qatar is sending most of its gas right now to Asia. 80% of its LNG goes to Asia, 25% to China. So any major disruption of Qatar is a major hit for the market. Less so right now for Europe, because since the Houthis have been relentlessly attacking shipments in the Red Sea,

Qatar is only maybe exporting one BCM a month to Europe. But basically the disruptions would be mostly for Asia, and this would be a major hit. I would say that

We're in a very soft place right now in terms of demand in the global gas market. There is ample supply coming online, but still, you will notice it with pricing. You know, what I would say is that there are still many unknown in the coming days. The oil and gas market will brace for further impact in terms of shipping disruptions and potential further disruptions

attacks on energy infrastructure if things escalate. What are the shipping companies telling you about how they're preparing for, I mean, God forbid, the Strait of Hormuz, there'd be some tension there, but even other shipping lanes that are critical to the movement of liquefied natural gas and crude oil, what are they telling you? So most of the shipping companies right now are avoiding as much as possible the East Mediterranean,

the Suez Gulf, the Red Sea, they were already avoiding it, and the Persian Gulf. Because we've seen some infrastructure hits in the East Mediterranean. The Haifa refinery was hit. Now the Leviathan field in Israel is shut down as precaution.

We've seen also, as I was mentioning earlier, some hits on other infrastructure. But I would say that so far we've seen a restraint regarding energy infrastructure. That could change if things go south. We're running out of time. This is too important a question. I believe the president was in Qatar. I believe he was shopping a new Air Force One. I guess we're making nice, we're doing the World Cup, whatever the moment is.

And Qatar is, I guess, the path of conversation from Tehran to the Western world. What will you listen for from Qatar and from Tehran in that communication to the Western world? So it's three scenarios right now. One is...

the U.S. joined the fight and want to finish the job because both I think the U.S. and Israel understand that since October 7, the head of the octopus is Iran, and a nuclear power in Iran would be too dangerous for the world. Second is the nuclear talks, potentially what Qatar would prefer, meaning we go back to the table, we negotiate, and it would be a save-the-face strategy for Iran and basically...

the only option to save the region maybe now. And third would be total rogue, going rogue and maybe going with nuclear breakout with whatever is left of nuclear or going after many assets from the US and energy infrastructure and neighbors.

Thank you so much. Really appreciate this. The Senior Non-Resident Fellow of the Center for Strategic and International Studies, Leslie Palti-Guzman, joins us from Energy Vista. This is the Bloomberg Surveillance Podcast. Listen live each weekday starting at 7 a.m. Eastern on Apple CarPlay and Android.

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. Paul, can Lisa top what she did yesterday on newspapers? I don't know. It was pretty solid. She's got a good lineup here today. I like the lead story. You get a free email? I don't get a free email. Lisa. I get approval. Please, you and Paul brief me on the newspapers. Okay.

Okay, we're starting with the Dallas Cowboys cheerleaders. That's why Paul likes it. Oh, really? Yes. They got a big pay raise. I like this story. A roughly 400% increase for the 2025 season. It was revealed, episode seven, they have the second season of the Netflix docuseries. They have one about the show. It's called America's Sweethearts. Big hit. I actually watched a few episodes. I have to full disclosure. There wasn't any information about what they were making before.

how much they're going to be paid under the new deal. But the New York Times did speak to a former cheerleader who said in 2024, it was her fifth year in the squad, she made about $15 an hour, $500 for each game appearance. So sometimes they're saying the mascots make more than the cheerleaders.

But what's still missing is health insurance. But what they're saying is that it's really putting it out there. So now because of this increase, cheerleaders from other teams could be set for an increase. Is it a part-time job? I mean, there's what, 16 games, 18 games? Yeah, I don't know. They get paid by the game, right? They get paid by the game and per hour. And per hour. They almost have other jobs, right? They all have full-time jobs. And that's what you see in the series is how they're all struggling. Like they're working this job, working that job, and doing all this stuff just to be a part.

of the organization. Were you a cheerleader for the Jets or the Giants? I was not a cheerleader ever. Next. Here we go. All right, since we mentioned that Netflix series, I want to stick with Netflix. And this is interesting. Is it kind of a sign of what's to come? Because Netflix struck a deal

with to show linear TV for the first time. It's going to add live television channels shows from French broadcaster TF1. So what French customers will be able to see is live feeds, including sports from TF1 channels. They'll be able to stream their shows on demand dramas, reality shows like The Voice that they show. The actual like French signal will be free on Netflix. Correct. There's no word, though, on how subscription

advertising revenues are going to be shared between the two companies or how much Netflix if they paid for like an upfront fee for the content. But it's kind of a start to something interesting. It goes to the news you had earlier a week or so ago that in the month of May,

streaming viewership exceeded that of broadcast and cable television in the US. So that's the trend. It's right before us. So would we see that here? Yes, you will. Interesting. Interesting. And the last one is about private space stations. They could become the next travel destination. So instead of going globally to France or wherever you want to go, you can go to space. Maybe pretty soon. There are a lot of companies looking to build these facilities.

Making them is pretty expensive. So the Wall Street Journal kind of listed some of them, like Axiom Spaces Station could someday host as many as eight people, five different modules. You can orbit above the Earth. It's going to cost about $3 billion, though, to make. And then you have Jess Bezos' Blue Origin there behind a station called Orbital Reef.

that could be coming. Orbital Reef. Orbital Reef, yes, if you would like to stay. NASA says SpaceX is also investigating using its Starship as a possible low-Earth orbit destination, too. And then there's Starlab. They're backed by Voyager Technologies. So it's all these companies that are putting the money in. Is Elon and Bezos involved? I mean, they don't go up to orbit. I mean, excuse me. Kind of. Bezos, but kind of. It's exactly right. Yeah.

But now they're going to go into orbit and on a space station. And stay for a vacation. For a vacation. It's a staycation. But it's not just tours. Of course, it's also, you know, different astronauts and scientists and research and things like that. But it could be open to tourists as well. Okay. Thank you. I'm just trying to at least audition for the Giants, you know, cheerleading this fall. Yep. Or the Jets. Or the Jets. The Jets do have a good flight squad there. Let me see.

Lisa Mateo, thank you so much. That is the newspapers. 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. ♪

For enterprise organizations, managing all your food needs is a tall order. But with EasyCater, you get a single workplace food vendor with the tools and resources to make it easy, giving teams across your organization an easy way to order from a huge variety of restaurants, all on one platform. All while consolidating your corporate food spend so you can control costs, streamlining billing and payment, and simplifying reporting.

Let's talk about.

This is an iHeart Podcast.