NetFlix Streams to Record; Trump Widens Tariff Threats to China and Europe

Bloomberg Audio Studios, podcasts, radio News. 0:00:10.000 --> 0:00:13.160 Good morning, I'm Nathan Hager and I'm Karen Moscow. Here 0:00:13.200 --> 0:00:14.920 are the stories we're following today. 0:00:15.120 --> 0:00:18.160 Karen, let's start with Netflix share surging to an all 0:00:18.200 --> 0:00:21.320 time hight right now through up more than fourteen percent. 0:00:21.640 --> 0:00:25.159 The streaming giant added eighteen point nine million customers in 0:00:25.200 --> 0:00:29.360 the fourth quarter. That's its biggest quarterly subscriber gain in history. 0:00:29.680 --> 0:00:31.760 It was fueled by the return of Squid Game and 0:00:31.840 --> 0:00:35.600 having its first major live sporting events. Ted Sarandos is 0:00:35.640 --> 0:00:38.040 the co chief executive officer of Netflix. 0:00:38.560 --> 0:00:42.720 We are constantly trying to broaden our programming and live 0:00:42.760 --> 0:00:45.400 events is one of those things, and sports is part 0:00:45.400 --> 0:00:48.280 of that live of those live of those live events. 0:00:48.560 --> 0:00:50.800 So when I look at this and say, that's a 0:00:50.840 --> 0:00:53.440 really fantastic thing, but deno do we But it doesn't 0:00:53.440 --> 0:00:57.120 really change the underlying economics of full season Big league 0:00:57.120 --> 0:01:01.240 sports being extremely challenging. If there was a path where 0:01:01.280 --> 0:01:04.200 we could actually make the economics worth work for both 0:01:04.319 --> 0:01:06.400 us and the league, we certainly would explore. 0:01:06.640 --> 0:01:09.759 That's Netflix co CEO Ted Surranders. He says the company's 0:01:09.800 --> 0:01:13.399 raising prices. The most popular US plan is going to 0:01:13.480 --> 0:01:16.520 seventeen dollars ninety nine cents a month. That's an increase 0:01:16.520 --> 0:01:20.040 of two dollars fifty cents. Netflix is also increasing the 0:01:20.080 --> 0:01:23.000 cost of its cheaper advertising supported plan. 0:01:23.920 --> 0:01:26.240 Well, John, Netflix is helping to give a boost to futures. 0:01:26.280 --> 0:01:28.720 This morning, so is Donald Trump's plan to boost the 0:01:28.800 --> 0:01:32.520 US's plans for artificial intelligence. The President has announced a 0:01:32.600 --> 0:01:36.240 US joint venture with soft Bank, open Ai, and Oracle 0:01:36.319 --> 0:01:40.280 to fund the expansion of AI infrastructure. Dubbed Stargate. The 0:01:40.319 --> 0:01:44.080 project will deploy one hundred billion dollars immediately, with plans 0:01:44.120 --> 0:01:47.120 to increase that to at least five hundred billion. Open 0:01:47.160 --> 0:01:50.720 Ai CEO Sam Altman announced the venture next to the President. 0:01:51.000 --> 0:01:52.680 I'm thrilled we get to do this in the United 0:01:52.720 --> 0:01:54.760 States of America. I think this will be the most 0:01:54.800 --> 0:01:57.440 important project of this era. And as Masa said, for 0:01:57.480 --> 0:01:59.520 AGI to get built here, to create one hundreds of 0:01:59.560 --> 0:02:02.520 thousands of jobs, to create a new industry centered here, 0:02:02.680 --> 0:02:04.680 we wouldn't be able to do this without you, mister President, 0:02:04.960 --> 0:02:06.720 and I'm thrilled that we get to I think it'll 0:02:06.760 --> 0:02:09.240 be an exciting project. I think we'll be able to 0:02:09.400 --> 0:02:11.760 do all of the wonderful things that these guys talked about. 0:02:11.840 --> 0:02:13.120 But the fact that we get to do this in 0:02:13.160 --> 0:02:16.280 the United States is I think wonderful. 0:02:16.880 --> 0:02:21.480 Allman's company, open Ai will oversee operations armholdings, Microsoft and 0:02:21.560 --> 0:02:25.120 in Video will provide technology along with Oracle and open Ai. 0:02:25.560 --> 0:02:29.880 The announcement comes after Trump rescinded Biden's sweeping executive order 0:02:29.960 --> 0:02:33.280 on AI. Stocks are moving on this new venture. Shares 0:02:33.280 --> 0:02:35.720 of Oracle are up eight percent, in Video more than 0:02:35.760 --> 0:02:39.120 two point six percent, and Microsoft one and a half percent. 0:02:39.480 --> 0:02:42.960 Soft Bank shares searched ten percent in Asia well. 0:02:43.000 --> 0:02:45.960 The President also said he'd be open to Oracle chairman 0:02:46.080 --> 0:02:50.440 Larry Allison or Elon Musk purchasing TikTok as part of 0:02:50.480 --> 0:02:52.320 a venture with the US government. 0:02:53.160 --> 0:02:55.720 The deal, I think is this, and I've met with 0:02:55.960 --> 0:03:00.240 owners of TikTok, the big owners. It's worthless if it 0:03:00.240 --> 0:03:02.320 doesn't get a permit. It's not like, oh, you can 0:03:02.360 --> 0:03:05.160 take the US. The whole thing is worthless. With a 0:03:05.160 --> 0:03:08.160 permanent it's worth like a trillion dollars. So what I'm 0:03:08.160 --> 0:03:11.280 thinking about saying to somebody is buy it and give 0:03:11.360 --> 0:03:14.040 half to the United States of America half, and we'll 0:03:14.040 --> 0:03:16.040 give you the permit. And they'll have a great partner 0:03:16.040 --> 0:03:17.040 in the United States. 0:03:17.280 --> 0:03:20.840 Well, TikTok temporarily went offline over the weekend. Trump signed 0:03:20.880 --> 0:03:23.440 an executive order on his first day in office to 0:03:23.520 --> 0:03:26.480 extend the deadline for a sale by seventy five days. 0:03:26.880 --> 0:03:31.079 Billionaire Frank mccoort and Shark Tank investor Kevin O'Leary made 0:03:31.080 --> 0:03:34.120 a formal offer to buy TikTok earlier this month. 0:03:34.639 --> 0:03:37.520 Hey Male, John and Davos, Switzerland, business leaders of the 0:03:37.520 --> 0:03:40.840 World Economic Forum, breed this sigh of relief when President 0:03:40.840 --> 0:03:43.680 Trump's first day of his second term ended with talk 0:03:43.760 --> 0:03:47.800 of tariffs rather than any implementation, but they're still concerned 0:03:47.840 --> 0:03:51.840 about the global impact of Trump's plans. IBM vice chairman 0:03:51.880 --> 0:03:54.920 and former top Trump advisor Gary Cohen spoke to Bloomberg 0:03:54.920 --> 0:03:57.560 at the World Economic Forum, saying there will be a 0:03:57.600 --> 0:04:00.400 lot of deliberation before tariffs are put into place. 0:04:00.680 --> 0:04:04.200 Even when I was there eight years ago, there was always. 0:04:03.840 --> 0:04:09.200 A heavy debate on tariffs, on the positives and the 0:04:09.240 --> 0:04:13.520 negatives of tariffs, on the intended consequences and the unintended consequences. 0:04:13.720 --> 0:04:17.200 You know, it's day one of a four year administration. 0:04:17.560 --> 0:04:19.919 You don't have to put tariffs on day one. 0:04:19.920 --> 0:04:22.800 And IBM Vice chairman Gary Cohane also told Bloomberg that 0:04:22.839 --> 0:04:26.599 the corporate community remains optimistic a second Trump term will 0:04:26.640 --> 0:04:27.960 be positive for business. 0:04:28.480 --> 0:04:31.640 And Trump has widened his tariff threats to include China 0:04:31.680 --> 0:04:34.640 and the European Union a day after he saw Canada 0:04:34.760 --> 0:04:36.919 and Mexico. In his sits, we're. 0:04:36.760 --> 0:04:40.479 Talking about a tariff of ten percent on China based 0:04:40.520 --> 0:04:42.840 on the fact that this ending fenton all to Mexico 0:04:42.920 --> 0:04:43.479 in Canada. 0:04:44.320 --> 0:04:48.120 The threats echo comments made throughout Trump's campaign, but the 0:04:48.160 --> 0:04:51.120 only actual action taken so far is a call for 0:04:51.200 --> 0:04:56.039 a review of trade practices that's due April first, potentially 0:04:56.040 --> 0:04:59.160 giving China and others almost ten weeks to avert new 0:04:59.240 --> 0:05:02.360 levies or address his demands well. 0:05:02.400 --> 0:05:06.200 John Trump is also taking steps to cut funding for diversity, equity, 0:05:06.200 --> 0:05:08.880 and inclusion. The White House says those roles will be 0:05:08.920 --> 0:05:12.000 placed on paid leave, and their offices related to those 0:05:12.040 --> 0:05:15.240 programs are being ordered to shut down. In a separate order, 0:05:15.279 --> 0:05:19.160 the administration moved to limit diversity preferences in federal contracting. 0:05:19.440 --> 0:05:22.000 That revokes a civil rights era order that sought to 0:05:22.040 --> 0:05:26.400 reduce racial or gender disparities among government contractors and. 0:05:26.400 --> 0:05:29.119 Camer We're finding out more about some of the people 0:05:29.120 --> 0:05:32.120 that Trump pardoned on day one of his term. One 0:05:32.360 --> 0:05:35.840 is Ross Albrich, the founder of the Silk Road marketplace 0:05:36.080 --> 0:05:39.479 that fulfills a campaign promise he made to core the 0:05:39.560 --> 0:05:44.240 cryptocurrency community. Albrooke was sentenced to life in prison in 0:05:44.279 --> 0:05:48.160 twenty fifteen for running a dark web marketplace where illegal 0:05:48.240 --> 0:05:52.159 drugs and hacker tools were sold using virtual currencies. 0:05:52.800 --> 0:05:55.400 And John federal workers they're not the only ones being 0:05:55.520 --> 0:05:58.600 ordered to return to the office full time. Sources A 0:05:58.720 --> 0:06:01.599 Major League Baseball to its employees to return to the 0:06:01.640 --> 0:06:04.240 office five days a week. The league had been on 0:06:04.320 --> 0:06:07.440 a hybrid policy since the pandemic and. 0:06:07.360 --> 0:06:10.520 Getting back to markets. Karen Indonesia says it's close to 0:06:10.560 --> 0:06:13.040 a deal with Apple over an investment plan that would 0:06:13.080 --> 0:06:16.039 lift a ban on iPhone sixteen sales in the country. 0:06:16.440 --> 0:06:19.240 Southeast Asia's largest country banned the sale of the new 0:06:19.279 --> 0:06:22.520 device back in October, saying Apple had failed to comply 0:06:22.600 --> 0:06:26.400 with domestic manufacturing requirements for smartphones and tablets. 0:06:27.320 --> 0:06:30.080 When we're watching shares have United Airlines take off. They're 0:06:30.120 --> 0:06:32.799 up almost three percent at early trading. John the carrier 0:06:32.839 --> 0:06:35.479 expects a first quarter profit well ahead of Wall Street's 0:06:35.560 --> 0:06:39.880 estimates as it capitalizes on unusually strong demand for premium 0:06:39.920 --> 0:06:43.640 and international travel. It's been a good time for United investors. 0:06:43.720 --> 0:06:46.320 Is stock climb one hundred and thirty five percent last year, 0:06:46.520 --> 0:06:48.560 compared with the twenty three percent gain for the S 0:06:48.600 --> 0:06:53.960 and P five hundred index. Time now for a look 0:06:53.960 --> 0:06:55.760 at some of the other stories making news in New 0:06:55.839 --> 0:06:57.680 York and around the world. And for that we're joined 0:06:57.680 --> 0:06:59.640 by Bloomberg's Michael Barr Michael Good. 0:06:59.520 --> 0:07:02.560 Morning, Morning Care. In twenty two states, including New York, 0:07:02.600 --> 0:07:06.040 New Jersey, and Connecticut, are filing a lawsuit against President 0:07:06.080 --> 0:07:10.160 Trump's executive order that would end birthright citizenship. It's a 0:07:10.240 --> 0:07:13.760 right stated in the fourteenth Amendment. New Jersey Attorney General 0:07:14.000 --> 0:07:18.640 Matt Platkin says Trump's order is unconstitutional and that presidents 0:07:18.720 --> 0:07:20.240 don't have the power to change it. 0:07:20.400 --> 0:07:21.240 They are not kings. 0:07:21.400 --> 0:07:24.240 They do not have the power to unilaterally rewrite the Constitution. 0:07:24.320 --> 0:07:27.320 They do not have the power to unilaterally disreard our laws. 0:07:27.680 --> 0:07:29.920 That's true for Donald Trump, that's true for every president 0:07:29.920 --> 0:07:31.720 that came before him, and every president who will come 0:07:31.760 --> 0:07:32.240 after him. 0:07:32.320 --> 0:07:32.560 A g. 0:07:32.680 --> 0:07:36.000 Platkin says he is confident this order is never going 0:07:36.040 --> 0:07:39.400 to take effect. New York City Mayor Eric Adams has 0:07:39.440 --> 0:07:42.520 some sharp words for the Democratic Party and reiterated his 0:07:42.680 --> 0:07:46.760 claim that he was targeted by federal prosecutors because he 0:07:46.800 --> 0:07:50.920 criticized then President Joe Biden's handling of the migrant influx. 0:07:51.240 --> 0:07:53.680 Mayor Adam spoke with Tucker Carlson. 0:07:53.360 --> 0:07:55.400 Because some people off to say, well, you know, you 0:07:55.400 --> 0:07:59.040 don't sound like a Democrat, and you know you seem 0:07:59.080 --> 0:08:01.600 to have left the party. No, the body left me, 0:08:01.840 --> 0:08:04.920 and it left working class people in our conversations that 0:08:04.960 --> 0:08:07.560 we should be talking about. This are not the issues 0:08:08.360 --> 0:08:11.560 that everyday people that are in power talking about. 0:08:11.600 --> 0:08:14.840 The interview was recorded from Graycia Mansion. Earlier, at his 0:08:15.000 --> 0:08:18.480 news briefing, Adams was asked about cooperating with ICE agents 0:08:18.520 --> 0:08:21.800 if they come to New York City to enforce deportations. 0:08:22.120 --> 0:08:25.360 We want to bring down the anxiety. We want our 0:08:25.400 --> 0:08:28.120 immigrants to know that this is a city immigrants, this 0:08:28.160 --> 0:08:31.440 is a country of immigrants. It's imperative that you go 0:08:31.520 --> 0:08:34.520 to school, use hospital service, to use the police services. 0:08:34.559 --> 0:08:36.800 I went over this over and over again, and I'm 0:08:36.800 --> 0:08:38.880 just not going to keep having the same conversation over 0:08:38.920 --> 0:08:39.520 and over again. 0:08:40.000 --> 0:08:44.199 The Trump administration announced it would allow federal immigration agencies 0:08:44.240 --> 0:08:47.679 to make arrests at schools, churches, and hospitals. A winder 0:08:47.720 --> 0:08:50.280 storm that drop record breaking snow in New Orleans has 0:08:50.320 --> 0:08:53.680 spread into Florida and the Carolinas. Meanwhile, a blast of 0:08:53.760 --> 0:08:56.920 arctic air has also plunged much of the Midwest and 0:08:57.040 --> 0:09:00.320 the Eastern US into a deep freeze. Global News twenty 0:09:00.320 --> 0:09:02.720 four hours a day, and whatever you wanted with Bloomberg 0:09:02.760 --> 0:09:05.920 News Now, I'm Michael Barr, and this is Bloomberg Carroen. 0:09:06.400 --> 0:09:12.959 All right, Michael Barr, thank you time now for the 0:09:13.000 --> 0:09:15.680 Bloomberg Sports Update, brought to you by Tri State OHTI. 0:09:15.760 --> 0:09:16.839 Here's John Stashauer. 0:09:16.960 --> 0:09:18.960 John, good morning, Good morning care. The Knicks had been 0:09:19.120 --> 0:09:23.520 exchanging wins and losses throughout January, no two game winning 0:09:23.520 --> 0:09:25.840 your losing streaks until now. The night after the win 0:09:25.920 --> 0:09:28.079 over Atlanta at the Garden, they went to Brooklyn got 0:09:28.080 --> 0:09:31.040 by the Nets ninety nine ninety five Karl Anthony Towns 0:09:31.280 --> 0:09:34.080 twenty five points, sixteen rebounds. Nets have lost nine of 0:09:34.120 --> 0:09:37.400 ten and nine straight versus. The next Lakers beat the 0:09:37.440 --> 0:09:40.640 Wizards by twenty three. The Nuggets beat the Sixers by 0:09:40.720 --> 0:09:43.040 thirty five. The Rangers an easy win at the Garden 0:09:43.080 --> 0:09:46.720 five nothing over Ottawa five different goal scorers, including power 0:09:46.760 --> 0:09:49.000 play tallies less than the minute apart in the third period, 0:09:49.040 --> 0:09:52.040 first Art Timmy Paner and then Will Cooley. Capital's fifth 0:09:52.040 --> 0:09:54.520 Stray win three two at Edmonton's Seaton Hall, lost to 0:09:54.640 --> 0:09:57.640 Marquette Pirates held to one and seven in the Big East. 0:09:57.720 --> 0:09:59.280 Three new members of the Baseball Hall of Fame. 0:09:59.320 --> 0:10:02.360 They all played in New York, including CC Sabathia, the 0:10:02.440 --> 0:10:05.439 Yankee ace for eleven seasons starting in two thousand and 0:10:05.559 --> 0:10:07.600 nine when he played a big role on the yanks 0:10:07.720 --> 0:10:10.960 last championship team. Sabathia goes in first year on the 0:10:11.000 --> 0:10:13.439 ballot and on the MLB Network talked about what he 0:10:13.520 --> 0:10:15.160 was proud to do on the mound. 0:10:15.559 --> 0:10:18.040 Oh, that was something that was important to me, was 0:10:18.040 --> 0:10:20.760 to be able to be available, you know, and take 0:10:20.800 --> 0:10:22.720 the balls as many times as possible during the season. 0:10:22.800 --> 0:10:25.320 And you know, I wanted my guys in the clubhouse 0:10:25.360 --> 0:10:27.160 so we're in the locker room, to feel like every 0:10:27.160 --> 0:10:28.600 time I went out there every fifth day, that we 0:10:28.640 --> 0:10:31.600 had a chance to win. And you know, if I 0:10:31.720 --> 0:10:33.040 was available, I was going to take the. 0:10:32.960 --> 0:10:35.320 Ball CEC got eighty seven percent of the vote. His 0:10:35.360 --> 0:10:38.800 one time Yankee teammate Etro Suzuki got ninety nine all 0:10:38.800 --> 0:10:41.400 but one vote, so Mariano Rivera is still the only 0:10:41.440 --> 0:10:44.240 one to go in unanimously. Hetro, of course, a hit 0:10:44.400 --> 0:10:47.000 machine both in Japan and the Majors, mostly with Seattle. 0:10:47.000 --> 0:10:50.120 Reliever Billy Wagner got in in his tenth and final 0:10:50.200 --> 0:10:52.280 year on the ballot. His best seasons were in Houston, 0:10:52.280 --> 0:10:54.319 but he also spent three years with the Mets as 0:10:54.360 --> 0:10:56.920 Aaron Glenn yesterday had his second interview for the Jets 0:10:57.000 --> 0:10:59.079 coaching job. There was an ESPN report that he was 0:10:59.120 --> 0:11:01.880 about to get higher. Didn't happen, and Glenn is now 0:11:01.880 --> 0:11:04.000 said to be heading to New Orleans for a second 0:11:04.000 --> 0:11:07.880 interview with the Saints. John Stashew with Bloomberg Sports Karen John. 0:11:10.120 --> 0:11:14.160 Coast to coast on Bloomberg Radio, nationwide on Sirius Exam, 0:11:14.440 --> 0:11:17.280 and around the world on Bloomberg dot Com and the 0:11:17.320 --> 0:11:18.520 Bloomberg Business app. 0:11:18.800 --> 0:11:20.960 This is Bloomberg Daybreak. 0:11:20.960 --> 0:11:23.520 And we continue our coverage of the World Economic Forum 0:11:23.559 --> 0:11:26.200 from Davos this morning. In a conversation with Bank of 0:11:26.240 --> 0:11:30.000 America CEO Brian boynihan. He sat down with our Jonathan 0:11:30.000 --> 0:11:33.120 Ferrell and Lisa Brammle with some Bloomberg surveil. It's discussing 0:11:33.120 --> 0:11:37.280 how AI's impacting business a succession plan at the bank, 0:11:37.679 --> 0:11:40.720 and they start with the outlook for deals in a 0:11:40.880 --> 0:11:42.640 second Trump term. Let's listen in. 0:11:43.240 --> 0:11:46.840 What you're hearing is enthusiasm for an investment banking side 0:11:46.840 --> 0:11:49.480 of particularly transactions right for long time, for the last 0:11:49.800 --> 0:11:52.320 couple of years, it's been hard to get a transaction through. 0:11:52.360 --> 0:11:54.959 And what stops the seller from selling or buyer from 0:11:54.960 --> 0:11:57.480 buying is this thing is delayed. I'm exposed and so 0:11:57.600 --> 0:11:59.320 what they'll do is to push it through. So there's 0:11:59.320 --> 0:12:02.120 a lot of enthusiasm that they'll be better growth United States, 0:12:02.200 --> 0:12:04.520 a lot of enthusiasm by the bankers saying these deals 0:12:04.559 --> 0:12:06.640 can get done, so I can go have this future conversation. 0:12:06.960 --> 0:12:09.439 It's just not another idea that goes through the system 0:12:09.480 --> 0:12:11.480 and everybody says that's a great idea, but it not 0:12:11.559 --> 0:12:13.120 can be a great idea, let's go do it, or 0:12:13.559 --> 0:12:14.840 a great idea, I don't want to do it. But 0:12:14.880 --> 0:12:16.800 it's a more of a substance space than it is, 0:12:17.080 --> 0:12:19.080 more of a worry about the environment around us. 0:12:19.080 --> 0:12:21.360 Are you basically saying that there's more enthusiasm, that there 0:12:21.400 --> 0:12:23.440 is conviction and will to actually get stuff done. 0:12:23.559 --> 0:12:25.880 Yeah, I think you saw some deals getting announced and 0:12:25.880 --> 0:12:28.360 you'll see more deals getting announced in our sector. In banking, 0:12:28.440 --> 0:12:31.880 especially in the United States, the consolidation is still far 0:12:31.920 --> 0:12:32.920 away from being. 0:12:34.640 --> 0:12:35.040 Done. 0:12:35.320 --> 0:12:37.360 They'll always be big banks or always be small banks, 0:12:37.400 --> 0:12:39.319 but you'll let people make a decision what they want 0:12:39.320 --> 0:12:39.400 to do. 0:12:39.440 --> 0:12:41.160 And there haven't been a lot of bank deals done. 0:12:41.320 --> 0:12:43.720 Bank to bank deals we can't do them, it's not legal, 0:12:43.760 --> 0:12:46.480 but as investment banking, we can help other people do them, 0:12:46.520 --> 0:12:48.200 and it haven't been a lot done because just uncertainly 0:12:48.200 --> 0:12:50.720 you're getting caught in the transaction and having issues. So 0:12:50.800 --> 0:12:53.920 the belief that they should promote the banks consoliding and 0:12:53.920 --> 0:12:56.160 getting more efficient, passing that through the customers, passing it 0:12:56.280 --> 0:13:00.560 through to small businesses, et cetera, is a different change. 0:13:00.600 --> 0:13:03.240 Well, there's the banking sector specifically in some of the 0:13:03.320 --> 0:13:06.000 deregulation and whether some of these mergers and consolidation will 0:13:06.040 --> 0:13:08.240 be a lot, and then there's a broader corporate sector. 0:13:08.240 --> 0:13:10.320 As some of the enthusiasm we've seen and we've heard 0:13:10.320 --> 0:13:12.520 from the cities a head of banking. 0:13:12.280 --> 0:13:13.160 From JP Morgan. 0:13:14.440 --> 0:13:17.880 How much do you see that being maybe a little premature. 0:13:18.200 --> 0:13:21.040 Well, I think you have to divorce a little bit 0:13:21.080 --> 0:13:23.800 some of the fiscal work that has to be done, 0:13:23.840 --> 0:13:26.480 and in coming Treasury Secretary and others have to take 0:13:26.600 --> 0:13:28.600 very seriously this question of how do we manage the 0:13:28.640 --> 0:13:31.240 revenue stream, the expense stream, and the amount of debt 0:13:31.320 --> 0:13:31.640 and get. 0:13:31.559 --> 0:13:33.240 It all to work out that. 0:13:33.720 --> 0:13:35.320 One of the way is that that becomes easier if 0:13:35.360 --> 0:13:38.560 you have more activity and more things going on. So 0:13:38.640 --> 0:13:40.640 I think the enthusiasm you're here from the bankers is 0:13:40.679 --> 0:13:45.560 more Structurally, the belief is that even starting yesterday, you 0:13:45.640 --> 0:13:47.640 don't have you don't. 0:13:47.520 --> 0:13:49.160 Have the constraint that you have, so you can go. 0:13:49.480 --> 0:13:53.120 If there's more that enables more, that's good stuff, But 0:13:53.200 --> 0:13:54.520 right now it'll stop it. 0:13:54.480 --> 0:13:56.160 Going in our wrong direction. And look hard. 0:13:56.200 --> 0:13:59.560 Medium small sized businesses, their biggest complaint was you're in 0:13:59.559 --> 0:14:02.320 my pocket. You're slow me down. I can't get things done. 0:14:02.559 --> 0:14:04.280 I want to permit to do something, it takes forever. 0:14:04.320 --> 0:14:07.240 I want your labor rules. All this stuff was going 0:14:07.240 --> 0:14:09.120 on and they're figuring out their own The same person's 0:14:09.200 --> 0:14:11.400 running the business at nice sittingers say, so, what is 0:14:11.440 --> 0:14:14.640 this new taxation strategy on? So security mean they're just 0:14:14.640 --> 0:14:16.640 saying if you just stop, things will get better. 0:14:16.760 --> 0:14:19.320 We keep hearing about succession plans in different places. 0:14:19.640 --> 0:14:20.720 What's your succession plan? 0:14:20.880 --> 0:14:21.840 But you're trying to throw me out. 0:14:22.120 --> 0:14:23.080 No, no, not at all. 0:14:23.200 --> 0:14:25.120 I'm just wondering because this is something. 0:14:24.880 --> 0:14:27.640 That we. 0:14:28.520 --> 0:14:32.680 Lost questions, the fascination with all this is interesting and 0:14:32.800 --> 0:14:34.320 one just means we're all getting older. 0:14:34.360 --> 0:14:37.440 So Therealty is we run. We run across in our 0:14:37.440 --> 0:14:41.120 company through the top three layers, including for the CEO succession. 0:14:41.360 --> 0:14:43.960 Every six months we go through everything who the media successors, 0:14:44.040 --> 0:14:46.640 for every one of our teammates jobs, and we have 0:14:46.680 --> 0:14:48.640 a slate and we go from a slip because if 0:14:48.640 --> 0:14:51.520 we run a company, people leave for a whole, they retire, 0:14:51.880 --> 0:14:54.720 they get another job, whatever, and you're always filling jobs. 0:14:54.720 --> 0:14:56.440 And so with the way, the board will make a 0:14:56.520 --> 0:14:59.520 choice at some point, I'm not going anywhere unless they 0:14:59.600 --> 0:15:00.000 throw me out. 0:15:00.560 --> 0:15:01.240 They know that. 0:15:01.440 --> 0:15:03.520 But my job, and one of the biggest jobs I have, 0:15:03.720 --> 0:15:06.960 is preparing people for the what it would be like 0:15:07.000 --> 0:15:11.480 to run this company out there, and that's important. So 0:15:11.520 --> 0:15:12.920 we do a lot with our team to get them 0:15:12.960 --> 0:15:14.880 used to experiences and get them to learn more about 0:15:15.080 --> 0:15:16.360 the trade offs you have to make at the top 0:15:16.400 --> 0:15:18.040 of the house, because if you come through a business 0:15:18.320 --> 0:15:20.600 or come through a function, you haven't made those trails. 0:15:20.600 --> 0:15:22.840 That's part of our general strategy. And so we talked 0:15:22.840 --> 0:15:23.240 to our board. 0:15:23.280 --> 0:15:25.880 But you'll never hear us discuss A is in and 0:15:25.920 --> 0:15:28.280 B is That to me, is the worst thing you 0:15:28.280 --> 0:15:28.520 can do. 0:15:28.560 --> 0:15:30.280 I went through that process in the end of two 0:15:30.280 --> 0:15:32.200 thousand and nine. Whether the it's day to day speculation, 0:15:32.560 --> 0:15:34.160 that's not the way to do it. Well, thank you 0:15:34.160 --> 0:15:35.560 for that very much. You'll be the first person. 0:15:35.720 --> 0:15:36.320 Okay, thank you. 0:15:36.400 --> 0:15:38.600 I appreciate that we only have about thirty seconds. You 0:15:38.600 --> 0:15:40.560 said something to us when we were at Bank of 0:15:40.600 --> 0:15:44.320 America that AI would basically keep the staff the same 0:15:44.360 --> 0:15:47.280 size but increase the footprint of business. Do you stand 0:15:47.320 --> 0:15:47.600 by that? 0:15:48.080 --> 0:15:51.280 Yeah, there are two facts I'll give you. One is 0:15:51.320 --> 0:15:53.760 we run the company on the nominal amount of dollars 0:15:53.800 --> 0:15:56.920 of expenses we did ten years ago almost now nominal 0:15:57.000 --> 0:15:58.840 or not not inflation just and we run it on 0:15:58.920 --> 0:16:02.240 thirty thousand less people. That is all digitization and AI 0:16:02.520 --> 0:16:04.400 is an extension of automation. 0:16:04.480 --> 0:16:06.400 Digitization models ET cetera. 0:16:06.760 --> 0:16:09.600 Automating work, taking out work, and automated therefore you don't 0:16:09.600 --> 0:16:12.120 need and I think it keeps going. The idea is, 0:16:12.160 --> 0:16:14.640 if we're good, we'll keep adjusting where the. 0:16:14.600 --> 0:16:15.440 Teammates end up. 0:16:15.480 --> 0:16:17.600 So it might not be the same turn twelve thousand 0:16:17.640 --> 0:16:19.880 people two hundred and thirteen thousand people doing the same 0:16:19.880 --> 0:16:21.880 thing ten years from now. Yeah, but my guess is 0:16:21.880 --> 0:16:24.120 that our employment levels will stay relatively Saturday. 0:16:24.320 --> 0:16:26.760 Work towards stuff that can't be replicated near turn by air. 0:16:27.000 --> 0:16:29.920 This is Bloomberg day Break, your morning podcast on the 0:16:30.000 --> 0:16:33.440 stories making news from Wall Street to Washington and beyond. 0:16:33.760 --> 0:16:36.120 Look for us on your podcast feed by six am 0:16:36.200 --> 0:16:39.600 Eastern each morning, on Apple, Spotify, or manywhere else you listen. 0:16:39.840 --> 0:16:42.640 You can also listen live each morning starting at five 0:16:42.680 --> 0:16:45.320 am Wall Street Time on Bloomberg eleven three to zero 0:16:45.440 --> 0:16:48.280 in New York, Bloomberg ninety nine to one in Washington, 0:16:48.400 --> 0:16:51.680 Bloomberg ninety two to nine in Boston, and nationwide on 0:16:51.880 --> 0:16:54.040 serious XM Channel one twenty one. 0:16:54.480 --> 0:16:57.160 Plus listen coast to coast on the Bloomberg Business app 0:16:57.280 --> 0:17:00.360 now with Apple CarPlay and Android Atto interface it and 0:17:00.440 --> 0:17:01.200 don't forget. 0:17:00.960 --> 0:17:04.080 To subscribe to Bloomberg News Now. It's the latest news, 0:17:04.160 --> 0:17:07.120 whenever you want it in five minutes or less. Search 0:17:07.160 --> 0:17:10.200 Bloomberg News Now on your favorite podcast platform to stay 0:17:10.240 --> 0:17:13.400 informed all day long. I'm Karen Moscow. 0:17:13.280 --> 0:17:15.760 And I'm Nathan Hager. Join us again tomorrow morning for 0:17:15.840 --> 0:17:17.760 all the news you need to start your day right 0:17:17.800 --> 0:17:19.040 here on Bloomberg Day. 0:17:19.119 --> 0:17:19.239 Ray