ROMAIN: CLOSING OUT A BIG WEEK FOR BIG TECH. ALIX: HAPPY FRIDAY I GUESS. ROMAINE: GOOD FRIDAY. >> THE S&P IS DOWN.
A LACK OF CONFIDENCE IN THE ECONOMY. INDUSTRIALS, THE WORST PERFORMING SECTOR IN THE S&P. EARLY CYCLE PLAYS NOT DOING WELL.
CARNIVAL, NORWEGIAN CRUISE, WORST ON THE S&P. THANK OF AMERICA SAYING THE PRICING IS NOT AS GOOD AS INMATE. -- IN MAY. OVER THE WHEAT, WE'VE SEEN 22 BASIS POINTS DOWN WITH THE 10 YEAR. ROMAINE: 59 MINUTES TO THE BELLS. THIS WEEK WAS A BIG ONE FOR BIG TECH.
APPLE REASSERTING ITSELF WITH ITS FIRST RECORD HIGHS OF THE YEAR. 17% GAIN, PRIOR SIX WEEKS. >> APPLE HAS REGAINED ITS THRONE HERE. PICKUP IN CHINA AND TALKS OF AI INTEGRATION. ROMAINE: FITTING FOR APPLE TO JOIN THIS PARTY.
THE COOL KIDS HAVE MAINLY BEEN BIG TECH, INCLUDING THE NEW KIDS ON THE BLOCK BUT ALSO THE OLD NAMES. ON A WEEKLY BASIS, THE S&P TECH SECTOR OUTPERFORMING THE S&P BY THE MOST SINCE 2002. YOU HEARD ME. INDUSTRIAL STOCKS HAVING A WEEK TO FORGET, THE WORST PERFORMING SECTOR AFTER EMBASSY INDUSTRIAL SAID THEIR ORIGINAL MANUFACTURING CUSTOMERS ARE SITTING ON TOO MUCH INVENTORY AND SCALING BACK NEW PRODUCTION. ANXIETY AROUND THE MANUFACTURING ECONOMY BUT OPTIMISM AROUND AI. ALIX:
ISM MANUFACTURING MEMBERS REFLECTED HERE. APPLE'S CATCH UP. THE WHITE LINE IS APPLE AND THE ORANGE LINE IS THE MAG SEVEN.
IT'S INTERESTING TO THINK WHY. IS THERE SOMETHING TO BE SAID FOR THE CYCLE? IS IT MUTUAL FUNDS DON'T OWN A LOT OF APPLE AND THEY HAVE TO? ROMAINE: JEREMY SIEGEL, PROFESSOR EMERITUS OF FINANCE AT THE WHARTON SCHOOL. WE TALK ABOUT THE PROMISE OF AI. WE ARE ALSO TALKING ABOUT CRACKS IN THE INDUSTRIAL SIDE OF THIS ECONOMY.
JEREMY: YESTERDAY WHEN I SAW THE JOBLESS CLAIMS, THAT CONCERN TO ME. IT'S A VOLATILE SERIES. WE ARE SEEING SOFTNESS. THE TECH IS SUCKING UP THE OXYGEN. THERE IS FOMO GOING ON AMONG MANAGERS. IF THEY DON'T OWN APPLE, NVIDIA, MICROSOFT, THEY WILL BE FALLING BEHIND. END OF JUNE, SIX MONTHS PORTFOLIOS, THEY HAVE TO SHOW THEY OWN THESE STOCKS THAT HAVE GONE UP.
A NARROWING MARKET IS NOT USUALLY A GREAT SIGN FOR GAINS. ROMAINE: MONEY MANAGERS HAVE TO SHOW THEY ARE PART OF THE PARTY. A LOT OF THEM ARE ON THE SIDELINES. IS IT TOO LATE FOR THAT? IS THERE TIME FOR THAT? JEREMY: THE TREND CAN CONTINUE LONGER. IT ALMOST ALWAYS DOES UNTIL THE STOCKS ARE FORCED TO CORRECT.
NOW, LISTEN, THESE STOCKS ARE DELIVERING THE BACON. THE EARNINGS. NVIDIA 50 TIMES FORWARD, THE OTHERS MORE TOWARD 35. THE BIGGEST OUTPERFORMANCE IN 20 YEARS. IT WAS 20 YEARS AGO, THESE STOCKS WERE SELLING 200 TIMES EARNINGS, CISCO AND A FEW OTHERS.
ALIX: OVERALL, 27 ALL-TIME HIGHS ON THE S&P THIS YEAR. IT GETS RIDICULOUS. JEREMY: IT'S BEEN 20 YEARS SINCE I'VE SEEN OUTPERFORMANCE THIS HIGH. GROWTH STOCKS VERSUS VALUE STOCKS. I'M IN FAVOR. LONG-RUN, THEY OUTPERFORM. MANAGERS ARE SUFFERING. SOME OF THEM ARE GIVING UP THE GHOST. IF I DON'T OWN SOME OF THESE, I WILL FALL TOO MUCH BEHIND.
RIGHT NOW IN THIS ENVIRONMENT, WHERE WE SEE SOFTENING IN THE REAL INDICATORS, THE FED SAYING IT WAS STUBBORN ON HOW MANY RATES IT WOULD CUT, I THINK THEY WILL COME MORE, AFTER SOME STUFF, DATA WE HAVE SEEN, YOU BEGIN TO WONDER SHOULD I BE IN SMALL STOCKS? NO. CYCLICAL STOCKS? NO. WHERE'S MY REFUGE? APPLE AND NVIDIA. ALIX: THE AMOUNT OF RETAIL IN THE MARKET NOW SURPASSES WHAT WE SAW TWO YEARS AGO. WHAT ARE SIGNS FOR YOU OF A BLOW OFF? JEREMY: YOU GET ALMOST A VERTICALITY. I DON'T SEE THAT VERTICAL WHERE YOU SEE STOCKS GO UP 10% PER DAY.
INCREDIBLE TO THINK OF A $3 TRILLION STOCK -- APPLE INTO DAYS GOING UP BY 10%, THAT'S UNPRECEDENTED. WHAT YOU USUALLY SEE AT THE TOP IS A SURGE. EVERYONE GETTING IN IN THE MORNING. A ONE-DAY REVERSAL.
USUALLY THAT'S ONE OF THE MARKERS. THERE IS USUALLY ANOTHER RALLY THAT STARTS TO TRY AND MAKE IT. IT DOESN'T QUITE. SEE THE INTEREST MADE IN THE GROUP. ROMAINE: WHEN WE START TO TALK ABOUT HOW THE MARKET ADJUSTS TO THE POTENTIAL, WE COULD SEE A CHANGE IN MONETARY POLICY THIS YEAR, IN ECONOMIC CONDITIONS, IN OUR POLITICAL PICTURE IN NOVEMBER, IS THERE ANY INCENTIVE TO BE INVESTED HEADING INTO THAT? JEREMY: LOOK AT S&P LOOKING FORWARD, 2122. THAT'S A LITTLE EXPENSIVE.
TAKE OUT TECH. YOU ARE AT 17. THAT'S NOT EXPENSIVE. THAT ARGUES FOR NOT GOING INTO DEBT. LOOK AT DAY-TO-DAY PERFORMANCE. THAT'S THE TENSION THAT IS BOMBARDING INVESTORS FROM A LONG-TERM STANDPOINT. I SHOULD BE CAUTIOUS ON TECH.
BUT FROM A MOMENTUM STANDPOINT, IN THE SHORT RUN AND INTERMEDIATE, THIS IS A MOMENTUM DRIVEN MARKET. IF YOU ARE A SHORT TERM TRADER, YOU HAVE TO BE WHERE THE ACTION IS. ROMAINE: PROFESSOR, ALWAYS GREAT TO TALK TO YOU.
WHEN WE COME BACK, A CLOSER LOOK AT FOOTBALL OUTSIDE THE U.S. AS THE WORLD CUP COMES TO NORTH AMERICA. ALIX: WE WILL TALK WITH MICHELLE ALT AND HOW TO IMPROVE THE OVERSIGHT OF FINTECH COMPANIES. ROMAINE: WE WILL LOOK AT THE WORST PERFORMER IN THE RUSSELL 1000, REPORTING HEAVIER THAN EXPECTED LOSSES. STICK WITH US. ♪ ALIX: APPLE ADDS $300 BILLION IN MARKET CAP IN FIVE DAYS.
DAN IVES CURRENTLY HAS AN OUTPERFORM RATING ON THE SHARES. DO YOU THINK THIS IS AI DRIVEN OR MUTUAL FUNDS GOT TO BUY IT? DAN: HISTORICAL WEEK. THE AI WILL LEAD TO GROWTH.
IT IS 9 P.M. IN THE AI PARTY. ALIX: THAT'S A GREAT QUOTE. I'M GOING TO STEAL THAT PUPPY. WHAT ABOUT MUTUAL FUNDS? DAN: IT WAS VERY UNDER OWNED. MANY HAVE MISSED THE FOREST FOR THE TREES.
YOU STILL HAVE A TOUGH JUNE QUARTER. WHEN YOU GO TO IPHONE 16 AND AI, THERE IS A POPCORN MOMENT. THIS IS THE START OF AN AI DRIVEN SUPER CYCLE.
ROMAINE: PEOPLE ARE LOOKING AHEAD TO THAT RELEASE. IS AI GOING TO BE THAT PUSH? THOSE OF US WHO HAVE NOT UPGRADED IN A WHILE, THIS WILL TIP US OVER? AI? DAN: IT IS. COOK TALKED ABOUT IT. $270 MILLION. THIS WILL BE AN UNPRECEDENTED UPGRADE CYCLE IN THE NEXT TWO YEARS. $4 TRILLION MARKET CAP. ROMAINE: WITHIN A YEAR? DAN: NVIDIA, MICROSOFT AND APPLE. ALIX: WE ARE AT $3.3 TRILLION SO IT
IS NOT THAT FAR. WHEN YOU HAVE OVERHANGS, LIKE THE EU, LOOKING AT APPLE GOING AGAINST DIGITAL MARKET LAWS, HOW DO YOU THE NOTORIOUS BULL LOOK AT THAT? DAN: THE DOJ ISSUE IS MORE IMPORTANT. IN THE NEAR TERM, THE EU, GETTING SCRUTINY FROM THE EU FOR APPLE IS LIKE GETTING A CAPPUCCINO IN THE MORNING.
I DON'T WORRY ABOUT THAT. WE ARE ON THE PRECIPICE OF A NEW AGE FOR APPLE. ALIX: I DON'T KNOW WHERE TO GO AFTER THAT. WHAT ARE THE ANCILLARY PLAYS IN TECH? DAN: THE AI REVOLUTION.
SEMIS WOULD BE A HUGE TAILWIND. WE ARE SEEING THE FOURTH DERIVATIVES OF AI PLAY OUT. THE CONSUMER AI REVOLUTION NOW GOES THROUGH THE WALLS OF APPLE. ROMAINE: ALWAYS GREAT TO TALK TO YOU. APPLE DOWN ON THE DAY. PHENOMENAL WEEK.
MULTIPLE RECORD HIGHS EARLIER THIS WEEK. IT IS PLAUSIBLE WE COULD SEE THAT CYCLE. THE LAST FEW UPDATES, YOU ARE LIKE, I DON'T NEED ANOTHER PIXEL. ALIX: BACK TO THE MUTUAL FUNDS. THE AVERAGE HOLD APPLE AS A 250 BASIS POINT UNDERWEIGHT. FANCY WAY OF SAYING, NOT A LOT OF MUTUAL FUNDS OWN IT. ROMAINE: THEY HAVE TO SHOW GROWTH. APPLE IS A STABLE COMPANY.
IT DOESN'T HAVE THAT GROWTHINESS YOU SEE FROM NVIDIA. ALIX: THE PERFECT STORM. THEY HAD THE CONFERENCE. REFRESH CYCLE. THE POSITIONING COMING TOGETHER. ROMAINE: THEY ALSO HAVE TO GET IT RIGHT. SIRI WAS SUPPOSED TO BE GREAT. WE SAW HOW THAT WORKED OUT.
ALIX: THE APPLE WILL GO FULL THROTTLE. ROMAINE: WE WILL SEE TOWARD THE END OF THE YEAR. NOT MUCH OF AN UPGRADE CYCLE GOING ON IN THE FURNITURE SPACE. SOFTER DEMAND GROWTH FROM RH, SENDING THOSE SHARES DOWN PHENOMENALLY. THE WORST PERFORMER IN THE RUSSELL 1000. WE WILL GET INTO IT.
ROMAINE: MICROSTRATEGY , OUTPERFORM RATING. SAYING IT WILL OFFER $500 BILLION IN CONVERTIBLE NOTES. THIS CAN BRING UPSIDE TO ITS CORPORATE STRATEGY SHARES, BASICALLY FLAT ON THE DAY. NEXT UP, TWILIO. THERE IS CONCERN N OVER THE CONSUMER.
THOSE SHARES DOWN 3%. BANK OF AMERICA NOT TOYING AROUND. THEY ARE NOT TAKING INTO ACCOUNT THE SUCCESS OF THE MONOPOLY GO MOBILE GAME.
THE SEGMENT IS STABLE AND ANALYSTS PREDICT IT WILL CARRY INTO '25. ONE OF THE BIGGEST DECLINERS ON THE DAY, RH, FORMERLY KNOWN AS RESTORATION HARDWARE. HEAVIER THAN EXPECTED FIRST-QUARTER LOSS. LET'S GET INSIGHTS FROM ANTHONY. THEY CUT THE PRICE TARGET
TODAY. THIS RELEASE RATTLED A LOT OF FOLKS. THEY SEEMED TO BE KNOCKING IT OUT OF THE PARK FOR YEARS. WE'VE HEARD COMMENTARY FROM THE CEO THINGS WEREN'T ROSY. LAST NIGHT THEY DROPPED THE BOMB. ANTHONY: CORRECT.
FIRST-QUARTER RESULTS WERE DISAPPOINTING. FROM A DEMAND PERSPECTIVE AND PROFITABILITY PERSPECTIVE. THEY REITERATED FULL-YEAR GUIDANCE WHILE FORECASTING SECOND-QUARTER BELOW EXPECTATIONS. IT'S A HEAD SCRATCHER. THE FIRST HALF WILL BE WORSE THAN THEY WERE EXPECTING. WHY ARE THEY REITERATING? COULD THERE BE OTHER SHOES TO DROP? ROMAINE: WE PUT FOCUS ON LOWER END CONSUMERS.
RH CATERS TO A HIGHER NET WORTH CONSUMER. ARE YOU SEEING CRACKS? IS THIS SPECIFIC TO RH? ANTHONY: IT IS SPECIFIC. HEY HIGH-END CONSUMER HAS PLENTY OF MONEY TO SPEND, GIVEN HOW STRONG THE STOCK MARKET HAS BEEN. GENERALLY THEY WILL GO TO RH BECAUSE THEY BOUGHT A SECOND, THIRD OR FOURTH HOME. RH IS LEVERED TO EXISTING HOME SALES, PARTICULARLY LECTURING -- PARTICULARLY LUXURY SALES. THAT MARKET IS IN A BAD WAY.
THIS IS NOT A CUSTOMER WHO WILL GO TO RH AND SPEND SIX FIGURES UNLESS THEY ARE MOVING OR BOUGHT THAT FOURTH HOME. ALIX: I WOULD HAVE SO MANY THROW PILLOWS. WHO ARE THE COMPETITORS? HOW DOES THE VALUATION COMPARED TO ITS PEERS? ANTHONY: ONE REASON WE LIKE THEM LONG-TERM IS THEY DON'T HAVE A LOT OF COMPETITORS. ONE THING THEY'VE DONE THE LAST SEVERAL YEARS BY INCREASING QUALITY, THE PRICE POINTS, OPENING THESE BEAUTIFUL STORES, DIFFERENTIATES THEMSELVES FROM THE COMPETITION.
ON THE MARGIN, YOU COULD SAY WILLIAMS-SONOMA, POWERHOUSE. THOSE COMPANIES ARE GENERALLY DOING BETTER BECAUSE THEY ARE NOT SO LEVERED TO THE HIGH-END CONSUMER. THEY ARE NOT SOLELY RELIANT ON FIVE FIGURE PURCHASES.
RH IS IN A CLASS OF THEIR OWN. EVEN WITH NEAR-TERM STRUGGLES, WE FEEL GOOD ABOUT THE STOCK. ALIX: HAVE THEY TROUGH ED YET? ANTHONY: I WOULD SAY IT HAD IF I WASN'T CONCERNED THEY WOULD HAVE TO LOWER GUIDANCE LATER THIS YEAR. ONE THING INVESTORS HATE WITH ANY COMPANY IS OVERPROMISE UNDER DELIVER. THEY COULD BE SETTING THEMSELVES UP FOR THAT. ALIX: APPRECIATE IT. THIS IS ME BEING THE INDICATOR. I WILL NEVER SHOP AT RH.
EVEN THE OUTLET IS EXPENSIVE. ROMAINE: IT IS A SPECIFIC CONSUMER. THE AESTHETIC. THERE'S APPEAL BUT NOT FOR EVERYBODY.
ONCE YOU GET CUSTOMERS WHO SPEND SIX FIGURES FOR A FOURTH HOME, AT SOME POINT YOU RUN OUT OF HOMES. ALIX: YOU SEE THE CYCLE. ROMAINE: HOME GOODS. ALIX: THE OUTLET STORE. INDUSTRY CITY. ROMAINE: YOU ARE A FAN. ALIX: THE OUTLET IS 60% OFF. ROMAINE: $5,000 FOR A CHAIR.
ALIX: NO. >> IT WILL TAKE TIME TO GET INFLATION BACK. MY PROJECTION ISN'T UNTIL '26 BUT WE WILL SEE PROGRESS CONTINUE IN MY MODAL VIEW AND THAT'S ENOUGH TO SAY OK TIME TO START THE PROCESS OF BRINGING RATES DOWN. ROMAINE:
THE OUTGOING CLEVELAND FED PRESIDENT SPEAKING WITH MICHAEL MCKEE. ALIX: BARCLAYS WILL SHORT THE 10 YEAR. THEY SEE ACTIVITY WILL REBOUND. THEY THINK CONSENSUS IS TRUE TO THE UPSIDE. HIGHER FOR LONGER PREVAILS. ROMAINE: THE TRADERS ARE TRYING TO FIGHT.
THE BIGGEST DROP WE'VE SEEN IN YIELDS ON A WEEKLY BASIS ALL YEAR. MAYBE THE DIRECTION WILL GO DOWN AND THEN YOU HEAR COMMENTS AND THEY ARE SAYING YOU ARE DELUSIONAL. THE YIN-YANG FOR THE LAST YEAR AND A HALF AMID THE EASING CYCLE. FINTECH. THERE WAS BANKRUPTCY A FEW MONTHS AGO.
YOU MAY NOT HAVE HEARD OF SYNAPSE. IT'S AN INTERMEDIARY BETWEEN FINTECH COMPANIES AND BANKS. WHEN THEY WENT BANKRUPT, MILLIONS OF DOLLARS WENT MISSING. IT'S A COMPLICATED ISSUE. MICHELE SPENT 20 YEARS IN THE LAW DEPARTMENT, U.S. OFFICE OF THE COMPTROLLER. WE KNOW ABOUT THESE MIDDLEMEN. A LOT OF PEOPLE FORGET A LOT OF THEM AREN'T BEHOLDEN TO THE SAME REGULATORY STANDARDS A NORMAL BANK WOULD BE.
THIS BUSINESS MODEL HAS BLOWN UP. HAVE WE GOTTEN TO THE POINT WHERE IT NEEDS TO GO AWAY OR WE NEED TO SEE GREATER REGULATION OF IT? MICHELE: THANKS FOR HAVING ME ON. I WISH WE WERE TALKING ABOUT YOUR THROW PILLOWS. IT'S A LOT SIMPLER THAN THE SUBJECT WE HAVE TODAY AND IT IS EXTREMELY SERIOUS. I WOULD LIKE TO START BY SAYING
WHAT HAPPENED HERE IS TRAGIC. PEOPLE GOT HURT. THEY CANNOT PAY MORTGAGES. COLLEGE TUITION BILLS. I'M HEARING FROM FOLKS. THE STORIES ARE HEARTBREAKING.
THAT SHOULDN'T HAVE HAPPENED. THE SYNAPSE MATTER IS ABERRATION AND SHOULD NOT RESULT IN A RUSH TO JUDGMENT ABOUT BANKING AS A SERVICE GENERALLY. ROMAINE: FOR THOSE FOLKS WEDDED TO THIS MODEL, A LOT OF THEM PREFER IT, BECAUSE IT ALLOWS TO SHIFT THE RESPONSIBILITY AROUND, IS THERE ANYTHING THAT CAN BE DONE TO OFFER MORE PRODUCTION, PROTECTION? MICHELE: REGULATORS ARE SHOWING WHAT THEY ARE DOING HERE. TODAY THE FED AND ARKANSAS BANKING REGULATOR, ONE OF THE MAIN PARTNER BANKS HERE INVOLVED, BANCORP, ISSUED AN ENFORCEMENT ACTION AGAINST EVOLVE THAT PROVIDES CLEAR INDICATION THAT REGULATORS HAVE BEEN ON THE JOB HERE AND HOW THEY APPROACH THE ISSUES. THAT THEY'VE UNCOVERED. ALIX: HELP ME. DUMB IT DOWN FOR ME WHAT WENT WRONG. I'M NOT 100% SURE WHERE THE
FAILURE WAS. WHO WAS AT FAULT? MICHELE: IF IT WOULD HELP, LET ME DESCRIBE AT A BASIC LEVEL WHAT BANKING AS A SERVICE IS AND THE BASIC MODELS. ALIX: GO FOR IT. MICHELE: BAAS IS A PARTNERSHIP BETWEEN A BANK AND A NON-BANK PARTNER TO PROVIDE FINANCIAL PRODUCTS AND SERVICES TO CUSTOMERS. THIS MODEL, THE BANK TAKES REGULATORY RESPONSIBILITY FOR THE RELATIONSHIP BUT GIVES THE PARTNER RESPONSIBILITY FOR MANAGING A LOT OF BUSINESS OPERATIONS. THE BANK OVERSEES HOW THE PARTNER DOES THIS AND CONDUCTS MONITORING TO MAKE SURE THE PARTNER IS DOING SO CONSISTENT WITH LAW, REGULATION AND POLICIES. THE BANK PROVIDES TECHNOLOGY AND CONNECTIVITY TO PAYMENT SYSTEMS LIKE ACH AND THE CARD NETWORKS.
BAAS HAS A NUMBER OF MODELS. THIS IS WHERE IT GETS CONFUSING. I SYMPATHIZE. THE TERMINOLOGY VARIES AND IT IS THE SUBJECT OF A DEBATE. IN THE WAKE OF SYNAPSE, MANY ARE FOCUSED ON THE DISTINCTION BETWEEN DIRECT AND INDIRECT BAAS MODELS. IN THE MOST BASIC VERSION OF THE DIRECT MODEL, A BANK DEVELOPS ITS OWN TECH TO CONNECT WITH PARTNERS AND HANDLES ALL ASPECTS OF THE PARTNERSHIPS INCLUDING SOURCING THE CUSTOMERS AND OVERSEEING COMPLIANCE. ALIX: AT THE END OF THE DAY, ISN'T THIS INSURED UP TO $250,000? WHAT'S THE PROBLEM? MICHELE: OK SO. [LAUGHTER] YES.
FUNDS HELD IN TRADITIONAL BANKS ARE FDIC INSURED. $250,000 PER DEPOSITOR PER INSURED BANK. HERE'S THE ISSUE. THAT INSURANCE IS ONLY AVAILABLE WHEN A BANK FAILS.
HERE SYNAPSE HAS FAILED. THE PARTNER BANKS HAVE NOT FAILED. ROMAINE: THAT BRINGS US BACK TO WHERE WE STARTED. WHAT ARE THE PROTECTIONS GOING TO BE IF AT ALL? MICHELE: LET'S LOOK AT THE EVOLVE ISSUE TODAY. TO GIVE A GUIDE FOR WHAT REGULATORS ARE DOING.
I CAN DESCRIBE HOW I THINK THE CUSTOMERS CAN GET THEIR MONEY BACK. ROMAINE: GO AHEAD. MICHELE: THE CONSENT ORDER IS SAYING EVOLVE ENGAGED IN UNSAFE BANKING PROCESSES HERE. NOW IS REQUIRING EVOLVE TO GET REGULATORS PRIOR APPROVAL BEFORE ESTABLISHING ANY NEW FINTECH PARTNERS AND OFFERING NEW PARTNERS PROGRAMS TO EXISTING PARTNERS. THEY WILL BE WATCHING THEIR BAAS PROGRAMS VERY CAREFULLY AND LIMITING THE GROWTH. THAT'S CONSISTENT WITH OTHER CONSENT ORDERS REGULATORS HAVE ISSUED IN THE SPACE. HOW WILL THEY GET THEIR MONEY BACK? IN THE BANKRUPTCY CASE, SYNAPSE HAS A BANKRUPTCY TRUSTEE, FORMER CHAIR, THE FBI SEE -- FDIC.
SHE'S PROPOSED SEVERAL POLLUTIONS INCLUDING PARTIAL PAYMENTS TO THE CUSTOMERS. HOPEFULLY THE JUDGE WILL SORT THAT OUT SOON. CONSUMERS MAY ALSO FIND RELIEF IF THE CF PB FINDS VIOLATION OF CONSUMER PROTECTION LAWS. THEY REGULATE THE NON-BANK PROVIDERS IN THIS CASE. THAT COULD PROVIDE RELIEF FROM THE VICTIMS RELIEF FUND CALLED THE CIVIL PENALTY FUND. THAT PROVIDES MONEY TO PEOPLE WHO HAVE BEEN HARMED BY COMPANIES THAT BREAK FEDERAL CONSUMER FINANCIAL PROTECTION LAWS. MOST PEOPLE IN THE SPACE HAVE
THEIR MONEY ON THAT AS THE EVENTUAL REMEDY. ROMAINE: APPRECIATE YOU COMING ON. IT'S CONFUSING FOR FOLKS. IT'S A STORY WE HAVE TO TALK TO YOU ABOUT AGAIN, HOPEFULLY UNDER MORE POSITIVE CIRCUMSTANCES. COMING UP, THE WORST-PERFORMING S&P STOCK TODAY. YOU WILL FIND THAT IN THE INDUSTRIALS SPACE. ♪ ROMAINE: SECTOR OF THE HOUR TODAY.
INDUSTRIALS THE WORST-PERFORMING OF THE 11 SECTORS ON THE BACK OF DISAPPOINTING PREANNOUNCEMENT BY MFC INDUSTRIAL. NOT A HOUSEHOLD NAME BUT THEY ARE A BIG SUPPLIER OF METALS AND STUFF. THIS RATTLED A LOT OF FOLKS. ABIGAIL:
THEY'RE NOT TALKING ABOUT IT -- THEY ARE SAYING THE CHANNEL NEEDS TO BE DESTOCKED. PRETTY BAD PREANNOUNCEMENT. FOR ADJUSTED EARNINGS, THEY WERE EXPECTING 1.50. THE BIGGER THING THAT IS INTERESTING IS THE QUESTION ON THE ECONOMY. SOME SIGNALS THE ECONOMY IS FINE AND THE FED MANUFACTURED THIS SAW PLANNING. ON THE OTHER HAND -- THE FED MANUFACTURED THIS SOFT LANDING. I'M LOOKING AT THEIR WEBSITE RIGHT NOW. THEY SELL EVERYTHING.
ALL ITEMS THAT HELP BUSINESSES RUN. IF THE BACKBONE OF THE ECONOMY IS SEEING A GLUT BECAUSE OF A LACK OF DEMAND, WHAT DOES THAT SAY ABOUT THE ECONOMY? LINCOLN ELECTRIC, PARKER HANNIFIN, PEOPLE ARE LOOKING. ALIX: THIS IS EARLY CYCLE. IT'S THE FIRST TO GET HIT WITH
DEMAND WORRIES. THAT STOCK VERSUS THE NEW ORDERS DATA, THEY ARE BOTH POINTING DOWN. THE MANUFACTURING NUMBERS HAS BEEN WHAT WE ARE SAYING, BELOW THAT GROWTH LEVEL. ABIGAIL: MIKE MCGLONE HAS BEEN SAYING THE WEAKNESS LAST YEAR WAS A SIGNAL WE WOULD SEE A RECESSION THIS YEAR. THE NARRATIVE SHIFTED. IF YOU LOOK AT COPPER, OIL, GRAINS.
HE IS SAYING THEY WILL GO LOWER AND THAT IT WILL BE DEMAND DRIVEN. THESE MIGHT BE THE EARLY SIGNS THAT NOT ALL IS WELL. I'M NOT SURE HOW TO SAY THIS. ONE RECESSION INDICATOR IS FLASHING RED. I HAVE A HARD TIME BELIEVING THAT. THERE ARE SIGNALS TO WATCH HERE. ALIX: THANKS.
FEELS LIKE WE HAVE BEEN IN THE TROUGH OF MANUFACTURING FOR A WHILE. THIS HAS BEEN QUITE A WEEK. JEREMY: THE TECHNOLOGY IS SUCKING UP THE OXYGEN. THERE IS FOMO GOING ON AMONG MANAGERS. IF THEY DON'T OWN APPLE, NVIDIA, MICROSOFT, THEY ARE GOING TO FALL BEHIND. A NARROWING MARKET IS NOT USUALLY A GREAT SIGN FOR FUTURE GAINS.
ROMAINE:ROMAINE: TALKING THE TECH RALLY. RECORD WEEK FOR U.S. EQUITIES. THE MOVES TODAY NOT NECESSARILY REFLECTIVE. ALIX: OVERALL YOU'RE UP TWO WEEKS IN A ROW. THE RUSSELL DOING OK. DOWN 1% ON THE WEEK. APPLE IS UP 8% ON THE WEEK. FIVE STRAIGHT WEEKS OF INCREASING. ROMAINE:
A FEW WEEKS AGO WE WERE TALKING ABOUT THIS BEING A LAGGARD. NOW WE ASSERTING ITSELF. SHOWING WHY IT IS APPLE. JOHN, WE TALK ABOUT THE RECORD HIGHS. IS THE MOMENTUM STILL IN FAVOR OF THE BULLS NEXT WEEK? JOHN: TUNE EXTENT. NOTHING MUCH TO COMPLAIN ABOUT. IT'S FINE.
I'M WORRIED ABOUT THE MACRO TRENDS. STRONG DOLLAR. EUROPE. THOSE MOVES HAVE ME CONCERNED. I'M TRYING TO THREAD THE NEEDLE. I'M NOT SURE ON NEXT WEEK. WE ARE GETTING CLOSE TO THE PEAK OF THE S&P FOR THE SUMMER. ROMAINE: FOR THE YEAR? JOHN: NOT YET. I'M NOT GOING TO RULE OUT A 5700 BY THE END OF THE YEAR.
WE ARE GETTING CLOSE TO ANOTHER CONSOLIDATION RANGE. ALIX: WHAT DOES THAT LOOK LIKE? JOHN: COUPLE THINGS. MY BEST GUESS IS LINING UP ALONG THE ELECTION. THE MARKET CAN GRIND BETWEEN NOW AND AUGUST AND HAVE A NICE SWOOS H. IT WILL BE LIKE MORE TOWARD THE
END OF THE YEAR WHERE YOU WANT TO BUY AGAIN. NOT PERISH BUT MORE CONSOLIDATED. ALIX: NUANCED. BANKS HAVE NOT PARTICIPATED RECENTLY. WHAT DOES YOUR BREATH INDICATOR LOOK LIKE? JOHN: IF YOU HAVE ONE HOUR, LET'S TALK ABOUT IT. ALIX:
HOW ABOUT ONE MINUTE? JOHN: EVERYONE IS TALKING ABOUT IT. IT'S A CONCERN. MUCH LIKE MONETARY POLICY, THEY ARE NOT TIMING TOOLS.
THEY EXPLAIN THE CONDITION. BETWEEN 1998 AND 2000, IT WAS AWFUL BUT THE S&P WENT UP 70%. WHAT BREADTH SHOULD BE TELLING YOU IS HOW YOU ARE POSITIONED. MOMENTUM WINNERS ARE DRIVING THE INDEX HIGHER. ALIX: WHAT ABOUT SEMIS? JOHN: THIS IS WHERE THINGS GET DICEY. IT'S PART OF MY CAUTION THIS
SUMMER. SEMIS LONGER-TERM LOOK GREAT. I HAVE A CHART GOING BACK TO 1969. 2020 WAS A 20 YEAR BREAK OUT. FOR ANY SECURITY, THAT'S MEANINGFUL. ACCORDING TO THAT INTERPRETATION, THERE IS 80%
UPSIDE ON SEMIS. LONGER-TERM. OVER THE NEXT COUPLE YEARS. SHORTER-TERM, OVERBOUGHT, HECK YES. THE 50 MONTH MOVING AVERAGES 130% ABOVE THAT. IN THE 1990'S WHEN THEY GOT TO THAT THRESHOLD, THEY WERE AT RISK FOR A 20% PULLBACK. THAT LASTED SIX MONTHS. IT WAS SUPPORTED BY THE 50 MONTH MOVING AVERAGE.
AS LONG AS THAT AVERAGE HOLDS, WE WILL BE ACCUMULATING GOING FORWARD FOR THE NEXT COUPLE YEARS. ROMAINE: WE HAD BIG MOVES IN THE TREASURY SPACE. THE BIGGEST MOVE OVERALL. THERE'S BEEN TALK ABOUT
DIRECTIONALITY AND THE ENTRY POINTS. THE 10 YEAR YIELD SITTING AT 4.2%. DO YOU SEE A TRADABLE OPPORTUNITY? JOHN: WITH THE 10 YEAR, YOU HAVE TO BE LONG TREASURES. THAT'S NOW ENOUGH TO BE AT THAT
POINT. NEXT SUPPORT, SOMEWHERE CLOSER TO 4%. WHAT I'VE BEEN TRYING TO DO IS THREAD THE NEEDLE TO 3.25% ON THE 10 YEAR. WE ARE TRYING TO THREAD THE NEEDLE TO THE LOWER LOW.
NEAR TERM YOU CAN START BUYING TREASURIES. FOR THE TWO-YEAR, SUPPORT IS AROUND EIGHT 4.60. . NOT AS CLEAN. ROMAINE: A QUESTION ON CORRELATIONS.
WHEN YOU LOOK AT TECHNICAL MOVES, THE TRADITIONAL CORRELATIONS, SOME HAVE BROKEN DOWN. THEY'RE NOT AS STRONG AS THEY USED TO BE. WHEN DOES THAT BECOME MORE OF A FACTOR WHEN YOU ARE LOOKING AT WHAT IS GOING ON? JOHN: CORRELATIONS, AND CORRELATIONS GO. THEY ARE NOT STATIC.
I AM NOTICING CHANGES. ONE IS THIS WEEK WE SAW A BREAKDOWN IN BREAKEVENS ON CPI. LOW BETA STOCKS ARE OUTPERFORMING.
THAT IS A SIGN GROWTH IS A CONCERN IN THE MARKETPLACE. THE DOLLAR STICKY STRONG. OK BUT THE TECHNICAL GOLDILOCKS IS NOT THERE.
CREDIT SPREADS ARE STARTING TO WIDEN. FINANCIAL CONDITIONS ARE STARTING TO TIGHTEN. THAT GOES BACK TO MY CAUTIOUS STANCE FOR THE SUMMER. HOW DO YOU BREAK THESE
CONVERGENCES LIKE IN 2000? IT'S FROM GROWTH DETERIORATING. ROMAINE: CUTS A LEAVE IT. GREAT TO TALK. TWO MINUTES TO GO. YOU ARE IN THE MIDST OF THE
MOST IMPORTANT HOUR OF THE TRADING DAY. THIS IS BLOOMBERG. ♪ . ROMAINE: AND RIGHT NOW WE ARE TWO MINUTES AWAY FROM THE END OF THE TRADING DAY. ROMAINE BOSTICK AND ALIX STEELE TAKING YOU THROUGH THE DAY. CAROL MASSAR AND TIM STENOVEC IN THE RADIO BOOTH AS WE WELCOME OUR AUDIENCES ACROSS ALL OF OUR BLOOMBERG PLATFORMS. CAROL MASSAR HERE ON A SOMEWHAT SLEEPY AFTERNOON. CAROL: WE’VE HAD QUITE THE WEEK, MEH? IT’S A THING. RECORD RUNS ON THE EQUITY SIDE
UP TO TODAY. MAYBE ON THE NASCAR WE MIGHT SEE IT AGAIN BUT ALSO RATES COMING DOWN. CONSUMER WEAKNESS AND SENTIMENT TODAY PUSHING PRESSURE EVEN LOWER. WE NEED A BREATHER. TIM: GEOPOLITICAL CONCERNS IN EUROPE WITH THOSE PARLIAMENTARY ELECTIONS BUT STILL TODAY’S MARKET IS KIND OF MUTED. CAROL: THE S&P 500 IS STILL WORKING ON
A RECORD HIGH. I’M KIND OF IMPRESSED. YOU STILL HAVE EVERYTHING VALUED WHERE IT WAS WHEN EVERYONE WAS EXCITED. ALIX: THE SCRAP 40 ERASED GAINS FOR THE YEAR. IT GOT HIT PRETTY HARD.
THIS WEEK, THE BUYING INTO THE TREASURY CURVE, RIGHT? THAT’S YOUR SAFE HAVEN. ROMAINE: STRENGTH IN THE DOLLAR. EQUITIES TAKING A LITTLE BIT OF A BREATHER AFTER HITTING RECORD HIGHS, AT LEAST WITH THE S&P AND NASDAQ FOR THE FIRST FOUR TRADING DAYS OF THE WEEK. RIGHT NOW THE S&P 500 IS DOWN ABOUT ONE POINT. IT TAKES A LITTLE WHILE FOR
THESE NUMBERS TO SETTLE BUT THAT WOULD BASICALLY MAKE IT UNCHANGED ON THE DAY. THE DOW JONES WILL DEFINITELY CLOSE LOWER ON THE DAY, DOWN ABOUT .1% ON THE DAY. A NICE BID ON SOME TECH STOCKS, UP . 1%. THE BIG LAGGARDS WITH YOU IN THE INDUSTRIAL AND SICKICALLY CAL SPACE. CAROL: LIKE I SAID, MEH ON THE EQUITY
SIDE OF THINGS. ON THE S&P 500, MOST OF THE NAMES LOWER ON TODAY’S SESSION. 101 GAINING SOME GROUND. ALIX: THE INDUSTRIALS ARE THE LEADING LAGGARDS ON THE S&P 500. DOWN MORE THAN 1%. THE COMMODITIES ALSO ON THE WEAK SIDE. THE GREEN SLICES OF THAT PIE,
COMMUNICATION SERVICES, TECH, AND CONSUMER STAPLES, ALTHOUGH CONSUMER STAPLES BASICALLY UNCHANGED. AND WE’RE REALLY TALKING ABOUT TECH AND COMMUNICATION SERVICES. CAROL: REALLY RANDOM BUT I WOULD LOVE A SLICE OF PIE RIGHT NOW. ADOBE AN OUTPERFORMER TODAY. NUMBER ONE GAINER IN THE S&P 500 AND THE NASDAQ 100. JUST BELOW A 15% GAIN IN TODAY’S SESSION. THE COMPANY, WE WERE BREAKING IT DOWN LAST NIGHT.
STRONG FUTURE SALES. SUGGESTING THE COMPANY IS USING THE NEW A.I. BASED TOOLS. SO NETFLIX, AN OUTPERFORMER. UP ABOUT 2.5% TODAY. HIGHEST SINCE NOVEMBER OF 221. IT IS UP ABOUT 40% YEAR TO DATE, KEEPING CAPITAL MARKETS REPORTS SAYING THEY SHOWED INCREASING USAGE OF THE NET FLICKS SERVICE BY CUSTOMERS. A SLIGHT TWEAKING. STOCK CLOSING AT ABOUT 669 AND CHANGE TODAY. ROMAINE: ANYTIME WE LOG INTO NETFLIX AND PAY A HIGHER TIER WE DO NOT GET THE ADS BUT ERG WE GO LOWER, THEY POP IN WITH ADS. ALIX:
THAT’S INTERESTING. CAROL: THEY WANT TO SHOW GROWTH IN THAT CATEGORY. GREAT QUESTION. ROMAINE: HAS SHE STARTED DRINKING EARLY, TIM? TIM: I DON’T KNOW WHAT’S GOING ON. CAROL: HASBRO, NUMBER TWO ON THE S&P 500. RECOMMENDATION OF THE TOY COMPANY TO BUY FROM NEUTRAL. SO CERTAINLY AN OUTPERFORMER. OVER TO TIM. TIM: ANY MORE GAINERS? CAROL:
NO, I’M DONE. TIM: DOWN ANY .8%. THERE WAS A BIT OF NEWS FROM THE EUROPEAN COMMISSION -- FINANCIAL TIMES, THAT APPLE STIVES COMPETITION ON ITS MOBILE APP STORE SAID THREE PEOPLE WITH CLOSE KNOWLEDGE TO THE INVESTIGATION. THE THING ABOUT APPLE, MOVES THAT POSTED THAT ARTICLE WERE NOT BIG. THE BIGGER MOVE WITH APPLE IS WHAT HAPPENED THIS WEEK. SHARES UP ABOUT 8% SO FAR THIS WEEK AFTER THE WWC CONFERENCE ON MONDAY WHERE APPLE UNVEILED THE NEW A.I. FEATURE FOR THE ITS NEW
OPERATING SYSTEM. SHARES UP CLOSE TO 30% FROM APRIL. QUITE A BIG REBOUND IN A VERY SHORT PERIOD OF TIME. R.H., FORMERLY KNOWN AS RESTORATION HARDWARE HAVING ITS WORST DAY SINCE 2020. SHARES PLUNGED AFTER ESTIMATES ANSWER DOWN.
THE GUIDANCE FOR ITS ADJUSTED OPERATING MARGIN ALSO CAME IN QUITE A BIT BELOW ESTIMATES. AND IN THE CRUISE OPERATORS, IN THE S&P 500. NORWEGIAN AND CARNIVAL CRUISE WERE AT THE BOTTOM. ROMAINE: WHAT HAPPENED THERE? TIM: INTERESTING, A NOTE OUT FROM BANK OF AMERICA TODAY THAT SHOWED RECENT DATA SHOWED MODESTLY SOFTER PRICING. CRUISE PRICES IN EARLY JUNE WERE MODEL MODESTLY SOFTER THAN EARLY MAY. WHY WE SAW A SELLOFF. TRUIST SAID THAT POTENTIAL RESTRICTIONS ON ISLANDS IN GREECE COULD HAVE BEEN AN ISSUE.
BUT THIS WAS SURPRISING TO ME THAT THAT WOULD PROMPT A SELLOFF BY IN. ALIX: YOU KNOW WHAT OUTIN ORDER ALASKAN CRUISE. CAROL: THAT’S AN OLDER CO-AUTHORITY, RIGHT? ONES THAT CAN AFFORD TO CRUISE TO ALASKA. RIGHT? ALIX: YIELDS WERE DOWN ABOUT 22 BASIS POINTS ON THE WEEK.
THAT’S A PRETTY CHUNKY MOVE ON THE 10-YEAR. CAROL: PRETTY IMPRESSIVE. LET’S GET TO SOMETHING THAT’S REALLY IMPORTANT. I’M NOT SURE IF IT WAS DISCUSSED AT THE FED MEETING, PROBABLY NOT. BUT SHORTS AT THE OFFICE, YES? SHOW OF HANDS. ALIX: LIKE WEARING SHORTS AT THE OFFICE? CAROL: GO ANYWHERE YOU WANT. SHORTS, YES OR NO? ROMAINE:
WHAT STOCK ARE WE HALF COURT SHORTING? [LAUGHTER] CAROL: NO, BERMUDA, CARGO, THOSE KIND OF SHORTS. APPARENTLY IF YOU’RE ON THE WEST COAST IT’S KIND OF NORMAL BUT HERE IN THE NORTHEAST -- ALIX: THEY ALSO WEAR HOODIES. [LAUGHTER] ROMAINE: I DON’T WANT TO PUT TIM ON BLAST BUT EVERY DAY I SEE TIM WALKING AROUND IN HIS SHORTS. ALIX: TO BE FAIR, HE CHANGES. HE BIKES IN AND HE CHANGES.
I GOT YOU, TIM. TIM: MOST OF THE -- ONE OF THE MOST READ STORIES IS ON CARMICHAEL TODAY. THE WRITER TALKS ABOUT THE CHANGING IDEA OF WHAT’S ACCEPTABLE AND 234089 ACCEPTABLE AT THE OFFICE AND SOME PEOPLE SAYING SHORTS ARE OK. ROMAINE: NO, IF YOU WORK IN A GYM, YEAH. ALIX: OR IF YOU WORK AT HOME, RIGHT? AND THAT’S WHAT WE SAW THROUGHOUT THE PANDEMIC. THERE’S ANOTHER GREAT STORY THIS WEEK THAT WELLS FARGO -- THIS PARENT DIDN’T GREAT BUT THEY FIRED MORE THAN A DOZEN PEOPLE LAST WEEK AFTER THEY WERE FAKING WORK. SIMULATIONS OF KEYBOARD
ACTIVITY. IN THE SIMPSONS IN SEASON SEVEN, THERE WAS AN EPISODE WHERE HOMER BEGINS A TON OF WEIGHT SO HE CAN REACH WORK AT HOME STATUS AND USES A ROBOTIC THING TO TAP THE KEYBOARD AND HE ALSO USED THE END OF A BROOMSTICK WHILE WATCHING TELEVISION. HE WAS WEARING A MEW MEW WHILE WATCHING TV. ALIX:
SCARLET HASN’T WORKED ON THIS IN LIKE 20 WEEKS. I WAS JOKING WITH HER BEFORE THE SHOW, YOU SPENT ALL DAY ON THIS, DIDN’T YOU? ROMAINE: GREAT VIDEO THERE. WHAT I LOVE IS HOW MUCH MORE SOPHISTICATED IT’S GOTTEN.
IT’S MORE SOPHISTICATEDDED SO YOU CAN LOCK INTO YOUR ZOOM OR MICROSOFT TEAMS OR WHATEVER AND IT MAKES YOU LOOK LIKE YOU’RE STARING AT THE SCREEN WORKING AWAY. CAROL: NO SHORTS AND NO FOULS THIS MOVERS. THAT’S THE BOTTOM LINE. GUYS, HAVE A GREAT AND SAFE WEEKEND. ENJOY. THAT WILL DO IT FOR OUR CROSS PLATFORM COVERAGE.
IT IS "THE CLOSING BELL." WE’LL SEE YOU ALL ON MONDAY. ROMAINE: STICK WITH US HERE ON BLOOMBERG TELEVISION. A LOT MORE COVERAGE COMING UP, INCLUDING A CLOSER LOOK AT THE WORLD OF SOCCER. THE WORLD CUP IS GOING TO LAND IN NORTH AMERICA AND WE’RE GOING TO TALK WITH ONE OF THE PEOPLE RESPONSIBLE FOR BRINGING IT HERE. DAN HUNT, PRESIDENT FC DALLAS.
SCARLET: WELCOME BACK TO "THE CLOSE." I’M SCARLET FU. ROMAINE: AND I’M ROMAINE BOSTICK. THE S&P CLOSING FLAT ON THE DAY. THE NASDAQ SLIGHTLY HIGHER BUT IT WAS A RECORD RUN FOR THE S&P AND NASDAQ ALL WEEK LONG.
THE OUT PERFORMANCE OF TECH RELATIVE TO THE BROADER MARKET, THE BIGGEST OUTPERFORMANCE WE’VE HAD GOING BACK TO 2002 AND THAT COULD BE A PROBLEM. ON THE THIRD LINE OF THE SCREEN. DOW TRANSPORTS DOWN A PERCENT. THE RUSSELL 2,000 DOWN ALMOST 2%. IT LOOKS LIKE SOME OF THE INDUSTRIAL COMPANIES ARE GETTING LEFT BEHIND. SCARLET:
MSM LOSING .1 OF IT MARKET VALUE TODAY. DISAPPOINTING THIRD QUARTER RESULTS AND CUT ITS MARGIN FORECAST. THE C.E.O. BLAMED SOFTNESS IN HEAVY MANUFACTURING. NOT A GREAT SIGN FOR THE OVERALL ECONOMY.
ON THE FLIP SIDE, TECH WAS DOING BETTER AND ADOBE IS A GOOD EXAMPLE OF WHY. AFTER PROJECTING STRONG FUTURE SALES FOR ITS CREATIVE PRODUCTS, A REAL SIGN HERE THAT CUSTOMERS ARE ADOPTING ITS A. LIMIT-SPECIFIC TOOLS. OUR TOP STORY THIS HOUR IS THE RHYTHM STATUS OF DEMOCRACY AND MARKETS. WHAT IS IT? IT’S COMPLICATED.
ELECTIONS DON’T USUALLY MATTER ALL THAT MUCH TO THE DAY-TO-DAY MOVES IN ASSET PRICES UNTIL THEY DO AND WE’VE SEEN THAT PLAY OUT IN EMERGING MARKETS THIS MONTH, PARTICULARLY IN MEXICO AND INDIA. TO A LARGE EXTENT THE OUTSIDE REACTION MAY BE DO TO OUTSIDE GAINS THAT LEAD UP TO THE ELECTION BUT DO LEAVE INVESTORS WONDERING WHAT NOW? ROMAINE: LET’S POSE THAT QUESTION TO OUR FIRST GUEST, THE FOUND IRAND C.E.O. OF ROCK CREEK AND SPENT QUITE A BIT OF TIME AS C.E.O. OVER AT THE WORLD BANK. WHEN YOU LOOK AT SOME OF THE RESULTS WE’RE GOTTEN OVER THE LAST COUPLE OF WEEKS, WHICH WAS A SURPRISE TO A LOT OF FOLKS.
DOES IT GIVE YOU A SENSE HERE THAT MAYBE INVESTORS NEED TO PREPARE THEMSELVES FOR MEANINGFUL CHANGES IN GLOBAL POLICIES? >> YOU’RE SO RIGHT, AND WE HAVE SO MANY ELECTION STILL COMING THIS YEAR. OF COURSE, THE BIGGEST ONE BEING IN THE U.S. AS WE SAW LAST WEEK WITH PRIME MINISTER MODI’S BIG SURPRISING, WE SAW THE MARKETS REACT TO IT. WE SAW IT COME BACK IN INDIA BUT BIG MOVES, AS YOU SAID, WERE IN MEXICO AND IN SOUTH AFRICA WHERE THE CURRENCY GOT A HIT, THE MARKETS ALL GOT A HIT AND I THINK THAT’S PART OF A BROADER THEME OF UNCERTAINTY IN EMERGING MARKETS THAT IS IMPACTING EMERGING MARKET PERFORMANCE ACROSS THE BOARD, WITH SOME EXCEPTIONS, OF COURSE. AND LAST BUT NOT LEAST, THIS WEEK’S ELECTION IN EUROPE CERTAINLY HAD A HOUSTON IMPACT SO IT’S NOT JUST IN EMERGING MARKETS THAT WE’RE SEEING THE IMPACT OF ELECTION BUT IN FRANCE AND THE EUROPEAN ELECTION WE SAW A HUGE IMPACT THAT IS CONTINUING THROUGH THE END OF THIS WEEK. ROMAINE:
SOME OF THE POLITICAL ISSUES DROVE SOME OF THE TRADE WE SAW THIS EFFORT M. AS WELL AS THE MARKETS AS WELL OVER THE LAST COUPLE OF WEEKS. THE GLOBAL RATE PICTURE AT FACTORED IN. A COUPLE OF BIG MEETINGS FROM THE FED LAST WEEK AND IS THE E.C.B. THIS WEEK. HOW DOES THAT FIGURE INTO THINGS? >> AS WE LOOK AT THE EMERGING MARKETS, OBVIOUSLY WITH THE FED SPEAKING THIS WEEK, IT HAS CONTINUED TO STRENGTHEN THE U.S. DOLLAR VERSUS MOST CURRENCIES IN EMERGING MARKETS, WITH SOME FEW EXCEPTIONS AND A LOT OF PEOPLE WHO HAD HEDGES THE OTHER WAY AROUND HAVE STARTED TAKING THEM OFF BUT THE BIGGEST ISSUE IN TERMS OF EMERGING MARKETS, THERE CONTINUES TO BE A BIG OUTFLOW OUT OF EMERGING MARKETS AND T IT IS THE BIG BENEFICIARY.
INFLATION NUMBERS BEING WHERE THEY ARE TODAY IN THE U.S., OTHER ISSUES, WHICH IS A.I. AND THE THINGS FAR IMPACTING U.S. COMPANIES WITH ALSO POLITICAL
RISK IN EMERGING MARKETS. WHAT WE’RE SEEING IS THAT NONE OF THESE THINGS ARE HELPING E.M. AS A CATEGORY AND ASSET CLASS. SO THERE ARE FLOWS NOT JUST OUT OF EQUITY MARKETS BUT OUT OF BROAD MARKETS THIS EFFORT M. THE INTERESTING THING IS THERE’S A LOT OF DISPERSIAN. INDIA DESPITE THE ELECTION
RESULTS STILL CONTINUES TO BE UP 4% OR 5% FOR THE YEAR AND CONTINUES TO BE UP FOR THREE YEARS, FIVE YEARS SO INDIA SEEMS TO BE AN OUTLIER LONG TERM AND OF COURSE TAIWAN. SCARLET: INDIA HAS THE NUMBER ONE BENEFIT OF IT’S NOT CHINA AS WELL. THE DECISION IN FRANCE TO CALL A SANTA ANA ELECTION MAKES THE MARKET IN SNAP BONDS AND BONDS KIND OF FAMILIAR IN EMERGING MARKETS. HOW ARE YOU THINKING ABOUT THE
IMPACT FOR FINANCIAL OR ENERGY POLICY IN EUROPE? >> SO IN EUROPE, AS YOU MENTIONED, WITH THE SNAP ELECTION THAT PRESIDENT MACRON JUST ANNOUNCED, THERE IS MORE FEAR OF WHAT’S GOING TO HEAL BEYOND THE ELECTION RESULTS WE SAW, WHICH MOVED THINGS TO THE RIGHT AND I THINK WHAT IS HAPPENING IS CAPITAL THAT HAD STARTED MOVING A LITTLE BIT INTO EUROPE AS A DIVERSITY FIRE LAST YEAR IS SORT OF HOLDING BACK. OBVIOUSLY THE INTEREST RATES HAVE BEEN GOING DOWN EARLIER IN EUROPE VERSUS THE U.S. WILL HELP THEIR EXPORTS A LITTLE BIT MORE BUT SO FAR THAT HASN’T BEEN ENOUGH AND AS YOU SAID, I THINK THE BIGGER POLITICAL PICTURE IN EUROPE REMAINS RELATIVELY MURKY. WE SAW, FOR EXAMPLE, TODAY GERMANY STARTING TO NEIGHBOR MOVE AWAY FROM SOME OF THE CONVERSATIONS EARLIER ABOUT CHINESE E.V. CARS AND IT REMAINS TO BE SEEN
BECAUSE THAT IS SUCH A BIG PART OF EUROPEAN EX PORTS AND HAVING CLEAN ENERGY IN EUROPE HAS BEEN SUCH AN IMPORTANT PART OF THEIR POLICIES AND THEY REALLY HAVEN’T BEEN THAT GREAT SINCE COVID. SCARLET ALONE GREAT POINTS. GOLD PRICE OF PRICES UP TODAY 1.25%. HOW DO YOU THINK ABOUT A SAFE HAVEN IN A 2024 ELECTION YEAR? >> IT’S INTERESTING BECAUSE GOLD PRICES OBVIOUSLY HAVE BEEN UP FOR A NUMBER OF REASONS, INCLUDING CENTRAL BANKS AND EMERGING MARKETS HOLDING ON TO MORE GOLD WITH WHAT HAPPENED IN RUSSIA AND THE CHINESE ARE NERVOUS ABOUT THEIR OWN RESERVES. THERE’S A LOT OF REASONS FOR
GOLD GETTING IMPACTED. I DON’T MEAN IN JUST THE LAST WEEK BUT LONGER TERM. WHAT IS INTERESTING, I THINK, IS REALLY THE BIG THINGS STILL REMAIN TO BE WHAT PEOPLE ARE SAYING. YOU SAID IS THE SAFE PLACE RELATIVELY SPEAKING. OBVIOUSLY AS WE GET CLOSER TO
OURLOUISIANA TECH, THERE WILL BE AN IMPACT. AND BECAUSE OF A.I. AND THE IMPACT ON MARKETS AND CHANGING THINGS ABOUT MARKETS AND LAST BUT NOT LEAST, YOU MENTIONED ENERGY A SECOND AGO. OBVIOUSLY A.I.
HAS A HUGE ENERGY IMPACT AND WHAT WE SAW TODAY WHERE CONSTELLATION ENERGY BEING UP, A LARGE PART OF THAT BEING THE FACT THAT IT’S NUCLEAR ENERGY AS A DIVERSITY POWER GAIN IN ENERGY. SCARLET: THANK YOU SO MUCH FOR JOINING US TODAY. STILL TO COME ON "THE CLOSE" FROM SHARK TANK TO SUCCESS, THE PRESIDENT AND C.E.O. OF TRANSPORTATION FACTORY ABOUT ONE OF THE HOTTEST PRODUCTS FOR HEALTH AND FITNESS. ROMAINE: TIME FOR OUR NEXT-UP SEGMENT WHERE WE HIGHLIGHT THE ENTREPRENEURS AND FOUNDERS MOVING THE NEEDLE FOR OUR ECONOMY, THE MARKETS AND TECHNOLOGY. OUR NEXT GUEST IS MARKETING HIS
PRODUCT AS A MUST HAVE FOR FOLKS SEEKING A HEALTHIER LIFESTYLE. JOINING US IS ALEXIOU GIBSON, THE C.E.O. AND PRESIDENT OF TRANSFORMATION FACTORY. HOW ABOUT THE WORDS C-BOSS? WE SHOULD POINT OUT, FOR A CERTAIN PART OF AMERICAN CULTURE, C-MOSS -- SEA MOSS HAS BEEN A POPULAR THING. IT GAINED POPULARITY DURING THE PANDEMIC.
EXPLAIN TO THE VIEWERS WHAT IT IS. >> IT’S A SUPER MARINE ALGAE THAT GROWS IN THE OCEAN. IT’S A PLANT AND IT CARRIES OVER 0-PLUS MINERALS FOR THE HUMAN BODY. POTASSIUM, ZINC, VITAMIN K, A,
ALL THESE DIFFERENT THINGS AND WE’VE PRODUCED A PRODUCT WHERE YOU JUST TAKE TWO TAPELE RESPONSE OF A CONCENTRATED GEL A DAY TO GET ALL OF THE VITAL NEWT REBELS THAT YOUR BODY NEEDS. DURING THE PANDEMIC, COVID WAS A RESPIRATORY ISSUE, MAKING IT HARD TO EAT, BREATHE, ALL THESE THINGS AND SEA MOSS GREATLY INCREASES THE IMMUNITY OF THE BODY. ROMAINE: A LOT OF PEOPLE KNOW YOUR NAME ASK FACE FROM THE TV SHOW "SHARK TANK." YOU WERE ABLE TO WIN AN INVESTMENT DURING THAT WITH MARK CUBAN AS WELL AS THE COMEDIAN KEVIN HART. >> YES, WE HAD FOUR SHARKS OFFER US A DEAL AND I DECIDED TO GO WITH MARK CUBAN AND KEVIN HART. ROMAINE: GOOD DECISION. >> BUT I WENT FROM WANTING MARK FROM THE BEGINNING.
BUT TECHNICALLY, ALSO INVEST IN TECHNOLOGY COMPANY SO I KNEW A SUPPLEMENT BRAND WOULD HAVE BEEN A STRETCH BUT HE CAME BACK AT THE END OF THE SHOW AND NONED KEVIN HART AND SAID LET’S DO THIS TOGETHER. AND THERE WAS NO WAY I COULD SAY NO TO THAT. SCAR LET: IT’S AVAILABLE IN GUMMY FORM AND NOW IN DRINK FORM. WHY IN DRINK FORM?
WHAT DID YOU SEE FROM YOUR CUSTOMERS OUT THERE. >> WE DON’T HAVE A DRINK YET BUT WE ARE PLANNING ON LAUNCHING AS WELL AS A SKIN CARE LINE BECAUSE IT’S SO GOOD FOR YOUR SKIN BUT IT’S JUST MORE CONVENIENT. YOU’RE RUSHING OUT OF THE HOUSE, GOING TO THE GYM. GRAB A DRINK OR GRAB A COUPLE OF GUMMIES.
THEY TASTE LIKE GUMMIES FROM THE MOVIIES. REALLY DELICIOUS. WE TOOK SOMETHING THAT’S TYPICALLY FISHY AND SALTY AND MADE IT INTO THE BAHAMA MAMA SEA MOSS. WHERE THE BABIES ARE EITHERRING IT LIKE IT’S BABY FOOD AND PARENTS ARE SAYING, HEY, JUST ONE TAPELE SPOON, IT’S A SUPPLEMENT. WE TRY TO MAKE IT ENJOYABLE AND DELICIOUS TO TASTE BECAUSE THE HISTORY OF IT, IT COMES FROM THE OCEAN, WHO WANTS TO EITHER SOMETHING FISHY? SCARLET: YOU’RE A DIRECTOR-CONSUMER RIGHT NOW. PEOPLE HAVE TO ORDER IT ON THE INTERNET. THEY’VE DON’T GET A CHANCE TO SAMPLE’9".
ANY PLANS TO OFFER IT THROUGH A BRICK AND MORTAR SOURCE? >> ABSOLUTELY. WE’RE PLANNING ON A 20,000 SQUARE FOOT FACILITY AND WE’LL BE ABLE TO MASS PRODUCE OUR PRODUCTS. OF PRODUCTS. WE HAVE GERMANY MADE MACHINERY TO HELP US. RIGHT NOW WE’RE MAKING ABOUT 5,000 IS JARS A DAY. WE’VE GOTTEN CALLS FROM TARGET, G.N.C. QVC A AND WE RECENTLY GOT NOMINATED AS ONE OF OPRAH’S FAVORITE THINGS. SO WE CAN GET INTO THE WHOLE
FOODS AND BIG BRICK AND MORTAR STORES. ROMAINE: I HAVE TO ASK A COMPETITION. IT SEEMED LIKE A FEW YEARS AGO THEY WAS A RELATIVELY SCARCE PRODUCT.
AND NOW I-SEE IT ON THE SHELVES NOW. NOT NECESSARILY JUST YOUR BRAND. BUT THERE ARE OVERS TRYING TO DO THIS. HOW ARE YOU GOING TO NAVIGATE THAT? >> WE HAVE A PERSONAL RELATIONSHIP WITH OUR CUSTOMERS AND WE’RE CALLED TRANSFORMATION FACTORY BECAUSE OF MY TRANSFORMATION. I USED TO BE OVER 0 OF 540
POUNDS AND I’VE LOST OVER 200 POUNDS. YOU’RE NOT JUST BUYING THE PRODUCT. YOU’RE GUY BUYING INTO A COMMUNITY WHERE WE’RE GOING TO HELP YOU, GUIDE YOU AND WE’RE GOING TO EX POUND ON THAT, HAVING WORKOUTS AND MEAL PREPS AND ALL THESE THINGS TO HELP PEOPLE TRANSFORM INTO THE BEST VERSIONS OF THEMSELVES. ANYONE CAN MAKE SEA MOSS BUT WE’RE BRINGING A COMMUNITY AND A TRANSFORMATION ASPECT TO IT THAT WILL MAKE IT MORE PERSONAL. ROMAINE: THIS WAS A FASCINATING CONVERSATION.
THIS IS ALEXIOU GIBSON. TRYING TO BRING SEA MOSS TO THE MASSES. WHEN WE RETURN, WE’RE GOING TO TALK ABOUT THE NBA FINALS. THE BIG GAME LATER TONIGHT. ROMAINE: IT IS THAT TIME WHERE I GET TO INDULGE MY NOSTALGIA. JUNE 14, 1998. THE CHICAGO BULLS WON THEIR THIRD STRAIGHT PROFESSIONAL BASKETBALL TITLE AND THEIR SIX CHAMPIONSHIP IN EIGHT SEASONS.
IT WAS PUNCTUATE OF MICHAEL JORDAN'S ICONIC GAME-WINNING BASKET. FIRE RUSSELL SLIPPING ON THE FLOOR. THE BASKETBALL SWISHING THROUGH THE NET. WRIST STILL COCKED IN THE AIR, WATCHING THE BULLS TAKE A 1.3 WITH FIVE SECONDS LEFT IN REGULATION.
ESPN RANK THAT IS ONE OF THE 50TH GREATEST SPORTS CLIPS OF ALL TIME. NBC'S ARE RECORD PEOPLE VIEWERSHIP WITH 36 MILLION PEOPLE IN THE U.S. TUNING AND. IT IS STILL NOW THE MOST-WATCHED GAME IN THE HISTORY OF THE NBA. TO PUT THOSE 36 MILLION VIEWERS INTO PERSPECTIVE, ABC AND ESPN SAID THIS YEAR'S NBA FINALS BETWEEN THE BOSTON CELTICS AND DALLAS MAVERICKS IS JOINED ABOUT 11 MILLION VIEWERS ON AVERAGE. GAME SIX BACK IN 1998 WHEN INTO BEING EVEN MORE SIGNIFICANT THAN JUST RATINGS. IT WOULD PROVE TO BE THE LAST SHOT TOWARD WHATEVER TAKEN A BULLS UNIFORM.
NEWS OF HIS RETIREMENT SPENCE RIPPLES THROUGH THE SPORTS WORLD AND CORPORATE AMERICA. A STUDY ESTIMATED THAT JORDAN ALONE WAS WORTH 0 BILLION TO THE NBA SINCE HE WAS DRAFTED BACK IN 1984. HIS GAME 6 PERFORMANCE WITH MARKET PEAK FOR THE MBA. RATINGS FELL OVER THE YEARS, AND REVENUE PLATEAUED AND PRICES OF SOME OF THE COMPANIES HE ENDORSED PLUNGED IN THE DAYS LEADING UP TO AND MEDIALLY AFTER HIS RETIREMENT ANNOUNCEMENT.
THAT INCLUDED NIKE, NCI WORLDCOM, SARA LEE AND GATORADE AND QUAKER OATS. IT WAS A LESSON IN THE DOUBLE-EDGED SWORD THAT BUILDING A BRAND AND A FAN BASE AND A LEAGUE AROUND A SINGULAR ICONIC FIGURE, A FIGURE HIS PRESENCE AND SUCCESS CAN LIFT ALL BOATS BUT HIS DEPARTURE COULD HAVE THE OPPOSITE EFFECT AS WELL. SCARLET: THAT A PERFECTLY SIMPLE OF KEY MAN RISK FOR THE NBA WHEN ALL WAS RESTING ON MICHAEL JORDAN'S LAURELS. ALL EYES ARE FOCUSED ON SOCCER THIS MONTH.
THE EUROPEAN CHAMPIONSHIP KICKED OFF TODAY AT MS BETWEEN GERMANY AND SCOTLAND. AMERICAN SOCCER TEAMS ARE HOPING THE EXCITEMENT WILL TRANSLATE TO THIS PART OF THE WORLD, LEADING TO NORTH AMERICA POSTING THE WORLD CUP IN 2026. JOINING FROM TEXAS IS DAN HUNT, PRESIDENT OF FC DALLAS AND THE FIFA WORLD CUP 2026 EFFORTS. GOOD TO SPEAK WITH YOU. DAN: NICE TO SEE YOU GUYS AGAIN. SCARLET: YOU AND YOUR BROTHER PLAYED BIG ROLES IN BRINGING THE WORLD CUP TO NORTH AMERICA FOR THE 2026 WORLD CUP.
CLARK SAID THE 1994 WORLD CUP, THE LAST TIME HE WAS HOSTED WAS THE MOST SUCCESSFUL WORLD CUP EVER FINANCIALLY. I'M CURIOUS TO HEAR WHAT LEARNINGS YOU ARE TAKING FROM 30 YEARS AGO YOU CAN APPLY AND IMPROVE UPON IN 2026. DAN: THIS IS THE BEST SPORTS MARKET IN THE ENTIRE WORLD.
WE ARE SO INNOVATIVE THE WAY WE SELL TICKETS, SELL SPONSORSHIPS, MEDIA RIGHTS. THE 1994 WORLD CUP WAS THE MOST FINANCIALLY SUCCESSFUL OF ALL TIME. THAT WAS WITH A MUCH SMALLER TOURNAMENT. NOW WE HAVE 48 TEAMS. 104 MATCHES. 78 MILLION TICKETS IN THE ECOSYSTEM. I CAN IMAGINE -- SEVEN TO EIGH T MILLION TICKETS.
THE NFL IS THE MOST SUCCESSFUL SPORTS LEAGUE IN THE ENTIRE WORLD. TAKING THE LEARNINGS AND MARY GET WAS SOCCER ON A GLOBAL STAGE IN ITS MOST GRAND SCALE I THINK WE WILL SEE A FINANCIAL OUTCOME THAT NOBODY CAN EXPECT. SCARLET: YOU HAD AMERICAN MARKETING DAZZLE TO THE EFFORT AS WELL.
THE TOYOTA STADIUM WHERE DALLAS FC PLACE. IS A TRAINING LOCATION. IF YOU THINK ABOUT SPORTS, IT'S A MEDIA RIGHTS STORY. APPLE BEGAN AIRING LIVE MLS
GAMES BACK IN 2023. FROM WHERE YOU SIT WHAT HAVE BEEN THE BENEFITS OF THIS PARTNERSHIP? HOW HAS IT SHOWN UP FOR DALLAS FC? DAN: APPLE IS ONE OF THE GREAT IS COMPANIES IN THE ENTIRE WORLD. IF YOU TAKE YOUR TECHNOLOGY SPIN, THEY HAVE ENHANCED THE GAME TO EXPERIENCE. IT IS ON-DEMAND VIEWING WITH SPECIFIC TIMESLOTS. FOR US SPECIFICALLY IN DALLAS
AS WE THINK ABOUT RENOVATING TOYOTA STADIUM, WHICH WE HAVE BEEN WORKING ON FOR THE NEXT COUPLE OF YEARS, THERE ARE CERTAIN THINGS BEING AN OLDER STADIUM THAT ARE CHALLENGES. I WILL PICK ON THE LIGHTING. WE DID NOT CHANGE ANY OF THE LIGHTS IN THE STADIUM. IF YOU LOOK AT THE CLARITY AND BROADCAST APPLE PUTS FORWARD AND HOW THAT MARY'S WITH DIFFERENT -- MARRIES WITH T DIFFERENT ATMOSPHERES, THE QUALITY IS SO MUCH BETTER FOR FANS.
FANS WATCHING AT HOME AND ALSO THE TALENT, THE STUDIOS, THE WRAPAROUND SHOWS THEY DO. APPLE HAS CHANGED HOW WE THINK ABOUT BROADCASTING SPORTS. IT IS IN MULTIPLE LANGUAGES. ENGLISH AND SPANISH NOW. WE WILL HAVE FRENCH FOR THE CANADIAN TEAMS. PORTUGUESE. THIS WILL BE BROADCAST TO 106
COUNTRIES. THEY HAVE MADE MLS A HOUSEHOLD NAME FOR THE GLOBE. IT DOESN'T HURT TO HAVE LIONEL MESSI. ROMAINE: I'M CURIOUS GOING BACK TO THE WORLD CUP A COUPLE OF YEARS AND SOME OF THE CHANGES YOU ARE MAKING IN PREPARATION FOR THAT. IT IS A MUCH DIFFERENT ANIMAL
DEALING WITH A BIG INTERNATIONAL EVENT AS OPPOSED TO BRINGING FANS FROM THE GREATER DALLAS AREA. WHEN YOU'RE DEALING WITH THESE FOLKS WITH DIFFERENT THING WHICH AND CULTURES CONGREGATING AT ONCE, WHAT TYPE OF ACCOMMODATIONS HAVE YOU TO MAKE SURE THE STADIUMS AND THE SURROUNDING AREAS ARE PREPARED FOR? DAN: THERE ARE SOME ANY THINGS THAT GO INTO PUTTING ON A WORLD CUP. DALLAS IS THE PERFECT CITY FOR IT WITH TWO MAJOR AIRPORTS. YOU LOOK AT THE HOTELS, THE AFFORDABILITY, THE FACILITIES. PUBLIC TRANSPORTATION IS A BIG DEAL.
EACH COMMUNITY HAS A DIFFERENT SPIN ON IT. WE HAVE A GREAT COMMITMENT AND DALLAS ON THE PUBLIC TRANSPORTATION AUTHORITY. IF YOU HAVE A GAME TICKET OR HAVE A TICKET TO ONE OF THE OTHER EVENTS YOU WILL HAVE FREE TRANSIT TO GO TO THOSE EVENTS. I THINK IT IS A BIT OF A PROCESS. DALLAS IS A GLOBAL CITY. MOST OF THE CITIES ARE NOW GLOBAL CITIES. YOU HAVE A LOT OF DIFFERENT LANGUAGE SPEAKERS HERE.
THE KEY TO THESE EVENTS IS THE VOLUNTEERS. THERE WILL BE THOUSANDS OF VOLUNTEERS. TOTALLY THEY WILL HELP US FACILITATE A GREAT EXPERIENCE FOR VISITORS. WE HAVE WORKED HARD WITH THE UW INTERNATIONAL AIRPORT AND HOW THAT -- DFW INTERNATIONAL AIRPORT. CUSTOMS IS A GIGANTIC ISSUE AND A LOT OF MARKETS. YOU HAVE A NUMBER OF TRAVELERS ENTERING THE MAJOR CITIES EITHER ON PUBLIC TRANSIT ROTATION OR PRIVATE AIRCRAFT. THESE ARE ALL THINGS WE HAVE TO
SORT THROUGH. IT IS NOT REALLY THE SUMMER OF SOCCER. WE ARE IN THE TWO-YEAR WINDOW OF SOCCER. ONE OF THE MOST AMAZING TIMES IN THE HISTORY OF SOCCER IN THIS COUNTRY.
ON THE WOMEN'S SIDE WE SEE NWSL WITH UNPRECEDENTED GROWTH. THIS IS SUCH A GREAT MOMENT TO BE INVOLVED IN A BEAUTIFUL GAME. I WISH MY FATHER-IN-LAW WAS ALIVE TO SEE IT.
HE WORKED SO HARD TO MAKE IT WORK IN THIS COUNTRY. HE WAS ONE OF THE FOUNDING FATHERS OF THE MODERN PROFESSIONAL GAME. HE WAS CHAIRMAN OF THE DALLAS BID IN 1994. HIS BELOVED KANSAS CITY WILL
HAVE GAMES WITH MY BROTHER CLARK AS CHAIRMAN FOR THAT. SCARLET: YOU JUST GOT YOUR SUPER BOWL RING BECAUSE OF YOUR INVOLVEMENT WITH THE CHIEF SO CONGRATULATIONS ON THAT. I WANT TO END WITH TAXES AND SPORTS TEAMS. SPORTS TEAMS IN STATES WITH NO STATE INCOME TAXES HAVE AN ADVANTAGE OVER TEAMS BASED IN SAY CALIFORNIA OR NEW YORK WHEN IT COMES TO RECRUITING TALENT. TALK ABOUT HOW YOU CAN USE THAT FINANCIAL EDGE TO STRUCTURE YOUR ROSTER IN ORDER TO PRODUCE BETTER PERFORMANCE ON THE FIELD.
IS THAT SOMETHING YOU THINK ABOUT? DAN: IT'S A GREAT SALES POINT. TEXAS IS ONE OF THE MOST AMAZING BUSINESS MARKETS IN THE WORLD. DALLAS IS NOW A REALLY GLOBAL CITY.
FOR US AS WE RECRUIT SOCCER PLAYERS WE TALK ABOUT NOT HAVING LOCAL STATE INCOME TAX. THAT IS A BIG DEAL FOR PLAYERS THAT ARE LOOKING AT THE DALLAS MARKET VERSUS A MARKET LIKE NEW YORK OR LOS ANGELES. THEIR MONEY GOES SO MUCH FURTHER. WE HAVE GREAT SCHOOL DISTRICTS. HOUSING IS SO AFFORDABLE EVEN IN THIS UNBELIEVABLE BOOM TIME SINCE COVID. YOUR DOLLAR GOES SO MUCH FURTHER IN THE STATE OF TEXAS THAN A DOES IN OTHER MARKETS. FOR US TO RECRUIT PLAYERS LIKE PETRA MUSA, THE CROATIAN NATIONAL TEAM PLAYER AND EXPLAIN HOW MUCH FURTHER HAS MONEY WILL GO IN THIS MARKET, IT MAKES A BIG DIFFERENCE FOR US. IF YOU LOOK AT OTHER SPORTS
LEAGUES, SO MANY PLAYERS RESIDE IN THE OFF-SEASON IN TEXAS, AND FLORIDA, NEVADA. WE SEE THAT FROM NFL PLAYERS, NBA PLAYERS. IT'S A DEFINITE AT PLANET -- ADVANTAGE. SCARLET: TEAMS FROM CANADA ARE DEFINITELY AT A DISADVANTAGE COMPARED TO THE U.S. AND PLACES LIKE FLORIDA AND TEXAS.
WE APPRECIATE YOU JOINING US. DAN HUNT OF FC DALLAS. DALLAS WAS THE SITE RECENTLY OF ANOTHER HISTORICAL CUP BUT IT WAS FOR CRICKET. TEAM USA PULLED OFF ONE OF THE BIGGEST UPSETS IN THE SPORT'S HISTORY BY BEATING PAKISTAN LAST WEEK. WE ARE JOINED BY -- DID YOU WATCH THE GAMES? -- THE MATCHES. >> YES. THE MATCHES. IT'S A HISTORIC MOMENT IN THIS COUNTRY.
HE WOULD NEVER HAVE THOUGHT ABOUT IT BUT IT'S HAPPENING NOW AND WITH THE USA TEAM QUALIFYING FOR THE NEXT STAGE. ONE OF THE FINAL EIGHT TEAMS IN THE TOURNAMENT. THE BANDWAGON WILL CONTINUE TO ROLL ON FOR A LITTLE WHILE LONGER. SCARLET: WHEN IT COMES TO THE TEAM, WHAT'S FASCINATING IS THE MAKEUP OF THEM AND WHAT THEY ARE, AND TELL US ABOUT THAT. SRIDHAR: NOT VERY DIFFERENT FROM THE 1950'S SOCCER TEAM IN THE WEST WHEN THEY PULLED OFF THE HISTORIC UPSET OVER ENGLAND.
THAT WAS A TEAMMATE OF A PART-TIME PLAYERS. VERY MUCH SO WITH THIS 2024 USA CRICKETING. IT'S A LOT OF PEOPLE FOR WHOM CRICKET IS A PASSION FOR ANOTHER FULL-TIME GIG. A LOT OF TECH WORKERS, WHO WERE
DRIVERS, RESTAURANT WORKERS. THEY FORMED A TEAM AND CLEARLY AS A TEAM THEY ARE DOING WELL ENOUGH TO BE COUNTED AMONG THE VERY BEST. ROMAINE: IT'S FUNNY YOU MENTIONED THE WOMEN'S SOCCER, A LOT OF PEOPLE CREDIT FOR ELEVATING THE AWARENESS OF THE INTERNATIONAL GAME OF SOCCER HERE. I'M WONDERING IF WHAT WE HAVE SEEN COULD DO THE SAME FOR CRICKET. THERE WERE FOLKS TAKEN OFF GUARD. I WAS WALKING AROUND NEW YORK THE OTHER WEEKEND AND I HAD NO IDEA THEY HAD A BIG MATCH BETWEEN INDIA AND PAKISTAN. I SAW EVERYONE IN THE SHIRTS.
I FELT LEFT OUT. SRIDHAR: IT WAS A BIG DAY. YOU WERE LEFT OUT IF YOU DID NOT WATCH THE GAME. IT'S TRUE. LET'S BE REAL. IT IS NOT JUST BECAUSE THEY HAVE THIS WORLD CUP YOU WILL HAVE A SUDDEN MASSIVE INCREASE OR SURGEON POPULARITY. THERE WILL BE A BLIP BUT IT
WILL GO DOWN AGAIN. THE BIGGER CHALLENGE IS HOW YOU GROW THIS OVER THE NEXT 20, 30 YEARS. WHEN I TALKED ABOUT THE 1950 WIN , IT DID NOT IMMEDIATELY TAKE UP AFTER THAT. IN 1994, THE SOCCER WORLD CUP CAME TO THE U.S. IT TOOK 20, 30 YEARS TO LOOK AT A SERIOUS COMMERCIAL PROSPECT IN THIS COUNTRY.
IT MIGHT BE FASTER THAN THAT FOR CRICKET. AS I LIKE TO TELL EVERYONE, THE SCIENTIFIC DEFINITION OF CRICKET IS THE MORE INTERESTING VERSION OF BASEBALL. THE CHANCES OF IT BECOMING MORE POPULAR MORE QUICKLY OUR LITTLE HIGHER. ROMAINE: OH BOY.
SENIOR EMAILS TO -- HE HAS A GREAT STORY HERE ABOUT THAT WORLD CUP TOURNAMENT. SCARLET: VERY DRAMATIC PHOTOS AS THEY CELEBRATE THEIR WIN ON THE CRICKET MATCH. NOT GAME. ROMAINE: ARE YOU AWARE OF THE ONE OUT ON LONG ISLAND OVER THE WEEKEND? IT WAS A BIG DEAL BETWEEN INDIA AND PAKISTAN. THEY BUILT THIS WHOLE TEMPORARY STADIUM THERE. I WAS KIND OF OUT OF THE LOOP. SCARLET: I'M SURE IT WAS ON FAN TOOL AND DRAFTKINGS. ROMAINE: BUT IT'S COMING.
THE MATTER IS IF THEY CAN -- SCARLET: DISNEY'S SPORTS AMBITIONS RESTED A LOT ON ITS ABILITY TO AIR CRICKET. THEY LOST THAT. THAT'S ANOTHER THING WE ARE LOOKING AT HERE. WE ALSO LOOKED AT THE MEH PERFORMANCE OF STOCKS. WE ARE NEAR RECORD HIGHS SO IT
IS NOT LIKELY REALLY FELL. THE RUSSELL 2000 DEFINITELY FELL. ROMAINE: OBVIOUSLY IT IS LITTLE MEH ON THE DAY BUT THE DROP ON THE RUSSELL, TRANSPORT, SOME CONCERN THERE. IF YOU CROWDED INTO THAT SPACE YOU DID PRETTY WELL. SCARLET: ADOBE WAS A BIG WINNER TODAY. FRENCH STOCKS AND BONDS CONTINUED TO DECLINE. THE FRENCH STOCK ETF LOSING 3.3%.
THERE WAS SOME FLOCKING TO SAFE HAVENS LIKE GOLD. THIS IS "THE CLOSE." SCARLET: FATHER'S DAY IS HERE AND WITH IT THE CHALLENGE OF PICKING A PERFECT GIFT FOR DAD THAT DOES NOT INVOLVE TIES OR GOLF BALLS. I WENT TO BLOOMINGDALE'S FLAGSHIP STORE TO MEET WITH THE DIRECTED WHO DIRECTS THIS MARKETING STRATEGY. >> THERE ARE SOME TO GIFT YOU CAN BUY FOR THE BARBECUE LOVER IN YOUR LIFE. YOU CAN GET THEM A GREAT TOOL
SET. FOR THE GOLF LOVER WE HAVE GOLF BAGS AND DIFFERENT TRAVEL KITS. FOR THE TRASH AND OF -- FASHION OBSESSED WE HAVE HOT TRENDY ITEMS FOR THE ONES WILL BE BY THE POOL ALL SUMMER. WE HAVE GREAT SWIM ASSORTMENTS.
THERE ARE MANY WAYS YOU CAN GO THIS FATHER'S DAY. >> WHILE GIVES ARE STILL IN PLAY, THE CLASSIC POLO SHIRT HAS MET HIS MATCH. >> YOU SEE THE HOTTEST ITEM IS SOMETHING WE HAVE NOT SEEN BEFORE. THE SHORT SLEEVE KNIT. EVERY ONCE IN A WHILE YOU WILL
GET SOME THING THAT IS FUN AND DARING FOR THE MALE CONSUMER. >> HOW IS THAT DIFFERENT FROM A POLO SHIRT? >> IT'S A FULL SWEATER KNIT. THAT WAS THE NEW HOT ITEM FOR THE MALE CONSUMER THIS SUMMER. WHEN A MAN FINDS SOMETHING THEY LOVE, THEY WILL BUY SEVERAL OF THEM. SCARLET: ALONG WITH THAT LAST FERMENT? -- FOR MEN? DAD'S DAY GIFTS ARE A MUST BUY FOR MOST CONSUMERS. THE EBBS AND FLOWS OF THE OVERALL ECONOMY ALSO INFLUENCE WHAT CONSUMERS BUY AND HOW MUCH OF IT.
>> PEOPLE ARE IMPACTED TO FULLY BY WHAT'S GOING ON. WE SEE SOME PEOPLE BUYING LESS FREQUENTLY BUT SPENDING MORE ON BUYING THE PIECES THAT WILL LAST FOR THEM. SCARLET: IT'S A TALL ORDER TO FIND THE TIMELESS GIFT BUT THERE'S SOMETHING OUT THERE FOR EVERY TYPE OF DEBT. THE PROS ARE STANDING BY READY TO HELP. HAPPY FATHER'S DAY. THERE IS MORE THAT CAME FROM. WE WILL SHARE MY CONVERSATION
WITH DENISE, THE CHIEF DATA FROM BLUEBELLS. JOINING US NOW ON MENSWEAR IS MARY ROSS GILBERT, SENIOR EQUITY RESEARCH ANALYST. GREAT TO SPEAK WITH YOU. WHAT IS INTERESTING WITH WHAT DENISE TOLD US IS THAT THE WAY MEN SHOP IS DIFFERENT FROM THE WAY WOMEN SHOP. CLEARLY THAT SEEN IN THE FREQUENCY AND HOW OFTEN THEY UPDATE THEIR WARDROBE AND THE VOLUME THAT THEY BUY IN. YOU HAVE BEEN COMBING THROUGH DATA ON MENSWEAR APPAREL. WHAT DID YOU FIND THAT STUCK OUT TO YOU? MARY: WE LOOKED AT A COUPLE OF THINGS. ONE THING WE TRACK IN ADDITION
TO LOOKING AT THE COMPOSITION OF MENSWEAR. MENSWEAR, PRIMARILY APPAREL COMPRISES ANYWHERE FROM 15 TO 20% OF REVENUES -- 15% TO 20% OF REVENUES FOR DEPARTMENT STORES. WITH REGARD TO HOW BIG IS FATHER'S DAY RELATIVE TO MOTHER'S DAY, WE LOOKED THROUGH BLOOMBERG'S SECOND MEASURE AND LOOKED AT WHAT HAPPENED IN 2023. IN 2023, SALES FOR MOTHER'S DAY WERE ANYWHERE FROM 12% TO 35% HIGHER. AT DILLARD'S, MOTHER'S DAY WAS 35% HIGHER THAN FATHER'S DAY. FOR THE REST OF THE RETAILERS, THE DEPARTMENT STORES, SOMEWHERE IN THAT SORT OF 12% RANGE HIGHER ON MOTHER'S DAY. JUST TO GIVE YOU AN IDEA.
ROMAINE: I THINK THAT IS CRIMINAL. IN ALL SERIOUSNESS THERE HAS BEEN DISCUSSION ABOUT THE IMPORTANCE OF THE MALE SHOPPER. THE IDEA THAT A LOT OF RETAILERS PREFER THE WOMAN SHOPPER BECAUSE THEY FEEL LIKE SHE SPENDS MORE AND MAKES MORE OF THE HOUSEHOLD DECISIONS. SHE SPENDS MORE FREQUENTLY HERE. WE HAVE SEEN STORES -- I CAN
SPEAK TO THE BLOOMINGDALE'S ACROSS THE STREET FROM BLOOMBERG WORLD HEADQUARTERS HERE, THEY HAVE A REALLY EXPENSIVE MIDSECTION WHICH I LOVE AND IT IS SEPARATED FROM EVERYTHING ELSE. I DON'T HAVE TO BE IN THE MIDST OF ALL THE PERFUMES. I LOVE THAT. I WANT TO SEE MORE RETAILERS UNDERSTAND WE HAVE MONEY AND MEN MATTER. MARY: ABSOLUTELY. IF YOU LOOK AT SOME BRANDS, FOR EXAMPLE IN THE CLIP YOU ARE SHOWING, RALPH LORENZ STOOD UP.
-- RALPH LAUREN STOOD OUT. MENSWEAR AND ACCESSORIES TO BE SPECIFIC. ABOUT 56% OF THE PURCHASING IS HAPPENING BY WOMEN. THAT WILL HAPPEN ACROSS THE BOARD. THIS IS SIMILAR TO LEVI'S. IT'S ABOUT THAT 625% FIGURE. WE THINK IT IS FAIRLY CLOSE TO THAT FIGURE FOR OTHER DENIM BRANDS LIKE WRANGLER AND LEE'S PARENTS WHICH IS CONTOUR BRANDS. THEY SKEW TO THE MALE.
THAT IS WHY THE WOMEN'S PART OF THE BUSINESS HAS BEEN A BIG GROWTH FACTOR. YES, MENSWEAR IS VERY IMPORTANT. FOR ABERCROMBIE & FITCH, HALF THE STORIES MENSWEAR, HALF HIS WOMENSWEAR. ROMAINE: WE ARE GETTING THERE. DEMOCRATIZATION. MARY, GREAT STUFF. MARY ROSS GILBERT A BLOOMBERG INTELLIGENCE. THAT'S A WONDERFUL PACKAGE. I CAN'T HELP NOTICE YOU SPENT
THIS TIME FILMING THIS. WHAT DID YOU GET ME? SCARLET: YOU'RE NOT MY FATHER. I DON'T NEED TO GET YOU ANYTHING. WE TALKED ABOUT RETAILERS CATERING TO MEN. LULULEMON HAS DONE THAT. THEY HAVE REALLY FOCUSED ON PROVIDING COMFORTABLE OFFICE PANTS FERMENT. ROMAINE: I REMEMBER GOING INTO A
LULULEMON 10 TO 15 YEARS AGO AND THE MIDSECTION WAS LIKE ONE LITTLE HANGER OF SLACKS. NOW IT IS MUCH MORE EXPANSIVE. I THINK A LOT OF STORES ARE WAKING UP TO THE FACT WE HAVE MONEY AND WE ACTUALLY SHOP. SCARLET: AND YOU LIKE TO BECOME TO BLESS THE OFFICE. ROMAINE: I LIKE BEING ON EDGE OF THE OFFICE. OOH.
IS ALMOST THE WEEKEND. WE ARE ABOUT TO WRAP UP THE SHOW BUT DON'T GO ANYWHERE. WE WILL SET YOU UP FOR WHAT TO WATCH NEXT WEEK. THIS IS BLOOMBERG. ROMAINE: LET'S SET YOU UP FOR SOME POTENTIAL MARKET MOVING EVENTS NEXT WEEK.
WE START OFF IN CHINA. SCARLET: I DATA DUMP. WE HAVE THE UNDER CLEMENT RATE. -- UNEMPLOYMENT RATE. THEY GOT RID OF PUBLISHING THE YOUTH EMPLOYMENT RATE. ROMAINE: BACK IN THE U.S. ON CAPITOL HILL WE WILL HEAR
FROM THE BOEING CEO GOING BACK TO TESTIFY ON ISSUES FACING THE PLANE MAKER. SCARLET: THIS IS A FAMILIAR THING NOW. THERE'S A MEA CULPA AND A PROMISE TO DO BETTER. WHAT ARE THEY GOING TO HAVE SOMEONE IN PLACE TO REALLY MOVE THE COMPANY IN A NEW DIRECTION? ROMAINE: NOT SO MUCH WHAT HAPPENED IN THE PAST BUT HOW THE COMPANY WILL MOVE FORWARD IN THE FUTURE. JUST A REMINDER, THIS WEDNESDAY IS A HOLIDAY HERE IN THE U.S. MARKETS WILL BE CLOSED FOR
JUNETEENTH. SCARLET: IT BECAME A PUBLIC HOLIDAY IN 2021. PEOPLE TAKE OFF HER JUNETEENTH AND THEY TAKE OFF ALL THE WAY THROUGH THE FOURTH OF JULY. MAYBE WE'LL SEE SLOWER TRADING. ROMAINE: WHO WERE THESE PEOPLE? SCARLET: NOT YOU AND ME BUT OTHER PEOPLE.
ROMAINE: THEIR DECISIONS THEY WILL MISS IF THEY DECIDE TO TAKE OFF FROM THE BOE AND NORGES BANK. SCARLET: WE WILL BE COVERING ALL OF THAT. THERE IS ALSO EARNINGS WITH THIS HOLIDAY SHORTENED WEEK. ROMAINE: WE WILL GET SOME EARNINGS OUT OF SOME OF THE HOMEBUILDERS. KB HOMES. INTERESTING READ ON CONSUMER SPENDING IN THE HEALTH OF THE HOMEBUILDING SECTOR. THE S&P END OF QUARTER REBOUND
GOES INTO EFFECT BASICALLY ONE WEEK FROM MONDAY HERE. CROWD STRIKE IS GOING INTO THE S&P 500. SCARLET: ALONG WITH GO DADDY. REMEMBER WHEN THEY WERE JUST AN ADVERTISER ON RANDOM SHOWS? ROMAINE: NEVERTHELESS, A FULL BREAKDOWN OF THE MARKET COVERAGE AS WE DO EVERY DAY RIGHT HERE ON THE CLOSE. THANK YOU FOR JOINING US THIS WEEK. STICK AROUND.
2024-06-23