July Beige Book Drops, OpenAI Plans AI Speaker Device | Bloomberg Businessweek Daily 7/15/2026

>> THIS IS "BLOOMBERG BUSINESSWEEK DAILY," REPORTING FROM THE MAGAZINE THAT HELPS GLOBAL LEADERS STAY HAD WITH INSIGHT ON THE PEOPLE, COMPANIES AND TRENDS SHAPING TODAY'S COMPLEX ECONOMY. GLOBAL BUSINESS, FINANCE AMTECH NEWS AS IT HAPPENS. "BLOOMBERG BUSINESSWEEK DAILY" WITH CAROL MASSAR AND TIM STENOVEC LIVE ON BLOOMBERG RADIO, TELEVISION AND BLOOMBERG ORIGINALS. CAROL: GOOD AFTERNOON. IT IS A FED WEDNESDAY FOR A COUPLE REASONS. IT IS JULY 15, 2026. CAROL MASSAR WITH TIM STENOVEC. TIM: IS IT HARD ENOUGH FOR YOU? CAROL: [LAUGHTER] I HAVE NOT BEEN OUTSIDE SINCE I WALKED IN THIS MORNING. IT IS ON OUR MIND AND IS THE AIR QUALITY. IN TERMS OF IT BEING A FED WEDNESDAY, KEVIN WARSH ON A CAPITOL HILL FOR A SECOND DAY. WE ARE ALSO AWAITING THE RELEASE OF THE FED'S BEIGE BOOK. I AM THAT YOU ARE GLUED TO THE FED'S WEBSITE. TIM: AND THE TERMINAL. IT COMES LITTLE AFTER 2:00. WE WILL BRING YOU THAT AS SOON AS WE GET IT. MIKE MCKEE WILL BE JOINING US. HE IS IN IDAHO. WE LOOK FORWARD TO TALKING TO HIM. CAROL: SOME ANNOUNCEMENTS FROM HIM ON INFLATION. WE GOT THE PPI THIS MORNING. A CHIEF INVESTMENT STRATEGIST WILL TALK ABOUT WHY TECH REMAINS THE SECULAR BULL MARKET SECTOR. SHE WILL TALK EARNINGS BACKDROP. SHE LIKES SEMI CONDUCTORS. TIM: OPENAI, FRESH OFF A LAWSUIT ACCUSING IT OF STEALING TRADE SECRETS. MARK WILL BE STOPPING BY. CAROL: TALK ABOUT TIMING. TIM: A BLOOMBERG EXCLUSIVE. CAROL: WE WILL GET A READ ON THE CONSUMER, THE BAR AND PUB SPACE AND THE WORLD CUP WAS SOMEONE WHO HAS BEEN IN THE FOOD SERVICE INDUSTRY. WE WILL TALK WITH THE PRESIDENT OF SILVERCHEF U.S., JON JACOBS. TIM: I HAVE SOME BEIGE BOOK HEADLINES. ECONOMIC ACTIVITY INCREASING AT A SLIGHT TO MODERATE PACE. ONE DISTRICT REPORTED NO CHANGE. THE PACE OF GROWTH WAS CLOSE TO THAT OF LAST PERIOD. IT WAS FLAT IN ONE AND DOWN IN ONE. HIGHER PRICES FOR A FEW DAMPEN SALES IN OTHER CATEGORIES SO PEOPLE SPENDING MORE ON GAS AND LESS ON OTHER THINGS. SEVERAL DISTRICTS NOTED DECLINES. TOURISM WAS UP WITH SOME DISTRICTS RECEIVING BOOSTS FROM WORLD CUP VISITORS. AUTO DEALERS REPORTED LITTLE CHANGE IN SALES. CAROL: IT IS ANECDOTAL EVIDENCE, A SNAPSHOT OF ECONOMIC CONDITIONS ACROSS THE 12 FED DISTRICTS. WE WILL DIG INTO WHAT TIM JUST READ WITH MIKE MCKEE. WE WANT TO GET YOU CAUGHT UP ON THE MARKET ON THIS WEDNESDAY. WE HAVE SEEN STOCKS BOUNCE OFF OF THEIR LOWS. STILL DOWN ON THE NASDAQ 100. CHARLIE: HERE IS WHAT IS GOING ON. A LOT OF MOVING PARTS TO THE MARKET. I HAVE YOU COVERED WITH THE S&P UP 26. A GAIN OF JUST ABOUT .3%. THE INDUSTRIALS UP 164 POINTS. NASDAQ HIGHER BY 156 POINTS, .6%. TECH STOCKS, THE NASDAQ 100 TUMBLING BY .3%. ALL OF THIS WITH ANOTHER ROUND FOR SEMIS. THE SEMICONDUCTOR INDEX IS DOWN 2.4%. 10 YEAR WITH KEVIN WARSH ON CAPITOL HILL, 4.54%. GOLD UP $13 THE OUNCE. UP .3%. WEST TEXAS INTERMEDIATE CRUDE DOWN .6%. $78.90 A BARREL FOR WTI. WE HEARD FROM MORGAN STANLEY THIS MORNING. STOCK TRADESRS SET ANOTHER QUARTERLY RECORD. A 69 PERCENT JUMP FROM ITS PREVIOUS ALL-TIME HIGH. MORGAN STANLEY SHARES UP 20%. GOLDMAN SACHS UP .2%. OTHER HEADLINES. ANTHROPIC PLANNING AND IPO INVESTOR MEETING AS IS MEGA LISTING YEARS. SPACEX TRADING AROUND ITS IPO PRICE. FOR MUCH OF THE DATE WAS TRADING BELOW THE $135 LEVEL. SOURCES TELL THE YANKEES ARE IN ADVANCED TALKS TO RAISE $3 BILLION OF FINANCING FOR APOLLO GLOBAL MANAGEMENT. IN THE NORTHEAST, IT IS HOT AND THE AIR IS BAD. EXTREME HEAT TESTING POWER GRIDS AS AIR QUALITY DROPS FROM WILDFIRE SMOKE DRIFTING IN FROM CANADA. NEW YORK CITY'S AIR QUALITY INDEX HAS A RATING OF UNHEALTHY FOR EVERYONE. S&P UP .4%. THAT IS A BLOOMBERG BUSINESS/. CAROL: APPRECIATE THAT. CHARLIE PELLETT. WE WANT TO GET BACK TO WHAT WE HAVE IN TERMS OF THE BEIGE BOOK. TIM READING SOME HIGHLIGHTS. IT IS AN ANECDOTAL READ FROM REGIONAL BANKS. PART OF THE FEDERAL RESERVE. ON LABOR MARKETS, PRICES, ECONOMIC ACTIVITY. TIM: PRICES INCREASE MARTYRED FAIRLY -- PRICES INCREASED MODERATELY. ON THE LABOR MARKET, EMPLOYMENT ROSE. SEVEN DISTRICTS EXPERIENCED LITTLE TO NO CHANGE. THE OVERALL ECONOMIC ACTIVITY IS ONE I'M FOCUSED ON. IT DOES SAY ECONOMIC ACTIVITY INCREASED AT A SLIGHT TO MODERATE PACE IN 11 OF 12 DISTRICTS IN LATE MAY AND JUNE. CAROL: LET'S GET TO IT. THIS IS COMING ON A DAY WHERE FED CHAIR KEVIN WARSH IS ON CAPITOL HILL BEFORE THE SENATE BANKING COMMITTEE. A BROAD-BASED COOLING IN SOME KEY CATEGORIES THAT WERE BOOSTED IN RECENT MONTHS BY THE FALLOUT FROM THE WAR. IN TERMS OF KEVIN WARSH, WE WANT TO GIVE YOU WILL HIGHLIGHT. HE WAS PRESSED BY DEMOCRATIC SENATOR CHRIS VAN HOLLEN. CHAIR WARSH SAID BEFORE I RAISED MY RIGHT HAND HE HAS NOT TRY TO INFLUENCE THE CONDUCT OF MONETARY POLICY. >> HAVE YOU OR HAVE YOU NOT HAD PR -- COMMUNICATIONS WITH PRESIDENT TRUMP. I DO NOT WANT TO BE IN THE >>. THEY CHOSE AN INDEPENDENT GUIDE TO DO AN INDEPENDENT JOB AND THAT IS WHAT I PLAN ON DOING. OVER THE LAST SEVEN WEEKS, GIVEN THE DECISIONS WE HAVE MADE, IT IS NOT JUST WORDS, IT IS ACTIONS. CAROL: THAT' IS FED CHAIR KEVIN WARSH. BLOOMBERG TV AND RADIO CORRESPONDENT MICHAEL MCKEE IS AT THE 13TH ANNUAL ROCKY MOUNTAINS SUMMIT. HE IS IN VICTOR, IDAHO. SHOULD WE START WITH BEIGE BOOK? ANYTHING HELPFUL? MIKE: NOTHING REALLY HELPFUL. THE AIR HERE IS A LOT BETTER THAN IN NEW YORK CITY FROM WHAT I UNDERSTAND. THE BEIGE BOOK TELLS YOU ABOUT WHAT PEOPLE WERE THINKING BEFORE JULY 6. THAT IS THE CLOSING DATE FOR THIS BEIGE BOOK, PREPARED BY THE FEDERAL RESERVE BANK OF CHICAGO. WHAT IS INTERESTING TO ME IS IN THE SECTION ON PRICES, THEY TALK ABOUT BUSINESS THIS THING PRICES ARE STILL GOING UP IN THOSE AREAS. THAT WAS ABOUT A WEEK OR SO AFTER, IN THEORY, THE MEMORANDUM OF UNDERSTANDING STARTED PUSHING OIL PRICES DOWN. THERE IS A LAG. THE INFLATION WARNING IN THE BEIGE BOOK COULD BE A LITTLE OUT OF DATE. I WOULD SAY IT IS OUT OF DATE OTHER THAN THE FACT WE ARE SEEING PRICES RISE AGAIN FOR ENERGY. CAROL: REMIND US WHEN THIS DATA SET WAS TAKEN. MIKE: THEY BASICALLY COLLECT DATA BETWEEN THE TWO FED MEETINGS. THE LAST FED MEETING IN JUNE WAS ON THE 17TH. BETWEEN THE 17TH AND JULY 6 WAS WHEN THE DATA WERE COLLECTED. THE BANK GOT INFORMATION FROM OTHER BANKS AROUND THE NATION. AS TIM WAS POINTING OUT, A WIDE VARIETY OF THEM WERE SEEING INCREASES IN PRICES. THE LAG EFFECT OF THE WAR IS DEFINITELY ON VIEW IN THIS REPORT. TIM: CONSUMER SPENDING RELATED TO OIL PRICES. CONSUMER SPENDING HAS HIGHER PRICES FOR FUEL DAMPENING SALES AND OTHER CATEGORIES. SEVERAL DISTRICTS HAD DECLINES IN SPENDING ON DISCRETIONARY ITEMS. IS THAT MORE OF THE SAME? IS THERE ANYTHING NEW IN THAT WITH REGARD TO DISCRETIONARY SPENDING? MIKE: ESSENTIALLY IT IS THE SAME THING WE ARE HEARING FROM ALL THE RETAILERS. WHAT WE HAVE BEEN EXPECTING TO HEAR. PEOPLE TRADE DOWN, MORE MONEY GOES INTO GASOLINE AND LESS MONEY GOES INTO OTHER DISCRETIONARY PURPOSES. TOMORROW WE GET THE RETAIL SALES REPORT FOR JUNE. WE WILL SEE IF THAT PLAYS OUT. I WOULD EXPECT TO SEE A BIG INCREASE IN GASOLINE STATION SALES. THE LAG EFFECTS OF THE PRICE LYNN INCREASES WERE STILL IN GAS PRICES. YOU WILL PROBABLY SEE SOME OF THAT TOMORROW. THE QUESTION IS WHAT HAPPENS GOING FORWARD? JULY AND AUGUST RETAIL REPORTS WILL BE MORE IMPORTANT TO THE FED. THAT IS BACK-TO-SCHOOL SEASON. WE WILL SEE IF PEOPLE ARE REALLY CUTTING BACK OR THEY FEEL LIKE THEY CAN KEEP SPENDING. CAROL: I DO NOT KNOW WHAT IT IS ABOUT YOUR ECONOMIC AND FED TYPES BUT WHEN YOU DO A SUMMIT YOU ARE IN COOL PLACES. [LAUGHTER] TIM: PORTUGAL, IDAHO, JACKSON HOLE. CAROL: WHAT IS REALLY GOING ON? MIKE: WHAT IS REALLY GOING ON IS BUSINESS PEOPLE AND ECONOMISTS ARE COMING TOGETHER. THERE IS NO FISHING GOING ON, NO HORSEBACK RIDING. IT IS ALL TALK ABOUT THE ECONOMY. I WAS SITTING WITH PAUL, THE FORMER PIMCO ECONOMIST AT BREAKFAST AND WE WERE TALKING ABOUT KEVIN WARSH. CAROL: WHAT DID HE SAY? REAL QUICKLY. MIKE: THE FEELING IS WARSH HAS TO EARN HIS CREDIBILITY. HE DID SAY HE THOUGHT THE ECONOMY COULD USE LOWER RATES WHEN HE WAS TRYING TO GET THE JOB. HE IS BUILDING THE CREDIBILITY WITH THE MARKETS. HE SAID THE MARKETS ARE UPSET WITH HIM. I DO NOT THINK THAT IS THE CASE. I THINK THE MARKETS LIKE WHAT THEY HEAR. HE GAVE THEM A LITTLE BIT TODAY OF THE REACTION FUNCTION, SAYING THE FED WANTS TO SEE GROWTH BROADEN AND INFLATION NARROW. HE DID NOT MENTION ANY CATEGORIES. YOU CAN IMAGINE THE THINGS THEY ARE LOOKING AT. CAROL: GOOD STUFF. LOOKING FORWARD TO YOUR REPORTING. TIM: DO YOU JUST DID THERE FOR THE NEXT MONTH UNTIL JACKSON HOLE? MIKE: I WAS THINKING ABOUT IT. IF YOU COULD STOP BY MY DESK AND FORWARD MY PHONE, THAT WOULD BE GREAT. TIM: [LAUGHTER] DONE. CAROL: MICHAEL MCKEE IS AT THE 13TH ANNUAL ROCKY MOUNTAINS SUMMIT IN IDAHO. TIM: I CANNOT SEE ALL THOSE FED OFFICIALS IN VEGAS. CAROL: NO. [LAUGHTER] THEY ARE NEVER THERE. OR THOSE BIG CONVENTION CENTERS. IT DOES NOT COME OUT THAT WAY. THAT IS OUR ECONOMIC BACKDROP. OUR MARKET WATCHERS ARE IN THE YET THE ECONOMY AND WHAT WE ARE GETTING IN TERMS OF FED POLICY AND WHAT THAT MEANS FOR EVALUATION. TIM: MARY ON BARTEL. 64 BILLION DOLLARS IN ASSETS ON HIS PLATFORM. TECH COMPLIANCE, RESEARCH SERVICES TO ITS PARTNER FIRMS ACROSS MORE THAN 30 STATES. SHE JOINS US FROM NEW YORK. I WANT TO START WITH WHAT WE WERE TALKING ABOUT WITH MIKE AND THE MACRO ECONOMIC BACKDROP. WHAT WE GOT FROM THE BEIGE BOOK AND WHAT WE HEARD FROM KEVIN WARSH. WHAT DO YOU THINK SHOULD MATTER TO INVESTORS THE MOST RIGHT NOW> >> I THINK WHAT MATTERS THE MOST IS HOW OUR SECOND QUARTER EARNINGS GOING TO COME IN? I DO LIKE WHAT SHARE WARSH HAS DONE IS SET CONFIDENCE IN THE MARKETS THAT THEY WILL TACKLE INFLATION. THE INFLATION GAUGES OF CPI AND PPI CAME IN REMARKABLY BELOW EXPECTATIONS. I THINK SETTING A POSITIVE TONE ON INFLATION, INFLATION GAUGES EASING UP, WE CAN FOCUS ON EARNINGS. FIRST QUARTER EARNINGS CAME IN UP 30% YEAR-OVER-YEAR. IT IS POSSIBLE WE HAVE ANOTHER QUARTER WHERE WE GET CLOSE TO 30% GROWTH. A LOT OF THAT BEING DRIVEN BY THE TECH SECTOR. HAVING A STRONG BACKDROP FOR THE ECONOMY, THE CONSUMERS DOING WELL, SPENDING IS GOING UP IN ALL PHASES WERE ALL AREAS OF THE CONSUMER. HIGH, LOW AND MIDDLE ARE ALL RISING WITH A BIG UPTICK IN THE LOW-END CONSUMER. THIS REALLY FEELS LIKE WE ARE STILL SITTING IN GOLDILOCKS LAND. CAROL: YOU WERE ON A LITTLE LESS THAN A MONTH AGO. S&P 500 IS UP 2.5% SINCE THEN. BLOOMBERG MAG 7 IS UP 9%. NASDAQ 100 IS KIND OF FLAT. OUTPERFORMING MAJOR GROUPS IN THE S&P 500 WERE COMMUNICATION STARTS, FINANCIALS, CONSUMER DISCRETIONARY AND ENERGY. WHAT HAS CHANGED SINCE WE TALKED IN LATE JUNE IN TERMS OF MARKET LEADERS AND FUNDAMENTALS? HAVE THE EARNINGS ESTIMATES BEEN RISING FOR A LOT OF GROUPS OR JUST TECHNOLOGY? MARY ANN: THERE ARE BIG UPGRADES HAPPENING WITHIN TECHNOLOGY. ENERGY IS THE SECTOR THAT IS SUPPOSED TO PRODUCE THE BEST IN THE QUARTER. I'M NOT HEARING A LOT OF PEOPLE TALK ABOUT THAT. A LOT OF STRATEGISTS LOWER THEIR OIL PRICES WHEN WE THOUGHT THERE WAS A GOOD CEASE-FIRE. WE HAVE SEEN OIL PRICES FIRM. I WILL BE PAYING ATTENTION TO WHAT IS HAPPENING IN THE ENERGY SECTOR. WHAT IS HAPPENING WITHIN THE MARKET OVERALL IS WE ARE GETTING A LOT OF SECTOR ROTATION. SO WE DID GET A CORRECTION IN THE MAG SEVEN. THEY LOOK LIKE THEY BOTTOMED AND ARE RALLYING. SEMICONDUCTORS HAVE BEEN STRONG LEADERS, BUT I THINK THEY ARE AT RISK OF CORRECTING. WHEN THEY CORRECT, THEY CAN CORRECT PRETTY SHARPLY. SOMEWHERE IN THE RANGE OF 30% TO 50%. ONE WE SAW THEM CORRECT IN THE MID-1990'S, THAT WAS THE RANGE THEY CORRECTED AND RESUMED THEIR UPTREND. I AM NOT A BIG FAN OF HEALTH CARE. I KNOW THERE HAS BEEN SOME DEFENSIVE MONEY MOVING THERE. I LIKE BIOTECH. DON'T LIKE THE CONSUMER STAPLES AT ALL. I DON'T FEEL THEY HAVE GOOD PRICING IN THERE. WHEN WE LOOK AT COMMUNICATION SERVICES, I LIKE THAT AREA BECAUSE I AM A BIG FAN OF ALPHABET. META MAY HAVE BOTTOMED, BUT YOU DO HAVE PART OF THE MAG SEVEN IN COMM SERVICES. TIM: DID YOU GET ANYTHING FROM KEVIN WARSH'S TESTIMONY TODAY WITH REGARD TO AI OR THE MAG SEVEN THAT IS OF INTEREST TO YOU? WHAT'S TO COME TO ME IS IN THE NEAR TERM HE SAID INVESTMENT IS GOOD FOR JOBS -- WHAT STOOD OUT TO BE IS HE SAID IN THE NEAR TERM AI INVESTMENT IS GOOD FOR JOBS. HE HAD SOME INTERESTING COMMENTARY ABOUT THE WAY COLLEGE GRADUATES HAVE THE TOOLS HE THINKS TO SUCCEED IN A WORLD WITH AI. SINCE YOU FOLLOW TECH CLOSELY, I AM CURIOUS WHAT YOU THINK ABOUT WHAT HE SAID. MARY ANN: THE THINGS YOU BROUGHT UP ABOUT JOBS AT AI, THERE HAS BEEN A LOT OF FEAR THAT WE ARE GOING TO LOSE JOBS, AND WE HAVE EVEN WRITTEN THE SURPRISE IS PROBABLY WE WILL CREATE JOBS. WHEN WE HAVE LOOKED AT MAJOR TECHNOLOGICAL ADVANCEMENTS IN OUR ECONOMY, THEY HAVE NOT TAKEN AWAY JOBS. THEY HAVE ALWAYS CREATED FEAR IT WOULD TAKE AWAY JOBS, BUT IN FACT THEY ACTUALLY CREATE JOBS, AND THEY PROBABLY ARE GOING TO CREATE SOME JOBS THAT HAVE NEVER EXISTED BEFORE. THIS IS SOMETHING WE ARE STILL KIND OF LEARNING. SO I THINK AI IS GOING TO BE TRANSFORMATIVE. WE JUST PUT OUT OUR MIDYEAR REPORT. BUT AS I WAS WRITING ON TECHNOLOGY, THERE WAS SO MUCH TO TALK ABOUT. I ACTUALLY WROTE A SEPARATE REPORT JUST ON TECHNOLOGY BECAUSE IT IS THE MAJOR DRIVER. IT IS THE BIGGEST LEAP IN TECHNOLOGY WE THINK SINCE THE 1700S WHEN WE CREATED THE STEAM ENGINE. I KNOW THERE IS A LOT OF TALK RELATIVE TO THE RAILROADS, AND THERE IS GOOD COMPARISON IN TERMS OF THE CAPITAL INTENSITY THAT IS NEEDED FOR THE BUILDOUT IN AI. CAROL: JUST GOT 25 SECONDS. SEMICONDUCTORS AND THE BIG MAG SEVEN, JUST QUICKLY, ALL OF THAT YOU LIKE OR YOU THINK IS OPPORTUNITY? MARY ANN: FROM A LEADERSHIP STANDPOINT, THEY ARE STILL THE LEADERS. IF I HAD TO BUY TODAY, I THINK YOU ARE GETTING BETTER VALUE IN THE MAG SEVEN. I AM LOOKING FOR A CORRECTION IN SEMIS, BUT I WOULD BE A BUYER ON THAT CORRECTION. CAROL: GREAT STUFF. REALLY APPRECIATE IT. THEY HAVE $64 BILLION IN ASSETS ON THEIR PLATFORM. JOINING US RIGHT HERE IN NEW YORK CITY. COMING UP NEXT, OPENAI JUST OFF A LAWSUIT FROM APPLE ACCUSING IT OF STEALING TRADE SECRETS, MOVING TO EXPRESS DEVICE. TIM: MARK GURMAN HAS THE BLOOMBERG EXCLUSIVE AND WILL STOP BY IN A FEW MINUTES. THAT IS NEXT ON "BLOOMBERG BUSINESSWEEK DAILY." ♪ CHARLIE: WE DO CHECK MARKETS ALL DAY LONG HERE AT BLOOMBERG. API WEDNESDAY, AND THIS MORNING WE HAVE A REPORT SHOWING SOFTER THAN ANTICIPATED INFLATION DRIVING STOCKS AND BONDS HIGHER FOR THE MOST PART. S&P UP 27.THAT IS AGAIN A 0.4%. DOW INDUSTRIALS UP 133 POINTS, 0.3%. NASDAQ IS UP 0.7%, BUT A TOUGH DAY FOR A LOT OF BIG TECH NAMES. THE NASDAQ 100 INDEX DOWN 0.2%. INTERESTINGLY, SEEING SEMICONDUCTORS HIT HARD TODAY. THE MAG SEVEN INDEX NOW ADVANCING BY 2.3%. THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX DOWN NOW BY 2.3%. ALL OF THIS WITH THE VIX BELOW 16 AND THE 10 YEAR AT 4.54%. THE TWO YEAR 4.12%. GOLD IS UP $18 THE OZ. SPOT GOLD AT 4071, 0.5%. WEST TEXAS INTERMEDIATE CRUDE JUST ABOUT FLAT ON THE DAY, BELOW $80 ON WTI. BRENT BELOW $85. $84.72 A BARREL. THE PAYMENT PROCESSING FROM STRIPED AND PRIVATE EQUITY FIRM ADVENT INTERNATIONAL HAVE OFFERED TO BUY PAYPAL HOLDINGS FOR MORE THAN $50 BILLION. PAYPAL SHARES ARE SURGING NOW BY 16.8%. BRIEFLY, AND TOPIC PLANS INVESTOR IPO MEETINGS AS ITS MEGA LISTING NEARS. SPACEX NOW TRADING SLIGHTLY ABOVE $135. THAT WAS THE IPO PRICE. RIGHT NOW, AND IS AT $135.91 -- IT IS AT $135.91. THE YANKEES ARE IN TALKS FOR $3 BILLION IN FINANCING FROM APOLLO. S&P 500 INDEX UP BY 0.4%. THAT IS YOUR BLOOMBERG BUSINESS FLASH. CAROL: ALL RIGHT, EVERYBODY. WE WANT TO GET TO A BLOOMBERG EXCLUSIVE. MARK GURMAN REPORTING OPENAI'S FIRST DEVICE WILL BE A HUMANLIKE AI COMPANION OF SORTS IN THE FORM OF A MOBILE SCREEN FREE SMART SPEAKER. TIM: AM I GETTING FLASHBACKS TO ALEXA FIRST BEING ANNOUNCED BY AMAZON? CAROL: MAYBE. TIM: I DON'T KNOW. LET'S ASK MARK GURMAN. HE JOINS US IN THE STUDIO. TRUSTINGLY, YOU NOTED THIS IN YOUR PIECE, SO NO SHARES TOOK A DIVE. MARK: YEAH BECAUSE IF YOU THINK ABOUT IT, ALL THEY DO IS SMART SPEAKER'S AND SMART HOME STUFF AND IT IS ALL VERY COMMODITIZED. THIS OPENAI DEVICE WILL BLOW IT OUT OF THE WATER FOR AI PURPOSES. I WOULD BE SHOCKED IF IT CAME ANYWHERE CLOSE TO SONOS SO THEY ARE DISTINCT PRODUCTS FROM THAT STANDPOINT. BUT YOU ARE RIGHT, THIS IS LIKE THE ORIGINAL ALEXA PITCH 12 YEARS AGO BROUGHT TO LIFE FOR THE FIRST TIME. TIM: HOW IS IT BROUGHT TO LIFE, OR HOW WILL IT BE BROUGHT TO LIFE ACCORDING TO YOUR REPORTING? MARK: THEY SEE THE SMART SPEAKER AS A NEW TYPE OF COMPUTER. THEY CALL IT AN AI COMPUTER THE FIRST COMPUTER BUILT FOR THE AI ERA. RIDICULOUS BUT NO SCREEN SPEAKER. YOU TALK TO IT AND THEY SEE IT AS A COMPANY IN YOUR HOME SO IT CAN LISTEN, LEARN ABOUT YOU OVER TIME AND HAVE BACK-AND-FORTH CONVERSATIONS AND GETS TO KNOW YOU AND YOUR PERSONAL DATA BASED ON WHAT YOU HOOKED UP TO CHATGPT AND BECOMES A BETTER COMPANION OVER TIME AS IT LEARNS MORE ABOUT YOU BEGIN TO CHINA DURING LIVE CONVERSATIONS LIKE ANOTHER HUMAN IN YOUR HOME. CAROL: HAVE YOU PLAYED WITH IT? MARK: NO. I WISH. CAROL: WHAT IS IT COMING? -- WHEN IS IT COMING? MARK: WE ARE BREAKING NEWS ON THIS. THEY ARE NOT COMMENTING ON THIS. WHEN IS IT COMING? THEY HOPED TO INTRODUCE IT THIS YEAR AND WILL LET OUT NEXT YEAR BUT THE APPLE LAWSUIT IS A BIG OVERHANG SO AT THIS POINT WHY ALL THIS IS THE PLAN, THEY ARE GOING THROUGH FORENSIC SWEEPS AND TRYING TO UNDERSTAND THE TRADE SECRET SITUATION WITHIN OPENAI TO SEE IF THIS IS SOMETHING THAT WILL GET DELAYED OR HAVE AN IMPACT ON ITS FIRST PRODUCT LAUNCH. TIM: ARE HIS FINGERPRINTS ALL OVER IT? MARK: HIS FINGERPRINTS ARE ALL OVER IT. IF YOU LOOK BACK AT THE HISTORY OF APPLE, THESE PEOPLE HAVE BEEN KNOWN TO HELP PEOPLE CONNECT TO TECHNOLOGY, MAKING TECHNOLOGY FEEL PERSONAL MORE YOU LIVE -- MORE ALIVE AND EMOTIVE. IT IS THE FIRST SMART SPEAKER FEELS LIKE IT IS DESIGNED BY JOHNNY. APPLE HAS THE HOMEPOD, BUT THAT THING IS HOT GARBAGE. IT IS NOT A GREAT PRODUCT. THIS WILL BE DIFFERENT. CAROL: DOES EVERYBODY HAVE TO BE WORRIED? MARK: I LIKE MARK -- TIM: I LIKE MARK. HE IS SETTLE. CAROL: I KNOW. TELL US MORE. IT SOUNDS LIKE IT CAN BLOW EVERYBODY AWAY. MARK: I THINK APPLE SHOULD BE WORRIED ABOUT WHAT THEY GOT. CAROL: GOOGLE? MARK: GOOGLE SHOULD BE WORRIED. THE REAL SECRET SAUCE HERE IS THE AI MODELS. AT SOME POINT, THESE WILL ALL GET COMMODITIZED AND EVERYONE WILL BE IN THE SAME PLACE. TIM: CLAUDE WILL BE THE SAME AS CHATGPT. MARK: CHATGPT IS WAY AHEAD OF EVERYBODY ELSE RIGHT NOW IN TERMS OF THESE VOICE INTERACTIONS. IF YOU TRIED CHATGPT LIVE, IT IS EXCELLENT. YOU CAN HAVE BACK-AND-FORTH CONVERSATIONS. IT CAN INTERRUPT YOU. VERY ADVANCED TECH. OTHERS WILL CATCH UP WITH HIM EVENTUALLY. SECRET SAUCE IS THE MODELS. APPLE AND GOOGLE HAVE GREAT DESIGNERS. OTHERS WILL BE ABLE TO CATCH UP IN THIS SPACE. APPLE FOR ITS PART IS ABOUT TO ROLL OUT A BUNCH OF SMART HOME APPLIANCES ALSO. CAROL: CAN WE TALK SIRI? I THOUGHT I HEARD YOU ON SURVEILLANCE WITH TOM AND PAUL SAYING YOU HAVE BEEN PLAYING WITH THE NEW AI STUFF ON APPLE. MARK: THAT WAS NOT ME. NO, I'M JOKING. CAROL: I KNOW I HAD MY COFFEE IN THE MORNING WHEN I HEARD IT. MARK: SIRI AI IS VERY COMPETENT. CAROL: I WORK WITH PEOPLE WHO ARE VERY COMPETENT. TIM IS WAY ABOVE COMPETENT. MARK: TIM IS LIKE CHATGPT. TIM: THANK YOU. MARK: SOMEONE WHO IS COMPETENT IS LIKE SIRI AI. SOMEONE WHO SHOULD NOT BE HERE IS LIKE THE OLD SIRI. CAROL: OK. MARK: THAT IS THE DIFFERENCE. YOU ARE NOT ANYWHERE NEAR CHATGPT. SIRI WILL TAKE EVERYTHING YOU THROW AT IT BUT NOT DOING AS WELL AS TIM. TIM: ON WHAT BASIS OF HARDWARE? MARK: I HAVE USED IT ON EVERYTHING. TIM: WILL THAT WORK ON OLD PHONES WELL? MARK: IT IS SUPPOSED TO WORK ON THE 15 PRO AND UP. PROBABLY WORKS FINE ON THE 15 PRO. PROBABLY SOME OF THE NEW FEATURES WITH THE BOYS, YOU CAN CHANGE THE VOICE EXPRESSIVENESS, THOSE REQUIRE THE NEWER MODELS THAN THE RAM YOU CAN GET. TIM: THE QUESTION I ASKED SIRI THE OTHER DAY, WHAT IS THE NEXT FED MEETING -- WHEN IS THE NEXT FED MEETING? SIRI SAID THERE IS NOTHING IN YOUR CALENDAR LIKE THAT. CAROL: WAS IT IN YOUR CALENDAR? MARK: WHEN IS THE NEXT FED MEETING? I GOT THE NEW SIRI. THE NEXT FEDERAL RESERVE MEETING IS SCHEDULED FOR JULY 28 TO 29, 2026. TIM: SO IT DOES NOT WORK ON MY OLD IPHONE BUT IT WORKS ON THE NEW ONE. MARK: YOU EXPECT SI TO ENTERI -- SIRI TO ANSWER THOSE QUESTIONS. IT WILL NOT DO EXTENSIVE TRAVEL PLANNING OR CREATING THINGS AT THE DEGREE YOU CAN CREATE AND GENERATE WITH CHATGPT, BUT I WILL SAY THE IMAGE GENERATOR ON THE NEW SIRI IS PRETTY GOOD. TIM: WHAT IS THE PLATFORM THEY ARE USING TO DO THAT? MARK: THE MODELS ARE APPLE MODELS BUT THEY ARE OPEN HOOD AND YOU HAVE GEMINI TECHNOLOGY, SAME AS THE NEW SIRI. CAROL: OK, SO IS EVERYBODY GOING TO NOW LOOK AT OPENAI WHEN IT COMES TO DEVICE INNOVATION? HAS MARK: I DO NOT THINK APPLE HAS LOST ITS EDGE BUT I THINK CHATGPT AND OPENAI HAVE THE UNIQUE OPPORTUNITY OF COMBINING TOP-TIER MODELS AND TOP-TIER ENGINEERING BUT THE BAR TO REPLACE APPLE AND THE IPHONE ARE SKYHIGH. DO NOT FORGET THE LAWSUIT. CAROL: GO. MARK: YOU WOULD BE NUTS TO LEAVE APPLE FOR OPENAI AFTER READING THE LAWSUIT. YOU DO NOT WANT TO DO THIS. THEY DO NOT WANT TO LOSE MORE PEOPLE TO OPENAI. CAROL: THE DEVICE AT OPENAI ARE STARTING TO ROLL OUT. ARE THE AT RISK DEPENDING ON HOW THE LAWSUIT PLAYS OUT? MARK: THERE CAN BE AN INJUNCTION OUT OF THIS. THEY COULD BE HALTED BY THE COURTS. APPLE COULD GET THE ITC INVOLVED. IF APPLE FINDS TRADE SECRETS OF THERE'S IN THE PRODUCTS THEY WILL GO TO WAR AGAINST OPENAI. TIM: WE ARE SPEAKING WITH THE BLOOMBERG NEWS MANAGING EDITOR FOR GLOBAL CONSUMER TECH. CAROL: TALK ABOUT THIS PICTURE. [LAUGHTER] MARK: THAT IS THEIR PRESS SHOT. YOU ARE COMBINING THE BEST AI GUY --ARGUABLY. PEOPLE HAVE A LOT OF THOUGHTS ON SAM ALTMAN. TIM: I STILL HAVE THE QUESTION, IF THERE IS THIS A DEVICE PEOPLE WILL WANT? 12 YEARS AGO WE SAW THE FIRST VIDEO FOR ALEXA FROM AMAZON AND PEOPLE SAID THIS IS NOT SOMETHING PEOPLE WILL ADOPT. AMAZON STUNNED EVERYBODY AND EVERYBODY ADOPTED THE AMAZON ECHO DEVICES. MARK: THE DIFFERENCE BETWEEN 2014, WHEN ALEXA WAS ANNOUNCED, AND 2027, PEOPLE ARE SCARED OF AI. TIM: DO YOU WANT THIS IN YOUR HOME? MARK: . 12 YEARS AGO IT WAS SO NOVEL. PEOPLE ARE INTO PRIVACY NOW. PEOPLE SEE THE ADS THAT APPLE HAVE AGAINST META. THE BAR IS A LITTLE HIGHER. TIM: THE ALWAYS LISTENING AI DEVICE. MARK: IT IS NOT ALWAYS LISTENING BUT IT WILL HAVE SENSORS AND CAMERAS TO GET CONTEXT THROUGHOUT THE DAY. CAROL: WE HAVE GOOGLE HOME. THERE ARE THINGS I LOVE ASKING IT. THERE ARE TIMES I DO NOT LOVE THEM TALKING CONSTANTLY. I WANT TO GO TO APPLE FOR A MOMENT. ABOUT APPLE PRODUCTS COMING OUR WAY. [LAUGHTER] MARK: THERE IS A LOT. I WILL HAVE TO TAKE MY WALLET AND PUT IT IN THE DOOR, LOCK IT AND THROW THE KEY OUT. [LAUGHTER] THERE IS A TON OF STUFF COMING. THIS WILL BE THE MOST PROLIFIC PERIOD OF NEW PRODUCTS IN APPLE HISTORY. TIM: STARTING IN SEPTEMBER? WHAT WILL BE GET? MARK: WHAT CAN I TALK ABOUT? THE NEW IPHONES. THE IPHONE ULTRA. I AM SO EXCITED. I HAVE WANTED A FOLDABLE PHONE FOR SO LONG. IT WILL BE EXPENSIVE BUT I CANNOT WAIT. JUST GETTING THAT SCREEN REAL ESTATE TO POP THAT THING OPEN AND MULTITASK, I LOVE BEING PRODUCTIVE AS A TECH NERD. CAROL: [LAUGHTER] MARK: NEXT YEAR, THE FOLDABLE 2. THE 20TH ANNIVERSARY IPHONE. THEY HAVE LOOKED AT SMART GLASSES AND HOW THEY INTEGRATE HEALTH INTO THE SMART GLASSES. I'M NOT SURE THERE WILL BE THERE ENGINE 1. TIM: IS THERE ANY HEALTH IN AIRPODSS RIGHT NO? MARK: THE HEART RATE. THERE IS ALSO THE HEARING AID. HAVING THE HEART RATE ON THE AIRPODS IS WORTHLESS IF YOU ARE WEARING AN APPLE WATCH. WHAT IS REALLY GOOD FOR IS PEOPLE WHO WORK OUT. IF YOU DO NOT WANT TO WEAR. CAROL: IS THIS A BIG DEAL? MARK: CHINA IS A HYPERMARKET. APPLE HAS BEEN LEAVING USERS BEHIND. IF IT IS THE FIRST GEN, IT IS WORTHLESS BECAUSE THOSE FEATURES DO NOT WORK. THE MEAT AND POTATOES WILL BE THE NEW APPLE INTELLIGENCE. TIM: OUR DAILY DOSE OF MARK. WE LOVE HAVING YOU HERE. CAROL: IT IS SO MUCH FUN. MARK: THANK YOU. TIM: ESPECIALLY WHEN THE WEATHER IS LIKE THIS. MARK: IT WAS A WARNING. DON'T GO OUTSIDE. WHAT DOES THAT EVEN MEAN? IS THERE SOMETHING GOING ON? TIM: WILDFIRES. CAROL: MAYBE AI CAN FIX THAT. CHARLIE: IT IS 2:40 ON WALL STREET. STOCKS CONTINUE TO PUSH HIGHER. INFLATION DATA FROM THIS MORNING. THE REPORT IS OUTWEIGHING. HAVE TO BEGIN WITH WHAT IS GOING ON WITH SEMI CONDUCTORS. PHILADELPHIA STOCK EXCHANGE SEMI CONDUCTOR INDEX IS DOWN 2.6%. THE NASDAQ 100 INDEX IS DOWN .3%. X SEMI CONDUCTORS, S&P UP 26. . DOW INDUSTRIALS UP WITH 3%. NASDAQ HIGHER BY .6%. THE MAG 7 INDEX RALLYING BY 2.3%. THE 10 YEAR ON A PPI WEDNESDAY, 3.54%. GOLD OF $17 THE OUNCE. CRUDE NOW AT $79.80 A BARREL. A BARREL OF BRENT AT $85.18. APPLE SHARES ARE RALLYING BY 4.1%. APPLE HAS RECEIVED CHINESE GOVERNMENT APPROVAL TO ROLL OUT APPLE INTELLIGENCE IN CHINA. SPACEX AROUND ITS IPO PRICE, $135.37. RIGHT NOW SPACEX DOWN .5%. ANTHROPIC IS PLANNING IPO INVESTOR MEETINGS AS ITS MEGA LISTING YEARS. THE YANKEES IN TALKS FOR $3 BILLION IN FINANCING FROM APOLLO. S&P UP .4%. THAT IS A BLOOMBERG BUSINESS FLASH. CAROL: CAROL MASSAR ALONG WITH TIM STENOVEC AT BLOOMBERG HEADQUARTERS IN NEW YORK CITY. IT IS HARD TO BELIEVE THE WORLD CUP WRAPS UP THIS WEEKEND. TIM: EVERYBODY SHOULD BE WATCHING OUR PROGRAM IN 18 MINUTES BUT I THINK SOME PEOPLE WILL WATCH THAT SEMIFINALS. CAROL: [LAUGHTER] OUR PRODUCER SEBASTIAN IS FROM COLOMBIA. HE COMES IN WITH SOME GREAT FACTOID. TIM: HE WILL BE WORKING TODAY, NOT WASHING THE WORLD CUP. CAROL: HE IS A MULTITASKER. TIM: SOME DISTRICTS REPORTED INCREASE IN TOURISM. CAROL: IN EARLY JUNE WE REPORTED STRONG HIRING IN LEISURE AND HOSPITALITY LED TO A SURGE IN HIRING IN THE U.S. AND CANADA. THAT WAS A LEADING UP TO THE WORLD CUP. THEY TALKED ABOUT BOOSTED BY HIRING AT RESTAURANTS, THE U.S. HOSPITALITY INDUSTRY ADDED THE MOST JOBS IN MORE THAN THREE YEARS IN MAY. CANADA SIGNED A JUMP IN EMPLOYMENT DRIVEN IN PART BY STRONG HIRING IN THE SECTOR. THE POINT IS MANY EXPERTS AND WASHERS SAID GAINS WILL BE FLEETING. IT IS BECAUSE OF THE WORLD CUP. TIM: THE PRESIDENT OF U.S. OPERATIONS AT SILVERCHEF, JON JACOBS. ABOUT 100 THOUSAND CUSTOMERS GLOBALLY, FOUNDED IN 1986. THEY PROVIDE FINANCING FOR THINGS LIKE STOVES, FANS AND REFRIGERATORS. TELL US WHAT YOU ARE SEEING WITH YOUR BUSINESS. WHAT YOU DO FOR RESTAURANTS AND BARS, PUBS AND HOW THAT HAS CHANGED IN ANTICIPATION OF AND DURING THE WORLD CUP. JON: THANK YOU FOR HAVING ME TODAY. THE CHANGE HAS BEEN DRAMATIC. AS WE START TO LOOK AT THE GROWTH IN THE PICKUP OF THE HOSPITALITY INDUSTRY AS A WHOLE, INDEPENDENT RESTAURANT OWNERS HAVE HAD AN OPTION -- THEY NEEDED TO UPSKILL IN STAFFING, MARKETING AND EVERYTHING ELSE AND IT ALL COSTS. THE ABILITY TO DO THIS IN ADVANCE -- HOSPITALITY HAS ALWAYS BEEN ONE OF THE LEADING INDUSTRIES. LEADING INDUSTRIES, AND TO HAVE THE WORLD CUP AS AN EVENT THAT HELPS JUMPSTART THE ECONOMY THIS SUMMER HAS BEEN FANTASTIC. SO IT HAS BEEN ABLE TO HELP US AS WE GO FORWARD IN THE INDUSTRY BECAUSE OUR FIXABLE FINANCING HAS PROVIDED THE OPPORTUNITY TO MOVE WITH THE RESTAURANT MARKET. WHAT DO I MEAN BY THAT? THIS IS NOT JUST A ONE-TIME EVENT. A RESTAURANT OWNER NEEDS TO LOOK AT PRESERVING CASH OR TO SPEND IN ADVANCE OF THE EVENT, WE ARE HERE TO HELP BUT ALSO HERE TO HELP AND PROVIDE THE FLEXIBLE OPPORTUNITY, MEANING TODAY YOU NEEDED AN ICE CREAM MACHINE, TOMORROW IS THE WORLD CHANGES, AS WE GET PAST THIS WORLD CUP EVENT, AS WE GET INTO MAYBE EVEN THE 2028 OLYMPICS, YOU CAN CHANGE WITH YOUR CONSTITUENTS AND THEIR NEEDS AND THEIR ASK. CAROL: WHEN THESE GUYS -- I THINK YOU MAKE A GOOD POINT. WE HAVE HAD JOHN ON TONS OF TIMES TO TALK ABOUT BARS. BARS, RESTAURANTS. IT IS A REALLY TOUGH BUSINESS. SLIM MARGINS CERTAINLY WHEN IT COMES TO RESTAURANTS, AND THERE IS THE FAILURE RATE. WE ALL KNOW THE STORIES THAT HAVE BEEN TALKED ABOUT BY THAT. FOR THESE FOLKS YOU WORK WITH, YOU ARE PROVIDING THEM A FINANCIAL LIFELINE TO MEET THEIR NEEDS AND DEMANDS AND BUILD OUT THEIR BUSINESS. WHEN YOU DO SOMETHING, IS THAT OFTEN THEY ARE VENTING OR WHAT PERCENTAGE ACTUALLY RENT TO OWN ULTIMATELY, OR IS IT JUST HAVE YOU RENTED FOR AN UPTICK IN DEMAND FOR SOMETHING LIKE THE WORLD CUP? JON: THAT IS A GREAT QUESTION. IT IS A 12 MONTH WEEKLY PAYMENT, SO THERE IS A PORTION OF THE PAYMENTS THAT GO TOWARDS EQUITY. 60% OF EVERY PAYMENT MADE GOES TOWARDS EQUITY. WE ALLOW A RESTAURANT OWNER TO BUY THE EQUIP MEN AT ANY POINT IN TIME USING THE EQUITIES BUILT INTO IT. THERE ARE END OF TERM OPTIONS ONCE WE GOT PAST 52 WEEKS. AS A LOYALTY PROGRAM WE CAN PUT YOU ON OR YOU CAN CONTINUE MONTH-TO-MONTH WITH THE SAME PAYMENT, BUT THE BIGGEST ADVANTAGE IS THE FLEXIBILITY. IN THIS INDUSTRY, IN FINANCE, NOBODY WANTS THE ASSET-BACKED. BUT WHAT WE DO IS WE SAY, IT IS COOL, I WANT IT BACK. GIVE IT TO ME. LET ME HELP YOU GROW. TODAY IT IS A SINGLE DOOR FRIDGE. TOMORROW, IT IS THE TWO DOOR FRIDGE. WE TAKE THE SINGLE DOOR FRIDGE BACK AND ALLOW YOU TO PUT A TWO DOOR FRIDGE ON THE CONTRACT. A REMARKABLE CONCEPT. TIM: YEAH. BECAUSE YOU ARE ACTIVE IN THESE DIFFERENT COUNTRIES AND HAVE 70 CUSTOMERS, HAVE A GREAT VIEW ON WHAT IS HAPPENING IN CERTAIN REGIONS OF THE WORLD, CERTAIN PARTS OF THIS COUNTRY. WHAT IS HOT AND WHAT IS NOT IN THE U.S. RIGHT NOW? JON: EXCLUDING THE WORLD CUP, WHICH HAS BEEN VERY HOT IN MOST MARKETS, NOT JUST IN THOSE HOST CITIES, BUT IN CITIES THAT HAVE BEEN ABLE TO HAVE WATCH PARTIES AND SUPPORT OF DIFFERENT COUNTRIES, THERE IS A LOT GOING ON. I WILL PREFACE THIS BY SAYING THE U.S. AND CANADA HAS GONE THROUGH THIS PERIOD OF BOTH ECONOMIC QUESTION AND ALSO HEAT. HEAT BEING ONE OF THE BIGGEST ISSUES FOR THE SUMMER. MOST PEOPLE DON'T WANT TO GO OUT. ECONOMIC DISPARITY INTO THE USE OF DISPOSABLE INCOME, BUT THE GROWTH HAS BEEN IN FAMILY-STYLE OPPORTUNITIES. PEOPLE STILL HAVE A LITTLE BIT OF THIS COVID HANGOVER. THEY WANT TO GO OUT. THAT HAS BEEN THE BEAUTY OF THE WORLD CUP BECAUSE YOU GO OUT AND SUPPORT YOUR TEAM REGARDLESS OF WHAT TEAM THAT IS, AND WE ARE ALL MARCHING TO THE SAME DRUM. WE ARE ALL PAYING ATTENTION TO IT. YOU CAN WALK TO ANYBODY IN THE EVENT, WHETHER IT IS AT A BAR OR RESTAURANT OR ANY OTHER HOSPITALITY FUNCTION AND BE IN A FAMILY ENVIRONMENT. WE ARE HUMANS. CAROL: TOTALLY GET IT. WE HAVE BEEN TALKING ABOUT IT. IT HAS BEEN FUN WALKING IN AND AROUND NEW YORK CITY AND JUST EVEN OUTSIDE OF THE CITY. THE COMMUNITY FEEL OF PEOPLE AT RESTAURANTS, BARS WATCHING GAMES TOGETHER HAS BEEN COOL TO SEE. HAVING SAID THAT, YOU COULD BE AND ARE A GREAT READ ON THE ECONOMY THROUGH SMALL BUSINESS. JUST GOT ABOUT 40 SECONDS LEFT HERE. YOU HAVE SEEN DIFFERENT CYCLES. YOUR COMPANY HAS BEEN AROUND FOR A MILE. HOW WOULD YOU DESCRIBE THE MARKET FOR THE RESTAURANT COMMUNITY RIGHT NOW IN SMALL BUSINESS, REAL QUICKLY? JON: THE RESTAURANT COMMUNITY IN THE U.S. RIGHT NOW IS EXPERIENCING A PERIOD OF WHAT I WOULD CONSIDER GORMAN GROWTH. WE ARE LOOKING AT EVERYBODY SCALING UP. WHAT THEY ARE SCALING UP TO HIS THREE MONTH OR SIX MONTHS DOWN THE ROAD BUT PEOPLE ARE STARTING TO PUT THEIR CAPITAL AT WORK. THE ADVANTAGE AT SILVER CHEF IS THEY KEEP THE CAPITAL SPECIFICALLY. WE PROVIDE THE FINANCING TO MOVE FORWARD BUT THERE IS A LEVEL OF GROWTH EVERYONE IS RAMPING UP TO. THE ONE THING I HEAR MORE OFTEN THAN NOT IS THEY ARE SPENDING A LOT OF TIME GENERATING OPPORTUNITIES FOR BUSINESSES TO MOVE FORWARD. CAROL: INTERESTING STUFF. DEFINITELY A COOL TAKE ON SMALL BUSINESS, RESTAURANTS, AND THE WORLD CUP. THANK YOU SO MUCH, PRESIDENT OF U.S. OPERATIONS AT SILVER CHEF JOINING US. TIM: COMING UP NEXT ON "BLOOMBERG BUSINESSWEEK DAILY," WE GOT STOCKS ON THE MOVE. THE S&P 500 UP 0.3%. THE NASDAQ COMPOSITE UP 0.4%. DOW UP 0.2%. >> THIS IS "BLOOMBERG BUSINESSWEEK DAILY" WITH CAROL MASSAR AND TIM STENOVEC ON BLOOMBERG RADIO AND TELEVISION. CAROL: ALL RIGHT, EVERYBODY. IF YOU ARE JUST JOINING US, GETTING READY FOR THE LAST HOUR OF TRADE ON THIS WEDNESDAY. LIVE IN OUR BLOOMBERG HEADQUARTERS IN NEW YORK CITY, BOUNCING AROUND HERE ON THE EQUITY TRADE. LITTLE CHANGE, NOT EVEN UP 0.2% ON THE S&P. A GAIN OF 13 POINTS. DOW WAS UP 0.2%. THE NASDAQ 100 SLIGHTLY LOWER, DOWN 173 POINTS, GOOD FOR A DECLINE OF 0.6%. USED TO BE LIKE A MEH TRADE -- FEELS TO ME LIKE A MEH. TIM: LESS THAN EARLIER. CAROL: SO IT IS MEH. TIM: YEAH, BUT WHAT DO YOU WANT IN JULY? CAROL: I KNOW. TIM: YOU KNOW THERE ARE A LOT OF PEOPLE OUT OF TOWN WHEN THERE ARE PARKING SPOTS IN BROOKLYN. ENERGY IS DOWN 1% IN TERMS OF INDUSTRY GROUPS. UTILITIES, INFORMATION TECHNOLOGY LOWER, COMMUNICATION SERVICES LEADING THE PACK IN THE S&P 500. CAROL: I FEEL LIKE MY NEW INDICATOR OF MARKETS OR JUST SOMETHING WACKY IS THE SOX. JUST UP TO 1070% -- JUST UP 0.2%. TIM: IT WAS OVER EARLIER. CAROL: MAYBE I CAME UP WITH THE WRONG TICKER. IT IS DOWN. MY FINGERS DID NOT DO THE BLOCKING CORRECTLY IN THE RUBRIC. IT HAS BEEN DOWN 5%, NOW DOWN 3%. TIM: MAKING SURE. IT IS MY FIRST DECLINER. CAROL: YOUR HEART WENT A LITTLE FAST. TIM: IT IS GOING TO BE OK BUT I WILL FIND A NEW ONE, BUT IT WILL BE OK. CAROL: I AM CAROL MASSAR ALONG WITH TIM STENOVEC. LET'S GET YOU SOME STOCKS ON THE MOVE. WHERE DO YOU WANT TO BEGIN? >> I HAVE ONE MORE DECLINER FOR YOU. WE ARE GOING TO START WITH SPACEX. CAROL: I LOVE WHEN YOU DO THIS. >> SHARES ARE LOWER DOWN TODAY AND LOWER THAN THE THRESHOLD WE HAVE BEEN PUTTING AT FOR WEEKS. 100 $35, SLIGHTLY LOWER BUT NEVERTHELESS, IT IS AN IMPORTANT THRESHOLD. OF COURSE, THE TICKER IS SPXX. IT HAS BEEN A VERY VOLATILE IPO. IT IS ALWAYS EASY AFTER. IT SURGED NEARLY 50% IN THE FIRST THREE DAYS OF TRADING, LOSING NEARLY A QUARTER OF THE VOLUME OVER THE NEXT THREE SESSIONS. OBVIOUSLY VERY VOLATILE. A FEW INTERESTING THINGS WE HAVE BEEN LOOKING AT. PASSIVE FLOWS. SPACEX WAS ADDED TO THE RUSSELL AND NASDAQ 100, AND WE HAVE SEEN SOME OF THIS BOOST FROM PAST FUNDS, BUYING UP THE SHARES. BLOOMBERG INTELLIGENCE SAYS THIS IS ABOUT $5.4 BILLION IN BUYING. HOW LONG WILL THIS LAST? MOST OF THIS IS DONE SO THAT IS ONE PRESSURE POINT. OF COURSE, WE WILL HAVE THE FIRST QUARTER REPORT. THAT IS MASSIVE PRESSURE. PEOPLE ARE WORRIED. THIS MASSIVE SPENDING ON XAI AND THE AI BUILDOUT, WHAT DOES IT MEAN FOR CASH FLOW? THE NUMBERS ARE COMING. TIM: THERE ARE SOME OUT THERE WHO ARGUE THAT THIS LIKE OTHER ELON MUSK COMPANIES IS NOT NECESSARILY TRADING ON FUNDAMENTALS CURRENTLY. CAROL: SO THE QUESTION IS, WILL IT EVER? ALSO, WILL IT EVER HAVE FUNDAMENTALS THAT MAKE IT MORE REASONABLE IN TERMS OF ITS VALUATION? WILL IT BE PROFITABLE? TIM: ANALYSTS ARE POSITIVE ON IT. >> IF YOU LOOK AT WALL STREET, WE HAD AN $800 PRICE TAG. OVER 80% OF ANALYSTS HAVE A BUY RATING. IT IS OPTIMISTIC. NO ONE IS READY TO SAY SELL. CAROL: SO, REVENUES FORECASTED JUST IN REVENUES OF ABOUT $39 BILLION THIS YEAR. WHAT IS THE MARKET CAP? TIM: OVER $2 TRILLION. >> YEAH. TIM: YEAH. CAROL: FREE CASH FLOW. SUPER, SUPER NEGATIVE. TIM: WITH THE DECLINES, $1.7 BILLION -- EXCUSE ME, ONE POINT. $7 TRILLION CAROL: THIS IS THE PREDICAMENT THAT HAS ANYTHING TO DO WITH ELON BECAUSE IF YOU THINK ABOUT WHAT HE DID WITH TESLA, SAME STORY. >> EXACTLY. THAT VOLATILITY COMES AND GOES. FOR THOSE WHO DARE TO SHORT SOME OF THE NAMES, IT HAS BEEN A PAINFUL TIME. CAROL: ARE PEOPLE SHORTENING THIS ONE? >> I DON'T THINK SHORT INTEREST IS HIGH. IT IS HIGHER THAN I THOUGHT. CAROL: GOOD ONE. BLACKROCK, I LOVE THIS. THIS IS A GAINER TODAY. >> IT IS ALL ABOUT THE FEES AT LEAST IN MY OPINION. BLACKROCK IS UP TODAY. TICKER IS BLK. A BIG BET TO COMBINE INDEX FUNDS THAT ARE LOW FEE PASSIVE BUT ALSO MASSIVE IN ASSETS WITH HIGHER FEE ACTIVE ETS IN PRIVATE MARKETS AND THAT IS PAYING OFF . SHARES ROSE. IF WE LOOK AT THE ASSETS UNDER MANAGEMENT -- CAROL: THIS IS AMAZING BUT NOT A SURPRISE FORGET. DENISTA: DON'T KNOW HOW MANY ZEROS TO PUT THEIR. CROSSING $15 TRILLION FOR THE FIRST TIME. AND OUT OF THIS IS PASSIVE S&P FLOWS, BUT NONETHELESS IT IS FASCINATING. PUSHING INTO PRIVATE FUNDS AND ONE IMPORTANT METRIC PEOPLE ARE LOOKING AT, THEY REPORTED 8% GROWTH IN ORGANIC BASE FEES AND INVESTORS REALLY CARE ABOUT THAT. IT MEANS THEY CAN CHARGE INVESTORS MORE FOR THOSE MASSIVE FUNDS. MAYBE THAT IS ONE REASON WE ARE SEEING A SPIKE. TIM: 20 SECONDS ON PAYPAL. DENITSA: PAYPAL OBVIOUSLY IS WORKING. WE HAVE REPORTS OF GOLDMAN EVERCORE, A POSITION MAY BE COMING. STOCK IS UP 17% TODAY. WE WILL SEE WHAT HAPPENS, BUT A HISTORIC MOVE. CAROL: YEAH, DEFINITELY A BIG MOVER. THANK YOU SO MUCH, DENITSA TSEKOVA WOODSTOCK MOVERS. CHECK OUT DESTOCKED MOVERS -- CHECK OUT THE STOCK MOVERS PODCAST ANYWHERE YOU GET YOUR PODCASTS. TIM: COMING UP NEXT ON "BLOOMBERG BUSINESSWEEK DAILY," WE ARE GOING ALL IN ON THE EXTREME WEATHER FROM CALIFORNIA HEAT TO FLASH FLOODING IN TEXAS AND WHAT IT MEANS FOR THE GRID. THAT IS NEXT.