Incoming Tech Earnings, Fed Decision Day | Bloomberg Businessweek Daily 7/28/2026

>> THIS IS "BLOOMBERG BUSINESSWEEK DAILY," REPORTING FROM THE MAGAZINE THAT HELPS BUSINESS LEADERS STAY AHEAD. PLUS, GLOBAL BUSINESS, FINANCE, AND TECH NEWS AS IT HAPPENS. WITH CAROL MASSAR AND TIM STENOVEC, LIVE ON BLOOMBERG RADIO, TELEVISION, AND BLOOMBERG ORIGINALS. CAROL: A VERY GOOD AFTERNOON, EVERYBODY. THERE IS A LOT GOING ON. WE THINK IT IS THE RIGHT THING TO DO, THOUGH, AND HONORABLE THING JUST TO TAKE YOU TO THE NATION'S CAPITAL RIGHT NOW. THERE IS A SERVICE GETTING READY TO BE UNDERWAY AT THE WASHINGTON NATIONAL CATHEDRAL. A LIVE SHOT RIGHT NOW. FOR THOSE LISTENING ON THE RADIO, WE ARE SHOWING VICE PRESIDENT JD VANCE, DONALD TRUMP, MEMBERS OF HIS CABINET. SECRETARY OF STATE MARCO RUBIO IS THERE AS WELL, OBVIOUSLY GATHERED THERE. THERE ARE SOME LEADERS IN TOWN AS WELL. PRIME MINISTER NETANYAHU OF ISRAEL IS SAID TO BE PLANNING TO ATTEND, SO WE WILL OBVIOUSLY KEEP A WATCH ON THIS EVENT AND BRING YOU ANYTHING THAT NEEDS TO BE BROUGHT TO YOUR ATTENTION. TIM: THE TOPIC OF CONVERSATION ABOUT THE LIFE AND LEGACY OF THE LATE SENATOR HAS BEEN HIS SUPPORT AS A HAWK OF SOME OF THE CONFLICTS THE U.S. IS CURRENTLY INVOLVED IN, HIS SUPPORT FOR THE STATE OF ISRAEL, HIS SUPPORT FOR UKRAINE, AND HIS SUPPORT FOR THOSE WARS AT A TIME WHEN IN THE PAST COUPLE OF YEARS, THERE HAD BEEN PRESSURE ON REPUBLICANS NOT TO SUPPORT THE UKRAINIAN GOVERNMENT TO THE SAME EXTENT IT HAD BEEN SUPPORTED. CAROL: AT A LOT OF BIG ISSUES, AND YOU WONDER WHO SPEARHEADS THEM GOING FORWARD. NEVERTHELESS, PRESIDENT TRUMP AND VICE PRESIDENT JD VANCE AT THE WASHINGTON CATHEDRAL. WE WANT TO GET YOU TO SOME OTHER THINGS HAPPENING THIS TUESDAY, THE FED MEETING HAPPENING IN THE NATION'S CAPITAL. A DECISION EXPECTED TOMORROW. TREASURY YIELDS ALSO DOWN AFTER STRIKES STOPPED IN IRAN AND OIL PRICES ALSO DOWN. TIM: ON THE EQUITIES SIDE, WE ARE WATCHING WHAT'S GOING ON WITH APPLE. SHARES WERE HIGHER EARLIER, IN FACT, BECOMING THE SECOND COMPANY TO HIT THE $5 TRILLION MARK. THE KOREAN KOSPI DOWN MORE THAN 10% OVERNIGHT AND CONTINUED PRESSURE. KIND OF THE SAME STORY OVER AGAIN. CAROL: I DO FEEL THAT. WE WILL GET INTO THAT. WE WILL ALSO TALK ABOUT WHAT WE GOT ON THE TERMINAL, CITADEL SECURITIES TALKING ABOUT A FED RATE HIKE, UNEXPECTEDLY PERHAPS FROM AN FOMC TOMORROW. WE WILL ALSO TALK ABOUT BUILDING OUT THE SPACE INFRASTRUCTURE. GOT A GREAT CAST ON THAT. THEN A BIT OF A SPORTS CAST. THE WORLD CUP IS OVER, BUT FIFA IS THINKING ABOUT MONEY. TIM: AND IT IS REALLY CONTROVERSIAL. WE WILL SPEAK TO SOME FOLKS ABOUT THAT. CAROL: BEFORE WE CHECK ON MARKETS, SOMETHING WE WANT TO BRING TO YOUR ATTENTION, A NEW FEATURE EXCLUSIVELY FOR BLOOMBERG.COM SUBSCRIBERS AND TERMINAL CLIENTS. WE WOULD LOVE TO HAVE YOU PARTICIPATE IN OUR WALL-TO-WALL COVERAGE OF SOME BIG TECH EARNINGS. META PLATFORMS, QUALCOMM, AND MICROSOFT THAT WE ARE GETTING. ALL YOU HAVE TO DO IS SUBMIT QUESTIONS FOR OUR TEAM OF ANALYSTS AND EXPERTS TO ANSWER LIVE ON AIR. GO TO BLOOMBERG.COM/ASKRADIO. EXCLUSIVE TO BLOOMBERG.COM SUBSCRIBERS AND TERMINAL CLIENTS. AND THEN JUST LISTEN TO US. TIM: CHECK OUT BLOOMBERG RADIO. YOU CAN WATCH ON BLOOMBERG ORIGINALS. YOU CAN WATCH ON YOUTUBE. THAT STARTS AT 4:00 P.M. TOMORROW. CAROL: WE WANT YOU TO BE PART OF THE CONVERSATION SO WE ARE LOOKING FORWARD TO YOU SENDING IN QUESTIONS. LET'S GET TO THE MARKET TRADE ON THIS TUESDAY. A LOT GOING ON FOR THE WRAP UP OF WHAT YOU NEED TO KNOW. >> I THINK YOU GUYS CORRECTLY IDENTIFIED ALL FOUR MAJOR THEMES FOR MARKETS. THE SEMICONDUCTOR SELLOFF, THE PRICE OF OIL SLUMPING, AND ALSO TECH EARNINGS, AND THE FED THIS TIME TOMORROW WE'LL FIND OUT WHAT THEY DO AND WE WILL BE LOOKING FORWARD TO THE NEWS CONFERENCE, KEVIN WARSH'S NEWS CONFERENCE, HIS SECOND COMING UP. RIGHT TO THE NUMBERS, WE ARE LOOKING AT GAINS ON THE S&P 500 INDEX. AN INTERESTING DAY BECAUSE WE STARTED OUT WITH THE S&P DOWN 30 POINTS, DOWN .4%. RIGHT NOW LOOKING AT A GAIN OF .3%. THE S&P UP 21 AT 70 434. THE DOW JONES INDUSTRIAL AVERAGE UP 594 POINTS. SHERWIN-WILLIAMS LIFTING THE DOW TODAY. THE NASDAQ COMPOSITE INDEX DOWN 31, A DROP OF .1 PERCENT. WEAKNESS IN SEMIS. THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX DOWN NOW BY 4.4%. ALL OF THIS WITH THE VIX HOLDING ABOUT 18. THE TWO-YEAR 4.27%, THE 10-YEAR, FOUR POINT 6%, AND A 30-YEAR, 5.09%. SPOT GOLD DOWN 1.9%. CRUDE HOLDING BELOW $80. BARELY BRENT, 84 DOLLARS $.15, A DROP OF 4.8%. AMONG SOME OF THE CHIPMAKERS, MACRON DOWN 8.9%. INTEL DOWN 5.4%. AMG LOWER BUT SEVEN POINT 5%. NVIDIA BUCKING THE TREND, UP BY .3%. CAROL: THANK YOU SO MUCH, CHARLIE PELLETT. I THINK IT IS SAFE TO SAY THAT INVESTORS CARE ABOUT TO THE BIG THINGS, WHAT WE GET FROM THE FED TOMORROW AND ALSO THE AI TRADE, BUT WE WILL START WITH TOMORROW'S FED DECISION. TIM: SOME EXPECTATIONS THE FED WILL RAISE RATES THIS WEEK. TRADERS, STILL PRICING IN AN UNUSUALLY HIGH AMOUNT OF UNCERTAINTY ABOUT A POTENTIAL HIKE. CAROL: WE WILL SEE WHAT HAPPENS. 24 HOURS FROM NOW, WE WILL KNOW WHAT THE ECONOMY NEEDS OR DESERVES WHEN IT COMES TO FED ACTIONS. WE WANT TO BRING IN MICHAEL MCKEE, BLOOMBERG TELEVISION AND RADIO INTERNATIONAL CORRESPONDENT. HE IS IN THE WASHINGTON, D.C., BUREAU. TIM: HIS SECOND HOME. CAROL: IF YOU LIKE IT OR NOT, IT IS. HE WAS CONSUMER CONFIDENCE FELL IN JULY. LET'S START FIRST WITH HOW THE U.S. ECONOMY IS DOING. HOW IS IT? MIKE: THE U.S. ECONOMY IS DOING QUITE WELL, CONSIDERING EVERYTHING WE HAVE BEEN THROUGH WHEN YOU START ADDING UP THE SHOCKS TO THE ECONOMY. WE HAVE SEEN A GROWTH HANG IN THERE. IT IS A LITTLE LOWER THIS QUARTER, BUT IT HAS BEEN 2% OR A LITTLE BETTER FOR A WHILE. WE ARE LOOKING AT INFLATION THAT IN THE LAST MONTH CAME DOWN. WE CAN GET INTO THAT MORE IN TERMS OF WHAT THE FED WILL DO, BUT OVERALL, BUSINESS SPENDING IS STILL STRONG AND CONSUMER SPENDING IS HANGING IN THERE. WHEN YOU THINK ABOUT EVERYTHING THAT HAS HAPPENED OVER THE LAST COUPLE OF YEARS AND EVEN GO BACK TO COVID, IT'S AMAZING THAT THE U.S. ECONOMY IS AS DYNAMIC AS IT IS. TIM: WHY IS THAT? I WILL NOT SAY SO MANY THINGS DID NOT TURN OUT THE WAY WE THOUGHT THEY WOULD -- CAROL: PIXIE DUST. TIM: I DON'T KNOW, IS THAT WHAT IT IS? WHAT IS IT ABOUT THE U.S. ECONOMY THAT MAKES IT SO RESILIENT BACK IN MICHAEL: WE DON'T EXACTLY KNOW. I WAS SPEAKING WITH A FORMER ATLANTA PRESIDENT WHO SAYS THAT IS ONE OF THE THINGS THAT KEEPS HIM UP. HE WORRIES THAT CANNOT CONTINUE, BUT HE CANNOT FIGURE OUT WHY IT IS HAPPENING SO HE CANNOT FIGURE OUT WAYS IT WILL GO WRONG. AS WE SPEND A LOT OF MONEY ON BUILDING OUT AI, YOU WILL HAVE THAT BUSINESS SPENDING. THE QUESTION IS WHAT HAPPENS WHEN THE BUILDING IS DONE AND AI COMPANIES HAVE TO SHOW PROFITS? CAN THEY DO THAT? IF NOT, WHAT HAPPENS TO THE STOCK MARKET? THEN WHAT HAPPENS TO CONSUMER SPENDING IF STOCKS GO WAY DOWN? AND AT SOME POINT, DOES THE MORE -- DOES THE LORE START TO INFLUENCE CONSUMER SPENDING? CAROL: CITADEL EXPECTS THE FED TO RAISE RATES TOMORROW IN A SURPRISE MOVE, STRENGTHENING KEVIN WARSH'S CREDIBILITY IN THE BATTLE WITH INFLATION. HOW OFTEN DO NEW SHARE -- NEW CHAIRS WANT TO COME IN AND SHOW THAT THEY ARE IN CHARGE EARLY ON IN THEIR TENURE, AND IS IT IMPORTANT FOR THEM TO DO SOMETHING TO SAY, I'M IN CONTROL, I'VE GOT THIS KIND OF THING? MICHAEL: THERE'S A CERTAIN KIND OF IMPORTANCE TO MAKING THAT IMPRESSION. I DON'T THINK ANY OF THE PREVIOUS FED CHAIR'S WOULD SAY I CAME IN AND RAISE RATES BECAUSE IT WAS IMPORTANT TO SHOW THAT I HAVE CREDIBILITY, BUT IT IS A HISTORICAL FACT THAT PAUL VOLCKER RAISED RATES TWO MONTHS INTO HIS TERM. BEN BERNANKE AND JAY POWELL RAISED RATES A MONTH INTO THEIR TERM. ALAN GREENSPAN AS WELL. EXCEPT FOR JANET YELLEN, WHO INHERITED RATES ALREADY A ZERO -- AT ZERO, THERE HAS BEEN A TRADITION OF EARLY RATE MOVES BY FED CHAIRS. AS A MATTER OF FACT, THE STORY IS THAT WHEN ALAN GREENSPAN FIRST RAISED RATES AT HIS SECOND MEETING, PAUL VOLCKER SENT HIM A NOTE THAT SAID, CONGRATULATIONS, YOU ARE A REAL CENTRAL BANKER AND OUT. TIM: THE QUESTION IS -- DOES KEVIN WARSH BECOME A REAL CENTRAL BANKER TOMORROW? MICHAEL: IT'S A REALLY OPEN QUESTION. ALL MEETINGS ARE ALIVE AS ANY FED OFFICIAL WILL TELL YOU, BUT THIS ONE PERHAPS MORE THAN OTHERS BECAUSE THERE IS AN INFLATION PROBLEM OUT THERE AND WE DON'T KNOW WHERE WE ARE GOING WITH THIS. WHAT DOES THE FED DO -- LOOK THROUGH IT OR THINK THAT THIS COULD DEVOLVE INTO A FURTHER INFLATION PROBLEM? AT THE SAME TIME, YOU HAVE KEVIN WARSH WHO IS NEW ON THE JOB BUT HAS MADE IT CLEAR THAT INFLATION IS ENEMY NUMBER ONE AND NEEDS TO BE SLAIN. THERE'S ALSO AN ANGLE THAT SOME PEOPLE HAVE POINTED OUT THAT IF YOU RAISE THE SHORT RATE, THAT EASES SOME FEARS ABOUT INFLATION GETTING OUT OF CONTROL OR BEING AROUND FOR TOO LONG, AND LONG RATES COME DOWN, WHICH WOULD BRING MORTGAGE RATES DOWN AND THAT WAS IN THEORY MAKE THE PRESIDENT HAPPY AND TAKE THAT OFF THE TABLE. THERE ARE A LOT OF MOVING PARTS HERE. SOMEONE ASKED ME TODAY, HOLD OR HIKE? I SAID YES. CAROL: WELL DONE, AS ALWAYS. WE LOOK FORWARD TO YOUR COVERAGE TOMORROW ON THE FED DECISION. WE MENTIONED AT THE TOP A COUPLE OF THINGS CERTAINLY ON OUR MIND. WE HAVE BEEN WATCHING THE NASDAQ 100 TRADING THEIR CORRECTION AS THE SELLOFF IN SEMICONDUCTOR STOCKS TURNED A LITTLE UGLY WITH INVESTORS ONCE AGAIN QUESTIONING THE AMOUNT OF MONEY THAT BIG TECH IS SPENDING WHEN IT COMES TO AI. TIM: SHARES OF MICRON RIGHT NOW DOWN MORE THAN 9% JUST IN TODAY'S TRADE. SANDISK ALSO UNDER PRESSURE. I WANT TO BRING IN OUR THIRD ANCHOR AT "BUSINESSWEEK DAILY." CAROL: MY HUSBAND SAID YESTERDAY, WHERE'S MANDEEP? TIM: GOT A NOTE FROM TOM THORTON TODAY, WHO SAID, I COVERED MOST OF MY SEMI-SHORTS TODAY AS WELL AS TESLA. THE SHORTS ARE DOING PRETTY WELL IF THEY SHORT AT THE RIGHT TIME WHEN IT COMES TO SOME OF THESE MEMORY NAMES. MANDEEP: THEY ARE, BUT WHEN YOU LOOK AT THE INDEX, IT IS UP MORE THAN 30% IN THE LAST MONTH. THERE'S ALWAYS POINTS WHEN YOU WILL SEE SOME CONSOLIDATION, SOME SIDEWAYS MOVEMENT, AND FUNDAMENTALLY, WHEN YOU LOOK AT THE EARNINGS THAT HAVE COME SO FAR, AND WE WILL LEARN MORE THIS WEEK, ALPHABET POINTED TO THE FACT THAT THEY ARE RAISING THE CAPEX, SO IT IS A POSITIVE OVERALL FOR THE SEMICONDUCTOR INDEX. EVERYONE HAS TALKED ABOUT HOW THERE ARE SUPPLY CONSTRAINTS. TO ME, NOTHING HAS CHANGED FUNDAMENTALLY, BUT THE MARKET IS ALWAYS LOOKING AHEAD, SNIFFING FOR WHAT COULD GO WRONG DOWN THE LINE, AND THAT'S WHAT WE SEE. CAROL: PREPPING FOR THIS, WE WOULD LIKE, HE'S GOING TO BE LIKE, I'VE ANSWERED THIS QUESTION A MILLION TIMES. TIM: MAYBE TOMORROW YOU WILL ANSWER IT, TOO. CAROL: WHAT WOULD POSSIBLY SAY TO YOU NOW THERE IS A PROBLEM? MANDEEP: EVEN IF THE COMPANIES THAT ARE REPORTING DO NOT RAISE THEIR CAPEX, TO ME, THAT IS A NEGATIVE. BECAUSE OF THE MEMORY PRICE INCREASES, EVERY COMPANY HAS TO RAISE THEIR CAPEX TARGETS JUST TO ACCOUNT FOR HOW MUCH THE MEMORY PRICES HAVE GONE UP. THEY ARE NOT RAISING THEIR CAPEX, THAT IS A SIGN THEY ARE CUTTING SOMEWHERE ELSE. THAT IN ITSELF IS A NEGATIVE INDICATOR THAT THEY ARE HOLDING THEMSELVES BACK. WHY IS THAT? IS IT BECAUSE THEY ARE NOT ABLE TO TRADE THE LATEST MODEL OR THERE IS SOMETHING MORE TO IT? TIM: WHICH COMPANY DO YOU THINK WILL BE FIRST TO HOLD OR CUT? MANDEEP: META TO ME LOOKS LIKE THEY DO NOT STILL HAVE A CLOUD MODEL, BUT EXPECTATIONS ARE THERE GOING THAT ROUTE. IF THEY COME OUT AND SAY THEY ALREADY HAVE A CUSTOMER, THEY ARE LOOKING FOR ANTHROPIC TO USE THEIR COMPUTER, THAT IT IS -- THAT IS A POSITIVE SIGN. ALSO, THERE WILL BE MORE DETAILS AROUND THEIR OWN MODEL, THE MUS MODEL -- WITH ALL THIS NEWS THIS WEEK, IT FEELS LIKE THERE IS A LOT OF MOMENTUM THAT SUDDENLY IS BEHIND THE CHINESE OPEN SOURCE MODELS. WHAT THAT WILL MEAN FOR THE OVERALL ECOSYSTEM WE STILL HAVE TO DISCERN. CAROL: THE AI CIRCULAR FINANCING FEARS, IS THAT LEGIT? SHOULD WE BE CONCERNED ABOUT THAT EVERY TIME WE BRING UP THAT DIAGRAM? MANDEEP: ABSOLUTELY. THERE'S NO DENYING THE FACT THAT NVIDIA WITH THEIR BIG BALANCE SHEET IS BACKSTOPPING A LOT OF THIS BUILDOUT. OPENAI DOES NOT HAVE A BALANCE SHEET LIKE THEY DO, SO THEY NEED HYPERSCALE SUPPORT OR THEY NEED NVIDIA'S SUPPORT TO SAY EVEN THOUGH YOU ARE BUYING CHIPS FROM US, I'M BACKSTOPPING THE USE. IF NOBODY IS THERE, I’M GOING TO BACKSTOP IT. CAROL: WHY DON’T THEY JUST TAP INVESTMENT MARKETS TO DO THAT? MANDEEP: THE COST OF CAPITAL FOR OPENAI WOULD BE WAY MORE THAN WHAT GOOGLE IS PAYING, WHICH IS MORE LIKE 10%. AND THE RETURN GOOGLE HAS TO EARN IS MORE LIKE 20% TO SAY IT’S A GOOD INVESTMENT. FOR OPENAI, THE BAR WILL BE MUCH HIGHER, SO THAT’S WHY THE COST OF CAPITAL MATTERS HERE. CAROL: OK, INTERESTING. TIM: I’M LOOKING AT SHARES OF MICRON, DOWN ABOUT 30% GOING BACK TO JUNE 25. CAROL: IN A MONTH. TIM: OVER THAT TIME, IT’S DOWN. CAROL: HOW MUCH IS IT UP THIS YEAR? TIM: THIS YEAR, UP 185%. BUT THE THING IS, IT’S STARTING TO LOOK LIKE THE SAME SHAPE THAT WE SAW PRE-COVID, GOING INTO COVID, AND THEN POST-COVID, WHERE THINGS REVERT TO NORMAL. MANDEEP: THE BIG RISK FACTOR, WITH ALL THESE INVESTMENTS, THERE’S ALWAYS ONE BIG RISK FACTOR. IN THE CASE OF APPLE, IT HAS SO MUCH WEIGHT WHEN IT COMES TO CONSUMER DEVICES. IF THEY’RE ABLE TO QUALIFY ONE OF THE CHINESE PROCEDURES, THEN THAT’S A BIG THREAT TO ALL THESE MEMORY PLAYERS, BECAUSE NOT ONLY YOU’VE GOT A PROVIDER AND THEN YOU’VE GOT THE LARGEST CONSUMER HARDWARE COMPANY LOOKING TO USE THAT. TIM: IS THAT A REAL THREAT TO THE BIG THREE? MANDEEP: I THINK SO. BUT WHAT WE HAVE LEARNED SO FAR IS BECAUSE THERE IS SUCH A BIG SUPPLY-DEMAND MISMATCH, THESE COMPANIES COULD ALLOCATE A LOT MORE OF THEIR WORDS THAN THE CONVENTIONAL DRAM. TIM: HIGH PERFORMANCE COMPUTING. MANDEEP: AND HIGH BANDWIDTH MEMORY, YEAH. BUT DRAM IS WHERE THEY’RE GETTING ALL THEIR PRICING LIFT. TIM: WHAT DOES THAT MEAN FOR THE CONSUMER SIDE OF THINGS? APPLE SAYING A FEW MONTHS AGO THAT IT’S RAISING PRICES ON THIS STUFF. THAT’S HERE TO STAY. MANDEEP: THAT IS HERE TO STAY, AS LONG AS THEY’RE RELYING ON A MICRON AND SK HYNIX OR DRAM. REMEMBER, APPLE DOESN’T NEED IT RIGHT NOW. THEY’RE NOT BUILDING DATA CENTERS. THEY NEED MEMORY CHIPS FOR THEIR SMARTPHONES, AND THEY JUST NEED THE DRAM. SO DRAM IS WHAT HAS GONE UP IN PRICES, PARTLY BECAUSE OF ALL THE WAFERS THAT ARE NEEDED FOR HBM. SO THERE ARE A LOT OF MOVING PARTS TO THIS, BUT CXMT IS A PLAYER THAT SELLS DRAM. THE MODIFIESED MEMORY CHIPS. CAROL: WE’VE ONLY GOT 20 SECONDS, BUT SHOULD WE BE WATCHING WHAT CHINA IS DOING? MANDEEP: ABSOLUTELY. ON THE OPEN WEIGHT MODEL SIDE, EVERYONE WROTE THEM OFF, AND SUDDENLY THEY’VE GOT THE SUPPORT OF HUNDRED-PLUS COMPANIES HERE IN THE U.S. SAYING WE WANT TO SUPPORT CHINESE OPEN MODELS. CAROL: WILD, WILD. THANK YOU FOR COMING BACK. I KNOW WE ASK THE SAME QUESTIONS, BUT WE NEED YOU. TIM: WE’LL SEE YOU TOMORROW. CAROL: WE WILL, WE HOPEMENT MANDEEP SINGH OF BLOOMBERG INTELLIGENCE. CHARLIE: WE DO CHECK MARKETS I’M DAY LONG HERE AT BLOOMBERG. THE DOW, S&P, THEY ARE BOTH HIGHER. WE’VE GOT NASDAQ AND THE NASDAQ 100 INDEX, WE’LL THROW IN THE RUSSELL 2000, ALL IN THE RED. A SELLOFF IN SEMIS IS CONTINUING WITH THE SOX, THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX, DOWN BY 4.6%. THE NASDAQ 100 INDEX DOWN .9%. NASDAQ COMPOSITE DOWN .2%. BUT THE S&P 500 INDEX REVERSING EARLIER LOSSES, HOLDING ON TO A 17-POINT GAIN NOW, UP BY .2%. DOW INDUSTRIALS UP 555, UP BY 1.1%. SHERWIN WILLIAMS LEADING THE DOW HIGHER. THE BLOOMBERG MAG 7 INDEX UP BY .8%, JUST AHEAD OF EARNINGS FROM FOUR OF THE SEVEN MEMBERS COMING UP TOMORROW AND THURSDAY. THE V.I.X. ABOVE 18 WITH A TWO-YEAR YIELDING 4.27%. THE 10-YEAR, 4.60%. AND YOUR 30-YEAR AT 5.09%. GOLD AT 4,028 AN OUNCE. SPOT GOLD DOWN 1.2%. WEST TEXAS INTERMEDIATE CRUDE SLUMPING 4.4%. BARREL OF BRENT, 83.89. BRENT CRUDE DOWN BY 5%. SPACEX SHARES BOUNCING BACK TODAY AFTER TEMPORARILY RAISING A FIFTH OF THEIR VALUE FROM THE RECORD-SETTING DEBUT OF ELON MUSK’S COMPANY. SPACEX SHARES RIGHT NOW, YOU’LL RECALL, THEY DID GO PUBLIC AT 135. SPACEX SHARES NOW AT $116. SPACEX TODAY UP BY 2.8%. RECAPPING, S&P 500 INDEX UP 19, A GAIN OF .3%. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCASTS. I’M CHARLIE PELLETT. TIM AND CAROL, THAT’S A BLOOMBERG BUSINESS FLASH. CAROL: CHARLIE, APPRECIATE IT. FOLKS, WE’VE BEEN WATCHING SHARES OF ROCKET COMPANIES. THEY’VE BEEN UNDER PRESSURE, NAMES INCLUDING INTUITIVE MACHINES, ROCKET LABS, AND RED WIRE AMONG THOSE LOSING GROUND TODAY. THIS IS HAPPENING AS ELON MUSK’S SPACEX SHARES HAVE DROPPED 20% BELOW THEIR INITIAL PUBLIC OFFERING PRICE OF $135 A SHARE. SO ERASING ROUGHLY 1/5 OF THEIR VALUE. FOR THOSE WATCHING ON YOUTUBE AND TV AND BLOOMBERG ORIGINALS, YOU CAN SEE JUST AFTER THE FIRST COUPLE OF DAYS OF TRADING, WHERE THE STOCK SHOT UP. WE HAVE BEEN IS SHELY IN A DOWNWARD MOVE HERE. SPACEX SHARES I SHOULD MENTION BOUNCING AROUND TODAY, THEY’RE UP A LITTLE BIT MORE THAN 2%, BUT THEY WERE DOWN EARLIER IN THE SESSION. TIM: JOINING US ON SET TO TALK ABOUT THIS, THE C.E.O. OF NEBX, THE MARKET INFRASTRUCTURE PLATFORM FOR THE GLOBAL SPACE ECONOMY. GOOD TO HAVE YOU BACK ON THE PROGRAM. LAST TIME YOU WERE WITH US, YOU WERE C.E.O. OF AXIOM SPACE, SO A JOB SWITCH. BUT YOU’RE STAYING IN THE SPACE SPACE, JUST MAKING SURE. >> SPACE SPACE, YOU GOT ME. TIM: OTHER TOP-TIER VENTURE FUNDS INCLUDING A BANKING RELATIONSHIP WITH J.P. MORGAN. WHAT ARE YOU SETTING OUT TODAY THAT YOU WEREN’T ABLE TO DO AT AXIOM? >> THANK YOU FOR HAVING ME BACK. WE MET A FEW TIMES, ALWAYS LOVED OUR CONVERSATIONS. I FEEL LIKE I REMEMBER VIVIDLY YOUR STORY ABOUT YOUR FATHER, THE GENERAL CONNECTION WE ALL HAVE FOR SPACE. REALLY COOL TO BE HEARING YOU TALK ABOUT VARIOUS SPACE STOCKS, SPEAKING EING LIKE IT’S A REAL ECONOMY. IT’S NOT A REAL ECONOMY YET OR A REAL ASSET CLASS YET. TIM: WHY NOT? >> SPACEX, THE LARGEST I.P.O., VERY EXCITING, DOING WHAT PUBLIC STOCKS DO, AND THIEF CREATED A TON OF VALUE. THE QUESTION I WOULD ASK IS WHY IS THERE NO REMOTELY CLOSE SECOND PLACE? EVERY OTHER SECTOR, I KNOW THE PREVIOUS GUEST WAS TALKING ABOUT A.I., RIGHT? 20 YEARS AGO, IT MIGHT HAVE BEEN SEARCH OR CLOUD OR MOBILE. IN EVERY MAJOR REVOLUTION WHERE THERE’S HUGE VALUE CREATED, THERE’S MULTIPLE MASSIVE WINNERS, RIGHT? LOOK AT THE BIG FOUR, YOU KNOW, WE USED TO TALK ABOUT IT A WHILE AGO, THERE’S ALWAYS OTHER ONES. TIM: BUT LAUNCHING A ROCKET AND THEN LANDING IT ON A BARGE, WHICH, YOU KNOW, SEVEN YEARS AGO WAS A BIG DEAL, BUT NOWADAYS IT HAPPENS SO FREQUENTLY, WE DON’T EVEN NECESSARILY SHOW IT. THAT’S A PRETTY BIG MOAT. >> ABSOLUTELY. BUT AGAIN, WHY IS THERE ONLY ONE THAT’S BEEN DOING IT? I THINK THIS IS WHERE NEX X COMES IN. WE A BELIEF THIS IS A MAJOR TRANSFORMATION FOR INDUSTRY AND CIVILIZATION. WE’RE BUILDING WHAT WE CALL THE COMMERCIAL RAILS TO GO ON THE PHYSICAL RAILS, THE PHYSICAL RAILS BEING THE ROCKETS THAT GO UP AND DOWN. WE’VE SEEN THIS OVER AND OVER AGAIN, PARTICULARLY IN NEW YORK QUITE A BIT. WHEN THE RAILROADS WERE BUILT, THREE GENTLEMEN IN BUFFALO, NEW YORK, CREATED AMERICAN EXPRESS TO GUARANTEE GOLD. WHEN THEY REALIZED THEY’RE GUARANTEEING IT FROM ROBBERS AND GANGS LIKE JESSE JAMES, THEY REALIZED THEY DON’T ACTUALLY HAVE TO SEND THE GOAL, AND THAT WAS AMERICAN EXPRESS IN TRAVELERS CHECKS. J.P. MORGAN, 1871, STANDARDIZES THE SHIPPING CONTAINERS, THE FIRST LETTERS OF CREDIT BETWEEN GLOBAL BANKS, GUARANTEEING TRADE. SO WE’VE SEEN THIS TIME AND TIME AGAIN, BUT IN SPACE, EVERYONE HAS BEEN FOCUSED ON THE HARDWARE, THE PHYSICAL INFRASTRUCTURE. WHEN WE TALK ABOUT INFRASTRUCTURE, A LAUNCH A DAY IS INFRASTRUCTURE. LAUNCHING GIANT ROCKETS AND LANDING ON A BARGE EXACTLY ON THEIR X LOGO, THAT’S INCREDIBLE INFRASTRUCTURE. TENS OF THOUSANDS OF SATELLITES IN ORBIT, THAT’S INFRASTRUCTURE. EVERY OTHER COMPANY IS PUTTING UP DEMOS, SO WE FEEL THERE’S THIS WIDE-OPEN SPACE RIGHT NOW FOR A COMPANY TO BRING THE REST OF THE ECONOMY ALONG. ONCE THOSE RAILS ARE SET GOING UP AND DOWN, WHAT’S THE NEXT TRAVELERS CHECK? WHAT’S THE NEXT SHIPPING CONTAINER? WHAT’S THE NEXT TRADING PLATFORM THAT ALLOWS AN ECONOMY TO SCALE? CAROL: THE OTHER THING I WOULD SAY WITH SPACE IS, YOU WANT TO MAKE SURE THERE AREN’T PROBLEMS, IT’S COMPLICATED, IT’S DIFFICULT. I ALWAYS THINK ABOUT MY DAD. HE WOULD HAVE BEEN BLOWN AWAY BY THE IDEA THAT YOU COULD ACTUALLY BRING A ROCKET BACK AND MAKE IT LAND, BECAUSE THAT’S NOT THE CASE WHEN HE WAS DOING IT. SO THERE ARE REGULATIONS TO MAKE SURE THINGS ARE SAFE AND SECURE. LIVES CERTAINLY AT STAKE IN THIS CONCEPT OF BUILDING OUT SPACE AS A PLACE FOR PEOPLE TO LIVE OR DATA CENTERS TO EXIST. WHAT DOES IT TAKE IN TERMS OF INTERNATIONAL COOPERATION AMONG ENTITIES, COMPANIES, AND THEN THE FINANCIAL ENTITIES? >> YEAH, AND AGAIN, WE’VE SEEN THIS IN OTHER AREAS, AVIATION FROM THE WRIGHT BROTHERS GOING FROM LINDBERGH TO PARIS. WE SAW WITHIN A FEW YEARS AIR SHOWS EVERYWHERE. THE WARS HAVING MULTIPLE AIR FORCES, AND WITHIN A RUN YEARS, THAT COMPLETELY CHANGED OUR LIFE. THE INTERESTING THING ABOUT SPACE, AND I DISCOVERED THIS IN MY PREVIOUS ROLE, I’M NEW TO THE GOOGLE, IT WAS MY CHILDHOOD DREAM TO SEND ASTRAZENECA THOUGHTS TO SPACE. I TOOK MY SHOT, SENT 16 ASTRONAUTS TO SPACE, 12 SOVEREIGN NATIONS, BILLIONS OF DOLLARS OF REVENUE. AGAIN, ALL AS AN OUTSIDER. AS SPECIAL AS I BELIEVE I AM, AS SPECIAL AS MY PARENTS THINK IT IS. THERE ARE EIGHT BILLION SPECIAL PEOPLE IN THE WORLD, WHY IS NOBODY ELSE CRACKING THIS CODE? I THINK WE UNCOVERED RIGHT UNDER OUR NOSE A GOLD MINE, WHICH IS LITERALLY THE ONLY INDUSTRY LEFT ON THE PLANET THAT HASN’T BEEN TOUCHED BY MODERN FINANCE. AND THERE’S A GEOPOLITICAL HISTORY BEHIND THIS. BACK IN YOUR FATHER’S TIME, THE SPACE RACE, JOHN F. CONDITION DE, WE ABOUT TO THE BOND, NOT BECAUSE THEY’RE EASY, BUT THEY’RE HARD. I THINK WE ALL GET GOOSE BUMPS. THAT’S THE OTHER ENGINE STORY, SPACE AND THE UNITED STATES. AT THAT SAME TIME, SCHOOLS WERE TRAINED TO GET UNDER THEIR DESK. IT WAS AN ARMED RACE, AND EVERYTHING CAME OUT OF THAT AND ORIGINALLY THE FIRST COLLABORATION BETWEEN THOSE TWO SPACE SUPERSTARS WAS WHAT EVENTUALLY BECAME THE INTERNATIONAL SPACE STATION. AND TO REMOVE COMPLEXITY AND POLITICS FROM IT, THEY DECIDED NO MONEY WILL EXCHANGE HANDS, AND IT WORKED. AND IT WORKED. NOW WITH A COMPANY LIKE SPACEX AND STARLINK AND STARSHIP, WE NEED FINANCIAL INFRASTRUCTURE TO MODERNIZE THE INDUSTRY. CAROL: WE ONLY HAVE FOUR MINUTES OR SO LEFT, SO I WANT TO GET TO WHAT YOU PLAN TO DO IN THE DEALS AS THIS PLATFORM GETS UP AND RUNNING. I ALWAYS BELIEVE THAT IF THERE IS MONEY TO BE MADE, MONEY WILL GO THERE. YOU STARTED OFF SAYING, WHY ARE THERE NOT LARGER COMPETITORS TO SPACEX? IF THE MONEY HAS NOT GONE THERE ALREADY, MAYBE IT HAS NOT GONE THERE FOR GOOD REASONING, AND MAYBE YOU NEED TO HAVE IT CONCENTRATED IN ONE HANDS OR GOVERNMENT STILL CONTROLLING A LOT OF STUFF. >> I THINK YOU NAILED IT. I DON'T THINK IT IS CAUSE AND EFFECT. IF YOU FOLLOW THE DOLLARS, IT IS A MASSIVE MARKET TODAY. LAST TIME I WAS HERE, WE SPOKE ABOUT PHARMACEUTICALS AND SPACE MANUFACTURING. THAT IS VISION. WE CAN LOOK AT EXACT NUMBERS IN 2026. WE CAN FOLLOW THE DOLLARS, WHICH IS WHAT WE ALL SHOULD BE DOING, AND EVERY DOLLAR GOES BACK TO MAKE GOVERNMENT BUDGET. THE BEAUTY OF GOVERNMENT BUDGETS IS THEY WERE APPROPRIATED FIVE YEARS AGO. THE BEAUTY OF GOVERNMENT BUDGETS IS IT IS PUBLICLY AVAILABLE DATA. THE EXACT DOLLAR AMOUNT THAT WAS TRANSACTED IN 2026 IS $137.4 BILLION, SO WE KNOW THAT THAT IS A MASSIVE MARKET NOW. SO THERE IS NO GUESSWORK THERE. IT IS COMING FROM GOVERNMENT BUDGETS. THE REASON IT HAS NOT ACCELERATED IS BECAUSE IT HAS BEEN A SOVEREIGN TO SOVEREIGN BUSINESS, AND NOW WITH COMMERCIAL SUPPLY, IT IS CHANGING. TIM: WHO ARE YOUR FIRST CUSTOMERS GOING TO BE? >> WE ARE A FINANCIAL EXCHANGE CROSS-BORDER FOR SPACE TRANSACTIONS. WHEN GOVERNMENTS NEED TO BUT COMMERCIAL SUPPLY FROM ANOTHER COUNTRY, IT GETS COMPLICATED, AND BASICALLY, THAT IS EVERY SINGLE SPACE TRANSACTION. IMPORT/EXPORT. TAXES, TARIFFS, POLITICS, POLICY , PROCUREMENT RULES. FOR MANY EUROPEAN COUNTRIES, MONEY CANNOT ACTUALLY LEAVE THEIR BORDERS. THEY INVOKE WHAT THEY CALL THE BARTER SYSTEM -- THERE'S NO REAL BARTER SYSTEM, BUT IT IS SOME SORT OF VALUE IN KIND BILATERAL TRADE THAT AGENCIES WILL DO. THERE IS NO NEUTRAL CENTRAL CLEARING SETTLEMENT SYSTEM FOR THESE DEALS, WHICH FORCES EVERY DEAL TO BE BILATERAL AND SEQUENTIAL. THERE IS NO PARALLEL PROCESSING. WHEN COMPANIES ARE GOING AFTER GOVERNMENT CONTRACTS, THEY HAVE IN THE CONTRACT, GET THEIR PAYMENT, HIT THEIR NEXT MILESTONE -- CAROL: HOW DO YOU TAKE THE POLITICS OUT IN A WORLD WHERE GEOPOLITICS DOES DETERMINE WHO YOU SELL WHAT TO, AND IT IS HEIGHTENED IN THE SENSITIVITY. FORGIVE US, WE ONLY HAVE 30 SECONDS. >> I CAN ANSWER IN 15 SECONDS. WHEN I WORKED AT GOOGLE, I HAVE NEVER SPOKEN TO A WORLD LEADER BEFORE. IN A SPACE, YOU DEAL WITH PRESIDENTS AND RUN MINISTERS. I DON'T EVEN PRETEND TO SAY I UNDERSTAND POLITICS, BUT WE HAVE THE MOST MISSION VEHICLE AS HUMANS TO SOLVE THAT IN MARKETS. SO, CAPITAL MARKETS. YOU MENTIONED THE RELATIONSHIP WITH J.P. MORGAN. IN THIS TIME WARP THAT HAS BECOME SPACE, THE SPACE BUSINESS IS STUCK IN 1969. THIS BUILDING IS A COUPLE OF BILLION DOLLARS. THE BANKERS WHO FINANCE THIS GET PAID IN TRANSACTION FEES, ASSETS UNDER MANAGEMENT. YOU CANNOT GET THE DAY -- THE TIME OF DAY OF ANY WALL STREET BANKER TO FINANCE IT. DOING IT AT SCALE, BRINGING CAPITAL MARKETS IN MAKES IT A MONEY PROBLEM, NOT A POLITICS PROBLEM. CAROL: GLAD TO HAVE YOU BACK. COME BACK SOONER. LET'S NOT WAIT A YEAR OR SO. AS WE HAD TO BREAK, WE WANT TO TAKE YOU TO THE NATION'S CAPITAL, WASHINGTON, D.C., AND THE NATIONAL CATHEDRAL. PRESIDENT TRUMP CURRENTLY GIVING THE EULOGY FOR SENATOR LINDSEY GRAHAM. THIS SERVICE AND FUNERAL BEING HEARD. AS WE GOT A BREAK, YOU CAN FOLLOW THIS, JUST HAD TO LIVE GO -- JUST HEAD TO LIVE GO. THIS IS BLOOMBERG. CHARLIE: IT IS TO: 40 ON WALL STREET. WE DO CHECK MARKETS ALL DAY LONG. STOCKS ARE HIGHER, OIL IS MOVING LOWER, AND CHIPS ARE SELLING OFF . THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX NOW DOWN 4.6%. THE NASDAQ 100 INDEX DOWN .9%. THE NASDAQ COMPOSITE INDEX DOWN .2%. S&P KEEPING IT ALL IN CONTEXT, UP .2%, AND THE DOW IS UP 560 POINTS, A GAIN OF 1.1%. DOW INDUSTRIALS GETTING A LIFT FROM EARNINGS FROM SHERWIN-WILLIAMS PEER THE BLOOMBERG MAG 7 INDEX UP .6%. WE WILL HEAR FROM FOUR OUT OF THE SEVEN MEMBERS IN THE NEXT TWO DAYS. THE TWO-YEAR YIELDING 4.27% WHILE THE 10-YEAR YIELDING 4.6 0%. SPOT GOLD DOWN $52 AN OUNCE. THE PRECIOUS METAL DOWN 1.3 PERCENT. WEST TEXAS INTERMEDIATE CRUDE HOLDING BELOW $80. IT IS DOWN 4.1%. EARNINGS NEWS, COCA-COLA HAS RAISED ITS FULL YEAR OUTLOOK, BOLSTERED BY DEMAND LAST QUARTER WHILE IT SERVED AS A MAJOR SPONSOR FOR THE FIFA WORLD CUP. WE'RE LOOKING AT COCA-COLA SHARES ADVANCING BY FOUR POINT 4% NOW. ARRIVAL PEPSICO IS TRADING HIGHER AS WELL, UP BY ONE .8%. UNITED PARCEL SERVICE BOOSTED SALES GUIDANCE FOR THE YEAR TO ABOUT 91.2 BILLION DOLLARS, UP FROM A PRIOR FORECAST OF $89.7 BILLION. FOR ON DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCASTS. CAROL: THE FANS ARE BARELY BACK HOME. SOME OF THEM ARE STILL PLAYING AROUND IN THESE GREAT CITIES. TIM: TIM BURCHETT IS STILL SELLING. MY DAUGHTER IS WEARING ARGENTINA TODAY. CAROL: THE WORLD CUP IS DEFINITELY STILL A NEWSMAKER, NO DOUBT ABOUT IT. CHARLIE TALKED ABOUT COCA-COLA BOLSTERING DEMAND LAST QUARTER WHILE IT SERVED AS A MAJOR SPONSOR OF THE FIFA WORLD CUP. TIM AND THERE'S THIS, FIFA PLANNING TO RAISE AS MUCH AS $1.2 BILLION FROM FOREIGN INVESTORS AS IT OPENS ITSELF TO OUTSIDE INVESTMENT. I DID NOT EVEN KNOW THAT ONE COULD PERHAPS INVEST IN FOOTBALL'S GOVERNING BODY. CAROL: ARE YOU GOING TO SELL YOUR CRYPTO AND GO IN DEBT? TIM: I'M STAYING RIGHT HERE. CAROL: BLOOMBERG NEWS SPORTS BUSINESS REPORTER JOINS US NOW. SHE IS COHOST OF THE BUSINESS OF SPORTS PODCAST. SHE IS HERE IN STUDIO, AND ALSO WITH US IS BRENDA WILLIAMS, ANOTHER COHOST OF THE BUSINESS OF SPORTS PODCAST. THANK YOU SO MUCH. RANDALL, YOU'RE IN D.C.. WE WILL GET TO THAT IN A MOMENT, BUT I WANT TO GET TO WHAT IS GOING ON HERE. FIFA PITCHING TO OUTSIDE INVESTORS. I THINK WE JUST KIND OF ASSUMED OUTSIDE INVEST -- OUTSIDE INVESTORS WERE INVOLVED. TIM: I THOUGHT IT WAS THE OPPOSITE. I THOUGHT IT WAS A GOVERNING BODY SUPPORTED BY ITS MEMBERS. >> THAT IS EXACTLY WHAT FIFA IS SUPPOSED TO BE. IT IS A NONPROFIT, A GOVERNING BODY. THEY ARE SUPPOSED TO SUPPORT THEIR 211 MEMBERS. CAROL: I GUESS I'M USED TO AMERICANIZED SPORTS. >> THAT'S EXACTLY WHAT PLAYS INTO IT. THEY JUST CUT THE WORLD CUP IN THE U.S.. GIANNI INFANTINO IS A CLOSE FRIEND TO TRUMP. ONE OF THE OTHER INVESTORS IS CLOSELY RELATED TO THE TRUMP ADMINISTRATION IN A WAY. CAROL: HE IS THE BROTHER-IN-LAW -- HE'S THE BROTHER OF THE SON-IN-LAW OF THE PRESIDENT. >> RIGHT. THEY HAVE THIS IDEA TO -- THIS HAD BEEN IN THE WORKS A LITTLE BIT, BUT THEY HAD THIS IDEA TO HAVE A FOUR-PROFIT -- FOR-PROFIT PART. CAROL: MONEY IN SPORTS? HOW COULD THAT HAPPEN. TIM: IT DOES SEEM STRANGE THAT YOU WOULD HAVE OUTSIDE INVESTMENT COMING INTO A GOVERNING BODY, ESPECIALLY WHEN THERE ARE SOME ASTERISKS AROUND WHAT YOU CAN DO WITH THAT STEAK OF FIFA. >> EXACTLY. WHAT >> EXACTLY. IF THERE IS A NONPROFIT BODY, HIGHWAY DO THEY COINCIDE WITH EACH OTHER? WHO’S GETTING PAID? WE DON’T REALLY UNDERSTAND AS FAR AS WHERE IS THIS MONEY GOING TO GO? A LOT OF TIMES PRIVATE EQUITY AND VENTURE FIRMS AND FUNDS ARE INVESTING INTO TEAMS, THEY’RE DOING IT FOR A PURPOSE. THEY’RE DOING IT TO HELP WITH STADIUM ISSUES. THEY’RE DOING IT TO HELP WHEN OWNERS HAVE BILLIONAIRES AND TAXES AND DIFFERENT THINGS LIKE THAT. THEY’RE HELPING WITH THINGS THAT ARE ALLEVIATING STRESS FOR BILLIONAIRES. THIS IS QUESTION MARK, QUESTION MARK, QUESTION MARK, WHY IS A NONPROFIT RAISING BILLIONS OF DOLLARS? CAROL: WHAT DOES FIFA SAY, RANDALL? RANDALL: FIFA WILL TELL YOU THIS IS FOR THE GOOD OF THE SPORT, ENHANCE FOOTBALL AROUND THE GLOBE, AND THEY’RE LOOKING FORWARD TO THE 2027 WOMEN’S WORLD CUP AND THE 2030 MEN’S WORLD CUP. TIM: UEFA IS NOT SO HAPPY ABOUT THIS, VANESSA. GILES TURNER WRITING ON THE BLOOMBERG TERMINAL JUST IN THE LAST 20 MINUTES OR SO THAT UEFA IS CONSIDERING A BOYCOTT OF FIFA EVENTS, INCLUDING THE WORLD CUP AND THE CLUB WORLD CUP IN RESPONSE TO FIFA’S PROPOSALS TO SEEK PRIVATE INVESTMENT. DO YOU THINK, VANESSA, THIS COULD BE THE TYPE OF THING THAT DOESN’T HAPPEN AS A RESULT OF PUSHBACK? VANESSA: I THINK WE HAVE SEEN PUSHBACK LIKE THIS BEFORE IN CERTAIN THINGS, AND FIFA HAS PROPOSED IDEAS LIKE THIS, BUT NOT THIS EXACT IDEA BEFORE, BUT THEY HAVE PROPOSED THINGS BEFORE THAT THE GOVERNING BODIES HAVE SAID NO TO. 211 MEMBER ASSOCIATIONS HAVE TO SAY YES FOR THIS FORD TO HAPPEN, AND ALL OF THE OTHER ENTITIES LIKE UEFA AND CONCACAF WOULD PROBABLY NEED TO BE ON BOARD. THEY’RE NOT NECESSARILY THE MEMBERS, SO IT’S DIFFERENT. BUT I THINK THAT UEFA’S STRONG FEELINGS ABOUT IT COULD POTENTIALLY CAUSE SOME ISSUES. TIM: EUROPEAN FOOTBALL BODY. VANESSA: EUROPEAN FOOTBALL ASSOCIATION, RIGHT. THEY SAID THIS ABSOLUTELY CROSSES THE LINE. NO FOOTBALL GOVERNING BODY SHOULD BE DOING THIS. AND WE’LL SEE WHERE IT LIES, BUT I THINK THAT FIFA, THEY’RE THE ONES WHO CAME OUT WITH THIS STATEMENT, AND THEY’RE CLEARLY VERY FAR ALONG. CAROL: RANDALL, COME ON IN. RANDALL: I JUST ADDED, YOU HAVE TO REMEMBER THE MEMBERS THAT ARE IN EUROPE. IT’S NOT JUST ANYBODY. IT’S FRANCE, IT’S ENGLAND, IT’S PORTUGAL, IT’S ALL OF THOSE COUNTRIES THAT ARE CONSIDERED SUPERPOWERS AND HAVE SOME OF THE MOST POPULAR PLAYERS IN THE WORLD. THIS IS A COLD WAR BREWING. AND WE’RE GOING TO FIND OUT IN MANY MONTHS, MAYBE YEARS TO COME IF IT’S GOING TO BOIL OVER, AND WHAT IS THE RESULT? WE HAVEN’T SEEN ANYTHING QUITE LIKE THIS IN THE GLOBAL SPORT OF FOOTBALL, PROBABLY SINCE THE SUPER LEAGUE, WHICH WAS GOING TO COMBINE A BUNCH OF CLUBS AROUND THE WORLD AND TRY TO, YOU KNOW, MAKE THE COMPETITION AS HIGH AS IT POSSIBLY COULD BE, AND THAT EVIDENTLY WAS GONE AWAY WITH. SO THIS IS SOMETHING SIMILAR, BUT AT A HIGHER LEVEL. IMAGINE THE JUSTICE LEAGUE VERSUS THE AVENGERS VERSUS, YOU THROW ANOTHER TEAM IN THERE YOU ALL LIKE AND THIS IS FOOTBALL. CAROL: FIFA FORWARD ENTERPRISE WILL REMAIN UNDER ITS CONTROL, INVESTORS PERMITTED ONLY MINORITY STAKES. IT COULD SUBSTANTIALLY INCREASE DEVELOPMENT FUNDING FOR ITS 211-MEMBER ASSOCIATION, SUPPORTING INFRASTRUCTURE, GRASS ROOTS PROGRAMS, AND WEAPONS’ PROGRAMS. DO THEY NEED THE MONEY? VANESSA: THEY JUST MADE $15 BILLION FROM THE WORLD CUP. SO I DON’T THINK THAT THEY NECESSARILY NEED THE MONEY. BUT THEY’LL ALWAYS SAY, LIKE, YOU JUST SAID, THIS IS TO THEN SUPPORT THE FURTHER GROWTH OF THESE OTHER, OF THE MEMBERS. CAROL: HYDRATION BREAKS, RIGHT? TIM: ARE YOU JOKING? VANESSA: WELL, THEY SHOULD. I THINK ONE OF THE THINGS WE’LL SEE HERE IS HOW IT, NEXT YEAR IS THE 2027 WOMEN’S WORLD CUP, WHICH WILL HAVE 48 TEAMS AGAIN COMPETING WITH 104 MATCHES, WHICH ON THE WOMEN’S SIDE, THIS INVESTMENT ACTUALLY COULD PROBABLY USE MORE INVESTMENT FOR THESE SMALLER COUNTRIES. TIM: RANDALL, I HEARD YOU JUMPING IN THERE. RANDALL: I WAS JUST GOING TO SAY, I DO THINK IF THE WORLD CUP IS GOING TO EXPAND TO 64 TEAMS, THEN WHAT COULD HAPPEN IS THAT THESE EARLY-ROUND GAMES MATTER LESS. THAT’S GOING TO UPSET THE NATIONS THAT ARE SUPERPOWERS, ENGLAND, FRANCE, ARGENTINA, BRAZIL, BECAUSE THEY DO HAVE TO PLAY TEAMS THAT MIGHT NOT HAVE QUALIFIED IN PREVIOUS TOURNAMENTS. SO IF FIFA DOES BY THEIR WORD AND SAY THIS MONEY IS GOING TO THE PROGRAMS AND IT’S GOING TO DEVELOP TALENT, WE COULD SEE GLOBAL SUPERSTARS FROM CAPE VERDE SOMEDAY AT A YOUNGER RATE THAN THIS YEAR, WHERE THE GOALKEEPER WAS OVER 40. WITH THAT IN MIND, IT SOUNDS GOOD. BUT THE QUESTION IS, DOES THE WORLD OF FOOTBALL TRUST IT? I’M NOT SO SURE ABOUT THAT. CAROL: MONEY IN SPORTS. TIM: I LOVE THIS. CAROL: NEVER WOULD HAVE THOUGHT IT WOULD GO TO THE LEVEL IT IS HERE IN THE U.S., BUT HERE WE ARE, RIGHT? VANESSA: WE’RE THE ONES WHO MADE IT THAT WAY. CAROL: WELL SAID. VANESSA, RANDALL, THIS IS "BLOOMBERG BUSINESS WEEK." >> THIS IS "BLOOMBERG BUSINESS WEEK DAILY" WITH CAROL MASSAR AND TIM STENOVEC, ON BLOOMBERG RADIO AND TELEVISION. CAROL: ALL RIGHT, EVERYBODY, WE ARE HEADED TO THE LAST HOUR OF TRADING, GETTING INTO IT. WE GOT A LOT COMING UP STILL ON "BLOOMBERG BUSINESS WEEK DAILY." IN THE MEANTIME, QUICK UPDATE ON THE TRADE ON THIS TUESDAY. REMEMBER, THE FED KICKED OFF ITS TWO-DAY MEETING, THE FOMC SPECIFICALLY, SECOND MEETING CHAIRED BY THE NEW INCOMING FED CHAIR, KEVIN WARSH. WE’LL GET A DECISION TOMORROW. SOME INTERESTING CHATTER, IF YOU WILL, ON THE BLOOMBERG ABOUT CITADEL SAYING MAYBE WE’LL GET THE SURPRISE, A SURPRISE RATE INCREASE. TIM: MIKE MCKEE WAS ASKED IF THE FED WOULD HOLD OR RAISE RATES TOMORROW, AND MIKE REPLIED YES. CAROL: EXACTLY. IT’S AN INTERESTING TIME, SO WE’LL SEE WHAT WE GET. LOOKING FORWARD TO THAT PRESS CONFERENCE. IN THE MEANTIME, ON THIS TUESDAY, YOU ARE LOOKING AT A S&P LITTLE CHANGED, THAT AMOUNTS TO ABOUT .3% HIGHER IN PERCENTAGE TERMS. DOW IS UP MORE THAN 600 POINTS, UP MORE THAN A PERCENT. NASDAQ 100 UNDER PRESSURE. TIM: WHAT ABOUT THE CHIP STOCKS? THOSE ARE UNDER PRESSURE. THE THREE NAMES ARE HIGHER IN THERE, NVIDIA AND SKYWORKS, EVERYTHING ELSE, THE OTHER 27 NAMES IN THE SOX ARE LOWER TODAY. MICRON DOWN 9%. ARM HOLDINGS DOWN. AND A.M.D. DOWN 8%. CAROL: ALL RIGHT, LET’S GET TO SOME MOVERS. STOCKS ON THE MOVE TODAY, I’M CAROL MASSAR ALONG WITH TIM STENOVEC. WITH US IS OUR MARKET CORRESPONDENTS, NORAH MULINDA, IN STUDIO. LET’S KICK IT OFF WITH SOME WELL KNOWN BRANDS, ACTUALLY. JET BLUE. NORAH: A LOT OF CONSUMER-FACING ONES. THE STOCK IS HIGHER BY ABOUT 9.5% RIGHT NOW AS WE SPEAK. THIS COMES AFTER THE COMPANY REAFFIRMED ITS FULL-YEAR GUIDANCE AND ESSENTIALLY SAID IT WILL REACH POSITIVE CASH FLOW NEXT YEAR. NOW, THIS, OF COURSE, BUOYING THE STOCK HIGHER. WE DID SEE A LOT OF STRONG DEMAND FOR THE COMPANY. I’M CURIOUS, I DON’T KNOW IF YOU GUYS RIDE OR FLY JET BLEW OFTEN. I HAVEN’T FLOWN IT SUPER OFTEN. TIM: WE FLEW IT ABOUT A YEAR AGO. I CAN SPEAK FOR CAROL. CAROL: EAST COAST, WEST COAST. NORAH: YOU THINK OF IT AS A BUDGET AIRLINE? TIM: IT HAS NO IDENTITY, THAT’S THE CHALLENGE. IT USED TO BE AN UPSCALE BUDGET AIRLINE, BUT ANYWAY, THIS IS THE WHOLE ISSUE WITH JET BLUE. BUT THEY HAVE A PREMIUM PRODUCT WITH MINT. NORAH: THAT’S VERY TRUE. BUT BECAUSE OF THE BANKRUPTCY OF SPIRIT AIRLINES, JET BLUE IS GOING TO BE EXPANDING ITS OPERATIONS IN NEW YORK CITY AT LA GUARDIA AIRPORT, SO THEY ACTUALLY DID PURCHASE BOTH TAKEOFF AND LANDING SPOTS AT LA GUARDIA AIRPORT, THOSE LEFT OVER FROM SPIRIT. SHARES OF JET BLUE UP 30% SO FAR THIS YEAR. CAROL: YOU KNOW, IT’S A $5 STOCK, $6 STOCK. IT WAS $21 A SHARE BACK IN EARLY 2021. I MEAN, I REMEMBER WHEN THEY INTRODUCED MINT. THEY WERE JUST SUCH AN INTERESTING, YOU KNOW, THEY DIDN’T HAVE ANY LEGACY, YOU KNOW, THEY DIDN’T HAVE PLANES, THEY HAD NEW PLANES, THEY DIDN’T HAVE ANY OF THE LEGACY METRICS, IS IT WAS SUCH A DIFFERENT CARRIER, GIVING THE CHIPS, LIKE, IT WAS JUST A WHOLE DIFFERENT TAKE. TIM: BUT THAT WAS 25 YEARS AGO, AND IT WORKED. CAROL: I KNOW. TIM: YOU GET ON ONE OF THE PLANES NOW, AND LOOKS LIKE THE MONITOR IS STILL FROM 2006. CAROL: RIGHT. THE PLANES ARE A LITTLE ROUGH, YEAH. AND I STILL LIKE THE MINT SERVICE, LIKE I LOVE IT. WE TALK ABOUT, YOU KNOW, THERE’S ONE ROW WHERE IT’S JUST ONE SEAT. TIM: THERE’S TWO ROWS, WHERE YOU HAVE YOUR PRIVATE CABIN. CAROL: AND IT’S REALLY KIND OF A SWEET RIDE. BUT YOU’RE RIGHT, TIM. THEY LOST THEIR PERSONALITY, WHO THEY ARE. BUT NONETHELESS, INVESTORS LIKE IT TODAY, RIGHT? NORAH: SPEAKING OF SUITE, SEEMS AS THOUGH CONSUMERS ARE NOT LIKE THE SWEETS AND CALORIES. COCA-COLA, SHARES ARE HIGHER AFTER IT LISTED ITS OUTLOOK. CONSUMERS ARE INTERESTED IN ITS SUGAR-FREE SODA SAYS, SO MAYBE PEOPLE NOT INTERESTED IN THE HIGH-CALORIE, SUGARY DRINKS THAT WE SEE ON COMMERCIALS ALL THE TIME. BUT NOT ONLY THAT, WE’VE BEEN TALKING A LOT ABOUT THE FIFA WORLD CUP. THIS COMPANY GETTING A BOOST, BEING A MAJOR SPONSOR OF THE FIFA WORLD CUP. AND YOU’RE SEEING THAT REFLECTED IN SOME OF THE PRICE ACTION THAT WE’RE SEEING ON WALL STREET. J.P. MORGAN SAYING THAT IT IS A POSITIVE STAND JOINT, ONLY LOOK AT AT THE MIX OF SOME OF THE EARNINGS WE’VE BEEN GET SOG FAR. CAROL: COLA-COLA IS UP 26% YEAR TO DATE. GO FIGURE. AND I WOULD ARGUE STILL ONE OF THE BEST KNOWN BRANDS, GLOBAL BRANDS THAT ARE OUT THERE. ALL RIGHT, NOW WE GO TO ZILLOW. NORAH: YES, REAL ESTATE. SHARES OF ZILLOW HIGHER. WE SAW A FEDERAL JUDGE DISMISS A LAWSUIT AGAINST ZILLOW THAT ESSENTIALLY DID CLAIM THAT IT WAS TRICKING BUYERS INTO WORKING WITH ITS PARTNERS AND ALSO INCENTIVIZING AGENTS TO STEER CONSUMERS TOWARD ZILLOW HOME LOANS. IT WAS ABLE TO BYPASS THIS OVERHANG, AND SO YOU ARE SEEING ANALYSTS ON WALL STREET, SOME AT JEFFRIES, SAYING THEY THINK IF THEY CAN GET A WIN HERE, MAYBE THEY CAN WIN SOME OF THESE OTHER CASES THAT THEY’RE UNDER SCRUTINY FOR. BUT THE STOCK IS DOWN ABOUT 51% THIS YEAR. CAROL: IT’S SHORT, TOO. SO THERE’S DEFINITELY A LOT OF NEGATIVE SENTIMENT THIS ONE. GREAT NAMES, REALLY APPRECIATE IT. NORAH MULINDA THERE WITH SOME STOCKS ON THE MOVE, OUR MARKET CORRESPONDENT. CHECK OUT HER STOCK MOVERS PODCAST. FIND IT ON APPLE, SPOTIFY OR ANYWHERE YOU GET PODCASTS. TIM: MARKETS ARE MIXED ON THIS TUESDAY AFTERNOON, A FED TUESDAY, AS THE FED OPEN MARKETS COMMITTEE IS MEETING AS WE SPEAK. WE’LL HEAR FROM THEM TOMORROW. THE S&P DOWN .3%, UP, EXCUSE ME, .3%. NASDAQ DOWN .1%. CAROL: THEY’RE PROBABLY HAVE TEA AND COOKIES RIGHT NOW, A LITTLE AFTERNOON SNACK.