OpenAI Barrels Toward IPO, US Readies Iran Econ Attack | Bloomberg Businessweek Daily 8/14/2026

>> THIS IS BLOOMBERG "BUSINESSWEEK DAILY." WITH INSIGHT ON THE PEOPLE, COMPANIES, AND TRENDS SHAPING TODAY'S COMPLEX ECONOMY. 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: VERY GOOD AFTERNOON, EVERYBODY. WELCOME, WELCOME. WE ARE ACROSS BLOOMBERG PLATFORMS, AS YOU KNOW. ON A DAY WHERE WE SEE MARKETS KIND OF AN EVEN SPLIT IN TERMS OF WINNERS AND LOSERS, GAINERS AND DECLINERS IN THE S&P 500, SO THE RALLY, TO SOME EXTENT, LOOK AT THE OVERALL INDEX NUMBERS AND WHERE THEY ARE TRADING, THAT RALLY COMING TO AN END. TO -- TIM: 2% AWAY FROM A RECORD ON THE NASDAQ. THERE WERE SOME ECONOMIC NUMBERS WE GOT TODAY AND MAYBE IT CHANGES THE CALCULUS OF WHAT THE FED WILL DO COME SEPTEMBER, BUT LIKE WE HAVE BEEN SAYING, A LOT CAN HAPPEN BETWEEN NOW AND SEPTEMBER. CAROL: WE DID I THINK GET TO THE PART IN THE CONVERSATION WHERE SHE SAID EVERY C-SUITE SHE IS TALKING TO, THEY ARE CONCERNED ABOUT THE CONSUMER, AND THE DATA WE GOT TODAY SHOWS A CONSUMER MIGHT BE SLOWING DOWN ON SPENDING, AND WE HAD U.S. CONSUMER SENTIMENT DROP TWO FOR THE FIRST TIME IN THREE MONTHS. TIM: WE WILL HAVE MORE ON THIS AND ALSO WITH THE MARKETS ARE DOING FROM CHARLIE PELLETT IN A MOMENT. CAROL: WE WILL GET TO THAT IN JUST A SECOND. OUR FOCUS, AND UNPRECEDENTED ECONOMIC ISOLATION PLAN FOR IRAN. WHAT WE KNOW NOW COULD IMPACT A LOT OF THINGS, THIS WAR, HOW IT COULD IMPACT GLOBAL ENERGY MARKETS, THAT THREAT OF ECONOMIC ISOLATION IS, THOUGH, OUR MOST-READ STORY. THIS ONE CAUGHT OUR ATTENTION, SO WE WANT TO TACKLE IT. IN -- AND "FRIDAY NIGHT LIGHTS" MEETS "LORD OF THE FLIES." WE TALKED TO A FORMER WALL STREET ARE TURNED MENTOR OF HIGH SCHOOL ATHLETES. HE'S GOT A NEW BOOK OUT. TIM: GOT IT RIGHT HERE. CAROL: IT WILL BE INTERESTING TO SEE WHAT HE HAS TO SAY. IT'S A GREAT FRIDAY STORY. TIM: IT IS. IF YOU HAVE QUESTIONS FOR US OR ANY OF OUR GUESTS, GO TO BLOOMBERG.COM/ASKRADIO, A NEW FEATURE AVAILABLE EXCLUSIVELY TO SUBSCRIBERS OF THE BLOOMBERG TERMINAL AND SUBSCRIBERS TO BLOOMBERG.COM. ASK US QUESTIONS, ASK OUR GUESTS QUESTIONS. WE WILL POSE THEM THROUGHOUT THE DAY. CAROL: LET'S GET YOU GOING ON THIS FRIDAY AND GET A CHECK ON THE TRADE. CHARLIE: HERE'S WHAT IS GOING ON -- STOCKS ARE LOWER RIGHT NOW. RUSSELL 2000 INDEX OF SMALL-CAP SHARES IS HIGHER, BUT I'M RUNNING THE WEEKLY NUMBERS ON THE BLOOMBERG. THREE IN A ROW RIGHT NOW, WE HAVE THE S&P 500 INDEX ON TRACK FOR ANOTHER WEEKLY GAIN DESPITE THE SELLING TODAY, LOOKING AT A GAIN OF .3%. BOTTOM LINE, RIGHT NOW, ABOUT TWO HOURS TO GO AHEAD OF THE CLOSING BELL. STOCKS LOWER ACROSS THE BOARD, S&P RIGHT NOW DOWN 17, A DROP OF .2%. I'LL INDUSTRIALS, A DECLINE OF .2%. NASDAQ, A DROP OF .4%. AGAIN, THE RUSSELL 2000 INDEX OF SMALL-CAP SHARES BUCKING THE TREND, UP ABOUT .3 PERCENT. THE TWO-YEAR, 4.16 PERCENT, THE 10-YEAR, 4.69%. SPOT GOLD ADVANCING. WEST TEXAS INTERMEDIATE CRUDE, UP 1.1%. BRENT AHEAD OF THE WEEKEND UP BY ABOUT 1.3 PERCENT. RETAIL SALES AMONG THE ECONOMIC REPORTS TODAY. THEY FELL IN JULY BY THE MOST IN MORE THAN A YEAR AS CONSUMERS PULLED BACK ON PURCHASES. WE ARE LOOKING AT WALMART SHARES DOWN .4%. TARGET DOWN .5%. WALMART AND TARGET BOTH REPORT NEXT WEEK. AGAIN RECAPPING HERE, S&P 500 INDEX TRADING DOWN BY .2%. WEEKLY NUMBERS, THOUGH, POINTING AT A GAIN. SUBSCRIBE TO BLOOMBERG NEWS WHEREVER YOU GET YOUR PODCASTS. I WAS A BLOOMBERG BUSINESS FLASH. CAROL: NO ONE DOES IT BETTER. THANK YOU SO MUCH. SAFE TO SAY ONE OF THE MOST ANTICIPATED MARKET EVENTS WILL EVENTUALLY BE WHEN WE GET THEM THE IPO'S OF ANTHROPIC AND OPENAI. OPENAI IS ON TRACK TO GENERATE ANNUALIZED REVENUE OF MORE THAN $40 BILLION BASED ON ITS CURRENT PERFORMANCE. THAT'S ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER, ROUGHLY DOUBLING ITS RUN RATE FROM THE END OF 2025. THAT LOOKS LIKE A PRETTY GOOD JUMP, DON'T YOU THINK? TIM: YEAH, BUT THERE'S A LOT OF COMPETITION OUT THERE. THEY HAVE TO BE VERY INNOVATIVE, TOO. CAROL: YOU CAUGHT UP WITH RACHEL METZ EARLIER. TIM: I SAID WE'VE GOT TO GET HER BACK. CAROL: SHE'S OUT THERE IN SAN FRANCISCO. IT IS GOOD TO HAVE YOU BACK. AS THE AI TRADE NARRATIVE CONTINUES, TRYING TO UNDERSTAND THESE COMPANIES AS THEY HAVE CHANGED, AS THEIR EVALUATIONS GROW. TELL US ABOUT WHAT WE SEEM TO KNOW ABOUT OPENAI AND SOME OF THESE NUMBERS THAT ARE STARTING TO COME OUT. RACHEL: THERE'S A BUNCH GOING ON HERE. CAROL: I LOVE IT ALREADY. RACHEL: IT'S A LOT. WHAT WE HAVE DETERMINED IS THAT OPENAI'S REVENUE HAS GONE UP QUITE A BIT, ESPECIALLY WHEN YOU COMPARE IT TO THE LAST FIGURE WE WERE AWARE OF FROM THE END OF THE YEAR, WHICH WAS ABOUT $20 BILLION. $40 BILLION OR ABOVE IS WHERE THEY ARE TRACKING NOW, WHICH IS A LOT OF GROWTH. THE OTHER THING I THINK IS INTERESTING AS IT IS NOT JUST COMING FROM ONE PIECE OF THEIR BUSINESS. OUR UNDERSTANDING IS THAT IT IS ACROSS A BUNCH OF DIFFERENT PRODUCT LINES. IT'S IMPORTANT TO REMEMBER CONSUMERS STILL MAKE UP THE VAST MAJORITY OF THEIR USERS. SOME OF THIS IS IN CONSUMER GROWTH, AND YOU SAW IT RECENTLY THAT THEIR USE NUMBERS PUSHED ABOVE ONE BILLION ACTIVE WEEKLY USERS, SO THIS WOULD BE GROWTH IN CONSUMER IN PART OVER THERE, AND WE ALSO SEE ON THE BUSINESS SIDE, THAT HAS ALSO BEEN A GROWING, AND SOME OF THAT IS WITH CODEX, THEIR CODING PRODUCT THAT THEY HAVE BEEN PUSHING TO RIVAL COMPANIES SUCH AS ANTHROPIC. TIM: WE KNOW CODEX IS IMPORTANT AND CLAUDE CODE IS IMPORTANT, BUT I'M GOING TO THROW CAROL UNDER THE BUS FOR A SECOND. I THINK YOU SAID THIS ON AIR. FORGIVE ME IF YOU DID NOT. SHE IS USING THESE LLM'S, AND SHE HITS AND LIMIT AND JUST GOES TO A DIFFERENT ONE. I DO THE SAME THING. I DON'T PAY FOR ANY OF THESE. I USE CHATGPT. I USED CLAUDE WHEN I RUN OUT OF SPACE ON CHATGPT. CAROL: YOU'RE RIGHT, BUT I WAS USING CHATGPT, AND THERE'S A BIG HISTORY AT THIS POINT. TIM: THAT IS THE BOOK FOR YOU? -- THAT IS THE MOAT FOR YOU? CAROL: I'M GENERATING AN IMAGE, AND IT TELLS ME, COME BACK IN 23 AND A HALF HOURS. TIM: OF THOSE BILLION WEEKLY USERS, HOW MANY OF US ARE PAYING ? RACHEL: THAT'S A GOOD QUESTION. I DON'T KNOW OFF THE TOP OF MY HEAD AND I WILL LOOK INTO THAT. TIM: I DON'T KNOW IF ANYONE KNOWS OUTSIDE THE WORLD OF CHATGPT OR OPENAI. RACHEL: WE DO KNOW AN INCREASING NUMBER OF PEOPLE ARE PAYING FOR IT BECAUSE THAT IS WHERE SOME OF THEIR REVENUE GROWTH IS COMING FROM. WE ALSO KNOW THAT THEIR ADVERTISING BUSINESS HAS ALSO BEEN PICKING UP. EVEN IF YOU ARE USING IT, NOT PAYING FOR IT PERHAPS, YOU COULD STILL BE CONTRIBUTING TO REVENUE GROWTH IF YOU ARE PART OF THE ADVERTISING REVENUE GOING UP. WE WILL SEE. I WILL GET BACK TO YOU WHEN I HAVE MORE CLARITY ON THE SLOPE THERE. CAROL: BEFORE WE WRAP UP, BECAUSE WE HAVE TO JUMP OFF TO ANOTHER STORY, BUT YOU HAVE ALL THESE STORIES. THE METRIC THEY SAY IS A MORE ACCURATE REFLECTION OF THE USE OF THE SOFTWARE. YOU HAVE THE AI TO RIVAL OPENAI AND ANTHROPIC AND DEEPSEEK. THE STUFF IS HAPPENING FAST, AND NEW COMPANIES, DIFFERENT COMPANIES ARE DOING STUFF, SO IT IS EVOLVING. WHO KNOWS -- I DON'T KNOW IF I CAN USE THE WORD AND GAME, BUT HOW THIS ALL KIND OF LANDS. WE DON'T REALLY KNOW YET, OR DO WE? RACHEL: I DON'T THINK WE DO. I THINK IT IS IMPORTANT TO UNDERSTAND THAT EVERY INDIVIDUAL MODEL RELEASE IS SIMPLY THAT. THE MODEL IS RELEASED AND THEN ANOTHER MODEL IS RELEASED AND THE AIM IS TO MAKE EACH ONE BETTER THAN THE LAST. IT IS A SPECTRUM. WE WILL SEE THINGS CONTINUE APACE. IT'S POSSIBLE THERE WILL BE SEVERAL WINTERS HERE. A LOT OF COMPANIES BOTH INSIDE THE U.S. AND OUTSIDE THE U.S. AT THIS POINT ARE DEVELOPING INTERESTING TECHNOLOGY AND TAKING DIFFERENT APPROACHES. IT'S GOING TO STILL BE TBD, I WOULD SAY, AND I THINK THERE'S GOING TO BE A LOT OF INTERESTING STUFF CONTINUING TO HAPPEN OVER THE NEXT YEAR OR TWO, ESPECIALLY IF AN WHEN WE SEE SOME OF THESE NEW IDEAS. CAROL: THANK YOU. WE WILL JUST KEEP IT GOING. AND WE WILL HAVE MORE STORIES. LOVE, LOVE, LOVE. HAVE A GREAT WEEKEND. BLOOMBERG NEWS' AI REPORTER, RACHEL METZ. TIM: I WAS HOPING ONE OF HER KIDS WOULD COME INTO THE ZOOM. CAROL: DID THEY? TIM: NO. CAROL: I LOVE WHEN THAT HAPPENS. TIM: THERE'S ALWAYS HOPE. CAROL: LET'S GET TO ANOTHER MOST-RED. IT MIGHT STILL EVEN BE THE MOST-READ ON THE BLOOMBERG AT THIS HOUR. WE ARE TALKING ABOUT HOW THE U.S. WILL SOON ANNOUNCE UNPRECEDENTED ECONOMIC MEASURES AGAINST IRAN ACCORDING TO U.S. TREASURY SECRETARY SCOTT BESSENT, INTENSIFYING THE TRUMP ADMINISTRATION'S EFFORT TO FORCE IRAN TO CAPITULATE. SECRETARY BESSENT SAID THIS IN AN INTERVIEW WITH NEWSMAX YESTERDAY. >> WE WENT FROM EPIC FURY TO ECONOMIC FURY. WE WILL APPLY MEASURES LIKE HAVE NEVER BEEN SEEN IN THE HISTORY OF ECONOMIC ISOLATION ON A COUNTRY WHO WILL BE A COMBINATION OF ECONOMIC ISOLATION AND THE CONTINUED BLOCKADE IN THE STRAIT OF HORMUZ . CAROL: THAT, OF COURSE, WAS U.S. TREASURY SECRETARY SCOTT BESSENT. THIS SOUNDBITE WAS A COMMENT WE HAVE BEEN TALKING ABOUT A LOT, CERTAINLY HERE IN THE NEWSROOM. FOR WHAT THIS MIGHT MEAN. WILL IT LIKELY HAPPEN? LET'S GO TO THE NEWS BUREAU IN WASHINGTON, D.C., AND ECONOMIC STATECRAFT LEAD CHRIS KENNEDY. I FEEL LIKE WE ARE ALWAYS ASKING YOU THIS IS OUR FIRST QUESTION. WHAT DO WE KNOW? WHAT DOES IT MEAN? WILL THERE BE NEW POLICY FROM THE U.S. ON IRAN, SOME NEW MEASURES? IS IT LIKELY TO HAPPEN? CHRIS: THANKS. I THINK WE WILL SEE SOME NEW POLICY ANNOUNCEMENTS AS SEC. BESSENT DISCUSSED. I THINK HE SAID IN THE COMING WEEKS, TWO WEEKS OR SOMETHING LIKE THAT. WE WILL HAVE TO SEE, BUT THESE ARE POLICY ANNOUNCEMENTS. WHAT DOES THAT MEAN IN TERMS OF PRACTICAL IMPACT? WE BELIEVE THAT THE U.S. ALREADY HAS THE TOOLS IT NEEDS TO PUT ADDITIONAL PRESSURE ON IRAN, BUT IT HAS STOPPED SHORT OF TARGETING SOME OF THE KEY FINANCIAL NODES THAT IRAN RELIES ON FOR BOTH TRADE AND FINANCIAL TRANSACTIONS, PRIMARILY IN CHINA, BUT ALSO IN THE GULF. THE REASONS FOR THAT ARE POLITICAL. THESE ARE POLITICAL CONSTRAINTS THAT THE TRUMP ADMINISTRATION IS UNDER. THERE IS A REAL CONCERN ABOUT POTENTIAL RETALIATION FROM CHINA IF THE U.S. GOES AFTER MAJOR CHINESE BANKS, FOR INSTANCE, AND THOSE CONSTRAINTS WILL REMAIN, REGARDLESS OF WHAT POLICY ANNOUNCEMENTS WE MIGHT SEE OUT OF THE ADMINISTRATION. WE COULD SEE SOME NEW SANCTIONS POLICY ANNOUNCEMENTS. WE COULD SEE ADDITIONAL ACTION ON FROZEN ASSETS, FOR INSTANCE. MORE IMPORTANT, IF IT WILL LEAD WANT TO CHANGE ITS CURRENT POSTURE. I THINK THAT IS A SECOND QUESTION, AND WE ARE DOUBTFUL. TIM: WHY ARE YOU DOUBTFUL? THERE'S THE BROADER QUESTION ABOUT ECONOMIC SANCTIONS AND IF THEY WERE, ESPECIALLY WITH CERTAIN REGIMES AND CERTAIN REGIMES WITH CERTAIN CHARACTERISTICS. I THINK THIS ONE HAS PROVEN THAT IT DOES NOT CHANGE BASED ON ECONOMIC SANCTIONS, AT LEAST ACCORDING TO WHAT HAS HAPPENED IN RECENT YEARS CHRIS: WE HAVE SEEN THIS WORD OF MAXIMUM PRESSURE, ECONOMIC ISOLATION PRESSURE APPLIED BOTH AGAINST IRAN AND ALSO AGAINST NORTH KOREA IN 2017 WHERE AND -- WHEN THERE WAS A MASSIVE SANCTIONS EFFORT IMPOSED BY THE U.S. AND WE SAW IT DID NOT CHANGE THE SITUATION IN TERMS OF THE POLITICAL CONTROL OF KOREA. WE DID NOT SEE ANY ADDITIONAL LIBERALIZATION OR ANYTHING LIKE THAT AND WE HAVE SEEN THAT IRAN IS ADEPT AT MANAGING THE PRESSURE IMPOSED ON IT BY THE U.S. CERTAINLY OVER TIME, THE PRESSURE CAN BUILD AND KNOWING SECRETARY BESSENT, HE MIGHT BE LOOKING TO PUT ADDITIONAL PRESSURE ON THE IRANIAN CURRENCY. IRAN IS DEALING WITH PRETTY SEVERE INFLATION RIGHT NOW BUT THE REALITY IS THAT CONFLICT IS EXISTENTIAL FOR THE REGIME. SO, BARRING SOME MASS UPRISING THAT TOPPLES THE REGIME FROM INSIDE, IT IS HARD TO IMAGINE A SCENARIO WHERE IRAN AGREES TO MAJOR CONCESSIONS BASED ON ECONOMIC PRESSURE. CAROL: THERE IS AN INTERESTING STORY OUT ON THE BLOOMBERG TODAY ABOUT HOW IRANIANS ARE STRUGGLING TO AFFORD GROCERIES BECAUSE U.S. SQUEEZE ON THE ECONOMY ALREADY. THEY ARE ALREADY IN A TOUGH PLACE. CHRIS, WHAT DO WE KNOW ABOUT THE REGION AND THEIR SUPPORT OF POSSIBLY THE U.S. INTENSIFYING WITH ECONOMIC ISOLATION ON IRAN? ARE THEY OK WITH THIS? DOES THIS FURTHER ESCALATE THE WAR? CHRIS: IT COULD. SO, OF COURSE, THE DETAILS WILL MATTER. THERE ARE BOTH ERA COUNTRIES THAT STILL SERVE AS IMPORTANT NODES IN IRAN'S ABILITY TO ACCESS WERE IN EXCHANGE FOR INSTANCE. THE U.S. SO FAR HAS BEEN UNWILLING TO TARGET SOME OF THESE BECAUSE THESE ARE ALLIES OF THE U.S. SO I'M SURE THAT IF SOME OF THESE ECONOMIES AND COUNTRIES ARE LOOKING AT THE DETAILS OF WHAT WE SEE OVER THE NEXT TWO WEEKS. I DO THINK THERE IS A RISK, AS YOU MENTIONED, WE HAVE SEEN AROUND TAKE A SLIGHTLY MORE OFFENSIVE POSTURE MILITARILY IN THE LAST FEW WEEKS BEING WILLING TO STRIKE FIRST AND IF THEY ARE UNDER PRESSURE THEY MIGHT BE WILLING TO DO IT AGAIN. I THINK THAT IS A MORE LIKELY INITIAL RESPONSE FROM TEHRAN THEN CAPITULATION, FOR INSTANCE. TIM: I WANT TO SHOW -- THROW SOMETHING AT YOU THAT IS NOT IN YOUR PURVIEW WHAT YOU HAVE AN EYE ON IT AND IT IS THE IDEA THAT WE'VE HEARD FROM CERTAIN U.S. TROOPS IN THE REGION. AND THE REPORTING AROUND THEIR EXPERIENCE, SPECIFICALLY WHEN IT COMES TO CONDITIONS ABOARD THE USS ABRAHAM LINCOLN. I WONDER IF THAT LEADS THE ADMINISTRATION TO MAKE ANY CHANGES TO ITS STRATEGY HERE. CHRIS: IT IS PRETTY TERRIBLE, THE REPORTING WE HAVE HEARD. AND IT IS A GOOD THING THAT SOME OF THESE - TROOPS THAT HAVE BEEN DEPLOYED FOR NINE MONTHS ARE RETURNING HOME AND I THINK IT IS PLAYING A ROLE IN THE U.S. DECISION TO FOCUS MORE ON THE ECONOMIC PRESSURE AND PULL BACK FROM THE MILITARY PRESSURE ALONG WITH SOME OF THE OTHER REPORTING ABOUT DIMINISHED STOCKPILES OF DEFENSIVE MUNITIONS IN PARTICULAR. SO I THINK OVERALL IT IS PLAYING A ROLE IN THIS TACK AWAY FROM MILITARY PRESSURE AND TOWARD ECONOMIC PRESSURE. I THINK THE BIGGER QUESTION IS HOW LONG CAN THE U.S. SUSTAIN THIS BLOCKADE, FOR INSTANCE AND STILL BE IN A POSITION TO EXERT THIS PRESSURE OVER TIME. RIGHT NOW IT APPEARS IRAN IS PLAYING A WAITING GAME AND IS WILLING TO WAIT THIS OUT. CAROL: I'M GOING TO SQUEEZE THIS IN, DOES IT SHOW THE U.S. IS SAYING, OUR MILITARY SUPPLIES ARE DWINDLING. THIS IS WHAT WE HAVE TO DO TO BRING THIS THING TO AN END. CHRIS: I THINK CERTAINLY SOME PEOPLE ARE INTERPRETING IT THAT WAY AND THE LEADERSHIP IN IRAN IS VERY ATTUNED TO THE REPORTING AROUND THESE ISSUES. IT DEFINITELY DOES NOT PUT US IN A GOOD NEGOTIATING POSITION. CAROL: THE TWISTS AND TURNS. CHRIS KENNEDY COVERING IT ALL. WE STAY ON THE ECONOMY, THE IMPACT OF THE U.S. ECONOMIC ISOLATION PLAN ON IRAN AND WE DO IT A LITTLE FURTHER ESPECIALLY WHEN IT COMES TO ENERGY. ♪ CHARLIE: WE DO CHECK MARKETS ALL DAY LONG HERE AT BLOOMBERG. THE DOW, THE S&P AND NASDAQ ARE ALL IN THE RED. WALL STREET WRAPPING UP THE WEEK ON TRACK FOR A WINNING WEEK. A SLOW DOWN IN THE U.S. ECONOMY REINFORCING THAT THE FED WILL HOLD STEADY TO PREVENT FURTHER WEAKNESS. S&P, A DROP OF .2%. THE DOW IS LOWER BY .1%. AND THE S&P IS STILL HOLDING CLOSE TO A RECORD. THE NASDAQ COMPOSITE INDEX HAS A DROP OF ABOUT .3%. THE RUSSELL 2000 INDEX OF SMALL-CAP SHARES ON A DOWN DAY FOR MUCH OF THE MARKET BUT THE RUSSELL 2000 IS ADVANCING BY .4%. THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX DOWN BY 1.4 PERCENT. THE 10 YEAR YIELD, 4.69% AND THE 30 YEAR, FIVE POINT 26%. GOLD IS UP .7%. IN A RALLY FOR CRUDE AHEAD OF THE WEEKEND, WTI UP BY ONE POINT 3%. A BARREL OF BRENT UP BY ONE POINT 5%. TESSLER SHARES UP .7%. THE EV MAKER REPORTEDLY PLANNING TO UNVEIL A NEW ROADSTER DESIGN WITH FLOGGING CAPABILITIES AS SOON THIS MONTH. THRUSTERS FOR THIS VEHICLE WOULD BE DEVELOPED BY SPACEX. TESSLER SHARES UP BY .7%. A COUPLE AIR MOBILITY RIVALS SEEING -- JOBY AVIATION AND ARCHER AVIATION DOWN BY 6.1%. I'M CHARLIE PELLETT AND THAT IS A BLOOMBERG BUSINESS FLASH. CAROL: OIL, WE'VE SEEN IT FLUCTUATE A LITTLE TODAY AS TRADERS WEIGH ON A U.S. THREAT TO IMPOSE ECONOMICALLY UNPRECEDENTED MEASURES. THERE IS AN UNPRECEDENTED ECONOMIC MEASURES ON IRAN. THERE ARE SOME CONCERNS THAT THE WAR SNARLED EVERYTHING GOING ON IN THE STRAIT OF HORMUZ AND AT SIX MONTHS. TIM: REMEMBER, IT WAS 4-6 WEEKS -- NOT VENEZUELA. CAROL: NOT EVEN CLOSE. WE WANT TO TALK ABOUT THE GLOBAL ENERGY MARKETS AND IF THE U.S. CAKES THESE MEASURES, WHAT IT MIGHT MEAN. CLARA GILLISPIE IS SENIOR FELLOW FOR CLIMATE AND ENERGY AT THE COUNCIL ON FOREIGN RELATIONS JOINING US AGAIN. GREAT TO HAVE YOU BACK WITH US. THESE UNPRECEDENTED ECONOMIC MEASURES THAT SCOTT BESSENT HAS TALKED ABOUT, WE KNOW THE U.S. HAS HAD SANCTIONS ON TEHRAN SINCE 2018. WE DON'T KNOW EXACTLY WHAT THE NEXT STEP COULD MEAN. HOW ARE YOU THINKING ABOUT THIS AND WHAT ARE THE IMPLICATIONS WHEN IT COMES TO IRAN AND ENERGY AND GLOBAL ENERGY MARKETS? CLARA: I WILL SAY THAT I READ THIS STATEMENT WITH A FAIR AMOUNT OF CURIOSITY AND ALSO SKEPTICISM. THE DETAILS HAVE BEEN SCARCE ON WHAT THIS COULD POTENTIALLY MEAN. I THINK WE'VE SEEN A NUMBER OF TIMES OVER THE LAST SIX MONTHS WHERE THE ADMINISTRATION HAS PERIODICALLY BEEN VERY SPECIFIC AND BOLD IN ITS RHETORIC ON POTENTIAL MEASURES THAT MIGHT TAKE AND THEN QUICKLY OR RELATIVELY QUICKLY WALKED THEM BACK. SOME OPEN-ENDED QUESTIONS THERE. I THINK THERE ARE THREE THINGS I'M LOOKING FOR IN PARTICULAR WITH NEXT WEEKEND THE IDEA THAT WE WOULD EXPECT TO HEAR MORE ON THEM. TWO PARTS OF IT I THINK YOU WHEN YOUR PRIOR GUEST TOUCHED ON. ONE IS THE IDEA OF EXTENDED BLOCKADE. THE BLOCKADE ITSELF WOULD NOT INHERENTLY BE UNPRECEDENTED BUT THE DURATION AND HOW WE SUSTAIN IT IS THE QUESTION. THERE IS ALSO THE ISSUE OF SANCTIONS. ONE OF THE THINGS I'M LOOKING AT IN ENERGY MARKETS IN PARTICULAR IS THE TRUMP ADMINISTRATION FROM THE PRESIDENT TO A WIDE RANGE OF OFFICIALS HAVE BEEN VERY CONCERNED AND FOCUSED ON THIS QUESTION OF HOW TO REDUCE IRAN'S ABILITY TO EXTRACT VALUE OR PAIN FROM CONTROL OF THE STRAIT OF HORMUZ. WE'VE SEEN A NUMBER OF APPROACHES TAKEN THAT FOCUS ON REOPENING THE STRAIT OR COMING TO DIPLOMATIC NEGOTIATIONS OR USE OF MILITARY THAT HAVE NOT MOVED THE NEEDLE, TO BE QUITE FRANK. ONE OF THE OTHER THINGS WE ARE STARTING TO SEE MORE FROM THE U.S. AND OTHER PARTNERS AS WELL IS A FOCUS ON REDUCING THE SIGNIFICANCE OF THE STRAIT ITSELF TO GLOBAL OIL MARKETS. THINKING OF ALTERNATIVE ROUTES BUT ALSO DIRECT WAYS TO BYPASS THE STRAIT TO REDUCE IRAN'S LEVERAGE. TIM: WE ARE TALKING YEARS BUT NOT MONTHS. CLARA: SOME THINGS MIGHT BE POSSIBLE WITHIN THE NEXT YEAR BUT A LOT OF THE THINGS WE ARE TALKING ABOUT IS NOTABLY LONGER THAN THAT. TIM: ARE YOU PREDICTING WE WILL BE TALKING ABOUT POTENTIALLY A CLOSED OR RESTRICTED STRATA REMOVES IN A YEAR? CLARA: I WOULD LOVE TO SAY NO BUT AT THIS POINT BOTH PRODUCERS AND BUYERS ARE ASSUMING THEY CAN NO LONGER HOLD OFF ON CONSIDERING THAT SCENARIO. EVEN IF THE STRAIT OF HORMUZ IS LITERALLY OPEN, IF THERE IS A WAY TO NAVIGATE THE STRAIT, IF WE HAVE ADDRESSED QUESTIONS ABOUT MINES, TOLLS. THERE IS STILL A QUESTION ABOUT HOW WILLING YOU ARE TO RELY ON ALL OF THOSE CONDITIONS BEING IN PLACE STILL AND WHAT YOUR POTENTIAL ALTERNATIVES LOOK LIKE. CAROL: I DO THINK ABOUT THE WORK AROUND. THE REGION IS INCREASINGLY -- WE SEE STORIES ABOUT A WAVE OF MIDDLE EASTERN CRUDE MAKING ITS WAY TO U.S. SHORES. 9 MILLION BARRELS FROM THE REGION EXPECTED TO ARRIVE TO U.S. PORTS IN AUGUST. THINGS ARE MOVING AROUND, INFRASTRUCTURE. NEW PIPELINE PLANS. I'VE NOT REALLY HEARD A HORMUZ THESIS BEFORE BUT ONCE YOU DO THE BUILD, YOU DON'T REALLY GO BACK UNLESS THERE IS A FINANCIAL INCENTIVE TO DO SO. IT FEELS THERE IS A LOT MORE AT PLAY IN TERMS OF SECURITY AND MAKING SURE THIS DOESN'T HAPPEN AGAIN OR THAT THEY ARE NOT SO VULNERABLE TO IRAN AND THE STRAIT. CLARA: I THINK THAT IS RIGHT. THE QUESTION IS, DO COUNTRIES GO BACK AND WHO GOES BACK IS AN OPEN ONE BUT THERE IS AN IDEA THAT, WHETHER OR NOT THE STRATA HORMUZ MAY CONTINUE TO PLAY AN IMPORTANT ROLE IN TERMS OF HOW EXPERTS COULD PREACH MARKETS, YOU DON'T NECESSARILY WANT IT TO BE YOUR ONLY EXIT POINTS. YOU DON'T WANTED TO BE YOUR ONLY STRATEGY FOR THIS. SOME BENEFITS TO REDUNDANCY AND JUST IN CASE OPPORTUNITIES. TIM: WHAT WOULD THAT BE? CLARA: THERE ARE COUPLE OF THINGS THAT COULD BE CURED THE MOST STRAIGHTFORWARD AND WHAT WE ARE SEEING RIGHT NOW IS IN TERMS OF ALTERNATIVE ROUTES. DIFFERENT SEA LANES. PIPELINES. THOSE SORT OF THINGS. ANOTHER WAY YOU CAN THINK ABOUT REDUNDANCY OR WAYS TO INCREASE YOUR INSURANCE POLICY FOR A POTENTIAL DISRUPTION IN ENERGY TRADE FLOWS RELATES TO THE STORAGE AS WELL. WE HEAR WE HEAR FROM IMPORTERS THINKING ABOUT WAYS TO INCREASE STORAGE OF OIL AND GAS, CARGOS, NOT IN THE AREA, BUT POTENTIALLY MUCH CLOSER TO MAJOR BUYERS IN ASIA. TIM: I JUST DON'T SEE REALISTICALLY AT THIS POINT -- THE CHALLENGE WE TALKED ABOUT FOR THE LAST -- I CANNOT BELIEVE IT HAS BEEN SIX MONTHS AT THIS POINT, HAS BEEN THAT PRIOR FEBRUARY THINGS FLOATED NORMALLY THROUGH THE STRAIT. WE ARE NOT EVEN TALKING ABOUT THE NUCLEAR ISSUE. THAT IS THE WHOLE PURPORTED REASON FOR THE U.S. AND AND ISRAEL TO DO THESE STRIKES. GO AHEAD. PLEASE. CLARA: NOT ONLY ARE WE NOT TALKING ABOUT THE NUCLEAR ISSUE, IT IS INTERESTING TO SEE VICE PRESIDENT VANCE SAY THAT THE CONCERNS ABOUT WHAT WE SEE IN OIL AND GAS MARKETS AT LEAST AT THE MOMENT IS THE U.S.'S TOP CONCERN IN THIS CONFLICT. TIM: I HAVE NO QUESTION, I AM SORRY. I AM JUST POINTING THIS OUT. WE SPENT THE FIRST 30 MINUTES OF OUR PROGRAM TALKING ABOUT DISRUPTIONS TO THE OIL MARKET. WE ARE NOT TALKING ABOUT A WAY TO GET IRAN TO -- ULTIMATELY IRAN IS SUPPOSED TO MOVE AWAY FROM ITS NUCLEAR PROGRAM, BUT THAT HAS BEEN PUT ON THE BACK BURNER AS A RESULT OF THE SPIRIT THAT SHOWS THE POWER IRAN HAS OVER THE STRAIT. CLARA: ABSOLUTELY. I WISH I HAD A BETTER ANSWER. TIM: I WISH I HAD A BETTER QUESTION. CAROL: NO, IT'S A REALLY GOOD POINT. I DON'T KNOW. TIM: ARE WE LOSING FOCUS? CAROL: STAY WITH ME FOR A SECOND, DO WE HAVE TO REDUCE OUR DEPENDENCE ON THE STRAIT OF HORMUZ FOR A WHILE -- FOR OIL? TIM: AS A WORLD? IT IS NOT NECESSARILY OF US, WE HAVE OIL. CAROL: THIS IS BEEN AN INCREDIBLE WEAPON FOR IRAN TO BRING THE WORLD TO ITS KNEES. THE U.S. WAS SOMEWHAT INSULATED BECAUSE OUR ENERGY PICTURE HAS CHANGED A LOT OVER THE LAST DECADES IN WHAT WE ARE RELIANT ON. BUT IF WE CAN REDUCE THAT RELIANCE AND FIND OTHER PATHWAYS AND STRAITS, CAN YOU THEN GO BACK TO MY WRITTEN AND SAY WE DON'T NEED YOU FOR THAT ANYMORE, IT IS TIME TO GET RID OF ALL OF YOUR NUCLEAR WEAPONS? IS THAT THE PROCESS HERE, OR AM I JUST CRAZY? YOU COULD SAY I AM CRAZY. CLARA: SOME OF THIS GOES BEYOND ME IN TERMS OF MILITARY STRATEGY. THE HOPE IN SOME WAY IS TO TAKE THIS OFF THE TABLE AS A CONCERN. WHO WE MEAN WHEN WE SAY "WE" IS AN IMPORTANT ITEM. THE UNITED STATES IN PARTICULAR HAS SIGNIFICANTLY REDUCED ITS DIRECT RELIANCE AND DEPENDENCE ON THE STRAIT OF HORMUZ. WE CAN STILL BE NEGATIVELY IMPACTED WHEN OTHER ECONOMIES DO HAVE THEIR IMPORTS DISRUPTED, WHETHER THAT IS THE RISING COST OF GOODS OR OTHER VULNERABILITIES. WE HAVE ALSO SEEN I THINK A NUMBER OF MAJOR CONSUMERS ALREADY TAKE ACTION TO REDUCE THEIR RELIANCE ON THE STRAIT OF HORMUZ. I AM THINKING IN PARTICULAR ABOUT JAPAN. IT'S A NUMBER OF THE EMERGING-MARKET CATEGORY THAT ARE NOT JUST FLIRTING WITH THE IDEA OF REDUCING DEPENDENCE, BUT TALKING ABOUT IT IN SINCERE PRAGMATIC HARD-NOSED WAYS THAT REDUCING DEPENDENCE ON THIS WILL BE SOMETHING THAT GENERATES A COST THAT SOMEONE HAS TO BEAR. AND ARE YOU ASKING CONSUMERS, ARE YOU ASKING INDUSTRY TO COVER THIS? IS THERE A RIGHT ROLE FOR GOVERNMENT IN THE SPACE? THESE ARE ALL ACTIVE QUESTIONS THAT DON'T NECESSARILY GET BACK TO THE QUESTION OF WHAT THE ULTIMATE OUTCOME FROM THE WAR ITSELF MIGHT LOOK LIKE. TIM: WE ONLY HAVE ABOUT 25 SECONDS LEFT, BUT IS THERE ONE COUNTRY YOU THINK IS THINKING THE BEST ABOUT NOT JUST REDUCING DEPENDENCE BUT LOOKING FOR ALTERNATIVES BECAUSE THEY HAVE TO? CLARA: I'M TORN, BECAUSE IT IS NEVER JUST ONE COUNTRY. I AM MOST KEEN WHEN I SEE MULTIPLE COUNTRIES MOVE IN TANDEM. IN THAT CASE, TALKING ABOUT ASIA IN PARTICULAR, THERE IS NOTABLE WORK JAPAN HAS DONE IN THIS SPACE ABOUT ITS COOPERATION WITH SOUTHEAST ASIA. INDIA HAS ALSO BEEN FOCUSING ON THIS RECENTLY ABOUT THE QUESTION OF HOW YOU MOVE BEYOND HORMUZ WITH VERY CLEAR ACKNOWLEDGMENT THAT WILL NOT BE SOMETHING IT CAN DO ALONE. THIS WILL REQUIRE PARTNERSHIPS AND DIFFICULT WORK. CAROL: YOU FOLLOW CLIMATE TOO, SO YOU WONDER CLIMATE PRESSURES TOO ALREADY ARE SEEKING THE WORLD TO FIND ALTERNATIVES. CLARA, ALWAYS A SMART CONVERSATION. SENIOR FELLOW FOR CLIMATE AND ENERGY AT THE COUNCIL ON FOREIGN RELATIONS. COMING UP, WE ARE TALKING ABOUT STRIKE SEASON. ♪ CHARLIE: WE CHECK MARKETS ALL DAY WITH THE DOW, NASDAQ AND S&P ALL DECLINING. S&P INDEX MOVING LOWER ON THIS FRIDAY. WE ARE ON TRACK FOR ANYONE IN WEEK. THE S&P 500 INDEX TRADING LOWER BY .2%. WE HAVE THIS PRICE OF GOLD MOVING HIGHER, UP $32. UP .7%. WEST TEXAS INTERMEDIATE CRUDE UP 1.5%. BARREL OF BRENT UP BY 120%. -- UP BY 1.8%. THE TWO YEAR, 4.16%. 30 YEAR, 5.26%. NASDAQ DOWN .4%. THE S&P 500 INDEX LOWER BY .2%. WE ARE KEEPING AN EYE ON TYSON SHARES. THEY ARE HIGHER WITH THE REST OF THE MARKET DOWN TODAY. TYSON FOODS UP 3.3%. IT IS CLOSING MORE BEEF PLANTS AS A PROLONGED CAPITAL SHORTAGE FORCES THE U.S. BEEF PACKING INDUSTRY'S RESTRUCTURING. STOCKS LOWER, ON TRACK FOR A WINNING WEEK. S&P CURRENTLY UP BY .3%. THAT IS A BLOOMBERG BUSINESS FLASH. CAROL: TALK ABOUT TURNING LEMONS INTO LEMONADE, OR A STRIKE INTO A TOUCHDOWN. I KNOW WE ARE NOT MIXING UP SPORTS METAPHORS OR REFERENCES. I HAVE FOUR BROTHERS. I KNOW SPORTS A LOT. WE ARE ABOUT TO EXPLAIN WHAT THIS IS ABOUT WITH THE AUTHOR OF STRIKE SEASON. JOINING US IS THE AUTHOR OF "STRIKE SEASON: THE TEAM THAT PLAYED WHEN COACHES WALKED OUT." HE IS THE FOUNDER OF A NONPROFIT STEER FOR STUDENT ATHLETES THAT PROVIDE MENTORSHIP SUPPORT TO HIGH SCHOOL STUDENT ATHLETES FROM CHALLENGING CIRCUMSTANCES. WE ARE TOLD THE PROCEEDS FROM THE BOOK SALES WILL BE DONATED TO STEER. WELCOME. YOU'VE HAD A FOUR DECADE CAREER ON WALL STREET. TIM: HE KNOWS HIS WAY AROUND THE BLOOMBERG TERMINAL. MORGAN STANLEY AND ALSO CITIBANK. WELCOME, WELCOME. >> THANK YOU. IT IS AN HONOR TO BE HERE, PARTICULARLY UNDER THESE CIRCUMSTANCES. THERE'S A LOT GOING ON. IT IS FUNNY, HAVING DONE BUSINESS NEWS FOR A LOT, WHEN PEOPLE TALK ABOUT MARKETS, THEY TALK ABOUT SPORTS, THE CONNECTION, WHETHER IT IS KEEPING SCORE, THE STRATEGY. WERE YOU DESTINED TO WRITE THIS BOOK? MICHAEL: IT HAS RATTLED AROUND IN MY HEAD FOR 50 YEARS. IT HAS BEEN TRANSFORMATIONAL FOR ME AND THE COACHES AND UNION MEMBERS. I GOT TO THE POINT IN MY WALL STREET CAREER, WHICH I COULD TAKE SOME TIME AND GET THE ITCH SCRATCHED OUT ON A PIECE OF PAPER BY HAND IN THE FIRST GO AROUND. AND IT WAS QUITE A PROCESS GETTING IT OUT, BUT I'M GLAD IT'S OUT. LET YOU GUYS BE THE JUDGE OF HOW IT IS. TIM: WE LOVE IT. WE ARE GLAD TO HAVE YOU HERE TODAY. I DON'T WANT TO GIVE AWAY THE WHOLE BOOK, BUT I WANT TO GIVE YOU AN IDEA OF WHAT HAPPENED TO YOUR FOOTBALL TEAM. MICHAEL: IT IS MY SENIOR YEAR. A STRONG BIAS THAT WE PLAY THE BEST HIGH SCHOOL FOOTBALL IN THAT PART OF THE COUNTRY. THIS WAS THE SEASON, THIS WAS IT. WE HAD ABOUT 15 D1 PROSPECTS, A REALLY TALENTED TEAM. CAROL: THIS IS YOU? MICHAEL: THIS IS ME. CAROL: OK. MICHAEL: WE ARE PLAYING. AND SO, THIS IS THE BIG SEASON, THE ONE WHICH WILL DICTATE WHERE WE GO, HOW WE GO AND BASICALLY THE FOUNDATION OF OUR LIVES. WE GOT THROUGH SUMMER CAMP AND THE FIRST TWO WEEKS OF PRACTICES. WE ARE KNUCKLEHEADS BUT WE HEAR TALK ABOUT A STRIKE. THEY GO ON STRIKE ON A TUESDAY. WE PRACTICE AND PLAY OUR GAME ON A FRIDAY AND WE THINK IT IS AN EXTENDED SNOW DAY. WE THINK IT IS GREAT. IT WASN'T GREAT. WE GOT A CALL SATURDAY MORNING AND MET IN A PARKING LOT WITH THE COACH AND HE SAID, I'VE MADE A DECISION TO SUPPORT THE UNION. ALL THE COACHES HAVE MADE THE SAME DECISION AND JOINED THE UNION AND CANCELED OUR SEASON, EFFECTIVELY. AS YOU CAN IMAGINE, WE THROW THINGS, YELL, SCREAM. WE GATHER OURSELVES AND GET IN FRONT OF THE BOARD WHICH WAS THE ULTIMATE TRUMP CARD FOR THE UNION. THE HOTBED OF FOOTBALL AND THE BOARD WILL CAVE IN MINUTES OR HOURS BUT NO ONE EXPECTED WHAT HAPPENED NEXT WHICH WAS THE BOARD SAID, WE WILL ALLOW THESE GUYS TO COACH THEMSELVES AND PUT THREE ADMINISTRATORS ON THE SIDELINES AND GET THEM ACCESS TO FACILITIES AND GET THEM TRANSPORTATION. AND I SAY IGNORANTLY AND NOT ARROGANTLY, WE CONVINCE THE BOARD WE COULD PLAY FOOTBALL. WE'VE PLAYED FOOTBALL. WE CAN DO IT OURSELVES NOT KNOWING HOW HARD THAT WAS GOING TO BE. TIM: YOU HAD NOT READ "BOARD OF THE FLIES" YET. MICHAEL: I DID READ LORD OF THE FLIES. NO ONE DIES AS IN LORD OF THE FLIES BUT IT IS SELF-GOVERNANCE. A DIFFERENT FORM OF VIOLENCE. THERE IS A REASON 16-YEAR-OLDS DON'T COACH 16-YEAR-OLDS. CRAZY THINGS HAPPEN, COMICAL BUT ALSO DANGEROUS. CAROL: TALK ABOUT THOUGH A TRICKY LEARNING EXPERIENCE. MICHAEL: AND PEOPLE THAT HAVE READ THE BOOK SAID, WHAT WONDERFUL LEADERSHIP YOU LEARNED. THERE WAS NO PLANNING OR REFLECTION. I DESCRIBED IT AS READING, REACTING AND DOES CAPTAINS AS A SENIOR LEADER IS SAYING IF WE DON'T DO THIS WE HAVE NO COLLEGE OR SCHOOLS. ONE OF MY TEAMMATES PLAYED FOR THE NFL AND GOT TWO SUPER BOWL RINGS AND NONE OF THAT WOULD'VE HAPPENED. WE BASICALLY DEVISED WAYS AND MADE EVERY MISTAKE KNOWN TO MANKIND. WE FIGURED OUT WAYS TO PRACTICE AND PLAY GAMES. TIM: DID IT MAKE YOU THINK, DID IT FORM A REVIEW AT AN EARLY AGE OF ORGANIZED LABOR AND UNIONS FOR YOU? MICHAEL: I WILL DESCRIBE IT IN TWO WAYS. ONE IS A 16-YEAR-OLD -- THESE ARE TEACHERS. MY ENGLISH TEACHER PULLED ME ASIDE AND CALLED ME A SCAB. AS A 16-YEAR-OLD, IT WAS VERY ANTAGONISTIC. AS A 63-YEAR-OLD THAT WENT BACK AND DID RESEARCH AND SPOKE TO THE HEAD OF THE TEACHERS UNION, I HAVE A MUCH BETTER UNDERSTANDING OF WHY THEY DID IT, HOW THEY DID IT AND THE IMPORT OF WHAT THEY WERE FIGHTING FOR. AND I SAY, I HOPE WHEN PEOPLE READ THE BOOK IT -- TIM: DID IT TAKE YOU 40 YEARS TO COME TO THAT CONCLUSION? MICHAEL: 40 YEARS TO COME TO THE CONCLUSION ON HOW IT RELATES TO OUR SITUATION. IN PITTSBURGH YOU ARE ALWAYS MORE OF A UNION PERSON -- THAT HAS BEEN THE BACKBONE OF THE PITTSBURGH EXPERIENCE. AS IT RELATES TO WHAT WE WERE DOING, I DID NOT HAVE AN APPRECIATION AND I DO NOW. IT REGISTERED CURED I WENT BACK TO MY COACHES HOME AND HE HAS THE SAME HOME HE HAD. THE SAME PLACE WHERE WE USED TO SNEAK OVER TO HIS HOUSE TO MEET WITH HIM DURING THE SEASON. I SAID, COACH WALKER, TO WHOM I CROSSED -- TO WHOM I SPOKE WITH DURING THIS, HE DID NOT ABANDON US. WE WOULD SNEAK OVER TO HIS HOUSE AND THROUGH BACKYARDS INTO HIS BASEMENT ONCE A WEEK AND GET PLANS. AND THIS IS GOING TO SOUND -- AS A 16-YEAR-OLD YOU DON'T REALIZE THAT HE IS A HUMAN BEING AND HAS FOUR KIDS. HE SHOULD HAVE STRUCK. AND HE DID. IT IS A MUCH BETTER APPRECIATION UPON REFLECTION THAN A 16-YEAR-OLD KNUCKLEHEAD. CAROL: WHO SHOULD READ THIS BOOK? I THINK ABOUT CHALLENGES THAT KIDS ARE FACING RIGHT NOW WHETHER IT IS AI -- MICHAEL: I'VE BEEN CHALLENGED BY MY PUBLISHER THAT IT IS MORE THAN A FOOTBALL STORY. SHE SAID, THAT IS THE TRICK. IT HAS THINGS ABOUT PARENTING, RESILIENCY, OVERCOMING DISAPPOINTMENT. THERE IS A DISAPPOINTING END OF THE STORY. IT'S NOT HOLLYWOOD. IT IS DISAPPOINTING TO ME. I WILL SAY THE CLICHÉ -- MY NIECE READ IT TO HER EIGHT-YEAR-OLD FOR BEDTIME THE OTHER DAY. CAROL: COME BACK. MICHAEL: I WOULD LOVE TO. CAROL: I FEEL THERE ARE MORE LESSONS WE COULD LEARN. MICHAEL AT, AUTHOR OF STRIKE SEASON. >> THIS IS BLOOMBERG "BUSINESSWEEK DAILY" WITH CAROL MASSAR AND TIM STENOVEC ON BLOOMBERG RADIO AND TELEVISION. TIM: IT IS BLOOMBERG "BUSINESSWEEK DAILY." WE ARE LOOKING AT THE S&P 500. DOWN .2%. I'M GOING TO PUT THIS AT FIVE DAYS. UP .3% FOR THE S&P 500 THIS WEEK. CAROL: YOU ARE THINKING OF 4:00 AND 5:00 TONIGHT. TIM: MONTH TO DATE THOUGH WE ARE UP ON THE S&P 500. CAROL: IF YOU LOOK INSIDE THE S&P 500, I'D LIKE TO GET A FEEL OF WHAT IS GOING ON, 268 NAMES ARE HIGHER ON THE S&P 500. 235 TO THE DOWNSIDE. WE ARE GETTING READY FOR FED MINUTES NEXT WEEK AND WE HAVE NVIDIA EARNINGS. AND JACKSON HOLE IS THE WEEK. TIM: I'VE BEEN TALKING TO MIKE MCKEE ABOUT IT AND HE IS GETTING READY. CAROL: POLISHING HIS COWBOY BOOTS AND PULLING OUT THE HAT. WITH US IS BLOOMBERG NEWS EMILY GRAFFEO WITH STOCK MOVERS. I LOVE WHAT YOU ARE STARTING WITH. THIS NAME IS ON FIRE. NOT SO MUCH TODAY. >> SANDISK IS ON FIRE. LAST TIME I WAS IN HERE -- IT IS UP ALMOST 600% THIS YEAR. CAROL: IT GOES UP AND DOWN. EMILY: IT HAS BEEN ON AN INCREDIBLE TEAR BUT ALSO GOES UP AND DOWN. I'M LOOKING AT THE WRONG THING. IT IS UP ABOUT 7%, UP FOR A FIFTH STRAIGHT DAY RALLYING OVER 35% THIS WEEK, THE LARGEST GAIN SINCE JANUARY. WHAT NEW HERE IN THE MEMORY TRADE. J.P. MORGAN INITIATED COVERAGE. WITH AN OVERWEIGHT RATING THIS FOLLOWING THE FIRM'S INVESTOR DAY WHICH HAPPENED YESTERDAY. THEY ANNOUNCED A LONG-TERM FINANCIAL TARGETS THROUGH 2030 AND SEE REVENUE GROWTH IN THE MID TO HIGH TEENS. J.P. MORGAN SAID SANDISK IS IN MANY RESPECTS UNIQUELY POSITIONED TO CAPTURE THE ONGOING STRUCTURAL INFLECTION AND DEMAND DRIVEN BY RAPID GROWTH IN THE AI TRADE HERE. SO YEAH, THEY ARE LOOKING AT ANOTHER 47% INCREASE FROM THE LAST CLOSE OF THE STOCK. CAROL: IS THAT A LITTLE WEIRD -- TIM: IT HAS ONLY BEEN A STANDALONE PUBLIC COMPANY SINCE FEBRUARY OF LAST YEAR, THE WINTER OF LAST YEAR. CAROL: MAY BE GIVING IT SOME TIME TO SEE WHERE IT GOES. EMILY: IF WE PULL IT UP ON THE BLOOMBERG TERMINAL, 27 BUYS, FOUR HOLDS AND ZERO CELLS. USUALLY THE STOCKS THAT ARE VERY HEAVILY TRADED HAVE A COUPLE MORE RATINGS THAN THAT SO I GUESS SOME PEOPLE ARE JUST COMING ON NOW. TIM: HERE IS SOMETHING NOTABLE, A 36 HUNDRED DOLLARS TARGET PRICE ON THE STOCK. IT IS AT $1600 RIGHT NOW. WOW. THAT IS THE STREET HIGH. CAROL: YEAH. TIM: I KNOW. CAROL: THE STOCK IS THE NUMBER ONE S&P GAINER ON THE GEAR UP ALMOST 590 PERCENT. WE ARE GOING TO MOVE ON. LET'S TALK ABOUT READ IT. EMILY: IT IS UP ABOUT 12%. ADDING ALMOST $4 BILLION IN MARKET CAP. YESTERDAY AFTER THE CLOSE WAS ANNOUNCED IT IS BEING ADDED TO THE S&P 500 SO THIS IS A CLASSIC INDEX TRADE. IT WON'T BE ADDED TO THE INDEX FOR A FEW WEEKS AND WHEN THAT HAPPENS, TRILLIONS OF DOLLARS OF PASS IN FUNDS ALL HAVE TO BUY IT SO BEFORE THAT HAPPENS THAT FAST MONEY COMES IN, THE HEDGE FUNDS. THEY BUY IT FIRST IN THE HOPES THEY CAN SELL IT FOR A QUICK PROFIT. CAROL: THEY COULD USE A LITTLE HELP, THE SHARES OF REDDIT. TIM: DOWN 20% THIS YEAR, ROUGHLY. EMILY: THE S&P 500 COMMITTEE WAS READY TO EMBRACE IT. IT IS A BIG DEAL. TIM: I WOULD JUST LOVE TO KNOW WHAT WENT INTO WHY REDDIT. CAROL: THAT WOULD BE A GREAT SEGMENT. EMILY: THEY ARE HARD TO GET IN TOUCH WITH. SOMETIMES IT IS BASED ON THE SECTOR, THE SIZE. TIM: IT IS THAT $177 RIGHT NOW. WHEN IT WAS FIRST TRADING A LITTLE OVER TWO YEARS AGO, 30 FOUR DOLLARS. EMILY: TESLA. NOT A BIG MOVE BY A PERCENT CHANGE BUT IT IS HIGHER. THIS HEADLINE CAUGHT MY EYE, THAT EV MAKER IS PLANNING TO UNVEIL A NEW ROADSTER WITH FLYING CAPABILITIES OF THIS MONTH ACCORDING TO A REPORT. CAROL: YOU SAID FLYING AND ALL I CAN THINK OF IS DUMBO. YOU KNOW, THE ELEPHANT. TIM: ELON MUSK LAUNCHED A TESLA ROADSTER ON A SPACEX ROCKET. THERE IS ONE ORBITING RIGHT NOW. EMILY: THERE IS AN EVENT COMING UP AND WE WILL SEE A FLYING CAR, MAYBE. TIM: IT IS A FRIDAY. WE ARE TALKING ABOUT FLYING CARS. CAROL: AND IF IT IS ELON, DON'T MOVE A MUSCLE. I'M THINKING JETSONS, ELROY. WHAT WAS THE ROBOTS NAME? ROSE. CHECK OUT OUR STOCK MOVERS PODCAST. IT IS FRIDAY IN THE MARKET IS STILL TRADING WITH ANOTHER HOUR TO GO.