Bessent Faces G20 Credibility Test | Bloomberg Businessweek Daily 8/31/2026

>> THIS IS "BLOOMBERG BUSINESSWEEK DAILY," REPORTING FROM THE MAGAZINE THAT HELPS GLOBAL LEADERS TO STAY AHEAD WITH INSIGHT ON THE PEOPLE, COMPANIES, AND TRENDS SHAPING TODAY'S COMPLEX ECONOMY, PLUS GLOBAL BUSINESS, FINANCE, AND TECH NEWS AS IT HAPPENS. "BLOOMBERG BUSINESSWEEK DAILY" WITH CAROL MASSAR AND TIM STENOVEC, LIVE ON BLOOMBERG RADIO, TELEVISION, AND BLOOMBERG ORIGINALS. TIM: GOOD AFTERNOON, EVERYBODY. LIVE FROM THE "BLOOMBERG BUSINESSWEEK" STUDIO IN NEW YORK. WE ARE ON YOUTUBE, WE ARE ON RADIO. I'M TIM STENOVEC. THAT IS KRISTINE AQUINO, THE MANAGING EDITOR OVER AT THE LIVE BLOG, HANGING OUT WITH US TODAY, TOMORROW, MAYBE LATER THIS WEEK, TOO. WE ARE GLAD TO HAVE YOU CURED YOU CAN COMMIT AFTER TODAY'S SHOW. KRISTINE: WE WILL DECIDE TOMORROW. TIM: SHE'S IN FOR CAROL MASSAR. IT IS THE LAST DAY OF AUGUST, 2026. STOCKS AND BONDS LOWER, OIL HIGHER. SPEAKING OF GEOPOLITICS, ALL EYES ON ASHEVILLE, NORTH CAROLINA, WHERE THE G20 IS TAKING OFF. KRISTINE: YEAH. ABSOLUTELY. LOTS TO DISCUSS, OF COURSE, AND WE KNOW TREASURY SECRETARY SCOTT BESSENT IS GOING TO BE THERE. I'M SURE HE WILL GET A LOT OF QUESTIONS OVER FISCAL ISSUES AND WHAT U.S. INTERVENTION HAS BEEN LIKE AS OF LATE. TIM: YEAH. SHAWN DONNAN WILL BE JOINING US. HE HAS A GREAT PIECE ALL ABOUT THE TREASURY SECRETARY AND A CHALLENGE AFTER THIS INTERVENTIONIST SUMMER. KALSHI TOOK A HIT AFTER AN APPEALS COURT SAID SPORTS BETS ARE NOT SWAPS. WE HAVE THE FORMER CFTC COMMISSIONER BRIAN QUINTENZ JOINING US, WHERE IT GOES FROM HERE. THAT'S THE BIG QUESTION WE WILL POST TO HAVE CURED A BLOOMBERG EXCLUSIVE, NVIDIA'S JENSEN HUANG INTERVIEWED EARLIER BY ED LUDLOW, AND ED WILL JOIN US LATER. HERE HE IS, CHARLIE PELLETT. CHARLIE: THANK YOU, TIM AND KRISTINE. NVIDIA SHARES GAINING .9%, THE DOW, THIS IS, NASDAQ ALL DECLINING RIGHT NOW. THE NASDAQ 100 INDEX AND RUSSELL 2000 INDEX, SMALL CAPS SHARES. THIS AS OIL ADVANCES. OIL RALLIED BY 2.5 PERCENT. TALKING BRENT ABOVE $90, $90.30 ON BRENT CRUDE, WEST TEXAS INTERMEDIATE, $85.61, A BARREL NOW HIGHER BY 0.26%. A FLAREUP IN GEOPOLITICAL RISKS SENDING STOCKS LOWER. THOU INDUSTRIALS DOWN 3.16, A DROP OF .6%. NASDAQ COMPOSITE INDEX DOWN .3%, WHILE THE NASDAQ 100 AND NEXT DOWN BY .1%. THE STOCKS PUSHING HIGHER. THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX DOWN. THE TWO-YEAR 4.75%, AND THE 30-YEAR 5.25%. WILL MEANWHILE DOWN .5%, $44 34 THE BARREL, BY 4.26 PERCENT. EXXON MOBIL UP 2.2% TO CHEVRON UP BY 1.5%. CONOCOPHILLIPS UP BY 1.4%. RECAPPING, S&P LOWER BY .4%. TIM AND CHRISTINE, THAT IS A BLOOMBERG BUSINESS FLASH. TIM: CHARLIE, APPRECIATE THAT ON THIS MONDAY. WE WILL BE CHECKING WITH CHARLIE FOR THE LATEST ON MARKET AND BUSINESS NEWS. TREASURY SECRETARY SCOTT BESSENT, HIS SUMMER COME ALREADY FACING CREDIBILITY QUESTIONS, NOW FACING TESTS FROM GLOBAL FEARS GET AHEAD OF A MEETING FROM G20 FINANCE MINISTERS IN ASHEVILLE, NORTH CAROLINA, THE TREASURY SECTOR HAS DODGE CONVERSATIONS AMONG THE TOP POLICYMAKERS TO THE CORE SUBJECT OF BOOSTING GROWTH. SHAWN DONNAN JOINS US FROM OUR WASHINGTON, D.C. BUREAU. I LIKE TO GET TO WITH YOU. FIRST OF ALL, I WANT TO DRIVE EVERYBODY TO THIS STORY. IT'S A THING AHEAD OF THE G20 AND AS THE G20 HAPPENS. THE IDEA OF GROWTH HERE, HOW MUCH MORE CONFIDENT AS GROWTH IN THE U.S. IN THE FACE OF TARIFFS AND THE STRAIT OF HORMUZ, THAT IS NOT COMPLETELY REOPENED? SHAWN: YEAH. LOOK, SECRETARY BESSENT HAS GOT INTO THE MEETING STARTING TODAY IN ASHEVILLE, THAT WILL RUN THROUGH TOMORROW, AND HE REALLY WANTS TO GET THE WORLD ON HIS SIDE AND BUY INTO TRUMPONOMICS, THIS IDEA THAT DEREGULATION WILL GET TO STRONGER GROWTH. WE HAVE NOT FULLY SEEN THAT HERE IN THE U.S., BUT GLOBALLY WE'VE ALSO SEEING GROWTH TICK DOWN. AND IF YOU TALK TO PEOPLE OUTSIDE THE U.S., AND WE HEARD THIS DIRECTLY FROM THE GERMAN FINANCE MINISTER, HEADING TOWARDS THIS MEETING, THE REAL BIG THREATS TO GLOBAL GROWTH HAS BEEN THE IRAN WAR, THE ATTACK ON ENERGY PRICES, THAT THEY WAR THAT WAS LAUNCHED BY PRESIDENT TRUMP, ALONGSIDE THE ISRAELIS, AND ALSO TARIFFS, WHICH HAVE ACTED ON A KIND OF DAMPER ON GROWTH AROUND THE WORLD AND ALSO HERE IN THE UNITED STATES. SO, YOU KNOW, THE REST OF THE WORLD IS COMING TO TOWN, AND THEY ARE SAYING, OK, WE HAVE TO TALK ABOUT GROWTH AND DOING WHAT WE CAN TO BOOST GROWTH, BUT REALLY RIGHT NOW, LOOKING OUT AT THE WORLD, THE U.S. IS THE ONE SUPPLYING TWO BIG BREAKS ON GROWTH. THERE'S ONE OTHER SIDE TO IT, OF COURSE, THERE'S A HUGE AI INVESTMENT BOOM GOING ON IN THE UNITED STATES, AND THERE ARE CERTAINLY COUNTRIES OUT THERE BENEFITING FROM IT, ANYONE WHO EXPORTS CHIPS TO THE UNITED STATES, WHETHER TAIWAN OR SOUTH KOREA, THEY ARE REALLY BOOMING AS A RESULT, BUT THE BROAD STORY FOR MOST PEOPLE, THERE IS HIGH ENERGY PRICES, TARIFFS, AND THAT'S NOT GREAT FOR GROWTH. "BUSINESSWEEK -- KRISTINE: YEAH. SHAWN, I'M SURE THAT TREASURY SECRETARY WILL ALSO BE ASKED BY WHAT WE CALL THAT INTERVENTIONIST SUMMER, GIVEN THE TREASURY'S ROLE IN INTERVENTIONS AND OF COURSE THE MOST RECENT ANNOUNCEMENT FOR UPSIDE IN BUYBACKS. HOW DO YOU THINK THAT WILL BE RECEIVED AT THE G20, AND IS THIS SOMETHING THAT COULD RAISE SOME EYEBROWS AMONGST HIS CONTEMPORARIES, GIVEN THAT THIS IS PROBABLY THE MOST INVOLVE THE TREASURY HAS BEEN IN THESE MATTERS IN A WHILE, RIGHT? SHAWN: ABSOLUTELY. IT FEELS LIKE SCOTT BESSENT THIS SUMMER HAS KIND OF REWRITTEN WHAT THE TREASURY SECRETARY'S ROLE LOOKS LIKE, RIGHT? WE'VE CERTAINLY SEEN THE MOST INTERVENTIONIST TREASURY SECRETARY OUTSIDE OF A CRISIS IN A LONG TIME, AND IT IS VERY UNUSUAL FOR THE UNITED STATES TREASURY TO DIP INTO FOREIGN-EXCHANGE MARKET AND SUPPORT ANOTHER CURRENCY, RIGHT? IT IS INCREDIBLY UNUSUAL FOR THE TREASURY SECRETARY TO LOOK AT BOND MARKETS, TARGET LONG END YIELDS. WE SAW STAN DRUCKENMILLER WRITE AN OP-ED IN THE "WASHINGTON JOURNAL -- "WALL STREET JOURNAL," KIND OF SMACKING HIS MEN SEE, AND THEN YOU HAVE THIS -- HIS MENTEE. AND THEN YOU HAVE THE IRAN SITUATION, YOU ARE WITH US OR AGAINST US, AND WE WILL COME AFTER YOUR FINANCIAL INSTITUTIONS IF YOU ARE NOT WITH US, AND THREATENING TO KICK SYSTEMS OUT OF THE DOLLAR SYSTEM. EVERYONE ELSE IS COMING TO ASHEVILLE AND HAS LANDED THERE, CERTAINLY HAS ALL THAT IN MIND. TRY TO FIGURE OUT WHAT SCOTT BESSENT IS UP TO. THEY ARE ALSO LOOKING AT WHAT FEELS LIKE A DIVERSIONS AND GOALS BETWEEN SCOTT BESSENT AND KEVIN WARSH, THE NEW FED CHAIR. IT SEEMS LIKE SCOTT BESSENT WANTS TO SEE LOWER INTEREST RATES, AND WE KNOW, OF COURSE, THAT KEVIN WARSH ON FRIDAY WAS TALKING ABOUT INFLATION AND MAKING CLEAR THAT RAISING INTEREST RATES IS ON THE TABLE. THOSE ARE TWO DIAMETRICALLY OPPOSED GOALS. WE SHOULD SAY SCOTT BESSENT TODAY SPOKE WITH REPORTERS AND SAID THAT HE AND KEVIN WARSH ARE ON THE SAME PAGE. HE TRIED TO PLAY DOWN THOSE REPORTS. HE'S ALSO TRIED TO PLAY DOWN SOME OF THE INTERVENTIONS THAT HE'S DONE OVER THE SUMMER, BOTH IN TERMS OF THE YEN AND THE BOND YIELDS, BUT, YOU KNOW, THIS IS A VERY DIFFERENT LOOKING TREASURY SECRETARY, AND GOING INTO A MEETING TODAY THAT IS, WHEN YOU THINK ABOUT IT IN THE KIND OF LONG RUN, IS AN IMPORTANT ONE IN TERMS OF AMERICA AND ITS ABILITY TO PROJECT ECONOMIC POWER. HIS CREDIBILITY REALLY IS AT STAKE IN A VERY INTERESTING WAY IN THE NEXT FEW DAYS. TIM: CREDIBILITY, THOUGH, FOR WHOM? IS IT FOR U.S. INVESTORS, FOR G20 COLLEAGUES, OTHER FINANCE MINISTERS OF DEVELOPED NATIONS AROUND THE WORLD? WHO IS THE CREDIBILITY MOST AT RISK, WITH REGARD TO? SHAWN: YEAH. LOOK, I THINK WHAT WE SEE IN THE LAST FEW WEEKS HAS BEEN CREDIBILITY IN THE MARKETS, RIGHT? THAT'S THE LAST BIG QUESTION. THE YEN INTERVENTION ON FRIDAY, GO BACK TO BE 160 LEVEL THAT HAD TRIGGERED THE INTERVENTION IN THE FIRST PLACE. SO THE MARKETS HAVE NOT REALLY BOUGHT INTO THE RIGHT OF INTERVENTION. WE ARE SEEING THE SAME THING IN THE BOND MARKETS, RIGHT? WE SEE IN THIS PUSHBACK FROM STAN DRUCKENMILLER AND OTHERS, REALLY KIND OF RAISING THIS QUESTION OF WHAT THE TREASURY SECRETARY IS DOING. THE NEXT QUESTION IS THE KIND OF GEOPOLITICAL ONE, AND THAT IS, YOU KNOW, THE TREASURY SECRETARY IS A KEY ECONOMIC POLICY MAKER IN THE WORLD'S LARGEST ECONOMY. HE'S ONE OF THE MOST POWERFUL MEN IN THE WORLD. AND HOW HE PROJECTS THAT POWER AND HOW HE USES THAT POWER IN THE GLOBAL ECONOMY IS INCREDIBLY IMPORTANT. AND BEHIND ALL OF THAT IS THE QUESTION OF WHETHER YOU BELIEVE HIM OR NOT. WHEN HE SAYS THINGS. THAT IS THE CREDIBILITY QUESTION HERE. THEY ARE LOOKING AT THE BOND MARKET, THE CURRENCY MARKET, SAYING WELCOME OF THE MARKETS DO NOT SEEM TO BELIEVE HIM. NOW THEY ARE THINKING AHEAD OF THE GROWTH PEACE AND SAYING, HE WANTS MORE GROWTH, BUT LET'S TALK ABOUT WHAT THE U.S. IS ACTUALLY DOING HERE RATHER THAN WHAT IT IS SAYING. AND, YOU KNOW, COMING OUT OF THIS, LET'S SEE IF THEY HAVE ANY QUESTIONS ANSWERED. THERE'S A REAL RISK HERE THAT SCOTT BESSENT, YOU KNOW, OVER SHOOTS, AND THAT HE COMES OUT OF THIS WITH LESS CREDIBILITY THAN HE HAD GOING IN, AND THAT THAT HAS AN IMPACT ON AMERICA'S ABILITY TO PROJECT ITS ECONOMIC POWER AROUND THE WORLD. THAT IS SOMETHING WE ARE GOING TO SEE, SEE HOW IT PLAYS OUT IN THE COMING MONTHS. TIM: SHAWN DONNAN, BLOOMBERG NEWS SENIOR ECONOMICS WRITER DOWN IN WASHINGTON, D.C. THANKS FOR THE TIME. WALL STREET IS CERTAINLY SQUARELY FOCUSED ON THE LATEST OUT OF ASHEVILLE AND NORTH CAROLINA. ALSO FOCUSING ON WHAT IS HAPPENING WITH THE WORLD'S LARGEST ECONOMY BY MARKET CAP. THAT, OF COURSE, IS NVIDIA. THE COMPANY INVESTING $3.5 MILLION -- BILLION IN MEDIATECH COME AT A TIME WHEN IT IS WORKING TO PERSUADE MORE COMPANIES THAT BUILD CHIPS TO PLUG INTO DOMINANT ECOSYSTEMS. SEE OF JENSEN HUANG SAID ITS PARTNERSHIP IS A MASSIVE ENGINEERING REALIGNMENT OF THE FIRMS. HE SPOKE EXCLUSIVELY WITH BTV'S ED LUDLOW AND ANOTHER CEO, RICK TASAI. JENSEN: MEDIATECH IS ALREADY INCREDIBLY POPULAR, SUCCESSFUL. THEY MAKE MORE SOC'S THAN ANY COMPANY IN THE WORLD. THE GREAT PLEASURE FOR US TO INVEST IN A TECH COMPANY IN TAIWAN. IT IS A GREAT PLEASURE FOR US TO INVEST IN MEDIATECH. THE INVESTMENT IS GROUNDED ON A PARTNERSHIP THAT'S GOING TO SPAN MULTIPLE YEARS. RICK: I WANT IS ALMOST AT THE CENTER OF THE ECOSYSTEM, BUT WE ALSO WORK CLOSELY WITH OUR CUSTOMERS. IT IS TOUGH, BUT EVERY CEEO WILL DO THAT IN THE FUTURE. TIM: NVIDIA CEO JENSEN HUANG FOLLOWED BY MEDIATEK CEO RICK TSAI. ED LUDLOW DOING THOSE INTERVIEWS. THE CHIP FROM MEDIATEK, WHAT EXACTLY DOES IT DO AND HOW DOES IT FIT INTO THE ECOSYSTEM? ED: MEDIATEK IN TAIWAN IS ANALOGOUS WITH QUALCOMM, HISTORY WITH MODEMS, BUT THEY HAVE A PART OF THEIR BUSINESS THAT IS YOUNG AND MORE NASCENT FOR A SIX, CUSTOM CHIPS, JUST LIKE MARV L BROADCOM WORKS WITH HYPERSCALERS IN FRONTIER LABS TO HELP THEM DEVELOP THEIR OWN SHIPS. SO WHAT NVIDIA HAS DONE IS MAKE AN INVESTMENT TO MEDIATEK THROUGH THE PURCHASE OF THESE CONVERTIBLE BONDS. 3.5 BILLION DOLLARS DOES NOT SOUND LIKE A LOT BUT IT IS NVIDIA'S BIGGEST EVER NON-US INVESTMENT. THEY AGREED TO BASICALLY PACKAGE THOSE TECHNOLOGIES TOGETHER. IF MEDIATEK HAS A CUSTOM CHIP CUSTOMER, THEY BASICALLY GO TO THEM AND SAY, HERE IS A WAY THAT YOU CAN TAKE THAT CUSTOM CHIP AND JUST DROP IT INTO A DATA CENTER, EVERYTHING ELSE IS NVIDIA. SO THE CONCLUSION THAT NVIDIA HOPES EVERYONE COMES TO IS NVIDIA CONTINUES TO GROW EVEN IN A WORLD WHERE PEOPLE ARE USING CHIPS NOT MADE BY NVIDIA, BECAUSE NVIDIA DOES NOT JUST TO THE CHIPS, THEY DO EVERYTHING ELSE INSIDE THE DATA CENTER NOW, TOO. KRISTINE: YEAH. A VERY INTERESTING POINT, BECAUSE THIS DEAL MAKES IT SEEM LIKE A REALLY WANTS TO EMBED ACROSS THE ENTIRE DATA CENTER. IS THIS ABOUT SHIFTING THE MOAT, TOO MUCH BROADER ECOSYSTEMS FOR NVIDIA? ED: YEAH. INTERESTING EARLIER CONVERSATION IS JENSEN HUANG JUST ADMITS THAT CUSTOM SILICON IS HERE, RIGHT? HE CALLS THEM XP YOU'S, BUT OTHERS HAVE CALLED THEM A SSICS O R CUSTOM CHIPS. THEY ARE ALREADY HERE. IT'S HARD TO MAKE IT REALLY GOOD ACCELERATOR FROM RUNNING AI TO INFERENCE. IT'S HARDER STILL TO GET EVERYTHING THAT GOES INTO A DATA CENTER. YOU LOOK AT CABINETS, NVIDIA IS ALREADY PERVASIVE IN THAT. SO LITERALLY WHAT THEY ARE PITCHING IS THE WAY THAT LOTS OF DIFFERENT SERVERS SPEAK TO ONE ANOTHER, MD LINK. RIGHT NOW, THOSE LINKS ARE DOING SERVICE WITH ANOTHER SET OF SERVICES, AND ALL OF NVIDIA IS GREASING THE WHEELS FOR AS A WORLD WE HAVE A DATA CENTER, THE SERVICE CENTERS HAVE GPU'S IN THEM, BUT NOW YOU WILL DROP OTHER SERVERS AND THEY ARE BASED ON HIS OTHER CUSTOM CHIPS. BECAUSE NVIDIA HAS GOT THAT DOWN, IT IS QUITE ATTRACTIVE TO THOSE WORKING ON CUSTOM CHIPS. THEY DON'T HAVE TO GO OUT AND READ THE DATA CENTER TO MAKE THE CHIP WORK CAROL: CUSTOM IS HERE, BUT WHAT IS THE COMPETITION LANDSCAPE FOR THAT AT THE MOMENT? WE KNOW COMPANIES LIKE BROADCOM AND MARBELLA ARE COMPETING FOR THAT BUSINESS. ED: EXACTLY. THE PITCH FOR A CUSTOM CHIP, LET'S CALL IT A CUSTOM ACCELERATOR, IS THAT IF YOU DESIGN A CHIP DELIBERATELY TO RUN A SPECIFIC AI WORKLOAD, THE ECONOMICS OF THAT PLATFORM ARE OFTEN BETTER ON A DOLLAR PER TOKEN BASIS OR ENERGY CONSUMPTION BASIS. THAT IS THE IDEA. EVERYONE RANGING FROM OUR TEAM AT BLOOMBERG INTELLIGENCE, WE ACCEPT THE NVIDIA IS IN THE WORLD NOW, WHERE THE FUTURE GROWTH WILL BE IMPACTED BY VARIETY, OPTIONS. NVIDIA IS DIGGING IN. THEY CONTINUE THE IDEA THAT THE ECONOMICS ARE NOT AS GOOD AS THE EXISTING NVIDIA TECHNOLOGY. IT IS PERVASIVE AND WIDESPREAD AND REAL. THERE WAS A LITTLE SHADE THROWN BY JENSEN HUANG WHEN HE WAS LIKE SURE, I KNOW ALL THE CUSTOM CHIPS BEING ANNOUNCED, BUT I ALSO KNOW THE PROJECTS THAT ARE BEING CANCELED BECAUSE IT IS A HARD THING TO DO. HIS FORECAST IS THAT THE FRONTIER LABS, EACH LAYER OF THE AI STACK, MOST PEOPLE WILL CONTINUE USING NVIDIA. SO INTERESTING ON A DATE WHEN THERE IS PRESSURE IN THE EQUITY MARKET TO SEE NVIDIA SHARES A LITTLE HIGHER. THERE IS CERTAINLY SOME MOMENTUM CARRYING THROUGH FROM HER EARNINGS IN THE CONTEXT OF NVIDIA DIGGING INTO ITS POSITION. TIM: WE HAVE ABOUT 40 SECONDS LEFT. IN TERMS OF WHERE NVIDIA HAS INVESTED, NOT NECESSARILY OUTSIDE OF ITS CORE COMPETENCY, BUT SPACEX, INTEL, SOME NOKIA I RECALL. SHOULD WE EXPECT MORE, AND WHERE? ED: IN THIS CONTEXT,, MEDIATEK IS A PARTNER. THEY WILL SEE A BIG FINANCIAL RETURN. IT IS IN LINE WITH THE TRENCHES OF A COUPLE BILLION DOLLARS THAT NVIDIA HAS DONE ALL ACROSS THE AI ECOSYSTEM. PROVIDING CAPITAL TO MAKE THINGS HAPPEN. THAT IS WHAT THEY WOULD ARGUE. TIM: ED LUDLOW, THE HOST OF BLOOMBERG TECH. CHECK OUT MORE OF HIS INTERVIEW WITH JENSEN ON THE BLOOMBERG TERMINAL. COMING UP NEXT, IT IS THE FIRST MAN BY A CALL SHE. WE WILL JOIN -- WE WILL BE JOINED BY A FORMER CT FC COMMISSIONER, NEXT. ♪ CHARLIE: WE CHECK MARKETS ALL DAY LONG. WE ARE KEEPING AN EYE ON AMAZON SHARES, DOWN BY 3% AFTER THE WALL STREET JOURNAL REPORTED THAT THE FEDERAL TRADE COMMISSION PLANS TO FILE A LAWSUIT AGAINST THE E-COMMERCE GIANT, ALLEGING THE COMPANY MANIPULATED PRICES THAT BUSINESS IS PAID, TO ADVERTISE ON THE RETAIL PLATFORM. AMAZON SHARES DOWN BY 3%. STAY WITH BLOOMBERG FOR THE LATEST. THE DOW, THE S&P AND THE NASDAQ ARE ALL LOWER. GEOPOLITICAL RISK SENT STOCKS AND BONDS LOWER. THE S&P DOWN BY ABOUT .4%. WE HAVE THE DOW DOWN BY ABOUT SIX -- DOWN BY ABOUT .6%. THE NASDAQ, A DROP OF .3%. THE VIX IS HOLDING JUST ABOVE 15 RIGHT NOW. THE PHILADELPHIA STOCK EXCHANGE SEMICONDUCTOR INDEX IS UP .4%. THE THIRTY-YEAR IS AT 5.2 5%. GOLD IS DOWN .5%, WHILE WEST TEXAS INTERMEDIATE CRUDE, UP BY 2.9%. AGAIN, AMAZON SHARES ARE TRADING LOWER, BY 3% AFTER THE WALL STREET JOURNAL REPORTED THAT THE FEDERAL TRADE COMMISSION PLANS TO FILE A LAWSUIT AGAINST THE E-COMMERCE GIANT. FOR ON DEMAND NEWS, SUBSCRIBE TO BLOOMBERG NEWS NOW, WHEREVER YOU GET YOUR PODCASTS. THAT IS OUR BLOOMBERG BUSINESS FLASH. TIM: A LOT GOING ON IN PRODUCTION MARKETS. GEORGE SANTOS WON'T BE ABLE TO PLACE ANOTHER WAGE OR ONCOLOGY AFTER HE WAS BANNED FOR AFTER LITERALLY MANIPULATING THE MARKETS. THE FORMER HEAD OF POLICY FOR A16 CRYPTO, HE IS NOW ADVISING FINANCE IN TECH COMPANIES AND IS A BOARD MEMBER AT KALSHI EXCHANGE. IT IS A POSITION HE HAS HELD SINCE 2021, AND HE JOINS US IN THE BUSINESSWEEK STUDIO. BRIAN: THANKS FOR HAVING ME. TIM: THIS IS THE FIRST SUCH FINE ON KALSHI. WHAT DOES IT TAKE TO GET BANNED BY THE PLATFORM? BRIAN: WHAT WE SAW WAS A DELIBERATE LACK OF COOPERATION. IT IS ONE THING TO VIOLATE THE RULES. YOU ALWAYS WANT TO SEE IN EXCHANGE ENFORCE THOSE RULES. WE CAN'T LIVE IN A MINORITY REPORT SOCIETY, WHERE WE JUST EXPECT NOTHING BAD TO EVER HAPPEN. SOMETHING BAD WILL HAPPEN AND IT IS IMPORTANT THAT THE EXCHANGE PROSECUTES THAT, FINDS IT, IT REFERS IT TO THE CFTC. IN THIS CASE WHAT WE SAW WAS A COMPLETE LACK OF COOPERATION AFTER BEING CAUGHT. IF YOU ARE NOT GOING TO RESPECT THE ENFORCEMENT PROCESS AFTER YOU'VE BEEN CAUGHT, WHY SHOULD WE THINK THAT YOU ARE GOING TO RESPECT THE MARKET INTEGRITY IF YOU ARE ALLOWED TO TRADE AGAIN? IN THIS CASE, I THINK A LIFETIME BAN WAS APPROPRIATE. MORE EXAMPLES WE SEE OF THESE THINGS HAPPENING, HOPEFULLY MORE OF A PROPHYLACTIC IMPACT IT WILL HAVE TO TWO PREVENTED FROM HAPPENING IN THE FUTURE. >> HOW EFFECTIVE DO YOU THINK IT IS GOING TO BE AS A PRESIDENT? IT'D SENDING A STRONG ENOUGH SIGNAL TO OTHER POTENTIAL WHO MIGHT -- OTHER POTENTIAL PEOPLE WHO MIGHT ATTEND SOMETHING LIKE THIS? DO YOU THINK THEY WILL HAVE A PAUSE AFTER THIS? BRIAN: AS A FORMER REGULATOR, AND PART OF THE CALL SHE EXCHANGE BOARD, YOU NEVER WANT TO SEE BAD THINGS HAPPEN, LIKE PEOPLE VIOLATING THE RULES OR UNETHICAL PEOPLE TRYING TO COMPROMISE INTEGRITY. THE REALITY IS IT HAPPENS. THE FLIPSIDE TO HAVING THESE THINGS REPORTED ON, POSSIBLY INDICATING SOME KIND OF NEGATIVE ISSUE WITH THE MARKET IS THAT THEY ARE BEING CAUGHT, AND THEY DO PROVIDE THAT STORY THAT IF YOU DO SOMETHING BAD, WE ARE GOING TO COME AFTER YOU. TIM: FROM A CIVIL PERSPECTIVE, NOT A CRIMINAL PERSPECTIVE. BRIAN: CALL SHE CAN ENFORCE THE ROLES ON ITS OWN EXCHANGE. IT WOULD BE UP TO THE DOJ TO PROSECUTE CRIMINALS. TIM: DO YOU THINK WE SEE THAT? BRIAN: IT IS POSSIBLE. IT ALWAYS DEPENDED ON THE IMPACT OF THE BEHAVIOR. TIM: MEANING THE NUMBER OF PEOPLE AFFECTED, THE AMOUNT OF MONEY, THAT SORT OF THING? BRIAN: EXACTLY. FRAUD IS A LOT EASIER TO PROSECUTE THAN MANIPULATION, BUT CERTAINLY MANIPULATION CASES HAVE BEEN BROUGHT BY THE DOJ. TIM: SO CALL SHE WOULD REFER TO THE CFTC AND THEY WOULD DECIDE WHETHER OR NOT TO REFER IT TO THE DOJ. BRIAN: CORRECT. TIM: I WANT TO TALK ABOUT SOME OTHER NEWS WE GOT. THIS IS THE NINTH OPINION ON FRIDAY. CALL SHE TOOK A HIT WHEN THE U.S. COURT OF APPEALS SAID THAT SPORTS PETS ARE NOT SWAPS. HERE IS WHAT THE JUDGE SAID QUOTE, FOR POLICY TO DENY THAT SPORTS EVENT CONTRACTS ARE SPORTS BETS UNDER A REASONABLE PERSON'S UNDERSTANDING IS DISINGENUOUS. THAT SPORTS EVENTS CONTRACTS ARE IN REALITY SPORTS BETS IS NOT JUST A KNOW -- JUST A I KNOW IT WHEN I SEE IT, BUT RATHER EVERYONE KNOWS IT INCLUDING CALL SHE. HOW DO YOU RESPOND? BRIAN: I THINK THE NINTH CIRCUIT OPINION PROVIDED MORE CONFUSION THAN CLARITY. IF YOU LOOK AT THE ISSUE AND WHAT THE CASINO INDUSTRY AND THE STATES THAT HAVE ALLIED WITH THEM IN PROSECUTING THESE CASES HAVE CHARGED OR CLAIMED, IT IS THAT STATES CAN CONTROL OR DICTATE WHAT KIND OF CONTRACTS ARE LISTED ON FEDERALLY RELATED EXCHANGES, AND THE U.S. LAW DOES NOT PREEMPT THAT. THESE EVENTS AREN'T ACTUALLY EVENTS, AND THEREFORE DO NOT QUALIFY AS SWAPS. THE INTERESTING THING ABOUT THE NINTH CIRCUIT OPINION IS ON THAT FIRST POINT, IT AGREED WITH THE THIRD CIRCUIT WHICH RULED IN KALSHI'S FAVOR. THAT THE COMMODITY EXCHANGE ACT DOES PREVENT STATES FROM REGULATING OR DICTATING WHAT KINDS OF CONTRACTS CAN BE LISTED ON FEDERALLY REGULATED EXCHANGES. BUT IT MADE THE CONFUSING DETERMINATION, THAT WHETHER OR NOT THE SUPER BOWL OCCURS IS AN EVENT, BUT WHO WINS IS NOT. I CAN'T NECESSARILY COMPORT THOSE THINGS. ULTIMATELY THIS IS GOING TO COME DOWN TO THE SUPREME COURT, AND IT WILL BE AN ISSUE THAT REQUIRES THEIR INTELLECTUAL FIREPOWER AND PATIENCE AND ATTENTION TO THE LAW, AS OPPOSED TO WORKING BACKWARD FROM RESULTS. >> ONE OF THE QUESTIONS THE DECISION BRINGS UP IS WHETHER IT DOES UNDERMINED THE FOUNDATION FOR SPORTS MARKETS, MAKING A DETERMINATION BETWEEN SPORTS BETS AND DISTINCTION THEM FROM SWAPS. BRIAN: I VIEW BETTING IS SOMETHING YOU DO AGAINST THE HOUSE. THE HOUSE ALWAYS WINS, IT SETS THE ODDS, THEIR INCENTIVES CONFLICT WITH CUSTOMERS. NOT A MARKETPLACE WHERE TRADERS ARE ENGAGING WITH EACH OTHER AND THERE ARE MARKET PRICES FOR OUTCOMES. I THINK THE OTHER IMPORTANT THING TO MENTION IS THAT STATES AND CASINOS ARE PURSUING A ZERO-SUM OUTCOME. THEY ARE SAYING THAT THE ONLY PLACE THESE KINDS OF FINANCIAL ACTIVITIES CAN KINDS OF FINANCIAL ACTIVITIES CAN OCCUR IS IN A CASINO OR A STATE REGULATED SPORTS BOOK. KALSHI IN THE CFTC ARE SAYING, THAT IS FINE, YOU CAN DO THAT, BUT IF THEY ALSO QUALIFY AS DERIVATIVES, THEY CAN BE LISTED SUBJECT TO CFTC RULES. TIM: IT SEEMS LIKE IT IS A REAL HEADACHE FOR EVERYONE EXCEPT THE LAWYERS WORKING ON IT. [LAUGHTER] TRULY IT SEEMS LIKE A GAME OF WHACK-A-MOLE BETWEEN KALSHI AND STATES THAT ARE COMING UP WITH THIS, WORKING ON THE CASES. DO YOU GUYS EVER TALK ABOUT SAYING, OK, WE WILL PUT SPORTS ON THE BACK BURNER, BECAUSE IT IS SO CONTENTIOUS, AND WE WILL FOCUS ON EVERYTHING ELSE? BRIAN: I THINK THE THING I THINK ABOUT IS, WHAT IS THE LAW ALLOW FOR AND WHY? THE LAW WAS WRITTEN VERY DELIBERATELY TO SAY THAT AN EVENT THAT HAS ANY FINANCIAL COMMERCIAL OR ECONOMIC CONSEQUENCE CAN HAVE A VALID DERIVATIVE LISTED ON IT, BECAUSE IT POSES RISK, AND THE WHOLE PURPOSE OF DERIVATIVE MARKETS IS TO ALLOW FOR RISK MANAGEMENT. I THINK ONE OF THE POINTS OF YOUR QUESTION IS THAT IT IS A PERCEPTION ISSUE, AND I THINK THAT IS WHAT THE QUOTE THAT YOU JUST READ FROM THE JUDGE KIND OF INDICATED. BUT IF YOU GO BACK IN TIME, YOU KNOW, QUORUM CONTRACTS WERE TRADED IN BUCKET SHOPS IN CHICAGO, AND THEY SUED WHEN CORN CONTRACTS ULTIMATELY GOT LISTED ON FEDERAL EARLY -- FEDERALLY REGULATED SYSTEMS, AND THEY CALLED IT GAMBLING. WHEN YOU BRING ON A SECULAR EARLY REGULATED EXCHANGE THAT POSES A THREAT TO THAT BUSINESS MODEL, YOU WILL SEE THESE. KRISTINE: DO YOU THINK THE DECISION ULTIMATELY BELONGS TO THE CFTC? WHAT WOULD CONSTITUTE AS ECONOMIC OR USEFUL ENOUGH TO BELONG UNDER THEIR JURISDICTION AS OPPOSED TO WHAT IT CURRENTLY IS? BRIAN: I BELIEVE SO. I BELIEVE THE CFTC IS THE ULTIMATE ARBITER AS TO WHAT CAN QUALIFY AS AN EVENT, AND THERE HAS NEVER BEEN KIND OF A, YOU KNOW, SUFFICIENCY TEST OF ECONOMIC VALUE, FOR ANY DERIVATIVE. AND THE LAW WAS WRITTEN VERY BROADLY TO ALLOW FOR THE, BECAUSE IT INCENTIVIZED INNOVATION OR EXCHANGES. AND THERE ARE THOUSANDS OF PRODUCTS LISTED BY EXCHANGES THAT DON'T GET LIQUIDITY AND THAT ULTIMATELY GET DELISTED. TIM: YOU KNOW, A LOT OF STATES RESTRICT SPORTS BETTING TO 21 AND UP. BECAUSE SHE AND OTHER PLATFORMS MAKE IT AVAILABLE AT 18. WE DID SEE ANALYSIS FROM CNN THAT SAID THEY HAVE TRADED 5.4 BILLION DOLLARS ON KALSHI JUST SO FAR THIS YEAR. IT WOULD BE RESTRICTING TO AGE 21 AND UP. WOULD KALSHI CONSIDER FOLLOWING THAT? BRIAN: I CANNOT SPEAK FOR THE FOUNDERS OR THE BOARD AT THE COMPANY LEVEL ON THAT. I THINK THAT IS A GOOD CONVERSATION YOU HAVE INTERNALLY. I WILL KNOW YOU DID SAY NOT ALL STATES ARE UNIFORM IN HOW THEY APPROACH THAT AGE LIMIT, AND A LOT OF STATES MADE THAT DECISION BECAUSE YOU COMBINE CASINOS WITH LIQUOR. AND THE DRINKING AGE IS 21, THEREFORE TO ENTER INTO A CASINO AND GAMBLE IS THEREFORE 21. BUT STATES LIKE RHODE ISLAND, D.C., WHERE I LIVE, MONTANA, WYOMING, ALL HAVE AN 18 PLUS-YEAR-OLD THRESHOLD FOR THAT, SO IT IS NOT UNIFORM RIGHT NOW. KRISTINE: YEAH. ONE OF THE OTHER THINGS I WANT TO ASK AS WELL ARE MENTIONED MARKETS RIGHT? THIS IS WHERE, YOU KNOW, USERS CAN PLACE WAGERS ON WHETHER PUBLIC FIGURES WILL SAY CERTAIN WORDS OR PHRASES IN SPEECHES. WE DID GET AN INSIDER PROBE RELATED TO, YOU KNOW, BETTING ON PRESIDENT TRUMP'S SPEECHES. WHAT YOU THINK OF THIS AREA? IS IT SOMETHING THAT SHOULD BE REINED IN AND CAN BE REINED IN AT THIS POINT? BRIAN: I THINK THE BREADTH OF THESE MARKETS REFLECTS THE BRUNT OF THE LAW, AND SO, YOU KNOW, IF THEY NEED TO BE REINED -- IN MY VIEW, IT IS UP TO CONGRESS TO DECIDE WHERE THAT LINE SHOULD BE DRAWN. THE REGULATOR MIGHT BE ABLE TO TRY, BUT I THINK IT MIGHT BE HARD TO DO THAT IN WHEN IT IS NOT ARBITRARY AND CAN, STANDARD UNDER THE ADMINISTRATIVE PROCEDURES ACT AND HOW HE CAN MAKE DECISIONS. BUT, YOU KNOW, TO YOUR POINT, I THINK WHEN THE FED CHAIRMAN HAS A NEWS CONFERENCE, THE ENTIRE STOCK MARKET TURNS INTO A MENTIONED MARKET. SO IT IS THE CASE THAT PEOPLE THAT SAY CERTAIN THINGS IN A HIGH VELOCITY WAY CAN HAVE A FINANCE COMMERCIAL ECONOMIC IMPACT, AND WORDS THEY USE AND WHAT THEY TALK ABOUT, AND ULTIMATELY, YOU KNOW, THESE MARKETS ARE GAUGES. THEY ARE GAUGES OF OPINION, OF SENTIMENT, AND THEY PROVIDE USEFUL DATA, IN MY MIND, IN TERMS OF WHAT THE IMPACT OF MENTIONING CERTAIN THINGS ARE. AS PRESIDENT TRUMP ONLY MENTIONED IRAN ONLY ONE TIME IN A NEWS CONFERENCE AS OPPOSED TO THE PRIOR TIME WHERE HE MENTIONED THAT 10, DOES THAT INDICATE ANYTHING? AND HE MENTIONS IT ZERO TIMES IN THE NEXT PUBLIC APPEARANCE, DOES THAT MEET HAVE A CORRELATION THAT NEEDS TO BE PAID ATTENTION TO? ULTIMATELY, IT IS HARD TO DRAW LINES BETWEEN THIS SPACE. I LIKE TO START BROADER THEM NARROWER. TIM: BRIAN QUINTENZ, THANK YOU, A BOARD MEMBER OF KALSHI EXCHANGE, A FORMER COMMISSIONER OF THE CFTC, HE JOINS US IN THE "BLOOMBERG BUSINESSWEEK" STUDIO. COMING UP NEXT, RHEINGOLD JOINS US FROM OUR DEALS TEAM. ♪ CHARLIE: 2:40 ON WALL STREET. WE DO CHECK MARKETS ALL DAY LONG HERE AT BLOOMBERG. WITH THE DOW, S&P, NASDAQ ALL IN THE RED. AS A BEING CLOSE TO SESSION LOWS, DOWN 40 POINTS, 7671. THAT'S A DROP OF .5%. A FLARE OFF IN GEOPOLITICAL RISKS SENDING STOCKS AND BONDS LOWER. OIL IS CLIMBING. THAT IS RAISING CONCERNS ABOUT INFLATIONARY PRESSURES THAT COULD MAKE THE FED RAISED RATES. THE S&P AGAIN DOWN .5%. NASDAQ COMPOSITE DOWN 137. NASDAQ LOWERED BY .5%. 2-YEAR YIELDS, 4.3 4%, 10-YEAR 4.75%. THE 30-YEAR, 5.25%. GOLD, $4429 THE OUNCE. WEST EXIT -- WEST TEXAS INTERMEDIATE CRUDE CLOSING IN ON $86 A BARREL, UP 3%. BRENT, $90.57 A BARREL COME UP BY 2.8%. ELI LILLY PLANS TO BUY MERIDA FOODS FOR $2.8 BILLION TO EXPAND AUTOIMMUNE DISEASES. EXPANDING BE THE WEIGHT LOSS AND DIABETES MARKETS THAT HAVE MADE IT THE LARGEST PHARMACEUTICAL COMPANY IN THE WORLD. AMAZON SHARES NOW TRADED DOWN BY 3.2%. THIS AFTER THE "WALL STREET JOURNAL" REPORTED THAT THE FEDERAL TRADE COMMISSION PLANS TO FILE A LAWSUIT AGAINST THE E-COMMERCE GIANT TODAY, ALLEGING THAT THE COMPANY MANIPULATED PRICES THAT BUSINESSES PAID TO ADVERTISE ON ITS VIDEO PLATFORM. FOR ON-DEMAND NEWS 24 HOURS A DAY, SUBSCRIBE TO BLOOMBERG NEWS NOW WHEREVER YOU GET YOUR PODCAST. I'M CHARLIE PELLETT. TIM AND KRISTINE, THAT'S A BLOOMBERG BUSINESS FLASH. TIM: THANK YOU. PRIVATE JETS ARE GETTING BIGGER ABOUT THE AIRPORT IS NOT COME UNTIL NOW. MORE VALUE IN A CORNER OF AVIATION ONCE REGARDED AS JUST A SERVICE BUSINESS FOR PRIVATE JETS. RYAN GOULD IS BLOOMBERG'S DEALS REPORTER AND JOINS US FROM OUR WASHINGTON, D.C. EURO. I WANT TO START WITH ATLANTIC AVIATION. . FOR PEOPLE WHO ARE NOT FAMILIAR WITH WHAT IT DOES AS A SERVICE, RYAN, WHO ARE THEY, WHAT ARE THEY DOING? RYAN: GOOD TO BE WITH YOU, TIM. THINK OF IT AS A PRIVATE JET TERMINAL. IF YOU HAVE A PRIVATE JET, YOU NEED TO TAKE OFF AND LAND FROM SOMEWHERE, AND GENERALLY, NINE TIMES OUT OF 10, THOSE WILL BE MAJOR AIRPORTS LIKE NEW YORK, JFK, OR LAGUARDIA HERE IN NEW YORK. THESE ARE GOING TO BE MORE PRIVATE RESULT AIRPORTS, TETERBORO BE IN ONE, THEY ESSENTIALLY ALLOW YOU TO FUEL UP YOUR PLANE, TAKE ON THE FOOD THAT YOU NEED -- FUEL YOU NEED, A MUCH SMALLER FOOTPRINT. ATLANTIC HAS BEEN OWNED BY KKR FOR 20 YEARS NOW. THEY JUST RECENTLY COMPLETED A DEAL TO SELL CONTROL OR CO-CONTROL TO APOLLO. HERE YOU HAVE TWO OF THE LARGEST CAPITAL PROVIDERS ON WALL STREET DIGITALLY COMING TOGETHER HERE TO PUT WHAT IS ANOTHER ROUND OF FRESH CAPITAL INTO THIS BUSINESS TO GROW IT BEYOND WHAT IT IS HOPING IS GOING TO BE MORE THAN $10 BILLION OF VALUATION. KRISTINE: BREAK DOWN THE DEAL FOR US, BECAUSE THIS IS QUITE A JUMP IN THE EVALUATION. SO, ATLANTIC WAS BOUGHT BY KKR FOR $4.5 BILLION, NOW APOLLO IS BUYING FOR CONTROL OF NEARLY A $10 BILLION VALUATION. WHAT'S WITH THE ENORMOUS INCREASE IN VALUE? WHAT DID KKR ACTUALLY DO OPERATIONALLY TO TURN BUSINESS INTO WHAT IT IS? IT IS NOW A NATIONAL INFRASTRUCTURE PLATFORM. RYAN: YEAH. TOTALLY. THIS IS ESSENTIALLY A PRIVATE REAL ESTATE STORY, DISGUISED AS A PRIVATE JET STORY. KKR WAS ESSENTIALLY A BOARD OF BUSINESSES LOCALLY MANAGED. AROUND 67 LOCATIONS. FAST FORWARD TODAY, THERE ARE 108 LOCATIONS. THIS IS ALSO AN LAID IT OUT HERE AND WHAT YOU SEE IS KKR ACQUIRED A TON OF OTHER OPERATIONS IN AIRPORTS AROUND THE UNITED STATES, BRING THEM TOGETHER AND BUILD UP THAT BACK OFFICE. THINK OF THINGS LIKE PROCUREMENT, FUEL HANDLING, EVEN JUST HOW MANY ENGINEERS IT TAKES OR HOW MANY SERVICES IT TAKES FOR ONE AIRCRAFT. THEY BUILT A PROPRIETARY OPERATING SYSTEM. THEY PUT THE NUTS AND BOLTS ALTOGETHER AND NOW YOU CAN SEE AT ONE GLANCE ON A MAP WHERE YOU'VE GOT PLANES TAKING OFF FROM, WHERE THEY ARE COMING IN, HOW LONG THEY WILL BE ON THE GROUND. PLANES GENERALLY ONLY MAKE MONEY WHEN THEY ARE IN THE AIR. TIM: LAST WEEK, WE HAD THE U.S. PRESIDENT OF VISTAJET. SHE TALKED ABOUT DEMAND FOR THE SERVICE GROWING, NOT JUST IN THE U.S. BUT AROUND THE WORLD. WE ALSO SAW A REPORT THAT THE CANADIAN BUSINESS JET MAKER WANTS TO EXPAND MANUFACTURING CAPABILITIES, BECAUSE DEMAND IS SURPASSING EXPECTATIONS. ALL OF THIS TO SAY THAT THE PRIVATE JET INDUSTRY IS ABSOLUTELY SOARING RIGHT NOW. RYAN: THAT IS ONE THING THAT THE ATLANTIC CEO SAID TO ME IN AN INTERVIEW, NO ONE IS REALLY BUILDING THESE AIRPORTS AROUND THE UNITED STATES NOW. PALM BEACH AIRPORT IS ITS OWN SPACE, BUT THESE SITES AREN'T GETTING BIGGER. PUT THAT TOGETHER WITH A PRIVATE JET ECONOMY THAT IS BALLOONING, THINK ABOUT SOME OF THESE STATISTICS. GLOBAL BUSINESS JET DEPARTURES ARE UP 5% OVER THE PAST 12 MONTHS. I THINK COMBINED ORDER BACKLOGS ARE SOMEWHERE IN THE REGION OF $60 BILLION. THE FLEET IS EXPANDING, BUT THERE IS NOWHERE ELSE TO PUT THESE PLANES, UNLESS YOU ARE DOING THINGS LIKE KNOCKING DOWN EXISTING OLDER TERMINALS AND BUILDING THEM OUT TO TAKE ADVANTAGE OF EXISTING FOOTPRINT. KRISTINE: TAKING A LOOK AT ATLANTIC, GATEWAY TO MANHATTAN, THEY ALSO HAVE LOCATIONS IN LAS VEGAS, FLORIDA, ASPEN. THESE ARE DESIRABLE LOCATIONS. DO WE FORESEE HOW THIS DEVELOPS, IS THIS SOMETHING THAT MOSTLY WILL BE CONTAINED WITHIN THESE DESIRABLE DESTINATIONS, OR COULD THIS SHIFT THE BUSINESS MODEL AND THE LANDSCAPE, TO TURNING A NOT SO DESIRABLE LOCATION INTO SOMETHING MORE DESIRABLE? RYAN: I THINK SO. YOU THINK ABOUT SOME OF THE HEADWINDS WE HAVE -- THE INDUSTRY FACED DURING THE COVID PANDEMIC, WHEN COMMERCIAL AIRLINES LARGELY SHUT DOWN OR HAD VERY LOW PASSENGER VOLUME, AND PEOPLE SHIFTED TO MORE PRIVATE AVIATION. YOU WANT TO BE WHERE THE MONEY IS. CENTERS OF COMMERCE LIKE NEW YORK, MIAMI, CALIFORNIA. I THINK IN THE MIDDLE, YOU COULD END UP SEEING A SCENARIO WHERE OPERATORS LIKE ATLANTIC GO OUT AND BUILD IN THOSE PLACES WHICH ARE NOT SO OBVIOUS. THAT IS THE NEXT LEG OF THE STOOL HERE. FOR ATLANTIC, YOU THINK ABOUT HOW MANY ACQUISITION OPPORTUNITIES THERE ARE AND I THINK ATLANTIC IS COMPETING AGAINST OTHER MAJOR PLAYERS IN THE INDUSTRY. ONE IS OWNED BY BLACKSTONE AND GIP. THIS IS A SMALL CONCENTRATED PART OF THE PRIVATE AVIATION INDUSTRY, AND I THINK THESE GUYS ARE DUKING IT OUT, TO FIGURE OUT HOW TO BEST GET TO THOSE LOCATIONS, BEFORE THE OTHER DOES. TIM: IT DOESN'T HURT THAT A LOT OF THESE EXECUTIVES ARE USING THESE SERVICES. KKR ACQUIRED IT FROM A QUARRY IN 2021. NOW APOLLO IS ACQUIRING A CONTROL OF ATLANTIC. WHAT IS NEXT? IS IT ANOTHER SALE OR IS IT AN IPO? RYAN: THAT'S A GOOD QUESTION, ONE THAT I WAS WONDERING AS I WAS PUTTING THIS PIECE TOGETHER. SIGNATURE WAS ACQUIRED BY BLACKSTONE A FEW YEARS AGO. IT WAS KIND OF THE LAST MAJOR PUBLIC COMPANY IN THAT SPOT. WE ARE IN A SITUATION WHERE THE LIKES OF ATLANTIC IN SIGNATURE DON'T HAVE A TRUE PUBLIC COMPARISON. I DO THINK -- YOU MENTIONED THE SCALE AND HOW FAR THE VALUATION HAS BEEN. I THINK MAYBE AN IPO IS AN OPTION IF THEY CAN CONTINUE TO SHOW THIS GROWTH ON THE TOP END. TIM: TAKE PRIVATE, SOLD BY ANOTHER PRIVATE EQUITY FIRM, NOT BY PRIVATE EQUITY AND TAKEN PUBLIC AGAIN. CERTAINLY OF INTEREST. RYAN: WE LIKE ROUNDTRIPS. TIM: RYAN GOULD, DEALS REPORTER FOR BLOOMBERG NEWS. CHECK OUT RYAN'S A ON THE BLOOMBERG TERMINAL. STOCKS ARE ON THE MOVE, NEXT. ♪ >> THIS IS BLOOMBERG BUSINESSWEEK DAILY WITH CAROL MASSAR AND TIM STENOVEC. TIM: IT IS BLOOMBERG BUSINESSWEEK DAILY. THAT IS CHRISTINE DIO. CHECK OUT THE TERMINAL. ANY TIME SOMETHING HAPPENS IN THE TRADE, LIKE WHAT JUST HAPPENED, I JUST TYPE IT IN AND YOU AND YOUR TEAM ARE ON IT. SPEAKING OF THE MARKETS LIVE BLOG, LET'S LOOK AT HOW THINGS ARE GOING ON THIS LAST TRADING DAY OF AUGUST. HALF A PERCENTAGE POINT ON THE DOW. I GOT MY EYE ON COMMODITIES SPECIFICALLY OIL AS WE DO SEE BRENT -- WTI, SEEING 85.75. KRISTINE: A DIRECT IMPACT ON YIELDS TODAY. WE SEE TREASURY YIELDS HIGHER ACROSS THE BOARD. WE SAW THE 10 YEAR YIELD EARLIER, PROBING SOME OF THOSE MULTIYEAR HIGHS. A LOT OF INFLATION FEARS COMING BACK TO THE MARKET, ESPECIALLY AFTER WE HEARD FROM FED CHAIR -- FED CHAIR KEVIN WARSH AT JACKSON HOLE. TIM: WE WILL GET MORE DATA IN THE NEXT COUPLE OF WEEKS. A LOT OF DATA COMING IN BEFORE THE MIDDLE OF SEPTEMBER. WE ALSO HAVE OUR JOBS NUMBERS OR PAYROLLS REPORT ON FRIDAY. A LOT OF ECONOMIC DATA. I'M TIM STENOVEC, ALONG WITH KRISTINE AQUINO. FOR STOCKS ON THE MOVE, LET'S TAKE A LOOK. HOW ARE YOU? >> PRETTY GOOD. WE HAVE TO START OFF WITH AMAZON. CURRENTLY FALLING NEARLY 3%, THE MOST INTRADAY IN A LITTLE OVER A MONTH. THAT'S AFTER THE WALL STREET JOURNAL REPORTED THAT THE FTC IS CLICKED -- PLANNING TO FILE A LAWSUIT AGAINST AMAZON, ALLEGING THE COMPANY MAY PLEAD AT THE PRICES THAT BUSINESSES PAID, TO ADVERTISE ON ITS PLATFORM. FTC OFFICIALS SAY THEY EXPECT MORE THAN 20 STATE ATTORNEYS GENERAL TO JOIN THIS LAWSUIT. THE TRADE DESK INCHED UP A LITTLE BIT BECAUSE OF THIS REPORT. THAT COMPANY TECHNOLOGY COMPETES WITH AMAZON AS WELL. KRISTINE: A LITTLE LEGAL TROUBLE FOR AMAZON. TIM: AND ONCE AGAIN, THE U.S. FTC, PREPARING TO SUE AMAZON OVER CLAIMS THE COMPANY MISLED ADVERTISERS. KRISTINE: SPEAKING OF LEGAL ISSUES. IT LOOKS LIKE EDISON IS DEALING WITH A SIMILAR PROBLEM. >> IT IS CURRENTLY SINKING 23%, THE MOST SINCE 2018, AND THAT IS AFTER THE CALIFORNIA LEGISLATURE REJECTED GOVERNOR NEWSOM'S EFFORTS TO LIMIT HOW MUCH PEOPLE COULD RECOVER FROM UTILITIES COMPANIES LIKE EDISON, WHEN THEIR EQUIPMENT CAUSES FIRES. INSTEAD, THE BILL ON SATURDAY, AND HAS A LOT OF THOSE MEASURES TAKEN OUT. NOTING THAT THE STATE BILL DELIVERED MARGINAL IMPROVEMENTS. INVESTORS WERE HOPING THE LEGISLATION WOULD SOCIALIZE WILDFIRE RISK AND ESTABLISH A PERMANENT LIABILITY CAP REFORM. EDISON IS ONE OF THE BIGGEST LAGGARDS ON THE S&P 500 THIS AFTERNOON. TIM: PG&E ALSO TOOK A HIT. DOWN 18.5% AS WELL, SAME REASON. LET'S GO TO THE GREEN TRACTOR. >> DEERE, A COUPLE THINGS TO HIGHLIGHT. GAINING ABOUT 3.2% AFTER THEIR TURN BULLISH ON AGRICULTURAL COMPANIES. THEY EXPECT AGRICULTURE -- ENTERING AN EARLY CYCLE RECOVERY BEGINNING NEXT YEAR. THIS ECHOES WHAT WE'VE ALREADY HEARD FROM THE MANAGEMENT ON THEIR EARNINGS CALLS EARLIER THIS MONTH, WHEN THEY WERE ALSO SAYING THEY EXPECT 2026 TO MARK THE BOTTOM OF THE CURRENT CYCLE. DEFINITELY SOMETHING WE WILL KEEP A LOOK ON. KRISTINE: INTERESTING, HOW THAT WILL PLAY OUT WITH A TARIFF SITUATION. THE U.S. AND CANADA ARE BACK AT IT. TIM: I THINK THAT IS THE CHALLENGING THING IF YOU ARE A FARMER IN THIS COUNTRY, PLANNING FOR WHAT THINGS LOOK LIKE IN THE NEXT COUPLE OF YEARS. YOU DON'T KNOW HOW MUCH BEEF THE U.S. IS GOING TO IMPORT FROM OTHER PARTS OF THE WORLD. FOR DECADES, IT HAS BEEN CHALLENGING ENOUGH, BUT THIS IS A CHALLENGING TIME AS WELL. -- HAS STOCKS ON THE MOVE. IF YOU ARE INTERESTED IN MORE CONVERSATIONS LIKE THIS, YOU CAN CHECK OUT OUR STOCK MOVERS PODCAST. FIVE MINUTES EPISODES ON THE BIGGEST WINNERS AND LOSERS OF THE STOCK MARKET. GET IT ANYWHERE YOU GET YOUR PODCASTS. THAT IS KRISTINE AQUINO, IN FOR CAROL MASSAR. I AM TIM STENOVEC, AND THIS IS BUSINESSWEEK DAILY. IF YOU'RE STICKING WITH US ON RADIO, WE HAVE A GREAT PROGRAM COMING UP. IT IS THE END OF AN ERA, OR IS IT, BECAUSE IT IS TIM COOK'S LAST DAY OFFICIALLY, AS CEO OF APPLE. THE HARDWARE CHIEF IS TAKING OVER. IS THIS JUST TIM COOK 2.0? THAT IS A QUESTION WE WILL BE POSTING. HE IS STILL GOING TO BE HANDLING THE CHINA STUFF, THE TRUMP'S STUFF. ECONOMIC STATECRAFT. WE WILL SEE. IF YOU ARE STICKING WITH US ON TV, THE CLOSE IS UP NEXT.