Fed Sees Modest Wage Growth, Dell Gets Boost | Bloomberg Businessweek Daily 9/2/2026

>> THIS IS BLOOMBERG BUSINESSWEEK DAILY REPORTING FROM THE MAGAZINE THAT HELPS GLOBAL LEADERS 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 COME ALIVE ON BLOOMBERG RADIO, TELEVISION AND BLOOMBERG ORIGINALS. TIM: IT IS BLOOMBERG BUSINESSWEEK DAILY LIVE FROM THE STUDIO IN NEW YORK. I'M 10 STENOVEC -- I'M TIM STENOVEC. CAROL MASSAR IS OUT. LISA, WE HAVE A PACKED HOUR. WE WILL GET MORE FROM CHARLIE ON MARKETS AND A SECOND BUT STOCKS ARE UP AFTER CONCERNS ABOUT INFLATION ARE DISSIPATING EVER SO SLIGHTLY. WE TALKED TO MIKE MCKEE ABOUT THAT IN THE SECOND. SOLID CORPORATE EARNINGS ARE BRINGING BARGAIN HUNTERS IN. WE'RE ARE ALSO GOING AROUND THE WORLD. LISA: A LOT ABOUT OIL, BRENT CRUDE AT $95 A BARREL, UP NEARLY 1%. THE OIL MARKET STARTING TO RISE A BIT. TIM: TYLER KENDALL WILL BE JOINING US IN A MINUTE LIVE FROM VENEZUELA FOLLOWING INTERVIEWS WITH LEADERS OF CHEVRON. ALSO SPEAKING WITH DAN SCHREIBER ON THE LATEST INSURANCE EXPANSION AND ANNOUNCEMENTS WHEN IT COMES TO AI IN THE INSURANCE INDUSTRY. WE ARE WATCHING THE BEIGE BOOK CLOSELY. AS WE WAIT FOR THE HEADLINES WILL BRING AN CHARLIE PELLETT WHO WAS STANDING BY WITH AN UPDATE. CHARLIE: HELLO, LOOKING AT AN UPDATE FOR THE DOW, S&P AND NASDAQ, STOCKS ROSE AFTER A DROP FUELED BY CONCERNS ABOUT INFLATION. WE HAVE THE SO-CALLED DIP BUYERS COMING INTO THE MARKET WITH S&P 500 PUSHING HIGHER UP 34, 76.66, A GAIN OF 0.5%. THE DOW UP HIGHER ALMOST 0.5%, JASDAQ -- NASDAQ UP 0.3%. RUSSELL 2000 UP 1.1%. GOLD IS UP AND WEST TEXAS INTERMEDIATE CRUDE UP BY 1.1 PERCENT. CHEVRON MAKING BIG NEWS TODAY PLANNING TO INVEST $7 BILLION THE NEXT FIVE YEARS. JOINT VENTURE PARTNERSHIPS, WITH PRODUCTION VENEZUELA. CHEVRON UP 0.5%. ITALIAN OIL GIANT LIFTING ITS VENEZUELAN PRODUCTION TO MORE THAN ONE MILLION BARRELS A DAY. GE VERNOVA COMMITTING TO REPAIR LARGE PORTION OF VENEZUELA'S POWER GRID. THEY ARE UP BY 1.9%. I'M CHARLIE PELLETT AND THAT IS A BLOOMBERG BUSINESS FLASH. TIM: THE BEIGE BOOK HEADLINES ARE CROSSING. THE BEIGE BOOK, ANECDOTAL INFORMATION FROM THE FEDERAL RESERVE DISTRICTS AROUND THE COUNTRY, ECONOMIC ACTIVITY INCREASED MODESTLY SINCE EARLY JULY UNEMPLOYMENT ROSE SLIGHTLY. MICHAEL MCKEE IS WITH US, OUR ECONOMICS AND POLICY CORRESPONDENT. WHAT DID WE LEARN? MICHAEL: DOESN'T SOUND LIKE A LOT OF CHAIN BETWEEN WHAT WE HAD SEEN THE LAST COUPLE MONTHS AND THIS LATEST REPORT, WHICH COVERS AUGUST. ECONOMIC ACTIVITY UP MODESTLY. THEY SAY MANUFACTURING ACTIVITY PICKED UP ACROSS MOST DISTRICTS. SERVICES FIRMS REPORTED SLIGHT TO MODEST INCREASES. RESIDENTIAL DOES -- CONSTRUCTION DECLINED AND NONRESIDENTIAL CONSTRUCTION INCREASED. YOU WILL BE SHOCKED TO KNOW SOME DISTRICTS NOTED A HIGH CONCENTRATION OF ACTIVITY RELATED TO DATA CENTERS. TIM: I KNEW YOU WOULD SAY THAT. SO IF WE CAN'T FIND A HOUSE WE CAN LIVE IN A DATA CENTER? MICHAEL: THE GENERAL OUTLOOK FOR THE COMING MONTHS WAS POSITIVE. THE SENTIMENT WAS MIXED ACROSS SECTORS WITH CONTACTS REPORTING HEIGHTENED UNCERTAINTY SURROUNDING THE EFFECTS OF HIGHER ENERGY PRICES, POLICY AND INTERNATIONAL CONFLICT. IF I HAD READ THIS TO YOU IN MID JULY WERE MID JUNE, WOULD NOT HAVE SOUNDED OUT OF PLACE. WHAT THE FED IS GETTING IS THE SAME INFORMATION PEOPLE HAVE BEEN GIVING US FOR QUITE SOME TIME. THE ECONOMY SEEMS TO BE IN STATUS QUO, EXPANDING. LABOR MARKET SEEM TO BE STEADY BUT THERE ARE CONCERNS ABOUT INFLATION AND EVERYONE IS KEEPING AN EYE ON WHAT IS HAPPENING IN THE MIDDLE EAST. LISA: WHAT ABOUT THE HEALTH OF THE AMERICAN CONSUMER? MICHAEL: ACCORDING TO THE STORY HERE, RETAIL, DEPENDING ON WHAT YOU WERE BUYING, PEOPLE WERE LOOKING BOTH AT THE PRICES. THERE WAS HEIGHTENED PRICE SENSITIVITY, BUT SPENDING DID GROW SLIGHTLY. SOLID HIGH END PURCHASES ON THE OTHER SIDE. THEM THAT HAVE IT WILL GET MORE. TIM: MICHAEL MCKEE, OUR INTERNATIONAL ECONOMY AND POLITICS CORRESPONDENT WITH THE BEIGE BOOK. WALL STREET LASER FOCUSED ON WHAT THE FED WILL DO IN SEPTEMBER AND BEYOND, AND THE LATEST OUT OF VENEZUELA. COMPANIES SIGNING DEALS THE BUT THE COUNTRY ON PACE TO RAPIDLY EXPAND OUTPUT OF CRUDE. CHEVRON PLANS TO INVEST $7 BILLION OVER FIVE YEARS THROUGH A JOINT VENTURE PARTNERSHIP TO MORE THAN DOUBLE CRUDE PRODUCTION VENEZUELA. TYLER KENDALL IS IN VENEZUELA WHERE SHE SPOKE TO BOTH THE U.S. ENERGY SECRETARY AND MIKE WORTH THE CEO OF CHEVRON. WHAT CAN YOU TELL US ABOUT WHAT ENERGY COMPANIES ARE DOING TODAY IN VENEZUELA? TYLER: WE JUST FINISHED A SIGNING CEREMONY THAT TOOK LACE IN THE PRESIDENTIAL PALACE WHERE I AM RIGHT NOW WHERE WE SAW A FLURRY OF DEALS FROM THE PRIVATE SECTOR THAT ARE BOOSTING THEIR INVESTMENT TO HELP DRILL MORE AND INCREASE THE OIL OUTPUT IN VENEZUELA. RELATIVELY SPEAKING WE HAVE NOT SEEN PRODUCTION RAMP UP IN THE WAKE OF THE OUSTER OF NICOLAS MADURO. DATA SHOWING VENEZUELA IS AVERAGING 1.1 MILLION BARRELS PER DAY, WELL BELOW THE HEIGHT OF PRODUCTION THREE DECADES AGO AROUND 3.5 MILLION BARRELS. THE BACKDROP IS, SENIOR OFFICIALS, IT IS PART OF THE BID TO MAKE THE INDUSTRY MORE COMFORTABLE IN INVESTING IN VENEZUELA AMID THIS RELATIVE HESITANCY. THE BACKDROP INCLUDES THE U.S. GOVERNMENT DEAL WHERE THE GOVERNMENT WILL BE TAKING THIS EQUITY STAKE IN A PRIVATE COMPANY THAT HAS BEEN GRANTED A HUNDRED YEAR LEASE TO DEVELOP NEARLY 17 STRATEGIC OIL FIELDS. THERE ARE QUESTIONS ABOUT THE LEGAL DURABILITY AND FEASIBILITY WHEN IT COMES TO SCALE. THE U.S. ENERGY SECRETARY TOLD ME THEY ARE EXPECTING TO RAMP THIS UP AT FULL SPEED. >> THERE IS SCALE IN SEVERAL OF THOSE FIELDS. A NUMBER HAVE NOT SEEN MEANINGFUL DEVELOPMENT YET. SOME HAD RUSSIAN OR CHINESE PARTNERSHIPS, FRANKLY CRIMINAL PARTNERSHIPS. THAT IS TO BRING THESE FIELDS INTO REAL COMMERCIAL DEVELOPMENT. WITH THE SPEED OF THINGS. WE HAVE GONE AT TRUMP SPEED IN VENEZUELA. COUNTRY PRODUCTION IS UP 25%, EXPORTS UP 50%. WE THINK EVEN FOR PRODUCTION TODAY, ALREADY ELEVATED, THAT COULD DOUBLE BY THE END OF THIS DECADE. TYLER: THE U.S. GOVERNMENT WILL ALSO BE GRANTED THE RIGHT TO PURCHASE 20% OF THE PRODUCTION OUTPUT FROM THIS JOINT VENTURE AT COST, SO BELOW MARKET PRICE. WE ARE TOLD THAT WILL BE USED TO FILL THE STRATEGIC OIL RESERVE WHICH IS AT RECORD LOWS. I ASKED ENERGY SECRETARY DIRECTLY ABOUT WHETHER VENEZUELAN CRUDE WOULD GO TO THE SPR. HE SAID IT WOULD BE A SWAP MECHANISM BUT IT IS DESIGNED TO BOLSTER THOSE SUPPLIES, SINCE THEY ARE RUNNING PRETTY LOW. LISA: YOU HAD A BUSY DAY AND SPOKE WITH THE CHEVRON CEO MIKE WORTH. WHAT DID HE TELL YOU? A LOT OF QUESTIONS AROUND WHAT PROTECTIONS HAS CHEVRON BUILT INTO THIS INVESTING DEAL. TYLER: THAT IS PERHAPS ONE OF THE BIGGEST QUESTIONS. WHAT EXACTLY DID THEY GET FROM THE VENEZUELAN GOVERNMENT OR ASSURANCES FROM THE U.S. GOVERNMENT, WHEN IT COMES TO EXPANDING INVESTMENT IN VENEZUELA ON THE HEELS OF THE LARGEST FINANCIAL EQUIPMENT WE HAVE SEEN FROM A MAJOR OIL COMPANY SINCE THE OUSTER OF NICOLAS MADURO. I WILL LET HIM ANSWER THAT FOR ME. TAKE A LISTEN TO WHEN I PRESSED HIM ON WHAT THIS CONTRACT WILL LOOK LIKE -- >> AS IMPORTANT AS THE COMMERCIAL AND PHYSICAL TERMS WHERE THE LEGAL TERMS AND PROTECTIONS FOR INVESTORS WHICH IS AN ISSUE WE DEAL WITH IN MANY COUNTRIES AROUND THE WORLD. WE HAVE PROVISIONS THAT ARE VERY STRONG RELATIVE TO OTHER CONTRACTS AS IT RELATES TO RESOLVING DISPUTES, ENSURING THE TAX AND ROYALTY REGIME WE HAVE AGREED TO AND WILL INVEST UNDER ISN'T CHANGED ON US. TYLER: WORTH TOLD ME THIS DEVELOPMENT IS EXPECTED TO DOUBLE CHEVRON'S DEVELOPMENT HERE IN VENEZUELA OVER THE COMING YEARS. HE IS CURRENTLY INSIDE THE PRESIDENTIAL PALACE MEETING WITH OTHER ENERGY CEOS AS WELL AS THE ENERGY SECRETARY, AND INTERIM AS IT INTO OF VENEZUELA, DELCY RODRIGUEZ. TIM: I'M WONDERING WHAT HAPPENS NEXT? THERE ARE A LOT OF QUESTIONS NOT JUST ABOUT THE DURABILITY OF THE DEAL, BUT WHAT IS THE NEXT THING YOU'RE WATCHING OUT FOR TO UNDERSTAND THE FULL EXTENT OF AMERICAN INVESTMENT IN THIS COUNTRY? TYLER: THERE ARE QUESTIONS ABOUT EXACTLY WHAT HAPPENS WITH THE 17 STRATEGIC OIL FIELDS. IT IS OUR UNDERSTANDING AND THE SECRETARY CONFIRMED THAT IN THE JOINT VENTURE THEY WILL NOT HAVE THE ABILITY FOR THIS PRIVATE COMPANY, NORTH AMERICAN BLUE ENERGY PARTNERS, TO SOLELY DEVELOP IT ON THEIR OWN. THEY WILL HAVE TO BRING IN OTHER PRODUCERS. THERE WERE QUESTIONS WHETHER OR NOT THOSE OTHER PRODUCERS WOULD WANT TO DO IT, BUT THAT IS THE POINT OF TODAY TO GET THEIR INTEREST TO MAKE THIS A VIABLE INVESTMENT AND COMMITMENT WHICH THEY SAID COULD PRODUCE 65 BILLION BARRELS OF OIL. THERE ARE ALSO QUESTIONS AROUND THE LEGALITY OF THIS DEAL RELATED TO VENEZUELA'S CONSTITUTION AND WHETHER THERE WAS A COMPETITIVE BIDDING PROCESS INVOLVED. THE STATE DEPARTMENT SAYS IT MEETS THE LEGAL SCRUTINY, BUT THAT COULD BE SOMETHING TO WATCH. TIM: TYLER KENDALL IN VENEZUELA, GREAT WORK. APPRECIATE YOU TAKING THE TIME TO JOIN US ON BLOOMBERG BUSINESSWEEK DAILY. WE HAD MACRO STORIES WITH THE FED, VENEZUELA AND ENERGY. NOW TO THE MICRO, WHICH IS MOVING MARKETS AND EVEN CHANGING THE NARRATIVE. DELL SHARES JUMPING AFTER THEY BOOSTED THEIR ANNUAL SALES FORECAST BY $25 BILLION, A SIGN OF SURGING DEMAND FOR SERVERS TO RUN AI TASKS. OUR SENIOR ANALYST JOINS US FROM BLOOMBERG INTELLIGENCE HEADQUARTERS IN PRINCETON, NEW JERSEY. THERE WERE HIGH EXPECTATIONS GOING INTO THIS, SHARES OF TRIPLE DIGITS AHEAD OF THIS PRINT. WHAT DID WE LEARN NEW FROM DELL AND HOW DOES IT CHANGE THE NARRATIVE AROUND AI INVESTMENT QUESTION MARK -- INVESTMENT? >> I LIKE HOW YOU FRAMED IT LEADING INTO OUR CONVERSATION, HOW AI WORKLOADS IS CHANGING DELL'S NARRATIVE. THE HEADLINE NUMBER WILL BE THE AI SERVERS DRIVING REVENUE UPSIDE BUT AS IMPORTANT, THE CORPORATE I.T. SPENDING IS ROBUST AND RESILIENT DESPITE UP TO TRIPLE DIGIT INCREASES IN PRICING OF SERVER SALES BECAUSE OF MEMORY INFLATION. THERE IS SOMETHING GOING ON THERE. CORPORATE I.T. IS STILL UPGRADING THESE HIGHER SERVER PRICES BECAUSE OF PROBABLY HIGHER WORKLOADS. LISA: YOU TOUCHED UPON THIS A BIT, IS THEIR TRADITIONAL BUSINESS? HOW FAST IS THAT GROWING? IS THAT AN IMPLICATION FOR THEM? WOO JIN: LET ME GIVE YOU SOME CONTEXT. IF WE LOOK AT THE TRADITIONAL SERVER IS THIS, YOU TAKE OUT AI, AI IS DOING GANGBUSTERS, OF $14 MILLION INCREASE IN GUIDANCE ALONE. THE TRADITIONAL SERVER BUSINESS GREW 122% IN THE FISCAL SECOND QUARTER, AND MORE THAN DOUBLED AND WE EXPECT THEM TO CONTINUE AT107% GROWTH RATE IN THE SECOND HALF OF THIS YEAR SO AT THE END OF THE DAY I HAVE TO ATTRIBUTE IT TO INFLATION BECAUSE THEY ARE PASSING THROUGH THE HIGHER MEMORY COSTS, BUT THERE IS STILL RESILIENT DEMAND. CORPORATE I.T. IS HESITANT WHEN THEIR COMMODITY SERVERS ARE DOUBLING AND THEY ARE STILL VALUING IT ANYWAY. TIM: IT IS WILD TO SEE A PRINT LIKE THIS EVEN WITH HIGH EXPECTATIONS. I WANT TO GO BACK TO THE CONNECTION TO THE MACRO AND THE VIEW OF, EVERYBODY TRYING TO FIGURE OUT, WE LOOKED AT EACH COMPANY TO UNDERSTAND THE DURABILITY OF THIS CAPEX INVESTMENT. NVIDIA IS ONE OF THOSE. WE GOT IT LAST WEEK AND IT WAS MASSIVE. DID DELL CHANGE THE NARRATIVE? WOO JIN: NO, IF ANYTHING IS SUPPORTED THE NARRATIVE. YOU ARE RAISING THEIR GUIDANCE FROM 60 MILLION TO 74 MILLION ON THE AI SERVER-SIDE. THAT IS JUST SCRATCHING THE SURFACE. YOU'RE STARTING TO SEE MULTIPLE NEOCLOUD'S CROPPING UP GLOBALLY THAT WILL USE DELL OR ANOTHER TO BUY AI SERVERS. THERE ARE A HANDFUL OF COMPANIES THAT CAN DO THAT, AND DELL IS ONE. YOU WILL SEE THE GROWTH MOMENTUM GOING INTO FISCAL 2028. LISA: WE WILL HEAR FROM RIVAL HEWLETT-PACKARD ENTERPRISE AFTER THE CLOSE. DO EXPECT TO HEAR A SIMILAR STORY FROM THEM? WOO JIN: IF DELL IS DOING WELL ON THE TRADITIONAL SERVER SIDE, HPE WILL DO WELL AS WELL. ONE OF THREE VENDORS IN THE U.S. AND GLOBALLY THAT COMPETED IN THIS MARKET SO THEY WILL DO FINE AND I EXPECT UPSIDE FROM THEM ON THE SERVER SIDE BUT THE KICKER, THEIR NETWORKING SIDE IS GOING GANGBUSTERS AS WELL. WE HEARD CISCO'S RESULTS, THEIR CORPORATE NETWORKING GROWTH HAS BEEN GROWING PHENOMENALLY AT HIGHER MARGINS. YOU NOT ONLY GET A REVENUE BOOST, BUT A MARGIN BOOST AS WELL. TIM: REMIND US OF THE ECOSYSTEM. YOU MENTIONED SUPER MICRO, HPE, WHERE DOES DELL FIT INTO THE ENTIRE ECOSYSTEM? THEY HAVE PARTNERSHIPS WITH THE BIGGEST COMPANIES AND THERE ARE A FEW COMPETITORS, BUT THEY REALLY STOOD OUT. WOO JIN: IF WE THINK ABOUT THE AI SERVERS, THEY ARE NOT GOING TO SELL DIRECTLY TO THE HYPERSCALE GUYS, MOSTLY THE NEOCLOUD CUSTOMERS. THERE ARE ONLY TWO, THREE VENDORS THAT CAN SELL TO THEM. THEY ARE DOING ROUGHLY $190 BILLION IN REVENUE. THEY WILL BE NUMBER ONE ON THE TRADITIONAL SERVER STORAGE SIDE, ONE IN AI SERVERS, X CLOUD PROVIDERS END ON THE PC SIDE, AND WE HAVE TO TALK ABOUT THE SCALE. THEY WILL BE NUMBER ONE OR TWO ON THE CORPORATE PC SIDE BEHIND LENOVO. WHEN WE TALK ABOUT THE SCALE, WHAT IS HELPING THEM IS ON THE MARGIN FRONT. THE EPS SIDE WAS FANTASTIC BECAUSE OF THE STRONG MIX ON THE TRADITIONAL SERVER SIDE OF THE BUSINESS. LISA: YOU MENTIONED THE PC SIDE, DELL WORKING TO CONTROL EXPENSES. WHAT DOES IT MEAN TO THE CONSUMER? WILL THEY RAISE THE PRICES ON THEIR PC'S? WOO JIN: I HOPE YOU GOT YOUR PC. [LAUGHTER] LISA: DARN IT, I HAVE A KID GOING TO COLLEGE. WORK WITH ME. WOO JIN: ME AND MY COLLEAGUE NELSON MENDEZ DID A LOT OF NUMBER CRUNCHING OR THE PC BUSINESS WAS RESILIENT IN THE FIRST HALF OF THE YEAR, SECOND HALF WE ARE TALKING ABOUT 23% PRICE INCREASES FOR THE CONSUMER SIDE OF THE LEDGER AND THAT IS DIRECTLY AFFECTING VOLUMES. DELL HAS FARED WELL ON THE PC SIDE, BUT APPLE FROM THE PREMIUM SIDE IS THE KING OF THE CROP. TIM: TO LISA'S POINT ON THE REFRESH SIDE FOR CORPORATE IP DEPARTMENTS DO THEY EXTEND THE LIFE OF WHAT THEY HAVE? WOO JIN: FOR PC'S, YES. TIM: BECAUSE THEY ARE INVESTING OTHER PLACES. WOO JIN: I'M USING MORE AI WITHIN BLOOMBERG AND I'M SURE OTHER CORPORATE'S ARE USING A LOT MORE AS WELL AND YOU CAN HAVE AGING INFRASTRUCTURE TO SUPPORT THOSE AI WORKLOADS. COMPANIES ARE RETHINKING HOW THEY ARE BUILDING OUT THERE AI AND THEIR INFRASTRUCTURE AND COMPANIES THAT HAVE SERVERS THAT ARE 5, 6, 7 YEARS OLD, THEY NEED AN UPGRADE AND DELL IS BENEFITING FROM THAT. TIM: WOO JIN COVERS IT ALL INCLUDING HP. HE WILL JOIN US LATER FOR ADDITIONAL DETAILS. HE IS OUT THERE AND OUR PRINCETON, NEW JERSEY HEADQUARTERS. YOU CAN CHECK OUT HIS RESEARCH ON THE BLOOMBERG TERMINAL AND BLOOMBERG.COM. DELL SHARES UP BY 11.5% NOW, UP 277% THIS YEAR. LISA: THAT IS CRAZY. HP DOWN HALF A PERCENT. WHO KNOWS WHAT WILL HAPPEN AFTER THE CLOSE. TIM: JUST THE FOLKS IN HP. IN A FEW MINUTES WE WILL BE SWITCHING GEARS, SPEAKING WITH DANIEL SCHREIBER, COFOUNDER AND CEO AT THE INSURANCE COMPANY LEMONADE. THEY ARE DOING SELF DRIVING. HE WILL GIVE US THE DETAILS IN A FEW MINUTES. IT IS BLOOMBERG BUSINESSWEEK CHARLIE: WE CHECK MARKETS ALL DAY LONG AT BLOOMBERG, GAINS FOR THE S&P 500 CLOSER TO SESSION HIGHS CURRENTLY UP 40 POINTS BY 0.5 PERCENT, STOCKS ROSE AFTER A DROP FUELED BY CONCERNS ABOUT INFLATION. ATTRACTIVE VALUATIONS BRINGING PEOPLE BACK TO THE MARKET WITH THE DOW UP 260 POINTS, UP 0.5%. NASDAQ UP 0.4%. OUTPERFORMER OF SMALL CAPS, THE RUSSELL 2000 UP 1.2%. THE PHILADELPHIA SEMICONDUCTOR INDEX UP 0.2%. THE VIX HOLDING ABOVE 15. THE TWO-YEAR 4.3%, 10 YEAR AT 4.79%, AND THE 30 YEAR 5.26%. WEST TEXAS INTERMEDIATE CRUDE $91.31 A BARREL, BRENT UP 1.3%. ALPHABET SHARES TRADING HIGHER BY 0.7%. A FEDERAL JUDGE HAS RULED ALPHABET'S GOOGLE DOES NOT HAVE TO SELLOFF ITS AD EXCHANGE AND INSTEAD MUST MAKE ITS AD TECH TOOLS [INDISCERNIBLE] THE FEDERAL RESERVE AS WE HEARD FROM MICHAEL KEY -- MICKEY, THERE WAS DEMAND FROM DATA CENTERS DRIVING GROWTH. RECAPPING, STOCKS HIGHER, S&P 500 UP 0.5%. I'M CHARLIE PELLETT, THAT WAS A BLOOMBERG BUSINESS FLASH. TIM: APPRECIATE THAT. NEWS IN THE WORLD OF INSURANCE, LAST MONTH THE INSURANCE COMPANY LEMONADE LAUNCHED AUTONOMOUS CAR INSURANCE IN TENNESSEE GIVING TESLA OWNERS 50% OFF FOR EACH MILE DRIVEN THAT USES TESLA'S SUPERVISED TECHNOLOGY, FULL SELF DRIVING TECHNOLOGY. LISA: THIS IS CONFUSING AND MAKES ME SCARED OVERALL. [LAUGHTER] TIM: I WOULD RATHER HAVE THE REMOTE BEHIND THE WHEEL, ESPECIALLY ON THE NEW JERSEY TURNPIKE. [LAUGHTER] FOR MORE ON THE INSURANCE AND TECHNOLOGY WE ARE JOINED BY DANIEL SCHREIBER, COFOUNDER AND CEO OF LEMONADE. I FEEL LIKE WE'VE BEEN SPEAKING FOR CLOSE TO A DECADE AND PEOPLE REMEMBER LEMONADE EARLY ON IN ITS LIFETIME AS HOME AND RENTERS INSURANCE, YOU HAVE EXPANDED PET AND AUTO. I DO WANT TO TALK ABOUT THE AUTONOMOUS CAR INSURANCE. HOW DOES THAT WORK AND HOW DOES THE PRICING WORK AROUND IT? DANIEL: WE'VE BEEN TALKING ABOUT HOW AI CAN TRANSFORM INSURANCE AND IT IS WONDERFUL TO SEE THE REACHES WE ARE ABLE TO GET TO NOW. IT STARTS WITH SOMETHING MORE PROSAIC. LEMONADE PRICES INSURANCE BASED ON HOW YOU ACTUALLY DRIVE SO WE TRACK HOW YOU DRIVE AND SEE IF YOU'RE A RESPONSIBLE DRIVER OR NOT, AS THOSE NEW JERSEY DRIVERS YOU WERE REFERENCING EARLIER. IT IS A TREMENDOUS DISTINCTION TO HOW THE INDUSTRY PRICES. THEY LOOK AT YOUR GENDER, YOUR CREDIT SCORE, MARITAL STATUS, EDUCATIONAL STATUS AND THAT BRUSH IS HOW INSURANCE IS PRICED TODAY. NOT SO WITH LEMONADE. WE LOOK AT HOW MUCH YOU DRIVE, HOW YOU DRIVE, HOW RESPONSIBLE YOU DRIVE, OFTEN WHERE YOU DRIVE. THAT PIERCES THROUGH THE MONOLITHIC GROUPS AND ALLOWS US TO LOOK AT YOU AS AN INDIVIDUAL RATHER THAN AS A PROXY. WE TAKE THAT A STEP FURTHER WITH AUTONOMOUS DRIVING. NOT ONLY CAN WE SEE HOW YOU DRIVE AND PRICE ACCORDINGLY AND GIVE YOU A FAIR RATE. YOU WILL GET A MUCH BETTER RATE AT LEMONADE THAN YOU WOULD ELSEWHERE. BUT IF YOU ARE NOT DRIVING AT ALL AND AI IS DRIVING IN YOUR STEAD, WE CAN PRICE THAT AS WELL. WE CAN SEE WHEN YOU HAND OVER THE STEERING WHEEL TO THE FULL SELF DRIVER AS WITH TESLA, AND WE SEE THAT IT IS DRIVING AND WE KNOW IT IS SIGNIFICANTLY SAFER THAN THE AVERAGE DRIVER. WE WILL GIVE ON A PER MILE BASIS OF 50% DISCOUNT TO THE INSURANCE WHEN YOU TURN ON FSD ON YOUR TESLA. LISA: TALKING TESLA SPECIFICALLY THIS WHOLE CONVERSATION IS MAKING ME NERVOUS, FIRST OF ALL. TIM: BECAUSE YOU HAVE KIDS WHO CAN DRIVE. LISA: YOUR PRICING TESLA AUTONOMOUS MILES OF HALF THE HUMAN RATE. WHAT SUPPORTS THAT DISCOUNT TODAY? DANIEL: PLENTY OF IT. THERE IS A LOT OF DATA TODAY. WHEN TESLA CRASHES OR DOES SOMETHING WRONG IN SELF-DRIVING MODE, IT MAKES THE PRESS. BUT WHEN HUMANS DO THE SAME OR WORSE, IT DOESN'T. WE REGARD THAT AS YET ANOTHER STATISTIC. WHEN YOU LOOK AT STATISTICS RATHER THAN THE EMOTIONAL REACTION WE HAVE TO THE IDEA OF AN AUTONOMOUS CAR WE FIND THEY ARE DRAMATICALLY SAFER. YOU MENTIONED TESLA. THIS IS A CAPABILITY WE HAVE AND WE ARE PLUGGED INTO THE API OF TESLA. WE WILL LOOK AT WHICH VERSION OF TESLA YOU HAVE, WHETHER YOU HAVE UPGRADED THE SOFTWARE TO THE LATEST AND GREATEST FSD. WE CAN CONTINUOUSLY DRIVE DOWN PRICES BY MAKING SURE THE DRIVING YOU ARE EXHIBITING YOURSELF OR THE AGENT YOU HANDED IT TO HIS PRODUCING BETTER OUTCOMES AND STATISTICS BACK THAT UP. REGULATORS WOULD NOT ALLOW US TO DO THAT IF IT WASN'T THE CASE. TIM: WE ARE FOCUSED ON TESLA. DRIVING AND THAT IS WHAT GETS THE MOST ATTENTION. THE FOLKS GENERALLY AGREE FROM THESE AUTO MANUFACTURERS IT IS MOST ADVANCED BUT YOU HAVE THE SUPER CRUISER FROM GENERAL MOTORS, THE BLUE CRUISE FROM FORD. HOW FAR ARE YOU FROM OFFERING SIMILAR THINGS LIKE YOU OFFER IN TENNESSEE TO TESLA OWNERS TO OWNERS OF OTHER CARS? DANIEL: WE DON'T PREANNOUNCED POLITICS BUT THE VISION IS WHAT YOU LAID OUT. THERE ARE MANY CARS AND DEGREES OF AUTONOMY YOU CAN HAVE. IT IS THE TIP OF THE SPEAR. THERE ARE GRADATIONS OF AUTONOMY AND WE WANT TO PRICE THOSE. WE HAVE THE INFRASTRUCTURE. WE ARE UNIQUE IN HAVING THE INFRASTRUCTURE TO SEE THAT LEVEL OF NUANCE TO LOOK AT INDIVIDUAL HUMAN DRIVING OR THE CAR IN THE DIFFERENT DEGREES AND PRICING ACCORDINGLY. THE AI WE ARE HARNESSING TO DO THIS DOES MORE THAN JUST PRICE AUTO INSURANCE, IT ALLOWS US TO PAY CLAIMS IN THREE SECONDS. MOST OF OUR CLAIMS ARE PAID WITHOUT HUMAN INTERVENTION. THAT DRIVES DOWN COSTS AND DRIVES UP CUSTOMER DELIGHT. IT ALLOWS US TO SELL POLICIES FROM ANY DEVICE AT ANY TIME OF DAY OR NIGHT, IN YOUR PAJAMAS, IN AS LITTLE AS 90 SECONDS, IN STARBUCKS GETTING A LATTE TYPICALLY TAKES TWICE AS LONG. IT IS DRIVING DOWN COSTS WHICH PASS ON TO THE CONSUMER SO YOU END UP WITH A LESS EXPENSIVE, MORE AFFORDABLE INSURANCE, LESS OF A PAIN TO USE AND YOU GET REALLY COOL FEATURES LIKE THE ABILITY TO DISTINGUISH HOW YOU DRIVE OR IF YOU ARE DRIVING AT ALL. LISA: HOW ABOUT PET INSURANCE? HOW MUCH GROWTH DO YOU SEE IN THIS? I KNOW MOM AND DAD DOG OWNERS LOVE THEIR LITTLE ONES. HOW MUCH GROWTH HAVE YOU SEEN IN THIS SECTOR? DANIEL: STUPENDOUS GROWTH. 60% COMPOUNDING GROWTH RATES OVER RECENT YEARS. LEMONADE IS NOW THE NUMBER ONE GOOGLED TERM IN PET INSURANCE SPACE. AWARENESS OF THIS PRODUCT HAS BEEN GROWING. PET OWNERSHIP IN THE RELATED INDUSTRIES HAVE ENJOYED A HUGE FLOURISHING EVER SINCE COVID, SO THIS HAS BEEN A SECULAR TREND THAT'S BEEN GROWING. FOR US IT'S BEEN A BIG DRIVER OF OUR BUSINESS. DELIGHTFUL PRODUCTS, 90 SOMETHING PERCENT OF CLAIMS PAID INSTANTANEOUSLY. WE ARE DRIVING INCREDIBLE NEW USER EXPERIENCE, HOW THE AFFORDABLE PRODUCT. IT'S ONE OF OUR BEST SELLING PRODUCTS TO GO. TIM: AT THAT WE WERE DONE TALKING ABOUT CAR INSURANCE WILL BE OR NOT BECAUSE WE ARE GETTING A QUESTION FROM A QUESTION FROM ANYWHERE IN ATLANTA. ASKS ABOUT THIS TECHNOLOGY COMING TO GEORGIA. HE HAS A RIVIAN WITH LIMITED SELF DRIVING TECHNOLOGY. YOU TOLD ME YOU DON'T. ANNOUNCE PRODUCTS PRODUCTS BUT MAYBE YOU CAN TELL US ON A STATE-BY-STATE BASIS HOW YOU ARE THINKING ABOUT INTRODUCTION. DANIEL: WE ARE LAUNCHING A QUITE A CLIP. IN THE LAST SIX MONTHS ACROSS OUR DIFFERENT PRODUCTS, WE HAVE HAD 14 DIFFERENT LUNCHES. JUST TODAY, WE EXPANDED OUR CAR INSURANCE INCLUDING AUTONOMOUS CAR INSURANCE TO MISSOURI. YESTERDAY WE LAUNCHED RENTERS INSURANCE IN KANSAS. ON A WEEKLY BASIS, WE ARE LAUNCHING IN MORE STATES. TO ANYBODY THAT HAS A TESLA AND WANTS TO USE THIS, YOU CAN PREREGISTER ON OUR WEBSITE, BUT PLEASE REST ASSURED, WE ARE RUSHING TO GET THIS PRODUCT TO YOU AS QUICKLY AS WE CAN. TIM: MAYBE YOU'LL HAVE TO HOLD UP A LITTLE LONGER FOR THE RIVIAN TO BE COVERED. ON THE TELEMATICS SIDE OF THIS, DANIEL, CALIFORNIA LIMITS THE ABILITY TO USE BEHAVIORAL TELEMATICS AND AUTO PRICING, SO HOW DOES THAT CHANGE THE STRUCTURAL PROFITABILITY VERSUS STATES WHERE YOU CAN USEFUL TELEMATICS? DANIEL: ABSOLUTELY RIGHT. CALIFORNIA IS A BIT OF AN OUTLIER IN THAT REGARD. THEY DO ALLOW US TO TRACK MILEAGE DRIVEN. IN FACT, CALIFORNIA IS OUR SINGLE BIGGEST ESTATE. WE SELL A LOT OF POLICIES IN CALIFORNIA BUT WE DON'T TRACK HOW YOU DRIVE NEARLY AS MUCH ON WHAT YOU DRIVE. IT TURNS OUT TWO THIRDS OF CUSTOMER DRIVE LESS THAN AVERAGE. THAT SOUNDS LIKE AN ODDITY AT FIRST BLUSH BUT IT MAKES SENSE. YOU HAVE A THIRD OF DRIVERS DRIVING A LOT MORE. THE INSURANCE COMPANY DOESN'T KNOW THAT THEY ARE DOING MORE DRIVING. THEY ARE SUBSIDIZED BY THE OTHER TWO THIRDS. IF YOU ARE ONE OF THE MAJORITY OF PEOPLE DRIVING LESS THAN AVERAGE, YOU ARE OVERPAYING. THAT IS THE SINGLE MOST IMPORTANT METRIC FOR AN INSURANCE COMPANY TO KNOW. INSURANCE COMPANIES HAVE NO IDEA HOW MUCH YOU ARE DRIVING. WE DO. PEOPLE THAT DON'T USE THEIR CAR ON A REGULAR BASIS OR OTHERWISE FIND THEMSELVES TO BE CONSUMERS OF LESS MILES THAN THE AVERAGE, AND THAT IS THE MAJORITY OF PEOPLE OUT THERE, THEY CAN USUALLY SAVE MONEY BY SWITCHING TO LEMONADE. TIM: THIS IS SURPRISING FOR ME TO HEAR. FULL DISCLOSURE, I HAVE A CAR, I DO NOT HAVE LEMONADE, AND IT COSTS AN ARM AND A LEG. I'M TOLD EVERY SIX MONTHS WHEN THE PRICE GOES UP BY MY BROKER IS BECAUSE YOU LIVE IN BROOKLYN AND BROOKLYN IS THE PLACE WHERE AUTO INSURANCE IS THE MOST EXPENSIVE. I TRULY NEVER DRIVE. I AM WONDERING, YOU MENTION ALL OF THESE THINGS AND GOES INTO PRICING AUTO INSURANCE. ISN'T WHERE YOU LIVE A REALLY IMPORTANT PART OF THIS, AND THAT IS NOT WITHIN YOUR CONTROL? DANIEL: THAT IS NOT WITHIN OUR CONTROL, BUT ONCE WE HAVE YOUR PERMISSION TO LOOK AT YOUR DRIVING, IN CALIFORNIA, HOW MANY MILES YOU DRIVE, ELSEWHERE THE QUALITY OF YOUR DRIVING, THERE WAS OTHER MEASURES BECOME VERY UNIMPORTANT VERY QUICKLY. YOU ARE IN RELATIVELY GOOD SHAPE. THINK ABOUT YOUNG DRIVERS WHO DON'T HAVE A CREDIT SCORE YET, WHO DON'T HAVE A HISTORY OF DRIVING. ALL OF THESE THINGS WORKING AGAINST THEM. THEY ARE NOT MARRIED. THEY DON'T HAVE THE EDUCATION LEVEL THAT YOUR INSURANCE COMPANY WOULD LIKE TO SEE. THEY DON'T SCORE WELL ON THE PROXIES. THEY PAY A FORTUNE BECAUSE ON AVERAGE THAT MAKES SENSE. HOWEVER, IF YOU ARE A RESPONSIBLE ADULT, YOU ARE PENALIZED BY THE INABILITY OF THE INSURANCE COMPANY TO SEE THROUGH THE CROWD TO THE INDIVIDUAL. THE MORE COMPANIES ADOPT TECHNOLOGIES LIKE OURS WHICH ALLOWS US TO BE MUCH FAIRER AND SAY TO YOUNG DRIVERS OR DRIVERS LIKE YOU, TIM, YOU HAD A PROFOUND THAT ISN'T AVERAGE. TO ARGUE WITH THE SAME BRUSH, TREATING YOU AS ONE OF THE MONOLITHIC WHOLE BECAUSE YOUR CREDIT SCORE IS X, OR YOU LIVE IN BROOKLYN, IT IS BAD PRICING, NOT GOOD FOR BUSINESS, NOT GOOD FOR CONSUMERS, BUT IT IS THE STATE OF THE INDUSTRY EXCEPT FOR LEADING CONTENDERS, AI COMPANIES LIKE LEMONADE WHO ARE TAKING A VERY DIFFERENT APPROACH. TIM: DANIEL SCHREIBER, GOOD TO SEE YOU. GLAD YOU CAME ON THIS AFTERNOON. COFOUNDER AND CEO OF LEMONADE, JOINING US FROM JERUSALEM. THE NEW JERSEY TURNPIKE IS SCARY. LISA: JUST WAIT UNTIL THOSE YOUNG ONES THAT YOU HAVE GET A LICENSE. SEE HOW MUCH YOUR INSURANCE GOES UP. YOU ARE COMPLAINING NOW. TIM: MORE BLOOMBERG BUSINESSWEEK DAILY IN JUST A BIT. CHARLIE: IT IS 2:40 ON WALL STREET. WE DO CHECK MARKETS ALL DAY LONG HERE ON BLOOMBERG. DOWN, S&P, NASDAQ HIGHER RIGHT NOW. S&P 500 INDEX IS OFF SESSION HIGHS LOOKING AT A GAIN OF 33 POINTS, 7664. UP BY 0.4%. DOW BELOW 53,000. A NARROW 0.4%. THAT ALSO UP 0.4%. RUSSELL 2000 INDEX OF SMALL-CAP SHARES RALLYING BY 1.2%. SOX UP 0.3%. VIX JUST ABOVE 15. 2-YEAR CURRENTLY YIELDING 4.38%. 10-YEAR, 4.79%. 30-YEAR, 5.62%. GOLD IS UP. TRADERS KEEPING AN EYE ON OIL PRICES. WEST TEXAS INTERMEDIATE CRUDE UP 0.5%. A BARREL OF BRENT, UP BY 0.6%. AFTER EARNINGS, DELL SHARES ARE SURGING BY 13% AFTER IT BOOSTED ITS ANNUAL SALES FORECAST BY $25 BILLION. PALO ALTO NETWORKS IS PLUNGING AFTER EARNINGS, DOWN BY 10.7%. COMING UP AFTER THE CLOSE OF TRADING, WE WILL HEAR FROM BROADCOM AND HEWLETT-PACKARD. S&P 500 INDEX OF 0.4%. THAT IS A BLOOMBERG BUSINESS FLASH. LISA: THANK YOU, CHARLIE PELLETT. THERE IS A NEW BLOOMBERG PODCAST THAT IS OUT, A FOUR-PART SERIES THAT FOLLOWS WHEN NEIGHBORS CLAIMING TO BE PIONEERS MOVE INTO A SMALL TOWN IN TENNESSEE, AND TURNED INTO A FIGHT OVER WHAT IT MEANS TO BE AN AMERICAN. IT SOUNDS LIKE A TV SHOW. WE HAVE SUSAN AND NARROW. THEY HOSTED THE SERIES. YOU ARE A SENIOR INVESTIGATIVE REPORTER, YOU ARE BASED IN NASHVILLE. THANK YOU FOR JOINING US IN THE STUDIO. YOU ARE FROM TENNESSEE. EXPLAIN THIS PARTICULAR AREA AND WHY THIS MEANS SO MUCH TO THE STORY. >> I AM IN NASHVILLE, 80 MILES EAST OF NASHVILLE. IT'S A VERY SMALL TOWN OF 1000 PEOPLE. MUCH OF TENNESSEE ARE TOWNS LIKE THESE, RURAL, HAVE SEEN BETTER DAYS, HAD A LOT OF FACTORIES CLOSE. SOME POPULATION DECLINE. THIS TOWN IS VERY SIMILAR TO THAT. WHAT HAPPENED IS SOME FAR RIGHT VENTURE CAPITALISTS, REAL ESTATE DEVELOPERS SET THEIR SIGHTS ON THIS TOWN TO BUILD WHAT THEY CALL AN ALIGNED COMMUNITY. THIS IDEA THAT WE ARE SORTING OURSELVES INTO THESE FIBULAR ENCLAVES, AND THEY WERE GOING TO MAKE A BUSINESS INVESTMENT OUT OF IT. THEY ARRIVED IN TOWN THINKING THEY WOULD BE WELCOME BECAUSE IT IS A RED STATE AND A RED TOWN FULL OF CONSERVATIVE CHRISTIAN RESIDENTS, HOWEVER, THAT IS NOT WHAT THEY FOUND WHEN THEY GOT THERE. IT WAS A VERY DIFFERENT REALITY ON THE GROUND. SUSAN AND I FOLLOWED THAT BATTLE , THE PUSHBACK ABOUT THE IDENTITY OF THIS TOWN, WHO WAS GOING TO BE THEIR NEW NEIGHBORS, AND WHAT WAS GOING TO COME OUT OF THE BUSINESS ENDEAVOR. TIM: SUSAN, I'M WONDERING IF WE GO BACK TO THE BEGINNING, WHEN THE PEOPLE IN GAMES WHERE I FIRST REALIZED THESE NEW FOLKS WERE COMING IN, THE SO-CALLED PIONEERS. WHAT SPARKED THE INITIAL ALARM AMONG LOCALS THAT SAID, WHAT ARE THESE GUYS DOING HERE? SUSAN: TWO THINGS. THE REAL ESTATE DEVELOPERS HAD ALREADY BOUGHT UP SOME PROPERTY, BOTH IN THE TOWN AND IN THE COUNTRYSIDE AROUND IT, OLD FARM LAND. THE FACT THAT THEY HAD BOUGHT IT AND NOBODY REALLY KNEW WHO THEY WERE WAS ALARMING FOR A TOWN THAT IS SO SMALL, WHERE PEOPLE GO BACK GENERATIONS, TEND TO KNOW EACH OTHER, HOW PROPERTY CHANGES HANDS. SO THERE IS THAT. BUT WHAT WAS EVEN MORE ALARMING FOR THEM WAS WHO CAME WITH THE REAL ESTATE DEVELOPERS, AND THAT WAS TWO PODCASTERS. TIM: NOT YOU TWO. DIFFERENT PODCASTERS. SUSAN: SO MANY PEOPLE HAVE PODCAST NOWADAYS. BUT THEY SAID ON THEIR PODCAST, WHAT THEY WROTE IN A BOOK OR TWO, ARTICLES WAS LANGUAGE AND IDEAS THAT PEOPLE IN A TOWN WERE NOT USED TO HEARING FROM PEOPLE WHO WERE GOING TO BE THERE NEIGHBORS. IT WAS CONSERVATIVE CHRISTIAN BUT ALSO A LOT OF OTHER THINGS, AND THAT IS WHAT THEY STARTED TO REACT TO. ARE THESE THE KINDS OF PEOPLE WHO ARE GOING TO BE COMING AND LIVING IN OUR TOWN? LISA: WHY DID THEY CHOOSE THIS TOWN? SUSAN: GAINSBOROUGH, AND WE WERE SAYING, IS A DISTRESSED COMMUNITY, BUT A LOT OF PEOPLE HAVE SPENT A LOT OF TIME BUILDING IT UP. SO THERE IS A REALLY DELIGHTFUL TOWN SQUARE WITH GREAT RESTAURANTS, A MODERN ART MUSEUM . I THINK THAT WAS APPEALING, BECAUSE THERE IS A SENSE OF COMMUNITY THERE. I THINK ALSO THERE IS A LOT OF LAND. IT IS RELATIVELY AFFORDABLE. TIM: MERIBAH, I WANT TO BRING YOU BACK IN AND TALK ABOUT THE FOLKS THAT YOU MENTION, THE VENTURE CAPITALISTS, WHO HAVE TIES TO IN WASHINGTON, WHO THEY HAVE TIES TO IN THE VENTURE CAPITAL COMMUNITY. MERIBAH: THAT WAS A REALLY INTERESTING PART OF HOW THIS UNFOLDED. SEEING WHAT WAS UNDER THE SURFACE OF THIS INITIAL PODCASTER SURVIVE, THEY SAY THEY ARE PART OF THIS COMMUNITY, AND THEN YOU START TO FOLLOW THE MONEY ESSENTIALLY. WHERE THE MONEY LEADS YOU IS TO HARVARD LAW GRADUATES, ONE OF WHOM IS A VENTURE CAPITALIST NAMED NATE FISHER WHO LIVES IN TEXAS, ANOTHER IS JOSH AT THE TOY, THE REAL ESTATE DEVELOPER WHO MOVES HIS FAMILY TO GAINSBOROUGH TO HEAD OF THIS ALIGNED COMMUNITY. BEYOND THAT, THERE IS MONEY FROM SILICON VALLEY, MARK ANDREESSEN IS AN INVESTOR IN THIS, THERE ARE TIES -- ONE OF THE EPISODES, BE A LINK IT TO MOSCOW, IDAHO, DOUG WILSON. AS PEOPLE HAVE LEARNED, THE MOST FAMOUS PARISHIONER IN HIS CHURCH IS PETE HEGSETH. ONCE YOU START -- THERE ARE QUICK TO INVESTORS. ONCE YOU SEE THE TENTACLES OF THIS THING, YOU REALIZE IT IS NOT JUST SOME KIND OF RELIGIOUS EXTREMIST MOVEMENT, IT IS SOMETHING THAT IS MUCH MORE TIED INTO THIS MOMENT IN OUR COUNTRY, BOTH POLITICALLY AND CULTURALLY. THE MONEY FLOWS OUT INTO THE BROADER CONSERVATIVE REPUBLICAN MEGA DONOR SPHERE. LISA: THIS IS PART OF A FOUR-PART SERIES. HOW DOES THE STORY PROGRESSED FROM HERE? I AM GUESSING YOU DIVE INTO THE PEOPLE OF THE TOWN. SUSAN: WE SPEND A LOT OF TIME WITH FOLKS WHO CALL THEMSELVES THE RESISTANCE IN GAINSBOROUGH. THEY ARE THE ONES WHO OWN BUSINESSES THERE, OR HELP OUT WITH THE MODERN ART MUSEUM, CONTRIBUTE TO THE COMMUNITY IN OTHER WAYS. THEY HAVE COME TOGETHER OVER THE PAST ALMOST TWO YEARS TO PUSHBACK IN WAYS THAT PROBABLY YOU WOULD ONLY SEE IN A SMALL TOWN. TO HAVE A SIT-IN AT A LOCAL DAIRY QUEEN, PUTTING UP LAWN SIGNS, MAKING T-SHIRTS. THEY ARE WORKING TOGETHER. THEY ARE CONTINUING TO PUSHBACK IN THE WAYS THAT THEY CAN. THE RESOURCE MISMATCH IS QUITE EXTREME, AS YOU CAN IMAGINE, BUT THEY ARE VERY CREATIVE, RESILIENT. BUT THERE IS NEWS. WE DID OUR LAST INTERVIEWS JUST DAYS BEFORE THE LAST EPISODE OF THE PODCAST AIRED. THAT WAS BECAUSE THERE WAS AN ANNOUNCEMENT THAT THE REAL ESTATE COMPANY WAS INVESTING IN A FACTORY THAT WAS GOING TO MAKE COMPONENTS FOR DRONES, AND THEY WANTED TO BRING JOBS TO THE AREA. SO THAT IS SOMETHING THAT NOW THE PEOPLE THAT WE'VE BEEN TALKING TO AND LOTS OF OTHERS IN THE COMMUNITY ARE TRYING TO UNDERSTAND. IS THAT SOMETHING THAT IS GOOD FOR US? NOT EXACTLY WHAT THEY IMAGINED FOR GAINSBOROUGH, BUT WHAT DO WE DO NOW? TIM: 20 SECONDS LEFT. IT SEEMS LIKE VENTURE CAPITALISTS AND ENTREPRENEURS INCREASINGLY WANT TO CREATE THEIR OWN SPACES, LIKE THE CALIFORNIA MOVEMENT, COLONIZING MARS, THAT SORT OF THING. COULD THIS HAPPEN SOMEWHERE ELSE? SUSAN: ABSOLUTELY. THE INTENTION IS THEY WANT TO SCALE IT UP. THEY WANT TO JUST DRIVE IT HERE AND THEN MAKE ANOTHER INVESTMENT ACROSS THE COUNTRY. TIM: THANK YOU TO BOTH OF YOU AND CONGRATULATIONS ON THE LAUNCH OF THIS PODCAST. OUR TOWN, FOUR-PART SERIES. IT'S A LIMITED RUN PODCAST FROM BLOOMBERG NEWS AND IHEART. SHE IS HERE IN NEW YORK RIGHT NOW. SUSAN BERFIELD IS SENIOR INVESTIGATIVE REPORTER FOR BLOOMBERG NEWS. BOTH HERE ON SET IN THE BLOOMBERG BUSINESSWEEK STUDIO. ON A DAY THAT WE ARE SEEING STOCKS TO THE UPSIDE, HALF A PERCENTAGE POINT ON THE S&P 500, WE HAVE STOCKS ON THE MOVE TIM: IT IS "BLOOMBERG BUSINESSWEEK DAILY." THAT IS LISA MATEO. LISA: 7 A.M. TO 10:00. IT'S A LATE MORNING. CHRISTINA RUFFINI, DAVID GURA, IT WILL BE A GREAT WEEKEND. TIM: YOU HAVE SOME MORE DAYS WITH US HERE. LISA: TODAY IS LIKE MY MONDAY. TIM: S&P 500 UP 0.4%. NASDAQ COMPOSITE OF 0.3%. DOW IS UP HALF A PERCENTAGE POINT. YOU WERE TALKING ABOUT OIL. THAT HAS BEEN OUR FOCUS THIS WEEK. WTI AND BRENT SLIGHTLY HIGHER. AND HE MOVED TO THE UPSIDE FOR CERTAIN FOLKS IS A PAINFUL ONE. WTI FUTURES FOR THE NEXT MONTH UP TO $90.81 A BARREL. BRENT UP $95.42, BOTH UP MORE THAN 56% FROM THE BEGINNING OF THE YEAR. 10-YEAR, 4.79%. TIM: TIM STENOVEC ALONGSIDE LISA MATEO. LET'S TAKE A LOOK AT STOCKS ON THE MOVE TODAY. WE ARE JOINED BY DENITSA TSEKOVA. DENITSA: LET'S START WITH UBER. TICKER UBER. A STOCK IS UP MORE THAN 2% ON THE BACK OF NEWS OF LAYOFFS. THE COMPANY IS LAYING UP 3300 EMPLOYEES, ABOUT 10% OF STAFF GLOBALLY. THEY ARE REDUCING THE MANAGEMENT LAYERS, REALLY INVESTING INTO THE ROBOTAXI PART OF THE BUSINESS. IT IS INTERESTING, BLOOMBERG INTELLIGENCE ESTIMATES THIS WILL BE AROUND $2 BILLION IN ANNUAL SAVINGS. YOUR TO DATE, THE COMPANY WAS STRUGGLING EVEN WITH TODAY'S RALLY, DOWN 6% YEAR TO DATE. PERHAPS WITH THAT RESTRICTION, THEY ARE HOPING TO GET SIMPLER AND FASTER. THEY ARE CUTTING A NUMBER OF MICRO-TEAMS, ONE OR TWO PEOPLE. THEY ARE BETTING BIG ON ROBOTAXI PARTNERSHIPS. WE ARE SEEING MORE THAN $10 BILLION OF INVESTMENTS IN THAT FUTURE. INTERESTING THAT FOR THEM. TIM: WHAT WAS NOTABLE TO ME, I READ THIS NOTE FROM SOMEBODY AT UBER. THERE IS A PART HERE ABOUT REMOTE WORKERS. HE ONLY WANTS ABOUT 1% OF THE ENTIRE WORKFORCE TO BE WORKING REMOTELY. I'M THINKING EVERYONE IS IN THE OFFICE FIVE DAYS A WEEK. NO, THREE DAYS A WEEK IN THE OFFICE. NOT TOTALLY GOING BACK TO THE OFFICE, JUST NOT ABLE TO BE FULLY REMOTE. DENITSA: UBER HAS BEEN ONE OF THOSE TECH COMPANY THAT HAS NOT BEEN DOING LAYOFFS. WE SAW A BIG TREND IN TECH AND THIS IS THE FIRST STEP FOR THEM. THERE IS A QUESTION OF WHERE IT STOPS. IS THIS AN INITIAL STEP? LISA: PG&E COME NOTHING TO DO WITH LAYOFFS. DENITSA: WE HAVE BEEN TALKING ABOUT THE CALIFORNIA WILDFIRE SITUATION. PG&E AND EDISON HAVE BEEN MOVING DOWN THIS WEEK. THE COMPANY PLANS TO DEFER ABOUT $2 BILLION OF INVESTMENTS NEXT YEAR. THE MOVE COMES AFTER THE COMPANY SAID THE PROPOSED REVAMP OF THE CALIFORNIA WILDFIRE RESPONSE DIDN'T DO ENOUGH TO PROTECT THE COMPANY'S. OF COURSE, BOTH COMPANIES WERE RALLYING INTO THAT DECISION. WE HAVE SEEN SOME OF THAT RALLY BEING FADED. NEVERTHELESS, IT'S BEEN PRETTY PAINFUL THE PAST FEW DAYS. PG&E SHARES DOWN AS MUCH AS 10%. TICKER IS PCG. GAVIN NEWSOM HAD PUSHED SOME MEASURES TO PROTECT THOSE COMPANIES, THEY DIDN'T MAKE IT INTO LEGISLATION. OBVIOUSLY, A VERY COMPLEX CASE. IT IS REALLY HARD TO FIGURE OUT WHO COVERS THE COST OF ALL ABOUT. IT'S A VERY COMPLICATED ISSUE. BUT THINGS ARE NOT LOOKING TOO GREAT FOR THE COMPANY EVEN THOUGH IT REAFFIRMED ITS FULL GUIDANCE FOR THIS YEAR. THERE ARE DEFINITELY QUESTIONS ABOUT EARNINGS GOING FORWARD. TIM: PG&E IN CALIFORNIA. FROM CALIFORNIA TO LAS VEGAS. DENITSA: SEVERE ENTERTAINMENT SHARES ARE UP. UPGRADE FROM GUGGENHEIM. IT IS THE HIGHEST ON THE STREET, 208 DOLLARS. THE STOCK IS UP 6%. WE ARE SEEING AN INTERESTING TREND. THE COMPANY SAYS, THE ANALYST SAYS THEY ARE SEEING MORE SMALL AND MIDSIZE SPHERES IN DIFFERENT STATES. THAT SOUNDS EXCITING. AND EVEN BIGGER ONE IN ASIAN MARKETS LIKE SOUTH KOREA, JAPAN. WE ARE SEEING SOME SOFTNESS IN SOME DATA FOR AUGUST, BUT GOING FORWARD, THINGS ARE LOOKING GOOD. THEIR TARGET IS OPTIMISTIC. THE STOCK IS UP 135 PERCENT LAST YEAR, 50% THIS YEAR. EVEN WITH THE DAMAGE WE SEE TODAY -- WITH THE RATHER WE SEE TODAY, THEY WERE ALREADY SOARING. TIM: CAROL AND I WENT. WE WERE OUT IN LAS VEGAS. DENITSA: TEAMBUILDING. TIM: WE PAY FOR OUR OWN TICKETS. WE SAW "THE WIZARD OF OZ." JUST MONDAY, SPHERE AND AS THEY ARE ADDING ABOUT 40 VISUAL EFFECTS. I DON'T WANT TO GIVE ANYTHING AWAY. IT IS PRETTY WILD. I HAVE NOT SEEN A CONCERT THERE. LISA: I HAVE HEARD THE CONCERT AND ARE AMAZING. TIM: WE WILL GO TO A TEAM BACKSTREET BOYS CONCERT THERE. THE NEEDS IS A COVE WITH THE DAYS STOCK MOVERS. CHECK OUT OUR STOCK MOVERS PODCAST FOR THE BIGGEST WINNERS AND LOSERS.