17 Burst results for "Brian Chapada"
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"James has shot in history. LeBron stands alone. The NBA's all time scoring record. Now belongs to LeBron James. That's right, LeBron James is now the NBA's all time scoring leader as you just heard courtesy of TNT. Here's King James speaking to reporters after that milestone. You know, I'm a soaring at a game, so I know what, you know, guys like Kareem and wild and MJ and magic and bird, you know, has Robinson, I was in beta, I can be up here all night, talk about so many greats and legends. You know, for me, personally, you know, it's just an honor to be just named with the greats. LeBron James there are speaking to reporters courtesy of ESPN. That's LeBron on the court, but he's doing pretty well for himself off the court's scarlet, his net worth is now estimated to be around $1.1 billion. So for more, let's bring in Bloomberg wealth team leader Brian chapada, who also covers sports, Brian Japan, LeBron James made headlines this week because of course he became the top scorer in the NBA surpassing Kareem Abdul-Jabbar. But you guys took a look at his business empire and the numbers are going up here. Yeah, I mean, we've long suspected that LeBron was a billionaire, but this seemed like obviously a natural time to go back and take a step back and look at just how impressive LeBron has been both on and off the court. We value his overall fortunate about $1.1 billion. That's a combination of all the salary that he's gotten, the various sponsorships, his investments, and also his businesses, springhill company, the entertainment business that he runs with his longtime business partner. Among them. So it's really impressive because he's obviously still playing and still very much at the top of his game in the NBA. And yet he's also really, really been accomplished off the court as well. And what's most amazing is the portfolio of investments that he's made, right? I mean, he's not an old man, so for him to now own and convert through ownership of Liverpool, a 1% state confederate sports is pretty impressive. I mean, he owns a piece of Fenway sports card outline, but also beats electronics, which was sold to Apple for 3 billion back in 2014. I mean, just some incredible moves. Talk to us a little bit about some of the advice Warren Buffett gave him. Yeah, I thought that was pretty funny when I was going back and thinking about this story. I wanted to see kind of what kind of stuff that he's heard from business luminaries. And Buffett was basically asked to address LeBron's question of what should I invest in back in 2015 and he said, just do an index fund, man. Passive investing. You have been every year. You're really good at basketball, but you're not gonna also be really good as an investor. It's the same advice that you have to 99% of my clients, the people who ask, and that's pretty funny because I think LeBron has proven to be the exception rather than norm. It's possible that obviously pass investing would have yielded a lot of money for him as well because he brings in $44.5 billion this year. But at the same time, he's done really well for himself off the court too. And I think that really speaks to the he's embraced the moniker of King James for so long that he's known he was going to be a successful basketball player and he's known that as a result. He's going to have to take care of his finances. And I think it's been honestly just pretty impressive overall how he's managed to do that. And he's basically created a blueprint for other professional athletes. Back in the day, pro athletes signed endorsement deals. That's how they made their money along with their salary. But this is a whole different level of building equity in companies associating yourself with brands kind of becoming more than just LeBron James of the Cleveland Cavaliers or LeBron James of the LA Lakers. Yeah, I think it's a really great point. And it's something that obviously through this podcast we're able to see. It's just this maturation of the professional athlete from just not really knowing what to do with becoming a multi millionaire overnight to really thinking hard about the role models that they want to follow. And yeah, building that equity finding brands that they believe in and not just endorse them, but also kind of have a stake and have a skin in the game when it comes to ultimately building a fortune. And building a family business because of sun brawny is an elite prospect. And so at some point, a lot of this will generationally transfer over to his children, but I'm more of the point that by the time this is said and done, you know, he could be playing with his son. I mean, this is a 38 year old man who's playing in the prime of his career with over a $1 billion in the bank. I mean, he can play pretty much as long as he's healthy, right? Wouldn't you say? Yeah, I mean, I was just looking back at his stats and it's really incredible if there's been really no drop off. I mean, I think it speaks to obviously his frame of mind, his willingness to put in the work in the gym, but he's ranking near the top of the league again and points rebounds assists amazing. Obviously the Lakers are not having a great year. And it doesn't look like they're going to be getting that much greater. But at the same time, he is still in peak condition, and it looks like, yeah, his stated goal is that he would love to play with his son who is a top 50 prospect right now senior in high school. Yeah, something else that I know you and Damien have been buzzing about is some personnel moves at a certain team in New York, not the next. Not the next no. The Brooklyn Nets, Brian, what do you think about the Brooklyn that's in what they're doing over there? It's certainly seems like a rebuild. Doesn't it? It's basically the end of an era in the sense of the super team that Brooklyn was trying to build. Remember, James Harden was obviously on the team. That was supposed to be the team that took them to the championship that justified a $3.5 billion purchase from Joe psi. And now we're pretty much in rebuilding mode. You know, I guess what comes next for Joe Tsai. I mean, the
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"Profile. There's been a lot of focus on it. TV networks have made a killing off of college football and they will continue to do that. You have a very motivated owner which the Padres do, which the Phillies do, which the Yankees do, you spend. I think sports may be driving some of these streaming services as they go forward. There's a shelf life to be internationally. You have to figure out what the pivot is going to be. Bloomberg, business of sports. From Bloomberg radio. This is the Bloomberg business of sports show where we explore the big money issues in the world of sports. I'm Michael Barr. I'm scarlet fu. And I'm Damien Sam. On the show today we'll talk with Steve cannon. He's the vice chair of AMB sports and entertainment, which handles Arthur blank's sports interests, including the Atlanta Falcons, Atlanta United soccer and the state of the art Mercedes Benz stadium. When you build a $2 billion facility, right? If you think about it as a factory, Michael, it's not doing anything if it's empty. So it's our job to fill up that factory. We've got ten foot falcons football games. We've got around 18, 19, 20 soccer matches with our soccer franchise Atlanta United, usually about a half a dozen college football games. We have the semifinals, this past year, and then as many concerts as we can possibly squeeze in. That plus private events. So we do our best to keep this thing humming. That is straight ahead on the Bloomberg business of sports, but first we want to talk about teams up for sale. And there are a number of pro franchises that are on the market right now for a lot of different reasons. Valuations, though, keep going up. Just ask Bloomberg's Brian ciabatta. It's been pretty staggering. We have the Bloomberg billionaires index have actually had to revalue some of our billionaires multiple times because the valuations of these franchises just keep going up. It's been pretty incredible to see there's been a lot of wealth loss. Those who own these sports franchises seem to be relatively immune from that. That is Bloomberg's own Brian chapada on
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"Sports show where we explore the big money issues, the world of sports, I'm Michael Barr. I'm scarlet fu. And I'm Damien SaaS, Howard. On the show today we'll talk with Steve cannon. He's the vice chair of AMB sports and entertainment, which handles Arthur blank's sports interests, including the Atlanta Falcons, Atlanta United soccer, and the state of the art Mercedes Benz stadium. When you build a $2 billion facility, if you think about it as a factory, Michael, it's not doing anything if it's empty. So it's our job to fill up that factory. We've got ten falcons football games. We've got around 18, 19, 20 soccer matches with our soccer franchise, a landing united, usually about a half a dozen college football games. We have the semifinals. This past year, and then as many concerts as we can possibly squeeze in, that plus private events. So we do our best to keep this thing humming. That is straight ahead on the Bloomberg business of sports, but first we want to talk about teams up for sale. And there are a number of pro franchises that are on the market right now for a lot of different reasons. Valuations, though, keep going up. Just ask Bloomberg's Brian ciabatta. It's been pretty staggering. We have the Bloomberg billionaires index have actually had to revalue some of our billionaires multiple times because the valuations of these franchises just keep going up. It's been pretty incredible to see. There's been a lot of wealth loss. Those who own these sports franchises seem to be relatively immune from that. That is Bloomberg's own Brian chapada on the business of sports podcast talking about skyrocketing sports team valuations. To take us through the latest with teams going up for sale and more, we welcome Sal. He is the president of Galileo's sports partners, the leading firm in the sports finance and advisory business. He's also business of sports professor at Columbia business school, Sal. Welcome to Bloomberg business of sports. That's a great build up, but I'm actually nobody. Far from it. There are a lot of teams out there for sale, and the future is, I don't know what's going to happen to the future. Some of these, I think the latest one is the news about the Phoenix Suns and the mercury. Tell us about that and what's going on because this is looking good. Look, I have never seen more demand for professional sports franchises than I've seen now And I've been doing this for 30 years. It's not like I just started, okay? Why? Okay? All right. Think about this. When I started in this business, 30 years ago, my first client was a San Antonio spurs. They were playing in the Alamo dome. They had the big curtain that went across the globe. Remember that? Yeah. All right. You could have bought the San Antonio spurs for $80 million. No joke, okay? $80 million. What is that with the 6th man's contract? Maybe not maybe not even the 6th man, okay? But why a value's gone up, right? It's not like you have a whole bunch of dopey people that have decided geo, just start overpaying for this stuff. There were a bunch of reasons, okay? So look, one and the most important is media content value, right? You guys know that you're in the media, all right? There's no content like this. As technology continues to improve and people can record their favorite shows and edit out the commercials. There's no content like this 99.5% of people have watched sports, watch it live. I mean, if your favorite team is already played, you're not recording it unless you got off a plane from Tokyo or something. And watching it, you're watching it live. What are the content can you say that about? So that's the first thing. The second thing is, this is an unbelievable alternative asset class. Unbelievable. It is so resistant to recession. And I'll give you an example, okay? Because I'm good at giving exactly. We want three weeks before bear Stearns blew up. I was going to say went bankrupt, but somebody out there is going to say they never really went bankrupt okay, yeah, they did, but the government saved them. Very weak. I got hired by the ricketts family to represent them to buy the cups. Okay? So keep going. During the process, the world banking system collapsed, Lehman Brothers went bankrupt, AIG should have gone bankrupt. The tribune companies, which owned the freaking cops. Went bankrupt, they had 13 and a half billion $1 billion of liabilities, so we had to take the cubs through a bankruptcy sale. We're taking three years. It must be taken. Three, four years. Yeah, it took three years from the day they signed, they signed me up to the day we closed. Wait. We still wound up paying $845 million, which at that time was the highest price ever paid for a baseball team. In the worst recession I've ever seen. Now, you could say it's the cops. Okay, there were 7 control sales, 7 during the Great Recession. This was the auction. When Major League Baseball didn't want you to do the auction, right? No, no, that's the Texas range that I got more of that. Okay, so wait, so wait, 7 sales, 6 of them set record prices. The only one that didn't was the Pittsburgh Steelers sale, and that's because one of the brothers born in the other brothers at a below market price because in that auction, I had a bitter all cash or cash that would have made it the highest price of a paid for an NFL team. What other asset class can you say that about in the Great Recession? None. Okay, so you got that. Okay, you have scarcity value. Now, I'm not that bright, so I don't remember a lot from my economics classes, but I remember this. They don't make any more of these things. I mean, once every 20 years, 30 years, they haven't expansion, but basically supplies fixed. If supply is fixed and demand goes up, price goes up. That's
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"Little bit of green on the screen. Lots of earnings, lots more eco data. Boy, it is busy, this week in the marketplace. Let's break it all down, do a little round table thing. Bloomberg markets correspondent Abigail Doolittle, and Bloomberg wealth team leader Brian chipata joins us here with a really cool story that we'll get to back. Adani, who I didn't even know who he is, but if you type in rich go and your Bloomberg terminal, he's a fourth richest dude in the world, but he's lost. He's had a tough week here. What did you find out? It was like huge when he overtook, I did not. You didn't, I wasn't just dialed into that. I mean, you know on the Bloomberg, you can type R ICH go and see if that's what I just highlighted. Yeah, I'm all over it. But I didn't get to this gentleman. All right, let's start off with the Abigail. What are we doing in the marketplace here today? Well, we're looking at a turnaround to the upside surprise surprise. It seems as though 2023 is really the year of investors wanting to stocks to go higher. And the importance of that is why, what are they seeing? It seems like the current narrative right now is some sort of a soft landing. I think that maybe some folks I believe Paul that you may believe that the fed next week is going to talk about some kind of a pause. I know you mad on the other hand think that they should actually go sides of this trade. Yeah, so it's going to be interesting to see what happens. Knowing the fed, they probably will come in exactly where they're expected to, 25 basis points, and then indicate I would think what they've been indicating all along that they are going to continue on the hiking path, but it's likely to be that at each meeting, each hike is going to be on the smaller side, so I guess that would be 25 basis points. And keep going along. I'm calling for them. I'm still pulling for them to do 50. I know who you are. I know you are. That would be a surprise. That would be a surprise. To me, it's not just, you know, if they're going to do 25, they might as well do nothing. That's success on their part because think about it from a year ago, a 25 basis point hike at that point. That was kind of significant because we came out of the years of cutting cutting cutting cutting. So the idea that now 25 basis points seems like nothing, you could say that's one signal that they've actually normalized policy, successfully, and that they're but here's the thing. If they just do that, if they do a couple 25s and then they chill out at 5, right? And then the Chinese reopening drives 1.4 billion people to fill up their cars with gas and then prices start to store because the European recession is as bad as it was and then inflation comes back to 10% next year. They're going to look bad. Excellent point. And I don't think that they're going to do 25 and 25 and chill. I think that they might just keep kind of doing 25, 25, 25, that will be doing. And then if things really seem like that they were overheating in a way that would cause inflation to come back at that point, maybe they would reintroduce through all their fed talk channels and their different channels, somehow reintroduce the idea of 50. Well, Michael McGee will be down. You can put them on an excel at train next week. A good analogy. Do you see the story about the fact that people are missing out on car payments at a higher rate than they were since the great financial crisis? I know. And the anecdote in the story is a guy who couldn't afford his car payment so then you guys car repo, then he got fired from his job. So now we can't really afford groceries, even on food stamps, and he might even not be able to pay rent. But isn't it? I've seen some of these, I saw another story not so long ago and started to interrupt, but that car payment. Some people have car payments of a $1000 or $1500. 5 multiple of those. Oh, really? Oh, no, no. All right. I typed in rich go because mister Miller suggests that I do so when I came upon this dude number four, what Tom adani. Who is this dude? Bloomberg wealth team leader Brian chapada joins us here in our studio as well. Who is guatema Donny? And what's going on with his biz? He is the richest man in Asia. He is India's richest person. He's shot up still. Still, yes. But he's down quite considerably large so far this year to date. Well, he's down at another 50 billion to that. He's down. He's down $20 billion. Wow. On the clothes on Indian markets. It's his biggest wealth loss ever. By a large margin. If you look at one of our stories from yesterday, I mean, his ascent up the wealth charts was dramatic. You look at last year, he gained more in terms of wealth than any other person on the planet at a time when tech billionaires were seeing their fortunes tumble. Basically everything was going down and his adani group was going up. And what do they do? There were a lot of they do everything. Basically, I mean, truly, when you think about India's economy, they're involved in airports, they're involved in ports, they're involved in coal. They're also involved in green energy. They're involved in gas. I mean, it's a conglomerate in the green energy. Well, so the thing is, you want to use air quotes. Right. Well, the thing is, is the Modi administration, obviously, is trying to expand more into green energy, renewables, things like that. And a Donnie is kind of handed glove in that in that effort. They're close. They're tight those two. Yes, they have a very close relationship. And so that has kind of propelled his fortune and has made a lot of people comfortable with the idea that the adani group will succeed because if they succeed, then the country succeeds. And now all of a sudden you have a small New York research shop Hindenburg research coming in and saying, this is actually not sustainable. There's a whole bunch of shell companies. There's a lot of fudging going on. And as a result, we are shorting them, and we suggest that you do as well. So in this is where the story gets super interesting, right? Because unlike Paul, I've been following the rise of adani for a year now. And but Nate Anderson is this kid, right? Hindenburg research, I love the name. Yes. That's a great name. He should have called it Led Zeppelin research. That would have been cool, too. Do you know the hidden burg, there's a technical pattern called the Hindenburg and not surprised. And where did that go down? Where did the hidden go down? Montclair or something? No. Anybody? Elizabeth? Lakehurst, New Jersey lakehurst. Okay. In any case, this guy has taken down a couple of smaller shops, right? But he's never tussled with sent a billionaire before. Yeah, I mean, he's taken down electric vehicle makers, Nikola, most prominently in most recently, who CEO at the time, Trevor Milton is now
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"This is Bloomberg business of sports. The World Cup is coming out today since 2026. That will book and just a fantastic growth in sports. So when the World Series certainly helps to have stars. But everyone is looking at these prospects earlier than ever, especially now that you can sign and pay talent in college. When you get into the playoffs, there's nothing better as a player. Re signing guys like, you know, the young great hunter coming off of their rookie deals. Everything starts to become a little bit more expensive. Our thesis is really around how to use sports as that lands to touch those massive adjacent markets. Bloomberg, business of sports. From Bloomberg radio. This is the Bloomberg business of sports show where we explore the big money issues in the world of sports. I'm Michael Barr, Scarlett foo, and Damien sass sauer are off. Coming up on the show, we are going to talk pickleball, Bloomberg, quick take chief correspondent Jason Kelly talk with one of the sports latest big name investors Larry Fitzgerald. I just started really falling in love with the game is really community based. She really grow relationships and is one of the only sports I've ever played where four people can get on the court who have never played before and can be having a good time once they understand the rules in 5 minutes. You know, there's not many things like that. We're going to take a listen to their conversation about how major league pickleball is looking to grow. Plus the NHL's winter classic is helping to ring in the new year for hockey fans. We'll hear a special conversation with Jason Kelly an hour own scarlet foo. They talk with NHL commissioner Gary bettman. As the demographics of the world, our world, North American world changes, we need to recognize that if we're going to be relevant going forward. We're also going to look ahead to some of the sports storylines that we're looking forward to heading into 2023 with Bloomberg's Jerry Smith and Brian chapada, but first we have to talk about someone a giant in the sports world who has passed. Pelé, the Brazilian star of the beautiful game of soccer, as he called it, has died at the age of 82. He was battling colon cancer. With us is Bloomberg's Andrew rosati, he is in Brazil, Andrew, thank you so much for joining us on the Bloomberg business of sports. My pleasure. This is sad news all around the world, not only for just soccer, but obviously for Brazil because Pelé was huge there. Yes, I think huge might even be an understatement. In Brazil, many simply call him the king. His cultural significance here. It really can't be overstated. When he died yesterday or we got news that he had died, he had been in a hospital in São Paulo for over a month. There was an immediate outpouring on social media from Brazilian debal stripes here. And it's really telling a nation that politically divided Brazil used quickly saw members of incoming president blue as cabinet snapping out condolences and both as well as president J outgoing president jair Bolsonaro. I think for all Brazilians, I was some form of significant. He won three World Cup championships, and as a kid, I remember him later on when he was presented on ABC's wide world of sports to show you how long I go back. Jim McKay was doing the commentary then. And this is when Pelé went to the cosmos later on. He played for a long time, and I just remember his last words when he signed off when he retired from the pitch was love. And that was all about Pelé. Right. I think often as we read these obituaries, people often point out that he was constantly smiling and former teammates often say that he was a pleasure, both on and off the field. And I think when we talk about the significance here in Brazil, a lot of it is that he served not just as an ambassador to the sport, but also as an ambassador to Brazil. People have pointed out that when he first came onto the scene and his teenage years, didn't have World Cup title. That's kind of crazy to think about now is Brazil was the World Cup leader, but he really transcended just the sport and really brought the name of Brazil to so many countries abroad. And I think many people here are very proud of that. And they really looked up to him in that way. It's also the point that out. It's also really in the tributes coming out to Pelé, the famous Christ statue that looked out of a really Gennaro was lit up in yellow and green colors as a tribute to Pelé. Andrew rosatti, Bloomberg's own in Brazil on the death of Pelé, who died after a battle with colon cancer at the age of 82. Andrew, thank you so much for joining us on the Bloomberg business of sports. Thank you. Now we turn our attention to the year ahead, 2023. Let's bring in Bloomberg's Jerry Smith and Brian Japan to get a check in on what big sports stories are coming around the corner this year. Good to be here. Thanks for having us. Let's start with teams that are up for sale. And Brian, I'm going to start with you. Let's start with the teams that are out there. That have really piqued the interest of a lot of people. Yeah, I mean, I think we have to start with the Washington commanders of the NFL. They're up for sale. And right now, reports are out there that it could be a $6 billion deal, which as we know in 2022, the Broncos sold for about 4.6 billion. So we're talking a record by leaps and bounds here. And one of the reasons perhaps for that is because one of the people who reportedly interested in bidding is not under that Amazon's Jeff Bezos. Obviously, one of the world's richest people and he has basically an unlimited firepower as far as as far as bidding here. So combining perhaps with Jay-Z, perhaps with Matthew McConaughey, that are out there, but Bezos will be the bulk of this. There are other reported interested bidders, but the Washington commanders are really the one to watch in 2023. Brian, we hear so many times this team is going to be up for sale for X amount of money and everybody out there is like, who in the world would pay that much money for that. But then by the time if they ever have to sell the team, they're always making a profit. Yeah, I mean, we were just talking. I think in the show last week about the Phoenix Suns sale, $4 billion valuation for the Phoenix Suns and the WNBA's mercury. And that's a really large amount for Phoenix franchise. It's been pretty staggering. The Bloomberg billionaires index have actually had to revalue some of our billionaires multiple times this year because the valuations of these franchises just keep going up. It's been pretty incredible to see in a year where there's been a lot of wealth loss. Those who own these sports franchises seem to be relatively immune from that. Another team up for sale, soccer, or football as they say, overseas Manchester United right now, they're owned by the glazer family. They put the club up for sale last month. Some fans have been protesting about the way the glazer family has been handling that brand. Yeah, I wouldn't say that Manu fans really like the quasars very much right now. Jim ratcliffe is a potential suitor. That's going to be an interesting one to watch. His name was also floated for Chelsea, although ultimately get that. It's possible that Saudi Arabia could be involved. Again, they've obviously shown that they're willing to spend for
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"Year for hockey fans. We'll hear a special conversation with Jason Kelly an hour own scarlet foo. They talk with NHL commissioner Gary bettman. As demographics of the world, our world, North American world changes, we need to recognize that if we're going to be relevant going forward. We're also going to look ahead to some of the sports storylines that we're looking forward to heading into 2023 with Bloomberg's Jerry Smith and Brian chapada, but first we have to talk about someone a giant in the sports world who has passed. Pelé, the Brazilian star of the beautiful game of soccer, as he called it, has died at the age of 82. He was battling colon cancer. With us is Bloomberg's Andrew rosati, he is in Brazil, Andrew, thank you so much for joining us on the Bloomberg business of sports. My pleasure. This is sad news all around the world, not only for just soccer, but obviously for Brazil because Pelé was huge there. Yes, I think huge might even be an understatement in Brazil, many simply call him the king. His cultural significance here. It really can't be overstated. When he died yesterday or we got news that he had died, he had been in a hospital in São Paulo for over a month. There was an immediate outpouring on social media from Brazilian Duval stripes here. And it's really telling a nation that's politically divided, Brazil, you quickly saw members of incoming president blue as cabinet snapping out condolences and both as well as president J outgoing president jair Bolsonaro. I think for all Brazilians, I was some form of significant. He won three World Cup championships. As a kid, I remember him later on when he was presented on ABC's wide world of sports to show you how long I go back. Jim McKay was doing the commentary then. This is when Pelé went to the cosmos later on. He played for a long time, and I just remember his last words when he signed off when he retired from the pitch was love. And that was all about Pelé. Right. I think often as we read these obituaries, people often point out that he was constantly smiling and former teammates often say that he was a pleasure, both on and off the field. And I think when we talk about a significant here in Brazil, a lot of it is that he served not just as an ambassador to the sport, but also as an ambassador to Brazil. People have pointed out that when he first came onto the scene and his teenage years Brazil didn't have one cup title and that's kind of crazy to think about now is Brazil was a World Cup leader, but he really transcended just the sport and really brought the name of Brazil to so many countries abroad. And I think many people here are very proud of that. And they really look up to him in that way. It's also in the point that out, it's also really in the tributes coming out to Pelé, the famous Christ statue that looked out of a really Gennaro was lit up in yellow and green colors that attribute to pay life. Andrew Ross had a Bloomberg's own in Brazil on the death of Pelé, who died after a
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"Do it sort of gradually, they put everything online at once. And so there's just a lot of options for the way people watch. Thanks again to both Brian chapada and Chris Paul Mary for joining the show coming up. We shipped to compensation for college athletes and NIL at straight ahead on the Bloomberg business of sports show from Bloomberg radio around the world. On the latest edition of a tape podcast, a conversation with Michael sonnenfeld, founder and chairman of Tiger 21 on investing for the ultra wealthy. Can we draw any conclusions about average sort of investment? I mean, are they in these markets? Are they out? Do they like fixed income? Are they are they going for equities? Is there an outlook for 2023 that you can kind of pull from the whole picture? Yeah. So the big stories are that, as I said, private equity for the first time has trumped both real estate and public equity at about 29%. Fixed income is a little bit coming to life. People are liking short term rates for the first time for so many years. You were getting under 1%. Now you can see four and 5 and 6% both in municipals and high grade set really interesting. Hedge funds are still in the doghouse, only about 3% allocation. Kind of mind boggling given to where they were a decade ago. And cash cash at 12%, 11%. Wow. High levels of cash. But not for us. Our members have held this high level for a very long time. The public equity reduction to 25% says two things. First of all, if you take our real estate and private equity and add them up together, what you have is a little over 50%. Well, public equities are only 25%. What our members are saying is if you know how to invest in public private equity and you're not investing real estate, which is where our members created their wealth over time, you can probably do better than public equities. Catch more of this and other conversations on today's edition of the tape. Subscribe on Apple, Spotify, and anywhere else you get your podcasts. Plus, listen anytime on Bloomberg dot com.
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"This is Bloomberg business of sports. The World Cup is coming on stage in 2026. That will book and just a fantastic growth in sports. So when the World Series certainly helps to have stars. But everyone is looking at these prospects earlier than ever, especially now that you can sign and pay talent in college. When you get into the playoffs, there's nothing better as a player. Re signing guys like the Andre hunter coming off of their rookie deals, everything starts to become a little bit more expensive. Our thesis is really around how to use sports as that lands to touch those massive adjacent markets. Bloomberg, business of sports. From Bloomberg radio. This is the Bloomberg business of sports show. We explore the big money issues in the world of sports, Michael Barr. I'm scarlet fu. I'm Damien SaaS sour. On the show today we talk compensation for student athletes, Alabama senator Tommy tuberville, is one of a few lawmakers passionate about name image and likeness policy. We get his take on NIL. And what he's doing to support it. If we don't do something, if we don't do something probably in the next 6 or 7 months, we're going to lose what we all know is something that's been very good for thousands and thousands of young men and women who might not have the opportunity to get an education. And so we need to do what's right. We need to if people are good enough, young men and women are good enough to make money off their name image. I'm all for that. But again, it all goes back to the 99% of them that are there to get an education to better their future. We'll also hear from Jim cavell, who started a platform designed to help student athletes build their personal brands and navigate. All of that is straight ahead on the Bloomberg business of sports show, but first we hit on some of the big headlines this week, starting with the sale of the NBA's Phoenix Suns. The details of a $4 billion deal for it mad ischia to take control of both the Phoenix Suns and the WNBA's Phoenix mercury are being worked out. For more on what we know, we turn to Bloomberg's Brian chapada. Brian, thank you so much for joining us on the Bloomberg business of sports. Thanks, yeah, big deal indeed. Oh my goodness. Here we go, another big deal, more billions and billions and billions of dollars. This isn't going to stop until the earth stops spinning. Yeah, I mean, I think what's really interesting about this deal is for $4 billion. That's pretty high for the Phoenix Suns. Some of the valuation services out there have them at roughly 3 billion. I mean, just last year, they were valued at 1.55 billion in a minority sale. So when you think about 4 billion, it really goes to show just how frenetic the pace is right now among the billionaire class, trying to get a sports franchise, frankly. And Matt ishbi, who is going to take control of the teams, what do we know about him? Yes, he's a billionaire, but I don't recall seeing his name come up a lot as a potential buyer for any of these franchises that do come up for sale. Yeah, he's been in the background for a few of these franchise sales. So it seems like maybe this was the one where he really just through the highest number that he could just to lock one down. He became a billionaire via a spac sale during their heyday in 2020. His father founded united wholesale mortgage back in the mid 1980s. But it was actually just the spac sale that made him a billionaire. It was actually interesting because it went public via spac through Alec gores who is the brother of the Detroit Pistons owner. Tom gores. So there's actually a lot of really interesting connections when you actually dig a little bit deeper into that HBO who himself was a walk on basketball player at Michigan state. Bart's ears just perked up, by the way. Yeah, yeah, when you said Michigan state and the Detroit Pistons and I'm sorry. I'm sorry. And Tommy. And please, please continue. So Brian, for me, the real question here is if I'm reading this correctly, $4 billion price tag gets gets both the Phoenix Suns and the Phoenix mercury, of course, pretty grinder plays for the mercury. But if you look at it relative to what Joe Tsai paid for the Brooklyn Nets back in 2019, which was $3.3 billion, he also got the Barclays center and I don't believe this deal includes a stadium. So I wonder, I mean, is this price tag right? Is this, I mean, is it possible that Matt, this was overpaying for the suns? I mean, like I said, it does seem pretty high relative to where the valuations of the team were just last year in the minority sale. One thing to note is I believe that Jose got basically a control of the entire Brooklyn that's franchise he had already owned 49% and just got the other 51%. Our understanding with this deal is it's somewhere in north of 50 for Matt ishbi and his brother Justin. Possibly around 60%. So when you think about that, the actual overall cost for them straight up in terms of the franchise is probably ends up being roughly around the same as Joe si. Paid for his stake. So we're kind of hesitant to call it. It's definitely one of the biggest deals ever in the NBA. And obviously one of the biggest deals in any professional U.S. sport league. But it's kind of in that ballpark, but to your point, I mean, the nets are more valuable franchises and especially when you throw in the Barclays center real estate on top of that. This is a little delicate question, but the WNBA's Phoenix mercury. And because of the
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"It sort of gradually, they're going to put everything online at once. And so there's just a lot of options for the way people watch. Thanks again to both Brian chapada and Chris Paul Mary for joining the show coming up. We shipped to compensation for college athletes and NIL at straight ahead on the Bloomberg business of sports show from Bloomberg radio around the world. Bloomberg radio on demand and in your podcast feed. On the latest edition of the sound on podcast, a conversation with Eli yokley senior reporter at morning consult. On the most resonating stories this year. It's been quite a year. There's been a lot on Americans, but this is the 5th year we've done this project we call seeing red herd. We based it on hundreds of surveys we conduct throughout the year. And so this year, we were watching the midterms we were watching everything happening with legislative action on capital hill. But one thing that's been true for the last 5 years of this project is the events of the moment stand out. I mean, this year, the biggest news event, and it's time was the shooting and you ball day Texas have momentary school and that was followed by the fall of roe V wade and then the death of the queen. You know, all these stories that make the top three list hurricane ends up there too as well as the Russian invasion of Ukraine. All these stories in this top list are like made for TV moments and we remember wall to wall coverage earlier this year over the Russian invasion. The two weeks of coverage are more of the queen's death. The one that stands out in terms of how we think about the midterms is probably roe. Yes. This was a decisive moment in the minds of the American people. It was a 50 year precedent change. It had big weight in terms of just news value. But then it also weighed on a lot of voters. I mean, I'm standing talking to you from Kansas City right now. Over in Overland Park, Kansas is sort of the heart of the abortion debate this year. That's where we saw a lot of people respond pretty viscerally in quite a red state and voting to put abortion rights in the constitution cases. That was a big moment for the American people that stood out in a pretty big way. Get more of this and other conversations
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"To help student athletes build their personal brands and navigate. All of that is straight ahead on the Bloomberg business of sports show, but first we hit on some of the big headlines this week, starting with the sale of the NBA's Phoenix Suns. The details of a $4 billion deal for mad ischia to take control of both the Phoenix Suns and the WNBA's Phoenix mercury are being worked out. For more on what we know, we turn to Bloomberg's Brian chapada. Brian, thank you so much for joining us on the Bloomberg business of sports. Thanks, yeah, big deal indeed. Oh my goodness, here we go. Another big deal, more billions and billions and billions of dollars. This isn't going to stop until the earth stops spinning. Yeah, I mean, I think what's really interesting about this deal is for $4 billion. That's pretty high for the Phoenix Suns. Some of the valuation services out there had them at roughly 3 billion. I mean, just last year, they were valued at 1.55 billion in a minority sale. So when you think about 4 billion, it really goes to show just how frenetic the pace is right now among the billionaire class, trying to get a sports get a sports franchise, frankly. And Matt ishbi, who is going to take control of the teams, what do we know about him? Yes, he's a billionaire, but I don't recall seeing his name come up a lot as a potential buyer for any of these franchises that do come up for sale. Yeah, he's been in the background for a few of these franchise sales. So it seems like maybe this was the one where he really just through the highest number that he could just to lock one down. He became a billionaire via a spac sale during their heyday in 2020. His father founded united wholesale mortgage back in the mid 1980s. But it was actually just the spec sale that made him a billionaire. It was actually interesting because it went public via spac through Alec gores, who is the brother of the Detroit Pistons owner. Tom gores. So there's actually a lot of really interesting connections when you actually dig a little bit deeper into Matt HBO who himself was a walk on basketball player at Michigan state. Bart's ears just perked up, by the way. Yeah, yeah, when you said Michigan stayed in the Detroit Pistons and I'm sorry, I'm sorry. And Tommy. Please, please continue. So Brian from me, the real question here is if I'm reading this correctly, $4 billion price tag gets both the Phoenix Suns and the Phoenix mercury, of course, pretty grinder plays for the mercury. But if you look at it relative to what Joe Tsai paid for the Brooklyn Nets back in 2019, which was $3.3 billion, he also got the Barkley center and I don't believe this deal includes a stadium. So I wonder, I mean, is this price tag right? Is this, I mean, is it possible that this was overpaying for the suns? I mean, like I said, it does seem pretty high relative to where the valuations of the team were just last year in the minority sale. One thing to note is I believe that Jose got basically a control of the entire Brooklyn nuts franchise he had already owned 49% and just got the other 51%. Our understanding with this deal is it's somewhere north of 50 for Matt HBI and his brother Justin. Possibly around 60%. So when you think about that, the actual overall cost for them straight up in terms of the franchise is probably ends up being roughly around the same as Joe si. Paid for his stake. So we're kind of hesitant to call it. It's definitely one of the biggest deals ever in the NBA and obviously one of the biggest deals in any professional U.S. sport league. But it's kind of in that ballpark, but to your point, I mean, the nets are more valuable franchises, especially when you throw in the Barclays center real estate on top of that. This is a little delicate question, but the WNBA's Phoenix mercury and because of the Britney griner story, now that team obviously, many people know about the Phoenix mercury, forgive me for putting it this way and thank God that grinder is back home now in the U.S., has the valuation of that team just simply from the publicity, raise the valuation of it. I mean, that's a really interesting question. And one of the things that I was trying to figure out, but unfortunately we just have no insight into it just yet is kind of the breakdown between the valuation of the suns versus the valuation of the mercury in this whole package deal because Robert owned both franchises, obviously. And now the issue is will as well. But I think the moral of the story as you guys have chronicled throughout this past year is that women's sports has become much more high profile. There's been a lot of focus on it. And there's been a lot of money thrown in the space in anticipation that it will only grow. So I think it stands to reason that the Phoenix mercury is valuation will likely to continue on the trajectory that broadly women's sports has. There's another big sports story. The master says live players can now also play in the masters coming up in Augusta straight ahead about 16 players involved. What does that mean for the marriage of the PGA and for live golf or would it still be a strange? Let's put it that way. I mean, I think it was it would have been really a bad look probably for the PGA if they were to ban that. I mean, my understanding was that if you qualified, you're in. And I think you have to just, it's a really tough situation for the PGA because I think it's lion has been, we want to do what's best for golf long-term. And I think kind of being punitive, what kind of diminished that stance a little bit. The master's needs to show its independence, right? Yeah. It's not beholden to the PGA. Yeah, exactly. What this does do is it opens the door, obviously, it is for players like Bryson DeChambeau, Brooks katka, Sergio Garcia, pass winners, and, you know, people have one other majors like cam Smith to participate in the masters, but what does this mean for the FedExCup? What does this mean for the balance of the PGA Tour over the course of 2023? I think that's the remains in question. Special thanks for Brian Japan for taking us through that story. Now we turn to the NFL. And they just inked a big deal granting the rights to their massive Sunday ticket package to YouTube for more we turn to Bloomberg's Chris Paul Mary. Chris, thank you for joining us on the Bloomberg business of sports. Anytime. This is huge. I mean, we have talked about many streaming services joining sports and from football to baseball. Whatever, but this is huge, especially for YouTube. Yeah, you know, this is in a way sort of a symbolic passing of the torch. I mean, DirecTV, which was the current rights holder was an innovative satellite TV service in his day, but they just couldn't afford this anymore. And so now we have YouTube TV, which is an online equivalent of cable TV. You pay 65 bucks a month and get a hundred channels, but it's all streamed. And they're taking over the range for this in the 70 year deal. Chris, it's an old man like me. It's like, you know, if I still have the
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"All right coming up in this half hour we're going to check in with Dave Ellison He supports your manager of the Hennessey large and small cap financial funds Where is he putting his capital This year Plus we have interest rates higher inflation raging the fed raising rates Put on the bond markets I think going forward we're going to check in with Brian chapada He's a Bloomberg opinion columnist He covers the debt markets He is tied into all that stuff But first let's go to Greg Garret and get a Bloomberg business flash A stock you're up all the Dow at least is off its earlier highs We'll check him in just a minute treasuries are steady the dollar is weaker All this is traders look past data showing U.S. inflation to reach its highest level in almost 40 years to focus on expectations of the prices would soon peak Let's look at these numbers The S&P is up four tenths percent up 20 The Dow's up two tenths of a percent now up 72 in the NASDAQ is up 6 tenths of a percent up 90 It's in years up one 32nd the old 1.73% At West Texas intermediate crew has been the story of the morning up 1.3% at 82 29 a barrel comics golds have a quarter of a percent in 1822 70 an ounce the dollar yen one 1495 the Euro dollar 14 18 the British Family Dollar 36 85 The most U.S. inflation of four decades is reviving talk of Bitcoin being a hedge against rising prices and is lifting the coin to its highest in a weak Bitcoin right now is up 2.2% at 43,622 That is a Bloomberg business flash Matt Miller and Paul swe continued with Bloomberg markets All.
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"brian chapada" Discussed on Bloomberg Radio New York
"Karen That's right You as futures are in the green right now Dow futures up 93 points Sesame has gained 17 Well the NASDAQ futures are higher by 84 The U.S. ten year yield at 1.76% gold is up for oil is climbing and Bitcoin is little changed Japan fell .9% overnight while European markets are also in the green led by 1% gains in France and Germany Back in the U.S. on the economic front at 10 o'clock the Powell's nomination hearing begins and regarding earnings for albertson's report in the pre market In other news Goldman Sachs and UBS reiterated their bullish calls on equities and wrapping things up alcohol was cut to hold over at Deutsche Bank AMD raised overweight at key bank Citigroup is bullish on Macau but downgraded win resorts on valuation and IBM was cut to sell over at UBS Live from the first year of breaking news test on Bill maloney Cameron Bray Bill thank you and here lie breaking news over your Bloomberg types walk on your terminal squ AW K and that's a Bloomberg business flash Now here's Michael Barr with more on what's going on around the world Michael Darren thank you very much an investigation is underway into The Bronx apartment fire that took at least 17 lives including 8 children a space heater is being blamed for the cause of the fire but the apartment door did not close sending thick black smoke throughout the building New York mayor Eric Adams called it a global tragedy because many of the victims are immigrants from Gambia in West Africa A deal has been reached to get schools open again in Chicago Students will be back in the classroom tomorrow after teachers walked out January 5th The teachers union and the city reached an agreement over safety precautions around COVID-19 Georgia beat Alabama 33 18 to win college football's national championship in the NBA the Knicks and Celtics won the nets lost in the NHL the bruins beat the capital 7 three the rangers lost Global news 24 hours a day on air and on Bloomberg quick tank powered by more than 2700 journalists and analysts more than a 120 countries I'm Michael Barr This is Bloomberg The following commentary is from Bloomberg opinion Jobs report makes a march fed rate hike nearly a done deal I'm Brian chapada a commas for Bloomberg opinion Only a few hurdles remain before it's safe for bond traders to assume that the fed will start raising interest rates in March The U.S. economy just cleared a big one with the latest report on the labor market The unemployment rate tumbled a 3.9% beating projections for a dip to 4.1% Average hourly earnings jumped 4.7% from a year ago handily outpacing the median forecast For traders who are trying to pinpoint the fed's path it all boils down to the calendar of economic releases Next up consumer price index data that's expected to show a 7.1% increase from a year ago two weeks later comes a fed decision The Central Bank goes to painstaking links to signal to markets that it's about to do something meaningful with a 3.9% jobless rate and inflation that's expected to remain way above target It stands to reason that the fed couldn't start some language into its next statement that would prime markets for a march rate hike It's the new year and way past time for the fed to clean up the narrative The U.S. economy is in an inflationary boom and it's ready to move interest rates off the zero lower bound I'm Brian choppa for more opinion Please go to Bloomberg dot com slash opinion or OPI and go on the Bloomberg terminal This has been Bloomberg opinion And Bloomberg opinion commentaries can be heard every weekday at this time and terminal customers can read more at op N go It is 6 50 on Wall Street let's turn to news and science and technology.
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"brian chapada" Discussed on Bloomberg Radio New York
"Back better plan Even the scaled down one the Russian threat to Ukraine and how communicating over the new F 5G system could mean we can't fly in bad weather From the Bloomberg interaction broker studio in New York welcome to the second hour of balance of power I'm David Weston We've all been waiting for the complete rollout of the 5G network and it's promised provision of remarkable connectivity for communication of all sorts from mobile phones to the Internet of Things But now the aviation industry tells us that the next piece of 5G could interfere with airplanes ability to know their altitude which seems like something after all we would try to avoid We welcome now someone who was part of the 5G approval process Michael O'Reilly served as a commissioner at the Federal Communications Commission and he is now the principal of MP O'Reilly consulting So welcome It's great to have you with us I read this in the newspapers And I thought I didn't know this was coming Is this a real problem Or is this something the aviation industry is over stating Well thanks for having me I think it's something the aviation industry is overstating I understand the desire of FAA to be cautious for the air public But in this instance it was something that was raised as part of the consideration during the STCs approval for this particular band to C band 3.8 to 4.2 and really and the FAA mentioned it in other entities the altimeter industry came in and raise these issues But to that to the degree that it has now and actually didn't have a particular plan didn't know exactly what it was they were to say there might be a problem here And the commission the FCC bent over backwards to try to address the concerns And just at the last minute just before we get to the turn on December 5th of two big providers about to turn 5G the FAA shows up at this big concerns now We got to shut that off We got to hold off and we're kind of stuck right now So listen I'm not a scientist so I'm not going to understand your answer probably But in theory what's the problem It has to do with bad weather Is that right when the weather's bad some other could be interference I assume that the alternatives don't work in the C band Is it in the same frequency It's not in the same frequency It's actually above and 4.2 to 4.4 And the only reason it's bad weather is pretty much the only time you use altimeters We use that technology It's a backup technology It's actually a third technology So using other devices other things for landing and taking off of a plane The issue is when you have a 5G tower antenna close to an airport where they're taking a rising or landing does it cause the altimeters to misreport the altitude and therefore potentially to accidents or issues in bad weather Because that's only time they really rely on it So from your point of view understanding the way you do do you have a thought about why it is coming back up at this late stage in this way I understand it was raised before but I understand what you're saying There wasn't that big a deal and now it's coming back with a rush Yeah I think this is something that was asked and answered It was looked at by the previous FCC when I was there It was asked and answered by the administration that with the FC FAA had to respond to and make the case in front of the last administration And they didn't agree And now you have a new administration and the FA says well let's try again And this administration being where it is is cautious understandably about our travel and it's given some card watch in terms of letting him put out what I consider a scare tactic just a few weeks ago to the American public Yeah I understand that they wouldn't want to get it wrong But give us some sense of the consequences If in fact they changed their mind and said you're right you can't use this It's called the C band is that correct That's right What would be a consequences for the 5G network Well this is the biggest piece of mid band spectrum available The big three providers have bought the licenses and some others as well We're talking about $80 billion worth of investment in just the license itself and hundreds of billions of dollars in terms of networks And we're talking about what does it mean for the robustness of what technology is going to mean going forward and how many billions of dollars is going to mean for GP GDP going forward for the United States That's one thing But we're really talking about national security and U.S. leadership in wireless issues These are things we've been trying to get out in front on 5G for a number of years And this is the biggest piece to make that happen And if you pull the plug on that you're going to be you're going to see other countries including China Russia ahead and be fed far more advanced than the United States and wireless issues and set the stage for not only 5G but also 6 G so it's really a critical time period for U.S. wireless leadership So Michael take us through the process Who gets to decide whether in fact there's a real problem here that has to be addressed And how long would it take and all likelihood Well these things were considered and who looks at them during this SEC's consideration a couple of years ago The engineers do And office of engineering and technology considered the issues raised by the industry and the FAA and found them not to be credible enough to actually justify a full blown out what they were essentially asking at the time was not to do not to move forward on 5G in the C band And that was just the data didn't back that up The engineering didn't back that up And the commission went bent over backwards and trying to write some concerns including a guard band to help provide some more comfort but they couldn't they didn't agree So it's based on engineering So the question now is how do you get out of the mess we're in And that is a difficult scenario for those that are still in government trying to figure out how do we move forward into the numbers prove anything that FAA is suggesting And I suggest that they don't Do you have an estimate Is this a matter of weeks months years to resolve it finally Well we've got a temporary delay until January for the industry where the industry the big industry participants have said well hold off until January If we missed that deadline if it gets pushed on past January it could go on quite a while And that's very problematic I'd like to believe that cooler heads will prevail and we can move forward and have a successful 5G in the C band and the FAA's concerns can either be mitigated if absolutely necessary or acknowledged as not being a sufficient as a first rate Well it's a fascinating issue and really thank you so much for explaining it to me because I had read about it but I didn't understand it nearly as well as I do now after talking to you That's former FCC commissioner Michael O'Reilly Coming up is the fed caught between The Rock of zero rates and the hard place of inflation We talked with Brian chapada of Bloomberg opinion That's next on balance of power on Bloomberg radio.
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"brian chapada" Discussed on Bloomberg Radio New York
"Bloomberg business at and at Bloomberg quick take He's a Bloomberg business lash And I'm Karen Moscow and we continue to watch shares at Johnson & Johnson this morning of four and a half percent after it said it's going to split into two companies and that's helping to give Dow futures a lift this morning We get to the first word breaking news desk for today's morning call here's Bill maloney Bill good morning And good morning Karen That's right you as features are in the green right now with Dow futures up a 105 points that should be gained ten nasik futures rise by 41 He was a ten year old at 1.58% gold is down 13 oil is trading lawyer and Japan rose 1.1% overnight where you pay markets are trading mixed this morning Back in the U.S. on the economic front at ten o'clock Michigan sentiment and in other news Elon Musk sold an additional 640,000 Tesla shares worth around 700 million Wrapping things up beyond meat was put to market reform over at Bernstein Live from the first to break a new stats gone Bill maloney came All right Bill thank you Andy here live breaking news over your Bloomberg type squawk on your terminal SKU AWK and that's a Bloomberg business flash Now here's Michael Barr with more on what's going on around the world Michael Karen thank you very much The defense has rested its case in the murder trial of 18 year old Kyle rittenhouse closing arguments will be held Monday rittenhouse's attorneys say he was defending himself from an attack and had no choice when he shot three men in Kenosha Wisconsin during street protests The prosecution says rittenhouse was the instigator The lawyer for detained U.S. journalist Danny finster says a court in military ruled Myanmar has sentenced him to 11 years in prison after finding him guilty on several charges including incitement for allegedly spreading false or inflammatory information The army seized power of Myanmar in February In Thursday Night Football and upset the dolphins beat the ravens 22 ten in the NHL the Devils beat the islanders for zip the bruins lost the capital was won Global news 24 hours a day on air and on Bloomberg quick take powered by more than 2700 journalist and analysts in more than 120 countries I'm Michael Barr This is Bloomberg The following commentary is from Bloomberg opinion Even JPMorgan can't escape all the job quitters I'm Brian chapada a columnist for Bloomberg opinion It's not quite Wall Street's version of the great resignation but it's not too far off either JPMorgan's equity derivatives desk is faced a wave of defections this year part of a growing trend across the financial industry like other workers bankers are increasingly basing their career decisions on more than just money This trend is reflected in the quits rate a measure of employee initiated job separations It reached a record high 2.9% in August compared with 2.3% at the start of 2020 The fact that JPMorgan and other Wall Street institutions aren't immigrated turnover at their highest ranks is good reason to think that the labor market's tightness is quite persistent It also raises tough questions What does company loyalty worth if the new higher rate level is making significantly more money Will forms raise their pay scales internally to retain employees or will they just accept whatever turnover happens It stands to reason that much of corporate America is dealing with similar issues After all if JB diamond is an impervious to later market forces no one is I'm Brian chapada For more opinion please go to Bloomberg dot com slash opinion or OPI and go on the boomer terminal Base has been Bloomberg opinion Bloomberg opinion commentaries Can we hear it every weekday at this time and terminal customers can read more at op.
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"We have our debt markets columnist Brian chapada in the studio today at the interactive brokers Complex inside 7 31 Lexington avenue The mothership as we call it he's writing about the fed ignoring a key bubble risk for the stock market or maybe can I say bubbles plural Brian Sure You can say that crypto But they're not saying it No they don't use the word bubble No I mean they don't say bubble They didn't say it in May even though they flagged a lot of financial stability concerns The thing they don't really talk about a lot is real yields And that is something that you just see written about over and over talked about over and over you see real rates hit record lows and there's basically no choice but to buy risky assets because your alternative is that you buy fixed income you buy treasuries and you get a negative inflation adjusted yield It doesn't seem worth it to a lot of people Brian what pops the bubble I mean that's a good question I mean I think right now you're seeing inflation go up tremendously and you're seeing stocks barely off their all time highs So it's not clear what exactly happens The fed's reaction function right now is to just look through this inflation keep their fed funds rate at record lows It's at the lowest since the 1970s when you adjust it for inflation The fed funds rate So rates are staying really low and it's going to be a question of whether the fed blinks whether they flinch under political pressure I think To do something to slow inflation down next year is the crucial midterm elections after all The 70s were bad by the way Chanel For those of you who weren't there I'm going to remind you that's when the Mustang turned from a boss muscle car into an embarrassment Plus we had incredible inflation There were people parked around the block waiting to get gasoline oil prices went nuts And as Greg Garrett was just saying his mortgage was like 14% Yeah I mean because the fed had to raise rates right And now you get a mortgage for 3% basically So nominal rates are still extremely low And that does raise this risk that if you can't get anything and fixed income you have to go to the stock market Some of the statistics that I cited from the fed's own data is that you look at people who are 65 to 74 even though 75 and older and stock holdings have never before been such a core part of their portfolio because after a decade of near zero interest rates you just can't count on fixed income anymore Even if you're in retirement Well yeah I mean the other thing about this too is that the market is already expecting some they're planning for rate hikes next year That's what's the plan right But the thing is what about this idea that Mary Daly had brought up to our own Mike McKee a little bit earlier This idea that we're still in COVID this is gonna be transitory I mean that seems to be the parting line from most fed officials but how do you know that Yeah I mean one of the things I don't think this is spoiling anything because I tweeted about it if I do have a column coming out pretty soon You look at this idea that the inflation guy on Twitter basically came out and said I'm looking for an outlier in this inflation data and I can't find one And that's a scary thing And the idea that it's just COVID and that's the thing things are just going to come out Right that's the scale not the length Yeah I mean I think the question is is can you just blame used cars again Some people might try to but I think it's starting to feel as if there's more broad based price pressure And you look at the New York fed statistics on consumer expectations for inflation three year inflation expectations still had a series high one year expectations still going up over 5% now It's getting baked into the cake a little bit here in terms of inflation expectations The fed has talked about how they wanted to get inflation expectations up because they want to be able to conduct monetary policy They are above the zero lower bound and they're there And yet we're still at zero And so I think the question has to become at a certain point why is zero the baseline for the fed funds rate And that all comes back to the real yields When you see them so deeply negative that's because the fed funds rate is held at not expected to go up You know real wage growth is even more of a problem Because inflation is growing at a faster pace than wages are So even if this is transitory if it all stops at the same time the stuff that I need is still cost is costing more than what I'm getting paid And that's going to continue to increase unless they can turn it around The problem that I have is I don't see what the fed can do about inflation that's caused by supply constraints Right Monetary policy doesn't help Right I mean the question ultimately has to be is it the fed's job to constrain demand If you have demand at a super elevated level and supply is not what they want to do right That's the surgeon who declares his job of success because the patient is dead In some ways yes but I said that right I think I get it I don't want to really think about surgeons killing anyone But I think I get it but the point is is if demand is running so hot should the fed cut back a little bit and had children Powell said that current inflation is not at all consistent with price stability and price stability is one of the fed's band aids from Congress Boring for just a second here I mean if you're a saver you're getting decimated Unless you're investing in.
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"From Bloomberg world Hank waters I'm Charlie How about stocks lower Choppy session let's head right over to the first word breaking news desk for today's afternoon call Here he is Bill maloney Good afternoon Charlie That's right You have stocks trading in the red and somewhat quiet trade with the Dow currently down a 132 points SUVs dropped 12 NASDAQ is lower by 11 The bond market was closed and gold is down three points while transports are little changed and Bitcoin jumped 3.7% Among the main 11 SB sectors materials and Staples led while utilities and telecom were under pressure Leaders of the upside in the Dow Home Depot and Salesforce while Visa fell 2% and led to the downside In other news Emerson reached an $11 billion software deal with Aspen technology and Jamie Dimon said that I personally think Bitcoin is worthless Wrapping things up Elliot urged healthcare trust of America to conduct a strategic review Live from the first or bacon news desk on Bill memorial Okay we thank you very much Bill and to hear live breaking news over your Bloomberg type squawk has cue you a WK on your terminal I'm Charlie peloton That is a Bloomberg business flash All right Charlie thank you so much so big news And really I think it might still be our most read story on the Bloomberg has to do with two kingpins behemoths icons pick yourself in the private equity space we're talking about Henry kravis and his cousin George Roberts quintessential dealmakers who have dominated global private equity for almost half a century Tim they are seating their leadership roles at KKR They're making a way for hand picked successors essentially the next generation Yeah watershed moment for private equity At least according to our next guest Brian chapada a Bloomberg opinion columnist who covers debt markets Brian give us your take on this big news coming out of the private equity world because it also comes at a time where we're seeing other huge private equity firms make big transitions as well Yes KKR was really the one to watch though when you think about the big private equity firms Carlyle had already made its made its move you had Apollo that was sort of a forced decision with Leon black and the controversy around him and his ties to Jeffrey Epstein Blackstone meanwhile still under Steven Schwartzman So KKR obviously the K and one of the K's and VR are now stepping down So it was kind of seen as the real the real interesting one because they thought of the firm in 1976 They've been at it for four and a half decades So there was some question about okay when are these guys going to pave the way and pave the runway for the next generation And now we're seeing it It's interesting too right Considering what we've already seen in private equity was this a case of the guy's getting older they had to do something They could lose talent if they didn't soon do something in terms of officially putting successors in place What are you hearing What are you thinking What's your observations here Yeah I think that was definitely a part of it I mean there was a lot of speculation about okay if there is no move to have new CEOs step in for them whether people would ultimately go elsewhere and try their hand elsewhere So this suggests that things are moving as they were planning the Succession time was started a few years ago but there wasn't really a ton of movement on that front until obviously now So now the question is going to be whether they're ready for the future and just the massive size of these private equity firms I actually wrote that even hard to call them private equity firms anymore because private equity is just such a small part of what they do especially if you look over at Apollo and they've done with a theme And it's just incredible They're massive They're like I went back to look at the assets under management and they're just huge So Brian talk a little bit about how private equity I mean it's hard to say it's shifted because this is private equity right Under these two guys at KKR How has it shifted though in recent years and how has it changed in recent years Yeah There's definitely been a push to have some more stable capital coming in Apollo really pioneered this with It's Athene deal They ultimately went ahead and did a 100% purchase of it earlier this year And basically all the others have had to follow suit So they're looking for ways that they can continue to generate steady returns rather than have to take all this money that they have I mean combined Apollo Blackstone Carlyle KKR well over half a $1 trillion in assets under management I mean if they don't want to have to go chasing all these private equity deals that might not pan out if you start to really go after things that are a little too risky So they want to find stable sources of capital to supplement what they do best which is fine attractive private equity opportunities and buyouts Well that's the other thing right The bread and butter PE business I mean there's so much money out there There's so much of P E money and other investment money kind of chasing similar targets And you do wonder how that becomes a little bit tired to be doing that getting too competitive and then the prices that you may be having to pay pay up for because there is so much competition for a limited amount of targets That's kind of what's just ended up happening here with institutions and wealthy individuals They've said okay I can get basically nothing in fixed income when adjusted for inflation I could buy public equities They're very pricey right now It looks like and we're seeing them coming off the record highs So where do you go You call your call your private equity firm and you try to see if you can get some returns that way But to your point between private equity between private credit there's a lot of money chasing all these strategies right now So everyone's trying to scale up and deploy capital at $2 billion $3 billion at a time just to just to get a lot of money out there and put it to work So help us look forward for this new generation of leaders in private equity especially at KKR what do the next 30 40 years look like Oh man I mean right now I think we're seeing a real inflection point and a transition point within private equity where like I said it's not just.
Bloomberg Radio New York
"brian chapada" Discussed on Bloomberg Radio New York
"Was cut to hold the Jeffries and big logs could do neutral Over at piper Live from the first year breaking news desk on Bill maloney Karen All right Bill thank you to your live breaking news over your Bloomberg tabs walk on your terminal squ AWK that's a Bloomberg business flash Now here's Michael Barr with more on what's going on around the world Michael Karen thank you very much President Joe Biden plans to use his first address before the UN General Assembly to reassure the international community of American leadership In this morning's address President Biden will call on allies to address the pandemic climate change and human rights abuses You can hear the president's dress live right here on Bloomberg An autopsy today in Wyoming could bring a positive ID to a body believed to be that of 22 year old Gabby petito Her boyfriend Brian laundry remains missing and a person of interest Prime minister Justin Trudeau won a third term in Canada snap election however Trudeau fell short of regaining the majority of parliament Major League Baseball the Yankees won in their fight to gain a wildcard spot The nationals lost the Orioles won the a's lost Monday Night Football the packers down the Lions 35 17 Global news 24 hours a day on air and on Bloomberg quick tank powered by more than 2700 journalists and analysts to more than a 120 countries I'm Michael Barr This is Bloomberg The following commentary is from Bloomberg opinion Evergreen panic comes just in time for big banks I'm Brian cephalo a commas for Bloomberg opinion Morgan Stanley warned that a 20% drop in the S&P 500 was a growing risk Goldman Sachs analysts have said investors shouldn't assume low volatility will last left unsaid These two U.S. banks tend to benefit should those forecasts come to fruition Wall Street's biggest banks are in the final days of a quarter that many expect will show a sharp decline in trading revenue relative to the three months through June This is a particularly painful reality for Goldman and Morgan Stanley where trading made up 47% and 39% of overall revenue in 2020 Traders had any number of reasons to be busy on Monday The prospect of the crisis that indebted developer China ever grant group no longer being contained let's imaginations run wild about possible contagion risks in the world's second largest economy Should those fears continue to grip global markets and especially if they prove unfounded These final days of the third quarter will likely be a boon to bank spot lines I'm Brian chapada for more opinion Please go to Bloomberg dot com slash opinion or OPI and go on the Bloomberg terminal These has been Bloomberg opinion And Bloomberg opinion commentaries can be heard every weekday at this time and terminal customers can read more at op N go At a 6 50 on Wall Street let's turn to news and science and.