Bloomberg Talks
00:09:58 · S2, Rick Wurster, Carol Massar
[00:09:58] S2: I don't know. [00:09:59] S1: Well, you look at examples like Hugging Face, and there's been others where agents maybe do things that they weren't intended to do. And by the way, I'm very pro-AI. I think AI is terrific, and it's going to help us in lots of ways. But the idea that you might expose all your money or give your password and credentials to an AI agent, that's That makes me very nervous and certainly makes us nervous that our clients would do that, which is why we don't allow it. But we will create safe ways in because we know clients want to use large language models. We've got two ways for clients to engage with us and use their large language models. but in a very safe and secure way. [00:10:33] S0: So, Rick, I've got to say, every morning I think I feel like Tim and I get up separately. But we are a little stressed. Sorry, a little joke, a little levity. No, but we talk about, sorry, large family, you know, crazy stuff. [00:10:47] S2: The wars. [00:10:48] S0: Sorry, now I'm going to do a hard term. Midterms. There's just AI. There's just so much coming at investors right now. And I know you and John Beattie, right, did a keynote earlier, and you guys were kind of talking about the outlook. How do you see the outlook right now? [00:11:03] S1: Well, the markets are strong. The economy is strong. And that's a good place to be. Employment's good. [00:11:08] S0: Why does it always feel so bad, though?
00:11:08 · Carol Massar, Rick Wurster, Tim Stenovec, S2
[00:11:08] S0: Why does it always feel so bad, though? [00:11:10] S1: Well, there's always things to be concerned about. And the market doesn't love uncertainty. And the midterms create uncertainty. But we'll get past that soon. And if you look at the past midterms, 19 of the last 19 midterms, after we've got through them, the market's gone up. So maybe we'll make it 20 in a row. But, yes, there's been uncertainty. But I think what's kept the markets continuing to go... is that the economy's strong, you're seeing incredible productivity growth, this birth of AI that's driving a lot of incredible level of investment, certainly level of investments I've never seen in my career. So fundamentally, there's a lot of great things happening. [00:11:45] S0: What's one risk that you keep on your mind? [00:11:49] S1: I think to me the biggest risk is inflation because the way inflation could hurt the markets is if bond yields continue to go up, there's a lot of debt in the world. And so that debt becomes more expensive. The discount rate on equities becomes higher. And so I think inflation is something to watch. [00:12:08] S0: Yeah, and it seems to be a little bit persistent, right? Thank you so much. [00:12:12] S1: Thanks for having me on. I always love coming on and seeing you too. I always have a great time. [00:12:16] S3: We have fun with you too. [00:12:17] S2: Thanks, Rick. It's always good to see you. Thank you. [00:12:19] S0: Rick Wurster, of course, President and CEO of Charles Schwab Corporation.