Bloomberg Talks
00:09:31 · Ralph Schlosstein, Dani Burger, Isabelle Lee
[00:09:31] S0: You know, I think disappointing is a very strong word. [00:09:33] S2: Okay, it is a very strong word. Okay, but not just that, because again, this idea that you get pushback. The states have been quite active as well. I mean, all you need to look at is the Paramount deal and what California did. Excuse me, considering some of the local elections, do you expect states also to continue to push back against various deals that get done? [00:09:51] S0: Well, in these areas, states have de minimis standing in reality. [00:09:58] S1: And. [00:09:58] S2: you. [00:10:00] S0: Know, I think I was not involved in the Paramount discussions or the transaction. But my guess is that Paramount, even though they probably would have won in court, made a decision. We want to get on with this and let's make a, you know, a set of milk, which was of modest proportions. And that California probably agreed to that because they knew their legal case was not as strong as they would want. So I don't, you know, in a lot of areas, the states and the localities have huge influence, including over elections, but in antitrust, not really. [00:10:43] S1: If we choose to stay local, let's go to Texas, because that saw the first Democratic win since 1990s, and Bloomberg Invest had a conference there. Danny was the headline for much of that. And entangled with Texas is data centers, and roughly a third of the data centers that are set to be built are in Texas. What do you make of that? Do you think that we will see more roadblocks ahead?
00:10:43 · Isabelle Lee, Ralph Schlosstein, Dani Burger
[00:10:43] S1: If we choose to stay local, let's go to Texas, because that saw the first Democratic win since 1990s, and Bloomberg Invest had a conference there. Danny was the headline for much of that. And entangled with Texas is data centers, and roughly a third of the data centers that are set to be built are in Texas. What do you make of that? Do you think that we will see more roadblocks ahead? [00:11:01] S0: I don't think this is going to be a black or white thing. I mean, I think, you know, AI is the single biggest thing that's happened in my business lifetime. It's incredibly important to America's competitiveness, and we're not going to stop progress. I do think things will slow, but even in the Democratic leaders, I mean, you look at Josh Shapiro, for example, in Pennsylvania, His position is let's have them slow down, but I'm not against them as long as they don't cause higher utility bills and higher taxes for the localities. So the position I think that the Democratic Party, leaders will ultimately come to is not, you know, let's go back to the railroad ball, you know, to ball bearings, but let's have progress, but let's have progress that doesn't hurt the less well-off and less able to defend themselves, people in our society. [00:12:11] S2: While slowing down doesn't derail AI progress, it certainly has in past instances, and certainly today injected fear into markets, core weave, all the data center plays down quite significantly. Is this slowly becoming, or maybe quickly becoming, a less favorable environment for Anthropic to IPO into?
00:12:11 · Dani Burger, Ralph Schlosstein
[00:12:11] S2: While slowing down doesn't derail AI progress, it certainly has in past instances, and certainly today injected fear into markets, core weave, all the data center plays down quite significantly. Is this slowly becoming, or maybe quickly becoming, a less favorable environment for Anthropic to IPO into? [00:12:28] S0: Well, I think you look at what stocks are doing today, you couldn't say that's an unfavorable environment. [00:12:34] S2: Sorry, I'm always looking for the doom and gloom. I'm a skeptical journalist, Ralph, but please continue. [00:12:39] S0: And look, Anthropic is a fantastic company. And, you know, I hearken back to the 1999-2000 2001 period when we had a much more of a bubble than we have today and I remember doing an analysis you know I was at BlackRock at the time and Cisco which is a great company in order to justify the valuation that they had they had to capture 150% of the global router market that obviously was not going to happen so Clearly, there are some companies that have too frothy evaluation. And there are some companies who are going to, you know, will become the pets.coms of the world. [00:13:30] S2: Where should we look for the froth? Where do you see it? [00:13:32] S0: You know, right now, almost anything AI attracts some amount of money. Not all of these companies are going to. Grow into their valuations. But there will be some, 10 years from now, we're gonna be sitting here staring at a several trillion dollar value company that didn't exist 10 years ago.
00:13:32 · Ralph Schlosstein, Isabelle Lee
[00:13:32] S0: You know, right now, almost anything AI attracts some amount of money. Not all of these companies are going to. Grow into their valuations. But there will be some, 10 years from now, we're gonna be sitting here staring at a several trillion dollar value company that didn't exist 10 years ago. [00:14:01] S1: And earlier you said that there's no place you'd invest in other than America, and I'm sure many would agree. [00:14:05] S0: I didn't say no place, I said it's the best. [00:14:07] S1: Best place, yeah, distinct difference. So let's take a best place. Do you think that investors should prepare for higher corporate taxes and also more regulation? under this new administration?
00:14:07 · Isabelle Lee, Ralph Schlosstein
[00:14:07] S1: Best place, yeah, distinct difference. So let's take a best place. Do you think that investors should prepare for higher corporate taxes and also more regulation? under this new administration? [00:14:20] S0: That is certainly a possibility two years from now. And I remember in 2016, I was in Paris election night, and I was awakened at five in the morning by Ed Hyman, who was the head economist at Evercore ISI at the time, and he was in Japan And he said, I have to speak to a bunch of institutional investors in an hour. What should I say? And at that time, the S & P was down 100 points, 5%. And I said, Ed, I just woke up. But if you want to be provocative, here's what I would say if I were delivering that speech. I would say that by the time the New York Stock Exchange closes at 4 o'clock in New York, stocks will be up. And he said, really? Why are you saying that? And I said, well, because we're going to have lower corporate taxes, we're going to have a stimulative fiscal policy, and we're going to have lower regulation. Those things are very good for stocks, and people will quickly realize that. Last night at 1 o'clock, I switched very briefly from CNN to Bloomberg and saw the S & P was down 30 points. And I said, gee, I wish I was on the show right now so I could say that stocks will be up.
00:14:20 · Ralph Schlosstein, Dani Burger
[00:14:20] S0: That is certainly a possibility two years from now. And I remember in 2016, I was in Paris election night, and I was awakened at five in the morning by Ed Hyman, who was the head economist at Evercore ISI at the time, and he was in Japan And he said, I have to speak to a bunch of institutional investors in an hour. What should I say? And at that time, the S & P was down 100 points, 5%. And I said, Ed, I just woke up. But if you want to be provocative, here's what I would say if I were delivering that speech. I would say that by the time the New York Stock Exchange closes at 4 o'clock in New York, stocks will be up. And he said, really? Why are you saying that? And I said, well, because we're going to have lower corporate taxes, we're going to have a stimulative fiscal policy, and we're going to have lower regulation. Those things are very good for stocks, and people will quickly realize that. Last night at 1 o'clock, I switched very briefly from CNN to Bloomberg and saw the S & P was down 30 points. And I said, gee, I wish I was on the show right now so I could say that stocks will be up. [00:15:41] S2: Next time you call in, I'm going to give you my phone number after this because I was there. You should have called me and told me this. Ralph, thank you so much for joining. Great to see you. Ralph Schlosstein, Evercore Chairman Emeritus and BlackRock co-founder. This is Bloomberg.