Cate Ambrose discusses private equity deals and trends, while Heather Spilsbury talks about increasing gender diversity in corporate governance. The podcast also covers Fed Chair Jay Powell's testimony, the controversy surrounding Reddit's API usage, and market conditions.
Reddit's decision to monetize API usage has sparked backlash from developers, raising questions about how value creators online should be compensated.
Despite concerns about overvaluation, investors are embracing the momentum of the stock market, fueled by a large influx of cash on the sidelines.
The future direction of interest rates and inflation remains uncertain, with differing arguments about potential rises and historical trends.
Deep dives
Reddit's Controversial API Changes Spark Developer Backlash
Reddit's decision to start charging for API usage has led to backlash from developers and resulted in parts of the site going dark. The API is commonly used to gather data for AI training models. The controversy stems from Reddit's desire to monetize the API usage, which affected not only developers making AI models but also app developers creating tools for Reddit users. The backlash highlights the broader issue of who creates value online and how they should be compensated for it.
Embracing the Boom: The Momentum of the Stock Market
Despite concerns about overvaluation, many investors are embracing the momentum of the stock market. The market has seen a significant rally in recent months, with a large influx of cash on the sidelines driving the upwards trend. While some argue that the fundamentals do not support the current momentum, there is a belief that the market will continue to rise due to the massive amount of available cash. This rally has been characterized by a few key stocks driving most of the gains, creating a potential risk if these stocks were to falter.
Predicting the Future of Interest Rates and Inflation
There is ongoing debate about the future direction of interest rates and inflation. While some investors believe that rates are set to rise and inflation will pick up, others argue that historical trends suggest otherwise. The duration of interest rate trends has been historically long-term, spanning periods of 20 to 25 years. Additionally, inflation tends to increase over a longer period of time, typically lasting between four and nine years. The uncertainty surrounding the future of interest rates and inflation has implications for investment strategies and portfolio allocations.
Navigating the Reddit IPO, Developer Backlash, and Monetizing Data
The recent controversy surrounding changes to Reddit's API usage and the resulting developer backlash could impact the company's upcoming IPO. Reddit's decision to charge for API usage has received pushback from developers who rely on the API to train AI models and create tools for Reddit users. The outcome of the situation could have implications for the company's business model and future success. Additionally, the broader question of how to monetize data and compensate content creators in the digital landscape remains a challenge for many platforms.
Riding the Momentum of the Stock Market Despite Fundamental Concerns
Despite concerns about overvaluation and fundamental support, many investors are riding the momentum of the stock market. The recent rally and influx of cash on the sidelines have driven the market higher. While there are uncertainties about the market's direction, momentum and investor sentiment continue to outweigh concerns. However, longer-term concerns about interest rates, inflation, and valuation suggest potential risks for the market in the future.
Bloomberg News International Economics & Policy Correspondent Michael McKee and Bloomberg News Economics Editor Molly Smith break down Fed Chair Jay Powell’s testimony before the House Financial Services Committee. Cate Ambrose, CEO of the Global Private Capital Association, discusses deals and trends moving the private equity industry. Heather Spilsbury, Chief Operating Officer at 50/50 Women on Boards, talks about supporting an increase in gender diversity in corporate governance. Bloomberg Businessweek Editor Joel Weber and Businessweek Technology Editor Joshua Brustein share the details of Joshua's Businessweek Magazine story Reddit Revolt Previews Social Media’s Future in the AI Era. And we Drive to the Close with Phil Toews, CEO at Toews Asset Management. Hosts: Carol Massar and Matt Miller. Producer: Paul Brennan.
