Bloomberg Talks

Michael McGrath, European Commissioner for Justice, dives into the urgent need for enhanced consumer protection in the EU, especially regarding online sales. He discusses France's probe into Shein, highlighting concerns over dangerous products on the platform. McGrath emphasizes the necessity for the EU to have 'more teeth' in enforcing safety regulations. He also touches on recent efforts to strengthen ties with China and the Digital Services Act's role in combating online disinformation and enhancing consumer rights.

Nobel laureate Paul Krugman, renowned economist and professor, joins the discussion on the economic fallout from the US government shutdown. He highlights the unprecedented low in consumer sentiment and critiques the proposal for $2,000 checks as fiscally irresponsible. Krugman also addresses the complexities of measuring economic impact due to disruptions like air traffic control issues and concerns over delayed economic reports, cautioning about a 'ghost month' affecting labor and inflation data.

Alberto Musalem, President of the Federal Reserve Bank of St. Louis, provides insights into the U.S. economy's resilience, with growth near potential despite uncertainty. He discusses the cooling labor market and contrasts spending patterns between high and low-income households. Musalem emphasizes the importance of balancing monetary policy risks and urges a focus on a 2% inflation target as many households struggle. He also highlights firms' concerns about non-interest cost pressures and the implications of rising debt on consumer vulnerability.

Mary Daly, the President of the Federal Reserve Bank of San Francisco, dives deep into inflation and productivity. She warns that maintaining high interest rates too long could echo past mistakes from the 1970s. Daly discusses the potential of AI to drive productivity growth, showing optimistic trends across various firms. She emphasizes the importance of monitoring firms' pricing intentions to gauge inflation pressures. With a focus on the labor market, she details how recent changes indicate demand shifts and examines how monetary policy still functions effectively despite perceptions to the contrary.

Jason Robins, Co-founder and CEO of DraftKings, shares insights about the company’s striking partnership with Walt Disney Co. to become ESPN's official betting site. He emphasizes the significance of the ESPN deal, suggesting it as a strategic advantage for DraftKings. Robins also discusses the potential of predictions markets and the importance of careful investment and data-driven marketing. He expresses optimism about the company’s financial turnaround and growth, revealing a strong confidence in the brand's future.

Rick Rieder, Chief Investment Officer of Global Fixed Income at BlackRock, shares insights on the current economic landscape. He argues for lower Fed rates to support small businesses and housing. Rieder highlights the importance of data in shaping BlackRock's investment strategy, including credit card analytics and AI tools. He discusses record bond sales amid tight financial conditions and raises concerns about frothy valuations in the tech sector. Rieder also emphasizes the need for yield-curve stability and a careful Fed transition.

Andrew Bailey, Governor of the Bank of England, discusses the current state of UK monetary policy amid pressures from public figures like Nigel Farage. He elaborates on his decision to hold interest rates at 4% and the factors influencing future monetary decisions. Bailey also explores the implications of artificial intelligence on productivity, expressing caution about market valuations. Additionally, he addresses concerns regarding private credit risks and emphasizes his commitment to completing his term despite external pressures.

Cathie Wood, Founder and CEO of ARK Invest and known for her bullish stance on Tesla, dives into the controversial pay package of Elon Musk. She defends it, asserting the incentives align with long-term success. Wood also discusses ARK's valuation prediction for Tesla, emphasizing the importance of robotaxis. She reflects on current skepticism in the tech sector, likening it to the late '90s, and identifies buying opportunities in life sciences and AI in healthcare. Her insights illuminate ARK's strategic position in a changing landscape.

Esther George, the former President of the Federal Reserve Bank of Kansas City, shares her insights with Bloomberg hosts Jonathan Ferro and Lisa Abramowicz. They discuss the current lack of consensus within the Federal Reserve and the challenges posed by mixed labor market signals. George highlights how rising federal debt complicates monetary policy decisions and could lead to increased inflation. She also considers potential future rate paths, indicating that uncertainty will likely persist as policymakers navigate these complex issues.

Valdis Dombrovskis, the EU's Economy and Productivity Commissioner, dives into pressing economic issues. He discusses innovative strategies for utilizing frozen Russian assets to fund support for Ukraine. The conversation also highlights the EU's engagement with China regarding rare earths and the implications for supply-chain resilience. Dombrovskis outlines efforts towards regulatory simplification, aiming for a more efficient EU while balancing external pressures and maintaining its autonomy.