AI Debt Concerns, Russia Sanctions Waived, Making ‘GTA VI’

DAVID: COMING UP, ANOTHER CRACK IN THE RELATIONSHIP WITH KYIV. CHRISTINA: MORE WORRIES OVER RISING AI SPEND AND THAT. >> ALL OF THIS IS GOING TO PASS AND THE REASON FOR THAT IS SIMPLE. IT WILL NOT CHANGE THE FUNDAMENTALS. DAVID: CRIME PAYS IN THE WORLD OF GRAND THEFT AUTO AND MILLIONS OF PEOPLE ARE EXPECTING TO PAY FOR THE LATEST VERSION OF THE GAME. >> ESTIMATE THAT IT WILL SELL SOMETHING LIKE 40 MILLION COPIES IN ITS FIRST FEW MONTHS ON SALE AND THAT WOULD GENERATE OR THAN $3 BILLION IN REVENUE. DAVID: BLOOMBERG IS IN THE MAKING OF GTA 6, EXPECTED TO BE THE BIGGEST BLOCKBUSTER OF ALL TIME. CHRISTINA: [INDISCERNIBLE] THAT BASE JUMPING WE JUST SAW? DAVID: ON THE COMPUTER, NOT IN REAL LIFE. CHRISTINA: ALL RIGHT, FINE. WE ARE BASE JUMPING-FREE THIS MORNING FOR COMING TO YOU FROM NEW YORK. DAVID: ON SATURDAY, OCTOBER 17, WELCOME TO OUR LISTENERS AND VIEWERS ACROSS OUR PLATFORMS. THE BIG NEWS THIS MORNING AS THE PRESIDENT WAVING SANCTIONS SCHEDULED TO GO INTO EFFECT ON THE 18TH OF OCTOBER. THIS IS PART OF THE LINDSEY GRAHAM BILL. THESE ARE GOING TO BE EXTENSIVE SANCTIONS ON RUSSIAN ENERGY EXPORTS. CHRISTINA: WE ARE GOING TO DRILL DOWN INTO THE MECHANICS OF THIS BUT IT LOOKS LIKE THE LEGISLATION WILL GO INTO PLACE BUT THE SANCTIONS WILL BE WAIVED, SO THE PRESIDENT COULD TURN THEM BACK ON. IT IS THAT SOMETHING HE WOULD WANT TO DO GIVEN WHERE HE IS TRYING TO GET DIESEL FROM? DAVID: LET'S GET A CHECK OF THE HEADLINES WITH LISA MATEO. LISA: WE ARE LEARNING MORE DETAILS ABOUT THE GUNMAN WHO KILLED TREAT -- KILLED THREE CHILDREN AND A TEACHER AT SILVA RAIL ELEMENTARY SCHOOL IN END, OREGON. THE SHOOTER WAS A 16-YEAR-OLD FORMER SPECIAL NEEDS STUDENT AT THE SCHOOL. POLICE SAY HE JUMPED A FENCE WITH A SHOTGUN AND A BACKPACK FULL OF AMMUNITION. THE SHOOTER BLASTED HIS WAY THROUGH THE SCHOOL'S LOCKED DOORS, THEN OPENED FIRE IN A SPECIAL EDUCATION CLASSROOM. POLICE CHIEF MIKE KRANTZ DESCRIBE WHAT HAPPENED NEXT. >> THE TEACHER IN THE CLASSROOM THROUGH HER CELL PHONE AT THE SUSPECT AND TACKLED HIM AND FOUGHT TO TAKE THE FIREARM FROM HIM. SHE WAS NOT INJURED IN THAT INCIDENT, BUT SHE MOST CERTAINLY HELPED PREVENT MORE BLOODSHED. LISA: IT. WHO SAW WHAT WAS HAPPENING FOLLOWED THE GUNMAN INSIDE AND SHOT HIM MULTIPLE TIMES. STILL NO WORD ON A MOTIVE. LAST NIGHT A CANDLELIGHT VIGIL WAS HELD BY AN ACTIVIST GROUP TO HELP THE COMMUNITY MORE THE LOSSES. ORGANIZERS SAY THE INTENTION WAS TO BRING A GRIEVING COMMUNITY TOGETHER AND OFFER HOPE. >> FOR THE COMMUNITY TO HAVE AN INCLUSIVE SPACE WHERE THEY COULD FIND COMMUNITY AND MOURN TOGETHER. AND GETTING THROUGH THIS TOGETHER. LISA: AFTER LESS THAN A WEEK AFTER WHITE HOUSE PRESS SECRETARY KATIE ZACHARIA IS LEAVING THE POSITION. IT IS UNCLEAR IF SHE WOULD TAKE ON ANOTHER ROLE IN THE ADMINISTRATION. THE NEWS COMES AFTER ZACHARIA'S FIRST PRESS BRIEFING WAS CRITICIZED WHEN SHE FACED A NUMBER OF QUESTIONS ABOUT WHETHER SHE MISREPRESENTED HERSELF AS A LAWYER MY DESPITE NOT PASSING A BAR EXAM. BEFORE BOARDING MARINE ONE FOR A TRIP TO GEORGIA PRESIDENT TRUMP TOLD REPORTERS HE ENCOURAGED ZACHARIA TO RECONSIDER HER POSITION. PRES. TRUMP: I SAID, KATIE, DO YOU NEED THIS? I DON'T THINK YOU NEED THIS. AND WE ARE TALKING ABOUT DOING SOMETHING. WE LIKE KATIE A LOT. I THINK SHE JUST IS TREATED REALLY UNFAIRLY. LISA: WHEN ASKED IF HE WOULD FORCE HER OUT OF THE ROLE, THE PRESIDENT SAID HE WAS THINKING ABOUT DOING SOMETHING AND WOULD LET HER MAKE THAT DECISION HERSELF. DAVID: RAPIDLY MOVING DEVELOPMENTS THERE. 711. I DID THE MATH. CHRISTINA: OF COURSE YOU DID. THANK YOU, LISA. DAVID: PRESIDENT TRUMP WAIVED THOSE SANCTIONS RELATED TO ENERGY EXPORTS EXPECTED TO TAKE EFFECT IN A FEW DAYS. THE SANCTIONS WERE MEANT TO TARGET RUSSIAN OFFICIALS AND OLIGARCHS AND WERE PART OF THE LAW THE PRESIDENT SIGNED LAST MONTH. CHRISTINA: THIS MOVE IS ON TOP OF PRESIDENT TRUMP [INDISCERNIBLE] TO WORK WITH VLADIMIR PUTIN TO RELEASE SOME OF HIS COUNTRY'S DIESEL SUPPLY. JOINING US NOW IS BLOOMBERG NEWS RUSSIA EDITOR ANTHONY HALPIN AND BLOOMBERG NEWS WHITE HOUSE JEFF MASON. ANTHONY, I WANT TO START WITH YOU. ACCORDING TO OUR VERY GOOD COLLEAGUES, THE DIRECTIVE DOES FORMALLY IMPOSE THE TARIFFS, BUT THE WAIVER, HE SUSPENDED THE IMPLEMENTATION. THE MEASURE ORIGINALLY GAVE THE U.S. PRESIDENT 30 DAYS TO IMPOSE 100% TARIFFS ON GOODS FROM THE TOP FIVE BUYERS OF RUSSIAN CRUDE. MY QUESTION FOR YOU IS, DO WE KNOW IF THIS DIESEL DEAL GOES THROUGH, BUT THAT MAKE THE U.S. ONE OF THE TOP FIVE BUYERS OF YOU -- OF RUSSIAN ENERGY? ANTHONY: NOT SPECIFICALLY THE U.S., NO. RUSSIA ACCOUNTS FOR ABOUT 10% OF GLOBAL SEABORNE DIESEL BEFORE THE WAR AND IT WILL RESTORE ITS POSITION IN THAT MARKET AS A RESULT OF TRUMP'S WAIVER. BUT FROM THE KREMLIN' AS POINT OF VIEW WHILE THERE IS NO BENEFIT TO THE STATE BUDGET COMPANIES WILL SELL THE DIESEL, THEIR TAXES WILL BE PAID TO THE STATE BUDGET EVENTUALLY AND RUSSIA WILL GET THE BENEFIT. WHAT IT PROVIDES FOR THE KREMLIN IS HOPE THAT FURTHER SANCTIONS RELIEF DOWN THE LINE, BECAUSE CLEARLY THE DIESEL DEAL COULD OPEN THE WAY TO MANY OTHER AGREEMENTS BETWEEN RUSSIA AND THE U.S. I THINK THE KREMLIN TODAY WILL TAKE THE SIGNAL FROM PRESIDENT'S DECISION LAST NIGHT TO WAIVE THESE NEW SANCTIONS AS PERHAPS AN OPPORTUNITY TO EXPLORE THOSE AREAS. I THINK THEY ARE QUITE OPTIMISTIC IN THAT REGARD. DAVID: LET ME ASK YOU HOW MUCH HAS CHANGED OVER THE COURSE OF THESE LAST TWO WEEKS WHEN IT COMES TO THE RELATIONSHIP BETWEEN THE U.S. AND RUSSIA, ALSO THE U.S.'S RELATIONSHIP WITH UKRAINE HERE. THERE IS A LOT OF OPTIMISM YOU SEE FROM RUSSIAN OFFICIALS ABOUT THIS DEAL, BUT OTHER DEALS THE PRESIDENT HAS ANNOUNCED OVER THE LAST FEW DAYS. ANTHONY: YES, THAT'S RIGHT. CONVERSELY, UKRAINE IS ENORMOUS DISMAY OVER WHAT THEY SEE AS PRESIDENT TRUMP EFFECTIVELY SIDING WITH THE RUSSIANS, SIDING WITH PRESIDENT PUTIN, WHO IS THE AGGRESSOR IN THIS WAR. THE ARGUMENT OF THE LINDSEY GRAHAM BILL AND, IN FACT, UKRAINE AND ITS EUROPEAN ALLIES HAS BEEN CONSISTENTLY THAT THE ONLY WAY TO BRING PUTIN TO THE TABLE IS INCREASED PRESSURE UPON HIM, BUT THE WHITE HOUSE POSITION APPEARS TO BE THAT BY RELAXING PRESSURE ON PUTIN THEY MAY SOMEHOW TEMPT HIM INTO AGREEING TO COME TO THE TABLE, BUT THERE IS NO SIGN OF THAT AT ALL. THERE IS A GREAT DEAL OF UNHAPPINESS IN EUROPE AND UKRAINE ABOUT WHAT IS GOING ON AND THERE IS NOT MUCH EVIDENCE THAT THE U.S. POLICY IS WORKING AND CHANGING PUTIN'S POSITION. CHRISTINA: BUT LED THE WHITE HOUSE TO THIS DECISION AND IS THIS A SIGNAL OF WORSENING RELATIONS WITH UKRAINE? I HAVE SOME SOUND I WANT TO PLAY OR FROM PRESIDENT ZELENSKYY WHEN HE WAS ASKED BY A COLLEAGUE, A FELLOW JOURNALIST, IF HE IS BEING SCAPEGOATED FOR THE PRESIDENT'S ENERGY NEEDS AHEAD OF THE MIDTERMS. >> DO YOU THINK YOU ARE BEING TREATED AS A SCAPEGOAT FOR HIS OWN PROBLEMS? [LAUGHTER] PRES. ZELENSKYY: THIS IS MY ANSWER. CHRISTINA: THAT WAS THE EXTENT OF PRESIDENT ZELENSKYY'S PAUSE AFTER WHICH HE TAKES OFF HIS HEADSET AND SAYS, IT WAS MY ANSWER. JEFF, WHAT IS YOUR TAKE ON THIS? JEFF: I THINK THE FACT HE GAVE THAT SMILE AND ALSO THAT WAS THE QUESTION THAT WAS ASKED IS A GOOD REFLECTION OF WHAT IS GOING TO THE WHITE HOUSE'S HEAD, AS IT WERE, AND PRESIDENT TRUMP'S HEAD. THIS IS A FEW WEEKS BEFORE THE MIDTERM ELECTIONS, WHICH I DON'T NEED TO TELL YOU, OUR LISTENERS AND VIEWERS, AND PRESIDENT IS UNDERWATER. THAT IS THE REASON WHY HE IS DOING A WHOLE BUNCH OF CAMPAIGN STOPS RIGHT NOW, FLYING AROUND THE COUNTRY INTO PRIMARILY RED STATES TO SHORE UP REPUBLICANS. ONE OF THE THINGS THAT HAS PUT HIM UNDER WATER THE PRICE OF DIESEL. SO, THAT IS THE REASONING BEHIND HIS DEAL WITH RUSSIA, AND NOW I THINK IT IS VERY FAIR TO CONCLUDE THAT IS THE PRIMARY REASON BEHIND HIS DECISION TO WAIVE THESE SANCTIONS. SO, I DON'T KNOW IF SCAPEGOAT IS THE RIGHT WORD OR NOT, BUT CERTAINLY UKRAINE IS SUFFERING AS A RESULT, AND I THINK IT IS WORTH REMINDING US ALL THAT THE START OF THE PRESIDENT'S TERM HE HAD THAT VERY GERMANIC MEETING WITH PRESIDENT ZELENSKYY IN THE OVAL OFFICE IN WHICH HE AND VICE PRESIDENT VANCE WERE DEEPLY CRITICAL OF THE UKRAINIAN PRESIDENT. THE RELATIONSHIP HAS GONE UP AND DOWN SINCE THEN. IT WAS CERTAINLY IN A BETTER PLACE WHEN THE PRESIDENT REALIZED AT THAT PRESIDENT PUTIN WAS NOT GIVING HIM WHAT HE WANTED. ANOTHER REMINDER. PRESIDENT TRUMP SAID HE THOUGHT HE COULD END THE CONFLICT BETWEEN THOSE TWO COUNTRIES IN ONE DAY WHEN HE GOT INTO OFFICE. THAT IS OBVIOUSLY NOT PROVEN TO BE THE CASE. RIGHT NOW HE CONTINUES TO SAY THAT LEADERS WANT TO END THE CONFLICT, BUT AGAIN, IS NUMBER ONE CONCERN RIGHT NOW IS DOMESTIC, AND THAT IS TRYING TO MAINTAIN REPUBLICAN CONTROL OF CONGRESS, AND ONE OF THE WAYS HE IS DOING THAT IS BY TRYING TO DIESEL PRICES, WITH RUSSIA'S HELP. DAVID: I WANT TO DIG INTO THE WAY EUROPE HAS REACTED TO THIS AND WE SAW THAT IN STARK RELIEF AT THE SUMMIT THAT TOOK LACE AT THE LATTER PART OF THIS WEEK. AS THEY WATCH THE U.S. TAKING THIS DIFFERENT ATTACK HERE, WHAT MORE ARE THEY PREPARED TO DO? WHAT WAS THE RHETORIC, THE COMMITMENT COMING OUT OF THAT SUMMIT THAT TOOK PLACE? ANTHONY: THERE WAS RATHER A LOT OF RHETORIC ABOUT EUROPE SHOWING SOLIDARITY WITH UKRAINE AND INCREASING THEIR SUPPORT, PARTICULARLY FOR AIR DEFENSES FOR KYIV. GIVE HAS LONG SAID IT IS VULNERABLE BECAUSE IT'S DEFENSES ARE DEPLETED. WE SAW OVERNIGHT DRONE ATTACKS ON UKRAINE. BUT BEYOND THAT THERE ARE SOME THINGS THEY SIMPLY CAN'T DO. UKRAINE IS VERY RELIANT ON U.S. INTELLIGENCE, FOR EXAMPLE. PARTICULARLY THE STORES SHIELD NETWORK, SPACEX. THAT IS NOT SOMETHING EUROPE COULD EASILY REPLICATE IF THE U.S. DECIDED TO PULL THE PLUG ON THAT. UKRAINE ALSO RELIES QUITE HEAVILY ON U.S. WEAPONRY. EUROPEAN NATIONS ARE PAYING FOR THAT WEAPONRY, BUT IT COMES FROM THE U.S. AND UKRAINE DEARLY NEEDS IT. SO, EUROPE IS TRYING TO STEP UP. THIS TRYING TO FILL IN THE GAP BUT THERE IS A LOT OF DISMAY IN EUROPEAN CAPITALS ABOUT THE TURN THAT TRUMP HAS TAKEN AND WHAT THAT MAY MEAN FOR FUTURE SUPPORT FOR THE UKRAINE IN THE WAR WITH RUSSIA. IT IS NOW IN ITS FIFTH YEAR. CHRISTINA: EUROPEAN LEADERS ARE SCRAMBLING TO COME UP WITH AN ALTERNATIVE FOR SOME OF THIS INTEL AND CAPACITY, INCLUDING STARS SHIELD, STARLINK. ESPECIALLY IN LIGHT OF WHAT HAPPENED THIS WEEK, THAT SYSTEM APPEARS TO HAVE BEEN THROTTLED. THE PRESIDENT WAS ASKED ABOUT THAT. HERE IS WHAT HE HAD TO SAY. [INAUDIBLE] CHRISTINA: THAT AUDIO IS HARD TO HEAR, SO LET ME RECAP IT FOR YOU. THE PRESIDENT JUST SAID, WE DIDN'T DO THAT AT ALL. I DON'T THINK IT WAS A SLOWDOWN. WE DIDN'T SLOW IT DOWN AT ALL, FUNCTIONING PROPERLY FROM WHAT I UNDERSTAND. JEFF, WHAT ARE YOU HEARING FROM INSIDE THE WHITE HOUSE AND WHAT HAS YOUR REPORTING TOLD YOU? JEFF: BUT HE IS SAYING IS MIRRORED BY WHAT WHITE HOUSE OFFICIALS HAVE SAID, WHICH IS BASICALLY HANDS UP AND SAYING, WE ARE NOT RESPONSIBLE FOR THIS. THAT HAS LED TO SPECULATION ABOUT WHO COULD BE RESPONSIBLE. SOMEONE ELSE IN THE GOVERNMENT? ELON MUSK HAS SAID THAT IS A DECISION THAT WOULD BE MADE BY THE U.S. GOVERNMENT AND NOT BY HIM AND NOT BY HIS COMPANY. SO, LOTS OF MYSTERY AROUND THAT, AND I DON'T HAVE THE ANSWER ANYMORE THEN IT SEEMS LIKE ZELENSKYY DOESN'T HAVE THE ANSWER. IT DOES SEEM LIKE IT CAME BACK ONLINE, BUT WHAT I DO HAVE IS CONTEXT. THE CONTEXT IS, THIS HAPPENED DURING A WEEK WHERE THE PRESIDENT'S RELATIONSHIP WITH ZELENSKYY HAS SOURED. B, HE IS FOCUSED ON DIESEL. AND, C, HE IS MORE INTERESTED IN IMPROVING THE RELATIONSHIP WITH RUSSIA THAN HE IS UKRAINE. THAT IS THE CONTEXT IN WHICH THE STARLINK CONNECTION WAS SEVERED, OR AT LEAST SLOWED. THAT IS ANOTHER REASON WHY THESE QUESTIONS ARE BEING ASKED. DAVID: WANT TO ASK YOU ABOUT ANOTHER STORY WE HAVE BEEN TRACKING OVER THE COURSE OF THE LAST 24 HOURS. THE PRESIDENT'S DECISION TO GIVE HIS FORMER PRESS SECRETARY AN UNTREATED TO LEAVE THAT POSITION. WHAT DOES THAT SAY ABOUT THE WHITE HOUSE APPARATUS TWO WEEKS OUT FROM MIDTERM ELECTIONS AND WHAT INFORMATION DO WE HAVE ABOUT WHAT LED TO THAT DECISION ON THE PRESIDENT'S PART? JEFF: IT IS A LITTLE BIT OF A HARKENING BACK TO THE FIRST TERM WHEN THERE WAS MORE INVITING AND OPEN INFIGHTING AMONGST PRESIDENT TRUMP'S TEAM. ALSO WHEN THERE WERE MORE FIRINGS AND THE STAFF TURNOVER WAS MUCH MORE RAPID. THAT HAS NOT BEEN A HALLMARK OF HIS SECOND TERM, LARGELY BECAUSE OF THE RELATIVELY IRON GRIP CHIEF OF STAFF SUSIE WILES HAS HAD OVER THIS WHITE HOUSE AND OVER THAT TEAM. SHE APPARENTLY WAS NOT HEAVILY INVOLVED, IF AT ALL INVOLVED, IN THE HIRING OF KATIE ZACHARIA, AND TO YOUR QUESTION, DAVID, WHY? SHE DIDN'T DO GREAT IN THIS FIRST WEEK ON THE JOB. HER FIRST AND ONLY PRESS BRIEFING WAS WIDELY PANNED, AND SHE DIDN'T, THEN, REALLY MAKE UP FOR IT IN SOME OF HER INTERVIEWS WITH FRIENDLY CONSERVATIVE, RIGHT-LEANING HOSTS, INCLUDING SEAN HANNITY ON FOX NEWS. THAT SEEMS TO HAVE LED THE PRESIDENT TO DETERMINE SHE WASN'T IN THE RIGHT POSITION, BUT IT ALSO LAID BEAR THE FACT THAT THERE WERE DISPUTES ABOUT HER HIRING IN THE FIRST PLACE WITHIN THE TOP REST OF THE WHITE HOUSE. DAVID: THIS HAPPENING BEFORE THESE ELECTIONS IN TWO WEEKS BUT POSSIBLY -- IN TWO WEEKS POP HISTORY -- IN TWO WEEKS' TIME. RUSSIA AND UKRAINE. VESELY THE PROSPECT HERE IN THE UNITED STATES IS, WHERE THERE TO BE A CHANGE IN CONTROL OF CONGRESS WE COULD SEE INVESTIGATIONS, PUSH BACK ON THE PRESIDENT WHEN IT COMES TO FOREIGN POLICY. HOW CLOSELY WATCHED IS THIS CAMPAIGN BY RUSSIA AND UKRAINE AT THIS POINT? ANTHONY: FROM A RUSSIAN PERSPECTIVE THE CRIP -- THE KREMLIN IS WATCHING CLOSELY. TRUMP MAY EMERGE WEEKEND IF HE LOSES MOVE -- LOSES REPUBLICAN MAJORITY. THEREFORE, IT WILL BE DIFFICULT FOR HIM TO PRESSURE UKRAINE. AT THE SAME TIME THEY THINK THAT MAY OFFER THEM AN OPPORTUNITY TO GET CLOSER TO TRUMP BECAUSE THEY WILL TRY TO APPEAR AS THE MORE REASONABLE PARTY, LOOKING TO DO AGREEMENTS WITH TRUMP AND THE U.S. AND CAST UKRAINE AS IF SOMEHOW THE UNRELIABLE AND UNREASONABLE PARTY IN THIS WAR. ONE OF THE INTERESTING THINGS, THOUGH, COMING BACK TO THE DIESEL DEAL, RUSSIAN OFFICIALS SAY IT WILL TAKE TWO OR THREE WEEKS TO REACH THE U.S., SO FROM THEIR PERSPECTIVE IT IS NOT CLEAR THAT THIS WILL HELP THE TRUMP. BUT AT THE SAME TIME FROM THEIR PERSPECTIVE THEY ARE HAPPILY TAKING IT. CHRISTINA: THAT IS SO FUNNY. THAT IS WHAT I WAS GOING TO ASK YOU. THE TIMELINE FOR THIS DOESN'T SEEM LIKE, EVEN IF IT GETS HERE BY THE MIDTERMS, MAKE A DIFFERENCE FOR THE MIDTERMS. I APOLOGIZE, WE ARE SHORT ON TIME. JUST TO SHOW THAT PRESIDENT TRUMP IS DOING SOMETHING BEFORE VOTERS HEAD TO THE POLLS? JEFF: HE WANTS TO BRING DOWN THOSE PRICES AND WOULD HOPE -- AND HOPED THIS WOULD WORK. IT RAISES A BROADER QUESTION YOU GUYS ARE HITTING AT, WHICH IS, WHAT HAPPENS AFTER THE MIDTERMS? IF HE DOES LOSE MAJORITIES IN ONE OR BOTH HOUSES DOES THAT LEAD TO ANOTHER POLICY SHIFT IN ANY WAY WITH REGARD TO RUSSIA, WITH REGARD TO UKRAINE, WITH REGARD TO IRAN? HE HAS BEEN FORECASTING THAT A LOT OF THINGS ARE GOING TO HAPPEN AFTER THE WAR. THAT PRICES ARE GOING TO COME DOWN -- AFTER THE MIDTERMS, I SHOULD SAY. THAT THE WAR IN IRAN IS GOING TO END. BUT THERE IS NOTHING TO BACK THAT UP. I THINK IT RAISES MORE QUESTIONS THAN IT ANSWERS AND THAT IS WHY THAT ELECTION DAY IS SO IMPORTANT ON MULTIPLE LEVELS. DAVID: GREAT TO TALK TO YOU, AS ALWAYS. THANKS TO TONY HALPIN AS WELL. OUR COVERAGE OF RUSSIA, UKRAINE. CHRISTINA: SHOW DEBUT. DAVID: COMING UP, KEVIN WARSH ON THE WORLD STAGE IN BANGKOK. AN IMF CONFERENCE THERE, BUT OFFERING FEW CLUES AS TO THE FED'S NEXT MOVE. WE ARE GOING TO TALK ABOUT WHAT IS NEXT FOR THE FED WITH KATE DAVIDSON. IT IS A HEAD ON BLOOMBERG TELEVISION, BLOOMBERG.COM, AND THE BLOOMBERG BUSINESS APP. STAY WITH US. ♪ LISA: THANK YOU FOR JOINING US LIVE ON BLOOMBERG "THIS WEEKEND." MN'S -- YEMEN'S HOUTHIS STRUCK THE AIRPORT. ACCORDING TO THE STATE-RUN NEWS AGENCY TWO MISSILES FELL WITHIN THE BOUNDARIES OF HAYDEN AIRPORT AND NO ONE WAS KILLED. EVACUATIONS ARE UNDERWAY FOR THOUSANDS OF RESIDENTS IN SOUTHERN CALIFORNIA FROM A NUMBER OF WILDFIRES. SEVERAL HOMES HAVE BEEN BURNED IN SAN JUAN CAPISTRANO AND ORANGE COUNTY. THE FIRE STARTED IN SAN CLEMENTE. NO WORD ON HOW THAT BEGAN. HURRICANE TRUDY CONTINUES TO MOVE TOWARD SOUTHWESTERN AREAS OF MEXICO'S PACIFIC COAST. THE NATIONAL HURRICANE CENTER SAYS THE CATEGORY ONE STORM HAS MAXIMUM SUSTAINED WINDS OF 90 MILES AN HOUR. SEAN COMBS HAS MOVED TO A NEW PRISON. THE ASSOCIATED PRESS SAYS IT COMES AFTER REPORTS OF HIS LUXURY LIFESTYLE BEHIND BARS AND AFTER HE WAS INJURED IN A FIGHT IN NEW JERSEY. HE WILL BE MOVED TO A LOAF SECURITY FACILITY IN PENNSYLVANIA. SUMMA BLAIR'S REPRESENTATIVES SAY THE ACTRESS DID NOT INTEND TO HARM ANYONE DURING A FLIGHT. BLAIR, WHO HAS MULTIPLE SCHOOL HORSES, EXPERIENCED A MEDICAL EMERGENCY. SHE WAS ACCUSED OF INJURING TWO FLIGHT ATTENDANTS, THEY ARE KICKING A POLICE OFFICER AND NURSE. REPRESENTATIVES SAY BLAIR'S CONDITION AND CAUSE EPISODES THAT MAY BE MISUNDERSTOOD. SHE PLEADED NOT GUILTY TO ASSAULT CHARGES AND IS FREE ON BAIL. DAVID: THE OTHER FLIGHT ATTENDANT? CHRISTINA: THEY CALLED AHEAD AND ASK FOR TREATMENT FOR BITE MARK. WE ARE WAITING FOR THE DETAILS. A TOUGH SITUATION. THANKS, LISA. THE FEDERAL RESERVE IS IN A BLACKOUT PERIOD. WE WILL NOT HEAR AP FROM POLICYMAKERS UNTIL THE NEXT FOMC MEETING ON OCTOBER 28. RIGHT NOW MARKETS EXPECT THEY WILL KEEP INTEREST RATES WHERE THEY ARE. DAVID: FED CHAIR KEVIN WARSH GOT THE LAST WORD AT A CONFERENCE IN THAILAND, WHERE HE PARTICIPATED IN A Q&A AT THE IMF'S DIRECTOR. WARSH, WHO HAS COME OUT AGAINST FORWARD GUIDANCE, DID NOT SAY A LOT. CHAIR WARSH: WHAT ARE WE SEEING? BROADLY OVER THE MONTH OR SO THAT HAS TRANSPIRED SINCE THEN WORLD HAS BROADLY CONFORMED TO OUR EXPECTATIONS. WE WILL BE MEETING A COUPLE MORE TIMES THIS YEAR, AND THAT WILL BE THE CRYSTALLIZING MOMENT. BUT RIGHT NOW WE HAVE STRUCTURAL GROWTH. WE HAVE AN INVESTMENT SURGE. IT IS NOT HITTING EVERY COUNTRY, BUT IN THE UNITED STATES WE ARE HAVING A MASSIVE INVESTMENT SURGE. DAVID: KATE DAVIDSON HEADS UP BLOOMBERG COVERAGE OF THE FED. KATE: HE CERTAINLY DIDN'T HAVE A LOT TO SAY ABOUT THE FED'S FORTHCOMING POLICY MEETING AT THE END OF OCTOBER, AND THAT IS WHY ALL EYES ARE ON THIS PARTICULAR EVENT. WE HAD GOTTEN SOME PRETTY STRONG SIGNALS FROM SOME OF HIS COLLEAGUES IN THE WEEKS OR DAYS LEADING UP TO THESE REMARKS THAT THE FED IS GOING TO HOLD, RIGHT? THEY ARE NOT INCLINED TO RAISE INTEREST RATES. THEY DON'T FEEL THE NEED TO RAISE THEM DAYS BEFORE THE MIDTERMS AND I THINK INVESTORS WERE HOPING KEVIN WARSH WOULD GIVE A SIGNAL ONE WAY OR THE OTHER. HE BASICALLY STUCK WITH HIS INCLINATION TO NOT GIVE ANY FORWARD GUIDANCE, ANY SENSE OF WHERE POLICY IS HEADED. EVERY MEETING IS A LIVE MEETING, HE DOESN'T WANT TO PREJUDGE. I GUESS THE SIGNAL, THEN, YOU COULD TAKE AND INVESTORS TOOK, IS THERE IS NOT A RATE HIKE LIKELY COMING. CHRISTINA:CHRISTINA: DO YOU THINK THAT CARRIES THROUGH THE END OF THE YEAR OR IS IT TOO SOON TO TELL? KATE: I THINK IT IS PROBABLY TOO SOON TO TELL. FRANKLY, SOME FED-WATCHERS WERE SURPRISED WE HEARD SUCH A STRONG SIGNAL FROM SOME OF THE OTHER POLICYMAKERS, EVEN BEFORE WE GOT NEW INFLATION DATA THIS WEEK THAT THEY DIDN'T HAVE TO RAISE RATES. THERE COULD BE SOME QUESTIONS FOR KEVIN WARSH AT HIS NEXT PRESS CONFERENCE, GIVEN HOW HOT INFLATION HAS COME IN ON THESE RECENT REPORTS. IF YOU LOOK AT CONSUMER PRICES AND PRODUCER PRICES, WHY ISN'T THE FED RAISING RATES THIS MONTH? WE HAVE HEARD OTHER FED OFFICIALS LIKE JOHN WILLIAMS, HE HAS SAID HE THINKS IT WOULD LIKELY BE APPROPRIATE TO RAISE RATES ONE MORE TIME BEFORE THE END OF THE YEAR. THE FED HAS ONE MORE MEETING AFTER THE OCTOBER MEETING IN DECEMBER, SO THAT IS A POSSIBILITY. DAVID: WE ARE GETTING A BETTER SENSE OF WHAT A WARSH FEDERAL RESERVE IS GOING TO BE LIKE. LET ME PLAY A TAPE HERE ABOUT HOW HE SEES THE FEDERAL RESERVE IN 2026. CHAIR WARSH: AT THE FEDERAL RESERVE WE MADE CLEAR WE WOULD DELIVER PRICE STABILITY AND WE REMOVED A DOSE OF ACCOMMODATION ABOUT A MONTH AGO. I DON'T PREJUDGE MEETINGS. I DON'T BELIEVE IN SAYING NOW WHAT I MIGHT DO AT THE MEETINGS WE HAVE IN THE BALANCE OF THIS YEAR. IT IS A NEW CHAPTER OF THE FED AND WE ARE NOT ON THAT BUSINESS ANYMORE. DAVID: I NOTICED HIM USING THE PRONOUN "WE." AS YOU HAVE HEARD FROM OTHER FED POLICYMAKERS IN RECENT DAYS, SUGGESTING THE PATH FORWARD THE FED MIGHT TAKE. HOW DO YOU THINK ABOUT THE WAY HE IS COMMUNICATING? HOW DO YOU THINK ABOUT THE WAY ALL OF THE POLICYMAKERS ARE COMMUNICATING ABOUT THE PATH FORWARD? KATE: IT IS SO INTERESTING, THIS IDEA OF CHANGE AND HOW HE WANTS TO RESHAPE THE INSTITUTION, BUT, FIRST OF ALL, THERE IS A BOARD OF GOVERNORS, THEN YOU HAVE THIS BROADER GROUP OF OFFICIALS ALL AROUND THE COUNTRY, THE 12 REGIONAL FED PRESIDENTS, AND HE CAN'T REALLY TELL THEM WHAT TO DO, TO BE PERFECTLY FRANK. THEY ARE GOING TO GO OUT THERE AND TALK ABOUT THEIR VIEWS OF THE ECONOMY. THEY ARE GOING TO TALK ABOUT WHAT THEY THINK MIGHT BE APPROPRIATE IF THE ECONOMY EVOLVES IN A CERTAIN WAY. THAT IS SOMETHING FED OFFICIALS HAVE DONE. IS THAT APPROPRIATE? IS THAT FORWARD GUIDANCE? IS THAT SPOON FEEDING THE MARKETS? HE SEEMS TO SEE IT THAT WAY AND I THINK HE WOULD CERTAINLY LIKE THEM TO PULL BACK. WE SAW A LOWELL OVER THE SUMMER WHEN -- LULL OVER THE SUMMER WHEN WARSH HAD COME IN, BUT THERE WERE A LOT OF WORDS FROM OFFICIALS AFTER THIS SEPTEMBER MEETING. THE TASK OF REDUCING FED SPEAK, AS WE CALL IT, WARSH HAS HIS WORK CUT OUT FOR HIM. CHRISTINA: THERE WAS THIS BIG CHANGE HE ANNOUNCED. LESS FORWARD GUIDANCE FROM THE INSTITUTION AND AS WE HEARD HIM SPEAK, HE'S GOING TO TALK LESS ABOUT IT. WE TALKED ABOUT WHO WOULD BE FILLING THAT VOID AND IT SEEMS TO BE EXACTLY WHAT YOU ARE SAYING, THESE FED OFFICIALS, THESE GOVERNORS, WE ARE HEARING FROM THEM MORE. IS IT THAT WE ARE HEARING FROM THEM MORE OR WHEN THEY SPEAK IT IS MAKING MORE IMPACT BECAUSE THERE IS LESS GUIDANCE COMING FROM THAT TOP GUY? KATE: THAT IS AN INTERESTING QUESTION. WE HAVE HEARD MORE OVER THE LAST FEW WEEKS AND WE HEARD SOME PRETTY DIRECT MESSAGING FROM THEM. I THINK A QUESTION IS, IS THERE MESSAGING ALIGNED WITH HIS VIEW? TYPICALLY THE NEW YORK FED PRESIDENT IS SEEN AS AN IMPORTANT ALLY AND ALMOST -- NOT A SPOKESPERSON, BUT SOMEONE WHO CAN HELP AMPLIFIED THE FED CHAIR'S MESSAGE. SIMILARLY WITH THE VICE CHAIR OF THE FED BOARD. IT IS NOT CLEAR THAT THOSE OFFICIALS HAVE THAT SAME RELATIONSHIP WITH WARSH. IT IS NOT CLEAR HE WILL HAVE PEOPLE WHO CAN BE VIEWED AS RELIABLY SPEAKING ON HIS BEHALF. THAT IS SOMETHING WE WILL HAVE TO KEEP WATCHING AND A BIG QUESTION PEOPLE HAVE IS, WHO ARE THE PEOPLE WHO MARKETS WILL LOOK TO OR CAN LOOK TO AS RELIABLE, SORT OF SIGNALER'S, IF YOU WILL, FOR THE FOMC? DAVID: WE'VE TALKED A LOT ABOUT POLITICS IN THE FED. HERE WE ARE TWO WEEKS AWAY FROM THE MIDTERM ELECTIONS. THIS NEXT FED MEETING IS GOING TO TAKE PLACE BEFORE THE ELECTION. WHAT IS YOUR SENSE OF HOW MUCH THAT IS COLORING POLICYMAKERS' THOUGHTS ABOUT THIS NEXT MEETING, IF AT ALL? IT SEEMS LIKE THE GUIDANCE IS TO STAY PUT AT THIS NEXT MEETING. NEXT MEETING. IS THERE IN PUBLIC RECOGNITION THAT AN INCREASE, NOT GOING TO SEE A REDUCTION, BUT THAT MIGHT BE A POLITICAL PRINCIPLE? KATE: I MEAN, THIS IS A QUESTION THAT HAS EVERY COUPLE OF YEARS, AND USUALLY BEFORE PRESIDENTIAL ELECTIONS THAN MIDTERM ONES, BUT THESE PEOPLE ARE HUMAN, RIGHT? THERE IS CERTAINLY AWARENESS AROUND THE POLITICAL PRESSURE AROUND THE FED, ESPECIALLY IN THIS ADMINISTRATION. BUT OVER AND OVER, EVERY TIME WE'VE WATCHED FED WATCHERS, FORMER FED OFFICIALS, ABOUT THE ROLE POLITICS PLAY IN THE DECISION-MAKING, THEY ARE ADAMANT IT JUST DOES NOT FACTOR INTO THE DISCUSSION, INTO THEIR THINKING, THAT THEY ARE LOOKING AT WHAT IS BEST FOR THE ECONOMY. AND THAT IS HOW THE FED WAS DESIGNED, FRANKLY, TO THINK ABOUT THE ECONOMY, NOT THINK ABOUT SHORT-TERM IMPLICATIONS BUT LONGER TERM, WHAT IS BEST FOR THE ECONOMY. THERE'S NOT MUCH EVIDENCE TO CONTRADICT THAT, EITHER, IF WE LOOK BACK AT PAST DECISIONS AROUND ELECTIONS. I THINK WE COULD ASSUME IT'S MAYBE IN THE BACK OF THEIR MINDS, BUT WE KNOW FROM TRANSCRIPTS OF PREVIOUS MEETINGS, IT'S NOT GOING TO COME UP IN THE DISCUSSION FOR SURE. LISA: WARSH DID SPEAK ABOUT AI AND SYSTEM. CHAIR WARSH: THE ADVENT OF THIS NEW TECHNOLOGY IS PROBABLY THE MOST CONSEQUENTIAL CHANGE TO THE U.S. AND THE GLOBAL ECONOMY AND MY LIFETIME. IT WILL FUNDAMENTALLY CHANGE THE CONDUCT OF MONETARY POLICY. IT'S OBVIOUSLY GETTING THE DEMAND SIDE OF THE ECONOMY BEFORE IT IS GOING TO GET THE SUPPLY SIDE. THERE REALLY IS, I THINK, A HUGE BENEFIT TO THE GLOBAL ECONOMY, THE U.S. ECONOMY COME OVER THE HORIZON. LISA: HE SOUNDS PRETTY BULLISH THERE. PEOPLE HAVE MIXED FEELINGS ON AI'S IMPACT, POTENTIALLY ON THE JOBS MARKET, THE LABOR MARKET, BUT ALSO ON THE FINANCIAL SYSTEMS, RIGHT? THE PACE OF TRADING, THE WAY PEOPLE ARE LOOKING AT DATA, ALL OF THAT. HOW DOES WHAT HE SAID FALL IN LINE WITH THE REST OF THE INDUSTRY AND WHERE THE FED'S RIGHT NOW? DO WE KNOW? KATE: I THINK THAT IS A REALLY GOOD QUESTION. WHAT WE'RE HEARING FROM OTHER OFFICIALS, THERE IS CERTAINLY A CONCERN ABOUT THE INFLATION IMPACTS HERE, RIGHT? AND SEEING BEST, OF COURSE, IS A BIG -- THIS, OF COURSE, IS A BIG SOURCE OF SUPPORT FOR THE ECONOMY, AND THAT IS A GOOD THING, BUT HOW ARE THOSE PRESSURES PERHAPS OVERHEATING OTHER SECTORS OF THE ECONOMY? IS THAT PRESSURE STARTING TO BLEED INTO OTHER CATEGORIES OF INFLATION? THAT IS THE THINGS THAT OFFICIALS ARE WORRIED ABOUT. WE HAVE NOT HEARD A LOT, THERE DOES NOT SEEM TO BE A CONSENSUS YET ON THIS ISSUE OR A QUESTION OF, WILL IT MAKE THE ECONOMY MORE PRODUCTIVE IN THE LONG TERM? THEY ARE KEEPING AND I ON THAT. BUT THEY DO SEEM TO BE INCREASINGLY WORRIED ABOUT THE NEAR TERM DEMAND PRESSURE, AGAIN, THAT THIS IS FUELING INFLATION, AND THEY MIGHT HAVE TO DO SOMETHING ABOUT IT IN THE FORM OF HIGHER RATES. DAVID: I WILL ASK YOU LASTLY, ONE OF THE FAMOUS TASK FORCES THAT FED CHAIR KEVIN WARSH HAS ANNOUNCED, DOES IT TEASE A FIRST SET OF PUBLIC MEETINGS OR A MEETING SURROUNDING ONE OF THESE TASKFORCES HAPPENING IN A FEW WEEKS' TIME, WHAT IS THE STATUS OF ALL BACK, THE CONVERSATIONS TAKING PLACE BY THE PANEL OF EXPERTS THE VENTURE HAS PUT TOGETHER? KATE: YEAH. THESE ARE CERTAINLY HIGHLY ANTICIPATED. THERE ARE HIGH CREDENTIALS FOR SOME OF THESE PANELS. THE QUESTION, WHAT IS THE TAKE AWAY, WHAT WILL BE RECOMMENDATIONS BE, IF ANYTHING? THIS IS A RELATIVELY SHORT TIMEFRAME FOR A PANEL TO TACKLE THESE QUESTIONS, SO SOME FOLKS HAVE WONDERED WHETHER THE CONCLUSIONS WILL BE FAIRLY SURFACE LEVEL. SO THAT IS WHAT WE WILL BE LOOKING FOR OVER THE COMING MONTHS. I THINK WE WILL EXPECT THAT THESE ANNOUNCEMENTS AND THESE SORT OF MEETINGS WILL BE UNVEILED THROUGH THE END OF THE YEAR AND NEXT YEAR. DAVID: THESE FIVE TASKFORCES THE FED CHAIR HAS SET UP, I WANT TO GO BACK TO THE NEEDS OF THE SPEECH OF THE CONVERSATION HE WAS HAVING WITH THE HEAD OF THE IMF, YOU KNOW, IT IS FASCINATING TO HEAR HIM TALK ABOUT AI. VERY BULLISH ON AI. THE WAY HE'S SPEAKING ABOUT THE MAN'S THAT'S GOING TO CAUSE CENTRAL BANKS TO REACT TO COME A , SUPER FASCINATING, AND THEN WE SEE HIM ENGAGED ON -- CHRISTINA: THAT'S WHAT I FIND INTERESTING, HE'S NOT SPEAKING, THEY ARE NOT GOING TO GO SILENT, RIGHT? OTHER PEOPLE ARE GOING TO FILL THAT VOID. THE SAME ARGUMENT PEOPLE MAKE WHEN THE U.S. PULLS OUT OF THESE ORGANIZATIONS, OK, IF YOU ARE NOT THERE, IF YOU ARE NOT GIVING FORWARD GUIDANCE, OTHER PEOPLE WILL GET IT FOR YOU. DAVID: VERY TRUE, AND THE NEW YORK SLED PRESIDENT AND OTHERS HAVE BEEN TALKING ABOUT THE PATH FORWARD. REALLY FASCINATED HOW THAT CONVERSATION WAS. A LITTLE LIGHT AT THE TOP. I THINK BECAUSE IT WAS AN OVERSEAS EVENT AND IT WAS SO CLOSE TO THIS BLACKOUT PERIOD, THERE WAS SPECULATION HE WOULD DO MORE THAN HE DID. BUT IT DID NOT HAPPEN. CHRISTINA: NOW TO SOMETHING COMPLETELY DIFFERENT, IF YOU ARE LOOKING FOR THANKSGIVING PLANS, MAYBE A TRIP TO VICE CITY IS IN ORDER. BLOOMBERG THIS WEEK. A NEW LOOK AT GRAND THEFT AUTO BEFORE IT'S DEBUT NEXT WEEK. WE WILL GET A LOOK COMING UP. ♪ CHRISTINA: THANK YOU FOR JOINING US LIVE ON "BLOOMBERG THIS WEEKEND." LISA: I'M LISA MATEO. POPE LEO'S DOCTORS SAY HE'S READY TO BE DISCHARGED FROM THE HOSPITAL TODAY. THEY SAY BLOOD TESTS, CHEST X-RAYS, AND HIS STATUS THIS MORNING SHOW HE'S DEEMED FIT TO LEAVE. THE FIRST AMERICAN POPE WAS ADMITTED TUESDAY FOR SURGERY WITH DR.'S PART OF HIS RIGHT LUNG -- DOCTORS REMOVING PART OF HIS RIGHT LUNG. COREWEAVE DROPPED THIS WEEK. CONSIDERED ONE OF THE RISKIEST STOCKS AND AI TRADE BECAUSE OF ITS RELIANCE ON HIGH-YIELD DEBT TO FINANCE ITS DATA CENTERS COULD ANALYSTS SAY THEY SAW EXPOSES A DIVIDE BETWEEN AI FEAR AND GREED. BUT NVIDIA'S JENSEN HUANG SAYS HE'S CONFIDENT IN THE COMPANY. YESTERDAY, THE CEO BRUSHED ASIDE CONCERNS ABOUT THE RECENT CHIP STOCK RALLY. JENSEN: WITH RESPECT TO THE NEWS, IT IS CHOPPY NEWS, AS YOU KNOW. IT HAPPENS ALL THE TIME. BUT IT WON'T CHANGE THE FUNDAMENTALS. LISA: ALONG WITH SPEAKING IN BERLIN WHILE PUSHING NVIDIA'S EFFORTS TO EXPAND NVIDIA'S INFRASTRUCTURE ACROSS EUROPE. AND ANTHROPIC ADDRESSING LAWMAKERS. A PLAN TO REGULATE ARTIFICIAL INTELLIGENCE SAFETY AND SECURITY. POLITICO SAYS THE GOVERNMENT COULD BLOCK THE RELEASE OF AN AI MODEL AS IT RISKS KILLING OR INJURING MORE THAN 50 PEOPLE OR CAUSING MORE THAN $1 BILLION IN DAMAGES. THE THREAT MUST BE A RESULT OF CREATING OR RELEASING A BIOLOGICAL WEAPON, AI GOING BEYOND HUMAN CONTROL, OR A CYBERATTACK. DAVID: THANK YOU VERY MUCH. APPRECIATE IT. IT'S EXPECTED TO BE THE BIGGEST VIDEO GAME LAUNCH EVER. AFTER MORE THAN A DECADE IN DEVELOPMENT AND SOME $2 BILLION INVESTED, THE SIXTH INSTALLMENT OF THE WILDLY POPULAR GRAND THEFT AUTO SERIES WILL BE OFFICIALLY RELEASED NOVEMBER 19. CHRISTINA: YOU HAVE NOT PLAYED THIS, HAVE YOU? DAVID: I HAVE COME A PREVIOUS ITERATION. CHRISTINA: I HAVEN'T. MY BROTHER HAS. WE GOT A BEHIND THE SCENES LOOK AT THE MAKING OF DTA 6 -- GTA IV. WE SPOKE ABOUT THE EXCITEMENT AND ANXIETY GETTING THIS GAME OVER THESE FINISH LINE. >> I THINK PEOPLE ARE PRETTY JAZZED OVER WHAT THEY SEEN SO FAR, BUT IT'S BEEN SINCE 2013. PRETTY WILD. TO BE FAIR, ROCKSTAR, BEHIND IT, THEY DID RELEASE A DIFFERENT GAME BETWEEN THOSE TWO, WHICH RED DEAD REDEMPTION 2 CAME OUT IN 2018. IT'S REALLY SINCE THEN THAT THEY'VE BEEN IN FULL PRODUCTION ON THIS GAME. LISA: YOU SAID THE COMPANY HAD TO REBUILD ITSELF. THAT STOOD OUT TO ME. WHAT DID YOU MEAN BY THAT? TALK ABOUT THE TRANSITION OF EVERYTHING THAT WAS GOING ON IN THE COMPANY. JASON: A COUPLE OF THINGS HAPPENED BETWEEN 2018 AND NOW. ONE IS A DOUBLED IN SIZE, FROM 2400 PEOPLE TO 4700 PEOPLE WORKING ON THEIR GAMES, WHICH IS AN ENORMOUS SHIFT IN HOW THEY DO OPERATIONS FOR JUST A HANDLE MANAGING ALL OF THOSE PEOPLE, YOU HAVE TO BUILD OUT AN ENTIRE LAYER OF MIDDLE MANAGEMENT AND A PRODUCTION TEAM JUST TO KIND OF KEEP TRACK OF WHAT IS GOING ON WITH THAT MANY PEOPLE. ONE OF THE REASONS THEY DID THIS IS BECAUSE THERE'S A BIG CONTROVERSY THAT THEY FACED IN 2018 WHICH IS THAT AFTER THE RELEASE OF THAT GAME I MENTIONED, RED DEAD REDEMPTION 2, THEY FACED A CONTROVERSY OVER CRUNCH, A TERM REFERRING TO EXCESSIVE OVERTIME, PEOPLE HAVING TO WORK NIGHTS AND WEEKENDS, NOT JUST FOR A WEEK OR TWO, BUT REALLY FOR WEEKS OR EVEN MONTHS ON END, SOMETIMES WITHOUT GETTING PAID EXTRA TO COMPENSATE FOR THAT. THAT BECAME A BIG FIRESTORM OF CONTROVERSY. WHEN I CAME HIM OUT AND ROCKSTAR DECIDED THEY WERE GOING TO TRY TO DEAL WITH THAT AND MITIGATE, TO THE BEST OF THEIR ABILITY COME THE CRUNCH FOR THIS PROJECT. CHRISTINA: SO HOW DID THEY DO THAT? I KNOW THAT I JUST LIKE EVERY ENTERTAINMENT OR CREATIVE INDUSTRY, THERE IS THIS GIVE-AND-TAKE ABOUT AI AND USING IT FOR CODING AND GRAPHICS BUILDING. WAS THAT INCORPORATED IN THIS PROCESS IN THIS GAME? WILL THEY BE INCORPORATED IN THE FUTURE? HOW ARE THEY WORKING FOR BACK WORKFLOW SO FOLKS ARE NOT SLEEPING IN THE OFFICE 24/7. JASON: YEAH. SO, AI, THEY SAY THEY HAVE NOT USED AI ON THIS PROJECT. WHO KNOWS WHAT WILL HAPPEN IN THE FUTURE. A LOT OF GAME COMPANIES ARE CERTAINLY EXPERIMENTING WITH IT. WE JUST BLOW THE NEWS AT -- BROKE THE NEWS AT BLOOMBERG THAT EPIC GAMES, THE MAKER AT FORTNITE, IS ALL IN ON AI, SO THAT AS A WHOLE OTHER CAN OF WORMS. AS FAR AS OTHER THINGS THEY DID COME OF ONE AS THEY DOUBLED THE SIZE OF THE STUDIO, BECAUSE HAVING MORE PEOPLE CAN MAKE UP FOR THE WORKLOAD. THEY TOLD ME THEY TRIED TO DO BETTER SCHEDULING, BETTER MEASUREMENT OF HOW MUCH A PERSON COULD REASONABLY DO IT DURING THE DAY WITHOUT GOING OVERBOARD. THAT SAID, A LOT OF THE MEASURES FROM WHAT I'VE HEARD TALKING TO PEOPLE THERE, THEY DEFINITELY DID STILL CRUNCH, THEY DID PUT IN OVERTIME. SOMETHING THEY DID TO TRY TO MAKE UP FOR THAT, KIND OF RECOGNIZING IT'S GOING TO HAPPEN ON A BIG, AMBITIOUS PRODUCT LIKE THIS, THEY STARTED OFFERING TIME IN A LIEU, WHICH MEANS EVERY HOUR YOU WORK THAT IS EXTRA, YOU WILL GET THAT OUR BACK IN PAID TIME OFF. SOME PEOPLE I TALKED TO ARE A SKEPTICAL THAT WHEN THE PROJECT ENDS, IT WAS HE THAT EXTRA TIME, BUT WE WILL SEE IF THEY DELIVER ON THAT PROMISE. LISA: THIS HAS A LOT TO LIVE UP TO, GTA 5, TWO .5 MILLION COPIES. CHRISTINA: CAN YOU TALK ABOUT THE PRICE, TOO? IT'S EXPENSIVE FOR A GAME. JASON: IT IS EXPENSIVE FROM $80, WHICH IS ON THE HIGHER END, $100 IF YOU WANT THE BONUSES AND THINGS LIKE THAT. I KNOW YOU TWO DEFINITE WILL BE -- IN LINE [LAUGHTER] LISA: I MAY TRY TO PLAY, BUT CONTINUED. JASON: IT'S THE FIRST MODERN GAME FROM ROCKSTAR GAMES WITH A FEMALE PROTAGONIST, WHICH WOULD OPEN UP ALL SORTS OF -- GRAND THEFT AUTO GAMES HAVE ALWAYS BEEN KNOWN AS, HERE IS ANOTHER GAME WERE GOING TILL PROSTITUTES AND GO TO STRIP CLUBS. THIS TIME I HAVE A FEMALE PROTAGONIST. CHRISTINA: THIS IS GOING BEYOND THE VIDEOGAME INDUSTRY, CORRECT? JASON: YEAH. I WILL SAY IT IS FUNNY, SEPTEMBER OF THIS YEAR WAS ONE OF THE MOST CROWDED GAME RELEASE MONTHS IN THE HISTORY OF THE INDUSTRY, BECAUSE EVERY SINGLE COMPANY AND SET UP, GRAND THEFT AUTO IS IN NOVEMBER, WE'VE GOT TO BACK AWAY TO GET AWAY FROM THAT. THIS IS AN UNPRECEDENTED EVENT. AS FAR AS THE SCOPE HERE, THE LAST GAME SOLD 39 MILLION COPIES, MAKING IT THE BEST-SELLING NONMOBILE GAME OF ALL TIME. SOME ANALYSTS ESTIMATE THIS WILL SELL SOMETHING LIKE 40 MILLION COPIES IN ITS FIRST FEW MONTHS ON SALE, AND THAT WOULD GENERATE MORE THAN $3 BILLION IN REVENUE. SO THIS WOULD BE, I MEAN, JUST FOR COMPARISON'S SAKE, IT WILL BE BIGGER THAN THE ENTIRETY OF "THE ODYSSEY," IN JUST A COUPLE OF WEEKS, POTENTIALLY. CHRISTINA:CHRISTINA: AND THE SCOPE OF THE GAME IS PHYSICALLY BIGGER THIS TIME, RIGHT? THEY ALWAYS DO "FAKE CITIES," FOR THE LAST ONE WAS L.A., AND THEY ARE SO ACCURATE FROM THE PEOPLE WHO PLAY THE GAME WHO'S GOING TO THESE CITIES, I KNOW EXACTLY WHERE I AM, I CAN DRIVE AROUND. YOU'VE GOT AN INSIDE LOOK AND SAID THEY WERE SENDING PEOPLE DOWN TO THE STATE OF FLORIDA THIS TIME TO FIGURE IT OUT? TELL US WHY THEY DID THAT AND WHY IT IS A BIGGER MAP. JASON: YEAH. SO, A BUNCH OF TOP ROCKSTAR DEVELOPERS GOT TO GO TO MIAMI FOR RESEARCH. CHRISTINA: YEAH. TEST GIG. [LAUGHTER] JASON: THEY TOLD ME THEY WERE DOING A HELICOPTER RIDE ALONG TO KIND OF SCOPE OUT THE AERIAL VIEWS OF THE CITY, SO THEY CAN MAP IT OUT IN THE GAME, AND ONE OF THE THINGS I DID, THEY WERE IN THIS CHOPPER -- THEY DID, THEY WERE IN THIS CHOPPER AND GET TO HOVER OVER A BEYONCÉ CONCERT, THEY GOT TO SEE BEYONCÉ PERFORM FROM THE AIR. I WAS LIKE, MAN, DID YOU GUYS GET SHOT DOWN? BEING IN BEYONCÉ'S AIRSPACE. [LAUGHTER] CHRISTINA: IT COULD BE DANGEROUS FOR ROTOR WATCH. JASON: YOU GOTTA BE CAREFUL WHEN YOU'RE SNEAKING INTO CONCERT FROM THE AIR. [LAUGHTER] THEY WENT ON POLICE RIGHT ALONGS, THEY MET WITH -- RIDE-ALONGS, THEY MET WITH CRIMINALS. THE DEVELOPERS TELL ME EVERY PERSON THEY MET WAS JUST EAGER TO START TELLING THEM ABOUT ALL THE CRIMES THEY COMMITTED. [LAUGHTER] THEY HEAR ABOUT GRAND THEFT AUTO, WHEN "THE SOPRANOS" CAME OUT, THE ACTORS WOULD GET THESE CALLS FROM RURAL MOBSTERS, "YOU GUYS NAILED THIS, YOU GUYS GOT THIS RIGHT,"'S OF REAL CRIMINALS ARE LOOKING AT GRAND THEFT AUTO. I DON'T KNOW IF IT IS INSPIRATIONAL FOR THE INCOME BUT CERTAINLY THEY WANT TO PLAY A ROLE BECAUSE THEY ARE FANS OF THE GAME. CHRISTINA: IT LENDS THAT AIR OF AUTHENTICITY. JASON: OF COURSE. LISA: THE BIG QUESTION, ARE WE GOING TO HAVE TO WAIT MORE THAN 10 YEARS FOR THE NEXT ONE TO COME OUT? JASON: IS IT A QUESTION. I DON'T KNOW IF IT WILL BE WORTH THE WAIT DID I HAVE NOT PLAYED THE GAME. WE WILL BE PLAYING IT ON BLOOMBERG, AND WE WILL BE REVIEWING IT AND COVERING ON THE WEBSITE ON BLOOMBERG. AS FAR AS THE NEXT GAME, THEY VOWED TO ME AND WILL NOT TAKE ANOTHER, SAY, EIGHT YEARS TO MAKE THEIR NEXT GAME. THEY FEEL LIKE THEY DON'T A LOT OF FOUNDATIONAL STUFF WITH THIS GAME, INCLUDING GETTING THAT TEAM KIND OF UP AND RUNNING, GETTING PEOPLE FAMILIAR WITH HOW THEIR PRODUCTION WORKS, HOW THEIR PIPELINES WORK, AND THEY FEEL LIKE NOW THAT THEY HAVE THESE FOUNDATIONS IN PLACE, IT WILL TAKE LESS TIME TO WORK ON, TO FINISH UP FUTURE EXPANSIONS, GAMES, WITH EVERYDAY WORK ON NEXT. CHRISTINA: JASON, THANK YOU SO MUCH. THAT WAS ABSOLUTELY FASCINATING. I DO WANT TO INVITE YOU TO PLAY IT. YOU CAN GUIDE US THROUGH IT, BECAUSE I'M TERRIBLE AT VIDEO GAMES. DAVID: ARE YOU? CHRISTINA: I'M SUPER COMPETITIVE, THOUGH, THAT'S WHY. WHEN WE COME BACK, WE WILL BE SPEAKING WITH BTW. ♪ CHRISTINA: WELCOME BACK TO "BLOOMBERG THIS WEEKEND," KNOWN BY ALL THE FINANCIAL PEOPLE ON THE SET -- FUN AND CHILL PEOPLE ON SET AS BTW. DAVID: SOMEONE CALLED ME A PEDANT FOR THIS, PEDANTIC FOR BTW. CHRISTINA: I LOVE THAT THAT HAS BEEN PICKED OUT BY PEOPLE WHO KNOW YOU. [LAUGHTER] LISA: WE'VE GOT TO MEET YOUR FRIENDS, TOO. CHRISTINA: TELL US MORE DAVID GURA STORIES. HAVE YOU BEEN TO A WAFFLE HOUSE? [LAUGHTER] LISA: I'VE BEEN THERE. LET'S START WITH TESLA. THE LONG-DELAYED ROADSTER SPORTS CAR, THIS VIDEO HAS BEEN ALL OVER THE PLACE. IT'S A PROTOTYPE TV, RIGHT? IT WAS DESIGNED -- IT'S A PROTOTYPE EV, RIGHT? IT WAS DESIGNED WITH SPACEX. IT IS ALLOWED TO FLIT IN MID AIR. CHRISTINA: THAT IS VERY SUSPICIOUS. LISA: A LOT OF PEOPLE SAY COME ON YOU KNOW WHAT, THAT IS NOT REAL. THAT DID NOT REALLY HAPPEN. OTHERS SAY THAT IS A MOVE TO BRING TESLA AND SPACEX TOGETHER. CHRISTINA: IT LOOKS LIKE A MODEL. IS THIS AN ACTUAL PEOPLE-SIZED CAR? DAVID: THIS CAN'T BE A FLYING CAR GOING UP A RAMP AND THEN FALLING DOWN GENTLY. LISA: IT FALLS, THEN THE THRUST PICKS IT BACK UP SO IT IS NOT HIT THE GROUND, THAT'S CONSIDERED FLYING, I GUESS. DAVID: THERE WERE COMMENTS FROM ELON MUSK THAT INDICATED THAT MAYBE THAT -- CHRISTINA: BOTH COMPANIES ARE REPORTING EARNINGS NEXT WEEK, TOO. LISA: SO THAT'S ANOTHER KIND OF, WOW, TIMING FOR THIS. CHRISTINA: OF COURSE! LISA: IT IS NOT STARTING PRODUCTION UNTIL 20 28. DAVID: AND WE'VE BEEN WAITING FOR THIS ROADSTER. LISA: PEOPLE HAVE PUT MONEY INTO THIS, AND IT IS JUST NOT HAPPENING. CHRISTINA: WHAT IS THE PRACTICAL APPLICATION OF THAT? DAVID: HAVE YOU MET ELON MUSK? [LAUGHTER] CHRISTINA: TOUCHÉ. LISA: WE WILL GO FROM ELON MUSK TO ANOTHER BILLIONAIRE. THIS WILL NOT A FLYING CAR BUT A PINT OF BUILD HERE -- BEER. THIS IS MARK ZUCKERBERG VERSUS THE PINT OF GUINNESS. THIS HAS BECOME A VIRAL MEME, FOR OUR RADIO AUDIENCE, I'M GOING TO DESCRIBE IT, BECAUSE I'M GOING TO SHOW THE VIDEO, AND UNFORTUNATELY YOU WILL NOT BE ABLE TO SEE IT. HE IS SITTING ALONGSIDE, HE TAKES A SIP OF BEER, AND IT'S HIS FACIAL EXPRESSION -- THIS IS A SIP OF GUINNESS, OK? THEY ARE SITTING AT A PUB, HE GOES TO SIP THE BEER, AND JUST HIS FACE, YOU DON'T KNOW -- DAVID: ADJUST THE COLLAR. CHRISTINA: HE LOOKS UNCOMFORTABLE. LISA: HE LOOKS LIKE A DRINK BATTERY ACID. AND IT'S AWKWARD. I'M NOT A GUINNESS FAN, BUT HE ACTUALLY LIKED IT. LIKE, HE DRANK A CUP AND A HALF OF IT. HE CAME WITH THE WHOLE KEG WITH IT STRAIGHT FROM THE COUNTRY. DAVID: FROM IRELAND. LISA: YEAH. HE CAME STRAIGHT FROM THERE, SO APPARENTLY HE LIKES IT, HE SENT A TWEET INSIDE, THAT'S MY THING, THAT'S THE FACE I MAKE. DAVID: HOW OFTEN HAVE I SENT A TWEET LIKE THAT, "IT'S JUST MY FACE"? [LAUGHTER] MAKE THAT HAPPEN. LISA: ALL RIGHT, SO ZUCKERBERG, HE'S GOT A LOT OF MONEY. HE DOES NOT NEED TO WORRY ABOUT RETIREMENT, BUT THERE'S A LOT OF PEOPLE WHO DO. I'M TRYING, GUYS. I'M WORKING, I'M WORKING. HERE'S THE HEADLINE FROM THE RETIREES ARE PUTTING OFF FUN TO PROTECT THEIR SAVINGS. THEY ARE NOT DOING THE FUN THINGS, OK? MORE THAN SIX IN 10 RETIREES, THIS IS FROM A STUDY, THEY SAY THEY DON'T FEEL COMFORTABLE SPENDING FOR ENJOYMENT. LIKE, THEY ARE WORRIED. MORE THAN HALF OF THEM SAY THEIR BIGGEST RETIREMENT CONCERN IS RUNNING OUT OF MONEY BEFORE THEY DIE. IF A VIABLE CONCERN CONSIDERING COSTS ARE RISING, RIGHT? HEALTH CARE, THINGS LIKE THAT, PEOPLE ARE LIVING LONGER. AND SOCIAL SECURITY BENEFITS MIGHT BE CUT BY 20%. DAVID: THEY ARE REALLY CHANNELING TOM KEENE. SOMETHING HE BEATS WEEK AFTER WEEK AFTER WEEK. WE ARE GETTING OLDER, IT COSTS MORE, AND IS SOCIAL SECURITY GOING TO BE THERE? LISA: THAT IS THE QUESTION. HERE CHRISTINA: IS THE THING, NOT TO OBAMA US OUT, BUT LIFE IS ONLY SO LONG, SOMETIMES YOU GOTTA TAKE THE TRIP. MY GRANDFATHER WAITED FOREVER TO TAKE HIS TRIP TO IRELAND, AND HE GOT SICK AND DID NOT GET TO GO. LIFE IS SHORT. SPEND A LITTLE BIT OF MONEY TO DO THE FUN THINGS. HAVE A GUINNESS. LISA: I HAVE THE GUINNESS. THIS IS A QUICK ONE. I KNOW CHRISTINA LOVES NAI'S STORY. WASHINGTON POST, SCIENTISTS ARE FINDING A I MAY MAKE US REMEMBER THINGS THAT NEVER HAPPENED. DAVID: WOW. CHRISTINA: LIKE A MANDALA AFFECT? LISA:LISA: PEOPLE WERE SHOWN PHOTOGRAPHS FROM A WEDDING, CITY STREET, A RACE COME AFTER THE RIGHT, HALF THE GROUP SAW THE SAME PICTURE, BUT ANOTHER GROUP SAW AI-ALTERED VERSIONS, SO SOME ARE LIKE FACIAL EXPRESSIONS CHANGED, CLIMATE CHANGE ADDED, SO THE MEMORY TEST AFTERWARD SHOWED MORE PEOPLE REMEMBERED, YOU KNOW, THE THINGS THAT WERE FAKE INSTEAD OF THE THINGS THAT WERE REAL. DAVID: WHAT IS REAL ANYMORE? LISA: THAT IS THE QUESTION, DAVID GURA! DAVID: I LIKE TO WADE INTO THESE EXISTENTIAL WATERS. CHRISTINA: WE DO NOT HAVE THE BANDWIDTH OF BACK KIND OF QUESTION HERE. THIS IS MY REALITY. DAVID: IS ANY OF THIS REAL? I'M JUST SAYING. CHRISTINA: IF I COULD ALTER THIS, I WOULD MAKE CHANGES. DAVID: WE ARE COMING UP ON 8:00 IN NEW YORK, REALLY. THE NEXT HOUR OF "BLOOMBERG THIS WEEKEND" STARTS RIGHT NOW. >> WELCOME TO BLOOMBERG "THIS WEEKEND." LIVE FROM NEW YORK WITH DAVID GURA, CHRISTINA RUFFINI, AND LISA MATEO. THE LATEST HEADLINES, KEY ANALYSIS, INTERVIEWS, AND THE STORIES THAT HIT HOME ON YOUR DAYS OFF. DAVID: WELCOME TO BLOOMBERG "THIS WEEKEND." 8:00 A.M. HERE IN NEW YORK. I'M DAVID GURA. CHRISTINA: I'M CHRISTINA RUFFINI. WE ARE HERE WITH LISA MATEO, RINGING YOU LATEST NEWS AND ANALYSIS FROM 7:00 TO 10:00 A.M. WE HAVE A LOT TO GET TO, SO WE ARE GOING TO GO STRAIGHT TO LISA. LISA: WE HAVE NEW DETAILS ABOUT THE GUNMAN WHO KILLED THREE CHILDREN AND A TEACHER AT SILVER RAIL ELEMENTARY SCHOOL. AS WELL AS THE PEOPLE WHO CONFRONTED THEM. THAT SHOOTER WAS A 16-YEAR-OLD FORMER SPECIAL NEEDS STUDENT AT THE SCHOOL. POLICE SAY HE JUMPED A FENCE WITH A SHOTGUN. THE SHOOTER BLASTED HIS WAY THROUGH THE SCHOOL'S LOCKED DOORS, THEN OPENED FIRE IN A SPECIAL EDUCATION CLASSROOM. THE POLICE CHIEF DESCRIBE WHAT HAPPENED NEXT. >> TEACHER IN THE CLASSROOM THREW HERSELF ON AT THE SUSPECT THEN TACKLED HIM. SHE WAS NOT INJURED IN THAT INCIDENT BUT SHE ALMOST CERTAINLY HELP TO PREVENT MORE BLOODSHED. LISA: ANOTHER HERO WAS APPARENTLY SO WHAT HAPPENING. HE FOLLOWED THE GUNMAN INSIDE AND SHOT HIM MULTIPLE TIMES. NO WORD ON A MOTIVE. LAST NIGHT A CANDLELIGHT VIGIL HELD BY AN ACTIVIST GROUP TO HELP THE COMMUNITY MORE THE LOSSES. ORGANIZERS SAID THE INTENTION WAS TO HELP RING THE GRIEVING COMMUNITY TOGETHER AND OFFER SOME HOPE. >> I REALLY, YOU KNOW, I'M KIND OF SPEECHLESS IN A WAY ABOUT THIS WHOLE TIME ZONE WE ARE IN RIGHT NOW. LISA: AFTER LESS THAN A WEEK AS WHITE HOUSE PRESS SECRETARY KATIE ZACHARIA, LEAVING THE POSITION. IT IS UNCLEAR IF SHE WILL TAKE ON ANOTHER ROLE IN THE ADMINISTRATION. IT COMES AFTER THAT KARI'S REST BRIEFING WAS WIDELY CRITICIZED -- ZACHARIA'S PRESS BRIEFING WAS WIDELY CRITICIZED. BEFORE BOARDING MARINE ONE PRESIDENT TRUMP ANSWERED QUESTIONS FROM REPORTERS ABOUT WHETHER HE WAS FIRING HER. PRES. TRUMP: I DON'T KNOW. WE ARE TALKING ABOUT, I WANT HER TO HAVE A GOOD LIFE. I DON'T WANT HER TO HAVE A LIFE LIKE SHE HAS LED IN THE LAST THREE DAYS. LISA: ZACHARIA CALLED PRESIDENT TRUMP KIND, HARD-WORKING MAN. IN OTHER NEWS, EVACUATIONS UNDERWAY FOR THOUSANDS OF RESIDENTS IN SOUTHERN CALIFORNIA FROM A NUMBER OF WILDFIRES FUELED BY HIGH WINDS. SEVERAL HOMES HAVE BEEN BURNED IN SAN JUAN CAPISTRANO IN ORANGE COUNTY. THE FIRE STARTED IN THE COASTAL CITY OF SHANKLE MENTE. DAVID: THANK YOU VERY MUCH, LISA. CHRISTINA: THIS MORNING WE ARE LEARNING THAT PRESIDENT TRUMP IS WAVING NEW SANCTIONS ON RUSSIA-RELATED TO ENERGY EXPORTS THAT EXPECTED TO TAKE PLACE IN A FEW DAYS. THIS IS IN ADDITION TO THE PRESIDENT'S DECISION TO WORK WITH VLADIMIR PUTIN TO RELEASE SOME OF HIS COUNTRY'S DIESEL SUPPLY INTO THE MARKET AND IT COMES AS CASUALTIES IN UKRAINE ARE SURGING. THEY JUMPED BY 80% IN SEPTEMBER AS RUSSIA INCREASED DRONE ATTACKS. DAVID: DAVID MILIBAND IS PRESIDENT OF THE INTERNATIONAL RESCUE COMMITTEE. HE WAS FORMALLY THE U.K.'S FOREIGN SECRETARY AND WE SAT DOWN WITH HIM TO TALK ABOUT A RECENT TRIP HE TOOK TO UKRAINE AND THE MIDDLE EAST, AFRICA, AND HOW THAT ORGANIZATION HE RUNS HIS NAVIGATING THE NEW WORLD IN WHICH THE U.S. PLAYS A MUCH SMALLER ROLE. DAVID: YOU'RE OBVIOUSLY AN AMERICAN-HEADQUARTERED NON-GOVERNMENTAL ORGANIZATION FOUNDED BY A GREAT REFUGEE IN AMERICA. WE ARE DOWN TO $8 MILLION FROM THE U.S. GOVERNMENT FOR OUR NATIONAL PROGRAMS, DOWN FROM JUST UNDER $300 MILLION. I THINK OF IT IN TERMS OF KIDS IN AFGHANISTAN, BOYS AND GIRLS NOT GETTING EDUCATED. I THINK OF IT IN TERMS OF REFUGEES FROM SUDAN, THE WORLD'S LARGEST HUMANITARIAN CRISIS IN SOUTH SUDAN, ONE OF THE POOREST COUNTRIES IN THE WORLD NOT GETTING HEALTH SERVICES. FARMERS NOT GETTING HELP TO ADAPT TO CLIMATE CHANGE. IT MEANS OVER 2 MILLION CLIENTS HAVE LOST SERVICES AS A RESULT OF REDUCTIONS IN U.S. GOVERNMENT FUNDING. OBVIOUSLY THE AID SECTOR IS GOING THROUGH THIS TRAUMATIC REBALANCING, REALLY, WHERE THE PEOPLE WHO ARE IN MOST NEED IN THE WORLD'S CRISIS ZONES ARE GETTING LESS AND LESS TO KEEP THEM GOING. IS THIS AN ONGOING CONVERSATION WITH THE U.S. OR WHERE FUNDING IS GOING TO BE FOR THE FORESEEABLE FUTURE? DAVID: I HOPE IT IS ONGOING AND WE ARE COMMITTED TO REFORMING SYSTEMS, DRIVING UP IMPACT, IMPROVING COST EFFICIENCY. CHRISTINA: THE DEMANDS? DAVID: WE DON'T WANT THE DEMANDS TO BE GOING UP, BUT THEY ARE GOING UP. IT IS A GROWTH INDUSTRY FOR ALL OF THE WRONG REASONS. WE TALK ABOUT THIS BEING THE TIME OF SHOCKS, BUT FEWER SHOCK ABSORBERS. ONE OF THE ROLES IS TO BE A SHOCK ABSORBER FROM CONFLICT, BUT ALSO FROM EBOLA. A DISEASE THAT IS SPREADING AT AN UNPRECEDENTED RATE. THE IMPACT OF THE WAR IN IRAN, THE FUEL PRICES ON -- AND FERTILIZER SUPPLIES. THOSE HAS A -- HAVE EFFECTS ON ALL OF US, BUT THEY HIT THE POOR THE HARDEST AND AGE SHOULD BE TRYING TO PROVIDE INSULATION, RESILIENCE AGAINST THAT KIND OF SHOCK. DAVID: YOU HAVE CHARACTERIZED THIS AS NEW WORLD DISORDER AND I WANT TO ASK YOU ABOUT EBOLA. AS YOU SAY, IT HAS BEEN SPREADING. HAVE SEEN A CASE IN KENYA. AS YOU LOOK AT THE PUBLIC HEALTH APPARATUS GLOBALLY HOW HANDICAPPED IS IT IN LIGHT OF THE FACT THAT ALL OF THIS FUNDING HAS BEEN CUT? I HAVE LIVED THROUGH OTHER OUTBREAKS WHERE I FEEL IT WAS, IF NOT FRONT OF MIND FOR A LOT OF PEOPLE, MORE OFTEN ON THE FRONT PAGES OF NEWSPAPERS THAN IT IS NOW. HOW DO YOU SEE IT ENDING? DAVID: IT WILL END WITH LARGE NUMBERS OF CASUALTIES. AT THE MOMENT THE RATE OF DETECTION IS QUITE LOW, AMONG THOSE WHO ARE DEAD TECH DID AS HAVING EBOLA, HALF OF THEM ARE DYING, AND THAT IS WHY YOU ARE SEEING IS VERY SCARY CURVE THAT SHOWS WE ARE MISSING MOST OF THE PEOPLE. THEY ARE DYING AT HOME WITHOUT BEING DIAGNOSED, BUT THOSE GOING AT THE HOSPITAL ARE LOSING OUT. NOW, THERE IS TWO THINGS KEY IN AN EBOLA OUTBREAK. THE SECOND ONE IS NOT OBVIOUS. THE FIRST IS, YOU NEED TREATMENT. THE SECOND IS, WITHOUT TRUST NO ONE WILL GIVE YOU THEIR NAME. THEY WILL NOT TELL YOU THEIR CONTACTS. THAT IS A REAL DANGER. THE EASTERN DEMOCRATIC REPUBLIC OF CONGO IS A WAR SOME. THERE ARE 120 DIFFERENT MILITIAS. YOU KNOW THIS WELL. WE ARE WORKING ON THE GROUND, BUT WE ARE WORKING ON BOTH ENDS, BOTH ON THE RESOURCES TO DETECT THE DISEASE, AND THE FEAR, THE ARROWS ARE POINTING IN THE WRONG DIRECTION. DAVID: LET'S MOVE FROM ONE CONFLICT ZONE TO ANOTHER. THAT IS UKRAINE, WHERE WE SEE A MACRO BINARY BETWEEN PRESIDENT ZELENSKYY AND PRESIDENT TRUMP AND THIS REPORTED DIESEL DEAL. WHAT DID YOU NOTICE WHEN YOU WERE THERE? HOW DID YOU NOTICE -- WHAT DID YOU NOTICE? DAVID: I WAS ALONG THE SOUTHERN BORDER, FROM RELATIVELY-SAFE ODESSA, BUT NOW TARGETED ODESSA. THE SOUTHWEST OF THE COUNTRY ALL THE WAY TO THE SOUTHEAST, WHICH GETS TOWARD THE FRONT LINE. COURSE, THE WHOLE NOTION OF A FRONT LINE BEEN CHANGED BY THE USE OF BALLISTIC MISSILES. WHAT DID I NOTICE? FIRST OF ALL, THE PEOPLE WHO ARE LEFT ARE STILL BEING BRUTALIZED. I WENT TO TOWNS AND VILLAGES THAT HAD PREVIOUSLY BEEN UNDER OCCUPATION. NOW THEY HAVE DRONES OVERHEAD. IT IS A BRUTAL SITUATION. THOSE WHO STAYED ARE THE ELDERLY, DISABLED. THOSE WHO FEEL THEY CANNOT LEAVE. IT IS A VERY TOUGH LIFE FOR THEM. THEY ARE WORRIED ABOUT THEIR SONS AND HUSBANDS IN THE ARMED FORCES AND WORRIED ABOUT THEIR DAUGHTERS AND GRANDKIDS WHO HAVE LEFT AND GONE TO EUROPE IN THE MAIN. SO, THE PSYCHOLOGICAL TOLL IS HIGH, AND FRANKLY, EVEN IN THE EARLY SUMMER WHEN I WAS THERE PEOPLE WERE STEELING THEMSELVES FOR THE WINTER. THEY COULD SEE THAT THIS WAS GOING TO BE A BRUTAL MOMENT. RUSSIA IS NOT ROLLING THROUGH THE FRONT LINES IN THE ARCTIC GOES FROM KHARKIV IN THE NORTHEAST DOWN TO THE SOUTHEAST. BUT THEY ARE TRYING TO BOMB THE UKRAINIANS INTO SUBMISSION. THAT HAS ALWAYS BEEN THE FEAR, AND OF COURSE YOU WOULD HAVE BACKUP GENERATORS, BUT WHEN YOU ARE TALKING ABOUT CITIES LIKE ODESSA OR KYIV, THEN THE DANGER OF THE MASS BOMBING IS THAT IT OVERWHELMS THE DEFENSES. CHRISTINA: IF IT COMES TO THIS WINTER FRONT AND IT IS AN ENDLESS AIR ASSAULT, ESPECIALLY GIVEN THE FIGHT OVERCAPACITY, OVER STARLINK, WHETHER THEY ARE ABLE TO TRACK THESE MUNITIONS AND SHOOT THEM DOWN EVEN WITH THE LIMITED PATRIOTS THEY HAVE AT THE MOMENT, WHAT DO UKRAINIANS WANT AT THIS POINT? I HAVE FRIENDS I TALK TO BUT IT HAS BEEN A WHILE SINCE I WAS ON THE GROUND. DO THEY WANT TO KEEP FIGHTING? DAVID: 1000%. EVERY DAY THAT GOES PAST, EVERY PERSON LOST MAKES THEM SAY THEY ARE MORE DETERMINED NOT TO LIVE UNDER RUSSIAN OCCUPATION. I THINK WHAT THEY WANT IS DEFENSE, SOLIDARITY, SUPPORT. AND ON THE OTHER SIDE OF THE EQUATION THEY WANT PRESSURE ON RUSSIA, BECAUSE THEY CAN SEE THERE ARE TWO SIDES TO THIS AND THEY ARE THE VICTIMS OF AGGRESSION. THERE IS NO QUESTION ABOUT IT. IT IS THEY ARE TOWARD -- THEIR TERRITORIAL INTEGRITY THAT IS BEING ATTACKED. SO, THEY ALSO WANT TO KNOW THAT THERE IS PRESSURE ON THE RUSSIANS. NOW, IT IS INTERESTING BECAUSE I WAS IN EUROPE LAST WEEK. EUROPE IS MORE AND MORE CONSCIOUS OF THE THREAT THAT IS POSED TO EUROPE FROM THE TRAJECTORY OF THE CONFLICT. NOT JUST THE THREAT POSED TO UKRAINE. WEST OF EUROPE IN LONDON OR DUBLIN THEY ARE VERY SOLID ON THIS BECAUSE THEY SEE THE THREATS TO THEMSELVES, AS WELL AS THE THREATS TO THE UKRAINIANS. DAVID: YOU HAVE COLLEAGUES WHO HAVE BEEN TO YEMEN RECENTLY. DAVID: WE HAVE COLLEAGUES IN YEMEN TODAY. DAVID: WHAT CAN YOU TELL US ABOUT THE PROSPECTS FOR THE CON -- THAT CONFLICT? IT DOES SEEM THERE IS PERPETUITY IN THE CONTEXT OF UKRAINE, BUT NO CLEAR RESOLUTION TO WHAT WE ARE SEEING. DAVID M.: I USED THE PHRASE ABOUT BOMBING INTO SUBMISSION WITH RESPECT TO THE UKRAINIANS. WHAT WE KNOW IS, YOU CANNOT BOMB YEMEN INTO SUBMISSION. YOU CANNOT BOMB ANSWER ALONG, THE HOUTHIS INTO SUBMISSION. THERE IS A WAR FROM 2016 TO 2020. THERE HAS THEN BEEN A PERIOD OF RELATIVE PEACE. OBVIOUSLY THERE IS AN ESCALATION RATCHET IN THE CONFLICT OVER IRAN, THAT THERE IS ALSO AN ESCALATION IN TERMS OF THE BROADENING OF THE CONFLICT INTO YEMEN. THAT IS WHAT MAKES THIS SUCH A VOLATILE PERIOD. OUR PEOPLE ON THE GROUND, THEY WERE HELPING PEOPLE -- REMEMBER TWO WEEKS AGO, A TOWN TAKEN BY HOUTHI FORCES. OUR PEOPLE ARE THERE. THERE HAS BEEN PUSHED BACK, AND OBVIOUSLY WHAT THEY ARE CONCERNED ABOUT IS THIS BECOMES ANOTHER FOREVER WAR. WE HAVE TOO MANY GOING ON IN THE WORLD. 61 CONFLICTS GOING AROUND -- GOING ON AROUND THE WORLD AT THE MOMENT. A TRAGIC FAILURE OF DIPLOMACY. BUT THE DANGER IS THAT YEMEN JOINS THE CATEGORY AND THAT MAKES FOR A VOLATILE MIDDLE EAST BECAUSE YOU HAVE BOTH THE RED SEA AND THE STRAIT OF HORMUZ THREATENED. CHRISTINA: NOT TO BUM US OUT FURTHER, BUT I WANT TO ASK YOU ABOUT SUDAN. WE HAVE GOT THIS COMBINATION OF DROUGHT AND EL NIÑO IS MAKING THE WEATHER WORSE. THE CROPS ARE FAILING AND THIS IS ALREADY A DESPERATE SITUATION. CAN YOU UPDATE US ON WHAT IS NEEDED? DAVID M.: SUDAN, TAKE YOUR VIEWERS TO THE NORTHEAST OF AFRICA. A CRITICAL CORRIDOR BECAUSE OF SUDAN BORDERING THE RED SEA. SO, SIGNIFICANT STRATEGICALLY. YOU WILL KNOW THAT DIFFERENT PARTS OF THE RELEASE POWER STRUCTURE ARE SUPPORTING DIFFERENT SIDES IN THE SUDAN CIVIL WAR. IT IS A COUNTRY OF 45 MILLION PEOPLE. HE MILLION ARE IN HUMANITARIAN NEED. ABOUT 11 MILLION ARE DISPLACED WITHIN THEIR COUNTRY. BUT MUCH THE WHOLE POPULATION OF KHARTOUM WAS DISPLACED THREE AND HALF YEARS AGO WHEN THE WAR STARTED. YOU HAVE GOT PEOPLE FLEEING INTO SOUTH SUDAN AND CHAD, WHICH ARE INCREDIBLY POOR COUNTRIES IN AND OF THEMSELVES. AT THE MOMENT THE DIPLOMATIC EFFORT IS STUCK ON THE SUDAN FILE. THERE IS FRAGMENTATION, MORE BLOODSHED, AND A DESPERATE NEED, REALLY, FOR THE KIND OF IMPULSE THAT WAS THE ORIGINAL IDEA BEHIND THE U.S.-CREATED GROUP. THIS WAS AN INITIATIVE OF THE TRUMP ADMINISTRATION. IT WAS A WELCOME INITIATIVE. CHRISTINA: I WENT WITH POMPEO TO KHARTOUM. THEY WERE TRYING TO BRING THEM IN. DAVID M.: BUT WAS GREAT ABOUT THE SECOND TRUMP ADMINISTRATION WAS THE U.S., SAUDI ARABIA, EGYPT, AND THE UAE, BACKERS OF DIFFERENT SIDES, IT HASN'T MANAGED TO GET ANY PROGRESS SINCE A YEAR AGO, WHEN IT SET OUT A SO-CALLED ROADMAP TO RESOLUTION. WE KEEP SAYING, LOOK, THAT CANNOT AFFORD TO FALL OFF THE TO DO LIST. THEY ARE NOT IMPORTANT ENOUGH TO GET RESOLVED, SO THEY METASTASIZE AND GET WORSE. DAVID: WANT TO ASK YOU ABOUT AI. PEOPLE ARE RECKONING WITH ROUTER RAMIFICATIONS, THINKING ABOUT THIS EXISTENTIAL THREAT. HOW DOES A PLANE IN YOUR WORLD WHEN WE TALK ABOUT THESE CONFLICT SURROUND THE WORLD? HOW DO YOU THINK ABOUT THE ROLE AI IS PLAYING GOING FORWARD? DAVID: IT IS PERIL AND POTENTIAL, ISN'T IT? IF YOU READ THE ANTHROPIC THREAT ASSESSMENT YOU MIGHT BE SURPRISED TO FIND THAT NEEDS YEAR, -- NIGER, OTHER HOTSPOTS, SUDAN APPEAR THERE. WHY? BECAUSE THERE IS A REALITY THAT DIFFERENT NON-STATE ACTORS ARE USING AI FOR TARGETING, FOR SURVEILLANCE, FOR PRECISION BOMBING. THERE IS THE VERY CLEAR PERIL. ON THE OTHER HAND I KNOW FROM OUR OWN EMBRACE OF THE POTENTIAL FOR AI FOR PROGRAMMING WHEN WE ARE TRYING TO MAP, WHERE IS THEIR ACUTE MALNUTRITION? AI'S ABILITY TO AGGREGATE DATA AND SAY THESE ARE THE COMMUNITIES THAT HAVE THE HIGHEST CHILD NEW TO -- CHILD MALNUTRITION, WHEN I THINK ABOUT AI UPPING US GET INFORMATION FOR REFUGEES -- WE RUN A GLOBAL INFRASTRUCTURE THAT HELPS CREATE INFORMATION FOR PEOPLE ON THE RUN AS REFUGEES IN DIFFERENT PARTS OF THE WORLD FROM CONFLICT. 20 INSTANCES AROUND THE WORLD. AI IS HELPING US GIVE REAL-TIME INFORMATION AND IT IS NOT ALL IN ENGLISH. IT IS TRANSLATED. THAT IS A FANTASTIC BENEFIT. SO, PERSONALIZING OF SERVICES AS WELL. ALSO, IT IS IMPORTANT TO SAY THERE IS A PREEMPTIVE ROLE AI CAN HELP PLAY IN US GETTING READY FOR CLIMATE EVENTS AND OTHER EVENTS. THERE IS BIG POTENTIAL AND I WANT TO MAKE SURE CERTAINLY FOR OUR OWN ORGANIZATION, BUT THE WIDER SECTOR THAT THE PERIL DOESN'T PERSUADE PEOPLE THE POTENTIAL SHOULD BE NEGLECTED. WE HAVE TO MAKE SURE THAT THIS BREAKTHROUGH OF EXTRAORDINARY CONSEQUENCE DOES NOT EXACERBATE THE K-SHAPED YOU TALK ABOUT ON YOUR ECONOMIC PROGRAMS. THE DANGER IS THAT PEOPLE GET LEFT BEHIND EVEN FURTHER. CHRISTINA: WE WERE SPEAKING THIS INTERVIEW ABOUT YOUR LACK OF FUNDING AND WE HAVE TALKED ABOUT USAID AND PULLING OUT OF THE WORLD HEALTH ORGANIZATION. WHEN YOU MAKE THE CASE TO THIS ADMINISTRATION, BUT TO AMERICANS WHO TEND TO BE INSULAR WHEN IT COMES TO SOME OF THIS STUFF, DO YOU THINK THEY ARE MISSING THE PRAGMATIC PART OF THAT ARGUMENT? MAKING SURE THERE IS AN 80 SAFETY NET IS NOT JUST ABOUT ALTRUISM? DAVID M.: IT IS NOT JUST THE U.S. THAT IS COMING. IT IS NOT THE ONLY GUILTY PARTY AND THE EUROPEANS ARE INCREASING THEIR AID FUNDING. MY COMRADES IN THE LABOUR PARTY, I'M AFRAID, ARE REDUCING FUNDING. SECONDLY, DON'T BE TOO TOUGH ON YOUR OWN COUNTRYMEN. 89% OF AMERICANS IN A POLL LAST YEAR, VERY CAREFUL POLL, SAID AT LEAST 1% OR 1% OF THE FEDERAL BUDGET SHOULD GO ON FOREIGN AID. FOR EVERY 99 SINCE YOU ARE SPENDING AT HOME, SPEND A PENNY ABROAD. NOW, AS YOU KNOW, 1% OF THE FEDERAL BUDGET WAS BEING SPENT ON FOR NATE, BUT THE PROBLEM WAS 55% OF AMERICANS THOUGHT 20% OF THE FEDERAL BUDGET WAS GOING FOR EIGHT. DON'T BE TOO TOUGH ON YOUR OWN FELLOW CITIZENS WHEN, AS YOU CAN TELL FROM MY ACCENT I'M NOT FROM BROOKLYN ORIGINALLY. . CHRISTINA: WE WOULD LIKE TO HEAR YOUR PLAN ACCENT. DAVID M.: WHEN YOU SAY TO PEOPLE , IS IT WORTH TWO DOLLARS A SHOT TO DELIVER A VACCINE? IS IT WORTH $60 FOR SIX-WEEK COURSE OF MALNUTRITION TREATMENT AMERICAN SAY, COME IN FOR THAT. THAT IS THE CASE WE ARE MAKING. DAVID: DAVID, THANK YOU VERY MUCH. CHRISTINA: HE IS HEADING TO PAKISTAN. I THINK THIS WEEK? DAVID: I WAS STRUCK BY WHAT HE SAID ABOUT PERCEPTION OF A WE TALKED TO SAMANTHA POWER, WHO SAID THE SAME THING AS USAID WAS COLLAPSING. ALL OF THESE NARRATIVES WERE SWIRLING. AND THERE WAS NO REAL EASY WAY TO REBUT THAT. THE DOGE CREW AND THE ADMINISTRATION WON THIS POPULAR ARGUMENT ON PERCEPTION OF WHAT THE AID WORKERS DOING AND HE IS POINTING OUT THAT IS A PERSISTENT PROBLEM. CHRISTINA: I DON'T THINK THERE WAS ENOUGH MADE OF THE PRAGMATIC, SELFISH PURPOSE OF AID IN THAT IT DOES PREVENT PROBLEMS FROM GETTING BIGGER AND COSTING MORE LATER. THERE WAS ALSO AN ARGUMENT THAT WASN'T MADE AT THE TIME. DAVID: FASCINATING TO HEAR ABOUT THE WIDE WORK HE IS DOING. NEVER THAT DEFICIT HE WAS TALKING ABOUT. CHRISTINA: A LOT TO DO AND LESS TO DO IT WITH. DAVID: BAD NEWS FOR THE NEO-CLOUDS AS COREWEAVE'S STOCK CRASHED THIS WEEK OVER A DIRE WARNING ABOUT THE FUTURE OF THESE AI-FUELED COMPANIES. THE NVIDIA CEO WEIGHS IN. BARRY RITHOLTZ IS GOING TO JOIN US. STAY WITH US. ♪ LISA: THANK YOU FOR JOINING US LIVE ON BLOOMBERG "THIS WEEKEND." PEOPLE ARE LINED UP OUTSIDE OF A ROME HOSPITAL AFTER DOCTORS ANNOUNCED POPE LEO WILL BE DISCHARGED TODAY. THEY SAY BLOOD TESTS, CHEST X-RAYS, AND AN ASSESSMENT OF HIS STATUS SHOWS HE IS FIT TO LEAVE. THE POPE WAS ADMITTED ON TUESDAY AFTER SURGERY TO REMOVE A TUMOR FROM HIS RIGHT LUNG. WE WILL KEEP YOU UPDATED ON THAT. SEAN COMBS HAS MOVED TO A NEW PRISON. THE ASSOCIATED PRESS SAYS IT COMES AFTER REPORTS OF HIS LUXURY LIFESTYLE BEHIND BARS AND AFTER HE WAS INJURED IN NEW JERSEY. WE WILL BE MOVED TO A LOW SECURITY FACILITY IN PENNSYLVANIA. SOME OF BLAIR'S REPRESENTATIVES SAY THE ACTRESS DID NOT INTEND TO HARD -- HARM ANYONE DURING A RECENT FLIGHT. BLAIR EXPERIENCED A MEDICAL EMERGENCY SHE WAS ACCUSED OF INJURING FLIGHT ATTENDANTS, LATER KICKING A POLICE OFFICER AND NURSE. REPRESENTATIVES SAY BLAIR'S CONDITIONS -- CONDITION CAN CAUSE EPISODES THAT MIGHT BE MISUNDERSTOOD. SHE PLEADED NOT GUILTY AND IS FREE ON BAIL. SIX FLAGS OVER GEORGIA OPENED ITS GATES LAST NIGHT FOR THE FIRST TIME SINCE A MAN FELL TO HIS DEATH FROM ONE OF THE AMUSEMENT PARK'S ROLLER COASTERS. A 42-YEAR-OLD MAN FROM ATLANTA WAS SHOWN FROM -- THROWN FROM THE RIDE ON MONDAY. INVESTIGATORS ARE INVESTIGATING WHAT LED TO THAT FALL. THAT WAS A SCARY STORY, INDEED. DAVID: I'M NOT A VIDEOGAME PERSON OR A ROLLER COASTER PERSON. CHRISTINA: I LOVE THEM. I DON'T LOVE AMUSEMENT PARKS, BUT I LOVE ROLLER COASTERS. I'M AN ADRENALINE JUNKIE. DAVID: WHAT ARE YOU DOING THERE? WHERE ARE YOU GOING? CHRISTINA: HUMANS MAKING ME WAIT IN LINE. I WILL GO. THIS IS ONE OF THOSE THINGS, WHEN YOU ARE GETTING ON THEM YOU ARE SAYING, THIS DOESN'T HAPPEN, THIS WILL BE FINE. DAVID: DOES SHE GO TO BUSCH GARDENS IN DENVER, THE OLD ONE? CHRISTINA: THE OLD ONE. LISA IS LIKE, I DON'T KNOW WHAT YOU ARE TALKING ABOUT. DAVID: THERE IS A NEW SENSE OF ANXIETY OVER AI AS A ROUTE IN CHIP STOCK SEMICONDUCTORS CONTINUED FOR THE EIGHTH DAY IN A ROW. THAT IS THE LONGEST STREAK SINCE 2008. CHRISTINA: COREWEAVE TUMBLED 12% ON FRIDAY AND 20 PRIVATE PERCENT IN THE PAST WEEK OVER CONCERNS -- 25% OVER THE PAST WEEK OVER DEBT IN THE AI BUILDUP. DAVID: JOINING US NOW IS BARRY RITHOLTZ. THE HOST OF THE MASTERS IN BUSINESS PODCAST. GREAT TO SEE IT. LET'S START WITH COREWEAVE AND THE WAY YOU ARE LOOKING AT WHAT REALLY DROVE MARKETS. DO YOU SEE IT AS AN OUTLIER? OR IS IT TELLING YOU SOMETHING ABOUT WHERE THE AI TRADE IS GOING DIRECTIONALLY? BARRY: THERE ARE SOME ANY CROSSCURRENTS AROUND THE AI TRADE, WE ARE ALWAYS SEARCHING FOR THE, THIS IS WHAT HAPPENED. A, IT WAS OIL AT $110 A BARREL, THAT SENT YIELDS BURNING, AND COREWEAVE HAS A LOT OF DEBT, BUT I THINK IT IS REALLY JUST A BROADER ISSUE, WHICH IS, THIS MARKET HAS HAD A SPECTACULAR RUN, NOT ONLY THE PAST FOUR YEARS, BUT REALLY SINCE THE LOWS IN 2009 AND PEOPLE ARE STARTING TO GET A LITTLE NERVOUS. ESPECIALLY WHEN YOU ARE LOOKING AT A TRANSFORMATIONAL NEW TECHNOLOGY. MARKET HISTORIANS NOW, EVERY TIME A NEW TECHNOLOGY COMES ALONG THERE IS ALWAYS WINNERS AND LOSERS, MASSIVE MISALLOCATION, AND PEOPLE ARE STARTING TO GUESS, HEY, WHO ARE THE WINNERS AND LOSERS OF THIS? WHO HAS TOO MUCH DEBT? WHERE DO WE NEED TO THROTTLE BACK A BIT? CHRISTINA: WE HAVE BEEN TALKING ABOUT THIS FOR MONTHS NOW AND IT IS UNCLEAR WHICH ASPECTS OF THIS TECHNOLOGY ARE ACTUALLY GOING TO MAKE -- I LEARN EVENTUALLY -- ARE GOING TO MAKE MONEY. IS THIS A REFLECTION OF EXACTLY THAT? WANT TO TAKE A PAUSE AND SEE -- THEY WANT TO WAIT TO SEE IF THIS TECHNOLOGY IS ACTUALLY PROFITABLE? BARRY: THAT IS ALWAYS THE CHALLENGE. I THINK THE BIGGEST THREAT IS FROM THE OPEN SOURCE AI SYSTEMS LIKE DEEP THINKER. I HAVE SIX DIFFERENT AI APPS ON MY PHONE. CHRISTINA: THAT IS MY NIGHTMARE, BUT OK. [LAUGHTER] BARRY: THE FUN THING IS, I ASKED CLAUDE SOMETHING AND, HEY, YOU HAVE USED 75% OF YOUR CREDITS FOR THE MONTH AND IT IS ONLY OCTOBER 17. SO THEN I WILL HOP OVER TO CHAT AND GEMINI AND WORK YOUR WAY DOWN. PERPLEXITY, DEEPSEEK. IT IS JUST A WAY OF ALLOCATING MORE EXPENSIVE TASKS TO HIGHER QUALITY, OR NOT AS HIGH QUALITY ISSUES. BUT BACK TO THINGS LIKE COREWEAVE. I DON'T THINK THERE IS A THREAT THAT THIS IS NOT GOING TO MAKE MONEY. I DON'T THINK THAT IS THE PROBLEM. THIS IS A GIANT, TRANSFORMATIONAL TECHNOLOGY. I THINK IT WAS CAN TO FITZGERALD, SAID ALL OF THE 2027 CAPACITY, THAT THEY HAD TO GO OUT TO SELL ON CONSTRUCTING DATA CENTERS, WAS ALREADY SOLD OUT. 2027. SO, IT IS NOT THAT THE FUNDING IS NOT THERE. IT IS, WHICH OF THESE COMPANIES ARE GOING TO STICK AROUND? WHO WERE THE WINNERS AND WHO ARE THE LOSERS? IT IS ALWAYS SO HARD TO TELL. FLIP BACK TO COMPUTERS. IN ADDITION TO APPLE AND DELL YOU HAD IBM AND GATEWAY AND HP AND, GO DOWN THE LIST. ALL OF THOSE COMPANIES LOOK LIKE WINNERS. MOST OF THOSE COMPANIES EXITED THAT SPACE A LONG TIME AGO. DAVID: ONE MORE QUESTION ON AI. EMILY CHANG WAS TRAILING JENSEN HUANG AS HE MADE HIS WAY ACROSS EUROPE. HE ADDRESSED THE CONCERN WE WERE SEEING IN THE MARKETS THIS WEEK. LET'S PLAY WHAT HE HAD TO SAY TO EMILY. >> ALL OF THIS IS GOING TO PASS. THE REASON FOR THAT IS SIMPLE. WE ARE GOING THROUGH A NEW PLATFORM TRANSITION. THE COMPUTER SYSTEMS, THE COMPUTERS WE USED TO RUN SOCIETY -- COUNTRIES AND COMPANIES TODAY -- IS BEING REINVENTED AND WE CANNOT GO BACK. WITH RESPECT TO SOME OF THE NEWS, IT IS CHOPPY NEWS, NEWS, AS YOU KNOW, HAPPENS ALL THE TIME AND -- BUT IT WON'T CHANGE THE FUNDAMENTALS. DAVID: LET ME ASK YOU ABOUT THE ROLE JEN-HSUN HUANG AND NVIDIA IS PLAYING HERE. IT'S IS A NOVEL GROUND. WE HAVE TALKED ABOUT THIS BEFORE. I WAS ON AIR WITH DANI BURGER THIS WEEK. SHE TALKED ABOUT THE CENTRAL BANK AND NVIDIA AND JENSEN HUANG. HE IS AN INVESTOR IN COREWEAVE. HE IS PLAYING THIS OUTSIZED ROLE IN THE AI UNIVERSE. I WONDER IF COMMENTS LIKE THAT AND GENDER COMFORT IN YOU, AS YOU HEAR THE WORRY AND SPECULATION ABOUT THE PROSPECTS AND PROBLEMS OF CIRCULAR FINANCING? IS JENSEN HUANG SAYING EVERYTHING IS GOING TO BE FINE GROUNDS FOR YOU TO BE FINE WITH WHERE THINGS ARE HEADED? BARRY: I ALWAYS LAUGH WHEN SOMEONE IS A MULTIBILLIONAIRE AND THEY SAY, HEY, MY COMPANY AND ALL OF THE REVENUE AND PROFITS WE ARE GENERATING, DON'T WORRY ABOUT THE EXCESS CAPACITY OR, TO WE REALLY NEED 1000 DATA CENTERS THAT ARE 20 ACRES EACH? HE IS NOT EXACTLY A DISINTERESTED PARTY IN THIS ISSUE. I DON'T DISAGREE WITH HIM. THAT IS THE IRONIC PART. I THINK WHAT HE IS -- FIRST OF ALL, THERE IS FEW PEOPLE IN THE WORLD BETTER SITUATED TO EVALUATE WHAT IS GOING ON OTHER THAN THE FACT THAT PERHAPS HE IS NOT THE MOST DISINTERESTED, OBJECTIVE PERSON IN THIS. ALL OF THAT SAID, EVERY TIME A NEW TECHNOLOGY OR TRANSFORMATIONAL TECHNOLOGY COMES ALONG THERE ARE WINNERS AND LOSERS. THERE ARE SECONDARY EFFECTS. THERE ARE UPS AND DOWNS. IT IS NEVER A STRAIGHT LINE. THINK BACK TO THE BUILDOUT OF BROADBAND AND COMPANIES LIKE JUNIPER NETWORKS AND GLOBAL CROSSING AND METRO MEDIA FIBER AND ALL OF THOSE THINGS. THOSE COMPANIES ALL WENT BELLY UP AND WE WERE ABLE TO PURCHASE THE BROADBAND ON THE OTHER CITED BANKRUPTCY FOR PENNIES ON THE DOLLAR. THAT IS WHAT LED TO COMPANIES LIKE YOUTUBE AND NETFLIX ABLE TO DO STREAMING AND FACEBOOK AND GO DOWN THE LIST OF EVERYBODY THAT IS TAKING ADVANTAGE OF BROADBAND. WE ARE GOING TO SEE SOMETHING SIMILAR WITH AI. IT IS JUST ALL BUT IMPOSSIBLE TO GUESS WHICH COMPANIES ARE GOING TO BE THE WINNERS AND LOSERS. FORGET NEXT YEAR. YOU HAVE TO THINK FIVE AND 10 YEARS OUT. THAT IS INCREDIBLY CHALLENGING. THE TECHNOLOGY CHANGES SO FAST. THERE IS A REASON WHY SOME ANY PEOPLE HAVE MOVED TO INDEXING RATHER THAN GUESS WHO IS THE WINNER. ON THEM ALL, LET GOD SORT THEM OUT. CHRISTINA: SPEAKING OF TECHNOLOGY COMPANIES, WE HAVE SPACEX AND TESLA LIKELY TO MERGE. DAVID: WELL, ELON MUSK WOULD HOPE. CHRISTINA: SET TO MERGE, TRYING TO MERGE, ASPIRING TO MERGE. WHAT ARE THE ODDS OF THAT? DO YOU THINK IT IS A GOOD DECISION FOR A BIGGER CONGLOMERATE? WHAT IS YOUR TAKE ON THE FLYING CAR? DAVID: ARE YOU GOING TO BUY A ROADSTER, BARRY? BARRY: SO, THE FLYING CAR IS OBVIOUSLY A GIMMICK. CHRISTINA: SEE? DAVID GAVE ME A HARD TIME, CALLED ME A SKEPTIC. I'M WITH BARRY ON THIS ONE. BARRY: IT IS KIND OF GOOFY. THEY ARE TAKING THIS SPACEX TECHNOLOGY, AND ASSUMING THAT WAS ACTUALLY DONE AND IT WAS NOT -- IT DIDN'T LOOK LIKE THERE WERE ANY WIRES. [LAUGHTER] ALL THAT SAID, YOU LOOK AT THE ADVANTAGE TESLA HAD FIVE YEARS AGO. THEY WERE A DECADE AHEAD OF EVERYBODY ELSE. THEY HAD ENORMOUS SOFTWARE ADVANTAGES. THE OVER THE AIR UPDATES. NOBODY WAS CLOSE TO THEM. THE PROBLEM IS, THEIR VALUATION PRESUMES THEY ARE GOING TO HAVE, YOU KNOW, AN 80% EV MARKET SHARE. THAT THEY ARE FIVE TIMES THE MARKET CAP OF TOYOTA, AT THE SAME TIME THEY ARE AN EIGHTH OF TOYOTA'S PROFIT MARGIN. THE VALUATION IS OUT OF WHACK. YOU LOOK AT HOW POORLY THE COMPANY HAS DONE INTRODUCING NEW PRODUCTS, ALTHOUGH THIS IS THE YEAR WHERE IN 2027 A WHOLE LOT OF NEW TESLA PRODUCTS ARE COMING OUT. THE PROBLEM IS, THEY FAILED TO DO THIS IN A TIMELY BASIS. BYD IS TAKING OVER THE WORLD IN TERMS OF EV'S. TWICE THE DISTANCE -- TWICE THE RANGE, WILL THE HORSEPOWER, HALF THE PRICE. THE WHOLE RUN OF NEW CARS, WHICH YOU CANNOT BUY IN THE UNITED STATES, BUT BUT WHICH ARE MOVING INTO EUROPE AND CANADA ANNOUNCED A NEW DEAL WHEN THEY'RE ANGRY AT TRUMP. THE FEAR IS, ONCE YOU OPEN UP THE DOORS AND UNDERSTAND BYD HAS HUGE SUBSIDIES, FREE REAL ESTATE, SO, THE PRICE REFLECTS A GIANT SUBSIDY FROM THE GOVERNMENT, SO THERE IS LEGITIMATE CONCERNS ABOUT PRODUCT DUMPING, BUT ALL THAT SAID, IT IS HARD TO SEE HOW TESLA GROWS INTO ITS MARKET CAP, AND IF I AM A SPACEX OWNER -- AND I GUESS EVERYONE WHO IS AN INDEX OR IS -- YOU HAVE TO WORRY, IS ELON USING HIS OWN PAPER FROM ONE COMPANY TO RESCUE A COMPANY THAT IS AT RISK AT FALTERING? THIS WHOLE DALLIANCE WITH THE PRESIDENT AND WITH DOGE, IT ALIENATED HIS CORE AUDIENCE AT TESLA. YOU KNOW, MOST OF THE PEOPLE WHO WERE BUYING TESLAS WERE IN BLUE STATES AND TENDED TO LEAN LEFT OF CENTER, AND HE BASICALLY PISS ED THEM ALL OFF. THAT IS WHY TESLA SALES HAVE BEEN FALTERING. THUS, THE LOSS OF THE $7,500 CREDIT. IT HAS BEEN A LITTLE BIT OF A ROUGH ROAD THE PAST COUPLE OF YEARS. DAVID: AND A GOOD MARKET FOR BUMPER STICKERS FOR THOSE SAYING, I BOUGHT THIS BEFORE ELON WENT CRAZY. ALWAYS GREAT TO TALK TO YOU. BARRY RITHOLTZ. THIS INTO THE PODCAST WITH BARRY. -- LISTEN TO THE PODCAST WITH BARRY. THOSE TECH EARNINGS THIS WEEK, CHRISTINA. ALSO THE FED MEETING ON THE HEELS OF THAT AS WELL. AT THE END OF THE MONTH. IT SOUNDS LIKE ALL INDICATIONS ARE NOTHING IS GOING TO HAPPEN IN OCTOBER. OVERALL PREDICTIONS ARE HOLDING OUT, BUT STILL THE END OF THE YEAR. DAVID: IT DOESN'T FLY, BUT PROMISES PLENTY OF SPEED. A LOOK AT PORTIA'S NEW CAR. WE WILL TALK TO MATT MILLER AHEAD ON BLOOMBERG "THIS WEEKEND." ♪ LISA: THANK YOU FOR JOINING US LIVE ON BLOOMBERG "THIS WEEKEND." ANTHROPIC HAS PRESENTED ITS OWN DRAFT BILL TO U.S. LAWMAKERS WITH A PLAN FOR REGULATING ARTIFICIAL INTELLIGENCE SAFETY AND SECURITY. POLITICO IS REPORTING THE PROPOSAL SAYS IT COULD BLOCK THE RELEASE OF AN AI MODEL IF IT RISKS INJURING PEOPLE OR CAUSING $1 BILLION IN DAMAGES. THE AI GOING BEYOND HUMAN CONTROL OR EVEN A CYBERATTACK. A NEW HONOR FOR DAVID SOLOMON. ACCORDING TO AN ANNOUNCEMENT SHARED EXCLUSIVELY WITH AXIOS SOLOMON WILL BE THE NEXT CHAIR OF THE BUSINESS COUNCIL. IT IS AN IMITATION-ONLY GROUP OF SOME OF THE WORLD'S MOST POWERFUL CORPORATE EXECUTIVES. SOLOMON WILL SUCCEED TARGET EXECUTIVE CHAIR BRIAN CORNELL, WHO HAS LED THE ORGANIZATION SINCE 2024. STELLANTIS PLAN TO CONTINUE HIRING MORE ENGINEERS AT THE PARIS CAR SHOW. IT'S TECHNOLOGY OFFICER SAID THERE IS ROOM FOR GROWTH AND THE COMPANY WILL HIRE MULTIPLE HUNDREDS ADDITIONAL ENGINEERS THROUGHOUT EUROPE AND THE UNITED STATES. STELLANTIS HAD SHOWCASED MORE THAN 60 VEHICLES FROM EIGHT BRANDS, INCLUDING NINE CONCEPT CARS AT THE SHOW. IN SPORTS, HEAVY RAINS POSTPONED LAST NIGHT'S A LCS GAME FOUR BETWEEN THE GUARDIANS AND RAISE. IT HAS BEEN RESCHEDULED FOR TONIGHT AT PROGRESSIVE FIELD. CLEVELAND LEAVES THAT SERIES 2-1. SO, YOU HAVE TO WAIT ANOTHER DAY. DAVID: WHO ARE YOU PULLING FOR? LISA: THE YANKEES ARE OUT, IT DOESN'T MATTER. THE BREWERS BEAT THE DODGERS. [LAUGHTER] SLEPT THEM. DAVID: DO YOU FEEL GOOD ABOUT THAT? LISA: I DO FEEL VERY GOOD. DAVID: DO YOU WANT TO WEIGH IN ON THIS? SURELY YOU COULD OFFER SOMETHING HERE. CHRISTINA: I HAVE STRONG FEELINGS ABOUT ALL OF THE SPORTS BALLS. I AM HAPPY/SAD THAT YOUR TEAM WON/LOST. DAVID: THANK YOU, LISA. BASEBALL. AMERICA'S PASTIME. A GERMAN CARMAKER UNVEILED A NEW SUPERCAR THIS WEEK. THE MISSION AS FEATURES A GROUP-MOUNTED AIR INTAKE AND AN INTERIOR -- THAT IS SURPRISINGLY UNADORNED. IT IS EXPECTED TO SELL FOR MUCH MORE THAN THE PORSCHE 911. CHRISTINA: IT IS LOOKING TO BOOST ITS IS LOOKING TO BOOST ITS STRUGGLING BOTTOM LINE. BLOOMBERG'S MATT MILLER SPOKE EXCLUSIVELY WITH PORSCHE ABOUT THE CEO ABOUT HIS PLANS TO TURN AROUND THE COMPANY. >> PORSCHE IS THE STRONGEST BRAND IN THE WORLD. WHY IS THAT? BECAUSE WE HAVE ONE WEAKNESS. WE CAN DO BOTH. YOU CAN DO LUXURY CARS, THE VERY HIGHEST CARS, VERY EXCLUSIVE, AT THE SAME TIME WE CAN ALSO DELIVER TOP PREMIUM CARS IN A MORE VOLUME AND UPSCALE WAY. THAT IS A PRICE AND VOLUME POINT WHICH IS VERY NEW -- IS VERY UNIQUE. ONLY PORSCHE HAS A. YOU'RE NOT TALKING ABOUT A GENERAL PRICE INCREASE. WE WANT TO GO WITH NEW CARS AND NEW SEGMENTS, WHICH ARE HIGHER-POSITIONED. OK? BUT REGARDING THESE CARS, THEY ARE WELL-POSITIONED IN THEIR SEGMENT AND WE WANT TO INVOLVE THIS DEVELOPMENT AND THE SUCCESS OF THESE MODELS. MATT: PREVIOUSLY IT HAS BEEN COMMUNICATED YOU ARE LOOKING FOR PRICE INCREASES ACROSS THE BOARD. IS THAT NOT THE STRATEGY? >> NO, 90% ON THE TOP CUSTOMERS. MATT: THAT IS THE SCARCITY SIDE? >> ALL OF THE REST THAT IS CARS THAT HAVE A GOOD ENTRY POINT AND THEN YOU CAN GO HIGHER. BUT I THINK IT IS VERY IMPORTANT FOR US TO BRING NEW CUSTOMERS, YOUNGER CUSTOMERS INTO OUR BRAND AND THEREFORE WE NEED ALSO THE OFFER OF A 718 AND CARS THAT ALLOWS YOU TO GET ALSO INTO -- WE CALL IT THE B SEGMENT. MATT: LET ME ASK YOU ABOUT THE VOLUME BUSINESS. YOU SAID YOU ARE LOOKING TO BREAK EVEN AT LESS THAN 200,000 CARS PRODUCED. YOU PRODUCE MORE THAN 300,000 CARS A YEAR. WHERE IS THE FLOOR IN, FOR EXAMPLE, THE CHINA BUSINESS, WHICH HAS BEEN DETERIORATING? HOW LOW CAN YOU GO IN CHINA? MATT: IN CHINA WE FOUND A NICHE FOR OUR CARS AND WE WANT TO MAINTAIN THIS, BUT WE DID A RESET IN OUR PLANNING WITH OUR NEW STRATEGY. BECAUSE WE WANT TO SEE CHINA AS A CHANCE. SO, WE HAVE A NICHE. MAINLY, BY THE WAY, HYBRID CARS IN CHINA. PERFORMED VERY WELL, AND IF THERE IS A RECOVERY IN THE MARKET OR WE RENEW MODELS WE CAN DO MORE. BUT THE MARKET IS STILL A HUGE MARKET. IT IS STILL AN IMPORTANT MARKET FOR US IN PORSCHE. HE WILL NOT GIVE UP THIS MARKET AND WE EARN GOOD MONEY IN THIS MARKET. DAVID: MATT: MATT: WHAT ABOUT THE ELECTRIFICATION ISSUES YOU HAVE HAD? REPORT SO MUCH MONEY INTO THAT. THAT STARTED BEFORE YOU WERE PUT IN PLACE AS CEO AND YOU WROTE DOWN 1.8 EUROS LAST YEAR FOR THE EV BUSINESS. IS THAT THE FINAL WRITE DOWN? DO INVESTORS NO LONGER HAVE TO WORRY ABOUT THAT? MATT: I THINK -- >> I THINK WE HAVE A QUITE CLEAN TABLE RIGHT NOW. WE HAVE TO INVEST BECAUSE NOBODY KNOWS WHAT IS THE FUTURE OF TECHNOLOGY, AND I PERSONALLY BELIEVE [INDISCERNIBLE] WE HAVE TO BE PREPARED FOR EYE -- FOR HYBRID AND PREPARED ALSO FOR BETTER ELECTRIC CARS. AND WE ARE INVESTING IN NEW BATTERY TECHNOLOGY TO HAVE MORE PERFORMANCE, TO HAVE BETTER RANGE AND PREPARE THE NEXT GENERATION OF ELECTRIC CARS. MATT: YOU STARTED WITH PORSCHE. YOU SPENT 13 YEARS THERE BEFORE YOU WENT TO MCLAREN AND CAME BACK. WHAT IS DIFFERENT ABOUT THIS COMPANY THAT HAS STAYED THE SAME SINCE ITS INCEPTION? WHAT IS DIFFERENT IN YOUR EXPERIENCE? >> WE ARE IN A DEMANDING AND VOLATILE WORLD. THE REQUIREMENTS TO A COMPANY AND ORGANIZATION ARE VERY DIFFERENT. IT IS NOT THE STABLE ENVIRONMENT AND YOU CAN DEVELOP A STEP-BY-STEP. YOU HAVE TO GET AN AGILE, ADAPTABLE ORGANIZATION. THAT IS THE ACTUAL TRANSFORMATION WE HAVE TO DO. IT IS NOT ONLY ABOUT TECHNOLOGIES. TO BE HONEST, I THINK WE CAN MANAGE ALL TECHNOLOGIES, BUT TO BE SO FLEXIBLE AND ADAPTIVE, THAT IS A CHALLENGE FOR US. CHRISTINA: MATT MILLER JOINS US NOW IN-STUDIO. YOU HAD A 9/11. -- 911. IT SOUNDS LIKE THEY ARE NOT GOING AFTER THE SAME AUDIENCE. MATT: IT WILL BE A HIGHER PRICE POINT IF YOU LOOK AT THEIR COMPETITORS, FOR EXAMPLE FERRARI MAKES CARS THAT ARE SPORTS CARS WITH V-8'S. BUT THEY ALSO MAKE THE HIGHER END, THE B12, A MORE SPECIAL, MORE EXPENSIVE MODEL LINE. THIS IS ESSENTIALLY WHAT THEY ARE GOING TO DO. THEY ARE GOING TO PUT IN A MORE SPECIAL -- IT IS IN THE EYE OF THE BEHOLDER TO SOME EXTENT, MODEL LINE. THAT IS WHAT THIS CONCEPT WAS DESIGNED TO SHOW US. CHRISTINA: YOU DON'T KNOW WHAT THE ENGINE IS GOING TO BE. A COUPLE OF THINGS. ONE OF THE THINGS THAT STOOD OUT TO ME IS THAT YOU POINT OUT THERE IS NOT A LOT OF SCREENS IN THIS INTERIOR. MATT: THERE IS NO SCREEN. THAT IS THE BEST THING WE SAW IN THIS CONCEPT, RIGHT? THE CONCEPT THEY SHOWED YESTERDAY WAS THERE TO GIVE US AN IDEA OF THE DESIGN, AND THERE ARE A LOT OF CALLBACKS TO CARS. FAMOUS CARS, INCLUDING THE 9/11 IN THE FRONT, THE 959 ON THE ROOF, THE 917 WITH THE FAN IN THE REAR, THE 928 WITH THE BACK END AND WHEELS. BUT IT DOES NOT TELL US THE MOST IMPORTANT THING FOR, IN MY OPINION, ANY CAR, WHICH IS THE MOTOR. CHRISTINA: THAT'S WHAT YOU TALKED ABOUT. THERE WERE RUMORS AS TO WHAT MIGHT BE IN THIS. MATT: A GERMAN NEWSPAPER REPORTED IT WOULD BE A FLAT EIGHT. CHRISTINA: I DEFINITELY KNOW WHAT THAT IS. MATT: THE PORSCHE IS FAMOUS, THE 911 IS FAMOUS FOR ITS FLAT SIX. INSTEAD OF A V-6 OR V-8 IT HAS A FLAT ENGINE WITH SIX CYLINDERS. THE RUMORS ARE THAT THIS COULD COME WITH A FLAT EIGHT, OR AT LEAST THAT IS WHAT IT IS SPECULATING. THAT WOULD BE THE FIRST TIME A FLAT EIGHT HAS EVER BEEN PUT INTO A PRODUCTION CAR. THEY HAVE BEEN IN RACECARS. THEY HAVE BEEN IN CONCEPT MULES IN THE PAST. PORSCHE PUT ONE IN A MULE. BUT THAT WOULD BE REALLY SPECIAL. WHAT WOULD NOT BE SPECIAL IS IF THEY USED THE SAME V-8 THAT PRETTY MUCH EVERY GERMAN MANUFACTURER PUTS IN A TOP END CAR. LAMBORGHINI USES THAT DISPLACEMENT. AUDI USES THAT DISPLACEMENT. SO, I ASKED HIM AND HE SAID, IT WILL NOT BE THAT. IT WILL BE SOMETHING MORE SPECIAL THAN THAT. DAVID: GET A MANUAL, HE SAID. INTERESTING. CAN YOU DRIVE A MANUAL TRANSMISSION? CHRISTINA: MATT IS GOING TO TEACH ME. DAVID: STAY TUNED. CHRISTINA: COMING UP, WHY MORE RETAILERS ARE LEANING INTO HIGH-END SPORTS MERCHANDISE. COMING UP NEXT ON BLOOMBERG "THIS WEEKEND." ♪ LISA: WELCOME BACK TO BLOOMBERG "THIS WEEKEND." THE NBA KICKS OFF THE NEW SEASON ON TUESDAY, WITH ALL EYES ON THE NEW YORK KNICKS AS THEY TAKE ON THE 76ERS. FANS ARE GETTING GEAR READY. ESPECIALLY THE LADIES. ACCORDING TO A SPORTS INNOVATION REPORT THE ANNUAL MERCHANDISE MARKET IS EXPECTED TO BE VALUED AT $4 BILLION. ONE COMPANY LOOKING TO GET IN ON THE ACTION IS LOCATED HERE IN NEW YORK CITY. I SIT DOWN WITH THE OWNER OF TORRES TO LEARN MORE ABOUT THE MERCHANDISE MADNESS. WOMEN ARE CHANGING THE ECONOMY AND ENERGY OF THE SPORTS LANDSCAPE. ACCORDING TO NIELSEN 56% OF NEW SPORTS FANS OVER THE PAST YEARS ARE WOMEN. THEY ARE ONE OF THE FASTEST-GROWING AUDIENCES AND BRING SERIOUS BUYING POWER. >> THESE ARE WOMEN THAT HAVE SISTERS AND FRIENDS AND MOTHERS AND DAUGHTERS, AND THEY ARE NOT WHOLLY GOING TO GAMES. THEY ARE NOW STARTING TO SEE AND FEEL THAT SPORTS AND FASHION IS A CATEGORY. LISA: ONE OF A HANDFUL OF SMALL BUSINESSES LICENSED TO CREATE PROFESSIONAL SPORTS COLLECTIONS FOR WOMEN HOLDS OFFICIAL LICENSING PARTNERSHIPS WITH MORE THAN 100 TEENS ACROSS THE NFL, MLB, NBA, AND NHL, AS WELL AS A HANDFUL OF TEAMS FOR THE WNBA AND NATIONAL WOMEN'S SOCCER LEAGUE. >> THIS IS OUR GEMSTONES. WE DO THIS HIGH-QUALITY CRYSTAL THAT IS FANTASTIC. LISA: BUT SPORTS WAS NOT THE FIRST PLAY. IT BEGAN AS A LEATHER HANDBAG COMPANY IN LONG ISLAND. THE COMPANY EVOLVED INTO ACTIVEWEAR FOR WOMEN AND GIRLS AND OPENED A STORE ON THE UPPER EAST SIDE OF MANHATTAN. BUT THINGS CHANGED WHEN AN OPPORTUNITY WALKED THROUGH THE DOOR. >> I WAS ON THE FLOOR. BECAUSE I WAS ON THE FLOOR EVERY DAY SLINGING MERCHANT. THAT IS WHAT WE DO. A WOMAN CAME IN. AND SHE CHECKED OUT SHE GOES, THIS IS SUCH A PHENOMENAL STORE. AND THIS BRAND, WHAT YOU HAVE DONE, THE ENERGY IS AMAZING. SHE SAID, HAVE YOU EVER THOUGHT ABOUT WORKING WITH MAJOR LEAGUE BASEBALL? SHE SAID, NOBODY FOCUSES ON THE WOMEN. ALL THAT IS THERE AND COME YOU KNOW, OUT IN THE SHOPS AND THE STADIUMS ARE THESE V-NECK BUBBLEGUM T-SHIRTS THAT HAVE THE SCRIPT AND THE TEAM NAMES AND THEY DON'T EVEN FIT WELL. LISA: FOR THEY ARE JUST PAIN. >> PINK, BUT NOT EVEN NICE PINK, AN UGLY PINK. THEN THE NEXT DAY NOAH GARDEN AT MAJOR LEAGUE BASEBALL REACHED OUT TO ME AND HE SAID, I HEARD THAT WE NEED TO WORK. LISA: IT TURNS OUT THE WOMAN WHO CAME INTO THE STORE WAS CALLING MANFRED, THE WIFE OF MLB COMMISSIONER ROB MANFRED. >> OUR BASEBALL ZIP QUARTER ZIP IS NUMBER ONE ACROSS EVERY SINGLE TEAM. THE WHOLE IDEA OF IT WAS, WHAT DOES THE INTERSECTION OF FASHION AND SPORTS LOOK LIKE? WE WERE NOT JUST A BRAND THAT DECIDED TO GO INTO SPORTS LICENSING. LISA: HOW IS YOUR CUSTOMER CHANGING? ARE YOU WHOLESALE? >> SINCE WE FOCUS ON SPORTS AND FASHION WE DO LIKE TO GO TO OUR TRADITIONAL RETAILER. THAT IS YOUR EVOLVE, YOUR BLOOMINGDALE'S. BUT A BIG PART OF WHOLESALE IS THE TEAMS. WE ARE IN ALL OF THE STADIUMS. THE ARENAS ACROSS THE COUNTRY. BUT WHAT IS SO AMAZING IS, YOU WOULD THINK THAT THE SAME TEAM THAT DOES, YOU KNOW, GREAT IN THE STADIUM, IS WHAT IS GOING TO BE NUMBER ONE FOR OUR LINE, FOR THE NFL. OUR NUMBER ONE TEAM WE SELL ON OUR WEBSITE IS THE NEW YORK GIANTS. BUT THE STADIUM THAT PURCHASES THE MOST FROM US ARE PROBABLY THE GREEN BAY PACKERS. LISA: I SEE A GIANTS WON. I THINK I HAVE TO TRY THIS ONE ON. >> THIS IS A MIXTURE OF WOOL, LEATHER, IT IS REALLY COMFORTABLE. IT IS COOL. LISA: YOU LOOK GREAT. I'M TAKING THIS HOME. >> WHAT IS DIFFERENT THEN FASHION IS, YOU HAVE AN ENTIRE SPORTS NARRATIVE THAT IS GOING WITH IT AS WELL. THERE ARE DIFFERENT TEAMS THAT WIN THE SUPER BOWL, SO THEY THINK THEY ARE GOING TO HAVE A GREAT YEAR, AND THEN UNFORTUNATELY THEIR TEAM MEMBER, THEIR QUARTERBACK, THEY'RE RUNNING BACK GETS HURT AND THEN THEIR SEASON IS NOT GREAT ANYMORE. SO, WHAT THEY THOUGHT AND WHAT THEY BOUGHT IS NOT GOING TO SELL. LISA: AND YOU ARE DOING SOMETHING DIFFERENT. YOU ARE PARTNERING WITH THE WIVES OF PLAYERS. >> THANK YOU. THESE ARE BRILLIANT WOMEN WHO ARE DOING, YOU KNOW, PHENOMENAL THINGS THEMSELVES. WE FIRST DID IT WITH THE KNICKS. THAT IS WHEN I HAD THE OPPORTUNITY TO MEET THE WIVES AND GIRLFRIENDS OF THE PLAYERS. LISA: TALK ABOUT THE DIFFERENCE BETWEEN THE NBA CUSTOMER VERSUS THE MLB CUSTOMER VERSUS THE NHL CUSTOMER. >> THE STYLES ARE GOING TO BE DIFFERENT BUT THE FEELING AND A STATIC IT'S GOING TO BE SIMILAR. SO, THE NBA FAN, SHE IS COOLER AND SEXY AND WHEN WE ARE DEVELOPING FOR THE NFL, THAT IS A 1970'S, NOSTALGIC TYPE OF LOOK, COLOR, ZIP. BASEBALL, IT IS PURE AMERICANA. GIRL NEXT DOOR. LISA: SO, WHAT IS NEXT? >> IT IS A GOOD QUESTION. IT IS A REALLY GOOD QUESTION. WHAT'S NEXT IS, HOW DO WE CONTINUE TO TELL THIS STORY IN A SMART, THOUGHTFUL WAY? BECAUSE THIS CATEGORY IS GROWING. WHAT I DON'T WANT TO DO IS JUST PUT AS MANY LEAGUES AS POSSIBLE ON THE BRAND, BECAUSE THEN IT IS NOT GOING TO BE BUILT IN A SMART WAY. I WANT OUR CURRENT PARTNERS TO BE THE BEST THEY COULD POSSIBLY BE, THEN FROM THERE WE CAN START ADDING ON. LISA: I'M MAKING MY CHRISTMAS LIST. DAVID: HOW MUCH DOES THIS COST? LISA: A TANK TOP CAN RUN ABOUT $70. THE BIG BOMBER JACKET, $150. DAVID: THEY ARE VERY EXPENSIVE AS WELL, THOSE JACKETS. CHRISTINA: WE ARE COMING UP ON THE 9:00 A.M. HOUR. THE NEXT HOUR OF BLOOMBERG "THIS WEEKEND" STARTS NOW. DAVID: COMING UP ON BLOOMBERG "THIS WEEKEND." ANOTHER CRACK IN THE WHITE HOUSE'S RELATIONSHIP WITH KIA. PRESIDENT TRUMP HITS PAWS ON NEW SANCTIONS ON RUSSIA. CHRISTINA: MORE WORRIES ON RISING A IN -- AI SPEND AND DEBT. PUTTING PRESSURE ON ONE OF ITS BIGGEST INVESTORS. >> ALL OF THIS IS GOING TO PASS. WE ARE GOING THROUGH A NEW PLATFORM TRANSITION, BUT IT WILL NOT CHANGE THE FUNDAMENTALS. DAVID: AND PRIME PAYS IN THE WORLD OF GRAND THEFT AUTO. AND MILLIONS OF PEOPLE ARE EXPECTED TO PAY FOR THE LATEST VERSION OF THE GAME. >> ANALYSTS ESTIMATE IT WILL SELL SOMETHING LIKE 40 MILLION COPIES IN ITS FIRST FEW MONTHS ON SALE AND THAT WOULD GENERATE MORE THAN $3 BILLION IN REVENUE. DAVID: BLOOMBERG GOES INSIDE THE MAKING OF "GTA 6," WHICH IS EXPECTED TO BE THE BIGGEST BLOCKBUSTER OF ALL TIME. DAVID: WELCOME TO BLOOMBERG "THIS WEEKEND." I'M DAVID GURA. CHRISTINA: I'M CHRISTINA RUFFINI. WE ARE HERE WITH LISA MATEO. IT IS OCTOBER 17. WE ARE GOING TO FOCUS THIS MORNING ON OUR NEIGHBOR TO THE NORTH. WE ARE GOING TO BE TALKING TO OUR COLLEAGUE WHO KNOWS BEST ABOUT THE SECURITY RELATIONSHIP AND WHERE THE U.S. STANDS ON THE GEOPOLITICAL STAGE. DAVID: WE ARE LUCKY TO HAVE HERE. SHE WAS CANADA'S DEPUTY PRIME MINISTER. YOU'RE GOING TO TALK A LITTLE BIT ABOUT UKRAINE AS WELL. SHE WAS WORKING WITH PRESIDENT ZELENSKYY AND HIS GOVERNMENT. CHRISTINA: ZELENSKYY IS SPEAKING TO REPORTERS ON OUR TELEGRAM CHANNEL AT THE MOMENT. DAVID: GETTING UPDATES ABOUT THAT STARLINK PRODUCT AND NOTING THAT SPEED IMPLEMENT -- IMPEDIMENTS. A LOT TO TALK ABOUT THERE WITH CHRYSTIA FREELAND. BUT FIRST, LET'S GET A CHECK OF THE HEADLINES. LISA: WE ARE LEARNING MORE DETAILS ABOUT THE GUNMAN WHO KILLED THREE CHILDREN AND A TEACHER AT SILVER RAIL ELEMENTARY IN END, ORGAN, AS WELL AS THE PEOPLE WHO CONFRONTED HIM. THAT SHOOTER WAS A 16-YEAR-OLD FORMER SPECIAL NEEDS STUDENT. POLICE SAY HE JUMPED A FENCE WITH A SHOTGUN AND A BACKPACK FULL OF AMMUNITION. THE SHOOTER BLASTED HIS WAY THROUGH THE SCHOOL'S LOCKED DOORS, THEN OPENED FIRE ON A SPECIAL EDUCATION CLASSROOM. THE POLICE CHIEF DESCRIBE WHAT HAPPENED NEXT. >> THE TEACHER IN THE CLASSROOM THROUGH HER CELL PHONE AT THE SUSPECT AND THEN TACKLED HIM. SHE WAS NOT INJURED IN THAT INCIDENT BUT SHE ALMOST CERTAINLY HELP PREVENT MORE BLOODSHED. LISA: ANOTHER HERO, A PARENT WHOSE SOUL WAS HAPPENING FOLLOWED THE GUNMAN INSIDE AND SHOT HIM MULTIPLE TIMES. STILL NO WORD ON A MOTIVE. LAST NIGHT A CANDLELIGHT VIGIL WAS HELD BY AN ACTIVIST GROUP TO HELP THE COMMUNITY MORE IN LOSSES. ORGANIZERS SAY THE INTENTION WAS TO BRING THE GRIEVING COMMUNITY TOGETHER AND OFFER SOME HOPE. >> WE JUST THOUGHT IT WAS APPROPRIATE FOR THE COMMUNITY TO HAVE AN INCLUSIVE SPACE WHERE THEY CAN FIND COMMUNITY AND MORE IN TOGETHER. FIND A LITTLE HOPE, GETTING THROUGH THIS TOGETHER. LISA: AFTER LESS THAN A WEEK AS WHITE HOUSE PRESS SECRETARY KATIE ZACHARIA IS LEAVING THE POSITION. IT IS UNCLEAR IF SHE WILL TAKE ON ANOTHER ROLE. NEWS COMES AFTER ZACHARIAH'S FIRST AND ONLY PRESS BRIEFING WAS WIDELY CRITICIZED AND SHE FACED QUESTIONS ABOUT WHETHER SHE MISREPRESENTED HERSELF AS A LAWYER. BEFORE BOARDING MARINE ONE FOR A TRIP TO DALTON, GEORGIA PRESIDENT TRUMP TOLD REPORTERS HE ENCOURAGED ZACHARIAH TO RECONSIDER HER POSITION. PRES. TRUMP: I SAID, KATIE, DO YOU NEED THIS? I DON'T THINK YOU NEED THIS. WE ARE TALKING ABOUT DOING SOMETHING. WE LIKE KATIE A LOT. SHE HAS BEEN TREATED UNFAIRLY. LISA: IN A POST-ZACHARIAH CALLED TRUMP A KIND, WONDERFUL, AND HARD-WORKING MAN, SAYING IT WAS AN HONOR TO WORK FOR HIM. EVACUATIONS ARE UNDERWAY FOR THOUSANDS OF RESIDENTS IN SOUTHERN CALIFORNIA FROM A NUMBER OF WILDFIRES FUELED BY HIGH WINDS. SEVERAL HOMES HAVE BEEN BURNED IN ORANGE COUNTY. THE FIRE STARTED IN THE COASTAL CITY OF SAN CLEMENTE. NO WORD ON HOW THAT BEGAN. HURRICANE TRUDY CONTINUES TO MOVE TOWARD SOUTHWESTERN AND WEST CENTRAL AREAS OF MEXICO'S PACIFIC COAST. NATIONAL HURRICANE CENTER SAYS THE STORM HAS MAXIMUM SUSTAINED WINDS OF 90 MILES AN HOUR. DAVID AND CHRISTINA, WE WILL SEND IT OVER TO YOU. CHRISTINA: THIS WEEK THERE IS A REFERENDUM IN ALBERTA, CANADA BUT COULD DETERMINE WHETHER WE WILL CONTINUE TO SAY ALBERTA, CANADA OR WHETHER IT WILL BE ALBERTA. THE PROVINCE'S PREMIER CALLED FOR THE INDEPENDENCE REFERENDUM THIS YEAR. DAVID: OUR NEXT GUEST WAS BORN IN PETE'S RIVER AND GREW UP IN EDMONTON. AFTER A CAREER IN JOURNALISM AND POLITICS THAT TOOK HER AROUND THE WORLD SHE BECAME CANADA'S FOREIGN MINISTER, FINANCE MINISTER, DEPUTY PRIME MINISTER. CHRYSTIA FREELAND HAS WRITTEN A BOOK ABOUT THAT CALLED "UNRELIABLE BOYFRIEND." IN THE RUNNING FOR BOOK TITLE OF THE YEAR. CHRISTINA: MY BOOK TITLE WOULD BE MUCH LESS SOPHISTICATED AND SMART. BUT IT IS AN EXCELLENT READ. CHRYSTIA: I'M GLAD YOU LIKE IT. DAVID: LET'S START WITH ALBERTA, WHERE YOU GREW UP. AND YOUR INSIGHT INTO WHY THIS REFERENDUM IS HAPPENING NOW. CHRYSTIA: I THINK MAYBE IT IS A WAY FOR NON-CANADIANS TO THINK ABOUT THE REFERENDUM IS DAVID CAMERON'S DECISION TO HOLD THE BREXIT VOTE. I THINK THIS HAS BEEN ABOUT THE PREMIER OF ALBERTA TRYING TO MANAGE A PART OF HER OWN PARTY THAT SHE DOESN'T NECESSARILY AGREE WITH BUT SHE KNOWS THEY COULD TAKE HER DOWN. I THINK AS WITH THE BREXIT VOTE, IT IS A LITTLE BIT OF ONCE YOU LET THE GENII OUT OF THE BOTTLE YOU DON'T CONTROL THE GENII ANYMORE. AND IT LOOKS LIKE THIS IS GOING TO BE QUITE CHALLENGING FOR HER. WHEN IT COMES TO ALBERTA AND CANADA, I AM MORE OPTIMISTIC, AND I DO WANT TO GIVE KUDOS TO MARK CARNEY. DAVID: ALSO AN ALBERTAN, WE SHOULD SAY. CHRYSTIA: WE BOTH DESCRIBES OR -- DESCRIBE OURSELVES AS HAVING GROWN UP IN ALBERTA. WE DON'T LIVE THERE AND IT IS IMPORTANT NOT TO CLAIM SOMETHING YOU DON'T HAVE. I WAS BORN IN ALBERTA, HE WAS BORN IN THE NORTHWEST TERRITORIES. WE ARE PROUD OF GROWING UP IN ALBERTA. WE WENT TO PUBLIC SCHOOLS. WE STUDIED THAT SYSTEM. CHARTER SCHOOLS WITHIN A PUBLIC SYSTEM. BUT MARK NOW IS IN ALBERTA, CAMPAIGNING. HE IS EXTREMELY POPULAR AND HE HAS TAKEN UP THE SLOGAN OF THE PRO-CANADA CAMPAIGN. THAT SLOGAN IS, NOTE TO THE NINTH -- NO TO THE NINE. VOTE NO ON ALL NINE QUESTIONS. I'M CAUTIOUSLY OPTIMISTIC WE ARE GOING TO SEE ACTUALLY FROM THIS REFERENDUM A STRONG ENDORSEMENT FROM ALBERTANS OF CANADA IS STRONGER WITH ALBERTA AND ALBERTA IS STRONGER WITH CANADA. AND I DO HOPE PRESIDENT ZELENSKYY CONTINUES TO HIT SOME OF THOSE RUSSIAN DATA CENTERS, BECAUSE THE FEWER RUSSIAN BOTS WE HAVE INVOLVED THE BETTER IT IS GOING TO BE FOR ALBERTA, CANADA, AND THE WORLD. CHRISTINA: WE WANT TO COME BACK TO PRESIDENT ZELENSKYY. HE IS MAKING SOME HEADLINES THIS MONEY. I WANT TO STICK WITH THIS REFERENDUM. HOW IMPORTANT IS THE TRUMP FACTOR? WE HAVE SEEN IN OTHER PLACES THE SUDDEN URGE TO GO BACK TO SOLIDARITY, GO BACK TO THESE BIGGER BLOCKS BECAUSE IF YOU GET IN THE PLACE OF HAVING TO NEGOTIATE WITH THE UNITED STATES ON POLICY THERE IS SAFETY IN NUMBERS. CHRYSTIA: TOTALLY CORRECT, AND NOT JUST SAFETY IN NUMBERS, BUT PRESIDENT TRUMP HAS MADE CANADIANS MORE PATRIOTIC. JEAN SAID MEMORABLY IN EARLY 2025, YOU KNOW, WE SHOULD GIVE PRESIDENT TRUMP THE ORDER OF CANADA. HE SAID, WE SHOULD DO IT BECAUSE HE HAS REMINDED US HOW PROUD WE SHOULD BE TO BE CANADIAN. I THINK THAT IS DEFINITELY A FACTOR. THE ONE THING I WILL MENTION IS THE SLOGAN IS NO TILDE NINE. IF I WERE A RESIDENT I WOULD BE VOTING NO TILDE NINE. IT IS BECAUSE A BUNCH OF QUESTIONS HAVE BEEN PUT IN THERE TO MUDDY THE WATERS AROUND IMMIGRATION. AND THOSE ALSO ARE REALLY DANGEROUS. CANADA HAS MANAGED, I WOULD SAY PROBABLY MORE THAN ANY WESTERN INDUSTRIALIZED COUNTRY, MAY BE APART FROM SPAIN, TO STILL BE PROUD OF BEING MULTICULTURAL AND NOT HAVE THAT POLARIZATION. THIS REFERENDUM A LITTLE BIT IS TRYING TO GET PEOPLE TO GET MAD AT IMMIGRANTS. I THINK THAT IS WRONG AND REALLY DANGEROUS AND DIVISIVE. DAVID: LET'S TALK ABOUT THE CENTRAL METAPHOR OF THE BOOK, THE UNRELIABLE BOYFRIEND. THAT IS THE UNITED STATES. WE HAVE HEARD FROM THE PRIME MINISTER ABOUT MIDDLE POWERS COMING TOGETHER. PERHAPS WHAT HE AND YOU ARE SUGGESTING IS THERE NEEDS TO BE SOME KIND OF GEOPOLITICAL POLYAMORY. [LAUGHTER] CHRISTINA: DAVID GURA! DAVID: BUT YOU POINT OUT A CLEAN BREAK UP WITH THE U.S. IS DIFFICULT BECAUSE OF THE OUTSIZED ROLE IT PLAYS IN THE GLOBAL ECONOMY. TALK ABOUT THAT. IF CANADA WERE TO MOVE ON TO THE EXTENT IT COULD, IT IS THE IDEAL SITUATIONSHIP IT IS LOOKING FOR? DO YOU LIKE MY METAPHORS? CHRYSTIA: YES, I WOULD SAY THINK YOU FOR RUNNING WITH THE METAPHOR. PART OF THE REASON I CHOSE A PLAYFUL TITLE FOR THE BOOK IS, I THINK GEOPOLITICS AND TRADE POLICY HAVE BECOME TOO IMPORTANT TO BE LEFT TO THE EXPERTS. AND A LOT OF THE BOOK IS ACTUALLY A ROADMAP FOR WHAT SHOULD BE THE NEW TRADE POLICY FOR MULTILATERAL INSTITUTIONS, FOR THE WORLD. PRETTY TECHNICAL, RIGHT? I READ ABOUT THE INVESTOR DISPUTE SETTLEMENT ABOUT CHOKEPOINTS IN SUPPLY CHAINS, BUT THIS IS SOMETHING REGULAR PEOPLE HAVE TO GET ENGAGED IN. I WOULD SAY I HAVE KIND OF A TWO-PART MESSAGE. PART ONE IS TOUGH LOVE. I THINK IT IS REALLY IMPORTANT FOR THE WORLD TO BE CLEAR WITH AMERICA AND AMERICANS THAT -- ABOUT HOW YOUR GOVERNMENT IS BEHAVING RIGHT NOW IS UNACCEPTABLE TO US. AND I WOULD INCLUDE UKRAINE, AND WHAT I AM ABOUT TO SAY MIGHT BE PAINFUL FOR PEOPLE TO HEAR, BUT AMERICANS HAVE TO UNDERSTAND, YOUR GOVERNMENT IS BETRAYING WHEN I WOULD CONSIDER TO BE YOUR HIGHEST IDEALS. YOUR GOVERNMENT IS SIDING WITH VLADIMIR PUTIN, WHO IS A BLOODTHIRSTY DICTATOR AND WAR CRIMINAL AND ACTIVELY HURTING UKRAINE, WHICH IS A DEMOCRACY JUST FIGHTING TO BE INDEPENDENT AND ACTUALLY IS PROTECTING NATO COUNTRIES WITH THAT FIGHT. IT IS EXPLICIT AND NOT, LIKE, EVEN FOR ME IT FEELS UNCOMFORTABLE TO SAY THAT, BUT IT IS REALLY TRUE AND THERE WAS A LETTER, A BIPARTISAN GROUP OF SENATORS SIGNED. SIX REPUBLICANS, AND THEY SAID, FOR DECADES AMERICANS THAT AMERICA HAS STOOD AS THE BASTION OF FREEDOM AGAINST TYRANNY AND AMERICAN PRESIDENTS HAVE EMBODIED OUR NATION'S RESISTANCE TO TYRANTS. PUTIN IS A TYRANT. I THINK AMERICANS HAVE TO RECOGNIZE, THIS IS WHERE WE ARE IN THE WORLD NOW. BUT THERE IS SOMETHING QUITE STIRRING IN THAT LETTER AND THAT IS KIND OF THE SECOND PART OF MY MESSAGE. I CONCLUDE ON A MESSAGE OF HOPE. I THINK THE BEST OUTCOME FOR AMERICA AND THE WORLD -- CERTAINLY THE WORLD'S DEMOCRACIES -- IF YOU GUYS CAN START BEING RELIABLE AGAIN. AND IF WE CAN REBUILD THE WESTERN ALLIANCE. I THINK, YOU KNOW, WHATEVER AMERICA CHOOSES WE ARE GOING TO KEEP GOING BEING LIBERAL DEMOCRACIES. WE ARE GOING TO KEEP FIGHTING, BUT IT WOULD BE A LOT BETTER IF YOU JOINED US, AND REJOINED US. THE WORLD'S DICTATORS ARE ON THE MARCH. RUSSIA IS ON THE MARCH. CHINA IS ON THE MARCH AND IS BACKING RUSSIA. IT IS NOT A TIME FOR US TO BE DIVIDED AND IT IS CERTAINLY NOT A TIME FOR AMERICA TO BE ON THE SIDE OF THE BAD GUYS, WHICH I'M SORRY TO SAY, YOU ARE RIGHT NOW. CHRISTINA: WE ALSO HAD SOME NEWS OVERNIGHT AND THIS MORNING THAT THE PRESIDENT HAS WAIVED SANCTIONS ON A BILL HE SIGNED AND THEY'RE ALL KINDS OF QUESTIONS KNOW ABOUT, OK, EVEN IF THE U.S. DOES DO THIS DEAL WHERE THEY ARE BUYING U.S. DIESEL, WE WERE TALKING TO ONE OF OUR COLLEAGUES, THEY ARE NOT EVEN ON THE SWIFT BANKING SYSTEM. THEY MAY HAVE TO DO FURTHER LEGISLATION TO PAY FOR THE DIESEL. WHAT IS THE WAVING OF THAT SANCTIONS? IS THIS A BIG MOMENT, THE FACT THE WHITE HOUSE IS TAKING NOW? WHAT DOES THAT SAY TO YOU ABOUT EVERYTHING YOU ARE TALKING ABOUT AND THE POSITION IT PUTS PRESIDENT ZELENSKYY IN? CHRISTINA: EXACTLY RIGHT. ON THE SWIFT BANKING SYSTEM, LET'S REMEMBER, THAT WAS A U.S.-INITIATED MOVE TO CUT RUSSIA OFF THE SWISS -- SWIFT BANKING SYSTEM. WE HAD G7 FINANCE MINISTERS MEETINGS. THE U.S. WAS VERY FORCEFUL. IT WAS THE RIGHT THING TO DO. SO, THE UNITED STATES IS ROLLING BACK MEASURES THAT IT COULD IN PLACE, AND UNITED STATES IS ON THE SIDE OF A DICTATOR. SO, I THINK THE ECONOMIC EFFECT COULD BE SIGNIFICANT, EVEN MORE SIGNIFICANT IS WHAT THAT SAYS ABOUT WHO'S INSIDE THE UNITED STATES IS ON. EVEN MORE SIGNIFICANT IS WHAT THE UNITED STATES IS DOING ON THE BATTLEFIELD IN TERMS OF ACCESS TO STARLINK AND STARSHIP. I WOULD OFFER ALSO A CAUTIONARY THOUGHT TO THE U.S. DEFENSE INDUSTRY. WHICH IS, WHAT ALL OF AMERICA'S ALLIES ARE SEEING RIGHT NOW IS A COUNTRY LIKE UKRAINE, WHICH IS AT WAR CANNOT RELY ON U.S.-SUPPLIED TECHNOLOGY. WHAT DO YOU THINK THAT IS GOING TO MEAN THE NEXT TIME THE LEADER OF A DEMOCRACY DECIDES WHICH AIRPLANE TO BUY? DO YOU THINK HE OR SHE IS GOING TO ORDER AN F 35, WHERE THE TECHNOLOGY IS CONTROLLED BY THE U.S.? SEEMS LIKE A RISKY DECISION. SO, AMERICANS HAVE TO REALIZE, THIS IS NOT JUST ABOUT UKRAINE. THIS IS ALSO ABOUT EVERYONE WATCHING. THAT YOU ARE AN UNRELIABLE BOYFRIEND. LIKE, REALLY UNRELIABLE. DAVID: LET ME BRING IT BACK HERE TO THAT AND YOU WRITE A LOT ABOUT YOUR UPBRINGING AND TIME AS A JOURNALIST WRITING FOR THE FINANCIAL TIMES. I SAW THE LATEST COLUMN BY ED LUCE, YOUR COLLEAGUE. HE SAID, THERE IS NO SCIENTIFIC OPTIMAL POINT OF -- TRUMP'S MOVE IS TOO WILD TO BE PREDICTABLE. YOU HAVE BEEN THERE. YOU HAVE FACED AT THAT. I WONDER FROM THAT EXPERIENCE WHAT YOU HAVE TOLD OR WHAT YOU WOULD TELL PRESIDENT ZELENSKYY IN THIS MOMENT? THAT IS, SPEAKING THE TRUTH OR STANDING UP FOR ONE'S BELIEFS IN THE FACE OF PRESIDENT TRUMP DOING SOMETHING LIKE HE HAS DONE OVER THE LAST WEEK? CHRYSTIA: I THINK ED MAKE'S A GOOD POINT, BUT THE CONCLUSION YOU SHOULD DRAW IS TO BE STEADY AND SURE IN YOURSELF. IN YOURSELF AND THE POSITION YOU TAKE FOR YOUR COUNTRY. IN MY BOOK I TALK ABOUT HOW WE ACTUALLY GOT A TRADE DEAL WITH PRESIDENT TRUMP. THAT STORY HAD A HAPPY ENDING AND THAT IS WORTH REMINDING PEOPLE, THAT WE WERE ABLE TO ACTUALLY ACHIEVE A TRADE DEAL THAT PRESIDENT TRUMP SIGNED. I WAS STANDING THERE BEHIND HIM IN ARGENTINA AND HE DESCRIBED AS THE BEST TRADE DEAL EVER. HOW DO YOU DO IT? THERE IS A THREE-PARK LANE. ONE, AGREE WAY YOU CAN AGREE. AND I THINK WHERE WE SHOULD ALL BE ABLE TO AGREE IS COLLECTIVE ACTION OF THE DEMOCRACIES ON CHINA AND RUSSIA IN EVERYONE'S INTERESTS. TWO, WE CALL THIS THE DOUGHNUT STRATEGY. OUR IDEA WAS, THE PRESIDENT IS AN IMPORTANT GUY, BUT AMERICA IS A HUGE COUNTRY AND AMERICANS ARE BASICALLY GREAT PEOPLE AND THEY LIKE CANADA. SO, WE WORKED HARD TO TALK TO AMERICANS DURING BUT OUR FINAL POINT WAS, DO NOT CAPITULATE. OUR MOTTO WAS, WE DO NOT ESCALATE AND WE DO NOT BACK DOWN. I THINK EFFORTS TO APPEASE PRESIDENT TRUMP -- WHICH A LOT OF PEOPLE HAVE COUNSELED -- THEY'RE LIKE, GIVE HIM A BIG GOLD MEDAL OR SOMETHING. CHRISTINA: LEADERS HAVE GONE BACK AND FORTH. WE HEARD ANDY BURNHAM SAY IT IS HIS JOB TO BRING ALLIANCES TOGETHER. CHRISTINA: I THINK THAT HIS MISTAKE. I DON’'T THINK YOU GRATUITOUSLY INSULT OR CRITICIZE, BUT YOU HAVE TO BE STEADY AND CLEAR. IF YOU HIT MY COUNTRY, YOU WILL RETALIATE. CHRISTINA: GREAT TO SEE YOU. NEW BOOK IS "UNRELIABLE BOYFRIEND." MESSAGES, HOPE THAT PEOPLE CAN CHANGE. CHRISTINA: BUYER YOU BOTH LOOKING AT ME WHEN YOU SAY THAT? WAIT A MINUTE. I FEEL LIKE THIS IS GONE PAST THE POLITICS. THANK YOU SO MUCH. COMING UP, HEALTH CARE IS AMONG THE INDUSTRY HIT BY RISING COSTS. THAT IS TRICKLING DOWN TO CONSUMERS. THE CEO OF NORTHWELL HEALTH JOINS US LIVE IN STUDIO. THAT IS STRAIGHT AHEAD ON BLOOMBERG "THIS WEEKEND." ♪ DAVID: I'M DAVID GURA WITH LISA MATEO. HEALTH CARE IS ONE OF THE BIGGEST AND MOST EXPENSIVE SECTORS OF THE U.S. ECONOMY. PATIENTS ARE STRUGGLING WITH AFFORDABILITY, HOSPITALS UNDER CASH ARE UNDER FINANCIAL PRESSURE, AND ACCESS REMAINS A CHALLENGE. LISA: JOINING US NOW IS DR. JON D'ANGELO. HE IS THE CEO OF NORTHWELL HEALTH. WELCOME TO THE STUDIO. >> THANKS FOR HAVING ME. LISA: DAVID SET IT UP NICELY. I WANT TO START BROAD STROKE HERE. IS THE TRADITIONAL HEALTH-CARE MODEL, DO YOU THINK IT IS SUSTAINABLE? IF NOT, WHAT DOES A RESTRUCTURING LOOK LIKE? >>>> I THINK THE SHORT ANSWER IS, NO, IT IS NOT SUSTAINABLE. WE HAVE AN AFFORDABILITY CORY'S DEBT CRISIS IS AFFECTING ALL STAKEHOLDERS. WE NEED TO ADDRESS THAT CHALLENGE HOLISTICALLY WITHOUT BREAKING THE THINGS YOU ALSO ALLUDED TO IN THE OPENING, WITHOUT BREAKING ACCESS OR QUALITY OR OUTCOMES. WE NEED A PATIENT-CENTERED, PATIENT-FOCUSED ROAD TO AFFORDABILITY. CHIME VERY DETERMINED TO HELP GUIDE. DAVID: I JUST HAD MY ANNUAL PHYSICAL. WE TALKED A LOT ABOUT THE CHALLENGES OF GETTING YOUR PRIMARY CARE PHYSICIANS. SOME THING HE SAYS, THERE IS A LOT OF TALK AT THE HIGH LEVEL. PEOPLE OPINING ABOUT WHAT NEEDS TO CHANGE. YOU ARE A DOCTOR BY TRAINING AND I WONDER HOW THAT HAS INFLUENCED THE WAY YOU LOOK AT WHAT WE HAVE BEEN TALKING ABOUT HERE. ISSUES OF AFFORDABILITY AND ACCESS AND THE WAY HEALTH CARE COULD CHANGE AT A FUNDAMENTAL LEVEL? JOHN: BEING A PHYSICIAN CEO IS POWERFUL. I STARTED IN THE FRONT LINES OF EMERGENCY MEDICINE, WORKED DECADES AT THE BEDSIDE. AND PROGRESSED THROUGH LEADERSHIP, AND IT MAYBE SOUNDS OVERLY-SIMPLISTIC, BUT SOMETHING I HAVE HELD AS PART OF THE CORE PHILOSOPHY FROM DAY ONE IS, TWO SIMPLE RULES. WHAT IS BEST FOR THE PATIENT. RULE TWO, DO WHAT IS BEST FOR THE PEOPLE TAKING CARE OF THE PATIENTS. AS SIMPLE AS IT SOUNDS I FIND IF YOU COME TO THOSE PRINCIPLES IN YOUR DECISION-MAKING AS A HEALTH CARE LEADER, I THINK IN THE GLOBAL CONVERSATION ABOUT AFFORDABILITY, YOU CAN LAND AT THE RIGHT SOLUTIONS. THE POLITICAL NATURE OF IT AND THE SIMPLE SOUNDBITE SOLUTIONS YOU HEAR ABOUT, I DON'T THINK ARE GOING TO SOLVE THIS VERY COMPLEX PROBLEM. LISA: HOW DO YOU DO THAT WITHOUT COMPROMISING THE QUALITY OF CARE? JOHN: YOU HAVE TO KEEP IN MIND THAT IN THIS COUNTRY WE HAVE A CHRONIC DISEASE EPIDEMIC. WE HAVE HAD DOUBLING AND TRIPLING OF DIABETES, HYPERTENSION, OBESITY. THINGS THAT ULTIMATELY ARE WHAT DRIVES UP THE COST OF CARE. AND, YOU KNOW, WE ARE IN A SYSTEM WHERE WE ARE CURRENTLY, PREDOMINANTLY REIMBURSED. HOW MANY HIGH-MARGIN, PROCEDURAL, HIGH-ACUITY PATIENTS CAN YOU PUT THROUGH A HOSPITAL? THAT IS WHAT WE GET PAID FOR, FROM MANAGING ILLNESS AND INJURY. WHERE THE REAL PATH FORWARD HAS TO FOCUS ON THE FACTORS THAT REALLY, THE 80% THAT DRIVES THE HEALTH OUTCOMES, WHICH IS, YOU KNOW, LIFE CHOICES AND CIRCUMSTANCES PEOPLE FIND THEMSELVES IN. THAT IS HOW YOU REALLY ATTACK AFFORDABILITY. WE'VE GOT TO FOCUS ON CHRONIC DISEASE AND, YOU KNOW, TO PUT IT INTO PERSPECTIVE I THINK THE KEY TO AFFORDABILITY IS WELLNESS AND, HOW DO WE CREATE A MODEL WHERE WE ARE AS FOCUSED AND IS COMMITTED TO WELLNESS AND PREVENTION AS WE ARE ON ILLNESS AND INJURY? DAVID: HOW DIFFICULT IS IT TO BE A NONPROFIT HOSPITAL SYSTEM IN THIS ENVIRONMENT? WE HAVE HEARD ABOUT THE ROLE OF PRIVATE EQUITY IN MEDICINE. YOU ARE IMMUNE FROM THAT, BUT HOW IS IT TO COMPETE AGAINST THAT AND BE A NONPROFIT PLAYER IN THIS SPHERE? JOHN: I DON'T THINK PEOPLE UNDERSTAND HOW DIFFICULT IT IS. TO YOU AN EXAMPLE, 60% OF THE NONPROFIT HOSPITALS IN NEW YORK STATE ARE IN THE RED. THE AVERAGE MARGIN ACROSS THE NONPROFITS ACROSS THE STATE ARE CLOSE TO 0%. SO, YOU ARE LITERALLY THREADING A NEEDLE TO NOT -- YOU DON'T WANT TO ABANDON YOUR MISSION. WE ARE FOCUSED ON OUR MISSION THAT DOESN'T DRIVE ANY PROFITS. WE ARE OUT THERE ADDRESSING THE BEHAVIORAL HEALTH CRISIS, HOMELESSNESS, AND OTHER THINGS WE ARE DEDICATED TO DOING BECAUSE THAT IS WHAT DRIVES OVERALL HEALTH. SUBSTANCE USE DISORDER, GUN VIOLENCE, THINGS OF THAT NATURE. YOU WANT TO CONTINUE TO DO THOSE THINGS AND, AGAIN, THE THINGS THAT KEEP YOUR -- THE WAY YOU SURVIVE IS THE HIGH-MARGIN-HIGH ACUITY STUFF. UNFORTUNATELY, THE ECONOMICS ARE AGAINST US IN EVERY ANGLE. 70% -- 60% TO 70% OF MOST HOSPITALS IN THE STATE OR GOVERNMENT-PAID, MEDICAID AND MEDICARE. MEDICAID YOU MAKE $.70 ON THE DOLLAR. DOESN'T COVER YOUR COST OF CARE. SO, YOU ARE LOSING MONEY WITH 70% OF THE PEOPLE THAT WALK THROUGH YOUR DOOR. IN WHICH CASE THE 30% THAT HAVE COMMERCIAL INSURANCE OR WHERE YOU HAVE TO MAKE THAT UP JUST TO MAINTAIN THAT 0% MARGIN. THE DYNAMICS ARE CHALLENGING. IT IS ONLY GETTING TOUGHER. HAVE AN AGING POPULATION ON TOP OF THAT CHRONIC DISEASE EPIDEMIC. WE HAVE WORKFORCE SHORTAGES. PUT THAT TOGETHER AND I JOKE AROUND THAT IS WHY THEY HIRED A DOCTOR. [LAUGHTER] LISA: YOU MENTIONED THE SHORTAGE. I REMEMBER DURING COVERT, AFTER COVID WE STARTED HEARING A LOT, WE NEED NURSES, WE NEED THESE DIFFERENT THINGS. HOW DOES THE PICTURE LOOK NOW AS FAR AS STAFFING AT THE HOSPITALS NOW? WHAT ARE YOU DOING TO IMPROVE THAT? IT JOHN: VARIES IN DIFFERENT PARTS OF OUR GEOGRAPHY. WE SPREAD ALL THE WAY OUT TO LONG ISLAND AND NEW YORK CITY AND THROUGH HUDSON VALLEY AND CONNECTICUT. WE ARE A BIG ORGANIZATION AND IT IS DIFFERENT IN THE DIFFERENT GEOGRAPHIES, BUT OVERALL THE INDUSTRY IS SUFFERING FROM SHORTAGES AND THERE IS PROJECTIONS THAT WE WILL PROBABLY BE 300 TO 400,000 FEWER NURSES IN THIS COUNTRY THEN WE NEED TO MEET THE DEMANDS. THE DEMANDS OF THE AGING POPULATION, AND THAT IS THE POPULATION THAT HAS THIS BIGGER BURDEN OF CHRONIC DISEASE AND ACUTE CARE NEEDS. SO, YOU HAVE TO BE REAL INTENTIONAL AND FROM MY PERSPECTIVE IT IS ALMOST A THREE-PRONGED APPROACH WHEN IT COMES TO THE WORKFORCE. WHAT ARE YOU DOING TO MAINTAIN THE WORKFORCE YOU HAVE, HOW DO YOU AMPLIFY THE CAPABILITIES OF THE WORKFORCE YOU HAVE? AND HOW DO YOU DEVELOP -- HOW DO YOU BUILD, YOU KNOW, BUILD THAT PIPELINE? RETENTION IS STRICTLY, YOU KEEP PEOPLE FOCUSED ON OUR PURPOSE. NONE OF US WENT INTO HEALTH CARE, YOU KNOW, WE ALL WENT INTO HEALTH CARE FOR PURPOSE. HOW DO WE CONTRIBUTE? HOW DO WE HELP COMMUNITIES? SO, OUR WORKFORCE WORKS INCREDIBLY HARD. IT IS CHALLENGING AND YOU'VE GOT TO KEEP PEOPLE FOCUSED ON THAT. THEN YOU HAVE TO GIVE BACK TO THEM AND FOCUS ON THEIR WELLNESS AND CAREER DEVELOPMENT. THAT IS THE PIPELINE PIECE TOO. IN ADDITION TO THEIR WELLNESS, THEIR CAREER DEVELOPMENT OPPORTUNITIES, LIKE MYSELF, I STARTED AS A NAVY DOCTOR. NORTHWELL HAS INVESTED IN ME OVER 26 YEARS AND SO FORTH. THE SECOND PART IS BUILDING PIPELINE. WE HAVE TO BE INNOVATIVE IN THAT REGARD. WE HAVE TO NOT ONLY THINK ABOUT THE CURRENT ROLES AND NEEDS -- NEEDS, BUT WHAT ARE THEIR NEEDS FOR THE FUTURE? I WILL GIVE YOU TWO QUICK EXAMPLES. ONE IS, INTERNALLY WE HAVE A CORPORATE UNIVERSITY. THERE IS A SHORTAGE OF ULTRASOUND TECHS IN THE MARKET. WE CREATED A SCHOOL INTERNALLY AND 20 OF OUR EMPLOYEES EVERY NINE OR 12 MONTHS THEY CAN RAISE THEIR HAND. THEY CAN BE FROM THE DIETARY, FRONT DESK, WHEREVER, AND WE GRADUATE THEM AS ULTRASOUND TAX. AND WE PUT THEM INTO ROLES. INTERNALLY WE HAVE A LOT OF PIPELINE PROGRAMS LIKE THAT. THEN THE TRADITIONAL THINGS ARE NURSING SCHOOL OR GRADUATE PROGRAMS. PARTNERING WITH BLOOMBERG PHILANTHROPIES AND THE NEW YORK CITY SCHOOL SYSTEMS WE OPEN LAST YEAR THE SCHOOL OF HEALTH SCIENCES, WHICH IS A HIGH SCHOOL IN QUEENS. NINTH AND 10TH GRADERS NOW. HIGHEST GRADES IN THE NEW YORK CITY SCHOOL SYSTEM AND THEY ARE GETTING EXPOSURE THROUGH CURRICULUM THAT NORTHWELL HELPED CREATE IN HEALTH CARE ADMINISTRATION, NURSING, DIAGNOSTICS, AND BEHAVIORAL HEALTH, SOCIAL WORK. IT IS NOT JUST THE CURRICULUM. WE PROVIDE MENTORSHIP AND CAREER PATHWAYS. THAT IS HOW YOU THINK ABOUT BUILDING THE WORKFORCE OF THE FUTURE. LISA: MY DAUGHTER IS STUDYING TO BE A NURSE. DAVID: IT CAUSED SOME WAVES IN AI AND MEDICINE. YOU'RE GOING TO HAVE AI INVOLVED IN MEDICINE, BUT IT'S GOING TO BE ABLE TO DO THINGS BETTER THAN DOCTORS CAN EVENTUALLY. YOUR REACTION TO THAT? ALSO, HOW ARE YOU THINKING ABOUT THE WAY IT IS GOING TO BE INTEGRATED IN MEDICINE BROADLY? JOHN: IF WE THINK ABOUT THE -- >> DUAL AND MORAL IMPERATIVE HERE. I THINK WE HAVE FIRST A MORAL DUTY TO DEPLOY ANY TOOL THAT WILL HELP SAVE LIVES. AND IF WE WITHHOLD TECHNOLOGY THAT CAN SEE CANCER BEFORE THE HUMAN EYE OR PICK UP ON MEDICATION BEFORE IT OCCURS, AND WE DON'T DEPLOY THAT, THAT'S NOT CONSISTENT WITH OUR MISSION AND OUR PURPOSE. HOWEVER, THE SECOND IMPERATIVE IS WE HAVE TO BE REALLY CLEAR WHAT BELONGS TO AI AND WHAT REALLY NEEDS TO BE HUMAN. THE HUMAN ELEMENT IS IMPORTANT. I'M OK WITH AI READING THE BILLIONS OF PIXELS FOR LOOKING THROUGH A MOUND OF DATA TO FIND THE PATIENTS IN OUR HOSPITAL THAT MIGHT BE AT RISK OF SOMETHING THAT'S NOT YET VISIBLE AND GET FURTHER UPSTREAM. BUT, AI NEEDS TO BE THOUGHT OF AS A PARTNER. IT NEEDS TO BE A TOOL. ANY DECISION OF CONSEQUENCE, THE HUMAN INTERACTION, WHETHER IT IS GOALS OF CARE DISCUSSIONS AND THE LIFE DISCUSSIONS WITH THE PATIENT BEING PRESENT AS YOU GO THROUGH A NEW DIAGNOSIS, DECISIONS OF CONSEQUENCE ESPECIALLY HAVE TO REMAIN HUMAN. IT HAS TO SHARPEN OUR JUDGMENT, BE AVAILABLE TO US. WE NEED TO RETAIN THAT PEACE. FROM A MORE BROAD PERSPECTIVE, I THINK AI WILL BE CRITICALLY IMPORTANT IN ADDRESSING THE AFFORDABILITY CRISIS AS WELL. HOW DO WE USE IT TO ADDRESS THE ADMINISTRATIVE FRICTION AND BURDEN IN HEALTH CARE. THERE'S A LOT OF COST ASSOCIATED WITH THAT. HOW DO WE USE IT TO AMPLIFY THE CAPABILITIES OF OUR WORKFORCE AND USING A DOCTOR'S EXAMPLE, I SEE AI AS NOT REPLACING THE DOCTOR, I SEE IT AS GIVING THE DOCTOR BACK TO THE PATIENT. OUR DOCTORS SPENT 20 MINUTES ON THE COMPUTER FOR EVERY 10 MINUTES THEY SPEND FACE TO FACE WITH THE PATIENTS. THAT IS NOT ACCEPTABLE. I SEE IT AS A TOOL THAT CAN HELP PEOPLE WORK MORE EFFICIENTLY AND WE CAN SCALE THEIR CAPABILITIES. THERE WILL BE SHORTAGES. BUT NOT MAKING IT SEEM LIKE THEY ARE ASKING THEM TO WORK HARDER. IT COULD BE A GREAT TOOL FOR DIAGNOSTICS AND MONITORING AND DRUG DISCOVERY AND DEPLOYMENT. ZACHARY: WE HAVE A MINUTE -- >> WE HAVE A MINUTE LEFT HERE. YOU TOOK OVER THE REINS FROM MICHAEL DOWLING. HOW IS YOUR LEADERSHIP? I'M SORRY I'M ONLY GIVING YOU A MINUTE TO ANSWER THIS BUT HOW IS YOUR LEADERSHIP ROLE DIFFERENT? >> MICHAEL WILL TELL YOU, HE WAS A PHENOMENAL CEO AND I AM STILL FORTUNATE TO HAVE HIM AVAILABLE TO ME. WE ARE AN ORGANIZATION THAT'S NEVER SO GOOD STILL. WE'VE CHALLENGED OURSELVES TO THINK DIFFERENTLY. WE ARE NOT TIED TO LEGACY. WE ARE NOT ACCEPTING THE STATUS QUO. ONE THING WE HAVE IN COMMON IS THE DRIVE FOR INNOVATION AND CHANGE. WHAT'S DIFFERENT IS THE DYNAMICS ARE CONSTANTLY CHANGING. I AM A PHYSICIAN. HE WAS FROM A SOCIAL WORK BACKGROUND. WE MAYBE HAVE A DIFFERENT WAY OF APPROACHING THINGS. DIFFERENT LIFE EXPERIENCES. BUT WE ARE BOTH EQUALLY FOCUSED ON THE MISSION AND THE PURPOSE. AND I THINK HE DID AN INCREDIBLE JOB AND I'M THE RIGHT PERSON FOR THE TIMES THAT WE ARE NOW GOING TO BE EMBARKING ON. DAVID: WE WILL DO ANOTHER VISIT. >> I'LL BE HAPPY TO COME BACK. DAVID: COMING UP, INSIDE THE MAKING OF GRAND THEFT AUTO SIX, THAT IS COMING UP ON "BLOOMBERG THIS WEEKEND," BLOOMBERG RADIO AND BLOOMBERG TELEVISION. ♪ LISA: THANK YOU FOR JOINING US LIVE ON BLOOMBERG THIS WEEKEND. I AM LISA MATEO. WE HAVE SOME BREAKING NEWS FROM MOMENTS AGO. POPE LEE HAS BEEN RELEASED FROM A HOSPITAL IN ROME. -- POPE LEO XIV HAS BEEN RELEASED FROM A HOSPITAL IN ROME. HE WAS DEEMED FIT TO LEAVE AND HE DID. THE POPE WAS ADMITTED ON TUESDAY AFTER SURGERY TO REMOVE A TUMOR FROM HIS RIGHT LUNG. IN COMPANY NEWS, COREWEAVE SHARES FELL 20% IN THE FIRST THREE SESSIONS OF THE WEEK AS ITS DEBT WILL TUMBLE TO LEVELS THAT TYPICALLY INDICATE DISTRESS. COREWEAVE IS CONSIDERED ONE OF THE RISKIEST STOCKS IN THE AI TRADE BECAUSE OF ITS RELIANCE ON HIGH-YIELD DEBT TO FINANCE ITS DATA CENTERS. ANALYSTS SAY THE STOCK WIPEOUT EXPOSES A DEFINE BETWEEN AI SPHERE AND GRITTING. JENSEN HUANG SAYS HE'S CONFIDENT IN NVIDIA. >> WITH RESPECT TO SOME OF THE NEWS, IT IS CHOPPY NEWS. NEWS AS YOU KNOW HAPPENS ALL THE TIME. IT WON'T CHANGE THE FUNDAMENTALS. STAY FOCUSED ON FIRST PRINCIPLES, STAY FOCUSED ON THE FUNDAMENTALS. LISA: HE WAS SPEAKING IN BERLIN WHILE PUSHING EFFORTS TO EXPAND NVIDIA'S VIDEO INFRASTRUCTURE. CHRISTINA: WE MIGHT BE TWO AND A HALF WEEKS FROM THE ELECTION BUT WE ARE ONE MONTH AWAY FROM ONE OF THE MOST ANTICIPATED VIDEOGAME LUNCHES EVER. LISA: WE SPOKE TO JASON WHO GOT A LOOK UNDER THE HOOD AT THE MAKING OF GTA SIX. >> PEOPLE ARE JAZZED ABOUT WHAT THEY'VE SEEN SO FAR. IT HAS BEEN SINCE 2013 WAS THE RELEASE OF GRAND THEFT AUTO FIVE. LISA: THAT'S CRAZY! >> TO BE FAIR, THEY RELEASED RED DEAD REDEMPTION TWO IN 2018. IT'S BEEN SINCE THEN THAT THEY HAVE BEEN IN FULL PRODUCTION ON THIS GAME. LISA: HE SAID THE COMPANY HAD TO REBUILD ITSELF. THAT STOOD OUT TO ME. WHAT -- >> A COUPLE OF BIG THINGS HAPPENED BETWEEN 2018 AND NOW. THEY DOUBLED IN SIZE. THEY WENT FROM 2400 PEOPLE TO 4700 PEOPLE WORKING AT ROCKSTAR GAMES, WHICH IS AN ENORMOUS SHIFT IN HOW THEY DO OPERATIONS. JUST TO HANDLE MANAGING ALL THOSE PEOPLE, YOU HAVE TO BUILD OUT AN ENTIRE LAYER OF MIDDLE MANAGEMENT AND A PRODUCTION TEAM TO KEEP TRACK OF WHAT'S GOING ON WITH THAT MANY PEOPLE. ONE OF THE REASONS THEY DID THIS IS THE CONTROVERSY THEY FACED IN 2018 WHICH IS AFTER THE RELEASE OF THE GAME I MENTIONED, RED DEAD REDEMPTION TWO, THEY FACED A CONTROVERSY OVER WHAT WAS CALLED CRUNCH, WHICH IS EXCESSIVE OVERTIME. PEOPLE HAVING TO WORK NIGHTS AND WEEKENDS, NOT JUST FOR A WEEK OR TWO BUT FOR MONTHS ON END, SOMETIMES WITHOUT GETTING PAID EXTRA TO COMPENSATE FOR THAT. THAT WAS A CONTROVERSY WHEN THE GAME CAME OUT. AND ROCKSTAR TRIED TO MITIGATE THE CRUNCH FOR THIS PRODUCT. CHRISTINA: HOW DID THEY DO THAT? I KNOW THERE IS THIS GIVE-AND-TAKE ABOUT AI AND USING IT FOR CODING AND GRAPHICS BUILDING AND WAS THAT INCORPORATED IN THIS PROCESS IN THIS GAME? WILL THEY BE INCORPORATED IN THE FUTURE? HOW ARE THEY WORKING THROUGH THAT WORKFLOW SO THAT FOLKS ARE NOT SLEEPING IN THE OFFICE 20? -- 24/7? >> THEY SAY THEY HAVE NOT USED AI ON THIS PROJECT. WHO KNOWS WHAT WILL HAPPEN IN THE FUTURE. WE BROKE THE NEWS ON BLOOMBERG EARLIER THIS WEEK THAT FORTNIGHT IS ALL IN ON AI. THAT'S A WHOLE OTHER CAN OF WORMS. THERE ARE A FEW THINGS THEY DID. ONE IS THAT THEY DOUBLED THE SIZE OF THE STUDIO. HAVING MORE PEOPLE CAN MAKE UP FOR THE WORKLOAD. THEY TOLD ME THEY TRIED TO DO BETTER SCHEDULING AND BETTER MEASUREMENTS OF HOW MUCH A PERSON COULD REASONABLY DO IN A DAY WITHOUT GOING OVERBOARD. THAT SAID, A LOT OF THOSE MEASURES FROM WHAT I HEARD TALKING TO PEOPLE THERE, THEY DEFINITELY STILL DID CRUNCH, THEY STILL PUT IN OVERTIME. SOMETHING ROCKSTAR DID TO TRY TO MAKE UP FOR THAT, RECOGNIZING THAT IT'S PROBABLY GOING TO HAPPEN ON A BIG, AMBITIOUS CREATIVE PROJECT LIKE THIS, SOMETHING THEY DID WAS START OFFERING TIME IN THE LOOP. THIS EVERY HOUR THAT YOU WORK THAT IS EXTRA, YOU GET THAT POWER BACK IN PAID TIME OFF. -- THAT OUR BACK IN PAID TIME OFF. SOME ARE SKEPTICAL THAT THEY WILL SEEE THAT TIME. LISA: 230 MILLION COPIES, TALK ABOUT SOME OF THE PROJECTIONS THAT ARE EXPECTED FOR THIS. CHRISTINA: AND CAN YOU TALK ABOUT THE PRICE TOO? IT'S EXPENSIVE FOR A GAME. >> IT'S $80, ON THE HIGHER END. $100 IF YOU WANT THE BONUSES. LISA: WHICH YOU HAVE TO GET. [LAUGHTER] CHRISTINA: I MIGHT ACTUALLY TRY TO PLAY THIS GAME. ANYWAY, CONTINUE. >> IT'S PRETTY WILD. FUN FACT, IT'S THE FIRST MODERN GAME FROM ROCKSTAR GAMES WITH A FEMALE PROTAGONIST. GRAND THEFT AUTO GAMES HAVE ALWAYS BEEN KNOWN AS, ISN'T THAT THE GAME WHERE YOU GO AND KILL PROSTITUTES AND GO INTO STRIP CLUBS AND STUFF LIKE THAT? IT'S INTERESTING TO SEE THIS TIME IT IS A FEMALE PROTAGONIST. LISA: THIS IS GOING BEYOND THE VIDEOGAME INDUSTRY, CORRECT? >> YEAH. SEPTEMBER OF THIS YEAR WAS ONE OF THE MOST CROWDED GAME RELEASE MONTHS IN THE HISTORY -- IN HISTORY. THIS IS AN UNPRECEDENTED EVENT. AS FAR AS THE SCOPE, IT SOLD 230 MILLION DOLLAR COP -- 230 MILLION COPIES, MAKING IT THE BEST SELLING NONMOBILE GAME OF ALL TIME. IT'S ESTIMATED TO SELL 40 MILLION COPIES IN ITS FIRST FEW MONTHS ON SALE AND THAT WOULD GENERATE MORE THAN $3 BILLION IN REVENUE. THIS IS GOING TO BE, FOR COMPARISON'S SAKE, IT WILL BE BIGGER THAN THE ENTIRETY OF THE ODYSSEY IN JUST A COUPLE OF WEEKS, POTENTIALLY. CHRISTINA: THE SCOPE OF THE GAME IS PHYSICALLY BIGGER. THEY ALWAYS DO FAKE CITIES. THE LAST ONE WAS L.A.. THEY ARE SO ACCURATE FROM PEOPLE WHO HAVE PLAYED THE GAME THAT THEY HAVE GONE TO THE CITIES AND THEY SAY I KNOW EXACTLY WHERE I AM. YOU GUYS GOT AN INSIDE LOOK AND THEY SAID THEY WERE SENDING PEOPLE DOWN TO, I THINK IT WAS BASED ON THE STATE OF FLORIDA TO FIGURE IT OUT. TELL US WHY THEY DO THAT AND WHY IT IS JUST A BIGGER MAP? >> A TON OF ROCKSTAR DEVELOPERS GOT TO GO TO MIAMI FOR RESEARCH. CHRISTINA: TOUGH GIG. >> THEY WERE DOING A HELICOPTER RIDE TO SCOPE OUT THE AERIAL VIEWS OF THE CITY SO THEY CAN MAP IT OUT IN THE GAME. ONE OF THE THINGS THEY DID, THEY WERE IN THIS CHOPPER AND THEY GOT TO HOVER OVER A BEYONCE CONCERT. THEY GOT TO WATCH BEYONCE PERFORMED FROM THE AIR. IT WAS LIKE ARE YOU GOING TO GET SHOT DOWN BEING IN BEYONCE'S AIRSPACE? CHRISTINA: OR CAUGHT IN THE WIND MACHINE, THAT COULD HAVE BEEN DANGEROUS. >> YOU HAVE TO BE CAREFUL WHEN YOU ARE SNEAKING INTO CONCERTS FROM THE AIR. THEY WENT TO NIGHT CLUBS. THEY WENT ON POLICE RIGHT ALONG'S. THEY TOLD ME THEY MET WITH CRIMINALS. ONE PERSON TOLD ME, ONE PERSON SAID EVERY PERSON THEY MET WAS EAGER TO START TELLING THEM ABOUT THE CRIMES THEY HAVE COMMITTED. BECAUSE THEY HEAR ABOUT GRAND THEFT AUTO. I DON'T KNOW IF YOU GUYS REMEMBER THIS BUT WHEN THE SOPRANOS CAME OUT, THE ACTORS AND I WOULD GET ALL OF THESE CALLS FROM REAL MOBSTERS SAYING YOU GUYS NAILED THIS AND YOU GOT THIS SO RIGHT. REAL CRIMINALS ARE LOOKING AT GRAND THEFT AUTO AND I DON'T KNOW IF IT'S INSPIRATIONAL FOR THEM BUT THEY WANT TO PLAY A ROLE. CHRISTINA: THEY WANT THAT AIR OF AUTHENTICITY. LISA: IS IT GOING TO BE WORTH THE WAIT? THE BIG QUESTION, WILL THEY HAVE TO WAIT MORE THAN 10 YEARS FOR THE NEXT ONE TO COME OUT? >> I DON'T KNOW THE ANSWER TO IF IT'S GOING TO BE WORTH THE WAIT. I HAVE NOT PLAYED THE GAME. WE WILL BE CHECKING IT OUT ON BLOOMBERG AND REVIEWING IT AND COVERING IT ON THE WEBSITE ON BLOOMBERG. AS FAR AS THE NEXT GAME, THEY VOWED TO MEET KNOW, IT WON'T TAKE ANOTHER EIGHT YEARS TO MAKE THEIR NEXT GAME. THEY FEEL LIKE THEY BUILT A LOT OF FOUNDATIONAL STUFF WITH THIS GAME, INCLUDING DOUBLING THE TEAM SIZE, GETTING THE TEAM UP AND RUNNING AND GETTING PEOPLE FAMILIAR WITH HOW THEIR PRODUCTIONS WORK AND THEIR PIPELINES WORK. THEY FEEL LIKE THEY HAVE THESE FOUNDATIONS IN PLACE AND IT WILL TAKE LESS TIME TO WORK -- TO FINISH UP FUTURE EXPANSIONS, GAMES, WHENEVER THEY WORK ON NEXT. CHRISTINA: AND AN ARMY UNIT IN GEORGIA IS OFFERING A FOUR DAY PASS AS A BONUS TO PLAY GRAND THEFT AUTO. LISA: NO KIDDING. CHRISTINA: IF THERE ARE 20 SOLDIERS AT FORT STEWART IN GEORGIA, THEY HAVE CHOSEN THAT OPTION. YOU KNOW WHAT? FOUR DAYS TO HANG OUT WITH YOUR BUDDIES AND PLAY GAMES. DAVID: IS IT A BEATABLE GAME? CHRISTINA: I DON'T KNOW. DAVID: ALL RIGHT. COMING UP, THE CHIPS ARE OUT. WE WILL SEE WHERE THEY FALL. THE POINTED NEWS QUIZ, COMING UP. STAY WITH US. ♪ DAVID: WELCOME BACK. WE LIKE TO END THIS JOURNEY WITH A TREAT. THIS ALWAYS IS FOR ME. THE POINTED NEWS QUIZ. CHRISTINA: WE TIED LAST WEEK. I ALMOST HAD YOU. THIS COULD BE MY CHANCE. LISA MATEO REFUSES TO LET ME CHEAT. I THINK IT'S A BETRAYAL OF OUR SISTERLY BOND ON THE SHOW. I FORGET THIS EXISTS UNTIL IT COMES UP EVERY WEEKEND AND THEN I GO SHOOT. YOU ARE LITERALLY WINNING. IF I WAS CHEATING, I WOULD BE BETTER AT IT. DAVID: THANK YOU FOR THAT REMINDER. LISA, GREAT TO SEE YOU. LISA: LET'S DO THE RULES. WE DON'T WANT ANY CHEATING. SO, YOU EACH HAVE YOUR CATEGORY OF CHIPS IN FRONT OF YOU. 30 CHIPS. WE HAVE THREE CATEGORIES. I WILL START WITH EACH CATEGORY AND YOU GUYS PLACE YOUR BETS. YOUR ANSWERS ON THE WHITEBOARD AND THEN YOU FLIP THEM AND THEN WE SEE IF YOU GOT IT CORRECT. DAVID: IT'S AS SIMPLE AS THAT, EXCEPT IT'S NOT. LISA: IT'S NOT MULTIPLE CHOICE AND YOU HAVE TO GO OFF THE TOP OF YOUR HEAD FOR YOUR ANSWERS. LET'S START WITH THE CATEGORIES. FIRST CATEGORY IS FOOD AND BEVERAGE. CHRISTINA: I ALWAYS DO VERY WELL -- YOU ALWAYS DO VERY WELL ON THOSE. LISA: HE DOES. HE LOVES HIS BEVERAGES. CARTELS IS THE SECOND ONE AND SMART HOMES IS CATEGORY NUMBER THREE. CHRISTINA: I'M COMPETENT ON ONE OF THESE. I AM LESS SURE ABOUT TWO OF THE OTHERS. I'M DOING 10 AND 10 AND 10. DAVID: DO I HAVE TO DO ALL 10? LISA: YOU DO. MATH HAS TO BE EASY. THIS IS A GOOD ONE. STARBUCKS ISSUED A STATEMENT ON OCTOBER 12 THAT IT WOULD NOT BUY WHICH FAST CASUAL RESTAURANT? I KNOW YOU GUYS HAVE THIS BECAUSE YOU ARE WRITING FAST AND FURIOUS. WHAT IS THE NAME OF THE FAST CASUAL RESTAURANT. CHRISTINA: THIS IS NOT A GOOD ILLUSTRATION. I WAS TRYING TO DRAW A BURRITO. LISA: SHE GAVE A HINT. CHIPOTLE. BRIAN NICCOL USED TO RUN CHIPOTLE. CHRISTINA: WAS IT JUST THAT PEOPLE WERE ASSUMING THAT? DAVID: EVERYONE LOVES A BURRITO AND A FRAPPUCCINO. LISA: PUMPKIN SPICE BURRITO? DAVID: NOT MEG IN THE CRAM OFF. >> WE ARE OFF TO A GOOD START. LISA: THE PHILIPPINES ANTITRUST WATCHDOG SAID IT'S IMPOSING A RECORD FINE ON A CARTEL ENGAGING IN A SCHEME CONTAINING WHICH VEGETABLE? CHRISTINA: I DID READ THIS ONE. LISA: YOU DID? I TOTALLY MISSED THIS ONE. CHRISTINA: I DON'T UNDERSTAND THE SCHEME BUT I REMEMBER WHAT THE VEGETABLE WAS. LISA: I DON'T KNOW ABOUT THAT. A PHILIPPINES ANTITRUST WATCHDOG IMPOSED A RECORD FINE ON A CARTEL FOR A SCHEME INVOLVING WHICH VEGETABLE. DAVID: I SAID A POTATO. CHRISTINA: ONIONS. LISA: ONIONS, CHRISTINA RUFFINI. IN 2022, IT INCREASED THE PRICE OF THE VEGETABLE, MAKING IT THREE TIMES THE PRICE OF CHICKEN. 25% HIGHER THAN THE COST OF BEEF. WE KNOW HOW MUCH BEEF COSTS. IT WAS NOT -- THERE ARE A COUPLE OF WORDS IN HERE THAT I CANNOT PRONOUNCE. WE ARE GOING TO MOVE ON. CHRISTINA: I DON'T KNOW WHAT THIS ONE IS. SMART HOMES, LET'S SEE WHAT THIS MIGHT BE. LISA: HERE WE GO. APPLE ANNOUNCED A PUSH TO SMART HOME DEVICES INCLUDING A PARTNERSHIP WITH WHICH COMPANY TO DESIGN DOORBELL, THERMOSTAT AND OTHER ACCESSORIES? WHICH COMPANY DID APPLE PARTNER WITH TO DO THIS? THIS WAS A BIG STORY. LET'S SEE IF YOU GUYS GET IT. DAVID: I WROTE SAMSUNG. LISA: NO, DAVID GURA. CHRISTINA: LG. LISA: LG, YES! DAVID: THE OTHER CONGLOMERATE. >> WE DIDN'T EVEN HAVE TO CHEAT. CHRISTINA: OH, LOOK AT THAT. I'M GIVING THEM TO LISA. LISA: YOU DOUBLED UP ON THAT ONE. CHRISTINA: I WROTE THE LETTER S AND THEN I CROSSED IT OUT. LISA: YOU HAVE A CHANCE TO WIN BACK THESE CHIPS IN THE BONUS. LET'S TRY IT, DAVID GURA. SPORTS. [LAUGHTER] DAVID: I HAVE PROVEN MY PROWESS ON THIS FRONT ALREADY TODAY. LISA: I'M SORRY, CHRISTINA. I DON'T MAKE THE QUESTIONS. I FEEL LIKE YOU ARE GOING TO GET THIS ONE. YOU ARE TO GET THIS. LISTEN CLOSELY. MULAN KICKS, I DO SPORTS, SA YSH, AND RYK A ARE ALL BRANDS OF ATHLETIC SHOES THAT CATER SPECIFICALLY TO WHICH GROUP OF CUSTOMERS? DAVID: I SAID GOLFERS. LISA: NO. CHRISTINA: IT'S WOMEN! DAVID: I FIND THIS EERILY ANOMALOUS. CONGRATULATIONS. CHRISTINA: THAT'S THE WORST SPORTS QUESTION, EVER. LISA: IT'S A FASHION QUESTION. DAVID: I APPRECIATE THAT, LISA. IT'S GOOD TO STAY HUMBLE AND HUNGRY AS WELL. LISA: SHE GOT A BONUS. CHRISTINA: THAT'S SO NICE. DAVID: YOU CAN TEST YOUR KNOWLEDGE ON ALL 10 QUESTIONS AND TAKE THE POINTED NEWS QUIZ ON THE BLOOMBERG BUSINESS APP. THANK YOU FOR JOINING US. JOIN US TOMORROW STARTING AT 7:00, WALL STREET TIME. I AM DAVID GURA. CHRISTINA: I AM CHRISTINA RUFFINI ALONG WITH THE LEGENDARY QUIZ MASTER, LISA MATEO. WALL STREET WEEK WITH DAVID WESTIN STARTS RIGHT NOW.