# GM Boosts 2026 Outlook on Premium Pricing for Big Trucks

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 21 Jul 2026, 18 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/1d34e723-2db9-486b-bbcd-b48e0113e623/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu -David Welch, Bloomberg Detroit Bureau Chief, discusses GM earnings. General Motors raised its full-year profit forecast by another $500 million after beating second-quarter earnings estimates, powered by stronger margins on its largest vehicles and lower tariff costs. The company now expects its earnings before interest and taxes of as much as $16 billion this year, and Chief Executive Officer Mary Barra said she sees that positive momentum continuing into next year. -Chris Palmeri, Bloomberg News Senior Editor and Entertainment Team Leader, discusses a federal judge temporarily pausing Paramount Skydance Corp.’s takeover of Warner Bros. Discovery Inc., saying it “likely” violates antitrust law. The judge ordered the companies to hold off on consummating the deal for 14 days and scheduled an Aug. 3 hearing on whether to extend the hold for longer. A group of states sued Paramount Skydance Corp. seeking to block its bid to buy Warner Bros. Discovery Inc., alleging the deal would leave viewers with higher prices and fewer choices for movies and television. -Scott Rechler, CEO and Chairman at RXR, discusses the state of commercial real estate. He discusses the NYC office market, the rise of AI, NYC’s competitiveness, and how RXR is capitalizing in the NYC market and across the country. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. You're listening to the
[0:10] Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
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[0:21] Speaker 1: or watch us live on YouTube.
[0:24] Speaker 2: David Welsh, he is our Bloomberg Detroit Bureau chief, and
[0:26] Speaker 2: we'll talk about General Motors's earnings. But I was checking
[0:29] Speaker 2: out Canada's exports to the US, and energy is number
[0:33] Speaker 2: one on the list one hundred and sixty billion Canadian
[0:35] Speaker 2: dollars worth of exports to the US and twenty twenty
[0:38] Speaker 2: five number two is motor vehicles and parts at seventy
[0:42] Speaker 2: four billion Canadian dollars. What's the thinking in Detroit when
[0:46] Speaker 2: the President threatens tariffs on Canadian products?
[0:51] Speaker 3: Generally speaking, in Detroit, the car companies worry about this
[0:56] Speaker 3: because they've got long standing manufacturing There A want a
[0:59] Speaker 3: big Canadian hearts suppliers too. Magnet is big, Martin Ray
[1:03] Speaker 3: is another one that's a good sized company. They send
[1:05] Speaker 3: a lot of parts over the border very quietly. Toyota
[1:09] Speaker 3: makes a lot of vehicles in Ontario and Ford and
[1:12] Speaker 3: General Motors still have production over their soda Stilantis. So look,
[1:16] Speaker 3: the car companies don't like anything that really is going
[1:19] Speaker 3: to upset their supply chains anymore than it already has.
[1:22] Speaker 3: Mexico has already been a big deal for them and
[1:25] Speaker 3: certain parts of Asia as well, So they'd rather see
[1:29] Speaker 3: the status quo remain in place and hope it does here.
[1:32] Speaker 3: In fact, the car companies generally want to see us
[1:35] Speaker 3: MCA remain is similar to what it's been since Trump
[1:41] Speaker 3: set it up, what five six years ago to begin with,
[1:44] Speaker 3: But that's not gonna be the case. But they have
[1:47] Speaker 3: been fighting to sort of claw back some exemptions to
[1:50] Speaker 3: that and reduce their cost That's why General Motors. One
[1:54] Speaker 3: of the reasons General Motors had better earnings today is
[1:56] Speaker 3: they've managed to lobby their way into at least a
[1:58] Speaker 3: little bit of a reprieve on these tariffs.
[2:01] Speaker 4: And I'm looking at the gym results here. This is,
[2:04] Speaker 4: you know, right back to their playbook, which is I
[2:06] Speaker 4: mean they boost their twenty twenty six alib due to
[2:09] Speaker 4: premium pricing on big trucks. Boy, that is America auto
[2:12] Speaker 4: industry today. Premium pricing big trucks SUVs. That seems to
[2:17] Speaker 4: be working for certainly Forward here, I mean gim.
[2:22] Speaker 3: Well, it's working for all of them really a couple
[2:25] Speaker 3: of things. So, yeah, they're charging a lot of money
[2:28] Speaker 3: for their big vehicles. Now, we did, actually I will
[2:31] Speaker 3: say this, we did see some discounting on pickup trucks.
[2:35] Speaker 3: As you know, the competition is always tough in that segment,
[2:39] Speaker 3: and you've got high fuel prices that I think is
[2:41] Speaker 3: keeping some buyers on the fence for a while. So
[2:46] Speaker 3: you know, there's a bit of that going on. But
[2:49] Speaker 3: GM's average vehicles selling for fifty two thousand dollars, and
[2:53] Speaker 3: you know that's an expensive vehicle, so they are they're
[2:57] Speaker 3: keeping price up. That's one of the things I'm doing
[2:59] Speaker 3: well for them. We've we talked about terrorf relief. They
[3:02] Speaker 3: have lower warranty costs. That's helping them as well. The
[3:05] Speaker 3: other thing too, to keep an eye on. They've been
[3:07] Speaker 3: boosting production. They had pretty lean inventories throughout the second quarter,
[3:11] Speaker 3: so some of this is that they're just kind of
[3:14] Speaker 3: putting more into the channel to their dealerships. And now
[3:18] Speaker 3: GM says it's sustainable and that they seek similar momentum
[3:23] Speaker 3: into twenty twenty seven or twenty six and twenty seven.
[3:26] Speaker 3: But they've got to deliver on that otherwise, you know,
[3:30] Speaker 3: they're building inventory and they may have to pull back
[3:32] Speaker 3: at some point.
[3:33] Speaker 2: Okay, So GM and FOR they're all doubling down on
[3:37] Speaker 2: these big premium trucks. What does the carmaker strategy look
[3:42] Speaker 2: like when it comes to hybrids, when it comes to evs,
[3:45] Speaker 2: Because my understanding is there was another charge related to
[3:49] Speaker 2: a reduced production of evs.
[3:52] Speaker 3: That's right, And what that charge is, it's basically for
[3:55] Speaker 3: stuff they've already announced, but they've had to pull back
[3:57] Speaker 3: production on the batteries they make for the evs, and
[4:00] Speaker 3: they've had to pull back on production of the electric
[4:02] Speaker 3: vehicles themselves. They're retooing a plant in suburban Detroit that
[4:06] Speaker 3: they thought was going to make electric pickup trucks. But
[4:08] Speaker 3: nobody buys electric pickup trucks. They don't buy gms, they
[4:10] Speaker 3: don't buy fours, they don't buy tessels, they don't buy rivians.
[4:13] Speaker 3: No one wants an electric pickup truck. So right, so
[4:16] Speaker 3: right now we are seeing are these charges coming through
[4:19] Speaker 3: the system, and GM has taking a total of eleven
[4:22] Speaker 3: billion in charges there like they haven't canceled a single
[4:25] Speaker 3: electric vehicle in that lineup. They still sell a dozen
[4:28] Speaker 3: different evs and that's their strategy. They don't have any
[4:31] Speaker 3: hybrids on the market now except for the E Ray,
[4:34] Speaker 3: which is a Corvette very well volume. They say they're
[4:37] Speaker 3: going to have a handful of them coming. Mary Borrow
[4:39] Speaker 3: told Bloomberg TV that but not on the market yet.
[4:42] Speaker 3: Ford only has a couple of Stilantes, very little presence
[4:46] Speaker 3: there right now. That's a Hyndai in Toyota and two
[4:48] Speaker 3: degree Honda Game, and they're good. All three of them
[4:51] Speaker 3: are getting good sales gains in the US market because
[4:54] Speaker 3: they've got hybrid electric vehicles at a time when gas
[4:57] Speaker 3: is selling from more than four bucks.
[4:59] Speaker 4: Stay with us.
[5:00] Speaker 2: 's more from Bloomberg Intelligence coming up after this.
[5:06] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us Live
[5:10] Speaker 1: weekdays at ten am Eastern on Apple Coarclay, and Android
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[5:21] Speaker 4: Well here this is the story that just won't die.
[5:22] Speaker 4: Paramount Skydance, I'm not even used to calling it that,
[5:25] Speaker 4: but whatever, Warner Brothers Discovery, Paramoun wants to buy him
[5:30] Speaker 4: the federal regulator said, okay. The state said, whoa, whoa
[5:34] Speaker 4: wa wait up here, We've got some problem. And looking
[5:37] Speaker 4: it looks like they're going to hold off this deal
[5:38] Speaker 4: at least temporarily. This is Paramounts Guidance taking over a
[5:42] Speaker 4: Warner Brothers Discovery.
[5:43] Speaker 5: Wow.
[5:44] Speaker 4: Chris Palmary joins his here, senior editor and Entertainment team
[5:47] Speaker 4: leader for Bloomberg News. He's based out there in LA
[5:49] Speaker 4: with all those folks, but he's here in the greatest
[5:51] Speaker 4: city in world, New York. Chris, Thanks so much for
[5:54] Speaker 4: joining us here. The States are blocking the Paramounts Guidance
[5:59] Speaker 4: murder or acquisition of Warner Brothers Discovery. Can they do that?
[6:03] Speaker 5: Apparently?
[6:04] Speaker 6: Yes, very mad they can get a judge to do that.
[6:07] Speaker 4: Yeah. And you know, we've seen this a couple of instances.
[6:11] Speaker 6: We saw, you know, the States get together and go
[6:14] Speaker 6: around a Department of Justice deal with Live Nation, remember
[6:18] Speaker 6: and themal Ticketmaster thing. So so yes, they do have
[6:22] Speaker 6: this power and they're using it. This is seen as
[6:24] Speaker 6: sort of like antidote to a very sort of relaxed
[6:28] Speaker 6: Trump administration merger and acquisition policy.
[6:32] Speaker 4: So at the very least three they've got some I
[6:35] Speaker 4: guess a temporary streaming order. Is that what they have
[6:37] Speaker 4: here correct? And that's going to delay the deal for
[6:39] Speaker 4: a couple of weeks.
[6:41] Speaker 6: Right, So right now they can't close the deal until
[6:43] Speaker 6: August third. There's another hearing August third that will be
[6:46] Speaker 6: determining whether that injunction don't close. The deal goes until
[6:51] Speaker 6: there's a verdict in this case, so potentially pushing it
[6:55] Speaker 6: through next year, which would be very bad for Pairmount.
[6:58] Speaker 4: Yes, and now the I guess the seller here said
[7:01] Speaker 4: there's probably some risk when we were negotiating this deal
[7:04] Speaker 4: that something would happen, and so we negotiated a ticking
[7:07] Speaker 4: feeh what's that.
[7:10] Speaker 6: Seven million dollars a day that paramount must play Warner
[7:15] Speaker 6: Brothers shareholders if they fail to close by the end
[7:18] Speaker 6: of September. Okay, wow, And so that adds up to
[7:21] Speaker 6: more than six hundred million dollars a quarter.
[7:24] Speaker 5: Okay, holy all.
[7:25] Speaker 4: Right, So that again, that's you put that on the
[7:28] Speaker 4: deal if you think there's a material risk that for
[7:31] Speaker 4: whatever reason, it won't get approved, and so you got
[7:34] Speaker 4: to really put the onus on the buyer to make
[7:36] Speaker 4: sure it does get approved. What's the feeling in Hollywood
[7:40] Speaker 4: is this deal going to go through. Can it really
[7:42] Speaker 4: be blocked?
[7:43] Speaker 6: Well, yeah, we're going to do that sort of a
[7:44] Speaker 6: Hollywood version in the I think wall Street has largely
[7:48] Speaker 6: bet that that he's going to get.
[7:50] Speaker 5: This deal done.
[7:51] Speaker 4: Okay, Okay, he being Ellis David Allison, who is the
[7:54] Speaker 4: CEO of.
[7:54] Speaker 6: Whose father is one of the richest contents. Well, so
[7:57] Speaker 6: that helps, and how there's certainly people think it's going
[8:02] Speaker 6: to happen who've sort of resigned to the fate.
[8:04] Speaker 4: But they're very not happy about it.
[8:06] Speaker 6: I mean, we've seen the Writers Guild actually sue to
[8:08] Speaker 6: try to block the deal. We've seen very strong statements
[8:11] Speaker 6: from other unions. Uh, you know the rank and file
[8:14] Speaker 6: person in Hollywood who's never a happy person in general. Right,
[8:17] Speaker 6: it's a tough business. It sees this for for what
[8:21] Speaker 6: it is. There's going to be massive consolidation. There's going
[8:24] Speaker 6: to be layoffs. Uh, there's going to be one bigger
[8:26] Speaker 6: conglomerate that they have to answer to. Uh, you know
[8:30] Speaker 6: for pitching stories, you know, pitching movies and TV shows
[8:33] Speaker 6: and things like that, jobs, all of that. It's it's
[8:35] Speaker 6: it's it's going to be it's going to be difficult,
[8:37] Speaker 6: and it's already been a difficult market, particularly in Los
[8:40] Speaker 6: Angeles in the film business. A lot of jobs moving overseas,
[8:44] Speaker 6: a lot of cutbacks, and the threat of AI. It's
[8:47] Speaker 6: not a happy time there.
[8:48] Speaker 4: So I mean, in reality, I mean, you think about it.
[8:51] Speaker 4: You're putting two studios to get our Paramount and Warner Brothers,
[8:53] Speaker 4: two of the largest studios in the business. It's almost
[8:57] Speaker 4: like redund I mean, do I need this stage manager
[9:04] Speaker 4: on this studio if I've got one across the street
[9:06] Speaker 4: on the other, you know, I.
[9:07] Speaker 6: Mean yeah it well, and not just the two studios,
[9:10] Speaker 6: but two streaming services Paramount Plus and HBO Max, and
[9:13] Speaker 6: two giant cable network operations, I mean everything from CNN
[9:17] Speaker 6: to MTV, so a lot of redundancies. Paramount's argument is
[9:23] Speaker 6: that they're going to run Warner Brothers in Paramount studios separately,
[9:27] Speaker 6: separate lots, separate management teams. They said they're going to
[9:30] Speaker 6: have thirty movies a year they're releasing specifically for theaters,
[9:34] Speaker 6: which is higher output than they've had historically the two
[9:36] Speaker 6: companies separately.
[9:37] Speaker 4: We'll see if that all happens. That's the promises.
[9:40] Speaker 5: Now.
[9:40] Speaker 6: The question is, you know, when they do this deal
[9:43] Speaker 6: they've got eighty billion in debt. You know, the cable
[9:46] Speaker 6: networks are losing viewers and advertisers and very rapid clip
[9:51] Speaker 6: If things really get difficult, how how can they keep
[9:55] Speaker 6: all of that operations up?
[9:56] Speaker 4: Is there a chance that they walk away from this?
[9:59] Speaker 5: Parent?
[10:01] Speaker 4: Sky Instant says it's just too much. I have a
[10:03] Speaker 4: hassle here. What's the company been saying?
[10:05] Speaker 6: Well, no, that's not what they're saying publicly. But look
[10:08] Speaker 6: at this math seven billion dollar breakup fee if the
[10:13] Speaker 6: deal doesn't go through, whether it's their choice or a
[10:16] Speaker 6: court's choice. And that's on top of the two point
[10:19] Speaker 6: eight billion they've already paid Netflix to walk away, So
[10:22] Speaker 6: that would be close to ten billion sort of probably
[10:25] Speaker 6: considering all the lawyer's fees and all that ten billion
[10:28] Speaker 6: that the Ellisons have spent on this quest that potentially
[10:32] Speaker 6: could get them nothing.
[10:33] Speaker 4: Wow, it just goes I mean, you've been in this
[10:36] Speaker 4: business a long time. I've been in this business long time.
[10:39] Speaker 4: Hollywood is a tough place to do. Deals they just
[10:43] Speaker 4: buy and large don't work.
[10:45] Speaker 5: Well.
[10:45] Speaker 4: Just look at the history of Warner Brothers.
[10:46] Speaker 6: How many owners as it had in the last fifteen years, and.
[10:49] Speaker 7: How has it ended stay with us. More from Bloomberg
[10:53] Speaker 7: Intelligence coming up after this. You're listening to the Bloomberg
[10:59] Speaker 7: and Religion's podcast. Catch us live weekdays at ten am
[11:03] Speaker 7: Eastern on Apple Coarclay and Android Auto with the Blueberg
[11:06] Speaker 7: Business App. Listen on demand wherever you get your podcasts,
[11:09] Speaker 7: or watch us live on YouTube.
[11:11] Speaker 4: Through Speaking of real Estate, perfect timing. Scott Reclord joints
[11:15] Speaker 4: us here. He's the CEO and chairman of our x R.
[11:17] Speaker 4: Joining us here in studio. Scott, thanks so much for
[11:19] Speaker 4: coming back.
[11:19] Speaker 5: It's going to be here. Thanks Paul.
[11:21] Speaker 4: New York City office market give us an overview. How
[11:24] Speaker 4: are things out there these days? It seems like it's
[11:26] Speaker 4: coming back in a big way, but it gives the details.
[11:29] Speaker 5: It's more than back.
[11:30] Speaker 8: I mean, I've been in this business for thirty years
[11:32] Speaker 8: and i have not seen the New York office market.
[11:35] Speaker 5: Is as strong as it is today.
[11:37] Speaker 8: If you look at leasting for the first six months,
[11:39] Speaker 8: it was twenty three million square feet. If you think
[11:42] Speaker 8: that carries through this year, it will take us back
[11:44] Speaker 8: to levels that we haven't seen since two thousand. Rent
[11:47] Speaker 8: growth has been extraordinary, the fastest in the country. You know,
[11:51] Speaker 8: there's still a flight to quality. So you've seen the
[11:53] Speaker 8: higher quality buildings are really really doing well. But when
[11:56] Speaker 8: you take like the top fifty buildings, the vacancy rates
[11:59] Speaker 8: like three percent, right, So when you're in that mode,
[12:02] Speaker 8: and even big blocks of space, there's in all of
[12:04] Speaker 8: Manhattan there's about twenty two high quality big blocks of space,
[12:08] Speaker 8: and there's right now over sixty companies looking for over
[12:10] Speaker 8: one hundred thousand square feet, so one hundred thousand square
[12:12] Speaker 8: feet only twenty two available and sixty something looking for
[12:16] Speaker 8: one hundred thousand square feets of blocks. So it's shifted
[12:18] Speaker 8: to a landlord's market versus a tenant market right now.
[12:22] Speaker 2: Of course, all office buildings are not created equal, and
[12:25] Speaker 2: plenty of office buildings are being retrofitted to become residential.
[12:29] Speaker 2: And we saw in New York at least an incident
[12:32] Speaker 2: in which there was a buckling of one of those
[12:34] Speaker 2: commercial buildings that's being converted into residential. Tell us what
[12:38] Speaker 2: you thought when that first happened, and you know just
[12:41] Speaker 2: your thought process and how we can prevent things like that.
[12:44] Speaker 8: Yeah, So these conversions of office to residential has been
[12:49] Speaker 8: a great program for New York. There was actually they
[12:50] Speaker 8: put a tax incentive in place to encourage it, and
[12:53] Speaker 8: there's been almost fifteen million square feet that's underway right now.
[12:56] Speaker 5: So take an old office buildings.
[12:58] Speaker 8: Creating housing where we have like a one point eight
[13:00] Speaker 8: eight percent vacancy rate in housing. So great public policy,
[13:02] Speaker 8: but not all conversions are created equal either, because this
[13:05] Speaker 8: is not just taking an office building and putting residential
[13:09] Speaker 8: into it. They were actually building another building on top
[13:12] Speaker 8: of the existing structure, which already takes a complex construction
[13:16] Speaker 8: project and makes it more complex. And you know, the
[13:19] Speaker 8: initial read out is that there was two columns that
[13:23] Speaker 8: were supposed to have been reinforced that were in reinforced,
[13:26] Speaker 8: which created.
[13:26] Speaker 5: That buckling that you're talking about.
[13:29] Speaker 8: You know, I think we're going to get better clarity
[13:31] Speaker 8: as to what ultimately happened and was it an engineering issue,
[13:34] Speaker 8: was it an issue on the project? But you know,
[13:37] Speaker 8: clearly this is a program that New York should continue
[13:41] Speaker 8: to lean into. It's really created a great dynamic for
[13:43] Speaker 8: New York. It's not only great in terms of creating housing,
[13:45] Speaker 8: but think about these little neighborhoods that we're creating that
[13:48] Speaker 8: used to be just commercial. Now people live there, They
[13:51] Speaker 8: support the retail and the restaurants on the weekends. You know,
[13:53] Speaker 8: there's these twenty four to seven walkable communities. So you
[13:56] Speaker 8: know what you have seen is lenders and investors have
[14:00] Speaker 8: raised the risk spectrum now because we're doing four thousand
[14:03] Speaker 8: units ourselves, both on the investing side and development side,
[14:06] Speaker 8: and we've looked at these things now and said, Okay,
[14:09] Speaker 8: if this risk is higher, if you're going to have
[14:11] Speaker 8: this overbuild, maybe we wouldn't do it today.
[14:14] Speaker 4: So talk to us about retail in big cities like
[14:17] Speaker 4: New York because when you walk out it, when you're
[14:19] Speaker 4: done with us today, you can walk down on Lexington Avenue.
[14:21] Speaker 4: I'm going to ask you to look right across the street.
[14:23] Speaker 4: There's a ton of unused retail space that's been there
[14:28] Speaker 4: since the pandemic. Can you go rent that today?
[14:31] Speaker 5: What's what's going on?
[14:33] Speaker 8: You know, it's it's again sub market by sub market
[14:35] Speaker 8: when you think about New York, right, so even this
[14:37] Speaker 8: point about these conversions.
[14:38] Speaker 4: Right, it's across the street from Bloomberg rent the space interesting.
[14:42] Speaker 8: The Upper east Side you know has had a more
[14:44] Speaker 8: challenging time than some of the others. But you go
[14:47] Speaker 8: by you know, Rock Center, the retail's packed, right, Obviously
[14:51] Speaker 8: you go down to Midtown South Chelsea retail packed, and
[14:54] Speaker 8: so what you're seeing in these are the neighborhoods where
[14:56] Speaker 8: people want to be. Grant Central has in terms of
[14:59] Speaker 8: you know, in Park Avenue one of the strongest retail
[15:01] Speaker 8: markets office markets in the country right now. And you
[15:05] Speaker 8: know it's also because of public transportation, right. I mean
[15:08] Speaker 8: we're building a three week on square.
[15:10] Speaker 2: Public transportation here at fifty ninth and lex I mean
[15:12] Speaker 2: there's something in.
[15:12] Speaker 4: Mexas I'm not getting something's wrong, Like it's hunted, it's mispriced,
[15:17] Speaker 4: and people were talking about Lexington Avenue at fifty eighth Street.
[15:20] Speaker 4: It doesn't get that much better than that, and this
[15:23] Speaker 4: seems been vacant and it's a big slug of space.
[15:26] Speaker 2: Right, It's not just a corner property, it's kind of
[15:27] Speaker 2: the whole block.
[15:28] Speaker 5: Yeah, look relief.
[15:30] Speaker 4: Scarlett and I were oute in San Francisco six months ago,
[15:34] Speaker 4: maybe for a real estate.
[15:36] Speaker 2: Yeah, and it was like everyone was bullish.
[15:39] Speaker 4: They were saying AI saved San Francisco. Literally, you know
[15:43] Speaker 4: it's now fully you can't get an apartment and all
[15:45] Speaker 4: the space is being leased like crazy. How's AI impacted
[15:48] Speaker 4: other markets? I think It's interesting when you think about
[15:50] Speaker 4: the AI.
[15:51] Speaker 8: There's compute power and there's people power yep, right, And
[15:54] Speaker 8: the compute power is happening all these data centers that
[15:56] Speaker 8: are billion built in these areas around the country with
[15:59] Speaker 8: energy is cheap.
[16:00] Speaker 5: You know.
[16:00] Speaker 8: People power is in the office buildings, right. And I
[16:03] Speaker 8: think what you're seeing in San Francisco is very focused
[16:05] Speaker 8: on tech. What you've seen in New York is an
[16:07] Speaker 8: incredible diverse ecosystem where you have this you know, you
[16:11] Speaker 8: have capital, you have creativity, you have collaboration, all combust
[16:15] Speaker 8: together through all these different industries, right. And so we're
[16:18] Speaker 8: seeing with our law firms seeing you in the capital markets.
[16:20] Speaker 8: I mean, think about this year in terms of you've
[16:22] Speaker 8: had the largest IPO, we had the largest M and A.
[16:26] Speaker 5: Wall Street earnings are off the roof. Right.
[16:28] Speaker 8: I just told you about the office market. I Sie
[16:30] Speaker 8: Nicks win the championship, right, we had the World Cup,
[16:32] Speaker 8: and in the energy in New York is unbelievable. But
[16:35] Speaker 8: AI is just like everything else, is a big driver
[16:38] Speaker 8: of the economic growth, either directly or indirectly with the
[16:41] Speaker 8: wealth effect, right, And that's something that we're getting a
[16:43] Speaker 8: great benefit and tailwind in New York.
[16:45] Speaker 2: For do you see Miami as a competitor to New
[16:49] Speaker 2: York for the for the financial sector?
[16:51] Speaker 5: You know, I don't think so.
[16:52] Speaker 8: I think that what you've seen over the last decade
[16:55] Speaker 8: is the financial sector, like a lot of other sectors,
[16:57] Speaker 8: have thought about a distributable workforce. So they need to
[17:00] Speaker 8: be in New York. This is where their customers, is
[17:02] Speaker 8: where the activity is. But they also can put people
[17:04] Speaker 8: in other parts of the country, whether it's Miami, whether
[17:06] Speaker 8: it's Dallas, whether it's Atlanta, and then when they go there,
[17:10] Speaker 8: you know, what you find is it does not have
[17:11] Speaker 8: the infrastructure to be able to be as competitive and
[17:15] Speaker 8: as New York.
[17:15] Speaker 6: Right.
[17:16] Speaker 5: It's it's you know, even there was an article.
[17:17] Speaker 8: This weekend that's now said that Miami costs more to
[17:20] Speaker 8: live than in New York, right, So it's you know,
[17:22] Speaker 8: it's it's going to get to a point where it's
[17:24] Speaker 8: going to have the same challenge of capacity issues that
[17:27] Speaker 8: we have in New York in places like Miami. I
[17:30] Speaker 8: think places like Dallas and Phoenix, and you know, they
[17:32] Speaker 8: actually have more capacity and that's why you're seeing other
[17:35] Speaker 8: firms announced, you know, relocating other operations there.
[17:39] Speaker 4: At Dallas has been a huge beneficiary and making grow.
[17:42] Speaker 2: That's the thing, right, there's there's no really, there's nothing
[17:44] Speaker 2: really hemming that market in.
[17:46] Speaker 8: Right where it's it's not the case in Miami, right
[17:47] Speaker 8: the congestion schools, everything's becomes a challenge there.
[17:52] Speaker 1: This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,
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