00:00Gridlock.
00:01Gridlock.
00:01Are we rooting for gridlock in 2027?
00:06Oh, that's a great question.
00:07In Washington or just broadly speaking?
00:09Broadly speaking, but in Washington, the David Gurukhut.
00:13I think we're facing a lot of gridlock here as we get closer and closer to the election.
00:16Look, there's talk here of a government shutdown in October of this year.
00:19We just had this vote on a war powers resolution in the House.
00:22We saw four Republicans come over to join their Democrats on the other side of the aisle.
00:25I think that people are aware of the fact that given the pressures that we're seeing overseas,
00:30now manifest the domestic pressures as well.
00:32It's unlikely that we're going to see a lot of movement in Washington.
00:35Well, speaking of domestic pressures, tariffs are back, David.
00:38And despite President Trump's claim that other countries pay for it,
00:41the duties are all basically borne by American companies and at the end of the day, American consumers.
00:46Absolutely right.
00:47So we see the president using Section 301 of that Trade Act of 1974 to impose 10 to 12.5
00:52percent tariffs on 60 countries
00:54and more perhaps are on the way here.
00:56Look, it's an interesting moment at which this is happening.
00:58You're going to talk about inflation, I'm sure, over the course of the show.
01:01We know that these are going to be inflationary.
01:03It is a choice, to say the least, that the administration is doing this as they look at this war
01:06in the Middle East
01:07widening and lasting longer than they thought it would be.
01:10I think it's still incumbent upon them to try to make the sale to explain to the American people
01:14why this is the route that they're going down.
01:16These latest tariffs on human rights grounds, at least in name,
01:20and we'll see sort of if the American people are going to work around that.
01:22I think so many people are numbed, were benumbed into the summer.
01:25They're accustomed to a lot of things flying around, absolutely.
01:27But it is a picture of economic anxiety.
01:30And you see it in the price action.
01:31And, Nikki, it's fascinating to see how people respond, especially young people,
01:35which is a real picture of extremes, right?
01:37You've got financial nihilism on the one end,
01:39and then you've got what some people are calling retirement maxing on the other end.
01:43Yes, we took a look this week at this cohort of Gen Z who are not the ones on prediction
01:50markets,
01:51who are not the ones taking these YOLO bets in the stock market,
01:54but instead they are, and we use this with our tongue in cheek a little bit,
01:58retirement maxing.
01:59And they're putting away money into savings rather than spending in the moment,
02:04sometimes even ignoring their credit card bills.
02:07Most of them not yet.
02:09I'm shocked.
02:09Because we're talking about people under 30.
02:12I'm shocked.
02:12That will take care of your excess income real quick.
02:16But, yeah, people putting into IRAs and their 401Ks as much as they can
02:20because they don't know what's coming ahead.
02:23Right.
02:23And this idea that they're not even spending on themselves
02:25because they're just saving in every way.
02:28Stacey, you have written or you've written about
02:30and you've talked about on your podcast this idea
02:32that Americans are spending less time on enjoying themselves,
02:36on spending for themselves recreational products.
02:38There's something called funflation taking place.
02:40Yes, there's a little bit of funflation taking place because things have gotten so expensive.
02:45Obviously, since the pandemic, we've spent a lot more money on experiences rather than just goods.
02:51We've tended to spend on services.
02:53Demand for services is up.
02:55Prices for services are up.
02:56Even going to see the Odyssey this weekend could cost a lot of money.
03:00The tickets for IMAX are on sale on the secondary market for several hundred dollars.
03:04But this, I mean, if you have kids, for instance, just going out for ice cream,
03:08just going out, you know, to try to movie and pizza can easily go into the hundreds of dollars.
03:13You're a top tick, $200, and Brooklyn one's going to the movies, right?
03:18You have a whole meal at the movies.
03:19The whole meal and all that.
03:20Stacey, I've got to ask you, I talked to Nashville today.
03:23I talked to Austin, Texas.
03:24You know Boise cold with Micron and the boom there.
03:28I mean, part of this nation has explosively boomed cities, don't they?
03:33Oh, yeah.
03:34Yeah, I grew up in Boise, and right now everyone's talking about the Micron millionaires.
03:38So Micron is based in Boise.
03:39Should we congratulate you?
03:42I tragically am not a Micron millionaire.
03:45You escaped too early.
03:46It's true.
03:47I did.
03:47I went into journalism.
03:48I don't know what I was thinking.
03:50But yeah, I mean, it's one of the biggest employers in the state.
03:53It's been making ships since 1972, a lot of ups and downs.
03:57But now, thanks to AI, I mean, it's just, it's going nuts.
04:01I want to get this in.
04:02It's just too important.
04:03We do personal finance.
04:04We do retirement.
04:05We do wealth management.
04:06And Nikki Waller and Suzanne Woolley have, without question, the essay of the day.
04:11It comes to Marlon over it, Fidelity.
04:13I was shocked at the chart, the jump condition in health care costs for retirees.
04:19Yeah, it is absolutely.
04:20It's been rising for years.
04:22And what we're seeing is that if you are retiring this year, your health costs that you will pay out
04:28of pocket.
04:28If you're a couple, it's up to $371,000.
04:31That is an almost 8% jump from last year.
04:35It is supposed to be almost like free, like $15,000.
04:39Yeah, no, that doesn't happen anymore.
04:40And if you're a Gen Xer, like David Gura and myself, you're also thinking about paying for your parents' care
04:45and saving for your kids' college tuition at the same time.
04:48So this just adds to it.
04:49We'll be working forever.
04:50Incredibly daunting.
04:51Yes, I agree.
04:52Okay.
04:53David Gura, thank you so much.
04:54Thank you for coming in today.
04:55I'm happy to be here.
04:55Thank you, Tom.
04:56Next time, bring something from Red's up in Maine with you.
04:59Stacey Vanek-Smith, Nikki Waller, thank you so much as well.
05:03You know, I look at this, and I know the theme of the show should be called Bloomberg Inflation.
05:08It should be the title of the show.
05:09You know, we could do a rebrand.
05:11But this has been a really stressful week.
05:14I mean, I'm sorry.
05:15Wednesday, it was, like, vibrating.
05:17I know, but it's calmed down a little bit here on this Friday.
05:20And, you know, next week, we've got a lot to look ahead to, especially this hyperscaler earnings, because it looks
05:24like AI is driving this entire economy right now.
05:27And everybody involved with Bloomberg Money, Retirement, Wealth Management, they all own it, don't they?
05:31But we've got a lot of applause here.
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