Amazon’s $38 Billion OpenAI Deal — And Why We Were Already Bullish on the Stock

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Prof G Markets 29 min 4 speakers 3 chapters transcribed 1 month ago
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What are today’s market movements and why do they matter?

Scott Galloway 0:00
Today's number 95,000. That's how many Japanese citizens are more than 100 years old. That makes Japan the second oldest region in the world, just behind DC. What do you market? If money is evil, then that building is hell. Show those up! The price I never at once and sell, sell! Welcome to Property Markets. I'm Ed Elson. It is November 4th. Let's check in on yesterday's Market Vitals. The SP and the Nasdaq rose to start the month, with gains from Amazon boosting the indices more on that later. The Dow declined as most stocks outside of big tech ended the day lower. The yield on tenure treasuries increased as the government shutdown reached its fourth week. Bitcoin sank amid a broad crypto sell-off, and finally, Palantir stock popped in after hours trading on better than expected earnings and strong.
Scott Galloway 0:58
on guidance for the current quarter. Okay, what else is happening? The Supreme Court will begin hearing arguments tomorrow on whether Trump can use emergency powers to impose tariffs. Trump's challengers will argue that the trade deficit is not an emergency and that tariff power belongs to Congress, not the White House. Meanwhile, the government will argue that the president does have broad authority to impose these tariffs, and that rolling back the tariffs would hurt the U.S. Three lower courts. Have already ruled against the administration. The Supreme Court will have until June to issue its decision, but most expect a ruling to come by January. While the justices consider whether any of this is actually legal.
Scott Galloway 1:41
The tariff announcements continue to roll in. On Thursday, Trump established this framework for a deal with President Xi Jinping. Just three weeks after threatening 100% tariffs on Chinese imports, the US agreed to reduce tariffs on Chinese goods by 10%. And in return, Beijing pledged a tougher crackdown on fentanyl. Meanwhile, new tariffs on medium and heavy-duty vehicles and buses took effect on Saturday, all told. Consumers are still facing an average effective tariff rate of 17.9%, the highest since nineteen thirty-four. Okay. Here with on the ground experience navigating these tariffs, we are speaking with Ryan Peterson, founder and CEO of Flexport, a global logistics and supply chain management company.
Scott Galloway 2:27
Ryan, thank you very much for joining us.
Ryan Petersen 2:30
Uh it's great to be here. Yeah. Something bad must be happening in Tariffs World when you call me.
Scott Galloway 2:34
Um yeah, exactly. You're the only one who's actually experiencing this and understanding what's really going on here. So uh obviously there's the Supreme Court, which is having the hearings on whether these tariffs are actually legal. That is ongoing. We will have a decision um by June. That is that is the rule. Uh perhaps we'll have one earlier. But last time we had. you on, it was about six months ago. We were talking about tariffs and the word you used to describe the business environment was paralysis. Where are we now? And is that still the word?
Ryan Petersen 3:12
Yeah, it's you know, and and the reason I said paralysis is it was just very difficult for people to make decisions because it was all changing so fast in terms of which countries were being hit with what duty rates. I think we have a lot more information than we did. When was that five four or five months ago? Um it's it's a little bit more clear. I mean, this latest deal with China where they've really lowered China down to the levels even below India and Brazil. It gives you, I guess, a fair amount of clarity. And by the way, it now shows you that being paralyzed before was the right answer. Because if you did move your production to India, then all of a sudden your your tariffs are higher than if you would have kept it in in China.
Ryan Petersen 3:47
So um people are still in a bit of a wait and see mode, maybe more than more than before. And a lot there's probably some degree of regret of people who acted coo too quickly who are now going, I know you know, I've met at least a couple of companies who sh started shifting manufacturing. to Indonesia and Vietnam and are now saying, wait, uh China it's not worth it.

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