00:00:00
Speaker 1: Good afternoon, getting right down to business here. We're doing it live, doing more at four weekday afternoons, right after the Guy Benson Show and just before the seven ninety KBC News Blitz with my pal Randy Wang. Motech on Money. We're live on the ear on seven ninety KBC, streaming live online worldwide at KBC dot com and the on demand Motech of Money podcast KBC dot com, Apple, iTunes, YouTube, all your favorite podcast platform. Stocks wrapping up the week with a selloff coming off of record highs. The markets sold off sharply today as oil prices moved about one hundred and nine dollars of barrel inflation rearing its ugly head this week. President Trump's China trip ended without a breakthrough to reopen these trade of horror moves. The leaders of China and the US, the world's two biggest economies, wrapping up the US China Summit in Beijing today, but few indications that the President gained the Chinese leaders help to persuade Ron to reopen the strait of horror moves that crucial waterway. We also saw bond yields climb sharply today, with the yield and the ten year note now moving higher to a four point five to nine percent, and the thirty year yield also moved sharply higher to five point one three percent, the highest closing scene since July two thousand and seven, on the eve of the financial crisis. The now coming in for a closing loss today of five hundred and thirty seven points to forty nine thousand five twenty six, dipping back below fifty thousand, where it closed above fifty k yesterday. The SMP five hundred down ninety three, coming off its all time high it's seventy four to oh nine, pulling back from the seventy five hundred plus level which was achieved yesterday, and the Nasdaq down four hundred ten points back to twenty six thouy two twenty five, that index also coming off its all time high. The price of oil moving higher, reigniting concerns about inflation. RENCREWD in London moved up to around one hundred and nine dollars a bill. Following different messages from President Trump about the straight of horror moves, Today said in an interview with the Fox News after its first round of talks with the Chinese president, that the US does not need the waterway open even as energy inventories dwindle worldwide. He then told reporters that he and the President of China want the conflict in Iran to end. Federal Reserve meanwhile announced today that outgoing chair Jerome Palell would remain as the FED chare until Kevin Warsh, who was confirmed to a four year term as FED chair by the Senate this week, could be sworn in. It's not clear when Walsh will be sworn in. Senate confirmed Worsh's share on Wednesday. Here's a big story. The Wall Street Journal reports SpaceX is aiming to go public on June twelfth, next month, according to people familiar with the situation talking to the journal, setting the stage for what's expected to be the biggest IPO of all time. Elon Musk Rocket Company aimed to raise as much as eighty building or more, according to the Journal, and it's expected a list on the Nasdaq. One point advisors on the deal and expected it to debut honor around June seventeenth. The timing was recently accelerated, according to people talking to the journal. We'll talk more about that coming up here shortly. AI big subject on university canvases these days, as well as had business conferences such as the Milkin Institute Global Conference last week. I'll talk about that and more with the new president of the University of Southern California USC Biauden Kim will be joining us. The president of USC. Beyond Sue Kim, he's presiding over his first commencement ceremonies this week as leader of one of the world's top private research universities, home to twenty three schools and more than forty six thousand students and forty seven hundred faculty, including the Kech School of Medicine at USC. USC President Beyong Sue Kim will be joining us later this hour. Also this hour, California State Senate Candaday Brian Goldsmith, the Democrat who's received the endorsements of the Honorable Nathan Hockman, the La County DA and Rick Caruso in the District twenty four, which includes the fire ravaged areas of the Palisades in Malibu as well as a white area of West La County. Brian Goldsmith will be joining us live later this hour, but first, on your Money, the markets, the economy, and the whole Now joining us live Brian Perry, veteran investment expert and market strategist at Brian Perry Investing dot com and author of the twenty five percent Cash Machine. Brian, great to have you with us to wrap up this epic week. Give us your assessment of things here this afternoon.
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Speaker 2: Thank you, Frank, and welcome to all your listeners here on a Friday afternoon where the market did have a shakeout today based upon what you noted was the kind of realization that inflation is sticky, the higher from where the economys said forecast, as well as oil prices here popping higher here essentially as a result of But you know, this Trump trip here where people you know, the White House and Trump and all his entourage you're talking to, how you know what a wonderful trip was. I would basically call it amateur night at the Chinese fire drill. I just didn't see any major major progress here, especially in the form of policy. You know, they need to bring over, you know, Peter Navarro and Leithheiser and these other guys here to talk about, you know, the Seventh Sins of China, one of that. You know, in fact, we got a tongue lashing about staying you know, hands off on Taiwan going forward here by their national security advisors. So there was a lot of glad handing and a lot of you know, quote they brought over sixteen and the biggest hanchos in the world CEOs and really we got two hundred Boeing planes out of the whisper numbers five hundred. So that came in waylight, which is you know, probably why Boning m was down nine bucks today. And you know, we sold a lot of grain, you know, through Carville, but not much else. You know, it was a chamber of commerce entourage that really didn't get a whole lot done. And at the same time, it's been the first time almost a decade that the president has been over there, so that was that was good from a diplomatic standpoint, but quite frankly, you know, to walk away without a deal on how to disengage I Ran. You know, China's getting oil. You know, they're getting through all these shadow fleets around the world. Uh, you know everyone should be highly aware of that. They're not short on oil. You know, they're getting it through all manner of third party channels. So uh, that's where the market meets the where the road is is uh, you know, if if there's oil out there to be sold, it will find this way to China. And that's what's happening. So there's there's a lot of stuff that didn't really get explained very well on all of this, and we're kind of handcuffed by a lot of the machinations of the oil markets around the world. So there's uh, you know, I think the strait is going to remain closed here for some time. This this two two month ceasefire has allowed a RAN to you know, re replant a number of their underwater and mind and things like that, and also reload their caves with these surfaces to you know, ship missiles and things like that. So there's it's messy. It's just real messy here. And I think this is where the market's kind of like, well, this is going to drag on. We didn't get any real definitive answers and that's really caught us some things now moving forward, though, you know, the market had a great week AI wise because we had great numbers out of Cisco, Okay really catalyzed the as here because that's a big name dove stock and it's normally been a stodgy name, but it really you know, it hike up in one considerably higher. So the AI trade is on because that is the trade that is driving the market. Fund managers are glombing onto this around the world because the visibility is becoming more and more readable from the standpoint of the spending as well as the monetization's going on there. People are starting to show up with returns on their investments in AI and it gives way to you know, further further upside for the market because you know, the big tech, big tech dominates the waitings for the major averages here, so you know, it's it's magnified right now. Five materials came out last night, great numbers, you know, great visibility. So these are these are heavy duty bell Weather names that are saying all is good. And you have Bill Lackman coming in today, you know, releasing his thirteen a f saying he bought five point six five million shais of Microsoft two point one billion dollars worth of stock down here. So software caught a bid today, being just you know, crushed for the last several weeks, and so that's all good. And then you've got Apple, you know, hitting new all time highs here and the big news there is they're bringing a new guy, you know, to replace you know, Tim Cook and and this kind of product guy, you know, John Tannaris or turn Us. He's a you know, the next big thing for Apple and people should really hold onto this and grab this is you know, home robotics. Okay, these guys are going to go. It's so big into the home robotic area. Whereas you know you've got Tesla doing humanoids, factory uh, you know, Robotaxi things I got and other things. But Apple, I think their next big phase of major growth is in is in the home robotic area. And we want to be able to identify this picks and shovels names in the next couple of three weeks that are going to be you know, supplying them with the right you know parts in order to to magnify that particular trade. This is really big. And then you had to you know, Seebrist coming out this week, your biggest ip of the year for software. Their chips settled back. Came out of three eighty now it's two eighty. It was priced at one fifty five. Great ipo. You know it can It shows you that there is still, you know, huge appetite for AI driven trades. And then I guess, you know, really you've got in the video here breaking out to the upside here. If the stock gets up the two forty six RANC, that's going to be a six trillion dollar company here, and I think it's well on its way there. You have some price targets up to three fifty this week, and I guess most notably and if I can throw the scenery before jump or break the earnings revisions here by SMP and facts that and others, they have been raised by twenty percent growth this year. That's just phenomenal, okay. And you know, for the next three to four months we may see a choppy and sloppy atmosphere because there's a lot of digestion and congestion here with higher rates and the higher inflation and all that. But ultimately earnings drive the market. And if we are on a trend here where twenty percent growth is in the cards Foredestin pe vomited a year end, then I I think we can see the market trade kind of fifteen percent higher by New Year's Day.
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Speaker 1: And you're alive with Brian Perry veteran investment expert and market strategist Brian Perry, investing dot com and author of the twenty five percent Cash Machine. Thank you for that excellent assessment. Here looks like we had some winners and losers. You mentioned Apple hitting a record high today up more than three dollars at three hundred twenty three cents per share, Boeing pulling back nearly nine to two twenty and change. Tim Cook was part of that delegation with President Trump in China, and so was Boeing. So we had winners and losers coming off of this this big summit here. And what about what about some of the other executives to travel with the president? Do you see any other winners and losers in that group?
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Speaker 2: Well, you've got you know, I think I think enough Qualcom had a huge move here, and that's your Southern cal you know, you know Darling there, you know, in terms of chips and you know, autonomous driving things like that, smart codes went upsolude two ft two sixties pulled that you're to like the two hundred area here, that's want to keep an eye on here. It's filling this whole big gap underneath. So that looks pretty interesting here. The Memory stocks finally, you know, saw some air come out of the balloon. The Micron. You know, you had Sanjay Matuiro go there from Micron, and again you know, Christiano I'm on from Qua fam is there, Tim cap Tim Cooks from Apple, everything from black Rock, Steve Schwartzman from Blackstone. I still don't trust the private equity market so much, especially with the raps moving up here. A lot of what they do is in floating rates, so you got to be careful and not to you know, be careful about how you buy into the kkrs and the areas capitals and the Blackstones and the car you know, Carlo groups and all that in the world. Goldman Sachs, you know, it looks pretty good on a pullback here. You had David Solomon over there and uh and Jane Fraser of City Group. Those those are good, but bank you know, higher rates that are not great for banks, but but certainly the the investment banking business this year is just enormous, you know, basically for Goldman Sachs, whether it's in Tropic you know, uh, SpaceX as well as Open Open AI possibly coming up this year as well. So and Cebus which just came. So there's a lot of big money, but that also soaks up a lot of capital, you know, from the other other areas in the market. So when you have a big IPO wave, you know, Franklin, you tend to see money kind of slash around. You're looking to grab a trade in these big in these big i pos and then you know, and so it's pulled some other areas here. But by and large, uh, the market looks on good footing because at the end of the day, the earnings are there and back in. Just to give people a reference point back in nineteen ninety six before it started to get really you know, frocky, before the dot com boom. Interest the ten year bonds at six percent, so you know, because the economy is really cooking. So the market can survive on five to six percent rates and still continue to elevate. It depends why the earnings the visibility of earnings is just one year, two years, or three years or further out right now, I think the market's trying to visualize a two year lookout period for earnings here and it does see that with the AI trade that you know, most people think we're just in the third fourth inning of this larger secular boot.
00:13:17
Speaker 1: See you tonight, read about it tomorrow, but here right now in motec on Money Live on the air with investment ext for Brian Peririe, and of course Elon Musk was also on that trip to China. We see Tesla today pulling back more than twenty one dollars at four to twenty two and change. And that brings us to the breaking news of this afternoon. According to Wall Street Journal, SpaceX now aiming to go public on June twelfth, according to people familiar with the situation talking to the journal, setting the stage for what's expected to be the biggest initial public offering, not only of this year, but of all time. How's this shaping up and how are you preparing for that?
00:13:50
Speaker 2: Okay, there's two backdoor ways to play this, Frank, I think it's going to be enormous. I think it's going to trade higher right out of the gate, no matter where they price it. I just think that people are absolutely it's going to be an every index fund in every EUTF out there. It's just an instant addition to the S and P five hundred. They basically own that space for now. And they are actually you know, accelerating their lead in the whole space launch business. And also they own Starlink, you know, under this whole thing as well, under their umbrella. So it's it's it's massive, and it's going to be just even bigger here and the market is going to it's a huge appetite for it. So we talked about this in a couple of pieces. There were the Baron Partners Fund, which is b ptrxx Bravo Papa Tango, Romeo x Ray. That's a mutual fund that where thirty two percent of their assets are invested in early rounds SpaceX fundraisings, okay, and then twenty eight percent is actually in Tesla stock. So half the companies, half the mutual funds holdings are in SpaceX and Tesla, which I think is a great one two punch. And then there's only six other holdings in there traded like Bill Lackman's you know, Persian Square. Extremely concentrated, and they're way to go baptist Is through EchoStar, which is you know, people know that by way of Dish Network and other types of you know, conventional television. But they had an enormous amount of what was called Spectrum, and they sold all that spectrum to Elon, Musk and Starlink as well as to AT and T to have you know, celestial terrestrial cell phone service. And in exchange for that, the Ecostar management took fifty two million shares of SpaceX in exchange for the spectrum. So they traded that off. And now that's about an eight billion dollar position for EchoStar, and it comprises roughly, I'm going to say sixty percent of their total company assets right now. It's what driving the bus for Ecostar. It's almost SATs sat to endorse that. Just this past week and a half, Fidelity you just took a ten percent position, ten point six percent position in Ecostar. And the last time I saw Fidelity take a steak in anything personally, it was it was when they took a fifty million dollars a fifty million dollars stake in Tesla. No, I'm sorry, it was a five billion dollars take in Tesla when the stock was trading at fifty bucks. So they have a deep bench research wise, they obviously think this is a great proxy to play. The SpaceX frank from a standpoint of looking for a pure place.
00:16:36
Speaker 1: All right before let you up think here, Brian Perry, any specific places, any other places where you are putting money now and or taking it off the table.
00:16:44
Speaker 2: Well, you know, I don't have Bill Ackman's networth, but I was buying Microsoft before he was, so I'll take that one. I started buying that across the board from my accounts back. The evaluations are really at generational lows right now for Microsoft. That's really good. You can also take look at, you know, those companies that are also servicing these data centers here with you know, power systems, because that's really important. It's coming called Selarious Energy Infrastructure symbols SEI, Sierra Echo India and the trades around seventy eight dollars is near the high of the year, but great numbers. They're there. Their revenues are going to accelerate from thirty five percent this year to forty seven percent next year. You want to be in those types of injury. You have accelerating top line growth, you know, because that that that manages everything in the bottom line, and and so that looks really good and beautiful charge chart. I'll break that in again. Uh s at s you know echostarbon buying that and also a company called n Light which is laser l A Sr. Started picking up this year just this week. Uh, this is you know, in the business of drone and warfare, which has taken over the entire warfare scheme of things here globally speaking. N Light l A s R. They create laser systems that shoot down drones and they have highly specialized system here which that you know, the Pentagon is fast grabbing onto your stop trades around seventy five traded up to eighty five eighty six on its earnings here just last week pulled back here. I think it's a great entry point for people to want to anti drone play in the aerospace defense place. Coming off all things in Europe are not doing great here because higher inflation, higher rates, hired, certainly higher and lower lower business conditions here. I came off of Emerson Electric here. I liked it, but it's got too much exposure to Europe and I think people just really need to stay in the US here. US Center dat sets here with an AI you know, bling to it if you will, that have you know, really good forward guidance here, and they're putting it out there whether it's you know, you know, like we said, today's Cisco was a great endorsement of this larger trend.
00:18:50
Speaker 1: Rebbie, Brian, thank you very much for taking the call. Wrap up the zepic week and what's been a better a week for the market and the pullback here today, Brian Perry, venter investment expert and market strategist Brianperryinvesting dot com, author the twenty five percent Cash Machine. Brian, thank you very much, have a great weekend and look forward to speaking with again very soon.
00:19:09
Speaker 2: Okay, Frank, always great to be with you guys. Thanks a much.
00:19:11
Speaker 1: Guys, thank you very much. Sleven ninety KBC. No tack on money continues here in seven ninety KBC. Good afternoon, twenty twenty sixth of Beentner year for USC with the election of a new president and commencement ceremonies this week. And joining us now is the President of the University of Southern California, Beyong Sue Kim, mister President, thank you very much for taking the call on this a big week here today.
00:19:34
Speaker 2: Great to be here with you, Frank, wonderful to have you with us.
00:19:37
Speaker 1: First of all, tell us how it's going with all the commencement ceremonies this week.
00:19:41
Speaker 3: It's great. We have tons of people on campus right now. Last night we had our main commencement event at the coliseum, forty six thousand attendees, over eight thousand students.
00:19:53
Speaker 4: We barely had enough.
00:19:55
Speaker 3: Seats for everyone, and I'll have to say, I have to say that the atmosphere was raucus and joyous. We had Gustavo Dudamel as our commencement speaker, and this, as you know, is his last year as the Los Angeles Philharmonics music director before he heads off to New York, and he was able to just give a beautiful recounting of his time in Los Angeles and some of the lessons he's learned about the power of music to unite and uplift communities, which is really exactly what we're trying to do here at USC.
00:20:27
Speaker 1: That's wonderful, and the coliseums, such a majestic location, must have been absolutely spectacular. Landside, it was in.
00:20:35
Speaker 3: Fact metaphorically and literally because we had a fireworks show at the end. We had a drone show the Torch coming up, so it was a lot of fun for all of the families and their.
00:20:50
Speaker 1: Students, wonderful and pure. It was no accident that he was selected to give the commencement speech. I understand that you also have a musical background, well.
00:21:00
Speaker 3: Nothing like his, but I do play the cello, and I was absolutely delighted to be able to play in the marching band for the first time under Maestro Didemo's direction at the end of the program, and it was a little bit of a surprise for the guests, but it was a lot of fun, at least for me, and hopefully it was a real delight as well for the members of the marching band and all.
00:21:26
Speaker 2: Of the guests.
00:21:27
Speaker 1: That's wonderful on the air with the President of the University of Southern California beyond Sue Kim and congratulations on your election as a president of USC this year. You went through a selection process with more than one thousand candidates. Tell us about your priorities as president of USC and how you achieved this tremendous pannacle here.
00:21:51
Speaker 4: Well, thank you, Frank.
00:21:53
Speaker 3: I'm extremely excited and honored and humbled to be at the Helm. This is, as you know, such a great university and we impact the society in the communities that we live in. In so many different and profound ways, from our medical system, from to the research that we do, to the students that we educate into future leaders of the country. So it's a tremendous obligation. But I'm really really excited about elevating USC's academic mission are relevance, the way that we can uplift the community around us and really try to provide thought leadership during what I think is an absolutely pivotal time for universities and the education that we provide. We're going through this period where AI is transforming society, it's transforming the job market, and that's scary, it's concerning, and it also presents a huge opportunity for places like us to lead the way and thinking about how do we make sure that even as we leverage the opportunities from AI and saving lives and developing new drugs keeping us more secure, how do we also at the same time make sure that we're in preserving our mission of teaching critical thinking, of making sure that humans remain in the driver's seat with respect to their bodies, with respect to technologies that promise to do so many things. So it's a really really interesting time. It's an important time, and it's a huge honor to be here.
00:23:38
Speaker 1: It was wonderful seeing you and the excellent USC team at the Milican Institute Global Conference in Beverly Hills last week. I also saw the Dean of the USC Annaberg School for Communications, Will Obey, who spoke there as you did. You were one of the featured speakers. Tell us what were some of the big takeaways for you at that tremendous business conference, which largely focused on artificial intelligence this year.
00:24:03
Speaker 3: So I was on a panel this year with some other university leaders and we were talking about the future of education and trying to really go beyond the current moment and think five years, ten years out, twenty years, even what does education look like?
00:24:18
Speaker 4: What challenges do we need to meet? And you're right, Frank, AI was a.
00:24:24
Speaker 3: Theme of the conference because it is having such a profound impact, and again, I think there's a real opportunity that it creates for universities that are future facing and strategic to think about how do we make sure that we're educating students not only for that first job, but with the kinds of enduring characters, traits and skills that they're going to need to be able to get the job after that and the job after that as AI changes so much of the job market. And more than that, Frank, how do we ensure that we are educating students with the civic values and the community values so that they're going to actually be able to make a difference in the world. This is a time where people seem to be able to speak more than they're able to listen, and at USC we're really leaning into the concept of open dialogue of when you encounter someone that has a different point of view, a different perspective on the world, instead of shunning that person, avoiding that person, canceling that person. Instead, how do we encourage all members of our community to actually lean into those differences, listen to.
00:25:42
Speaker 4: Other people and try to learn from them. That's what it might view a university should be all about.
00:25:47
Speaker 1: On the air with the presidents of the University of selling California USC beyond to Kim, that was wonderful seeing you with all the business leaders there at the Milican Institute Global Conference, and I hope this will be one of many conversations and moving forward. As you addressed the business audience, I was with Lloyd grif last evening with Grief and Company, whose name is on the Lloyd Grife Center for Entrepreneurial Studies at the USC Marshall School of Business, who's a big fan of yours. What is your message to the business community in connecting with the USA home of the Trojans.
00:26:19
Speaker 3: Well, Lloyd is a wonderful Trojan, And what I would say is that with respect to AI, I do think that AI is going to change many jobs. But speaking of entrepreneurship, it also creates so many opportunities for people to now overcome technical challenges and really pursue their creative imaginations in terms of new business ideas, new creative ideas.
00:26:45
Speaker 4: Part of the reason why I thought that Gustavo Dudamel was.
00:26:48
Speaker 3: Such a perfect speaker last night is that he reminded us of the enduring power and importance of the arts in bringing people together, in promoting listening as you have to do orchestra and so as a wonderful message of unity at a time when there is a lot of political conflict and disagreement.
00:27:10
Speaker 4: The other thing that was really exciting.
00:27:12
Speaker 3: To announce at the Milkan Institute, Frank, was the receipt of a two hundred million dollar gift we recently received from Mary and Mark Stevens, wonderful philanthropists and supporters of USC, and the focus of that gift is not just simply on AI, but it's on how we can use AI at USC to make a positive difference in the world, whether that's in protecting our security, whether that is in curing more diseases, whether it's in empowering young business entrepreneurs, or whether it's even in the artistic professions such as cinematic arts and other areas. And we're really excited about using this incredible gift to go out and recruit the best talent across the world to really enhance our amazing faculty and make sure that we are leading the way not just in terms of using.
00:28:11
Speaker 4: AI, but how do we use it and teach it in a way that's going to really advance the human values that we care the most about.
00:28:20
Speaker 1: That's so wonderful. We so appreciate your time today, mister President, and it's always an honor to guest lecture there at USC, and it was an honor of a lifetime. We have taught the news radio course there at USC for ten years, single handedly upholding a radio instruction there at USC for those years, largely due to the great Professor Joe Salzman who's still at the USC Edenburg School for Communication and Ken. Thank you enough for your time today, and I want to extend immediately another invitation to keep us updated on what's happening there at your great campus. And we wish you all the very very best in your presidency. And thank you very very much for joining us here today.
00:28:58
Speaker 4: Thanks for everything you do. Frank think it was a pleasure.
00:29:00
Speaker 1: Thank you very much, mister president. That is beyond Sue Kim, the President of USC. Here on Motech on Money on seven ninety KBC. Motack on Money continues here seven ninety KABC. Good afternoon. The California State Senate District twenty four race in Los Angeles shaping up as the most expensive and closely watched state legislative contents this year. The coastal Los Angeles County district homed to one hundreds of thousands of people who were displaced by the firestorm last year, including Malibu, Santa Monica, as well as areas of Torrans. The Senate seat representing a wide area of West Los Angeles County being vacated by Democratic Senator Ben Allen. Among those seeking that seat, California State Senate candidate Brian Goldsmith, Democrat, has received the endorsements of the Honorable Nathan Hockman, the district attorney here in Los Angeles, as well as Rick Caruso, and business groups including the Asian Business Association PACK in California. Firefighters District twenty four includes the fire Ravagh areas of the Palisades in Malibu, as well as a wide area of West Los Angeles County. And joining us live now is Brian Goldsmith. Thank you very much for taking the calling this afternoon, Frank.
00:30:05
Speaker 5: It's an honor to be on your show.
00:30:07
Speaker 1: Wonderful to connect with you here and addressing the business audience. Tell us about yourself and your business experience and why you want that important spot here.
00:30:17
Speaker 5: Absolutely well. I had the experience of starting three small businesses in California, and I know how difficult, complicated, and expensive we make it, often unnecessarily so, with many layers of rules, fines, fees, taxes, and regulations. So I think one of the things we have to do in order to make it easier and more affordable to live here is to simplify how it is for businesses to survive here.
00:30:45
Speaker 1: On the air with Brian Goldsmith and Brian tell us A obviously representing that area that was impacted by the firestorms, and they're calling it a second disaster, the slow pace of the recovery there. What would you do to accelerate the recovery in the horrifically damaged areas there following the firestorm last year.
00:31:05
Speaker 5: Well, one of the things I keep hearing from folks in the Palisades in Malibu is just the lack of leadership at all levels of government. Frankly, there are some exceptions like Tracy Park and Ben Allen who tried very hard to be advocates for these communities. But we need a joint local state authority that can cut through the bureaucracy and make decisions to speed permitting, to solve problems, to coordinate logistics. We also have an insurance mess and a public health mess on top of the rebuilding challenge. So I would be a relentless advocate for folks in these communities, and I would look to create systems that actually get things done as we rebuild.
00:31:48
Speaker 1: Certainly, Rick Ruso has taking the lead there with the steadfast LA initiative. What do you see as working there? Certainly his initiative probably the most high profile among the initiatives to get the rebuild going there. But would you like to see some other things done there? And do you support the Steadfast to LA initiative?
00:32:07
Speaker 4: Oh?
00:32:07
Speaker 5: I think Rick has acted heroically in trying to bring together businesses, nonprofits and government to get things done. I think the rebuilding of the Palisades Park would not have happened but for his leadership and that of Steadfast LA. And it's a model of the kind of public private partnership that we need to see a lot more of because there are so many examples of government failure around California. You know, these issues and communities are too important to leave the decisions only to the public sector. We need to get the private sector of the nonprofit sector involved as well.
00:32:46
Speaker 1: And we've been hearing about the budget issues in Sacramento. It looks like this so called building airs tax might be on the ballotier this year. What are your thoughts on that one.
00:32:57
Speaker 5: I disagree with it. I hope it's I think it is the wrong answer to the right question. The right question is how do we fix our tax system so that it's less boom and bust, so that it provides the revenue the state needs to fund basic public services. But it's the wrong answer because it creates a short term boost and revenue at a huge long term cost, because it pushes a lot of people and businesses out of the state. We've already seen more than a trillion dollars of capital leave California, and that has a profound effect on employment. We have the highest unemployment in America and on our budget. So it's one of these you know, cut your nose to spite your face kind of policies that may sound good, but on a second look and a third look, it's very clear that it's the wrong answer.
00:33:50
Speaker 1: Certainly, crime and homelessness a big issue on the West Side and indeed throughout the area, and certainly the homeless situation in Santa Monica getting a lot of attention in venicebe each and of course throughout the Los Angeles area. But how would you tackle the issue of crime and homelessness, especially as relates to businesses here in the Los Angeles area.
00:34:10
Speaker 5: Well, Frank, I think public safety is the first responsibility of government. I think for too long on homelessness. We've been content to manage the problem rather than solve it. And we have models from not so far away San Jose, which has seen a thirty percent drop and unsheltered homelessness over the last three years. San Francisco, which is seen a twenty five percent drop in unsheltered homelessness. We know what works, which is scale up safe, clean, dignified shelter at a fraction of the cost of permanent support of housing. Scale up services from groups that actually know what they're doing, like Downtown Women's Center, Hope, the Mission, Union, Rescue Mission and others. Give them the resources to provide the drug treatment and the mental health services that are critical, and then enforce our anti camping laws. It is a tragedy when somebody spends even one night on the street, and we should not accept it. Here in California.
00:35:09
Speaker 1: You'd be also representing the area of Beverly Hills, right and the look a Beverly Hills is doing with the business district there. There are no encampments, no people sleeping in residential areas and business areas in Beverly Hills. As we've heard many times, the homeless have a choice of either moving on accepting help or getting picked up. They're not going to tolerate neighborhoods and business areas being destroyed by that kind of activity. Would you like to see that expand.
00:35:40
Speaker 5: Well, I think the Supreme Court has been very clear that as long as shelter is available, and I think they ought to be individual units so that people feel safe with a private bathroom and a door that locks, people can bring their pets. We should enforce our anti camping laws and it should no longer be an option to sleep on the streets. It is terrible for people who do so. We lose six human beings every day in La County due to homelessness. This is not sustainable and we should stop the policies that permit it.
00:36:13
Speaker 1: On the air Live with Brian Goldsmith, candidate for the Senate seat here in California District twenty four. And you've received the endorsement I see of Nathan Hockman, the tough on crime at DA who took over from the soft on crime at DA, the previous one on the crime front. What would you like to see done to give the streets back to the people.
00:36:34
Speaker 5: Well, I think Nathan has struck exactly the right balance. You know, I broke with many in my party and I supported Nathan over George Gascon because I thought he failed.
00:36:44
Speaker 2: To do his job.
00:36:45
Speaker 5: You know, the pendulum swung too far from mass incarceration to decarceration and defunding the police, which I never supported. Nathan has the right approach, which is, you know, for first time non violent offenders, youth offend, you look for opportunities for rehabilitation, to fight recidivism, and to give people a path to a productive life. But for professional gang members, repeat criminals, people who are executing home invasions, smash and grabs, we should have zero tolerance and those people ought to be held accountable with consequences that are clear and sure.
00:37:24
Speaker 1: Another hot topic bringing Hollywood back to Hollywood. Your thoughts on bringing more production back to Hollywood.
00:37:30
Speaker 5: Well, this is a critical issue for the district and indeed for the whole state. You know, for many years, Northern California blocks the expansion of the film and TV tax credit. We finally got step one done last year, growing the credit from about three hundred and thirty million to seven hundred and fifty million. That was necessary, but insufficient. We've got to do even more we've got to make the credit uncapped so that people know, productions know they're going to get it.
00:37:58
Speaker 2: We've got to.
00:37:58
Speaker 5: Apply it to above the line as well as below the line, so that we're truly competitive with other states. And then we need a federal credit. You know, other countries have national credits. VC needs to pass something like this and I would lobby very aggressively to get that done as well.
00:38:14
Speaker 1: Ran Goldsmith, thank you very much for taking the call here. We wish you all the best. That is California State Senate candidate Brian Goldsmith, Democrat, who's seeking to take the Senate seats in the District twenty four vacated by Democratic Senator Ben Allen. Thank you very much for joining us live this afternoon.
00:38:32
Speaker 5: Thanks very much for having me.
00:38:33
Speaker 1: Frank, thank you very much, and stay tuned now for the seven ninety KBC News Blitz with my buddy Randy Wang, and I'll be back with more at four on Monday afternoon, right here on Motech on Money on seven ninety KBC stocks pulling back today from record highs. We'll be back again on Monday right here in seven ninety KBC eight
Speaker 1: Good afternoon, getting right down to business here. We're doing it live, doing more at four weekday afternoons, right after the Guy Benson Show and just before the seven ninety KBC News Blitz with my pal Randy Wang. Motech on Money. We're live on the ear on seven ninety KBC, streaming live online worldwide at KBC dot com and the on demand Motech of Money podcast KBC dot com, Apple, iTunes, YouTube, all your favorite podcast platform. Stocks wrapping up the week with a selloff coming off of record highs. The markets sold off sharply today as oil prices moved about one hundred and nine dollars of barrel inflation rearing its ugly head this week. President Trump's China trip ended without a breakthrough to reopen these trade of horror moves. The leaders of China and the US, the world's two biggest economies, wrapping up the US China Summit in Beijing today, but few indications that the President gained the Chinese leaders help to persuade Ron to reopen the strait of horror moves that crucial waterway. We also saw bond yields climb sharply today, with the yield and the ten year note now moving higher to a four point five to nine percent, and the thirty year yield also moved sharply higher to five point one three percent, the highest closing scene since July two thousand and seven, on the eve of the financial crisis. The now coming in for a closing loss today of five hundred and thirty seven points to forty nine thousand five twenty six, dipping back below fifty thousand, where it closed above fifty k yesterday. The SMP five hundred down ninety three, coming off its all time high it's seventy four to oh nine, pulling back from the seventy five hundred plus level which was achieved yesterday, and the Nasdaq down four hundred ten points back to twenty six thouy two twenty five, that index also coming off its all time high. The price of oil moving higher, reigniting concerns about inflation. RENCREWD in London moved up to around one hundred and nine dollars a bill. Following different messages from President Trump about the straight of horror moves, Today said in an interview with the Fox News after its first round of talks with the Chinese president, that the US does not need the waterway open even as energy inventories dwindle worldwide. He then told reporters that he and the President of China want the conflict in Iran to end. Federal Reserve meanwhile announced today that outgoing chair Jerome Palell would remain as the FED chare until Kevin Warsh, who was confirmed to a four year term as FED chair by the Senate this week, could be sworn in. It's not clear when Walsh will be sworn in. Senate confirmed Worsh's share on Wednesday. Here's a big story. The Wall Street Journal reports SpaceX is aiming to go public on June twelfth, next month, according to people familiar with the situation talking to the journal, setting the stage for what's expected to be the biggest IPO of all time. Elon Musk Rocket Company aimed to raise as much as eighty building or more, according to the Journal, and it's expected a list on the Nasdaq. One point advisors on the deal and expected it to debut honor around June seventeenth. The timing was recently accelerated, according to people talking to the journal. We'll talk more about that coming up here shortly. AI big subject on university canvases these days, as well as had business conferences such as the Milkin Institute Global Conference last week. I'll talk about that and more with the new president of the University of Southern California USC Biauden Kim will be joining us. The president of USC. Beyond Sue Kim, he's presiding over his first commencement ceremonies this week as leader of one of the world's top private research universities, home to twenty three schools and more than forty six thousand students and forty seven hundred faculty, including the Kech School of Medicine at USC. USC President Beyong Sue Kim will be joining us later this hour. Also this hour, California State Senate Candaday Brian Goldsmith, the Democrat who's received the endorsements of the Honorable Nathan Hockman, the La County DA and Rick Caruso in the District twenty four, which includes the fire ravaged areas of the Palisades in Malibu as well as a white area of West La County. Brian Goldsmith will be joining us live later this hour, but first, on your Money, the markets, the economy, and the whole Now joining us live Brian Perry, veteran investment expert and market strategist at Brian Perry Investing dot com and author of the twenty five percent Cash Machine. Brian, great to have you with us to wrap up this epic week. Give us your assessment of things here this afternoon.
00:04:15
Speaker 2: Thank you, Frank, and welcome to all your listeners here on a Friday afternoon where the market did have a shakeout today based upon what you noted was the kind of realization that inflation is sticky, the higher from where the economys said forecast, as well as oil prices here popping higher here essentially as a result of But you know, this Trump trip here where people you know, the White House and Trump and all his entourage you're talking to, how you know what a wonderful trip was. I would basically call it amateur night at the Chinese fire drill. I just didn't see any major major progress here, especially in the form of policy. You know, they need to bring over, you know, Peter Navarro and Leithheiser and these other guys here to talk about, you know, the Seventh Sins of China, one of that. You know, in fact, we got a tongue lashing about staying you know, hands off on Taiwan going forward here by their national security advisors. So there was a lot of glad handing and a lot of you know, quote they brought over sixteen and the biggest hanchos in the world CEOs and really we got two hundred Boeing planes out of the whisper numbers five hundred. So that came in waylight, which is you know, probably why Boning m was down nine bucks today. And you know, we sold a lot of grain, you know, through Carville, but not much else. You know, it was a chamber of commerce entourage that really didn't get a whole lot done. And at the same time, it's been the first time almost a decade that the president has been over there, so that was that was good from a diplomatic standpoint, but quite frankly, you know, to walk away without a deal on how to disengage I Ran. You know, China's getting oil. You know, they're getting through all these shadow fleets around the world. Uh, you know everyone should be highly aware of that. They're not short on oil. You know, they're getting it through all manner of third party channels. So uh, that's where the market meets the where the road is is uh, you know, if if there's oil out there to be sold, it will find this way to China. And that's what's happening. So there's there's a lot of stuff that didn't really get explained very well on all of this, and we're kind of handcuffed by a lot of the machinations of the oil markets around the world. So there's uh, you know, I think the strait is going to remain closed here for some time. This this two two month ceasefire has allowed a RAN to you know, re replant a number of their underwater and mind and things like that, and also reload their caves with these surfaces to you know, ship missiles and things like that. So there's it's messy. It's just real messy here. And I think this is where the market's kind of like, well, this is going to drag on. We didn't get any real definitive answers and that's really caught us some things now moving forward, though, you know, the market had a great week AI wise because we had great numbers out of Cisco, Okay really catalyzed the as here because that's a big name dove stock and it's normally been a stodgy name, but it really you know, it hike up in one considerably higher. So the AI trade is on because that is the trade that is driving the market. Fund managers are glombing onto this around the world because the visibility is becoming more and more readable from the standpoint of the spending as well as the monetization's going on there. People are starting to show up with returns on their investments in AI and it gives way to you know, further further upside for the market because you know, the big tech, big tech dominates the waitings for the major averages here, so you know, it's it's magnified right now. Five materials came out last night, great numbers, you know, great visibility. So these are these are heavy duty bell Weather names that are saying all is good. And you have Bill Lackman coming in today, you know, releasing his thirteen a f saying he bought five point six five million shais of Microsoft two point one billion dollars worth of stock down here. So software caught a bid today, being just you know, crushed for the last several weeks, and so that's all good. And then you've got Apple, you know, hitting new all time highs here and the big news there is they're bringing a new guy, you know, to replace you know, Tim Cook and and this kind of product guy, you know, John Tannaris or turn Us. He's a you know, the next big thing for Apple and people should really hold onto this and grab this is you know, home robotics. Okay, these guys are going to go. It's so big into the home robotic area. Whereas you know you've got Tesla doing humanoids, factory uh, you know, Robotaxi things I got and other things. But Apple, I think their next big phase of major growth is in is in the home robotic area. And we want to be able to identify this picks and shovels names in the next couple of three weeks that are going to be you know, supplying them with the right you know parts in order to to magnify that particular trade. This is really big. And then you had to you know, Seebrist coming out this week, your biggest ip of the year for software. Their chips settled back. Came out of three eighty now it's two eighty. It was priced at one fifty five. Great ipo. You know it can It shows you that there is still, you know, huge appetite for AI driven trades. And then I guess, you know, really you've got in the video here breaking out to the upside here. If the stock gets up the two forty six RANC, that's going to be a six trillion dollar company here, and I think it's well on its way there. You have some price targets up to three fifty this week, and I guess most notably and if I can throw the scenery before jump or break the earnings revisions here by SMP and facts that and others, they have been raised by twenty percent growth this year. That's just phenomenal, okay. And you know, for the next three to four months we may see a choppy and sloppy atmosphere because there's a lot of digestion and congestion here with higher rates and the higher inflation and all that. But ultimately earnings drive the market. And if we are on a trend here where twenty percent growth is in the cards Foredestin pe vomited a year end, then I I think we can see the market trade kind of fifteen percent higher by New Year's Day.
00:10:04
Speaker 1: And you're alive with Brian Perry veteran investment expert and market strategist Brian Perry, investing dot com and author of the twenty five percent Cash Machine. Thank you for that excellent assessment. Here looks like we had some winners and losers. You mentioned Apple hitting a record high today up more than three dollars at three hundred twenty three cents per share, Boeing pulling back nearly nine to two twenty and change. Tim Cook was part of that delegation with President Trump in China, and so was Boeing. So we had winners and losers coming off of this this big summit here. And what about what about some of the other executives to travel with the president? Do you see any other winners and losers in that group?
00:10:43
Speaker 2: Well, you've got you know, I think I think enough Qualcom had a huge move here, and that's your Southern cal you know, you know Darling there, you know, in terms of chips and you know, autonomous driving things like that, smart codes went upsolude two ft two sixties pulled that you're to like the two hundred area here, that's want to keep an eye on here. It's filling this whole big gap underneath. So that looks pretty interesting here. The Memory stocks finally, you know, saw some air come out of the balloon. The Micron. You know, you had Sanjay Matuiro go there from Micron, and again you know, Christiano I'm on from Qua fam is there, Tim cap Tim Cooks from Apple, everything from black Rock, Steve Schwartzman from Blackstone. I still don't trust the private equity market so much, especially with the raps moving up here. A lot of what they do is in floating rates, so you got to be careful and not to you know, be careful about how you buy into the kkrs and the areas capitals and the Blackstones and the car you know, Carlo groups and all that in the world. Goldman Sachs, you know, it looks pretty good on a pullback here. You had David Solomon over there and uh and Jane Fraser of City Group. Those those are good, but bank you know, higher rates that are not great for banks, but but certainly the the investment banking business this year is just enormous, you know, basically for Goldman Sachs, whether it's in Tropic you know, uh, SpaceX as well as Open Open AI possibly coming up this year as well. So and Cebus which just came. So there's a lot of big money, but that also soaks up a lot of capital, you know, from the other other areas in the market. So when you have a big IPO wave, you know, Franklin, you tend to see money kind of slash around. You're looking to grab a trade in these big in these big i pos and then you know, and so it's pulled some other areas here. But by and large, uh, the market looks on good footing because at the end of the day, the earnings are there and back in. Just to give people a reference point back in nineteen ninety six before it started to get really you know, frocky, before the dot com boom. Interest the ten year bonds at six percent, so you know, because the economy is really cooking. So the market can survive on five to six percent rates and still continue to elevate. It depends why the earnings the visibility of earnings is just one year, two years, or three years or further out right now, I think the market's trying to visualize a two year lookout period for earnings here and it does see that with the AI trade that you know, most people think we're just in the third fourth inning of this larger secular boot.
00:13:17
Speaker 1: See you tonight, read about it tomorrow, but here right now in motec on Money Live on the air with investment ext for Brian Peririe, and of course Elon Musk was also on that trip to China. We see Tesla today pulling back more than twenty one dollars at four to twenty two and change. And that brings us to the breaking news of this afternoon. According to Wall Street Journal, SpaceX now aiming to go public on June twelfth, according to people familiar with the situation talking to the journal, setting the stage for what's expected to be the biggest initial public offering, not only of this year, but of all time. How's this shaping up and how are you preparing for that?
00:13:50
Speaker 2: Okay, there's two backdoor ways to play this, Frank, I think it's going to be enormous. I think it's going to trade higher right out of the gate, no matter where they price it. I just think that people are absolutely it's going to be an every index fund in every EUTF out there. It's just an instant addition to the S and P five hundred. They basically own that space for now. And they are actually you know, accelerating their lead in the whole space launch business. And also they own Starlink, you know, under this whole thing as well, under their umbrella. So it's it's it's massive, and it's going to be just even bigger here and the market is going to it's a huge appetite for it. So we talked about this in a couple of pieces. There were the Baron Partners Fund, which is b ptrxx Bravo Papa Tango, Romeo x Ray. That's a mutual fund that where thirty two percent of their assets are invested in early rounds SpaceX fundraisings, okay, and then twenty eight percent is actually in Tesla stock. So half the companies, half the mutual funds holdings are in SpaceX and Tesla, which I think is a great one two punch. And then there's only six other holdings in there traded like Bill Lackman's you know, Persian Square. Extremely concentrated, and they're way to go baptist Is through EchoStar, which is you know, people know that by way of Dish Network and other types of you know, conventional television. But they had an enormous amount of what was called Spectrum, and they sold all that spectrum to Elon, Musk and Starlink as well as to AT and T to have you know, celestial terrestrial cell phone service. And in exchange for that, the Ecostar management took fifty two million shares of SpaceX in exchange for the spectrum. So they traded that off. And now that's about an eight billion dollar position for EchoStar, and it comprises roughly, I'm going to say sixty percent of their total company assets right now. It's what driving the bus for Ecostar. It's almost SATs sat to endorse that. Just this past week and a half, Fidelity you just took a ten percent position, ten point six percent position in Ecostar. And the last time I saw Fidelity take a steak in anything personally, it was it was when they took a fifty million dollars a fifty million dollars stake in Tesla. No, I'm sorry, it was a five billion dollars take in Tesla when the stock was trading at fifty bucks. So they have a deep bench research wise, they obviously think this is a great proxy to play. The SpaceX frank from a standpoint of looking for a pure place.
00:16:36
Speaker 1: All right before let you up think here, Brian Perry, any specific places, any other places where you are putting money now and or taking it off the table.
00:16:44
Speaker 2: Well, you know, I don't have Bill Ackman's networth, but I was buying Microsoft before he was, so I'll take that one. I started buying that across the board from my accounts back. The evaluations are really at generational lows right now for Microsoft. That's really good. You can also take look at, you know, those companies that are also servicing these data centers here with you know, power systems, because that's really important. It's coming called Selarious Energy Infrastructure symbols SEI, Sierra Echo India and the trades around seventy eight dollars is near the high of the year, but great numbers. They're there. Their revenues are going to accelerate from thirty five percent this year to forty seven percent next year. You want to be in those types of injury. You have accelerating top line growth, you know, because that that that manages everything in the bottom line, and and so that looks really good and beautiful charge chart. I'll break that in again. Uh s at s you know echostarbon buying that and also a company called n Light which is laser l A Sr. Started picking up this year just this week. Uh, this is you know, in the business of drone and warfare, which has taken over the entire warfare scheme of things here globally speaking. N Light l A s R. They create laser systems that shoot down drones and they have highly specialized system here which that you know, the Pentagon is fast grabbing onto your stop trades around seventy five traded up to eighty five eighty six on its earnings here just last week pulled back here. I think it's a great entry point for people to want to anti drone play in the aerospace defense place. Coming off all things in Europe are not doing great here because higher inflation, higher rates, hired, certainly higher and lower lower business conditions here. I came off of Emerson Electric here. I liked it, but it's got too much exposure to Europe and I think people just really need to stay in the US here. US Center dat sets here with an AI you know, bling to it if you will, that have you know, really good forward guidance here, and they're putting it out there whether it's you know, you know, like we said, today's Cisco was a great endorsement of this larger trend.
00:18:50
Speaker 1: Rebbie, Brian, thank you very much for taking the call. Wrap up the zepic week and what's been a better a week for the market and the pullback here today, Brian Perry, venter investment expert and market strategist Brianperryinvesting dot com, author the twenty five percent Cash Machine. Brian, thank you very much, have a great weekend and look forward to speaking with again very soon.
00:19:09
Speaker 2: Okay, Frank, always great to be with you guys. Thanks a much.
00:19:11
Speaker 1: Guys, thank you very much. Sleven ninety KBC. No tack on money continues here in seven ninety KBC. Good afternoon, twenty twenty sixth of Beentner year for USC with the election of a new president and commencement ceremonies this week. And joining us now is the President of the University of Southern California, Beyong Sue Kim, mister President, thank you very much for taking the call on this a big week here today.
00:19:34
Speaker 2: Great to be here with you, Frank, wonderful to have you with us.
00:19:37
Speaker 1: First of all, tell us how it's going with all the commencement ceremonies this week.
00:19:41
Speaker 3: It's great. We have tons of people on campus right now. Last night we had our main commencement event at the coliseum, forty six thousand attendees, over eight thousand students.
00:19:53
Speaker 4: We barely had enough.
00:19:55
Speaker 3: Seats for everyone, and I'll have to say, I have to say that the atmosphere was raucus and joyous. We had Gustavo Dudamel as our commencement speaker, and this, as you know, is his last year as the Los Angeles Philharmonics music director before he heads off to New York, and he was able to just give a beautiful recounting of his time in Los Angeles and some of the lessons he's learned about the power of music to unite and uplift communities, which is really exactly what we're trying to do here at USC.
00:20:27
Speaker 1: That's wonderful, and the coliseums, such a majestic location, must have been absolutely spectacular. Landside, it was in.
00:20:35
Speaker 3: Fact metaphorically and literally because we had a fireworks show at the end. We had a drone show the Torch coming up, so it was a lot of fun for all of the families and their.
00:20:50
Speaker 1: Students, wonderful and pure. It was no accident that he was selected to give the commencement speech. I understand that you also have a musical background, well.
00:21:00
Speaker 3: Nothing like his, but I do play the cello, and I was absolutely delighted to be able to play in the marching band for the first time under Maestro Didemo's direction at the end of the program, and it was a little bit of a surprise for the guests, but it was a lot of fun, at least for me, and hopefully it was a real delight as well for the members of the marching band and all.
00:21:26
Speaker 2: Of the guests.
00:21:27
Speaker 1: That's wonderful on the air with the President of the University of Southern California beyond Sue Kim and congratulations on your election as a president of USC this year. You went through a selection process with more than one thousand candidates. Tell us about your priorities as president of USC and how you achieved this tremendous pannacle here.
00:21:51
Speaker 4: Well, thank you, Frank.
00:21:53
Speaker 3: I'm extremely excited and honored and humbled to be at the Helm. This is, as you know, such a great university and we impact the society in the communities that we live in. In so many different and profound ways, from our medical system, from to the research that we do, to the students that we educate into future leaders of the country. So it's a tremendous obligation. But I'm really really excited about elevating USC's academic mission are relevance, the way that we can uplift the community around us and really try to provide thought leadership during what I think is an absolutely pivotal time for universities and the education that we provide. We're going through this period where AI is transforming society, it's transforming the job market, and that's scary, it's concerning, and it also presents a huge opportunity for places like us to lead the way and thinking about how do we make sure that even as we leverage the opportunities from AI and saving lives and developing new drugs keeping us more secure, how do we also at the same time make sure that we're in preserving our mission of teaching critical thinking, of making sure that humans remain in the driver's seat with respect to their bodies, with respect to technologies that promise to do so many things. So it's a really really interesting time. It's an important time, and it's a huge honor to be here.
00:23:38
Speaker 1: It was wonderful seeing you and the excellent USC team at the Milican Institute Global Conference in Beverly Hills last week. I also saw the Dean of the USC Annaberg School for Communications, Will Obey, who spoke there as you did. You were one of the featured speakers. Tell us what were some of the big takeaways for you at that tremendous business conference, which largely focused on artificial intelligence this year.
00:24:03
Speaker 3: So I was on a panel this year with some other university leaders and we were talking about the future of education and trying to really go beyond the current moment and think five years, ten years out, twenty years, even what does education look like?
00:24:18
Speaker 4: What challenges do we need to meet? And you're right, Frank, AI was a.
00:24:24
Speaker 3: Theme of the conference because it is having such a profound impact, and again, I think there's a real opportunity that it creates for universities that are future facing and strategic to think about how do we make sure that we're educating students not only for that first job, but with the kinds of enduring characters, traits and skills that they're going to need to be able to get the job after that and the job after that as AI changes so much of the job market. And more than that, Frank, how do we ensure that we are educating students with the civic values and the community values so that they're going to actually be able to make a difference in the world. This is a time where people seem to be able to speak more than they're able to listen, and at USC we're really leaning into the concept of open dialogue of when you encounter someone that has a different point of view, a different perspective on the world, instead of shunning that person, avoiding that person, canceling that person. Instead, how do we encourage all members of our community to actually lean into those differences, listen to.
00:25:42
Speaker 4: Other people and try to learn from them. That's what it might view a university should be all about.
00:25:47
Speaker 1: On the air with the presidents of the University of selling California USC beyond to Kim, that was wonderful seeing you with all the business leaders there at the Milican Institute Global Conference, and I hope this will be one of many conversations and moving forward. As you addressed the business audience, I was with Lloyd grif last evening with Grief and Company, whose name is on the Lloyd Grife Center for Entrepreneurial Studies at the USC Marshall School of Business, who's a big fan of yours. What is your message to the business community in connecting with the USA home of the Trojans.
00:26:19
Speaker 3: Well, Lloyd is a wonderful Trojan, And what I would say is that with respect to AI, I do think that AI is going to change many jobs. But speaking of entrepreneurship, it also creates so many opportunities for people to now overcome technical challenges and really pursue their creative imaginations in terms of new business ideas, new creative ideas.
00:26:45
Speaker 4: Part of the reason why I thought that Gustavo Dudamel was.
00:26:48
Speaker 3: Such a perfect speaker last night is that he reminded us of the enduring power and importance of the arts in bringing people together, in promoting listening as you have to do orchestra and so as a wonderful message of unity at a time when there is a lot of political conflict and disagreement.
00:27:10
Speaker 4: The other thing that was really exciting.
00:27:12
Speaker 3: To announce at the Milkan Institute, Frank, was the receipt of a two hundred million dollar gift we recently received from Mary and Mark Stevens, wonderful philanthropists and supporters of USC, and the focus of that gift is not just simply on AI, but it's on how we can use AI at USC to make a positive difference in the world, whether that's in protecting our security, whether that is in curing more diseases, whether it's in empowering young business entrepreneurs, or whether it's even in the artistic professions such as cinematic arts and other areas. And we're really excited about using this incredible gift to go out and recruit the best talent across the world to really enhance our amazing faculty and make sure that we are leading the way not just in terms of using.
00:28:11
Speaker 4: AI, but how do we use it and teach it in a way that's going to really advance the human values that we care the most about.
00:28:20
Speaker 1: That's so wonderful. We so appreciate your time today, mister President, and it's always an honor to guest lecture there at USC, and it was an honor of a lifetime. We have taught the news radio course there at USC for ten years, single handedly upholding a radio instruction there at USC for those years, largely due to the great Professor Joe Salzman who's still at the USC Edenburg School for Communication and Ken. Thank you enough for your time today, and I want to extend immediately another invitation to keep us updated on what's happening there at your great campus. And we wish you all the very very best in your presidency. And thank you very very much for joining us here today.
00:28:58
Speaker 4: Thanks for everything you do. Frank think it was a pleasure.
00:29:00
Speaker 1: Thank you very much, mister president. That is beyond Sue Kim, the President of USC. Here on Motech on Money on seven ninety KBC. Motack on Money continues here seven ninety KABC. Good afternoon. The California State Senate District twenty four race in Los Angeles shaping up as the most expensive and closely watched state legislative contents this year. The coastal Los Angeles County district homed to one hundreds of thousands of people who were displaced by the firestorm last year, including Malibu, Santa Monica, as well as areas of Torrans. The Senate seat representing a wide area of West Los Angeles County being vacated by Democratic Senator Ben Allen. Among those seeking that seat, California State Senate candidate Brian Goldsmith, Democrat, has received the endorsements of the Honorable Nathan Hockman, the district attorney here in Los Angeles, as well as Rick Caruso, and business groups including the Asian Business Association PACK in California. Firefighters District twenty four includes the fire Ravagh areas of the Palisades in Malibu, as well as a wide area of West Los Angeles County. And joining us live now is Brian Goldsmith. Thank you very much for taking the calling this afternoon, Frank.
00:30:05
Speaker 5: It's an honor to be on your show.
00:30:07
Speaker 1: Wonderful to connect with you here and addressing the business audience. Tell us about yourself and your business experience and why you want that important spot here.
00:30:17
Speaker 5: Absolutely well. I had the experience of starting three small businesses in California, and I know how difficult, complicated, and expensive we make it, often unnecessarily so, with many layers of rules, fines, fees, taxes, and regulations. So I think one of the things we have to do in order to make it easier and more affordable to live here is to simplify how it is for businesses to survive here.
00:30:45
Speaker 1: On the air with Brian Goldsmith and Brian tell us A obviously representing that area that was impacted by the firestorms, and they're calling it a second disaster, the slow pace of the recovery there. What would you do to accelerate the recovery in the horrifically damaged areas there following the firestorm last year.
00:31:05
Speaker 5: Well, one of the things I keep hearing from folks in the Palisades in Malibu is just the lack of leadership at all levels of government. Frankly, there are some exceptions like Tracy Park and Ben Allen who tried very hard to be advocates for these communities. But we need a joint local state authority that can cut through the bureaucracy and make decisions to speed permitting, to solve problems, to coordinate logistics. We also have an insurance mess and a public health mess on top of the rebuilding challenge. So I would be a relentless advocate for folks in these communities, and I would look to create systems that actually get things done as we rebuild.
00:31:48
Speaker 1: Certainly, Rick Ruso has taking the lead there with the steadfast LA initiative. What do you see as working there? Certainly his initiative probably the most high profile among the initiatives to get the rebuild going there. But would you like to see some other things done there? And do you support the Steadfast to LA initiative?
00:32:07
Speaker 4: Oh?
00:32:07
Speaker 5: I think Rick has acted heroically in trying to bring together businesses, nonprofits and government to get things done. I think the rebuilding of the Palisades Park would not have happened but for his leadership and that of Steadfast LA. And it's a model of the kind of public private partnership that we need to see a lot more of because there are so many examples of government failure around California. You know, these issues and communities are too important to leave the decisions only to the public sector. We need to get the private sector of the nonprofit sector involved as well.
00:32:46
Speaker 1: And we've been hearing about the budget issues in Sacramento. It looks like this so called building airs tax might be on the ballotier this year. What are your thoughts on that one.
00:32:57
Speaker 5: I disagree with it. I hope it's I think it is the wrong answer to the right question. The right question is how do we fix our tax system so that it's less boom and bust, so that it provides the revenue the state needs to fund basic public services. But it's the wrong answer because it creates a short term boost and revenue at a huge long term cost, because it pushes a lot of people and businesses out of the state. We've already seen more than a trillion dollars of capital leave California, and that has a profound effect on employment. We have the highest unemployment in America and on our budget. So it's one of these you know, cut your nose to spite your face kind of policies that may sound good, but on a second look and a third look, it's very clear that it's the wrong answer.
00:33:50
Speaker 1: Certainly, crime and homelessness a big issue on the West Side and indeed throughout the area, and certainly the homeless situation in Santa Monica getting a lot of attention in venicebe each and of course throughout the Los Angeles area. But how would you tackle the issue of crime and homelessness, especially as relates to businesses here in the Los Angeles area.
00:34:10
Speaker 5: Well, Frank, I think public safety is the first responsibility of government. I think for too long on homelessness. We've been content to manage the problem rather than solve it. And we have models from not so far away San Jose, which has seen a thirty percent drop and unsheltered homelessness over the last three years. San Francisco, which is seen a twenty five percent drop in unsheltered homelessness. We know what works, which is scale up safe, clean, dignified shelter at a fraction of the cost of permanent support of housing. Scale up services from groups that actually know what they're doing, like Downtown Women's Center, Hope, the Mission, Union, Rescue Mission and others. Give them the resources to provide the drug treatment and the mental health services that are critical, and then enforce our anti camping laws. It is a tragedy when somebody spends even one night on the street, and we should not accept it. Here in California.
00:35:09
Speaker 1: You'd be also representing the area of Beverly Hills, right and the look a Beverly Hills is doing with the business district there. There are no encampments, no people sleeping in residential areas and business areas in Beverly Hills. As we've heard many times, the homeless have a choice of either moving on accepting help or getting picked up. They're not going to tolerate neighborhoods and business areas being destroyed by that kind of activity. Would you like to see that expand.
00:35:40
Speaker 5: Well, I think the Supreme Court has been very clear that as long as shelter is available, and I think they ought to be individual units so that people feel safe with a private bathroom and a door that locks, people can bring their pets. We should enforce our anti camping laws and it should no longer be an option to sleep on the streets. It is terrible for people who do so. We lose six human beings every day in La County due to homelessness. This is not sustainable and we should stop the policies that permit it.
00:36:13
Speaker 1: On the air Live with Brian Goldsmith, candidate for the Senate seat here in California District twenty four. And you've received the endorsement I see of Nathan Hockman, the tough on crime at DA who took over from the soft on crime at DA, the previous one on the crime front. What would you like to see done to give the streets back to the people.
00:36:34
Speaker 5: Well, I think Nathan has struck exactly the right balance. You know, I broke with many in my party and I supported Nathan over George Gascon because I thought he failed.
00:36:44
Speaker 2: To do his job.
00:36:45
Speaker 5: You know, the pendulum swung too far from mass incarceration to decarceration and defunding the police, which I never supported. Nathan has the right approach, which is, you know, for first time non violent offenders, youth offend, you look for opportunities for rehabilitation, to fight recidivism, and to give people a path to a productive life. But for professional gang members, repeat criminals, people who are executing home invasions, smash and grabs, we should have zero tolerance and those people ought to be held accountable with consequences that are clear and sure.
00:37:24
Speaker 1: Another hot topic bringing Hollywood back to Hollywood. Your thoughts on bringing more production back to Hollywood.
00:37:30
Speaker 5: Well, this is a critical issue for the district and indeed for the whole state. You know, for many years, Northern California blocks the expansion of the film and TV tax credit. We finally got step one done last year, growing the credit from about three hundred and thirty million to seven hundred and fifty million. That was necessary, but insufficient. We've got to do even more we've got to make the credit uncapped so that people know, productions know they're going to get it.
00:37:58
Speaker 2: We've got to.
00:37:58
Speaker 5: Apply it to above the line as well as below the line, so that we're truly competitive with other states. And then we need a federal credit. You know, other countries have national credits. VC needs to pass something like this and I would lobby very aggressively to get that done as well.
00:38:14
Speaker 1: Ran Goldsmith, thank you very much for taking the call here. We wish you all the best. That is California State Senate candidate Brian Goldsmith, Democrat, who's seeking to take the Senate seats in the District twenty four vacated by Democratic Senator Ben Allen. Thank you very much for joining us live this afternoon.
00:38:32
Speaker 5: Thanks very much for having me.
00:38:33
Speaker 1: Frank, thank you very much, and stay tuned now for the seven ninety KBC News Blitz with my buddy Randy Wang, and I'll be back with more at four on Monday afternoon, right here on Motech on Money on seven ninety KBC stocks pulling back today from record highs. We'll be back again on Monday right here in seven ninety KBC eight
