Bloomberg Businessweek Weekend – January 31, 2026

Hosted by Carol Massar & Tim Stenovec

Episode Overview

This weekend edition of Bloomberg Businessweek offers a comprehensive recap of the week's major stories shaping the global economy, business, and financial markets. Hosts Carol Massar and Tim Stenovec dive deep into the first Federal Reserve meeting of the year, dissect the latest earnings from Big Tech, explore the red-hot aerospace and defense sector, chat with industry leaders—from manufacturing to shipping—and close with lighter coverage from the World Economic Forum in Davos, including an unexpected sunglasses sensation.

1. Federal Reserve Update & Market Sentiment

Segment Start: 01:50

• Fed Decision: The FOMC left interest rates unchanged after three meetings of rate cuts, indicating stabilization in the jobless rate and economic improvement.
• Chair Powell's Statement: Risks to the downside have lessened. The Fed focuses on normalization after data distortions from the shutdown.
  • “Downside risks to the economy have diminished and [Powell is] sidestepping January's controversies.” —Tim Stenovec [02:13]
• Market Response: General optimism about the US economy's resilience; big week for tech earnings as well.

2. Big Tech Earnings & AI Arms Race

Segment Start: 02:56

Key Companies: Meta, Microsoft, Tesla, Apple

• Meta: Beat projections, strong online ad business, major AI investments.
• Tesla: $2 billion investment in xAI (Elon Musk's AI startup), hinting at the company's deeper AI ambitions.
• Microsoft: Disappointed investors with record spending and slower cloud sales growth; debate over the payoff timeline for AI investments.

Guest: Angelo Zino, SVP & Equity Analyst, CFRA Research

Interview Start: 03:40

• On Microsoft Pullback:
  • "At this point in time... I'd be more inclined to tell investors to buy Microsoft on this dip... The valuation is very compelling here." [03:50]
  • Azure's growth was solid and the company continues to face supply constraints.
• On Concentration Risk (OpenAI):
  • “Today, [OpenAI] accounted for 45% of Microsoft’s backlog... extremely important part of AI for Microsoft.” [06:40]
  • Zino expects risk will decrease as Microsoft expands its AI customer base.
• On Tesla as a Tech Company:
  • "Musk is probably the biggest spender of AI in terms of GPU servers... the entire ecosystem Musk owns [is] extremely important to the evolution of AI.” [08:14]

Guest: Mark Gurman, Bloomberg Managing Editor for Global Consumer Tech

Interview Start: 09:17

• On Apple’s Blowout Quarter:
  • “This is a massive, massive, massive quarter. This is a home run. Their greatest quarter ever by orders of magnitude.” [09:29]
  • iPhone sales: Over $85B, with huge demand in China driven by new design.
• On AI at Apple:
  • “Apple absolutely needs to figure out its AI strategy. There needs to be an AI reckoning of some sort there. But they just bought themselves a very long time with this just insanely great quarter.” [09:29]
  • Apple is currently relying on partnerships (e.g., Google) for AI models, lacking internal solutions.

Key Quotes

• “The installed base, two and a half billion. The numbers are just beyond excellent.” —Mark Gurman [09:29]
• “Apple is partnering with the best partner they can... for now, is Google.” —Mark Gurman [12:29]
• “People buy the new designs. This is the first new design in half a decade. It got it done.” —Mark Gurman [13:23]

3. Aerospace, Airlines, and Defense Sector Analysis

Segment Start: 16:51

Recent Challenges:

• Extreme winter weather disruptions cost airlines hundreds of millions.
• Airlines focus on cost control, premium seat strategy, and adapting to macro shifts.

Guest: Sheila Kahyaoglu, Managing Director & Equity Research, Jefferies

Interview Start: 17:29

• On Airlines:

  • United led in premium seats, focusing on high-margin corporate flyers.
  • Southwest is pivoting strategy, adding premium options—controversial move given their traditional DNA.

• On Defense Sector:

  • “This is the first time that the five primes might no longer exist as five primes by the end of the Trump administration... more deconsolidation happening among the primes.” [20:48]
  • Global defense spending surging: “Tremendous growth internationally, 20%+ NATO budgets, Japan, Korea... Defense tech names like Firefly, Voyager... companies with stagnant revenues [now] seeing 30, 40% growth.” [22:01]
  • Executive pay in the spotlight, but sector remains bullish with massive demand for munitions/missiles.
  • Collaboration between traditional defense contractors and upstarts, e.g. Northrop and Kratos in autonomous vehicles.

• On Boeing:

  • Despite some short-term headwinds, the long-term cash flow outlook is strong.
  • “If this company can actually earn $10 billion of free cash flow, then it's quite compelling at its current valuation.” [26:41]
  • Potential catalyst: A long-awaited China order.

4. Manufacturing Sector Pulse

Segment Start: 28:17

Guest: Dan Florness, CEO, Fastenal (Industrial Supply)

• On CEO Responsibility in Crisis:
  • “As a leader, one of our tasks is to create some calm in the air.” [33:32]
• US Industrial Outlook:
  • Market “mixed;” Fastenal’s growth comes from market share gains, not a tailwind from the broader economy.
  • “We finished out the last half of 2025 with double digit growth. That's really an exercise of taking market share more than the wind is to our backs.” —Dan Florness [34:43]
• Data Centers as Growth Driver:
  • “Business linked to certain industries... data center is an example... business was on fire.” [36:13]
  • “It's real, it's real, it's real... business pickup... because of data centers.” [36:24]
• On Sourcing & Tariffs:
  • In response to tariffs, sourcing is increasingly multi-regional (Taiwan, India, Bangkok) instead of just China.
• US Manufacturing "Reshoring":
  • Less talk of offshoring than before—“that in itself is a win”.
• Cycle Description & AI:
  • The rise of AI and instant access to information is transformative for supply chain efficiency.
  • “The ability to improve the visibility for folks sourcing... is an incredible efficiency tool.” [42:29]

5. Macro Shipping & Commodities Insight

Segment Start: 46:13

Guest: Stamatis Tsantanis, Chairman & CEO, Synergy Maritime Holdings / United Maritime

• Geopolitical Instability:
  • Global situation less stable; multiple regions affected by conflict and military build-up.
• Commodities Rally:
  • Strong demand for raw materials (gold, silver, copper, aluminum, steel), driven by defense and infrastructure needs, plus AI/data center buildouts.
  • “It's not just good to have real estate or a house, but it's strategic, it's defense, it's military.” [48:23]
• Shipping Routes:
  • Avoiding Red Sea & Black Sea due to conflict; more diversions mean higher freight rates.
• US Shipbuilding:
  • US is not a significant shipbuilder compared to China, Japan; “It's just going to be a matter of cost and time.” [50:35]
• Global Trade:
  • Despite tariffs, global trade volume continues to rise due to infrastructure projects and demand for heavy commodities.
• China's Role:
  • China remains the world's leading importer of iron ore and producer of steel; ongoing large infrastructure investments.
• Summary of Global Economy:
  • “It will continue to be very, very challenging... But shipping has always been very agile to adapt... it's going to be fine.” [56:38]

6. Buy Now, Pay Later and Consumer Credit Trends

Segment Start: 59:35

Context: President Trump proposes a 10% cap on credit card interest rates; banks are exploring options. Buy Now, Pay Later (BNPL) services surge as an alternative.

Guest: Nick Molnar, Co-Founder & CEO, Afterpay

Interview Start: 60:26

• Business Model:
  • Afterpay disables accounts immediately upon missed payments—fundamental shift from traditional credit cards.
  • Merchants are primarily charged, not consumers.
  • "Our losses have consistently been below 1%, which is significantly lower than the broader financial services industry." [62:29]
• Changing Consumer Behavior:
  • Millennials and Gen Z prefer debit over credit, catalyzing BNPL growth.
  • Emphasis on “responsible” lending—if users miss payments, accounts are frozen, and limits reduced.
  • “You cannot keep shopping. You cannot revolve in debt. There's no compounding interest.” [66:42]
• Global Lending Reach:
  • Block (Afterpay parent) has lent over $200B globally across products.
• Competition & Regulation:
  • Anticipates more competition as fintech bank charters are approved.
  • Calls regulatory oversight a positive for the market.

7. Spotlight on Housing Affordability

Segment Start: 74:35

Guest: Jonathan Reckford, CEO, Habitat for Humanity

• Institutional Home Ownership:
  • Institutional investors own a small but locally significant share of homes (e.g., Atlanta, Charlotte).
  • The real issue: "We have a massive shortage, particularly at the low end of the market, starter homes." [75:44]
• Policy Suggestions:
  • Supply-side incentives & requirements (e.g., mixed-income housing), faster building permitting, zoning reform, incentives tied to lower-end home builds.
  • "The math is tough... the gap between what it costs to build a unit... and what a family can afford is the widest in history." [77:39]
  • “One in six families in America is spending over half their income on housing right now.” [79:25]

8. Davos Trend: Macron’s Sunglass Phenomenon

Segment Start: 79:42

Interview with Stefano Fulceri, CEO, iVision Tech (parent company of luxury French eyewear brand Henry Julien)

• The Macron Effect:
  • French President Emmanuel Macron’s blue aviator sunglasses went viral at Davos, causing the company’s website to crash and sales to spike.
  • “The effect is like a wow effect... we have sold in one day like the same quantity of one year of production of this model.” —Stefano Fulceri [81:07]
• Production Details:
  • Handcrafted, gold-laminated luxury frames; produced in France, ~€650 per pair.
• Supply Chain Resilience:
  • Company maintained domestic production for quality; sees “made in France” and “made in Italy” as key to luxury market.

Notable Quotes & Moments

• “Business linked to ... data centers ... was on fire ... it's real, it's real, it's real.”—Dan Florness, Fastenal [36:13]
• “If there's anyone that can continue to navigate and prosper in this environment, it's going to be Microsoft.” —Angelo Zino, CFRA [06:55]
• “The more visible the housing crisis becomes, the more urgent the need for supply-side solutions.” —Jonathan Reckford, Habitat for Humanity [75:44]
• “We have sold in one day like the same quantity of one year of production of this [sunglasses] model.” —Stefano Fulceri, iVision Tech [81:07]

Timestamps of Key Segments

• 01:50 — Fed Update & Market Outlook
• 02:56 — Big Tech Earnings & AI (Meta, Microsoft, Tesla), w/ Angelo Zino
• 09:17 — Apple Earnings Recap, w/ Mark Gurman
• 16:51 — Airlines, Aerospace, & Defense, w/ Sheila Kahyaoglu
• 28:17 — Manufacturing Pulse, w/ Dan Florness
• 46:13 — Global Shipping, Commodities, & China Trade, w/ Stamatis Tsantanis
• 59:35 — Consumer Credit & Buy Now, Pay Later, w/ Nick Molnar
• 74:35 — Housing Affordability Crisis, w/ Jonathan Reckford
• 79:42 — Macron’s Sunglasses Viral Trend, w/ Stefano Fulceri

Final Thoughts

This episode offers a panoramic view of today’s economic and business landscape—from monetary policy and Big Tech’s AI ambitions to the pulse of U.S. manufacturing and shifting global supply chains. With expert opinions, CEO insights, and stories both serious and lighthearted (including a presidential eyewear craze!), it's a must-listen for anyone seeking to stay ahead in the world of business and economics.