AI Cost Reality Check Hits Tech Stocks as Apple Hikes Price

Summary

Bloomberg Intelligence Podcast — Episode Summary

Episode: "AI Cost Reality Check Hits Tech Stocks as Apple Hikes Price"
Date: June 26, 2026
Hosts: Paul Sweeney, Scarlet Fu, Ed Ludlow

---

Episode Overview

This episode delves into how the burgeoning costs of AI development and ongoing memory chip shortages are disrupting technology stocks, most notably leading to Apple and other consumer tech companies raising product prices. The hosts and expert guests also examine the downstream effects in the semiconductor industry, the challenging labor reset at Volkswagen, Boeing's cautious reentry into the Chinese market, and succession dynamics at JPMorgan Chase.

---

Key Discussion Points & Insights

1. Memory Chip Shortage & Apple’s Price Hikes

Timestamps: 01:51 – 05:55

• Memory Shortage Becoming Tangible:
  Ed Ludlow introduces the intensifying global memory chip shortage, noting, “Apple's raising prices for a lot of stuff now. It's starting to hit home…” (01:51)
• Pricing Power Shifts:
  Market Analyst explains the dramatic market psychology shift:

  “We've gone from a place...where Micron is absolutely surging ... to now looking at it from ... the seller...to now the buyer...the concern is the next step is we come full circle and demand for consumer electronics is dampened because of high prices.” (02:23)

• Data Center Demand Draining Supply:
  The analyst describes how AI-related data centers are capturing nearly all available high bandwidth memory, squeezing out consumer electronics:

  “For every Nvidia GPU you have, there are eight corresponding high bandwidth memory chips. ... The net result is that the consumer electronics industry ... have no choice but to pay that higher pricing in order to secure supply.” (03:33)

• Outlook:
  Micron predicts the shortage will last at least 18 months, creating uncertainty over how much more consumer demand can sustain higher prices.
• A Cyclical Industry with a Twist:
  Ludlow draws a colorful economic analogy:

  "When we had higher egg prices ... my genius solution was to just make more chickens. But that logic I don't think is going to apply to memory chips, will it?” (04:47)
  The analyst agrees, noting the risk of overbuild versus under-supply in a sector now less sensitive to consumer cycles but more at the whims of massive, stable datacenter demand.

---

2. OpenAI IPO Delay & AI Sector Capital Flows

Timestamps: 05:55 – 06:54

• OpenAI to Stay Private:
  The analyst shares that OpenAI, after a confidential filing, likely won’t IPO before 2027, aiming to retain flexibility as a private firm:

  “It’s consistent with what OpenAI said ... they would stay private for quite a long time because there are things that they want to do that are more achievable as a private company than a public company.” (06:03)

• Market Context:
  The conversation situates OpenAI’s decision amid a busy IPO and bond market and notes the company is unfazed if rival Anthropic goes public first.

---

3. Volkswagen’s Massive Cuts Amid Global Pressures

Timestamps: 09:19 – 13:09

• Struggles on Multiple Fronts:
  David Welch summarizes Volkswagen’s plight: stagnant revenue, stiff tariff headwinds in the US, and brutal competition and political resistance in China.

  “They're really ... seeing their business challenged in every major market...they have to really kind of get the company leaner ... but it’s going to be difficult ... it’s hard in Europe to cut a lot of jobs.” (09:38)

• Implementation Hurdles:
  Cutting 100,000 jobs is “politically thorny ... unions are very tough ... and politicians too.” (11:33)
• Market Reaction:
  Investors didn’t reward the cuts (stock up just 1.2%), suggesting skepticism about execution speed compared to prior industry examples (e.g., Stellantis).
• Structural European Challenges:
  Decades of complex labor agreements and government involvement cloud the path to needed efficiencies.

---

4. Boeing’s China Breakthrough—A Cautious Opening

Timestamps: 16:10 – 20:53

• Significance of New Deal:
  Boeing inks a $3.6B deal with China Southern Airlines—mostly for 777 freighters.
  George Ferguson, Senior Analyst, notes:

  “Every order is a good order...I'd like to see 737 orders going into China...that would get me more excited. That's a bigger portion of the marketplace.” (16:43)

• China Market Context:
  The market used to absorb 300+ narrow-body jets annually, but orders slowed amid trade tensions and the MAX crisis.

  “So, it’s been closed largely to Boeing since the first Trump administration...They used the grounding of the max ... as reason not to take it.” (18:24)

• Domestic Chinese Competition:
  China is ramping up its own Comac C919 jet, but it's lagging significantly in volume and scope.
• Boeing’s Operational Progress:
  Boeing is delivering 47 737s/month, improving its supply chain, though Airbus still leads overall (20:28).

---

5. JPMorgan Succession Drama Heats Up

Timestamps: 23:55 – 28:51

• The Big Question:
  Who will succeed the legendary Jamie Dimon? Sri Nacharan outlines the contenders:
  • Troy Rohrbaugh: Market risk expert, now running the retail/consumer bank; “more about market risk than splashy leadership displays.” (27:37)
  • Doug Petno: Charismatic investment banker; “exudes the charm of a natural leader...But he's 61...” (27:37)
• Changing of the Guard:
  Marianne Lake steps aside, narrowing the field.

  “It does feel like a Jamie and the board’s decision that maybe she wasn’t...going to get the top job. And that seems to have precipitated this change.” (24:52)

• Importance of the Retail Bank:

  "When you mess up on your trading desk, you might get an angry call... But if you mess up on the retail bank, the aggrieved party ... could very well be the President of the United States..." (26:09)

• Timeline Uncertainty:
  With Jamie Dimon signaling a wish to stick around for several more years, the ultimate outcome remains unclear.

---

Notable Quotes and Memorable Moments

• Memory Market Circularity:
  Market Analyst:

  “The market's having a circular debate with itself ... what is good news and what is bad news here.” (02:23)

• Egg Prices Analogy:
  Ed Ludlow:

  “My genius solution was to just make more chickens ... That logic I don't think is going to apply to memory chips, will it?” (04:47)

• On Job Cuts and Europe’s Constraints:
  David Welch:

  "They've always kind of pushed that reckoning off as much as possible because it's politically thorny to go and lay off a bunch of factory workers." (09:38)

• Boeing’s Narrowbody Setback:
  George Ferguson:

  “I'd like to see 737 orders going into China...that would get me more excited.” (16:53)

• On JPMorgan’s Next CEO:
  Sri Nacharan:

  “It’s definitely an audition...With the Wall Street business, your skills as a risk manager are extremely important.” (26:09)

---

Timestamps for Major Segments

• Memory Chip Shortage & Apple: 01:51–05:55
• OpenAI IPO Delay: 05:55–06:54
• Volkswagen Labor Cuts: 09:19–13:09
• Boeing’s China Order: 16:10–20:53
• JPMorgan Succession: 23:55–28:51

---

Tone & Language

The conversation is brisk and analytical, leavened with industry-insider humor (e.g., chicken/egg analogy) and candor about uncertainty. The experts maintain a balance between market-level analysis and plain English, ensuring accessibility for both finance professionals and general business listeners.

---

Summary Takeaway:
This episode paints a vivid picture of the complexities facing both the tech and traditional industries: surging AI costs are reverberating through supply chains, forcing prices up and altering investment narratives; global corporate giants face existential labor and market realignments under the pressure of geopolitics and evolving technology. Meanwhile, leadership succession in the financial world remains both a power struggle and a high-stakes game shaped by experience, circumstance, and, ultimately, the inscrutable hand of time.

Transcript

[Brookfield Representative]

At Brookfield, you can own wealth that's measured in generations for 125 years. We've built long term wealth through expertise, discipline and a clear vision for the future, providing investors access to alternative strategies built for what's Next Brookfield Own what's Next learn [e-mail] this is not an offer to sell or investment advice. Investing involves risks, including loss of capital.

[IBM Representative]

The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced costs by millions, slash repetitive tasks, and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business.

[Tech Advertiser/Promoter]

IBM okay, before we get into it, little side note for the IT leaders listening in. I was reading up on a Microsoft Commission survey the other day and learned that teams using Windows 11 Pro PCs report 62% fewer security incidents compared to Windows 10 PCs, including three times fewer firmware attacks. Pretty significant. With security built in, you'll have AI ready it that sets you up for operational efficiency as well as long term resilience. Upgrade to Windows 11 Pro at Windows means business.com

[Podcast Host/Announcer]

Bloomberg Audio Studios podcasts Radio news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Ed Ludlow]

This memory chip shortage, it's becoming a thing. I mean, for people like me and you and our listeners and our viewers here. Apple's raising prices for a lot of stuff now. It's starting to hit home for a lot of people. Ed Ludlow BTECH host He covers all this stuff. He's out there in our San Francisco offers. And I think, you know, people who weren't really paying too much attention to this chip shortage thing. I guess they're going to start thinking about it when they go to their Apple store and they're going to they have to pay more for some of those products. What's going on?

[Market Analyst]

Yeah, you kind of nailed what's been a very recent change in psychology of the market. We've gone from a place in the middle of the week where Micron is absolutely surging and the market is cheering. A situation where memory chip supply is so tight and the memory names have pricing power to now looking at it from completely the other perspective, from the Seller of memory to now the buyer. And that Apple case study, you know, the way that Bloomberg put it, is Apple raising prices because one single component cost is so high is an extreme measure. And so now extrapolating out and looking at what happened in Asia trading overnight, a little bit, the trading of this morning's market, the concern is the next step is we come full circle and demand for consumer electronics is dampened because of high prices. And by extension memory ironically sees demand dampen a bit. So it's a really sort of circular debate the market's having with itself here.

[Co-host/Interviewer]

Well, you know, when it comes to the memory chip shortage, is this something that is acute at the moment or is this going to be the new normal? Especially with all the demand for chips

[Market Analyst]

from everywhere, Essentially it's incredibly severe. So like in very simple terms, all these data centers that are getting built specifically with Nvidia GPUs or require lots of what's called high bandwidth memory. High bandwidth memory is just dram. Everyday DRAM goes into your own consumer electronics layered upon one on top of the other. For every Nvidia GPU you have, there are eight corresponding high bandwidth memory chips. So lots of layers of dram. And because A Micron and other memory names have pricing power and B, that those building the data centers have lots of money, that's where the supply is being prioritized. The net result is that the consumer electronics industry, not just Apple Xbox, raised prices on its consoles too. They have no choice but to pay that higher pricing in order to secure supply. It is a very severe situation. And you know, the weirdness was that in the moment again there was euphoria in the markets Wednesday into Thursday. Good for you. Micron stock surges. It's a really enviable position to be in. And what Micron said is that this situation is going to last for at least 18 months before it improves. So it's a lot for the market to decide, like what is good news and what is bad news here.

[Ed Ludlow]

Ed, when we had those higher egg prices coming out of the pandemic, my genius solution was to just make more chickens. But. And that basically is what happened and egg prices came down. That logic I don't think is going to apply to memory chips, will it?

[Market Analyst]

So historically, before this whole, I think memory was highly cyclical, highly commoditized. It was an industry that went through boom and bust when consumers got disinterested in pieces and smartphones. The memory market crashed both in terms of pricing. And so that is an industry that's so sensitive to getting supply right. The story under this administration in particular, but for a longer period of time has been let's get these companies to build more capacity. The problem is what if they build all these memory chip fabs and then demand evaporates and they're left with very large facilities that aren't doing anything? Well, that would be a really less than prudent financial move. That is still there. The difference is, is that the datacenter demand seems to be here forever. It has staying power. It's not as cyclical as the consumer electronics industry has been. It's really hard one for them to get right.

[Co-host/Interviewer]

All right, let's switch gears and talk about this open air IPO which may not be happening now until 2027. What can you tell us about that?

[Market Analyst]

I'm just looking at my bio to see if we've published yet. We haven't. What I can say is that it's consistent with what OpenAI said on June 8 when it disclosed its confidential filing that they would stay private for quite a long time because there are things that they want to do that are are more achievable as a private company than a public company. There is a lot going on in capital markets. As you know, we had the biggest IPO of all time in Space X. There is a lot of activity in the bond market, not just Space X. Tapping the bond market in video as well being the most recent. And there is a finite pool of capital. It's consistent that OpenAI would take its time. But I think what I can say safely on air is like I think OpenAI is also pretty calm about the idea the anthropic goes public before them. You know, if you, if you put it in the context of a race between two AI companies.

[Podcast Host/Announcer]

Stay with us.

[Ed Ludlow]

More from Bloomberg Intelligence coming up after this.

[Brookfield Representative]

At Brookfield, we invest in the thing behind the thing, behind the Next Big thing. Our focus across infrastructure, energy, real estate, private equity and credit is helping build the backbone of the global economy. We combine deep operational expertise with disciplined long term investing, uncovering value and partnering alongside clients to shape tomorrow's economy.

[Co-host/Interviewer]

Today.

[Brookfield Representative]

Brookfield Own what's Next? Learn [e-mail] this is not an offer to sell or investment advice. Investing involves risks, including loss of capital.

[IBM Representative]

So there's a lot of noise about AI, but time's too tight for more promises. So let's talk about results. At IBM, we work with our employees to integrate technology right into the systems they need. Now a Global workforce of 300,000 can use AI to fill their HR questions resolving 94% of common questions, not noise proof of how we can help companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business IBM Wise is

[Wise Representative]

the smart way to manage the currencies you need around the globe. If you've ever sent money internationally using a traditional bank, there's a good chance you've paid more than you realized. Hidden fees, exchange rate, markup, and extra charges can quietly add up before your money even arrives. There's a better way. Try Wise. Wise uses the exchange rate you'd usually find on Google, helping you avoid the unwelcome surprises that often come with international transfers. Whether you're sending money to family overseas, spending while on your holiday abroad, or paying bills across borders, Wise makes moving money simple, transparent, and straightforward. WISE offers 24. 7 customer service and runs over 7 million daily checks to spot and stop fraud. And most transfers happen in under 20 seconds, which means your money arrives in less time than you've been listening to me. Join millions saving billions. Be smart. Get Wise. Visit wise.com or download the Wise app today Ts and see Supply.

[Podcast Host/Announcer]

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Ed Ludlow]

Let's switch it over to the Auto business. Boy, I saw this headline. Some big numbers. Volkswagen is cutting 100,000 jobs, closing plants. That's big news. David Welch, Bloomberg Detroit Bureau of Chief, joins us here. David, what's going on with our friends at Volkswagen?

[David Welch]

Yeah, look, the company's been struggling for a while now with revenue flatlining profits, you know, stagnant at best. And they're facing costs from tariffs in the United States. They're facing competition in Europe from China and their Chinese business, you know, like General Motors. Volkswagen was one of the first pioneers there, and the Chinese have been first off. Their companies have waged price wars and taken up a lot of market share. Chinese government doesn't love foreign companies in the market so much anymore, and it's just been tougher for them to compete. So they're really, they're seeing their business challenged in every major market where they play. And they've always had a massive industrial complex in Europe with their parts units, engine units, different brands, and with the way things are run in Europe, it's always tough to cut jobs. And so they've always kind of Pushed that reckoning off as much as possible because it's politically thorny to go and lay off a bunch of factory workers. And, you know, they've got union people on their boards. The unions are very tough over there as well. And I think they're finally at a point where they have to really kind of get the company leaner in order to compete with everything that's going on around the world and keep their profits up. They're in a tough spot and they've got a lot of work to do. They've started some of it, but it's going to be difficult for them going forward because it's just, it's hard in Europe to cut a lot of jobs and they really have earmarks on massive numbers here.

[Co-host/Interviewer]

Yeah, I mean, definitely. Part of the challenge, of course, is implementing those plans to cut labor. And as you mentioned, David, a lot of labour leaders probably going to be pushing back on this latest round, but how difficult would it be to implement the plans at this stage? Or is the direness of the situation kind of going to overtake any of that issue?

[David Welch]

That's going to be really hard. You know, Ige Matteo is the big German union and they're going to be pushing back. Volkswagen has operations in other countries with different unions. They will push back, and politicians too. The German government doesn't love people laying workers off either. And, you know, Volkswagen's got some government ownership with Lower Saxony, the province that owns some of the company. So, you know, when you've got government kind of playing around in the business as well with people on the board, it all becomes politically very difficult to do. And I think they'll make some cuts and it's clear that they probably have to. But how much can they do and how fast can they do it? Those are the big questions. You notice the stock didn't roar on this thing. Usually when companies say they're going to cut a bunch of people, investors love it. And the stock goes up a lot. I think the last time I looked it was up like 1.2%, which is not a big bump. And I think investors, particularly European investors, know that these things are time consuming and difficult to do. And, you know, look at Stellantis. You know, they've acquired a bunch of different European brands over the years. You know, starting with Fiat and Peugeot, they bought Opel from General Motors and put all that together and they've made honestly pretty decent sense out of it, but still not a super profitable unit for them. And they have leaned it up, They've made it more efficient, they've cut workers, they've merged up engines and vehicle platforms and all kinds of hardware. But still tough to work through those stuff over the years and undo many decades of how these companies work in terms of their factories and all this sort of thing.

[Podcast Host/Announcer]

Stay with us.

[Wise Representative]

More from Bloomberg Intelligence coming up after

[Tech Advertiser/Promoter]

this

[Wise Representative]

Wise is the smart way to manage the currencies you need around the globe if you've ever sent money internationally using a traditional bank, there's a good chance you've paid more than you realized. Hidden fees, exchange rate markups, and extra charges can quietly add up before your money even arrives. There's a better way. Try Wise. Wise uses the exchange rate you'd usually find on Google, helping you avoid the unwelcome surprises that often come with international transfers. Whether you're sending money to family overseas, spending while on your holiday abroad, or paying bills across borders, Wise makes moving money simple, transparent and straightforward. WISE offers 24. 7 customer service and runs over 7 million daily checks to spot and stop fraud. And most transfers happen in under 20 seconds, which means your money arrives in less time than you've been listening to me. Join millions saving billions Be Smart, get wise visit wise.com or download the WISE app today Ts and C supply.

[Venture Global Representative]

Never bet against American Grit or American Energy through innovation, Venture Global is not only building some of the largest energy facilities in the world world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's Unstoppable Energy.

[Ed Ludlow]

Support for the show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on Public. You can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English like if the Vix hits 25, buy a put option on the S&P 500 or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public

[Bloomberg Correspondent]

Investing Brokerage Services by Open to the Public Investing Inc.

[Ed Ludlow]

Member FINRA and SIPC Advisory services by Public Advisors LLC, SEC registered advisor.

[Bloomberg Correspondent]

Complete disclosures available at public.com/disclosures.

[Podcast Host/Announcer]

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app. Listen on demand wherever you get your podcasts or watch us live on YouTube.

[Ed Ludlow]

I want to get real quickly to Boeing. Boeing inked a deal with China Southern Airlines to sell some jets. It's not a huge deal, $3.6 billion by aerospace standards, but it's might signal at least to me, I'm wondering if it signals maybe an opening up of this China market which has been kind of close to Boeing for maybe 10 years now and that would be a significant positive. George Ferguson joins us. He's been covering Boeing for decades. He's a senior aerospace, defense and airlines analyst. George, what should we take away from this China Southern Airlines deal with Boeing?

[George Ferguson]

I think first of all, first of all, good afternoon. Every order is a good order, right? There used to be a song out there, I guess Every love is good.

[Ed Ludlow]

Love, right.

[George Ferguson]

Every order is good. So good to see it. When I took a look at it. I haven't seen an official announcement on Boeing site, but I've seen it reported in some News outlets. It's Triple 7s, Triple 7 freighters. You know, Boeing's got a pretty strong product lineup that, that 777 freighter world. That's triple seven is going to be the biggest airplane in the sky with the new version of it. Freighter's quite large, pack it out pretty well, you know. So again it's a good order but I would have liked to have seen things like narrow body orders, right? I'd like to see 737 orders going into, into China that would get me more excited. That's a bigger portion of the marketplace. So again, good, good to see China on the book here. But this is an airplane that Boeing has a really strong, you know, airplane to to offer. Airbus doesn't have as good good of an offering and so I could have seen them potentially order this even away from the Trump visit and the, you know, and hopefully the reproach malt.

[Co-host/Interviewer]

Well, George, as Paul mentioned, you know, it seems like for years China, the China Airlines market just in general seems to have been closed off to a lot of the outsiders. But you know, with this deal, do you foresee some of that starting to thaw? And could this be the beginning of even more deals between the US And China Companies.

[George Ferguson]

Well, so we've put actually a China calculator on the Bloomberg terminal because we really look at that market prior to the pandemic, it was the most important market in the world, I think for Boeing and Airbus. You know, they were selling, there was over 300 narrow bodies going in there a year. It was a significant portion of narrow body production. It's really slowed down, but I would say it's still open for Airbus. Airbus has made, you know, a lot of deliveries into the market and orders in the market. And so it's been closed largely to Boeing since the first Trump administration. I think they kind of used the grounding of the max. The MAX crash grounding. The max's reason not to take it. Now China's slowed since then considerably. And so China just doesn't need the airplanes. We think right there the GDP growth is from 8% down into the fours. Now China's been a little bit inward looking and you know, they're building their own competitor to the Airbus and Boeing. Airbus A320, Boeing 737, the Comac C919 that has ramped much slower than we expected. I want to say There were some 20 some deliveries of that last year. In time, I would expect them to replace Boeing and Airbus orders and deliveries with that airplane. But again, like, you know, right now the way it looks to us is they're absolutely still buying from Airbus, taking the majority of their deliveries from Airbus. And Boeing has just been blocked out since the first Trump administration where we sort of entered into the trade war. And so that's kind of what we're looking for to lift because it could be more opportunity for Boeing. But we see a lot of orders on the books for Airbus. It feels like they're pretty full with orders. So that's why we're kind of watching closely to see what they do here.

[Ed Ludlow]

Georgia, about 30 seconds left. Where is Boeing now on the monthly deliverables for 737? Because you've told us in the past that's really critical for their cash flow

[George Ferguson]

story moving to 47, which is what we expected mid year. So I think they'll do 47amonth and the 737 through the end of the year, which is quite strong. They're actually getting better performance out of their supply chain and production build than Airbus is now, albeit Airbus is at higher, higher absolute levels. But Boeing's doing a decent job of catching up right now, so it's looking nice.

[Tech Advertiser/Promoter]

Stay with us.

[Ed Ludlow]

More from Bloomberg Intelligence coming up after

[Tech Advertiser/Promoter]

this

[Wise Representative]

Wise is the smart way to manage the currencies you need around the globe. If you've ever sent money internationally using a traditional bank, there's a good chance you've paid more than you realized. Hidden fees, exchange rate markups, and extra charges can quietly add up before your money even arrives. There's a better way. Try Wise. Wise uses the exchange rate you'd usually find on Google, helping you avoid the unwelcome surprises that often come with international transfers. Whether you're sending money to family overseas, spending while on your holiday abroad, or paying bills across borders, Wise makes moving money simple, transparent and straightforward. WISE offers 24. 7 customer service and runs over 7 million daily checks to spot and stop fraud. And most transfers happen in under 20 seconds, which means your money arrives in less time than you've been listening to me. Join millions saving Billions Be Smart. Get wise visit wise.com or download the WISE app today Ts and C supply.

[Venture Global Representative]

At Venture Global, we think about what can be done, not what's usually done through innovation. Venture Global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost in a fraction of the time. So while others are busy talking, we're busy building. That's Venture Global. That's Unstoppable Energy.

[Ed Ludlow]

Support for the show comes from public.com if you're actively involved in your portfolio, you probably catch yourself repeating the same actions. Buying the dip, manually sweeping idle cash, putting on a hedge on Public you can now create AI agents that handle all these tasks on your behalf. Just describe what you want to do in plain English like if the Vix hits 25, buy a put option on the S&P 500 or if my cash balance goes above $20,000, move the excess into my direct index. You approve the workflow and your agent handles the risk, monitoring the market, watching for your conditions and executing your strategies exactly as defined. An investing platform driven by your intent, not just your clicks. You can also get full read and write access to your account via the public API. Go to public.com market and fund your account in five minutes or less. That's public.com market paid for by Public

[Bloomberg Correspondent]

Investing Brokerage Services by Open to the Public Investing Inc. Member FINRA and SIPC Advisory Services by Public Advisors LLC. SEC registered advisor complete disclosures available at public.com/disclosures.

[Podcast Host/Announcer]

You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10am Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app Listen on Demand. Wherever you get your podcasts or watch us live on YouTube.

[Ed Ludlow]

Sri Nacharan joins us here. He's the chief Wall street correspondent for Bloomberg News. Talk to us about what's going on at J.P. morgan and who are the potential heirs to Mr. Jamie Dimon.

[Bloomberg Correspondent]

It's the latest iteration of Wall Street's favorite parlor game. Right. Who will be in position to take on the most consequential job in American finance? Jamie Dimon has been in that role for 20 years. He does not, does he doesn't look like he wants to step away anytime soon. He wants to be there for a few more years. But the news yesterday helped narrow the feed a little bit from potentially three candidates to two. One long time, arguably the front runner, Marianne Lake, over the last year or so has been forced to step aside or at least has stepped aside. And now the two new names in the mix are forced. I guess if we think about it,

[Ed Ludlow]

one, I read it as a voluntary, hey, I got my plenty of dough, I'm gone.

[Bloomberg Correspondent]

I think there's certainly a difference between the news early last year and this time around because early last year, if you remember, J.P. morgan came out and said Jen Peepsack, who's now the CEO of the bank, bank, but was widely considered as one of the frontrunners to replace diamond, put her hand up and said, I'm not interested in being CEO. I love my job. I'm comfortable in my skin. I want to continue doing what I'm doing. She's still at the bank, but she very clearly voluntarily put up her hand and said, I do not want to be CEO. In the case of Marianne Lake, we haven't seen any announcement to that effect. It does feel like a Jamie and the boards decision that maybe she wasn't in, you were necessarily going to get the top job. And that seems to have precipitated this change. Where now you have Doug Pettner, who will have sole charge of all of JP Morgan's vast Wall street operations and Troy Rohrbaugh, the 56 year old who's now going to be moved to the other side, the other big pillar of the bank, which is its sprawling consumer business after having run the Wall street business. So he's certainly getting that cross training that Jamie definitely loves to see in his lieutenants.

[Co-host/Interviewer]

Yeah, well, so very different portfolios now for these two men. This is effectively an audition for both of them for the top job, I would presume 100%.

[Bloomberg Correspondent]

It's definitely an audition. Both of them have very strong Experience in the Wall street side of the business. And you could say that is in some ways the tougher part because that's all about managing risk. The retail bank, if you, if you get it into decent shape, it is very predictable and it ebbs and flows with the broader macro economy. With the Wall street business, your, your skills as a risk manager are extremely important. Even today, Jamie Dimon is regarded as one of the top CEOs out there. Largely in part, and thanks to the way the bank navigated the 2008 financial crisis, it came out stronger than everyone else. And today it is fortress. Jamie Dimon, right, the fortress balance sheet that they talk about. It is the most powerful banking institution in the United States. So the Wall street side of the business is important. But when you, if you want to be CEO, you can't forget the retail business. That is about as important as anything else out there. When you mess up on your trading desk, you might get an angry call from, I don't know, Easy Englander, Millennium or Steve Cohen at point 72. But if you mess up on the retail bank, the aggrieved party on the other side could very well be the President of the United States, something that the bank is currently facing. So it's a very important job, even if it's not as profitable as the banking and trading side.

[Ed Ludlow]

All right, then there were two. Troy Rohrbaugh and Doug Petno. I know nothing about either of them. What should I know?

[Bloomberg Correspondent]

Well, the thing you should know about Troy is he grew up in the Baltimore area. Big fan of Baltimore area sports. He got a start in the 1990s growling pit of the Philadelphia Stock Exchange. So just the transformation from that point to now being a heartbeat away from one of the most important jobs in finance is sort of an incredible journey. Complete trading veteran, came up through the ranks, has spent most of his time there. Is known as a little bit of a non showy character. More risk fuss is more about market risk than splashy leadership displays. Whereas Doug Petno, smooth investment banker, was a top energy banker, then ran the commercial bank, now will have sole charge over the commercial and investment bank. Easy with clients, exudes the charm of a natural leader. But he's 61. And if Jamie Dimon wants to stick around for three odd years and then perhaps another couple of years after that as chairman, where if you have Jamie Dimon as your chairman, are you necessarily the final say? At any place the clock starts ticking and you do wonder at 65, does JP Morgan look at a Doug Petno and say you're our man for the possibly the next 10, 15, 20 years. Or do they go with a safer Troy Robo bet?

[Podcast Host/Announcer]

This is the Bloomberg Intelligence Podcast, available on Apple, Spotify and anywhere else you get. Your podcasts listen live each weekday 10am to noon Eastern on Bloomberg.com, the iHeartRadio app, TuneIn, and the Bloomberg Business App. You can also watch us live Every weekday on YouTube and always on the Bloomberg Terminal.

[Tech Advertiser/Promoter]

Okay, tech leaders, word on the street is security incidents are dropping way down with Windows 11 PCs built in. Security for the win upgrade to Windows 11 Pro@Windows means business.com when you're running

[Ed Ludlow]

a business, the best days are the ones where priorities stay on track. For midsize and large companies, risk can affect multiple parts of the organization at once, from property and liability to cyber and regulatory challenges. At that level, managing risk becomes an ongoing discipline. At the Hartford, the focus is on helping businesses manage risk before it turns into something more disruptive. And when losses do happen, that work is paired with insurance coverage and shaped by years of underwriting, risk engineering and claims experience. Learn [e-mail] riskmitigation policies provided by Hartford Fire Insurance Company and its property and casualty affiliates.

[Podcast Host/Announcer]

Hartford, Connecticut as a restaurant genius, I know the experience starts long before the food hits the table. Genius by Global Payments makes it easy. Digital menu news and price updates in real time. No reprints, no surprises. The kitchen and floor stay perfectly in sync, so every dish arrives exactly as it should, from game day crowds to memorable meals. Big league reliability for any business, that's genius.