Bloomberg Intelligence Podcast Summary

Episode: Trump Moves to Have Tech Giants Pay for Surging Power Costs
Date: January 16, 2026
Hosts: Scarlet Fu, Paul Sweeney
Featured Analysts & Guests: Mandeep Singh, Lee Klaskow, Rania Sedholm, Michael Halen

Overview

This episode of the Bloomberg Intelligence Podcast explores several pressing issues across technology, retail, transportation, and the restaurant sectors. The main focus is on recent proposals—highlighted during Trump's presidency—to make major technology companies directly accountable for their surging energy and electricity costs, particularly as AI and data center demands skyrocket. The episode also spotlights trends and challenges in the semiconductor industry, analyzes J.B. Hunt's performance as a bellwether for the broader economy, discusses the fallout from Saks' bankruptcy, and considers the near-term outlook for U.S. restaurant chains amid changing consumer dynamics and technological advancements.

Key Discussion Points and Insights

1. Big Tech, Data Centers, and Surging Power Costs

With Mandeep Singh, Global Tech Research Head

• Trump's Push for Tech to Shoulder Energy Costs

  • Non-binding statements promoted to have technology giants pay more for their amplified grid demands.
  • Data centers for AI are enormously energy-intensive, pushing electricity consumption tenfold.
  • U.S. power grids, many decades old, are ill-equipped to handle this demand spike.
  • “How will a 70 to 80 year old grid supply electricity which is 10 times more than what these data centers already consume? …That's the realization that's coming in now.” — Mandeep Singh [01:37]
  • Rising energy bills are already trickling down to consumers.
  • As AI computing grows, further power and cost increases seem inevitable.

• AI Data Centers’ Impact on Profit Margins

  • Cloud giants like Amazon, Microsoft, and Google historically earned high margins on cloud (65-70%).
  • AI data center operations have much lower margins due to massive energy and infrastructure costs—now below 50% regardless of scale.
  • “Even if you're Microsoft, you don't have a choice, but your margins will have to come down.” — Mandeep Singh [02:49]
  • On-premise software: 80-90% margin → Public cloud: 65-70% → AI era: below 50%.

• Semiconductor Sector Trends

  • Semiconductor stocks, especially TSMC (Taiwan Semiconductor Manufacturing Company), leading S&P 500 performance.
  • Supply chain bottlenecks: As attention shifts to AI, shortages in related components like storage and CPUs are emerging.
  • “CPUs... suddenly CPUs are in short supply. So that's where the IT infrastructure needs to be upgraded every four or five years.” — Mandeep Singh [04:45]

2. Trucking & Macroeconomics: J.B. Hunt's Market Signal

With Lee Klaskow, Senior Transport, Logistics & Shipping Analyst

• Earnings Performance & Market Expectations

  • J.B. Hunt missed revenue expectations but posted above-consensus earnings, buoyed by its intermodal, truckload, and final mile businesses.
  • Freight brokerage and dedicated lines lagged behind, partly due to ramp-up costs and slower margin realization.
  • Management adopted a "cautiously optimistic" tone, wary of false recovery signals in the spot freight market.

• Broader Economic Implications

  • J.B. Hunt regarded as a macroeconomic bellwether; its fortunes mirror shifts in consumer demand and freight movement.
  • Signs of a K-shaped recovery: “It does seem like this economy is a K-shaped economy. There's pockets of strength and pockets of weakness.” — Nathan Hager [11:59]
  • Seasonal upticks noted (Q4 peak demand), with resilience in domestic repositioning of freight.

• Cost Cutting and Future Prospects

  • J.B. Hunt implemented significant cost cuts—$25M in Q4, running over $100M annualized—focusing on productivity, not just trimming expenses.
  • Improved operational efficiency (e.g., better trailer utilization, faster drayage fleet turns) could help margins rebound if spot rates firm up.
  • “They're not just resting on their laurels…all these things will lower the overall cost...could drive margins significantly higher and closer to those long-term targets.” — Nathan Hager [12:14]

3. Saks Bankruptcy: Fallout for Luxury Retail

With Rania Sedholm, Managing Partner, Sedholm Law Group

• Collapse Driver & Vendor Impact

  • Many brands cut ties with Saks after unpaid consignment invoices, worsening its merchandise assortment and accelerating the decline.
  • “If you've tried to go shopping recently in Saks Fifth Avenue, you will notice a shift in the products that are available...this was the start of the end, really.” — Rania Sedholm [15:44]
  • Bankruptcy means credit/rewards programs may be at risk (though, in this case, are reportedly honored), but product range and trust have eroded.
  • Key advice to brands: Ensure consignment contracts specify merchandise ownership until sold, and file UCC liens for bankruptcy protection.

• Repairing Brand and Vendor Relationships

  • Communication failure exacerbated trust issues; Saks only notified customers about bankruptcy after the fact.
  • “The first thing that Saks needs to do…is tell everyone why this happened and what steps they’re taking to remedy it.” — Rania Sedholm [18:03]
  • Importance of explaining business decisions to recover stakeholder confidence.

• Investor Position and Path Forward

  • In bankruptcy, secured creditors (e.g., landlords, banks) are paid before unsecured.
  • Skepticism about the Saks-Neiman Marcus merger; “Not sure that that marriage was off to a good start...it was a hefty price that was paid.” — Rania Sedholm [19:35]
  • Optimism about Saks' survival: “I think Saks does make it out of this, but...they’re going to have to contract in order to grow...It’s not a good idea to just have a huge footprint that’s lackluster.” — Rania Sedholm [20:37]

4. Restaurant Outlook: Fast Food, Technology, and Consumer Trends

With Michael Halen, Senior Restaurant & Food Services Analyst

• 2026 Sales Forecast

  • Lower gasoline prices (down ~13%), tax relief, and easier YoY sales comparisons set up a strong first half for restaurants.
  • Fast food chains, specifically McDonald's and Taco Bell, stand to benefit as low-income consumer spending rebounds.
  • “They're the segment of the consumer that have kind of pulled back...so giving them a boost with tax reform...cheaper gas is going to help them the most.” — Michael Halen [24:28]

• Winners Beyond McDonald's & Taco Bell

  • Kava and Wingstop positioned for sales acceleration after tough 2025 comps.
  • Wingstop's smart kitchen technology expected to vastly improve speed and throughput.

• The Rise of Kitchen Automation

  • Technology adoption finally ramping up in a historically under-invested sector.
  • Smart kitchens are streamlining order timing, not just adding robots for show.
  • “Technology is being used...to let the cooks know when to fire each meal so that everything comes out at the exact same time.” — Michael Halen [26:40]

• Impact on Restaurant Jobs

  • More automation and self-service kiosks reduce labor intensity but won’t eliminate human workers altogether.
  • “I don’t think we’re going to go into restaurants that don’t have humans working...but you’ll continue to see kiosks...and more kitchen automation.” — Michael Halen [27:22]
  • Rising minimum wage and labor shortages pressure adoption of operational technology.

Memorable Quotes & Timestamps

• “We're talking about power requirements going 10x to 1 gigawatt. And so how will a 70 to 80 year old grid supply electricity which is 10 times more than what these data centers already consume?”
  — Mandeep Singh [01:34]

• “AI Data Centers...are sub 50% gross margin businesses. No matter what kind of scale you have, just because of the economics involved.”
  — Mandeep Singh [02:49]

• “So there will be...instances where one of the components gets neglected and suddenly everyone finds that to be in short supply when you need it.”
  — Mandeep Singh [04:05]

• “This economy is a K-shaped economy...we're seeing pockets of strength and pockets of weakness.”
  — Nathan Hager [11:59]

• “The first thing that Saks needs to do…is tell everyone why this happened and what steps they're taking to remedy it...”
  — Rania Sedholm [18:03]

• “Giving [low-income consumers] a boost with tax reform...cheaper gas is going to help them the most...[it] points to better results at fast food chains like McDonald's and Taco Bell.”
  — Michael Halen [24:28]

• “Technology is being used in the kitchen to let the cooks know when to fire each meal so that everything comes out at the exact same time.”
  — Michael Halen [26:40]

Key Segment Timestamps

• Big Tech & Energy: 01:11 – 05:07
• Trucking/Economy (J.B. Hunt): 08:31 – 13:23
• Saks Bankruptcy & Legal: 15:15 – 21:18
• Restaurant Sales Outlook: 22:40 – 28:24

Summary

This dynamic episode offers critical insights into how shifting regulatory, technological, and economic tides are impacting U.S. industry titans—from big tech’s AI-fueled energy crunch and margin pressure, to cyclical ripples in logistics, the hazards and recoveries of high-end retailers, and the evolving face of American fast food. Expert analysis ties company performance and industry narratives to broader macroeconomic and societal changes, making the episode invaluable for professionals tracking business trends and policy impacts in 2026.