Wall Street Week | Rattner on Manufacturing, US Public Buses, Milan’s Boom, AI & The Future of Work
Watch on YouTube ↗  |  February 14, 2026 at 00:00 UTC  |  56:36  |  Bloomberg Markets
Speakers
David Westin — Host, Wall Street Week
Steven Rattner — CEO, Willett Advisors (Former Auto Czar)
Ed Glaeser — Economics Professor, Harvard University
Luigi De Vecchi — Chairman of Continental Europe, Evercore
Rich Ross — Former Hollywood Executive / Milan Resident
David Autor — Professor of Economics, MIT
Erik Brynjolfsson — Professor, Stanford University

Summary

  • The "Manufacturing Renaissance" is largely a myth; output and employment are declining, with the only real capital investment boom occurring in data centers, not factories.
  • US Auto OEMs are in a "lose-lose" scenario: Tariffs on parts increase production costs (Ford lost $900M), while the anti-EV political shift is forcing costly write-downs on recent EV investments.
  • Milan is experiencing a structural boom driven by tax incentives (flat tax for wealthy foreigners) and the upcoming 2026 Winter Olympics, attracting high-net-worth individuals and financial firms.
  • AI is expected to drive significant productivity growth (3-3.5% GDP impact), but it will likely commodify "middle-skill" expertise, transferring value from labor to capital owners and platforms.
Trade Ideas
Ticker Direction Speaker Thesis Time
F /GM
SHORT Steve Rattner
Economic Analyst / CEO of Willett Advisors
Rattner notes that US manufacturing output is declining and automakers are taking "large charges" to modify/exit EV businesses due to the new administration's anti-EV stance. He explicitly mentions Ford losing $900 million due to tariffs on imported parts. The sector faces a double whammy: Tariffs on parts raise the Cost of Goods Sold (COGS) for US OEMs, while policy whiplash regarding EVs destroys the ROI on capital previously deployed to comply with mandates. SHORT US legacy automakers as they face margin compression from tariffs and strategic confusion. Sudden reversal of tariff policies or unexpected subsidies for legacy auto. 4:57
LONG Steve Rattner
Economic Analyst / CEO of Willett Advisors
While general manufacturing is struggling, Rattner states there is "obviously a huge boom in construction going on in data centers." He also cites the CHIPS Act as a success with factories building in Arizona. Capital expenditure is decisively shifting from traditional industrial plants to digital infrastructure. Companies providing the physical infrastructure (power/cooling like Vertiv) and the chips (Semiconductors) are the sole beneficiaries of this "manufacturing" spend. LONG the picks and shovels of the data center buildout. Overbuild/capacity glut or energy supply constraints. 2:27
LONG David Autor
Professor of Economics, MIT
Autor uses ride-hailing as the primary example of how technology commodifies expertise. He notes that GPS/Apps allowed anyone to drive, which "lowered wages of people in the taxi driving industry" but expanded the service. AI/Tech removes the "moat" of human expertise (knowing the streets), increasing the supply of labor. This suppresses labor costs (bullish for the platform's margins) while increasing service availability and volume (bullish for the platform's revenue). LONG the platform (UBER) that benefits from commoditized, cheaper labor inputs. Regulatory crackdowns on gig-worker classification. 40:31
RACE /LVMH /GS /C
LONG Luigi de Vecchi
Chairman, Capital Markets, Citigroup EMEA
Milan is attracting wealthy expats due to a flat tax regime and the 2026 Winter Olympics. Real estate is up 38%. Financial firms like Goldman Sachs and Citi (implied via "financial institutions have expanded") are moving personnel there. The influx of high-net-worth individuals drives consumption of luxury goods and high-end services. Ferrari (RACE) and LVMH benefit from the concentration of wealth in Europe. Global banks (GS/C) benefit from the M&A boom and wealth management needs in the region. LONG beneficiaries of the "Milan Boom" (Luxury and Global Banks). Reversal of the Italian flat tax regime in upcoming elections. 30:13
LONG Erik Brynjolfsson
Professor, Stanford University
Brynjolfsson is betting that productivity will be significantly higher than CBO predictions due to AI. He references the "Digitalist Papers" and the massive investment by tech giants to build out capabilities. The "San Francisco consensus" (mentioned by Eric Schmidt in the papers) suggests that the Hyperscalers are the gatekeepers of this productivity boom. They own the models and the infrastructure required to capture the economic value of the 3.5% GDP growth Rattner predicts. LONG the owners of the AI infrastructure. Regulatory breakup or failure to monetize AI capex.