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BOJ, Ukraine, Markets, and AI (Podcast) · Bloomberg Intelligence

• 0:00
  Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
• 0:04
  Speaker 1: my co host Matt Miller. Every business day, we bring
• 0:06
  Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
• 0:11
  Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
• 0:15
  Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
• 0:18
  Speaker 1: at Bloomberg dot com slash podcast. Abigail Doolittle, thank you
• 0:22
  Speaker 1: so much for joining us. Markets correspondent for Bloomberg televisis
• 0:25
  Speaker 1: joining us here and our Bloomberg Interactor Broker studio. All right,
• 0:28
  Speaker 1: let's stop currencies here. I'm looking at my Bloomberg Dollar Index.
• 0:32
  Speaker 1: It's up slightly today. Um, you know, the yen has
• 0:35
  Speaker 1: been the story. It's off a little bit today, but
• 0:37
  Speaker 1: the yen has been the story over the last couple
• 0:39
  Speaker 1: of days, with the Bank of Japan saying all right,
• 0:42
  Speaker 1: maybe we'll let interest rates go higher. We'll fight this
• 0:44
  Speaker 1: inflation thing. We'll be like everybody else around the world.
• 0:47
  Speaker 1: Audrey Child Freeman, she's a chief FX strategist. She focuses
• 0:51
  Speaker 1: on the G ten country. She does that with Bloomberg Intelligence.
• 0:54
  Speaker 1: She's based in London. She's actually in our London studios.
• 0:58
  Speaker 1: So you get a virtual gold star for me, Audrey
• 1:02
  Speaker 1: for being in the office. We appreciate that. UD give
• 1:05
  Speaker 1: us your sense of what you know. Your takeaway is
• 1:08
  Speaker 1: from what we saw from the Bank of Japan over
• 1:09
  Speaker 1: the past couple of days. Hi, good morning everyone. So
• 1:13
  Speaker 1: I think it is the game changer, even though we
• 1:17
  Speaker 1: kind of we all saw it coming, but there was
• 1:19
  Speaker 1: this element of surprising in terms of the timing, and
• 1:24
  Speaker 1: and that element of surprise probably exacerbated the price action.
• 1:28
  Speaker 1: But the b o J action is basically a first
• 1:33
  Speaker 1: step towards right normalization, and that means that we are
• 1:37
  Speaker 1: moving away from the you know, the era of negative
• 1:41
  Speaker 1: rates for for for Japan, and it is the game
• 1:46
  Speaker 1: changer for the currency. I mean, um, the YenS cubtainly
• 1:50
  Speaker 1: reacted uh with a massive move yesterday, and I think
• 1:56
  Speaker 1: it's just the beginning. I think we will see more
• 1:59
  Speaker 1: strength and of the end in the weeks to come,
• 2:02
  Speaker 1: and that will most likely be a theme that dominates
• 2:06
  Speaker 1: early early in twenty twenty three at least. Well, speaking
• 2:10
  Speaker 1: of some of the currency fluctuations, I'm curious about currency intervention.
• 2:15
  Speaker 1: One of the issues that the b J, it feels like,
• 2:18
  Speaker 1: has had as they've been exercising the reserves for far
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  Speaker 1: too long. And if they don't use this um kind
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  Speaker 1: of yield curve control and whide in the bands even
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  Speaker 1: further in the face of inflation, to what extent are
• 2:29
  Speaker 1: they going to be forced to entertain the idea of intervention. Well,
• 2:34
  Speaker 1: I think when it comes to intervention, the message on
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  Speaker 1: the currency front is very clear. Uh, and it's not
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  Speaker 1: just the b O G it's the G seven view
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  Speaker 1: that excessive moves in the front exchange market are not welcome.
• 2:48
  Speaker 1: So you could argue that, you know, yesterday's move where excessive,
• 2:51
  Speaker 1: but uh, let's let's see what happens, you know, in
• 2:55
  Speaker 1: the days and weeks to come. But certainly in the
• 2:58
  Speaker 1: current macro context, you know, we are now in a
• 3:01
  Speaker 1: position where a stronger year it's actually kind of welcome
• 3:05
  Speaker 1: for for the Japanese economy. We have moved away from
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  Speaker 1: the deflationary world that that we were, that would be
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  Speaker 1: used to for so many years, and we have now
• 3:17
  Speaker 1: a pick up in inflation. And and that's why the
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  Speaker 1: bo J had very little option but moving away from
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  Speaker 1: the monetary policy environment that had been in place for
• 3:27
  Speaker 1: so long, and that may have been justified, and that's
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  Speaker 1: debatable by the way over the past few years, but
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  Speaker 1: certainly not justified in twenty twenty two and going into
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  Speaker 1: twenty twenty three. UM So I think effects intervention unless
• 3:45
  Speaker 1: you know, the magnitude of the move continued in the
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  Speaker 1: kind of place that we've seen in the past few days,
• 3:51
  Speaker 1: and I don't think they will. I think it's not
• 3:55
  Speaker 1: likely for for now, it's not the subject for for
• 3:58
  Speaker 1: next year. We speaking about Audrey Child Freeman effect strategist
• 4:02
  Speaker 1: for Bloomberg Intelligence, and Bloomberg Intelligence, in my opinion, is
• 4:07
  Speaker 1: among the best and certainly most comprehensive investment research on
• 4:11
  Speaker 1: Wall Street bar none. And if you want to argue
• 4:13
  Speaker 1: with that, you know where to find me. Audrey. You've
• 4:16
  Speaker 1: got a research report out saying dollar agen may fall
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  Speaker 1: one five boy, and that's a that's a big move.
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  Speaker 1: We've got the the end here one thirty two spot one.
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  Speaker 1: What will drive it down? So, I mean you said
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  Speaker 1: it's it's a bit cool, but you know some people
• 4:32
  Speaker 1: may go even more aggressive. I'm saying one twenty five
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  Speaker 1: by the first half of next year. So just think
• 4:38
  Speaker 1: about the numbers. I think when you you know, when
• 4:41
  Speaker 1: you make some calls. It's always relevant to just look
• 4:43
  Speaker 1: back at what happens and where we are and how
• 4:46
  Speaker 1: much of the movie we've seen. So Dolligan is now
• 4:49
  Speaker 1: down about twelve percent from the high that we had
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  Speaker 1: by late October. Remember we're trading near one fifty, so
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  Speaker 1: twelve percent in just six or seven weeks. But Dolan
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  Speaker 1: is still about above the ten year moving average, which
• 5:08
  Speaker 1: is around one ten dollar. Yan is also about seventy
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  Speaker 1: above the pre abnomics level of eighty. And we have
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  Speaker 1: our own model an intelligence are be our model valuation model,
• 5:22
  Speaker 1: which you know I like to refer to on occasions.
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  Speaker 1: Uh And and that's that's telling us that fair value
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  Speaker 1: on Dolloyan is at around one eleven UM. So what
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  Speaker 1: I'm trying to say here is that yeah, miss miss
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  Speaker 1: and punchy, but it isn't in the wake of the
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  Speaker 1: move that we've seen on Dollyan this year, and where
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  Speaker 1: where we are on on on valuation and on historical levels,
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  Speaker 1: and and beyond the bo j story, there's also a
• 5:51
  Speaker 1: wide range of other reasons why you could argue for
• 5:55
  Speaker 1: a week a dollar yen. And actually, even before the
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  Speaker 1: bog action yesterday, that was my strongest conviction for for
• 6:02
  Speaker 1: the year for early next year. It's just coming early.
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  Speaker 1: So let's see what I can. All right, if it
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  Speaker 1: gets there, I'm giving you all the credit. Audrey Child, Freeman,
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  Speaker 1: Chief G ten strategist currencies for Bloomberg Intelligence and again,
• 6:16
  Speaker 1: Bloomberg Terminal users can find all of the world class
• 6:19
  Speaker 1: investment research of Bloomberg Intelligence at b I go on
• 6:23
  Speaker 1: the terminal. Historic day in Washington, DC today is Ukrainian
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  Speaker 1: President Vladimir Zelenski arrives in Washington, d C. To meet
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  Speaker 1: with President Biden UH Joint Session of Congress UH and
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  Speaker 1: you know, really making the case for the war in
• 6:43
  Speaker 1: Ukraine if a continued support. So our next guest is
• 6:45
  Speaker 1: absolutely critical to that discussion. Tamila to Shiva. She is
• 6:50
  Speaker 1: the permanent representative of the President of Ukraine for the
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  Speaker 1: Autonomous Republic of Crimea. Tamila, thank you so much for
• 6:57
  Speaker 1: joining us. We really appreciate you taking the time, which
• 6:59
  Speaker 1: I know which is just a critical period of time
• 7:02
  Speaker 1: in Kiev and in Ukraine. I'd love to get your
• 7:06
  Speaker 1: sense of kind of way you think the objectives the
• 7:08
  Speaker 1: aims are of your President Zelensky as it comes to Washington,
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  Speaker 1: d C. Hello, everyone many thanks for inviting me. Actually
• 7:19
  Speaker 1: it's not my mandate to committigate a visit of our president,
• 7:23
  Speaker 1: but it's really very important for Ukraine because it's a
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  Speaker 1: first visit of our president and of course the United States,
• 7:31
  Speaker 1: it's our strategic partner, and all our Ukrainian citizens really
• 7:38
  Speaker 1: UH enjoy and really happy for this UH visit of
• 7:45
  Speaker 1: our president, and of course we're waiting for all statements
• 7:50
  Speaker 1: of our president and this meeting with President Biden and
• 7:55
  Speaker 1: with State Congress. Of course, for Ukraine is really very
• 8:03
  Speaker 1: support to have more support on military sphere especially and
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  Speaker 1: financial support from US government. UH to me like, could
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  Speaker 1: you you're in Kiev, could you give us a sense
• 8:18
  Speaker 1: of how things are today on the ground, uh in
• 8:21
  Speaker 1: in Kieva. Uh. Today we have the two alarums in Kiev.
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  Speaker 1: But during the last a few months sexually Russian Federation
• 8:36
  Speaker 1: unfortunately destroyed our energetic infrastructure, electricity and to we have
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  Speaker 1: huge problems with water supply CELSO in Kiev and it's
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  Speaker 1: our daily based unfortunately problems in all cities, not only
• 8:55
  Speaker 1: in the Kiev, but in Reef also region internalbly Jian
• 9:00
  Speaker 1: in her In Harkief and Herson Region which is elaborated.
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  Speaker 1: Now you're the representative. In further, President of Ukraine in
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  Speaker 1: the Autonomous Republic of Crimea talked U a little bit
• 9:12
  Speaker 1: about the conditions there. Yes, unfortunately, we always say that
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  Speaker 1: war is not starting this Fabruary, yes, two, but eight
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  Speaker 1: years ago and in half years ago and now situation
• 9:32
  Speaker 1: in Crimea also dramatically change. But because Russia used Crimia
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  Speaker 1: as a military base, huge military base, they used this UH,
• 9:44
  Speaker 1: this territory Crimea to launch sale attacks. During this ten
• 9:51
  Speaker 1: months of a huge war, big war, Russia attacked from
• 9:58
  Speaker 1: Black Sea region and from Crimea territory and NIA eight
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  Speaker 1: hundred missiles against Ukraine on the territory of Ukraine. UH.
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  Speaker 1: They stole our grain from territory of mainland of Ukraine
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  Speaker 1: in Herson region and the Parisia, and they used Crimea
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  Speaker 1: for stalling this grain. They use our people in a
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  Speaker 1: temporary occupied Crimea for UH for this battlefield. Because they
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  Speaker 1: mobilized our Ukrainian citizens to this war against their own
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  Speaker 1: country and their own people, and of course we understand
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  Speaker 1: it's a war. Crimes. They prosecute our people. According to
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  Speaker 1: testimonies of Crimeans Nia UH two hundred and fifty cases
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  Speaker 1: of criminal or administ rates of persecutions of Cramians and
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  Speaker 1: to our activists, it's a lot of cases. We have
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  Speaker 1: one hundred and fifty five criminal persecutions, it's a political
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  Speaker 1: prisoners and one hundred and nine from them. UH, it's
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  Speaker 1: a crimean data. They persecute crimean dators. It's a huge
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  Speaker 1: and massive persecutions and human rights abuses in Cramia Tamila.
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  Speaker 1: From the US perspective, we are reading headlines and news
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  Speaker 1: stories about the amount of assistance that is going to
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  Speaker 1: Ukraine right now as President Joe Biden due to unveil
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  Speaker 1: nearly two billion dollars in assistance and UH further moves
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  Speaker 1: to deliver things like missiles and weapons in addition to
• 11:43
  Speaker 1: more funding. But at the same time, we do have
• 11:45
  Speaker 1: sanctions that are underway globally against Russia. Do you feel
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  Speaker 1: like on the ground those things are making an impact. Yes,
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  Speaker 1: of course, even for human rights defenders. UH, these sunctions
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  Speaker 1: is really work on the level of economical and economic
• 12:04
  Speaker 1: but also for ordinary people. For example, when we proposed
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  Speaker 1: the sanctions for our partners from US government or for
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  Speaker 1: European our partners, and they do these sanctions against for example,
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  Speaker 1: those persecutors of Crimeans. They stopped some persecutions in prison
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  Speaker 1: in Cramian prisons against Crimans who now in prison or
• 12:38
  Speaker 1: in predicential centers, and they really understand it. And for Cremia,
• 12:44
  Speaker 1: of course itself so very important because according to sanction
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  Speaker 1: regime UH, Crimea lens UH now easilated. And for Russia
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  Speaker 1: it's very hard to get some investments, for example to Crabia.
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  Speaker 1: And they really understand that Crania it's not really part
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  Speaker 1: of Russia according to yes, no, it's just and and
• 13:16
  Speaker 1: t mel I just want to before we have to
• 13:18
  Speaker 1: let you go, which want to get a sense of
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  Speaker 1: how is the morale of the Ukrainian people, the people
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  Speaker 1: in Crimea that have been dealing with us for so long. Um,
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  Speaker 1: the fighting has been so brave by the Ukrainians against
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  Speaker 1: seemingly insurmountable odds. What's the morale on the ground of
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  Speaker 1: the average Ukrainian, all Ukrainians. We really understand that now
• 13:39
  Speaker 1: we fight in UH for our values, for our freedom,
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  Speaker 1: and we fighting not only for territories but for people.
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  Speaker 1: Elsa and our people in Crania is really understand it,
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  Speaker 1: and they say that we waiting. Our Ukrainians are forces
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  Speaker 1: also in Crimia. And according to Russian view, they say
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  Speaker 1: that Cremia is always Russia, but it's not true. And
• 14:12
  Speaker 1: yes it's a Ukrainian lens, it's a Crimean lands. And
• 14:16
  Speaker 1: now our president also always say ye, all right, Tamila,
• 14:21
  Speaker 1: thank you so much for joining us to really appreciated
• 14:22
  Speaker 1: Tamila to Shave a permanent representative of the President of
• 14:25
  Speaker 1: Ukraine for the Autonomous Republic of Crimea. Please stay safe
• 14:30
  Speaker 1: in Kiev. We've got some good earnings today. We had
• 14:36
  Speaker 1: FedEx put up some good numbers. Um, we had who
• 14:40
  Speaker 1: was it, Ni Nike put up some some really good numbers.
• 14:44
  Speaker 1: And that's not really responding. So we're gonna break that down.
• 14:47
  Speaker 1: Let's start with FedEx and Lee Glasgow. He's the analyst
• 14:51
  Speaker 1: at Bloomberg Intelligence. He fills FedEx railroads, trucks, shipping companies, logistics,
• 14:57
  Speaker 1: air freight, all that stuff, all those companies that moved
• 15:01
  Speaker 1: stuff around. One of the best beats. Yeah, and I
• 15:05
  Speaker 1: that was my beat back in the day, you know,
• 15:07
  Speaker 1: starting in seven covered a little bit of everything I have,
• 15:11
  Speaker 1: and I have I've made money every step along the way.
• 15:14
  Speaker 1: I'll mention um, you know, humble brig there Hayley, you're
• 15:18
  Speaker 1: the expert here FedEx. I mean, I don't know. I
• 15:20
  Speaker 1: was sitting in front of the Starbucks and Summit yesterday.
• 15:23
  Speaker 1: To the right of me is ups. To the left
• 15:26
  Speaker 1: of me was the FedEx door. Both places headlines out
• 15:30
  Speaker 1: the door, people you know jump, you know, juggling boxes.
• 15:35
  Speaker 1: What did FedEx have to say today, Well, hey, Paul,
• 15:39
  Speaker 1: thanks for having me, and I hope you helped those
• 15:40
  Speaker 1: people with all those boxes. FedEx had really a mixed
• 15:43
  Speaker 1: message last night. You know, there was some good news.
• 15:46
  Speaker 1: They did beat expectations, which is fantastic. You know, they
• 15:48
  Speaker 1: beat it by about thirty eight cents, which is which
• 15:51
  Speaker 1: is great. They also announced another billion dollars in savings.
• 15:55
  Speaker 1: But what they also did is reset earnings expectations for
• 15:58
  Speaker 1: the second half lower about fourteen to fift at the
• 16:02
  Speaker 1: high end of the range um. And the reason is
• 16:05
  Speaker 1: is that volume for them is slowing more considerably. There's
• 16:09
  Speaker 1: two things going on. Uh there's the obviously we're we're
• 16:12
  Speaker 1: going you know, we kind of like the pendulum swung
• 16:15
  Speaker 1: really far during the pandemic where everyone was ordering stuff,
• 16:18
  Speaker 1: and now the pendulum is coming back uh to you know,
• 16:23
  Speaker 1: uh to to be for when we're talking about e commerce,
• 16:26
  Speaker 1: e commerence demands going to be above pre pandemic level,
• 16:30
  Speaker 1: but not at the peaks that we saw during the pandemic.
• 16:32
  Speaker 1: So the volume from there is going away. And then
• 16:35
  Speaker 1: you have, you know, global economic issues, whether if we're
• 16:39
  Speaker 1: talking about in the United States, obviously we're having our
• 16:42
  Speaker 1: economic growth is moderating, humor, competence is waning, Inflation is
• 16:47
  Speaker 1: impacting how much stuff people are buying. Europe you have
• 16:50
  Speaker 1: a much weaker economic backdrop. And then China, China, you know,
• 16:54
  Speaker 1: there's some headlines out there that they're opening up their economy,
• 16:57
  Speaker 1: but the reality is it's it's really a slow opening
• 17:01
  Speaker 1: and uh, there's a lot of issues there. And so
• 17:03
  Speaker 1: what FedEx is doing is their parking planes. They're you know,
• 17:06
  Speaker 1: kind of putting off some some projects maybe into later
• 17:10
  Speaker 1: into next year to see where the economy is heading.
• 17:14
  Speaker 1: And and part of also the good news, you know,
• 17:16
  Speaker 1: in addition to the beats that they've been doing on
• 17:19
  Speaker 1: the earning side, was that they were able to raise
• 17:21
  Speaker 1: rates that you know, they still have pricing power, which
• 17:25
  Speaker 1: is which is which is a good sign, especially you
• 17:27
  Speaker 1: know when when volumes are are coming in and so
• 17:31
  Speaker 1: you know, they announced a billion dollars more in in
• 17:34
  Speaker 1: cost savings. I think those cost savings are more reactive
• 17:37
  Speaker 1: to the volumes, uh, and so they're probably more flexible,
• 17:40
  Speaker 1: meaning that when volumes come back on, they're going to
• 17:43
  Speaker 1: probably bring on some of those costs. But they're also
• 17:46
  Speaker 1: looking at about four billion dollars in structural costs that
• 17:48
  Speaker 1: they're looking to uh totally get out of their system.
• 17:53
  Speaker 1: Good stuff from FedEx. We also and presumably some of
• 17:56
  Speaker 1: those FedEx boxes were carrying Nike shoes and apparel. Put
• 18:01
  Speaker 1: them Coil. She covers all the retail stuff for Bloomberg Intelligence.
• 18:05
  Speaker 1: A teammate of Lee classgow there and Bloomberg Intelligence put
• 18:08
  Speaker 1: them talk to us about Nike. Some pretty good numbers there.
• 18:11
  Speaker 1: The markets seem to like what we heard from Nike. Yeah,
• 18:15
  Speaker 1: they continue to execute and their innovation remains a key driver.
• 18:19
  Speaker 1: Told better sale that fool price, even after passing on
• 18:22
  Speaker 1: price increases earlier this year. UM, it was really encouraging
• 18:26
  Speaker 1: to see the constant currency sales games of about twenty
• 18:29
  Speaker 1: seven fix consis quarter, and they raised guidance for the
• 18:32
  Speaker 1: full year from low double digits to low team. So
• 18:35
  Speaker 1: I think overall, they just continue to show that they
• 18:38
  Speaker 1: can execute. It's a team that can use innovation and
• 18:41
  Speaker 1: execution at their advantage to really deliver in me customer demand.
• 18:46
  Speaker 1: Well put them let me ask you about that and
• 18:48
  Speaker 1: then like ly to to hop into this as well.
• 18:51
  Speaker 1: But when we talk about things like price increases for example,
• 18:54
  Speaker 1: or and um for for for Nike, but also I
• 18:58
  Speaker 1: mean you cover up I mean other retailers as well.
• 19:01
  Speaker 1: We talk about price increases and the future of whether
• 19:04
  Speaker 1: or not those price increases are gonna stay sticky. It's
• 19:06
  Speaker 1: not like when inflation comes down all of a sudden,
• 19:09
  Speaker 1: a lot of these retailers or even shipping companies like
• 19:11
  Speaker 1: FedEx are going to decrease their prices. So if that's
• 19:14
  Speaker 1: the view, then shouldn't the stop just go up and
• 19:18
  Speaker 1: up and up from here? I mean, yes, they can
• 19:21
  Speaker 1: hold the price increases, especially for NIKEE for the innovation
• 19:24
  Speaker 1: that they have, the new products, especially their strong footwear franchises.
• 19:28
  Speaker 1: But um, there is margin concern right They have actiss inventory.
• 19:32
  Speaker 1: Their inventory was up north to forty percent at the
• 19:34
  Speaker 1: end of the quarter. It was down three percent from
• 19:37
  Speaker 1: last quarter and night signal digits on a unit basis,
• 19:40
  Speaker 1: which is a sign that they're making products, but a
• 19:43
  Speaker 1: lot more work still needs to be done. We will
• 19:46
  Speaker 1: see more discounting, not against those products that are just
• 19:50
  Speaker 1: being introduced, but you know some of the age inventory
• 19:52
  Speaker 1: people like to call it that. Um, there will be
• 19:55
  Speaker 1: more promotions. They're gonna be selling more into all price
• 19:57
  Speaker 1: to clear that inventory. And that's kind to what I'm
• 20:00
  Speaker 1: watching for, because that's all we the catch two when
• 20:05
  Speaker 1: you have to be careful how you sell an all
• 20:08
  Speaker 1: strife under Armour went through this and too much inventory
• 20:11
  Speaker 1: there isn't good for brand Heat in the long term.
• 20:15
  Speaker 1: You know, it's great to have put them goil and
• 20:16
  Speaker 1: in class go on at the same time because we
• 20:18
  Speaker 1: can really you know, circulate and talk about the consumer here.
• 20:22
  Speaker 1: We had the conference board released some data this morning.
• 20:25
  Speaker 1: Consumer competence data came in much better than expected for
• 20:27
  Speaker 1: the month of December and the expectations Stata point was
• 20:30
  Speaker 1: also a big improvement from last month. So UM consumers
• 20:34
  Speaker 1: still seem to be in decent shape. So leaves. As
• 20:36
  Speaker 1: you listen to the Fedexes of the world, how do
• 20:39
  Speaker 1: they view the consumer as they look out to next year?
• 20:43
  Speaker 1: I mean I think they they they they from their outlook,
• 20:47
  Speaker 1: I mean they're looking for, you know, global economic moderating growth,
• 20:52
  Speaker 1: and so you know that is obviously being driven for
• 20:55
  Speaker 1: their businesses by the consumer. UM. And I think that
• 20:59
  Speaker 1: you know, they're kind of outlooked for decreasing costs. Even
• 21:03
  Speaker 1: more is based on that outlook that volumes are probably
• 21:06
  Speaker 1: going to be pretty weak in the first half of
• 21:08
  Speaker 1: the year, with you know, fingers cross a better outlook
• 21:11
  Speaker 1: for the second half of the year. Um, because you know,
• 21:14
  Speaker 1: with all the moves that the Fed is making, it
• 21:16
  Speaker 1: is pretty clear that you know, is gonna tamp down
• 21:19
  Speaker 1: the brakes on the economy eventually and put them again
• 21:24
  Speaker 1: just from the consumer, just give us a sense of
• 21:26
  Speaker 1: how do you think this this holiday season will be about. Seconds. Sure,
• 21:30
  Speaker 1: so far the holiday season looks good. There will be promotion,
• 21:33
  Speaker 1: but the consumer they're spending. Um. Not everyone will win
• 21:35
  Speaker 1: the season. There will be mixed results, but we think
• 21:38
  Speaker 1: the strong brand will continue to show out performance over
• 21:41
  Speaker 1: the weekend. One all right, good stuff. I have no
• 21:43
  Speaker 1: intention of shopping, but that's just me put them Goyle.
• 21:46
  Speaker 1: She's on a T day and folks here in Bloomberg speak,
• 21:49
  Speaker 1: that means she's on vacation today. But she still talked
• 21:51
  Speaker 1: the time to come check in with us and give
• 21:53
  Speaker 1: us a sense of what's going on there with the
• 21:55
  Speaker 1: retailers and Nike in particular, put them Goyle. She covers
• 21:58
  Speaker 1: retail for Bloomberg Intelligence, and Class Cow covers all the
• 22:01
  Speaker 1: transportation and logistics stuff for Bloomberg Intelligence again for world
• 22:05
  Speaker 1: class investment research. B I go r J. Gellow. He
• 22:13
  Speaker 1: is with Federated Hermes. He's been doing this for a while.
• 22:17
  Speaker 1: He's the senior portfolio manager there. R J. I. I'm
• 22:21
  Speaker 1: gonna take just a second here and we'll look back
• 22:23
  Speaker 1: and then we're gonna move forward. But looking back on
• 22:26
  Speaker 1: I bet even in your esteemed career, you haven't seen
• 22:28
  Speaker 1: a year in fixed income like we did in two
• 22:31
  Speaker 1: How do you kind of put that in context? Well,
• 22:35
  Speaker 1: pretty much nobody has the the the Bloomberg you know index,
• 22:41
  Speaker 1: the Bloomberg Ags so to speak. Uh, currently is down
• 22:45
  Speaker 1: on a year today basis because we've had a bit
• 22:47
  Speaker 1: of a recovery lately, but it's still down a whopping twelve.
• 22:51
  Speaker 1: That's the worst performance in the history of the index.
• 22:53
  Speaker 1: The index only goes back to. As a result, there
• 22:56
  Speaker 1: has been some academic takes on you know, how bad
• 23:00
  Speaker 1: of bond return has been and I've seen a couple
• 23:02
  Speaker 1: of different stories from different sources basically saying that since
• 23:05
  Speaker 1: basically the Washington administration, like George Washington administration, we haven't
• 23:10
  Speaker 1: seen treasuries perform as badly as they just did. Treasuries
• 23:13
  Speaker 1: are down eleven point six five until the return this year.
• 23:16
  Speaker 1: So this has been an astounding experience. And it's all
• 23:21
  Speaker 1: directly linked to the surgeon inflation to over forty year highs,
• 23:25
  Speaker 1: and the Central Bank, the FED and others efforts to
• 23:28
  Speaker 1: counter what has it essentially been a global inflation shock
• 23:30
  Speaker 1: as the pandemic eased and the world surged, often spurred
• 23:36
  Speaker 1: by monetary and fiscal policy. All right, not only do
• 23:38
  Speaker 1: we have r. J. Gallo from Federate Hermes here, but
• 23:41
  Speaker 1: we also have Katarina Semonetti, Senior VP at Morgan Stanley
• 23:44
  Speaker 1: Private Wealth Management joining us here and Katarina, you know,
• 23:46
  Speaker 1: as we just heard from r J. Brutal, brutal as
• 23:50
  Speaker 1: it relates to fixed income, Marco, what are you telling
• 23:52
  Speaker 1: your clients here looking forward to Well, it certainly has
• 23:58
  Speaker 1: been challenging year. You know, it's is getting seemingly close
• 24:01
  Speaker 1: to the end of the tightening cycle. We probably are
• 24:04
  Speaker 1: going to get another rate high Confebruary first, you know,
• 24:07
  Speaker 1: but that might be it. And when you think about
• 24:09
  Speaker 1: you know, the twenty two twenty two was defined by
• 24:12
  Speaker 1: the FED and inflation and interest rates, and we think
• 24:15
  Speaker 1: that it's going to be a different story in twenty three.
• 24:18
  Speaker 1: We think that there are two major stories to watch
• 24:20
  Speaker 1: in twenty three, and one, of course, this recession, whether
• 24:23
  Speaker 1: we're going to get a recession and what kind of
• 24:26
  Speaker 1: recession is going to be and hopefully short and shallow,
• 24:29
  Speaker 1: but you know, of course that means to be seen.
• 24:31
  Speaker 1: And the second one, you know, I would even say
• 24:33
  Speaker 1: a bigger story would be earnings revisions and this could
• 24:37
  Speaker 1: result in significant downside before we can comfortably call the
• 24:41
  Speaker 1: end of this bear market and might catch some investors
• 24:44
  Speaker 1: by surprise. So we're telling our clients to be ready
• 24:47
  Speaker 1: for it, to be ready for a continued volatility before
• 24:49
  Speaker 1: things get better. But what does continued volatility even look like?
• 24:54
  Speaker 1: It kind of makes me think that if things have
• 24:56
  Speaker 1: been so volatile in two, is the tolerance for volatility
• 24:59
  Speaker 1: in twenty twenty three that much higher? So for example,
• 25:02
  Speaker 1: a VIX of twenty for example two years ago, um
• 25:06
  Speaker 1: or even three years ago, pre COVID would have been
• 25:08
  Speaker 1: um an extreme number to look at. Now it's completely normal.
• 25:12
  Speaker 1: Do you think the tolerance for volatility has increased and
• 25:14
  Speaker 1: will increase in Well, there is there is a chance
• 25:19
  Speaker 1: that that might be the case, because you know, we
• 25:21
  Speaker 1: get used to things that we get used to, you know,
• 25:24
  Speaker 1: the volatility, you know, but the question is what will
• 25:27
  Speaker 1: it take to actually get us out of the spare market.
• 25:31
  Speaker 1: And once the earnings are significantly revised, you know, they
• 25:35
  Speaker 1: will actually reflect this the true state of our economy
• 25:39
  Speaker 1: and we will set the earnings expectations to a more
• 25:42
  Speaker 1: realistic level and this might you know, be the path
• 25:46
  Speaker 1: that will allow the companies to actually beat earnings and
• 25:49
  Speaker 1: exceed earnings and will be that pivot that we're looking
• 25:51
  Speaker 1: for into the next bol market. So volatility, you know,
• 25:55
  Speaker 1: can look in various different ways, and things might get worse,
• 25:58
  Speaker 1: significantly worse before they get better. But we do think
• 26:01
  Speaker 1: that the end is inside and there are things that
• 26:04
  Speaker 1: we can do, you know, to r G point. You know,
• 26:06
  Speaker 1: interest rates are higher, you know, there's value you know
• 26:09
  Speaker 1: in sixed income. You know, this is you know, it
• 26:11
  Speaker 1: was unbelievably challenging environment in twenty two you know. To
• 26:16
  Speaker 1: my in my view, I think it's a better environment,
• 26:18
  Speaker 1: you know, going forward, but we should still stay defensive.
• 26:21
  Speaker 1: Investors should, you know, pivot and look for the dividend
• 26:24
  Speaker 1: things stock sectors like health care, financial industrials, and look
• 26:29
  Speaker 1: for the dips in the market to improve both the
• 26:32
  Speaker 1: quality of their investment portfolios, but also as opportunists advise.
• 26:37
  Speaker 1: Hey r J. Just following up on Katarina's point there.
• 26:40
  Speaker 1: I'm an equity analyst by trade, so you know, when
• 26:44
  Speaker 1: I see or when I hear experts like you say, hey,
• 26:47
  Speaker 1: we haven't seen this kind of underperformance and fixed income
• 26:49
  Speaker 1: like ever, my simple responses, all right, I'm jumping in
• 26:53
  Speaker 1: the deep end of the pool. Um, if I want
• 26:55
  Speaker 1: to go along some fixed income in three where should
• 26:59
  Speaker 1: I start? Well, it's a good question, and I think
• 27:03
  Speaker 1: Katerina hit the nail on the head. I mean, typically
• 27:05
  Speaker 1: in this business, you do better off and you buy
• 27:07
  Speaker 1: low right. Uh. And the largest losses since the Washington
• 27:10
  Speaker 1: administration and Treasury suggests it's pretty low. Uh. The the
• 27:14
  Speaker 1: yield on the egg, just to go back to it again,
• 27:18
  Speaker 1: UH is now around four and a half percent. UH.
• 27:21
  Speaker 1: It was well below one percent in July. There's been
• 27:24
  Speaker 1: a big, big move, and I think opportunities are being created.
• 27:28
  Speaker 1: Gave a presentation recently here in Pittsburgh that the bond
• 27:34
  Speaker 1: storm clouds are starting to clear, which suggests that we've
• 27:38
  Speaker 1: gone back to UH to slightly short and sometimes neutral
• 27:41
  Speaker 1: over the last three or four months. We were much
• 27:43
  Speaker 1: more aggressively short and our actively managed fixing and come
• 27:46
  Speaker 1: portfolios for most of the last eighteen months. So we're
• 27:49
  Speaker 1: of the view now that we're getting to a position
• 27:51
  Speaker 1: where the FED is nearly done, the FED terminal rates
• 27:54
  Speaker 1: probably going to be give or take around five. The
• 27:57
  Speaker 1: bond markets probably still touch rich for that. That's partly
• 28:00
  Speaker 1: because I think the expectations of her session are so widespread.
• 28:04
  Speaker 1: UM bottom line, we think you should be legging into
• 28:06
  Speaker 1: fixed income UM getting out of UH you know, short
• 28:10
  Speaker 1: term or even cash. Cash has been great. Cash gave
• 28:13
  Speaker 1: you a positive nominal return in two and beat everything else.
• 28:16
  Speaker 1: Cash was king. We think it's gonna lose its crown
• 28:19
  Speaker 1: moving forward, and fixed incomes getting more attractive. We have
• 28:23
  Speaker 1: at our firm intermediate and total return bond funds at
• 28:26
  Speaker 1: various sectors that are taking more duration risk, and people
• 28:29
  Speaker 1: thought they were comfortable with in two for sure, but
• 28:32
  Speaker 1: we think that they're getting much more appealing as we
• 28:34
  Speaker 1: look forward as into twenty three. Well. R J talked
• 28:37
  Speaker 1: to us a little bit more about the bond market here.
• 28:39
  Speaker 1: If you start to see FED cuts priced later than
• 28:43
  Speaker 1: the back half of which is where they stand right now,
• 28:46
  Speaker 1: how high could yields go? Now? It's a great question.
• 28:50
  Speaker 1: You know a lot of people are very focused on
• 28:52
  Speaker 1: the terminal rate, and oftentimes that even the ten year
• 28:54
  Speaker 1: treasury didn't seem to flash value until it hit the
• 28:59
  Speaker 1: terminal rate. And if the turn rate is going to
• 29:00
  Speaker 1: be five, the ten years due low it's a three
• 29:02
  Speaker 1: sixties seven. But the reason for that is, UH, the
• 29:06
  Speaker 1: shocking pace of monetary tightening UH is apt to take
• 29:11
  Speaker 1: some prisoners in terms of creating recession in the U.
• 29:15
  Speaker 1: S economy and elsewhere we're seeing the same type of risk.
• 29:18
  Speaker 1: That's why the Vaughan market is pricing right now with
• 29:20
  Speaker 1: the trajectory of FED yields out say ten years that
• 29:23
  Speaker 1: doesn't have a five handle, doesn't even have a four handle,
• 29:26
  Speaker 1: because the expectation is that the shocking monetary tightening that
• 29:29
  Speaker 1: we've gone through and is nearly complete, is not going
• 29:32
  Speaker 1: to characterize the next ten years. Um. The two years
• 29:36
  Speaker 1: and the three year are particularly interesting. They're around four
• 29:39
  Speaker 1: round four. They're probably a little too low to be
• 29:41
  Speaker 1: frank Um, I would think the two years should be
• 29:44
  Speaker 1: closer to four forty or four fifty, which would suggest
• 29:46
  Speaker 1: the Fed gets to five, it holds it there and
• 29:49
  Speaker 1: by their own dots, by their own dots, which people
• 29:52
  Speaker 1: think the dots go back. The dots wily got back
• 29:55
  Speaker 1: ten years. So you know, we got to use them.
• 29:57
  Speaker 1: There are a new tool. They allow you to shape
• 29:59
  Speaker 1: some expectations. And in the marketplace, of course, they move
• 30:01
  Speaker 1: as facts change. But by the Fed's own plan in
• 30:04
  Speaker 1: the dots, they're easing to around four percent in so
• 30:10
  Speaker 1: so the two years shouldn't be at five, It should
• 30:12
  Speaker 1: be four fifty or four forty. We're almost there. Most
• 30:15
  Speaker 1: of the bond losses are behind you. You should. Bonds
• 30:18
  Speaker 1: are going to start behaving in the manner that we
• 30:20
  Speaker 1: as investment professionals county to believe they should behave, which
• 30:23
  Speaker 1: is an anchor to your portfolio, a bit of a
• 30:26
  Speaker 1: hedge to your equities that didn't work this year, We
• 30:28
  Speaker 1: think it will start working going forward. All right, Catarina,
• 30:34
  Speaker 1: just real quick thirty seconds. When you when you hear
• 30:36
  Speaker 1: from your clients today these days here at the end
• 30:39
  Speaker 1: of the year, what are they asking you about, Well,
• 30:42
  Speaker 1: they're asking for the outlook for twenty three and here's
• 30:45
  Speaker 1: what we tell them. We tell them that they need
• 30:47
  Speaker 1: to be more strategic with their views of economy, policy,
• 30:51
  Speaker 1: earnings and valuations and use tactical rollies, free balancing and
• 30:55
  Speaker 1: negative you know, downturns for tact loss harvesting. You know,
• 30:59
  Speaker 1: So we just will have to be more selective. But
• 31:01
  Speaker 1: this is definitely a stock picker's market that offers a
• 31:03
  Speaker 1: lot of opportunity. Like Katerina, thanks so much for joining
• 31:06
  Speaker 1: us as always, Katerina Semenetti, Senior vice president and Morgan
• 31:10
  Speaker 1: Stanley Private Wealth Management and R. J. Gallo, Senior portfolio Manager,
• 31:13
  Speaker 1: it UH Federated Hermes joining us here. A little roundtable,
• 31:16
  Speaker 1: little fixed income, a little broader markets here. Um, you know,
• 31:19
  Speaker 1: I think kind of the message we're hearing from some
• 31:21
  Speaker 1: of the smart people that we talked to is there's
• 31:23
  Speaker 1: some light at the end of the tunnel. But um,
• 31:25
  Speaker 1: you know, don't get too aggressive too quickly here. But
• 31:29
  Speaker 1: I don't know when I see fixed income returns like
• 31:31
  Speaker 1: that I'm thinking, Wow, I might want to jump in
• 31:33
  Speaker 1: there stock Evies, you know, because I'm not a car
• 31:38
  Speaker 1: geek like Matt Miller. But I did drive the Ford
• 31:41
  Speaker 1: f one fifty thanks to Matt Miller hooking me up
• 31:43
  Speaker 1: with his Ford buddies, like three or four days. It
• 31:45
  Speaker 1: was awesome strength for you. And he told me he
• 31:47
  Speaker 1: would take me to like test drive cars and that
• 31:51
  Speaker 1: never happened. He needs to make good on some of
• 31:52
  Speaker 1: the Lamborghini stuff that he talks about, but let's talk Evies.
• 31:55
  Speaker 1: It is really an interesting business, totally upending the auto
• 32:00
  Speaker 1: industry around the world. Xeno Mercer joins us here in
• 32:03
  Speaker 1: our Bloomberg Interactive Broker studios, so he gets a gold star.
• 32:05
  Speaker 1: He's a research channels for Robot Global Zino. Thanks so
• 32:08
  Speaker 1: much for joining us here. I mean, give us a
• 32:11
  Speaker 1: sense of where we are, like in a nine inning
• 32:13
  Speaker 1: ball game. Where are we in the transformation from you know,
• 32:17
  Speaker 1: internal combustion engines to e VS Do you think? Good question?
• 32:21
  Speaker 1: And thanks for having me on today. Um, I mean
• 32:23
  Speaker 1: right now the US, you know, if we're looking at
• 32:26
  Speaker 1: markets and penetration rates of e VS two ice internal
• 32:30
  Speaker 1: combustion engines globally we're at five percent, California is at
• 32:33
  Speaker 1: FI EU is way ahead. You've got you know, Norway
• 32:37
  Speaker 1: I think has a majority of sales as e V s,
• 32:40
  Speaker 1: and then China's you know, even higher still, so we're
• 32:44
  Speaker 1: kind of lagging behind. So if you kind of look
• 32:45
  Speaker 1: at from a global perspective, I mean, we're in the
• 32:47
  Speaker 1: second ending and you know, you have people who've never
• 32:49
  Speaker 1: even been in e V today, So that's a lot
• 32:53
  Speaker 1: of them until just just recently, well in the EV space,
• 32:55
  Speaker 1: and I think electrification, I immediately think China the leader
• 32:59
  Speaker 1: of it. And it's interesting when we talk about China,
• 33:01
  Speaker 1: talk about Deero, COVID, we talk about your political tensions,
• 33:03
  Speaker 1: we don't necessarily talk about competition for the e V space.
• 33:06
  Speaker 1: What's your take, Yeah, so I mean competition in the
• 33:09
  Speaker 1: e V space. I mean, think about the timeline here.
• 33:12
  Speaker 1: Ten years ago the Model S was released by Tesla,
• 33:15
  Speaker 1: so we're just ten years into this. Yeah, so happy
• 33:17
  Speaker 1: anniversary to the Models. But I mean, right now, you've
• 33:20
  Speaker 1: got Ford, You've got GM, You've got incumbents that are
• 33:23
  Speaker 1: retooling and rebuilding, manufacturing plants, pouring billions in the new plants.
• 33:28
  Speaker 1: Fords putting their biggest Campex investment into building plants such
• 33:32
  Speaker 1: as their Blue Oval city outside of Memphis, Tennessee. Right now, Um,
• 33:35
  Speaker 1: and that that's happening. So I think you're seeing, Um,
• 33:38
  Speaker 1: you're gonna be seeing lots of competition. Tesla's market SHARE's
• 33:42
  Speaker 1: job from around sev down to six and um, you
• 33:46
  Speaker 1: know it's I think. And then you look at global
• 33:48
  Speaker 1: numbers and other manufacturers worldwide, Um, you're gonna see a
• 33:52
  Speaker 1: more I guess even ball field and playing field when
• 33:55
  Speaker 1: all these other UH car manufacturers get up the speed
• 33:58
  Speaker 1: from that production lines. But that's gonna take some time
• 34:00
  Speaker 1: and investment into these robotics, manufacturing automation lines. UH to
• 34:05
  Speaker 1: build that out. Took us about some of the raw
• 34:08
  Speaker 1: materials and the rare materials that are required for e
• 34:11
  Speaker 1: v s. Where are the choke points. Somebody was telling
• 34:13
  Speaker 1: me recently that you've gotta go to Africa to get
• 34:16
  Speaker 1: some of these rare metals. And in China is really
• 34:18
  Speaker 1: investing in Africa, the US is not. That might be
• 34:20
  Speaker 1: a risk for the whole electrification of the global auto fleet.
• 34:24
  Speaker 1: What's the risk here for some of those UH raw
• 34:27
  Speaker 1: materials needed? Sure? Yes, So I mean right now a
• 34:30
  Speaker 1: majority of batteries used in cars are you know, based
• 34:32
  Speaker 1: on lithium, cobalt other materials like that. And yes, there
• 34:36
  Speaker 1: are specific kind of choke points there, which is why
• 34:39
  Speaker 1: there's lots of interest and intriguing and kind of just
• 34:42
  Speaker 1: from a sourcing and sustainability, cost and environmental perspective, they're
• 34:46
  Speaker 1: looking for ways to use other battering materials and reduced
• 34:48
  Speaker 1: it dependence on those materials. So I think when you're
• 34:52
  Speaker 1: looking at looking forward how the industry is going to evolve,
• 34:55
  Speaker 1: They're going to use different materials. You've got companies coming up,
• 34:58
  Speaker 1: you know, IBM, You've got top AI companies around the
• 35:01
  Speaker 1: world that are trying to figure out how to kind
• 35:03
  Speaker 1: of eliminate that that sourcing risk. But most of the
• 35:08
  Speaker 1: companies that are building pipelines of evs have already sourced
• 35:12
  Speaker 1: and secured direct pipeline from providers of those So I mean,
• 35:16
  Speaker 1: at least for the medium term length that they're they're
• 35:20
  Speaker 1: all pretty much squared away. Paul, I have a fun
• 35:22
  Speaker 1: fact for you. When Tesla was first uh rising in
• 35:28
  Speaker 1: whatever you saw the stock just kind of go up
• 35:31
  Speaker 1: and up and up, um cobalt prices and Tesla prices.
• 35:34
  Speaker 1: If you overlaid. The charts were identical. For this exact reason,
• 35:38
  Speaker 1: the idea that EV batteries required cobalt and I think
• 35:41
  Speaker 1: for the time lithium as well. It was like a
• 35:43
  Speaker 1: way to play Tesla through the commodities angle. Just a
• 35:46
  Speaker 1: little fun fact for you, but then talk to us
• 35:48
  Speaker 1: again about the sourcing there because one of the things
• 35:51
  Speaker 1: another fun fact that Ed Ludlow or Bloombrick technology anchor
• 35:54
  Speaker 1: and correspondence spoke to me about was that Tesla one
• 35:57
  Speaker 1: of the things that they do really well is build
• 35:59
  Speaker 1: their factory right where the commodities are kind of located.
• 36:02
  Speaker 1: So the supply chain issues you saw on the rest
• 36:04
  Speaker 1: of the car industry, Tesla didn't necessarily have to deal
• 36:07
  Speaker 1: with them on the same scale. Is that a type
• 36:09
  Speaker 1: of model that you think might be adopted more broadly. Yeah,
• 36:13
  Speaker 1: I think it's not just you know, source materials for batteries,
• 36:16
  Speaker 1: it's kind of the whole component. I mean right now, Uh,
• 36:19
  Speaker 1: these car manufacturers are building their their their plants with
• 36:23
  Speaker 1: you know, additive manufacturing, three D printing, I mean for
• 36:26
  Speaker 1: different parts. So yes, the whole world saw semiconductor shortages
• 36:30
  Speaker 1: and then nie products that that that really impacted their
• 36:33
  Speaker 1: ability to UM the liver products at a at a
• 36:37
  Speaker 1: and make margin. And I think I think it was
• 36:39
  Speaker 1: Toyota decided to slow down and their ramp up because
• 36:43
  Speaker 1: they just the component costs got too high. So ultimately, uh,
• 36:48
  Speaker 1: you will see more streamline production and manufacturing and you know,
• 36:53
  Speaker 1: custom builds for their for all the parts and components
• 36:57
  Speaker 1: to go into these plants. Robotics people tell me that's
• 37:00
  Speaker 1: a big part of this new wave of auto manufacturing. Right,
• 37:05
  Speaker 1: So I think, you know, there are a couple of
• 37:07
  Speaker 1: reasons why we're seeing re shoring in the US. And
• 37:12
  Speaker 1: and you know, I think yesterday Tesla announced a new
• 37:14
  Speaker 1: Giga factory in Mexico, but UM increased automation. So this
• 37:19
  Speaker 1: is just designing the system to be more automated, safer.
• 37:22
  Speaker 1: You've got robot arms that are able to manipulate and
• 37:24
  Speaker 1: move large pieces of the vehicles. Now, automation and robots
• 37:29
  Speaker 1: in the warehouse and manufacturing plants isn't new. That's been
• 37:31
  Speaker 1: around for fifty years. But they're getting better. They're getting faster.
• 37:34
  Speaker 1: They're able to do things that UM at a lower
• 37:36
  Speaker 1: cost and faster cycle rate to enable uh, you know,
• 37:40
  Speaker 1: better economies of scale. So while you know, for example,
• 37:43
  Speaker 1: China has been leading manufacturing globally for many many years.
• 37:46
  Speaker 1: The ability and a lot of that was just human
• 37:48
  Speaker 1: labor cost they were they had better, you know, lower
• 37:51
  Speaker 1: input costs on that end, and they had some materials.
• 37:53
  Speaker 1: But in the US, we're looking at cobots which can
• 37:56
  Speaker 1: do kind of some more some more of the fine tuning,
• 37:58
  Speaker 1: the more manipulation and placements things like that, not just
• 38:02
  Speaker 1: assembling together. So UM, these robot companies like Pinook, Terra
• 38:06
  Speaker 1: dyne Um, they're they're getting major placements and orders by
• 38:11
  Speaker 1: these car manufacturers that not just cars. You've got UM
• 38:14
  Speaker 1: battery plants, You've got solar energy plants. So the Inflation
• 38:18
  Speaker 1: Reduction Act that just came out earlier this year, UM
• 38:22
  Speaker 1: put a lot of money. There's benefits. There's UH loans
• 38:26
  Speaker 1: available for building these manufacturing plants, so we have less
• 38:30
  Speaker 1: risk from depending on other countries. Thirty seconds, just your
• 38:34
  Speaker 1: overview of charging stations. Where are we It seems like
• 38:37
  Speaker 1: we need a lot more of those over the next
• 38:39
  Speaker 1: coming years. Yeah. So, I mean you've got the government
• 38:42
  Speaker 1: and individual car manufacturers and batteries that are all looking
• 38:45
  Speaker 1: to build this out. Since they're kind of all going
• 38:48
  Speaker 1: all in looking to get you know, fifty percent of
• 38:51
  Speaker 1: their their sales. You've got the EU looking to get
• 38:54
  Speaker 1: electric vehicles by um. Yes, there's gonna be lots of
• 38:59
  Speaker 1: level three level four charging, which you know, level four
• 39:01
  Speaker 1: charging really isn't out yet. That's one mega watt. But
• 39:04
  Speaker 1: once you can charge you know, entire semi trucks in
• 39:07
  Speaker 1: fifteen minutes, thirty minutes, etcetera, then we're gonna have, um,
• 39:12
  Speaker 1: you know, major major adoption, major adoption. That's kind of
• 39:15
  Speaker 1: what a lot of folks are looking for. Zeno Mercer,
• 39:17
  Speaker 1: thanks so much for joining us. Zenni Mercery's the research channels,
• 39:20
  Speaker 1: robo Global joining us here in our Bloomberg Interactive Broker Studio.
• 39:27
  Speaker 1: Thanks for listening to the Bloomberg Markets podcast. You can
• 39:30
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• 39:34
  Speaker 1: podcast platform you prefer. I'm Matt Miller. I'm on Twitter
• 39:38
  Speaker 1: at Matt Miller three. Put on ball Sweeney I'm on
• 39:41
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• 39:44
  Speaker 1: catch us worldwide at Bloomberg Radio