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Big Tech to Spend $650 Billion This Year as AI Race Intensifies · Bloomberg Intelligence

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  Speaker 2: We got another data point last night in terms of
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  Speaker 2: how the market used this tech capex Amazon. They have
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  Speaker 2: to take the cake. Two hundred billion dollars in capex.
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  Speaker 2: That's well above what the consensus always guess. What the
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  Speaker 2: stock is trading down today. So let's get a sense
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  Speaker 2: of kind of where this tech spending theme is for
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  Speaker 2: this sector. Man Deep Singh he joins us here. He
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  Speaker 2: runs all the tech research for Bloomberg Intelligence. For those
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  Speaker 2: mandeep that we're looking for another data point to say,
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  Speaker 2: how does the market view tech spending? Did we get
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  Speaker 2: it last night with Amazon and now the stock trading
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  Speaker 2: off today.
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  Speaker 3: Yeah.
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  Speaker 4: I mean this was as big as they can get
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  Speaker 4: in terms of, you know, a capex number out of
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  Speaker 4: the hyperscalers, and probably because they went last in terms
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  Speaker 4: of you know, reporting earnings.
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  Speaker 3: But look, I think had they not gone that big,
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  Speaker 3: the stock would have been up because they've posted best
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  Speaker 3: AWS growth in the last three years and you know,
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  Speaker 3: sequentially things seem to be improving.
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  Speaker 2: Is just that two.
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  Speaker 3: Hundred billion dollar number and the fact that their margins
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  Speaker 3: are going down on the AWS side. That's why you
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  Speaker 3: see this kind of stock reaction and there wasn't enough
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  Speaker 3: justification to you know, ramp up capex by about fifty
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  Speaker 3: five percent to two hundred billion mandeep.
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  Speaker 5: How long are we going to see these massive increases
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  Speaker 5: in capex? I mean this was for twenty twenty six
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  Speaker 5: full year. I mean, are we going to see this
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  Speaker 5: for another two years, three years?
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  Speaker 6: Or have we?
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  Speaker 3: You know?
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  Speaker 5: Is there an end in sight? I guess is the question.
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  Speaker 3: So based on our work at least so far, we
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  Speaker 3: feel this is the peak capex growth. You will skill
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  Speaker 3: see growth, but it's not going to be of the
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  Speaker 3: same magnitude. I mean, twenty twenty six we are talking
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  Speaker 3: about a year where capex from the hyperscalers will grow
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  Speaker 3: almost sixty percent. So and last year we had twenty
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  Speaker 3: twenty four to twenty five was also seventy percent growth
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  Speaker 3: in capex. So we've gone from two hundred billion dollars
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  Speaker 3: or hyperscale capex to now six hundred and fifty billion dollars.
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  Speaker 3: I think that growth rate will certainly come down, but
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  Speaker 3: there's no doubt that you know, we are still in
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  Speaker 3: that part of the ES curve where you know, there
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  Speaker 3: is more demand and everyone has called out supply constraints
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  Speaker 3: and they would have grown faster had it not been
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  Speaker 3: for you know, the limited supply they had for AI infrastructure.
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  Speaker 2: So, Mandy, you talked to institutional investors all around the
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  Speaker 2: world here that focus exclusively on technology where they has
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  Speaker 2: there hasn't their narrative shifted about where and when into
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  Speaker 2: what degree this industry should invent AI has the fundamental
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  Speaker 2: view of AI and how this tech industry is going
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  Speaker 2: to get there? Has that changed among some of those big,
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  Speaker 2: big tech investors that are big shareholders in so many
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  Speaker 2: of these companies.
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  Speaker 3: Yeah, I mean, right now you see both you know,
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  Speaker 3: anxiety and some sort of panic as well in terms of,
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  Speaker 3: you know, the level of free cash flow that's going
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  Speaker 3: to get hurt because of this spend and how fast
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  Speaker 3: it's happening. I mean, the cloud market grew almost you know,
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  Speaker 3: twenty percent plus for a decade and everyone was fine.
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  Speaker 3: You could see you know, predictable free cash flows. This
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  Speaker 3: is a very big upfront spend, and look, it makes
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  Speaker 3: sense that you have to spend first to build the infrastructure.
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  Speaker 3: But I think you really have to take a leap
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  Speaker 3: of faith that all these companies that are putting, you know,
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  Speaker 3: two hundred billion dollars will see ROI s for their spend.
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  Speaker 3: And I think that's where there are question marks that
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  Speaker 3: some of them may not have that level of ROIC.
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  Speaker 3: So I think that's what's reflected in the panic so far.
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  Speaker 3: But there's no doubt that you know, workflows are changing
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  Speaker 3: and there are some real productivity benefits you're seeing out
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  Speaker 3: of this Vand you know.
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  Speaker 5: We talk about these numbers and we throw them around
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  Speaker 5: like their gospel. Six hundred and fifty billion from Big
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  Speaker 5: Tech this year, two hundred billion from Amazon. I mean,
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  Speaker 5: it's kind of squishy at the end of the day,
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  Speaker 5: mandeep because this is a lever that companies can toggle.
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  Speaker 5: So I wonder how reliable they are. Ryan Horn, who's
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  Speaker 5: one of our listeners, wants to know, is a risk
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  Speaker 5: to hire CAPEX from here or is it more that
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  Speaker 5: hyperscalers can pull back on what they say is their
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  Speaker 5: CAPEX plan.
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  Speaker 3: No, that's a very good point and Luk a company
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  Speaker 3: like Apple so far has resisted the urge to spend
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  Speaker 3: on Capex and now that they are leaning on Google.
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  Speaker 3: So that's where you know, Google raising Capex made a
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  Speaker 3: ton of sense this earning season because one they saw
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  Speaker 3: that steepest acceleration and crowd in fact, next year could
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  Speaker 3: be sixty percent growth in their cloud segment. And also
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  Speaker 3: Anthropic and Apple are new customers, you know, in terms
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  Speaker 3: of who will be using their compute. On the other hand,
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  Speaker 3: for an Amazon you have to ask you yourself, is
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  Speaker 3: open Ai the buyer for all of the compute that
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  Speaker 3: Microsoft is spending on. You know, Amazon is spending on,
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  Speaker 3: Oracle is spending on because it's going to come down
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  Speaker 3: to a handful of you know, foundational model players. Meta
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  Speaker 3: is on its own. It's spending, but it's not very
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  Speaker 3: clear open Ai needs all this compute.
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  Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 5: Under Armour one of the companies that reported earnings, and
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  Speaker 5: in line with the gains in the broader market, the
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  Speaker 5: stock is up eleven percent right now. This is a
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  Speaker 5: company that is still very much in restructuring mode. Put
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  Speaker 5: On Goel is our senior US e commerce and retail
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  Speaker 5: analysts here at Bloomberg Intelligence, and she's got more on this.
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  Speaker 5: So how low was the bar or did under Armour
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  Speaker 5: knock it out of the park with this latest report
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  Speaker 5: that has its stock soaring eleven percent.
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  Speaker 7: I'd say the bar was very low for under Armour.
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  Speaker 7: There's been a lot of conversation about will this turnaround
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  Speaker 7: take place, will it be a sustained turnaround in the
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  Speaker 7: past few months, especially with the loss of Steph Curry.
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  Speaker 7: So I think the bar was low. They did post
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  Speaker 7: respectable numbers. I'd still say that I'm still not completely
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  Speaker 7: sold on the story. Their biggest region, the US North America,
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  Speaker 7: sales right down ten percent. They're expected to be down
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  Speaker 7: eight percent in their fiscal year. So things aren't still
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  Speaker 7: you know, where we want them to be. And I've
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  Speaker 7: heard this narrative so many times where they kind of
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  Speaker 7: take out the low hanging fruit, get the inventory's right,
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  Speaker 7: get back into the right wholesale doors. We're repeating that.
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  Speaker 7: So for me, it's a way to watch situation.
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  Speaker 2: Still, when a brand like this loses a spokesperson like
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  Speaker 2: Steph Curry, how does that How material is that of
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  Speaker 2: a loss to financials?
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  Speaker 7: It's material for basketball? Right if under Armour is trying
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  Speaker 7: to make a steak into basketball and really compete with
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  Speaker 7: the Nike and even the Adidas are pumas of the
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  Speaker 7: world which have renowned basketball players supporting their brand, Nike notably,
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  Speaker 7: so the loss of Steph Curry is going to be
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  Speaker 7: a headwind. We estimate and what we've seen just by
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  Speaker 7: industry estimates is it's more than one hundred million dollar
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  Speaker 7: franchise that Steph Curry had with under Armour, So that's
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  Speaker 7: obviously now not going to be there.
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  Speaker 5: So we've also heard that the Warren Buffett of Canada
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  Speaker 5: Fairfax Financial has disclosed a roughly twenty two percent steak
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  Speaker 5: in under Armour. This came out about a month ago.
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  Speaker 5: How does that change how the company operates, how it
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  Speaker 5: moves forward? Is do we presume that Fairfax is going
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  Speaker 5: to be an activist investor or have some ideas on
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  Speaker 5: what under Armour does.
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  Speaker 7: I'm sure they'll have some ideas. Right now, what we're
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  Speaker 7: seeing under Armored do is follow the retail one on
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  Speaker 7: one playbook on a turnaround, which is, let's get out
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  Speaker 7: of off price, let's start selling more full price, let's
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  Speaker 7: pick our wholesale doors, and let's get product innovation front
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  Speaker 7: and center in front of the consumer. The question is
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  Speaker 7: right now that they can do that because they have
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  Speaker 7: very easy comparisons from prior years. As they begin to
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  Speaker 7: recoup and reset the bar, can they continue to grow
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  Speaker 7: and compete with the larger players, notably Nike and Adidas,
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  Speaker 7: And can they make a claim for their brand without
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  Speaker 7: leading sports personnels.
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  Speaker 2: Amazon also reported last night stock trading off people not
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  Speaker 2: real psyched about two hundred billion dollars a capex. I guess,
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  Speaker 2: but how did the retail business do?
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  Speaker 7: The retail business did very very well. I think they're
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  Speaker 7: continuing to gain share. We saw an increase in online
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  Speaker 7: retail sales low double digits that was impressive and show
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  Speaker 7: share gains. I think what's really neat about their retail
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  Speaker 7: business right now is all the investments that they're making
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  Speaker 7: in AI, especially Rufus. You know, it was interesting to me,
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  Speaker 7: and I guess I hadn't known. This is that Rufus
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  Speaker 7: can now execute an order for you. And that's pretty cool.
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  Speaker 7: If I say, I want, you know, this stereo for
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  Speaker 7: one hundred dollars, so watch the price when it gets
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  Speaker 7: to one hundred, it just buys it for me. That's
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  Speaker 7: a new way to shop. And they're definitely leaping forward
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  Speaker 7: into AI and making the bets with Rufus and Alexa Plus,
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  Speaker 7: which I thought were pretty interesting.
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  Speaker 5: I guess these would all be kind of value added
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  Speaker 5: services from Amazon. Does that mean that they're going to
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  Speaker 5: start raising fees for Amazon and Time for.
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  Speaker 7: Instance, You know they've raised fees periodically. They they're not
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  Speaker 7: ont to raise fees every year. So every several years,
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  Speaker 7: do we see a slight bump in price? We have,
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  Speaker 7: and the fees have gone up in the last ten
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  Speaker 7: years fifteen years quite substantially. But I'd say they're also
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  Speaker 7: giving you a lot more right with Prime Video, with
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  Speaker 7: just other things they make the Prime membership, if you
• 10:17
  Speaker 7: were ever to unbundle it, it's it's quite a great
• 10:20
  Speaker 7: value that you're still getting. And they talked a little
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  Speaker 7: bit about every day essentials now just being a bigger
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  Speaker 7: focus for them. It's surprising and it's it's mind boggling
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  Speaker 7: actually that it's one hundred and fifty billion dollar GMB
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  Speaker 7: business for them. That's pretty significant. That one out of
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  Speaker 7: three purchases are every day essential. That just means that
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  Speaker 7: you're going to Amazon for everything, going to.
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  Speaker 5: Little brand, Yeah, every day essentials. I don't know, it's
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  Speaker 5: just like their supermarket.
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  Speaker 2: Right, I think so. So thirty seconds left here Poonum
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  Speaker 2: based upon Amazon, maybe some other retailers you've heard from.
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  Speaker 2: How's the consumer doing?
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  Speaker 7: The consumer is doing just by you know, we have
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  Speaker 7: been waiting to see the consumerbile crack. We haven't seen
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  Speaker 7: that yet. The consumer is shopping, but they are being
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  Speaker 7: mindful and they're watching where they spend and how they
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  Speaker 7: spend it. So this is where brands like Amazon and
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  Speaker 7: the large retailers that have the power of scale to
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  Speaker 7: keep prices low do well.
• 11:16
  Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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• 11:37
  Speaker 2: Philip Marsh they had some pretty good numbers, and the
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  Speaker 2: stock's done well, double digit return this year, plus I
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  Speaker 2: get a three percent dividend yield.
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  Speaker 5: It's a consumer staple, and consumer staple is in right now.
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  Speaker 2: Ken Shay joins us senior consumer products analysts at Bloomberg Intelligence.
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  Speaker 2: Tell us about Philip Mars's and their quarter and what's
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  Speaker 2: their business outlook?
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  Speaker 8: Ken, Yeah, Hi, pol If Philip Morris had some good
• 12:00
  Speaker 8: numbers today. It's fourth quarter pretty much came in line.
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  Speaker 8: Sales up about seven percent, EPs about ten Those are
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  Speaker 8: pretty good numbers for a consumer stable company. They hit
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  Speaker 8: their numbers. Stock is performing well, probably as a result
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  Speaker 8: of that. But there's two other big takeaways I think
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  Speaker 8: beyond that today that's maybe helping investor enthusiasm here. The
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  Speaker 8: second is the financial guidance they provided for the next
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  Speaker 8: three years, or say twenty twenty eight. It's also pretty positive.
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  Speaker 8: They see mid to high single digit revenues, around ten
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  Speaker 8: percent operating income, low double digit EPs growth. Those are
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  Speaker 8: pretty good numbers for be consumer product companies, particularly companies
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  Speaker 8: that deliver like this one. And even though those numbers
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  Speaker 8: are pretty much on line where the street was already at, nevertheless,
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  Speaker 8: I think that should be viewed pretty positively. And the
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  Speaker 8: third is the company said today repeating what they said
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  Speaker 8: in December, they're going to start providing more financial transparency
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  Speaker 8: behind what they call their smoke free business from their
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  Speaker 8: traditional cigarette combustible business. And I think that's going to
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  Speaker 8: help more transparencies. Always welcome, you know, buy investors in
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  Speaker 8: the market. And so I think all three things are
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  Speaker 8: really what's behind today's action.
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  Speaker 5: So talk a little bit about that smoke free product line,
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  Speaker 5: where is the growth the fastest, and how much spending,
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  Speaker 5: how much investment is needed for us to see that
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  Speaker 5: return that investors want.
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  Speaker 8: Yeah, hi, Scarlette. Well, Phillimore's really took a big step
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  Speaker 8: before its peers when jumping into the smoke free opportunity
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  Speaker 8: years ago with what it's calling Icos iQOS that's its
• 13:42
  Speaker 8: flagship family brand, I guess you can call it. It's
• 13:47
  Speaker 8: pretty much sold around the world, pretty much in most
• 13:49
  Speaker 8: of the markets that it sells cigarettes, and it's already
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  Speaker 8: comprised more than half its sales in some pretty big
• 13:56
  Speaker 8: markets Japan, South Korea and some others. So it's really
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  Speaker 8: cool it on well, and basically what it is, it's
• 14:02
  Speaker 8: a device. It's a device that you use to get
• 14:07
  Speaker 8: the facsimile of a cigarette smoking experience, but you use
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  Speaker 8: the little plugs you put in it, so that the
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  Speaker 8: business is really selling the plugs once the device is
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  Speaker 8: in the hands of the consumer. That's doing really well.
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  Speaker 8: That's the biggest piece of that business. The second is
• 14:23
  Speaker 8: it's what it calls it's nicotine pouch business. In the US,
• 14:26
  Speaker 8: people probably know it by ZIN. It's not around plastic camp.
• 14:30
  Speaker 8: People put in their pockets and they can are you
• 14:32
  Speaker 8: discreetly get their nicotine hit that way. It's been really popular,
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  Speaker 8: doing really well. And the third kind of more of
• 14:38
  Speaker 8: a distant business for them, but one they want to
• 14:40
  Speaker 8: be in is their e cigarette business. They call it
• 14:43
  Speaker 8: the closed pod system, sort of like the jewel. Their
• 14:46
  Speaker 8: brand is called it EVE. It's kind of a low end,
• 14:50
  Speaker 8: low low price point, a way for consumers to get
• 14:53
  Speaker 8: into their to get their nicotine fixed. But it wants
• 14:56
  Speaker 8: to be in that business because it wants that brain
• 14:59
  Speaker 8: to be out here as an alternative to smoking.
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  Speaker 2: So just real quick, there is that where the growth
• 15:06
  Speaker 2: is for this company going forward. In the broadly defined
• 15:09
  Speaker 2: smokeless part of the business.
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  Speaker 8: That's really Paul. It's already around forty two percent of
• 15:14
  Speaker 8: our sales. Yeah, believe it or not. Not a lot
• 15:16
  Speaker 8: of people in the US know about it because icos
• 15:18
  Speaker 8: really isn't sold in the US yet. They're waiting for
• 15:21
  Speaker 8: FDA authorization to roll out its Aluma icosystem and then
• 15:26
  Speaker 8: people will really know more about it in the US.
• 15:29
  Speaker 8: But it's yeah, over forty percent of their business. It's
• 15:31
  Speaker 8: over sixteen billion dollars in sales. So that's why they're
• 15:35
  Speaker 8: bringing transparency to that business. It's a big business, you know.
• 15:39
  Speaker 8: I think what they're implying, I think down the road
• 15:42
  Speaker 8: is that maybe they can separate the businesses that is
• 15:46
  Speaker 8: the combustible business from its smoke free because they have
• 15:49
  Speaker 8: different investment characteristics.
• 15:53
  Speaker 2: Stay with us more from Bloomberg Intelligence coming up there
• 15:56
  Speaker 2: for this.
• 15:59
  Speaker 1: You're let's say to the Bloomberg Intelligence podcast. Catch us
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  Speaker 2: Well it is here February time and on Wall Street.
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  Speaker 2: That is Bonus Time, folks, And.
• 16:19
  Speaker 9: You want somebody's attention on roll streets like Bonus bonus exactly.
• 16:22
  Speaker 2: To be honest with you, having worked on the street
• 16:24
  Speaker 2: for thirty years, the bonus discussions at around the water
• 16:27
  Speaker 2: pool will start right after labor Day and you start
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  Speaker 2: talking about what the bonus pool is, and then you
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  Speaker 2: start cornering your manager and you speak from September right
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  Speaker 2: up until the year end, because that's when the bonus
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  Speaker 2: pool kind of gets decided and you say, you put hey,
• 16:42
  Speaker 2: good deals, good trade, you know, all that kind of stuff,
• 16:44
  Speaker 2: and so it starts working right after labor day. That's
• 16:46
  Speaker 2: how the season works. This year is going to be
• 16:48
  Speaker 2: a good year. Goldman, JP Morgan Bankercy bonus pools rise
• 16:51
  Speaker 2: at least ten percent. That's pretty good. Catherine Dherty joins
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  Speaker 2: us financial reporter for Bloomberg News. This is the big
• 16:57
  Speaker 2: take story and not surprisingly it is like one of
• 16:59
  Speaker 2: the most highly read, most read stories on the Bloomberg
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  Speaker 2: terminal today because who is our readership. It's the folks
• 17:04
  Speaker 2: that get paid by Wall Street Global Wall Street. Katherine
• 17:07
  Speaker 2: talked to us about kind of the bonus environment these
• 17:09
  Speaker 2: days for Global Wall Street.
• 17:11
  Speaker 6: Yeah, so, I mean, twenty twenty five ended on a
• 17:13
  Speaker 6: strong note and the year head looks to be the
• 17:17
  Speaker 6: momentum in terms of deals and trading. Both of those
• 17:20
  Speaker 6: things is feeding into that bonus pool that you talk about.
• 17:24
  Speaker 6: So in terms of the trading desks and M and
• 17:28
  Speaker 6: A specifically M and A has been for investment bankers
• 17:32
  Speaker 6: the tepid environment that payouts have not been terrible, but
• 17:37
  Speaker 6: you haven't seen this double digit rise in that part
• 17:41
  Speaker 6: of banking in a few years. Really, twenty twenty one
• 17:45
  Speaker 6: twenty twenty two were like the banner years for investment banking.
• 17:48
  Speaker 6: Now we're starting to see more momentum that bankers are
• 17:52
  Speaker 6: getting paid for the deals that they're putting the time
• 17:55
  Speaker 6: and energy into, and for trading. Volatility has really than
• 18:00
  Speaker 6: up revenue across the big banks. They're fulfilling more client
• 18:05
  Speaker 6: orders and because of that, the trading desks are getting
• 18:09
  Speaker 6: paid for it.
• 18:10
  Speaker 9: I need numbers like, give me an average and then
• 18:13
  Speaker 9: for a rain maker like Paul would be.
• 18:16
  Speaker 6: So average ten percent, and we've been reporting for specifically JP, Morgan,
• 18:21
  Speaker 6: Goldman Bank of America. Now within those banks there's some variation.
• 18:26
  Speaker 6: We were trying to find kind of the general average
• 18:30
  Speaker 6: and for the rain makers to answer your question, some
• 18:33
  Speaker 6: of those are going up to the twenty to I
• 18:35
  Speaker 6: had heard some rumors of thirty percent for the like
• 18:40
  Speaker 6: real give me like a dollar figure though, So I
• 18:44
  Speaker 6: mean these bonuses, it really varies by bank. But if
• 18:48
  Speaker 6: you think about the base salary, it's the bonus on
• 18:52
  Speaker 6: top of your base salary that usually is Is this
• 18:56
  Speaker 6: the sweeter part of payout. It's going to depend on
• 18:59
  Speaker 6: what's age of career the banker is in. If they're
• 19:03
  Speaker 6: further along, it can stretch into the millions of dollars,
• 19:06
  Speaker 6: and it's the bonus that could be the millions part
• 19:10
  Speaker 6: and not necessarily your base salary. So again that's the
• 19:14
  Speaker 6: performance based how did your year end up? And then
• 19:17
  Speaker 6: your salary is just the thing that's on the bottom
• 19:20
  Speaker 6: of it.
• 19:20
  Speaker 2: What what has changed since my day was my day,
• 19:23
  Speaker 2: my bonus was ninety to ninety five percent of my
• 19:27
  Speaker 2: year InCom my total com is my bonus. So your
• 19:30
  Speaker 2: salary was like five ten percent of your exactly you
• 19:32
  Speaker 2: take it. Now that's changed, it's a higher percentage.
• 19:34
  Speaker 9: Now your salary was your beer money exactly exactly right.
• 19:39
  Speaker 2: But you try to live on your salary and you
• 19:40
  Speaker 2: save your bonus, that's the that's what or if you're
• 19:43
  Speaker 2: other way, you just blow your bonus both four kids.
• 19:45
  Speaker 2: I was in the save mode, but as that changes
• 19:48
  Speaker 2: are higher base now these days, maybe a lower percent.
• 19:50
  Speaker 6: Do you think that I mean that percentage that you
• 19:53
  Speaker 6: just shared. I think the percentages yes, have have grown
• 19:58
  Speaker 6: where bonuses are not nice of your pay. That being said,
• 20:03
  Speaker 6: the shift is still towards bonus over salary for many
• 20:08
  Speaker 6: of these firms. And again that is why there's the
• 20:12
  Speaker 6: incentive to work hard. That phrase of eat what you kill.
• 20:17
  Speaker 9: Yeah, is the bonus also a retention sort of thing
• 20:21
  Speaker 9: that retain your talent. You know, you don't want to
• 20:23
  Speaker 9: lose this guy to or woman to some other firm.
• 20:25
  Speaker 6: So that's a huge That's like the fine line that
• 20:29
  Speaker 6: the banks need to walk is you want to pay
• 20:32
  Speaker 6: your best talent. But they're also under a lot of
• 20:36
  Speaker 6: pressure to keep their expenses in check. When these are
• 20:38
  Speaker 6: public companies, they're reporting to their analysts and the investor
• 20:42
  Speaker 6: community and saying, hey, this is how much money that
• 20:44
  Speaker 6: we're making. The profit that the banks made in twenty
• 20:47
  Speaker 6: twenty five was the strongest that we have seen in
• 20:50
  Speaker 6: a while, so presumably they should be able to pay
• 20:53
  Speaker 6: out their people for it, but they don't want to
• 20:56
  Speaker 6: pay out so much that then their expense line is
• 21:00
  Speaker 6: going to be under scrutiny and they're going to be
• 21:01
  Speaker 6: held to a higher standard in future quarters where they're
• 21:05
  Speaker 6: going to start answering questions like, you know, why is
• 21:09
  Speaker 6: the expenses much higher than you projected or you have
• 21:12
  Speaker 6: talked about in previous quarters.
• 21:14
  Speaker 9: Is going to develop an AI model to come up yes,
• 21:16
  Speaker 9: with the calculation for.
• 21:17
  Speaker 6: Most I'm sure that this is something that yes, they've
• 21:20
  Speaker 6: already implemented, right the.
• 21:21
  Speaker 2: Junior bankers listening out there and watching. Here's the strategy.
• 21:25
  Speaker 2: You go in with your deal sheet. This is the
• 21:26
  Speaker 2: fees that generated this year, you got to pay me
• 21:29
  Speaker 2: as more important than that is going with the deal
• 21:31
  Speaker 2: sheet for next year. These are my anticipated fees that
• 21:34
  Speaker 2: I think I'm going to bring in. And you don't
• 21:37
  Speaker 2: want to lose me, you don't want to make me
• 21:39
  Speaker 2: unhappy because this I think I can bring in. It's
• 21:41
  Speaker 2: all about the year ahead. And that's yeah, so real quick,
• 21:45
  Speaker 2: thirty seconds. European banks don't pay as much as the
• 21:48
  Speaker 2: US banks, right.
• 21:49
  Speaker 6: Not typically, but that's just because when you think about
• 21:52
  Speaker 6: the US, you have the New York market, so you're
• 21:55
  Speaker 6: going to see higher salaries and the US banks I
• 22:00
  Speaker 6: think are on a stronger foot right now in terms
• 22:02
  Speaker 6: of the profit that they're pulling in. So those are
• 22:04
  Speaker 6: the kind of the things you need to think about.
• 22:07
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