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Superyachts: The Key to the Global Economy · Trumponomics

• 0:04
  Speaker 1: Hello, and welcome to Stephanomics, the podcast that brings the
• 0:07
  Speaker 1: global economy to you. It's Thanksgiving this week, so of
• 0:14
  Speaker 1: course we're talking about the current level of consumption in
• 0:17
  Speaker 1: the US and whether it can last with trade wars
• 0:20
  Speaker 1: getting in the way of investment and exports. The US
• 0:23
  Speaker 1: consumer has been single handedly keeping the US recovery on
• 0:27
  Speaker 1: the road for much of In fact, without consumer spending,
• 0:32
  Speaker 1: the economy would have shrunk in each of the past
• 0:34
  Speaker 1: two quarters, and there are some concerns lately that even
• 0:38
  Speaker 1: consumers are starting to wobble. In a few minutes, I'm
• 0:42
  Speaker 1: going to talk about some new tools we have for
• 0:44
  Speaker 1: monitoring US consumers, especially the retail side of the economy,
• 0:49
  Speaker 1: with our chief US economist and Carl rick O Donna.
• 0:52
  Speaker 1: I'm also going to give you just a final taste
• 0:54
  Speaker 1: of the Bloomberg New Economy Forum in Beijing last week,
• 0:57
  Speaker 1: a conversation about Brexit and the future or of Europe
• 1:00
  Speaker 1: with Germany's Deputy Finance Minister. Your cookies, but first, our
• 1:06
  Speaker 1: Atlanta based real economy reporter Mike Sasso has been testing
• 1:10
  Speaker 1: the waters in a market that turns out to be
• 1:13
  Speaker 1: a surprisingly good barometer of the U s consumer it's
• 1:16
  Speaker 1: not punk kin pies or turkey, but luxury yachts. Let
• 1:25
  Speaker 1: me get this guy on a took. If you guys
• 1:27
  Speaker 1: don't mind, couldn't I just beat one minute and a
• 1:33
  Speaker 1: Stevie Gay In South Florida, I meet Tom Convoy. He
• 1:37
  Speaker 1: sells not just yachts, but super yachts, the biggest, flashiest
• 1:41
  Speaker 1: votes and individual can buy. And this day he's giving
• 1:45
  Speaker 1: private tours of vida of vessel that's long. A few
• 1:51
  Speaker 1: Mexican businessmen shuffle in, Hey, how are you good man?
• 1:54
  Speaker 1: How are you doing? Zeal Everything very well? Yeah, yeah.
• 2:04
  Speaker 1: Boy's yacht is the kind of super rich plaything that
• 2:07
  Speaker 1: few people will ever come close to it, and to
• 2:09
  Speaker 1: preserve its pristine condition, even the wealthy guests climbing aboard
• 2:14
  Speaker 1: were asked to leave their shoes and cocktails on the dock.
• 2:20
  Speaker 1: The boat is built by a Dutch company called Heaths
• 2:22
  Speaker 1: and Yachts. It comes with a master stateroom in five
• 2:25
  Speaker 1: guest staterooms, a full gymnasium and quarters for thirteen crew members.
• 2:31
  Speaker 1: Pursing it will set you back a cool fifty million dollars.
• 2:35
  Speaker 1: Convoy took a break from the tours to speak about
• 2:38
  Speaker 1: the yacht industry during the Fort Lauderdale International Boat Show,
• 2:42
  Speaker 1: one of the biggest marine expos in the world. As
• 2:45
  Speaker 1: it turns out, even people with money to burn are
• 2:48
  Speaker 1: increasingly nervous about burning it. Chalk it up to the
• 2:52
  Speaker 1: USS trade war with China and ugly Brexit in Germany
• 2:56
  Speaker 1: teetering on recession. He says, this is a not this
• 3:00
  Speaker 1: is a confidence by can you buy something like this?
• 3:04
  Speaker 1: Your confidence has to be your confidence. And even when
• 3:07
  Speaker 1: you have a great deal of money, you don't just
• 3:10
  Speaker 1: go because when you give you that real good confidence
• 3:13
  Speaker 1: that there's there's good things common, you know are not
• 3:17
  Speaker 1: good things going, but things are gonna be going. Boating
• 3:24
  Speaker 1: yacht sales are seen as a good barometer of the
• 3:26
  Speaker 1: economy because they're highly discretionary, Plus buyers can easily put
• 3:31
  Speaker 1: things on hold when conditions deteriorate. That's why the industry
• 3:35
  Speaker 1: is nervous about a recent decline in boat purchases this
• 3:38
  Speaker 1: year from small skiffs three hundred foot vessels. And it's
• 3:43
  Speaker 1: not just about the ridge The U S boating industry
• 3:46
  Speaker 1: employees or help sustain the jobs of more than six
• 3:50
  Speaker 1: hundred thousand Americans. No one can say for sure if
• 3:54
  Speaker 1: the sales slowdown is temporary or something more worrying, like
• 3:58
  Speaker 1: a hint that the US economy is tilting towards recession.
• 4:03
  Speaker 1: But with consumer spending accounting for seventy of the U.
• 4:06
  Speaker 1: S economy, there's a lot writing on the answer. Chuck
• 4:11
  Speaker 1: Cashman has a great vantage point into the U. S.
• 4:14
  Speaker 1: Boating industry. He's the chief revenue officer of Marine Max Incorporated,
• 4:19
  Speaker 1: America's biggest chain of boat dealerships. Nineteen is the shoppiest
• 4:24
  Speaker 1: year he's ever seen. I think we're in a great economy,
• 4:27
  Speaker 1: and historically great economy. I do understand we're closer to
• 4:31
  Speaker 1: the end of a good cycle than we are in
• 4:33
  Speaker 1: the beginning. Right, It's uh, it will go on forever. However,
• 4:41
  Speaker 1: it's the growth and clock is right twice a day.
• 4:44
  Speaker 1: If everybody is just gonna say we're heading for a downturn,
• 4:47
  Speaker 1: yeah we are. But when a point right, I don't
• 4:50
  Speaker 1: think this weekend, So you know that's how I'll attack
• 4:53
  Speaker 1: this weekend. Yeah. Overall, boat sails and should hit their
• 5:07
  Speaker 1: second highest level in the past dozen years, according to
• 5:10
  Speaker 1: industry data, and there's no sign of any slowdown. In Florida.
• 5:14
  Speaker 1: In early November, organizers of the boat show created an
• 5:18
  Speaker 1: exclusive super yacht village this year, where the wealthy arrived
• 5:22
  Speaker 1: by water taxi to tour ships as long as three feet.
• 5:26
  Speaker 1: Local hotels were sold out all around the show's vast
• 5:30
  Speaker 1: marina complex, and parking spaces a half mile away costs
• 5:34
  Speaker 1: forty dollars. Lindsay Pieza is an economist at Steple Financial.
• 5:40
  Speaker 1: She said consumers are behaving oddly this year. Given the
• 5:43
  Speaker 1: strong economy, she would have expected people to keep spending
• 5:47
  Speaker 1: more each month. Instead, they're buying some items only to
• 5:51
  Speaker 1: cut back on others. The consumer is still out there.
• 5:54
  Speaker 1: May be buying that big screen TV one month, but
• 5:57
  Speaker 1: in doing so, he or she is foregoing uh that
• 6:01
  Speaker 1: other purchase, be that a new winter code or going
• 6:04
  Speaker 1: out to eat with the family. So we're seeing this
• 6:06
  Speaker 1: dramatic shift month to month, and that doesn't necessarily insinuate
• 6:11
  Speaker 1: a very strong consumer going forward. Bob Dennison is a
• 6:16
  Speaker 1: luxury yacht broker from Fort Waterdale. You remain somewhat upbeat.
• 6:21
  Speaker 1: Most people will tell you that they are sort of
• 6:24
  Speaker 1: cautiously optimistic. Orders are being made on new boats, used
• 6:27
  Speaker 1: boats are buying. Weather is nice, but we're a somewhat
• 6:31
  Speaker 1: smart bunch, and we know that. You know, there are
• 6:34
  Speaker 1: economic cycles that come in and out, and this market
• 6:38
  Speaker 1: specifically is usually hit harder than most when there is
• 6:43
  Speaker 1: an economic downturn because the things that we sell are
• 6:47
  Speaker 1: things that are truly um things you buy for no
• 6:54
  Speaker 1: you know, utilitarian reason you own a yacht unless you're
• 6:57
  Speaker 1: a fisherman or your craft. You know, the the only
• 6:59
  Speaker 1: reason that you're buying from these yacht, these white yachts
• 7:02
  Speaker 1: at the boat show is just for fun. But maybe
• 7:06
  Speaker 1: people aren't going to be having as much fun anymore.
• 7:10
  Speaker 1: The US will hold its presidential election next year, and
• 7:13
  Speaker 1: to the leading candidates, Bernie Sanders and Elizabeth Warren are
• 7:17
  Speaker 1: calling for a new tax on the wealthiest Americans. The
• 7:21
  Speaker 1: voting industry fears that could scare yat buyers and persuade
• 7:25
  Speaker 1: them to hold off on purchasing. A few years ago,
• 7:28
  Speaker 1: Dennison studied boat buying trends. He found that sales fall
• 7:32
  Speaker 1: off in the months before presidential election, although they pick
• 7:36
  Speaker 1: up again after it's over. That could make boat sales
• 7:39
  Speaker 1: a bit cloudier as an economic barometer these days, which
• 7:43
  Speaker 1: means we may have to look at other items to
• 7:45
  Speaker 1: gauge whether there's going to be a recession. Economists also
• 7:50
  Speaker 1: watch sales of movie tickets, big screen TVs, and even
• 7:53
  Speaker 1: cosmetic surgeries to see if the economy is turning. There
• 7:58
  Speaker 1: are also market indicators with coable reputations, like the difference
• 8:02
  Speaker 1: between yields on different maturities of treasury bonds. It's fair
• 8:06
  Speaker 1: to say that the voting industry is increasingly anxious. However,
• 8:10
  Speaker 1: Tom Conboy, the super yacht sales mean we heard from
• 8:13
  Speaker 1: at the beginning, doesn't like the look of the election
• 8:16
  Speaker 1: season so far from here. I think of this politicals
• 8:19
  Speaker 1: thing just keeps going, and there's you know, and there's
• 8:21
  Speaker 1: muddy trench that it's and I did it's not going
• 8:24
  Speaker 1: to help us for Bloomberg News and Michael Sasso. So
• 8:36
  Speaker 1: that's the view of consumers from the ground, or maybe
• 8:40
  Speaker 1: in this case the marina. I'm now joined by Carl
• 8:44
  Speaker 1: rick O Donna, our US chief economist. Carl, thanks for
• 8:48
  Speaker 1: being here, and you have given us some interesting new
• 8:52
  Speaker 1: research in the last week or so looking at this
• 8:55
  Speaker 1: crucial question of the strength of the US consumer going
• 9:00
  Speaker 1: into the holiday season. Tell us a bit about what
• 9:02
  Speaker 1: you found. Well, there's a broader question over the the
• 9:07
  Speaker 1: the ability for consumers to really continue propping up economic growth.
• 9:11
  Speaker 1: But what we did here I would look a little
• 9:13
  Speaker 1: bit more narrowly at the holiday shopping season UH and
• 9:17
  Speaker 1: identify the categories that are really relevant to that end
• 9:20
  Speaker 1: of season surge in sales. And of course that starts
• 9:24
  Speaker 1: with the Black Friday holiday in the US, and it's
• 9:27
  Speaker 1: called Black Friday because that's a historically the day of
• 9:31
  Speaker 1: the year where retailers actually go from being in the
• 9:34
  Speaker 1: red to being in the black given that pick up
• 9:37
  Speaker 1: an activity, and there have been I'm actually I'm going
• 9:40
  Speaker 1: to be in New York on on Black Friday, and
• 9:42
  Speaker 1: I'm going to do everything I can to avoid any
• 9:44
  Speaker 1: large shops. But there has been some worry in the
• 9:48
  Speaker 1: last even just in the last few weeks about whether
• 9:51
  Speaker 1: consumers are starting to falter, whether we should worry about
• 9:56
  Speaker 1: them carrying the US economy on their shoulders into twent twenty.
• 10:00
  Speaker 1: What do you think about that. If consumers are are buckling,
• 10:04
  Speaker 1: we've got a real problem on our hands. If we
• 10:06
  Speaker 1: look at GDP growth excluding consumers. UH. In fact, the
• 10:10
  Speaker 1: economy is bending contraction for the last two quarters and
• 10:14
  Speaker 1: would continue to contract into year end. So kind of
• 10:16
  Speaker 1: the ex consumer economy really we could say, is in
• 10:20
  Speaker 1: a recession. Now consumers are sent the picture, so it
• 10:23
  Speaker 1: kind of doesn't make sense to take consumers out of
• 10:26
  Speaker 1: that out of that equation, but that gives you a
• 10:28
  Speaker 1: context of what's really propping up growth at the moment.
• 10:31
  Speaker 1: So we really have to keep a very watchful eye
• 10:34
  Speaker 1: on consumers, not just those retailers that are looking to
• 10:36
  Speaker 1: go into the black, but also the broader retrajectory of
• 10:39
  Speaker 1: the economy. And when we look at that trend, UH,
• 10:43
  Speaker 1: there's been reason for concern, but I'll say not panic
• 10:47
  Speaker 1: in some of the latest data. So for example, if
• 10:50
  Speaker 1: we look at all of these inputs that we run
• 10:53
  Speaker 1: into this holiday shopping model, things like demand for motor
• 10:57
  Speaker 1: vehicles or overall spending momentum in the unomy, consumer attitudes,
• 11:02
  Speaker 1: the household savings rate UH, and most importantly the household
• 11:05
  Speaker 1: income trend, the wage and salary trend, all of those
• 11:08
  Speaker 1: have been cooling over the last couple of months, if
• 11:12
  Speaker 1: not quarters, and tell us that we are on a
• 11:14
  Speaker 1: weaker trajectory. I know, people listening when we have these conversations,
• 11:18
  Speaker 1: people always say, what about internet shopping? Are these of
• 11:21
  Speaker 1: these old data that the traditional data, surely it's not
• 11:24
  Speaker 1: capturing how much of us are now buying online? Do
• 11:27
  Speaker 1: you do you feel confident that we're capturing that side
• 11:29
  Speaker 1: of the economy. Now, there have been problems historically that
• 11:32
  Speaker 1: the Internet sales were not being captured is fully in
• 11:36
  Speaker 1: the data series. But what we're using for this particular
• 11:39
  Speaker 1: study is the retail sales data from the Census Bureau UH,
• 11:43
  Speaker 1: and that does capture Internet sales. And we can see
• 11:46
  Speaker 1: that category growing at a very robust pace, about fifteen
• 11:50
  Speaker 1: percent in year in year terms. So what in fact
• 11:52
  Speaker 1: it is slowing? I can remember ten years ago looking
• 11:54
  Speaker 1: at this data and it was growing at about a pace.
• 11:57
  Speaker 1: But that that's a micro economic story within the broader
• 12:01
  Speaker 1: data set. So we are capturing uh, Internet retail in
• 12:05
  Speaker 1: this data. What we don't capture here is the service
• 12:09
  Speaker 1: side of the economy. Now, when we talk about consumer
• 12:11
  Speaker 1: spending more broadly, absolutely services are included. But as we
• 12:15
  Speaker 1: look at retail sales data here, and the big story is,
• 12:18
  Speaker 1: you know, millennials want to buy experiences and not not
• 12:21
  Speaker 1: items that they have to store in their very tiny apartments,
• 12:24
  Speaker 1: and so those experiential purchases, if you're gifting someone a
• 12:29
  Speaker 1: vacation or a massage or or some kind of service
• 12:33
  Speaker 1: at at the holiday season. Now, that's not going to
• 12:36
  Speaker 1: show up in these metrics. Yeah, and as we know,
• 12:38
  Speaker 1: a lot of them, they do not get used, which
• 12:41
  Speaker 1: is a nice little earner for the people who give
• 12:43
  Speaker 1: out the vouchers. You know, we've just been hearing about
• 12:47
  Speaker 1: luxury yacht industry and how that's being affected by the
• 12:51
  Speaker 1: mood among consumers. It makes you think a little bit about, uh,
• 12:56
  Speaker 1: one of the big political issues that we're going to
• 12:59
  Speaker 1: hear a lot talk about a lot as we go
• 13:01
  Speaker 1: into the US presidential campaign, the way that money has
• 13:04
  Speaker 1: gone into the pockets of the very, very wealthy over
• 13:07
  Speaker 1: the course of the last um ten or fifteen years particularly,
• 13:12
  Speaker 1: do you see I mean, we would tend to think
• 13:15
  Speaker 1: that if wage growth, for seeing wage growth at the
• 13:19
  Speaker 1: bottom end of the wage spectrum, that's going to be
• 13:23
  Speaker 1: better for overall consumption than just having a lot of
• 13:27
  Speaker 1: money going into the bank accounts of the super rich
• 13:29
  Speaker 1: because they're not going to spend at all. Is that
• 13:31
  Speaker 1: is that something you see? Because I know the pattern
• 13:33
  Speaker 1: of wage growth has been you know, has been a
• 13:35
  Speaker 1: bit better for the lower wage end of the spectrum
• 13:39
  Speaker 1: in the last few years. Sure, as you look at
• 13:42
  Speaker 1: the composition of spending by income quartile, for instance, we
• 13:47
  Speaker 1: definitely are seeing that this is now looking like a
• 13:50
  Speaker 1: more mature economic cycle, to the extent that initially in
• 13:55
  Speaker 1: economic cycles, you don't tend to have a very weak
• 13:59
  Speaker 1: econ conditions for the upper income demographics. The lawyers and
• 14:03
  Speaker 1: doctors tend to not be unemployed when the economy is
• 14:06
  Speaker 1: in recession. UH. And then later on in the cycle
• 14:09
  Speaker 1: we see the unemployment rate for those with uh let's say,
• 14:13
  Speaker 1: less education that tend to be in lower income demographics. UH,
• 14:17
  Speaker 1: that tends to improve. And that's really what we're seeing
• 14:20
  Speaker 1: in the data lately. UH. And to answer your question, UH,
• 14:23
  Speaker 1: those demographic groups tend to have a much lower savings rate,
• 14:27
  Speaker 1: which means that every dollar earned tends to get transferred
• 14:31
  Speaker 1: into consumption. And so there is a stronger macroeconomic consequence
• 14:36
  Speaker 1: from improvement in in that end of the income spectrum
• 14:39
  Speaker 1: compared to the top which tends to have a very
• 14:41
  Speaker 1: high savings rate. UH. And so those dollars earned then
• 14:44
  Speaker 1: get reinvested into financial assets typically, and that is going
• 14:49
  Speaker 1: to be one of the things that I'm sure we'll
• 14:50
  Speaker 1: get talked about in the presidential election. Is certainly something
• 14:54
  Speaker 1: that the likes of the International Monetary Fund has pointed
• 14:57
  Speaker 1: to and saying that income income inequality, having the gains
• 15:02
  Speaker 1: from growth not evenly spread can actually hurt growth itself.
• 15:06
  Speaker 1: Plenty of stuff to talk about, Plenty of stuff that
• 15:08
  Speaker 1: we want you, Carl to be watching very closely going
• 15:10
  Speaker 1: into twenty But thanks very much and happy Thanksgiving. Thank you.
• 15:21
  Speaker 1: So I did promise you a final taste of the
• 15:23
  Speaker 1: Bloomberg New Economy Forum last week in Beijing, and here
• 15:27
  Speaker 1: we have it. It's part of a debate about Brexit
• 15:30
  Speaker 1: and the future of Europe. Here's my conversation with your cookies,
• 15:34
  Speaker 1: Germany's Deputy Finance minister, your cookies. When people often in
• 15:46
  Speaker 1: the UK in this debate, people have pointed to Germany
• 15:50
  Speaker 1: as the country that would push hard for a good
• 15:55
  Speaker 1: deal for Britain because German companies would be so affective. Um,
• 16:01
  Speaker 1: it feels a bit like Germany, and indeed other parts
• 16:03
  Speaker 1: of Europe have just now just putting their hands up
• 16:07
  Speaker 1: saying let's just get this done. We're not we just
• 16:12
  Speaker 1: want to get past Brexit now. Whatever it takes. Is
• 16:15
  Speaker 1: that is that the German I want to get onto
• 16:17
  Speaker 1: the impact of the broader impact on Europe, But what
• 16:19
  Speaker 1: about the German starts now on Brexit. Well, okay, so
• 16:22
  Speaker 1: first of all, I think you're half sentence because is
• 16:26
  Speaker 1: not complete when you say because the German companies are
• 16:29
  Speaker 1: so affected. That's true, the German companies are affected. But
• 16:33
  Speaker 1: I think the much bigger reason why Germany has tried
• 16:36
  Speaker 1: so hard to UM to make the best of of
• 16:40
  Speaker 1: Brexit is because of the very deep rooted friendship between
• 16:44
  Speaker 1: our countries and the very close cooperation that we've had
• 16:48
  Speaker 1: over decades and the work that we've done together in
• 16:52
  Speaker 1: the in the European Union. So so we're losing a
• 16:56
  Speaker 1: very dear friend and UH and partners. So that's that's
• 16:59
  Speaker 1: really the biggest UM reason why we try to be
• 17:02
  Speaker 1: as constructive as we can in this And I would
• 17:04
  Speaker 1: say that even the second round of negotiation, the German
• 17:08
  Speaker 1: government has taken a very constructive stance in terms of
• 17:12
  Speaker 1: trying to build bridges and trying to facilitate things the
• 17:16
  Speaker 1: best we can UM and the other aspect. I think
• 17:18
  Speaker 1: that's also very important for them For the question of UM.
• 17:23
  Speaker 1: I mean, we don't have a choice, but to except
• 17:25
  Speaker 1: accept the Brexit decision, but we do have a choice
• 17:29
  Speaker 1: to try to make the response of the European Union
• 17:32
  Speaker 1: in terms of the transitional agreements UM, in the financial
• 17:35
  Speaker 1: markets UM, in all of the rules and regulations that
• 17:38
  Speaker 1: we have as UM as reasonable as possible UM, you know,
• 17:42
  Speaker 1: like equivalence decisions with respect to UM the financial markets
• 17:46
  Speaker 1: I think are extremely strategically important. And the German government
• 17:50
  Speaker 1: has been very very active in UM making sure and
• 17:55
  Speaker 1: UM and UM and taking a position in the European
• 17:57
  Speaker 1: Union UM of a constructive stance within the Brexit context,
• 18:01
  Speaker 1: and if we think about the longer term impact for
• 18:04
  Speaker 1: Europe UM. There had been an argument that said, once
• 18:08
  Speaker 1: you lose Britain, it's all very sad, but you're also
• 18:13
  Speaker 1: liberated to have some of the closer integration that Britain
• 18:17
  Speaker 1: had resisted from inside the European Union. UM. Do you
• 18:22
  Speaker 1: think there is that potential that you would we would
• 18:24
  Speaker 1: think of this as a as actually giving a new
• 18:27
  Speaker 1: lease on life to us to a closer integration or
• 18:30
  Speaker 1: will we actually say no, This was when a hole
• 18:32
  Speaker 1: got blown out of the U and it was the
• 18:34
  Speaker 1: beginning of a further disintegration. So, first of all, I
• 18:38
  Speaker 1: don't quite agree with the assessment because you know, if
• 18:42
  Speaker 1: the assessment were true that it was Britain that held
• 18:45
  Speaker 1: back the integration of the European Union, then the institutions
• 18:49
  Speaker 1: of the Eurozone should have been much stronger and made
• 18:53
  Speaker 1: much more progress because the United Kingdom never played at
• 18:57
  Speaker 1: all in that, because it's not in right. But you
• 19:00
  Speaker 1: look at the lack of progress in the banking Union,
• 19:02
  Speaker 1: which is only the the e U nineteen either the
• 19:05
  Speaker 1: Eurozone countries. It's not like we've made a huge amount
• 19:08
  Speaker 1: more progress in that than in the other agenditis. So
• 19:11
  Speaker 1: I don't think it's really an issue that that Britain
• 19:14
  Speaker 1: held us back. UM. What I do think what is
• 19:18
  Speaker 1: what people are realizing and why there has now been
• 19:20
  Speaker 1: a new impetus to both the Banking Union and the
• 19:22
  Speaker 1: Capital Markets Union, is of course that everyone now realizes
• 19:26
  Speaker 1: that once the direct access and integration with London UM
• 19:31
  Speaker 1: may change. We hope it doesn't change radically, but it
• 19:35
  Speaker 1: will change. Of course in some aspects. There has to
• 19:38
  Speaker 1: be a response from the European Union and the if
• 19:41
  Speaker 1: we want to assure the funding and financing of our
• 19:45
  Speaker 1: real economy to the extent that we've had so far, um,
• 19:49
  Speaker 1: we have to do our homework on banking union and
• 19:51
  Speaker 1: capital markets union. I mean, any large global corporate in
• 19:55
  Speaker 1: Germany that has sought financing for any large transaction at
• 19:59
  Speaker 1: the global scale all has been doing it through London
• 20:01
  Speaker 1: in the last twenty years, right, thirty years, and that
• 20:05
  Speaker 1: is now going to be more difficult. So if you're
• 20:08
  Speaker 1: a dozen't respond and strengthen its banking union capital markets union,
• 20:13
  Speaker 1: it will be to the detriment of Europe. So that's
• 20:15
  Speaker 1: that made maybe the the sort of healthy thing that
• 20:19
  Speaker 1: we have to get our act together. Thanks for listening
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  Speaker 1: story in this episode was reported and written by Michael
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  Speaker 1: Sasso was produced by Magnus Hendricks and edited by Scott Landman,
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