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Markets, Fintech, And ETFs (Podcast) · Bloomberg Intelligence

0:00
Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
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Speaker 1: my co host Matt Miller. Every business day, we bring
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Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
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Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
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Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
0:18
Speaker 1: at Bloomberg dot com slash podcast. I want to bring
0:21
Speaker 1: in Ted Oakley right now, founder and managing partner at
0:25
Speaker 1: Oxbow Advisors. UM and I it's Ted. Is great to
0:29
Speaker 1: get a chance to talk with you after we've got
0:31
Speaker 1: some kind of confusing consumer confidence numbers and UM, you know,
0:36
Speaker 1: we're worried about inflation, we're worried about growth. It's just
0:41
Speaker 1: a difficult time right now to make a call on
0:43
Speaker 1: the markets. What do you think, Well, I would have
0:46
Speaker 1: to say none. It's hard for us. I mean what
0:49
Speaker 1: we're seeing is that this latest round of sort of
0:53
Speaker 1: a snap back, and in terms of what's going on
0:55
Speaker 1: in the consumer, I think they're borrowing all the money
0:58
Speaker 1: number one, but number two to all the snapback, people
1:01
Speaker 1: can't wait to find the bottom and it just looks
1:03
Speaker 1: like we have more to go. And you have to
1:06
Speaker 1: think about that relative to the numbers that have come out,
1:09
Speaker 1: and uh in May, obviously with oil and that sort
1:12
Speaker 1: of thing, the Fed's going to keep on fighting. So
1:16
Speaker 1: we can't see the upside here, I'd have to say
1:18
Speaker 1: we're looking for more downside? How much more downside? Ted?
1:22
Speaker 1: And kind of I think what a lot of folks
1:24
Speaker 1: are saying is, you know, where do we find a bottom?
1:28
Speaker 1: What is the market pricing in now? Is the market
1:30
Speaker 1: pricing and stagflation? Is the pricing in a recession? Or
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Speaker 1: are we not even there yet? How do you think
1:36
Speaker 1: about kind of identifying you know, not the bottom, but
1:40
Speaker 1: maybe you know kind of the beginnings of a bottom. Well,
1:44
Speaker 1: the biggest thing is I think it's pricing in profits.
1:47
Speaker 1: I mean, if you look at the market, it's always
1:49
Speaker 1: pricing in how profitable things are going to be for
1:52
Speaker 1: companies that are in the market. And if you look
1:55
Speaker 1: at all those companies Brian Large, they haven't made any
1:58
Speaker 1: any more money in the last six months, and it
2:01
Speaker 1: looks like in order to stay up with things are
2:03
Speaker 1: going to have to raise prices where it hurts the
2:05
Speaker 1: sales and the margin is going to break down again.
2:08
Speaker 1: And so if you can't see the earnings picture, for
2:11
Speaker 1: the next six months. To me, that's what the market does,
2:13
Speaker 1: discounting or we'll discount more. So, um, what do you
2:18
Speaker 1: do if um? Well, first off, if you're not someone
2:23
Speaker 1: living on a fixed income, if you're still trying to
2:26
Speaker 1: build your nuts so to speak, Uh, what's an investor
2:30
Speaker 1: to do right now? You know, we always break that
2:34
Speaker 1: down between younger people that are building and someone else
2:39
Speaker 1: who has already achieved the wealth level and and they're
2:42
Speaker 1: going towards you know, the end of life. But on
2:45
Speaker 1: the younger side, we you know, you think normally they
2:48
Speaker 1: could just keep on uh dollar cost averaging because they
2:51
Speaker 1: put a small end every month and they're young. I
2:53
Speaker 1: mean it's going to build up over time, You're Okay,
2:56
Speaker 1: for someone that sold a company or they have significant
3:00
Speaker 1: wealth at say fifty five or sixty, they need to
3:04
Speaker 1: start thinking about preservation as opposed to trying to beat
3:08
Speaker 1: the SMP right here, because probably preservation will beat the
3:12
Speaker 1: SMP this year. And I think that's where people probably
3:15
Speaker 1: there's there's two categories of what we recommend right in there,
3:20
Speaker 1: and they are well listening for the young people. Okay,
3:24
Speaker 1: if I'm a young person, I don't how much money
3:26
Speaker 1: maybe putting in I think we just decided we don't
3:28
Speaker 1: care about young people. That's right. What what if what
3:30
Speaker 1: if you sold your company? What if you just sold
3:32
Speaker 1: a house. What if you're you know, you've made your
3:36
Speaker 1: money on Wall Street with an amazing three decade career,
3:40
Speaker 1: and now you just want to keep the money. Well,
3:43
Speaker 1: most of our workers with people that have sold a company,
3:46
Speaker 1: that's the majority of our assets. And so the new
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Speaker 1: money we've had coming in the last two or three
3:51
Speaker 1: months went something like this about it or seventy five
3:57
Speaker 1: similar between that number is really i right now, it's
4:01
Speaker 1: in it's in short treasuries, things along that line. We're
4:05
Speaker 1: not trying to you know, we're not trying to bet
4:08
Speaker 1: the farm and where rates go right here. We're keeping
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Speaker 1: that fairly short, a little bit long. But then on
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Speaker 1: the stock side, where we might normally have for somebody
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Speaker 1: like that, uh, maybe a third of stock, that's only
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Speaker 1: about ten percent for us right now. And then we
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Speaker 1: have another strategic called high income, and that one normally
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Speaker 1: that would be again about thirty five percent. It's probably
4:31
Speaker 1: only about fifteen to twenty right now. So you can
4:34
Speaker 1: see we're skewed towards safety. We can make a change
4:38
Speaker 1: really quickly. But that's where we are right now, he said,
4:41
Speaker 1: I know, you know as a proud texting um people
4:44
Speaker 1: in Texas, I'm guessing just have a natural call on
4:47
Speaker 1: oil one way or another. I'm looking at w T
4:50
Speaker 1: I coude oil here, just one dollars a barrel. What
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Speaker 1: are your good friends around the state of Texas saying
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Speaker 1: about oil? Well, I have to tell you that I've
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Speaker 1: been obviously Texas most of my all my life actually.
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Speaker 1: But the thing about it, most people in the one
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Speaker 1: guest business are very good when it's very poor, I
5:08
Speaker 1: should say. When it comes to sentiment, they are all
5:12
Speaker 1: they're always bullish at the high and you can't give it.
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Speaker 1: You know, you can't get them to even take giveaway
5:17
Speaker 1: oil when it's like eight or nine bucks. But you know,
5:20
Speaker 1: so they're all in that mode right now because their
5:22
Speaker 1: checks are higher every month, checks a little higher, you
5:25
Speaker 1: know when from production, and so you can't get them there.
5:27
Speaker 1: The big point is what we're watching is the end
5:30
Speaker 1: the march. You know, you're up around one and this
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Speaker 1: this miss will be a test here. If you can't
5:37
Speaker 1: get much higher, it means that you're I don't know,
5:40
Speaker 1: if you sell the gas line numbers, but the sales
5:44
Speaker 1: of gasolene, you know, the last two weeks have really,
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Speaker 1: even in the hot season like this, are starting to
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Speaker 1: really show weakness relative to where they were. So I
5:54
Speaker 1: think that's the key. Does that you make? Do you
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Speaker 1: do you push that one high? I sort of doubt day. Actually,
6:00
Speaker 1: I think you're you know, somewhere in here, you slow
6:03
Speaker 1: the whole thing down because of the consumer. I'm actually
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Speaker 1: surprised ted that, you know, some of our friends in
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Speaker 1: Texas and Oklahoma I haven't started drilling more. But I
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Speaker 1: guess they're disciplined. Well, there's two things go into that.
6:15
Speaker 1: One they the leases are really expensive right now to
6:20
Speaker 1: go buy a brand new lease to drill. And first
6:22
Speaker 1: of all, and everybody's out buying minerals, everybody. I'm in
6:26
Speaker 1: a couple of mineral deals myself private. But what happens
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Speaker 1: is everybody's out by a mineral. So the mental that
6:32
Speaker 1: they're paying a lot of money for these leases, and
6:34
Speaker 1: so that starts out high, and then you really have
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Speaker 1: all the expenses have gone up a lot. Now, all right, Ted,
6:40
Speaker 1: we always the politicians are gonna pull the rug out
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Speaker 1: from under you soon enough, anyway, throw a little politics.
6:47
Speaker 1: We're talking economics here, but boy, we always learned something
6:50
Speaker 1: from Ted, Ted ocally founder and managing partner ox Boat
6:53
Speaker 1: great on Ted. Yep, absolutely, we'll talk later with Ted.
7:01
Speaker 1: So you know, I like to walk around with a
7:03
Speaker 1: little bill fold, a little bit of cash, and I
7:05
Speaker 1: actually done at mom with park Raceway this past weekend,
7:08
Speaker 1: so I got some little winnings in my betting on
7:11
Speaker 1: the horse on the ponies had a decent day, not
7:14
Speaker 1: a great day. But the kids don't have cash. They
7:16
Speaker 1: just everything's on an app, on a card, on this
7:19
Speaker 1: and on that. I mean back in the day, I
7:20
Speaker 1: don't use my credit card. When was something meaningful? I
7:22
Speaker 1: just use my watch every I know, now the watch
7:25
Speaker 1: and now the phone. Video. Peter's chief operating officer of
7:28
Speaker 1: Markhetta joined this. Margaret is a NASDAC traded company trading
7:33
Speaker 1: on the symbol m QUE. Came public last year. Video
7:38
Speaker 1: talk to us about what you guys at Marcatta are
7:41
Speaker 1: doing in the fintech space. Thanks so much for having
7:46
Speaker 1: me here. It's such an exciting time to talk to
7:48
Speaker 1: you about Marcatta and what is going on in the
7:50
Speaker 1: fintech space. As a bit of background and contact. Marcatta
7:54
Speaker 1: is the first modern card issuing platform. So we enable
7:57
Speaker 1: any business to be able to build a card of
8:00
Speaker 1: their choice to serve their customer, their vendor, their end
8:03
Speaker 1: user using very developer friendly tools. And so we're sitting
8:07
Speaker 1: at the intersection of watching some of the most modern
8:10
Speaker 1: payment flows happening in the industry. But is it a
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Speaker 1: card um in collaboration with Visa or MasterCard or Goldman Sachs, Like,
8:20
Speaker 1: how does the how does it work? Correct? So, Visa, MasterCard,
8:25
Speaker 1: Discover are all our partners, and so we run our
8:30
Speaker 1: cards on their payment rails and they've been early partners
8:34
Speaker 1: of us. On the journey. We have many customers from
8:38
Speaker 1: most of the on demand delivery companies by now paid
8:40
Speaker 1: later providers, some of the largest financial institutions like JP,
8:44
Speaker 1: Morgan Chase and Market by Goldman Sachs is as you mentioned,
8:48
Speaker 1: so we really allow anyone from the most modern innovators
8:52
Speaker 1: to the largest financial institutions to the latest fintech to
8:56
Speaker 1: be able to build a innovative card of their choice.
8:58
Speaker 1: They're very different from the cards you and I have
9:00
Speaker 1: in our wallets that do very little. Right if you
9:03
Speaker 1: think about the old cards, they check a balance, maybe
9:05
Speaker 1: verify the zip code, and imagine a card that allows
9:08
Speaker 1: you to pay installments over time, or to be truly
9:11
Speaker 1: digitally native, or to ensure that the gig worker picks
9:14
Speaker 1: up exactly your order from that restaurant or that grocery store.
9:18
Speaker 1: That's the level of control that's possible on a Marquetta
9:20
Speaker 1: issued card. So videos, it just feels like with the pandemic,
9:25
Speaker 1: people took more and more of their personal financial I
9:30
Speaker 1: guess responsibilities themselves and using more and more digital technology.
9:35
Speaker 1: I know I use my bank apps much more than
9:37
Speaker 1: I did pre pandemic. So what are you seeing from
9:42
Speaker 1: from from businesses? Is that what they want? I mean,
9:44
Speaker 1: do they need? They? Are they looking to reduce the
9:46
Speaker 1: reliance on banks or banks being intermediated a little bit?
9:51
Speaker 1: So a couple of things here. The pandemic, as you mentioned,
9:54
Speaker 1: has been probably the largest and biggest digital transformation accelerant
10:01
Speaker 1: for payments. Um, it's so funny hearing you speak about cash,
10:05
Speaker 1: but now people think of cash as being dirty. No
10:07
Speaker 1: one wants to touch it because it's no longer a
10:09
Speaker 1: question of inconvenience now it's a and uh and banks
10:16
Speaker 1: are okay with that because now they have more data. Right,
10:19
Speaker 1: any time money is moving electronically, it's safer. You have
10:24
Speaker 1: better tracking, you have better analytics, you have better intelligence
10:28
Speaker 1: on on where that money is going. And so you're
10:30
Speaker 1: not seeing banks getting intermediated. You're actually seeing them enjoy
10:34
Speaker 1: this and and explore this further. And it's also been
10:37
Speaker 1: a bit of a forcing function for them. You know,
10:39
Speaker 1: now we're seeing sixty percent of the consumers are using
10:43
Speaker 1: their bank mobile app regularly versus visiting a bank's physical branch,
10:48
Speaker 1: which is only nine How do banks feel about that?
10:51
Speaker 1: I think they feel pretty good because the cost of
10:54
Speaker 1: operating a physical branch is pretty high, and if they
10:57
Speaker 1: can close more of those physical branches and not hurt
11:00
Speaker 1: their business, I think that's good news all around. By
11:03
Speaker 1: the way, our visa and MasterCard still kind of my
11:06
Speaker 1: only choices because I can't remember which card I had
11:11
Speaker 1: or which card they accept But I had the wrong
11:13
Speaker 1: combination at Costco the other day, um, and had to
11:17
Speaker 1: and had to pull out a water cash. Um, Paul
11:20
Speaker 1: Sweeney style. Is there something else? Is there room for
11:23
Speaker 1: something else? Oh? There absolutely is. I mean, we have
11:27
Speaker 1: used a master card, you have Amax, you have discovered
11:29
Speaker 1: you have paulse and you have a series of local networks,
11:32
Speaker 1: especially when you go international. Of course, THESA and MasterCard
11:35
Speaker 1: tent I still have the lion's share of the market,
11:39
Speaker 1: but but you're definitely seeing you know, smaller networks operate
11:43
Speaker 1: in UH in international markets for sure. Video thank you
11:47
Speaker 1: so much for joining us. Really fascinating stuff there was
11:50
Speaker 1: up talking fintech is boyneaging and money. It is changing
11:55
Speaker 1: very quickly as technology continues to be deployed across financial services.
11:59
Speaker 1: Video p chief operating Officer for Marquetta Nastac traded Company.
12:05
Speaker 1: M Q is the symbol on NASTACK. All right, let's
12:10
Speaker 1: bring in Katie Greifeld. She's here in our Bloomberg Interactive
12:12
Speaker 1: Broker studio. She's a cross asset reporter. One of the
12:15
Speaker 1: cross assets I want to talk about is E t
12:18
Speaker 1: F s we've had. And she's not just a cross
12:21
Speaker 1: asset reporter. What else? She anchors the Bloomberg E t
12:25
Speaker 1: F Show. When is the t F i Q on
12:28
Speaker 1: Bloomberg Television. I would say it's every Monday at one pm,
12:32
Speaker 1: but this week it's Wednesday at one pm. It is,
12:35
Speaker 1: which is tomorrow? Yeah? Yeah, Well, we have quite a crew,
12:41
Speaker 1: Matt Miller one of them. Eric Falcunis, I've never seen
12:44
Speaker 1: you guys in the same room though we have like
12:46
Speaker 1: a rotating cast show. Eric has hair. That's the easy
12:50
Speaker 1: way to say on that part. All right, Katie, what
12:52
Speaker 1: do you got for us on the E t F biz? Okay? Well,
12:54
Speaker 1: I want to start with em funds because they really
12:56
Speaker 1: saw huge inflows last week. If you look overall, a
12:59
Speaker 1: two point a billion dollar streak. Uh, that's interesting in
13:03
Speaker 1: and of itself. But what's more interesting if you dig
13:05
Speaker 1: under the surface, a lot of that is actually just
13:07
Speaker 1: black Rock, And the sort of the thinking in the
13:11
Speaker 1: market is that's black Rock tweaking one of its model portfolios.
13:14
Speaker 1: It's this huge, booming business model portfolios. They have trillions
13:17
Speaker 1: of dollars in them and basically they're ready made strategies
13:20
Speaker 1: that advisors can pick off the shelf and give to
13:23
Speaker 1: their clients. Black Rock huge in that business. And if
13:26
Speaker 1: you look at the I Shares m s C I
13:29
Speaker 1: Emerging Markets mint Vall Factor E t F, it's taken
13:32
Speaker 1: into ticker. The E E m V is the ticker
13:36
Speaker 1: taking in billions and billions of dollars over the past
13:38
Speaker 1: few weeks. Uh. And the thinking there is that, Okay,
13:41
Speaker 1: nothing was really going on with the E t F
13:43
Speaker 1: until a couple of weeks ago. This is probably just
13:46
Speaker 1: black rock shifting around some money and the ripple effects.
13:49
Speaker 1: As you can see if you look at the category
13:51
Speaker 1: of overall, it's just black rock. So I'm I love
13:56
Speaker 1: the show mainly because I love the funk chin E
14:01
Speaker 1: t F go. So I was able to find the
14:03
Speaker 1: information you were just telling us by typing E t
14:06
Speaker 1: F go. And I'm looking at all funds um, asset
14:09
Speaker 1: class equity. I guess I could take that out right,
14:13
Speaker 1: and then I and then I started by flow. I
14:15
Speaker 1: look at the one week flow and I see E
14:18
Speaker 1: m V is the sixth sixth biggest. Now if I
14:21
Speaker 1: take out the equities, Um, you're starting to add other
14:24
Speaker 1: things in there. Um. But such a cool function. Did
14:29
Speaker 1: such about tunists actually make this himself? I don't know
14:32
Speaker 1: if we can credit him with that, but he certainly
14:35
Speaker 1: has popularized. One of the things that Paul was talking
14:37
Speaker 1: about is that investors love E t s on the
14:40
Speaker 1: markets on it's way up. Um, But what about when
14:43
Speaker 1: it's on its way down? Now we do know you
14:45
Speaker 1: can supercharge bets short bets with the t F s right, you,
14:48
Speaker 1: certainly has been dangerous. Only sophisticated investors should try this.
14:53
Speaker 1: But that being said, if you look at the pro
14:56
Speaker 1: shares Bitcoin strategy e t F this remember this is
14:59
Speaker 1: the first derivatives bitcoin backed sort of e t F
15:03
Speaker 1: that launched in the US. Two big fanfare back in
15:06
Speaker 1: October has uh you guys probably know. Bitcoin hasn't done
15:10
Speaker 1: too hot since October since this fun launch. It's actually
15:12
Speaker 1: one of the worst performing e t F so far
15:14
Speaker 1: this year. What's interesting if you look at the short interest,
15:17
Speaker 1: the ticker is bit O b I t O and
15:20
Speaker 1: the short interest on this e t F is close
15:22
Speaker 1: to an all time high. It's hovering around ten percent.
15:25
Speaker 1: And this caught my eye because there's not yet a
15:28
Speaker 1: short bitcoin futures e t F in the U S.
15:30
Speaker 1: There's been filings, nothing has been approved yet though, so
15:33
Speaker 1: it seems like in the meantime traders are turning to
15:35
Speaker 1: this fund and shorting it sort of as a proxy
15:38
Speaker 1: for that short bitcoin exposure. If you also look at
15:41
Speaker 1: the put call ratio on this e t F, which
15:43
Speaker 1: you can also do on the terminal, super high, close
15:45
Speaker 1: to a record, so just shows you that a lot
15:47
Speaker 1: of people are bracing for more bitcoin downside here positioning
15:50
Speaker 1: for it. How do you see the put call ratio?
15:52
Speaker 1: Oh my gosh, this is sort of a long involved
15:54
Speaker 1: process on G chart. I can show you, tell me after,
15:58
Speaker 1: show you after all right, So, how about fund flows
16:01
Speaker 1: were as the market turned down in two What have
16:04
Speaker 1: we seen for fund flows for ETFs? You've seen so
16:06
Speaker 1: much money going to bond ETFs, to bond out of
16:10
Speaker 1: bond utual funds, like a hundred and fifty What are
16:12
Speaker 1: you talking about year to date right now? Year to date?
16:14
Speaker 1: We're talking year to date. You've seen I don't know,
16:16
Speaker 1: some fifty billion dollars going to bond e t f s,
16:19
Speaker 1: mostly to the short end, those cash like e t
16:22
Speaker 1: f s. Also, just in the last week or so,
16:24
Speaker 1: you've started to see some money come back into broad
16:27
Speaker 1: index tracking equity funds such as SPY and VOOS. So
16:31
Speaker 1: there is some by the dip impulse there, but a
16:34
Speaker 1: lot and value right and if you look here to
16:36
Speaker 1: date is the biggest inflows year to date. But v
16:41
Speaker 1: TV is the second biggest, and that is the Vanguard
16:45
Speaker 1: Value et F. So' strong stomach for that one. But
16:48
Speaker 1: people are doing it. I don't think so I feel
16:50
Speaker 1: like why you know, I don't know. I feel you
16:53
Speaker 1: know what. I love cows. We talk about cows on
16:55
Speaker 1: this show a lot cash cows and the brilliant that
16:59
Speaker 1: you can make plays like this in a very violatile
17:02
Speaker 1: market where people are worried about girls, feel like value
17:05
Speaker 1: continues to break hearts. It has its moments in the sun,
17:08
Speaker 1: and it always goes alive, certainly in your lifetime. It's true.
17:12
Speaker 1: All right, Katie, good stuff as always, Katie Greifeldt here
17:15
Speaker 1: in Bloomberg and her actor broker studio. She's across asset reporter.
17:23
Speaker 1: Let's bring in Alfonso Pettiello right now, m Alfonso, what's
17:28
Speaker 1: going to happen at the e c B. Are they
17:29
Speaker 1: going to get realness fight against inflation? Are they still
17:32
Speaker 1: going to give us like little bip increases? Well, guys,
17:39
Speaker 1: the incentive scheme of the European Central Bank has clearly
17:42
Speaker 1: changed here um and they have to tighten. They have
17:46
Speaker 1: to tie them because they need to preserve credibility. Very
17:49
Speaker 1: little that left on the inflation fighting front. The guys,
17:53
Speaker 1: you were saying inflition is printing pretty high in you know,
17:56
Speaker 1: it's not only headlines, but core inflation is three point
17:58
Speaker 1: eight percent on a U new basis, and if you
18:01
Speaker 1: look at the composition, it's broading towards the services side
18:04
Speaker 1: of the inflation from the stickiest parts of the inflationary basket.
18:08
Speaker 1: And this scares policymakers in the first place, so they
18:11
Speaker 1: will hike. And starting to hear the first discussion about
18:14
Speaker 1: the fifty basis morning right in September. So fun So,
18:17
Speaker 1: I mean it feels too probably a lot of our listeners.
18:20
Speaker 1: They hear commentators say the US Federal Reserve is behind
18:24
Speaker 1: the curve, but it seems to me that the e
18:27
Speaker 1: c B is even further behind the curve. How effective
18:30
Speaker 1: can they be to the extent they do turn more hawkers,
18:35
Speaker 1: they can be pretty effective, to ask me. So um
18:38
Speaker 1: monetary policy should always be judged in comparison to what
18:42
Speaker 1: the neutral interest rate is for the economy. And we
18:45
Speaker 1: hear the Federal Reserve and estimates called the neutral rate
18:47
Speaker 1: at round about two to two and a half percent, right,
18:50
Speaker 1: and now European points in nakers have to come up
18:53
Speaker 1: with an estimate too, because they're gonna hike interest rates.
18:55
Speaker 1: But up until what point if you want to rein
18:58
Speaker 1: an inflation. What you do is you interest rates above
19:01
Speaker 1: neutral levels. Well, European policymakers and now begating whether whether
19:05
Speaker 1: you know, neutral levels in Europe are between one and
19:07
Speaker 1: two percent, but the deposit rate in Europe is negative
19:10
Speaker 1: to fifty basis point. So before we get at least
19:13
Speaker 1: to neutral levels the European Central Bank, that's too hyped
19:16
Speaker 1: by at least a hundred and fifty basis point, which
19:19
Speaker 1: would be the fastest hiking cycle the European Central Bank
19:22
Speaker 1: they's ever embarked, I think over the last fifty into
19:25
Speaker 1: twenty years at least. All right, in terms of what
19:30
Speaker 1: we're seeing here in the US, is there a big
19:32
Speaker 1: difference between um, you know, our central Bank here with
19:37
Speaker 1: its two mandates and others who which only have one. Yeah,
19:42
Speaker 1: I mean effectively, the c B offers two mondays if
19:45
Speaker 1: you're asking, one is postibility, the other one is to
19:48
Speaker 1: preserve Europe and the euro as a good jobs which
19:53
Speaker 1: which limits as well the ability that they have to
19:56
Speaker 1: really hike and to push on the title. And possibly
20:01
Speaker 1: that you need to look at the Italian government, bomb
20:03
Speaker 1: spreads against the German government bones they're already above two
20:06
Speaker 1: hundred basis point because investors as missing that monetary policy
20:10
Speaker 1: is about to get either and quick, but each is
20:12
Speaker 1: going to be wins by the three hundreds or four
20:14
Speaker 1: hundred basis point. Then obviously preserving the Euro, which is
20:17
Speaker 1: the second Hidden Monday of ec PEO, will come back
20:19
Speaker 1: to play again. All right, Alfonso, good stuff. We appreciate
20:23
Speaker 1: getting your global perspective. Alfonso Petillo is the author of
20:27
Speaker 1: the macro Accompass, and he's also formerly a fun manager.
20:30
Speaker 1: To I n G. Thanks for listening to the Bloomberg
20:34
Speaker 1: Markets podcast. You can subscribe and listen to interviews with
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Speaker 1: Apple Podcasts or whatever podcast platform you prefer. I'm Matt Miller.
20:42
Speaker 1: I'm on Twitter at Matt Miller V three. Pet On
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Speaker 1: boll Sweeney I'm on Twitter at pt Sweeney. Before the podcast,
20:49
Speaker 1: you can always catch us worldwide at Bloomberg Radio