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Speaker 1: Ever, duplicy Ellens.

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Speaker 2: Now MasterCard is a great example of what investors are

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Speaker 2: focused on globally right now. What they're focused on is

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Speaker 2: the slowdown in US economic growth expectations, regulatory risk and

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Speaker 2: how that impacts companies, and new technology like open banking

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Speaker 2: and neo banks and so on. Now, MasterCard, the reason

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Speaker 2: it's a great example is because it's influenced by all

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Speaker 2: of those things. And to talk us through it, we've

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Speaker 2: got Sam Dickey of Fisher Funds with us. Hey, Sam,

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Speaker 2: there is any So Sam, let's start by talking about

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Speaker 2: these themes. Okay, slow down in US growth expectations, what's

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Speaker 2: going on here?

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Speaker 1: Yeah, you and I talked about that last week. So

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Speaker 1: there has been a slow down US economic growth expectations,

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Speaker 1: still slowly growing, but just slowing slightly. And MISSUS care

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Speaker 1: because economic growth drives corporate earning growth and that drive

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Speaker 1: stock prices.

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Speaker 2: And then what about the regulatory risk? What are investors

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Speaker 2: thinking about this?

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Speaker 1: Well, that that is super interesting because ideally, of course,

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Speaker 1: you don't long own companies that run the risk that

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Speaker 1: the regulator might come knocking. It turns out that if

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Speaker 1: you aim to invest in some of the highest quality

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Speaker 1: companies in the world. They tend to attract the attention

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Speaker 1: they're regulator because they're just so large and important. So

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Speaker 1: think of companies like Google and Microsoft. They dominate their industries,

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Speaker 1: have been fabulous investments over time, and almost as night

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Speaker 1: follows day, attract the unwanted attention of the regulator. Open banking, Yeah,

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Speaker 1: think about open banking is just another I mean, innovation

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Speaker 1: is running at the fastest pace ever, which brings competition

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Speaker 1: and disruption, and open banking is no different an opportunity

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Speaker 1: and as you know, it allows competitors of or too

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Speaker 1: traditional banks with customer approval to easily access customer data

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Speaker 1: and offer new services to those customers. So I think

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Speaker 1: about that as an open up the competition to banks

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Speaker 1: and maybe some disintermediation of banks. And investors obviously pay

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Speaker 1: attention to that because banks are a big part of

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Speaker 1: global stock market.

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Speaker 2: And so how does master Card get affected by all

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Speaker 2: of these things?

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Speaker 1: Yeah, well, I think you did write the start the

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Speaker 1: best way to bring a live team that a vests

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Speaker 1: is focused on around the world, and it's through the

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Speaker 1: lend of a single company, and master Card is one

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Speaker 1: of a handful of global payments network companies. In fact,

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Speaker 1: with the second largest in the world mine Visa. It

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Speaker 1: doesn't isss. Your credit cards are controls of a very

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Speaker 1: valuable networks and routes the flow of money between so

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Speaker 1: you and I, the coffee shop down the road, and banks,

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Speaker 1: and it is getting buffeted by all three of those things.

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Speaker 1: So when you think about it slowing economy and how

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Speaker 1: that impacts MasterCard, If we spend one hundred dollars with

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Speaker 1: our our MasterCard this month, master card clips the ticket

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Speaker 1: to the tune of about twenty cents. Now, if we

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Speaker 1: parton our pelts and only spend ninety bucks next month,

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Speaker 1: master card and eclips eighteen cents of it's the sort

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Speaker 1: of a direct impact to the top line and then

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Speaker 1: gottomline you see about the regulator. Master part is kind

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Speaker 1: of in the round of those companies I talked about,

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Speaker 1: so Microsoft and Google. It is so critical to global

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Speaker 1: money flows as it does attract the attention of the

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Speaker 1: regulator via fines and law, legal cases, et cetera. And

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Speaker 1: when you think about disruption of opportunity that comes from

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Speaker 1: say open banking and neo banks, it might face more

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Speaker 1: competition from so neobanks, from virtual credit cards, for example,

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Speaker 1: but they can in fact be a beneficiary because these

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Speaker 1: neobanks don't have their own you know, these networks or

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Speaker 1: old money routes to control the fly of money. So

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Speaker 1: in fact, the neo banks will end up up using

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Speaker 1: master cards valuable networks.

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Speaker 2: So what does this all mean for investors in SAM.

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Speaker 1: I think most when you think about the economy, the

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Speaker 1: first one, most high quality companies globala are temporarily impacted

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Speaker 1: by back macro backdrop. But the trick is to invest

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Speaker 1: in companies with really long growth runways, almost in respect

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Speaker 1: of the economic backdrop. So if you take master Card

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Speaker 1: for example, it is directly impacted by the economy as

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Speaker 1: we see it as people tighten their belts, But on

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Speaker 1: a longer term view, there's still a very long runway

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Speaker 1: to go, believe it or not, of switching cash and

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Speaker 1: check payments to cards around the world. So take Europe,

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Speaker 1: which we thought was fairly developed. Still the has forty

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Speaker 1: percent of payment, particularly in Southern Europe, done by cash

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Speaker 1: and check. And when you think about regulatory risk, it

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Speaker 1: really just does go with a territory that most high

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Speaker 1: quality companies on Earth are tractical area the regulator we

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Speaker 1: do typically need these companies own. The market can get

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Speaker 1: overly concerned about regulation. And as for competition, it is

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Speaker 1: coming secker and faster than you ever given. Innovations running fast.

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Speaker 1: So make sure any company you invest in has a

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Speaker 1: really wide economic motivators business and has a service or

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Speaker 1: product that customers can't do without.

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Speaker 2: Oh that's really good advice, Sam, Thank you so much,

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Speaker 2: As always that Sam Dickie of Fisher Fun.

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Speaker 1: For more from Hither Duplessy Allen Drive, listen live to

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Speaker 1: news talks it'd be from four pm weekdays, or follow

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