1 00:00:00,120 --> 00:00:06,800 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:11,640 --> 00:00:15,440 Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 3 00:00:15,480 --> 00:00:18,680 Speaker 2: with Lisa Bromwitz and Amrie Hordern. Join us each day 4 00:00:18,720 --> 00:00:22,280 Speaker 2: for insight from the best in markets, economics, and geopolitics 5 00:00:22,440 --> 00:00:24,920 Speaker 2: from our global headquarters in New York City. We are 6 00:00:24,920 --> 00:00:27,680 Speaker 2: live on Bloomberg Television weekday mornings from six to nine 7 00:00:27,720 --> 00:00:31,280 Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify or 8 00:00:31,320 --> 00:00:33,960 Speaker 2: anywhere else you listen, and as always on the Bloomberg 9 00:00:34,040 --> 00:00:37,559 Speaker 2: Terminal and the Bloomberg Business app. Brian Leavitt of Invesco 10 00:00:37,680 --> 00:00:40,680 Speaker 2: joining the chorus of warnings, writing this, for the first 11 00:00:40,720 --> 00:00:44,120 Speaker 2: time and a year, we favor a more defensive posture 12 00:00:44,120 --> 00:00:46,080 Speaker 2: in the near term. That does not mean that we 13 00:00:46,159 --> 00:00:50,400 Speaker 2: eliminate equities from the portfolio, but rather shift towards higher quality. 14 00:00:50,560 --> 00:00:51,440 Speaker 2: Brian joins us for more. 15 00:00:51,440 --> 00:00:52,760 Speaker 3: Brian and Morningtier. Good morning. 16 00:00:52,800 --> 00:00:55,200 Speaker 2: Before we get into what you're doing beneath the surface, 17 00:00:55,240 --> 00:00:57,160 Speaker 2: this is a big change for you. Typically you come 18 00:00:57,200 --> 00:00:59,200 Speaker 2: on the program, you sort of push all the bears aside, 19 00:00:59,200 --> 00:01:00,600 Speaker 2: and you say, I O want to be part of 20 00:01:00,600 --> 00:01:01,080 Speaker 2: this market. 21 00:01:01,120 --> 00:01:01,760 Speaker 3: What's changed for you? 22 00:01:02,160 --> 00:01:03,560 Speaker 4: Well, the first thing I want to say, is I 23 00:01:03,600 --> 00:01:06,319 Speaker 4: still believe over the intermediate term we want to be inequities. 24 00:01:06,360 --> 00:01:07,160 Speaker 3: I still come. 25 00:01:07,080 --> 00:01:11,759 Speaker 4: Back to peak inflation, peak rates, peak tightening is favorable 26 00:01:11,760 --> 00:01:14,200 Speaker 4: for equities over the intermedia term time peer What we're 27 00:01:14,200 --> 00:01:17,240 Speaker 4: looking at is more of a tactical indicator that says, look, 28 00:01:17,280 --> 00:01:21,000 Speaker 4: the global economy is growing below trend and it looks 29 00:01:21,040 --> 00:01:23,720 Speaker 4: like things are starting to soften. So when your below 30 00:01:23,880 --> 00:01:27,160 Speaker 4: trend and things are weakening, you want to be more 31 00:01:27,240 --> 00:01:31,319 Speaker 4: defensive in the portfolio. And some of that global weakness 32 00:01:31,440 --> 00:01:33,240 Speaker 4: is being led by the United States. 33 00:01:33,319 --> 00:01:36,559 Speaker 3: Things are slowing. It's not a recession call. 34 00:01:36,840 --> 00:01:40,679 Speaker 4: It's not you know, something ominous is coming, but rather 35 00:01:40,840 --> 00:01:43,920 Speaker 4: tactically things are slowing down and we're still waiting on 36 00:01:43,920 --> 00:01:44,720 Speaker 4: the FED to respond. 37 00:01:44,880 --> 00:01:46,800 Speaker 2: That's the change, and I think that's the important distinction. 38 00:01:46,880 --> 00:01:49,840 Speaker 2: We've been talking about global growth xus below trend for 39 00:01:49,880 --> 00:01:52,120 Speaker 2: quite a while now. The new ingredients is the US 40 00:01:52,200 --> 00:01:54,640 Speaker 2: slowing down's slow, And something we've been talking about is 41 00:01:54,640 --> 00:01:57,200 Speaker 2: at what point does someone like you become more concerned 42 00:01:57,200 --> 00:02:00,080 Speaker 2: about what's slow down, that it's not just slowing, that 43 00:02:00,160 --> 00:02:00,880 Speaker 2: it's slow. 44 00:02:00,760 --> 00:02:02,760 Speaker 4: That it's slow, and that you may in fact have 45 00:02:02,800 --> 00:02:05,720 Speaker 4: a recession. The good news is that we don't have 46 00:02:05,760 --> 00:02:08,200 Speaker 4: a lot of excess in this economy. If you look 47 00:02:08,240 --> 00:02:11,520 Speaker 4: at residential investment as a percent of GDP, if you 48 00:02:11,560 --> 00:02:15,160 Speaker 4: look at inventory to sales ratios, this isn't an economy 49 00:02:15,200 --> 00:02:17,480 Speaker 4: that's dealing with a lot of excess. We don't have 50 00:02:17,560 --> 00:02:20,200 Speaker 4: businesses that are over levered, banks that are sitting on 51 00:02:20,240 --> 00:02:22,240 Speaker 4: piles of bad loans, and you see it. 52 00:02:22,240 --> 00:02:23,160 Speaker 3: In the corporate bomb market. 53 00:02:23,200 --> 00:02:26,239 Speaker 4: Corporate bomb market isn't worried about this economy as of 54 00:02:26,360 --> 00:02:31,079 Speaker 4: yet at all. Instead, what you're seeing is weakness, slow down, 55 00:02:31,120 --> 00:02:33,280 Speaker 4: which by the way, is what the Federal Reserve wanted. 56 00:02:33,440 --> 00:02:36,040 Speaker 3: It's here. The challenge is. 57 00:02:36,000 --> 00:02:37,679 Speaker 4: We've got a five and a quarter five and a 58 00:02:37,720 --> 00:02:42,840 Speaker 4: half percent FED funds target, and yet the economy is 59 00:02:43,480 --> 00:02:47,600 Speaker 4: slowing and inflation's in the comfort zone. So you're you've 60 00:02:47,840 --> 00:02:50,520 Speaker 4: you know, it's not a perfect backdrop for equities over 61 00:02:50,600 --> 00:02:51,360 Speaker 4: the next few months. 62 00:02:51,440 --> 00:02:53,799 Speaker 5: You know, you say, go into quality, and I wonder 63 00:02:54,200 --> 00:02:57,160 Speaker 5: how quality has changed given the fact that some of 64 00:02:57,200 --> 00:03:00,480 Speaker 5: the companies that are minting money have gained so much 65 00:03:00,560 --> 00:03:03,160 Speaker 5: value over the past twelve months that they're the ones 66 00:03:03,160 --> 00:03:05,160 Speaker 5: and I'm thinking of Market Stanley, they're the ones that 67 00:03:05,160 --> 00:03:07,520 Speaker 5: people are getting nervous about are you on board with 68 00:03:07,560 --> 00:03:09,360 Speaker 5: that This idea that some of the high flyers I'm 69 00:03:09,360 --> 00:03:12,320 Speaker 5: thinking of Nvidia and thinking of Microsoft maybe have gotten 70 00:03:12,360 --> 00:03:14,120 Speaker 5: over their skis well. 71 00:03:13,960 --> 00:03:15,799 Speaker 3: Perhaps a little, but that doesn't mean that it doesn't 72 00:03:15,840 --> 00:03:16,160 Speaker 3: go on. 73 00:03:16,600 --> 00:03:19,480 Speaker 4: You know, as the economy slows, investors are going to 74 00:03:19,560 --> 00:03:22,799 Speaker 4: be looking for a spot for businesses that they think 75 00:03:22,880 --> 00:03:25,360 Speaker 4: are going to continue to do okay in this environment. 76 00:03:25,440 --> 00:03:27,720 Speaker 4: And so I think part of the challenge was our 77 00:03:28,320 --> 00:03:32,720 Speaker 4: risk on call, which started last July was a great one, 78 00:03:33,120 --> 00:03:36,040 Speaker 4: but really most of the broadening of the rally happened 79 00:03:36,040 --> 00:03:39,120 Speaker 4: in a couple of months, right small mid twenty percent 80 00:03:39,160 --> 00:03:42,240 Speaker 4: in two months November and December on expectations of rate cuts, 81 00:03:42,360 --> 00:03:44,400 Speaker 4: and then it's been all concentrated. 82 00:03:44,440 --> 00:03:47,080 Speaker 3: So the risk on rally should have been broader. 83 00:03:47,600 --> 00:03:49,840 Speaker 4: Then when you get to a more defensive spot, you 84 00:03:49,920 --> 00:03:52,880 Speaker 4: tend to get more higher qualities. So yeah, they are 85 00:03:52,960 --> 00:03:55,240 Speaker 4: perhaps a little bit elevated, but I think that's where 86 00:03:55,240 --> 00:03:58,360 Speaker 4: investors camp out in a slowdown that could persist. 87 00:03:59,040 --> 00:04:02,120 Speaker 3: Ultimately, what ends up happening. 88 00:04:01,760 --> 00:04:04,680 Speaker 4: Over the next couple of years is in a easing 89 00:04:04,720 --> 00:04:08,040 Speaker 4: cycle with a normalization the yield curve, you should broaden out, 90 00:04:08,400 --> 00:04:10,720 Speaker 4: But in the near term I think investors hunker down 91 00:04:10,720 --> 00:04:12,040 Speaker 4: a bit and stay in those names. 92 00:04:12,120 --> 00:04:13,960 Speaker 5: So you're still a fomo kind of guy, just with 93 00:04:14,040 --> 00:04:16,720 Speaker 5: respect to Nvidia and Microsoft, not necessarily what the rest 94 00:04:16,720 --> 00:04:17,880 Speaker 5: of the broadening at is that correct? 95 00:04:17,920 --> 00:04:19,440 Speaker 4: Well, I'm a fomo kind of guy. Over the next 96 00:04:19,440 --> 00:04:22,280 Speaker 4: three to five years. Absolutely. Again, you know, in the 97 00:04:22,320 --> 00:04:24,960 Speaker 4: near term the headline might be it turns a little 98 00:04:25,000 --> 00:04:26,360 Speaker 4: bit bearish from where we've been. 99 00:04:26,360 --> 00:04:28,320 Speaker 3: I mean, we were full risk on since July. 100 00:04:29,080 --> 00:04:32,200 Speaker 4: As things slow and we wait for easing, we get 101 00:04:32,200 --> 00:04:34,560 Speaker 4: a little bit more defensive. But again, over the next 102 00:04:34,600 --> 00:04:37,320 Speaker 4: three to five years, peak tightening, peak rates, peak inflation, 103 00:04:37,440 --> 00:04:38,080 Speaker 4: favor stocks. 104 00:04:38,200 --> 00:04:41,279 Speaker 5: Some of these words that people use, like becoming cautious 105 00:04:41,560 --> 00:04:44,640 Speaker 5: or being more risk on, have different meanings depending on 106 00:04:44,680 --> 00:04:47,240 Speaker 5: who the person is, and the idea of being cautious 107 00:04:47,279 --> 00:04:50,320 Speaker 5: in the past has been going into long bonds, having 108 00:04:50,360 --> 00:04:54,719 Speaker 5: more cash and going into say dividend place in the 109 00:04:54,839 --> 00:04:58,080 Speaker 5: equity market, what's the new conservative position. 110 00:04:58,160 --> 00:05:00,160 Speaker 4: Yeah, So the way we think about it, if you 111 00:05:00,320 --> 00:05:03,719 Speaker 4: take a sixty forty portfolio, when we're more risk on 112 00:05:03,880 --> 00:05:06,200 Speaker 4: that forty percent fixed income is going to be far 113 00:05:06,240 --> 00:05:09,120 Speaker 4: more credit. Credit tends to do well, in more of 114 00:05:09,160 --> 00:05:12,120 Speaker 4: a recovery risk on type of environment, we would increase 115 00:05:12,200 --> 00:05:16,680 Speaker 4: exposure to longer duration bonds, quality bonds play Frank can 116 00:05:16,680 --> 00:05:19,520 Speaker 4: get some very nice yields there these days, and I 117 00:05:19,560 --> 00:05:22,200 Speaker 4: would be a little bit cautious about sitting out in 118 00:05:22,240 --> 00:05:25,360 Speaker 4: money markets because those yields will ultimately. 119 00:05:24,920 --> 00:05:28,240 Speaker 3: Be coming down. On the equity side. 120 00:05:28,320 --> 00:05:31,160 Speaker 4: When you're more cautious, you reduce some of your exposure 121 00:05:31,200 --> 00:05:34,880 Speaker 4: to international and you move into factors like quality and 122 00:05:34,960 --> 00:05:37,880 Speaker 4: low volatility, and you reduce a little bit of your 123 00:05:37,880 --> 00:05:40,920 Speaker 4: small cap exposure and go more large cap. So it's 124 00:05:40,960 --> 00:05:45,040 Speaker 4: not wholesale changes, it's protecting some of the gains you've 125 00:05:45,080 --> 00:05:48,359 Speaker 4: had in the portfolio and adding some protection in the 126 00:05:48,360 --> 00:05:50,039 Speaker 4: fixed income market to a portfolio. 127 00:05:50,120 --> 00:05:52,080 Speaker 6: We had this debate yesterday about whether or not as 128 00:05:52,080 --> 00:05:54,360 Speaker 6: an investor you can look through the noise of politics. 129 00:05:54,400 --> 00:05:58,320 Speaker 6: Do you find potentially advantages ahead of November opportunities or 130 00:05:58,360 --> 00:05:59,000 Speaker 6: do you think they're. 131 00:05:58,920 --> 00:06:01,520 Speaker 3: Setbacks look through the noise of politics. 132 00:06:01,520 --> 00:06:05,480 Speaker 4: If you look back historically and you look at volatility 133 00:06:05,680 --> 00:06:10,360 Speaker 4: in markets, it doesn't come because of elections. So if 134 00:06:10,400 --> 00:06:12,960 Speaker 4: you look at October and November of election years, the 135 00:06:13,000 --> 00:06:15,720 Speaker 4: only years that you see a meaningful increase in volatility 136 00:06:15,880 --> 00:06:18,560 Speaker 4: are two thousand and oh eight, and that was clearly 137 00:06:18,600 --> 00:06:21,600 Speaker 4: for other reasons than what was going on in politics, 138 00:06:21,600 --> 00:06:23,640 Speaker 4: And if we have time for it, I like to 139 00:06:23,680 --> 00:06:27,200 Speaker 4: tell investors three points on politics. The first one is 140 00:06:27,480 --> 00:06:31,080 Speaker 4: since nineteen fifty seven when the SMP went live, every 141 00:06:31,080 --> 00:06:34,720 Speaker 4: president has had a positive return over their administration except 142 00:06:34,839 --> 00:06:37,520 Speaker 4: w and Nixon because their terms ended in bad recessions 143 00:06:37,600 --> 00:06:41,239 Speaker 4: or they left office in bad recessions. Number two, Trump's 144 00:06:41,279 --> 00:06:45,760 Speaker 4: portfolio over Trump's term SMP was up sixty percent. Where's 145 00:06:45,760 --> 00:06:49,320 Speaker 4: Biden right now? Sixty percent? So it didn't matter at all. 146 00:06:49,560 --> 00:06:51,280 Speaker 4: And the third point I like to make is if 147 00:06:51,279 --> 00:06:54,920 Speaker 4: politics matter so much, then how did Obama and Reagan 148 00:06:55,000 --> 00:06:57,040 Speaker 4: both have two hundred percent advances in the. 149 00:06:57,000 --> 00:06:59,960 Speaker 3: Market during their term? They both had great starting points. 150 00:07:00,480 --> 00:07:02,960 Speaker 4: You know, I could become president in a recession when 151 00:07:02,960 --> 00:07:05,240 Speaker 4: the Fed's helping out and probably get a two hundred. 152 00:07:05,279 --> 00:07:07,840 Speaker 5: Are you running because I think that that's a Amory. 153 00:07:07,560 --> 00:07:08,960 Speaker 3: Told me I have zero chance. 154 00:07:09,120 --> 00:07:11,280 Speaker 2: So you could head to the convention in August and 155 00:07:11,320 --> 00:07:12,920 Speaker 2: make a challenge if you want. I think some people 156 00:07:13,000 --> 00:07:15,320 Speaker 2: might be thinking about that. There have been changes though 157 00:07:15,600 --> 00:07:19,040 Speaker 2: over the last decade twenty sixteen. November sixteen, we were 158 00:07:19,040 --> 00:07:22,520 Speaker 2: talking about investment in infrastructure, the Trump Trade. 159 00:07:22,640 --> 00:07:23,320 Speaker 3: Twenty twenty. 160 00:07:23,400 --> 00:07:25,880 Speaker 2: You saw what happened when we started to see signs 161 00:07:25,880 --> 00:07:28,560 Speaker 2: of a blue sweep and the prospect of more fiscal 162 00:07:28,640 --> 00:07:31,680 Speaker 2: stimulus coming down a pike. There have been changes, and 163 00:07:31,680 --> 00:07:34,040 Speaker 2: we're starting to wonder whether there's going to be consequences 164 00:07:34,040 --> 00:07:36,680 Speaker 2: for the bond market for two presidents, two leaders that 165 00:07:36,720 --> 00:07:38,760 Speaker 2: don't seem to be willing to do anything about the 166 00:07:38,800 --> 00:07:40,360 Speaker 2: deficit in a big way anytime soon. 167 00:07:40,480 --> 00:07:40,760 Speaker 3: Yeah. 168 00:07:41,040 --> 00:07:43,480 Speaker 4: Well, I mean with regards to the changes, you know, 169 00:07:43,640 --> 00:07:46,120 Speaker 4: if we do go back to that twenty sixteen moment, 170 00:07:46,680 --> 00:07:49,280 Speaker 4: it was the whole I think from a lot of 171 00:07:49,360 --> 00:07:53,720 Speaker 4: voters that Trump could unlock growth, could unlock value, and 172 00:07:53,760 --> 00:07:55,840 Speaker 4: you had very much the same market leadership you had 173 00:07:55,840 --> 00:07:59,480 Speaker 4: on dur Obama. So we we didn't change the economic 174 00:07:59,680 --> 00:08:02,840 Speaker 4: envo ironmen as a result of simply electing a new president. 175 00:08:02,840 --> 00:08:04,640 Speaker 4: I mean, they basically get to get a couple of 176 00:08:04,680 --> 00:08:07,680 Speaker 4: things done. They don't get to have their whole agenda 177 00:08:08,240 --> 00:08:11,440 Speaker 4: play out. Now with regards to rates, I heard this 178 00:08:11,520 --> 00:08:13,640 Speaker 4: a little bit a week or two ago. You would 179 00:08:13,680 --> 00:08:15,840 Speaker 4: know better than me, but right there was a quick 180 00:08:15,880 --> 00:08:18,360 Speaker 4: move up in the ten year treasury eight a handful 181 00:08:18,400 --> 00:08:20,720 Speaker 4: of days ago, and people were asking me, is this 182 00:08:20,760 --> 00:08:22,880 Speaker 4: the bond vigilantes or they finally here? 183 00:08:22,920 --> 00:08:25,240 Speaker 3: There there's nothing in the bond. 184 00:08:24,960 --> 00:08:28,160 Speaker 4: Market that suggests the bond vigilantes are here. This is 185 00:08:28,200 --> 00:08:31,880 Speaker 4: a bond market that's been moving very much on nominal 186 00:08:31,920 --> 00:08:35,560 Speaker 4: growth expectations and expectations for the Fed. If the bond 187 00:08:35,640 --> 00:08:39,280 Speaker 4: vigilantes were here, the US dollar would not be as strong. 188 00:08:39,360 --> 00:08:40,000 Speaker 3: As it is. 189 00:08:40,120 --> 00:08:43,800 Speaker 4: So no, it doesn't seem as if the bond market 190 00:08:43,920 --> 00:08:46,520 Speaker 4: views this as a problem. And I've been saying for 191 00:08:46,559 --> 00:08:48,600 Speaker 4: a long time, John, I don't think that this is 192 00:08:48,640 --> 00:08:50,880 Speaker 4: going to be a problem. My clients think it's the 193 00:08:50,880 --> 00:08:54,319 Speaker 4: biggest problem we have. The US debt level job is 194 00:08:54,360 --> 00:08:56,760 Speaker 4: to provide therapy. Well, I've been doing this for twenty 195 00:08:56,800 --> 00:09:00,319 Speaker 4: five years, and the debts increase by seven times, five 196 00:09:00,360 --> 00:09:02,840 Speaker 4: trillion to thirty five trillion, and yet rates are at 197 00:09:02,840 --> 00:09:05,400 Speaker 4: four percent and the dollars strong. So you know, it's 198 00:09:05,440 --> 00:09:07,679 Speaker 4: the Alfredy Newman what me worry at this point? 199 00:09:07,760 --> 00:09:07,880 Speaker 2: Right? 200 00:09:08,000 --> 00:09:10,600 Speaker 3: I mean it's it's we're a very wealthy country. 201 00:09:10,800 --> 00:09:13,320 Speaker 4: Total household network, there's one hundred and fifty trillion in 202 00:09:13,320 --> 00:09:15,480 Speaker 4: this country compared to thirty five trillion in debt. 203 00:09:15,720 --> 00:09:17,920 Speaker 3: So I'm not overly concerned about this. Bran. 204 00:09:18,040 --> 00:09:31,480 Speaker 2: It's going to see it, Bran Levitt IV Invesco. It's 205 00:09:31,520 --> 00:09:35,480 Speaker 2: the latest Congresswoman Mikey Sheryl of New Jersey becoming the 206 00:09:35,640 --> 00:09:38,600 Speaker 2: ninth House Democrat to call on President Biden to drop 207 00:09:38,640 --> 00:09:42,280 Speaker 2: out of the race. Bidon's campaign working to restore confidence 208 00:09:42,400 --> 00:09:45,400 Speaker 2: in his candidacy and bolster support from progressive leaders around 209 00:09:45,400 --> 00:09:47,880 Speaker 2: the country. Joining us now, please to say is the 210 00:09:47,920 --> 00:09:51,960 Speaker 2: Democratic Congressman Jonathan Jackson of Illinois. Congressman, thank you for 211 00:09:52,000 --> 00:09:54,199 Speaker 2: being with Bloomberg Surveillance this morning. I just want to 212 00:09:54,240 --> 00:09:56,480 Speaker 2: share a quote of yours with our audience, which I 213 00:09:56,480 --> 00:09:58,800 Speaker 2: think is going to imply where you stand. I think 214 00:09:58,800 --> 00:10:02,280 Speaker 2: he's up to the grueling of the presidential campaign season. 215 00:10:02,480 --> 00:10:04,360 Speaker 2: A question I would have for you, Congressman, I think 216 00:10:04,440 --> 00:10:05,640 Speaker 2: is a question that a lot of people in this 217 00:10:05,679 --> 00:10:08,280 Speaker 2: country have too. It's not just about the four months 218 00:10:08,400 --> 00:10:11,080 Speaker 2: ahead of us, it's the four years after that. What 219 00:10:11,200 --> 00:10:13,600 Speaker 2: gives you the impression that he can handle not just 220 00:10:13,640 --> 00:10:16,480 Speaker 2: the campaign for the next four months, but the four 221 00:10:16,520 --> 00:10:21,040 Speaker 2: and a half years of governing. Kate still need today well. 222 00:10:21,120 --> 00:10:23,480 Speaker 7: I think he's got a great team around him. I 223 00:10:23,520 --> 00:10:27,760 Speaker 7: think his agenda is clear. His focus has been very precise. 224 00:10:28,160 --> 00:10:30,360 Speaker 7: When I think of what the alternatives that we are 225 00:10:30,559 --> 00:10:33,960 Speaker 7: confronting at the moment, it's about direction, it's about character. 226 00:10:34,600 --> 00:10:37,800 Speaker 7: President Biden has been very robust on the campaign trail 227 00:10:37,880 --> 00:10:42,200 Speaker 7: in the last week since that debate, if you will, 228 00:10:42,559 --> 00:10:44,560 Speaker 7: and so I'm very excited for him. I think that 229 00:10:44,960 --> 00:10:47,840 Speaker 7: he's got a very strong number two and Vice President 230 00:10:47,920 --> 00:10:51,559 Speaker 7: Kamala Harris, and he was able to share with us 231 00:10:51,920 --> 00:10:55,560 Speaker 7: as the CBC members on a private zoom call. He 232 00:10:55,640 --> 00:10:58,360 Speaker 7: was able to take our questions, and so I'm very excited. 233 00:10:58,400 --> 00:11:00,920 Speaker 7: I'm very confident that he can go forward and will go. 234 00:11:01,040 --> 00:11:03,200 Speaker 7: So we'll go for in a very robust manner. 235 00:11:03,640 --> 00:11:05,480 Speaker 6: If you think he has a strong number two, and 236 00:11:05,520 --> 00:11:08,160 Speaker 6: he's eighty one years old, and the polls continuously show 237 00:11:08,320 --> 00:11:10,600 Speaker 6: not just post to debate, this has been an issue 238 00:11:10,600 --> 00:11:12,960 Speaker 6: with the electorate for over a year that they just 239 00:11:13,000 --> 00:11:16,280 Speaker 6: think he is too old to continue. Why not promote 240 00:11:16,400 --> 00:11:17,040 Speaker 6: the number two? 241 00:11:18,720 --> 00:11:22,160 Speaker 7: I think he has been promoting Vice President Harris, and 242 00:11:22,240 --> 00:11:24,400 Speaker 7: so we don't know what the future holds, but I 243 00:11:24,400 --> 00:11:27,640 Speaker 7: would tell you this that they've been out on the campaign. 244 00:11:27,800 --> 00:11:31,520 Speaker 7: This has been a scandal free administration. He's been very focused. 245 00:11:31,800 --> 00:11:34,680 Speaker 7: If you look at what the alternative is on the chaos, 246 00:11:34,720 --> 00:11:37,800 Speaker 7: the confusion, the calamity, if you will. I think the 247 00:11:37,840 --> 00:11:40,439 Speaker 7: press has not put it in the proper lights. If 248 00:11:40,480 --> 00:11:43,600 Speaker 7: you think at a person that's been convicted by jury 249 00:11:43,640 --> 00:11:46,520 Speaker 7: of their peers of sexual assault, you usually get a 250 00:11:46,520 --> 00:11:50,960 Speaker 7: handle on your name being called a sexual offender former president, 251 00:11:51,040 --> 00:11:53,040 Speaker 7: but no, they've given him a pass on that. So 252 00:11:53,200 --> 00:11:55,440 Speaker 7: character is on the battle, and I think the African 253 00:11:55,480 --> 00:11:58,480 Speaker 7: American community is very clear at what's at stake. We've 254 00:11:58,520 --> 00:12:00,880 Speaker 7: gone in the wrong direction with the United States Supreme Court, 255 00:12:01,400 --> 00:12:03,959 Speaker 7: if you will. We've had one hundred and sixteen justices 256 00:12:04,000 --> 00:12:07,280 Speaker 7: in American history, roughly twelve thousand, five hundred and ten 257 00:12:08,000 --> 00:12:12,000 Speaker 7: representatives in the House of Representatives. We've had forty six presidents. 258 00:12:12,320 --> 00:12:15,199 Speaker 7: But this non elected group of people, the citizen of 259 00:12:15,240 --> 00:12:18,200 Speaker 7: the United States Supreme Court, is able to dictate law. 260 00:12:18,360 --> 00:12:20,079 Speaker 7: I think we need to look at some sort of 261 00:12:20,160 --> 00:12:23,240 Speaker 7: judicial reform in the future. That the power that they 262 00:12:23,280 --> 00:12:26,719 Speaker 7: have and the corruption that they've displayed is unprecedented. So 263 00:12:26,760 --> 00:12:29,880 Speaker 7: the Supreme Court is on the ballot for this election season. 264 00:12:29,920 --> 00:12:32,560 Speaker 7: As well, and I would trust President Joe Biden and 265 00:12:32,640 --> 00:12:35,960 Speaker 7: Vice President Harris to make that decision and recommendation before 266 00:12:36,000 --> 00:12:37,600 Speaker 7: the American people Congress. 267 00:12:37,600 --> 00:12:38,960 Speaker 6: And I want to share you some new data we 268 00:12:39,000 --> 00:12:42,000 Speaker 6: got this morning from the Cook Political Report. They said 269 00:12:42,040 --> 00:12:46,000 Speaker 6: that Trump's currently is forty seven to forty four percent lead, 270 00:12:46,200 --> 00:12:48,880 Speaker 6: the most dramatic shift they've seen in this race. And 271 00:12:49,000 --> 00:12:52,160 Speaker 6: David Walserman, an analyst there, said, quote, Trump's current numbers 272 00:12:52,160 --> 00:12:56,319 Speaker 6: among Black and Latino voters are incompatible with any plausible 273 00:12:56,440 --> 00:13:00,200 Speaker 6: Democratic victory scenario. What does Joe Biden need to do 274 00:13:00,600 --> 00:13:03,560 Speaker 6: to really shore up the black and Latino communities. 275 00:13:05,480 --> 00:13:08,160 Speaker 7: Well, I think he has to continue to stay in 276 00:13:08,200 --> 00:13:11,400 Speaker 7: front of the community and also share with him all 277 00:13:11,440 --> 00:13:13,360 Speaker 7: the things that he's done and what's to be promised 278 00:13:13,360 --> 00:13:17,120 Speaker 7: in the future. We know on the Sunday before the 279 00:13:17,200 --> 00:13:20,400 Speaker 7: Tuesday election, most Democratic candidates find their way to the 280 00:13:20,400 --> 00:13:23,280 Speaker 7: African American Church. There are some more games that the 281 00:13:23,280 --> 00:13:26,960 Speaker 7: African American Church certainly deserves in the African American community. 282 00:13:27,400 --> 00:13:29,760 Speaker 7: If you think about what President Biden has done, one 283 00:13:29,800 --> 00:13:32,680 Speaker 7: thing that's huge, and there have been many things, is 284 00:13:32,679 --> 00:13:34,839 Speaker 7: that this is the first time an African American woman 285 00:13:35,200 --> 00:13:38,920 Speaker 7: was even considered to go onto the nation's highest court 286 00:13:38,920 --> 00:13:41,800 Speaker 7: in Katanji. Brown and her opinions and her decisions, her 287 00:13:41,920 --> 00:13:44,600 Speaker 7: character is very important for us to have there. What 288 00:13:44,679 --> 00:13:48,080 Speaker 7: he's done on trying to put people on the judiciary 289 00:13:48,320 --> 00:13:51,680 Speaker 7: has been very outstanding. We're now seeing the erosion of 290 00:13:51,679 --> 00:13:55,520 Speaker 7: African American wealth. We're looking at going towards twenty fifty 291 00:13:55,520 --> 00:13:58,560 Speaker 7: where there'll be zero African American wealth. That's also being 292 00:13:58,600 --> 00:14:02,480 Speaker 7: projected that we can talk about peace and security in 293 00:14:02,640 --> 00:14:06,040 Speaker 7: Ukraine and Israel and Gaza and Taiwan and talk about 294 00:14:06,080 --> 00:14:10,040 Speaker 7: rebuilding plans. We can talk about rebuilding urban America. Those 295 00:14:10,080 --> 00:14:12,360 Speaker 7: persons that have had the history of being the descendants 296 00:14:12,520 --> 00:14:15,880 Speaker 7: of Americans, that have been enslaved, that have faced redlining, 297 00:14:16,200 --> 00:14:19,160 Speaker 7: that have faced all the worst of America, that have 298 00:14:19,240 --> 00:14:22,280 Speaker 7: been truly American since the founding of this nation, have 299 00:14:22,400 --> 00:14:24,880 Speaker 7: not had an economic plan that has been sustained and 300 00:14:24,920 --> 00:14:27,400 Speaker 7: that has been implemented. Our cities don't have to look 301 00:14:27,440 --> 00:14:30,400 Speaker 7: this drab, in this dire. We can also pick up 302 00:14:30,440 --> 00:14:32,640 Speaker 7: people in America, and once we do so, we will 303 00:14:32,680 --> 00:14:35,200 Speaker 7: expand the market. I believe in America. I believe there's 304 00:14:35,200 --> 00:14:37,920 Speaker 7: a lot more potential when we saw the past of 305 00:14:38,000 --> 00:14:42,000 Speaker 7: segregated athletic fields once they were transformed into a level 306 00:14:42,000 --> 00:14:44,680 Speaker 7: playing field. Now we're proud of the NBA, proud of 307 00:14:44,720 --> 00:14:47,880 Speaker 7: Major League Baseball, proud of all of these other endeavors. 308 00:14:47,920 --> 00:14:50,080 Speaker 7: We can do that same with our economy when people 309 00:14:50,120 --> 00:14:52,480 Speaker 7: have equal access to capital. That has to be a 310 00:14:52,520 --> 00:14:55,160 Speaker 7: major focus of the Biden administration. What are they going 311 00:14:55,200 --> 00:14:58,840 Speaker 7: to be the financial institutions created to have long term 312 00:14:59,000 --> 00:15:03,880 Speaker 7: sustainable growth and inclusivity in the American economy. That's a promise, 313 00:15:03,880 --> 00:15:06,000 Speaker 7: as a commitment that should be made to the African 314 00:15:06,040 --> 00:15:09,280 Speaker 7: American community. It'd be good for America, it'd be good 315 00:15:09,320 --> 00:15:09,880 Speaker 7: for the world. 316 00:15:10,320 --> 00:15:12,280 Speaker 5: Congressman, I want to go back to what you were 317 00:15:12,280 --> 00:15:14,120 Speaker 5: talking about at the outset, where you were saying that 318 00:15:14,160 --> 00:15:16,640 Speaker 5: it's character on the ballot is who you are going 319 00:15:16,680 --> 00:15:20,520 Speaker 5: to elect as just a person a candidate, and you're 320 00:15:20,560 --> 00:15:23,000 Speaker 5: talking about Donald Trump. There are a number of polls 321 00:15:23,200 --> 00:15:26,480 Speaker 5: that have shown that Kamala Harris or many other candidates 322 00:15:26,520 --> 00:15:30,200 Speaker 5: would do better than Joe Biden across from the ballot, 323 00:15:30,520 --> 00:15:34,000 Speaker 5: across from Donald Trump. Why are you still supporting Joe 324 00:15:34,040 --> 00:15:36,720 Speaker 5: Biden if you think that he has a lesser chance 325 00:15:37,080 --> 00:15:40,760 Speaker 5: than other potential Democratic contenders to win in an election 326 00:15:40,840 --> 00:15:42,720 Speaker 5: that you're framing is quite important. 327 00:15:44,200 --> 00:15:46,040 Speaker 7: Well, I would say it this way. You're talking to 328 00:15:46,080 --> 00:15:49,040 Speaker 7: someone that's in elected office, and anyone that's been in 329 00:15:49,040 --> 00:15:53,440 Speaker 7: this position before, you understand critics come after doers, and 330 00:15:53,520 --> 00:15:56,400 Speaker 7: so we don't look at all the opinion polls. Opinion 331 00:15:56,400 --> 00:15:58,720 Speaker 7: polls would tell us we're wrong. Opinion polls would tell 332 00:15:58,760 --> 00:16:02,120 Speaker 7: us that we shouldn't, we can't win, and we've overcome 333 00:16:02,440 --> 00:16:05,200 Speaker 7: many of those obstacles. We're in the position now of 334 00:16:05,280 --> 00:16:08,160 Speaker 7: molding and shaping opinion. And that's where I stand on 335 00:16:08,200 --> 00:16:11,520 Speaker 7: the side of I appreciate those that have dissented. I 336 00:16:11,600 --> 00:16:14,880 Speaker 7: disagree with them. I think it's healthy that we have debates. 337 00:16:14,920 --> 00:16:16,920 Speaker 7: I would have liked to have seen a more rigorous 338 00:16:16,960 --> 00:16:22,000 Speaker 7: primary debate schedule that gives other persons the opportunity to 339 00:16:22,040 --> 00:16:24,280 Speaker 7: get on the stage. But here we are. We're about 340 00:16:24,320 --> 00:16:27,480 Speaker 7: four weeks away from the Democratic Convention, and I think 341 00:16:27,640 --> 00:16:33,200 Speaker 7: these different opinions and party persons that may disagree, I 342 00:16:33,280 --> 00:16:35,760 Speaker 7: disagree with them, but I respect their opinion. I think 343 00:16:35,800 --> 00:16:38,040 Speaker 7: in the end, it all comes together. And so I 344 00:16:38,040 --> 00:16:40,960 Speaker 7: don't want someone to be crowned the next president. If 345 00:16:40,960 --> 00:16:43,200 Speaker 7: someone has a dissenting voice. I want them to be 346 00:16:43,240 --> 00:16:45,840 Speaker 7: heard at the convention. Let's keep it open, let's keep 347 00:16:45,880 --> 00:16:48,440 Speaker 7: the conversation robust, and let's take our case to the 348 00:16:48,520 --> 00:16:52,120 Speaker 7: American people. This ultimately is decided not by the donors, 349 00:16:52,440 --> 00:16:55,960 Speaker 7: but by a radical proposition, and that is that every 350 00:16:56,000 --> 00:16:58,840 Speaker 7: person has a vote, and it counts on election day. 351 00:16:58,880 --> 00:17:01,520 Speaker 7: One person, one vote. And so this is where the 352 00:17:01,520 --> 00:17:05,520 Speaker 7: bigg in their class and the working class all have 353 00:17:05,880 --> 00:17:10,400 Speaker 7: one voice, one vote on election ding. So I follow opinion. 354 00:17:10,560 --> 00:17:13,080 Speaker 7: Now it's time for us to shift opinion, not simply 355 00:17:13,400 --> 00:17:15,200 Speaker 7: follow what the opinion polls are seeing. 356 00:17:15,320 --> 00:17:17,200 Speaker 2: A Congressman, I wish we had more time, because we've 357 00:17:17,200 --> 00:17:20,120 Speaker 2: got plenty of follow ups to that particular last comment, Congressman, 358 00:17:20,160 --> 00:17:24,440 Speaker 2: thank you. Congressman Jonathan Jackson of Illinois joining us from Washington, DC, 359 00:17:35,119 --> 00:17:38,960 Speaker 2: Drew Pettit writing this sentiment around stocks with high exposure 360 00:17:39,000 --> 00:17:41,960 Speaker 2: to AI is the most elevated it has been since 361 00:17:42,000 --> 00:17:46,000 Speaker 2: twenty nineteen. We advocate taking some gains in AI high 362 00:17:46,000 --> 00:17:49,840 Speaker 2: flyers and redistributing more broadly across the themes value chain. 363 00:17:50,119 --> 00:17:52,280 Speaker 2: Drew joins us now for more dre It's wonderfully have 364 00:17:52,400 --> 00:17:54,120 Speaker 2: you with us on the program. Lots of people talking 365 00:17:54,119 --> 00:17:56,159 Speaker 2: about your note in the last twenty four hours. I 366 00:17:56,160 --> 00:17:58,320 Speaker 2: think we have to draw a distinction, as you have done, 367 00:17:58,600 --> 00:18:02,760 Speaker 2: between the AI and enablers and perhaps the AI adopters. 368 00:18:02,760 --> 00:18:04,920 Speaker 2: Can you help us work through your framework for thinking 369 00:18:04,920 --> 00:18:06,399 Speaker 2: about equacies at the moment. 370 00:18:07,720 --> 00:18:09,720 Speaker 1: Yeah, well, thanks for having me on this morning. 371 00:18:09,800 --> 00:18:11,959 Speaker 8: So when we think of AI, we think of it 372 00:18:12,000 --> 00:18:15,920 Speaker 8: in three pieces. The enablers, so the semiconductors, the picks 373 00:18:15,960 --> 00:18:19,119 Speaker 8: and shovels. We get that that's the trade that's really working. 374 00:18:19,640 --> 00:18:23,159 Speaker 8: The creators, so the software sided thing things. After you 375 00:18:23,280 --> 00:18:25,680 Speaker 8: have the hardware, you have to teach it to do 376 00:18:25,720 --> 00:18:28,359 Speaker 8: something and package that in a product. And then I 377 00:18:28,400 --> 00:18:31,480 Speaker 8: think the last category it's the users. So you call 378 00:18:31,520 --> 00:18:34,479 Speaker 8: them the adopters, we called users. Those are the companies 379 00:18:34,520 --> 00:18:37,480 Speaker 8: that are going to take those tools and either integrate 380 00:18:37,520 --> 00:18:40,000 Speaker 8: it into their products to make it better or in 381 00:18:40,040 --> 00:18:43,719 Speaker 8: their background processes to make their companies more efficient. So 382 00:18:43,760 --> 00:18:46,640 Speaker 8: I think that whole value chain eventually benefits. But the 383 00:18:46,680 --> 00:18:49,520 Speaker 8: market is just trading the enablers right now. 384 00:18:49,800 --> 00:18:51,840 Speaker 5: In part true because it's very hard to see where 385 00:18:51,840 --> 00:18:53,720 Speaker 5: the money is and we haven't seen it in the 386 00:18:53,760 --> 00:18:56,800 Speaker 5: earnings for some of the end users. So why is 387 00:18:56,880 --> 00:18:59,639 Speaker 5: this the right time in your view to make that shift. 388 00:19:01,240 --> 00:19:04,720 Speaker 8: You've just had that almost parabolic move in some of 389 00:19:04,760 --> 00:19:08,840 Speaker 8: these high flyers, like you see that with Nvidia, TSMC 390 00:19:09,000 --> 00:19:11,679 Speaker 8: overnight is up another two percent. So a lot of 391 00:19:11,680 --> 00:19:15,720 Speaker 8: these names, with how aggressive they have moved, portfolio managers 392 00:19:15,760 --> 00:19:19,640 Speaker 8: are overweight. So we're not saying dump these names because 393 00:19:19,720 --> 00:19:22,680 Speaker 8: to your point earlier, yeah, there's some career risks there 394 00:19:22,680 --> 00:19:25,479 Speaker 8: if you're not in them, but if you're overweight, use 395 00:19:25,560 --> 00:19:26,680 Speaker 8: that to fund the next leg. 396 00:19:27,160 --> 00:19:28,040 Speaker 1: It will come. 397 00:19:28,400 --> 00:19:31,440 Speaker 8: Markets don't stay on the same theme forever, and in 398 00:19:31,440 --> 00:19:35,640 Speaker 8: some cases, I think the implied expectations with these enabler 399 00:19:35,720 --> 00:19:40,320 Speaker 8: stock prices moving very far, very fast, get really hard 400 00:19:40,640 --> 00:19:42,400 Speaker 8: to meet and exceed going forward. 401 00:19:42,520 --> 00:19:44,639 Speaker 5: You know, it's fascinating to me, Drew, because on the 402 00:19:44,680 --> 00:19:47,840 Speaker 5: surface your call sounded quite verish. Actually, the idea of 403 00:19:47,920 --> 00:19:50,280 Speaker 5: it's time to liquidate some of the positions is time 404 00:19:50,280 --> 00:19:53,000 Speaker 5: to take profits. It screams as okay, I get out 405 00:19:53,000 --> 00:19:54,760 Speaker 5: of Nvidia, and then you start listening to what you're 406 00:19:54,760 --> 00:19:57,480 Speaker 5: actually saying, and it's actually incredibly bullish, is that we 407 00:19:57,520 --> 00:20:00,399 Speaker 5: haven't valued high enough some of the AI and you 408 00:20:00,440 --> 00:20:03,080 Speaker 5: could get better gains in other names that haven't made 409 00:20:03,119 --> 00:20:05,920 Speaker 5: parabolic moves. How do you sort of reconcile that at 410 00:20:05,920 --> 00:20:08,840 Speaker 5: a time when people are concerned about valuation, when people 411 00:20:08,840 --> 00:20:12,240 Speaker 5: are concerned about a weakening growth picture, And frankly, there 412 00:20:12,359 --> 00:20:14,760 Speaker 5: is that kind of uncertainty of whether we're actually seeing 413 00:20:14,800 --> 00:20:16,840 Speaker 5: the profitability in some of these companies. 414 00:20:18,160 --> 00:20:21,880 Speaker 8: So to me, again, we're focusing on larger cap, already 415 00:20:21,880 --> 00:20:25,399 Speaker 8: profitable stocks. But I hate to say this, but I 416 00:20:25,400 --> 00:20:28,600 Speaker 8: don't really care about traditional valuation metrics. Don't talk to 417 00:20:28,640 --> 00:20:30,960 Speaker 8: me about a fifty pe stock that's in the early 418 00:20:31,000 --> 00:20:34,359 Speaker 8: innings of a new growth phase. What we do is 419 00:20:34,359 --> 00:20:37,200 Speaker 8: we look at the market price today, make some assumptions 420 00:20:37,200 --> 00:20:39,720 Speaker 8: about the discount rate and what the terminal value should 421 00:20:39,720 --> 00:20:42,040 Speaker 8: be for the company, and we try to figure out 422 00:20:42,160 --> 00:20:43,639 Speaker 8: what kind of growth rate do I need in the 423 00:20:43,680 --> 00:20:45,560 Speaker 8: next five years to justify the stock. 424 00:20:46,200 --> 00:20:48,440 Speaker 1: And some of these stocks do. 425 00:20:48,560 --> 00:20:53,359 Speaker 8: Have expectations, like cell side consensus expectations that tell me 426 00:20:53,400 --> 00:20:55,880 Speaker 8: they can meet what the market's pricing in. So that's 427 00:20:55,920 --> 00:20:58,520 Speaker 8: why we don't think AI is a bubble yet. Yes, 428 00:20:58,560 --> 00:21:01,960 Speaker 8: it's getting extended. Yes, price moves make you answy. Yes, 429 00:21:02,000 --> 00:21:04,040 Speaker 8: some of the options data makes you a little nervous, 430 00:21:04,480 --> 00:21:07,760 Speaker 8: But really there is a growth and fundamental story here. 431 00:21:07,800 --> 00:21:10,320 Speaker 1: That's why it's not a bubble, at least not yet. 432 00:21:10,800 --> 00:21:13,640 Speaker 6: At least not yet. What would take us there, then, Drew. 433 00:21:14,800 --> 00:21:19,840 Speaker 8: If you really don't see increased beats and raises from 434 00:21:19,880 --> 00:21:23,080 Speaker 8: a lot of the AI pure plays, I think Number one, 435 00:21:23,119 --> 00:21:26,000 Speaker 8: you have to recognize when stocks move this fast, it's 436 00:21:26,040 --> 00:21:27,280 Speaker 8: more than just good earnings. 437 00:21:27,400 --> 00:21:29,639 Speaker 1: You need to change future expectations as well. 438 00:21:30,119 --> 00:21:33,520 Speaker 8: And then if prices keep moving this way without fundamentals 439 00:21:33,560 --> 00:21:38,000 Speaker 8: following that, that's the concern. That's what really got us 440 00:21:38,080 --> 00:21:40,880 Speaker 8: in the tech bubble. I think that's the big difference 441 00:21:40,880 --> 00:21:42,640 Speaker 8: from then to today, Drew. 442 00:21:42,680 --> 00:21:45,080 Speaker 2: I think we're all interested in just how clients received 443 00:21:45,119 --> 00:21:48,199 Speaker 2: this call yesterday, just trying to engage sentiment. Did they 444 00:21:48,200 --> 00:21:50,119 Speaker 2: push back, did they engage with it? What was it 445 00:21:50,160 --> 00:21:50,800 Speaker 2: like yesterday? 446 00:21:52,080 --> 00:21:54,879 Speaker 8: I was actually a little bit surprised that there wasn't 447 00:21:55,119 --> 00:21:58,280 Speaker 8: more pushback. I think a lot of people actually we're 448 00:21:58,280 --> 00:22:00,800 Speaker 8: on the flip side, like I am getting nervous. I 449 00:22:00,880 --> 00:22:03,520 Speaker 8: am worried that we are pricing in too much. So 450 00:22:03,800 --> 00:22:07,240 Speaker 8: it was actually relatively well received, But on the flip side, 451 00:22:07,359 --> 00:22:08,160 Speaker 8: I'm not sure. 452 00:22:08,040 --> 00:22:09,680 Speaker 1: People are ready to hedge. 453 00:22:10,160 --> 00:22:12,800 Speaker 8: Again, that's not our base case, but we always have 454 00:22:12,920 --> 00:22:15,879 Speaker 8: to recognize when we could be wrong because markets make 455 00:22:15,960 --> 00:22:18,720 Speaker 8: a lot of smart people look silly over time, and 456 00:22:18,880 --> 00:22:22,119 Speaker 8: people weren't ready to consider the hedge or the complete. 457 00:22:21,720 --> 00:22:22,600 Speaker 1: Other side of the tree. 458 00:22:23,440 --> 00:22:25,840 Speaker 8: So there's still a lot of AI balls out there, 459 00:22:26,000 --> 00:22:28,000 Speaker 8: but they're cautious bulls. 460 00:22:28,359 --> 00:22:29,679 Speaker 2: Trey, I appreciate the update. 461 00:22:29,760 --> 00:22:30,080 Speaker 3: Ready to do. 462 00:22:30,200 --> 00:22:32,199 Speaker 2: Thanks for making time for us this morning, Drew Pettit 463 00:22:32,240 --> 00:22:36,679 Speaker 2: there of City. This is the Bloomberg Surveillance Podcast, bringing 464 00:22:36,760 --> 00:22:40,359 Speaker 2: you the best in markets, economics, angio politics. You can 465 00:22:40,400 --> 00:22:43,200 Speaker 2: watch the show live on Bloomberg TV weekday mornings from 466 00:22:43,200 --> 00:22:46,480 Speaker 2: six am to nine am Eastern. Subscribe to the podcast 467 00:22:46,520 --> 00:22:49,679 Speaker 2: on Apple, Spotify, or anywhere else you listen, and as 468 00:22:49,720 --> 00:22:52,600 Speaker 2: always on the Bloomberg Terminal and the Bloomberg Business Amp.