WEBVTT - Single Best Idea with Tom Keene: Andreas Utermann & Chris Whalen

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Single best idea. It has been an extraordinary twenty four hours,

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<v Speaker 2>and dare I say the effort since I believe it

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<v Speaker 2>was Saturday at five pm six pm Eastern time, has

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<v Speaker 2>been just extraordinary of staying with the markets, staying with

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<v Speaker 2>what we do, and also this arch political moment for

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<v Speaker 2>the nation, and today was no exception, just wonderful conversations here.

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<v Speaker 2>I really would emphasize our conversation with David Gerrow, the

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<v Speaker 2>host of The Big Take, and his perception of the

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<v Speaker 2>Midwest theology that Donald Trump and Senator Vance are trying

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<v Speaker 2>to capture in Milwaukee. That was really a high point

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<v Speaker 2>for us today. There are friends of surveillance that you

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<v Speaker 2>lose touch with over the years and then they come

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<v Speaker 2>back in our studios today from Zurich via Munich was

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<v Speaker 2>Andreas Uderman, who was profound at Mercury Asset Management years

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<v Speaker 2>ago and then at Alians in Munich and not a

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<v Speaker 2>vulnerable in Zurich in asset management. We had a piercing

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<v Speaker 2>conversation on the future of active management mutual funds in ETFs.

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<v Speaker 2>He's migrated to Switzerland. We got an update. Here's Andreas

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<v Speaker 2>Uderman on the state.

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<v Speaker 3>Of Switzerland economy is doing really well. I think part

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<v Speaker 3>of the reason is that the level of trust by

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<v Speaker 3>corporations that operate in Switzerland in terms of the institutional

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<v Speaker 3>stability of the country is very, very high. Foreign direct

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<v Speaker 3>investment into Switzerland knows that as well. It's one of

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<v Speaker 3>the few countries in the world it was really stable

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<v Speaker 3>from an institutional framework perspective. Interestingly, and that's really to

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<v Speaker 3>the great credit of many Swiss corporations. The strength of

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<v Speaker 3>the Swiss frank, which is multi day long and continues,

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<v Speaker 3>is being absorbed by increasing productivity in many stress corporations,

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<v Speaker 3>and that means that they can continue to exports efficiently.

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<v Speaker 2>Andrea Suderman Avantevelle of Zurich, Switzerland. Chris Whalen dark in

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<v Speaker 2>the door today. He's been at work on an update

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<v Speaker 2>of his magisterial book, Inflated. I can't say enough about

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<v Speaker 2>not three hundred the four hundred, four hundred and fifty

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<v Speaker 2>pages of Chris Whalen's Inflated. It is a waltz through

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<v Speaker 2>American finance from the beginning through the nineteenth century into

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<v Speaker 2>the twentieth century. It ought to be a required read

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<v Speaker 2>for every finance brat freshman in every college, and he's

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<v Speaker 2>doing a redo of it off of rather what he

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<v Speaker 2>did fifteen years ago. It's great to talk to him

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<v Speaker 2>about the analog back to the pandemic of nineteen nineteen

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<v Speaker 2>in the roaring twenties. He does agree this is a

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<v Speaker 2>roaring twenties that we're living right now. Near the end

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<v Speaker 2>of our conversation, I looked at the big banks, four

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<v Speaker 2>big banks in Golden Sachs and Morgan Stanley, and I said,

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<v Speaker 2>with their City Group.

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<v Speaker 1>Well, they're a top five money center bank because of

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<v Speaker 1>the payments platform. But you're right, they have pulled back.

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<v Speaker 1>There was a time when City was the biggest derivative

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<v Speaker 1>shop in the industry. You know who it is now,

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<v Speaker 1>Morgan Stanley, Morgan Stanley and Goldman.

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<v Speaker 2>Now where do you perceive City Group in five.

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<v Speaker 1>Years merged with somebody else, maybe with a big asset

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<v Speaker 1>management business, maybe Schwab. But that's what they're missing right now.

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<v Speaker 1>They sold out the Morgan Stanley with the Smith's Barney transaction.

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<v Speaker 1>They don't have the asset manager to make them look

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<v Speaker 1>like everybody else, and they're still you know, Jane Frasier's

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<v Speaker 1>an enormous work there in terms of getting their expenses

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<v Speaker 1>in line, but she still has to cut five points

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<v Speaker 1>out of their efficiency ratio before she could even talk

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<v Speaker 1>about Jamie Donoman. You know that's the high bar he

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<v Speaker 1>is set ten seconds.

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<v Speaker 2>Who would buy them? Who's lined up to be the

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<v Speaker 2>one to Folden's group in their international I.

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<v Speaker 1>Keep saying they should merge with Goldman, Let the City

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<v Speaker 1>Bank run credit, Let the Goldman boys run deals, because

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<v Speaker 1>Goldman cannot run credit. To save their lives. They're getting

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<v Speaker 1>a kicking every quarter in credit.

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<v Speaker 2>Chris Whyland just definitive, and again his note that he

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<v Speaker 2>does is really a required read on Wall Street. We

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<v Speaker 2>have much more coming up from Milwaukee. Joe Matthew and

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<v Speaker 2>Kayley Lines leading our coverage here of the Republican National

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<v Speaker 2>Convention for Bloomberg's surveillance. It's simple, We're out on YouTube.

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<v Speaker 2>Go to Bloomberg Podcasts search for that. Subscribe to Bloomberg

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<v Speaker 2>Matthew and Kayley Are you doing on Apple car Play

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<v Speaker 2>Single Best Idea