WEBVTT - Baltimore Bridge and Biden Polls 0:00:00.080 --> 0:00:06.760 Bloomberg Audio Studios, Podcasts, radio news. 0:00:11.960 --> 0:00:15.560 This is the Bloomberg Surveillance Podcast. I'm Tom Keene along 0:00:15.600 --> 0:00:18.960 with Paul Sweeney. Join us each day for insight from 0:00:18.960 --> 0:00:23.160 the best in economics, finance, investment, and international relations. You 0:00:23.160 --> 0:00:26.520 can also watch the show live on YouTube. Visit the 0:00:26.520 --> 0:00:31.280 Bloomberg Podcast channel on YouTube to see the show weekday 0:00:31.280 --> 0:00:34.320 mornings from seven to ten am Eastern from our global 0:00:34.360 --> 0:00:39.000 headquarters in New York City. Subscribe to the podcast on Apple, Spotify, 0:00:39.360 --> 0:00:42.920 or anywhere else you listen and always I'm Bloomberg Radio, 0:00:43.080 --> 0:00:46.879 the Bloomberg Terminal, and the Bloomberg Business App. Paul went 0:00:46.920 --> 0:00:48.879 to our team and he said, can you get us 0:00:48.920 --> 0:00:52.959 somebody here that's completely holistic on global shipping that can 0:00:53.080 --> 0:00:57.680 understand a Where's mayors Copenhagen, I think Denil I care 0:00:57.720 --> 0:01:01.720 you remember from the Baltic Sea over to Sri Lanka 0:01:01.960 --> 0:01:05.759 through Singapore. All these geographies are around and there has 0:01:05.800 --> 0:01:09.840 to be somebody who's encyclopedic and global shipping and the 0:01:09.840 --> 0:01:13.040 many geographies. John Krtsonis fits the bill. Not only was 0:01:13.120 --> 0:01:17.320 his work at City Group years ago, but with Breakwave Advisors. 0:01:17.640 --> 0:01:22.320 He's a board member with Synergy as well. He's encyclopedic 0:01:22.400 --> 0:01:25.200 on shipping. What are the people doing? John? Thank you 0:01:25.240 --> 0:01:26.880 so much first of all for being with us on 0:01:27.000 --> 0:01:30.800 short notice. What is Maersk doing this morning? What are 0:01:30.800 --> 0:01:33.760 the people in the shipping business do when they have 0:01:33.840 --> 0:01:35.640 a horrific event like this? 0:01:37.600 --> 0:01:38.959 Good morning and thank you for having me. 0:01:39.080 --> 0:01:41.560 Yes, indeed, that's a horrific event, and I think like 0:01:42.040 --> 0:01:44.520 from a shipping perspective, the first thing you have to 0:01:44.560 --> 0:01:48.120 do is obviously find what went wrong? Right, I mean, 0:01:48.880 --> 0:01:52.160 these are state of the r ships, especially this one 0:01:52.480 --> 0:01:54.920 involved in this accident is a brand new ship. He's 0:01:55.080 --> 0:01:58.120 less than ten years old building Korea. These are high 0:01:58.240 --> 0:02:04.040 quality shapes, so very it's a very unlikely phenomenon that 0:02:04.120 --> 0:02:08.520 you get something like that. The other thing is, obviously 0:02:08.560 --> 0:02:11.200 you have to look at the human error. But again, 0:02:11.840 --> 0:02:15.800 when the ships approach ports or tight waterways or areas 0:02:15.800 --> 0:02:19.320 that they don't know very well, you have experienced personnel 0:02:19.360 --> 0:02:22.960 that gets on board from the port, called basically pilots, 0:02:23.240 --> 0:02:25.240 and the other ones we're going to steer the ship 0:02:25.960 --> 0:02:28.799 through the waterway. So there are a lot of elements here. 0:02:28.840 --> 0:02:31.880 One is obviously the human element. The other is the 0:02:31.919 --> 0:02:36.120 mechanical failure, which seems to be the case here. But 0:02:36.240 --> 0:02:39.560 there's also obviously the timing here, because if you happened 0:02:39.680 --> 0:02:43.000 like ten or fifteen minutes later, nothing would have gone wrong. 0:02:43.280 --> 0:02:46.960 Is a process here in the coming quarters in months 0:02:47.000 --> 0:02:51.640 and years, a litigious years in the making process or 0:02:51.760 --> 0:02:56.519 is it covered by insurance and reinsurance and offices in Hamilton, 0:02:56.600 --> 0:03:00.200 Bermuda that I don't know about where there's almost the 0:03:00.360 --> 0:03:04.680 routine how the shipping industry deals with a tragedy like this. 0:03:05.680 --> 0:03:07.200 Well, I don't think it's routine at all. 0:03:07.240 --> 0:03:11.440 I mean usually human laws and hopefully there is none here, 0:03:11.480 --> 0:03:16.280 but human loss, especially outside the ship, is kind that 0:03:16.440 --> 0:03:19.280 is very rare in the maritime industry. You have very 0:03:19.280 --> 0:03:23.120 few incidents globally that you have basically this type of 0:03:24.240 --> 0:03:29.400 an event that will cause basically ordinary citizens to you know. 0:03:29.400 --> 0:03:30.280 To die. 0:03:30.520 --> 0:03:33.639 So I think that's definitely not an ordinary process. It 0:03:33.680 --> 0:03:36.880 will take a very very long time, and it will have. 0:03:36.800 --> 0:03:38.200 A multiple. 0:03:39.280 --> 0:03:42.680 You know, multiple agents organizations involved, especially given that this 0:03:43.280 --> 0:03:44.440 happened in the US. 0:03:45.160 --> 0:03:47.080 John, can you give us a sensis for folks that 0:03:47.320 --> 0:03:49.640 you're not in this business, like at one thirty in 0:03:49.640 --> 0:03:53.720 the morning navigating through a harbor. Is this navigation visual 0:03:53.920 --> 0:03:57.760 Is it by instruments? How is that done? Because it 0:03:57.840 --> 0:04:01.160 seemed like it was significantly you know, off course here. 0:04:02.120 --> 0:04:03.600 Yeah, of course it's not visual. 0:04:03.720 --> 0:04:06.440 Obviously, This are as I said at the beginning, state 0:04:06.480 --> 0:04:09.880 of the art equipment on board and very experienced pilots 0:04:09.880 --> 0:04:12.800 and captains that are going to steer the ship outside, 0:04:12.920 --> 0:04:16.680 you know, to go towards the ocean. So as we 0:04:16.800 --> 0:04:19.040 all saw on the videos, it seems that there's a 0:04:19.080 --> 0:04:24.440 blackout happening just moments before the collision. So again we 0:04:24.480 --> 0:04:26.920 don't know what was happening at that point on the bridge, 0:04:27.000 --> 0:04:31.080 what people were discussing, what was the incident, But it 0:04:31.160 --> 0:04:35.920 seems that a blackout where basically everything stops, the engine stops, 0:04:35.920 --> 0:04:38.000 there is no power, and there is no way you 0:04:38.000 --> 0:04:41.600 can steer the boat the ship away from either. 0:04:41.480 --> 0:04:44.520 Currents or maybe the router get stuck. 0:04:44.600 --> 0:04:47.599 Who knows, but it seems that the mechanical failure is 0:04:47.680 --> 0:04:48.960 most likely scenario here. 0:04:49.160 --> 0:04:51.520 John, Just give us a sense how big Baltimore is 0:04:51.600 --> 0:04:54.240 in the in the global scale of shipping. It seems 0:04:54.279 --> 0:04:56.599 like a busy board. Just give us a sense of 0:04:56.600 --> 0:04:57.840 its relative scale. 0:04:58.400 --> 0:05:03.520 It is very significant in terms of especially of consumer goods, cars, 0:05:04.400 --> 0:05:09.520 stuff that the US imports from abroad is not as 0:05:09.560 --> 0:05:12.159 significant in the commodities business. I mean that to export 0:05:12.200 --> 0:05:15.800 a call from the Baltimore area. But I think like 0:05:16.360 --> 0:05:20.080 probably what's going to be affected most is like deliveries 0:05:20.120 --> 0:05:22.840 of new cars, for example, or consumer goods. But again, 0:05:22.880 --> 0:05:25.200 I mean there is a lot of other areas obviously 0:05:25.279 --> 0:05:29.040 north the New York Harbord all the way down to Georgia, 0:05:29.200 --> 0:05:32.360 Savannah and so on, so that you have alternative destinations. 0:05:33.360 --> 0:05:35.920 But obviously that's going to take a while for the 0:05:36.000 --> 0:05:40.320 situation to resolve and this thing to begin operating normally again. 0:05:40.440 --> 0:05:44.160 So definitely the delays will cause delays in deliveries of 0:05:44.200 --> 0:05:44.960 goods if. 0:05:44.800 --> 0:05:47.760 You're joining US now worldwide and across this nation. As 0:05:47.800 --> 0:05:51.440 we look at a horrific bridge accident in Baltimore. John 0:05:51.640 --> 0:05:56.200 Katsunas joins US now managing partner Breakaway Advisors, has worked 0:05:56.200 --> 0:05:58.640 with Energy, has worked with City Group over the years, 0:05:58.680 --> 0:06:03.640 just truly cyclopedic on the linkage of global shipping in 0:06:03.720 --> 0:06:08.200 the equity and helysis. John, I think a question that 0:06:08.279 --> 0:06:11.040 a lot of Americans have today that needs to be reviewed. 0:06:11.600 --> 0:06:15.120 It seems like everybody in America is involved in shipping. 0:06:15.240 --> 0:06:18.000 Mariska is over in the Baltic Sea. You and your 0:06:18.040 --> 0:06:21.039 board membership with Centergy. They're out of Athens, Greece. Okay, 0:06:21.040 --> 0:06:26.600 I get that, breakwaves his own beast. Why aren't Americans involved? 0:06:26.720 --> 0:06:32.400 Why aren't there American ships, US ships, US shipping, US 0:06:32.520 --> 0:06:35.400 ship building. Why is America left out of the discussion? 0:06:36.480 --> 0:06:39.760 Huh, that's that's a very interesting question. And it goes 0:06:39.839 --> 0:06:42.280 back to I think that what everybody knows that it 0:06:42.320 --> 0:06:47.479 is cheaper and more efficient to build it abroad or 0:06:47.560 --> 0:06:49.960 to stop it abroad. I mean, this is something that 0:06:50.000 --> 0:06:54.119 has gone through you know, decades now, the US maritime business, 0:06:54.160 --> 0:06:56.680 if you go back one hundred and hundred years, was thriving. 0:06:57.160 --> 0:06:59.599 But this has changed over the years and right now 0:06:59.640 --> 0:07:04.280 basically Asia and you know, some European countries are dominating 0:07:04.400 --> 0:07:08.599 the global shipping space. You know, it has to do 0:07:08.640 --> 0:07:10.560 with cost. It has to do with the cost of 0:07:10.600 --> 0:07:12.160 building a ship. I mean, you can build a ship 0:07:12.160 --> 0:07:14.280 in the US, but it's gonna cost you three times 0:07:14.320 --> 0:07:18.160 more because of like the protectionism that the shipping industry 0:07:18.200 --> 0:07:19.240 is enjoying the US. 0:07:19.720 --> 0:07:22.960 So you know, that's that's the main reason for. 0:07:23.000 --> 0:07:26.480 US just thirty seconds left, John, totally unfair question. But 0:07:26.560 --> 0:07:28.880 you're I mean, you're an act former exa analyst at 0:07:28.880 --> 0:07:31.400 City Group. It was used to it. John, When does 0:07:31.440 --> 0:07:34.080 the Baltimore Harbor open up again? And you're just guests 0:07:34.080 --> 0:07:37.480 here in the moments of this tragedy, when would you 0:07:37.560 --> 0:07:41.720 see free sailing down the river towards the Chesapeake Bay again? 0:07:44.240 --> 0:07:46.280 I would say not this year. If I was taken, 0:07:46.800 --> 0:07:47.720 I would take a while. 0:07:47.840 --> 0:07:50.559 Yes here, John, thank you so much on short notice. 0:07:50.560 --> 0:07:54.000 Thanks to our team, Eric Mulane, everybody forgetting just such 0:07:54.000 --> 0:07:58.360 an authority. John carsonis with with Breakwave Advisors here with 0:07:58.440 --> 0:08:12.760 some real pro perspective there. I'm this tragedy joining us 0:08:12.800 --> 0:08:17.400 in the Peterson Institute. Adam Posen here on the state, Adam, 0:08:17.440 --> 0:08:20.120 I love the beginning of the interview with Robert Armstrong 0:08:20.840 --> 0:08:23.200 and you say something that's on the edge of Robert 0:08:23.240 --> 0:08:28.880 Taylor out of Chicago, Richard Taylor, excuse me, and that 0:08:28.960 --> 0:08:33.400 you say you underestimated the resiliency of the people of 0:08:33.440 --> 0:08:38.840 the American and global economy. Discuss how you fold a character, 0:08:39.120 --> 0:08:42.760 a culture, a fabric of people into economics. 0:08:43.880 --> 0:08:46.360 Thank you Tom for reading and having me back. It's 0:08:46.400 --> 0:08:48.959 great to be with you on this, and I'm grateful 0:08:48.960 --> 0:08:52.680 of Robert and the Ft for taking me through all that. 0:08:53.760 --> 0:08:58.000 I think what we have to think about is going 0:08:58.040 --> 0:09:03.000 into the pandemic. There was reason for fear. We didn't 0:09:03.040 --> 0:09:05.320 know what was going to happen, and we have in 0:09:05.400 --> 0:09:10.360 the US, in particular this enormous spike in unemployment, and rightly, 0:09:10.600 --> 0:09:13.720 the FED and first the Trump and then the Biden 0:09:13.720 --> 0:09:18.200 administration started providing some social benefits, some healthcare, all things 0:09:18.200 --> 0:09:22.200 I supported. But what was amazing and became evident within 0:09:22.240 --> 0:09:27.480 the first few months was that people adapted. They set 0:09:27.559 --> 0:09:31.880 up new businesses, they moved to new jobs, they arranged care. 0:09:32.400 --> 0:09:34.600 That doesn't mean we should leave them to that. It's 0:09:35.000 --> 0:09:39.840 better that we didn't. But we as economists, and particularly 0:09:40.080 --> 0:09:42.680 people who are on the progressive side, where I sort 0:09:42.720 --> 0:09:46.880 of am. You know, we understandably worry a lot about 0:09:46.920 --> 0:09:51.240 people buffeted by large shocks that they have no fault 0:09:51.320 --> 0:09:54.559 in and they can't control. But what I think COVID 0:09:54.600 --> 0:09:59.000 showed us is people's ability to adapt to these shocks 0:09:59.559 --> 0:10:02.560 is much much bigger than we worried about, and that 0:10:02.640 --> 0:10:06.640 leads into all kinds of positive though non intended labor 0:10:06.679 --> 0:10:10.000 market changes in the US that I think came out 0:10:10.040 --> 0:10:11.079 of this process. 0:10:11.480 --> 0:10:13.880 One of the things, Adam, I think folks are concerned 0:10:13.920 --> 0:10:17.040 about is the economic divide in this country may have 0:10:17.080 --> 0:10:22.120 been even exacerbated from even prior levels by this pandemic. 0:10:22.640 --> 0:10:25.040 Just simply, you know, it could be as simple as 0:10:25.120 --> 0:10:27.240 some people can afford to work from home, some jobs 0:10:27.240 --> 0:10:29.880 you can't do that. How big of a concern is 0:10:29.880 --> 0:10:30.240 that for you? 0:10:31.400 --> 0:10:34.480 I mean, Paul, you're absolutely right, and I mean it 0:10:34.600 --> 0:10:37.680 doesn't get much more basic and important than what you 0:10:37.800 --> 0:10:40.760 said that people who have different levels of income, different 0:10:40.840 --> 0:10:46.240 levels well, particularly in the US, have different vulnerabilities. Nonetheless, 0:10:47.160 --> 0:10:50.559 it's more about, let's call it, the health gradient than 0:10:50.600 --> 0:10:54.199 the economic gradient. Over the last few years, so what 0:10:54.240 --> 0:10:57.360 we've seen is people who didn't have good healthcare, people 0:10:57.360 --> 0:11:02.440 who had pre existing conditions, which is associated with socioeconomic status, 0:11:02.920 --> 0:11:06.839 people who had less access to medicine, and people unfortunately, 0:11:06.920 --> 0:11:10.080 who were less educated and more willing to believe lies 0:11:10.160 --> 0:11:14.400 and fears about vaccinations. They had much worse health outcomes, 0:11:14.559 --> 0:11:18.040 much higher mortality and morbidity, as they say. But on 0:11:18.080 --> 0:11:21.080 the economics, what we've seen for the last few years 0:11:21.400 --> 0:11:24.880 is we've actually seen a closing of the income inequality. 0:11:24.920 --> 0:11:28.640 We've seen much more growth in real income for the 0:11:28.720 --> 0:11:32.400 lower end of the income distribution than for the higher end. 0:11:32.559 --> 0:11:35.000 And again I don't think I certainly didn't. I don't 0:11:35.040 --> 0:11:37.360 think anybody else was expecting that going in. 0:11:38.120 --> 0:11:41.439 When you look at adamire running out of time here 0:11:41.440 --> 0:11:43.600 where the news flow out of Baltimore this morning. I 0:11:43.640 --> 0:11:46.559 want to get you back really soon here on more 0:11:46.679 --> 0:11:50.520 Adam posting economics. But just as a general statement, do 0:11:50.559 --> 0:11:53.440 you buy the new productivity and is it just simply 0:11:53.520 --> 0:11:57.760 total factor productivity the oddities of technology over on the 0:11:57.840 --> 0:11:59.280 right side of the equation. 0:12:00.480 --> 0:12:04.120 Tom, I am reluctantly a productivity bulk. I think it's 0:12:04.160 --> 0:12:06.800 a productivity two step. The first is what we've seen 0:12:06.840 --> 0:12:09.360 for the last year and are seeing still, is this 0:12:09.480 --> 0:12:13.839 labor market transition where millions of lower income workers we're 0:12:13.840 --> 0:12:17.040 more willing to take risks and have more of a 0:12:17.080 --> 0:12:19.800 sense of backstop, and are moving on large numbers to 0:12:19.920 --> 0:12:23.080 bigger employers and becoming more productive. And I think that's 0:12:23.120 --> 0:12:25.680 what we're benefiting from. I think we're at the start 0:12:25.920 --> 0:12:30.000 of a boom created by generative AI. We've had many 0:12:30.040 --> 0:12:34.160 guests I know you've been talking about this way early. Tom. 0:12:34.440 --> 0:12:36.120 We don't know when that's going to hit. We don't 0:12:36.160 --> 0:12:38.240 know how big it's going to hit, but it's pretty 0:12:38.240 --> 0:12:39.120 certain it's coming. 0:12:39.679 --> 0:12:41.840 Adam, thank you so much. Way too short of visit. 0:12:41.880 --> 0:12:46.120 We'll have doctor Poson on again here more than soon. 0:12:46.280 --> 0:12:48.160 It's tough to get him, he's busy, but we'll try 0:12:48.200 --> 0:12:51.960 to get him out here with a news flow today 0:12:54.360 --> 0:12:57.640 in our studios. Now, as someone who knows we rip. 0:12:57.600 --> 0:13:00.920 Up the script regularly, we can do this with Peter Sheer, 0:13:01.600 --> 0:13:06.319 Academy Securities, Bloomberg Newspeter moments ago reporting I'm going to 0:13:06.360 --> 0:13:09.360 read it verbatim because I really have not dived into 0:13:09.400 --> 0:13:09.720 a link. 0:13:09.800 --> 0:13:14.360 They article. Apple iPhone shipments in China fell about thirty 0:13:14.360 --> 0:13:18.319 three percent in February from a year earlier. This according 0:13:18.360 --> 0:13:21.480 to official data. I guess it's part of the China 0:13:21.520 --> 0:13:26.439 mix here, which you are expert on the export import 0:13:26.559 --> 0:13:31.160 of America to China, from China to America. Is it 0:13:31.200 --> 0:13:33.600 anything like we knew or is it a whole new world? 0:13:33.640 --> 0:13:34.160 After all? 0:13:34.480 --> 0:13:36.200 I think it's a very new world, and I think 0:13:36.360 --> 0:13:39.400 people are a little bit dismissive and saying, well, sales right, now, 0:13:39.440 --> 0:13:42.160 for some companies in China are slower because the Chinese 0:13:42.200 --> 0:13:44.719 economy is slowing. Yes, that is true, but I think 0:13:44.760 --> 0:13:47.320 that's far more than that. What we see China doing 0:13:47.920 --> 0:13:51.800 is repressing sales of Western brands in China, whether they're 0:13:51.800 --> 0:13:54.880 telling certain agencies that they can't use the sorts of phones, 0:13:55.040 --> 0:13:57.600 whether they're putting outright bands. So the one thing they're 0:13:57.600 --> 0:14:00.160 trying to do is suppress sales of Western brands in 0:14:00.240 --> 0:14:03.320 China to elevate Chinese sales. And I think they're also 0:14:03.360 --> 0:14:06.000 trying to do that globally. They're pushing and emerging markets. 0:14:06.200 --> 0:14:09.160 They have companies like Shine and Timu who are really 0:14:09.200 --> 0:14:13.280 aggressively competing on price with US brands, And I think 0:14:13.320 --> 0:14:15.480 people are being a little bit too dismissive and saying, oh, 0:14:15.520 --> 0:14:17.760 this is just weakness in China. I think this is 0:14:17.760 --> 0:14:20.720 an attempt by China to replace our brands with their 0:14:20.760 --> 0:14:24.000 brands domestically and pushing globally, which will not be good 0:14:24.040 --> 0:14:25.480 for valuations of US docs. 0:14:25.800 --> 0:14:27.760 From your perspective, I'm looking at your research here. What 0:14:27.840 --> 0:14:32.280 is the difference between made in China versus made by China. 0:14:32.360 --> 0:14:36.480 So traditionally, right, we took western companies took our products, 0:14:36.640 --> 0:14:38.880 made them in China, and then we took and tried 0:14:38.880 --> 0:14:41.800 to sell those products globally, so they were really our products, 0:14:42.080 --> 0:14:44.360 but they happen to be made in China. So to me, 0:14:44.480 --> 0:14:48.720 the difference is China's having difficulty attracting people to manufacture 0:14:48.720 --> 0:14:50.840 in there, so if they're going to do manufacturing, they 0:14:50.840 --> 0:14:53.680 have to manufacture their own brands and sell there. So 0:14:53.680 --> 0:14:55.280 that's why I think it's more of a made by 0:14:55.400 --> 0:14:57.720 China because you're going to start seeing byd much more 0:14:57.760 --> 0:15:00.760 frequently Huawei, these companies you never heard of, whether it's 0:15:00.760 --> 0:15:04.080 through Shine or Timo Timu sorry, And I think that's 0:15:04.080 --> 0:15:05.960 why I'm calling it made by China because they've been 0:15:05.960 --> 0:15:08.120 making all the goods so long time, but it was 0:15:08.200 --> 0:15:10.840 largely them making our goods. I think they're now more 0:15:10.920 --> 0:15:13.800 aggressively trying to develop their own brands sell those, and 0:15:13.840 --> 0:15:16.120 that will lead into market share. It will cut profit 0:15:16.200 --> 0:15:17.600 because they are going to compete on price. 0:15:17.960 --> 0:15:20.800 So you know, I think about these companies, I mean 0:15:20.800 --> 0:15:23.120 tim Cook, I think as we speak is in China, 0:15:23.400 --> 0:15:29.119 we see Western CEOs making that seemingly weekly monthly pilgrimage 0:15:29.200 --> 0:15:32.440 to China, Yet we do in fact, appear to have 0:15:32.520 --> 0:15:36.920 some type of technological cold war between China and the West. 0:15:38.040 --> 0:15:38.800 What does Apple do? 0:15:38.920 --> 0:15:40.720 What does Tesla do? I mean some of these companies 0:15:40.760 --> 0:15:42.760 are really intertwined with China. 0:15:42.920 --> 0:15:45.200 Yeah, and so at Academy Securities, as Tom knows, we've 0:15:45.200 --> 0:15:48.320 got eighteen retired generals and admirals who service our Geopolitical 0:15:48.320 --> 0:15:51.640 Intelligence Group. I would say I'm seeing a disconnect where 0:15:51.680 --> 0:15:53.800 a lot of corporations are still trying to figure out, Okay, 0:15:53.960 --> 0:15:55.600 how do we work with China? How do we sell 0:15:55.600 --> 0:15:56.080 into China? 0:15:56.120 --> 0:15:56.240 Right? 0:15:56.240 --> 0:15:59.480 That's still the brand and everything that we're hearing At 0:15:59.480 --> 0:16:02.480 a national security level, it is all about China. It 0:16:02.520 --> 0:16:05.200 is completely bipartisan, It doesn't matter which party the people 0:16:05.280 --> 0:16:09.080 are in charge of national security. And SISO, which puts 0:16:09.080 --> 0:16:13.640 out a lot of bulletins on cyber warfare and cyber attacks, 0:16:13.760 --> 0:16:15.840 they came out with, you know, really a big warning 0:16:15.880 --> 0:16:19.600 on this typhoon volt which they part clearly label as 0:16:19.640 --> 0:16:23.080 the People Republic of China's Communist Party. Their hackers working 0:16:23.080 --> 0:16:26.760 on their behalf trying to infiltrate US infrastructure. So this 0:16:26.840 --> 0:16:28.520 is not going to get better. This is going to 0:16:28.520 --> 0:16:30.680 get worse. As these you know you see an entity 0:16:30.760 --> 0:16:32.720 like that very willing to public a common and I 0:16:32.800 --> 0:16:33.840 just say state actors. 0:16:34.080 --> 0:16:36.400 So you know, I've never asked this question before. There's 0:16:36.440 --> 0:16:39.600 always a firse what does it mean for Nvidia? And 0:16:40.000 --> 0:16:43.600 I just all of our audiences glued into growth stocks 0:16:43.680 --> 0:16:48.320 quality Lizzie Saunders off on yesterday with Schwab talking about quality. 0:16:48.680 --> 0:16:52.040 Are you saying exit the glorified stocks of the moment? 0:16:52.280 --> 0:16:54.520 You know, I do think some of we may be 0:16:54.640 --> 0:16:57.800 peak AI in this particular cycle where you know, I 0:16:57.840 --> 0:17:00.880 was mentioning earlier that all of a sudden brushes now 0:17:00.920 --> 0:17:03.120 have AI components or something like that. So I think 0:17:03.280 --> 0:17:06.040 everyone's kind of latching onto this. We've got one of 0:17:06.080 --> 0:17:08.720 their generals who's been very good helps advise DC on 0:17:09.000 --> 0:17:12.880 AI in particular, and we see AI developing into four worlds. 0:17:13.080 --> 0:17:14.720 We've got what's going on in the US, which we 0:17:14.760 --> 0:17:16.800 think is very healthy. It's growing, it's going to be 0:17:16.840 --> 0:17:18.879 a big part of our economy. It might be overdone. 0:17:19.320 --> 0:17:21.399 You've got Europe, where I think AI is going to 0:17:21.440 --> 0:17:24.600 stagnate because they have so much data restriction, so Europe's 0:17:24.640 --> 0:17:27.280 not going to be competitive in AI. You've got India, 0:17:27.280 --> 0:17:30.280 which is actually a rising place, and you're seeing places 0:17:30.280 --> 0:17:32.800 like Nvidia investors, so I think that'll be exciting. And 0:17:32.920 --> 0:17:34.800 China is marching to the beat of their own drum. 0:17:35.000 --> 0:17:38.560 They have a very strong AI plan. They're one directional. 0:17:38.600 --> 0:17:40.679 If they get it right, it could be dangerous if 0:17:40.680 --> 0:17:42.480 they get it wrong. We have hope, but that to me, 0:17:43.040 --> 0:17:46.639 there is no work for Nvidia or US companies in 0:17:46.720 --> 0:17:48.119 China that is getting separated. 0:17:48.240 --> 0:17:51.600 Peter, we have major, major breaking news. You can stay 0:17:51.640 --> 0:17:53.719 with us and take this in. I'm sure it'll fold 0:17:53.880 --> 0:18:08.600 into your report this morning. Peter, Chair Academy securitizers. With 0:18:08.800 --> 0:18:10.760 a difficult news flow, We're going to try to make 0:18:10.840 --> 0:18:13.840 light of it, and only Lisa Matteo can do that. 0:18:13.960 --> 0:18:16.639 You look at the front pages around the world. Lisa, 0:18:16.680 --> 0:18:19.040 were you bruised from my beard yesterday? We took a. 0:18:19.119 --> 0:18:22.200 Yes, I got a little mark right here, but I'm okay. 0:18:22.480 --> 0:18:23.280 I recovered yet. 0:18:23.359 --> 0:18:24.919 This is this is you like this. I went to 0:18:24.960 --> 0:18:27.879 the I went to the grower barber shop. This is 0:18:28.200 --> 0:18:30.959 is what I went to. They gave it. It was 0:18:31.040 --> 0:18:33.480 so difficult. They took a razor out with it. So 0:18:33.960 --> 0:18:36.080 it was so difficult. I had to shave twice. But 0:18:36.160 --> 0:18:38.520 thank you to the good people at the Grower of Barbershop. 0:18:38.600 --> 0:18:42.760 Really it was fantastic. Well, by the way the poll, 0:18:42.880 --> 0:18:44.080 a lot of people wanted you to. 0:18:44.040 --> 0:18:46.919 Lose it, so that it was a mixed effort. But 0:18:47.480 --> 0:18:50.240 the tilt is that both that Bill and missus Keane 0:18:50.240 --> 0:18:51.359 wanted me to keep the beard. 0:18:51.440 --> 0:18:53.840 O oay, No, I can't do it. 0:18:54.080 --> 0:18:58.560 You get a call from the grower of Barbershop, shave 0:18:58.680 --> 0:19:01.720 that you're no Matt Miller shave that off. What do 0:19:01.760 --> 0:19:02.639 you got, Lisa? 0:19:02.720 --> 0:19:05.880 All Right, kids in Florida under the age of fourteen, 0:19:05.920 --> 0:19:08.359 they're a little upset. They will no longer be able 0:19:08.359 --> 0:19:11.880 to have a social media this went through. Yeah, Florida 0:19:11.920 --> 0:19:14.240 the first state to do this. It's apps like TikTok 0:19:14.280 --> 0:19:17.720 and Snapchat. Fourteen and fifteen year olds though, they are 0:19:17.720 --> 0:19:19.040 allowed to do it, but they will have to get 0:19:19.040 --> 0:19:22.000 their parents' permission in order to do that. But under fourteen, so. 0:19:22.040 --> 0:19:24.240 Are the Florida police going to go in? 0:19:24.520 --> 0:19:24.600 How? 0:19:25.119 --> 0:19:27.399 This is exactly that is the question. 0:19:27.680 --> 0:19:30.960 How do you just the world tiktoking from? I mean 0:19:31.000 --> 0:19:32.200 that's like Nirvana. 0:19:32.320 --> 0:19:35.240 Yes, so they're gonna have to go back TikTok, Snapchat 0:19:35.280 --> 0:19:36.480 and see how old. 0:19:36.480 --> 0:19:39.040 Some of these kids are who's got it's going. 0:19:39.000 --> 0:19:43.560 To be it's gonna be along the companies TikTok, Snapchat, 0:19:43.600 --> 0:19:45.000 all these companies are gonna have to go back and 0:19:45.040 --> 0:19:47.800 possibly delete some. But the question is if it's going 0:19:47.880 --> 0:19:49.720 to happen. I mean, this is going to face you know, 0:19:49.840 --> 0:19:53.040 backlash and constitutional challenges. 0:19:52.560 --> 0:19:53.560 And and all that. 0:19:53.560 --> 0:19:56.359 That's the realities of the marketplace. You know whatever, the 0:19:56.440 --> 0:19:58.000 parent sounds like a parent. 0:19:58.280 --> 0:20:00.600 You know, some kids down there on group with somebody 0:20:00.640 --> 0:20:03.560 from Bloomberg to see mcgloone, who's you know, they're on 0:20:03.640 --> 0:20:06.040 the porch of the Betsy on South Beach and the 0:20:06.119 --> 0:20:09.840 kids TikTok and from the Betsy and what the police 0:20:09.880 --> 0:20:10.440 show up. 0:20:11.160 --> 0:20:14.280 It's it's gonna be a long road. Let's just put 0:20:14.320 --> 0:20:16.920 it that way. It's the first step. Let's just put 0:20:16.920 --> 0:20:19.800 it that way. The first step. Okay, So we're going 0:20:19.840 --> 0:20:22.240 to the Wall Street Journal. You know how Mark Zuckerberg's known. 0:20:22.480 --> 0:20:24.520 He was known for wearing the hoodies and the shower 0:20:24.560 --> 0:20:27.840 slides and that whole casual kind of look. Well, maybe 0:20:27.880 --> 0:20:31.200 he's doing a little middle aged makeover. It's a new 0:20:31.320 --> 0:20:32.560 Zuckerberg he's wearing. 0:20:33.119 --> 0:20:34.879 He's been seen wearing suits. 0:20:34.480 --> 0:20:37.440 And a shirllink jacket, you know, different cardigans. 0:20:37.440 --> 0:20:38.840 So he's stepping up. 0:20:39.359 --> 0:20:41.680 The hoodies are out, he's stepping up his look. I 0:20:41.680 --> 0:20:43.960 don't know if it's a middle aged thing. But there's 0:20:44.000 --> 0:20:46.640 also you know, scrutiny for the industry, the tech industry. 0:20:46.760 --> 0:20:48.760 Well he's sharpening up the image. 0:20:48.880 --> 0:20:51.480 As according to rich go on the Bloomberg terminal, the 0:20:51.480 --> 0:20:53.960 fourth wealthiest person on the planet one hundred and seventy 0:20:53.960 --> 0:20:56.679 eight and a half billion dollars. So he can afford 0:20:56.680 --> 0:20:57.320 to upgrade. 0:20:57.640 --> 0:20:59.399 He can afford a suit, or you can. 0:20:59.280 --> 0:21:03.399 Get a hoodie from you or Selene or you know. 0:21:03.480 --> 0:21:05.159 I mean, can you imagine. I don't even know what 0:21:05.160 --> 0:21:06.480 they caused, but can you imagine? 0:21:06.520 --> 0:21:08.760 Oh ridiculous and I oh, by the way, in terms 0:21:08.760 --> 0:21:12.360 of the increase year to date in the net worth 0:21:12.440 --> 0:21:15.639 on Richiko, he is number one, up fifty billion dollars 0:21:15.640 --> 0:21:16.640 this year. It's been a good year. 0:21:16.640 --> 0:21:18.560 So I'm not going to mention the mutual fund, it 0:21:18.600 --> 0:21:21.600 doesn't matter. But the number one holding is met a Facebook, 0:21:22.200 --> 0:21:24.440