WEBVTT - Single Best Idea with Tom Keene: Bob Hormats & Ian Lyngen

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

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<v Speaker 2>We said, somewhere halfway into this Friday and hear your

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<v Speaker 2>single best idea. We said, okay, there's unknowns, and Muhammad

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<v Speaker 2>Alarian says there's unknown unknowns or maybe we're to the

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<v Speaker 2>point where there's unknown unknown unknowns and the only solution

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<v Speaker 2>is to attempt to listen to smart people. When we

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<v Speaker 2>were so fortunate this week, Eric and Wan in the

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<v Speaker 2>whole room. The interns just just superb. The interns Fordom really,

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<v Speaker 2>I think they're they're they're like almost you know better. Anyways,

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<v Speaker 2>we had a great set of conversations. Robert Hormeetz joined us.

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<v Speaker 2>He is definitive. You know him from Goldman Sachs and

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<v Speaker 2>all of his work with Kissingers. What you don't know

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<v Speaker 2>is a young Turk out of Tufts. He assisted Kissinger

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<v Speaker 2>and Winston Lord in all of the development of our

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<v Speaker 2>economic philosophy with China. What an honor to speak to

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<v Speaker 2>Ambassador Hormats today. Here are Hormats, I'm the leader of China.

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<v Speaker 1>He's a very methodical person and he does sort of

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<v Speaker 1>venerate Mao, but he also realizes Mao had a number

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<v Speaker 1>of issues that made him controversial, but there are two

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<v Speaker 1>parts of the Mau background that are extremely important to understand.

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<v Speaker 1>Mao made one point that we've been bullied by the

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<v Speaker 1>foreigners over the last one hundred years, and we're not

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<v Speaker 1>going to be bullied again, and she is very much

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<v Speaker 1>of the view that that must be a critical part

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<v Speaker 1>of China's strategy to be invulnerable to bullying or pressure

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<v Speaker 1>or leveraged by the foreigners. The second is that Mao

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<v Speaker 1>understood and she understands that the fall of the Soviet

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<v Speaker 1>Union was in part because they did not have a

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<v Speaker 1>lot of trading partners. They were confined to very few

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<v Speaker 1>products that they produced and a very few countries to

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<v Speaker 1>sell them to. And he she Jinpain was going to

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<v Speaker 1>make sure that China had a broad range of trading

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<v Speaker 1>partners and had a very diversified economy and therefore could

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<v Speaker 1>not be leveraged by the United States or anyone else.

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<v Speaker 2>Robert Romance of Kissinger Associates, we hope to have him

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<v Speaker 2>on to give us perspective on the ARC. As this morning,

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<v Speaker 2>the Chinese announced that presidency will attend Washington in September.

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<v Speaker 2>On bonds. It was priced down and yield up and

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<v Speaker 2>there's no one better to talk to and Ian Lingen,

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<v Speaker 2>he is definitive at the Bank of Montreal with demo

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<v Speaker 2>capital markets. Ian Lingen on your ten year yield.

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<v Speaker 3>Well, I think that the world looks at ten year yields.

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<v Speaker 3>I look at the two year yield. There's nothing more

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<v Speaker 3>than reflection of near term monetary policy expectations. And so

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<v Speaker 3>anytime we're over four percent in this environment, that means

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<v Speaker 3>that we're really contemplating rate hikes, which I don't think

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<v Speaker 3>should be on the table. The long bond is more

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<v Speaker 3>of an inflation story, and as we see, five handle

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<v Speaker 3>on the thirty year is troubling for a lot of

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<v Speaker 3>different asset classes. So I do think that the shape

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<v Speaker 3>of the curve is going to be the story to

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<v Speaker 3>follow this year.

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<v Speaker 2>Ian Lincoln to be more capital Marcu, It's an extraordinary week.

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<v Speaker 2>We dive into next week in the hallmark clearly is

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<v Speaker 2>the twentieth the earnings, the revenues, the future for Nvidia

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<v Speaker 2>on podcasts, Audit, Apple and Spotify YouTube podcasts, single best

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<v Speaker 2>idea