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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg

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Speaker 1: Surveillance Podcast. Catch us live weekdays at seven am Eastern

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Speaker 1: on Apple car Play or Android Auto with the Bloomberg

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Speaker 1: Business App. Listen on demand wherever you get your podcasts,

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Speaker 1: or watch us live on YouTube.

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Speaker 2: This is well timed.

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Speaker 3: This is one of Paul Sweety's favorite, favorite favorite guests.

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Speaker 3: He's like the guy in the fixed income market. If

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Speaker 3: there were train reels, Sir Blackrock, Paul, this is the

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Speaker 3: guy with his ear on the train reel, trying to

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Speaker 3: figure out what's coming down the pike.

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Speaker 2: Why don't you bring in Russ here.

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Speaker 4: With absolutely Russ Brownback Joints is here. He's Deputy CIO

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Speaker 4: of Global Fixingcome at little shop called Blackrock. I think

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Speaker 4: they run a couple of dollars over there. Russ talk

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Speaker 4: to us about the fixed income business.

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Speaker 5: Here.

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Speaker 4: You guys have had a good twenty twenty five. I

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Speaker 4: see a lot of green on the screenline. I look

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Speaker 4: across the fixed income total return page on the Bloomberg terminal.

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Speaker 2: Credit's been rewarded this year.

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Speaker 4: I'm looking at high yield, high single digit returns, leverage loans,

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Speaker 4: same type of thing. Mortgage backed securities, all that stuff.

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Speaker 4: How are you guys thinking about fixed income market? It's

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Speaker 4: the most exciting environment we've ever seen. Our team has

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Speaker 4: been at it for a really long time.

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Speaker 6: And you know, this is an income harvesting regime fixed income,

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Speaker 6: and you know, think about all the different dynamics over

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Speaker 6: the course of this year, so much uncertainty. Markets have

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Speaker 6: had a series of spasms that create opportunities to tactically

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Speaker 6: trade around that. When you put it all together with

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Speaker 6: you know, pretty good overall systemic credit quality and build

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Speaker 6: a diversified portfolio, get a little bit of lyft from

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Speaker 6: interest rates that have come down over the course of

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Speaker 6: this year. The aggregate index is on pace for equity

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Speaker 6: like returns this year. So it's been the best year

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Speaker 6: for fixed income in a decade.

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Speaker 2: This is a single.

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Speaker 3: Great unspoken of the last eighteen months. Is bondser in

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Speaker 3: a bull market?

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Speaker 2: Yeah? Nobody knows it.

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Speaker 4: Nope, And it's think back to the twenty twenty two

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Speaker 4: the tough year that was for everybody, including a fixed

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Speaker 4: income market. Here as we look ahead here, what do

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Speaker 4: we need for the fixed income market to continue to perform?

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Speaker 4: Is it the Fed aggressively cutting rates is it?

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Speaker 2: Is it just corporate performance remaining strong? What are some

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Speaker 2: of the drivers?

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Speaker 6: Yeah, So, you know, I think a very large catalyst

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Speaker 6: this coming year is going to be as that policy

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Speaker 6: rate comes down. We think the Fed will deliver what's

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Speaker 6: priced into markets, which is down close to neutral by

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Speaker 6: the third or fourth quarter of next year. And then

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Speaker 6: you start to think about those trillions of dollars sitting

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Speaker 6: in cash today, and cash has been a very high

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Speaker 6: sharp ratio allocation here too, four for the last you know,

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Speaker 6: six or eight quarters. I think that money will begin

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Speaker 6: to migrate into some longer tenors as some of those

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Speaker 6: investors look to lock in this opportunity set. And we

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Speaker 6: don't see a lot of overall duration beta move in

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Speaker 6: this coming year, so again it's going to be about

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Speaker 6: harvesting that income.

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Speaker 3: What in God's name what did you say? A duration

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Speaker 3: beta move?

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Speaker 2: So another way, we're a great band.

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Speaker 3: That did evers like in Palmer like, no one duration

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Speaker 3: beta move?

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Speaker 2: What is that? So we think the yield curve is

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Speaker 2: pretty close to an equilibrium today.

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Speaker 6: So the front end is priced to where it thinks

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Speaker 6: the FED might be delivering the policy rate. That's equilibrium.

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Speaker 6: The back end is gravitating towards nominal GDP growth outcomes

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Speaker 6: that's about in fair value today. So in other words,

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Speaker 6: we don't see a big directional move in rates over

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Speaker 6: the next year. So instead it's about finding that optimal

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Speaker 6: income expression today and just holding it over the course

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Speaker 6: of the year.

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Speaker 4: So talk to us about the credit profile out there

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Speaker 4: in the marketplace today. We've had some concerning issues in

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Speaker 4: a private market that kind of people starting to wonder,

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Speaker 4: is that representative us some more broader credit concerns out

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Speaker 4: there in the marketplace?

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Speaker 2: How do you guys think about that?

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Speaker 6: So, overall systemic credit quality is very very good. If

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Speaker 6: you look at the financial earnings in the third quarter

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Speaker 6: and look at the credit quality, so you saw for

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Speaker 6: all three quarters of this year sequential movement and delinquencies,

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Speaker 6: charge offs for the major banks. Even you know, if

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Speaker 6: you look at the largest auto lenders in the country,

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Speaker 6: you've seen similar improvement and credit quality there are sort

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Speaker 6: of the economy is very dispersed in terms of outcomes.

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Speaker 6: You've got pockets of the economy that are suffering from

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Speaker 6: onerously high borrowing costs today, and so you do have

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Speaker 6: dispersion underneath that. Overall systemic quality so that's that's an

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Speaker 6: awesome environment for picking individual credits, picking winners, avoiding losers.

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Speaker 2: So the dispersion is a great way to find alpha.

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Speaker 3: Chris brownback with us with black Rock and we continue

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Speaker 3: this morning. I'm trying to find yield here. So the

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Speaker 3: basic idea is to clip a coupon within strategic income.

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Speaker 3: You guys are killing it here with good relative performance.

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Speaker 3: If it's a bull market in being strategic, what's the

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Speaker 3: mystery strategic out there?

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Speaker 2: Forward?

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Speaker 3: What are you thinking about now to get to the

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Speaker 3: fourth of July next year?

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Speaker 6: So you know, I think when you think about the

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Speaker 6: world we're entering going forward, animal spirits are really reviving,

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Speaker 6: both in terms of the Capex supercycle that's underway as

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Speaker 6: well as we're anticipating a great deal of an uptick

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Speaker 6: in M and A activity. Lots of that will get

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Speaker 6: financed in the public credit market, some of it in

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Speaker 6: the private credit markets. That origination is an amazing opportunity.

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Speaker 6: So you guys on the show over the past few

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Speaker 6: days have talked about the burst of supply we've had

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Speaker 6: recently related to Capex. When you take the net supply,

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Speaker 6: they'll use the investment grade index as an example, when

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Speaker 6: you subtract gross issuance and you take away the amount

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Speaker 6: that's maturing the same year, and then the coupon that

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Speaker 6: gets thrown off that needs to be reinvested. We've only

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Speaker 6: had one percent of the total market cap of the

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Speaker 6: Investment Graded Index in net issuance.

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Speaker 2: Compare that to the treasury.

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Speaker 6: Market, where they're borrowing the equivalent of ten percent every

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Speaker 6: year because of deficits. And so we would welcome an

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Speaker 6: increase in supply, particularly if it comes at a concess

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Speaker 6: in markets that's a great opportunity to harvest someone. You're

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Speaker 6: the first phone if I'm on the desk at Goldman

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Speaker 6: sachhal More and say, I'm calling you guys first, right, Well,

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Speaker 6: we think origination is an alpha source, both in the

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Speaker 6: public markets and increasingly in the private markets where we're

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Speaker 6: seeing my lateral opportunities, my.

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Speaker 2: Whole guilt of these guys, there's like twenty people. They

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Speaker 2: make like we got to continue this. Don't be a stranger.

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Speaker 3: Rus Brownback with his best CIO Global fixed Income at Blackground.

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Speaker 2: Stay with us.

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Speaker 3: More from Bloomberg Surveillance coming up after this.

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Speaker 1: You're listening to the Bloomberg Surveillance podcast Catch US Live

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Speaker 1: weekday afternoons from seven to ten am Eastern Listen on

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Speaker 1: Applecarplay and Android Auto with the Bloomberg Business app, or

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Speaker 1: watch US Live on YouTube.

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Speaker 3: It's the most intelligent note on institutional tension I have

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Speaker 3: seen in ages. Amy Silverman joins this definitive and derivative

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Speaker 3: strategy RBC Capital Markets. Okay, you and I aren't going

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Speaker 3: to do a quantitative finance Imperial College walkthrough here. We're

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Speaker 3: not going to go all aw singte leb. But what

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Speaker 3: we are going to do is explain institutions. I can't

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Speaker 3: say the phrase, it's not appropriate for radio. They're scared,

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Speaker 3: you know what, And the answer is they're hedging, but

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Speaker 3: they're hiding it. They're they're afraid, they're hedging their risks.

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Speaker 3: But it's shadow hedging discuss.

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Speaker 7: So you know, I had a client say to me

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Speaker 7: the other day, Tom that they have never seen so

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Speaker 7: many fully invested bears, himself included. And you know when

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Speaker 7: I talk about shadow hedging, essentially, what I mean is

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Speaker 7: I think there is going to be a lot of

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Speaker 7: demand for hedging when we make that first drawdown. The

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Speaker 7: reason you don't see it in the market right now

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Speaker 7: is because it's not there. But you know, one of

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Speaker 7: my jobs is to walk around and talk to different

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Speaker 7: hedge funds and portfolio managers, and I can tell you

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Speaker 7: they want that downside conformation first, and a lot of

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Speaker 7: them will deploy cocktail conversation.

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Speaker 3: How do you define draw down off SBX? Is it

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Speaker 3: a correction? Is it negative five percent? Is it a

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Speaker 3: bear market? What's draw down for you looking at a

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Speaker 3: convenient average?

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Speaker 2: Yeah, it's a great question.

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Speaker 7: You know, in derivatives world, we measure everything in standard deviations,

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Speaker 7: but I think to keep it simple, you know, something

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Speaker 7: that's on the order of seven to ten percent draw down.

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Speaker 7: You know, my friend Laurie calls it a garden variety

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Speaker 7: draw down in her tears of fear, But I think

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Speaker 7: they're looking for that. And then if they see momentum

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Speaker 7: factor confirmation there on the downside, which we haven't all year,

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Speaker 7: we haven't since COVID, then I think you do have

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Speaker 7: a cohort who is ready to step in and hedge more.

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Speaker 7: But remember, they've been kind of whiplashed by this retail,

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Speaker 7: by the phenomenon that's been so strong, and that's why

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Speaker 7: I think they've kept it in the shadows this time.

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Speaker 7: And not in the light of day.

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Speaker 4: I love your notes, They're so helpful here. The one

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Speaker 4: that jumps out of me is two huge risks from

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Speaker 4: have been one right tail I e. That you risk

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Speaker 4: that you aren't participating in upcrashes.

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Speaker 2: Haven't heard that term before. That's called crash, Yeah, crashes,

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Speaker 2: I'm going to use that.

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Speaker 4: And two heavy concentration. We've heard that concentration risk in

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Speaker 4: the marketplace. Are they trying to hedge some of that

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Speaker 4: concentration risk out at all?

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Speaker 2: They're not.

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Speaker 7: I mean the way they're hedging it is there. They

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Speaker 7: end up quite concentrated, meaning they probably hold more in

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Speaker 7: video or more mag seven than they would like. You know,

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Speaker 7: that makes them the fully invested bear. But they're very

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Speaker 7: cognizant of the risks, you know, both of this kind

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Speaker 7: of circularity in AI. It makes them very anxious. They

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Speaker 7: just don't feel like they have an alternative, especially when

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Speaker 7: you have the other side sort of stepping in all

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Speaker 7: this time since April second and boeing the market. That's

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Speaker 7: why I think this downside confirmation factor becomes really critical.

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Speaker 4: One of the things that we're going to have to

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Speaker 4: deal with that you don't ordinarily deal with is we're

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Speaker 4: going to get a deluge of economic data if and

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Speaker 4: when the government opens soon, do your clients come to

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Speaker 4: you and say, I'm not I think that's some risk,

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Speaker 4: I think, or it might be opportunity. I don't know

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Speaker 4: how are they positioning for that, if at all.

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Speaker 7: So I think this is actually really interesting because one

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Speaker 7: kind of breakdown and relationship in options is typically volatilely

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Speaker 7: goes up when the market goes down. Right, there's this

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Speaker 7: spot down ball up phenomenon that sound essentially broken down.

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Speaker 7: Now what we're actually seeing is this idea of the upcrash,

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Speaker 7: so volatily actually can go up when the market goes up.

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Speaker 7: And if we get data that says, you know, there's

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Speaker 7: definitely going to be twenty five BIPs into summer, you

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Speaker 7: could get an up crash.

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Speaker 2: We're going nerd on youa. Amy was Silverman with this.

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Speaker 3: RBC Capital Market's chief nerd, Michael McGlone on deck here

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Speaker 3: in Miami. Okay, Amy, just for you. Mike from Belmont

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Speaker 3: called and said, Tom, do something in the terminal. Thank

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Speaker 3: you Mike for that pro tip. So I take SPX

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Speaker 3: and I go down two standard deviations the negative two

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Speaker 3: standard deviations off trend twenty week look back. I'm working

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Speaker 3: in weekly units, not daily units, because that's what pros do.

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Speaker 2: If I go down.

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Speaker 3: Ten point five oher, I finally get down to standard deviations,

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Speaker 3: that's the drawdown you're talking about.

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Speaker 7: Yeah, and again, you know most people characterize that as

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Speaker 7: a garden variety drawdown. One thing we like to do

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Speaker 7: is there's two metrics you can look upon Bloomberg sdex

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Speaker 7: and t DX. One measures a one standard deviation drawdown

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Speaker 7: and TDX actually measures a three standard divation drawdown. They're

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Speaker 7: both incredibly inexpensive right now, which tells you that hedging

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Speaker 7: isn't real yet. It's just shadow hedging.

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Speaker 2: It's a guest telling you can you teach youse daily.

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Speaker 4: On the blob comedy exactly? Sorry, So where's the opportunity?

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Speaker 4: Where's the risk at there in the marketplace for you?

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Speaker 4: Right now? When you talk to your clients, what are

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Speaker 4: you hearing?

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Speaker 2: Yeah?

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Speaker 7: You know, to me, one of the biggest risks is

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Speaker 7: just this component of correlation, which is something that you

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Speaker 7: know tends tends to increase when things go down sharply.

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Speaker 7: I think I think this is behind all the angst

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Speaker 7: you hear from institutional investors because a lot of them

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Speaker 7: live through GFC, A lot of them live through the

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Speaker 7: times when correlation goes up like a knife. And that's

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Speaker 7: why I think, you know these hedges was don't look

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Speaker 7: that expensive right now? That cover your tails is something

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Speaker 7: that's compelling to people, even though it's shadow hedging.

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Speaker 2: What's the fear?

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Speaker 3: I mean, your note is brilliant on how institutions are

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Speaker 3: not with retail in this bullmarket futures new high for

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Speaker 3: the day of twenty seven at the level here of

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Speaker 3: getting up near sixty nine one hundred Amy wo Silverman.

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Speaker 3: In nineteen eighty seven, there was an ugly day where

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Speaker 3: I learned how to spell portfolio insurance. Where's the portfolio

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Speaker 3: insurance of two twenty six?

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Speaker 7: You know, I think it's something simple like either NASTAC

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Speaker 7: or SMP, just just simple puts. And the reason I

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Speaker 7: say that is because a lot of what's been going

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Speaker 7: well is very concentrated, and it's also very self referential

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Speaker 7: because it is just the stock market wealth. And so

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Speaker 7: if you do lose the leg of the school of

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Speaker 7: retail because they look at their portfolios and it's going

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Speaker 7: down where they're trying to buy the dip, then I

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Speaker 7: think you could get into this kind of circul that

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Speaker 7: you're seeing in AI where they're like, wait a minute,

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Speaker 7: you know this isn't going to work for us, and

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Speaker 7: that's your correlation spike you need.

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Speaker 4: I'll bet if we have something more than a garden

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Speaker 4: variety draw down decline in the marketplace, do you think

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Speaker 4: the retail investors will be there at that point?

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Speaker 7: So I don't. I don't, And I'll tell you one

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Speaker 7: reason it's a lot of this cohort is generational, right,

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Speaker 7: and so when you think about the kind of market

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Speaker 7: they've seen, they've seen a twenty ten to now market

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Speaker 7: where you do buy the dip. It makes sense if

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Speaker 7: you get an extended run where you know volatility is

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Speaker 7: very high, very high volatile regime and continuous draw downs,

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Speaker 7: and you get that confirmation of that downside momentum factor.

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Speaker 7: I think that's what institutional investors are worried about.

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Speaker 2: Okay, we got to go here.

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Speaker 3: Mike mcloan's people just emailed and said he's got to

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Speaker 3: come on November twelfth. Okay, December twelfth, twenty twenty five.

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Speaker 3: There's no tour scheduled, So it's the Taylor Swift, the

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Speaker 3: Eras Tour, the final show moview on Disney Plus. How

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Speaker 3: big is the party at the Silverman House? You?

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Speaker 7: I actually don't even know about this one. Your daughter,

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Speaker 7: She's probably gonna shake her head that I didn't know this.

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Speaker 2: We'll have to do a view summertime. Well, it's a viewing.

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Speaker 2: I mean it's destination to you. Mike Kelln. Well that

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Speaker 2: too well for Disney Plus. Oh, I think that'd be good.

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Speaker 5: Amy was Silverman brilliant on shadow Heading Just I can't

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Speaker 5: say enough to stay with us. More from Bloomberg Surveillance

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Speaker 5: coming up after this.

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Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday

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Speaker 1: starting at seven am Eastern on Apple Corplay and Android

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Speaker 1: Auto with the Bloomberg Business app. You can also listen

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Speaker 1: live on Amazon Alexa from our flagship New York station,

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Speaker 1: Just Say Alexa Play Bloomberg eleven thirty Race.

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Speaker 3: Sharper with us Alizard asset manager. Lazard's just having a

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Speaker 3: great year. I mean, Peter, the place is pumped. I mean,

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Speaker 3: I see the Lazar everywhere.

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Speaker 2: We're playing to win. Well, you're you're.

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Speaker 3: Playing to win, But come on, or ISIX doing this

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Speaker 3: with a certain panache?

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Speaker 2: Has he been home like has he been in New

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Speaker 2: York one day in the last six months. It's a

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Speaker 2: great question.

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Speaker 8: I think that the context is intellectual curiosity, working with

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Speaker 8: our clients and partnering to drive industry.

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Speaker 3: For Global Wall Street. Now in the fervor of this

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Speaker 3: this boom that we're in. What's the Lazar distinction? As

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Speaker 3: you grind it out every day, there will so distinction.

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Speaker 2: It's fundamental, it's long term.

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Speaker 8: We represent and we're very fortunate to represent long term

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Speaker 8: assets pensioners. We're fundamental focusing on profitability and identifying great opportunities.

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Speaker 3: Very perfect security into the reality that Beijing and China

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Speaker 3: have an X access completely different than we do. They

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Speaker 3: China develops long term. You're hugely plus plus on China equities.

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Speaker 2: Link that into their GEO Tom. I think the context

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Speaker 2: of emerging markets is evolution.

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Speaker 8: We are moving beyond foundational basic emerging markets that's driving convergence.

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Speaker 2: China is at the forefront of that.

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Speaker 8: Historically it was about manufacturing exporting to the US consumer.

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Speaker 8: What you found is that they have really focused and

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Speaker 8: honed in on the future of technologies. We've seen that

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Speaker 8: in terms of ev penetration today in China, for example,

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Speaker 8: over fifty percent of new cars are ev You're seeing

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Speaker 8: that in terms of battery storage, see some of your

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Speaker 8: biotech areas. So you're seeing a focus on the next

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Speaker 8: generation of technologies. And the context is that emerging markets

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Speaker 8: is not just a convergence story. Parts of emerging markets

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Speaker 8: are driving the fourth industrialization. We're seeing that in Asia,

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Speaker 8: North Asia as well, Taiwan Korea, particularly around some of

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Speaker 8: the AI themes.

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Speaker 4: So for a while there, you know, my Asia, my

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Speaker 4: China proxy is Alibaba.

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Speaker 2: That's it. That's all I know.

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Speaker 4: And then it was doing so well for all the reasons.

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Speaker 4: We all understand that the government came in and put

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Speaker 4: the kaibash on a lot of the tech there, and

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Speaker 4: that was three or four years out in the desert.

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Speaker 4: Nobody could care about China. It's back, right, And why

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Speaker 4: is it back? Gets back because there's pragmatism in Beijing.

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Speaker 8: We need to bring back the private sector and engage

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Speaker 8: and develop that UH social contract with with with the youth.

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Speaker 8: I think it's also the fact that there's been a

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Speaker 8: lot of innovation. Deep Seek earlier this year highlighted UH

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Speaker 8: that China's is in this race. They're they're they're evolving

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Speaker 8: and the context of these are national champions that are

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Speaker 8: helping drive and evolve the economy.

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Speaker 2: This is too important.

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Speaker 3: Over the weekend, LVMH announces four new Tiffany's and Lewis

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Speaker 3: Viuten's and all that in Beijing. Great Lazard's telling me

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Speaker 3: that we have a g shift back towards Deng, back

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Speaker 3: towards some more capitalistic China.

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Speaker 2: Do you actually observe that, Atlizard?

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Speaker 8: So I think it's really important to understand your alignment

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Speaker 8: with Beijing and understand your alignment with the major companies.

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Speaker 2: In emerging markets.

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Speaker 8: You do tend to find that state owned enterprises are

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Speaker 8: majority control.

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Speaker 2: By by by the government.

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Speaker 8: I think the context here is that it's it's it's

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Speaker 8: not a monolithic story. You have to understand the nuance,

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Speaker 8: and the nuance is quite important. We spend a lot

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Speaker 8: of time understanding that dynamic with the major shareholders, what's

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Speaker 8: the vision of these businesses. But I do think the

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Speaker 8: context of the last couple of weeks is showing mister

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Speaker 8: Trump and she are speaking to each other. These are

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Speaker 8: two very important economies, and the context of emerging markets

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Speaker 8: more broadly is we just finished a lost decade for

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Speaker 8: the asset class and now, with emerging markets up nearly

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Speaker 8: thirty percent year to date, investor interests is starting to improve.

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Speaker 8: And it's not just about short termism in these assets.

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Speaker 8: We're seeing parts of this asset class are driving innovation.

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Speaker 8: There's the development of foundational opportunities. Think about India today,

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Speaker 8: for example, the middle class in India is the story.

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Speaker 2: Is just starting.

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Speaker 8: Per Cappit incomes there just started around two thousand, five

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Speaker 8: hundred dollars. You're seeing a shift occurring where people are traveling,

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Speaker 8: consumers are buying homes for the first time.

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Speaker 2: Think about Latin America.

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Speaker 8: Rates are so high today you haven't even seen credit cycle.

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Speaker 8: We're starting to see the beginnings of a credit cycle.

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Speaker 2: And through that.

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Speaker 8: Whole backdrop, I think that the level of maturity across

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Speaker 8: the emerging markets in terms of central bank monetary policy

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Speaker 8: has been quite orthodox. They learned their lessons from the

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Speaker 8: Taper tantrum back in twenty thirteen.

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Speaker 2: I know you have a big exposure.

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Speaker 4: To a little birding whishper in my ear just a

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Speaker 4: moment ago in China and in Asia talk to us

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Speaker 4: about India.

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Speaker 2: Though you just mentioned India.

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Speaker 4: I mean a lot of folks were telling me when

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Speaker 4: India when China was maybe maybe not investible, but people

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Speaker 4: were just down on China. People are saying, don't worry

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Speaker 4: about China, look to India. That is the next story here.

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Speaker 4: How do you guys think about that?

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Speaker 2: So long term, we believe in the India story.

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Speaker 8: I mean, as I mentioned, the economy has now hit

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Speaker 8: to around a little over three trillion two and a

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Speaker 8: half thousand per capita. Consumers are consuming for the first time,

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Speaker 8: people are buying homes for the first time.

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Speaker 2: You're just seeing that development.

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Speaker 8: I think from a national strategic context, India wants to

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Speaker 8: be in the global supply chain manufacturing side. I think

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Speaker 8: MODI is very much forocus on helping sort of move

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Speaker 8: the society from the graians to more organization. Valuations are

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Speaker 8: challenging in certain areas, but I do think that looking

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Speaker 8: out over the next ten years, we think India is

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Speaker 8: one of the is the largest mastest growing economy and

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Speaker 8: GDP should double.

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Speaker 3: Is anybody at Wizard not from the London School of Economics?

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Speaker 2: This is like an Orzegg requirement.

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Speaker 8: You have to have an l I think economic history

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Speaker 8: I studied at the London School of Economics really important

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Speaker 8: helps you develop context particularly when thinking about geopolitical events

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Speaker 8: and investments.

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Speaker 3: Throughout the society, or people that haven't studied any economic history,

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Speaker 3: or just as simple as I can on India, then

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Speaker 3: as well, please discuss tariffs. The summary of Lazard's thought

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Speaker 3: Paul had this yesterday, how can we be over the

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Speaker 3: terriff banks?

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Speaker 2: Yet we're not?

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Speaker 8: Are we We're getting close the expectations that we would

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Speaker 8: have seen a trade deal early in July, and that

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Speaker 8: did not.

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Speaker 2: Occur.

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Speaker 8: I think we're now at a point where there's more

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Speaker 8: optimism on that side. We're hearing favorable dynamics that there's

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Speaker 8: been more dialogue between the two. I think the context

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Speaker 8: of where India can serve as a true partner with

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Speaker 8: the United States from manufacturing from Indian also improve and

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Speaker 8: modernize a lot of its industrial sector. And then at

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Speaker 8: the same time, the large non resident Indian community here

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Speaker 8: in the US and in the private sector are quite engaged.

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Speaker 2: So I'm optimistic.

442
00:21:31,640 --> 00:21:34,560
Speaker 8: I think that we're going to see some positive developments

443
00:21:34,640 --> 00:21:35,640
Speaker 8: over the coming months.

444
00:21:35,880 --> 00:21:39,760
Speaker 4: As an emerging market manager, how much time do you

445
00:21:39,800 --> 00:21:44,080
Speaker 4: spend out of the US visiting in these countries A lot?

446
00:21:45,600 --> 00:21:47,840
Speaker 2: It's a part of it's a key part of the job.

447
00:21:48,040 --> 00:21:50,920
Speaker 8: I will say, what's really important as an investor in

448
00:21:50,960 --> 00:21:53,439
Speaker 8: emerging markets you have to be you have to need

449
00:21:53,480 --> 00:21:56,640
Speaker 8: to think holistically. It's not about just traveling and meeting

450
00:21:56,680 --> 00:22:01,080
Speaker 8: companies and reporting yesterday's news you've got it and push

451
00:22:01,359 --> 00:22:03,879
Speaker 8: some of the scenarios. I think we also have the

452
00:22:04,000 --> 00:22:07,399
Speaker 8: ability as a global emerging market investor to bring perspective.

453
00:22:07,480 --> 00:22:10,080
Speaker 8: So how do the development that we're seeing in China,

454
00:22:10,160 --> 00:22:12,119
Speaker 8: how does that impact the path of a country like

455
00:22:12,119 --> 00:22:14,280
Speaker 8: Brazil is going to experience, or what Mexico may be

456
00:22:14,320 --> 00:22:16,320
Speaker 8: doing right now around tariff negotiation.

457
00:22:16,440 --> 00:22:17,800
Speaker 2: So that is really important.

458
00:22:17,840 --> 00:22:19,600
Speaker 8: I think we viewed as an edge and that as

459
00:22:19,640 --> 00:22:22,560
Speaker 8: a result, because we represent long term money, we can

460
00:22:22,600 --> 00:22:25,200
Speaker 8: think fundamentally and that to us is the marketing efficiency.

461
00:22:25,520 --> 00:22:30,640
Speaker 3: Thank you so much for this, Lazarresset Management, Stay with us.

462
00:22:30,840 --> 00:22:41,160
Speaker 3: More from Bloomberg Surveillance coming up after this.

463
00:22:41,160 --> 00:22:45,080
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday

464
00:22:45,080 --> 00:22:48,399
Speaker 1: starting at seven am Eastern on Applecarplay and Android Auto

465
00:22:48,520 --> 00:22:51,480
Speaker 1: with the Bloomberg Business app. You can also listen live

466
00:22:51,560 --> 00:22:55,159
Speaker 1: on Amazon Alexa from our flagship New York station, Just

467
00:22:55,200 --> 00:22:59,080
Speaker 1: say Alexa Play Bloomberg eleven thirty.

468
00:23:02,600 --> 00:23:05,560
Speaker 9: Hello and welcome to the first episode of Odd Lots.

469
00:23:05,680 --> 00:23:08,040
Speaker 9: I'm Joe Wisenthal, co host of What You Miss and

470
00:23:08,520 --> 00:23:10,080
Speaker 9: editor at Bloomberg Markets Now.

471
00:23:10,119 --> 00:23:13,120
Speaker 10: I'm Tracy Alloway, executive editor of Bloomberg Markets.

472
00:23:13,359 --> 00:23:16,399
Speaker 9: Here at odd Lots, we want to have a discussion

473
00:23:16,520 --> 00:23:22,720
Speaker 9: every week about economics, finance, markets, market structure, which Tracy loves,

474
00:23:23,280 --> 00:23:27,320
Speaker 9: maybe some politics and culture thrown in stuff that doesn't

475
00:23:27,359 --> 00:23:30,959
Speaker 9: necessarily fit into the normal day to day conversation. And

476
00:23:30,960 --> 00:23:33,920
Speaker 9: we couldn't think of any guest better to have than

477
00:23:34,040 --> 00:23:34,640
Speaker 9: Tom Keen.

478
00:23:35,000 --> 00:23:38,879
Speaker 2: Am I a guinea pig? You're the guinea pig? Okay,

479
00:23:38,960 --> 00:23:39,360
Speaker 2: thank you?

480
00:23:40,600 --> 00:23:43,920
Speaker 3: It was really something. Good morning all of you across

481
00:23:43,960 --> 00:23:46,120
Speaker 3: the nation and around the road. Good morning on YouTube.

482
00:23:46,600 --> 00:23:51,080
Speaker 3: Please subscribe to Bloomberg Podcasts Odd Lots with a tenth year.

483
00:23:52,040 --> 00:23:54,280
Speaker 3: I was definitely a guinea pig. And you guys are

484
00:23:54,320 --> 00:23:56,680
Speaker 3: so desperate that you didn't have anybody else to talk

485
00:23:56,720 --> 00:24:01,760
Speaker 3: to Tracy Aloway, Joe Wisenhalt and celebrate of what they

486
00:24:01,880 --> 00:24:05,520
Speaker 3: have wrought. How did you two meet? I need to

487
00:24:05,560 --> 00:24:08,480
Speaker 3: start with that you were at the Financial Times. I

488
00:24:08,520 --> 00:24:10,840
Speaker 3: would read I said this the other day in a taping.

489
00:24:11,160 --> 00:24:12,480
Speaker 3: You read Tracy.

490
00:24:12,160 --> 00:24:15,240
Speaker 2: Alloway and you're like, damn it, she's smart.

491
00:24:15,560 --> 00:24:19,680
Speaker 3: Joe Wisenthal single handedly changed journalism and business and cider.

492
00:24:19,840 --> 00:24:23,520
Speaker 2: Did you meet before Bloomberger? Here? We met before Bloomberg.

493
00:24:24,119 --> 00:24:25,800
Speaker 2: I mean we mostly met on the internet.

494
00:24:25,800 --> 00:24:27,760
Speaker 9: We had like met like at a bar, probably in

495
00:24:27,920 --> 00:24:29,560
Speaker 9: some sort of like journalist happy hours.

496
00:24:29,640 --> 00:24:32,040
Speaker 10: Well, so Joe was always sort of a presence, just

497
00:24:32,080 --> 00:24:34,480
Speaker 10: floating in the ether the internet in my head. But

498
00:24:34,560 --> 00:24:37,280
Speaker 10: the first time we met in person I remember distinctly

499
00:24:37,400 --> 00:24:40,119
Speaker 10: because it was at a bar in Midtown and I

500
00:24:40,200 --> 00:24:42,359
Speaker 10: was excited to meet you, and I go up to you,

501
00:24:42,400 --> 00:24:44,480
Speaker 10: and you know how the first time you meet someone,

502
00:24:44,520 --> 00:24:46,080
Speaker 10: you expect a little bit of small talk.

503
00:24:46,640 --> 00:24:47,639
Speaker 2: How's it going.

504
00:24:47,920 --> 00:24:51,040
Speaker 10: The first question Joe asked me was what do you

505
00:24:51,040 --> 00:24:53,800
Speaker 10: think is going on with the Eurozone? And that was it,

506
00:24:53,840 --> 00:24:56,400
Speaker 10: and the whole conversation was just about the Eurozone after that.

507
00:24:56,320 --> 00:24:58,080
Speaker 2: Sounds fun, Yeah, it's fun.

508
00:24:58,320 --> 00:25:00,480
Speaker 9: We've been having fun talking about the Erozone since.

509
00:25:00,600 --> 00:25:00,760
Speaker 3: You know.

510
00:25:00,840 --> 00:25:02,960
Speaker 9: That was the first time in ten years that I

511
00:25:02,960 --> 00:25:05,440
Speaker 9: have listened to that intro to the first episode.

512
00:25:05,720 --> 00:25:08,000
Speaker 2: It's better than I think. Yeah, I was going to

513
00:25:08,040 --> 00:25:08,680
Speaker 2: say the same thing.

514
00:25:08,720 --> 00:25:11,879
Speaker 9: It didn't sound quite as bad and awkward as I expected.

515
00:25:12,160 --> 00:25:14,359
Speaker 2: I have my memories from that time.

516
00:25:14,600 --> 00:25:17,199
Speaker 9: You know, the first episode with Tom was great, but

517
00:25:17,240 --> 00:25:18,800
Speaker 9: my memories from that time was like, oh, it was

518
00:25:18,880 --> 00:25:21,440
Speaker 9: very uncomfortable figuring out what we were doing on the podcast.

519
00:25:21,520 --> 00:25:22,760
Speaker 9: It didn't sound terrible, didn't.

520
00:25:23,119 --> 00:25:24,640
Speaker 2: No, you make it up as you go.

521
00:25:25,400 --> 00:25:29,080
Speaker 3: As a cardinal rule, I never ever listened to anything

522
00:25:29,240 --> 00:25:32,240
Speaker 3: we can't can't. The only time I've broken that rule, Paul,

523
00:25:32,359 --> 00:25:35,040
Speaker 3: was Joe Stieglitz and Ken Rogoff at Davos.

524
00:25:35,200 --> 00:25:37,879
Speaker 2: That's the only thing I've ever listened Tracy.

525
00:25:37,920 --> 00:25:41,560
Speaker 4: Yet, Howsey the podcast evolved over these ten years, have

526
00:25:41,600 --> 00:25:42,280
Speaker 4: you guys changed the.

527
00:25:42,240 --> 00:25:43,680
Speaker 2: Way you'll kind of think about it?

528
00:25:43,920 --> 00:25:44,200
Speaker 5: Yeah?

529
00:25:44,320 --> 00:25:47,440
Speaker 10: I mean, actually that intro wasn't too bad in terms

530
00:25:47,440 --> 00:25:49,320
Speaker 10: of framing what we were going to do.

531
00:25:50,000 --> 00:25:50,960
Speaker 2: But we were very lucky.

532
00:25:51,040 --> 00:25:53,640
Speaker 10: We had a very long runway in doing this because,

533
00:25:53,680 --> 00:25:56,439
Speaker 10: as you said, even ten years ago, podcasts were not

534
00:25:56,560 --> 00:25:59,479
Speaker 10: as popular as they are now, and so we launched

535
00:25:59,480 --> 00:26:02,040
Speaker 10: this before or Bloomberg even had a podcast team. We

536
00:26:02,040 --> 00:26:04,840
Speaker 10: were doing it with radio and have a team.

537
00:26:04,640 --> 00:26:05,119
Speaker 2: Right, we have a.

538
00:26:06,760 --> 00:26:09,520
Speaker 10: Yeah, so shout out to Bloomberg Podcasts of course, But

539
00:26:10,200 --> 00:26:12,760
Speaker 10: you know, no one was really listening, No, one internally

540
00:26:13,119 --> 00:26:15,760
Speaker 10: was pressuring us to make sure that we were growing,

541
00:26:15,800 --> 00:26:18,679
Speaker 10: and so we were really allowed to explore and figure

542
00:26:18,680 --> 00:26:20,960
Speaker 10: out what it is that we wanted to talk to

543
00:26:21,000 --> 00:26:21,520
Speaker 10: talk about.

544
00:26:21,720 --> 00:26:23,680
Speaker 9: I do think at the beginning, you know, we had

545
00:26:23,720 --> 00:26:26,240
Speaker 9: this impulse it's like, let's just talk about anything other

546
00:26:26,280 --> 00:26:29,280
Speaker 9: than what's in the news, right and so it's like, Okay,

547
00:26:29,320 --> 00:26:31,760
Speaker 9: the news is talking about the Fed, et cetera. So

548
00:26:31,840 --> 00:26:34,679
Speaker 9: we'll talk to Tom Keane about ban Joe's and guitars

549
00:26:34,720 --> 00:26:37,440
Speaker 9: and charting by hand and stuff like that, because this

550
00:26:37,480 --> 00:26:39,679
Speaker 9: is not something that would ever, you know, be in

551
00:26:39,720 --> 00:26:43,040
Speaker 9: the news. Over time, I think we've definitely become we've

552
00:26:43,080 --> 00:26:45,600
Speaker 9: definitely become a little bit more we hew to the news.

553
00:26:45,400 --> 00:26:47,320
Speaker 2: But not, you know, not intensely.

554
00:26:47,359 --> 00:26:50,440
Speaker 9: We did an episode this week about the dairy industry

555
00:26:50,960 --> 00:26:53,639
Speaker 9: that's something prime in the news. Not really, so we

556
00:26:53,680 --> 00:26:55,679
Speaker 9: sort of mix it up still, but it's become a

557
00:26:55,720 --> 00:26:57,080
Speaker 9: bit more timely.

558
00:26:57,119 --> 00:26:59,040
Speaker 2: I guess you'd say, I'm amazed.

559
00:26:59,080 --> 00:27:01,040
Speaker 4: I'm sure you guys are as well, just how many

560
00:27:01,080 --> 00:27:05,720
Speaker 4: podcasts there are now. It's such a popular medium for everybody,

561
00:27:05,760 --> 00:27:08,080
Speaker 4: from the famous folks down to people you've never heard

562
00:27:08,080 --> 00:27:09,959
Speaker 4: of that just want to I don't know, get their

563
00:27:10,000 --> 00:27:13,560
Speaker 4: voice out. How do you guys kind of position your podcast.

564
00:27:13,160 --> 00:27:14,680
Speaker 2: With all the stuff that's out there.

565
00:27:15,119 --> 00:27:17,920
Speaker 10: You know, we get asked about competition quite a lot,

566
00:27:17,960 --> 00:27:21,200
Speaker 10: and I've heard of people launching podcasts because they want

567
00:27:21,240 --> 00:27:23,800
Speaker 10: their own lots at competitors, Like I hear that all

568
00:27:23,840 --> 00:27:26,920
Speaker 10: the time. It actually it probably bothers me a little

569
00:27:26,920 --> 00:27:30,800
Speaker 10: bit more than flats. But the only thing, the only

570
00:27:30,880 --> 00:27:33,879
Speaker 10: response you could possibly do is just keep on going

571
00:27:33,920 --> 00:27:37,200
Speaker 10: and try to have the best, most engaging interviews possible

572
00:27:37,240 --> 00:27:39,359
Speaker 10: and the best content. So we kind of just keep

573
00:27:39,520 --> 00:27:40,760
Speaker 10: doing what we have been doing.

574
00:27:40,920 --> 00:27:43,720
Speaker 3: John Nicholswat, editor in chief of Bloomberg News, out with

575
00:27:43,760 --> 00:27:46,960
Speaker 3: a note today on the celebration of Joe Wisenthal, Tracy.

576
00:27:46,760 --> 00:27:48,320
Speaker 2: Laway, and Odd Laws.

577
00:27:48,359 --> 00:27:51,159
Speaker 3: At the back end of his note, he's looking for

578
00:27:51,240 --> 00:27:52,200
Speaker 3: stadium tours.

579
00:27:52,240 --> 00:27:53,440
Speaker 2: What's the plan forward?

580
00:27:53,480 --> 00:27:55,800
Speaker 3: Are you going to keep it under ten thousand live

581
00:27:55,840 --> 00:27:57,919
Speaker 3: events or can you pop out the twenty thousand?

582
00:27:58,000 --> 00:28:02,840
Speaker 9: I think we play Daryl Royal Stadium in Austin, Texas

583
00:28:03,040 --> 00:28:05,960
Speaker 9: back one day. That's obviously the dream. No, you know,

584
00:28:06,119 --> 00:28:08,080
Speaker 9: like this is the fun thing, which is that because

585
00:28:08,119 --> 00:28:10,399
Speaker 9: we have like this community of listeners that we've built

586
00:28:10,840 --> 00:28:12,520
Speaker 9: for a long time, we've been able to you know,

587
00:28:12,560 --> 00:28:14,399
Speaker 9: it is mostly still a podcast, but we have a

588
00:28:15,560 --> 00:28:18,520
Speaker 9: daily newsletter, and we have a discord channel where people

589
00:28:18,680 --> 00:28:20,840
Speaker 9: get together online and they chat twenty four to seven

590
00:28:20,880 --> 00:28:23,600
Speaker 9: about topics they're interested in relating to things we talk about.

591
00:28:23,680 --> 00:28:25,879
Speaker 9: And we've been doing more and more live shows. We

592
00:28:25,920 --> 00:28:27,840
Speaker 9: did more in twenty twenty five than we did in

593
00:28:27,880 --> 00:28:30,200
Speaker 9: twenty twenty four, and I think twenty twenty six will

594
00:28:30,200 --> 00:28:32,960
Speaker 9: be a big year for that. It's fun meeting fans

595
00:28:33,440 --> 00:28:36,679
Speaker 9: in various cities and seeing what they're into, and so

596
00:28:36,800 --> 00:28:39,720
Speaker 9: hopefully across the country. Maybe some in Europe, don't you

597
00:28:39,840 --> 00:28:40,560
Speaker 9: maybe Hong Kong.

598
00:28:40,640 --> 00:28:41,760
Speaker 2: See does I have?

599
00:28:41,840 --> 00:28:43,600
Speaker 3: And I don't know where I got to some I'm

600
00:28:43,600 --> 00:28:46,080
Speaker 3: going to blame it on my father. Both of you

601
00:28:46,680 --> 00:28:48,800
Speaker 3: don't talk down to your audience.

602
00:28:49,200 --> 00:28:50,360
Speaker 2: How do you do that? Tracy?

603
00:28:51,400 --> 00:28:54,160
Speaker 10: So, I think this is really important to understand. I

604
00:28:54,160 --> 00:28:57,640
Speaker 10: think the media has a tendency maybe to oversimplify things.

605
00:28:58,080 --> 00:29:01,000
Speaker 10: Bullet points became very popular, not saying that there isn't

606
00:29:01,000 --> 00:29:04,320
Speaker 10: a place for summarias and simplification, but I think what

607
00:29:04,360 --> 00:29:08,160
Speaker 10: we've discovered through odd blots is that people really want

608
00:29:08,200 --> 00:29:10,840
Speaker 10: to learn and What ends up happening is we do

609
00:29:10,960 --> 00:29:14,640
Speaker 10: one episode on a topic. Semiconductors is the classic example.

610
00:29:14,640 --> 00:29:17,560
Speaker 10: We started talking about those in early twenty twenty, and

611
00:29:17,600 --> 00:29:19,720
Speaker 10: then everyone just gets interested in it.

612
00:29:19,920 --> 00:29:21,480
Speaker 2: We get interested in it, and we.

613
00:29:21,440 --> 00:29:24,480
Speaker 10: Just do more and more hours and we learn alongside

614
00:29:24,480 --> 00:29:25,360
Speaker 10: our listeners.

615
00:29:25,440 --> 00:29:27,959
Speaker 4: Is there is there a guest that you've wanted to

616
00:29:28,000 --> 00:29:29,200
Speaker 4: get you just haven't gotten?

617
00:29:29,280 --> 00:29:30,520
Speaker 2: Really? Not really?

618
00:29:30,600 --> 00:29:32,960
Speaker 9: I mean, look, there's always you can always list big

619
00:29:33,080 --> 00:29:35,600
Speaker 9: names that would be fun to have on the podcast.

620
00:29:35,640 --> 00:29:41,560
Speaker 9: I just don't Chris Stapleton, Okay, yes, right, there are

621
00:29:41,560 --> 00:29:44,120
Speaker 9: some major country stars I'd love to have on No,

622
00:29:44,200 --> 00:29:46,840
Speaker 9: but for real, like, there's always names, right, there's always

623
00:29:47,000 --> 00:29:49,440
Speaker 9: you know, I never had almost got.

624
00:29:49,280 --> 00:29:51,840
Speaker 2: To get people soliciting me. Can you get me on Oddline?

625
00:29:52,200 --> 00:29:55,880
Speaker 2: Don't tell? Okay, you know it's funny.

626
00:29:55,880 --> 00:29:57,520
Speaker 9: I always tell people if you have an idea, to

627
00:29:57,560 --> 00:30:00,600
Speaker 9: pitch it and people think I'm joking or I don't

628
00:30:00,640 --> 00:30:00,880
Speaker 9: pitch it.

629
00:30:00,960 --> 00:30:05,959
Speaker 3: Right, here's the Oddlot's guest for Joe Wise and Thought Tracy.

630
00:30:06,000 --> 00:30:09,480
Speaker 3: You can play along as well. You must speak with

631
00:30:09,600 --> 00:30:14,320
Speaker 3: John McBride of Blackbird's studio in Nashville. Gat Love the

632
00:30:14,400 --> 00:30:19,160
Speaker 3: largest correct collection of the stuff that's someone like Chris Stapleton, singer.

633
00:30:19,240 --> 00:30:20,080
Speaker 2: I would love to do that.

634
00:30:20,120 --> 00:30:24,160
Speaker 3: He's Martina McBride's husband and he do you have a contact?

635
00:30:24,200 --> 00:30:26,920
Speaker 2: I call it Blackbird, you know, use my name and

636
00:30:27,200 --> 00:30:27,600
Speaker 2: hang up.

637
00:30:29,400 --> 00:30:31,360
Speaker 10: How we end up with an All Bloughts live show

638
00:30:31,400 --> 00:30:31,920
Speaker 10: in Nashville.

639
00:30:32,400 --> 00:30:37,080
Speaker 3: Yes, I was at the Bluebird Cafe years ago, and

640
00:30:37,120 --> 00:30:39,600
Speaker 3: the studs are in the back row, including a younger

641
00:30:39,680 --> 00:30:43,800
Speaker 3: John McBride. But John McBride deserves.

642
00:30:43,200 --> 00:30:44,320
Speaker 2: To be on Odd Loss.

643
00:30:44,920 --> 00:30:45,960
Speaker 9: That a great episode.

644
00:30:46,120 --> 00:30:47,960
Speaker 2: That would be a great episode. That's how it works.

645
00:30:48,520 --> 00:30:49,560
Speaker 2: I'm sorry, Tracy, I.

646
00:30:51,880 --> 00:30:54,200
Speaker 10: Like country. I just want to say Tom, thank you

647
00:30:54,280 --> 00:30:58,760
Speaker 10: for being our first guest. First guest we could imagine.

648
00:30:58,880 --> 00:31:03,360
Speaker 2: Odd lots here at tenth anniversary self abration. Stay with us.

649
00:31:03,560 --> 00:31:06,800
Speaker 3: More from Bloomberg Surveillance coming up after this.

650
00:31:14,040 --> 00:31:17,640
Speaker 1: You're listening to the Bloomberg Surveillance Podcast. Catch us live

651
00:31:17,680 --> 00:31:20,840
Speaker 1: weekday afternoons from seven to ten am Eastern Listen on

652
00:31:20,920 --> 00:31:24,600
Speaker 1: Applecarplay and Android Otto with the Bloomberg Business app, or

653
00:31:24,760 --> 00:31:26,200
Speaker 1: watch us live on YouTube.

654
00:31:26,360 --> 00:31:28,600
Speaker 3: Let's get right to it with Futures up twenty four,

655
00:31:28,720 --> 00:31:31,440
Speaker 3: Joy in the markets, Joy with the newspapers.

656
00:31:31,440 --> 00:31:32,200
Speaker 2: Here's lisaming to you.

657
00:31:32,400 --> 00:31:34,640
Speaker 11: Okay, we've been hearing a lot about all the spending

658
00:31:34,720 --> 00:31:37,720
Speaker 11: going into AI. But where is the money coming from

659
00:31:37,800 --> 00:31:40,320
Speaker 11: for these mega deals? That's the question, right. So the

660
00:31:40,360 --> 00:31:42,400
Speaker 11: Wall Street Journal actually has a look into some of

661
00:31:42,440 --> 00:31:47,320
Speaker 11: the deals of some of the biggest AI infrastructure ones Meta, OpenAI, Xai,

662
00:31:47,760 --> 00:31:51,760
Speaker 11: and it shows actually some creative, sometimes risky funding options.

663
00:31:51,800 --> 00:31:55,000
Speaker 11: They call them Frankenstein financing because they're picking and pulling

664
00:31:55,000 --> 00:31:57,360
Speaker 11: from different places. So I'll give you an example. Okay,

665
00:31:57,400 --> 00:32:00,840
Speaker 11: so Blue Owl Capital they struck with they stuck with Meta.

666
00:32:01,080 --> 00:32:03,920
Speaker 11: They're joint venture to build this giant data center in Louisiana.

667
00:32:04,000 --> 00:32:06,480
Speaker 11: But sources are telling the Wall Street Journal blue Owl

668
00:32:06,760 --> 00:32:09,800
Speaker 11: buying private equity into the deal. They're bringing them private

669
00:32:09,840 --> 00:32:11,680
Speaker 11: equity to the del They're also receiving a debt light

670
00:32:11,760 --> 00:32:15,400
Speaker 11: guarantee from Meta. If the partnership falls apart. Then you

671
00:32:15,440 --> 00:32:18,440
Speaker 11: look into the deal involving open Ai and Oracle, and

672
00:32:18,480 --> 00:32:20,520
Speaker 11: the Wall Street Journal says it involves a lending group

673
00:32:20,560 --> 00:32:21,880
Speaker 11: of more than thirty banks.

674
00:32:22,040 --> 00:32:23,000
Speaker 2: So this is where they're doing it.

675
00:32:23,120 --> 00:32:25,840
Speaker 11: There's a lot of issues behind it, but a lot

676
00:32:25,880 --> 00:32:27,560
Speaker 11: to get into in that article. You're gonna have to

677
00:32:27,600 --> 00:32:30,000
Speaker 11: take a look at it. For yourself, because it's very

678
00:32:30,080 --> 00:32:32,320
Speaker 11: like detailed. Then it's get a lot of track.

679
00:32:32,400 --> 00:32:36,040
Speaker 4: It's private equity, it's target credit, it's banks, it's they're

680
00:32:36,160 --> 00:32:39,120
Speaker 4: looking for capital anywhere. And these are companies meta Google

681
00:32:39,160 --> 00:32:42,680
Speaker 4: that have just Iron Clan balance sheets, but even their

682
00:32:42,720 --> 00:32:44,880
Speaker 4: balance sheets are being challenged.

683
00:32:44,920 --> 00:32:47,960
Speaker 2: Here somebody is spending. We don't know the time. I

684
00:32:48,000 --> 00:32:50,520
Speaker 2: could Paul been there, done that.

685
00:32:51,960 --> 00:32:53,720
Speaker 4: I haven't seen the dollars here. I just add the

686
00:32:53,760 --> 00:32:56,040
Speaker 4: dollars today are just short.

687
00:32:57,320 --> 00:32:59,480
Speaker 2: Next week. Okay. This one is about Harvard.

688
00:32:59,600 --> 00:33:02,040
Speaker 11: So the school says they're handing out too many a's

689
00:33:02,120 --> 00:33:04,720
Speaker 11: to students. There was a report that the school put out.

690
00:33:04,800 --> 00:33:08,800
Speaker 11: It shows great inflation across the board. Faculty says they're

691
00:33:08,840 --> 00:33:12,120
Speaker 11: surprised at how lenient grading is. The students. They're not

692
00:33:12,200 --> 00:33:14,880
Speaker 11: happy about it. They say they deserve the grades. They

693
00:33:14,880 --> 00:33:17,120
Speaker 11: say they study a lot, they sleep a little bit,

694
00:33:17,160 --> 00:33:19,640
Speaker 11: they stress out. They feel Harvard shouldn't kind of move

695
00:33:19,680 --> 00:33:22,320
Speaker 11: the goalposts, right, So that's what they're saying.

696
00:33:22,320 --> 00:33:26,200
Speaker 4: A lot of students saying Harvard, it's got the Harvard name.

697
00:33:26,240 --> 00:33:28,000
Speaker 2: You're done, okay.

698
00:33:28,280 --> 00:33:32,320
Speaker 3: Major Specific is our wonderful conversation with Troy Gayski of MIT.

699
00:33:32,920 --> 00:33:33,720
Speaker 2: The other day.

700
00:33:34,040 --> 00:33:36,920
Speaker 3: If you look at the different majors in the school, Lisa,

701
00:33:36,920 --> 00:33:39,920
Speaker 3: whether it's Harvard or Slippery Rock, I don't care. There

702
00:33:39,960 --> 00:33:43,840
Speaker 3: are certain majors where there's no great inflation, like economics,

703
00:33:44,280 --> 00:33:48,360
Speaker 3: like engineering, like medicine, Paul, give me some other names.

704
00:33:47,720 --> 00:33:50,240
Speaker 2: And the science, the Harvard.

705
00:33:50,520 --> 00:33:53,200
Speaker 3: Chemistry, which is the toughest major in any school. Everybody

706
00:33:53,280 --> 00:33:55,640
Speaker 3: knows that. The rest of them. Everybody gets an ay.

707
00:33:56,080 --> 00:33:59,040
Speaker 3: I mean, I've lived in my family. Absolutely, you don't

708
00:34:00,240 --> 00:34:02,240
Speaker 3: get me a Tito's intake in the control run on

709
00:34:02,360 --> 00:34:03,960
Speaker 3: an emergency basis.

710
00:34:04,320 --> 00:34:08,040
Speaker 11: Next, it's just you know, Okay, we all know Apple users.

711
00:34:08,040 --> 00:34:10,440
Speaker 11: They love their iPhones, right, but a lot of people

712
00:34:10,560 --> 00:34:13,480
Speaker 11: are making it part of their outfit. Apple wants to

713
00:34:13,560 --> 00:34:16,920
Speaker 11: capitalize on this with wearable iPhone fashion.

714
00:34:17,239 --> 00:34:17,880
Speaker 2: I kid you not.

715
00:34:17,960 --> 00:34:20,959
Speaker 11: It is teaming up with Japanese luxury fashion brand isse

716
00:34:21,080 --> 00:34:24,920
Speaker 11: Miake for this limited time iPhone pocket. Okay, you can

717
00:34:24,960 --> 00:34:27,120
Speaker 11: check it out on their website. It goes on sale Friday.

718
00:34:27,680 --> 00:34:29,560
Speaker 11: So the pocket, it looks like a sock like. It

719
00:34:29,560 --> 00:34:31,319
Speaker 11: comes in a number of colors, is kind of knit.

720
00:34:31,520 --> 00:34:33,600
Speaker 11: There's a short one and a long one. Okay, the

721
00:34:33,640 --> 00:34:36,400
Speaker 11: long one, it's like a crossbody Okay, it's about two

722
00:34:36,480 --> 00:34:38,760
Speaker 11: hundred and thirty dollars just to slip your little iPhone

723
00:34:38,760 --> 00:34:39,080
Speaker 11: in there.

724
00:34:39,200 --> 00:34:41,720
Speaker 3: But it is a definite license for somebody to steal

725
00:34:41,840 --> 00:34:44,400
Speaker 3: your fancy. I mean, this is kind of putting it

726
00:34:44,480 --> 00:34:48,320
Speaker 3: out there. People are stealing iPhones, yes, a true.

727
00:34:48,360 --> 00:34:50,400
Speaker 2: Now I'm sitting a flag on it saying here, Sam,

728
00:34:50,480 --> 00:34:51,200
Speaker 2: here I am.

729
00:34:52,640 --> 00:34:52,920
Speaker 5: It is.

730
00:34:52,960 --> 00:34:55,120
Speaker 11: And they're attaching them to their backs like those.

731
00:34:55,120 --> 00:34:56,960
Speaker 4: I see all the tersts here, at all the tersts

732
00:34:56,960 --> 00:34:58,760
Speaker 4: here in New York, they've got these little the little

733
00:34:58,800 --> 00:35:01,000
Speaker 4: packs that go across the shoulder, across their breath. And

734
00:35:01,040 --> 00:35:03,960
Speaker 4: I noticed it when I was in Italy. Everybody had it.

735
00:35:04,040 --> 00:35:06,120
Speaker 4: I mean, so people are I'm like, just put it

736
00:35:06,120 --> 00:35:08,160
Speaker 4: in your front pocket. Put the you know, your your

737
00:35:08,160 --> 00:35:08,759
Speaker 4: wallet in front.

738
00:35:08,760 --> 00:35:11,520
Speaker 11: It's a fashion statement. But I didn't even realize, like

739
00:35:11,520 --> 00:35:14,840
Speaker 11: a Sam a Yankee did the black turtlenext that Steve Jobs.

740
00:35:15,840 --> 00:35:18,160
Speaker 2: Should I get the fashion debate right now? Quickly?

741
00:35:18,360 --> 00:35:22,359
Speaker 3: Should I get the big scarf? Gary Oldhoman? You know

742
00:35:22,600 --> 00:35:23,759
Speaker 3: everybody's giant far.

743
00:35:25,640 --> 00:35:31,000
Speaker 11: The big fashion is like John Tucker has fashion played.

744
00:35:34,280 --> 00:35:39,120
Speaker 1: This is the Bloomberg Surveillance podcast, available on Apple, Spotify,

745
00:35:39,239 --> 00:35:43,520
Speaker 1: and anywhere else you get your podcasts. Listen live each weekday,

746
00:35:43,640 --> 00:35:47,160
Speaker 1: seven to ten am Eastern on Bloomberg dot Com, the

747
00:35:47,200 --> 00:35:51,239
Speaker 1: iHeartRadio app, tune In, and the Bloomberg Business App. You

748
00:35:51,280 --> 00:35:54,640
Speaker 1: can also watch us live every weekday on YouTube and

749
00:35:54,840 --> 00:35:56,560
Speaker 1: always on the Bloomberg Terminal

750
00:36:00,640 --> 00:36:02,360
Speaker 10: Everything know how to s