Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Tom Keene along
Speaker 2: with Paul Sweeney. Join us each day for insight from
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Speaker 2: talk of Rebecca Patterson of Bridgewater, and she's a long
Speaker 2: garden leave right now we hop place to place. Yeah,
Speaker 2: you know she's out on garden leave now. She's the Bridgewak.
Speaker 2: She's the bestsemer, trust I know, the managing careful money.
Speaker 2: But when I first met her she was hurting yen
Speaker 2: in JP Morgan. She is expert on currency intervention. We
Speaker 2: are on and just start strong this morning with Mss Patterson. Rebecca,
Speaker 2: can you do a unilateral intervention where it works? Every
Speaker 2: textbook I know? Iss, No, you can't.
Speaker 1: The textbooks are right in this case. So Japan is
Speaker 1: trying to slow the weakening yen trend, but I think
Speaker 1: they know full well they can't turn the trend just
Speaker 1: by intervening. They can spend a lot of money to
Speaker 1: try to slow it down, but that's all they're going
Speaker 1: to get. To have a real turn in a currency,
Speaker 1: you need coordinated intervention. So you have to have several
Speaker 1: countries working together, ideally including the US. That sends a
Speaker 1: big signal, and you want policy moving in the same
Speaker 1: direction as the intervention. So in this case, if they
Speaker 1: want a stronger yen, they would need to be raising
Speaker 1: interest rates by a lot more than what's currently expected
Speaker 1: in the market.
Speaker 2: What's so important here is a multi dimensionality. But the
Speaker 2: simplistic media approaches. What about the FED? Forget about that,
Speaker 2: they have to worry about the entire Pacific Rim. They're
Speaker 2: getting a free launch right now with enhanced exports? Are
Speaker 2: you going there this summer? Everybody else's I know told
Speaker 2: me about it.
Speaker 1: I know a huge You can get a lot of
Speaker 1: sushi right now.
Speaker 2: What the censor is? There's a Pacific Rim impact?
Speaker 3: What is it?
Speaker 2: Right?
Speaker 1: So a lot of these countries compete with each other
Speaker 1: for the US, for Europe. So Japan going down puts
Speaker 1: pressure on countries like South Korea, Indonesia, Philippines, Singapore, China
Speaker 1: to also have weaker currency. So Korea is making a
Speaker 1: lot of comments now that they're in some pain. Could
Speaker 1: see intervention in other countries across Asia too, So they're
Speaker 1: all going to be fighting against this trend, but it's
Speaker 1: a fight they can't win.
Speaker 4: So all right, Just keeping on top of that Japan story,
Speaker 4: we think about the US exceptionalism from an economic perspective.
Speaker 4: That's been the discussion over the last six to twelve
Speaker 4: months here. How unusual is it that you have a
Speaker 4: US economy growing at the rate it's growing versus China,
Speaker 4: versus Europe. How unusual is that? And how do you
Speaker 4: play that?
Speaker 1: Well, it's not that unusual to see the US as
Speaker 1: kind of the main engine of global growth. And when
Speaker 1: that is the case, it is pretty normal that the
Speaker 1: US equity market would be outperforming, that the dollar would
Speaker 1: be strong because foreign capitals coming here to invest in
Speaker 1: the US. US capital is staying here because it's more attractive.
Speaker 1: What I think will be interesting as we look ahead
Speaker 1: to this summer. You saw the news I'm sure, and
Speaker 1: you've already reported on China this morning talking about having
Speaker 1: a policy maker session in July talking about additional stimulus
Speaker 1: elements probably before that, including rate cuts, et cetera. Can
Speaker 1: they do enough so it's not one engine of growth,
Speaker 1: it's multiple engines of growth. I'm skeptical. I don't think
Speaker 1: they'll be able to pull it off, but they're going
Speaker 1: to be given us more.
Speaker 2: What does your PAS travails mean for American citizens? How
Speaker 2: does it redound back to our listeners of viewers this
Speaker 2: morning in America?
Speaker 1: Well, again, the weak yen is a reflection of the
Speaker 1: broadly strong dollar. The dollar is up against almost every
Speaker 1: currency around the world ear to date, so you do
Speaker 1: need to think about what does the strong dollar mean.
Speaker 1: The strong dollar tends to be a pretty big headwind
Speaker 1: for emerging market equities. So that's an area that already
Speaker 1: has idiosyncratic risk around China, but now you have this
Speaker 1: broad macro risk as well. The strong dollar is the
Speaker 1: Fed's best friend. If the FED is trying to get
Speaker 1: inflation back down to two percent. A strong dollar slows
Speaker 1: down US growth by making our exports more expensive, less
Speaker 1: competitive overseas. That tends to weigh on manufacturing, slowing growth,
Speaker 1: disinflationary that helps the FED. So again back to intervention.
Speaker 1: The FED doesn't want to help Japan here. The FED
Speaker 1: wants a strong dollar, so it's good for getting inflation down,
Speaker 1: it's bad for our exporters, and it's bad for anyone
Speaker 1: looking at emerging markets right now for diversification.
Speaker 4: Then what does our feeder reserve do tomorrow? We're going
Speaker 4: to have Tom Tom and that surveillance team and they'll
Speaker 4: be you know, full coverage tomorrow afternoon. But what do
Speaker 4: we expect from our feeder reserve tomorrow.
Speaker 1: I definitely think you could have a BINGO card ready
Speaker 1: with words like more confidence, words like patience. I think
Speaker 1: obviously they're going to be on hold. They're going to
Speaker 1: want to see a couple months of inflation coming back
Speaker 1: down after these three months of sticky numbers. But I
Speaker 1: do think we'll get more chatter about what they're doing
Speaker 1: with their balance sheet and slowing down QT and I
Speaker 1: think that could be at the margin, something that helps
Speaker 1: take some of the upward pressure off us heels at
Speaker 1: the long end. And it also could take a little
Speaker 1: pressure off some of the regional banks because they tend
Speaker 1: to get hit harder by what's going on with you?
Speaker 2: Elk, So let me ask you a best of your question,
Speaker 2: and that we're in a bull market. Some would say
Speaker 2: it's a second leg ofable market. What is your wisdom
Speaker 2: for people that have missed the boat leaving the duck
Speaker 2: you got to get back on? Do you load the
Speaker 2: boat on Amazon this afternoon? How do you don't tell
Speaker 2: me you're going to dollar cost average in none on
Speaker 2: the patients for that? I'm wave on.
Speaker 1: If someone handed me a big check today and I
Speaker 1: had to figure out what do I do with it?
Speaker 1: Do I stay on the sidelines? Do I invest? Because
Speaker 1: equity markets go up eight years out of ten on average,
Speaker 1: if the economy is growing, if there's earnings coming through,
Speaker 1: equities tend to benefit from that. It's pretty common sense.
Speaker 1: So I would be getting into the equity market even here,
Speaker 1: even at these valuations. I would not just be loading
Speaker 1: up on the magnificent whatever number you want to use,
Speaker 1: six seven four, But I would probably look for diversified
Speaker 1: exposure to the US market, overweight the US, maybe some
Speaker 1: exposure to Japan as well. I think they can keep
Speaker 1: riding this a while longer and then interesting with fixed
Speaker 1: income you know US bond yields are rising, it's hurting
Speaker 1: those returns. You can buy a nine month treasury right
Speaker 1: now for almost five percent. You hold it through maturity,
Speaker 1: so you know you're going to get that, You're not
Speaker 1: going to lose value, and it gets you through the election.
Speaker 4: So if we have any.
Speaker 1: Wonky little happenings around the election, you know you're going
Speaker 1: to get that return to me. That would be some diversification.
Speaker 1: I also think gold is a good thing to have
Speaker 1: here for diversification, even at these levels.
Speaker 2: We're out of time. Can you come back and go
Speaker 2: Gator a on us?
Speaker 1: I would love to go.
Speaker 2: She live Gator, but as a child she was all Gator.
Speaker 2: Her father major Gator. Oh okay, you know so we'll
Speaker 2: Rebecca Patterson, thank you so much. Thank you for joining
Speaker 2: us today, particularly careful discussion of again, you have to
Speaker 2: get up out of that chair because John Tucker's he says,
Speaker 2: I know, Michael Barr and I got to come in,
Speaker 2: so think Rebecca, thank you, good to see you. George
Speaker 2: Kankalvas joins right now. We're on Apple car Play, on YouTube,
Speaker 2: search Bloomberg Podcasts out there. There's a live chat. It's
Speaker 2: sort of people are waking up Whitefish, Montana.
Speaker 4: Oh do you think they fish out there? I'm guessing
Speaker 4: they fish.
Speaker 2: Whitefish, Montana. Life is tough. Good morning in Whitefish, Montana.
Speaker 2: Good morning. Is George conkalvas As well, head of macro
Speaker 2: strategy at MUFG. That's a Japanese firm, and I think
Speaker 2: it would be more than inappropriate to talk to mister
Speaker 2: Gounkalas about yen that is between the major banks and
Speaker 2: the Bank of Japan and the Ministry of Finance. George,
Speaker 2: the challenge is that companies are having. Is it just
Speaker 2: because after inflation the real yield is two point two
Speaker 2: one percent? Does that just make it harder to do business?
Speaker 5: Good morning, Tom, Good morning everyone. Good to be honest
Speaker 5: with your listeners. I do think that there's a number
Speaker 5: of things working. Yes, real rates do matter. In general,
Speaker 5: rates matter. Overall, we're starting to feel the full brunt
Speaker 5: of these higher debt servicing costs, especially for the more
Speaker 5: smaller mid sized businesses, but even for the large corporates
Speaker 5: that really uh, those that had pricing powers. Some still do.
Speaker 5: But as you've been reporting all morning long, Coca Cola, Yeah,
Speaker 5: even if yeah, if you have pricing power. You can
Speaker 5: kind of pass it through, but everyone else isn't to
Speaker 5: realize that you can't just pass it through. So you're
Speaker 5: losing your earnings momentum that we have for the last
Speaker 5: three years. So inflation helped in many ways kind of
Speaker 5: to mask that, lifted all boats in a very odd
Speaker 5: way for earnings. And now the real costs with the
Speaker 5: FED raising rates as much as they did, real rates
Speaker 5: matter and they start to bite now.
Speaker 4: So George here, we're probably roughly halfway through earnings here
Speaker 4: for the S and P five hundred this cycle. Any
Speaker 4: takeaways here, because again, like as Thomas calling a for
Speaker 4: Coca Cola, some companies still have a lot of pricing
Speaker 4: power out there.
Speaker 5: Yeah, and look, the same sort of repeat story around tech.
Speaker 5: We get misses here and there, but by and large
Speaker 5: it texts another area that's lot of pricing power and
Speaker 5: low overall kind of service costs. So yeah, I feel
Speaker 5: like we haven't seen a real new trend forming, but
Speaker 5: it's building upon the idea that we're we're on the
Speaker 5: on the other side of almost going back to the
Speaker 5: pre twenty twenties, if I can kind of say that,
Speaker 5: I mean back to the way things used to be
Speaker 5: where it's gonna be.
Speaker 2: Those with power and now, folks, we descend the cone
Speaker 2: of silence, just like Get Smart years ago. Because there's
Speaker 2: a FED meeting tomorrow, George can gov us. What is
Speaker 2: Powell not going to say at the FED meeting?
Speaker 5: Well, we think that he will avoid saying that hikes
Speaker 5: are on the table, that there there anything goes, or
Speaker 5: that policy can be adjusted both up and down. We
Speaker 5: think he'll try to avoid doing that, although I wouldn't
Speaker 5: be surprised if the Press Corps tries to ask him.
Speaker 2: And Mike McKee would ask him, is it a possibility,
Speaker 2: as Lindsey Piggs, as Stephel says, as you really should
Speaker 2: raise rates, that's not gonna happen.
Speaker 5: Joy which that's not gonna happen. I mean, if I'd
Speaker 5: rather stay on hold for longer then end up let's
Speaker 5: say that we do get a slow down in the
Speaker 5: economy the next six months to a year, they will
Speaker 5: end up owning it for hiking last minute. So they'd
Speaker 5: rather just do nothing to stay on hole for longer.
Speaker 2: Tomorrow, Pharaoh Bramo in myself the FED deicides we return.
Speaker 2: This is part of my eighty hundred page agreement of course,
Speaker 2: most of it's on the food court. But with the
Speaker 2: FED decides tomorrow, we look forward to that. You will
Speaker 2: see that out on YouTube Live Bloomberg Podcast, that's a
Speaker 2: good place to see this is on YouTube tomorrow. The
Speaker 2: FED deicides at one thirty Paul.
Speaker 4: So, George, what do you what are you thinking about here?
Speaker 4: Because we're gonna have the FED either holding rates or
Speaker 4: at some point later in near cutting rates. We have
Speaker 4: the European banks probably cutting rates. Here Where do we
Speaker 4: go here? I mean, are you kind of leaning more
Speaker 4: towards you know, equities fixed income? Where do you think
Speaker 4: the opportunities are for the next six to twelve months.
Speaker 5: I think buying the dips, buying the dips and have
Speaker 5: to be significant dips in fixed income, and we're starting
Speaker 5: to get there. I mean, look, the dollar can be
Speaker 5: the wrecking ball if you get the ECB going one
Speaker 5: way and the FED going the other way, and Bank
Speaker 5: of Japan is reluctant to raise rates. I mean, we
Speaker 5: really have like a dollar is the only game in town.
Speaker 5: And and when the dollar strengthens it causes issues around
Speaker 5: the world for both corporates that translate back earnings and
Speaker 5: a number of other things. In terms of dollar liquidity.
Speaker 5: So I'm really focusing on the dollar and the ten
Speaker 5: year treasury. Those are the two most important indicators. I
Speaker 5: mean oil as a kind of third, distant third, but
Speaker 5: but it's a dollar in the ten year. If the
Speaker 5: tenure makes a run above four seventy five and doesn't
Speaker 5: slow down, that's going to hurt equities and might be
Speaker 5: buying opportunity for bonds.
Speaker 2: Tomorrow with the Fed, is a two year of value
Speaker 2: to watch? We have the sweeny five percent level right
Speaker 2: now four point ninety seven percent. Is it valid to
Speaker 2: use the two year, George Congalvas? Is it FED barometer?
Speaker 5: You could always use a two year, But I think
Speaker 5: that they've now like almost what they did last year
Speaker 5: around August September October when we last spoke about these things.
Speaker 5: The bear steep in her and the long term rates
Speaker 5: will matter more because we've had rates under the FED
Speaker 5: funds from all this period, So the thing year won't
Speaker 5: matter as much. It's going to be if the ten
Speaker 5: years's moving more.
Speaker 2: Okay, George, thank you so much. Georg Kankovas with his
Speaker 2: MUFG greatly greatly appreciate that we do economics, finance, investment
Speaker 2: in international relations. We do politics. We've tried to stay
Speaker 2: away from some of the Washington story. Everyone just covering it,
Speaker 2: covering it, covering it, including an encyclopedic. Now it's Laura Davison.
Speaker 2: She spoiled the short straw right now, and we have
Speaker 2: to ask her about this breaking news of the former
Speaker 2: president of the United States, Donald Trump. And let me
Speaker 2: quote exactly Donald Trump. This is our Patricia Hurtado, who's
Speaker 2: incredibly experienced. Donald Trump was found in contempt to court
Speaker 2: and find nine thousand after New York judge overseeing his
Speaker 2: criminal hush money case ruled. The former president repeatedly blasted
Speaker 2: key trial witnesses and social media and violation of a
Speaker 2: gag order. Laurie, I know you're unprepared for this and
Speaker 2: not writ in, but at the same time you followed
Speaker 2: it tick by tick. What are the political ramifications to
Speaker 2: the former president? Does this help him or hinder him?
Speaker 2: To have this contempt of court?
Speaker 6: This really shows that the judge is, you know, not
Speaker 6: afraid to kind of follow up on what she said.
Speaker 6: The punishment might be so this, you know, Trump, whenever
Speaker 6: he is punished in some way, whether it's an indictment,
Speaker 6: this case, he's able to fundraise off of it and
Speaker 6: bring in some money. However, politically, whether this you know,
Speaker 6: helps him more broadly, you know, a kind of an
Speaker 6: electoral sense that still remains to be seen. You know,
Speaker 6: we could start to see indications here that the judge
Speaker 6: is not going to rule in Trump's favor, and we
Speaker 6: know that if Trump is convicted, a majority of swing
Speaker 6: state voters say they won't vote for him.
Speaker 2: The exhausting news flow that's out there, are people like
Speaker 2: you within the Beltway. Are they transfixed by these trials
Speaker 2: or are they separate from other major political issues.
Speaker 6: I think that right now the trial is the is
Speaker 6: the main political issue for Trump. You know, it's basically
Speaker 6: how he's campaigning. He's in court most days. He's you know,
Speaker 6: making this part of a key part of his campaign strategy.
Speaker 6: All these appearances he's done around New York. You know,
Speaker 6: we'll see him on the campaign trail out in the
Speaker 6: battleground states tomorrow for the first time in several weeks.
Speaker 6: So he's going to Michigan and Wisconsin. But even there
Speaker 6: he's talking a lot about these trials, right you know,
Speaker 6: calling him the witch hunt, that sort of thing, and
Speaker 6: Paul I.
Speaker 2: Was struck this week, and I believe it was to
Speaker 2: see him meeting with Governor DeSantis down in Florida. I mean,
Speaker 2: think about it. The guy's working three or four days
Speaker 2: up here. We see it with midtown traffic, frike tower
Speaker 2: locked up where he's living, I assume, and then he
Speaker 2: you know, he's working the weekend down in Florida. It's remarkable.
Speaker 4: Yeah, absolutely so, Lauren, let's talk about what's happening in
Speaker 4: the Middle East.
Speaker 5: Here.
Speaker 4: We have Second Harry Blincoln, I guess, back in the
Speaker 4: Middle East trying to broker some type of negotiation here.
Speaker 4: What's the feeling with they need administration as to the
Speaker 4: role it can play and how this might play out
Speaker 4: over the coming days and weeks.
Speaker 6: So the administration is hopeful that a deal is coming together.
Speaker 6: You know, they've been, you know, sort of pushing for this.
Speaker 6: You know, we heard yesterday you know, blink and talk
Speaker 6: about how you know, it's really just up to Hamas
Speaker 6: to accept this deal. You know. The idea here is
Speaker 6: that there would be a long ceasefire, you know, a
Speaker 6: hostage deal, and it would really turn down the temperature
Speaker 6: on what is both you know, a been a major
Speaker 6: problem for the administration, and both have broad as well
Speaker 6: as domestically, as the protest on college campuses have really
Speaker 6: rammed up and become both a with a political problem
Speaker 6: for them as well as you know, kind of a
Speaker 6: crisis on some of these campuses as they're dealing with
Speaker 6: you know, how to go about, you know, handling the
Speaker 6: protest and you know, how to discipline students.
Speaker 4: So, have we heard anything from the administration about some
Speaker 4: of these protests on the college campuses. I mean, it's
Speaker 4: it's obviously a very fluid situation and strong feelings on
Speaker 4: both sides, But if we heard anything from the administration
Speaker 4: and is there any sense that maybe impacting their strategy.
Speaker 6: The administration has been quite quiet about this. You know,
Speaker 6: we've heard you know, Biden say that you know that
Speaker 6: that you know, anti Semitism as bad and students, you know,
Speaker 6: should you know, be refraining from that sort of rhetoric
Speaker 6: and pushing back on some of these things. However, the
Speaker 6: campaign has kind of, you know privately been saying, look,
Speaker 6: you know, this isn't really going to affect our you know,
Speaker 6: electoral chances. People put on the economy, not on board policy,
Speaker 6: and they're not saying this is a big drag on them,
Speaker 6: comfort ball.
Speaker 4: Laura.
Speaker 2: One find of question. We know you got to go
Speaker 2: to Breaking News. What how did the president do with
Speaker 2: the White House Correspondence dinner. What was the grade score
Speaker 2: that you and others would give him of this inside
Speaker 2: Washington event.
Speaker 6: You know, this was really uh, you know, a sort
Speaker 6: of his next big speech, you know, kind of after
Speaker 6: you at least kind of for the general audience, after
Speaker 6: the State Union. And you know, he started out, you know,
Speaker 6: you know, cracking jokes, making of a Trump, of Colin Jose,
Speaker 6: of the press, but then pivoting into this more serious
Speaker 6: message about democracy and you know that perceived dangerous that
Speaker 6: that Trump poses. You know, for him, it was a
Speaker 6: good night, less so for Colin Jos who was more
Speaker 6: roasted and criticized for his performance.
Speaker 2: Laura, Well, let's you go to Breaking News, Lord Davidson
Speaker 2: in Washington with our team here and again to get
Speaker 2: to that news. Let me get it up here exactly, Paul,
Speaker 2: I'm remiss not to have it up. The former president
Speaker 2: of the United States, Donald Trump, finned nine thousand dollars
Speaker 2: for violating gag order in a hush money trial.
Speaker 3: That from Patricia Hurtado.
Speaker 2: On the front pages today. It's an active front pages
Speaker 2: because Lisa is back. What do we approve yesterday? Lisa
Speaker 2: John Tucker is no Lisa Matayo.
Speaker 3: What do you got?
Speaker 7: We got a lot in store for you.
Speaker 8: First of all, Comcast NBC Universal, they really want to
Speaker 8: get into NBA games. They're willing to offer big Bucks
Speaker 8: two and a half billion dollars a year to air
Speaker 8: a package of NBA games, So they really want to
Speaker 8: get into this playoff, regular season games. They'd appear in
Speaker 8: NBC as well as their peacock streaming service.
Speaker 7: Warner brother Discovery. They're really fighting to keep those rights.
Speaker 7: They want to keep them.
Speaker 2: Your real house.
Speaker 4: Warner Brothers Discovery TNT has had the NBA for decades.
Speaker 4: I mean, so they haven't really built up a nice,
Speaker 4: nice franchise here, but it's gonna and I think they're
Speaker 4: gonna have right of first refusal here. But Comcast Universal
Speaker 4: is making a big bid to kind of get into
Speaker 4: the NBA because my my questions. I can't wait to
Speaker 4: see what the w NBA rights go for now to
Speaker 4: Kaylan Clark and all that kind of stuff. Now they're
Speaker 4: under a longer term contract, but I think the WNBA
Speaker 4: may try to come back and renegotiate.
Speaker 2: Why are they doing ity bitty moves. Why don't they
Speaker 2: just come in and say, we have ka jillions of
Speaker 2: dollars we want to do in Comcast streamers.
Speaker 4: Streamers. Yeah, yeah, they haven't had You're exactly right, Tom,
Speaker 4: they haven't really jumped in full force yet into programming.
Speaker 4: But you know, most expectations that are in the NFL,
Speaker 4: which has the big, big price tags, a lot of
Speaker 4: that is going to go streaming over the next five
Speaker 4: plus years.
Speaker 2: Next.
Speaker 8: All right, we just heard McDonald's results, right, reported this
Speaker 8: this morning. Now we're learning the Wall Street journals reporting
Speaker 8: that they want to expand in China more than ten
Speaker 8: thousand by the end of twenty twenty eight. And this
Speaker 8: is after spending one point eight billion to buy back
Speaker 8: a bigger slice of the business in China. So a
Speaker 8: couple challenges though. There's a rival tasty and that's there.
Speaker 8: They offer locals that local move with, you.
Speaker 7: Know, burgers made of duck and tofu and things like that.
Speaker 4: They just go in with their regular McDonald's menu.
Speaker 8: They'll be fine, yes, yes, But then then you have
Speaker 8: Young China though, who operates KFC Pizza Hud though they're
Speaker 8: they're in China and they're big too, so that's another competition.
Speaker 8: And then Starbucks two has big China plans.
Speaker 4: So there may be a technology cold war between China
Speaker 4: and the West, But when it comes to food, When
Speaker 4: it comes to food.
Speaker 2: No, they have this double chicken burger. It's a popular
Speaker 2: menna featuring chicken patties, a let us sushwan sauce on
Speaker 2: a briosh bun. They have regional dishes kanji red bean,
Speaker 2: boba te after thought, would love that spicy mcwings, a
Speaker 2: Chris cut fries in bizarre bizarre como meal. There we go,
Speaker 2: that's what it says.
Speaker 8: But you're right, Paul, though, China the fifth largest market
Speaker 8: by sales global for burger fast food restaurants, growing six
Speaker 8: percent a year, which is faster than the US.
Speaker 4: Yeah, they're like everybody. Everybody say, everybody wants a good the.
Speaker 2: China Optimists, Elizabeth Economy, and the Foreign Affairs. I'm reading
Speaker 2: it right now, just you know. It's her first swarry
Speaker 2: back from working with the Romando e commerce and she says,
Speaker 2: I'm sorry, it's China, Get over it. It's ginormous. Yeah,
Speaker 2: that's one of the basic things. Next.
Speaker 8: Now, I mean, while Subway, you know the sandwich Chaine
Speaker 8: that was exploding all over the place, it's starting to
Speaker 8: shrink its chains in by four hundred and forty three
Speaker 8: stores in the US. That was what it's strunk twenty
Speaker 8: twenty three subways eight straight year of shrinking at store.
Speaker 7: Now, this is from analysts telling.
Speaker 8: The New York Post that it's going to even worse
Speaker 8: because of California's minimum wage law, so they could shrink
Speaker 8: their subway chains even more. I'm a Jersey Mike's girl,
Speaker 8: so yeah, got.
Speaker 3: That, arou.
Speaker 4: But they're more. I mean, when you think about the
Speaker 4: fast food locations around the country, subways number one, like
Speaker 4: more than McDonald's. I didn't know that until just recently.
Speaker 4: Correct correct subways everywhere.
Speaker 2: Okay, I've only been in a few times, and every
Speaker 2: time you order something, I'm still hungry. I don't know
Speaker 2: what that.
Speaker 7: Means because they don't pack their sandwiches with enough meat.
Speaker 7: Just my personal opinion.
Speaker 2: I'm asking, I don't know, I'm just you know, you.
Speaker 4: Know, here's about the minimum wage in California. After learning
Speaker 4: in the fall that the minimum wage was increasing, Subway
Speaker 4: locations started raising prices, with some hiking them as much
Speaker 4: as seven to ten percent.
Speaker 2: One of the Chipotle items is salad that everybody orders
Speaker 2: is thirty six dollars in California.
Speaker 7: In California, Yeah.
Speaker 2: Because of the there was a you know, lead article
Speaker 2: in one of the million.
Speaker 4: I'm still shocked at my fourteen dollars Miller life at
Speaker 4: a dive Jersey shore bar this weekend. I'm still shocked
Speaker 4: square card exactly.
Speaker 7: All right.
Speaker 8: A warning out there for young folks in college or
Speaker 8: getting ready to graduate who are looking for a job.
Speaker 8: There are some scams out there. They're targeting these young
Speaker 8: college graduates. They're using information to impersonate their school dean
Speaker 8: or professor that the kid knows, and they're telling them
Speaker 8: that they've recommended for them for this job. So they're
Speaker 8: hacking into professors emails or they're creating these fake emails,
Speaker 8: but the goal is to get the student to apply
Speaker 8: for the job and then steal their identity bank information.
Speaker 8: They're asking these kids to put up money for home
Speaker 8: office equipment. There was one student who dished out money
Speaker 8: for a laptop and software almost two thousand dollars. So
Speaker 8: it's just a warning. They're putting out there. The FTC
Speaker 8: actually posted that warning on its website too, So it's tough.
Speaker 8: These kids are looking for a job, you know, they
Speaker 8: get something and they're like excited about it, and then
Speaker 8: it turned out to be a scams live chat.
Speaker 2: Someboy is twelve dollars now is five dollars foot long
Speaker 2: five years ago. I remember it's a twelve dollars foot.
Speaker 4: Line that's inflation, which you can use the college thing.
Speaker 2: I mean, I'm getting bombarded by this. I can't imagine
Speaker 2: what the kids and others are the whole Your email, folks,
Speaker 2: be careful out there.
Speaker 4: Yeah, and text as well. They're they're going through your
Speaker 4: text as well.
Speaker 2: They even get through that. We have a very sophisticated
Speaker 2: system at Bloomberg, thank you, mister, and it gets through that.
Speaker 2: I even rarely at Bloomberg, I even get.
Speaker 4: Yeah, yeah, I just told my kids on the phone.
Speaker 4: If you don't know exactly, if it's not in your
Speaker 4: library and your book, don't answer it. Don't respond if
Speaker 4: you don't know. I'm shocked that people I'll hear them
Speaker 4: on the train and or on the phone say hello hello.
Speaker 4: So you actually answer a phone call from somebody you
Speaker 4: don't know who does that anymore.
Speaker 8: I know, but I get the geek squad, the FedEx emails,
Speaker 8: like all those, and try to click.
Speaker 1: On the link.
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