1
00:00:02,640 --> 00:00:05,320
Speaker 1: Welcome to the Bloomberg Penel Podcast. I'm Paul swing you,

2
00:00:05,360 --> 00:00:07,680
Speaker 1: along with my co host Lisa Brahma wits. Each day

3
00:00:07,720 --> 00:00:10,240
Speaker 1: we bring you the most noteworthy and useful interviews for

4
00:00:10,280 --> 00:00:12,520
Speaker 1: you and your money, whether at the grocery store or

5
00:00:12,560 --> 00:00:15,480
Speaker 1: the trading floor. Find a Bloomberg Penl podcast on Apple

6
00:00:15,520 --> 00:00:17,960
Speaker 1: podcast or wherever you listen to podcasts, as well as

7
00:00:17,960 --> 00:00:21,480
Speaker 1: at Bloomberg dot com. Bernie Sanders emerged the front runner

8
00:00:21,520 --> 00:00:25,480
Speaker 1: for the Democratic primary after the New Hampshire election yesterday.

9
00:00:25,880 --> 00:00:28,200
Speaker 1: There is a question what it means for Wall Street

10
00:00:28,240 --> 00:00:31,440
Speaker 1: and right now it seems like the market just doesn't

11
00:00:31,480 --> 00:00:33,960
Speaker 1: really care. We've got new highs and the NASDAC and

12
00:00:34,000 --> 00:00:36,199
Speaker 1: the SMP and this is different from Senator war and

13
00:00:36,280 --> 00:00:38,360
Speaker 1: when she was taking the lead there seemed to be

14
00:00:38,479 --> 00:00:41,599
Speaker 1: a more negative effect on markets near Kaisar has been

15
00:00:41,640 --> 00:00:45,480
Speaker 1: tracking this columnist for Bloomberg Opinion, also founder of Unison Advisers,

16
00:00:45,720 --> 00:00:48,320
Speaker 1: joining us from A nine and studio in Washington, d C.

17
00:00:48,760 --> 00:00:52,360
Speaker 1: New Are you surprised at the market's complacency about the

18
00:00:52,400 --> 00:00:56,120
Speaker 1: potential shift to a different form of populism should Bernie

19
00:00:56,160 --> 00:01:00,200
Speaker 1: Sanders win high? Lisa, I am surprised in the US

20
00:01:00,280 --> 00:01:02,920
Speaker 1: that the narrative seems to be that if Bernie Sanders wins,

21
00:01:02,920 --> 00:01:05,120
Speaker 1: the market's going to tank, and so I would think

22
00:01:05,120 --> 00:01:07,800
Speaker 1: that that sort of um, that sentiment would weave its

23
00:01:07,800 --> 00:01:10,080
Speaker 1: way into the market. On the other hand, you know,

24
00:01:10,160 --> 00:01:13,040
Speaker 1: as I wrote in my column today, I actually think

25
00:01:13,080 --> 00:01:15,920
Speaker 1: that if Sanders wins, that could give the market a lift.

26
00:01:16,400 --> 00:01:18,800
Speaker 1: And it's possible that the market is just rejecting the

27
00:01:18,800 --> 00:01:21,319
Speaker 1: popular narrative, that the market is just not listening to

28
00:01:21,360 --> 00:01:24,520
Speaker 1: what everyone else is saying. It's interesting with you know,

29
00:01:24,560 --> 00:01:28,280
Speaker 1: a populist in the White House. Um, you know, like

30
00:01:28,840 --> 00:01:31,280
Speaker 1: Bernie Sanders, what is the when you when you talk

31
00:01:31,319 --> 00:01:34,440
Speaker 1: to market participants, investors, did they think that's good for

32
00:01:34,920 --> 00:01:39,120
Speaker 1: growth or not? You know, there seems to be just

33
00:01:39,440 --> 00:01:41,840
Speaker 1: a lot of from from the feedback that I get

34
00:01:41,959 --> 00:01:44,080
Speaker 1: and and the conversations that I'm having, there just seems

35
00:01:44,080 --> 00:01:48,080
Speaker 1: to be a ton of barrish response around Sanders in general, Um,

36
00:01:48,240 --> 00:01:51,200
Speaker 1: bad for the economy, bad for acid price, is bad

37
00:01:51,240 --> 00:01:54,040
Speaker 1: for you know, pretty much anything you can imagine. UM

38
00:01:54,040 --> 00:01:56,800
Speaker 1: that has to do with free markets. And I'm not

39
00:01:56,840 --> 00:02:00,040
Speaker 1: necessarily saying that that view is wrong, But when I

40
00:02:00,040 --> 00:02:01,800
Speaker 1: am saying is that one of the things I think

41
00:02:01,800 --> 00:02:03,760
Speaker 1: we can be sure about with Sanders is that he's

42
00:02:03,760 --> 00:02:07,160
Speaker 1: going to spend a lot, and he's proposing to finance

43
00:02:07,200 --> 00:02:09,800
Speaker 1: some of that with higher taxes. But that seems to

44
00:02:09,800 --> 00:02:12,200
Speaker 1: me is not going to pay for you know, college

45
00:02:12,240 --> 00:02:14,359
Speaker 1: for all and housing and health care for all and

46
00:02:14,400 --> 00:02:16,400
Speaker 1: a green New Deal, and so he's gonna have to

47
00:02:16,480 --> 00:02:19,919
Speaker 1: run up the federal deficits, the fiscal deficits we've had

48
00:02:20,120 --> 00:02:23,919
Speaker 1: in recent years, and in general, that should stimulate the economy.

49
00:02:24,000 --> 00:02:26,560
Speaker 1: Not heard it. It's interesting. I was reading a story

50
00:02:26,600 --> 00:02:29,160
Speaker 1: on the Bloomberg and it talks about all the reasons

51
00:02:29,200 --> 00:02:33,280
Speaker 1: why markets may be dismissing the potential for another version

52
00:02:33,440 --> 00:02:37,000
Speaker 1: of populism. Uh. And one of them is that Bernie

53
00:02:37,040 --> 00:02:39,800
Speaker 1: Sanders won't get anything done if he gets elected, because

54
00:02:39,800 --> 00:02:42,960
Speaker 1: you'll have a split Senate, uh where spen a senate

55
00:02:42,960 --> 00:02:47,079
Speaker 1: in Congress Senate and House of Representatives Democrat versus Republican.

56
00:02:47,480 --> 00:02:50,639
Speaker 1: Other people saying, well, he'll just spend more. Which is it?

57
00:02:50,800 --> 00:02:52,760
Speaker 1: Do you think that he will actually be effective in

58
00:02:52,840 --> 00:02:56,600
Speaker 1: passing these proposals? You know, that's such an interesting question

59
00:02:56,680 --> 00:02:59,560
Speaker 1: because I think, you know, obviously it's very hard to

60
00:02:59,600 --> 00:03:03,920
Speaker 1: know for sure, But I think the baseline case is

61
00:03:03,960 --> 00:03:06,080
Speaker 1: that the things that people worry about the most with

62
00:03:06,080 --> 00:03:09,920
Speaker 1: Bernie Sanders nationalizing, you know, broad swaths of our economy

63
00:03:10,400 --> 00:03:13,240
Speaker 1: UM is not going to happen precisely because of what

64
00:03:13,280 --> 00:03:14,760
Speaker 1: you say, Lisa, that he's just not going to have

65
00:03:14,800 --> 00:03:17,959
Speaker 1: the legislative muscle or I think the popular support to

66
00:03:17,960 --> 00:03:20,080
Speaker 1: be able to do it. But I think he can

67
00:03:20,120 --> 00:03:23,720
Speaker 1: do things around the edges that would increase spending UM,

68
00:03:23,800 --> 00:03:28,320
Speaker 1: you know, like maybe subsidies for for for college, maybe

69
00:03:28,360 --> 00:03:30,959
Speaker 1: some new green, new deal initiatives. So I don't think

70
00:03:31,240 --> 00:03:33,079
Speaker 1: if he becomes president, I don't think that he's gonna

71
00:03:33,080 --> 00:03:34,520
Speaker 1: be able to do as much as people fear, but

72
00:03:34,560 --> 00:03:36,360
Speaker 1: I think he will be able to do enough that

73
00:03:36,520 --> 00:03:39,040
Speaker 1: spending can be expected to go up. What about the

74
00:03:39,080 --> 00:03:43,560
Speaker 1: narrative that uh A Bernie Sanders as a Democrat to

75
00:03:43,600 --> 00:03:45,720
Speaker 1: go up against Trump is in fact bullish for the

76
00:03:45,760 --> 00:03:49,000
Speaker 1: market because the expectation is that Trump will win handily

77
00:03:49,000 --> 00:03:52,600
Speaker 1: in what former years of pro business type of uh

78
00:03:52,640 --> 00:03:55,920
Speaker 1: of an administration. You know, that seems to be the consensus.

79
00:03:55,960 --> 00:03:58,680
Speaker 1: I think now that that the reason markets are quiet

80
00:03:58,720 --> 00:04:01,680
Speaker 1: is because they're just not buying UM. The the Bernie

81
00:04:01,760 --> 00:04:04,800
Speaker 1: candidacy It'll be interesting to see how this unfold. I mean,

82
00:04:04,840 --> 00:04:06,880
Speaker 1: obviously he's gaining a lot of momentum if he wins

83
00:04:06,880 --> 00:04:09,360
Speaker 1: in the next couple of primaries, and there starts to

84
00:04:09,360 --> 00:04:13,360
Speaker 1: be some consensus around him as the nominee um and

85
00:04:13,440 --> 00:04:15,200
Speaker 1: the betting markets start to say maybe he has a

86
00:04:15,280 --> 00:04:18,960
Speaker 1: chance against Trump Um, then then maybe the market changes,

87
00:04:19,279 --> 00:04:20,680
Speaker 1: you know, one of the things to look at. You know,

88
00:04:20,680 --> 00:04:23,839
Speaker 1: people forget that Bernie Sanders upset Hillary Clinton in sixteen

89
00:04:23,880 --> 00:04:26,800
Speaker 1: in Michigan, and and it's possible that Bernie Sanders will

90
00:04:26,800 --> 00:04:29,680
Speaker 1: be more popular in the Upper Midwest than anyone currently believes.

91
00:04:30,360 --> 00:04:32,200
Speaker 1: And if that is the case, If that appears to

92
00:04:32,240 --> 00:04:34,640
Speaker 1: be the case, I would expect some sort of reaction

93
00:04:34,680 --> 00:04:37,360
Speaker 1: from markets. So look out for that near. I've heard

94
00:04:37,440 --> 00:04:40,680
Speaker 1: everyone make an argument about why a potential Bernie Sanders

95
00:04:40,800 --> 00:04:44,839
Speaker 1: or Senator Warren when would be good or bad for markets.

96
00:04:44,839 --> 00:04:48,279
Speaker 1: How effective is it to bet on elections? It's a

97
00:04:48,279 --> 00:04:51,480
Speaker 1: horrible idea, Lisa Um, you know, so, I mean, is

98
00:04:51,520 --> 00:04:53,160
Speaker 1: it even worth it? I mean, because a lot of

99
00:04:53,160 --> 00:04:55,880
Speaker 1: people are paying attention and expecting more volatility ahead of

100
00:04:55,920 --> 00:04:59,880
Speaker 1: the November election this year. Yeah, I don't, I don't.

101
00:05:00,000 --> 00:05:02,240
Speaker 1: I don't think in general that people ought to uh

102
00:05:02,520 --> 00:05:05,080
Speaker 1: out to make their out of invest based on their

103
00:05:05,120 --> 00:05:07,880
Speaker 1: predictions of the future, because none of us are very

104
00:05:07,960 --> 00:05:10,599
Speaker 1: particularly good at predicting. Um. You know, that's just I

105
00:05:10,640 --> 00:05:14,159
Speaker 1: think just ranks speculation. But I think it is useful

106
00:05:14,240 --> 00:05:16,360
Speaker 1: to consider when when there's a narrative, and one of

107
00:05:16,360 --> 00:05:17,840
Speaker 1: the reasons I wrote this column is when there's a

108
00:05:17,960 --> 00:05:20,880
Speaker 1: narrative that seems to to pervade the market, um, which

109
00:05:20,920 --> 00:05:23,800
Speaker 1: I think there is a narrative about Sanders wrecking the market. Um,

110
00:05:23,839 --> 00:05:25,680
Speaker 1: I think it's helpful to perhaps look at the other

111
00:05:25,720 --> 00:05:27,400
Speaker 1: side of it and say, wait a second, maybe the

112
00:05:27,400 --> 00:05:30,040
Speaker 1: assumptions that you're making are not going to work out well. Um.

113
00:05:30,080 --> 00:05:32,080
Speaker 1: And I'm hoping that that will make you know, that

114
00:05:32,080 --> 00:05:34,599
Speaker 1: would inject some humility and some of the predictions that

115
00:05:34,600 --> 00:05:37,000
Speaker 1: we're hearing near k Sor Thank you so much for

116
00:05:37,200 --> 00:05:39,440
Speaker 1: joining us near as a calumnist for Bloomberg Opinion also

117
00:05:39,520 --> 00:05:42,520
Speaker 1: founder of Union Advisors. Joining us from the Bloomberg ninety

118
00:05:42,800 --> 00:05:45,280
Speaker 1: one studio in Washington, d C. You can find all

119
00:05:45,279 --> 00:05:47,760
Speaker 1: the opinion stuff Bloomberg dot com, Slash Opinion, as well

120
00:05:47,760 --> 00:05:53,600
Speaker 1: as O P. I. N. Go on the terminal well.

121
00:05:53,600 --> 00:05:58,080
Speaker 1: With global yields at exceptionally low levels around the world,

122
00:05:58,160 --> 00:06:01,599
Speaker 1: including some negative yield in place like Germany, Switzerland and Japan,

123
00:06:01,640 --> 00:06:05,039
Speaker 1: where does he fixed income manager go for yield? I

124
00:06:05,040 --> 00:06:06,920
Speaker 1: think our next guests can help us out here. Paul

125
00:06:06,960 --> 00:06:10,120
Speaker 1: Brain had a fixingcoming Newton Investment Management with about sixty

126
00:06:10,200 --> 00:06:12,880
Speaker 1: six billion dollars under management. He's based in London, but

127
00:06:12,960 --> 00:06:15,960
Speaker 1: joining us here in our Bloomberg Interactor Broker studio. His

128
00:06:16,000 --> 00:06:19,680
Speaker 1: last name is actually Brain. No I was I was

129
00:06:19,720 --> 00:06:21,440
Speaker 1: just gonna let it go and just let him. I'm

130
00:06:21,480 --> 00:06:23,200
Speaker 1: not going to let that go? Was it? How was

131
00:06:23,200 --> 00:06:27,520
Speaker 1: it growing up with the last name brain? Damn challenging, challenge,

132
00:06:28,520 --> 00:06:30,920
Speaker 1: So one of those names that people don't forget right,

133
00:06:31,560 --> 00:06:34,239
Speaker 1: People just don't believe it's brain. It was called me Brian.

134
00:06:36,000 --> 00:06:38,280
Speaker 1: I would the pressure to get me, the pressure to

135
00:06:38,320 --> 00:06:39,960
Speaker 1: get good marks in school? I wink should have been

136
00:06:39,960 --> 00:06:43,400
Speaker 1: a surgeon that would have made it so Mucheesi exactly. So,

137
00:06:43,480 --> 00:06:46,880
Speaker 1: Paul again, talk to us about kind of the fixed

138
00:06:46,920 --> 00:06:49,719
Speaker 1: income markets. You're out there, you're supposed looking for yield.

139
00:06:50,400 --> 00:06:51,800
Speaker 1: Where do you go, what do you do? How do

140
00:06:51,839 --> 00:06:55,400
Speaker 1: you frame it up for your portfolio? Well? Yeah, I'm

141
00:06:55,440 --> 00:06:57,839
Speaker 1: the first thing to let's say, obviously yould aren't always returns,

142
00:06:57,960 --> 00:07:00,839
Speaker 1: so we all we are using comment bond that perhaps

143
00:07:00,880 --> 00:07:03,960
Speaker 1: do have very low yields. We've we try to stay

144
00:07:03,960 --> 00:07:08,239
Speaker 1: clear those negative yielders, and there are alternatives to European yields.

145
00:07:08,240 --> 00:07:10,560
Speaker 1: You've got over to US yields, Australia, New Zealand and

146
00:07:10,840 --> 00:07:13,520
Speaker 1: a few there are some European countries with positive yields

147
00:07:13,840 --> 00:07:16,920
Speaker 1: um but there's also credit, there's emerging markets. We have

148
00:07:17,520 --> 00:07:21,160
Speaker 1: strategies that are opportunistic and we tend to shop around

149
00:07:21,160 --> 00:07:23,840
Speaker 1: the globe, so we are looking for those markets that

150
00:07:24,080 --> 00:07:26,480
Speaker 1: still have a positive yield but also the potential breads

151
00:07:26,520 --> 00:07:29,200
Speaker 1: for yields to go lower. We don't see this environment

152
00:07:29,280 --> 00:07:31,640
Speaker 1: changing anytime soon. We're not looking for yields to back

153
00:07:31,760 --> 00:07:35,200
Speaker 1: up in any meaningful ways. So this sort of search

154
00:07:35,280 --> 00:07:38,400
Speaker 1: for yield, chase for for returns is still gonna be

155
00:07:38,400 --> 00:07:40,640
Speaker 1: with us for a while. Emerging markets was one call

156
00:07:40,720 --> 00:07:42,760
Speaker 1: heading into this year that that would be an area

157
00:07:42,760 --> 00:07:46,480
Speaker 1: that would have perform in particular local currency, emerging markets debt.

158
00:07:46,920 --> 00:07:50,440
Speaker 1: The belief also hinging on the dollar continuing to weaken

159
00:07:50,600 --> 00:07:53,000
Speaker 1: or not continuing starting a weekend, because we've seen it

160
00:07:53,360 --> 00:07:56,720
Speaker 1: near near the highs versus some peers. I'm just wondering,

161
00:07:57,240 --> 00:07:59,720
Speaker 1: we're not seeing that. How much does that change your

162
00:07:59,800 --> 00:08:04,320
Speaker 1: view on emerging markets? Um, the from a tactical point

163
00:08:04,320 --> 00:08:06,200
Speaker 1: of view, you've got to got to suggest that with

164
00:08:06,320 --> 00:08:07,920
Speaker 1: things like the virus are out out there, with the

165
00:08:08,000 --> 00:08:11,080
Speaker 1: geopolitical risk, it's quite high the dollar has a potential

166
00:08:11,160 --> 00:08:14,160
Speaker 1: to to stay firm. That is true, But is that

167
00:08:14,200 --> 00:08:16,640
Speaker 1: going to change the interest rate outlook for some of

168
00:08:16,640 --> 00:08:18,800
Speaker 1: those emerging market countries. Some of the reasons why by

169
00:08:19,120 --> 00:08:22,040
Speaker 1: local currency emerging markets is because they can cut interestrates.

170
00:08:22,400 --> 00:08:25,560
Speaker 1: It is because of course their currencies can appreciate over time.

171
00:08:25,720 --> 00:08:29,400
Speaker 1: So strategically we still like local currency markets. In fact,

172
00:08:29,440 --> 00:08:34,520
Speaker 1: we're taking advantage of weakness to to increase exposure. UM Technically,

173
00:08:34,600 --> 00:08:36,600
Speaker 1: we've also got dollars as well, so we have a

174
00:08:36,920 --> 00:08:39,480
Speaker 1: sort of a barbell approach there. So as you step

175
00:08:39,520 --> 00:08:41,800
Speaker 1: back and think about, you know where it's called eleven

176
00:08:41,880 --> 00:08:44,200
Speaker 1: years into this economic cycle here in the United States,

177
00:08:44,440 --> 00:08:47,400
Speaker 1: how do you think about allocating your fixing com portfolio

178
00:08:47,440 --> 00:08:50,679
Speaker 1: between investment grade maybe going out? You know, how you've

179
00:08:50,720 --> 00:08:52,880
Speaker 1: taken some more risk you mentioned you just meant talked

180
00:08:52,880 --> 00:08:56,400
Speaker 1: about emerging markets, how do you think about your allocation now, Well,

181
00:08:56,880 --> 00:08:59,480
Speaker 1: with the backdrop of a benign interest rate environment, that's say,

182
00:08:59,520 --> 00:09:02,120
Speaker 1: an interstrate environment that's not going to change radically one

183
00:09:02,120 --> 00:09:05,200
Speaker 1: way or the other, you can still chase after some

184
00:09:05,240 --> 00:09:07,960
Speaker 1: of those opportunities, some of those spreads. So a broad

185
00:09:08,000 --> 00:09:11,040
Speaker 1: exposure to these markets, risk markets like high yield, I

186
00:09:11,080 --> 00:09:14,199
Speaker 1: think is okay, but you have to be very selective.

187
00:09:14,240 --> 00:09:15,800
Speaker 1: I think very for a company point of view, and

188
00:09:15,800 --> 00:09:18,240
Speaker 1: from a set to point of view, the dispersion within

189
00:09:18,280 --> 00:09:20,240
Speaker 1: credit is still there. There's a there is a big

190
00:09:20,240 --> 00:09:22,679
Speaker 1: difference between the ones that are okay and the ones

191
00:09:22,720 --> 00:09:25,199
Speaker 1: that are not. We're seeing, as you saw last year,

192
00:09:25,240 --> 00:09:29,959
Speaker 1: companies suffer when they miss earnings reports and P and

193
00:09:30,040 --> 00:09:32,800
Speaker 1: L numbers. It's only credit quality problems out there that

194
00:09:32,800 --> 00:09:36,360
Speaker 1: you're seeing in your portfoliore creeping up or because again

195
00:09:36,440 --> 00:09:38,800
Speaker 1: kind of late in the cycle here and it seems

196
00:09:38,800 --> 00:09:41,440
Speaker 1: like you might have some credit quality issues. That that

197
00:09:41,600 --> 00:09:45,400
Speaker 1: is true, that's certainly keeping us not at our maximum exposure.

198
00:09:45,480 --> 00:09:48,360
Speaker 1: So it's an environment that does support risk on trades,

199
00:09:48,880 --> 00:09:51,320
Speaker 1: but we're going to be mindful of that possibility that

200
00:09:51,400 --> 00:09:54,800
Speaker 1: it's a fragile economic environment. Therefore it's a fragile environment

201
00:09:54,800 --> 00:09:57,199
Speaker 1: for credit and spreads are pretty tight. So well, well,

202
00:09:57,480 --> 00:10:00,720
Speaker 1: we're balancing some of that exposure by having some some

203
00:10:00,800 --> 00:10:04,840
Speaker 1: safe haven assets like US treasures, UM and other government

204
00:10:04,880 --> 00:10:07,600
Speaker 1: bonds with our credit exposure. When was the last time

205
00:10:07,600 --> 00:10:10,320
Speaker 1: that you changed your allocation around? Well, with the last

206
00:10:10,320 --> 00:10:13,240
Speaker 1: couple of years, I've seen as being the fairly dynamic.

207
00:10:13,280 --> 00:10:15,680
Speaker 1: The strategy we run is called dynamic, and it's lived

208
00:10:15,720 --> 00:10:18,439
Speaker 1: up to his name. Two thousand eighteen, we were very

209
00:10:19,040 --> 00:10:21,480
Speaker 1: defensive in terms of interest rate risk and credit risk,

210
00:10:21,760 --> 00:10:24,760
Speaker 1: just brought down both of those leavers, so exposure to

211
00:10:24,880 --> 00:10:28,839
Speaker 1: both of those was record lows. Two thousand nineteen, we

212
00:10:29,000 --> 00:10:31,079
Speaker 1: went back the other way, so we we we scaled

213
00:10:31,160 --> 00:10:34,120
Speaker 1: up adjuration risk, interest rate risk, and also our credit

214
00:10:34,200 --> 00:10:36,560
Speaker 1: risk by moving back into merger markets, high yield and

215
00:10:36,640 --> 00:10:40,000
Speaker 1: also government bonds at the same time. Two thousand twenties

216
00:10:40,120 --> 00:10:43,400
Speaker 1: going to be a bit more of a carry environment,

217
00:10:43,400 --> 00:10:45,720
Speaker 1: more an environment where you want to just hang onto

218
00:10:45,760 --> 00:10:48,280
Speaker 1: those returns. You're not going to get big moves and

219
00:10:48,320 --> 00:10:51,200
Speaker 1: be very particular about your security selection and your set

220
00:10:51,240 --> 00:10:53,920
Speaker 1: to selection. What could actually happen that would force you

221
00:10:54,000 --> 00:10:58,400
Speaker 1: to rethink that the two outlies to that central goldilocks

222
00:10:58,480 --> 00:11:02,240
Speaker 1: environment are of course a recession um and the opposite,

223
00:11:02,280 --> 00:11:04,800
Speaker 1: of course is a pickup and inflation. That's that's just

224
00:11:04,880 --> 00:11:06,960
Speaker 1: stating the obvious. But if we move back to a

225
00:11:07,040 --> 00:11:09,440
Speaker 1: rising intestrate environment as we saw in two thousand and eighteen,

226
00:11:09,440 --> 00:11:12,240
Speaker 1: then of course fixed income markets are going to suffer.

227
00:11:12,520 --> 00:11:16,160
Speaker 1: If we move to an environment of collapsing economies, you're

228
00:11:16,200 --> 00:11:19,560
Speaker 1: going to see credit suffer in particular. Neither those scenarios

229
00:11:19,600 --> 00:11:22,199
Speaker 1: have particularly high weights at the moment. But what we're

230
00:11:22,040 --> 00:11:24,920
Speaker 1: monitoring to see whether those two can be triggered is

231
00:11:25,400 --> 00:11:28,480
Speaker 1: it's really China. The slowdown in economic growth in China

232
00:11:28,520 --> 00:11:31,760
Speaker 1: before the virus is something that does concern us um

233
00:11:32,080 --> 00:11:35,800
Speaker 1: that's the global manufacturing base, for instance. And then the

234
00:11:35,800 --> 00:11:37,800
Speaker 1: other side of that is just the ramping up of

235
00:11:38,160 --> 00:11:41,480
Speaker 1: potential fiscal spending leading to inflation, which is a longer

236
00:11:41,559 --> 00:11:43,160
Speaker 1: term story, not one that we're hit this year, but

237
00:11:43,280 --> 00:11:46,760
Speaker 1: something to constantly monitor. Pobrain, thank you so much for

238
00:11:46,760 --> 00:11:49,640
Speaker 1: being with us. I gotta say I love your name.

239
00:11:49,720 --> 00:11:52,040
Speaker 1: I think it's absolutely wonderful. Paperin is head of fixed

240
00:11:52,080 --> 00:11:54,439
Speaker 1: income at Newton Investment Management, which is owned by b

241
00:11:54,559 --> 00:11:57,480
Speaker 1: and Y Melon and overseas about six sixty six billion

242
00:11:57,520 --> 00:12:00,280
Speaker 1: dollars of assets from whide It, normally based in London,

243
00:12:00,400 --> 00:12:03,520
Speaker 1: joining us here in our interactive broker studio. Is definitely

244
00:12:03,559 --> 00:12:06,839
Speaker 1: an interesting time to be investing in fixed income where

245
00:12:06,880 --> 00:12:10,680
Speaker 1: the income portion has been dropped off for a huge

246
00:12:10,800 --> 00:12:24,520
Speaker 1: portion of markets globally. You know, we have attention Paul

247
00:12:24,520 --> 00:12:27,319
Speaker 1: on this show where there's a lot going on in Washington,

248
00:12:27,440 --> 00:12:29,920
Speaker 1: d C. And it's hard to know when it crosses

249
00:12:30,080 --> 00:12:34,280
Speaker 1: over into the realm of markets and the broader zeitgeist

250
00:12:34,440 --> 00:12:38,000
Speaker 1: of the United States beyond the Beltway. Noah Felman joining

251
00:12:38,080 --> 00:12:41,600
Speaker 1: us on a story that does percolate on that very

252
00:12:41,679 --> 00:12:44,199
Speaker 1: much so. Noah Feldman, Professor of Law at Harvard University,

253
00:12:44,240 --> 00:12:47,840
Speaker 1: also a Bloomberg Opinion columnist, uh and Professor, I'd love

254
00:12:47,840 --> 00:12:50,240
Speaker 1: to get your take on what just happened with the

255
00:12:50,280 --> 00:12:55,079
Speaker 1: Department of Justice coming in making a recommendation to revise

256
00:12:55,200 --> 00:12:58,959
Speaker 1: the sentencing recommendation by prosecutors in the Roger Stone case

257
00:12:59,480 --> 00:13:03,760
Speaker 1: after President Trump tweeted about it, and then the subsequent

258
00:13:03,920 --> 00:13:07,400
Speaker 1: resignation of those prosecutors. Can you just give us a

259
00:13:07,440 --> 00:13:10,480
Speaker 1: sense how big of a deal is this It's a

260
00:13:10,559 --> 00:13:12,840
Speaker 1: very big deal when it comes to the independence of

261
00:13:12,840 --> 00:13:16,400
Speaker 1: the Department of Justice from political influence, especially from the president.

262
00:13:16,880 --> 00:13:18,680
Speaker 1: So what you have to understand is that you under

263
00:13:18,679 --> 00:13:21,920
Speaker 1: our constitution, the Department of Justice isn't an independent agency.

264
00:13:22,000 --> 00:13:24,920
Speaker 1: But because everyone understands that if you don't have real

265
00:13:24,960 --> 00:13:27,360
Speaker 1: independence and the people who investigate in prosecute crime, you

266
00:13:27,400 --> 00:13:29,680
Speaker 1: won't live under the rule of law. There's a strong

267
00:13:29,720 --> 00:13:33,040
Speaker 1: tradition of the executive branch respecting the judgments of the

268
00:13:33,080 --> 00:13:35,520
Speaker 1: Department of Justice. And what's bad here is not just

269
00:13:35,720 --> 00:13:39,160
Speaker 1: that the Department of Justice reversed a recommendation for a

270
00:13:39,160 --> 00:13:42,000
Speaker 1: strong sentence by its prosecutors, but that they did it

271
00:13:42,080 --> 00:13:45,800
Speaker 1: after a presidential tweet and in a case of Roger Stone,

272
00:13:46,080 --> 00:13:49,120
Speaker 1: who lied to Congress to protect the president. So it

273
00:13:49,200 --> 00:13:51,440
Speaker 1: really looks like the Department of Justice is just knuckling

274
00:13:51,559 --> 00:13:55,160
Speaker 1: under to Donald Trump, no matter what they Department Justice

275
00:13:55,200 --> 00:13:57,800
Speaker 1: may claim to the contrary. So clearly some pressure being

276
00:13:57,800 --> 00:14:02,800
Speaker 1: applied by Attorney General William barr Um. How uncommon is

277
00:14:02,840 --> 00:14:05,560
Speaker 1: it for that to occur, for the Attorney General to

278
00:14:05,640 --> 00:14:09,880
Speaker 1: insert himself or herself into a d o J proceeding

279
00:14:09,960 --> 00:14:12,800
Speaker 1: like this, Well, it's extremely uncommon for it to happen

280
00:14:12,880 --> 00:14:15,120
Speaker 1: in this way after the fact. So you might imagine

281
00:14:15,160 --> 00:14:17,160
Speaker 1: in a very very high profile case, you would go,

282
00:14:17,600 --> 00:14:19,160
Speaker 1: you know, through the chain, and someone would say, well,

283
00:14:19,200 --> 00:14:21,240
Speaker 1: let's check with the mainjustice and maybe the Attorney General

284
00:14:21,240 --> 00:14:23,920
Speaker 1: before we ask for a sentence. But what's extremely rare

285
00:14:24,000 --> 00:14:26,240
Speaker 1: is that when the Department has filed a document with

286
00:14:26,320 --> 00:14:28,440
Speaker 1: the court saying this is how many years we think

287
00:14:28,480 --> 00:14:31,560
Speaker 1: this defendant deserves, that the autorian Joe would then come

288
00:14:31,560 --> 00:14:35,120
Speaker 1: in after the fact and after a presidential tweet and say,

289
00:14:35,200 --> 00:14:38,320
Speaker 1: we're changing our mind, We're reversing ourselves, We're retracting that moment,

290
00:14:38,480 --> 00:14:41,800
Speaker 1: putting anyone that undercuts the independence of the prosecutors. And

291
00:14:41,880 --> 00:14:45,200
Speaker 1: that's why those four prosecutors all stepped down from this case.

292
00:14:45,600 --> 00:14:48,520
Speaker 1: It's essentially the closest that a government employee can come

293
00:14:48,560 --> 00:14:50,960
Speaker 1: to an official protest. It's a way of saying, Okay,

294
00:14:51,000 --> 00:14:52,600
Speaker 1: if you're you're going to do this over our heads

295
00:14:52,600 --> 00:14:54,200
Speaker 1: and we want no part of it, now, can you

296
00:14:54,240 --> 00:14:56,640
Speaker 1: give us a sense in the bigger picture, giving your

297
00:14:56,680 --> 00:15:00,440
Speaker 1: experience clerking on the Supreme Court, giving your experi arians

298
00:15:00,560 --> 00:15:04,480
Speaker 1: studying history and and Harvard, just getting a sense of

299
00:15:05,000 --> 00:15:08,120
Speaker 1: the potential implications here. I mean, you said it was

300
00:15:08,160 --> 00:15:10,240
Speaker 1: it's a really big deal, But what does that mean.

301
00:15:11,480 --> 00:15:15,479
Speaker 1: What it means is that this president is now completely

302
00:15:15,880 --> 00:15:18,240
Speaker 1: you know, feeling his capacity to do whatever he wants

303
00:15:18,280 --> 00:15:21,640
Speaker 1: in the aftermath of the failed impeachment. Um, you know,

304
00:15:21,680 --> 00:15:24,000
Speaker 1: he's going to be able to do whatever he wants.

305
00:15:24,040 --> 00:15:26,480
Speaker 1: But it more importantly, I think even more importantly than that,

306
00:15:26,560 --> 00:15:29,480
Speaker 1: in the long run, it undercuts public trust in the

307
00:15:29,560 --> 00:15:31,960
Speaker 1: FBI and the Department of Justice, and it undercuts the

308
00:15:32,040 --> 00:15:34,600
Speaker 1: basic idea that we live in a country where you

309
00:15:34,640 --> 00:15:38,400
Speaker 1: won't be prison imprisoned, or prosecuted or sentenced based on

310
00:15:38,440 --> 00:15:41,160
Speaker 1: who your friends are or whether you're in with the administration,

311
00:15:41,360 --> 00:15:43,320
Speaker 1: but rather based on whether you've broken the law and

312
00:15:43,360 --> 00:15:45,400
Speaker 1: how serious your crimes are. You know, if we lose

313
00:15:45,440 --> 00:15:48,680
Speaker 1: as a public our faith in that, then that deeply

314
00:15:48,760 --> 00:15:51,360
Speaker 1: undercuts the capacity of our country to go forward as

315
00:15:51,360 --> 00:15:53,680
Speaker 1: the rule of law country, losing the faith in it.

316
00:15:54,120 --> 00:15:56,520
Speaker 1: But there is a pushback that people have to this,

317
00:15:57,080 --> 00:16:00,440
Speaker 1: that is, it's always been this way. It's just that

318
00:16:00,560 --> 00:16:04,480
Speaker 1: President Trump is upfront with it, and there's less subtlety

319
00:16:04,680 --> 00:16:07,960
Speaker 1: about some of the machinations behind the scenes. Why we

320
00:16:08,000 --> 00:16:10,040
Speaker 1: certainly have heard that with respect some of the travel

321
00:16:10,080 --> 00:16:13,240
Speaker 1: bands and other things that they have done. Is that

322
00:16:13,320 --> 00:16:15,040
Speaker 1: the case, I mean that sort of, I don't think so.

323
00:16:15,200 --> 00:16:17,720
Speaker 1: I don't think the history bears out that claim. You know, certainly,

324
00:16:17,800 --> 00:16:20,000
Speaker 1: in all of the years that I've been exposed to

325
00:16:20,040 --> 00:16:22,400
Speaker 1: the Department of Justice and had you know, close colleagues

326
00:16:22,400 --> 00:16:26,000
Speaker 1: and friends who worked there, there's been an extraordinarily strong

327
00:16:26,160 --> 00:16:31,080
Speaker 1: tradition of prosecutorial independence, and that's been deeply eroded throughout

328
00:16:31,080 --> 00:16:33,320
Speaker 1: this administration, but especially now. And you have to add

329
00:16:33,360 --> 00:16:36,120
Speaker 1: to that the fact that this prosecution was started by

330
00:16:36,360 --> 00:16:39,720
Speaker 1: Robert Mueller's team. They filed this prosecution, and indeed several

331
00:16:39,720 --> 00:16:43,080
Speaker 1: of the prosecutors who were still involved were from Mueller's team.

332
00:16:43,120 --> 00:16:47,160
Speaker 1: That was supposed to be a special prosecutor who was independent,

333
00:16:47,200 --> 00:16:49,880
Speaker 1: who wasn't pushed around by the by the Attorney in general,

334
00:16:49,960 --> 00:16:52,240
Speaker 1: by the president. And so that was the whole point

335
00:16:52,280 --> 00:16:55,400
Speaker 1: of it. And to undercut that really doesn't have a precedent,

336
00:16:55,440 --> 00:16:58,080
Speaker 1: you know, it basically says special prosecutor isn't actually all

337
00:16:58,080 --> 00:17:01,520
Speaker 1: that independent? No, I just next thirty seconds, what's the

338
00:17:01,640 --> 00:17:05,520
Speaker 1: role if any oversight wise that Congress could I guess

339
00:17:05,600 --> 00:17:08,800
Speaker 1: exercise The most of the Congress can do at this

340
00:17:08,840 --> 00:17:12,280
Speaker 1: stage is call for an investigation. They can ask the

341
00:17:12,320 --> 00:17:16,840
Speaker 1: Attorney General and the U. S. Attorney for for Washington,

342
00:17:16,920 --> 00:17:20,359
Speaker 1: d C. To come and testify before it and ask

343
00:17:20,480 --> 00:17:24,159
Speaker 1: them how the decision process went and create greater transparency

344
00:17:24,320 --> 00:17:28,480
Speaker 1: around this. But there's really no other institutional check available,

345
00:17:28,520 --> 00:17:31,080
Speaker 1: and the ultimate check, which is impeachment, has already been

346
00:17:31,160 --> 00:17:34,280
Speaker 1: used and it didn't work. No Feldman, thanks so much

347
00:17:34,320 --> 00:17:37,080
Speaker 1: for joining us. We really appreciate your perspective. Noah Feldman's

348
00:17:37,119 --> 00:17:41,800
Speaker 1: professor law at Harvard University, also a Bloomberg Opinion columnist. UH.

349
00:17:41,840 --> 00:17:44,200
Speaker 1: He also has a witness in the House impeachment investigation,

350
00:17:44,240 --> 00:17:45,760
Speaker 1: and it was a clerk to the U. S. Supreme

351
00:17:45,800 --> 00:17:49,359
Speaker 1: Court Justice David Suitor, So lots of experience with the

352
00:17:49,480 --> 00:17:53,120
Speaker 1: law within the belt Way. You can read Noah's work

353
00:17:53,160 --> 00:17:56,960
Speaker 1: on Bloomberg Opinion at Bloomberg dot com slash opinion uh

354
00:17:57,000 --> 00:17:59,080
Speaker 1: and on the Terminal and O P I N GO.

355
00:17:59,359 --> 00:18:01,840
Speaker 1: Lots of great work that those folks do, kind of

356
00:18:01,880 --> 00:18:04,200
Speaker 1: peeling back the onion on a lot of important issues.

357
00:18:08,680 --> 00:18:13,040
Speaker 1: Tis the season of love and affection and collective guilt

358
00:18:13,119 --> 00:18:17,480
Speaker 1: and pressure to get something for your significant other. Uh,

359
00:18:17,520 --> 00:18:20,000
Speaker 1: it is Valentine's Day coming up on Friday? Are you

360
00:18:20,000 --> 00:18:23,320
Speaker 1: doing anything, Paul, I'm sure we are actually Eagles concert.

361
00:18:23,680 --> 00:18:28,000
Speaker 1: Eagles that's with the family. Okay, well, it is a question.

362
00:18:28,119 --> 00:18:29,960
Speaker 1: You know, what is sort of the appropriate gift. I

363
00:18:30,000 --> 00:18:32,879
Speaker 1: will say that. Um My older son even asked me

364
00:18:32,920 --> 00:18:34,840
Speaker 1: that at one point and I thought, oh my goodness,

365
00:18:35,200 --> 00:18:38,000
Speaker 1: I can't believe already having this conversation between us now,

366
00:18:38,000 --> 00:18:40,040
Speaker 1: someone probably could have waited a bit better than I did.

367
00:18:40,119 --> 00:18:43,920
Speaker 1: Chris McCann, president, chief executive officer of one Flowers dot

368
00:18:43,960 --> 00:18:46,480
Speaker 1: Com in based in Long Island here with us in

369
00:18:46,520 --> 00:18:50,199
Speaker 1: our interactive broker studios. Is flowers still the go to thing?

370
00:18:50,400 --> 00:18:53,280
Speaker 1: Is that what people go for on Valentine's Day? Valentine's

371
00:18:53,320 --> 00:18:54,919
Speaker 1: Day is just such a great day and when you

372
00:18:54,960 --> 00:18:57,440
Speaker 1: really look at it being the holiday of love, it

373
00:18:58,200 --> 00:19:00,199
Speaker 1: is it is for you because it counts are a

374
00:19:00,240 --> 00:19:03,320
Speaker 1: significant portion of your sales. So yes, flowers are the

375
00:19:03,440 --> 00:19:07,680
Speaker 1: go to a gift. They must have gift, especially if

376
00:19:07,680 --> 00:19:09,920
Speaker 1: you want to express yourself and connect with so many

377
00:19:09,960 --> 00:19:13,440
Speaker 1: important people, especially your significant other. Roses say at all,

378
00:19:14,359 --> 00:19:18,080
Speaker 1: that's still to go to or an Eagles concert, but

379
00:19:18,160 --> 00:19:19,879
Speaker 1: you still have to have the roses before you go

380
00:19:19,920 --> 00:19:24,280
Speaker 1: to an eagle. Okay, stuff, That's what some of the

381
00:19:24,280 --> 00:19:27,000
Speaker 1: new products or something that people are doing today and

382
00:19:27,000 --> 00:19:28,639
Speaker 1: maybe they didn't do five or ten, ten years. And

383
00:19:28,720 --> 00:19:30,120
Speaker 1: one of the things that we do is to make

384
00:19:30,119 --> 00:19:32,520
Speaker 1: sure that we have accessible price points for everything. So

385
00:19:32,640 --> 00:19:36,000
Speaker 1: roses all the most dominant flower in the most popular

386
00:19:36,040 --> 00:19:38,720
Speaker 1: flower for Valentine's Day. We bring in other things like,

387
00:19:38,760 --> 00:19:41,919
Speaker 1: for example, even preserved roses. So we have these magnificent

388
00:19:42,000 --> 00:19:44,720
Speaker 1: roses that are called which come in this nice round box,

389
00:19:44,760 --> 00:19:46,960
Speaker 1: a heart shaped box, and they they'll last you for

390
00:19:47,240 --> 00:19:50,200
Speaker 1: over six months. Can I be a little cynical here,

391
00:19:50,280 --> 00:19:53,000
Speaker 1: I'm sorry I have this time even get started this

392
00:19:53,080 --> 00:19:55,520
Speaker 1: thing where people are supposed to go out and buy

393
00:19:55,520 --> 00:19:58,159
Speaker 1: things for for for their significant others vountable. It's the

394
00:19:58,200 --> 00:20:00,880
Speaker 1: Feast of Saint Valentine, right, and it's all about love

395
00:20:00,920 --> 00:20:03,320
Speaker 1: and romance. But what we love about it really is

396
00:20:03,359 --> 00:20:06,280
Speaker 1: that has expanded beyond that. So when now people and

397
00:20:06,320 --> 00:20:08,600
Speaker 1: you see the growth and average spend according the National

398
00:20:08,640 --> 00:20:12,080
Speaker 1: Retail Federation, where you're seeing growth because people are buying

399
00:20:12,119 --> 00:20:15,560
Speaker 1: more to express themselves to family members, co workers, friends,

400
00:20:15,880 --> 00:20:18,800
Speaker 1: not just as significant other. Of course, a spouse or

401
00:20:18,800 --> 00:20:21,879
Speaker 1: a significant o. There's still accounts for about that spend,

402
00:20:22,280 --> 00:20:24,480
Speaker 1: but we need to do that, we need to express

403
00:20:25,359 --> 00:20:28,240
Speaker 1: this is really interesting. Hang on, so is for the

404
00:20:28,280 --> 00:20:31,040
Speaker 1: significant other? How has that changed over time? How much

405
00:20:31,160 --> 00:20:34,760
Speaker 1: more have have sort of friends, coworkers? Really people are

406
00:20:34,800 --> 00:20:38,760
Speaker 1: buying so that stayed about the same. Yes, yes, flowers

407
00:20:38,760 --> 00:20:40,919
Speaker 1: and gifts digital greeting cards if you just want to

408
00:20:40,920 --> 00:20:42,679
Speaker 1: do something simple, and you could do that with some

409
00:20:42,760 --> 00:20:46,440
Speaker 1: e cards from one Flowers of course, But really we

410
00:20:46,600 --> 00:20:49,080
Speaker 1: were seeing the growth in the category is from more

411
00:20:49,080 --> 00:20:52,080
Speaker 1: and more connections. People need to manage relationships on a

412
00:20:52,119 --> 00:20:55,560
Speaker 1: broad network, not just the romantic relationship that you have,

413
00:20:55,880 --> 00:20:59,720
Speaker 1: and we are relationship company. So how do you manage

414
00:20:59,760 --> 00:21:02,800
Speaker 1: like surgeon volume and demand on a day like Mother's

415
00:21:02,840 --> 00:21:06,080
Speaker 1: Day or Valentine's Day? Is that? I mean? I would

416
00:21:06,080 --> 00:21:10,159
Speaker 1: think that'd be a kind of logistical struggle. It's wildly complex.

417
00:21:10,200 --> 00:21:11,920
Speaker 1: The good news is we've been doing this for over

418
00:21:12,000 --> 00:21:14,240
Speaker 1: forty years now, and we have a bunch of people

419
00:21:14,240 --> 00:21:15,840
Speaker 1: that have been with us a long time, and then

420
00:21:15,840 --> 00:21:18,320
Speaker 1: we complement that staff with new people all the time.

421
00:21:18,680 --> 00:21:21,359
Speaker 1: I'm really really proud of the team the way we execute,

422
00:21:21,560 --> 00:21:23,439
Speaker 1: especially if you look at our results coming out of

423
00:21:23,480 --> 00:21:26,960
Speaker 1: this last first half of year. The execution was phenomenal.

424
00:21:27,000 --> 00:21:29,680
Speaker 1: We grew the top line by seven percent, but we

425
00:21:29,960 --> 00:21:32,399
Speaker 1: we had increased the guidance for the second half of

426
00:21:32,400 --> 00:21:34,400
Speaker 1: the year on EPs from a growth rate of eight

427
00:21:34,400 --> 00:21:37,800
Speaker 1: to ten percent to fifteen to seventeen percent because of

428
00:21:37,840 --> 00:21:41,040
Speaker 1: the way we're executing and showing leverage on our operating platform. Paul,

429
00:21:41,080 --> 00:21:43,960
Speaker 1: have you ever bought flowers for any of your co workers?

430
00:21:44,480 --> 00:21:47,560
Speaker 1: Co workers? Note? Have you ever bought a Valentine's gift

431
00:21:47,560 --> 00:21:51,240
Speaker 1: friend co workers? I've actually got a list of names

432
00:21:51,400 --> 00:21:54,200
Speaker 1: from my kids schools, so that I'm supposed to give

433
00:21:54,200 --> 00:21:57,880
Speaker 1: out Valentine's to everyone at school with their names on it.

434
00:21:58,119 --> 00:22:01,000
Speaker 1: And that's a thing that's done everybody, and and my

435
00:22:01,080 --> 00:22:03,880
Speaker 1: kids always get mad if it's not a sufficient thing. Well,

436
00:22:03,880 --> 00:22:08,960
Speaker 1: how about chocolate covered berries for a coworker from Sharry's Berries,

437
00:22:07,200 --> 00:22:13,800
Speaker 1: a company we acquired this past August. But I'm wondering

438
00:22:14,480 --> 00:22:18,640
Speaker 1: about delivery right now? How challenging is it given that

439
00:22:18,680 --> 00:22:22,959
Speaker 1: there is a competitive landscape, uh, with something that rhymes

440
00:22:22,960 --> 00:22:26,159
Speaker 1: with Amazon dot Com. That's kind of you know, the

441
00:22:26,160 --> 00:22:28,440
Speaker 1: big the big player here. As we look at deliveries

442
00:22:28,440 --> 00:22:30,840
Speaker 1: I think the floral network that we have bloom That

443
00:22:30,960 --> 00:22:33,040
Speaker 1: has always been in the same day delivery business, so

444
00:22:33,080 --> 00:22:34,800
Speaker 1: we've been out in front of that curve for a

445
00:22:34,840 --> 00:22:37,000
Speaker 1: long time. But one of the things that we're saying

446
00:22:37,000 --> 00:22:39,199
Speaker 1: that's making it even better for us and the retail

447
00:22:39,240 --> 00:22:42,320
Speaker 1: Flora's to make those deliveries is the onslaught of new

448
00:22:42,400 --> 00:22:45,280
Speaker 1: delivery companies, whether that be companies like a door Dash

449
00:22:45,640 --> 00:22:48,800
Speaker 1: or a deliver or or some of these other third

450
00:22:48,840 --> 00:22:52,040
Speaker 1: party delivery companies. So we have access to those companies

451
00:22:52,080 --> 00:22:54,760
Speaker 1: as well as our own networks of delivery personnel. So

452
00:22:54,800 --> 00:22:57,400
Speaker 1: it's actually making it better for us, even though we've

453
00:22:57,440 --> 00:22:59,800
Speaker 1: been the pioneer and same day delivery. Well, looking at

454
00:22:59,800 --> 00:23:01,240
Speaker 1: your but I was just looking at the financials on

455
00:23:01,280 --> 00:23:04,320
Speaker 1: the Bloomberg terminal, and you're a lot more than a

456
00:23:04,440 --> 00:23:06,719
Speaker 1: flower company. I mean, it's this, it's the gift. I mean,

457
00:23:06,800 --> 00:23:10,119
Speaker 1: so what else besides flowers kind of drives your business. Well,

458
00:23:10,119 --> 00:23:11,680
Speaker 1: that's why I was going to recommend also, I for

459
00:23:11,800 --> 00:23:14,720
Speaker 1: Valentine's Day, besides the berries, maybe a nice doughnut bouquet

460
00:23:14,720 --> 00:23:17,480
Speaker 1: from Harry and David. So we've moved into the gomet

461
00:23:17,520 --> 00:23:20,320
Speaker 1: food category over the past number of years, because that's

462
00:23:20,320 --> 00:23:22,520
Speaker 1: what our customers tell us they're using to express and

463
00:23:22,560 --> 00:23:25,280
Speaker 1: connect with the important people in their lives. So Harry

464
00:23:25,280 --> 00:23:28,720
Speaker 1: and David, Cheryl's Cookies, one hundred of baskets, food bouquets,

465
00:23:28,720 --> 00:23:32,320
Speaker 1: Sharry's Berries, the popcorn factory, a couple of others, to

466
00:23:32,359 --> 00:23:34,639
Speaker 1: the point where that's more than half of our business today.

467
00:23:35,119 --> 00:23:37,479
Speaker 1: What would you want to get for Valentine's Day? I

468
00:23:37,520 --> 00:23:39,360
Speaker 1: don't know. There's a lot that that cherry sounded good,

469
00:23:39,400 --> 00:23:42,280
Speaker 1: the chocolate thing, Maji. Yeah, Well, I mean, would you

470
00:23:42,320 --> 00:23:46,000
Speaker 1: want to be getting Valentine's gifts from your coworkers. I'm

471
00:23:46,000 --> 00:23:48,719
Speaker 1: gonna make this as awkward for your absolute Possibly you're like,

472
00:23:48,760 --> 00:23:51,920
Speaker 1: oh my god, let me get back to the Bloomberg terminal. Exactly,

473
00:23:52,560 --> 00:23:56,360
Speaker 1: but we need to work on this a little bit interesting.

474
00:23:56,440 --> 00:23:58,640
Speaker 1: Chris McCann, thanks so much for joining us. Get ready

475
00:23:58,680 --> 00:24:00,560
Speaker 1: for the big day. Chris mccamp press it in, CEO

476
00:24:00,560 --> 00:24:04,600
Speaker 1: of Flowers dot Com, Inc. Based in Long Island. Yes,

477
00:24:04,640 --> 00:24:06,640
Speaker 1: I'm gonna make it awkward for you, Paul. Yes, let's

478
00:24:06,720 --> 00:24:09,800
Speaker 1: keep going. They carry on. You can cite numbers on

479
00:24:09,880 --> 00:24:13,320
Speaker 1: the on the exactly we got Valentine's Day coming up

480
00:24:13,320 --> 00:24:16,280
Speaker 1: on Friday, and one flowers dot com will be there.

481
00:24:16,440 --> 00:24:18,720
Speaker 1: Thanks for listening to the Bloomberg P and L podcast.

482
00:24:18,840 --> 00:24:21,480
Speaker 1: You can subscribe and listen to interviews at Apple Podcasts

483
00:24:21,560 --> 00:24:24,639
Speaker 1: or whatever podcast platform you prefer. Paul Sweeney, I'm on

484
00:24:24,680 --> 00:24:27,239
Speaker 1: Twitter at pt Sweeney. I'm Lisa abram Woy. It's I'm

485
00:24:27,280 --> 00:24:30,160
Speaker 1: on Twitter at Lisa abram Woit's one before the podcast.

486
00:24:30,160 --> 00:24:32,760
Speaker 1: You can always catch us worldwide on Bloomberg Radio