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Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along
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Speaker 2: Terminal and the Bloomberg Business App. Terry Haynes of Pangaeepolicy, Terry,
Speaker 2: Welcome to the program. There is always a temptation to
Speaker 2: move on to the next thing. I just want to
Speaker 2: talk about the last thing for a little bit longer.
Speaker 2: Just frame what we witnessed over the weekend. To see
Speaker 2: European Commission president except fifteen percent and essentially say thank you,
Speaker 2: we will rebalance and almost apologizing about the situation.
Speaker 3: Well, it's a it's a triumph of a lot of things.
Speaker 3: Certainly the president ought to take a victory lap. I
Speaker 3: think it's I think it ends up being good for
Speaker 3: the European Union. It's a blow against the conventional wisdom,
Speaker 3: which of course, in the last quarter saw a lot
Speaker 3: of this as disastrous. The markets see the fact of
Speaker 3: the deal and the ratification of trade and the expansion
Speaker 3: of trade is the most important thing and number one.
Speaker 3: Number two, I think there's a situation here where as
Speaker 3: you've alluded to when you're questioning with Tyler, that the
Speaker 3: geopolitical element of this also remains front and center. Whether
Speaker 3: we're talking about the continued interdependence of the US and
Speaker 3: European Union economies, or whether we're talking about investments in
Speaker 3: the United States and purchases of military equipment. You're seeing
Speaker 3: a You're seeing a tightening of the alliance, and I think,
Speaker 3: frankly an attempt by both parties to push back a
Speaker 3: bit against against China terry.
Speaker 4: Just to build on that theme, we're hearing from the
Speaker 4: EU Trade Commissioner morro Sekovich this morning in Brussels, and
Speaker 4: he commented on how overcapacity is destroying the EU steel industry.
Speaker 4: Over Capacity is sort of code from steel from China,
Speaker 4: and I wonder how much that is. Ongoing discussions that
Speaker 4: are happening now that have pushed Europeans to make this
Speaker 4: deal with the United States, even if it's being perceived
Speaker 4: by the market as being better for the.
Speaker 3: US, well, they'll they'll certainly try to make a deal
Speaker 3: on this. But at the same time, you know, the
Speaker 3: europe sees in the United States sees as well.
Speaker 5: I think the.
Speaker 3: China using the economic sectors and industries as geopolitical weapons.
Speaker 3: And there's nothing there's nothing more stark than China trying
Speaker 3: to flood the European market with evs for example, on this.
Speaker 3: And you know, we even see Bloomberg reported recently Starbucks
Speaker 3: under assault now by a Chinese coffee company starting in
Speaker 3: New York, vastly undercutting prices. So you'll see this throughout
Speaker 3: and it is a light motif these trade deals and
Speaker 3: the fulcrum of kind of pushing back against China, limiting
Speaker 3: China's ability to try to use industries and sectors to
Speaker 3: frankly hollow out and destroy industrial capacity in the West.
Speaker 4: What have we learned from both the Japanese deal and
Speaker 4: the EU deal in terms of the structure of the
Speaker 4: sustainable trade conversation going forward? Is it the fifteen percent
Speaker 4: is a new floor and that you have to have
Speaker 4: some sort of investment fund alongside that. The details of
Speaker 4: which haven't really been disclosed on either side.
Speaker 3: I tend to go outside in on this instead of
Speaker 3: inside out. What I mean by this is I think
Speaker 3: I think markets, and I've said this many times on
Speaker 3: this program, I think markets are focusing entirely too much
Speaker 3: on tariffs and entirely not too much on the broader
Speaker 3: benefits of the rest of Trump trade and trade policy
Speaker 3: and tax policy, whether it be the tax bill and
Speaker 3: the variety of things that are that are coming from
Speaker 3: that or these trade deals, and how they're trying to
Speaker 3: reorient in ways that frankly continue and expand investment in
Speaker 3: the United States as a compliment to onshoing and reshoring
Speaker 3: in critical critical industries, as Secretary best and puts it.
Speaker 4: In fairness, though, stops are at record high. So if
Speaker 4: you're reaching record high after record high and what capacity,
Speaker 4: are you saying that markets are not aware of some
Speaker 4: of the positive benefits from this, Well.
Speaker 3: I'm saying that they haven't been, first of all, And
Speaker 3: second of all, I'm saying that there's there continues to
Speaker 3: be a focus on tariffs as a negative without the
Speaker 3: countervailing positives and attached. Certainly, markets had gotten over a
Speaker 3: lot of the tariff shock in the last quarter, and
Speaker 3: you know got past the idea from the conventional wisdom
Speaker 3: that this was going to cause a hole in the economy. Now,
Speaker 3: what your situation is, Steve put it very well in
Speaker 3: the last segment, is you've got a variety of hoops
Speaker 3: that have been jumped through all of what your market positives.
Speaker 3: And now we're turning to for example, the FED this
Speaker 3: week as well as earnings to see if the proofs
Speaker 3: and the putting on that.
Speaker 2: Side the narrative has changed quickly. Let's put it that way, Terry,
Speaker 2: appreciate your time. Terry Haynes. There of panchee policy. Steve
Speaker 2: Reshoot of Mazoo with a bullish forecast for Friday's payrolls report,
Speaker 2: calling for one hundred and forty thousand jobs to be
Speaker 2: added and expecting the unemployment rate to tick up slightly.
Speaker 2: Steve joined us now for more Steve Goomonic, good morning.
Speaker 2: Some of the times that maybe one forty is called bullish.
Speaker 2: Now for the labor market, what's changed, Well.
Speaker 6: You are further into a business cycle. You do have
Speaker 6: a labor market shortage. You do have a very very
Speaker 6: tight labor market, so it's hard to continue to add
Speaker 6: large scales without causing a certain amount of disruptions and
Speaker 6: a dramatic rise in wages, and I think companies have
Speaker 6: been resistant on that. I also think there's a bit
Speaker 6: of a technology shift taking price, and I don't think it's
Speaker 6: all the AI, but I think it's further adopting of
Speaker 6: the traditional types of technology that we need to do
Speaker 6: things in the service industry with more and more kiosks
Speaker 6: popping up everywhere, and I think that helps the situation
Speaker 6: as well. So we're supplementing labor or get a little
Speaker 6: bit with capital where we can.
Speaker 4: You have some people like Chris Waller, governor who's expected
Speaker 4: to send the first ascent on the Federal Reserve since
Speaker 4: nineteen ninety three, potentially on Wednesday, coming out and saying
Speaker 4: he's seeing cracks, he's seeing signs that there is instability
Speaker 4: in the labor market. Do you reject that wholesale or
Speaker 4: do you just say that that is something that comes
Speaker 4: along with the changes in technology and demographics.
Speaker 6: Well, I do reject at wholesale because what we see
Speaker 6: in terms of the claims numbers, what we see in
Speaker 6: terms of the continuing claims numbers leave us in an
Speaker 6: environment in which you know there's a healthy labor marketing environment.
Speaker 6: We see no evidence whatsoever in the data that's less
Speaker 6: likely to be disrupted by any kind of flow differentials.
Speaker 6: We also seen in terms of the Jolts numbers, which
Speaker 6: I don't particularly like, but the FED seems to like
Speaker 6: in terms of hiring quits going back up, in terms
Speaker 6: of hirings being healthy, in terms of job openings going
Speaker 6: back up. So I don't see where there really are
Speaker 6: cracks in the labor market. It's a traditional slowing that
Speaker 6: takes place as you get this far into an environment.
Speaker 6: And oh, by the way, adjust it for how tight
Speaker 6: the labor market fundamental he.
Speaker 4: Is, given the fact that we do see some sort
Speaker 4: of slowing at least at the very least, Is there
Speaker 4: anything inflationary about this labor market? Is there anything about
Speaker 4: wage growth that would give you confidence that we could
Speaker 4: see more than just a one time price adjustment from tariffs?
Speaker 6: Oh, I think you grew up going towards a three
Speaker 6: percent inflation rate, and that's part of the issue. I
Speaker 6: think it's from a labor market tight standpoint, I don't
Speaker 6: necessarily have to talk about tariffs to tell you I
Speaker 6: think we're going to three percent inflation, and I question
Speaker 6: whether or not tariffs themselves will be reflected in prices substantially,
Speaker 6: because you look at quorter margins, they're very, very wide.
Speaker 6: You look at exporter margins with the dollar going down,
Speaker 6: you've got that benefit coming through a little bit of
Speaker 6: goods prices. We've seen given the fact that the dollar
Speaker 6: is depreciated six or seven percent in the last year,
Speaker 6: and not surprising you see a little upward movement in
Speaker 6: prices that would typically just take place from the currency standpoint,
Speaker 6: and actually it's not even keeping place with the currency standpoint,
Speaker 6: because global deflation is real. And that's the other thing
Speaker 6: that's offsetting and helping the exporter margins widing, because as
Speaker 6: China dumps all its goods everywhere else in the world,
Speaker 6: these people are sitting there with their run material base
Speaker 6: starting to get cheaper, and therefore they could absorb the
Speaker 6: margins where and China is dumping goods everywhere that they
Speaker 6: can't dump here anymore.
Speaker 2: Other capacity is a massive issue, particularly for the Europeans.
Speaker 2: That's for sure. You said something really interested that we
Speaker 2: need to unpack the labor market might be a reason
Speaker 2: to be hawk issh still, Governor Walla was in your
Speaker 2: seat a week two weeks ago. I made the case
Speaker 2: the labor market is increasingly becoming a reason to be dumbished.
Speaker 2: So I just want to give you some time. What's
Speaker 2: happening in the labor market right now that you think
Speaker 2: is going to keep them on the back foot.
Speaker 6: I think the fact that the unemployment rate is not
Speaker 6: going to go higher. I think the you know, movement
Speaker 6: to four point two, we've been there and they've done nothing.
Speaker 6: But I think when you look at the fundamentals of
Speaker 6: the labor market and what will drive that unemployment rate
Speaker 6: up a little bit, you can discover that it's positive science.
Speaker 6: An expansion in the labor force from not having expanded
Speaker 6: for two months in a row. That's going to be
Speaker 6: the kind of thing that you know, gives you an
Speaker 6: environment where and that's probably going to wind up in
Speaker 6: a little bit increase in unemployment. Temporarily, you're going to
Speaker 6: wind up in an environment where it's a healthy expansion
Speaker 6: in the labor market help you up with adjustment in
Speaker 6: the unemployment rate. I don't think there's cracks in the
Speaker 6: system when I look at the earnings numbers. You know,
Speaker 6: my earnings revision tracker is now positive after being negative
Speaker 6: for weeks on end, It's now been positive for three
Speaker 6: weeks in a row. Companies are revising up earnings. We're
Speaker 6: at ten point nine percent for this year, thirteen point
Speaker 6: nine percent for next year. These are solid earnings numbers.
Speaker 6: These aren't kind of an earning number of peop will
Speaker 6: sit back and say I have to scale back on
Speaker 6: employment dramatically. I think a lot of the announcements that
Speaker 6: you're picking up on in the labor market are taking
Speaker 6: place in states where you're required to announce the layoffs,
Speaker 6: but you're not required to announce the net hirings, and
Speaker 6: I think that becomes part.
Speaker 5: Of the problem.
Speaker 6: It's selective decision to look at the information. And this
Speaker 6: is a confirmation bias I think comes from the dots.
Speaker 6: If I were to drop Jonathan Ferroll out of an
Speaker 6: alien spacecraft, you had been studying the Federal Reserve for years,
Speaker 6: you'd been studying the US economy for years, but you
Speaker 6: didn't know any about the dots, and I dropped you
Speaker 6: in Arizona right now, Okay, you would come out of
Speaker 6: that spacecraft and you would be like, Oh, the FED
Speaker 6: shouldn't be cutting rates. But everyone else says the Fed's
Speaker 6: cutting rates. Why because the dots are there, so everyone's
Speaker 6: biased by the dots.
Speaker 2: Other people might cherry peck some labor market data. Right now,
Speaker 2: at least, I've talked about a few things. Entry level
Speaker 2: hiring not great at all, job switches not getting that
Speaker 2: boost to pay. You talked about the labor market and
Speaker 2: the tightness there, sufficiently tight to generate stronger pay rolls growth,
Speaker 2: stronger wage growth. It keeps this FED reluctant account interest rights.
Speaker 6: We've got an hoarurwly earnings number of zero point four percent.
Speaker 6: That's again consistent with a four percent rise. A four
Speaker 6: percent rise is consistent with three percent inflation. FEDS targets too.
Speaker 6: We're a two point seven our estimate for the upcoming
Speaker 6: PCE deflator. There's seven tenths off the mark, three tenths
Speaker 6: closer to my number, seven tenths away from their number.
Speaker 6: I'm sorry. I think they're not in the position to
Speaker 6: cut rates. And if they were to cut rates, I
Speaker 6: think it would be a mistake. And I think you'd
Speaker 6: discover exactly what happened last year when they cut rates,
Speaker 6: and that is the long end of the curve. Would
Speaker 6: sell off, so it would be a bear steepener.
Speaker 4: Which at a certain point is the reason why people
Speaker 4: are also looking to the auctions. Sorry, I had to
Speaker 4: say that I've been ormissed. There are auctions today and
Speaker 4: tomorrow two year, five year, and seven year notes, but
Speaker 4: also the Treasury refunding announcement that comes on Wednesday, when
Speaker 4: maybe we get a sense of whether any of this
Speaker 4: will matter for the US government's dep financing costs because
Speaker 4: maybe they'll issue everything in t bills and just retire
Speaker 4: all of their coupon all of their treasury bonds. I mean,
Speaker 4: how much are you looking at that to really understand
Speaker 4: exactly how this Treasure Department is going to manage this
Speaker 4: and whether it's going to have any market immifications.
Speaker 6: Well, I think there's lots of reasons to expect bill
Speaker 6: issue sizes will go up. Back when I began, which
Speaker 6: was ancient history in terms of the markets, one of
Speaker 6: the things I had to do was estimate the treasuries
Speaker 6: operating cash balance. So I had to figure out financy
Speaker 6: and I had to figure out the net cash flows,
Speaker 6: and we assumed every single quarter a third of all
Speaker 6: the net new money would be raised in bills. That's
Speaker 6: not happening now. So yeah, there's more bill issuance coming
Speaker 6: relative to coupon issuance.
Speaker 4: When you came in, you said that there's something else
Speaker 4: that you're looking for.
Speaker 6: Stable Coin is something that I'm going to be looking
Speaker 6: to see whether or not Treasure Secretary of pressent a
Speaker 6: if he's back from his overseas trip and talks further
Speaker 6: about stable coin than he did at the May Were
Speaker 6: funding announcement, And he made a statement at that point
Speaker 6: in time that I think get stuck in a lot
Speaker 6: of people's minds. And I visited a lot of accounts,
Speaker 6: and some of these accounts are very, very interested in
Speaker 6: the whole stable coin concept and where do we go
Speaker 6: with stable coin and how much of it will be
Speaker 6: financed through bills, And he talked about two trillion dollars
Speaker 6: market cap. You look at stable coin now, it's about
Speaker 6: three hundred two hundred billion dollars. So that's telling it
Speaker 6: there's a long way to go. And I question whether
Speaker 6: or not if you wind up with it being done properly,
Speaker 6: if you want it, For example, the Federal Reserve issuing
Speaker 6: its own stable coin, could you then be in a
Speaker 6: situation where we might actually replace a lot of our
Speaker 6: electronic transfers of wires and replace the swift system with
Speaker 6: something more simple and less costly for the end result user.
Speaker 6: And know the banks don't want this because clearly it
Speaker 6: influences a business they make a lot of money on.
Speaker 6: But clearly the end user wants it. I can imagine
Speaker 6: a place like Walmart, Target, Boeing, these big people, these exporters,
Speaker 6: these importers, all sitting there saying, you know, this would
Speaker 6: be great.
Speaker 5: It reduces my costs.
Speaker 6: I really think we have to do this right now.
Speaker 6: We've got lots of stable coins going in different directions
Speaker 6: and trying to do different things. If we could find
Speaker 6: one way of unifying it and putting them all on
Speaker 6: one network, creating it all in terms of one large
Speaker 6: ability to do it, for example, with a treasury coin
Speaker 6: hosted on a Federal Reserve website, I think you can
Speaker 6: get a very fast adoption of the technology.
Speaker 2: You think it leads to increased tea build demand.
Speaker 6: I do think it leads to increased tea build demand,
Speaker 6: because I do not believe it'll affect currency in circulation,
Speaker 6: which affects the rest of the Federal Reserves portfolio. Currency
Speaker 6: in circulation is a percentage of the economy's percent of
Speaker 6: financial transactions is not going down. Yes, a lot of
Speaker 6: the currency in circulation is outside the country, but we
Speaker 6: still have the currency that's in circulation once up outside
Speaker 6: the country. But we do have as a result of that,
Speaker 6: the big federal reserve portfolio, and I don't think it changes.
Speaker 6: So Yes, what happens in terms of stable coin, I
Speaker 6: think will be a net new demand.
Speaker 5: Interesting.
Speaker 2: Happy to catch Shelby this morning Church a lot of
Speaker 2: the audience Ryan and as well Steved shouldov missoo, I
Speaker 2: have an a tremendous yes, so far dead on so
Speaker 2: far this year on a lot of issues. Well, it's
Speaker 2: nice watched football league making its way across the Atlantic.
Speaker 2: The English Premier League is playing six matches for sold
Speaker 2: out crowds in New Jersey, Chicago, and Atlanta this summer,
Speaker 2: the series kicking off this past weekend with Manchester United
Speaker 2: beating West Ham joining us. Now, I'm very pleased to
Speaker 2: say the CEO of the English Premier League, Richard Master's
Speaker 2: Richard and Monic.
Speaker 5: Good morning, thank you for having me.
Speaker 2: Welcome to the studio here in New York. It's going
Speaker 2: to see you, sir, let's just talk about your involvement
Speaker 2: in the sport. I think it's almost twenty years of
Speaker 2: direct involvement with the Premier League. Are you surprised by
Speaker 2: the amount of growth we've seen? Not in the UK,
Speaker 2: forget all of that, the amount of growth we've seen
Speaker 2: in America.
Speaker 1: Twenty years next January at the Premier League seven years
Speaker 1: a CEO in December, what's the Premier League gets? Get
Speaker 1: bigger and bigger and bigger and out here in the
Speaker 1: US we've got a fantastic broadcast relationship NBC. We've opened
Speaker 1: offices here in New York. We're committed to grow in
Speaker 1: the game. About thirty percent of the US population not
Speaker 1: interested in soccer or football, and about two thirds of
Speaker 1: those followed the Premier League.
Speaker 5: And that's a brilliant foundation which to growth.
Speaker 1: Reason we're out here with six of our teams playing
Speaker 1: matches to give our fans a taste to the Premier League.
Speaker 2: As a Britain New York I can tell you the
Speaker 2: experience of NBC is amazing. I get to wake up
Speaker 2: on a Saturday morning on a Sunday and I get
Speaker 2: to watch absolutely everything. That's not the experience in the
Speaker 2: UK with Sky. It's a very different experience. You only
Speaker 2: get to watch so much. Why do we get to
Speaker 2: see so much more through NBC than maybe fans in
Speaker 2: the UK get to see at home.
Speaker 1: Well, in the UK, the matches between two and five
Speaker 1: o'clock on a Saturday afternoon, which is the traditional time
Speaker 1: to go and watch football in the country, aren't broadcast.
Speaker 5: So it's not just the Premier League. The FFL as
Speaker 5: well aren't.
Speaker 1: Broadcast, and that's part of the decision we've made. It's
Speaker 1: long term commitment to what's called Article forty eight. But
Speaker 1: anywhere else outside of the UK, it's all three hundred
Speaker 1: and eighty games throughout the season you can watch.
Speaker 5: And of course here in the US, as you.
Speaker 1: Say, there are millions of people getting up on a
Speaker 1: Saturday and Sunday morning watching their favorite team and you
Speaker 1: can sit there from seven AMS or lunchtime watch the
Speaker 1: entire thing if you want to, And that's a brilliant
Speaker 1: thing for us.
Speaker 4: Does it kind of hurt your soul to say soccer
Speaker 4: instead of football at all?
Speaker 1: I think they're interchangeable. When I grew up, I grew
Speaker 1: up in the Midlands, I watched soccer Sunday on Star
Speaker 1: soccer rather on a Sunday lunchtime, so it's interchangeable at this.
Speaker 4: Point, though, does it dilute the pelayer's ability to really
Speaker 4: commit to not only a team but a season if
Speaker 4: they're playing at all times in all places and their
Speaker 4: bodies have to be exhausted at a certain point.
Speaker 5: Now that's true.
Speaker 1: I mean there is a starter of players at the
Speaker 1: top of the game who are playing a lot, and
Speaker 1: it's a big issue within the game. The Premier League, obviously,
Speaker 1: since ninety four, has been twenty clubs to in gen
Speaker 1: eighty games August to May, but we've seen the gradual
Speaker 1: expansion of European competitions and now global competitions as well.
Speaker 5: Next summer, the US will host.
Speaker 1: The World Cup first time forty eight teams, and of
Speaker 1: course in the last summer we've seen the Club World Cup,
Speaker 1: a brand new competition put into the calendar. And I
Speaker 1: think that from my perspective, not just as CEO the
Speaker 1: Premi League, but also my other role as chair of
Speaker 1: the World League's Sociation, which is about representing domestic leagues
Speaker 1: around the world, there has to be a big conversation
Speaker 1: now about how you balance this out properly and make
Speaker 1: sure that players are looked after and that these competitions
Speaker 1: are additive and not subtractive from the competitions they bump into.
Speaker 2: Well, it's have that conversation right now. I can speak
Speaker 2: as a fan. I hate it. I don't want to
Speaker 2: see an expanded FIFA Club World Cub. In fact, for
Speaker 2: most fans of the English Premier League, we get annoyed
Speaker 2: whenever there's an international break. We don't want to see
Speaker 2: more tournaments. What we loved was just the cadence of
Speaker 2: every two years you had a major tournament. The Euro's,
Speaker 2: the World Cup, the Euro's the World Cub. Why have
Speaker 2: we gotten away from there? And what's your message to
Speaker 2: FIFA to UEFA, as in the minds of many fans
Speaker 2: they just seem to be chasing money, the expense of
Speaker 2: the game and maybe the player's health.
Speaker 5: Well, the message is talk.
Speaker 1: You know that there is actually strong dialogue between domestic
Speaker 1: leagues in Europe and New AFA about competitions and that's
Speaker 1: a coalition of stakeholders, clubs, leagues, club players as well
Speaker 1: talking about it. That dialogue doesn't happen at all for
Speaker 1: the game and it should do. So that's the key message.
Speaker 1: Sit down and talk to the leaguees, talk to all
Speaker 1: the stakeholders and find a way through all of this,
Speaker 1: because it has a limit and I think we've gone
Speaker 1: past it. We've gone past saturation point. My job, obviously
Speaker 1: is to look after the Premier League, and we're going
Speaker 1: great guns, thank you very much. And I want the
Speaker 1: purity of that competition to remain. I want people to
Speaker 1: be able to enjoy that, enjoy their football because I
Speaker 1: want the best players on the pitch all the time
Speaker 1: in the Premier League and not worrying about how to
Speaker 1: balance everything out.
Speaker 2: Let's talk about the purity of the game. It's a
Speaker 2: polarizing topic and very controversial, as you know, Manchester City
Speaker 2: in this number one hundred and fifteen the number of
Speaker 2: charges for alleged breaches of financial regulations. What can you
Speaker 2: share with us this morning about where things stand.
Speaker 5: Nothing is the honest truth.
Speaker 1: The case was heard last year and we wait for
Speaker 1: the decision to be made. We can't hurry the people
Speaker 1: whose job it is to make that decision, and it
Speaker 1: will happen when it happens, and I don't know when
Speaker 1: it's going to be. We'll find out with everybody else.
Speaker 2: What's your se of why it's taking so long.
Speaker 5: I don't know, and it's difficult for me to speculate.
Speaker 5: I'm sorry.
Speaker 2: It's just difficult for a lot of people in the
Speaker 2: game who follow the game to see how quickly things
Speaker 2: concluded with a club like Habitat and how long it's
Speaker 2: taking with a club like Manchester City. And some people
Speaker 2: can't help but conclude that maybe different clubs are being
Speaker 2: treated differently because of these status they have in the
Speaker 2: Premier League.
Speaker 5: Yeah.
Speaker 1: Well, I do want to sign of frustration and share
Speaker 1: some of those but in the end, this process is
Speaker 1: very different.
Speaker 5: These allegations are very different. Makes it different too.
Speaker 1: They just said that the charge themselves and the number
Speaker 1: of them, but I can't really get into it.
Speaker 5: I really can't talk about and you.
Speaker 2: Can't get into the details. But do you think it's
Speaker 2: hurting the reputation of the league?
Speaker 1: Well, at the center of this is a football competition,
Speaker 1: and I think people want to basically watch the football.
Speaker 5: That's the main event.
Speaker 1: And when you get dragged into whatever it may be,
Speaker 1: financial affairs, I think people think that maybe there's something
Speaker 1: going wrong here. I do accept all of that. The
Speaker 1: competition remains strong, the economics, the primileague remain strong and fundamentally,
Speaker 1: as long as we can put the best players on
Speaker 1: the pitch and give people a fantastic competition, I think
Speaker 1: we can get through this period.
Speaker 4: I've been an outsider and I've been studying the rules
Speaker 4: of the game and the sustainability rule that kind of
Speaker 4: led to this investigation into Man's City and this idea
Speaker 4: that a club has to bring in and just spend
Speaker 4: the same amount of money that it brings in. Do
Speaker 4: you think that that rule has become outdated or unenforceable
Speaker 4: in any kind of real time way.
Speaker 5: So, if you're talking.
Speaker 1: About the financial regulations within football, our clubs are all
Speaker 1: really subject to two sets of regulations, our own, the
Speaker 1: profitable and sustainability rules and also u waifers rules, So
Speaker 1: they're looking at two sets of financial rules to comply with.
Speaker 1: And essentially in England our rules are there. It's a
Speaker 1: spending rule really about profitability. So there is the ability
Speaker 1: to invest and that's what we want our clubs to do.
Speaker 1: We've got a fantastic set of owners that invest in
Speaker 1: the stadiums, in fan experience and players on the pitch,
Speaker 1: and that's what we want. Whatever, as I said, the
Speaker 1: great set of owners that want to invest, and so
Speaker 1: there has to be a limit ultimately to ensure they've
Speaker 1: got a competitive league, which we do have.
Speaker 5: So I think we're known as look at investing in
Speaker 5: the Premier League.
Speaker 1: They can see that you can aspire to do better
Speaker 1: in the league and now seeing more clubs qualifying for
Speaker 1: European competition. Our clubs are in incredibly successful in Europe
Speaker 1: and that's all down to investment. So there has to
Speaker 1: be a limit ultimately on what you can spend. Clubs
Speaker 1: have all signed up to these rules and we are
Speaker 1: enforcing them.
Speaker 4: Well, how much does the Saudi League really kind of
Speaker 4: I don't know, skew the financials of this in a
Speaker 4: way that creates a sort of complicated dynamic.
Speaker 1: Well, the Saudi League is an investment phase. Sally League's
Speaker 1: been around for many decades and now we're seeing local
Speaker 1: investment into that and they're becoming very active in the marketplace.
Speaker 1: Sometimes that good for Premierley clubs. Some sids they take clubs,
Speaker 1: take players that Premi leagu clubs want to sign. It's
Speaker 1: just a new dynamic and we have to observe it
Speaker 1: and we have to cope with it.
Speaker 2: Richard, you'll be generous with your time. We appreciate it.
Speaker 2: Thanks for dropping by, Thanks for having me, Thank you
Speaker 2: very much for being here. Richard Masters there the English
Speaker 2: Premier League CEO. This is the Bloomberg Surveillance podcast, bringing
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