Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Tom Keene along
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Speaker 2: And we have all sorts of side agreements with our guests.
Speaker 2: I mean, you know, there's like sensitive issues between UNC
Speaker 2: and Duke guests and all that. With Paul, one of
Speaker 2: the things we have is David Rosenberg will not come
Speaker 2: on unless the Toronto Maple Leafs lose joining us now.
Speaker 2: David Rosenberg of course Montreal Canadians fan. He is based
Speaker 2: in Toronto in the Foreign Lands, and he joins us.
Speaker 3: From Rosenberg Research. David, is disinflation still in place?
Speaker 4: Well, I do believe that the trend towards lower inflation
Speaker 4: is intact, notwithstanding what happened in January, which seems to
Speaker 4: be to be quite a bit of early year noise,
Speaker 4: you know, related to some specific idiosyncratic factors, you know,
Speaker 4: auto insurance premiums, health insurance premiums. I'd say that, you know, Tom,
Speaker 4: we talked about this last time, and we've talked about
Speaker 4: it like almost forever, about how flawed a statistic the
Speaker 4: CPI is when twenty seven percent of the index is
Speaker 4: one question to a sample of homeowners, which is how
Speaker 4: much do you think your home price? How much you
Speaker 4: think you can brant your home your unicord for and
Speaker 4: so you know that's the the owner's equivalent rant in
Speaker 4: particular is an ongoing source of frustration for people like me.
Speaker 4: But I do think that the overall trend okay, is
Speaker 4: going to be intact.
Speaker 2: David, you own the high ground on this to review
Speaker 2: this quickly with a lack of time because Paul wants
Speaker 2: to get in. There's a guy named Ferrell at merri
Speaker 2: Lynch a few years ago, and he had this young
Speaker 2: Turke named Rosenberg who owned the slicing and Dicing of inflation.
Speaker 2: If you don't like CPI, what inflation series? David Rosenberg
Speaker 2: should we pay attention.
Speaker 4: To Well, you know what's interesting is that, you know,
Speaker 4: in December, I think it was Governor Waller had said
Speaker 4: that the FED was increasingly shifting its focus from you know,
Speaker 4: the government data towards what business contacts we're telling them,
Speaker 4: And you know, we're going to get the base book tomorrow,
Speaker 4: and the last couple of base books have said decisively
Speaker 4: that the corporate sector is seeing diminished power. The ability
Speaker 4: to pass on cost increases has gone down materially. So
Speaker 4: I think you have to. I mean, so much of
Speaker 4: the CPI, even the PC deflator are imputed guesswork, They're
Speaker 4: imputed pricing in the service sector. So I'd say turn
Speaker 4: your attention to the things you can see, touch and
Speaker 4: feel in the product sector. And when people say to me, well,
Speaker 4: but you know all the disinflation's been in the good sector, well,
Speaker 4: those are the prices you can actually have reliability on
Speaker 4: as opposed to imputed services. My big concern is that
Speaker 4: it's the service sector that the FED is most focused on,
Speaker 4: and that is the most unreliable components you have within
Speaker 4: the CPI and PC deflator. So I say, look at
Speaker 4: the prices of the things you can see, touch and feel,
Speaker 4: and they're actually in a deflationary momentum, and I expect
Speaker 4: that that will persist over the next year.
Speaker 5: So, David, this is a good week to be an economist.
Speaker 5: Lots of economic data coming out this week, including we're
Speaker 5: going to hear from FED Chairman Jpowe. Do you expect
Speaker 5: the chairman into, I don't know, try to walk back
Speaker 5: a little bit some of the December commentary. It seems
Speaker 5: like the economic data is supporting just kind of waiting
Speaker 5: here on rate cuts.
Speaker 4: Well, firstly, it's always a great time to be an economist.
Speaker 4: This makes no exception. We just have to fasten our
Speaker 4: seatbelt and stay at our desks twenty four to seven. Look,
Speaker 4: the Fed has already walked back that dubbishness in December,
Speaker 4: and you know, the market's leapt on some you know
Speaker 4: comment that I think Mary Daily made about that maybe
Speaker 4: March would be the date, and of course then the
Speaker 4: futures price in you know, six rate cuts, not three.
Speaker 4: The Fed has successfully calibrated the market back to where
Speaker 4: it was in December. I expect that I think he's
Speaker 4: going to be pretty hawkish, and everybody is lined up
Speaker 4: hawkish relative to where they were in December, and the
Speaker 4: question is going to be will he sound more or
Speaker 4: less hawkish than what's priced in right now? My big
Speaker 4: concern actually, and this is coming from a on bull
Speaker 4: and who would be ordinarily a dove on the FED,
Speaker 4: I think he's going to sound pretty hawkish tomorrow.
Speaker 5: How about the I mean, we're gonna get some data here.
Speaker 5: I mean again a big data week here. You got
Speaker 5: the payrolls on Friday. I mean, that's kind of one
Speaker 5: of the issues for this market is the labor market's
Speaker 5: been very strong here.
Speaker 4: Well, look, if you bow down to the holy grail
Speaker 4: of non farm payrolls, that's what you would believe. And
Speaker 4: of course that's all the FED focus on as non
Speaker 4: farm payrolls. And I've almost given up trying to forecast
Speaker 4: the number because last year, last year, half of the
Speaker 4: growth of non farm pay rolls didn't even come from
Speaker 4: the survey. It came from the birth death model, where
Speaker 4: we used to call the plug factor. But frankly, if
Speaker 4: you look at the household survey and especially the contraction
Speaker 4: and full time jobs over the past six months, yeah,
Speaker 4: I mean, we're replacing part of full time jobs with
Speaker 4: part time jobs. There's been practically no growth in the
Speaker 4: household of survey over the course of the past half year.
Speaker 4: If those survey you'll be thinking, this recession is probably
Speaker 4: staring us in the face. The other thing I would
Speaker 4: just mention is this, look at the divergence between the
Speaker 4: non farm payroll headlines and the work week. The work
Speaker 4: week is already back at recession levels. So I know,
Speaker 4: I hear this all the time. The employment numbers, they're
Speaker 4: robust economy. But actually you know, when you dig beneath
Speaker 4: the veneer, even of the beloved payroll survey, and you
Speaker 4: look at the hours worked, it's telling you something a
Speaker 4: little more insidious that what was happening in the labor
Speaker 4: market than what the current consensus narrative is.
Speaker 3: David, you got to leave it there, David Rosenberg. I
Speaker 3: don't want to go longer. We can't.
Speaker 2: David Rosenberg at Rosenberg Research in Toronto, we got a
Speaker 2: huge response when he's done. Thank you for the response
Speaker 2: on it.
Speaker 3: This is a joy. Right now.
Speaker 2: I'm constant under with a senior advisor at Macro Policy Perspectives,
Speaker 2: Paul wants to griller here on the domestic economy, which
Speaker 2: is what we do with Diane swank.
Speaker 3: But we ran into each other last night at the
Speaker 3: council and four in relations.
Speaker 2: You know, I sort of thought I should go by
Speaker 2: and get some of the quality horse divorce that they
Speaker 2: have at the CFR.
Speaker 6: And that wine.
Speaker 3: They'd be like, they'd be.
Speaker 2: Like, yeah, well they serve at least yes, CFR served boons.
Speaker 3: Fire last night.
Speaker 2: But instead I got a pecked room with a riveting
Speaker 2: Secretary of Commerce, the former governor of Rhode Island, Jeter Romando.
Speaker 2: Her intensity surprised me on our new Pacific rim efforts.
Speaker 2: I guess that's how I put it. What did you
Speaker 2: take away from the comments of a Secretary of Commerce
Speaker 2: last night?
Speaker 1: Well, one that you know, this is an important region
Speaker 1: for the US. There are you know, you look at
Speaker 1: the demographics of India, Indonesia, the Philippines, Thailand, these are
Speaker 1: all countries with highly favorable demographics. And then you look
Speaker 1: at the the opportunities for workforce development. You know, India
Speaker 1: is producing a huge number of engineers every year, right,
Speaker 1: and you think about the future of where everything's going
Speaker 1: with technology. The other thing that I felt was very
Speaker 1: interesting is this is a public private partnership where the
Speaker 1: governments to government relations give cover to make sure that
Speaker 1: you don't have what do we call it an excessive
Speaker 1: stroke of the pen risk? Right, So you have if
Speaker 1: you're going to go in and invest in these countries,
Speaker 1: that you have a little more durability and visibility. And
Speaker 1: this public private partnership aspect means it's going to be
Speaker 1: very difficult to dismantle this.
Speaker 3: Yeah, it's really important.
Speaker 2: Constant Hunter, thank you so much for that, paul I.
Speaker 2: You know, I love when I have mild my radar down.
Speaker 2: I'm really like, you know, it's okay, it's going to
Speaker 2: be an event. Great Constant Hunters there, That alone is
Speaker 2: worth it. Elizabeth Economy was there with their public service,
Speaker 2: working with the Secretary at Connors and instead I got
Speaker 2: a riviting Raymondo on the new approach to the Pacific RIM.
Speaker 3: I don't know what it means the next three years out.
Speaker 5: It was tangible concerts. And then that kind of brings
Speaker 5: to the question that a lot of folks have, which
Speaker 5: is what's going on with China and how do I
Speaker 5: deal with China. It's almost like you talk to an
Speaker 5: emerging market first and they're like, it's a big part
Speaker 5: of my MSCI index, but a lot of folks say
Speaker 5: it's uninvestable. How do you think about China when you
Speaker 5: think about that part of the world.
Speaker 1: Yeah, so it's interesting. I mean, so I'll just start
Speaker 1: with this. When you look at the US when we
Speaker 1: had our when the global financial crisis hit, so before that,
Speaker 1: real estate was six percent of our GDP and the
Speaker 1: recovery from that took over a decade. Okay, Now, if
Speaker 1: we benchmark that six percent, real estate is twenty five residents,
Speaker 1: really twenty five to thirty percent of China's GDP and
Speaker 1: we're now, by the way, at three percent in the US. Right,
Speaker 1: so let's say you cut that in half. It's going
Speaker 1: to take at least a decade or two for them
Speaker 1: to recover. You're looking at Japan is the preview movie, right,
Speaker 1: it is the preview movie. And look how many years
Speaker 1: took back to get back to the right level and there,
Speaker 1: you know, to get back to previous highs in their
Speaker 1: equity market. It's going to be very difficult for them
Speaker 1: to make progress here. And I will just say this
Speaker 1: about their GDP numbers. You know how they get those
Speaker 1: GDP numbers. They revise the previous years. So the way
Speaker 1: you can see what's going on is you can look
Speaker 1: at China GDP as a percent of US GDP, and
Speaker 1: you can look at that ratio and that continues to
Speaker 1: go down, and so they are growing at a slower
Speaker 1: pace than they say they are.
Speaker 5: Yeah, it's just extraordinary.
Speaker 3: I don't know.
Speaker 5: Yeah, again, that gives you a great framework comparing it
Speaker 5: to the US and great financial crisis. Let's bring it
Speaker 5: back to here. I mean, we think about the US
Speaker 5: economy and Tom and I We've talked about it with
Speaker 5: various guests on this program. But seemingly the exceptionalism of
Speaker 5: the US economy here relative to China, for example, relative
Speaker 5: to European economies in the UK, maybe is that something
Speaker 5: that can continue the US almost kind of exceptional versus
Speaker 5: other parts of the world.
Speaker 1: Well, and the reason that people are so uncertain about
Speaker 1: this is because we don't fully understand productivity.
Speaker 2: Right.
Speaker 1: If we understood productivity, you would have governments adding a
Speaker 1: cup of capital investment and a third of a cup
Speaker 1: of R and D investment, and sprinkle on some education
Speaker 1: and upskilling, and then voil, you'd have this productivity growth. Right,
Speaker 1: So we're in this productivity surge. The question is how
Speaker 1: long will it last and what is underpinning it? And
Speaker 1: we see a number of things underpinning it. So just
Speaker 1: the healing of supply chains helped reduce sand in the gears.
Speaker 1: Then you have people resorting all through the pandemic into
Speaker 1: jobs that were better fits for them. That improves productivity.
Speaker 1: And on the flip side, now you have people staying
Speaker 1: at jobs longer.
Speaker 2: You and I tell you, she gave me a dissertation
Speaker 2: last time. I learned more from her than I learned
Speaker 2: from the Secretary of Commerce.
Speaker 3: Cut to the chase.
Speaker 2: You and Diane Swank have a fabulous holistic view of
Speaker 2: the economy. If we get a productivity growth to steal
Speaker 2: from the former president, is.
Speaker 3: It morning in America?
Speaker 2: Yes?
Speaker 3: Why does so many of our listeners say no?
Speaker 1: You know, it's it's hard to see it when you're
Speaker 1: in the middle of it, I think, And you know,
Speaker 1: there's also a great deal of uncertainty right now, right
Speaker 1: people don't People don't know. Am I going to lose
Speaker 1: my job because of AI? We You know, you look
Speaker 1: at the deep fakes that are out there. It's becoming
Speaker 1: harder to know what to trust, right And was it
Speaker 1: Warren Buffett who said that trust is a really powerful
Speaker 1: I'm probably misquoting him.
Speaker 3: But you know, it's okay, You're allowed to do that.
Speaker 1: It was either Munger or Buffett who said that trust
Speaker 1: is the most powerful force in the universe. Right, and
Speaker 1: so we're in a low trust environment and that to
Speaker 1: me is the biggest risk to the economy.
Speaker 5: How about this labor economy. We're going to get a
Speaker 5: big print here on Friday. For a lot of folks,
Speaker 5: including myself, I'm just kind of surprised that the resilience
Speaker 5: of the US labor market isn't real.
Speaker 3: Is it as strong as it appears to be.
Speaker 1: Yeah, that's a great question. So one of the things
Speaker 1: we do at micro policy perspectives is we do earning
Speaker 1: scraping and look at what companies are saying about hiring
Speaker 1: and firing intentions. So what we see is the companies
Speaker 1: while they're hiring less and intention to lay people off
Speaker 1: has gone up slightly. You do see companies continue to
Speaker 1: laborhoard and the way that they're doing this is they
Speaker 1: are reducing hours work, right. So in reality, what that
Speaker 1: does is it reduces total income, which reduces spending power.
Speaker 1: So it softens the economy. But people don't lose their jobs,
Speaker 1: and that's an important factor.
Speaker 3: Are you working less time? I'm not working any less.
Speaker 2: No, I we talked about this last you can see
Speaker 2: you see she put, I had a Martine or two.
Speaker 2: So you know we're talking to constants about this last night.
Speaker 2: We're all working harder than we've ever worked before. And
Speaker 2: I think part of is a digital thing. Like you know,
Speaker 2: I'm working all weekend because boom, it's right there on
Speaker 2: your screen or you know, I'm on the after I'm
Speaker 2: trying to pretend I'm you know, being good and I'm
Speaker 2: on my phone worried about you know, stochastic movements in
Speaker 2: the market or whatever. Conston, thank you so much, Thank you,
Speaker 2: thank you for that perspective off what you and I
Speaker 2: saw at the console and Foreign Relations.
Speaker 5: Meghan Robson Joints is US credit strategy at BNP Pariba. Megan,
Speaker 5: you know, in terms of credit here, you know I'm
Speaker 5: not buying a recession, so I think I can take
Speaker 5: some credit risk here. Where do you send me so well?
Speaker 7: First of all, thank you for having me so I
Speaker 7: you know, we completely agree with what you just said.
Speaker 7: Downside risks look a lot lower and continue to diminish
Speaker 7: especially in the high old space where you've seen issuers
Speaker 7: chip away at refinancing walls, and since October borrowing yields
Speaker 7: have come down, so it means the penalty to refi
Speaker 7: has come down. So within the leverage finance space, we
Speaker 7: do like taking some credit risks, so single bees we
Speaker 7: think look attractive. We're more selective on triple c's, but
Speaker 7: there definitely are some sectors and names where we like
Speaker 7: to add there. And then also you know, with fewer
Speaker 7: rate cuts, you can look to the double B loan
Speaker 7: space to offer a pickup and carry where you have
Speaker 7: a yield advantage of about one hundred basis points relative
Speaker 7: to fixed rate high yield at the moment.
Speaker 5: So I mean, I have to admit, Megan, I was
Speaker 5: surprised that in last year twenty twenty three, that US
Speaker 5: high yield was the place to really make your money
Speaker 5: in the fixed income space. Last year, with all the
Speaker 5: talk of a recession around everybody's corner, high yield was
Speaker 5: the place to be. So is that I can still
Speaker 5: go on that that far out on the risk curve.
Speaker 7: So we do think you're The argument for owning high
Speaker 7: yield and credit right now is really more of a
Speaker 7: carry argument, So we don't see a lot of We
Speaker 7: don't see a lot of spread upside from here. In fact,
Speaker 7: our target spread target for the end of the year
Speaker 7: is a bit wider from these levels. But we do
Speaker 7: think spreads widen. It's a good opportunity for investors to
Speaker 7: add to risk, sort of by the dip, if you will.
Speaker 7: And the argument for carry here for credit here is
Speaker 7: definitely more of a carry one rather than spreads tightening.
Speaker 2: Well, let's talk about that because Bramo one on one,
Speaker 2: Lisa Bramo, it's would say spreads are in I mean,
Speaker 2: that's all there is definance, folks. If you've got corporate
Speaker 2: bonds and they have a yield of say six in
Speaker 2: Megan Robson's full faith and Credit world is four, and
Speaker 2: then the yield comes from six into five, the spread
Speaker 2: goes from two percent to one percent, and from two
Speaker 2: hundred basis points to one hundred basis points. Where are
Speaker 2: spreads right now, Megan? Are they absurdly tight?
Speaker 7: So we think they're you know, historically on a percentile basis,
Speaker 7: spreads are absolutely trading tight. So look at the investment
Speaker 7: grade market. Over the last month or so, we've been
Speaker 7: trading at ninety to ninety five basis points, so you know,
Speaker 7: higher quality companies giving you some spread pick up relative
Speaker 7: to treasuries high yield. We're trading at about three hundred
Speaker 7: to three ten over. That's been the range over the
Speaker 7: last over the last month or so.
Speaker 2: I had this discussion last night Megan sas hours in here.
Speaker 3: Elboy, you know Paul.
Speaker 2: Smart, he's out of control, he is, Meghan, should our
Speaker 2: audience be buying triple C paper Isn't that like telling
Speaker 2: somebody to buy, you know, some silver mine off the
Speaker 2: Vancouver Index.
Speaker 7: So we're not recommending. We're not recommending triple c's at
Speaker 7: this point. And I think that it's more prudent if
Speaker 7: you do want to add into hygeld risk single bees.
Speaker 7: It's a place where you can still get a bit
Speaker 7: of a pickup and carry, but without really taking a
Speaker 7: lot of that risk. And Tom to your point, Triple
Speaker 7: C's have already tightened a lot to start the year,
Speaker 7: so I think the trade to add to triple c's
Speaker 7: has already played out, and at these levels trading pretty tight.
Speaker 2: I mean, you're at a wicked conservative French bank knowing
Speaker 2: me a B rated single B rated bond is a
Speaker 2: speculation or an investment.
Speaker 7: So I think in the in the high yield market
Speaker 7: where it is fixed rate and issuers have chipped away
Speaker 7: and brought down their maturities for this year, I think
Speaker 7: it's I think it's a prudent investment, lower volatility. But
Speaker 7: in the in the loan space, I would agree with you,
Speaker 7: where you have floating rate coupons. Continued debate about whether
Speaker 7: or not we actually get the rate cuts that consensus expects.
Speaker 7: I think their single bees are are much riskier. Where
Speaker 7: you have interest coverage is hovering around just one time,
Speaker 7: so given floating rates are higher, the fundamentals, I think
Speaker 7: much more vulnerable on the single bee long side.
Speaker 2: Well, did you see the banner Ari put out on
Speaker 2: YouTube Tom Keane recommends triple C bonds.
Speaker 3: You're getting me into trouble in there. In trouble, you know,
Speaker 3: I have another tang mimosa.
Speaker 5: Okay, hey Megan, what are the sectors that you guys
Speaker 5: like here in in the credit space.
Speaker 7: So in an investment grade, we're recommending sectors that we
Speaker 7: see as de leveraging this year. So there is this
Speaker 7: this theme we think will be important over the next
Speaker 7: year or two where companies are incentivized to pay down debt,
Speaker 7: and you saw that last quarter, particularly in investment grade healthcare,
Speaker 7: investment grade telecom sectors where more defensive, they have a
Speaker 7: lot of free cash flow and are actively paying down debt.
Speaker 7: So that's a positive grand story. And then and then
Speaker 7: in the highield space, we're recommending in overweight to media.
Speaker 5: So nice.
Speaker 7: This is based on the election, you know, so we
Speaker 7: we're forecasting. We are forecasting a pickup in election advertising
Speaker 7: spend relative to the last election cycle. So you've already
Speaker 7: seen a lot of fundraising from both political parties and
Speaker 7: likely that will be put to work.
Speaker 2: We're going to end the interview, but Megan, we can't
Speaker 2: seen you don't have a tantrument if we don't do this,
Speaker 2: are you on?
Speaker 3: Paul Sweeney?
Speaker 2: You can buy the debt sixty three percent of Warner
Speaker 2: Brothers Discovery.
Speaker 3: For total return.
Speaker 7: So we're of course with the media not not a
Speaker 7: wholesale buy on every sector. But look in the highield space,
Speaker 7: there's a lot of a lot of credits that have
Speaker 7: bottomed fundamentals last year and are absolutely improving in terms
Speaker 7: of their free cash flow. They have locked in more
Speaker 7: ad spend and you can see the leverages is definitely
Speaker 7: manageable relative to history, and so we stand by the
Speaker 7: high yeld media pick.
Speaker 5: Yeah, I mean that's kind of what we've heard in
Speaker 5: the past time high yield credit, I mean a media
Speaker 5: credit a lot better than media equity. So that's kind
Speaker 5: of what we hear. Megan Robson, thanks so much for
Speaker 5: joining us, Megan Robson, US Credit Strategy BNP Parry Bowbi,
Speaker 5: thank you forgetting your thoughts there, and.
Speaker 2: Let us look at the front pages as we do
Speaker 2: that around the world. She's never seen a Seltzer.
Speaker 5: She didn't like what I knew.
Speaker 8: That's my favorite. All Right, we're starting with uh Fox's
Speaker 8: chief executive Okay, So Lachlan Murdock is saying that the
Speaker 8: sports streaming service could take a little bit longer to
Speaker 8: get some subscribers, five years to reach five million subscribers.
Speaker 8: That's what he's saying. He was talking at a conference.
Speaker 2: So uhline fifty dollars.
Speaker 5: Well, here's the thing.
Speaker 8: He said that Australia is Cayo Sports, which is what
Speaker 8: he's kind of basing it off. That's where he's saying
Speaker 8: he got the idea for this from because it's from
Speaker 8: Fox Tell, which is part of his news corps, so
Speaker 8: he's familiar with it. They charge for their sports streaming
Speaker 8: service sixteen dollars a month, but he's saying, yeah, it's
Speaker 8: going to cost more in the US because the right
Speaker 8: sports Rice right costs a lot.
Speaker 5: More than he had five million. I thought that was
Speaker 5: a typeou yeah, I do, so, I mean it's fine.
Speaker 5: I mean, what kind of businesses that I have no idea.
Speaker 5: They're saying they're targeting the people that don't subscribe to
Speaker 5: a pay TV and so maybe they will in fact
Speaker 5: pay that. I don't know. But it is just getting
Speaker 5: so fragmented with all these streaming offerings. I just think
Speaker 5: it's it's just a disaster right now.
Speaker 8: Disaster waiting to happen. Still no name for it either.
Speaker 5: No, All right, interesting what else we got?
Speaker 8: So yesterday we talked about how Whole Foods was shrinking
Speaker 8: its stores. Well now we've been talking about this. Actually
Speaker 8: this morning, the big box retailers are doing that same thing.
Speaker 8: So you have Best Buy, Macy's. They said that they're
Speaker 8: planning to had those smaller format stores. It's going to
Speaker 8: help cut costs, help with convenience as well, but here's
Speaker 8: the thing. Consumers are using the stores differently. So the
Speaker 8: consumer is shopping differently. They're not going in and looking
Speaker 8: for things. They're more going on social media and scrolling
Speaker 8: and then going to the store maybe and picking up
Speaker 8: what they noticed. So they don't need the big stores anymore.
Speaker 8: So that's the kind of the trend that they're seeing.
Speaker 2: I'm seeing everywhere. I believe I saw yesterday. I do
Speaker 2: not have this in front of me, folks, and I'm
Speaker 2: ill brief. But grocery stores the internet buy it, you know,
Speaker 2: order your groceries off. The internet is so successful. They're
Speaker 2: talking about shrinking all that square footage.
Speaker 8: Yeah, like the INSTACRT. I know a lot of my
Speaker 8: family members use instacar because they don't want to go
Speaker 8: to the store. But it's they're shrinking the stores because.
Speaker 5: Yes, I mean, I think what we learned in the pandemic is,
Speaker 5: you know, you still like to have this whole omni
Speaker 5: channel thing. Maybe you shop online, pick it up at
Speaker 5: the store, or maybe you want to browse it's the store,
Speaker 5: then buy it online. So yes, you need the physical retail,
Speaker 5: but maybe not in the same way. I eat all
Speaker 5: the square footage that that you did before. So I
Speaker 5: think that's the new retail.
Speaker 8: Model exactly exactly. Handbags are getting pricier. Okay, so luxury
Speaker 8: brands here we go, missus Keane. Pay attention to the
Speaker 8: Basic taking the birkenhead bag.
Speaker 5: The Basic one.
Speaker 8: Has jumped one thousand dollars. I thought this was a typo,
Speaker 8: but no, this is data from perse Bop which is
Speaker 8: on the on the terminal right now. The Basic Burken.
Speaker 8: It's a nine inch nine inch handbag and US stores
Speaker 8: increase by ten percent to eleven thousand, four hundred dollars
Speaker 8: before sales tax.
Speaker 5: Wow, that is such a thing easier. Even if you
Speaker 5: set it down, you lose it. You can't do anything.
Speaker 8: You can't put on the floor.
Speaker 6: You can't put it.
Speaker 8: I mean even the restaurants have chair hand handbags, chairs
Speaker 8: for your handbag.
Speaker 2: Andrews, thank you so much for listening this morning. These
Speaker 2: fancy bags from these stores, including Armez, you can't get them.
Speaker 2: You have to spend ginormous amounts of money. Before Andrew
Speaker 2: comes up to you on Madison Avenue and says, mister
Speaker 2: Keene coming in ninety days, we possibly have We're not
Speaker 2: sure what color it is.
Speaker 3: It's like that exclusive.
Speaker 2: Trust me, folks, I'm not spending that much money doing
Speaker 2: when you're into a Kelly or a Birket.
Speaker 5: But okay, you can do a Prada Galleria bag. We'll
Speaker 5: set shoppers back a cool forty six hundred dollars eighty
Speaker 5: five percent more than in twenty nineteen. And it's not
Speaker 5: because their costs are going up, per se. This is
Speaker 5: just they're putting the price in crusers through because they can't.
Speaker 8: Because they can they have this, you know, exclusivity.
Speaker 6: That's what they're going to.
Speaker 5: Put I was in movie for it.
Speaker 2: I was in a luxury store this weekend, per chance,
Speaker 2: and I won't say what name it was, it doesn't matter.
Speaker 2: It looked like December twenty third, right, I mean I
Speaker 2: was shocked how packed it was. Now what really shocks
Speaker 2: me here is I can't tell Ariel, thank you so
Speaker 2: much for the brief on this. Do I want to
Speaker 2: go with a tequila selser fies to eight pack or
Speaker 2: do I want to look at the vodka and soda pineapple?
Speaker 2: I mean, the biggest response we get all day, Paul,
Speaker 2: we don't exist Teo is high noon is the biggest response.
Speaker 3: What in God's name is high now.
Speaker 8: High Noon because there's zero sugar. That's like it. I'm
Speaker 8: always watching my sugar and take so High New doesn't
Speaker 8: have this?
Speaker 5: What is it a vodka? It's a vodka.
Speaker 3: Okay.
Speaker 5: But now, back in high school, you were drinking wine coolers.
Speaker 6: Back in high school, righter the thing that it was
Speaker 6: the Boonze Farm, it was the College Tree, the Cisco
Speaker 6: mad Dog.
Speaker 5: Twenty twenty, we went back taking his way back. All right,
Speaker 5: so so far, all right, so rich, where do you fit?
Speaker 5: He's drinking Budweiser.
Speaker 3: Let's be honest, like.
Speaker 2: Yeah, I look at this. Can I ask a dumb question?
Speaker 2: Can you buy the High Noon variety twelve back? Can
Speaker 2: you buy that in like a grocery store or like
Speaker 2: a Walgreens or Duane Read or that?
Speaker 5: Not in Jersey?
Speaker 6: I know, not in Jersey.
Speaker 5: You have to go to the Gulcestre store.
Speaker 6: Yeah, that's a Clucker store thing, So you.
Speaker 3: Have to go to the liquor store to get it.
Speaker 2: Yeah, I mean, you know, I'm up with the fancy
Speaker 2: people at K and D.
Speaker 3: They barely talk to me, right if the order is
Speaker 3: under five hundred dollars, they don't look at you. I'm
Speaker 3: about kay. I don't think K and d up on
Speaker 3: Madison Avenues. I don't think.
Speaker 5: Or the white cloth that's that's that's another popular one.
Speaker 3: That's the one Riley from Saint Louis.
Speaker 2: I had to sip One's and weird at a bar and
Speaker 2: she said, here, I have some white claw and I
Speaker 2: thought it was, you.
Speaker 3: Know, like a white Russian or something. So much fit
Speaker 3: Lisa Matteo. I learned so much from our newspaper.
Speaker 5: Yeah, yes, huge, you know news you can use you
Speaker 5: look at this.
Speaker 3: Here's you know, met us out there. What is this?
Speaker 3: Missus Sweeney? Paul Sweeney is so dope. It's like unbelievable.
Speaker 3: Nobody ever says that about me exactly. I mean it's like,
Speaker 3: you know, it's like use, let's hear Lisa Mateo, thank
Speaker 3: you so much.
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