WEBVTT - Single Best Idea with Tom Keene: Mike Mayo

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, single.

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<v Speaker 2>Bust idea on a day that was exceptional. Our team

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<v Speaker 2>really tried to balance for July a Wednesday. There's almost

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<v Speaker 2>no economic data today, Boom A trade discussion on three

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<v Speaker 2>fronts yesterday afternoon, Mark Kearney in Canada, right as we

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<v Speaker 2>went to air the European Union out of Brussels. Thank

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<v Speaker 2>you Steve Carroll for reporting from Brussels, and of course

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<v Speaker 2>the bombshell of some form of trade deal. The President

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<v Speaker 2>said a massive trade deal with Japan. As the news

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<v Speaker 2>came out, you know, I'm not sure how massive it was.

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<v Speaker 2>We were diverted by that. We have Google Learnings technology now,

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<v Speaker 2>huge curiosity about AI and all of that. Talked to

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<v Speaker 2>Mike Mayo of Wells Fargo iconic as a bank analyst

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<v Speaker 2>about AI, and I just said, who's winning the technology

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<v Speaker 2>race in banking?

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<v Speaker 3>He had one name, Kapie Morgan is the Nvidia of banking.

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<v Speaker 3>They're leading with AI. They have it centralized. They say

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<v Speaker 3>that you know, most of their employees use it every

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<v Speaker 3>day to save a bit more productivity. They seem strategically

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<v Speaker 3>and operationally ahead of the pack. They do spend a

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<v Speaker 3>lot of money on technology. They spend eighteen billion dollars

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<v Speaker 3>this year on technology, and you know, the amount to

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<v Speaker 3>AI continues to increase, so they think it's real. They're

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<v Speaker 3>embracing it. You know, it starts more non comfort facing activities,

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<v Speaker 3>but they're certainly ahead of the game.

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<v Speaker 2>Mike Mayo, and I should say his research team is

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<v Speaker 2>really looking at bank regulation. Mike Mayo appearing yes today

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<v Speaker 2>at that Capital Markets event that Chairman Powell introduced, and

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<v Speaker 2>he said very clearly this is an important time in

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<v Speaker 2>bank regulation for those of you of a global Wall

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<v Speaker 2>Street mc Mayo associated with it. At some point, somehow,

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<v Speaker 2>some way City Group would turn around. It's a hockey

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<v Speaker 2>stick up for Citygroup.

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<v Speaker 3>What's underappreciated. They've transitioned from fifty years of a global

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<v Speaker 3>matrix missmashed structure YEP, to five lines of business payments, banking, markets,

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<v Speaker 3>consumer and well and each one of those lines of

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<v Speaker 3>business has a P and L. They have returns, they

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<v Speaker 3>have targeted returns, and they have a CEO that's in

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<v Speaker 3>charge of achieving those targeted returns. Now, you say, Jane Frazer,

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<v Speaker 3>the CEO does not get a Nobel Prize for doing that.

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<v Speaker 3>But City is now getting operated more like a normal company,

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<v Speaker 3>and they're only six quarters into this new structure. Short

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<v Speaker 3>term people are selling the stock inappropriately due to the

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<v Speaker 3>terraff City is a tariff beneficiary. They move five trained

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<v Speaker 3>dollars of money every day around the world. Now it

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<v Speaker 3>might be moving to different countries. Also, a lot of

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<v Speaker 3>the customers around the world need trade financee. They need

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<v Speaker 3>more trade finante now or in exchange. So this really

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<v Speaker 3>fits right into cities right, you know, structural positioning while

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<v Speaker 3>they make the structural change.

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<v Speaker 2>Michael Mayo of Wills Fargo there in the bank. So

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<v Speaker 2>we're really trying to do more of this, and it's

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<v Speaker 2>sort of a project of Eric and our team here

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<v Speaker 2>at Bloomberg's Surveillance to really talk to iconic cell side

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<v Speaker 2>voices here into the end of twenty twenty five and

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<v Speaker 2>into the next year as well. It's easy to do

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<v Speaker 2>when it's a bullmarket. Everything seems to be up up, well,

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<v Speaker 2>not everything. There's healthcare. Maybe we won't talk to any

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<v Speaker 2>healthcare analysts. It's brutal out there for them, but for

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<v Speaker 2>everybody else it's up up in a way. Please stay

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<v Speaker 2>with us through the week. Just an eventful week to

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<v Speaker 2>say the least across the nation. Our commute and serious

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<v Speaker 2>XM Channel one twenty one good Morning in the Corridor

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<v Speaker 2>from ninety two nine FM Boston down to ninety nine

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<v Speaker 2>one FM Washington. Good Morning Worldwide is all pro special

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<v Speaker 2>good Morning for Birmingham in the United Kingdom. IRIDH Jersey

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<v Speaker 2>was just brilliant comments on the late Ozzie Osbourne on

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<v Speaker 2>our podcast on YouTube podcast. It's single best idea