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Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. Along

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Speaker 1: with Jonathan Ferrell and Lisa Brownwitz. Daily we bring you

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Speaker 1: insight from the best and economics, finance, investment, and international relations.

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Speaker 1: Find Bloomberg Surveillance on Apple Podcast, Suncloud, Bloomberg dot Com,

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Speaker 1: and of course on the Bloomberg terminal. We start strong

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Speaker 1: with Carl Built. He's a former Prime Minister Sweden for

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Speaker 1: an extended time uh their Minister of Foreign Affairs, but

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Speaker 1: far more than that, he has applied his public life

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Speaker 1: to the fractured continent, moving from Athens up to Vilnius.

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Speaker 1: His work in Kosovo, his work and all of the

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Speaker 1: Balkan states as well is noted. He has European Council

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Speaker 1: on Foreign Relations coach here. Prime Minister, thank you so

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Speaker 1: much for joining us today. There has to be a

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Speaker 1: response less with the original assertive Belarus and far more

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Speaker 1: from Moscow. What can Europe and European political leaders ask

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Speaker 1: of Mr Putin this morning? Well, have you are entirely right?

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Speaker 1: There has to be there has to be a very

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Speaker 1: firm on So this is a pirish, is a banditry

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Speaker 1: in air space and if this is tolerated by Lukashenko.

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Speaker 1: It could happen everywhere in the world. So it's a

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Speaker 1: threat to global as to the safety and security of

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Speaker 1: global aspace everywhere, So firm action has to be taken.

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Speaker 1: What can be done well, I mean your PIE leaders

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Speaker 1: are meeting this uh, this evening in Bruscess for plan

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Speaker 1: for other issues. Needless to say, I think they should

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Speaker 1: declare bellarous a space unsafe. One should not fly through

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Speaker 1: bellarous space because you might be subject to hijacking or

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Speaker 1: god knows what this man is capable of doing, and

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Speaker 1: then of course being it up in the relevanted national bodies.

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Speaker 1: I k probably see what can be done within that context.

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Speaker 1: That might also be a case for wider economic and

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Speaker 1: financial sncious against belar Rush if he doesn't follow the

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Speaker 1: international rection. Um Russia um, I mean Russia would be

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Speaker 1: supporting of Belarush in this particular action. I don't think

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Speaker 1: that particular think is nice, but they would be supporting Belarus. Yes,

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Speaker 1: Carl Bill, you wrote an essay for foreign affairs. I

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Speaker 1: want to play off of it years ago and that

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Speaker 1: this event will reveal Belarus. This event will review Russia

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Speaker 1: as they treat the Baltic States. We forget these distances.

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Speaker 1: A hundred and sixteen miles from Minx to Vilnias, it's

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Speaker 1: an hour and thirty minute flight to Stockholm. Describe the

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Speaker 1: closenesses here of the tension, the geography of the tension,

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Speaker 1: along with what this will reveal about these two states. Now,

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Speaker 1: it's very true, men's convenience are very close and has

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Speaker 1: a bad The fact, if if you look at the statistics,

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Speaker 1: Belarus is the country in all of the world where

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Speaker 1: you have the highest numbers of sharing in Lisa's relationship

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Speaker 1: ship to the population. Because Belarius people are normally opinions.

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Speaker 1: They like to go to shopping in Warsaw or Venus

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Speaker 1: or whatever. But they got this tug. Uh. Look Asenko,

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Speaker 1: who has been there forever since the fall of the

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Speaker 1: Soviet Union, and he has been able to consolidate and

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Speaker 1: authority and receive The economy is a sort of Soviet

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Speaker 1: memborium more or less. I mean, it's depended upon a

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Speaker 1: couple of huge state owned enterprises. The economy is miserable,

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Speaker 1: all sorts of deficits. The Russians have debated them out

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Speaker 1: now and then and and and and of course he

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Speaker 1: completely manipulated an election. Uh nowst autumn, and since then

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Speaker 1: he's been trying to preserve his power by very severe

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Speaker 1: repression against a very decent be nation which, as you said,

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Speaker 1: is close to us. I mean means is much closer

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Speaker 1: to Stockholm, them, Brussels or London is um. So it's

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Speaker 1: not it's not a far away country of weakly know nothing.

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Speaker 1: It's nearby, and it concerns us. This is the political dilemma,

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Speaker 1: isn't it. How do you punish howing your sanction the

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Speaker 1: government without isolating the people? How do you do that?

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Speaker 1: What kind of decisions do you make? Yeah, and the

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Speaker 1: dilemma has also been another one if you look put

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Speaker 1: back on the discussions over the years, if we sanction

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Speaker 1: heavily in the Bellarous economy as a risk of the

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Speaker 1: Russians picking up the entire thing, because Russia Moscow has

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Speaker 1: been keen on integrating Bellarious even more closely than is

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Speaker 1: the case, and it's in taking over this particular Bellarrus enterprise.

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Speaker 1: So that that's been the considerations over for in this

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Speaker 1: particular case. So there's a downside, two different sanctions. But

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Speaker 1: I think in this particular case what is done is

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Speaker 1: outrageous that the downside of doing nothing is far great

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Speaker 1: than the downside that is there of these particular sanctions. Unfortunately,

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Speaker 1: but that's the case. Do you think that europe Is

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Speaker 1: United on had to respond to this too early to tell?

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Speaker 1: I mean this happened literally hours ago, um, and I

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Speaker 1: think prime ministers and presidents preparing to go to Brousses

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Speaker 1: are still sort of discussing exactly what to do. But

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Speaker 1: if I see what primarily in Lithuania's most directly effective

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Speaker 1: or demanding. They are demanding the closing bears a space

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Speaker 1: for EU flights. They are demanding the closure of the

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Speaker 1: U S space for the Belar State airline. I think

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Speaker 1: the Polish Prime Minister has said something along those lines.

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Speaker 1: There's a sort of fairly stormy language coming out of

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Speaker 1: brusss Or, but no action as it yet. UM Tony

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Speaker 1: Lincoln Washington has come out and said that the decision

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Speaker 1: making bodies of the International Civil Aviation Organization must be

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Speaker 1: called in. I think they's still discussing exactly what can

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Speaker 1: be done. This is raw, the unique situation. There's no

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Speaker 1: blueprint for how you do it, but I think there

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Speaker 1: is m The Greek Prime minister has to be added

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Speaker 1: somewhat greater distance in ureography, but the flight that was

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Speaker 1: hidek was coming from methods. The big Prime Minister bid

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Speaker 1: Zadakis has also been very strong in his language. So

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Speaker 1: something will come out, Carl. In the meantime, the Kremlin

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Speaker 1: has said that this has not disrupted President Vladimir Putin's

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Speaker 1: plan to meet with President Biden of the United States

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Speaker 1: at the summit next month. What would you hope the

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Speaker 1: US response could be or would be to some of this?

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Speaker 1: How much will the US Do you expect the US

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Speaker 1: to be working in tandem with Europeans, as represented by yourself, Well,

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Speaker 1: I'm quite certain that will be close coordination across the Atlantic.

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Speaker 1: There have been sort of a statement by Secondave Lincoln.

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Speaker 1: There was a very strong statement by the way coming

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Speaker 1: out of Senator Mandetta Mendelia, who is sort of shairman

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Speaker 1: of the Senate Foreign the first committing together with the

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Speaker 1: Chairman of the Foreign A first committees of the German

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Speaker 1: Parliament and the UK Parliament and a couple of other parliaments,

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Speaker 1: and they were calling for strong measures, and they were

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Speaker 1: calling for transatlantic coordination. I think that will happen. I

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Speaker 1: think we'll see EU and the US working together in

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Speaker 1: the UK, working together on this Carl who is the

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Speaker 1: center of power when it comes to determining the response

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Speaker 1: of Europe to Belarus as well as frankly to Russia,

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Speaker 1: which seems to be supporting Belarius's actions. I think it's

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Speaker 1: gonna be Brussels also because of the fact that sort

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Speaker 1: of the mi coincidence, the Hendson state in government are

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Speaker 1: meeting in Brussels tonight, this evening and tomorrow, so you'll

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Speaker 1: have all of the decision making power of the EU

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Speaker 1: at one spot h this evening and tomorrow, so that

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Speaker 1: that I think will be decisive. And then obviously talking

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Speaker 1: to London, obviously talking to Washington. I need to go

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Speaker 1: back primary st to the linkage here of Moscow in Minx.

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Speaker 1: I mean, obviously we're gonna treat bell Belarus separately. Here

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Speaker 1: they'll be outrage and action as well. How does NATO,

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Speaker 1: how does Brussels link Moscow into their actions? I think

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Speaker 1: NATO will probably sort of stay on the sidelines. This

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Speaker 1: is not a sort of a militage, and I don't

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Speaker 1: think we would like it to become a militage either.

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Speaker 1: Bye bye bye, by the way, but the world of

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Speaker 1: Moscow is going to be important. I think it's important

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Speaker 1: for process of Washington suthetically a message to Russia that

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Speaker 1: we see this as an infringement and form international routs

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Speaker 1: that are importance to Russia as well, and we would

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Speaker 1: expect them to not necessarily support US. I don't think

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Speaker 1: they will do that, but to stay stay calm. We're

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Speaker 1: actually is taking can't we gotta leave it there. Fantastic

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Speaker 1: to catch up with you and one the morning for it.

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Speaker 1: A story that is as much Bizarres that is serious,

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Speaker 1: very much. So count bail the European Council and Foreign Relations.

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Speaker 1: Thank you, said Mike Daba joins us. Now, Mike, is

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Speaker 1: that what you anticipate? I do. Um. So we're gonna

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Speaker 1: get a GP revision this week. Um. And we've got

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Speaker 1: nominal aggregate demand running in about ten percent annualized race.

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Speaker 1: Uh in the forecast as we move into Q two

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Speaker 1: is for that to continue. So that is not sustainable.

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Speaker 1: It's okay for now because the economy is coming out

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Speaker 1: of the deep hole. But the idea here is that

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Speaker 1: the thatt is going to be behind the curve when

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Speaker 1: they do start the type of the process. The intention

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Speaker 1: is to wait until we're essentially fully recovered in inflation

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Speaker 1: is somewhat above target before they even get going and

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Speaker 1: going on monetary tighten and that's quite different from what

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Speaker 1: happened the past. So the risk is that there is

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Speaker 1: some overshoot of potential and that the inflationary pressures proved

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Speaker 1: to be a bit more persistent, maybe than some officials

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Speaker 1: are out there making them to be. I mean, Michael Darty,

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Speaker 1: you're one of the leading proponents of watching nominal GDP.

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Speaker 1: The behavior of nominal GDP itself, as you say in

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Speaker 1: your note, that is the real economy with the overlay

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Speaker 1: of inflation on top. If and when the Fed titans,

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Speaker 1: what is affected first, inflation or the real economy? Well, tom,

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Speaker 1: asset markets will be impacted first, and so we're watching

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Speaker 1: a few variables in addition to the behavior of nominal GDP.

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Speaker 1: It's it's a bit back backward looking with the statistics

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Speaker 1: that we get, but we can watch the inflation break

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Speaker 1: even market that's been in a very steady upward ascent.

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Speaker 1: It's recently pulled back just a touch, but you know,

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Speaker 1: if you look at the behavior of those inflation compensation

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Speaker 1: spreads from March of last year, it's been an incredible

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Speaker 1: the rebound, and we're watching the behavior of broad money

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Speaker 1: growing very rapidly, much more rapidly than what we saw

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Speaker 1: to the oh seven o nine crash. And so you know,

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Speaker 1: those those two variables and how they start to react

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Speaker 1: once the Fed gets closer to either a taper work

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Speaker 1: you know, after that down the road rate heights will

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Speaker 1: be quite important to the nominal GDP outlook in our opinion, Mike,

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Speaker 1: in the notes that I was reading over the weekend,

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Speaker 1: there's increasing skepticism, frankly over the inflationary theme that we

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Speaker 1: keep hearing, and a part of its stems from efforts

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Speaker 1: on the part of Chinese as well as others to

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Speaker 1: crack down on commodity prices, and frankly in China in particular,

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Speaker 1: to reduce the amount of credit in the system. How

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Speaker 1: does that play into your feeling the idea that inflation

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Speaker 1: is global and they're global inflation pressures to tamp down

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Speaker 1: some of what we've seen that's generated these higher prices. Yeah, absolutely, Well,

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Speaker 1: you know, China is using some blunt tools to you know,

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Speaker 1: to try to address the commodity price inflation. China was

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Speaker 1: also the first into the COVID shock and it's been

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Speaker 1: the first out. And you know, we like to watch

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Speaker 1: industrial metals just as a broad property for global industrial demand,

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Speaker 1: and they've obviously been in a in a very steep

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Speaker 1: ascent here. As long as the global economy continues to recover,

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Speaker 1: and obviously we have Europe and certainly parts of Asia

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Speaker 1: way behind where the US and China are with the

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Speaker 1: with the virus and the recovery. But as long as

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Speaker 1: there is a global upswing uh taking shapes and that

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Speaker 1: you know, that should be helpful for the commodity price backdrop,

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Speaker 1: but it has been exaggerated in these markets are subject

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Speaker 1: volatility and corrections, though from an investing standpoint, probably a

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Speaker 1: bit of a dangerous place to be right now, My

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Speaker 1: just quickly, how useful is China's credit impulse? Is just

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Speaker 1: a guide for the broader Malka used to tell you

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Speaker 1: something about manufacturing about Matzo's. Does it anymore? You know,

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Speaker 1: it's a great question. It's it's you know, we watch it,

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Speaker 1: will watch everything. I'm not sure that it's the a

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Speaker 1: perfect predictor of what's going to happen with commodity prices.

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Speaker 1: Probably more more coincident if anything. Minds out of gonna

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Speaker 1: catch up, joining us from m Campound as chief economist

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Speaker 1: and market strategist on the lightst in this market. Monamah

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Speaker 1: John joins us right now with Alians. She's US investment

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Speaker 1: strategist Mona. It's it's rude that we've barely talked about

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Speaker 1: the equity markets today. I look at futures up twenty two,

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Speaker 1: futures up one thirty. We make a joke about melt up.

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Speaker 1: Are we prepared in a boom economy for a melt up?

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Speaker 1: You know, Look, we've already had a bit of a

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Speaker 1: melt up in the first half of the year, so

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Speaker 1: it's hard for us to think about SMPS up eleven

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Speaker 1: percent year to date for that to really annualize for

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Speaker 1: another eleven percent, So we don't necessarily see another melt

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Speaker 1: up happening. You know, keep in mind, on a year

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Speaker 1: to date basis, UH value sectors like energy, financials, you know,

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Speaker 1: parts of the material sector, industrials all up thirty plus.

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Speaker 1: So while exceeding the SMP return, where we've really seen

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Speaker 1: the laggards have been that tech and consumer discretionary and interestingly,

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Speaker 1: as the inflationary pressures started to rise over the last

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Speaker 1: few weeks, we've seen healthcare and staples sectors that have

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Speaker 1: had pricing power really come to the forefront as well. So,

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Speaker 1: you know, I think every sector has had its day

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Speaker 1: in the sun. Last year, it's been TechEd. This year,

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Speaker 1: it's been the value sectors. Some of the more defensive

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Speaker 1: sectors have risen in inflationary environment. So all sectors have

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Speaker 1: done their part to keep this market steady this year.

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Speaker 1: But as we look towards the next six and twelve months,

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Speaker 1: or really pricing in an environment where maybe growth isn't

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Speaker 1: as strong although above trend, maybe the FED is in play,

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Speaker 1: and maybe there's a different tax regime. So I do

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Speaker 1: think you have to be a little bit more selective,

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Speaker 1: cautious active as we head towards the second half of

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Speaker 1: the year. Just getting some headlines crossing the Bloomberg guys

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Speaker 1: that I want to be very delicate with, very very

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Speaker 1: careful with. Comes from luftans A light boarding has been

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Speaker 1: halted in Minsk due to a terror threat. This coming

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Speaker 1: from Minsk Airport comments on a Lufthansa flight. A Lufthansa

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Speaker 1: flight boarding has been halted in Minx due to a

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Speaker 1: terror threat. This comes at a time of course where

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Speaker 1: the Ryan Edge. Yet over the weekend on its way

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Speaker 1: to Lithuania was grounded in Belarus under what is widely

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Speaker 1: considered to be the false pretenses of a terror threat. Tom,

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Speaker 1: I'm not connecting the two issues. Many pointing out the

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Speaker 1: context for this headline this morning given the news flow

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Speaker 1: OU swhere right now. The headline is that lufthans Is

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Speaker 1: flight boarding has been halted in Minsk due to a

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Speaker 1: terror threat that coming to from the Minsk airport. Commenting

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Speaker 1: on that flight, we're coming on four pm in Minsk

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Speaker 1: right now. Remember it's one time zone over, John, from

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Speaker 1: continental Europe warsaw is I believe, within Europe. And then

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Speaker 1: as you go east off you go to another seven

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Speaker 1: hours from New York and they're going into prime time

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Speaker 1: in Minx. Now, this is when in the afternoon you

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Speaker 1: fly out to what forty fifty different geographies, So we're

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Speaker 1: coming right into prime time, and this is when it

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Speaker 1: becomes increasingly difficult and complex for airlines to operate within

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Speaker 1: that country and over that airspace, Tom, because the threat

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Speaker 1: of any kind of terror on an airline is something

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Speaker 1: taken incredibly seriously by airlines. Yeah, I agree with that, John,

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Speaker 1: I don't think the airlines are gonna stress very hard

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Speaker 1: about this. I mean, these are easy calls to make.

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Speaker 1: Maybe not as Guy Johnson mentioned c DG to Delhi,

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Speaker 1: I mean what do you do with that? But um, yeah,

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Speaker 1: I agree, these are easy, easy decisions for the airlines.

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Speaker 1: It's much more the politics of the moment. It will

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Speaker 1: be important. We'll continue to follow this a story with this.

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Speaker 1: Monama John of Alliance is well, Mona, I haven't asked

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Speaker 1: this quaint question in ages and use of cash. The

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Speaker 1: use of cash has never been greater, isn't it. Yeah,

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Speaker 1: you know absolutely. I think cash for companies now has

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Speaker 1: has been very interesting. Of course, we're seeing certain sectors,

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Speaker 1: uh for example, the A, T and T s of

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Speaker 1: the world, to take their cash and move it away

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Speaker 1: from dividends and into acquisitions. Interestingly, some companies are moving

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Speaker 1: more and more into capex spending. But we really want

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Speaker 1: to see to kind of take this economy to another

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Speaker 1: through this next like higher and really kind of continue

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Speaker 1: to drive it is more and more spending in capex

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Speaker 1: in R and D, having more labor entered the workforce

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Speaker 1: and support that as well, And so certainly it'll be

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Speaker 1: interesting for those those investors that are looking for dividends

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Speaker 1: to see if those dividends actually do hold. Share buy

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Speaker 1: backs have been a big part of use of cash

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Speaker 1: as well, um, and we're starting to see that come

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Speaker 1: back as well. So certainly there's been shareholder friendly uses

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Speaker 1: of cash and then corporation friendly uses of cash that

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Speaker 1: really drives the economy. Um. That balance may be shifting

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Speaker 1: more back towards the capex parts of the world, but

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Speaker 1: we will see in the next six and twelve months

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Speaker 1: if that trend holds as well. Not just to tie

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Speaker 1: the idea of incredible cash piles, the dynamism of the

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Speaker 1: U S economy, and frankly the of recovery with this

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Speaker 1: existential threat, this exogenous threat coming from what happened in Belarus,

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Speaker 1: the idea of how fragile our markets right now to

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Speaker 1: some sort of unpredictable threat from the outside. Do you

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Speaker 1: have any sense of that, I mean, the whole concept

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Speaker 1: of price to perfection and people expecting things to keep

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Speaker 1: going on a perfect trajectory. Yeah, it's a great point. Um.

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Speaker 1: You know, keep in mind and we talk about corrections

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Speaker 1: in the market, uh, and and any given year, you know,

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Speaker 1: one to three corrections in the five to ten percent

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Speaker 1: range are the norm. This year, we haven't yet gotten

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Speaker 1: even one plus correction in the SMP five hundred UM.

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Speaker 1: And you know, to your point that we could be

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Speaker 1: set up for at least a period of consolidation after

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Speaker 1: a really nice run, especially across some of these value

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Speaker 1: sectors that we noted UM, and that could come. You know,

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Speaker 1: what could spark that, well, we don't know yet, but

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Speaker 1: perhaps it is something in the political regime or in

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Speaker 1: the geopolitical realm that we're seeing UM coming to the

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Speaker 1: forefront or more. You know, keep in mind, in this

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Speaker 1: economy we've really seen this recovery, and we talked about

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Speaker 1: the K shape recovery. There have been haves and have

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Speaker 1: not There has been a diversion and income inequality, and

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Speaker 1: that's certainly the case across countries as well. There's some

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Speaker 1: countries that have really re emerged strongly, and there's certain

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Speaker 1: economies and countries that are still struggling quite a bit.

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Speaker 1: And so in that backdrop, in that environment, when there's

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Speaker 1: this increasing tension between haves and have nots, there's an

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Speaker 1: increasing percentage or probability that we do see more disruption,

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Speaker 1: perhaps coming from a geopolitical event, or we talked about

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Speaker 1: the terror threats, or just you know, people feeling a

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Speaker 1: little bit more disengaged, disgruntled, and so certainly that's one

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Speaker 1: to keep in mind. Hard to handicap, of course, from

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Speaker 1: a market perspective, but keep in mind we maybe do

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Speaker 1: for a little bit more severe of a pullback than

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Speaker 1: even what we saw over the last few weeks. I've

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Speaker 1: got to leave it there. Thank you as always of

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Speaker 1: Alliance there. This has been a great joy for us

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Speaker 1: to speak the different mayoral candidates of New York City.

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Speaker 1: It is widely presumed to be a one party city.

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Speaker 1: The Democrat UH mayoral candidates are plenty at Diane Morals

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Speaker 1: joins us right now, and Diane has a certain voice,

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Speaker 1: a certain approach to this is June is here, Diane,

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Speaker 1: what have you changed in your campaign over the last

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Speaker 1: number of days. What is your new message as you

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Speaker 1: go to the middle of June. I guess my new message,

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Speaker 1: which isn't really particularly new at all, UM, is that

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Speaker 1: this campaign is actually intended to make sure that our

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Speaker 1: city comes back in a way that we've never existed before,

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Speaker 1: in a way that recognizes our collective interdependence. UM, and

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Speaker 1: in a way that makes it possible for every New

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Speaker 1: Yorker to live in dignity. We haven't quite lived up

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Speaker 1: to the idea of being the greatest city in the world,

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Speaker 1: and this is our moment to seize that opportunity. You've

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Speaker 1: heard this from other candidates. Frankly, we've seen polarizing candidates

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Speaker 1: and those looking for us out of the pandemic to

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Speaker 1: come together. How do you link that with the budget

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Speaker 1: realities of New York City? Well, you know, I think

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Speaker 1: the budget realities are that while we won't look like

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Speaker 1: we did in twenty nineteen, were still the wealthiest city

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Speaker 1: in the country, if not the world. UM. And there

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Speaker 1: is enough to go around. UM. And that we've seen

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Speaker 1: throughout the course of the pandemic from a from a

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Speaker 1: message of unity. We've seen who it was that kept

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Speaker 1: the city operating. We've seen who it was that made

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Speaker 1: it possible for so many of us who work comfortably

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Speaker 1: from home. UM. And the reality of it is that

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Speaker 1: those are the folks who are also right now the

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Speaker 1: most vulnerable and have been the least protected. UM. And

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Speaker 1: it's a both and situation. We can actually um, you know,

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Speaker 1: make it possible for them to continue in their roles

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Speaker 1: that that make it possible for the rest of us

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Speaker 1: to exist, um, and make it possible for them to

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Speaker 1: live in dignity, which raises a question about paying for

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Speaker 1: proposals that will allow people to live into dignity of

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Speaker 1: all income spheres. And the idea here is also that

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Speaker 1: New York City is already a pretty high tax region,

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Speaker 1: and there already has been discussions of ultra high net

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Speaker 1: worth individuals moving to Florida, moving to Arizona, lower tax states.

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Speaker 1: What's the tipping point in your mind for how high

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Speaker 1: tax rates can go before you get this exodus that

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Speaker 1: becomes counterproductive to the overall revenue of the city. UM.

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Speaker 1: So I guess the first pushback I'll give on that

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Speaker 1: question or the framing of that question, is this this

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Speaker 1: the idea of this exodus. UM. I don't think that

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Speaker 1: the numbers actually bear that out to be true. Um.

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Speaker 1: We've seen that in the course of the last twelve

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Speaker 1: fifteen months. Uh. You know, Wall Street has done this

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Speaker 1: great and created more millionaires and more billionaires. UM. And

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Speaker 1: actually the real estate market is is on an uptick

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Speaker 1: here in New York City. So I don't think those

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Speaker 1: indicators actually support the idea of a mass exodus. UM.

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Speaker 1: I also think that there's a lot that we can

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Speaker 1: do with what we have. UM. When we look at

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Speaker 1: the resources of the city budget, I think there's a

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Speaker 1: lot of reallocation and reinvestment that we could be doing

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Speaker 1: with the dollars that we do have before we even

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Speaker 1: um in Asian the conversation about generating additional resources. UM.

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Speaker 1: But I do think that it's also important for us

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Speaker 1: to have that conversation. I think it is it is fair,

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Speaker 1: um to ask people to pay their fair share. While well, uh,

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Speaker 1: you know, we might say that our tax rates are

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Speaker 1: higher than other places in the country, we also have

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Speaker 1: the greatest concentration of mass wealth. So those two things

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Speaker 1: are actually should go hand in hand, and the idea

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Speaker 1: of comparing us to other cities kind of doesn't make

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Speaker 1: sense given uh, the inordinate wealth that we have here

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Speaker 1: to begin with. Another aspect that a number of mayoral

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Speaker 1: candidates have pointed to that is important to keep businesses

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Speaker 1: here is a crime and keeping crime down. A number

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Speaker 1: of people have talked for no more police, having a

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Speaker 1: task force perhaps in the subway. What's your view on

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Speaker 1: the best way to bring down crime that has been

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Speaker 1: taking up over the past fourteen months. Sure, I mean,

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Speaker 1: I think that the best way to do that is

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Speaker 1: to recognize the link between the increase in crime rate

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Speaker 1: and the increase in insecurity that New Yorkers have experienced

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Speaker 1: about the course of the pandemic. Um. You know, we've

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Speaker 1: we've allowed or housing insecurity to persist, food insecurity has

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Speaker 1: only grown. Um, we haven't provided healthcare in the middle

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Speaker 1: of a global pandemic. So you know, people's individual lives

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Speaker 1: have gotten increasingly insecure, and I think that correlates directly

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Speaker 1: to the increase in violence as people try to figure

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Speaker 1: out how to survive and how to make it in

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Speaker 1: the city. So I think that we the first thing

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Speaker 1: that we need to do is to actually make sure

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Speaker 1: that we're providing people with the access to the resources

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Speaker 1: and supports that they need so that they can actually

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Speaker 1: live safely at home. Dane Morales, thank you again, New

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Speaker 1: York City Mayor at candidate. This is the Bloomberg Surveillance Podcast.

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Speaker 1: Thanks for listening. Join us live weekdays from seven to

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Speaker 1: ten am Eastern on Bloomberg Radio and on Bloomberg Television

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Speaker 1: subscribe to the Surveillance podcast on Apple podcast, SoundCloud, Bloomberg

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Speaker 1: dot com, and of course, on the terminal. I'm Tom

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Speaker 1: keene In. This is Bloomer h