1 00:00:02,360 --> 00:00:06,680 Speaker 1: Bloomberg Audio Studios, podcasts, radio News. 2 00:00:06,920 --> 00:00:09,720 Speaker 2: We'd also like to welcome our listeners from Bloomberg Radio 3 00:00:09,760 --> 00:00:12,039 Speaker 2: as we're now joined by a special guest who runs 4 00:00:12,039 --> 00:00:14,720 Speaker 2: Bank of America, which operates in over thirty five countries, 5 00:00:14,760 --> 00:00:17,200 Speaker 2: including of course here in Japan, where they opened their 6 00:00:17,239 --> 00:00:20,800 Speaker 2: first Tokyo office in nineteen forty seventy fact, Asia accounting 7 00:00:20,800 --> 00:00:23,959 Speaker 2: for about thirty nine percent of the bank's international revenue 8 00:00:24,000 --> 00:00:28,560 Speaker 2: last year. Joining us exclusively is Chairman and CEO Ryan Loihan. 9 00:00:28,600 --> 00:00:30,360 Speaker 3: Brian, good to have you in the Tokyo studio. 10 00:00:30,520 --> 00:00:34,479 Speaker 1: It's good to be here, Sherriet. It's a very exciting 11 00:00:34,479 --> 00:00:35,240 Speaker 1: place these days. 12 00:00:35,479 --> 00:00:38,959 Speaker 2: I mean, you guys have been operating since the end 13 00:00:39,040 --> 00:00:39,960 Speaker 2: of World War Two. 14 00:00:40,080 --> 00:00:41,240 Speaker 3: How is your business going? 15 00:00:41,440 --> 00:00:41,880 Speaker 1: It's great. 16 00:00:42,080 --> 00:00:44,279 Speaker 4: So we operated in the banking side since the end 17 00:00:44,280 --> 00:00:47,280 Speaker 4: of World War two. We've operated on the obscurity side 18 00:00:47,320 --> 00:00:50,120 Speaker 4: and became a full member in eighty six. 19 00:00:50,200 --> 00:00:51,360 Speaker 1: So we've been here a long time. 20 00:00:51,680 --> 00:00:55,160 Speaker 4: About eight hundred teammates, one of the largest non Japanese 21 00:00:55,200 --> 00:01:00,240 Speaker 4: banks in the city. Corporate banking, investment banking, treasury services. 22 00:00:59,760 --> 00:01:02,040 Speaker 1: And obviously the market's business done very well here. 23 00:01:02,400 --> 00:01:05,399 Speaker 2: What parts especially are we seeing more excitement. 24 00:01:04,959 --> 00:01:07,720 Speaker 4: About well, if you think about Japan, the excitement overall 25 00:01:07,880 --> 00:01:11,520 Speaker 4: is the changes in structure. Obviously infrastrate structure coming up 26 00:01:12,200 --> 00:01:14,440 Speaker 4: inflation from a country had no inflation for years for 27 00:01:14,520 --> 00:01:18,679 Speaker 4: thirty years, it changes people's attitudes wage growth. And then 28 00:01:18,720 --> 00:01:20,520 Speaker 4: also on the other side of it, you're seeing the 29 00:01:20,520 --> 00:01:23,600 Speaker 4: corporate reforms going through, which are critical in a push 30 00:01:23,600 --> 00:01:26,560 Speaker 4: for the government to move the money outside the deposit 31 00:01:26,600 --> 00:01:29,360 Speaker 4: banking system into the investment system, which will happen, which 32 00:01:29,360 --> 00:01:30,959 Speaker 4: has drawn a lot of interest from outside world. 33 00:01:30,959 --> 00:01:32,960 Speaker 1: So we're here a lot of M and A dialogue 34 00:01:32,959 --> 00:01:34,680 Speaker 1: and it was up last year and we expected to 35 00:01:34,720 --> 00:01:35,440 Speaker 1: be up this year. 36 00:01:35,920 --> 00:01:38,120 Speaker 4: We're hearing we'e hundred about thirty forty percent of our 37 00:01:38,160 --> 00:01:40,880 Speaker 4: revenues of Asia in here in Japan, so strong. 38 00:01:41,040 --> 00:01:43,520 Speaker 1: We're seeing a lot of market activity and then. 39 00:01:43,600 --> 00:01:46,600 Speaker 4: The flows the capitol flows the treasury services business, which 40 00:01:46,640 --> 00:01:48,240 Speaker 4: is as exciting as an M and A deal, but 41 00:01:48,280 --> 00:01:50,440 Speaker 4: it's critically important the profitability of our company. 42 00:01:50,520 --> 00:01:52,680 Speaker 2: We were just mentioning seven and nine for example, and 43 00:01:52,720 --> 00:01:54,400 Speaker 2: I know that you guys have been involved with them. 44 00:01:54,560 --> 00:01:56,480 Speaker 3: We are now hearing potential listing in the. 45 00:01:56,520 --> 00:01:59,840 Speaker 4: US business that i'd have to lead to my teammates 46 00:02:00,200 --> 00:02:03,200 Speaker 4: get involved in a deal. But look at we are. 47 00:02:03,360 --> 00:02:04,600 Speaker 4: We have a great team here and they do a 48 00:02:04,600 --> 00:02:07,160 Speaker 4: great job. And if they think it's right off for customers, 49 00:02:07,240 --> 00:02:08,600 Speaker 4: they'll tell them and we'll see what happens. 50 00:02:08,639 --> 00:02:11,000 Speaker 3: But that's the sort of part of that corporate reform story. 51 00:02:11,120 --> 00:02:12,760 Speaker 1: Yeah, that is that's the idea. 52 00:02:12,800 --> 00:02:16,080 Speaker 4: We've been with government officials and clients and the companies 53 00:02:16,080 --> 00:02:19,080 Speaker 4: are excited to have a you know, in the classic word, 54 00:02:19,080 --> 00:02:21,800 Speaker 4: animal spirits. Let's get moving, let's merge these companies together, 55 00:02:21,880 --> 00:02:24,320 Speaker 4: let's modernize them, let's keep working on the cost structure. 56 00:02:24,560 --> 00:02:26,880 Speaker 4: You have, you know, a very low unemployment rate here, 57 00:02:27,040 --> 00:02:29,440 Speaker 4: you know, two percent plus, you know, very low. There's 58 00:02:29,480 --> 00:02:32,960 Speaker 4: plenty of capacity to absorb, you know, employees, there's a 59 00:02:32,960 --> 00:02:36,959 Speaker 4: little more competition for wages, wage competition for employees, wage growth. 60 00:02:37,000 --> 00:02:38,840 Speaker 1: So I think all that sets up the ability to 61 00:02:38,840 --> 00:02:40,680 Speaker 1: get the reforms going through, whether. 62 00:02:40,520 --> 00:02:44,639 Speaker 4: The corporate reforms return reforms that demands that you've got 63 00:02:44,680 --> 00:02:48,160 Speaker 4: to return capital, getting cash off the balance to these corporates, 64 00:02:48,160 --> 00:02:49,800 Speaker 4: either back to shareholders. 65 00:02:49,280 --> 00:02:50,000 Speaker 1: To do something. 66 00:02:50,240 --> 00:02:51,639 Speaker 4: But in the end of the day, you've got to 67 00:02:51,639 --> 00:02:53,120 Speaker 4: come back and it's got to be wise deals. They 68 00:02:53,120 --> 00:02:56,519 Speaker 4: are strategically important. That add value because spending money is 69 00:02:56,520 --> 00:02:58,839 Speaker 4: the easy part. Making it really get the returns after 70 00:02:58,840 --> 00:02:59,680 Speaker 4: you spend it is the hard part. 71 00:02:59,720 --> 00:03:01,680 Speaker 2: There's we're in the pipeline for Bank of America here. 72 00:03:01,720 --> 00:03:02,800 Speaker 2: When it comes to deals. 73 00:03:02,520 --> 00:03:05,480 Speaker 4: This yeah, yeah, it just the amount of conversation, amount excitement, 74 00:03:05,520 --> 00:03:09,040 Speaker 4: both inbound from outside the rest of the world and 75 00:03:09,080 --> 00:03:12,840 Speaker 4: also outbound from the large companies here continue to expand, 76 00:03:13,040 --> 00:03:16,040 Speaker 4: you know, across Asia, but importantly into the United States 77 00:03:16,080 --> 00:03:18,760 Speaker 4: because frankly, a lot of the manufacturing debate that you 78 00:03:19,000 --> 00:03:21,760 Speaker 4: talked about in the earlier section is they need to 79 00:03:21,760 --> 00:03:25,480 Speaker 4: expand their manufacturing to maybe avoid potential terrorists, which is unknown. 80 00:03:25,520 --> 00:03:26,080 Speaker 1: What's going on. 81 00:03:26,440 --> 00:03:29,119 Speaker 2: Yeah, how much does that add to business uncertainty for you? 82 00:03:29,760 --> 00:03:32,400 Speaker 1: Well, I think clearly on the business side. 83 00:03:33,400 --> 00:03:36,600 Speaker 4: After the election, you had businesses very enthusiastic about the 84 00:03:36,600 --> 00:03:39,440 Speaker 4: lower regulatory birden they'd have the ability to get deals done. 85 00:03:39,480 --> 00:03:42,480 Speaker 4: And you went from conversations last summer which were sort 86 00:03:42,520 --> 00:03:45,240 Speaker 4: of interesting conversations with the boards. Our teammates tell me, 87 00:03:45,240 --> 00:03:46,600 Speaker 4: they go in and they talk and they'd show them 88 00:03:46,600 --> 00:03:48,680 Speaker 4: these deals and so that makes sense, but it may 89 00:03:48,720 --> 00:03:51,000 Speaker 4: be hard to get it done now, to get in. 90 00:03:50,880 --> 00:03:52,360 Speaker 1: Here and let's talk about these deals. 91 00:03:52,840 --> 00:03:57,640 Speaker 4: The you know, the Trump President Trump's administration has made 92 00:03:57,640 --> 00:03:59,720 Speaker 4: it clear they're trying to get some things done, which 93 00:03:59,720 --> 00:04:02,000 Speaker 4: may some short term you know, sort of lack of 94 00:04:02,080 --> 00:04:04,880 Speaker 4: understanding that affects a business community. But they're saying at 95 00:04:04,880 --> 00:04:06,880 Speaker 4: the end of the day, you know, and the President 96 00:04:06,880 --> 00:04:09,120 Speaker 4: said in speech Elarier, we may have some short term 97 00:04:09,160 --> 00:04:12,040 Speaker 4: disruption to get to the long term goal of downsizing government, 98 00:04:12,080 --> 00:04:15,160 Speaker 4: downsizing regulation, et cetera. And I think the businesses now 99 00:04:15,200 --> 00:04:17,599 Speaker 4: are sort of say, I've got to figure that answer out. 100 00:04:17,640 --> 00:04:20,200 Speaker 4: And that's fine because it's what it feels like forever 101 00:04:20,480 --> 00:04:23,440 Speaker 4: a month or two or three. But meanwhile, on the 102 00:04:23,440 --> 00:04:25,880 Speaker 4: consumer side, you're not seeing any change in activity despite 103 00:04:25,920 --> 00:04:27,279 Speaker 4: what they're saying, which is interesting. 104 00:04:27,680 --> 00:04:29,240 Speaker 2: Tell us a little bit about that, because in your 105 00:04:29,320 --> 00:04:32,320 Speaker 2: last earnings calling January, and that was before the inauguration 106 00:04:32,400 --> 00:04:34,920 Speaker 2: of President Trump, you were saying that consumers were still 107 00:04:34,920 --> 00:04:36,200 Speaker 2: spending more than last year. 108 00:04:36,279 --> 00:04:37,080 Speaker 3: Is that still the case? 109 00:04:37,360 --> 00:04:39,560 Speaker 4: So if this is sort of the dichotomy of what 110 00:04:39,560 --> 00:04:42,600 Speaker 4: a consumer says they're thinking about versus what they actually do. 111 00:04:42,720 --> 00:04:45,599 Speaker 4: So if you read the story the information of the 112 00:04:45,640 --> 00:04:48,920 Speaker 4: last month or so consumer conferences come down, and they're 113 00:04:48,920 --> 00:04:51,080 Speaker 4: worried about inflation going up and all that. 114 00:04:51,080 --> 00:04:53,440 Speaker 1: That's that's sort of what they say they're going to do. 115 00:04:53,520 --> 00:04:54,440 Speaker 1: What they really are doing. 116 00:04:54,520 --> 00:04:56,640 Speaker 4: In the month of February, they spent six percent more 117 00:04:56,640 --> 00:04:59,560 Speaker 4: money out of our accounts into the economy than they 118 00:04:59,560 --> 00:05:02,400 Speaker 4: did last February, and year to date it's about six 119 00:05:02,480 --> 00:05:05,160 Speaker 4: and a half percent. You compare that to the fourth quarter, 120 00:05:05,200 --> 00:05:06,599 Speaker 4: it was about four and a half percent. We felt 121 00:05:06,640 --> 00:05:09,279 Speaker 4: pretty good about that. So the consumer is still spending. 122 00:05:09,360 --> 00:05:10,640 Speaker 4: And by the way, if you look good, what they 123 00:05:10,680 --> 00:05:14,440 Speaker 4: spent on food basically flat in February. So despite the 124 00:05:14,480 --> 00:05:17,520 Speaker 4: discussion about eight prices and things, the actual total expenditures 125 00:05:17,520 --> 00:05:21,880 Speaker 4: about flat, services, travel, entertainment growing and that helps drive 126 00:05:22,000 --> 00:05:25,880 Speaker 4: jobs because those all spending by consumers drives jobs. But 127 00:05:25,880 --> 00:05:28,760 Speaker 4: the ones that are service oriented and the entertainment require 128 00:05:28,839 --> 00:05:29,760 Speaker 4: a lot of people's services. 129 00:05:29,880 --> 00:05:30,040 Speaker 3: I mean. 130 00:05:30,120 --> 00:05:32,360 Speaker 2: All their policies from the administration, though a little bit 131 00:05:32,360 --> 00:05:35,040 Speaker 2: more disruptive when it comes to say immigration and hiring 132 00:05:35,120 --> 00:05:37,520 Speaker 2: for these small and medium sized businesses. 133 00:05:37,520 --> 00:05:39,560 Speaker 4: Well, if you go to small medium sized businesses, they've 134 00:05:39,600 --> 00:05:42,280 Speaker 4: been facing two issues. One is the real cost of 135 00:05:42,640 --> 00:05:44,880 Speaker 4: money went up a lot for them because they borrow 136 00:05:44,880 --> 00:05:47,359 Speaker 4: on lines of credit, short term lines of credit, and 137 00:05:47,440 --> 00:05:49,839 Speaker 4: so they have to make sure when you're talking about 138 00:05:50,480 --> 00:05:53,279 Speaker 4: so for four and a half percent or whatever plus 139 00:05:53,440 --> 00:05:57,080 Speaker 4: they're spread, that was so for fifty basis points plus 140 00:05:57,200 --> 00:05:58,520 Speaker 4: or spread, that was a big change in rates. 141 00:05:58,520 --> 00:05:59,640 Speaker 1: They had to always be more careful. 142 00:05:59,720 --> 00:06:02,280 Speaker 4: You saw them kind of conservabily handled their lines of 143 00:06:02,320 --> 00:06:05,520 Speaker 4: credit usage and stuff. Then the election happens and they 144 00:06:05,520 --> 00:06:08,679 Speaker 4: feel really good about the regulatory but they started noticing 145 00:06:08,720 --> 00:06:11,720 Speaker 4: that we're getting be able to hire as easily, and so. 146 00:06:11,680 --> 00:06:12,400 Speaker 1: They're worried about. 147 00:06:13,200 --> 00:06:15,360 Speaker 4: Where people think they're worried about inflation, they're actually right 148 00:06:15,360 --> 00:06:18,239 Speaker 4: now a little bit worried about getting employees and running 149 00:06:18,279 --> 00:06:20,400 Speaker 4: the businesses. And I think as these policies settle in, 150 00:06:20,839 --> 00:06:21,920 Speaker 4: you'll see them settle in. 151 00:06:21,960 --> 00:06:24,280 Speaker 1: But you know, they were over regulated. 152 00:06:25,160 --> 00:06:28,400 Speaker 4: All companies were, but the small medium sized businesses have 153 00:06:28,480 --> 00:06:33,520 Speaker 4: felt all the labor regulation stuff. We have thousands of 154 00:06:33,520 --> 00:06:35,200 Speaker 4: people can deal it. They don't. And so if you're 155 00:06:35,279 --> 00:06:37,440 Speaker 4: running your own business, you know, and they feel good 156 00:06:37,440 --> 00:06:39,680 Speaker 4: about that, but it's offset by let's get a set 157 00:06:39,720 --> 00:06:41,560 Speaker 4: of rules set and then we can go How soon. 158 00:06:41,520 --> 00:06:43,240 Speaker 2: Do you think they'll get some help from the federal 159 00:06:43,279 --> 00:06:44,719 Speaker 2: reserve by lower rates. 160 00:06:45,160 --> 00:06:47,200 Speaker 4: Well, you know, the market now I think put three 161 00:06:47,240 --> 00:06:49,440 Speaker 4: cuts in after some of the data they and the 162 00:06:49,480 --> 00:06:51,920 Speaker 4: market's been all over the place in a sense, because 163 00:06:52,320 --> 00:06:54,159 Speaker 4: over the last ninety one hundred and twenty days, I 164 00:06:54,160 --> 00:06:55,599 Speaker 4: bet you we've had five. 165 00:06:55,560 --> 00:06:57,840 Speaker 1: Six cuts to zero cuts back three cuts. 166 00:06:58,040 --> 00:07:00,240 Speaker 4: Our team believes that the FED is kind of done 167 00:07:00,279 --> 00:07:03,440 Speaker 4: cutting rates until inflation kind of gets in control. They 168 00:07:03,480 --> 00:07:07,360 Speaker 4: believe that the and I'd say they may as they're 169 00:07:07,400 --> 00:07:09,720 Speaker 4: thinking about that, given that if these chairffs go in, 170 00:07:09,760 --> 00:07:11,720 Speaker 4: they thought they would have some impact on the growth 171 00:07:11,760 --> 00:07:14,200 Speaker 4: in the US, and that may cause them to think 172 00:07:14,200 --> 00:07:16,160 Speaker 4: about that. But right now they're saying, look, you've got 173 00:07:16,280 --> 00:07:18,480 Speaker 4: a real rate structure which has fed, You've got employment 174 00:07:18,480 --> 00:07:21,400 Speaker 4: pretty stable and loosened a lot over the last year. 175 00:07:21,800 --> 00:07:24,480 Speaker 4: And so maybe it's their view is there'll be no cuts. 176 00:07:25,120 --> 00:07:26,960 Speaker 4: We'll see what happens if they start. 177 00:07:26,720 --> 00:07:29,600 Speaker 2: To see also inflation is getting under control or there 178 00:07:29,640 --> 00:07:30,200 Speaker 2: are upside. 179 00:07:30,840 --> 00:07:33,640 Speaker 4: Our team, our team of economists always thought it would 180 00:07:33,640 --> 00:07:35,680 Speaker 4: take three years to get inflation under control, and so 181 00:07:36,160 --> 00:07:38,600 Speaker 4: and they're they projected to get down near the target 182 00:07:38,680 --> 00:07:40,800 Speaker 4: towards the end of twenty six, but takes that long 183 00:07:40,880 --> 00:07:43,040 Speaker 4: and every sense. Why isn't happen faster? It just takes 184 00:07:43,080 --> 00:07:44,880 Speaker 4: a while for the all works through the system, especially 185 00:07:44,880 --> 00:07:46,200 Speaker 4: with the amount of stimulus. 186 00:07:45,800 --> 00:07:47,360 Speaker 3: And other things that went on in the meantime. 187 00:07:47,440 --> 00:07:50,080 Speaker 2: You talk about markets being all over the place, has 188 00:07:50,120 --> 00:07:52,920 Speaker 2: not increased your activity in that sense? And business and 189 00:07:53,120 --> 00:07:53,960 Speaker 2: market activity, well. 190 00:07:53,880 --> 00:07:55,520 Speaker 4: If you look at the first quarter, you know, we 191 00:07:55,640 --> 00:07:59,120 Speaker 4: told our we gave our guidance in our first quarter call, 192 00:07:59,160 --> 00:08:02,480 Speaker 4: and I is going to be a flatish quarter, a 193 00:08:02,560 --> 00:08:04,800 Speaker 4: quarter with two less days. That looks in great shape. 194 00:08:04,840 --> 00:08:07,600 Speaker 4: Loans and deposits or get what we expected happen. The 195 00:08:07,680 --> 00:08:11,640 Speaker 4: trading revenues ben strong and up from last year amid 196 00:08:11,720 --> 00:08:13,680 Speaker 4: single digits type of numbers. So we feel very good, 197 00:08:13,960 --> 00:08:18,120 Speaker 4: i'd say, the M and the deck capital markets open 198 00:08:18,160 --> 00:08:21,320 Speaker 4: and prossing through. We're the equity capital markets, as we 199 00:08:21,360 --> 00:08:22,080 Speaker 4: talked about, at. 200 00:08:22,240 --> 00:08:24,920 Speaker 1: A little slower than but still solid. 201 00:08:24,960 --> 00:08:27,160 Speaker 4: Everything's in good shape. Whether and then as you know, 202 00:08:27,200 --> 00:08:28,920 Speaker 4: then the wealth management business is very strong. So we 203 00:08:28,960 --> 00:08:32,080 Speaker 4: feel very good about the current prospects of our company. 204 00:08:32,320 --> 00:08:34,600 Speaker 2: The same here in japound because we saw the brokers 205 00:08:34,640 --> 00:08:36,559 Speaker 2: you then, for example, posting a loss for Bank of 206 00:08:36,640 --> 00:08:38,960 Speaker 2: American twenty twenty three, did it get better last year. 207 00:08:39,160 --> 00:08:42,320 Speaker 4: Yeah, you got to be careful of our legal entities 208 00:08:42,360 --> 00:08:45,079 Speaker 4: because there's we don't run the business that way, run 209 00:08:45,080 --> 00:08:47,560 Speaker 4: the global things. But the group here made about thirty 210 00:08:47,559 --> 00:08:50,400 Speaker 4: percent of the pre tax profit for Asia. They're very 211 00:08:50,400 --> 00:08:53,360 Speaker 4: strong group, and so sometimes the mechanics of how that 212 00:08:53,440 --> 00:08:55,480 Speaker 4: runs through because of the bank and the broker dealer 213 00:08:55,520 --> 00:08:57,880 Speaker 4: and the parent. I wouldn't get too concerned about the 214 00:08:58,160 --> 00:09:00,520 Speaker 4: are too interested in the legal entity when it. 215 00:09:00,440 --> 00:09:02,800 Speaker 2: Comes to the JGB trading us for those things. Are 216 00:09:02,840 --> 00:09:04,719 Speaker 2: you seeing more interests? Are you building that up? 217 00:09:04,880 --> 00:09:05,080 Speaker 1: Yeah? 218 00:09:05,160 --> 00:09:07,800 Speaker 4: We continue to add people in the trading business across 219 00:09:07,840 --> 00:09:10,480 Speaker 4: the world. Honestly, Jimmy Demart's on a great job. We've 220 00:09:10,520 --> 00:09:12,760 Speaker 4: moved up about two hundred basis points or so in 221 00:09:12,840 --> 00:09:15,000 Speaker 4: market share across the last five years. We give them 222 00:09:15,000 --> 00:09:17,160 Speaker 4: more balance sheet, more risks to take. They've done a 223 00:09:17,160 --> 00:09:19,120 Speaker 4: good job of deploying it, and they keep adding everywhere 224 00:09:19,160 --> 00:09:20,120 Speaker 4: as the activity picks up. 225 00:09:20,160 --> 00:09:21,320 Speaker 1: We're adding people here too. 226 00:09:21,720 --> 00:09:23,600 Speaker 2: Yeah, because I mean, for the first time in a 227 00:09:23,720 --> 00:09:25,920 Speaker 2: very long time, we are seeing a lot of volatility 228 00:09:25,960 --> 00:09:28,280 Speaker 2: in the rates market, a lot of interest as well. 229 00:09:29,240 --> 00:09:33,559 Speaker 2: We've heard about difficulties hiring, for example, rates traders because 230 00:09:33,880 --> 00:09:36,280 Speaker 2: all of a sudden this became so exciting. 231 00:09:37,080 --> 00:09:38,440 Speaker 1: That's that's going to be true. 232 00:09:38,440 --> 00:09:41,160 Speaker 4: And I think one of the keys and you be 233 00:09:41,240 --> 00:09:44,040 Speaker 4: personally think there's a lot more people coming from the 234 00:09:44,040 --> 00:09:49,160 Speaker 4: outside to work in Japan, and the rules and regulations 235 00:09:49,160 --> 00:09:51,800 Speaker 4: allow that to happen. So we'll also hire internal people, 236 00:09:51,800 --> 00:09:53,440 Speaker 4: but if there's not enough, we'll bring people from around 237 00:09:53,480 --> 00:09:55,679 Speaker 4: the world to help on. It's exciting to a city 238 00:09:55,679 --> 00:09:57,160 Speaker 4: to live in in Tokyo, so it's not hard to 239 00:09:57,160 --> 00:09:59,280 Speaker 4: get people to come here, and it's you're able to 240 00:09:59,280 --> 00:10:01,920 Speaker 4: get them in, and so we feel good about that. 241 00:10:02,040 --> 00:10:05,280 Speaker 4: And from the country's perspective, that's one of the things. 242 00:10:05,320 --> 00:10:07,959 Speaker 4: After women came into workforce and after there were people 243 00:10:07,960 --> 00:10:10,080 Speaker 4: worked a little longer, what you're seeing is foreign workers 244 00:10:10,400 --> 00:10:13,040 Speaker 4: coming in of all different types stuff, and so we 245 00:10:13,080 --> 00:10:15,040 Speaker 4: feel good about that. We can get prospects here, but 246 00:10:15,040 --> 00:10:17,200 Speaker 4: it is a tight labor market. There's no question, a 247 00:10:17,200 --> 00:10:19,040 Speaker 4: lot of talent, a lot of talent, but a lot 248 00:10:19,040 --> 00:10:19,959 Speaker 4: of demand for that talent. 249 00:10:20,559 --> 00:10:23,640 Speaker 2: We are seeing also a lot of interest by activists, investors, 250 00:10:23,679 --> 00:10:26,080 Speaker 2: and you have a big advisory in that sect or 251 00:10:26,120 --> 00:10:27,080 Speaker 2: what are you seeing it? 252 00:10:27,280 --> 00:10:30,160 Speaker 4: We agree with you and I think I'd be careful 253 00:10:30,200 --> 00:10:35,280 Speaker 4: about only equitting that actives. Investor is the pronouncements by 254 00:10:35,320 --> 00:10:37,280 Speaker 4: the government and the exchange and stuff that you've got 255 00:10:37,280 --> 00:10:40,080 Speaker 4: to move. The amount of cash on these balance sheets 256 00:10:40,080 --> 00:10:43,839 Speaker 4: are making things happen. So activists can catalyze activity, But 257 00:10:43,880 --> 00:10:45,320 Speaker 4: at the end of the day, what's going to also 258 00:10:45,360 --> 00:10:48,640 Speaker 4: catalyze activities? Boards of directors and management teams saying we 259 00:10:48,679 --> 00:10:52,400 Speaker 4: have been given a mandate to change and now with 260 00:10:52,520 --> 00:10:56,400 Speaker 4: the interest rate and inflation and things of more a 261 00:10:56,480 --> 00:10:59,840 Speaker 4: billion economy we got japand growing at one percent. 262 00:11:00,080 --> 00:11:02,200 Speaker 1: Doesn't sound great except for where it came from. 263 00:11:02,240 --> 00:11:04,400 Speaker 4: That is great, and so I think that is going 264 00:11:04,440 --> 00:11:06,920 Speaker 4: to cause more activity necessarily. So, yes, there's activists, and 265 00:11:06,960 --> 00:11:10,079 Speaker 4: we have an advisory business that helps people through that discussion, 266 00:11:10,160 --> 00:11:13,920 Speaker 4: and they cause activity, But the Imperor moder or the 267 00:11:14,160 --> 00:11:17,320 Speaker 4: impro modit by the government to drive activity also causes it. 268 00:11:17,400 --> 00:11:19,480 Speaker 1: And when I talk to CEOs. 269 00:11:19,080 --> 00:11:21,280 Speaker 4: Of companies of big market caps, they're figuring out how 270 00:11:21,320 --> 00:11:23,560 Speaker 4: to reposition themselves to keep driving. 271 00:11:23,880 --> 00:11:26,240 Speaker 2: Are you using more of Bank of America's balance sheeting 272 00:11:26,280 --> 00:11:29,720 Speaker 2: trading here in Japan compared to other parts of Asia. 273 00:11:30,160 --> 00:11:33,120 Speaker 4: Well, that ages we have five or six percent growth 274 00:11:33,200 --> 00:11:34,600 Speaker 4: so you really have to be careful. So in Australia 275 00:11:34,640 --> 00:11:37,880 Speaker 4: we have a great business and so we've added about 276 00:11:37,920 --> 00:11:41,040 Speaker 4: two hundred billion dollars across the world and trading balance 277 00:11:41,080 --> 00:11:43,200 Speaker 4: sheet and what percentage of when here I have to 278 00:11:43,200 --> 00:11:44,559 Speaker 4: get somebody give me the statistics. 279 00:11:44,600 --> 00:11:47,120 Speaker 1: But it's it's we're supporting the business everywhere. 280 00:11:48,720 --> 00:11:50,680 Speaker 2: Some of the things that we've seen across the world. 281 00:11:50,720 --> 00:11:52,800 Speaker 2: Of course, we've talked a little bit about the fragmentation 282 00:11:52,920 --> 00:11:56,520 Speaker 2: about tariffs. When you see that growing rivalry between China 283 00:11:57,120 --> 00:11:59,840 Speaker 2: and the US, for example, is that something that concerns 284 00:11:59,840 --> 00:12:01,679 Speaker 2: you as a CEO when you look at Bank of 285 00:12:01,760 --> 00:12:04,640 Speaker 2: America's business. 286 00:12:03,559 --> 00:12:07,160 Speaker 4: Well, our business is going to reflect our customers and clients, 287 00:12:07,280 --> 00:12:10,400 Speaker 4: and so in the US that's you know, consumers and 288 00:12:11,120 --> 00:12:14,480 Speaker 4: wealthy consumers and business business of all size and corporates 289 00:12:14,520 --> 00:12:18,120 Speaker 4: and then investors. Outside the US, our business is very 290 00:12:18,480 --> 00:12:22,400 Speaker 4: very specific. It's it's large companies, it's in large investors, 291 00:12:22,679 --> 00:12:25,520 Speaker 4: and so anything that causes them to move money, we 292 00:12:25,559 --> 00:12:28,400 Speaker 4: have to follow and help them do it. So so 293 00:12:29,000 --> 00:12:32,160 Speaker 4: it'd be great if everybody were all on the same 294 00:12:32,160 --> 00:12:33,320 Speaker 4: page and everything was perfect. 295 00:12:33,360 --> 00:12:35,400 Speaker 1: That just never happens. It's never happened in world's history. 296 00:12:35,400 --> 00:12:38,040 Speaker 4: It's not gonna happen tomorrow either, So I think the 297 00:12:38,559 --> 00:12:40,480 Speaker 4: concerns of how to move money around and how to 298 00:12:40,800 --> 00:12:42,600 Speaker 4: where to invest, you know. I think in the end 299 00:12:42,600 --> 00:12:44,080 Speaker 4: of to day, we're sitting here in Tokyo. This has 300 00:12:44,120 --> 00:12:46,640 Speaker 4: become a favorite place to look, and there's other places 301 00:12:46,679 --> 00:12:48,079 Speaker 4: like this around the world. The United States is a 302 00:12:48,080 --> 00:12:50,840 Speaker 4: strong place to look as we travel around Europe and 303 00:12:50,920 --> 00:12:52,559 Speaker 4: other places. So I think it's really going to reflect 304 00:12:52,600 --> 00:12:55,720 Speaker 4: those customers as opposed to us catalyzing activity and us 305 00:12:55,800 --> 00:12:58,640 Speaker 4: running our business differently. We run our business to support 306 00:12:58,640 --> 00:13:01,640 Speaker 4: our customers and clients, and they dictate the activity, and 307 00:13:01,679 --> 00:13:03,760 Speaker 4: then we help advise them about that activity. And what 308 00:13:03,760 --> 00:13:06,240 Speaker 4: we're saying is their enthusiastic about the growth in the US, 309 00:13:06,240 --> 00:13:08,680 Speaker 4: a growth on a global basis three percent plus the 310 00:13:08,760 --> 00:13:10,680 Speaker 4: rate structure coming down a little bit across the world. 311 00:13:10,760 --> 00:13:13,520 Speaker 4: DCB cut rates, so feeling good about it. They just 312 00:13:13,559 --> 00:13:17,720 Speaker 4: need a business likes plans three, five, seven, ten year cycles, 313 00:13:17,960 --> 00:13:19,920 Speaker 4: and it's hard to do that when there's this much movement. 314 00:13:19,960 --> 00:13:22,880 Speaker 4: But on the other hand, they face this all the time. 315 00:13:24,960 --> 00:13:27,000 Speaker 2: You've been at your post for a long time, so 316 00:13:27,120 --> 00:13:30,720 Speaker 2: you don't see this time as any different from past cycles. 317 00:13:30,960 --> 00:13:33,760 Speaker 4: Well, you know, I always look at it in the context. 318 00:13:34,360 --> 00:13:36,319 Speaker 4: Look believe me, right after the financial crisis is a 319 00:13:36,360 --> 00:13:39,080 Speaker 4: kind of interesting world out there, and the shuffling of 320 00:13:39,120 --> 00:13:41,880 Speaker 4: all the activities, and so every time has its unique things. 321 00:13:41,880 --> 00:13:43,800 Speaker 4: What we do in the company is really focus on 322 00:13:43,880 --> 00:13:47,280 Speaker 4: driving our managers. We have to grow no excuses, and 323 00:13:47,320 --> 00:13:48,600 Speaker 4: we have to do with the right risk, and we 324 00:13:48,640 --> 00:13:50,400 Speaker 4: have to do it with a great team, and we 325 00:13:50,440 --> 00:13:54,880 Speaker 4: have to keep driving efficiency effectiveness. So the rules and 326 00:13:54,920 --> 00:13:58,559 Speaker 4: regulations that our industry is looking in the United States 327 00:13:58,640 --> 00:14:03,079 Speaker 4: for a reduct and regulation regulatory burden that build up 328 00:14:03,320 --> 00:14:05,760 Speaker 4: after the financial crisis for good reason, but kept building 329 00:14:05,840 --> 00:14:08,320 Speaker 4: up when the reason wasn't as good. Those things are 330 00:14:08,320 --> 00:14:10,760 Speaker 4: important to us because franklus to serve our customers. 331 00:14:10,920 --> 00:14:12,240 Speaker 3: You're having those conversations right now. 332 00:14:13,280 --> 00:14:14,240 Speaker 1: It's been going on for a while. 333 00:14:14,320 --> 00:14:18,040 Speaker 4: It's and so uh, the Secretary Treasury spoke yesterday and 334 00:14:18,040 --> 00:14:19,840 Speaker 4: New York can laid out some of his thoughts and 335 00:14:19,880 --> 00:14:20,920 Speaker 4: so this isn't new. 336 00:14:20,960 --> 00:14:23,080 Speaker 1: This was going on for a while, and so our 337 00:14:23,160 --> 00:14:24,920 Speaker 1: job is to get the set of rules that are 338 00:14:24,960 --> 00:14:25,400 Speaker 1: fair and. 339 00:14:25,360 --> 00:14:28,400 Speaker 4: Down the middle and help you know, uh, businesses be 340 00:14:28,440 --> 00:14:31,600 Speaker 4: strong and help the economy grow with the right risk management. 341 00:14:31,640 --> 00:14:34,800 Speaker 4: And I think the the so you know the is 342 00:14:34,800 --> 00:14:35,960 Speaker 4: it different, It's always different. 343 00:14:35,960 --> 00:14:37,560 Speaker 1: Tomorrow will be different than the day. There'll be different 344 00:14:37,560 --> 00:14:38,240 Speaker 1: set of factors. 345 00:14:38,480 --> 00:14:40,720 Speaker 4: The question how we run our companies consistent and we 346 00:14:40,800 --> 00:14:43,400 Speaker 4: run that company to have how we drive it is 347 00:14:43,440 --> 00:14:45,720 Speaker 4: important to serve those clients. Do it the right way, 348 00:14:46,120 --> 00:14:48,000 Speaker 4: do it and make good money, and do it the 349 00:14:48,040 --> 00:14:48,400 Speaker 4: right way. 350 00:14:48,480 --> 00:14:52,520 Speaker 2: The shift in geopolitics in the world environment, macroeconomics, but 351 00:14:52,560 --> 00:14:55,560 Speaker 2: also it seems in culture as well, this rollback and 352 00:14:55,680 --> 00:14:59,120 Speaker 2: the initiatives for example, which includes the Bank of America. Well, 353 00:14:59,120 --> 00:15:01,560 Speaker 2: we have a negative fact especially across Wall Street. 354 00:15:02,200 --> 00:15:05,440 Speaker 4: Look, we think of our company as creating opportunity, and 355 00:15:05,520 --> 00:15:07,120 Speaker 4: think of it two ways. You can look in the mirror, 356 00:15:07,160 --> 00:15:09,760 Speaker 4: you can look in the window, and so the mirror 357 00:15:09,760 --> 00:15:10,720 Speaker 4: it's who we hire. 358 00:15:10,720 --> 00:15:12,720 Speaker 1: We hire from four hundred plus schools, we go to, 359 00:15:13,200 --> 00:15:13,680 Speaker 1: we hire. 360 00:15:14,480 --> 00:15:17,000 Speaker 4: We hired thirty thousand people from low modern income neighborhoods, 361 00:15:17,000 --> 00:15:20,400 Speaker 4: giving an economic they wouldn't otherwise have ten to fifteen 362 00:15:20,400 --> 00:15:23,120 Speaker 4: thousand veterans over the last five six seven years. So 363 00:15:23,160 --> 00:15:27,240 Speaker 4: we hire people and create opportunity for them and those 364 00:15:27,320 --> 00:15:30,360 Speaker 4: teammates then can do everything you want to do. Last night, 365 00:15:30,360 --> 00:15:33,040 Speaker 4: we had an alumni group here in Tokyo, and you had 366 00:15:33,040 --> 00:15:35,040 Speaker 4: people who worked our company fifteen years and went off 367 00:15:35,080 --> 00:15:37,680 Speaker 4: the good helped create a startup and stuff, which is 368 00:15:37,720 --> 00:15:40,960 Speaker 4: also good for the Tokyo, Japan economy. And you had 369 00:15:41,000 --> 00:15:43,120 Speaker 4: other people retired and other people did a lot of things. 370 00:15:43,160 --> 00:15:45,480 Speaker 4: But the idea is we create opportunity. That's the window. 371 00:15:45,520 --> 00:15:48,000 Speaker 4: And once they're here, then the question of how they 372 00:15:48,000 --> 00:15:50,280 Speaker 4: feel is important, and so we have you know, three 373 00:15:50,360 --> 00:15:54,120 Speaker 4: hundred thousand memberships on employee groups, et cetera. The rules 374 00:15:54,200 --> 00:15:56,240 Speaker 4: change the United States, we had to change to reflect that. 375 00:15:56,600 --> 00:15:59,280 Speaker 4: But the principle of having a great workforce that is 376 00:15:59,320 --> 00:16:01,320 Speaker 4: well trained has a chance to do everything you want 377 00:16:01,360 --> 00:16:03,240 Speaker 4: to do at Bank of America and recognize their. 378 00:16:03,160 --> 00:16:04,720 Speaker 1: Opportunity is good. 379 00:16:04,960 --> 00:16:07,000 Speaker 4: Outside our company, we also look at the opportunity to 380 00:16:07,000 --> 00:16:09,200 Speaker 4: create that through our lending activity and everything, and also 381 00:16:09,240 --> 00:16:12,000 Speaker 4: the programs that we work with to help other companies 382 00:16:12,040 --> 00:16:13,840 Speaker 4: find and access teammates who are going to get an 383 00:16:13,840 --> 00:16:14,800 Speaker 4: economic opportunity. 384 00:16:14,800 --> 00:16:16,880 Speaker 1: You join our company, you start at fifty thousand dollars. 385 00:16:17,120 --> 00:16:20,080 Speaker 4: You get all the benefits, you get training, you get education, reimbursement, 386 00:16:20,480 --> 00:16:22,040 Speaker 4: and when I meet with the teammates have been with 387 00:16:22,160 --> 00:16:25,080 Speaker 4: us fifteen sixty years. They started as seventeen or eighteen 388 00:16:25,120 --> 00:16:29,360 Speaker 4: year old kids in part time and now fifty years later, 389 00:16:29,360 --> 00:16:31,000 Speaker 4: had a great career. That's what we want people to have. 390 00:16:31,000 --> 00:16:32,920 Speaker 2: A Bank of American, right, I'm Onie Hot, you have 391 00:16:33,000 --> 00:16:35,680 Speaker 2: to join us again. You've talked about how many opportunities 392 00:16:35,680 --> 00:16:37,840 Speaker 2: you see in Asia, especially Japan, so it was really 393 00:16:37,840 --> 00:16:40,040 Speaker 2: great talking to you. Thank you so much for coming here. 394 00:16:40,360 --> 00:16:43,640 Speaker 2: He's a chairman and CEO at Bank of America.