1 00:00:02,400 --> 00:00:06,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. 2 00:00:11,680 --> 00:00:15,480 Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 3 00:00:15,480 --> 00:00:18,720 Speaker 2: with Lisa Bromwitz and Amrie Hordern. Join us each day 4 00:00:18,760 --> 00:00:22,280 Speaker 2: for insight from the best in markets, economics, and geopolitics 5 00:00:22,440 --> 00:00:24,880 Speaker 2: from our global headquarters in New York City. We are 6 00:00:24,960 --> 00:00:27,680 Speaker 2: live on Bloomberg Television weekday mornings from six to nine 7 00:00:27,720 --> 00:00:31,319 Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify or 8 00:00:31,320 --> 00:00:33,960 Speaker 2: anywhere else you listen, and as always on the Bloomberg 9 00:00:34,040 --> 00:00:37,400 Speaker 2: Terminal and the Bloomberg Business app Danny if you had 10 00:00:37,440 --> 00:00:40,199 Speaker 2: any research writing. Everyone's on the lookout for signs of 11 00:00:40,200 --> 00:00:43,360 Speaker 2: an AI bubble, Yet the market continues to climb the 12 00:00:43,360 --> 00:00:46,360 Speaker 2: walls of bubble worries. Joined us now for more ed 13 00:00:46,400 --> 00:00:49,000 Speaker 2: Welcome to the program, sir, Two part question, what's the 14 00:00:49,040 --> 00:00:50,440 Speaker 2: bubble and what is this? 15 00:00:51,920 --> 00:00:55,440 Speaker 3: Well, at this point, I think we're getting into bubble territory. 16 00:00:55,480 --> 00:00:58,680 Speaker 3: For sure. We've got the forward pe of the S 17 00:00:58,760 --> 00:01:03,200 Speaker 3: and P five hundred around twenty three, and the peak 18 00:01:03,520 --> 00:01:06,880 Speaker 3: during the previous tech bubble in the late nineteen nineties 19 00:01:07,720 --> 00:01:10,959 Speaker 3: was twenty five. So we're getting close. But you know, 20 00:01:11,200 --> 00:01:15,920 Speaker 3: the earning story has been phenomenally strong, particularly this year 21 00:01:15,920 --> 00:01:18,280 Speaker 3: in the first and second quarters. Who would have thought 22 00:01:18,640 --> 00:01:22,080 Speaker 3: with all the commotion coming out of Washington, And it 23 00:01:22,080 --> 00:01:24,920 Speaker 3: looks us on the third quarter earning season, which is 24 00:01:24,920 --> 00:01:27,440 Speaker 3: about to start, is going to be very strong as well. 25 00:01:27,480 --> 00:01:30,440 Speaker 3: We're expecting ten percent a year over yere percent change, 26 00:01:30,959 --> 00:01:34,679 Speaker 3: So the earnings are actually there to continue to drive 27 00:01:34,720 --> 00:01:38,160 Speaker 3: this bull market higher. But I wouldn't want to see 28 00:01:38,160 --> 00:01:41,480 Speaker 3: the valuation multiple go any higher than it is right now. 29 00:01:41,560 --> 00:01:43,920 Speaker 2: At that earning story part of the reason, part of 30 00:01:43,959 --> 00:01:45,800 Speaker 2: many reasons why a lot of people are still looking 31 00:01:45,800 --> 00:01:48,680 Speaker 2: for the potential mounts up. Typically, a mounts up is 32 00:01:48,680 --> 00:01:51,240 Speaker 2: a risk people want to own. Is it a risk 33 00:01:51,320 --> 00:01:53,120 Speaker 2: you want to own? And are you willing to keep 34 00:01:53,360 --> 00:01:56,240 Speaker 2: your bets on this market quite concentrated to take advantage 35 00:01:56,280 --> 00:01:56,600 Speaker 2: of it? 36 00:01:57,480 --> 00:01:59,920 Speaker 3: Well, you know, I think it hasn't been all valuation 37 00:02:00,160 --> 00:02:05,000 Speaker 3: And the reality is again has been a earnings lead 38 00:02:05,080 --> 00:02:08,040 Speaker 3: melt up, which is fine. I don't have a problem 39 00:02:08,120 --> 00:02:09,760 Speaker 3: with that, and that's really not a melt up. The 40 00:02:09,800 --> 00:02:13,240 Speaker 3: fundamentals are actually there. And oh, by the way, if 41 00:02:13,280 --> 00:02:17,079 Speaker 3: this whole AI thing turns out to be a lot 42 00:02:17,080 --> 00:02:19,440 Speaker 3: of hype and the companies that are spending all this 43 00:02:19,600 --> 00:02:24,520 Speaker 3: money on AI infrastructure, have to kind of slow it down, 44 00:02:25,040 --> 00:02:27,000 Speaker 3: and it's not exactly the end of the world. I mean, 45 00:02:27,040 --> 00:02:30,760 Speaker 3: these companies are using cash flow to finance this. It's 46 00:02:30,800 --> 00:02:35,520 Speaker 3: not like nineteen ninety nine where telecommunications companies did seller 47 00:02:35,639 --> 00:02:38,320 Speaker 3: financing and there was a tremendous amount of debt because 48 00:02:38,320 --> 00:02:40,440 Speaker 3: to do that they borrowed in the jump bond market. 49 00:02:40,480 --> 00:02:45,799 Speaker 3: So there's a lot of credit in the bubble back then. 50 00:02:46,160 --> 00:02:49,200 Speaker 3: This time around, it's cash flow, and if they have 51 00:02:49,280 --> 00:02:51,480 Speaker 3: to slow it down, their profits are suddenly going to 52 00:02:51,480 --> 00:02:52,200 Speaker 3: look even better. 53 00:02:52,480 --> 00:02:55,240 Speaker 4: Well, and two of those companies, AMD and open Ai. 54 00:02:55,480 --> 00:02:58,480 Speaker 4: The amdco Julie Sue said this yesterday. The more open 55 00:02:58,520 --> 00:03:01,640 Speaker 4: ai deploys, the more revenue get and they get to 56 00:03:01,760 --> 00:03:04,680 Speaker 4: share the upside. Does it concern you that this is 57 00:03:04,720 --> 00:03:05,560 Speaker 4: so circular? 58 00:03:06,280 --> 00:03:10,760 Speaker 3: Yeah, well, you know, I'm thinking of putting a few 59 00:03:10,760 --> 00:03:14,359 Speaker 3: billion dollars into open ai and doing business with them. 60 00:03:15,120 --> 00:03:18,560 Speaker 3: Everybody's playing the game here, So yeah, the circularity of 61 00:03:18,560 --> 00:03:21,600 Speaker 3: it has got the market's really spooked. The market's got 62 00:03:21,600 --> 00:03:26,240 Speaker 3: spooked about AI back in January, remember with deep seek, 63 00:03:26,280 --> 00:03:29,360 Speaker 3: and so this is kind of the latest fear that 64 00:03:29,400 --> 00:03:32,160 Speaker 3: we haven't seen anywhere near the kind of correction we 65 00:03:32,200 --> 00:03:36,520 Speaker 3: saw with Deep Seek. I'm not that concerned about it. 66 00:03:36,960 --> 00:03:39,720 Speaker 3: I think there is a lot of capital spending going on, 67 00:03:39,800 --> 00:03:44,760 Speaker 3: and these companies, you know, unless they're misinformed, which I 68 00:03:44,840 --> 00:03:48,480 Speaker 3: kind of doubt it. These hyperscalers, they know what's going on, 69 00:03:48,560 --> 00:03:51,640 Speaker 3: and they know that the capacity of their system is 70 00:03:52,200 --> 00:03:56,760 Speaker 3: getting stretched, is getting pushed by everybody using AI and 71 00:03:56,800 --> 00:03:58,600 Speaker 3: try to figure out how to use it. 72 00:04:00,200 --> 00:04:02,520 Speaker 4: Bezos said this week as well that investors are just 73 00:04:02,600 --> 00:04:04,720 Speaker 4: having a hard time in the middle of excitement to 74 00:04:04,800 --> 00:04:09,480 Speaker 4: distinguish between the good ideas and the bad ideas. How 75 00:04:09,520 --> 00:04:11,960 Speaker 4: do you distinguish between the good and the bad? 76 00:04:13,200 --> 00:04:16,200 Speaker 3: Well, I'm no better at it than anybody else's At 77 00:04:16,200 --> 00:04:21,680 Speaker 3: this point, I'm going to assume that the hyperscalers, who 78 00:04:21,760 --> 00:04:25,480 Speaker 3: basically are Magnificent seven kind of companies, know what they're doing, 79 00:04:25,680 --> 00:04:29,280 Speaker 3: and they are you know, a lot of the investments 80 00:04:29,279 --> 00:04:31,839 Speaker 3: are data centers. It's not like you know, right now, 81 00:04:31,880 --> 00:04:35,279 Speaker 3: there's a lot of mystery about where the spending is going, 82 00:04:35,960 --> 00:04:41,039 Speaker 3: and the data centers but themselves and that are actually 83 00:04:41,760 --> 00:04:46,360 Speaker 3: the data is available monthly from the construction report that 84 00:04:46,400 --> 00:04:48,440 Speaker 3: the government used to put out when they was open 85 00:04:49,520 --> 00:04:53,360 Speaker 3: But that showed that data centers were running around forty 86 00:04:53,360 --> 00:04:57,200 Speaker 3: billion dollars, and that's at an annual rate. That's times twelve. 87 00:04:57,440 --> 00:05:00,359 Speaker 3: That's not a terrible number. Now, of course, once you 88 00:05:00,400 --> 00:05:04,320 Speaker 3: build the actual structure, you've got to stuff it with 89 00:05:04,760 --> 00:05:08,760 Speaker 3: all these semiconductor chiefs, and that that money is being spent. 90 00:05:09,400 --> 00:05:11,200 Speaker 3: I don't think this is money down the drain. I 91 00:05:11,240 --> 00:05:13,680 Speaker 3: think you know, this is for real. 92 00:05:14,120 --> 00:05:16,400 Speaker 2: And there is an additional dimension that makes this rather 93 00:05:16,480 --> 00:05:18,760 Speaker 2: strange that we have the US government picking winners at 94 00:05:18,760 --> 00:05:22,080 Speaker 2: the same time intow Trilogy Metals, we have open AI 95 00:05:22,560 --> 00:05:24,880 Speaker 2: picking winners too. We saw evidence of that in the 96 00:05:24,920 --> 00:05:27,000 Speaker 2: last twenty four hours. Does that change your approach to 97 00:05:27,040 --> 00:05:28,080 Speaker 2: start picking at. 98 00:05:29,360 --> 00:05:34,080 Speaker 3: Well? You know, my attitude towards Washington is, it's amazing 99 00:05:34,120 --> 00:05:37,960 Speaker 3: how well the economy does despite Washington. It's amazing how 100 00:05:37,960 --> 00:05:41,480 Speaker 3: well the stock market does despite Washington. I don't I 101 00:05:41,520 --> 00:05:45,600 Speaker 3: don't like the state capitalism, as you rightly called it. 102 00:05:45,600 --> 00:05:48,719 Speaker 3: It doesn't it's not really necessary. The free market should 103 00:05:48,760 --> 00:05:51,800 Speaker 3: be able to decide who the winners are and who 104 00:05:51,839 --> 00:05:56,440 Speaker 3: the losers are. So it's more more a noise coming 105 00:05:56,480 --> 00:06:01,120 Speaker 3: out of Washington. The signal we're really seeing the fundamentals 106 00:06:01,160 --> 00:06:05,119 Speaker 3: as the economy continues to be extremely resilient. That's really 107 00:06:05,160 --> 00:06:08,400 Speaker 3: the word for the economy. The past four years, we've 108 00:06:08,400 --> 00:06:12,280 Speaker 3: had the most widely anticipated recession of all times. That 109 00:06:12,360 --> 00:06:14,919 Speaker 3: didn't happen. I didn't think it would happen. And I 110 00:06:14,960 --> 00:06:17,840 Speaker 3: think that's why the evaluation multiples are high, and that's 111 00:06:17,920 --> 00:06:20,120 Speaker 3: why earning this so remarkably strong. 112 00:06:21,279 --> 00:06:24,800 Speaker 2: Stay with us, multilintex Savanta's coming up off to this. 113 00:06:33,960 --> 00:06:34,159 Speaker 5: Here. 114 00:06:34,279 --> 00:06:35,520 Speaker 1: It is not a government shutdown. 115 00:06:35,520 --> 00:06:38,400 Speaker 6: It's a beautiful morning in front of a beautiful waterfront. 116 00:06:38,400 --> 00:06:40,320 Speaker 6: And I'm here with Kip Deevere, who's the co president 117 00:06:40,600 --> 00:06:44,359 Speaker 6: of Areas Management, which oversees almost six hundred billion dollars, 118 00:06:44,720 --> 00:06:47,400 Speaker 6: And thank you so much for being with us here. 119 00:06:47,560 --> 00:06:49,960 Speaker 6: I do want to start where John was talking about 120 00:06:50,080 --> 00:06:52,520 Speaker 6: this idea of the tech build out. How much private 121 00:06:52,520 --> 00:06:55,760 Speaker 6: asset managers have been instrumental in that. I'm just wondering 122 00:06:56,040 --> 00:06:59,760 Speaker 6: how much you are continuing to accelerate your investments into 123 00:07:00,000 --> 00:07:03,360 Speaker 6: digital infrastructure, given that everyone is worried about an AI bubble? 124 00:07:03,400 --> 00:07:05,840 Speaker 6: Are we investing too much? Are we seeing the fruitions 125 00:07:06,160 --> 00:07:06,800 Speaker 6: of our money? 126 00:07:06,839 --> 00:07:09,760 Speaker 7: Sure, so we've sort of transitioned that business to be 127 00:07:09,800 --> 00:07:13,200 Speaker 7: broader in its scope. Historically we've been largely a lender 128 00:07:13,400 --> 00:07:15,760 Speaker 7: to the space, so a senior lender and a mezzanine 129 00:07:15,920 --> 00:07:20,000 Speaker 7: investor as well through our dead infrastructure business. We did 130 00:07:20,000 --> 00:07:23,680 Speaker 7: a recent acquisition that you may be aware of, a 131 00:07:23,720 --> 00:07:27,880 Speaker 7: business focused on industrial logistics investing mostly in Japan, but 132 00:07:27,920 --> 00:07:32,480 Speaker 7: it's global and they have real digital infrastructure development capability, 133 00:07:32,880 --> 00:07:35,280 Speaker 7: so we've started to roll that out. We've done two 134 00:07:35,320 --> 00:07:37,160 Speaker 7: completed projects now in Tokyo. 135 00:07:37,560 --> 00:07:39,600 Speaker 5: We have a third underway. 136 00:07:39,400 --> 00:07:42,160 Speaker 7: Just on the outskirts of London, so we're getting more 137 00:07:42,200 --> 00:07:46,520 Speaker 7: active on the development front. I think that the measured 138 00:07:46,520 --> 00:07:50,000 Speaker 7: approach that we've taken getting into the market doesn't frankly 139 00:07:50,040 --> 00:07:52,520 Speaker 7: put our investors at risk right Our goal is to 140 00:07:53,680 --> 00:07:55,960 Speaker 7: generate great returns for our investors, So we think if 141 00:07:56,000 --> 00:08:00,440 Speaker 7: you stay in tricky markets, hard to find entitle land, 142 00:08:00,840 --> 00:08:03,680 Speaker 7: and then you're building really high quality facilities, which we 143 00:08:03,720 --> 00:08:05,680 Speaker 7: think we are. Because we have an in house team 144 00:08:05,720 --> 00:08:09,280 Speaker 7: that came with the acquisition, it's pretty easy for us 145 00:08:09,360 --> 00:08:13,640 Speaker 7: to find great leases from investment grade tenants like viper scalers. 146 00:08:13,720 --> 00:08:16,120 Speaker 6: Are you passing up opportunities that concern you? Do you 147 00:08:16,120 --> 00:08:18,040 Speaker 6: see things out there that I. 148 00:08:17,960 --> 00:08:21,320 Speaker 7: Think we're selective, and I think if you look historically 149 00:08:22,080 --> 00:08:25,040 Speaker 7: in areas like this over the last twenty or thirty years, 150 00:08:25,040 --> 00:08:28,560 Speaker 7: typically when this much capacity comes online, some of it, 151 00:08:28,600 --> 00:08:29,920 Speaker 7: at the end of the day is going to have 152 00:08:30,000 --> 00:08:30,720 Speaker 7: to be marginal. 153 00:08:30,800 --> 00:08:30,960 Speaker 1: Right. 154 00:08:31,000 --> 00:08:34,480 Speaker 7: These trends tend to lead to overbuilds in certain places. 155 00:08:34,480 --> 00:08:36,960 Speaker 7: So I think us being selective and being measured and 156 00:08:37,040 --> 00:08:39,600 Speaker 7: what we build is super super important. 157 00:08:39,840 --> 00:08:41,880 Speaker 6: One thing that we've seen over the past five years 158 00:08:41,960 --> 00:08:46,120 Speaker 6: is an incredible consolidation of market capitalization of the biggest 159 00:08:46,160 --> 00:08:48,760 Speaker 6: asset managers, the biggest private asset managers. I'm thinking of 160 00:08:48,800 --> 00:08:50,960 Speaker 6: the ones that you won't name, like Apollo and KKR, 161 00:08:51,040 --> 00:08:54,520 Speaker 6: and of course areas defintely named. I'm just wondering whether 162 00:08:54,520 --> 00:08:56,280 Speaker 6: you think this is the sort of path to follow, 163 00:08:56,480 --> 00:08:58,240 Speaker 6: that you think the biggest are going to only get 164 00:08:58,280 --> 00:08:59,760 Speaker 6: bigger and dominate this book. 165 00:09:00,080 --> 00:09:03,760 Speaker 7: We've believed since the beginning Frankly of the company, the 166 00:09:04,760 --> 00:09:08,720 Speaker 7: more scaled platform, both in terms of diversity of asset 167 00:09:08,720 --> 00:09:11,319 Speaker 7: classes but also diversity of geography is it was a 168 00:09:11,400 --> 00:09:14,800 Speaker 7: huge advantage. So we think we get better information to 169 00:09:14,960 --> 00:09:18,720 Speaker 7: participate in more markets. We probably do better due diligence 170 00:09:18,760 --> 00:09:21,880 Speaker 7: because we have better access points. So I think the 171 00:09:22,679 --> 00:09:26,560 Speaker 7: both investing advantages but also the capital raising advantages are 172 00:09:26,600 --> 00:09:28,840 Speaker 7: real and you'll see you see that with the growth 173 00:09:28,880 --> 00:09:30,719 Speaker 7: of Varies, with the growth of Apollo, and growth of 174 00:09:30,760 --> 00:09:34,319 Speaker 7: all the Blackstone KKR, all these folks that have consolidated 175 00:09:34,320 --> 00:09:34,800 Speaker 7: share for you. 176 00:09:35,000 --> 00:09:38,560 Speaker 6: Just actually did see another record year for fundraising, and 177 00:09:38,640 --> 00:09:41,920 Speaker 6: it feels like it's accelerating with respect to how easily 178 00:09:42,000 --> 00:09:45,120 Speaker 6: it is to really get interest from investors. 179 00:09:45,400 --> 00:09:46,960 Speaker 1: What's sort of been the tipping point? Where are you 180 00:09:47,000 --> 00:09:48,720 Speaker 1: seeing that interest really coming from? 181 00:09:48,840 --> 00:09:51,720 Speaker 7: Yeah, I mean, we grew up raising most of the 182 00:09:51,880 --> 00:09:55,600 Speaker 7: capital from the firm from institutions, so it was pensions, 183 00:09:56,200 --> 00:09:59,080 Speaker 7: sovereign wealth funds, et cetera, et cetera. And we've really 184 00:09:59,120 --> 00:10:02,400 Speaker 7: diversified the way that we raise capital today. So I 185 00:10:02,440 --> 00:10:06,720 Speaker 7: would say an increased focus on the wealth channel for sure, 186 00:10:07,040 --> 00:10:10,160 Speaker 7: an increase focus on what our insurance clients are looking 187 00:10:10,200 --> 00:10:13,040 Speaker 7: for because they're very challenged in a tight spread, lower 188 00:10:13,120 --> 00:10:16,520 Speaker 7: rate environment. So it's just become more and more diverse. 189 00:10:16,559 --> 00:10:19,920 Speaker 7: And I think is we're able to educate and offer 190 00:10:20,200 --> 00:10:24,440 Speaker 7: access to investors that didn't have access to certain products before. 191 00:10:24,480 --> 00:10:26,880 Speaker 7: There's just a lot of uptakes from a new set 192 00:10:26,880 --> 00:10:28,839 Speaker 7: of clients that are interested in what we can deliver 193 00:10:28,880 --> 00:10:29,320 Speaker 7: it areas. 194 00:10:29,440 --> 00:10:32,080 Speaker 6: How much is that going to be turbocharged by some 195 00:10:32,280 --> 00:10:34,760 Speaker 6: of what's coming out of Washington, DC to open up 196 00:10:35,000 --> 00:10:38,520 Speaker 6: some of the private as a management field for one KA. 197 00:10:38,440 --> 00:10:42,200 Speaker 7: Accounts coming to I think our view is that it's 198 00:10:42,240 --> 00:10:46,080 Speaker 7: probably a ways off for that to really provide a 199 00:10:46,120 --> 00:10:49,720 Speaker 7: lot of lyft. But we are incredibly supportive obviously of 200 00:10:49,840 --> 00:10:53,640 Speaker 7: bringing our products into channels where there's interest. And I 201 00:10:53,679 --> 00:10:57,400 Speaker 7: do think that those groups of investors today who have 202 00:10:57,520 --> 00:11:01,239 Speaker 7: not had access to alternatives deserve access to alternatives. 203 00:11:02,000 --> 00:11:04,520 Speaker 6: So right now, one thing that is another theme for 204 00:11:04,559 --> 00:11:07,880 Speaker 6: the year has been American exceptionalism and this question of 205 00:11:08,200 --> 00:11:10,840 Speaker 6: is it still the best place to invest? And I wonder, 206 00:11:11,400 --> 00:11:13,880 Speaker 6: as the co president of Areas, whether you see the 207 00:11:13,920 --> 00:11:17,080 Speaker 6: greatest opportunity in the United States or whether you increasingly 208 00:11:17,559 --> 00:11:19,960 Speaker 6: are expanding overseas that you see better investment. 209 00:11:19,679 --> 00:11:23,160 Speaker 7: Opportunity well, And so I think holistically we've been looking 210 00:11:23,200 --> 00:11:25,800 Speaker 7: to expand geographically for a host of different reasons, just 211 00:11:25,840 --> 00:11:28,640 Speaker 7: to give our investors more access points in terms of 212 00:11:28,920 --> 00:11:34,000 Speaker 7: geographic diversification and a class diversification. But to actually answer 213 00:11:34,040 --> 00:11:38,520 Speaker 7: your question, I do think despite some of the instability 214 00:11:38,559 --> 00:11:41,280 Speaker 7: that people may feel here, that most of the investors 215 00:11:41,280 --> 00:11:43,920 Speaker 7: that we see around the world are most excited still 216 00:11:43,960 --> 00:11:45,280 Speaker 7: about investing in America. 217 00:11:45,400 --> 00:11:47,000 Speaker 6: It's one thing that we've seen sort of this idea 218 00:11:47,400 --> 00:11:49,320 Speaker 6: that everything was going to fall apart in the first half, 219 00:11:49,320 --> 00:11:51,640 Speaker 6: and suddenly we're talking about a reacceleration, and suddenly the 220 00:11:51,720 --> 00:11:53,520 Speaker 6: M and A that everyone had been expecting is coming 221 00:11:53,559 --> 00:11:56,520 Speaker 6: back online. We're actually seeing those deals come to place. 222 00:11:56,760 --> 00:11:59,000 Speaker 6: How active has it gotten for you? I mean, how 223 00:11:59,080 --> 00:12:00,000 Speaker 6: much you see this in your book? 224 00:12:00,160 --> 00:12:02,760 Speaker 7: So I mean, look, the first three to four months 225 00:12:02,800 --> 00:12:06,200 Speaker 7: of the year, we're pretty rocky, particularly up through April, 226 00:12:06,240 --> 00:12:10,040 Speaker 7: and that really slowed transaction volume everywhere. But I'd say 227 00:12:10,080 --> 00:12:12,360 Speaker 7: in most of the asset classes that we're in, everything 228 00:12:12,440 --> 00:12:16,120 Speaker 7: is rallied back to where it was pre Liberation Day 229 00:12:16,120 --> 00:12:19,320 Speaker 7: and even through that. So credit spreads are incredibly tight, 230 00:12:19,400 --> 00:12:22,520 Speaker 7: whether you look at high grade corporates or high yield 231 00:12:22,679 --> 00:12:27,160 Speaker 7: or loans. The equity markets are obviously up through highs. 232 00:12:28,440 --> 00:12:30,719 Speaker 7: The thing that we're most excited about is actually kind 233 00:12:30,760 --> 00:12:32,960 Speaker 7: of a shift for folks that see maybe some of 234 00:12:32,960 --> 00:12:37,040 Speaker 7: those markets as expensive into some of our real assets businesses. 235 00:12:37,720 --> 00:12:40,559 Speaker 7: So the recovery in real estate, which we think is 236 00:12:41,120 --> 00:12:44,200 Speaker 7: real is offering a lot of opportunity for us to 237 00:12:44,280 --> 00:12:46,959 Speaker 7: kind of play into the sectors that we like. We 238 00:12:47,400 --> 00:12:49,959 Speaker 7: refer to kind of as the new economy real estate. 239 00:12:50,040 --> 00:12:53,880 Speaker 7: So that's industrial, that's logistics, it's self storage, it's multifamily, 240 00:12:54,160 --> 00:12:56,440 Speaker 7: and we're seeing, we talked about it for a moment earlier, 241 00:12:56,559 --> 00:12:59,800 Speaker 7: a lot of investment in the infrastructure space, whether it's 242 00:13:00,000 --> 00:13:01,200 Speaker 7: additional or toward digital. 243 00:13:01,240 --> 00:13:03,000 Speaker 6: How much is that predicated on the idea of FED 244 00:13:03,080 --> 00:13:05,240 Speaker 6: rate cuts or how much is that completely independent in 245 00:13:05,280 --> 00:13:07,680 Speaker 6: a sort of secular bed on some sort of shift 246 00:13:07,760 --> 00:13:08,520 Speaker 6: in the economy. 247 00:13:09,200 --> 00:13:13,240 Speaker 7: I don't think it's particularly you know, reliant on rate cuts. 248 00:13:13,400 --> 00:13:16,040 Speaker 7: I think rate cuts help equity more than it helps 249 00:13:16,080 --> 00:13:17,319 Speaker 7: credit lending businesses. 250 00:13:18,360 --> 00:13:19,680 Speaker 5: So our own. 251 00:13:19,600 --> 00:13:24,120 Speaker 7: View is the yield curve is probably over predicting cuts. 252 00:13:24,480 --> 00:13:30,360 Speaker 7: I frankly think the economy here is pretty good, and policy, 253 00:13:30,360 --> 00:13:34,040 Speaker 7: while it's a bit restrictive, doesn't seem to be slowing 254 00:13:34,120 --> 00:13:37,679 Speaker 7: too much down here in the States. So transaction activities 255 00:13:37,760 --> 00:13:40,360 Speaker 7: picking up, and valuations, as I mentioned, have recovered in 256 00:13:40,360 --> 00:13:42,839 Speaker 7: almost every asset class. So I do think we'll see 257 00:13:42,880 --> 00:13:46,000 Speaker 7: a slow decrease here in rates to try to provide 258 00:13:46,080 --> 00:13:49,800 Speaker 7: some relief and keep the economic growth that's slowed growing. 259 00:13:51,080 --> 00:13:53,280 Speaker 7: But my own view is I don't think rates ring 260 00:13:53,320 --> 00:13:55,280 Speaker 7: it down as quickly as maybe you're reading about in 261 00:13:55,280 --> 00:13:55,880 Speaker 7: the newspaper. 262 00:13:56,000 --> 00:13:57,440 Speaker 6: So I have a feeling I know how you're going 263 00:13:57,480 --> 00:13:59,440 Speaker 6: to answer, But what concerns you more some sort of 264 00:13:59,440 --> 00:14:01,400 Speaker 6: downturn of the next six months or some sort of 265 00:14:01,440 --> 00:14:02,640 Speaker 6: reacceleration in inflation. 266 00:14:03,800 --> 00:14:05,959 Speaker 7: The ladder the ladder, I mean, I think we see 267 00:14:06,000 --> 00:14:08,920 Speaker 7: the economy as good, although the growth has slowed, and 268 00:14:08,960 --> 00:14:12,240 Speaker 7: that's partially a result of rate increases by design to 269 00:14:12,280 --> 00:14:14,719 Speaker 7: obviously try to deal with inflation. But I think that 270 00:14:14,720 --> 00:14:18,280 Speaker 7: the real scary moment is that if you see a 271 00:14:18,360 --> 00:14:21,480 Speaker 7: reignite of inflation and the FIT has to really dramatically 272 00:14:21,520 --> 00:14:25,080 Speaker 7: rethink their policy, which I think has been one two 273 00:14:25,280 --> 00:14:27,440 Speaker 7: leave rates where they are, slash, reduce them a bit, 274 00:14:27,480 --> 00:14:30,520 Speaker 7: which is obviously going to accommodate more growth and more 275 00:14:30,640 --> 00:14:31,440 Speaker 7: rise and valuation. 276 00:14:32,280 --> 00:14:35,720 Speaker 2: Stay with us multile impex. Savannah's coming up off to this. 277 00:14:44,920 --> 00:14:47,600 Speaker 6: I I'm here with Governor Ned Lamont of the Great 278 00:14:47,600 --> 00:14:52,120 Speaker 6: State of Connecticut in this October is that what Anne 279 00:14:52,120 --> 00:14:56,400 Speaker 6: Marie called it in Connecticut in the Delmar Harbor and Governor, 280 00:14:56,440 --> 00:14:58,040 Speaker 6: thank you so much for being with us. I want 281 00:14:58,080 --> 00:15:00,920 Speaker 6: to start with something that's an increasingly hot topic. We're 282 00:15:00,960 --> 00:15:04,560 Speaker 6: here at a leader of businesses, with the leaders of 283 00:15:04,600 --> 00:15:07,600 Speaker 6: businesses who oversee huge portfolios of money. 284 00:15:07,920 --> 00:15:09,840 Speaker 1: How is governor, do you keep. 285 00:15:09,720 --> 00:15:13,400 Speaker 6: Attracting this type of business to a state while providing 286 00:15:13,720 --> 00:15:17,680 Speaker 6: some of the social services and other expenses that cause 287 00:15:17,720 --> 00:15:18,600 Speaker 6: taxes to go up. 288 00:15:19,440 --> 00:15:21,840 Speaker 8: Well, the folks here at the Greenwich Economic Forum are 289 00:15:21,920 --> 00:15:25,760 Speaker 8: really important to the state, and the fintech sector, the 290 00:15:25,760 --> 00:15:29,360 Speaker 8: financial services sector a big piece of our economy. We're 291 00:15:29,400 --> 00:15:33,200 Speaker 8: part of the New York City financial ecosystem. I think 292 00:15:33,560 --> 00:15:36,360 Speaker 8: what they like here is a little bit of certainty, instability. 293 00:15:36,400 --> 00:15:38,000 Speaker 8: They sort of know where the state's going to go. 294 00:15:38,440 --> 00:15:40,880 Speaker 8: Are taxes a little bit less and it's not a 295 00:15:40,880 --> 00:15:41,600 Speaker 8: bad lifestyle. 296 00:15:42,080 --> 00:15:44,840 Speaker 6: Are you concerned about what would happen if, say there 297 00:15:44,920 --> 00:15:47,720 Speaker 6: is a changeover in the leadership in New York City, 298 00:15:47,800 --> 00:15:52,400 Speaker 6: Let's say mayoral candidate Zoron Mumdanie does win and implement 299 00:15:52,440 --> 00:15:54,560 Speaker 6: some of the policies that he puts out there. Are 300 00:15:54,560 --> 00:15:57,080 Speaker 6: you concerned about the ramifications for a place like Greenwich 301 00:15:57,240 --> 00:16:00,720 Speaker 6: truly relies on the ecosystem of the t state region 302 00:16:01,600 --> 00:16:02,160 Speaker 6: a little bit. 303 00:16:02,840 --> 00:16:05,680 Speaker 8: New York City is the financial capital of the world, 304 00:16:05,760 --> 00:16:08,480 Speaker 8: and we're a big piece of it here as evidence 305 00:16:08,480 --> 00:16:10,840 Speaker 8: of the economic form, and I want to make sure 306 00:16:10,920 --> 00:16:14,120 Speaker 8: that the next mayor understands how important New York City 307 00:16:14,200 --> 00:16:16,840 Speaker 8: is to that system and that's important to Connecticut. 308 00:16:17,240 --> 00:16:20,040 Speaker 6: How confront are you about who the leader is in 309 00:16:20,080 --> 00:16:22,120 Speaker 6: the Democratic Party right now? Do you have a sense 310 00:16:22,520 --> 00:16:25,360 Speaker 6: of where the leadership really is coming from? 311 00:16:25,520 --> 00:16:29,120 Speaker 8: Governors? Okay, I'm a little loaded for bear on that. 312 00:16:29,240 --> 00:16:33,120 Speaker 8: I like governors. Governors have to get stuff done. Voters 313 00:16:33,160 --> 00:16:34,880 Speaker 8: have to balance a budget, they have to do it 314 00:16:34,920 --> 00:16:38,080 Speaker 8: on time. Governors can't shut down a government. Governors are 315 00:16:38,080 --> 00:16:39,800 Speaker 8: sort of the opposite of what you see going on 316 00:16:39,840 --> 00:16:42,680 Speaker 8: to Washington. I think on both sides ale, but in 317 00:16:42,680 --> 00:16:46,040 Speaker 8: our case, the Democrats sees real leadership coming from the governors. 318 00:16:46,120 --> 00:16:47,400 Speaker 5: But don't ask me to ask names. 319 00:16:47,720 --> 00:16:50,320 Speaker 6: Well, but I'm wondering, though, how does a governor take 320 00:16:50,360 --> 00:16:53,520 Speaker 6: that leadership when things are shut down in Washington, DC, 321 00:16:53,760 --> 00:16:56,080 Speaker 6: And it seems like there's a real fissure right now 322 00:16:56,360 --> 00:17:03,280 Speaker 6: in the party and tactics in approach in platform. 323 00:17:01,480 --> 00:17:05,120 Speaker 8: I can tell you the governor's incredibly frustrated. Democrats are 324 00:17:05,119 --> 00:17:09,479 Speaker 8: louder about it than Republicans. You know, we balance our budget, 325 00:17:09,560 --> 00:17:12,000 Speaker 8: we do it based upon some assumptions in terms of 326 00:17:12,000 --> 00:17:14,439 Speaker 8: what our relationship is with the federal government. If they 327 00:17:14,440 --> 00:17:16,800 Speaker 8: pull the rug out from under you every week, seems 328 00:17:16,800 --> 00:17:19,240 Speaker 8: to be happening right now, it makes it very difficult 329 00:17:19,280 --> 00:17:21,840 Speaker 8: for that certainty of stability that the people in this room. 330 00:17:21,800 --> 00:17:24,720 Speaker 6: Like, how much have you seen actual ramifications from the 331 00:17:24,760 --> 00:17:28,680 Speaker 6: government shutdown in the form of funding that isn't coming through. 332 00:17:30,760 --> 00:17:34,600 Speaker 8: It's not my first rodeo with these Trump shutdowns. So 333 00:17:34,640 --> 00:17:37,080 Speaker 8: we went through all of our commissioners. We saw what's 334 00:17:37,080 --> 00:17:39,320 Speaker 8: it most at risk? Where do you have reserves with 335 00:17:39,600 --> 00:17:42,280 Speaker 8: which is women, infant and children probably only had a 336 00:17:42,280 --> 00:17:44,720 Speaker 8: week it's worth of reserve there. So we've figured out 337 00:17:44,720 --> 00:17:48,240 Speaker 8: how we backstop that snap, which is you know, food benefits. 338 00:17:48,320 --> 00:17:49,600 Speaker 5: That's the end of this month. 339 00:17:49,840 --> 00:17:52,800 Speaker 8: So we're watching very carefully where the risk is and 340 00:17:52,880 --> 00:17:54,880 Speaker 8: i can't make up all the shortfall, but I'm trying 341 00:17:54,920 --> 00:17:56,480 Speaker 8: my best to help out the most vulnerable. 342 00:17:56,600 --> 00:17:59,119 Speaker 6: Well, how long do you have reserves to cover things? 343 00:17:59,160 --> 00:18:02,040 Speaker 6: In other words, does funding run out? Should this shutdown 344 00:18:02,040 --> 00:18:03,920 Speaker 6: continue for a long period of time. 345 00:18:05,119 --> 00:18:08,880 Speaker 8: End of this month, you know, snap Benefits is probably 346 00:18:09,040 --> 00:18:12,000 Speaker 8: seventy five million dollars a month. I cannot make up 347 00:18:12,000 --> 00:18:15,520 Speaker 8: that shortfall. So if the federal government walks away, that's tough. 348 00:18:15,800 --> 00:18:18,280 Speaker 8: If we had assurance the federal government is going to backstop, 349 00:18:18,320 --> 00:18:20,200 Speaker 8: if we had to help it out for a couple 350 00:18:20,240 --> 00:18:22,240 Speaker 8: of months and we'll get paid back, that's something else. 351 00:18:22,359 --> 00:18:23,560 Speaker 5: We have none of that assurance. 352 00:18:23,840 --> 00:18:25,280 Speaker 6: I guess I want to go back to the idea 353 00:18:25,320 --> 00:18:27,879 Speaker 6: of leadership right now because we are beginning the midterm 354 00:18:27,920 --> 00:18:30,959 Speaker 6: election cycle, and I wonder, as a Democrat in your 355 00:18:31,000 --> 00:18:34,120 Speaker 6: second term as governor, how much do you feel allegiance 356 00:18:34,119 --> 00:18:37,840 Speaker 6: to the Democratic Party versus something else, a MorphOS that's 357 00:18:37,880 --> 00:18:40,800 Speaker 6: coming that doesn't necessarily have a label. 358 00:18:42,680 --> 00:18:45,680 Speaker 8: Well, as governor, you feel strong allegiance to your state. 359 00:18:45,800 --> 00:18:47,080 Speaker 5: I'm a homer for Connecticut. 360 00:18:47,160 --> 00:18:50,840 Speaker 8: I'm Team Connecticut, and you know, Republican or Democrat, I 361 00:18:50,880 --> 00:18:54,280 Speaker 8: try and get stuff done. Personally speaking, is I look 362 00:18:54,280 --> 00:18:57,400 Speaker 8: at a lot of the Civil War down of Washington, DC, 363 00:18:57,640 --> 00:18:59,760 Speaker 8: and I look at LA and I look at Chicago. 364 00:19:00,720 --> 00:19:03,040 Speaker 8: You know, I do think it's important that the Democratic 365 00:19:03,200 --> 00:19:05,919 Speaker 8: governors stand and stand and speak with one voice, that 366 00:19:06,960 --> 00:19:08,760 Speaker 8: you know what we need from the federal government in 367 00:19:08,840 --> 00:19:10,320 Speaker 8: terms of a reliable partner. 368 00:19:10,840 --> 00:19:13,320 Speaker 6: How much are you concerned about some of the images 369 00:19:13,320 --> 00:19:15,439 Speaker 6: that we're seeing with the National Guard going into places 370 00:19:15,440 --> 00:19:20,040 Speaker 6: like Chicago and San Francisco and Portland and really raising 371 00:19:20,040 --> 00:19:21,720 Speaker 6: a question about whether it's going to be the States 372 00:19:21,800 --> 00:19:22,840 Speaker 6: versus the federal government. 373 00:19:24,680 --> 00:19:26,760 Speaker 8: Right Dally will be speaking again. Remember a year or 374 00:19:26,800 --> 00:19:29,359 Speaker 8: two ago you was talking about civil war. Will you go, oh, Ray, 375 00:19:29,359 --> 00:19:32,320 Speaker 8: come on, it's a little bit unnerving if you see 376 00:19:32,359 --> 00:19:35,480 Speaker 8: those images right now. I talked to General Yvon, the 377 00:19:35,480 --> 00:19:38,200 Speaker 8: head of the Connecticut Guard. We're very careful, I said, 378 00:19:38,200 --> 00:19:41,080 Speaker 8: any inquiries from the federal government, I don't know. We 379 00:19:41,200 --> 00:19:44,560 Speaker 8: just sent our guard to Djibouti, not to Chicago. I 380 00:19:44,560 --> 00:19:45,720 Speaker 8: feel pretty good about. 381 00:19:45,520 --> 00:19:46,919 Speaker 1: That going forward. 382 00:19:47,240 --> 00:19:49,440 Speaker 6: What is your plan to try to keep businesses here 383 00:19:49,520 --> 00:19:52,040 Speaker 6: and attract them to the Northeast given the exodus that 384 00:19:52,119 --> 00:19:55,800 Speaker 6: has gone to Florida to other places have lower taxes. 385 00:19:56,760 --> 00:19:59,720 Speaker 8: We are speeding up our rail system from say Greenwich 386 00:19:59,760 --> 00:20:03,000 Speaker 8: to you know, Grand Central. That'll be ten to fifteen 387 00:20:03,040 --> 00:20:05,639 Speaker 8: minutes faster. Working really hard to make sure, you know, 388 00:20:05,680 --> 00:20:08,119 Speaker 8: you can get the workforce you need. And again, we 389 00:20:08,200 --> 00:20:11,040 Speaker 8: haven't raised taxes in seven years, we've balanced the budget. 390 00:20:11,080 --> 00:20:13,159 Speaker 8: I think that type of stability is pretty helpful. 391 00:20:13,359 --> 00:20:15,200 Speaker 1: Do you think that taxes need to come down? 392 00:20:15,320 --> 00:20:17,600 Speaker 6: Do you think that that's an instrumental part of trying 393 00:20:17,600 --> 00:20:20,760 Speaker 6: to keep attracting businesses and compete with other states. 394 00:20:23,000 --> 00:20:26,399 Speaker 8: Well, I'm a governor, so I can't over promise. Everybody 395 00:20:26,480 --> 00:20:28,320 Speaker 8: running against me is always say they're going to eliminate 396 00:20:28,359 --> 00:20:30,840 Speaker 8: the income tax in the state of Connecticut. I think 397 00:20:30,880 --> 00:20:33,199 Speaker 8: what's more important to the folks I talk to is 398 00:20:33,640 --> 00:20:35,399 Speaker 8: what's this state going to look like one year and 399 00:20:35,480 --> 00:20:37,119 Speaker 8: five years from now? Do I want to be here? 400 00:20:37,160 --> 00:20:39,760 Speaker 8: Because I'm making a five year bet. We haven't raised 401 00:20:39,800 --> 00:20:42,040 Speaker 8: taxes at all. I've cut them for middle class folks. 402 00:20:42,080 --> 00:20:44,240 Speaker 8: I think that's a good balance going forward. 403 00:20:44,320 --> 00:20:46,400 Speaker 1: What is your number one hope for the state? 404 00:20:46,400 --> 00:20:48,440 Speaker 6: What is your number one sort of policy platform that 405 00:20:48,480 --> 00:20:51,639 Speaker 6: you're hoping to get forward over the next one to 406 00:20:51,720 --> 00:20:52,920 Speaker 6: five years. 407 00:20:53,160 --> 00:20:53,920 Speaker 5: I need housing. 408 00:20:54,359 --> 00:20:55,760 Speaker 8: You know, for the first time in a long time, 409 00:20:55,760 --> 00:20:58,040 Speaker 8: a lot of young people are moving out here. Like 410 00:20:58,080 --> 00:21:01,520 Speaker 8: the lifestyle. We're pretty good as a suburban lifestyle. Rebuilding 411 00:21:01,520 --> 00:21:03,840 Speaker 8: our cities. You know, these are our cities. We're fifty 412 00:21:03,840 --> 00:21:06,720 Speaker 8: percent bigger fifty years ago. Now they're growing again where 413 00:21:06,760 --> 00:21:08,919 Speaker 8: young people want to be. As I talk to the 414 00:21:08,960 --> 00:21:11,080 Speaker 8: businesses and say, is this a place where young people, 415 00:21:11,160 --> 00:21:13,760 Speaker 8: young employees want to be, I'm trying to say, yes. 416 00:21:13,920 --> 00:21:17,960 Speaker 6: How much are you participating in the reindustrialization of the 417 00:21:18,080 --> 00:21:20,240 Speaker 6: United States? And that's been a big platform that we've 418 00:21:20,240 --> 00:21:22,520 Speaker 6: seen overall. Is that something that you're trying to attract 419 00:21:22,520 --> 00:21:23,320 Speaker 6: to the state as well. 420 00:21:24,080 --> 00:21:26,000 Speaker 8: Yeah, I'd like to think of us as a silicon 421 00:21:26,080 --> 00:21:29,280 Speaker 8: valley of manufacturing. We do a lot of complicated stuff 422 00:21:29,320 --> 00:21:33,000 Speaker 8: like submarines and jet engines and choppers, and they are 423 00:21:33,040 --> 00:21:35,120 Speaker 8: growing fast. That's the sort of the heart of our 424 00:21:35,119 --> 00:21:37,800 Speaker 8: economy in the northern part of the state. But you 425 00:21:37,840 --> 00:21:41,320 Speaker 8: know that's changing too. It's getting increasingly energy intensive. So 426 00:21:41,320 --> 00:21:43,640 Speaker 8: I'm going to bring down the price of electricity as 427 00:21:43,680 --> 00:21:45,720 Speaker 8: best I can and make sure they have the workforce. 428 00:21:45,920 --> 00:21:48,320 Speaker 8: It's all sort of an AI computerized workforce. 429 00:21:48,400 --> 00:21:54,040 Speaker 2: Now, stay with us multiple impex. Savanna's coming up off 430 00:21:54,040 --> 00:22:05,000 Speaker 2: to this. Let's talk about the government shut down. I'm 431 00:22:04,960 --> 00:22:06,719 Speaker 2: pleased to say that joining us now is the Senator 432 00:22:06,720 --> 00:22:09,719 Speaker 2: from Louisiana, the Republican Chafre of the Senate Health, Education, 433 00:22:09,960 --> 00:22:13,200 Speaker 2: Labor and Pensions Committee, Senator Bill Cassidy joins us now 434 00:22:13,200 --> 00:22:15,920 Speaker 2: for more. Senator, welcome to the program, Sir, welcome back. 435 00:22:15,960 --> 00:22:18,359 Speaker 2: I should say there is a take on Wall Street 436 00:22:18,359 --> 00:22:20,600 Speaker 2: that we've seen this movie before, that we get to 437 00:22:20,600 --> 00:22:23,720 Speaker 2: the inevitable pressure points and the government reopens. You've done 438 00:22:23,720 --> 00:22:25,240 Speaker 2: this for a long time, You've had this seat for 439 00:22:25,320 --> 00:22:27,879 Speaker 2: ten years, Senator. Does it feel different this time? 440 00:22:30,080 --> 00:22:30,520 Speaker 3: It feels a. 441 00:22:30,480 --> 00:22:32,840 Speaker 9: Little bit different because there's a complete breakdown of trust. 442 00:22:33,880 --> 00:22:36,320 Speaker 9: Chuck Schumer, obviously you get ended tomorrow if he wants 443 00:22:36,400 --> 00:22:39,520 Speaker 9: to end it, but he doesn't trust the president that 444 00:22:39,680 --> 00:22:42,600 Speaker 9: said Chuck Schumer could end this tomorrow. I'm hoping that 445 00:22:42,640 --> 00:22:44,760 Speaker 9: he does, and I'm hoping it doesn't take a lot 446 00:22:44,800 --> 00:22:47,760 Speaker 9: of pain from the American people in order to get 447 00:22:47,800 --> 00:22:48,400 Speaker 9: him to do so. 448 00:22:48,960 --> 00:22:51,560 Speaker 4: Is there a breakthrough the fact that in Good Morning, Senator, 449 00:22:51,560 --> 00:22:53,400 Speaker 4: that it does seem like both sides, at least at 450 00:22:53,400 --> 00:22:56,439 Speaker 4: this point want to talk about talking as political put it, 451 00:22:56,440 --> 00:22:58,760 Speaker 4: that the President is coming out and saying maybe there 452 00:22:58,760 --> 00:23:00,960 Speaker 4: could be a compromise comes to healthcare. 453 00:23:02,320 --> 00:23:04,920 Speaker 3: Yeah, absolutely. 454 00:23:05,560 --> 00:23:08,160 Speaker 9: You know, it's better to jawge all than the world wars. 455 00:23:08,200 --> 00:23:10,680 Speaker 9: Winston Churchill once said, so let's go ahead and start 456 00:23:10,720 --> 00:23:15,639 Speaker 9: talking that said, Republicans have suggested a seven week extension 457 00:23:15,720 --> 00:23:19,399 Speaker 9: of the current budget to to allow dialogue to continue, 458 00:23:19,560 --> 00:23:21,879 Speaker 9: and that's commonly done. As Chuck Schumer points out, it 459 00:23:21,920 --> 00:23:25,000 Speaker 9: happened thirteen times under Joe Biden, and so that seven 460 00:23:25,040 --> 00:23:28,439 Speaker 9: weeks kept the government open, allowed us to continue to negotiate. 461 00:23:28,680 --> 00:23:31,119 Speaker 9: So I think there's something else that Schumer's thinking about. 462 00:23:31,359 --> 00:23:33,679 Speaker 9: Not quite sure what it is, but I'd rather be 463 00:23:33,760 --> 00:23:35,640 Speaker 9: talking than kind of sitting in our own corners. 464 00:23:35,880 --> 00:23:37,600 Speaker 4: What is going to happen though at the end of 465 00:23:37,600 --> 00:23:39,600 Speaker 4: the year when we get this premium. 466 00:23:39,280 --> 00:23:43,080 Speaker 9: Hike, Well, first, we don't know what premium mic is 467 00:23:43,119 --> 00:23:47,600 Speaker 9: going to occur, let's just say that. But secondly, we've 468 00:23:47,640 --> 00:23:51,000 Speaker 9: got to address the fact that the Affordable Care Act 469 00:23:51,040 --> 00:23:54,480 Speaker 9: has become the Unaffordable Care Act, in which it takes 470 00:23:54,560 --> 00:23:58,360 Speaker 9: huge subsidies in order to continue to make those policies 471 00:23:58,400 --> 00:23:59,840 Speaker 9: affordable to Americans. 472 00:24:00,240 --> 00:24:01,520 Speaker 3: That's wrong. We've got to. 473 00:24:01,680 --> 00:24:04,040 Speaker 9: Roll that back to a point where it's still affordable 474 00:24:04,040 --> 00:24:07,560 Speaker 9: to Americans, but it doesn't require these huge subsidies. This 475 00:24:07,680 --> 00:24:10,080 Speaker 9: is not sustainable. But by the way, it's not just 476 00:24:10,160 --> 00:24:13,200 Speaker 9: me saying this. The Washington Post had an editorial about 477 00:24:13,240 --> 00:24:16,399 Speaker 9: how the Affordable Care Act is no longer affordable. So 478 00:24:16,440 --> 00:24:18,359 Speaker 9: I think now might be the time. What can we 479 00:24:18,400 --> 00:24:23,000 Speaker 9: do to help the American public lower health care costs 480 00:24:23,119 --> 00:24:25,320 Speaker 9: in a way which is not just for the exchanges 481 00:24:25,440 --> 00:24:28,160 Speaker 9: but for those in the kind of private markets as well. 482 00:24:28,440 --> 00:24:31,119 Speaker 4: Could you get a compromise like that before the end 483 00:24:31,200 --> 00:24:31,640 Speaker 4: of the year. 484 00:24:32,600 --> 00:24:34,879 Speaker 9: I sure hope so, But first you got to reopen 485 00:24:34,880 --> 00:24:35,360 Speaker 9: the government. 486 00:24:36,359 --> 00:24:37,760 Speaker 3: We're actually asking for you. 487 00:24:38,200 --> 00:24:39,560 Speaker 5: How can we do this? How can we do that? 488 00:24:39,720 --> 00:24:41,520 Speaker 9: The government's shut down, so we can't get some of 489 00:24:41,520 --> 00:24:44,919 Speaker 9: the information. The seven week extension of the current budget 490 00:24:45,000 --> 00:24:47,560 Speaker 9: allows that to happen, and so I'd ask Schumer to 491 00:24:47,560 --> 00:24:50,720 Speaker 9: reopen the government in the meantime. I'm certainly committed to 492 00:24:50,760 --> 00:24:53,360 Speaker 9: how we get lower healthcare costs for all Americans. That's 493 00:24:53,400 --> 00:24:55,760 Speaker 9: what I've been doing my whole life, and so let's 494 00:24:55,760 --> 00:24:56,280 Speaker 9: get on it. 495 00:24:56,680 --> 00:24:57,080 Speaker 1: Senator. 496 00:24:57,080 --> 00:24:59,400 Speaker 4: When it comes to moderate Democrats, do you see any 497 00:24:59,440 --> 00:25:02,159 Speaker 4: willingness some of them to join the three that we 498 00:25:02,280 --> 00:25:06,200 Speaker 4: have seen sign up and vote for a clear stopgap 499 00:25:06,200 --> 00:25:07,920 Speaker 4: funding measure, And that's. 500 00:25:07,800 --> 00:25:10,360 Speaker 9: Spoken to any of them personally, you'd like to think 501 00:25:10,359 --> 00:25:13,240 Speaker 9: so one more time, We've just asked for a seven 502 00:25:13,280 --> 00:25:16,320 Speaker 9: week extension of the current budget, which was done thirteen 503 00:25:16,359 --> 00:25:20,200 Speaker 9: times under Joe Biden, and so so I would hope 504 00:25:20,200 --> 00:25:23,679 Speaker 9: they would because this is inflicting pain on the American people. 505 00:25:24,119 --> 00:25:26,760 Speaker 9: But we could be talking with each other without a shutdown. 506 00:25:27,200 --> 00:25:30,199 Speaker 9: I think this is a political response by Schumer to 507 00:25:30,240 --> 00:25:33,120 Speaker 9: pressure from his left wing, but it should be pressure 508 00:25:33,119 --> 00:25:35,720 Speaker 9: from the American people keeping the government open while we 509 00:25:35,760 --> 00:25:37,560 Speaker 9: continue to work the lower healthcare cost. 510 00:25:37,680 --> 00:25:39,600 Speaker 2: A Senator of the White House is still operational, and 511 00:25:39,640 --> 00:25:41,439 Speaker 2: if they're making moves, I wanted to squeeze this in 512 00:25:41,480 --> 00:25:43,880 Speaker 2: because I know you're a busy man. This morning, Trilogy 513 00:25:43,920 --> 00:25:47,080 Speaker 2: Metals in early training this morning is hired by more 514 00:25:47,080 --> 00:25:49,760 Speaker 2: than two hundred percent. The announcement that the US will 515 00:25:49,760 --> 00:25:52,440 Speaker 2: be taking a ten percent stake in the Canadian Minerals 516 00:25:52,480 --> 00:25:56,160 Speaker 2: Explorer leading to a big rally on the stock. Senator, 517 00:25:56,520 --> 00:25:59,560 Speaker 2: can you give me your opinion, your perspective on what 518 00:25:59,600 --> 00:26:03,040 Speaker 2: you think of the party moving towards something that smells 519 00:26:03,080 --> 00:26:05,040 Speaker 2: a little bit like central planning. 520 00:26:06,240 --> 00:26:08,760 Speaker 9: Yeah, I'm a little bit personally concerned about state owned 521 00:26:08,840 --> 00:26:11,879 Speaker 9: enterprises because it's a slippery slope. At first, you're a 522 00:26:11,920 --> 00:26:14,359 Speaker 9: passive partner. It's one thing to have a position in 523 00:26:14,400 --> 00:26:17,000 Speaker 9: the stock market or it's another thing to have a time. 524 00:26:16,920 --> 00:26:18,240 Speaker 1: Exit after TARP. 525 00:26:18,320 --> 00:26:20,520 Speaker 9: There are some positions that the federal government had that 526 00:26:20,600 --> 00:26:23,720 Speaker 9: was a time exit. That's okay, But having a long 527 00:26:23,840 --> 00:26:27,280 Speaker 9: term interest, I think there'll be a future Democratic president 528 00:26:27,400 --> 00:26:29,200 Speaker 9: who will be tempted to go a little bit further. 529 00:26:29,520 --> 00:26:31,600 Speaker 9: We should definitely get a return on our investment if 530 00:26:31,640 --> 00:26:35,399 Speaker 9: we end up bailing somebody out. Absolutely, But on the 531 00:26:35,440 --> 00:26:38,440 Speaker 9: other hand, I'm a little bit nervous about taking positions 532 00:26:38,440 --> 00:26:39,879 Speaker 9: that go beyond a time exit. 533 00:26:40,000 --> 00:26:41,240 Speaker 4: Well, what do you make of the fact that the 534 00:26:41,280 --> 00:26:45,119 Speaker 4: Republican Party, not the Democratic Party, is the party doing 535 00:26:45,119 --> 00:26:47,560 Speaker 4: this and supporting state capitalism. 536 00:26:48,480 --> 00:26:50,879 Speaker 9: Yeah, so I think the president. I can't speak for 537 00:26:50,920 --> 00:26:54,040 Speaker 9: the president, and the Republican Party is a diverse organization. 538 00:26:54,080 --> 00:26:57,040 Speaker 9: I'll say that as well. I'm just speaking for Bilcassidy, 539 00:26:57,320 --> 00:26:59,520 Speaker 9: and I am a conservative, and I am a little 540 00:26:59,520 --> 00:27:03,520 Speaker 9: bit nervous when government ends up owning the means of production. 541 00:27:04,160 --> 00:27:06,879 Speaker 9: When that happens, sometimes the government ends up dictating to 542 00:27:06,920 --> 00:27:09,640 Speaker 9: the means of production what to do, for example, keep 543 00:27:09,680 --> 00:27:13,560 Speaker 9: employment up for political reasons. I'm nervous about that. Maybe 544 00:27:13,560 --> 00:27:15,639 Speaker 9: the President's got a great plan. It's one thing to 545 00:27:15,680 --> 00:27:17,639 Speaker 9: be a passive partner to own stock, we have a 546 00:27:17,680 --> 00:27:20,800 Speaker 9: time dexit, etc. Another to be active. Now, I will 547 00:27:20,800 --> 00:27:23,960 Speaker 9: say the president's specifically saying will not take a position 548 00:27:24,000 --> 00:27:26,320 Speaker 9: on the board. That's my understanding. That's a good thing, 549 00:27:26,680 --> 00:27:29,399 Speaker 9: that's a really good thing. But still I'll put all 550 00:27:29,400 --> 00:27:30,480 Speaker 9: those caveats out there. 551 00:27:30,600 --> 00:27:33,680 Speaker 4: As a senator, does it concern you that the executive 552 00:27:33,720 --> 00:27:36,639 Speaker 4: branch is going one way and not consulting you and 553 00:27:36,680 --> 00:27:37,480 Speaker 4: your colleagues. 554 00:27:38,680 --> 00:27:41,400 Speaker 9: Ultimately, we have to recognize that executive orders have been 555 00:27:41,400 --> 00:27:43,679 Speaker 9: put there, and the presidents can do kind of what 556 00:27:43,720 --> 00:27:47,600 Speaker 9: they want with an executive order. But obviously the problem 557 00:27:47,600 --> 00:27:49,720 Speaker 9: with that is that when a new president comes in, 558 00:27:50,119 --> 00:27:53,280 Speaker 9: she or he so far just he can immediately reverse 559 00:27:53,280 --> 00:27:56,480 Speaker 9: all those So you want legislation that will actually put 560 00:27:56,520 --> 00:27:59,399 Speaker 9: in place for certainty for business and for labor, that 561 00:27:59,560 --> 00:28:04,000 Speaker 9: plan for the economy that goes forward. So everybody understands 562 00:28:04,000 --> 00:28:08,600 Speaker 9: executive orders are powerful, but they're temporary. I would suggest 563 00:28:08,640 --> 00:28:10,800 Speaker 9: that we're going to have long term certainty. We need 564 00:28:10,840 --> 00:28:12,520 Speaker 9: Congress to William. 565 00:28:12,119 --> 00:28:15,000 Speaker 2: Senator before you go, can Tiger's football get back on track? 566 00:28:16,440 --> 00:28:16,800 Speaker 5: Okay? 567 00:28:16,840 --> 00:28:19,160 Speaker 2: Who can Tiger's football get back on track? 568 00:28:19,600 --> 00:28:19,719 Speaker 5: Oh? 569 00:28:19,840 --> 00:28:24,320 Speaker 9: My gosh, I certainly hope, So I certainly hope. So 570 00:28:24,359 --> 00:28:26,480 Speaker 9: we have a good game that's coming up with South Carolina, 571 00:28:27,359 --> 00:28:29,640 Speaker 9: so I'm always hopeful for the Tigers. 572 00:28:29,640 --> 00:28:30,320 Speaker 3: Go Tigers. 573 00:28:31,400 --> 00:28:34,960 Speaker 2: This is the Bloomberg Savandons podcast, bringing you the best 574 00:28:35,000 --> 00:28:38,320 Speaker 2: in markets, economics, anchient politics. You can watch the show 575 00:28:38,360 --> 00:28:41,320 Speaker 2: live on Bloomberg TV weekday mornings from six am to 576 00:28:41,440 --> 00:28:45,200 Speaker 2: nine am Eastern. Subscribe to the podcast on Apple, Spotify 577 00:28:45,360 --> 00:28:47,600 Speaker 2: or anywhere else you listen, and as always, on the 578 00:28:47,600 --> 00:28:50,040 Speaker 2: Bloomberg Terminal and the Bloomberg Business app.