1 00:00:09,080 --> 00:00:12,280 Speaker 1: Welcome to Benchmark, the show about the global economy. I'm 2 00:00:12,320 --> 00:00:15,680 Speaker 1: Scott Landman and economics editor at Bloomberg News in Washington, 3 00:00:15,920 --> 00:00:19,600 Speaker 1: and I'm Daniel Moss, Economics RATA with Bloomberg View in 4 00:00:19,680 --> 00:00:22,680 Speaker 1: New York. Today we're giving you part one of our 5 00:00:22,840 --> 00:00:26,200 Speaker 1: two part Year and Special Dan and I have brought 6 00:00:26,200 --> 00:00:29,280 Speaker 1: in three of our colleagues who cover economies around the world. 7 00:00:29,760 --> 00:00:33,880 Speaker 1: Next week we'll talk about our predictions, but first a 8 00:00:34,000 --> 00:00:38,600 Speaker 1: look back at sea, where we've asked everyone, including ourselves, 9 00:00:38,840 --> 00:00:43,160 Speaker 1: three key questions. One what was the most surprising economic 10 00:00:43,200 --> 00:00:47,000 Speaker 1: development of the year. Two who was a key influential 11 00:00:47,040 --> 00:00:49,720 Speaker 1: person that you may not have heard of? And three 12 00:00:50,120 --> 00:00:54,200 Speaker 1: what was a non economic development that had an economic impact? 13 00:00:54,600 --> 00:00:57,840 Speaker 1: We all came up with some pretty intriguing answers. So 14 00:00:58,000 --> 00:01:08,920 Speaker 1: without further Ado Well Review seventeen Joining us today, we 15 00:01:09,000 --> 00:01:12,959 Speaker 1: have a whole panel of special guests. In addition to 16 00:01:13,440 --> 00:01:16,759 Speaker 1: my regular co host Dan Moss in New York. Joining 17 00:01:16,840 --> 00:01:21,160 Speaker 1: him in the studio there is Vivian Rodriguez, our managing 18 00:01:21,280 --> 00:01:26,039 Speaker 1: editor for Latin America Economy and Government Coverage in New York. Vivian, 19 00:01:26,080 --> 00:01:28,000 Speaker 1: thanks for being with us. Thank you good it's a 20 00:01:28,040 --> 00:01:32,120 Speaker 1: pleasure to be here in Frankfurt. We have Janna Rondo, 21 00:01:32,640 --> 00:01:37,559 Speaker 1: our European economy editor, Janna, how's it going? Very well things? 22 00:01:38,280 --> 00:01:40,720 Speaker 1: And last but not least, joining us all the way 23 00:01:40,760 --> 00:01:46,040 Speaker 1: from Hong Kong is Enda Current, our chief Asia economic correspondent, 24 00:01:46,520 --> 00:01:49,640 Speaker 1: and ah, good evening, Good evening's great to be on. 25 00:01:49,800 --> 00:01:52,560 Speaker 1: Thank you. All right, let's jump into it with our 26 00:01:52,640 --> 00:01:59,600 Speaker 1: first question about what was the most surprising economic development 27 00:02:00,080 --> 00:02:04,520 Speaker 1: of the year. Let's start with Jana. As far as 28 00:02:04,600 --> 00:02:07,320 Speaker 1: the your area is concerned, one really has to say 29 00:02:07,360 --> 00:02:11,880 Speaker 1: the strength of the recovery. It's domestically driven, it's increasingly 30 00:02:11,919 --> 00:02:16,400 Speaker 1: broad based, itself sustained, and it came, i should say, 31 00:02:16,120 --> 00:02:19,440 Speaker 1: as a bit of a surprise to the European Central Bank. 32 00:02:20,160 --> 00:02:23,079 Speaker 1: Since they put out forecasts at the end of last year, 33 00:02:23,120 --> 00:02:26,480 Speaker 1: they have had to revise them up several times. And 34 00:02:26,600 --> 00:02:30,239 Speaker 1: the Eurozone at the moment is having its best economic 35 00:02:30,320 --> 00:02:33,800 Speaker 1: performance in a decade. That is quite something, I would say. 36 00:02:34,160 --> 00:02:37,720 Speaker 1: It is something that is remarkable given how sclerotic the 37 00:02:37,880 --> 00:02:40,960 Speaker 1: recovery has been in recent years, you know, not just there, 38 00:02:40,960 --> 00:02:44,000 Speaker 1: but across the vast economies in general. Let's go next 39 00:02:44,080 --> 00:02:47,520 Speaker 1: to Enda in Hong Kong and what was the most 40 00:02:47,560 --> 00:02:53,080 Speaker 1: surprising economic development of as far as you're concerned, Scott. 41 00:02:53,120 --> 00:02:55,040 Speaker 1: For me, I think one of the big developments has 42 00:02:55,080 --> 00:02:58,600 Speaker 1: been the steep decline in unemployment. Some of the world's 43 00:02:58,600 --> 00:03:02,160 Speaker 1: biggest economies were seen jobless rates fall two decades or 44 00:03:02,240 --> 00:03:06,320 Speaker 1: multi decade loads in big economies like Japan, Canada, UK, US, 45 00:03:06,520 --> 00:03:08,840 Speaker 1: Germany and others. It's brought to o e C the 46 00:03:08,880 --> 00:03:11,640 Speaker 1: average down to below six percent. But the thing is 47 00:03:12,120 --> 00:03:14,440 Speaker 1: it's come with something of a twist because even though 48 00:03:14,560 --> 00:03:17,520 Speaker 1: jobs are being added and labor markets are pretty tight, 49 00:03:17,919 --> 00:03:20,680 Speaker 1: wage growth is still quite subdued, not just in Japan 50 00:03:20,800 --> 00:03:23,000 Speaker 1: but right around the world in these advanced economies, and 51 00:03:23,000 --> 00:03:26,160 Speaker 1: that's one of the big reasons behind the slogae inflation 52 00:03:26,240 --> 00:03:29,200 Speaker 1: that central bankers continue to complain about. The reasons for 53 00:03:29,280 --> 00:03:32,000 Speaker 1: it are multiple. It's blamed on new technology, it's blamed 54 00:03:32,000 --> 00:03:34,840 Speaker 1: on part time workers, and it's blamed on a reluctance 55 00:03:34,880 --> 00:03:38,960 Speaker 1: among companies to invest. However, there is some tentative signs 56 00:03:39,000 --> 00:03:43,040 Speaker 1: that perhaps the Great Capex Revolution might actually be starting. 57 00:03:43,200 --> 00:03:45,640 Speaker 1: We're seeing some big companies like Samsung and tie Out 58 00:03:45,720 --> 00:03:48,760 Speaker 1: and others, certainly in Asia talked about spending more investing 59 00:03:48,760 --> 00:03:51,000 Speaker 1: in their plans and investing in their staff. So perhaps 60 00:03:51,080 --> 00:03:54,400 Speaker 1: next year we might see something of a pickup in wages. Interesting. 61 00:03:54,440 --> 00:03:57,880 Speaker 1: All right, let's come back across the Atlantic or the Pacific, 62 00:03:57,920 --> 00:04:01,400 Speaker 1: I guess to New York in our studio there, Vivian, 63 00:04:01,720 --> 00:04:06,480 Speaker 1: what's your take on this question. Well, definitely one indicator 64 00:04:06,560 --> 00:04:10,280 Speaker 1: here that surprised economists and also government officials. I mean, 65 00:04:10,320 --> 00:04:13,960 Speaker 1: everybody got this wrong in Latin America was the inflation 66 00:04:14,080 --> 00:04:17,480 Speaker 1: level for Brazil in two thousand and seventeen. I mean, 67 00:04:17,600 --> 00:04:19,559 Speaker 1: at the beginning of this year, a lot of people 68 00:04:19,560 --> 00:04:22,479 Speaker 1: were expecting inflation to ads to be now around the 69 00:04:22,560 --> 00:04:26,520 Speaker 1: five percent rate. Actually the targeting Brazil's four point five percent, 70 00:04:26,880 --> 00:04:29,720 Speaker 1: and we are much closer to three. So this really 71 00:04:29,720 --> 00:04:32,880 Speaker 1: also led the central bank to cut interest rates way 72 00:04:32,880 --> 00:04:36,160 Speaker 1: more aggressively than expected. We're talking about extra three hundred 73 00:04:36,160 --> 00:04:39,440 Speaker 1: basis points of interest rate cuts. I mean Brazil interest 74 00:04:39,520 --> 00:04:43,280 Speaker 1: rates actually just touched a record low early in December. 75 00:04:43,560 --> 00:04:46,320 Speaker 1: So definitely quite a I would say a three hundred 76 00:04:46,320 --> 00:04:50,800 Speaker 1: basis points a mismatch or surprising figure for people who 77 00:04:50,800 --> 00:04:54,599 Speaker 1: pay close attention to Latin Americ economics. Definitely, after all 78 00:04:54,640 --> 00:04:58,039 Speaker 1: the political turmoil. They've had their you know, it's pretty 79 00:04:58,080 --> 00:05:01,320 Speaker 1: interesting to note those kinds of economic developments. Yeah, we 80 00:05:01,360 --> 00:05:04,240 Speaker 1: almost lost a president in May, so it's pretty surprising. 81 00:05:04,760 --> 00:05:07,880 Speaker 1: All right, thank you, Vivian Dan. Let's go to you next. 82 00:05:08,440 --> 00:05:14,760 Speaker 1: I'm surprised that Asian officials consistently expressed surprise that Donald 83 00:05:14,760 --> 00:05:18,240 Speaker 1: Trump withdrew the United States from the Trans Pacific Partnership. 84 00:05:19,360 --> 00:05:23,400 Speaker 1: He indicated he would do that during the campaign. Hillary Clinton, 85 00:05:23,440 --> 00:05:27,800 Speaker 1: who was for it, subsequently came out against it, and 86 00:05:27,839 --> 00:05:31,039 Speaker 1: in the Democratic primaries Bernie Sanders was against it as well. 87 00:05:31,400 --> 00:05:34,800 Speaker 1: Why was it such a surprise that Trump did this? Well, 88 00:05:34,960 --> 00:05:37,400 Speaker 1: it really wasn't if you follow the campaign, But I guess, 89 00:05:38,000 --> 00:05:41,080 Speaker 1: you know, years of watching these things to actually see 90 00:05:41,160 --> 00:05:46,080 Speaker 1: something like that happened probably was unthinkable, would you say, Well, 91 00:05:46,279 --> 00:05:48,880 Speaker 1: end it was present for a number of these discussions, 92 00:05:48,880 --> 00:05:51,600 Speaker 1: certainly in the first part of the year, and it 93 00:05:51,720 --> 00:05:53,520 Speaker 1: just kept coming up, and it didn't it They just 94 00:05:53,560 --> 00:05:56,159 Speaker 1: couldn't leave it alone. And I'm like, why he said 95 00:05:56,200 --> 00:05:58,720 Speaker 1: he would do this, That is right, But it's worth 96 00:05:58,839 --> 00:06:01,440 Speaker 1: nothing that they've plowed on with t p P plus 97 00:06:01,480 --> 00:06:04,200 Speaker 1: eleven don they're determined to get and some form of 98 00:06:04,279 --> 00:06:06,640 Speaker 1: deal over the line even without the US anyway, I 99 00:06:06,720 --> 00:06:10,000 Speaker 1: was surprised that they were surprised, so the t p 100 00:06:10,080 --> 00:06:13,880 Speaker 1: P might come back in some form after all. Thanks Dan, 101 00:06:14,320 --> 00:06:17,320 Speaker 1: all Right, I'm gonna go last year and a Vivian 102 00:06:17,320 --> 00:06:20,240 Speaker 1: and have kind of alluded to this already, But for me, 103 00:06:20,800 --> 00:06:25,080 Speaker 1: the most surprising economic development of the year had to 104 00:06:25,200 --> 00:06:29,680 Speaker 1: have been how inflation came down and how wages were 105 00:06:29,720 --> 00:06:33,400 Speaker 1: so weak here in the United States, despite the economy 106 00:06:33,440 --> 00:06:37,800 Speaker 1: being fairly solid, with unemployment dipping well below five percent. 107 00:06:37,920 --> 00:06:40,680 Speaker 1: It seems like it's about to go below four percent. 108 00:06:41,240 --> 00:06:46,000 Speaker 1: Nobody really expected inflation to suddenly fall as it did 109 00:06:46,120 --> 00:06:49,480 Speaker 1: from earlier this year until just pretty recently when it's 110 00:06:49,600 --> 00:06:53,760 Speaker 1: finally begun to stabilize. It's still a good chunk below 111 00:06:53,920 --> 00:06:58,080 Speaker 1: the federal reserves two percent target. Wages have not really 112 00:06:58,520 --> 00:07:02,000 Speaker 1: been pushing up much. They're kind of stuck within this 113 00:07:02,200 --> 00:07:05,360 Speaker 1: range of games two to three percent that they've been 114 00:07:05,920 --> 00:07:09,280 Speaker 1: for the last two years. So you know, that's really 115 00:07:09,480 --> 00:07:13,400 Speaker 1: puzzled a lot of people and forced economists to sort 116 00:07:13,440 --> 00:07:17,200 Speaker 1: of rethink how they're looking at the U S economy. 117 00:07:17,720 --> 00:07:22,160 Speaker 1: Next question to our panel, Name a key influential person 118 00:07:22,600 --> 00:07:26,440 Speaker 1: that few people have ever heard of end Up Tree 119 00:07:26,560 --> 00:07:31,360 Speaker 1: Muliani Indrawati, Finance Minister of Indonesia. She doesn't make global headlines, 120 00:07:31,400 --> 00:07:33,520 Speaker 1: but she's running in one of the world's biggest economies, 121 00:07:33,800 --> 00:07:36,080 Speaker 1: in a vast nation, in a pretty complicated part of 122 00:07:36,120 --> 00:07:38,280 Speaker 1: the world. She made waves at the beginning of this 123 00:07:38,360 --> 00:07:40,640 Speaker 1: year don when she slept a ban on JP Morgan 124 00:07:40,920 --> 00:07:45,080 Speaker 1: after analysts recommended to sell Indonesian stocks. That drew criticism 125 00:07:45,120 --> 00:07:48,160 Speaker 1: that she was pushing censorship. But since then she has 126 00:07:48,160 --> 00:07:51,080 Speaker 1: steered a massive tax eminacy to generated billions for the government. 127 00:07:51,360 --> 00:07:54,400 Speaker 1: She saw the government to get a coveted ratings upgrade, 128 00:07:54,800 --> 00:07:57,320 Speaker 1: and of course she doesn't get the same global airtime 129 00:07:57,360 --> 00:07:59,200 Speaker 1: as her peers. But behind the scenes that I'm f 130 00:07:59,320 --> 00:08:02,960 Speaker 1: meetings into a meetings, she's considered to be determined, dogged 131 00:08:03,040 --> 00:08:06,000 Speaker 1: and one of the more effective financemners out there. Good call, 132 00:08:06,240 --> 00:08:09,840 Speaker 1: not without her missteps, but nevertheless a tremendous advocate for 133 00:08:09,880 --> 00:08:14,000 Speaker 1: her country and for the regent. Yana Mark Ferracci he's 134 00:08:14,040 --> 00:08:18,000 Speaker 1: a friend turned special advisor to French President Emmanuel mccon, 135 00:08:18,640 --> 00:08:23,400 Speaker 1: who was elected by a decisive margin in May, and 136 00:08:23,720 --> 00:08:28,320 Speaker 1: Ferracci is one of the brains behind the country's reworking 137 00:08:28,440 --> 00:08:32,920 Speaker 1: of the unemployment benefits system. Unions will fight tooth and 138 00:08:33,000 --> 00:08:38,640 Speaker 1: nail over it. But Farracci really has two advantages. He 139 00:08:38,800 --> 00:08:41,160 Speaker 1: is the son of a labor and social law expert 140 00:08:41,280 --> 00:08:46,439 Speaker 1: with extensive networks in French social groups, which is obviously 141 00:08:46,480 --> 00:08:49,160 Speaker 1: going to be a big plus. And he has the 142 00:08:49,200 --> 00:08:52,000 Speaker 1: ear of Macon himself. He was the best man in 143 00:08:52,080 --> 00:08:56,600 Speaker 1: his wedding for example. Well, one very interesting character is 144 00:08:56,760 --> 00:09:01,000 Speaker 1: del Fonso Gajardo. He's the Economy Minister of Mexico, always 145 00:09:01,000 --> 00:09:03,560 Speaker 1: a little bit under the shadow of Louis vide Garai, 146 00:09:03,600 --> 00:09:06,840 Speaker 1: which is now the top negotiator on NAFTA, But the 147 00:09:06,880 --> 00:09:11,920 Speaker 1: reality is guar Haardo is truly the man tirelessly working 148 00:09:12,320 --> 00:09:16,920 Speaker 1: to preserve and advocate for mexico interests in these very 149 00:09:17,000 --> 00:09:21,599 Speaker 1: lengthy and I would say, hey, close to dramatic negotiations 150 00:09:21,720 --> 00:09:25,320 Speaker 1: of involving NAFTA now taking place every month. So so 151 00:09:25,440 --> 00:09:29,120 Speaker 1: definitely someone people don't hear about a lot outside of 152 00:09:29,200 --> 00:09:34,079 Speaker 1: Latin America. But quite a bulldog, quite a diplomat, quiet 153 00:09:34,080 --> 00:09:36,640 Speaker 1: and it was extreamly the knowledgeable man who is really 154 00:09:36,679 --> 00:09:40,120 Speaker 1: doing a lot of work from Mexico. Scott, Well, Dan, 155 00:09:40,200 --> 00:09:42,079 Speaker 1: I'm going to offer a little twist here. You didn't 156 00:09:42,080 --> 00:09:45,040 Speaker 1: say that the person had to be living. So my 157 00:09:45,160 --> 00:09:50,440 Speaker 1: pick is William Phillips. He is the economist behind the 158 00:09:50,480 --> 00:09:54,920 Speaker 1: eponymous Phillips curve. And if there's one idea that's had 159 00:09:55,000 --> 00:10:00,720 Speaker 1: a stranglehold on Federal Reserve policymakers in it is Phillips curve, 160 00:10:00,800 --> 00:10:04,400 Speaker 1: the idea that decline in the unemployment rate will eventually 161 00:10:04,679 --> 00:10:07,920 Speaker 1: push up wages and thus inflation. And just like in 162 00:10:07,960 --> 00:10:11,800 Speaker 1: the first question when I talked about how inflation and 163 00:10:11,960 --> 00:10:16,440 Speaker 1: wages being weak was a major surprise in the Fed 164 00:10:16,520 --> 00:10:18,880 Speaker 1: has continued to raise interest rates, and a lot of 165 00:10:18,920 --> 00:10:22,560 Speaker 1: that is because of this very man, William Phillips, and 166 00:10:22,640 --> 00:10:25,800 Speaker 1: the idea of the Phillips curve influential, even though he 167 00:10:25,800 --> 00:10:30,200 Speaker 1: didn't show up exactly. My pick is a gentleman called 168 00:10:30,320 --> 00:10:34,280 Speaker 1: Claudio Borrio. He is a senior official at the Bank 169 00:10:34,360 --> 00:10:38,160 Speaker 1: for International Settlements in Switzerland that's kind of a central 170 00:10:38,200 --> 00:10:42,679 Speaker 1: bank for central banks. He published a very provocative paper 171 00:10:42,960 --> 00:10:46,400 Speaker 1: in September which continues to get quite a lot of buzz. 172 00:10:47,200 --> 00:10:50,440 Speaker 1: One of the things he went into is explaining the 173 00:10:50,480 --> 00:10:54,319 Speaker 1: impact of a global market for labor. We're used to 174 00:10:54,360 --> 00:10:57,560 Speaker 1: talking about globalization the context of stuff being cheaper on 175 00:10:57,600 --> 00:11:01,440 Speaker 1: the shelves at Walmart. But what if the labor pool 176 00:11:02,080 --> 00:11:04,400 Speaker 1: was not a national labor pool at all? So this 177 00:11:04,520 --> 00:11:09,880 Speaker 1: idea of hinging policy on national unemployment rights may really 178 00:11:09,880 --> 00:11:14,520 Speaker 1: be wide of the mark. All right, great answers everybody, 179 00:11:14,679 --> 00:11:18,080 Speaker 1: Very interesting. Let's go on to our third and final 180 00:11:18,320 --> 00:11:21,920 Speaker 1: round for this episode, and we're going a little bit 181 00:11:21,960 --> 00:11:27,679 Speaker 1: outside our normal economic willhouse here. What is one non macroeconomic, 182 00:11:28,000 --> 00:11:32,880 Speaker 1: non political development that had a significant economic impact in 183 00:11:34,600 --> 00:11:37,040 Speaker 1: Vivian Why don't you go first? Well, we kind of 184 00:11:37,080 --> 00:11:39,160 Speaker 1: mentioned it a little bit, and I'm sorry it is 185 00:11:39,200 --> 00:11:41,400 Speaker 1: a bit political, but it was the tape scandal in 186 00:11:41,480 --> 00:11:44,960 Speaker 1: Brazil early in May, I mean overnight, you almost the 187 00:11:45,040 --> 00:11:48,640 Speaker 1: top of the president market sell off. We really thought 188 00:11:48,760 --> 00:11:51,920 Speaker 1: Tamar was going to have to resign after these tapes 189 00:11:51,960 --> 00:11:55,560 Speaker 1: were leaked to the press allegedly, you know, showing that 190 00:11:55,600 --> 00:11:58,640 Speaker 1: he discussed hush money to a former ally and this 191 00:11:58,760 --> 00:12:01,680 Speaker 1: on the backon Impeachman. The trauma in Brazil just just 192 00:12:01,760 --> 00:12:04,880 Speaker 1: really brought back some of the darkest moments, you know, 193 00:12:05,240 --> 00:12:08,360 Speaker 1: literally in questions of hours, So quite a dramatic moment 194 00:12:08,400 --> 00:12:11,600 Speaker 1: for Brazil. In Latin America. All right, a little political, 195 00:12:11,640 --> 00:12:13,600 Speaker 1: I'll have to say, but I'll give you a pass there. 196 00:12:14,000 --> 00:12:17,640 Speaker 1: Let's turn to ender. What do you think is a 197 00:12:17,679 --> 00:12:21,600 Speaker 1: major development that had a significant economic impact, Scott. I 198 00:12:21,600 --> 00:12:23,800 Speaker 1: think it has to be the digital currency boom. It's 199 00:12:23,800 --> 00:12:26,240 Speaker 1: eight years now since bitcoin was born and it has 200 00:12:26,280 --> 00:12:29,080 Speaker 1: since moved into something of a runaway boom that central 201 00:12:29,080 --> 00:12:31,360 Speaker 1: banks are really struggling to get a grip on two 202 00:12:31,360 --> 00:12:34,560 Speaker 1: issues here, how to regulate them and do central banks 203 00:12:34,559 --> 00:12:38,560 Speaker 1: themselves issue some converse sovereign version? Central banks are pretty 204 00:12:38,720 --> 00:12:41,920 Speaker 1: headson't about it. I crackdown and private digital issuers, for example, 205 00:12:42,080 --> 00:12:44,920 Speaker 1: but they also recognize the potentially for the underlying technology 206 00:12:45,000 --> 00:12:47,880 Speaker 1: that I can play a role in finance. One example 207 00:12:47,920 --> 00:12:50,560 Speaker 1: is New Zealand. They're talking about plans for future issues 208 00:12:50,559 --> 00:12:53,199 Speaker 1: and how they can use digital units in their strategies. 209 00:12:53,200 --> 00:12:54,920 Speaker 1: But let me give you a flavor of how divided 210 00:12:54,920 --> 00:12:58,920 Speaker 1: the opinion is. ECB Vice President veto Or Constantio set 211 00:12:58,960 --> 00:13:01,600 Speaker 1: in September that bit coin is not a currency, but 212 00:13:01,720 --> 00:13:04,920 Speaker 1: it is a tulip. Definitely a hot topic we're going 213 00:13:04,960 --> 00:13:08,400 Speaker 1: to be talking about for years to come. Jana, let's 214 00:13:08,400 --> 00:13:11,760 Speaker 1: go to you. I also picked something that borders on 215 00:13:11,760 --> 00:13:15,880 Speaker 1: on technology. I would say innovation in the car industry. 216 00:13:16,320 --> 00:13:18,920 Speaker 1: As we all remember, there was a big diesel scandal 217 00:13:19,200 --> 00:13:25,520 Speaker 1: and it rocked automakers. So they have really increased spending 218 00:13:25,720 --> 00:13:31,079 Speaker 1: on developing more attractive electric cars to kick start sluggish demand, 219 00:13:31,600 --> 00:13:35,040 Speaker 1: to also show that they care about the environment. But 220 00:13:35,280 --> 00:13:39,559 Speaker 1: whether that investment actually will pay off remains very uncertain 221 00:13:39,760 --> 00:13:42,520 Speaker 1: because at the moment, battery prices are very high. They 222 00:13:42,559 --> 00:13:47,160 Speaker 1: squeeze returns compared to equivalent engines that run on gas 223 00:13:47,240 --> 00:13:51,880 Speaker 1: or fuel and um even Tesla when you look at 224 00:13:51,880 --> 00:13:55,520 Speaker 1: the market leader, even Tesla is struggling somewhat because the 225 00:13:55,600 --> 00:13:59,840 Speaker 1: company did unveiled cheaper car. Now it has problems producing 226 00:13:59,840 --> 00:14:03,120 Speaker 1: them in great mass. So it's definitely an interesting thing 227 00:14:03,200 --> 00:14:06,520 Speaker 1: to watch also in the future. All right, Dan, you've 228 00:14:06,520 --> 00:14:09,240 Speaker 1: got a pretty interesting one that I hadn't been familiar 229 00:14:09,280 --> 00:14:12,800 Speaker 1: with before. Go ahead, I'm going for a career company 230 00:14:12,840 --> 00:14:17,000 Speaker 1: in Japan called Yamato Holdings. These are the guys that 231 00:14:17,120 --> 00:14:19,680 Speaker 1: have the little trucks in Tokyo that seemed to be 232 00:14:19,760 --> 00:14:23,360 Speaker 1: everywhere with the logo of the cat and the little 233 00:14:23,440 --> 00:14:26,600 Speaker 1: kitten in its mouth. For the first time in about 234 00:14:26,720 --> 00:14:32,120 Speaker 1: three decades, that's three decades, they raised their base charge 235 00:14:32,640 --> 00:14:35,920 Speaker 1: to their most important customers. It took a long time. 236 00:14:36,080 --> 00:14:40,200 Speaker 1: What's important is that it happened. They also had to 237 00:14:40,240 --> 00:14:46,280 Speaker 1: pay overtime to about forty seven thousand employees. The tightness 238 00:14:46,280 --> 00:14:49,680 Speaker 1: of the Japanese labor market and the declining pool of 239 00:14:49,720 --> 00:14:54,000 Speaker 1: available labor may finally be starting to bite. And if 240 00:14:54,040 --> 00:14:55,960 Speaker 1: we look back and say, right, this is the year 241 00:14:56,040 --> 00:14:59,600 Speaker 1: where this equation turned in Japan, we may well be 242 00:14:59,680 --> 00:15:02,840 Speaker 1: thinking about cats and kittens. We'll see if it's another 243 00:15:03,000 --> 00:15:06,040 Speaker 1: twenty seven years before they raise their prices again. Dan, 244 00:15:06,560 --> 00:15:10,000 Speaker 1: But let's come back to the United States, and I'm 245 00:15:10,040 --> 00:15:13,840 Speaker 1: going to pick an answer that probably won't shock anybody, 246 00:15:13,880 --> 00:15:18,440 Speaker 1: but it's the continuing rise and rise of Amazon dot 247 00:15:18,480 --> 00:15:23,240 Speaker 1: Com and especially looking at how they surprised everybody and 248 00:15:23,440 --> 00:15:27,240 Speaker 1: they bought Whole Foods, the pretty well known grocery chain 249 00:15:27,440 --> 00:15:31,200 Speaker 1: that caters to people looking for organic goods, high end 250 00:15:31,320 --> 00:15:34,600 Speaker 1: kind of stuff, metro markets, whatever you want to call it. 251 00:15:35,000 --> 00:15:39,960 Speaker 1: They are having effects on holding down inflation. Going back 252 00:15:40,000 --> 00:15:44,040 Speaker 1: to previous answers, you know, they keep moving into new markets, 253 00:15:44,200 --> 00:15:49,280 Speaker 1: new products, growing and growing. I personally order more from 254 00:15:49,320 --> 00:15:53,680 Speaker 1: Amazon that I probably ever have before it's just something 255 00:15:53,800 --> 00:15:58,480 Speaker 1: that is continuing to affect the world economy, even though uh, 256 00:15:58,800 --> 00:16:01,640 Speaker 1: you know, it's kind of separate it from a macroeconomic 257 00:16:01,720 --> 00:16:07,160 Speaker 1: development specifically. And with that we conclude our part one 258 00:16:07,360 --> 00:16:11,280 Speaker 1: of the Benchmark Year End Spectacular look back at seventeen. 259 00:16:11,520 --> 00:16:15,760 Speaker 1: I want to thank our panelists for participating, Enda, Janna, 260 00:16:16,040 --> 00:16:21,720 Speaker 1: Vivian thank you so much for being with us. Tune 261 00:16:21,720 --> 00:16:24,400 Speaker 1: in next week for part two of our year end Spectacular, 262 00:16:24,680 --> 00:16:27,800 Speaker 1: where we'll look ahead to In the meantime, you can 263 00:16:27,840 --> 00:16:30,640 Speaker 1: find us on the Bloomberg terminal, Bloomberg dot Com, or 264 00:16:30,640 --> 00:16:33,800 Speaker 1: Bloomberg app, as well as on Apple podcast, pocket Casts 265 00:16:33,840 --> 00:16:36,400 Speaker 1: and Stitcher. While you're there, take a minute to rate 266 00:16:36,400 --> 00:16:38,880 Speaker 1: and review the show so more listeners can find us 267 00:16:39,240 --> 00:16:41,000 Speaker 1: and let us know what you thought of the show. 268 00:16:41,280 --> 00:16:44,320 Speaker 1: You can follow me on Twitter at at Scott Landman 269 00:16:44,800 --> 00:16:49,840 Speaker 1: Dan You're at most Underscore Eco. Enda is that at 270 00:16:49,960 --> 00:16:53,320 Speaker 1: Enda Current, Janna is at at j R A and 271 00:16:53,560 --> 00:16:56,480 Speaker 1: d Ow and Vivian is that at v I V 272 00:16:56,760 --> 00:17:00,760 Speaker 1: Underscore r O D thirteen. This episod out of Benchmark 273 00:17:00,880 --> 00:17:04,120 Speaker 1: was produced by Sarah Patterson and Tofer Forhes. The head 274 00:17:04,119 --> 00:17:08,120 Speaker 1: of Bloomberg Podcasts is Francesca Levy, thanks for listening, See 275 00:17:08,119 --> 00:17:08,680 Speaker 1: you next time.