WEBVTT - The Industries That Are Hiring Right Now: LaSalle CEO 0:00:01.360 --> 0:00:04.120 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, along 0:00:04.120 --> 0:00:06.200 with my co host of Bonnie Quinn. Every business day 0:00:06.240 --> 0:00:10.360 we bring you interviews from ceo, market pros, and Bloomberg experts, 0:00:10.400 --> 0:00:13.600 along with essential market moving news. Find the Bloomberg Markets 0:00:13.600 --> 0:00:17.000 Podcast on Apple podcast or wherever you listen to podcasts, 0:00:17.000 --> 0:00:20.919 and on Bloomberg dot com. It is time to bring 0:00:20.920 --> 0:00:22.960 in somebody now who knows a lot about this morning's 0:00:23.040 --> 0:00:26.000 job's report, because he's the one receiving the calls about 0:00:26.040 --> 0:00:28.600 job openings and trying to fill them as well. Tom 0:00:28.640 --> 0:00:32.080 gimbal Is, CEO of global staffing company lasal And Network. 0:00:32.640 --> 0:00:35.800 You weren't maybe exactly the person answering the phones, Tom, 0:00:35.840 --> 0:00:38.760 but I'm sure you have in the past. So Tom, 0:00:38.800 --> 0:00:41.880 what was the months like? I mean, we're all heartbroken 0:00:41.880 --> 0:00:43.720 for the people that are looking for jobs and can't 0:00:43.720 --> 0:00:47.080 find them. Is there much of that? You know? The 0:00:47.479 --> 0:00:50.160 John markets really strong. I think what we saw today 0:00:50.240 --> 0:00:53.280 is that we added over six hundred thousand jobs, the 0:00:53.360 --> 0:00:57.520 unemployment rate drop. Um, It's it's never going to be 0:00:57.600 --> 0:01:01.360 perfect for everybody, but this is a good report and 0:01:01.400 --> 0:01:04.840 we have to realize that we have the pandemic and 0:01:04.880 --> 0:01:09.880 that's hospitality workers, airlines and these restaurant workers that add 0:01:09.920 --> 0:01:12.640 to the unemployment number being what it is. And if 0:01:12.680 --> 0:01:15.360 we didn't have that and people were dining in and 0:01:15.440 --> 0:01:18.559 traveling and staying at hotels, would be a very different situation. 0:01:19.680 --> 0:01:23.039 It's fascinating, you know. You see the daily coronavirus case 0:01:23.200 --> 0:01:26.119 load just increase every day now and we're one twenty 0:01:26.160 --> 0:01:28.200 six thousand to concerned? Are you for all of the 0:01:28.240 --> 0:01:30.720 people that you know, Cole and all of the client's 0:01:30.840 --> 0:01:33.759 tom that we're going to see lockdowns again and business closings. 0:01:34.840 --> 0:01:36.720 You know, I'm not so sure that we're gonna we're 0:01:36.720 --> 0:01:39.400 gonna see the lockdown. I think what it'll be interesting 0:01:39.400 --> 0:01:42.600 to see now with the election hopefully somewhat over um 0:01:42.840 --> 0:01:46.200 and and when we get a new a new stimulus package, 0:01:46.280 --> 0:01:48.400 of of how that affects it. I think what we'll 0:01:48.440 --> 0:01:52.360 see is south of the Mason Dixon line, you're gonna 0:01:52.360 --> 0:01:56.560 have people being able to eat outside, and that'll be okay. 0:01:56.720 --> 0:01:58.680 I think when we get into the northern cities and 0:01:59.000 --> 0:02:02.600 what happens. I think that even with a Biden presidency, 0:02:02.640 --> 0:02:05.280 that there's people that the majority of the population that 0:02:05.360 --> 0:02:07.600 wants to have the opportunity to go out and go 0:02:07.680 --> 0:02:10.960 eat and have things open. So I'm fairly optimistic that 0:02:11.160 --> 0:02:14.280 that come January, UM, things are gonna open up a 0:02:14.320 --> 0:02:18.120 little bit. Yeah, what were the industries then, Tom, that 0:02:18.160 --> 0:02:21.600 you saw that we're picking up this month, So professional 0:02:21.639 --> 0:02:24.200 services really seem to be to be continued to grow. 0:02:24.560 --> 0:02:26.440 And what we're seeing is a lot of I T 0:02:26.639 --> 0:02:30.960 workers continuing to be a hotspot back office accounting and finance, 0:02:31.400 --> 0:02:35.560 and now with UM hospitals for the past few months 0:02:35.560 --> 0:02:40.040 being able to treat people for non COVID related UM 0:02:40.080 --> 0:02:44.919 surgeries and procedures, we've seen medical health care and back 0:02:44.960 --> 0:02:48.880 office in those settings as well as UH nurse practitioners, 0:02:48.919 --> 0:02:51.400 physician assistants, things like that really starting to pick up. 0:02:51.720 --> 0:02:53.720 We were just speaking with Lawrence Hower of Johns Hopkins 0:02:53.840 --> 0:02:56.880 University said that that portion of the you know, the 0:02:57.000 --> 0:02:59.360 labor work is at least those who have been working 0:02:59.520 --> 0:03:04.000 are absolutely exhausted. Tom. How many people out there you 0:03:04.040 --> 0:03:07.359 know are in need of a genuine break from this. 0:03:08.520 --> 0:03:11.200 I think that's really the interesting point you bring up, Bonny, 0:03:11.400 --> 0:03:13.720 and what what what that is is you've got a 0:03:13.720 --> 0:03:18.120 lot of people that are working standard jobs UM and 0:03:18.360 --> 0:03:21.040 that are going into their into their office, whether it's 0:03:21.040 --> 0:03:27.160 blue collar workers, healthcare professionals, UM, police, fireman, retail workers. 0:03:27.600 --> 0:03:30.360 And then you have white collar what I call white 0:03:30.400 --> 0:03:34.200 collar privilege is people who are at home in their house, 0:03:34.240 --> 0:03:37.720 they don't have to leave, and they're complaining because they're 0:03:37.760 --> 0:03:40.480 on zoom meetings all day. And we've got really a 0:03:40.600 --> 0:03:44.320 lack of empathy towards these people in the healthcare space, 0:03:44.840 --> 0:03:49.160 in the in the crucial worker category that we've got 0:03:49.160 --> 0:03:52.360 to get a lot more empathy for those people and 0:03:52.360 --> 0:03:56.000 and realize what's going on here. But unfortunately, when when 0:03:56.160 --> 0:03:59.200 the your time is called to work and and there 0:03:59.200 --> 0:04:04.360 aren't enough will in those areas, you have to do it. Yeah, 0:04:04.400 --> 0:04:05.840 And I mean especially if you don't know if your 0:04:05.880 --> 0:04:07.760 job is going to exist in a couple of months, right, 0:04:07.800 --> 0:04:10.840 because what's tragic is that there's absolutely no guarantee that 0:04:10.920 --> 0:04:13.160 one S coronavirus is under control that all of these 0:04:13.200 --> 0:04:16.680 people working on the front lines will have jobs because 0:04:16.920 --> 0:04:21.120 hospital systems might be bankrupt by then. Well, I I 0:04:21.160 --> 0:04:24.280 think that's a little bit of a drastic perspective body 0:04:24.320 --> 0:04:27.080 from the standpoint of I don't think the hospital systems 0:04:27.120 --> 0:04:29.440 will be bankrupt. I think that what we've seen with 0:04:29.480 --> 0:04:33.120 the governments, whether it be the airlines or the automotive industry, 0:04:33.360 --> 0:04:36.760 is that if there's big hospital chains and there's cash 0:04:36.760 --> 0:04:40.640 flow problems and revenue problems, that the government can provide 0:04:40.640 --> 0:04:42.760 and provide a stimulus package there. We're not going to 0:04:42.880 --> 0:04:45.799 let that aspect of our health care system go down. 0:04:46.080 --> 0:04:48.560 And I think that the jobs will be there and 0:04:48.600 --> 0:04:51.400 what we've seen. I've got a CEO of a surgical 0:04:51.400 --> 0:04:54.840 practice in the in the Chicago Land area and they 0:04:54.839 --> 0:04:57.640 are actually going to have a better year this year 0:04:57.720 --> 0:05:00.839 than ever before because the bill hold up of people 0:05:01.560 --> 0:05:05.520 over April, May and June just exploded July, August, September 0:05:05.520 --> 0:05:07.840 and October and they were doing so much more from 0:05:07.839 --> 0:05:10.000 people who wanted to get things taken care of. And 0:05:10.040 --> 0:05:11.880 I think we're going to continue to see that elective 0:05:11.920 --> 0:05:14.919 procedures are going to increase. And I think there's really 0:05:14.920 --> 0:05:17.920 a sense in this in society, from working class people 0:05:18.000 --> 0:05:21.200 to blue collar to executive is that people are are 0:05:21.200 --> 0:05:24.040 feeling now that you have to enjoy your life. And 0:05:24.080 --> 0:05:27.440 once COVID's down, I think that you're really going to 0:05:27.520 --> 0:05:30.600 see an increase in travel. You're gonna see an increase 0:05:30.600 --> 0:05:33.880 in tourism. You're gonna see an increase in elective procedures, 0:05:34.279 --> 0:05:36.760 that there's going to be an increase in auto sales. 0:05:36.760 --> 0:05:38.839 What we saw on the third quarter with GMS numbers 0:05:38.839 --> 0:05:42.560 which were really good, You're gonna see that consumer consumer 0:05:43.440 --> 0:05:46.960 purchasing is going to increase a lot in You know, Tom, 0:05:47.839 --> 0:05:50.040 what advice do you have for those out there who 0:05:50.120 --> 0:05:53.440 have been barely putting food on the table for their families, 0:05:53.480 --> 0:05:56.200 who may have had just a wonderful job before now, 0:05:56.240 --> 0:06:00.440 but weren't really con concerned about something like a pandemic. Uh. 0:06:00.480 --> 0:06:02.960 You know, I walk home from work and I see 0:06:03.279 --> 0:06:05.760 country lines, I see food lines, and I know that 0:06:05.800 --> 0:06:08.120 there are people in those lines that have never seen 0:06:08.160 --> 0:06:11.240 the inside of a country before. What do you say 0:06:11.279 --> 0:06:13.039 to those people trying to get up and put on 0:06:13.040 --> 0:06:17.080 a brafface every day? So I'd say, number one, Um, 0:06:17.080 --> 0:06:20.920 it will it will end. Number two. It's it's not 0:06:21.040 --> 0:06:24.400 that all dissimilar from two thousand eight UM in the 0:06:24.440 --> 0:06:28.359 financial crisis, when we thought actually the whole system was 0:06:28.400 --> 0:06:31.800 going to crash. And so there's there is the empathy 0:06:31.839 --> 0:06:34.839 side for all of us to realize that this population 0:06:34.960 --> 0:06:37.080 is different than was two thousand and eight, and we 0:06:37.120 --> 0:06:38.920 have to realize that the next time it could do us. 0:06:38.920 --> 0:06:40.880 So we've got to care for our fellow human beings. 0:06:41.240 --> 0:06:44.880 I think for those that are newly unemployed and living 0:06:44.920 --> 0:06:47.760 hand them out, there are jobs out there, and whether 0:06:47.839 --> 0:06:50.599 it be working in a warehouse for the holiday season, 0:06:51.000 --> 0:06:54.680 whether it be doing call center work, UM, whether it 0:06:54.800 --> 0:06:58.560 be um some sort of hospitality job outside. It may 0:06:58.600 --> 0:07:02.080 even be having to relocate to warmer weather um and 0:07:02.080 --> 0:07:05.719 and pick up seasonal work. But there are opportunities. You 0:07:05.880 --> 0:07:08.680 just can't have an entitlement aspect of this shouldn't be 0:07:08.680 --> 0:07:11.000 happening to me, because woe is me, won't get any 0:07:11.080 --> 0:07:13.640 of us through this. And my business lost a ton 0:07:13.680 --> 0:07:16.480 of business in April and May, but we didn't lay 0:07:16.480 --> 0:07:20.000 off a soul. We actually hired more. We fired people 0:07:20.000 --> 0:07:22.640 who weren't having a good attitude and good work ethic, 0:07:23.000 --> 0:07:25.640 and now our businesses at pre COVID levels. And I 0:07:25.680 --> 0:07:29.040 think if you stick with things and you believe that 0:07:29.040 --> 0:07:32.480 that you're doing everything you can, that there is opportunity 0:07:32.520 --> 0:07:35.680 out there, you just have to find it. Tom Wise 0:07:35.680 --> 0:07:37.600 words from man who's been in this business for a 0:07:37.640 --> 0:07:41.440 long long time and has much made millions of people 0:07:41.840 --> 0:07:44.080 two jobs, and they may not be the jobs that 0:07:44.080 --> 0:07:46.640 they were expecting to get or wanting to get. But 0:07:47.000 --> 0:07:49.240 I'm sure there's been a lot of happy tales coming 0:07:49.240 --> 0:07:51.280 out of LaSalle Network. So thank you very much for 0:07:51.360 --> 0:07:54.160 joining us again this month after the Job's report, which 0:07:54.200 --> 0:07:57.240 again showed that the economy is creating jobs. Maybe not 0:07:57.320 --> 0:08:01.080 as many as we've hoped, but still there was a 0:08:01.080 --> 0:08:03.520 lot of jobs created last month. Tom Gimball, CEO of 0:08:03.520 --> 0:08:10.560 global staffing company lasal Network, Well, I'm delighted to welcome 0:08:10.560 --> 0:08:13.560 you now. The chief equity investment Officer for Eaton Vents, 0:08:13.720 --> 0:08:17.800 Eddie Parkin joins us from Boston. With five seven plus 0:08:17.880 --> 0:08:21.239 billion dollars now sets under management at Eaton Vans, Eddie 0:08:21.280 --> 0:08:24.760 a lot on your shoulders. Would you have predicted what 0:08:25.000 --> 0:08:29.960 has happened so far and what happens next if you did, Vonnie, 0:08:29.960 --> 0:08:31.720 good to be with you. Thank you for your question. Yes, 0:08:32.200 --> 0:08:35.240 you know, coming into coming into the election period, the 0:08:35.280 --> 0:08:39.960 market was beginning to play with the idea that value 0:08:40.000 --> 0:08:44.000 stock small caps international stocks could begin to rotate back 0:08:44.000 --> 0:08:48.600 into favor um. The expectation that the market had was 0:08:48.720 --> 0:08:51.400 that there'd be a blue wave, meaning primarily that not 0:08:51.480 --> 0:08:53.199 only would Biden win the White House, but that you 0:08:53.200 --> 0:08:58.439 would have Democrats take both chambers of Congress. That second piece, 0:08:58.480 --> 0:09:01.800 the Senate, is what may not ultimately come through, and 0:09:01.840 --> 0:09:04.439 that I think is why on Wednesday you had sort 0:09:04.480 --> 0:09:07.360 of a return to how things have been most of 0:09:07.360 --> 0:09:09.640 this year and in prior years, where the mega cap 0:09:09.679 --> 0:09:13.800 tech stocks lead on Wednesday, but with UM, with the 0:09:13.880 --> 0:09:17.240 possibility that the Democrats could still take the Senate, the 0:09:17.240 --> 0:09:21.000 prediction markets, the betting markets have that at about with 0:09:21.040 --> 0:09:23.920 the likelihood that Biden will be the next president. UM, 0:09:23.920 --> 0:09:28.319 there is a sort of expectation of higher interest rates 0:09:28.360 --> 0:09:30.080 that would come from that, and then the jobs number 0:09:30.080 --> 0:09:33.559 today magnifies that. So everything is trading off of rates 0:09:33.640 --> 0:09:36.000 right now. The growth value trade has driven off of 0:09:36.120 --> 0:09:40.240 rates UH and inslation expectations, and so that really the 0:09:40.320 --> 0:09:43.360 tenure yield really is driving the rotation in the equity 0:09:43.360 --> 0:09:46.079 markets this week. Yes, so interesting. I just want to 0:09:46.080 --> 0:09:48.040 point out that if that did happen in the Senate, 0:09:48.040 --> 0:09:50.600 we wouldn't know until January because we'd be counting on 0:09:50.679 --> 0:09:53.640 runoff races. As far as I understand it. Also, I 0:09:53.640 --> 0:09:55.960 do want to point out that we're waiting on the 0:09:56.000 --> 0:09:59.640 Georgia Secretary of State Brad Raethinsburger to brief on the 0:09:59.679 --> 0:10:02.240 election in the work of the election officials right now. 0:10:02.280 --> 0:10:06.040 So this is an ever changing chess board even as 0:10:06.080 --> 0:10:09.560 we move through the hours today. If we do get 0:10:09.559 --> 0:10:12.640 a Biden presidency and the Senate stays read or we 0:10:12.679 --> 0:10:15.000 don't know about the Senate until next year, what will 0:10:15.040 --> 0:10:19.760 you tell your clients about tax and spending and regulatory policies. 0:10:19.840 --> 0:10:22.560 What will your assumptions be. Well, it makes it very 0:10:22.640 --> 0:10:25.800 uncertain right because we've got a little under two months 0:10:25.880 --> 0:10:27.800 until the end of the year, and normally you have 0:10:27.960 --> 0:10:31.160 financial advisors and clients doing a lot of end of 0:10:31.240 --> 0:10:35.600 year tax planning that includes charitable giving, it includes uh 0:10:35.640 --> 0:10:38.520 in a normal year, it would include take harvesting losses, 0:10:38.559 --> 0:10:42.000 taking taking tax losses, which is something that eaton VANCE 0:10:42.040 --> 0:10:44.560 and our affiliate Parametric does a lot of We we 0:10:44.640 --> 0:10:47.839 really focus on after tax returns, and so we were 0:10:47.880 --> 0:10:50.920 thinking this year, if the Democrats take the Senate, then 0:10:50.960 --> 0:10:54.280 it's likely you're going to have increases to capital gains 0:10:54.320 --> 0:10:57.080 tax rates next year, and it actually might make sense 0:10:57.080 --> 0:11:00.719 to reverse the normal protocol and take gains this year, 0:11:00.760 --> 0:11:03.600 pull your gains forward into a lower tax regime. But 0:11:03.760 --> 0:11:05.880 given that it looks like we won't know the makeup 0:11:05.880 --> 0:11:08.160 of the Senate until these two Georgia runoffs, which are 0:11:08.160 --> 0:11:10.679 going to happen. I believe it's January five. People are 0:11:10.679 --> 0:11:14.200 going to have to make end of year tax decisions 0:11:14.280 --> 0:11:17.600 with uncertain information about what the political makeup of the Senators, 0:11:17.640 --> 0:11:19.760 and I think that makes it particularly tricky this year, 0:11:20.200 --> 0:11:22.080 right particularly as I say, if we're seeing a stock 0:11:22.120 --> 0:11:25.840 market that continues to rally on this rotation, you know, 0:11:25.840 --> 0:11:28.600 I know you're rare incident in the value growth rotation. 0:11:28.640 --> 0:11:30.920 And we just heard our cross as that reports Aeroponza 0:11:30.960 --> 0:11:33.600 I talk about how the landscape changed just this week alone, 0:11:33.640 --> 0:11:34.920 from the beginning of the week to the end of 0:11:34.960 --> 0:11:39.160 the week. Where in value would you be looking for gains? 0:11:40.440 --> 0:11:43.559 I think value comes in many forms. So it comes 0:11:43.559 --> 0:11:46.760 in the form of cyclical stocks that could be industrials 0:11:46.840 --> 0:11:49.880 or commodity based stocks like energy, basic materials, all of 0:11:49.920 --> 0:11:52.840 which have lagged. It comes in the form of financial stocks, 0:11:52.880 --> 0:11:57.120 particularly the banks, where higher interest rates that that could 0:11:57.160 --> 0:12:00.560 come from higher fiscal spending and and and bigger fiscal 0:12:00.559 --> 0:12:03.040 deficits that would be good for the banks. Because of 0:12:03.080 --> 0:12:06.319 course they earn a spread between short and long dated 0:12:06.360 --> 0:12:09.199 interest rates um and then it comes in other kind 0:12:09.240 --> 0:12:12.720 of non traditional forms. So small caps stocks tend to 0:12:12.720 --> 0:12:16.160 be more value oriented and do well when values in favor, 0:12:16.440 --> 0:12:21.160 and international stocks, particularly Europe and Japan UH do do better. 0:12:21.240 --> 0:12:25.160 So I the divergence, the spread between what is cheap 0:12:25.160 --> 0:12:27.920 and what is expensive as as wide as it's ever been. 0:12:28.000 --> 0:12:30.440 So if you get the right catalyst, there could be 0:12:30.480 --> 0:12:34.560 a significant rotation into some of those areas I just mentioned. Yeah, 0:12:34.640 --> 0:12:37.720 So in that situation, then would you actually tell clients 0:12:37.720 --> 0:12:40.560 to put money to work or to rotate out of 0:12:40.600 --> 0:12:43.800 more growthy trades and into value right now? I would, 0:12:43.920 --> 0:12:46.160 and I would do it gradually. I wouldn't try and 0:12:46.760 --> 0:12:49.720 call the absolute bottom of the of the value market. 0:12:50.080 --> 0:12:51.760 I would do it over a period of time dollar 0:12:51.840 --> 0:12:55.200 cost average. I would also advise people to look at 0:12:55.200 --> 0:12:58.240 where your target allocations were at the beginning of this year. 0:12:58.240 --> 0:13:00.520 If you had a certain percentage of your money in 0:13:00.679 --> 0:13:03.599 US versus non US, or in large versus small, or 0:13:03.640 --> 0:13:06.960 growth versus value. The performance of the market this year 0:13:07.080 --> 0:13:09.719 has caused a lot of drift in your portfolio, even 0:13:09.760 --> 0:13:13.319 if you've done nothing. If you've just sat tight. Your 0:13:13.360 --> 0:13:16.400 portfolio now looks very different in terms of its nicks 0:13:16.440 --> 0:13:18.360 than it did on January one, So just you know, 0:13:18.840 --> 0:13:20.960 an easy way to do this is just to rebalance 0:13:21.480 --> 0:13:23.000 back to where you were at the beginning of the year, 0:13:23.400 --> 0:13:27.439 or rebalanced whatever targets your financial advisor advises, uh. And 0:13:27.480 --> 0:13:30.000 that is a way of taking a small step in 0:13:30.040 --> 0:13:33.200 the direction that I'm describing. Eddie. How much are you 0:13:33.240 --> 0:13:36.440 following the TikTok of you know, the actual ballots counted, 0:13:36.679 --> 0:13:39.280 and how much do something like this morning's jobs reports, 0:13:39.600 --> 0:13:42.320 which was okay but slightly disappointing. How much does that, 0:13:42.880 --> 0:13:45.800 you know, impact what you're watching. Well, of course we've 0:13:46.080 --> 0:13:47.920 you know, we've we're focused on the long term, but 0:13:48.000 --> 0:13:50.600 the election does have an impact on that, particularly if 0:13:51.840 --> 0:13:55.000 if you get new policies around taxes and regulations and 0:13:55.280 --> 0:13:57.880 and trade. So it is worth following. It's also very 0:13:57.960 --> 0:14:01.680 of course interesting, uh theater um. But it does seem 0:14:01.720 --> 0:14:04.400 likely to my eyes that that that Biden is going 0:14:04.440 --> 0:14:06.200 to pull this out. And the bigger question, of course, 0:14:06.200 --> 0:14:10.760 as we said earlier, is what what happens in the Senate? Yeah, exactly, 0:14:10.800 --> 0:14:12.920 And and as we both said, we may not know 0:14:13.040 --> 0:14:16.280 that on til January. So that'll be a fun couple 0:14:16.280 --> 0:14:18.280 of months. What gets done in the next two months 0:14:18.280 --> 0:14:20.720 if we have that kind of situation where Biden's president 0:14:21.400 --> 0:14:24.600 and there are court cases from the Trump campaign that 0:14:24.640 --> 0:14:27.280 are still live and we don't fully know the make 0:14:27.360 --> 0:14:30.360 of the Senate is a complete lame duck session until 0:14:30.440 --> 0:14:34.000 January and February. Well, it's normally a lame duck session 0:14:34.200 --> 0:14:37.160 anyway under normal circumstances. But of course you're going to 0:14:37.240 --> 0:14:40.080 have a lot of activity in the courts and in 0:14:40.120 --> 0:14:43.320 the media. I can't even begin to imagine how much 0:14:43.960 --> 0:14:45.720 money is going to pour into Georgia to try and 0:14:45.720 --> 0:14:48.400 win those two two seats if the if the Senate 0:14:48.480 --> 0:14:51.760 is on the line there. But I'm a little surprised, frankly, 0:14:51.800 --> 0:14:53.880 that the market is, you know, the market, the SMP 0:14:54.000 --> 0:14:56.400 five hundred month today, which is just six days old, 0:14:56.480 --> 0:14:59.640 is up uh seven and a half percent. And that's um, 0:14:59.680 --> 0:15:03.400 that's striking given all of this uncertainty, right Um, we're 0:15:03.400 --> 0:15:06.640 talking about court battles, we're talking about accusations of fraud. 0:15:06.680 --> 0:15:08.880 We're still not sure who the president will be. We 0:15:08.920 --> 0:15:10.880 don't know who's gonna have the Senate, and yet the 0:15:10.920 --> 0:15:13.080 market is rising in the face of that, and it's 0:15:13.240 --> 0:15:17.120 it's quite striking. What's the most major complaint or query 0:15:17.200 --> 0:15:19.480 that you're getting from your top clients? Now, your most 0:15:19.520 --> 0:15:25.400 wealthy clients complaint. I'm sure they complained sometimes to talk 0:15:25.600 --> 0:15:28.360 not about you guys, but just about the state of things. Yeah. 0:15:28.360 --> 0:15:30.760 I think there's been a lot of uncertainty, really going 0:15:30.800 --> 0:15:34.520 back to the April May time period where things looked 0:15:34.640 --> 0:15:37.360 so bad for the economy and yet the market bottomed 0:15:37.360 --> 0:15:39.200 in late March and began to rise. And I think 0:15:39.240 --> 0:15:42.200 there's just been Uh, it's taken a long time for 0:15:42.240 --> 0:15:44.600 people to get their minds around the idea that stocks 0:15:44.640 --> 0:15:47.080 can go up even when the economy is in tough shape. 0:15:47.080 --> 0:15:48.640 And I think it's a function of a couple of things. 0:15:48.680 --> 0:15:52.040 One is the fact that the market stock markets always 0:15:52.120 --> 0:15:54.720 looking forward. So if we can treaty is a one 0:15:54.760 --> 0:15:58.800 time right off on the earnings and economic front, then 0:15:58.840 --> 0:16:01.240 we can go back to the earnings power that companies 0:16:01.240 --> 0:16:03.720 have in the longer term. Obviously, if you're a small 0:16:03.760 --> 0:16:06.440 business who's really struggling that that doesn't sound very good. 0:16:06.480 --> 0:16:09.360 But for public equities, for large companies, they are able 0:16:09.400 --> 0:16:12.480 to weather through this, and there's hope that you know, 0:16:12.520 --> 0:16:14.320 once a vaccine comes, will be able to go back 0:16:14.320 --> 0:16:16.400 to normal and back to the earnings power these these 0:16:16.400 --> 0:16:18.440 companies have. And so that's part of it, and the 0:16:18.440 --> 0:16:21.200 other part it is just the aggressive said policy the 0:16:21.240 --> 0:16:24.480 FED basically saying we're here to backstop risk assets and uh. 0:16:24.480 --> 0:16:27.200 And that's that's another reason why stocks have been going 0:16:27.280 --> 0:16:31.560 up despite the economic news being relatively poor. Okay, Eddie, 0:16:31.640 --> 0:16:33.720 thank you, but let you back to your screens. I 0:16:33.720 --> 0:16:35.440 would imagine that will all be glued to them all 0:16:35.520 --> 0:16:38.200 day long. Eddie park In, his chief equity investment officer 0:16:38.680 --> 0:16:41.160 at Eton Vans in Boston, which is well more than 0:16:41.200 --> 0:16:45.480 five hundred billion dollars in assets under management. Bloomberg Opinion 0:16:45.760 --> 0:16:50.720 informed perspectives and expert data driven commentary on breaking news. 0:16:52.080 --> 0:16:53.680 I want to get to the Bloomberg giving in in 0:16:53.840 --> 0:16:56.800 just a moment, but first to update you on Larry 0:16:56.880 --> 0:17:00.240 Cudloe's comments just a few moments ago at the White House, 0:17:00.600 --> 0:17:03.400 President Trump's topic economic advisor said he expects a peaceful 0:17:03.480 --> 0:17:08.800 transfer of power if Biden wins the presidency. He was 0:17:08.840 --> 0:17:10.840 gaggling again outside the White House, and in this case 0:17:10.880 --> 0:17:13.800 he was responding to a question from CNBC, said, we 0:17:13.840 --> 0:17:16.240 abide by the rule of law, and so will this president. 0:17:16.520 --> 0:17:18.439 So he sounds fairly certain that there will be a 0:17:18.440 --> 0:17:22.399 peaceful transfer of power. He also mentioned that President Trump, 0:17:22.960 --> 0:17:25.920 Mitch McConnell, and Steve Lucian, the Treasury Secretary, still want 0:17:25.960 --> 0:17:28.119 a stimulus deal. We knew that McConnell had come out 0:17:28.160 --> 0:17:30.159 and said he wanted a deal now by the end 0:17:30.200 --> 0:17:32.600 of the year. But also, of course we're not quite 0:17:32.600 --> 0:17:36.040 sure about Nancy Pelosi or what her status is right now. 0:17:36.840 --> 0:17:40.320 So let's get to how everybody outside the United States 0:17:40.400 --> 0:17:42.360 is viewing this, and for that, let's bring in Bloomberg 0:17:42.400 --> 0:17:45.439 opinion columnist Leonel Loan, who covers the European Union in 0:17:45.480 --> 0:17:50.119 France typically but today is very very definitely covering the 0:17:50.240 --> 0:17:53.480 US election. He says, there are a numerous uncertainty surrounding 0:17:53.520 --> 0:17:55.520 the U s presidential election, but the good news for 0:17:55.560 --> 0:17:58.560 the European Union is that it's unofficial preferred candidate looks 0:17:58.600 --> 0:18:01.720 close to taking the White House. So Lionel Joe Biden, 0:18:01.840 --> 0:18:07.399 why is he the preferred candidate? Well, I think because 0:18:07.400 --> 0:18:10.680 he isn't Donald Trump, and because everything he has said 0:18:11.040 --> 0:18:15.679 points to a more productive and a more friendly tone 0:18:15.840 --> 0:18:18.360 over the over the next four years. If he becomes president, 0:18:18.400 --> 0:18:21.280 he said that he would rejoin the Climate Accords. He 0:18:21.359 --> 0:18:25.040 said that he would rejoin the the Iran Deal if 0:18:25.080 --> 0:18:29.040 if Iran complied, and that the w h O would 0:18:29.080 --> 0:18:31.320 also see more support as well. So I think in 0:18:31.440 --> 0:18:34.320 terms of the good news is that you are likely 0:18:34.400 --> 0:18:37.240 to get a much more stable and predictable and friendly 0:18:37.800 --> 0:18:41.399 transplantic relationship. However, I do think that there are going 0:18:41.440 --> 0:18:45.400 to be some uncertainties, and the Europeans in general will 0:18:45.520 --> 0:18:49.080 view this not as a kind of total return to 0:18:49.320 --> 0:18:52.679 life before Trump, right, because the Arapan Union in the 0:18:53.200 --> 0:18:55.440 in the last four years has had its own internal 0:18:55.440 --> 0:18:58.159 difficulties as well, and very many of them. So if 0:18:58.280 --> 0:19:00.959 it is a Biden presidency, and again this is hypothetical, 0:19:01.040 --> 0:19:02.840 we don't know yet that that's going to be the case. 0:19:03.160 --> 0:19:06.600 But if it were to be, what would Joe Biden's 0:19:06.640 --> 0:19:10.440 approach be regarding Europe versus Britain. How would he stay 0:19:10.520 --> 0:19:15.560 out of that fight? Well, I think we know enough 0:19:15.600 --> 0:19:19.600 to know that, firstly, Brexit is not some major strategic 0:19:19.640 --> 0:19:22.000 priority for the US, and we know that the Democrats 0:19:22.640 --> 0:19:25.240 in the House still very much want a deal of 0:19:25.320 --> 0:19:28.359 respect of Good Friday Agreement. We also know that Joe 0:19:28.359 --> 0:19:34.600 Biden sees Germany as the big unfair target of Trump's anger, 0:19:34.720 --> 0:19:36.560 and so I think there would definitely be a hand 0:19:36.560 --> 0:19:39.679 extended to Germany and the EUSE. So it's that that 0:19:39.800 --> 0:19:42.399 isn't so much the uncertainty. However, I think that France 0:19:42.400 --> 0:19:45.520 and Germany know that over the past twenty years, not 0:19:45.600 --> 0:19:48.359 just the past four years, there are fundamental differences between 0:19:48.440 --> 0:19:50.879 Europe and the US. The U S has more about 0:19:51.119 --> 0:19:54.359 China now containing China, cares more about pivoting to Asia, 0:19:54.600 --> 0:19:57.880 it has less. It has also more about domestic policy. 0:19:58.680 --> 0:20:02.600 Defending Europe and and paying for European security is less 0:20:02.720 --> 0:20:05.760 high a priority. And if you throw in things like 0:20:06.040 --> 0:20:09.600 tech policy, the role of the dollar versus the role 0:20:09.640 --> 0:20:14.119 of the euro, more kind of geoeconomic world, then I 0:20:14.160 --> 0:20:18.320 think these will tell you that that the Europeans are 0:20:18.320 --> 0:20:20.440 not going to just sit around for the next four 0:20:20.520 --> 0:20:23.240 years and and assume that everything will just revert to 0:20:23.240 --> 0:20:27.680 how it was before Trump. So leonel beyond sort of 0:20:27.800 --> 0:20:33.040 you know, better relations with multilateral and trans national organizations 0:20:34.200 --> 0:20:37.200 and also treaties of course, like the Paris Treaty Beyond that, 0:20:37.480 --> 0:20:42.760 what could the European Union use the United States for? So? 0:20:42.840 --> 0:20:46.159 I think the big silver lining here is that China 0:20:47.200 --> 0:20:50.800 is the priority that is shared by both Democrats and 0:20:50.920 --> 0:20:54.919 Republicans and even the EU. So I think that the 0:20:54.960 --> 0:20:58.119 EU as a trading block, that's where its power lies. 0:20:58.160 --> 0:21:01.560 And I think the EU should move towards the US 0:21:01.600 --> 0:21:06.199 and Biden say, look, we can help really raise the 0:21:06.240 --> 0:21:10.560 bar on for example, subsidies and unfair trade practices from China, 0:21:10.920 --> 0:21:13.920 but in return, they should encourage the US to let 0:21:14.440 --> 0:21:17.240 you build its own institutions, take on more of its 0:21:17.280 --> 0:21:24.520 defense responsibilities, and also become more economically assertive again against 0:21:24.560 --> 0:21:28.960 Silicon Valley companies and defending the role of the EURO globally. 0:21:29.000 --> 0:21:31.359