WEBVTT - Stocks Jump on Consumer Confidence, Trade Talks 

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio news. You're listening to the

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<v Speaker 2>This is Bloomberg Intelligence Radio. All right, let's get to

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<v Speaker 2>that consumer confidence on number jumping the most in four

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<v Speaker 2>years on outlook for better economy as well as trade truth.

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<v Speaker 2>Joining us now to break down those numbers even more

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<v Speaker 2>is Stephanie Gusha, a senior economist at the conference Sport.

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<v Speaker 2>Is it truly alle relief on trade? At this point?

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<v Speaker 3>It's largely We split our sample around May twelve to

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<v Speaker 3>see whether there was a stronger improvement in the second

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<v Speaker 3>half of the month, and there was, sorry, truly after

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<v Speaker 3>the trade did with CHI now that we saw strongest

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<v Speaker 3>improvement in our indicators, especially the expectation component.

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<v Speaker 4>So in your index here, what's the makeup of kind

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<v Speaker 4>of consumer confidence? Is it how much is kind of jobs?

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<v Speaker 4>Do I have a job? Or is it more about inflation?

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<v Speaker 4>What am I going to have to pay for stuff?

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<v Speaker 4>Just general economic concerned? How is that waited?

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<v Speaker 3>So it's a lot about jobs, both in the current

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<v Speaker 3>situation and in the expectations components. And one thing to

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<v Speaker 3>notice that the current job situation is the only component

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<v Speaker 3>of the index that didn't improve this month, So there

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<v Speaker 3>are still some concern about, you know, where the label

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<v Speaker 3>market is going right now, and we don't explicitly have

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<v Speaker 3>an inflation component in the index. However, we ask consumers

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<v Speaker 3>about how they feel about their future income, which could

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<v Speaker 3>be capturing, you know, whether they are going to get

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<v Speaker 3>enough money to pay for what they need, and that

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<v Speaker 3>that's one of the components of the expectation component. But

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<v Speaker 3>it's not really about inflation overall. It's more about the

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<v Speaker 3>label market.

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<v Speaker 2>Okay, Stephanie, thank you very much. Really interesting, and also

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<v Speaker 2>we have not recouped though the big decline that we've seen.

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<v Speaker 2>It's not a full v yet that recovery for consumer

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<v Speaker 2>confidence a right, Stephanie Kusha joining us there from the

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<v Speaker 2>conference board.

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<v Speaker 1>You're listening to the Bloomberg Intelligence Podcast. Catch us live

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<v Speaker 2>Alex still here alongside pauls we need. This is Bloomberg

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<v Speaker 2>Intelligence Radio. We're broadcasting to live from our interactive broker

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<v Speaker 2>studio right here in mid tom Manhattan. Also check us

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<v Speaker 2>out on YouTube, Bloomberg dot com, as well as originals

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<v Speaker 2>on realku and your smart tv anywhere where you get

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<v Speaker 2>your news. So, the news over the weekend as well

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<v Speaker 2>as this morning, is President Trump rolling back it's tariff

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<v Speaker 2>deadline and tariff amount on the European Union, saying that

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<v Speaker 2>it's speeding up, it's treading negotiations and he thinks this

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<v Speaker 2>is a positive event. Now that deadline's extended to July ninth,

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<v Speaker 2>after a call this weekend with the European Commission President

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<v Speaker 2>Ursula Vonderlyon. Let's get more on this with Roz Matheson,

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<v Speaker 2>Bloomberg News director for Europe, the Middle East and Africa.

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<v Speaker 2>Ros What do we know that the EU Ursula Vonderlyon

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<v Speaker 2>offered President Trump to make him feel so good about it?

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<v Speaker 5>Well, part of it might have just been that that

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<v Speaker 5>phone call seemed to have gone smoothly, but also what

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<v Speaker 5>we saw from the markets when he threatened the fifty

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<v Speaker 5>percent tariff, maybe al so perhaps entered into Donald Trump's thinking.

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<v Speaker 5>But as you say, we do know after that call

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<v Speaker 5>that he walked back that threat. So we've got a

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<v Speaker 5>bit more breathing space on the EU side to get

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<v Speaker 5>talks going. And now the question is how can talks

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<v Speaker 5>occur in a in a proper way, and what is

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<v Speaker 5>the EU going to do potentially to crack open the

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<v Speaker 5>door with US without giving away its own red lines,

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<v Speaker 5>because the E does have a whole lot of stuff

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<v Speaker 5>that is just willing, not willing to give ground on.

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<v Speaker 5>We do know they seem to be wanting to now

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<v Speaker 5>split up the talks a little bit, So separate all

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<v Speaker 5>these big things out into smaller pieces and see if

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<v Speaker 5>they can make any traction on individual things. So more

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<v Speaker 5>on the political side, there's hot button issues around auto's pharmer,

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<v Speaker 5>civil aircraft chips and so on, and then more technical

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<v Speaker 5>level conversation around things like non tariff barriers. So split

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<v Speaker 5>everything up into smaller compartments again and see if they

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<v Speaker 5>can edge anything forward. But in doing so you do

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<v Speaker 5>also risk fragmentation. And the question is in conversations going forward,

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<v Speaker 5>do you end up with partial bits of a framework

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<v Speaker 5>deal and nothing really complete? And what then happens if

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<v Speaker 5>we get very very close to this July deadline and

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<v Speaker 5>things are still deadlocked.

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<v Speaker 4>So ross how united is the European Union in these negotiations?

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<v Speaker 4>Here in these discussions do you think?

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<v Speaker 5>Well, that's always the classic question, isn't it with the

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<v Speaker 5>EU unity in the minute? Because it is a bunch

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<v Speaker 5>of very different economies and very different politicians leading each country.

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<v Speaker 5>In this case, there does seem to be a decent

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<v Speaker 5>amount of unity. You're not seeing some of the bigger

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<v Speaker 5>economies speak out necessarily against each other. I mean, that's

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<v Speaker 5>been the weakness and the strength of the EU for

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<v Speaker 5>many many decades, is trying to peel individual leaders away

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<v Speaker 5>from each other. We've seen that for example on how

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<v Speaker 5>to handle the war in Ukraine. But on this they

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<v Speaker 5>do seem to be unified. So even some of the

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<v Speaker 5>economies that have tended to side with Donald Trump are

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<v Speaker 5>falling in line. The question again is like, is there

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<v Speaker 5>any wiggle room between the EU and the US to

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<v Speaker 5>get to some kind of framework agreement or are we

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<v Speaker 5>going to see this all happen in July and then

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<v Speaker 5>EU retaliation, which could be quite significant, kicks in automatically

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<v Speaker 5>at that point, and so it's really downe to the

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<v Speaker 5>negotiators at this point to see if they can find

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<v Speaker 5>common ground and the role potential of Ursula Vonderline in

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<v Speaker 5>that her chief trade negotiator been talking a lot with

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<v Speaker 5>US officials like Howard Lutnick for example, and jameson Gria

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<v Speaker 5>of late. Is that personal relationship going to get any

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<v Speaker 5>kind of traction and are they able to represent and

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<v Speaker 5>hear you collectively then as a whole.

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<v Speaker 2>But that's sort of what confuses me because is it

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<v Speaker 2>concrete stuff or is it just having a good phone

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<v Speaker 2>call with President Trump? And like, what can Europe actually

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<v Speaker 2>offer thus concrete that's not going to make all the

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<v Speaker 2>other twenty six members mad?

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<v Speaker 4>Well, that's the thing.

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<v Speaker 5>It does seem to be quite personal, right. I was

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<v Speaker 5>thinking about recently, even to Donald Trump's first term in

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<v Speaker 5>office and some of the trade tensions with China for

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<v Speaker 5>example that came up at the G twenty's and so on,

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<v Speaker 5>and how it always took like a meal with sieging

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<v Speaker 5>Pings sitting down at a table together, that leader level

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<v Speaker 5>conversation to break the eyes to get a thaw, even

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<v Speaker 5>if it's temporary in trade tensions. We saw that with

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<v Speaker 5>China over and over again. And then of course it

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<v Speaker 5>all fell apart some months later and we were back

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<v Speaker 5>to a trade war. So it does seem to be

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<v Speaker 5>quite personality dependent, and it's about again the EU does

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<v Speaker 5>have its red lines. It's not going to roll over

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<v Speaker 5>in order to get a deal. Equally, it's about letting

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<v Speaker 5>Donald Trump feel like he's got a win on some

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<v Speaker 5>parts of it potentially, So it's a very careful exercise.

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<v Speaker 5>In this case, the EU is saying, you know, these

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<v Speaker 5>negotiators are representing all of us. You can't try and

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<v Speaker 5>come to each leader individually and peel us off. The

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<v Speaker 5>representatives for us are the people who are talking to you.

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<v Speaker 5>So this is the EU chief negotiator, for example Shaskovich.

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<v Speaker 5>It's also Oshel of Vondeline and those in the Commission.

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<v Speaker 5>So they are holding the line on that versus coming individually.

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<v Speaker 5>But again, do they have that personal rapport that's going

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<v Speaker 5>to get this over the line.

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<v Speaker 4>Ross, thanks so much for joining us. Really appreciate getting

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<v Speaker 4>your reporting. Ross Math as a news director for you're

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<v Speaker 4>the Middle East and Africa for Bloomberg News. Joining us

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<v Speaker 4>via zoom from our London headquarters at Queen Victoria Street.

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<v Speaker 1>You're listening to the Bloomberg Intelligence podcast. Catch US live

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<v Speaker 1>weekdays at ten am Eastern on Applecarckley and Android Dot

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<v Speaker 1>with the Bloomberg Business app. Listen on demand wherever you

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<v Speaker 1>get your podcasts, or watch us live on YouTube.

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<v Speaker 2>All Right, One of the great stories over the weekend,

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<v Speaker 2>I mean great as in you can really sink your

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<v Speaker 2>teeth into the ongoing drama of this is President Trump's Administration's.

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<v Speaker 6>Attack on Harvard.

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<v Speaker 2>The latest is the administration's moving to council all remaining

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<v Speaker 2>federal contracts with Harvard University, worth an estimated one hundred

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<v Speaker 2>million dollars. The latest in this battle with this university.

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<v Speaker 2>Janet Lauren is Bloomberg Higher Education finance reporter and joins us. Now,

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<v Speaker 2>what's the end goal?

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<v Speaker 6>Do you think is Harvard.

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<v Speaker 2>Kind of understands this from the Trump administration.

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<v Speaker 6>That's a really good question, because it seems like several

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<v Speaker 6>times a week we're seeing a new financial tool being

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<v Speaker 6>hammered down on Harvard. The Trump administration has a lot

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<v Speaker 6>of issues with Harvard, and many of these elite universities,

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<v Speaker 6>Harvard and Columbia have been single dart. Harvard is the

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<v Speaker 6>richest and the oldest university in America, so it has

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<v Speaker 6>a particular status. But the administration is outlined several things

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<v Speaker 6>in addition to them not doing enough about anti Semitism.

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<v Speaker 6>They say they're discriminatory in hiring and admissions, and what

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<v Speaker 6>does that mean. They you know, it's related to diversity

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<v Speaker 6>and DEI that they're potentially not picking the best candidates

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<v Speaker 6>and other candidates are being excluded. He is a problem

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<v Speaker 6>with the ideal ideological bias, as he said, which is

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<v Speaker 6>very left leaning at Harvard, and they should they should

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<v Speaker 6>promote more viewpoints than just one. And Harvard has said

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<v Speaker 6>they don't disagree with him on some of these points,

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<v Speaker 6>but they don't agree with the way Trump is trying

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<v Speaker 6>to implement this with you know, huge financial penalties. And

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<v Speaker 6>people say, well, Harvard's a private university. Why does the

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<v Speaker 6>US government have a say in this? And the US

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<v Speaker 6>government gives universities like Harvard, you know, billions of dollars

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<v Speaker 6>in invest in grants, grants, it's true, grants and contracts.

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<v Speaker 6>But the federal government also allows student visas. They allow

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<v Speaker 6>international students to come to study at universities.

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<v Speaker 2>Well, not necessarily. Now Politico is just reporting Paul. The

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<v Speaker 2>US orders halts a student visa interviews, so there is that.

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<v Speaker 3>Okay, So student visas.

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<v Speaker 6>Are regulated, you know, through the US government, and Harvard

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<v Speaker 6>has almost seven thousand international students. If you look at

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<v Speaker 6>the international community in total, it's more like ten thousand people,

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<v Speaker 6>which doesn't the lower number doesn't include people who are

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<v Speaker 6>here for fellowships or doing research and their families and

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<v Speaker 6>international students typically pay the full price. So there's more

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<v Speaker 6>than a million of them in the US, and it's

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<v Speaker 6>really propped up a lot of universities, including Harvard.

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<v Speaker 4>What's the legal path that Harvard has taken here?

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<v Speaker 6>So Harvard suit immediately and there's a temporary restraining order.

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<v Speaker 6>There's a hearing coming up this week, but procedurally that

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<v Speaker 6>we'll see what happens. But if you're an international student

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<v Speaker 6>and you're thinking, well, it's been my dream to come

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<v Speaker 6>to Harvard, should I go. I'm going to do a

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<v Speaker 6>program for two years or an undergrad for four years,

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<v Speaker 6>but maybe I'm not going to complete it. It's introducing

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<v Speaker 6>a huge amount of uncertainty in this calculation for students.

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<v Speaker 4>And what's happening on the ground. I could tell for

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<v Speaker 4>my time at Duke, kids are choosing not to come

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<v Speaker 4>to the US right in the study elsewhere, and some

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<v Speaker 4>of the best and brightest going to other places. And

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<v Speaker 4>what do those students do after they get the degrees?

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<v Speaker 4>They tend to stay there, right, right.

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<v Speaker 2>Because why would you run the risk of going there

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<v Speaker 2>for a year and all of a sudden being asked

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<v Speaker 2>to leave. Why not go some you know, Oxford is

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<v Speaker 2>just nice? Go ahead?

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<v Speaker 4>Why not?

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<v Speaker 6>Exactly?

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<v Speaker 2>Okay, So what happens like what I mean, Harvar's going

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<v Speaker 2>through the courts, But that's going to take forever, right.

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<v Speaker 6>No, I mean, you think about COVID when there was

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<v Speaker 6>a huge amount of uncertainty, people had the option of

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<v Speaker 6>taking a gap year, and the colleges were very accommodating

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<v Speaker 6>in that there's less at some point the pandemic was

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<v Speaker 6>going to end in real life, would return on campus.

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<v Speaker 6>But no, it could have a large impact for universities

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<v Speaker 6>in their bottom lines if they decide to go elsewhere.

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<v Speaker 4>So again, it's I'm guessing every other university in the

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<v Speaker 4>country is just kind of keeping their head down hoping

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<v Speaker 4>they don't get into those sites of President Trump. Is

0:12:34.120 --> 0:12:36.160
<v Speaker 4>there a sense that this is going to have a

0:12:36.200 --> 0:12:39.200
<v Speaker 4>real chilling effect on just higher education in general, in

0:12:39.320 --> 0:12:43.040
<v Speaker 4>terms of investment, in terms of recruiting the best and

0:12:43.040 --> 0:12:45.160
<v Speaker 4>brightest students and faculty and all that kind.

0:12:45.040 --> 0:12:47.960
<v Speaker 6>Of Well, there are a couple of things going on

0:12:48.080 --> 0:12:51.840
<v Speaker 6>within higher education, as Paul. You know, the cost of

0:12:51.880 --> 0:12:55.240
<v Speaker 6>it is something that I don't think any American is

0:12:55.280 --> 0:12:58.720
<v Speaker 6>going to disagree with. It's very high. You know, there's

0:12:58.760 --> 0:13:01.320
<v Speaker 6>a whole system of discount but you know, if you

0:13:01.360 --> 0:13:04.280
<v Speaker 6>look at some of the richest colleges, you know, more

0:13:04.320 --> 0:13:07.480
<v Speaker 6>than half actually pay the full price. Why is a

0:13:07.679 --> 0:13:09.959
<v Speaker 6>year at say Harvard Law School one hundred and twenty

0:13:10.000 --> 0:13:15.160
<v Speaker 6>thousand dollars. Why do students take six years to graduate

0:13:15.160 --> 0:13:17.800
<v Speaker 6>from college. There's a lot of issues within higher education

0:13:18.880 --> 0:13:22.480
<v Speaker 6>that should be addressed, and I think the American public

0:13:22.520 --> 0:13:26.520
<v Speaker 6>would like to see some of those things answered. But

0:13:27.120 --> 0:13:30.400
<v Speaker 6>the system is, you know, there's a lot of federal

0:13:30.800 --> 0:13:34.800
<v Speaker 6>money in this system, so in some ways the federal

0:13:34.840 --> 0:13:38.079
<v Speaker 6>government certainly has a right to ask a lot of questions.

0:13:38.400 --> 0:13:38.760
<v Speaker 5>Yeah.

0:13:38.840 --> 0:13:42.160
<v Speaker 4>Yeah, interesting, it's a tough time spread, oh my gosh. Yeah,

0:13:42.320 --> 0:13:44.520
<v Speaker 4>and they already had some of the just the fact

0:13:44.520 --> 0:13:46.920
<v Speaker 4>that there are fewer fewer candidates.

0:13:47.360 --> 0:13:49.320
<v Speaker 6>You know, because of pure demographics.

0:13:49.400 --> 0:13:50.199
<v Speaker 4>Yeah, demographics.

0:13:50.600 --> 0:13:52.440
<v Speaker 2>And yeah, there was one area where you didn't think

0:13:52.480 --> 0:13:55.400
<v Speaker 2>would be affected by elections like you might have thought education.

0:13:55.520 --> 0:13:57.400
<v Speaker 2>But anyway, all right, Jane, thanks a lot. Jane Lauren

0:13:57.400 --> 0:14:00.640
<v Speaker 2>Boomberg higher education finance reporter on the latest President Trump

0:14:00.720 --> 0:14:03.880
<v Speaker 2>versus Harvard University very much sort of as we walk

0:14:03.960 --> 0:14:06.480
<v Speaker 2>through that issue between the two of them.

0:14:07.840 --> 0:14:11.520
<v Speaker 1>You're listening to the Bloomberg Intelligence Podcast. Catch us live

0:14:11.600 --> 0:14:15.000
<v Speaker 1>weekdays at ten am Eastern on Applecarplay and Android Auto

0:14:15.080 --> 0:14:18.160
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0:14:18.200 --> 0:14:21.200
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0:14:21.800 --> 0:14:24.720
<v Speaker 2>Alex Steel alongside paulse we need. This is Bloomberg Intelligence Ready.

0:14:24.760 --> 0:14:27.040
<v Speaker 2>We bring you all the top news and business, economics

0:14:27.040 --> 0:14:29.280
<v Speaker 2>and finance through our lens of our Bloomberg Intelligence folks.

0:14:29.280 --> 0:14:31.560
<v Speaker 2>They cover two thousand companies and one hundred thirty industries

0:14:31.840 --> 0:14:34.480
<v Speaker 2>all around the world. All right, as we have raids

0:14:34.520 --> 0:14:37.160
<v Speaker 2>still treading around that five percent level for the thirty year,

0:14:37.200 --> 0:14:40.040
<v Speaker 2>despite the fact that rates have come down a touch

0:14:40.080 --> 0:14:42.480
<v Speaker 2>over the last two days, it does bring into question

0:14:42.720 --> 0:14:46.640
<v Speaker 2>what happens with commercial real estate. Patrick Wilson, portfolio manager

0:14:46.640 --> 0:14:49.640
<v Speaker 2>of Center Square Investments, joins us. Next, Okay, what's the

0:14:49.680 --> 0:14:51.120
<v Speaker 2>remarket looking like right now?

0:14:52.880 --> 0:14:56.680
<v Speaker 7>Yeah, so it's been very interesting, to say the least

0:14:56.680 --> 0:15:01.040
<v Speaker 7>to start the year. Obviously, trade policy has affected all

0:15:01.160 --> 0:15:04.680
<v Speaker 7>asset classes across the economy, but in terms of reachs,

0:15:04.720 --> 0:15:08.760
<v Speaker 7>you know, we are seeing things like interest rate volatility. Obviously,

0:15:08.920 --> 0:15:12.240
<v Speaker 7>reats are a pretty capital intensive business, so the issuing

0:15:12.280 --> 0:15:15.600
<v Speaker 7>of debt and equity capital has had to be really

0:15:15.640 --> 0:15:18.800
<v Speaker 7>precisely timed. I mean, just this year, we've been from

0:15:18.840 --> 0:15:21.160
<v Speaker 7>a four point eight percent yield on the tenure to

0:15:21.400 --> 0:15:24.640
<v Speaker 7>bottoming at three ninety nine. Depending on where you were

0:15:24.680 --> 0:15:27.040
<v Speaker 7>in and when you were in the queue, it could

0:15:27.040 --> 0:15:30.040
<v Speaker 7>either scuttle or even postpone some of your debt and

0:15:30.080 --> 0:15:34.120
<v Speaker 7>equity issuance on that front. So it's been times where

0:15:34.120 --> 0:15:38.520
<v Speaker 7>we've also seen development starts year to date have also

0:15:39.120 --> 0:15:41.440
<v Speaker 7>slowed on the reach side and commercial real estate as

0:15:41.440 --> 0:15:44.280
<v Speaker 7>a whole, And obviously that relates to the tariffs and

0:15:44.640 --> 0:15:47.560
<v Speaker 7>the thread of cost overruns and whatnot being a little

0:15:47.600 --> 0:15:49.720
<v Speaker 7>bit more difficult to forecast, and so it's kind of

0:15:50.120 --> 0:15:52.200
<v Speaker 7>taking a wait and see approach to the market a

0:15:52.240 --> 0:15:52.640
<v Speaker 7>little bit.

0:15:53.480 --> 0:15:55.880
<v Speaker 4>So in the commercial real estate space, how's that the

0:15:55.920 --> 0:15:59.120
<v Speaker 4>deal flow been. It doesn't seem like I'm reading a

0:15:59.160 --> 0:16:01.440
<v Speaker 4>lot about deals getting done.

0:16:02.840 --> 0:16:06.840
<v Speaker 7>Yeah, it's a great point. There's if you roll back

0:16:06.840 --> 0:16:09.280
<v Speaker 7>the clock, we actually came into this year at very

0:16:09.320 --> 0:16:13.800
<v Speaker 7>healthy levels. That was when the agenda on the Trump

0:16:13.840 --> 0:16:16.800
<v Speaker 7>administration was going to be very pro growth. People were

0:16:16.800 --> 0:16:19.000
<v Speaker 7>a little bit more gung ho and more optimistic about

0:16:19.040 --> 0:16:22.800
<v Speaker 7>our economic outlook. And then as we roll through early

0:16:22.840 --> 0:16:27.520
<v Speaker 7>April and what's occurred since, there's definitely been some trepidation

0:16:27.640 --> 0:16:31.360
<v Speaker 7>coming through. And so we've seen things like property transactions

0:16:31.840 --> 0:16:35.920
<v Speaker 7>by count, so property transaction count and portfolio acquisitions, Larger

0:16:36.040 --> 0:16:39.000
<v Speaker 7>M and A deals certainly get you postponed or in

0:16:39.040 --> 0:16:41.480
<v Speaker 7>some cases possibly have been pulled back as a result

0:16:41.560 --> 0:16:43.800
<v Speaker 7>of just not having that same amount of confidence on

0:16:44.040 --> 0:16:45.240
<v Speaker 7>where the economy is heading.

0:16:46.400 --> 0:16:49.720
<v Speaker 2>What areas in the market can kind of weather this storm, right,

0:16:49.760 --> 0:16:51.520
<v Speaker 2>Like we obviously had the data center build up, but

0:16:51.520 --> 0:16:54.600
<v Speaker 2>even that has been trimming around the edges, right and

0:16:54.640 --> 0:16:57.440
<v Speaker 2>sort of changing the type of investments that's going into

0:16:57.480 --> 0:16:59.880
<v Speaker 2>AI and data centers as well.

0:17:01.800 --> 0:17:05.760
<v Speaker 7>Yeah, so you're speaking more broadly to just areas where

0:17:05.800 --> 0:17:06.280
<v Speaker 7>you could.

0:17:06.960 --> 0:17:09.920
<v Speaker 2>Well typically like the bull case for Readze was data centers, right,

0:17:10.320 --> 0:17:12.800
<v Speaker 2>But then now it does feel like that narrative is

0:17:13.280 --> 0:17:15.520
<v Speaker 2>not changing but shifting a little bit and trimming like

0:17:15.560 --> 0:17:17.919
<v Speaker 2>maybe we're going to go more to the infront stage,

0:17:17.920 --> 0:17:20.000
<v Speaker 2>so you need to build different types of centers in

0:17:20.080 --> 0:17:23.440
<v Speaker 2>different areas versus the huge behemoth data centers.

0:17:24.280 --> 0:17:28.320
<v Speaker 7>Yeah, no, that's definitely fair. You know, you're speaking to

0:17:28.359 --> 0:17:32.720
<v Speaker 7>the transition from training in data centers often far flung

0:17:32.760 --> 0:17:36.440
<v Speaker 7>where power and land was widely available, to now bringing

0:17:36.480 --> 0:17:39.520
<v Speaker 7>it more to the inference phase of the data center buildout,

0:17:39.560 --> 0:17:42.639
<v Speaker 7>which has to be closer to population density. So what

0:17:42.680 --> 0:17:45.400
<v Speaker 7>we see here is that making its way into main

0:17:45.440 --> 0:17:48.960
<v Speaker 7>street America where we start seeing you know, Microsoft Copilot

0:17:49.720 --> 0:17:52.719
<v Speaker 7>being integrated into your workflows and that has to have

0:17:52.760 --> 0:17:56.000
<v Speaker 7>a lower latency. So we're in the crux of kind

0:17:56.000 --> 0:17:58.840
<v Speaker 7>of that transition. We've seen over the last few quarters

0:17:58.880 --> 0:18:03.080
<v Speaker 7>more and more discussion inferencing truly taking place in the

0:18:03.160 --> 0:18:05.920
<v Speaker 7>data center reads. So those would be Digital Realty TICK

0:18:06.000 --> 0:18:10.359
<v Speaker 7>or DLR EQUINIX eqi X, those would be two platforms

0:18:10.359 --> 0:18:12.720
<v Speaker 7>that are starting to speak to where they have a

0:18:12.760 --> 0:18:17.679
<v Speaker 7>greater amount of network, dense collocation and facilities where that

0:18:17.800 --> 0:18:20.240
<v Speaker 7>latency does matter, and you start to see that AI

0:18:20.480 --> 0:18:22.920
<v Speaker 7>inferencing take place. And so that's kind of a new

0:18:22.920 --> 0:18:25.080
<v Speaker 7>phenomenon over the last few quarters.

0:18:25.960 --> 0:18:28.760
<v Speaker 4>So as Michael McKee walks into the studio, I naturally

0:18:28.800 --> 0:18:36.679
<v Speaker 4>think of senior housing package. Wow, that's got to be

0:18:36.960 --> 0:18:39.639
<v Speaker 4>a long term bullish story in your space.

0:18:40.680 --> 0:18:44.200
<v Speaker 7>Yes, it is. At Center Square. We really do have

0:18:44.320 --> 0:18:47.600
<v Speaker 7>a very optimistic view and outlook for the senior housing space.

0:18:47.680 --> 0:18:51.600
<v Speaker 7>So we in the demographics, not just in the US,

0:18:51.640 --> 0:18:54.399
<v Speaker 7>but across the globe, there is the concept of the

0:18:54.640 --> 0:18:57.280
<v Speaker 7>baby boomer generation moving through a bit of you know,

0:18:57.320 --> 0:18:59.400
<v Speaker 7>pigging the python, if you will, as we move through

0:19:00.080 --> 0:19:04.080
<v Speaker 7>that age cohort and they're sitting on a profound amount

0:19:04.200 --> 0:19:07.280
<v Speaker 7>of equity capital in their homes, so the capacity to

0:19:07.320 --> 0:19:10.520
<v Speaker 7>pay is very, very high, and demographically speaking, this kind

0:19:10.520 --> 0:19:12.879
<v Speaker 7>of speaks to that secular demand that we're targeting at

0:19:12.880 --> 0:19:15.960
<v Speaker 7>Center Square right now to kind of buffer any economic weakness.

0:19:16.280 --> 0:19:19.159
<v Speaker 7>What we see is the keger in the eighty plus

0:19:19.200 --> 0:19:22.000
<v Speaker 7>population that we've seen over the last really twenty years

0:19:22.040 --> 0:19:24.719
<v Speaker 7>has been hovering at one one and a half percent,

0:19:25.320 --> 0:19:28.600
<v Speaker 7>and starting about next year, that keger will increase to

0:19:28.920 --> 0:19:32.280
<v Speaker 7>four four and a half percent of that eighty plus population.

0:19:32.359 --> 0:19:35.720
<v Speaker 7>And we don't see, again real estate being a very

0:19:35.760 --> 0:19:39.879
<v Speaker 7>supply and demand driven industry, we don't see really any

0:19:39.960 --> 0:19:44.080
<v Speaker 7>supply on the horizon that will satiate that uptick in demand.

0:19:44.160 --> 0:19:47.560
<v Speaker 7>So combining the capacity to pay along with the really

0:19:47.600 --> 0:19:52.399
<v Speaker 7>really favorable demographic led demand coming through, we see that

0:19:52.480 --> 0:19:54.960
<v Speaker 7>to be very very favorable for senior housing going forward.

0:19:55.560 --> 0:19:57.480
<v Speaker 2>All right, really great, really appreciate it. Come back. We

0:19:57.600 --> 0:19:59.960
<v Speaker 2>love to a continue to update from you. Patrick Wilson

0:20:00.480 --> 0:20:03.000
<v Speaker 2>joining us on the reed market and where there is

0:20:03.000 --> 0:20:06.440
<v Speaker 2>still value. Patrick Wilson, Portfolio manager of Center Square Investment.

0:20:07.080 --> 0:20:11.720
<v Speaker 1>This is the Bloomberg Intelligence Podcast, available on Apple, Spotify,

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