WEBVTT - BNY Mellon Pershing Insite Day One 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carol Masser and I'm 0:00:04.440 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanibek. We're here every day bringing 0:00:07.280 --> 0:00:09.799 you the latest news from the world of business and finance, 0:00:09.840 --> 0:00:13.640 clus technology, politics, economics, all partnising the power of Business 0:00:13.640 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:19.640 analyst in more than one and twenty countries. You can 0:00:19.640 --> 0:00:23.160 download Bloomberg Business weekn iTunes, SoundCloud, or Bloomberg dot com. 0:00:23.400 --> 0:00:25.160 You can also listen to our radio show at two 0:00:25.160 --> 0:00:27.840 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.880 --> 0:00:32.159 YouTube search Bloomberg Clobal News. We are live from the 0:00:32.159 --> 0:00:34.800 Gaylord Texan Convention Center in Dallas, Texas, at the B 0:00:34.880 --> 0:00:38.440 and Y Melon Perging Inside Conference. Two thousand members of 0:00:38.520 --> 0:00:41.479 the financial advice community gathered here. There are a lot 0:00:41.520 --> 0:00:44.879 of them gathered around us. It's all about learning, inspiration, networking. 0:00:44.880 --> 0:00:47.360 I've got two perfect guests to talk about some of 0:00:47.360 --> 0:00:49.479 the key topics. Jim Crowley is CEO of B and 0:00:49.600 --> 0:00:52.120 y Mail and Persing. Emily Schlausser is CEO of B 0:00:52.240 --> 0:00:54.920 and y Mail and Pershing and uh. Last time I 0:00:54.960 --> 0:00:57.279 think we talked in person, all of us was back 0:00:57.280 --> 0:01:00.800 in twenty nineteen. We've done some things. Virtually. Where are 0:01:00.840 --> 0:01:03.240 we in terms of the environment, Jim, let's start with 0:01:03.280 --> 0:01:05.120 you in terms of what's top of mind for everybody 0:01:05.160 --> 0:01:06.800 right now. First of all, thanks for being here. It's 0:01:06.920 --> 0:01:09.080 great to see you in person. Tin, Thanks for having us. 0:01:09.880 --> 0:01:12.920 The top of mind is just being back. That's how 0:01:12.959 --> 0:01:15.560 I started off our remarks today. Just being back in 0:01:15.640 --> 0:01:20.080 your room. The energy felt incredible. It's just wonderful beat 0:01:20.160 --> 0:01:21.720 to see all of our clients back here in the 0:01:21.800 --> 0:01:25.240 room and just engage network with them. So that's top 0:01:25.280 --> 0:01:27.520 of mind for me. Yeah, have it for you, Emily. 0:01:27.560 --> 0:01:29.520 I'll build on that. Of course, being back, and then 0:01:29.600 --> 0:01:31.320 I think just you know, last time I think we 0:01:31.400 --> 0:01:33.440 talked for the virtual that was like, okay, what's it 0:01:33.480 --> 0:01:35.440 like working from home? Right? That was top of mine. Right. 0:01:35.840 --> 0:01:37.479 The top of mind is not having to talk about 0:01:37.480 --> 0:01:40.679 that anymore. Although we are certainly focused on future of 0:01:40.680 --> 0:01:42.360 work and how we can have a bit of a hybrid, 0:01:42.520 --> 0:01:45.440 but I think also just the focus on digital and 0:01:45.480 --> 0:01:50.720 so we're really focused on our interfaces, our experiences, bringing 0:01:50.760 --> 0:01:55.480 consumer grade technology to our investors, our advisors. So that's 0:01:55.480 --> 0:01:57.520 a lot of what we're featuring here at the conferences. 0:01:57.640 --> 0:01:59.080 It was well, I want to bring Tim in. Come 0:01:59.080 --> 0:02:01.240 on and Tim, guys, I'm looking forward to seeing you 0:02:01.280 --> 0:02:04.760 tomorrow after my flight arrives late tonight. Jim, I want 0:02:04.800 --> 0:02:07.720 to go back to you because you've said that you 0:02:07.720 --> 0:02:09.680 know you're focused on being back, and I know that 0:02:09.720 --> 0:02:12.760 being back comes with a host of challenges as well. 0:02:12.800 --> 0:02:15.520 As the world does open up and people start to 0:02:15.560 --> 0:02:19.760 travel more. We're in an inflationary environment right now, and 0:02:19.880 --> 0:02:22.760 I'm wondering from your perspective, how you're dealing with those 0:02:22.840 --> 0:02:25.560 challenges when you look across the macroeconomic planscape. What's top 0:02:25.600 --> 0:02:29.040 of mind for you? Yeah, what's stop my mind? Tim, 0:02:29.080 --> 0:02:31.720 Thanks for the question. A couple of things. One, UM, 0:02:31.760 --> 0:02:33.799 I've been on the road, like I think many other 0:02:33.840 --> 0:02:38.040 executives for the less several months, visiting offices. UM to 0:02:38.240 --> 0:02:40.920 encourage people to come back into the office. First of all, 0:02:41.360 --> 0:02:43.960 we're in this new environment. Are they coming back? They 0:02:44.000 --> 0:02:47.400 are coming back slowly. UM. And the way that I 0:02:47.400 --> 0:02:50.200 think about it, Tim mc carroll is, I think the 0:02:50.720 --> 0:02:53.560 value proposition for an employee to want to come back 0:02:53.600 --> 0:02:56.880 to the office has to be greater than the value 0:02:56.919 --> 0:03:00.560 that they feel and belief from working from home, and 0:03:01.320 --> 0:03:03.440 that is the magic that we have to create. We 0:03:03.480 --> 0:03:05.480 have to be able to demonstrate that there's real value 0:03:05.480 --> 0:03:08.480 to have a questional interaction and to feel the culture 0:03:08.639 --> 0:03:12.040 and to no one understand what it's like to to 0:03:12.320 --> 0:03:16.240 learn and understand what we all do as as a 0:03:16.320 --> 0:03:19.760 company together. So I do think we're better together right 0:03:19.840 --> 0:03:21.840 than being a far apart. One thing I wanted to 0:03:21.880 --> 0:03:23.760 ask you, and I was from a far watching you 0:03:23.919 --> 0:03:27.280 interview the former CEO of PepsiCo, Indra Nui, who I've talked. 0:03:27.520 --> 0:03:30.320 She's pretty incredible and she's now helping other companies. Right 0:03:30.320 --> 0:03:33.520 when it comes to leadership, leadership has been tested in 0:03:33.520 --> 0:03:35.240 a big way in the last couple of years. It's 0:03:35.240 --> 0:03:37.240 going to continue to be tested as we moved to 0:03:37.360 --> 0:03:40.000 a new normal. Um, tell us a bit about the 0:03:40.000 --> 0:03:43.120 conversation and which up to out in terms of her advice, 0:03:43.160 --> 0:03:46.280 maybe yeah, um, so many great nuggets. One of the 0:03:46.320 --> 0:03:49.680 things that she talks about is the future of work 0:03:49.800 --> 0:03:52.720 and the importance of flexibilities. So while I agree with Jim, 0:03:52.760 --> 0:03:55.120 being back together feel so good and it's a really 0:03:55.160 --> 0:03:59.320 important part of developing the fabric of our organizations, there 0:03:59.440 --> 0:04:03.800 is also a critical notion of allowing for flexibility, allowing 0:04:04.000 --> 0:04:08.560 for the families of our employees to really be more 0:04:08.640 --> 0:04:10.920 front and center in terms of how we think about 0:04:10.960 --> 0:04:13.840 the future of work, so that people can kind of 0:04:13.960 --> 0:04:17.479 lean into their careers while not pushing having to push 0:04:17.480 --> 0:04:19.680 their families aside, and not having to make so many 0:04:19.720 --> 0:04:23.080 of those hard choices. You know what I love about that? Yeah, 0:04:23.279 --> 0:04:24.680 And I want to I just want to jump in 0:04:24.720 --> 0:04:29.080 because Emily, I love I love that I've actually yeah, 0:04:29.160 --> 0:04:32.039 especially especially this week. And you know what's great is 0:04:32.040 --> 0:04:34.440 I'm you know, a lot of my friends have young kids, 0:04:34.440 --> 0:04:35.960 and it's the end of the year. They're going and 0:04:36.000 --> 0:04:37.920 catching end of the year school plays and end of 0:04:37.920 --> 0:04:40.240 the year graduations right now, and there seems to be 0:04:40.279 --> 0:04:44.040 this new acceptance in the professional world that these types 0:04:44.080 --> 0:04:46.080 of things are are okay to do as long as 0:04:46.080 --> 0:04:48.320 you do get your work done. And Emily, I wasn't 0:04:48.360 --> 0:04:51.560 seeing this, you know, before the pandemic. Does this shift? 0:04:52.000 --> 0:04:56.159 Does this Is this shift permanent? I hope it is. 0:04:56.560 --> 0:04:58.359 I hope it is, and I think it will be. 0:04:58.440 --> 0:05:01.440 I think it has to be. Certainly, as we've seen 0:05:01.720 --> 0:05:05.960 the labor market titan, it is incumbent on employers to 0:05:06.040 --> 0:05:08.919 make sure that we are really providing the experiences for 0:05:09.000 --> 0:05:11.600 the people who work for us that want they make 0:05:11.640 --> 0:05:14.400 them want to stay in the workforce. Um, so I 0:05:14.400 --> 0:05:15.680 think it has to be. You know, one of the 0:05:15.720 --> 0:05:19.120 things that Indra has observed in her time having been 0:05:19.240 --> 0:05:23.799 retired post pandemic is she's you know, driving around and 0:05:23.839 --> 0:05:27.240 seeing at three o'clock all these parents meeting their kids 0:05:27.279 --> 0:05:30.320 off the bus and they're just taking ten minutes out 0:05:30.360 --> 0:05:33.240 of their day working from home to go greet their 0:05:33.320 --> 0:05:35.159 kids as they come home from school. And what a 0:05:35.240 --> 0:05:38.799 special moment that previously no one in the professional world 0:05:38.800 --> 0:05:41.960 really had. It almost wasn't acceptable, and it wasn't It 0:05:42.000 --> 0:05:47.680 wasn't acceptable, especially for women, especially for women. Sorry, go ahead, 0:05:47.720 --> 0:05:50.320 Now it's encouraged. Yeah, and that is encouraged, and now 0:05:50.400 --> 0:05:53.040 everyone is understanding of what that means, what this new 0:05:53.120 --> 0:05:55.640 hybrid work environment means. Well, this is important as I 0:05:55.680 --> 0:05:57.480 think about all of the folks here who are thinking 0:05:57.480 --> 0:05:59.760 about their staffing for the future, right and what they 0:05:59.760 --> 0:06:02.040 need be thinking about. And I'm assuming that this is 0:06:02.080 --> 0:06:03.839 why they're trying to figure out do I need to 0:06:03.839 --> 0:06:06.800 continue to have to offer this flexibility going forward to 0:06:06.880 --> 0:06:11.680 attract that new breed younger generation of finance professionals. Absolutely, Yeah, 0:06:11.720 --> 0:06:13.880 you absolutely have to. In fact, I talked about it 0:06:13.920 --> 0:06:17.240 on the main stage earlier today, the idea of what 0:06:17.279 --> 0:06:20.320 we need to do to keep great talent, what we 0:06:20.360 --> 0:06:22.120 need to do to coach great talent, what we need 0:06:22.160 --> 0:06:25.360 to do attract great talent. And at that point, exactly, 0:06:25.360 --> 0:06:27.520 we're not gonna be able to attract great talent to 0:06:27.520 --> 0:06:31.240 our organization or to any work team unless we have 0:06:31.400 --> 0:06:36.240 that flexibility built in. Yeah, Jim has really spent a 0:06:36.240 --> 0:06:38.640 lot of time no good, And I was just gonna say, 0:06:38.680 --> 0:06:40.880 we spent a lot of time listening to our employees 0:06:40.920 --> 0:06:43.120 and really listening to what's important to them. And these 0:06:43.160 --> 0:06:45.640 are the things that really make a huge moment. I 0:06:45.640 --> 0:06:47.839 mean it's ten minutes and it really changes the day. 0:06:47.920 --> 0:06:49.920 You know, they always say about a conversations, those moments 0:06:49.960 --> 0:06:52.440 where you don't constantly think about what you're gonna ask next, 0:06:52.520 --> 0:06:54.520 but just let it breathe and listen, and listening is 0:06:54.560 --> 0:06:56.640 just so powerful. I do have to ask you, though, 0:06:56.680 --> 0:07:00.360 an extreme volatility that we've seen, are we being minded 0:07:00.400 --> 0:07:03.440 in this environment? I'm I'm curious what you're hearing from 0:07:03.440 --> 0:07:07.560 everybody that you know rethinking that you know, volatility, a 0:07:07.600 --> 0:07:09.760 bit of it, a fair amount of it is normal, 0:07:10.680 --> 0:07:13.160 like in our environment, it is normal, but not what 0:07:13.480 --> 0:07:16.440 many of the people in our workforce today have ever experienced. 0:07:16.680 --> 0:07:18.960 All right, so this hasn't been the case for the 0:07:19.040 --> 0:07:23.480 last ten years, and now we haven't and it's I 0:07:23.520 --> 0:07:26.240 think really important that we have again. It's one of 0:07:26.280 --> 0:07:30.560 the reasons why being in the office sometimes have the 0:07:30.560 --> 0:07:33.560 opportunity to bring young talent and experienced talent together to 0:07:33.560 --> 0:07:36.800 start of work through the challenges of volatility. Are you 0:07:36.840 --> 0:07:38.760 recommend go ahead? No, please? Now, I was gonna say 0:07:38.800 --> 0:07:40.200 it's it's a good reminder. I mean, this is the 0:07:40.200 --> 0:07:42.880 third year in a row where we've had really outstanding 0:07:42.960 --> 0:07:46.800 moments where we've said, wow, you know that this volatility 0:07:46.880 --> 0:07:49.679 feels incredible, but then at that point it no longer 0:07:49.800 --> 0:07:52.760 is right exactly exactly. If I think we're going to 0:07:52.840 --> 0:07:55.240 look back at this era the last few years and 0:07:55.320 --> 0:07:58.240 just understand that we were pivoting onto so many different 0:07:58.280 --> 0:08:00.480 points and I think coming out strong. And now we've 0:08:00.480 --> 0:08:05.360 got some music. This is all the key notes over 0:08:06.120 --> 0:08:09.440 they must say, um, thank you both, really appreciate. We're 0:08:09.440 --> 0:08:11.840 looking forward to tomorrow and all the conversations. We're gonna 0:08:11.880 --> 0:08:14.400 have good luck with everything, and thank you so much. 0:08:14.400 --> 0:08:16.560 Of course, we've been talking with Jim Crowley CEO B 0:08:16.640 --> 0:08:19.560 and Y mel And Persing and Emily Schlauser CEOO B 0:08:19.680 --> 0:08:22.600 and Y mel And Persing. You're listening to Bloomberg Business 0:08:22.640 --> 0:08:26.440 Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic 0:08:26.920 --> 0:08:30.840 on Bloomberg Radio. My from the Gaylord Texas Convention Center 0:08:30.880 --> 0:08:33.200 in Dallas, Texas at the b N Y mel And Perging. 0:08:33.240 --> 0:08:37.240 Inside conference, there are several thousand members of the financial 0:08:37.240 --> 0:08:40.040 advice community. They are here. They're coming out of sessions, 0:08:40.040 --> 0:08:42.760 they're coming out of key notes. Uh. And it's all 0:08:42.800 --> 0:08:45.560 about learning, inspiration, networking and really understanding kind of the 0:08:45.600 --> 0:08:48.319 next set of trends. And we're gonna have some conversations 0:08:48.320 --> 0:08:50.640 from there as well. And I've also got a Dallas cowboy, 0:08:50.679 --> 0:08:53.079 or at least somebody in a costume of walking around 0:08:53.120 --> 0:08:55.840 to as not a costume, Carol, it's Texas. You know, 0:08:56.640 --> 0:09:00.800 it's probably a real cowboy. It's a real cowboy. It's 0:09:00.840 --> 0:09:05.640 a real cowboy. Uh. Interestingly enough, Uh, you know, I 0:09:05.720 --> 0:09:07.720 think it's interesting. I think there's so much going on 0:09:07.760 --> 0:09:10.360 certainly in the big macro picture, right and the FED 0:09:10.800 --> 0:09:13.000 and also global central banks. We didn't even get to 0:09:13.000 --> 0:09:15.040 talk about that emergency meeting by the e c B 0:09:15.200 --> 0:09:19.520 this morning. So so much going on and just getting settled, 0:09:19.679 --> 0:09:21.760 and because he's had a busy day already and we're 0:09:21.760 --> 0:09:24.439 delighted to have with them. With us is Ben Harrison. 0:09:24.480 --> 0:09:26.959 He's cohead of Wealth Solutions at B and Y Melon Pershing. 0:09:27.559 --> 0:09:30.160 On site here at B and Y Melon Pershing's inside 0:09:30.200 --> 0:09:33.480 twenty two conference. We do have um oh, actually coming 0:09:33.520 --> 0:09:34.960 into the picture. Do you want to come on over 0:09:35.280 --> 0:09:39.400 the Dallas Cowboy? Oh? Look, that is a real cowboy, Susie. 0:09:41.200 --> 0:09:43.320 I wasn't kidding. I don't know if he's got any 0:09:43.320 --> 0:09:46.199 financial advice. I don't know. Are you upbeat? Is the 0:09:46.200 --> 0:09:50.480 glass half full? The glass half empty? Uh? Not? All right, 0:09:50.520 --> 0:09:52.000 we gotta do a little bit of an interview. We're 0:09:52.000 --> 0:09:54.640 gonna talk about the financial community. But good, good to 0:09:54.640 --> 0:09:56.880 see you. All right, we'll see you. Gotta get a microphone, 0:09:56.960 --> 0:10:01.440 Carol on the cowboy. All right, let's get to Ben here. 0:10:02.240 --> 0:10:04.520 So Ben, how are you and what's top of mind 0:10:04.600 --> 0:10:06.360 right now? And I think about all of the investment 0:10:06.360 --> 0:10:08.720 advisors that you are talking to and try to address 0:10:08.800 --> 0:10:11.280 at the event this year. Sure, well, thanks for being here. 0:10:11.320 --> 0:10:15.080 So and I actually just came off of a panel 0:10:15.120 --> 0:10:17.440 session and we talked about the future of financial advice 0:10:17.440 --> 0:10:19.560 and wealth management. Covered a lot of a lot of 0:10:19.600 --> 0:10:22.800 ground and thinking about that younger generation, thinking about the 0:10:22.840 --> 0:10:27.200 younger generation, and actually here at Insight, we have a 0:10:27.240 --> 0:10:30.560 couple of really cool experiences for the next generation. We've 0:10:30.559 --> 0:10:33.840 got a student center where we have around here. Yeah, 0:10:33.880 --> 0:10:38.120 we have over uh twelve universities participating, over sixty five 0:10:38.160 --> 0:10:42.000 students that are enrolled in CFP programs focused on financial planning. 0:10:42.000 --> 0:10:44.880 They're going to come into this profession and be that 0:10:45.000 --> 0:10:48.720 next generation of leadership. We also have a next Leadership 0:10:48.800 --> 0:10:52.320 Forum that we're hosting for advisory firms to send their 0:10:52.720 --> 0:10:56.600 next gen leaders. We've got a cohort of those individuals 0:10:56.640 --> 0:10:59.960 that we meet with on a regular time, sometimes in person, 0:11:00.160 --> 0:11:03.640 sometimes remotely. But it's great to be back in person here. 0:11:03.720 --> 0:11:05.280 It's great to have be back in person. Tim. Come 0:11:05.320 --> 0:11:07.120 on into the conversation. Tim, my co host, is going 0:11:07.160 --> 0:11:09.320 to be joining us tomorrow. He's actually at Zoo, but 0:11:09.360 --> 0:11:11.120 you'll hear him in your ear. Okay, Ben, good to 0:11:11.160 --> 0:11:13.120 have you with us, Thanks for joining us. I'm wondering 0:11:13.400 --> 0:11:16.080 what the younger generation is looking for. What are the 0:11:16.120 --> 0:11:20.080 differences in attracting the next group of talent, Like, what 0:11:20.120 --> 0:11:22.280 do you have to do differently to make sure that 0:11:22.400 --> 0:11:25.240 they thrive in the industry? You really have to give 0:11:25.320 --> 0:11:28.760 him a purpose, right, it's um it's a different industry 0:11:28.920 --> 0:11:33.280 and it's a different um uh you know, challenge for 0:11:33.320 --> 0:11:36.439 all of us to think about how we can recruit 0:11:37.040 --> 0:11:41.240 new talent into this market. Uh. And it's such a 0:11:41.440 --> 0:11:45.120 rewarding profession. Actually, you get to spend time with people, 0:11:45.720 --> 0:11:49.880 You get to impact their lives, You get to uh 0:11:50.559 --> 0:11:55.800 really get very deep in terms of uh into the 0:11:55.880 --> 0:11:59.600 minds of what makes people tick and moves them. And 0:12:00.080 --> 0:12:03.200 if you think about financial planning and financial advice, it's 0:12:03.280 --> 0:12:08.280 really less about the money and more about how people 0:12:08.440 --> 0:12:12.080 feel about the impact of their lives. So so I 0:12:12.120 --> 0:12:14.640 think that you need to draw young people in by 0:12:14.640 --> 0:12:19.240 sharing that it's not all about uh money in sales 0:12:19.720 --> 0:12:23.160 and what we'll like in the in the past. Right, 0:12:23.160 --> 0:12:25.400 what's what's top of mind? I was video press release 0:12:25.760 --> 0:12:28.680 att yesterday about Insight, and it quoted you saying the 0:12:28.720 --> 0:12:31.960 next generation of talent has the power to reshape our industry. 0:12:32.240 --> 0:12:33.960 What did we all get ready for in terms of 0:12:34.000 --> 0:12:37.640 that reshaping? Yeah, actually, it's uh, it's interesting that the 0:12:37.679 --> 0:12:42.079 financial services marketplace actually has a better perception now than 0:12:42.200 --> 0:12:44.920 we've had in the past. But we still have a 0:12:45.040 --> 0:12:49.840 lot of work to do in order to change the demographics. 0:12:49.840 --> 0:12:52.400 If still I mean we're investing in the next gen 0:12:52.880 --> 0:12:55.440 and also in diversity, equity and inclusion, and if you 0:12:55.440 --> 0:12:58.080 look around at the participants at the conference, it's still 0:12:58.120 --> 0:13:00.600 doesn't look the way that we want it to. Um. 0:13:00.720 --> 0:13:04.680 So uh, the next gen leaders can really focus on 0:13:05.000 --> 0:13:09.800 being very intentional about what the workplace of the future 0:13:09.840 --> 0:13:12.640 looks like, how to serve clients in a new and 0:13:12.679 --> 0:13:17.720 innovative way. Uh, what their fellow coworkers are gonna look like, 0:13:17.880 --> 0:13:22.679 and and diversity of perspective and diversity of of background, 0:13:22.760 --> 0:13:26.720 and how they can really uh change and reshape the 0:13:26.760 --> 0:13:30.880 way reimagine, as we're saying here at Insight, what what 0:13:30.920 --> 0:13:32.720 the industry looks like. Well, I feel like this all 0:13:32.760 --> 0:13:35.040 fits into a panameny to more about the future of money. 0:13:35.080 --> 0:13:37.880 So looking forward to it, um technology tell me about 0:13:37.920 --> 0:13:41.400 the role of technology, whether it's defy, whether it's blockchain. 0:13:41.480 --> 0:13:44.440 How do you think about it? Well, technology should at 0:13:45.240 --> 0:13:48.760 Technology is so critical to the way in which advice 0:13:48.920 --> 0:13:53.800 is delivered. And we've seen a an evolution of technology 0:13:54.200 --> 0:13:58.240 really over the last several years. And in the last decade, 0:13:58.240 --> 0:14:02.080 we've seen so many finn tech companies, wealth tech companies 0:14:02.120 --> 0:14:05.600 come into the space, uh in really giving tools for 0:14:05.640 --> 0:14:07.880 advisors to be able to scale their business, to be 0:14:07.920 --> 0:14:10.480 able to serve their clients much more effectively. And if 0:14:10.480 --> 0:14:13.120 you think about what we've just gone through, uh in 0:14:13.200 --> 0:14:16.680 the last um two years during the pandemic, it's really 0:14:16.679 --> 0:14:21.640 accelerated the digitization and the way in which investors are 0:14:21.680 --> 0:14:25.880 comfortable engaging with their financial professionals in terms of e 0:14:26.080 --> 0:14:31.080 signature and you know, a paperless environment. We we declared 0:14:31.120 --> 0:14:33.680 here at Insight we're going paper free in twenty three. 0:14:33.920 --> 0:14:36.520 Don't look at my papers, papers all over the desk 0:14:36.560 --> 0:14:38.720 care beause we got to clean that up a little bit. 0:14:39.080 --> 0:14:40.840 But are you serious? Is that? Where is that where 0:14:40.840 --> 0:14:43.840 we're going? Oh? Absolutely, uh? In terms of the way 0:14:43.880 --> 0:14:48.720 in which uh, the entire UH financial advice spectrum is 0:14:48.720 --> 0:14:52.480 going to be uh you know, invested in and evolve 0:14:52.600 --> 0:14:55.040 over time. Is really we're gonna go to a paper 0:14:55.040 --> 0:14:58.640 free environment. Now, Uh, there's gonna be a need for 0:14:58.840 --> 0:15:01.320 tools and solutions to be able to have that all 0:15:01.400 --> 0:15:04.720 digital right, to be able to have a collaborative experience 0:15:04.760 --> 0:15:06.680 with an advisor and investor. But we're going to get there, 0:15:06.720 --> 0:15:08.880 all right. Just got about twenty seconds here at Metaverse. 0:15:08.920 --> 0:15:11.160 Do you think about that? Is that something realistically that 0:15:11.240 --> 0:15:13.760 everybody has to be talking about, Maybe not for tomorrow 0:15:13.840 --> 0:15:16.400 or five years from now, but maybe a little bit longer. Well, look, 0:15:16.400 --> 0:15:20.240 we're doing this interview with one person remote, one person here. Uh, 0:15:20.400 --> 0:15:22.960 that's a very uh, and we've gone there during the 0:15:23.000 --> 0:15:27.000 pandemic where clients are on zooms, we are able to 0:15:27.080 --> 0:15:29.400 instead of flying all over the country, we're able to 0:15:29.440 --> 0:15:33.360 meet with our clients on a very regular basis. But 0:15:33.680 --> 0:15:36.720 nothing replaces an in person meeting either. But you're right, 0:15:36.800 --> 0:15:38.440 but it does give us another tool to play with 0:15:38.520 --> 0:15:40.720 Ben Harrison over at B and Y mel and Persian. 0:15:40.760 --> 0:15:46.480 Thank you. This is Bloomberg Business Week with Carol Masser 0:15:46.720 --> 0:15:51.480 and Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio. It 0:15:51.600 --> 0:15:53.640 is all about the FED. You know that the latest 0:15:53.680 --> 0:15:56.560 decision now nearly two and a half years old, and 0:15:56.720 --> 0:15:59.520 you can find this next story online of Bloomberg dot 0:15:59.560 --> 0:16:02.960 COM's Business Week, also on the Bloomberg terminal. Tim It's 0:16:03.040 --> 0:16:06.120 how the FED has tried to protect main Street main 0:16:06.160 --> 0:16:09.400 Street specifically, and now how everyone as a result may suffer. 0:16:09.840 --> 0:16:12.880 Ed Harrison, his senior markets editor at Bloomberg News. He 0:16:12.960 --> 0:16:15.840 joins us on the phone from Washington. Check out his story. 0:16:15.920 --> 0:16:18.880 It's available on the Bloomberg Terminal and at bloomberg dot 0:16:18.920 --> 0:16:21.040 com slash Business this week, it's called the FED tried 0:16:21.040 --> 0:16:23.920 to protect main Street. Now everyone may suffer? And I 0:16:23.920 --> 0:16:27.560 want to I want to start with the the headline there. 0:16:28.480 --> 0:16:30.640 What do you how historically has the FED tried to 0:16:30.640 --> 0:16:33.680 protect main Street and why is that not necessarily working 0:16:33.760 --> 0:16:37.720 right now? Well, actually, the Fed hasn't and and by 0:16:37.760 --> 0:16:40.800 the way, thank you Caroline, Tim, good to talk to you. Um, 0:16:41.440 --> 0:16:44.680 they haven't really tried historically to protect the main Street, 0:16:44.720 --> 0:16:47.360 at least for the last forty years. What happened is 0:16:47.480 --> 0:16:51.120 that in the seventies, when we had our last inflation shot, 0:16:51.640 --> 0:16:55.800 there was a dreaded wage price spiral that people believe 0:16:56.280 --> 0:16:58.640 Paul Vocal was able to stamp out. And since then 0:16:59.280 --> 0:17:04.240 they've sort of, you know, preemptively hyped rates at the 0:17:04.480 --> 0:17:06.479 end of every cycle, and so people who are just 0:17:06.600 --> 0:17:09.840 getting onto the employment ladder at the end of cycles 0:17:10.320 --> 0:17:14.520 were stopped out, you know, they were left behind. And 0:17:14.560 --> 0:17:16.760 then we had the Great Financial Crisis, which was a 0:17:16.800 --> 0:17:20.240 trauma for everyone, and we had to bailout for Wall Streels. 0:17:20.480 --> 0:17:23.040 So there was a sense in which the FED actually 0:17:23.240 --> 0:17:27.040 wasn't working for the Main Street And they've changed that 0:17:27.119 --> 0:17:30.440 approach to become more inclusive. Their staff and has become 0:17:30.440 --> 0:17:34.640 more inclusive. They've tried to lengthen business cycles on purpose 0:17:34.920 --> 0:17:38.080 in order to make it more inclusive, but unfortunately they 0:17:38.160 --> 0:17:44.000 ran into the buzz Stoll called inflation. Right, So, I mean, 0:17:44.040 --> 0:17:46.040 I love how your story reads, to be quite honest 0:17:46.080 --> 0:17:48.399 with you. You know that in terms of what happened 0:17:48.440 --> 0:17:51.080 during the financial crisis, right, I mean Wall Street was 0:17:51.119 --> 0:17:53.280 protected for the most part, minus leaning in a few 0:17:53.280 --> 0:17:57.240 other firms. Um, but Main Street felt it felt it 0:17:57.320 --> 0:18:00.240 so severely. Uh, it does feel, you know a bit 0:18:00.240 --> 0:18:02.800 different this time around. How do we need to kind 0:18:02.800 --> 0:18:05.320 of think about maybe the fet approach right now? And 0:18:05.320 --> 0:18:07.439 we just got a lot from J. Powell and Company, 0:18:07.520 --> 0:18:10.920 you know, just a few hours ago. Yeah, I think 0:18:11.000 --> 0:18:14.959 his overriding message is this is that if we don't 0:18:15.040 --> 0:18:20.040 get inflation under control, it doesn't benefit anyone, especially those 0:18:20.080 --> 0:18:23.760 who are most been because not only is it hurting 0:18:23.800 --> 0:18:26.800 people in terms of not being able to afford things, 0:18:27.280 --> 0:18:31.200 but it also means that the cycle can't be longer. 0:18:31.240 --> 0:18:35.119 You can't have a long business cycle that is more inclusive, 0:18:35.160 --> 0:18:38.919 that gets the participation rate up. So if he's to 0:18:38.960 --> 0:18:42.400 achieve what he needs to do, he needs to act now, 0:18:43.080 --> 0:18:46.800 uh so that in the future this won't be a problem. 0:18:46.880 --> 0:18:49.760 So to what extent does the FET actually have the 0:18:49.760 --> 0:18:53.399 tools to do that? These are famously blunt instruments, And 0:18:53.440 --> 0:18:56.440 as we heard from Doug Cioca over at Cavar Capital Partners, 0:18:56.480 --> 0:19:00.240 given the supply constraints that are leading to high inflation, 0:19:00.400 --> 0:19:03.359 we're helping contribute to high inflation when it comes to 0:19:03.359 --> 0:19:05.680 the supply chain, when it comes to high energy prices. 0:19:06.560 --> 0:19:10.720 What power does the FED have to do this? Well, 0:19:10.880 --> 0:19:13.280 it was interesting to listen to j Pal talk about it. 0:19:13.400 --> 0:19:16.520 He was quite honest and say that they don't have 0:19:17.040 --> 0:19:19.640 h all of the tools. You know, obviously they can't 0:19:19.640 --> 0:19:22.720 work against the flash shop. They can't make more computer 0:19:22.840 --> 0:19:27.040 chips around clogged four, they can't pump more oil. Uh. 0:19:27.200 --> 0:19:29.720 The only thing they can do in this particular instance 0:19:29.920 --> 0:19:35.520 is get uh supply and and demand and balanced by 0:19:35.840 --> 0:19:40.000 crimping demand. That's essentially what they're doing. And he's soft 0:19:40.040 --> 0:19:44.719 pedaling that policy by saying, look, we have the Jolkes 0:19:44.800 --> 0:19:48.600 data which says that there are so many um jobs 0:19:48.640 --> 0:19:51.040 out there that we can just reduce the number of 0:19:51.200 --> 0:19:55.159 jobs that the supply of jobs then as opposed to 0:19:55.160 --> 0:19:58.040 the supply of labor, then we can get a nice 0:19:58.080 --> 0:20:00.240 balance there. I thought that was a very good earner 0:20:00.280 --> 0:20:03.880 praise on his part. Is that something we can do though, 0:20:03.920 --> 0:20:07.919 because I mean from the perspective of of you know, 0:20:08.520 --> 0:20:10.879 interest rates and how I'm going to fill up my 0:20:10.880 --> 0:20:14.480 my tank right to what extent do higher interest rates 0:20:14.680 --> 0:20:18.080 lead me to not drive somewhere or lead me to 0:20:18.480 --> 0:20:22.920 not use energy in my home? Well, I think it's 0:20:22.920 --> 0:20:25.520 gonna be very difficult, because, you know, it sounds good 0:20:25.520 --> 0:20:27.399 at the aggregate level, but when you break it down 0:20:27.440 --> 0:20:32.280 to where people actually need jobs and where companies need employees, uh, 0:20:32.640 --> 0:20:34.480 you get you get a breakdown there. And I think 0:20:34.480 --> 0:20:38.119 that we're already seeing on two fronts a breakdown in 0:20:38.200 --> 0:20:42.120 terms of employment and in terms of business investments. If 0:20:42.160 --> 0:20:46.280 you looked at the business investment numbers that came out. Uh, 0:20:46.320 --> 0:20:50.240 the d DP now figure went down to zero point 0:20:50.320 --> 0:20:54.159 zero percent, showing that they're looking for a contraction in 0:20:54.200 --> 0:20:58.159 business investment in Q two and then jobless claims are 0:20:58.560 --> 0:21:02.720 are up forty five thousands on average over the last 0:21:02.760 --> 0:21:07.240 two months. Yeah, I think it's really significant. You know, 0:21:07.240 --> 0:21:09.359 I was thinking about that in terms of here's our 0:21:09.359 --> 0:21:14.159 supply chains, our problems right ed and you know, many 0:21:14.200 --> 0:21:17.439