WEBVTT - Global Markets, Fixed Income, Rebuilding Puerto Rico 0:00:02.640 --> 0:00:05.320 Welcome to the Bloomberg Penl Podcast. I'm Paul swing you, 0:00:05.360 --> 0:00:07.680 along with my co host Lisa Brahma wits each day 0:00:07.720 --> 0:00:10.240 we bring you the most noteworthy and useful interviews for 0:00:10.280 --> 0:00:12.520 you and your money. Whether at the grocery store or 0:00:12.560 --> 0:00:15.480 the trading floor. Find a Bloomberg Penl podcast on Apple 0:00:15.520 --> 0:00:17.959 podcast or wherever you listen to podcasts, as well as 0:00:17.960 --> 0:00:23.280 at Bloomberg dot com. Right now, let's switch gears. We'll 0:00:23.280 --> 0:00:25.320 take a look at what some of those global trade 0:00:25.400 --> 0:00:29.360 issues are doing for markets. Who welcome Louis lou portfolio manager, 0:00:29.400 --> 0:00:33.479 member of the Emerging Markets Investment Committee at Brandi's Investment Partners. 0:00:33.640 --> 0:00:35.640 It joins us on the phone from San Diego. Louis, 0:00:35.680 --> 0:00:37.760 thanks so much for joining us. You know, just those 0:00:37.760 --> 0:00:40.520 headlines from the President, you know, talking about global trade 0:00:40.560 --> 0:00:44.240 and what's going on with global trade. Clearly the uncertainties 0:00:44.280 --> 0:00:48.040 created by the uncertainty of global trade really weighing on markets. 0:00:48.040 --> 0:00:50.600 How are you kind of factoring that into your investment outlook? 0:00:52.240 --> 0:00:55.320 Thanks Paul for having me on Good Morning everybody. UM, 0:00:55.360 --> 0:00:57.320 just to kind of set the stage. You know, we're 0:00:57.760 --> 0:01:01.080 long term value investors at Brands and our approach is 0:01:01.080 --> 0:01:04.480 really to focus on the fundamental economic worth of the 0:01:04.560 --> 0:01:08.000 companies that we invest in. UH, and we call that 0:01:08.080 --> 0:01:11.200 the intrinsic value of these companies, and our approach is 0:01:11.280 --> 0:01:14.040 to purchase them at a at an attractive discount of 0:01:14.280 --> 0:01:17.520 the intrinsic values. And within that context, UM, a lot 0:01:17.560 --> 0:01:20.800 of these geopolitical events, trade events that you mentioned, have 0:01:21.000 --> 0:01:25.520 created numerous opportunities, whether it's UM, the US China trade 0:01:25.560 --> 0:01:28.760 frictions that we're seeing, or the renegotiation on NAFTA or 0:01:28.760 --> 0:01:33.639 even Brexit. I mean, these have created opportunities whereas stocks 0:01:33.800 --> 0:01:37.600 are selling attractive discounts to their long term fair value, 0:01:38.120 --> 0:01:40.240 can you give us can you give us some examples? 0:01:41.480 --> 0:01:44.400 So some of those examples would be UM. You know, 0:01:44.440 --> 0:01:48.440 the Mexican real estate companies or the fevers that we 0:01:48.480 --> 0:01:52.840 call them, have been selling a big discounts, large dividend yields. UM. 0:01:52.920 --> 0:01:55.880 You know, some of those companies that have been affected 0:01:55.920 --> 0:02:00.240 would be technology companies UM in in China. UM. Those 0:02:00.280 --> 0:02:02.160 are some of the things that we've looked at. UM. 0:02:02.160 --> 0:02:05.559 There's also a lot of other examples. But really, UM, Lisa, 0:02:05.680 --> 0:02:08.320 the key thing to bear in mind is we're not 0:02:08.360 --> 0:02:12.679 trying to predict particular outcomes. We don't think that anybody can. 0:02:12.800 --> 0:02:16.560 I think our approach is really too buy uh when 0:02:16.680 --> 0:02:19.640 we feel that a worst case scenario has been priced in. UM. 0:02:19.760 --> 0:02:22.000 Some days, you know, these stocks will trade as if 0:02:22.040 --> 0:02:23.600 there's never going to be a trade deal. And then 0:02:23.600 --> 0:02:26.840 on other days the market is euphoric and it's pricing 0:02:26.880 --> 0:02:31.240 in a very good outcome. And on those occasions we're 0:02:31.240 --> 0:02:33.880 gonna be lightening up the position or we stopped buying. 0:02:33.919 --> 0:02:36.520 But if a worst case scenario is priced in, then 0:02:36.560 --> 0:02:39.000 we're active in the market. UM using a flexible and 0:02:39.080 --> 0:02:42.560 nimble approach to investing in these companies. So all of 0:02:42.600 --> 0:02:45.519 a sudden that you recently took a trip business trip 0:02:45.560 --> 0:02:48.320 through Asia over the STUMMAC, it's a sense of so 0:02:48.440 --> 0:02:51.920 you'r key takeaways there because clearly you know that the 0:02:52.040 --> 0:02:54.560 uncertainties of trade between the US and China, you know, 0:02:54.639 --> 0:02:59.120 really key to I think investors psyches now. Yes, UM, 0:02:59.160 --> 0:03:01.880 I was in seven cities in Asia a couple of 0:03:01.919 --> 0:03:04.480 months ago, and I think the striking thing to notice that, 0:03:04.840 --> 0:03:07.400 you know, if you go to mainland China, whether it's Shanghai, 0:03:07.400 --> 0:03:10.560 Beijing or Shansin, you know, the the admustry is very different. 0:03:10.840 --> 0:03:13.280 I think there's a feeling of calm, there's a feeling 0:03:13.280 --> 0:03:16.440 of you know that the economy has the capability to 0:03:16.520 --> 0:03:20.200 withstand some of these external shocks. UM. So the feeling 0:03:20.200 --> 0:03:22.080 that we get from mainland China is very different. But 0:03:22.120 --> 0:03:25.400 across the border in Hong Kong, UM, my witness firsthand 0:03:26.400 --> 0:03:28.720 some of the protests that have been taking place and 0:03:28.880 --> 0:03:32.560 the disruptions to normal business operations um. And just kind 0:03:32.560 --> 0:03:35.720 of to Lesa's point earlier, this has given way to 0:03:35.800 --> 0:03:39.320 some opportunities in the retail industry. Uh, some of the 0:03:39.400 --> 0:03:43.360 banks in Hong Kong, you know, showing very good value. Um. 0:03:43.440 --> 0:03:46.960 And we're not exactly sure how the protests will end 0:03:47.280 --> 0:03:49.400 or how it's going to conclude, but if you look 0:03:49.400 --> 0:03:52.560 at the history, these protests have been episodic. They come 0:03:52.560 --> 0:03:55.720 and go. Uh, there's going to be some kind of 0:03:55.760 --> 0:03:59.280 resolution over you know, the shorter or medium term. And 0:03:59.840 --> 0:04:02.720 you know that has created opportunities as well. You know, 0:04:03.000 --> 0:04:04.920 I'm wondering if there has to be a base case 0:04:04.960 --> 0:04:08.600 when it comes to some of these geopolitical occurrences when 0:04:08.600 --> 0:04:11.920 you're making decisions about whether something is undervalued or overvalued, 0:04:11.920 --> 0:04:14.240 because you know, I mean, at any given point, the 0:04:14.920 --> 0:04:20.040 the outcome could be completely bifurcated and lead to completely 0:04:20.040 --> 0:04:23.120 bifurcated market results. So how what what is your sort 0:04:23.120 --> 0:04:27.320 of base case for the next twelve months. Yeah, I 0:04:27.360 --> 0:04:31.080 think the base case is that the US China relationship, 0:04:31.240 --> 0:04:33.640 you know, whether it's the economic relationship, whether it's the 0:04:33.680 --> 0:04:37.800 trade relationship, is too important for the global economy for 0:04:37.880 --> 0:04:41.240 there to be you know, a sustained adverse outcome, right, 0:04:41.279 --> 0:04:43.680 so you can see that, uh, you know, particularly for 0:04:43.760 --> 0:04:46.719 the US point of view. You know, the terrorists starting 0:04:46.760 --> 0:04:48.760 to have a negative impact. So the trade war has 0:04:48.800 --> 0:04:52.200 kind of shifted to other areas right looking at UM, 0:04:52.240 --> 0:04:55.120 you know, American capital going into Chinese capital markets, things 0:04:55.160 --> 0:04:59.680 like that. So the exact form of these tensions can change, 0:05:00.080 --> 0:05:03.599 the shape can shift. But then the longer term base 0:05:03.640 --> 0:05:07.360 case over the next twelve months is that the relationship 0:05:07.400 --> 0:05:10.080 is too important. There will be some kind of resolution 0:05:10.279 --> 0:05:13.960 or de escalation, And that is kind of the base 0:05:14.000 --> 0:05:17.080 case that we use UM to value some of the companies. 0:05:17.120 --> 0:05:20.320 And then if there's a significant down draft or deviation 0:05:20.560 --> 0:05:23.080 that is priced in that we don't think will hold 0:05:23.120 --> 0:05:25.800 over the next three or five years, then that would 0:05:25.800 --> 0:05:28.640 be a buying opportunity. Of course, you know, our approach 0:05:29.000 --> 0:05:33.440 would allow for some of these estimates uh to change, 0:05:33.600 --> 0:05:37.000 you know, if if the information and situation changes. Is dynamic, 0:05:37.080 --> 0:05:40.000 So we're not holding to any one particular scenario, but 0:05:40.400 --> 0:05:44.200 trying to have a flexible approach and the factor in 0:05:44.240 --> 0:05:46.840 some of the you know, any lasting developments into our 0:05:46.839 --> 0:05:48.760 base case. So it's interesting because you say that this 0:05:48.839 --> 0:05:50.680 sort of base cases is that you know, we do 0:05:50.720 --> 0:05:53.960 get something. I do wonder though, what we're seeing right 0:05:54.040 --> 0:05:57.960 now is the lack of certainty itself weighing on economic 0:05:58.160 --> 0:06:03.760 growth and activity. How do you factor that in? You know, 0:06:03.839 --> 0:06:07.680 it's it's really kind of the deviation from uh, you know, 0:06:07.720 --> 0:06:11.080 the base rate of growth. Right, so China should grow 0:06:11.120 --> 0:06:14.039 at about six percent maybe that decelleries by twenty five 0:06:14.160 --> 0:06:17.000 or fifty basis points uh in the next twelve months, 0:06:17.000 --> 0:06:19.400 and in the US maybe trend growth rate it's kind 0:06:19.400 --> 0:06:23.760 of around two percent. So there's certain base case estimates 0:06:23.800 --> 0:06:26.799 that uh, you know, the markets are looking for, and 0:06:27.200 --> 0:06:29.840 you know, um, some of these events have a very 0:06:29.880 --> 0:06:32.880 short term negative impact on some of that, uh, some 0:06:32.960 --> 0:06:35.560 of the trend growth rates. Right, So the base case 0:06:35.560 --> 0:06:38.560 hasn't really changed it's just that um there's a lot 0:06:38.600 --> 0:06:43.400 of short term volatility and geopolitical events that can cause 0:06:43.720 --> 0:06:48.080 oscillations around that base case, and it's these oscillations that 0:06:48.160 --> 0:06:52.680 create market volatility that give rise to opportunity. Louis Loud, 0:06:52.720 --> 0:06:54.440 thank you so much for being with us. Louis law 0:06:54.520 --> 0:06:57.000 is protfolio manager and member of the Emerging markets investment 0:06:57.040 --> 0:07:00.880 community at Brandis Investment Partners in Love San Diego, or 0:07:00.960 --> 0:07:02.800 I do not think that they are preparing for in 0:07:02.839 --> 0:07:22.840 our easter like we are here. Let's talk retirement. Let's 0:07:22.840 --> 0:07:25.400 talk about whether you want to do it and whether 0:07:25.440 --> 0:07:28.160 you can do it. Ever, let's speak with Josh Jelinski. 0:07:28.240 --> 0:07:30.920 He's president of Jelinski Advisory Group, joining us here in 0:07:30.920 --> 0:07:34.080 our Bloomberg Interactive Broker Studio. You have a new book, 0:07:34.120 --> 0:07:38.200 Retirement reality Check. I'm just gonna go out on a 0:07:38.280 --> 0:07:40.840 limb here and assume it's not a reality check that 0:07:40.880 --> 0:07:43.600 you've got plenty and you're great. Well, it could be both. 0:07:43.840 --> 0:07:45.440 You could have a lot and not know what to 0:07:45.480 --> 0:07:48.520 do with it. You could have a significant amount saved 0:07:48.640 --> 0:07:51.120 and not of a tax plan, not of a strategy 0:07:51.160 --> 0:07:53.760 to convert your assets to income when you're retired. So 0:07:53.800 --> 0:07:57.120 there's the reality check for those who have money, and 0:07:57.160 --> 0:07:59.760 then there's the reality check for those who have not 0:08:00.000 --> 0:08:02.280 saved you know, ten to fifteen percent and their four 0:08:02.440 --> 0:08:05.320 one k or who have come in a lot of 0:08:05.320 --> 0:08:07.360 money due to maybe a sale of a business, but 0:08:07.720 --> 0:08:10.720 there is a savings dearth Fidelity came out with a report, 0:08:10.760 --> 0:08:14.520 you know, the average four one case fifty grand to 0:08:14.600 --> 0:08:18.120 their name, which is shocked. It is so Josh, you know, 0:08:18.200 --> 0:08:20.440 I have my children earning the workforce right now, and 0:08:20.440 --> 0:08:22.840 the I think the probably hopefully the best piece of 0:08:22.880 --> 0:08:25.720 advice I gave them was four oh one k started 0:08:25.760 --> 0:08:30.600 today maximizer contributions. What percentage of people would you say 0:08:30.600 --> 0:08:35.240 are really not prepared for retirement financially? I would say 0:08:35.240 --> 0:08:39.040 about yeah, because I saw that statistic recently that a 0:08:39.080 --> 0:08:41.360 big percentage of Americans could not come up with a 0:08:41.360 --> 0:08:44.960 four million sorry four dollar just emergencies or you know, 0:08:45.000 --> 0:08:47.160 a thousand dollars for emergency, so that I think it 0:08:47.240 --> 0:08:51.599 was like percent of Americans. Yeah. So what is the 0:08:51.640 --> 0:08:53.640 most important advice you have for people as they think 0:08:53.679 --> 0:08:56.520 about retirement, you know, whether they're young or whether they're 0:08:56.520 --> 0:08:59.600 may be closer to retirement. Number one, just start save 0:08:59.679 --> 0:09:01.680 ten to fifteen percent of your paycheck. A lot of 0:09:01.679 --> 0:09:05.040 people they stop at fifty and they go, well, I 0:09:05.080 --> 0:09:07.080 have fifty grand. I'll never amount to anything, so I'm 0:09:07.080 --> 0:09:09.760 not gonna save anything. And if you save, you know, 0:09:09.800 --> 0:09:12.680 tend to fifteen percent of your pay now. We we 0:09:12.679 --> 0:09:16.040 we do have a section for millennials, people in their thirties, twenties, 0:09:16.520 --> 0:09:19.960 forties to start now and then to do it in 0:09:20.000 --> 0:09:22.080 a tax smart manner. In the book, we have eleven 0:09:22.160 --> 0:09:25.600 tax smart tips for how to capitalize on the Trump 0:09:25.640 --> 0:09:28.520 tax plan and other things. I'd like to be a 0:09:28.520 --> 0:09:30.800 pain in the neck, So I'm gonna I'm gonna take 0:09:30.840 --> 0:09:33.160 the other side of this. There are all these people 0:09:33.240 --> 0:09:37.040 screaming that too many people over in China save. People 0:09:37.040 --> 0:09:38.839 are talking about the savings rate, and how could be 0:09:38.880 --> 0:09:41.680 a problem if people aren't actually putting their money into 0:09:41.679 --> 0:09:44.440 the economy, and if they're not necessarily investing in themselves. 0:09:44.480 --> 0:09:47.560 And I'm not talking about incurring more student debt, but 0:09:47.760 --> 0:09:50.520 making life easier. For example, if you've got children's that 0:09:50.600 --> 0:09:52.960 you can continue to work even if it means less 0:09:53.000 --> 0:09:55.800 income in that short period. How do you sort of 0:09:55.880 --> 0:09:59.400 square those sort of conflicting feelings of sort of the 0:09:59.480 --> 0:10:03.200 dynamis of the economy in the near term versus being 0:10:03.240 --> 0:10:05.240 prudent for the long term. Well that's great. We actually 0:10:05.240 --> 0:10:09.320 have a macro economic approach to people's money where we 0:10:09.400 --> 0:10:13.480 treat money less like a personal checkbook and more like 0:10:13.640 --> 0:10:17.000 a macro economy, and that we have three key focuses. 0:10:17.240 --> 0:10:20.600 We want to focus on asset protection, savings, and growth. 0:10:20.640 --> 0:10:23.559 But yeah, there is a conflicting thing where when you're 0:10:23.559 --> 0:10:25.920 looking at the macro economic data, we want people to 0:10:25.920 --> 0:10:29.880 be spending their money, but then in reality people have 0:10:30.080 --> 0:10:32.200 to avoid buying stupid stuff. I mean, if you think 0:10:32.240 --> 0:10:36.880 about today, people have Netflix subscriptions and cable bills, they 0:10:36.920 --> 0:10:39.800 have cell phone bills and they I mean, and they 0:10:39.840 --> 0:10:42.360 have this subscription and that you know, they got to 0:10:42.400 --> 0:10:44.000 cut the cord though. I mean, it's good for the 0:10:44.040 --> 0:10:47.920 macro economy, bad for the micro economy. So what you know, 0:10:47.960 --> 0:10:51.600 people are are living longer these days, Uh Josh, So 0:10:52.000 --> 0:10:54.079 do they need they I guess they did. They need 0:10:54.080 --> 0:10:55.600 more money. So I mean, is there a sense of 0:10:55.640 --> 0:10:57.920 kind of what people need today for a decent retirement 0:10:58.000 --> 0:11:01.880 versus maybe a generation or two ago. I think people 0:11:02.040 --> 0:11:06.240 a generation or two ago spent a lot less, so 0:11:06.280 --> 0:11:09.640 they need needed less to retire. They also had pensions. 0:11:09.679 --> 0:11:12.760 A whole section on the book in my book Retirement 0:11:12.760 --> 0:11:16.600 Reality Check is on how to convert your assets to income. 0:11:17.280 --> 0:11:18.960 And we have a lot of people who don't have 0:11:19.000 --> 0:11:22.480 a pension, so they need greater assets because they have 0:11:22.559 --> 0:11:25.520 to convert their four one case too, to a pension 0:11:25.640 --> 0:11:30.600 like stream of investment income when they retire. Definitely, what 0:11:30.800 --> 0:11:33.280 age do you think people really ought to retire at 0:11:33.280 --> 0:11:37.880 this point or expect to retire barring some boon from 0:11:37.920 --> 0:11:42.080 a wonderful period in their business life. Maybe, uh, I 0:11:42.120 --> 0:11:45.440 don't know, sixties, seven, seventy. But more and more people 0:11:45.440 --> 0:11:50.719 are working longer. I mean, you know, you know, more 0:11:50.720 --> 0:11:53.880 and more people are practicing the phrase welcome to Walmart. 0:11:53.960 --> 0:11:56.080 They're finding joy a lot of people. I mean, if 0:11:56.120 --> 0:12:00.400 you look philosophically, even back in Biblical days, you know, 0:12:00.440 --> 0:12:04.400 the Bible mentions no mention of the concept retirement. That's 0:12:04.440 --> 0:12:09.280 because everybody was dead at seventy so and social Security 0:12:09.320 --> 0:12:11.480 came out when the average life expectancy was I think 0:12:11.600 --> 0:12:16.280 like fifty two, and so you were typically like in 0:12:16.360 --> 0:12:20.520 today's age, it would be eighty. If we went back 0:12:20.520 --> 0:12:24.480 to the original concept of the social safety net. So 0:12:24.640 --> 0:12:27.400 the social safety net, I mean, what percentage of the 0:12:27.440 --> 0:12:30.800 US population you think relies on that? Probably too much. 0:12:31.559 --> 0:12:34.960 I think more and more retirees are solely I'm I'm 0:12:35.000 --> 0:12:38.199 I'm hearing people you know, called my radio show because 0:12:38.200 --> 0:12:40.480 we have a show, and they I mean, there's like 0:12:40.640 --> 0:12:44.240 I would say, are reliant on social security. Boomers did 0:12:44.280 --> 0:12:48.439 a very poor job saving for retirement. And and that's 0:12:48.800 --> 0:12:52.760 the importance of a retirement reality check, so you can 0:12:52.800 --> 0:12:56.640 spend all your money without going broke in retirement. Interesting. 0:12:56.720 --> 0:12:59.760 Josh Jelinski, thanks so much for joining us. Josh's President 0:13:00.040 --> 0:13:02.720 Jelinski Advisory Group, joining us here in our Bloomberg Interactor 0:13:02.800 --> 0:13:06.560 Broker studio talking about his new book, Retirement Reality Check. 0:13:06.880 --> 0:13:10.200 And look, it's so important to save earlier. I think 0:13:10.200 --> 0:13:12.840 that I'm coming at this. I always was, you know, 0:13:12.920 --> 0:13:15.680 putting stuff aside and preparing for the future, and I 0:13:15.720 --> 0:13:18.120 think it's important to do it. I think there needs 0:13:18.120 --> 0:13:20.320 to be a balance though too right, I mean, but 0:13:20.440 --> 0:13:22.719 I don't I guess that most people don't, do you 0:13:22.720 --> 0:13:26.200 know everybody. I'm sure everybody has their their different financial position. 0:13:26.240 --> 0:13:28.160 But I think that again, as I tried to you know, 0:13:28.640 --> 0:13:31.240 impart to my children is nder the workforce is the 0:13:31.280 --> 0:13:34.240 importance of saving for retirement four win k H. And 0:13:34.280 --> 0:13:37.640 how it's such a powerful savings tool that a lot 0:13:37.679 --> 0:13:40.120 of corporations corporate America in the absence of a defined 0:13:40.200 --> 0:13:43.240 pension plan. Uh, it's really the way you have to go. 0:13:43.360 --> 0:13:45.320 So very interesting, Josh, thanks so much for joining us 0:14:01.160 --> 0:14:04.120 well here at our Bloomberg World headquarters in New York City. 0:14:04.160 --> 0:14:07.559 Today we are hosting the Bloomberg Canadian Fixed Income Conference, 0:14:08.040 --> 0:14:12.160 bringing together leaders and financiers looking at the Canadian market. 0:14:12.400 --> 0:14:14.960 Joining us today is Rod Phillips, the Finance miss Minister 0:14:15.120 --> 0:14:17.440 for Ontario, Canada, joining us here on a Bloomberg in 0:14:17.520 --> 0:14:20.560 Active broker studio. Rod, thanks so much for being with us. 0:14:20.920 --> 0:14:24.320 Give us a sense of you know, our financial you 0:14:24.360 --> 0:14:26.520 know our economy here in the US. You know it's 0:14:26.640 --> 0:14:29.280 chugging along pretty well to two and a half percent, 0:14:29.320 --> 0:14:31.680 but slowing. Give us a sense kind of the economic 0:14:31.720 --> 0:14:35.520 backdrop facing Canada these days. Paul Lisa, thanks for having me. 0:14:35.600 --> 0:14:39.480 It's great to be on Bloomberg. You know, Ontario and 0:14:39.640 --> 0:14:45.160 Canada generally are our significant connection in terms of economically 0:14:45.200 --> 0:14:48.560 used the United States. So so as your economy goes that, 0:14:48.560 --> 0:14:52.360 that certainly supports growth. For for Ontario. A lot of 0:14:52.360 --> 0:14:55.920 people don't realize, but nineteen States were the number one 0:14:55.920 --> 0:14:58.880 trading partner. So so when we see the kind of 0:14:59.000 --> 0:15:01.600 hot economy having the United States, we're seeing that replicated. 0:15:02.000 --> 0:15:05.160 Uh in Ontario. We have, you know, our unemployment rate 0:15:05.480 --> 0:15:08.080 that just the last month was fivete which by our 0:15:08.080 --> 0:15:11.640 standards is fairly low. We have two thirty thousand jobs 0:15:11.640 --> 0:15:14.760 since last June year ago June that we're created. So 0:15:14.760 --> 0:15:18.040 so you're seeing a growing economy, particularly um hot from 0:15:18.040 --> 0:15:20.120 a development point of view. Uh. You know, we were 0:15:20.200 --> 0:15:25.600 four cranes across North America. The construction cranes are in 0:15:25.600 --> 0:15:27.840 the g t A. So a lot of that kind 0:15:27.840 --> 0:15:29.840 of growth and development comes a lot from a lot 0:15:29.880 --> 0:15:32.960 of very positive immigration statistics we have. So g t A. 0:15:33.040 --> 0:15:36.440 I'm going to just infer is the general Toronto area? 0:15:36.680 --> 0:15:39.000 Is that correct? The great there we go? Not in 0:15:39.000 --> 0:15:42.120 general the Greater Toronto area. I'm wondering about Toronto at 0:15:42.160 --> 0:15:44.480 the housing market in particular, because there's been a lot 0:15:44.560 --> 0:15:47.720 written about how high prices had gotten and how people 0:15:47.760 --> 0:15:50.360 were getting priced out of the region. Can you tell 0:15:50.440 --> 0:15:52.360 us a little bit about where we are. We have 0:15:52.440 --> 0:15:55.320 seen a little bit of a resurgence there with respect 0:15:55.440 --> 0:15:58.720 to some of your measures to discourage foreigners from just 0:15:58.760 --> 0:16:02.000 buying for investment. You know, there's no question affordability had 0:16:02.000 --> 0:16:05.040 become an issue in the Greater Toronto area. We've brought 0:16:05.040 --> 0:16:08.520 in some policies to to free up the capacity to develop, 0:16:08.560 --> 0:16:12.160 obviously being sensitive about environmental concerns and otherwise, uh, some 0:16:12.240 --> 0:16:14.120 of the some of the measures that both the federal 0:16:14.160 --> 0:16:17.280 government had taken in the previous government to to uh, 0:16:17.320 --> 0:16:19.440 you know, to limit that kind of growth. Some of 0:16:19.520 --> 0:16:21.640 some of them been helpful, some have gotten in the 0:16:21.640 --> 0:16:23.760 way of greater supply. We really see this as a 0:16:23.800 --> 0:16:27.000 supply issue, and so so you know, we've been trying 0:16:27.040 --> 0:16:31.600 to to encourage about somewhere around. Of all the immigrants 0:16:31.720 --> 0:16:35.360 that come to UH, to Canada, come to Ontario, and 0:16:35.400 --> 0:16:37.760 the biggest portion of those come to the Greater Toronto area. 0:16:38.040 --> 0:16:40.200 UM So that's fantastic from an economic point of view 0:16:40.200 --> 0:16:42.600 in terms of giving us a great base to grow 0:16:42.640 --> 0:16:45.960 the economy from. But but you know, keeping housing affordable 0:16:46.080 --> 0:16:47.800 is one of the things that we're really focused on. 0:16:47.840 --> 0:16:51.160 How much pushback have you gotten from residents in Toronto 0:16:51.200 --> 0:16:53.160 with the development, because this is always the push pull 0:16:53.200 --> 0:16:56.960 in cities, right, don't over develop us, don't crowd our schools, 0:16:57.080 --> 0:17:00.000 and yet housing is unaffordable, so what are you gonna do? Yeah, 0:17:00.080 --> 0:17:03.320 it is always that tension. Everybody always wants to have 0:17:03.360 --> 0:17:06.359 the last new house in a particular neighborhood. And and uh, 0:17:06.400 --> 0:17:08.640 but but I think this is a This is an 0:17:08.720 --> 0:17:11.680 area of our country that has has grown dramatically because 0:17:11.720 --> 0:17:15.919 we've been fairly effective at at integrating newcomers into into 0:17:16.240 --> 0:17:19.639 into the economy and otherwise. Um again that you know, 0:17:19.720 --> 0:17:23.000 as long as there's jobs and economic opportunity, UM it is, 0:17:23.359 --> 0:17:26.159 it's it's just net positive for most people. But listen, 0:17:26.160 --> 0:17:28.199 we are We've got ninety billion dollars for spending on 0:17:28.200 --> 0:17:31.600 transit and transportation infrastructure. You know, that's specifically focused on 0:17:31.680 --> 0:17:34.600 dealing with the congestion that inevitably comes with this. UM. 0:17:34.640 --> 0:17:37.280 We have has had an aggressive policy around making sure 0:17:37.320 --> 0:17:39.359 there's more housing supply. You know, it was an urgent 0:17:39.520 --> 0:17:41.440 need of those things happening. And then when it comes 0:17:41.480 --> 0:17:44.199 to things like education and healthcare, big investments there in 0:17:44.200 --> 0:17:45.840 the tens of billions of dollars to make sure that 0:17:45.880 --> 0:17:49.639 the infrastructures in place. So those immigration statistics quote are 0:17:49.680 --> 0:17:53.199 very interesting to me. How is immigration into Ontario and 0:17:53.320 --> 0:17:55.360 kind of a broadly changed over the last several years 0:17:55.359 --> 0:17:57.680 with the Trump administration and kind of the changing policies 0:17:57.680 --> 0:18:00.879 here in USA. You know, it has UH has definitely 0:18:01.440 --> 0:18:04.080 caused a couple of effects on the in terms of 0:18:04.640 --> 0:18:08.120 the side of terms of refugees. We we had through 0:18:08.160 --> 0:18:11.840 Quebec and through Ontario an increase in people leaving because 0:18:11.880 --> 0:18:14.280 of some of the Trump policies. UM. But I'll say 0:18:14.359 --> 0:18:16.479 also on the side of some of the most skilled 0:18:16.560 --> 0:18:19.760 and valuable immigrants we've we've seen an uptick in terms 0:18:19.760 --> 0:18:22.480 of interest whether it comes to our universities or high 0:18:22.520 --> 0:18:26.000 tech firms. We have quite an AI hub in in Toronto. 0:18:26.080 --> 0:18:28.320 In fact, tomorrow I'm hosting an AI round table with 0:18:28.320 --> 0:18:31.119 a number of local companies here in New York UH 0:18:31.280 --> 0:18:34.960 that that are looking because of our education system, because 0:18:34.960 --> 0:18:37.520 of the number of data scientists we have expanding UH 0:18:37.640 --> 0:18:40.640 the operations they have in Ontario and UH and that 0:18:41.119 --> 0:18:43.600 I think that's about the quality of life that we 0:18:43.640 --> 0:18:46.480 have as well as you know, as having capital markets. 0:18:46.520 --> 0:18:47.800 I mean, as you guys would know Toronto is the 0:18:47.840 --> 0:18:50.680 number two capital market in North America, so there's access 0:18:50.720 --> 0:18:54.240 to capital for a lot of entrepreneurs. Rod Phillips, thank 0:18:54.240 --> 0:18:58.240 you so much for joining usable that I want to 0:18:58.240 --> 0:19:00.600 be called the Honora Police. I think at that of life, right, 0:19:00.640 --> 0:19:03.320 I love that. You love that? Yes? Do you make 0:19:03.359 --> 0:19:06.400 your your family call you the honorable? Only on weekends? 0:19:08.600 --> 0:19:10.600 Do people really call you? Do they call you honorable 0:19:10.640 --> 0:19:14.360 Phillips or honorable Rock? Usually just rot? But but but 0:19:14.640 --> 0:19:16.320 it's you know, it's one of the you know, there's 0:19:16.320 --> 0:19:19.159 there's so many benefits to being in politics. Definitely one 0:19:19.200 --> 0:19:22.280 of them is the title the honorable, the honorable Paul 0:19:22.320 --> 0:19:26.560 Sweeney think it works better than the Honorable Lisa Broadways. 0:19:26.560 --> 0:19:29.600 That does not roll off the tongue at all. Rod Fellows, 0:19:29.600 --> 0:19:32.280 Finance Minister, Ontario, Canada, joining us here in a Bloomberg 0:19:32.320 --> 0:19:34.600 and Act Up broker studio, thank you so much for 0:19:34.920 --> 0:19:51.160 joining us. Let's talk Puerto Rico since this has been 0:19:51.200 --> 0:19:53.920 a hotbed of activity on the investment side over the 0:19:53.960 --> 0:19:56.440 past couple of years as people try to figure out 0:19:56.560 --> 0:20:00.560 now after the hurricane, how rebuilding the island will affect 0:20:00.840 --> 0:20:05.119 its finances. Remember, it did have to file for bankruptcy restructuring. 0:20:05.160 --> 0:20:08.399 Joining us now Ricardo Alvarez Diaz. He is founder and 0:20:08.400 --> 0:20:11.840 principle of Alvarez Diaz and vill Alone. He is based 0:20:11.880 --> 0:20:14.439 in San Juan, Puerto Rico, but he is joining us 0:20:14.440 --> 0:20:17.320 here in our bloom Brignner Active Progress Studios. Ricardo, you 0:20:17.359 --> 0:20:20.320 focus a lot on the rebuilding effort. Just when we 0:20:20.359 --> 0:20:22.639 start with how is it going, Well, it's going a 0:20:22.640 --> 0:20:24.760 lot better than what a lot of people are hearing. 0:20:24.880 --> 0:20:27.960 I mean. The challenge we have, of course is the 0:20:28.160 --> 0:20:30.760 uncertainty of what's going to happen with the funding itself. 0:20:30.800 --> 0:20:34.280 I mean, because we we have been assigned a certain 0:20:34.280 --> 0:20:37.719 amount of funding for the island federal funding sere funding specifically, 0:20:37.760 --> 0:20:41.119 which is a community development block grounds from hot and 0:20:41.240 --> 0:20:45.280 Fema um Um from the hot side. The first trench 0:20:45.359 --> 0:20:47.440 of money has come in and and things are starting 0:20:47.440 --> 0:20:49.800 to move a little fast. But at the same time, 0:20:50.160 --> 0:20:53.119 the reality is that that's one point five billion dollars 0:20:53.160 --> 0:20:55.760 out of out forty two billion dollar promise. So there's 0:20:55.760 --> 0:20:57.800 a lot to we learned. So give us a sense of, 0:20:58.359 --> 0:21:01.639 you know, how far back the island has recovered since 0:21:01.720 --> 0:21:04.439 the hurricanes. Is there's a percentage which just give us 0:21:04.480 --> 0:21:06.240 a sense of how far back it's come and how 0:21:06.320 --> 0:21:09.680 far left it has to go. Well, I would say that, uh, 0:21:09.760 --> 0:21:12.880 eighty five percent has has come back up to where 0:21:12.880 --> 0:21:15.240 we were before the hurricane. And let's not say much 0:21:15.280 --> 0:21:18.040 because we were a challenge before the hurricane when it 0:21:18.040 --> 0:21:21.520 comes to infrastructure. So just because we're there doesn't mean 0:21:21.560 --> 0:21:23.320 that we're great. It just means that we're back to 0:21:23.359 --> 0:21:26.119 where we were. Where we need to focus now is 0:21:26.119 --> 0:21:28.879 where we're going to want to be, and that's where, uh, 0:21:28.960 --> 0:21:33.680 the infrastructure investments on how we planned the next fifteen 0:21:33.720 --> 0:21:35.680 and thirty years of Puerto Rico are going to matter. 0:21:35.760 --> 0:21:38.280 There's a big question mark about who's going to live there, 0:21:38.440 --> 0:21:41.520 and one thing that we kept reading articles about was 0:21:41.560 --> 0:21:44.720 the exodus of people from the island after the hurricane. 0:21:44.800 --> 0:21:47.320 Has that sort of stabilized, you're starting to see population 0:21:47.400 --> 0:21:50.919