Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg
Speaker 1: Surveillance Podcast. Catch us live weekdays at seven am Eastern
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Speaker 2: Joining us now for an extended conversation like we should
Speaker 2: have for three hours is way Lee of black Rock.
Speaker 2: I don't know where to begin, so Wayley, let's start.
Speaker 2: Since we're on a Pacific rim with Ross Matheson. You
Speaker 2: were acclaimed in your China from mathematic skills as a kid.
Speaker 2: You're a student of the Pacific Rim. I don't buy
Speaker 2: the idea of doom and gloom on China. There's a
Speaker 2: resiliency there. Do you detect a political an American phrase,
Speaker 2: come to Jesus where they're going to be able to
Speaker 2: assert five percent growth?
Speaker 3: As a mathematician, one number that jumped out to me
Speaker 3: just yesterday is ten year yields in China just all
Speaker 3: time low below two percent. That is really remarkable. That
Speaker 3: speaks to markets not feeling confident about China exiting deflationary environment.
Speaker 3: That speaks to markets being quite worried about jeffentification of China.
Speaker 3: So structurally there are concerns around Chinese growth.
Speaker 2: Is there an embedded deflationary vector right now? I mean,
Speaker 2: is it Clement Atlee nineteen thirties, Great Britain. Is it
Speaker 2: a deflation that we saw with Japan over the years.
Speaker 3: Well, if we look at the consumers in China, they
Speaker 3: are still quite muted and really quite depressed. There has
Speaker 3: been effort to stimulate consumption, but that remains below trend
Speaker 3: coming out of the pandemic and looking ahead well talking
Speaker 3: about environment where exports could also come under pressure. So
Speaker 3: this is why we're less positive over the longer term
Speaker 3: around where China is heading towards. We're expecting three percent
Speaker 3: growth by the end of the ROWS, which is quite
Speaker 3: a bit lower than five percent for this year, and
Speaker 3: maybe they're looking at five percent for next year. We're
Speaker 3: not expecting We're not expecting that given the uncertainty around it.
Speaker 3: But in a very very near term valuation remains quite attractive.
Speaker 3: We have events coming up around the corner, the Central
Speaker 3: Economic Working Conference and the National People's Congresses Wow, so
Speaker 3: all of that could provide kind of near term stimulous hopes,
Speaker 3: but really the longer term story is really not that encouraging.
Speaker 4: I would say, is China is the government of China?
Speaker 4: Are they to what extent are they concerned about really,
Speaker 4: I guess isolating themselves from the rest of the world.
Speaker 4: Did they see that as a material risk? Because that
Speaker 4: seems to be how it's drifting.
Speaker 3: I think geopolitical fragmentation has been happening, has been deepening,
Speaker 3: and is expected to continue going forward. So that's part
Speaker 3: of a kind of China isolating or building spheres of
Speaker 3: influence around themselves. But it's also generally the spheres of
Speaker 3: influence between US and China moving further apart, which is
Speaker 3: why geopolitical fragmentation is a key megaphones that Blackrock has identified.
Speaker 3: There is inflationary and that is why we are positioning
Speaker 3: our strategic portfolios for high for longer.
Speaker 5: I want you to come back.
Speaker 2: Let's start with this question, when should kids start learning calculus?
Speaker 2: I mean, you know, in America used to be learned
Speaker 2: at twenty two and then I was twenty. Now we
Speaker 2: got kids freshman year in high school having this you know,
Speaker 2: the product rule crammed down their throat.
Speaker 5: When should kids start learning calculus? Way?
Speaker 3: I honestly do not remember when I started learning calculus
Speaker 3: maybe in junior high school.
Speaker 5: Junior high school. That's sick.
Speaker 6: I was good in school.
Speaker 2: Did you drop that in your interview with black Rock?
Speaker 5: Listen?
Speaker 7: Seventh grade?
Speaker 3: But the point is I don't use calculus these days
Speaker 3: in my day to day job. So what exactly is
Speaker 3: going to future proof the future generation in terms of
Speaker 3: the things that they learn in school? Right? As AI
Speaker 3: changes the nature of Johnson.
Speaker 2: She gets right in the AI chat, I give it
Speaker 2: up Fallsweti and Tom Kenyan.
Speaker 5: Where there's Wayley of Blackrock to say she's.
Speaker 2: Chief, a global chief investment strategist, barely describe your duties.
Speaker 5: Look for her on LinkedIn.
Speaker 2: I think of Urine, Timerate, Fidelity, and Wayy at black Rock,
Speaker 2: like not just you know, hey, this is you know
Speaker 2: what I had for lunch, but like really serious investment stuff.
Speaker 2: Here's a drill. I'm calling it the great bull market
Speaker 2: or this great bull market we're in. There's off the
Speaker 2: December eighteen low up one hundred and forty five percent, SPX,
Speaker 2: off the October twenty two low up whatever it is,
Speaker 2: forty sixty percent. The risk of extrapolation now is front
Speaker 2: and center.
Speaker 5: How do you handle the emotion that we want.
Speaker 2: To extrapolate this good equity news with the reality of
Speaker 2: taking measured risk.
Speaker 3: I think the big picture right now is not one
Speaker 3: of mean revert. It's one of transformation. We're talking about
Speaker 3: in an environment where actually the key focus ought to be
Speaker 3: where the longer term trend is heading towards, rather than
Speaker 3: where the fluctuations are around what used to be a
Speaker 3: stable longer term trend. And that is also why we
Speaker 3: see ten year yields being so much more sensitive to
Speaker 3: months to months data releases, because we're now it is
Speaker 3: almost unprecedented environment where longer term trend is actually shifting.
Speaker 3: That means mean revert does not quite apply when we're
Speaker 3: talking about transformation and moving targets. And that also means
Speaker 3: if we think something is expensive, they can get more expensive.
Speaker 3: If we think something is concentrated, they can get more
Speaker 3: concentrated if there are good reasons for that to continue.
Speaker 2: How did you respond to what David Costin did over
Speaker 2: at Gulben Sachs modeling out since we've come so far
Speaker 2: so fast, our central tendency is a low single digit outcome.
Speaker 2: Heated complaints from the academic math community on how they
Speaker 2: went about that study, Are you that cautious on where
Speaker 2: the terminal value is of equity prices?
Speaker 3: We actually took an inspiration from that analysis to try
Speaker 3: to understand if the measure of concentration, which is to
Speaker 3: look at the market cup of the biggest the company
Speaker 3: versus the seventy fifth percent hel and look at that
Speaker 3: racial right by that measure, US Aquady market is close
Speaker 3: to the most concentrated in almost one hundred years, and
Speaker 3: we try to understand, okay, that concentration, does it have
Speaker 3: significant varying on subsequent market return over twelve months, over
Speaker 3: ten years. The verdict of the analysis inspired by the
Speaker 3: by the by the research a piece of research that
Speaker 3: you're referring to, is that over the very near term horizon,
Speaker 3: let's say investing for twenty twenty five, concentration doesn't have
Speaker 3: significant bearing. And over the longer term, in a mean
Speaker 3: revert environment, then it has significant baring. But we're not
Speaker 3: in the mean revert environment. So we continue to think
Speaker 3: that Erniest can can come through.
Speaker 6: For next year.
Speaker 3: We're looking at high single digit return expectation, and there
Speaker 3: is reason in the context of US exceptionalism for US
Speaker 3: to lean more into US equities, which is what we're
Speaker 3: doing for this outlook.
Speaker 2: Wait, I should buy my first share.
Speaker 4: I think you should judge to this market book.
Speaker 3: We should keep you one hundred shares exactly, two or
Speaker 3: three shares.
Speaker 7: Of that exactly.
Speaker 4: Welly, So it's been a month since the US presidential election.
Speaker 4: We now know we have a Republican in the White House,
Speaker 4: and we now have a pretty republic controlled Congress, orthough
Speaker 4: some you know, very tightly controlled. Did that change the
Speaker 4: outlook for you folks at black Rock did when you
Speaker 4: woke up from the election the next day, did you
Speaker 4: materially change your outlook on asset allocation, stocks, bonds, US,
Speaker 4: non US Did it change your outlook?
Speaker 3: I think in equities America first policies would support US
Speaker 3: at the expense of potentially global equities. We actually use
Speaker 3: UK equity allocation to fund the further upgrade of you
Speaker 3: as equities. This is what we did for this outlook.
Speaker 3: But in government bonds, actually the reverse is true. Given
Speaker 3: the fiscal trajectory that we now expect from well from
Speaker 3: the Trump administration, but also specifically in the in the US,
Speaker 3: we think that there is room for term premiere to
Speaker 3: come back even more in US government bonds, which is
Speaker 3: why we prefer likes of guilts over US long duration.
Speaker 3: So there is a different reader cross in risk assets
Speaker 3: and government bonds with the policy is that we now expect.
Speaker 3: The last thing I would say credit is an interesting one.
Speaker 3: Spread USIG spread is the titles since the early two thousand,
Speaker 3: but that in part reflects number one, reasonably good fundamentals
Speaker 3: of credit and corporates and number two worsening indebtedness for
Speaker 3: US government. Right, so when we look at it from
Speaker 3: a whole income total yield perspective, quality income is still
Speaker 3: a very interesting theme that we want to play.
Speaker 4: Are you concerned about here in the United States continued deficits,
Speaker 4: continued growth in the debt. There doesn't seem to be
Speaker 4: any political will to address that at all, and it
Speaker 4: may just be just don't worry about it.
Speaker 6: How do you guys think about that?
Speaker 3: I would say two things. First, it is not a
Speaker 3: US specific phenomenon, and I think what's happening in France
Speaker 3: really shows that this is really across the boat. A
Speaker 3: higher indebtedness is really a phenomenon across the boat. Number two,
Speaker 3: we are risks on for now, we're dialing up risk
Speaker 3: taking but great reprise think is the key sign post
Speaker 3: that we're monitoring as we look to dynamically dow up
Speaker 3: and dow down risk taking through the course of twenty
Speaker 3: twenty five. So that's definitely something that we pay a
Speaker 3: lot of attention to. Related to Tariff's announcement as well,
Speaker 3: because higher tariffs, higher inflation, higher rate expectations, so all
Speaker 3: of that is really under risk monitor as we keep
Speaker 3: risk for now.
Speaker 2: One final question, you were sitting in your classes, I
Speaker 2: believe at Cambridge, and you ran through productivity. The great
Speaker 2: myst call this year has been American economic growth resilient
Speaker 2: nominal GDP. Everybody got the growthiness wrong. What portion of
Speaker 2: productivity is the why we're achieving right now?
Speaker 3: I think US growth has been very resilient because this
Speaker 3: is not your typical cycle. I think there are some
Speaker 3: force alarms, especially during some looking at the sign rule,
Speaker 3: the typical recession signal not working because we are in
Speaker 3: this environment of transformation rather than standard cycle. Right. There
Speaker 3: are multiple disconnects that points to this is not your
Speaker 3: typical business cycle. We're looking at an environment where the
Speaker 3: fat is cutting rates when financial conditions are very very easy.
Speaker 3: Those traditional recession signals not working. So all of that
Speaker 3: means that we cannot use the old playbook to understand
Speaker 3: where economy is, but also to kind of think about
Speaker 3: us our location cover.
Speaker 2: So at the margin, can you buy MEG seven if
Speaker 2: we're not mean reverting and if we're going to a
Speaker 2: new way lead terminal value? Can you add the mag
Speaker 2: seven This morning.
Speaker 3: Mag seven multiple is thirty times, and at the beginning
Speaker 3: of twenty twenty two it was thirty five times. At
Speaker 3: the inception of chat GBT late twenty twenty two it
Speaker 3: was twenty five times. It is expensive, but it's not
Speaker 3: extremely expensive. There are good reasons earnings momentum that supports
Speaker 3: those valuations. You know, like me revert. If we're talking
Speaker 3: about an index that has become more growthy in nature
Speaker 3: over time, then that the meme needs to reflect the
Speaker 3: more growthy nature of the of the benchmark. So we
Speaker 3: continue to like Max seven. But we have broughtn out
Speaker 3: how we play the AI theme because we expect that
Speaker 3: to have broader read across to how economy. So public market,
Speaker 3: private market, we are building the transformation, we're financing the transformation.
Speaker 5: Really, thank you so much.
Speaker 1: With black record, you're listening to the Bloomberg Surveillance Podcast.
Speaker 1: Catch us live weekday afternoons from seven to ten am.
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Speaker 2: Return to the Litmus paper of the global system. We
Speaker 2: welcome out of you on YouTube on your communite quickly
Speaker 2: with George Sarahs of Deutsche Bank. George, whither the dollar
Speaker 2: in your view for not like the year end outlook,
Speaker 2: but the bet and the dollar. Is it a resilient
Speaker 2: dollar and can you model out dollar strength?
Speaker 8: Hi, morning, Tom.
Speaker 9: So it really all is about the policy mix over
Speaker 9: the next few years. That's how I think we think
Speaker 9: about it, the combination of fiscal and trade policy. And
Speaker 9: the bottom line is, if you think about what is priced,
Speaker 9: you're still not pricing an aggressive mix of physcal easing
Speaker 9: or protection is trade, which is what President Trump communicated
Speaker 9: in the election campaign. So we still see the market
Speaker 9: as pricing on a scale of one to ten, roughly
Speaker 9: a three out of ten. And therefore there is more
Speaker 9: potential I think for the dollar to strengthen over the
Speaker 9: next few months as we price more in.
Speaker 8: But over the.
Speaker 9: Medium term it really boils down to whether the rest
Speaker 9: of the world can solved some of these structural issues
Speaker 9: which are weighing on both China and Europe. And the
Speaker 9: longer these things are delayed, I think the stronger.
Speaker 8: The dollar will remain over the longer term.
Speaker 4: George, we were just trying to get getting update from
Speaker 4: from one of our reporters in Paris about the uncertainty there,
Speaker 4: the political uncertainty in France. I'm looking at the euro
Speaker 4: here as a proxy. We're now below one spot zero five.
Speaker 4: It is parody something that you think is possible for
Speaker 4: the Euro with the dollar.
Speaker 8: That's our forecast for the Euro next year.
Speaker 9: I think depending on what happens both out of Europe
Speaker 9: and the US, there are even scenarios where we could
Speaker 9: go below parity towards ninety five for example. I would
Speaker 9: say the key variable at the moment that is impacting
Speaker 9: the market and the economy is uncertainty.
Speaker 8: Especially in Europe.
Speaker 9: There are very high levels of uncertainty across the board,
Speaker 9: both in terms of the political outcomes, and we're seeing
Speaker 9: the negotiations around the budget in France, around global foreign policy,
Speaker 9: and the difficulty with uncertainties, it's very hard to model
Speaker 9: the economic impact but it's very clear that this is
Speaker 9: showing up, and I think this is one reason why
Speaker 9: the European economy is underperforming.
Speaker 8: For example, is.
Speaker 4: There a credible barecase for the US dollar. I'm hard
Speaker 4: pressed to find one, So.
Speaker 8: I would say there is.
Speaker 9: There always has to be, because if there's no way
Speaker 9: for something to go down, it must mean we're not
Speaker 9: doing our job properly in terms of thinking about the scenarios.
Speaker 8: So here are the two downside risks for the dollar.
Speaker 8: The first one.
Speaker 9: Would be if we are wrong about the fiscal policy
Speaker 9: outlook and we get a material fiscal tightening in the US,
Speaker 9: whether that is due to an inability to agree to something,
Speaker 9: although presumably that probability is low given you've had a
Speaker 9: red sweet but if you have fiscal tightening, that would
Speaker 9: lead to slower growth and the more duble shredd and
Speaker 9: I think the dollar would go down.
Speaker 8: That would be one scenario.
Speaker 9: The second would be what I would call institutional instability,
Speaker 9: a challenge of the stability of the institutions in the US.
Speaker 9: You would see that, for example, if FED independence was challenged.
Speaker 9: That would be one that would certainly hit the dollar.
Speaker 9: And I think one reason the dollar is actually strong
Speaker 9: is that the market is seeing institutional virginity outside of
Speaker 9: the US, seeing it in France, seeing it in Korea.
Speaker 9: And I think that's a key driver over recent resive dollars.
Speaker 2: Strand you tell me about the opportunity in Canada. They
Speaker 2: got a president who's unloved, they got the teriff.
Speaker 5: Wherees George, You're writing about Canada?
Speaker 2: How do you profit from week Canada? Now? Do you
Speaker 2: go Looney or do you go Canada? Remind me what's
Speaker 2: the take that Deutsche Bank has there.
Speaker 9: I think Canada is going to be an interesting test
Speaker 9: case as far as President Trump's tariff policies go. So
Speaker 9: we did see Canada being lumped together with Mexico in
Speaker 9: the post in a social media post president Trump mate
Speaker 9: just a few days ago, highlighting immigration and the fentanyl epidemic. Now,
Speaker 9: the interesting thing is when you compare the flow of
Speaker 9: immigration and fentanyl in Canada to the US and Mexico
Speaker 9: to the US, the orders of magnitude are immensely different.
Speaker 8: Now, that would.
Speaker 9: Suggest the odds of an aggressive tariff policy towards Canada
Speaker 9: are quite low. The market is indeed pricing that, and
Speaker 9: that is our assumption, which is why we have this
Speaker 9: view that Canada should be outperforming currencies such as the
Speaker 9: Europe for example. But let's see. I think if come
Speaker 9: January twentieth and there's no tariffs on Canada, we'll be fine.
Speaker 8: But there is still a very high degree of uncertainty
Speaker 8: on that front as well.
Speaker 2: George, too short a conversation, George servellos at Deutsche Bank.
Speaker 2: We need a longer conversation, soonest here is with Deutsche
Speaker 2: Bank and foreign exchange of civilies.
Speaker 1: This is the Bloomberg Surveillance Podcast. Listen live each weekday
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Speaker 1: Just Say Alexa playing Bloomberg eleven thirty.
Speaker 2: Bohen Haynes in Florida has all sorts of abilities, and
Speaker 2: one of them is a more conservative path.
Speaker 5: Joining us this morning is Jay Bowen here, too short
Speaker 5: a visit.
Speaker 2: You are basically not taking in the alternative investment kool aid.
Speaker 2: To me, this is a story for next year. Where's
Speaker 2: private equity? Where's private credit going to be? Twenty four
Speaker 2: months thirty six months from now?
Speaker 7: Yeah, with our approach. It's somewhat we say that we're
Speaker 7: unconventionally conventional. With our largest client, the Tampa Fire Police Fund.
Speaker 7: We just start our fifty first year. We've never owned
Speaker 7: private equity, private or the latest whip, so you.
Speaker 5: Got a fifty position in MEG seven.
Speaker 7: Now I will say this, which is important. One of
Speaker 7: our largest holdings and we decided this along several years ago.
Speaker 7: You can play these markets in the public markets. One
Speaker 7: of our largest holdings is Blacksman, which is the as
Speaker 7: you know, the largest private equity firm in the world,
Speaker 7: so we can we can play these markets in a
Speaker 7: very efficient liquid way, including real estate, also without having
Speaker 7: to go into the more risky corners of those areas.
Speaker 4: Tommy's you can probably tell from Jay's accent University of
Speaker 4: North Carolina at Chapel.
Speaker 5: Hill that this is Merry Christmas.
Speaker 4: Pool seems another Carolina guy coverman in here. Oh boy, Jay,
Speaker 4: talk to us about your work with the Tampa Firefighters
Speaker 4: and police.
Speaker 6: You mentioned you.
Speaker 4: Manage your pensions fund for fifty years.
Speaker 7: Correct. My father forged a relationship in nineteen seventy four.
Speaker 7: The firm was founded in North Carolina. We were in
Speaker 7: Atlanta forever now we're caught the COVID wave and then
Speaker 7: the of the Jacksville area. And yeah, it's just a
Speaker 7: very high quality, long term approach and it's proven to
Speaker 7: be The model has proven to be quite successful. And
Speaker 7: every year that goes by, we're able to show another
Speaker 7: set of twenty year rolling data, which they will do you.
Speaker 2: That's short term right here. What are you doing on
Speaker 2: a twenty year roll? Are you doing in a sixty
Speaker 2: forty split? What is the pixie dust you're doing? Like
Speaker 2: to beat USPX is at the goal.
Speaker 7: We are certainly oriented towards equities in common stocks specifically,
Speaker 7: typically we're allowed to invest sixty five percent of the
Speaker 7: portfolio in common stocks on a cost basis, not on
Speaker 7: a market value basis. So in a bull market that's
Speaker 7: going to move up close to seventy seventy five maybe.
Speaker 7: And the balance is that the bond side of the
Speaker 7: portfolio is strictly for income instability.
Speaker 5: We don't trade the bond. We gotta interrupt.
Speaker 2: You're running to find benefit program for a public sector
Speaker 2: pension fund and you're popping sixty five seventy seventy five equities.
Speaker 7: Correct, And we've been the sole manager for fifty years
Speaker 7: and according to all the public fund.
Speaker 2: Got the number one performing define benefit program in the country.
Speaker 7: That's what they say for one years through fifty years.
Speaker 7: So if you believe the database, what.
Speaker 2: Have you done since December of twenty eighteen? Our theme
Speaker 2: to the end of the year. Here is this great
Speaker 2: bull market. What are you up from Christmas Eve twenty eighteen?
Speaker 2: Is you got that number in your head?
Speaker 7: Don't I don't have that number in my head. I've
Speaker 7: got the thirty I've got the thirty one separate twenty
Speaker 7: year rolling increments, and I had that.
Speaker 4: So what's what's it? What's a type of stock you
Speaker 4: guys like to own?
Speaker 8: Are you?
Speaker 2: Do?
Speaker 4: You have a technology bent here? You're owning corporate? Corporate's financials.
Speaker 6: How do you guys do?
Speaker 7: It's top down in thematic we're trying to get ahead
Speaker 7: of these trends. Well currently one of our big trends
Speaker 7: we like finding these we call them technology companies disguised
Speaker 7: as industrial companies, companies like Eating and Corning and Teledigm.
Speaker 7: You know, you might think, oh wow, these are somewhat honey.
Speaker 7: Well they might be industrial, but they're very sophisticated from
Speaker 7: a technology standpoint. They're providing, they're helping electrify and digitize
Speaker 7: the industrial base. There's a lot of demand and massive
Speaker 7: tailwinds in that area that we see going forward.
Speaker 4: Do you guys have a value? Let me ask you
Speaker 4: put it to this. What is your valuation crates here?
Speaker 4: How do you think about valuation? Because you could look
Speaker 4: at some of these names, whether they're Max seven, we're
Speaker 4: just some other technology names and really have to have
Speaker 4: some gumption here to buy some of these things.
Speaker 6: How do you think about valuation?
Speaker 5: Correct?
Speaker 7: And that has really changed over the last particularly the
Speaker 7: last fifteen years or so, where it's a much more
Speaker 7: dynamic type of approach. We've always looked ahead. We're not
Speaker 7: really that concerned with current earnings. With our long term approach.
Speaker 7: We have the luxury and they've given us. The board
Speaker 7: down there has given us the luxury of really looking out.
Speaker 7: So a company that might look expensive on a current basis,
Speaker 7: if we look out and feel like the tailwinds are
Speaker 7: there and the trees are there, we're willing to pay
Speaker 7: up a little.
Speaker 5: Bit for it.
Speaker 2: Tell me about Florida, I mean I make jokes about
Speaker 2: It's not funny. Tampa's stadium was destroyed they're going to
Speaker 2: play in the Yankee spring straining park. I guess they're
Speaker 2: hurricanes in the Florida economy. Where is it all two
Speaker 2: years from now?
Speaker 7: For her?
Speaker 5: I mean, are we done with?
Speaker 2: Are we done building six thousand square foot houses.
Speaker 5: On the water that get blown over?
Speaker 7: I think that that trend is going to be curtailed
Speaker 7: somewhat because of the insurance situation down there, which is
Speaker 7: is changing as we as we speak. But it's still
Speaker 7: a Look, it's still a high growth market state from
Speaker 7: an economic policy standpoint. Is I think going to continue
Speaker 7: to attract, but I think that the certainly it's going
Speaker 7: to moderate.
Speaker 5: Now you got to come back.
Speaker 2: I mean, I can't tell you, folks how unusual this
Speaker 2: conversation is with Jay Bowen, but I just want to know.
Speaker 2: I mean, I'm certain every meal you've ever taken with
Speaker 2: the Tampa Union has been at burn Steakhouse. Are you
Speaker 2: eating in the bar or do you go into one
Speaker 2: of the back rooms when you get to eat?
Speaker 7: Because the wine list is in a phone book?
Speaker 5: Have you been in? Then?
Speaker 7: I get lost in that phone book and I never
Speaker 7: it's time to go.
Speaker 2: Have they ever taken you downstairs to the wine cellar
Speaker 2: of Burned Steakhouse, Tampa, Florida.
Speaker 7: Yeah, but they maybe put a blindfold only.
Speaker 2: They took me down there once, paul It's like acres.
Speaker 2: It's it's unreal.
Speaker 5: I eat in the barn.
Speaker 2: I try to eat right directly across the bar, and
Speaker 2: I get better service there, I think. But it's great.
Speaker 2: Is it written into the bow and Haynes agreement that
Speaker 2: you only can dine at Burns Steakhouse in Tampa.
Speaker 7: You've given me the idea of the day.
Speaker 2: I think if Paula says, road trip to Tampa Bay
Speaker 2: will talk to the firefighters. Jay Bowen, thank you so much,
Speaker 2: and I really exceptional day.
Speaker 1: Here for news, this is the Bloomberg Surveillance Podcast. Listen
Speaker 1: live each weekday starting at seven am Eastern on Applecarplay
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Speaker 2: Our newspapers, it's a Lisa Mantale hour. She's not seen
Speaker 2: Mawana too, either of I. What do you got, Lisa?
Speaker 10: I know I definitely not this weekend. This let's see
Speaker 10: where I want to start, Okay, so we'll start with
Speaker 10: the Washington Post. They're talking about Starbucks and Neslie. They're
Speaker 10: facing some scrutiny. This is because of labor practices over
Speaker 10: in China. They're saying coffee farms in Starbucks, Nestlie's supply
Speaker 10: chains and China they're not living up to ethical standards.
Speaker 6: This is according to report by China Labor Watch.
Speaker 10: They said they're using kids as workers, they're making workers
Speaker 10: work excessive hours, different safety standards. So it's an investigation
Speaker 10: that covered twenty six farms, but it really starts to
Speaker 10: show how the challenges of these big companies are facing
Speaker 10: monitoring labor costs, labor in China. Both companies do did
Speaker 10: say that they pledged to investigate further, but it's just
Speaker 10: something going on now that that they're starting to become
Speaker 10: more aware of all mentions.
Speaker 2: His driver, I had a driver this morning, Bentley in
Speaker 2: the garage and and he said he's just back from Thailand,
Speaker 2: and he says, do Americans understand those people are making twelve.
Speaker 5: Dollars a day?
Speaker 2: I mean the labor Steve Roach called it the labor arbitrage.
Speaker 4: And so this is all price of coffee is up
Speaker 4: fifty eight percent year to date. So it's been Yeah,
Speaker 4: it's amazing. How does Starbucks manage they Well, what's your
Speaker 4: daughter's lattelet?
Speaker 6: He runs me about eight bucks now exactly for public coffee.
Speaker 6: Well she gets the big one, of course, the ven.
Speaker 5: Pittsburgh Martini's cost eight bucks.
Speaker 3: Exactly.
Speaker 8: That's the world we live in.
Speaker 6: I need a Martinia.
Speaker 10: I would just say we got I might have to
Speaker 10: ask Baltoonis about the next story. But meme coins, they
Speaker 10: are having a moment financial time, saying you can thank
Speaker 10: President Electrum Donald Trump for this. So these are tokens
Speaker 10: that are representing online viral moments, things like the euthanized
Speaker 10: gray squirrel, like the pygmy hippopotamus, the cartoon dog. They've
Speaker 10: all exploded in value since last month's US presidential election.
Speaker 10: More established meme coins like doge coin, Tom's favorite, they've
Speaker 10: outperformed Bitcoin over the past month. They've even been joined
Speaker 10: by a group of new coins. But critics are saying,
Speaker 10: you know what, meme coins nothing more than this entertaining asset. Yeah,
Speaker 10: they say they're reminiscent of the craze from NFTs during.
Speaker 6: The crypto crypto bubble of twenty twenty one.
Speaker 4: But so traders I guess they're betting that the Trump
Speaker 4: administration will usher in more crypto friendly attitudes and regulations
Speaker 4: in Washington. I guess that's the fun metal play behind it,
Speaker 4: the reason.
Speaker 6: No other reason.
Speaker 5: Comment, everyone knows.
Speaker 4: Yeah, so just those kids. You can have fun with that.
Speaker 4: Speculat all you want.
Speaker 3: Have fun.
Speaker 6: Okay, we'll go to sports now.
Speaker 10: Okay, Juan Soto, you know they've been, he's been having
Speaker 10: talked with everyone. His agent is sick from the Yankees.
Speaker 10: His agent is saying he's starting to eliminate teams from
Speaker 10: those negotiations. Okay, all right, So who is he met?
Speaker 10: He's met with the Yankees, right, the Mets, Los Angeles, Dodgers,
Speaker 10: Boston Red Sox, Toronto Blue Jo.
Speaker 5: He just cut that ship.
Speaker 6: That's where it is.
Speaker 2: We'll give him Plymouth Rock.
Speaker 5: Good morning ninety nine, Boston.
Speaker 2: Let's give one Soto Plymouth Rock showing the Red Sox.
Speaker 5: What do you got?
Speaker 6: What's the updated?
Speaker 10: So his agent is just saying jan is a methodical thinker.
Speaker 10: He hasn't said yet, but he rejected those who say
Speaker 10: high spending teams like the Yankees and Dodgers are buying championships.
Speaker 10: So he rejected that offer, but sodo, what's the history?
Speaker 10: So he turned down four hundred and forty million dollars
Speaker 10: fifteen year offer from Washington back in twenty twenty two
Speaker 10: that moved him to the Nationals to trade him to
Speaker 10: San Diego, which dealt him to the Yankees last December.
Speaker 10: So he's looking for money, so who's going to give
Speaker 10: it to him?
Speaker 6: Will? But he started to eliminate some of those.
Speaker 5: I think that's what it comes down here.
Speaker 2: There was a picture named Snell who reminds me Red
Speaker 2: Sox fans of bruce Hurst from years ago were when
Speaker 2: he shows up, he's the best picture in baseball. And
Speaker 2: he Snell just joined the Dodgers.
Speaker 6: Yep.
Speaker 5: So for Snell and Soto to be back with the
Speaker 5: Dodgers as sick, yep, it's gonna be Who's he? Do
Speaker 5: we know he's eliminated?
Speaker 6: No, he won't say, but he's starting to eliminate.
Speaker 4: Oh boy, what I've here on sports Raiser, We'll here's
Speaker 4: something next week and I'll.
Speaker 6: Defer to ari on that he knows all that stuff.
Speaker 2: But okay, well, official surveillance team coverage, probably a remote
Speaker 2: in Boston coming from Plymouth Rocket to give me get
Speaker 2: to one soda.
Speaker 5: What do you got?
Speaker 6: All right? Last one?
Speaker 10: You can now get a pizza and a wedding dress
Speaker 10: delivered all in one.
Speaker 6: The reason why David's.
Speaker 10: Bridle teamed up with door Dash. So now door Dash
Speaker 10: is delivering bridal dresses in under an hour if you
Speaker 10: can buy it or not.
Speaker 6: But the company really needs it. I mean, you think
Speaker 6: about it. They filed for bankruptcy twice.
Speaker 10: But what they thought They thought it would be big
Speaker 10: because they did test runs with like accessories like necklaces
Speaker 10: shape where they thought that would be the hot thing,
Speaker 10: but they said, no, it's actually the dresses that women
Speaker 10: are ordering, not just wedding dresses, but you know, you
Speaker 10: have the prom dresses, you have, you know, the bride'smaid dresses,
Speaker 10: all those kind of things. So now this is becoming,
Speaker 10: I guess, the hot new thing.
Speaker 4: So here's the demo. I think Lisa two thirds of
Speaker 4: brides between the ages of twenty seven and twenty eight,
Speaker 4: which is the key demographic for David's Bridle, used last
Speaker 4: mile delivery service via apps on a regular basis.
Speaker 6: So that makes sense.
Speaker 8: Yeah, that's shut.
Speaker 4: That down in my household, you too quick? Yeah, that's
Speaker 4: never I will never pay for that.
Speaker 6: Well, I know they tried the door dash with the McDonald's.
Speaker 6: Doesn't work either, because I'll dress.
Speaker 4: Yeah, that's something, all right.
Speaker 6: It depends on the price of it.
Speaker 10: I don't know, but yeah, so that's something new retail
Speaker 10: file door dash getting into that.
Speaker 2: Soo the Lisa Matteo or Thank You So Much Newspapers
Speaker 2: with Alisa Matteo.
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