1 00:00:00,080 --> 00:00:06,760 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:11,960 --> 00:00:15,560 Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Tom Keene along 3 00:00:15,600 --> 00:00:18,960 Speaker 2: with Paul Sweeney. Join us each day for insight from 4 00:00:18,960 --> 00:00:23,160 Speaker 2: the best in economics, finance, investment, and international relations. You 5 00:00:23,160 --> 00:00:26,520 Speaker 2: can also watch the show live on YouTube. Visit the 6 00:00:26,520 --> 00:00:31,280 Speaker 2: Bloomberg Podcast channel on YouTube to see the show weekday 7 00:00:31,280 --> 00:00:34,320 Speaker 2: mornings from seven to ten am Eastern from our global 8 00:00:34,360 --> 00:00:39,000 Speaker 2: headquarters in New York City. Subscribe to the podcast on Apple, Spotify, 9 00:00:39,360 --> 00:00:42,920 Speaker 2: or anywhere else you listen, and always I'm Bloomberg Radio, 10 00:00:43,080 --> 00:00:47,240 Speaker 2: the Bloomberg Terminal, and the Bloomberg Business App. One of 11 00:00:47,280 --> 00:00:49,400 Speaker 2: the great things I do when I lecture is I 12 00:00:49,479 --> 00:00:54,360 Speaker 2: talk about critical thinking skills. These are developed mostly by 13 00:00:54,400 --> 00:01:00,480 Speaker 2: having a greater sense of correlations and interdependencies between different ideas, 14 00:01:00,880 --> 00:01:01,680 Speaker 2: holding the high. 15 00:01:01,560 --> 00:01:02,960 Speaker 3: Ground on that from B and HY. 16 00:01:03,080 --> 00:01:07,840 Speaker 2: Jeff Reu joins us in studio, usually askanced in London. 17 00:01:07,959 --> 00:01:09,120 Speaker 3: Jeff thrilled to heavy. 18 00:01:09,000 --> 00:01:11,039 Speaker 2: In our studios. This morning way too short. We could 19 00:01:11,080 --> 00:01:13,039 Speaker 2: do an hour which this morning. 20 00:01:13,080 --> 00:01:13,720 Speaker 4: Thanks so much. 21 00:01:14,120 --> 00:01:17,319 Speaker 2: Is the market ahead of the Fed? I've never seen 22 00:01:17,440 --> 00:01:18,720 Speaker 2: such an ex post. 23 00:01:18,680 --> 00:01:20,000 Speaker 3: X into a jumble? 24 00:01:20,760 --> 00:01:27,200 Speaker 2: Is this constructive for markets to have this communicative uncertainty. 25 00:01:27,520 --> 00:01:31,080 Speaker 4: Well, what's constructive for markets might not be as constructive 26 00:01:31,160 --> 00:01:32,920 Speaker 4: for the FED. I think there's a bit of a 27 00:01:32,920 --> 00:01:36,440 Speaker 4: dissonance there, and the fed's message, whatever it is not 28 00:01:36,520 --> 00:01:40,000 Speaker 4: too so. So the fed's priority responsibility almost is not 29 00:01:40,000 --> 00:01:43,480 Speaker 4: to induce panic, and the market should not be going 30 00:01:43,520 --> 00:01:45,399 Speaker 4: into thinking that it can actually drive the FED in 31 00:01:45,440 --> 00:01:47,840 Speaker 4: that direction. So I think now that's where we need 32 00:01:47,880 --> 00:01:51,200 Speaker 4: to draw the fine line tomorrow. But you know, ultimately, 33 00:01:51,400 --> 00:01:53,640 Speaker 4: if you ask me, is pricing a bit too assertive, 34 00:01:53,840 --> 00:01:56,120 Speaker 4: a bit too airing on the side of the hard landing, Yes, 35 00:01:56,120 --> 00:01:59,680 Speaker 4: it is right. So we clearly would be want to 36 00:01:59,680 --> 00:02:01,200 Speaker 4: be on the side of that for the time being. 37 00:02:01,200 --> 00:02:03,040 Speaker 4: And the rest of the world is watching right because 38 00:02:03,480 --> 00:02:06,520 Speaker 4: in the past, if the US, you know, sneezes, the 39 00:02:06,520 --> 00:02:08,440 Speaker 4: world catches a cold. But looking at how other central 40 00:02:08,480 --> 00:02:10,120 Speaker 4: backs are behaving right now, I'm not so sure. 41 00:02:10,840 --> 00:02:11,240 Speaker 3: Jeffrey. 42 00:02:11,280 --> 00:02:14,600 Speaker 5: I know that I was in your shoes years ago. 43 00:02:14,680 --> 00:02:16,680 Speaker 5: I know that your salesforce is running. You are all 44 00:02:16,680 --> 00:02:19,360 Speaker 5: around the United States and this week talking to clients. 45 00:02:19,680 --> 00:02:20,960 Speaker 5: What's your number one message? 46 00:02:21,120 --> 00:02:24,520 Speaker 4: So number one message is, well, firstly, you know, from 47 00:02:24,680 --> 00:02:28,160 Speaker 4: my side of the pond, can a conversation on fiscal 48 00:02:28,240 --> 00:02:31,200 Speaker 4: happen at some point. You know, it's not like in Europe. 49 00:02:31,240 --> 00:02:33,600 Speaker 4: You know, the conversations on fiscal are taking place in 50 00:02:33,639 --> 00:02:36,440 Speaker 4: earnest and in fairness, It's not like you're presenting a 51 00:02:36,440 --> 00:02:39,000 Speaker 4: good example either. But that is the concern because the 52 00:02:39,080 --> 00:02:40,880 Speaker 4: US is the reserve asset at the end of the day, 53 00:02:41,120 --> 00:02:44,440 Speaker 4: and the second side is is so going back to 54 00:02:44,480 --> 00:02:47,000 Speaker 4: the hard landing conversation, how is the economy actually doing? 55 00:02:47,040 --> 00:02:49,840 Speaker 4: And how's business investment doing? You know, how is how 56 00:02:50,720 --> 00:02:55,240 Speaker 4: a household's behaving. I was in a Texas yes, yeah, 57 00:02:55,240 --> 00:02:58,640 Speaker 4: it was my first time there. Yeah, and as far 58 00:02:58,680 --> 00:03:01,240 Speaker 4: as I could tell, again just to speak from personal experience, 59 00:03:01,280 --> 00:03:06,040 Speaker 4: you know that. So clearly a lot going on investment, construction, 60 00:03:06,480 --> 00:03:09,480 Speaker 4: taking advantage you know, of the states and natural resources 61 00:03:09,520 --> 00:03:11,600 Speaker 4: in terms of land in it and the light. So 62 00:03:11,639 --> 00:03:14,200 Speaker 4: you're clearly there, whereas if you look at Europe, you know, 63 00:03:14,240 --> 00:03:16,240 Speaker 4: if you look at you know the investment intent you're 64 00:03:16,280 --> 00:03:19,120 Speaker 4: going on there, you just highlighted some pulling of investment 65 00:03:19,160 --> 00:03:21,880 Speaker 4: or lack of investment you going through, so you can 66 00:03:21,919 --> 00:03:24,280 Speaker 4: see a bit of a divergence. So that begs the 67 00:03:24,360 --> 00:03:26,400 Speaker 4: question if there's that much going on in the US 68 00:03:26,480 --> 00:03:28,160 Speaker 4: right now, wise market pricing and hard landing. 69 00:03:28,240 --> 00:03:30,240 Speaker 3: Okay, it's just I'm going to tear up here. I 70 00:03:30,240 --> 00:03:34,040 Speaker 3: got Jeffrey you in Texas. Where do you go with that? 71 00:03:34,600 --> 00:03:35,040 Speaker 3: Jeff You? 72 00:03:35,360 --> 00:03:39,120 Speaker 2: What does it then say about productivity differentials? Trudeau's flat 73 00:03:39,160 --> 00:03:43,200 Speaker 2: on his back after a disaster in Montreal, Germany's flat. 74 00:03:43,040 --> 00:03:44,560 Speaker 3: On its back, et cetera. 75 00:03:44,640 --> 00:03:47,880 Speaker 2: So I got a labor dynamic, a capital guide dynamic. 76 00:03:48,440 --> 00:03:51,200 Speaker 2: I got total fact or productivity, whatever you want to 77 00:03:51,240 --> 00:03:55,120 Speaker 2: call it. But how do you overlay productivity and the 78 00:03:55,280 --> 00:03:57,120 Speaker 2: confidence to be in the markets? 79 00:03:57,400 --> 00:03:57,680 Speaker 6: US? 80 00:03:57,840 --> 00:04:00,480 Speaker 4: Productivity a right? So if you just do it simple 81 00:04:00,640 --> 00:04:04,280 Speaker 4: equation nominal growth or sorry, so potential growth, of which 82 00:04:04,320 --> 00:04:07,400 Speaker 4: productivity is the key factor, plus demographics plus your inflation 83 00:04:07,440 --> 00:04:08,880 Speaker 4: target is your terminal rate? 84 00:04:08,960 --> 00:04:09,120 Speaker 6: Right? 85 00:04:09,160 --> 00:04:13,640 Speaker 4: Just for bog standard Central Bank US productivity warrants justifies 86 00:04:13,920 --> 00:04:15,600 Speaker 4: us exceptionalism. That's my message. 87 00:04:15,600 --> 00:04:17,400 Speaker 2: Okay, So Chair Jones is a stand for if he 88 00:04:17,440 --> 00:04:19,840 Speaker 2: flies over to your London School of economics, he's got 89 00:04:19,880 --> 00:04:23,320 Speaker 2: to be sharkins in in the bottom line on productivity, 90 00:04:23,440 --> 00:04:25,080 Speaker 2: is America is different? 91 00:04:25,360 --> 00:04:26,760 Speaker 3: Is it just because we don't believe in. 92 00:04:26,720 --> 00:04:31,120 Speaker 2: Austerity with our multi trillion dollar budgets. 93 00:04:30,680 --> 00:04:33,799 Speaker 4: No, because America believes in its people. America has people, 94 00:04:33,800 --> 00:04:35,760 Speaker 4: has the talent, and continues to attract that. That is 95 00:04:35,760 --> 00:04:38,240 Speaker 4: the fundamental difference. Yes, there's a bit of a demographic 96 00:04:38,320 --> 00:04:42,280 Speaker 4: argument there, But how it fosters productivity through innovation, that's 97 00:04:42,400 --> 00:04:44,680 Speaker 4: that's a lesson you badly need to learn. Look at 98 00:04:44,720 --> 00:04:48,680 Speaker 4: the Office Budget Responsibilities report based on the baseline scenario 99 00:04:48,880 --> 00:04:51,159 Speaker 4: right now for UK productivity and this is the power 100 00:04:51,160 --> 00:04:53,800 Speaker 4: of compounding. Right has UK's debt to GDP ratio in 101 00:04:53,839 --> 00:04:56,640 Speaker 4: twenty seventy five at two hundred and seventy percent. If 102 00:04:56,680 --> 00:04:59,440 Speaker 4: you lower the productivity basedline by one percentage point, it 103 00:04:59,480 --> 00:05:01,520 Speaker 4: goes the six one hundred and fifty percent. If you 104 00:05:01,680 --> 00:05:04,479 Speaker 4: increase the productivity baseline by one percent and the baselines 105 00:05:04,480 --> 00:05:05,719 Speaker 4: one and a half so to two and a half, 106 00:05:05,760 --> 00:05:07,800 Speaker 4: which probably the US is not far from, then you 107 00:05:07,839 --> 00:05:10,880 Speaker 4: can keep to GDP ratio below one hundred percent. That's 108 00:05:10,920 --> 00:05:11,960 Speaker 4: what the US has going for. 109 00:05:12,040 --> 00:05:14,160 Speaker 3: It is Stiglit's little g Yeah. 110 00:05:14,200 --> 00:05:18,240 Speaker 2: Stiglan's just screams about growth rate as being the key dynamic. 111 00:05:18,400 --> 00:05:20,320 Speaker 5: Jeffrey, what do you tell our good friends in Texas 112 00:05:20,360 --> 00:05:24,640 Speaker 5: about Europe, Middle East in Africa in terms of opportunities. 113 00:05:24,640 --> 00:05:25,680 Speaker 5: What do you tell our friends. 114 00:05:25,400 --> 00:05:28,640 Speaker 4: In well Europe right now it's you know, I'm struggling 115 00:05:28,680 --> 00:05:30,719 Speaker 4: to get my head around your evaluations in the currency 116 00:05:31,200 --> 00:05:34,479 Speaker 4: and the exchange, in the currency and equity markets. I 117 00:05:34,480 --> 00:05:36,240 Speaker 4: thought the UCB was hawkish last week, you know, to 118 00:05:36,279 --> 00:05:38,240 Speaker 4: be honest, and look at all the bad news and 119 00:05:38,279 --> 00:05:40,320 Speaker 4: in terms of data on the corporate level and an 120 00:05:40,360 --> 00:05:42,880 Speaker 4: aggregate level, why are you still hawkish? And they can say, well, 121 00:05:42,880 --> 00:05:44,599 Speaker 4: we don't have a growth mandate, we're different from the FED. 122 00:05:44,800 --> 00:05:46,880 Speaker 4: Fair enough, right, But then you should take a step 123 00:05:46,920 --> 00:05:50,680 Speaker 4: back look at drag use report, how he highlighted compesitiveist 124 00:05:50,920 --> 00:05:53,920 Speaker 4: issues and the like. So you know that's that really 125 00:05:54,040 --> 00:05:55,720 Speaker 4: is a message that he's trying to hammer home. Can 126 00:05:55,760 --> 00:05:57,960 Speaker 4: you deal with it? You know, So let's see in 127 00:05:58,040 --> 00:06:00,320 Speaker 4: terms of the UK finally getting to some kind of 128 00:06:00,320 --> 00:06:02,760 Speaker 4: political normalcy, I would say, but the budget up ahead 129 00:06:02,800 --> 00:06:05,880 Speaker 4: again focusing on growth and productivity. Middle East. No, to 130 00:06:05,880 --> 00:06:07,840 Speaker 4: be honest, now, that over the last few years has 131 00:06:07,880 --> 00:06:09,960 Speaker 4: been the big change. You know, it's what our clients 132 00:06:10,000 --> 00:06:12,640 Speaker 4: have been highlighting where the opportunity is. You know, there 133 00:06:12,720 --> 00:06:14,560 Speaker 4: is a plan there to boost things. Of course, oil 134 00:06:14,560 --> 00:06:16,680 Speaker 4: price is very much in focus right now, clients are 135 00:06:16,720 --> 00:06:19,599 Speaker 4: looking for proxies, but medium longer term capital flows and 136 00:06:19,600 --> 00:06:21,279 Speaker 4: the Middle East clearly as benefiting. 137 00:06:21,839 --> 00:06:25,840 Speaker 3: Jeffrey, you are on China, so a lot of. 138 00:06:25,800 --> 00:06:28,760 Speaker 4: Clients asking about President She's comments last week. They will 139 00:06:28,839 --> 00:06:31,240 Speaker 4: hit the growth target. Let's just look at simple mathematics, 140 00:06:31,320 --> 00:06:33,279 Speaker 4: right So if you look at the growth data for 141 00:06:33,360 --> 00:06:36,080 Speaker 4: Q one and Q two and probably Q three below 142 00:06:36,560 --> 00:06:39,400 Speaker 4: the target on an annualized basis, then Q four has 143 00:06:39,440 --> 00:06:41,640 Speaker 4: to be strong. We cannot discount that, you know, at 144 00:06:41,640 --> 00:06:44,159 Speaker 4: this point, I think the one thing China from an 145 00:06:44,200 --> 00:06:47,760 Speaker 4: asset allocation basis has going for it is investment relative 146 00:06:47,800 --> 00:06:49,800 Speaker 4: to benchmark is quite low right now. I think at 147 00:06:49,800 --> 00:06:52,440 Speaker 4: this point, especially commodities market less so oil, but maybe 148 00:06:52,480 --> 00:06:57,440 Speaker 4: industrial commodities Aussie dollar, you cannot afford to discount the 149 00:06:57,560 --> 00:07:00,480 Speaker 4: risk of a major boost in Q four. Yes, it's 150 00:07:00,480 --> 00:07:03,080 Speaker 4: probably a tactical plate rather than structuring the same. 151 00:07:03,160 --> 00:07:03,520 Speaker 3: I can't. 152 00:07:03,600 --> 00:07:05,240 Speaker 2: I mean, I don't know how the totalized, folks, but 153 00:07:05,320 --> 00:07:07,039 Speaker 2: I'm in the You can't on this. 154 00:07:07,600 --> 00:07:10,280 Speaker 3: When the facts change, She's going to change. 155 00:07:10,400 --> 00:07:12,960 Speaker 2: I mean, I'm sorry, it's the same old story going 156 00:07:13,000 --> 00:07:15,880 Speaker 2: back and lay they going to have a strategy, But 157 00:07:15,960 --> 00:07:20,600 Speaker 2: would you suggest that Beijing will capitulate to realities allowing 158 00:07:20,600 --> 00:07:22,800 Speaker 2: an FDI, allow an investment. 159 00:07:23,360 --> 00:07:27,240 Speaker 4: So the recent announcement, you know, allowing foreign investment into 160 00:07:27,240 --> 00:07:29,240 Speaker 4: healthcare into China for example. You know that is a 161 00:07:29,280 --> 00:07:31,520 Speaker 4: very large market. So you look at the demographics of 162 00:07:31,680 --> 00:07:35,160 Speaker 4: the premiere. Ever since he's been appointed, has been stressing 163 00:07:35,200 --> 00:07:38,440 Speaker 4: need for FDI and the like, allowing visa free travel 164 00:07:38,480 --> 00:07:41,200 Speaker 4: to China for business person, that kind of facilitation. That 165 00:07:41,280 --> 00:07:45,280 Speaker 4: message is there. But going back to mathematics, capitulation to mathematics, right, 166 00:07:45,360 --> 00:07:47,360 Speaker 4: especially if you believe in the growth target, you have 167 00:07:47,360 --> 00:07:49,320 Speaker 4: to realize reality and accelerate everything. 168 00:07:49,400 --> 00:07:51,560 Speaker 2: Jeffrey, you thank you so much for joining us. 169 00:07:51,600 --> 00:07:52,320 Speaker 4: Thank you. It's a pleasure. 170 00:07:52,480 --> 00:07:54,720 Speaker 3: So he hasn't been here since seventeen eighty four. Now 171 00:07:54,920 --> 00:07:56,720 Speaker 3: that's a big It goes back to ya. 172 00:07:56,800 --> 00:07:59,160 Speaker 5: I know it's number one Wall Street, the best address 173 00:07:59,280 --> 00:07:59,960 Speaker 5: on global water. 174 00:08:00,080 --> 00:08:01,400 Speaker 3: Jeffrey, thank you so much. 175 00:08:01,440 --> 00:08:12,720 Speaker 6: He is with b and wife. 176 00:08:14,280 --> 00:08:17,640 Speaker 2: This is what Bloomberg Surveillance is about. Advancing the conversation, 177 00:08:18,400 --> 00:08:22,200 Speaker 2: the quality of the debate today, an economics finance investment 178 00:08:22,280 --> 00:08:25,840 Speaker 2: in all The only reason it's here is because Texas 179 00:08:25,920 --> 00:08:30,440 Speaker 2: is number one in the NCAA Football ratings. Ed, Heyman's 180 00:08:30,480 --> 00:08:33,400 Speaker 2: having the best September is he's ever go get them 181 00:08:33,440 --> 00:08:37,120 Speaker 2: log arts and you've got the fight and Texas aggy's 182 00:08:37,160 --> 00:08:39,640 Speaker 2: coming up here. My father was at A and M 183 00:08:39,720 --> 00:08:43,480 Speaker 2: so college station will do it to you here in 184 00:08:43,600 --> 00:08:46,640 Speaker 2: a distance, Ed, you are here within your horrifically busy 185 00:08:46,679 --> 00:08:51,760 Speaker 2: schedule to explain a shift. What did Julian and Manuel 186 00:08:51,840 --> 00:08:55,680 Speaker 2: and your team at Evercore is I do to convince 187 00:08:55,760 --> 00:09:00,000 Speaker 2: you to move to a construct economic outcome for mister Powell. 188 00:09:01,920 --> 00:09:07,520 Speaker 7: Some of data dog as you know. And I'd been 189 00:09:07,640 --> 00:09:12,880 Speaker 7: lugging around a recession forecast for about a year and 190 00:09:14,360 --> 00:09:18,920 Speaker 7: my kids were laughing at me. My wife was kidding 191 00:09:18,920 --> 00:09:22,360 Speaker 7: me about it, and I d I just I couldn't 192 00:09:22,360 --> 00:09:27,080 Speaker 7: take it. And the fourth quarter's coming up more substantly. 193 00:09:27,840 --> 00:09:31,640 Speaker 7: Fourth quarters coming up in a couple of weeks, and 194 00:09:31,679 --> 00:09:33,600 Speaker 7: it's gonna be positive. 195 00:09:33,800 --> 00:09:34,079 Speaker 3: Yep. 196 00:09:34,920 --> 00:09:37,040 Speaker 7: So I have to change my forecast again to push 197 00:09:37,080 --> 00:09:41,880 Speaker 7: it out. And anecdotal is coming in pretty strong. UH 198 00:09:41,960 --> 00:09:45,959 Speaker 7: unemployment claims, which is the best government data has been strong. 199 00:09:47,080 --> 00:09:47,160 Speaker 4: UH. 200 00:09:47,760 --> 00:09:51,760 Speaker 7: System's got a lot of liquidity in it, and money's 201 00:09:51,800 --> 00:09:57,400 Speaker 7: not tight, as you know, yep. And so I decided 202 00:09:57,440 --> 00:10:01,120 Speaker 7: I should retreat to fight another day. 203 00:10:02,160 --> 00:10:06,000 Speaker 5: So if a recession is not in the imminent you 204 00:10:06,040 --> 00:10:09,720 Speaker 5: know future, what is what should the FED do tomorrow? 205 00:10:09,760 --> 00:10:10,360 Speaker 3: Do you think. 206 00:10:11,800 --> 00:10:13,440 Speaker 7: I don't really care right now? 207 00:10:13,600 --> 00:10:14,200 Speaker 3: You don't really care? 208 00:10:14,240 --> 00:10:14,520 Speaker 6: Okay? 209 00:10:14,600 --> 00:10:17,319 Speaker 7: I mean I don't care in the sense that if 210 00:10:17,320 --> 00:10:22,839 Speaker 7: they don't do fifty, I'll be shocked. Okay, because I've 211 00:10:22,840 --> 00:10:25,640 Speaker 7: been at this so long, and the FED picks out 212 00:10:25,640 --> 00:10:30,040 Speaker 7: somebody like Timors to communicate, frankly to me and you, 213 00:10:31,880 --> 00:10:38,160 Speaker 7: this is not a situation where they're peddling their own view. 214 00:10:39,000 --> 00:10:41,319 Speaker 7: And Timorus has said over and over the FED is 215 00:10:41,360 --> 00:10:46,760 Speaker 7: going to do fifty, and if he's if they don't 216 00:10:46,760 --> 00:10:48,280 Speaker 7: do fifty, go back. 217 00:10:48,360 --> 00:10:50,200 Speaker 3: We got to stop. This is very important. 218 00:10:50,480 --> 00:10:52,760 Speaker 2: Nick Timro is not standing with the Wall Street Journal 219 00:10:52,800 --> 00:10:56,320 Speaker 2: and Colby Smith at the FT full disclosure. Colby worked 220 00:10:56,320 --> 00:10:58,920 Speaker 2: for surveillance for years. We're really proud of what she's 221 00:10:58,960 --> 00:11:05,320 Speaker 2: done at the T Okay, this is really really important. 222 00:11:05,400 --> 00:11:08,160 Speaker 2: They've lost control of communication. 223 00:11:08,720 --> 00:11:08,880 Speaker 3: Now. 224 00:11:08,880 --> 00:11:12,200 Speaker 2: We had Arthur Burns smoke signals from his pipe, we 225 00:11:12,240 --> 00:11:16,439 Speaker 2: had Greenspran with we're all on the same page, one line, 226 00:11:16,880 --> 00:11:20,880 Speaker 2: and we're now where we are for everybody nationwide, listening 227 00:11:21,280 --> 00:11:27,160 Speaker 2: worldwide listening. What's Ed Hyman's best communication model for our 228 00:11:27,280 --> 00:11:28,040 Speaker 2: central bank? 229 00:11:28,920 --> 00:11:32,320 Speaker 3: Timorous? Nick Tamros, You think they should be doing it 230 00:11:32,360 --> 00:11:33,120 Speaker 3: through the media. 231 00:11:33,600 --> 00:11:35,000 Speaker 7: That's the way they do it, they know. 232 00:11:35,080 --> 00:11:38,360 Speaker 3: But what do you recommend we do to write my game? 233 00:11:38,960 --> 00:11:39,160 Speaker 7: Game? 234 00:11:39,240 --> 00:11:39,360 Speaker 2: Oh? 235 00:11:39,360 --> 00:11:39,800 Speaker 3: Come on? 236 00:11:40,520 --> 00:11:43,360 Speaker 2: Should we be more fractious like the Bank of England? 237 00:11:43,920 --> 00:11:47,440 Speaker 7: We are what we are? The Bank of England first, 238 00:11:47,480 --> 00:11:51,360 Speaker 7: the of the Buddhist Bank. They would actually try and 239 00:11:52,200 --> 00:11:53,360 Speaker 7: mislead people. 240 00:11:53,760 --> 00:11:58,120 Speaker 8: Fair, I will give you you cut and you say 241 00:11:58,160 --> 00:12:02,840 Speaker 8: you're in these and or Piden and then Volker was 242 00:12:03,480 --> 00:12:06,040 Speaker 8: close to the vest and then. 243 00:12:05,960 --> 00:12:11,319 Speaker 7: Green Span came in and introduced the transparency program. 244 00:12:11,000 --> 00:12:11,840 Speaker 3: Which we have today. 245 00:12:12,600 --> 00:12:15,920 Speaker 7: But you know it's it's going to happen tomorrow, right 246 00:12:16,040 --> 00:12:19,760 Speaker 7: and twenty five or fifty. It's not a killer one 247 00:12:19,880 --> 00:12:20,440 Speaker 7: where the other. 248 00:12:21,040 --> 00:12:23,400 Speaker 5: So how do you think about this US economy in 249 00:12:23,400 --> 00:12:25,720 Speaker 5: the context of the global economy? We've heard about the 250 00:12:25,800 --> 00:12:29,760 Speaker 5: US exceptionalism. Is that something you buy into is it 251 00:12:29,880 --> 00:12:31,800 Speaker 5: new or is it it. 252 00:12:31,880 --> 00:12:36,960 Speaker 7: Is not particularly new? I tend to buy into that story. 253 00:12:37,080 --> 00:12:41,040 Speaker 7: But there have been plenty of plenty of ink spilled 254 00:12:41,080 --> 00:12:44,720 Speaker 7: on this that the US really is an exceptional place 255 00:12:45,760 --> 00:12:52,440 Speaker 7: and compared to Europe, which is not a particularly high bar. Right, 256 00:12:50,880 --> 00:12:55,960 Speaker 7: and then China, I've almost lost touch with China. 257 00:12:56,760 --> 00:12:58,960 Speaker 2: Well let me go there in your acclaimed note, folks 258 00:12:59,000 --> 00:13:01,760 Speaker 2: who protect the copyright of all our guests to get 259 00:13:01,880 --> 00:13:06,480 Speaker 2: Edheim and Julian Emmanuel's work, go to evercore isid. I'm sorry. 260 00:13:06,480 --> 00:13:10,040 Speaker 2: The second derivative on China isn't pretty. You've got China 261 00:13:10,200 --> 00:13:14,320 Speaker 2: M two China Bank loans ugly, ugly ugly. Do you 262 00:13:14,360 --> 00:13:18,160 Speaker 2: have a faith that Beijing could clear the market, almost 263 00:13:18,160 --> 00:13:21,000 Speaker 2: in a Hyekian way? They could come in say we 264 00:13:21,080 --> 00:13:25,199 Speaker 2: got this wrong, straighten it out and rebuild FDI in investment. 265 00:13:26,080 --> 00:13:32,440 Speaker 7: Yes, but no, they're not doing it. And so every 266 00:13:32,559 --> 00:13:36,080 Speaker 7: day in the past, particularly the past two or three months, 267 00:13:36,559 --> 00:13:41,440 Speaker 7: I thought they might come in any day and clear 268 00:13:41,520 --> 00:13:45,960 Speaker 7: the boards. And I've waited and waited and waited, and 269 00:13:46,200 --> 00:13:50,520 Speaker 7: we survey twenty one companies that have sales in China, 270 00:13:51,640 --> 00:13:54,800 Speaker 7: and that survey is twenty nine on a zero to 271 00:13:54,920 --> 00:13:59,319 Speaker 7: one hundred. It's been as high as seventy nine. It's 272 00:13:59,360 --> 00:14:03,040 Speaker 7: been really wrong. And the US sort of a equivalent 273 00:14:03,240 --> 00:14:07,560 Speaker 7: is forty eight. So I mean twenty nine is really bad. 274 00:14:07,640 --> 00:14:10,920 Speaker 5: Yet you still see time and time again. Elon Musk, 275 00:14:11,160 --> 00:14:15,280 Speaker 5: Tim Cook making the pilgrimage to China, because no matter 276 00:14:15,720 --> 00:14:17,520 Speaker 5: what you say, it's still there. 277 00:14:17,559 --> 00:14:18,440 Speaker 3: It's still big. 278 00:14:18,600 --> 00:14:21,320 Speaker 5: The middle class presumably is great. It's all the arguments 279 00:14:21,360 --> 00:14:22,760 Speaker 5: that we've heard of the last twenty or thirty years 280 00:14:22,800 --> 00:14:26,320 Speaker 5: are still true. But the government doesn't seem to be open. 281 00:14:26,640 --> 00:14:27,440 Speaker 5: I guess as. 282 00:14:27,280 --> 00:14:28,360 Speaker 6: It used to be. 283 00:14:29,360 --> 00:14:32,280 Speaker 7: I'm a big China fan, Okay. I'm on the board 284 00:14:32,320 --> 00:14:36,680 Speaker 7: of the China Institute. I have many friends who are Chinese. 285 00:14:37,000 --> 00:14:43,000 Speaker 7: I want to encourage US Chinese relations. But I'm at 286 00:14:43,000 --> 00:14:45,680 Speaker 7: the end of my rope and I'm not sure if 287 00:14:45,680 --> 00:14:46,480 Speaker 7: I'll ever go back. 288 00:14:47,520 --> 00:14:47,880 Speaker 3: Wow. 289 00:14:48,520 --> 00:14:51,680 Speaker 5: And is that simply a reflection of the political environment 290 00:14:51,720 --> 00:14:55,320 Speaker 5: where all you talk about is tariffs here, tariff's there, 291 00:14:55,480 --> 00:14:57,600 Speaker 5: and then on the other side of President g you 292 00:14:57,640 --> 00:14:58,640 Speaker 5: know again, I'm not sure. 293 00:14:58,960 --> 00:15:00,360 Speaker 7: I'm not sure they'll make come back. 294 00:15:00,520 --> 00:15:01,960 Speaker 3: Yeah, okay, uh. 295 00:15:02,640 --> 00:15:05,040 Speaker 2: And we got to finish strong here. We got too 296 00:15:05,080 --> 00:15:07,360 Speaker 2: much going on. The Dow up one hundred points now 297 00:15:07,440 --> 00:15:11,560 Speaker 2: up eighty eight points. The University of Texas is one 298 00:15:11,560 --> 00:15:14,640 Speaker 2: of the few schools in the planet that actually make 299 00:15:14,760 --> 00:15:21,400 Speaker 2: money at sports. Football contributes, basketball contributes, baseball pops six 300 00:15:21,440 --> 00:15:26,200 Speaker 2: million dollars a year at the University a Texas. 301 00:15:26,240 --> 00:15:28,480 Speaker 3: Where is your University of Texas right? 302 00:15:28,560 --> 00:15:30,600 Speaker 2: I mean it's it's I've had the privilege of talking 303 00:15:30,600 --> 00:15:33,640 Speaker 2: to Michael Dell about this, and it just seems like 304 00:15:33,760 --> 00:15:38,120 Speaker 2: everything's moving in the right direction for the academics, the 305 00:15:38,240 --> 00:15:40,760 Speaker 2: athletics of the University of Texas. 306 00:15:40,840 --> 00:15:42,000 Speaker 3: What do you see there right now? 307 00:15:42,040 --> 00:15:47,000 Speaker 7: It's a great school and he shouldn't uh say the 308 00:15:47,040 --> 00:15:52,040 Speaker 7: truth and the truth still set you free? Whoa on 309 00:15:52,080 --> 00:15:55,920 Speaker 7: the tower of the University of Texas. It's just the 310 00:15:55,960 --> 00:15:59,560 Speaker 7: school that does a great job for kids, and I'm 311 00:15:59,640 --> 00:16:03,280 Speaker 7: proud to have gone there. Academically, it's really good. 312 00:16:03,880 --> 00:16:06,760 Speaker 2: Yeaports together like you know, the only equivalent I could 313 00:16:06,760 --> 00:16:08,120 Speaker 2: think of its Michigan. 314 00:16:08,200 --> 00:16:11,800 Speaker 3: Where they do you know, there's place and you know. 315 00:16:12,320 --> 00:16:15,840 Speaker 2: They had football coaches making one tenth of what ed 316 00:16:15,920 --> 00:16:19,000 Speaker 2: Hymen's making. That's a problem, but the answer is that 317 00:16:19,200 --> 00:16:20,200 Speaker 2: they're you know, it's. 318 00:16:20,000 --> 00:16:22,240 Speaker 3: Like a real deal Catholic. 319 00:16:21,880 --> 00:16:24,600 Speaker 2: Like Dukes as well. A generous of you to come 320 00:16:24,640 --> 00:16:27,760 Speaker 2: in again. We wanted to get Julian Emmanuel, but he 321 00:16:27,840 --> 00:16:29,720 Speaker 2: was so we got. 322 00:16:29,520 --> 00:16:31,840 Speaker 3: You to thank you. 323 00:16:31,960 --> 00:16:37,680 Speaker 2: Edmenqu Si with a view to move away from economic 324 00:16:37,800 --> 00:16:49,280 Speaker 2: slowdown to someplace new. We will look for the data. 325 00:16:51,640 --> 00:16:55,920 Speaker 2: A very important interview for all of America within the 326 00:16:55,960 --> 00:17:00,000 Speaker 2: election and the distraction of domestic debate versus our four 327 00:17:00,120 --> 00:17:05,040 Speaker 2: in policy future. Jermani Bertecci had a wonderful conversation with 328 00:17:05,200 --> 00:17:08,919 Speaker 2: the Prime Minister of Iraq, Mohammad Shia al Sudani on 329 00:17:09,000 --> 00:17:12,120 Speaker 2: the tensions of Iraq Iran in the Middle East. 330 00:17:12,240 --> 00:17:12,879 Speaker 3: Let's listen. 331 00:17:14,560 --> 00:17:19,000 Speaker 1: The understanding of this relationship between Iraq and Iran is 332 00:17:19,040 --> 00:17:23,159 Speaker 1: based on mutual interests and mutual respect. Iran is a 333 00:17:23,200 --> 00:17:27,320 Speaker 1: neighboring country and we share one four hundred kilometers and 334 00:17:27,359 --> 00:17:30,960 Speaker 1: that's in our interest to have a close relationship, especially 335 00:17:30,960 --> 00:17:34,920 Speaker 1: that Iran has been supportive of the political process and 336 00:17:35,119 --> 00:17:39,639 Speaker 1: our efforts in combating terrorism. Of course, Iraq is the 337 00:17:39,680 --> 00:17:42,959 Speaker 1: only country in the region that has a special relationship 338 00:17:43,040 --> 00:17:46,960 Speaker 1: between Iran and the United States, and we try through 339 00:17:46,960 --> 00:17:52,159 Speaker 1: this positive characteristic to help in bringing opinions closer. And 340 00:17:52,240 --> 00:17:56,439 Speaker 1: we are interested to have stability in the region away 341 00:17:56,480 --> 00:18:00,920 Speaker 1: from the access policy. We don't want the tense relationships 342 00:18:00,960 --> 00:18:04,159 Speaker 1: and the stances of other countries of the world to 343 00:18:04,240 --> 00:18:08,760 Speaker 1: impact the Iraqi situation. This is our diplomatic effort and 344 00:18:08,880 --> 00:18:13,280 Speaker 1: movements in terms of our bilateral and regional ties. 345 00:18:15,000 --> 00:18:18,960 Speaker 2: The Prime Minister of Iraq Mohammad Shia el Saddani there 346 00:18:19,440 --> 00:18:23,240 Speaker 2: and the distinction always made within the levant and over 347 00:18:23,320 --> 00:18:27,679 Speaker 2: towards Persia is Shia versus Sunni, and it is unusual 348 00:18:27,720 --> 00:18:31,040 Speaker 2: to have a Shia Prime Minister of Iraq as in 349 00:18:31,160 --> 00:18:35,240 Speaker 2: Iran versus a Sunni heritage Jamani Bertecci joins us now 350 00:18:35,280 --> 00:18:41,560 Speaker 2: from Dubai Jamani. Most people across America this morning are 351 00:18:41,680 --> 00:18:46,000 Speaker 2: unaware that there's accountable half a million who lost their 352 00:18:46,080 --> 00:18:51,080 Speaker 2: lives in the Iraq Iranian War of the nineteen eighties. 353 00:18:51,720 --> 00:18:55,679 Speaker 2: How does Iraq and Iran begin to communicate now? 354 00:18:57,800 --> 00:19:00,320 Speaker 9: It's such an interesting perspective that you bring in, and 355 00:19:00,359 --> 00:19:04,200 Speaker 9: that is true the War of the eighties, very historical 356 00:19:04,240 --> 00:19:06,280 Speaker 9: war in the region that probably doesn't get a lot 357 00:19:06,280 --> 00:19:09,560 Speaker 9: of airtime. But the situation today is very different. That 358 00:19:09,680 --> 00:19:12,639 Speaker 9: you have to remember there are a couple of things 359 00:19:12,640 --> 00:19:16,440 Speaker 9: that bind Iraq and Iran together. It's starting with religious 360 00:19:16,720 --> 00:19:19,400 Speaker 9: religious binds. And you've got to think about the two 361 00:19:19,520 --> 00:19:23,520 Speaker 9: holiest site for Shia Islam. That's Najaf and Kharabala. They 362 00:19:23,520 --> 00:19:26,280 Speaker 9: both fall in Iraq. So that is always going to 363 00:19:26,320 --> 00:19:28,400 Speaker 9: be the case, and that's always going to be that 364 00:19:28,440 --> 00:19:31,280 Speaker 9: religious draw and that religious tie that brings them together. 365 00:19:31,480 --> 00:19:34,240 Speaker 9: But increasingly what we are seeing, especially in the last 366 00:19:34,280 --> 00:19:38,120 Speaker 9: couple of years, is they've got politically a lot closer. 367 00:19:38,400 --> 00:19:40,640 Speaker 9: And I had the opportunity to speak with the Prime 368 00:19:40,680 --> 00:19:43,159 Speaker 9: Minister of the course of the weekend, and it is 369 00:19:43,200 --> 00:19:47,439 Speaker 9: worth noting that he does enjoy a parliamenting majority. But 370 00:19:47,520 --> 00:19:50,840 Speaker 9: the reason he enjoys that parliamenting majority is because he's 371 00:19:50,880 --> 00:19:55,720 Speaker 9: been given legitimacy by political groups that are closely supported 372 00:19:55,760 --> 00:20:00,520 Speaker 9: and affiliated to Iran. And so it is very worthy 373 00:20:00,680 --> 00:20:03,200 Speaker 9: that just in the last couple of years, Iraq has 374 00:20:03,280 --> 00:20:06,520 Speaker 9: fostered much closer political relationships to Iran. And one of 375 00:20:06,520 --> 00:20:09,320 Speaker 9: the concerns in the region is that there are several 376 00:20:09,400 --> 00:20:13,800 Speaker 9: non state actors that are again operating within this so 377 00:20:13,960 --> 00:20:16,800 Speaker 9: called axis of resistance, that have been carrying on attacks, 378 00:20:16,920 --> 00:20:19,680 Speaker 9: either US targets or Israeli targets. 379 00:20:19,720 --> 00:20:24,200 Speaker 2: Well, your leadership of the conversation in Dubai, how does 380 00:20:24,600 --> 00:20:31,280 Speaker 2: Sunni Middle East react to a combined Shia Iran and Iraq? 381 00:20:31,720 --> 00:20:36,520 Speaker 2: How does Saudi Arabia, How does UAE create the rest 382 00:20:36,680 --> 00:20:40,159 Speaker 2: out of frankly to the west to Morocco. How do 383 00:20:40,280 --> 00:20:42,560 Speaker 2: they respond to this combination. 384 00:20:44,160 --> 00:20:48,399 Speaker 9: So the impression that I got from speaking to the 385 00:20:48,400 --> 00:20:51,040 Speaker 9: Prime Minister is that they see themselves as somewhat of 386 00:20:51,040 --> 00:20:53,760 Speaker 9: a mediator. Now you will remember again this went under 387 00:20:53,800 --> 00:20:57,399 Speaker 9: the radar, but there was somewhat of a mediation that 388 00:20:57,480 --> 00:20:59,959 Speaker 9: took place between Saudi Arabia and Iran a couple of 389 00:21:00,080 --> 00:21:04,200 Speaker 9: years ago. And everyone gave China the credit for hosting 390 00:21:04,320 --> 00:21:07,000 Speaker 9: the talks between the two countries, but of course one 391 00:21:07,000 --> 00:21:10,080 Speaker 9: being Signy and one being shira But in reality it 392 00:21:10,240 --> 00:21:13,600 Speaker 9: was Iraq operating behind the scenes, going in between the two. 393 00:21:13,640 --> 00:21:15,760 Speaker 9: Now you have to remember there's another link between Iraq 394 00:21:15,800 --> 00:21:17,879 Speaker 9: and Saudi Arabian that is, of course, they're the second 395 00:21:17,960 --> 00:21:21,480 Speaker 9: largest oil producer within OPEK. They're a very important member 396 00:21:21,480 --> 00:21:24,040 Speaker 9: of OPEK. There's a lot of focus obviously within OPAK 397 00:21:24,080 --> 00:21:28,359 Speaker 9: to support oil prices right now, and so Iraq is 398 00:21:28,440 --> 00:21:32,640 Speaker 9: pitching itself as a country that can mediate between oil 399 00:21:32,680 --> 00:21:36,240 Speaker 9: countries and the Gulf and also one that looks to 400 00:21:36,760 --> 00:21:41,320 Speaker 9: enjoy bilateral security relationships with the US once the full 401 00:21:41,359 --> 00:21:43,240 Speaker 9: withdrawal of the Coalition forces take. 402 00:21:43,119 --> 00:21:48,040 Speaker 5: Place, and to that end, Dremana. In your interview with 403 00:21:48,880 --> 00:21:51,159 Speaker 5: the Iraqi PM, he said that US troops are no 404 00:21:51,240 --> 00:21:55,040 Speaker 5: longer needed following a near defeat of ISIS. What's the 405 00:21:55,119 --> 00:21:58,320 Speaker 5: latest on that relationship and the troop deployment. 406 00:21:58,600 --> 00:21:59,879 Speaker 9: Yeah, so you have to go back all the way 407 00:21:59,880 --> 00:22:03,400 Speaker 9: to twenty fourteen. Remember, back then ISIS was a very 408 00:22:03,480 --> 00:22:07,200 Speaker 9: clear and present danger. At one point, the ISIS forces 409 00:22:07,280 --> 00:22:09,480 Speaker 9: were thought to have taken over about one third of 410 00:22:09,520 --> 00:22:12,200 Speaker 9: the land mass in Iraq and Syria. So twenty fourteen 411 00:22:12,320 --> 00:22:15,720 Speaker 9: was a very different situation, which meant you had the US, 412 00:22:15,760 --> 00:22:19,320 Speaker 9: alongside a coalition forces from all around the world, deploy 413 00:22:19,440 --> 00:22:22,240 Speaker 9: troops into Iraq to defeat the threat of ISIS. You 414 00:22:22,320 --> 00:22:25,119 Speaker 9: Platford to today. It's a decade later, and what the 415 00:22:25,160 --> 00:22:27,960 Speaker 9: Prime Minister was telling me is ISIS is no longer 416 00:22:28,080 --> 00:22:31,320 Speaker 9: a threat. It's no longer a threat to the state. Yes, 417 00:22:31,400 --> 00:22:34,000 Speaker 9: there are few commanders here and there hiding out to 418 00:22:34,080 --> 00:22:37,320 Speaker 9: use his language in caves or in remote villages, but 419 00:22:37,400 --> 00:22:41,720 Speaker 9: they don't have any political support, they don't have ISIS incubators, 420 00:22:41,760 --> 00:22:44,000 Speaker 9: and therefore are much less of a risk. The same 421 00:22:44,000 --> 00:22:46,840 Speaker 9: way they would look at drug smugglers is how they 422 00:22:46,840 --> 00:22:49,879 Speaker 9: would view ISIS and the isis risk and therefore, in 423 00:22:49,920 --> 00:22:54,280 Speaker 9: his eyes, there's less of a justification for US troops 424 00:22:54,320 --> 00:22:57,160 Speaker 9: and US advisors termain on the grounds now. He suggested 425 00:22:57,160 --> 00:22:59,880 Speaker 9: that there have been ongoing discussions with the Biden administration 426 00:23:00,160 --> 00:23:03,359 Speaker 9: and that an announcement would be coming soon, or at 427 00:23:03,440 --> 00:23:07,359 Speaker 9: least that is his hope. But in their eyes, there's 428 00:23:07,440 --> 00:23:10,400 Speaker 9: no need anymore to have that arrangement with the US 429 00:23:10,480 --> 00:23:11,840 Speaker 9: and with the Coalition forces. 430 00:23:12,160 --> 00:23:14,800 Speaker 2: Jamana thank you so much leading her coverage into Middle 431 00:23:14,800 --> 00:23:19,440 Speaker 2: East horizons on Bloomberg Television in duvide Jamana Vertecci. 432 00:23:29,920 --> 00:23:30,200 Speaker 3: Daily. 433 00:23:30,240 --> 00:23:33,679 Speaker 2: Look at the front pages, Alisa Matteo hour, Lisa, what 434 00:23:33,680 --> 00:23:34,040 Speaker 2: do you have? 435 00:23:34,240 --> 00:23:36,480 Speaker 10: Okay, this is Bloomberg Business Week. You have to check 436 00:23:36,520 --> 00:23:38,240 Speaker 10: this out in the terminal. Came out with its best 437 00:23:38,320 --> 00:23:41,400 Speaker 10: business school rankings for twenty twenty four twenty twenty five, 438 00:23:41,760 --> 00:23:45,600 Speaker 10: and they look at the areas like compensation, learning, networking, entrepreneurship. 439 00:23:46,280 --> 00:23:49,520 Speaker 10: Stanford took the top spot for the sixth year in 440 00:23:49,760 --> 00:23:52,159 Speaker 10: a row. They scored in four of the five areas 441 00:23:52,160 --> 00:23:54,480 Speaker 10: they look at. And then you round out the top five. 442 00:23:54,520 --> 00:23:58,400 Speaker 10: You have Chicago's Booth School, then you have northwesterns Kellogg 443 00:23:58,800 --> 00:24:02,680 Speaker 10: Dartmouth's Dartmouth's Talk and then Virginia's Darden, So that kind 444 00:24:02,720 --> 00:24:04,480 Speaker 10: of rounds out the whole top for you. 445 00:24:04,480 --> 00:24:07,120 Speaker 2: There and each of them different, them different. 446 00:24:07,000 --> 00:24:08,920 Speaker 10: Yeah, and each of them different. And also what it's 447 00:24:09,000 --> 00:24:10,760 Speaker 10: interesting too in this list you have to check out 448 00:24:10,760 --> 00:24:13,920 Speaker 10: it breaks down which industries are hiring and from which 449 00:24:14,000 --> 00:24:18,119 Speaker 10: schools too. So if you're looking out, they're consulting hiring 450 00:24:18,160 --> 00:24:22,159 Speaker 10: the most, and that's followed by financial, technology, healthcare and consumer. 451 00:24:22,760 --> 00:24:23,960 Speaker 10: So that's how they bring it down to. 452 00:24:24,800 --> 00:24:28,159 Speaker 2: Over in Europe, I am d is I E s E. 453 00:24:28,240 --> 00:24:31,360 Speaker 2: Business London Business School in NEBERCONTI. Good morning to those 454 00:24:31,359 --> 00:24:35,440 Speaker 2: in Italy and see it as well with some monitor 455 00:24:35,440 --> 00:24:40,080 Speaker 2: their Bloomberg BusinessWeek with that, and you know, it's it's 456 00:24:40,080 --> 00:24:41,160 Speaker 2: a great It's all it is. 457 00:24:41,440 --> 00:24:45,840 Speaker 3: It's a great list. I always, you know, seventy seven schools. 458 00:24:45,760 --> 00:24:48,920 Speaker 5: And Doukems in number twelve obviously underrated. 459 00:24:48,920 --> 00:24:50,800 Speaker 3: The should top ten of course. 460 00:24:51,280 --> 00:24:53,399 Speaker 2: I think the big you know, you know, within the 461 00:24:53,440 --> 00:24:57,320 Speaker 2: competition of this Harvard's number six, which I think would 462 00:24:57,359 --> 00:25:01,520 Speaker 2: be the surprise within our work. Sloan Carnegie Melligan, Carnie 463 00:25:01,600 --> 00:25:05,280 Speaker 2: mel I'll get it. Three two one Carnegie, Mellon, m 464 00:25:05,359 --> 00:25:09,040 Speaker 2: I T nine and ten, Duke twelve, and on we 465 00:25:09,040 --> 00:25:12,760 Speaker 2: go and there than Carolina? Though is there really you 466 00:25:12,800 --> 00:25:13,240 Speaker 2: care about? 467 00:25:14,000 --> 00:25:14,240 Speaker 3: Next? 468 00:25:14,240 --> 00:25:14,600 Speaker 2: What do you go? 469 00:25:14,800 --> 00:25:15,080 Speaker 3: All right? 470 00:25:15,080 --> 00:25:17,720 Speaker 10: We're keeping with education. This one I saw an associated press. 471 00:25:17,720 --> 00:25:19,840 Speaker 10: It stood out to me because it says students are 472 00:25:19,880 --> 00:25:23,320 Speaker 10: reading fewer books in English class nowadays. So if you 473 00:25:23,359 --> 00:25:27,200 Speaker 10: remember how many books we used to read, yes, yes, 474 00:25:27,560 --> 00:25:30,720 Speaker 10: so here's what the teachers are doing. Instead, they're focusing 475 00:25:30,760 --> 00:25:34,600 Speaker 10: on select packages passages from the books instead of having 476 00:25:34,680 --> 00:25:38,600 Speaker 10: kids read the entire book. They're given chapter summaries for 477 00:25:38,680 --> 00:25:41,159 Speaker 10: every novel that they were assigned, so they sometimes go 478 00:25:41,200 --> 00:25:44,359 Speaker 10: to that. They're playing the audio books. They were assigning 479 00:25:44,440 --> 00:25:47,679 Speaker 10: fewer books, more quizzes. But they're saying there's a reason 480 00:25:47,720 --> 00:25:51,640 Speaker 10: behind the mass reason, the reason shorter attention spans. Kids 481 00:25:51,640 --> 00:25:52,640 Speaker 10: can't sit there and read, and. 482 00:25:52,880 --> 00:25:54,200 Speaker 3: You have to teach them. 483 00:25:54,359 --> 00:25:57,399 Speaker 2: Yes, the joy of getting to the back end of 484 00:25:57,560 --> 00:25:58,600 Speaker 2: Tale of Two Cities. 485 00:25:59,040 --> 00:26:03,680 Speaker 10: Yes, pressure for standardized tests, they say, that's it, it's another way. 486 00:26:03,760 --> 00:26:05,960 Speaker 2: Got that email the other day, don't get me? 487 00:26:06,480 --> 00:26:07,240 Speaker 7: Oh see see. 488 00:26:07,240 --> 00:26:09,560 Speaker 10: And then the sense of short They say that short, 489 00:26:09,600 --> 00:26:12,240 Speaker 10: firm content is going to prepare them for the digital world, 490 00:26:12,320 --> 00:26:12,960 Speaker 10: so they need. 491 00:26:12,880 --> 00:26:13,840 Speaker 2: But not college. 492 00:26:14,000 --> 00:26:17,240 Speaker 3: That's the difference. Let's say they get into duke Swing. 493 00:26:17,359 --> 00:26:17,960 Speaker 3: Who's the duke? 494 00:26:18,359 --> 00:26:20,960 Speaker 2: They it's Friday, and they go, okay, this is the 495 00:26:21,000 --> 00:26:21,920 Speaker 2: reading in this weeekend. 496 00:26:22,000 --> 00:26:24,960 Speaker 3: Yeah, boom your eighty. 497 00:26:24,800 --> 00:26:29,240 Speaker 2: P one hundred pages and it's two different courses. You 498 00:26:29,320 --> 00:26:31,000 Speaker 2: wake up, you try to get through it, and you 499 00:26:31,119 --> 00:26:32,760 Speaker 2: got to figure out what to do with the second book. 500 00:26:33,240 --> 00:26:36,960 Speaker 3: That's and they're not. I see it every day. I don't. 501 00:26:37,920 --> 00:26:40,640 Speaker 3: You're upsetting. I gotta get you going. 502 00:26:40,720 --> 00:26:41,480 Speaker 5: That's why I do it. 503 00:26:43,040 --> 00:26:45,920 Speaker 10: This one's day Draft Kings being sued by the MLB 504 00:26:46,000 --> 00:26:49,400 Speaker 10: Players Union. They're using the names images of their members 505 00:26:49,400 --> 00:26:53,040 Speaker 10: without their permission. So this is a lawsuit filed in Philadelphia. 506 00:26:53,200 --> 00:26:56,040 Speaker 10: So Draft Kings also Bet three six five they're also involved. 507 00:26:56,040 --> 00:26:59,920 Speaker 10: They've been using pictures of these professional players and marketing campaign. 508 00:27:00,680 --> 00:27:03,359 Speaker 10: The lawyer said that DraftKings and at three six five, 509 00:27:03,400 --> 00:27:04,679 Speaker 10: they don't have to do that. They could offer the 510 00:27:04,760 --> 00:27:07,960 Speaker 10: same type of bets and other sports without using the images. 511 00:27:08,440 --> 00:27:11,200 Speaker 10: But it's you know, Draft Kings has been expanding the offerings. 512 00:27:11,200 --> 00:27:13,440 Speaker 10: You know, the last month they acquired website Simple Bet. 513 00:27:13,560 --> 00:27:16,479 Speaker 10: So it just goes to show you kind of like 514 00:27:16,560 --> 00:27:18,080 Speaker 10: the different changes that are going. 515 00:27:18,160 --> 00:27:20,359 Speaker 5: And then Michael Barr had the story about the sports 516 00:27:20,400 --> 00:27:22,720 Speaker 5: gaming in New Jersey. All, I mean, this is just 517 00:27:22,840 --> 00:27:26,439 Speaker 5: we're the early innings of all this sports betting and 518 00:27:26,560 --> 00:27:27,680 Speaker 5: I don't know where it takes. 519 00:27:27,520 --> 00:27:28,000 Speaker 3: Us quite from. 520 00:27:28,320 --> 00:27:30,480 Speaker 10: And yeah, casinos in New Jersey are down. 521 00:27:30,560 --> 00:27:32,960 Speaker 3: Right is you can do it. You can do so 522 00:27:33,040 --> 00:27:35,199 Speaker 3: much just from your phone sitting on your car. 523 00:27:35,400 --> 00:27:39,080 Speaker 2: You have to link the ratings success right to Betty. 524 00:27:39,160 --> 00:27:44,200 Speaker 3: Yeah, I think so, Yeah, I think that brings right right. 525 00:27:44,240 --> 00:27:44,879 Speaker 2: Next, what do you have? 526 00:27:45,000 --> 00:27:47,080 Speaker 10: Okay, this is the last thing. A shift in home 527 00:27:47,119 --> 00:27:50,560 Speaker 10: ownership in the US. More millionaires are choosing to rent 528 00:27:50,720 --> 00:27:53,080 Speaker 10: instead of buy. They say it's just the lack of 529 00:27:53,119 --> 00:27:56,640 Speaker 10: suitable homes. The Wall Street Journal they analyze some data, 530 00:27:56,640 --> 00:27:58,679 Speaker 10: but the millionaires say they'd rather keep their money in 531 00:27:58,800 --> 00:28:02,320 Speaker 10: cash and the stock market another investment. Since home prices, 532 00:28:02,359 --> 00:28:05,600 Speaker 10: transaction fees are so high, you have property taxes on 533 00:28:05,640 --> 00:28:08,040 Speaker 10: the rise, and of course insurance premiums where you have 534 00:28:08,119 --> 00:28:11,080 Speaker 10: those mega mansions on the cliffs, you know, right by 535 00:28:11,119 --> 00:28:14,000 Speaker 10: the water. So that's some of the reasons. But one 536 00:28:14,000 --> 00:28:16,760 Speaker 10: guy said he has a three bedroom apartment luxury Manhattan 537 00:28:16,840 --> 00:28:20,080 Speaker 10: high rise, nineteen thousand dollars a month. That's what he'd 538 00:28:20,160 --> 00:28:22,400 Speaker 10: rather do because he can't find a house. 539 00:28:22,520 --> 00:28:25,960 Speaker 2: Yeah, absolute sea change, absolute see change going on. I 540 00:28:25,960 --> 00:28:28,719 Speaker 2: don't know what to make of it other than if 541 00:28:28,760 --> 00:28:31,280 Speaker 2: people look at it and it doesn't work, if you're 542 00:28:31,280 --> 00:28:35,359 Speaker 2: not investing it somewhere else, it's a failed strategy if 543 00:28:35,400 --> 00:28:38,040 Speaker 2: you're just rent and to rent right dead on arrival. 544 00:28:38,720 --> 00:28:42,240 Speaker 2: But if you're investing as well, you know, everybody's story 545 00:28:42,280 --> 00:28:44,880 Speaker 2: is different, but you do the math and go from there. 546 00:28:45,040 --> 00:28:48,520 Speaker 3: Lisa Mateo, thank you for the newspapers. 547 00:28:49,200 --> 00:28:52,440 Speaker 2: This is a Bloomberg Surveillance podcast, bringing you the best 548 00:28:52,440 --> 00:28:57,240 Speaker 2: in economics, finance, investment, and international relations. You can also 549 00:28:57,280 --> 00:29:01,840 Speaker 2: watch the show live on YouTube. 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