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Speaker 1: This is Bloomberg Business Wait inside from the reporters and

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Speaker 1: editors who bring you America's most trusted business magazine, plus

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Speaker 1: global business, finance and tech news. The Bloomberg Business Week

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Speaker 1: Podcast with Carol Messer and Tim Stenebek from Bloomberg Radio.

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Speaker 2: All Right, we keep saying it over and over again.

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Speaker 2: Get a twenty four hour news cycle with a lot

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Speaker 2: of news out of China. And I feel like I've

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Speaker 2: been saying that for the last two or three weeks.

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Speaker 2: And our Balance of Power newsletter coming out today noting

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Speaker 2: all roads no longer lead to Rome, they lead to Beijing.

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Speaker 2: And this as US Commerce Secretary Gina Romando was wrapping

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Speaker 2: up her trip to China. Yeah, the UK Foreign Secretary

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Speaker 2: also arriving. That's the most senior British diplomatic visitor in

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Speaker 2: five years. Russian President Vlatimir Putin's likely to visit as

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Speaker 2: well in October.

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Speaker 3: That's a big one.

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Speaker 2: Yeah, to meet up with President Ji and so there's

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Speaker 2: a lot going on.

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Speaker 3: Yeah, we're really glad to have back with us for

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Speaker 3: some analysis, for insight on the situation, also for the

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Speaker 3: market and business outlook of China. We've got Andy Brown

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Speaker 3: with us He's the former editorial director at Bloomberg New Economy,

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Speaker 3: and he spent three decades in Asia as both China

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Speaker 3: editor and a columnist for The Wall Street Journal. Today,

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Speaker 3: Carol Andy leads the China Hub as a partner at

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Speaker 3: Brunswick Group. It's a critical issues advisory firm. He joins

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Speaker 3: us on Zoom from New York City.

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Speaker 2: Andy, So good to have you back with us. We've

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Speaker 2: been dying to talk to you because you really always

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Speaker 2: give us some clarity on everything that's going on. So

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Speaker 2: as our Balance of Power newsletter said, all roads no

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Speaker 2: longer lead to Rome, They lead to Beijing, are they right?

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Speaker 4: Well, first of all, it's great to be back on

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Speaker 4: the show, Carol, tim always to be with you.

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Speaker 5: All roads lead to Beijing.

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Speaker 4: Certainly, Gina Raymondo's road led to Beijing and by all

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Speaker 4: accounts a very successful visit. The Chinese take Gina Ramondo

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Speaker 4: very seriously. They trust her, They seem to have a

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Speaker 4: good relationship with her. They find her pragmatic, relatively non ideological.

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Speaker 4: And this is really quite remarkable given that Gina Raymondo

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Speaker 4: is at the sharp end of US economic engagement with China.

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Speaker 4: Right She's the one that presides over this proliferating regime

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Speaker 4: of sanctions and export controls and tariffs, which, of course

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Speaker 4: this administration inherited from the last one, and the Chinese

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Speaker 4: finders deeply threatening. Nonetheless, she had a pretty good visit,

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Speaker 4: and her main message was no, no, no, we're not

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Speaker 4: here to kill you. We don't want to put you

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Speaker 4: out of business. This is not decoupling. This is de risking,

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Speaker 4: and that's a very different thing.

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Speaker 3: Well, what did you make of her comment that she

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Speaker 3: argued that China is driving away American companies by making

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Speaker 3: investments in the world's second biggest economy increasingly hazardous. She

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Speaker 3: said that, Okay, here's the quote, Andy, I know, you

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Speaker 3: know it. We talked a little bit about it yesterday.

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Speaker 3: Increasingly I hear from businesses China is uninvestable because it's

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Speaker 3: become too risky. This is what Gina Ramando told reporters

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Speaker 3: Tuesday when she was aboard a high speed train from

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Speaker 3: Beijing to Shanghai.

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Speaker 2: Investment flows have been flowing out from foreign investors.

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Speaker 4: Well, she said the right thing, and that's what they

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Speaker 4: need to hear because quite often in China, the CEOs

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Speaker 4: of the companies that are investing there don't dare speak

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Speaker 4: that kind of truth to power. And so you know,

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Speaker 4: it takes a gene Raymondo to go over there and

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Speaker 4: and say, look, we have a we have a problem,

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Speaker 4: and businesses certainly do have a problem now in China.

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Speaker 4: It's still I think it's significant though. The second part

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Speaker 4: of your commentry, she went on a high speed train.

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Speaker 4: You know, that's that's interesting, right, That's that's kind of

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Speaker 4: a common touch.

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Speaker 6: She hopped the train to go down to Shanghai.

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Speaker 5: The Chinese would have liked that.

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Speaker 4: They showcased, you know, really unbelievably efficient two hundred mile

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Speaker 4: an hour of four and a half hours from from Beijing.

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Speaker 6: That Songhai, which is like unbelievable.

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Speaker 2: We don't have that here in What is it about

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Speaker 2: her that resonates so well with Chinese officials, Well.

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Speaker 4: I think they feel that they can talk to her

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Speaker 4: and they're going to get a straight answer. And that

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Speaker 4: really was you know, and she she also you know,

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Speaker 4: she she's she's constructive, right, so I thought, actually, she

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Speaker 4: she handled it in a really smart way. She said, look,

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Speaker 4: let let's start by with confidence building matches. So one

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Speaker 4: of the things that she's agreed on is that the

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Speaker 4: United States and China are going to promote.

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Speaker 5: Travel, right, tourism.

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Speaker 4: So who can disagree that it would be a good

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Speaker 4: thing if more Americans went to China and more Chinese

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Speaker 4: people came to the United States. Right, It builds trust,

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Speaker 4: builds understanding people to people relations. You know, these countries

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Speaker 4: have been separated now for three years under under lockdown.

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Speaker 5: Very few flights.

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Speaker 4: Now, I was in Beijing a couple of months ago.

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Speaker 4: I was actually staying in four seasons hotel. Only foreigner

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Speaker 4: in the in the whole hotel, right, I mean, the

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Speaker 4: airport is half empty.

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Speaker 6: We need more interaction and it's.

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Speaker 5: Just a great place, a smart place to stop.

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Speaker 3: Well, Andy, talk more about that, and give us some

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Speaker 3: anecdotes from your recent trip there, because you've spent so

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Speaker 3: much time in the country. Uh, I know this is

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Speaker 3: post pandemic. You went there kind of during the pandemic too,

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Speaker 3: when you were helping with you know, with the Olympics

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Speaker 3: for NBC. But but just give us the differences that

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Speaker 3: you see now based on your recent trip.

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Speaker 1: Yeah.

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Speaker 5: Well, I mean you've got to go.

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Speaker 4: I mean you have to go there to feel this,

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Speaker 4: the sense you get by talking to people on the street,

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Speaker 4: my friends, people in the business community, people are kind

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Speaker 4: of in shock, you know.

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Speaker 5: I mean I understand this.

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Speaker 4: You know, the the the the you know, the consumer

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Speaker 4: confidence has really been shattered. I mean, people, I think

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Speaker 4: feel really kind of discombind this disoriented.

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Speaker 5: I mean, what just happened.

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Speaker 4: You know, we went through a three a three year lockdown,

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Speaker 4: and it was quite painful. I mean, you talk to

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Speaker 4: people in Shanghai. They're suffering from something like post traumatic

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Speaker 4: stress disorder.

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Speaker 5: Right.

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Speaker 4: These are these are you know, middle class, upper middle

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Speaker 4: class families that didn't know if they were going to

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Speaker 4: spend that night in bed in their own homes or

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Speaker 4: be carted away to some isolation center, or if their

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Speaker 4: kids would be taken from them, or if guys in

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Speaker 4: white hazmat suits were going to burst through the front door,

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Speaker 4: you know, and drag them out or put a lock

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Speaker 4: on the outside of the door. They didn't know sometimes

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Speaker 4: if they could even feed their families, right, And they've

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Speaker 4: been so used to a government that looks after all this,

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Speaker 4: that you know, is focused.

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Speaker 5: On growth, focused.

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Speaker 6: On on you know, on.

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Speaker 4: Development, and it just seems like, you know, they're lurching

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Speaker 4: from one blunder to another. And you know, the business,

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Speaker 4: business confidence obviously is has has yet to recover, and

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Speaker 4: the and the confidence of foreign investors. And that's what

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Speaker 4: Gina Raimondo was was speaking to. You know, people got

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Speaker 4: so used to the idea that Chinese supply chains were secure, right,

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Speaker 4: and you could put them all in China. That's what

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Speaker 4: Apple did the whole lot. And look what Apple's doing now.

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Speaker 4: You know, it's starting at the margins, pulling it out,

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Speaker 4: you know, putting it in places like Vietnam, India. It's

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Speaker 4: all about now de risking.

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Speaker 2: Back to Andy Brown, we go as you as we

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Speaker 2: said earlier, he leads the China Hub. He's a partner

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Speaker 2: over at Brunswick Group. Hosta with us on Zoom in

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Speaker 2: New York City and you had the break.

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Speaker 7: Yeah.

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Speaker 3: My question, my question, Andy, is if China is doing

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Speaker 3: so poorly in its attempted recovery from three years of lockdowns,

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Speaker 3: if the consumer is so weak, if the concerns about

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Speaker 3: shadow banks crumbling and not paying people back, do American

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Speaker 3: companies really want to invest in China?

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Speaker 4: You know, Tim, I think it's so important to put

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Speaker 4: this into perspective. China is not collapsing, okay, China is

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Speaker 4: suffering from what some people.

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Speaker 5: Call the four d's.

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Speaker 4: You've got a demographic crisis, you have a debt crisis,

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Speaker 4: you have a decoupling problem, you have a deflation problem.

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Speaker 4: The headlines look terrible, and it is extraordinary.

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Speaker 5: China.

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Speaker 4: The Chinese economy is barely growing right now, and the

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Speaker 4: US economy is steaming ahead.

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Speaker 5: I think it's growing what six percent?

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Speaker 6: A complete role reversal.

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Speaker 5: Right, but.

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Speaker 4: China is the world's second largest economy, and it's going

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Speaker 4: to be the second or third largest economy for decades

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Speaker 4: to come.

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Speaker 5: Right, it's not going away. I think what we can expect.

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Speaker 4: Big, big, big picture, a starting now a period of

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Speaker 4: slow relative decline. Businesses still must be in China, right,

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Speaker 4: they can't ignore China, and particularly the businesses that are

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Speaker 4: relying on China for future growth luxury, chemicals, auto and

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Speaker 4: so on. In those industries they're pouring investment in.

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Speaker 5: They have to.

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Speaker 4: I mean, you can't be half hearted in China. You've

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Speaker 4: got to be all in because the competition there is

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Speaker 4: really good. So if you're there and you're dependent on growth,

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Speaker 4: you have to invest to keep up with the market.

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Speaker 4: You have to invest in technology so that you're able

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Speaker 4: to compete. And in fact, some of these companies have

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Speaker 4: an aggressive strategy of investment. It's called in China for

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Speaker 4: China right So they're buying local companies, they're investing in technology.

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Speaker 4: If you don't have to be in China right now,

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Speaker 4: you don't want to be in China. If you've never

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Speaker 4: been in China, you're certainly not going to go there

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Speaker 4: for the first time now. And if you are in China,

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Speaker 4: money investment that you might have put into China over

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Speaker 4: and above the need to fuel and fund your footprint there,

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Speaker 4: you're now looking at that money and say where else

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Speaker 4: could I put it?

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Speaker 5: Should I put it.

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Speaker 4: In Vietnam, or in India, or in Mexico, or I

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Speaker 4: might say here in the United States, which is one

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Speaker 4: of the hardest investment destinations in the world right now?

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Speaker 2: So do you believe and in your consulting that you

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Speaker 2: do with clients, Andy, I mean, is it right though?

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Speaker 2: For the US and nations throughout Europe that have slapped

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Speaker 2: trade and regulatory penalties on China. You know their claims

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Speaker 2: that it's coercive economic market behavior, if you will, are

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Speaker 2: they right to do so? Especially when you've got the

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Speaker 2: world's second largest economy kind of going through tough times,

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Speaker 2: like what's the balance between that.

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Speaker 4: Yeah, you know, look, Carol, I mean it is in

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Speaker 4: nobody's interest to drive China further in where the country

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Speaker 4: is looking in with now right and they feel threatened,

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Speaker 4: they feel under sieged.

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Speaker 5: This is in nobody's interest.

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Speaker 6: It's in nobody's.

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Speaker 4: Interest now to exacerbate its economic downturn. It's in nobody's

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Speaker 4: that China should want to build its own institutions and

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Speaker 4: undermine the global US led system, so, you know, and

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Speaker 4: they do feel that they are under siege.

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Speaker 5: And look, I get it that there.

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Speaker 4: Are internal trends in China that you know, are encouraging

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Speaker 4: this move towards in you know, this this focus, a

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Speaker 4: relentless focus on national security, but can one also has

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Speaker 4: to understand that China is responding also to actions that

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Speaker 4: the United States is taking that make it feel that

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Speaker 4: the world of the United States is out to get them.

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Speaker 4: So you know, they look at this meeting that the

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Speaker 4: curtain Camp David with Japan and South Korea and the

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Speaker 4: United States, and this just adds to the sense of containment.

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Speaker 5: So that's not in anybody.

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Speaker 4: And there are a lot of people that are saying, look,

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Speaker 4: you know, maybe it's time for a time out on

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Speaker 4: some of this. You know, would it be such a

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Speaker 4: bad idea to lift the tariffs on China, which, after all,

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Speaker 4: I'm achieving any of their objectives of narrowing the trades

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Speaker 4: up plus and in fact of being paid for in

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Speaker 4: the end by the US consumer. And frankly, I think

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Speaker 4: that this was this was something you know, some of

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Speaker 4: that sentiment is is exactly what Gina Raymondo was expressing

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Speaker 4: in her visit to China.

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Speaker 5: We do the United States and China does two billion.

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Speaker 4: Dollars a day of trade, you know, and she said, look,

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Speaker 4: this trade is good for China, good for the United States,

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Speaker 4: and good for the and good for the world. So

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Speaker 4: you know, let's let's put some of this in proportion.

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Speaker 2: And because can I just wait, follow if the world's

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Speaker 2: second largest economy creator, we're going to feel it right

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Speaker 2: here in the United States.

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Speaker 4: You are, but it's not going to create it, Okay.

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Speaker 4: I think the way to think about it is that,

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Speaker 4: you know, China is a giant, right, it is an

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Speaker 4: economic giant. It's it's manufacturing sector is bigger than the

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Speaker 4: United States and Europe combined. Okay, and this year it's

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Speaker 4: going to It's going to leap ahead of Japan to

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Speaker 4: become the world's largest auto export. It's gobbling up the

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Speaker 4: world's evy markets. It's a giant, but it's a giant

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Speaker 4: with a weak heart, Okay, And that's going to make

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Speaker 4: it less mobile, it's going to make it more prone

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Speaker 4: to crisis.

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Speaker 5: But it's still a giant.

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Speaker 3: Andy this This is Secretary Romando's trip is coming at

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Speaker 3: a time when we learned also that Vladimir Putin has

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Speaker 3: agreed to visit China in his first trip since the

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Speaker 3: ICC War crimes warrant was issued back in March. How

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Speaker 3: should we look at China's embrace of Vladimir Putin and

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Speaker 3: how that affects relations between the US and China.

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Speaker 4: Yeah, this is this is an interesting visit. This This

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Speaker 4: will be his first truly internet. He's been to a

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Speaker 4: couple of neighboring countries in Central Asia, he went to Iran,

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Speaker 4: but this is the first major international trip that he's

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Speaker 4: taken since the International Criminal Court and A indicted him

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Speaker 4: on on on war crime charges earlier this year. And

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Speaker 4: what this is telling us is the Chinese are not

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Speaker 4: giving up on Vladimir Putin. He was and remains what

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Speaker 4: chi Jin being calls my best friend, regardless of you

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Speaker 4: know what's happening in Ukraine. And look, I was in Beijing.

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Speaker 4: You mentioned the Winter Olympics at the beginning of the

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Speaker 4: beginning of last year, and this was where they hatched

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Speaker 4: their no Limits partnership. Right on the opening day of

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Speaker 4: Beijing Winter Olympics on February fourth, you know, games finished

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Speaker 4: on February twentieth. Four days later, February twenty fourth, the

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Speaker 4: tanks and armor and troops roll across the border into Ukraine,

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Speaker 4: and ever since then China has been giving Russia diplomatic

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Speaker 4: cover in the Ukraine. The bottom line is that they

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Speaker 4: can't have Putin failing in China. It would be a

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Speaker 4: severe blow personally Tsijim, but also the way they look

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Speaker 4: at it in China is, look, you know, if US

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Speaker 4: led NATO win here, win next, all right, and and

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Speaker 4: so you know, bottom light, they cannot allow him to fail.

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Speaker 2: It's complicated, right Andy though.

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Speaker 4: It's super complicated because they're paying a pretty heavy price

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Speaker 4: for this. And we talk about business investment. European business

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Speaker 4: is looking at looking at China. Now they're reading right

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Speaker 4: over from Ukraine to Taiwan. And saying, you know, we

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Speaker 4: made this big bet on Russia and look where it

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Speaker 4: got us.

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Speaker 6: And you know we make making an even bigger bet

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Speaker 6: on China.

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Speaker 5: Governments are looking at European governments are.

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Speaker 6: Looking at China in a very different way, you know.

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Speaker 4: I mean, this is Putin is Europe's public enemy number one,

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Speaker 4: and this is you know, Chi Jinping's best friend. Having

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Speaker 4: said that, I mean, there's there's quite a bit that

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Speaker 4: they can salvage out of this number one.

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Speaker 5: You know, they're going to have a role.

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Speaker 4: They they will have a role in any peace agreement,

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Speaker 4: and they'll certainly have a big role, one would think,

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Speaker 4: in the reconstruction of Ukraine if and when we finally

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Speaker 4: get a peace in that country.

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Speaker 2: Yeah, all right, listen, thank you so much. So appreciate it.

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Speaker 2: We know it's all been busy for everybody, but so

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Speaker 2: do appreciate whenever we get time with you. Andy bwall

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Speaker 2: Andy Brown, as we said before, leads the China Hub

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Speaker 2: as a partner at Brunswick Group and former Bloomberg colleague,

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Speaker 2: former editorial director at Bloomberg New Economy. But as we said,

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Speaker 2: three decades in Asia, China editor our communist for The

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Speaker 2: Wall Street journal, So his experience is on the ground

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Speaker 2: experience and really understanding it all.

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Speaker 3: We have the data. We like to get the anecdotes

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Speaker 3: from Andy two from his trips there totally.

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Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us

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Speaker 1: Live weekday afternoons from three to six Eastern Listen on

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Speaker 1: Bloomberg dot com, the iHeartRadio app, and the Bloomberg Business App. Well,

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Speaker 1: want us Live on YouTube?

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Speaker 2: So would you want to talk about the Hurricane Adela?

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Speaker 3: Is it right to daily Hidelia?

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Speaker 8: Delia too?

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Speaker 2: Sounded great in my ear anyway. More importantly, knocking out

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Speaker 2: power to one hundreds of thousands of customers, grounding more

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Speaker 2: than eight hundred flights, unleashing floods along Florida's coast far

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Speaker 2: from where it came ashore as a category Threames three

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Speaker 2: storm earlier Wednesday. So we've been all tracking it. I'm

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Speaker 2: sure you all have seen it on news, no doubt

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Speaker 2: about it.

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Speaker 3: Yeah, and Carol, you know, we track how much this

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Speaker 3: stuff costs very closely because they're serious economic implications for

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Speaker 3: disruptions and for repairs caused by storms. We talked about

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Speaker 3: it with Hawaii. Estimates two are starting to come out

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Speaker 3: about the cost of this storm, and key research says

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Speaker 3: that IMMED lead to ten billion dollars in losses. And

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Speaker 3: we know our team has already warned about FEMA running

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Speaker 3: out of money following the fire in Hawaii.

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Speaker 2: All right, so let's get to it. Lee Mayfield is

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Speaker 2: with us. He's director of Response at the Emergency Management

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Speaker 2: Consulting from hagrid Y Consulting. Also the former director of

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Speaker 2: Public Safety and Emergency Management for Lee County, Florida, which

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Speaker 2: includes Cape Coral and Fort Myers. He joins us on

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Speaker 2: the phone from Tampa. Also with us as Rob Caroline.

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Speaker 2: He's a Bloomberg News meteorologist. He joins us on the

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Speaker 2: phone in New York. Rob, I do want to start

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Speaker 2: with you. What's the latest on the storm and what

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Speaker 2: you are seeing.

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Speaker 9: We're seeing in the process of working its way towards

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Speaker 9: the Brunswick, Georgia area. Carrol, It's now causing wing dust

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Speaker 9: in the vicinity of Brunswick. It's sixty miles an hour

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Speaker 9: at Douglas, Georgia also reporting sixty mile hour dust moving

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Speaker 9: off to the northeast at twenty miles an hour. There's

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Speaker 9: a tornado watch that's an effect from the coastal areas

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Speaker 9: of northeastern Georgia, along the South Carolina coast and into

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Speaker 9: southeastern North Carolina. That's up through nine o'clock this seasoning.

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Speaker 9: The worst of the weather in regards to rain is

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Speaker 9: north and northeast of that center of circulation that's west

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Speaker 9: of Brunswick, Georgia. We're going to see four to eight

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Speaker 9: inches of rain across that area over the next twenty

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Speaker 9: four hours, which is going to lead to flash flooding

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Speaker 9: near the core of what was the eye of the storm.

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Speaker 9: That's where the highest winds are. You just mentioned the

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Speaker 9: power outages. You look at the track map, you look

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Speaker 9: at the power outages. They match right up from where

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Speaker 9: it when inland at each Florida this morning and where

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Speaker 9: it is now. Over the next six to twelve hours,

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Speaker 9: the track will change from northeast to east northeast, so

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Speaker 9: it's going to allow the storm to move across northeastern

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Speaker 9: Georgia then up through eastern South Carolina tonight. Computer models

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Speaker 9: the latest ones coming in have the storm then exiting

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Speaker 9: the US coast just east of Wilmington, North Carolina, around

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Speaker 9: seven o'clock tomorrow morning.

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Speaker 3: So after seven o'clock tomorrow morning, rob Is. I mean,

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Speaker 3: the worst of it is behind us.

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Speaker 9: The worst of it will behind us. We'll notice that

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Speaker 9: it's probably going to become a strong tropical storm overnight

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Speaker 9: because the core is still inland. So what's happening is

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Speaker 9: those wings of one hundred and twenty five miles now

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Speaker 9: made landfall this morning are slowly winding down. We'll probably

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Speaker 9: still see some dust up over hurricane fourth strength leader

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Speaker 9: tonight into tomorrow morning, especially along the South and North

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Speaker 9: Carolina coast. The outer banks will probably see those type

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Speaker 9: of wings. But once it gets out into the Atlantic,

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Speaker 9: all the really heavy rain that we're seeing north and

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Speaker 9: northeast of the center will push out into the Atlantic

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Speaker 9: and the flesh issues will go away. The only remaining

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Speaker 9: issues will be some winds through midday tomorrow along the

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Speaker 9: coast of North Carolina, and it's not as far south

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Speaker 9: as Myrtle Beach, South Carolina.

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Speaker 2: Hey, one thing I want to get into Listen, we

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Speaker 2: have storms, and we've had, you know, my whole lifetime hurricanes.

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Speaker 2: We have hurricane season and I'm not playing light to it.

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Speaker 2: And I you know, there's lives at risk, and hope

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Speaker 2: everyone that is in the path of this storm does okay.

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Speaker 2: But what I want to get to with you, Lee,

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Speaker 2: and then Rob way in on this as well, is

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Speaker 2: in terms of what we increasingly are seeing in terms

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Speaker 2: of the frequency, strength, force, and the impact and the

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Speaker 2: amount of damage done by storms, and how climate change

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Speaker 2: plays into it. Lee, how are you thinking about it

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Speaker 2: bigger broadly and what worries you?

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Speaker 8: Sure?

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Speaker 7: Great question, you know, I think it's it's been almost

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Speaker 7: a year since Hurricane Ian last year in the southwest

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Speaker 7: Florida area, and here we are again. So I think

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Speaker 7: this is part of our new reality. We've seen to

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Speaker 7: have had a very busy five year period, especially when

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Speaker 7: it comes to these devastatingcanes, and this one is no different.

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Speaker 7: Idalia is an incredibly catastrophic storm. So I think really

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Speaker 7: brings front and center this idea of resiliency and recovery

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Speaker 7: and what does that look like moving forward as we

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Speaker 7: see more of these storms?

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Speaker 3: Well, what does resiliency look like?

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Speaker 9: Does it?

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Speaker 3: Does it look like actually people not living in places

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Speaker 3: there they've traditionally livedly.

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Speaker 7: You know, it's a team effort. You know, this business

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Speaker 7: and emergency management and resiliency takes a lot of different players.

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Speaker 7: You know, local jurisdiction, state, federal government. NGO's private sector

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Speaker 7: funding is a big component of this. So I think

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Speaker 7: that's something we have to seriously look at how we

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Speaker 7: fund these larger projects as we look towards resiliency and

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Speaker 7: mitigation moving forward.

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Speaker 2: Well, and Rob come on in come back into the

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Speaker 2: conversation in terms of the frequency and the volatility and

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Speaker 2: the damage and the strength that we are seeing increasingly

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Speaker 2: with the storms that impact the United States and really

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Speaker 2: the world at large, but the US that we've seen,

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Speaker 2: I mean, look at what happened on the West Coast.

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Speaker 2: A storm just doesn't happen and there it happened. Just

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Speaker 2: was it a week ago or so? Should we be

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Speaker 2: thinking as a nation about not building on certain areas

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Speaker 2: because it's just getting tougher and tougher for people to

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Speaker 2: exist there.

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Speaker 9: Well, that makes sense just from the fact that you know,

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Speaker 9: barrier islands of the coast are temporary landforms. You know,

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Speaker 9: they're not really meant to be built on. The last

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Speaker 9: time we saw a hurricane or tropical storms at the

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00:22:19,720 --> 00:22:22,480
Speaker 9: West Coast was September of nineteen thirty nine. One of

442
00:22:22,520 --> 00:22:24,959
Speaker 9: the things we meteorologists are aware of, and the hurricane

443
00:22:25,040 --> 00:22:28,760
Speaker 9: cycle is there's a thirty year cycle with hurricanes, so

444
00:22:28,920 --> 00:22:31,240
Speaker 9: the last peak rands through the nineteen fifties into the

445
00:22:31,320 --> 00:22:33,520
Speaker 9: nineteen seventies. We had a tremendous amount of storms go

446
00:22:33,640 --> 00:22:37,320
Speaker 9: up the East coast. In the nineteen fifties we had Hazel, Carrol, Donna.

447
00:22:37,560 --> 00:22:39,879
Speaker 9: They all occurred in less than ten years. We're now

448
00:22:39,960 --> 00:22:42,320
Speaker 9: in the midst of another very active cycle that should

449
00:22:42,320 --> 00:22:44,600
Speaker 9: start to end in the mid twenty twenties. It's been

450
00:22:44,680 --> 00:22:47,920
Speaker 9: running since the mid nineteen nineties and starts to decrease

451
00:22:48,200 --> 00:22:51,040
Speaker 9: around twenty five or twenty six, so we've got a

452
00:22:51,040 --> 00:22:52,760
Speaker 9: couple more years with that. The other thing that we

453
00:22:52,880 --> 00:22:55,320
Speaker 9: really have to take a look at is the oceans

454
00:22:55,520 --> 00:22:58,280
Speaker 9: on this planet are getting warmer. We're in a very

455
00:22:58,400 --> 00:23:02,880
Speaker 9: warm cycle. The exist to do one thing, move heat

456
00:23:03,119 --> 00:23:06,800
Speaker 9: from the tropical regions of the world to the polar regions.

457
00:23:07,119 --> 00:23:09,359
Speaker 9: That's why they move around the Bermuda high They take

458
00:23:09,440 --> 00:23:12,080
Speaker 9: that excess warmth that develops over the oceans during the

459
00:23:12,119 --> 00:23:14,840
Speaker 9: summer and pushes it to the poles their heat engines,

460
00:23:14,880 --> 00:23:18,479
Speaker 9: so they're trying to redistribute heat. The warmer the oceans are,

461
00:23:18,920 --> 00:23:20,879
Speaker 9: the stronger, these systems are going to be and the

462
00:23:20,960 --> 00:23:22,879
Speaker 9: other thing I've noticed I've been doing this for a

463
00:23:22,920 --> 00:23:25,719
Speaker 9: little over thirty years in my career, the fact they

464
00:23:25,760 --> 00:23:29,600
Speaker 9: are intensifying much more rapidly. From Katrina in two thousand

465
00:23:29,640 --> 00:23:33,240
Speaker 9: and five becoming a storm of you know, incredible magnitude

466
00:23:33,359 --> 00:23:34,960
Speaker 9: thirty six hours, it went from a Cat one to

467
00:23:35,040 --> 00:23:37,320
Speaker 9: a Cat five. We had the same problem several years

468
00:23:37,359 --> 00:23:40,760
Speaker 9: ago with Irma and Maria. They became Category five hurricanes

469
00:23:40,800 --> 00:23:41,040
Speaker 9: in just.

470
00:23:41,080 --> 00:23:41,680
Speaker 8: A few days.

471
00:23:42,000 --> 00:23:44,800
Speaker 9: This storm went over waters that were ninety degrees or

472
00:23:44,920 --> 00:23:47,520
Speaker 9: warmer over its seventy two hours in existence. And that's

473
00:23:47,560 --> 00:23:49,480
Speaker 9: how you get a storm to go from a Cat

474
00:23:49,600 --> 00:23:53,479
Speaker 9: one to a Cat or overnight. It's lee ocean driving

475
00:23:53,560 --> 00:23:54,080
Speaker 9: this problem.

476
00:23:54,280 --> 00:23:56,200
Speaker 3: Lead weigh in on that. Do you agree with with

477
00:23:56,359 --> 00:23:58,879
Speaker 3: Rob that this is this is the warmer oceans are

478
00:23:58,920 --> 00:24:01,000
Speaker 3: doing this and it's intensified throughout your career as well.

479
00:24:02,119 --> 00:24:05,720
Speaker 7: Yeah, we've certainly seen this idea of rapid intensification. It's

480
00:24:05,880 --> 00:24:09,320
Speaker 7: just really a big fear even of emergency managers. You know,

481
00:24:09,640 --> 00:24:12,000
Speaker 7: Hurricane Michael comes to mind, and this one here is

482
00:24:12,040 --> 00:24:14,760
Speaker 7: no different this week. You know, you're having to make

483
00:24:14,840 --> 00:24:19,040
Speaker 7: decisions very quickly when these storms rapidly intensify and that's

484
00:24:19,080 --> 00:24:22,280
Speaker 7: something that is difficult to do from a timing perspective

485
00:24:22,560 --> 00:24:24,840
Speaker 7: and definitely a concern that we're having to deal with

486
00:24:25,000 --> 00:24:25,880
Speaker 7: more in our profession.

487
00:24:26,160 --> 00:24:28,000
Speaker 2: All Right, we're going to leave it on that note. Listen, guys,

488
00:24:28,080 --> 00:24:30,320
Speaker 2: thank you so much for weighing in on all of

489
00:24:30,400 --> 00:24:33,760
Speaker 2: this and giving us some perspective. So appreciate it. Lee Mayfield,

490
00:24:33,920 --> 00:24:38,040
Speaker 2: director of Response at the emergency management consulting firm Hagridy Consulting.

491
00:24:38,160 --> 00:24:40,119
Speaker 2: As we said, also former director of Public Safety and

492
00:24:40,160 --> 00:24:42,920
Speaker 2: Emergency Management for Lee Keunny, Florida, and our thanks to

493
00:24:43,000 --> 00:24:45,040
Speaker 2: Rob Carolyn. He's a well known voice when it comes

494
00:24:45,080 --> 00:24:47,000
Speaker 2: to covering what's going on in the weather. A Bloomberg

495
00:24:47,040 --> 00:24:49,800
Speaker 2: News meteorologist joining us, both of them on the phone.

496
00:24:49,840 --> 00:24:52,280
Speaker 2: One in New York, Rob there, and of course Lee

497
00:24:52,480 --> 00:24:53,119
Speaker 2: in Tampa.

498
00:24:53,960 --> 00:24:57,479
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us

499
00:24:57,560 --> 00:25:01,520
Speaker 1: live weekday afternoons from three to sixty on Bloomberg Radio,

500
00:25:01,760 --> 00:25:05,000
Speaker 1: the Bloomberg Business App and YouTube. You can also listen

501
00:25:05,160 --> 00:25:08,240
Speaker 1: live on Amazon Alexa from our flagship New York station,

502
00:25:08,680 --> 00:25:11,440
Speaker 1: Just Say Alexa playing Bloomberg eleven thirty.

503
00:25:19,720 --> 00:25:22,880
Speaker 2: Got a head bang going on in our studio, Hey,

504
00:25:24,000 --> 00:25:27,119
Speaker 2: We're talking cities stores already beginning to trickle out from

505
00:25:27,119 --> 00:25:29,760
Speaker 2: the upcoming new double Cities issue of Bloomberg Business Week,

506
00:25:29,840 --> 00:25:32,520
Speaker 2: out in its entirety on newsstands tomorrow, online at Bloomberg

507
00:25:32,520 --> 00:25:35,320
Speaker 2: dot com slash Business Weekend on the Bloomberg and Tim

508
00:25:35,359 --> 00:25:37,880
Speaker 2: we heard one of the stories from the issue yesterday.

509
00:25:37,960 --> 00:25:38,960
Speaker 2: It was incredible.

510
00:25:39,160 --> 00:25:40,800
Speaker 3: Yeah, it was about the seven hundred and fifty acre

511
00:25:40,920 --> 00:25:43,560
Speaker 3: Jericho Gate development. It's part of the fragile real estate

512
00:25:43,600 --> 00:25:46,920
Speaker 3: boom emerging in Palestinian territories. We talked all about it

513
00:25:47,040 --> 00:25:49,800
Speaker 3: with the Bloomberg News Israel Bureau chief Ethan Browner, also

514
00:25:49,880 --> 00:25:53,240
Speaker 3: Bloomberg BusinessWeek editor Joel Weber, who is also back with

515
00:25:53,359 --> 00:25:53,720
Speaker 3: us today.

516
00:25:53,840 --> 00:25:56,800
Speaker 2: He is, indeed, along with the BusinessWeek Technology editor Joshua

517
00:25:56,840 --> 00:26:00,400
Speaker 2: Brustin and Bloomberg City Lab editor David Dudley. So let's

518
00:26:00,400 --> 00:26:03,440
Speaker 2: get into the city's issue. Joe jointing us from Massachusetts,

519
00:26:03,480 --> 00:26:05,800
Speaker 2: Joshua us here in our Bloomberg Interactive Broker studio, and

520
00:26:05,880 --> 00:26:08,680
Speaker 2: David on zoom from our Washington DC bureau and Joel

521
00:26:08,720 --> 00:26:10,440
Speaker 2: we were, you know, kidding Tim and I earlier that

522
00:26:10,480 --> 00:26:12,920
Speaker 2: we kind of know certain times of the year we

523
00:26:13,359 --> 00:26:15,600
Speaker 2: look forward to the city's Issue because you just take

524
00:26:15,760 --> 00:26:17,879
Speaker 2: us I said it yesterday, You take us to parts

525
00:26:18,000 --> 00:26:19,879
Speaker 2: of the world that maybe we don't talk about but

526
00:26:19,960 --> 00:26:20,680
Speaker 2: we really should be.

527
00:26:21,880 --> 00:26:25,639
Speaker 10: Yeah, and this has like just been a little source

528
00:26:25,680 --> 00:26:29,560
Speaker 10: of pride for us because we've long done a city's issue,

529
00:26:29,840 --> 00:26:33,280
Speaker 10: and then Bloomberg acquired City Lab and we were like, wow,

530
00:26:33,520 --> 00:26:37,680
Speaker 10: now we can really make cities issues even that much better.

531
00:26:38,240 --> 00:26:43,720
Speaker 10: And obviously Josh led the effort at the magazine. And

532
00:26:43,880 --> 00:26:46,240
Speaker 10: when we started talking about this, I was like, you know,

533
00:26:46,359 --> 00:26:47,960
Speaker 10: we don't have to kill ourselves. We don't need to

534
00:26:48,040 --> 00:26:50,119
Speaker 10: go big. And Josh was like, actually, I was planning

535
00:26:50,119 --> 00:26:51,960
Speaker 10: going to do like a full issue takeover, and I

536
00:26:52,040 --> 00:26:53,920
Speaker 10: have like all these amazing stories, and I was like,

537
00:26:54,000 --> 00:26:56,560
Speaker 10: oh my god, this is going to be amazing. So

538
00:26:56,920 --> 00:26:59,399
Speaker 10: he tested it, and I think, you know, part of

539
00:26:59,440 --> 00:27:03,280
Speaker 10: the framing we wanted to look at here is look here,

540
00:27:03,359 --> 00:27:06,800
Speaker 10: we are a couple of years after COVID, although hey,

541
00:27:07,200 --> 00:27:10,560
Speaker 10: cases still ticking back up and and cities are still

542
00:27:10,640 --> 00:27:13,200
Speaker 10: in that aftermath, and and we wanted to kind of

543
00:27:13,280 --> 00:27:15,639
Speaker 10: like look at a few of the ways that that's

544
00:27:15,720 --> 00:27:18,560
Speaker 10: continued to play out and then find some of those

545
00:27:18,640 --> 00:27:21,800
Speaker 10: really startling amazing stories that I'm sure we'll spend a

546
00:27:21,800 --> 00:27:24,160
Speaker 10: little bit more time talking about, including yesterday. But Josh,

547
00:27:24,920 --> 00:27:27,160
Speaker 10: where were the places that when you sort of architected

548
00:27:27,200 --> 00:27:29,560
Speaker 10: and you started from blank white pages and these exercises

549
00:27:29,640 --> 00:27:31,320
Speaker 10: like where did you want to make sure that we

550
00:27:31,440 --> 00:27:32,600
Speaker 10: got to visit?

551
00:27:34,000 --> 00:27:34,200
Speaker 8: Yeah?

552
00:27:34,400 --> 00:27:37,879
Speaker 11: I think there were a couple of things for the

553
00:27:37,960 --> 00:27:40,480
Speaker 11: last Today's issue. Actually, I had written about the idea

554
00:27:40,480 --> 00:27:42,280
Speaker 11: of trying to build a new city from scratch, and

555
00:27:42,400 --> 00:27:44,879
Speaker 11: so I know there's been a lot of effort around

556
00:27:44,920 --> 00:27:47,200
Speaker 11: the world to do this. And on my list of

557
00:27:47,240 --> 00:27:49,520
Speaker 11: places to look at was a place called Forest City

558
00:27:49,600 --> 00:27:54,560
Speaker 11: in Malaysia, which is a city that is being constructed

559
00:27:54,680 --> 00:27:57,159
Speaker 11: on what will eventually be if all goes according to

560
00:27:57,240 --> 00:28:01,320
Speaker 11: plan for artificial islands, have about seven hundred thousand people

561
00:28:01,359 --> 00:28:06,040
Speaker 11: on it. And the interesting thing about this city is

562
00:28:06,119 --> 00:28:08,000
Speaker 11: that it was all based on the idea that the

563
00:28:08,080 --> 00:28:11,480
Speaker 11: Chinese real estate market is just booming. It was being

564
00:28:11,560 --> 00:28:14,400
Speaker 11: built by Country Garden, which whose name you might recognize

565
00:28:14,440 --> 00:28:15,560
Speaker 11: if you've been paying attention.

566
00:28:15,359 --> 00:28:17,119
Speaker 2: To the No, we never talk about it.

567
00:28:17,960 --> 00:28:20,560
Speaker 3: China real estate market booming and Country Garden are two

568
00:28:20,600 --> 00:28:21,919
Speaker 3: things we talk about quite a bit.

569
00:28:22,080 --> 00:28:25,760
Speaker 11: Yes, we do go ahead so one of the islands

570
00:28:25,840 --> 00:28:30,440
Speaker 11: has been constructed. There is uh, there's room for not

571
00:28:30,720 --> 00:28:33,159
Speaker 11: seven hundred thousand residents, but certainly I think in the

572
00:28:33,240 --> 00:28:36,960
Speaker 11: tens of thousands. And things have kind of ground to

573
00:28:37,000 --> 00:28:40,360
Speaker 11: a halt. They've ran into trouble with COVID there. Now

574
00:28:40,440 --> 00:28:44,080
Speaker 11: there's serious questions about demand, and so we sent a

575
00:28:44,160 --> 00:28:47,280
Speaker 11: really talented reporter there to look around, to talk to people,

576
00:28:47,880 --> 00:28:50,360
Speaker 11: and just to kind of see what is happening with

577
00:28:50,440 --> 00:28:51,960
Speaker 11: one of these big audacious projects.

578
00:28:53,000 --> 00:28:58,000
Speaker 10: Yeah, that real estate element attached to China, and it

579
00:28:58,160 --> 00:29:00,360
Speaker 10: just really was a timely look at a place that

580
00:29:01,040 --> 00:29:04,520
Speaker 10: you know, I think we're all very very curious and

581
00:29:04,600 --> 00:29:07,880
Speaker 10: concerned about. So David that I want to bring you

582
00:29:08,000 --> 00:29:11,440
Speaker 10: in because the City Lub was obviously totally instrumental in this.

583
00:29:11,640 --> 00:29:14,360
Speaker 10: There was there was an idea that josh and I

584
00:29:14,520 --> 00:29:17,560
Speaker 10: were noodling, and then josh was like, actually I talked

585
00:29:17,560 --> 00:29:19,520
Speaker 10: to David and we should do what they're doing. I

586
00:29:20,000 --> 00:29:22,160
Speaker 10: was obsessed with concrete. I was like, we got to

587
00:29:22,200 --> 00:29:24,560
Speaker 10: do a story about concrete, like so much of the

588
00:29:24,640 --> 00:29:25,880
Speaker 10: world uses that as a building.

589
00:29:26,040 --> 00:29:28,160
Speaker 2: Do you hear what Joshua just you just said? That's true.

590
00:29:30,640 --> 00:29:32,680
Speaker 10: I was like, let me tell you about concrete, Josh,

591
00:29:34,040 --> 00:29:36,480
Speaker 10: But but David, tell us about where where we went

592
00:29:36,560 --> 00:29:38,520
Speaker 10: with that initial Colonel.

593
00:29:39,960 --> 00:29:42,520
Speaker 12: Yeah, sure, and thanks for playing playing the fog at

594
00:29:42,600 --> 00:29:45,080
Speaker 12: to get us in here. We are we are fools

595
00:29:45,080 --> 00:29:48,640
Speaker 12: for the city here at City Labs. So so yeah,

596
00:29:48,760 --> 00:29:51,720
Speaker 12: So we had this project going where we were similarly

597
00:29:51,840 --> 00:29:54,600
Speaker 12: kind of intrigued by and sort of astonished by the

598
00:29:54,680 --> 00:29:59,920
Speaker 12: amazing kind of energy intensity of concrete production, which is,

599
00:30:00,320 --> 00:30:02,920
Speaker 12: you know, something like eight nine percent of all carbon

600
00:30:03,240 --> 00:30:06,880
Speaker 12: released in the atmosphere every year, and it's rivaled by

601
00:30:07,440 --> 00:30:10,880
Speaker 12: steel production, and in many countries brick production, which is

602
00:30:10,880 --> 00:30:14,640
Speaker 12: an even older material, is also intensely polluting. And so

603
00:30:14,840 --> 00:30:16,760
Speaker 12: we had been dueling around with this idea of having

604
00:30:16,800 --> 00:30:20,080
Speaker 12: a whole series about what we call the Stuff of Cities,

605
00:30:20,120 --> 00:30:23,520
Speaker 12: which is just sort of a dive into the history

606
00:30:23,600 --> 00:30:25,440
Speaker 12: and the past and the present in the future of

607
00:30:25,960 --> 00:30:29,120
Speaker 12: the most essential building blocks of urban life.

608
00:30:30,120 --> 00:30:31,040
Speaker 8: And we were able to.

609
00:30:31,200 --> 00:30:33,920
Speaker 12: Sort of convert that idea into this really lovely looking

610
00:30:34,040 --> 00:30:38,120
Speaker 12: kind of print and online package that looks at not

611
00:30:38,360 --> 00:30:43,120
Speaker 12: only concrete and steel and brick, but also glass and

612
00:30:43,280 --> 00:30:46,880
Speaker 12: asphalt and wood sort of the oldest material of the

613
00:30:47,480 --> 00:30:50,960
Speaker 12: six that is kind of coming back into vogue as

614
00:30:51,000 --> 00:30:55,400
Speaker 12: a kind of economically and environmentally useful building material for

615
00:30:55,520 --> 00:30:57,240
Speaker 12: all kinds of skyscapers.

616
00:30:57,240 --> 00:30:58,880
Speaker 2: Well, David, I don't want to get jo upset since

617
00:30:58,920 --> 00:31:02,240
Speaker 2: he's really into concrete, But what is replacing concrete?

618
00:31:05,160 --> 00:31:06,120
Speaker 8: Well, that's the thing.

619
00:31:06,280 --> 00:31:08,000
Speaker 12: Nothing can replace concrete.

620
00:31:08,080 --> 00:31:08,280
Speaker 2: It is.

621
00:31:08,440 --> 00:31:11,800
Speaker 12: It is this miraculous artificial stone that has been a

622
00:31:12,040 --> 00:31:16,520
Speaker 12: absolute kind of foundational material since Roman times. What we

623
00:31:16,680 --> 00:31:18,840
Speaker 12: can do is we can we can devise ways of

624
00:31:19,040 --> 00:31:22,280
Speaker 12: making it a little less polluting and hopefully a lot

625
00:31:22,360 --> 00:31:25,520
Speaker 12: less polluting eventually. Uh So, there are there are techniques

626
00:31:25,680 --> 00:31:28,440
Speaker 12: to fire it at lower temperatures. You know that the

627
00:31:28,560 --> 00:31:33,240
Speaker 12: firing process of making cement is intensely kind of energy absorptive.

628
00:31:33,720 --> 00:31:33,840
Speaker 8: Uh.

629
00:31:34,040 --> 00:31:37,920
Speaker 12: There's chemical processes that can involve. There's uh adding more

630
00:31:38,000 --> 00:31:40,840
Speaker 12: recycled elements. Uh, and there's also sort of being a

631
00:31:40,880 --> 00:31:43,400
Speaker 12: little more flexible about how you use it and using

632
00:31:43,800 --> 00:31:47,240
Speaker 12: different kinds of concrete for different applications. The concrete that

633
00:31:47,320 --> 00:31:51,200
Speaker 12: that the Romans used, uh uh to millennia ago was

634
00:31:51,360 --> 00:31:54,840
Speaker 12: actually sort of kind of environmentally and much less destructive.

635
00:31:55,280 --> 00:31:57,960
Speaker 12: So this kind of kind of kind of nerding out

636
00:31:58,040 --> 00:32:00,240
Speaker 12: to the to the greedy.

637
00:32:00,480 --> 00:32:01,440
Speaker 2: Like concrete too.

638
00:32:02,040 --> 00:32:03,120
Speaker 3: Joel is that your dog.

639
00:32:06,000 --> 00:32:06,640
Speaker 10: Mute that one?

640
00:32:07,760 --> 00:32:10,240
Speaker 2: Go ahead, David, please find So.

641
00:32:10,800 --> 00:32:13,239
Speaker 12: So what we were sort of fascinated by was how

642
00:32:13,400 --> 00:32:16,120
Speaker 12: sort of the history of these materials to sort of

643
00:32:16,200 --> 00:32:20,440
Speaker 12: tracked human civilization and how we are kind of simultaneously

644
00:32:20,800 --> 00:32:24,040
Speaker 12: in desperate need of more of this and in desperate

645
00:32:24,120 --> 00:32:26,480
Speaker 12: need of finding a way to clean up these industries.

646
00:32:27,000 --> 00:32:29,920
Speaker 12: And each of these sort of industries faces their own

647
00:32:29,920 --> 00:32:33,000
Speaker 12: different challenges with sort of finding the raw materials and

648
00:32:33,080 --> 00:32:35,440
Speaker 12: finding ways to make it less destructive.

649
00:32:36,240 --> 00:32:40,000
Speaker 3: All right, So we talked about building materials. There's again

650
00:32:40,040 --> 00:32:42,400
Speaker 3: it's the city's double issue. So everything in it is

651
00:32:42,400 --> 00:32:47,080
Speaker 3: about cities. It's a collaboration with Bloomberg City Lab Joel Weber.

652
00:32:47,800 --> 00:32:50,360
Speaker 3: There's a story a column in here by Joshua Green.

653
00:32:50,720 --> 00:32:54,240
Speaker 3: It's about how GOP legislators are increasingly imposing their economic

654
00:32:54,320 --> 00:32:58,120
Speaker 3: and cultural priorities on left leaning municipalities, places where perhaps

655
00:32:58,120 --> 00:33:03,640
Speaker 3: a lot of New Yorkersfornians have moved during the pandemic Nashville, Tennessee.

656
00:33:04,440 --> 00:33:06,280
Speaker 3: What's the latest dispatch from Josh.

657
00:33:07,040 --> 00:33:07,720
Speaker 8: So what's really.

658
00:33:07,600 --> 00:33:10,160
Speaker 10: Interesting about this one was this, And this was a

659
00:33:10,200 --> 00:33:14,120
Speaker 10: story that major props to Josh Bruce Deean for collaborating

660
00:33:14,680 --> 00:33:16,960
Speaker 10: initially on Josh Green on this one with Josh Green

661
00:33:17,000 --> 00:33:20,400
Speaker 10: on this one, but this tension between blue cities and

662
00:33:20,560 --> 00:33:23,240
Speaker 10: red states, it really came to a head earlier this year,

663
00:33:23,600 --> 00:33:27,720
Speaker 10: and we asked Josh to go to Nashville, where so

664
00:33:27,920 --> 00:33:31,120
Speaker 10: much of this has really been culminating, and give us

665
00:33:31,160 --> 00:33:33,680
Speaker 10: sort of a dispatch, because one interesting thing about this

666
00:33:33,840 --> 00:33:37,720
Speaker 10: is that blue city red state relationship has been actually

667
00:33:37,840 --> 00:33:41,920
Speaker 10: like an incredible economic arrangement that everybody's benefited from. But

668
00:33:42,040 --> 00:33:44,600
Speaker 10: what we're beginning to see is that Red states are

669
00:33:44,680 --> 00:33:48,640
Speaker 10: kind of cracking down and a certainly an authority on

670
00:33:50,120 --> 00:33:55,400
Speaker 10: what heretofore been Democratic strongholds, and that alliances sort of

671
00:33:55,880 --> 00:33:58,320
Speaker 10: or a relationship is sort of now in flux in

672
00:33:58,360 --> 00:34:00,520
Speaker 10: a way that we're going to really have to be

673
00:34:00,640 --> 00:34:04,280
Speaker 10: watching how this plays out, because GOP is looking for

674
00:34:04,480 --> 00:34:09,080
Speaker 10: more and more ways to pick up not only like

675
00:34:09,239 --> 00:34:12,200
Speaker 10: talking points that they can launch onto, but also ways

676
00:34:12,239 --> 00:34:15,200
Speaker 10: that they can affect change, and targeting Blue city seems

677
00:34:15,280 --> 00:34:17,560
Speaker 10: to be one of the ways that they can see

678
00:34:17,600 --> 00:34:22,200
Speaker 10: immediate reactions, with which totally happened in Nashville. Even though

679
00:34:22,680 --> 00:34:25,280
Speaker 10: a lot of this has been pushed back on since

680
00:34:26,040 --> 00:34:27,840
Speaker 10: mister brucetein What did I miss in that description?

681
00:34:28,600 --> 00:34:30,759
Speaker 11: That's a pretty good description. I think the thing that's

682
00:34:31,040 --> 00:34:34,759
Speaker 11: interesting here is that, as Josh immediately found once he

683
00:34:34,840 --> 00:34:37,680
Speaker 11: started calling around, was that this is actually an area

684
00:34:37,760 --> 00:34:42,200
Speaker 11: where you've really seen the transformation of the two political

685
00:34:42,280 --> 00:34:45,839
Speaker 11: parties play out. You know, in Washington, Congress isn't passing much,

686
00:34:46,760 --> 00:34:49,239
Speaker 11: but one thing we've seen in recent years is that

687
00:34:49,480 --> 00:34:52,280
Speaker 11: a lot of red state legislators have gotten a lot redder,

688
00:34:52,719 --> 00:34:56,800
Speaker 11: and the makeup of the legislators in that Republican majority

689
00:34:56,880 --> 00:35:01,040
Speaker 11: has gotten much different, more populist, more aggressive, especially cultural issues.

690
00:35:01,480 --> 00:35:04,960
Speaker 11: At the same time that city level legislation is tackling

691
00:35:05,120 --> 00:35:08,360
Speaker 11: really hot button issues. Criminal justice has become, you know,

692
00:35:08,800 --> 00:35:11,359
Speaker 11: even more of a forefront over the last couple of years,

693
00:35:11,840 --> 00:35:15,160
Speaker 11: issues around transgender rights. A lot of times, cities are passing,

694
00:35:16,440 --> 00:35:19,040
Speaker 11: you know, things to expand those rights, and states are

695
00:35:19,080 --> 00:35:21,040
Speaker 11: looking to crack back on that and so they have

696
00:35:21,160 --> 00:35:24,080
Speaker 11: the power to do so. And it's playing out not

697
00:35:24,280 --> 00:35:26,720
Speaker 11: only in Nashville, but in a lot of other places

698
00:35:26,719 --> 00:35:27,520
Speaker 11: as well well.

699
00:35:27,560 --> 00:35:30,280
Speaker 2: And you know, I want to bring you back in, David,

700
00:35:30,320 --> 00:35:33,160
Speaker 2: because I do wonder you guys at City lab. You

701
00:35:33,239 --> 00:35:35,719
Speaker 2: know what goes on in cities increasingly, I feel like

702
00:35:35,760 --> 00:35:41,120
Speaker 2: coming out of the pandemic, you know, recent political cycles.

703
00:35:42,680 --> 00:35:46,960
Speaker 2: George Floyd like the fabric of cities. Yes, it's the buildings,

704
00:35:47,040 --> 00:35:51,600
Speaker 2: it's the structures, but politics is so much impacting the

705
00:35:51,760 --> 00:35:53,880
Speaker 2: landscape of our nation cities.

706
00:35:54,719 --> 00:35:57,960
Speaker 12: Well, absolutely, I mean, as Jah says, the dynamic that

707
00:35:58,040 --> 00:36:01,040
Speaker 12: you see in Nashville is repeated a lot of different states.

708
00:36:01,560 --> 00:36:05,200
Speaker 12: You know, Texas, West Coast cities, cities and sort of

709
00:36:05,320 --> 00:36:09,200
Speaker 12: more conservative state lawmakers are tangling in Oregon, and uh,

710
00:36:09,719 --> 00:36:13,080
Speaker 12: you know, it's it's a it's a phenomenon that predates

711
00:36:13,160 --> 00:36:16,680
Speaker 12: our current political era. It's not new in that sense.

712
00:36:16,719 --> 00:36:19,520
Speaker 12: It's also not a phenomena that's unique to the United States.

713
00:36:19,600 --> 00:36:23,120
Speaker 12: You see variations on this in Europe, and you know,

714
00:36:23,520 --> 00:36:25,600
Speaker 12: it's a it's a it's a it's a tension that

715
00:36:25,920 --> 00:36:29,120
Speaker 12: has always sort of kind of been kind of woven

716
00:36:29,200 --> 00:36:33,200
Speaker 12: into the landscape. The the the nature of urban life

717
00:36:33,440 --> 00:36:38,800
Speaker 12: tends to require a certain set of policy solutions, and

718
00:36:39,600 --> 00:36:45,920
Speaker 12: there is often a real kind of pushback from community

719
00:36:46,000 --> 00:36:49,520
Speaker 12: members who don't see those policy solutions as reflecting their values.

720
00:36:50,040 --> 00:36:53,279
Speaker 12: And that has manifested its way in all sorts of

721
00:36:53,360 --> 00:36:57,319
Speaker 12: interesting and and troubling ways. It really kind of got

722
00:36:57,400 --> 00:37:01,200
Speaker 12: weaponized in a dramatic way, certainly in the Trump era,

723
00:37:01,880 --> 00:37:04,400
Speaker 12: but it's it's it's always been sort of kind of

724
00:37:04,760 --> 00:37:10,760
Speaker 12: humming beneath urban relationships for you know, Millennia probably.

725
00:37:12,640 --> 00:37:15,120
Speaker 10: Okay, I got one more thing I want to bring up,

726
00:37:15,200 --> 00:37:18,640
Speaker 10: which as much as I talked about concrete to Josh,

727
00:37:18,719 --> 00:37:21,160
Speaker 10: the other thing was, look like I want to I

728
00:37:21,280 --> 00:37:25,520
Speaker 10: want to feel like cities are working, that they have answers,

729
00:37:25,640 --> 00:37:28,960
Speaker 10: that they're trying to improve people's lives, and that or

730
00:37:29,040 --> 00:37:31,120
Speaker 10: there are other people who have ideas to fix them.

731
00:37:31,320 --> 00:37:34,480
Speaker 10: And you know, we started with this idea of real

732
00:37:34,560 --> 00:37:39,160
Speaker 10: estate a little bit and Pat Clark did this element

733
00:37:39,320 --> 00:37:41,560
Speaker 10: that we kind of turned into the first thing we

734
00:37:41,640 --> 00:37:45,120
Speaker 10: had in ways to fix cities. And obviously we've spent

735
00:37:45,160 --> 00:37:48,080
Speaker 10: a lot of time talking about the problems with commercial

736
00:37:48,120 --> 00:37:51,200
Speaker 10: real estate and empty office space. And Pat came up

737
00:37:51,440 --> 00:37:55,120
Speaker 10: Josh with such a novel idea rooted in a real

738
00:37:55,200 --> 00:37:58,320
Speaker 10: estate listing that he saw what was the big takeaway

739
00:37:58,400 --> 00:37:59,920
Speaker 10: that we all need to get hip with.

740
00:38:00,600 --> 00:38:03,480
Speaker 11: Yeah, this was a really great insight from Pat. I

741
00:38:03,520 --> 00:38:07,000
Speaker 11: mean I started bugging Pat about doing something about converting

742
00:38:07,160 --> 00:38:10,359
Speaker 11: offices into apartments. Early on in this you know, it's

743
00:38:10,360 --> 00:38:11,960
Speaker 11: something that we've been talking about a lot. It's hard

744
00:38:12,000 --> 00:38:13,920
Speaker 11: to say something new about it because everyone said a

745
00:38:13,960 --> 00:38:16,120
Speaker 11: lot about it, and so I kept bugging him, and

746
00:38:16,280 --> 00:38:17,800
Speaker 11: eventually he said, well, I've talked to a couple of

747
00:38:17,800 --> 00:38:19,880
Speaker 11: people who came up with this idea, like, why are

748
00:38:19,920 --> 00:38:22,000
Speaker 11: we trying to make these things nice apartments? Why don't

749
00:38:22,040 --> 00:38:24,839
Speaker 11: we just make them really crappy apartments in the same

750
00:38:24,920 --> 00:38:27,560
Speaker 11: way that in the same way that in Soho in

751
00:38:27,719 --> 00:38:31,879
Speaker 11: the sixties, you know, those sweatshops that they turned into lofts.

752
00:38:31,880 --> 00:38:35,200
Speaker 11: Those weren't nice lofts, but people but tastemakers moved in

753
00:38:35,440 --> 00:38:37,800
Speaker 11: and they loved them. And so the idea is, like,

754
00:38:37,880 --> 00:38:40,000
Speaker 11: what if we can just make you know, the fluorescent

755
00:38:40,400 --> 00:38:43,240
Speaker 11: lighting and the gray carpeting be sort of the drafty

756
00:38:43,320 --> 00:38:46,360
Speaker 11: windows and the exposed brick of the you know, of

757
00:38:46,400 --> 00:38:47,200
Speaker 11: the Soho of today.

758
00:38:47,560 --> 00:38:49,560
Speaker 2: I love that because you're right, we spent so much

759
00:38:49,600 --> 00:38:51,680
Speaker 2: time talking about it, and I just thought that take

760
00:38:51,719 --> 00:38:55,960
Speaker 2: on it was incredible so much in this issue. Thank

761
00:38:56,040 --> 00:38:59,840
Speaker 2: you all. I really appreciate it, and just incredible incredible issue,

762
00:39:00,040 --> 00:39:03,239
Speaker 2: Credible cities issue. Joe Weber, editor of Bloomberg Business Week.

763
00:39:03,280 --> 00:39:06,759
Speaker 2: Josha Bustein, Technology Editor Bloomberg Business Week, who really put

764
00:39:06,800 --> 00:39:09,760
Speaker 2: this all together? Aloe with David Dudley, editor at Bloomberg

765
00:39:09,800 --> 00:39:12,480
Speaker 2: City Lab, joining us out there in DC. Guys, thank you.

766
00:39:15,680 --> 00:39:17,400
Speaker 8: Brother Marc.

767
00:39:19,080 --> 00:39:19,720
Speaker 9: A journal.

768
00:39:20,800 --> 00:39:21,719
Speaker 8: How about you let me drive?

769
00:39:22,040 --> 00:39:26,400
Speaker 1: Oh no, no, no, no, honey, please, I'll do the

770
00:39:26,560 --> 00:39:27,520
Speaker 1: riding gravels.

771
00:39:27,920 --> 00:39:28,640
Speaker 6: Let's mate, I.

772
00:39:28,719 --> 00:39:29,320
Speaker 2: Want to try it.

773
00:39:30,520 --> 00:39:33,680
Speaker 12: It's a good question that try.

774
00:39:36,239 --> 00:39:38,120
Speaker 1: This is the drive to the globe.

775
00:39:38,400 --> 00:39:39,160
Speaker 6: Don coms me.

776
00:39:39,239 --> 00:39:42,640
Speaker 1: I think we'll buy around it on Bloomberg Radio.

777
00:39:42,880 --> 00:39:45,280
Speaker 2: All right, everybody, just for eighteen minutes left in today's

778
00:39:45,400 --> 00:39:49,200
Speaker 2: a session and we're watching, you know, a market where

779
00:39:49,640 --> 00:39:51,800
Speaker 2: you know, you read through the economic news and maybe

780
00:39:52,239 --> 00:39:54,600
Speaker 2: investors once again thinking, okay, maybe the FED is getting

781
00:39:54,640 --> 00:39:56,759
Speaker 2: near the end, because we've got a little bit of

782
00:39:56,800 --> 00:39:58,680
Speaker 2: a rally. And what the S and P five hundred

783
00:39:58,880 --> 00:39:59,520
Speaker 2: is it for our fourth.

784
00:39:59,440 --> 00:40:01,680
Speaker 3: Data where we fourth n L forty five to fourteen?

785
00:40:01,920 --> 00:40:03,640
Speaker 2: Yeah, so we're a both that forty eight forty five

786
00:40:03,719 --> 00:40:04,200
Speaker 2: hundred mark.

787
00:40:04,320 --> 00:40:07,279
Speaker 3: Okay, so much for the August doldrums, Carol. Month to date,

788
00:40:07,320 --> 00:40:08,480
Speaker 3: the S and P's only down one point.

789
00:40:09,960 --> 00:40:10,480
Speaker 1: What do you call them?

790
00:40:10,520 --> 00:40:12,959
Speaker 2: Always fireworks in August at least the last I would

791
00:40:13,000 --> 00:40:14,920
Speaker 2: say last five years, six years. I don't know.

792
00:40:15,120 --> 00:40:17,759
Speaker 3: There's one more day of the month and we could

793
00:40:18,000 --> 00:40:20,560
Speaker 3: we could potentially be you know, for the month.

794
00:40:20,600 --> 00:40:23,160
Speaker 2: There's some drama. We did see yields back off a

795
00:40:23,200 --> 00:40:25,080
Speaker 2: little bit. You here Charlie talking the numbers. Let's see

796
00:40:25,080 --> 00:40:27,759
Speaker 2: what Hank Smith has to say about this environment. He's

797
00:40:27,800 --> 00:40:32,000
Speaker 2: CIO of the individual and institutional wealth management firm Haverver Trust.

798
00:40:32,040 --> 00:40:34,960
Speaker 2: He joins us on the phone from Bradner, Pennsylvania. Hank,

799
00:40:35,280 --> 00:40:37,880
Speaker 2: good to have you back with us. How are you

800
00:40:38,239 --> 00:40:42,080
Speaker 2: and how are you thinking about the market environment right now?

801
00:40:43,320 --> 00:40:46,080
Speaker 8: Well, it's great to be with you. Good afternoon, and

802
00:40:46,440 --> 00:40:51,640
Speaker 8: I am doing very well. Thank you. Look, this has

803
00:40:51,719 --> 00:40:55,080
Speaker 8: been one of the most interesting years in my uh

804
00:40:55,440 --> 00:40:59,160
Speaker 8: thirty eight years in this business. And you know there's

805
00:40:59,239 --> 00:41:02,840
Speaker 8: that Wall Street added bull markets climb walls of worry,

806
00:41:03,239 --> 00:41:05,960
Speaker 8: and that has never been more true than this year

807
00:41:06,040 --> 00:41:11,880
Speaker 8: when you consider everything the market has overcome in terms

808
00:41:11,920 --> 00:41:15,239
Speaker 8: of very elevated inflation at the beginning of the year,

809
00:41:16,480 --> 00:41:20,200
Speaker 8: you know, the most aggressive said right, height cycle that

810
00:41:20,360 --> 00:41:28,880
Speaker 8: we've experienced in thirty plus years. Also three bankruptcies and

811
00:41:29,040 --> 00:41:35,719
Speaker 8: the potential for another banking crisis, and concerns about commercial

812
00:41:37,040 --> 00:41:42,360
Speaker 8: loan repayments, concerns about student loan repayments, and the market

813
00:41:42,480 --> 00:41:48,480
Speaker 8: has just seen its way through through it all. And look,

814
00:41:49,320 --> 00:41:56,320
Speaker 8: we continue to remain pretty optimistic and but recognizing that

815
00:41:56,480 --> 00:42:00,719
Speaker 8: we could very well Carol have a relatively flat rest

816
00:42:00,800 --> 00:42:04,359
Speaker 8: of the year, but the broad market do pretty well.

817
00:42:04,440 --> 00:42:07,839
Speaker 8: So in other words, that is the so called Magnificent

818
00:42:08,000 --> 00:42:12,760
Speaker 8: seven stall out here, which they clearly need a breather.

819
00:42:14,440 --> 00:42:18,400
Speaker 8: You could also see plenty of laggards pick up the flat.

820
00:42:18,520 --> 00:42:21,120
Speaker 8: That's if the broad averages remain relatively flat.

821
00:42:21,239 --> 00:42:23,080
Speaker 2: Can I say there is a point like, if you're

822
00:42:23,120 --> 00:42:25,520
Speaker 2: an investor, at least on the equity I'm doing plain vanilla.

823
00:42:25,680 --> 00:42:28,480
Speaker 2: You're looking at a Nasdaq one hundred that's up forty

824
00:42:28,520 --> 00:42:31,279
Speaker 2: one percent so far this year, and you're looking at

825
00:42:31,320 --> 00:42:33,800
Speaker 2: an S and P five hundred that's up seventeen percent.

826
00:42:33,920 --> 00:42:36,440
Speaker 2: Mind you, I'm just doing the bigger, broader averages. You know,

827
00:42:37,320 --> 00:42:39,600
Speaker 2: to kind of put it in the bank, take a

828
00:42:39,680 --> 00:42:41,440
Speaker 2: money market or some kind of with you know, you

829
00:42:41,520 --> 00:42:44,080
Speaker 2: look at what treasuries are yielding and just say I'm

830
00:42:44,239 --> 00:42:46,560
Speaker 2: good in twenty twenty three, Like you can see why

831
00:42:46,640 --> 00:42:47,879
Speaker 2: people might just take a breather.

832
00:42:50,400 --> 00:42:56,520
Speaker 8: Absolutely, but look, small stocks offer tremendous opportunities. The equal

833
00:42:56,600 --> 00:42:59,520
Speaker 8: weight that s and P five hundred is half of

834
00:42:59,640 --> 00:43:03,360
Speaker 8: what the market calculated sm P five hundred, So there

835
00:43:03,400 --> 00:43:07,279
Speaker 8: are plenty of opportunities. And and even in terms of valuation,

836
00:43:08,400 --> 00:43:11,719
Speaker 8: the valuation of the market weighted cap s m P

837
00:43:11,920 --> 00:43:17,200
Speaker 8: five hundred is skewed by those handful of tech stocks

838
00:43:17,680 --> 00:43:21,600
Speaker 8: that uh, that are that are driving the valuation higher.

839
00:43:21,640 --> 00:43:23,040
Speaker 8: But if you look at the equal way of sm

840
00:43:23,120 --> 00:43:26,640
Speaker 8: P uh valuation, uh, it's much more reasonable.

841
00:43:27,000 --> 00:43:29,600
Speaker 3: So where are the opportunities for the stocks that haven't

842
00:43:29,680 --> 00:43:31,399
Speaker 3: yet had the room to run or haven't run yet

843
00:43:31,440 --> 00:43:31,759
Speaker 3: this year?

844
00:43:34,000 --> 00:43:36,320
Speaker 8: Well, I think, look, it'd be it'd be very healthy

845
00:43:36,920 --> 00:43:40,080
Speaker 8: to see a broadening out of the market. And we

846
00:43:40,239 --> 00:43:43,440
Speaker 8: saw a little bit of that in June, uh and

847
00:43:43,600 --> 00:43:47,520
Speaker 8: then uh it was back to the magnificent seven driving

848
00:43:47,640 --> 00:43:52,040
Speaker 8: the market. Uh, you know after after June. Uh. So

849
00:43:53,239 --> 00:43:58,840
Speaker 8: I think there is opportunities both in uh, in healthcare,

850
00:43:58,920 --> 00:44:02,160
Speaker 8: which has been a lagger, UH, in consumer staples which

851
00:44:02,200 --> 00:44:06,880
Speaker 8: have been a lagger, and and and we have uh,

852
00:44:07,040 --> 00:44:10,240
Speaker 8: we have pretty decent waitings in those two sectors where.

853
00:44:10,160 --> 00:44:12,120
Speaker 2: Don't you want to be. Is it just those names

854
00:44:12,160 --> 00:44:15,200
Speaker 2: that have really led the big outperformers. And I hesitate too,

855
00:44:15,760 --> 00:44:17,200
Speaker 2: if I can just do a kind of a second

856
00:44:17,280 --> 00:44:20,320
Speaker 2: question that every time everybody's like, stay away from the

857
00:44:20,360 --> 00:44:23,640
Speaker 2: big tech that have led, and then they have another

858
00:44:24,160 --> 00:44:26,720
Speaker 2: drive up that's significant.

859
00:44:28,239 --> 00:44:30,359
Speaker 8: Right, and and and and so this year has been

860
00:44:30,400 --> 00:44:34,800
Speaker 8: a mirror opposite of last year. And who would have

861
00:44:34,960 --> 00:44:41,160
Speaker 8: predicted that after sustaining those very significant corrections, those the

862
00:44:41,280 --> 00:44:45,320
Speaker 8: tech stocks would come roaring back. But it's hard to

863
00:44:45,360 --> 00:44:48,600
Speaker 8: get excited about buying those stocks after the kinds of

864
00:44:48,760 --> 00:44:54,280
Speaker 8: moves uh they've had, So we would we would caution

865
00:44:57,320 --> 00:45:01,040
Speaker 8: investing in that area. Uh. And Plus it's it's hard,

866
00:45:02,040 --> 00:45:04,160
Speaker 8: you know, if you're if you are trying to beat

867
00:45:04,239 --> 00:45:09,240
Speaker 8: the index, you need to own more than seven percent

868
00:45:09,480 --> 00:45:13,879
Speaker 8: in Apple and Microsoft. And if you're a fiduciary, that's

869
00:45:14,040 --> 00:45:16,440
Speaker 8: very difficult. You don't you just don't buy that much

870
00:45:16,520 --> 00:45:19,000
Speaker 8: in uh in two stocks.

871
00:45:19,160 --> 00:45:20,319
Speaker 3: That's a really interesting point.

872
00:45:20,880 --> 00:45:21,000
Speaker 12: Uh.

873
00:45:21,200 --> 00:45:25,959
Speaker 3: Okay, So I guess my question is about those sort

874
00:45:26,000 --> 00:45:30,840
Speaker 3: of unknown unknowns. What's out there that concerns you?

875
00:45:33,640 --> 00:45:40,440
Speaker 8: Well, look, whenever you're growing a below trend line, as

876
00:45:40,680 --> 00:45:45,480
Speaker 8: as this economy is right now, despite what the Atlanta

877
00:45:45,560 --> 00:45:51,560
Speaker 8: Fed tracker is forecasting for the third quarter. You're you

878
00:45:52,000 --> 00:45:57,080
Speaker 8: are susceptible to external shocks. The problem is you can

879
00:45:57,160 --> 00:46:02,160
Speaker 8: never identify those external shocks. And certainly back in March

880
00:46:03,680 --> 00:46:10,000
Speaker 8: with that mini crisis banking crisis, one would have thought

881
00:46:10,040 --> 00:46:14,000
Speaker 8: at that time, oh, this is an external shock. And

882
00:46:14,160 --> 00:46:18,520
Speaker 8: yet the market low or nearly the market low for

883
00:46:18,719 --> 00:46:22,360
Speaker 8: this year was the day Silicon Valley Bank went bankrupt.

884
00:46:22,840 --> 00:46:27,680
Speaker 8: And you could never have then said, let's buy stock.

885
00:46:28,560 --> 00:46:31,759
Speaker 8: We're going to be up fifteen percent from here over

886
00:46:31,800 --> 00:46:36,680
Speaker 8: the next handful of months. Yet that's exactly exactly what happened.

887
00:46:36,920 --> 00:46:40,239
Speaker 8: So I think the concerns about the beginning of the

888
00:46:40,360 --> 00:46:47,279
Speaker 8: repayment of student debt, it's a concern, but I don't

889
00:46:47,320 --> 00:46:50,040
Speaker 8: think that's going to be a big factor that is

890
00:46:50,120 --> 00:46:52,480
Speaker 8: going to affect the economy one way or the other.

891
00:46:53,160 --> 00:46:56,319
Speaker 8: And people have been talking about it for months now,

892
00:46:56,640 --> 00:46:58,400
Speaker 8: so that's not a big issue.

893
00:46:58,520 --> 00:47:01,440
Speaker 2: Ten seconds, Hank new mind, put it in the equity market,

894
00:47:01,520 --> 00:47:03,880
Speaker 2: put it in cash, put it in treasuries. If you

895
00:47:03,920 --> 00:47:06,000
Speaker 2: had to pick the two those three, where do you

896
00:47:06,080 --> 00:47:06,239
Speaker 2: do it?

897
00:47:07,040 --> 00:47:09,319
Speaker 8: Well, it is as long as you're as long as

898
00:47:09,320 --> 00:47:12,320
Speaker 8: your time frames three to five years put it in equity.

899
00:47:13,160 --> 00:47:15,400
Speaker 2: Interesting, Okay, are you holding cash though a lot for

900
00:47:15,480 --> 00:47:17,240
Speaker 2: your clients right now? Really quickly?

901
00:47:18,239 --> 00:47:18,359
Speaker 7: Uh?

902
00:47:18,920 --> 00:47:22,440
Speaker 8: Nook very little cash. But I can tell you the

903
00:47:22,520 --> 00:47:26,280
Speaker 8: clients where we have a balance between dot com bongs

904
00:47:27,280 --> 00:47:29,560
Speaker 8: have been very very happy with the driving.

905
00:47:31,200 --> 00:47:33,440
Speaker 2: All right, good stuck, Pig Smith. Thank you as much

906
00:47:33,520 --> 00:47:36,440
Speaker 2: as always, Cio of ha Her for trust. On the

907
00:47:36,480 --> 00:47:38,000
Speaker 2: phone from Radnor, Pennsylvania.

908
00:47:38,920 --> 00:47:42,720
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909
00:47:42,960 --> 00:47:46,879
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910
00:47:47,000 --> 00:47:50,879
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911
00:47:51,080 --> 00:47:54,359
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912
00:47:54,480 --> 00:47:57,400
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913
00:47:57,640 --> 00:47:59,880
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