WEBVTT - Markets Tumble, How Insurers Manage Risk 0:00:02.520 --> 0:00:08.039 Bloomberg Audio Studios, Podcasts, radio news. 0:00:08.640 --> 0:00:12.680 This is Bloomberg Business Week Insight from the reporters and 0:00:12.800 --> 0:00:16.800 editors that bring you America's most trusted business magazine, plus 0:00:17.000 --> 0:00:20.799 global business, finance and tech news. The Bloomberg Business Week 0:00:20.840 --> 0:00:25.760 Podcast with Carol Masser and Tim Stenovek on Bloomberg Radio. 0:00:26.480 --> 0:00:30.319 Stocks are down, use treasure yields moving up yields we've 0:00:30.400 --> 0:00:34.440 seen moving up this after this morning's US economic data 0:00:34.479 --> 0:00:36.640 amped up bets at the Fed will not cut interest 0:00:36.720 --> 0:00:40.680 rates again before July amid offlationary pressures, and even Michael 0:00:40.720 --> 0:00:43.320 McKenzie saying it's like a point in a smidge is 0:00:43.360 --> 0:00:45.879 what the market is expecting in July ten. 0:00:46.200 --> 0:00:48.680 With more joining us as John Augustine Cio over at 0:00:48.760 --> 0:00:51.040 Huntington Private Bank. It's a division of the public held 0:00:51.120 --> 0:00:54.960 twenty four billion dollar Huntington Bank shares based in Ohio. 0:00:55.240 --> 0:00:58.360 John oversees about twenty seven billion dollars in assets under management. 0:00:58.400 --> 0:01:01.240 He's back here in the Bloomberg Business Week studio in 0:01:01.280 --> 0:01:02.960 New York. John, how are you great? 0:01:03.080 --> 0:01:03.880 Great to be here again. 0:01:04.160 --> 0:01:07.080 Wappy New Year. You walked into the studio and you 0:01:07.080 --> 0:01:10.320 said it's the trifecta and that is what's hitting stocks. 0:01:10.560 --> 0:01:11.560 What are you seeing out there? 0:01:11.920 --> 0:01:15.080 Interest rates up, dollar index up, and price of crude 0:01:15.120 --> 0:01:15.600 oil up? 0:01:15.680 --> 0:01:16.800 And when those three are up. 0:01:16.840 --> 0:01:19.119 Now, they've been controlling the stock market now for about 0:01:19.120 --> 0:01:22.480 a month, and the newest member of that is crude oil, 0:01:22.680 --> 0:01:25.560 and stocks have a tough time with that. Think of 0:01:25.600 --> 0:01:28.880 it this way, the automatic stabilizers. When things go bad, 0:01:28.920 --> 0:01:32.959 when the US economy slows, dollar comes down, yields come down. 0:01:33.360 --> 0:01:36.480 Now they're both going up. They're actually trying to slow 0:01:36.520 --> 0:01:37.080 things down. 0:01:37.680 --> 0:01:41.199 So what happens. What's like if this trend continues, because 0:01:41.319 --> 0:01:43.240 we are in a market environment where I feel like, 0:01:43.880 --> 0:01:45.480 you know, you get a dump of certain news on 0:01:45.520 --> 0:01:47.520 a day and you get a trade a certain way, 0:01:47.640 --> 0:01:49.480 and then you come in the next day or two 0:01:49.560 --> 0:01:51.840 days from now, and it's a completely different narrative, especially 0:01:51.840 --> 0:01:53.320 in the treasury trade. I feel like we've been all 0:01:53.360 --> 0:01:56.480 over the place. So tell me, does this continues and 0:01:56.520 --> 0:01:59.200 if so, what are the implications it continues? 0:01:59.320 --> 0:01:59.520 Likely? 0:01:59.560 --> 0:02:04.279 And to earn season fifteenth officially we started earning season used. 0:02:04.120 --> 0:02:06.000 To be ge Now it's jp market. 0:02:05.760 --> 0:02:08.720 And all the banks that roll out. But it's going 0:02:08.760 --> 0:02:09.320 to continue. 0:02:09.320 --> 0:02:12.760 We're going to get this uneven economic news, The jobs 0:02:12.760 --> 0:02:14.720 reports are going to be very big on Friday, right, 0:02:15.360 --> 0:02:18.600 But it's the economic news is going to see to 0:02:18.639 --> 0:02:23.000 the earnings news. The earnings news is probably eventually going 0:02:23.040 --> 0:02:25.800 to be the arbiter, because earnings have been very good 0:02:25.960 --> 0:02:27.160 for two years. 0:02:28.560 --> 0:02:31.079 The S and P five hundred in twenty twenty three 0:02:31.200 --> 0:02:33.720 up more than twenty four percent, in twenty twenty four, 0:02:33.800 --> 0:02:36.680 up more than twenty three percent. Are your clients just 0:02:36.680 --> 0:02:38.440 calling you, being like, throw it all in the S 0:02:38.440 --> 0:02:42.239 and P five hundred? Why wasn't everything in the enough yet? When? 0:02:42.320 --> 0:02:42.519 When? 0:02:42.600 --> 0:02:44.760 So? You're saying box for the only thing Americans do 0:02:44.840 --> 0:02:46.040 not like to buy on sale. 0:02:46.639 --> 0:02:49.400 I've heard that before. Funny, But are they saying, wait 0:02:49.440 --> 0:02:51.120 a second, why wasn't I just in the S and 0:02:51.120 --> 0:02:53.639 P five hundred? You have me in this diversified portfolio 0:02:54.360 --> 0:02:56.560 that doesn't return what the S and P five hundred 0:02:56.600 --> 0:02:58.560 index returns? What's going on here? 0:02:58.919 --> 0:02:59.840 We we know? 0:03:00.160 --> 0:03:04.880 What we know is Americans are overcashed still, bank deposits 0:03:04.960 --> 0:03:05.760 up still. 0:03:05.560 --> 0:03:06.720 Market assets up. Still. 0:03:08.120 --> 0:03:10.200 If you look at the national numbers, Americans are over 0:03:10.480 --> 0:03:12.280 We find in our own customers. 0:03:12.120 --> 0:03:13.200 The highering customers. 0:03:13.280 --> 0:03:16.720 Yes, we've been weighted towards equities. 0:03:16.280 --> 0:03:18.040 Hiring the income spectrum, high. 0:03:17.960 --> 0:03:21.919 Income spectrums, we've been weighted towards equities, not all the way. 0:03:22.320 --> 0:03:23.720 We want to see what yields are going to bond 0:03:23.760 --> 0:03:24.480 yield you're going to do. 0:03:25.400 --> 0:03:28.960 But nobody's coming at us yet and saying, even after 0:03:29.000 --> 0:03:30.720 two years, throw at all inequities. 0:03:31.680 --> 0:03:32.840 It's just not there. 0:03:33.160 --> 0:03:35.240 Anybody coming in and saying, you know what, I'm done 0:03:35.400 --> 0:03:37.320 two great years. In terms of the equity play, we're 0:03:37.320 --> 0:03:39.680 being so kind of plain vanilla because we know private 0:03:39.720 --> 0:03:41.720 markets and a lot of things are in play in 0:03:41.760 --> 0:03:45.080 a lot of people's portfolios, especially at the higher income strata. 0:03:45.120 --> 0:03:47.560 But is anybody saying, I'm out, I want to be 0:03:47.760 --> 0:03:49.840 in something safe. I look at the treasury trade. I 0:03:49.840 --> 0:03:52.520 can kind of get a decent return there. So, you know, 0:03:53.320 --> 0:03:55.280 get into the investor's psyche right now. 0:03:55.400 --> 0:03:59.760 They they like the four percent yields and treasuries, but 0:04:00.120 --> 0:04:03.440 wants six eight percent, six eight ten percent increases in 0:04:03.480 --> 0:04:06.560 that and that you got to go to the stock. 0:04:06.320 --> 0:04:09.440 Market in the US this year. Though. 0:04:09.520 --> 0:04:14.520 What you're right on, Carol, is this year income may 0:04:14.560 --> 0:04:17.839 be the best mitigator against volatility. 0:04:18.000 --> 0:04:20.760 Right, protecting yourself against downside right and giving yourself. 0:04:20.960 --> 0:04:21.960 You're always gonna have fuel. 0:04:22.440 --> 0:04:23.920 John, do you think that we're going to head into 0:04:24.080 --> 0:04:26.640 you know, you guys are as we mentioned publicly held 0:04:26.680 --> 0:04:32.000 division of Huntington Bank shares twenty four billion dollar institution, 0:04:32.240 --> 0:04:34.640 and I am curious. I know you are in the 0:04:34.640 --> 0:04:36.760 institutions a lot bigger than that, a lot bigger. I'm 0:04:36.800 --> 0:04:38.880 talking about the market cap, forget me, but in terms 0:04:38.960 --> 0:04:40.920 of like you're you're in, you know, the private bank. 0:04:40.960 --> 0:04:42.919 But I am curious. You know, if you talk with 0:04:42.960 --> 0:04:45.080 some of the other colleagues, what they are seeing in 0:04:45.160 --> 0:04:48.719 terms of lending in the environment and our people taking 0:04:48.720 --> 0:04:50.680 out loans or is the bank willing to loan? Like, 0:04:50.760 --> 0:04:54.320 give us an idea. Is anybody thinking slow down concerns 0:04:54.320 --> 0:04:55.520 about recession. 0:04:55.160 --> 0:05:00.480 Now, especially after the election, there's more optimism now, there's 0:05:00.600 --> 0:05:04.279 more loan demand now, business small business is ready to go, 0:05:04.320 --> 0:05:06.800 even though in the stock market nobody likes small and 0:05:06.880 --> 0:05:10.039 good caps, but businesses are getting ready to go. 0:05:10.240 --> 0:05:13.320 There's probably and the bank ready to the banks ready. 0:05:13.480 --> 0:05:15.760 Banks are ready to go. Banks are over. 0:05:15.640 --> 0:05:19.680 Capitalized arguably, and I'm not just talking about the one 0:05:19.920 --> 0:05:25.159 I'm with, but in general that the optimism has come 0:05:25.200 --> 0:05:28.239 into the business community right or wrong, right or wrong. 0:05:29.200 --> 0:05:32.320 And we have a FED now that's not a headwind. 0:05:33.240 --> 0:05:35.839 We have a new administration that wants to speed things up. 0:05:35.960 --> 0:05:39.520 So the FED and the fiscal policymakers are in unison 0:05:39.640 --> 0:05:43.080 now to move forward on the economy. That's the playbook. 0:05:43.160 --> 0:05:46.480 And and then how much how much inflation will that generate? 0:05:46.560 --> 0:05:48.920 That generate out of that and nobody knows that yet. 0:05:50.000 --> 0:05:53.400 That's the concern though, right, yeah, talk a little bit 0:05:53.440 --> 0:05:59.560 about protecting clients against consecutive quarters of inflation moving higher 0:05:59.600 --> 0:06:01.960 if we get another jobs report. We got the Jolts 0:06:01.960 --> 0:06:04.000 report today that came in hotter than expected. 0:06:03.640 --> 0:06:05.159 And sent services, etc. 0:06:05.560 --> 0:06:11.839 So now last year, importantly, let's be back up. You'll 0:06:11.880 --> 0:06:15.800 curve now is normalized tenure yield as well over the 0:06:15.800 --> 0:06:20.479 inflation rate, official inflation rate, the headline CPI that most 0:06:20.480 --> 0:06:21.159 people follow. 0:06:21.839 --> 0:06:22.920 Now there's some cushion. 0:06:24.360 --> 0:06:28.120 So now there's some income cushion, real income now that 0:06:28.200 --> 0:06:31.320 we haven't had for ten years or so. So people 0:06:31.520 --> 0:06:33.800 like that, but they still want that six eight, ten 0:06:33.839 --> 0:06:38.039 percent as mentioned earlier, Now there are sixty two some 0:06:38.240 --> 0:06:40.160 stocks in the S and P five hundred that yield 0:06:40.240 --> 0:06:46.240 over four percent. So income from all three groups. Cash 0:06:46.440 --> 0:06:50.000 bond stocks you can almost get four percent or over. 0:06:50.040 --> 0:06:55.720 Now that's a useful tool it but clients mostly still 0:06:56.240 --> 0:06:57.440 want six eight ten. 0:06:57.640 --> 0:06:58.320 They're spoiled. 0:06:58.400 --> 0:06:59.040 They're spoiled. 0:06:59.160 --> 0:07:01.520 I mean historic you know what we got the last 0:07:01.560 --> 0:07:03.240 two years, certainly on the equity trade. 0:07:03.080 --> 0:07:04.880 Is not six eight ten. 0:07:05.760 --> 0:07:09.240 Historically that stocks start to run, they generally keep running. 0:07:09.960 --> 0:07:12.080 We might have two more years of this if earnings 0:07:12.160 --> 0:07:14.920 estimates are right. Think of the earningssts, thick of the 0:07:14.920 --> 0:07:18.800 Bloomberg earnings estimates thirteen this year, fifteen next year. 0:07:19.000 --> 0:07:20.800 Yeah, although Gina Martin Adams has been a little bit 0:07:20.800 --> 0:07:23.040 more sanguine feeling or a little bit more excuse me, 0:07:23.120 --> 0:07:27.280 pulling in in terms of expectations, the comparisons become really difficult. 0:07:27.520 --> 0:07:29.520 And now that things aren't going to grow, it's just 0:07:29.600 --> 0:07:30.600 not at the dynamic rates. 0:07:30.600 --> 0:07:33.520 No, and that's where productivity comes in, that's where AI 0:07:33.640 --> 0:07:38.000 comes in, et cetera. But our our equity team, Randy Herren, 0:07:38.040 --> 0:07:42.680 our equity team, Yeah, we're not seeing any slow down in. 0:07:42.640 --> 0:07:44.920 The overall beat level. It's still four or five hundred 0:07:44.960 --> 0:07:45.880 basis points. 0:07:46.280 --> 0:07:50.240 What about the US housing market, that's in the mortgage 0:07:50.280 --> 0:07:55.040 rates staying higher, Like, could that be something that causes 0:07:55.080 --> 0:07:58.560 some problems wider problems in the US economy. 0:07:58.600 --> 0:08:01.120 I mean, arguably the USA com to be growing above 0:08:01.160 --> 0:08:04.320 three percent, but housing starts are down year every year. 0:08:05.800 --> 0:08:08.600 Everything's wrong in how the inventories are wrong, the pricing 0:08:08.640 --> 0:08:11.200 is wrong. There's a mismatch of what kind of houses 0:08:11.240 --> 0:08:13.440 are out there versus what millennials want who are now 0:08:13.480 --> 0:08:19.000 forming households. So yes, the housing market is a risk. 0:08:19.480 --> 0:08:24.480 But surprisingly, what we started to hear from National Association 0:08:24.640 --> 0:08:28.360 reeltors over the last couple months is Americans, and we're 0:08:28.400 --> 0:08:30.520 going to find this out in the spring, is that 0:08:30.560 --> 0:08:33.600 Americans might be getting used to these higher mortgage rates. 0:08:34.720 --> 0:08:36.040 Yeah, there's a point where you're going to. 0:08:36.040 --> 0:08:38.640 Say they said it, We didn't say it. It's coming 0:08:38.679 --> 0:08:39.080 from them. 0:08:39.280 --> 0:08:40.840 No, it's a good point. I do feel like that 0:08:40.840 --> 0:08:43.120 that is something we started to talk about. Happy New York. 0:08:43.160 --> 0:08:46.120 Great to have you back, John Augustine over at Huntington 0:08:46.200 --> 0:08:46.880 Private Brank. 0:08:47.520 --> 0:08:51.080 You're listening to the Bloomberg Business Week podcast. Catch us 0:08:51.160 --> 0:08:54.600 live weekday afternoons from two to five pm Eastern. Listen 0:08:54.640 --> 0:08:58.080 on Apple CarPlay and Android Auto with the Bloomberg Business app, 0:08:58.320 --> 0:08:59.960 or watch us live on YouTube. 0:09:01.800 --> 0:09:03.640 All Right, everybody, it's a most read story on the 0:09:03.640 --> 0:09:07.520 Bloomberg on this Tuesday. JP Morgan Chase just becoming the 0:09:07.600 --> 0:09:10.640 last of Wall Street's biggest banks to abandon the industry's 0:09:10.720 --> 0:09:14.920 largest climate finance alliance. That's going on. But really what's 0:09:14.960 --> 0:09:19.400 most read is that he's saying JP Morgan, Hey, everybody, No, 0:09:19.480 --> 0:09:21.360 mo're working from home. Come on back to the office 0:09:21.440 --> 0:09:23.280 five days a week. So we wanted to get into it. 0:09:23.320 --> 0:09:27.360 Bloomberg New senior finance reporter Shrinatta Rajan here in studio. 0:09:27.440 --> 0:09:30.000 All right, so, first of all, let's talk about this 0:09:30.160 --> 0:09:32.480 back to work. What took JP Morgan so long? 0:09:32.679 --> 0:09:35.800 Well, first of all, Jamie Diamond hasn't quite said it yet. 0:09:36.040 --> 0:09:39.679 Senior executives of JP Morgan are talking about this. Can 0:09:39.720 --> 0:09:44.040 we assume it's very fair to assume Jamie Diamond's on board? 0:09:44.160 --> 0:09:46.400 Does anyone on board is Jamie Diamond? Everyone else has 0:09:46.440 --> 0:09:48.360 to fall in line. But all the sense we're getting, 0:09:48.440 --> 0:09:51.160 unless plans fallow out last minute, is sometime in the 0:09:51.160 --> 0:09:53.280 next few weeks and then week or two, you could 0:09:53.400 --> 0:09:55.120 very well see JP Morgan come out and say they 0:09:55.120 --> 0:09:58.080 want everyone back in office five days a week. They 0:09:58.120 --> 0:10:00.000 already had all their mds and above in the offic 0:10:00.040 --> 0:10:02.120 as a lot of the that's what I was toating stuff. 0:10:02.160 --> 0:10:03.440 Well what's the status right now? 0:10:03.480 --> 0:10:06.079 Like what change? What changes if this becomes policy. 0:10:06.240 --> 0:10:09.120 Roughly sixty percent of their workforce is full time, okay, 0:10:09.360 --> 0:10:11.480 but going from sixty to I don't know, eighty five 0:10:11.600 --> 0:10:14.040 ninety ninety five percent is still a lot because JP 0:10:14.120 --> 0:10:17.080 Morgan employs three hundred thousand people globally, so there are 0:10:17.120 --> 0:10:19.400 still a lot more people who supposed to come back 0:10:19.440 --> 0:10:20.160 in full time. 0:10:20.360 --> 0:10:22.120 And you know, this is a portion pole you see, 0:10:22.760 --> 0:10:24.440 especially on the tech side. 0:10:24.679 --> 0:10:27.240 Uh, It's it's a dynamic people have seen within JP Morgan, 0:10:27.280 --> 0:10:30.920 but it's perhaps true across the board's that's one group 0:10:31.559 --> 0:10:36.000 inside many corporations where it's proven the hardest to convince 0:10:36.040 --> 0:10:38.440 them that five days in the office is the way 0:10:38.440 --> 0:10:38.800 to go. 0:10:38.760 --> 0:10:40.880 And they need those workers, like pick your firm, right, 0:10:40.920 --> 0:10:43.559 they're kind of at their core their tech firms right 0:10:43.559 --> 0:10:44.800 in terms of needing that staff. 0:10:44.920 --> 0:10:49.480 And it's a question of where does the leverage lie. 0:10:49.800 --> 0:10:52.440 And you can see that very easily in the tech sector. 0:10:52.640 --> 0:10:54.960 Those are the companies that have the most flexible rules. 0:10:55.080 --> 0:10:57.800 When companies like Amazon first said we want everyone back 0:10:57.800 --> 0:10:59.480 in the office five days a week. There was a 0:10:59.520 --> 0:11:02.280 lot of pushback against it, and they're to delay those plans. 0:11:02.280 --> 0:11:04.440 And there are other tech films that will go out 0:11:04.480 --> 0:11:05.960 there and out their flexibility. 0:11:06.559 --> 0:11:08.079 Much less so in the banking sector. 0:11:08.080 --> 0:11:09.840 I'd probably say City Group is the only one out 0:11:09.840 --> 0:11:14.520 there who still speaks to its hybrid ethos. Everyone else 0:11:14.600 --> 0:11:16.160 is pretty much back in the office time. 0:11:16.240 --> 0:11:19.280 But do they have to City Do they have to 0:11:19.320 --> 0:11:21.240 in a sense to compete? 0:11:21.920 --> 0:11:24.720 Your point being that as one of the worst performing 0:11:24.760 --> 0:11:26.960 banks in the country, you you might as well show 0:11:27.000 --> 0:11:28.880 up your nice aside a different option. 0:11:30.200 --> 0:11:32.360 I'm curious. It's a fair point if you if your 0:11:32.400 --> 0:11:37.199 compensation has been based on company stock price and it's struggled, 0:11:37.679 --> 0:11:39.480 is it a retention issue and you have to come 0:11:39.559 --> 0:11:41.679 up with other ways to keep employees happy. 0:11:41.840 --> 0:11:42.839 I think it's a fair point. 0:11:42.880 --> 0:11:45.720 But in my mind it's more a leadership ethos more 0:11:45.760 --> 0:11:50.880 than stock market performance or your price to book ratio factor. Here, 0:11:50.920 --> 0:11:54.520 I think that is more Jane Frasier's leadership style coming through, 0:11:55.280 --> 0:11:57.880 and you can be fairly certain that she's not in 0:11:57.920 --> 0:12:01.880 the Jamie Diamond, David Solomon amp Off. An office only 0:12:01.880 --> 0:12:05.319 works when everyone's there five days a week. Could that change, Yes, 0:12:05.520 --> 0:12:09.520 But she's certainly been out there sort of showcasing that city. 0:12:09.679 --> 0:12:11.160 Is this nice, gentle place to work in. 0:12:11.320 --> 0:12:13.280 Listen. To be fair, I really think we all thought 0:12:13.559 --> 0:12:15.920 coming off the pandemic that oh my god, our working 0:12:16.000 --> 0:12:19.440 environment in every industry had changed. And what we've slowly seen, 0:12:19.480 --> 0:12:21.199 whether it's banking, whether it's you know, kind of pick 0:12:21.240 --> 0:12:24.640 your firm, everybody slowly coming back to their offices. I mean, 0:12:24.760 --> 0:12:26.800 let's not say, did you even ask about, oh, you 0:12:26.840 --> 0:12:30.600 did about the JP Morgan office building. It's an expensive building, right, 0:12:30.679 --> 0:12:31.080 You don't. 0:12:30.920 --> 0:12:32.520 Build a building like that and not have people come 0:12:32.559 --> 0:12:32.800 to work. 0:12:32.840 --> 0:12:33.839 It's down the street from us. 0:12:33.960 --> 0:12:36.920 It is one of the largest office buildings on the 0:12:36.960 --> 0:12:39.000 construction in the world, if not the largest. From what 0:12:39.040 --> 0:12:41.040 I understand, it's definitely safe to say one of the 0:12:41.120 --> 0:12:41.840 largest buildings. 0:12:41.720 --> 0:12:44.559 It's new, New Man, It's shining and new, and. 0:12:44.520 --> 0:12:47.280 It does look fabulous. So I'm sure Jamie Diamond would 0:12:47.320 --> 0:12:49.240 like to see it buzzing. But to me, it's also 0:12:49.240 --> 0:12:52.439 interesting that when we look across over the last few years, 0:12:52.480 --> 0:12:55.479 having covered the sector, having looked at the various announcements 0:12:55.480 --> 0:12:57.440 that have flowed through. Over the last few years, we've 0:12:57.480 --> 0:12:59.960 gone through fits and starts. First, it was the first 0:13:00.040 --> 0:13:02.040 few months after the pandemic when we're like, can you 0:13:02.080 --> 0:13:05.040 please start coming back into the office, not five days? One, two, 0:13:05.040 --> 0:13:08.240 three days, let's start there. Then maybe a year or two, Okay, 0:13:08.280 --> 0:13:11.080 not enough, let's go five days. Then it was pretty 0:13:11.080 --> 0:13:13.440 please can you do five days. Now we're again in 0:13:13.480 --> 0:13:16.600 this moment where with this new administration, and especially look 0:13:16.600 --> 0:13:19.880 at the Trump administration and its doge boys Elon Musk 0:13:19.880 --> 0:13:24.320 and vive Ramaswami training their guns at federal employees and 0:13:24.440 --> 0:13:28.120 office buildings being empty. They're all talking about that. Jamie 0:13:28.120 --> 0:13:30.280 Diamond himself has talked about how disappointing it is to 0:13:30.320 --> 0:13:33.120 see some of these federal offices being empty. So I 0:13:33.160 --> 0:13:35.480 think you will see the drumbeat of RT or at 0:13:35.559 --> 0:13:37.840 least that cycle go on for a little while longer, 0:13:37.840 --> 0:13:39.000 at least over the next few months. 0:13:39.080 --> 0:13:40.800 No, that's a good point, and from now we're always 0:13:40.800 --> 0:13:42.520 going to call on the doors boys. Thank you so much, 0:13:42.520 --> 0:13:44.360 stre for that. Hey, one other story you want to 0:13:44.360 --> 0:13:46.959 ask you, JP Morgan quitting the Climate Finance Group. They're 0:13:47.000 --> 0:13:50.320 following City, They're following Bava just you know, thirty forty 0:13:50.400 --> 0:13:53.120 seconds on this what's going on here? Does it mean 0:13:53.120 --> 0:13:55.000 that everybody's saying we don't care what happens to the 0:13:55.040 --> 0:13:57.280 climate the environment or is it something more nuanced. 0:13:58.520 --> 0:14:01.040 Easiest parallel I can make for you was look at 0:14:01.080 --> 0:14:04.400 Facebook or Meta adding Dana White to its board a 0:14:04.520 --> 0:14:09.280 Trump ally Trump buddy. If you're a large bank, how 0:14:09.360 --> 0:14:11.200 much do you want to be out there doubting the 0:14:11.240 --> 0:14:13.880 fact that you care for the environment and esg Yes, 0:14:13.920 --> 0:14:16.280 That's what all of them used to say. They just 0:14:16.360 --> 0:14:19.280 want to shout a little less louder. They don't want 0:14:19.320 --> 0:14:22.440 to be seen as in forefront of that revolution caring 0:14:22.440 --> 0:14:24.360 about the climate or climate change. 0:14:24.440 --> 0:14:25.760 With the Trump administry, do they. 0:14:25.720 --> 0:14:28.480 Still care about the climate and like, will investments reflect 0:14:28.520 --> 0:14:29.360 the or we don't know? 0:14:29.640 --> 0:14:31.200 Their also depends on who's in power. 0:14:34.200 --> 0:14:36.760 The doge boys never going to forget that making a 0:14:36.840 --> 0:14:38.840 pats and T shirts as we speak. Thank you so much. 0:14:38.920 --> 0:14:42.120 Rihna Raja and senior finance reporter here at Bloomberg News. 0:14:42.160 --> 0:14:45.480 Check them out on Twitter, on x on the Bloomberg 0:14:45.520 --> 0:14:48.560 and at Bloomberg dot com. 0:14:48.600 --> 0:14:52.240 This is the Bloomberg Business Week podcast. Listen live each 0:14:52.280 --> 0:14:55.640 weekday starting at two pm Eastern on Applecarplay and Android 0:14:55.680 --> 0:14:58.760 Auto with the Bloomberg Business app. You can also listen 0:14:58.840 --> 0:15:02.080 live on Amazon al from our flagship New York station, 0:15:02.640 --> 0:15:05.320 Just say Alexa play Bloomberg eleven thirty. 0:15:06.200 --> 0:15:09.160 Extreme weather throughout the US this week. Carol, Yes, she 0:15:09.240 --> 0:15:10.920 tweeted this photo this morning. I loved it. 0:15:10.920 --> 0:15:13.440 It was so I can't say freaking, but I'm gonna say. 0:15:13.520 --> 0:15:14.880 It was so cold. 0:15:15.000 --> 0:15:15.680 It was so cold. 0:15:15.720 --> 0:15:18.000 Oh my god, it was colder than Greenland. I put 0:15:18.040 --> 0:15:18.440 that out there. 0:15:18.640 --> 0:15:19.600 Yeah, that's what you tweeted. 0:15:20.080 --> 0:15:20.480 I did. 0:15:20.560 --> 0:15:21.120 Yeah, I love that. 0:15:21.360 --> 0:15:23.680 I was just layer upon layer and a big hat 0:15:23.840 --> 0:15:24.840 and you name it. 0:15:24.840 --> 0:15:26.320 It was just so Yeah, and days like this, I'm like, 0:15:26.320 --> 0:15:27.840 I hope my pipes don't freeze. That's what I think 0:15:27.880 --> 0:15:30.200 about it. Exact kind of scary stuff. Insurance companies don't 0:15:30.240 --> 0:15:33.240 like that either. Our BN team reporting exceptionally powerful dry 0:15:33.280 --> 0:15:36.720 winds expected across southern California this week that's set to 0:15:36.720 --> 0:15:39.720 set wildfire risks skyrocketing in a region that's endured more 0:15:39.720 --> 0:15:42.440 than eight months without significant rain. So you got fires, 0:15:42.440 --> 0:15:44.320 you got hurricanes, you got floods, ri ken havoc on 0:15:44.360 --> 0:15:47.280 traditional insurance, Yeah, I mean even if you don't live 0:15:47.280 --> 0:15:49.560 in an area that's at risk. Look no further than 0:15:49.600 --> 0:15:50.360 what's happened to your race. 0:15:50.440 --> 0:15:51.680 You and I talk about RATEL the time. 0:15:51.800 --> 0:15:54.880 Okay, So you add in risks from cyber attacks, pandemics, 0:15:55.000 --> 0:15:59.520 marine war, and more, and that's where specialty insures such 0:15:59.560 --> 0:16:02.960 as AXE come in. Vince Tizzio is president's CEO of Access. 0:16:02.960 --> 0:16:05.480 It's a seven point three billion dollar market cap company. 0:16:05.480 --> 0:16:08.000 It offers specialty insurance around the world. He joins us 0:16:08.320 --> 0:16:10.800 from New York. Vince, you play sort of in all 0:16:10.800 --> 0:16:14.080 these areas that I mentioned, but the specialty is really 0:16:14.160 --> 0:16:16.280 specialty insurance. Talk a little bit about what your bread 0:16:16.280 --> 0:16:16.880 and butter. 0:16:16.760 --> 0:16:20.000 Is, no doubt. Good afternoon, Good to be with you. 0:16:19.520 --> 0:16:23.480 You know, as a specialist insurer, we really fit the 0:16:23.520 --> 0:16:26.680 bill that comes to the consumer that isn't in the 0:16:26.720 --> 0:16:29.880 traditional landscape. Now you detailed in your outset com and 0:16:29.960 --> 0:16:33.320 some of the natural catastrophe and weather related risks. But 0:16:33.360 --> 0:16:36.160 as you mentioned as well, there's directors and officers and 0:16:36.200 --> 0:16:40.080 liability insurance, there's environmental There's a whole host of products 0:16:40.240 --> 0:16:44.160 that are not uniquely covered by traditional package policies sought 0:16:44.200 --> 0:16:46.200 by commercial entities across the globe. 0:16:47.160 --> 0:16:50.240 What would you say is the biggest segment for you 0:16:50.280 --> 0:16:52.720 when it comes to specialized insurance. Just to give our 0:16:52.800 --> 0:16:55.800 viewers and our listeners an understanding of the context here. 0:16:56.440 --> 0:17:00.480 Yeah, So I think, broadly speaking, think about industry first, 0:17:00.560 --> 0:17:04.040 the marine industry. Within the marine industry, it's not only 0:17:04.080 --> 0:17:07.000 about thinking about ships out in the water. It's also 0:17:07.040 --> 0:17:11.320 about how goods and services are transported on land one example. 0:17:11.680 --> 0:17:15.840 Second example energy, the energy sector, whether it be onshore 0:17:16.040 --> 0:17:19.879 or offshore. There's a variety of specialist insurance needs that 0:17:19.960 --> 0:17:24.000 are created and we deliver products and solutions. You mentioned cyber, 0:17:24.280 --> 0:17:27.960 and gosh, cyber has taken its own form in shape 0:17:27.960 --> 0:17:31.520 and is now a separate product that we, like other specialists, 0:17:31.640 --> 0:17:34.880 underwrite and bring to consumers around the world. And then finally, 0:17:35.080 --> 0:17:38.760 there's those professional liability products, whether they're E and O based, 0:17:39.000 --> 0:17:44.560 Arizona missions, malpractice insurance, directors and officers liability insurance. Those 0:17:44.560 --> 0:17:46.760 are some of the core capabilities that we bring to 0:17:46.840 --> 0:17:51.240 the insurance marketplace and are really considered specialist offerings. 0:17:51.920 --> 0:17:54.959 All right, So when you know, you really kind of 0:17:55.000 --> 0:17:58.320 cut across a bunch of different I feel like sector 0:17:58.480 --> 0:18:01.239 segments of the global economy. I was just looking at 0:18:01.280 --> 0:18:04.280 a story from Bloomberg that was back in about mid December, 0:18:04.320 --> 0:18:06.920 and it pointed out you guys, among a couple of 0:18:07.000 --> 0:18:11.240 other insurers that basically are providing credit risk insurance for 0:18:11.400 --> 0:18:13.359 the private arm of the World Bank as it looks 0:18:13.359 --> 0:18:17.520 to expand lending and emerging market economies. So help us 0:18:17.600 --> 0:18:19.840 understand from what you are seeing. First of all, is 0:18:19.840 --> 0:18:23.399 it getting more expensive to do that insurance? And I 0:18:23.480 --> 0:18:25.399 realize you play into a lot of different markets, but 0:18:25.520 --> 0:18:27.800 give us some color around that. And then what are 0:18:27.800 --> 0:18:29.520 you seeing in terms of what is going on in 0:18:29.520 --> 0:18:32.119 the global economy. Are there more risks out there? Is 0:18:32.119 --> 0:18:35.879 it getting more expensive for entities to ensure it? And 0:18:35.920 --> 0:18:38.760 that means just kind of higher costs on their organizations 0:18:38.840 --> 0:18:40.359 or companies for that matter. 0:18:41.200 --> 0:18:46.800 Yeah, Carol, credit insurance is a very niche specialist insurance 0:18:46.840 --> 0:18:50.160 offering we provided globally, and if you think about really 0:18:50.240 --> 0:18:53.400