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Speaker 1: on YouTube search Bloomberg Global News Present bundes in Poland,
Speaker 1: his second stop today, taking him to Warsaw. He has
Speaker 1: met with US troops, He's meeting Ukrainian refugees. He's expected
Speaker 1: to also make a major address tomorrow, and one of
Speaker 1: the most read stories on the Bloomberg is about how
Speaker 1: the buying administration officials are worried that Russian President Vladimir
Speaker 1: Putin may lash out dangerously as Russian troops find themselves
Speaker 1: bogged down in Ukraine and Western sanctions begin to bite. Tim.
Speaker 1: It's a lot to digest, it is. Unfortunately, we have
Speaker 1: Anne Marie Horder and Washington correspondent for Bloomberg TV with
Speaker 1: us now on the phone from warsaw Enemory. You've been
Speaker 1: in Europe before the president, since before the president even arrived. Um,
Speaker 1: how would you characterize what he's accomplished thus far on
Speaker 1: the trip versus what he set out to accomplish. Yeah,
Speaker 1: Luckily I actually used to live here, so I could
Speaker 1: say as well that there is a sense of there's
Speaker 1: a welcomeness in Europe right now, and you can see
Speaker 1: that in the Poles as well for this administration and
Speaker 1: actually of the unity they've brought and I was thinking Poland,
Speaker 1: there's definitely a sense that they want to welcome and
Speaker 1: have Ukrainian refugees. That the president did today called them
Speaker 1: their guests. You haven't only seen that in European countries,
Speaker 1: with refugees coming through other countries, notably a few years
Speaker 1: ago from Kyria. It's hard to characterize the success right
Speaker 1: because these trips are very much so also symbolic. But
Speaker 1: yesterday was a school of diploma scene. He had NATO
Speaker 1: had cours G seven Extraordinary meeting, and then he went
Speaker 1: and a dressed the European uh Commission and you did
Speaker 1: walk go away with a feeling that leaders are united
Speaker 1: in terms of wanting to make sure there is resolve
Speaker 1: and standing up to President Puchin. The big question is
Speaker 1: going forward, how far can this last? It will be
Speaker 1: pressured to increase sanctions, but also there's gonna be a
Speaker 1: lot of uh pushback and reverberations on all of these
Speaker 1: economies as well, especially in Europe, which are very reliant
Speaker 1: on Russia, including a number of businesses but most notably
Speaker 1: natural gas in oils. So, and I think we've talked
Speaker 1: with you about this before. So who is kind of
Speaker 1: the leader on all of this. I am curious if
Speaker 1: everybody is looking to President Biden or is it really
Speaker 1: you know, European leaders, because they are obviously geographically and
Speaker 1: you know, economically, going to feel and are in feeling
Speaker 1: the impacts of this, uh, you know, much more severely,
Speaker 1: much more closely than the US is well. Definitely the
Speaker 1: United States is taking a headlestand in all into but
Speaker 1: they have been in luck sets. If there's a lot
Speaker 1: of stuff with the European leaders that and they remind
Speaker 1: you of that that what they are doing, they are
Speaker 1: doing alongside their partners. When it comes to Europe's very
Speaker 1: difficult because this is a union of a number of
Speaker 1: nations that they're only as strong as their weakest link,
Speaker 1: in the sense that they can only go as tough
Speaker 1: as they're willing to as all the countries are willing
Speaker 1: to go. So I think the Latin in president yesterday,
Speaker 1: he says he's ready to cut off Russian oil and gas.
Speaker 1: He says, we shouldn't be paying for this, it's we're
Speaker 1: paying for Ukrainian blood, and he says there's a cost
Speaker 1: of freedom. But then you talked to Germans who very
Speaker 1: much so want to loosen their dependence on oil and gas,
Speaker 1: which we should note is a complete one. Eight when
Speaker 1: we saw into the Mercal chancellorship who really wanted to
Speaker 1: have this nord stream too, and SPD had a lot
Speaker 1: of not her exactly, but the stbc He party had
Speaker 1: a lot of connections with Russia. And now you see
Speaker 1: them even going to cut her. Looking to nine stats,
Speaker 1: they're building l ND terminals, so you see that there
Speaker 1: are cracked. But I would say that it would be
Speaker 1: Germany given how big that economy is and how reliant
Speaker 1: they are, specifically when it comes to natural gas. About
Speaker 1: fifty five coming from Russia. One thing we've been grappling with,
Speaker 1: as far as questions go and ray for the last
Speaker 1: month or so has been on the other side of
Speaker 1: this what things look like and when you know, without
Speaker 1: trying to, without asking you to prognosticate or even predict
Speaker 1: what happens. I'm wondering how the appetite for decreasing reliance
Speaker 1: on Russian energy, how to what extent that actually sticks
Speaker 1: across the continent. Yeah, you know, we just don't know yet.
Speaker 1: The way the infrastructure set up is that r Extream
Speaker 1: one a number of other pipelines about the third of
Speaker 1: natural gas goes through Ukraine. Actually they get billions of
Speaker 1: transit feeds like these, like an ev path almost are
Speaker 1: allowing that gas to go through. But you do see
Speaker 1: Europe looking for other alternatives. Now, Europe was already putting
Speaker 1: a lot of money in investment in renewable they wanted
Speaker 1: to elector by their continent. But now, I mean, it
Speaker 1: is pretty astonishing seeing the German economy minister who's the
Speaker 1: leader of the Green Party show up and cut her
Speaker 1: to try to ink ellen g deal. And he had
Speaker 1: said when he was in Doha, we may have to
Speaker 1: be rely on Russian guests for the next month, maybe
Speaker 1: in a year, but this might not always be the case,
Speaker 1: and he who has ears should listen. So really availed
Speaker 1: threat to President m Hey. One of the benefits of
Speaker 1: having you actually out there on the ground with the
Speaker 1: President as he makes his moves around Europe is what
Speaker 1: you are seeing directly, something that I can't Tim can
Speaker 1: in our studio and most of Americans can't do. What
Speaker 1: have you been seeing? And we've just got about a
Speaker 1: minute left. Well, I'll just say quickly at the moment
Speaker 1: I'm stuck on a street corner with the President, Motoricata,
Speaker 1: just come through to the security everywhere. But you cannot
Speaker 1: walk a block in Warsaw right now without seeing individuals.
Speaker 1: I'm looking at a woman right now wrapped in the
Speaker 1: Ukrainian flag. I'm seeing people sell Ukrainian flags and seeing
Speaker 1: Ukrainian flags and Rauciti everywhere. This is a city that
Speaker 1: is standing in solidarity with Kiev, and that is very
Speaker 1: apparent the moment you step off the plane. All right,
Speaker 1: we'll save travels, kiddo, and really appreciate it. We know
Speaker 1: you've been running around a lot, but really great to
Speaker 1: check in with you. Bloomberg TV Washington or Bloomberg I
Speaker 1: should say TV and Radio Washington correspondent and Marie Horden
Speaker 1: joining us. She's on the ground in Warsaw, Poland, and
Speaker 1: she's been there with the President as he moves around. Yeah,
Speaker 1: we're also expecting to hear from the President once again tomorrow,
Speaker 1: following up on yesterday's major addressed from what I understand right,
Speaker 1: so we'll see what he has to say. Um. But
Speaker 1: the energy, you know that Energy news and then working
Speaker 1: at a deal of the EU to get more US
Speaker 1: l n G. We've seen that impact some of the
Speaker 1: E n P players. I mean, energy has been to
Speaker 1: standout performer last year this year, but you definitely see
Speaker 1: different sectors move based on these different headlines. Questions, Carol,
Speaker 1: is it a permanent shift on the other side of this,
Speaker 1: it's a question we've been grappling with for weeks. You
Speaker 1: make deals, right, they stick around own. I guess something.
Speaker 1: All right, you're listening to Bloomberg Business Week. We're just
Speaker 1: getting started on this Friday. You're listening to Bloomberg Business
Speaker 1: Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic
Speaker 1: on Bloomberg Radio. As we've been talking about Germany's COVID situation.
Speaker 1: It is getting worse meantime. Just yesterday we talked with
Speaker 1: Bloomberg's Ian Marlowe about how Hong Kong went from zero
Speaker 1: to one of the worst areas of the world when
Speaker 1: it comes to COVID in the health pandemic. So what
Speaker 1: does that mean for the United States and the next
Speaker 1: few weeks here at the Round. Well, that's a question
Speaker 1: that we're gonna post to. Dr Ian LUs Bader, clinical
Speaker 1: professor of medicine at n y U Lang's Medical Center.
Speaker 1: He joins us on the phone from New York City,
Speaker 1: Dr Lusbader, how are you hey? Happy Friday, guys. So
Speaker 1: everyone is doing well? Yeah, we're good, Thank you. Um So,
Speaker 1: I was startled to see this UK COVID headline among
Speaker 1: the others that Carol read surging by one million in
Speaker 1: just a week. Oftentimes with over the last two years
Speaker 1: what's happened in the UK, we've seen happen here in
Speaker 1: the United States. Is this any exception, you know, like
Speaker 1: nineteen the Spanish flu. You don't want to always compare
Speaker 1: one pandemic to another, but so far I think that's
Speaker 1: provided a pretty good model. Um It took about three years,
Speaker 1: and I think we're still seeing a number of places
Speaker 1: around the world that are seeing a surge another wave
Speaker 1: of COVID, in this case primarily over crowned the B
Speaker 1: A two variant, which is much more transmissible, maybe fifty
Speaker 1: more transmissible, fortunately not more deadly. And we're really seeing
Speaker 1: this in different parts of the world. For example, in
Speaker 1: China and Hong Kong, they tried the lockdown approach. We've
Speaker 1: seen data that that does not work well. Their vaccination
Speaker 1: rates were not particularly high as a small island um.
Speaker 1: They also used the sign of fact vaccine, which we
Speaker 1: don't really know that much about where it is unclear
Speaker 1: how effective that is. And certainly for many of the
Speaker 1: people in uh China and Hong Kong, they've only had
Speaker 1: one or two vaccines, not the three or now that
Speaker 1: we're contemplating four here, not nearly as much as in
Speaker 1: the US. So I don't think we can really compare
Speaker 1: different parts of the world, but certainly the surge in
Speaker 1: the UK is concerning. I think we're in a better
Speaker 1: position in the US. I think our case numbers are dropping.
Speaker 1: Could we see another minor peak um with the B
Speaker 1: two variant. I think we might we're not seeing an
Speaker 1: increase in hospitalizations or deaths. And I think part of
Speaker 1: that is because we've been generally very good with vaccines
Speaker 1: and you know, MOUs and sort of simple procedures. But
Speaker 1: I think we have a lot of antibodies around, both
Speaker 1: from getting ill and uh and from vaccinations. Well, okay,
Speaker 1: because it's funny some of the conversations Ian. I mean,
Speaker 1: I've you know, things have happened in terms of contract
Speaker 1: contact tracing, even at our office, you know, been reached
Speaker 1: out where I kind of thought, wait, everything was getting coming.
Speaker 1: Let's say, if I just want to say, you're four
Speaker 1: feet away from me. So, so how do we because
Speaker 1: of those antibodies? Because I've had three shots, Um, it
Speaker 1: doesn't mean I won't have some symptoms, but or or
Speaker 1: I could possibly or anybody could or or nothing. Right,
Speaker 1: I mean that's kind of where we are because of
Speaker 1: because of mutation, people can have they kind of their
Speaker 1: three shots, can have had COVID or the alpha variant
Speaker 1: and are often still getting O macron. But what we're
Speaker 1: noticing is it's very mild. And in your case, you
Speaker 1: you had a positive swab, but really no symptoms. Wasn't
Speaker 1: a false positive maybe, but we're seeing very mild to
Speaker 1: to really no symptoms, some people a little bit more
Speaker 1: with cough and and laryngitis. So I think I had
Speaker 1: that variant, But I think the key metric is hospitalizations
Speaker 1: and fatal disease. And really what I would say is
Speaker 1: many people are concerned should I get a fourth vaccine
Speaker 1: right now? Cdc UH is limiting it. Really the only
Speaker 1: people who are im you know, compromised. My bet, like
Speaker 1: israel As, we will approve it for people sixty five
Speaker 1: and older or people with underlying disease, and I would say, yes,
Speaker 1: if you're in that high risk group, sure it's worth
Speaker 1: taking another vaccine. How effective that is not quite clear
Speaker 1: because remember we keep giving alpha boosters and the and
Speaker 1: the virus has mutated. You know, if we could develop
Speaker 1: an omicron vaccine, that would make a lot more sense
Speaker 1: in your view, Dr LUs Beder, Have we gone from
Speaker 1: pandemic to endemic yet? I think we're in that transition,
Speaker 1: and if we see covid in the full, which we might,
Speaker 1: my bet is it will be more of an endemic.
Speaker 1: We might get you know, flu shots combined with COVID shots.
Speaker 1: But in my mind, I think we need to. What
Speaker 1: this tells me is we need to work harder on
Speaker 1: an appropriate vaccine like omicron and a universal vaccine for
Speaker 1: coronaviruses which would protect against other common cold viruses. Yeah,
Speaker 1: and there's a story in the Bloomberg about that. Uh
Speaker 1: and also in our weekend show looking at booster development
Speaker 1: and ongoing. Hey, Ian, thank you so much, have a
Speaker 1: great weekend. Ian LUs Beda, Dr Ian las Beda over
Speaker 1: at n y u Lango Medical Center. This is Bloomberg
Speaker 1: Business Week with Carol Masser and Bloomberg Quick Takes. Tim
Speaker 1: Stenovic on Bloomberg Radio. A lot going on on the
Speaker 1: Russian Ukrainian front today, you know that, And that includes
Speaker 1: something that we heard thanks to our Bloomberg's Maria today
Speaker 1: or she caught up with Ukrainian President Zelinski's chief of
Speaker 1: staff igor Zakova, and he told her the Ukraine will
Speaker 1: never surrender. He don't want the peace agreement on the
Speaker 1: Russian terms. They wanted us to have a peace agreement
Speaker 1: on the Russian forms at the beginning. They wanted to
Speaker 1: all their provisions to be implemented, all their demands of dreadlines. No,
Speaker 1: but we don't have any agreement any any peaceful agreement
Speaker 1: or the peaceful women at any terms. We will want
Speaker 1: the peaceful women at Ukrainian terms because we're served in West.
Speaker 1: Survivan again that as Ukrainian President Zelanski's chief of staff Egorzakova. Um,
Speaker 1: we are so lucky to have access to this next guest,
Speaker 1: her expertise and Russian President Vladimir Putin has just been
Speaker 1: uh so important and valuable to us. Back with us
Speaker 1: as Angela Stent, Senior advisor to the Center for Eurasian,
Speaker 1: Russian and East European Studies, also served as a National
Speaker 1: Intelligence Officer for Russia and Eurasia at the National Intelligence
Speaker 1: Council and before that served at the U. S Department
Speaker 1: of State. Her latest book is on Vladimir Putin. It's
Speaker 1: entitled Putin's World, Russia against the West End with the
Speaker 1: rest once again on the phone from Washington, d C. Angela,
Speaker 1: thank you again for just checking in with us or
Speaker 1: giving us some time again. Um, where are we on this?
Speaker 1: What do you think might be next? In terms of
Speaker 1: Vladimir Putin's efforts and moves? So interestingly enough, the Russian
Speaker 1: military today held a press conference and said, well, actually
Speaker 1: we're just going to focus on securing the Donbass region,
Speaker 1: that's the region in southeastern Ukraine with the two separatist entities.
Speaker 1: So suddenly they're not talking anymore about the whole of Ukraine,
Speaker 1: about Kiev, and they're saying, well, we never meant to
Speaker 1: do anything else but that anyway, which of course is
Speaker 1: completely different from what they said a few weeks ago.
Speaker 1: If that's true, then that means that, you know, the
Speaker 1: Ukrainians have successfully been resisting them. They're not going to
Speaker 1: be able to take key of any time soon. So
Speaker 1: we'll have to see what this brings in the next
Speaker 1: few days. So what do you make of that specific move?
Speaker 1: I mean, is that a way for Putin in his
Speaker 1: military to to save face, to get out. It appears
Speaker 1: that it could be they could say we said all
Speaker 1: along we wanted to secure these republics. Uh, they will
Speaker 1: have them secured, and they can say now we know that,
Speaker 1: you know, the Ukrainian quote unquote fascists and Nazis won't
Speaker 1: get them, and we can go home. I mean, I
Speaker 1: wouldn't jump to conclusions that's that's going to happen immediately,
Speaker 1: but they are giving themselves now a way out. It
Speaker 1: is there there there a lot of questions about whether
Speaker 1: or not Zelinski and the Ukrainians would actually seed on
Speaker 1: the don Bus region right there. Certainly is and you
Speaker 1: know it would depend. Then you'd have to have negotiations
Speaker 1: and you'd have to see, you know, what the Russians
Speaker 1: are demanding and what the Ukrainians are willing to concede.
Speaker 1: And obviously there you know, if they've done well the
Speaker 1: Ukrainians as they have, they're going to be tougher in
Speaker 1: these negotiations. But is this just a case if indeed
Speaker 1: we see President Putin and Russia retreating on this, is
Speaker 1: this just a case of okay for now, but that
Speaker 1: his intentions haven't really changed about his uh feelings and
Speaker 1: plans for Ukraine. Yeah, I don't think we can say
Speaker 1: at this point that his intentions have changed. I think
Speaker 1: that he you know, his goal remains the subjugation of
Speaker 1: Ukraine and having a government in power and KEIV that's
Speaker 1: pro Russian and gives up on trying to join the West.
Speaker 1: Those were his goals you know, years ago, months ago,
Speaker 1: and they remained the same. But you know, you could
Speaker 1: at least have a lot, You could have a siege fire.
Speaker 1: You're gonna have a regrouping, and then let's see what
Speaker 1: happens going forward, and let's see if Russia changes some
Speaker 1: of its gold depending on how badly all of these
Speaker 1: sanctions hit. Going forward, if there is a regrouping, what
Speaker 1: happens to the rest of the world. Has have things
Speaker 1: changed indefinitely at this point, whether it comes to where
Speaker 1: Europe gets its energy, whether it comes to strengthening of NATO,
Speaker 1: has that changed at least for the mid term. I'm
Speaker 1: trying to think of duration, what's the right duration. Have
Speaker 1: these kind of changed They definitely, yeah, I think they
Speaker 1: definitely have, because you know, the Europeans, outside world has
Speaker 1: realized that Russia undertook this unprovoked invasion in the middle
Speaker 1: of Europe, causing this humanitarian catastrophe, refugee crisis, displaced persons.
Speaker 1: We've heard that Ukrainians have been abducted and taken to
Speaker 1: different locations in Russia. So nobody is you know, going
Speaker 1: to It's not going to go back to what it
Speaker 1: was before. The question is whether the conflict would in
Speaker 1: fact be over um at some time in the near future,
Speaker 1: and that meant might that make people rethink things? But
Speaker 1: I think for the medium term, nothing's going to change.
Speaker 1: People are going to realize that the system we had
Speaker 1: before Febry twenty four, before the invasion is broken, and
Speaker 1: you know, something needs to be done to fix it.
Speaker 1: Just real quickly. What's medium term that? Three five years? Yeah,
Speaker 1: I mean it's it's it's a few years. I would say, definitely, definitely, Angela.
Speaker 1: You wrote a book, as Carol mentioned, called Putin's World,
Speaker 1: Russia against the West and with the rest. What do
Speaker 1: you think is going on in Putin's head right now?
Speaker 1: How do you think he is feeling and how do
Speaker 1: you think he how do you It's hard to be
Speaker 1: It's impossible to predict what he's going to do. But
Speaker 1: given that he thought he was going to take Keep
Speaker 1: in a matter of hours or days, and here Russian
Speaker 1: troops are in a stalemate outside many of the major
Speaker 1: cities right now, well, I mean, he must be very
Speaker 1: angry at those advisors of his who reinforced what he
Speaker 1: wanted to believe, which was this was going to be
Speaker 1: a cakewalk and the Ukrainians were going to concede, you know,
Speaker 1: within seventy two hours. So he must be very angry
Speaker 1: at that. I think he's amazed, really by the fact
Speaker 1: that you've had allied unity on these very tough sanctions.
Speaker 1: I don't think he thought the sanctions like this would
Speaker 1: be imposed, and now Russian has to scrambled to see
Speaker 1: how it's gonna deal with you sanctions going forward. Uh,
Speaker 1: he's and I think he's seen, um, you know, very
Speaker 1: surprised by Ukrainian resistance. Hey, really quickly twenty seconds, because
Speaker 1: you understand this world. Do you think the oligarchs are
Speaker 1: calling him up and saying enough already, Vladimir, knock it
Speaker 1: off just quickly. Well, they may be, but they don't
Speaker 1: really have that kind of influence over him. The people
Speaker 1: who have influence overhead of the people from the security
Speaker 1: said this is not the oligarchs. You're a gem. Thank
Speaker 1: you so much. When we heard all the news and
Speaker 1: headlines again this morning, we're like, this is who we
Speaker 1: want to talk to. So Angela, thank you so much.
Speaker 1: Aways appreciated. Angelis Stent, advisor to the Center for Eurasian,
Speaker 1: Russian and East European Studies. Check out her book called
Speaker 1: Putin's World. You're listening to Bloomberg Business Week with Carol
Speaker 1: Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio
Speaker 1: flet of crypto headlines among them, and Caroline mentioned at
Speaker 1: Caroline Hyde earlier about eight Ether up for a second day,
Speaker 1: extending it's a performance compared with Bitcoin. There's a lot
Speaker 1: of excitement over an upcoming software upgrade, promises to reduce
Speaker 1: the blockchains carbon footprint, paved the way to improve the
Speaker 1: network scalability and efficiency. So that's given a little bit
Speaker 1: of a boost. Let's get into it with our next guests.
Speaker 1: We're really pleased to be joined by Bret Harrison, who's
Speaker 1: president of f t X US. Before f t x
Speaker 1: he was the head of semi systematic technology at Citadel Securities.
Speaker 1: Before that, he was at Jane Street, where you led
Speaker 1: the firm's algorithmic trading system development. Brett, good to talk
Speaker 1: to you again. How are you Yeah, great to talk
Speaker 1: to you too. How are you We're doing well? Thanks. Um.
Speaker 1: I want to start with just what you're seeing on
Speaker 1: the platform right now. We did talk just a few
Speaker 1: moments ago about the rise of is that we're seeing
Speaker 1: with Bitcoin is up for a second day in a row.
Speaker 1: It's getting another bid today, best levels in more than
Speaker 1: a month. What are you seeing on f t X
Speaker 1: USS platform. Yeah, we're definitely seeing increased volumes across the board. Um.
Speaker 1: The top asset on the platform right now is Ether,
Speaker 1: a lot of excitement around as you mentioned the upcoming
Speaker 1: upgrades on Ether promise about future scalability, lower transaction costs
Speaker 1: or emissions, and so Ether followed by Bitcoin, followed by
Speaker 1: Salona the top three assets on ft X. You asked today,
Speaker 1: so what would you say an increase in volume? Give us,
Speaker 1: give us some numbers, were Bloomberg. We're nerdy, we like
Speaker 1: to know numbers. So how much are you seeing an
Speaker 1: increase in volumes? And I'm curious about types of users
Speaker 1: new users? What kind of growth are you seeing there? Sure? Um,
Speaker 1: generally speaking, dish increase, uh, compared to let's say the
Speaker 1: last month or so. UM, we are are bought volumes
Speaker 1: tends to have and slow, not just with you know,
Speaker 1: increasing prices, but also with just general volatility and a
Speaker 1: lot of institutional market makers. On the last form UM
Speaker 1: users send a just subtly increase. Of course, it's not
Speaker 1: just the prices of assets, but also the budget that
Speaker 1: we've been putting into marketing and trying to acquire and
Speaker 1: used onto the platform as well. Hey, Brett. Um, I
Speaker 1: want to I want to talk a little bit about
Speaker 1: follow you on Twitter. A lot of people follow you
Speaker 1: on Twitter. I'm not the only one. UM. I want to,
Speaker 1: uh just get you to expand on something that you
Speaker 1: tweeted last week. It was all about marijuana related companies
Speaker 1: and digital assets, cannabis and digital assets, and you know,
Speaker 1: I think a lot of our listeners are familiar with
Speaker 1: the the challenges that these cannabis companies face because they
Speaker 1: are not able to use banks per se. They poured
Speaker 1: a lot of cash. You see security guards outside of
Speaker 1: cannabis shops right now as a result of that. Um,
Speaker 1: what did you mean when you said that that that
Speaker 1: cannabis that digital assets could really help when it comes
Speaker 1: to cannabis. So, something that we're looking at in general,
Speaker 1: and not just with cannabis companies, but underbanked and unbanked
Speaker 1: populations in general are ways in which people might not
Speaker 1: have access to traditional financial services and their disadvantage as
Speaker 1: a result. So, for example, UM, even in Chicago where
Speaker 1: we live, there are people who are underbanked or unbanked.
Speaker 1: They get paid as a paycheck, in as an actual
Speaker 1: physical check, and instead of being able to cash out
Speaker 1: of a bank, they have to go to a local
Speaker 1: currency exchange and give away thirty percent of their paycheck
Speaker 1: just to cash that check. And crypto exchanges having these
Speaker 1: modern banking services can provide some of these kinds of
Speaker 1: depository services that otherwise banks have provide, and to do
Speaker 1: so with better technology, with mobile applications. Also global remittances,
Speaker 1: being able to transmit payments, you know, across border for example. Uh,
Speaker 1: someone who is sending paysouse back to their family in
Speaker 1: Mexico from Chicago. Again, they're gonna get killed the currency exchange.
Speaker 1: So it's not just with with cannabis companies in general.
Speaker 1: We're looking at cases where crypto exchanges can help using uh,
Speaker 1: you know, borderless quick low fee transactions, using stable coins,
Speaker 1: other kinds of cryptos to be able to assist in
Speaker 1: places where financial services aren't really available. Gotta say, Rosscober
Speaker 1: certainly well known to our audience. We have them on.
Speaker 1: He's like, do it when it comes to I think
Speaker 1: somebody commenting on your Twitter feed, which we've been playing
Speaker 1: for our YouTube viewers, you know, rosscarversing, do it when
Speaker 1: it comes to a crypto option. If there is a
Speaker 1: crypto option for cannaby cannabis, um Brett. Do you think
Speaker 1: it will be its own or is it tapping into
Speaker 1: ethereum or is it tapping into bitcoin? What is it?
Speaker 1: I think there's probably none of the above. The first
Speaker 1: goal would be would be to be able to use
Speaker 1: just you know, for example, stable coins like USDC, some
Speaker 1: sort of digital form of us D where you're not
Speaker 1: exposed to the politi atility of crypto, but you are
Speaker 1: getting the benefit of digital currencies being easy to hold,
Speaker 1: easy to transfer, um able to to be to hold
Speaker 1: those in in a wilet where they might not be
Speaker 1: able to hold those in the bank account right now,
Speaker 1: Really interesting stuff again, tweeting and comes like a stay
Speaker 1: tuned speaking of well, speaking of staying tuned, I want
Speaker 1: to talk a little bit about f t X stocks,
Speaker 1: because we did that as we approached the launch date
Speaker 1: for f t X stocks. We look forward to sharing
Speaker 1: more on how we're thinking about the above questions, mainly
Speaker 1: payment for order flow, how you're going to offer the
Speaker 1: opportunity for people to trade stocks on the platform, uh,
Speaker 1: and quote the decisions that we've made. UM. Do you
Speaker 1: have a launch date for f t X stocks? When
Speaker 1: are you think abou launching not yet, but um let's
Speaker 1: say sometime in the next couple of months for sure,
Speaker 1: And how do you anticipate paying for it? Payment forward
Speaker 1: to flow is something that you talked about in the
Speaker 1: in the tweet thread, but you brought up some challenges
Speaker 1: when it comes to payment forwarder flow, So what does
Speaker 1: that look like? Yeah, again, we're gonna be happy to
Speaker 1: share those to get closer to launch date. In the meantime,
Speaker 1: we're exploring a couple of different options for possible or
Speaker 1: order outing and execution. You know, for us, our primary
Speaker 1: business is crypto and it is currently a pretty high
Speaker 1: margin business where there are still per trade fees as
Speaker 1: the norm on ft x U s are fees are
Speaker 1: something like se lower than many of our competitors in
Speaker 1: the space. Um, so we take that very seriously, but
Speaker 1: it's still a pur trade commission or fee. So the
Speaker 1: primary goal of having stock on the platform might not
Speaker 1: necessarily be to generate the maximum possible profit from the
Speaker 1: stock trading, to give people a holistic investing experience that
Speaker 1: captures those users onto a platform, putting your deposits at
Speaker 1: one place and engaging in both the crypto and the
Speaker 1: stock side from the same interface, Bret, so, is it
Speaker 1: a launch maybe in the first half or second half?
Speaker 1: Just quickly aiming for first half. All right, we're gonna
Speaker 1: leave it there. We really appreciate your time. Have a
Speaker 1: great week in Brett Harris and he's the president of
Speaker 1: f t x US joining us on the phone in Chicago.
Speaker 1: You're listening to Bloomberg Business Week, Carl Master, Tim Stanovic.
Speaker 1: This is Bloomberg Radio. I'm yeah, but you let me drive?
Speaker 1: Oh no, no, no no, no, honey, please, I'll do the riding.
Speaker 1: I want to drive. It's the question. This is the
Speaker 1: drive to the globe thing? Well, radios, it just about
Speaker 1: ten minutes left in today's treating session. Yeah, I know, right, Yeah,
Speaker 1: it's crazy. Uh yeah, it's been a busy another busy
Speaker 1: day here, um and we've been bounced around though. It's
Speaker 1: really it does feel like stocks just looking for direction here. Yeah,
Speaker 1: I mean, it's literally what I've been thinking about for
Speaker 1: the top of our what Tim said to me in
Speaker 1: the break. But it's true. It's it's gone between gains
Speaker 1: and loss today at least ten times. It's traded within
Speaker 1: a relatively narrow range about one percent today, so really
Speaker 1: struggling for direction. Let's get into it with Ryan Dietrich,
Speaker 1: chief market strategist at LPL Financial. He joins us on
Speaker 1: the phone from Charlotte, North Carolina. Ryan, how are you. Yeah,
Speaker 1: it's good to have you back with us. UM, help
Speaker 1: us give us your take of what's going on with
Speaker 1: the market right now, because usually when we talk to
Speaker 1: you are pretty bullish when you're looking at these technicals. Um,
Speaker 1: but we haven't talked to you since the most recent
Speaker 1: sell off and you know, close to recovery that we've
Speaker 1: seen over the last what ten days or so. What
Speaker 1: do you make of it? Yeah? Pretty amazing, right, I mean,
Speaker 1: you know we were looking at one of the larger
Speaker 1: two week bounces we've seen in years. I mean, thoughts are,
Speaker 1: like you said, kind of flatish today, but for the
Speaker 1: last couple of weeks were higher. Um. You know, there's
Speaker 1: just a lot of ways to look at it. I
Speaker 1: guess I'll start it like this. You know, the first
Speaker 1: fifty trading days of this year, the SMP five hundred
Speaker 1: was down ten percent. That's one of the worst starts ever,
Speaker 1: was sixth worst start ever two a year. You look
Speaker 1: at the other previous worst starts ever. Though we've had
Speaker 1: some really big comebacks, most recently two thousand nine and
Speaker 1: two thousand twenty, really big comebacks. And the last point
Speaker 1: on this March for whatever reason, has been kind of
Speaker 1: a bear market killer, right two thousand three, two thousand nine,
Speaker 1: two thousand twenty. So yeah, markets, markets, you know Mark
Speaker 1: Twains about you know history under Pete at the Rhymes,
Speaker 1: we think, once again we could be looking at another
Speaker 1: March low. I mean, it really feels like that and
Speaker 1: that could be an opportunity here. Um once again, why
Speaker 1: isn't this just a bear market bounce? Yeah? That the
Speaker 1: ultimate question, Carol, and I think when you look at
Speaker 1: our take is this bear market bounces there like a
Speaker 1: day or two, they're really strong. I mean, what happened
Speaker 1: last week? We had four straight days on the SMP
Speaker 1: of at least a one percent game. That is extremely
Speaker 1: rare when you go back in history, it's only happened
Speaker 1: four other times. And the two most reason we're the
Speaker 1: right at the election in twenty and then in late
Speaker 1: eighty two. When you look a year after four straight
Speaker 1: days of one percent gain in a small sample size,
Speaker 1: I'm all admit only four times, but higher at least
Speaker 1: twenty every time up twenty eight percent on average. We're
Speaker 1: not saying we're gonna be higher twenty percent a year
Speaker 1: from now. In fact, we don't probably think that, but
Speaker 1: it is saying that blast of strength we've just seen
Speaker 1: recently isn't the hallmark of a bear market balanced but
Speaker 1: likely a kind of a kickoff of potentially move bullish cycle. Well,
Speaker 1: it's interesting, and you know it's funny. Who was it?
Speaker 1: It was it um who was on our ear earlier today?
Speaker 1: Was it who mentioned? It was? It was Mike Reagan
Speaker 1: who talked about the two underday moving average and he
Speaker 1: had this caveat on the SMP. But he had a
Speaker 1: real caveat with with technical analysis right now, because there
Speaker 1: are so many fundamentals that can really change the way
Speaker 1: investors are thinking about the economy. Weather, that's rising energy prices, UH,
Speaker 1: the terrible war in Ukraine in Ukraine, UH, inflation and more. Ryan,
Speaker 1: how do you how do you balance that with the
Speaker 1: technical analysis? Oh? No, we'd agree. There's an old saying,
Speaker 1: right news Trump's charts, if you get bad news and
Speaker 1: that can that can matter more. But I think also
Speaker 1: you think about two weeks ago, just the expectations were
Speaker 1: solo record put the call ratios, headlines are terrible, Investment
Speaker 1: polls were very low, huge cash on the sidelines, all
Speaker 1: the stuff the hallmark of kind of what you tend
Speaker 1: to see near lows, and any good news that have
Speaker 1: to be like great news. There's any less bad news
Speaker 1: and you can get a rally. And let's not forget
Speaker 1: the smartest guys in the room, in my opinion, are
Speaker 1: the credit markets, right, Credit spreads, high yield, you know,
Speaker 1: investment grade spreads, they've all they've popped a little bit, yes,
Speaker 1: but they've come back significant lead. We don't think this
Speaker 1: is like a big credit event that's taken place. It's
Speaker 1: more of a standard run of the mill, you know,
Speaker 1: fifteen or so percent correction like we saw in the
Speaker 1: smp E fron Pike the trough, and that's you know,
Speaker 1: kind of what happens when you have almost rally. So
Speaker 1: we're not overly concerned when the credit markets are still
Speaker 1: pretty calm here. But we did talk about this week
Speaker 1: that as we saw kind of an upticking stocks again,
Speaker 1: that the volume was down. So it did feel like
Speaker 1: that there wasn't that much conviction despite the game. So
Speaker 1: how do you explain that, Yeah, no, you're you're right, Carol,
Speaker 1: And I'll tell I mean two years ago right now,
Speaker 1: I remember exactly two years ago now we started bouncing
Speaker 1: off the lows. We heard the same thing. Volumes low,
Speaker 1: volumes low. I mean, we're not ignoring it, but I've
Speaker 1: heard this for a while now. I mean, you know,
Speaker 1: one one other thing to think about here. Um, you
Speaker 1: know we're almost to April, and maybe volumes light, okay,
Speaker 1: but just remember April cls the strongest month the last
Speaker 1: twenty years. April is the strongest month and the last
Speaker 1: birthday month, and I just think it's maybe master birthday
Speaker 1: already acta the indicator, the indicator, and then the last
Speaker 1: ten years the second best month, so and your birthday months,
Speaker 1: so happy early birthday. But all those things to mind,
Speaker 1: there is still some seasonals that could be at play.
Speaker 1: Let's say, you know, you stay above that two day
Speaker 1: like you guys talked about, could be a little higher still. Yeah,
Speaker 1: I mean there's a fair amount of fundamental stuff. And
Speaker 1: I mean, I do think we we've talked a lot
Speaker 1: about FED policy, and I think it's fair to say,
Speaker 1: I mean there's a lot of people getting a lot
Speaker 1: more aggressive. Jo felt he was a lot more aggressive
Speaker 1: this week. Certainly Jim Bullet and even other FED officials
Speaker 1: to some extent saying, you know, we could we could
Speaker 1: see five points shift it was, but not all of them. No,
Speaker 1: not all of them. But I would I would think
Speaker 1: an aggregate, I mean, such a shift from last week
Speaker 1: he did debate at the next Some people would say,
Speaker 1: vibe shift in this stand. Could even be a food
Speaker 1: fight at the next FOMC. I doubt it. I got
Speaker 1: it all right. So where do you put new money
Speaker 1: to work? That's always kind of my you know, million dollar,
Speaker 1: billion dollar, trillion dollar question, Ryan, do you put keep
Speaker 1: it on the sidelines, just wait to see where this
Speaker 1: is going? Have you missed the bounce back at least
Speaker 1: for the time being? Um, what would you say? Yeah?
Speaker 1: First of all, I'd love to see a food fight
Speaker 1: at the set. I think they can make pay per
Speaker 1: view and make a lot of money with that one.
Speaker 1: But anyway, Um, you know, I've become only guys for
Speaker 1: a while sing we like cyclical value. That's still the
Speaker 1: camp we like. We don't think you've missed it. I mean,
Speaker 1: you know, energy industrials, materials, um financials, those groups we've
Speaker 1: liked for a long time, and they've been doing really well.
Speaker 1: We still think that's where investors probably should be tilting
Speaker 1: their portfolios are a little more even weight. As it
Speaker 1: pertains the technology. You have a big problem with it,
Speaker 1: but we just think cyclical value is still just kind
Speaker 1: of brought you to the party, and we still like
Speaker 1: like a lot of those areas going forward. You mentioned,
Speaker 1: like what's over bought or not, I mean banks or
Speaker 1: where they were in two thousand and eight, right, A
Speaker 1: lot of them are. So it's not like banks are
Speaker 1: that over bought, so they're still in our view opportunity there.
Speaker 1: You know, it's just a shame rying that you're just
Speaker 1: so negative, just kidding, just kidding, Ryan D. Trick, Thank
Speaker 1: you so much. Good to check in with you again,
Speaker 1: Ryan D. Trick, He's chef Markets Rigs over at LPL Finance.
Speaker 1: Is a good one for a Friday, Carolina. Yeah, I
Speaker 1: mean and looking at you know, some of the historical
Speaker 1: trends and certainly some of the articles are telling him
Speaker 1: I know, no, I get it. Thanks for listening to
Speaker 1: Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or
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