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Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene, along

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Speaker 1: with Jonathan Ferrell and Lisa Brownwitz Jay Leye. We bring

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Speaker 1: you insight from the best and economics, finance, investment, and

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Speaker 1: international relations. Find Bloomberg Surveillance on Apple Podcast, Suncloud, Bloomberg

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Speaker 1: dot com, and of course on the Bloomberg terminal. We

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Speaker 1: are both familiar with the heritage, we are both unfamiliar

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Speaker 1: with the products. David Bailin joining US now City Global Wealth,

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Speaker 1: Chief Investment Officer and Global head of Investments. David, let's

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Speaker 1: just talk about I think the key discussion right now

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Speaker 1: the best way, the cleanest way to get exposure, durable

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Speaker 1: exposure to a better American economy. Well, you know, first

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Speaker 1: of all, I want to be terms repairman. But other

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Speaker 1: than that, I want to think this is a pretty

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Speaker 1: extraordinary time. And you've actually hit upon a couple of

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Speaker 1: those themes. Number one is incredible revenue growth for checking

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Speaker 1: allergy companies and the benefit of course, you know, to

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Speaker 1: their stocks, but that's what's benefiting the economies. Incredible efficiency

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Speaker 1: and incredible flexibility of you know of companies, global companies

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Speaker 1: and US companies. Number two is and you use the

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Speaker 1: great example of you know of Stanley works, the the

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Speaker 1: the idea of of what growth is to come when

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Speaker 1: we talk about it economy growing six to eight percent

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Speaker 1: after a pandemic. There are two aspects to it. One

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Speaker 1: is the actually ability to spend, right, and that ability

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Speaker 1: to spend is due to household savings. And that ability

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Speaker 1: to spend is actually due to the fact that people

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Speaker 1: have not had the opportunity to leave their home to

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Speaker 1: do things, to begin doing work for themselves, right. And

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Speaker 1: what we're seeing is a pent up demand from the

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Speaker 1: consumer as well as right, an enormous amount of stimulus,

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Speaker 1: and as well as the fact that people are going

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Speaker 1: to begin to act as they did, you know, a

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Speaker 1: year and a half ago. All of that is happening

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Speaker 1: at the same time. You've asked another question I think

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Speaker 1: in your programs you know yesterday, which is what's sustainable

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Speaker 1: and that will be very interesting. Lisa talked about this

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Speaker 1: in the in the intro just now, which is, you know,

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Speaker 1: some companies are gonna be able to keep this boost

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Speaker 1: of revenue a company like UPS reporting extraordinary UHR shipments

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Speaker 1: and things like that. The to the extent that people

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Speaker 1: continue to work from home, that will continue to take place.

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Speaker 1: And so this change of behavior that's definitely going to

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Speaker 1: be underway for the next couple of years that have

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Speaker 1: challenged that's gonna be a big deal. The more people

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Speaker 1: are adapting to work in the future based upon what

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Speaker 1: they learned in the pandemic, the more we have this

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Speaker 1: sustainable revenue growth that you're seeing now, David, the big

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Speaker 1: fear out there. I want you to address this. And

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Speaker 1: we see this a along the way for different reasons.

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Speaker 1: But now front centers, margin compression o MG units price

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Speaker 1: revenue down we go and on the income statement, we're

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Speaker 1: gonna see some forms of margin compression. I don't see it. Well,

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Speaker 1: I do see it, and I think you're gonna see

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Speaker 1: it on a temporary basis, as certain things are are

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Speaker 1: really in short supply, you know, when the economy reopened.

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Speaker 1: The other thing is we're going to have all of

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Speaker 1: the inputs except for or except for labor. All of

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Speaker 1: the inputs are going to go up a great yield

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Speaker 1: in terms of their costs, right, all of the commodities,

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Speaker 1: the cost of actually shipping goods and services. The fact

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Speaker 1: that there is going to be you know, a way

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Speaker 1: I put it sixteen months of inventory needs to be

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Speaker 1: produced in twelve months to not only satisfy current demand,

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Speaker 1: but to refill the supply pipeline. All of that's going

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Speaker 1: to take place now, and that will cause some delays,

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Speaker 1: and it also will cause prices to go up. I

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Speaker 1: also believe you, however, that this will be passed through

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Speaker 1: to the consumer because the leaders are going to compression. Now.

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Speaker 1: That brings up the idea of inflation. People talk about it,

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Speaker 1: and there will be I think temporary inflation for the

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Speaker 1: course of the next twelve to eighteen months. We want

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Speaker 1: our clients to own tips right now. And the only

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Speaker 1: thing we really love in the fixed income market other

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Speaker 1: than high yield our tips because they actually will capture

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Speaker 1: this type of consumer inflation. But it will be forever.

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Speaker 1: It'll just be for this particular boost of time well.

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Speaker 1: And the temporary inflation boost hinges in the idea that

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Speaker 1: we're not going to get a material shift in the economy.

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Speaker 1: And here you had Google yesterday announcing a fifty dollar

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Speaker 1: fifty billion dollars share buy back. Is that good or

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Speaker 1: bad for you as investor? After all of these investors

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Speaker 1: that they wanted to see investment in the infrastructure of

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Speaker 1: companies the investment in actual productivity going forward. Share buybacks

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Speaker 1: doesn't get that done. Well, they really don't have much

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Speaker 1: of a choice when you're just handed, you know, literally

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Speaker 1: boatloads of cash because of the fact that your investment

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Speaker 1: is in human capital. If you think about it, that is,

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Speaker 1: you know, they have excess cash. They're doing buy backs.

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Speaker 1: Who else does it benefit? Well, it benefits all of

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Speaker 1: their employees as well. They simply don't have the internal

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Speaker 1: research and development costs that are required necessary to sustain

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Speaker 1: the growth that they have. It's not going to be

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Speaker 1: building new manufacturing plants. It's gonna be hiring new human capital.

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Speaker 1: And they will do that, and that's why they're going

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Speaker 1: to benefit both their shareholders and their employees by doing so.

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Speaker 1: David always gonna catch these quite a catch up on

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Speaker 1: this market. So, David By in the City Global webt

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Speaker 1: c IO, global head of Investments, we begin with Torsten

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Speaker 1: Slack with Apollo Global Management and their chief of animus

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Speaker 1: towards then when you see this data in the historic

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Speaker 1: moment of trade, are you elevating your g d P

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Speaker 1: estimates and lengthening the boom economy? Well, it is certainly

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Speaker 1: very revealing for how strong the economy is when imports

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Speaker 1: go up so much. It is certainly, as Lisa was saying,

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Speaker 1: a very strong sign that the stimulus checks have been

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Speaker 1: buying a lot of consumer goods that's been showing up

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Speaker 1: in trade. We also have generally speaking that the economy

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Speaker 1: is getting a lot of tail wind from excess savings

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Speaker 1: at the corporate sector, ex savings to the household sector.

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Speaker 1: And on top of that the reopening of course just

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Speaker 1: continuous and now with the discussions now just just today

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Speaker 1: of the mass mandates changing. So this economy is is

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Speaker 1: doing very well. And the numbers this morning on the

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Speaker 1: trade bat and just confirms that this is your picture

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Speaker 1: of the ball underwater that's coming up is certainly a

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Speaker 1: good analogy. We aren't seeing an economy that's coming back

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Speaker 1: very strongly. Let's talk about inflation, price pressure. As you

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Speaker 1: pointed out, Sosten, this isn't just base effects. It's too

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Speaker 1: easy to sit here. It's almost lazy just to say

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Speaker 1: it's the base effects. We all know the base effects.

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Speaker 1: It's more than that, isn't it. It is? And I

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Speaker 1: think this is a very very important discussion for today.

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Speaker 1: As Mike was all Mike McKee just was mentioning for

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Speaker 1: the press conference and the FIT, I mean, the FAT

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Speaker 1: will continue to tell the dobish story about the unemployer

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Speaker 1: rate is still six percent. This is just base effects.

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Speaker 1: There is nothing really to worry about here in the

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Speaker 1: near term. We're still waiting for the economy to come

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Speaker 1: back to full capacity or the unemployer rate to come

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Speaker 1: back to a lower level, which could be around three

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Speaker 1: and a half percent, which we were pre pandemic. But

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Speaker 1: as you're saying, John, if you look at the data

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Speaker 1: for a number of different indicators, not only UH invasion

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Speaker 1: expectations going up for the household sector, you're also seeing

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Speaker 1: that it's getting very difficult to find workers. Some companies

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Speaker 1: are out paying workers just to show up on an interview.

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Speaker 1: You're also seeing in a number of different indicators when

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Speaker 1: it comes to the i M the regional FITS surveys

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Speaker 1: from the Richmond FED, from the Denver I'm sorry they

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Speaker 1: tellas FIT, and then the area in particular, but also

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Speaker 1: the Kansas City FIT. They have shown significant pressure in

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Speaker 1: particularly the manufacturing sector, and all this is pointing to

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Speaker 1: higher input costs and as you just poke about copper prices,

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Speaker 1: that makes it more expensive to produce, and the big

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Speaker 1: question is what happens if input costs go up. The

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Speaker 1: two things can happen. Either margins can get squeezed or

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Speaker 1: selling prices meaning inflation can go up. And we are

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Speaker 1: seeing more signs of this not just being base effects.

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Speaker 1: There is very strong demanding the economy pushing prices higher.

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Speaker 1: So how much you around look different to the federals

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Speaker 1: serves right now, Tusten. So I think that in the

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Speaker 1: near term, and if I type e CFC, go on

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Speaker 1: my Bloomberg screen and I do the quarterly profile of

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Speaker 1: how does the consensus expect copy CEO over the next

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Speaker 1: level quarters, it is quite impressive that the expectation is

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Speaker 1: inflation will go up in the next quarter or two

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Speaker 1: and then it will come down and be exactly two

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Speaker 1: going into the end of this year and into the

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Speaker 1: next GM. I think the risks are beginning to rise

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Speaker 1: that Larry Summers is right, Oh it's only blank. Shah

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Speaker 1: has been saying this is not just overheating. There's a

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Speaker 1: risk this is like starting a fire. So there is

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Speaker 1: a chance that inflation could be overshooting two percent. And

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Speaker 1: if it might continue to say well that's okay, we

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Speaker 1: have flexible average inflations are getting we are allowing inflation

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Speaker 1: to overshoot. But the big, big question is if long

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Speaker 1: breaks also joy going to take a relatively relaxed approach

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Speaker 1: to inflation overshooting two percent. So I would say John,

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Speaker 1: to your question that the key issue here really is

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Speaker 1: that inflation does begin to overshoot two percent for an

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Speaker 1: extended period. One does need to look very carefully and

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Speaker 1: how long raids. A long race just say okay, that's

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Speaker 1: all right, we accept that, or a long race begin

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Speaker 1: to say, well, wait a minute. If I'm a bond

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Speaker 1: investor and I see higher inflation, that it wrote my

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Speaker 1: returns and therefore I need to be compensated for that risk.

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Speaker 1: What does an inflation fire look like? Not just burning hot,

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Speaker 1: but a fire. I mean, are we heading back to

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Speaker 1: nineteen seventies? When we say that, people scream, no way,

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Speaker 1: We're no way heading back to that. But purse out

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Speaker 1: the new inflation fire. Yeah, that's a very important questions.

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Speaker 1: I would say, the new inflation fire, it's very similar

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Speaker 1: to what we had in the late sixties, where inflation

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Speaker 1: gradually went up and it stayed at a relatively elevated level.

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Speaker 1: In this world we live in, today. The levels of inflation,

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Speaker 1: of course are different readsiveto we had in the late

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Speaker 1: sixties from sixty five to nine seventy, But in my book,

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Speaker 1: that would be inflation at all above two and a

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Speaker 1: half on core pc, which as you know, is the

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Speaker 1: first preferred measure of inflation. If we get to those levels,

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Speaker 1: and in particularly we get there just for several months,

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Speaker 1: then I do think that bond investors will really start

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Speaker 1: to become worried. That's not my baseline scenario. I still

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Speaker 1: think that inflation is under control, but we do have

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Speaker 1: a few months here where we could risk some turbulence

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Speaker 1: in credit, in equities, in risky assets because of this

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Speaker 1: issue that rates risks and inflation risks are more elevated.

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Speaker 1: And the final point of this is, I have a

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Speaker 1: look at your Blueberg screen on rates. Vall implied vault

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Speaker 1: in rates is very very elevated. So the moving decks,

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Speaker 1: for example, is very elevated. Ready to say BIGGS, which

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Speaker 1: has just come down. So what is the shock that

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Speaker 1: people are so worried about in rates markets that people

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Speaker 1: in equity markets don't seem to care too much about

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Speaker 1: saying things with creditble it's also very low, so there

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Speaker 1: is a disconnect between polativity implied BA in braids market

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Speaker 1: is very high rereative to how do imply ball actually

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Speaker 1: is in almost all risky assets. I think that's telling

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Speaker 1: us something about how investors are thinking about the inflation

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Speaker 1: risks for the next several months. It Tolsten really really

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Speaker 1: ready smart Toustin's look that Apollo Global Management chief economist

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Speaker 1: right now in Washington, Isaac Boltanski with us with a

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Speaker 1: compass point, with a very sharp note, and he really

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Speaker 1: I love the phrase, Isaac, from rhetoric to reality, the

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Speaker 1: idea that we're loaded with rhetoric tonight. When does the

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Speaker 1: reality click in eleven PM tonight or do we have

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Speaker 1: to wait eleven weeks? I would argue it's already starting

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Speaker 1: to click in at least that's my takeaway from from

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Speaker 1: investor calls. You know what we're gonna get tonight, Tom

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Speaker 1: is an incredibly ambitious and expansive proposal that would you know,

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Speaker 1: intended to remake our economy in a way that we

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Speaker 1: haven't seen since since a Great Society and their lb J.

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Speaker 1: The reality is it's not going to happen. And one

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Speaker 1: of my favorite lines and the one that I think

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Speaker 1: we should keep in mind as we listen to the

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Speaker 1: president's speak is the President proposes, the Congress disposes, and

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Speaker 1: really the question for investors remains what will Congress agree to?

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Speaker 1: And the subtext there is what will the centrist Democrats

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Speaker 1: in the Senate allow? Okay, but I want to go

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Speaker 1: out to your climb of Ohio Wesleyan University. I mean,

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Speaker 1: they've got to sell this thing out where maybe the

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Speaker 1: election is actually pretty close as well. How do the

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Speaker 1: moderate Democrats were around the acreage of Ohio Wesleyan adapt

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Speaker 1: to their president and to their liberal wing. I think

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Speaker 1: that the main point there is that, and this is

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Speaker 1: I think an important timing point to highlight is that

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Speaker 1: Infrastructure Week is going to last another five months or

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Speaker 1: so tom It's going to be iterative, it's going to

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Speaker 1: be time consuming, it will include myriad bruising fights over

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Speaker 1: really detailed and nuanced see issues from like tid exchanges

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Speaker 1: all the way to that basis. It's going to take

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Speaker 1: another I think five months, most likely until September or

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Speaker 1: October to get something done. But my view is that

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Speaker 1: there is a window of both political and legislative opportunity

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Speaker 1: that Democrats will seize on and that we will get something.

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Speaker 1: We're not going to get what the President calls for tonight,

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Speaker 1: but we will get something of significant. Isaac, giving your

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Speaker 1: experience in Washington, d C. What is likely between the

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Speaker 1: two point three trillion dollar infrastructure spending the one point

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Speaker 1: a trillion doll our American Families plan, what's realistic? Look,

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Speaker 1: I think that right now we should focus on physical infrastructure.

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Speaker 1: I think that that clearly has a considerable amount of

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Speaker 1: support on Capitol Hill. Uh. I think there's actually bipartisan

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Speaker 1: negotiation now, even though I wouldn't bet on that, I

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Speaker 1: still think that we have to go through reconcstiliation. So

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Speaker 1: I think we should focus on physical infrastructure, and then

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Speaker 1: on the tax side. Here's my framework. Any thing that's

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Speaker 1: seen is narrowing the gap between wealth and work has

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Speaker 1: a highlihood of being included in the final package because

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Speaker 1: it dove tails with the Democratic economic fairness agenda. So

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Speaker 1: here I'm talking about the higher tax bracket. I'm talking

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Speaker 1: about the increase in capital gains. I'm talking about the

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Speaker 1: end of stepped up basis. Well, let's put some numbers

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Speaker 1: on that, equalizing the treatment of earnings and capital gains.

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Speaker 1: The band is quite wide the spread is quite wide

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Speaker 1: right now, Isaac, how narrow do you expect the spreads together?

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Speaker 1: What kind of numbers are you thinking about? Yeah, Look,

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Speaker 1: I think that anything that we here tonight should always

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Speaker 1: be viewed as a negotiating um marker, not a red line,

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Speaker 1: and I think the White House has been clear about that.

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Speaker 1: So we will not see a capital gains rate of

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Speaker 1: of for I think that ultimately that will be negotiated

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Speaker 1: down um to something closer to range. I think there

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Speaker 1: are a number of reasons for that. We have the

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Speaker 1: same interest democrats, but also I think there's an awareness

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Speaker 1: that we want to incentivize long term investment. Furthermore, there's

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Speaker 1: an equilibrium where if you raise it too high, no

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Speaker 1: one wants to sell, and so I really think it's

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Speaker 1: fair to assume percent on that end again for the

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Speaker 1: highest earner. Well, let me just add an additional question

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Speaker 1: and then, Isaac, because what they're trying to achieve is

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Speaker 1: to close that carried interest loophole as well. And from

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Speaker 1: what I can tell, and you tell me if your

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Speaker 1: interpretation is different, that they're trying to do that by

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Speaker 1: equalizing the treatment of capital gangt in wages and the

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Speaker 1: end outcome would be closing that loophole. Now, if they

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Speaker 1: can't equalize that, can they just close the loophole by

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Speaker 1: doing something else? And do you think they should do that? Yeah,

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Speaker 1: I think you have a nail on the head and

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Speaker 1: it's highlighted in the fact sheet here. Their focus is

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Speaker 1: really on capital income broadly, and so capital gains and

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Speaker 1: dividends by the way, we're included. And if we just

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Speaker 1: talked about increasing that threshold and ending stepped up basis,

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Speaker 1: he really handled the carried interest issue in its own

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Speaker 1: right now. I'm telling you I don't think that they

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Speaker 1: all the way to treating his ordinary income. So there

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Speaker 1: will be a focus on a more narrow fix to

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Speaker 1: carry interests as well. I think this time Democrats are

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Speaker 1: finally prepared to close that, especially with the overarching changes

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Speaker 1: to the rate for capital gains. And again I can't

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Speaker 1: underscore how important it is the end of stepped up basis.

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Speaker 1: Isaac got to catch up. Go ahead from you. I

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Speaker 1: was about Tansky taking the realist approach to the situation

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Speaker 1: down in Washington, d C. Will Power joins now from

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Speaker 1: Beard really been looking forward to this. With this outperform

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Speaker 1: on Apple, Will I want to note the privatization of Apple.

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Speaker 1: Since two thousand and twelve, they've eliminated a very large

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Speaker 1: percentage of their shares are down to seventeen jillion right now.

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Speaker 1: Share buybacks are part of the fabric there. Do you

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Speaker 1: just assume that continues in this boom economy. It's Tom's

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Speaker 1: great to be here, thanks again for having me. I

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Speaker 1: think the answer to the sort of answer is yes.

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Speaker 1: I think it has become a key piece of the

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Speaker 1: fabric of the company, and the reality is become a

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Speaker 1: good way to try to help reward shareholders with the

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Speaker 1: prodigious cash really that they continued to produce. And this

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Speaker 1: is a company that we forecast produced free cash flow

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Speaker 1: approaching eighty billion dollars, and despite spending a lot on

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Speaker 1: R and D and other growth initiatives, they continue to

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Speaker 1: produce excess cash. And I think, as you know, they've

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Speaker 1: had a policy to try to turn that net cash

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Speaker 1: position to neutral or effectively zero, and that suggests we're

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Speaker 1: going to continue to see aggressive buybacks. They've approached called,

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Speaker 1: you know, thirty billion dollars a quarter. We expect that

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Speaker 1: to continue going forward. Are they going to announce a

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Speaker 1: dividend increase today? I've seen that out in the zeitgeist.

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Speaker 1: And if they do that, do they reaffirm their position

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Speaker 1: by making it a near double digit dividend increase. That's

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Speaker 1: a good question. It's not gonna surprise me if we

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Speaker 1: see it did a dividend increase, whether it's double digit

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Speaker 1: or not, I don't know what my suspicion is. We'll see,

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Speaker 1: uh an additional kind of double data, if you will,

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Speaker 1: on commitment both buy back and dividend increase, and I

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Speaker 1: think it's likely we'll get that as part of their owning.

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Speaker 1: Theres no official announcement of respect. Well, what did you

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Speaker 1: make of the announcement yesterday or earlier this week from

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Speaker 1: Apple that they were going to invest four hundred thirty

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Speaker 1: billion dollars. I can't even say it's that much in

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Speaker 1: US infrastructure. Well, look, it's a commitment to the United

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Speaker 1: States and investment generally, right, because certainly making investments outside

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Speaker 1: of the United you know States as well. I'm sure

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Speaker 1: there's a political angle to that as well. I think

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Speaker 1: they like to emphasize the fact that they are a

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Speaker 1: significant taxpayer already give it all the tacks that they're

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Speaker 1: taking on the regulatory front. But I think it also

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Speaker 1: just speaks to the compidence they have in the business

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Speaker 1: going forward, right, and investments they want to make to

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Speaker 1: ensure they have the production capabilities, the skill sets UH

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Speaker 1: in R and D investment they need to continue to

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Speaker 1: remain in a leadership position. Well, and Tom accused me

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Speaker 1: perhaps of being a little bit cynical yesterday because my

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Speaker 1: immediate reaction was, this is entirely a PR move ahead

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Speaker 1: of different antitrust regulations potentially coming down the pike, as

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Speaker 1: well as higher taxes. And yet how much does this

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Speaker 1: sort of underscore the supply chain pressures that we expect

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Speaker 1: to hear about in today's earnings release. Well, I think

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Speaker 1: that's certainly an element of the two Right, and Apple's

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Speaker 1: a company that's been a master of supply chain over

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Speaker 1: the years and has continued to look for ways to

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Speaker 1: diversify of supply chain. And I think you're right. I

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Speaker 1: think there is an element of PR. We've we've seen

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Speaker 1: similar announcements to the batter three hundred fifty billion dollars

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Speaker 1: and the like over the past, you know, couple of

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Speaker 1: years respective commitment. So I think it continues down that

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Speaker 1: path you know they've been on in terms of laying

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Speaker 1: out a longer term vision. And again I think also

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Speaker 1: as I said, you know, I think speaks to the

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Speaker 1: competence of the business and the opportunity opportunities they still

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Speaker 1: see ahead. Real part of the last him around the

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Speaker 1: Joy was it rebuild in Asia, not just China and

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Speaker 1: Asia in general. Do you look for a further recovery

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Speaker 1: of their Asian growth? Well, I think they've continued to

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Speaker 1: see success across the globe. I mean, I when you

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Speaker 1: look at the uh, you know, the terrible situation in

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Speaker 1: India and Brazil and some of these other geographies, and

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Speaker 1: you know, it's unclear to what degree they get impacted

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Speaker 1: short term, um, you know from COVID, So that's still

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Speaker 1: a wild card geography, uh, you know, by geography, but

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Speaker 1: it is best we can tell demand remains robust across

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Speaker 1: product lines and across geographies. You know, we're get expecting

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Speaker 1: twenty percent plus growth across you know, really all the

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Speaker 1: product lines move into this quarter, and I think solid

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Speaker 1: growth across pos as well. I gotta make some news

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Speaker 1: here will power your targets to one fifty five. But

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Speaker 1: what's your some of the parts valuation when you break

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Speaker 1: this down and your value services and all the rest

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Speaker 1: of it and all the products and that what's your

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Speaker 1: some of the parts statistic? Yeah, well top a good question.

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Speaker 1: You know. Look, I mean I think one of the

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Speaker 1: things to call out here is if you look at

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Speaker 1: wearables and services on a combined basis, that's almost a

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Speaker 1: hundred billion dollar business. How much is that share wearables

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Speaker 1: and in the stuff Lisa Bce, how much does that

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Speaker 1: for share? Yeah, well, I'd have to go back and

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Speaker 1: do that math and come back to come on, you know,

396
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Speaker 1: on a first air basis, but I can tell you

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Speaker 1: a revenue basis, it's almost a third of the business

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Speaker 1: and on a combined basis doing no right and that's

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Speaker 1: what's helping ding ship. Yeah, talk like an economist. We're

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Speaker 1: not going to get a straight answer out of wheel

401
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Speaker 1: power to them. All I could say is that my

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Speaker 1: tech cash is probably less robust than vet bills. There

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Speaker 1: is a question, if you want to talk like an economist, Well,

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Speaker 1: when you zoom out, a lot of people say, especially

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Speaker 1: with tech stock valuations, they've gotten somewhat divorced from fundamentals. Yes,

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Speaker 1: fundamentals look amazing, and yet the valuation is hinged very

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Speaker 1: much on yields remaining This low on inflation remaining low.

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Speaker 1: What's your view on that. How vulnerable are apples shares

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Speaker 1: to the idea of yields moving materially higher. I think

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Speaker 1: less vulnerable than some of my hyper growth names, so

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Speaker 1: you know, as an example, I cover many of the

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Speaker 1: high growth software SASS names and names like Zoo, Ring, Central, Trulia, right,

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Speaker 1: which were all rocket ships last year, but they've been

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Speaker 1: under more to rest due to rising interest rate, and

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Speaker 1: so I can't be I think it's a much bigger

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Speaker 1: focus there than it is on some of the big

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Speaker 1: tech names. And the tax rate will be something to watch.

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Speaker 1: Something with Apple and some of other big tech names

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Speaker 1: against the kind of speaks of the fact that they

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Speaker 1: pay us afficant uh you know percentage of profits uh,

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Speaker 1: you know out in taxes. So it's certainly starting to

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Speaker 1: keep an eye and as a pertaining to the broader

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Speaker 1: market in the text space, I think, you know, a

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Speaker 1: bigger impact on the true high high growth names Apples

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Speaker 1: growing at a much faster page right now. Um, I

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Speaker 1: think buying large and seeing still as a as a

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Speaker 1: double digit law term or at this point, well, when

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Speaker 1: you talk about taxes, what would have a bigger impact

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Speaker 1: in your view, a higher overall tax rate or closing

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Speaker 1: some of the loopholes that big tech companies have enjoyed

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Speaker 1: to evade or to get away from some of the

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Speaker 1: high taxation rates. Yeah, that's a good question, and I'm

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Speaker 1: not sure I have the perfect answer to that. I

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00:22:12,400 --> 00:22:15,920
Speaker 1: think it's probably you know, the higher tax rate um overall.

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00:22:15,960 --> 00:22:18,320
Speaker 1: And again think is Apple points out, you know they

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00:22:18,400 --> 00:22:21,320
Speaker 1: believe to the highest proble taxpayer in America, you know

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00:22:21,480 --> 00:22:23,879
Speaker 1: already right, So it just at some level they're not

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00:22:24,000 --> 00:22:27,040
Speaker 1: using perhaps every single loophole that perhaps, uh, you know

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00:22:27,200 --> 00:22:29,800
Speaker 1: they could, but but you know they all companies are

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00:22:29,800 --> 00:22:33,320
Speaker 1: always gonna look to try to maximize right there, the profits. Well,

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Speaker 1: Mrs Keene emails in and she wants to know it

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00:22:36,240 --> 00:22:38,800
Speaker 1: hit her like you when you go to these roads

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00:22:38,840 --> 00:22:41,080
Speaker 1: shows and you do all your Apple chit chit chat

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00:22:41,200 --> 00:22:44,760
Speaker 1: and all that. Do you get like the Airmas Thermas

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00:22:44,960 --> 00:22:47,960
Speaker 1: watch swag? Do you get like the watch bands? Some

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00:22:48,080 --> 00:22:52,320
Speaker 1: mermaz at four hundred eighty nine dollars for the watch band.

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00:22:53,840 --> 00:22:56,240
Speaker 1: I know, I'm like everybody else, I'm still paying for it.

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00:22:56,240 --> 00:22:57,760
Speaker 1: If you want to talk to you know, Tim Cook

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00:22:57,800 --> 00:22:59,520
Speaker 1: about that for me, you know that'd be great. I'd

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00:22:59,560 --> 00:23:01,280
Speaker 1: love to build to test out some of those products.

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00:23:01,320 --> 00:23:03,040
Speaker 1: We'll do that. When we talked, yeah, I mean I

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00:23:03,119 --> 00:23:06,960
Speaker 1: mean if I'm sorry, Lisa, that just says I mean dollars.

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Speaker 1: Lisa is a watch band, That says Lisa bramowoods, Oh, yeah,

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Speaker 1: you know me. It's basically how much is that air

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00:23:12,440 --> 00:23:14,240
Speaker 1: tag again? John? You said it was something like four

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Speaker 1: hundred dollars. Happened to this conversation this morning run will

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Speaker 1: Power best Sadia Research analyst. Thank you said. This is

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00:23:22,160 --> 00:23:26,120
Speaker 1: the Bloomberg Surveillance Podcast. Thanks for listening. Join us live

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00:23:26,320 --> 00:23:30,040
Speaker 1: weekdays from seven to ten am Eastern on Bloomberg Radio

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00:23:30,280 --> 00:23:33,880
Speaker 1: and on Bloomberg Television each day from six to nine

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00:23:33,920 --> 00:23:38,320
Speaker 1: am for insight from the best in economics, finance, investment,

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00:23:38,520 --> 00:23:43,520
Speaker 1: and international relations. And subscribe to the Surveillance podcast on

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00:23:43,600 --> 00:23:47,440
Speaker 1: Apple podcast, SoundCloud, Bloomberg dot com, and of course, on

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00:23:47,560 --> 00:23:51,679
Speaker 1: the terminal. I'm Tom Keene, and this is Bloomberg