1 00:00:02,520 --> 00:00:07,640 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:20,400 --> 00:00:23,400 Speaker 2: This is Wall Street Week. I'm David Weston bringing you 3 00:00:23,480 --> 00:00:26,880 Speaker 2: stories of capitalism. When FED officials made their way to 4 00:00:26,960 --> 00:00:30,040 Speaker 2: Jackson Hole this week, they were helping support the richest 5 00:00:30,080 --> 00:00:32,760 Speaker 2: county in the country. We look at how it got 6 00:00:32,800 --> 00:00:35,360 Speaker 2: that way and what it tells us about the rest 7 00:00:35,520 --> 00:00:38,680 Speaker 2: of the US economy. Plus, it turns out that news 8 00:00:38,720 --> 00:00:41,920 Speaker 2: of the death of fossil fuels was greatly exaggerated. We 9 00:00:42,000 --> 00:00:45,280 Speaker 2: talk with Chevron chairman and CEO Mike Worth about the 10 00:00:45,320 --> 00:00:48,400 Speaker 2: future of his industry and how his big acquisition of 11 00:00:48,440 --> 00:00:52,239 Speaker 2: Hess sets his company up for what comes next. And 12 00:00:52,360 --> 00:00:54,560 Speaker 2: Wall Street, or at least part of it, may be 13 00:00:54,680 --> 00:00:58,800 Speaker 2: moving south. No, not to Miami, but to Dallas. What 14 00:00:58,920 --> 00:01:01,800 Speaker 2: is the city doing to the financial sector and how 15 00:01:01,840 --> 00:01:04,120 Speaker 2: far does it have to go to catch New York. 16 00:01:04,920 --> 00:01:07,640 Speaker 2: But we start with those FED meetings in Jackson Hall 17 00:01:07,920 --> 00:01:11,160 Speaker 2: and Chair Powell's remarks for a review, We turned a 18 00:01:11,200 --> 00:01:14,279 Speaker 2: former governor of the Reserve Bank of India, Raghuram Rajen 19 00:01:14,680 --> 00:01:16,319 Speaker 2: now at Chicago's Booth School. 20 00:01:18,560 --> 00:01:21,440 Speaker 3: Well, this was a very finely balanced speech. 21 00:01:22,040 --> 00:01:26,480 Speaker 4: I think he had to emphasize that the FED is 22 00:01:26,600 --> 00:01:30,959 Speaker 4: still looking for more data At the same time, he 23 00:01:31,000 --> 00:01:34,480 Speaker 4: had to acknowledge the fact that, you know, there's a 24 00:01:34,480 --> 00:01:39,920 Speaker 4: lot of pressure on the FED to essentially acquiesce to 25 00:01:39,959 --> 00:01:42,759 Speaker 4: the government and cut raids. So he had to nod 26 00:01:42,800 --> 00:01:46,320 Speaker 4: to both sides, saying, the FED will do what it 27 00:01:46,360 --> 00:01:49,560 Speaker 4: has to do, but it's not ignoring the government. 28 00:01:50,080 --> 00:01:52,440 Speaker 3: And there that's why I. 29 00:01:52,360 --> 00:01:55,520 Speaker 4: Think it was actually quite masterful the way he managed 30 00:01:55,560 --> 00:02:03,360 Speaker 4: to sway expectations but slightly more towards a cut, but 31 00:02:03,640 --> 00:02:06,880 Speaker 4: with a subtle change in words. What he said was, 32 00:02:07,160 --> 00:02:10,520 Speaker 4: and I'm going to read this, the shifting balance of 33 00:02:10,680 --> 00:02:14,560 Speaker 4: risks may warrant adjusting our policy stunts. 34 00:02:14,720 --> 00:02:16,160 Speaker 3: Note the word me. 35 00:02:16,800 --> 00:02:19,720 Speaker 4: That means he's not committing to it, but he's saying 36 00:02:19,960 --> 00:02:22,960 Speaker 4: we're bending a little more towards cutting in September. 37 00:02:23,400 --> 00:02:26,400 Speaker 2: So that balance of risk shifting, I think towards the 38 00:02:26,440 --> 00:02:29,760 Speaker 2: possibility of cut. I think specifically with respect to labor. 39 00:02:30,000 --> 00:02:32,280 Speaker 2: And he did talk about the balance of risk on 40 00:02:32,400 --> 00:02:36,160 Speaker 2: labor tilting to the downside, even as inflation risks is 41 00:02:36,200 --> 00:02:38,840 Speaker 2: the upside. What's your take on the shape of the 42 00:02:39,000 --> 00:02:40,800 Speaker 2: US labor market today. 43 00:02:41,200 --> 00:02:45,720 Speaker 4: Well, it does look like it's softening now, you know, 44 00:02:45,760 --> 00:02:50,480 Speaker 4: you don't see layoffs in a big way. Yet, what 45 00:02:50,520 --> 00:02:53,400 Speaker 4: you do see is the base of hiring has been 46 00:02:53,480 --> 00:02:59,520 Speaker 4: relatively slow, and partly because of the fact that immigration 47 00:02:59,720 --> 00:03:03,280 Speaker 4: has come down a lot, the labor force is not 48 00:03:03,440 --> 00:03:07,160 Speaker 4: growing so much. So even with the low pace of hiring, 49 00:03:07,200 --> 00:03:11,120 Speaker 4: you're not seeing unemployment go up. What that means, I 50 00:03:11,160 --> 00:03:15,919 Speaker 4: think from his perspective is that labor market is weak 51 00:03:16,080 --> 00:03:22,880 Speaker 4: enough that he doesn't see a substantial increase because of 52 00:03:23,000 --> 00:03:26,520 Speaker 4: second round effects of inflation. Now, this is central banks 53 00:03:26,560 --> 00:03:31,240 Speaker 4: speak for saying, look, TIFFs are going to push inflation up, 54 00:03:31,760 --> 00:03:36,560 Speaker 4: but what we really worry about is the worker asking 55 00:03:36,600 --> 00:03:40,840 Speaker 4: for higher wages, which creates more inflation down the line. 56 00:03:41,160 --> 00:03:44,720 Speaker 4: He discounted that in his speech, saying he doesn't see 57 00:03:45,240 --> 00:03:49,480 Speaker 4: that that will push inflation up because labor market, the 58 00:03:49,560 --> 00:03:52,240 Speaker 4: labor market is relatively weak at this point. 59 00:03:53,040 --> 00:03:56,880 Speaker 2: At the same time, we do have core inflation that's 60 00:03:56,920 --> 00:04:00,480 Speaker 2: well above that two percent target that he reiterated once again, 61 00:04:01,280 --> 00:04:04,200 Speaker 2: what was the last time that the Federal Reserve cut 62 00:04:04,320 --> 00:04:07,680 Speaker 2: rates with the core inflation at that level. 63 00:04:08,280 --> 00:04:10,960 Speaker 4: Well, it's not just that it has that it is 64 00:04:11,000 --> 00:04:14,040 Speaker 4: at that level, it is that it hasn't budged downwards 65 00:04:14,360 --> 00:04:17,320 Speaker 4: for quite some time. In fact, the last readings looked 66 00:04:17,360 --> 00:04:21,440 Speaker 4: like they're going upwards. That was the point where I 67 00:04:21,760 --> 00:04:26,720 Speaker 4: concluded that he was being quite dubvish, because there's no 68 00:04:26,880 --> 00:04:30,479 Speaker 4: mention of the fact that we haven't seen a downward 69 00:04:30,640 --> 00:04:34,760 Speaker 4: adjustment in inflation. Typically central banks cut when they see 70 00:04:35,720 --> 00:04:38,640 Speaker 4: inflation coming down. That puts a lot of weight on 71 00:04:38,839 --> 00:04:43,839 Speaker 4: weakness in the labor market, bringing inflation down further into 72 00:04:44,440 --> 00:04:47,400 Speaker 4: the Fed's comfort zone. There is no evidence for that 73 00:04:47,520 --> 00:04:50,640 Speaker 4: at this point. It is a hope. 74 00:04:51,040 --> 00:04:55,320 Speaker 2: We have ambiguous or even conflicting data on inflation on 75 00:04:55,360 --> 00:04:57,719 Speaker 2: the one hand, labor on the other. And that's against 76 00:04:57,760 --> 00:05:01,120 Speaker 2: the backdrop of a fair amount of uncertainty, particularly uncertainty 77 00:05:01,160 --> 00:05:04,359 Speaker 2: because the Trump administration is really quite explicitly trying to 78 00:05:04,480 --> 00:05:08,360 Speaker 2: change the narrative, particularly with tariffs. What about the risk 79 00:05:08,440 --> 00:05:10,520 Speaker 2: of tariffs. How much of have we seen? How much 80 00:05:10,520 --> 00:05:11,440 Speaker 2: of a risk is suppose? 81 00:05:12,200 --> 00:05:15,280 Speaker 3: Well, we haven't seen a lot. 82 00:05:15,440 --> 00:05:20,159 Speaker 4: Though one should note and chair out noted that goods 83 00:05:20,240 --> 00:05:25,400 Speaker 4: inflation which was coming down, actually it was not inflation. 84 00:05:25,880 --> 00:05:29,520 Speaker 4: Goods prices were coming down, so inflation was negative. That 85 00:05:29,560 --> 00:05:33,360 Speaker 4: has shifted around to a positive rate of inflation on goods. 86 00:05:33,960 --> 00:05:38,400 Speaker 4: We still haven't seen a full pass through of the 87 00:05:38,640 --> 00:05:45,479 Speaker 4: tariffs into prices that is coming, and the chair said, look, 88 00:05:46,440 --> 00:05:49,039 Speaker 4: we think it is going to be a one off. 89 00:05:49,960 --> 00:05:51,640 Speaker 3: What we worry about. 90 00:05:51,600 --> 00:05:56,880 Speaker 4: Is it either feeding into inflationary expectations, that is, people 91 00:05:56,960 --> 00:06:00,240 Speaker 4: think inflation is going to be higher, or it leads 92 00:06:00,279 --> 00:06:04,440 Speaker 4: into wages through a tight labor market. He discounted the 93 00:06:04,480 --> 00:06:09,000 Speaker 4: tight labor market issue, but he said inflationary expectations. We're 94 00:06:09,000 --> 00:06:11,640 Speaker 4: going to be watching that and we certainly will do 95 00:06:11,720 --> 00:06:16,279 Speaker 4: what it takes to keep inflationary expectations anchored. Broadly, he 96 00:06:16,320 --> 00:06:20,039 Speaker 4: seemed to suggest that tariffs were manageable. What he didn't 97 00:06:20,080 --> 00:06:22,599 Speaker 4: talk about, as we've said before, is that he didn't 98 00:06:22,640 --> 00:06:25,200 Speaker 4: talk about the fact that inflation is way higher than 99 00:06:25,240 --> 00:06:26,880 Speaker 4: the FED should be comfortable with. 100 00:06:28,480 --> 00:06:31,120 Speaker 2: As you noted, Professor, he was very careful in saying 101 00:06:31,160 --> 00:06:35,960 Speaker 2: that the shifting risks may won't not necessarily, but may 102 00:06:36,520 --> 00:06:39,560 Speaker 2: warrant an adjustment. At the same time, the markets certainly 103 00:06:39,560 --> 00:06:42,400 Speaker 2: took it as almost a guarantee in September, there's going 104 00:06:42,440 --> 00:06:45,320 Speaker 2: to be a cut given where all the data are. 105 00:06:45,360 --> 00:06:47,560 Speaker 2: And what he had to say, what do you think 106 00:06:47,600 --> 00:06:49,160 Speaker 2: the FED should be doing. 107 00:06:50,960 --> 00:06:51,200 Speaker 3: Well? 108 00:06:51,240 --> 00:06:54,839 Speaker 4: I think he's bought the FED some room. What will 109 00:06:54,880 --> 00:07:00,400 Speaker 4: be critical. Are the August labor market numbers. They look 110 00:07:00,760 --> 00:07:04,680 Speaker 4: as weak as the July numbers looked. The Fed will 111 00:07:04,720 --> 00:07:09,560 Speaker 4: have a cost iron case for cutting. If, however, you 112 00:07:09,720 --> 00:07:15,920 Speaker 4: see again a shift back towards higher employment numbers, I 113 00:07:15,920 --> 00:07:20,240 Speaker 4: think the FED will really be conflicted at that point. 114 00:07:20,600 --> 00:07:23,000 Speaker 2: The part of Chairpal's speech that got the most attention, 115 00:07:23,040 --> 00:07:26,320 Speaker 2: certainly for the market, was the part about what's likely 116 00:07:26,320 --> 00:07:29,400 Speaker 2: to happen in September where we are on cutting. But 117 00:07:29,440 --> 00:07:31,400 Speaker 2: there was another half of the speech which had to 118 00:07:31,440 --> 00:07:34,480 Speaker 2: do with the so called framework, which the FED tends 119 00:07:34,480 --> 00:07:37,119 Speaker 2: to revisit every five years or so, and of course 120 00:07:37,320 --> 00:07:39,600 Speaker 2: last time was August of twenty twenty. It was a 121 00:07:39,720 --> 00:07:43,160 Speaker 2: very different world. As he noted in his speech. What 122 00:07:43,200 --> 00:07:45,480 Speaker 2: did you take about what he had to say about 123 00:07:45,520 --> 00:07:48,200 Speaker 2: how they're changing that framework, Well. 124 00:07:48,080 --> 00:07:53,120 Speaker 4: It was very interesting. He essentially said, we were tackling 125 00:07:53,440 --> 00:07:57,840 Speaker 4: a problem which no longer is that important, which was 126 00:07:57,880 --> 00:08:02,160 Speaker 4: the fact that the Fed had been tackling low inflation 127 00:08:02,280 --> 00:08:05,600 Speaker 4: for a long time. Inflation was lower than where the 128 00:08:05,640 --> 00:08:09,840 Speaker 4: FED wanted it to be, and the Fed essentially was 129 00:08:09,880 --> 00:08:13,040 Speaker 4: at what they call the effective lower bound. It couldn't 130 00:08:13,080 --> 00:08:18,120 Speaker 4: cut interest rates anymore, and in that kind of environment. Really, 131 00:08:18,160 --> 00:08:21,200 Speaker 4: the objective of the framework that the FED brought in 132 00:08:21,280 --> 00:08:26,080 Speaker 4: then was to push inflation up. And just a few 133 00:08:26,160 --> 00:08:30,000 Speaker 4: months after they brought that new framework in in twenty twenty, 134 00:08:30,560 --> 00:08:33,840 Speaker 4: the problem was exactly the opposite, which is high inflation, 135 00:08:34,400 --> 00:08:37,040 Speaker 4: and the FED now had to bring inflation down. 136 00:08:37,640 --> 00:08:39,839 Speaker 3: And essentially what Chair Paul. 137 00:08:39,679 --> 00:08:45,920 Speaker 4: Said was, look, you know, we had the right framework 138 00:08:45,960 --> 00:08:49,600 Speaker 4: for the wrong problem, and at this point what we're 139 00:08:49,600 --> 00:08:52,920 Speaker 4: trying to do is move back to our old framework. 140 00:08:53,360 --> 00:08:57,280 Speaker 2: And finally, Professor, this was his last speech by all 141 00:08:57,320 --> 00:09:01,120 Speaker 2: appearances at Jackson Hole. As he noted his eighth straight speech, 142 00:09:01,920 --> 00:09:04,920 Speaker 2: I will reflect on his legacy and particularly I really 143 00:09:05,000 --> 00:09:07,440 Speaker 2: remember it wasn't that long ago we were talking about 144 00:09:07,760 --> 00:09:10,199 Speaker 2: hard landing, soft landing, a lot of people saying we're 145 00:09:10,200 --> 00:09:12,800 Speaker 2: gonna have to have a recession. In retrospect, it looks 146 00:09:12,840 --> 00:09:15,160 Speaker 2: like the soft landing happened under his watch. 147 00:09:16,840 --> 00:09:22,120 Speaker 4: Well, yes, and I think unfortunately he will not get 148 00:09:22,320 --> 00:09:26,720 Speaker 4: as much credit as he should for navigating the FED 149 00:09:26,840 --> 00:09:31,959 Speaker 4: through very difficult times towards what seemed like a soft 150 00:09:32,040 --> 00:09:35,680 Speaker 4: landing at the beginning of this year. Of course, the 151 00:09:35,840 --> 00:09:43,960 Speaker 4: volatility from the new administration's policies has put that into 152 00:09:44,240 --> 00:09:49,840 Speaker 4: some question. But from the Fed's perspective, after the sort 153 00:09:49,840 --> 00:09:54,400 Speaker 4: of mistake that was made in the early days of 154 00:09:54,440 --> 00:09:57,600 Speaker 4: the pandemic in thinking the inflation then would be transitory, 155 00:09:58,400 --> 00:10:01,600 Speaker 4: the FED did a very credit job in getting things 156 00:10:01,800 --> 00:10:06,680 Speaker 4: back into line. So one he should get more credit 157 00:10:06,800 --> 00:10:11,120 Speaker 4: for that. The second I think is that he's displayed 158 00:10:11,480 --> 00:10:18,280 Speaker 4: immense calm and equanimity at a time when the FED 159 00:10:18,320 --> 00:10:23,840 Speaker 4: has been pummeled by outside forces. I think that's that's 160 00:10:23,880 --> 00:10:28,640 Speaker 4: also very creditable that he has led the FED from 161 00:10:28,679 --> 00:10:34,079 Speaker 4: the front, but also shown that, you know, despite all 162 00:10:34,120 --> 00:10:39,800 Speaker 4: the pressures from outside, he can focus and and offer 163 00:10:40,679 --> 00:10:43,400 Speaker 4: a reasonable view of what a central bank should do. 164 00:10:44,400 --> 00:10:47,360 Speaker 4: That may also, in the years to come be seen 165 00:10:47,640 --> 00:10:52,480 Speaker 4: as a very important legacy. He's led with honor, and 166 00:10:52,600 --> 00:10:58,000 Speaker 4: he's been very very careful, but also uh, you know, 167 00:10:58,520 --> 00:11:02,520 Speaker 4: reflected great in digrity while leading the FED. 168 00:11:04,160 --> 00:11:04,319 Speaker 5: Up. 169 00:11:04,360 --> 00:11:07,040 Speaker 2: Next, we take a closer look at the wealthiest county 170 00:11:07,080 --> 00:11:10,160 Speaker 2: and the wealthiest country in the world and how it 171 00:11:10,240 --> 00:11:18,280 Speaker 2: got there. This is a story about America the beautiful, 172 00:11:18,640 --> 00:11:21,600 Speaker 2: and how the beauty of one particular part of America 173 00:11:21,880 --> 00:11:25,080 Speaker 2: is way more than just skin deep. Once a year, 174 00:11:25,320 --> 00:11:28,840 Speaker 2: Jackson how Wyoming is a monetary policy mecca, but the 175 00:11:28,880 --> 00:11:32,000 Speaker 2: resort town in Teetan County is a symbol of the 176 00:11:32,040 --> 00:11:35,360 Speaker 2: way wealth transforms some parts of a town and how 177 00:11:35,400 --> 00:11:39,560 Speaker 2: other parts may never change. Michael McKee tells us why. 178 00:11:41,440 --> 00:11:44,480 Speaker 6: The wealthiest place in America today is a long way 179 00:11:44,520 --> 00:11:48,120 Speaker 6: from New York or San Francisco. It's much more famous 180 00:11:48,120 --> 00:11:53,800 Speaker 6: for its mountains, it's bison, and it's cowboys, than it 181 00:11:53,880 --> 00:11:57,199 Speaker 6: is for its billionaires. The residents would prefer to keep 182 00:11:57,240 --> 00:11:59,640 Speaker 6: it that way, but they would also tell you that 183 00:11:59,720 --> 00:12:01,880 Speaker 6: things are changing here fast. 184 00:12:03,320 --> 00:12:06,199 Speaker 7: Me personally, my home has doubled in value in the 185 00:12:06,280 --> 00:12:09,000 Speaker 7: last three years, so my balance sheet is looking good, 186 00:12:09,360 --> 00:12:12,640 Speaker 7: but my income certainly hasn't doubled in the last three years. 187 00:12:13,440 --> 00:12:16,040 Speaker 6: Jonathan Scheckter runs a think tank and sits on the 188 00:12:16,080 --> 00:12:19,520 Speaker 6: town council in Jackson, Wyoming, not far from the hotel 189 00:12:19,559 --> 00:12:22,120 Speaker 6: that hosts FED Chair J Powell and Central bankers from 190 00:12:22,120 --> 00:12:23,520 Speaker 6: around the world every summer. 191 00:12:24,679 --> 00:12:27,320 Speaker 7: If you go back and look at Jackson Hall, historically 192 00:12:27,679 --> 00:12:31,199 Speaker 7: we are a high, isolated mountain valley in the northwest 193 00:12:31,240 --> 00:12:34,560 Speaker 7: corner of Wyoming. It's been very hard to get here 194 00:12:34,720 --> 00:12:36,559 Speaker 7: and very hard to get out, or once you're here. 195 00:12:37,240 --> 00:12:41,440 Speaker 6: The result an economic transformation over two centuries, from trapping 196 00:12:41,520 --> 00:12:45,400 Speaker 6: to ranching to tourism, as the community's isolation and rugged 197 00:12:45,480 --> 00:12:50,160 Speaker 6: landscape eventually became a selling point for visitors. All right, 198 00:12:50,280 --> 00:12:51,360 Speaker 6: that's what I like to hear. 199 00:12:52,200 --> 00:12:54,600 Speaker 7: People would come to visit the national park. All of 200 00:12:54,679 --> 00:12:57,280 Speaker 7: Grand Teton National Park in the southern half of Yellowstone 201 00:12:57,320 --> 00:12:59,839 Speaker 7: are within our county. And then in the early nineteen 202 00:12:59,840 --> 00:13:03,160 Speaker 7: six the Jackson Hall Ski Area got started, and that 203 00:13:03,160 --> 00:13:06,240 Speaker 7: got started actually with a federal government loan that was 204 00:13:06,280 --> 00:13:09,840 Speaker 7: intended for the most impoverished areas in America because we 205 00:13:09,960 --> 00:13:14,920 Speaker 7: didn't have anything but a summer economy. The geographic isolation 206 00:13:15,120 --> 00:13:19,040 Speaker 7: still really affects who we are, our ecosystem, our community, 207 00:13:19,080 --> 00:13:21,199 Speaker 7: our sense of who we are, but it has much 208 00:13:21,280 --> 00:13:24,800 Speaker 7: less effect on our economy. So now we have people 209 00:13:24,840 --> 00:13:27,600 Speaker 7: from around the world who come and live here part 210 00:13:27,600 --> 00:13:32,520 Speaker 7: time full time. They work from anywhere, so we've really 211 00:13:32,520 --> 00:13:33,959 Speaker 7: become a hub of remote work. 212 00:13:34,640 --> 00:13:37,840 Speaker 6: For decades, it was New York County, which is primarily 213 00:13:37,880 --> 00:13:41,480 Speaker 6: the island of Manhattan, that led the country in wealth accumulation, 214 00:13:42,160 --> 00:13:45,200 Speaker 6: but in the early two thousands, Teeton County jumped into 215 00:13:45,200 --> 00:13:49,000 Speaker 6: the lead. That trend has rapidly accelerated in recent years, 216 00:13:49,280 --> 00:13:53,160 Speaker 6: and New York has tumbled into fourth place since the pandemic. Today, 217 00:13:53,200 --> 00:13:56,079 Speaker 6: the average per capita income in Teeton County is about 218 00:13:56,120 --> 00:13:58,320 Speaker 6: a half million dollars a year. 219 00:13:58,760 --> 00:14:01,320 Speaker 7: Where the wealthiest county, the wealthiest country in the history 220 00:14:01,360 --> 00:14:04,480 Speaker 7: of the world. We also sit at the heart of 221 00:14:04,520 --> 00:14:09,640 Speaker 7: the greatest intact ecosystem in the lower forty eight And 222 00:14:09,920 --> 00:14:13,120 Speaker 7: if you think about things through the eyes of sustainability, 223 00:14:13,240 --> 00:14:16,800 Speaker 7: where you have ecological capital, financial capital, and human capital, 224 00:14:17,280 --> 00:14:18,760 Speaker 7: I don't think there's any place in the world that 225 00:14:18,800 --> 00:14:19,720 Speaker 7: could compare to here. 226 00:14:20,520 --> 00:14:23,360 Speaker 6: Jonathan and others say it is no coincidence that a 227 00:14:23,520 --> 00:14:27,360 Speaker 6: singular ecosystem and a singular economy go hand in hand. 228 00:14:27,880 --> 00:14:30,800 Speaker 6: About ninety seven percent of the land in Teton County 229 00:14:31,000 --> 00:14:35,080 Speaker 6: is publicly owned, dedicated to parks and forests, and among 230 00:14:35,120 --> 00:14:37,760 Speaker 6: those who can afford to live anywhere on the planet, 231 00:14:38,080 --> 00:14:40,560 Speaker 6: there seems to be a belief that something is special 232 00:14:40,680 --> 00:14:44,160 Speaker 6: about this territory. But then again, there are plenty of 233 00:14:44,200 --> 00:14:48,000 Speaker 6: other spectacular places in America, so natural beauty is just 234 00:14:48,200 --> 00:14:52,760 Speaker 6: one piece of the puzzle here. Another is the tax system. 235 00:14:53,360 --> 00:14:58,960 Speaker 7: Phrases we are an onshore, offshore tax haven, and so 236 00:14:59,200 --> 00:15:03,640 Speaker 7: we are hands down the most wealth friendly and income 237 00:15:03,680 --> 00:15:08,320 Speaker 7: friendly and wealth preservation friendly state in the Union. No 238 00:15:08,760 --> 00:15:09,880 Speaker 7: other state comes close. 239 00:15:10,560 --> 00:15:14,440 Speaker 6: Low property tax, low sales tax, and zero income tax 240 00:15:14,480 --> 00:15:18,760 Speaker 6: in Wyoming are strong incentives. But then again, every other 241 00:15:18,800 --> 00:15:21,880 Speaker 6: county in the state benefits from the same friendly tax regime, 242 00:15:22,280 --> 00:15:25,600 Speaker 6: and their annual incomes are much closer to the national average. 243 00:15:26,000 --> 00:15:31,200 Speaker 6: Titan County leaves the others in the dust. So what's 244 00:15:31,240 --> 00:15:34,920 Speaker 6: the secret ingredient? If it's not just the land or 245 00:15:35,000 --> 00:15:38,600 Speaker 6: the taxes, maybe it's something else altogether. When in doubt, 246 00:15:39,160 --> 00:15:40,000 Speaker 6: ask the locals. 247 00:15:40,840 --> 00:15:44,160 Speaker 5: It was a small town. Everybody knew everybody here in 248 00:15:44,200 --> 00:15:48,200 Speaker 5: this town. At one time it was extremely Western. 249 00:15:48,720 --> 00:15:52,200 Speaker 6: Philip Wilson is the great grandson of Sylvester Wilson, who 250 00:15:52,320 --> 00:15:54,400 Speaker 6: was the first settler to bring his family to the 251 00:15:54,480 --> 00:15:57,800 Speaker 6: valley in the late eighteen hundreds. The town, five miles 252 00:15:57,840 --> 00:16:02,000 Speaker 6: west of Jackson, still bears his surname. Today, Philip and 253 00:16:02,080 --> 00:16:05,280 Speaker 6: his family run the Jackson Hole Rodeo, and he says 254 00:16:05,400 --> 00:16:08,480 Speaker 6: a lot has changed here even within his lifetime. 255 00:16:09,320 --> 00:16:13,360 Speaker 5: When I was younger, basically everybody had cattle ranchers, few 256 00:16:13,440 --> 00:16:16,160 Speaker 5: dude ranchers around, but not a lot of them, and 257 00:16:16,200 --> 00:16:19,880 Speaker 5: then the hotel started coming in and torror started coming in. 258 00:16:20,440 --> 00:16:24,280 Speaker 5: Everybody that comes to Jackson Hole immediately falls in love 259 00:16:24,320 --> 00:16:27,200 Speaker 5: with it, wants a piece of it. We want to 260 00:16:27,200 --> 00:16:30,200 Speaker 5: have them feel part of Jackson Hole when you're here. 261 00:16:30,400 --> 00:16:33,440 Speaker 5: We want them to feel that the atmosphere. That's why 262 00:16:33,560 --> 00:16:37,080 Speaker 5: adhere to Rodeo. I even go out in the parking 263 00:16:37,120 --> 00:16:39,960 Speaker 5: and welcome people that come in. I turn around and 264 00:16:39,960 --> 00:16:41,240 Speaker 5: shake their hand when they leave. 265 00:16:42,080 --> 00:16:44,840 Speaker 6: For Philip Wilson, his family and so many of the 266 00:16:44,880 --> 00:16:48,440 Speaker 6: other residents, the cowboy culture is not just for show. 267 00:16:48,920 --> 00:16:51,480 Speaker 6: They were born into it. But he also says it's 268 00:16:51,520 --> 00:16:55,200 Speaker 6: no wonder that culture appeals to outsiders and newcomers. 269 00:16:55,880 --> 00:16:59,000 Speaker 5: That's what draws people to Jackson Hole. The people that 270 00:16:59,080 --> 00:17:03,680 Speaker 5: are here are friendly type people. They're outgoing, near friendly. 271 00:17:03,800 --> 00:17:05,760 Speaker 5: That's the only way they know how to be because 272 00:17:05,760 --> 00:17:07,760 Speaker 5: that's the way they run their lives. 273 00:17:08,040 --> 00:17:10,200 Speaker 8: It's a very very popular. I think it's made into 274 00:17:10,200 --> 00:17:12,080 Speaker 8: a lot of the must visit when you come to 275 00:17:12,200 --> 00:17:13,800 Speaker 8: Jackson Hole type of places. 276 00:17:14,200 --> 00:17:16,800 Speaker 6: Among those drawn here by the land and the culture 277 00:17:17,080 --> 00:17:20,480 Speaker 6: is Kate Moore. Low taxes aren't a motivation for her. 278 00:17:20,720 --> 00:17:23,320 Speaker 6: She still files in New York, where her work is 279 00:17:23,400 --> 00:17:27,480 Speaker 6: based as chief Investment Officer for City Private Bank. She's 280 00:17:27,560 --> 00:17:29,840 Speaker 6: joined a growing group of people making the move from 281 00:17:29,920 --> 00:17:31,560 Speaker 6: Wall Street to the West. 282 00:17:32,760 --> 00:17:34,800 Speaker 8: I bought my house a little over seven years ago, 283 00:17:34,880 --> 00:17:38,560 Speaker 8: so pre COVID, which was excellent timing given real estate prices. 284 00:17:38,920 --> 00:17:40,800 Speaker 8: But I've been coming out here for thirty years. My 285 00:17:40,840 --> 00:17:42,320 Speaker 8: first trip was when I was in high school. 286 00:17:42,359 --> 00:17:45,560 Speaker 6: Actually, now your job is essentially on Park Avenue, but 287 00:17:45,640 --> 00:17:47,199 Speaker 6: you're splitting your time here. 288 00:17:47,320 --> 00:17:49,400 Speaker 8: Yeah, I split my time, and I split my time 289 00:17:49,400 --> 00:17:51,840 Speaker 8: in my previous role as well. But I think you know, 290 00:17:51,920 --> 00:17:54,840 Speaker 8: I'm someone who manages a global team. We're not all 291 00:17:54,880 --> 00:17:58,720 Speaker 8: in the same location at all times anyway, and you know, 292 00:17:58,800 --> 00:18:00,920 Speaker 8: if I'm working the appropriate hours in this case East 293 00:18:00,960 --> 00:18:03,119 Speaker 8: Coast market hours, I'm up at four, which is can 294 00:18:03,200 --> 00:18:04,600 Speaker 8: be a little bit tough. I think a lot of 295 00:18:04,600 --> 00:18:07,000 Speaker 8: the finance people in town do the same thing. 296 00:18:07,400 --> 00:18:10,240 Speaker 6: More says there's also a deep appreciation for the region's 297 00:18:10,280 --> 00:18:13,480 Speaker 6: history here. She herself lives in a renovated cabin that 298 00:18:13,640 --> 00:18:15,200 Speaker 6: was built in nineteen twenty nine. 299 00:18:15,760 --> 00:18:16,400 Speaker 3: But whether the. 300 00:18:16,359 --> 00:18:19,280 Speaker 6: Homes are new or old, one look at real estate 301 00:18:19,320 --> 00:18:22,240 Speaker 6: prices will give you an idea of just how high 302 00:18:22,280 --> 00:18:24,640 Speaker 6: the peaks of wealth in Teton County can go. 303 00:18:25,800 --> 00:18:29,439 Speaker 9: Our supply is limited here, but demand seems to go 304 00:18:29,520 --> 00:18:30,320 Speaker 9: up every year. 305 00:18:31,320 --> 00:18:34,080 Speaker 6: Brandon Spackman is a local real estate agent and he 306 00:18:34,119 --> 00:18:37,240 Speaker 6: currently has the listing for the most expensive property in 307 00:18:37,320 --> 00:18:40,000 Speaker 6: the area. That's where we met up with him for 308 00:18:40,080 --> 00:18:44,000 Speaker 6: a tour. It seems like you have almost an unlimited 309 00:18:44,040 --> 00:18:45,560 Speaker 6: supply of buyers. 310 00:18:47,000 --> 00:18:47,280 Speaker 8: We do. 311 00:18:47,680 --> 00:18:50,000 Speaker 9: It's a big investment, and a lot of it is 312 00:18:50,080 --> 00:18:53,080 Speaker 9: just per timing in their lives and what they want 313 00:18:53,119 --> 00:18:53,320 Speaker 9: to do. 314 00:18:54,200 --> 00:18:57,400 Speaker 6: When he says big investment, he means it. The river 315 00:18:57,480 --> 00:19:01,240 Speaker 6: House sits on a thirty six acre property in Wilson, Wyoming, 316 00:19:01,400 --> 00:19:05,280 Speaker 6: the town founded by Philip Wilson's great grandfather. It's about 317 00:19:05,320 --> 00:19:09,440 Speaker 6: ten miles from downtown Jackson and is currently listed at 318 00:19:09,560 --> 00:19:13,919 Speaker 6: sixty million dollars. Obviously, you have a room like this, 319 00:19:14,040 --> 00:19:16,520 Speaker 6: You walk into the room and it helps sell the house. 320 00:19:16,520 --> 00:19:18,919 Speaker 6: You want to live in a place like this. Now, 321 00:19:19,000 --> 00:19:21,840 Speaker 6: how many houses are in this price. 322 00:19:21,720 --> 00:19:24,879 Speaker 9: Range over twenty million. A lot of properties are in 323 00:19:24,920 --> 00:19:27,000 Speaker 9: the twentieth thirty range. 324 00:19:27,080 --> 00:19:29,639 Speaker 6: Properties like river House form the higher end of the 325 00:19:29,720 --> 00:19:32,080 Speaker 6: range in a place where private land is hard to 326 00:19:32,080 --> 00:19:35,360 Speaker 6: come by. But as the ultra premium market goes up, 327 00:19:35,680 --> 00:19:38,320 Speaker 6: so does the rest of it. Some people here say 328 00:19:38,320 --> 00:19:41,880 Speaker 6: that billionaires are pushing out the millionaires, not to mention 329 00:19:42,040 --> 00:19:45,640 Speaker 6: those in lower income brackets who sometimes commute from across 330 00:19:45,680 --> 00:19:49,520 Speaker 6: the border in Idaho. And Jonathan Scheckter thinks the wealth 331 00:19:49,600 --> 00:19:53,719 Speaker 6: divide could become a bigger problem under the latest federal legislation. 332 00:19:54,640 --> 00:19:57,399 Speaker 6: You're number one in per capita income, but also number 333 00:19:57,400 --> 00:19:59,760 Speaker 6: one in income disparity. 334 00:20:00,600 --> 00:20:03,879 Speaker 7: Yes, we have roughly ninety percent of our income. A 335 00:20:03,920 --> 00:20:06,800 Speaker 7: little north of that is earned by the highest earners. 336 00:20:07,000 --> 00:20:11,440 Speaker 7: So maybe fifteen percent of our community earns roughly ninety 337 00:20:11,480 --> 00:20:15,679 Speaker 7: percent of our income, leaving about ten percent of our 338 00:20:15,680 --> 00:20:18,720 Speaker 7: income for the other eighty five percent. The Big Beautiful 339 00:20:18,720 --> 00:20:23,719 Speaker 7: bill disproportionally benefits the wealthy. A lot of these cuts 340 00:20:23,760 --> 00:20:26,280 Speaker 7: that are going to occur, a lot of cuts in 341 00:20:26,320 --> 00:20:30,800 Speaker 7: social services programs and other programs are going to disproportionately 342 00:20:31,080 --> 00:20:34,600 Speaker 7: harm those of lower income. And when you have the 343 00:20:34,640 --> 00:20:38,359 Speaker 7: greatest income inequality, the greatest income disparity of any county 344 00:20:38,400 --> 00:20:42,439 Speaker 7: in America, then I'm concerned about my constituents, my friends, 345 00:20:42,440 --> 00:20:43,600 Speaker 7: my colleagues, my neighbors. 346 00:20:44,200 --> 00:20:47,080 Speaker 6: Philip plus On's Rodeo employees, locals, and the lack of 347 00:20:47,119 --> 00:20:50,480 Speaker 6: affordable housing means he has to run a leaner business. 348 00:20:50,920 --> 00:20:54,239 Speaker 5: We'd like to have eighty employees here. We're not up 349 00:20:54,280 --> 00:20:56,560 Speaker 5: to where we need to be, but we may do. 350 00:20:57,840 --> 00:21:01,680 Speaker 5: There's not enough people here in the valley that live 351 00:21:01,760 --> 00:21:05,040 Speaker 5: here to work here because most of them live outside here. 352 00:21:05,200 --> 00:21:07,359 Speaker 5: So when you come to the rodeo we're at evening, 353 00:21:07,920 --> 00:21:10,159 Speaker 5: you know, they're either one hundred miles away or sixty 354 00:21:10,200 --> 00:21:12,359 Speaker 5: miles away down in Star Valley. 355 00:21:12,560 --> 00:21:16,080 Speaker 6: Despite the challenges facing Jackson Hole, it's workers and its 356 00:21:16,119 --> 00:21:19,840 Speaker 6: residents say the sense of community remains strong here and 357 00:21:19,880 --> 00:21:23,119 Speaker 6: that's what Philip Wilson hopes to preserve, bringing the ultra 358 00:21:23,160 --> 00:21:24,720 Speaker 6: wealthy along for the ride. 359 00:21:25,480 --> 00:21:27,680 Speaker 5: If you're going to come to the rodeo, we want 360 00:21:27,720 --> 00:21:29,800 Speaker 5: you to have a good time, because we're going to 361 00:21:29,880 --> 00:21:31,800 Speaker 5: have a good time. So when you come here, we 362 00:21:31,880 --> 00:21:35,320 Speaker 5: try to show them the friendly type of atmosphere. That's 363 00:21:35,320 --> 00:21:37,800 Speaker 5: why we do so much handshaking here at this rodeo. 364 00:21:37,880 --> 00:21:40,480 Speaker 6: And there's a cowboy western culture in. 365 00:21:40,480 --> 00:21:43,520 Speaker 5: What there is there is here. You know, the cowboy 366 00:21:43,560 --> 00:21:46,720 Speaker 5: culture is I'll tell you one thing that a cowboy 367 00:21:46,760 --> 00:21:49,920 Speaker 5: does is every time he sees you, he shakes your hand. 368 00:21:50,280 --> 00:21:52,560 Speaker 5: If he sees you tomorrow, he shakes your hand. If 369 00:21:52,600 --> 00:21:54,800 Speaker 5: he sees you tomorrow afternoon, he shakes your hand. 370 00:21:55,760 --> 00:21:58,280 Speaker 8: I mean, it is the most amazing community ever. I 371 00:21:58,320 --> 00:22:01,919 Speaker 8: can tell you. I have incredibly close friends that are 372 00:22:02,000 --> 00:22:06,159 Speaker 8: fishing guides and that are self made billionaires. And frankly, 373 00:22:06,160 --> 00:22:07,600 Speaker 8: some of those people I didn't even know they were 374 00:22:07,640 --> 00:22:10,359 Speaker 8: really wealthy, because everyone drives the same like f one 375 00:22:10,359 --> 00:22:13,240 Speaker 8: point fifty and wears the same kind of jeans around town. 376 00:22:13,520 --> 00:22:16,159 Speaker 8: It is a place where there is an enormous amount 377 00:22:16,160 --> 00:22:19,399 Speaker 8: of wealth, but showing that wealth is not part of 378 00:22:19,440 --> 00:22:20,200 Speaker 8: normal behavior. 379 00:22:20,960 --> 00:22:24,560 Speaker 6: Jonathan Scheckter says he helps the community spirit and respect 380 00:22:24,560 --> 00:22:27,040 Speaker 6: for the land will be constant even in the face 381 00:22:27,040 --> 00:22:30,199 Speaker 6: of economic change, but he also says they need to 382 00:22:30,200 --> 00:22:33,200 Speaker 6: be protected and are no longer as certain as they 383 00:22:33,240 --> 00:22:33,760 Speaker 6: once were. 384 00:22:34,720 --> 00:22:37,479 Speaker 7: You just needed to have that hot luck kind of 385 00:22:38,000 --> 00:22:41,760 Speaker 7: church social mentality because there were too few of us 386 00:22:41,840 --> 00:22:43,399 Speaker 7: and we had to rely on each other in a 387 00:22:43,520 --> 00:22:46,440 Speaker 7: very harsh and extreme place. And so we can't take 388 00:22:46,440 --> 00:22:48,240 Speaker 7: a lot of these things for granted. We can't take 389 00:22:48,280 --> 00:22:51,800 Speaker 7: for granted transmitting our cultural values from one generation to another, 390 00:22:52,160 --> 00:22:56,080 Speaker 7: we can't take for granted transmitting a healthy ecosystem from 391 00:22:56,080 --> 00:22:58,800 Speaker 7: one generation to another. If we lose that, then we've 392 00:22:58,800 --> 00:23:00,720 Speaker 7: lost something really special, right. 393 00:23:00,640 --> 00:23:02,840 Speaker 6: Not really well, we got to get start a good camp. 394 00:23:03,240 --> 00:23:05,840 Speaker 6: These worries seem far away. On a Friday night at 395 00:23:05,840 --> 00:23:08,879 Speaker 6: the Rodeo, a view from the stands shows that although 396 00:23:08,960 --> 00:23:13,240 Speaker 6: much has changed here, much abides. The story of Jackson 397 00:23:13,240 --> 00:23:16,439 Speaker 6: Hole is one of American ideals. The wealthy and the 398 00:23:16,560 --> 00:23:19,560 Speaker 6: ultra wealthy of today may see what the Wilsons saw 399 00:23:19,680 --> 00:23:22,960 Speaker 6: when they arrived in Teton County over one hundred years ago, 400 00:23:23,119 --> 00:23:25,920 Speaker 6: an American frontier that can share the bounty of the 401 00:23:26,000 --> 00:23:29,760 Speaker 6: land with its people. But more than ever before, those 402 00:23:29,760 --> 00:23:32,359 Speaker 6: who live here will have to reconcile the values of 403 00:23:32,400 --> 00:23:36,760 Speaker 6: capitalism with the culture born of cowboys and unforgiving landscapes, 404 00:23:37,200 --> 00:23:40,000 Speaker 6: a culture which may be their greatest asset of all. 405 00:23:43,560 --> 00:23:47,240 Speaker 2: Coming up fresh off his transformative acquisition of Hess, we 406 00:23:47,320 --> 00:23:50,560 Speaker 2: talk with Chevron CEO Mike Worth about what it means 407 00:23:50,560 --> 00:23:58,760 Speaker 2: for his company and what it tells us about his industry. Overall, 408 00:23:59,000 --> 00:24:02,880 Speaker 2: this is a story about growth and renewal. Not long ago, 409 00:24:03,080 --> 00:24:06,240 Speaker 2: all the talk was about the looming end of fossil fuels, 410 00:24:06,520 --> 00:24:09,520 Speaker 2: But now it looks like much of that talk was premature. 411 00:24:10,040 --> 00:24:12,800 Speaker 2: One of those who was steering his global energy company 412 00:24:12,840 --> 00:24:15,920 Speaker 2: through the ups and the downs is Mike Worth, chairman 413 00:24:15,920 --> 00:24:18,920 Speaker 2: and CEO of Chevron, who says that what the industry 414 00:24:19,000 --> 00:24:21,120 Speaker 2: needed all along was balance. 415 00:24:22,359 --> 00:24:25,080 Speaker 10: Whenever you talk about energy, there are really three things 416 00:24:25,080 --> 00:24:27,399 Speaker 10: that matter, and this is whether you're a company or 417 00:24:27,440 --> 00:24:33,360 Speaker 10: a country. Affordability, because energy that people can't afford usn't 418 00:24:33,440 --> 00:24:38,440 Speaker 10: change lives. Reliability, reliability and build an economy to be built, 419 00:24:38,840 --> 00:24:43,119 Speaker 10: and then protecting the environment. And in policy discussions or 420 00:24:43,160 --> 00:24:46,440 Speaker 10: in business strategy. And if we focus only on one 421 00:24:46,480 --> 00:24:49,000 Speaker 10: of those, we suboptimize on the other two. Well, I 422 00:24:49,000 --> 00:24:53,159 Speaker 10: think there was a genuine hope to transition to a 423 00:24:53,200 --> 00:24:58,040 Speaker 10: carbon free economy very rapidly, and I think what that 424 00:24:58,119 --> 00:25:01,920 Speaker 10: led people to miss was the reasons why the energy 425 00:25:01,960 --> 00:25:03,960 Speaker 10: system we have today is in place. 426 00:25:04,760 --> 00:25:06,960 Speaker 2: Whenever you have balanced, there are some trade offs. How 427 00:25:06,960 --> 00:25:09,880 Speaker 2: do you minimize the damage to the climate while pursuing 428 00:25:09,920 --> 00:25:10,639 Speaker 2: the other goals. 429 00:25:11,280 --> 00:25:13,880 Speaker 10: The first thing you do is you focus on efficiency. 430 00:25:14,560 --> 00:25:17,480 Speaker 10: The best way to find new energy is not to 431 00:25:17,600 --> 00:25:21,240 Speaker 10: use energy wastefully than we have today, and so efficiency 432 00:25:21,440 --> 00:25:27,520 Speaker 10: in industrial facilities, in transportation, in manufacturing, all really really essential. 433 00:25:27,920 --> 00:25:31,679 Speaker 10: The second thing that we're focused on is investing in 434 00:25:31,720 --> 00:25:34,760 Speaker 10: technology so that we think hold the promise to reduce 435 00:25:34,800 --> 00:25:38,640 Speaker 10: the carbon intensity of energy use in the future. So 436 00:25:39,240 --> 00:25:42,959 Speaker 10: hydrogen is one example, renewable fuels is a second, geothermal 437 00:25:43,440 --> 00:25:45,800 Speaker 10: is a third. Earlier this year we started up our 438 00:25:45,920 --> 00:25:49,280 Speaker 10: largest renewable diesel facility. We're the second largest producer renewable 439 00:25:49,280 --> 00:25:52,600 Speaker 10: fuels in the United States. Later this year we will 440 00:25:52,600 --> 00:25:56,520 Speaker 10: start up the largest green hydrogen facility in the United States, 441 00:25:56,600 --> 00:26:01,080 Speaker 10: using solar power to turn water into hydrogen, and that 442 00:26:01,119 --> 00:26:03,800 Speaker 10: will have the storage capacity equivalent to three times all 443 00:26:03,800 --> 00:26:06,479 Speaker 10: the grid installed batteries in the entire United States. 444 00:26:07,200 --> 00:26:09,560 Speaker 2: As we talk right now, it looks like the demand 445 00:26:09,760 --> 00:26:12,120 Speaker 2: for fossil fuels will continue as far as the eye 446 00:26:12,119 --> 00:26:14,200 Speaker 2: can see. Do you think it peaks at some point? 447 00:26:14,359 --> 00:26:16,600 Speaker 10: Demand last year is the highest that it's ever been. 448 00:26:16,880 --> 00:26:19,720 Speaker 10: Demand this year is up versus last year. Demand next 449 00:26:19,760 --> 00:26:23,000 Speaker 10: year will be up again again, not because of anything 450 00:26:23,000 --> 00:26:25,240 Speaker 10: our industry is doing, but the population on the planet 451 00:26:25,320 --> 00:26:29,000 Speaker 10: continues to grow. There will come a time when the 452 00:26:29,040 --> 00:26:33,639 Speaker 10: population on the planet plateaus, when development will have largely 453 00:26:33,720 --> 00:26:36,639 Speaker 10: occurred for most of the less developed part of the world. 454 00:26:37,040 --> 00:26:40,320 Speaker 10: And efficiency will have offset some of that growth. Different 455 00:26:40,480 --> 00:26:43,359 Speaker 10: models give you different assumptions on when that will occur, 456 00:26:44,200 --> 00:26:46,480 Speaker 10: but the important thing is once we reach that point, 457 00:26:46,600 --> 00:26:49,480 Speaker 10: it's not like demand for oil will then drop off 458 00:26:49,480 --> 00:26:54,640 Speaker 10: a cliff. The big consumers of oil are airplanes, ships, 459 00:26:55,520 --> 00:26:58,920 Speaker 10: long haul trucking, and so even as we find these 460 00:26:58,960 --> 00:27:02,960 Speaker 10: new technologies more competitive, we're going to have existing consumers 461 00:27:02,960 --> 00:27:04,920 Speaker 10: of energy that will last for a long time to come. 462 00:27:05,280 --> 00:27:06,760 Speaker 10: This is going to be measured in decades. 463 00:27:07,440 --> 00:27:10,760 Speaker 2: The global demand for oil something over one hundred million 464 00:27:10,800 --> 00:27:13,720 Speaker 2: barrels a day. How long do you think that can sustain. 465 00:27:14,720 --> 00:27:16,800 Speaker 10: Well, we're closer to one hundred and five million barrels 466 00:27:16,840 --> 00:27:20,080 Speaker 10: a day today. We'll probably be close to one hundred 467 00:27:20,080 --> 00:27:21,760 Speaker 10: and ten million barrels a day by the end of 468 00:27:21,840 --> 00:27:25,359 Speaker 10: this decade, and then some forecasts would have it beginning 469 00:27:25,400 --> 00:27:28,320 Speaker 10: to plateau, some would have it continuing to grow. OPEK 470 00:27:28,520 --> 00:27:31,879 Speaker 10: has a growth out through twenty fifty. The IEA shows 471 00:27:31,880 --> 00:27:35,040 Speaker 10: a plateau beginning in twenty thirty. Our view is probably 472 00:27:35,040 --> 00:27:38,000 Speaker 10: somewhere in between those two, but that's still an enormous 473 00:27:38,000 --> 00:27:40,040 Speaker 10: amount of demand in the world to be met. 474 00:27:40,440 --> 00:27:44,040 Speaker 2: Chevron specifically has positioned itself recently to be in a 475 00:27:44,080 --> 00:27:46,639 Speaker 2: position to supply some of that with your Hess acquisition. 476 00:27:47,000 --> 00:27:50,080 Speaker 2: Explain why that's strategically was so important to Chevron and 477 00:27:50,119 --> 00:27:50,400 Speaker 2: to you. 478 00:27:51,200 --> 00:27:53,960 Speaker 10: Well, we've got a strong growth profile through the rest 479 00:27:54,000 --> 00:27:56,920 Speaker 10: of this decade. The Permian Basin just hit a million 480 00:27:56,920 --> 00:28:00,640 Speaker 10: barrels a day, We've had global records the last couple 481 00:28:00,640 --> 00:28:03,480 Speaker 10: of quarters for production. Has brings with it a nice 482 00:28:03,520 --> 00:28:07,920 Speaker 10: growth profile that extends beyond the next few years as 483 00:28:08,000 --> 00:28:10,919 Speaker 10: we reach maturity on some of our big projects that 484 00:28:10,960 --> 00:28:14,040 Speaker 10: have been starting up. Has had some very talented people 485 00:28:14,160 --> 00:28:18,159 Speaker 10: in exploration who've been quite involved in the identification and 486 00:28:18,400 --> 00:28:21,360 Speaker 10: appraisal of the resource in Guyana, which is the largest 487 00:28:21,760 --> 00:28:24,200 Speaker 10: new discovery in the world over the last couple of decades. 488 00:28:24,480 --> 00:28:27,480 Speaker 10: So we're going to bring their talent, their experience, their 489 00:28:28,240 --> 00:28:32,600 Speaker 10: insights and blend it with ours. And as we move forward, 490 00:28:32,600 --> 00:28:35,919 Speaker 10: we've got acreage around the world and we're going to 491 00:28:35,960 --> 00:28:40,880 Speaker 10: have some a stronger team as we move forward to 492 00:28:41,080 --> 00:28:43,960 Speaker 10: challenge some of our conventional thinking, maybe help us think 493 00:28:43,960 --> 00:28:47,640 Speaker 10: about these opportunities differently, and I'm confident we'll get better results. 494 00:28:47,760 --> 00:28:50,680 Speaker 2: Can you get along with Exxon as a venture partner 495 00:28:50,720 --> 00:28:51,760 Speaker 2: down a Guyana. 496 00:28:51,600 --> 00:28:56,120 Speaker 10: We partner to share risk, to share costs. It's quite common, 497 00:28:56,160 --> 00:28:59,880 Speaker 10: particularly on large scale developments. We put our people together, 498 00:29:00,080 --> 00:29:02,640 Speaker 10: get the best out of the people from organizations that 499 00:29:03,000 --> 00:29:06,600 Speaker 10: bring different experiences together, and we got great respect for 500 00:29:06,720 --> 00:29:09,320 Speaker 10: all the companies that we work with. I would fully 501 00:29:09,320 --> 00:29:13,000 Speaker 10: expect that our team will be good partners with Excellon 502 00:29:13,080 --> 00:29:15,720 Speaker 10: and vice versa in Guyana. Many of the people that 503 00:29:15,760 --> 00:29:17,880 Speaker 10: we'll be working on this project are the he s 504 00:29:17,960 --> 00:29:19,480 Speaker 10: people who have now joined Chevron. 505 00:29:20,080 --> 00:29:21,880 Speaker 2: Chevron is much more than an oil Company's a gas 506 00:29:21,880 --> 00:29:24,840 Speaker 2: company too, let's talk about natural gas. There was a 507 00:29:24,880 --> 00:29:27,000 Speaker 2: time that was such a sort of a bridge energy 508 00:29:27,320 --> 00:29:30,280 Speaker 2: getting to solar and renewables. Is that still true? 509 00:29:31,200 --> 00:29:33,840 Speaker 10: I actually think it's becoming more true once again, or 510 00:29:33,880 --> 00:29:38,800 Speaker 10: more recognized. As you bring wind and solar into an 511 00:29:38,840 --> 00:29:43,800 Speaker 10: electricity grid. They have great strengths once the capital has 512 00:29:43,800 --> 00:29:47,440 Speaker 10: been invested. The marginal cost is very low. But they're 513 00:29:47,440 --> 00:29:50,840 Speaker 10: not good at providing baseload capacity because they're variable with 514 00:29:50,920 --> 00:29:53,520 Speaker 10: the wind and the sunshine. You can't really turn the 515 00:29:53,560 --> 00:29:55,920 Speaker 10: sun up brighter or make the wind blow. It is 516 00:29:56,000 --> 00:29:58,640 Speaker 10: what it is, and so you need other sources of 517 00:29:58,680 --> 00:30:02,480 Speaker 10: supply to provide loading for the grid. Natural gas is 518 00:30:02,560 --> 00:30:05,520 Speaker 10: ideal for that. It's much lower emitting than coal. 519 00:30:05,680 --> 00:30:07,960 Speaker 2: Give us a sense of how you think Chevron can 520 00:30:08,000 --> 00:30:10,880 Speaker 2: help really contribute the power that we need for those 521 00:30:10,960 --> 00:30:11,880 Speaker 2: huge data centers. 522 00:30:12,240 --> 00:30:15,720 Speaker 10: The demand is coming, in fact, it's already here, and 523 00:30:15,840 --> 00:30:19,719 Speaker 10: we're talking to the biggest companies in the world that 524 00:30:19,760 --> 00:30:24,200 Speaker 10: are investing in building these models. The two constraints that 525 00:30:24,200 --> 00:30:27,280 Speaker 10: they have right now are chips the gp use that 526 00:30:27,360 --> 00:30:31,200 Speaker 10: go into the data centers, and electricity. The US is 527 00:30:31,200 --> 00:30:35,840 Speaker 10: in a race with China for leadership in AI, and 528 00:30:36,000 --> 00:30:42,000 Speaker 10: both countries have strong technology bases and strong energy resources. 529 00:30:42,960 --> 00:30:45,440 Speaker 10: The challenge for us in the US is to mobilize 530 00:30:45,480 --> 00:30:49,640 Speaker 10: our energy to support the growth in power demand. We've 531 00:30:49,640 --> 00:30:51,960 Speaker 10: got a grid that is challenged in terms of putting 532 00:30:51,960 --> 00:30:54,720 Speaker 10: all that power through the grid. So what we're looking 533 00:30:54,760 --> 00:30:57,920 Speaker 10: at doing is building a large scale power generation off 534 00:30:57,960 --> 00:31:00,480 Speaker 10: the grid where we can go fast, we can deliver 535 00:31:00,640 --> 00:31:03,880 Speaker 10: large scale, we can take advantage of the abundant, low 536 00:31:03,960 --> 00:31:06,480 Speaker 10: cost gas resource in this country. So we're in deep 537 00:31:06,520 --> 00:31:09,080 Speaker 10: discussions with several of the biggest companies working on this. 538 00:31:09,200 --> 00:31:12,160 Speaker 2: We have announced already a deal with Vernova and with 539 00:31:12,280 --> 00:31:14,640 Speaker 2: Engine Number one. Where is that project? When will it 540 00:31:14,680 --> 00:31:16,720 Speaker 2: first be online somewhere. 541 00:31:16,480 --> 00:31:18,440 Speaker 10: So this is what I'm referring to. We've got a 542 00:31:18,480 --> 00:31:22,160 Speaker 10: site identified a primary site. We've got some other sites 543 00:31:22,160 --> 00:31:24,400 Speaker 10: that we're working on as well. We've got seven of 544 00:31:24,520 --> 00:31:28,160 Speaker 10: g Vernova's largest turbans coming with delivery beginning next year, 545 00:31:28,520 --> 00:31:31,800 Speaker 10: so it's to be over four gigawatts of power generation. 546 00:31:32,040 --> 00:31:34,600 Speaker 2: When you talk about permitting, I do think about governments 547 00:31:35,160 --> 00:31:37,880 Speaker 2: federal certainly with the administrations to say, but also state. 548 00:31:38,720 --> 00:31:40,240 Speaker 2: When you talk about balance, how do you strike a 549 00:31:40,280 --> 00:31:43,120 Speaker 2: balance between noy pick names. Gavin Newsom on the one 550 00:31:43,160 --> 00:31:46,600 Speaker 2: hand in California and Donald Trump in Washington. They don't 551 00:31:46,600 --> 00:31:48,840 Speaker 2: seem to see eye to eye and energy policy. 552 00:31:49,440 --> 00:31:50,960 Speaker 10: They probably don't see eye to eye on a number 553 00:31:51,000 --> 00:31:55,080 Speaker 10: of things, energy policy being one of them. And certainly 554 00:31:55,120 --> 00:31:58,400 Speaker 10: we've got long history in California, a large footprint in California. 555 00:31:58,920 --> 00:32:01,400 Speaker 10: But the policies are the state have been designed to 556 00:32:01,480 --> 00:32:05,760 Speaker 10: discourage investment in the traditional energy system and encourage investment 557 00:32:05,920 --> 00:32:10,760 Speaker 10: into renewables and the next generation. We talked earlier about balance. 558 00:32:11,280 --> 00:32:13,720 Speaker 10: My belief is California does not have the balance right. 559 00:32:14,120 --> 00:32:17,520 Speaker 10: California is trying to convert the supply side too fast 560 00:32:17,920 --> 00:32:20,400 Speaker 10: and the demand side hasn't adjusted yet, and that runs 561 00:32:20,440 --> 00:32:23,920 Speaker 10: the risk of creating shortages. I think President Trump is 562 00:32:24,000 --> 00:32:27,520 Speaker 10: more of a believer in all of the above, certainly 563 00:32:27,560 --> 00:32:30,840 Speaker 10: been an advocate for oil and gas, and I think 564 00:32:30,880 --> 00:32:35,640 Speaker 10: his policy approach is more market oriented and likely to 565 00:32:35,720 --> 00:32:38,760 Speaker 10: yield the kinds of results that we're talking about in 566 00:32:38,800 --> 00:32:39,880 Speaker 10: terms of competitiveness. 567 00:32:40,040 --> 00:32:43,920 Speaker 2: Give us sense how you became CEO. What brought you 568 00:32:44,040 --> 00:32:44,880 Speaker 2: Chevron to beginning with? 569 00:32:45,040 --> 00:32:48,520 Speaker 10: I had a degree in chemical engineering, and I got 570 00:32:48,520 --> 00:32:50,880 Speaker 10: a summer job where I worked in engineering and really 571 00:32:51,000 --> 00:32:54,160 Speaker 10: enjoyed it in the early nineteen eighties. In my early twenties, 572 00:32:55,280 --> 00:32:57,560 Speaker 10: I decided to go to California. I land with Standard 573 00:32:57,600 --> 00:33:00,240 Speaker 10: Oil of California, which is what our company was own 574 00:33:00,280 --> 00:33:03,640 Speaker 10: ass at the time, and I found myself working with 575 00:33:03,680 --> 00:33:07,680 Speaker 10: incredibly talented people on important projects around the world that 576 00:33:07,760 --> 00:33:12,640 Speaker 10: blended engineering and technology with economics and business, and then 577 00:33:12,680 --> 00:33:16,840 Speaker 10: with this geopolitical overlay that we're talking about, and forty 578 00:33:16,880 --> 00:33:18,640 Speaker 10: three years later, I'm still doing it. 579 00:33:18,920 --> 00:33:21,080 Speaker 2: Looking back in your career, was there a formative moment 580 00:33:21,160 --> 00:33:23,360 Speaker 2: that you look back on and draw from as you 581 00:33:23,480 --> 00:33:25,880 Speaker 2: deal with crises or difficult situations. 582 00:33:26,000 --> 00:33:29,960 Speaker 10: I'll tell you the most recent one that I learned 583 00:33:30,000 --> 00:33:35,880 Speaker 10: a lot from is COVID, and I had some insights 584 00:33:35,920 --> 00:33:38,360 Speaker 10: that this thing was perhaps going to be worse than 585 00:33:38,400 --> 00:33:40,640 Speaker 10: most people thought, and I was able to use that 586 00:33:40,720 --> 00:33:43,400 Speaker 10: to begin to mobilize a response to our company before 587 00:33:43,880 --> 00:33:46,440 Speaker 10: the rest of the world really recognized what was going on. 588 00:33:46,520 --> 00:33:47,800 Speaker 10: One of the first things that I did is I 589 00:33:47,840 --> 00:33:50,720 Speaker 10: called my three immediate predecessors, each of whom served as 590 00:33:50,760 --> 00:33:53,320 Speaker 10: CEO for about a decade, and all of whom lived 591 00:33:53,360 --> 00:33:55,760 Speaker 10: within a stone's throw of where I lived. And they 592 00:33:55,800 --> 00:33:58,760 Speaker 10: had gone through wars, they had gone through terrorist attacks, 593 00:33:59,080 --> 00:34:02,720 Speaker 10: financial crises, and they all had experience dealing with an 594 00:34:02,800 --> 00:34:06,720 Speaker 10: unexpected black Swan type of event. And they were incredibly 595 00:34:06,760 --> 00:34:09,800 Speaker 10: generous with their reflections on what they would have done differently, 596 00:34:10,360 --> 00:34:13,319 Speaker 10: their suggestions to me on what I should do in 597 00:34:13,360 --> 00:34:16,600 Speaker 10: response to it. And it was nice to not have 598 00:34:16,640 --> 00:34:18,400 Speaker 10: to figure it out all myself. 599 00:34:19,160 --> 00:34:22,080 Speaker 2: You've been CEO for a while. What is there left 600 00:34:22,120 --> 00:34:23,280 Speaker 2: for you to accomplish? 601 00:34:23,480 --> 00:34:27,120 Speaker 10: Well, we've got immediate integration of an acquisition. We're going 602 00:34:27,160 --> 00:34:31,480 Speaker 10: through a large corporate restructuring, which is rewiring business processes 603 00:34:31,520 --> 00:34:34,320 Speaker 10: and where work gets done. We've got a contract to 604 00:34:34,360 --> 00:34:38,800 Speaker 10: operate in Kazakhstan that runs out in the next few years. 605 00:34:39,040 --> 00:34:40,879 Speaker 10: Those would be some things that are on my list 606 00:34:41,160 --> 00:34:42,560 Speaker 10: that still need to be taken care of. 607 00:34:44,200 --> 00:34:47,200 Speaker 2: Coming up, the Lone Star State is giving New York 608 00:34:47,239 --> 00:34:49,839 Speaker 2: to Wall Street a run for its money. We look 609 00:34:49,840 --> 00:34:52,600 Speaker 2: at what Dallas is doing to become its own version 610 00:34:52,920 --> 00:34:59,319 Speaker 2: of Lower Manhattan. This is a story about ambition. They 611 00:34:59,400 --> 00:35:02,000 Speaker 2: say every thing is bigger in Texas, but for the 612 00:35:02,000 --> 00:35:05,440 Speaker 2: Lone Star State, the status quo is not big enough, 613 00:35:05,880 --> 00:35:09,120 Speaker 2: particularly when it comes to the financial sector. Our colleague 614 00:35:09,120 --> 00:35:11,600 Speaker 2: Scarlett Foo went to Dallas to see what it is 615 00:35:11,640 --> 00:35:14,839 Speaker 2: doing to attract Wall Street business and whether it can 616 00:35:14,960 --> 00:35:16,000 Speaker 2: handle the growth. 617 00:35:19,600 --> 00:35:22,040 Speaker 11: When we first moved to Dallas, we lived across the 618 00:35:22,040 --> 00:35:25,040 Speaker 11: street from the kids elementary school, and I'll never forget 619 00:35:25,080 --> 00:35:27,120 Speaker 11: like walking through the park with like the ducks, and 620 00:35:27,640 --> 00:35:28,640 Speaker 11: it was like a fairy tale. 621 00:35:28,760 --> 00:35:31,880 Speaker 12: In Dallas, I think there's no limit. 622 00:35:32,200 --> 00:35:33,360 Speaker 13: Dallas is a great place to be. 623 00:35:33,800 --> 00:35:36,719 Speaker 1: Dallas has long been the financial hub of Texas. Since 624 00:35:36,719 --> 00:35:39,840 Speaker 1: the pandemic, it's become a leading financial and innovation center 625 00:35:39,880 --> 00:35:42,960 Speaker 1: in the nation. According to the Census Bureau, Dallas Fort 626 00:35:42,960 --> 00:35:46,200 Speaker 1: Worth Arlington was the third largest gaining metro area in 627 00:35:46,280 --> 00:35:49,200 Speaker 1: the US from July twenty twenty three to July twenty 628 00:35:49,239 --> 00:35:52,400 Speaker 1: twenty four, adding almost one hundred and seventy thousand residents. 629 00:35:52,600 --> 00:35:55,160 Speaker 14: I moved for work. I had a great opportunity to 630 00:35:55,200 --> 00:35:58,120 Speaker 14: join innovative company that was wanting to grow from local 631 00:35:58,239 --> 00:36:01,200 Speaker 14: to global. I was fifteen years an entrepreneur in Los 632 00:36:01,280 --> 00:36:04,840 Speaker 14: Angeles and truly thirty thousand miles a year in a 633 00:36:04,840 --> 00:36:08,040 Speaker 14: car trying to get home with the kids all that 634 00:36:08,080 --> 00:36:09,960 Speaker 14: good stuff, and I just thought there had to be 635 00:36:10,000 --> 00:36:12,160 Speaker 14: a better way. And we just started looking. And a 636 00:36:12,160 --> 00:36:14,239 Speaker 14: friend called me from here in Dallas. He says, you've 637 00:36:14,239 --> 00:36:16,000 Speaker 14: got to come out and take a look and see 638 00:36:16,000 --> 00:36:16,520 Speaker 14: all the things. 639 00:36:16,400 --> 00:36:17,320 Speaker 10: That are going on here. 640 00:36:18,200 --> 00:36:20,719 Speaker 14: And I did, and here we are eleven years later. 641 00:36:21,400 --> 00:36:24,520 Speaker 1: Sarah and Ryan Brown ditched California palm trees for Texas 642 00:36:24,520 --> 00:36:27,960 Speaker 1: tumbleweeds ten years ago, settling down in the Dallas suburb 643 00:36:28,040 --> 00:36:28,880 Speaker 1: of Highland Park. 644 00:36:29,360 --> 00:36:34,759 Speaker 14: I see an influx of tech and tech focused entrepreneurs 645 00:36:35,120 --> 00:36:39,520 Speaker 14: and operators more and more every day. It's a hot 646 00:36:39,560 --> 00:36:41,520 Speaker 14: topic here, and I think a lot of it is 647 00:36:41,560 --> 00:36:44,600 Speaker 14: also coming because the investments that are coming here is 648 00:36:44,640 --> 00:36:46,719 Speaker 14: a tech entrepreneur or someone in tech. You don't have 649 00:36:46,760 --> 00:36:49,120 Speaker 14: to live out of your car in Silicon Valley. 650 00:36:49,480 --> 00:36:53,000 Speaker 1: This relative affordability makes a northern Texas region a magnet 651 00:36:53,040 --> 00:36:55,240 Speaker 1: for both young people at the start of their careers 652 00:36:55,600 --> 00:36:58,800 Speaker 1: as well as established professionals. Dallas now has the second 653 00:36:58,800 --> 00:37:01,880 Speaker 1: most finance jobs in the ahead of both Chicago and 654 00:37:02,040 --> 00:37:04,839 Speaker 1: la and while it might remain some way off New York, 655 00:37:05,160 --> 00:37:07,840 Speaker 1: Mayor Eric Johnson sees his city as more than just 656 00:37:07,880 --> 00:37:08,440 Speaker 1: an upstart. 657 00:37:09,040 --> 00:37:12,120 Speaker 15: The future is Dallas because I think this is where 658 00:37:12,160 --> 00:37:15,440 Speaker 15: the growth in the country is occurring. In terms of business, 659 00:37:15,880 --> 00:37:18,000 Speaker 15: the Sun Belt is the fastest growing part of the 660 00:37:18,080 --> 00:37:21,600 Speaker 15: United States. Texas is the fastest growing part of the 661 00:37:21,600 --> 00:37:24,600 Speaker 15: Sun Belt. Dallas is the fastest growing part of Texas. 662 00:37:24,800 --> 00:37:26,919 Speaker 15: You know, if you want to be successful, you go 663 00:37:27,040 --> 00:37:29,279 Speaker 15: where the action is headed, not where it is. I 664 00:37:29,280 --> 00:37:32,160 Speaker 15: think the action in this country is headed to this 665 00:37:32,239 --> 00:37:35,000 Speaker 15: part of the United States, and you can't be in 666 00:37:35,040 --> 00:37:36,280 Speaker 15: a better place than Dallas. 667 00:37:36,719 --> 00:37:39,680 Speaker 1: Financial firms are leading the action in Dallas, from Wells 668 00:37:39,719 --> 00:37:42,680 Speaker 1: Fargo topping out construction of a five hundred million dollar 669 00:37:42,760 --> 00:37:45,760 Speaker 1: campus in the inner city suburb of Irving, to Goldman 670 00:37:45,840 --> 00:37:49,319 Speaker 1: Sacks building its second biggest US headquarters downtown, to the 671 00:37:49,320 --> 00:37:52,400 Speaker 1: New York Stock Exchange moving its Chicago branch to Dallas, 672 00:37:52,719 --> 00:37:55,400 Speaker 1: culminating in what some are calling y'all street. 673 00:37:55,640 --> 00:37:57,719 Speaker 14: Folks have been trying to figure out what to call it. Right, 674 00:37:57,719 --> 00:38:01,360 Speaker 14: you have the Texas Stock Exchange Texas, and then all 675 00:38:01,400 --> 00:38:04,719 Speaker 14: of a sudden, y'all Street came in. I think it's 676 00:38:04,760 --> 00:38:05,320 Speaker 14: going to stick. 677 00:38:05,800 --> 00:38:06,560 Speaker 6: I think it's great. 678 00:38:06,960 --> 00:38:11,239 Speaker 12: I still would tell my bankers, follow the money. That's 679 00:38:11,239 --> 00:38:13,680 Speaker 12: exactly what everybody's doing. The money's here. 680 00:38:14,080 --> 00:38:16,959 Speaker 1: Elena Agatha is chairman of the Dallas Region for JP 681 00:38:17,080 --> 00:38:20,040 Speaker 1: Morgan Chase. After starting her banking career in New York, 682 00:38:20,120 --> 00:38:23,240 Speaker 1: followed by stints in London and San Francisco, she returned 683 00:38:23,239 --> 00:38:25,000 Speaker 1: home to Texas in nineteen eighty four. 684 00:38:25,480 --> 00:38:28,759 Speaker 12: As I grew with the firm, the state grew. I've 685 00:38:28,800 --> 00:38:33,520 Speaker 12: literally watched it happen, and with today thirty two thousand employees, 686 00:38:34,000 --> 00:38:37,839 Speaker 12: we have more employees in the state of Texas than 687 00:38:37,920 --> 00:38:41,280 Speaker 12: any other region for JP Morgan, including New York. Including 688 00:38:41,280 --> 00:38:41,880 Speaker 12: New York. 689 00:38:42,080 --> 00:38:44,640 Speaker 1: Agatha has seen the city of Dallas grow and stature 690 00:38:44,719 --> 00:38:47,760 Speaker 1: in the financial world. In the nineteen eighties, Michael Lewis 691 00:38:47,840 --> 00:38:50,239 Speaker 1: coined the term equities in Dallas and made that into 692 00:38:50,239 --> 00:38:54,000 Speaker 1: a shorthand for the least desirable assignment and investment bank, 693 00:38:54,120 --> 00:38:55,960 Speaker 1: the equivalent of being out of sight. 694 00:38:55,800 --> 00:38:58,200 Speaker 12: Out of mind. Yeah anymore? 695 00:38:58,320 --> 00:39:00,759 Speaker 1: Yeah, does anyone reference that? No, No one says that. 696 00:39:00,880 --> 00:39:03,399 Speaker 12: No one says that anymore. But I remember that. But 697 00:39:03,480 --> 00:39:04,600 Speaker 12: no one says that anymore. 698 00:39:04,600 --> 00:39:05,320 Speaker 1: Why do you think that is? 699 00:39:05,480 --> 00:39:09,320 Speaker 12: I think because of the growth. I think the wealth, 700 00:39:09,560 --> 00:39:12,879 Speaker 12: the wealth that has been generated here today. We are 701 00:39:12,920 --> 00:39:16,040 Speaker 12: so diverse as an economy. I mean, we got smart 702 00:39:16,360 --> 00:39:23,720 Speaker 12: it's everything from tech, food, retail, huge retail. But that diversity, 703 00:39:23,960 --> 00:39:27,560 Speaker 12: it really attracted the growth that people didn't have to 704 00:39:27,600 --> 00:39:30,839 Speaker 12: just be an Ola Gasca to move down here years ago. 705 00:39:31,000 --> 00:39:32,560 Speaker 12: You really needed to be in New York for a 706 00:39:32,560 --> 00:39:35,600 Speaker 12: big job. That has all changed. We have lots of 707 00:39:35,760 --> 00:39:39,440 Speaker 12: jobs here in Dallas that are national jobs. 708 00:39:39,760 --> 00:39:41,400 Speaker 13: Dallas has a lot of things going for it as 709 00:39:41,400 --> 00:39:44,480 Speaker 13: a city. Number one, there's the infrastructure here too. It's 710 00:39:44,480 --> 00:39:48,160 Speaker 13: a very business friendly environment. And three, there's that tremendous 711 00:39:48,239 --> 00:39:51,760 Speaker 13: depth of a talent pool. Young professionals are coming here 712 00:39:51,800 --> 00:39:55,239 Speaker 13: in droves. Just anecdotally. We recently had a post for 713 00:39:55,400 --> 00:39:58,360 Speaker 13: a new analyst position and had over two hundred applicants 714 00:39:58,360 --> 00:40:01,680 Speaker 13: within twenty four hours from outside of the state. Of Texas. 715 00:40:01,800 --> 00:40:03,640 Speaker 13: Really now, this is a career move. It is the 716 00:40:03,760 --> 00:40:05,840 Speaker 13: career move for young people to come to Dallas to 717 00:40:05,840 --> 00:40:06,480 Speaker 13: build something. 718 00:40:06,920 --> 00:40:09,920 Speaker 1: JP Morgan isn't the only big bank betting on Dallas. 719 00:40:10,120 --> 00:40:13,239 Speaker 1: I believe you can almost see Goldman Sachs's new headquarters 720 00:40:13,239 --> 00:40:14,200 Speaker 1: from your office here. 721 00:40:14,280 --> 00:40:16,279 Speaker 12: Oh right there, Yes, I look at it every day. 722 00:40:16,320 --> 00:40:20,400 Speaker 12: It's very annoying. No I'm chasing. But and then in 723 00:40:20,480 --> 00:40:24,880 Speaker 12: Bavay and you just see this this along this park. 724 00:40:25,040 --> 00:40:29,600 Speaker 12: The growth that has happened, and it's attracted many financial 725 00:40:29,719 --> 00:40:31,000 Speaker 12: type institutions. 726 00:40:31,320 --> 00:40:33,640 Speaker 13: The opportunity set here in Dallas, especially in the wealth 727 00:40:33,680 --> 00:40:36,920 Speaker 13: management side, is tremendous. The number of households in our 728 00:40:36,960 --> 00:40:39,640 Speaker 13: target demographic has grown twenty percent year over year in 729 00:40:39,680 --> 00:40:41,960 Speaker 13: the last one year alone, and it's been consistent over 730 00:40:42,000 --> 00:40:43,960 Speaker 13: the last five. So I just can't imagine a better 731 00:40:44,000 --> 00:40:45,160 Speaker 13: place to do what I'm doing. 732 00:40:45,360 --> 00:40:47,640 Speaker 1: Ashley Herps is the head of the Dallas market at 733 00:40:47,719 --> 00:40:50,320 Speaker 1: JP Morgan Private Bank. He is one of the city's 734 00:40:50,320 --> 00:40:51,680 Speaker 1: many recent transplants. 735 00:40:52,040 --> 00:40:54,719 Speaker 13: We moved here for my job. The opportunity to run 736 00:40:54,800 --> 00:40:57,879 Speaker 13: JP Morgan's private bank in Dallas was an absolute dream 737 00:40:57,920 --> 00:41:01,040 Speaker 13: come true. Was a dream job, no break for our family. 738 00:41:02,120 --> 00:41:06,040 Speaker 13: It was definitely not easy. The career decision was easy, 739 00:41:06,040 --> 00:41:09,000 Speaker 13: the personal decision was harder. It's just been an incredible 740 00:41:09,400 --> 00:41:12,520 Speaker 13: place to build a career for me. Like I love 741 00:41:12,560 --> 00:41:14,279 Speaker 13: my job. I can't wait to get to work every day. 742 00:41:14,320 --> 00:41:17,000 Speaker 13: But my family's happy and that's really important to me 743 00:41:17,080 --> 00:41:19,640 Speaker 13: and I. I think it's a good testament to what 744 00:41:19,760 --> 00:41:20,960 Speaker 13: living in Dallas is Like. 745 00:41:21,360 --> 00:41:24,440 Speaker 15: Dallas absolutely can handle the population growth we're experiencing. 746 00:41:24,719 --> 00:41:27,360 Speaker 1: Dallas Mayor Eric Johnson is quick to compare his city 747 00:41:27,400 --> 00:41:28,000 Speaker 1: with New York. 748 00:41:28,520 --> 00:41:33,000 Speaker 15: This has been a long term, conscious effort on the 749 00:41:33,080 --> 00:41:38,279 Speaker 15: part of the city and our business community to make 750 00:41:38,320 --> 00:41:42,560 Speaker 15: sure Dallas continues to be a truly pro business city. 751 00:41:42,719 --> 00:41:46,080 Speaker 15: It's not just rhetoric. We are a sanctuary city from 752 00:41:46,160 --> 00:41:48,880 Speaker 15: socialism in this country. This is a place where we 753 00:41:48,960 --> 00:41:53,400 Speaker 15: still actually view business and people who create jobs and 754 00:41:53,440 --> 00:41:57,359 Speaker 15: people who contribute to the economic growth city. That's a 755 00:41:57,400 --> 00:42:00,640 Speaker 15: good thing. They're not the enemy. We're not trying to 756 00:42:00,680 --> 00:42:03,680 Speaker 15: punish them. We don't vilify them. It's just not in 757 00:42:03,719 --> 00:42:06,600 Speaker 15: our DNA like. Dallas is a city that gave the 758 00:42:06,640 --> 00:42:09,400 Speaker 15: world Texas instruments, gave the world Southwest Airlines. A lot 759 00:42:09,400 --> 00:42:12,200 Speaker 15: of are great fortune five cutter companies started here. We 760 00:42:12,360 --> 00:42:15,480 Speaker 15: have a culture here that really respects business. 761 00:42:15,760 --> 00:42:18,160 Speaker 1: So when it comes to financial firms, what do you 762 00:42:18,200 --> 00:42:20,560 Speaker 1: think is Dallas's biggest straw to that sector. 763 00:42:20,840 --> 00:42:23,800 Speaker 15: We don't really feel the need to throw incentives around 764 00:42:23,880 --> 00:42:26,799 Speaker 15: to get people to invest in Dallas and to move 765 00:42:26,840 --> 00:42:30,720 Speaker 15: to Dallas and to relocate significant operations to Dallas. We 766 00:42:30,760 --> 00:42:33,840 Speaker 15: will target a big fish like a Goldman Sacks, because 767 00:42:33,880 --> 00:42:38,280 Speaker 15: then the other companies will follow. You'll create an incentive 768 00:42:38,320 --> 00:42:40,680 Speaker 15: for other financial service firms to be in that same 769 00:42:40,719 --> 00:42:43,200 Speaker 15: ecosystem with the company like a Goldman Saxe, But you 770 00:42:43,239 --> 00:42:45,360 Speaker 15: also will get the accounting firms, the law firms, and 771 00:42:45,400 --> 00:42:48,600 Speaker 15: it becomes sort of this virtuous cycle. So the Goldman 772 00:42:48,680 --> 00:42:50,759 Speaker 15: Sacks deals a great example of a case where they're 773 00:42:50,800 --> 00:42:53,880 Speaker 15: going to invest over half a billion dollars in an 774 00:42:53,920 --> 00:42:57,200 Speaker 15: eight hundred thousand square foot development that's going to create 775 00:42:57,480 --> 00:43:00,839 Speaker 15: five thousand jobs and it's just going to be transformative 776 00:43:00,880 --> 00:43:01,520 Speaker 15: for our city. 777 00:43:02,280 --> 00:43:04,560 Speaker 1: Chris Kleiner. It leads Hunt Realty, which is one of 778 00:43:04,600 --> 00:43:07,759 Speaker 1: the developers behind the Goldenen Project. Hunt Realty is also 779 00:43:07,800 --> 00:43:10,520 Speaker 1: working on a massive development to the north of Dallas 780 00:43:10,520 --> 00:43:14,200 Speaker 1: with other market names. The Professional Golfers Association of America 781 00:43:14,280 --> 00:43:15,040 Speaker 1: and Universal. 782 00:43:15,360 --> 00:43:18,840 Speaker 16: Fields is our twenty five hundred acre development in Frisco. 783 00:43:19,040 --> 00:43:23,840 Speaker 16: It's a gem amidst all the unique, positive things going 784 00:43:23,880 --> 00:43:28,120 Speaker 16: on in Frisco and Prosper and other parts North and 785 00:43:28,160 --> 00:43:30,760 Speaker 16: there was the opportunity to master plan something really special. 786 00:43:30,880 --> 00:43:35,320 Speaker 16: We set our sites to create something different, something world class. 787 00:43:35,920 --> 00:43:39,040 Speaker 16: The inclusion of twenty six miles of trails, the inclusion 788 00:43:39,120 --> 00:43:43,320 Speaker 16: of water, the inclusion of parks, different price point homes, 789 00:43:43,840 --> 00:43:50,480 Speaker 16: very unique, mixed use, retail, residential office development. Mass attracts mass, 790 00:43:50,600 --> 00:43:52,960 Speaker 16: and we're over a thousand homes being built. We've got 791 00:43:53,040 --> 00:43:58,400 Speaker 16: great residential home developer partners. Universal has bought one hundred acres. 792 00:43:58,440 --> 00:44:00,799 Speaker 16: They're going to be opening a very nique ages three 793 00:44:00,840 --> 00:44:04,680 Speaker 16: to eleven theme park here in twenty six. University of 794 00:44:04,760 --> 00:44:07,600 Speaker 16: North Texas has a Frisco campus that is adjacent to 795 00:44:07,640 --> 00:44:10,800 Speaker 16: our site. We're thrilled with the potential and we're seeing 796 00:44:10,840 --> 00:44:11,840 Speaker 16: that come to life. 797 00:44:12,280 --> 00:44:15,319 Speaker 1: Just northeast of Fields lies Prosper, another small town in 798 00:44:15,360 --> 00:44:17,840 Speaker 1: the Dallas Fort Worth area that is pitching families on 799 00:44:17,880 --> 00:44:20,000 Speaker 1: its affordability and quality of life. 800 00:44:20,239 --> 00:44:24,319 Speaker 17: We're saying, here's this community that we have awesome amenities, 801 00:44:24,640 --> 00:44:28,880 Speaker 17: great school district. You've got space to meet people. We 802 00:44:28,960 --> 00:44:31,960 Speaker 17: have lifestyle programs. It doesn't matter where you come from. 803 00:44:32,000 --> 00:44:34,040 Speaker 17: We get a lot of people in from the West Coast, 804 00:44:34,200 --> 00:44:37,880 Speaker 17: Toyota relocation. There's been other Fortune five hundred relocation. 805 00:44:38,600 --> 00:44:42,360 Speaker 1: David blom is president of Telesgroup. It's Winsong Range project 806 00:44:42,400 --> 00:44:44,959 Speaker 1: in Prosper is now home to some of Prosper's forty 807 00:44:45,040 --> 00:44:48,520 Speaker 1: thousand plus residents. From two thousand to twenty twenty five, 808 00:44:48,840 --> 00:44:51,960 Speaker 1: Prosper's population has grown by two thousand percent. 809 00:44:52,840 --> 00:44:58,080 Speaker 17: It's become more diverse. And diverse as probably an overused term, 810 00:44:58,560 --> 00:45:01,600 Speaker 17: but with corporate reloca from the West Coast, we've had 811 00:45:01,640 --> 00:45:05,280 Speaker 17: people come in from the Midwest, from the northeast. 812 00:45:05,760 --> 00:45:08,120 Speaker 1: The risk is all this growth makes Dallas and it's 813 00:45:08,120 --> 00:45:10,080 Speaker 1: surrounding suburbs less affordable. 814 00:45:10,400 --> 00:45:13,279 Speaker 11: There was any issue that our community is facing is 815 00:45:13,280 --> 00:45:16,160 Speaker 11: that the housing prices are going up so less families 816 00:45:16,160 --> 00:45:18,000 Speaker 11: are able to afford it. So we have more seats 817 00:45:18,000 --> 00:45:20,040 Speaker 11: in our school, So that could be two ways, right, 818 00:45:20,080 --> 00:45:22,960 Speaker 11: We don't have enough funding for our school, but we 819 00:45:23,000 --> 00:45:26,240 Speaker 11: don't have crowded schools either, so I guess it's a balance. 820 00:45:26,520 --> 00:45:29,440 Speaker 1: New residents also point out a downside of master planned 821 00:45:29,480 --> 00:45:33,520 Speaker 1: communities the limited outdoor public spaces, especially when compared with 822 00:45:33,560 --> 00:45:36,040 Speaker 1: the natural landscapes and wonders along the coasts. 823 00:45:36,280 --> 00:45:38,440 Speaker 14: I think it's really difficult to be a weekend warrior 824 00:45:38,480 --> 00:45:41,200 Speaker 14: here on the recreation side. And when we lived in California, 825 00:45:41,320 --> 00:45:42,920 Speaker 14: we're at the ocean, we're at the beach, we're in 826 00:45:43,000 --> 00:45:47,200 Speaker 14: the mountains, we're doing everything outside. There's not a National 827 00:45:47,239 --> 00:45:50,719 Speaker 14: forest here, there's no Bureau Land Management here, and so 828 00:45:50,800 --> 00:45:54,480 Speaker 14: everything is very privatized. So I do miss the ability 829 00:45:54,480 --> 00:45:56,960 Speaker 14: to just get outside and maybe get lost. 830 00:45:57,400 --> 00:46:00,320 Speaker 1: The growth of Dallas can't be questioned, but y'all Street 831 00:46:00,360 --> 00:46:03,400 Speaker 1: is not yet a replacement for Wall Street. While firms 832 00:46:03,400 --> 00:46:06,120 Speaker 1: are adding middle and back office jobs there, the seats 833 00:46:06,120 --> 00:46:09,000 Speaker 1: of power still reside in New York. Jamie Diamond and 834 00:46:09,040 --> 00:46:12,319 Speaker 1: the CEOs of JP Morgan's different businesses aren't likely to 835 00:46:12,360 --> 00:46:15,400 Speaker 1: move from the firm's brand new headquarters in Midtown Manhattan. 836 00:46:15,680 --> 00:46:17,560 Speaker 1: But Dallas is heading in the right direction. 837 00:46:18,120 --> 00:46:21,960 Speaker 12: The growth just keeps happening. Our Plano office was about 838 00:46:22,160 --> 00:46:24,560 Speaker 12: six thousand when we built it, and we kept adding 839 00:46:24,560 --> 00:46:27,120 Speaker 12: to it. You need an area of the country that 840 00:46:27,160 --> 00:46:30,160 Speaker 12: can get to both coasts quickly, and this center of 841 00:46:30,160 --> 00:46:34,280 Speaker 12: the country is a huge advantage. Jamie used to tease 842 00:46:34,280 --> 00:46:36,960 Speaker 12: about the headquarters. We'll be here. No, No, it's in 843 00:46:37,000 --> 00:46:40,520 Speaker 12: New York, make no mistake. But he is very proud 844 00:46:40,600 --> 00:46:41,240 Speaker 12: of Texas. 845 00:46:41,440 --> 00:46:44,359 Speaker 15: I want people to know that Dallas really is a 846 00:46:44,480 --> 00:46:47,000 Speaker 15: place where the American dream is still very much alive 847 00:46:47,040 --> 00:46:50,600 Speaker 15: and well. And it's not rhetoric, like, we really are 848 00:46:50,640 --> 00:46:52,600 Speaker 15: a place where people can come. We're not from here, 849 00:46:52,680 --> 00:46:56,160 Speaker 15: we walk come outsiders. It's a place that really embraces 850 00:46:56,760 --> 00:47:00,400 Speaker 15: energy and hard work that can do spear we have 851 00:47:00,640 --> 00:47:02,640 Speaker 15: when we see in other folks, we embrace it. 852 00:47:02,840 --> 00:47:04,799 Speaker 1: How long will it take for Dallas to win as 853 00:47:04,920 --> 00:47:06,240 Speaker 1: a financial center. 854 00:47:06,320 --> 00:47:08,760 Speaker 12: I think we're winning. I really think we're winning now. 855 00:47:09,080 --> 00:47:13,600 Speaker 12: With the growth. There are still people that have not 856 00:47:13,760 --> 00:47:17,920 Speaker 12: been to Texas that might have kind of an image 857 00:47:17,920 --> 00:47:20,480 Speaker 12: in their head. So I think that over the next 858 00:47:20,520 --> 00:47:24,799 Speaker 12: ten years is more people understand the sophistication. I think 859 00:47:24,880 --> 00:47:28,720 Speaker 12: that that image of Texas will continue to change. 860 00:47:30,160 --> 00:47:32,040 Speaker 2: That does it for us Here at Wall Street Week, 861 00:47:32,200 --> 00:47:35,360 Speaker 2: I'm David Weston. See you next week for more stories 862 00:47:35,400 --> 00:47:50,440 Speaker 2: of capitalism.