Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Tom Keene along
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Speaker 2: the Bloomberg Terminal, and the Bloomberg Business App. I learned this.
Speaker 2: I sort of stumbled into this. It wasn't a received
Speaker 2: wisdom when I was twenty eight or whatever. There are
Speaker 2: exactly two people on the strategy side, fancy academic people
Speaker 2: that have never enjoyed the big walking away from them.
Speaker 2: And then there's people that migrate from a trading desk,
Speaker 2: a rates desk over to strategy and portfolio management.
Speaker 3: Who does that?
Speaker 2: They're different, they're hard won. You'll learn us at Villanova
Speaker 2: and I think Christina, I mean, it's's the real deal
Speaker 2: because she's enjoyed having the bid walk away from.
Speaker 4: Her bid walk away.
Speaker 3: Christina can't many joins and she's a senior portfolio manager
Speaker 3: at Invesco. You know what is as a senior portfolio manager?
Speaker 3: What does your portfolio look like these days? How is
Speaker 3: it allocated? How is this structured? How's your portfolio structure today?
Speaker 5: Of course, so thank you guys so much for having
Speaker 5: me in. So I work on our Global Debt team,
Speaker 5: and so our universe that we look at is rates, currencies,
Speaker 5: ANDFX globally and excuse me, rates, currencies and credit. And
Speaker 5: I think when we look at the world right now,
Speaker 5: one of the primary drivers were finally at this precipice
Speaker 5: of the FED starting their easing cycle. So many others
Speaker 5: central banks have been waiting for their cues from the Fed,
Speaker 5: especially the emerging market central banks that started their easing
Speaker 5: early and now are been kind of waiting. So there's
Speaker 5: a big focus on currencies, especially right now, because I
Speaker 5: think that's where the big driver is and it's us
Speaker 5: central of what's driving it and where are we going
Speaker 5: from here? And I think when we look at rates,
Speaker 5: especially in developed markets, it's a little less interesting from
Speaker 5: what do we want to own out the curve? Because
Speaker 5: there's not a lot of value of how low rates
Speaker 5: still are and how flat and inverted the curves are.
Speaker 3: So I mean, all right, so I could sit you know,
Speaker 3: as Tom knows, I'm happy to sit in my two
Speaker 3: year treasure getting near four percent. How much credit I
Speaker 3: assume you guys are not just doing that. You're taking
Speaker 3: some credit risk. Maybe, how do you think about that?
Speaker 5: We are so you said you'd be happy to sit
Speaker 5: in the front end, and I think that makes sense
Speaker 5: when we look at rates, and in a lot of sense,
Speaker 5: it makes sense when we look at credit as well.
Speaker 5: You can be parked in front end high grade credit
Speaker 5: and even emerging market high grade credit in the front end,
Speaker 5: and we think there's some value there. But again out
Speaker 5: the curve, things are a lot richer, and we don't
Speaker 5: think that there's a lot of value. Just as we
Speaker 5: have this normalization, we need to have our reprice there.
Speaker 3: But I'm looking at the US Corporate High Yield Index,
Speaker 3: the Bloomberg US Corporate High you In Index. We paid
Speaker 3: good money for that index.
Speaker 4: Six point nine.
Speaker 3: That is nice.
Speaker 4: How do you like to think about high yield?
Speaker 5: But again, if you think about cash, where you're getting
Speaker 5: for your cash earnings?
Speaker 2: Too?
Speaker 5: It's really about spread. And I think there is this
Speaker 5: concept in the market of investors do care about all
Speaker 5: in yield, But I think you have to break it
Speaker 5: down and look at spreads, and spreads are at historically
Speaker 5: tight levels. I mean, we had a little bit of
Speaker 5: blowing out with the noise early in August. In August, yeah,
Speaker 5: but we're we via. The quickness with which we snapped back,
Speaker 5: I think is telling of what is positioning out there.
Speaker 5: What do we need to be concerned with? Are you
Speaker 5: susceptible to this?
Speaker 2: Again to translate that the bid was put in in
Speaker 2: non full faith and credit papers snapped right back like equities, yeap?
Speaker 2: Why what? What is the reason for the bid there?
Speaker 2: Is it just desperation to capture coupon? You know? FOBOSEI
Speaker 2: one oh one? What's the why?
Speaker 5: I think it's a combo of both. I think that
Speaker 5: bears when you have just cash cash returns where they
Speaker 5: are funds perpetually have money that they need to invest.
Speaker 5: And I think that there's a comfort which is where
Speaker 5: we kind of fall down the middle on the economic
Speaker 5: outlook that we're not looking for a recession. We think
Speaker 5: that there's the FED has this balance they're going to start.
Speaker 5: The question of twenty five or fifty is not about
Speaker 5: a recession to us, It's about we've been tight long
Speaker 5: enough and we can kind of adjust.
Speaker 2: I mean, two years ago my Essay of the Year
Speaker 2: was Lawrence MacDonald, the author writing out just an incredibly
Speaker 2: clear dissertation of the wall of money that's out there.
Speaker 2: You're in the turret at investco of where guessing where
Speaker 2: that money's going to flow? Adjust that now post labor Day?
Speaker 2: Where is the wall of cash going to flow?
Speaker 5: So I think September. Every year in September you have
Speaker 5: massive amount of corporate supply. Certainly that will be a recipient.
Speaker 5: And then I think it really is about this. What
Speaker 5: defines the month of September will be the Fed beginning
Speaker 5: their easing cycle. That has been this two year waiting
Speaker 5: period of is the Fed going to go?
Speaker 3: Are we on the.
Speaker 5: Precipice of recession?
Speaker 6: Do we have to go?
Speaker 5: And I think that allows people to put money back
Speaker 5: into the market and say what are we comfortable with?
Speaker 5: Where do we want to part?
Speaker 2: I mean, good morning Larry McDonald. I mean he hasn't
Speaker 2: done anything since that is the year he just checked out.
Speaker 2: He's been on the beach. But Paul, to me, the
Speaker 2: heart of the matter is is the importance of September. Yeah,
Speaker 2: it's a signal.
Speaker 3: I know, hopefully we have a smooth month. Christina, how
Speaker 3: do you think this Fed's going to proceed here? Do
Speaker 3: you think they start this month? And then I don't know,
Speaker 3: every meeting, every other meeting fifty basis points, twenty five
Speaker 3: basis points. How are you guys on your desk thinking
Speaker 3: about that?
Speaker 2: So?
Speaker 5: I think Friday's pay or report will be really important
Speaker 5: to just set the tone.
Speaker 2: Again.
Speaker 3: I'm in the office Friday, just pointing out everybody.
Speaker 5: And in some sense it is silly that we are
Speaker 5: even at this point for the start of a cycle
Speaker 5: that has been years in the making. We're concerned about
Speaker 5: a data print that's a few days away. But again,
Speaker 5: our view is that we're talking about a soft landing.
Speaker 5: And I'd say our base case is still that we're
Speaker 5: going to get more of a mid cycle adjustment from
Speaker 5: the FED, rather than that they need to ease to neutral,
Speaker 5: which means you probably if they start with a fifty,
Speaker 5: you might get one hundred by year and one hundred
Speaker 5: basis points. But I think that that's really the outlook
Speaker 5: into twenty five is a lot less clear because you
Speaker 5: need election results and what has that adjustment?
Speaker 2: I mean, Christina Campany, this is we don't do anything here.
Speaker 2: All we do is read question. So this is from YouTube.
Speaker 2: Please comment on portfolios for individuals separating out risk assets.
Speaker 2: I don't have fifty percent of my money and fixed income,
Speaker 2: but I don't have one hundred percent inequities. I mean,
Speaker 2: it's like sixty forty part of the investo discussion or
Speaker 2: have you come up with new math?
Speaker 5: I think that's still is kind of how we think
Speaker 5: about the balance. And I think the difference in this
Speaker 5: day and age where we've returned after the GFSA and
Speaker 5: you've had this extended period of near zero front end rates,
Speaker 5: cash as an allocation in that mix for the individual
Speaker 5: makes sense to balance.
Speaker 3: Are there sectors in the fixed income space that screen
Speaker 3: weal for you guys at a visco these days?
Speaker 5: So again, when we look I think when we look
Speaker 5: at particular opportunities in the market in rates, it's more
Speaker 5: of a curve trade and that readjustment currencies look interesting
Speaker 5: to us because we think in either case, you have
Speaker 5: this push and pull of what has buoyed the dollar
Speaker 5: and you've had US exceptionalism. But the other side of
Speaker 5: it is you have massive funding needs from the government
Speaker 5: and all this treasury issues that needs to be funded.
Speaker 5: We think that as you embark on this easing cycle,
Speaker 5: you could have a period of a week or dollar
Speaker 5: and thus there's a lot of currencies that are interesting
Speaker 5: to us. And then emerging market fixed income as well.
Speaker 5: Local market debt also looks interesting because the FED starts,
Speaker 5: these emerging market central banks can continue they're easing cycles
Speaker 5: and you have some opportunity there.
Speaker 2: One final question, are you managing for coupon or total return?
Speaker 5: Total return? It always has to be about total.
Speaker 2: Returns to job. Okay, Christina Katman, you thank you so
Speaker 2: much for the Invesco joining us right now, very important conversation.
Speaker 2: Matt Hornbach joins us right now, global head a macro
Speaker 2: strategy at Morgan Stanley. Matt, do you have to aggressively
Speaker 2: rewrite your macro strategy into Q four?
Speaker 4: Tom? Thanks for having me on the program.
Speaker 7: I don't think we're going to have to aggressively rewrite
Speaker 7: the outlook. I mean the risks that we put out
Speaker 7: there relative to our baseline forecasts were pretty clear. In
Speaker 7: that we did see downside risks to the US Treasury yields,
Speaker 7: and so I don't think we'll have to dramatically change
Speaker 7: the narrative as those risks are now being realized, but
Speaker 7: we probably will have to make some adjustments to our
Speaker 7: baseline yield forecast at some point here soon.
Speaker 2: With your world class view of Japan earned it, Morgan Stanley,
Speaker 2: is it all quiet on the Japanese front?
Speaker 4: Well, for now, yes, it seems to be.
Speaker 7: But you know, our economists do think the Bank of
Speaker 7: Japan will have the data it needs to raise rates.
Speaker 4: Once more, but only once more.
Speaker 7: And I think in order to get in va Ester
Speaker 7: is really excited about Japan in twenty twenty five, you're
Speaker 7: going to need more than just one more rate hike
Speaker 7: from the Bank of Japan.
Speaker 4: So for now, we think it's going to be.
Speaker 7: Pretty quiet, but it could get interesting, particularly because positioning
Speaker 7: in the market visa E. Japan still exists. It's still
Speaker 7: a story people want to trade. That means people want
Speaker 7: to see yields in Japan go higher, they want to
Speaker 7: see the yen continue to depreciate, and it could get
Speaker 7: interesting because those hopes and dreams may come crashing down
Speaker 7: if inflation in the country starts to moderate again.
Speaker 3: So, Matt, I'm just you know, I know, you spend
Speaker 3: a lot of time back and forth stationed in Tokyo,
Speaker 3: and I remember when Tokyo was the place to be
Speaker 3: outside of New York. Why do our investors paying so
Speaker 3: much attention to Japan the last twelve, eighteen, twenty four months,
Speaker 3: even Warren Buffett, when for twenty years we could care
Speaker 3: less what happened in Japan. What's changed?
Speaker 4: Well, yeah, I mean, Japan is definitely a good place
Speaker 4: to be for your personal life.
Speaker 7: But you're right, I think one of the things that
Speaker 7: has changed is the inflationary environment in Japan has shifted
Speaker 7: pretty dramatically over the past couple of years. You know,
Speaker 7: bear in mind that for the better part of the
Speaker 7: two and a half or three lost decades that we
Speaker 7: had in the country of Japan, that inflation couldn't get
Speaker 7: out of bed for anyone. And now we finally have
Speaker 7: inflation that at one point was higher than two percent
Speaker 7: on the underlying measures that you can look at, that's
Speaker 7: now come down a bit below two percent.
Speaker 4: But nevertheless, it's really an inflation story.
Speaker 2: Is the fad that banker of the world. I mean,
Speaker 2: you know, then the global mandate that you've got there
Speaker 2: with the terrific economic work of Morgan Stanley, and that
Speaker 2: is it a pivot point around your own power in
Speaker 2: the FED? Or is it more diffuse now in terms
Speaker 2: of monetary dynamics.
Speaker 7: Well, you know, I think certainly today the focus has
Speaker 7: really been on the FED, and that's somewhat that's somewhat
Speaker 7: a shame because you do have a lot of different
Speaker 7: central banks around the world doing different things with their
Speaker 7: monetary policy tool kits, and so you know, yes, it's
Speaker 7: true that the ECB is easing, and the Bank of
Speaker 7: Canada is easing, and the Bank of England is easing policy,
Speaker 7: but they're they're kind of going about it all somewhat differently,
Speaker 7: and I think that's that's a pretty unique environment, certainly
Speaker 7: for the.
Speaker 4: Past half a decade or two or.
Speaker 7: A full decade. And that's pretty unique that they're all
Speaker 7: doing different, slightly different things.
Speaker 2: What's the character of this bull market you see?
Speaker 7: Well, look, this is at the moment a slightly different
Speaker 7: bull market for bonds and we've seen historically mostly because
Speaker 7: the yield curve remains very inverted.
Speaker 4: This is not common.
Speaker 7: This happens less than ten percent of the time, going
Speaker 7: back as far as as the data will allow us
Speaker 7: to go back on the yield curve, this is a
Speaker 7: pretty unique period of time for the treasury market. And
Speaker 7: so you know, this bull market ultimately is being held
Speaker 7: back to a certain degree by the inversion of the
Speaker 7: yield curve. It makes owning treasury security is less attractive
Speaker 7: when the yield curve is is unverted.
Speaker 2: Then what's the dynamic of a disinverting yield curve? The
Speaker 2: fact is through August we've seen massive twos ten disinversion.
Speaker 7: Right for twos ten's absolutely right, Tom. You know, I
Speaker 7: think a lot of investors who have increasingly been going
Speaker 7: into money market funds are not really comparing the tenure
Speaker 7: yield to the two year yield these days. They're really
Speaker 7: comparing the tenure yield to what they can get in
Speaker 7: a money market fund. And that yield curve is still
Speaker 7: extraordinarily inverted.
Speaker 4: So you're right tooth tens. Yeah, not so much anymore, Matt.
Speaker 2: Thanks to the clinic. Matt hornback with a brief there,
Speaker 2: Morgan Stanley Global. First of all, after thoughts and orientation
Speaker 2: today school to big Big, I mean you know, these
Speaker 2: are huge, huge moments. Then we got like a whole
Speaker 2: bunch of economic data, Thank for Job's day. None of
Speaker 2: it matters because then you know, we get to the debate. Yeah,
Speaker 2: joining us now surveillance debate correspondent host of The Big Take,
Speaker 2: David Gurra joins, this orientation matters.
Speaker 1: I should say I've been told that there for it.
Speaker 2: The ice cream truck. The ice cream truck is wheeled
Speaker 2: up in front of the school. What a con job, David,
Speaker 2: I got to ask you about what we witnessed over
Speaker 2: the weekend. I don't buy it for a minute. At
Speaker 2: the debate, everyone helping Trump, everyone helping Harris is going
Speaker 2: to say America doesn't care about foreign policy? Am I
Speaker 2: off the mark?
Speaker 1: Well, I think that it's something you don't hear a
Speaker 1: lot about on the campaign trail traditionally. But what we
Speaker 1: had happen over the weekend is so tragic and heartbreaking
Speaker 1: and obviously kickstarted a fresh round of protests in Israel.
Speaker 1: It's something that's going to be front and center on
Speaker 1: everyone's mind this week and leading into the debate next week.
Speaker 1: So I suspect that they're going to be asked about it.
Speaker 1: We've already heard from former President Trump on social media
Speaker 1: his take on sort of what led to that moment
Speaker 1: and what would have been different if he had in
Speaker 1: the White House. So I think that they'll be asked,
Speaker 1: But I think that we keep seeing these things that
Speaker 1: aren't customarily part of campaigns percolaid up foreign policy. I
Speaker 1: would say this time around A certainly liaks.
Speaker 2: Does President Trump have a special relationship with mister net Yea.
Speaker 1: They get along very well and they have historically, although
Speaker 1: there was a breach in that relationship at the end
Speaker 1: of Donald Trump's term in office when Benjamin Yah, who
Speaker 1: waited to uh did not embrace what Donald Trump thought,
Speaker 1: which is that he won the election. Of course he didn't,
Speaker 1: and that soured things. But the two of them have
Speaker 1: known each other for a long time and have a
Speaker 1: familiarity with one another, and I think it's safe to
Speaker 1: say that the former president feels like that relationship between
Speaker 1: the two of them is stronger than the one that
Speaker 1: has been tested, shall we say, between Netan Yahoo and Biden,
Speaker 1: net Yaho and Harris over these last many months.
Speaker 3: David, are we going to have a debate? When is
Speaker 3: it and.
Speaker 1: What should we expect debate? Is going to be on
Speaker 1: Tuesday of next week in Philadelphia at Independence Hall, and
Speaker 1: obviously it's closely watched. We've heard that from both campaigns.
Speaker 1: Of course, there was a lot of fighting over what
Speaker 1: it might look like, how it might take place, if
Speaker 1: it might take place. Both were agreed to it, both
Speaker 1: see it as being important. We had a memo from
Speaker 1: the campaign cheer for the Harris Walls campaign over the
Speaker 1: weekend in which she acknowledged this is going to be
Speaker 1: a really crucial moment for them to try to break
Speaker 1: through to this small sliver of undesided people. I mean,
Speaker 1: this memo from this campaign chair was so fascinating to me.
Speaker 1: So this is from Geno Mally Dillon, who was head
Speaker 1: of the Biden campaign previously, and she had a stunning
Speaker 1: acknowledgement in that memo, which is they see themselves as
Speaker 1: the clear underdogs here, and they also acknowledged the fact
Speaker 1: that this is going to be decided by a very
Speaker 1: razor thin margin. So any moment like this they see
Speaker 1: as an incredibly important opportunity to try to break through
Speaker 1: and get to that small group of people.
Speaker 3: Do we know the is Vice President Harris Is she
Speaker 3: a good debater? Not a good debater is the expectation
Speaker 3: that she got up against a very big presidence like
Speaker 3: former President Trump.
Speaker 1: She's done it before, so we think back to the
Speaker 1: Vice president's debate the last time around, when she comported
Speaker 1: herself very well against Mike Pence, the former vice president
Speaker 1: on the debate stage. Of course, she ran for president
Speaker 1: herself in twenty nineteen, didn't make it to twenty you know,
Speaker 1: but is a former prosecutor, of course, and has a
Speaker 1: very prosecutorial style. And I think that's something that came
Speaker 1: out and was a really interesting contrast in the one
Speaker 1: interview that she's done in recent days with CNN. She
Speaker 1: trying to be the one answering questions, not prosecuting the
Speaker 1: argument that she has, so it'll be interesting to see.
Speaker 1: And of course that contrast is something that's so astonishing.
Speaker 1: And then, Paul, something that really stood out to me
Speaker 1: from that CNA interview was the submission on Vice President
Speaker 1: Harris's part that she's actually never met Donald Trump, never
Speaker 1: been in the same room as him. So that'll be
Speaker 1: a really kind of interesting dynamic to observe and watch
Speaker 1: as they take the stage.
Speaker 2: Where are the rules of the debate right now? Like
Speaker 2: I thought the last time around was hermetically sealed would
Speaker 2: be my sophisticated.
Speaker 1: It seems less hermetically sealed than the CNN one in
Speaker 1: which we were kind of held. The press was held
Speaker 1: in this building five hundred yards away from the room
Speaker 1: in which the debate was taking place. I think we're
Speaker 1: still figuring out what the rules are going to be
Speaker 1: in terms of who's led into the hall. I don't
Speaker 1: think there'll be a boisterous rally type atmosphere. There will
Speaker 1: be kind of a pool of reporters and photographers who
Speaker 1: are going to be.
Speaker 2: To interrupt each other.
Speaker 1: I think that that's still being debated. If you're part
Speaker 1: of the If you but the last army was about
Speaker 1: Mike's and should they have been muted the way in
Speaker 1: which they were in the.
Speaker 3: Last Reporters like yourself, what do you do with this debate?
Speaker 3: What's your plan of action?
Speaker 2: Again?
Speaker 1: The Atlanta one was so strange because we were in
Speaker 1: the Georgia Tech Arena, seated around the concourse watching it
Speaker 1: on the jumbo tron. That was tough for me.
Speaker 2: At the Four Seasons Hotel, you go straight into the
Speaker 2: body of this gorgeous bar. I've never been in the
Speaker 2: Atlanta four seasons where there was it somebody, Oh, hi,
Speaker 2: how are you doing? Great? Great? Great?
Speaker 1: I mean you watched I watched it in the arena
Speaker 1: and then in Philadelphia. We'll see, we'll see what it's like.
Speaker 1: But I was in this, I was in the room
Speaker 1: and then down on the spin floor afterward. I think
Speaker 1: that'll be sort of the same trajectory.
Speaker 2: And your plans for the big take into September into
Speaker 2: Q four, David.
Speaker 1: Girl, Yeah, we're really going to be starting to draw Obviously.
Speaker 1: We talked about this last week when I was when
Speaker 1: I was filling in for Paul. Labor Day is such
Speaker 1: a catalytic moment during a presidential campaign, things really get
Speaker 1: up and running. We're going to be focusing a lot
Speaker 1: more on politics going forward here, so we'll definitely do
Speaker 1: an episode, at least an episode on that debate, and
Speaker 1: we're going to focus much more on the economic policies
Speaker 1: of both candidates going forward.
Speaker 2: There are you back from summer? I mean, you know,
Speaker 2: I'm back. You know it's great. I'm back.
Speaker 1: Do you have the cooler at the desk across the hall?
Speaker 2: Yeah.
Speaker 3: See that's how the kids do it. They bring the
Speaker 3: lobsters back from Maine, and yeah, you know it's great.
Speaker 2: The girl House orientation is great.
Speaker 1: It's a staggered story on every kid in a different
Speaker 1: school doesn't start till Thursday. Yeah, I'm going to Texas.
Speaker 1: Can I make another shameless plug? Yes, going to Texas
Speaker 1: this weekend for the Text Tribune Festival. I'm gonna interview
Speaker 1: the Treasury Secretary on stage in Austin. So I'll have
Speaker 1: some This will be Janet yelling, yelling for an hour
Speaker 1: on stage in Austin. I'll have some tape of that.
Speaker 1: Maybe I can come in Monday a little bit where
Speaker 1: it's going to be Austin, Austin, Texas.
Speaker 2: Are you just going for some you know, I'll.
Speaker 1: Get some brisket now, sure, there'll be some brisket my Southwest,
Speaker 1: not southes. Now, that would be we would get out
Speaker 1: the headline of that way headline Texas Tribute Festive.
Speaker 2: I think. So it's nice to see you know, nice I.
Speaker 3: Mean coming in, I mean are you tomorrow maybe?
Speaker 2: Yes, she will be here tomorrow.
Speaker 1: John answers unequivocally yes.
Speaker 2: Joining us.
Speaker 8: We need more seats in here.
Speaker 2: Surveillance Congestion correspondent for those of your across the nation
Speaker 2: in Boston and ninety pricing not here. I mean, John Tucker,
Speaker 2: come on, it's late related. We're supposed to be deep
Speaker 2: into congestion pricing. Is it dead?
Speaker 8: Well, let's put it this way. It's on hold. It
Speaker 8: could be on hold temporarily, it could be on hold permanently.
Speaker 8: But I also said, say the Governor Hokol who put
Speaker 8: it on hold, either temporarily or permanently. She's taking a
Speaker 8: lot of flak for any number of things. Democrat.
Speaker 3: That's a lot of money that was gonna be.
Speaker 8: It's over billion dollars a year in lost revenue.
Speaker 2: Have they cut different projects.
Speaker 1: In Paris of all these stations right, and I think
Speaker 1: a lot of subway station repairs have been on it.
Speaker 8: That's a lot of You're a ferryman.
Speaker 1: I know you take the ferry, so I will do.
Speaker 8: I can't to repair those subway staates.
Speaker 2: David Gurr the big take, David Gura at the debate.
Speaker 2: Look for college there, John Tucker. Finally, in the crack
Speaker 2: of nine fifty five, you daily look, Well, it's the
Speaker 2: Lisa Matteo hour. Where in God's name have you been? Tucker?
Speaker 2: The shadow of Lisa Matteo and doing the newspapers.
Speaker 6: Go oh, all right, the workforce is changing this year. Okay,
Speaker 6: how gen Z workers expected to out and our baby
Speaker 6: boomers in the US workforce? Why is that an issue?
Speaker 6: Because the bosses don't know how to work with them?
Speaker 6: So gen Z born between nineteen ninety seven twenty twelve,
Speaker 6: just to give you that idea for those out there,
Speaker 6: So a lot of them enter the workforce remotely, so
Speaker 6: they didn't learn those workplace norms, all those communications. I
Speaker 6: So now the Wall Street Journal is saying that companies
Speaker 6: are doing things like mentorships trying to help them. They're
Speaker 6: giving them guidance how to communicate. They're even offering on
Speaker 6: site therapists to talk with them and help them through
Speaker 6: this time as they start to go back to the therapist.
Speaker 6: On site therapists who for these gen Z workers who
Speaker 6: are now going to be more outnumber the baby boomers
Speaker 6: in the workforce.
Speaker 2: How old is gen Z Roughly?
Speaker 4: I can't keep them straight.
Speaker 6: Born between nineteen ninety seven and twenty twelve.
Speaker 2: So it's like a summer.
Speaker 4: It's younger than the millennials. Yeah.
Speaker 3: See my first boss on the Pine Webber trading desk,
Speaker 3: in nineteen eighty six, just smack me on the head
Speaker 3: every morning at nine twenty nine, said don't lose money today.
Speaker 7: That was it.
Speaker 5: I did not.
Speaker 3: Yeah, all right, I didn't have a therapist.
Speaker 2: But okay, am I deficient? And that I have zero sympathy?
Speaker 4: Like zero, You're not alone.
Speaker 6: I'll just put it that way.
Speaker 3: Well, we have to adapt, I would say, as managers.
Speaker 6: Shit, if they're going to outnumber the baby members, this
Speaker 6: is going to be your journals. So that's what they're saying,
Speaker 6: you have to dapt because they want more meaning, more mentorship,
Speaker 6: they want a sense of purpose in their workday.
Speaker 4: Okay, my purpose was I had a P and L.
Speaker 3: I had a P and L on my computer screen
Speaker 3: in my trading desk, and if I was positive, that
Speaker 3: was a good day. Was negative is a bad day.
Speaker 2: Can you see mateo in the kitchen now when one
Speaker 2: of the gen Z your studying throwing a pan, she's
Speaker 2: taking the Revere skillets shut up.
Speaker 6: Next, all right, we go from gen Z to jen Alpha.
Speaker 6: They're even younger. So that's fourteen on nnder. Okay, so
Speaker 6: the gens the Alpha, they are into decluttering. They care
Speaker 6: more about the environment, but they also like to spend.
Speaker 6: So this is from Business Insider. Yes, so they're more
Speaker 6: selective though about their spending. So what they spend on,
Speaker 6: for example, I notice it the Sephora spending. I notice that, Yes,
Speaker 6: the younger general is spending a lot more on that,
Speaker 6: so well their parents' money. They're also here's something. They're
Speaker 6: heading to the mall more often, so they like in
Speaker 6: store purchasing rather than the online. So back in the
Speaker 6: day when we I used to head to the mall,
Speaker 6: that was a thing. We kind of lost that. But
Speaker 6: now they're saying, with Jen Alpha, it's starting to come back,
Speaker 6: Jen Alpha.
Speaker 3: Yeah, I've heard that. All I know is during a pandemic, Tom,
Speaker 3: I mean when the whole world was shut down, the
Speaker 3: sept door across the street on Lexington Avenue packed.
Speaker 2: Yes, but I would suggest we need a seamless free
Speaker 2: door dash free September.
Speaker 6: Yes, can we institute I have I've removed the door
Speaker 6: dash app.
Speaker 2: I'm sitting at home with a beverage in my hands, screaming,
Speaker 2: mister Sweeney cut off his children and you will be two.
Speaker 4: Set the example.
Speaker 6: Uh, this next story is from Bloomberg screen Time. Really
Speaker 6: good because you're talking about media and gi struggling with
Speaker 6: how to make money from the streaming live sports, ESPN
Speaker 6: held this meeting. They brought reporters in, so they started
Speaker 6: talking about what they're doing. They're focusing on streaming fantasy
Speaker 6: sports and gambling. So they talked about a couple of things.
Speaker 6: They have this thing called Flagship, they kind of nicknamed it.
Speaker 6: This it's this new service. It's going to integrate ESPN
Speaker 6: fantasy betting platforms on schedules to longs around this time
Speaker 6: last next year. No word on how much good it's
Speaker 6: going to charge. And then Disney, you know about the
Speaker 6: whole thing with venue, the forty three dollars a month thing.
Speaker 6: That's kind of still we're going through a legal list.
Speaker 3: I think, I mean, the courts kind of shut it
Speaker 3: down and it's.
Speaker 2: Real and now's the time, this weekend.
Speaker 6: Exactly next Yeah, so that's what is it they're saying
Speaker 6: on the sports betting. And finally this was in the Telegraph.
Speaker 6: The Titanic deteriorating one hundred and twelve years after its sink.
Speaker 6: You had these underwater robots. They took images of the wreck,
Speaker 6: the railing of the bow the Titanic, you know, popular
Speaker 6: in the movie. Right, that's where Nardocaprio Cape Winslet had
Speaker 6: their first kiss. It's now at the bottom of the sea.
Speaker 6: So it's starting to break.
Speaker 2: It fell off of the boat.
Speaker 6: It fell off of the boat. It's at the bottom.
Speaker 6: That's a huge part of it. And so they're starting
Speaker 6: to see, like the metal structure is starting to be
Speaker 6: eaten away. So, I mean, after one hundred and twelve years,
Speaker 6: it's starting to show its age.
Speaker 3: I guess.
Speaker 2: Wow.
Speaker 4: I mean, I mean spinning.
Speaker 3: I mean nineteen twelve. April fifteenth, nineteen twelve is when
Speaker 3: the Titanic went down.
Speaker 7: Wow.
Speaker 2: There is a small, lovely little park up Broadway almost
Speaker 2: up to Columbia, just a little, tiny, beautifully for the
Speaker 2: City of New York Landscape Park, and it's in honor
Speaker 2: of I believe it was the couple in the movie
Speaker 2: that the Asters or whatever, the older couple, And it's
Speaker 2: just very serene and you can see the whole city
Speaker 2: was shaken by it.
Speaker 3: Yeah, yeah, I mean yeah, you think.
Speaker 2: Of that back then exactly, I mean the movie nineteen
Speaker 2: ninety seven. Can you believe that? Yeah? No, are we talking?
Speaker 2: We're talking like thirty five what every years? Twenty five years?
Speaker 2: I mean there it is, and of course it's Seleek.
Speaker 2: Selene killed it. Highlight of the summer Celine Dion at
Speaker 2: the Paris Olympics.
Speaker 4: Yeah, I mean she nailed it.
Speaker 2: She did. I mean there was all that controversy and
Speaker 2: all that, and Selene was rock solid. This is the
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