WEBVTT - Bloomberg Businessweek Weekend: May 9th, 2025 (Podcast) 0:00:02.759 --> 0:00:07.240 Bloomberg Audio Studios, Podcasts, radio News. 0:00:08.640 --> 0:00:13.000 This is Bloomberg Business Week Daily reporting from the magazine 0:00:13.000 --> 0:00:17.599 that helps global leaders stay ahead with insight on the people, companies, 0:00:17.640 --> 0:00:22.520 and trends shaping today's complex economy. Plus global business, finance 0:00:22.560 --> 0:00:25.880 and tech news as it happens. The Bloomberg Business Week 0:00:25.960 --> 0:00:31.320 Daily Podcast with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:32.120 --> 0:00:35.080 Hi, everyone, welcome to the Bloomberg Business Week Weekend Podcast. 0:00:35.360 --> 0:00:38.720 Well our backdrop this week a special program as we 0:00:38.800 --> 0:00:41.080 bring you highlights from our coverage at the annual Milkin 0:00:41.159 --> 0:00:44.960 Institute Global Conference held in Beverly Hills, California. It's now 0:00:45.080 --> 0:00:47.400 in its twenty eighth year. Tim is out this week, 0:00:47.600 --> 0:00:51.120 but with Mena's place is Bloomberg TV anchor Romaine Bostk. 0:00:51.520 --> 0:00:53.880 Yeah, and the Milk and Global Conference is a gathering 0:00:53.960 --> 0:00:57.640 of individuals with a capital power and influence to change 0:00:57.640 --> 0:01:00.360 the world. So for the next two hours, we're going 0:01:00.440 --> 0:01:02.760 to speak with some of those who attended and who 0:01:02.760 --> 0:01:06.640 participated in panels on perhaps the biggest talks of the town, 0:01:07.000 --> 0:01:10.560 global trade and tariffs. And then we get to the 0:01:10.560 --> 0:01:14.279 flip side, where investors are finding opportunities everything from private 0:01:14.319 --> 0:01:16.160 credit to artificial intelligence. 0:01:16.240 --> 0:01:19.640 I have to say, Romain, it felt pretty optimistic, but 0:01:19.800 --> 0:01:23.280 the tower ward came into a lot of conversations. All right, everybody. 0:01:23.319 --> 0:01:25.280 We were also there. Keep in mind just ahead of 0:01:25.319 --> 0:01:28.080 the Federal Reserve decision to leave rates unchange yet again, 0:01:28.640 --> 0:01:31.840 even as President Trump strongly urges Fetcher J. Powell and 0:01:31.959 --> 0:01:35.160 Company to lower interest rates. For the latest. 0:01:34.880 --> 0:01:37.000 Economic news and all about the. 0:01:36.920 --> 0:01:39.560 Fed decision, head over to Bloomberg dot com or head 0:01:39.560 --> 0:01:40.760 to the Bloomberg terminal. 0:01:40.640 --> 0:01:42.400 And we had a lot of great conversations. But one 0:01:42.440 --> 0:01:45.240 of the big highlights was a conversation about the impact 0:01:45.280 --> 0:01:48.480 of tariffs on the global markets and how to manage 0:01:48.560 --> 0:01:51.800 that volatility. That conversation was with one of the biggest 0:01:51.880 --> 0:01:55.840 leaders in investment management, Pimco. It manages over two trillion 0:01:55.880 --> 0:01:58.120 dollars in assets, and we caught up with the CEO, 0:01:58.520 --> 0:01:59.200 Mani Romana. 0:01:59.640 --> 0:02:04.440 I think people had made the assumption that they'd be 0:02:04.480 --> 0:02:08.079 a very quick resolution to the tariff question, and the 0:02:08.120 --> 0:02:10.880 reality is there's a lot we don't know, but that 0:02:11.200 --> 0:02:13.520 tariff are going to be high, and that we're going 0:02:13.560 --> 0:02:16.000 to have to deal with it for a long time, 0:02:16.760 --> 0:02:20.120 and that will need to readdress our thinking both in 0:02:20.200 --> 0:02:22.600 terms of economic growth but also inflation. 0:02:23.000 --> 0:02:25.800 Can you make that change now, meaning like when you 0:02:25.840 --> 0:02:28.400 have to factor in what economic growth will be, what 0:02:28.480 --> 0:02:31.040 the impact of tariff's will be, even though we don't know, 0:02:31.520 --> 0:02:33.399 how do you make that pivot now? 0:02:33.560 --> 0:02:35.120 I think you do scenario analysis. 0:02:35.200 --> 0:02:40.320 The big three trading partners are China and Mexico Canada, 0:02:40.440 --> 0:02:44.520 So you basically run simulation and say, if this happened, 0:02:44.800 --> 0:02:48.079 then this will be GDP. If this happened, this will 0:02:48.080 --> 0:02:52.440 be inflation, and acknowledge that we don't know what the 0:02:52.520 --> 0:02:55.000 endgame is going to be the only thing we can 0:02:55.080 --> 0:02:58.840 reasonably say is the overwhelming likelihood is you will have 0:02:58.960 --> 0:03:02.280 high tariff for the foreseeable future, and we'll have to 0:03:02.320 --> 0:03:03.040 deal with this. 0:03:03.160 --> 0:03:05.720 Manny once we know what the terms are. Just some 0:03:05.840 --> 0:03:08.440 of the uncertainty go away and things settle down. But 0:03:08.520 --> 0:03:12.799 it's structurally a different financial dynamic potentially depending on how 0:03:12.840 --> 0:03:13.920 high those tariffs are. 0:03:14.360 --> 0:03:17.200 I think that's right, but I think a number of 0:03:17.520 --> 0:03:21.840 company we'll have to re engineer this supplight chain and 0:03:22.040 --> 0:03:26.800 optimize the production costs and the transfer pricing based on 0:03:27.400 --> 0:03:31.080 what the tariff will be. And I think that changing 0:03:31.120 --> 0:03:34.760 supply chain may not be as easy as what you 0:03:34.840 --> 0:03:37.200 make it to be. For us, we look at a 0:03:37.240 --> 0:03:41.480 set of macro parameters and optimize our portfolio and decide 0:03:41.640 --> 0:03:45.720 what we think is attractive in terms of asset and 0:03:46.400 --> 0:03:48.119 buy them at the best possible price. 0:03:47.960 --> 0:03:49.680 The ones I mean for investors, do they just kind 0:03:49.680 --> 0:03:53.119 of stay put waiting for everything to settle, or are 0:03:53.160 --> 0:03:57.080 they starting to make those bets assuming it is going 0:03:57.160 --> 0:03:59.000 to be very different. Tell us a little bit about 0:03:59.000 --> 0:04:00.920 what you are seeing in terms of at the time. 0:04:01.400 --> 0:04:05.080 I think you've seen enormous volatility in the equity market, 0:04:05.400 --> 0:04:09.000 and some are I would say with surprise that the 0:04:09.040 --> 0:04:13.480 equity market has bounced back to the Liberation Day level. 0:04:13.520 --> 0:04:16.080 But you've seen clearly a move to cash. 0:04:16.720 --> 0:04:19.880 All world, which is the bond world, has been pretty 0:04:19.920 --> 0:04:25.720 much unaffected. And my partner Dan Iverson has to say, 0:04:25.839 --> 0:04:28.719 where you look at the yell on the portfolio of 0:04:28.839 --> 0:04:31.960 bonds says six percent, six and a half percent, it's 0:04:32.000 --> 0:04:35.520 a very good predictor of what your return will be 0:04:36.040 --> 0:04:37.320 over the next five years. 0:04:37.680 --> 0:04:40.000 So if you want to own bones, you're. 0:04:39.880 --> 0:04:43.200 Gonna make six and a half percent, give or take 0:04:43.680 --> 0:04:44.799 over the next five years. 0:04:44.800 --> 0:04:47.400 How are you going to get there a lot of uncertainty, 0:04:47.440 --> 0:04:47.880 and that's. 0:04:47.720 --> 0:04:49.800 What I'm curious is about the volatility. And I mean 0:04:49.800 --> 0:04:51.760 you're referring to your CIO. I mean I thought an 0:04:51.760 --> 0:04:53.520 interview where you actual talked about how he was really 0:04:53.520 --> 0:04:56.159 embracing that volatility to a certain extent. 0:04:56.960 --> 0:04:58.279 There's too competent to it. 0:04:58.720 --> 0:05:01.640 What we like about volatil is the fact that it 0:05:01.720 --> 0:05:06.800 will provide investment opportunity and a source of alifi in 0:05:06.880 --> 0:05:10.599 terms of trading different part of the curve, but also 0:05:11.200 --> 0:05:15.320 different products and to move away from the US and 0:05:15.400 --> 0:05:19.680 find opportunity another part of the world. So you can 0:05:20.360 --> 0:05:23.560 always buy US asset, but you can also buy non 0:05:23.720 --> 0:05:25.000 US asset as a way to. 0:05:24.920 --> 0:05:27.680 Get duration and hedge them back into dollars. 0:05:27.880 --> 0:05:33.280 So, for example, we like Australian duration Australia as a 0:05:33.360 --> 0:05:37.279 dry Robert Academy. We like Australian bonds, but we hedge 0:05:37.320 --> 0:05:38.360 them back in two dollars. 0:05:38.800 --> 0:05:41.159 That's the way to add OURPA to the portfolio. 0:05:41.560 --> 0:05:46.320 How complicated is it to do that when there's also 0:05:46.440 --> 0:05:48.640 a ton of volatility in the FC space and no 0:05:48.680 --> 0:05:50.360 one seems to know where the dollars might be. 0:05:50.400 --> 0:05:53.000 You may wonder what the two thousand people. We have 0:05:53.080 --> 0:05:55.960 a new public school, that's what they do. You know, 0:05:56.000 --> 0:05:58.840 we could deal with that. Just about that. We can 0:05:58.920 --> 0:05:59.320 deal with that. 0:06:00.000 --> 0:06:04.440 At US Secretary Treasury Scott Besson obviously really kicking off 0:06:04.440 --> 0:06:06.479 milk and on Monday, and he talks about the importance 0:06:06.520 --> 0:06:09.279 of watching the ten year Do you agree in terms 0:06:09.320 --> 0:06:10.840 of US treasuries. 0:06:11.040 --> 0:06:13.279 The cost of boring is very important? And I think 0:06:13.440 --> 0:06:17.320 I will answer this in twofold one. The US dollar 0:06:17.440 --> 0:06:20.600 as a reserve currency is really important and the ten 0:06:20.680 --> 0:06:23.920 year bond is in a way the barometer for the 0:06:23.920 --> 0:06:28.440 financial health of the world Academy, so it is really important. Now, 0:06:28.640 --> 0:06:30.279 I would say you look at the whole year Cove, 0:06:30.680 --> 0:06:34.200 you look at the short end, the ten year, the 0:06:34.279 --> 0:06:38.200 thirty year. You think also about credit spread, they're very tight, 0:06:38.680 --> 0:06:41.360 and you think about all of this parameter and try 0:06:41.400 --> 0:06:44.320 to assess what's to come and how you're going to 0:06:44.400 --> 0:06:44.920 deal with it. 0:06:45.240 --> 0:06:49.279 Mannie, one thing I'm curious about, and bringing up Secretary Bessett, 0:06:49.839 --> 0:06:53.720 what is the voice that you listen to most and 0:06:53.839 --> 0:06:57.960 trying to determine ultimately what happens in the US, especially 0:06:58.000 --> 0:07:00.520 when it comes to its financial system. You know, it's 0:07:00.520 --> 0:07:04.360 been the place the world's safe haven, right and. 0:07:04.240 --> 0:07:06.479 It will remain the place of safe handy. 0:07:06.520 --> 0:07:07.919 We're so sure, why? 0:07:08.279 --> 0:07:09.360 Well, think about it. 0:07:10.000 --> 0:07:13.760 The US dollar is the reserve currency, but it's also 0:07:14.320 --> 0:07:17.160 the most liquid treasury market in the world. 0:07:17.600 --> 0:07:19.000 About an enormous factor. 0:07:19.640 --> 0:07:23.000 And yes, you know, you can make a reasonable argument 0:07:23.560 --> 0:07:27.600 that the dollar is slightly expensive and that you may 0:07:27.640 --> 0:07:30.840 want to diversify from the dollar to other currency, but 0:07:30.960 --> 0:07:34.080 it doesn't mean, it does not mean that the dollar 0:07:34.800 --> 0:07:38.280 loses its status, and I think it's very important to 0:07:38.320 --> 0:07:39.040 keep that in mind. 0:07:39.280 --> 0:07:43.160 There's no other reserve currency, there's no other place to. 0:07:43.200 --> 0:07:46.440 Move trillions and trillions of dollars away from the dollar, 0:07:46.680 --> 0:07:47.560 and it is what it is. 0:07:47.760 --> 0:07:50.840 Do you have faith in the Treasury Secretary to do 0:07:50.920 --> 0:07:53.560 the right thing or at least get the president's ear 0:07:53.800 --> 0:07:55.680 on doing the right thing, because he has said some 0:07:55.800 --> 0:07:58.800 things in regards to the fad the Treasury secretary. 0:07:58.800 --> 0:08:01.560 Even so, I'm just curre is do you have faith? 0:08:03.160 --> 0:08:06.960 I think the wonderful thing about financial markets is that 0:08:07.000 --> 0:08:10.760 they're efficient and so they'll tell them and that the market. 0:08:10.520 --> 0:08:12.080 Reacts to policy. 0:08:12.360 --> 0:08:17.320 And when the market doesn't like either policies or a tweet, 0:08:17.720 --> 0:08:20.640 the market react in such a way that people need 0:08:20.680 --> 0:08:25.080 to adjust the cost of action. The market wants the 0:08:25.080 --> 0:08:28.320 FED to be independent, and I think has voted very 0:08:28.320 --> 0:08:32.200 strongly about that, and I think that dictates some of 0:08:32.240 --> 0:08:35.320 the choices and some of the noise around all of this. 0:08:35.520 --> 0:08:37.520 And you know, it's a good thing. Markets are there. 0:08:37.440 --> 0:08:41.199 To reflect, to reflect supply and demand and also reaction 0:08:41.360 --> 0:08:42.520 to event in the world, and. 0:08:42.480 --> 0:08:44.600 We saw that play out in a big way in April. 0:08:45.080 --> 0:08:47.520 One side of that, though, basically to your comments about 0:08:47.520 --> 0:08:50.480 there kind of this being the most liquid market, this 0:08:50.559 --> 0:08:52.600 is kind of the reserve currency, and that's not going 0:08:52.679 --> 0:08:55.880 to end will lessen to a degree because when we 0:08:55.880 --> 0:08:58.480 look at our treasury market and we think about how 0:08:58.480 --> 0:09:02.480 many global investors hold our bonds, all the rumors that 0:09:03.080 --> 0:09:06.960 maybe certain nations might be willing to weaponize their holdings 0:09:07.040 --> 0:09:10.200 if the dispute with the US over trade escalates, does 0:09:10.280 --> 0:09:10.920 that concern you? 0:09:12.320 --> 0:09:14.400 You know, there's no there's no free launch. 0:09:14.600 --> 0:09:17.520 The reason why people own US dollar is because they 0:09:17.640 --> 0:09:21.160 like to own US dollar asset. There is a very 0:09:21.200 --> 0:09:26.080 strong case for American exceptionalism. The fact that the financial 0:09:26.120 --> 0:09:28.920 systems are very liquid and very well run, and that 0:09:29.000 --> 0:09:33.320 if you, for example, a Japanese investor, where there's about 0:09:33.320 --> 0:09:37.960 a trillion dollars of US debt held by Japanese institution. 0:09:38.600 --> 0:09:40.920 It's a good place to be even hedge back in yen. 0:09:41.440 --> 0:09:46.440 And I think that's that's really an important fact to 0:09:46.600 --> 0:09:50.920 remember in terms of the flow of fund and who 0:09:50.960 --> 0:09:53.559 needs to put money aware that is. 0:09:53.520 --> 0:09:55.679 The treasury market healthy right now? 0:09:55.840 --> 0:09:56.280 Totally? 0:09:56.679 --> 0:09:58.360 You do not You weren't concerned. 0:09:58.080 --> 0:10:00.640 At all about what transpired that first we to April, 0:10:01.480 --> 0:10:03.480 about the potential gum up in the system or that 0:10:03.559 --> 0:10:05.360 mismatch between buyers and sellers. 0:10:05.480 --> 0:10:09.760 No. We On the contrary, I think we've seen very 0:10:09.880 --> 0:10:14.040 liquid market voice in treasury and in credits, and to 0:10:14.080 --> 0:10:19.600 be honest, yeah, you know, markets have been remarkably well behaved. 0:10:19.800 --> 0:10:23.160 We had a couple of difficult days during COVID before 0:10:23.160 --> 0:10:27.200 they FED intervened, but it's been very with sailing since. 0:10:27.520 --> 0:10:31.680 And you know, the markets offer plenty of opportunity to 0:10:31.760 --> 0:10:36.640 change your mind. One of the good contribution have been 0:10:36.679 --> 0:10:40.360 ETF where ETF have a lot people like us to 0:10:40.400 --> 0:10:43.720 do portfolio trade, rebalance or book and to use this 0:10:43.880 --> 0:10:48.760 liquidity to move assets around. And I would really and 0:10:48.880 --> 0:10:51.520 fifacts this the markets are quite liquid. 0:10:52.080 --> 0:10:54.200 I promise not all my questions are pessimistic, but I 0:10:54.200 --> 0:10:57.840 do have one with the guard I mean, you had 0:10:57.840 --> 0:10:59.920 a market, they had to deal with the trade issues 0:11:00.640 --> 0:11:03.160 that hasn't been resolved, but they certainly made some degree 0:11:03.160 --> 0:11:05.640 a piece with where we are. There's now a big 0:11:05.640 --> 0:11:08.480 budget battle that's about to take place in Washington, and 0:11:08.559 --> 0:11:12.319 I do wonder as the lead leader of the biggest 0:11:12.320 --> 0:11:17.360 bond company, bon Investler out there is there concern that 0:11:17.720 --> 0:11:21.000 our fiscal deficit and the potential remedies that are being 0:11:21.000 --> 0:11:24.480 discussed in Congress could exasperate the situation in the fixed 0:11:24.480 --> 0:11:25.120 income market. 0:11:26.400 --> 0:11:30.800 That's the wonder of being the reserve currency. Everything else 0:11:30.880 --> 0:11:35.079 being equal, you could run a slightly higher deficit than 0:11:35.120 --> 0:11:39.200 you would otherwise. And I think that, of course, people 0:11:39.280 --> 0:11:41.959 will look at the amount of deficit and you know, 0:11:42.280 --> 0:11:45.480 it is overwhelmingly likely that the deficit is. 0:11:45.400 --> 0:11:46.440 Not going to get reduced. 0:11:47.000 --> 0:11:51.960 But once again, would you rather own very high quality 0:11:52.000 --> 0:11:57.480 assets in the US or would you rather own bonds 0:11:57.480 --> 0:12:00.120 in southern Europe? You can decide which one you you 0:12:00.160 --> 0:12:03.280 would rather own. That's the reality. The reality is you 0:12:03.360 --> 0:12:05.360 need to invest somewhere so. 0:12:05.320 --> 0:12:08.079 You're not worried about It's a lot of debt. 0:12:08.440 --> 0:12:09.520 It's a physical situation. 0:12:09.600 --> 0:12:11.000 It's been a lot of debt for a long time, 0:12:11.040 --> 0:12:12.520 but now we're at levels we haven't seen. 0:12:13.040 --> 0:12:14.319 Should we just accept it? 0:12:15.080 --> 0:12:15.160 No? 0:12:15.280 --> 0:12:18.240 I think I would reply with a quote that I 0:12:18.320 --> 0:12:23.120 heard Jeannett Yellen gave in a private conversation. She said, 0:12:23.400 --> 0:12:26.280 all we can say is it's not a problem until 0:12:26.280 --> 0:12:30.120 it becomes a problem. And so it's a deeper meaning 0:12:30.200 --> 0:12:33.920 maybe that it appears like there's a tipping point, which 0:12:34.000 --> 0:12:36.839 is very hard to guess where all of a. 0:12:36.800 --> 0:12:39.720 Sudden, either because the issue. 0:12:39.400 --> 0:12:43.720 Will lose credibility or because the policy doesn't make sense 0:12:43.760 --> 0:12:46.959 to market participant people all of a sudden don't want 0:12:46.960 --> 0:12:47.720 to be the margin. 0:12:47.559 --> 0:12:51.280 Old buyer our Thanks to filmco CEO Many Roman. 0:12:51.280 --> 0:12:53.920 Coming out much more from Milk in twenty twenty five. 0:12:54.240 --> 0:12:55.440 This is Bloomberg. 0:12:57.960 --> 0:13:01.319 You were listening to the Bloomberg Business Week Daily podcast. 0:13:01.520 --> 0:13:04.640 Catch us live weekday afternoons from two to five pm 0:13:04.720 --> 0:13:07.720 Eastern Listen on Apple CarPlay and Android Auto with the 0:13:07.720 --> 0:13:11.800 Bloomberg Business app, or watch us live on YouTube. 0:13:12.000 --> 0:13:14.400 I'm Carol Master along with Romaine Bostik in for Tim 0:13:14.480 --> 0:13:16.800 this week with a special edition of the Weekend Edition 0:13:16.800 --> 0:13:19.400 of Bloomberg Business Week. We are bringing you all the 0:13:19.440 --> 0:13:21.840 highlights from our coverage of the twenty eighth annual Milk 0:13:21.840 --> 0:13:24.480 and Institute Global Conference in Beverly. Hill's gotta say a 0:13:24.480 --> 0:13:26.319 lot of energy, A lot of people were here. 0:13:26.679 --> 0:13:31.680 A big theme this week cautious optimism. Robin Grew is 0:13:31.840 --> 0:13:34.400 chief executive officer at Man Group, one of the world's 0:13:34.480 --> 0:13:38.120 largest publicly traded edge fund companies, managing over one hundred 0:13:38.160 --> 0:13:41.520 and sixty eight billion dollars in client assets. She says, 0:13:42.040 --> 0:13:46.400 despite recent market of volatility, there's still plenty of investment opportunity. 0:13:46.679 --> 0:13:49.640 Volatility is a place where we need to lean in 0:13:49.720 --> 0:13:52.840 to do me. We are in volatile markets. We're not 0:13:52.920 --> 0:13:55.679 going back to a benign market environment, and so in 0:13:55.679 --> 0:13:59.880 that space, we have to be prepared to create diversify 0:14:00.520 --> 0:14:04.600 content and capability that's able to navigate these markets to 0:14:04.679 --> 0:14:08.920 provide outsized returns or alpha returns to our investments. 0:14:09.360 --> 0:14:11.880 How do you do that though, because when you look 0:14:11.880 --> 0:14:13.960 at the strategies that Man Group has a lot of 0:14:14.080 --> 0:14:18.319 systemic strategy, systematic strategies, a lot of trend following strategies 0:14:18.760 --> 0:14:21.040 that we've seen over the last few weeks and months. 0:14:21.240 --> 0:14:25.520 Does not necessarily perform optimally when there is so much 0:14:25.560 --> 0:14:27.440 misdirection going on in the market. 0:14:27.360 --> 0:14:30.160 Totally, totally, and they're not supposed to. I think that's 0:14:30.200 --> 0:14:32.000 the thing that we need to be mindful of. In 0:14:32.040 --> 0:14:35.760 a diversified portfolio, you're going to have assets and capabilities 0:14:35.800 --> 0:14:39.720 and strategies that do perform. And we've seen that in credit, 0:14:40.080 --> 0:14:44.560 we've seen it in great active equity management, we've seen 0:14:44.560 --> 0:14:47.440 it in multi strats. But you don't see it in 0:14:47.480 --> 0:14:51.720 trending because that whip saw and whiplashing behavior doesn't work 0:14:51.760 --> 0:14:54.160 for it. But that's why when clients are talking to 0:14:54.240 --> 0:14:57.560 us about how do they position their portfolios, they're looking 0:14:57.640 --> 0:14:59.920 at the things that will operate in markets as we're seeing, 0:15:00.880 --> 0:15:04.400 and they're also thinking about defensive alpha. And what we 0:15:04.520 --> 0:15:06.920 do know and what we've had history around, is that 0:15:07.120 --> 0:15:10.400 when you have decades of experience in momentum and trend 0:15:10.760 --> 0:15:14.760 they operate well when this volatility slows down and then 0:15:14.800 --> 0:15:15.880 you can find the trends again. 0:15:16.000 --> 0:15:18.640 Do you expect that volatility to slow down anytime soon? 0:15:18.920 --> 0:15:20.960 I think that volatility is going to be here for 0:15:21.160 --> 0:15:24.800 some time. It's whether the volatility is accompanied by whiplash 0:15:24.880 --> 0:15:28.640 behavior and that's what the markets are looking for, that consistency, 0:15:28.760 --> 0:15:32.160 something that is predictable and capable of being predicted. But 0:15:32.320 --> 0:15:36.360 there's no doubt that the opportunity sets across markets are 0:15:36.480 --> 0:15:39.520 really interesting right now. One hundred days ago, you might 0:15:39.560 --> 0:15:42.120 not have thought about Europe as a growth opportunity. We're 0:15:42.160 --> 0:15:44.320 looking at Asia with a very different set of lenses. 0:15:44.800 --> 0:15:50.120 We're seeing real opportunities for active and alternative investments. And 0:15:50.200 --> 0:15:54.360 it's about staying calm through this time as well. But volatility, 0:15:54.360 --> 0:15:56.080 will it be here for some time? I think so. 0:15:56.360 --> 0:16:00.880 Dispersion yep, I think so. But whiplash hope not forever. 0:16:01.040 --> 0:16:02.680 I don't loo if you got a chance to hear 0:16:02.720 --> 0:16:04.720 what Scott Besson had to say at one of the 0:16:04.800 --> 0:16:07.360 milk and panels here, but there was a really interesting 0:16:07.400 --> 0:16:09.680 moment where he really turned to the audience and looked 0:16:09.680 --> 0:16:13.040 straight at them and said, we're trying to make everything 0:16:13.120 --> 0:16:15.960 more appealing for you, meaning for the investors out there 0:16:16.000 --> 0:16:18.720 that are in this room. Do you find any comfort 0:16:18.920 --> 0:16:20.680 in hearing those words out of Scott Besson? 0:16:20.960 --> 0:16:26.720 Absolutely, we want this biggest deepest capital market to function really, 0:16:26.760 --> 0:16:27.280 really well. 0:16:27.800 --> 0:16:29.680 We just also good. 0:16:29.480 --> 0:16:31.760 To work by our clients to go and seek out 0:16:31.800 --> 0:16:36.000 alpha wherever that may be that outperforms across all markets. 0:16:36.120 --> 0:16:39.440 That's why we trade eight hundred plus markets in the world. 0:16:39.560 --> 0:16:41.840 That's our job to do that, and we do that 0:16:42.160 --> 0:16:45.800 for real individuals who have saved all their lives, who 0:16:45.960 --> 0:16:48.280 put into their pension pots, be their four one ks 0:16:48.360 --> 0:16:50.840 or they are raised. But yes, I think it's a 0:16:50.880 --> 0:16:54.800 tremendous statement that we have Scott Besson talking to us 0:16:54.840 --> 0:16:57.600 about actually being supportive of markets. I think that's a 0:16:57.640 --> 0:16:58.000 great thing. 0:16:58.200 --> 0:16:59.360 Is that too little, too late? 0:16:59.440 --> 0:17:01.680 This is a room full of people from around the world, 0:17:02.040 --> 0:17:04.840 and you know there's been a reallocation of capital, or 0:17:04.840 --> 0:17:08.160 at least a rethink of whether to reallocate capital away 0:17:08.160 --> 0:17:11.080 from the US to Europe for example, or even to 0:17:11.119 --> 0:17:11.960 other parts of the world. 0:17:12.680 --> 0:17:13.440 To not too late. 0:17:13.640 --> 0:17:16.000 I don't think so. I think we all look to 0:17:16.080 --> 0:17:19.920 the quality of the US as an investible space. Again, 0:17:20.280 --> 0:17:23.439 it's the opportunity set that's out there. Is it a 0:17:23.480 --> 0:17:26.440 bad thing that there's competition. Is there's a bad thing 0:17:26.480 --> 0:17:29.560 that there's growth in Europe or an opportunity set in 0:17:29.600 --> 0:17:30.880 Asia that's opening up. 0:17:31.080 --> 0:17:31.800 I don't think so. 0:17:32.359 --> 0:17:33.679 In the same way as I don't think it's a 0:17:33.720 --> 0:17:36.720 bad thing that we're seeing the opportunities in private. 0:17:36.440 --> 0:17:37.760 Credit open up. 0:17:38.200 --> 0:17:41.120 So I think there's plenty for us to keep our 0:17:41.680 --> 0:17:44.840 very detailed focus on. But no, I don't think it's 0:17:44.840 --> 0:17:45.560 too little, too late. 0:17:45.840 --> 0:17:48.760 How do you keep your team, the folks who work 0:17:48.840 --> 0:17:52.240 under you, not just motivated, but to get them to 0:17:52.320 --> 0:17:57.200 understand what the long term goal is in an environment 0:17:57.200 --> 0:17:59.840 where we are so focused on these minute by minute, 0:18:00.280 --> 0:18:01.840 short term disruptions. 0:18:02.040 --> 0:18:02.480 I think the. 0:18:02.440 --> 0:18:05.000 Reality is you have to be you have to have 0:18:05.080 --> 0:18:07.879 confidence in the strategies you're running, and you have to 0:18:07.960 --> 0:18:10.440 know that those strategies are performing the way they should 0:18:10.440 --> 0:18:13.200 do in the market environments you're in. So you keep 0:18:13.240 --> 0:18:16.280 that focus at man group. If we have strategies that 0:18:16.320 --> 0:18:18.199 aren't working in a period of time, I don't have 0:18:18.240 --> 0:18:20.040 to go on to the floor and make people feel 0:18:20.200 --> 0:18:20.960 more unhappy. 0:18:21.080 --> 0:18:22.320 They're doing that themselves. 0:18:22.760 --> 0:18:25.560 So for what we do, it's about being sure that 0:18:25.600 --> 0:18:28.320 we're doing the best we can do. We continue to 0:18:28.359 --> 0:18:32.320 be at the cutting edge entrepreneurially of content and product 0:18:32.359 --> 0:18:34.560 and capability that we deliver. 0:18:34.280 --> 0:18:36.400 That to our clients, that we deliver. 0:18:36.160 --> 0:18:39.639 More than just funds or products, even to clients that 0:18:39.680 --> 0:18:43.520 we're delivering the decades of experience we have in AI 0:18:43.920 --> 0:18:46.760 or technology, or we're delivering the nearly twenty years of 0:18:46.800 --> 0:18:49.560 experience we have in our partnership with the Oxford Man 0:18:49.560 --> 0:18:53.960 Institute at Oxford University. It's about keeping people focused on 0:18:54.000 --> 0:18:56.040 the day job. It's about staying calm. 0:18:56.240 --> 0:18:58.720 You mentioned AI, and of course Man Group is probably 0:18:58.720 --> 0:19:01.080 one of the early adopters, least in the finance space 0:19:01.480 --> 0:19:03.119 of AI, and I think we spoke about this at 0:19:03.119 --> 0:19:06.879 Bloomberg at best a few months ago. Does that become 0:19:06.920 --> 0:19:10.359 more critical in times like this having those types of 0:19:10.400 --> 0:19:13.879 capabilities or is it potentially a liability because you're effectively 0:19:13.920 --> 0:19:16.640 talking about I don't know something that's I don't want 0:19:16.640 --> 0:19:19.960 to say it's pre determined, but certainly there's a roadmap 0:19:20.160 --> 0:19:21.960 that's put out when it comes in these models. 0:19:22.160 --> 0:19:22.440 Listen. 0:19:22.640 --> 0:19:25.320 I think AI is a tool. We talked about it before. 0:19:25.960 --> 0:19:29.080 It is a great capability. When I think about generative 0:19:29.080 --> 0:19:32.920 AI and I think about AI agents, it's about deploying those. 0:19:33.000 --> 0:19:37.359 It means we can be better, faster, smarter. Doesn't replace 0:19:37.400 --> 0:19:39.880 the human being, and it doesn't mean that you need 0:19:39.920 --> 0:19:44.440 to ignore the risks that are incumbent in these capabilities too. 0:19:44.880 --> 0:19:45.919 But I do. 0:19:46.040 --> 0:19:47.520 I think that tech is part. 0:19:47.359 --> 0:19:51.200 And past of what the future looks like. Undoubtedly AI 0:19:51.280 --> 0:19:53.919 part of that. Undoubtedly you don't have to look very 0:19:53.960 --> 0:19:57.480 far in this conference to see just the power and 0:19:57.520 --> 0:19:59.679 the capability of these future technologies. 0:20:00.119 --> 0:20:02.240 You think the investment in that writ large, not just 0:20:02.240 --> 0:20:04.919 said Man Group investment in that AI tech that hasn't 0:20:04.960 --> 0:20:07.480 been disrupted at all. There hasn't been a rethink on 0:20:07.520 --> 0:20:09.399 that longer term investment opportunity. 0:20:09.440 --> 0:20:12.280 Else We continue to think that AI and will continue 0:20:12.280 --> 0:20:15.239 to think that this is both being consumed within Man 0:20:15.320 --> 0:20:18.240 Group and within the work we do, but the broader 0:20:18.280 --> 0:20:21.720 reach outs into other industries and other spaces is going 0:20:21.760 --> 0:20:23.240 to be I think transformation. 0:20:23.800 --> 0:20:25.720 You've been on the job for a while now, so 0:20:25.800 --> 0:20:28.520 you're not new, You're more of a veteran now, and 0:20:28.680 --> 0:20:30.879 you're a veteran at a time where this has to 0:20:30.880 --> 0:20:33.199