Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
Speaker 1: Bloomberg Quick Takes Tim Stanovik. We're here every day bringing
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Speaker 1: pm Eastern Time on the Bloomberg Radio or watch us
Speaker 1: on YouTube. Search Bloomberg clovel News. So among our most
Speaker 1: read on the Bloomberg A mass exodus is underway as
Speaker 1: foreign companies from Shell to Dame Lair, Dame LERK. Excuse me, Tim,
Speaker 1: they are running away from Russia. Yeah. This story by
Speaker 1: Stephanie Baker, edited by Ethan Browner, Senior editor at Bloomberg News.
Speaker 1: Ethan joins us now on the phone from New York City.
Speaker 1: Ethan Carroll mentioned some of the companies the list, though
Speaker 1: it continues to go on. It includes payment processors UH
Speaker 1: credit card companies, for example. In addition to that general motors.
Speaker 1: How would you characterize the way that American and multinational
Speaker 1: companies have exited their Russian businesses in recent days. Well,
Speaker 1: it's been absolutely a rush for the exits, so I mean.
Speaker 1: And it's such a specific sort of reversal of what
Speaker 1: happened thirty years ago when the Yo Silva Union fell
Speaker 1: apart and everybody saw an incredible new market of consumers
Speaker 1: and potential h joint ventures on oil and minerals and
Speaker 1: so forth. So there's a huge numbers amount of companies
Speaker 1: that have gone in over these thirty years, and suddenly,
Speaker 1: between the sanctions and their own anger at what's going
Speaker 1: on and their inability to get around swift and other things,
Speaker 1: they are either shutting down or actually abandoning deals that
Speaker 1: they've had. But not every company, as Stephanie points out
Speaker 1: in her piece, Mackenzie and Company was one that really
Speaker 1: caught my eye. The global managing partner took to LinkedIn
Speaker 1: on Sunday to condemn the Russian invasion of Ukraine and
Speaker 1: declare that the firm will no longer do business with
Speaker 1: any government entity in Russia. But the company is not
Speaker 1: pulling out what's the distinction here? Oh? Yes, of course,
Speaker 1: there's an important distinction, and you're quite right. The story
Speaker 1: does note that there are a bunch of companies that
Speaker 1: are trying to sort of keep their head down, shall
Speaker 1: we say, and mckensey is one of them. Obviously, the
Speaker 1: heads of mckensey rejected that this wasn't sufficient, but internally
Speaker 1: and externally they've gotten a lot of complaints. And you
Speaker 1: know that's true of a bunch of other companies too. Um.
Speaker 1: And some companies are more worried about slowing down or
Speaker 1: stomping in Ukraine obviously legitimately worried about their their staff
Speaker 1: and the safety and so forth, but they haven't necessarily
Speaker 1: said anything about what they're doing in Russia. So you're right.
Speaker 1: It is across the board a range of activities, a
Speaker 1: bunch of pulling out, a bunch of stopping, and a
Speaker 1: bunch are sort of holding and watching. How important is
Speaker 1: the Russian market two global companies? You know, Um, it
Speaker 1: looks like it's less important than say Western Europe and
Speaker 1: North America. Um. You know, if you look at sort
Speaker 1: of consumer companies, they typically Russia typically uh takes up
Speaker 1: maybe two, three, four or five of its market. You know,
Speaker 1: I'm looking at to stay Lauder, General Motors, Harley David's
Speaker 1: and those kinds of things. But you know that's not nothing.
Speaker 1: Those are not that's not nothing. Right, And multiple markets
Speaker 1: add up to little pieces of markets all around the
Speaker 1: globe add up to something. What I do wonder, um
Speaker 1: is that you know, ethan, will we see like fingers crossed,
Speaker 1: that this gets resolved sooner rather than later? Will we
Speaker 1: see them companies say Okay, things have calmed down, We're
Speaker 1: going to go back, Because you know, companies the world
Speaker 1: has a very short memory sometimes, especially when there's money
Speaker 1: at stake. So I'm just curious, what's what's the read
Speaker 1: on this? Look, I think you're right to ask that question.
Speaker 1: We can't know. We can't know how critiquous can end.
Speaker 1: We can't know how it will end, right. I mean,
Speaker 1: if it if it were to end in a way
Speaker 1: that many here we're like with putin no longer in
Speaker 1: power or something like that, that would be a whole
Speaker 1: different game. But if it just sort of a deal
Speaker 1: is struck and horrible things have happened, I think you're
Speaker 1: right to ask the question. I have no greater clarity
Speaker 1: than you on who would stay and who would actually leave,
Speaker 1: But I think we have to see ultimately how much
Speaker 1: of a rogue state Russia is deemed to be when
Speaker 1: this is all over. Yeah, that's that's a certainly an
Speaker 1: important thing to keep in mind, Ethan. And one thing
Speaker 1: I do wonder about is is the consumer side of this.
Speaker 1: Companies that are consumer facing, do they face uproar for
Speaker 1: doing business in Russia on the other side of this,
Speaker 1: if if that is indeed the case, if we do
Speaker 1: play this out, and do we see something like what
Speaker 1: we saw in the nineteen eighties with South Africa and apartheid. Yes,
Speaker 1: that's a very good question and not at all impossible,
Speaker 1: because I think that you know, unlike, uh, let's say,
Speaker 1: the way the Saudi's killed Washington Post columnists and anger
Speaker 1: over that. That's one thing, But the idea that like
Speaker 1: South Africa, Although to be honest, this is even worse
Speaker 1: than South Africa in the sense that it is a
Speaker 1: takeover of another sovereign state. Internally, how people handle their
Speaker 1: own issues, of course, or sources of moral outrage. But
Speaker 1: the idea of sort of been imposing your will on
Speaker 1: another country entirely that the world recognized as a legitimate,
Speaker 1: separate country. In a way, it could be worse. Even
Speaker 1: can we liken it to another country invading the United States? Like,
Speaker 1: how do we need to be looking at this as
Speaker 1: global citizens? That is absolutely how we can, Absolutely how
Speaker 1: we can liken it. There's no doubt in our minds
Speaker 1: and the minds of vast majority of people around the world.
Speaker 1: Ukraine is not a legitimate part of Russia, despite historic
Speaker 1: ties and Russian speaking and so forth. This is absolutely
Speaker 1: an invasion by one country of another, utterly from our perspective,
Speaker 1: without justification. Hey, you than just in the last forty
Speaker 1: seconds that we have with you, what's the next thing
Speaker 1: that we need to keep our eye on? What companies
Speaker 1: do we need to watch? What developments do we need
Speaker 1: to be focused on? You know, I think that some
Speaker 1: of the for example, like the French total energies, some
Speaker 1: of the ones that have done less to see whether
Speaker 1: they start to feel the pressure to do more to
Speaker 1: get out because a bunch of companies, I mean, Shell
Speaker 1: and BT have been very clear and about getting out
Speaker 1: and making their statements unambiguous. But I think there's a
Speaker 1: whole bunch of other things like McKinsey, as you mentioned,
Speaker 1: So I think we have to see if this continues,
Speaker 1: what's going to happen to those companies? Ethan Bron, thank
Speaker 1: you so much for finding some time for us. We
Speaker 1: really appreciate it, Senior Editor, Bloomberg News. A story foreign
Speaker 1: companies from Shell to Daimler abandoning Russia. It's a must read,
Speaker 1: an a most read on the Bloomberg terminal. This is
Speaker 1: Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes
Speaker 1: Tim Stinovic on Bloomberg Radio. As we continue to focus
Speaker 1: on the Russian invasion of Ukraine, let's not forget we're
Speaker 1: still globally fighting a health pandemic as well. Each day
Speaker 1: that goes by, there are still more cases, more deaths,
Speaker 1: as well as solutions. So let's get some thoughts on that.
Speaker 1: Dr Kevin Tracy, as President and Chief executive Officer of
Speaker 1: the fine Stein Institutes for Medical Research at Northwell Health.
Speaker 1: He joins us on the phone from Manhasset, New York.
Speaker 1: Dr Tracy, how are you good? Good afternoon, Good afternoon.
Speaker 1: It certainly feels like you know, I I don't want
Speaker 1: to use the term feel because we have so much
Speaker 1: data and we certainly are looking at the data here,
Speaker 1: but it seems to be like, we are in a
Speaker 1: really good spot with cases declining and governors across the
Speaker 1: country removing their mask mandates. Do you agree that it's
Speaker 1: a good idea to remove mass mandates right now? You know,
Speaker 1: it's two years in two March thirteenth. Two years ago
Speaker 1: was when we really started dealing with this in New York.
Speaker 1: And what we hoped for two years ago was sort
Speaker 1: of a three pronged approach right vaccines, treatments, and containment.
Speaker 1: And I think that with the available, widespread availability and
Speaker 1: use of vaccines, we can start to look towards relaxing
Speaker 1: these other measures. Having said that, and we talked about
Speaker 1: we're still in a pandemic, but things certainly in some
Speaker 1: parts of the world certainly feel like they're getting a
Speaker 1: lot better. We feel it here in the United States. Uh,
Speaker 1: certainly here in New York City. Um. We're also learning
Speaker 1: about new treatments increasingly. And I have to say, on
Speaker 1: our planning call, uh this morning, when our producer mentioned
Speaker 1: you were coming on and you want to talk about
Speaker 1: pepsid um as a as a treatment for COVID, we
Speaker 1: were all like, wait, what, so explain this to us. Sure? So, first, Uh,
Speaker 1: it's important to point out to everyone that we're talking
Speaker 1: now about treatment, not vaccines. Vaccines are the foundation upon
Speaker 1: which everything has to start. Vaccines prevent UH death and
Speaker 1: dying from people who get infected with COVID, and that's
Speaker 1: that's the objective. But for patients who get sick despite
Speaker 1: the vaccine, or patients who are not vaccinated here or
Speaker 1: in other countries, perhaps there still is a need for
Speaker 1: treatments and and treatment of the COVID nineteen syndrome has
Speaker 1: to be has to be thought of in two ways. First,
Speaker 1: you can target the virus directly, and that's where the
Speaker 1: drugs which are called anti virals come in. And second,
Speaker 1: you can target the body's reaction to the virus UH.
Speaker 1: And these would be anti inflammatory molecules, molecules that suppressed
Speaker 1: cytokine storm, which which we've come to learn is really
Speaker 1: the problem. The immune system makes molecules called cytokines that
Speaker 1: actually can kill the patient. And this is where decks
Speaker 1: and mesason became part of the standard of therapy because
Speaker 1: it blocks cytokine storm. But from the early days of
Speaker 1: this pandemic in New York, my colleagues and I have
Speaker 1: been exploring the possibility that promotidine, which is the active
Speaker 1: ingredient in pepsi, also can restrain or suppress cytokine storm
Speaker 1: and may also be useful in some cases of COVID,
Speaker 1: and our our newest data points to that being potentially true. Well,
Speaker 1: Dr Tracy, I'm I'm wondering. You know, we've heard so
Speaker 1: much about drugs in development, specifically for treating treating the virus,
Speaker 1: and I'm I'm wondering why you would need something like
Speaker 1: this if there is you know, a packlovid for example,
Speaker 1: available from Visor. So if there's if if the key
Speaker 1: word is if the drug is available, as you said correctly, So,
Speaker 1: if the drug is available and you have access to
Speaker 1: these anti viral drugs that target the virus, by all
Speaker 1: means those are going to be essential, necessary, and useful.
Speaker 1: There will be places in the world. There will be
Speaker 1: places in the United States where those drugs may not
Speaker 1: be available. And now it's interesting to consider the possibility
Speaker 1: that a drug like promotidine, which has been around for
Speaker 1: decades and is essentially pennies on the dose to manufacture
Speaker 1: and distribute and is very very safe. The question is
Speaker 1: if it's effective in a country where potentially millions of
Speaker 1: people can have the disease. If it helps a small
Speaker 1: percentage of millions of people, you're talking about potentially helping many,
Speaker 1: many people. So we just we don't have all the
Speaker 1: scientific answers yet, but we certainly for those reasons one
Speaker 1: and know alright, we're gonna leave it on that note. Hey, listen,
Speaker 1: thank you so much. Dr Kevin Tracy, President and Chief
Speaker 1: executive Officer at Feinstein Institutes for Medical Research at Northwell Health,
Speaker 1: joining us once again on the phone from Inhascant, New York.
Speaker 1: You know, it's just a reminder, Tim, right, and you
Speaker 1: and I talked about it kind of behind the scenes.
Speaker 1: It's just, you know, the medical community finding different ways
Speaker 1: to treat patients who come down with COVID. Hopefully they've
Speaker 1: gotten vaccinated, because that is a big for many people,
Speaker 1: a big thing that is certainly keeps them alive. But
Speaker 1: there's still treatments being developed well. As many doctors have
Speaker 1: told us over the last couple of years, Carol, one
Speaker 1: of the signs of it moving from a pandemic to
Speaker 1: an endemic is learning how to treat it, learning how
Speaker 1: to live with it, and learning how to get past it.
Speaker 1: And that's one thing that we're doing with these different treatments.
Speaker 1: Now you're listening to Bloomberg Business Week with Carol Messer
Speaker 1: and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio. As
Speaker 1: the world opens up increasingly follow the latest COVID variant,
Speaker 1: where are a lot of people headed? Turns out it's
Speaker 1: decentraland and what is decentraland is it? It's the metaverse.
Speaker 1: Joining us now to talk all about it is Cecilia
Speaker 1: Donna Stasio, video game reporter for Bloomberg New She's with
Speaker 1: us now in the Bloomberg Interactive Brokers. Check out her story.
Speaker 1: It's going to be featured in the upcoming issue of
Speaker 1: Bloomberg Business Week magazine. You can read it now on
Speaker 1: the Bloomberg and at Bloomberg dot com Slash business Week.
Speaker 1: Also with us is Joel Webber, editor at Bloomberg Business Week.
Speaker 1: He joins us not in the metaverse, but all four
Speaker 1: of us are here together in real life, Joel, why
Speaker 1: are we not in the metaverse? Unless it is the metaverse?
Speaker 1: But don't exactly. I love it that, you know, we're
Speaker 1: all talking about the metaverse and what it's going to
Speaker 1: be and how it's gonna upend tech and fortunes are
Speaker 1: going to be made and companies are gonna be born
Speaker 1: and die on this thing. And the first place that
Speaker 1: we get to see what it looks like? What are
Speaker 1: people doing there? It's sin right kind of so so cecili,
Speaker 1: let's bring you in. Um why why why is it
Speaker 1: that we could have these grand ambitions for the future
Speaker 1: and yet we just end up gaming. Yeah, it's not unusual.
Speaker 1: A lot of new technologies have been ushered in by gambling,
Speaker 1: by you know, nights nanti one, the year that the
Speaker 1: first PCs were introduced. Video poker was already very popular.
Speaker 1: The Internet was in part ushered in by casinos, even
Speaker 1: cryptocurrency bitcoins. Some of the first applications were gambling. And
Speaker 1: now at the what people say is the dawn of
Speaker 1: the metaverse, we have poker. So tell us what the
Speaker 1: central end like if you go there? I mean, do
Speaker 1: I Am I really going to see a picture of
Speaker 1: Jamie Diamond? You can if you'd like, You talked about
Speaker 1: it yesterday where that happened. Um, so tell us about
Speaker 1: you go in. What's the experience. It's a funny experience
Speaker 1: if you're someone who's played video games, because what does
Speaker 1: Sunderland look like? Is a virtual world in the kind
Speaker 1: of virtual world you might see, you know, on a
Speaker 1: random web browser, and like the early to mid two thousand.
Speaker 1: Thank you. I was reading this story earlier today and
Speaker 1: I said to some colleagues sitting next to me, I'm like, what,
Speaker 1: how is this not Second Life all over again? It
Speaker 1: kind of is. And actually, you know, there are a
Speaker 1: lot of things that Second Life does that to Central
Speaker 1: Land can't do. But the Central Lands big pole is
Speaker 1: the fact that it is to Central lines. It runs
Speaker 1: on the Ethereum technology and um they're selling real estate
Speaker 1: for a lot of money, millions of dollars even what
Speaker 1: do you mean? What do you mean they're selling real
Speaker 1: estate so you can buy a plot of land in
Speaker 1: the virtual world like UM does. Central Games has done
Speaker 1: with their ice poker casinos, and you can bring people
Speaker 1: in and do business there, typically using cryptocurrency. Is that
Speaker 1: numbered negotiable? Maybe ask them and find out. So what
Speaker 1: else can you do there other than you know, play
Speaker 1: a little poker? Sure, so intes Central and there are
Speaker 1: a lot of things that you can do. So you
Speaker 1: can tour you know, a Southeby's art gallery, you can
Speaker 1: um come on Paris, Hilton, you're bearing the lead Paras.
Speaker 1: Hlton performed a conference a uh concert there. I think
Speaker 1: Dead Mouse did to the electronic musician. Um. The there's
Speaker 1: like going to be a Barbatos embassy there soon apparently.
Speaker 1: So people are doing all kinds of things, sort of
Speaker 1: speculating on the metaverse into centraland how do you. Let's
Speaker 1: go to poker though and talk a little bit about
Speaker 1: what people are doing. As you mentioned, it has historically
Speaker 1: helped usher in you know, gaming has helped us or
Speaker 1: in new technologies. UM. The legality of this, it's kind
Speaker 1: of like a little bit you know, wishy washy with
Speaker 1: what's what you're allowed to do, what you're not allowed
Speaker 1: to do. I think the timing is really interesting because
Speaker 1: we're talking about sports betting on sort of a wide scale,
Speaker 1: at least through your phones now being available in many
Speaker 1: different states. Are people allowed to just kind of gamble
Speaker 1: with real money in the metaverse? It's really complicated, it's
Speaker 1: gray area. So UM, in order to gamble in US
Speaker 1: states mostly, UM, you will need a gambling license. UM
Speaker 1: in the states that do happen to allow gambling. UM
Speaker 1: ice poker, which is the game we're talking about that
Speaker 1: exists into central and it is great because you're not
Speaker 1: necessarily gambling with chips that you then cash out for money.
Speaker 1: There are a number of different currency systems and digital
Speaker 1: assets that each have varying values that people are kind
Speaker 1: of playing with. In order in order to actually access
Speaker 1: UM the gameplay, you do have to be either you
Speaker 1: have to either buy or be in possession of an
Speaker 1: n f T that sells for you know, five thousand
Speaker 1: and seven thousand dollars or more UM. But gambling experts
Speaker 1: aren't sure whether that qualifies as consideration, which is something
Speaker 1: that someone would put up in order to gamble in
Speaker 1: real life. That's a lot of money. Yeah, it's a
Speaker 1: nice to say. I feel like all of our browser
Speaker 1: for it a little bit so a glimpse of the
Speaker 1: future here tell us is there a greater meaning in
Speaker 1: all of this way? What's your what's you're reading of?
Speaker 1: What what business mean for for the metaverse and and
Speaker 1: the companies that are going to be doing business there.
Speaker 1: That's a great question. I think it's really interesting that
Speaker 1: there's been a lot of speculation on the Metaverse and
Speaker 1: it's proces x UM. Morgan Stanley, for example, said that
Speaker 1: it could be a trillion dollar opportunity in the future.
Speaker 1: But what we're seeing right now is that the metaverse
Speaker 1: is a a lot less populated than top video games
Speaker 1: be you know, looks like maybe an older video game,
Speaker 1: and see one of the big draws there right now
Speaker 1: is doing something that looks a lot like gambling. So
Speaker 1: I think it's to be seen exactly what the staying
Speaker 1: value add is of the metaverse. I do wonder though,
Speaker 1: the way you lay it out in the story is
Speaker 1: I'm starting to kind of get a picture of could
Speaker 1: I I'm not a gambler, but could I spend a
Speaker 1: day where I'm doing a couple of things in the metaverse? Right? Um? Like,
Speaker 1: is that how we kind of a gambler but only
Speaker 1: on Saturdays? And I also do a couple of the
Speaker 1: things like go to the mall Carol's future here we're Carol.
Speaker 1: No just because if I'm from New Jersey, you're saying
Speaker 1: you said that, not me, But right, Like that's how
Speaker 1: I get it, just quickly, Like, right, that's how we
Speaker 1: could maybe spend our future. I would rather personally spend
Speaker 1: a future and select popular video games, but there are
Speaker 1: people out there who I think are getting a lot
Speaker 1: out of the metaverse. I don't know exactly how much
Speaker 1: time they spend in there, but I'm sure they're getting
Speaker 1: what they want. Love it man, Oh my god, shoulder
Speaker 1: paths here we come. Um, Cecilia, thank you so much,
Speaker 1: really appreciate Cecilia. Uh. Donna Stachio. She is video game
Speaker 1: reporter here at Bloomberg News. This is Bloomberg Business Week
Speaker 1: with Carol Masser and Bloomberg Quick Takes Tim Stinovic on
Speaker 1: Bloomberg Radio. All right, we've just got about ten minutes
Speaker 1: left to in today's trading session. As you heard from Charlie,
Speaker 1: we have taken another leg down. We are at our
Speaker 1: loads of this session, so that means down two point
Speaker 1: two of both the Doubt and the nasjack S ANDP
Speaker 1: down two percent. That headline, and you have to wonder Apple,
Speaker 1: which has been bouncing around like lots of other names,
Speaker 1: that looks like it went to session lows today. And
Speaker 1: of course the headlines of Apple, specifically UH saying it
Speaker 1: has paused all products sales in Russia, and that's a
Speaker 1: big player certainly when comes to the NASDAC also the SNP.
Speaker 1: It's about twelve percent of both the NASDAC NASDAQ one hundred,
Speaker 1: about almost seven percent of the S and P five. Well,
Speaker 1: let's get our next guest take on all of volatility
Speaker 1: that we've seen in recent weeks. Laocha, senior investment manager
Speaker 1: for pick t A Asset Management, Ella joins us on
Speaker 1: the phone from London. Ella, how are you hi? I'm
Speaker 1: doing great, thank you and thanks for thanks for having us. Yeah, well,
Speaker 1: thank you for joining us. And on a really important
Speaker 1: day too, we see stocks extending their decline, the NASDAC
Speaker 1: down two percent, the SMP five hundred down two percent,
Speaker 1: to Dow down two point one percent. Um, how do
Speaker 1: you help us make sense of the volatility that we're
Speaker 1: seeing right now? And I wonder to what extent we
Speaker 1: should be thinking about, uh, the effect of the Russia
Speaker 1: invasion on in Ukraine on global markets. Well, the markets
Speaker 1: have been having a bit of a tougher time since
Speaker 1: this year started, and I've been predominantly the cause of
Speaker 1: tighter policy expectations from the Fed, UM and other central facts.
Speaker 1: So things didn't start pretty to begin with. And and
Speaker 1: of course now we've had this uh geopolitical factor thrown
Speaker 1: into the spanner which forces the reassessment on on pretty
Speaker 1: much all vectors. So on the first basis is on
Speaker 1: the growth side, probably more of a risk for Europe
Speaker 1: than the US, more immediate risk, but also on the
Speaker 1: fact that it causes a bit of a supply shock, um,
Speaker 1: you know, with commodity prices already elevated heading higher, so
Speaker 1: again you know, hitting the growth spectrum, but still within
Speaker 1: the backdrop of much higher incasion. So a very tricky
Speaker 1: holisymics probably most of hinto the nineties seventies, which is
Speaker 1: when we last experienced a bit of a you know,
Speaker 1: not a bit, but this type of magnizude of oil
Speaker 1: oil price shocks. Very difficult time, Yes, it is a
Speaker 1: difficult time, and that's something we heard from Congress and
Speaker 1: for Citadel, who has seen his own share of ups
Speaker 1: and downs, built a successful hedge fund UH Citadel Securities
Speaker 1: as well, but saying that, you know, we're in this
Speaker 1: incredible and interesting period of volatility, and we just don't
Speaker 1: quite know yet he caused it a very very volatile
Speaker 1: inflection point, and just don't know whether or not the
Speaker 1: Russians will be satisfied by simply extending their effective borders
Speaker 1: in the Ukraine. That's Ken Griffin talking to David Rubinstein
Speaker 1: for Bloomberg Wealth and Exclusive there. But I guess so
Speaker 1: at this point, there's a lot of ifs out there. So, Ella,
Speaker 1: do you want as our Abigail Doolittle, who covers the
Speaker 1: markets for us, say that the place where we're seeing
Speaker 1: money move into is cash essentially, is that where you
Speaker 1: want to be right now? Just to kind of write
Speaker 1: it out, I mean, cash is an investment choice. We
Speaker 1: tend to forget that. It's not a popular choice because
Speaker 1: of where you know, real rates are for the time being,
Speaker 1: but in uncertain periods, it's definitely want to keep higher
Speaker 1: CASHA locations. Would you recommend investors do that right now?
Speaker 1: Is that what you would be recommending? Like, I mean,
Speaker 1: we would clearly recommend um for the investments in your
Speaker 1: typical safe havens, your sort of treasures, gold, cash, they
Speaker 1: are good places to to hold money now, although we
Speaker 1: have been, you know, for our from our end, we
Speaker 1: have been increasing our cash holdings for the funds that
Speaker 1: we've managed for our clients as well. Um, cash is
Speaker 1: not a bad place to be. It's really interesting to
Speaker 1: hear that, Well, how do you know when to deploy
Speaker 1: that cash? Again? Well, we need some clarity on the
Speaker 1: geopolitical situation that seems to be the most difficult one
Speaker 1: now And as you said that your prior speaker, Um,
Speaker 1: we just don't know. We have to react to the
Speaker 1: information as it comes along. I mean, let's just not forget,
Speaker 1: let's not faced this type of geopolitical crisis certainly not
Speaker 1: for for a good four five decades. So it is
Speaker 1: interesting too, thow because at tough times, and we know
Speaker 1: that this has been a tough market environment. We've seen
Speaker 1: a lot of volatility. We've seen parts of the market
Speaker 1: sectors do you know, official corrections, We've seen even some
Speaker 1: particular you know, certain names or certain aspects of the
Speaker 1: market go into a bear market. It also means sometimes
Speaker 1: that that's an opportunity. Where are the opportunities aside from
Speaker 1: maybe saying play it safe and go to their safe havens,
Speaker 1: where do you see the opportunities. Well, for us, it's
Speaker 1: been a case of um, you know, in terms of
Speaker 1: fixed income pushing back again some of the more hapkish
Speaker 1: expectations built in the markets in the industry very front
Speaker 1: and of the curve. We don't see tremendous value in
Speaker 1: credit markets here. We have to say, but you know,
Speaker 1: I still have to insist. I'm afraid that you have
Speaker 1: to sit with It's such uncertain times, with so many educations.
Speaker 1: We do not understand that I would not there. You know,
Speaker 1: it's not often that it happens that I wouldn't also
Speaker 1: recommend spots and places. You know, if I must fully
Speaker 1: take one place, one of the regions that's re priced
Speaker 1: the most was in Chinese of the state for you know,
Speaker 1: Asia was ahead of that, and go, so perhaps that
Speaker 1: one place U but you know, with with a lot
Speaker 1: of areification, I say that, yeah, hey, hello, thanks to
Speaker 1: the notes that our producers got us about your appearance. UM.
Speaker 1: You drop parallel between perhaps a historical parallel here, uh
Speaker 1: the seventies oil price shock, and I'm and I'm wondering
Speaker 1: what we need to know as investors if we get
Speaker 1: to a scenario like that. Well, just a scenario for
Speaker 1: the seventhies. UM is basically one where the FED cannot
Speaker 1: be fully insensitive to what's happening to inflation. You know,
Speaker 1: it has ramifications for society, as as seen in the
Speaker 1: US has been very hot on the debate spectrum. UM,
Speaker 1: so it's a very very different setup for the e CB.
Speaker 1: We find for the European counterparts, because um, for them,
Speaker 1: we actually believe it's a little bit more like nine eleven.
Speaker 1: You know, I know it sounds a bit dramatic, but
Speaker 1: it is much more looking to the situation. Well for
Speaker 1: the for the fat it's it's you know, it's a
Speaker 1: sort of an inflationary shock where it need to take
Speaker 1: into consideration that element. So perhaps the FED is less
Speaker 1: inclined to do a lot more here relative to the ECB. Well,
Speaker 1: we will certainly see. We're gonna hear from j Powell
Speaker 1: over the next couple of days. Um Ella, thank you
Speaker 1: so much, Ella Hotel. She's senior investment manager at Picti
Speaker 1: Asset Management. On the phone from London. Thanks for listening
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