Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
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Speaker 1: Take Today. It's also the new issue of Business Week
Speaker 1: magazine just out. It's about the Trump allies, such as
Speaker 1: Steve Bannon, bonding with Brazil's president and f y Tim.
Speaker 1: It's a playbook we've seen before. It certainly is. We've
Speaker 1: seen it from President Trump himself. And joining us now
Speaker 1: is Joel Weberter, editor at Bloomberg Business Week. He joins
Speaker 1: us on the remote from Brooklyn. Also joining us as
Speaker 1: Andrew Rosetti, Latin American reporter for Bloomberg News. He joins
Speaker 1: us uh from Rio. Great to have both of you
Speaker 1: on with us. Hey, Joel, I want to start with you, Um,
Speaker 1: what is the playbook that Bolsonaro's following specifically from President
Speaker 1: Trump right now? And it's important because hey, there's an
Speaker 1: election coming up. There's an election coming up, and and
Speaker 1: just like the Trump playbook, you just immediately cast as
Speaker 1: much doubt on that election as you can. And he's
Speaker 1: already saying it's rigged, and you know, we've got months
Speaker 1: to go until then. He's offered no actual evidence of that, um,
Speaker 1: but it is a tactic and one that you could
Speaker 1: probably draw a dotted line directly to Trump World, which,
Speaker 1: as Andrew's story goes into, is actually had really interesting
Speaker 1: links um with Brazil. Uh. So this is not like,
Speaker 1: you know, Trump and and Bolsonaro having lunch together anything
Speaker 1: like that. It's more of like, all the machinery behind
Speaker 1: Trump and all the machinery behind Billsonnaro, those gears are
Speaker 1: are uh increasingly linked. So Andrew take us into how
Speaker 1: the story came about. Well, Um, about two weeks ago
Speaker 1: there was a brazil version of SEPAK was held in
Speaker 1: the capital, Brazilia, and former Trunk spokesperson Jason Miller was
Speaker 1: among the speaker speakers there and leaving Brazil, he was
Speaker 1: actually detained in an airport um UH in links to
Speaker 1: an ongoing federal inquiry and the spread of fake news
Speaker 1: and misinformation here. He didn't speak to us, but from
Speaker 1: there we started digging into these ties, and what we
Speaker 1: found is that there's a long close relationship between Steve
Speaker 1: Bannon and Um Bosonaro's oldest Bosono's son, Ed Warlow, a congressman,
Speaker 1: and that relationship goes back to about eighteen and since then,
Speaker 1: you know, we were told that they're um in pretty
Speaker 1: constant contact and a lot of the tactics we're seeing
Speaker 1: from uh Bothonaro father is you know, direct links to
Speaker 1: what we've seen in the US, whether their motorcycle rallies
Speaker 1: modeled off for Sturgis UH and pouring doubt on voting machines.
Speaker 1: These are all echoes of things we've seen in the US,
Speaker 1: and what we're hearing is it comes right from Trump world. Well,
Speaker 1: it's fascinating the things that yeah, please don't yeah no,
Speaker 1: I was gonna say, like, one of the things that
Speaker 1: I think is significant to the story, and this is
Speaker 1: something that um Um we go into, is that you know,
Speaker 1: the Trump world, um kind of exporting of that Trump is. Um,
Speaker 1: it's it's kind of been something that's been attempted before,
Speaker 1: right Andrew like and how did that pain out? Well? Yes,
Speaker 1: Bandon has been trying this new UH in Europe with
Speaker 1: his with his so called the movement some of these UH,
Speaker 1: you know, far right groups, anti immigration groups in Europe,
Speaker 1: and it wasn't that successful. But what Bannon told us
Speaker 1: is he sees UH Brazil's presidential election next year as
Speaker 1: a precursor from US midterms. So he and many of
Speaker 1: other you know, other such things likes Miller, they're really
Speaker 1: throwing their weight behind this. They you know, they think
Speaker 1: both to Naro going it's likely going against his likely opponent,
Speaker 1: former president Lula. Um. You know, they see this really
Speaker 1: hearkened and reverberate in the US, just like Brexit, in
Speaker 1: their opinion, did in the update of Trump. So they're
Speaker 1: really really if you launched banners and talk shows and podcasts,
Speaker 1: they're going on there just constantly, and they're from what
Speaker 1: we hear is in touch with not just edward Son
Speaker 1: but other advisors as well. When if I'm fascinating, the
Speaker 1: more I feel like there's a lot of stories that
Speaker 1: been that have been in Business Week that just kind
Speaker 1: of remind us that Bannon still out there behind the scenes,
Speaker 1: to be quite honest, Andrew, but he's still doing his thing. Yeah, definitely, definitely,
Speaker 1: And it's you know, it's really interesting too, is that
Speaker 1: you know, they've completely given Biden in one way is
Speaker 1: the cold shoulder with all this. Well, even though that
Speaker 1: Biden has gone uh fine is in the White House,
Speaker 1: they continue to follow Trump and this has caused some
Speaker 1: a lot of tension um uh on the diplomatic fronts
Speaker 1: um uh. President bolson was one of the last world
Speaker 1: leaders to recognize uh Biden's victory over Trump, and since
Speaker 1: then we've what we've seen is that you know, very
Speaker 1: cool relationship between the two countries and this you know,
Speaker 1: Brazil is one of the one of the world's, the
Speaker 1: largest country in South America and I believe that sixth world,
Speaker 1: sixth most populous countries. So for the habit uh fixation
Speaker 1: on Trump could cost Brazil during the town the line. Well, so,
Speaker 1: so give us the context for everything that's happening domestically
Speaker 1: right now ahead of the election and how this plays
Speaker 1: into the challenge that Bolsonaro is facing well, right now,
Speaker 1: President Bolsonos polombers at Aretta record low, inflation is rising,
Speaker 1: hunger is spreading, um, you know, as the economy is reopening,
Speaker 1: but at the very uneven UH rebound here UM. And
Speaker 1: you know, Brazilians by and large are very very UM
Speaker 1: frustrated it and upset by Um Bolsonaro really, you know,
Speaker 1: doubting the coronavirus. He um had it himself. He's called
Speaker 1: it a little flu last year. And right now, for
Speaker 1: those who haven't been watching the headlines, he and his
Speaker 1: and his cabinet were just in the US and his
Speaker 1: health minister just came down with COVID and UM, as
Speaker 1: did his son on the trip of the U n
Speaker 1: g A. So Brazilians are really frustrated with his antics
Speaker 1: in a lot of ways. And what Um Bolsonaro has
Speaker 1: done has gone full Trump. You know, he continues to
Speaker 1: cast out on on COVID. He continues to call his critics,
Speaker 1: you know, UM, of spreaders of fake news and and
Speaker 1: saying that they're going to trying to hijack voting machines
Speaker 1: and steal the election next year. What people fear is
Speaker 1: that he's really channeling Trump. And you know, for a
Speaker 1: January six, assault on the capitol situation, and he's really
Speaker 1: laying the groundwork to um, you know, contest the election
Speaker 1: of disregard the results next year if he uses speaking
Speaker 1: of that election, UM, Lula basically one of the most
Speaker 1: popular politicians in Brazilian history, and so what what are
Speaker 1: the meeting of those two politicians? What? What? What? What
Speaker 1: can we expect? What's that going to look like? Well,
Speaker 1: right now, you know, poll very early polls are showing
Speaker 1: Lula cruising to a big, big victory right now. In Brazil,
Speaker 1: there is usually a it's a two round. Uh, it's
Speaker 1: a two round process. So if there's not a absolute
Speaker 1: majority in the first, it would go to his second round.
Speaker 1: But right now some polls suggest that Lula up by
Speaker 1: as much as twenty points. And it's interesting this parallel
Speaker 1: to the US, because Lula, you know, not only being
Speaker 1: so popular, but he's really taken a step back and
Speaker 1: say like Biden did in the US and saying, you know,
Speaker 1: I am I'm taking the pandemic seriously. And this has
Speaker 1: been the thorn in Bolsonaro's side, uh, for you know,
Speaker 1: much of these recent months is that he can't shake
Speaker 1: the image that COVID has done um in his country,
Speaker 1: and many people see that. As this fall, Brazil has
Speaker 1: just passed six hundred thousand cortified desk and so people
Speaker 1: are not willing to forget so soon. Well, it's fascinating
Speaker 1: to make the comparison between the United States Trump and
Speaker 1: what's going on in Brazil. Andrew, thank you so much.
Speaker 1: Andrew Rossotti, Uh, Latin American reporter on the phone in Rio,
Speaker 1: along with Chill Weber, Editor Bloomberg business Week. Check out
Speaker 1: the new issue of Business Week. It is the sooner
Speaker 1: than you think issue on news stands, online at business
Speaker 1: Week dot dot com and of course on the Bloomberg terminal.
Speaker 1: This is Bloomberg. This is Bloomberg Business Week with Carol
Speaker 1: Messer and Bloomberg Quick Takes. Tim Stinovic on Bloomberg Radio.
Speaker 1: All right, what a week. When it comes to again
Speaker 1: Andy Cohen drinking game. Every time we said China, we'd
Speaker 1: all be on the floor. Oh my god, we'll be
Speaker 1: on the floor. Uh. Definitely control holding the news flow
Speaker 1: in a big way when it comes to markets, many industry.
Speaker 1: The latest we know, Tim on our radar once again,
Speaker 1: it's all about crypto. We talked about this with Katie
Speaker 1: and let's talk about it. With a really great voice.
Speaker 1: Who joins us once again talking all things China. Guy
Speaker 1: with so much experience in the country, Dexter tiff Roberts.
Speaker 1: He's Mansfield Fellow at the University of Montana, also Senior
Speaker 1: Fellow at the Atlantic Council's AGIA Security Initiative, and our
Speaker 1: former colleague at Bloomberg Business Week. He was China bureau
Speaker 1: chief for years and the author of the myth of
Speaker 1: Chinese Capitalism, The Worker of the Factory and the Future
Speaker 1: of the World, that came out in March of He
Speaker 1: joins us once again on the phone from Montana. Dexter,
Speaker 1: how do we make sense of this week? Well, as
Speaker 1: you say, it's been it's been quite a week. Uh,
Speaker 1: and we've seen it in the markets around the world.
Speaker 1: I think the bigger picture is China, and uh it's
Speaker 1: you know, it's leader she Jane Preeny is continuing with
Speaker 1: this effort to uh put politics back into the economy.
Speaker 1: There's a massive the Tory push throughout the tech sector,
Speaker 1: the cryptocurrency, the latest ban on cryptocurrency. It seems like
Speaker 1: they've been numerous announcements over the last couple of years
Speaker 1: from China, where they've banned it and banned it again.
Speaker 1: Is also saying, you know, this industry crypto, which fluants
Speaker 1: its freedom from regulation, has no place in China. And
Speaker 1: then of course we have ever Grand And that's everything
Speaker 1: about trying to deleverage the economy. But I think at
Speaker 1: the same time also send a message to the Chinese
Speaker 1: people that uh, the excessive wealth uh in some cases
Speaker 1: achieved through questionable means, uh, which I think is is
Speaker 1: rife throughout the real estate sector is no longer tolerated.
Speaker 1: So I wonder if you, um, we're on the ground
Speaker 1: in China right now, over in Asia and you were,
Speaker 1: you know, putting your team and you're saying, Okay, here's
Speaker 1: the stories I want to tell, or we need to
Speaker 1: be telling when it comes to China, when it comes
Speaker 1: to ever Grand, and what what what? What are the
Speaker 1: questions that we need to be asking to be really smart,
Speaker 1: especially as investors. Former US Secretary of the Treasury Larry
Speaker 1: Summers telling our David Weston earlier, you know that people
Speaker 1: should be on guard here. I don't think any of
Speaker 1: us have full transparency of what is going on in China.
Speaker 1: And that's the worry. So what are the questions, what
Speaker 1: are the things that we need to be probing to
Speaker 1: really understand stuff? Well, I think in terms of looking
Speaker 1: at future targets from the Chinese government in different industries
Speaker 1: and businesses, anything that really touches on the livelihood of
Speaker 1: the Chinese people. Uh, they went after private education. Um,
Speaker 1: they've they've gone after the big tech platforms and now
Speaker 1: now real estate as well. All these things really matter
Speaker 1: to the Chinese people. So there we've heard about again
Speaker 1: and again about this new common Prosperity campaign. This is
Speaker 1: about trying to reduce wealth inequality and uh. And it's
Speaker 1: the same time have a private sector that is much
Speaker 1: more under the under the thumb of the government and
Speaker 1: the Communist Party. So I think an investor needs to
Speaker 1: look at what might comes next, what might come next?
Speaker 1: What what matters to the Chinese people? Um? Well, what
Speaker 1: does in your view? Because they've covered a lot. Yeah, Well,
Speaker 1: I think obviously private health care, we've already seen signs
Speaker 1: of that. That's another big one. Um and UM I
Speaker 1: think in terms of you know, we'll see more on Uh.
Speaker 1: The other part of the coin is anywhere where you
Speaker 1: see real extremes of wealth. You see business people making
Speaker 1: a lot of money, perhaps in industries that are destabilizing
Speaker 1: to the economy, like like real estate, which has built
Speaker 1: up so much leverage. Those are all going to be
Speaker 1: targets going forward. I've asked you this before, Tiff, but
Speaker 1: I want to ask you again, given that it's been
Speaker 1: a couple of months, what's the end game for Hijin Ping.
Speaker 1: I think that Jingping has made it abundantly clear over
Speaker 1: the last six months that he's actually willing to Uh.
Speaker 1: First of all, he wants politics and control. He wants
Speaker 1: the politics in command economy. Uh. He he wants he
Speaker 1: sees the private sector as continuing to be important in
Speaker 1: creating jobs and vibrancy and innovation. But he wants it
Speaker 1: all under the thumb of the party and the government.
Speaker 1: So I think the belief is that amongst the top
Speaker 1: leadership is that they can actually continue to carry out
Speaker 1: these crackdowns, uh, pull some of the excesses out of
Speaker 1: the economy, like the excess of leverage, get rid of
Speaker 1: some of the real extremes of wealth, and they can
Speaker 1: continue to grow. I'm not at all sure that they
Speaker 1: can pull that off. So, so he wants capitalism but
Speaker 1: not too much capitalism. And you think it's fair to
Speaker 1: say that he thinks that some of these businesses and
Speaker 1: these people involved with these businesses became just simply too powerful.
Speaker 1: I think that's exactly what he thinks, um. And he's
Speaker 1: planning to again have a private sector that is much
Speaker 1: more answerable to the party. He wants to see, uh,
Speaker 1: you know, lesser extremes of wealth and he's going to
Speaker 1: try to pull that off, and that means we're gonna
Speaker 1: see more crackdowns going forward. Hey, tif though, how do
Speaker 1: you reconcile what president is doing right now and wanting
Speaker 1: more industries under the thumb of the Chinese government with
Speaker 1: also his ambitious agenda being leaders on you know in
Speaker 1: the high tech world, really building out industries no longer
Speaker 1: being you know, the manufacturer to the world, which they
Speaker 1: are increasingly not. But how how can they do that?
Speaker 1: Can they do both? Well? I think there's actually a
Speaker 1: real level of hubrists we're seeing and the sense that
Speaker 1: they can do both. They can become more self reliant,
Speaker 1: they can close off their economy to some degree to
Speaker 1: the rest of the world. You know, they've basically blocked
Speaker 1: all traveling and out of China and probably will continue
Speaker 1: until at least late next year when they have a
Speaker 1: party Congress um and maybe a bit more difficult for
Speaker 1: you know, companies and institutions around the world to work
Speaker 1: with China. I think they have this idea that they
Speaker 1: can it. They can go it alone. They've reached a
Speaker 1: level of power and an economy of a certain size.
Speaker 1: I'm afraid that again, Hubris here, I don't think that
Speaker 1: it really is doable. Just in the last thirty seconds
Speaker 1: that we have. What are you watching for next? What's
Speaker 1: the next shoe to drop? Again? I I just mentioned
Speaker 1: the healthcare industry, for the private healthcare industry. China refers
Speaker 1: to three big mountains that contribute to inequality in the
Speaker 1: wealth gap, housing, education, and healthcare. They've hit housing, They've
Speaker 1: hit education. I think healthcare is up map. It's really
Speaker 1: fascinating because in many ways that's the same three here
Speaker 1: in the United States, and the US is also looking
Speaker 1: to tackle it, but obviously, uh by different mode, not
Speaker 1: to mention, you know, quote unquote raining technology exactly exactly.
Speaker 1: So it's interesting to see the different um ways of
Speaker 1: doing so. Tif, you are the best, Tif roberts uh
Speaker 1: he is man Mansfield Fellow at the University of Montana,
Speaker 1: author former Bloomberg BusinessWeek trying to be or achieved. His
Speaker 1: book The Myths of Chinese Capitalism, really plays into so
Speaker 1: much of what we're seeing right now. Well, the pandemic
Speaker 1: has up ended tim We know how we work, where
Speaker 1: we work, how bosses and workers think about the process.
Speaker 1: Sometimes process was overwhelming. Boundaries between work and life are unclear.
Speaker 1: Sometimes the ability to just plow through without office distractions,
Speaker 1: not having to commute and so on created some clarity.
Speaker 1: So I'm guess that our next guest us something to say.
Speaker 1: It's Juliette Fund, founder and CEO of the Juliette Fund Group,
Speaker 1: and she joined us on the phone from Los Angeles.
Speaker 1: Julian's new Juliet's new book is called A Minute to Think,
Speaker 1: Reclaim creativity, conquer business, and do your best work. Juliet,
Speaker 1: thanks so much for joining us on the show. What
Speaker 1: was it about the pandemic and everything that we've been
Speaker 1: through collectively? Um, and how it's contributed that that that
Speaker 1: that prompted you to write this? Well, I wrote the
Speaker 1: book before the pandemic, but the conditions of the pandemic
Speaker 1: have only amplified things that have been around and work
Speaker 1: for for decades. I've been watching people for many, many
Speaker 1: years sit in tolerated misery of the day, you know,
Speaker 1: just trying to get through an earnest day's work and
Speaker 1: finding that it becomes the hardest part of their day.
Speaker 1: Unnecessary work, emails, meeting deck reports, a lack of connecting
Speaker 1: with meaning. These things have been around for a while
Speaker 1: before the pandemic, but the pandemic has certainly amplified them well.
Speaker 1: And it's interesting, UM, I was going to ask you
Speaker 1: too about your company and what you were doing pre pandemic.
Speaker 1: TuS litle bit more about UM your consultancy and training firm,
Speaker 1: and again going back to kind of pre pandemic and
Speaker 1: maybe how you're thinking has changed a little bit. Sure,
Speaker 1: we've been doing this work for about ten years, and
Speaker 1: I did it ten years before that as a speaker
Speaker 1: and consultant independently. We go into companies, we help them
Speaker 1: to reduce wasteful work and basically find more time to
Speaker 1: be thoughtful, strategic, connected. And the pandemic has been such
Speaker 1: a fascinating amplification of the worst of work and so
Speaker 1: certain ways, but also has given us a little tiny
Speaker 1: taste of what's possible with giving people more liberty, that
Speaker 1: when they do have flexibility and liberty, that there are
Speaker 1: ways that work can feel different in ways that we
Speaker 1: haven't touched in a really, really long time. It's a
Speaker 1: it's a preview of what's possible if we use this
Speaker 1: window of opportunity to redesign the way works feel well.
Speaker 1: I want to follow up on that, Tim, and I've
Speaker 1: had a lot of conversations with heads of companies, well
Speaker 1: known companies, publicly traded companies, um. In fact, we're just
Speaker 1: talking about Franco Suitis of Cisco Systems yesterday, who is
Speaker 1: an executive EP chief People Policy, UH and Purpose officer,
Speaker 1: and talking about hybrid work in particular. Do you think
Speaker 1: that seeing how productive people can be and maybe happier
Speaker 1: in terms of having some flexibility and how they work,
Speaker 1: that this idea of kind of being more liberal and
Speaker 1: opening up how we think about work work, does it
Speaker 1: stay you with us? Because there's a lot of executives
Speaker 1: who've got some pretty expensive office space who say I
Speaker 1: want you back in the office. Sure that we have
Speaker 1: to look at both populations of the pandemic evenly and fairly.
Speaker 1: There has been a population that's tasted a little bit
Speaker 1: of liberty, and they're starting to realize that work can
Speaker 1: feel different with the freedom that they've been given. But
Speaker 1: there's also an enormous percentage of people for whom work
Speaker 1: has gotten worse in the sense that they've lost any
Speaker 1: semblance of boundaries that they had before. They used to
Speaker 1: have a little bit of separation maybe between work and life,
Speaker 1: and now it's just shuffled like a deck of cards,
Speaker 1: and there is no separation. They don't know how to
Speaker 1: turn on or off. The zoom maholic zoom off on
Speaker 1: all day long has literally expanded to seven and to
Speaker 1: seven pm. So it's unsustainable and we have to dress
Speaker 1: both sides of that. Okay, Here in New York on
Speaker 1: Wall Street, it's you know, it's just twenty minutes before
Speaker 1: five roughly. What's one tip you can give us to
Speaker 1: to help us go into the weekend and and sort
Speaker 1: of enter the and stay unplugged. Sure, entering the weekend,
Speaker 1: we want to, first of all, have a way to
Speaker 1: close the door on work. It's very very difficult. One
Speaker 1: technique is to take all of your work related things
Speaker 1: and make them in put them inside some sort of
Speaker 1: physical compartment of desk a drawer addresser so that you
Speaker 1: can't visually keep seeing them through the time when you're
Speaker 1: supposed to be disconnected. Another incredibly simple technique, although it
Speaker 1: sounds a little lighthearted, is if you just say out
Speaker 1: loud in front of the people that you love. I
Speaker 1: call this trapping yourself and a promise. You say, well,
Speaker 1: I'm done for the weekend. No more work for me
Speaker 1: this weekend. And once you say out loud that you've
Speaker 1: made a commitment that there will be a boundary between
Speaker 1: work and leisure, it's really hard to go sneak that
Speaker 1: sip of the laptop. You can do this even alone.
Speaker 1: If you live alone, you can have a boundary buddy
Speaker 1: and just text each other and say work is over, um,
Speaker 1: really wonderful, hope we can get you back in the
Speaker 1: future because some really great tip. And you're someone who
Speaker 1: works with Spotify, Nike, Costco, Cisco, the Food, Cisco, ESPN,
Speaker 1: so many companies. Juliet Fund founder and CEO of Julie
Speaker 1: Juliet Fund Group. Her book is a minute to think,
Speaker 1: reclaim creativity, conquer business, business and do your best work.
Speaker 1: Rolo Macro Journal. Yeah but you let me drive no, no,
Speaker 1: no's go dru home please, I'll do the right drivels me.
Speaker 1: I want to drive, just drive. The questions drying. This
Speaker 1: is the drive to the globe. Give me thanks, We'll
Speaker 1: drive us to dawn. On Bloomberg Radio, all right, you
Speaker 1: just got about ten minutes left in today's trading session.
Speaker 1: We are near our highs of the session. On this Friday,
Speaker 1: what was been quite a week. Timmy and I were
Speaker 1: reaving some fun about like it's like Monday never happened.
Speaker 1: It's pretty wild to see that. I mean, if we
Speaker 1: take a look at where stocks are for the week,
Speaker 1: we're looking like we're gonna end how the higher by
Speaker 1: six cents of one percent? A little bit of a
Speaker 1: game there. All right, let's get to it. Time to
Speaker 1: the dot, Time for the drive to the clothes. Chad
Speaker 1: Garcia is with s VP, Lead portfolio manager at Maria Funds,
Speaker 1: co portfolio manager of the Ave Maria Growth Fund. That fund,
Speaker 1: by the way up year today, putting it in the
Speaker 1: fort compared with other funds in the category. That's according
Speaker 1: to our data up the past one year. He joins
Speaker 1: us on the phone from Florida. Chat, how are you.
Speaker 1: I'm doing great, thanks for having me on. Hey, this
Speaker 1: market environment, how would you describe it? Well, this week
Speaker 1: has been pretty volatile but mostly flat. Right, isn't that crazy?
Speaker 1: It is? It is. Although it is nice to be
Speaker 1: up at the end of the week given or restarted,
Speaker 1: it's always nice to be up on a Friday. Right.
Speaker 1: Does that tell you, though, that Chad, that you know
Speaker 1: buying the dip was the right move here? I was
Speaker 1: buying the dip in in my portfolios. It was enough
Speaker 1: of the dip for you to buy because I think
Speaker 1: that's what I did well. I think I think that's
Speaker 1: the question that a lot of people had, is is
Speaker 1: this a precursor or something bigger that's going to come? Well,
Speaker 1: I mean the the what we were buying was, I
Speaker 1: think was a little bit more effective than than internal economy,
Speaker 1: and that was enough to make me buy um with
Speaker 1: respect is as a precursor of something more to come.
Speaker 1: I think that the earnings it is strong strongly. It
Speaker 1: looks like the coronaviruses is dissipating in the hospital hospitalizations
Speaker 1: for the US is about eighty thousand, was just down
Speaker 1: from the recent peak of a hundred thousands. So I
Speaker 1: think that seeing the economy in the year strong and
Speaker 1: to the point where they're gonna they're gonna announce the
Speaker 1: taper in November and probably start that in December. Hey,
Speaker 1: let's go back to UM. I love talking about people
Speaker 1: or with people who are managing funds. You mentioned you
Speaker 1: were buying on some of the declines that we saw.
Speaker 1: Obviously there were probably some more interesting entry points. What
Speaker 1: in particular were you buying. UM We don't disclose our
Speaker 1: our buises so after they've been publicly disclosed, but UM,
Speaker 1: but I can tell you some some interesting stocks that
Speaker 1: we're definitely looking at. UM. Well, the biggest so you
Speaker 1: mentioned that the Nickel pultfolio managed the Growth Fund, also
Speaker 1: um pultfolio manager of the Focus Fund, which is in
Speaker 1: the top quartile UM year to date. In our largest
Speaker 1: position is e Dreams, which is an online travel agency
Speaker 1: in Europe, and this is interesting for a couple of reasons.
Speaker 1: Number one is that they only focused on leisure travel,
Speaker 1: and leisure travel is going to rebound them much quicker
Speaker 1: than the overall travel market because business is going to
Speaker 1: take a little bit to recover, and we've already seen
Speaker 1: that They've they've announced their August bookings and the August
Speaker 1: bookings were up over the twenty eight pre COVID number.
Speaker 1: And so the consumers, whether it's in the US or
Speaker 1: um Europe, they want to they want to travel, and
Speaker 1: so that's that's exciting. And then the other exciting part
Speaker 1: of this business is that they're switching from a transaction
Speaker 1: model to a subscriber model where the subscribers get discounts
Speaker 1: on trips that they book using them and they pay
Speaker 1: a fee up front for that privilege. And currently there
Speaker 1: A subscribers are up to a million and a half subscribers,
Speaker 1: which is exciting for them. It's been on quite a run.
Speaker 1: It's up about so far this year. But you think
Speaker 1: there's more opportunity, more moved to the upside. I think
Speaker 1: that at one and a half million subscribers, they're at
Speaker 1: the subscribers are paying on sixty years a year. Just
Speaker 1: the cash lew stream from those subscribers alone, I think
Speaker 1: values this said ten to twenty euros is share and
Speaker 1: get the rest of the business were free. And the
Speaker 1: A d R S in the U S trade or
Speaker 1: the ticker E D d r F just in case
Speaker 1: anybody that the rs in the US aren't that liquid,
Speaker 1: so to be the one that you'd probably want to
Speaker 1: buy in the primary market. Good to chat another stock
Speaker 1: our producers telling us that you have as a pick.
Speaker 1: Hiko has about sixteen billion dollars in market cap airplane parts.
Speaker 1: Take us into it, Yeah, Hiko. Hiko is also also
Speaker 1: related to travel. Like the Dreams, this one's gonna be
Speaker 1: a little slower to recover given that they're exupposed to
Speaker 1: the travel industry overall. But Hiko has two business is
Speaker 1: the largest is an aftermarket parts business for commercial planes.
Speaker 1: And what they do is they put themselves in a
Speaker 1: duopoly position with the original equipment manufacturers. They charge about
Speaker 1: thirty less than the original equipment manufacturers and they capture
Speaker 1: about a third of the market and the secret sauces
Speaker 1: the buility. The ability to sell parts for airplanes is
Speaker 1: governed by the f A. A has to approve each
Speaker 1: part that goes on an airplane. In Hike those advantages
Speaker 1: that they can get about five parts through the f
Speaker 1: A approval process per year, which is multiple higher than
Speaker 1: anybody else. And so what they do is they allow
Speaker 1: the airlines an alternatives part supplier to to the original
Speaker 1: equipment manufacturers and they save the airline money so while
Speaker 1: Hiko is going to be a little slower to recover
Speaker 1: the kneed rooms because it's exposed to the overall travel market,
Speaker 1: it should do decently well because you know, in this
Speaker 1: challenging environment, the airlines are going to be looking to
Speaker 1: see this money anyway they can. Hey, just quickly, just
Speaker 1: got about thirty seconds left. A p I Group is
Speaker 1: another one, an industrial maintenance company. It's up about this
Speaker 1: year four point seven billion dollar market quacked cap. Excuse me,
Speaker 1: just quickly your take on that, and why do you
Speaker 1: think it's a buy? Well, it's it's about an eight
Speaker 1: percent free cash real yielded for a company that has
Speaker 1: an organic growth rate. This company has grown organically about
Speaker 1: seven percent per year for the for the decade prior
Speaker 1: to COVID, and then on top of that organic growth,
Speaker 1: they are able to roll up Momo pop small businesses
Speaker 1: paying between four UM four to six times Evada, which
Speaker 1: for further accelerates set that growth. They just bought Chub
Speaker 1: Fire and Safety, which is a large business that was
Speaker 1: an orphaned company out of Carrier, a pullet company that
Speaker 1: gets them into multiple markets around the world. UM black
Speaker 1: Stone Group was also bids that business, but decided to
Speaker 1: back a PI S bid by investing an API through
Speaker 1: convertible preferred. I think a Blaxton is gonna open up
Speaker 1: their portfolio of real estate holdings and a lot well
Speaker 1: good to know, and unfortunately've got a round ched Garcia
Speaker 1: over at a Maria Funds joining us on the phone.
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