WEBVTT - Graham-Taylor: Equities underperform when more easing announced

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<v Speaker 1>This is Bloomberg Surveillance. We still make much higher old

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<v Speaker 1>crisis for ship production in the US to stop declining

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<v Speaker 1>and begin to increase. I'm worried that there's a deceleration

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<v Speaker 1>going on in part because of business caution in the

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<v Speaker 1>face of uncertainty. We still have the FED continuing a

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<v Speaker 1>rate high cycle into two thousand seventeen because the nominal

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<v Speaker 1>numbers start looking so much better because translation and figures

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<v Speaker 1>are moving higher. Bloomberg Surveillance your link to the world

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<v Speaker 1>of economics, finance, and investment on Bloomberg Radio. Good morning everyone,

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<v Speaker 1>Bloomberg savannas who welcome all of you a FED day.

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<v Speaker 1>One PM this afternoon will dive into it with Allen Zentner,

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<v Speaker 1>Richard Clarida, Alan Blinder among others joining us with their

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<v Speaker 1>important perspective. I'm told it's a dead meeting. I'm kidding.

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<v Speaker 1>They all say it's who's ever said it's a dead meeting.

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<v Speaker 1>It's a live meeting, and I guess there's not going

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<v Speaker 1>to be any decision of the statement. Always will have

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<v Speaker 1>clues in the press for it's following. I'm sorry, I

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<v Speaker 1>expect not bomb shells, and maybe it won't be like droggy,

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<v Speaker 1>but I actually think it will be most interesting what

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<v Speaker 1>Cherry Yellin says to the UH, the gathered in Washington

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<v Speaker 1>or Eric Schatzker, among others, gathering with Cherry yelling um

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<v Speaker 1>this afternoon, So one pm will start that UH festivities

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<v Speaker 1>right now. Bloomberg Surveillance brought to you you by Cone Resideck Accounting,

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<v Speaker 1>Tax Advisory, look Ahead, Gain Insight, Imagine More of the

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<v Speaker 1>out more at Cone Resnick dot com. We are thrilled

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<v Speaker 1>to bring you Lynn Graham Taylor working with James Foley

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<v Speaker 1>over at Robbo Bank. Why is this Lynn Graham Taylor

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<v Speaker 1>other than everybody else blathering about negative rates, has actually

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<v Speaker 1>done hyper hyper hyper detailed research on the state of

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<v Speaker 1>EU banking. And so if somebody puts out a note

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<v Speaker 1>Deutsche Bank is gonna fall off a cliff, Our unit

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<v Speaker 1>credits gonna fall off a cliff. A rival bank, I'm kidding,

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<v Speaker 1>Lynn is gonna fall off a cliff. How about somebody

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<v Speaker 1>that's actually dug into the details. Lynn, Congratulations on your

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<v Speaker 1>work with Richard McGuire. I thought your research piece was

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<v Speaker 1>riveting about actually what's gonna happen here. These banks stock

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<v Speaker 1>actions aren't good. What is the stock price signal for

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<v Speaker 1>European banks? Yeah, I mean, obviously we're on the more

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<v Speaker 1>on the fixed income side. Obviously, obviously we've seen well,

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<v Speaker 1>you know, all of all of the At the moment,

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<v Speaker 1>it seems very much that we are in a situation

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<v Speaker 1>where there's been a bit of a flipping in between

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<v Speaker 1>the paradigms which the market is trading. So at the moment,

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<v Speaker 1>we very much see the start of a situation where

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<v Speaker 1>more monetary using is actually seen can be seen as

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<v Speaker 1>a negative, and that we're still stuck in this trap

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<v Speaker 1>of we've now been on significant monetary using since the

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<v Speaker 1>financial crisis, and it's still we're not really managing to

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<v Speaker 1>create get to escape velocity. So that's why now you're

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<v Speaker 1>seeing equities under performing when more easing is announced. Okay,

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<v Speaker 1>so there's the equity side. Let's bring it over to

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<v Speaker 1>your ord the hyper detailed world of short money in

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<v Speaker 1>the kind of bonds flowing within a system. What have

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<v Speaker 1>negative rates done the Lyndraham Taylor's world. Yeah, I mean, well,

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<v Speaker 1>obviously you've seen a significant flattening of the curve associated

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<v Speaker 1>with those negative rates because for a lot of investors,

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<v Speaker 1>negative rates are very unattractive. So you know, although even

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<v Speaker 1>so that's essentially why you've seen a big flattening of

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<v Speaker 1>the curve in Europe. It's just some investors who find

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<v Speaker 1>it very difficult to find negative rates palatable. Um, so yeah,

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<v Speaker 1>the big, the big one is this significant curve flattening.

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<v Speaker 1>Really look at the curves coming down in a negative

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<v Speaker 1>German yield and you wonder the persistency of this. How

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<v Speaker 1>long can we have the vector's negative yields get even

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<v Speaker 1>more negative? Is there a timeline you have to wear? Banks?

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<v Speaker 1>Central banks must act. I think it's difficult to put

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<v Speaker 1>you know, obviously from a girls think in the short

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<v Speaker 1>term banks can wear this from a profitability perspective, but

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<v Speaker 1>in the longer term, the compression, it's the compression of

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<v Speaker 1>the yield curve is obviously particularly bad for banks profitability

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<v Speaker 1>if they're sort of businesses maturity transformation. So the longer

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<v Speaker 1>term perspective, it's not a positive for bank profitsibility and

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<v Speaker 1>it's something that obviously central banks will have an eye on.

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<v Speaker 1>But they are trapped by their mandate in that they are, uh,

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<v Speaker 1>you know, they rely on a certain set of tools

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<v Speaker 1>in order to hit their inflation target, and at the

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<v Speaker 1>moment none of those tools are actually working, but they've

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<v Speaker 1>got to plow on regardless because they've got to try

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<v Speaker 1>and hit their inflation target. That's their soul mandates. So

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<v Speaker 1>whether they actually that you know that much, maybe well

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<v Speaker 1>we'd we'd go maybe a fiscal stimulus is the way

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<v Speaker 1>to go in the Eurozone with increase expending by those

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<v Speaker 1>governments in particular who have room DCB that's not actually

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<v Speaker 1>in their hands, and the structural reform of economies is

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<v Speaker 1>also not in their hands, so they've got to keep

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<v Speaker 1>playing on with the same tools, which at the moment

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<v Speaker 1>um we're seeing a sort of similar pattern to Japan,

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<v Speaker 1>where it's just as flattening, massive flattening of the Yelk

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<v Speaker 1>curve and a push into negative rates while creating no

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<v Speaker 1>real inflation. But there are so responsible for the banking system.

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<v Speaker 1>So if they started, what do they do? Well, I

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<v Speaker 1>guess So so far I've seen no, there's been no

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<v Speaker 1>massive evidence, so obviously a huge impact or at least

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<v Speaker 1>in their own research in the CBS research has not

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<v Speaker 1>been yet a big enough impact on bank profitability for

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<v Speaker 1>them to be too concerned. I guess they could do things,

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<v Speaker 1>some little things, like perhaps make the negative deposit rates

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<v Speaker 1>apply to lower amounts of the central bank reserves, because

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<v Speaker 1>obviously central banker reserves are increasing quite rapidly or roughly

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<v Speaker 1>eighty billion a month while they're doing que However, I mean,

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<v Speaker 1>big picture, even if he did something like that, these

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<v Speaker 1>aren't huge sums of money in banking, like I think,

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<v Speaker 1>you know, might save a billion here, a billion there,

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<v Speaker 1>but that's as a system which isn't huge amounts of money.

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<v Speaker 1>So I guess they, you know, to be honest, the

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<v Speaker 1>ECB are probably in a trying to sit it out

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<v Speaker 1>in hope mode, rather than yet getting too worried about

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<v Speaker 1>the bigger picture for the banks banking system. I guess

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<v Speaker 1>they're thinking, well, this won't according to our inflation forecast,

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<v Speaker 1>it won't go on forever, and we've got to hope

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<v Speaker 1>it doesn't. It's the old Stones line, you know, that

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<v Speaker 1>which can't continue will start um. But as you say that,

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<v Speaker 1>the easy to be really can't stop unless they can

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<v Speaker 1>come to the conclusion that they're not getting anywhere right. Yeah,

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<v Speaker 1>I mean you can already see. It's quite interesting in

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<v Speaker 1>the exact you're exactly right. They've got to keep doing something,

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<v Speaker 1>and you can speak and see in their minutes it's

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<v Speaker 1>quite interesting and that they're already when they're trying to

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<v Speaker 1>Obviously QUI has not been accessful in terms of getting

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<v Speaker 1>the inflation back to target, but where they obviously try

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<v Speaker 1>and see some success in it because versus the counter factual,

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<v Speaker 1>So you know what would have happened if we hadn't

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<v Speaker 1>done anything. So the fact that they're hanging their hat

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<v Speaker 1>on theoretical modeling of the success already shows you that

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<v Speaker 1>you know it's not it's not creating the inflation. They

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<v Speaker 1>wanted to say, let's get out ahead of our one

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<v Speaker 1>PM coverage and give people, namely Michael McKee. One of

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<v Speaker 1>these folks you need to understand is Michael McKee and I,

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<v Speaker 1>as a rule cardinal rule, never share our charts because

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<v Speaker 1>I don't want to tell Michael what to do and

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<v Speaker 1>Mike doesn't want to tell me what to do. Sometimes

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<v Speaker 1>it's comic, you know, we have the same chart and

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<v Speaker 1>it's a waste of time. But I don't know what

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<v Speaker 1>Mike's going to show and the FED show to day,

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<v Speaker 1>and you know what we'll talk about on radio. So

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<v Speaker 1>Lynn my question to you is, I have Janet Yell

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<v Speaker 1>in June six saying a mild undershooting of the unemployment

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<v Speaker 1>rate considered to be normal could help move inflation back

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<v Speaker 1>up to two percent more quickly. Do you have a

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<v Speaker 1>confidence that central bankers can quote unquote move inflation? I

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<v Speaker 1>guess traditionally, you know, a lower, lower unemployer sort of

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<v Speaker 1>running a hot employment sector would have created wage inflation.

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<v Speaker 1>But if you think there's been a structural change to

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<v Speaker 1>the industry where a lack of investment, uh, and it

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<v Speaker 1>basically means that well, and the lack of productivity means

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<v Speaker 1>that work of bargaining power has been significantly reduced, which

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<v Speaker 1>it kind of looks like because there's been wage growth

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<v Speaker 1>is running way well, being quite static and running way

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<v Speaker 1>behind where it did pre crisis. You gotta think that

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<v Speaker 1>even with unemployment right eventually running while they're aiming to

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<v Speaker 1>run it a bit hot, that it's not doesn't look

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<v Speaker 1>yet to help helping them reach their mandate on the

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<v Speaker 1>inflation side. How different is the FED and the ECB,

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<v Speaker 1>and looking at how how determined they have to be

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<v Speaker 1>to reach these mandates, neither one seems to be succeeding.

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<v Speaker 1>I think the the effeter obviously in a slightly more

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<v Speaker 1>comfortable position, purely because inflation is a bit is a

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<v Speaker 1>bit higher, and they're obviously, I guess what they're hoping

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<v Speaker 1>is that ultimately the very low levels of an employment

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<v Speaker 1>they're closer to those being low enough to feed her

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<v Speaker 1>into a wage pressures. And you know, they'll point to

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<v Speaker 1>some evidence in the base book and other sort of

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<v Speaker 1>sort of more idiosyncratic indicators, but certainly, but the the

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<v Speaker 1>cp I guess are in more of a desperation stage

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<v Speaker 1>and that they've come to the party later, and you know,

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<v Speaker 1>they've got sort of probably bigger structural issues than the

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<v Speaker 1>very quickly you're lynn and we'll have you back. Is

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<v Speaker 1>curve flattening signal? The factor is race one up yesterday,

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<v Speaker 1>but we actually got curve flattening. In the United States,

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<v Speaker 1>there is a signal slow economic slowdown or is it

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<v Speaker 1>so noisy now that's got nothing to do with it?

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<v Speaker 1>I think it certainly does signal that people think that

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<v Speaker 1>we're now in more of a new paradigm when it

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<v Speaker 1>comes to what how quickly the U S economy you

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<v Speaker 1>can actually grow going forward? What you know, what you

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<v Speaker 1>nary now? And I think you know, you're probably might

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<v Speaker 1>well see it revised. The offense expectations revised down in

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<v Speaker 1>the top plot this afternoon. I think it does reflect

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<v Speaker 1>this sort of we're in a structural face now, whether

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<v Speaker 1>it's because of aging populations or you know, many other

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<v Speaker 1>factors that played that we are just in the future.

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<v Speaker 1>Let's come back. Lind Graham Taylor with us with Rabble

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<v Speaker 1>Banks this morning and now to check in with Liker

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<v Speaker 1>get the latest world of national headlines my town. Thank

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<v Speaker 1>you very much. French police, along with anti Chrism investigators,

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<v Speaker 1>sent a note to French counterparts about the possible groups.

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<v Speaker 1>Defense Secretary Ash Carter has issued a statement about the U. S.

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<v Speaker 1>officials support the people over Orlando and the LGBT community.

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<v Speaker 1>Britain's Princip William has appeared on the cover of the

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<v Speaker 1>Michael Barr, Mike, Tom, Michael, thanks so much. Appreciate this

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<v Speaker 1>fish is U Five del fishes of this afternoon are

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<v Speaker 1>This is a Bloomberg Business Flash Eric. Good morning. I'm

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<v Speaker 1>John Tucker. Let's say head over to the first word

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<v Speaker 1>breaking news test today for today's morning call. And here's

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<v Speaker 1>Bill Maloney. Good morning, John us. You just are rising

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<v Speaker 1>today without you just currently hire by forty six points.

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<v Speaker 1>SPS gained four and a half end NASAC futures rise

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<v Speaker 1>by eleven. The sp five cash is likely to open

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<v Speaker 1>back above it's fifty day moving average, and the US

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<v Speaker 1>ten yield hits one point six three percent. Shanghai outperformed

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<v Speaker 1>gained point six percent overnight, while Europe is also trading higher.

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<v Speaker 1>Spain rises one point nine percent. The British pound rebounds

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<v Speaker 1>from a two month low on the US Economic Frinday

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<v Speaker 1>rate decision. Another news, Celgon is buying back and added

0:13:19.400 --> 0:13:22.560
<v Speaker 1>three billion in stock and and deal news. Ebex offers

0:13:22.559 --> 0:13:26.679
<v Speaker 1>to buy Patriot National for nine share, also postpones its

0:13:26.760 --> 0:13:29.400
<v Speaker 1>plans for a three for one. Finally, some of Your

0:13:29.400 --> 0:13:33.040
<v Speaker 1>wallsheet upgrades and downgrades. US still raised to neutral versus

0:13:33.080 --> 0:13:35.720
<v Speaker 1>under perform at Bank of America, Best buy into Sorrow,

0:13:35.760 --> 0:13:38.679
<v Speaker 1>cut to neutral over at Create, Swiss, Abercrombie race to

0:13:38.720 --> 0:13:41.720
<v Speaker 1>hold at Deutsche Bank, Cisco cut to neutral versus buy

0:13:41.760 --> 0:13:44.959
<v Speaker 1>over at Goldman Sachs, and Westley Chemical upgraded to buy

0:13:45.120 --> 0:13:47.920
<v Speaker 1>at sun Trust. Live from the First Baking News Desk

0:13:47.960 --> 0:13:50.719
<v Speaker 1>on Bill Maloney, John, all right, thanks Bill, and to

0:13:50.960 --> 0:13:54.560
<v Speaker 1>hear live breaking news over your Bloomberg. Just type squawk

0:13:54.679 --> 0:13:57.520
<v Speaker 1>go and your terminals and that thing is a Bloomberg

0:13:57.840 --> 0:14:02.439
<v Speaker 1>business flash, Tom and Mike. It's thanks so much. Sometimes

0:14:02.679 --> 0:14:04.439
<v Speaker 1>we do a lot of equity coverage. Here you look

0:14:04.440 --> 0:14:07.480
<v Speaker 1>at a bond in this case, it's Semens of Germany

0:14:07.480 --> 0:14:10.920
<v Speaker 1>of financial peace, trading in a massive premium with a

0:14:11.000 --> 0:14:15.679
<v Speaker 1>humongous coupon. You make sixe it's out ten years. That's

0:14:15.679 --> 0:14:19.440
<v Speaker 1>a huge coupon. Trading from one up to one thirty

0:14:19.560 --> 0:14:25.280
<v Speaker 1>one ninety basis points night, not a percentage point above

0:14:25.320 --> 0:14:29.600
<v Speaker 1>treasuries U S treasuries. That's remarkable with us in the

0:14:29.680 --> 0:14:32.960
<v Speaker 1>real world of fixed income. Lynn Graham Taylor as well.

0:14:33.000 --> 0:14:36.280
<v Speaker 1>First of all, folks, Bloomberg surveillance this morning brought you

0:14:36.280 --> 0:14:40.160
<v Speaker 1>by Investco. Don't settle for averaging your portfolio to Investco.

0:14:40.560 --> 0:14:43.560
<v Speaker 1>The right approach means investing with high conviction. Find out

0:14:43.560 --> 0:14:48.280
<v Speaker 1>more it investco dot com slash high Conviction. Lynn Graham

0:14:48.280 --> 0:14:51.160
<v Speaker 1>Taylor with us with Robot Bank. Lynn, I get that

0:14:51.200 --> 0:14:54.240
<v Speaker 1>the banks are buying corporate paper, that the e c

0:14:54.400 --> 0:14:59.280
<v Speaker 1>B is buying Semen and other papers. What happens when

0:14:59.280 --> 0:15:04.640
<v Speaker 1>they decide sell it? Well, I mean I think at

0:15:04.640 --> 0:15:07.480
<v Speaker 1>the moment, there's a commitment by the ECB on all

0:15:07.520 --> 0:15:09.240
<v Speaker 1>of its bond purchases. I think I'm right on the

0:15:09.240 --> 0:15:14.720
<v Speaker 1>couple prints as well too, reinvest the maturing debts and

0:15:14.960 --> 0:15:19.600
<v Speaker 1>coupon and until the foreseeable future. Um, so we're that's

0:15:19.600 --> 0:15:21.880
<v Speaker 1>a long way down the line in terms of when

0:15:21.880 --> 0:15:24.280
<v Speaker 1>they do think about selling it. And I guess the

0:15:24.320 --> 0:15:26.240
<v Speaker 1>hope is a bit like with the US with their

0:15:26.280 --> 0:15:30.560
<v Speaker 1>own decision to currently carry on reinvesting maturing and coupons,

0:15:30.640 --> 0:15:32.960
<v Speaker 1>is that you know, they're hoping that gragedy they'll be

0:15:33.000 --> 0:15:34.640
<v Speaker 1>able to run this down at some point in the

0:15:34.640 --> 0:15:37.680
<v Speaker 1>future when they're when they're growth an inflation mandate of

0:15:37.760 --> 0:15:40.680
<v Speaker 1>what inflation mandate is much closer to target. Make the

0:15:40.760 --> 0:15:46.520
<v Speaker 1>foreseeable future is when I take a vacation. That's never

0:15:46.640 --> 0:15:50.200
<v Speaker 1>going to have a fature, never going to happen. But

0:15:50.280 --> 0:15:53.560
<v Speaker 1>don't don't Europeans have the same problem as the fair

0:15:53.640 --> 0:15:57.040
<v Speaker 1>that going forward to that with liquidity coverage ratio as

0:15:57.120 --> 0:16:02.960
<v Speaker 1>being imposed and banks needing to have more reserves on hand,

0:16:03.720 --> 0:16:07.400
<v Speaker 1>there's no reason and maybe it would be extremely difficult

0:16:07.480 --> 0:16:12.560
<v Speaker 1>for the banks to bring down their balance sheets. Yeah,

0:16:12.560 --> 0:16:15.200
<v Speaker 1>I mean, I think, um, I think on the liquidity

0:16:15.280 --> 0:16:18.760
<v Speaker 1>coverage ratio front, yeah, I mean, broadly speaking, everyone's in compliance.

0:16:18.840 --> 0:16:21.360
<v Speaker 1>There's certainly no reason that people want to buy anymore

0:16:22.120 --> 0:16:28.880
<v Speaker 1>um h l A assets. UM. So you know there

0:16:28.960 --> 0:16:31.920
<v Speaker 1>is this there is probably going to be an ongoing

0:16:32.400 --> 0:16:35.840
<v Speaker 1>but steady demand from banks who are going to but

0:16:36.040 --> 0:16:38.920
<v Speaker 1>I guess, to sell them to to hold onto these assets.

0:16:38.920 --> 0:16:41.440
<v Speaker 1>But the flip side is that when in selling to

0:16:41.480 --> 0:16:44.440
<v Speaker 1>the CB, they get central bank reserves, and central bank

0:16:44.440 --> 0:16:47.240
<v Speaker 1>reserves in excess of your reserve requirement are h l

0:16:47.280 --> 0:16:50.720
<v Speaker 1>A level one. So you know, well and inside a

0:16:50.720 --> 0:16:53.120
<v Speaker 1>lot of cases, the yield that you get on those assets,

0:16:53.120 --> 0:16:55.280
<v Speaker 1>which is i yeald in those cash reserves is minus

0:16:55.280 --> 0:16:59.360
<v Speaker 1>forty is actually higher than the yield in Arsenal piece

0:16:59.400 --> 0:17:01.440
<v Speaker 1>of work we did. In most of the core and

0:17:01.480 --> 0:17:03.800
<v Speaker 1>semi core of the Eurozone, one to five year debt

0:17:04.640 --> 0:17:07.399
<v Speaker 1>has a lower yield the minus minus fourty. Anyway, so

0:17:07.480 --> 0:17:11.440
<v Speaker 1>you're into your in theory, you're really quite ambivalent behind

0:17:11.600 --> 0:17:15.399
<v Speaker 1>between having cast reserves at the ECB or owning or

0:17:15.440 --> 0:17:17.560
<v Speaker 1>owning a government bond when it comes to meeting your

0:17:17.640 --> 0:17:20.800
<v Speaker 1>lcr A SI. The other question for the European Central

0:17:20.840 --> 0:17:23.159
<v Speaker 1>Bank is what are they going to be able to

0:17:23.200 --> 0:17:27.760
<v Speaker 1>buy in this negative interest rate world. You know, especially

0:17:27.760 --> 0:17:31.800
<v Speaker 1>if the German tenure continues to trade negative and goes

0:17:31.840 --> 0:17:34.320
<v Speaker 1>more than forty basis points negative, that takes a huge

0:17:34.400 --> 0:17:36.840
<v Speaker 1>chunk off. I mean, that's a really interesting question because,

0:17:36.880 --> 0:17:39.280
<v Speaker 1>I mean, we just did a back of the envelope

0:17:39.280 --> 0:17:42.600
<v Speaker 1>calculations and you know, we think that if Field were

0:17:42.640 --> 0:17:45.439
<v Speaker 1>to stay where they were, where they are currently, you know,

0:17:45.440 --> 0:17:48.919
<v Speaker 1>they're going to be approaching the running out stage in

0:17:49.000 --> 0:17:51.320
<v Speaker 1>terms of owning thirty three percent of everything that's eligible

0:17:51.320 --> 0:17:54.119
<v Speaker 1>in the sort of maybe turning during the summer, so

0:17:54.200 --> 0:17:57.520
<v Speaker 1>maybe July or August. Obviously yields can change in the

0:17:57.640 --> 0:18:00.080
<v Speaker 1>devening period, but at some point they're going to have

0:18:00.080 --> 0:18:02.879
<v Speaker 1>a thairty major decision as to whether potentially abandoning the

0:18:02.880 --> 0:18:06.840
<v Speaker 1>capital key will be difficult. In the last minute, we've

0:18:06.840 --> 0:18:09.560
<v Speaker 1>got to start the show and catch up on this again.

0:18:09.880 --> 0:18:13.280
<v Speaker 1>You just said, with the way cash flows are now,

0:18:13.920 --> 0:18:16.719
<v Speaker 1>they will own a third of the debt by when

0:18:18.119 --> 0:18:22.280
<v Speaker 1>of eligible debt by the end of the summer. So

0:18:22.320 --> 0:18:26.399
<v Speaker 1>maybe July August Mica did not know that that it was.

0:18:28.160 --> 0:18:32.679
<v Speaker 1>It was years they had now yielding below the deposit

0:18:32.800 --> 0:18:37.040
<v Speaker 1>rate basically on the Germans front. Yeah, it's it's an

0:18:37.240 --> 0:18:40.200
<v Speaker 1>enormous amount, and they have this thirty three ceiling so

0:18:40.280 --> 0:18:42.200
<v Speaker 1>that they did not know that they are they're running

0:18:42.200 --> 0:18:44.640
<v Speaker 1>into trouble. So how did they conduct terry palsy? They

0:18:44.680 --> 0:18:47.639
<v Speaker 1>basically have to give up one of the tenants, as

0:18:47.720 --> 0:18:51.560
<v Speaker 1>you mentioned, perhaps the capital key you've got, You've got

0:18:51.560 --> 0:18:54.000
<v Speaker 1>the options, you think the capital y is a huge

0:18:54.040 --> 0:18:57.680
<v Speaker 1>from a political hurdle perspective, is pretty massive. You've also

0:18:57.720 --> 0:19:00.439
<v Speaker 1>got the posentials to buy more than thirty three worry

0:19:00.520 --> 0:19:03.040
<v Speaker 1>less about they don't want to hold this sort of

0:19:03.400 --> 0:19:06.840
<v Speaker 1>blocking majority. But maybe they'll decide there's a way they

0:19:06.880 --> 0:19:09.000
<v Speaker 1>can get around that as well. But yeah, it look

0:19:09.200 --> 0:19:11.800
<v Speaker 1>you know, as things currently stand, it looks like they'll

0:19:11.800 --> 0:19:14.919
<v Speaker 1>have to make a fairly major decision towards the end

0:19:14.960 --> 0:19:16.640
<v Speaker 1>of the summer, and no doubt the market will push

0:19:16.720 --> 0:19:18.639
<v Speaker 1>them in, you know, kind of push them into that

0:19:18.680 --> 0:19:21.199
<v Speaker 1>as well. There's a few options, none of rich are

0:19:21.240 --> 0:19:24.000
<v Speaker 1>very palatable. This is not going to be a boring

0:19:24.040 --> 0:19:26.440
<v Speaker 1>summer time. You know, I said that, I haven't said

0:19:26.600 --> 0:19:29.640
<v Speaker 1>lin Lynn Graham Taylor, thank you so much. With robo

0:19:29.680 --> 0:19:33.399
<v Speaker 1>bank exceptionally valuable. I'm putting this out on Twitter right now.

0:19:33.480 --> 0:19:37.080
<v Speaker 1>Mike and I have a concert on Twitter. Tom keenan economy. Mike.

0:19:37.320 --> 0:19:41.840
<v Speaker 1>I usually panic about July June five, about there will

0:19:41.880 --> 0:19:43.800
<v Speaker 1>be no news flow this summer. You and I will

0:19:43.840 --> 0:19:46.480
<v Speaker 1>come in and have nothing to talk about. I can

0:19:46.520 --> 0:19:49.240
<v Speaker 1>assure you, Mike, I do not have that panic this year.

0:19:50.480 --> 0:19:55.680
<v Speaker 1>I just don't. Yeah. Next week, but FED meeting one

0:19:55.720 --> 0:20:00.119
<v Speaker 1>PMC afternoon next week. Francine Lacroix, John Ferrell, Michael McKee in,

0:20:00.200 --> 0:20:03.600
<v Speaker 1>Tom Keane in London. You will join us all next

0:20:03.640 --> 0:20:07.760
<v Speaker 1>week coming up there with all due respect. Highlight brought

0:20:07.760 --> 0:20:09.320
<v Speaker 1>to you by land Rover. If it's in your natric

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<v Speaker 1>Discovery Sport was built to help your search. Visit land

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