1 00:00:00,160 --> 00:00:03,400 Speaker 1: Let's go to Welcome to the Bloomberg Markets podcast sweet 2 00:00:03,520 --> 00:00:09,120 Speaker 1: alongside every business day we bring you interview CEO, market 3 00:00:09,200 --> 00:00:14,840 Speaker 1: crows and Bloomberg experts, along with the Springwhelming the Bloomberg 4 00:00:14,880 --> 00:00:18,600 Speaker 1: MarketCast podcast or wherever you listen to podcast and at 5 00:00:18,600 --> 00:00:22,320 Speaker 1: Bloomberg dot com Splash podcast. Very positive and very right 6 00:00:22,400 --> 00:00:25,160 Speaker 1: on this story since day one. He's viewed it as 7 00:00:25,200 --> 00:00:27,560 Speaker 1: a tech story, not a metal bending story per se, 8 00:00:27,560 --> 00:00:30,200 Speaker 1: and he's been absolutely right. Dan, what was your takeaway 9 00:00:30,240 --> 00:00:34,920 Speaker 1: from your time down in Austin. Look, I think Paul, 10 00:00:35,000 --> 00:00:37,960 Speaker 1: with these as well as Apple events, I think investors 11 00:00:38,000 --> 00:00:40,440 Speaker 1: always want more meat on the boat. You know, obviously 12 00:00:41,159 --> 00:00:44,520 Speaker 1: they lead the groundwork for what I've used a flex 13 00:00:44,600 --> 00:00:48,800 Speaker 1: to muscles type of event from a scale and scoope 14 00:00:48,920 --> 00:00:51,159 Speaker 1: in terms of what they're doing on evs. But you 15 00:00:51,159 --> 00:00:54,240 Speaker 1: didn't have a sub thirty k vehicle introduced. I think 16 00:00:54,360 --> 00:00:56,720 Speaker 1: that's still to come, but I think they read the 17 00:00:56,720 --> 00:00:59,480 Speaker 1: groundwork for it. Stock was so off knee jerk and 18 00:00:59,600 --> 00:01:03,280 Speaker 1: now becomes a sort of what's the next step on 19 00:01:03,320 --> 00:01:08,520 Speaker 1: this roadmap? I mean, Dan, you know that I feel 20 00:01:08,520 --> 00:01:12,280 Speaker 1: like their design and vehicles are just too long in 21 00:01:12,280 --> 00:01:15,000 Speaker 1: the tooth. I mean they Matt Winkler has had his 22 00:01:15,040 --> 00:01:18,520 Speaker 1: models for more than a decade, wow, which says a 23 00:01:18,600 --> 00:01:22,200 Speaker 1: lot about the quality of the vehicles, and I'm not 24 00:01:22,280 --> 00:01:26,959 Speaker 1: debating that, but it's just tired and they all look 25 00:01:26,959 --> 00:01:30,200 Speaker 1: alike except for the cyber truck, which is I guess what, 26 00:01:30,400 --> 00:01:34,959 Speaker 1: three years late now. So at what point does Elon 27 00:01:35,040 --> 00:01:39,360 Speaker 1: Musk stop fooling around with Twitter and start like working 28 00:01:39,400 --> 00:01:45,000 Speaker 1: on progress at his car company. Look, I think you 29 00:01:45,319 --> 00:01:48,560 Speaker 1: hit the nail on the head relative to competition increasing, 30 00:01:49,400 --> 00:01:51,920 Speaker 1: and you won't how sort of come out with more models. 31 00:01:52,200 --> 00:01:55,080 Speaker 1: I think they've the first time admitted they're going to 32 00:01:55,160 --> 00:01:59,480 Speaker 1: need basically ten models for the long term, and now 33 00:01:59,480 --> 00:02:01,720 Speaker 1: it's about when do they come out? What do they 34 00:02:01,760 --> 00:02:05,080 Speaker 1: look like? Look, I personally believe, based on our work, 35 00:02:05,200 --> 00:02:07,440 Speaker 1: sub thirty k is going to be the key from 36 00:02:07,440 --> 00:02:11,320 Speaker 1: a cheaper vehicle as well as an suv like Tessler. 37 00:02:11,400 --> 00:02:15,320 Speaker 1: I think that's really from a mass market, which streets 38 00:02:15,360 --> 00:02:18,720 Speaker 1: open to focus on and clearly, look cybertruck. A year 39 00:02:18,720 --> 00:02:21,280 Speaker 1: from now you'll see cybertrucks around and that I mean 40 00:02:21,440 --> 00:02:24,799 Speaker 1: there was Deliveries should be by your early next year, 41 00:02:25,400 --> 00:02:27,440 Speaker 1: but that's not going to move the needle from a 42 00:02:27,560 --> 00:02:30,880 Speaker 1: mass perspective, and that's why this is so important. From 43 00:02:30,960 --> 00:02:33,600 Speaker 1: sub thirty K, Well, they just need to look since 44 00:02:33,760 --> 00:02:36,839 Speaker 1: the model S was introduced, the nine to eleven has 45 00:02:36,840 --> 00:02:41,959 Speaker 1: had four model changes, okay, and today's models doesn't look 46 00:02:42,040 --> 00:02:45,079 Speaker 1: any different than it did ten years ago. It still 47 00:02:45,120 --> 00:02:47,799 Speaker 1: looks great. I think, if you I'm going to carve 48 00:02:47,919 --> 00:02:49,880 Speaker 1: myself never that into it. But I just feel like 49 00:02:50,000 --> 00:02:53,480 Speaker 1: they need to. You know, if Mercedes or if BMW 50 00:02:54,120 --> 00:02:58,040 Speaker 1: hadn't changed their design language in over a decade, it 51 00:02:58,080 --> 00:03:00,359 Speaker 1: would be a real problem. Why is it okay for 52 00:03:00,440 --> 00:03:03,760 Speaker 1: this company? I think it's because when you think an 53 00:03:03,800 --> 00:03:07,040 Speaker 1: electric vehicles right now, it's still Tesla's world. Everyone else 54 00:03:07,120 --> 00:03:10,320 Speaker 1: paid in terms of the EV space. They know there's 55 00:03:10,320 --> 00:03:15,320 Speaker 1: an opportunity let's call it three million vehicles in terms 56 00:03:15,360 --> 00:03:19,120 Speaker 1: of how they get they just hit there four millions 57 00:03:19,160 --> 00:03:22,560 Speaker 1: in terms of deliveries. So they've really obviously crushed in 58 00:03:22,720 --> 00:03:25,960 Speaker 1: terms of this initial sort of you know, growth area. 59 00:03:26,080 --> 00:03:28,360 Speaker 1: But now it's the next phase of the growth story, 60 00:03:28,440 --> 00:03:32,120 Speaker 1: and I think it's all about costs. It's all about efficiencies. 61 00:03:32,520 --> 00:03:35,400 Speaker 1: They can lower by forty fifty percent in terms of 62 00:03:35,480 --> 00:03:37,560 Speaker 1: what they're talking about. Then all of a sudden, you 63 00:03:37,640 --> 00:03:42,440 Speaker 1: start to have a twenty twenty eight k Tessla out there. Hey, Dan, 64 00:03:42,600 --> 00:03:43,960 Speaker 1: you know, one of the most read stories on the 65 00:03:44,040 --> 00:03:46,480 Speaker 1: terminal today is about Elon mush not surprisingly, but it's 66 00:03:46,480 --> 00:03:48,960 Speaker 1: about his use of his private plane and he's flown 67 00:03:49,160 --> 00:03:52,760 Speaker 1: the most among some of the richest billionaires AND's and 68 00:03:52,840 --> 00:03:54,720 Speaker 1: it's really spiked up after he bought Twitter. But it 69 00:03:54,840 --> 00:03:57,000 Speaker 1: just goes to the point he's got so many different 70 00:03:57,040 --> 00:04:00,320 Speaker 1: companies in so many different businesses and I'm wondering in 71 00:04:00,440 --> 00:04:03,000 Speaker 1: Austin at the investor date to what extent was that 72 00:04:03,160 --> 00:04:06,720 Speaker 1: brought up or addressed by him or by investors that Hey, Elon, 73 00:04:06,800 --> 00:04:08,800 Speaker 1: can you focus on where the real money is, which 74 00:04:08,880 --> 00:04:13,640 Speaker 1: is Tesla. Look, I think there's definitely questions around that 75 00:04:14,000 --> 00:04:17,720 Speaker 1: and nothing on Twitter. I think that's something that started 76 00:04:17,760 --> 00:04:20,880 Speaker 1: to go more into the background. But you're starting to 77 00:04:20,960 --> 00:04:23,960 Speaker 1: see more, you know what I'd say, Ben Strength, you know, 78 00:04:24,320 --> 00:04:26,600 Speaker 1: Tom Zoo and two Mothers are starting to come up 79 00:04:26,960 --> 00:04:30,640 Speaker 1: in terms of the TESTA organization. I believe he's been 80 00:04:30,680 --> 00:04:34,200 Speaker 1: able to balance it well, but no doubt you're starting 81 00:04:34,279 --> 00:04:36,480 Speaker 1: to see, you know, a must ask pay more and 82 00:04:36,560 --> 00:04:39,840 Speaker 1: more attention to some of these next steps with Tessa 83 00:04:40,160 --> 00:04:43,840 Speaker 1: with SpaceX, and I think that continues to be a 84 00:04:44,000 --> 00:04:47,960 Speaker 1: source subject for investors for you know what I've used 85 00:04:47,960 --> 00:04:51,280 Speaker 1: probably with the most fouled individual in the world. What 86 00:04:51,360 --> 00:04:54,600 Speaker 1: do you think about I saw a Lucid on the 87 00:04:54,680 --> 00:04:58,160 Speaker 1: road yesterday. Barely see any of those. I saw Rivian 88 00:04:58,720 --> 00:05:01,960 Speaker 1: parked by the scars Dale train station. They look sweet, 89 00:05:02,080 --> 00:05:05,000 Speaker 1: but they're really disappointing in terms of their ability to 90 00:05:05,080 --> 00:05:08,960 Speaker 1: ramp up production. Faraday whatever it's called. I still have 91 00:05:09,120 --> 00:05:12,320 Speaker 1: never seen one of those Pollstar, Yeah, Pollstar, but that's 92 00:05:12,400 --> 00:05:14,480 Speaker 1: Volvo right, So okay, I mean, what do you think 93 00:05:14,520 --> 00:05:17,520 Speaker 1: about these electric vehicle startups that we all had such 94 00:05:17,600 --> 00:05:19,520 Speaker 1: high hopes for it and everybody bet up the stock 95 00:05:19,560 --> 00:05:23,600 Speaker 1: initially and now have just been in disappointment after disappointment. 96 00:05:23,640 --> 00:05:26,840 Speaker 1: Are they going to come back? Are they going to survive? Look? 97 00:05:26,880 --> 00:05:29,520 Speaker 1: I think it's a great comparison what we saw yesterday. 98 00:05:29,600 --> 00:05:32,440 Speaker 1: I mean, Tessa flexes the muscles has the scale. You're 99 00:05:32,440 --> 00:05:35,280 Speaker 1: going to see GM doing the same thing coming at 100 00:05:35,360 --> 00:05:37,840 Speaker 1: the three one through Ari quoter on what's forward. But 101 00:05:38,040 --> 00:05:42,680 Speaker 1: these startups, it is so difficult to scale and so expensive, 102 00:05:42,880 --> 00:05:46,160 Speaker 1: and in a risingry environment that's tougher and tougher, so 103 00:05:46,240 --> 00:05:48,800 Speaker 1: we're going to survive. Some are not. And I think 104 00:05:48,800 --> 00:05:51,719 Speaker 1: it also just shows the dog ain't the homework excuse 105 00:05:51,880 --> 00:05:55,440 Speaker 1: like we've seen Rithian others. It just doesn't work in 106 00:05:55,520 --> 00:06:00,120 Speaker 1: this market where the dream quoter unquotter story stocks are 107 00:06:00,200 --> 00:06:02,680 Speaker 1: no longer. I thought r J. Scaringe was gonna kill it. 108 00:06:02,800 --> 00:06:04,839 Speaker 1: He took like a decade to bring out the truck, 109 00:06:05,720 --> 00:06:09,240 Speaker 1: and now, I mean, fifty thousand is all they're gonna 110 00:06:09,279 --> 00:06:11,560 Speaker 1: make in twenty twenty three. If I ordered one of 111 00:06:11,560 --> 00:06:13,400 Speaker 1: those and I'm on a two year waiting list that 112 00:06:13,520 --> 00:06:15,840 Speaker 1: just went to three years, I'm gonna be super disappointed. 113 00:06:16,480 --> 00:06:19,280 Speaker 1: I mean, it has been up there from a disappointment 114 00:06:19,400 --> 00:06:21,440 Speaker 1: with riving and trooms out of gate given r J 115 00:06:21,680 --> 00:06:24,480 Speaker 1: and you know everything we saw from him pre IPO 116 00:06:25,320 --> 00:06:28,000 Speaker 1: up there with you know, maybe Zach Wilson and some 117 00:06:28,200 --> 00:06:31,920 Speaker 1: other disappointments, it's been very, very frustrating for industris. Hey, Dan, 118 00:06:32,000 --> 00:06:35,039 Speaker 1: just real quick, thirty seconds your time in Austin. What's 119 00:06:35,040 --> 00:06:38,840 Speaker 1: the number one question you heard from institutional investors? Well, 120 00:06:38,839 --> 00:06:44,040 Speaker 1: I think today the big focus is, Okay, what does 121 00:06:44,240 --> 00:06:48,080 Speaker 1: ultimately the timeline look like to get efficiencies down? And 122 00:06:48,440 --> 00:06:51,640 Speaker 1: is the China growth story, continuing to ram push price cuts. 123 00:06:51,760 --> 00:06:55,239 Speaker 1: Everyone's focused on price cuts in China. What the demand 124 00:06:55,320 --> 00:06:58,840 Speaker 1: story looks like. We continue believe that that's robust. But again, 125 00:06:59,160 --> 00:07:03,000 Speaker 1: haters continue the heat on task with that good stuff. 126 00:07:03,000 --> 00:07:04,919 Speaker 1: All right, Dan Ives, thanks so much for joining us. 127 00:07:04,960 --> 00:07:09,040 Speaker 1: Appreciate getting your perspective as always on Tesla and on 128 00:07:09,240 --> 00:07:12,320 Speaker 1: all things technology. Again, Tesla stock off about five percent 129 00:07:12,440 --> 00:07:14,840 Speaker 1: here to a little bit disappointing as you read some 130 00:07:14,920 --> 00:07:16,520 Speaker 1: of the research and some of the reporting, just that 131 00:07:16,600 --> 00:07:19,480 Speaker 1: there wasn't more color as Dan was suggesting on some 132 00:07:19,600 --> 00:07:23,200 Speaker 1: of the newer models that just kind of more to come. 133 00:07:23,560 --> 00:07:25,440 Speaker 1: So you kind of have to just kind of believe 134 00:07:25,480 --> 00:07:28,000 Speaker 1: in Elon and that's been the story for a long 135 00:07:28,080 --> 00:07:33,400 Speaker 1: period of time. Dan I has from web Bush. Let's 136 00:07:33,440 --> 00:07:37,080 Speaker 1: get to our c suite conversation. We're talking insurance, Juan Andre, 137 00:07:37,360 --> 00:07:40,120 Speaker 1: is that that thing to do? That? Right? Thank you? 138 00:07:40,160 --> 00:07:42,760 Speaker 1: We want to draw a CEO of Everest. There's an end. 139 00:07:44,000 --> 00:07:46,160 Speaker 1: There's not on my list my sheet. It's just because 140 00:07:49,440 --> 00:07:52,320 Speaker 1: thank you. Okay. The most important thing the names I 141 00:07:52,440 --> 00:07:54,600 Speaker 1: care about the New York stock chame symbol stock symbol 142 00:07:54,800 --> 00:07:57,480 Speaker 1: R E go. We'll get you there. And this is 143 00:07:57,480 --> 00:07:59,480 Speaker 1: a stock that's done really well. So we want to 144 00:07:59,480 --> 00:08:02,680 Speaker 1: talk to one on here. He's also what a name, Yeah, 145 00:08:04,440 --> 00:08:05,960 Speaker 1: got out to you all right, So this is an 146 00:08:06,000 --> 00:08:08,600 Speaker 1: insurance company. Tell us about Everst, tell us about what 147 00:08:08,840 --> 00:08:10,280 Speaker 1: you do, and then we'll get into some of the 148 00:08:10,800 --> 00:08:12,640 Speaker 1: you know, the growth drivers. The challenge is that type 149 00:08:12,640 --> 00:08:15,480 Speaker 1: of thing. Yeah, No, absolutely, Paul, pleasure to be here. Look, 150 00:08:15,560 --> 00:08:18,000 Speaker 1: Everest is what we call a hybrid company. We have 151 00:08:18,160 --> 00:08:22,080 Speaker 1: both reinsurance business and an insurance business. You know, we 152 00:08:22,240 --> 00:08:24,360 Speaker 1: trade in the New York Stock Exchange, part of the 153 00:08:24,480 --> 00:08:28,120 Speaker 1: SMP five hundred, and we have done exceedingly well over 154 00:08:28,160 --> 00:08:29,840 Speaker 1: the last few years. As a matter of fact, I've 155 00:08:29,880 --> 00:08:33,480 Speaker 1: been the CEO since January first of twenty twenty, and 156 00:08:33,640 --> 00:08:36,719 Speaker 1: we've grown the reinsurance business about fifty five percent in 157 00:08:36,800 --> 00:08:39,920 Speaker 1: that period of time. January first, twenty twenty. Time to 158 00:08:40,000 --> 00:08:43,040 Speaker 1: take over a Yeah, it's a wonderful time. You must 159 00:08:43,040 --> 00:08:45,400 Speaker 1: have taken off your tie and marchin, unbutton your top 160 00:08:45,760 --> 00:08:48,320 Speaker 1: like I need to breathe a little bit. Yeah, Well, 161 00:08:48,440 --> 00:08:50,640 Speaker 1: realistically I was only out of the office for a 162 00:08:50,720 --> 00:08:52,439 Speaker 1: couple of months and then I was back all in. 163 00:08:52,679 --> 00:08:54,800 Speaker 1: But it goes back to the story, right, because I 164 00:08:54,880 --> 00:08:57,000 Speaker 1: think we've done a very nice job managing the company 165 00:08:57,040 --> 00:08:59,000 Speaker 1: through all of these challenges. And you know, to what 166 00:08:59,080 --> 00:09:01,200 Speaker 1: I was saying, it's not only the growth of fifty 167 00:09:01,280 --> 00:09:03,600 Speaker 1: six in our reinsurance business over that period of time 168 00:09:03,880 --> 00:09:06,760 Speaker 1: over sixty in our primary business, but the stock price 169 00:09:06,840 --> 00:09:09,439 Speaker 1: has gone up about forty percent since I started in 170 00:09:09,520 --> 00:09:12,440 Speaker 1: twenty twenty, so the company has done well. So yeah, 171 00:09:12,480 --> 00:09:14,360 Speaker 1: I mean I usually look at a comp screen, as 172 00:09:14,400 --> 00:09:17,880 Speaker 1: our listeners know, to see how you've done over a 173 00:09:18,000 --> 00:09:22,439 Speaker 1: five year period. You've outperformed over that period, but I'll 174 00:09:22,480 --> 00:09:26,480 Speaker 1: put in you know, your starting date still massively outperformed 175 00:09:26,520 --> 00:09:28,760 Speaker 1: not only the S and P five hundred, but also 176 00:09:29,000 --> 00:09:31,760 Speaker 1: the financial sector. Why do you think it is that 177 00:09:31,840 --> 00:09:35,520 Speaker 1: you're doing so much better than the benchmarks? Yeah, No, Look, 178 00:09:35,559 --> 00:09:37,320 Speaker 1: I think it's a few things. Number One, I think 179 00:09:37,360 --> 00:09:39,360 Speaker 1: we've got a world class team. We've put together a 180 00:09:39,520 --> 00:09:42,800 Speaker 1: very clear strategy, and we have been relentless about executing 181 00:09:42,840 --> 00:09:44,719 Speaker 1: against that strategy. So I think those are sort of 182 00:09:44,720 --> 00:09:47,040 Speaker 1: the key elements that we have. In addition to that, 183 00:09:47,160 --> 00:09:49,200 Speaker 1: we've also had a good market, you know, and that's 184 00:09:49,320 --> 00:09:51,720 Speaker 1: one of the things that it's important to talk about today. 185 00:09:52,200 --> 00:09:55,319 Speaker 1: It's the fact that in the reinsurance market particularly, we 186 00:09:55,480 --> 00:09:58,559 Speaker 1: have a one in a generation type opportunity. There's a 187 00:09:58,679 --> 00:10:01,679 Speaker 1: secular supply and demand to balance that's taking place right now, 188 00:10:02,000 --> 00:10:04,719 Speaker 1: and we're uniquely positioned to take advantage of that. And 189 00:10:04,800 --> 00:10:06,600 Speaker 1: so all of that together, I think, is what's led 190 00:10:06,640 --> 00:10:09,600 Speaker 1: to that outperformance. We're making a big deal on Bloomberg 191 00:10:09,600 --> 00:10:11,880 Speaker 1: Gradi on television today about the rise in interest rates, 192 00:10:11,960 --> 00:10:15,199 Speaker 1: the ten year Treasury now above four percent. How does 193 00:10:15,240 --> 00:10:18,319 Speaker 1: that impact your business a rising interest rate environment? Yeah, 194 00:10:18,320 --> 00:10:22,280 Speaker 1: absolutely so. By definition, because we're a reinsurance insurance company, 195 00:10:22,360 --> 00:10:25,840 Speaker 1: we tend to invest in very conservative investments, mostly fixed income, 196 00:10:26,160 --> 00:10:29,480 Speaker 1: so that really does translate to our portfolio yield increasing. 197 00:10:29,800 --> 00:10:32,240 Speaker 1: So that's generally a good thing for us. Yeah. I 198 00:10:32,320 --> 00:10:35,080 Speaker 1: mean last year the SMP was down twenty percent and change. 199 00:10:35,080 --> 00:10:39,920 Speaker 1: You are up twenty percent and change. Is that Is 200 00:10:40,000 --> 00:10:41,920 Speaker 1: that kind of outperformance going to stick if we have 201 00:10:42,000 --> 00:10:43,959 Speaker 1: a recession? What happens to your business if we go 202 00:10:44,040 --> 00:10:46,760 Speaker 1: into a serious recession? Yeah, Matt. Look, we tend to 203 00:10:46,880 --> 00:10:50,719 Speaker 1: be essentially a safe port in a recession, and the 204 00:10:50,800 --> 00:10:54,000 Speaker 1: reason for that is businesses can't do their job without 205 00:10:54,040 --> 00:10:57,720 Speaker 1: our products, right, You can't run a company without general liability, insurance, 206 00:10:57,760 --> 00:11:01,240 Speaker 1: property insurance, directors and officers liability, and particularly in the 207 00:11:01,320 --> 00:11:04,200 Speaker 1: heightened risk environment that you have today, demand for our 208 00:11:04,240 --> 00:11:06,600 Speaker 1: products is at an all time high. So for us, 209 00:11:06,760 --> 00:11:09,640 Speaker 1: a recession is actually an opportunity for us to continue 210 00:11:09,640 --> 00:11:14,079 Speaker 1: to grow. So are there sectors of the economy or 211 00:11:14,240 --> 00:11:15,920 Speaker 1: let's put it this way, where do you guys focus 212 00:11:16,040 --> 00:11:17,959 Speaker 1: What are some of the sectors that you guys have 213 00:11:18,320 --> 00:11:20,800 Speaker 1: exposure to or want to have exposure to. Yeah, so 214 00:11:20,960 --> 00:11:24,120 Speaker 1: we're very well diversified both in reinsurance and insurance, and 215 00:11:24,240 --> 00:11:28,760 Speaker 1: that's really across industries, geography's product lines, et cetera. That 216 00:11:28,880 --> 00:11:31,400 Speaker 1: gives us the ability to look at particular aspects of 217 00:11:31,760 --> 00:11:33,920 Speaker 1: the economy and say, this is an area where we 218 00:11:33,960 --> 00:11:35,800 Speaker 1: see a lot of opportunity and we want to play. 219 00:11:36,080 --> 00:11:38,839 Speaker 1: For instance, property right now is a terrific area for 220 00:11:38,960 --> 00:11:41,640 Speaker 1: us to play. Areas that we're watching more closely are 221 00:11:41,720 --> 00:11:46,240 Speaker 1: credit credit related lines, things like mortgage surety, etcetera, etcetera. 222 00:11:46,280 --> 00:11:47,439 Speaker 1: Because we don't know if there's going to be a 223 00:11:47,520 --> 00:11:50,720 Speaker 1: credit cycle beyond some of this, how do you guys 224 00:11:50,800 --> 00:11:54,240 Speaker 1: really compete against Again, we'd look about the stock Matt 225 00:11:54,240 --> 00:11:55,800 Speaker 1: and now we always focus on stocks. If you get 226 00:11:55,800 --> 00:11:58,120 Speaker 1: a snapshot of how companies are doing over a period 227 00:11:58,120 --> 00:12:00,640 Speaker 1: of time, talk to us about your competition. Sure, it 228 00:12:00,720 --> 00:12:03,160 Speaker 1: really does vary whether it's reinsurance or insurance. On the 229 00:12:03,200 --> 00:12:07,520 Speaker 1: reinsurance side, we compete against Munich re, Swiss re hanover Re, 230 00:12:07,960 --> 00:12:09,760 Speaker 1: and then some of the other Bermuda companies, some of 231 00:12:09,800 --> 00:12:12,800 Speaker 1: the smaller ones. On the primary side, we're competing against 232 00:12:12,880 --> 00:12:18,160 Speaker 1: chob aig Acca, Alliance, Zurich. Those are some of the competitors. 233 00:12:18,400 --> 00:12:22,520 Speaker 1: How come those the res are all German speaking, Munich, 234 00:12:22,600 --> 00:12:25,080 Speaker 1: re hanover Re, those are all a very small part 235 00:12:25,160 --> 00:12:30,720 Speaker 1: of the middle of Europe. Why is reinsurance so concentrated there? Yeah, 236 00:12:30,720 --> 00:12:33,719 Speaker 1: I think historically a lot of the large global reinsurers 237 00:12:33,760 --> 00:12:35,880 Speaker 1: did come out of the continent of Europe, but their 238 00:12:35,920 --> 00:12:39,520 Speaker 1: worldwide right. Their home offices may be in Munich or Zurich, 239 00:12:39,880 --> 00:12:41,880 Speaker 1: but they're really worldwide players. But I think a lot 240 00:12:41,920 --> 00:12:43,679 Speaker 1: of it was just their history and a lot of 241 00:12:43,720 --> 00:12:46,000 Speaker 1: opportunity in the continent of Europe when they first started. 242 00:12:46,160 --> 00:12:48,040 Speaker 1: So what do you do? Why are we not interviewing 243 00:12:48,120 --> 00:12:51,840 Speaker 1: him in Bermuda? We should? That was are you actually headquarter? 244 00:12:52,320 --> 00:12:54,559 Speaker 1: You literally live in Bermuda. Now I go back and 245 00:12:54,640 --> 00:12:57,400 Speaker 1: forth to Bermuda. Our company is headquartered in Bermuda. Yes, 246 00:12:58,360 --> 00:13:02,600 Speaker 1: we know a guy in Bermuda. There's and he went 247 00:13:02,640 --> 00:13:04,840 Speaker 1: to Johns Hopkins as Yes, we've got your masters at 248 00:13:04,920 --> 00:13:07,360 Speaker 1: Johns Hopkins right international, we could tie all in. So 249 00:13:07,440 --> 00:13:11,280 Speaker 1: do you focus your business because you studied international studies. 250 00:13:11,679 --> 00:13:17,199 Speaker 1: You've been recognized by Latino Leaders magazine for your contributions. 251 00:13:18,600 --> 00:13:21,080 Speaker 1: You had Latin American studies also as part of your masters, 252 00:13:21,600 --> 00:13:24,679 Speaker 1: do you focus on a global business or as your 253 00:13:24,720 --> 00:13:27,320 Speaker 1: business really focused in the US Now? Our our business 254 00:13:27,440 --> 00:13:29,640 Speaker 1: is totally global. So if I think about it from 255 00:13:29,720 --> 00:13:32,320 Speaker 1: the reinsurance side, I have customers in a one hundred 256 00:13:32,320 --> 00:13:34,520 Speaker 1: and fifteen countries around the world. That makes sense. We 257 00:13:34,600 --> 00:13:36,839 Speaker 1: are the seventh largest reinsurer in the world, so we 258 00:13:37,200 --> 00:13:39,439 Speaker 1: pray a significant role in all of that. On the 259 00:13:39,520 --> 00:13:42,280 Speaker 1: primary side, we're in the middle of expanding our business 260 00:13:42,400 --> 00:13:45,640 Speaker 1: from North America also into other countries. So matter of fact, 261 00:13:45,720 --> 00:13:51,120 Speaker 1: we just opened up offices in Santiago, Dusseldorf, Paris, Madrid, 262 00:13:51,280 --> 00:13:54,760 Speaker 1: Singapore and in this year we have additional expansion to 263 00:13:54,920 --> 00:13:58,280 Speaker 1: go as well. So this leads to my question about growth. 264 00:13:59,360 --> 00:14:01,240 Speaker 1: What's your plan and look like, say a five year 265 00:14:01,320 --> 00:14:03,199 Speaker 1: plan for growth from here? Are you going to do 266 00:14:03,320 --> 00:14:09,360 Speaker 1: it organically? Are you? We talked to pack Allaghory yesterday 267 00:14:09,760 --> 00:14:12,920 Speaker 1: and he's done a lot of it by buying other companies. 268 00:14:13,200 --> 00:14:15,560 Speaker 1: What does it look like Foreverest. Yeah, for us, it's 269 00:14:15,600 --> 00:14:17,840 Speaker 1: really more of an organic build and we have been 270 00:14:17,960 --> 00:14:20,280 Speaker 1: very successful. I mean the growth numbers that I quoted 271 00:14:20,360 --> 00:14:23,760 Speaker 1: earlier in our discussion, we're all organic based. And I'll 272 00:14:23,800 --> 00:14:27,480 Speaker 1: give you an example. So in the reinsurance business, January 273 00:14:27,600 --> 00:14:30,400 Speaker 1: first is where the majority of your renewals take place. 274 00:14:30,480 --> 00:14:33,360 Speaker 1: So we secured over fifty percent of our portfolio on 275 00:14:33,520 --> 00:14:36,760 Speaker 1: January one in an environment good number. That's a very 276 00:14:36,800 --> 00:14:39,920 Speaker 1: good nub because my analyst, Matthew Palazzola, that's his question, 277 00:14:40,280 --> 00:14:42,680 Speaker 1: ask him how the January one renewals went. Yeah, No, 278 00:14:42,760 --> 00:14:45,240 Speaker 1: it's it's it's a it's a very Over fifty percent 279 00:14:45,280 --> 00:14:47,480 Speaker 1: of your portfolio being secured in this January one is 280 00:14:47,480 --> 00:14:49,840 Speaker 1: a very good number because what we saw is that 281 00:14:49,960 --> 00:14:52,240 Speaker 1: once in a generation opportunity that I was telling you about, 282 00:14:52,600 --> 00:14:56,280 Speaker 1: pricing for property catastrophe went up fifty percent in January one. 283 00:14:56,600 --> 00:15:00,160 Speaker 1: In the US, it went up forty percent internationally, so 284 00:15:00,280 --> 00:15:02,440 Speaker 1: we were able to secure over fifty percent of our 285 00:15:02,520 --> 00:15:06,200 Speaker 1: portfolio at much better pricing, much better terms. So that 286 00:15:06,320 --> 00:15:08,440 Speaker 1: sets us up with a very good tailwind going into 287 00:15:08,480 --> 00:15:11,200 Speaker 1: twenty twenty three. How much of a problem are you, know, 288 00:15:11,320 --> 00:15:14,640 Speaker 1: these big superstorms and are we really seeing more and 289 00:15:14,720 --> 00:15:16,200 Speaker 1: more of them or do we just talk about it 290 00:15:16,280 --> 00:15:18,840 Speaker 1: a lot? I mean, since Katrina, we haven't seen that 291 00:15:19,000 --> 00:15:21,600 Speaker 1: kind of devastation in the US, but we've had some 292 00:15:21,680 --> 00:15:25,160 Speaker 1: big storms along Florida. We had Superstorm Sandy here that 293 00:15:25,240 --> 00:15:28,400 Speaker 1: closed the New York Stock Exchange for four days. Is 294 00:15:28,480 --> 00:15:30,840 Speaker 1: that a concern for you? It certainly is, and I 295 00:15:30,880 --> 00:15:32,880 Speaker 1: think it ought to be a concern for everybody. I'll 296 00:15:32,920 --> 00:15:35,320 Speaker 1: give you a couple of statistics. So last year in 297 00:15:35,400 --> 00:15:38,000 Speaker 1: twenty twenty two, the insurance industry paid out over one 298 00:15:38,080 --> 00:15:41,000 Speaker 1: hundred and forty billion in insured loss. In twenty one 299 00:15:41,040 --> 00:15:42,920 Speaker 1: it was one hundred and thirty billion, and insure laws. 300 00:15:42,960 --> 00:15:46,200 Speaker 1: So what we're clearly seeing is more severe storms. This 301 00:15:46,360 --> 00:15:49,280 Speaker 1: is all driven by climate change, right Caesar warming up, 302 00:15:49,880 --> 00:15:54,120 Speaker 1: Warmer seas lead to more severity, higher category four, category 303 00:15:54,200 --> 00:15:58,320 Speaker 1: five type storms. So that creates for our industry essentially 304 00:15:58,360 --> 00:16:01,240 Speaker 1: an impetus to get much better at risk selection and modeling, 305 00:16:01,440 --> 00:16:03,160 Speaker 1: and frankly, that's one of the things that we've done 306 00:16:03,160 --> 00:16:05,760 Speaker 1: at Everest in this period of time is reduce our 307 00:16:05,840 --> 00:16:09,880 Speaker 1: exposure to natural catastrophe, which then reduces our volatility to earnings. 308 00:16:10,120 --> 00:16:12,840 Speaker 1: And it goes back to the diversification point that I 309 00:16:12,960 --> 00:16:15,720 Speaker 1: was making earlier. We're a well balanced company, so we 310 00:16:15,800 --> 00:16:19,200 Speaker 1: don't have to rely only on property. Natural catastrophe exposures. 311 00:16:19,320 --> 00:16:20,920 Speaker 1: What happens to our good friends down in Florida, can 312 00:16:20,960 --> 00:16:23,080 Speaker 1: they even get insurances? And that's where you're from, right, 313 00:16:23,160 --> 00:16:25,280 Speaker 1: you grew up in Miami. I am I'm a Florida boy. 314 00:16:25,440 --> 00:16:27,840 Speaker 1: It happens well. Listen, if Florida has gone through a 315 00:16:27,960 --> 00:16:30,200 Speaker 1: very difficult period of time, particularly over the last couple 316 00:16:30,240 --> 00:16:33,640 Speaker 1: of years, but the governor in the special legislative session 317 00:16:33,680 --> 00:16:35,240 Speaker 1: that they just had at the end of last year, 318 00:16:35,520 --> 00:16:38,080 Speaker 1: have put in place some very good reforms that will 319 00:16:38,120 --> 00:16:40,600 Speaker 1: curve some of the fraud, some of the litigation that 320 00:16:40,720 --> 00:16:43,600 Speaker 1: basically was creating a capacity crunch, if you will, in 321 00:16:43,680 --> 00:16:46,080 Speaker 1: the state. Now, those reforms will take some time to 322 00:16:46,240 --> 00:16:49,080 Speaker 1: play out, but ultimately that votes very well for Florida 323 00:16:49,560 --> 00:16:52,280 Speaker 1: for their consumers. And for the insurance and reinsurance market. 324 00:16:52,840 --> 00:16:55,160 Speaker 1: I mean that's so as a state kind of for 325 00:16:55,720 --> 00:16:59,000 Speaker 1: the last backstop in Florida. Look, I think in Florida 326 00:16:59,120 --> 00:17:02,400 Speaker 1: have a few wasues. One, you're exposed to hurricanes because 327 00:17:02,440 --> 00:17:04,560 Speaker 1: the word is, you have a lot of people moving 328 00:17:04,600 --> 00:17:06,800 Speaker 1: down there, people like to live on the coast. And 329 00:17:06,920 --> 00:17:08,840 Speaker 1: in addition to that, you have some of the environmental 330 00:17:08,880 --> 00:17:11,639 Speaker 1: factors I just described. There's a lot of fraud and 331 00:17:11,720 --> 00:17:13,879 Speaker 1: there's a lot of litigation, and that's really what the 332 00:17:13,960 --> 00:17:17,240 Speaker 1: governor and the legislature have really just addressed. But again 333 00:17:17,280 --> 00:17:19,520 Speaker 1: that'll take a little bit of time to show up. 334 00:17:19,520 --> 00:17:23,560 Speaker 1: All right, fascinating stuff. Want Andrade CEO of Everest. It's 335 00:17:23,560 --> 00:17:26,560 Speaker 1: in New York Stock Exchange traded company r E is 336 00:17:26,600 --> 00:17:31,640 Speaker 1: a symbol like reinsurance based in Bermuda, Bermuda. And again, 337 00:17:31,680 --> 00:17:33,280 Speaker 1: why are we here not in Bermuda? We could have 338 00:17:33,320 --> 00:17:35,800 Speaker 1: done this. Why isn't there everyone based in Bermuda? Exactly? 339 00:17:39,000 --> 00:17:41,680 Speaker 1: I want to talk energy. We'll do that with Greg Ebel. 340 00:17:41,720 --> 00:17:44,680 Speaker 1: He's the CEO of n Bridge Energy that trades on 341 00:17:44,720 --> 00:17:46,320 Speaker 1: the New York Stock is changed as symbol as e 342 00:17:46,680 --> 00:17:49,880 Speaker 1: N as a Nancy Bison boy it's got a seventy 343 00:17:49,920 --> 00:17:53,160 Speaker 1: eight billion dollar market. Captus stocks up about one point 344 00:17:53,240 --> 00:17:55,680 Speaker 1: two percent today, kind of unchanged on the year. And 345 00:17:55,720 --> 00:17:58,639 Speaker 1: this isn't a company that also had an investor day yesterday. 346 00:17:58,680 --> 00:18:00,160 Speaker 1: It's not just Tesla, but a lot of hope are 347 00:18:00,160 --> 00:18:02,040 Speaker 1: trying to get out in front of their shareholders. Greg, 348 00:18:02,160 --> 00:18:04,720 Speaker 1: thanks so much for joining us here. I'd love to 349 00:18:05,200 --> 00:18:08,240 Speaker 1: first of all, just tell us what end Bridge Energy does, 350 00:18:08,280 --> 00:18:11,720 Speaker 1: how does it fit into the energy stream, and then 351 00:18:11,800 --> 00:18:14,000 Speaker 1: tell us kind of what were your big big points 352 00:18:14,040 --> 00:18:17,160 Speaker 1: you tried to make yesterday your investor day. Sure, I appreciate, 353 00:18:17,680 --> 00:18:21,399 Speaker 1: appreciate being with your Polman. Thanks very much. Yeah. So 354 00:18:21,880 --> 00:18:23,960 Speaker 1: the best way for your listeners probably to think through 355 00:18:24,040 --> 00:18:26,480 Speaker 1: this and Bloomberg Radio think through this is, you know, 356 00:18:26,680 --> 00:18:28,760 Speaker 1: end Bridge is really like the FedEx, if you will, 357 00:18:28,880 --> 00:18:32,159 Speaker 1: from an energy infrastructure perspective, and we're really trying to 358 00:18:32,240 --> 00:18:34,920 Speaker 1: be that first choice for our customers for energy delivery. 359 00:18:35,160 --> 00:18:37,520 Speaker 1: So we pick up whether it's oil or it's gas, 360 00:18:37,680 --> 00:18:40,120 Speaker 1: or we're on the renewable side as well, we'll store 361 00:18:40,160 --> 00:18:43,000 Speaker 1: it and ultimately we deliver it to those users. So 362 00:18:43,240 --> 00:18:46,520 Speaker 1: yesterday it was about going out to the our investors 363 00:18:46,560 --> 00:18:48,880 Speaker 1: and telling them how we you know, we see four 364 00:18:48,920 --> 00:18:52,320 Speaker 1: to six percent growth here over the medium term, continued 365 00:18:52,400 --> 00:18:55,520 Speaker 1: growth in our dividend, which by the way, we've increased 366 00:18:55,560 --> 00:18:58,119 Speaker 1: every year for twenty eight years. So that makes us 367 00:18:58,200 --> 00:19:00,959 Speaker 1: one of those, uh, you know, dividend ristocrats out there. 368 00:19:01,000 --> 00:19:03,600 Speaker 1: And that's a key component in this type of environment. 369 00:19:03,960 --> 00:19:06,320 Speaker 1: And it's all backed up by about seventeen and a 370 00:19:06,359 --> 00:19:10,159 Speaker 1: half billion dollars of pipeline projects that can go throughout 371 00:19:10,880 --> 00:19:14,399 Speaker 1: of North America and wind projects and renewable projects in 372 00:19:14,520 --> 00:19:17,440 Speaker 1: five to seven countries. You know, we move twenty five 373 00:19:17,520 --> 00:19:20,000 Speaker 1: to thirty percent of all the oil and all the 374 00:19:20,080 --> 00:19:22,199 Speaker 1: gas that moves to North America to day every day 375 00:19:22,320 --> 00:19:28,520 Speaker 1: safely reliably. So are there places I just recall seeing 376 00:19:28,560 --> 00:19:34,000 Speaker 1: a story last month where gas bills just soared in California, 377 00:19:34,080 --> 00:19:37,119 Speaker 1: whereas everywhere else around the world, around the country, I 378 00:19:37,160 --> 00:19:40,679 Speaker 1: should say, they were stable or even down. Are there 379 00:19:40,760 --> 00:19:45,560 Speaker 1: places that it's harder to get gas and oil? Two? Yeah, absolutely, 380 00:19:45,640 --> 00:19:47,480 Speaker 1: so California is a good example, you know. But we 381 00:19:48,320 --> 00:19:51,600 Speaker 1: have pipelines where the mainline pipe, the main pipeline provider 382 00:19:51,680 --> 00:19:55,399 Speaker 1: for gas into New England. So New England actually pays 383 00:19:55,560 --> 00:19:59,200 Speaker 1: some of the highest prices for natural gas in the world, 384 00:19:59,280 --> 00:20:02,080 Speaker 1: if you can believe put that in the context of 385 00:20:02,160 --> 00:20:04,560 Speaker 1: what everything that's going on in Europe and stuff. And 386 00:20:04,760 --> 00:20:07,720 Speaker 1: that's not because there's no supply, right the supply. I 387 00:20:07,760 --> 00:20:11,720 Speaker 1: think about the Marsalage shale, they'll think Pennsylvania, Ohio. It's 388 00:20:13,119 --> 00:20:16,639 Speaker 1: about infrastructure. So if you're relying on infrastructure and you 389 00:20:16,720 --> 00:20:19,280 Speaker 1: can't get the supply to where the demand is, good, 390 00:20:19,280 --> 00:20:21,879 Speaker 1: old economics push that. And so you've got a lot 391 00:20:21,960 --> 00:20:24,000 Speaker 1: of people in New England who, through no fault of 392 00:20:24,080 --> 00:20:28,240 Speaker 1: their own, are extremely disadvantaged in terms of what they've 393 00:20:28,280 --> 00:20:30,480 Speaker 1: got to pay for what they've got to pay for 394 00:20:30,560 --> 00:20:32,880 Speaker 1: natural guys. You know, for many years we've been able 395 00:20:32,920 --> 00:20:35,080 Speaker 1: to change that. We'd like to kind of get back 396 00:20:35,119 --> 00:20:39,000 Speaker 1: at doing that. It's a challenging environment as you know, pipelines. 397 00:20:39,920 --> 00:20:43,359 Speaker 1: What are the biggest headwinds Because you say a lot 398 00:20:43,400 --> 00:20:45,520 Speaker 1: of people through no faults of their own, but of 399 00:20:45,600 --> 00:20:49,520 Speaker 1: course we can all vote, and if the big headwind 400 00:20:49,720 --> 00:20:52,800 Speaker 1: is say a governor or a state legislature, it is 401 00:20:52,880 --> 00:20:55,720 Speaker 1: kind of our own fault. Well you hit it right on. 402 00:20:56,400 --> 00:20:58,560 Speaker 1: That is it is when I say no fault of 403 00:20:58,600 --> 00:21:01,400 Speaker 1: their own right, Obviously they're not approving pipelines are doing 404 00:21:01,400 --> 00:21:04,520 Speaker 1: the regulatory side of things, and they're obviously not producing 405 00:21:04,600 --> 00:21:08,200 Speaker 1: the product, so they're they're takers of the product. Most 406 00:21:08,240 --> 00:21:11,320 Speaker 1: of our customers are utilities. So what we really need 407 00:21:11,400 --> 00:21:13,000 Speaker 1: to do is to figure out some way and this 408 00:21:13,160 --> 00:21:16,080 Speaker 1: is true for renewables as as well as pipelines. We've 409 00:21:16,160 --> 00:21:18,199 Speaker 1: got to figure out a way how do we get 410 00:21:18,280 --> 00:21:21,040 Speaker 1: permitting change so that people can get the energy that 411 00:21:21,160 --> 00:21:23,480 Speaker 1: they need. You know, something in the last twelve months 412 00:21:23,520 --> 00:21:26,480 Speaker 1: we've probably all realized, and maybe we were just getting 413 00:21:26,520 --> 00:21:29,920 Speaker 1: too happy about this and complacent, that there is a 414 00:21:30,160 --> 00:21:36,959 Speaker 1: real energy trilemma there of energy security, affordability, and obviously sustainability. 415 00:21:37,080 --> 00:21:38,960 Speaker 1: So you know, I think we've really got to think 416 00:21:39,000 --> 00:21:41,480 Speaker 1: that through. I know here in the United States, Congress 417 00:21:41,600 --> 00:21:45,240 Speaker 1: has looked, as you probably recall, at various permitting reforms 418 00:21:45,280 --> 00:21:47,560 Speaker 1: that was supposed to be part of some elements that 419 00:21:47,680 --> 00:21:50,639 Speaker 1: happened last year. It didn't. Maybe this Congress will be 420 00:21:50,680 --> 00:21:52,480 Speaker 1: able to make some of those changes. And then you 421 00:21:52,600 --> 00:21:54,439 Speaker 1: pointed out at the state level, if you don't get 422 00:21:54,440 --> 00:21:57,720 Speaker 1: support at the state level and makes it very difficult. 423 00:21:57,920 --> 00:22:01,040 Speaker 1: So great, let's just go to that point here. Um, 424 00:22:01,560 --> 00:22:04,280 Speaker 1: My energy analysts kind of said, Hey, ask Greg about 425 00:22:04,359 --> 00:22:09,200 Speaker 1: Michigan and line five. And you know, Governor Whitmer of 426 00:22:09,560 --> 00:22:12,800 Speaker 1: Michigan actually campaign against that pipeline project when you ran 427 00:22:12,920 --> 00:22:14,920 Speaker 1: for office. So just give our listeners a sense of 428 00:22:15,040 --> 00:22:18,000 Speaker 1: maybe the puts and takes when when you sit down 429 00:22:18,040 --> 00:22:20,360 Speaker 1: with regulators, whether it's the state level or the federal level, 430 00:22:20,440 --> 00:22:23,600 Speaker 1: about getting new project approved. Yeah, and you know, often 431 00:22:23,720 --> 00:22:27,320 Speaker 1: it's a it's the situation of you know, people's varying 432 00:22:27,520 --> 00:22:30,960 Speaker 1: views on the pace of energy transition. And again, we're 433 00:22:31,040 --> 00:22:33,960 Speaker 1: involved in all aspects of this, right from the upstream 434 00:22:34,000 --> 00:22:37,639 Speaker 1: to the downstream, from liquids the gas to renewables, and 435 00:22:37,800 --> 00:22:39,440 Speaker 1: I think we've got a pretty good view on what 436 00:22:39,600 --> 00:22:42,120 Speaker 1: that pays. So you know that situation line five, as 437 00:22:42,160 --> 00:22:45,520 Speaker 1: you mentioned it, which is really about a very small 438 00:22:45,680 --> 00:22:52,120 Speaker 1: piece of pipeline or distance wise, Uh, that's uh, that'sh 439 00:22:52,520 --> 00:22:57,399 Speaker 1: goes across the straits there, and frankly, uh, you know, 440 00:22:57,520 --> 00:23:01,080 Speaker 1: it's desperately needed that that energy in places like Detroit 441 00:23:01,200 --> 00:23:06,480 Speaker 1: and refineries in Ohio, and it's also tied up, if 442 00:23:06,560 --> 00:23:09,840 Speaker 1: to make it even more complicated, even in international treaties. 443 00:23:09,920 --> 00:23:13,600 Speaker 1: So you know, despite the commentary out of the governor 444 00:23:13,720 --> 00:23:16,960 Speaker 1: and the Attorney General. I think this is a federal issue. 445 00:23:17,040 --> 00:23:19,400 Speaker 1: It's being dealt with right at the highest levels both 446 00:23:19,440 --> 00:23:22,400 Speaker 1: of the Canadian government with the Prime Minister and obviously 447 00:23:22,560 --> 00:23:25,040 Speaker 1: the Biden administration. So you know, I think this is 448 00:23:25,119 --> 00:23:27,120 Speaker 1: about there's there's a way to do this, and there's 449 00:23:27,119 --> 00:23:29,320 Speaker 1: a way to do this in a in a very 450 00:23:30,880 --> 00:23:37,200 Speaker 1: transitional manner that does not but under fair burdens on consumers. 451 00:23:37,359 --> 00:23:39,800 Speaker 1: And that's what we're trying to do. And in the meantime, 452 00:23:39,920 --> 00:23:42,840 Speaker 1: you know that pipeline continues to run very safely and 453 00:23:43,000 --> 00:23:46,520 Speaker 1: deliver the fuel that's needed to fuel the quality of 454 00:23:46,680 --> 00:23:49,880 Speaker 1: life throughout the Michigan and obviously over in Ohio, any 455 00:23:49,880 --> 00:23:52,880 Speaker 1: of the Canada as well. We always say on this show, 456 00:23:53,040 --> 00:23:56,520 Speaker 1: just so you know, we always call it the Great 457 00:23:56,600 --> 00:24:00,760 Speaker 1: State of Ohio, Greg, that Great State of Ohio or 458 00:24:00,880 --> 00:24:03,399 Speaker 1: the Ohio State, one of the two, right the Ohio 459 00:24:03,520 --> 00:24:08,560 Speaker 1: State University. Pretty good season, a little disappointing against Michigan, obviously, 460 00:24:08,800 --> 00:24:11,200 Speaker 1: but that at all. So, Greg, what's that? What was 461 00:24:11,240 --> 00:24:14,080 Speaker 1: a big message that you wanted to really get across 462 00:24:14,119 --> 00:24:17,200 Speaker 1: at your investor day yesterday in conversially, what maybe is 463 00:24:17,280 --> 00:24:21,000 Speaker 1: the is the number one issue for investors in your company. Well, 464 00:24:21,000 --> 00:24:23,840 Speaker 1: I'd say the number one issue for investors in our company, 465 00:24:23,840 --> 00:24:25,879 Speaker 1: and I think we're addressing it, is how do you 466 00:24:26,000 --> 00:24:28,840 Speaker 1: get this seventeen and a half billion dollar backlog of 467 00:24:28,960 --> 00:24:32,320 Speaker 1: projects into service on time and on budget. And fortunately 468 00:24:32,440 --> 00:24:36,320 Speaker 1: that's spread out over ten or twelve projects, So we 469 00:24:36,440 --> 00:24:39,600 Speaker 1: feel very good about that. Hence our view with investors 470 00:24:39,680 --> 00:24:42,960 Speaker 1: that look, we want to be that first choice energy 471 00:24:43,080 --> 00:24:45,480 Speaker 1: investment for you, and the way for us to do 472 00:24:45,640 --> 00:24:48,640 Speaker 1: that is be that first choice energy delivery. And that's 473 00:24:48,680 --> 00:24:50,800 Speaker 1: what we're really talking about. And you can do that 474 00:24:51,080 --> 00:24:53,680 Speaker 1: in all aspects of the business at Enverridge. Right. Do 475 00:24:53,760 --> 00:24:56,800 Speaker 1: you like utilities, We have the largest gas utility by 476 00:24:56,960 --> 00:25:00,399 Speaker 1: volume in North America if you like the pipeline inside 477 00:25:00,440 --> 00:25:02,320 Speaker 1: of things, and on the old side, we've got those 478 00:25:02,400 --> 00:25:04,879 Speaker 1: pipelines if you like gas pipelines and LG and as 479 00:25:04,920 --> 00:25:07,640 Speaker 1: you know, the United States is now the largest exporter 480 00:25:07,680 --> 00:25:10,440 Speaker 1: of energy. We have that in our portfolio. And we 481 00:25:10,600 --> 00:25:13,240 Speaker 1: also have renewables. We've been in the renewable business for 482 00:25:13,400 --> 00:25:15,720 Speaker 1: twenty five years, so we know how to do that, 483 00:25:15,840 --> 00:25:17,879 Speaker 1: whether it's solar or it's win And that was the 484 00:25:17,960 --> 00:25:20,200 Speaker 1: message and all that what it's going to get you 485 00:25:20,840 --> 00:25:24,040 Speaker 1: is a further extension of the twenty eight years in 486 00:25:24,080 --> 00:25:26,480 Speaker 1: a row of increase in the dividends. So that's the 487 00:25:26,520 --> 00:25:28,840 Speaker 1: message we were actually putting out there. All right, Greg, 488 00:25:28,880 --> 00:25:31,199 Speaker 1: thanks so much for taking the time to join us. 489 00:25:31,280 --> 00:25:34,520 Speaker 1: And you're busy there with your investor investor days, Greg Eble, 490 00:25:34,600 --> 00:25:39,000 Speaker 1: he's the CEO of n y N Bridge Energy Basing, Calgary, Alberta. 491 00:25:39,160 --> 00:25:40,800 Speaker 1: So away out there, one of those seas I really 492 00:25:40,840 --> 00:25:45,639 Speaker 1: want to get to at some point. It stuck a 493 00:25:45,720 --> 00:25:49,840 Speaker 1: little investment banking, little Wall Street stuff. We had some 494 00:25:50,240 --> 00:25:52,680 Speaker 1: investor days. We're done with earnings. We can kind of 495 00:25:52,720 --> 00:25:55,600 Speaker 1: look back. We can also talk a coin base with 496 00:25:55,640 --> 00:25:58,440 Speaker 1: Shinale because yesterday she talked to Brian Armstrong. Yeah, and 497 00:25:58,520 --> 00:26:01,399 Speaker 1: Brian Armstrong was not on Bloomberg, which I think you 498 00:26:01,440 --> 00:26:04,840 Speaker 1: know what it was? Simulcast, dude, was it? Yes? I 499 00:26:04,960 --> 00:26:06,879 Speaker 1: wanted a separate Okay, I was like, why isn't he 500 00:26:06,880 --> 00:26:11,360 Speaker 1: in our Rain Radio studio. Sinali bask Alison Williams, Bloomberg Intelligence. 501 00:26:11,359 --> 00:26:14,480 Speaker 1: Shinnali Bloomberg News joins us here. So Snai, real quick, 502 00:26:14,520 --> 00:26:16,399 Speaker 1: what's the feedback you got on your discussion with our 503 00:26:16,480 --> 00:26:20,359 Speaker 1: friends from coin Bass yesterday. Two things here. One is 504 00:26:20,560 --> 00:26:24,000 Speaker 1: that he talked about how a lot of the assets 505 00:26:24,080 --> 00:26:27,440 Speaker 1: on coin base were associated with the CFTC. They were commodities. 506 00:26:27,680 --> 00:26:29,719 Speaker 1: And of course we know that the SEC is very 507 00:26:29,760 --> 00:26:33,720 Speaker 1: concerned about certain assets being defined as securities. So that 508 00:26:33,920 --> 00:26:36,600 Speaker 1: is going to be very telling about how this fight 509 00:26:36,760 --> 00:26:39,520 Speaker 1: really continues to play out. But Gary Genzel and the 510 00:26:39,640 --> 00:26:45,280 Speaker 1: SEC have said that their staking of ethereum is a 511 00:26:45,440 --> 00:26:50,960 Speaker 1: security not coin basis. They've said, krack in staking service, okay, right, 512 00:26:51,000 --> 00:26:52,920 Speaker 1: and they find cracking like thirty million bucks. Yeah, and 513 00:26:52,920 --> 00:26:56,159 Speaker 1: they didn't admit or deny any wrongdoing, but that was 514 00:26:56,240 --> 00:26:59,199 Speaker 1: the size of the total payment here, so yeah, I mean, 515 00:26:59,240 --> 00:27:01,879 Speaker 1: if you pay somebody thirty million dollars, you don't have 516 00:27:01,960 --> 00:27:04,640 Speaker 1: to admit or deny any wrongdoing. Clearly something happened there. 517 00:27:04,760 --> 00:27:07,119 Speaker 1: So really, Brindan Armstrong is, you know, trying to exode 518 00:27:07,119 --> 00:27:10,040 Speaker 1: a lot of confidence here, trying to work with the regulators. 519 00:27:10,119 --> 00:27:13,760 Speaker 1: You know, he wore a suit. So I think this 520 00:27:13,920 --> 00:27:15,720 Speaker 1: kind of shows you a lot about the place coin 521 00:27:15,800 --> 00:27:18,159 Speaker 1: base is trying to take in the crypto world and 522 00:27:18,280 --> 00:27:22,480 Speaker 1: try to bridge traditional finance with crypto. Hey, Alison Alson 523 00:27:22,480 --> 00:27:25,560 Speaker 1: Williams Bloomberg intelligence. Also on our Bloomberg Interactor Broker Studio here, 524 00:27:25,600 --> 00:27:28,080 Speaker 1: you were at Goldman Sachs yesterday. What's kind of your 525 00:27:28,119 --> 00:27:31,720 Speaker 1: takeaway from Goldman from the investment banks, what's kind of 526 00:27:31,760 --> 00:27:35,520 Speaker 1: the narrative you're on the big investment banks. So I 527 00:27:35,640 --> 00:27:40,600 Speaker 1: think it's still all about the economy. Right, So we 528 00:27:40,800 --> 00:27:44,959 Speaker 1: wrapped up the fourth quarter. We've had Goldman Investor Day. 529 00:27:44,960 --> 00:27:47,760 Speaker 1: I was disappointing. Goldman, I think was disappointing on sort 530 00:27:47,760 --> 00:27:52,960 Speaker 1: of both fronts, you know. And I think we talked 531 00:27:52,960 --> 00:27:56,119 Speaker 1: about the fact that, like to me, they're killing it 532 00:27:56,240 --> 00:27:59,920 Speaker 1: in their core business, right, so trading, gaining significant share, 533 00:28:00,920 --> 00:28:04,159 Speaker 1: M and A, which is a lucrative business. You have 534 00:28:04,200 --> 00:28:06,560 Speaker 1: all these boutiques that you know, have popped up going 535 00:28:06,640 --> 00:28:11,000 Speaker 1: after that business. There's still number one for a long time. 536 00:28:11,680 --> 00:28:15,600 Speaker 1: So I think that the quarters started out pretty strong 537 00:28:15,680 --> 00:28:19,560 Speaker 1: in terms of trading. Question for you, Allison, because if 538 00:28:19,640 --> 00:28:21,520 Speaker 1: some people are so upset about the consumer, but the 539 00:28:21,600 --> 00:28:24,359 Speaker 1: reality is with rates up, do you think that what 540 00:28:24,920 --> 00:28:26,800 Speaker 1: Goldman is trying to do, David Salomon is trying to 541 00:28:26,840 --> 00:28:29,439 Speaker 1: do is just say hold on, like we can finally 542 00:28:29,520 --> 00:28:32,600 Speaker 1: make money and consumer, let us try to do that. 543 00:28:32,880 --> 00:28:34,920 Speaker 1: Is that kind of what he's trying. Can he say 544 00:28:35,000 --> 00:28:39,040 Speaker 1: one thing or the other? Well, I think you know, 545 00:28:39,520 --> 00:28:42,160 Speaker 1: it's funny because I think where they what they're doing 546 00:28:42,320 --> 00:28:44,200 Speaker 1: is we're going to focus on the consumer in the 547 00:28:44,520 --> 00:28:47,160 Speaker 1: in the areas that makes sense, right, So the Apple 548 00:28:47,240 --> 00:28:49,880 Speaker 1: card and the GM business, we're going to focus on 549 00:28:49,960 --> 00:28:53,600 Speaker 1: those areas. The balance transfer business, which you know, to 550 00:28:53,720 --> 00:28:56,480 Speaker 1: me never made sense for them. It's I don't know 551 00:28:56,520 --> 00:28:58,959 Speaker 1: what the competitive advantages of doing a strategy that came 552 00:28:59,000 --> 00:29:03,080 Speaker 1: out in the nineties. It's never really been a winner, um, 553 00:29:03,240 --> 00:29:07,400 Speaker 1: and does not work well in a higher rate environment. Um. 554 00:29:07,520 --> 00:29:10,560 Speaker 1: So moving away from that and keeping the more profitable 555 00:29:10,640 --> 00:29:14,640 Speaker 1: businesses um. But you should have just said it like that. 556 00:29:14,720 --> 00:29:16,520 Speaker 1: He should have said, you know what, this was a 557 00:29:16,600 --> 00:29:19,600 Speaker 1: bad idea. We made the wrong decision. We're going to 558 00:29:19,680 --> 00:29:21,320 Speaker 1: move on from that. Well, we keep a couple of 559 00:29:21,560 --> 00:29:24,080 Speaker 1: pieces of this business. Yes, but we're done. The consumer 560 00:29:24,120 --> 00:29:27,640 Speaker 1: business is dead. Put it it's what do you put 561 00:29:27,680 --> 00:29:29,800 Speaker 1: a fork in it? Right? It's over, and that's I 562 00:29:29,880 --> 00:29:31,720 Speaker 1: think people would have been happy with it. They didn't 563 00:29:31,760 --> 00:29:33,440 Speaker 1: come out and say, well, I think I think what 564 00:29:33,880 --> 00:29:38,160 Speaker 1: they did say is that they are looking at strategic options, right, 565 00:29:38,280 --> 00:29:40,360 Speaker 1: So I think people got excited like, oh, they might 566 00:29:40,440 --> 00:29:42,720 Speaker 1: sell it, and then you know, analysts are like, oh, 567 00:29:42,760 --> 00:29:44,920 Speaker 1: you gonna sell this quarter, You're gonna sell this and that. 568 00:29:45,160 --> 00:29:46,960 Speaker 1: That's when he was kind of like, Okay, look like 569 00:29:47,360 --> 00:29:48,800 Speaker 1: we've told you what we're going to tell you. We 570 00:29:49,040 --> 00:29:52,040 Speaker 1: can't say anymore. All right, Alison Williams, Shinelli Bassek, give 571 00:29:52,120 --> 00:29:53,480 Speaker 1: us a little bit of a round table here on 572 00:29:53,560 --> 00:29:59,280 Speaker 1: all things Wall Street. Let's talk eighteen ft. Is that 573 00:29:59,360 --> 00:30:02,960 Speaker 1: okay with you? Absolutely? I love ETS. I have a 574 00:30:03,000 --> 00:30:06,400 Speaker 1: whole show dedicated to ETFs on Tuesdays no on Mondays 575 00:30:06,400 --> 00:30:09,440 Speaker 1: at one pm Wall Street Time. Yasmin daya builder joints 576 00:30:09,480 --> 00:30:12,520 Speaker 1: us here in our Bloomberg Interactor Broker studio. She's head 577 00:30:12,560 --> 00:30:16,160 Speaker 1: of ETFs and managing director at Engine Number one. Yasmin, 578 00:30:16,320 --> 00:30:18,760 Speaker 1: thanks much for joining us here in our Bloomberg Interactor 579 00:30:18,840 --> 00:30:21,120 Speaker 1: Broker studio. We appreciate you coming in. Just give me 580 00:30:21,200 --> 00:30:23,600 Speaker 1: the thirty second call on what is it? What do 581 00:30:23,640 --> 00:30:25,600 Speaker 1: you guys do at Engine number one? Yeah? Sure, thanks 582 00:30:25,640 --> 00:30:27,880 Speaker 1: for having me. And to Number One's an investment firm 583 00:30:27,960 --> 00:30:31,440 Speaker 1: and we're focused on identifying and investing in large scale 584 00:30:31,560 --> 00:30:35,200 Speaker 1: transformational themes. We're best known by many investors for our 585 00:30:35,280 --> 00:30:37,520 Speaker 1: activist campaign where we got three people on the board 586 00:30:37,520 --> 00:30:39,880 Speaker 1: of directors at x on Mobile, and I think that 587 00:30:40,000 --> 00:30:42,200 Speaker 1: campaign sort of shows two things of how we focus. 588 00:30:42,400 --> 00:30:44,960 Speaker 1: Number One, we come at some of these questions around, 589 00:30:45,080 --> 00:30:48,040 Speaker 1: for example, climate change environmental issues from the lens of 590 00:30:48,080 --> 00:30:51,280 Speaker 1: an investor. What is additive to shareholder value for a 591 00:30:51,360 --> 00:30:54,880 Speaker 1: company over time, not ideology or morality of climate change 592 00:30:54,920 --> 00:30:58,440 Speaker 1: for example. And secondly, we're active owners. We work closely 593 00:30:58,480 --> 00:31:00,800 Speaker 1: with the companies in our portfolio to think about where 594 00:31:00,800 --> 00:31:02,560 Speaker 1: are the things that they can do to be more 595 00:31:02,600 --> 00:31:05,680 Speaker 1: accountable to their plans or accelerate their plans. Have you 596 00:31:05,760 --> 00:31:09,240 Speaker 1: ever met Vek Ramaswami. I have not personally. Now, okay, 597 00:31:09,280 --> 00:31:11,280 Speaker 1: so he's this drive guy. Yeah, I think he's running 598 00:31:11,280 --> 00:31:18,200 Speaker 1: a real president. But he will tell you, or he 599 00:31:18,280 --> 00:31:21,040 Speaker 1: tells us, that he's not anti ESG. He just wants 600 00:31:21,120 --> 00:31:25,680 Speaker 1: to maximize profits. And I had thought of engine number 601 00:31:25,720 --> 00:31:29,280 Speaker 1: one as being an ESG play. But you're saying that's 602 00:31:29,320 --> 00:31:31,840 Speaker 1: not the case. Absolutely not. In fact, I think this 603 00:31:31,960 --> 00:31:33,680 Speaker 1: is actually one of the hard parts of the market, 604 00:31:33,840 --> 00:31:36,960 Speaker 1: is this terminology around ESG. So maybe I can spend 605 00:31:37,000 --> 00:31:39,320 Speaker 1: a second on that and they'll talk about us ESG 606 00:31:39,400 --> 00:31:42,880 Speaker 1: investing predominantly is about trying to rate companies and rank 607 00:31:42,960 --> 00:31:46,160 Speaker 1: companies and so rating them by environmental criteria or social 608 00:31:46,240 --> 00:31:49,480 Speaker 1: criteria and really ultimately saying what's the best company in 609 00:31:49,520 --> 00:31:51,920 Speaker 1: the portfolio based on that criteria and what's the worst. 610 00:31:52,440 --> 00:31:54,760 Speaker 1: The problem with that is, number one, all of that 611 00:31:54,920 --> 00:31:57,400 Speaker 1: is very subjective. What's good to me may not be 612 00:31:57,520 --> 00:32:00,720 Speaker 1: good to you. And secondly, that whole process is completely 613 00:32:00,800 --> 00:32:03,920 Speaker 1: delinked from performance. None of that involves how does this 614 00:32:04,040 --> 00:32:07,920 Speaker 1: actually relate to a company's long term prospects and value creation. 615 00:32:08,520 --> 00:32:12,080 Speaker 1: We're really looking for where there is an intersection between 616 00:32:12,600 --> 00:32:16,480 Speaker 1: criteria in these spaces and shareholder value. So we're absolutely 617 00:32:16,520 --> 00:32:18,600 Speaker 1: looking at this in the investment from the investment lens, 618 00:32:18,640 --> 00:32:22,880 Speaker 1: and our goal is ultimately long term investment performance for investors. 619 00:32:23,120 --> 00:32:26,400 Speaker 1: All Right, So, I know, Yasman, you guys focus on 620 00:32:26,560 --> 00:32:29,200 Speaker 1: a lot of thematic work in your ETFs, and we 621 00:32:29,280 --> 00:32:31,440 Speaker 1: were just talking about supply chain talked to us about 622 00:32:31,480 --> 00:32:33,640 Speaker 1: how what are some of the themes you guys are 623 00:32:33,680 --> 00:32:36,280 Speaker 1: working on with your ETF business. Yeah, I think theme 624 00:32:36,320 --> 00:32:40,000 Speaker 1: based investing is very interesting and from our perspective, one 625 00:32:40,000 --> 00:32:43,320 Speaker 1: of the most interesting themes right now is the relocalization 626 00:32:43,400 --> 00:32:46,480 Speaker 1: of supply chains to North America. Now, to talk about 627 00:32:46,520 --> 00:32:48,520 Speaker 1: where is this investment going, you actually kind of have 628 00:32:48,520 --> 00:32:50,200 Speaker 1: to spend a little time on where it's been, which 629 00:32:50,280 --> 00:32:53,040 Speaker 1: is that for the past forty years, companies have really 630 00:32:53,080 --> 00:32:56,840 Speaker 1: been focused primarily and almost exclusively in their supply chains 631 00:32:56,840 --> 00:32:59,800 Speaker 1: around financial efficiencies, so moving huge parts of their supply 632 00:33:00,040 --> 00:33:04,960 Speaker 1: chains to lower cost regions, eliminating redundant season supply chains. 633 00:33:05,480 --> 00:33:07,280 Speaker 1: Which the best way to see this is just look 634 00:33:07,320 --> 00:33:10,680 Speaker 1: at US manufacturing over that forty year period of time. 635 00:33:10,720 --> 00:33:13,880 Speaker 1: I was just talking about US lost. The US lost 636 00:33:13,880 --> 00:33:18,440 Speaker 1: seven million manufacturing jobs, so enormous and magnitude, but it 637 00:33:18,560 --> 00:33:21,320 Speaker 1: actually left companies very exposed to a lot of i'd 638 00:33:21,360 --> 00:33:25,000 Speaker 1: say unintended consequences. Ultimately, supply chains were proven to be 639 00:33:25,120 --> 00:33:28,040 Speaker 1: very fragile. So the big trend right now is bringing 640 00:33:28,080 --> 00:33:31,520 Speaker 1: back parts of supply chains to help create more resilience 641 00:33:31,520 --> 00:33:33,600 Speaker 1: supply chains. And we think there's a lot of investment 642 00:33:33,640 --> 00:33:36,280 Speaker 1: opportunity out But does it make sense, I mean, reassoring 643 00:33:36,560 --> 00:33:39,920 Speaker 1: is the you know, popular term. Does it make sense 644 00:33:40,000 --> 00:33:41,840 Speaker 1: to bring them back to the US because we still 645 00:33:41,880 --> 00:33:46,120 Speaker 1: have high labor costs, right, or does it make sense 646 00:33:46,200 --> 00:33:50,040 Speaker 1: to move away from countries with whom we may have, 647 00:33:51,640 --> 00:33:55,360 Speaker 1: you know, our differences, but bring them to places like 648 00:33:55,480 --> 00:33:57,880 Speaker 1: Mexico where they have much lower I mean, this is 649 00:33:57,920 --> 00:34:00,360 Speaker 1: the old story. When I was a kid college, we 650 00:34:00,440 --> 00:34:02,880 Speaker 1: studied machiadoras in Mexico and that was a bad thing 651 00:34:03,000 --> 00:34:05,520 Speaker 1: back then. But now bringing a company back and putting 652 00:34:05,520 --> 00:34:07,760 Speaker 1: it it's production in Mexico is a good thing. Yeah, 653 00:34:07,920 --> 00:34:10,600 Speaker 1: it's a really good question. So first of all, the 654 00:34:10,760 --> 00:34:14,479 Speaker 1: cost differentials and labor advantages between the US and China, 655 00:34:14,560 --> 00:34:17,200 Speaker 1: for example, have narrowed, and in fact it's lower costs 656 00:34:17,239 --> 00:34:19,480 Speaker 1: to produce certain goods in Mexico now, So your point, 657 00:34:19,719 --> 00:34:22,600 Speaker 1: So the opportunity is really broadly North America, I would say, 658 00:34:22,680 --> 00:34:25,960 Speaker 1: in a big way. So that's point one. Point two. 659 00:34:26,239 --> 00:34:28,799 Speaker 1: Automation and innovation is going to be an important part 660 00:34:28,840 --> 00:34:31,480 Speaker 1: of this, because you're absolutely right. There was a reason 661 00:34:31,560 --> 00:34:34,000 Speaker 1: why many parts, in all parts, frankly of supply chains 662 00:34:34,040 --> 00:34:37,040 Speaker 1: were put abroad. It was cost. So when bringing certain 663 00:34:37,080 --> 00:34:39,040 Speaker 1: parts back, you have to think about, is there a 664 00:34:39,080 --> 00:34:43,520 Speaker 1: way to actually make your manufacturing processes, your manufacturing factories 665 00:34:43,880 --> 00:34:46,600 Speaker 1: more efficient in the way they operate to help combat 666 00:34:46,719 --> 00:34:48,839 Speaker 1: that cost differential. And that's one of the big areas 667 00:34:48,880 --> 00:34:51,160 Speaker 1: we're actually investing around, are there also positive? I mean, 668 00:34:52,239 --> 00:34:55,440 Speaker 1: you don't care about climate change on an a moral ground, 669 00:34:55,680 --> 00:34:58,040 Speaker 1: but if what you're doing happens to be better for 670 00:34:58,120 --> 00:35:02,000 Speaker 1: the climate, doesn't that please your investors? I mean, we 671 00:35:02,760 --> 00:35:07,160 Speaker 1: spend our time understanding how these issue areas impact broader 672 00:35:07,160 --> 00:35:10,600 Speaker 1: stakeholders because it's an important part of understanding risk for companies. 673 00:35:11,080 --> 00:35:15,360 Speaker 1: And certainly the relocalization of supply chains to North America 674 00:35:15,600 --> 00:35:18,400 Speaker 1: should actually lower emissions over time, just given the regulatory 675 00:35:18,480 --> 00:35:22,359 Speaker 1: standards we have around environmental standards in the US. I'd 676 00:35:22,400 --> 00:35:25,319 Speaker 1: also say it's going to be hugely impactful for job 677 00:35:25,400 --> 00:35:28,840 Speaker 1: creation in the US, particularly in the manufacturing sector, and 678 00:35:28,880 --> 00:35:30,880 Speaker 1: we spent a lot of time looking at when their 679 00:35:30,920 --> 00:35:33,600 Speaker 1: local plant is built, what does that actually do in 680 00:35:33,760 --> 00:35:35,480 Speaker 1: terms of, you know, the types of jobs that are 681 00:35:35,520 --> 00:35:38,160 Speaker 1: brought back, the wages of those jobs, and I think 682 00:35:38,239 --> 00:35:41,600 Speaker 1: importantly the multiplier effect of that, you know, the extra 683 00:35:41,719 --> 00:35:44,920 Speaker 1: jobs that are created indirectly around that, And so I 684 00:35:45,000 --> 00:35:47,560 Speaker 1: think that will actually be a huge, hugely important. By 685 00:35:47,560 --> 00:35:49,160 Speaker 1: the way, I'm not sure how much you're focused on this, 686 00:35:50,080 --> 00:35:53,440 Speaker 1: because that's I guess a longer term right, bringing these 687 00:35:54,520 --> 00:35:57,640 Speaker 1: production facilities back and those jobs will be created over 688 00:35:57,680 --> 00:36:01,800 Speaker 1: the next years, not months. But is it inflationary It 689 00:36:01,960 --> 00:36:04,120 Speaker 1: certainly can be. Yeah, that's one of the big thesis 690 00:36:04,239 --> 00:36:06,400 Speaker 1: across our whole broader. I mean, we're focused on the 691 00:36:06,480 --> 00:36:09,680 Speaker 1: reindustrialization I would say about North America and implicit and 692 00:36:09,800 --> 00:36:12,840 Speaker 1: that is an inflationary pressure. Yes. Another big theme I 693 00:36:12,920 --> 00:36:14,920 Speaker 1: know you guys spend a lot of time on at 694 00:36:14,960 --> 00:36:17,600 Speaker 1: engine Number one is energy. What are some of the 695 00:36:17,680 --> 00:36:21,200 Speaker 1: plays and where you're seeing some of the flows go. Yeah. Absolutely, So, 696 00:36:21,920 --> 00:36:24,279 Speaker 1: just to say up front, the energy transformation, as we 697 00:36:24,400 --> 00:36:27,560 Speaker 1: call it, is one of the biggest investment opportunities that 698 00:36:27,640 --> 00:36:29,680 Speaker 1: sits in front of us. By some estimates, it's going 699 00:36:29,719 --> 00:36:32,920 Speaker 1: to take three to five trillion dollars of investment per 700 00:36:33,040 --> 00:36:36,120 Speaker 1: year to decarbonize our economy. So we're talking about massive 701 00:36:36,160 --> 00:36:39,080 Speaker 1: investment dollars flowing into the space. We have a very 702 00:36:39,160 --> 00:36:42,279 Speaker 1: different point of view than most classic climate strategies. A 703 00:36:42,360 --> 00:36:44,680 Speaker 1: classic climate strategy would be built in a way where 704 00:36:44,719 --> 00:36:46,480 Speaker 1: it's if you don't like it, you don't own in, 705 00:36:46,800 --> 00:36:50,400 Speaker 1: so you avoid the largest emitters, the largest companies and sectors. 706 00:36:50,960 --> 00:36:54,080 Speaker 1: From our perspective, some of the biggest investment opportunities are 707 00:36:54,239 --> 00:36:59,800 Speaker 1: places like agriculture, transportation, energy. Basically, seventy five percent of 708 00:37:00,000 --> 00:37:03,359 Speaker 1: global greenhouse gas emissions come from those three segments. That's 709 00:37:03,400 --> 00:37:05,719 Speaker 1: the heart of the energy transition. So where we spend 710 00:37:05,760 --> 00:37:08,719 Speaker 1: our times across those value chains and just looking for 711 00:37:08,800 --> 00:37:11,880 Speaker 1: opportunity in those spaces, which you know most most places 712 00:37:11,920 --> 00:37:14,400 Speaker 1: would be just trying to minimize your emissions in your 713 00:37:14,440 --> 00:37:18,440 Speaker 1: portfolio today by investing in sort of younger green technology solutions. 714 00:37:18,640 --> 00:37:20,719 Speaker 1: What do you think about those younger green technology Are 715 00:37:21,000 --> 00:37:26,239 Speaker 1: they just not ready to generate profit or oh it's 716 00:37:26,239 --> 00:37:28,520 Speaker 1: an and not nor I mean, but that's that's I 717 00:37:28,600 --> 00:37:31,320 Speaker 1: think the bigger thing here is just widening the aperture 718 00:37:31,360 --> 00:37:33,320 Speaker 1: of where you see the opportunity. A good example of 719 00:37:33,360 --> 00:37:36,160 Speaker 1: this would be transportation, just to talk about the whole 720 00:37:36,200 --> 00:37:39,839 Speaker 1: system altogether. When most people think about what's the opportunity 721 00:37:40,239 --> 00:37:44,120 Speaker 1: in the energy transition for transportation, those electric vehicles, and 722 00:37:44,200 --> 00:37:47,080 Speaker 1: they'll own the companies that are the leaders leading automakers 723 00:37:47,120 --> 00:37:50,200 Speaker 1: and electric vehicles. But there's so much more to the 724 00:37:50,440 --> 00:37:53,160 Speaker 1: investment approach that you have to think about. For example, 725 00:37:53,719 --> 00:37:56,800 Speaker 1: metals are an important component of batteries, which are obviously 726 00:37:56,880 --> 00:37:59,240 Speaker 1: going to be a important part of being all electric. 727 00:38:00,000 --> 00:38:02,040 Speaker 1: Mining equipment is needed to get those metals out of 728 00:38:02,040 --> 00:38:05,280 Speaker 1: the ground. Another type of company you can invest around, 729 00:38:05,360 --> 00:38:07,239 Speaker 1: and then transportation, how are you going to move all 730 00:38:07,280 --> 00:38:10,560 Speaker 1: those inputs around. So we just define the opportunity a 731 00:38:10,640 --> 00:38:13,640 Speaker 1: lot broadened, and I would say most investors do, who 732 00:38:13,719 --> 00:38:15,960 Speaker 1: I think see it more from one sort of sector 733 00:38:16,080 --> 00:38:20,279 Speaker 1: level lens. I'm learning a lot here. So where are 734 00:38:20,360 --> 00:38:22,640 Speaker 1: the where do you see the flows in that? In 735 00:38:22,719 --> 00:38:24,480 Speaker 1: the energy space, where do you see the flows going 736 00:38:24,800 --> 00:38:27,320 Speaker 1: the most? Are people just looking to get the latest 737 00:38:27,360 --> 00:38:31,080 Speaker 1: technology or can you get them to think bigger pictures 738 00:38:31,360 --> 00:38:32,800 Speaker 1: and the and the metals. By the way, we just 739 00:38:32,880 --> 00:38:37,520 Speaker 1: have a big BusinessWeek piece that forward, among others, is 740 00:38:37,600 --> 00:38:42,840 Speaker 1: sourcing aluminum from minds that are allegedly polluting you know, 741 00:38:43,040 --> 00:38:48,520 Speaker 1: whole communities in the Amazon. Oh. These are complex, complex topics, 742 00:38:48,560 --> 00:38:50,320 Speaker 1: which is why I think this is one hundred percent 743 00:38:50,400 --> 00:38:52,960 Speaker 1: the space for active management. It is very difficult to 744 00:38:53,080 --> 00:38:55,360 Speaker 1: just kind of set it and forget it through an 745 00:38:55,400 --> 00:38:58,759 Speaker 1: index based approach. I think theme based investing broadly is 746 00:38:58,760 --> 00:39:01,360 Speaker 1: actually going to have a real kind of tailwind to 747 00:39:01,520 --> 00:39:03,680 Speaker 1: it because if you think about right now, investors have 748 00:39:03,840 --> 00:39:06,120 Speaker 1: to be hunting for differentiated sources of growth in their 749 00:39:06,160 --> 00:39:09,080 Speaker 1: portfolio beyond what worked for them for the last ten 750 00:39:09,200 --> 00:39:11,320 Speaker 1: fifteen years, which is just let me go to the 751 00:39:11,400 --> 00:39:14,759 Speaker 1: lowest cost market cap portfolio i can. And so I 752 00:39:14,840 --> 00:39:17,640 Speaker 1: think some of these themes, but particularly active managers who 753 00:39:17,680 --> 00:39:20,359 Speaker 1: can play it in a really dynamic way, it's going 754 00:39:20,400 --> 00:39:22,520 Speaker 1: to be very interesting for investors as they build portfolio. 755 00:39:22,520 --> 00:39:24,120 Speaker 1: I think you've got one of the best seats on 756 00:39:24,200 --> 00:39:28,080 Speaker 1: Wall Street, which is having a title head of ETFs anywhere. 757 00:39:28,440 --> 00:39:31,359 Speaker 1: The growth in ETFs is pretty amazing believable. I mean 758 00:39:31,440 --> 00:39:33,200 Speaker 1: it's just you know, so we can do a whole 759 00:39:33,280 --> 00:39:36,160 Speaker 1: nother discussion and just on the ETF space and the funds. Well, 760 00:39:36,400 --> 00:39:39,160 Speaker 1: what you guys are doing is unique inside that. Yeah, 761 00:39:39,600 --> 00:39:41,799 Speaker 1: I mean my favorite thing about ETFs is it's both 762 00:39:41,920 --> 00:39:44,719 Speaker 1: growing and evolving. I mean, it is a huge source 763 00:39:44,760 --> 00:39:46,560 Speaker 1: of growth, but also if you look under the hood, 764 00:39:47,120 --> 00:39:49,000 Speaker 1: the number of strategies that are coming out on the 765 00:39:49,080 --> 00:39:52,080 Speaker 1: types of dynamic investments you can now access is so 766 00:39:52,239 --> 00:39:54,120 Speaker 1: much wider than it was just five ten years. It's 767 00:39:54,160 --> 00:39:56,120 Speaker 1: amazing good stuff and I learned a lot today. Yasmin, 768 00:39:56,160 --> 00:39:58,759 Speaker 1: thank you so much for coming in. Yasmin DAYA build 769 00:39:58,760 --> 00:40:01,520 Speaker 1: your head of ETF, managing director at Engine Number one. 770 00:40:01,600 --> 00:40:06,080 Speaker 1: A very smart discussion ever. Thanks for listening to the 771 00:40:06,120 --> 00:40:10,040 Speaker 1: Bloomberg Markets podcast. You can subscribe and listen to interviews 772 00:40:10,040 --> 00:40:14,319 Speaker 1: with Apple Podcasts or whatever podcast platform you prefer. I'm 773 00:40:14,400 --> 00:40:18,120 Speaker 1: Matt Miller. I'm on Twitter at Matt Miller nineteen seventy three, 774 00:40:18,560 --> 00:40:21,000 Speaker 1: and I'm Fall Sweeney. I'm on Twitter at pt Sweeney. 775 00:40:21,120 --> 00:40:23,759 Speaker 1: Before the podcast, you can always catch us worldwide at 776 00:40:23,800 --> 00:40:24,560 Speaker 1: Bloomberg Radio