1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day, we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,560 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,479 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:23,280 Speaker 1: at Bloomberg dot com slash podcast. We have been talking 7 00:00:23,280 --> 00:00:29,200 Speaker 1: about the supply chain crisis ever since the ever Green 8 00:00:29,400 --> 00:00:32,840 Speaker 1: got stuck sideways in the Suez Canal, at least since then, 9 00:00:33,120 --> 00:00:35,320 Speaker 1: and um, it's just gotten worse and worse and worse. 10 00:00:35,400 --> 00:00:38,240 Speaker 1: We have an expert in the studio now to discuss 11 00:00:38,720 --> 00:00:41,160 Speaker 1: um what they're doing about it in the shipping sector. 12 00:00:41,200 --> 00:00:43,720 Speaker 1: Greg Hewitt joins US chief executive Officer of d h 13 00:00:43,960 --> 00:00:48,720 Speaker 1: L Express USA. Greg, how does it look to you? Well, 14 00:00:48,760 --> 00:00:50,440 Speaker 1: first of all, thank you for coming into the studio. 15 00:00:50,600 --> 00:00:52,760 Speaker 1: Happy to be here. It's so great to have somebody 16 00:00:52,840 --> 00:00:56,560 Speaker 1: in person in the studio rather than over zoom or 17 00:00:56,680 --> 00:01:00,720 Speaker 1: over um face time, or however we over the phone 18 00:01:00,840 --> 00:01:03,200 Speaker 1: often we use the phone. UM, so it's good to 19 00:01:03,200 --> 00:01:05,080 Speaker 1: have you in here. Uh, We're glad you could get 20 00:01:05,080 --> 00:01:07,720 Speaker 1: in here. Can you still get stuff around the world 21 00:01:07,800 --> 00:01:10,480 Speaker 1: in a timely manner or does it just cost more. 22 00:01:10,640 --> 00:01:12,640 Speaker 1: How does the supply chain crisis look to you right now? 23 00:01:12,760 --> 00:01:15,440 Speaker 1: I think if I look at what's happened through the pandemic, 24 00:01:15,880 --> 00:01:20,440 Speaker 1: you've got first the capacity crunch in the aviation sector 25 00:01:20,480 --> 00:01:24,119 Speaker 1: with commercial flights coming down, which creates a shortage, which 26 00:01:24,120 --> 00:01:26,640 Speaker 1: in the early days I say, the early days of 27 00:01:26,680 --> 00:01:30,600 Speaker 1: this pandemic meant the goods flowed to ocean into fixed 28 00:01:30,640 --> 00:01:34,280 Speaker 1: carriers like like my company. I think you mentioned the 29 00:01:34,319 --> 00:01:37,640 Speaker 1: Suez challenges and what's happened in the ports, and all 30 00:01:37,640 --> 00:01:40,960 Speaker 1: of a sudden capacity on the ocean this year has 31 00:01:41,000 --> 00:01:44,600 Speaker 1: been constricted as business to business traffic came back, and 32 00:01:44,640 --> 00:01:48,560 Speaker 1: so that's pushed an even more pressure on fixed networks 33 00:01:48,600 --> 00:01:52,240 Speaker 1: like ours to handle that additional flow. I think what 34 00:01:52,280 --> 00:01:54,360 Speaker 1: we've been able to do is make sure we've been 35 00:01:54,400 --> 00:01:59,360 Speaker 1: consistently investing in aviation capacity than an infrastructure like hubs 36 00:01:59,360 --> 00:02:02,240 Speaker 1: and gateways to handle more pieces, and then of course 37 00:02:02,600 --> 00:02:06,960 Speaker 1: hiring people couriers and terminal handling staff and CS people 38 00:02:07,240 --> 00:02:09,440 Speaker 1: to manage that flow that I'm feeling competent that is 39 00:02:09,520 --> 00:02:11,880 Speaker 1: peak comes in this year, We're going to be able 40 00:02:11,919 --> 00:02:16,840 Speaker 1: to handle our piece of the supply chain. But I think, yeah, 41 00:02:16,919 --> 00:02:19,240 Speaker 1: what us Thanksgiving through till the end of the year, 42 00:02:19,680 --> 00:02:21,720 Speaker 1: UH is peak season for US, and we'll see about 43 00:02:21,720 --> 00:02:25,560 Speaker 1: a fifteen percent lifting volume, which isn't a crazy figure 44 00:02:25,600 --> 00:02:28,160 Speaker 1: for US. We've seen years where it's been more. It's 45 00:02:28,240 --> 00:02:31,240 Speaker 1: just the whole supply chain is backed up, and so 46 00:02:31,280 --> 00:02:34,320 Speaker 1: I think if people could send more, they probably would. 47 00:02:34,360 --> 00:02:37,520 Speaker 1: But because we've got capacity constraints in the air and 48 00:02:37,560 --> 00:02:40,360 Speaker 1: through our hubs, were just what's a record for you? 49 00:02:40,360 --> 00:02:43,359 Speaker 1: And I think last year we were over thirty growth. 50 00:02:43,400 --> 00:02:44,920 Speaker 1: It would have been one of the biggest that we 51 00:02:44,960 --> 00:02:47,320 Speaker 1: saw last year. If you think of the first year 52 00:02:47,320 --> 00:02:50,560 Speaker 1: of the pandemic, you saw personal protective equipment in e 53 00:02:50,720 --> 00:02:53,600 Speaker 1: commercepoon this year it's a bit of a shift. E 54 00:02:53,639 --> 00:02:57,000 Speaker 1: commerce is still strong, but we're seeing business to business 55 00:02:57,040 --> 00:03:01,160 Speaker 1: come back. Semiconductor market, automotive sector is really booming, so 56 00:03:01,200 --> 00:03:03,440 Speaker 1: a little bit heavier for itight and bigger product. We 57 00:03:03,480 --> 00:03:06,360 Speaker 1: think of porters five forces. It's all about the pricing 58 00:03:06,400 --> 00:03:09,839 Speaker 1: power of companies. How is your pricing power with your 59 00:03:10,160 --> 00:03:12,880 Speaker 1: clients and able to pass that onto the consumer? Are 60 00:03:12,919 --> 00:03:15,880 Speaker 1: you able to do so? Our consumer is willing to 61 00:03:15,919 --> 00:03:18,760 Speaker 1: absorb that well. I think that's what's been attractive. In 62 00:03:18,919 --> 00:03:22,040 Speaker 1: fixed network like ours, we haven't kind of moved to 63 00:03:22,120 --> 00:03:24,280 Speaker 1: market bace pricing. We're in the ocean and in the 64 00:03:24,320 --> 00:03:27,040 Speaker 1: air you've heard four x, five x pricing and some 65 00:03:27,160 --> 00:03:30,120 Speaker 1: even ten x. Because we've got a fixed network, we've 66 00:03:30,120 --> 00:03:34,200 Speaker 1: been able to acquire either our own aircraft, our own capacity, 67 00:03:34,680 --> 00:03:37,280 Speaker 1: some commercial lift in charters, and we've been able to 68 00:03:37,280 --> 00:03:39,560 Speaker 1: blend that in. So I think our price point, although 69 00:03:39,560 --> 00:03:42,960 Speaker 1: it's gone up, hasn't gone up astronomically, and that's why 70 00:03:43,000 --> 00:03:45,720 Speaker 1: people are trying to move more with us. But you're 71 00:03:45,760 --> 00:03:48,880 Speaker 1: maintaining margins. We are. Yeah, we're maintaining our margin because 72 00:03:48,880 --> 00:03:51,400 Speaker 1: we've been able to get more of that air forward 73 00:03:51,480 --> 00:03:54,200 Speaker 1: or traffic that probably didn't move with us before. So 74 00:03:54,280 --> 00:03:57,280 Speaker 1: we take on that higher revenue shipment and that's helped 75 00:03:57,280 --> 00:03:59,880 Speaker 1: balance out the higher cost and infrastructure. And in people, 76 00:04:00,240 --> 00:04:03,040 Speaker 1: we are seeing the wage rates go up higher on 77 00:04:03,200 --> 00:04:07,080 Speaker 1: more of an inflationary inflationary plath than it had historically, 78 00:04:07,080 --> 00:04:09,800 Speaker 1: and we're having to do that battle for talent. Yeah. 79 00:04:09,840 --> 00:04:12,000 Speaker 1: I we often hear about the battle for talent in 80 00:04:12,040 --> 00:04:16,360 Speaker 1: trucks and I've always for me my fallback career, and 81 00:04:16,360 --> 00:04:19,159 Speaker 1: it really like I've always romanticized being a long haul 82 00:04:19,160 --> 00:04:22,560 Speaker 1: truck driver, but it's not easy to get your commercial license, 83 00:04:22,560 --> 00:04:24,480 Speaker 1: and it's not easy to operate those big rigs. You 84 00:04:24,520 --> 00:04:27,559 Speaker 1: need experience. You can't just hire somebody off the street. 85 00:04:27,560 --> 00:04:29,880 Speaker 1: He doesn't know what he or she is doing. What's 86 00:04:29,880 --> 00:04:32,440 Speaker 1: the trucking situation look like for you guys, Well, for us, 87 00:04:32,480 --> 00:04:35,320 Speaker 1: we've got to My business is more small package. I 88 00:04:35,360 --> 00:04:37,840 Speaker 1: tend to fly stuff to places and then handle line 89 00:04:37,880 --> 00:04:40,440 Speaker 1: halls locally. We do have some long because you're faster, 90 00:04:40,600 --> 00:04:43,240 Speaker 1: Because we're speed and we're small parcel delivery. More so, 91 00:04:44,080 --> 00:04:47,520 Speaker 1: we've been able to secure the trucking network to connect 92 00:04:47,520 --> 00:04:50,479 Speaker 1: our network where we need it for the larger pieces, 93 00:04:50,520 --> 00:04:53,479 Speaker 1: either through our own network or through trusted vendors. I 94 00:04:53,480 --> 00:04:57,080 Speaker 1: think everybody's saying the same thing. There is a we 95 00:04:57,120 --> 00:05:02,200 Speaker 1: need frontline people call them couriers, suckers, uh, clerical staff 96 00:05:02,200 --> 00:05:05,640 Speaker 1: and customer service and clearance. We're all looking for those people, 97 00:05:05,680 --> 00:05:07,240 Speaker 1: and how do you win them over. We do it 98 00:05:07,480 --> 00:05:09,400 Speaker 1: by trying to build a culture that's a great place 99 00:05:09,440 --> 00:05:11,720 Speaker 1: to work and combine that with the right wage rate, 100 00:05:11,760 --> 00:05:14,719 Speaker 1: which is probably the harder or more dynamic thing to 101 00:05:14,839 --> 00:05:17,839 Speaker 1: move as markets change, you need to stay with them. 102 00:05:18,160 --> 00:05:20,680 Speaker 1: We've been able to continue to meet those We're gonna 103 00:05:20,720 --> 00:05:24,719 Speaker 1: hire about two thousand people for this period. We're about there, 104 00:05:24,760 --> 00:05:26,480 Speaker 1: so we're doing a good job at getting them in. 105 00:05:26,720 --> 00:05:28,680 Speaker 1: I've heard others might be struggling with that, but I'm 106 00:05:28,720 --> 00:05:30,760 Speaker 1: confident we'll have the people. And that sort of leads 107 00:05:30,800 --> 00:05:34,280 Speaker 1: the million dollar question of is it getting worse before 108 00:05:34,279 --> 00:05:36,919 Speaker 1: it gets better or are we already on the path 109 00:05:37,040 --> 00:05:40,320 Speaker 1: to getting better. I think what people have asked me 110 00:05:40,440 --> 00:05:44,240 Speaker 1: is will it change dramatically soon? And I don't think so. 111 00:05:44,279 --> 00:05:48,200 Speaker 1: I think where we felt that aviation capacity and ocean 112 00:05:48,240 --> 00:05:51,200 Speaker 1: capacity would be back by now, we're now saying I 113 00:05:51,200 --> 00:05:54,280 Speaker 1: don't think in the first half of it's going to 114 00:05:54,360 --> 00:05:57,839 Speaker 1: recover and be back. So we're bracing for the continued 115 00:05:57,880 --> 00:06:00,120 Speaker 1: need for some of that larger product to move on 116 00:06:00,120 --> 00:06:03,960 Speaker 1: our fixed network. We're thinking more around this time next year, 117 00:06:04,279 --> 00:06:06,760 Speaker 1: maybe some of the capacity is back and it blends out. 118 00:06:07,240 --> 00:06:09,960 Speaker 1: And I think that's my message. We we are carefully 119 00:06:10,000 --> 00:06:13,200 Speaker 1: managing with our customers how much we can take. I 120 00:06:13,240 --> 00:06:16,159 Speaker 1: can take more than what you gave me, but I 121 00:06:16,200 --> 00:06:18,719 Speaker 1: can't take fifty or a hundred. And I think some 122 00:06:18,800 --> 00:06:20,760 Speaker 1: of what you would be hearing is the market there 123 00:06:20,880 --> 00:06:25,440 Speaker 1: is more demand and so if if we could, people 124 00:06:25,440 --> 00:06:27,760 Speaker 1: would want us to take more, but we can't, and 125 00:06:27,760 --> 00:06:31,320 Speaker 1: that's why we're keeping our pricing I think reasonable, and 126 00:06:31,360 --> 00:06:34,880 Speaker 1: we're making our service commitments allowing some growth, but not 127 00:06:35,680 --> 00:06:38,520 Speaker 1: uh infinite growth that some might see it. What what 128 00:06:38,560 --> 00:06:40,760 Speaker 1: about market here? I mean, I'm just visiting here. I 129 00:06:40,760 --> 00:06:43,680 Speaker 1: I normally I live in Berlin, so I get almost 130 00:06:43,680 --> 00:06:46,240 Speaker 1: all my packages via d h L. As you can imagine, 131 00:06:46,320 --> 00:06:49,320 Speaker 1: right FedEx they do some documents and ups. They work 132 00:06:49,360 --> 00:06:51,359 Speaker 1: like two or three days a week, so it's my 133 00:06:51,400 --> 00:06:54,640 Speaker 1: only choice pretty much. Here. It's a much more fragmented market, right. 134 00:06:54,800 --> 00:06:57,719 Speaker 1: What what's it look like in terms of competition, Well, 135 00:06:58,279 --> 00:06:59,719 Speaker 1: I think all of it if you look at what 136 00:06:59,800 --> 00:07:02,960 Speaker 1: comes out through the investor groups for all of us, um, 137 00:07:03,000 --> 00:07:05,320 Speaker 1: I think all of us are growing, and so I 138 00:07:05,360 --> 00:07:08,080 Speaker 1: think where we've taken market share is probably on the 139 00:07:08,080 --> 00:07:11,280 Speaker 1: freight forward or side, the small forwarders who are struggling 140 00:07:11,320 --> 00:07:14,720 Speaker 1: to get the capacity from commercial airlines. More of that 141 00:07:14,840 --> 00:07:17,120 Speaker 1: product is moving to US. I tend not to know 142 00:07:17,160 --> 00:07:18,920 Speaker 1: whether I'm taking it from the other guys or not. 143 00:07:19,040 --> 00:07:21,880 Speaker 1: We're growing, growing faster than we had in the five 144 00:07:21,960 --> 00:07:24,400 Speaker 1: years prior. Alright, Greg, thanks so much for coming and 145 00:07:24,400 --> 00:07:26,920 Speaker 1: really appreciate you joining it. Did you want to know? 146 00:07:27,080 --> 00:07:28,760 Speaker 1: I think just one of the big key takeaways is 147 00:07:28,760 --> 00:07:30,360 Speaker 1: we've heard a lot of companies say it will get 148 00:07:30,360 --> 00:07:32,520 Speaker 1: better in the first half of two, and I think 149 00:07:32,520 --> 00:07:37,160 Speaker 1: really smart points of this could be longer than we thought, 150 00:07:37,240 --> 00:07:39,760 Speaker 1: and everyone should just sort of brace themselves. It's not 151 00:07:39,800 --> 00:07:41,960 Speaker 1: going to be resolved in the first quarter right now. 152 00:07:41,960 --> 00:07:44,600 Speaker 1: I mean I talked to UM the auto maker CEOs 153 00:07:44,600 --> 00:07:48,880 Speaker 1: all the time, and they Volkswagen, BMW, Daimler have all 154 00:07:48,960 --> 00:07:52,080 Speaker 1: said it's gonna get better throughout two, but it's going 155 00:07:52,160 --> 00:07:54,120 Speaker 1: to be incremental. It's not gonna be like all of 156 00:07:54,200 --> 00:07:56,200 Speaker 1: a sudden, oh Q two is here and we have 157 00:07:56,320 --> 00:07:59,400 Speaker 1: enough chips and chips and everything's cool. So it's it's 158 00:07:59,440 --> 00:08:02,640 Speaker 1: gonna be along a drawn out process. Greg hugh Witt, 159 00:08:02,640 --> 00:08:04,640 Speaker 1: thanks so much for coming in. Really appreciate your time. 160 00:08:04,680 --> 00:08:07,720 Speaker 1: Fascinating topic in business. Greg he wod is the chief 161 00:08:07,760 --> 00:08:17,560 Speaker 1: executive officer of d h L Express USA. Let's get 162 00:08:17,680 --> 00:08:20,560 Speaker 1: to the chip maker. I'm just excited because Kurt Sievers 163 00:08:20,680 --> 00:08:24,760 Speaker 1: is here in studio with us, and because they deliver 164 00:08:24,920 --> 00:08:28,560 Speaker 1: chips to some really important products. They deliver chips to 165 00:08:28,600 --> 00:08:31,640 Speaker 1: Apple for example, which I think we all UH love 166 00:08:31,720 --> 00:08:35,040 Speaker 1: and use. They deliver chips to Robert Bosch, which helps 167 00:08:35,120 --> 00:08:37,319 Speaker 1: make the A B S and all the sensors that 168 00:08:37,400 --> 00:08:40,880 Speaker 1: I needed to run my motorcycles. UM, Kurt, talk to 169 00:08:41,000 --> 00:08:45,000 Speaker 1: us about what what what the supply chain bottleneck looks 170 00:08:45,040 --> 00:08:47,679 Speaker 1: like right now in terms of your industry, in terms 171 00:08:47,720 --> 00:08:49,640 Speaker 1: of your company. Yeah, so, first of all, thanks for 172 00:08:49,720 --> 00:08:52,400 Speaker 1: having me today. UM. I I love to speak about 173 00:08:52,440 --> 00:08:55,440 Speaker 1: the supply chain because in the way we look at 174 00:08:55,480 --> 00:08:58,040 Speaker 1: this from a two month perspective, which is all standing, 175 00:08:58,120 --> 00:09:01,439 Speaker 1: so the supply chain is still watched that the demand 176 00:09:01,559 --> 00:09:04,800 Speaker 1: is outstripping supply capability. So while we are growing this 177 00:09:04,960 --> 00:09:10,440 Speaker 1: year like year over here, we are still supply limited. UH. 178 00:09:10,559 --> 00:09:13,120 Speaker 1: In our earning school last week we also informed more 179 00:09:13,200 --> 00:09:16,400 Speaker 1: specifically that we continue to be limited from a supply 180 00:09:16,520 --> 00:09:20,240 Speaker 1: perspective in Q four UH, and I think at least 181 00:09:20,320 --> 00:09:22,920 Speaker 1: in parts of the business, this is going to continue 182 00:09:23,040 --> 00:09:27,120 Speaker 1: probably through the most part of next year. It's interesting. 183 00:09:27,200 --> 00:09:28,760 Speaker 1: I know we want to get to some of the 184 00:09:28,840 --> 00:09:32,240 Speaker 1: supply outlooks, but from a demand perspective as well, analysts 185 00:09:32,240 --> 00:09:35,920 Speaker 1: are saying that You're revenue projections still look conservative just 186 00:09:36,080 --> 00:09:38,920 Speaker 1: given the demand from automotive. Matt's a big fan of 187 00:09:38,920 --> 00:09:43,040 Speaker 1: automotive industrial. Is that really the segments that you see 188 00:09:43,160 --> 00:09:46,640 Speaker 1: carrying us through this big demand cycle? Yeah? You you 189 00:09:46,760 --> 00:09:48,400 Speaker 1: got to think about n XP in the such a 190 00:09:48,440 --> 00:09:51,680 Speaker 1: way that about three quarters of our overall revenue, which 191 00:09:51,800 --> 00:09:55,079 Speaker 1: is eleven billion dollars this year, is going into automotive 192 00:09:55,120 --> 00:09:58,559 Speaker 1: and industrial. And it is borg Warner to Bosh the 193 00:09:59,400 --> 00:10:02,880 Speaker 1: exactly BMW exactly all ending up in cars, but we 194 00:10:02,920 --> 00:10:05,000 Speaker 1: are shipping to Tier one suppliers like the ones you 195 00:10:05,320 --> 00:10:09,160 Speaker 1: you just mentioned. That business is just booming like I've 196 00:10:09,280 --> 00:10:11,480 Speaker 1: never seen it before in the past twenty five years. 197 00:10:11,960 --> 00:10:14,400 Speaker 1: To give you a feel, our automotive revenue this year, 198 00:10:14,480 --> 00:10:17,640 Speaker 1: which is half of n XP, we'll grow about forty 199 00:10:17,720 --> 00:10:20,679 Speaker 1: five percent year over year. Now you will say, well, 200 00:10:20,840 --> 00:10:23,319 Speaker 1: that's a that's a week compared because last year, because 201 00:10:23,320 --> 00:10:26,120 Speaker 1: of the pandemic, everything was low anyway, but it's also 202 00:10:26,240 --> 00:10:29,800 Speaker 1: thirty percent above So even if you're compared to a 203 00:10:29,920 --> 00:10:33,120 Speaker 1: pre pandemic year from a car production perspective, we ship 204 00:10:33,320 --> 00:10:37,720 Speaker 1: thirty more and it's still indeed not enough. As you said, Now, 205 00:10:37,840 --> 00:10:41,480 Speaker 1: why is that it's just an explosion of content increase. 206 00:10:42,600 --> 00:10:45,360 Speaker 1: One reason is electric cars. I mean, we all see 207 00:10:45,440 --> 00:10:47,839 Speaker 1: that there's really a sharp rise of of the of 208 00:10:47,920 --> 00:10:50,199 Speaker 1: the rate of electric cars. We think it's going to 209 00:10:50,280 --> 00:10:53,280 Speaker 1: be almost of the car production this year globally is 210 00:10:53,360 --> 00:10:55,920 Speaker 1: going to be either hybrid or fully electric, which is 211 00:10:55,960 --> 00:10:58,839 Speaker 1: a big number. I mean, it's becoming material and that 212 00:10:59,040 --> 00:11:03,000 Speaker 1: matters to us, as they have about twice the semiconductor 213 00:11:03,080 --> 00:11:05,880 Speaker 1: content to a combustion engine car. So this is this 214 00:11:06,040 --> 00:11:07,600 Speaker 1: is where the chip amount is coming from. I mean 215 00:11:07,640 --> 00:11:10,559 Speaker 1: I was talking with Cloudio Dominicali recently, who's the CEO 216 00:11:10,559 --> 00:11:13,840 Speaker 1: of Ducati, and he was telling me the chip content 217 00:11:14,000 --> 00:11:16,240 Speaker 1: is increasing at such a rate that sometimes there are 218 00:11:16,280 --> 00:11:19,679 Speaker 1: parts he's not even aware need chips. For example, the 219 00:11:19,760 --> 00:11:24,040 Speaker 1: headlights in his motorcycles now need chips because they're controlling 220 00:11:24,080 --> 00:11:27,000 Speaker 1: the led beams to turn in before you turn a corner. 221 00:11:27,120 --> 00:11:30,079 Speaker 1: So it's amazing the amount of content that's going in. 222 00:11:30,640 --> 00:11:33,760 Speaker 1: When does that stop? What? What what's the what's the 223 00:11:33,880 --> 00:11:36,920 Speaker 1: terminal rate there? I I don't I don't see a 224 00:11:37,040 --> 00:11:40,080 Speaker 1: stop at all. Because all the big megatrends which are 225 00:11:40,200 --> 00:11:45,319 Speaker 1: driving innovation and automotive and those are electrification, autonomy. Think 226 00:11:45,360 --> 00:11:48,600 Speaker 1: about the whole idea of the autonomous cars and safer cars, 227 00:11:48,640 --> 00:11:51,400 Speaker 1: so all these assistance systems which are actually protecting you 228 00:11:51,600 --> 00:11:54,920 Speaker 1: from from bad accidents, and the connected car, the whole 229 00:11:54,960 --> 00:11:58,280 Speaker 1: idea that your car is actually getting software updates over 230 00:11:58,360 --> 00:12:01,400 Speaker 1: the air, or that your car can be can get 231 00:12:01,480 --> 00:12:06,360 Speaker 1: better performance through software updates. All of those innovation streams 232 00:12:06,720 --> 00:12:11,520 Speaker 1: rely uniquely on semiconductors. So no, I actually don't see 233 00:12:11,559 --> 00:12:14,160 Speaker 1: that ending. I would actually say a car in the 234 00:12:14,480 --> 00:12:17,160 Speaker 1: in the next ten fifteen years is just becoming more 235 00:12:17,240 --> 00:12:20,319 Speaker 1: and more silicon on wheels. Talk to us about the 236 00:12:20,520 --> 00:12:23,800 Speaker 1: supply side of the equation. I know here in the US, 237 00:12:23,880 --> 00:12:27,760 Speaker 1: the Biden administration has talked a lot about um bringing 238 00:12:28,080 --> 00:12:32,400 Speaker 1: more chips to being manufactured domestically, trying to protect that 239 00:12:32,559 --> 00:12:36,959 Speaker 1: supply chain. But will it ramp up fast enough? How 240 00:12:37,040 --> 00:12:39,800 Speaker 1: do you see that supply and if there is any 241 00:12:39,960 --> 00:12:43,400 Speaker 1: issues here in the US. I think the the entire 242 00:12:43,520 --> 00:12:46,360 Speaker 1: government initiative is fantastic. So I've been part of this 243 00:12:46,600 --> 00:12:48,720 Speaker 1: right from the start. I think we started in April 244 00:12:48,800 --> 00:12:51,839 Speaker 1: with the White House Summit under the leadership of Joe Biden, 245 00:12:53,040 --> 00:12:56,319 Speaker 1: and I really also from a global perspective, I like 246 00:12:56,440 --> 00:12:59,360 Speaker 1: the fact that the US is very proactive to address 247 00:12:59,440 --> 00:13:01,640 Speaker 1: this problem. I think the Chips Act with a fifty 248 00:13:01,720 --> 00:13:07,360 Speaker 1: two billion dollar bill is going to make a difference. Now, 249 00:13:07,559 --> 00:13:10,520 Speaker 1: is it fast enough, No, it just can't be fast enough. 250 00:13:10,600 --> 00:13:13,520 Speaker 1: It takes three years to build a chip factory. Ah. 251 00:13:14,440 --> 00:13:17,240 Speaker 1: Yet if you don't start today, it's not going to 252 00:13:17,320 --> 00:13:20,120 Speaker 1: be there in three years. So that's why. Since this 253 00:13:20,280 --> 00:13:22,679 Speaker 1: is a structural move, as we just discussed, I mean, 254 00:13:22,880 --> 00:13:25,720 Speaker 1: these are not like short term spikes from a demand perspective, 255 00:13:25,800 --> 00:13:28,839 Speaker 1: but it's very sustainable. For that reason, I think it 256 00:13:29,000 --> 00:13:32,199 Speaker 1: does make sense. We have three large facilities here in 257 00:13:32,240 --> 00:13:34,400 Speaker 1: the US, so we have two big waver FAPs, so 258 00:13:34,520 --> 00:13:39,679 Speaker 1: waivers are the course in in Austin, Texas and one 259 00:13:39,800 --> 00:13:43,920 Speaker 1: in Arizona. Uh. And we really think it's the right 260 00:13:44,000 --> 00:13:47,000 Speaker 1: way to address the problem to look at domestic production 261 00:13:47,040 --> 00:13:49,560 Speaker 1: and try to boost it as much as we can. Now, again, 262 00:13:49,640 --> 00:13:51,640 Speaker 1: it's not going to be fast enough if you think 263 00:13:51,679 --> 00:13:54,760 Speaker 1: about tomorrow mornings supply challenge, but it will be good 264 00:13:54,840 --> 00:13:57,280 Speaker 1: for the supply challenges of the of the next five years. 265 00:13:57,400 --> 00:13:59,000 Speaker 1: I think it's also interesting it has a lot about 266 00:13:59,040 --> 00:14:02,600 Speaker 1: the competitiveness of those states that you put your wafer 267 00:14:02,679 --> 00:14:04,480 Speaker 1: fabs there, but we don't have time to go into that. Kurt, 268 00:14:04,520 --> 00:14:06,720 Speaker 1: thanks so much for joining us. Kurt Sievers, chief executive 269 00:14:06,720 --> 00:14:13,320 Speaker 1: officer of n XP Semiconductors. Let's talk about what's going 270 00:14:13,360 --> 00:14:16,439 Speaker 1: on in these markets. Andrews Person joins US, chief investment 271 00:14:16,480 --> 00:14:20,800 Speaker 1: Officer of Global fixed Income at New Veen and UM Andres. 272 00:14:20,840 --> 00:14:24,040 Speaker 1: In terms of what we see in rates today, it's 273 00:14:24,080 --> 00:14:26,760 Speaker 1: been pretty uh well, not just today, over the last 274 00:14:27,160 --> 00:14:30,360 Speaker 1: few days, it's been pretty interesting. Does the US tenure 275 00:14:30,640 --> 00:14:34,040 Speaker 1: one fifties six one seven make sense to you given 276 00:14:34,600 --> 00:14:37,640 Speaker 1: um uh cp I at six point two percent year 277 00:14:37,680 --> 00:14:42,600 Speaker 1: over year? Yeah, thanks, thanks Matt um. Yeah, I would 278 00:14:42,640 --> 00:14:45,240 Speaker 1: say I would say that makes a lot more sense 279 00:14:45,320 --> 00:14:47,760 Speaker 1: now than at least earlier in the week or even 280 00:14:47,880 --> 00:14:51,880 Speaker 1: last week. We think that the rally last week really 281 00:14:52,320 --> 00:14:55,600 Speaker 1: was really overdone in online that he also kind of 282 00:14:55,640 --> 00:14:58,000 Speaker 1: moving too lowly and too low and at this point 283 00:14:58,800 --> 00:15:00,960 Speaker 1: kind of catching up a bit for the CPI and 284 00:15:01,240 --> 00:15:04,320 Speaker 1: even the thirty year options. So so generally our view 285 00:15:04,440 --> 00:15:07,000 Speaker 1: is that you also are still going to be grinding higher, 286 00:15:07,160 --> 00:15:11,000 Speaker 1: and we're expecting something like one five of the ten 287 00:15:11,080 --> 00:15:14,400 Speaker 1: year later this year, so we still feel like there's 288 00:15:14,480 --> 00:15:17,360 Speaker 1: room for yields to continue to move higher in the tenure. 289 00:15:17,960 --> 00:15:20,120 Speaker 1: But I think there's a lot of technical factors that 290 00:15:20,240 --> 00:15:23,200 Speaker 1: were impacting treasures more broadly, a lot of cross currents 291 00:15:23,280 --> 00:15:25,960 Speaker 1: going on. So so some of these near term moves 292 00:15:26,000 --> 00:15:28,680 Speaker 1: that we've been seeing, it's just kind of the market 293 00:15:28,800 --> 00:15:31,520 Speaker 1: having to digest a lot of the different data points 294 00:15:31,600 --> 00:15:34,960 Speaker 1: coming through, and then the different technicals that they are 295 00:15:35,120 --> 00:15:38,360 Speaker 1: playing in a factor as well. So I would expect 296 00:15:38,720 --> 00:15:41,680 Speaker 1: still volatility here for for the next few months as 297 00:15:41,720 --> 00:15:44,920 Speaker 1: we're kind of shifting through all these cross times. And 298 00:15:44,960 --> 00:15:47,040 Speaker 1: I'm glad that you brought up the technicals because I 299 00:15:47,120 --> 00:15:50,360 Speaker 1: think a lot of market participants have been confused while 300 00:15:50,400 --> 00:15:53,120 Speaker 1: we're still at a one fifty roughly on the tenure 301 00:15:53,200 --> 00:15:56,320 Speaker 1: and below two percent on twenties and thirties, and a 302 00:15:56,400 --> 00:16:00,640 Speaker 1: lot of this has been um As you say, technical factors, 303 00:16:01,200 --> 00:16:05,280 Speaker 1: When do you expect those to um fall down a 304 00:16:05,400 --> 00:16:09,920 Speaker 1: little bit and yields to rise reflecting more the fundamental 305 00:16:10,080 --> 00:16:14,640 Speaker 1: data that you describe. Yeah, No, I think it's going 306 00:16:14,680 --> 00:16:16,880 Speaker 1: to take a little bit more time here. I think, 307 00:16:17,240 --> 00:16:21,800 Speaker 1: you know, we're still very unprecedented times with central banks 308 00:16:21,840 --> 00:16:24,800 Speaker 1: and obviously just that being incredibly involved in the markets 309 00:16:24,920 --> 00:16:28,360 Speaker 1: and the tapering is is obviously top of mind from 310 00:16:28,400 --> 00:16:31,520 Speaker 1: all investors, and that is going to be I think 311 00:16:31,600 --> 00:16:36,000 Speaker 1: the key factor to start that normalization that you're kind 312 00:16:36,000 --> 00:16:39,320 Speaker 1: of referring to my mind. So we're moving into the 313 00:16:39,440 --> 00:16:42,040 Speaker 1: tapering kind of top pace over the next level months. 314 00:16:42,440 --> 00:16:45,760 Speaker 1: Um some of that you know, unprecedented kind of TI 315 00:16:45,920 --> 00:16:48,640 Speaker 1: low levels that we've been seeing should be starting to online. 316 00:16:48,760 --> 00:16:51,160 Speaker 1: So it's a little bit of that supply demand aspect 317 00:16:51,240 --> 00:16:54,240 Speaker 1: of it. But um, I don't think it's going to happen, 318 00:16:54,600 --> 00:16:57,040 Speaker 1: you know, overnight. We saw in the thirty year option 319 00:16:57,280 --> 00:17:01,560 Speaker 1: earlier this this week that it's it's still a pretty 320 00:17:01,680 --> 00:17:04,000 Speaker 1: rocky environment. The Street had to take down a big 321 00:17:04,080 --> 00:17:06,719 Speaker 1: portion of that and had the longest tails and two 322 00:17:06,800 --> 00:17:10,120 Speaker 1: thousand and eleven, so it's really you can really still 323 00:17:10,320 --> 00:17:13,080 Speaker 1: tell that there's a lot of movement parts and a 324 00:17:13,119 --> 00:17:15,680 Speaker 1: lot of tactical factors that I think will take some time, 325 00:17:15,800 --> 00:17:18,159 Speaker 1: probably several months before we kind of work through that. 326 00:17:18,600 --> 00:17:22,119 Speaker 1: What are you expecting in terms of corporate issuance in 327 00:17:22,240 --> 00:17:24,960 Speaker 1: this environment, I mean, does it do do you see 328 00:17:25,200 --> 00:17:29,920 Speaker 1: them still running out to raise as much as they can. Yeah, 329 00:17:30,080 --> 00:17:34,240 Speaker 1: we were expecting still a very healthy corporate issuance, both 330 00:17:34,240 --> 00:17:36,760 Speaker 1: from the investment rates side and the high side, perhaps 331 00:17:36,840 --> 00:17:39,879 Speaker 1: not at the levels that we've seen here today because 332 00:17:39,880 --> 00:17:42,240 Speaker 1: a lot of the company has naturally been able to 333 00:17:42,320 --> 00:17:44,440 Speaker 1: take advantage of the lower rates, kind of locking in 334 00:17:45,160 --> 00:17:48,720 Speaker 1: some nice coupons and and kicking that maturity wall out, 335 00:17:49,240 --> 00:17:52,479 Speaker 1: which we think is healthy. But as companies are now 336 00:17:52,600 --> 00:17:56,200 Speaker 1: shifting towards a little bit more comfortable around expanding and 337 00:17:56,400 --> 00:17:59,880 Speaker 1: spending capex and thinking through you know, the next phase, 338 00:18:00,240 --> 00:18:03,440 Speaker 1: there's gonna be some some funding needs from that perspective 339 00:18:03,480 --> 00:18:05,440 Speaker 1: as well. So I think we're gonna have a little 340 00:18:05,440 --> 00:18:08,760 Speaker 1: bit better balance perhaps going into two thousand and twenty two, 341 00:18:08,920 --> 00:18:13,080 Speaker 1: but generally we would expect still quite an active new 342 00:18:13,119 --> 00:18:17,000 Speaker 1: issuance um at pace going into next year. And when 343 00:18:17,040 --> 00:18:19,320 Speaker 1: you take a look at the Bloomberg terminal, I'm just 344 00:18:19,440 --> 00:18:22,280 Speaker 1: hooking taking a look at investment grade spreads over treasuries. 345 00:18:22,280 --> 00:18:25,240 Speaker 1: I mean, you're still a really tight eight seven basis 346 00:18:25,280 --> 00:18:28,280 Speaker 1: points high yield just two d and eighty basis points 347 00:18:28,320 --> 00:18:36,480 Speaker 1: and spread over treasuries. Is that sound fundamentally strong to you? 348 00:18:36,760 --> 00:18:39,560 Speaker 1: Or is a lot of this fomo and yield seeking 349 00:18:39,720 --> 00:18:42,080 Speaker 1: because there's nowhere else to get yield in this market, 350 00:18:44,440 --> 00:18:46,960 Speaker 1: I would say there there's a little bit of both. 351 00:18:47,400 --> 00:18:50,879 Speaker 1: We've kind of talked about the markets at these levels 352 00:18:51,000 --> 00:18:54,000 Speaker 1: not being particularly exciting from a spread perspective, but we 353 00:18:54,080 --> 00:18:56,399 Speaker 1: do think they're gonna be holding up. We talked about, 354 00:18:57,280 --> 00:18:59,600 Speaker 1: you know, markets being sort of priced for a reality, 355 00:18:59,680 --> 00:19:02,520 Speaker 1: not price for perfection. The reality is that we are 356 00:19:03,160 --> 00:19:08,439 Speaker 1: seeing very strong fundamentals. Economic growth is healthy, the faults 357 00:19:08,480 --> 00:19:12,600 Speaker 1: are expected to be record lows around one percent, perhaps 358 00:19:12,640 --> 00:19:16,000 Speaker 1: even lower. So I do think that we do have 359 00:19:16,160 --> 00:19:19,000 Speaker 1: a lot of factors that are playing in are justifying 360 00:19:19,080 --> 00:19:23,280 Speaker 1: where we are from from current levels. Um that being sad, 361 00:19:23,520 --> 00:19:26,200 Speaker 1: I think just the fact that we have low yield 362 00:19:26,320 --> 00:19:29,760 Speaker 1: environment across the globe continues to be the main driver 363 00:19:29,920 --> 00:19:34,200 Speaker 1: of investors reaching for yields. So our expectation is that 364 00:19:34,600 --> 00:19:38,359 Speaker 1: this kind of carry trade will continue and being an 365 00:19:38,359 --> 00:19:42,040 Speaker 1: attractive way to playing fixed income, and we continue to 366 00:19:42,119 --> 00:19:46,840 Speaker 1: be more comfortable taking corporate credit risk over treasuries, and 367 00:19:46,920 --> 00:19:49,680 Speaker 1: we're also comfortable kind of dipping down to the lower 368 00:19:49,800 --> 00:19:54,000 Speaker 1: quality parts of the credit markets. Anders, thanks so much 369 00:19:54,040 --> 00:19:57,320 Speaker 1: for joining us today, Honors person there, chief investment officer 370 00:19:57,440 --> 00:20:00,760 Speaker 1: of Global fixed Income at Nouvene talking to US about 371 00:20:00,840 --> 00:20:07,920 Speaker 1: the rates situation and his inflation outlook as well. Let's 372 00:20:07,960 --> 00:20:12,280 Speaker 1: get over right now to Frank's Frank Holmes joining us. 373 00:20:12,440 --> 00:20:15,880 Speaker 1: As I had said before, he is the chief Investment 374 00:20:15,920 --> 00:20:18,800 Speaker 1: Officer as well as the CEO US Global Investors, and 375 00:20:19,280 --> 00:20:22,960 Speaker 1: we're gonna talk about some of the E t F, 376 00:20:23,200 --> 00:20:25,359 Speaker 1: some of the hot products and the jets. E t 377 00:20:25,560 --> 00:20:27,240 Speaker 1: F is one that I want to start with as 378 00:20:27,720 --> 00:20:31,840 Speaker 1: we reopen um and get back to normal life again. 379 00:20:32,480 --> 00:20:39,400 Speaker 1: What do you think about travel and the consumer? Well, 380 00:20:39,440 --> 00:20:42,800 Speaker 1: I think we're gonna have a huge surgeon and travel 381 00:20:43,000 --> 00:20:47,240 Speaker 1: with November eight allowing Europeans to fly in without being 382 00:20:47,320 --> 00:20:50,320 Speaker 1: stuck in Mexico City or Canada for two weeks. I 383 00:20:50,440 --> 00:20:54,480 Speaker 1: recently flew to Sweden full flight, going over half empty 384 00:20:54,560 --> 00:20:58,240 Speaker 1: coming back. I flew to Dubai last week and same thing, 385 00:20:58,440 --> 00:21:02,200 Speaker 1: full flying over empty coming back. Now, I think it 386 00:21:02,400 --> 00:21:06,439 Speaker 1: is wide open, especially coming into Thanksgiving and the Christmas season, 387 00:21:07,119 --> 00:21:10,640 Speaker 1: We're gonna have a huge inbound from Europe. Interesting though 388 00:21:10,640 --> 00:21:13,880 Speaker 1: about the health of the consumer as well. In many 389 00:21:13,960 --> 00:21:17,200 Speaker 1: cases they've said that the consumer is at least some 390 00:21:17,400 --> 00:21:20,760 Speaker 1: of them more wealthy now than they were before the pandemic, 391 00:21:20,880 --> 00:21:23,560 Speaker 1: and that pent up demand and that willingness to travel 392 00:21:23,960 --> 00:21:26,720 Speaker 1: is in full force. How are you thinking about that 393 00:21:26,840 --> 00:21:31,399 Speaker 1: as well? When you think about the consumer. Absolutely, just 394 00:21:31,520 --> 00:21:33,680 Speaker 1: take a look at hotel rates in New York City. 395 00:21:35,680 --> 00:21:38,760 Speaker 1: It's just amazing to see how the price tig has 396 00:21:38,800 --> 00:21:41,720 Speaker 1: gone up dramatically. And we look at Florida, we look 397 00:21:41,760 --> 00:21:45,679 Speaker 1: at Southwest is flying from Phoenix to Cabo St. Lucas 398 00:21:46,600 --> 00:21:50,719 Speaker 1: in Mexico for tourism. So there's no doubt tourism as 399 00:21:50,840 --> 00:21:55,600 Speaker 1: robust in Las Vegas and right across the nation. So 400 00:21:55,840 --> 00:21:59,000 Speaker 1: I think we're gonna see big travel everyone in the 401 00:21:59,080 --> 00:22:02,199 Speaker 1: Northern States, particular the US being able to find new 402 00:22:02,280 --> 00:22:05,000 Speaker 1: locations in the self, and the same thing I'm told 403 00:22:05,119 --> 00:22:07,680 Speaker 1: is hopping. In Europe. There's a couple of new airlines 404 00:22:07,720 --> 00:22:10,920 Speaker 1: have been created like Breeze this year, and that's predominantly 405 00:22:11,000 --> 00:22:13,080 Speaker 1: for the tourists and for the person wants to get 406 00:22:13,119 --> 00:22:16,200 Speaker 1: out of cold weather imp myself. In fact, don't you. Telecom, 407 00:22:16,600 --> 00:22:20,200 Speaker 1: the German incumbent, today said it expects a better full 408 00:22:20,280 --> 00:22:25,240 Speaker 1: year profit than previously because European tourists are moving around 409 00:22:25,320 --> 00:22:27,760 Speaker 1: country to country, roaming rates are going up and it's 410 00:22:27,800 --> 00:22:31,480 Speaker 1: making bigger margins. There is still though a supply and 411 00:22:31,680 --> 00:22:34,399 Speaker 1: demand mismatch. I mean, on the good side, you see that. 412 00:22:34,640 --> 00:22:36,480 Speaker 1: But Frank, you brought it up in terms of the 413 00:22:36,560 --> 00:22:39,200 Speaker 1: flights coming back are empty and I know, Um, I 414 00:22:39,320 --> 00:22:41,440 Speaker 1: just flew in here from Berlin on a on a 415 00:22:41,560 --> 00:22:45,840 Speaker 1: half empty flight and um, the products that I need 416 00:22:45,920 --> 00:22:49,239 Speaker 1: aren't quite there yet, the legs that I need, Um, 417 00:22:49,680 --> 00:22:51,040 Speaker 1: how long do you think that's going to take to 418 00:22:51,119 --> 00:22:55,800 Speaker 1: work out? Because we're almost at Thanksgiving. Yes, I think that, 419 00:22:56,280 --> 00:22:58,320 Speaker 1: I think totally. It was a target the other day 420 00:22:58,320 --> 00:23:01,040 Speaker 1: and they said buying Christmas lights or anything you want 421 00:23:01,080 --> 00:23:03,040 Speaker 1: to buy him. Now we have nothing to replace until 422 00:23:03,080 --> 00:23:06,600 Speaker 1: the new year, so inventory is very tight. So it's 423 00:23:06,640 --> 00:23:09,760 Speaker 1: interesting in all the for jets, we've had huge inflows 424 00:23:09,840 --> 00:23:12,320 Speaker 1: this past week with this November eighth dight on the 425 00:23:12,440 --> 00:23:16,240 Speaker 1: expectations of bigger travel. Uh. And when I created the jets, 426 00:23:16,280 --> 00:23:19,080 Speaker 1: it was because I noticed back six years ago that 427 00:23:19,160 --> 00:23:22,320 Speaker 1: there was a huge pricing power of the airlines were 428 00:23:23,040 --> 00:23:25,359 Speaker 1: raising their prices and they had all these inciliatory fees 429 00:23:25,480 --> 00:23:29,640 Speaker 1: and they did take off before COVID. Well, what I'm 430 00:23:29,720 --> 00:23:32,720 Speaker 1: noticing now is the cargo cargo were the best performing 431 00:23:33,040 --> 00:23:35,440 Speaker 1: airlines during the crisis and they've come out of it 432 00:23:35,920 --> 00:23:39,879 Speaker 1: making huge increases in their fees for high blockchain, with 433 00:23:40,040 --> 00:23:43,920 Speaker 1: some chair off getting equipment from Japan and as such 434 00:23:43,920 --> 00:23:48,040 Speaker 1: as in China and South Korea flying over to Europe. 435 00:23:48,119 --> 00:23:53,280 Speaker 1: It's it costs up tenfold. The CEO of d h 436 00:23:53,440 --> 00:23:57,399 Speaker 1: L USA, he was telling us there forwarding margins are 437 00:23:57,680 --> 00:24:01,879 Speaker 1: making his business this year. Absolutely, So we're launching a 438 00:24:01,960 --> 00:24:05,040 Speaker 1: new et F called c and see this guy and 439 00:24:05,840 --> 00:24:13,600 Speaker 1: it's dry ships and airlines, just cargo. Because I believe 440 00:24:13,640 --> 00:24:16,440 Speaker 1: we're going to live with this inflation for the next 441 00:24:16,520 --> 00:24:19,600 Speaker 1: three years. It's just not going to quickly resolve itself, 442 00:24:19,960 --> 00:24:22,680 Speaker 1: all right. So I'm going to steal the classic Matt 443 00:24:22,800 --> 00:24:26,760 Speaker 1: Miller question. When we hear higher inflation, the recent narrative 444 00:24:26,840 --> 00:24:30,719 Speaker 1: is said, oh, maybe bitcoin or cryptocurrencies or the new 445 00:24:30,800 --> 00:24:34,439 Speaker 1: inflationary hedge. Maybe they're replacing gold is the store of value. 446 00:24:34,840 --> 00:24:37,400 Speaker 1: And then you see crypto and bitcoin fall a little 447 00:24:37,440 --> 00:24:41,399 Speaker 1: bit today despite some of the higher inflationary figures that 448 00:24:41,520 --> 00:24:44,680 Speaker 1: we've gotten. How are you thinking about crypto as a 449 00:24:44,800 --> 00:24:47,760 Speaker 1: store of value as an inflationary hedge? Did you did 450 00:24:47,800 --> 00:24:49,920 Speaker 1: you hear Frank just say blockchain? I thought I heard 451 00:24:50,520 --> 00:24:54,680 Speaker 1: why I just cut up my next question. Well, yeah, 452 00:24:55,160 --> 00:24:57,719 Speaker 1: I you know yours ago four years ago, I couldn't 453 00:24:58,160 --> 00:24:59,879 Speaker 1: create an et F and it's still not been down. 454 00:25:00,000 --> 00:25:04,000 Speaker 1: It could buy bitcoin, etherorium. So I launched high Blockchain Technology, 455 00:25:04,080 --> 00:25:06,720 Speaker 1: which is the first cryptal mining company. And what I 456 00:25:06,840 --> 00:25:08,920 Speaker 1: did see and for the reason for that is because 457 00:25:08,960 --> 00:25:12,240 Speaker 1: it's all over the world. Like Bloomberg television, Bloomberg radio 458 00:25:12,800 --> 00:25:17,879 Speaker 1: is everywhere, well, investing in crypto is everywhere. Investing in 459 00:25:18,000 --> 00:25:23,680 Speaker 1: stocks is not everywhere, sold out conferences in Miami, in Berlin, uh, 460 00:25:24,440 --> 00:25:28,800 Speaker 1: in Paris, in London, England and Singapore. UM. So, I 461 00:25:28,960 --> 00:25:32,760 Speaker 1: think that the crypto concept and bitcoin is a store value, 462 00:25:33,280 --> 00:25:36,800 Speaker 1: no doubt, has huge legs to it. Uh And it 463 00:25:36,920 --> 00:25:40,080 Speaker 1: also has a huge demographic shift. In the next twenty 464 00:25:40,160 --> 00:25:45,000 Speaker 1: five years, Baby boomers like myself will be transferring ten 465 00:25:45,080 --> 00:25:49,720 Speaker 1: three in dollars to Generation X Y and millennials, and 466 00:25:50,200 --> 00:25:52,800 Speaker 1: they're all used to digital digital money. I grew up 467 00:25:52,800 --> 00:25:55,240 Speaker 1: with monopoly money. They grew up with digital money from gaming. 468 00:25:55,640 --> 00:25:58,080 Speaker 1: So I do think there's a big shift, and I 469 00:25:58,200 --> 00:26:01,679 Speaker 1: do think that bitcoin is becoming a store of value. 470 00:26:01,760 --> 00:26:04,040 Speaker 1: But you really can't wear it unless it looks like gold. 471 00:26:04,520 --> 00:26:07,320 Speaker 1: So gold is an important part of a gold is 472 00:26:07,359 --> 00:26:11,359 Speaker 1: gold jewelry and all demand for gold is for love 473 00:26:12,119 --> 00:26:15,119 Speaker 1: and it's highly correlated to rising g D peper capital 474 00:26:15,200 --> 00:26:18,000 Speaker 1: in India and China in the Middle East. So I 475 00:26:18,160 --> 00:26:20,600 Speaker 1: think the gold is the big lagging trade here in 476 00:26:20,640 --> 00:26:22,960 Speaker 1: the next couple of months. It's way undervalued on a 477 00:26:23,040 --> 00:26:26,320 Speaker 1: relative basis, quite well over the last week. I mean, 478 00:26:26,480 --> 00:26:28,639 Speaker 1: I think it came down a little bit today. Let 479 00:26:28,720 --> 00:26:32,159 Speaker 1: me just pull up X A U here. And the 480 00:26:32,240 --> 00:26:34,920 Speaker 1: thing is gold is also you can have an e 481 00:26:35,040 --> 00:26:38,240 Speaker 1: T f UM powered by the underlying with gold, and 482 00:26:38,280 --> 00:26:39,960 Speaker 1: you can't have that yet with bitcoin, at least not 483 00:26:39,960 --> 00:26:43,720 Speaker 1: in the US. You need electricity for your bitcoin to 484 00:26:43,800 --> 00:26:47,879 Speaker 1: be functioning. Uh. For gold, Uh like when Dubai right 485 00:26:47,920 --> 00:26:50,480 Speaker 1: at the airport, you can get care of gold jewelry 486 00:26:50,840 --> 00:26:54,560 Speaker 1: and you pay by the graham, by the different designers, uh, 487 00:26:55,000 --> 00:26:57,960 Speaker 1: and you can convert it to cash. So I think 488 00:26:58,040 --> 00:26:59,720 Speaker 1: that you know a big part of the world of 489 00:27:00,080 --> 00:27:03,320 Speaker 1: the US gold has treated both as jewelry and love 490 00:27:04,040 --> 00:27:09,800 Speaker 1: and money. Frank, great talking to you as always, UM, 491 00:27:09,880 --> 00:27:13,359 Speaker 1: real pleasure getting your insight and also to talk about 492 00:27:13,400 --> 00:27:15,800 Speaker 1: these products that you've created in the business that that 493 00:27:15,960 --> 00:27:19,600 Speaker 1: you've created pretty impressive. Frank Home, CEO and ce IO 494 00:27:19,720 --> 00:27:22,760 Speaker 1: at US Global Investors, talking to us about his et 495 00:27:22,920 --> 00:27:26,280 Speaker 1: F products, as well as his take on the market 496 00:27:26,400 --> 00:27:31,879 Speaker 1: and inflation hedges. Thanks for listening to the Bloomberg Markets podcast. 497 00:27:32,320 --> 00:27:35,440 Speaker 1: You can subscribe and listen to interviews with Apple Podcasts 498 00:27:35,680 --> 00:27:39,560 Speaker 1: or whatever podcast platform you prefer. I'm Matt Miller. I'm 499 00:27:39,600 --> 00:27:43,639 Speaker 1: on Twitter at Matt Miller, three pt on Fall Sweeney 500 00:27:43,640 --> 00:27:46,280 Speaker 1: I'm on Twitter at pt Sweeney. Before the podcast. You 501 00:27:46,320 --> 00:27:48,680 Speaker 1: can always catch us worldwide at Bloomberg Radio.