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 --> 00:00:15,560
Speaker 1: with essential market moving news. Find the Bloomberg Markets podcast

5
00:00:15,560 --> 00:00:18,479
Speaker 1: called Apple Podcasts or wherever you listen to podcasts, and

6
00:00:18,480 --> 00:00:22,080
Speaker 1: at Bloomberg dot com slash podcast. Let's get over though,

7
00:00:22,160 --> 00:00:24,599
Speaker 1: right now to Roger Dickerman. He's the founder and CEO

8
00:00:24,640 --> 00:00:28,760
Speaker 1: of artifacts UM. The website is artifacts a R T

9
00:00:28,920 --> 00:00:31,680
Speaker 1: I f e X dot Art. They just held a

10
00:00:32,000 --> 00:00:37,280
Speaker 1: show UM Digital Icons plus Miami or Digital Icons and

11
00:00:37,360 --> 00:00:42,280
Speaker 1: Miami on June seven with a bunch of artwork, original artwork,

12
00:00:42,320 --> 00:00:44,920
Speaker 1: three D sculpture and f t s. That should be

13
00:00:44,920 --> 00:00:46,440
Speaker 1: your clue as to what we're gonna talk about, so

14
00:00:46,560 --> 00:00:50,320
Speaker 1: non fungible tokens. Roger, thanks for joining us. What what

15
00:00:50,440 --> 00:00:53,639
Speaker 1: did you actually show at the show? Are we talking

16
00:00:53,640 --> 00:00:56,560
Speaker 1: about physical art that you hang on the wall, three

17
00:00:56,640 --> 00:00:59,400
Speaker 1: D sculptures like three D in real life? Or was

18
00:00:59,480 --> 00:01:03,200
Speaker 1: there the were these all sort of computer renders that

19
00:01:03,320 --> 00:01:05,720
Speaker 1: It's a pleasure to be here. Thank you for having me.

20
00:01:05,840 --> 00:01:08,360
Speaker 1: So what we showed was digital art and so the

21
00:01:08,400 --> 00:01:11,000
Speaker 1: proxy is the real world. Imagine a painting on your

22
00:01:11,040 --> 00:01:13,560
Speaker 1: wall that would be a two D and imagine a

23
00:01:13,680 --> 00:01:16,399
Speaker 1: sculptor took that painting, a character in that painting, and

24
00:01:16,440 --> 00:01:19,440
Speaker 1: made it a literal sculpture three D version of that.

25
00:01:19,760 --> 00:01:21,560
Speaker 1: We're doing that in the digital sphere. So we have

26
00:01:21,680 --> 00:01:24,320
Speaker 1: the two D version of an artist's artwork, and we

27
00:01:24,400 --> 00:01:27,280
Speaker 1: have a digital sculpture that can be displayed all over

28
00:01:27,319 --> 00:01:30,520
Speaker 1: the place in three D. Four Can you define, Roger,

29
00:01:30,800 --> 00:01:37,280
Speaker 1: what is a non fungible token? Think digital ownership. So

30
00:01:37,480 --> 00:01:40,520
Speaker 1: think a digital artist for the past several decades making

31
00:01:40,560 --> 00:01:43,760
Speaker 1: fabulous art, doing it on behalf of a brand, a commission,

32
00:01:43,760 --> 00:01:46,399
Speaker 1: a contract. They had no way to do that on

33
00:01:46,440 --> 00:01:48,720
Speaker 1: their own. One one of my favorite stories an artist

34
00:01:48,760 --> 00:01:51,720
Speaker 1: named Bill ellis part of the Artifacts project. He worked

35
00:01:51,720 --> 00:01:54,360
Speaker 1: for an ad agency and he had Nike Lebron James

36
00:01:54,360 --> 00:01:56,920
Speaker 1: come to him for his work, but he had to

37
00:01:56,960 --> 00:01:58,920
Speaker 1: do it under the ad agency's brand. That was a

38
00:01:58,960 --> 00:02:02,320
Speaker 1: sixty five dollar contract. He got paid less than five dollars.

39
00:02:02,680 --> 00:02:05,840
Speaker 1: Non Flungible tokens allow a creator like that to go

40
00:02:05,920 --> 00:02:09,400
Speaker 1: directly to consumer, to collector with valuable artwork and make

41
00:02:09,400 --> 00:02:15,240
Speaker 1: a transaction. But what I don't understand is say, um,

42
00:02:15,280 --> 00:02:18,720
Speaker 1: I made a three D digital render of a Ducati

43
00:02:18,800 --> 00:02:21,920
Speaker 1: Panagali and I photo shot by dog Steve driving it.

44
00:02:22,840 --> 00:02:25,920
Speaker 1: I could sell the n f T to Paul. That

45
00:02:26,040 --> 00:02:30,400
Speaker 1: guarantees him the rights to own that digital file, and

46
00:02:30,400 --> 00:02:33,160
Speaker 1: then I could just give it away copies of it

47
00:02:33,240 --> 00:02:36,520
Speaker 1: to anyone else. Right, So does Paul really own it?

48
00:02:37,720 --> 00:02:40,680
Speaker 1: This is a great question, right, he owns the spot

49
00:02:40,680 --> 00:02:42,840
Speaker 1: on the blockchain. Now you can look at physical artwork.

50
00:02:42,840 --> 00:02:47,480
Speaker 1: To look at museum famously or infamously housing forgeries for

51
00:02:47,639 --> 00:02:52,280
Speaker 1: hundreds of years, right, unbeknownst to anybody, physical paintings can

52
00:02:52,280 --> 00:02:55,720
Speaker 1: be forged to. Physical drawings can be forged to. An

53
00:02:55,800 --> 00:02:59,239
Speaker 1: artist can overprints, right unknown to the collectors, you face

54
00:02:59,320 --> 00:03:01,959
Speaker 1: these same issue whose ownership matters? It's faked in the

55
00:03:02,040 --> 00:03:04,560
Speaker 1: human DNA. People want something and they want the true

56
00:03:04,680 --> 00:03:06,280
Speaker 1: version of that thing. And if he's help with that,

57
00:03:07,320 --> 00:03:13,280
Speaker 1: how does a consumer you know that they're getting I

58
00:03:13,320 --> 00:03:17,480
Speaker 1: guess the real thing versus fake? I mean, do you

59
00:03:17,560 --> 00:03:20,000
Speaker 1: kind of think this investment market is safe? I guess that.

60
00:03:20,160 --> 00:03:22,400
Speaker 1: I can't think of a different word, But do you

61
00:03:22,400 --> 00:03:24,360
Speaker 1: think it's safe? It doesn't even have to be fake? Right,

62
00:03:24,400 --> 00:03:27,960
Speaker 1: A copy could be exactly the same as the original,

63
00:03:28,040 --> 00:03:31,840
Speaker 1: It could be the exact same code. But if you

64
00:03:31,840 --> 00:03:34,120
Speaker 1: don't have the spot on the blockchain, does that make

65
00:03:34,160 --> 00:03:37,840
Speaker 1: it less valuable? I believe it does. I believe it does,

66
00:03:37,920 --> 00:03:40,720
Speaker 1: and I believe that you know, the platform or artist

67
00:03:40,840 --> 00:03:43,480
Speaker 1: providence matter. So where are you acquiring this from. You're

68
00:03:43,520 --> 00:03:46,080
Speaker 1: starting to see artists step forward with their own contracts,

69
00:03:46,120 --> 00:03:49,560
Speaker 1: You're smart contracts, that is, you're starting to see, you know, platforms,

70
00:03:49,680 --> 00:03:52,280
Speaker 1: established brands step forward as a trust in place to

71
00:03:52,480 --> 00:03:55,280
Speaker 1: transact and both of those sources will help with that

72
00:03:55,440 --> 00:03:59,400
Speaker 1: verification process. And in honestly, you know that verification process

73
00:03:59,600 --> 00:04:01,200
Speaker 1: is easy year with an n f T than it

74
00:04:01,280 --> 00:04:03,440
Speaker 1: is a physical painting. I think there are still issues

75
00:04:03,480 --> 00:04:06,560
Speaker 1: around the the uh you know, whether the Mona Lisa right,

76
00:04:06,680 --> 00:04:09,960
Speaker 1: whether it's really the Mona Lisa or not. So Roger

77
00:04:10,040 --> 00:04:14,000
Speaker 1: around these halls here Bloomber, we talk a lot about investments,

78
00:04:14,040 --> 00:04:17,920
Speaker 1: and I guess the question is do you consider n

79
00:04:18,040 --> 00:04:21,840
Speaker 1: f t s to be a true slash real investment

80
00:04:21,920 --> 00:04:25,200
Speaker 1: or is this maybe a fleeting sign of a very

81
00:04:25,200 --> 00:04:29,599
Speaker 1: expensive and frothy market. There are many There are many

82
00:04:29,640 --> 00:04:31,800
Speaker 1: aspects of n f t s that are just frouthy

83
00:04:31,880 --> 00:04:34,000
Speaker 1: market will pass, you know, like ships sailing in the

84
00:04:34,080 --> 00:04:36,480
Speaker 1: night will never hear from them again. However, here the

85
00:04:36,520 --> 00:04:38,840
Speaker 1: tried and true value propositions of n f T s

86
00:04:38,880 --> 00:04:43,200
Speaker 1: to break it down as art, utility and access art

87
00:04:43,279 --> 00:04:45,880
Speaker 1: global art market over fifty billion dollars. That has been

88
00:04:45,920 --> 00:04:48,440
Speaker 1: a thing for a long long time. Digital art is

89
00:04:48,480 --> 00:04:51,840
Speaker 1: the most recent art form against several decades old. There's

90
00:04:51,960 --> 00:04:55,400
Speaker 1: real value. Their auction houses like Christie's and Southeby's starting

91
00:04:55,440 --> 00:04:57,760
Speaker 1: to step up to the plate and see that Christie's

92
00:04:57,800 --> 00:05:01,800
Speaker 1: recently proof of sovereignty auctions tell the bees recently natively

93
00:05:01,920 --> 00:05:05,200
Speaker 1: digital auctions. They are leaning into this. They understand there's

94
00:05:05,240 --> 00:05:08,360
Speaker 1: value and digital art then utility. Now n ft s

95
00:05:08,440 --> 00:05:11,400
Speaker 1: can do more than just art. Art lad the way.

96
00:05:11,480 --> 00:05:15,360
Speaker 1: Digital artists lead the way. But we're talking about games,

97
00:05:15,400 --> 00:05:17,680
Speaker 1: we're talking about our tickets will be n f t s.

98
00:05:17,720 --> 00:05:20,680
Speaker 1: We're talking about our jerseys and future metaverses will be

99
00:05:20,760 --> 00:05:22,760
Speaker 1: n fp They're gonna be around for a long time.

100
00:05:22,839 --> 00:05:25,520
Speaker 1: The question there, with utility in mind, what can your

101
00:05:25,600 --> 00:05:28,760
Speaker 1: n f T do? And then lastly access You see

102
00:05:28,800 --> 00:05:32,560
Speaker 1: these fabulous cases of artists, creatives and beyond opening the

103
00:05:32,640 --> 00:05:34,719
Speaker 1: doors with their n f T s. For example, another

104
00:05:34,800 --> 00:05:37,279
Speaker 1: artist is part of our project, Robbie Trivino on his

105
00:05:37,360 --> 00:05:41,080
Speaker 1: own he's UH Magic the Gathering Tool music. He did

106
00:05:41,120 --> 00:05:43,840
Speaker 1: some covers for them. He's built a social profile to

107
00:05:43,920 --> 00:05:46,480
Speaker 1: several hundred thousand people, and he was able to sell

108
00:05:46,520 --> 00:05:49,320
Speaker 1: a key. It's an access key. It's an art piece,

109
00:05:49,360 --> 00:05:52,360
Speaker 1: but also a key to future prints of his future,

110
00:05:52,360 --> 00:05:54,479
Speaker 1: access points of his future meet and griefs of his

111
00:05:54,560 --> 00:05:57,760
Speaker 1: future gatherings of his And I believe he he grossed

112
00:05:57,760 --> 00:06:02,080
Speaker 1: over a hundred thousand dollars yesterday. Tool uses that guy's

113
00:06:02,160 --> 00:06:06,480
Speaker 1: art a lot. Yeah, And and I love um tool

114
00:06:06,920 --> 00:06:10,360
Speaker 1: so much, and I love the artwork as well, But

115
00:06:10,560 --> 00:06:12,920
Speaker 1: I just to me, I don't get the value, like

116
00:06:13,120 --> 00:06:15,320
Speaker 1: is it do you use it as a screen saver then?

117
00:06:15,520 --> 00:06:19,400
Speaker 1: Or is it like on your iPhone? Um, it seems

118
00:06:19,480 --> 00:06:23,560
Speaker 1: different from having what we consider to be the actual

119
00:06:23,640 --> 00:06:27,279
Speaker 1: mona Lisa, you know what's interesting? You touch on that.

120
00:06:27,560 --> 00:06:29,920
Speaker 1: And I make this point a lot. And I think

121
00:06:29,960 --> 00:06:34,040
Speaker 1: as this market develops, we're gonna see two things spearhead

122
00:06:34,360 --> 00:06:37,080
Speaker 1: this notion of how do you display digital art, which

123
00:06:37,080 --> 00:06:40,279
Speaker 1: will help with that value connection. We're gonna see better

124
00:06:40,360 --> 00:06:43,839
Speaker 1: frames flat out better frames, frames that you can put

125
00:06:43,880 --> 00:06:46,200
Speaker 1: on your wall in your home that will blow any

126
00:06:46,200 --> 00:06:49,440
Speaker 1: physical frame away. They will be thin, they will be sleek,

127
00:06:49,480 --> 00:06:51,359
Speaker 1: they'll be able to look traditional if you want, to

128
00:06:51,440 --> 00:06:53,360
Speaker 1: be able to build into the wall if you want,

129
00:06:53,400 --> 00:06:55,360
Speaker 1: and they are going to blow your mind. The art

130
00:06:55,400 --> 00:06:57,479
Speaker 1: will be able to move, it will change based on

131
00:06:57,600 --> 00:07:00,800
Speaker 1: time of day, It will be programmed to do different things.

132
00:07:01,160 --> 00:07:03,520
Speaker 1: N f T s are really going to shine when

133
00:07:03,560 --> 00:07:06,240
Speaker 1: those frames improve. And then also in digital lands. You know,

134
00:07:06,240 --> 00:07:10,040
Speaker 1: we talk about futuristic movies, right ready Player one, Steven Spielberg.

135
00:07:10,360 --> 00:07:12,720
Speaker 1: You get into that future world in which people spend

136
00:07:12,720 --> 00:07:15,240
Speaker 1: a little bit more time in these digital universes when

137
00:07:15,240 --> 00:07:18,480
Speaker 1: the display used cases improved there, and you can take

138
00:07:18,520 --> 00:07:20,920
Speaker 1: your n f T into those digital worlds where you

139
00:07:20,960 --> 00:07:25,000
Speaker 1: spend a lot of time. That's also going to drive value. Alright,

140
00:07:25,400 --> 00:07:28,040
Speaker 1: very cool to me. The most interesting thing is just

141
00:07:28,080 --> 00:07:30,480
Speaker 1: talking about these concepts and trying to wrap my forty

142
00:07:30,560 --> 00:07:33,040
Speaker 1: seven year old brain around them. I like it. I

143
00:07:33,080 --> 00:07:35,440
Speaker 1: like it. Roger, thanks so much for joining us. Roger Dickerman,

144
00:07:35,480 --> 00:07:39,720
Speaker 1: their founder and CEO of Artifacts, talking to us about

145
00:07:39,840 --> 00:07:43,480
Speaker 1: non fungible tokens. It has you have to admit that

146
00:07:43,560 --> 00:07:50,920
Speaker 1: It's definitely a fascinating topic. This is Bloomberg right now.

147
00:07:50,960 --> 00:07:53,200
Speaker 1: I want to bring in Darren Williams. He's the CEO

148
00:07:53,440 --> 00:07:57,360
Speaker 1: of Southern Bank Corps. Southern Bank Corps is a for profit,

149
00:07:57,680 --> 00:08:01,960
Speaker 1: mission driven community developed develop financial institution. They're based in

150
00:08:02,120 --> 00:08:05,120
Speaker 1: the Mississippi Delta. UH. Darren, thanks so much for joining

151
00:08:05,200 --> 00:08:07,680
Speaker 1: us here. UM. I love to start off with you

152
00:08:07,760 --> 00:08:09,880
Speaker 1: just kind of giving us a thirty thousand foot view

153
00:08:10,040 --> 00:08:13,360
Speaker 1: of Southern Bankcorps. Who are you guys, and just give

154
00:08:13,400 --> 00:08:15,520
Speaker 1: us a sense of the type of business that you

155
00:08:15,560 --> 00:08:19,000
Speaker 1: guys are pursuing. Sure, Paul, first of all, thanks for

156
00:08:19,040 --> 00:08:21,400
Speaker 1: having us on so Southern Bank Corp. We are, as

157
00:08:21,400 --> 00:08:24,280
Speaker 1: you said, a community development financial institution or a c

158
00:08:24,360 --> 00:08:26,960
Speaker 1: d f B I. We're about two billion in assets, Fidget.

159
00:08:27,000 --> 00:08:29,760
Speaker 1: Two locations spread out through the Arkansas makes the Delta

160
00:08:30,160 --> 00:08:32,079
Speaker 1: UH and one of the most persistently poor community of

161
00:08:32,120 --> 00:08:36,319
Speaker 1: the United States. Our our our communities are largely rules

162
00:08:36,360 --> 00:08:39,600
Speaker 1: and financial, African American and low wealth communities. We are

163
00:08:39,640 --> 00:08:44,080
Speaker 1: in place where many banks have fled with bank consolidation. UM.

164
00:08:44,360 --> 00:08:46,840
Speaker 1: Happened across the country for you know, you know, two

165
00:08:46,920 --> 00:08:49,880
Speaker 1: dozen years now. The number of banks and rule and

166
00:08:50,040 --> 00:08:52,480
Speaker 1: underserving low wealth communities continues to shrink, and we know

167
00:08:52,760 --> 00:08:55,000
Speaker 1: when those communities don't have access to account of credit

168
00:08:55,160 --> 00:08:57,679
Speaker 1: and traditional financial products and services, then they are often

169
00:08:58,160 --> 00:09:02,199
Speaker 1: um inundated with predator are types of alternative financial services.

170
00:09:02,200 --> 00:09:06,360
Speaker 1: So we've served those communities where others have chosen to play.

171
00:09:07,080 --> 00:09:11,120
Speaker 1: So last week Square announced the allocation of million dollars

172
00:09:11,120 --> 00:09:14,200
Speaker 1: as part of this hundred million dollar investment. You're making

173
00:09:14,200 --> 00:09:17,480
Speaker 1: a minority and underserved communities. How are you doing that?

174
00:09:17,559 --> 00:09:20,920
Speaker 1: How are you getting them help? Well? We well, first

175
00:09:20,920 --> 00:09:24,480
Speaker 1: of all, let me say we're extremely um pleased and

176
00:09:24,559 --> 00:09:27,720
Speaker 1: excited to have Square as a shareholder. Square, of course

177
00:09:27,880 --> 00:09:31,840
Speaker 1: is a has a superior payments platform. They are a

178
00:09:31,920 --> 00:09:34,560
Speaker 1: final sal technology company, one of the best around, and

179
00:09:34,559 --> 00:09:36,439
Speaker 1: so they have their endorsements. To have their support in

180
00:09:36,440 --> 00:09:40,120
Speaker 1: their partnership means a great deal. They invested common equity

181
00:09:40,160 --> 00:09:43,360
Speaker 1: mopen million dollar common equity investment in Southern which will

182
00:09:43,400 --> 00:09:46,360
Speaker 1: allow us to grow and expand, to go deeper UH

183
00:09:46,400 --> 00:09:48,840
Speaker 1: and to go further in the market we serve, and

184
00:09:48,840 --> 00:09:51,800
Speaker 1: and to expand traditional places and UH. In fact, one

185
00:09:51,800 --> 00:09:54,000
Speaker 1: of the things that we're very focused on is increasing

186
00:09:54,240 --> 00:09:58,760
Speaker 1: and expanding our financial technology ourselves. So we u over

187
00:09:58,800 --> 00:10:01,120
Speaker 1: the last four years of develop a cloud based corp

188
00:10:01,200 --> 00:10:03,720
Speaker 1: process of which is the back off the bank UM

189
00:10:03,960 --> 00:10:07,199
Speaker 1: and on that platform we build digital verticals or the

190
00:10:07,320 --> 00:10:10,520
Speaker 1: fintech apps. So to have one of the world's leading

191
00:10:10,559 --> 00:10:13,960
Speaker 1: fintech companies UH partner with us, we are excited about

192
00:10:13,960 --> 00:10:16,320
Speaker 1: what we might learn from them. UH. So their investments

193
00:10:16,360 --> 00:10:18,320
Speaker 1: are going to really help us to go deeper and

194
00:10:18,440 --> 00:10:21,480
Speaker 1: further in helping to serve those who often left out

195
00:10:21,520 --> 00:10:24,920
Speaker 1: and left behind, forgotten about by the financial services space. Darren,

196
00:10:25,000 --> 00:10:27,840
Speaker 1: you know when Matt and I speak to UM CEO

197
00:10:27,960 --> 00:10:29,640
Speaker 1: is like yourself. You'll always like to get a sense

198
00:10:29,679 --> 00:10:32,920
Speaker 1: of how the pandemic has impacted their business, their market.

199
00:10:33,320 --> 00:10:34,959
Speaker 1: Love to get a sense. We know that some of

200
00:10:35,000 --> 00:10:39,320
Speaker 1: the underserved communities around this country were uh disproportionately impacted

201
00:10:39,320 --> 00:10:42,720
Speaker 1: by the pandemic, by the economic disruption. Tell us about

202
00:10:42,760 --> 00:10:46,839
Speaker 1: your markets and your business and your customers. So, Paul,

203
00:10:47,200 --> 00:10:49,240
Speaker 1: you know, one thing that that you have to think

204
00:10:49,280 --> 00:10:52,440
Speaker 1: about is even prior to the pandemic, the Delta region

205
00:10:52,480 --> 00:10:55,319
Speaker 1: is one of the most persistent poor community United States.

206
00:10:55,080 --> 00:10:58,160
Speaker 1: It suffered from a number of ill effects of just

207
00:10:58,800 --> 00:11:02,360
Speaker 1: uh you know, just poverty, lack of educational opportunities like

208
00:11:02,440 --> 00:11:04,560
Speaker 1: economic opportunities, and so that's why we do the work

209
00:11:04,600 --> 00:11:06,600
Speaker 1: that we do. That's why our work really focused on

210
00:11:06,640 --> 00:11:08,959
Speaker 1: things that are proven to build wealth and move people

211
00:11:09,000 --> 00:11:12,520
Speaker 1: from financial UH insecurity, financial security, and so the markets

212
00:11:12,520 --> 00:11:14,840
Speaker 1: that we served that were suffering prior to the pandemics,

213
00:11:14,880 --> 00:11:18,040
Speaker 1: but like um many markets, the pandemic had had a

214
00:11:18,120 --> 00:11:22,119
Speaker 1: had a huge impact on on retail, on on our hotels,

215
00:11:22,640 --> 00:11:26,160
Speaker 1: on our restaurant customers. We were able to provide the

216
00:11:26,160 --> 00:11:31,320
Speaker 1: paycheck Protection Dollar program UH to almost twenty three hundred

217
00:11:31,360 --> 00:11:33,880
Speaker 1: businesses in our markets, about a hundred and fifty million

218
00:11:33,920 --> 00:11:36,360
Speaker 1: dollars and paycheck protection dollars that we provided, and many

219
00:11:36,360 --> 00:11:38,000
Speaker 1: of them, many of the customers that we talked, we

220
00:11:38,000 --> 00:11:41,280
Speaker 1: actually we actually did a survey and some fifty percent

221
00:11:41,360 --> 00:11:43,679
Speaker 1: of them said they had no other alternative UH and

222
00:11:43,679 --> 00:11:47,360
Speaker 1: would have probably closed down but for those paycheck protection dollars.

223
00:11:47,360 --> 00:11:50,320
Speaker 1: And so really we're proud to provide that SBA program

224
00:11:50,600 --> 00:11:54,480
Speaker 1: that support to them and they are slowly recovering UH

225
00:11:54,520 --> 00:11:56,360
Speaker 1: and it's it's it's hitting that some are doing better

226
00:11:56,400 --> 00:11:59,560
Speaker 1: than others, but they without that, the devastation would have

227
00:11:59,559 --> 00:12:04,360
Speaker 1: been much worse. You, um you were spearheading that ten

228
00:12:04,400 --> 00:12:07,840
Speaker 1: billion dollar push, and you also were working with Jamie

229
00:12:07,880 --> 00:12:11,200
Speaker 1: Diamond at JP Morgan David Solomon at Goldman Sachs on

230
00:12:11,400 --> 00:12:15,959
Speaker 1: President Trump's Great American Economic Revival initiative. How do you

231
00:12:16,600 --> 00:12:20,600
Speaker 1: see that we're continuing with this new administration, Well, I

232
00:12:20,600 --> 00:12:23,360
Speaker 1: can I can tell you that the first meeting, the

233
00:12:23,440 --> 00:12:26,040
Speaker 1: kind of the financial services team we had with President Trump.

234
00:12:26,360 --> 00:12:32,040
Speaker 1: Really proud that David Solomon, Brian Wannahan, UMU and others

235
00:12:32,440 --> 00:12:36,880
Speaker 1: really encouraged administration to um support and invest and make

236
00:12:36,960 --> 00:12:38,800
Speaker 1: it and and and and support the efforts. Had a

237
00:12:38,800 --> 00:12:41,559
Speaker 1: car about to make sure those paycheck protection dollars went

238
00:12:41,600 --> 00:12:44,640
Speaker 1: to minority depositor institutions and to see the bias because

239
00:12:44,679 --> 00:12:46,840
Speaker 1: we serve those who are often left out and left

240
00:12:46,840 --> 00:12:49,880
Speaker 1: behind and don't have access to larger banks. And so

241
00:12:50,000 --> 00:12:52,280
Speaker 1: really proud to have that partnership. And now that Wall

242
00:12:52,280 --> 00:12:56,080
Speaker 1: Street partnership UH is taking taken additional form. So Brian

243
00:12:56,080 --> 00:12:59,160
Speaker 1: mornahand in Bank America also made a multimillion dollar investment

244
00:12:59,240 --> 00:13:01,400
Speaker 1: of them just just some time they go. And so

245
00:13:01,640 --> 00:13:05,560
Speaker 1: really please at these partnerships with cit if I, NBIS

246
00:13:05,720 --> 00:13:09,520
Speaker 1: and and and Corporate America continues to flourish. Also proud

247
00:13:09,520 --> 00:13:11,720
Speaker 1: of the philanthrophic community, which has been a long time

248
00:13:11,880 --> 00:13:16,080
Speaker 1: support of mission focused banks are even redoubling their efforts.

249
00:13:16,160 --> 00:13:19,080
Speaker 1: And now the government you asked really about theerka's response.

250
00:13:19,480 --> 00:13:22,920
Speaker 1: So for the CD five space, there's some twelve billion

251
00:13:23,000 --> 00:13:26,120
Speaker 1: dollars that's coming to the C five space through the

252
00:13:26,160 --> 00:13:30,319
Speaker 1: government support. And in fact, today Vice President Harris is

253
00:13:30,360 --> 00:13:32,440
Speaker 1: going to make an announcement UH and she's gonna be

254
00:13:32,440 --> 00:13:36,000
Speaker 1: introduced by Lisa mensa Opportunity Financial Network, one of our

255
00:13:36,120 --> 00:13:39,280
Speaker 1: leading trade associations for cd if by loan funds UH

256
00:13:39,280 --> 00:13:42,199
Speaker 1: and they're going to talk about the this administrative support

257
00:13:42,480 --> 00:13:44,280
Speaker 1: of this industry and so really proud to have that

258
00:13:44,320 --> 00:13:47,080
Speaker 1: attention focused on right now. All right, Darren, thanks so

259
00:13:47,160 --> 00:13:49,040
Speaker 1: much for joining us. Darren was one of the Bloomberg

260
00:13:49,480 --> 00:13:53,240
Speaker 1: fifty and he continue to lead the push to help

261
00:13:53,360 --> 00:13:56,280
Speaker 1: those UH. Support those probably is a better way to

262
00:13:56,280 --> 00:13:58,960
Speaker 1: say it, that are under banked in the Mississippi Delta

263
00:13:59,000 --> 00:14:03,360
Speaker 1: area and throughout the u US. Let's bring in Ben

264
00:14:03,400 --> 00:14:06,959
Speaker 1: Emmons UH. He is a Managing director at Global Macro Strategy,

265
00:14:07,440 --> 00:14:10,800
Speaker 1: UM of Global macro Strategy at Medley Global Advisor has

266
00:14:10,800 --> 00:14:14,920
Speaker 1: been up been getting your notes and absolutely loving your research.

267
00:14:15,720 --> 00:14:17,880
Speaker 1: Let me get your take first on the inflation debate,

268
00:14:17,920 --> 00:14:21,560
Speaker 1: because this is obviously the focus of markets. On the

269
00:14:21,600 --> 00:14:26,360
Speaker 1: one hand, you've got fiscal stimulus of five trillion and

270
00:14:26,440 --> 00:14:30,120
Speaker 1: more coming, um, monetary easing of an extra well four

271
00:14:30,160 --> 00:14:33,680
Speaker 1: trillion on the balance sheet, and then some um pent

272
00:14:33,800 --> 00:14:38,640
Speaker 1: up demand by consumers with fient savings rates, um companies

273
00:14:38,680 --> 00:14:43,200
Speaker 1: that are investing capex and UH and spending money like

274
00:14:43,280 --> 00:14:47,440
Speaker 1: they haven't in many, many years. And what's holding us

275
00:14:47,440 --> 00:14:51,280
Speaker 1: back then from from real inflation that's gonna stick around

276
00:14:51,280 --> 00:14:56,280
Speaker 1: for a while. Man, thanks having us again. Um, yeah,

277
00:14:56,400 --> 00:14:59,520
Speaker 1: that's it's actually an interesting question. Maps to the extent

278
00:14:59,600 --> 00:15:03,200
Speaker 1: of that, how do you define transitory as we talk

279
00:15:03,280 --> 00:15:05,360
Speaker 1: about it? Right? Like, you know, if you look at

280
00:15:05,360 --> 00:15:08,280
Speaker 1: the PPI data today, you drill in that you see

281
00:15:08,280 --> 00:15:11,760
Speaker 1: the autose and sector example that was off the charts,

282
00:15:11,800 --> 00:15:14,000
Speaker 1: it's like twenty seven or thirty eight percent year and

283
00:15:14,000 --> 00:15:17,440
Speaker 1: your change in producer prices on those and that that

284
00:15:17,560 --> 00:15:20,280
Speaker 1: sounds a lot like a peak inflation, right, That's very extreme.

285
00:15:20,720 --> 00:15:22,440
Speaker 1: I think that's what markets are looking at. If you

286
00:15:22,440 --> 00:15:25,359
Speaker 1: get these kinds of jumps in these sort of categories

287
00:15:25,760 --> 00:15:29,720
Speaker 1: becomes almost untenable while you cannot really sustain that price level,

288
00:15:30,160 --> 00:15:32,880
Speaker 1: whereas the art factors that you mentioned, of all the

289
00:15:32,920 --> 00:15:35,360
Speaker 1: spent of demand and savings and cap acts, that's all

290
00:15:35,400 --> 00:15:38,600
Speaker 1: working itself through the economy could sustain at least a

291
00:15:38,680 --> 00:15:41,640
Speaker 1: higher level of inflation that we've had pre pandemic, when

292
00:15:41,640 --> 00:15:44,520
Speaker 1: we were really in a low inflation environment. So I

293
00:15:44,520 --> 00:15:47,200
Speaker 1: think if you square too, I think we have a

294
00:15:47,240 --> 00:15:51,680
Speaker 1: transitory narrative about, yes, you have excessive price increases in

295
00:15:51,760 --> 00:15:54,440
Speaker 1: some categories, that this happened to be a major demand

296
00:15:54,480 --> 00:15:58,120
Speaker 1: because as we unmine this pandemic slowly, at the same time,

297
00:15:58,120 --> 00:16:01,440
Speaker 1: there's an underlying current that is clearly pointing to that

298
00:16:01,520 --> 00:16:04,880
Speaker 1: at least the growth of the economy stays stronger, and

299
00:16:04,960 --> 00:16:07,360
Speaker 1: that should lead us at least closer to that long

300
00:16:07,440 --> 00:16:11,040
Speaker 1: term average of what the Fed wants. Two. Looking at

301
00:16:11,040 --> 00:16:13,880
Speaker 1: the high yield, they're not very high, Ben, I mean,

302
00:16:13,960 --> 00:16:17,760
Speaker 1: it's just extraordinary what's happened in that market. Just give

303
00:16:17,840 --> 00:16:19,880
Speaker 1: us a sense of what your call is there, what

304
00:16:19,960 --> 00:16:22,840
Speaker 1: your what, what what your take is. Yeah, I find

305
00:16:22,880 --> 00:16:25,360
Speaker 1: an interesting cold, Paul, because you know, if you look

306
00:16:25,400 --> 00:16:28,400
Speaker 1: at how yield has done really well, you know, if

307
00:16:28,400 --> 00:16:30,240
Speaker 1: you want to invest in fixed income, that's what that's

308
00:16:30,280 --> 00:16:32,680
Speaker 1: the place to be this year. Right, And and if

309
00:16:32,680 --> 00:16:35,160
Speaker 1: you drill in there too, what's really driving it again,

310
00:16:35,280 --> 00:16:38,320
Speaker 1: it's energy, materials and autos, right, those are the sectors

311
00:16:38,320 --> 00:16:41,360
Speaker 1: have done exceptionally well. So there's a lot about I think,

312
00:16:41,520 --> 00:16:45,000
Speaker 1: you know, global demands reopening. That is, you know, have

313
00:16:45,160 --> 00:16:47,840
Speaker 1: investors in the in particularly those bonds, and I guess

314
00:16:48,360 --> 00:16:51,840
Speaker 1: if you add in the cruise lines and the leash hospitality,

315
00:16:52,360 --> 00:16:54,840
Speaker 1: they've been issuing bonds during the pandemic, and they they've

316
00:16:54,880 --> 00:16:58,040
Speaker 1: been scooped up, right, So I yield is strong really

317
00:16:58,040 --> 00:17:00,320
Speaker 1: because the economy is strong. It is there's very little

318
00:17:00,440 --> 00:17:03,120
Speaker 1: the fault risk at this moment. But we also have

319
00:17:03,200 --> 00:17:05,920
Speaker 1: to take note of the fundamental factors. You know, one

320
00:17:06,119 --> 00:17:08,840
Speaker 1: key factor I think that is driving inflation is his

321
00:17:09,000 --> 00:17:11,639
Speaker 1: used car component in CPI and in p p I

322
00:17:12,359 --> 00:17:14,639
Speaker 1: that's not going to sustain that way. So I do

323
00:17:14,760 --> 00:17:17,720
Speaker 1: think that that high yield, if it is traditionally seen

324
00:17:17,760 --> 00:17:21,560
Speaker 1: in autos and related type of sectors. You know what

325
00:17:21,680 --> 00:17:24,239
Speaker 1: we had back in two We've got to get an

326
00:17:24,280 --> 00:17:27,240
Speaker 1: oil price change right at drove the energy sector high

327
00:17:27,280 --> 00:17:30,760
Speaker 1: yield much wider somewhat could happened in this case too,

328
00:17:30,840 --> 00:17:33,159
Speaker 1: once these auto prices start to correct. If you have

329
00:17:33,280 --> 00:17:36,840
Speaker 1: this really like the situation where auto prices are just

330
00:17:36,920 --> 00:17:39,879
Speaker 1: too high and demanded supply works itself out right, I

331
00:17:39,920 --> 00:17:42,360
Speaker 1: think that's where maybe somewhat of a of a down

332
00:17:42,400 --> 00:17:44,399
Speaker 1: draft could happen in high yield. What it means for

333
00:17:44,480 --> 00:17:47,040
Speaker 1: broader markets will see why it It tends to be

334
00:17:47,119 --> 00:17:49,879
Speaker 1: pretty slow bleed initially, but it is to be watched

335
00:17:49,880 --> 00:17:52,640
Speaker 1: because it's definitely a levels that is yeah, I would say,

336
00:17:52,840 --> 00:17:55,680
Speaker 1: brings us back to the two thousand seven complacency levels.

337
00:17:57,800 --> 00:18:00,919
Speaker 1: What what do you think about the meme stocks that

338
00:18:00,960 --> 00:18:02,680
Speaker 1: we're seeing. I spend a little time on Wall Street

339
00:18:02,680 --> 00:18:05,400
Speaker 1: bets today and it just blew my mind. And it's

340
00:18:05,400 --> 00:18:08,240
Speaker 1: not my first time there, right, it's but every time

341
00:18:08,240 --> 00:18:11,639
Speaker 1: I go there, I'm like, holy cow. Um, there's some

342
00:18:11,720 --> 00:18:14,760
Speaker 1: big dogs here and and they're doing some crazy stuff,

343
00:18:15,119 --> 00:18:17,440
Speaker 1: but they've managed to push like game Stop into the

344
00:18:17,520 --> 00:18:20,760
Speaker 1: Russell one thousand. Now. Um, a lot of the stocks

345
00:18:20,840 --> 00:18:24,200
Speaker 1: that they're a lot of these meme stocks are big palatiners,

346
00:18:24,200 --> 00:18:28,800
Speaker 1: a forty six billion dollar company, you know. Um, what's

347
00:18:28,800 --> 00:18:30,840
Speaker 1: your take on on what's going on? And do you

348
00:18:30,840 --> 00:18:34,280
Speaker 1: spend a lot of time now on Reddit. I don't

349
00:18:34,320 --> 00:18:36,679
Speaker 1: spend much stim on Reddit, and that's but there's an

350
00:18:36,720 --> 00:18:39,600
Speaker 1: interesting platform to keep keep an eye on that there

351
00:18:39,640 --> 00:18:41,720
Speaker 1: is in there's a lot of sentiments and hype there

352
00:18:41,760 --> 00:18:45,000
Speaker 1: about these stocks and seems to be communicated there quite

353
00:18:45,000 --> 00:18:47,720
Speaker 1: a bit. But if you really look at that sector

354
00:18:47,840 --> 00:18:50,280
Speaker 1: and just again look at the fundamental way, but I

355
00:18:50,320 --> 00:18:52,840
Speaker 1: find really interesting exactly what you're telling. You have the

356
00:18:52,880 --> 00:18:56,000
Speaker 1: market capitalization of some of these companies ballooning at the moment,

357
00:18:56,080 --> 00:18:59,720
Speaker 1: and it's all driven by equity value increasing. And there's

358
00:18:59,760 --> 00:19:02,239
Speaker 1: some companies Game Stuff is one of them a MC

359
00:19:02,440 --> 00:19:04,800
Speaker 1: two and I believe it's good or actually go go

360
00:19:04,960 --> 00:19:07,439
Speaker 1: one of those others two. They actually pretty levered, right,

361
00:19:07,440 --> 00:19:09,800
Speaker 1: they have a lot of short term that And what's

362
00:19:09,800 --> 00:19:12,720
Speaker 1: now occurring is like if you're seen with SMP last

363
00:19:12,760 --> 00:19:16,440
Speaker 1: week upgrading AMC's rating to triple C plus but still

364
00:19:16,720 --> 00:19:20,000
Speaker 1: the stars rating, but it's upgrading. That's exactly the effect

365
00:19:20,040 --> 00:19:22,679
Speaker 1: from this this hype around that stock to start prices

366
00:19:22,680 --> 00:19:25,040
Speaker 1: off a lot, keeps going up. The equity value that

367
00:19:25,119 --> 00:19:28,160
Speaker 1: these to improve, the market capitalization increases, and that brings

368
00:19:28,200 --> 00:19:30,719
Speaker 1: the leverage of that bounce sheet by itself down and

369
00:19:30,760 --> 00:19:34,600
Speaker 1: I think this is what draws in the fundamental investors whom,

370
00:19:34,640 --> 00:19:37,240
Speaker 1: as you mentioned now have to take it more seriously

371
00:19:37,280 --> 00:19:39,920
Speaker 1: because those stocks have a bigger weight and say you

372
00:19:40,000 --> 00:19:43,560
Speaker 1: russell one thousand index, right, so fund managers have to

373
00:19:43,600 --> 00:19:46,159
Speaker 1: pay attention to these stocks, whether they like it or not.

374
00:19:46,800 --> 00:19:48,399
Speaker 1: So I think if you if you look at that

375
00:19:48,440 --> 00:19:50,879
Speaker 1: whole space, you want to particularly look at the companies

376
00:19:50,920 --> 00:19:53,199
Speaker 1: that are that have actually short termed death and as

377
00:19:53,240 --> 00:19:55,560
Speaker 1: a result can be able to deliver that that sort

378
00:19:55,560 --> 00:19:58,520
Speaker 1: of speak good either indeed equity sales and use the

379
00:19:58,560 --> 00:20:00,920
Speaker 1: proceeds to bring down to that and world actually value

380
00:20:00,920 --> 00:20:03,400
Speaker 1: those up and the dead leverage goes in. Hey Ben,

381
00:20:03,440 --> 00:20:05,680
Speaker 1: thanks so much for joining us. As always, always appreciate

382
00:20:05,720 --> 00:20:09,400
Speaker 1: getting your perspective and your views across asset classes. Ben Emmons.

383
00:20:09,520 --> 00:20:12,960
Speaker 1: He's a managing director Global macro Strategy at the firm

384
00:20:13,000 --> 00:20:16,359
Speaker 1: medley A Global Advisors. We love talking to Ben. Again.

385
00:20:16,400 --> 00:20:20,120
Speaker 1: He puts out some fascinating research notes with great regularity,

386
00:20:20,160 --> 00:20:22,520
Speaker 1: I might add, and there's always a good read giving

387
00:20:22,520 --> 00:20:29,879
Speaker 1: you some good thoughts for these markets. This is Bloomberg. Well,

388
00:20:29,920 --> 00:20:33,000
Speaker 1: a bunch of economic data came out this morning. Retail

389
00:20:33,040 --> 00:20:35,080
Speaker 1: sales a little bit weaker than expected in the month

390
00:20:35,119 --> 00:20:38,440
Speaker 1: of May, although the April data will was revised higher,

391
00:20:38,440 --> 00:20:40,080
Speaker 1: but the market scenes to be looking at that pp

392
00:20:40,200 --> 00:20:44,040
Speaker 1: I data Producer Price index came in higher than expected,

393
00:20:44,080 --> 00:20:46,879
Speaker 1: so that factors into the inflation discussion. Let's break some

394
00:20:46,880 --> 00:20:49,639
Speaker 1: of these numbers down and preview what we will likely

395
00:20:49,760 --> 00:20:52,840
Speaker 1: here here from FED Chairman j Pal tomorrow. We do

396
00:20:52,920 --> 00:20:57,439
Speaker 1: that with Elena Shulietteva, senior US economists for Bloomberg Economics. Elena,

397
00:20:57,440 --> 00:21:00,640
Speaker 1: thanks so much for joining us. Any takeaways here one

398
00:21:00,640 --> 00:21:02,560
Speaker 1: way or the other out of the economic data that

399
00:21:02,600 --> 00:21:05,280
Speaker 1: we saw this morning that jumped out to you. So

400
00:21:05,680 --> 00:21:09,919
Speaker 1: the retail sales report, yes, at the headline it showed

401
00:21:09,920 --> 00:21:13,200
Speaker 1: a decline, but you need to remember where it's coming from.

402
00:21:13,280 --> 00:21:17,040
Speaker 1: So the previous two months of data were revised higher,

403
00:21:17,520 --> 00:21:21,919
Speaker 1: basically showing even a bigger boost from the stimulus checks

404
00:21:22,280 --> 00:21:26,760
Speaker 1: that consumers received earlier this year. So this is just

405
00:21:26,960 --> 00:21:32,919
Speaker 1: normalizing from significantly elevated levels of retail sales. If you

406
00:21:32,960 --> 00:21:36,040
Speaker 1: look at the retail sales in level terms, there are

407
00:21:36,119 --> 00:21:41,440
Speaker 1: still way above the trend that persisted before the crisis.

408
00:21:41,520 --> 00:21:45,680
Speaker 1: So the data still supports our expectations for a very

409
00:21:45,760 --> 00:21:49,240
Speaker 1: robust reading on consumers spending in the second quarter of

410
00:21:49,240 --> 00:21:53,360
Speaker 1: this year when GDP numbers are released. And one more

411
00:21:53,400 --> 00:21:57,320
Speaker 1: thing to highlight is that the report actually shows ongoing

412
00:21:57,520 --> 00:22:02,680
Speaker 1: rotation uh in terms of conser what preferences consumers are

413
00:22:02,880 --> 00:22:07,800
Speaker 1: dying to get back into, you know, experiences, things like

414
00:22:07,920 --> 00:22:11,200
Speaker 1: dining out, vacationing and things like that. And the report

415
00:22:11,200 --> 00:22:14,680
Speaker 1: actually shows that there is a pickup in the services

416
00:22:14,760 --> 00:22:17,960
Speaker 1: sector of the economy if you look at the restaurants

417
00:22:17,960 --> 00:22:21,639
Speaker 1: sales components of the reports. So that is all a

418
00:22:21,720 --> 00:22:26,199
Speaker 1: pretty good news. Actually, I think I wonder about the

419
00:22:26,280 --> 00:22:31,720
Speaker 1: savings UM thesis Lena every time I read about especially

420
00:22:31,840 --> 00:22:35,160
Speaker 1: UM an inflation hawk. But anyone who's talking about big

421
00:22:35,200 --> 00:22:38,679
Speaker 1: growth coming up says it's going to be powered by savings,

422
00:22:38,760 --> 00:22:41,520
Speaker 1: and I, you know that data I can't see through.

423
00:22:42,000 --> 00:22:44,359
Speaker 1: You know, does that count money I put away in

424
00:22:44,400 --> 00:22:46,680
Speaker 1: my I ra A? Does that count the meme stocks

425
00:22:46,720 --> 00:22:50,639
Speaker 1: I'm buying? How is it measured? And how broad is

426
00:22:50,640 --> 00:22:54,520
Speaker 1: that savings? Does everybody have a ton of savings or

427
00:22:54,560 --> 00:22:56,680
Speaker 1: is it just you know, rich people on the coasts.

428
00:22:57,920 --> 00:23:02,240
Speaker 1: So it's very difficult to assess. But yeah, a lot

429
00:23:02,320 --> 00:23:05,840
Speaker 1: of it is held in um UH in the hands

430
00:23:05,840 --> 00:23:10,600
Speaker 1: of more high income people, so a part of it

431
00:23:10,640 --> 00:23:13,840
Speaker 1: will go into the stock market, I think, but it

432
00:23:13,880 --> 00:23:17,720
Speaker 1: doesn't mean that the rest will just stay in the

433
00:23:17,760 --> 00:23:20,800
Speaker 1: savings and checking accounts. So there are a lot of

434
00:23:20,840 --> 00:23:24,239
Speaker 1: different ways to look at this data. So one is

435
00:23:24,280 --> 00:23:28,520
Speaker 1: just simply to look at at how savings and checking

436
00:23:28,560 --> 00:23:33,439
Speaker 1: accounts UH compared to prependemic trends, and there's a huge

437
00:23:33,680 --> 00:23:37,800
Speaker 1: discrepancy there, so there's a lot more money held in

438
00:23:37,920 --> 00:23:41,800
Speaker 1: checking and savings accounts. You can also look at saving

439
00:23:41,880 --> 00:23:46,359
Speaker 1: strength UH based on personal income and spending data, which

440
00:23:46,440 --> 00:23:48,879
Speaker 1: usually is released at the end of the months each month,

441
00:23:49,160 --> 00:23:53,760
Speaker 1: so that shows two point three trillion extra savings in

442
00:23:53,800 --> 00:23:57,399
Speaker 1: the hands of the US consumer. While not all of

443
00:23:57,440 --> 00:24:00,840
Speaker 1: it will be spent consumer servings to just that about

444
00:24:00,880 --> 00:24:03,879
Speaker 1: a quarter of this money will be spent on goods

445
00:24:03,880 --> 00:24:06,639
Speaker 1: and services, and I think that's going to be an

446
00:24:06,640 --> 00:24:10,560
Speaker 1: important driver, along with other things such as a powerful

447
00:24:10,760 --> 00:24:15,000
Speaker 1: wealth effect that we will see this year. So some

448
00:24:15,200 --> 00:24:19,240
Speaker 1: still know his money basically helped h to boost a

449
00:24:19,680 --> 00:24:22,760
Speaker 1: consumer spending in the beginning of the year, and UH

450
00:24:22,800 --> 00:24:27,000
Speaker 1: those more powerful trends like savings and the wealth effect

451
00:24:27,080 --> 00:24:31,400
Speaker 1: will continue to put consumer spending higher as the year progresses.

452
00:24:31,800 --> 00:24:34,919
Speaker 1: All right, Elena, let's fast forward to tomorrow preview of

453
00:24:34,920 --> 00:24:37,639
Speaker 1: what we may hear? Bet Chairman Pow, what are you

454
00:24:37,640 --> 00:24:42,280
Speaker 1: looking for? So the market will be looking at whether

455
00:24:42,840 --> 00:24:47,200
Speaker 1: Mr Powell flips in terms of UH his message, and

456
00:24:47,320 --> 00:24:49,679
Speaker 1: I don't think it's gonna happen. Can you afford to

457
00:24:49,680 --> 00:24:52,160
Speaker 1: do that without losing his credibility? I mean that would

458
00:24:52,240 --> 00:24:54,800
Speaker 1: really be giving up. He would be a huge loser

459
00:24:54,840 --> 00:24:58,560
Speaker 1: if he did that now, and to use some trump

460
00:24:58,640 --> 00:25:02,240
Speaker 1: like that, but doesn't have any reason to do so.

461
00:25:02,240 --> 00:25:06,320
Speaker 1: So uh. Basically, back in equal he said that the

462
00:25:06,400 --> 00:25:10,040
Speaker 1: recovery is far from complete and the FED will continue

463
00:25:10,080 --> 00:25:14,760
Speaker 1: to provide accommodation until the recovery is complete. So it

464
00:25:14,960 --> 00:25:18,480
Speaker 1: was not complete back then, it's not complete now. If

465
00:25:18,480 --> 00:25:22,720
Speaker 1: you look at the payrolls report, write the latest two

466
00:25:22,760 --> 00:25:26,960
Speaker 1: of them, so that actually reinforces that is message from

467
00:25:27,000 --> 00:25:31,119
Speaker 1: the Fed. So despite an inflation pick up, I think

468
00:25:31,440 --> 00:25:34,520
Speaker 1: the Fed will stick to the same exact message. They

469
00:25:34,560 --> 00:25:38,639
Speaker 1: will upgrade UH their projections for inflation in the tamary

470
00:25:38,760 --> 00:25:44,440
Speaker 1: economic projections, but will quickly discount it as temporary. Our

471
00:25:44,560 --> 00:25:49,879
Speaker 1: favorite words, you know, temporary trendient factor um in the

472
00:25:49,920 --> 00:25:53,080
Speaker 1: press conference. One thing to which will be the dot

473
00:25:53,119 --> 00:25:57,639
Speaker 1: plot and whether the median dot for twenty twenty three

474
00:25:57,840 --> 00:26:01,800
Speaker 1: moves showing a lift of Oh yeah, that is also

475
00:26:02,600 --> 00:26:05,879
Speaker 1: quite far away, and I think we will speak to

476
00:26:05,960 --> 00:26:10,840
Speaker 1: our old book for dots go also on the terminal,

477
00:26:10,960 --> 00:26:14,160
Speaker 1: but of course, uh always great to get your take

478
00:26:14,200 --> 00:26:17,159
Speaker 1: as well. Elena juliet Jeva, thank you so much for

479
00:26:17,240 --> 00:26:20,720
Speaker 1: joining us senior US economists at Bloomberg Economics. Thanks for

480
00:26:20,720 --> 00:26:24,199
Speaker 1: listening to the Bloomberg Markets podcast. You can subscribe and

481
00:26:24,320 --> 00:26:28,360
Speaker 1: listen to interviews of Apple Podcasts or whatever podcast platform

482
00:26:28,440 --> 00:26:31,720
Speaker 1: you prefer. I'm Matt Miller. I'm on Twitter at Matt

483
00:26:31,760 --> 00:26:35,280
Speaker 1: Miller three. Pet On fall Sweeney I'm on Twitter at

484
00:26:35,320 --> 00:26:38,159
Speaker 1: pt Sweeney. Before the podcast, you can always catch us

485
00:26:38,200 --> 00:26:39,600
Speaker 1: worldwide at Bloomberg Radio