1 00:00:02,720 --> 00:00:09,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio, news, and Android auto with 2 00:00:09,119 --> 00:00:12,240 Speaker 1: the Bloomberg Business App. Listen on demand wherever you get 3 00:00:12,240 --> 00:00:15,040 Speaker 1: your podcasts, or watch us live on YouTube. 4 00:00:15,560 --> 00:00:18,400 Speaker 2: Alex Stealier alongside plaus we need. This is Bloomberg Intelligence Radio. 5 00:00:18,440 --> 00:00:19,920 Speaker 2: We got to cover with the top news and business, 6 00:00:20,000 --> 00:00:23,160 Speaker 2: economics and finance through our lens of our Bloomberg Intelligence folks. 7 00:00:23,200 --> 00:00:25,160 Speaker 2: They cover two thousand companies and one hundred and thirty 8 00:00:25,200 --> 00:00:27,479 Speaker 2: industries all around the world. And thank goodness we have 9 00:00:27,560 --> 00:00:30,120 Speaker 2: them because we get a lot of news today, particularly 10 00:00:30,160 --> 00:00:32,519 Speaker 2: out of the drug makers from the White House. So 11 00:00:32,520 --> 00:00:36,519 Speaker 2: shares of pharmaceutical companies largely trading higher today. As President 12 00:00:36,520 --> 00:00:39,640 Speaker 2: Donald Trump's executive order was aimed at cutting US prescription 13 00:00:39,760 --> 00:00:42,680 Speaker 2: drug prices, it was sort of like the less bad news. 14 00:00:42,720 --> 00:00:46,000 Speaker 2: It was better than feared. One area though, will definitely 15 00:00:46,040 --> 00:00:50,520 Speaker 2: be a pharmacy benefit manager. Sam Fazzelli's Boomberg Intelligence director 16 00:00:50,560 --> 00:00:55,040 Speaker 2: of Research for Global Industries and senior pharmaceutical analyst, Sam, 17 00:00:55,440 --> 00:00:58,120 Speaker 2: can you just walk me through why do we hear 18 00:00:58,160 --> 00:01:00,920 Speaker 2: in the US pay more for drug pricing and should 19 00:01:01,000 --> 00:01:01,800 Speaker 2: that be reduced? 20 00:01:03,560 --> 00:01:06,560 Speaker 3: Yeah? So, Alex, the thing in the US is that 21 00:01:06,640 --> 00:01:11,640 Speaker 3: it's a price that's set by negotiation between farmer companies 22 00:01:12,200 --> 00:01:17,640 Speaker 3: and insurers, pharmacy benefit managers and payers. It is not 23 00:01:17,720 --> 00:01:20,200 Speaker 3: dictated by the government, at least it wasn't until recently, 24 00:01:20,720 --> 00:01:23,080 Speaker 3: whereas in Europe and many other countries you have a 25 00:01:23,120 --> 00:01:26,120 Speaker 3: single payer and that's the government and they play hardball 26 00:01:26,560 --> 00:01:30,639 Speaker 3: so they can get lower prices because that's the way 27 00:01:30,480 --> 00:01:33,520 Speaker 3: they operate, and they had. There are many situations where 28 00:01:33,520 --> 00:01:37,200 Speaker 3: in the UK the National Institute for Clinical Accident refuses 29 00:01:37,280 --> 00:01:40,600 Speaker 3: to believe or accept that a drug has got is 30 00:01:40,680 --> 00:01:43,440 Speaker 3: value added, so it's not even offered even at the 31 00:01:43,520 --> 00:01:47,840 Speaker 3: negotiated lower price. So that's the issue here, which means 32 00:01:47,840 --> 00:01:50,400 Speaker 3: that as soon as innovation happens is out in the market. 33 00:01:50,400 --> 00:01:52,600 Speaker 3: In the US, the day that a product is approved, 34 00:01:52,600 --> 00:01:55,080 Speaker 3: they can get on and sell it. Over in Europe 35 00:01:55,120 --> 00:01:56,920 Speaker 3: it could take a year two years for a drug 36 00:01:56,960 --> 00:02:00,480 Speaker 3: to come through, and maybe with this new execut order, 37 00:02:00,840 --> 00:02:03,520 Speaker 3: sometimes the companies will go where I'd rather not launch 38 00:02:03,560 --> 00:02:04,440 Speaker 3: in Europe. 39 00:02:05,040 --> 00:02:09,240 Speaker 4: So is it realistic to expect that drug prices in 40 00:02:09,240 --> 00:02:12,079 Speaker 4: the US will come down? Could come down? 41 00:02:13,680 --> 00:02:16,760 Speaker 3: The thing is, Paul, if I'm having a tough time 42 00:02:16,800 --> 00:02:19,560 Speaker 3: to balance this out. If the intention is for to 43 00:02:19,600 --> 00:02:22,200 Speaker 3: get the rest of the world to pay more, which 44 00:02:22,240 --> 00:02:25,160 Speaker 3: of course helps the farmer companies. Then I don't see 45 00:02:25,200 --> 00:02:29,080 Speaker 3: how that helps the US drug prices come down, right. 46 00:02:30,120 --> 00:02:35,320 Speaker 3: If they aren't able to increase prices in Europe, then 47 00:02:35,400 --> 00:02:38,120 Speaker 3: the government in the US is saying, well, you should 48 00:02:38,120 --> 00:02:42,160 Speaker 3: give us the same prices to giving elsewhere. Then innovation disappears, 49 00:02:42,200 --> 00:02:43,799 Speaker 3: because at the end of the day, if you cut 50 00:02:43,840 --> 00:02:47,760 Speaker 3: your revenue by half, you won't have and you spend 51 00:02:47,800 --> 00:02:50,000 Speaker 3: fifteen percent of that on R and D yes what 52 00:02:50,160 --> 00:02:54,119 Speaker 3: your RN defaults simple maths, So how this plays out 53 00:02:54,160 --> 00:02:56,200 Speaker 3: would be quite interesting to see. And of course we 54 00:02:56,280 --> 00:02:59,080 Speaker 3: have to also remember that there isn't a price in Europe, 55 00:02:59,120 --> 00:03:00,760 Speaker 3: so we just check the price. So we go v 56 00:03:01,040 --> 00:03:03,880 Speaker 3: in the UK at the effective dose two hundred and 57 00:03:03,919 --> 00:03:08,440 Speaker 3: thirty dollars, okay. In the US leader Novo sales it 58 00:03:08,520 --> 00:03:11,800 Speaker 3: for four hundred and ninety nine dollars to the director consumer. Okay, 59 00:03:11,919 --> 00:03:13,119 Speaker 3: it's about twice as much. 60 00:03:13,240 --> 00:03:13,600 Speaker 1: Okay. 61 00:03:14,040 --> 00:03:16,280 Speaker 3: So let's say in Europe it goes up to three 62 00:03:16,360 --> 00:03:19,679 Speaker 3: hundred during the UK, and how does that change with 63 00:03:19,800 --> 00:03:22,880 Speaker 3: the US number? And we don't even know whether the 64 00:03:23,560 --> 00:03:26,200 Speaker 3: company actually gives that price, because then there's a little 65 00:03:26,240 --> 00:03:28,639 Speaker 3: small print. We have been doing a commerce with the 66 00:03:29,040 --> 00:03:31,639 Speaker 3: NHS dot Are commercial deal. So what is the price? 67 00:03:32,040 --> 00:03:34,200 Speaker 3: How is the US government going to find that price 68 00:03:34,560 --> 00:03:37,600 Speaker 3: unless they incorporated into the trade agreements that they're doing, 69 00:03:37,840 --> 00:03:39,600 Speaker 3: which is what should be happening here. 70 00:03:40,880 --> 00:03:44,200 Speaker 2: So going for So what about the PBMs, So that 71 00:03:44,320 --> 00:03:47,000 Speaker 2: was singled out the pharmacy benefit managers as were the 72 00:03:47,000 --> 00:03:50,920 Speaker 2: middleman between insurers and the government and then drug makers, 73 00:03:50,920 --> 00:03:54,800 Speaker 2: et cetera. What role do they really have and are 74 00:03:54,840 --> 00:03:56,160 Speaker 2: they the ones most at risk? 75 00:03:58,160 --> 00:04:00,000 Speaker 3: I would say they are the ones most at risk. 76 00:04:00,040 --> 00:04:02,280 Speaker 3: I would say they should have always been the ones 77 00:04:02,400 --> 00:04:07,120 Speaker 3: most at risk because I don't understand the reason they 78 00:04:07,160 --> 00:04:09,680 Speaker 3: exist in the middle. I mean, that's the I can 79 00:04:09,760 --> 00:04:12,440 Speaker 3: show you a chart of how the US payment system works, 80 00:04:12,520 --> 00:04:15,280 Speaker 3: and it varies by insurance. You can you can go 81 00:04:15,400 --> 00:04:16,960 Speaker 3: from one job to another and the cost of your 82 00:04:17,000 --> 00:04:19,720 Speaker 3: drug goes up, right because you have a different insurance, 83 00:04:19,720 --> 00:04:22,520 Speaker 3: but from one state to another. So it's it's that 84 00:04:22,680 --> 00:04:25,600 Speaker 3: just really isn't is untenable? And it's nice to see 85 00:04:25,600 --> 00:04:29,000 Speaker 3: that the government, the administration is not talking about making 86 00:04:29,040 --> 00:04:31,520 Speaker 3: it easier to sell directly to consumers. So let me 87 00:04:31,560 --> 00:04:34,039 Speaker 3: give you an example. We have data on the terminal 88 00:04:34,400 --> 00:04:37,360 Speaker 3: that gives you an ability to calculate what a drug 89 00:04:37,400 --> 00:04:42,120 Speaker 3: revenue should have been in the past quarter volume times price. Right, 90 00:04:42,760 --> 00:04:45,479 Speaker 3: then you go and see what they actually reported. Sometimes 91 00:04:45,480 --> 00:04:49,599 Speaker 3: for Insulince, for instance, is eighty percent lower eighty percent? 92 00:04:50,040 --> 00:04:52,039 Speaker 3: Now the PBM say, I know, we passed that on 93 00:04:52,120 --> 00:04:55,120 Speaker 3: back to the to medical party. Why do you even 94 00:04:55,160 --> 00:04:57,680 Speaker 3: take it? Why do we need to pay an administrator 95 00:04:57,720 --> 00:04:58,400 Speaker 3: in the middle here? 96 00:04:59,000 --> 00:05:02,400 Speaker 4: That's great, soci What are your companies within your food 97 00:05:02,440 --> 00:05:04,480 Speaker 4: chain there in a big farmer. What are they saying, 98 00:05:05,240 --> 00:05:07,880 Speaker 4: Because this issue is new, We've been plaining about high 99 00:05:07,920 --> 00:05:10,720 Speaker 4: drug prices forever. What are they saying as to what 100 00:05:10,880 --> 00:05:12,200 Speaker 4: is likely to really happen. 101 00:05:13,560 --> 00:05:15,320 Speaker 3: They're not saying very much, Paul, you know, and in 102 00:05:15,360 --> 00:05:17,200 Speaker 3: this center circumstances, the best thing to do is to 103 00:05:17,240 --> 00:05:20,520 Speaker 3: keep your head down and see how things work out. 104 00:05:20,640 --> 00:05:22,920 Speaker 3: And of course today it's only just come out. So 105 00:05:23,240 --> 00:05:26,640 Speaker 3: I think they all to a t say the PBMs 106 00:05:26,640 --> 00:05:28,159 Speaker 3: are a problem, we need to get rid of it. 107 00:05:28,320 --> 00:05:30,640 Speaker 3: That so let's say that, But that's not today, That's 108 00:05:30,680 --> 00:05:34,359 Speaker 3: been going on for ten years. They also say Europe 109 00:05:34,360 --> 00:05:36,839 Speaker 3: should pay more, But they also say that when you 110 00:05:36,920 --> 00:05:39,880 Speaker 3: do the net price calculation in many instances. I actually 111 00:05:39,960 --> 00:05:44,200 Speaker 3: send you a code from Pascalsorio, the Astrisenica CEO, saying 112 00:05:44,240 --> 00:05:46,120 Speaker 3: that actually, in many cases the prices end up being 113 00:05:46,120 --> 00:05:48,760 Speaker 3: about the same, maybe a little bit different. So all 114 00:05:48,800 --> 00:05:50,760 Speaker 3: of that needs to be taken into account, and we 115 00:05:50,839 --> 00:05:53,719 Speaker 3: need to decide if they're going to push Europe higher 116 00:05:54,040 --> 00:05:57,000 Speaker 3: to pay more. Is the US also happy to move 117 00:05:57,040 --> 00:05:58,960 Speaker 3: some of the R and D to Europe? Maybe that's 118 00:05:58,960 --> 00:06:02,080 Speaker 3: something that the governments will ask for. Fine, we'll pay more, 119 00:06:02,160 --> 00:06:03,920 Speaker 3: but bring some of your R and D here, bring 120 00:06:03,960 --> 00:06:06,080 Speaker 3: more manufacturing here, same arguments. 121 00:06:06,640 --> 00:06:10,640 Speaker 2: So twenty seconds, the drugstocks are higher. Does this make 122 00:06:10,680 --> 00:06:11,120 Speaker 2: sense to you? 123 00:06:12,320 --> 00:06:14,320 Speaker 3: Yeah, Well, as you said, you got it right at 124 00:06:14,320 --> 00:06:17,720 Speaker 3: the beginning, Alex that this is not as bad as 125 00:06:17,960 --> 00:06:20,359 Speaker 3: people expected. And also I think we're in a world 126 00:06:20,360 --> 00:06:25,320 Speaker 3: where sometimes the president uses his power to really push 127 00:06:25,400 --> 00:06:28,520 Speaker 3: people into a into action, and then when he gets 128 00:06:28,520 --> 00:06:30,320 Speaker 3: what he wants, the action isn't as bad as sir. 129 00:06:30,400 --> 00:06:33,160 Speaker 2: All right, Sam, thanks a lot, Sam Fazelli, Bloomberg Intelligence. 130 00:06:33,200 --> 00:06:35,840 Speaker 2: We really appreciate you. 131 00:06:35,839 --> 00:06:39,559 Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live 132 00:06:39,640 --> 00:06:42,680 Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android 133 00:06:42,720 --> 00:06:46,039 Speaker 1: auto with the Bloomberg Business App, listen on demand wherever 134 00:06:46,080 --> 00:06:49,200 Speaker 1: you get your podcasts, or watch us live on YouTube. 135 00:06:50,000 --> 00:06:51,640 Speaker 2: All right, let's get some of the logistics here on 136 00:06:51,680 --> 00:06:54,840 Speaker 2: the policy side. Nathan Dean, Bloomberg Intelligence Senior policy analyst, 137 00:06:55,080 --> 00:06:57,480 Speaker 2: joins us. Now, so a couple of things to dissect. Obviously, 138 00:06:57,480 --> 00:07:00,599 Speaker 2: one is the executive order for Big Farman drugp pricing. 139 00:07:00,640 --> 00:07:03,960 Speaker 2: The others, of course US and China slashing tariffs. Here's 140 00:07:04,000 --> 00:07:05,839 Speaker 2: what I don't really understand. If we're going to go 141 00:07:05,839 --> 00:07:08,159 Speaker 2: back to tariffs that were roughly where they were before 142 00:07:08,200 --> 00:07:09,840 Speaker 2: the one hundred and forty five percent and one hundred 143 00:07:09,840 --> 00:07:12,720 Speaker 2: and twenty five percent on the respective countries, why are 144 00:07:12,760 --> 00:07:15,840 Speaker 2: we getting the sort of celebratory tone in the market. 145 00:07:16,440 --> 00:07:18,640 Speaker 5: Well, I think it's just because of the idea of 146 00:07:18,640 --> 00:07:21,000 Speaker 5: this pause. You know that the worst case scenario is 147 00:07:21,040 --> 00:07:23,520 Speaker 5: maybe not the worst case scenario. But you know, I 148 00:07:23,600 --> 00:07:26,120 Speaker 5: go back to what Treasury Secretary Scott Besson said this 149 00:07:26,160 --> 00:07:28,600 Speaker 5: morning in his interview with Jonathan Farrow. You know, and 150 00:07:28,640 --> 00:07:30,440 Speaker 5: I'm paraphrasing here, he said, Look, you know the one 151 00:07:30,480 --> 00:07:33,680 Speaker 5: hundred and forty five percent was because of China's retaliatory nature. 152 00:07:34,080 --> 00:07:36,320 Speaker 5: You know, if you go back to April second and 153 00:07:36,320 --> 00:07:38,520 Speaker 5: look at the liberation day of that thirty four percent. 154 00:07:38,840 --> 00:07:40,440 Speaker 5: It's a little bit more in line today with. 155 00:07:40,400 --> 00:07:41,240 Speaker 4: That thirty percent. 156 00:07:41,360 --> 00:07:43,280 Speaker 5: So I think the market is going to wake up 157 00:07:43,280 --> 00:07:45,760 Speaker 5: in the next day or so and realize that tariffs 158 00:07:45,800 --> 00:07:48,320 Speaker 5: are going to remain elevated. Yes, it's not going to 159 00:07:48,320 --> 00:07:49,920 Speaker 5: be as much as one hundred and forty five percent, 160 00:07:49,960 --> 00:07:51,960 Speaker 5: and that's a good thing. And maybe it opens up 161 00:07:52,000 --> 00:07:53,640 Speaker 5: the boats so that they can start coming into the 162 00:07:53,680 --> 00:07:55,840 Speaker 5: West coast of the United States and we begin to, 163 00:07:55,960 --> 00:07:59,160 Speaker 5: you know, alleviate this idea of you know, shelves being 164 00:07:59,160 --> 00:08:01,880 Speaker 5: empty and so forth. That but elevated tariffs are still 165 00:08:01,920 --> 00:08:03,520 Speaker 5: going to be here, and that's going to be the norm. 166 00:08:03,720 --> 00:08:06,040 Speaker 5: We're really working towards this kiddy scenario where it's like 167 00:08:06,080 --> 00:08:08,720 Speaker 5: a ten percent baseline tariff, maybe a little bit higher 168 00:08:08,720 --> 00:08:13,400 Speaker 5: for other countries like China, with special exemptions, maybe for automobile, automobiles, 169 00:08:13,400 --> 00:08:15,200 Speaker 5: pharmaceutical tech, you name it. 170 00:08:15,720 --> 00:08:18,600 Speaker 4: Hey, Nathan, to what extent died politics player role here, 171 00:08:18,920 --> 00:08:22,080 Speaker 4: folks on the hill, maybe Republicans saying to this White House, hey, 172 00:08:22,360 --> 00:08:24,840 Speaker 4: we got some elections coming up, and if we're talking 173 00:08:24,840 --> 00:08:26,800 Speaker 4: about these super high tariffs that could be a problem 174 00:08:26,840 --> 00:08:27,120 Speaker 4: for US. 175 00:08:27,840 --> 00:08:30,280 Speaker 5: Yeah, I think there was probably more politics here than 176 00:08:30,320 --> 00:08:32,080 Speaker 5: the White House was probably letting on. And I think 177 00:08:32,120 --> 00:08:34,800 Speaker 5: it's not so much the elections, but more so of 178 00:08:34,800 --> 00:08:37,440 Speaker 5: those Fourth of July barbecues, because you know, if you 179 00:08:37,480 --> 00:08:39,440 Speaker 5: think about it, and if you believe the idea that 180 00:08:39,520 --> 00:08:41,400 Speaker 5: you know, these a lot of these ships in the 181 00:08:41,520 --> 00:08:43,439 Speaker 5: coming into the West Coast and the United States are 182 00:08:43,440 --> 00:08:45,920 Speaker 5: down thirty to forty percent. These are these ships that 183 00:08:45,960 --> 00:08:49,440 Speaker 5: are bringing over items for the Christmas retail season. And 184 00:08:49,480 --> 00:08:51,600 Speaker 5: if you begin to see the combination of you know, 185 00:08:51,640 --> 00:08:55,240 Speaker 5: President Trump's comments on well maybe American children don't need 186 00:08:55,280 --> 00:08:57,880 Speaker 5: two dolls or thirty dollars, they get two dolls with 187 00:08:58,000 --> 00:09:00,839 Speaker 5: some empty store shelves, and with the idea that maybe 188 00:09:00,840 --> 00:09:03,000 Speaker 5: that we're going to get to a situation where small 189 00:09:03,040 --> 00:09:06,000 Speaker 5: businesses are really harmed from this. I think this was 190 00:09:06,160 --> 00:09:08,400 Speaker 5: sort of the White House's way of saying, look, you know, 191 00:09:08,440 --> 00:09:10,320 Speaker 5: we need to also try and save some face here. 192 00:09:10,360 --> 00:09:11,560 Speaker 5: You know, I didn't think they were going to go 193 00:09:11,559 --> 00:09:13,760 Speaker 5: down to thirty percent, you know, I think they around 194 00:09:13,840 --> 00:09:15,800 Speaker 5: sixty eighty percent is where you would have asked me 195 00:09:15,840 --> 00:09:17,760 Speaker 5: on Friday. I would have said, but you know they're 196 00:09:17,800 --> 00:09:19,800 Speaker 5: going to thirty percent. It does give the market a 197 00:09:19,800 --> 00:09:22,360 Speaker 5: lot of breathing room. Yes, we have lots of negotiations 198 00:09:22,400 --> 00:09:24,600 Speaker 5: that have to take place over the next ninety days, 199 00:09:24,800 --> 00:09:26,719 Speaker 5: but it's something the market can actually work with in 200 00:09:26,800 --> 00:09:27,920 Speaker 5: terms of clarity purposes. 201 00:09:28,000 --> 00:09:30,200 Speaker 2: I also wonder if there's breathing room now in terms 202 00:09:30,280 --> 00:09:34,000 Speaker 2: of dealing with a tax bill and focusing on deregulation, 203 00:09:34,120 --> 00:09:35,880 Speaker 2: what's the timing of both of those things there? 204 00:09:36,679 --> 00:09:39,360 Speaker 5: Well, So for the tax bill, this tariff announcement actually 205 00:09:39,440 --> 00:09:41,920 Speaker 5: hurts it a little bit from the standpoint that the 206 00:09:41,960 --> 00:09:44,920 Speaker 5: House Republicans were hoping to use two trillion dollars worth 207 00:09:44,960 --> 00:09:47,480 Speaker 5: of teriff revenue to help pay for this bill, which 208 00:09:47,480 --> 00:09:49,880 Speaker 5: is north of five trillion dollars. And you know, if 209 00:09:49,880 --> 00:09:51,320 Speaker 5: you come out and say, look, we're going to go 210 00:09:51,360 --> 00:09:54,160 Speaker 5: back to a ten percent baseline tariff for everybody at least, 211 00:09:54,280 --> 00:09:56,960 Speaker 5: what the situation is turning out to be, you're not 212 00:09:56,960 --> 00:09:59,080 Speaker 5: going to get anywhere close to that two trillion dollars. 213 00:09:59,320 --> 00:10:00,960 Speaker 5: So now the question is how you're going to pay 214 00:10:01,000 --> 00:10:02,720 Speaker 5: for it. Now, there's going to be some markups this 215 00:10:02,760 --> 00:10:05,840 Speaker 5: week House Energy and Commerce, House Ways and Means Committee. 216 00:10:05,920 --> 00:10:08,880 Speaker 5: By this time tomorrow you'll know exactly where the House 217 00:10:09,040 --> 00:10:11,640 Speaker 5: efforts are in terms of gutting things like the IRA 218 00:10:11,920 --> 00:10:15,600 Speaker 5: or changing the tax provisions of this country. But what 219 00:10:15,640 --> 00:10:18,120 Speaker 5: we're telling our clients is just remember the House is 220 00:10:18,160 --> 00:10:20,959 Speaker 5: throwing the kitchen sync in with this bill. They're throwing 221 00:10:20,960 --> 00:10:22,640 Speaker 5: in things that we don't think will even pass the 222 00:10:22,679 --> 00:10:25,840 Speaker 5: Senate parliamentarian and wouldn't even get under the what they 223 00:10:25,840 --> 00:10:27,920 Speaker 5: call the bird Rule, wouldn't even fly through that. So 224 00:10:27,960 --> 00:10:30,360 Speaker 5: look for everything to be thrown in and then things 225 00:10:30,400 --> 00:10:32,680 Speaker 5: to be scaled back. The biggest question though, is how 226 00:10:32,720 --> 00:10:34,280 Speaker 5: you're going to pay for it, And I don't think 227 00:10:34,280 --> 00:10:37,000 Speaker 5: anybody on Capitol Hill, on the Republican side, knows how 228 00:10:37,000 --> 00:10:38,640 Speaker 5: they're going to pay for it at this point. And 229 00:10:38,679 --> 00:10:41,120 Speaker 5: as a result, there is a possibility this may not 230 00:10:41,200 --> 00:10:43,640 Speaker 5: be permanent. They may be pulling it back and saying, 231 00:10:43,679 --> 00:10:45,840 Speaker 5: you know, maybe it's only worth four to six years 232 00:10:45,840 --> 00:10:47,160 Speaker 5: worth of tax extensions. 233 00:10:47,800 --> 00:10:50,440 Speaker 4: What are the dates that we need to pay attention 234 00:10:50,480 --> 00:10:52,880 Speaker 4: to it, because quite frankly, I am not paying attention. 235 00:10:52,960 --> 00:10:54,640 Speaker 4: I am overwhelmed. But you tell me the data I 236 00:10:54,679 --> 00:10:56,439 Speaker 4: need to pay attention here from what we're going to 237 00:10:56,480 --> 00:10:57,360 Speaker 4: hear from Congress. 238 00:10:57,800 --> 00:10:59,400 Speaker 5: So for the next two weeks. They're going to see 239 00:10:59,400 --> 00:11:01,400 Speaker 5: this debate in the so lots of headline risks, but 240 00:11:01,440 --> 00:11:04,199 Speaker 5: again it's just the headline risks. Ultimately, we think a 241 00:11:04,240 --> 00:11:06,440 Speaker 5: House vote will probably come at the end of this month, 242 00:11:06,520 --> 00:11:09,520 Speaker 5: or probably more likely in June. That's when the Senate's 243 00:11:09,520 --> 00:11:11,080 Speaker 5: going to get it. The Senate's going to say thank. 244 00:11:11,000 --> 00:11:11,600 Speaker 4: You very much. 245 00:11:11,679 --> 00:11:13,440 Speaker 5: They're going to essentially throw it out, and then they're 246 00:11:13,440 --> 00:11:14,880 Speaker 5: going to say, look, we will take you and do 247 00:11:14,960 --> 00:11:17,080 Speaker 5: whatever we want and send it back to you. We 248 00:11:17,120 --> 00:11:18,839 Speaker 5: think that's going to happen around the fourth of July 249 00:11:18,960 --> 00:11:21,520 Speaker 5: time frame. This is also under the assumption that the 250 00:11:21,520 --> 00:11:24,280 Speaker 5: debt ceiling remains in this bill, because if the Treasury 251 00:11:24,280 --> 00:11:26,920 Speaker 5: Secretary Scott Besson said the x state for that debt 252 00:11:26,960 --> 00:11:29,680 Speaker 5: ceiling is in August, Congress needs to wrap this up 253 00:11:29,720 --> 00:11:32,640 Speaker 5: before then. So we're thinking ultimate passage in that mid 254 00:11:32,679 --> 00:11:35,520 Speaker 5: to late July timeframe. If the debt ceiling provision is 255 00:11:35,520 --> 00:11:38,160 Speaker 5: script out, if there's nowhere, if they aren't anywhere close to, 256 00:11:38,920 --> 00:11:40,720 Speaker 5: you know, coming to a deal, they'll have to do 257 00:11:40,760 --> 00:11:43,160 Speaker 5: the debt ceiling separately. And then the real deadline for 258 00:11:43,200 --> 00:11:45,400 Speaker 5: this is probably going to be the October November time frame. 259 00:11:46,200 --> 00:11:47,920 Speaker 2: In terms of then the market as we sort of 260 00:11:48,080 --> 00:11:50,160 Speaker 2: look ahead to that, what's going to be the next 261 00:11:50,200 --> 00:11:52,920 Speaker 2: catalyst within the first next week or week and a half. 262 00:11:52,920 --> 00:11:53,560 Speaker 4: What are you looking for? 263 00:11:54,360 --> 00:11:56,520 Speaker 5: So I think it's going to really be the House 264 00:11:56,600 --> 00:11:59,800 Speaker 5: deficit Republicans. You know, this is Representative Chip Roy for example, 265 00:12:00,080 --> 00:12:02,520 Speaker 5: he just tweeted out about twenty minutes ago that he 266 00:12:02,600 --> 00:12:04,040 Speaker 5: is not going to vote for a bill that he 267 00:12:04,160 --> 00:12:08,319 Speaker 5: in his words, would add twenty trillion dollars to the deficit. Now, 268 00:12:08,400 --> 00:12:09,920 Speaker 5: I'm not going to say that we think we'll go 269 00:12:10,000 --> 00:12:12,280 Speaker 5: that far, but you are going to see a lot 270 00:12:12,280 --> 00:12:15,239 Speaker 5: of statements from Republicans who are not happy with this legislation. 271 00:12:15,520 --> 00:12:17,880 Speaker 5: And it's just part of the negotiation. So look for this. 272 00:12:18,080 --> 00:12:21,120 Speaker 5: Towardo sort of seesaw moment of yes, we have a deal, No, 273 00:12:21,240 --> 00:12:22,839 Speaker 5: we don't have a deal. But I think for the 274 00:12:22,920 --> 00:12:25,120 Speaker 5: next two weeks you're going to see more negative headlines 275 00:12:25,320 --> 00:12:26,199 Speaker 5: than positives. 276 00:12:26,400 --> 00:12:28,600 Speaker 4: And then sometimes maybe around Memorial Day. 277 00:12:28,480 --> 00:12:30,240 Speaker 5: I think the Republicans will start to get a better 278 00:12:30,280 --> 00:12:32,280 Speaker 5: idea of what that plan is going to look like 279 00:12:32,320 --> 00:12:33,960 Speaker 5: in order to get House passage. 280 00:12:34,040 --> 00:12:36,720 Speaker 2: All right, great stuff. Really appreciate Nathan Nathan Dean Bloomberg 281 00:12:36,800 --> 00:12:39,080 Speaker 2: Intelligence senior policy analyst. Joining us there. 282 00:12:40,720 --> 00:12:44,439 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us Live 283 00:12:44,520 --> 00:12:47,600 Speaker 1: weekdays at ten am Eastern on Apple, Coarcklay and Android 284 00:12:47,600 --> 00:12:50,920 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 285 00:12:50,960 --> 00:12:54,120 Speaker 1: you get your podcasts, or watch us live on YouTube. 286 00:12:54,840 --> 00:12:57,600 Speaker 4: Let's get right to our next guest, James Aboute. Joins 287 00:12:57,640 --> 00:13:00,360 Speaker 4: is managing director and chief investment officer of Course Center 288 00:13:00,760 --> 00:13:05,360 Speaker 4: Asset Management. James, we wake up this morning, it seems 289 00:13:05,360 --> 00:13:09,680 Speaker 4: like maybe the trade environments not that terrible, not that strict. 290 00:13:10,640 --> 00:13:11,880 Speaker 4: What do you make about it? And what do you 291 00:13:11,880 --> 00:13:13,199 Speaker 4: make of the markets move today? 292 00:13:14,280 --> 00:13:17,920 Speaker 6: Well, clearly, you know the announcement that the US is 293 00:13:17,960 --> 00:13:20,920 Speaker 6: going to cut tariffs on Chinese goods of thirty percent 294 00:13:20,960 --> 00:13:23,440 Speaker 6: from one hundred and forty five percent for ninety days, 295 00:13:24,480 --> 00:13:26,280 Speaker 6: and then China is going to cut tariffs in the 296 00:13:26,360 --> 00:13:29,240 Speaker 6: US because the ten percent from one hundred twenty five 297 00:13:29,640 --> 00:13:30,280 Speaker 6: is good news. 298 00:13:30,320 --> 00:13:33,240 Speaker 7: It's a it's a truce again. This is a ninety 299 00:13:33,320 --> 00:13:36,079 Speaker 7: day cooling off period, though, I'll have to see what develops, 300 00:13:36,679 --> 00:13:39,400 Speaker 7: you know, unfortunately, what we see with President Trump though, 301 00:13:39,400 --> 00:13:43,400 Speaker 7: as he continues to negotiate against himself in public. It's 302 00:13:43,440 --> 00:13:46,600 Speaker 7: a little like watching the same person playing twins, like 303 00:13:46,720 --> 00:13:49,920 Speaker 7: Michael B. Jordan on Sinners who played the actor or 304 00:13:49,960 --> 00:13:52,640 Speaker 7: the actor who played the Winkeelwash twins in the movie 305 00:13:52,679 --> 00:13:56,760 Speaker 7: The Social Network. It's like the same person negotiating against themselves. 306 00:13:56,760 --> 00:14:00,079 Speaker 7: So I think market's going to remain volerable, and it 307 00:14:00,160 --> 00:14:03,000 Speaker 7: might be a country's best interest to just stall on 308 00:14:03,120 --> 00:14:05,600 Speaker 7: reaching a trade agreement with the United States, given how 309 00:14:05,920 --> 00:14:08,440 Speaker 7: we seem to be able to negotiate against ourselves and 310 00:14:08,440 --> 00:14:09,360 Speaker 7: lowering barriers. 311 00:14:09,600 --> 00:14:13,360 Speaker 2: But to that point, does the market understand that there 312 00:14:13,440 --> 00:14:15,680 Speaker 2: is some kind of a trump put So is the 313 00:14:15,720 --> 00:14:19,080 Speaker 2: reaction function on the initial headline now going to just 314 00:14:19,080 --> 00:14:19,840 Speaker 2: be a little different. 315 00:14:21,520 --> 00:14:24,080 Speaker 7: It's possible, But you know, at the end of the day, 316 00:14:24,120 --> 00:14:26,760 Speaker 7: what we really need to see is the US convert 317 00:14:27,320 --> 00:14:30,280 Speaker 7: this current relationship. And China is the best example of 318 00:14:30,320 --> 00:14:36,080 Speaker 7: a significant trade deficit in return for capital inflows, namely 319 00:14:36,080 --> 00:14:39,720 Speaker 7: into our treasury market, with a trade deficit that somehow 320 00:14:39,760 --> 00:14:43,200 Speaker 7: equals you know, inbound fixed investment. I think there's a 321 00:14:43,280 --> 00:14:45,520 Speaker 7: lot of probability that we can accomplish that with the 322 00:14:45,560 --> 00:14:48,440 Speaker 7: EU in Japan, I'm not so sure we can accomplish 323 00:14:48,520 --> 00:14:49,160 Speaker 7: that with China. 324 00:14:50,240 --> 00:14:53,040 Speaker 4: All right, James as a chief investment officer and somebody 325 00:14:53,240 --> 00:14:55,600 Speaker 4: manages money other folks' money. 326 00:14:56,320 --> 00:14:57,160 Speaker 7: What do you do here? 327 00:14:57,360 --> 00:15:00,000 Speaker 4: How's your world changed in the last four or five months? 328 00:15:00,200 --> 00:15:01,800 Speaker 8: Here? Well? 329 00:15:03,280 --> 00:15:05,880 Speaker 6: Where of the belief that the risk of recession has 330 00:15:06,000 --> 00:15:06,840 Speaker 6: been reduced. 331 00:15:07,400 --> 00:15:09,600 Speaker 7: So clearly when you think about that, you know what 332 00:15:09,840 --> 00:15:13,400 Speaker 7: sector should investors be looking at? And we've been very 333 00:15:13,480 --> 00:15:16,560 Speaker 7: much pounding the table that US regional banks are poised 334 00:15:16,560 --> 00:15:20,480 Speaker 7: to benefit from number of tailwinds. One's a steepening yield curve, 335 00:15:21,080 --> 00:15:25,200 Speaker 7: better loan activity, some degree of acceleration in M and A, 336 00:15:25,720 --> 00:15:29,400 Speaker 7: and even amasing of a regulatory environment. So you know, 337 00:15:29,440 --> 00:15:32,320 Speaker 7: when you look at the regional banks after the recent 338 00:15:32,400 --> 00:15:34,720 Speaker 7: sell off that we had, with many trading at price 339 00:15:34,760 --> 00:15:38,680 Speaker 7: the tangible book multiples just above one, they have what 340 00:15:38,800 --> 00:15:42,320 Speaker 7: we believe to be the best asymmetrical opportunity in the market, 341 00:15:42,400 --> 00:15:46,160 Speaker 7: and see them as a prime beneficiary of increased US 342 00:15:46,200 --> 00:15:50,080 Speaker 7: on shoring and a movement of supply chains to domestic manufacturers. 343 00:15:50,080 --> 00:15:52,760 Speaker 7: So you know, for us, the source of funds that 344 00:15:52,760 --> 00:15:55,920 Speaker 7: people should be looking at are consumer stables. Giving the 345 00:15:56,000 --> 00:15:58,880 Speaker 7: recent disappointment and not really being very defensive at all, 346 00:15:59,200 --> 00:16:02,520 Speaker 7: and even the magnific since seven. We think the terrific 347 00:16:02,600 --> 00:16:08,040 Speaker 7: opportunity for you know, active management now is really quite unprecedented, 348 00:16:08,520 --> 00:16:11,440 Speaker 7: and this pivotal moment away from the magnificent seven away 349 00:16:11,520 --> 00:16:13,440 Speaker 7: as the year progresses, might be quite strong. 350 00:16:14,160 --> 00:16:16,080 Speaker 2: All right, James, really appreciate it. Thank you so much. 351 00:16:16,240 --> 00:16:19,360 Speaker 2: I don't end your position at all. Jams about day, Benagin, 352 00:16:19,400 --> 00:16:23,040 Speaker 2: Director and chief investment officer at a Center Asset Management. 353 00:16:24,760 --> 00:16:28,480 Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live 354 00:16:28,560 --> 00:16:31,640 Speaker 1: weekdays at ten am Eastern on Apple Coarcklay and Android 355 00:16:31,640 --> 00:16:34,960 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 356 00:16:35,040 --> 00:16:38,160 Speaker 1: you get your podcasts, or watch us live on YouTube. 357 00:16:39,000 --> 00:16:42,000 Speaker 4: You know, So we've already got some agreements here. I 358 00:16:42,000 --> 00:16:44,160 Speaker 4: guess one hundred and forty five percent US levies almost 359 00:16:44,240 --> 00:16:46,320 Speaker 4: Chinese imports. That's going to come down to thirty percent, 360 00:16:46,640 --> 00:16:49,000 Speaker 4: one hundred and twenty five percent Chinese duties on US goods. 361 00:16:49,040 --> 00:16:52,240 Speaker 4: That will drop the ten percent for three months to 362 00:16:52,280 --> 00:16:54,640 Speaker 4: get the country's time to negotiate a broader agreement, so 363 00:16:55,120 --> 00:16:57,160 Speaker 4: maybe they can get something done and maybe a discussion 364 00:16:57,160 --> 00:16:59,280 Speaker 4: between the two leaders can accelerate that. 365 00:16:59,400 --> 00:17:01,320 Speaker 2: Yeah, and that raises the question of what do you 366 00:17:01,360 --> 00:17:01,960 Speaker 2: do with the markets? 367 00:17:02,000 --> 00:17:02,120 Speaker 3: Right? 368 00:17:02,120 --> 00:17:03,520 Speaker 2: So you look at the rally and you're like, oh, 369 00:17:03,560 --> 00:17:06,199 Speaker 2: you have lots of optimism, etc. But I wonder in 370 00:17:06,240 --> 00:17:08,800 Speaker 2: reality how much of that is actually funds. You've got 371 00:17:08,800 --> 00:17:11,680 Speaker 2: a couple of things going on right, Commodity trading advisors 372 00:17:11,720 --> 00:17:14,359 Speaker 2: so they're called CTAs. You have volatility controlled funds. You 373 00:17:14,359 --> 00:17:16,960 Speaker 2: have hedge funds where they sort of shift around based 374 00:17:17,000 --> 00:17:19,159 Speaker 2: on how much risk they're allowed to kind of carry, 375 00:17:19,400 --> 00:17:22,200 Speaker 2: based on what the markets actually do. So City says 376 00:17:22,680 --> 00:17:24,800 Speaker 2: that CTAs have flipped long on the S and P, 377 00:17:24,960 --> 00:17:26,720 Speaker 2: their max long on the Nest at one hundred and 378 00:17:26,720 --> 00:17:30,439 Speaker 2: now covering shorts in the Russell two thousand based on 379 00:17:30,560 --> 00:17:33,040 Speaker 2: moves this morning, and that if you see kind of 380 00:17:33,080 --> 00:17:34,520 Speaker 2: a change in the S and P, you're going to 381 00:17:34,560 --> 00:17:37,080 Speaker 2: have to add on to this, meaning that just because 382 00:17:37,080 --> 00:17:39,920 Speaker 2: you see a rally doesn't mean it's real extended fundamentals. 383 00:17:40,040 --> 00:17:41,520 Speaker 4: Yep, it's so fabulous. 384 00:17:41,520 --> 00:17:41,760 Speaker 3: Point. 385 00:17:41,880 --> 00:17:44,679 Speaker 4: That's good. I love Storic Kaiser from the folks over 386 00:17:44,720 --> 00:17:47,480 Speaker 4: at City with his notes are very clear and easy 387 00:17:47,480 --> 00:17:50,240 Speaker 4: to understand. I appreciate getting those notes. Let's go to 388 00:17:50,280 --> 00:17:54,000 Speaker 4: a pro here. Brent Standardge, President Consumer and Business banking 389 00:17:54,080 --> 00:17:57,320 Speaker 4: at Huntington Bank. Hey, bring, We've got it. Just tremendous 390 00:17:57,359 --> 00:18:00,280 Speaker 4: amounts of volatilty so far here in twenty twenty five. 391 00:18:00,640 --> 00:18:04,640 Speaker 4: When you go sit down with your corporate clients, how 392 00:18:04,680 --> 00:18:06,800 Speaker 4: is it reflected in their activity? Are they sitting on 393 00:18:06,840 --> 00:18:08,560 Speaker 4: their hands? Are they trying to move forward? What are 394 00:18:08,560 --> 00:18:10,320 Speaker 4: you hearing? Well? 395 00:18:10,520 --> 00:18:12,199 Speaker 8: Paul, First of all, thank you for having us on 396 00:18:12,240 --> 00:18:15,920 Speaker 8: the show. We are closely monitoring all the developments that 397 00:18:16,080 --> 00:18:19,719 Speaker 8: relate to the broader economy, and today's announcement is clearly 398 00:18:19,760 --> 00:18:23,040 Speaker 8: another data point. Our focus has been on our customers 399 00:18:23,080 --> 00:18:25,760 Speaker 8: and what we're hearing specifically from our customers is really 400 00:18:25,800 --> 00:18:28,480 Speaker 8: more of a wait and see. All of the events 401 00:18:28,480 --> 00:18:31,920 Speaker 8: of the last few months have introduced a higher level 402 00:18:31,920 --> 00:18:34,800 Speaker 8: of uncertainty and as a result, many of our customers 403 00:18:34,840 --> 00:18:38,960 Speaker 8: are waiting to see what will happen and delaying some 404 00:18:39,080 --> 00:18:41,600 Speaker 8: decisions to obtain more certainty. 405 00:18:42,520 --> 00:18:46,159 Speaker 2: So, based on that, what are the expansion plans for 406 00:18:46,320 --> 00:18:48,560 Speaker 2: Huntington Like you are you doubling down? 407 00:18:48,600 --> 00:18:48,760 Speaker 3: Here? 408 00:18:48,840 --> 00:18:50,679 Speaker 2: Are you staying? Are you holding pat Because a lot 409 00:18:50,720 --> 00:18:52,359 Speaker 2: of companies are just like, we're in a weight and 410 00:18:52,359 --> 00:18:55,640 Speaker 2: see mode. We're delaying, but we're not abandoning kind of projects. 411 00:18:55,720 --> 00:18:56,760 Speaker 2: How are you guys thinking. 412 00:18:56,640 --> 00:19:00,560 Speaker 8: About it, Well, we're continuing forward with our investment plans. 413 00:19:00,600 --> 00:19:04,959 Speaker 8: This is an important proof point for our organic growth story. 414 00:19:05,840 --> 00:19:09,080 Speaker 8: We're very bullish about our opportunity that exists in the Carolinas. 415 00:19:09,080 --> 00:19:11,720 Speaker 8: It's a fast growing, dynamic market. We already have thirty 416 00:19:11,760 --> 00:19:15,560 Speaker 8: thousand customers there. Our approach and culture have allowed us 417 00:19:15,560 --> 00:19:19,440 Speaker 8: to attract some really fantastic and talented individuals. And our 418 00:19:19,480 --> 00:19:22,280 Speaker 8: business model really resonates in the market, which is around 419 00:19:22,320 --> 00:19:27,639 Speaker 8: local and bringing highly qualified bankers with local relationships to 420 00:19:27,800 --> 00:19:31,920 Speaker 8: those customers, supported with national expertise. And so we believe 421 00:19:32,040 --> 00:19:35,960 Speaker 8: that in times like this, those customers and those relationships 422 00:19:36,000 --> 00:19:39,560 Speaker 8: are even more important, and so we're continuing forward with 423 00:19:39,640 --> 00:19:42,760 Speaker 8: our investment plans, not just in the Carolinas, but across 424 00:19:42,800 --> 00:19:43,280 Speaker 8: the country. 425 00:19:44,280 --> 00:19:47,159 Speaker 4: What are the areas that for your clients that you 426 00:19:47,240 --> 00:19:50,080 Speaker 4: find most attractive? What are the sectors that you guys 427 00:19:50,200 --> 00:19:52,280 Speaker 4: like right now as you approach your corporate clients. 428 00:19:53,240 --> 00:19:56,719 Speaker 8: Well, our business model is based on having relationships with 429 00:19:56,880 --> 00:20:01,080 Speaker 8: middle market, commercial and small business customers, and we do 430 00:20:01,160 --> 00:20:04,520 Speaker 8: that across a wide variety of different industries, and then 431 00:20:04,600 --> 00:20:09,680 Speaker 8: we support those local relationships with industry expertise, so we're 432 00:20:09,720 --> 00:20:13,800 Speaker 8: not focused in on a specific industry. We're more focused 433 00:20:13,840 --> 00:20:18,639 Speaker 8: on medium and small businesses and supporting their day to 434 00:20:18,680 --> 00:20:19,200 Speaker 8: day needs. 435 00:20:21,080 --> 00:20:23,800 Speaker 2: Talk to me about the concerns that your customers are 436 00:20:23,840 --> 00:20:27,000 Speaker 2: talking about and their needs and how that might have changed. 437 00:20:28,440 --> 00:20:34,720 Speaker 8: Well, going back to a previous comment, it has introduced uncertainty. Obviously, 438 00:20:34,800 --> 00:20:38,400 Speaker 8: not being aware of what a product will cost or 439 00:20:38,520 --> 00:20:43,040 Speaker 8: how the supply chain may be impacted causes businesses to 440 00:20:43,119 --> 00:20:48,320 Speaker 8: stop and consider. And we're seeing changes almost every day, 441 00:20:48,400 --> 00:20:51,560 Speaker 8: and businesses are figuring it out and they're talking to 442 00:20:51,640 --> 00:20:56,840 Speaker 8: their own suppliers, and that's clearly leads to uncertainty. So 443 00:20:56,960 --> 00:21:00,720 Speaker 8: as these decisions are made, as things become more clear, 444 00:21:00,960 --> 00:21:07,000 Speaker 8: we believe businesses will continue and resume any investment that's 445 00:21:07,000 --> 00:21:07,640 Speaker 8: been delayed. 446 00:21:08,359 --> 00:21:11,560 Speaker 4: So, you know, a lot of folks are concerned that 447 00:21:11,680 --> 00:21:15,080 Speaker 4: with tariffs, it's kind of the small, mid sized businesses 448 00:21:15,080 --> 00:21:17,480 Speaker 4: that might be impacted the most. The inability to take 449 00:21:17,840 --> 00:21:20,840 Speaker 4: costs increases and pass them through to customers on like 450 00:21:20,880 --> 00:21:23,720 Speaker 4: say Walmart or something. Is that what you're hearing from 451 00:21:23,760 --> 00:21:27,160 Speaker 4: your customers, Well, I don't think they know at this point. 452 00:21:27,960 --> 00:21:30,240 Speaker 8: Clearly, this is a time for us to be closer 453 00:21:30,280 --> 00:21:34,159 Speaker 8: to customers and be able to support them regardless of 454 00:21:34,280 --> 00:21:35,480 Speaker 8: the economic scenario. 455 00:21:35,800 --> 00:21:37,480 Speaker 4: And we believe that we're well. 456 00:21:37,280 --> 00:21:39,520 Speaker 8: Positioned to do this, but I don't think they know 457 00:21:39,640 --> 00:21:44,440 Speaker 8: at this point everyone or every business certainly is impacted 458 00:21:45,359 --> 00:21:48,199 Speaker 8: and supplies chains are impacted, and we want to be 459 00:21:48,240 --> 00:21:50,800 Speaker 8: there to support them as they make decisions day to day. 460 00:21:50,840 --> 00:21:52,480 Speaker 8: But at this point it's a little bit early to 461 00:21:52,520 --> 00:21:53,400 Speaker 8: know that there. 462 00:21:53,359 --> 00:21:56,800 Speaker 2: Was a lot of deposit competition for savings that seem 463 00:21:56,880 --> 00:21:58,600 Speaker 2: to then hit the pause button. 464 00:21:59,240 --> 00:22:02,040 Speaker 4: Where do you are we in deposit. 465 00:22:01,640 --> 00:22:03,679 Speaker 2: Beta and how do you stay competitive? 466 00:22:04,920 --> 00:22:07,800 Speaker 8: Well, we're very, very fortunate that we have a very 467 00:22:07,840 --> 00:22:11,679 Speaker 8: granular deposit base. In fact, if you look at the 468 00:22:11,680 --> 00:22:14,439 Speaker 8: percentage of deposits that we have their FDIC insured, it's 469 00:22:14,480 --> 00:22:15,600 Speaker 8: the highest in our peer group. 470 00:22:16,440 --> 00:22:18,879 Speaker 4: And that deposit base has been quite stable for us. 471 00:22:18,920 --> 00:22:20,159 Speaker 8: In fact, we've been able to grow it at a 472 00:22:20,160 --> 00:22:23,959 Speaker 8: period of time when others have not been successful. So 473 00:22:24,000 --> 00:22:28,360 Speaker 8: we're continuing to see that same trend. We've been very 474 00:22:28,400 --> 00:22:32,119 Speaker 8: successful at continuing to grow the deposit portfolio. Obviously, as 475 00:22:32,200 --> 00:22:34,879 Speaker 8: rates come down, interest expense and the cost of that 476 00:22:34,920 --> 00:22:38,679 Speaker 8: deposit book has come down, and we will continue to 477 00:22:38,720 --> 00:22:44,640 Speaker 8: monitor that closely, but it is the deposit environment has 478 00:22:44,720 --> 00:22:46,960 Speaker 8: been competitive for some period of time, and I would 479 00:22:46,960 --> 00:22:50,840 Speaker 8: say there hasn't been dramatic changes in the last number 480 00:22:50,840 --> 00:22:51,320 Speaker 8: of months. 481 00:22:52,119 --> 00:22:53,879 Speaker 4: All right, Brent, thank you so much. We appreciate A. 482 00:22:53,960 --> 00:22:57,959 Speaker 4: Bri Stanbridge. He is President Consumer and Business Banking at 483 00:22:58,040 --> 00:23:03,439 Speaker 4: Huntington Bank in Columbus, Ohio. That is the bank of 484 00:23:03,560 --> 00:23:07,119 Speaker 4: mister Matthew Miller. So how about that talk about if 485 00:23:07,280 --> 00:23:10,840 Speaker 4: Grangler depositor right there. So we'd like to speak to 486 00:23:11,119 --> 00:23:13,399 Speaker 4: some of these bankers at the mid market, but a 487 00:23:13,440 --> 00:23:15,760 Speaker 4: should get a sense of kind of how the corporate 488 00:23:16,119 --> 00:23:18,760 Speaker 4: and mid size and middle market companies you're behaving and 489 00:23:18,840 --> 00:23:21,240 Speaker 4: are they investing, how are they investing, So those bankers 490 00:23:21,280 --> 00:23:22,240 Speaker 4: give us a good view there. 491 00:23:22,920 --> 00:23:27,600 Speaker 1: This is the Bloomberg Intelligence podcast, available on Apple, Spotify, 492 00:23:27,800 --> 00:23:31,280 Speaker 1: and anywhere else you get your podcasts. Listen live each 493 00:23:31,320 --> 00:23:35,040 Speaker 1: weekday ten am to noon Eastern on Bloomberg dot Com, 494 00:23:35,160 --> 00:23:38,720 Speaker 1: the iHeartRadio app, tune In, and the Bloomberg Business app. 495 00:23:39,119 --> 00:23:42,040 Speaker 1: You can also watch us live every weekday on YouTube 496 00:23:42,440 --> 00:23:45,480 Speaker 1: and always on the Bloomberg terminal