Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane. Along
Speaker 1: with Jonathan Ferrell and Lisa Brownowitz. Daily we bring you
Speaker 1: insight from the best and economics, finance, investment, and international relations.
Speaker 1: Find Bloomberg Surveillance on Apple Podcast, Suncloud, Bloomberg dot com,
Speaker 1: and of course on the Bloomberg terminal. We don't need
Speaker 1: a history lesson right now, John, particularly with the guests
Speaker 1: that we have now, in all that he has lived
Speaker 1: in Lithuania, but needless to say, the speech, which I
Speaker 1: read every word of was absolutely extraordinary in translation. None
Speaker 1: of this has been lost in translation. For Vigadishutzkis, he
Speaker 1: is the former European Ambassador to Russia, but beyond that
Speaker 1: has lived his Lithuania and he joins us this morning
Speaker 1: knowing that this is a short two twenties three miles
Speaker 1: across Lithuanian Vilnius to Colin and Grad. Ambassador, thank you
Speaker 1: so much for joining us. Robert Kagan Mike Robert Kagan
Speaker 1: last night in the Washington Post simply said the Baltic
Speaker 1: States are the most at risk by Mr. Putin's perception
Speaker 1: of his Russian Empire, whatever that may be. Howard Risks
Speaker 1: this morning is Estonia Latvia and you're Lithuania. Well, we consent,
Speaker 1: of course because even being lumbers of NATO, the Mightists
Speaker 1: and the largest alliance military alliance in the world and
Speaker 1: members of the EU, our history taught us we can
Speaker 1: not afford ourselves to be complacent. And of course, when
Speaker 1: the outcast Cold War is being rejected, and you know
Speaker 1: that that that the Bodhis and the twenty first century
Speaker 1: being written brutally and with a force, there's no to
Speaker 1: become glazing. And that's why we hope that one of
Speaker 1: the resolves nat TO and United States administration will demonstrate
Speaker 1: by station i pulemanent troops in the Baltic States. When
Speaker 1: we see the moments of this weekend, the question has
Speaker 1: to be the application of NATO troops and indeed United
Speaker 1: States troops. Do you need to see a more active
Speaker 1: summoning of those troops to your Lithuania. Yes, we appreciate,
Speaker 1: you know, support what the United States has been in
Speaker 1: a very demonstrating recent visit of Secretary of Defense with Austin. However,
Speaker 1: you know Kremlin respects only US boats on the ground.
Speaker 1: I know that from our experience, and that's what we
Speaker 1: what we expect pray and requests for the US to
Speaker 1: come to to rescue and prevent any kind of entertainments
Speaker 1: Gremlin may consider. So is it forced that ultimately is
Speaker 1: going to make a difference to latter where Putin forget
Speaker 1: about economic sanctions that he spent the past eight years
Speaker 1: trying to fortify his economy economy against the gaudis well.
Speaker 1: I think it will require a jew strategic stamina and
Speaker 1: Western resolves, especially European resolves, to recognize what's going on.
Speaker 1: What puts In said yesterday, Um, I may sound politically
Speaker 1: incorrect is nothing new. He's been pursuing this narrative of
Speaker 1: assertation and aggressiveness since two thousand. Certain he plainly said
Speaker 1: that he does not consider Ukraine to be a normally
Speaker 1: even the state. It's part of Russia, It's part of
Speaker 1: Russia nation. And you know, rewriting brutally the borders with
Speaker 1: disrespect to basic rules is showing experience, and that's what
Speaker 1: we hope that It will require a political stamina, will
Speaker 1: require troops of the ground, talking diplomacy but also sanctions
Speaker 1: as well well. And speaking of diplomacy, are are the
Speaker 1: Mixed A chords now dead? I think that I mean
Speaker 1: Putting the said it's it's it's over, and I I mean,
Speaker 1: you know, how how would you expect that to be written?
Speaker 1: I think it means records are gone. UH, They've been
Speaker 1: shredded by by Gremlin. And now the question is how
Speaker 1: the West will will respond. I wish that the West
Speaker 1: will respond in a strategic terms. That's how what Putting understands.
Speaker 1: And it will require sanctions most profound and severe, maybe
Speaker 1: freezing them before the summit between the President Biden and
Speaker 1: and Putin and then moving forward that would require that
Speaker 1: would require also a greater support to Ukraine because it's
Speaker 1: all about I mean independence and sovereignty of free nation.
Speaker 1: And the time is to come back to to the
Speaker 1: decisions by the West to extend membership Action Plan for
Speaker 1: Ukraine and invite for the negotiation talks into the EU.
Speaker 1: That's how the europe Secluit architecture has to be built
Speaker 1: and maintained. Alongside we stop to putting on confidence building
Speaker 1: measures on arms controls. But it's only part of the
Speaker 1: much more complex puzzle UH and the litmus tests we
Speaker 1: are witnessing the most found in history. Ambassador Jeffrey Sachs
Speaker 1: and the financial Times this weekend. Of course, with all
Speaker 1: of its experience with gorber Schev and Yelsa, Russian professor
Speaker 1: sax as, Look, it's not appeasement, but there needs to
Speaker 1: be a diplomatic negotiation. Do you fear or can you
Speaker 1: imagine that is part of a NATO diplomacy and frankly German,
Speaker 1: France and Russia diplomacy, that we would generate a strip
Speaker 1: of land from Russia across the Kalina Grad. Would that
Speaker 1: be a chip that we would have to give up
Speaker 1: with land across your Lithuania. Well, I think I'm sure
Speaker 1: that is not something what is being considered in Paris,
Speaker 1: Berlin or Washington, d C. In the wild House, we
Speaker 1: we trust, I mean the island, cloud assurances and the
Speaker 1: security into Nadom. George W. Bush, which I was a
Speaker 1: party to host as ambassador of the Swing to United
Speaker 1: States at that time, he said in business anyone as
Speaker 1: as of now who makes the enemy of this wing
Speaker 1: will be the enemy of the United States. We trust
Speaker 1: those wits and we we we count on your support.
Speaker 1: We're not going to have you on the show with
Speaker 1: us this morning, said thank you for out us A
Speaker 1: shouts cast. They form a EU ambassadors to Russia. Let
Speaker 1: us move on here to a discussion with Leslie Felconio,
Speaker 1: senior fixed income Strategies for UBS UBS Growth Wealth Management.
Speaker 1: We're through she could join us in the blur of
Speaker 1: news this morning, Leslie. The short order, is this international
Speaker 1: relations brings yield down? I believe I learned that's price up,
Speaker 1: yield down. Is this the ultimate by the dip or
Speaker 1: you run with the fortune of seeing price up, yield
Speaker 1: down and fixed income? Well, I mean, I think this
Speaker 1: is obviously a short term flight to safety, but I
Speaker 1: don't think that alters actually the long term growth prospects
Speaker 1: that we're seeing, particularly for the US economy. And if anything,
Speaker 1: we would be more in terms of you know, selling
Speaker 1: the rally right now given our outlets that we anticipate,
Speaker 1: you know, at three point eight percent real GDP that
Speaker 1: the consumer is still strong. So you're gonna have this
Speaker 1: flight to safety and sort of these pockets of vulnerability.
Speaker 1: And you know, as we know, we have this kind
Speaker 1: of risk, and we have this kind of short term
Speaker 1: bouts of volatility. You know, investors have a tendency to
Speaker 1: focus on downside side opportunity. Fold in here, UBS Economics
Speaker 1: did fifty basis did fifty point rate rate increase? Did
Speaker 1: that drift away this weekend? I think the probability is
Speaker 1: has become increasingly low, even not just just just meet
Speaker 1: this weekend, but even you know, before this week and
Speaker 1: listening to some of the FED rehetoric, I mean, we
Speaker 1: don't think that they're going to start off at the
Speaker 1: fifty basis point rad hike. I mean, I think some
Speaker 1: of the FED rhetoric last week actually showed that. I mean,
Speaker 1: it doesn't mean that they won't do fifty later on,
Speaker 1: but to start off with that might be a little
Speaker 1: bit too extreme. And look, I mean, they're still buying bonds,
Speaker 1: you know, they're still increasing their balance sheet, and I
Speaker 1: think they're going to wait to see exactly how the
Speaker 1: base case effects turn in terms of inflation the second
Speaker 1: half before they do such an aggressive move. Well, speaking
Speaker 1: of aggressive moves, obviously the West is reacting to what
Speaker 1: we saw from about Vladimir Putin over the long weekend.
Speaker 1: We're now hearing from the UK's Boris Johnson that the
Speaker 1: UK will sanction five Russian banks as well as individuals.
Speaker 1: When we look at the potential implications for the fixed
Speaker 1: income market of this geopolitical crisis Leslie, and specifically the
Speaker 1: energy complex. What's the read through and to break evens
Speaker 1: inflation expectations and therefore monetary policy ultimately. Well, you know,
Speaker 1: it's interesting because if you look at things like the
Speaker 1: five year factored forward swap, it's like a two point
Speaker 1: three percent Even if you look at the break even today,
Speaker 1: we're noting this big rise in inflation expectations. I think
Speaker 1: it's a component, but I don't think it's going to
Speaker 1: be a driver, and I don't think it's going to
Speaker 1: alter necessarily the fence path, which we do believe will
Speaker 1: be around five right types by the end of the year.
Speaker 1: It will probably be a big gradual of twenty five
Speaker 1: the data that we know right now. But I don't
Speaker 1: think this is going to have a need jerk reaction
Speaker 1: where the FET has to become even more hawkish because
Speaker 1: we're seeing rise in energy prices, all right. So there's
Speaker 1: obviously the break even component, Leslie. There's also the real
Speaker 1: yields component. Do we reach positive territory will they stay negative?
Speaker 1: Well even listen, I think five year real yields are
Speaker 1: very native. I mean, the tenure we've had a correction
Speaker 1: with we're down negative rate fifty right now. We probably
Speaker 1: go to plus or minus twenty, but that five year
Speaker 1: real yield has remained stubbornly negative, and even though nominal
Speaker 1: yields in the five year side had gotten almost a
Speaker 1: two percent, which by the way, we don't think it's
Speaker 1: going to get that much higher. However, we do think
Speaker 1: those break even inflation expectations are going to fall from
Speaker 1: that two point nine level that we see right now,
Speaker 1: probably closer to that five year five year swop about
Speaker 1: two point three. So we are expecting really yields to
Speaker 1: Risehether or not they turned positively this year is a
Speaker 1: question mark, but they could be close to it. Leslie,
Speaker 1: thank you for paying with us. What a busy morning
Speaker 1: for everybody. Leslie found County on there of UBS Global
Speaker 1: Wath Management joining us now to give perspective here, particularly
Speaker 1: for those listening in Europe. And Merita Son joins as
Speaker 1: founder director of Research at Energy Aspects. I must say
Speaker 1: she's just fabulous at the dynamics of supply and demand
Speaker 1: in energy. Emerita. My fault is I don't spend enough
Speaker 1: time talking about natural gas. What can Mr Putin, Mr
Speaker 1: Medvedev do to change the dialogue of natural gas in Europe. Well,
Speaker 1: I think natural gas, of course, you know, it's it's
Speaker 1: been very prominently featured in in the media last year,
Speaker 1: particularly because of North Stream too. But I will say
Speaker 1: Putin has come out even just a few hours ago
Speaker 1: and said that gas supplies will be uninterrupted, and I
Speaker 1: think that has been one of the big fears in
Speaker 1: the market, whether because of either Western sanctions or because
Speaker 1: Russia um decides to turn off both oil and gas
Speaker 1: supplies to Europe. But they have never done that before,
Speaker 1: including during the Cold War. So again I think Russia
Speaker 1: is not going to be the one acting on that
Speaker 1: and using energy as a weapon. But of course we've
Speaker 1: seen the headlines with Germany halting the process, which which
Speaker 1: you know, which was one of the things we were
Speaker 1: expecting should the should the tensions escalct But you know,
Speaker 1: John emailed me a Sunday morning. Emread about five am
Speaker 1: the Netherlands natural gas code t ZT one commodity And
Speaker 1: the bottom line is it was cheap and then it
Speaker 1: became expensive with a spike up here, and it's come
Speaker 1: down and been managed. Who's managing the price of natural
Speaker 1: gas in Europe right now? The recent natural gas prices
Speaker 1: have managed to come down in Europe has actually been
Speaker 1: thanks to Asia, because Asia had bought a whole lot
Speaker 1: of ellergy cargoes if you remember, not this winter, the
Speaker 1: prior winter was very very cold, they were caught short.
Speaker 1: So then as a result of them over buying and
Speaker 1: the weather was fairly mild, they had some access which
Speaker 1: they then managed to send over to Europe. That is
Speaker 1: what has helped gas prices come off. But fundamentally, I
Speaker 1: mean we saw record high TTF prices, which is the
Speaker 1: price you're referring to last year. Those fundamentals haven't changed.
Speaker 1: Demand remains very very high, and also supplies, regardless of
Speaker 1: what's going on geopolitically with Russia, Russian supplies into Europe
Speaker 1: have remained very low and we weren't even expecting north
Speaker 1: Stream to to come online till November of this year anyway,
Speaker 1: so it is still a very tight market. And reason
Speaker 1: how did you interpret the language from Chancellor Shelts earlier,
Speaker 1: was that a man putting things on ice or a
Speaker 1: man killing it. Well, look at the West has to
Speaker 1: be seen to be doing something right, and we've maintained
Speaker 1: our view that there will not be sanctions on energy supplies,
Speaker 1: prompt energy supplies, whether it be for oil or for gas.
Speaker 1: Um Europe is just way too dependent. Means thirty five
Speaker 1: percent of gas European gas comes from Russia, thirty eight
Speaker 1: and thirty nine percent of oil and diesel comes from Russia.
Speaker 1: So it's it's just going to hurt the West a
Speaker 1: lot more, especially with crude close to hundred dollars and
Speaker 1: gas still very very high. Yes it's off the record highest,
Speaker 1: but it's still high. So um they need to be
Speaker 1: doing something, but it's going to be around technology sanctions,
Speaker 1: potentially some bank some individuals being sanctioned. And again this
Speaker 1: was something where yes north Stream too, it wasn't supposed
Speaker 1: to be coming online tomorrow right it is still further
Speaker 1: down the pipeline, and it was something along the lines
Speaker 1: of future projects that could be affected and north Stream
Speaker 1: to falls under that category. And Rachel, we've got a
Speaker 1: decent understanding of where we are now and trying to
Speaker 1: work out where it will be by the time we
Speaker 1: get to the end of the year. And Redwards, our
Speaker 1: colleague good friend here at Blombergh, caught up with Russell Hardy,
Speaker 1: the chief executive officer AVITZL Group and he said on
Speaker 1: the demand side, the one d Emberil number is probably
Speaker 1: going to be excited this year. This was on crude.
Speaker 1: He went on to say demand is going to surge
Speaker 1: in the second half, and so we understand how tight
Speaker 1: things are now, how tight do you think they'll be
Speaker 1: by the time we get to the end of twenty two.
Speaker 1: I think the couple of things I would say where
Speaker 1: we could get some extra supplies. Iran is of course
Speaker 1: one of them. Potential sanctions lifting in the coming weeks,
Speaker 1: and you could get more oil out in the second
Speaker 1: half of the year. US producers again there's still being
Speaker 1: very disciplined, but potentially you could eke out a little
Speaker 1: bit more from them. But Russell Hardy is exactly right.
Speaker 1: We've been talking about this for months now that there
Speaker 1: is a lot of pent up demand. Demand is going
Speaker 1: to be rising, particularly in Asia, and we've talked about
Speaker 1: this on this show before. Asia just hasn't been able
Speaker 1: to come out unlike the West over the last few
Speaker 1: years because of COVID restrictions. So they are itching to
Speaker 1: fly and just get back to a normal life. So
Speaker 1: there is a lot of demand that we are going
Speaker 1: to see, particularly in the summer and the only way
Speaker 1: to then solve for this market, because you're not going
Speaker 1: to get much incremental supplies, is going to be through
Speaker 1: high prices because demand growth has to moderate. How much
Speaker 1: higher is one hundred dollar oil and above one hundred
Speaker 1: dollar royal sustainable aim riada Um. Well, if you think
Speaker 1: about back to two thousand and eight compared or if
Speaker 1: you do it on an inflation adjusted basis, oil prices
Speaker 1: need to be thirty higher now than in two thousand
Speaker 1: and eight if you are to have the same impact
Speaker 1: on demand. So yes, it could go significantly higher before
Speaker 1: you start having an impact on demand. And Tom's going
Speaker 1: to like this because it talks about elasticities. People have
Speaker 1: actually saved up a lot more money and governments are
Speaker 1: handing out a lot more checks, which means income elasticity
Speaker 1: right now is a lot stronger than price elasticity. So
Speaker 1: even at hundred dollar royal, even potentially at hundred twenty
Speaker 1: dollar oil, you don't see the slow down that you've
Speaker 1: seen in the past. We've already on our numbers. Oil
Speaker 1: demand is already above hundred million barrels per day. We
Speaker 1: will surpast two thousand and nineteen levels in the second
Speaker 1: half of this year, and we will be effectively growing
Speaker 1: by over three million barrels per day this year. When
Speaker 1: does supply and demand then come back into balance or
Speaker 1: more of a balance, and start to change that equation.
Speaker 1: How long is it going to take? I think this
Speaker 1: is not a short term thing, you know, a hundred
Speaker 1: dollar oil. I mean we've been calling for a hundred
Speaker 1: pluss dollar oil between twenty three and twenty six for
Speaker 1: a while, and that is precisely because this isn't a
Speaker 1: short term phenomenal show. You know, you're not going to
Speaker 1: get hundred dollar roil necessarily like this year on a
Speaker 1: sustained basis, geopolitical risk, socide. But this is ultimately about
Speaker 1: under investment. We've had years of underinvestment and now it's
Speaker 1: getting much much worse due to all the narrative around
Speaker 1: energy transition. But demand simply isn't reacting. If anything, demand
Speaker 1: is actually rising quicker than anyone had expected. So therefore
Speaker 1: there's a huge policy mismatch. Governments are coming out and
Speaker 1: talking about, you know, at the end to fossil fueld
Speaker 1: without actually doing anything to reduce demand. It's going to
Speaker 1: be here for a few years. You know, it really
Speaker 1: shows up John and I got ratios in my head
Speaker 1: and reader said that was brilliant. The responsiveness is given
Speaker 1: a higher incomes. It what barrel size, emery decent? Do
Speaker 1: we actually click in demand? Ankst Is it a hundred
Speaker 1: and thirty dollars a barrel? I don't think we know
Speaker 1: the answer quite yet, simply because of the amount of
Speaker 1: income and savings we've got in the economy. But yes,
Speaker 1: I would say it's not lower than one twenties, probably
Speaker 1: around the number you talked about, maybe even slightly higher.
Speaker 1: I'm ready to send thank you of any aspects. Thank
Speaker 1: you very much. Anthony Capiano joins us right now on
Speaker 1: your vacation plans, and I know you can't get a
Speaker 1: room anywhere. I know the drill of course, writing her
Speaker 1: as chief executive officer Marriott International, I want to span
Speaker 1: your two price points and a hundred dollars a night
Speaker 1: out to five than some nights and these are we
Speaker 1: don't need to spend a lot of time on it
Speaker 1: because Kaylee's got legitimate questions. There's big Jet TV stopping
Speaker 1: the world on Friday with the storm and London, and
Speaker 1: the next day he's from the roof of a Marriott
Speaker 1: Courtyard at Heathrow. Tell us about how you run the
Speaker 1: airport's big jet TV standing on. What's it like we're
Speaker 1: having the Courtyard franchise at a lower price point. Well, Tom,
Speaker 1: first of all, thanks for having me. It's it's one
Speaker 1: of the things that I love about our portfolio. I
Speaker 1: get questions all the time with thirty brands, do you
Speaker 1: have too many brands? What's the right number of brands?
Speaker 1: The ability to offer that breadth of price points with
Speaker 1: a hundred and sixty million loyalty members, we feel good
Speaker 1: about the ability to offer that breath for every one
Speaker 1: of our customs. Let's go the other way to the
Speaker 1: Ritz Carlton in Moscow, which is five minute summer night,
Speaker 1: highest rated hotel in the country. How do you see
Speaker 1: and perceive your business in Russia? Given all that's going on,
Speaker 1: how are you going to handle the Ritz Carlton in
Speaker 1: the coming weeks. But we've got about thirty hotels in
Speaker 1: Russia to hotels in the Ukraine as we sit here today,
Speaker 1: with a handful of deals in both entrees in the pipeline.
Speaker 1: Like every country we do business in, UH we are
Speaker 1: about safety and security for our guests and our associates.
Speaker 1: As we've watched the recovery from the pandemic, that recovery
Speaker 1: has largely been fueled by steady improvement in consumer and
Speaker 1: traveler confidence. Political instability, as we've seen over the last
Speaker 1: forty eight hours, certainly has the potential to rattle that confidence,
Speaker 1: so we're watching it closely. Well, let's tie to those
Speaker 1: two stories together in terms of what we're seeing on
Speaker 1: the geopolitical front and what we're seeing with the consumer. Obviously,
Speaker 1: one of the concerns is that if you have repercussions
Speaker 1: on Russia, it's going to disrupt energy flows that is
Speaker 1: going to be more inflationary. How does that translate into
Speaker 1: the discretionary spending of a US consumer. Are they going
Speaker 1: to be spending as much on travel and leisure in
Speaker 1: the face of some of these inflationary pressures. Well, I
Speaker 1: thought it was interesting right before I came on, I
Speaker 1: heard your your prior speaker talk about competition for consumer
Speaker 1: discretionary a spending and more and more folks that have
Speaker 1: been effectively locked down for the last two years thinking
Speaker 1: about spending on travel and tourism. Uh, we watch fuel prices,
Speaker 1: particularly for leisure travel in the US, but I can
Speaker 1: tell you even last summer, despite some variability and fuel prices,
Speaker 1: we didn't see any meaningful dilution of the of the
Speaker 1: velocity of of leisure demand recovery. How far do we
Speaker 1: still have to go in that demand recovery? Tony Well.
Speaker 1: In our fourth quarter earnings call, we talked about the
Speaker 1: fact that globally, revenue per available room was about nineteen
Speaker 1: percent behind where we were fourth quarter two thousand nineteen,
Speaker 1: But that was a forty point improvement from what we
Speaker 1: saw in the first quarter of last year, So we
Speaker 1: are seeing slow, steady improvement. Even in December of last year,
Speaker 1: RevPAR which is the acronym we use, was only down
Speaker 1: eleven percent. Now, we did see a bit of a
Speaker 1: hiccup from the O Macron variant, but we're already back
Speaker 1: to booking volumes ahead of where we were before Oh
Speaker 1: macrons started. Financier question everybody I see, and of course
Speaker 1: if it's good numbers, everybody puts at the top of
Speaker 1: the press release, and if it's not so good numbers,
Speaker 1: it goes down. Do your compare and contrast pre pandemic
Speaker 1: right now, which ratio matters? So you measure back to
Speaker 1: two thousand nineteen. Well, I think rev par matters, I
Speaker 1: think margins matter, and I think unit growth matters, which
Speaker 1: are among the metrics just because the time go to
Speaker 1: margins right now, because that's the heart and soul of it,
Speaker 1: isn't it. Well, we had to make some really tough
Speaker 1: decisions through the pandemic. Above property, we caught about thirty
Speaker 1: percent of our costs. We've seen a several hundred basis
Speaker 1: point improvement of margins at the property level, and we
Speaker 1: as we see pricing power return, we think we can
Speaker 1: preserve the vast majority of those margins. How much of
Speaker 1: that on the cost side, Tony is related to labor?
Speaker 1: What issues are you seeing there? Well, we are certainly,
Speaker 1: particularly in the markets where demand has recovered most quickly,
Speaker 1: we are seeing some wage pressure, as you might expect,
Speaker 1: But as you also might expect, that's where we're seeing
Speaker 1: pricing power uh the strongest. And we think even with
Speaker 1: wage inflation, some of the efficiencies we've identified, we can
Speaker 1: preserve the vast majority of those margin improvements. The airlines,
Speaker 1: now I can report personally in my travel agent, Kayley
Speaker 1: lines is are stupid, crazy busy pack for the summer.
Speaker 1: What is this summer going to be like I think
Speaker 1: it's going to be an all time record. I think
Speaker 1: leisure demand has not slowed even a bit since the
Speaker 1: start of the recovery. And maybe the most notable thing
Speaker 1: to think about, so much of that recovery around the
Speaker 1: world has been driven by domestic travel, and as international
Speaker 1: borders start to open, you've got whole new segments of
Speaker 1: leisure travelers that are gonna be traveling cross board. I
Speaker 1: try to get a Barriott slot in Paris and I
Speaker 1: had to book in Leon just to get in there.
Speaker 1: I mean, that's a joke. It wasn't that far away.
Speaker 1: He's encyclopedic because that's six hotels in Leoni's thinking about
Speaker 1: right now, it's going to be a boom summer. Thank you, Tony,
Speaker 1: thank you so much coming by it. Thanks for having
Speaker 1: early visit. But far more importantly Tony Capiano there on
Speaker 1: the distance from Mary Courtyard to the Ritz Carlton as well.
Speaker 1: This is the Bloomberg Surveillance Podcast. Thanks for listening. Join
Speaker 1: us live weekdays from seven to ten am Eastern on
Speaker 1: Bloomberg Radio and on Bloomberg Television each day from six
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Speaker 1: the terminal. I'm Tom Keene, and this is Bloomberg.