Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along
Speaker 2: with Lisa Bromwitz and Amrie Hordernt. Join us each day
Speaker 2: for insight from the best in markets, economics, and geopolitics
Speaker 2: from our global headquarters in New York City. We are
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Speaker 2: Terminal and the Bloomberg Business app. We begin this hour
Speaker 2: with stocks edgin Kaya as investors digest the latest earnings
Speaker 2: from Nvidia and the IPO pipeline is heating up as
Speaker 2: SpaceX and open Ai make moves to go public. Peter
Speaker 2: Cheerb Academy Securities joins us around the table for more.
Speaker 2: Good morning, Goo to see you.
Speaker 3: Hey, good morning.
Speaker 2: You saw that opening exchange that we just had around
Speaker 2: these IPOs. The tech investment story has changed. We've gone
Speaker 2: from buybacks to lots of capex. We're moving away from
Speaker 2: shrinkage towards maybe tons of supply. What does that mean
Speaker 2: for the investor in this space?
Speaker 3: You know? Right now I think it's all hands on deck.
Speaker 4: Everyone's growing, everyone's spending the money to do it, and
Speaker 4: you're asking the question, you.
Speaker 3: Know, what's the disconnect?
Speaker 4: I think right now, there's so much money to be
Speaker 4: made in the AI space that whether it's four percent,
Speaker 4: six percent, eight percent on interest rates is a trivial
Speaker 4: same sort of thing. I think we've been talking about
Speaker 4: this for the last little while. Electricity prices, right, you
Speaker 4: and I are being affected, but the AI data centers
Speaker 4: they could care less, right, It's such a trivial input
Speaker 4: relative to what they're making. So I think this tailor
Speaker 4: to economers. You've got the AI data center growth, it's booming,
Speaker 4: everyone's trying to get into it. Everyone's rushing headlong. You're
Speaker 4: seeing more and more companies get into it. Just also
Speaker 4: why I think in Vidia's earnings aren't as important because
Speaker 4: there were so many tells what's going on. But the
Speaker 4: rest of the economy is kind of languishing. It feels
Speaker 4: like the jobs aren't there, and the degree of uncertainty
Speaker 4: I think is hitting spending.
Speaker 2: We'll spend some time of that in just a moment.
Speaker 2: Let's just talk about potential constraints. At least it gave
Speaker 2: a not to them. You mentioned energy that's been want
Speaker 2: to discussed. Lisa mentioned capital. What are the prospects of
Speaker 2: capital constraints given how much money is being demanded right now,
Speaker 2: both in fixed income inequity in the coming year.
Speaker 4: So one thing I think we're seeing is a little
Speaker 4: bit of a shift where people are much more comfortable
Speaker 4: owning corporate credit than treasuries, and I think treasuries become
Speaker 4: a very generic asset. I think that's one reason you
Speaker 4: see some pressure on treasuries. As far as I can tell,
Speaker 4: when we're talking to our large asset managers, they're all
Speaker 4: in on credit.
Speaker 3: They love credit, it's cheap.
Speaker 4: You're getting the higher yields from the treasuries, and you've
Speaker 4: got a compelling story there. And you're even seeing some
Speaker 4: of this play out in the super sovereign space, and
Speaker 4: you know, kind of walk you to even talk about
Speaker 4: some of the super sovereigns, but they are trading at
Speaker 4: their closest spreads ever to US treasuries, So you have
Speaker 4: I think this kind of not a version of US treasurees,
Speaker 4: but it's just a generic asset. Right. If you're in Germany,
Speaker 4: now buy buns. If you're in Japan by jgbs. So,
Speaker 4: I think treasuries don't have as much interests, but people are
Speaker 4: piling into credit and they're looking at these opportunities saying, well,
Speaker 4: maybe I want to own xyz S bonds.
Speaker 3: I'm getting extra.
Speaker 4: Fifty sixty eighty one hundred BIPs and I think the
Speaker 4: risk is better and I want And for credit people,
Speaker 4: it's the only way to play some of these AI stories.
Speaker 5: And it seems like right now the bigger risk is
Speaker 5: inflation rather than any kind of hit to growth. Nobody
Speaker 5: is pricing in recession. No one's pricing in some sort
Speaker 5: of serious downturn. Do you agree that credit and equity
Speaker 5: are better hedges for the inflation risk and that is
Speaker 5: where people should be looking.
Speaker 4: So I like credit on that perspective. I think it's
Speaker 4: kind of an interesting place to be. Again, we're not
Speaker 4: seeing recession, though there is this tale of two economies.
Speaker 3: Again.
Speaker 4: I feel like what you're seeing is in the rates market.
Speaker 4: If you went back three months ago and I thought
Speaker 4: before the war started, we could cut, and if we cut,
Speaker 4: even if it was an aggressive cut, we could control.
Speaker 3: The long end of the bond market.
Speaker 4: Right now, I don't think we can cut without controlling
Speaker 4: the long end of the bond market. I think if
Speaker 4: we cut rates right now, we would lose control over
Speaker 4: the long end.
Speaker 3: Of the bond market. So I think we're higher for longer.
Speaker 3: And that's here. It's across the globe.
Speaker 4: Defense spending's ramping up everywhere, so I think you've got
Speaker 4: some pleasure there. But again, I still think we're in
Speaker 4: that three to five percent inflation period. You know, there
Speaker 4: is a lot of excitement. I think the bond market
Speaker 4: has one more leg to higher yields because the one
Speaker 4: thing people keep arguing to me is, well, we're going
Speaker 4: to get all this benefit from AI, and we're going
Speaker 4: to get kind of deflationary pressure from AI. That may
Speaker 4: be true, but I think the next year to two
Speaker 4: years it's all about the cost of out rather than
Speaker 4: the benefits of AI.
Speaker 5: You talk about the tail of two economies and this
Speaker 5: idea that we could get significantly higher rates as a
Speaker 5: result of this push higher. I just wonder at what
Speaker 5: points the story start to come together. It seems like
Speaker 5: either there's a bubble in human capital or there's a
Speaker 5: bubble in the costs that companies are paying for tokens
Speaker 5: and access to some of these AI models. They are
Speaker 5: justifying the increased cost by increased productivity and then laying
Speaker 5: off staff in order to free up the cash. At
Speaker 5: what point does that become an unsustainable equation.
Speaker 3: Well, I think over the.
Speaker 4: Next six months to a year, people will actually, for
Speaker 4: the first time really be able to say, here's what
Speaker 4: I spent on tokens, here's what I kind of could
Speaker 4: have spent on employees and make that decision because until
Speaker 4: fairly recently, right it was all kind of who knows
Speaker 4: what we're spending you'll.
Speaker 3: Get these kind of deals.
Speaker 4: So I think this will actually let people to take
Speaker 4: a closer look, and it will be scary if AI
Speaker 4: turns out being much cheaper than people. The problem is
Speaker 4: you know someone's cost as someone else's like customer, and
Speaker 4: I don't know where all that heads. I had to
Speaker 4: write about UBI Universal Basic in Come two weeks ago
Speaker 4: because it felt like this is a topic that's.
Speaker 3: Going to come up.
Speaker 4: Really kind of hate the concept, but you can clearly
Speaker 4: see a path where if we are doing these layoffs,
Speaker 4: and unlike dot com or I think everyone was excited.
Speaker 3: There is so much angst around this.
Speaker 4: From a personal level, I don't think we've ever seen
Speaker 4: anything like this, and we're heading into an election season
Speaker 4: and the country is already very divided on many things
Speaker 4: AI electricity generation.
Speaker 3: These just seem to be massive political risks.
Speaker 2: We just skipped to the final chapter of the book.
Speaker 2: But since we're there, let's flick a few pages over.
Speaker 2: What's the policy response going to be to all of that?
Speaker 2: If that is indeed the end destination?
Speaker 4: You know, I think you're going to get politicians who
Speaker 4: are going to fight electricity, who are going to fight
Speaker 4: data centers because it's populous. You're going to get some
Speaker 4: who decided to embrace it. And I think you're going
Speaker 4: to see I think you're going to see a shift
Speaker 4: in where people are moving this country. I think this
Speaker 4: is part of our overall as we reindustrialize. I think
Speaker 4: you're going to see the heartland of America do very well.
Speaker 4: I think you're going to see between the Appellations and
Speaker 4: the Rockies continue to do wow.
Speaker 3: Last year I think was the.
Speaker 4: First time in thirty or forty years that that part
Speaker 4: of the country beat the rest of the country in
Speaker 4: population growth and GDP growth. I think you're seeing some
Speaker 4: of the low per capita red states in particular embrace
Speaker 4: these things.
Speaker 3: They're like, hey, we want the jobs.
Speaker 4: We're comfortable, we will deal with the pollution, we will
Speaker 4: deal with the after effects of some of these. And
Speaker 4: I think that you're going to see an opportunity to
Speaker 4: reshape where people live and the demographics in this country.
Speaker 4: And if anything, on the real estate side of things,
Speaker 4: I'm very bullish on the Great Lakes region, on the heartlands,
Speaker 4: the traditional manufacturing, because they have the fresh water, the
Speaker 4: weather's actually conducive to this, they've got the engineering schools.
Speaker 4: I think that could be one of the shifts that
Speaker 4: we see over the next five years, is this kind
Speaker 4: of flood to the coasts and deep south changes a
Speaker 4: little bit as people realize, hey, there are places to
Speaker 4: do this, and if we're going to do industry, we
Speaker 4: need electricity and we need fresh water, and that's an
Speaker 4: abundance in some of these regions that people have to.
Speaker 2: Get it down the rabbit hole. What are you bearish
Speaker 2: on you alluded to it. What would you be short
Speaker 2: in that kind of world?
Speaker 6: You know?
Speaker 4: Right now, I'm very cautious about anything that requires a
Speaker 4: deep spend. From a personal standpoint, I think even the
Speaker 4: people with jobs are looking carefully at their spending. So
Speaker 4: I think construction homes affordability is so real, and again
Speaker 4: that kind of drives me. I think some of the
Speaker 4: really expensive places that you grew up very quickly, especially
Speaker 4: with the COVID sort of experience, I think I would
Speaker 4: avoid those areas. I think there's a chance that people
Speaker 4: decided this was too expensive. I made bad decisions where
Speaker 4: I live. I actually live more in the swamp than
Speaker 4: on the ocean, and you have some potential for that
Speaker 4: to ship first. Sorry about that, but I think that's
Speaker 4: I want to be a little bit buriash there. I
Speaker 4: think some of the growth set areas done, and I
Speaker 4: just I get really uncomfortable with where the spending is
Speaker 4: going to come from.
Speaker 3: And once again I'm.
Speaker 4: Going to spend this weekend doing something completely boring, but
Speaker 4: looking through the jobs data because so many people are
Speaker 4: now asking why is the disconnect? Why do we see
Speaker 4: nothing but doom and gloom on jobs? But the last
Speaker 4: two headline reports from NFP have been really, really strong.
Speaker 2: What shouldn't tell you that?
Speaker 3: I think is once again very overstated.
Speaker 4: I think we're you know, to me, one of the
Speaker 4: biggest mistakes that the BLS does is this birth death model,
Speaker 4: which tries to to make jobs created by new companies.
Speaker 4: They continue to look at EIN or Employment Identification Number
Speaker 4: applications to judge that, and I think we live in
Speaker 4: a world where EI kind of like law school applications
Speaker 4: go up when.
Speaker 3: People are worried about their jobs.
Speaker 4: If all of a sudden you're like, well, maybe I'll
Speaker 4: drive uber on the side or do something.
Speaker 3: There's whole companies.
Speaker 4: Now. I can't remember someone just telling me one of
Speaker 4: the big FinTechs they have a whole setup. You go
Speaker 4: click the asset, sets you up in an LLC, It
Speaker 4: gets you in EIN, you can do all your taxes
Speaker 4: and get all that. So I think we're once again
Speaker 4: making this mistake and seeing, oh, people are creating new businesses.
Speaker 4: I think it's much more people are so nervous they're
Speaker 4: joining the gig economy to supplement their income.
Speaker 2: This was a depressing stant at the program post. Thank
Speaker 2: you sir, now, thank you pretty chip. I do like
Speaker 2: Spade here. It's a lot to think about their promo
Speaker 2: on this technology revolution. Stay with us. More Bloomberg surveillance
Speaker 2: coming up after this Tearan reportedly assessing the latest US
Speaker 2: proposal to reopen the strata from Sam Marie joined US
Speaker 2: Now from Washington for more a Marie that breaking news
Speaker 2: months ago turned around this market equities lower, crew turning
Speaker 2: a little bit high. What do you make of that
Speaker 2: report from.
Speaker 7: Reutter's Yeah, crude turning higher, Jonathan, because the Israelis have
Speaker 7: made it very clear in order for them to view
Speaker 7: that this war is over, the highly enriched uranium that
Speaker 7: iron has needs to be gone or be taken out
Speaker 7: of the country and put into a third party, or
Speaker 7: the United States needs to deal with it. So I'm
Speaker 7: guessing the market is just viewing this as a negative
Speaker 7: towards any time soon that we can get a deal
Speaker 7: between Tehran and Washington and we can bring in a
Speaker 7: RITA send now of energy aspects for a little more
Speaker 7: insight on this, and Rita's Jonathan said, the market turned
Speaker 7: around on this report from Reuters that the Supreme leaders
Speaker 7: issued a directive that the country's near weapons grade uranium
Speaker 7: should not be sent abroad. Does the market now start
Speaker 7: to view that potentially the President's going to have to
Speaker 7: go back to strikes.
Speaker 1: I think the market isn't pricing that fully and yet
Speaker 1: right it's not full escalation. But what I would say
Speaker 1: is that, look, we've been very skeptical each time there
Speaker 1: are these headlines from Pakistan from the US administration or
Speaker 1: we're near. We've been talking about being near to a
Speaker 1: deal for several weeks even months.
Speaker 2: Now.
Speaker 1: The market tends to sell off faster, partly because Brent
Speaker 1: positioning is still long. But in reality, neither side is
Speaker 1: willing to make any significant concession. And I think this
Speaker 1: is exactly proof of that what Iran Supreme Leader has said,
Speaker 1: and it does suggest, at least from the interpretation the
Speaker 1: markets will probably come up with, is that no, the
Speaker 1: a deal isn't near anytime soon, which is what you know,
Speaker 1: which is why prices came off last evening.
Speaker 7: So it's basically living in, as one guest told us yesterday,
Speaker 7: continuous purgatory. Why then our price is still capped at
Speaker 7: this level around one hundred for WTI and one ten
Speaker 7: for Brent.
Speaker 1: Look, that's a great question and something we do a
Speaker 1: lot of analysis on internally as well, because you would think,
Speaker 1: given the scale of the supply losses, we should be
Speaker 1: potentially even double right, what we are seeing is record
Speaker 1: levels of the stocking. We did some analysis on this
Speaker 1: we did start the conflict with about close to four
Speaker 1: hundred million barrels of excess inventory, and so we've run
Speaker 1: down call it almost like half of it. But then
Speaker 1: we've also been drawing down spr at record levels, right,
Speaker 1: so what we are seeing is that the market's in
Speaker 1: a massive deficit. We really haven't gone into outright shortages yet.
Speaker 1: We calculate that's about a month and a half away,
Speaker 1: so it gives us till end June. But what I
Speaker 1: worry about is that everyone, right, and I've been on
Speaker 1: the road for a couple of weeks now, everyone's hopeful
Speaker 1: that okay, the Straits are going to reopen end of June.
Speaker 1: First it was end of May, then it's now end
Speaker 1: of June, and we are really living hand to mouth
Speaker 1: right now running down those infantries. End June comes close
Speaker 1: to that. Refiners around the world. I'm in Asia right
Speaker 1: now extremely underbought. Then when they do come to the market,
Speaker 1: I think the pickup in prices will be material, and
Speaker 1: that's when we can get the overshooting to the upside,
Speaker 1: because there is this sense complacency is the wrong world.
Speaker 1: But hope that things start to pick up a little
Speaker 1: bit and we can just get by just running down
Speaker 1: infantries and then restopping is a problem for the future.
Speaker 7: So really you're saying, by the end of June, we're
Speaker 7: going to hit tank bottoms, so we're going to see
Speaker 7: a risk higher for crude.
Speaker 3: How much higher?
Speaker 1: I don't think we'll hit tank bottoms globally, to be clear,
Speaker 1: but I think there are definitely parts of the world.
Speaker 1: I mean, look, China's got stocks for months and months, right,
Speaker 1: China's not going to have problems, But there are definitely
Speaker 1: other parts of the world, be it Asia for crude.
Speaker 1: If you look at product stocks in the US, we
Speaker 1: are very quickly racing towards tank bottoms and parts of
Speaker 1: the US as well. So yes, there will be pockets
Speaker 1: where we hit tank bottoms. But when that happens, then
Speaker 1: physical markets, not financial markets. Again, that's a separate story.
Speaker 1: It's a little bit broken right now. Liquidity is really thin,
Speaker 1: and again all the tweets coming out doesn't give markets
Speaker 1: a lot of confidence to put on positions. But the
Speaker 1: physical market, you're likely to see prices go up to
Speaker 1: previous size. We've seen crew trade at one sixty one seventy,
Speaker 1: potentially even higher if you are genuinely stocking out in
Speaker 1: parts of the world.
Speaker 2: Stay with us. More Bloomberg surveillance coming up after this.
Speaker 2: Let's turn the page and stay on the financials. America's
Speaker 2: oldest bank and the first listing on the New York
Speaker 2: Stock Exchange getting a little bit of a revamp today.
Speaker 2: The Bank of New York is said to begin training
Speaker 2: under its new ticker b n Y. Joining us now
Speaker 2: is b nycfo McDonough Dermot. Good to see us, so
Speaker 2: welcome to the program.
Speaker 3: Good moran, thanks for having you.
Speaker 2: Guys have had a fantastic run, whether it's under BNY
Speaker 2: or b K. And I don't think this story has
Speaker 2: talked about enough. Alongside Robin, the best performing large bank
Speaker 2: in this country over his tenure. Now, at the very
Speaker 2: beginning of life at BNY, you were the architects of
Speaker 2: the treasury market, one of the early movers in this
Speaker 2: whole financial space. How different is this institution now compared
Speaker 2: to banklen.
Speaker 6: So look, first of all, thanks for having me. America's
Speaker 6: oldest bank, seventeen eighty four storage institution founded by Alexander Hamilton,
Speaker 6: who became the first Treasury secretary, first loan to the
Speaker 6: US government, And so we're very proud of our place
Speaker 6: in the financial market ecosystem, and that's evolved over the
Speaker 6: last two hundred and forty two years. When tickers first
Speaker 6: became a thing in nineteen sixty nine, B and Y
Speaker 6: wasn't available, so we went with BK for America's oldest bank.
Speaker 6: And now we have the opportunity to sync up how
Speaker 6: we present ourselves to clients and shareholders with the Tickers,
Speaker 6: So it's a great day for us.
Speaker 2: Hamilton was an incredibly intelligent man. I have my dads
Speaker 2: whether he would have imagined the position that we're all
Speaker 2: in right now, staring down the technology that is just
Speaker 2: on the horizon. How different a thing is going to
Speaker 2: be for your institution. And when you think about AI,
Speaker 2: imagine not thinking in the terms of low value human capital.
Speaker 2: Can you tell us in the way you are thinking
Speaker 2: about the income and technology we have.
Speaker 6: A very very different strategy on AI. Jonathan, I think
Speaker 6: you've been down to our headquarters. You'll have seen the
Speaker 6: ledgers from that time. You'll have seen our C Talk Center,
Speaker 6: which is quite a modern where we manage the markets.
Speaker 6: Twenty percent of the world's investable assets flowing through our
Speaker 6: pipes every day, so you know You've talked earlier about
Speaker 6: a lot of uncertainty in the world. The only thing
Speaker 6: that's constant in today's world is uncertainty, and so we've
Speaker 6: embraced at B and YAI as a superpower. It's part
Speaker 6: of our strategy, it's part of our transformation, and I
Speaker 6: think we've done a pretty good job at demystifying AI
Speaker 6: for our people. We say inside the walls of AI
Speaker 6: is for everyone, for everywhere, for everything, And we have
Speaker 6: two strands to it, Individual AI and enterprise AI, where
Speaker 6: we focus on how can you use AI as an
Speaker 6: individual to become more productive and to upscale yourself? And
Speaker 6: then as a firm, how do we use AI as
Speaker 6: a strategic superpower to make clients have better services, better goods.
Speaker 6: How do we serve how do we grow More importantly,
Speaker 6: how do we create capacity within the firm to grow?
Speaker 2: That's the word that interests me. Capacity. So when we
Speaker 2: talk about AI, and when I hear the C suite
Speaker 2: discuss it, they'll talk a lot about efficiency. We'll have
Speaker 2: a conversation about job losses. Maybe they'll spend some time
Speaker 2: on an improved product offering for customers. Well, spend a
Speaker 2: bit of time on there capacity is the interesting component
Speaker 2: of this. Does it create capacity and allow you to
Speaker 2: do things that maybe you might not have been able
Speaker 2: to do several years ago. And when you think about
Speaker 2: the spaces that opens up for sake, B and Y,
Speaker 2: what does it mean for you?
Speaker 6: I would say, in a word, AI for us means
Speaker 6: growth and opportunity and things that we thought we couldn't
Speaker 6: do before were now able to do and do at
Speaker 6: a faster pace. If you kind of go back to
Speaker 6: what I said in tree, undred and twenty percent of
Speaker 6: the world and ale assets flowing through our pipes, we
Speaker 6: set in ninety five percent of the US treasury market
Speaker 6: every day. That gives us a lot of data, and
Speaker 6: we'll be able to with AI to unlock that data,
Speaker 6: provide greater insights and greater information, be able to develop
Speaker 6: greater data products for our clients in the whole world
Speaker 6: of digital assets as well. I think we can power
Speaker 6: that with AI. So actually, AI for us we were
Speaker 6: quite optimistic in terms of our ability to grow and transform,
Speaker 6: as you've seen in our results over the last couple
Speaker 6: of years.
Speaker 5: What's the main note of growth? Given the fact that
Speaker 5: people used to think of B and Y as being
Speaker 5: sort of where money markets funds go and get parked,
Speaker 5: and it's the collateral bast And you talk about twenty
Speaker 5: percent of the world's assets. How do you grow profitability
Speaker 5: given the low margin aspect to those transactions.
Speaker 6: So I think in many ways, B and Y is
Speaker 6: a unique institution. We have several businesses, and we have
Speaker 6: strong competition in each of those business but when you
Speaker 6: add them together as a combined, we're pretty unique in
Speaker 6: what we can offer our clients as active So what
Speaker 6: we've done over the last couple of years to a
Speaker 6: good success is our ability to sell multi line of
Speaker 6: business to single clients and unlock the firm and de
Speaker 6: silo the firm and deliver a more holistic brand to
Speaker 6: our clients. And you've seen that in record sales revenue
Speaker 6: in Q one of this year, record revenues this year,
Speaker 6: and the tripling of the stock price over the last
Speaker 6: three years. So clients are noticing the transformation, our shareholders
Speaker 6: are noticing the transformation, and more importantly, our employees are
Speaker 6: feel empowered and energized by what we're doing at the institution.
Speaker 5: The total number of employees of B and Y peaked
Speaker 5: out in twenty twenty three close to fifty three thousand,
Speaker 5: and they've fallen considerably since then. It's been a pretty
Speaker 5: contractionary headcount story, even amid some of the growth in profitability.
Speaker 5: Do you expect it to continue shrinking because of some
Speaker 5: of the capabilities and efficiencies that you're putting out there.
Speaker 6: So I think the rational over the last couple of
Speaker 6: years we've largely dealt with through attrition in terms of
Speaker 6: each firm has a steady amount of attrition each year,
Speaker 6: so it's not been.
Speaker 3: Large scale workforce layoffs.
Speaker 6: It's like we've kind of figured out how to manage
Speaker 6: the workforce in a more strategic way, and it's been
Speaker 6: kind of taking back control of our expense bend and
Speaker 6: reducing duplicity in the firm, implementing our platforms operating models
Speaker 6: so we can deliver a more holistic set of products
Speaker 6: to our clients. And that's taken excess capacity out of
Speaker 6: the firm in a more strategic way, which I think
Speaker 6: our employees are very pleased to see.
Speaker 2: Well, we're seeing the performance strongest sales quarter I think
Speaker 2: in the firm's history. More recently, can we talk a
Speaker 2: big picture about financial markets and more broadly capitalism. We
Speaker 2: heard over the weekend, people get booed whenever they mentioned AI.
Speaker 2: I think that a lot of these institutions have totally
Speaker 2: lost control of the narrative right now. And I mentioned
Speaker 2: Standard Chanted and I'm sorry to keep beating up on
Speaker 2: that bank, but the language that it's used to describe
Speaker 2: this technology and the people that worked at the instanttion
Speaker 2: was deeply derogatory and for a lot of people at
Speaker 2: work in capital markets right now, they themselves might be
Speaker 2: losing faith in the future of this industry. How do
Speaker 2: we make sure that people stay engaged with capital markets?
Speaker 2: I know that you're engaged also with the Trump accounts
Speaker 2: as well. Is that a feature in this effort to
Speaker 2: keep this country engaged in capital markets at the time
Speaker 2: of deep skepticism over the future of capitalism and of technology.
Speaker 6: So look, we're very, very privileged as an institution to
Speaker 6: partner with the administration on Trump Accounts. We believe it's
Speaker 6: a very important public policy initiative. It's giving the kids
Speaker 6: of today a future in the stake of America tomorrow.
Speaker 3: And you know, it's a real privilege.
Speaker 6: We are a jesub We're a key part of the
Speaker 6: financial marketer ecosystem. We serve the government every single day,
Speaker 6: and we're very proud to be one of the first
Speaker 6: institutions to match the Trump Administration's initiative by doing it
Speaker 6: for our own employees. So financial literous, financial education, giving
Speaker 6: people a stake in the economy of tomorrow is really
Speaker 6: important and we're very proud to play our part in it.
Speaker 2: What other things can we do.
Speaker 6: We're very focused as well on home ownership. We launched
Speaker 6: an initiative this year where everybody who earns less than
Speaker 6: one hundred thousand dollars a year who wants to get
Speaker 6: their step on the property ladder, we give them assistance
Speaker 6: to do that. We do a lot of digital education
Speaker 6: about how to save and how to build for the future.
Speaker 6: And I think we're also very focused on wellness and
Speaker 6: health benefits to make sure we're a leader in that.
Speaker 6: So when people join B and Y, they not only
Speaker 6: join for a career, they join to be part of
Speaker 6: a family.
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