1 00:00:02,640 --> 00:00:05,360 Speaker 1: Welcome to the Bloomberg Penel Podcast. I'm Paul Sweene. You, 2 00:00:05,360 --> 00:00:07,680 Speaker 1: along with my co host Lisa Brahma Waits, each day 3 00:00:07,720 --> 00:00:10,240 Speaker 1: we bring you the most noteworthy and useful interviews for 4 00:00:10,280 --> 00:00:12,520 Speaker 1: you and your money. Whether at the grocery store or 5 00:00:12,560 --> 00:00:15,480 Speaker 1: the trading floor. Find a Bloomberg penl podcast on Apple 6 00:00:15,520 --> 00:00:17,959 Speaker 1: podcast or wherever you listen to podcasts, as well as 7 00:00:17,960 --> 00:00:21,880 Speaker 1: at Bloomberg dot Com. Him Alex steel in Relisa A. 8 00:00:21,920 --> 00:00:25,479 Speaker 1: Brahmowitz today, don't leave your powder dry. That was the 9 00:00:25,480 --> 00:00:27,560 Speaker 1: takeaway from the market from New York Fed President John 10 00:00:27,560 --> 00:00:30,760 Speaker 1: Williams speaking yesterday, and then things got really confusing. The 11 00:00:30,760 --> 00:00:33,440 Speaker 1: New York Fed walks it back. President Trump tweets at 12 00:00:33,440 --> 00:00:36,640 Speaker 1: the Fed's gotta stop with crazy quantitative tightening. Care to 13 00:00:36,640 --> 00:00:38,159 Speaker 1: help us make sense of it all? As Marvin Low, 14 00:00:38,320 --> 00:00:41,800 Speaker 1: global macro strategist First State Street, what did you literally 15 00:00:41,840 --> 00:00:44,360 Speaker 1: make of the last like ten hours from Fed talk? 16 00:00:44,440 --> 00:00:47,199 Speaker 1: You know what I think, Um, we can get a 17 00:00:47,200 --> 00:00:50,360 Speaker 1: sense of how challenged the communication processes for the FED. 18 00:00:50,680 --> 00:00:53,640 Speaker 1: That's the main thing. Um, They're they're cutting, They're cutting 19 00:00:53,640 --> 00:00:57,400 Speaker 1: twenty at least. UM. I think there's a moderate um 20 00:00:57,560 --> 00:00:59,320 Speaker 1: reason to think that it might be a little bit more. 21 00:00:59,360 --> 00:01:00,840 Speaker 1: But really the that they put it out there and 22 00:01:00,840 --> 00:01:02,440 Speaker 1: they didn't realize that it was going to have that 23 00:01:02,440 --> 00:01:04,080 Speaker 1: big give an impact on the market and need to 24 00:01:04,120 --> 00:01:07,480 Speaker 1: walk it back just shows that the communication process that 25 00:01:07,520 --> 00:01:09,880 Speaker 1: they've had since the beginning of the year late last 26 00:01:09,959 --> 00:01:13,640 Speaker 1: year is still an issue. So Marvin, again, as U 27 00:01:14,120 --> 00:01:16,960 Speaker 1: Alex was mentioning, President Trump is out with a number 28 00:01:16,959 --> 00:01:19,920 Speaker 1: of tweets this morning about the FED about their next actions. 29 00:01:20,440 --> 00:01:22,360 Speaker 1: Just give us a sense, how do you think the 30 00:01:22,400 --> 00:01:25,560 Speaker 1: FED deals with all this noise noise coming from the 31 00:01:25,560 --> 00:01:27,679 Speaker 1: President as it relates to their policy making. You know, 32 00:01:27,880 --> 00:01:30,679 Speaker 1: I mean Chairman Powell, you know, ultimately laid it out 33 00:01:30,680 --> 00:01:32,399 Speaker 1: when he went in front of when he went in 34 00:01:32,400 --> 00:01:35,360 Speaker 1: front of Congress. Um. You know, they can't ignore it, 35 00:01:35,400 --> 00:01:38,120 Speaker 1: but ultimately they have a mandate they report to Congress, 36 00:01:38,120 --> 00:01:40,120 Speaker 1: and I think that they do go back and lean 37 00:01:40,200 --> 00:01:43,400 Speaker 1: upon that. Having said that, the amount of pressure that 38 00:01:43,520 --> 00:01:46,520 Speaker 1: Chairman Powell must be facing is intense. So UM, I 39 00:01:46,520 --> 00:01:48,960 Speaker 1: wouldn't say that they can completely ignore it, but you know, 40 00:01:49,000 --> 00:01:52,120 Speaker 1: they do have, um the side of their mandate um 41 00:01:52,160 --> 00:01:54,760 Speaker 1: to help them guide through that process. I'm also really 42 00:01:54,800 --> 00:01:57,280 Speaker 1: interested in the interplay between the FED and the e 43 00:01:57,360 --> 00:02:00,240 Speaker 1: c B s were like officially and then unofficially. I 44 00:02:00,280 --> 00:02:02,880 Speaker 1: feel like it's who can get to the bottom first, 45 00:02:02,920 --> 00:02:05,280 Speaker 1: who can be more dubish, How can they influence their 46 00:02:05,280 --> 00:02:08,120 Speaker 1: currency the most? What kind of pressure is my own 47 00:02:08,160 --> 00:02:10,520 Speaker 1: joggy going to feel on Thursday? Yeah, so you know, 48 00:02:10,639 --> 00:02:14,880 Speaker 1: he's he's certainly um looking towards how he wants his legacy. 49 00:02:15,840 --> 00:02:19,160 Speaker 1: But that's what he is, and we're all jealous of 50 00:02:19,240 --> 00:02:21,840 Speaker 1: him for that. Um. I think the FED, you know, 51 00:02:21,880 --> 00:02:25,320 Speaker 1: certainly has more room to move in this process. That's 52 00:02:25,360 --> 00:02:27,560 Speaker 1: something that the market has been focused on, and the 53 00:02:27,639 --> 00:02:30,120 Speaker 1: ECB will be happy to wait for the FED to 54 00:02:30,200 --> 00:02:32,800 Speaker 1: make its first move and then all the other central 55 00:02:32,800 --> 00:02:34,959 Speaker 1: banks are gonna, you know, have the all clear to 56 00:02:35,200 --> 00:02:37,120 Speaker 1: kind of move in the same direction. So more of 57 00:02:37,120 --> 00:02:39,520 Speaker 1: an at State Street. We're talking about Europe here, but 58 00:02:39,520 --> 00:02:41,919 Speaker 1: as State Street as you think globally, you know, we 59 00:02:41,960 --> 00:02:46,760 Speaker 1: think about the economies in Europe being you know, slowing, dramatically, weaking, 60 00:02:46,919 --> 00:02:49,880 Speaker 1: even Germany's showing signs of weakness. How are you guys 61 00:02:49,919 --> 00:02:53,440 Speaker 1: thinking about allocating assets to Europe in general? Yeah, I mean, 62 00:02:53,520 --> 00:02:56,480 Speaker 1: you know, it's part of the asset allocation process. No, doubt. Um. 63 00:02:56,520 --> 00:02:58,440 Speaker 1: You know, it's a global world. You need a certain 64 00:02:58,919 --> 00:03:01,440 Speaker 1: amount of assets with in there. Um. I think it's 65 00:03:01,440 --> 00:03:03,120 Speaker 1: a function of how you want to move around the 66 00:03:03,160 --> 00:03:07,240 Speaker 1: benchmarks and the European challenges are out there, whether it's 67 00:03:07,280 --> 00:03:10,120 Speaker 1: from a growth perspective, whether it's from their banking system, 68 00:03:10,360 --> 00:03:12,480 Speaker 1: whether it's from the fact that the ECB just doesn't 69 00:03:12,520 --> 00:03:15,919 Speaker 1: have as many bullets. Ultimately, if we are going towards 70 00:03:15,960 --> 00:03:20,080 Speaker 1: this um more looser type of environment, and you know, 71 00:03:20,120 --> 00:03:22,800 Speaker 1: do you really want to put an excess amount of 72 00:03:22,880 --> 00:03:25,919 Speaker 1: your allocation there? And it's it's hard to see wanting 73 00:03:25,960 --> 00:03:28,760 Speaker 1: to um overweight it more than your benchmarks. So when 74 00:03:28,800 --> 00:03:30,440 Speaker 1: it comes to the bondom market, I mean, do you 75 00:03:30,440 --> 00:03:33,360 Speaker 1: feel like we've topped out, that we're at the peak 76 00:03:33,400 --> 00:03:37,160 Speaker 1: of where bond prices can be in Europe? Um? Well, um, 77 00:03:37,560 --> 00:03:40,600 Speaker 1: we're certainly getting there. UM. I think that the e 78 00:03:40,680 --> 00:03:42,920 Speaker 1: c B has already signaled that it's willing to go 79 00:03:43,240 --> 00:03:46,720 Speaker 1: further into negative yields, even um if it does cause 80 00:03:46,760 --> 00:03:48,960 Speaker 1: more problems for the banking system, But it can't go 81 00:03:49,080 --> 00:03:51,480 Speaker 1: that much further. Um. You know, the Fed's certainly has 82 00:03:51,560 --> 00:03:53,680 Speaker 1: much more room if we need to go there. I 83 00:03:53,680 --> 00:03:57,440 Speaker 1: wouldn't say that yields here can't go lower, but certainly 84 00:03:57,520 --> 00:04:00,000 Speaker 1: kind of the relative movement between US yields and really 85 00:04:00,160 --> 00:04:03,720 Speaker 1: the rest of the development market yields is a different 86 00:04:03,720 --> 00:04:06,320 Speaker 1: type of profile. So, Marvin, bringing it back to this 87 00:04:06,360 --> 00:04:08,360 Speaker 1: side of the pond, we're having starting to have some 88 00:04:08,560 --> 00:04:11,720 Speaker 1: more discussions or more heated discussions about the debt ceiling. 89 00:04:11,880 --> 00:04:13,560 Speaker 1: How do you think that plays out over the next 90 00:04:13,760 --> 00:04:16,560 Speaker 1: couple of weeks. I guess it's kind of the time frameer. Yeah, Um, 91 00:04:16,600 --> 00:04:18,560 Speaker 1: you know, it's certainly it's certainly good that they're talking 92 00:04:18,600 --> 00:04:22,040 Speaker 1: about it now. Um. I however, and probably a bit 93 00:04:22,080 --> 00:04:24,919 Speaker 1: skeptical that they can get anything done. So um, you know, 94 00:04:24,960 --> 00:04:27,839 Speaker 1: I would think that we're going to talk about September again, 95 00:04:27,839 --> 00:04:30,800 Speaker 1: and we'll talk about all of the measures that might 96 00:04:30,880 --> 00:04:33,120 Speaker 1: try and get something done before Congress leaves for the 97 00:04:33,160 --> 00:04:35,359 Speaker 1: summer vacation. You think the odds they're pretty low, you 98 00:04:35,360 --> 00:04:37,719 Speaker 1: know what. Um, the fact that they're talking about it 99 00:04:37,160 --> 00:04:41,279 Speaker 1: is positive. I'm just skeptical based on based on how 100 00:04:41,320 --> 00:04:44,480 Speaker 1: our government has kind of functioned. Um, if it does 101 00:04:44,520 --> 00:04:46,000 Speaker 1: get done, it's great. There would be a lot of 102 00:04:46,000 --> 00:04:49,560 Speaker 1: short term issuance because the checking account of the U 103 00:04:49,640 --> 00:04:51,359 Speaker 1: S Government has been drawn down as we've been in 104 00:04:51,400 --> 00:04:53,279 Speaker 1: this debt ceiling, but it winds up being more of 105 00:04:53,279 --> 00:04:55,200 Speaker 1: a short term kind of market type of issue. I 106 00:04:55,200 --> 00:04:58,119 Speaker 1: don't think it's ultimately disruptive. So when is markets actually 107 00:04:58,160 --> 00:05:01,800 Speaker 1: gonna care about the debt ceil um or or just 108 00:05:01,839 --> 00:05:03,599 Speaker 1: the amount of debt that like we're going to have 109 00:05:03,640 --> 00:05:06,520 Speaker 1: to issue to pay off deficit. Oh yeah, the two 110 00:05:06,520 --> 00:05:10,520 Speaker 1: different stories there. Certainly, UM the market. The market will 111 00:05:10,560 --> 00:05:13,400 Speaker 1: care UM if we get to September again and we 112 00:05:13,480 --> 00:05:15,640 Speaker 1: have all these dire warnings that they're not gonna be 113 00:05:15,640 --> 00:05:18,560 Speaker 1: able to pay their debt and the rating agencies get involved, UM, 114 00:05:18,600 --> 00:05:21,479 Speaker 1: I don't expect UM any you know, they'll they'll come 115 00:05:21,520 --> 00:05:24,240 Speaker 1: to they'll come to an agreement. UM. In terms of 116 00:05:24,400 --> 00:05:28,320 Speaker 1: longer term with yields where they are now, UM, I 117 00:05:28,360 --> 00:05:30,880 Speaker 1: think investors are willing to look past the fact that 118 00:05:30,920 --> 00:05:33,120 Speaker 1: we're going to have these record amounts of debt UM. 119 00:05:33,279 --> 00:05:36,560 Speaker 1: I'm not a m MT advocate, but at this point 120 00:05:36,600 --> 00:05:39,000 Speaker 1: there is demand for treasure yields and we've certainly seen 121 00:05:39,080 --> 00:05:41,279 Speaker 1: that UM as we kind of pushed towards these lower levels. 122 00:05:41,480 --> 00:05:44,280 Speaker 1: Where is the m MT argument or discussion these days? 123 00:05:44,320 --> 00:05:46,120 Speaker 1: Is it's I haven't heard about it recently. We have 124 00:05:46,160 --> 00:05:47,520 Speaker 1: to define it, like are we at the place that 125 00:05:47,600 --> 00:05:49,200 Speaker 1: we don't have to define it anymore? Because it's like 126 00:05:49,240 --> 00:05:54,440 Speaker 1: that acculate modern monetary theory. Basically, it says what and 127 00:05:54,800 --> 00:05:56,240 Speaker 1: what does it say? And where are we with it? 128 00:05:56,400 --> 00:05:59,400 Speaker 1: You know, effectively says that UM, governments can issue as 129 00:05:59,440 --> 00:06:01,440 Speaker 1: much as they and we don't really have to worry 130 00:06:01,480 --> 00:06:04,760 Speaker 1: about it, and you can run big deficits and finance 131 00:06:04,800 --> 00:06:06,640 Speaker 1: whatever you want, and there's always gonna be a buyer 132 00:06:06,720 --> 00:06:11,400 Speaker 1: fort um. You know. Certainly the increase in debts that 133 00:06:11,400 --> 00:06:13,040 Speaker 1: we've seen over the last couple of years makes one 134 00:06:13,080 --> 00:06:15,240 Speaker 1: believe that that might be true. But you Q, you 135 00:06:15,279 --> 00:06:17,840 Speaker 1: candid shoot debt forever. UM. You do crowd out, you 136 00:06:17,920 --> 00:06:21,479 Speaker 1: do create an environment where zombie companies are allowed to 137 00:06:21,520 --> 00:06:25,160 Speaker 1: go on longer. There are costs to the economy. UM. 138 00:06:25,200 --> 00:06:28,440 Speaker 1: When we get to the point UM where productivity growth 139 00:06:28,880 --> 00:06:32,000 Speaker 1: and overall growth is is gets to a new normal 140 00:06:32,040 --> 00:06:33,920 Speaker 1: and people worry about it, the amount of debt is 141 00:06:33,920 --> 00:06:35,600 Speaker 1: going to be part of that discussion. Yeah, I'm just 142 00:06:35,880 --> 00:06:37,760 Speaker 1: not buying it. I'm I'm in that camp that's just 143 00:06:37,800 --> 00:06:40,120 Speaker 1: not buying it. But we'll see Marvin low global macro 144 00:06:40,279 --> 00:06:42,880 Speaker 1: strategist State Street based in Boston, but joining us on 145 00:06:42,880 --> 00:06:46,760 Speaker 1: our Bloomberg Interactive Brooker Studio, talking all things FED in 146 00:06:46,839 --> 00:06:49,240 Speaker 1: all things economics. Of course, the FED meets at the 147 00:06:49,400 --> 00:06:52,560 Speaker 1: end of July. Markets certainly looking for at least a 148 00:06:52,640 --> 00:07:11,640 Speaker 1: twenty five basis point cut. This is Bloomberg. Well consumers 149 00:07:11,680 --> 00:07:16,160 Speaker 1: worldwide continued debate energy sources, including fossil fuels, nuclear and 150 00:07:16,240 --> 00:07:18,960 Speaker 1: sustainable sources such as wind and sun I think at 151 00:07:18,960 --> 00:07:21,840 Speaker 1: the latest insight on how nuclear power fits in We 152 00:07:21,920 --> 00:07:25,480 Speaker 1: turn to Seth Gray, President and CEO of Liebridge Corporation 153 00:07:25,520 --> 00:07:28,480 Speaker 1: based in Rest in Virginia. Seth thanks, thanks so much 154 00:07:28,520 --> 00:07:30,000 Speaker 1: for joining us. Just wonder if you could give us 155 00:07:30,040 --> 00:07:33,160 Speaker 1: an update on kind of the status of nuclear power 156 00:07:33,160 --> 00:07:36,720 Speaker 1: in the US right now. Well, Lucile, your power has 157 00:07:36,760 --> 00:07:40,720 Speaker 1: been kind of flat, hasn't been growing, hasn't been falling much, 158 00:07:40,760 --> 00:07:44,679 Speaker 1: has been producing about twenty percent of the nation's electricity 159 00:07:44,720 --> 00:07:48,080 Speaker 1: for some time, and now we're coming to something of 160 00:07:48,080 --> 00:07:51,640 Speaker 1: an inflection point. Are we going to keep renewing the 161 00:07:51,760 --> 00:07:55,800 Speaker 1: licenses of the old plants? Will we build more of those? 162 00:07:55,960 --> 00:07:59,600 Speaker 1: Are are we going to move forward to newer technologies 163 00:07:59,640 --> 00:08:03,360 Speaker 1: for few tools that could really upgrade those older reactors 164 00:08:03,440 --> 00:08:09,600 Speaker 1: and deploy newer, more advanced technologies. And we have plants 165 00:08:09,640 --> 00:08:12,480 Speaker 1: in this country out of four hundred fifty in the world. 166 00:08:13,040 --> 00:08:17,080 Speaker 1: China and Russia are moving aggressively to take the lead 167 00:08:17,200 --> 00:08:21,200 Speaker 1: around the world, and the US is now taking some 168 00:08:21,520 --> 00:08:25,040 Speaker 1: very serious steps in Congress, in the administration, and in 169 00:08:25,080 --> 00:08:29,120 Speaker 1: the companies to make sure that the US competes and 170 00:08:29,240 --> 00:08:32,880 Speaker 1: does very well in those international markets which feed through 171 00:08:32,920 --> 00:08:39,160 Speaker 1: supply chains to manufacturing all across America. So we definitely 172 00:08:39,200 --> 00:08:42,280 Speaker 1: had the Trump administration, UH in some ways want to 173 00:08:42,280 --> 00:08:45,160 Speaker 1: backstop colon nuclear because they want a reliable source of 174 00:08:45,240 --> 00:08:48,280 Speaker 1: energy that sort of stays in storage versus a solar 175 00:08:48,320 --> 00:08:51,760 Speaker 1: and wind um is that legitimate argument, like do we 176 00:08:51,800 --> 00:08:54,120 Speaker 1: really need to backstop nuclear or should we just let 177 00:08:54,120 --> 00:08:57,400 Speaker 1: market forces kind of work their way through the system. Well, 178 00:08:57,440 --> 00:09:00,640 Speaker 1: it's a very legitimate argument to give value you to it. 179 00:09:00,880 --> 00:09:03,280 Speaker 1: What you can do at a coal plant for a 180 00:09:03,280 --> 00:09:05,280 Speaker 1: period of months, and you could do it a nuclear 181 00:09:05,320 --> 00:09:08,080 Speaker 1: plant for a period of many years is have enough 182 00:09:08,080 --> 00:09:11,720 Speaker 1: fuel on the site to run that plant twenty four seven. 183 00:09:11,840 --> 00:09:15,480 Speaker 1: So nuclear reactors can run twenty four seven even if 184 00:09:15,520 --> 00:09:18,640 Speaker 1: trucks or trains can't deliver any fuel to the plant. 185 00:09:19,200 --> 00:09:22,760 Speaker 1: Of course, the renewables can't run when the sun isn't shining, 186 00:09:22,800 --> 00:09:26,000 Speaker 1: the wind isn't blowing, and need to be backed up 187 00:09:26,000 --> 00:09:31,080 Speaker 1: by natural gas, which UM relies on gas flowing through 188 00:09:31,080 --> 00:09:35,440 Speaker 1: the pipelines that could be cut off. So for unquestionable 189 00:09:35,520 --> 00:09:40,320 Speaker 1: electricity deliver seven, you really do need nuclear and or coal. 190 00:09:40,920 --> 00:09:43,880 Speaker 1: Nuclear for for a much longer period could provide it, 191 00:09:44,480 --> 00:09:47,760 Speaker 1: just as it powers our submarines for years. They could 192 00:09:47,800 --> 00:09:52,760 Speaker 1: stay underwater or aircraft carriers because they have nuclear reactors. 193 00:09:52,760 --> 00:09:56,000 Speaker 1: You know, try that with wind power. So so I 194 00:09:56,040 --> 00:09:59,760 Speaker 1: think it's a legitimate argument to give value to reliability 195 00:09:59,800 --> 00:10:04,640 Speaker 1: of electric grid with nuclear power. So, Seth, you mentioned 196 00:10:04,720 --> 00:10:07,800 Speaker 1: so newer technologies that need to come into the nuclear 197 00:10:07,840 --> 00:10:10,199 Speaker 1: power play. UM gives a sense of what some of 198 00:10:10,240 --> 00:10:14,320 Speaker 1: those technologies are maybe kind of where your company fits in, right. 199 00:10:14,440 --> 00:10:19,480 Speaker 1: So light Bridge is developing a new nuclear fuel that 200 00:10:19,520 --> 00:10:22,400 Speaker 1: will work in the existing reactors and new ones. The 201 00:10:22,480 --> 00:10:26,360 Speaker 1: project just recently received its first US Department of Energy 202 00:10:26,400 --> 00:10:29,559 Speaker 1: grant to support the project and help take it forward. 203 00:10:30,520 --> 00:10:33,880 Speaker 1: Our fuel technology is going to make the existing reactors 204 00:10:34,360 --> 00:10:38,080 Speaker 1: much more economical by increasing the power that comes out 205 00:10:38,080 --> 00:10:42,040 Speaker 1: of the plants, running the plants even longer between refuelings, 206 00:10:43,040 --> 00:10:47,160 Speaker 1: dramatically improved the safety, running about a thousand degrees celsius 207 00:10:47,200 --> 00:10:52,280 Speaker 1: about six degrees fahrenheit cooler than the fuel and current reactors, 208 00:10:52,760 --> 00:10:57,600 Speaker 1: and also dramatically enhanced proliferation resistance so that nothing could 209 00:10:57,600 --> 00:11:01,920 Speaker 1: ever be used in a weapons program. And also part 210 00:11:01,960 --> 00:11:05,680 Speaker 1: of the future of nuclear is these smaller reactors. The 211 00:11:05,760 --> 00:11:08,720 Speaker 1: lead there is a company called New Scale, and we're 212 00:11:08,720 --> 00:11:11,400 Speaker 1: starting to work with New Scale to bring our fuel 213 00:11:11,679 --> 00:11:14,320 Speaker 1: to their smaller reactors, which I think will really be 214 00:11:14,400 --> 00:11:17,640 Speaker 1: the lead in the next generation of nuclear reactors deployed 215 00:11:17,640 --> 00:11:19,840 Speaker 1: here and around the world. And a big part of 216 00:11:19,880 --> 00:11:22,200 Speaker 1: that is obviously a cost. Can you walk me through, 217 00:11:22,320 --> 00:11:24,960 Speaker 1: like how much it costs to say, build a new plant, 218 00:11:25,280 --> 00:11:28,720 Speaker 1: maintain your current plant, and then build the modular fleet. 219 00:11:28,760 --> 00:11:34,680 Speaker 1: Basically yeah, yeah, well, basically, the the costs of building 220 00:11:34,760 --> 00:11:38,080 Speaker 1: plants are very expensive when they're first of a kind, 221 00:11:38,760 --> 00:11:42,000 Speaker 1: and then after you build about six or nine of them, 222 00:11:42,480 --> 00:11:44,800 Speaker 1: you're at what some people call nth of a kind. 223 00:11:44,880 --> 00:11:47,760 Speaker 1: You know what they're going to cost going forward. So 224 00:11:48,080 --> 00:11:51,839 Speaker 1: one of the plants that was designed in the US 225 00:11:52,000 --> 00:11:55,160 Speaker 1: by the company that's now Westinghouse and is being deployed 226 00:11:55,200 --> 00:11:59,120 Speaker 1: around the world. The Koreans are working with Westinghouse deploying 227 00:11:59,120 --> 00:12:03,760 Speaker 1: in Abu Dhabi makes megalots of electricity. That's a ton 228 00:12:03,800 --> 00:12:07,800 Speaker 1: of power. Cost about five billion dollars to build. That's 229 00:12:07,800 --> 00:12:10,600 Speaker 1: a pretty solid number. You could you could build those 230 00:12:10,679 --> 00:12:14,040 Speaker 1: kind of reactors or other similar ones for about five 231 00:12:14,120 --> 00:12:18,959 Speaker 1: billion dollars on what you'd call levelized cost of electricity 232 00:12:19,120 --> 00:12:22,360 Speaker 1: out over the cost of the plant, that is cheaper 233 00:12:22,840 --> 00:12:28,560 Speaker 1: than um. Then Cole that that that works very well 234 00:12:28,559 --> 00:12:32,240 Speaker 1: over time. It's obviously a very big upfront cost, but 235 00:12:32,320 --> 00:12:35,120 Speaker 1: then your fuel cat costs for sixty years or even 236 00:12:35,200 --> 00:12:39,000 Speaker 1: eighty years are are very low. Seth You mentioned earlier 237 00:12:39,080 --> 00:12:41,160 Speaker 1: kind of the some of the new technologies that could 238 00:12:41,559 --> 00:12:45,199 Speaker 1: ensure or heighten non proliferation of some of this nuclear technology. 239 00:12:45,360 --> 00:12:47,800 Speaker 1: And we've got some obviously some issues with Iran right now. 240 00:12:47,840 --> 00:12:49,679 Speaker 1: Give us a sense of just kind of the global 241 00:12:49,720 --> 00:12:55,240 Speaker 1: deployment and the safety around deploying a nuclear technologies globally. Yeah, 242 00:12:55,280 --> 00:12:59,320 Speaker 1: So first on Iran, they've suspended some of their obligations 243 00:12:59,400 --> 00:13:02,560 Speaker 1: under the new Clear Deal there enriching uranium a little 244 00:13:02,559 --> 00:13:05,480 Speaker 1: bit higher than they're supposed to. They're making a little 245 00:13:05,520 --> 00:13:08,400 Speaker 1: bit more of it than they're supposed to. They could 246 00:13:08,480 --> 00:13:12,200 Speaker 1: easily step back and go back under those limits. They're 247 00:13:12,200 --> 00:13:15,720 Speaker 1: trying to get European countries to help them work around 248 00:13:15,920 --> 00:13:19,840 Speaker 1: US sanctions, which I think are being very effective on Iran. 249 00:13:20,679 --> 00:13:24,120 Speaker 1: So that's not really too great a warrior on Iran yet. 250 00:13:24,240 --> 00:13:27,080 Speaker 1: I think it's more of a negotiation dance of them 251 00:13:27,080 --> 00:13:32,680 Speaker 1: with Europeans. Nuclear reactors deployed by major companies under safe 252 00:13:32,720 --> 00:13:36,640 Speaker 1: licensing regimes like the US Nuclear Regulatory Commission are the 253 00:13:36,720 --> 00:13:41,240 Speaker 1: safest way of generating power in the world. Nobody has 254 00:13:41,280 --> 00:13:45,000 Speaker 1: ever died from radiation from anything in the reactor in 255 00:13:45,040 --> 00:13:48,319 Speaker 1: the history of the US power and nuclear power industry. 256 00:13:48,760 --> 00:13:52,760 Speaker 1: Even at Fukushima, as great an industrial disaster as that was, 257 00:13:53,440 --> 00:13:57,160 Speaker 1: nobody died from anything nuclear. People died from an earthquake, 258 00:13:57,200 --> 00:14:00,640 Speaker 1: people died from a tsunami, but actually not from anything 259 00:14:00,679 --> 00:14:04,760 Speaker 1: in the reactor. So it's um. It's a very safe 260 00:14:04,840 --> 00:14:10,640 Speaker 1: technology and um in terms of proliferation. The way it's 261 00:14:10,720 --> 00:14:15,040 Speaker 1: handled under the International Atomic Energy Agency oversight is very 262 00:14:15,080 --> 00:14:17,800 Speaker 1: well done, and with light bridges fuel it will be 263 00:14:17,880 --> 00:14:21,240 Speaker 1: even much more non proliferative understood, Seth, great, thank you 264 00:14:21,280 --> 00:14:23,240 Speaker 1: so much for joining us. Set as President CEO of 265 00:14:23,320 --> 00:14:27,440 Speaker 1: light Bridge Corporation, based in Reston, Virginia, bridgeting as we 266 00:14:27,480 --> 00:14:46,280 Speaker 1: think about how different technologies deployed globally. Well, Boeing is 267 00:14:46,360 --> 00:14:48,960 Speaker 1: back in the news. The company plans to report a 268 00:14:49,040 --> 00:14:52,240 Speaker 1: four point nine billion dollar accounting charge related to its 269 00:14:52,280 --> 00:14:55,320 Speaker 1: beleaguered seven thirty seven Max jetliner, and the company also 270 00:14:55,400 --> 00:14:57,560 Speaker 1: said that the plane would return to service in the 271 00:14:57,640 --> 00:15:01,120 Speaker 1: fourth quarter, easing fears that that's timetable could slip into 272 00:15:01,240 --> 00:15:03,720 Speaker 1: next year. To think a little deeper, we welcome our 273 00:15:03,760 --> 00:15:08,120 Speaker 1: next guest, George Ferguson. George is a senior analysts covering aerospace, defense, 274 00:15:08,200 --> 00:15:10,880 Speaker 1: and the airlines for Bloomberg Intelligence. He joins us on 275 00:15:10,920 --> 00:15:15,080 Speaker 1: the phone from Bloomberg Intelligence headquarters in Princeton, New Jersey. George, 276 00:15:15,120 --> 00:15:17,840 Speaker 1: thanks so much for joining us. The stocks up about, 277 00:15:18,160 --> 00:15:20,240 Speaker 1: you know, three point seven percent on the news years 278 00:15:20,240 --> 00:15:23,920 Speaker 1: like a shareholders like this. Yeah, I think I think 279 00:15:23,960 --> 00:15:27,600 Speaker 1: you're right, Paul. I think it starts to put a 280 00:15:27,600 --> 00:15:31,520 Speaker 1: a a cuff or a back limit on when we 281 00:15:31,520 --> 00:15:34,360 Speaker 1: think we see this airplane back in service, and it 282 00:15:34,400 --> 00:15:37,520 Speaker 1: gives investors a number that they can they can look 283 00:15:37,560 --> 00:15:40,200 Speaker 1: at for what the cost is going to be. I mean, 284 00:15:40,360 --> 00:15:43,960 Speaker 1: I think that they're probably being conservative. And the date 285 00:15:44,000 --> 00:15:46,720 Speaker 1: the airplane re enter service, I think Boeing doesn't want 286 00:15:46,720 --> 00:15:49,080 Speaker 1: that date to slip and at least the date that 287 00:15:49,120 --> 00:15:52,800 Speaker 1: they've provided, So my guess is they're probably fairly confident 288 00:15:52,880 --> 00:15:55,440 Speaker 1: the airplane gets back in service. That's in line I 289 00:15:55,480 --> 00:15:59,080 Speaker 1: think with expectations that were in the marketplace for late 290 00:15:59,160 --> 00:16:05,040 Speaker 1: three Q early for for Q entry to service. The 291 00:16:05,280 --> 00:16:08,560 Speaker 1: cost of the airplane being out of service was a 292 00:16:08,600 --> 00:16:12,640 Speaker 1: little bit higher than we expected at Bloomberg Intelligence. Um, 293 00:16:12,720 --> 00:16:14,960 Speaker 1: you know, I think the Bowing probably again put a 294 00:16:14,960 --> 00:16:18,400 Speaker 1: conservative number together here, so it's probably bigger than even 295 00:16:18,440 --> 00:16:22,440 Speaker 1: they expected. And they detail that they it's not going 296 00:16:22,480 --> 00:16:24,760 Speaker 1: to be all cash, so it's not gonna be all 297 00:16:24,800 --> 00:16:28,080 Speaker 1: four point nine billion in dollars. There'll be other types 298 00:16:28,120 --> 00:16:30,680 Speaker 1: of concessions they offer our customers that are will be 299 00:16:30,720 --> 00:16:32,480 Speaker 1: over an extended period of time, and so I think 300 00:16:32,480 --> 00:16:35,120 Speaker 1: now investors have a little more clarity around that, and 301 00:16:35,160 --> 00:16:37,760 Speaker 1: that's part of what you're seeing today. I feel so skeptical. 302 00:16:37,840 --> 00:16:39,480 Speaker 1: I gotta be honest with you. I feel like my 303 00:16:39,760 --> 00:16:41,560 Speaker 1: it's like, what do I want to win the lottery. 304 00:16:41,560 --> 00:16:43,600 Speaker 1: It's kind of the same thing. But let's pretend let's 305 00:16:43,600 --> 00:16:46,840 Speaker 1: pretend that this is correct, Bowing's estimates are correct. Things 306 00:16:46,840 --> 00:16:50,120 Speaker 1: get fixed in the fourth quarter. What's not accounted for 307 00:16:50,240 --> 00:16:54,960 Speaker 1: in the numbers, as in litigation or compensation for airlines, 308 00:16:55,040 --> 00:16:57,760 Speaker 1: et cetera. Yeah, so, I mean, as I read it, 309 00:16:57,760 --> 00:17:02,200 Speaker 1: it looks like the compensation for victims it wasn't in that. 310 00:17:02,520 --> 00:17:06,560 Speaker 1: And you know, we think that's a pretty knowable number. 311 00:17:06,720 --> 00:17:09,720 Speaker 1: It's uh, you know, we think there's maybe a billion 312 00:17:09,720 --> 00:17:14,360 Speaker 1: and a half worth of potential cost of victims um. 313 00:17:14,520 --> 00:17:16,680 Speaker 1: But you know, and and that kind of that kind 314 00:17:16,680 --> 00:17:19,400 Speaker 1: of litigation can drag on for years, and it's it's 315 00:17:19,400 --> 00:17:22,399 Speaker 1: a discussion about what the value of of people are, 316 00:17:22,440 --> 00:17:26,199 Speaker 1: which is a bit of a macab discussion. But I 317 00:17:26,240 --> 00:17:28,200 Speaker 1: don't think that there's I don't think there's a lot 318 00:17:28,280 --> 00:17:32,120 Speaker 1: more that's uh, that's overhanging because of this this grounding, 319 00:17:32,840 --> 00:17:36,280 Speaker 1: unless the grounding gets extended. So George, let's talk about 320 00:17:36,280 --> 00:17:40,000 Speaker 1: the seven max itself. Um, do you expect this the 321 00:17:40,080 --> 00:17:42,720 Speaker 1: next time you go to London Air Show of the 322 00:17:42,760 --> 00:17:44,520 Speaker 1: Paris Airshow? Do you think Boeing is going to have 323 00:17:44,560 --> 00:17:48,479 Speaker 1: success in the years ahead selling this aircraft. I do. 324 00:17:48,560 --> 00:17:52,800 Speaker 1: We've seen key customers that have come out supporting the airplane. Um. 325 00:17:52,840 --> 00:17:55,680 Speaker 1: I think the I A G Letter of intent at 326 00:17:55,680 --> 00:17:59,760 Speaker 1: Paris was was huge um and and the you know 327 00:17:59,760 --> 00:18:03,760 Speaker 1: p but like Willie Walsh, the I A G CEO 328 00:18:04,080 --> 00:18:06,560 Speaker 1: and UH and Ryan air CEO of come out and 329 00:18:06,680 --> 00:18:10,119 Speaker 1: endorse the airplane. That's a strong endorsement. UM So I 330 00:18:10,160 --> 00:18:14,040 Speaker 1: think that uh, this is this has definitely been a 331 00:18:14,080 --> 00:18:16,920 Speaker 1: difficult period for Boeing. But once they get this airplane 332 00:18:16,960 --> 00:18:19,480 Speaker 1: back in the air, provided they have no other problems 333 00:18:19,480 --> 00:18:21,760 Speaker 1: that I think, Look, they've really poured over this airplane. Now. 334 00:18:21,840 --> 00:18:25,119 Speaker 1: My guess is um that that this will fade within 335 00:18:25,560 --> 00:18:27,639 Speaker 1: you know, six months or so. What's going to be 336 00:18:27,680 --> 00:18:30,000 Speaker 1: the hold up? Is it going to be getting past 337 00:18:30,920 --> 00:18:34,000 Speaker 1: regulators compliance? Is it going to be the actual fix itself? 338 00:18:35,480 --> 00:18:39,760 Speaker 1: Um So, I don't think. I think the bigger challenge 339 00:18:39,760 --> 00:18:43,320 Speaker 1: here will be to sell it to global regulators. And 340 00:18:43,359 --> 00:18:47,520 Speaker 1: I think that the I A g Um sale was 341 00:18:47,600 --> 00:18:50,080 Speaker 1: part of that was part of that fix, and I 342 00:18:50,119 --> 00:18:52,359 Speaker 1: think it will be they'll look for airlines in the 343 00:18:52,400 --> 00:18:55,840 Speaker 1: different regions to apply pressure to regulators to at least 344 00:18:55,840 --> 00:18:59,560 Speaker 1: review the airplane so that it can re enter service. Um, 345 00:18:59,560 --> 00:19:01,359 Speaker 1: I think i AG probably got a pretty good price, 346 00:19:01,359 --> 00:19:03,080 Speaker 1: and so they'll be incentive to go to the European 347 00:19:03,119 --> 00:19:05,280 Speaker 1: regulator and say, hey, take a look to the airplane, 348 00:19:05,320 --> 00:19:07,080 Speaker 1: tell us what they've got to do to re ender service. 349 00:19:07,680 --> 00:19:10,359 Speaker 1: I really think that the FAA has poured over this 350 00:19:10,480 --> 00:19:14,600 Speaker 1: airplane now because they don't want their credibility, um, you know, 351 00:19:14,640 --> 00:19:18,159 Speaker 1: further damaged. And so I think given the intensity of 352 00:19:18,160 --> 00:19:20,360 Speaker 1: the f A is probably put into the into the review, 353 00:19:21,040 --> 00:19:23,280 Speaker 1: I think Boeing out to be in in good shape 354 00:19:23,320 --> 00:19:26,399 Speaker 1: to get it get it flying in the US and 355 00:19:26,480 --> 00:19:29,440 Speaker 1: in Europe pretty quickly thereafter, because I think the Europeans 356 00:19:29,520 --> 00:19:33,480 Speaker 1: also they don't want to separate this regulatory regime that 357 00:19:33,520 --> 00:19:36,600 Speaker 1: has sort of relied on each other's, you know, each 358 00:19:36,640 --> 00:19:40,760 Speaker 1: different jurisdictions regulator. I think everybody in the aviation industry 359 00:19:40,800 --> 00:19:43,080 Speaker 1: doesn't want to break that regime where you can rely 360 00:19:43,240 --> 00:19:46,080 Speaker 1: on regulators in the different regions, and so I think 361 00:19:46,080 --> 00:19:49,640 Speaker 1: the Europeans, without a real strong reason not to take 362 00:19:49,680 --> 00:19:53,440 Speaker 1: the airplane back, will will resist your delay. George Ferguson, 363 00:19:53,480 --> 00:19:55,960 Speaker 1: thank you so much. George has a senior aerospace, defense 364 00:19:55,960 --> 00:19:58,760 Speaker 1: and airlines analyst for Bloomberg Intelligence joining us on the 365 00:19:58,760 --> 00:20:01,199 Speaker 1: phone from Princeton, New Jerse, Z, will you get on 366 00:20:01,200 --> 00:20:03,280 Speaker 1: the seven. We're literally going to ask you that question. 367 00:20:03,440 --> 00:20:07,360 Speaker 1: The answer for me is yes, without I think so. 368 00:20:07,560 --> 00:20:09,280 Speaker 1: But like I think I could take a moment, I 369 00:20:09,280 --> 00:20:11,959 Speaker 1: don't think I take my kid on it interesting. I 370 00:20:12,000 --> 00:20:13,520 Speaker 1: just feel like, you know, by the ton of thing 371 00:20:13,560 --> 00:20:15,400 Speaker 1: gets in the air, it's gonna be the safest plane 372 00:20:15,440 --> 00:20:16,800 Speaker 1: in the air given what has had to deal with. 373 00:20:17,000 --> 00:20:20,040 Speaker 1: Let's head over now to Nathan Hagen Studios in Washington, 374 00:20:20,160 --> 00:20:23,000 Speaker 1: d C. To get a check on world and national headlines. 375 00:20:23,040 --> 00:20:40,040 Speaker 1: At Nathan Focus on Munis is brought to you by 376 00:20:40,200 --> 00:20:44,040 Speaker 1: Build America Mutual BAM Green Star Bonds finance projects that 377 00:20:44,119 --> 00:20:47,480 Speaker 1: protect and restore the environment with more renewable energy and 378 00:20:47,520 --> 00:20:51,760 Speaker 1: efficient transportation and buildings. Visit build America dot com slash 379 00:20:51,800 --> 00:20:56,520 Speaker 1: green Star, BAM Building America. When we talk municipal bonds, 380 00:20:56,520 --> 00:20:58,480 Speaker 1: I love to talk about the Puerto Rican market. It 381 00:20:58,520 --> 00:21:01,679 Speaker 1: continues to make news. Looks like Puerto Rico is seeking 382 00:21:01,720 --> 00:21:05,560 Speaker 1: to restructure about twenty seven billion dollars of obligations tied 383 00:21:05,600 --> 00:21:08,520 Speaker 1: to the central government and its mean utility. UH to 384 00:21:08,560 --> 00:21:10,399 Speaker 1: get the latest, we welcome a good friend Joe my 385 00:21:10,520 --> 00:21:14,800 Speaker 1: Sack Joe as editor for Bloomberg Bloomberg Brief for Bloomberg News. 386 00:21:14,800 --> 00:21:18,040 Speaker 1: He joins us here in our Bloomberg Interactive Brokers studio. Joe, 387 00:21:18,080 --> 00:21:21,320 Speaker 1: what is the latest on this ever or never ending 388 00:21:21,600 --> 00:21:25,479 Speaker 1: saga of the Puerto Rican debt situation? Riots in the 389 00:21:25,520 --> 00:21:30,399 Speaker 1: streets this week? It was riots the you know, the 390 00:21:30,440 --> 00:21:36,320 Speaker 1: restructuring we'll go on at some point. Uh, but right 391 00:21:36,359 --> 00:21:40,760 Speaker 1: now the population is restive. It's the only way to 392 00:21:40,880 --> 00:21:44,720 Speaker 1: describe it. And what are they protesting? They are protesting 393 00:21:44,760 --> 00:21:49,040 Speaker 1: almost nine hundred pages of chats that the governor was 394 00:21:49,080 --> 00:21:53,359 Speaker 1: having with his various aids and you know, sometimes pretty 395 00:21:53,359 --> 00:21:59,280 Speaker 1: salty stuff and uh and and in general protesting you know, 396 00:21:59,320 --> 00:22:02,640 Speaker 1: the incompa. It's of government on the island for years 397 00:22:03,080 --> 00:22:07,920 Speaker 1: and corruption. So you know, eventually it just blew up. 398 00:22:07,960 --> 00:22:11,359 Speaker 1: So who knows whether the governor will be able to 399 00:22:11,359 --> 00:22:15,200 Speaker 1: survive it. However, the restructuring goes on, and of course 400 00:22:15,280 --> 00:22:18,080 Speaker 1: this being the muni market, prices of Puerto Rico bonds 401 00:22:18,119 --> 00:22:20,640 Speaker 1: were unchanged. Well, I was gonna say so, I said 402 00:22:20,720 --> 00:22:23,000 Speaker 1: for Lisa, I don't know what two months ago on 403 00:22:23,040 --> 00:22:25,119 Speaker 1: a Friday, and Joe, you were here and we literally 404 00:22:25,160 --> 00:22:29,280 Speaker 1: had the exact same conversation, So like, what's what's a 405 00:22:29,359 --> 00:22:31,840 Speaker 1: time frame that he's looking at me? Funny when I 406 00:22:31,840 --> 00:22:37,360 Speaker 1: say that certainly, um, you know the the we're going 407 00:22:37,400 --> 00:22:42,919 Speaker 1: to have resolution of this certainly this year. So I 408 00:22:42,960 --> 00:22:46,280 Speaker 1: would you know, what is that another four or five months? 409 00:22:47,240 --> 00:22:50,680 Speaker 1: I know the the oversight board is going to put 410 00:22:50,960 --> 00:22:55,720 Speaker 1: their plan on the table, uh in about him, you know, 411 00:22:55,960 --> 00:22:59,200 Speaker 1: within the next several weeks. And there's also fifty billion 412 00:22:59,200 --> 00:23:01,720 Speaker 1: dollars or so that the government owns or owes for 413 00:23:01,840 --> 00:23:04,440 Speaker 1: retirees and things like that, So I don't I mean, 414 00:23:04,440 --> 00:23:07,280 Speaker 1: this is far from over as it relates to the 415 00:23:07,800 --> 00:23:10,960 Speaker 1: overall finances of Puerto Rico. This you're you're talking about 416 00:23:10,960 --> 00:23:13,399 Speaker 1: just some of these bonds that have been in default, right, 417 00:23:13,560 --> 00:23:16,679 Speaker 1: just the bonds, the the fifty billion dollar figure you 418 00:23:16,760 --> 00:23:19,919 Speaker 1: site is uh, you know what's owed to retirees and 419 00:23:19,960 --> 00:23:22,280 Speaker 1: Puerto ricoes into a good job with its pension fund 420 00:23:22,520 --> 00:23:25,280 Speaker 1: which is now at zero. So I know that Paul 421 00:23:25,359 --> 00:23:27,200 Speaker 1: loves Puerto Rico and he knows that I love pg 422 00:23:27,320 --> 00:23:29,719 Speaker 1: and E. So I want to talk about what's happening 423 00:23:29,920 --> 00:23:32,800 Speaker 1: with PGNY their bonds sort of where California is and 424 00:23:32,840 --> 00:23:36,879 Speaker 1: trying to restructure their dad have a liability fund. You know, 425 00:23:37,119 --> 00:23:43,320 Speaker 1: California past legislation to UH set up a fund for 426 00:23:43,600 --> 00:23:48,560 Speaker 1: the utilities to take advantage of in case there are 427 00:23:48,680 --> 00:23:53,040 Speaker 1: more raging wildfires and you know they have UH you know, 428 00:23:53,160 --> 00:23:56,080 Speaker 1: rather than having utilities go broke, UH, they would be 429 00:23:56,080 --> 00:24:00,520 Speaker 1: able to tap this fund. Um. But the legislation also 430 00:24:00,680 --> 00:24:05,439 Speaker 1: contains some uh impediments or it's it's not as perfect 431 00:24:05,520 --> 00:24:11,120 Speaker 1: as it might be to allow municipalities to buy parts 432 00:24:11,200 --> 00:24:15,680 Speaker 1: of the utilities, and especially p GEN San Francisco wanted 433 00:24:15,720 --> 00:24:18,159 Speaker 1: to buy part of it, and they said, hey, you 434 00:24:18,160 --> 00:24:20,560 Speaker 1: have to go back in and tweak this law for 435 00:24:20,680 --> 00:24:26,840 Speaker 1: US California. And it looks like the lawmakers there are 436 00:24:27,480 --> 00:24:30,920 Speaker 1: constructive on this. They say that might go back in 437 00:24:30,880 --> 00:24:33,719 Speaker 1: and do this. Alex have ever been to the consumer 438 00:24:33,720 --> 00:24:36,800 Speaker 1: electronics show in Las Vegas? Oh? I have have youtten 439 00:24:36,840 --> 00:24:40,080 Speaker 1: written the mono rail from the convention center to your hotel. 440 00:24:40,480 --> 00:24:41,879 Speaker 1: I don't remember. It was a long time ago when 441 00:24:41,880 --> 00:24:47,639 Speaker 1: I was miserable. Yes, that's for you exactly. This famed monorail, 442 00:24:47,840 --> 00:24:51,320 Speaker 1: which not that many people use, is the problem. That's 443 00:24:51,359 --> 00:24:53,720 Speaker 1: the problem for their monorail they had a little problem 444 00:24:53,720 --> 00:24:58,520 Speaker 1: with their municipal debt, didn't they? Joe, Oh wow, what 445 00:24:58,640 --> 00:25:01,640 Speaker 1: a story. This is obviously the story of the week. Response. 446 00:25:02,359 --> 00:25:06,000 Speaker 1: Um Mono Rail sold six d fifty million dollars in 447 00:25:06,119 --> 00:25:11,200 Speaker 1: bonds in two thousand and two. It was to acquire 448 00:25:11,240 --> 00:25:18,000 Speaker 1: the system and expanded, which they did and in uh 449 00:25:16,840 --> 00:25:21,640 Speaker 1: they chapter reserve funds out of the words went into 450 00:25:21,680 --> 00:25:29,000 Speaker 1: default and in they they went to bankruptcy. Twelve they 451 00:25:29,000 --> 00:25:33,119 Speaker 1: emerged from bankruptcy after wiping out nine percent of the 452 00:25:33,160 --> 00:25:37,000 Speaker 1: bond holders principle, so they wound up owing thirteen million 453 00:25:37,040 --> 00:25:40,520 Speaker 1: dollars and this week they paid off that thirteen million dollars, 454 00:25:40,600 --> 00:25:44,200 Speaker 1: which means they're ready to come back for the innicipal market. 455 00:25:44,480 --> 00:25:47,720 Speaker 1: Can you believe it? Alex, believe me. If you had 456 00:25:47,760 --> 00:25:50,280 Speaker 1: been on the monorail, you would have been cheered up 457 00:25:50,280 --> 00:25:52,600 Speaker 1: because it's nice on the motto else I don't know. 458 00:25:52,640 --> 00:25:54,840 Speaker 1: I had literally just flown in from Paris and then 459 00:25:54,880 --> 00:25:56,679 Speaker 1: too New York to Vegas, like I don't know what 460 00:25:56,760 --> 00:25:58,720 Speaker 1: time it was, but um, what's the demand going to 461 00:25:58,800 --> 00:26:00,920 Speaker 1: be like? And what is the FED have to kind 462 00:26:00,920 --> 00:26:04,280 Speaker 1: of say about it? Oh? Man? But you know what, 463 00:26:04,280 --> 00:26:10,400 Speaker 1: what is a lot of angry people who uh say 464 00:26:10,560 --> 00:26:14,520 Speaker 1: this is insane. This is a perfect example of how 465 00:26:14,720 --> 00:26:19,479 Speaker 1: frall the of the municipal market is. And uh in 466 00:26:19,520 --> 00:26:23,080 Speaker 1: other words, there'll be lots of demand. Well, I don't know, 467 00:26:23,119 --> 00:26:25,280 Speaker 1: I mean haven't been at ce s. The cab lines 468 00:26:25,359 --> 00:26:28,119 Speaker 1: are like forever. The monoreel is a good option. Why 469 00:26:28,119 --> 00:26:30,160 Speaker 1: does no one use it? I don't know. It's it's 470 00:26:30,200 --> 00:26:33,200 Speaker 1: it's a car culture. You know, it's a car culture. Well, see, 471 00:26:33,240 --> 00:26:36,480 Speaker 1: now this is part of the the the plan or 472 00:26:36,520 --> 00:26:40,400 Speaker 1: the the the mono rail would definitely like to extend 473 00:26:40,440 --> 00:26:44,480 Speaker 1: to the airport, but the cab industry is dead set 474 00:26:44,480 --> 00:26:48,600 Speaker 1: against it. So uh, you know, we'll see where the 475 00:26:49,280 --> 00:26:52,680 Speaker 1: where this expansion plan goes and if they're ever able 476 00:26:52,680 --> 00:26:54,639 Speaker 1: to at tap the market again. But there is a 477 00:26:54,680 --> 00:26:58,800 Speaker 1: small deal on the Bloomberg calendar for the deal for 478 00:26:58,920 --> 00:27:02,600 Speaker 1: the deal, Okay, we'll see Joe Mesac, Bloomberg editor in 479 00:27:02,840 --> 00:27:05,440 Speaker 1: for the Bloomberg Brief for the Municipal Markets covering all 480 00:27:05,440 --> 00:27:08,520 Speaker 1: things Muni's forest, joining us here in our Bloomberg Interactive 481 00:27:08,600 --> 00:27:10,720 Speaker 1: Broker Studio. I don't know, I'm going to stick with 482 00:27:10,720 --> 00:27:12,960 Speaker 1: the mono rail. I mean some sense, you're making good 483 00:27:13,000 --> 00:27:15,760 Speaker 1: sense of it, especially during CS because literally that the 484 00:27:16,040 --> 00:27:18,600 Speaker 1: lines for the calves at the hotel and they're just 485 00:27:18,680 --> 00:27:21,760 Speaker 1: for every they need that well, I think they just 486 00:27:21,880 --> 00:27:25,000 Speaker 1: like a slay you need. It's not something in Davos. 487 00:27:25,040 --> 00:27:27,240 Speaker 1: So we'll see, but we'll see if they can. In fact, 488 00:27:27,280 --> 00:27:29,399 Speaker 1: if Las Vegas Monroe can come back to the market, 489 00:27:29,400 --> 00:27:32,080 Speaker 1: will be on that story. This is Bloomberg. Thanks for 490 00:27:32,119 --> 00:27:34,800 Speaker 1: listening to the Bloomberg pen L podcast. You can subscribe 491 00:27:34,840 --> 00:27:37,600 Speaker 1: and listen to interviews at Apple Podcasts or whatever podcast 492 00:27:37,640 --> 00:27:41,200 Speaker 1: platform you prefer. Paul Sweeney, I'm on Twitter at pt Sweeney. 493 00:27:41,280 --> 00:27:43,480 Speaker 1: I'm Lisa abram Woyds. I'm on Twitter at Lisa A. 494 00:27:43,560 --> 00:27:46,160 Speaker 1: Bram Woit's one before the podcast. You can always catch 495 00:27:46,240 --> 00:27:48,040 Speaker 1: us worldwide. I'm Bloomberg Radio.