WEBVTT - Many Fed Officials See Need for Half-Point Rate Hikes 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Charle Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all partnessing the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.479 Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.480 --> 0:00:27.880 Eastern Time on the Bloomberg Radio or watch us on 0:00:27.920 --> 0:00:32.040 YouTube search Bloomberg glovel News. FED officials weighing shrieking the 0:00:32.040 --> 0:00:35.319 balance sheet by billion a month, UH, signaling it will 0:00:35.360 --> 0:00:39.280 reduce those massive bond holdings and further tightening credit across 0:00:39.320 --> 0:00:42.360 the economy. Also has Charlie mentioned many FED officials saying 0:00:42.400 --> 0:00:45.000 what or more fifty basis point hikes may be warranted. 0:00:45.280 --> 0:00:46.839 You know, it feels like the bond market knew this 0:00:46.880 --> 0:00:48.680 was coming, but it feels like the equity market did 0:00:48.760 --> 0:00:50.720 not not at all. If you look at the SMP 0:00:50.800 --> 0:00:54.480 five right now, sharply pairing losses still negative on the day, 0:00:54.520 --> 0:00:57.440 but direction travel definitely higher. Alright, so let's get to 0:00:57.480 --> 0:00:59.960 it with our team. We've got Kathleen Hayes, Global Economic 0:01:00.040 --> 0:01:02.960 and Policy Editor, Bloomberg News. She's in our Interactive Brokers studio, 0:01:03.040 --> 0:01:06.639 so too is Creedy Gupta, Markets Correspondent APT Bloomberg. Kathleen, 0:01:06.720 --> 0:01:09.800 let's get to you what jumps out? Well, first of all, 0:01:09.920 --> 0:01:13.080 let's start with the not so obvious but important line 0:01:13.120 --> 0:01:16.320 that FEDE officials say one or more fifty basis point 0:01:16.440 --> 0:01:20.520 hikes may be warranted. Are Bloomberg ride Up suggests that 0:01:20.560 --> 0:01:23.200 at the last meeting there were many, now many, I 0:01:23.200 --> 0:01:24.959 don't know if that's half, but that's a lot of 0:01:25.680 --> 0:01:28.160 mean Well, look, a few, you would mean honestly, a 0:01:28.200 --> 0:01:30.960 few would mean just a couple, maybe three, that's my guess. 0:01:32.000 --> 0:01:35.399 I think many and several several maybe more than half, 0:01:35.400 --> 0:01:38.480 but many is a substantial number. So there are people saying, no, 0:01:38.520 --> 0:01:41.360 I'm ready for fifty basis points. That really shouldn't excide 0:01:41.360 --> 0:01:43.840 to me a little because I know subsequently everyone's kind 0:01:43.840 --> 0:01:46.640 of freaking out about inflation. But that's important. So that means, okay, 0:01:46.640 --> 0:01:48.720 the May fifty basis point high, Beau's gotta be a 0:01:48.760 --> 0:01:52.920 done deal. Besides that, though the rolloff cap phase is 0:01:53.000 --> 0:01:56.120 going to take, is gonna phase in three months or 0:01:56.280 --> 0:01:59.960 modestly lower, modestly fewer. They want to get to nine 0:02:00.160 --> 0:02:03.760 five billion dollars a month pretty quickly at the past. 0:02:04.200 --> 0:02:07.000 Was that more aggressive than when everybody was expecting, Well, 0:02:08.040 --> 0:02:10.600 it's more aggresive than I expected. People were figuring they'd 0:02:10.639 --> 0:02:14.320 ultimately get to a hundred a month or a hundred 0:02:14.360 --> 0:02:15.919 and twenty a month. But to get there in three 0:02:15.960 --> 0:02:18.519 months or less, I think it's pretty aggressive. One more 0:02:18.639 --> 0:02:21.640 thing that Layo brainer the feddvice chair touched on yesterday 0:02:21.639 --> 0:02:23.200 in her prepared re marks not just an off the 0:02:23.200 --> 0:02:26.320 cuff answer to something Esther George's exclusive interview on bloe 0:02:26.360 --> 0:02:30.079 Brick Television touched on, once you start reducing the balance 0:02:30.080 --> 0:02:32.480 sheet and you're you're reducing stimulus, right, it's the opposite 0:02:32.480 --> 0:02:34.959 of buying bonds. And when you're raising rates and even 0:02:34.960 --> 0:02:37.280 you to fifty basis point us, you're moving fairly aggressively 0:02:37.280 --> 0:02:39.320 on rates. So how are you going to calibrate that? 0:02:39.720 --> 0:02:43.280 How much is a month's worth or three months worth 0:02:43.760 --> 0:02:46.120 of about three hundred that was about three hundred billion 0:02:46.280 --> 0:02:49.400 of that how how does that equate to rate hikes. 0:02:49.440 --> 0:02:51.079 That's the question they're going to have to work on, 0:02:51.320 --> 0:02:53.440 and that's what markets, Katie, have to figure out absolutely. 0:02:53.480 --> 0:02:55.240 And I mean, creaty come in here. How do you 0:02:55.320 --> 0:02:57.760 explain the market reaction that we're seeing, because it is 0:02:58.000 --> 0:03:00.720 you can see the SMP five hundred jumping right now. 0:03:00.880 --> 0:03:03.320 The Nastact too, that had been the big underperformer on 0:03:03.360 --> 0:03:07.760 the day, pairing losses quite significantly. Yeah. Well back up 0:03:07.800 --> 0:03:09.720 for just a second, and I want to follow what 0:03:10.000 --> 0:03:12.600 Kathleen said here on the billion, because we talked about 0:03:12.680 --> 0:03:14.960 what the expectation was. You said one twenty on the 0:03:15.000 --> 0:03:17.639 higher end. The lower end of that was eighty billion 0:03:17.760 --> 0:03:20.160 per month. So it's interesting that it came out at 0:03:20.200 --> 0:03:22.400 ninety five. From what I'm seeing here, the range was 0:03:22.480 --> 0:03:24.800 eight two hundred billion. People were thinking a hundred billion 0:03:24.800 --> 0:03:26.480 a month, as much as a hundred and twenty, like 0:03:26.480 --> 0:03:29.120 you said. So on the surface, it kind of seems 0:03:29.120 --> 0:03:31.440 like because it's less than perhaps that a hundred billion, 0:03:31.480 --> 0:03:34.280 not by much, but still um that perhaps could be 0:03:34.280 --> 0:03:36.600 a reason the stocks are moving higher. But still look, 0:03:36.600 --> 0:03:39.760 we're down um over one pent on the SMP five hundred, 0:03:39.800 --> 0:03:41.920 still still almost two percent on the nastack. So this 0:03:42.000 --> 0:03:44.360 does seem like a knee jerk reaction. Even as we're 0:03:44.480 --> 0:03:47.000 did we dip down for a second then bounce back. 0:03:47.320 --> 0:03:49.440 Even as we're speaking, we are now back to exactly 0:03:49.480 --> 0:03:51.320 where we were before the minutes came out, So you're 0:03:51.480 --> 0:03:53.600 once again see knee jerk reactions. It doesn't look like 0:03:53.600 --> 0:03:56.160 a ton has changed when it comes to exactly what 0:03:56.200 --> 0:03:58.040 people are thinking. One of the headlines that struck out 0:03:58.080 --> 0:04:00.160 to me though, was the fact that they said, head 0:04:00.160 --> 0:04:02.000 and I'm just gonna find this really quickly that if 0:04:02.200 --> 0:04:05.320 if it weren't for the war, more officials would talk 0:04:05.360 --> 0:04:07.480 about a fifty basis point march hike, And they made 0:04:07.520 --> 0:04:10.240 it very clear if not for the war. What's interesting 0:04:10.280 --> 0:04:13.160 here is that the conversation has very often been that 0:04:14.000 --> 0:04:16.960 perhaps the war would accelerate the rate hikes or make 0:04:17.000 --> 0:04:19.480 them bigger. So to see them say, well, actually, maybe 0:04:19.520 --> 0:04:21.000 this is kind of something that we should be a 0:04:21.000 --> 0:04:23.400 little bit cautious and maybe a little bit more dubs 0:04:23.520 --> 0:04:26.120 on instead of because of the war, that's that's new. Well, 0:04:26.160 --> 0:04:27.640 we know that it's going to hit everyone says it 0:04:27.680 --> 0:04:31.000 will hit Europe. Artist those economies they are a big, 0:04:31.400 --> 0:04:35.440 a big purchaser of certainly exports from China. China is 0:04:35.680 --> 0:04:38.560 droppling with these lockdowns that are spreading so quickly in Shanghai. 0:04:38.760 --> 0:04:41.840 The global forces that the FED has to watch are 0:04:41.839 --> 0:04:44.760 are something potentially that could temper. But it get the feeling. 0:04:44.800 --> 0:04:47.920 It's like Bill Dudley hit his piece today saying the 0:04:47.920 --> 0:04:50.880 FED is going to have to actually shock the stock market. 0:04:50.920 --> 0:04:53.040 They're really going to have to show an aggressive move 0:04:53.080 --> 0:04:56.440 to start changing expectations so they can get financial conditions 0:04:56.640 --> 0:04:59.839 to tighten. And that's that's part of the balancing act 0:04:59.920 --> 0:05:02.920 is well and also likely is that though that the 0:05:03.320 --> 0:05:07.160 Fed's appetite would be to actually cause that to happen, 0:05:07.200 --> 0:05:09.800 because you have seen calls for it. But among current 0:05:11.200 --> 0:05:13.880 I would say this, Jim Bullard, who is frequently a 0:05:13.960 --> 0:05:16.360 leader a thought leader the FED, said what two months 0:05:16.360 --> 0:05:18.560 ago he wanted to see a hundred basis points in rainhikes, 0:05:18.560 --> 0:05:22.080 but July one, okay, that would mean uh, in the 0:05:22.120 --> 0:05:25.159 next three meetings you get at least one fifty basis 0:05:25.200 --> 0:05:27.800 point hike. And then he said, let's pause and see 0:05:27.839 --> 0:05:30.480 what's happening. I wonder if that kind of thinking is 0:05:30.520 --> 0:05:32.240 what's going to come out of this maybeing. Okay, let's 0:05:32.279 --> 0:05:33.960 hit a target, you guys, we're gonna do fifty. We'll 0:05:33.960 --> 0:05:35.800 see if we know they're fifty, We'll see how the 0:05:35.839 --> 0:05:38.440 markets react. We'll see what happens to inflation. We'll see 0:05:38.480 --> 0:05:40.640 what the war is doing to the rest of you know, 0:05:40.640 --> 0:05:42.520 how that is all playing out, what it does to 0:05:42.560 --> 0:05:45.520 oil prices, et cetera, and then move forward. I'm so 0:05:45.520 --> 0:05:47.160 glad you mentioned Sorry if I can just jump in here, 0:05:47.400 --> 0:05:50.160 I'm so glad you mentioned that, the aggression of it, 0:05:50.200 --> 0:05:52.159 because we're also getting numbers on the bouncy once again, 0:05:52.200 --> 0:05:53.800 the other part of the equation like you were talking 0:05:53.839 --> 0:05:56.400 about and the llion, which we already talked about. It 0:05:56.440 --> 0:05:58.560 is a little more dubish than the market was expecting anyway, 0:05:58.560 --> 0:06:00.919 so that could explain the Knegric react. But if you 0:06:00.960 --> 0:06:02.800 compare this to the last time you have this kind 0:06:02.800 --> 0:06:05.600 of quantitative tightening, it took a year to ratchet it 0:06:05.680 --> 0:06:08.880 up to fifty billion dollars, this is completely different, and 0:06:08.920 --> 0:06:11.080 that seems like the push to get that and kind 0:06:11.080 --> 0:06:13.800 of shrink the balance sheet is faster, it's more aggressive. 0:06:13.839 --> 0:06:15.480 It's kind of this approach that you were mentioned with 0:06:15.520 --> 0:06:18.120 the rate hikes as well, does this support what Brainard 0:06:18.120 --> 0:06:21.960 said yesterday about will continue you tightening monetary policy methodically, 0:06:22.040 --> 0:06:25.839 like we've all been kind of obsessing over that word. Well, methodically, 0:06:26.000 --> 0:06:28.200 I would say means we're going to watch the data, 0:06:28.360 --> 0:06:30.760 We're going to respond to the data. Look, the Fed 0:06:30.880 --> 0:06:34.760 knows it waited too long. J. Powell has admitted that 0:06:35.120 --> 0:06:37.520 as much as admitted it publicly. We thought one thing. 0:06:37.839 --> 0:06:40.480 Look that their board, the staff board economist in Washington, 0:06:40.520 --> 0:06:42.840 figured it was going to get she was gonna move 0:06:42.839 --> 0:06:45.760 pretty back down pretty quickly. It didn't. So now they 0:06:45.800 --> 0:06:47.600 know they have to make up ground. Now they know 0:06:47.640 --> 0:06:50.359 they have to get worried about inflation expectations getting more embedded. 0:06:50.400 --> 0:06:53.800 So methodically I would take we're gonna move and we're 0:06:53.800 --> 0:06:55.680 going to We're made it pretty clear doors open to 0:06:55.680 --> 0:06:58.080 more aggressive hikes, faster balance sheet tighten. But one more 0:06:58.080 --> 0:06:59.760 thing to remember, this is not at all like the 0:07:00.080 --> 0:07:02.440 financial crisis. We had a huge falling off a cliff 0:07:02.480 --> 0:07:04.200 because we got hit by a pend. There's chaos and 0:07:04.240 --> 0:07:08.200 catastroph drawing back huge fiscal stimulus. You've got lots that 0:07:08.240 --> 0:07:10.120 you can remove. The question is, though I'm sure they're 0:07:10.200 --> 0:07:12.120 very sensitive, though they don't want to see this stock market. 0:07:12.160 --> 0:07:14.200 What's tricky is there's just so many variables out there 0:07:14.200 --> 0:07:16.000 for the Fed right now to deal with, including, as 0:07:16.000 --> 0:07:17.840 you pointed out, the war right that is out there, 0:07:17.880 --> 0:07:20.360 just like everybody kept saying that the pandemic, you know, 0:07:20.400 --> 0:07:22.120 like these are just factors they have to continue to 0:07:22.160 --> 0:07:24.880 deal with. Thank you both so much. Kathleen Hayes, Global 0:07:24.920 --> 0:07:27.080 Economics and Policy at a Bloomberg News and Pretty Group 0:07:27.120 --> 0:07:30.320 to Markets correspon Bloomberg. You're listening to Bloomberg Business Week 0:07:30.520 --> 0:07:34.440 with Carol Masser and Bloomberg Quick Takes Tim Stinovic on 0:07:34.640 --> 0:07:37.840 Bloomberg Radio, Carol master in Low Katie Gray felt, Tim 0:07:37.880 --> 0:07:41.000 is off today. So among our most read stories on 0:07:41.040 --> 0:07:43.800 the Bloomberg on this Wednesday is what about the x 0:07:43.880 --> 0:07:46.560 Russian oligarch who says President Putin sees the war with 0:07:46.600 --> 0:07:50.120 the West already underway. So let's get into it. Let's 0:07:50.160 --> 0:07:53.440 bring in Bloomberg TV Washington correspondent Amory Horton. She's with 0:07:53.560 --> 0:07:56.680 us from our Washington d C Bureau. So, Amory, who 0:07:56.720 --> 0:07:59.720 are we talking about? So we shut down with me 0:08:00.200 --> 0:08:03.920 Kronkowski And as you say, he's an exiled oligarch he 0:08:04.480 --> 0:08:07.400 ran Ukos Oil, which a lot of those assets now 0:08:07.480 --> 0:08:10.720 our present day roy Snaff, which is run by a 0:08:10.960 --> 0:08:14.480 very close confidant of President Putin, Igor set him and 0:08:14.520 --> 0:08:17.280 he kind of took Putin on. He crossed the line 0:08:17.720 --> 0:08:23.680 of um talking about politics, getting involved in politics, and 0:08:23.720 --> 0:08:27.240 then he was faced with charges on fraud and tax evasion. 0:08:27.320 --> 0:08:31.280 He was thrown in jail for a decade and he 0:08:31.360 --> 0:08:33.880 was able to leave Russia. But he's never been back 0:08:34.320 --> 0:08:37.600 and he basically lives in exile now. And so what 0:08:37.600 --> 0:08:41.440 what is his view of Putin's view of the response 0:08:41.720 --> 0:08:44.679 that the US has staged thus far, Because you talk 0:08:44.720 --> 0:08:47.160 about how in the story, how there there's a nuance 0:08:47.280 --> 0:08:50.760 there that, uh, it's probably not one that Putin is 0:08:50.800 --> 0:08:54.200 paying attention to. So Putin will not pay attention to 0:08:54.240 --> 0:08:59.240 the nuance of the war spreading into NATO territory members 0:08:59.280 --> 0:09:01.559 the way maybe the United States Wilks. You hear the 0:09:01.679 --> 0:09:06.720 US say and other U your western officials say, not 0:09:06.840 --> 0:09:10.000 a single inch of NATO territory will defend it. All. 0:09:10.559 --> 0:09:13.960 The issue is is that the way Putin perceives the war. 0:09:14.040 --> 0:09:17.920 According to Kodakovski, who has really studied the man and 0:09:17.960 --> 0:09:20.720 obviously has met and known him in his former life. 0:09:21.400 --> 0:09:25.319 Is that the US is failing to see that. From 0:09:25.320 --> 0:09:29.520 Putin's perspective, the war is already happening between the United 0:09:29.520 --> 0:09:34.040 States and Moscow, and between Western European capitals and Moscow, 0:09:34.400 --> 0:09:37.520 so they already view what is going on as an 0:09:37.559 --> 0:09:40.960 outright war just on Ukrainian soil. But Putin has said this, 0:09:41.080 --> 0:09:44.360 He said, sanctions, the training of Ukrainian military, the shipping 0:09:44.360 --> 0:09:48.400 of of US weapons and other weapons to Ukraine, he 0:09:48.520 --> 0:09:50.280 views all of that as a war. I would say, 0:09:50.280 --> 0:09:54.040 and Marina that many people would agree with Putin that 0:09:54.160 --> 0:09:56.880 we're kind of splitting hairs because there is a lot 0:09:56.920 --> 0:10:01.320 of support going to Ukraine right from the NATO lies um. 0:10:01.520 --> 0:10:04.520 But but it is important to kind of understand. We've 0:10:04.520 --> 0:10:07.600 all been trying to work on understanding Vladimir Putin's mindset, 0:10:07.720 --> 0:10:10.680 why he has done this and what his intentions are. So, 0:10:10.800 --> 0:10:13.560 if he perceives that he's already at war with the 0:10:13.600 --> 0:10:17.640 westmore broadly, what are the implications of that. Well, if 0:10:17.679 --> 0:10:19.640 he thinks he's already at war with the West, the 0:10:19.720 --> 0:10:22.800 implications are and what you get a sense of if 0:10:22.800 --> 0:10:25.760 you're traveling. I was recently in Poland, and Warsaw, and 0:10:26.000 --> 0:10:28.840 you get a sense of that anxiety and nervousness in 0:10:28.880 --> 0:10:32.400 these countries. A border Ukraine and the Baltic countries is 0:10:32.440 --> 0:10:37.000 that it could be them next. And that's really the 0:10:37.080 --> 0:10:40.080 concern on Eastern Europe. And you already hear some of 0:10:40.080 --> 0:10:44.280 the rhetoric of divisions between these countries, between say France 0:10:44.280 --> 0:10:48.000 and Germanys and the Baltic nations. They want much tougher 0:10:48.040 --> 0:10:51.920 sanctions on Russia immediately, but it's also because they're incredibly 0:10:51.920 --> 0:10:55.640 worried because their backyard. And what's interesting, I mean, obviously 0:10:55.679 --> 0:11:00.480 the US has unleashed many sanctions against Russia, really on 0:11:00.679 --> 0:11:04.079 Russian billionaires, but you go into this article that you 0:11:04.120 --> 0:11:06.600 know he doesn't think that is necessarily going to be 0:11:06.679 --> 0:11:10.439 effective at all when it comes to Putin. So the 0:11:10.480 --> 0:11:13.839 way Dakowski sees it, and he was an oligarch from 0:11:13.840 --> 0:11:19.600 the Yeltsin era, is one if Putin is not afraid 0:11:19.600 --> 0:11:22.960 of sanctions, sanctions do not scare him. And that too, 0:11:23.080 --> 0:11:28.480 While the idea of going after oligarchs is correct, the 0:11:28.600 --> 0:11:33.920 presumption that it would change Putin's calculus is wrong because 0:11:34.000 --> 0:11:37.120 when Karakosti talks about the fact that Russia is a 0:11:37.160 --> 0:11:42.520 full dictatorship, so he would know Oligarch is going to 0:11:42.559 --> 0:11:44.480 be able to go up to Putin and say you 0:11:44.559 --> 0:11:46.400 need to end this war. We saw none of them 0:11:46.440 --> 0:11:48.480 say they call for peace and they're against the war, 0:11:48.559 --> 0:11:52.360 but no one has criticized Putin directly. If so, they'll 0:11:52.400 --> 0:11:55.200 be incredibly scary for them as individuals. You know, it's 0:11:55.240 --> 0:11:57.080 interesting too, and I do think about a time like 0:11:57.120 --> 0:12:00.600 this U S official, State Department officials, National Secure officials 0:12:00.600 --> 0:12:02.960 and even European officials who they lean on to really 0:12:03.000 --> 0:12:05.560 kind of get inside Vladimir Putin's mind. I mean, it 0:12:05.559 --> 0:12:08.360 sounds like he has maybe talked to the government before 0:12:08.360 --> 0:12:11.480 and is doing it again. Is that fair to say? Yeah, Well, 0:12:11.480 --> 0:12:14.000 he's in Washington this week and a State Department official 0:12:14.160 --> 0:12:17.400 told Bloomberg that he met with US Under Secretary of 0:12:17.400 --> 0:12:20.440 State Victoria Newland last week on Friday, and then he 0:12:20.480 --> 0:12:23.600 met with officials at the National Security Council on Tuesday. 0:12:23.720 --> 0:12:27.000 So on top of speaking to you know, sink tankers 0:12:27.040 --> 0:12:29.920 and foreign policy experts of the Atlantic Council places like that, 0:12:30.200 --> 0:12:33.160 he's also briefing officials. And let me just ask you, 0:12:33.200 --> 0:12:35.319 because you're on the ground, as you said in Poland 0:12:35.520 --> 0:12:40.080 and surrounded you know by world leaders and just you know, 0:12:40.200 --> 0:12:43.319 could feel probably the mood, the tone, if you will. 0:12:43.440 --> 0:12:47.280 And I do wonder if how much conflict there is 0:12:47.400 --> 0:12:50.640 right now about you know, the fear of this becoming 0:12:51.320 --> 0:12:54.679 even bigger than it already is. There is a lot 0:12:54.720 --> 0:12:59.680 of fear in places like Poland and Eastern Europe. Um. 0:12:59.800 --> 0:13:03.079 And I think part of that fear is one because 0:13:03.520 --> 0:13:08.240 you have you know, any given day, UM missiles hitting Levie, 0:13:08.360 --> 0:13:11.040 which is very close to the Polish border. But then 0:13:11.120 --> 0:13:15.000 also you just look at Putin's rhetoric of late and 0:13:15.080 --> 0:13:17.680 his actions of the past, and his actions of the past, 0:13:17.760 --> 0:13:22.480 is that um, he has changed the map of Soviet 0:13:22.559 --> 0:13:25.280 the fall of the Soviet Union. He's changed that map 0:13:25.320 --> 0:13:30.360 four times. In Georgia, there's incursions in Moldova. He's been 0:13:30.480 --> 0:13:34.000 fighting Russian back forces have been fighting in eastern Ukraine 0:13:34.120 --> 0:13:37.040 for eight years, right, So someone even viewed this as 0:13:37.080 --> 0:13:40.840 an ongoing of that war, the annexed Crimean. So it 0:13:40.960 --> 0:13:43.520 is a concern for those that are close by. Yeah, unfortunately, 0:13:43.520 --> 0:13:47.319 we've seen certainly some of Putin's play playbook before. Hey 0:13:47.360 --> 0:13:49.520 and Marie, thank you so much. Emory Hordon She's part 0:13:49.559 --> 0:13:51.719 of a team who put out this story about this 0:13:51.880 --> 0:13:55.600 ex oligarch. She of course is watching correspondent at Bloomberg Television. 0:13:55.800 --> 0:13:59.760 This is Bloomberg Business Week with Carol Masser and Bloomberg 0:14:00.160 --> 0:14:03.920 takes Tim Stinovic on Bloomberg Radio. You know, we often 0:14:03.960 --> 0:14:05.880 talk about Miami a great place to go for fun 0:14:05.960 --> 0:14:07.760 in the sun. There's a lot going on, a lot 0:14:07.760 --> 0:14:10.640 of financial types are going on and moving there. And 0:14:10.679 --> 0:14:15.120 then there's what Bitcoino. What is that Bitcoino. It is 0:14:15.200 --> 0:14:17.679 a huge conference. It's sort of the industry one of 0:14:17.720 --> 0:14:22.440 the industry's marquee events. Crosshouse and reporter Vildonna hi Rich 0:14:22.800 --> 0:14:26.080 is there on the ground. She joins us. Now, vill Donna, 0:14:26.280 --> 0:14:28.080 I want to hear about the conference and what's going 0:14:28.120 --> 0:14:30.640 to happen, But first I want to hear about the 0:14:30.720 --> 0:14:33.360 Miami Bowl. Tell me about this statue. Why have I 0:14:33.400 --> 0:14:35.720 heard so much about it? They have a bullet to Yeah, 0:14:36.560 --> 0:14:39.040 that's that was a big reveal this morning. We had 0:14:39.440 --> 0:14:43.200 the Mayor of Miami, Francis fuire Is, unveiling this bull 0:14:43.280 --> 0:14:46.040 statue this morning and it drew quite a crowd and 0:14:46.120 --> 0:14:48.680 a lot of media attention as well, and it really 0:14:48.680 --> 0:14:52.720 resembles the Wall Streets charging bull statue that we see 0:14:52.760 --> 0:14:56.280 down in southern Manhattan, but it looks a little bit 0:14:56.280 --> 0:14:58.960 more like a transformer. It sort of has this like 0:14:59.120 --> 0:15:02.400 digital feel to it, and of course it has laser eyes, 0:15:02.600 --> 0:15:05.600 which in the crypto world connotates that somebody's really into 0:15:05.680 --> 0:15:09.000 cryptocurrencies and that you're a crypto fan. And the bull 0:15:09.040 --> 0:15:11.320 does have these blue laser eyes. I just walked by 0:15:11.320 --> 0:15:14.280 it a couple of minutes ago again and it's it's 0:15:14.320 --> 0:15:16.840 quite striking. And that was the big reveal this morning 0:15:16.880 --> 0:15:19.040 at the conference. For those watching on YouTube right now, 0:15:19.040 --> 0:15:21.239 sorry radio folks, you're just gonna to use your imagination. 0:15:21.280 --> 0:15:23.520 But if you're watching on YouTube, yeah, that's exactly. It 0:15:23.560 --> 0:15:27.000 does look like a very high tech you know Avenger's 0:15:27.160 --> 0:15:32.360 type with blue eyes, right, yes, yeah, So it has 0:15:32.400 --> 0:15:35.040 a sort of digital feel. It's almost like it's made 0:15:35.080 --> 0:15:39.920 up of tiny little like a black little chips or something. 0:15:39.960 --> 0:15:44.400 It has a shiny feel to it. Do people like 0:15:44.600 --> 0:15:46.640 the bull, I mean looking at it like, I don't know, 0:15:46.680 --> 0:15:49.880 I'm fighting the temptation to roll my eyes. But what 0:15:50.000 --> 0:15:53.200 is the reaction on the ground of this big reveal? Well, 0:15:53.240 --> 0:15:55.720 that was the interesting thing. Because it did draw a crowd, 0:15:55.760 --> 0:15:58.160 and we had the Mayor of Miami there, and we 0:15:58.160 --> 0:16:01.080 had a couple of other mayors from surrounding cities from 0:16:01.080 --> 0:16:05.680 Miami Dade over here also attending. And we had Trade Station, 0:16:05.760 --> 0:16:07.880 the CEO of Trade Station, which is the trading platform, 0:16:07.920 --> 0:16:11.560 also attending because they're doing the bull reveal in partnership 0:16:11.600 --> 0:16:15.360 with the City of Miami. And so the crowd was 0:16:15.400 --> 0:16:18.840 really excited. And that's the mood that's been prevalent sort 0:16:18.880 --> 0:16:21.920 of all day here where everybody's been really really excited 0:16:21.960 --> 0:16:25.080 to be here, been really happy to be together, and too, 0:16:25.720 --> 0:16:27.960 it sort of feels like it's the first big event 0:16:28.520 --> 0:16:30.600 post you know, the past couple of years. I mean, 0:16:30.640 --> 0:16:33.080 we had the conference here last year, but it wasn't 0:16:33.120 --> 0:16:36.400 as big, it wasn't as sort of open in the 0:16:36.400 --> 0:16:39.160 post COVID world as it is this year. And just 0:16:39.200 --> 0:16:42.040 to give you a sense of how a bulliant the 0:16:42.040 --> 0:16:44.520 mood has been, I did overhear somebody say that she 0:16:44.640 --> 0:16:47.360 was so excited about the bull that she was ready 0:16:47.360 --> 0:16:50.560 to cry. So that's my little tidbit. It's just to 0:16:50.560 --> 0:16:52.160 give you a send what the mood is like on 0:16:52.200 --> 0:16:53.960 the ground. Just got a couple of minutes here, so 0:16:54.040 --> 0:16:57.280 we know Florida long uh, you know, looking to be 0:16:57.480 --> 0:16:59.200 the Wall Street of the South, right, and that's why 0:16:59.240 --> 0:17:01.040 the bull is sign it again right like the bull 0:17:01.120 --> 0:17:05.120 that we have in downtown uh Manhattan. Here. What's interesting 0:17:05.240 --> 0:17:07.480 is what are you going to be looking for? Because 0:17:07.520 --> 0:17:11.399 we've talked a lot about Miami the financial aspect of it, 0:17:11.440 --> 0:17:15.440 but looking to really you know, put a flag down, 0:17:15.440 --> 0:17:18.640 if you will, when it comes to crypto. What's gonna 0:17:18.680 --> 0:17:20.440 be key? What are you gonna be looking at for 0:17:20.520 --> 0:17:22.840 at this event? I mean we've already heard from what 0:17:22.920 --> 0:17:26.920 Mike Novograds, Yeah, we did. We heard we heard from 0:17:27.040 --> 0:17:29.399 Mike Novograts. He was sort of giving his take on 0:17:29.680 --> 0:17:33.159 where he sees bitcoin and cryptocurrencies going right now. You know, 0:17:33.440 --> 0:17:35.600 you guys were just talking about the Federal Reserve and 0:17:35.640 --> 0:17:38.240 their tightening plants, and he was saying that as soon 0:17:38.280 --> 0:17:40.240 as the as soon as the economy slows done in 0:17:40.280 --> 0:17:43.400 the set actually stops hiking race, that he can see 0:17:43.480 --> 0:17:46.080 bitcoin taking off after that. So that was one of 0:17:46.119 --> 0:17:48.320 the bigger comments that we heard this morning, just in 0:17:48.440 --> 0:17:51.359 terms of projections for crypto prices, but then in terms 0:17:51.359 --> 0:17:54.040 of you know, Southern Florida. In the city of Miami, 0:17:54.240 --> 0:17:57.639 the mayor really has been very gung ho about creating 0:17:57.640 --> 0:18:00.520 a sort of crypto haven here and he was talking 0:18:00.520 --> 0:18:02.600 this morning. He gave a speech after the reveal of 0:18:02.600 --> 0:18:05.280 the bull statue where he was saying that he he 0:18:05.600 --> 0:18:08.640 called this plan Bitcoin America four and he was saying 0:18:08.640 --> 0:18:13.560 the country really needs to elect more pro bitcoin politicians 0:18:13.680 --> 0:18:17.199 and people to lead different cities across America where you 0:18:17.200 --> 0:18:19.760 know there he is hoping that more of them will 0:18:19.840 --> 0:18:23.000 be more pro crypto. So, uh, that's sort of the 0:18:23.040 --> 0:18:26.119 mood in in Miami, and especially from this mayor who 0:18:26.200 --> 0:18:28.639 has been so so into crypto and he takes his 0:18:28.720 --> 0:18:31.400 paychecks in crypto as well in bitcoin. Still, hey, Bil, 0:18:31.440 --> 0:18:33.600 Donna just got about twenty seconds. Is there any big 0:18:33.680 --> 0:18:35.919 voice that you're looking forward to hearing from very quickly? 0:18:36.800 --> 0:18:39.240 Oh my gosh, there's so many really big voices. Although 0:18:39.320 --> 0:18:41.600 the one big big news is that the President of 0:18:41.600 --> 0:18:45.679 Solvador is no longer coming. We heard that, uh just 0:18:45.720 --> 0:18:47.960 a little bit ago. I think he was announced via Twitter. 0:18:48.040 --> 0:18:49.960 And Salvator has been out there in front right yea 0:18:50.960 --> 0:18:54.680 for their bitcoin bond, their Volcano bonds. That's really fascinating. 0:18:54.680 --> 0:18:56.920 That he won't be there. All right, we'll listen. We'll 0:18:56.920 --> 0:18:59.359 definitely be leaning on you and getting updates on the 0:18:59.359 --> 0:19:01.720 Bloomberg in and on air. Um vill Donna, thank you 0:19:01.800 --> 0:19:04.160 so much. Vildnna Hi Reck, she's Bloomberg News cross asset 0:19:04.240 --> 0:19:08.000 reporter on the phone Miami. That's significant, right, yeah, definitely. 0:19:08.000 --> 0:19:09.960 I mean people are expecting a big reveal, so I 0:19:10.000 --> 0:19:12.000 guess we're not going to get it. You're listening to 0:19:12.119 --> 0:19:16.080 Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes 0:19:16.160 --> 0:19:20.119 Tim Stenovich on Bloomberg Radio. I will say this was 0:19:20.160 --> 0:19:22.320 the first thing I read in its entirety this morning. 0:19:22.320 --> 0:19:24.639 Sometimes you read in and your skimming this. I was 0:19:24.680 --> 0:19:27.760 just glued to the story from the get go. It 0:19:27.840 --> 0:19:29.760 is among the most read it's the Bloomberg Big Take, 0:19:29.840 --> 0:19:31.840 and it is the domestic cover story of the new 0:19:31.880 --> 0:19:34.600 issue of Bloomberg, which is out Bloomberg Business Week Magazine, 0:19:34.600 --> 0:19:37.440 I should say, out tomorrow, already online and on the Bloomberg. 0:19:37.640 --> 0:19:40.320 It's about the former financial elite and champion of diversity 0:19:40.320 --> 0:19:42.639 and inclusion who is now running for a seat a 0:19:42.720 --> 0:19:46.800 Senate seat in Pennsylvania. UM, I gotta say, Joel Love 0:19:46.840 --> 0:19:49.080 love this story. Joe Webber, editor Bloomberg business Week, is 0:19:49.080 --> 0:19:52.119 here in our interactive broker studio. Who wrote it? Josh Green, 0:19:52.320 --> 0:19:56.560 who is Bloomberg Business Week national correspondent. Uh, this story 0:19:56.840 --> 0:20:01.200 is about Give McCormick, who's uh not that long ago, 0:20:01.280 --> 0:20:04.359 is the CEO of Bridgewater. Obviously Bridgewater, the world's biggest 0:20:04.359 --> 0:20:08.960 hedge fund. Uh. Now, David McCormick is running for a 0:20:09.040 --> 0:20:13.880 Senate seat in Pennsylvania. It's a hot race because he's 0:20:13.880 --> 0:20:17.960