1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,960 --> 00:00:10,319 Speaker 2: What are you seeing right now? Are you seeing those 3 00:00:10,400 --> 00:00:13,640 Speaker 2: changes that people are talking about, that diversification away from 4 00:00:13,800 --> 00:00:14,400 Speaker 2: US assets? 5 00:00:14,400 --> 00:00:15,480 Speaker 1: Do you see that at all now? 6 00:00:15,920 --> 00:00:18,160 Speaker 3: We really don't see that in the data at this point. 7 00:00:18,239 --> 00:00:20,280 Speaker 3: I remember where we've come from, which is the US 8 00:00:20,280 --> 00:00:24,160 Speaker 3: has been really an incredibly strongly performing market, strong economy. 9 00:00:24,280 --> 00:00:27,120 Speaker 3: People who've been predicting the US to be some type 10 00:00:27,120 --> 00:00:29,920 Speaker 3: of decline from an economic point of view, recessions, we've 11 00:00:29,920 --> 00:00:31,479 Speaker 3: talked about that in the past two or three years. 12 00:00:31,520 --> 00:00:32,800 Speaker 1: None of that's actually happened. 13 00:00:32,800 --> 00:00:34,879 Speaker 3: And in fact, now I think you find and you've 14 00:00:34,880 --> 00:00:38,479 Speaker 3: heard this on your show, more optimism associated with what 15 00:00:38,600 --> 00:00:41,720 Speaker 3: the next year holds from an economic point of view, 16 00:00:41,800 --> 00:00:45,360 Speaker 3: GDP pretty solid, looking to potentially even expand in twenty 17 00:00:45,360 --> 00:00:48,280 Speaker 3: twenty six. You've got the stimulus checks coming the way 18 00:00:48,280 --> 00:00:51,159 Speaker 3: that they actually didn't adjust their withholding in order to 19 00:00:51,159 --> 00:00:53,560 Speaker 3: be able to encourage those stimulus checks. That all is 20 00:00:53,600 --> 00:00:55,120 Speaker 3: a pretty good setup. And you've got to be in 21 00:00:55,120 --> 00:00:58,320 Speaker 3: the preparedness business. We're all risk managers, and at the 22 00:00:58,400 --> 00:01:00,000 Speaker 3: end of the day, you've got to be resilient because 23 00:01:00,240 --> 00:01:02,760 Speaker 3: things can go wrong. Things can happen but I think 24 00:01:02,760 --> 00:01:06,639 Speaker 3: that's the setup, and so reallocating away from the US 25 00:01:06,640 --> 00:01:09,360 Speaker 3: in the face of that probably not the smartest choice 26 00:01:09,400 --> 00:01:09,759 Speaker 3: to make. 27 00:01:09,840 --> 00:01:12,360 Speaker 1: But you've got to be diversified. 28 00:01:11,760 --> 00:01:13,800 Speaker 3: So you cannot have the concentration you has been a 29 00:01:13,840 --> 00:01:16,160 Speaker 3: pretty concentrated bet over the past few years. 30 00:01:16,200 --> 00:01:18,240 Speaker 4: Although what's the consequence of that. I mean, there's a 31 00:01:18,240 --> 00:01:22,000 Speaker 4: difference between reallocating away from and diversifying. There is some 32 00:01:22,080 --> 00:01:24,680 Speaker 4: knock on effect, which is maybe some people are calling 33 00:01:24,720 --> 00:01:27,479 Speaker 4: cell America, other people are just saying diversifying and hedging 34 00:01:27,480 --> 00:01:29,760 Speaker 4: your bets. I mean, how much will that affect the 35 00:01:29,760 --> 00:01:31,720 Speaker 4: funding conditions of the United States. 36 00:01:31,880 --> 00:01:34,080 Speaker 3: Well, if diversification makes sense, one needs to have a 37 00:01:34,080 --> 00:01:37,360 Speaker 3: balanced portfolio. It's just good risk management. It's good investment 38 00:01:37,400 --> 00:01:39,520 Speaker 3: management to make sure that you've got exposure to the 39 00:01:39,600 --> 00:01:41,600 Speaker 3: various different opportunities that are out there. 40 00:01:41,920 --> 00:01:44,319 Speaker 1: But we certainly have seen and you know, look around. 41 00:01:44,360 --> 00:01:45,320 Speaker 1: We're a global firm. 42 00:01:45,400 --> 00:01:49,040 Speaker 3: We provide platforms and serve clients all across the world. 43 00:01:49,200 --> 00:01:50,680 Speaker 3: But when you look at the US and you just 44 00:01:50,720 --> 00:01:52,600 Speaker 3: look at the facts of the performance over the course 45 00:01:52,640 --> 00:01:54,680 Speaker 3: of the past decade, you look at all the innovation 46 00:01:54,760 --> 00:01:57,160 Speaker 3: that's been in the US, all of the value that's created. 47 00:01:57,400 --> 00:02:00,560 Speaker 3: AI is one example technology. More generally, it would have 48 00:02:00,560 --> 00:02:03,680 Speaker 3: been a mistake to not have participated in the US market, 49 00:02:03,760 --> 00:02:06,200 Speaker 3: and so a little bit of rebalancing, a little bit 50 00:02:06,200 --> 00:02:08,960 Speaker 3: of sort of thinking about how to make sure you've 51 00:02:09,000 --> 00:02:11,480 Speaker 3: got the right portfolio where there's equities, fixed income. We 52 00:02:11,520 --> 00:02:14,040 Speaker 3: talk about sixty forty. Oh gosh, it was dead. Now 53 00:02:14,040 --> 00:02:17,160 Speaker 3: it's back bonds. Okay, where do you want to be 54 00:02:17,200 --> 00:02:19,760 Speaker 3: exposed to in the bond market? You know, the US 55 00:02:19,760 --> 00:02:22,639 Speaker 3: bond market is still the most liquid market in the world, 56 00:02:22,800 --> 00:02:24,760 Speaker 3: and it is still the closest thing to a risk 57 00:02:24,800 --> 00:02:26,040 Speaker 3: free asset that there actually is. 58 00:02:26,160 --> 00:02:28,359 Speaker 4: How important is it that Senator Tom Tillis stays and 59 00:02:28,440 --> 00:02:30,200 Speaker 4: senate at least for the next three hundred and sixty 60 00:02:30,200 --> 00:02:33,120 Speaker 4: four days. He was on just a moment ago with 61 00:02:33,200 --> 00:02:35,200 Speaker 4: us and he was talking about how he's not going 62 00:02:35,240 --> 00:02:40,480 Speaker 4: to hold confirmation hearings until the DOJ suitor inquiry into 63 00:02:40,560 --> 00:02:44,560 Speaker 4: a FEDOJ Powell is lifted. I'm just wondering, from your perspective, 64 00:02:44,919 --> 00:02:48,160 Speaker 4: how important it is to see that type of noise 65 00:02:48,240 --> 00:02:50,560 Speaker 4: died down around the Federal Reserve for you to feel 66 00:02:50,600 --> 00:02:52,959 Speaker 4: confident that this truly is going to remain the status 67 00:02:53,000 --> 00:02:54,360 Speaker 4: quo going forward, right, Well. 68 00:02:54,240 --> 00:02:56,680 Speaker 3: The sentence is a great public servant, and I appreciate 69 00:02:56,720 --> 00:02:59,520 Speaker 3: all of his time serving in the US Senate. But 70 00:02:59,560 --> 00:03:01,360 Speaker 3: I think you hit the key point, which is, at 71 00:03:01,400 --> 00:03:03,440 Speaker 3: the end of the day, is not super helpful for 72 00:03:03,560 --> 00:03:06,480 Speaker 3: the long term objectives of the US, which are keep 73 00:03:06,600 --> 00:03:09,160 Speaker 3: interest rates on the low side, to be able to 74 00:03:09,160 --> 00:03:11,360 Speaker 3: make it easier for people to be able to borrow, 75 00:03:11,400 --> 00:03:13,040 Speaker 3: to be able to buy a home, to be able 76 00:03:13,040 --> 00:03:15,400 Speaker 3: to fund a car payment, for companies to be able 77 00:03:15,480 --> 00:03:16,920 Speaker 3: to borrow in order to be able to fund and 78 00:03:16,960 --> 00:03:17,960 Speaker 3: invest their businesses. 79 00:03:18,120 --> 00:03:20,280 Speaker 1: For all of that, we want low rates, so. 80 00:03:20,360 --> 00:03:23,120 Speaker 3: Creating and sort of shaking at the foundation of the 81 00:03:23,120 --> 00:03:26,320 Speaker 3: independence of monetary policy, that's not really in the interests 82 00:03:26,360 --> 00:03:28,680 Speaker 3: of keeping long term rates slow. 83 00:03:29,080 --> 00:03:31,000 Speaker 1: So I think it is helpful if that. 84 00:03:30,919 --> 00:03:32,680 Speaker 3: Dies down and we can get back to the business 85 00:03:32,840 --> 00:03:35,560 Speaker 3: of releasing the economy perform. 86 00:03:35,400 --> 00:03:37,440 Speaker 1: Counterproductive, which is the words you use in the past 87 00:03:37,440 --> 00:03:38,160 Speaker 1: when it comes to it. 88 00:03:38,240 --> 00:03:40,480 Speaker 4: Have you any engagement with the White House about this 89 00:03:40,640 --> 00:03:42,040 Speaker 4: issue given the concerns. 90 00:03:42,680 --> 00:03:45,880 Speaker 3: We're always talking to the administration making sure that we're 91 00:03:45,920 --> 00:03:48,240 Speaker 3: giving our point of view, and so that's of course 92 00:03:48,280 --> 00:03:50,000 Speaker 3: that's one of our jobs and one of my jobs 93 00:03:50,040 --> 00:03:52,280 Speaker 3: as a CEO is to be talking all across the 94 00:03:52,320 --> 00:03:56,200 Speaker 3: administration and in Congress and giving them our perspective. And 95 00:03:56,400 --> 00:03:58,600 Speaker 3: I do think it is in the interests and the 96 00:03:58,640 --> 00:04:01,200 Speaker 3: administration has been very clear they would like to see 97 00:04:01,480 --> 00:04:06,200 Speaker 3: long term interest rates lower because it benefits companies and individuals. 98 00:04:06,280 --> 00:04:09,080 Speaker 3: And so if that's the objective, then making sure that 99 00:04:09,080 --> 00:04:11,840 Speaker 3: we're keeping the Federal Reserve sort of a little bit 100 00:04:11,920 --> 00:04:14,720 Speaker 3: out of the news and not super controversial, I would 101 00:04:14,800 --> 00:04:17,520 Speaker 3: personally say, would be would be would be in further 102 00:04:17,560 --> 00:04:18,400 Speaker 3: into that objective. 103 00:04:18,520 --> 00:04:20,400 Speaker 2: It's certainly very much in the news at the moment. Robin, 104 00:04:20,440 --> 00:04:22,080 Speaker 2: Can we talk about your business? It has to be 105 00:04:22,120 --> 00:04:24,720 Speaker 2: a much changing in what direction are you leaning into? Well, 106 00:04:24,760 --> 00:04:27,240 Speaker 2: we've been reimagining the company, to be quite honest. You know, 107 00:04:27,240 --> 00:04:29,479 Speaker 2: we've got a fun history. We're two hundred and forty 108 00:04:29,600 --> 00:04:31,839 Speaker 2: years old. We were born right around the time of 109 00:04:31,880 --> 00:04:35,080 Speaker 2: the United States seventeen eighty four, oldest bank in the nation, 110 00:04:35,520 --> 00:04:37,080 Speaker 2: one of the oldest companies in New York. 111 00:04:37,080 --> 00:04:39,280 Speaker 3: It's that's a fun history. Now we've got to be 112 00:04:39,360 --> 00:04:41,720 Speaker 3: old because we've been innovating all along the way. We've 113 00:04:41,760 --> 00:04:45,520 Speaker 3: stayed very focused on customers and our culture is important. 114 00:04:45,680 --> 00:04:48,239 Speaker 1: That's how you get to be a long lived company. 115 00:04:48,440 --> 00:04:49,679 Speaker 1: So what have we been doing. 116 00:04:49,880 --> 00:04:52,440 Speaker 3: We've been taking stock of what we've actually got, our 117 00:04:52,480 --> 00:04:56,560 Speaker 3: real assets, our great businesses, and we've really been focused 118 00:04:56,560 --> 00:04:58,479 Speaker 3: on delivering them better for the client. Used to be 119 00:04:58,720 --> 00:05:02,280 Speaker 3: a bunch of pieces, kind of siloed, fragmented, and so 120 00:05:02,320 --> 00:05:04,719 Speaker 3: we set out three years ago to say, we're just 121 00:05:04,800 --> 00:05:07,040 Speaker 3: going to reimagine the company and we're going to pull 122 00:05:07,040 --> 00:05:09,920 Speaker 3: ourselves together. We're going to focus on our clients. We've 123 00:05:09,960 --> 00:05:12,640 Speaker 3: got these market leading businesses, what kind of a financial 124 00:05:12,640 --> 00:05:15,960 Speaker 3: services platforms company these days? And we're going to rally 125 00:05:16,040 --> 00:05:19,680 Speaker 3: round as a team. Very important that culture team to 126 00:05:19,720 --> 00:05:21,080 Speaker 3: be able to deliver for customers. 127 00:05:21,080 --> 00:05:22,840 Speaker 1: And you can see the results. So this was past 128 00:05:22,920 --> 00:05:23,719 Speaker 1: quarter for us. 129 00:05:23,760 --> 00:05:25,520 Speaker 3: Which comes to the sort of the end of that 130 00:05:25,600 --> 00:05:28,360 Speaker 3: first three year chapter. It was a quarter of records. 131 00:05:28,400 --> 00:05:29,960 Speaker 3: It was actually a year of records for us in 132 00:05:30,000 --> 00:05:33,799 Speaker 3: twenty twenty five. Record revenue, record pre tax income, huge 133 00:05:33,800 --> 00:05:36,200 Speaker 3: EPs growth, and the market's rewarded us for that. But 134 00:05:36,240 --> 00:05:39,120 Speaker 3: what they're really looking through and seeing is the fact 135 00:05:39,120 --> 00:05:41,600 Speaker 3: that we're delivering for our customers, and that's what it's 136 00:05:41,600 --> 00:05:42,039 Speaker 3: all about.