WEBVTT - Single Best Idea with Tom Keene: Lindsey Piegza & Todd Jablonski

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Single best idea, and we're going to hear from Doctor

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<v Speaker 2>Pigs with a huge quality Economics, and from Todd Jablonski

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<v Speaker 2>out with a Kraken in Seattle. But we actually came

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<v Speaker 2>up with single best idea today. We had on Gerard

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<v Speaker 2>Cassidy from RBC Capital Markets and he and I have

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<v Speaker 2>a tradition going back decades. We're talking JP Morgan City

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<v Speaker 2>Group and all that, and then at the end of

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<v Speaker 2>the interview, I always say Gerard small cap, small stock,

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<v Speaker 2>single best idea by Old Cell, and that's jargon for

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<v Speaker 2>Global Wall Street about when you're with an analyst, what

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<v Speaker 2>is their single best idea, it's always a buye. I mean,

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<v Speaker 2>they're not going to say sell this. That's not the

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<v Speaker 2>way the DNA goes. But his was Puerto Rico. I

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<v Speaker 2>was stunned Gerard Cassidy's saying, guess that's what Puerto Rico's

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<v Speaker 2>recovered lots of federal aid and his single best idea

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<v Speaker 2>was Banco popular. So there you are with how we

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<v Speaker 2>came up with the title the single best idea Today

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<v Speaker 2>was to take notes with Lindsay Pieg of Stiefel and

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<v Speaker 2>halfway through the interview, she floored Paul Sweeney and me

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<v Speaker 2>with a statement on the FED raising rates.

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<v Speaker 3>Right now, the FED is backing itself into the corner.

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<v Speaker 3>The FED should have risen rates, It should have raised

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<v Speaker 3>rates higher now that they see inflation reversing course for

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<v Speaker 3>three consecutive months since the start of the year, they

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<v Speaker 3>need to re engage raise rates to a sufficiently restrictive

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<v Speaker 3>level to get price pressures under control and we can

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<v Speaker 3>start to talk about a sustainable recovery. The longer they

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<v Speaker 3>slow play this, the more price pressures become entrenched into

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<v Speaker 3>the economy, and the more difficult it's going to be

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<v Speaker 3>to ever get us back to that two percent target.

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<v Speaker 3>I don't necessarily think our recession is necessary to get

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<v Speaker 3>price stability, but I do think that a much slower

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<v Speaker 3>growth rate would likely be the outcome, which is not

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<v Speaker 3>necessarily again, is something that we need to avoid at

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<v Speaker 3>all costs.

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<v Speaker 2>Lindsay pigs with Steifel and I really can't say enough.

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<v Speaker 2>It's not an outlier call. There are people with great

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<v Speaker 2>respect for the idea. What does the FED do when,

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<v Speaker 2>of course the fallback is to say they're not going

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<v Speaker 2>to cut rights, They're not going to raise rates. I mean,

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<v Speaker 2>that could be one outcome, But how do you frame

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<v Speaker 2>out the need to raise interest rates? I would suggest

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<v Speaker 2>the zeitgeist, if you will, is completely unprepared for that.

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<v Speaker 2>That was absolutely fascinating one of our great joys. And

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<v Speaker 2>of course this is the reach of Apple car play

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<v Speaker 2>and YouTube and all of Bloomberg Radio and the different

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<v Speaker 2>tune in is just one example. The reach of Bloomberg

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<v Speaker 2>Radio is it is across the nation. I didn't believe

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<v Speaker 2>this years ago when we started this, the idea that

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<v Speaker 2>someone at three or four am in California would actually

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<v Speaker 2>wake up to listen to this stuff.

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<v Speaker 1>I was like, yeah, right.

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<v Speaker 2>And then of course the international audience the Pacific Room

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<v Speaker 2>in Asia in the evening was a big surprise when

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<v Speaker 2>we were doing Bloomberg on the Economy, and so it's

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<v Speaker 2>always great to have people in from the left coast

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<v Speaker 2>in Seattle, which doesn't get enough attention culturally. Todd Jablonski

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<v Speaker 2>holds court out there with Principal Asset. He writes an

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<v Speaker 2>incredibly smart short note, it's out on the principal asset

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<v Speaker 2>Management's got a great cut on sixty forty investing right

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<v Speaker 2>now and in factor investing, but just simply with Microsoft

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<v Speaker 2>coming out the juggernaut at Seattle. We talked to him

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<v Speaker 2>about Washington State.

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<v Speaker 4>I would say about half of the spouses of my

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<v Speaker 4>coworkers in Seattle are employees of Microsoft, and I am

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<v Speaker 4>stunned at the different array of businesses that that firm

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<v Speaker 4>can get into. The cloud computing move I think was

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<v Speaker 4>a brilliant strategic design, and I've been really impressed in

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<v Speaker 4>everything from that to cloud computing. Like when it comes

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<v Speaker 4>to these tech giants, I think that the resourcing advantage

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<v Speaker 4>they have in competition is enormous. That leads to the

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<v Speaker 4>big getting bigger, and I think that we can continue

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<v Speaker 4>to see this trend Gorow. That's part of the reason

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<v Speaker 4>I'm overweight large cap stops in the US, and I

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<v Speaker 4>can see these giants continue to become much larger.

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<v Speaker 2>Different views. I'm thinking a couple of days ago, Patrick

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<v Speaker 2>Armstrong at Pleurimi and he's got the same outcome as

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<v Speaker 2>Todd Jablonski from London to Seattle, but they sort of

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<v Speaker 2>get there on different paths. Patrick armstronge of course looking

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<v Speaker 2>at financials, technology margins, growth rates, and I think there

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<v Speaker 2>was a spirit there to Todd Jablonski saying, look, this

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<v Speaker 2>is about American exceptionalism, it is about innovation and overused word.

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<v Speaker 2>Of course, we'll see that tomorrow. Today we've got meta

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<v Speaker 2>Facebook out. I'm sorry, it's not meta, it's Facebook. Get

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<v Speaker 2>over it. It's Google, not alphabet. But the answer is

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<v Speaker 2>we're going to get a lot of these really different stories,

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<v Speaker 2>each different on radio. Look for Tim and Carroll in

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<v Speaker 2>the afternoon. They'll have all that coverage on Apple car

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<v Speaker 2>Play and on YouTube across all of Bloomberg as well.

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<v Speaker 2>You get Apple out May second, May third, and then

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<v Speaker 2>you really want to hear what Mark German has to

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<v Speaker 2>say about it, and we'll get there in the first

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<v Speaker 2>week of May. We are on Apple car Play and

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<v Speaker 2>on Android play. This is building each and every day.

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<v Speaker 2>Just talk to Jumana Preteci, who will be driving our

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<v Speaker 2>Dubai coverage, our Middle East coverage from Morocco to Persia.

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<v Speaker 2>And Jumani made very clear that all of this digital

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<v Speaker 2>stuff is an incredible international audience, particularly across Africa. Good

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<v Speaker 2>morning and good day to all of you on the

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<v Speaker 2>African continent. And then on YouTube, you go in and

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<v Speaker 2>you search Bloomberg podcasts and you look for you don't

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<v Speaker 2>look for me, you look for Lisa Matteo, and we're

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<v Speaker 2>all there in a white chick lit and you click

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<v Speaker 2>on it and there we are. It's seven to ten

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<v Speaker 2>that we do this Wall Street time so again on Apple,

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<v Speaker 2>car play and YouTube. Two highlights from today. This is

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<v Speaker 2>single best idea.

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<v Speaker 1>Man nal Or.

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<v Speaker 4>Factors were include the Lamber