Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside
Speaker 1: my co host Matt Miller. Every business day we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets podcast
Speaker 1: called Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. Well, our next guest
Speaker 1: is I'm gonna call the All Big ten team. Undergraduate
Speaker 1: degree from University of Wisconsin and then an MBA from Indiana,
Speaker 1: Greg Han. He's the chief ce IO of Winthrop Capital Management. Greg,
Speaker 1: we kind of got a FED yesterday that kind of
Speaker 1: threw some I guess some uncertainty into this market. Is
Speaker 1: talking about maybe being a little bit more hawkish. What
Speaker 1: did you take away from yesterday's trading and then today's
Speaker 1: seemingly kind of rebound here on a risk on Look,
Speaker 1: what are your thoughts? Good old days? We're going back
Speaker 1: to the good old days because the Fed, the FED
Speaker 1: needs to get in front of inflation. So I think
Speaker 1: the posturing that we're hearing now is one that UM
Speaker 1: represents UM more of the committee, the committee's views, and
Speaker 1: there's a little bit more hawkish um in reminding investors
Speaker 1: that hey, we we don't have to move in twenty
Speaker 1: five basiness point increments UM. But there's been a reticence,
Speaker 1: especially with the labor challenges that we're going through last year,
Speaker 1: to actually message that two investors. We heard a very
Speaker 1: clear message from the Fed yesterday. We're going to take
Speaker 1: the steps necessary that we have to to uh to
Speaker 1: to move retired, to control inflation. In in Paul, They're
Speaker 1: gonna they're going to implode the economy to do it.
Speaker 1: That's basically what the messages that were. If we have
Speaker 1: to push the economy into a recession, we'll do it.
Speaker 1: That was the message we took away. We were just
Speaker 1: talking with our chief rate strategy, our Jersey, who's um,
Speaker 1: I'm pretty sure we will have a recession, he said.
Speaker 1: The question is just what kind of recession are we
Speaker 1: looking at? In three what's your out what's your outlook? Yeah, yeah,
Speaker 1: we've shifted. You know. It's funny because we plan. We
Speaker 1: we lay these big plans out at the beginning of
Speaker 1: the year, here's our investment themes. And sure enough we
Speaker 1: get to March and Wisconsin is not in the sweet
Speaker 1: sixteen and I got it, so I gotta change that.
Speaker 1: We've got to change our outlook on the economy. Uh,
Speaker 1: it's it's it's it's it's a whole brutal. But that's
Speaker 1: what That's what investing is. You just have to shift,
Speaker 1: you do the next right thing. You can't just stick
Speaker 1: to your plan and say, Okay, I gotta I'm gonna
Speaker 1: just die on the hill on this. We've we've got
Speaker 1: to be flexible at move um and we saw that
Speaker 1: with Amicron last year. Um it we are. We We
Speaker 1: thought that we'd see this resurgence and growth, but the
Speaker 1: variant really put muted any economic growth that we were expecting.
Speaker 1: We thought it would get pushed into this year, but
Speaker 1: the Russian invasion of Ukraine is going to provide serious
Speaker 1: dislocation for Europe. So we're going to see inflation, We're
Speaker 1: gonna see a slowdown in Europe. It's going to impact
Speaker 1: the United States. The real issue that we're trying to
Speaker 1: navigate now is what we've we've dealt with globalization for
Speaker 1: over three decades. We're seeing we think we're moving back
Speaker 1: to the period where we have trading block block countries,
Speaker 1: where you've got trading arrangements between block countries and the
Speaker 1: w t O is almost neutered if we if major
Speaker 1: countries have establish UM privileged trading relationships, so that that
Speaker 1: may be one of the consequences of the last four
Speaker 1: years of trade issues with China and now with with
Speaker 1: what we're doing with russ all right, So with that backdrop, Greg,
Speaker 1: what's an investor to do when this rising interest rate
Speaker 1: and inflation environment? Where do you go? Hold on? So
Speaker 1: this is this is this is because you have to
Speaker 1: just be patient and hold on. We've had We've got
Speaker 1: to remind it. Look, we've had three great years in
Speaker 1: the sp average returns an SP of over the last
Speaker 1: three years. We're giving some of it back cashes and
Speaker 1: an asset class. So we actually are allocated to cash
Speaker 1: just to just to be transitional. UM. These are near
Speaker 1: term issues. Yes, cash is not keeping up with inflation.
Speaker 1: We get that, we know that, but it's right now,
Speaker 1: it's not meant to it's it's there to preserve capital.
Speaker 1: At the end of the day, this is a stock
Speaker 1: pickers market, so we want to sure that we're in
Speaker 1: good companies that have good revenue drivers. And UM fixed
Speaker 1: income is getting a lot more interesting with two and
Speaker 1: you know twenty on the tenure that that starts to
Speaker 1: make a lot of sense. Now, um, whether they actually
Speaker 1: push whether the FET actually does push it higher. Yeah,
Speaker 1: I mean, what do you think about that? That? Uh?
Speaker 1: Right now we're looking at two thirty seven fifty two
Speaker 1: if you can believe it, just because it continues to soar,
Speaker 1: and that's true really across the curve. How high do
Speaker 1: we get on the tenure? So we I mean we
Speaker 1: we uh, we thought two would be a buffer just
Speaker 1: just to get us to this point. I we don't
Speaker 1: see it going over three percent. The short end is
Speaker 1: going to go higher. But I think that the posturing
Speaker 1: the economy will break. And then if if I don't
Speaker 1: think the Fed's really going to risk that, um there
Speaker 1: to really to We think the mistakes that the FED
Speaker 1: is going to do is they'll stop it doing just
Speaker 1: the next right thing, which was the pattern in the
Speaker 1: nineteen seventies with the Federal Reserve really postponed really Curtailian inflation.
Speaker 1: It was only going far enough that it had to
Speaker 1: to get control for that moment and it just kept
Speaker 1: building up in the system. We think the same thing
Speaker 1: is going to happen this time. Is the fed's not
Speaker 1: going to do enough because we will it will be
Speaker 1: politically unpopular. And who buys the tenure here? When you
Speaker 1: get more for buying threes, fives and sevens. You know
Speaker 1: who says I want to seven and at ten when
Speaker 1: you can get two four at seven. Doesn't make any sense? Well,
Speaker 1: the sad, the sad answer to that is that a
Speaker 1: lot of four oh one case and index funds are
Speaker 1: are our peg to the to the aggregate index, which
Speaker 1: is required to buy the tenure. So I knew before
Speaker 1: I asked the question, but I am sorry, no, no,
Speaker 1: I get it. Yeah, it just seems um if you
Speaker 1: break it down to the most elementary terms, it doesn't
Speaker 1: make a lot of sense. But yeah, all right, Greg,
Speaker 1: we appreciate you coming on here, Greg han Cee, I
Speaker 1: O Winthrop cap All Management giving us his thoughts on
Speaker 1: the market. And again, seems like a consensus is kind
Speaker 1: of building here for some type of recessionary environment. That's
Speaker 1: kind of new, I mean in Atlanta, Wilson, certainly since
Speaker 1: Jerome Powell went out with Constant Hunter yesterday and said,
Speaker 1: you know, the buck stops here. By the way, we
Speaker 1: should wish Gregg and Wisconsin best of luck for next year.
Speaker 1: We should yeah, okay, there's a basketball tournament every year. Okay, good, alright,
Speaker 1: the duke invitation when I call it. You know, I
Speaker 1: got my uh my last car that I had to
Speaker 1: sell because I was moving back here and you can't
Speaker 1: um import German cars from into the US. I made
Speaker 1: twenty five percent. I drove it for two years, I
Speaker 1: put thirty thousand miles on it, and I made profit.
Speaker 1: Nice when I sold it. He's good for you. It's
Speaker 1: the only time I've ever made money on a vehicle.
Speaker 1: Car trader. All right, let's see you can put some
Speaker 1: money in the stock market today. You do pretty well.
Speaker 1: The SMPS up one percent and as DAGs up. Robert Teeter,
Speaker 1: head of Investment Policy and Strategy Group of Silver Cress
Speaker 1: Asset Management, joins us. Robert, I'm not sure if I
Speaker 1: should go into the used car business or stick with
Speaker 1: my stock portfolio. What do you tell on your clients, Well,
Speaker 1: both have been pretty compelling over the over the past
Speaker 1: year or so. That's that on the on the grain
Speaker 1: spreader and the US autos are pretty interesting. But I
Speaker 1: do think some of the youth thouto sales are slowing
Speaker 1: down a little bit, so I'd say stick with stocks.
Speaker 1: This has been a pretty challenging environment. But we do
Speaker 1: think there's a strong undercurrent of earnings growth that's likely
Speaker 1: to lead the way towards gains over the next year
Speaker 1: or two. But is that I mean, with double digit
Speaker 1: inflation surely on the way um and a FED that
Speaker 1: is now ready to hike fifty basis points at multiple meetings,
Speaker 1: are you not concerned that this economic growth is going
Speaker 1: to slow to a halt. Well, I think that's that's
Speaker 1: been part of the challenge that markets have been working
Speaker 1: through here with this choppiness of late, which has been
Speaker 1: that there is a deceleration in growth. But I'm not
Speaker 1: in the camp of of recession. I do think there's
Speaker 1: strong underlying growth to come, partly driven by COVID recovery
Speaker 1: and jobs recovery, and so I do think that will continue.
Speaker 1: And while you will get a bit of the the
Speaker 1: energy cost tax on consumers that might slow the top
Speaker 1: line rate of growth a little bit, there is still
Speaker 1: strong earnings growth and companies have been navigating this economy
Speaker 1: very well to deliver on those earnings in the in
Speaker 1: the face of a lot of challenges in the past years.
Speaker 1: My concern is just this, Robert, that we have a
Speaker 1: federal reserve um. Now, I don't want to use the
Speaker 1: term hell bent, but I can't think of a less
Speaker 1: aggressive than would go for that one. Hell bent on
Speaker 1: slowing demand at the same time, we're about to see
Speaker 1: a bounce back in production and then inventories. Right, Yeah,
Speaker 1: I do think that's right. I think that some of
Speaker 1: the comments by pal I think have been incorporated or
Speaker 1: or evaluated in a in a fairly optimistic way, and
Speaker 1: that's what we're seeing in terms of the the green
Speaker 1: on the screen today because he has become and communicated
Speaker 1: and appropriately serious message against inflation. And so I think
Speaker 1: that that burst of activity that we had from from
Speaker 1: post COVID has led to a lot of the inflation.
Speaker 1: I think he's committed to fighting that now. But I
Speaker 1: do think that part of the outcome of him being
Speaker 1: a bit stronger is that you won't see inflation expectations
Speaker 1: in the outer years continue to rise, and that I
Speaker 1: think will be positive for investors and for valuations. So, Robert,
Speaker 1: you mentioned profitability earnings a couple of times. How concerned
Speaker 1: argue about inflation pressuring profit margins in corporate America. Yeah,
Speaker 1: I do think that's the that's the really important question,
Speaker 1: and I think in some areas it will pressure a bit. Um.
Speaker 1: We've been of the mind that this market has been
Speaker 1: one where you need to be very highly selective. Uh.
Speaker 1: It lends itself very well, we think to stock selection
Speaker 1: because different companies are are having different degrees of success
Speaker 1: in managing through those supply chain problems and labor cost issues.
Speaker 1: By and large, when we've looked at the Russell one thousand,
Speaker 1: overall margins have been very strong, improving somewhat, but it's
Speaker 1: not a uniform picture beneath the surface, and so we
Speaker 1: do think it's important to focus your opportunities on where
Speaker 1: companies are managing to the problems and delivering on earnings. Yeah.
Speaker 1: And like we've been seeing today, if they deal with
Speaker 1: the supply chain issues, well they are rewarded. Um. Who
Speaker 1: do you think is best positioned? Yeah, Well, we think
Speaker 1: that the technology sector, which is seen consistently strong earnings
Speaker 1: and actually seen estimates go up a bit at the
Speaker 1: beginning of this year. UM, is one area. I do
Speaker 1: think there are some segments in consumer, even though consumer
Speaker 1: earning estimates have come down a bit, there's still pretty
Speaker 1: strong consumer demand in some areas, and then I think
Speaker 1: a few of the cyclical areas might still have a
Speaker 1: few innings left of growth. So we think it's important
Speaker 1: to be diversified here and again really focus on which
Speaker 1: companies are getting the job done at the micro level.
Speaker 1: And I think that's really the theme here. Macro has
Speaker 1: been dominating, and we think it's going to shift back
Speaker 1: to micro micro. UM. When I think growth, I guess
Speaker 1: I've just been conditioned over the last ten or twenty
Speaker 1: years to think tech but cantect reform in a rising
Speaker 1: interest rate environment? I think it can. I think the
Speaker 1: classic wisdom, like you say, is rates higher is not
Speaker 1: necessarily good for multiples, and I think that's true. Um. However,
Speaker 1: we have to consider the starting point as well, so
Speaker 1: rates are still pretty low. Pre COVID we were around
Speaker 1: two percent. Two thousand eighteen, we were around three percent.
Speaker 1: We're in the mid twos now. We think that could
Speaker 1: drift a little bit higher. UM. I think multiples can
Speaker 1: handle that as long as we have this runway for
Speaker 1: growth in front of us. In terms of outlook for earnings,
Speaker 1: and again, earnings estimates have been going up in some
Speaker 1: some sectors and so we think that will help support
Speaker 1: multiple So also alright, so um, in terms of fixed income,
Speaker 1: what do you say just stay away? Well, we stay
Speaker 1: stay conservative. So not a lot of duration, so not
Speaker 1: a lot of interest rate risk. Be very careful on
Speaker 1: the credit selection side. It's not an environment to be
Speaker 1: scraping for a few extra basis points here and there.
Speaker 1: Use fixed income for what it's meant to be safe
Speaker 1: and secure a part of your portfolio that if you
Speaker 1: hold it to maturity, it delivers at par and helps
Speaker 1: protect you against some of the chop inequities. All Right, Robert,
Speaker 1: thank you so much for joining us. I really appreciate
Speaker 1: your perspective there, Robert Teeter, he's head of Investment Policy
Speaker 1: and Strategy Group at Silver Crest Asset Management. Kind of
Speaker 1: up and down Lexington Avenue here in midtown, a lot
Speaker 1: of empty stores, big stores, big box stores, smaller stores,
Speaker 1: and really gets you thinking about not just in New
Speaker 1: York City, but just kind of across the United States,
Speaker 1: how this commercial and industrial real estate markets gonna play
Speaker 1: out here. Fortunately, have an expert here you can walk
Speaker 1: us through with John Macy's, the CEO of I r
Speaker 1: G Industrial. John love to get your just your thirty
Speaker 1: thousand foot overview of how the last two years have
Speaker 1: impacted the commercial industrial real estate space here in the US. Sure,
Speaker 1: the last two years on the industrial space has been
Speaker 1: pretty spectacular. Rates have risen virtually every market in the country.
Speaker 1: Some of the major markets are up thirty even thirty
Speaker 1: most even through the smaller more minor markets, and industrial
Speaker 1: are up about So although we're seeing inflation affecting us,
Speaker 1: it's primarily in being able to rehab buildings that we
Speaker 1: bought or new construction where it's more expensive to build
Speaker 1: as well, it's taking longer. Particularly one issue we face
Speaker 1: is we get tenants that are ready to move into
Speaker 1: our buildings, but we can't deliver the building because some
Speaker 1: of our delays due to supply constraints are six months
Speaker 1: even nine months and everyone standing on the sidelines waiting
Speaker 1: for the materials to come in so we can fix
Speaker 1: them up. Otherwise, rental rates are up significantly, and there
Speaker 1: there still is a large difference between office space and
Speaker 1: industrial space. I mean, we could talk about office space
Speaker 1: for you know, extensively, but we're primarily in the industrial sector.
Speaker 1: So how do you differentiate those two. Yeah, office space
Speaker 1: are primarily for people who are service providers or other
Speaker 1: office people who actually go to an office and have
Speaker 1: office space primarily in either in the major cities or
Speaker 1: suburban office where industrial space is big, large spaces. Trucking, manufacturing, distribution,
Speaker 1: e commerce rates are usually a lot cheaper for industrial
Speaker 1: space than they are for office. There's fewer jobs, um,
Speaker 1: and it's more for storage or for manufacturing. Big difference
Speaker 1: between the two. John, is there industrial I mean, is
Speaker 1: there a geographical impact on your business? Are you seeing
Speaker 1: greater growth and everybody seems like everybody's going down to
Speaker 1: Texas and Florida? Is that what you're seeing demand for
Speaker 1: industrial space? Or is industrial space pretty much across the board?
Speaker 1: I'm going to say industrial spaces across the board. However,
Speaker 1: there are certain markets that are significantly stronger than others.
Speaker 1: And I'd have to say the greater Seattle area, San Francisco,
Speaker 1: Bay area, Lost Angeles, and the Inland Empire and then
Speaker 1: probably central Jersey right outside of New York or the
Speaker 1: Rights industrial And I see all those trucks there are
Speaker 1: millions of them, prime trucks, and these warehouses right along
Speaker 1: the must have a huge amount of pull there. Yeah,
Speaker 1: so it's interesting, John, I mean is this Does you
Speaker 1: know Amazon come to you and say I need a
Speaker 1: warehouse in Central Jersey? Is that how it works? Amazon
Speaker 1: does wanted to the things. They either buy the land
Speaker 1: and build their own or they go find a great
Speaker 1: location and they work a deal with a developer to
Speaker 1: build their their brand new, state of the art warehouse.
Speaker 1: And we've done both. We've sold some land to them
Speaker 1: that they've built on, and we've also um uh at
Speaker 1: least some of our land that we built for them.
Speaker 1: But most of what they want is the best, brand new,
Speaker 1: best location, the best, and they're willing to pay for it.
Speaker 1: But there's a lot of other people out there besides Amazon.
Speaker 1: There's a lot of on shoring. We're manufacturing is coming back,
Speaker 1: so a lot of our properties, particularly in the Midwest
Speaker 1: in Ohio, Indiana, Illinois and Michigan area. I mean, a
Speaker 1: lot of manufacturing going on that's been really really stable
Speaker 1: for us. So I and I wonder if you see,
Speaker 1: you know, in commercial in office space. Um I was
Speaker 1: reading this morning on the Bloomberg that it used to
Speaker 1: be Manhattan had eleven percent of all of the national
Speaker 1: office square footage, which is just massive. If you think
Speaker 1: about it. But that's not going to be the same
Speaker 1: going forward as the concern. You know, as people um
Speaker 1: gravitate more well away from the urban centers for for
Speaker 1: office work into the suburbs. Do you see that kind
Speaker 1: of shift with industrial space as well. No, not really.
Speaker 1: I mean what we are seeing though, is that there's
Speaker 1: a greater demand for the better locations. Before people were
Speaker 1: willing to drive an extra half hour hour outside of
Speaker 1: the major urban area. Uh. Consider during the truck expenses
Speaker 1: of driving the trucks and gas was not a big deal.
Speaker 1: Now it is a bigger deal. Therefore, they're willing to
Speaker 1: pay more money and higher rents in order to be
Speaker 1: closer to the urban inner areas. It's through what's commonly
Speaker 1: referred to his last mile. So, John, interest rates are
Speaker 1: going up, maybe pretty dramatically. How does that impact your business?
Speaker 1: It certainly does. Interest rates going up. I mean, our
Speaker 1: cost to capital is a critical element of what we do. Um,
Speaker 1: we know interest rates are going up. Matter of fact,
Speaker 1: the yield curve is flattened a bit, which is never
Speaker 1: great for the economy. But generally, if you have a
Speaker 1: good quality building, two percent three percent interest rates are
Speaker 1: traditionally very very low rates, we should be able to
Speaker 1: make it through even as as rates increase. But what
Speaker 1: also happens is as interest rates increase, cap rates often increase,
Speaker 1: and when a capitalization rate increases, the value of the
Speaker 1: property declines. So it's it's cyclical. Have been through about
Speaker 1: four or five major cycles. Hopefully we're not having another
Speaker 1: one right now. Interest rates is definitely a factor in
Speaker 1: our business. Now on the other side is inflation goes up,
Speaker 1: um cost the goods goes up, rents go up, so
Speaker 1: you just have to hope that the two balance out
Speaker 1: each other. Right, Hey, John, thanks so much for joining us.
Speaker 1: Really appreciate it. John May, CEO of I r G Industrial.
Speaker 1: I want to get to our next guest, Valerie Iakovenko Uh,
Speaker 1: founder and CEO of Drone you A based in Ukraine. Valerie,
Speaker 1: thank you so much for taking the time UH to
Speaker 1: call in and share some time with us talk to
Speaker 1: us about your company Drone you A, what is it
Speaker 1: and how has your company been impacted by the last
Speaker 1: month with the invasion of Ukraine by Russia. Let's are
Speaker 1: to be with you today. Um and actually is a
Speaker 1: drowning company. Is the technological company, the robotics company that
Speaker 1: was supposed to work only in industrial spheres, using drones
Speaker 1: and robots to help our manufacturing possibilities, to be smarter,
Speaker 1: more efficient, to grow more food on Ukrainian fields, to
Speaker 1: get better yields, to provide more safer work experience for
Speaker 1: any industrial employee. But when the work started, almost everything changed.
Speaker 1: Before it was we were like collaborating with officials with
Speaker 1: Minister of Defense, with different police, UH departments, etcetera. It
Speaker 1: was a part of our business. But right now it's
Speaker 1: multiplied several I think, I think hundreds times since all
Speaker 1: our tension. And this is about not only us, this
Speaker 1: is about every Ukrainian person. So everybody may be clear.
Speaker 1: You make drones that were typically mostly recreational or industrial.
Speaker 1: You were working a little bit with m police, but
Speaker 1: none military, Harry, and now you've been drawn in to
Speaker 1: the fight to try and beef up Ukrainian intelligence. This
Speaker 1: is correct, and this is about all all companies and
Speaker 1: all specialists on Ukrainian market. UH. Since we need intelligence,
Speaker 1: see needs, since we need to find enemy troops, everybody
Speaker 1: is joining forces to help with intel, to file with
Speaker 1: to help with surveillance, finding enemy troops, find an enemy tanks,
Speaker 1: finding there were sons of Suborteurs group all around Ukraine.
Speaker 1: This is not about only frontline in Ukraine or some
Speaker 1: special regions. This is about everywhere. Drones are right now
Speaker 1: as working as a tool uh to provide intelligence to
Speaker 1: our Minister of Defense and to defend our country. So
Speaker 1: Valley give us a sense of the drone force in
Speaker 1: Ukraine right now. Does Ukraine have enough drones or does
Speaker 1: it need more? And where would you get them? First
Speaker 1: of all, you have to understand that there are two
Speaker 1: types of drones that are being used right now in Ukraine.
Speaker 1: The first one is small hobby like looking like drones
Speaker 1: that you can purchase actually in almost every r sistore
Speaker 1: and they are useful. You're useful to provide information for
Speaker 1: the military and defensive military operations in Ukraine. But and
Speaker 1: there are a lot of them, like thousands of drones
Speaker 1: are working right now for the Ministry of Defense purposes
Speaker 1: to provide intelligence. And the second part of drones is
Speaker 1: like military drones that was designed to provide strikes from
Speaker 1: the sky not only ice, but also some kind of
Speaker 1: power to make an action against Russian military troops that
Speaker 1: are invading Russia. Ukrainian peaceful cities. So basically the second
Speaker 1: part is mostly well well known by barracts. The Turkish
Speaker 1: drones that are being supplied to Ukraine, and there are
Speaker 1: a lot of them, but there are not enough to
Speaker 1: cover all necessity of Ukrainian defense. We need more drones,
Speaker 1: all kinds of drones and surveillance and hope be like, yes,
Speaker 1: we need them. We are in lack of termal imagery
Speaker 1: cameras and termal imagery drones to help our defenders and
Speaker 1: during the night. But of course we need more intelligent
Speaker 1: weapons in Ukraine to provide defense and strikes to the
Speaker 1: troops that are stayed here or are taking us. Basically,
Speaker 1: how value, how is the war going right now? How
Speaker 1: is the defense effort shaping up? How have the Russian aggressors?
Speaker 1: How far have they progressed? Firs fall uh all, you
Speaker 1: know that all ideas of Russian from Russian side was
Speaker 1: to make a blitz creek to conquer Ukraine in just
Speaker 1: days for several hours. But there is almost the month
Speaker 1: during start after the start of the war and Ukrainians
Speaker 1: are not going anywhere. But it will defend our own country.
Speaker 1: We will defend our land and no matter what is happening,
Speaker 1: we will stay on our land and defend. Right now,
Speaker 1: Russia is in fronting in country in extremely high um
Speaker 1: like defense potentials from Ukrainian soldiers and even Ukrainian citizens
Speaker 1: since nobody wants Russian peace as they called it on
Speaker 1: Ukrainian land. So uh, there is a defense. But unfortunately
Speaker 1: there are no safe places in Ukraine no matter which
Speaker 1: region you are staying. Uh. Rockets are coming all over Ukraine,
Speaker 1: in every city in every region, since we don't have
Speaker 1: like a close sky upon Ukraine, so there are no
Speaker 1: safe houses, no safe cities. You have. We here every
Speaker 1: day at least three times the sirens that are asking
Speaker 1: us to go underground because the strike is coming on.
Speaker 1: And this is happening everywhere on all teratory of Ukraine.
Speaker 1: If we are going down to to to to to
Speaker 1: defend against possible miss missile strikes from Russia to Ukraine.
Speaker 1: About ground forces of Russia, well there is always bottles,
Speaker 1: but intensity of it has lowered. But we have really
Speaker 1: high risk areas such is varrieable that our archive and
Speaker 1: those cities are being suffered from the strikes from the
Speaker 1: Russian side, that it's actually destroying the city almost to
Speaker 1: the ground. Well, we are afraid. What what what? What's
Speaker 1: the feeling in Ukraine about how this may progress? This
Speaker 1: it's going to be a siege type of situation. Are
Speaker 1: you guys preparing for the long term? What's the feeling
Speaker 1: within Ukraine? Uh? First of all all you have to
Speaker 1: understand that every Ukrainian things that this work is one
Speaker 1: right now, we we won this world. We didn't we
Speaker 1: we didn't didn't die it, we didn't gone anywhere. We
Speaker 1: understand that right now we are just burging the most uh,
Speaker 1: the better conditions from Russia side, unfortunately, because they just
Speaker 1: have to leave and leave Ukrainian territories to Ukraine. But
Speaker 1: unfortunately the Russia doesn't have the possibility to do this.
Speaker 1: I think that this work will will come over since
Speaker 1: the Russia as empire will self destruct. We we have
Speaker 1: showed to the world that Russia is not power so
Speaker 1: powerful it was they was like pretending to be uh,
Speaker 1: and Russians from inside they started to see that actually uh,
Speaker 1: the aggressor they not Ukraine, that we are just defended defended.
Speaker 1: Now the more Christian freedom and this is not a
Speaker 1: war between Darsia and Ukraine. This is a war between
Speaker 1: civilized war the Euros, Russia A thank you very much
Speaker 1: forgiving us your time. We really appreciate it. I wish
Speaker 1: we had some more time at Vallee Covenko. Thanks for
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