WEBVTT - Inflation, Commodities, And The Supply Chain 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.479 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:23.920 at Bloomberg dot com slash podcast. Let's talk global geopolitics, 0:00:24.040 --> 0:00:26.880 global energy. There's a lot going on out there in 0:00:26.880 --> 0:00:29.680 this big world. At Price, senior fellow and former British 0:00:29.720 --> 0:00:32.880 trade official at n y U joins us, and let's 0:00:32.920 --> 0:00:35.879 first talk about just the global energy markets. That's kind 0:00:35.880 --> 0:00:38.440 of been on topic today again. Brent crew down about 0:00:38.479 --> 0:00:41.880 eight percent today, below a hundred dollars just at one thirty. 0:00:42.080 --> 0:00:44.239 There's a lot of cross winds out there. What are 0:00:44.280 --> 0:00:48.680 you focusing on here right? Well, on those cross winds, honestly, 0:00:48.680 --> 0:00:52.519 and it's it's a bit bizarre. Um. This war in Europe, 0:00:52.600 --> 0:00:54.880 I think is something of a mixed citty, and I 0:00:54.880 --> 0:00:57.400 think that that's something that everyone's looking at, including the FED. 0:00:57.960 --> 0:01:01.240 On the one hand, it's it's obviously inflationary, right because 0:01:01.240 --> 0:01:03.520 it's a supply disruption and that goes back to what 0:01:03.520 --> 0:01:06.400 you're saying about oil prices. They spiked, everyone freaked out 0:01:06.400 --> 0:01:08.880 at the pumps over here in the US. But on 0:01:08.920 --> 0:01:11.039 the other hand, it's deflationary in the sense that it 0:01:11.040 --> 0:01:13.480 could destroy global demand. Look at the I M S. 0:01:13.560 --> 0:01:17.560 It's downgrading its global growth forecast. So I think it's 0:01:17.600 --> 0:01:19.800 it's very it's a good phrase that you're using their 0:01:19.840 --> 0:01:22.240 cross winds and we're just gonna have to lick our finger, 0:01:22.319 --> 0:01:24.200 put it in the air and see which one is stronger. 0:01:25.360 --> 0:01:29.679 What do you think ed about the story that Saudi 0:01:29.720 --> 0:01:34.200 Arabia is in talks with China to um basically accept 0:01:34.240 --> 0:01:38.040 you on instead of dollars for oil. I mean, um, 0:01:38.080 --> 0:01:41.160 this has to be a huge economic issue, right It 0:01:41.240 --> 0:01:45.440 centers around the world reserve currency and the power that 0:01:45.480 --> 0:01:49.000 the US gets from that. But maybe a shift now 0:01:49.080 --> 0:01:54.160 towards UM, you know, the second biggest economy. Yes, this 0:01:54.240 --> 0:01:57.480 is I think everything that's happening now at roots is 0:01:57.520 --> 0:02:00.440 a dollar standard story. So you can you can look 0:02:00.480 --> 0:02:02.520 at the war in Ukraine, you can look at COVID, 0:02:02.960 --> 0:02:06.000 you can look at US domestic inflation, and I think 0:02:06.000 --> 0:02:08.160 with a big piece of paper and a market pin, 0:02:08.480 --> 0:02:10.760 you can draw the lines between all these things and 0:02:10.960 --> 0:02:14.120 what the world expects of the dollar and how people 0:02:14.120 --> 0:02:16.200 are looking at the dollar in the future. So if 0:02:16.240 --> 0:02:19.360 if the Saudis are indeed doing that, UM, that's no 0:02:19.520 --> 0:02:22.120 bueno for us, for those of us who have a 0:02:22.280 --> 0:02:25.240 very strong stake in the dollar standards UM. And I 0:02:25.280 --> 0:02:28.520 think it's something that in this period of disruption we 0:02:28.560 --> 0:02:31.800 should definitely watch, definitely look at, not get too distracted. 0:02:32.160 --> 0:02:35.280 Everything we're looking at is a dollar standard story. And 0:02:36.639 --> 0:02:38.760 what's kind of astounded me as as I think about 0:02:38.760 --> 0:02:42.560 this Russia Ukraine's situation is how it seems like it's 0:02:42.600 --> 0:02:45.680 so well coordinated some of the economic sanctions we're seeing 0:02:45.680 --> 0:02:48.720 from not just the US, but from other countries as well. 0:02:49.000 --> 0:02:52.000 From your perspective, how effective do you think they can 0:02:52.080 --> 0:02:54.880 be will be on Russia, Because just on the surface, 0:02:54.919 --> 0:02:58.920 to this late person, they seem pretty significant, right, I 0:02:58.960 --> 0:03:02.800 think very significant. I've seen a few commentators saying, you know, 0:03:02.840 --> 0:03:06.880 don't count the Russians out. These these sanctions will will 0:03:06.919 --> 0:03:09.760 not have the sort of effect that you want. But honestly, 0:03:09.760 --> 0:03:12.160 I would not be surprised by a complete and total 0:03:12.200 --> 0:03:15.080 collapse in Russia in the social fabric. UM. I think 0:03:15.400 --> 0:03:19.320 part of this is the whole information scenery. It seems 0:03:19.360 --> 0:03:21.000 if you look at reports in New York Times and 0:03:21.040 --> 0:03:23.520 so on, it seems that the Russians still don't know 0:03:23.600 --> 0:03:25.919 that they're at war, most of them, which is bizarre. 0:03:26.480 --> 0:03:29.320 But when they do find out, which you know, one 0:03:29.440 --> 0:03:32.360 has to think will happen as as the body count 0:03:32.480 --> 0:03:35.600 comes up, right, UM, I think that that, in combination 0:03:35.640 --> 0:03:38.320 with what's going on in the financial system, could really 0:03:38.440 --> 0:03:41.320 really put Russia into a serious problem. So I think 0:03:41.320 --> 0:03:43.360 one point to make though, just conceptually, is that a 0:03:43.360 --> 0:03:45.440 lot of people are talking about the Second Cold War. 0:03:45.840 --> 0:03:47.560 I think the difference here is that we're not trying 0:03:47.600 --> 0:03:50.800 to contain Russia and the Russian economy. We're actually trying 0:03:50.840 --> 0:03:54.440 to export recession and even a financial crisis into Russia. 0:03:54.800 --> 0:03:57.960 So I think that can be very effective. UM. One 0:03:58.000 --> 0:04:00.680 of the interesting moves I've seen, as someone who you 0:04:00.680 --> 0:04:02.640 know lived in Germany but I know you studied also 0:04:02.760 --> 0:04:08.960 German history, is the shift towards, you know, finally spending 0:04:09.000 --> 0:04:13.240 money on military equipment. They had been so not only understaffed, 0:04:13.280 --> 0:04:16.599 but also UM didn't have enough stuff previously and weren't 0:04:16.640 --> 0:04:19.800 spending enough of their UM weren't spending enough of their 0:04:20.640 --> 0:04:22.960 uh G d p on. You know, they had the 0:04:22.960 --> 0:04:27.000 two percent promise on military gear. Now they're gonna buy 0:04:27.200 --> 0:04:31.480 thirty five F thirty five's and fifteen new eurofighters and 0:04:31.680 --> 0:04:34.160 this seems to be you know, one of the um 0:04:34.320 --> 0:04:37.440 unintended consequences of Vladimir Putin's moving to Ukraine's that he's 0:04:37.480 --> 0:04:42.480 united Europe and you know rearmed Germany. Well, I mean 0:04:42.520 --> 0:04:45.800 absolutely rearmament is the right phrase to use. Again. I mean, 0:04:45.920 --> 0:04:50.039 the fact that the Germans are now comfortable with weaponry, 0:04:50.240 --> 0:04:54.479 with rearming with a strong military force is incredible and 0:04:54.520 --> 0:04:56.880 for anyone with interest in European and German history, this 0:04:56.960 --> 0:05:00.839 shift is profound. It's also so something that I think 0:05:01.000 --> 0:05:04.159 is going to be thought about in London, right because 0:05:04.160 --> 0:05:06.479 of course the UK it's just left the European Union. 0:05:07.200 --> 0:05:10.080 I don't think we foresaw a German standing army when 0:05:10.080 --> 0:05:12.880 we did that. But you're right, the real impact here 0:05:13.040 --> 0:05:16.240 is on Putin. He's made such a massive, massive error 0:05:16.279 --> 0:05:19.520 going into the Ukraine. And I think that the obvious 0:05:19.560 --> 0:05:23.680 bravery of the UK Ukrainian forces, Ukrainian civilians taking up arms. 0:05:23.960 --> 0:05:27.000 The longer that lasts, the longer Europe has time to 0:05:27.080 --> 0:05:29.919 rearm the longer a standing German army is going to 0:05:29.960 --> 0:05:32.640 be more of the prospect. I'd put one caveat in there. 0:05:33.000 --> 0:05:36.960 There are long standing historical ties between Germany and Russia, 0:05:37.240 --> 0:05:38.800 and I think if you look back to the First 0:05:38.800 --> 0:05:41.960 and Second World War, you could argue that the United 0:05:42.000 --> 0:05:44.200 States intervene in both of those wars to prevent a 0:05:44.279 --> 0:05:49.320 continental economy in which Russian and German economics were combined 0:05:49.400 --> 0:05:52.120 under the leadership of either Moscow or Berlin. So in 0:05:52.160 --> 0:05:54.680 the future after this war in Ukraine, I wouldn't rule 0:05:54.720 --> 0:05:58.560 out one scenario, which is an armed Berlin and armed 0:05:58.600 --> 0:06:01.760 Moscow shaking hats. All right, thank you so much for 0:06:01.839 --> 0:06:04.720 joining us. We really appreciate your perspective here. A lot 0:06:04.839 --> 0:06:08.120 of again cross winds here on a global geopolitical space 0:06:08.200 --> 0:06:12.120 impacting markets at prices and senior fellow and former trade 0:06:12.160 --> 0:06:16.520 official at New York University giving us some thoughts here. 0:06:21.440 --> 0:06:25.000 I pulled up my g l g l c O 0:06:25.240 --> 0:06:28.800 screen on the Bloomberg Terminal global commodities prices, and on 0:06:28.800 --> 0:06:31.640 a year to date basis, everything is pretty much everything 0:06:31.720 --> 0:06:35.839 is up double digits, whether it's energy, medals, aggs, and 0:06:35.839 --> 0:06:39.320 I guess that's what you call inflation. Um, the question 0:06:39.320 --> 0:06:41.640 is when does it peak? How click that doesn't come down? 0:06:41.800 --> 0:06:44.960 How do I play it? Will Ryant, chief executive officer 0:06:45.040 --> 0:06:47.960 for Grantit Chairs Advisors, joins us Will again, I'm looking 0:06:48.000 --> 0:06:50.600 at my commodities pretty much everything is up big time. 0:06:51.240 --> 0:06:54.440 When does this peak? Do you think this inflation in 0:06:54.440 --> 0:06:58.839 this U S economy? Well, it's a great question. Um, 0:06:58.880 --> 0:07:02.320 I think that's you know, Unfortunately, for as far as 0:07:02.360 --> 0:07:07.320 inflation goes, these things tend to take a number of years. 0:07:07.360 --> 0:07:11.760 No cycles, particularly on the commodity side, tend to last 0:07:11.800 --> 0:07:15.120 in years, not days or months. Um. I think at 0:07:15.120 --> 0:07:19.520 this stage you're really talking about two possible scenarios. Really, 0:07:19.920 --> 0:07:22.840 if you're talking about inflation easing, that's going to come 0:07:22.880 --> 0:07:26.920 from an increase in supply, and an increase in supply 0:07:27.280 --> 0:07:30.760 you know, will happen, um as long as high prices 0:07:30.760 --> 0:07:34.320 stay or prices stay elevated, but it takes time. The 0:07:34.360 --> 0:07:37.040 other thing, probably the most likely thing that will happen 0:07:37.240 --> 0:07:41.360 if prices keep continuing to rise, is demand destruction. In 0:07:41.400 --> 0:07:44.480 other words, the consumer just gives up at some point 0:07:44.520 --> 0:07:48.040 and says, you know what, I can't pay five dollars 0:07:48.040 --> 0:07:50.960 per gas or six or seven or eight or whatever 0:07:51.000 --> 0:07:53.720 it may be at that time. And once that happens, 0:07:53.840 --> 0:07:56.200 then you start to see using because of demand for 0:07:56.240 --> 0:08:00.320 that commodity falls. How much is how a law stick 0:08:01.160 --> 0:08:03.760 is the oil patch? I was talking to a gold 0:08:03.800 --> 0:08:07.320 miner yesterday who said, it's very that come out of 0:08:07.320 --> 0:08:09.840 the right now is very inelastic. They're taking as much 0:08:09.880 --> 0:08:12.000 out of the ground as they can, and the and 0:08:12.080 --> 0:08:16.520 the ramp up time for new production is is much longer. Um, 0:08:16.640 --> 0:08:20.280 what does what does oil look like in those terms? Yeah? 0:08:20.280 --> 0:08:23.280 I think that's right. Um that you know, again, you 0:08:23.320 --> 0:08:26.600 know it depends on what country you know you're talking about. 0:08:26.720 --> 0:08:30.320 Definitely some more production can be brought online. And clearly 0:08:30.360 --> 0:08:33.120 the the the easiest winds, if you want to look 0:08:33.120 --> 0:08:35.800 at it that way, are going to be from existing 0:08:36.520 --> 0:08:39.440 producing countries. And that's what the administration is doing, is 0:08:39.440 --> 0:08:43.160 going to going to produces like Saudi Arabia, going to 0:08:43.240 --> 0:08:47.240 the OPEC countries, even to Venezuela places like that, and 0:08:47.360 --> 0:08:50.920 trying to get more barrels. So that's certainly possible. But 0:08:51.000 --> 0:08:54.240 in terms of domestic production, you know, again those um 0:08:54.760 --> 0:08:57.400 fields sites that are already in operation may be able 0:08:57.440 --> 0:09:00.760 to to increase but really you're looking for much more 0:09:00.800 --> 0:09:03.679 of an increase from likes of shale et cetera. What 0:09:04.040 --> 0:09:07.079 is the problem with getting more out of the shale? Um? 0:09:07.120 --> 0:09:11.040 I heard somebody this morning say costs to bring oil 0:09:11.080 --> 0:09:13.280 out of the ground in the US are thirty three 0:09:13.280 --> 0:09:16.520 dollars a barrel. Shouldn't that motivate? You know? You hear 0:09:16.559 --> 0:09:19.800 the Biden administration talk all the time as if they've 0:09:19.840 --> 0:09:24.800 done literally everything they can about these nine thousand leases. Um. 0:09:24.840 --> 0:09:30.040 If that's really how it is, wouldn't the massive you know, 0:09:30.120 --> 0:09:34.120 sixties six dollars in profit per barrel of oil drive 0:09:34.320 --> 0:09:38.760 everybody out to bring it to use those leases? Yes? 0:09:38.880 --> 0:09:42.080 And no? Um. So here's what happened last time. You 0:09:42.120 --> 0:09:46.040 may remember that there was a huge boom in US 0:09:46.080 --> 0:09:51.439 shale and because of that, you know one, prices collapsed, 0:09:51.440 --> 0:09:55.160 and ultimately they did so partly because the U S 0:09:55.160 --> 0:09:59.920 shale industrial US got into a market share war with Sadia, 0:10:00.000 --> 0:10:04.760 Arabia and Opeque in terms of competing for market share. 0:10:05.000 --> 0:10:06.960 The price well went down. A lot of those a 0:10:06.960 --> 0:10:10.360 lot of those shell producers went bust, and in that 0:10:10.880 --> 0:10:14.200 sort of rush to produce more production, banks have lent 0:10:14.320 --> 0:10:17.040 them a lot of money as a lot of financing there, 0:10:17.040 --> 0:10:18.760 and a lot of people lost a lot of money 0:10:19.360 --> 0:10:23.480 in that particular collapse. So long story short is, the 0:10:23.520 --> 0:10:26.000 producers are going to be more disciplined. They're going to 0:10:26.040 --> 0:10:28.760 be more disciplined because the banks and the lenders are 0:10:28.800 --> 0:10:32.440 making them mean more disciplined. But they're also fearful of, 0:10:32.840 --> 0:10:35.400 you know, the oil price collapsing again like it did 0:10:35.480 --> 0:10:37.479 last time. So people are going to be more disciplined 0:10:37.520 --> 0:10:40.760 and therefore a bit more cautious about bringing that production 0:10:40.840 --> 0:10:45.000 on because of the cautions and retail that we had 0:10:45.120 --> 0:10:47.840 last time. Hey, well, I'm looking at my metal screen 0:10:47.840 --> 0:10:50.520 here and one of the medals that is kind of 0:10:50.559 --> 0:10:52.880 lagged a little bit is platinum. What's the call on 0:10:53.120 --> 0:10:57.640 spot platinum here? Well, plantinum is an interesting one because 0:10:57.760 --> 0:11:01.760 palladium went to the Moon after the war broke out, 0:11:02.040 --> 0:11:05.880 and that was because simply Russia is the largest producer 0:11:05.960 --> 0:11:10.800 of palladium in the world. Russia is also the second 0:11:10.960 --> 0:11:15.199 largest producer of platinum. Number one producer is South Africa. 0:11:15.400 --> 0:11:18.520 But those metals can be interchanged one for one. They're 0:11:18.520 --> 0:11:22.680 both used for catholytic converters to clean the emissions that 0:11:22.800 --> 0:11:26.960 come out of an internal combustion engine. And you know, 0:11:27.080 --> 0:11:29.920 with the price of palladium almost three times the price 0:11:29.960 --> 0:11:33.480 of platinum, they can be exchanged or substituted one for one. 0:11:33.600 --> 0:11:37.600 So people are looking at platinum right now, both in 0:11:37.760 --> 0:11:41.320 terms of you know, the war situation and a supply 0:11:41.440 --> 0:11:44.520 disruption coming from Russia, but also because with the price 0:11:44.559 --> 0:11:47.640 of pladium so high, I thinking automakers have to come 0:11:47.679 --> 0:11:53.880 in here and substitute these metals in the favor of platinum. Hey, well, 0:11:53.920 --> 0:11:56.000 thanks so much for joining us. Really appreciate it. Next 0:11:56.040 --> 0:11:58.079 time we're gonna talk a little pork bellies, maybe I'm 0:11:58.080 --> 0:12:01.120 going to lean hogs up to five year to date? 0:12:01.120 --> 0:12:04.959 How about that tree ripping face? Will Ryan, chief executive 0:12:04.960 --> 0:12:07.800 officers for granted Chairs advisors will always checking when with 0:12:07.800 --> 0:12:10.520 Will whenever there's big moves in the commodities space, as 0:12:10.520 --> 0:12:13.720 there has been here over the last uh several truly unbelievable, right, 0:12:13.800 --> 0:12:17.240 I mean, we saw Brent crude um went up to 0:12:17.720 --> 0:12:21.120 what a hundred and thirty nine dollars of barrel like 0:12:21.200 --> 0:12:26.280 literally seven days ago, and now it's trading at Yeah, 0:12:26.320 --> 0:12:28.520 it's amazing. And you know, oil traders, I used to 0:12:28.600 --> 0:12:30.439 know a few oil traders. I would trade this stuff 0:12:30.440 --> 0:12:32.559 in the pits, and they say you will get crushed 0:12:32.840 --> 0:12:34.679 in this market if you don't pay attention, and that's 0:12:34.679 --> 0:12:41.600 certainly the case here. Dave Major's joins us the CEO 0:12:41.679 --> 0:12:44.520 of me Com Collector Car Auctions. Before we get down 0:12:44.520 --> 0:12:48.840 to the business side of it. Um, Yeah, what is 0:12:48.960 --> 0:12:53.760 going on with with the prices in terms of these cars? 0:12:53.800 --> 0:12:58.040 I mean, for regular every day like an F one fifty, Um, 0:12:58.080 --> 0:13:00.679 we're paying out the nose. But the prices that I'm 0:13:00.720 --> 0:13:03.280 seeing for like a goat as as as Greg Jarrett 0:13:03.360 --> 0:13:07.800 just mentioned, are just huge. Yeah. Well yeah, first, good 0:13:07.800 --> 0:13:11.240 morning from State Farm Stadium in Glendale, Arizona. We're getting 0:13:11.240 --> 0:13:15.320 ready to get started with another big MICAM auction starts 0:13:15.360 --> 0:13:19.760 tomorrow and we're expecting to see prices continue to be 0:13:19.800 --> 0:13:23.760 in the stratosphere for collector cars. That that phenomenon started 0:13:23.800 --> 0:13:28.400 for us back in the summer of when we came 0:13:28.440 --> 0:13:31.000 back to auction coming out of the pandemic, and and 0:13:31.120 --> 0:13:34.040 actually has has been picking up steam ever since, as 0:13:34.080 --> 0:13:37.440 evidenced by our well even before that with the Big Muscle. 0:13:37.440 --> 0:13:42.160 I remember ten years ago looking at Plymouth couta Barracuda 0:13:42.880 --> 0:13:45.240 UM that you sold for I think three point four 0:13:45.280 --> 0:13:50.000 million dollars um. Why is this? That's the holy grail 0:13:50.080 --> 0:13:53.240 of collector cars? I see? So that's why because it's 0:13:53.280 --> 0:13:56.599 the one um It's not like a GT five hundred 0:13:56.760 --> 0:14:03.960 or a Chevrolet um at sas now, the Plymouth Plymouth 0:14:04.000 --> 0:14:06.800 heavy Couta has always been that that car that if 0:14:06.840 --> 0:14:09.720 you're if you're a serious collector of American muscle cars, 0:14:09.800 --> 0:14:12.800 you have to have one of those in your collection. 0:14:12.880 --> 0:14:16.440 And as you said, they go for multimillions of dollars, 0:14:16.480 --> 0:14:19.760 which you know, it's just incredible. But the whole collector 0:14:19.800 --> 0:14:23.000 car market, you know, return something like thirty or forty 0:14:23.080 --> 0:14:26.680 percent a year over the last ten fifteen years. So 0:14:27.200 --> 0:14:30.920 that's the cream of the crop that the markets exactly. 0:14:31.920 --> 0:14:34.560 Hey David, you know, unlike Matt, I'm not a car geek, 0:14:34.640 --> 0:14:38.880 although I do own BMW five thirty five with a 0:14:38.960 --> 0:14:41.800 manual transmission. So if you want to make a bid, uh, 0:14:41.920 --> 0:14:45.480 feel free. What's driving this market? Is this just the 0:14:45.640 --> 0:14:47.640 people saying, oh my god, they aren't going to make 0:14:47.640 --> 0:14:50.920 any more you know, gasoline driven cars, so I better 0:14:50.960 --> 0:14:56.240 get one, you know, gasolene cars, manual shift. Uh, it's 0:14:56.280 --> 0:14:59.560 a lot of you know, people my age coming of 0:14:59.640 --> 0:15:02.200 age and remembering the cards of their youth from the 0:15:02.320 --> 0:15:05.000 sixties and seventies in particular. But now we're starting to 0:15:05.040 --> 0:15:07.920 see cars in the eighties and nineties pick up steam 0:15:07.960 --> 0:15:10.160 as well. And so, you know, I think a lot 0:15:10.200 --> 0:15:14.240 of things happened during the pandemic that that built the 0:15:14.320 --> 0:15:17.840 steam for the collector car market, and we're seeing that 0:15:17.920 --> 0:15:20.560 continue with a lot of great cars coming to the market. 0:15:20.600 --> 0:15:23.480 We've got fifteen cars here in Arizona, the largest number 0:15:23.480 --> 0:15:27.120 of cars ever to come to this office. It doesn't 0:15:27.120 --> 0:15:30.120 look like it's selling down at Yeah, we should definitely 0:15:30.160 --> 0:15:32.240 go there. You you sell though the cream of the 0:15:32.280 --> 0:15:34.880 crop we're talking about. You have a nineteen sixty seven 0:15:35.360 --> 0:15:38.160 Ferrari to s G t V four, So this is 0:15:38.960 --> 0:15:43.400 another level. But on a lower end, have things like 0:15:43.960 --> 0:15:46.800 bring a trailer or what's Doug Demro's thing called cars 0:15:46.800 --> 0:15:49.760 and bids um you know Hemming's have they kind of 0:15:49.760 --> 0:15:54.000 helped push up the top end. Yeah, I think particularly 0:15:54.000 --> 0:15:56.800 in the collector car market, that rising tide lifts all 0:15:56.880 --> 0:16:00.600 boats certainly holds true. There's you know, they're bring a trailer. 0:16:00.640 --> 0:16:04.880 There's a certain clientele that wants to just transact transact business. 0:16:05.480 --> 0:16:07.520 When you come to make and makeam auction, it's more 0:16:07.520 --> 0:16:09.760 of an experience. You want to you want to come 0:16:09.760 --> 0:16:11.520 and look at the cars and touch and feel them 0:16:11.560 --> 0:16:15.080 and talk to your friends. Will you never do a day? 0:16:15.080 --> 0:16:18.800 Will you never do an online auction platform, you know, 0:16:18.880 --> 0:16:22.760 eBay style like those others we do. We do online 0:16:22.960 --> 0:16:26.280 live auctions. So for instance, our auction here from Glendale, 0:16:26.640 --> 0:16:29.200 you can bid online right along with those people that 0:16:29.240 --> 0:16:31.640 are sitting in the seats, and and if you look 0:16:31.680 --> 0:16:34.200 on the website on makam dot com as you're bidding, 0:16:34.240 --> 0:16:35.800 it looks just like you're sitting in the front row 0:16:35.800 --> 0:16:38.600 of the auction. So we're we're a live auction company. 0:16:38.640 --> 0:16:41.520 We prefer to, you know, to include the excitement of 0:16:41.560 --> 0:16:43.720 a live auction, whether you're in person, on the phone, 0:16:43.840 --> 0:16:46.400 or via the internet. However you want to bid with us, 0:16:46.680 --> 0:16:50.200 you can participate, Dave. But I understand it correctly that 0:16:50.240 --> 0:16:54.680 you're at the big football stadium in in Glenville, correct. 0:16:54.720 --> 0:16:59.040 State Farmers. State Farmers our oldest and and largest sponsor, 0:16:59.160 --> 0:17:01.720 and we're really happy to have this third year. I 0:17:01.720 --> 0:17:03.800 believe that we've been at State Farm Stadium where the 0:17:03.840 --> 0:17:06.199 Arizona Cardinals. I mean that suggests you're gonna have a 0:17:06.280 --> 0:17:08.960 lot of people, a lot of Matt Miller type people 0:17:09.000 --> 0:17:10.439 come through. How many people are going to come through 0:17:10.440 --> 0:17:13.760 this auction, Well, we'll probably have over the four days 0:17:13.760 --> 0:17:16.840 of the auction, we'll probably have somewhere around twenty people. 0:17:17.320 --> 0:17:19.040 You know. I certainly wish that we could fill the 0:17:19.240 --> 0:17:21.919 sixty five thousand seats in the arena every day, but 0:17:22.040 --> 0:17:26.080 that that doesn't quite happen. Have you seen any effect 0:17:26.119 --> 0:17:29.640 of I mean, I don't know Russians, uh what their 0:17:29.680 --> 0:17:31.399 taste is in cars, but have you ever seen have 0:17:31.400 --> 0:17:36.600 you seen any effect on the the sanctions? You know, 0:17:36.920 --> 0:17:41.800 we haven't yet. We do have a few Russian collectors 0:17:41.840 --> 0:17:44.520 that work with us. I assume that we're going to 0:17:44.560 --> 0:17:47.640 see you know, that fall off. They're typically not at 0:17:47.680 --> 0:17:50.120 this auction there at one of our two biggest auctions, 0:17:50.119 --> 0:17:52.560 either in cas Semi, Florida that we just had in 0:17:52.640 --> 0:17:56.159 January or Indianapolis, Indiana in May. But I would expect 0:17:56.160 --> 0:17:59.120 that we're probably going to see them apps and hopefully 0:18:00.080 --> 0:18:02.800 this conflict is over by the time we get to 0:18:02.840 --> 0:18:05.320 May and things get back to normal little bit, not 0:18:05.400 --> 0:18:07.840 just for the sake of our auctions and our collector 0:18:07.880 --> 0:18:09.920 and look for the world in general. From your mouth 0:18:09.960 --> 0:18:11.919 to God's ears. Dave, thanks so much for joining us. 0:18:12.000 --> 0:18:16.040 Dave Major's there, the CEO of me Com Collector Car Auctions. 0:18:16.080 --> 0:18:18.320 The auction I think its off tomorrow in Glendale. I'm 0:18:18.320 --> 0:18:21.120 definitely gonna be sitting home watching it. You can follow 0:18:21.160 --> 0:18:24.800 that TV, yeah, for sure, or or online or online, 0:18:24.840 --> 0:18:31.600 but I'm probably not gonna be bidding during this entire 0:18:31.720 --> 0:18:35.399 pandemic and the resulting economic dislocation. One of areas of 0:18:35.400 --> 0:18:37.880 the economy that just always amazed me to the upside 0:18:37.960 --> 0:18:41.800 was the real estate business, whether it's new home sales, 0:18:42.040 --> 0:18:47.119 new home construction, um existing home sales just really really strong. 0:18:47.160 --> 0:18:49.639 And obviously there's a lot of reasons for that, not 0:18:49.680 --> 0:18:51.399 the least which is a record low interest rate. But 0:18:51.520 --> 0:18:53.480 a lot of folks are thinking about ways to play that, 0:18:53.640 --> 0:18:56.760 and one way might be through the technology side. Uh 0:18:56.880 --> 0:18:59.600 two weeks Court Demaunch. He's the CEO of pro Corps 0:18:59.600 --> 0:19:02.560 technolog He joins us here. See thanks so much for 0:19:02.800 --> 0:19:06.920 joining us here. Tell us about procure pro Core pro 0:19:07.040 --> 0:19:09.520 Core Sorry, and how you guys kind of kind of 0:19:09.520 --> 0:19:14.400 fit into the construction business. Yeah, no, Paul, by the way, 0:19:14.400 --> 0:19:16.479 thank you for having me nice too, nice to meet you. 0:19:16.920 --> 0:19:20.960 So pro Core is a construction project management platform and 0:19:21.000 --> 0:19:23.840 we have provided we provide solutions to everybody involved in 0:19:23.880 --> 0:19:26.800 the construction process. So if you've ever built anything like 0:19:26.840 --> 0:19:29.280 remodeled the bathroom or built a house, you know that 0:19:29.320 --> 0:19:31.160 you're going to hire a general contractor and a bunch 0:19:31.160 --> 0:19:34.080 of subcontractors and these folks are going to come together, uh, 0:19:34.160 --> 0:19:37.040 probably never worked together as a team before and try 0:19:37.080 --> 0:19:40.440 to solve the complexities of your project, which is a prototype. 0:19:40.480 --> 0:19:42.479 And it doesn't matter if it's a house, doesn't matter 0:19:42.480 --> 0:19:44.480 if it's a nuclear power plant or a port, or 0:19:44.520 --> 0:19:47.200 a bridge or a highway. Uh. You know, construction is 0:19:47.240 --> 0:19:51.000 everywhere and pro Work platform brings everybody together onto a 0:19:51.040 --> 0:19:53.720 single source of truth uh and enables jobs to get 0:19:53.720 --> 0:19:56.280 done on time and on budget. And it's um you know, 0:19:56.359 --> 0:19:58.600 we've we've now been in business for twenty years and 0:19:58.640 --> 0:20:01.440 we're a global company and we're having a lot of fun. 0:20:01.920 --> 0:20:06.240 So how much of your business is retail, residential versus 0:20:06.440 --> 0:20:10.479 um you know, commercial? So it's actually even way broader 0:20:10.520 --> 0:20:12.920 than that, Pall. It's it's interesting people tend to think 0:20:12.920 --> 0:20:17.360 of construction as being residential and commercial. Um, there is industrial, 0:20:17.440 --> 0:20:21.680 there's warehouses, there is ports and harbors and civil engineering 0:20:21.680 --> 0:20:25.440 projects and you know, uh, nuclear power plants. So um, 0:20:25.480 --> 0:20:30.520 we are very diversified across a very broad spectrum. There's 0:20:30.640 --> 0:20:34.399 very little construction on this planet that doesn't benefit from 0:20:34.480 --> 0:20:37.320 using pro corps across all of those sectors. So we're 0:20:37.440 --> 0:20:40.439 very much not concentrated. All right, So give us a 0:20:40.440 --> 0:20:43.840 sense of kind of how your business fared during the 0:20:43.840 --> 0:20:47.480 pandemic and kind of what's the near term outlook. Yeah, 0:20:47.560 --> 0:20:51.760 so um, we we we tend to follow the macro 0:20:51.920 --> 0:20:56.560 economic environment pretty pretty closely, which was as as the 0:20:56.600 --> 0:21:00.440 pandemic came on. Um, the general sense it in the 0:21:00.480 --> 0:21:02.840 building industry was there was some fear about what was 0:21:02.880 --> 0:21:06.119 coming in the future. Um. So what we what we 0:21:06.160 --> 0:21:08.879 saw was there were some headwinds in the industry, but 0:21:08.880 --> 0:21:10.280 then there were some tail winds. So let me the 0:21:10.320 --> 0:21:12.639 headwinds that we faced when we were going into the 0:21:12.640 --> 0:21:16.400 pandemic was, uh, there's been a labor shortage in construction 0:21:16.440 --> 0:21:19.960 for years and that only got more challenging during the 0:21:20.800 --> 0:21:23.040 during the pandemic. And then you you you know, you've 0:21:23.040 --> 0:21:25.639 probably talked a lot about the supply chain challenges and 0:21:26.680 --> 0:21:29.160 the global economy, and that's been an issue as well 0:21:29.200 --> 0:21:32.480 as commodity prices and inflation. So those are the headwinds 0:21:32.880 --> 0:21:34.600 um that we see in the industry, but we are 0:21:34.640 --> 0:21:37.719 benefiting from some tail winds. And the tail winds are 0:21:37.800 --> 0:21:40.240 that this industry is one of the last to go 0:21:40.359 --> 0:21:43.800 through the digital transformation uh phase, so in it's still 0:21:43.800 --> 0:21:47.520 early days in digital transformation, and COVID brought on two 0:21:48.160 --> 0:21:51.760 new kind of opportunities for pro Core. One was because 0:21:51.800 --> 0:21:54.320 of the remote work environment that came out of COVID. 0:21:54.760 --> 0:21:57.840 A platform like pro Corp, which brings everyone together virtually 0:21:58.560 --> 0:22:00.960 is really really beneficial to come and so it enables 0:22:00.960 --> 0:22:03.040 people to not have to drive into the job site 0:22:03.040 --> 0:22:05.880 every day that don't aren't required to be there. Number 0:22:05.880 --> 0:22:07.879 one and number two was some of the some of 0:22:07.880 --> 0:22:09.919 the folks that had been in the industry for a 0:22:09.920 --> 0:22:13.320 long time retired during COVID, and then a lot of 0:22:13.320 --> 0:22:15.560 the younger folks that were coming out of university. We're 0:22:15.600 --> 0:22:19.600 coming in to the industry expecting the technology that would 0:22:19.600 --> 0:22:22.600