WEBVTT - Single Best Idea with Tom Keene: Geoffrey Yu

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

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<v Speaker 2>A single best idea, and all I can tell you

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<v Speaker 2>is twenty twenty five starts overwhelming. I mean all sorts

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<v Speaker 2>of conversations and real strong opinions, some positive, some negative,

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<v Speaker 2>across economics, finance, investment, international relations, crowding in as well

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<v Speaker 2>a lot of jokes in ha haha today about Greenland,

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<v Speaker 2>but you know what, it's sort of serious. I learned

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<v Speaker 2>more about Greenland in the last four hours than I've

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<v Speaker 2>learned in forty years, and thanks to our team for that,

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<v Speaker 2>for briefing us out. I did not know that nuke

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<v Speaker 2>Greenland on the West coast, sort of down by the tip.

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<v Speaker 2>I think you wave at it when you're going layard

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<v Speaker 2>at JFK, but I feel on the right side of

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<v Speaker 2>the plane. But you know, it's close to New York

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<v Speaker 2>and Copenhagen. I didn't know that. So you know, there's

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<v Speaker 2>some surprises out there as well. There is no surprise

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<v Speaker 2>that Jeffrey you at B and Y is the kind

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<v Speaker 2>of person that can give you an holistic view. And

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<v Speaker 2>one of the shadows that's out there is given the

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<v Speaker 2>correlations now and perfectly particularly dynamics and currencies are their

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<v Speaker 2>shadows back to nineteen ninety eight. Jeff youw of B.

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<v Speaker 1>And Y ninety eight is not going to happen. Let's

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<v Speaker 1>look at the Indonesian rupea right, so at the forefront

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<v Speaker 1>of what happened in ninety eight. Right now, they are

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<v Speaker 1>self financed, right, so they've got enough in terms of

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<v Speaker 1>sufficient savings. It was a very popular trade of the

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<v Speaker 1>last two or three years. They're back to being a

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<v Speaker 1>commodity currency, selling nickel that have a fifth and more

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<v Speaker 1>than a fifth of the world's nickel, for example. In

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<v Speaker 1>terms of the rem and B there is active management

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<v Speaker 1>right now. More important in terms of quote unquote rate,

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<v Speaker 1>I need to see an upside break in yields in China.

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<v Speaker 1>The two year Chinese government bond could converge with a

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<v Speaker 1>two year Japanese government bond soon, right, So let's just

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<v Speaker 1>think about that. What that signifies in terms of the

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<v Speaker 1>economic outlook for China. Japan's were sixty five basis points

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<v Speaker 1>right now, Chinese to you going through one percent. So

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<v Speaker 1>I think all of that points to a need for

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<v Speaker 1>a push for reflation in China. And that's where Okay,

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<v Speaker 1>ten year China that go up by one hundred basis points.

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<v Speaker 2>We went on to talk about the politics of Beijing

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<v Speaker 2>and how they affect a policy to advance Jeff Yu's

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<v Speaker 2>theory that they've got to really flood the system with

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<v Speaker 2>support to boost and sustain consumption. Fascinating interview. You can

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<v Speaker 2>see that in entirety. We continued with mister Yu and

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<v Speaker 2>of course with Jeff Yu. You want to talk about

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<v Speaker 2>the path forward again, Jeff YOUU of B and Y.

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<v Speaker 1>It's about your contribution to your risk adjusted returns, right,

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<v Speaker 1>so if on a risk adjusted basis you can make

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<v Speaker 1>a case for alternatives and also subject to your duration

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<v Speaker 1>for your iras and for your iss here with long

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<v Speaker 1>enough for time horizon the old endowment profiles with my

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<v Speaker 1>old wealth management has on that is sufficient. You need

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<v Speaker 1>sufficient allocations into alternatives and of which your private markets

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<v Speaker 1>is a key part of that right now, So there

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<v Speaker 1>will be regulatory adjustments and I think the rest of

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<v Speaker 1>the world, in the UK, Europe, they're looking to the

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<v Speaker 1>US to see how this goes from here. So this

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<v Speaker 1>is here to stay, but subject to contributional risk and

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<v Speaker 1>it's not going to be steady show tracking errors and

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<v Speaker 1>also sharp ratios they go up and down, so subject

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<v Speaker 1>to what people need. At this point, their liquidity lockups

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<v Speaker 1>the maturities of their profiles. There will always be a

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<v Speaker 1>role for alternatives, and now that the total definition of

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<v Speaker 1>alternatives has changed, so I see the US leading the

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<v Speaker 1>way of this for many many years to come.

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<v Speaker 2>Is Jeff you with BNY It really can't say enough

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<v Speaker 2>about my radar up on this. I just don't understand

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<v Speaker 2>the due diligence for individuals in private equity and private

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<v Speaker 2>credit in your ir A. We advance this conversation later

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<v Speaker 2>in the show today with Randy Schimmer of Churchill Asset

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<v Speaker 2>Management and Private Credit. As you'd gather plus plus about

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<v Speaker 2>private credit expanding their audience over to individuals. We expand

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<v Speaker 2>our audience each and every day. An Apple car Play,

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<v Speaker 2>Android Auto, Yes, I researched today. Apple car Play and

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<v Speaker 2>Android Auto are not in Greenland. I learned that today.

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<v Speaker 2>I thought maybe Apple car Play would be there for

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<v Speaker 2>fifty thousand people twenty thousand and nook Greenland, but no,

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<v Speaker 2>it's not. We're also in Washington ninety nine to one

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<v Speaker 2>FM in a congestion tax New York City, Bloomberg eleven

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<v Speaker 2>three oh am ninety two nine FM in Boston and

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<v Speaker 2>on YouTube and YouTube podcasts. This is single best idea