WEBVTT - Goldman Sachs CEO Talks Saudi Arabia and US Economy

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

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<v Speaker 2>Let's just talk through this series of initiatives that you've

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<v Speaker 2>done in the region over the past twelve months, because

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<v Speaker 2>for what I can see, you're really doubling down in

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<v Speaker 2>your asset management business. Earlier this year, UNLS a partnership

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<v Speaker 2>with PIF in asset management. Last week you ANDLS that

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<v Speaker 2>you were expanding wealth management in Saudi Arabia as well.

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<v Speaker 2>So you know, what's the vision here and what's the

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<v Speaker 2>kind of growth that you're looking.

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<v Speaker 3>To Chief, Well, we're certainly excited about what's going on

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<v Speaker 3>in Saudi Arabia and what's going on in the GCC

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<v Speaker 3>more broadly. I think it's a big opportunity for our business.

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<v Speaker 3>We've been here for a while, but we've certainly been

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<v Speaker 3>investing in expanding. You know, here in Saudi Arabia. We

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<v Speaker 3>opened a new office this year. We've got about twenty

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<v Speaker 3>people on the ground here, but we're probably headed to

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<v Speaker 3>about sixty and the big reason for that expansion is

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<v Speaker 3>we've recently launched the initiative of our high end private

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<v Speaker 3>wealth business here in the region, and so that will

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<v Speaker 3>bring more resources, more attention, and more focus. We've been

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<v Speaker 3>in the region for quite some time. We've been active

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<v Speaker 3>as a member of the TATTLE. I think we were

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<v Speaker 3>one of the early participants in the equity markets here,

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<v Speaker 3>and so we've been very, very involved in the equity

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<v Speaker 3>markets as an international firm. We've led some of the

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<v Speaker 3>largest IPOs in the region. I think you're going to

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<v Speaker 3>continue to see an influx of capital markets transactions, and I.

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<v Speaker 1>Think that's something that certainly we want to sit in

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<v Speaker 1>the middle of those flows.

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<v Speaker 3>Financing has always been core to Goldman Sachs strategy in

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<v Speaker 3>any part of the world. You mentioned our partnership with

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<v Speaker 3>a private investment fund around private credit. That's something we're

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<v Speaker 3>certainly excited about too. So when you step back and

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<v Speaker 3>you think about the progress here in the Kingdom, the

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<v Speaker 3>need for foreign direct investment to come in to continue

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<v Speaker 3>to allow the population here to participate more economically, the

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<v Speaker 3>changes that are coming from the investment that the Kingdom's

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<v Speaker 3>making in infrastructure and the local economy here. We think

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<v Speaker 3>it's great opportunity for Goldman Sachs to continue to partner.

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<v Speaker 1>With the Kingdom.

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<v Speaker 2>Do you see that investment coming in.

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<v Speaker 1>I think there's great opportunity.

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<v Speaker 3>I think it's one of the things that the Crown

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<v Speaker 3>Prince is very focused on is how do you look

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<v Speaker 3>at when you think about, you know, the exports, particularly

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<v Speaker 3>of energy here, how do you create a more localized economy.

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<v Speaker 1>And so I do see signs of.

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<v Speaker 3>An increase in that activity, particularly on things like tourism

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<v Speaker 3>and investment infrastructure that can support tourism, but also in

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<v Speaker 3>certain manufacturing areas. And I do think one of the

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<v Speaker 3>things that's interesting is AI and the ability for there

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<v Speaker 3>to be AI infrastructure here that can be used and

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<v Speaker 3>can be exported to different places in the region.

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<v Speaker 2>Yeah, and certainly many people are eyeing up the opportunities there.

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<v Speaker 2>You also opened up an office in Kuwait as well,

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<v Speaker 2>so talk us through the plantin sure.

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<v Speaker 3>We have a partnership with Kuwait, and we've actually we've

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<v Speaker 3>actually been in Kuwait and have done business in Kuwait

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<v Speaker 3>going back to the nineteen seventies, so it's a long

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<v Speaker 3>term partnership. What I think is interesting about what's going

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<v Speaker 3>on in Kuwait at the moment is there's a real

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<v Speaker 3>effort after a period of time following the war in

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<v Speaker 3>the nineteen nineties where they really did not put the

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<v Speaker 3>capital into the infrastructure and growth locally and they had

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<v Speaker 3>a legislative branch that was stopping progress. The emir now

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<v Speaker 3>is taking action to really spur significant investments, significant growth,

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<v Speaker 3>and we're very proud to partner with the leadership there

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<v Speaker 3>and helping them think through strategically how to expand that growth.

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<v Speaker 2>So Golden has offices now in pretty much all of

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<v Speaker 2>the financial hubs of the region. And I just wonder

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<v Speaker 2>whether you think it is necessary or it helps to

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<v Speaker 2>get access to these types of pools of capital, you know,

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<v Speaker 2>to these long term commitments. Actually having a physical presence.

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<v Speaker 1>In the country, I think it helps enormously.

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<v Speaker 3>And you know, the world changes and there's lots of

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<v Speaker 3>technology and there's lots of flexibility, but showing up matters.

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<v Speaker 1>You don't have to look much farther than outside of us.

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<v Speaker 3>Here today, they're an awful lot of people from all

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<v Speaker 3>over the world that have shown up here because they

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<v Speaker 3>want to build relationships, partnerships, they want to participate. And

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<v Speaker 3>so whether it's here in this region or you can

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<v Speaker 3>go back to the United States. You know, why do

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<v Speaker 3>we have localized offices all across the country in the

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<v Speaker 3>United States, Because in those communities, people want presents, they

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<v Speaker 3>want direct connectivity, They want to show up. While technology

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<v Speaker 3>in the world evolves, human to human contact is not

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<v Speaker 3>going away.

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<v Speaker 2>Yeah, no, that's true. That's a fair point. But do

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<v Speaker 2>you think it's it's also fair to say that, you know,

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<v Speaker 2>in the old days, and typically you know, funds would

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<v Speaker 2>come here to get capital and then offer investment returns,

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<v Speaker 2>and nowadays socceral wealth funds are saying it's not just

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<v Speaker 2>enough to offer us investment returns.

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<v Speaker 3>Well, I think the whole economic the whole scope of

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<v Speaker 3>economic activity has has really changed enormously. There's no question

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<v Speaker 3>if you go back, you know, you know, my old

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<v Speaker 3>days are a lot older than your old days. But

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<v Speaker 3>if you go back, if you go back, if you

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<v Speaker 3>go back a while, these nations were exporters of capital

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<v Speaker 3>around the world, and they had not built the infrastructure

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<v Speaker 3>of professional investment capabilities here locally, and so they were

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<v Speaker 3>outsourcing those capabilities to institutions like ours and others. Now

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<v Speaker 3>they're really making long term investments to build their economies,

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<v Speaker 3>to allow their populations to participate, to attract investment here,

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<v Speaker 3>and so what they need, and they've got incredible investment

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<v Speaker 3>infrastructures here localized on the ground. What they need or

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<v Speaker 3>ideas What they need are liquidity and capital. What they

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<v Speaker 3>need is strategic initiatives. And so we're just in a

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<v Speaker 3>moment in time where they have the capacity to do

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<v Speaker 3>many more interesting things to.

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<v Speaker 1>Build their economies.

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<v Speaker 3>Think about Saudi Arabia here in the kingdom, thirty five

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<v Speaker 3>million people. You know, there's an enormous opportunity given that

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<v Speaker 3>population to continue to expand the economic activity on a

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<v Speaker 3>localized basis here, and they're looking for partners that can

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<v Speaker 3>help drive them.

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<v Speaker 2>Do you think alternates of assets are going to pick

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<v Speaker 2>up here?

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<v Speaker 3>This part of the world has always allocated a significant

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<v Speaker 3>portion of their surpluses to investing in privates. If what

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<v Speaker 3>you're asking is will there be interesting investment opportunities on

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<v Speaker 3>the ground.

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<v Speaker 1>Here in these local economies.

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<v Speaker 3>Yes, absolutely that as these economies grow, there will be

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<v Speaker 3>more interesting investment opportunities here on the ground that attract

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<v Speaker 3>international capital from around the world. And we've obviously been

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<v Speaker 3>seeing that in a more significant way over the course

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<v Speaker 3>in the last five years.

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<v Speaker 2>Yeah, okay, let's broaden this out a little bit. You know,

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<v Speaker 2>your earnings came through again. You know, it seems as

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<v Speaker 2>though the bank is really firing on all cylinders. Whether

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<v Speaker 2>it's trading, markets, activity, deal making, advisory, wealth management. You know.

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<v Speaker 2>So everything seems to be going quite well at the moment. Now,

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<v Speaker 2>how long do you expect these favorable market conditions to last?

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<v Speaker 3>Four Well, I appreciate that we certainly had a strong

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<v Speaker 3>quarter in our client franchises in terrific shape. But I

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<v Speaker 3>really think that the firm is benefiting from a bunch

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<v Speaker 3>of strategic decisions that we made five, six, seven years

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<v Speaker 3>ago to reposition the firm for growth, to really grow

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<v Speaker 3>our core business of investment banking and markets, put more

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<v Speaker 3>financial resources into the business so that we could take

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<v Speaker 3>more wallet share with our clients and be in a

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<v Speaker 3>position to better serve our clients as they were increasingly active,

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<v Speaker 3>and also to pull a group of businesses together to

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<v Speaker 3>create our asset and wealth management platform, which now supervises

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<v Speaker 3>three and a half trillion dollars. We've said publicly we

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<v Speaker 3>think it can grow in terms of its durable revenue

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<v Speaker 3>high single digits. It's growing better than that, and the

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<v Speaker 3>combination of those activities has materially uplifted the returns of

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<v Speaker 3>the firm. So the environment is conducive at the moment.

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<v Speaker 3>There will be times when the environment you know, is

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<v Speaker 3>a little less conducive. We live in a cyclical world,

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<v Speaker 3>but we think we have the firm position that over

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<v Speaker 3>the next five ten years, we can continue to grow

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<v Speaker 3>our earnings, grow our client footprint, and continue to compete

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<v Speaker 3>at the highest levels and the businesses that we're in.

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<v Speaker 2>So one thing I was thinking about this morning. You know,

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<v Speaker 2>if you just took a snapshot of where everything is trading,

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<v Speaker 2>you have equities at all time highs. You have you know,

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<v Speaker 2>US economy tracking north of three percent. If you look

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<v Speaker 2>at the real time indicators, you've got inflation at three

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<v Speaker 2>percent as well. And yet somehow the FED are going

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<v Speaker 2>to be cutting interest rates by twenty five basis points tomorrow.

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<v Speaker 2>Do you see this as the beginning of a sequential

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<v Speaker 2>easing cycle or just more of an insurance cut?

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<v Speaker 3>What I what I would say with respect to the FED,

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<v Speaker 3>is the Fed, you know, world cut rates tomorrow and

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<v Speaker 3>then we'll see I know, the can censuses. You'll get

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<v Speaker 3>another cut before the end of the year. But the

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<v Speaker 3>policy rate has been higher. I think they're looking to

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<v Speaker 3>move more toward neutral, and so we'll take a step

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<v Speaker 3>in that direction.

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<v Speaker 1>But I think the FED.

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<v Speaker 3>Always is an observer of what's going on in the

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<v Speaker 3>real time economy. The real time economy can shift very quickly.

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<v Speaker 3>At the moment, I would say the US economy is

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<v Speaker 3>in quite good shape.

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<v Speaker 1>But I wouldn't. I wouldn't jump forward.

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<v Speaker 3>There are lots of forward prognostications about the path of

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<v Speaker 3>interest rates. I would just highlight mostly, you know, i'd

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<v Speaker 3>look at the moment, you can project forward. But just

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<v Speaker 3>because there's a forward projection, it doesn't mean that's why

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<v Speaker 3>where we'll wind up.

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<v Speaker 1>There's a lot of uncertainty.

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<v Speaker 2>Do you believe that this is a case shaped economy?

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<v Speaker 2>Lots of academic circles have been talking about that, and

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<v Speaker 2>since that, you know, upper income earners seem to be thriving,

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<v Speaker 2>whereas lower income earners are struggling to keep up with

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<v Speaker 2>inflation and they're worried about potential job cuts to come.

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<v Speaker 1>I wouldn't. I wouldn't use that term.

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<v Speaker 3>But what I would say is businesses that are particularly

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<v Speaker 3>sensitive to lower income or paycheck to paycheck consumers have

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<v Speaker 3>been a little softer. And I would say, you know,

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<v Speaker 3>consumers that our paycheck to paycheck feel more pressure in

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<v Speaker 3>an environment with three percent inflation, and so there's no

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<v Speaker 3>question inflation is very, very difficult for people who live

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<v Speaker 3>paycheck to paycheck, and so it's something I think we

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<v Speaker 3>have to watch very carefully, you know. I know there's

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<v Speaker 3>been progress from where we were a few years ago

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<v Speaker 3>on inflation, but it's important that we get inflation back

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<v Speaker 3>to target because in any environment where it runs hotter,

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<v Speaker 3>certainly people in that income strata feel it more acutely.

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<v Speaker 3>But I'd still say overall, the US consumer is in

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<v Speaker 3>good shape. Most of the data that I see around

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<v Speaker 3>the US consumer is still quite constructive. But I think

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<v Speaker 3>you're highlighting something that needs to be watched carefully.

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<v Speaker 1>Yeah.

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<v Speaker 2>Another thing that needs to be watched carefully is perhaps,

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<v Speaker 2>you know, the credit situation. A couple of weeks ago,

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<v Speaker 2>we were talking about Tricolor first brands. You know, one

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<v Speaker 2>of your peers in the industry described there being cocker,

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<v Speaker 2>which is potentially cockroaches around. I don't know if you

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<v Speaker 2>know there's a certain insect reference that you want to

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<v Speaker 2>pick up on, but ultimately, you know, how worried are

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<v Speaker 2>you about some of these individual idiosyncratic credit incidents actually

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<v Speaker 2>becoming systemic.

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<v Speaker 3>I would put the the three situations that you mentioned

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<v Speaker 3>in the category at the moment of idiosyncratic events. But

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<v Speaker 3>what I would highlight is I think there's a great

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<v Speaker 3>opportunity for people that are in credit businesses and are

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<v Speaker 3>deploint significant capital as lenders and credit businesses to look

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<v Speaker 3>at the procedures, the practices, their underwriting standards, look through

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<v Speaker 3>their portfolio, and really take a strong evaluation of where

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<v Speaker 3>they are. You can't separate the fact that we've been

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<v Speaker 3>in a very, very long easy credit cycle, one of

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<v Speaker 3>the longest I've seen in my career, without a real

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<v Speaker 3>credit pullback, without a without you know, an economic environment

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<v Speaker 3>that's really put an enormous amount of pressure on credit.

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<v Speaker 3>And in that context, credit spreads are historically tight, and

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<v Speaker 3>I know at some point there will be a credit cycle.

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<v Speaker 3>It will probably come at a period of time when

0:11:07.000 --> 0:11:09.840
<v Speaker 3>the economy slows more acutely or there's some sort of

0:11:09.840 --> 0:11:13.000
<v Speaker 3>a macro event that changes confidence we have in growth

0:11:13.040 --> 0:11:15.560
<v Speaker 3>in the trajectory of the economy. And when that happens,

0:11:15.559 --> 0:11:18.679
<v Speaker 3>given the lossity of lending activity, there will be losses

0:11:18.720 --> 0:11:22.120
<v Speaker 3>and credit and those losses will be felt across the system.

0:11:22.559 --> 0:11:26.360
<v Speaker 1>But that's different than a systemic, you know, a systemic crisis.

0:11:26.360 --> 0:11:29.600
<v Speaker 1>And I don't see anything in the context of a

0:11:29.679 --> 0:11:30.480
<v Speaker 1>handful of.

0:11:30.440 --> 0:11:33.520
<v Speaker 3>Bad credit situations, it's leading me to say that we

0:11:33.559 --> 0:11:34.720
<v Speaker 3>have a systemic.

0:11:34.280 --> 0:11:35.360
<v Speaker 1>Issue around the corner.

0:11:35.679 --> 0:11:40.680
<v Speaker 3>Unfortunately, you know, lenders make mistakes. There is fraud and markets,

0:11:41.679 --> 0:11:44.000
<v Speaker 3>and you know that's something that is lenders we off

0:11:44.040 --> 0:11:45.840
<v Speaker 3>to try to protect against. But we should not be

0:11:46.440 --> 0:11:48.400
<v Speaker 3>fooled by the fact that this is a very robust

0:11:48.440 --> 0:11:50.560
<v Speaker 3>credit environment. Credit spreads are tight, and when we do

0:11:50.600 --> 0:11:52.760
<v Speaker 3>have a cycle, which probably will come when there's an

0:11:52.800 --> 0:11:55.320
<v Speaker 3>economic slow down, there will be losses and we'll feel

0:11:55.320 --> 0:11:56.200
<v Speaker 3>that across the economy.

0:11:56.280 --> 0:11:58.520
<v Speaker 2>Yeah, and that's trickling down to private credit as well.

0:11:58.520 --> 0:12:00.840
<v Speaker 2>We spoke about that a year ago, and I just

0:12:00.840 --> 0:12:03.880
<v Speaker 2>wonder whether you think the easy money, so to speak,

0:12:04.000 --> 0:12:06.880
<v Speaker 2>in private credits, those days are behind us now, just

0:12:06.880 --> 0:12:08.880
<v Speaker 2>because of you know, how much interest is mean and

0:12:08.920 --> 0:12:10.319
<v Speaker 2>how much spreads have compressed there.

0:12:10.600 --> 0:12:11.920
<v Speaker 1>I don't.

0:12:12.040 --> 0:12:14.240
<v Speaker 3>I don't think about when I think about lending, I don't.

0:12:14.400 --> 0:12:16.960
<v Speaker 3>I don't think about you know, easy money. You know,

0:12:17.080 --> 0:12:19.679
<v Speaker 3>lending is an activity, whether it's private credit or it's

0:12:19.720 --> 0:12:23.640
<v Speaker 3>banks lending activity. Lending is a through the cycle activity.

0:12:24.120 --> 0:12:27.920
<v Speaker 3>There's no question when spreads are tight, you actually learn

0:12:28.000 --> 0:12:32.040
<v Speaker 3>earn lower relative returns. But the real alpha for credit

0:12:32.080 --> 0:12:34.920
<v Speaker 3>market participants comes in the tough cycles when you have

0:12:34.960 --> 0:12:38.360
<v Speaker 3>to restructure credits. You have to have more conviction to

0:12:38.559 --> 0:12:41.120
<v Speaker 3>enter credits because you can earn higher returns. And so

0:12:41.160 --> 0:12:44.760
<v Speaker 3>the real alpha in long cycle credit investing comes for

0:12:44.960 --> 0:12:47.920
<v Speaker 3>being able to manage not just at times when credit

0:12:48.000 --> 0:12:50.480
<v Speaker 3>is credit spreads are tight, but also when there's a

0:12:50.480 --> 0:12:53.840
<v Speaker 3>difficult cycle. And so, you know, I don't think about

0:12:53.840 --> 0:12:55.679
<v Speaker 3>it easy money. If you're a lender, you're a lender.

0:12:55.760 --> 0:13:00.280
<v Speaker 3>You participate, and you hopefully have good underwriting standards, take

0:13:00.320 --> 0:13:02.880
<v Speaker 3>good reserves, and so when there is economic pressure and

0:13:02.920 --> 0:13:06.240
<v Speaker 3>there are losses, you can smooth through the cycle your

0:13:06.280 --> 0:13:07.520
<v Speaker 3>returns to a reasonable place.

0:13:07.559 --> 0:13:08.560
<v Speaker 1>And that's what good lenders do.

0:13:08.679 --> 0:13:11.160
<v Speaker 2>Okay, so we've talked about equities fed the credit. Let

0:13:11.200 --> 0:13:12.840
<v Speaker 2>me ask you about the dollar. The dollar, you know,

0:13:12.960 --> 0:13:16.319
<v Speaker 2>is done almost ten percent a year. Today has been

0:13:16.720 --> 0:13:19.520
<v Speaker 2>a challenging year for the USD People who are questioning

0:13:19.559 --> 0:13:23.440
<v Speaker 2>this theme of US exceptionalism. Do you worry that the

0:13:23.559 --> 0:13:26.480
<v Speaker 2>US is perhaps somehow losing its relative status?

0:13:26.760 --> 0:13:28.839
<v Speaker 1>I don't. I think the US.

0:13:28.880 --> 0:13:32.119
<v Speaker 3>I think US pre eminence, especially from an investment perspective,

0:13:32.559 --> 0:13:35.120
<v Speaker 3>is a theme that's still firmly in place that you

0:13:35.160 --> 0:13:37.320
<v Speaker 3>can walk around here and talk to capital allocators that

0:13:37.360 --> 0:13:38.880
<v Speaker 3>are here from all over the world and they're not

0:13:39.320 --> 0:13:43.840
<v Speaker 3>fundamentally changing their allocation, you know, across the globe. And

0:13:43.840 --> 0:13:46.480
<v Speaker 3>if you think about what are the more interesting places

0:13:46.480 --> 0:13:48.440
<v Speaker 3>in the world to invest at this point in the time,

0:13:48.480 --> 0:13:50.800
<v Speaker 3>the US is still at the top of the list

0:13:50.800 --> 0:13:53.160
<v Speaker 3>and is the largest, most important economy, the largest most

0:13:53.160 --> 0:13:55.560
<v Speaker 3>important tech innovation center in the world. You know, I

0:13:55.559 --> 0:13:58.280
<v Speaker 3>think that's firmly in place. The dollar has been softer

0:13:58.360 --> 0:14:00.280
<v Speaker 3>this year, the variety of reasons for it, but a

0:14:00.320 --> 0:14:02.560
<v Speaker 3>perspective would be it's certainly much stronger than it was

0:14:02.600 --> 0:14:05.320
<v Speaker 3>ten fifteen years ago when we saw, for example, you know,

0:14:05.840 --> 0:14:09.319
<v Speaker 3>dollar forty, you know, euro dollars. So everything's got to

0:14:09.320 --> 0:14:12.400
<v Speaker 3>be put through a longer term lens when you think

0:14:12.400 --> 0:14:14.480
<v Speaker 3>about the dollar, But don't I don't worry about the

0:14:14.600 --> 0:14:19.160
<v Speaker 3>US and it's pre eminence as an attractive place to invest,

0:14:19.200 --> 0:14:22.200
<v Speaker 3>the growth in that economy, the tech innovation ecosystem, you know,

0:14:22.240 --> 0:14:23.480
<v Speaker 3>I think the US is a is.

0:14:23.480 --> 0:14:24.280
<v Speaker 1>In a pretty good place.

0:14:24.320 --> 0:14:26.080
<v Speaker 2>Okay, David, I've got to round up asking you about

0:14:26.120 --> 0:14:30.520
<v Speaker 2>AI and sort of how you're incorporating it incorporating it

0:14:30.600 --> 0:14:34.400
<v Speaker 2>into your bank operations. You know, are you seeing efficiency

0:14:34.400 --> 0:14:34.840
<v Speaker 2>gains there?

0:14:35.240 --> 0:14:35.520
<v Speaker 1>Sure?

0:14:35.600 --> 0:14:38.840
<v Speaker 3>This is this is an enormous opportunity for every enterprise

0:14:38.880 --> 0:14:40.160
<v Speaker 3>in the world, and I think it's one of the

0:14:40.200 --> 0:14:43.760
<v Speaker 3>reasons why I'm very excited about growth in the world

0:14:43.840 --> 0:14:45.600
<v Speaker 3>over the course of the next few years, because I

0:14:45.600 --> 0:14:50.400
<v Speaker 3>think the productivity opportunity for enterprises large, even to very

0:14:50.480 --> 0:14:55.240
<v Speaker 3>very small businesses is enormous. We made an announcement last

0:14:55.240 --> 0:14:57.520
<v Speaker 3>week or ten days ago around our earnings about Golden

0:14:57.560 --> 0:15:00.720
<v Speaker 3>Sacks one Golden Sacks three point zero, where we laid

0:15:00.720 --> 0:15:05.120
<v Speaker 3>out six things that we wanted to accomplish around better

0:15:05.160 --> 0:15:10.760
<v Speaker 3>client service, more efficiency, and ability to really improve our.

0:15:10.720 --> 0:15:12.240
<v Speaker 1>Risk management across the firm.

0:15:12.680 --> 0:15:15.920
<v Speaker 3>And we are looking at a handful of processes where

0:15:15.960 --> 0:15:20.280
<v Speaker 3>we can really re underwrite these processes, create automation and efficiency,

0:15:20.320 --> 0:15:22.960
<v Speaker 3>but not just to take cost out, to allow us

0:15:23.000 --> 0:15:24.320
<v Speaker 3>to invest in growth.

0:15:24.040 --> 0:15:24.640
<v Speaker 1>In the business.

0:15:25.040 --> 0:15:27.480
<v Speaker 3>And so this is a theme that I think most

0:15:27.520 --> 0:15:30.880
<v Speaker 3>CEOs of large enterprises are looking closely at, and the

0:15:30.880 --> 0:15:34.760
<v Speaker 3>productivity benefit to the economy broadly as people execute on

0:15:34.800 --> 0:15:38.880
<v Speaker 3>this is very meaningful. It's starting, We're still early, but

0:15:38.960 --> 0:15:41.000
<v Speaker 3>I think over the next twenty four to thirty six months,

0:15:41.040 --> 0:15:43.160
<v Speaker 3>you're going to see real benefits from these efforts.

0:15:43.440 --> 0:15:46.720
<v Speaker 2>Is AI going to replace entruy level jobs, Analyst dolls.

0:15:46.680 --> 0:15:48.120
<v Speaker 1>I mean will it will replace?

0:15:48.360 --> 0:15:52.840
<v Speaker 3>It will change certain jobs, the same way technology has

0:15:52.920 --> 0:15:56.960
<v Speaker 3>changed certain jobs for my entire forty two years in

0:15:57.000 --> 0:16:00.480
<v Speaker 3>the business. So you think back when I started as

0:16:00.480 --> 0:16:02.360
<v Speaker 3>an analyst, I was required to do something.

0:16:02.360 --> 0:16:03.440
<v Speaker 1>I had to go to the library, I had to

0:16:03.440 --> 0:16:05.680
<v Speaker 1>go to the microfiche, I had to get data. It

0:16:05.720 --> 0:16:06.360
<v Speaker 1>took hours.

0:16:06.400 --> 0:16:08.680
<v Speaker 3>Things that take five that take five seconds now, like

0:16:08.720 --> 0:16:12.440
<v Speaker 3>doing a common stock comparison took six hours. Yet we

0:16:12.520 --> 0:16:16.200
<v Speaker 3>still have lots of very productive people doing more to

0:16:16.280 --> 0:16:18.880
<v Speaker 3>serve our clients. I think the lens that you have

0:16:18.920 --> 0:16:23.760
<v Speaker 3>to look at is technology is always changing work, changing jobs,

0:16:24.080 --> 0:16:27.000
<v Speaker 3>adjusting the mix of different kinds of jobs. But it

0:16:27.080 --> 0:16:30.920
<v Speaker 3>doesn't mean that businesses don't grow, economies don't grow, and

0:16:31.000 --> 0:16:34.560
<v Speaker 3>opportunities for very productive people don't grow. And I don't

0:16:34.600 --> 0:16:36.920
<v Speaker 3>think it's going to be different this time, although I

0:16:36.920 --> 0:16:39.080
<v Speaker 3>do think there are jobs that will be different, and

0:16:39.120 --> 0:16:41.880
<v Speaker 3>there are jobs that will go away, but that doesn't

0:16:41.920 --> 0:16:43.240
<v Speaker 3>mean new jobs won't be created.

0:16:43.400 --> 0:16:45.400
<v Speaker 2>Take me back to my banking days, M D would

0:16:45.440 --> 0:16:47.800
<v Speaker 2>send me an email at six pm on a Friday

0:16:47.880 --> 0:16:50.680
<v Speaker 2>to pitch a fix a pitch book by Monday morning,

0:16:50.720 --> 0:16:52.360
<v Speaker 2>and you know that your weekend was going to be good.

0:16:52.480 --> 0:16:55.240
<v Speaker 3>But that's long gone yet people are still working very

0:16:55.280 --> 0:16:56.840
<v Speaker 3>hard on the kind of work they do changes.

0:16:56.880 --> 0:16:58.880
<v Speaker 1>And here's the thing that I think is really really important.

0:17:00.080 --> 0:17:03.560
<v Speaker 3>Yet. You can teach investment bankings. You know this, you

0:17:03.560 --> 0:17:05.440
<v Speaker 3>are an investment banker at Golden Sex. You can teach

0:17:05.520 --> 0:17:11.400
<v Speaker 3>investment banking skills, but you can't teach relationship building, trust

0:17:13.160 --> 0:17:18.680
<v Speaker 3>advice giving. That's a apprenticeship, skill based business, and that's

0:17:18.680 --> 0:17:22.000
<v Speaker 3>something that I think is very sustainable. But technology tools

0:17:22.240 --> 0:17:24.680
<v Speaker 3>make the people that do that much much more productive.