00:00:00 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg Surveillance Podcast. Catch us live weekdays at seven am Eastern on Apple CarPlay or Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube. 00:00:27 Speaker 2: And this is a joy. It's always good to see Joseph Lavorna, Chief Economists SMBC and Eco Securities. But even better with the incredibly smart note you have magical thinking. You are brutal the idea we're coming back to two percent inflation, It's just not going to happen. You go out to twenty twenty eight and say FED central tendencies are still elevated. Are we running a FED policy now for elevated inflation? 00:00:58 Speaker 3: Running FED policy on three percent? Under the economy, which is housing, it's the only area that's really weak, Tom. 00:01:03 Speaker 4: Everything else is very strong. 00:01:05 Speaker 3: If you look at the consumer, you're going to get huge building and structure as commercial structures. 00:01:09 Speaker 4: Because of the One Big. 00:01:09 Speaker 3: Beautiful Bill, which has temporary expensing for factories, you could expense a factory the year you break ground. 00:01:16 Speaker 4: That's going to expire at the end of twenty second. 00:01:18 Speaker 3: Johnson to some extent, and of course you've got massive capex. So what's weak And the note in the history, show if you're above tread if you're above two percent on inflation, show me when it falls. Give me an example when it falls. It's not going to fall unless something happens. And in the past it's always been the Fed needs to increase interest rates and raise the price of credit and money. 00:01:41 Speaker 4: So the magical thinking part comes. 00:01:44 Speaker 3: You could say, as much as you want, it's going to go back to two, but the words alone aren't going to do it. 00:01:49 Speaker 2: I'm going to say this with great respect. Joe Olivarne is the only one I've seen that's worked within the Trump administration that basically speaks English convey the president's economic theme in Lavornia. Clarity right now. 00:02:04 Speaker 3: Well, the economic theme is to have business friendly taxes, low regulation, and put up a tariff barrier so as to encourage foreign Catholic. 00:02:13 Speaker 2: Tariffy too high. 00:02:15 Speaker 4: It's not clear we're going to get back to thirteen percent. No. 00:02:18 Speaker 3: Now, if tariff's been implemented the way maybe they should have been, we could debate that. I don't have a problem with tariffs, So tariffs are I argue are a bipart is an issue, and in fact, regardless of what happens in the future, if the Democrats come in, I doubt they'll remove many of those terror to them. 00:02:34 Speaker 4: We need the money, Tom, we need the money. 00:02:36 Speaker 3: And look, Bill Clinton in the early nineties ran on the possibility of essentially an industrial policy, and those were bad words thirty odd years ago. But the pendulum politically has switched, and China now is a peer, competitors and a strategic adversary. 00:02:52 Speaker 2: Joel in eighteen ninety working for William mckin. 00:02:55 Speaker 5: I can see it, Damian says with Jill Lavorn, Joe in your last Noe mad Thinking. You know, you mentioned that the longer the FED weights, the higher the probability rates will have to rise further in the future, right, And I said that earlier on this show, earlier today, and I agree with you. But then I've got Ryan from Atlanta calling on me saying, how does the FED raising rates, you know, you know, affect a supply shock? How does that matter? And you know, how would you respond to that? 00:03:20 Speaker 3: First of all, if you go back to last year, the FED was cutting rates seventy five bases points in the fourth quarter, because it was almost September October December, they were worried about downside risks to the labor market, and the inflation outlook was still relatively benign. You could tell the story. It was going down fast forward seven months later. We don't need those three emergency cuts, the last cut by Jake Powley. They were three descents against those cuts. So if you're setting monetary policy purely to the demand side, and then you have a supply issue which could only further ingrain some of those concerns about inflation, you're supposed to a minimum take back those those cuts. 00:03:56 Speaker 5: I don't disagree with you. And now you look at the bond market maybe waking up to the reality of that. I mean not just the US treasuries market, but buns jgb's. I mean, what are your thoughts on the rise and nominally yields we're seeing across the whole of you know, G three, if not the world, and what's driving that? Is it fiscal is it something else? 00:04:14 Speaker 3: It's partly the fact that for ten years we had zero rates forward guidance that said rates for at zero and a large swaths of the world negative interest rates. 00:04:22 Speaker 4: So we're moving away from that. 00:04:24 Speaker 3: In the US, the rise in reel yields reflects a tremendous demand for capital as it relates to the AI build out and the fact that the US economy relatively is performing well. Rates are supposed to be higher. The equilibrium real rate is higher, so high rates by themselves aren't bad. 00:04:39 Speaker 4: That's where we are. 00:04:40 Speaker 2: To explain the politics of the K shaped economy. People listening to this will say, Joelivorne is talking about the halves who are prospering, so many are not discuss that conundrum when. 00:04:54 Speaker 3: You talk about the Trump policy. It is supposed to work so that the bottom quintile are the ones that thrive and do better in relative terms, and that's what we saw in the first term. The situation that's in the Middle East time, I think has really kind of. 00:05:09 Speaker 4: Up ended the apple Oh, there's no question about it. 00:05:11 Speaker 3: And therefore I was not I'm not a K shaped economy person in sense because I do think that the situation is fluid. There's income mobility, and the regulatory and tax policy of the administration is generally pro growth for these type of people. It's very hard to get good data on those lower income levels. But right now it's open debate. So the k shaped is just people struggling because they're real income is. 00:05:34 Speaker 2: I got to get to Martha Gimble, the budget lab at Yale, who pays tariffs. The fact is Americans pay a nine or twelve or thirteen percent tariff. Right. 00:05:44 Speaker 3: It depends sometimes yes, sometimes no, It depends on the tariffs. 00:05:48 Speaker 4: The idea, though, is to encourage capital to. 00:05:50 Speaker 3: Come in to create high paying jobs in them. 00:05:55 Speaker 4: Not yet, we don't know yet. The answers don't know. We don't know. I mean. 00:06:00 Speaker 3: Tom i Asso see Secretary Best made a good point, like the tariffs are supposed to work like a melting ice cube. Like you get the capital command, you build the tax spase, you create these better jobs, and then over time you'll lose the revenue from the tariffs. The terraffs won't be the driver. It's the growth in the domestic economy that drives it. 00:06:17 Speaker 2: We gotta go, Joeliver, and you thank you so much for coming in. I love when somebody comes in and says I don't know. 00:06:22 Speaker 5: I love when Joe does for me. 00:06:25 Speaker 2: Everybody gets certitude, you know, you know, we believe it's like gave fam DEVI. It's the same way. I don't know, Joeliver, you think is psychis BC really appreciate it? Stay with us. More from Bloomberg Surveillance coming up after this. 00:06:46 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch US Live weekday afternoons from seven to ten am Eastern Listen on Applecarplay and Android Otto with the Bloomberg Business app, or watch US Live on YouTube. 00:07:00 Speaker 2: Emily Rolling with us CO chief investment strategist, Manual Life and all of the John Hancock combine as well. She has been spectacular about saying be in the market. Emily. I just did the fancy math using the Bloomberg Professional Service. We have a drawdown on the SPX. We have corrected just under three percent, two point eight percent. We've pulled back. It's a hillacious pullback. If I'm just able to get back to my long term moving average when I use I need to go down another four point two percent. Even with that back to my long term support, it's not a correction. How much of a bullmarket is this. 00:07:42 Speaker 6: It's a massive bull market that is fueled by some of the most extraordinary earnings that we've seen in modern history. Just looking at this quarter. This morning, reported earnings growth for the S and P five hundred is coming in. 00:07:54 Speaker 5: It's seventy percent. 00:07:56 Speaker 6: You don't see that outside of coming out of a recession. It's just been remarkable. And also, Tom, this has been a dip buyers dream market. So what happens anytime you see these little mini corrections that the retail investor comes right back in and we continue to see this bullishness, these technical momentum traders buying the dip. 00:08:19 Speaker 2: So we have a select group of guests, you know, institutionally, you know, she's like an old Jed Hancock, new John handcock, cup and bus and I can't keep it straight. But Emily, the bottom line is people are framing out a more long term buoyant GDP because of all this technology. 00:08:36 Speaker 6: Right yep, there's been massive spend on technology. We're also seeing a bit of a fiscal sugar rush hitting the economy right now. You know, outside of the World Cup, which certainly helped, we've got terra free funds. Now we have the one big beautiful bill that's providing tax incentives for companies to invest in capex, which is primarily happening on the AI and data center front. You've got the consumer holding in while you've got this onslought of on shoring activity helping fuel this manufacturing renaissance in the United States. So the economy is holding in much better than was expected. The economic surprise index is elevated right now. The biggest challenges is there a potential hangover from this fiscal sugar rush as we head into the back half of the year, which would put the FED potentially off sides as being a bit more hawkish here than expected. 00:09:29 Speaker 5: Well, there we go, Emily. Back in the beginning of this year, one of the sort of inflation hedges that you were touting was buying utility stocks, right, and we're in this environment where today all we're talking about is rising global bond yields and rising inflation expectations. And then I look at the SMP Utilities Index thirty one stops. All but two of them are up on the year, and most of them in double digits, so you know, and it's a sector that's up eight point two percent year today. Talk to us a little bit about do utilities in your mind, after what looks to be some fantastic performance here today, did they still hold some value for you here. 00:10:00 Speaker 6: Yeah, they do, especially now they've done well over the course of the year. But we are facing this really remarkable environment where there's these two sort of mega forces that are set to collide in the back half of the year. On one hand, you have the bond market pricing in two FED rate hikes, one in September and one in December, so the idea there is that liquidity is going to get pulled out of the system. And on the other hand, you have these massive liquidity needs from an equity market that is frankly overvalued, has been for a while now. So this huge AI boom, this massive need for companies to raise liquidity, is coming at the exact same time where central banks are actually staring hiking down looking into the rest of the year. So I think that could be a potential challenge, which makes more defensive assets really in our view pretty attractive. Utilities are an inflation hedge. They've got income and they're more defensive. So we're still overweighting. 00:10:58 Speaker 2: Emily Rowland with Daniel if John Ancock through what she could be with us today. We welcome all of you across America the way you choose to listen to us, good Morning ninety nine ONEFM, Nathan Hager Radio in Washington ninety to nine FM, The Vista from the New and Old John Hancock extraordinary swarning. Red Sox day off yesterday, Damien day off yesterday, needed a rest, staggering laws we got to begin another fifteen game at wind streak, Damien sasa or with Emily Rowland. 00:11:30 Speaker 5: Well, Emily, I compare the Red Sox to mid caps, and in your last note we were talking about the resilience of mid cap stocks in the face of the recent self talk to our audience a little bit about searching for resilience amid the morass of this week. 00:11:43 Speaker 6: That was a good one. I've been trying to figure out how to fit that fifteen game winning streak into the conversation this morning. So I know Tom is a big Red Sox fan, So thank you for doing that for me, Damien. So mid cap socks and industrials. First of all, midcaps do have a large relative overweight to the austrial sector, which we've been bullish on again given them one big beautiful bill, given the buildout of data centers in the United States, on shoring, et cetera. And when we look at midcaps in inflationary environments, they actually tend to like it. When you think about that industrial as overweight. These are companies that have fixed operating costs. They have large investments in property, plant and equipment, and when inflation rises, they can actually pass those prices onto the end consumer, which is why industrials tend to do well in inflation around two to four percent. So we think that's a great way to think about inflation. They barely budge yesterday, which to us is a key signal. 00:12:38 Speaker 2: Emily twenty seconds. Is real estate up in Boston so stupid priced? Are? 00:12:44 Speaker 4: We're still there? 00:12:46 Speaker 5: But inventory is a problem. 00:12:47 Speaker 6: We're obviously surrounded by the water, so it's more difficult to build out around here. But I would say there is a little bit of a softening there, just not a ton of end. 00:12:55 Speaker 2: Okay, Emily Roland, real estate agent, thank you so annual life for Johnny. She has been great, Folks, Be in the market. Is a message from Emily Roland. Stay with us. More from Bloomberg Surveillance coming up after this. 00:13:19 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live weekday afternoons from seven to ten am Eastern listen on Apple Karplay and Android Otto with the Bloomberg Business app, or watch us live on YouTube. 00:13:32 Speaker 2: We start stronging. We're just talking about Nashville and Vanderbilt with mister sass Hour Karen Murphy with us out of Austin, and there's all these cities around the country where technologically people can feel like there's somewhere in the vicinity of sixth Avenue in fifty fourth Street, I mean Austin's boom and Nashville's boomen. I'm going to talk to Stacy Vanik about Boise at twelve noon is as well. What's the negative of being in Austin versus is being glued into the hub finance New York. 00:14:04 Speaker 7: It's one hundred and five degrees right there, right now. 00:14:08 Speaker 2: That's a serious one. I mean the temperature and all that. But the answer is everybody's moving out to these cities Nancy Teglers and Phoenix. I mean it's. 00:14:18 Speaker 7: Booming, right yeah. 00:14:19 Speaker 4: And it's a lovely city. 00:14:21 Speaker 7: I mean, it's amazing. I spent most of my career here in New York, but Austin is really wonderful, and it's got such a great culture, wonderful music, a lot of outdoor life. 00:14:30 Speaker 2: Okay, that's fine, but to your research note it continues. And I love this, This is original. The S and P is not full of electric companies. It's full of companies that use electricity. That's brilliant. I mean, that's what we're hitging all this. 00:14:45 Speaker 7: Time, right, absolutely, And I think this is such an important lesson When we think about AI. You can believe that AI is in the midst of a massive technological revolution that will change the way that we work, the way that we communicate, and you can be skeptical about the stocks that are most closely tied to it. Ultimately, if AI is great as we all think it is, everyone will benefit, everyone will be using it, everyone will become more productive. 00:15:14 Speaker 5: Well, is now the time to buy AI? I mean, look, you know a lot of these stocks have gotten hit pretty bad. I mean you look at Nvidio. We just had a guest on who is saying, you know, maybe we're at a time here based on earnings, But talk to us about you know, these valuations. At some point, do you ever get a little bit concerned or are these sort of long term you know, close your eyes, put it in your portfolio. You got to own it. 00:15:32 Speaker 7: I think I'm not bearish on these names, but I do think investors need to make sure that they have access to other parts of the market. Right, Eventually, the benefits of all of these gains are going to distribute to other companies as well. Now that doesn't mean that the mag seven are going to turn down. They just may not always be the darlings and the leaders of the market. 00:15:52 Speaker 2: This is just up Michael Gambali and Devi Barbusia for Bloomberg. Blackrock is kicking off, I guess into next week. I don't know. Twelve billion, okay of a data center for Meta Facebook in El Paso, Texas. A single trench is what gets my attention, Damien. It's like a private deal, I guess. And it's just a signal trench out twenty two years. I mean, that's the new finance. 00:16:21 Speaker 5: Well, I mean I said it before, and I kind of am serious when I say this, because you know, I'm just a voyer when I look at the valuations in the stock market generally speaking. But you know the circular nature of the fact that you've got these hyperscalars that are you know, getting into the business, then you know they can actually buy it. You know, and it's just to me, it seems, you know that the funding is very circular and so long as the floodgates are open and there's still a lot of dry powder out there, you know, Bob's I'm sorry, Bruce is your uncle in the sense that you can basically kind of go out, I mean, correct me if I'm wrong, Cara and buy these equities, sort of close your eyes and park them in your portfolio. Or can't you? I mean that's the question. If you had to be defensive in this environment, way do you turn. 00:16:58 Speaker 7: The good news is that there are a lot of places to because this market has been so incredibly concentrated for three and a half years, there are a lot of areas of the market that have been largely ignored. 00:17:08 Speaker 2: People's utilities, right. 00:17:10 Speaker 7: Like all those kind of valuation names small and MidCap, non us developed. I mean, these are all names that investors have kind of left for dead but still have researching earnings power. 00:17:19 Speaker 5: But I mean a lot of those stocks also are treating it near or at all time hives, right. I mean we've seen that the S and P Equal Waights is up. I think it's more than the S and P itself, So you know, you're seeing sort of this broadening out, you know, do you see that continuing as we approach the second half of this year. 00:17:33 Speaker 7: I think we do see that continuing. So take small and midcaps for instance. What you see are that large cap earnings are expected to be really high, but about the same for the second half of the year. Okay, small and MidCap earnings growth is much lower than large cap, but it's accelerating into the second half of the year and valuations to change, right exactly. So I think as that differential narrows, you have an opportunity. 00:17:57 Speaker 2: Are there people in Texas who don't want tech boom? Governor Hokel. Governor Hokel in New York has just said, we're not doing data centers or whatever? Is there anybody is, folks, and for it worth. 00:18:13 Speaker 7: It's very interesting in that you're getting a lot of pushback with in Texas on data centers for similar reasons. Water is a big issue there, right, and so a lot of these data centers are expected to soak up water when you have local residents who are you know, maybe very limited or what they can use. 00:18:28 Speaker 2: Caraen Murphy with US Chief Investment officer at Kestra with Damian Sso. 00:18:32 Speaker 5: So, Carrie, you know, we talk about AI and we talk about the tech boom and all this stuff, and we laugh about it, but when don't we look at the funding markets, just how these hyper scalers have tapped to the market. Tapped the markets this year alone to the tune of something like two hundred and twenty five billion in debt raised via the credit markets here in the US and not only in the US in pounds in swissy, and you know, talk to me a little bit about all that money raised and now the fact that these bonds. I just have robam Scottsdale emailing me basically saying the bonds are trading it now the one hundred year Google bonds are trading a ninety. Well, isn't that a good thing? Doesn't that mean that Alphabet issued bonds at the right point in time to fund the data centerlot. 00:19:07 Speaker 2: Talk to you about. 00:19:08 Speaker 5: Financing differentials and what that means as these companies grow over the long term. 00:19:13 Speaker 7: So I think this is an underappreciated piece of the whole story. And part of the reason is because it's happened so quickly. So these companies have shifted from very high free cash flow levels to needing a lot of cash, and it's happened within a couple of years. What that means is that their balance sheets have also changed significantly. Some of these names actually look more like utilities than they do tech companies in terms of the amount of debt that they have on their cash. So to your question, the important important thing is not necessarily what's happening today, but what happens tomorrow. And if the market starts to presume that these capex numbers need to double over the next couple of years, and that means that they need to come to market even more. 00:19:52 Speaker 2: To your good point, Damien, part of the reason it's priced un yield up on hyperscalers is a general higher rate regime, right now, That's right. Nobody ever mentions. 00:20:02 Speaker 5: That, right, No, it's not the fundamental tenet of why they're investing. You know, it's more You're absolutely right, it's more the impact from higher US treasure yields. And so you know, I ask you this. You know, maybe it hasn't been so great for investors in apple bonds, but certainly you would think that it's going to be good for equi owners over the long term if that use of proceeds goes to the right place. 00:20:20 Speaker 7: Now, that is the big question, right, So how many of those dollars actually get put towards productive ends? And given the size of the dollars, I think what you're saying is the market is pushing back a bit. 00:20:30 Speaker 2: Can I ask you a question at Kestra. John gallob just publishes a brilliant note here at Seaport on the earnings to come over the next five trading days thirty four percent of the s and P five hundred market cap or report explain the impact on the Ancestra investors. I mean that sentence was foreign to me until like five years ago. 00:20:54 Speaker 7: Yeah, so, I mean our investors have very diversified portfolios. But as we've seen the mega cat names become a larger and larger proportion of the SMP, it's become a much more important piece of everyone's portfolio. 00:21:06 Speaker 2: It's okay, though, because they they're a larger part to an extent, because they've. 00:21:12 Speaker 7: Appreciated they're larger for good reasons, thank you, Right, it's not because other things of. 00:21:18 Speaker 2: Ken Will you come back when it's not one hundred and five in Austin. I love to Karen Murphy, chief investment Officer, cool Common collected to New York Keestra Investment Management. I appreciate that. Stay with us. More from Bloomberg Surveillance coming up after this. 00:21:43 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live weekday afternoons from seven to ten am Eastern Listen on Applecarplay and Android Otto with the Bloomberg Business app, or watch us live on YouTube. 00:21:56 Speaker 2: Monica Burra has arguably the most do resume of anyone I know, Morgan Stanley Wealth Management, service to the City of New York, all sorts of abilities over the years, including at Fitch is Well. I can't get the Monday, call it the Monica Guerra uncertainty. Now between the markets, the war are politics as well. Don't tell me about twenty twenty seven. What do we look like on Monday? 00:22:25 Speaker 8: On Monday, I think we're gonna look much the same, except a little more pressured, especially in the in the with thinking about oil prices and the potential for a pass through to headline CPI that's the biggest thing that I'm focusing on right now, Little Blue button. 00:22:41 Speaker 4: Sorry about that. 00:22:42 Speaker 5: Monica. When President Trump says that the Iranians want to do a deal, who's he talking about? When he talks about the Iranians. I mean, he's certainly not talking about Kamenie or the Secretary of Nuclear Policy, and deletely over there, he's probably talking about Parliament, right, I mean, who is he really talking about? 00:22:59 Speaker 8: So when we're thinking about who he's talking about and the known players in the room are, our intel is a little bit hazy, right. We all wish we had that insight. I think that the administration is trying to nail it down, but the players that were part of the original JPCA on the US side are no longer the same players. But you're still looking at, you know, folks like Rubio and others trying to nail down those details, at least from the US perspective. Now, who's in the room. We don't have that information. 00:23:30 Speaker 5: So you rightly point out, though that fifty nine percent of Americans are now opposed to the conflict, And you know, your call, Morgan Stanley's call is for one of a gridlock Congress in twenty twenty seven. Talk to us about the midterms, talk to us about what drives that outlook. 00:23:42 Speaker 8: So when we're thinking about midterm outlook, just historically the sitting president's party loses about thirty seats. Then you add in the potential for an oil shock, which we have been experiencing. So if you have an increase in gas prices from the prior January so January twenty twenty five to this year through this year, you're looking at average seat losses of thirty two versus six in a normal year where you don't have that gas price component. So affordability is huge here. Layer in energy housing, you've got an uphill climb. 00:24:14 Speaker 2: I would suggest, Monica, we're addicted to stimulus. We've gone through I mean some will say three stimuli with COVID, including the back end Biden stimulus is it's called formally in the literature, and then many other new stimuli with with President Trump as well. Are we stimulus out? 00:24:32 Speaker 8: I don't think we're stimulus out. From a political perspective, you cannot underestimate the Congress's ability to spend the justice is one point one trillion on NDAA, a ninety five billion additional to the US or on more right, this is a weird question. 00:24:49 Speaker 2: If we do military spending for Iran. Do you call that stimulus? 00:24:54 Speaker 8: I definitely call it stimulus when you're thinking about who's getting the contracts as a US based contract and so while it doesn't have necessarily the largest economic multiplier, there is still a multiplier there that is meaningful for the US economy. 00:25:07 Speaker 5: You know, Monica, you talk about affordability being the key issue into these midterms, and you talk about gasoline prices specifically, you know, and then I think about Big Oil and they're going to be reporting earning Chevron an excellon mobile on Friday of next week, and I think about, Wow, what would happen if they just blow it out like the rest of the market here. I mean, people going to be focused on that at all. 00:25:26 Speaker 8: I think they have to be right when you're thinking about where the pressures are coming from. Let's just I mean, even if we move away from big oil and we just stay with an energy or you think about the negatives for the electorate, what's necessarily good for the energy companies isn't great for the voter. And that's a really interesting tension, right that the GP is trying to get a handle on. 00:25:47 Speaker 5: You get one more well, I mean, look, I'm just thinking about affordability issues. The other area is obviously housing, right you can't. 00:25:52 Speaker 2: Afford thank you, thank you, thank you, thank you. 00:25:55 Speaker 5: And the real estate sector here I mean reads, what have you? I mean, look, they're diving in yielding. They continue to perform gas. I mean, they're not a great performer, but certainly compared to fixed income, they haven't been so bad right in terms of a risk adjusted return to Monica, you know, way do you hide out? How do you get defensive when you got two of these key sort of well maybe not oil, but defensive sector is kind of flashing right here or Amber, at. 00:26:13 Speaker 8: Least for me when I'm thinking about where to go, you got to look to utes because even though there's pressure and energy, you have to remember that and the unpopularity with data centers, you have to remember that they are a big part of that build out that is going to happen, regardless of the electorate being you know, unfavorable. 00:26:30 Speaker 2: Right now, Michael, thinking so much Monica? Where was now this morning? Your executive? You'red a head of headaches for all learning Stanley Wealth Benja, we have the greatest sympathy for you as you staggered the first Tuesday of November. 00:26:44 Speaker 4: It's going to be fun. 00:26:46 Speaker 2: You're working on your post Labor Day forty two page essay, right, I definitely am. 00:26:52 Speaker 4: We're already in the works. People. 00:26:54 Speaker 2: People think on the street you take August off. No, you developed for Carble Tunnel, shorty, Where did you know? 00:27:00 Speaker 8: I'm grateful for August receas. But that's about all I get. 00:27:03 Speaker 2: So Mondica, thank you so much. Monica Gerr with Margaret Stanley. 00:27:07 Speaker 1: This is the Bloomberg Surveillance podcast, available on Apples, Spotify, and anywhere else you get your podcasts. Listen live each weekday, seven to ten am Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal