1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day, we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,560 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,479 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:24,239 Speaker 1: at Bloomberg dot com slash podcast. Coming into a lot 7 00:00:24,239 --> 00:00:26,920 Speaker 1: of strategists, a lot of fund managers were saying, get 8 00:00:26,960 --> 00:00:30,280 Speaker 1: ready for increased of volatility, and boy, it seems like 9 00:00:30,360 --> 00:00:32,199 Speaker 1: at least for their first four weeks, they were right. Here, 10 00:00:32,200 --> 00:00:35,920 Speaker 1: we've got a vix north of thirty one, we've got 11 00:00:35,920 --> 00:00:38,239 Speaker 1: read on the screen here today, let's check in uh 12 00:00:38,240 --> 00:00:40,800 Speaker 1: and see what we can expect going forward. Liz Young, 13 00:00:41,520 --> 00:00:45,159 Speaker 1: she's head of investment strategy at so Far. Liz, thanks 14 00:00:45,200 --> 00:00:47,879 Speaker 1: so much for joining us here. I guess one of 15 00:00:47,920 --> 00:00:50,560 Speaker 1: the big issues you know that this market is trying 16 00:00:50,600 --> 00:00:54,000 Speaker 1: to discount is the Federal Reserve. We know they're gonna 17 00:00:54,040 --> 00:00:56,880 Speaker 1: raise rates, but now the question is by how much? 18 00:00:56,960 --> 00:01:01,600 Speaker 1: How quickly? How do you guys think about that? Yeah? 19 00:01:01,640 --> 00:01:03,320 Speaker 1: You know, I think first of all, you have to 20 00:01:03,360 --> 00:01:06,560 Speaker 1: look at what the expectations are right now. And the 21 00:01:06,640 --> 00:01:09,480 Speaker 1: reality of it is, we haven't moved yet, right. The 22 00:01:09,520 --> 00:01:12,520 Speaker 1: Fed hasn't done anything yet, and they also haven't been 23 00:01:12,920 --> 00:01:15,520 Speaker 1: all that clear about what they expect to have to 24 00:01:15,600 --> 00:01:18,960 Speaker 1: do as far as rate hikes go. So it continues 25 00:01:19,040 --> 00:01:22,240 Speaker 1: to be an uncertain and sort of convoluted picture, which 26 00:01:22,280 --> 00:01:25,199 Speaker 1: is why the market is having so much trouble digesting 27 00:01:25,200 --> 00:01:27,440 Speaker 1: it on a day to day basis. I think what 28 00:01:27,640 --> 00:01:31,880 Speaker 1: actually happens is that they start to hike rates in 29 00:01:32,040 --> 00:01:34,200 Speaker 1: spring of this year, but they're going to have to 30 00:01:34,200 --> 00:01:39,120 Speaker 1: wait and see how much it affects things like inflation expectations, 31 00:01:39,120 --> 00:01:41,520 Speaker 1: how much it affects things like the bond market. I 32 00:01:41,520 --> 00:01:43,280 Speaker 1: think everybody's really hung up on how it's going to 33 00:01:43,360 --> 00:01:45,959 Speaker 1: affect the equity market. But they're probably going to watch 34 00:01:45,959 --> 00:01:50,000 Speaker 1: the bond market closer and then decide how much further 35 00:01:50,080 --> 00:01:51,880 Speaker 1: they need to go with hikes through the rest of 36 00:01:51,920 --> 00:01:56,200 Speaker 1: the year, so they'll remain basically data dependent UM, but 37 00:01:57,360 --> 00:02:00,600 Speaker 1: I wonder how much they will care about they market. 38 00:02:00,840 --> 00:02:05,680 Speaker 1: We were UM interviewing Greg Jensen from UM Bridgewater the 39 00:02:05,720 --> 00:02:08,040 Speaker 1: other day and he said he thinks right now that's 40 00:02:08,080 --> 00:02:11,400 Speaker 1: really not their main concern. In fact, um, the equity 41 00:02:11,440 --> 00:02:14,080 Speaker 1: market they're probably a lot of speculative bubbles that have 42 00:02:14,120 --> 00:02:15,919 Speaker 1: been blown up there that the Fed wooden't mind seeing 43 00:02:16,000 --> 00:02:20,120 Speaker 1: deflated a little bit. Yeah, you know, I don't know 44 00:02:20,160 --> 00:02:24,600 Speaker 1: that they're tasked with necessarily worrying about the speculative bubbles, 45 00:02:24,639 --> 00:02:27,920 Speaker 1: but I would agree that they're not seeing the equity 46 00:02:27,919 --> 00:02:31,520 Speaker 1: market as their first priority. And I said this on 47 00:02:31,560 --> 00:02:33,680 Speaker 1: a show earlier this week. The Fed doesn't care about 48 00:02:33,680 --> 00:02:36,280 Speaker 1: our feelings anymore, and I think that that's going to 49 00:02:36,360 --> 00:02:38,920 Speaker 1: be the case. And you know, the equity market last year, 50 00:02:39,000 --> 00:02:41,880 Speaker 1: we're looking at the SMP, it made seventy new all 51 00:02:41,960 --> 00:02:44,640 Speaker 1: time highs. That's a pretty good place to come into 52 00:02:44,680 --> 00:02:47,600 Speaker 1: the year on. So we can afford a pullback here. 53 00:02:48,040 --> 00:02:51,720 Speaker 1: And the Fed's main mandate is to control prices, maintain 54 00:02:51,800 --> 00:02:56,000 Speaker 1: stable prices, and maximum employment. So those are priorities number 55 00:02:56,040 --> 00:02:59,560 Speaker 1: one and number two. The employment boxes all but checked, 56 00:02:59,680 --> 00:03:02,680 Speaker 1: and now we're on two prices. Obviously there's an inflation 57 00:03:02,760 --> 00:03:04,799 Speaker 1: problem that they need to deal with. I think that 58 00:03:04,840 --> 00:03:07,679 Speaker 1: they're going to let the equity markets see volatility and 59 00:03:07,720 --> 00:03:09,720 Speaker 1: they're not going to react to that unless it starts 60 00:03:09,760 --> 00:03:13,359 Speaker 1: to threaten financial stability, which again ends up actually being 61 00:03:13,400 --> 00:03:16,440 Speaker 1: more about the bond markets and the equity market. So 62 00:03:16,440 --> 00:03:18,040 Speaker 1: what do you think we might see that the ten 63 00:03:18,120 --> 00:03:20,040 Speaker 1: years it's gonna hit two percent before it hits one 64 00:03:20,040 --> 00:03:23,840 Speaker 1: point five percent. How do you think about that, Liz? Yeah, 65 00:03:23,880 --> 00:03:25,720 Speaker 1: you know, well, we've seen a huge run up in 66 00:03:25,720 --> 00:03:28,519 Speaker 1: the ten year already this year, at thirty basis points 67 00:03:28,560 --> 00:03:31,560 Speaker 1: since the beginning of the year, and that's pretty swift, 68 00:03:31,720 --> 00:03:34,120 Speaker 1: which I think is another reason why the equity market 69 00:03:34,120 --> 00:03:37,080 Speaker 1: is seeing so much of volatility. It has trouble with 70 00:03:37,200 --> 00:03:40,720 Speaker 1: big spikes and yields. But I do think we could 71 00:03:40,720 --> 00:03:42,840 Speaker 1: touch too. I think we could get above two and 72 00:03:42,920 --> 00:03:46,240 Speaker 1: actually get even closer to two and a quarter before 73 00:03:46,320 --> 00:03:48,800 Speaker 1: things sort of level out. Now we might have a 74 00:03:48,840 --> 00:03:51,920 Speaker 1: little bit of a pause here because now the interesting 75 00:03:51,960 --> 00:03:54,240 Speaker 1: part is we're in this waiting period. We're not going 76 00:03:54,280 --> 00:03:56,560 Speaker 1: to hear from the Fed again until March sixteenth, and 77 00:03:56,600 --> 00:03:59,080 Speaker 1: that's when everybody expects the first rate hike to happen. 78 00:03:59,360 --> 00:04:01,680 Speaker 1: So there's a long period of time between now and 79 00:04:01,720 --> 00:04:04,000 Speaker 1: then where the market has to kind of tredge through 80 00:04:04,040 --> 00:04:07,040 Speaker 1: this uncertainty, and we might bounce around in a range 81 00:04:07,040 --> 00:04:09,200 Speaker 1: on the tenure. But I think as we get closer 82 00:04:09,200 --> 00:04:11,640 Speaker 1: and closer to rate hikes, you'll see the tenure get 83 00:04:11,720 --> 00:04:13,840 Speaker 1: higher again, and I really do think that we can 84 00:04:13,840 --> 00:04:15,640 Speaker 1: get above two in the first half of the year. 85 00:04:15,720 --> 00:04:17,680 Speaker 1: Do you have any concern that we see I mean, 86 00:04:18,520 --> 00:04:20,760 Speaker 1: I've looked back at rate hikes cycles for the last 87 00:04:20,760 --> 00:04:26,480 Speaker 1: twenty years and you always get um the curve flattening, 88 00:04:26,920 --> 00:04:29,800 Speaker 1: sometimes inverting. Is that a concern here? And do you 89 00:04:29,839 --> 00:04:36,120 Speaker 1: think we'll hit a recession in Well, we've seen flattening 90 00:04:36,160 --> 00:04:39,839 Speaker 1: already in the curve since Poul's statements earlier this week, 91 00:04:39,960 --> 00:04:42,599 Speaker 1: So I think that the spread went from somewhere in 92 00:04:42,800 --> 00:04:45,760 Speaker 1: the eight basis point basis point range down to the 93 00:04:45,920 --> 00:04:50,200 Speaker 1: low sixties. Still pretty far from inverting. But that is 94 00:04:50,240 --> 00:04:51,839 Speaker 1: one of those measures that I think the feed is 95 00:04:51,839 --> 00:04:55,000 Speaker 1: going to watch. They don't necessarily watch the two tens. 96 00:04:55,040 --> 00:04:58,599 Speaker 1: They might watch a shorter term measure versus the tenure, 97 00:04:59,000 --> 00:05:01,240 Speaker 1: but they're not going to want the curve to invert, 98 00:05:01,400 --> 00:05:04,560 Speaker 1: and they're very aware of that dynamic in the market. 99 00:05:04,880 --> 00:05:07,160 Speaker 1: I don't think one or two rate hikes is going 100 00:05:07,160 --> 00:05:09,839 Speaker 1: to invert the curve. But that's why I think, you know, 101 00:05:09,880 --> 00:05:12,400 Speaker 1: the market suggesting that we're going to have five or 102 00:05:12,800 --> 00:05:15,039 Speaker 1: more rate hikes this year is a little ahead of 103 00:05:15,040 --> 00:05:18,440 Speaker 1: itself because that would probably cause an inversion, and I 104 00:05:18,480 --> 00:05:20,200 Speaker 1: don't think the FET is going to do that, so 105 00:05:20,440 --> 00:05:22,320 Speaker 1: they're going to keep their eye on it. I don't 106 00:05:22,360 --> 00:05:25,240 Speaker 1: see a recession coming. I think Jerome Powell has been 107 00:05:25,839 --> 00:05:28,920 Speaker 1: very careful trying to thread this needle, and he's going 108 00:05:28,960 --> 00:05:32,080 Speaker 1: to continue to be careful. The idea is to allow 109 00:05:32,120 --> 00:05:35,200 Speaker 1: the recovery to continue. Uh. One of the ways that 110 00:05:35,240 --> 00:05:37,200 Speaker 1: you allow it to continue is to make sure that 111 00:05:37,200 --> 00:05:40,240 Speaker 1: inflation doesn't get in the way. Liz thirty seconds kind 112 00:05:40,240 --> 00:05:42,720 Speaker 1: of what's your best idea for where to be here 113 00:05:42,720 --> 00:05:46,240 Speaker 1: in this rising interest rade environment? I mean you want 114 00:05:46,240 --> 00:05:49,320 Speaker 1: to look at short duration assets that goes for equities, 115 00:05:49,400 --> 00:05:52,320 Speaker 1: you know, thinking about UM, some of those cyclical sectors, 116 00:05:52,320 --> 00:05:54,120 Speaker 1: some of the dividend payers that are going to do 117 00:05:54,160 --> 00:05:56,840 Speaker 1: well here in the short term with volatility. I'd also 118 00:05:56,880 --> 00:05:59,640 Speaker 1: look at health care for a long term idea. And 119 00:05:59,760 --> 00:06:02,159 Speaker 1: in national I think this is the year where international 120 00:06:02,200 --> 00:06:07,560 Speaker 1: investing has a revival, both in narrative and returns. Alright, Liz, 121 00:06:07,600 --> 00:06:10,040 Speaker 1: thanks so much for joining us. A pleasure having you 122 00:06:10,080 --> 00:06:13,400 Speaker 1: on and UM it's exciting to see what's going on 123 00:06:13,680 --> 00:06:16,400 Speaker 1: at so far as well. So great to get your 124 00:06:16,400 --> 00:06:19,839 Speaker 1: take this morning. Liz Young there, she is the head 125 00:06:19,839 --> 00:06:23,320 Speaker 1: of investment strategy for so Far, and that is a 126 00:06:23,320 --> 00:06:26,520 Speaker 1: business that it's growing. We saw them um get more 127 00:06:26,560 --> 00:06:30,680 Speaker 1: licensed bank over the last week and so um they're 128 00:06:30,720 --> 00:06:34,840 Speaker 1: offering uh, just a huge platform full of products. Uh 129 00:06:34,839 --> 00:06:36,680 Speaker 1: and I guess the kids. It's just it's not just 130 00:06:36,760 --> 00:06:39,000 Speaker 1: the kids anymore. I don't think so. I think I'm 131 00:06:39,040 --> 00:06:41,279 Speaker 1: seeing a lot more about it, and uh, I think 132 00:06:41,279 --> 00:06:48,120 Speaker 1: it's a certainly great option financial services. No, Matt, we 133 00:06:48,200 --> 00:06:51,920 Speaker 1: talk a lot about fintech, financial technology, we talk a 134 00:06:51,960 --> 00:06:54,840 Speaker 1: lot about crypto, but it's just it just seems to 135 00:06:54,880 --> 00:06:58,599 Speaker 1: me that some of the traditional financial institutions are just 136 00:06:58,720 --> 00:07:01,880 Speaker 1: slow to embrace the whole fintech thing. It just feels 137 00:07:01,880 --> 00:07:03,080 Speaker 1: that way to me. I'm not sure that's look at 138 00:07:03,640 --> 00:07:06,400 Speaker 1: look at the so Far exactly right. We're just talking 139 00:07:06,520 --> 00:07:08,839 Speaker 1: to the so Far analyst. But you know, I saw 140 00:07:08,880 --> 00:07:11,440 Speaker 1: the news recently that UBS agrees to buy robo advisor 141 00:07:11,440 --> 00:07:13,760 Speaker 1: wealth Front, uh, kind of a fintech player, for at 142 00:07:13,800 --> 00:07:15,920 Speaker 1: one point four billions. So that kind of gets your attention. 143 00:07:15,920 --> 00:07:18,240 Speaker 1: But I'm gonna get a sense of how some of 144 00:07:18,240 --> 00:07:22,480 Speaker 1: these traditional financial institutions are thinking about embracing and investing 145 00:07:22,520 --> 00:07:25,440 Speaker 1: in financial technology. You can talk about that with Robin Vince, 146 00:07:25,520 --> 00:07:29,800 Speaker 1: vice chair and CEO of Global Market Infrastructure for B 147 00:07:30,080 --> 00:07:33,040 Speaker 1: and Y. Melon. Robin, you've been in the financial services 148 00:07:33,080 --> 00:07:38,360 Speaker 1: industry for decades. You've seen it evolve. Do you feel 149 00:07:38,360 --> 00:07:43,960 Speaker 1: like the traditional banks, financial institutions are fully embracing kind 150 00:07:44,000 --> 00:07:49,840 Speaker 1: of fintech, crypto, some of the new changes in financial services. Well, first, 151 00:07:49,920 --> 00:07:52,200 Speaker 1: it's great to be with you today, Paul and Matt 152 00:07:52,440 --> 00:07:54,280 Speaker 1: um here here are being why Melon, We love the 153 00:07:54,320 --> 00:07:56,920 Speaker 1: show and I'm speaking you to you today from our 154 00:07:57,000 --> 00:08:00,679 Speaker 1: headquarters here in downtown New York City, which is really 155 00:08:00,680 --> 00:08:03,000 Speaker 1: one of the centers of innovation that we've seen in 156 00:08:03,000 --> 00:08:06,240 Speaker 1: the financial world over the course of our history of 157 00:08:06,240 --> 00:08:10,720 Speaker 1: two and thirty seven years. But look to the point 158 00:08:10,760 --> 00:08:13,960 Speaker 1: of old firms versus new we don't see it in 159 00:08:14,000 --> 00:08:18,040 Speaker 1: that binary way. We just view our position at the 160 00:08:18,200 --> 00:08:22,960 Speaker 1: very harder financial infrastructure allowing us to really be an innovator. Look, 161 00:08:23,240 --> 00:08:27,040 Speaker 1: we touch one fifth of the world's investible assets, We 162 00:08:27,120 --> 00:08:30,640 Speaker 1: service a super majority of global institutions, and so we're 163 00:08:30,680 --> 00:08:34,320 Speaker 1: super well positioned at that exact intersection of the trust 164 00:08:34,360 --> 00:08:36,840 Speaker 1: that we have from our franchise and that gives us 165 00:08:36,880 --> 00:08:39,800 Speaker 1: the ability to innovate, and you can see that in 166 00:08:39,800 --> 00:08:41,760 Speaker 1: a in a whole bunch of different things that we've 167 00:08:41,800 --> 00:08:45,680 Speaker 1: been doing. We announced a crypto custody effort at the 168 00:08:45,679 --> 00:08:49,400 Speaker 1: beginning of last year, the effort into e bills that 169 00:08:49,480 --> 00:08:52,160 Speaker 1: we're doing with Verizon. There's just a whole long list 170 00:08:52,200 --> 00:08:54,000 Speaker 1: of things that we're doing. And frankly, we think it's 171 00:08:54,000 --> 00:08:57,320 Speaker 1: a strength to have the established franchise that we do 172 00:08:57,480 --> 00:09:00,719 Speaker 1: today along with that innovation. Sure. I mean, I was 173 00:09:00,720 --> 00:09:02,319 Speaker 1: gonna say in a lot of ways, b n Y 174 00:09:02,400 --> 00:09:04,840 Speaker 1: Melon is on the cutting edge of this stuff. And 175 00:09:04,880 --> 00:09:08,480 Speaker 1: you have been UM leaders. Tom Keane would probably say 176 00:09:08,480 --> 00:09:13,200 Speaker 1: something like on the avant garde, UM, but you don't 177 00:09:13,600 --> 00:09:17,520 Speaker 1: see that much enthusiasm from the rest of the street 178 00:09:17,559 --> 00:09:21,000 Speaker 1: compared to UM where you see it in the city, 179 00:09:21,120 --> 00:09:25,280 Speaker 1: where you see it in Miami. Um, what do you 180 00:09:25,320 --> 00:09:28,360 Speaker 1: think we're gonna we're gonna end up with here? I mean, 181 00:09:28,720 --> 00:09:31,800 Speaker 1: it's not gonna be just old Wall Street banks running 182 00:09:31,880 --> 00:09:37,040 Speaker 1: our finances in the future. So uh, it's going to 183 00:09:37,120 --> 00:09:39,640 Speaker 1: be a best of both worlds. And we welcome the 184 00:09:39,720 --> 00:09:43,920 Speaker 1: competition and frankly, the push that all of these fintech 185 00:09:44,120 --> 00:09:47,160 Speaker 1: and new industry players are really providing into the space. 186 00:09:47,360 --> 00:09:51,760 Speaker 1: But for us, it's about taking that client franchise, we've 187 00:09:51,760 --> 00:09:53,640 Speaker 1: got the trust that we enjoy with our clients and 188 00:09:53,640 --> 00:09:55,440 Speaker 1: then innovating. So let me give you an example. So 189 00:09:55,559 --> 00:09:59,360 Speaker 1: we we announced late last year the industry first collaboration 190 00:09:59,400 --> 00:10:02,760 Speaker 1: with Verizon on real time e builds and payments for 191 00:10:02,920 --> 00:10:07,000 Speaker 1: US retail clients. Now we're America's oldest bank, but we're 192 00:10:07,040 --> 00:10:10,640 Speaker 1: the first bank to do real time payments and real 193 00:10:10,679 --> 00:10:14,840 Speaker 1: time request for payments, which is enabling for the first time, 194 00:10:15,400 --> 00:10:21,160 Speaker 1: real direct, real time payments from a consumer to a business, 195 00:10:21,200 --> 00:10:24,880 Speaker 1: cutting out the interchange fees, cutting out the inefficiency, cutting 196 00:10:24,880 --> 00:10:29,679 Speaker 1: out the environmental negative footprint of paper and fuel. And 197 00:10:29,760 --> 00:10:32,920 Speaker 1: so that's a great example of exactly that type of innovation. 198 00:10:33,080 --> 00:10:35,079 Speaker 1: And I'm gladn't to Fintake that did it. It was us. 199 00:10:35,160 --> 00:10:37,960 Speaker 1: I'm glad you mentioned the environmental aspect because E s 200 00:10:38,000 --> 00:10:39,880 Speaker 1: G has been kind of a buzzword and I'm sure 201 00:10:39,880 --> 00:10:41,640 Speaker 1: there's going to be a lot of greenwashing. But you're 202 00:10:41,679 --> 00:10:46,640 Speaker 1: also pushing for more diversity, to include women in your 203 00:10:47,120 --> 00:10:50,960 Speaker 1: higher ranks to advanced junior bankers. Tell us about that 204 00:10:50,960 --> 00:10:52,880 Speaker 1: push because it's really taken on a lot of meaning 205 00:10:52,880 --> 00:10:57,240 Speaker 1: this year or last year. Yeah, and it really is 206 00:10:57,600 --> 00:10:59,840 Speaker 1: a critical point. We have one of the most diverse 207 00:11:00,080 --> 00:11:02,600 Speaker 1: boards in the industry and we're super proud of that. 208 00:11:03,120 --> 00:11:06,200 Speaker 1: For the fifteenth consecutive year, we received a score of 209 00:11:06,240 --> 00:11:11,000 Speaker 1: a hundred on the Human Rights Campaign Foundations Corporate Equality Index. 210 00:11:11,040 --> 00:11:13,160 Speaker 1: It's the fifth year in the row that BN Y 211 00:11:13,200 --> 00:11:18,160 Speaker 1: Melons included in the Bloomberg Gender Equality Index, and we're 212 00:11:18,200 --> 00:11:21,120 Speaker 1: really proud to be named as one of those firms. 213 00:11:21,120 --> 00:11:23,720 Speaker 1: It's really driving the equity and inclusion, and we're doing 214 00:11:23,760 --> 00:11:26,600 Speaker 1: it at the top, and we're doing it through the organization, 215 00:11:26,760 --> 00:11:29,880 Speaker 1: and it's the only way to be competitive over the 216 00:11:29,920 --> 00:11:32,080 Speaker 1: course of the coming years, as well as being the 217 00:11:32,200 --> 00:11:34,640 Speaker 1: right thing to do. Yeah, Robin, I worked on Wall 218 00:11:34,640 --> 00:11:36,200 Speaker 1: Street for a long time and what I found in 219 00:11:36,240 --> 00:11:38,920 Speaker 1: my experience and then even managing a business here at 220 00:11:39,200 --> 00:11:41,679 Speaker 1: Bloomberg is you know you can bring in if you 221 00:11:41,679 --> 00:11:44,360 Speaker 1: look at the entering analysts class at any investment bank, 222 00:11:44,400 --> 00:11:48,200 Speaker 1: any financement institution UM over the last decade plus, it 223 00:11:48,240 --> 00:11:51,920 Speaker 1: will look very representative of the marketplace. It will have 224 00:11:52,040 --> 00:11:55,200 Speaker 1: a proper diversity UM. But then when you get up 225 00:11:55,240 --> 00:11:58,559 Speaker 1: to the managing director ranks, the partner ranks. That's where 226 00:11:58,640 --> 00:12:03,079 Speaker 1: the you know, the real glaring disparities you kind of 227 00:12:03,120 --> 00:12:06,440 Speaker 1: show themselves. How do you think if an institutions can 228 00:12:06,480 --> 00:12:11,560 Speaker 1: do to kind of improve that trend? Were You're right 229 00:12:11,760 --> 00:12:15,679 Speaker 1: that that is the challenge. Being able to hire full 230 00:12:15,800 --> 00:12:19,720 Speaker 1: range of diversity at the entry level is obviously sort 231 00:12:19,720 --> 00:12:23,839 Speaker 1: of table stakes at this point. It's about development and 232 00:12:24,400 --> 00:12:28,640 Speaker 1: retention and what what goes into development and retention. That's 233 00:12:28,720 --> 00:12:34,359 Speaker 1: ultimately about opportunity training, giving people not only the pay 234 00:12:34,400 --> 00:12:37,800 Speaker 1: but also the interesting problems to solve, and that for 235 00:12:37,920 --> 00:12:40,000 Speaker 1: us is one of the things that we're very proud of. 236 00:12:40,240 --> 00:12:43,280 Speaker 1: We have forty six trillion dollars worth of assets under custody. 237 00:12:43,400 --> 00:12:48,080 Speaker 1: We touched twenty percent of the world's investible assets. We 238 00:12:48,160 --> 00:12:51,760 Speaker 1: put ten trillion dollars of US treasuries through our platform 239 00:12:51,880 --> 00:12:56,160 Speaker 1: every day, and we have this incredible franchise where we're 240 00:12:56,160 --> 00:13:01,760 Speaker 1: proud to call fortune companies, uh, you know, our clients 241 00:13:01,760 --> 00:13:04,559 Speaker 1: and of the top one hundred banks. And so when 242 00:13:04,600 --> 00:13:07,800 Speaker 1: you have that type of relevance and you have interesting 243 00:13:07,840 --> 00:13:11,000 Speaker 1: opportunities and problems for people to solve, that's how you 244 00:13:11,160 --> 00:13:14,120 Speaker 1: retain great people through the life of their careers. Can 245 00:13:14,160 --> 00:13:16,000 Speaker 1: I can I just get your take on the health 246 00:13:16,040 --> 00:13:18,600 Speaker 1: of New York City? UM to finish up, because you're 247 00:13:18,640 --> 00:13:21,560 Speaker 1: involved in civic service here in New York as well, 248 00:13:21,880 --> 00:13:24,360 Speaker 1: and you mentioned at the top, do you think New 249 00:13:24,440 --> 00:13:27,880 Speaker 1: York City is bouncing back from this pandemic with strength? 250 00:13:29,280 --> 00:13:31,360 Speaker 1: With a bank of New York, We're never going to 251 00:13:31,440 --> 00:13:34,000 Speaker 1: bet against New York City. And you know, I sit 252 00:13:34,040 --> 00:13:36,600 Speaker 1: here in our office today in downtown New York and 253 00:13:36,600 --> 00:13:39,520 Speaker 1: of course we're having to all deal with the challenges 254 00:13:39,640 --> 00:13:43,119 Speaker 1: that Macron has presented to us all. But I'm excited 255 00:13:43,320 --> 00:13:45,280 Speaker 1: for the fact that we're going to be welcoming our 256 00:13:45,320 --> 00:13:47,559 Speaker 1: people back to the office in due course. And I'm 257 00:13:47,559 --> 00:13:49,679 Speaker 1: a believer in the fact that the world has changed 258 00:13:50,120 --> 00:13:53,240 Speaker 1: and it won't be five days a week, every day, 259 00:13:53,280 --> 00:13:55,800 Speaker 1: everyone in the office all the time. We're going to 260 00:13:55,920 --> 00:13:58,240 Speaker 1: take advantage of all these learnings that we've had over 261 00:13:58,240 --> 00:13:59,800 Speaker 1: the course of the past couple of years. We're going 262 00:13:59,880 --> 00:14:02,360 Speaker 1: to be a more hybrid organization that's going to go 263 00:14:02,400 --> 00:14:04,640 Speaker 1: back to your prior point about retention. It's going to 264 00:14:04,720 --> 00:14:07,520 Speaker 1: be important for that. But at the same time, being 265 00:14:07,559 --> 00:14:10,840 Speaker 1: in the office some of the time at least together 266 00:14:11,320 --> 00:14:13,960 Speaker 1: and contributing to the vibrancy of the city, but also 267 00:14:14,040 --> 00:14:17,720 Speaker 1: contributing to that sense of culture and community, developing people, 268 00:14:17,760 --> 00:14:20,680 Speaker 1: making them excited to be here. That's ultimately what our 269 00:14:20,720 --> 00:14:23,000 Speaker 1: future looks like. All right, Robin, thank you so much 270 00:14:23,080 --> 00:14:25,360 Speaker 1: for taking the time to join us. To really appreciate 271 00:14:25,360 --> 00:14:29,400 Speaker 1: getting your perspective. Uh boy, long time at Goldman Saxon. 272 00:14:29,400 --> 00:14:32,120 Speaker 1: Now at the Bank of New York, Melon, Robin Vince, 273 00:14:32,200 --> 00:14:35,280 Speaker 1: Vice Chair and CEO of Global Market Infrastructure at b 274 00:14:35,480 --> 00:14:38,960 Speaker 1: n Y Melon, and you know, a good broad perspective 275 00:14:38,960 --> 00:14:42,840 Speaker 1: of financial services, um, and the pivot towards the I guess, 276 00:14:42,880 --> 00:14:46,960 Speaker 1: the embracing of financial technology and in the office. Yeah, 277 00:14:47,040 --> 00:14:49,080 Speaker 1: and in the office, I mean I think you know, 278 00:14:49,120 --> 00:14:51,640 Speaker 1: the city is going to be coming back pretty aggressively 279 00:14:51,680 --> 00:14:57,280 Speaker 1: over the next several weeks and months. We are going 280 00:14:57,320 --> 00:15:00,120 Speaker 1: to talk a little bit about robots, and I will 281 00:15:00,240 --> 00:15:03,360 Speaker 1: uh well, bringing Laura right right now. Um. She is 282 00:15:03,720 --> 00:15:08,240 Speaker 1: a reporter slash producer, UM woman about town out of 283 00:15:08,280 --> 00:15:12,480 Speaker 1: London and uh a friend of mine, I will say. Also, 284 00:15:12,680 --> 00:15:15,000 Speaker 1: one of my good friends from San Francisco is going 285 00:15:15,040 --> 00:15:18,200 Speaker 1: to join us, Ed Ludlow. He covers all things tech 286 00:15:18,560 --> 00:15:22,480 Speaker 1: plus Tesla and Rivian for us. So the e V sector, 287 00:15:22,520 --> 00:15:26,280 Speaker 1: I guess that includes Lucid and Nicola And looking at 288 00:15:26,280 --> 00:15:28,560 Speaker 1: the stocks are they've been under pressure here, boy, they 289 00:15:28,600 --> 00:15:31,520 Speaker 1: have been. And um, why don't we kick it off 290 00:15:31,600 --> 00:15:34,000 Speaker 1: first with Laura because Tesla came out with earnings and 291 00:15:34,040 --> 00:15:38,560 Speaker 1: they were a bit disappointing. Um in that UM, I 292 00:15:38,600 --> 00:15:43,360 Speaker 1: guess the numbers themselves weren't so bad. Um, but the 293 00:15:43,440 --> 00:15:47,520 Speaker 1: production plan doesn't seem to be anywhere near where we 294 00:15:47,560 --> 00:15:50,400 Speaker 1: thought it should be, right Laura, Yeah, that's right, Matt. Well, 295 00:15:50,440 --> 00:15:55,080 Speaker 1: the operational factories in Fremont, California and Shanghai, we learned 296 00:15:55,080 --> 00:15:59,040 Speaker 1: that they've been under producing. The nightmare supply chain crunch 297 00:15:59,120 --> 00:16:02,320 Speaker 1: that Elon Musk tweeted about at the end of last 298 00:16:02,400 --> 00:16:06,160 Speaker 1: year has seemed to become a reality. So we knew 299 00:16:06,240 --> 00:16:10,520 Speaker 1: going into these results right that Tesla had achieved record deliveries. 300 00:16:10,600 --> 00:16:14,200 Speaker 1: It was a record profit in spite of the supply 301 00:16:14,320 --> 00:16:19,280 Speaker 1: chain difficulties that will be ahead. Tesla did, however, maintain 302 00:16:19,400 --> 00:16:24,440 Speaker 1: that delivery target of fi annual growth. And one interesting 303 00:16:24,480 --> 00:16:29,040 Speaker 1: note from Morgan Stanley. They believe the bull case narrative 304 00:16:29,400 --> 00:16:34,560 Speaker 1: hasn't really changed, but it wasn't a spectacular results, as 305 00:16:34,920 --> 00:16:37,800 Speaker 1: we might have hoped, would change the balls minds on Tesla. 306 00:16:38,120 --> 00:16:42,400 Speaker 1: I mean Tesla balls minds cannot be changed, so whatever. Um. 307 00:16:42,600 --> 00:16:46,480 Speaker 1: The interesting juxtaposition to this ed, I think in a 308 00:16:46,560 --> 00:16:49,360 Speaker 1: way is the story that you broke on Rivian now 309 00:16:49,440 --> 00:16:52,440 Speaker 1: compares Rivillian Rivan's current production to that of Tesla when 310 00:16:52,480 --> 00:16:55,560 Speaker 1: they first started. But the idea is these guys have 311 00:16:55,640 --> 00:16:59,880 Speaker 1: it together in a slightly more I guess organized way. Yeah, 312 00:16:59,880 --> 00:17:02,640 Speaker 1: I mean the stocks under pressure. It just hit fifty bucks. 313 00:17:02,640 --> 00:17:05,080 Speaker 1: The more Stark has been crushed, but it's still fifty 314 00:17:05,119 --> 00:17:07,560 Speaker 1: billion dollar company, which in me is shark right, and 315 00:17:07,600 --> 00:17:10,399 Speaker 1: it's largely pre revenue, right. They just started booking revenue 316 00:17:10,520 --> 00:17:12,439 Speaker 1: revenue of these things. But what sources tell me is 317 00:17:12,480 --> 00:17:16,119 Speaker 1: that the end of fourth quarter was tough. You know, 318 00:17:16,119 --> 00:17:18,280 Speaker 1: there were COVID outbreaks at the plant. They had an 319 00:17:18,280 --> 00:17:20,960 Speaker 1: all hands on deck kind of scenario to get these 320 00:17:20,960 --> 00:17:23,040 Speaker 1: pickup trucks, which I'm starting this scene now by the 321 00:17:23,080 --> 00:17:26,520 Speaker 1: way in San Francisco on the streets. Um. And then 322 00:17:26,560 --> 00:17:29,040 Speaker 1: they try to introduce a new product onto the assembly line, 323 00:17:29,040 --> 00:17:32,480 Speaker 1: which they share an assembly line, and you know, production 324 00:17:32,600 --> 00:17:35,160 Speaker 1: really slowed down. So what they did new year's day, 325 00:17:35,200 --> 00:17:38,359 Speaker 1: Boom shut down the assembly line altogether fixed the problems 326 00:17:38,720 --> 00:17:41,439 Speaker 1: restarted on January the nine, and since then they're ramping 327 00:17:41,520 --> 00:17:44,399 Speaker 1: up like massively. You know, it's almost two trucks a 328 00:17:44,400 --> 00:17:47,080 Speaker 1: week um, which is what are they making. They're making 329 00:17:47,080 --> 00:17:50,680 Speaker 1: the R one T and the R N S is 330 00:17:50,720 --> 00:17:53,399 Speaker 1: the S, but the R N S very modest volumes. 331 00:17:53,400 --> 00:17:55,840 Speaker 1: In fact that the company's only publicly discussed that the 332 00:17:55,840 --> 00:17:59,040 Speaker 1: CEO R J. Scarynge and the CFO claim mcdonna have one. 333 00:17:59,280 --> 00:18:02,440 Speaker 1: No one else's publicly, you know, taking delivery of one yet. 334 00:18:02,440 --> 00:18:05,920 Speaker 1: But I'm told they are building sailable vehicles. Sources say 335 00:18:05,960 --> 00:18:09,200 Speaker 1: it's like, you know, a negligible number. So, Laura, what's 336 00:18:09,240 --> 00:18:13,040 Speaker 1: the feeling in the EV marketplace as to boy the 337 00:18:13,080 --> 00:18:16,280 Speaker 1: compety the competitive landscape is really beginning to change chairs. 338 00:18:16,320 --> 00:18:18,879 Speaker 1: We have some of the you know, the big O E. M. 339 00:18:18,920 --> 00:18:21,040 Speaker 1: S is, whether it's Volkswagener or Forward or General Motors 340 00:18:21,200 --> 00:18:24,520 Speaker 1: really ramp up their EV game. What's the feeling about 341 00:18:24,560 --> 00:18:27,200 Speaker 1: how the market share might shake out over the next 342 00:18:27,240 --> 00:18:31,240 Speaker 1: several years. There is a feeling that competition is ramping up, 343 00:18:31,280 --> 00:18:35,160 Speaker 1: and that poses questions long term for Tesla's volume and 344 00:18:35,400 --> 00:18:39,199 Speaker 1: it's and its share price right. Focusing on Europe a 345 00:18:39,240 --> 00:18:42,399 Speaker 1: little bit, Voxwagen. When we think of their total car sales, 346 00:18:42,560 --> 00:18:46,359 Speaker 1: only five of fully electric. There's been a lot of 347 00:18:46,440 --> 00:18:51,440 Speaker 1: hype about Ford recently they're pushing into electrification market shares 348 00:18:51,480 --> 00:18:55,840 Speaker 1: surpassing one billion dollars for the first time. But Tesla 349 00:18:55,960 --> 00:18:59,320 Speaker 1: is still by far the market leader for evs and 350 00:18:59,400 --> 00:19:02,080 Speaker 1: for back trees. So the cyber truck, which I know 351 00:19:02,160 --> 00:19:04,840 Speaker 1: Matt Miller will want to come onto that. What's concerned 352 00:19:04,880 --> 00:19:08,200 Speaker 1: Initially that the new batteries which are more efficient used 353 00:19:08,200 --> 00:19:11,200 Speaker 1: in the cyber truck that was the reason behind the delay. 354 00:19:11,400 --> 00:19:13,600 Speaker 1: Turns out the batteries are fine and tells us planning 355 00:19:13,600 --> 00:19:16,960 Speaker 1: to use those more efficient batteries across all their models. 356 00:19:16,960 --> 00:19:20,040 Speaker 1: So it still has that competitive advantage with technology. I mean, 357 00:19:20,160 --> 00:19:24,280 Speaker 1: the thing is five isn't very little, right. Volkswagen makes 358 00:19:24,640 --> 00:19:28,680 Speaker 1: ten million cars a year, so that's different than Tesla, 359 00:19:28,800 --> 00:19:31,280 Speaker 1: although they really ramped up their production right there. What 360 00:19:31,320 --> 00:19:34,040 Speaker 1: was it add like nine hundred thirty six thousand um 361 00:19:34,080 --> 00:19:37,359 Speaker 1: for the for the full year. That's doing what they're 362 00:19:37,359 --> 00:19:40,760 Speaker 1: doing well and in that sense, but Laura mentions the truck, 363 00:19:41,080 --> 00:19:43,520 Speaker 1: what a huge disappointment on so many levels. I mean, 364 00:19:43,560 --> 00:19:47,280 Speaker 1: first he breaks the window with the bowling ball or whatever. Remember, 365 00:19:49,320 --> 00:19:51,800 Speaker 1: so embarrassing, and but I thought they were going to 366 00:19:51,880 --> 00:19:54,080 Speaker 1: come out with it eventually. Now Ford is going to 367 00:19:54,160 --> 00:19:57,080 Speaker 1: beat them, Rivan is beat them. Looks like Chevy's gonna 368 00:19:57,080 --> 00:19:59,560 Speaker 1: beat that. Everyone's beating the market with the truck. Well, look, 369 00:19:59,560 --> 00:20:02,560 Speaker 1: they just find it that supply chain issues are disrupting 370 00:20:02,600 --> 00:20:05,160 Speaker 1: current production of Model Y Model three. Right, the cash 371 00:20:05,200 --> 00:20:08,439 Speaker 1: cows the profitable vehicles, so they can't justify a product 372 00:20:08,480 --> 00:20:10,760 Speaker 1: launch if they're not able to service and get the 373 00:20:10,800 --> 00:20:15,080 Speaker 1: parts that they need to build volume on existing vehicles. Um, 374 00:20:15,119 --> 00:20:17,280 Speaker 1: but this is a comms issue. Guys like think about 375 00:20:17,440 --> 00:20:21,240 Speaker 1: earning season broadly across the SMP. Beating on the top 376 00:20:21,280 --> 00:20:23,560 Speaker 1: and bottom line hasn't really counted for much the streets 377 00:20:23,560 --> 00:20:26,040 Speaker 1: looking for how strong is the current core to how 378 00:20:26,080 --> 00:20:28,480 Speaker 1: strong is the year? Elon must tweets going into this 379 00:20:28,560 --> 00:20:31,399 Speaker 1: earnings having sort of spectacular announced he doesn't want to 380 00:20:31,400 --> 00:20:33,600 Speaker 1: do Earny schools anymore because he's too busy that he'll 381 00:20:33,640 --> 00:20:36,479 Speaker 1: outline a product roadmap. He goes on the cool and 382 00:20:36,520 --> 00:20:38,760 Speaker 1: does not outline a product roadmap. In fact, he does 383 00:20:38,800 --> 00:20:40,920 Speaker 1: the opposite. Sorry, guys, these products are all on the 384 00:20:40,920 --> 00:20:44,159 Speaker 1: back burner because of supply chain issues. Um, it's a 385 00:20:44,160 --> 00:20:47,159 Speaker 1: comms issue, all right. Ed Ludlow, thanks so much for 386 00:20:47,240 --> 00:20:49,960 Speaker 1: joining us. Ed Lulow, West Coast correspondent for Bloomberg News 387 00:20:49,960 --> 00:20:53,639 Speaker 1: and Bloomberg TV. Produce a law right joining us from London, 388 00:20:53,640 --> 00:20:57,760 Speaker 1: getting the latest on e VS the secrets under some 389 00:20:57,880 --> 00:21:04,439 Speaker 1: pressure here, lots of pieces supply chain issues, competition, but 390 00:21:04,480 --> 00:21:10,680 Speaker 1: you know that Matt Miller's all over it. And I'm 391 00:21:10,760 --> 00:21:14,479 Speaker 1: Nathan Hagar in the Bloomberg room in Washington. We do 392 00:21:14,520 --> 00:21:17,200 Speaker 1: all scream for ice cream and we're very excited to 393 00:21:17,880 --> 00:21:22,120 Speaker 1: bring in the CEO of Dryer's Grand ice Cream, Kim 394 00:21:22,280 --> 00:21:26,960 Speaker 1: Pedal regum with us this morning. Kim, thanks for being here. 395 00:21:27,280 --> 00:21:31,480 Speaker 1: I got the long straw because I'm probably the biggest 396 00:21:31,560 --> 00:21:35,280 Speaker 1: fan of ice cream there is. You don't think so. 397 00:21:35,560 --> 00:21:38,679 Speaker 1: I don't believe that anyone eats more ice cream than me. 398 00:21:38,760 --> 00:21:42,000 Speaker 1: If I eat, are gonna throw down over this a 399 00:21:42,080 --> 00:21:46,400 Speaker 1: pint a night. My wife thinks I'm a diet Yeah, 400 00:21:46,520 --> 00:21:48,920 Speaker 1: I admit I split the pints with my wife. Kim, 401 00:21:48,960 --> 00:21:51,080 Speaker 1: I gotta ask though. You know we're we're coming up 402 00:21:51,080 --> 00:21:54,040 Speaker 1: to this northeaster here, we're racing for a lot of snow. 403 00:21:54,680 --> 00:21:57,439 Speaker 1: What advice do you have for ice cream fans like 404 00:21:57,560 --> 00:22:01,679 Speaker 1: us as we're digging in for the old here? Same 405 00:22:02,000 --> 00:22:06,000 Speaker 1: is perfect for any weather, any occasion. I firmly believe that. 406 00:22:06,280 --> 00:22:08,600 Speaker 1: So I don't think you need to temper it because 407 00:22:08,600 --> 00:22:12,000 Speaker 1: it's cold outside. Uh, you know, put it on vanilla 408 00:22:12,080 --> 00:22:15,240 Speaker 1: hogandah on top of a dessert item might be a 409 00:22:15,280 --> 00:22:18,840 Speaker 1: wonderful way to spend a cold evening. So, um, you know, 410 00:22:18,920 --> 00:22:23,600 Speaker 1: be creative. I've always wondered, you know, I've always wanted 411 00:22:23,600 --> 00:22:26,080 Speaker 1: to start my own ice cream shop. And I could 412 00:22:26,200 --> 00:22:30,679 Speaker 1: use dryers or you know, um, I could be you know, 413 00:22:30,920 --> 00:22:33,080 Speaker 1: I could be a vendor for you What what would 414 00:22:33,080 --> 00:22:35,440 Speaker 1: I do in the winter because people just don't go 415 00:22:35,520 --> 00:22:37,639 Speaker 1: into ice cream shops as much in the winter. And 416 00:22:37,640 --> 00:22:39,879 Speaker 1: I've always wondered, do I do ice cream in the 417 00:22:39,920 --> 00:22:44,040 Speaker 1: summer and then like bagels in the winter or coffee 418 00:22:44,080 --> 00:22:45,800 Speaker 1: in the winter, ice cream in this summer? What do 419 00:22:45,840 --> 00:22:48,399 Speaker 1: you what do you typically see people do with small 420 00:22:48,400 --> 00:22:52,080 Speaker 1: town shops? We see, I mean people eat ice cream. 421 00:22:52,119 --> 00:22:55,280 Speaker 1: You'd be surprised people have ice cream all year round, um, 422 00:22:55,720 --> 00:22:59,360 Speaker 1: which we love for the you know loyalists, we absolutely 423 00:22:59,400 --> 00:23:02,800 Speaker 1: love them are Hogan Dash shops. UM see consumers all 424 00:23:02,880 --> 00:23:05,920 Speaker 1: years round, and so we have you know, seasonal flavors. 425 00:23:05,920 --> 00:23:08,719 Speaker 1: What I would say is, UM, in the winter months, 426 00:23:08,840 --> 00:23:12,800 Speaker 1: try things like Hagan Dash peppermint, bark flavors like that. 427 00:23:12,840 --> 00:23:16,199 Speaker 1: We have pumpkin pie UM flavors with our dryers and 428 00:23:16,240 --> 00:23:19,919 Speaker 1: eat these brands. And in the summer go through a drumstick, 429 00:23:20,080 --> 00:23:23,880 Speaker 1: take your cone and you know, take a walk outside. UM. 430 00:23:23,920 --> 00:23:26,840 Speaker 1: But there is a product for every time of year, 431 00:23:27,320 --> 00:23:29,320 Speaker 1: for sure, Dryer's Grand ice Cream. If I look across 432 00:23:29,359 --> 00:23:33,280 Speaker 1: the portfolio, we've got something for everyone and every occasion. 433 00:23:33,359 --> 00:23:38,159 Speaker 1: Have you thought about UM selling more alcoholic beverages because 434 00:23:38,280 --> 00:23:41,880 Speaker 1: I love a boozy milkshake. UM. I can't remember where 435 00:23:41,920 --> 00:23:43,679 Speaker 1: I first tried a Hummer. I think I was at 436 00:23:43,680 --> 00:23:49,600 Speaker 1: a wedding in Detroit, and uh, delicious way to imbibe. 437 00:23:49,840 --> 00:23:52,200 Speaker 1: But you don't see it much at ice cream shops, 438 00:23:53,520 --> 00:23:56,359 Speaker 1: you don't. We have it. Hogan Dust brand has a 439 00:23:56,440 --> 00:24:02,159 Speaker 1: spirit's collection, so we do have some alcohol infused flavors. UM. 440 00:24:02,280 --> 00:24:05,480 Speaker 1: You know, ice cream is a product, so Dryer's Grand 441 00:24:05,520 --> 00:24:07,240 Speaker 1: ice Cream. When I look at the portfolio and who 442 00:24:07,240 --> 00:24:10,800 Speaker 1: buys our products and loves our products. It's across all ages, 443 00:24:10,920 --> 00:24:14,880 Speaker 1: so you know there's families, kids, older consumers, and so 444 00:24:14,960 --> 00:24:18,360 Speaker 1: we do have spirits products, um. And you can certainly 445 00:24:18,400 --> 00:24:21,680 Speaker 1: mix and make your own. If you look online and Pinterest, 446 00:24:21,720 --> 00:24:26,320 Speaker 1: you'll find lots of recipes for Outshine fruit bars in Champagne. 447 00:24:26,400 --> 00:24:30,320 Speaker 1: They're just delicious. Um. So if that's what you're interested in, 448 00:24:30,440 --> 00:24:35,200 Speaker 1: there their recipes and all. If that's where, that's where. Um. 449 00:24:35,240 --> 00:24:37,200 Speaker 1: All right, So Kim, if I go to a store 450 00:24:37,680 --> 00:24:39,679 Speaker 1: and I go to the ice cream, all am I 451 00:24:39,680 --> 00:24:42,399 Speaker 1: going to find product? There? Are you guys seeing supply 452 00:24:42,480 --> 00:24:48,159 Speaker 1: chain issues like seemingly every other business is. So I 453 00:24:48,240 --> 00:24:51,720 Speaker 1: will say we I'll start with kind of a broad statement, 454 00:24:51,760 --> 00:24:54,000 Speaker 1: but I really mean it. We have no plans of 455 00:24:54,040 --> 00:24:57,040 Speaker 1: flowing down at dryers Grand ice Cream. So while the 456 00:24:57,080 --> 00:24:59,919 Speaker 1: world around us, you know, there are supply chain challenge 457 00:25:00,040 --> 00:25:03,720 Speaker 1: us for sure, we have spent the last year to 458 00:25:04,000 --> 00:25:10,720 Speaker 1: two years really making contingency plans, backup plans to make 459 00:25:10,800 --> 00:25:14,440 Speaker 1: sure that we can still deliver ice cream to our customers, 460 00:25:14,440 --> 00:25:17,800 Speaker 1: so to our retailers and consumers no matter what. And 461 00:25:17,840 --> 00:25:21,520 Speaker 1: so we have in in the last three months we've 462 00:25:21,560 --> 00:25:26,240 Speaker 1: opened up three new um selling locations for retailers to 463 00:25:26,320 --> 00:25:30,200 Speaker 1: source products from, so hold storage locations across the country 464 00:25:30,359 --> 00:25:32,880 Speaker 1: and what that allows us to do is move inventory 465 00:25:32,920 --> 00:25:36,000 Speaker 1: there be closer to the warehouses of some of our 466 00:25:36,160 --> 00:25:39,760 Speaker 1: our biggest and best customers so that we can get 467 00:25:39,880 --> 00:25:43,359 Speaker 1: product to them faster. Right as there are distribution challenges, 468 00:25:43,840 --> 00:25:46,840 Speaker 1: the closer proximity you are, the easier it is to deliver. 469 00:25:47,440 --> 00:25:51,119 Speaker 1: We have made huge investments, i will say, in our factories. 470 00:25:51,400 --> 00:25:55,080 Speaker 1: So we have four factories across the in the United States. 471 00:25:55,480 --> 00:25:59,040 Speaker 1: We have announced in the last twelve months fifteen new 472 00:25:59,080 --> 00:26:03,200 Speaker 1: production lines across those factories. We are building out walls, 473 00:26:03,400 --> 00:26:07,560 Speaker 1: facilities in every location and that's all around being able 474 00:26:07,600 --> 00:26:10,639 Speaker 1: to produce more product so that it is on shelf 475 00:26:10,640 --> 00:26:13,760 Speaker 1: when you go into your store. I'm thrilled, I'm pleased 476 00:26:13,800 --> 00:26:18,320 Speaker 1: with every single employee in our manufacturing facilities, in our 477 00:26:18,359 --> 00:26:22,439 Speaker 1: distribution network. That is what they're focused on. And what 478 00:26:22,480 --> 00:26:26,080 Speaker 1: I would say is it's our results in the marketplace 479 00:26:26,119 --> 00:26:31,600 Speaker 1: are showing that those investments in the infrastructure production capability. 480 00:26:31,800 --> 00:26:35,359 Speaker 1: Because we know that the challenges are likely to continue 481 00:26:35,440 --> 00:26:39,440 Speaker 1: for a while, we are poised and ready and doing 482 00:26:39,560 --> 00:26:42,320 Speaker 1: everything we can to meet growing demand for ice cream. 483 00:26:42,359 --> 00:26:44,960 Speaker 1: And I will say ice cream demand is going up. 484 00:26:45,200 --> 00:26:50,359 Speaker 1: I wonder about pricing. UM, surely you felt massive inflation 485 00:26:50,560 --> 00:26:52,919 Speaker 1: for your on the input side. Are you able to 486 00:26:52,960 --> 00:26:57,440 Speaker 1: pass it off? We are, so we are seeing inflation 487 00:26:57,600 --> 00:27:01,359 Speaker 1: on our cost structure, right, UM, like everybody is. We've 488 00:27:01,400 --> 00:27:06,680 Speaker 1: been trying to find creative ways around having to impact 489 00:27:06,800 --> 00:27:10,439 Speaker 1: consumers as little as possible on that. So trying to 490 00:27:10,480 --> 00:27:14,119 Speaker 1: find places where there might have been inefficiency in our 491 00:27:14,280 --> 00:27:18,960 Speaker 1: organization and our operations to use, you know, any savings 492 00:27:19,040 --> 00:27:21,600 Speaker 1: to be able to cover those costs. We think some 493 00:27:21,800 --> 00:27:24,960 Speaker 1: of the costs over time, you know, we'll come back down. UM. 494 00:27:25,160 --> 00:27:29,320 Speaker 1: And and we're really looking hard at that. Certainly in 495 00:27:29,520 --> 00:27:32,720 Speaker 1: some areas, UM. You know you see prices going up 496 00:27:32,760 --> 00:27:35,960 Speaker 1: everywhere and UM, but we're doing everything in our power 497 00:27:36,000 --> 00:27:39,840 Speaker 1: to minimize that. We're leveraging our global network of our 498 00:27:39,960 --> 00:27:44,240 Speaker 1: ice cream global company UM to source products UM or 499 00:27:44,480 --> 00:27:47,480 Speaker 1: ingredients for things where we can't get them locally, to 500 00:27:47,600 --> 00:27:50,800 Speaker 1: be able to source them and make them available UM, 501 00:27:50,880 --> 00:27:54,399 Speaker 1: and trying not to impact consumer pricing. Just thirty seconds 502 00:27:54,480 --> 00:27:57,240 Speaker 1: left here, Kim, But I miss the full half gallon. 503 00:27:57,880 --> 00:28:02,840 Speaker 1: I mean, right, I mean when you think about the pricing. 504 00:28:03,160 --> 00:28:08,199 Speaker 1: You can't make the packaging any smaller poster for kids exactly. 505 00:28:09,680 --> 00:28:15,000 Speaker 1: We have plenty of large sized products UM, big containers, 506 00:28:15,000 --> 00:28:17,320 Speaker 1: half gallons. We also, you know, what we're seeing is 507 00:28:17,400 --> 00:28:22,000 Speaker 1: real growth in snack products, so cones and sticks and sandwiches, 508 00:28:22,080 --> 00:28:25,439 Speaker 1: and we're making lots of different multi packed versions of 509 00:28:25,440 --> 00:28:28,160 Speaker 1: that to get at you know, the volume you're looking for, 510 00:28:28,600 --> 00:28:30,880 Speaker 1: UM at a price point that you will also feel 511 00:28:30,880 --> 00:28:33,800 Speaker 1: good about. Thanks so much for joining us. I think 512 00:28:33,800 --> 00:28:36,359 Speaker 1: we're all excited to talk about ice cream. Even in 513 00:28:37,320 --> 00:28:42,600 Speaker 1: uh January, it just snow, it started snowing. I agree. 514 00:28:43,040 --> 00:28:45,480 Speaker 1: I agree with Kim. It isn't it is never too 515 00:28:45,520 --> 00:28:48,959 Speaker 1: cold to eat ice cream. Yeah, I'm with you, So 516 00:28:49,000 --> 00:28:50,920 Speaker 1: we'll see. But that was fun to get Kim on 517 00:28:51,040 --> 00:28:53,520 Speaker 1: talking about the ice cream business. The way, if you're 518 00:28:53,560 --> 00:28:57,640 Speaker 1: wondering about the hummer the recipe, a little khlua, some 519 00:28:57,760 --> 00:29:01,240 Speaker 1: light rum and some vanilla ice cream, Kim would probably 520 00:29:01,240 --> 00:29:04,400 Speaker 1: recommend some kind of bourbon vanilla from Hoggendoss. Mix that 521 00:29:04,480 --> 00:29:07,880 Speaker 1: up and you're good to go. And uh, but don't 522 00:29:07,960 --> 00:29:09,920 Speaker 1: drink too many because they go down, they go down 523 00:29:10,000 --> 00:29:12,800 Speaker 1: real easy, and then you don't realize until later that 524 00:29:13,360 --> 00:29:19,160 Speaker 1: it may have been too much. Thanks for listening to 525 00:29:19,160 --> 00:29:22,680 Speaker 1: the Bloomberg Markets podcast. You can subscribe and listen to 526 00:29:22,720 --> 00:29:26,880 Speaker 1: interviews of Apple Podcasts or whatever podcast platform you prefer. 527 00:29:27,280 --> 00:29:31,240 Speaker 1: I'm Matt Miller. I'm on Twitter at Matt Miller three. 528 00:29:31,640 --> 00:29:34,160 Speaker 1: Pet On Fall Sweeney I'm on Twitter at pt Sweeney. 529 00:29:34,200 --> 00:29:36,840 Speaker 1: Before the podcast, you can always catch us worldwide at 530 00:29:36,880 --> 00:29:37,640 Speaker 1: Bloomberg Radio