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 --> 00:00:15,560 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 --> 00:00:23,360 Speaker 1: at Bloomberg dot com slash podcast. Let's talk private aviation 7 00:00:23,440 --> 00:00:26,160 Speaker 1: only something I can aspire to um in the t 8 00:00:26,360 --> 00:00:28,920 Speaker 1: s A lines like the rest of you. Um. Kenny Dickter, 9 00:00:29,160 --> 00:00:31,440 Speaker 1: founder and CEO of Wheels up there, based in New 10 00:00:31,520 --> 00:00:34,120 Speaker 1: York City. They went public today. Vas back. I'm looking 11 00:00:34,120 --> 00:00:36,680 Speaker 1: at that stock. It's got a great ticker symbol up, 12 00:00:36,960 --> 00:00:39,240 Speaker 1: up and a stock is trading up about eight point 13 00:00:39,280 --> 00:00:42,159 Speaker 1: nine percent in early in trading this morning. Kenny, thanks 14 00:00:42,200 --> 00:00:45,720 Speaker 1: so much for joining us. Congratulations again on your listing. 15 00:00:46,200 --> 00:00:50,199 Speaker 1: Talk to us about the private aviation business. How has 16 00:00:50,240 --> 00:00:52,240 Speaker 1: it changed over the years and particularly in the last 17 00:00:52,280 --> 00:00:56,360 Speaker 1: eighteen months. Give us a sense of that business. Well, 18 00:00:56,360 --> 00:00:59,160 Speaker 1: I would say, like our ticker symbol, it's up and uh, 19 00:00:59,400 --> 00:01:02,480 Speaker 1: I would say, we're in the business of democratizing private aviation. 20 00:01:02,600 --> 00:01:04,959 Speaker 1: So while I think that you're going to continue to 21 00:01:05,000 --> 00:01:07,880 Speaker 1: travel commercially with you and your family. I think there 22 00:01:07,920 --> 00:01:11,840 Speaker 1: will be parts, places and times where we can actually 23 00:01:11,880 --> 00:01:14,520 Speaker 1: swing an airplane for a guy like you. So again, 24 00:01:14,520 --> 00:01:17,840 Speaker 1: we're bringing this to more people, bigger addressable market. We're 25 00:01:17,920 --> 00:01:21,800 Speaker 1: uberizing the space where Airbnb eising the space, and just 26 00:01:21,840 --> 00:01:24,319 Speaker 1: making this more accessible to more people. Part of that 27 00:01:24,440 --> 00:01:27,480 Speaker 1: is you talk about a strategic partnership with Delta Airlines. 28 00:01:27,520 --> 00:01:32,920 Speaker 1: What can members then benefit from the Delta Airline strategic partnership. Well, 29 00:01:32,959 --> 00:01:35,240 Speaker 1: the great news about the Delta partnership and we were 30 00:01:35,240 --> 00:01:37,680 Speaker 1: able to do that deal off market with Ed Bastion 31 00:01:38,200 --> 00:01:40,080 Speaker 1: eighteen months ago, and by the way, in that deal 32 00:01:40,160 --> 00:01:43,280 Speaker 1: that contributed his private jet business and they became our 33 00:01:43,360 --> 00:01:46,720 Speaker 1: largest shareholder. Um So, a couple of things about the 34 00:01:46,720 --> 00:01:51,120 Speaker 1: Delta deal. One is it made Delta easily and seamlessly 35 00:01:51,200 --> 00:01:54,800 Speaker 1: accessible to our client base, which, by the way, travels 36 00:01:54,800 --> 00:01:57,920 Speaker 1: commercially on long haul most of our clients most of 37 00:01:57,920 --> 00:02:00,760 Speaker 1: the time. So you can put a Hunter thousand dollars 38 00:02:00,760 --> 00:02:03,280 Speaker 1: down on wheels up and you can use that capital 39 00:02:03,840 --> 00:02:08,320 Speaker 1: to fly Delta. Conversely, Delta's first class business class and 40 00:02:08,400 --> 00:02:11,680 Speaker 1: Bob Summers and their business customers over at Delta now 41 00:02:11,720 --> 00:02:15,280 Speaker 1: have access to last mile. So if you're a business 42 00:02:15,280 --> 00:02:17,639 Speaker 1: and you're traveling with a couple of people from l 43 00:02:17,720 --> 00:02:20,839 Speaker 1: A X to JFK, you can jump on your Porsche, 44 00:02:20,919 --> 00:02:23,120 Speaker 1: which again is a partnership that we just announced. It 45 00:02:23,160 --> 00:02:27,040 Speaker 1: will take you wing to wing to the private terminal 46 00:02:27,320 --> 00:02:30,200 Speaker 1: and will fly to your your last mile destination, whether 47 00:02:30,240 --> 00:02:33,359 Speaker 1: that's Schenectady, New York, or whether that's you know, Vermont 48 00:02:33,639 --> 00:02:36,600 Speaker 1: or a tough to get to place in Rhode Island. Uh. 49 00:02:36,600 --> 00:02:39,239 Speaker 1: That's that's really the magic of the Delta deal. Can 50 00:02:39,240 --> 00:02:43,440 Speaker 1: he tell us about the typical Wheels Up customer? Give 51 00:02:43,520 --> 00:02:48,280 Speaker 1: us a profile. The profile is anybody that's worked very hard. 52 00:02:48,360 --> 00:02:50,200 Speaker 1: I like to say that we appeal to the working 53 00:02:50,200 --> 00:02:53,280 Speaker 1: wealthy top one to three, which by the way, could 54 00:02:53,280 --> 00:02:57,440 Speaker 1: be ten, fifteen or twenty million people deep. Uh. Any 55 00:02:57,480 --> 00:03:01,200 Speaker 1: business that's doing ten to twenty million dollars and a revenue, Uh, 56 00:03:01,240 --> 00:03:03,640 Speaker 1: they need to It's an essential for them to have 57 00:03:03,639 --> 00:03:05,840 Speaker 1: a Wheels Up membership and have access to our fleet 58 00:03:06,320 --> 00:03:09,359 Speaker 1: of thousands of airplanes. And uh, you know, we did 59 00:03:09,360 --> 00:03:12,560 Speaker 1: this fact merger with Robbie Tochran and Scott Dank and 60 00:03:12,600 --> 00:03:15,560 Speaker 1: his crew over at El Cadaton Robbie had twenty years 61 00:03:15,600 --> 00:03:20,440 Speaker 1: experience with LVMH, so luxury brand lifestyle person. But more 62 00:03:20,480 --> 00:03:24,760 Speaker 1: important he was based in Asia, uh chairman of LVMH 63 00:03:24,880 --> 00:03:29,800 Speaker 1: Asia Scott. You know El Cataton uh, the finest private 64 00:03:29,800 --> 00:03:33,600 Speaker 1: equity firm on a global basis out there. So we 65 00:03:33,680 --> 00:03:36,440 Speaker 1: picked the perfect partner in this back and then we 66 00:03:36,520 --> 00:03:39,240 Speaker 1: got to with our cap table. We had t Row Fidelity, 67 00:03:39,680 --> 00:03:43,240 Speaker 1: Franklin Templeton. We got to choose our equity partners here 68 00:03:43,480 --> 00:03:46,320 Speaker 1: almost by appointment. We did a zoom road show in 69 00:03:46,840 --> 00:03:51,360 Speaker 1: late January. We ended up seeing thirty five companies, twenty 70 00:03:51,400 --> 00:03:54,920 Speaker 1: seven of them invested, including folks like Third Point, Henry 71 00:03:54,920 --> 00:03:58,960 Speaker 1: ellen Bogan and his crew with durable capital, longtime supporters, 72 00:03:59,080 --> 00:04:02,200 Speaker 1: and some other great equity firms that are in this 73 00:04:02,360 --> 00:04:04,760 Speaker 1: for the long haul with us. What does the industry 74 00:04:04,880 --> 00:04:07,560 Speaker 1: look like in a post COVID world where I might 75 00:04:07,600 --> 00:04:11,080 Speaker 1: actually finally be comfortable having someone sitting next to me 76 00:04:11,120 --> 00:04:14,280 Speaker 1: in that middle seat. Well, I think that that the 77 00:04:14,320 --> 00:04:16,719 Speaker 1: first off, I think that the commercial airlines ED was 78 00:04:16,760 --> 00:04:19,960 Speaker 1: on and at great earnings this quarter. I think that look, 79 00:04:20,000 --> 00:04:23,200 Speaker 1: you're gonna see a roaring twenties trade. People humans want 80 00:04:23,200 --> 00:04:26,400 Speaker 1: to travel, So I think that the good news is uh, 81 00:04:26,440 --> 00:04:29,200 Speaker 1: the high tide, As Warren Buffett said, my old boss 82 00:04:29,520 --> 00:04:33,400 Speaker 1: lifts all boats. I think that our industry, the hospitality industry, 83 00:04:33,440 --> 00:04:35,919 Speaker 1: I can't wait till the cruise industry gets back to 84 00:04:36,279 --> 00:04:39,520 Speaker 1: where it was. I think that, you know, people post COVID, 85 00:04:39,560 --> 00:04:42,120 Speaker 1: I think are going to value experience more than they 86 00:04:42,200 --> 00:04:43,880 Speaker 1: value what they have. So I think we're in the 87 00:04:43,920 --> 00:04:48,320 Speaker 1: experience economy. I think that's it's it's a very hot space, 88 00:04:48,400 --> 00:04:49,719 Speaker 1: and I think it's going to be there for a 89 00:04:49,760 --> 00:04:54,360 Speaker 1: long time. Miss Traveling, Miss Traveling, and call we were 90 00:04:54,400 --> 00:04:56,760 Speaker 1: just joking, we'd be willing to sell our house. I 91 00:04:56,880 --> 00:04:58,960 Speaker 1: drive a Honda just for a chance to get on 92 00:04:59,000 --> 00:05:02,360 Speaker 1: that private jet. Actually right, exactly, real quick, Um, can 93 00:05:02,440 --> 00:05:04,279 Speaker 1: you just give a sense of the competitive landscape for 94 00:05:04,320 --> 00:05:07,440 Speaker 1: you thirty seconds? Yeah, I would say, Look, the only 95 00:05:07,640 --> 00:05:10,440 Speaker 1: thing standing between wheels up and greatness is wheels up. 96 00:05:10,520 --> 00:05:13,479 Speaker 1: I think that we're in a very unique space. Again, 97 00:05:13,520 --> 00:05:16,960 Speaker 1: we're looking to Uber Eyes and airbnbies the space where 98 00:05:17,000 --> 00:05:20,800 Speaker 1: others that we compete with the traditional legacy competitors are 99 00:05:20,800 --> 00:05:23,960 Speaker 1: in the ownership space, which again, you know, does Uber 100 00:05:23,960 --> 00:05:26,480 Speaker 1: compete with Hurts. I'd rather be Uber and that's really 101 00:05:26,480 --> 00:05:29,320 Speaker 1: where wheels up this position fascinating. All right, that's really cool. 102 00:05:29,520 --> 00:05:32,919 Speaker 1: Uh analogy there, Kenny Dictor. We really appreciate you taking 103 00:05:32,920 --> 00:05:34,240 Speaker 1: the time. I know you guys are having a busy 104 00:05:34,320 --> 00:05:37,120 Speaker 1: day today with your listing. Kenny Dictor, founder and CEO 105 00:05:37,279 --> 00:05:40,280 Speaker 1: of Wheels Up. It's a fascinating a part of the 106 00:05:40,400 --> 00:05:45,240 Speaker 1: travel market that's again allah similar to an uber uh 107 00:05:45,400 --> 00:05:48,320 Speaker 1: an Airbnb um. And so the question is, you know, 108 00:05:48,480 --> 00:05:51,680 Speaker 1: how broad can that market be. But as Kenny was 109 00:05:51,720 --> 00:05:54,760 Speaker 1: just mentioning, you know, it feels like people are just 110 00:05:54,880 --> 00:05:58,520 Speaker 1: yearning for those experiences in a post pandemic world, as 111 00:05:58,520 --> 00:06:01,159 Speaker 1: opposed to maybe you know, at sets they're looking more 112 00:06:01,320 --> 00:06:05,480 Speaker 1: for experiences, and that would play certainly in two Wheels Up. 113 00:06:08,920 --> 00:06:11,240 Speaker 1: Let's talk jobs right now. You know, we spend every 114 00:06:11,240 --> 00:06:13,520 Speaker 1: Thursday talking about looking at the jobs claims and once 115 00:06:13,520 --> 00:06:16,679 Speaker 1: a month talking at you know, just the unemployment in general. 116 00:06:16,720 --> 00:06:19,479 Speaker 1: And what we've seen is generally a pretty solid improvement 117 00:06:19,800 --> 00:06:23,839 Speaker 1: coming off those just dramatic job losses of the pandemic 118 00:06:23,920 --> 00:06:26,560 Speaker 1: really hit. But what we've also seen is that women 119 00:06:26,760 --> 00:06:30,240 Speaker 1: have been and continue to be disproportionately hit by the 120 00:06:30,320 --> 00:06:32,560 Speaker 1: labor market and the challenges in the labor market. Let's 121 00:06:32,600 --> 00:06:35,840 Speaker 1: get the latest with Neila Richardson, Chief Economists for a DP, 122 00:06:36,040 --> 00:06:39,440 Speaker 1: cohead of the ADP Research Institute, and she was also 123 00:06:39,520 --> 00:06:41,839 Speaker 1: a senior economist at Bloomberg. Neila, thanks so much for 124 00:06:41,880 --> 00:06:45,160 Speaker 1: joining us here. Help us think about our framemat for us, 125 00:06:45,640 --> 00:06:48,960 Speaker 1: what happened to women in the labor force during the 126 00:06:49,040 --> 00:06:53,480 Speaker 1: pandemic and now during the recovery. Well, first of all, 127 00:06:53,520 --> 00:06:57,719 Speaker 1: it's fantastic to join you on the job topics because 128 00:06:57,720 --> 00:07:00,720 Speaker 1: it's so important right now. But what we've seen with 129 00:07:00,800 --> 00:07:05,240 Speaker 1: women during the pandemic is this complation of work and 130 00:07:05,360 --> 00:07:08,960 Speaker 1: home and that's caused many women to exit the workforce. 131 00:07:08,960 --> 00:07:12,440 Speaker 1: So this has been widely reported. Going into the pandemic, 132 00:07:12,560 --> 00:07:16,400 Speaker 1: women's labor market participation was at an eight year high 133 00:07:16,440 --> 00:07:20,960 Speaker 1: of fifty seven upwards. Off it dropped like a like 134 00:07:21,040 --> 00:07:25,000 Speaker 1: a stone to fifty four percent. Is still starting to recover. 135 00:07:25,080 --> 00:07:28,600 Speaker 1: It's but it's not quite there. And that's just women 136 00:07:28,600 --> 00:07:31,320 Speaker 1: getting in, getting in the door of the workplace, the 137 00:07:31,400 --> 00:07:33,920 Speaker 1: virtual door as it may be. So we wanted to 138 00:07:33,960 --> 00:07:37,000 Speaker 1: look at the actual experience of the women who stayed 139 00:07:37,040 --> 00:07:39,760 Speaker 1: in the workforce. We wanted to look at this kind 140 00:07:39,800 --> 00:07:43,320 Speaker 1: of mass excit due to health concern and layoffs, and 141 00:07:43,400 --> 00:07:46,400 Speaker 1: complate that with what we know is gender pay gaps 142 00:07:46,480 --> 00:07:51,080 Speaker 1: in the workplace. Previous research had told us that women 143 00:07:51,080 --> 00:07:56,480 Speaker 1: made about of what men made overall across industries. We 144 00:07:56,520 --> 00:08:00,880 Speaker 1: saw that that pay gap narrowed to but it's mostly 145 00:08:00,960 --> 00:08:04,720 Speaker 1: because low pay women were forced to leave or dropped 146 00:08:04,960 --> 00:08:08,480 Speaker 1: out of the workforce. These are not real wage games. Now, 147 00:08:08,640 --> 00:08:12,160 Speaker 1: what is the prescription then to fix this? Is it 148 00:08:12,360 --> 00:08:17,000 Speaker 1: having a workforce and companies and employers that indeed are 149 00:08:17,040 --> 00:08:21,240 Speaker 1: more flexible with the return to office. I think that's 150 00:08:21,240 --> 00:08:23,400 Speaker 1: a good start tailor. I mean, if you look at 151 00:08:23,680 --> 00:08:26,720 Speaker 1: women in the workplace, this is you know, it's not 152 00:08:26,800 --> 00:08:29,160 Speaker 1: like we were in a place of rainbows and puppies 153 00:08:29,200 --> 00:08:33,480 Speaker 1: before the pandemic. But things have definitely accelerated in terms 154 00:08:33,480 --> 00:08:37,040 Speaker 1: of challenges after the pandemic. One of those barriers has 155 00:08:37,080 --> 00:08:41,040 Speaker 1: been full time, full capacity employment. And so the concern 156 00:08:41,200 --> 00:08:44,840 Speaker 1: is as companies make this transition, some of them from 157 00:08:44,880 --> 00:08:51,079 Speaker 1: a completely remote environment to a virtual or office environment, 158 00:08:51,480 --> 00:08:55,240 Speaker 1: women will be particularly affected, even if they have a choice, 159 00:08:55,600 --> 00:09:00,480 Speaker 1: because our survey evidence shows that women often feeling comfortable 160 00:09:00,600 --> 00:09:04,160 Speaker 1: taking advantage of remote opportunities even if they have them, 161 00:09:04,480 --> 00:09:07,920 Speaker 1: and so there's still this issue of companies being very 162 00:09:07,960 --> 00:09:12,760 Speaker 1: responsive to women right now, especially considering the takeaups no. 163 00:09:13,000 --> 00:09:14,720 Speaker 1: I mean, one of the big issues obviously is the 164 00:09:14,760 --> 00:09:19,400 Speaker 1: women and home healthcare, and um, we're hearing a lot 165 00:09:19,440 --> 00:09:23,239 Speaker 1: of good rhetoric out of companies about really being sensitive 166 00:09:23,480 --> 00:09:26,840 Speaker 1: to that. Are you seeing any concrete examples that might 167 00:09:26,880 --> 00:09:30,680 Speaker 1: give you hope that, in fact, corporate America is becoming 168 00:09:30,720 --> 00:09:33,840 Speaker 1: more sensitive to these issues as they try to attract 169 00:09:33,840 --> 00:09:37,839 Speaker 1: and retain women. You know that that is the silver 170 00:09:38,000 --> 00:09:42,840 Speaker 1: lining of this whole experience about women in the workplace 171 00:09:42,960 --> 00:09:47,520 Speaker 1: during a very challenging year, companies in corporate America are 172 00:09:47,600 --> 00:09:51,480 Speaker 1: paying more attention to worker health in general more than 173 00:09:51,520 --> 00:09:55,959 Speaker 1: ever before, but also the soft infrastructure that women need 174 00:09:56,040 --> 00:09:58,960 Speaker 1: to actually get to work and be productives, whether that's 175 00:09:59,040 --> 00:10:04,040 Speaker 1: childcare for safe public transportation. So you're seeing companies the 176 00:10:04,080 --> 00:10:07,240 Speaker 1: one more flexible in their work from home prop uh 177 00:10:07,480 --> 00:10:11,760 Speaker 1: prop uh processes, but also having an ear to the 178 00:10:11,880 --> 00:10:15,680 Speaker 1: other things in work life that are meaningful in terms 179 00:10:15,720 --> 00:10:19,040 Speaker 1: of production for women especially. You know, now we only 180 00:10:19,040 --> 00:10:21,160 Speaker 1: have about thirty seconds left. We're not just hearing this 181 00:10:21,240 --> 00:10:24,040 Speaker 1: from companies, We're hearing it from J. Powell himself saying 182 00:10:24,080 --> 00:10:28,080 Speaker 1: that despite substantial improvements for racial and ethnic groups, the 183 00:10:28,120 --> 00:10:32,000 Speaker 1: hardest hit groups still have the most ground left to gain. 184 00:10:32,400 --> 00:10:34,920 Speaker 1: Is the Federal Reserve doing the right thing by focusing 185 00:10:34,960 --> 00:10:40,120 Speaker 1: on this issue and and adjusting monetary policy appropriately. Yes, uh, 186 00:10:40,200 --> 00:10:43,640 Speaker 1: this is these These issues are not new, These historical 187 00:10:43,679 --> 00:10:45,520 Speaker 1: pay gaps are not new, and I think the said 188 00:10:45,600 --> 00:10:48,000 Speaker 1: has been ahead of the curve and recognizing that through 189 00:10:48,080 --> 00:10:51,640 Speaker 1: monetary policy they can lift all boats and those boats 190 00:10:51,679 --> 00:10:54,800 Speaker 1: that are that are lagging behind the rest of the 191 00:10:54,840 --> 00:10:57,480 Speaker 1: economy in terms of the recovery because they've been the 192 00:10:57,559 --> 00:11:00,040 Speaker 1: hardest hit by the pandemic, that the most challenged and 193 00:11:00,440 --> 00:11:04,360 Speaker 1: going into that pandemic. So that policy directed to hard 194 00:11:04,480 --> 00:11:07,800 Speaker 1: hit groups makes sense if you want a full labor 195 00:11:07,840 --> 00:11:13,200 Speaker 1: market recovery where you have the most participation across different demographics, 196 00:11:13,200 --> 00:11:15,760 Speaker 1: including women. Nila, thank you so much for joining us. 197 00:11:15,800 --> 00:11:18,760 Speaker 1: We really appreciate your thoughts and insights are very important topic. 198 00:11:18,920 --> 00:11:21,600 Speaker 1: Neila Richardson, Chief Economists for ADP CO, Head of the 199 00:11:21,640 --> 00:11:29,240 Speaker 1: ADP Research Institute. All right, let's talk ransomware, thank Colonial pipeline, 200 00:11:29,600 --> 00:11:33,760 Speaker 1: JBS meat supplier. I mean, the list is getting longer 201 00:11:33,840 --> 00:11:37,320 Speaker 1: as we speak. It's becoming a big issue. Companies and 202 00:11:37,440 --> 00:11:40,560 Speaker 1: individuals have to protect themselves. UH. To figure out how 203 00:11:40,600 --> 00:11:43,240 Speaker 1: we do that, let's welcome Jason Crabtree. He's co founder 204 00:11:43,280 --> 00:11:46,400 Speaker 1: and CEO of Complex that's spelled with a Q, and 205 00:11:46,400 --> 00:11:49,120 Speaker 1: he's also a former Special Advisor to Commanding General of 206 00:11:49,160 --> 00:11:51,319 Speaker 1: the U. S. Army Cyber Command. Jason, thanks so much 207 00:11:51,320 --> 00:11:54,679 Speaker 1: for joining us here. UM, give us a sense of 208 00:11:55,480 --> 00:11:59,840 Speaker 1: how big and how concerned should we be about ransom 209 00:12:00,120 --> 00:12:02,000 Speaker 1: and I guess just cybersecurity in general. How do you 210 00:12:02,000 --> 00:12:06,320 Speaker 1: guys think about it? Sure? Well, ransomware is just frankly 211 00:12:06,440 --> 00:12:09,800 Speaker 1: continuing to gain steam as we see organizations that are 212 00:12:09,840 --> 00:12:14,160 Speaker 1: far too vulnerable being taken advantage of by really sophisticated 213 00:12:14,280 --> 00:12:18,199 Speaker 1: and sizable transnational criminal organizations that have created a really 214 00:12:18,200 --> 00:12:20,920 Speaker 1: great affiliate network model. I have an awesome business model, 215 00:12:21,240 --> 00:12:23,760 Speaker 1: and they've been able to reap in tens of millions 216 00:12:23,760 --> 00:12:27,200 Speaker 1: of dollars of fees this year alone by exploiting and 217 00:12:27,240 --> 00:12:30,880 Speaker 1: then actually ransoming and effectively holding hostage a bunch of 218 00:12:30,920 --> 00:12:34,160 Speaker 1: companies and governments all over the world. Jason, we should 219 00:12:34,200 --> 00:12:36,840 Speaker 1: note that you are the real deal. As a graduate 220 00:12:36,880 --> 00:12:40,400 Speaker 1: of West Point, your licensed professional engineer looking at the 221 00:12:40,400 --> 00:12:45,960 Speaker 1: power grid, the broader energy system. Um, so you're the 222 00:12:46,040 --> 00:12:50,360 Speaker 1: perfect person to asked sort of big picture? Am I 223 00:12:51,800 --> 00:12:54,480 Speaker 1: making out to be too big of a deal by 224 00:12:54,480 --> 00:12:57,400 Speaker 1: saying that ransomware and cyber security is effectively the new 225 00:12:57,480 --> 00:13:01,280 Speaker 1: way in which some of these states sponsored countries are 226 00:13:01,280 --> 00:13:05,040 Speaker 1: waging war on us, and and how should our companies 227 00:13:05,120 --> 00:13:07,800 Speaker 1: be forced to respond given that this seems to be 228 00:13:07,840 --> 00:13:11,200 Speaker 1: the new frontier. Well, I think there's a couple of 229 00:13:11,240 --> 00:13:14,000 Speaker 1: aspects in this, the first of which is that criminals 230 00:13:14,000 --> 00:13:16,880 Speaker 1: go where the money is right, and they've realized that 231 00:13:16,960 --> 00:13:20,040 Speaker 1: it's quite efficient and effective to go ahead and either 232 00:13:20,160 --> 00:13:23,679 Speaker 1: take over companies like Cassea. Right, so, a US company 233 00:13:23,720 --> 00:13:27,079 Speaker 1: based in Miami, a critical software provider, compromise their customers 234 00:13:27,160 --> 00:13:31,000 Speaker 1: using vulnerabilities and their software just like the Microsoft software vulnerabilities, 235 00:13:31,080 --> 00:13:33,439 Speaker 1: used that to take over their networks and then hold 236 00:13:33,480 --> 00:13:36,480 Speaker 1: all their customers costas. So you saw trains in Sweden, 237 00:13:36,600 --> 00:13:40,679 Speaker 1: pharmacies in Sweden, the largest grocer in Sweden, co Op, 238 00:13:41,120 --> 00:13:44,720 Speaker 1: not able to operate for days as a result of 239 00:13:44,880 --> 00:13:48,960 Speaker 1: a Miami based software and you know vulnerability here at home. 240 00:13:49,080 --> 00:13:51,520 Speaker 1: So this is this is a great way to sit 241 00:13:51,760 --> 00:13:54,720 Speaker 1: you know, anywhere in the world and get paid. I 242 00:13:54,760 --> 00:13:57,160 Speaker 1: think the challenge for us is a society, is our 243 00:13:57,679 --> 00:14:01,280 Speaker 1: companies in our country very digitally dependent. Risk is a 244 00:14:01,320 --> 00:14:03,880 Speaker 1: consequence of dependence. So we've got to do two things. 245 00:14:04,760 --> 00:14:07,760 Speaker 1: We have to increase costing consequence for criminal organizations and 246 00:14:07,760 --> 00:14:10,120 Speaker 1: pursue them around the world. And we also have to 247 00:14:10,160 --> 00:14:13,440 Speaker 1: acknowledge that we are not defending our networks adequately and 248 00:14:13,440 --> 00:14:15,920 Speaker 1: that many of these breaches, including things like GPS and 249 00:14:15,960 --> 00:14:19,200 Speaker 1: colonial we're sort of predictable based on how sort of 250 00:14:19,200 --> 00:14:21,880 Speaker 1: shoddy a lot of the external security posture and other 251 00:14:21,920 --> 00:14:24,480 Speaker 1: capabilities were. And that's not victim blaming. It's the reality 252 00:14:24,480 --> 00:14:28,000 Speaker 1: of under investing in security and having very vulnerable assets 253 00:14:28,040 --> 00:14:30,360 Speaker 1: connected to the Internet. You look like a target. You're 254 00:14:30,360 --> 00:14:32,320 Speaker 1: going to be one. Jason, I'm not sure if this 255 00:14:32,400 --> 00:14:35,600 Speaker 1: is coincidence or not, but the rise of cryptocurrency seems 256 00:14:35,640 --> 00:14:39,160 Speaker 1: to have mirrored somewhat the rise of these ransomware attacks. 257 00:14:39,160 --> 00:14:42,320 Speaker 1: Talk to us about the role that cryptocurrencies play play 258 00:14:42,320 --> 00:14:47,000 Speaker 1: in this whole situation. Well, certainly, people like Putin have 259 00:14:47,320 --> 00:14:52,360 Speaker 1: strongly encouraged alternatives to international monetary transfer right, so things 260 00:14:52,400 --> 00:14:55,760 Speaker 1: like swift that are actually much more both monitored and secure, 261 00:14:56,200 --> 00:15:00,320 Speaker 1: so you know, non fungible tokens. Cryptocurrencies are certainly part 262 00:15:00,320 --> 00:15:04,480 Speaker 1: of the story, but fundamentally, ransomware has been going on 263 00:15:04,680 --> 00:15:08,280 Speaker 1: before crypto is mainstream in this context, and frankly they'll 264 00:15:08,280 --> 00:15:10,960 Speaker 1: continue afterwards. But it's it's a contributing factor, but it's 265 00:15:11,000 --> 00:15:14,320 Speaker 1: not the cause of the rampant vulnerability or the tremendous 266 00:15:14,360 --> 00:15:16,560 Speaker 1: leverage you can get over a company when you shut 267 00:15:16,600 --> 00:15:19,640 Speaker 1: down its operations. It's not just companies. Remember the city 268 00:15:19,680 --> 00:15:22,680 Speaker 1: of Atlanta, right, tens of millions of dollars in recovery 269 00:15:22,680 --> 00:15:25,280 Speaker 1: costs school districts in Baltimore. I mean, this is something 270 00:15:25,280 --> 00:15:28,400 Speaker 1: that's affecting you know, state discor organizations, just like it's 271 00:15:28,400 --> 00:15:32,400 Speaker 1: affecting big businesses. I am curious what types of companies 272 00:15:32,440 --> 00:15:34,520 Speaker 1: are coming to you and saying that they are in 273 00:15:34,640 --> 00:15:40,320 Speaker 1: most need for your services. Yes, so, our business services 274 00:15:40,400 --> 00:15:45,120 Speaker 1: some of the most prestigious banks technology companies around the world. Um, 275 00:15:45,320 --> 00:15:48,000 Speaker 1: so we work you know, in dozens of countries with 276 00:15:48,240 --> 00:15:50,720 Speaker 1: very very large organizations where we you know, many of 277 00:15:50,760 --> 00:15:54,120 Speaker 1: our clients have tens of thousands of employees or hundreds 278 00:15:54,120 --> 00:15:56,760 Speaker 1: of thousands in some cases, so we really help them 279 00:15:56,760 --> 00:16:00,280 Speaker 1: make sure that the catastrophic breach risks aren't there. We're 280 00:16:00,400 --> 00:16:02,080 Speaker 1: a bit of an air bag in the car crash, right, 281 00:16:02,080 --> 00:16:04,240 Speaker 1: we help you walk away. Um. I think one of 282 00:16:04,280 --> 00:16:06,680 Speaker 1: the challenges for people, and you're seeing this actually this 283 00:16:06,760 --> 00:16:11,680 Speaker 1: week with another deadly vulnerability and Microsoft software related to 284 00:16:11,760 --> 00:16:14,760 Speaker 1: print spoolers, which is very geeky, but fundamentally it allows 285 00:16:14,760 --> 00:16:17,080 Speaker 1: people to take over the identity infrastructure. And we saw 286 00:16:17,080 --> 00:16:20,160 Speaker 1: assists of the Cyber Security Infrastructure Security Agency here in 287 00:16:20,160 --> 00:16:23,360 Speaker 1: the United States just issue a really urgent alert yesterday 288 00:16:23,360 --> 00:16:26,480 Speaker 1: because people were taking over identity infrastructure. Remember that's exactly 289 00:16:26,520 --> 00:16:28,680 Speaker 1: what Russia did in the midst of the solar wind 290 00:16:28,720 --> 00:16:32,640 Speaker 1: pack to take over major important organizations like Department of Justice, 291 00:16:32,640 --> 00:16:36,280 Speaker 1: Department of Treasury. Uh Jason just about thirty seconds. How 292 00:16:36,360 --> 00:16:39,400 Speaker 1: much of this ransomware and cyber issues cyber crime is 293 00:16:39,440 --> 00:16:42,680 Speaker 1: state sponsored? Do you think versus just some guy in 294 00:16:42,760 --> 00:16:46,920 Speaker 1: a garage. Well, so, the reality of these are sophisticated 295 00:16:46,920 --> 00:16:50,360 Speaker 1: criminal organizations. And remember most of them do operate out 296 00:16:50,360 --> 00:16:54,320 Speaker 1: of places that are strongly influenced or controlled by Putin 297 00:16:54,840 --> 00:17:00,120 Speaker 1: Iran North Korea, so it's certainly been actively tolerated. Are 298 00:17:00,160 --> 00:17:02,640 Speaker 1: known about and I think been quite useful to undermine 299 00:17:02,640 --> 00:17:06,120 Speaker 1: the last. But we've seen less evidence or no evidence 300 00:17:06,160 --> 00:17:09,040 Speaker 1: in some cases of overt sponsorship. But remember these Folkstentis 301 00:17:09,160 --> 00:17:13,000 Speaker 1: permit tremendously. Yeah. Absolutely, Jason Crabtree, thank you so much 302 00:17:13,000 --> 00:17:15,760 Speaker 1: for joining us. Really fascinating discussion. Jason Crabtree. He's a 303 00:17:15,760 --> 00:17:19,440 Speaker 1: co founder and CEO of Complex, former special advisor to 304 00:17:19,560 --> 00:17:22,240 Speaker 1: the Commanding General the U. S. Army Cyber Command, so 305 00:17:22,280 --> 00:17:25,040 Speaker 1: he certainly knows what he's talking about. And again, as 306 00:17:25,240 --> 00:17:28,200 Speaker 1: um uh, you know we were talking about it seems 307 00:17:28,200 --> 00:17:31,200 Speaker 1: like this is an issue cybersecurity broadly defined as teller's 308 00:17:31,240 --> 00:17:33,920 Speaker 1: mentioning is a big issue. It's it seems like it's 309 00:17:33,920 --> 00:17:36,240 Speaker 1: in its early innings and it's something that corporate America 310 00:17:36,280 --> 00:17:38,000 Speaker 1: and individuals need to pay more attention to. Well, the 311 00:17:38,080 --> 00:17:44,000 Speaker 1: more coming up this is Bloomberg Taylor. You know, it's 312 00:17:44,000 --> 00:17:47,400 Speaker 1: a busy bank earnings day when Shannali Bossik, Wall Street 313 00:17:47,400 --> 00:17:50,639 Speaker 1: reporter for Bloomberg News literally is running from the TV 314 00:17:50,840 --> 00:17:54,800 Speaker 1: studio to our radio studio because she has so many 315 00:17:54,920 --> 00:17:58,800 Speaker 1: different obligations to do. She is running around for us 316 00:17:58,840 --> 00:18:01,840 Speaker 1: covering not only the Gray m Live t Live blog 317 00:18:01,920 --> 00:18:04,360 Speaker 1: that we have on the Bloomberg terminal. But joining us 318 00:18:04,359 --> 00:18:06,679 Speaker 1: for radio and TV. What a slew of earnings And 319 00:18:06,760 --> 00:18:09,760 Speaker 1: you know this from your days, Paul of Uh, just 320 00:18:09,800 --> 00:18:12,480 Speaker 1: what crazy days these are listening to both the analysts 321 00:18:12,520 --> 00:18:14,639 Speaker 1: and the media call and of course the earnings report, 322 00:18:14,680 --> 00:18:16,920 Speaker 1: and I just think it's so silly for these big, 323 00:18:16,920 --> 00:18:19,640 Speaker 1: big banks all to report on one day. It's just ridiculous. 324 00:18:19,640 --> 00:18:21,440 Speaker 1: Spread it out a little bit. But anyway, Shanali, thanks 325 00:18:21,440 --> 00:18:23,160 Speaker 1: so much for joining us here again we get Bank 326 00:18:23,160 --> 00:18:26,040 Speaker 1: of America, City Group, Wells Fargo. When I think of 327 00:18:26,160 --> 00:18:29,520 Speaker 1: these institutions as opposed to the Goldman's and JP Morgan's 328 00:18:29,520 --> 00:18:34,200 Speaker 1: and Morgan Stanley's, I think of corporate banking, consumer banking, 329 00:18:34,359 --> 00:18:37,280 Speaker 1: making loans net interest margin, and I think one of 330 00:18:37,320 --> 00:18:40,920 Speaker 1: the takeaways was the loan growth really isn't there? Is it? 331 00:18:41,040 --> 00:18:43,200 Speaker 1: You know, it's so funny because on these conference calls 332 00:18:43,240 --> 00:18:46,000 Speaker 1: this morning, Bank of America with journalists and analysts, same 333 00:18:46,040 --> 00:18:48,280 Speaker 1: with City Group, they're trying to convince people that this 334 00:18:48,400 --> 00:18:50,640 Speaker 1: loan growth will come back, that it will be there. 335 00:18:50,640 --> 00:18:53,800 Speaker 1: But you can see from the investor reaction that they'll 336 00:18:53,840 --> 00:18:56,399 Speaker 1: believe it when they'll see it right, that they're just 337 00:18:56,520 --> 00:18:59,000 Speaker 1: not buying this, Yet how much of this can be 338 00:18:59,280 --> 00:19:02,920 Speaker 1: one offs? I in everyone was really working on sort 339 00:19:02,920 --> 00:19:06,520 Speaker 1: of wrapping up our balance sheets right, making sure that 340 00:19:06,560 --> 00:19:08,000 Speaker 1: if you were laid off or what you do with 341 00:19:08,040 --> 00:19:10,520 Speaker 1: the stimulus checks was paying off some of your dead 342 00:19:10,960 --> 00:19:13,280 Speaker 1: is their appetite for people to want to take on 343 00:19:13,480 --> 00:19:17,240 Speaker 1: new loan. It's self fascinating because from this you're seeing 344 00:19:17,359 --> 00:19:22,359 Speaker 1: wealthier individuals expand their loan on average, with the biggest 345 00:19:22,359 --> 00:19:25,080 Speaker 1: banks Bank of America, JP, Morgan Goldman sacts sometimes at 346 00:19:25,160 --> 00:19:27,560 Speaker 1: very fast paces. Will be very interesting, by the way, 347 00:19:27,560 --> 00:19:29,399 Speaker 1: to see what that looks like in Morgan Stanley Tomorrow, 348 00:19:29,440 --> 00:19:33,000 Speaker 1: which really excels in this space. But the average consumer 349 00:19:33,080 --> 00:19:35,400 Speaker 1: is not borrowing. So you've got to wonder why there's 350 00:19:35,440 --> 00:19:38,600 Speaker 1: such a divergence for the wealthiest of America to lever 351 00:19:38,760 --> 00:19:40,880 Speaker 1: up the way they are, and then where are they 352 00:19:40,920 --> 00:19:45,040 Speaker 1: deploying those funds right investments and whatnot. Another interesting thing 353 00:19:45,080 --> 00:19:47,440 Speaker 1: that I can't really get over because it matters so 354 00:19:47,520 --> 00:19:50,080 Speaker 1: much to markets is Bank of America said that they 355 00:19:50,080 --> 00:19:53,119 Speaker 1: are sitting on so much dry powder that they are 356 00:19:53,160 --> 00:19:56,399 Speaker 1: deploying this into securities, So don't worry so much about 357 00:19:56,440 --> 00:19:59,719 Speaker 1: the loans. They're they're putting it to make markets. They 358 00:19:59,760 --> 00:20:02,879 Speaker 1: all so said, we're not a hedge fund, so you 359 00:20:02,920 --> 00:20:05,800 Speaker 1: know clearly there is a limit to how much risk 360 00:20:05,800 --> 00:20:08,000 Speaker 1: they'll take on. I've been watching this over at JP 361 00:20:08,080 --> 00:20:12,080 Speaker 1: Morgan as well. Their value at risk has dropped significantly. However, again, 362 00:20:12,160 --> 00:20:15,119 Speaker 1: this dry powder is so interesting at a time where 363 00:20:15,200 --> 00:20:18,119 Speaker 1: global banking is in an upheaval. It's in a total 364 00:20:18,200 --> 00:20:22,000 Speaker 1: shake up, and the American banks and Frankly City in 365 00:20:22,040 --> 00:20:24,840 Speaker 1: Bank of America, which have less share than their bigger 366 00:20:24,880 --> 00:20:27,880 Speaker 1: three peers, has room to take some of that share 367 00:20:27,920 --> 00:20:31,119 Speaker 1: and markets. How about the credit quality discussion. What are 368 00:20:31,160 --> 00:20:34,240 Speaker 1: the banks saying as to the quality of their loan portfolio. 369 00:20:34,359 --> 00:20:36,399 Speaker 1: I mean, again, we've come through this once in a 370 00:20:36,440 --> 00:20:40,280 Speaker 1: lifetime pandemic and economic disruption, but it seems like, you know, 371 00:20:40,359 --> 00:20:44,000 Speaker 1: individuals and corporations are kind of doing okay. I can't 372 00:20:44,000 --> 00:20:46,480 Speaker 1: get over what it must be like to be a 373 00:20:46,480 --> 00:20:48,800 Speaker 1: banker right now and not get the love from investors. 374 00:20:48,840 --> 00:20:53,640 Speaker 1: When the consumer is in such apparently decent shape. They're 375 00:20:53,680 --> 00:20:57,560 Speaker 1: paying down their balances, which is why loans are pretty 376 00:20:57,600 --> 00:21:00,840 Speaker 1: flat everywhere. I gotta say, the one place that I'm 377 00:21:00,880 --> 00:21:04,320 Speaker 1: concerned about is Holmes, Uh, that is where they're seeing 378 00:21:04,320 --> 00:21:07,240 Speaker 1: lower balances at a lot of these banks, and that 379 00:21:07,400 --> 00:21:10,440 Speaker 1: wasn't the case as we know before. So what are 380 00:21:10,480 --> 00:21:14,120 Speaker 1: people actually lending borrowing for it? That's not clear to me. 381 00:21:14,400 --> 00:21:17,520 Speaker 1: They're spending more, they're just not borrowing more. So much 382 00:21:17,560 --> 00:21:20,000 Speaker 1: of this can be I think about Walls Fargo. What 383 00:21:20,040 --> 00:21:21,919 Speaker 1: do you think of home loans, auto loans, you name it. 384 00:21:21,920 --> 00:21:25,200 Speaker 1: We're gonna speaking with the Walls Fargo CFO Mike Santo 385 00:21:25,560 --> 00:21:29,080 Speaker 1: Massimo just after the closing bell. If you had one 386 00:21:29,160 --> 00:21:32,760 Speaker 1: question you'd want to ask him. What would it be? Oh? Boy? 387 00:21:32,840 --> 00:21:35,119 Speaker 1: How much is the asset cap by the numbers and 388 00:21:35,320 --> 00:21:38,119 Speaker 1: impacting them? Still? Right? How much of it is? What 389 00:21:38,200 --> 00:21:40,040 Speaker 1: do you define with the asset cap? Is? It is 390 00:21:40,080 --> 00:21:43,119 Speaker 1: basically the Federal Reserve saying that you can't get your 391 00:21:43,119 --> 00:21:45,080 Speaker 1: assets over a certain amount, you cannot be lowing you 392 00:21:45,160 --> 00:21:48,720 Speaker 1: in the time out box. Yeah, I mean it is never. 393 00:21:48,880 --> 00:21:51,120 Speaker 1: I mean that is really an unprecedented type of punishment 394 00:21:51,119 --> 00:21:53,560 Speaker 1: that's spooked all of Wall Street when it happened. Right, 395 00:21:53,920 --> 00:21:58,080 Speaker 1: banks are afraid to behave badly? Are they the only 396 00:21:58,200 --> 00:22:01,400 Speaker 1: big bank that has a asset cap? Correct? And remember 397 00:22:01,440 --> 00:22:04,720 Speaker 1: this is still relatively early days for Charlie Sharff, the 398 00:22:04,760 --> 00:22:07,200 Speaker 1: new CEO, who's also treating seeking to keep it lit 399 00:22:07,200 --> 00:22:10,320 Speaker 1: on costs. The bank is becoming more efficient. They and 400 00:22:10,560 --> 00:22:13,159 Speaker 1: Bank of America this morning said headcount has dropped by 401 00:22:13,200 --> 00:22:16,600 Speaker 1: thousands in the last quarter alone. Is that intentional? I 402 00:22:16,600 --> 00:22:18,119 Speaker 1: think there are two things. I think part of it 403 00:22:18,160 --> 00:22:21,000 Speaker 1: is intentional. Bank of America talked about that shifted digital 404 00:22:21,240 --> 00:22:24,400 Speaker 1: in that retail business. But also they're paying people more, 405 00:22:24,800 --> 00:22:28,439 Speaker 1: so wages are going up, so head count must go 406 00:22:28,520 --> 00:22:31,399 Speaker 1: down if you're controlling costs. So I'm just looking at 407 00:22:31,400 --> 00:22:34,359 Speaker 1: the stock prices, you know, wells Fargo up, I guess 408 00:22:34,680 --> 00:22:38,040 Speaker 1: forty year to date. Looking at some of those other 409 00:22:38,240 --> 00:22:42,520 Speaker 1: kind of you know, uh, commercial banks out there, that's 410 00:22:42,520 --> 00:22:45,199 Speaker 1: a pretty good performance. So it looks like the streets 411 00:22:45,200 --> 00:22:47,920 Speaker 1: giving this new management team or just I guess, and 412 00:22:48,000 --> 00:22:51,960 Speaker 1: this turnaround plans some credit incidents, and you know, similarly 413 00:22:52,000 --> 00:22:55,000 Speaker 1: at City Group, this is Jane Fraser's first full quarter 414 00:22:55,200 --> 00:22:57,840 Speaker 1: s CEO. We saw the stock up in the morning 415 00:22:57,840 --> 00:22:59,880 Speaker 1: and now it's moderated a bit like it's ending fly 416 00:23:00,359 --> 00:23:02,639 Speaker 1: their cheaper than on the other banks. You've got to 417 00:23:02,680 --> 00:23:05,680 Speaker 1: wonder whether Wall Street will give her the same kind 418 00:23:05,720 --> 00:23:08,080 Speaker 1: of grace period that they've given Charlie Sharfs and she, 419 00:23:08,200 --> 00:23:10,320 Speaker 1: to her credit, have been one of the few that 420 00:23:10,400 --> 00:23:13,840 Speaker 1: have embraced the more flexible lifestyle. I'm gonna be that 421 00:23:14,080 --> 00:23:17,920 Speaker 1: Millennia brings that up in her being a woman, really 422 00:23:18,040 --> 00:23:22,520 Speaker 1: understanding the need, particularly for women. Though everyone across the 423 00:23:22,560 --> 00:23:25,879 Speaker 1: board feeling this, the need for flexibility, where are we 424 00:23:26,000 --> 00:23:28,919 Speaker 1: and who is doing what? It's so funny because you 425 00:23:28,920 --> 00:23:30,760 Speaker 1: and I talked about this earlier this week that one 426 00:23:30,800 --> 00:23:33,800 Speaker 1: of Goldman's top investment bankers they had had more than 427 00:23:34,359 --> 00:23:36,400 Speaker 1: of the market share of M and A, and so 428 00:23:36,560 --> 00:23:40,840 Speaker 1: did JP Morgan. Goldman's told me that, you know, part 429 00:23:40,880 --> 00:23:42,560 Speaker 1: of this is coming back to work and being there 430 00:23:42,560 --> 00:23:45,960 Speaker 1: for clients. That absolutely helps market share. But for City Group, 431 00:23:46,000 --> 00:23:49,880 Speaker 1: what their plan here is to retain an attract most 432 00:23:49,920 --> 00:23:52,120 Speaker 1: importantly talent, and Paul, you and I have talked about 433 00:23:52,160 --> 00:23:56,680 Speaker 1: that so much. This game of musical chairs on Wall 434 00:23:56,720 --> 00:23:59,800 Speaker 1: Street must be one of the hottest we've seen in years. 435 00:24:00,119 --> 00:24:03,280 Speaker 1: One bank president told me that every day, right we've 436 00:24:03,280 --> 00:24:04,959 Speaker 1: talked about this, every day he's coming in and a 437 00:24:04,960 --> 00:24:07,840 Speaker 1: new banker is either threatening to leave or asking for 438 00:24:07,920 --> 00:24:10,679 Speaker 1: new terms of their employment there. And it is just 439 00:24:10,960 --> 00:24:14,680 Speaker 1: a hot market for jobs. What's it's it's interesting. You 440 00:24:14,720 --> 00:24:16,919 Speaker 1: know we're going to hear from the European banks, I 441 00:24:16,920 --> 00:24:21,000 Speaker 1: guess later. Um is the theme that US banks aren't 442 00:24:21,000 --> 00:24:24,880 Speaker 1: fact taking global market share, certainly because you see these 443 00:24:24,880 --> 00:24:27,960 Speaker 1: banks eyeing that weakness over there in Europe because they've 444 00:24:28,280 --> 00:24:31,280 Speaker 1: not only have had they had those extra regulatory constraints 445 00:24:31,320 --> 00:24:35,560 Speaker 1: since the last financial crisis, they have also had even 446 00:24:35,560 --> 00:24:39,920 Speaker 1: more so of a regulatory constraints since this COVID crisis. 447 00:24:40,320 --> 00:24:43,840 Speaker 1: So you know, you can bet your dollar that Goldman 448 00:24:43,880 --> 00:24:46,840 Speaker 1: and JP Morgan are ready to take that share in 449 00:24:46,840 --> 00:24:49,920 Speaker 1: Europe and in the US when it comes to those clients. Interesting, 450 00:24:49,960 --> 00:24:51,560 Speaker 1: I'll be interested to hear from the Deutsche banks of 451 00:24:51,600 --> 00:24:53,679 Speaker 1: the world and the Barclays and things like that to 452 00:24:53,680 --> 00:24:56,760 Speaker 1: see how they're performing visa VI. The U S peers say, Bassk, 453 00:24:56,800 --> 00:24:59,440 Speaker 1: thank you so much, Thank you so for rushing over 454 00:24:59,480 --> 00:25:02,240 Speaker 1: from TV to radio. We appreciate your efforts. Shinelli Bassak, 455 00:25:02,520 --> 00:25:05,399 Speaker 1: Wall Street reporter for Bloomberg News, joining us here in 456 00:25:05,400 --> 00:25:10,479 Speaker 1: our beautiful Bloomberg Interactive broker's studio. So again, Uh Taylor 457 00:25:10,520 --> 00:25:14,520 Speaker 1: got Morgan Stanley Uh tomorrow, Uh, pretty high bar for 458 00:25:14,600 --> 00:25:16,480 Speaker 1: some of the some of the performances there. Yeah, at 459 00:25:16,520 --> 00:25:18,000 Speaker 1: least when it comes to M and A and invest 460 00:25:18,040 --> 00:25:21,119 Speaker 1: in banking. Reminder, we've brand Moyniham at three thirty, followed 461 00:25:21,119 --> 00:25:23,959 Speaker 1: by wals Bargo, CFO just after the closing belt. Awesome. 462 00:25:24,000 --> 00:25:25,840 Speaker 1: So you guys have got the lineup, got it all 463 00:25:25,840 --> 00:25:28,439 Speaker 1: covered from the bank's perspective, and uh, you know, we 464 00:25:28,640 --> 00:25:31,719 Speaker 1: will certainly cover the remainder of these bank earnings as 465 00:25:31,760 --> 00:25:35,760 Speaker 1: we continue this earning season. This is Bloomberg. Thanks for 466 00:25:35,800 --> 00:25:39,320 Speaker 1: listening to the Bloomberg Markets podcast. You can subscribe and 467 00:25:39,359 --> 00:25:43,400 Speaker 1: listen to interviews with Apple Podcasts or whatever podcast platform 468 00:25:43,440 --> 00:25:46,760 Speaker 1: you prefer. I'm Matt Miller. I'm on Twitter at Matt 469 00:25:46,800 --> 00:25:50,320 Speaker 1: Miller three. Got on Ball Sweeney. I'm on Twitter at 470 00:25:50,359 --> 00:25:53,199 Speaker 1: pt Sweeney. Before the podcast. You can always catch us 471 00:25:53,280 --> 00:25:54,880 Speaker 1: worldwide at Bloomberg Radio.