Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
Speaker 1: my co host Matt Miller. Every business day we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. Let's talk private aviation
Speaker 1: only something I can aspire to um in the t
Speaker 1: s A lines like the rest of you. Um. Kenny Dickter,
Speaker 1: founder and CEO of Wheels up there, based in New
Speaker 1: York City. They went public today. Vas back. I'm looking
Speaker 1: at that stock. It's got a great ticker symbol up,
Speaker 1: up and a stock is trading up about eight point
Speaker 1: nine percent in early in trading this morning. Kenny, thanks
Speaker 1: so much for joining us. Congratulations again on your listing.
Speaker 1: Talk to us about the private aviation business. How has
Speaker 1: it changed over the years and particularly in the last
Speaker 1: eighteen months. Give us a sense of that business. Well,
Speaker 1: I would say, like our ticker symbol, it's up and uh,
Speaker 1: I would say, we're in the business of democratizing private aviation.
Speaker 1: So while I think that you're going to continue to
Speaker 1: travel commercially with you and your family. I think there
Speaker 1: will be parts, places and times where we can actually
Speaker 1: swing an airplane for a guy like you. So again,
Speaker 1: we're bringing this to more people, bigger addressable market. We're
Speaker 1: uberizing the space where Airbnb eising the space, and just
Speaker 1: making this more accessible to more people. Part of that
Speaker 1: is you talk about a strategic partnership with Delta Airlines.
Speaker 1: What can members then benefit from the Delta Airline strategic partnership. Well,
Speaker 1: the great news about the Delta partnership and we were
Speaker 1: able to do that deal off market with Ed Bastion
Speaker 1: eighteen months ago, and by the way, in that deal
Speaker 1: that contributed his private jet business and they became our
Speaker 1: largest shareholder. Um So, a couple of things about the
Speaker 1: Delta deal. One is it made Delta easily and seamlessly
Speaker 1: accessible to our client base, which, by the way, travels
Speaker 1: commercially on long haul most of our clients most of
Speaker 1: the time. So you can put a Hunter thousand dollars
Speaker 1: down on wheels up and you can use that capital
Speaker 1: to fly Delta. Conversely, Delta's first class business class and
Speaker 1: Bob Summers and their business customers over at Delta now
Speaker 1: have access to last mile. So if you're a business
Speaker 1: and you're traveling with a couple of people from l
Speaker 1: A X to JFK, you can jump on your Porsche,
Speaker 1: which again is a partnership that we just announced. It
Speaker 1: will take you wing to wing to the private terminal
Speaker 1: and will fly to your your last mile destination, whether
Speaker 1: that's Schenectady, New York, or whether that's you know, Vermont
Speaker 1: or a tough to get to place in Rhode Island. Uh.
Speaker 1: That's that's really the magic of the Delta deal. Can
Speaker 1: he tell us about the typical Wheels Up customer? Give
Speaker 1: us a profile. The profile is anybody that's worked very hard.
Speaker 1: I like to say that we appeal to the working
Speaker 1: wealthy top one to three, which by the way, could
Speaker 1: be ten, fifteen or twenty million people deep. Uh. Any
Speaker 1: business that's doing ten to twenty million dollars and a revenue, Uh,
Speaker 1: they need to It's an essential for them to have
Speaker 1: a Wheels Up membership and have access to our fleet
Speaker 1: of thousands of airplanes. And uh, you know, we did
Speaker 1: this fact merger with Robbie Tochran and Scott Dank and
Speaker 1: his crew over at El Cadaton Robbie had twenty years
Speaker 1: experience with LVMH, so luxury brand lifestyle person. But more
Speaker 1: important he was based in Asia, uh chairman of LVMH
Speaker 1: Asia Scott. You know El Cataton uh, the finest private
Speaker 1: equity firm on a global basis out there. So we
Speaker 1: picked the perfect partner in this back and then we
Speaker 1: got to with our cap table. We had t Row Fidelity,
Speaker 1: Franklin Templeton. We got to choose our equity partners here
Speaker 1: almost by appointment. We did a zoom road show in
Speaker 1: late January. We ended up seeing thirty five companies, twenty
Speaker 1: seven of them invested, including folks like Third Point, Henry
Speaker 1: ellen Bogan and his crew with durable capital, longtime supporters,
Speaker 1: and some other great equity firms that are in this
Speaker 1: for the long haul with us. What does the industry
Speaker 1: look like in a post COVID world where I might
Speaker 1: actually finally be comfortable having someone sitting next to me
Speaker 1: in that middle seat. Well, I think that that the
Speaker 1: first off, I think that the commercial airlines ED was
Speaker 1: on and at great earnings this quarter. I think that look,
Speaker 1: you're gonna see a roaring twenties trade. People humans want
Speaker 1: to travel, So I think that the good news is uh,
Speaker 1: the high tide, As Warren Buffett said, my old boss
Speaker 1: lifts all boats. I think that our industry, the hospitality industry,
Speaker 1: I can't wait till the cruise industry gets back to
Speaker 1: where it was. I think that, you know, people post COVID,
Speaker 1: I think are going to value experience more than they
Speaker 1: value what they have. So I think we're in the
Speaker 1: experience economy. I think that's it's it's a very hot space,
Speaker 1: and I think it's going to be there for a
Speaker 1: long time. Miss Traveling, Miss Traveling, and call we were
Speaker 1: just joking, we'd be willing to sell our house. I
Speaker 1: drive a Honda just for a chance to get on
Speaker 1: that private jet. Actually right, exactly, real quick, Um, can
Speaker 1: you just give a sense of the competitive landscape for
Speaker 1: you thirty seconds? Yeah, I would say, Look, the only
Speaker 1: thing standing between wheels up and greatness is wheels up.
Speaker 1: I think that we're in a very unique space. Again,
Speaker 1: we're looking to Uber Eyes and airbnbies the space where
Speaker 1: others that we compete with the traditional legacy competitors are
Speaker 1: in the ownership space, which again, you know, does Uber
Speaker 1: compete with Hurts. I'd rather be Uber and that's really
Speaker 1: where wheels up this position fascinating. All right, that's really cool.
Speaker 1: Uh analogy there, Kenny Dictor. We really appreciate you taking
Speaker 1: the time. I know you guys are having a busy
Speaker 1: day today with your listing. Kenny Dictor, founder and CEO
Speaker 1: of Wheels Up. It's a fascinating a part of the
Speaker 1: travel market that's again allah similar to an uber uh
Speaker 1: an Airbnb um. And so the question is, you know,
Speaker 1: how broad can that market be. But as Kenny was
Speaker 1: just mentioning, you know, it feels like people are just
Speaker 1: yearning for those experiences in a post pandemic world, as
Speaker 1: opposed to maybe you know, at sets they're looking more
Speaker 1: for experiences, and that would play certainly in two Wheels Up.
Speaker 1: Let's talk jobs right now. You know, we spend every
Speaker 1: Thursday talking about looking at the jobs claims and once
Speaker 1: a month talking at you know, just the unemployment in general.
Speaker 1: And what we've seen is generally a pretty solid improvement
Speaker 1: coming off those just dramatic job losses of the pandemic
Speaker 1: really hit. But what we've also seen is that women
Speaker 1: have been and continue to be disproportionately hit by the
Speaker 1: labor market and the challenges in the labor market. Let's
Speaker 1: get the latest with Neila Richardson, Chief Economists for a DP,
Speaker 1: cohead of the ADP Research Institute, and she was also
Speaker 1: a senior economist at Bloomberg. Neila, thanks so much for
Speaker 1: joining us here. Help us think about our framemat for us,
Speaker 1: what happened to women in the labor force during the
Speaker 1: pandemic and now during the recovery. Well, first of all,
Speaker 1: it's fantastic to join you on the job topics because
Speaker 1: it's so important right now. But what we've seen with
Speaker 1: women during the pandemic is this complation of work and
Speaker 1: home and that's caused many women to exit the workforce.
Speaker 1: So this has been widely reported. Going into the pandemic,
Speaker 1: women's labor market participation was at an eight year high
Speaker 1: of fifty seven upwards. Off it dropped like a like
Speaker 1: a stone to fifty four percent. Is still starting to recover.
Speaker 1: It's but it's not quite there. And that's just women
Speaker 1: getting in, getting in the door of the workplace, the
Speaker 1: virtual door as it may be. So we wanted to
Speaker 1: look at the actual experience of the women who stayed
Speaker 1: in the workforce. We wanted to look at this kind
Speaker 1: of mass excit due to health concern and layoffs, and
Speaker 1: complate that with what we know is gender pay gaps
Speaker 1: in the workplace. Previous research had told us that women
Speaker 1: made about of what men made overall across industries. We
Speaker 1: saw that that pay gap narrowed to but it's mostly
Speaker 1: because low pay women were forced to leave or dropped
Speaker 1: out of the workforce. These are not real wage games. Now,
Speaker 1: what is the prescription then to fix this? Is it
Speaker 1: having a workforce and companies and employers that indeed are
Speaker 1: more flexible with the return to office. I think that's
Speaker 1: a good start tailor. I mean, if you look at
Speaker 1: women in the workplace, this is you know, it's not
Speaker 1: like we were in a place of rainbows and puppies
Speaker 1: before the pandemic. But things have definitely accelerated in terms
Speaker 1: of challenges after the pandemic. One of those barriers has
Speaker 1: been full time, full capacity employment. And so the concern
Speaker 1: is as companies make this transition, some of them from
Speaker 1: a completely remote environment to a virtual or office environment,
Speaker 1: women will be particularly affected, even if they have a choice,
Speaker 1: because our survey evidence shows that women often feeling comfortable
Speaker 1: taking advantage of remote opportunities even if they have them,
Speaker 1: and so there's still this issue of companies being very
Speaker 1: responsive to women right now, especially considering the takeaups no.
Speaker 1: I mean, one of the big issues obviously is the
Speaker 1: women and home healthcare, and um, we're hearing a lot
Speaker 1: of good rhetoric out of companies about really being sensitive
Speaker 1: to that. Are you seeing any concrete examples that might
Speaker 1: give you hope that, in fact, corporate America is becoming
Speaker 1: more sensitive to these issues as they try to attract
Speaker 1: and retain women. You know that that is the silver
Speaker 1: lining of this whole experience about women in the workplace
Speaker 1: during a very challenging year, companies in corporate America are
Speaker 1: paying more attention to worker health in general more than
Speaker 1: ever before, but also the soft infrastructure that women need
Speaker 1: to actually get to work and be productives, whether that's
Speaker 1: childcare for safe public transportation. So you're seeing companies the
Speaker 1: one more flexible in their work from home prop uh
Speaker 1: prop uh processes, but also having an ear to the
Speaker 1: other things in work life that are meaningful in terms
Speaker 1: of production for women especially. You know, now we only
Speaker 1: have about thirty seconds left. We're not just hearing this
Speaker 1: from companies, We're hearing it from J. Powell himself saying
Speaker 1: that despite substantial improvements for racial and ethnic groups, the
Speaker 1: hardest hit groups still have the most ground left to gain.
Speaker 1: Is the Federal Reserve doing the right thing by focusing
Speaker 1: on this issue and and adjusting monetary policy appropriately. Yes, uh,
Speaker 1: this is these These issues are not new, These historical
Speaker 1: pay gaps are not new, and I think the said
Speaker 1: has been ahead of the curve and recognizing that through
Speaker 1: monetary policy they can lift all boats and those boats
Speaker 1: that are that are lagging behind the rest of the
Speaker 1: economy in terms of the recovery because they've been the
Speaker 1: hardest hit by the pandemic, that the most challenged and
Speaker 1: going into that pandemic. So that policy directed to hard
Speaker 1: hit groups makes sense if you want a full labor
Speaker 1: market recovery where you have the most participation across different demographics,
Speaker 1: including women. Nila, thank you so much for joining us.
Speaker 1: We really appreciate your thoughts and insights are very important topic.
Speaker 1: Neila Richardson, Chief Economists for ADP CO, Head of the
Speaker 1: ADP Research Institute. All right, let's talk ransomware, thank Colonial pipeline,
Speaker 1: JBS meat supplier. I mean, the list is getting longer
Speaker 1: as we speak. It's becoming a big issue. Companies and
Speaker 1: individuals have to protect themselves. UH. To figure out how
Speaker 1: we do that, let's welcome Jason Crabtree. He's co founder
Speaker 1: and CEO of Complex that's spelled with a Q, and
Speaker 1: he's also a former Special Advisor to Commanding General of
Speaker 1: the U. S. Army Cyber Command. Jason, thanks so much
Speaker 1: for joining us here. UM, give us a sense of
Speaker 1: how big and how concerned should we be about ransom
Speaker 1: and I guess just cybersecurity in general. How do you
Speaker 1: guys think about it? Sure? Well, ransomware is just frankly
Speaker 1: continuing to gain steam as we see organizations that are
Speaker 1: far too vulnerable being taken advantage of by really sophisticated
Speaker 1: and sizable transnational criminal organizations that have created a really
Speaker 1: great affiliate network model. I have an awesome business model,
Speaker 1: and they've been able to reap in tens of millions
Speaker 1: of dollars of fees this year alone by exploiting and
Speaker 1: then actually ransoming and effectively holding hostage a bunch of
Speaker 1: companies and governments all over the world. Jason, we should
Speaker 1: note that you are the real deal. As a graduate
Speaker 1: of West Point, your licensed professional engineer looking at the
Speaker 1: power grid, the broader energy system. Um, so you're the
Speaker 1: perfect person to asked sort of big picture? Am I
Speaker 1: making out to be too big of a deal by
Speaker 1: saying that ransomware and cyber security is effectively the new
Speaker 1: way in which some of these states sponsored countries are
Speaker 1: waging war on us, and and how should our companies
Speaker 1: be forced to respond given that this seems to be
Speaker 1: the new frontier. Well, I think there's a couple of
Speaker 1: aspects in this, the first of which is that criminals
Speaker 1: go where the money is right, and they've realized that
Speaker 1: it's quite efficient and effective to go ahead and either
Speaker 1: take over companies like Cassea. Right, so, a US company
Speaker 1: based in Miami, a critical software provider, compromise their customers
Speaker 1: using vulnerabilities and their software just like the Microsoft software vulnerabilities,
Speaker 1: used that to take over their networks and then hold
Speaker 1: all their customers costas. So you saw trains in Sweden,
Speaker 1: pharmacies in Sweden, the largest grocer in Sweden, co Op,
Speaker 1: not able to operate for days as a result of
Speaker 1: a Miami based software and you know vulnerability here at home.
Speaker 1: So this is this is a great way to sit
Speaker 1: you know, anywhere in the world and get paid. I
Speaker 1: think the challenge for us is a society, is our
Speaker 1: companies in our country very digitally dependent. Risk is a
Speaker 1: consequence of dependence. So we've got to do two things.
Speaker 1: We have to increase costing consequence for criminal organizations and
Speaker 1: pursue them around the world. And we also have to
Speaker 1: acknowledge that we are not defending our networks adequately and
Speaker 1: that many of these breaches, including things like GPS and
Speaker 1: colonial we're sort of predictable based on how sort of
Speaker 1: shoddy a lot of the external security posture and other
Speaker 1: capabilities were. And that's not victim blaming. It's the reality
Speaker 1: of under investing in security and having very vulnerable assets
Speaker 1: connected to the Internet. You look like a target. You're
Speaker 1: going to be one. Jason, I'm not sure if this
Speaker 1: is coincidence or not, but the rise of cryptocurrency seems
Speaker 1: to have mirrored somewhat the rise of these ransomware attacks.
Speaker 1: Talk to us about the role that cryptocurrencies play play
Speaker 1: in this whole situation. Well, certainly, people like Putin have
Speaker 1: strongly encouraged alternatives to international monetary transfer right, so things
Speaker 1: like swift that are actually much more both monitored and secure,
Speaker 1: so you know, non fungible tokens. Cryptocurrencies are certainly part
Speaker 1: of the story, but fundamentally, ransomware has been going on
Speaker 1: before crypto is mainstream in this context, and frankly they'll
Speaker 1: continue afterwards. But it's it's a contributing factor, but it's
Speaker 1: not the cause of the rampant vulnerability or the tremendous
Speaker 1: leverage you can get over a company when you shut
Speaker 1: down its operations. It's not just companies. Remember the city
Speaker 1: of Atlanta, right, tens of millions of dollars in recovery
Speaker 1: costs school districts in Baltimore. I mean, this is something
Speaker 1: that's affecting you know, state discor organizations, just like it's
Speaker 1: affecting big businesses. I am curious what types of companies
Speaker 1: are coming to you and saying that they are in
Speaker 1: most need for your services. Yes, so, our business services
Speaker 1: some of the most prestigious banks technology companies around the world. Um,
Speaker 1: so we work you know, in dozens of countries with
Speaker 1: very very large organizations where we you know, many of
Speaker 1: our clients have tens of thousands of employees or hundreds
Speaker 1: of thousands in some cases, so we really help them
Speaker 1: make sure that the catastrophic breach risks aren't there. We're
Speaker 1: a bit of an air bag in the car crash, right,
Speaker 1: we help you walk away. Um. I think one of
Speaker 1: the challenges for people, and you're seeing this actually this
Speaker 1: week with another deadly vulnerability and Microsoft software related to
Speaker 1: print spoolers, which is very geeky, but fundamentally it allows
Speaker 1: people to take over the identity infrastructure. And we saw
Speaker 1: assists of the Cyber Security Infrastructure Security Agency here in
Speaker 1: the United States just issue a really urgent alert yesterday
Speaker 1: because people were taking over identity infrastructure. Remember that's exactly
Speaker 1: what Russia did in the midst of the solar wind
Speaker 1: pack to take over major important organizations like Department of Justice,
Speaker 1: Department of Treasury. Uh Jason just about thirty seconds. How
Speaker 1: much of this ransomware and cyber issues cyber crime is
Speaker 1: state sponsored? Do you think versus just some guy in
Speaker 1: a garage. Well, so, the reality of these are sophisticated
Speaker 1: criminal organizations. And remember most of them do operate out
Speaker 1: of places that are strongly influenced or controlled by Putin
Speaker 1: Iran North Korea, so it's certainly been actively tolerated. Are
Speaker 1: known about and I think been quite useful to undermine
Speaker 1: the last. But we've seen less evidence or no evidence
Speaker 1: in some cases of overt sponsorship. But remember these Folkstentis
Speaker 1: permit tremendously. Yeah. Absolutely, Jason Crabtree, thank you so much
Speaker 1: for joining us. Really fascinating discussion. Jason Crabtree. He's a
Speaker 1: co founder and CEO of Complex, former special advisor to
Speaker 1: the Commanding General the U. S. Army Cyber Command, so
Speaker 1: he certainly knows what he's talking about. And again, as
Speaker 1: um uh, you know we were talking about it seems
Speaker 1: like this is an issue cybersecurity broadly defined as teller's
Speaker 1: mentioning is a big issue. It's it seems like it's
Speaker 1: in its early innings and it's something that corporate America
Speaker 1: and individuals need to pay more attention to. Well, the
Speaker 1: more coming up this is Bloomberg Taylor. You know, it's
Speaker 1: a busy bank earnings day when Shannali Bossik, Wall Street
Speaker 1: reporter for Bloomberg News literally is running from the TV
Speaker 1: studio to our radio studio because she has so many
Speaker 1: different obligations to do. She is running around for us
Speaker 1: covering not only the Gray m Live t Live blog
Speaker 1: that we have on the Bloomberg terminal. But joining us
Speaker 1: for radio and TV. What a slew of earnings And
Speaker 1: you know this from your days, Paul of Uh, just
Speaker 1: what crazy days these are listening to both the analysts
Speaker 1: and the media call and of course the earnings report,
Speaker 1: and I just think it's so silly for these big,
Speaker 1: big banks all to report on one day. It's just ridiculous.
Speaker 1: Spread it out a little bit. But anyway, Shanali, thanks
Speaker 1: so much for joining us here again we get Bank
Speaker 1: of America, City Group, Wells Fargo. When I think of
Speaker 1: these institutions as opposed to the Goldman's and JP Morgan's
Speaker 1: and Morgan Stanley's, I think of corporate banking, consumer banking,
Speaker 1: making loans net interest margin, and I think one of
Speaker 1: the takeaways was the loan growth really isn't there? Is it?
Speaker 1: You know, it's so funny because on these conference calls
Speaker 1: this morning, Bank of America with journalists and analysts, same
Speaker 1: with City Group, they're trying to convince people that this
Speaker 1: loan growth will come back, that it will be there.
Speaker 1: But you can see from the investor reaction that they'll
Speaker 1: believe it when they'll see it right, that they're just
Speaker 1: not buying this, Yet how much of this can be
Speaker 1: one offs? I in everyone was really working on sort
Speaker 1: of wrapping up our balance sheets right, making sure that
Speaker 1: if you were laid off or what you do with
Speaker 1: the stimulus checks was paying off some of your dead
Speaker 1: is their appetite for people to want to take on
Speaker 1: new loan. It's self fascinating because from this you're seeing
Speaker 1: wealthier individuals expand their loan on average, with the biggest
Speaker 1: banks Bank of America, JP, Morgan Goldman sacts sometimes at
Speaker 1: very fast paces. Will be very interesting, by the way,
Speaker 1: to see what that looks like in Morgan Stanley Tomorrow,
Speaker 1: which really excels in this space. But the average consumer
Speaker 1: is not borrowing. So you've got to wonder why there's
Speaker 1: such a divergence for the wealthiest of America to lever
Speaker 1: up the way they are, and then where are they
Speaker 1: deploying those funds right investments and whatnot. Another interesting thing
Speaker 1: that I can't really get over because it matters so
Speaker 1: much to markets is Bank of America said that they
Speaker 1: are sitting on so much dry powder that they are
Speaker 1: deploying this into securities, So don't worry so much about
Speaker 1: the loans. They're they're putting it to make markets. They
Speaker 1: all so said, we're not a hedge fund, so you
Speaker 1: know clearly there is a limit to how much risk
Speaker 1: they'll take on. I've been watching this over at JP
Speaker 1: Morgan as well. Their value at risk has dropped significantly. However, again,
Speaker 1: this dry powder is so interesting at a time where
Speaker 1: global banking is in an upheaval. It's in a total
Speaker 1: shake up, and the American banks and Frankly City in
Speaker 1: Bank of America, which have less share than their bigger
Speaker 1: three peers, has room to take some of that share
Speaker 1: and markets. How about the credit quality discussion. What are
Speaker 1: the banks saying as to the quality of their loan portfolio.
Speaker 1: I mean, again, we've come through this once in a
Speaker 1: lifetime pandemic and economic disruption, but it seems like, you know,
Speaker 1: individuals and corporations are kind of doing okay. I can't
Speaker 1: get over what it must be like to be a
Speaker 1: banker right now and not get the love from investors.
Speaker 1: When the consumer is in such apparently decent shape. They're
Speaker 1: paying down their balances, which is why loans are pretty
Speaker 1: flat everywhere. I gotta say, the one place that I'm
Speaker 1: concerned about is Holmes, Uh, that is where they're seeing
Speaker 1: lower balances at a lot of these banks, and that
Speaker 1: wasn't the case as we know before. So what are
Speaker 1: people actually lending borrowing for it? That's not clear to me.
Speaker 1: They're spending more, they're just not borrowing more. So much
Speaker 1: of this can be I think about Walls Fargo. What
Speaker 1: do you think of home loans, auto loans, you name it.
Speaker 1: We're gonna speaking with the Walls Fargo CFO Mike Santo
Speaker 1: Massimo just after the closing bell. If you had one
Speaker 1: question you'd want to ask him. What would it be? Oh? Boy?
Speaker 1: How much is the asset cap by the numbers and
Speaker 1: impacting them? Still? Right? How much of it is? What
Speaker 1: do you define with the asset cap? Is? It is
Speaker 1: basically the Federal Reserve saying that you can't get your
Speaker 1: assets over a certain amount, you cannot be lowing you
Speaker 1: in the time out box. Yeah, I mean it is never.
Speaker 1: I mean that is really an unprecedented type of punishment
Speaker 1: that's spooked all of Wall Street when it happened. Right,
Speaker 1: banks are afraid to behave badly? Are they the only
Speaker 1: big bank that has a asset cap? Correct? And remember
Speaker 1: this is still relatively early days for Charlie Sharff, the
Speaker 1: new CEO, who's also treating seeking to keep it lit
Speaker 1: on costs. The bank is becoming more efficient. They and
Speaker 1: Bank of America this morning said headcount has dropped by
Speaker 1: thousands in the last quarter alone. Is that intentional? I
Speaker 1: think there are two things. I think part of it
Speaker 1: is intentional. Bank of America talked about that shifted digital
Speaker 1: in that retail business. But also they're paying people more,
Speaker 1: so wages are going up, so head count must go
Speaker 1: down if you're controlling costs. So I'm just looking at
Speaker 1: the stock prices, you know, wells Fargo up, I guess
Speaker 1: forty year to date. Looking at some of those other
Speaker 1: kind of you know, uh, commercial banks out there, that's
Speaker 1: a pretty good performance. So it looks like the streets
Speaker 1: giving this new management team or just I guess, and
Speaker 1: this turnaround plans some credit incidents, and you know, similarly
Speaker 1: at City Group, this is Jane Fraser's first full quarter
Speaker 1: s CEO. We saw the stock up in the morning
Speaker 1: and now it's moderated a bit like it's ending fly
Speaker 1: their cheaper than on the other banks. You've got to
Speaker 1: wonder whether Wall Street will give her the same kind
Speaker 1: of grace period that they've given Charlie Sharfs and she,
Speaker 1: to her credit, have been one of the few that
Speaker 1: have embraced the more flexible lifestyle. I'm gonna be that
Speaker 1: Millennia brings that up in her being a woman, really
Speaker 1: understanding the need, particularly for women. Though everyone across the
Speaker 1: board feeling this, the need for flexibility, where are we
Speaker 1: and who is doing what? It's so funny because you
Speaker 1: and I talked about this earlier this week that one
Speaker 1: of Goldman's top investment bankers they had had more than
Speaker 1: of the market share of M and A, and so
Speaker 1: did JP Morgan. Goldman's told me that, you know, part
Speaker 1: of this is coming back to work and being there
Speaker 1: for clients. That absolutely helps market share. But for City Group,
Speaker 1: what their plan here is to retain an attract most
Speaker 1: importantly talent, and Paul, you and I have talked about
Speaker 1: that so much. This game of musical chairs on Wall
Speaker 1: Street must be one of the hottest we've seen in years.
Speaker 1: One bank president told me that every day, right we've
Speaker 1: talked about this, every day he's coming in and a
Speaker 1: new banker is either threatening to leave or asking for
Speaker 1: new terms of their employment there. And it is just
Speaker 1: a hot market for jobs. What's it's it's interesting. You
Speaker 1: know we're going to hear from the European banks, I
Speaker 1: guess later. Um is the theme that US banks aren't
Speaker 1: fact taking global market share, certainly because you see these
Speaker 1: banks eyeing that weakness over there in Europe because they've
Speaker 1: not only have had they had those extra regulatory constraints
Speaker 1: since the last financial crisis, they have also had even
Speaker 1: more so of a regulatory constraints since this COVID crisis.
Speaker 1: So you know, you can bet your dollar that Goldman
Speaker 1: and JP Morgan are ready to take that share in
Speaker 1: Europe and in the US when it comes to those clients. Interesting,
Speaker 1: I'll be interested to hear from the Deutsche banks of
Speaker 1: the world and the Barclays and things like that to
Speaker 1: see how they're performing visa VI. The U S peers say, Bassk,
Speaker 1: thank you so much, Thank you so for rushing over
Speaker 1: from TV to radio. We appreciate your efforts. Shinelli Bassak,
Speaker 1: Wall Street reporter for Bloomberg News, joining us here in
Speaker 1: our beautiful Bloomberg Interactive broker's studio. So again, Uh Taylor
Speaker 1: got Morgan Stanley Uh tomorrow, Uh, pretty high bar for
Speaker 1: some of the some of the performances there. Yeah, at
Speaker 1: least when it comes to M and A and invest
Speaker 1: in banking. Reminder, we've brand Moyniham at three thirty, followed
Speaker 1: by wals Bargo, CFO just after the closing belt. Awesome.
Speaker 1: So you guys have got the lineup, got it all
Speaker 1: covered from the bank's perspective, and uh, you know, we
Speaker 1: will certainly cover the remainder of these bank earnings as
Speaker 1: we continue this earning season. This is Bloomberg. Thanks for
Speaker 1: listening to the Bloomberg Markets podcast. You can subscribe and
Speaker 1: listen to interviews with Apple Podcasts or whatever podcast platform
Speaker 1: you prefer. I'm Matt Miller. I'm on Twitter at Matt
Speaker 1: Miller three. Got on Ball Sweeney. I'm on Twitter at
Speaker 1: pt Sweeney. Before the podcast. You can always catch us
Speaker 1: worldwide at Bloomberg Radio.