1
00:00:09,880 --> 00:00:13,800
Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene Jay Ley.

2
00:00:13,960 --> 00:00:17,560
Speaker 1: We bring you insight from the best in economics, finance, investment,

3
00:00:18,000 --> 00:00:23,520
Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,

4
00:00:23,600 --> 00:00:26,920
Speaker 1: Bloomberg dot Com, and of course on the Bloomberg And

5
00:00:26,960 --> 00:00:28,840
Speaker 1: we've got a style on this market. What a rally

6
00:00:28,880 --> 00:00:31,160
Speaker 1: we've seen off the bottom over the last counple of months.

7
00:00:31,160 --> 00:00:34,600
Speaker 1: Make Swallick element Sacks joins us now, Mike Friday, What

8
00:00:34,680 --> 00:00:37,680
Speaker 1: did Friday change for you as you look ahead to

9
00:00:37,800 --> 00:00:41,440
Speaker 1: the weeks and months ahead through I think that Friday

10
00:00:41,640 --> 00:00:44,960
Speaker 1: was just an example of a continuation of the impact

11
00:00:45,080 --> 00:00:48,720
Speaker 1: of government policy, so big impact on the TESCO, big

12
00:00:48,720 --> 00:00:53,479
Speaker 1: impact of monetary policy, that the rally can continue because

13
00:00:53,479 --> 00:00:57,240
Speaker 1: the level of support from the government has been so significant,

14
00:00:57,600 --> 00:01:00,800
Speaker 1: creating an enormous amount of cash that is really looking

15
00:01:00,840 --> 00:01:03,319
Speaker 1: for a reason to get invested. I think that when

16
00:01:03,320 --> 00:01:05,640
Speaker 1: you look at the employment report and the discussion you've

17
00:01:05,680 --> 00:01:08,920
Speaker 1: had earlier today about the questions in the number, we're

18
00:01:08,959 --> 00:01:12,760
Speaker 1: a long ways away from getting American workers back to

19
00:01:12,880 --> 00:01:15,880
Speaker 1: work in a very meaningful way. So the job situation

20
00:01:15,959 --> 00:01:17,319
Speaker 1: is going to be one that is going to continue

21
00:01:17,360 --> 00:01:19,880
Speaker 1: to be an issue for the next six months to

22
00:01:19,920 --> 00:01:23,000
Speaker 1: a year, and so I wouldn't necessarily call victory with

23
00:01:23,080 --> 00:01:24,800
Speaker 1: regard to the job picture. I think we have a

24
00:01:24,840 --> 00:01:26,759
Speaker 1: long long way to go, and I think what you're

25
00:01:26,800 --> 00:01:29,800
Speaker 1: seeing right now in markets is the more the impact

26
00:01:30,000 --> 00:01:36,080
Speaker 1: of um UH significant significant policy liquidity, more so than

27
00:01:36,520 --> 00:01:40,000
Speaker 1: confidence in in in reopening. The policy effort is clearly

28
00:01:40,000 --> 00:01:43,039
Speaker 1: were the federal reserved objective was to divorce financial conditions

29
00:01:43,040 --> 00:01:44,800
Speaker 1: from the real economy. We've done that. I think a

30
00:01:44,800 --> 00:01:46,640
Speaker 1: lot of people looking at the date to Mike and

31
00:01:46,720 --> 00:01:50,480
Speaker 1: trying to work out whether the economic conditions catches up

32
00:01:50,520 --> 00:01:52,600
Speaker 1: with where financial conditions has taken us. Is that a

33
00:01:52,680 --> 00:01:54,440
Speaker 1: challenge for the next couple of months or a challenge

34
00:01:54,480 --> 00:01:58,240
Speaker 1: for the turn of the year. UH. That is the

35
00:01:58,360 --> 00:02:00,920
Speaker 1: number one, two, and three questions regard to how you

36
00:02:00,920 --> 00:02:04,040
Speaker 1: think about financial markets here and UM at Goman Sacks.

37
00:02:04,120 --> 00:02:06,400
Speaker 1: But we did last week we have a daily forum

38
00:02:06,400 --> 00:02:08,840
Speaker 1: where we get together all different investors. We brought in

39
00:02:08,880 --> 00:02:12,200
Speaker 1: our multi asset people are fundamental equity investors as well

40
00:02:12,200 --> 00:02:14,440
Speaker 1: as fixed income and had kind of a cage match

41
00:02:14,639 --> 00:02:17,760
Speaker 1: around this topic. And the conclusion that we came to

42
00:02:17,960 --> 00:02:20,840
Speaker 1: is that Number one the financial conditions that have been

43
00:02:20,880 --> 00:02:24,000
Speaker 1: supported by the FED and by uh by governments through

44
00:02:24,040 --> 00:02:26,920
Speaker 1: fiscal policy will dominate in the near term, but in

45
00:02:26,919 --> 00:02:29,960
Speaker 1: the long term it's going to be earnings and jobs

46
00:02:30,000 --> 00:02:33,160
Speaker 1: that are going to matter. And I think that it's

47
00:02:33,240 --> 00:02:36,200
Speaker 1: too early to call victory with regard to where earnings

48
00:02:36,200 --> 00:02:38,160
Speaker 1: are gonna end up. I think a lot of investors

49
00:02:38,200 --> 00:02:40,200
Speaker 1: are saying that, you know, we're going to jump back

50
00:02:40,639 --> 00:02:45,000
Speaker 1: in one to the earnings that we saw in We

51
00:02:45,080 --> 00:02:47,280
Speaker 1: have a long, long way to go, and I think

52
00:02:47,280 --> 00:02:49,720
Speaker 1: that there's a lot more repair that has to happen

53
00:02:49,960 --> 00:02:53,240
Speaker 1: in the economy that we really don't know how companies

54
00:02:53,240 --> 00:02:56,280
Speaker 1: are going to react to a different state of of

55
00:02:56,280 --> 00:03:00,280
Speaker 1: of of a global economy when we have a UH issue,

56
00:03:00,680 --> 00:03:02,560
Speaker 1: a medical issue that's going to be so significant to

57
00:03:02,639 --> 00:03:04,880
Speaker 1: change the way that we do business. So our view

58
00:03:04,960 --> 00:03:07,560
Speaker 1: right now is that for the near term, policy wins

59
00:03:07,840 --> 00:03:10,480
Speaker 1: stay long risk assets, but over the longer term it's

60
00:03:10,480 --> 00:03:13,240
Speaker 1: going to be all about earnings and jobs. Michael Swell,

61
00:03:13,320 --> 00:03:15,160
Speaker 1: I want to go to your work with Goldman Sachs

62
00:03:15,160 --> 00:03:18,519
Speaker 1: and before that with Freeman fbr Is well with your

63
00:03:18,600 --> 00:03:23,360
Speaker 1: expertise and mortgage backed securities. A lot of rents aren't

64
00:03:23,400 --> 00:03:26,800
Speaker 1: being paid. A lot of commercial real estate of every

65
00:03:26,840 --> 00:03:30,079
Speaker 1: gradation isn't going to work out, And there's all the

66
00:03:30,120 --> 00:03:33,720
Speaker 1: loans and the fancy derivative instruments off the back of that.

67
00:03:34,200 --> 00:03:38,120
Speaker 1: Are you troubled at all by a pending real estate

68
00:03:38,200 --> 00:03:43,200
Speaker 1: crisis in the nation because rents are not being paid? Um?

69
00:03:43,720 --> 00:03:47,400
Speaker 1: I would say that the residential picture is going to

70
00:03:47,440 --> 00:03:51,800
Speaker 1: be correlated to the job picture. So if we expect

71
00:03:51,800 --> 00:03:54,040
Speaker 1: to continue to get America back to work and we

72
00:03:54,040 --> 00:03:58,640
Speaker 1: can drive the true unemployment rate below ten, we're likely

73
00:03:58,720 --> 00:04:01,040
Speaker 1: not to have a housing more get issue, whether on

74
00:04:01,160 --> 00:04:04,200
Speaker 1: the price issue or whether on the rent issue. Uh.

75
00:04:04,440 --> 00:04:07,080
Speaker 1: And So I think in terms of housing, we we

76
00:04:07,160 --> 00:04:10,040
Speaker 1: don't have oversupply like we had to oversupply in two

77
00:04:10,080 --> 00:04:13,320
Speaker 1: thousand seven, and we don't have um too much leverage

78
00:04:13,320 --> 00:04:15,880
Speaker 1: in the system. We've kind of fixed the very very

79
00:04:15,960 --> 00:04:19,760
Speaker 1: high LTV loan situation, the interest only loan situation. We

80
00:04:19,760 --> 00:04:22,320
Speaker 1: we don't have borrowers that our leverages they were before.

81
00:04:22,360 --> 00:04:24,320
Speaker 1: We're really going to be dependent upon jobs. So I

82
00:04:24,360 --> 00:04:26,880
Speaker 1: think if we continue to see jobs improve, we don't

83
00:04:26,880 --> 00:04:28,520
Speaker 1: have a housing market issue. I do think in the

84
00:04:28,520 --> 00:04:32,680
Speaker 1: commercial real estate market there's a lot of adjustment that

85
00:04:32,720 --> 00:04:35,800
Speaker 1: has to occur. There's gonna be a decent amount of

86
00:04:36,040 --> 00:04:39,280
Speaker 1: restructuring of loans, there's gonna be some defaults, obviously on

87
00:04:39,320 --> 00:04:41,800
Speaker 1: the retail side. But if you look at the commercial

88
00:04:42,200 --> 00:04:44,760
Speaker 1: real estate market, there's a big debate there. If we

89
00:04:44,800 --> 00:04:46,400
Speaker 1: think that we're going to see a lot of companies

90
00:04:46,440 --> 00:04:50,679
Speaker 1: move out of UH, move out of major hubs, major cities,

91
00:04:50,720 --> 00:04:54,080
Speaker 1: and and and and diversify their their exposure, having a

92
00:04:54,120 --> 00:04:56,719
Speaker 1: negative impact on commercial real estate, the other side of

93
00:04:56,720 --> 00:04:59,200
Speaker 1: that is, in a socially distant world, you're finding the

94
00:04:59,200 --> 00:05:02,880
Speaker 1: companies are actually looking for more square footage to be

95
00:05:02,920 --> 00:05:05,440
Speaker 1: able to bring workers back in a a in a

96
00:05:05,800 --> 00:05:08,840
Speaker 1: safe way. So we actually think that the commercial real

97
00:05:08,960 --> 00:05:12,159
Speaker 1: estate market is one that has has still has a

98
00:05:12,160 --> 00:05:15,040
Speaker 1: lot of opportunity. If we see reopening of the economy,

99
00:05:15,080 --> 00:05:17,320
Speaker 1: like the equity market is telling you, you ought to

100
00:05:17,360 --> 00:05:20,200
Speaker 1: see stabilization in the commercial real estate market. And if

101
00:05:20,200 --> 00:05:21,640
Speaker 1: you look in the world that we live in, not

102
00:05:21,760 --> 00:05:24,240
Speaker 1: in the direct commercial real estate market, but in the

103
00:05:24,240 --> 00:05:28,039
Speaker 1: commercial real estate securities market, we have not seen a

104
00:05:28,120 --> 00:05:31,520
Speaker 1: significant recovery in pricing there. If we see the economy

105
00:05:31,520 --> 00:05:33,520
Speaker 1: get back like the equity market is telling you, we

106
00:05:33,560 --> 00:05:35,479
Speaker 1: think there's gonna be a lot of opportunity in some

107
00:05:35,600 --> 00:05:38,960
Speaker 1: of the mezzanine securities and commercial mortgage backed security to

108
00:05:39,000 --> 00:05:42,000
Speaker 1: be able to our an equity like returns. Mike, I'm

109
00:05:42,040 --> 00:05:44,000
Speaker 1: just wondering. You were saying, is it time to stay

110
00:05:44,160 --> 00:05:46,920
Speaker 1: risk on? And certainly a lot of people have been

111
00:05:47,040 --> 00:05:48,960
Speaker 1: risk on. If you look at HILED bonds in the US,

112
00:05:49,000 --> 00:05:52,839
Speaker 1: they've gained twenty two percent since late March, and we've

113
00:05:52,839 --> 00:05:55,719
Speaker 1: seen three and a half billion dollars flow into the

114
00:05:55,720 --> 00:05:58,960
Speaker 1: biggest high old bond et F in the past week alone.

115
00:05:59,360 --> 00:06:01,799
Speaker 1: Don't fight the FED, but you can front run it.

116
00:06:01,880 --> 00:06:04,440
Speaker 1: Has the FED already been front run fully? Or are

117
00:06:04,480 --> 00:06:08,040
Speaker 1: there further opportunities here? I don't think fully. I still

118
00:06:08,120 --> 00:06:11,360
Speaker 1: think there's going to be a lot of demand for

119
00:06:11,839 --> 00:06:15,200
Speaker 1: US credit related assets. Keep in mind, it's not just

120
00:06:15,279 --> 00:06:18,520
Speaker 1: front running the FED, but we're in a global interest

121
00:06:18,640 --> 00:06:21,320
Speaker 1: rate environment where there are no interest rates. We're basically

122
00:06:21,440 --> 00:06:24,640
Speaker 1: zero around the globe, and the US credit market still

123
00:06:24,680 --> 00:06:28,120
Speaker 1: is a market that offers investors yield. Demand for yield

124
00:06:28,240 --> 00:06:31,000
Speaker 1: is very, very significant, and I think people will continue

125
00:06:31,000 --> 00:06:33,880
Speaker 1: to view not only the US treasury market, but also

126
00:06:33,960 --> 00:06:37,800
Speaker 1: the US corporate credit market as in general safe haven,

127
00:06:38,040 --> 00:06:40,640
Speaker 1: so I do think there's more room to run. However,

128
00:06:41,400 --> 00:06:44,920
Speaker 1: more broadly around the question around risk assets and where

129
00:06:44,920 --> 00:06:47,359
Speaker 1: we go from here. In the short term, we do

130
00:06:47,480 --> 00:06:50,640
Speaker 1: think that policy zero rates are going to driver risk

131
00:06:50,640 --> 00:06:53,640
Speaker 1: assets higher from here, but that's not gonna last forever.

132
00:06:53,920 --> 00:06:55,719
Speaker 1: In the end, it's going to be about earnings. And

133
00:06:55,760 --> 00:06:59,080
Speaker 1: so in our discussion last week, our cage match around

134
00:06:59,120 --> 00:07:01,040
Speaker 1: where we go from here and have risk guests that's

135
00:07:01,040 --> 00:07:03,720
Speaker 1: gone too far, we definitely came to the conclusion that

136
00:07:04,080 --> 00:07:07,039
Speaker 1: this is going to be a winners and losers market,

137
00:07:07,279 --> 00:07:09,440
Speaker 1: both on the equity side and the credit side, and

138
00:07:09,480 --> 00:07:12,840
Speaker 1: it's time to think a little bit about moving away

139
00:07:12,840 --> 00:07:15,920
Speaker 1: from just kind of being long beta and really focusing

140
00:07:15,960 --> 00:07:19,120
Speaker 1: on the types of companies that will be the survivors

141
00:07:19,120 --> 00:07:20,920
Speaker 1: and will gain market share. And so we do think

142
00:07:20,960 --> 00:07:23,440
Speaker 1: active management will be a very important part of future

143
00:07:23,480 --> 00:07:25,800
Speaker 1: returns versus just the beta they might. We just want

144
00:07:25,800 --> 00:07:28,080
Speaker 1: to know who wins a cage fight, a Golment sacks,

145
00:07:28,240 --> 00:07:30,560
Speaker 1: How does that work out out of the awakened when

146
00:07:30,560 --> 00:07:34,000
Speaker 1: that plays out. I'm six ft five pounds, so I'm

147
00:07:34,000 --> 00:07:36,120
Speaker 1: the biggest person. Who I I was? I was win?

148
00:07:36,800 --> 00:07:42,520
Speaker 1: Um who win the the the answer is short term risk.

149
00:07:42,600 --> 00:07:46,160
Speaker 1: On long term, long term, it's going to really rely

150
00:07:46,240 --> 00:07:48,240
Speaker 1: upon earnings, and that the data that we have so

151
00:07:48,320 --> 00:07:53,920
Speaker 1: far is irrelevant to the longer term macro picture. Stay tuned.

152
00:07:54,200 --> 00:07:56,600
Speaker 1: Follow what's going on in China, Follow what's going on

153
00:07:56,640 --> 00:07:59,280
Speaker 1: in South Korea in terms of reopening, and what's going

154
00:07:59,280 --> 00:08:01,760
Speaker 1: on with consuming or what's going on with corporate earnings

155
00:08:01,920 --> 00:08:04,400
Speaker 1: in those countries, because those will be leading indicators for

156
00:08:04,480 --> 00:08:07,240
Speaker 1: what goes on here. Mike Swell, fantastic work has always

157
00:08:07,280 --> 00:08:09,680
Speaker 1: always appreciate your time. So Mike Swell, that of Gallman

158
00:08:09,720 --> 00:08:15,920
Speaker 1: Sacks joining US now and RITA cent of Energy aspects

159
00:08:16,280 --> 00:08:22,160
Speaker 1: and ridascent is outstanding at the dynamics of supply and demand.

160
00:08:22,240 --> 00:08:25,880
Speaker 1: Em Rita, I want to dovetail your wonderful narrow work

161
00:08:26,360 --> 00:08:30,679
Speaker 1: with those that take a more geopolitical strategic work because

162
00:08:30,720 --> 00:08:34,680
Speaker 1: it folds in. If OPEC plus members and let's go

163
00:08:34,760 --> 00:08:39,240
Speaker 1: with OPEC, if they cheat, how does that affect your

164
00:08:39,280 --> 00:08:43,280
Speaker 1: world of the minutia of supply and demand? Him a

165
00:08:43,360 --> 00:08:46,360
Speaker 1: morning tom Um. I think in terms of the question

166
00:08:46,400 --> 00:08:50,480
Speaker 1: you asked about compliance, Um, if the cheat, which by

167
00:08:50,520 --> 00:08:52,680
Speaker 1: the way, we are ressuming in our balances we just

168
00:08:52,960 --> 00:08:57,400
Speaker 1: cannot see how Iraq, Nigeria, Kazakhstan, given their fiscal broader

169
00:08:57,440 --> 00:09:01,319
Speaker 1: fiscal issues, they just is so cash up will comply.

170
00:09:01,960 --> 00:09:05,360
Speaker 1: It just means that the rebalancing takes longer. It is

171
00:09:05,480 --> 00:09:09,280
Speaker 1: simply that supplies are now falling faster than demand. We've

172
00:09:09,320 --> 00:09:11,120
Speaker 1: been saying this right from the start, that the stock

173
00:09:11,200 --> 00:09:14,720
Speaker 1: draws will start from early June, and they have begun. Um.

174
00:09:15,040 --> 00:09:18,040
Speaker 1: But the more these guys cheat, it just means that

175
00:09:18,400 --> 00:09:21,520
Speaker 1: the overall supply number the reduction from OPEC plus will

176
00:09:21,520 --> 00:09:24,719
Speaker 1: be less than what the headline numbers suggests. MENA. I'm

177
00:09:24,760 --> 00:09:28,240
Speaker 1: struggling to understand the supply demand dynamic right now. A

178
00:09:28,240 --> 00:09:31,079
Speaker 1: lot of people saying that the promised cuts of OPEC

179
00:09:31,160 --> 00:09:34,400
Speaker 1: plus and the potential enforcement of them, which has been

180
00:09:34,440 --> 00:09:37,920
Speaker 1: a challenge for years, that that has been the main

181
00:09:38,080 --> 00:09:40,439
Speaker 1: driver of some of the recent price gains, and other

182
00:09:40,480 --> 00:09:43,880
Speaker 1: people raise the concern that the shale patch is slowly

183
00:09:43,920 --> 00:09:46,720
Speaker 1: starting to bring rigs back on. How much is this

184
00:09:46,840 --> 00:09:49,320
Speaker 1: the story and how much is demand still the main

185
00:09:49,400 --> 00:09:52,480
Speaker 1: driver here? How quickly the global economy can get back

186
00:09:52,559 --> 00:09:55,760
Speaker 1: up to speed. I think you're exactly right, um, I

187
00:09:55,800 --> 00:09:58,600
Speaker 1: think the global demand I at least in our view,

188
00:09:58,679 --> 00:10:01,880
Speaker 1: is still very much the key riper. We did fall

189
00:10:01,960 --> 00:10:04,320
Speaker 1: to record low levels in terms of demand. Now we

190
00:10:04,360 --> 00:10:07,719
Speaker 1: are recovering um and that just means that you do

191
00:10:07,840 --> 00:10:12,199
Speaker 1: need higher supplies now. I still stand by the problem

192
00:10:12,280 --> 00:10:14,560
Speaker 1: we have in the market in you oil, that is,

193
00:10:14,679 --> 00:10:17,640
Speaker 1: the data is opaque, The data is very lagged. We

194
00:10:17,760 --> 00:10:20,200
Speaker 1: still don't know just how much we fell by. So

195
00:10:20,320 --> 00:10:22,040
Speaker 1: if we don't know how much we fell by, but

196
00:10:22,120 --> 00:10:25,080
Speaker 1: the markets assumed we would hit tank tops. I remember

197
00:10:25,080 --> 00:10:27,560
Speaker 1: talking to you guys about that, but we never did.

198
00:10:27,640 --> 00:10:31,080
Speaker 1: Because it may be demandedn't fall by as much as expected,

199
00:10:31,120 --> 00:10:33,959
Speaker 1: even though it was very very weak, and because of

200
00:10:34,040 --> 00:10:38,760
Speaker 1: negative prices, supplies fell tremendously, and that's what caught us

201
00:10:38,800 --> 00:10:42,000
Speaker 1: to overshoot to the downside. In some respect, we have

202
00:10:42,160 --> 00:10:44,840
Speaker 1: overshot to the upside right now, but we do need

203
00:10:44,920 --> 00:10:47,640
Speaker 1: that some of that supply back because now refineries are

204
00:10:47,679 --> 00:10:50,640
Speaker 1: bringing back production and demand is rising. I still think

205
00:10:50,640 --> 00:10:53,679
Speaker 1: we've gone a bit too far because the demand is fragile.

206
00:10:53,880 --> 00:10:56,480
Speaker 1: Supplies from the US are going to start to come back,

207
00:10:56,840 --> 00:10:59,080
Speaker 1: so you know, it's not like a slamdown that of

208
00:10:59,120 --> 00:11:01,440
Speaker 1: course prices should be from here. I'm rated do you

209
00:11:01,480 --> 00:11:04,000
Speaker 1: find the supply in the United States is more elastic

210
00:11:04,040 --> 00:11:07,240
Speaker 1: when prices roll over aggressively than when they rally. Yes,

211
00:11:07,840 --> 00:11:10,200
Speaker 1: I think that the rate of change is absolutely the

212
00:11:10,200 --> 00:11:12,199
Speaker 1: critical thing. But you know the main thing I will

213
00:11:12,240 --> 00:11:14,760
Speaker 1: say for right now, especially because you ask about the

214
00:11:14,840 --> 00:11:18,280
Speaker 1: US and in relation to gasoline demand, it's unemployment on

215
00:11:18,600 --> 00:11:22,400
Speaker 1: our all our economic models. That's the biggest driver, even

216
00:11:22,440 --> 00:11:24,320
Speaker 1: more so than prices. I just want to fit in

217
00:11:24,320 --> 00:11:27,319
Speaker 1: a final question as well. I'm rating New York City reopening.

218
00:11:27,360 --> 00:11:29,000
Speaker 1: I think we're all trying to get our hands around

219
00:11:29,480 --> 00:11:33,040
Speaker 1: how quickly demand recovers. This is a slow, slow process

220
00:11:33,080 --> 00:11:35,720
Speaker 1: for New York City, but going global to the United

221
00:11:35,760 --> 00:11:38,280
Speaker 1: States beyond China, where we have at least the longer

222
00:11:38,360 --> 00:11:40,480
Speaker 1: data set, what's the recovery and demand look like at

223
00:11:40,520 --> 00:11:42,800
Speaker 1: the moment? I'm rated for these economies reopening. I mean,

224
00:11:43,440 --> 00:11:46,680
Speaker 1: if you believe that the demand felt by about million

225
00:11:46,679 --> 00:11:49,319
Speaker 1: barrels per day at the bottom, which was in April,

226
00:11:49,720 --> 00:11:53,880
Speaker 1: we have easily recovered about ten to twelve million barrels

227
00:11:53,880 --> 00:11:56,480
Speaker 1: per day in May alone, and right now we believe

228
00:11:56,559 --> 00:11:59,240
Speaker 1: global all demand is about ninety million barrels. But they

229
00:11:59,280 --> 00:12:03,120
Speaker 1: give ortake again China parts of China actually back above

230
00:12:03,240 --> 00:12:06,480
Speaker 1: last year's levels because the government has um it's basically

231
00:12:06,559 --> 00:12:09,600
Speaker 1: driving a big stimulus package. Europe isn't. US isn't. It's

232
00:12:09,600 --> 00:12:12,840
Speaker 1: going to take a long time, particularly in the aviation sector.

233
00:12:13,200 --> 00:12:15,840
Speaker 1: But yes, economies are opening up around the world because

234
00:12:16,200 --> 00:12:19,959
Speaker 1: lockdown simply isn't sustainable for growth in the medium. Tom,

235
00:12:20,160 --> 00:12:22,720
Speaker 1: I'm really sent ad energy aspects. I'm very fantastic to

236
00:12:22,760 --> 00:12:24,880
Speaker 1: catch up with you to get your thoughts. As always,

237
00:12:28,600 --> 00:12:30,240
Speaker 1: we're going to do a lot of this through this

238
00:12:30,320 --> 00:12:34,160
Speaker 1: week of Bloomberg surveillance, market analysis, and there's no one

239
00:12:34,240 --> 00:12:38,800
Speaker 1: better to coalesce all of these emotions, intentions, and Daniel

240
00:12:38,800 --> 00:12:43,560
Speaker 1: Morris sees with BNP Perry, but with market strategy as well. Daniel,

241
00:12:43,600 --> 00:12:47,520
Speaker 1: we have come so far, so fast in this equity market.

242
00:12:47,800 --> 00:12:50,839
Speaker 1: How do you restructure? How do you reframe on the

243
00:12:50,920 --> 00:12:53,640
Speaker 1: Monday morning in June. Well, I think it depends on

244
00:12:53,679 --> 00:12:55,880
Speaker 1: the attitude that you had before we got all the

245
00:12:55,920 --> 00:12:59,120
Speaker 1: news and we've been in the camp. I think, like

246
00:12:59,200 --> 00:13:02,000
Speaker 1: a lot of people, it had been too much, too soon,

247
00:13:02,080 --> 00:13:05,920
Speaker 1: and if we got more and sooner than we had before,

248
00:13:06,040 --> 00:13:09,559
Speaker 1: you've either capitulated or you've just become that much more

249
00:13:09,559 --> 00:13:12,200
Speaker 1: nervous and unfortunate. We're probably to stop much more nervous.

250
00:13:12,200 --> 00:13:14,480
Speaker 1: I mean, certainly the data was good, it's helpful, but

251
00:13:14,559 --> 00:13:16,320
Speaker 1: when you try to think about how things are going

252
00:13:16,400 --> 00:13:18,640
Speaker 1: to be three and six months from now, and in

253
00:13:18,679 --> 00:13:21,640
Speaker 1: particular when you look at earnings forecast for the end

254
00:13:21,640 --> 00:13:24,200
Speaker 1: of the year, there still seems to be a fairly

255
00:13:24,240 --> 00:13:28,240
Speaker 1: significant disconnect that if anything has gotten bigger. Okay, I

256
00:13:28,320 --> 00:13:30,600
Speaker 1: totally take that point in the chart of the earnings

257
00:13:30,600 --> 00:13:34,960
Speaker 1: disconnect is known by anybody listening and watching this program. Great,

258
00:13:35,360 --> 00:13:38,160
Speaker 1: Then what it comes down to a central bank support?

259
00:13:38,480 --> 00:13:41,440
Speaker 1: Did that go away over the weekend? Well, I guess

260
00:13:41,480 --> 00:13:44,920
Speaker 1: it comes down to how what's the mechanism for that

261
00:13:45,000 --> 00:13:47,040
Speaker 1: central bank support? I mean, if we think about low

262
00:13:47,120 --> 00:13:49,679
Speaker 1: interest rates, right, we've had that for for a very

263
00:13:49,720 --> 00:13:53,840
Speaker 1: long time. The increase in money supply, you know, certainly

264
00:13:53,880 --> 00:13:56,040
Speaker 1: there's no lack of liquidity, but I don't think it's

265
00:13:56,040 --> 00:13:59,600
Speaker 1: necessarily that that's strugging up to market. So on the margin,

266
00:14:00,040 --> 00:14:02,440
Speaker 1: guess it comes back to if you do have any

267
00:14:02,520 --> 00:14:05,600
Speaker 1: kind of setback, if there's any disappointments when we get

268
00:14:05,640 --> 00:14:09,000
Speaker 1: into the fall and increase in infections and concerns about

269
00:14:09,000 --> 00:14:11,760
Speaker 1: the reimposition of the lockdowns. You know, we will come

270
00:14:11,800 --> 00:14:15,000
Speaker 1: back inevitably either to the question, you know, how much

271
00:14:15,040 --> 00:14:17,760
Speaker 1: more consentral banks do when they've already done so much,

272
00:14:18,160 --> 00:14:22,080
Speaker 1: and or if it's been the need for further fiscal stimulus.

273
00:14:22,320 --> 00:14:24,240
Speaker 1: At some point, we've got to worry about the death

274
00:14:24,240 --> 00:14:26,640
Speaker 1: that's being issued. So I think if there is one

275
00:14:26,680 --> 00:14:28,600
Speaker 1: good thing that has come out about this, and I

276
00:14:28,640 --> 00:14:30,960
Speaker 1: think you alluded to it a bit sooner, you know,

277
00:14:31,000 --> 00:14:33,760
Speaker 1: we may not now get as much stimulus in the

278
00:14:33,840 --> 00:14:35,960
Speaker 1: next rounds from the US as you would have thought

279
00:14:36,000 --> 00:14:39,320
Speaker 1: before given this data. And you know, I really actually

280
00:14:39,360 --> 00:14:41,440
Speaker 1: think that is a good thing, because it is because

281
00:14:41,480 --> 00:14:43,680
Speaker 1: the data is better, so you don't need it. And

282
00:14:43,720 --> 00:14:46,120
Speaker 1: then also again we are going to have to worry

283
00:14:46,120 --> 00:14:48,000
Speaker 1: about the dead levels at some point, and at least

284
00:14:48,000 --> 00:14:49,640
Speaker 1: on the margin, that's not quite as big of a

285
00:14:49,680 --> 00:14:51,760
Speaker 1: problem as you might have feared. Dan. A lot of

286
00:14:51,760 --> 00:14:54,880
Speaker 1: people say that the rally in stocks hasn't been entirely

287
00:14:54,960 --> 00:14:59,560
Speaker 1: driven by FED stimulus, but just the fact that Facebook, Amazon,

288
00:14:59,800 --> 00:15:02,600
Speaker 1: My or soft Apple have all done well in this

289
00:15:02,760 --> 00:15:05,480
Speaker 1: environment with a push to the digital and if you

290
00:15:05,480 --> 00:15:09,920
Speaker 1: look at the combined capitalization of the top five holdings

291
00:15:09,960 --> 00:15:12,880
Speaker 1: in the S and P it has doubled since two

292
00:15:12,880 --> 00:15:16,960
Speaker 1: thousand thirteen. How much can we see this rotation into

293
00:15:17,000 --> 00:15:19,640
Speaker 1: the other sectors that are less loved, given the fact

294
00:15:19,960 --> 00:15:22,240
Speaker 1: that we're not clear on how much of a fundamental

295
00:15:22,280 --> 00:15:25,040
Speaker 1: recover we have that in the economy. Yeah, I think

296
00:15:25,080 --> 00:15:27,000
Speaker 1: it's exactly the right way to be thinking about it.

297
00:15:27,040 --> 00:15:29,320
Speaker 1: And I would actually divide up the market and probably

298
00:15:29,360 --> 00:15:32,840
Speaker 1: three different bins. So one, you certainly have technology, which

299
00:15:32,880 --> 00:15:35,000
Speaker 1: we all understand is going to be a long term

300
00:15:35,000 --> 00:15:37,360
Speaker 1: winner from the pandemic. But at the same time we

301
00:15:37,440 --> 00:15:41,160
Speaker 1: also appreciate that valuations have gotten very high. Just by

302
00:15:41,200 --> 00:15:43,520
Speaker 1: one measure of price to book for the sector is

303
00:15:43,560 --> 00:15:47,040
Speaker 1: eight times, which is the all time high for the sector.

304
00:15:47,120 --> 00:15:49,560
Speaker 1: So even if you know, we love those growth prospects,

305
00:15:49,800 --> 00:15:52,040
Speaker 1: you're paying a lot for that right now. So without

306
00:15:52,120 --> 00:15:55,960
Speaker 1: question of vulnerability, at least in the near tom poor technology.

307
00:15:56,000 --> 00:15:58,840
Speaker 1: I think the other part where we've seen those parts

308
00:15:58,840 --> 00:16:01,640
Speaker 1: of the market that had massively the underperformed until recently.

309
00:16:01,720 --> 00:16:05,120
Speaker 1: You think anything around tourism, uh and leisure and so on,

310
00:16:05,200 --> 00:16:08,400
Speaker 1: you know, a pretty significant opportunity there for those sectors

311
00:16:08,440 --> 00:16:11,960
Speaker 1: to rebound. Now, maybe not sustainably because a lot of

312
00:16:12,000 --> 00:16:15,720
Speaker 1: this will come down ultimately how optimistic we are about

313
00:16:15,720 --> 00:16:18,520
Speaker 1: getting a virus excuse me of vaccine and when. But

314
00:16:18,760 --> 00:16:22,160
Speaker 1: you know, from evaluation point of view, that's clearly an opportunity.

315
00:16:22,280 --> 00:16:24,000
Speaker 1: And then I think the other risk we need to

316
00:16:24,080 --> 00:16:27,800
Speaker 1: keep in mind are exactly those defensive sectors that have

317
00:16:27,960 --> 00:16:30,560
Speaker 1: done well, but have done well because we've been living

318
00:16:30,640 --> 00:16:33,720
Speaker 1: under lockdowns because we haven't had a vaccine. And as

319
00:16:33,800 --> 00:16:37,400
Speaker 1: that starts to ease, these sectors, which have also become

320
00:16:37,480 --> 00:16:40,160
Speaker 1: quite expensive, aren't going to see that long term earning

321
00:16:40,240 --> 00:16:43,640
Speaker 1: support the way you see in technology. So you think around,

322
00:16:43,720 --> 00:16:48,120
Speaker 1: say the market excusing the hypermarkets, you think about, you know,

323
00:16:48,200 --> 00:16:51,960
Speaker 1: cleaning supplies and any other defensive sectors. I think that's

324
00:16:52,000 --> 00:16:54,200
Speaker 1: probably the other key vulnerability that you need to keep

325
00:16:54,240 --> 00:16:56,560
Speaker 1: in mind when you're looking at your portfolio. Dan, is

326
00:16:56,560 --> 00:16:59,080
Speaker 1: the market right now pricing in a second wave? I

327
00:16:59,120 --> 00:17:01,960
Speaker 1: think that the questions to fold, so when will there

328
00:17:01,960 --> 00:17:03,960
Speaker 1: be a second wave? And I think most people are

329
00:17:04,040 --> 00:17:05,879
Speaker 1: pretty sure that there will be. I mean, it certainly

330
00:17:05,880 --> 00:17:08,919
Speaker 1: seems likely, but it's trying to anticipate then what the

331
00:17:08,960 --> 00:17:10,520
Speaker 1: response is going to be. And I think there's at

332
00:17:10,560 --> 00:17:13,359
Speaker 1: least there there's some ground for optimism that even if

333
00:17:13,359 --> 00:17:17,080
Speaker 1: there is a second wave, the economic impact won't necessarily

334
00:17:17,080 --> 00:17:19,440
Speaker 1: be so great. I think there's two reasons for that one.

335
00:17:19,920 --> 00:17:21,840
Speaker 1: You know, as opposed to the first wave, we know

336
00:17:21,960 --> 00:17:24,040
Speaker 1: this one is coming, or at least we can anticipate it,

337
00:17:24,080 --> 00:17:27,000
Speaker 1: so we'll be more prepared, you know, hopefully hospitals will

338
00:17:27,040 --> 00:17:30,560
Speaker 1: be ready, we'll have you know, better capability around tracking

339
00:17:30,560 --> 00:17:33,080
Speaker 1: and tracing, so hopefully we can have a more focused,

340
00:17:33,080 --> 00:17:36,800
Speaker 1: targeted response to whatever increase we do see, and we

341
00:17:36,840 --> 00:17:39,600
Speaker 1: won't need to have nationwide lockdowns where we've had so far.

342
00:17:39,680 --> 00:17:43,720
Speaker 1: So again, the economic impact will be hopefully much less

343
00:17:43,760 --> 00:17:45,480
Speaker 1: than we saw in the first round. And I think

344
00:17:45,520 --> 00:17:48,160
Speaker 1: the second thing that certainly changed over the last couple

345
00:17:48,200 --> 00:17:50,320
Speaker 1: of weeks is to some degree you could argue the

346
00:17:50,359 --> 00:17:53,320
Speaker 1: media attention has shifted a bit. It's not every day

347
00:17:53,359 --> 00:17:58,159
Speaker 1: on the front page, seven on the TV about the pandemic.

348
00:17:58,240 --> 00:18:01,280
Speaker 1: And you think about the psychological impact to that, you know,

349
00:18:01,359 --> 00:18:05,199
Speaker 1: people's desire to consume, to go out. If by the

350
00:18:05,240 --> 00:18:07,440
Speaker 1: time we get to the autumn, if the media attention

351
00:18:07,480 --> 00:18:10,680
Speaker 1: has faded someone, I think that will be at least

352
00:18:10,680 --> 00:18:13,719
Speaker 1: beneficial in terms of psychology, even though it's with our

353
00:18:13,800 --> 00:18:16,560
Speaker 1: questions are going to be a very serious health health issue.

354
00:18:16,640 --> 00:18:20,679
Speaker 1: People maybe may not feel quite so concerned and stressed

355
00:18:20,680 --> 00:18:23,320
Speaker 1: about the environment, and therefore you will have on the

356
00:18:23,359 --> 00:18:26,040
Speaker 1: margin a greater propensity to consume in a way that

357
00:18:26,080 --> 00:18:28,040
Speaker 1: we haven't seen over the last several months. Night, and

358
00:18:28,200 --> 00:18:29,679
Speaker 1: we've got to leave you that down. Always great to

359
00:18:29,680 --> 00:18:31,399
Speaker 1: catch out with you, Mike down mars that have been

360
00:18:31,440 --> 00:18:37,639
Speaker 1: prepared on this market. One of the great things that

361
00:18:37,800 --> 00:18:41,720
Speaker 1: is true is we take it for granted. And what

362
00:18:41,880 --> 00:18:45,520
Speaker 1: we take for granted is very simply the getting around

363
00:18:45,680 --> 00:18:48,480
Speaker 1: of New York. It can be seventy thod plus people,

364
00:18:49,040 --> 00:18:52,320
Speaker 1: It can be by any means of conveyance, but it

365
00:18:52,359 --> 00:18:56,040
Speaker 1: looks a lot easier than it actually is. Patrick Foy

366
00:18:56,200 --> 00:18:58,639
Speaker 1: is with us on this day of reopening for New

367
00:18:58,720 --> 00:19:01,359
Speaker 1: York City. We welcome in and across this nation and

368
00:19:01,400 --> 00:19:04,320
Speaker 1: to a worldwide audience. He is a small job as

369
00:19:04,400 --> 00:19:11,200
Speaker 1: chief executive Officer of the MTA, the Metropolitan Transit Authority. Patrick,

370
00:19:11,400 --> 00:19:16,679
Speaker 1: congratulations on getting to this point in this pandemic. It

371
00:19:16,760 --> 00:19:21,040
Speaker 1: has been an extraordinary effort. Give us an update on

372
00:19:21,119 --> 00:19:26,200
Speaker 1: the last two months. What surprised you about what needed

373
00:19:26,240 --> 00:19:29,280
Speaker 1: to be done in this City for the m t

374
00:19:29,480 --> 00:19:32,719
Speaker 1: A first. Thanks for having me. It's not a surprise,

375
00:19:32,880 --> 00:19:37,320
Speaker 1: but I am awe struck uh and overwhelmed by the

376
00:19:37,600 --> 00:19:41,840
Speaker 1: job that the m t A operating folks did subways, buses,

377
00:19:41,880 --> 00:19:45,360
Speaker 1: metro North Long Island Railroad, bridges and tunnels. They were

378
00:19:45,400 --> 00:19:50,720
Speaker 1: literally heroes, moving hero uh. The pandemic has obviously had

379
00:19:50,760 --> 00:19:53,159
Speaker 1: the epicenter has been New York City and the New

380
00:19:53,240 --> 00:19:59,359
Speaker 1: York New Jersey region UH, and the losses, whether fatalities,

381
00:20:00,080 --> 00:20:04,240
Speaker 1: nous is economic damage had been extensive. But the MTA

382
00:20:04,320 --> 00:20:07,960
Speaker 1: workforce has done a tremendous job. The second thing that

383
00:20:08,000 --> 00:20:12,720
Speaker 1: strikes me, obviously is the precipitous decline in ridership, which

384
00:20:13,119 --> 00:20:16,159
Speaker 1: paradoxically in this context is a good thing. It was

385
00:20:16,240 --> 00:20:21,960
Speaker 1: New Yorkers responding to Governor Cuomo's directive and suggestions directive

386
00:20:22,040 --> 00:20:24,679
Speaker 1: by executive order with the force of state law, but

387
00:20:24,760 --> 00:20:28,800
Speaker 1: also his suggestions that the way to minimize the number

388
00:20:28,800 --> 00:20:32,480
Speaker 1: of cases and fatalities UH in New York, New York

389
00:20:32,520 --> 00:20:34,680
Speaker 1: City and New York State was for people to stay

390
00:20:34,680 --> 00:20:38,760
Speaker 1: home and not ride public transit except for first responders

391
00:20:38,760 --> 00:20:42,760
Speaker 1: and essential employees. And New Yorkers answered that call happily

392
00:20:42,840 --> 00:20:47,040
Speaker 1: today we're restoring full service on the subway services good

393
00:20:47,040 --> 00:20:51,480
Speaker 1: this morning. Last week we did a physical survey of

394
00:20:51,520 --> 00:20:55,960
Speaker 1: about the nearly fifty thousand customers, and mass compliance, which

395
00:20:56,000 --> 00:21:00,320
Speaker 1: is now a part of state law, was the most

396
00:21:00,359 --> 00:21:03,359
Speaker 1: important that our customers. Sorry, the most important thing our

397
00:21:03,400 --> 00:21:06,200
Speaker 1: customers can do is to wear masks to protect themselves

398
00:21:06,760 --> 00:21:09,840
Speaker 1: and their co commuters, and our and our employees. And

399
00:21:09,880 --> 00:21:13,240
Speaker 1: that is an impressively high number. In one we want

400
00:21:13,240 --> 00:21:16,960
Speaker 1: to drive higher. How are you going to police usage

401
00:21:16,960 --> 00:21:19,640
Speaker 1: of mass I'm on a train, I'm on a bus,

402
00:21:20,040 --> 00:21:23,399
Speaker 1: and there's that one idiot, those two idiots without a mask.

403
00:21:24,000 --> 00:21:26,440
Speaker 1: How do you police that? So here here's an answer

404
00:21:26,440 --> 00:21:28,760
Speaker 1: to that question. First, we're starting from a good place,

405
00:21:28,840 --> 00:21:33,080
Speaker 1: which is compliance. I spent forty minutes in Grand Central

406
00:21:33,160 --> 00:21:37,240
Speaker 1: Terminal this morning. Uh and frankly, the customer compliance look

407
00:21:37,359 --> 00:21:40,160
Speaker 1: higher than that. What the m t A is doing

408
00:21:40,240 --> 00:21:44,199
Speaker 1: this morning in subway stations throughout the entire system is

409
00:21:44,600 --> 00:21:47,720
Speaker 1: distributing this week two million masks. We've got a million

410
00:21:47,760 --> 00:21:51,120
Speaker 1: masks donated by the state and the city each. We've

411
00:21:51,160 --> 00:21:54,480
Speaker 1: got MTA employees and volunteers from both the state and

412
00:21:54,520 --> 00:21:57,560
Speaker 1: the city, and the MT a helping distribute those masks.

413
00:21:57,560 --> 00:22:00,320
Speaker 1: So the most important action that can be taken by

414
00:22:00,320 --> 00:22:04,120
Speaker 1: our customers is wearing masks. A pretty good start. We're

415
00:22:04,119 --> 00:22:07,000
Speaker 1: gonna monitor it and report it coming forward. On top

416
00:22:07,080 --> 00:22:10,800
Speaker 1: of that, we are disinfecting every subway car, every bus,

417
00:22:10,840 --> 00:22:14,480
Speaker 1: every Metro North and Long Island Railroad, commuter rail at

418
00:22:14,560 --> 00:22:16,919
Speaker 1: least once a day, and in the case of subways

419
00:22:17,280 --> 00:22:21,120
Speaker 1: and busses and commuter rails multiple times a day. We're

420
00:22:21,119 --> 00:22:24,480
Speaker 1: disinfecting our stations, all of them at least twice a day.

421
00:22:24,640 --> 00:22:27,200
Speaker 1: We had asked a couple of weeks ago the great

422
00:22:27,200 --> 00:22:30,280
Speaker 1: news that ultra violet see white, according to research by

423
00:22:30,359 --> 00:22:35,800
Speaker 1: Dr David Brenner at Columbia University, kills the COVID nineteen virus.

424
00:22:35,960 --> 00:22:39,200
Speaker 1: And we're piloting that right this week, last week, this week,

425
00:22:39,280 --> 00:22:41,679
Speaker 1: and next week on subways and buses, will roll it

426
00:22:41,680 --> 00:22:45,440
Speaker 1: out to Metro North Railroad. Beyond that, we're also looking

427
00:22:45,440 --> 00:22:48,960
Speaker 1: at anti microbials, which promised to have the ability to

428
00:22:49,040 --> 00:22:53,520
Speaker 1: eradicate the COVID nineteen virus. Also to do that and

429
00:22:53,640 --> 00:22:56,320
Speaker 1: months after application, Mr Foy, let me bring in my

430
00:22:56,400 --> 00:23:00,040
Speaker 1: colleague Lisa. Lisa, Well, Terry, you know one thing that

431
00:23:00,080 --> 00:23:03,359
Speaker 1: I'm struggling to understand is how quickly ridership has to

432
00:23:03,400 --> 00:23:05,560
Speaker 1: get back up to near where it was in the

433
00:23:05,600 --> 00:23:08,040
Speaker 1: past in order for the m t A to remain

434
00:23:08,160 --> 00:23:13,080
Speaker 1: solvent without federal government help or additional borrowing perhaps through

435
00:23:13,080 --> 00:23:16,960
Speaker 1: the FEDS new facility. So at least a great question. Obviously,

436
00:23:17,160 --> 00:23:20,320
Speaker 1: in the Care's Act, the m t A received over

437
00:23:20,440 --> 00:23:23,960
Speaker 1: three point eight billion dollars the Heroes Act, which was

438
00:23:24,240 --> 00:23:27,080
Speaker 1: passed by a Speaker Pelosi, and both of those wheel

439
00:23:27,800 --> 00:23:30,159
Speaker 1: great thanks and have to acknowledge the work that Senator

440
00:23:30,160 --> 00:23:32,719
Speaker 1: Schumer and the New York Congressional delegation did on a

441
00:23:32,760 --> 00:23:36,439
Speaker 1: bipartisan basis. Like every transit agency in the country and

442
00:23:36,480 --> 00:23:40,280
Speaker 1: around the world, ridership has the client precipitously. That's the

443
00:23:40,320 --> 00:23:43,399
Speaker 1: flip side obviously of New Yorkers, and responding the Governor

444
00:23:43,480 --> 00:23:47,879
Speaker 1: Cromos directive and request that people stay home today is

445
00:23:47,880 --> 00:23:52,440
Speaker 1: an important day, phase one of the recovery of New York.

446
00:23:53,080 --> 00:23:57,480
Speaker 1: We expect that anecdotally. First of all, we're providing really solid,

447
00:23:57,520 --> 00:24:00,280
Speaker 1: reliable subway and bus service. Uh this more ing there

448
00:24:00,280 --> 00:24:03,879
Speaker 1: have been no delays reported. We see mass compliance at

449
00:24:03,920 --> 00:24:07,720
Speaker 1: a very high level, and we believe that ridership is

450
00:24:07,720 --> 00:24:11,760
Speaker 1: is headed higher. Obviously, we are in the phase one,

451
00:24:12,119 --> 00:24:16,320
Speaker 1: significantly below the ridership in pre pandemic days. We and

452
00:24:16,400 --> 00:24:19,560
Speaker 1: every other transit agency you're gonna require federal aid to

453
00:24:19,600 --> 00:24:23,840
Speaker 1: get us through. About half of our revenue is based

454
00:24:23,880 --> 00:24:26,119
Speaker 1: on fairs and tolls. The other half is on a

455
00:24:26,160 --> 00:24:30,440
Speaker 1: package of dedicated taxes and subsidies which are economically sensitive

456
00:24:30,520 --> 00:24:35,840
Speaker 1: or transaction UH based the FEDS action last week on

457
00:24:35,960 --> 00:24:40,760
Speaker 1: the municipal liquidity facility is important. Governor Cuomo is dedicated

458
00:24:41,080 --> 00:24:44,000
Speaker 1: the named rather the m t A as one of

459
00:24:44,040 --> 00:24:46,840
Speaker 1: the revenue bond issuers in the state of New York

460
00:24:46,840 --> 00:24:51,600
Speaker 1: that it's eligible for an NFL applications. Thank you so much,

461
00:24:51,760 --> 00:24:55,000
Speaker 1: Patrick Foy, the chair and CEO of the m t A.

462
00:24:55,040 --> 00:24:57,440
Speaker 1: We really appreciate your being with us and we hope

463
00:24:57,440 --> 00:24:59,840
Speaker 1: that you come back in order to provide us with

464
00:25:00,000 --> 00:25:03,960
Speaker 1: an update as to how the reopening doesn't go. Thanks

465
00:25:03,960 --> 00:25:08,240
Speaker 1: for listening to the Bloomberg Surveillance podcast. Subscribe and listen

466
00:25:08,440 --> 00:25:13,800
Speaker 1: to interviews on Apple Podcasts, SoundCloud, or whichever podcast platform

467
00:25:13,880 --> 00:25:18,200
Speaker 1: you prefer. I'm on Twitter at Tom Keene before the podcast.

468
00:25:18,240 --> 00:25:21,760
Speaker 1: You can always catch us worldwide I'm Bloomberg Radio