WEBVTT - Trump, Western Alliance, FedEx, and Apple 0:00:00.760 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day, we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.520 --> 0:00:15.560 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.400 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:21.560 at Bloomberg dot com slash podcast. All right, let's get 0:00:21.560 --> 0:00:25.239 the latest on this Trump indictment, the arraignment yesterday in 0:00:25.320 --> 0:00:29.720 Lower Manhattan. We're gonna roundtable listening today. Lisa Kamuso Miller, 0:00:29.960 --> 0:00:33.839 former Republican National Committee communications director and partner with Reset 0:00:33.880 --> 0:00:37.600 Public Affairs, joins us by phone, as does Bloomberg Washing 0:00:37.680 --> 0:00:41.520 correspond at Emily Wilkins, to discuss the indictment. Lisa, let's 0:00:41.520 --> 0:00:45.640 start with you here. What's the feeling in Republican circles 0:00:45.640 --> 0:00:50.040 about what took place in Lower Manhattan yesterday? Oh? Well, 0:00:50.040 --> 0:00:51.559 it's really hard to tell. I mean, this is so 0:00:51.680 --> 0:00:54.520 unprecedented and just so different from anything we've ever seen 0:00:54.520 --> 0:00:56.880 in the history of this country. I think, you know, 0:00:57.120 --> 0:00:59.760 there is a different point of view from a lot 0:00:59.840 --> 0:01:03.120 of different parts of the party, but ultimately the thought 0:01:03.280 --> 0:01:06.920 is that wherever happened yesterday in front of the world 0:01:07.760 --> 0:01:11.640 did nothing to bolster any support for Donald Trump from 0:01:11.680 --> 0:01:14.600 the Republicans that he lost in twenty sixteen. So he 0:01:14.680 --> 0:01:17.600 has a very core base of about thirty percent of 0:01:17.640 --> 0:01:20.319 the electorate on the Republican side that are still with him, 0:01:20.360 --> 0:01:23.399 regardless of how insane all of this really is. But 0:01:23.520 --> 0:01:25.600 there is just so much more to look at and 0:01:25.720 --> 0:01:28.880 unpack as this unfolds. But really, yesterday, I mean, the 0:01:28.920 --> 0:01:31.000 fact that he wants to run for office in twenty 0:01:31.040 --> 0:01:34.959 four but can go to mar Lago and yell from 0:01:34.959 --> 0:01:38.160 the microphone about how the fabric of the country is 0:01:38.560 --> 0:01:41.240 eroded and this is all fake and false is just 0:01:41.280 --> 0:01:43.760 to me. It's just totally in contrast with what the 0:01:43.800 --> 0:01:47.600 party at once, at one time stood for. But it 0:01:47.640 --> 0:01:51.360 seems like everybody in the party has gotten behind him, 0:01:51.400 --> 0:01:58.000 at least to call this this indictment political move right. 0:01:58.080 --> 0:02:00.800 I mean, we heard from Mitt Romney, who is no 0:02:00.960 --> 0:02:05.920 traditional fan of Donald Trump, he voted twice to impeach 0:02:06.080 --> 0:02:10.160 the former president, that this is overreached by Alvin Bragg 0:02:10.280 --> 0:02:13.880 and that this will damage the US judicial system. I 0:02:14.000 --> 0:02:17.520 guess you know, from from the Democrats point of view, 0:02:17.520 --> 0:02:19.560 Mitt Romney is as close to a voice of reason 0:02:19.600 --> 0:02:22.359 as a Republican Party has and he's calling out Bragg 0:02:22.440 --> 0:02:25.360 saying this is not right. Yeah, that's a real change 0:02:25.360 --> 0:02:27.720 in tone from him, and that was really surprising. But 0:02:27.800 --> 0:02:31.080 I suspect that part of it, too, is not necessarily political. 0:02:31.480 --> 0:02:33.680 But I think maybe what Romney is thinking behind the 0:02:33.720 --> 0:02:36.880 scenes is that it does. It's not necessarily about what 0:02:36.919 --> 0:02:40.239 Bragg has done, because I cannot believe that someone like um, 0:02:40.240 --> 0:02:43.280 like Dia Bragg would do anything but bring the strongest 0:02:43.320 --> 0:02:46.600 possible case in an instance like this. The difference here, though, 0:02:46.680 --> 0:02:51.160 is your republic Huh. At one point I was now 0:02:51.160 --> 0:02:55.600 I'm a little bit cot. I was confused. Well, I'm 0:02:55.639 --> 0:02:57.680 a never Trumper and there's no surprise about that, but 0:02:57.760 --> 0:02:59.480 I am still part of the Republican Party and I 0:02:59.560 --> 0:03:02.760 represent the side that's also more just confused by all 0:03:02.760 --> 0:03:05.040 of this. We're confused by this. But but this trend 0:03:05.120 --> 0:03:07.720 is not We're not going backwards here. That's the difference 0:03:07.800 --> 0:03:10.079 is that we're not going back to where we once were. 0:03:10.400 --> 0:03:12.080 We have to go through this, so we have to 0:03:12.080 --> 0:03:14.400 figure out as a party, as a country, how it 0:03:14.440 --> 0:03:17.640 is we're going to manage And because Trump is not 0:03:17.680 --> 0:03:20.639 going away, So it's more of a how do we 0:03:20.880 --> 0:03:23.680 figure out what it is that he's done to unlock 0:03:23.800 --> 0:03:27.079 this core of voters in the Republican side. So back 0:03:27.120 --> 0:03:30.480 to my point about Trump though, or excuse me about Romney. Romney, 0:03:30.520 --> 0:03:33.680 to me, if he is trying to unlock and talk 0:03:33.680 --> 0:03:35.680 about this in a way that he calls this political, 0:03:36.040 --> 0:03:38.240 he is most likely thinking that not only is the 0:03:38.400 --> 0:03:41.640 damage going to come from Trump, and the damage is 0:03:41.680 --> 0:03:44.480 going to be done in a way that will cause 0:03:44.840 --> 0:03:47.880 harm to the judicial system, it'll also cause a problem 0:03:48.240 --> 0:03:51.840 for any future case that will come because everything Trump 0:03:51.920 --> 0:03:55.680 is trying to do is this credit right, These all 0:03:55.680 --> 0:03:59.240 of these allegations about payments have been confusing to people. 0:03:59.560 --> 0:04:02.480 No one fundamentally understands why it matters. The truth is 0:04:02.560 --> 0:04:05.640 that he but everyone sort of agrees that it happened 0:04:05.920 --> 0:04:08.800 right in terms of the actual payments. Let me bring 0:04:08.840 --> 0:04:14.120 in Emily Wilkins from Bloomberg Government, Emily the senior statesman 0:04:14.160 --> 0:04:17.760 from Utah, and I mean, Mitt Romney is the one 0:04:17.800 --> 0:04:22.560 of the more statesman like people in the entire you know, uh, Senate, 0:04:22.920 --> 0:04:26.280 I think everyone would agree, he said, quote the prosecutors 0:04:26.279 --> 0:04:30.560 overreach that's a dangerous precedent for criminalizing political opponents and 0:04:30.680 --> 0:04:34.040 damages the public's faith in our justice system. Are there 0:04:34.080 --> 0:04:38.120 any statesman, you know, are then there any like legit, 0:04:38.240 --> 0:04:41.040 respectable senators Emily who have come out on the other 0:04:41.080 --> 0:04:46.560 side of this, I mean for Democrats absolutely, you certainly 0:04:46.640 --> 0:04:49.279 see them, you know, say that that, you know, encouraging 0:04:49.720 --> 0:04:53.279 what da brag has done here, uh, kind of going 0:04:53.320 --> 0:04:55.839 after Trump saying like, look, you know, if a potential 0:04:55.839 --> 0:04:57.560 crime was being committed, that they have the right to 0:04:57.560 --> 0:04:59.960 look into it. At the same point, I do think 0:05:00.080 --> 0:05:03.440 there is a sense in DC and on Capitol Hill 0:05:04.000 --> 0:05:08.960 that this is not the strongest case against Trump. I mean, remember, 0:05:09.160 --> 0:05:12.279 there are multiple cases that are looking into the former 0:05:12.360 --> 0:05:14.800 president right There's the one in Georgia that deals with 0:05:14.839 --> 0:05:18.000 the twenty twenty election and interference. There's the one in 0:05:18.120 --> 0:05:21.600 DC right now with the Special Special Council that's looking 0:05:21.600 --> 0:05:24.560 into the classified documents. And there's a sense that some 0:05:24.680 --> 0:05:28.200 of those are actually bigger concerns than any sort of 0:05:28.240 --> 0:05:32.120 mismanagement in bookkeeping or hush money payments. And so I 0:05:32.160 --> 0:05:34.000 think there's kind of and I will be interested to 0:05:34.000 --> 0:05:37.320 see how Mitt Romney responds when some of those cases 0:05:37.320 --> 0:05:39.640 are brought forward because if you look at the Republican 0:05:39.720 --> 0:05:43.000 Party right now on Capitol Hill, they are really done 0:05:43.000 --> 0:05:45.520 with the twenty twenty election. They're done with calls that 0:05:45.560 --> 0:05:48.200 it's fraudulent. They want to get past that and move 0:05:48.240 --> 0:05:51.120 past that. If you see another one of these indictments, 0:05:51.120 --> 0:05:53.320 they're going to have to confront it again. And I 0:05:53.360 --> 0:05:55.760 think for a number of them, you aren't going to 0:05:55.760 --> 0:05:59.320 see maybe as much support for Trump or as much 0:05:59.360 --> 0:06:02.599 blowback against uh. You know, whoever the DA is who 0:06:02.640 --> 0:06:05.920 brings the case forward. I mean this particular instance, it's 0:06:06.000 --> 0:06:08.400 really easy for Republicans, you know, when you ask them 0:06:08.400 --> 0:06:11.000 about Trump, when you ask them about the indictment, they 0:06:11.000 --> 0:06:16.039 will immediately change the channel to district District Attorney Alvin Bragg. 0:06:16.120 --> 0:06:18.880 You saw Kevin McCarthy yesterday, you know, really did not 0:06:19.000 --> 0:06:22.200 comment about Trump much at all. But when after Alvin 0:06:22.240 --> 0:06:25.320 Bragg saying he's attempting to interfere with our democratic process, 0:06:25.360 --> 0:06:27.840 that Congress will hold him accountable. This is really a 0:06:27.839 --> 0:06:31.520 talking point that everyone's so far been able to get behind. Lisa, 0:06:31.680 --> 0:06:35.080 you're the former communications director for the Republican National Committee. 0:06:35.360 --> 0:06:39.120 Has where has the Republican Party go gone in your 0:06:39.640 --> 0:06:41.840 in your opinion, I mean, is it gone to the 0:06:41.880 --> 0:06:46.360 Trump's party Trump wing? And is that permanent? I mean, 0:06:46.440 --> 0:06:52.200 where where did your Republican Party go? That's the million 0:06:52.200 --> 0:06:54.880 dollar question. Uh. You know the funny thing about all 0:06:54.880 --> 0:06:56.680 of this, and it's really not very funny that the 0:06:57.200 --> 0:07:01.360 one thing that now Publicans behind the scenes are trying 0:07:01.400 --> 0:07:04.680 to figure out is how how do they access how 0:07:04.680 --> 0:07:07.240 do they unlock the lockbox that Trump has figured out 0:07:07.279 --> 0:07:09.680 how to hold onto in that thirty percent, that sort 0:07:09.680 --> 0:07:14.800 of core voter pool that is with him. The difficulty, though, 0:07:14.880 --> 0:07:18.240 and Emily's point is absolutely right Capitol Hill is not 0:07:18.320 --> 0:07:22.360 They are not wanting to talk anymore about twenty twenty 0:07:21.680 --> 0:07:25.200 the leadership. There's a vacuum, right And the only thing 0:07:25.240 --> 0:07:29.400 that continues to draw attention and continues to hold onto 0:07:29.480 --> 0:07:32.520 those voters that are really hard the hardest to get 0:07:32.560 --> 0:07:35.720 to is Trump. So I think that more than ever before, 0:07:36.800 --> 0:07:39.520 Republicans are brightened to step up and stand up to him, 0:07:39.720 --> 0:07:42.440 and so they're happier to talk about Alvin Bragg And 0:07:42.800 --> 0:07:45.040 I mean, he's a He's become a household name over 0:07:45.080 --> 0:07:47.400 the course of the last couple of months and years, 0:07:48.120 --> 0:07:50.320 the party itself, though, is going to have to figure 0:07:50.360 --> 0:07:54.880 out how to carve their own message out and talk 0:07:55.000 --> 0:07:57.600 to the elector at that portion of the electorate that 0:07:57.720 --> 0:08:00.840 stepped away from Trump in sixteen or excuse me that 0:08:00.840 --> 0:08:03.120 we're with Trump in sixteen but stepped away from him 0:08:03.120 --> 0:08:05.480 in twenty twenty. Those are the voters. Those are like 0:08:05.520 --> 0:08:09.000 middle class voters that are They're desperate for support, They're 0:08:09.000 --> 0:08:11.680 desperate for help, they want to access the economy in 0:08:11.680 --> 0:08:13.480 a way. It's different. So all right, Lisa, thank you 0:08:13.480 --> 0:08:15.880 so much for joining us. Lisa's Camuso Miller partner, I 0:08:15.960 --> 0:08:19.640 Reset Public Affairs, and Emily Wilkins from a Bloomberg News 0:08:19.720 --> 0:08:22.920 joining us talking to us about this Trump in Diamond. 0:08:24.040 --> 0:08:27.920 You're listening to the Team Cancer Line program, Bloomberg Markets 0:08:27.960 --> 0:08:31.040 Weekdays and ten Amias Daring on Bloomberg dot Com, the 0:08:31.120 --> 0:08:33.839 I Heart Radio app and the Bloomberg Business App. We're 0:08:33.880 --> 0:08:39.160 listening on demand wherever you get your podcast. We welcome 0:08:39.200 --> 0:08:43.200 now our Bloomberg TV viewers and radio listeners. The New 0:08:43.280 --> 0:08:47.160 York International Also show begins on Friday to help us 0:08:47.160 --> 0:08:50.839 prepare for its Jeremy pappin This On America's chairperson and 0:08:50.960 --> 0:08:54.080 Bloomberg's Matt Miller join us now, Matt, why don't you 0:08:54.160 --> 0:08:56.440 kick things off? All right? Thanks? You know what I 0:08:56.480 --> 0:08:59.319 would love to start with the IRA, Jeremy, And this 0:08:59.360 --> 0:09:02.239 is the Inflation and Reduction Act that we all struggled 0:09:02.240 --> 0:09:06.600 for so many months to understand. It's key because if 0:09:06.600 --> 0:09:10.320 you get it right, consumers automatically get a seventy five 0:09:10.520 --> 0:09:14.480 hundred dollars tax credit for buying your electric vehicles. But 0:09:14.520 --> 0:09:16.760 if you get it wrong, they get Bob kiss and 0:09:16.800 --> 0:09:19.959 you need the lower prices or given centis incentives. So 0:09:20.320 --> 0:09:22.800 what have you got that I can get seventy five 0:09:22.880 --> 0:09:27.240 hundred dollars off from Uncle sam on? And what are 0:09:27.240 --> 0:09:30.920 you planning on putting out that's gonna be IRA compliant? 0:09:32.200 --> 0:09:34.960 Good the good morning. Well today you've got a Nissan 0:09:35.080 --> 0:09:39.120 Leaf that fully qualifies for the seventy five hundred dollar 0:09:39.840 --> 0:09:44.760 tax incentive, and and you've got a Nissan Aria that 0:09:45.080 --> 0:09:49.840 fully qualifies for the commercial leaves under the forty five 0:09:50.440 --> 0:09:53.360 provision of the the IRA. So we've got two great 0:09:53.400 --> 0:09:58.200 offerings in the market today, and we think the IRA 0:09:58.320 --> 0:10:01.800 IS it's tremendous opportunity. The rules are clear now, the 0:10:02.040 --> 0:10:06.520 framework is established for several years, and the company is 0:10:06.559 --> 0:10:10.400 developing plants to be fully compliant with IRA. We will 0:10:10.440 --> 0:10:15.439 be uh producing a number of EVS from our Campton 0:10:15.520 --> 0:10:18.839 plant in Mississippi by the end of twenty twenty five 0:10:18.960 --> 0:10:21.800 and and those and those vehicles would be fully compliant 0:10:23.240 --> 0:10:26.480 with IRA. So I think we we welcome the IRA, 0:10:26.679 --> 0:10:29.440 the clarity and the and the and and what it 0:10:29.480 --> 0:10:32.800 means in terms of developing the EV demand and business 0:10:32.800 --> 0:10:35.719 in the in the USA. In terms of EVS, I mean, 0:10:35.760 --> 0:10:37.800 you did have the lead at one point. A lot 0:10:37.840 --> 0:10:40.960 of people forget that Nissan was a pioneer right with 0:10:41.040 --> 0:10:44.680 the Leaf and you still got that coming out. What 0:10:44.920 --> 0:10:48.040 are the higher end vehicles that you can produce here? 0:10:48.040 --> 0:10:50.520 You know, I've driven the QX sixty from Infinity, I've 0:10:50.600 --> 0:10:53.839 driven the QX aighty, fantastic vehicles, but they don't have 0:10:53.920 --> 0:10:59.640 the battery powered um uh sort of forward thinking power 0:10:59.679 --> 0:11:04.800 plant that that customers are going to need in ten years. Yeah. 0:11:04.840 --> 0:11:07.959 Look today again, it's it's Leaved that you mentioned. Is 0:11:07.960 --> 0:11:12.200 Aria area is packed with technology. It's a it's a 0:11:12.280 --> 0:11:14.440 it's an evy, so you get all the driving pleasure 0:11:14.480 --> 0:11:18.640 out of it. We've enhanced the E force, which is 0:11:18.720 --> 0:11:21.880 motion control, which provides you a sense of safety that 0:11:22.200 --> 0:11:26.920 you know is unprecedented. The connected services in the car 0:11:27.080 --> 0:11:30.000 is amazing. We've added a poor Pilot two point zero, 0:11:30.080 --> 0:11:35.400 which is some you know, safety feature, and the autonomous 0:11:35.520 --> 0:11:38.439 driving capability. So there's a lot of technology in an 0:11:38.440 --> 0:11:41.640 area today and that's that starts at forty three thousand dollars, 0:11:41.640 --> 0:11:45.280 so that's very competitive in the marketplace as well. Um 0:11:45.440 --> 0:11:48.040 and and the future. You know, Nissan is going to 0:11:48.120 --> 0:11:51.720 be launching about twenty seven new cars in the in 0:11:51.760 --> 0:11:54.480 the next seven years, nineteen of which will be full 0:11:54.520 --> 0:11:57.040 battery electric vehicles and most of which will come to 0:11:57.120 --> 0:11:59.920 the US. We'll have an EV in every market that 0:12:00.080 --> 0:12:05.200 is significant to the US customer. Jeremy, if I have 0:12:05.880 --> 0:12:09.080 range anxiety and I want to stick with a traditional 0:12:09.120 --> 0:12:13.160 combustion engine, what can you offer me? Are we moving 0:12:13.200 --> 0:12:17.320 away from that too quickly? Now? I think you know 0:12:17.400 --> 0:12:20.560 today the area is a three hundred miles EV already, 0:12:20.640 --> 0:12:22.680 and you know it's a it's a it's a very 0:12:22.760 --> 0:12:26.280 good range for the for the for the daily use 0:12:26.400 --> 0:12:29.160 and the most commonly used routes in the US. I 0:12:29.280 --> 0:12:33.760 understand the question and the charging experience. That's why the 0:12:33.840 --> 0:12:37.520 charging experience is so important, and that's why the efforts 0:12:37.520 --> 0:12:39.959 that are being put in place by private and public 0:12:40.800 --> 0:12:45.600 you know, funding to deploy charging infrastructure is so important 0:12:45.640 --> 0:12:48.480 because that's going to be critical to the to the 0:12:48.600 --> 0:12:51.679 to the ev experience of the of the customer. So 0:12:52.080 --> 0:12:55.000 I think it's it's a matter of of of the 0:12:55.120 --> 0:12:58.960 charging the charging network development. We at Nissan already have 0:12:59.040 --> 0:13:04.719 a very well established charging network throughout dealer network and 0:13:04.960 --> 0:13:07.480 thinking about technology of the future of the company is 0:13:07.520 --> 0:13:11.480 investing into all solid state battery, which will you know, 0:13:11.840 --> 0:13:16.360 double the power density, lower the charging time, definitely increase 0:13:16.440 --> 0:13:19.000 further the range. And so that's the future of breaks 0:13:19.080 --> 0:13:22.640 rain technology. The confidence in terms of the technology we're 0:13:22.679 --> 0:13:25.520 bringing and the breakthroughs means you know, in twenty thirty, 0:13:25.600 --> 0:13:29.760 we think ourselves of evs will largely exceed forty percent 0:13:29.880 --> 0:13:36.800 of ourselves. So there will be an answer for all. Okay, 0:13:37.160 --> 0:13:39.440 let's let's switch gears a little bit. I know you 0:13:39.440 --> 0:13:42.559 can't switch gears an electric vehicle, but nevertheless, we'll do it. Um, 0:13:43.120 --> 0:13:44.960 let's talk a little bit about where we are with 0:13:45.000 --> 0:13:48.079 the daaler network. Jeremy, a year ago, if I'd gone 0:13:48.080 --> 0:13:50.280 to the dealer network, The biggest concern would have been 0:13:50.280 --> 0:13:54.600 the available of availability of inventory, the availability of newcasts 0:13:54.640 --> 0:13:57.880 to buy. I wonder whether now the biggest concern that 0:13:57.920 --> 0:14:01.520 the dealer network has is the certain manificant rise in 0:14:01.679 --> 0:14:04.559 rates interest rates that we've seen over the last year, 0:14:04.600 --> 0:14:07.240 the fact the ECB everybody is raising rates right now, 0:14:07.480 --> 0:14:11.280 and I'm wondering what impact you see that having. It's 0:14:11.320 --> 0:14:15.559 a very good question. I think you're right that availability 0:14:15.760 --> 0:14:18.040 was an issue. It's less of an issue today, but 0:14:18.400 --> 0:14:22.160 still delier inventories are very tight at Nissan, so the 0:14:22.160 --> 0:14:27.120 market is clearly pulling. And today what we see in 0:14:27.240 --> 0:14:30.200 terms of the market demand is that it's it's exceeding 0:14:30.240 --> 0:14:35.000 the production that we have. And where we're seeing a 0:14:35.160 --> 0:14:39.920 change in terms of the interest rates having is people 0:14:39.920 --> 0:14:44.320 are shopping for entry segments. They're showing interest in the 0:14:44.720 --> 0:14:48.200 entry segments that perhaps was less there a year ago. 0:14:48.440 --> 0:14:51.240 For Nissan, it's good news because we've got a Versa, 0:14:51.320 --> 0:14:53.680 we've got a center, we've got a Kicks. All of 0:14:53.720 --> 0:14:58.160 those are very strong value for many offerings in entry segments. 0:14:58.200 --> 0:15:01.720 We have a very well established pres since great products. 0:15:01.800 --> 0:15:06.440 So the customer shopping shopping a Nissan that is shopping 0:15:06.480 --> 0:15:09.240 for a price point given where interest rates are as 0:15:09.280 --> 0:15:12.680 an answer in our product lineup today, you're just the 0:15:12.760 --> 0:15:15.760 product lineup today. Um, A lot of it is impressive 0:15:15.800 --> 0:15:18.760 to me. I love the z that's one that you 0:15:18.800 --> 0:15:23.280 can't make enough of, I'm sure. But Americans in general 0:15:23.360 --> 0:15:27.400 like bigger things like the q X eight, like the Armada, 0:15:27.720 --> 0:15:31.280 like the Titan, and that's scheduled um for ending production. 0:15:31.560 --> 0:15:33.880 What are you gonna do about the big truck big 0:15:34.040 --> 0:15:41.320 suv segment beyond say twenty twenty five. The Titan, the Armada, 0:15:41.440 --> 0:15:44.360 the q x X eight that you've mentioned, they're all 0:15:44.520 --> 0:15:48.640 very good business for us today. The large SUVs are 0:15:49.040 --> 0:15:54.160 clearly an area where we are meeting customer demand and 0:15:54.400 --> 0:15:58.560 determined to remain very relevant in the in the marketplace. 0:15:58.640 --> 0:16:01.400 So these are these are good. These are good the 0:16:01.560 --> 0:16:05.520 good segments for us in the works. Again, you can 0:16:05.640 --> 0:16:08.720 find that you can find all of those vehicles as now. 0:16:08.840 --> 0:16:10.960 But what about in twenty twenty six, I mean, aren't 0:16:10.960 --> 0:16:14.040 you going to end production of the Titan? Then the 0:16:15.600 --> 0:16:20.160 Titan again, is it's fully available today We're working on 0:16:20.800 --> 0:16:25.520 remaining very relevant in the marketplace, working on the solutions 0:16:25.600 --> 0:16:30.360 around the trucks, that are to world's electrification as well. So, um, 0:16:31.120 --> 0:16:34.360 the Titan as we know is, you know, is is 0:16:34.360 --> 0:16:37.240 meeting the customer and and and and we're working on 0:16:37.480 --> 0:16:41.880 what can come next. Guys, we'll wrap it up there. 0:16:41.880 --> 0:16:44.520 Really looking forward to the show, Jeremy. I'm sure Matt 0:16:44.560 --> 0:16:46.760 will be popping down to take a look at what's 0:16:46.760 --> 0:16:50.800 on offer. Jeremy, happened of Nissan And of course Bloomberg's 0:16:50.800 --> 0:16:54.080 one and only Matt Miller. You're listening to the tape 0:16:54.280 --> 0:16:57.640 cans are live program Bloomberg Markets weekdays at ten am 0:16:57.680 --> 0:17:01.560 Eastern on Bloomberg Radio, the t Bloomberg dot Com, and 0:17:01.640 --> 0:17:04.399 the Bloomberg Business App. You can also listen live on 0:17:04.520 --> 0:17:07.760 Amazon Alexa from our flagship New York station. Just say 0:17:07.840 --> 0:17:13.080 Alexa play Bloomberg eleven thirty. You want to focus on 0:17:13.119 --> 0:17:16.639 Europe right now? Tomas and Nets, senior equity analyst. He 0:17:16.680 --> 0:17:20.639 covers the European banks for bloomerket Intelligence. He's based in London. Toomas, 0:17:20.720 --> 0:17:23.879 thanks so much for joining us here, framaut for us, 0:17:23.960 --> 0:17:26.679 what you think the risk could be for European banks? 0:17:27.560 --> 0:17:29.399 You know, we had Silicon Valley Bank here in the 0:17:29.520 --> 0:17:31.920 US and that kind of spook people got people focusing 0:17:31.960 --> 0:17:33.680 on the health of the banks. What's the concern about 0:17:33.720 --> 0:17:37.040 European banks and real estate? Hi, guys, thank you so 0:17:37.160 --> 0:17:39.120 much for having me. Yes. Well, first of all, Yes, 0:17:39.119 --> 0:17:42.000 as you mentioned, everybody is right now looking at commercial 0:17:42.080 --> 0:17:45.840 real estate. This is the asset which everybody's focusing. After 0:17:46.080 --> 0:17:48.920 SVB and crazy with drama. Everybody is trying to understand 0:17:48.920 --> 0:17:52.080 what is the impact of high elevated interest rates on 0:17:52.280 --> 0:17:56.199 highly leveraged the markets and commercial realistates take all the 0:17:56.240 --> 0:17:59.600 boxes unfortunately, and when we look at the European banks, 0:17:59.600 --> 0:18:01.560 we are then in fact that there's nearly one point 0:18:01.600 --> 0:18:04.680 four trillion of euros of cre loans on the balance 0:18:04.720 --> 0:18:08.760 street at the moment. It is spread across European markets, UK, France, 0:18:08.800 --> 0:18:12.560 Germany has the highest volumes. In terms of the exposure 0:18:12.600 --> 0:18:15.239 as the persentage of total loans, Nordic banks actually are 0:18:15.280 --> 0:18:17.159 screening the worst. They have more than ten percent of 0:18:17.200 --> 0:18:20.880 the total loans versus around six to seven for European banks. 0:18:20.920 --> 0:18:22.840 And in terms of the risk, of course, there is 0:18:22.840 --> 0:18:25.000 a risk of refinancing, there is a risk of higher rates, 0:18:25.080 --> 0:18:27.240 there is a risk of not repaying the debt on time, 0:18:27.680 --> 0:18:29.959 so which for the banks. Means we can create some 0:18:30.000 --> 0:18:33.000 imperment charges. Maybe there will be a right of even 0:18:33.040 --> 0:18:35.760 ever happening, but it's not going to happen over one quarter. 0:18:36.280 --> 0:18:38.640 If there's any stresses in the market, it's gonna take 0:18:38.680 --> 0:18:41.960 several quarters to play. But investors definitely want to understand 0:18:42.200 --> 0:18:45.479 who is most exposed, whose portfolio is most vulnerable, and 0:18:45.520 --> 0:18:49.600 how they will produce portfolio incoming quarters. What do we 0:18:49.720 --> 0:18:52.560 hear from regulators, what do we hear from the ECB? 0:18:52.840 --> 0:18:55.960 I mean, the concern here Tamash as you know, is 0:18:56.080 --> 0:19:00.920 that you know, the FED drop the ball or didn't 0:19:00.960 --> 0:19:04.040 do anything with the ball. So is it gonna be 0:19:04.160 --> 0:19:07.639 a different story in Europe? You know, that's very interesting 0:19:07.680 --> 0:19:10.439 because it SB has been looking into cre market already 0:19:10.480 --> 0:19:12.040 for a couple of years. I think in two thousand 0:19:12.080 --> 0:19:14.800 and eighteen they started to collect data from the banks 0:19:14.880 --> 0:19:17.359 on their explorer to the to the market. Sadly this 0:19:17.520 --> 0:19:20.119 data is not available for public maybe it will be 0:19:20.240 --> 0:19:24.280 right now, and it SB has had flagged already. Commercial 0:19:24.359 --> 0:19:27.160 real estate market is one of the vulnerabilities even before 0:19:27.359 --> 0:19:30.040 SB and courage with drama right, So definitely it is 0:19:30.080 --> 0:19:33.399 on the rather for the regulators. They may be looking 0:19:33.400 --> 0:19:36.399 into introducing some macropodential measures to ease the pressure for 0:19:36.480 --> 0:19:39.120 the banks, to ease the pressure to to to stop 0:19:39.160 --> 0:19:42.080 the financing maybe or make financing a little bit more safe. 0:19:42.440 --> 0:19:45.680 So definitely sb IT has will have to look into 0:19:45.800 --> 0:19:48.399 this more more carefully. And it's all about what's going 0:19:48.440 --> 0:19:50.920 to happen the interest racing coming months, right, whether they're 0:19:50.920 --> 0:19:53.359 gonna be raising or not, and what is the policy 0:19:53.400 --> 0:19:56.159 over there? And Toomas, I mean unlike here in the 0:19:56.240 --> 0:19:57.840 US or we have a lot of regional banks that 0:19:58.480 --> 0:20:00.960 you know, maybe not may not be to take the risk. 0:20:01.040 --> 0:20:04.640 Here in Europe, the real estate loans are from big, 0:20:04.760 --> 0:20:07.240 big banks. So does that limit kind of the risk 0:20:07.320 --> 0:20:10.639 a little bit or do they are you still concerned? Yes, 0:20:10.760 --> 0:20:13.199 as you mentioned it right right, No, for the biggest 0:20:13.240 --> 0:20:16.200 banks H S, B, C, BNP and the laws like that, 0:20:16.720 --> 0:20:19.040 it is around six to seven eight persons. For Nordics 0:20:19.040 --> 0:20:21.080 banks a little bit more, it's more than ten persons, 0:20:21.160 --> 0:20:23.399 so they are definitely more exposed. But also we are 0:20:23.440 --> 0:20:26.600 having we're having four Germans specialized banks which are just 0:20:26.800 --> 0:20:30.520 doing commercial realized state financing. They are quite small, not 0:20:30.640 --> 0:20:33.879 all of them are publicly publicly treaded so definitely there 0:20:33.920 --> 0:20:35.639 would be kind of the Canary mind, you know, there 0:20:35.640 --> 0:20:37.160 would be there, there would be bad way, Okay, what's 0:20:37.200 --> 0:20:39.640 happening with the market these banks, these banks are which 0:20:39.680 --> 0:20:43.280 are very much specializing only in creft financing. What's happening 0:20:43.320 --> 0:20:47.399 with those loans in the incoming quarter, in the reporting period. 0:20:47.640 --> 0:20:50.960 That would definitely be a providing as youthful information. What 0:20:51.200 --> 0:20:53.119 we can expect with other banks, all right, and we 0:20:53.320 --> 0:20:55.680 can also expect is to get some good news or 0:20:55.760 --> 0:20:59.879 good intelligence, good data. Bloomer Intelligence is holding an investor 0:21:00.000 --> 0:21:03.320 event on April twentieth talking about real estate, the Real 0:21:03.440 --> 0:21:06.479 Estate Summit twenty twenty three. Tell us about this uh 0:21:06.960 --> 0:21:10.160 conference you guys are having. Is it? Is it in London? Yes, 0:21:10.240 --> 0:21:12.560 it's based in London. It is organized by my colleagues 0:21:12.560 --> 0:21:15.080 from the real estate team. So definitely were gathering all 0:21:15.119 --> 0:21:18.120 the specialists in the market. It is it is second 0:21:18.160 --> 0:21:19.840 time we are organizing the even so a lots of 0:21:20.080 --> 0:21:23.159 market participants special will be there talking about actually what 0:21:23.280 --> 0:21:25.320 we are discussing at the moment, right, So definitely it's 0:21:25.320 --> 0:21:27.840 gonna be on agenda so very much, you know, inviting 0:21:27.880 --> 0:21:30.399 everyone who is interested in participating to learn more from 0:21:30.400 --> 0:21:33.480 the market experts from Bloomberg Intelligence team as well from analysts, 0:21:33.520 --> 0:21:38.240 from real estate specialists, to get the better understanding of 0:21:38.320 --> 0:21:40.399 what's happening with the office prices in UK, you know, 0:21:40.520 --> 0:21:43.800 in France and Germany, across all the capital cities. What 0:21:43.880 --> 0:21:47.080 are the expectations and how how this situation can play out? 0:21:47.560 --> 0:21:50.359 All right, really interesting, so that so all our friends 0:21:50.480 --> 0:21:53.440 in London they can check that out. Got to Bloomberg 0:21:53.480 --> 0:21:56.200 dot com. They'll have some got the conferences sectionary. He'll 0:21:56.240 --> 0:21:58.640 see some opportunities there to sign up for that. It's 0:21:58.680 --> 0:22:01.399 in conjunction with the European Public Real Estate Association, So 0:22:01.520 --> 0:22:06.560 Bloomberg Intelligence April twentieth in New York, Bloomberg Intelligence and EPRA. 0:22:06.840 --> 0:22:10.040 It's the real Estate Finance Summit twenty twenty three. So 0:22:10.080 --> 0:22:12.240 if you're in London, check that out, get the latest 0:22:12.760 --> 0:22:15.080 on the real estate business and perhaps you know the 0:22:15.200 --> 0:22:18.560 impact of the risks it means for some of the 0:22:18.640 --> 0:22:22.000 European banks, and clearly that is a global issue. US 0:22:22.080 --> 0:22:24.240 banks are being questioned and it's gonna be a real 0:22:24.280 --> 0:22:26.840 focus for when the bank's report earnings in the next 0:22:26.880 --> 0:22:28.399