1 00:00:00,880 --> 00:00:05,199 Speaker 1: This is Bloomberg Business Week Daily reporting from the magazine 2 00:00:05,240 --> 00:00:09,840 Speaker 1: that helps global leaders stay ahead with insight on the people, companies, 3 00:00:09,880 --> 00:00:14,760 Speaker 1: and trends shaping today's complex economy. Plus global business, finance 4 00:00:14,800 --> 00:00:18,360 Speaker 1: and tech news as it happens. Bloomberg Business Week Daily 5 00:00:18,680 --> 00:00:23,120 Speaker 1: with Carol Masser and Tim Steneveek on Bloomberg Radio. 6 00:00:23,280 --> 00:00:26,360 Speaker 2: Hi, everyone, welcome to the weekend edition of Bloomberg Business Week. 7 00:00:26,760 --> 00:00:30,360 Speaker 2: It was the fifth FOMC meeting and decision of the 8 00:00:30,440 --> 00:00:33,080 Speaker 2: year that happened this past week. It was the second 9 00:00:33,200 --> 00:00:35,400 Speaker 2: for the still new FED chair. I think it's safe 10 00:00:35,400 --> 00:00:38,280 Speaker 2: to say Kevin Walsh a fractured nine to three FED 11 00:00:38,360 --> 00:00:41,920 Speaker 2: vote that left rates unchanged. Dallas FED President Lori Logan, 12 00:00:42,000 --> 00:00:46,360 Speaker 2: Cleveland's Beth Hammick, Minneapolis FED chief Neil Kashkari, they all 13 00:00:46,440 --> 00:00:49,120 Speaker 2: dissented in favor of raising interest rates here in the 14 00:00:49,200 --> 00:00:52,720 Speaker 2: US by a quarter percentage point. As for Chairman Warsh, 15 00:00:52,800 --> 00:00:55,520 Speaker 2: he emphasized his commitment to tackling inflation. 16 00:00:56,280 --> 00:00:59,600 Speaker 3: We understand that the five plus years of inflation above 17 00:00:59,640 --> 00:01:05,080 Speaker 3: target cannot be cured in nine weeks or by a 18 00:01:05,120 --> 00:01:10,000 Speaker 3: single month of modest price decreases. This FED will not 19 00:01:10,120 --> 00:01:15,680 Speaker 3: waiver our credibility rests on performing our duties and delivering 20 00:01:15,800 --> 00:01:17,200 Speaker 3: on our responsibilities. 21 00:01:17,520 --> 00:01:20,160 Speaker 2: Meantime, the conflict between the United States and Iran looks 22 00:01:20,160 --> 00:01:22,800 Speaker 2: set to drag on, with the different sides unable to 23 00:01:22,880 --> 00:01:26,240 Speaker 2: break a deadlock over the Strait of Hormuz and reports 24 00:01:26,280 --> 00:01:27,479 Speaker 2: of attacks resuming. 25 00:01:27,720 --> 00:01:30,040 Speaker 4: Plus, it was a big week for big Tech, including 26 00:01:30,080 --> 00:01:32,679 Speaker 4: earnings from four of the mag seven, all with trillion 27 00:01:32,720 --> 00:01:35,760 Speaker 4: dollar plus valuations and all closely watched for the AI 28 00:01:35,840 --> 00:01:38,640 Speaker 4: trade and spend. On top of that, we also had 29 00:01:38,640 --> 00:01:42,280 Speaker 4: an IPO with Jersey Mikes making its trading debut on Thursday. 30 00:01:42,720 --> 00:01:44,959 Speaker 4: So yes, a busy summer week to wrap up the 31 00:01:45,040 --> 00:01:45,680 Speaker 4: month of July. 32 00:01:45,959 --> 00:01:49,760 Speaker 2: Plus how Crypto is rewiring financial infrastructure from our Bloomberg 33 00:01:49,800 --> 00:01:53,280 Speaker 2: intelligence analyst who argues that the pipes underneath finance are 34 00:01:53,320 --> 00:01:56,120 Speaker 2: being rebuilt for the first time in about forty years. 35 00:01:56,120 --> 00:01:58,279 Speaker 2: That analyst joining us a little later on. 36 00:01:58,760 --> 00:02:02,440 Speaker 4: And from maybe some digital vaults that hold cryptos to 37 00:02:02,520 --> 00:02:06,400 Speaker 4: some physical sellers that hold real bottles of wine. Love 38 00:02:06,480 --> 00:02:09,920 Speaker 4: that we sit down with Claudia Chamberlain, Advanced Sammilier and 39 00:02:10,080 --> 00:02:12,919 Speaker 4: us general manager at the Wine and Spirits Merchant Barry 40 00:02:12,960 --> 00:02:15,760 Speaker 4: Brothers and Rudd on the emerging role of the luxury 41 00:02:15,800 --> 00:02:18,959 Speaker 4: advisor in fine wine investment, and collecting. 42 00:02:19,280 --> 00:02:22,320 Speaker 2: All that to come. But first, more from Wednesday's FED decision. 43 00:02:22,600 --> 00:02:25,000 Speaker 2: The message from the bond market was pretty clear. For 44 00:02:25,080 --> 00:02:27,960 Speaker 2: all of Federal Reserve Chairman Kevin Walsh's tough talk about 45 00:02:27,960 --> 00:02:31,880 Speaker 2: taming inflation, he is not rushing fast enough to deliver. 46 00:02:32,240 --> 00:02:34,960 Speaker 2: What he did deliver in his press conference was a 47 00:02:34,960 --> 00:02:37,040 Speaker 2: lot of wealth. Here's more from the FED chair. 48 00:02:37,400 --> 00:02:42,359 Speaker 3: Nominal and real yields are materially higher across the treasury curve. 49 00:02:43,520 --> 00:02:46,680 Speaker 3: In fact, some of the increases in market interest rates 50 00:02:47,160 --> 00:02:51,560 Speaker 3: between FMC meetings are among the most significant in the 51 00:02:51,639 --> 00:02:55,600 Speaker 3: last two decades. We need to observe market reaction to developments, 52 00:02:56,080 --> 00:03:02,520 Speaker 3: direct and unfiltered. I want to, of course, the decisions 53 00:03:02,560 --> 00:03:06,919 Speaker 3: by this committee matter a great deal, and we're necessary 54 00:03:07,000 --> 00:03:11,880 Speaker 3: and appropriate. We will not hesitate to act. Monetary policy 55 00:03:12,040 --> 00:03:15,840 Speaker 3: matters not just by what we say or even what 56 00:03:15,880 --> 00:03:19,760 Speaker 3: we do. Monetary policy matters by how it affects the 57 00:03:19,800 --> 00:03:23,880 Speaker 3: real economy. And these prices that we see in financial 58 00:03:23,919 --> 00:03:26,359 Speaker 3: markets is one of the many ways in what it 59 00:03:26,560 --> 00:03:30,359 Speaker 3: affects the real economy. Yeah, so I'm gonna I'll let 60 00:03:30,360 --> 00:03:34,880 Speaker 3: the dissenters speak for themselves. The way I heard it 61 00:03:34,960 --> 00:03:39,880 Speaker 3: over the last two days was overwhelming agreement on objectives 62 00:03:39,920 --> 00:03:41,920 Speaker 3: and authority and commitment. 63 00:03:42,160 --> 00:03:43,920 Speaker 2: All right, that, of course is bet youre Kevin Warsh 64 00:03:43,920 --> 00:03:46,520 Speaker 2: at the FED. Monetary policy matters not just by what 65 00:03:46,560 --> 00:03:48,400 Speaker 2: we say or even what we do. So what did 66 00:03:48,400 --> 00:03:48,760 Speaker 2: he say? 67 00:03:48,800 --> 00:03:49,440 Speaker 1: What did he do? 68 00:03:50,080 --> 00:03:51,560 Speaker 2: That's what we want to kind of get to Let's 69 00:03:51,600 --> 00:03:54,440 Speaker 2: get to it with Stuart Paul. He's Bloomberg Economics US 70 00:03:54,440 --> 00:03:57,200 Speaker 2: and Canada economist on set with us right here at 71 00:03:57,240 --> 00:04:00,080 Speaker 2: Bloomberg headquarters in New York City, our Jersey at there 72 00:04:00,120 --> 00:04:03,320 Speaker 2: at our Bloomberg Princeton Bureau, Bloomberg Intelligence chief US interest 73 00:04:03,400 --> 00:04:06,760 Speaker 2: rate strategists. So, Stuart Aira, I put this pose, this 74 00:04:06,840 --> 00:04:10,520 Speaker 2: question to you both. Are we overreacting? Reacting? Is this 75 00:04:10,600 --> 00:04:13,600 Speaker 2: a new version of Greenspan speak? We know the iconic 76 00:04:13,640 --> 00:04:19,040 Speaker 2: FED share. He often intentionally used vague, highly technical, ambiguous 77 00:04:19,120 --> 00:04:22,880 Speaker 2: language when talking about or asked about monetary policy, and 78 00:04:22,920 --> 00:04:25,280 Speaker 2: you had to read between the lines. So is this, 79 00:04:25,920 --> 00:04:28,520 Speaker 2: let me start with you, Stuart, Kevin Warsh doing the 80 00:04:28,520 --> 00:04:29,919 Speaker 2: same thing or is he just kind of new on 81 00:04:30,000 --> 00:04:31,119 Speaker 2: the job finding his way. 82 00:04:31,320 --> 00:04:33,160 Speaker 5: I think that it's an attempt at the same thing. 83 00:04:33,200 --> 00:04:35,800 Speaker 5: I think that Kevin Worsh's attempt to use abstraction or 84 00:04:35,839 --> 00:04:41,520 Speaker 5: obfuscation is intended to provide less guidance to financial markets 85 00:04:41,520 --> 00:04:44,800 Speaker 5: and to market participants. But we live in a materially 86 00:04:44,800 --> 00:04:46,960 Speaker 5: different world than we did twenty years ago, and Alan 87 00:04:47,040 --> 00:04:50,159 Speaker 5: greenspand would do the same thing. Market participants are used 88 00:04:50,200 --> 00:04:53,320 Speaker 5: to guidance, for one, and we are also in a 89 00:04:53,320 --> 00:04:56,120 Speaker 5: period where we're trying to understand the federal reserves reaction 90 00:04:56,320 --> 00:04:59,840 Speaker 5: function separate apart from the verbal guidance that's being given. 91 00:05:00,120 --> 00:05:02,080 Speaker 5: So I think that the different world that we live 92 00:05:02,080 --> 00:05:07,080 Speaker 5: in actually makes it almost impossible for Kevin Worsh to 93 00:05:07,120 --> 00:05:11,400 Speaker 5: pull off a good Alan Greenspan impression. I also think 94 00:05:11,480 --> 00:05:15,039 Speaker 5: that the abstraction and obfuscation is an attempt to basically 95 00:05:15,160 --> 00:05:17,760 Speaker 5: kick the can down the road a little bit, And 96 00:05:18,800 --> 00:05:21,520 Speaker 5: when you see market pricing starting to get ahead of 97 00:05:21,520 --> 00:05:25,520 Speaker 5: the Fed, it actually makes it. It's, you know, him 98 00:05:25,520 --> 00:05:27,560 Speaker 5: failing to do his job. If his attempt is to 99 00:05:27,560 --> 00:05:30,039 Speaker 5: buy additional time by kicking the can down the road. 100 00:05:30,360 --> 00:05:34,279 Speaker 5: If failure to provide guidance ends up resulting any sort 101 00:05:34,320 --> 00:05:36,560 Speaker 5: of additional market pricing, that will end up getting a 102 00:05:36,640 --> 00:05:39,279 Speaker 5: rate hike, let's say in September, then he's not achieving 103 00:05:39,320 --> 00:05:40,839 Speaker 5: the goal of kicking the can down the road. 104 00:05:41,080 --> 00:05:43,360 Speaker 4: We're gonna bring you in just a second, but I 105 00:05:43,400 --> 00:05:45,120 Speaker 4: want to just pull on this thread a little bit. 106 00:05:45,160 --> 00:05:46,960 Speaker 4: Why is he kicking the can? Which can is he 107 00:05:47,040 --> 00:05:48,240 Speaker 4: kicking down the road? And why do you think he's 108 00:05:48,279 --> 00:05:48,640 Speaker 4: killing this? 109 00:05:49,040 --> 00:05:51,120 Speaker 5: To go back to the to go back to the 110 00:05:51,120 --> 00:05:53,800 Speaker 5: Alan greenspan analogy. One thing that we know that Kevin 111 00:05:53,800 --> 00:05:57,880 Speaker 5: worsh is indexing on is the potential for AI to 112 00:05:58,000 --> 00:06:01,440 Speaker 5: produce a lot of productivity, gains inditional supply capacity that 113 00:06:01,480 --> 00:06:04,599 Speaker 5: would result in disinflation, and that would make a rate 114 00:06:04,680 --> 00:06:09,120 Speaker 5: hike today a policy misstep. I think that he's trying 115 00:06:09,160 --> 00:06:12,560 Speaker 5: to draw a similar comparison to his circumstances today to 116 00:06:12,600 --> 00:06:15,120 Speaker 5: what Alan Greenspand was doing in the nineties, And so 117 00:06:15,240 --> 00:06:17,839 Speaker 5: by buying some time before he has to make any 118 00:06:17,880 --> 00:06:23,919 Speaker 5: decision on policy rates, he's essentially trying to This is 119 00:06:23,960 --> 00:06:26,839 Speaker 5: the cancacking exercise. He's trying to buy that time to 120 00:06:26,880 --> 00:06:29,320 Speaker 5: avoid the potential for a policy misstep by moving too 121 00:06:29,400 --> 00:06:30,239 Speaker 5: soon in any of the direction. 122 00:06:30,320 --> 00:06:33,239 Speaker 2: Right now, wise man would say, is he right? Which 123 00:06:33,279 --> 00:06:35,839 Speaker 2: is something I often hear in my life from various 124 00:06:35,880 --> 00:06:39,560 Speaker 2: people in my circle in world, you're right about everything. 125 00:06:40,120 --> 00:06:40,599 Speaker 2: It's not me. 126 00:06:40,760 --> 00:06:41,279 Speaker 1: It's not me. 127 00:06:41,680 --> 00:06:44,560 Speaker 2: Hey, Iraic, come on in on this same question to you. 128 00:06:44,760 --> 00:06:46,720 Speaker 2: Is it Alan Greenspan two point zero or is he 129 00:06:46,800 --> 00:06:48,839 Speaker 2: just figuring things out? Or do you kind of agree 130 00:06:48,880 --> 00:06:51,680 Speaker 2: with what we just got from Stewart Well. 131 00:06:52,120 --> 00:06:54,599 Speaker 6: I think he is trying to bring things back to 132 00:06:54,760 --> 00:06:58,320 Speaker 6: the pre global financial crisis communications period, and I mean 133 00:06:58,320 --> 00:07:01,680 Speaker 6: you've seen that very clearly in the last two statements, 134 00:07:01,880 --> 00:07:04,280 Speaker 6: where you have one hundred and fifteen words compared to 135 00:07:04,360 --> 00:07:06,560 Speaker 6: the eight hundred words that we had in twenty fourteen. 136 00:07:06,960 --> 00:07:11,600 Speaker 6: In the post meeting statement. I think that the market's 137 00:07:11,640 --> 00:07:13,480 Speaker 6: not going to like what Kevin Watsh is trying to do, 138 00:07:13,560 --> 00:07:17,160 Speaker 6: and not because it doesn't provide but mostly because it 139 00:07:17,160 --> 00:07:20,320 Speaker 6: doesn't provide any information at all. Right, So one why 140 00:07:20,320 --> 00:07:22,680 Speaker 6: bother having the press conference? He said that the reason 141 00:07:22,800 --> 00:07:24,800 Speaker 6: they're doing it is because they promised to do it. 142 00:07:25,720 --> 00:07:27,640 Speaker 6: He could have just made a statement and said I'm 143 00:07:27,640 --> 00:07:29,720 Speaker 6: not taking any questions and walked away. That might have 144 00:07:30,320 --> 00:07:33,040 Speaker 6: helped him his cause at least a little bit. And 145 00:07:33,080 --> 00:07:35,360 Speaker 6: the market's not very trusting of him right now. And 146 00:07:35,760 --> 00:07:37,880 Speaker 6: in order to get that trust back, he is going 147 00:07:37,920 --> 00:07:41,400 Speaker 6: to have to kind of live up to there, to 148 00:07:41,520 --> 00:07:43,680 Speaker 6: what they've been saying, and he said we want to 149 00:07:43,680 --> 00:07:46,560 Speaker 6: fight inflation. Well to the market that's saying, okay, well, 150 00:07:46,560 --> 00:07:48,720 Speaker 6: if you're fighting inflation, that means you have to increase 151 00:07:48,760 --> 00:07:52,040 Speaker 6: interest rates. If they don't increase interest rates and you 152 00:07:52,120 --> 00:07:55,760 Speaker 6: still have three plus percent year on year PCE over 153 00:07:55,800 --> 00:07:57,800 Speaker 6: the next couple of months, the market's not going to 154 00:07:57,880 --> 00:07:59,080 Speaker 6: like that, and you're going to see more of what 155 00:07:59,120 --> 00:08:01,800 Speaker 6: you saw yesterday, see higher yields in the long end 156 00:08:02,200 --> 00:08:04,240 Speaker 6: because there's going to be a lack of trust in 157 00:08:04,280 --> 00:08:05,000 Speaker 6: the central Bank. 158 00:08:05,120 --> 00:08:07,760 Speaker 4: How high could that yield on the long end get, IIRA. 159 00:08:08,960 --> 00:08:11,440 Speaker 6: Well, so it'll be difficult for it, I think, to 160 00:08:11,480 --> 00:08:13,440 Speaker 6: break around five and a half percent, but that would 161 00:08:13,480 --> 00:08:16,320 Speaker 6: still be you know, the highest level in almost two decades. 162 00:08:16,440 --> 00:08:16,640 Speaker 4: Right. 163 00:08:17,120 --> 00:08:20,640 Speaker 6: So that is a scenario where you have all of 164 00:08:20,640 --> 00:08:24,080 Speaker 6: these AI hyperscalers and just about everyone who issues long 165 00:08:24,160 --> 00:08:26,880 Speaker 6: term debt is going to find it harder to borrow 166 00:08:27,080 --> 00:08:29,440 Speaker 6: or at least more expensive to borrow right now. Whether 167 00:08:29,520 --> 00:08:32,200 Speaker 6: or not they're immune to higher interest rates or not, 168 00:08:32,480 --> 00:08:35,160 Speaker 6: I think is you have to be seen. But if 169 00:08:35,200 --> 00:08:37,280 Speaker 6: presumably if the long end goes up to five and 170 00:08:37,280 --> 00:08:39,080 Speaker 6: a half percent, you're probably going to get close to 171 00:08:39,120 --> 00:08:42,000 Speaker 6: five percent on the ten year, which means you're going 172 00:08:42,040 --> 00:08:43,840 Speaker 6: to have much higher mortgage rates. Right, So you're going 173 00:08:43,880 --> 00:08:46,320 Speaker 6: to wind up with probably a slowing in the mortgage 174 00:08:46,360 --> 00:08:49,600 Speaker 6: market and the housing market in general, and it will 175 00:08:49,600 --> 00:08:52,360 Speaker 6: filter through to just about everything throughout the economy. 176 00:08:52,440 --> 00:08:54,720 Speaker 2: Right, US mortgage rates already rising to a twelve month 177 00:08:54,800 --> 00:08:58,400 Speaker 2: high amid you know, some of the fighting in Iran, 178 00:08:58,960 --> 00:09:01,520 Speaker 2: you know, feeling concerned about higher inflation, but it's just 179 00:09:01,679 --> 00:09:04,160 Speaker 2: kind of the general macro there on that Stewart. 180 00:09:04,000 --> 00:09:07,240 Speaker 4: Is there a real case to be made that it's 181 00:09:07,520 --> 00:09:09,679 Speaker 4: not really within the Fed's remit to communicate with us 182 00:09:09,679 --> 00:09:12,120 Speaker 4: at all? I mean, this is an organization that is 183 00:09:12,160 --> 00:09:16,800 Speaker 4: responsible for two things, maximum employment and stable prices, not 184 00:09:17,160 --> 00:09:20,040 Speaker 4: explaining itself to us, you know, eight times a year. 185 00:09:20,920 --> 00:09:25,880 Speaker 5: It's certainly not obligated to explain itself the way that 186 00:09:25,920 --> 00:09:28,559 Speaker 5: it has been, and certainly not obligated to bride guidance 187 00:09:28,600 --> 00:09:33,040 Speaker 5: to the extented guidance is useful in achieving those two objectives, 188 00:09:33,080 --> 00:09:35,439 Speaker 5: price stability and maximum employment. 189 00:09:36,240 --> 00:09:39,480 Speaker 7: I think that and it's worked, right, has FED speak 190 00:09:39,559 --> 00:09:43,320 Speaker 7: kind of like so much recent history, well, just FED 191 00:09:43,360 --> 00:09:46,400 Speaker 7: speakers in general, kind of maneuvering the market. 192 00:09:46,520 --> 00:09:47,040 Speaker 4: They get it. 193 00:09:47,280 --> 00:09:50,240 Speaker 5: Yeah, Look, I think that it has worked. I think 194 00:09:50,240 --> 00:09:52,880 Speaker 5: that communication as a tool is asymmetric. I think that 195 00:09:52,920 --> 00:09:56,640 Speaker 5: it's really valuable when policy rates are low. I think 196 00:09:56,679 --> 00:10:00,080 Speaker 5: that when you have two sided risk and you're trying 197 00:10:00,120 --> 00:10:02,079 Speaker 5: to be really deliberate about which direction you're going to 198 00:10:02,120 --> 00:10:04,120 Speaker 5: move on the policy front, you don't want to bind 199 00:10:04,160 --> 00:10:07,080 Speaker 5: your hands by offering too much guidance if you haven't 200 00:10:07,120 --> 00:10:09,280 Speaker 5: truly made up your mind on what you're going to 201 00:10:09,320 --> 00:10:11,760 Speaker 5: do over the next two years. It's actually it could 202 00:10:11,760 --> 00:10:14,360 Speaker 5: be a little bit detrimental to your own cause to 203 00:10:14,800 --> 00:10:17,160 Speaker 5: offer too much guidance. One thing that I do want 204 00:10:17,200 --> 00:10:19,319 Speaker 5: to circle back to is the point that IRA made earlier, 205 00:10:19,440 --> 00:10:22,480 Speaker 5: which is one that Kevin Walsh also commented on during 206 00:10:22,480 --> 00:10:24,840 Speaker 5: his press conference, which is that if you end up 207 00:10:24,840 --> 00:10:26,839 Speaker 5: seeing selling off on along end of the curve and 208 00:10:26,880 --> 00:10:29,680 Speaker 5: it does ripple through into the real economy, it's almost 209 00:10:29,720 --> 00:10:31,760 Speaker 5: as though markets are doing some of the heavy lifting 210 00:10:31,760 --> 00:10:34,080 Speaker 5: for the FED. But I think that I differ from 211 00:10:34,160 --> 00:10:36,640 Speaker 5: Chairman worsh and maybe a little bit with IRA here too. 212 00:10:37,080 --> 00:10:40,600 Speaker 5: It seems as though over the last over the last 213 00:10:40,640 --> 00:10:45,120 Speaker 5: several years, the real economy has been basically insensitive to 214 00:10:45,160 --> 00:10:49,160 Speaker 5: both policy rates and even too longer term rates. I 215 00:10:49,280 --> 00:10:52,200 Speaker 5: think that where and maybe this is slicing everything just 216 00:10:52,200 --> 00:10:54,520 Speaker 5: a little bit too thin. The thing that I worry 217 00:10:54,520 --> 00:10:59,680 Speaker 5: about is where market volatility starts and deteriorating wealth effects 218 00:11:00,040 --> 00:11:03,040 Speaker 5: actually start weighing on consumer spending. It's really been favorable 219 00:11:03,080 --> 00:11:06,439 Speaker 5: wealth effects that have undergirded consumer spending in the face 220 00:11:06,480 --> 00:11:08,880 Speaker 5: of souring sentiment. I think that if we end up 221 00:11:08,880 --> 00:11:12,000 Speaker 5: seeing that, we end up seeing market volatility in deteriorating 222 00:11:12,000 --> 00:11:15,040 Speaker 5: wealth effects. I think that that, frankly, will matter more 223 00:11:15,320 --> 00:11:16,480 Speaker 5: than selling off in bonds to. 224 00:11:16,480 --> 00:11:16,960 Speaker 1: The long hunt. 225 00:11:17,160 --> 00:11:19,120 Speaker 2: Interesting, Hey guys, what do I want to do? And 226 00:11:19,160 --> 00:11:23,040 Speaker 2: Irack Common back in here. President Trump shortly after the decision, 227 00:11:23,679 --> 00:11:26,400 Speaker 2: you know, made some comments about he's a brilliant guy, 228 00:11:26,520 --> 00:11:29,959 Speaker 2: meaning Kevin Warsh he was in the Oval office. He goes, 229 00:11:30,000 --> 00:11:32,880 Speaker 2: I know, he'd love to actually see lower regist rates. 230 00:11:32,920 --> 00:11:34,719 Speaker 2: He's got a board, it's a political board. They want 231 00:11:34,720 --> 00:11:37,800 Speaker 2: to keep rates up, but we fight through rate Is 232 00:11:37,880 --> 00:11:40,760 Speaker 2: this in your view? Do markets think this is an 233 00:11:40,880 --> 00:11:42,120 Speaker 2: independent fed share? 234 00:11:43,960 --> 00:11:46,320 Speaker 6: So well, we have you know, I talk to a 235 00:11:46,320 --> 00:11:48,560 Speaker 6: lot of investors every day. We have, you know, several 236 00:11:48,800 --> 00:11:52,000 Speaker 6: thousand that we interact with on the Bloomberg terminal on 237 00:11:52,040 --> 00:11:52,880 Speaker 6: a regular basis. 238 00:11:52,880 --> 00:11:54,640 Speaker 4: And one of the one. 239 00:11:54,520 --> 00:11:56,320 Speaker 6: Of the things that people said was that there is 240 00:11:56,679 --> 00:11:59,680 Speaker 6: a large swath of investors who worry that Warsh is 241 00:11:59,720 --> 00:12:03,600 Speaker 6: not uh, you know, is in the is an accolade 242 00:12:03,600 --> 00:12:06,120 Speaker 6: of Trump, right, and that basically he wants the lower 243 00:12:06,160 --> 00:12:08,200 Speaker 6: interest rates, but he can't because of the committee. So, 244 00:12:08,679 --> 00:12:11,120 Speaker 6: you know, what President Trump said yesterday is not a surprise, 245 00:12:11,200 --> 00:12:13,839 Speaker 6: and I think it didn't really surprise many of us 246 00:12:13,920 --> 00:12:16,160 Speaker 6: that you know, Warsh maybe wants to keep rates where 247 00:12:16,160 --> 00:12:19,080 Speaker 6: they are or ease them, but there's a huge part 248 00:12:19,120 --> 00:12:21,439 Speaker 6: of number of uh, you know, swath of people on 249 00:12:21,480 --> 00:12:24,480 Speaker 6: the board that don't want to move the UH don't 250 00:12:24,480 --> 00:12:26,440 Speaker 6: want to move interest rates or want to increase them. 251 00:12:26,520 --> 00:12:30,280 Speaker 4: That's Stuart Paul, Bloomberg Economics US and Canada economist and 252 00:12:30,360 --> 00:12:34,040 Speaker 4: Ira Jersey, Bloomberg Intelligence Chief US interest rates strategist. 253 00:12:34,200 --> 00:12:38,280 Speaker 2: You're listening to Bloomberg BusinessWeek. Coming up, tokenization, crypto digital 254 00:12:38,320 --> 00:12:43,600 Speaker 2: assets finance could be moving beyond the industry's experimental phase and. 255 00:12:43,520 --> 00:12:47,360 Speaker 4: Why now TRADFI or traditional finance. That's cool is quietly 256 00:12:47,400 --> 00:12:50,520 Speaker 4: adopting the very tech built to disrupt it. That's next. 257 00:12:50,840 --> 00:12:51,960 Speaker 4: This is Bloomberg. 258 00:12:55,840 --> 00:13:00,040 Speaker 6: This is Bloomberg Business Week Daily with Carol Masser and 259 00:13:00,120 --> 00:13:02,360 Speaker 6: Tim Steneveek on Bloomberg Radio. 260 00:13:03,960 --> 00:13:07,400 Speaker 4: Digital asset finances moving beyond the industry's experimental phase as 261 00:13:07,400 --> 00:13:10,840 Speaker 4: Wall Street's largest trading firms deepen their ties with crypto companies. 262 00:13:11,360 --> 00:13:14,240 Speaker 4: Citadel Securities agreement last month to anus four hundred million 263 00:13:14,280 --> 00:13:17,640 Speaker 4: dollars in crypto dot Com reflects that shift. The all 264 00:13:17,679 --> 00:13:20,959 Speaker 4: equity investment valued the exchange at about twenty billion dollars, 265 00:13:21,280 --> 00:13:24,520 Speaker 4: effectively matching the valuation crack And received last year. 266 00:13:24,720 --> 00:13:27,400 Speaker 2: And Tim, you know what, It's not just Citadel's securities. 267 00:13:27,600 --> 00:13:30,560 Speaker 2: It is part of a broader push by established financial 268 00:13:30,600 --> 00:13:35,600 Speaker 2: firms to tap into crypto infrastructure. Intercontinental Exchange, which of 269 00:13:35,640 --> 00:13:38,560 Speaker 2: course owns the New York Stock Exchange, has invested one 270 00:13:38,600 --> 00:13:42,840 Speaker 2: point six billion dollars in blockchain based prediction market platform Polymarket. 271 00:13:43,200 --> 00:13:46,560 Speaker 2: It's also taken a stake in crypto exchange OKX, and 272 00:13:46,679 --> 00:13:50,840 Speaker 2: Nasdaq invested fifty million dollars in Gemini Space Station, alongside 273 00:13:50,840 --> 00:13:54,880 Speaker 2: a commercial partnership giving its clients access to the exchange's 274 00:13:54,880 --> 00:13:56,679 Speaker 2: custody and staking services. 275 00:13:57,120 --> 00:14:00,040 Speaker 4: Duschant Sharawatt, also known as Dee, says all of this 276 00:14:00,240 --> 00:14:03,720 Speaker 4: makes sense. He's Bloomberg Intelligence crypto and digital assets analysts, 277 00:14:03,720 --> 00:14:06,080 Speaker 4: and he argues that what we're seeing right now is 278 00:14:06,120 --> 00:14:09,800 Speaker 4: the rewiring of financial infrastructure thanks to crypto. And one 279 00:14:09,800 --> 00:14:11,600 Speaker 4: of the reasons I wanted him to come on with you, Carol, 280 00:14:11,920 --> 00:14:14,160 Speaker 4: is because you talk about this all the time, about 281 00:14:14,160 --> 00:14:18,320 Speaker 4: the difference between the technology and the actual cryptocurrencies. Yeah, 282 00:14:18,360 --> 00:14:20,280 Speaker 4: and what is here to stay? Yeah, when it comes 283 00:14:20,280 --> 00:14:22,320 Speaker 4: to the crypto part of the conversation, that's where I 284 00:14:22,360 --> 00:14:24,760 Speaker 4: want to start. De Sean, It's good to have you 285 00:14:24,800 --> 00:14:26,560 Speaker 4: on the program. Everybody calls you T We're going to 286 00:14:26,600 --> 00:14:29,760 Speaker 4: call you d. I want to start with what Carol 287 00:14:29,760 --> 00:14:31,400 Speaker 4: brings up all the time, and it's this idea of 288 00:14:31,400 --> 00:14:34,800 Speaker 4: technology and when we talk about crypto on our program, 289 00:14:34,920 --> 00:14:36,560 Speaker 4: a lot of time we're focused on, like you know, 290 00:14:36,960 --> 00:14:39,440 Speaker 4: price action, what goes up, what goes down, how big 291 00:14:39,480 --> 00:14:42,160 Speaker 4: the moves are. You and I have had many conversations 292 00:14:42,200 --> 00:14:46,120 Speaker 4: about the underlying technology and what this is bringing to 293 00:14:46,600 --> 00:14:50,120 Speaker 4: financial innovation in the financial ecosystem. You think it's here 294 00:14:50,120 --> 00:14:55,040 Speaker 4: to stay what's the it the it is the underlying 295 00:14:55,680 --> 00:15:02,040 Speaker 4: technology that cryptocurrency brought, tokenization, blockchain, stable coins. 296 00:15:02,480 --> 00:15:05,400 Speaker 8: Absolutely, tim I mean twenty six years. Most of my 297 00:15:05,480 --> 00:15:08,920 Speaker 8: career has been an intersection of technology, infinite and finance. 298 00:15:09,480 --> 00:15:11,600 Speaker 8: And if I can break it up and broad a 299 00:15:11,680 --> 00:15:14,960 Speaker 8: context of what's going on over decades, think about the 300 00:15:15,040 --> 00:15:17,760 Speaker 8: late nineties the Internet. What did that change in finance? 301 00:15:18,120 --> 00:15:21,280 Speaker 8: It changed the way we the UIUX. It put yellow 302 00:15:21,280 --> 00:15:25,040 Speaker 8: pages online. It brought the financial advisor, you pick up 303 00:15:25,040 --> 00:15:27,680 Speaker 8: the phone in place the trade. It brought it online. Right, 304 00:15:27,840 --> 00:15:31,360 Speaker 8: That was the first wave. Second wave was mobile and cloud, 305 00:15:31,520 --> 00:15:34,320 Speaker 8: which was about fifteen years ago, which basically changed the 306 00:15:34,320 --> 00:15:39,000 Speaker 8: way we distributed financial products. This is different because this 307 00:15:39,120 --> 00:15:41,440 Speaker 8: is building on top of that, but even monumentally more 308 00:15:41,480 --> 00:15:44,800 Speaker 8: important because it promises has the potential to change the 309 00:15:44,800 --> 00:15:50,040 Speaker 8: way financial products are manufactured. That is the transformational change. 310 00:15:50,080 --> 00:15:50,880 Speaker 2: What does that mean? 311 00:15:51,040 --> 00:15:52,720 Speaker 8: What does that mean? Basically is that if you think 312 00:15:52,720 --> 00:15:54,840 Speaker 8: about the last one hundred years, last fifty years of 313 00:15:54,840 --> 00:15:58,520 Speaker 8: financial services, whether it's let's keep it simple, their full 314 00:15:58,560 --> 00:16:04,280 Speaker 8: major basic functions we have in finance payments, borrowing and lending, investing, 315 00:16:04,400 --> 00:16:07,400 Speaker 8: and insurance. Those are the four basic activities we do. 316 00:16:07,840 --> 00:16:10,960 Speaker 8: Everything else is mumbo jumbo. On top of that, those 317 00:16:11,000 --> 00:16:13,200 Speaker 8: four activities when you think about the structure of how 318 00:16:13,240 --> 00:16:18,280 Speaker 8: those activities are, you know, executed, are heavily intimidiary driven. 319 00:16:18,560 --> 00:16:22,840 Speaker 8: Their intermediaries is standing your stock exchange for a securities trade, 320 00:16:23,520 --> 00:16:27,600 Speaker 8: Bank of America for a payments transaction, That intimidiary driven 321 00:16:27,680 --> 00:16:31,960 Speaker 8: model is potentially could be upended by this blockchat. 322 00:16:31,640 --> 00:16:35,560 Speaker 4: Intermedia intermediaries provide a very important service for us. 323 00:16:35,640 --> 00:16:39,119 Speaker 8: Absolutely, and that is the thing to do with trust, Absolutely, 324 00:16:39,120 --> 00:16:40,680 Speaker 8: Tim Man. This is the crux of it that too 325 00:16:40,680 --> 00:16:43,160 Speaker 8: many we are a we are in a phase in 326 00:16:43,200 --> 00:16:48,000 Speaker 8: the industry where we can have software eventually replacing some 327 00:16:48,160 --> 00:16:51,880 Speaker 8: of what trust was provided by intermediaries. Think about it, 328 00:16:52,000 --> 00:16:54,560 Speaker 8: like you, you're getting into a way more car, trusting 329 00:16:54,560 --> 00:16:58,520 Speaker 8: your life with software that's driving you. There's no driver 330 00:16:58,640 --> 00:16:59,040 Speaker 8: sitting in the. 331 00:16:59,040 --> 00:17:01,400 Speaker 2: Seat, thank god, totally all in. 332 00:17:01,520 --> 00:17:03,120 Speaker 8: But it took a while for us to get over 333 00:17:03,160 --> 00:17:03,560 Speaker 8: that hump. 334 00:17:03,680 --> 00:17:05,080 Speaker 2: Took me thirty seconds. 335 00:17:05,640 --> 00:17:08,360 Speaker 8: That's crazy, Caryl, you're ahead of the curve. But that's 336 00:17:08,359 --> 00:17:11,840 Speaker 8: what's happening in finance. That absolutely, Tim. I'm not saying 337 00:17:11,880 --> 00:17:14,080 Speaker 8: that bad things are not going to happen when we 338 00:17:14,160 --> 00:17:17,280 Speaker 8: hand over the driver's seat to software. It's going to 339 00:17:17,280 --> 00:17:19,879 Speaker 8: happen in finance too. We are not going back. 340 00:17:20,160 --> 00:17:24,000 Speaker 2: Well, bad things happen to with bodies that we trust 341 00:17:24,480 --> 00:17:27,920 Speaker 2: and pay fees to, and there's regulatory oversight, and bad 342 00:17:27,920 --> 00:17:28,400 Speaker 2: things happen. 343 00:17:28,440 --> 00:17:28,880 Speaker 9: Absolutely. 344 00:17:28,960 --> 00:17:30,560 Speaker 2: Dare I say the Great Financial crisis? 345 00:17:30,600 --> 00:17:32,640 Speaker 8: Absolutely so? 346 00:17:33,080 --> 00:17:38,159 Speaker 2: Puh So how does it happen? Is it gradual? I 347 00:17:38,160 --> 00:17:40,520 Speaker 2: mean it has been gradual. Is it gradual? 348 00:17:41,000 --> 00:17:43,199 Speaker 8: It's not gradual. Actually, if you think about and I 349 00:17:43,280 --> 00:17:44,840 Speaker 8: just want to be clear that you're not just talking 350 00:17:44,840 --> 00:17:49,000 Speaker 8: about blockchain, because I don't want to be yet another 351 00:17:49,040 --> 00:17:53,200 Speaker 8: person coming on think just you know, spousing blockchain watch. 352 00:17:53,920 --> 00:17:55,840 Speaker 8: Blockchain is one part of it, but there's a whole 353 00:17:55,880 --> 00:17:58,879 Speaker 8: lot of other stuff that's happening. Is general, technology is 354 00:17:58,920 --> 00:18:02,359 Speaker 8: reached a point where, you know, waves of technology happen. 355 00:18:02,520 --> 00:18:04,639 Speaker 8: This is the next wave. Blockchain is a very important 356 00:18:04,680 --> 00:18:07,119 Speaker 8: element off it, and it's most relevant to us in 357 00:18:07,160 --> 00:18:12,280 Speaker 8: financial services. But it is when blockchain allows products to 358 00:18:12,320 --> 00:18:15,199 Speaker 8: be structured differently than they have in the past, and 359 00:18:15,240 --> 00:18:18,119 Speaker 8: that basically means I'll make it rail for us. You know, 360 00:18:18,160 --> 00:18:20,760 Speaker 8: when you think about traditional financial products, they were stuck 361 00:18:20,840 --> 00:18:23,520 Speaker 8: in boxes with intimidiary so you could do only do 362 00:18:23,680 --> 00:18:25,720 Speaker 8: so many things with it. If you were to roll 363 00:18:25,720 --> 00:18:28,280 Speaker 8: out a new derivative contract, you had to go to 364 00:18:28,320 --> 00:18:32,520 Speaker 8: a CME. Right, we just had perpetual futures, this esoteric 365 00:18:32,560 --> 00:18:36,600 Speaker 8: derivaive instrument that's finally come on shore. Eighty percent of 366 00:18:36,640 --> 00:18:40,680 Speaker 8: world crypto activity is happening in perpetual futures that were 367 00:18:40,840 --> 00:18:44,240 Speaker 8: outlawed till about six weeks ago. So we are the 368 00:18:44,240 --> 00:18:46,040 Speaker 8: rest of the world is not waiting for us to 369 00:18:46,119 --> 00:18:48,480 Speaker 8: catch up, right, So the rest of the world is 370 00:18:48,520 --> 00:18:50,800 Speaker 8: moving on. Rest of the world is using stable coins 371 00:18:50,800 --> 00:18:53,400 Speaker 8: to transfer payments. If you look at what stable coins 372 00:18:53,440 --> 00:18:55,360 Speaker 8: has done, that's something you can all relate to. Who 373 00:18:55,359 --> 00:18:57,600 Speaker 8: can argue with the fact that, you know, do you 374 00:18:57,640 --> 00:18:59,560 Speaker 8: want to write a check or send money through venlo 375 00:19:00,080 --> 00:19:04,119 Speaker 8: international cross border transfers three days fifty dollars? Stable coins 376 00:19:04,160 --> 00:19:05,720 Speaker 8: instantaneous pennies. 377 00:19:05,760 --> 00:19:07,919 Speaker 4: So then who gets disrupted in this world that you 378 00:19:08,000 --> 00:19:09,600 Speaker 4: envision is it Western Union? 379 00:19:11,000 --> 00:19:13,120 Speaker 8: Ironically, if you look at what Western Union is doing, 380 00:19:13,119 --> 00:19:15,400 Speaker 8: they're rolling out their own stable coin and they're coming 381 00:19:15,440 --> 00:19:16,240 Speaker 8: out of the bank. 382 00:19:16,359 --> 00:19:16,560 Speaker 9: Okay. 383 00:19:16,560 --> 00:19:19,439 Speaker 8: In fact, that's the story here, Tim very importantly that 384 00:19:19,480 --> 00:19:21,280 Speaker 8: the first wave two years ago, I was sitting here. 385 00:19:21,400 --> 00:19:24,920 Speaker 8: The discussion was about the insurgents versus incumbents. 386 00:19:24,440 --> 00:19:26,680 Speaker 4: And the incumbents have adopted the insurgent technology. 387 00:19:26,760 --> 00:19:29,120 Speaker 8: Absolutely, look at what's happening. I mean JP Morgan, Chase 388 00:19:29,200 --> 00:19:32,840 Speaker 8: Jamie Dimond ten years ago says bitcoin is a fraud. Right, 389 00:19:32,880 --> 00:19:36,040 Speaker 8: He's never attracted that statement. But as of last check 390 00:19:36,160 --> 00:19:39,639 Speaker 8: Connects as missus, JP Morgan's digital asset platform is processing 391 00:19:39,720 --> 00:19:42,640 Speaker 8: two billion in crossboad of payments every day. 392 00:19:42,840 --> 00:19:45,320 Speaker 2: What does it mean for our everyday life? The guy 393 00:19:45,320 --> 00:19:47,000 Speaker 2: I always joke in you know when we just talked 394 00:19:47,000 --> 00:19:50,440 Speaker 2: about crypto, I have yet to pay my mortgage with cryptocurrencies. 395 00:19:50,480 --> 00:19:54,080 Speaker 2: I don't go buy eggs and milk with cryptocurrencies, So, 396 00:19:54,400 --> 00:19:57,920 Speaker 2: but how does it impact kind of our everyday life, Carol? 397 00:19:57,920 --> 00:20:00,720 Speaker 8: Actually, it's not about cryptocurrencies, cryptocurrenc. He was simply the 398 00:20:00,760 --> 00:20:05,760 Speaker 8: first manifestation or utilization of blockchain. It's about basically using 399 00:20:05,840 --> 00:20:08,880 Speaker 8: software to intermediate between transactions. That's why I went keep 400 00:20:08,880 --> 00:20:12,040 Speaker 8: it simple. I need to pay Tim. In the past, 401 00:20:12,080 --> 00:20:14,760 Speaker 8: I would not pay you directly because there was counterparty exposure, 402 00:20:14,800 --> 00:20:17,520 Speaker 8: the risk that either of us with reneg on that payment. 403 00:20:18,080 --> 00:20:18,919 Speaker 9: So we did that. 404 00:20:18,840 --> 00:20:22,880 Speaker 8: Through Swift for cross border through acch fedwire for domestic. 405 00:20:23,480 --> 00:20:25,680 Speaker 8: The first wave of how that moved was we went 406 00:20:25,720 --> 00:20:29,040 Speaker 8: from that to pay Pal and Venmo ten fifteen twenty 407 00:20:29,119 --> 00:20:32,200 Speaker 8: years ago. This is the next wave of that interaction 408 00:20:33,840 --> 00:20:37,199 Speaker 8: without any intimidated software intermediating between us would mean we 409 00:20:37,280 --> 00:20:40,080 Speaker 8: don't need to have even Venmo to send payments to 410 00:20:40,119 --> 00:20:42,440 Speaker 8: each other. I won't get it to the technical details, 411 00:20:42,480 --> 00:20:45,000 Speaker 8: but it's going to be your software agent interactive with 412 00:20:45,080 --> 00:20:47,679 Speaker 8: mine and neither of us can reneg on that. That 413 00:20:47,720 --> 00:20:49,199 Speaker 8: means technically we don't need an intimidate. 414 00:20:49,320 --> 00:20:52,679 Speaker 2: Then where is the security? Like, do we just have 415 00:20:52,760 --> 00:20:54,360 Speaker 2: to believe the system is secure? 416 00:20:54,600 --> 00:20:57,440 Speaker 8: It's it's software, Carol, I mean, where is the security 417 00:20:57,480 --> 00:20:59,680 Speaker 8: When you sit in a Vemo and expect a software 418 00:21:00,240 --> 00:21:02,840 Speaker 8: age to drive you your kids to some extent, You're 419 00:21:02,880 --> 00:21:05,639 Speaker 8: expecting software is going to work, and software, oftentimes is 420 00:21:05,680 --> 00:21:07,840 Speaker 8: not going to work. It's not infallible. Right, So we 421 00:21:07,920 --> 00:21:11,040 Speaker 8: have we have big structural problems that need to be addressed. 422 00:21:11,280 --> 00:21:14,040 Speaker 8: But what I'm saying is we're not a trajectory that 423 00:21:14,119 --> 00:21:18,359 Speaker 8: I've not seen very often, and it's it's accelerated and 424 00:21:18,400 --> 00:21:21,240 Speaker 8: you can see that in payments beginning to see that 425 00:21:21,280 --> 00:21:24,439 Speaker 8: in security is trading with tokenization. This has got a 426 00:21:24,440 --> 00:21:27,399 Speaker 8: potential to transform the way that industry is structured. And 427 00:21:27,440 --> 00:21:28,280 Speaker 8: who competes with whom? 428 00:21:28,320 --> 00:21:30,280 Speaker 4: I want to talk about totalization in one second, but 429 00:21:30,320 --> 00:21:32,280 Speaker 4: before that, I just want to ask you across your 430 00:21:32,359 --> 00:21:35,679 Speaker 4: universe of companies that you cover, who's who's making this 431 00:21:35,760 --> 00:21:38,400 Speaker 4: transformation the best and who's making it the worst? 432 00:21:39,119 --> 00:21:41,040 Speaker 8: So who's making it the best? Right now? I mean 433 00:21:41,080 --> 00:21:43,600 Speaker 8: I would say DTCC. I mean who would have thought 434 00:21:43,640 --> 00:21:45,840 Speaker 8: two years ago DDCC for a lot of years, may not, 435 00:21:45,960 --> 00:21:48,520 Speaker 8: they may not be familiar with DTCC, but you know 436 00:21:48,560 --> 00:21:52,080 Speaker 8: every single the US equity trade goes through DTCC, fifty 437 00:21:52,160 --> 00:21:54,680 Speaker 8: year old entity trade. You know, they're cleared and settle 438 00:21:54,680 --> 00:21:57,280 Speaker 8: a one hundred and fourteen trillion dollars in assets. That's 439 00:21:57,359 --> 00:22:01,240 Speaker 8: more than World Global gdp CC is on the ball. 440 00:22:01,640 --> 00:22:05,840 Speaker 8: They've actually taken. So each time our schwab a fidelity 441 00:22:05,840 --> 00:22:09,040 Speaker 8: account executes a trade, the clearing and settlement happens to 442 00:22:09,119 --> 00:22:14,040 Speaker 8: this TTCC. GDCC has just put the entire infrastructure on 443 00:22:14,160 --> 00:22:18,919 Speaker 8: a pilot project till October on chain. That means we 444 00:22:19,000 --> 00:22:22,320 Speaker 8: can potentially clear and settle trades, not in one day, 445 00:22:22,320 --> 00:22:23,400 Speaker 8: but instantaneously. 446 00:22:24,200 --> 00:22:24,920 Speaker 4: That's nuts. 447 00:22:25,480 --> 00:22:26,959 Speaker 2: How can we not talk about this company? 448 00:22:28,400 --> 00:22:32,200 Speaker 8: It's the plumbing. It's not exciting enough, Carol. Everybody wants 449 00:22:32,240 --> 00:22:35,080 Speaker 8: to talk about, you know, the front end, consumer facing stuff. 450 00:22:35,240 --> 00:22:36,800 Speaker 8: And here's the iron If you look at the consumer 451 00:22:36,800 --> 00:22:39,960 Speaker 8: facing stuff, why are we Why are financial institutions catching up? 452 00:22:40,600 --> 00:22:43,040 Speaker 8: Because consumers have woken up and said, look, if I 453 00:22:43,080 --> 00:22:45,919 Speaker 8: can send email at any point of time, right, imagine 454 00:22:45,960 --> 00:22:48,000 Speaker 8: if I said you cannot send email after five PM 455 00:22:48,040 --> 00:22:50,480 Speaker 8: and a Friday because the email service shut down, Like 456 00:22:50,520 --> 00:22:54,600 Speaker 8: that's that's unacceptable to you. Right, Crypto has shown us 457 00:22:54,720 --> 00:22:57,159 Speaker 8: no matter, it doesn't matter what we think about crypto. 458 00:22:57,200 --> 00:22:59,000 Speaker 8: The point is it's shown us that you can trade 459 00:22:59,000 --> 00:23:03,040 Speaker 8: an asset to ony for seven instantaneously around the world. 460 00:23:03,200 --> 00:23:07,760 Speaker 2: So crypto showed that as that that's value. But does 461 00:23:07,800 --> 00:23:12,120 Speaker 2: then crypto, let's just go there, does that happen to Yeah? 462 00:23:12,160 --> 00:23:13,040 Speaker 2: Does it have a future? 463 00:23:14,720 --> 00:23:18,200 Speaker 8: Look, I'm not a I cover crypto market structure. I'm 464 00:23:18,200 --> 00:23:21,679 Speaker 8: not a crypto analyst or a crypto zalot by any means. Yeah, 465 00:23:21,960 --> 00:23:24,560 Speaker 8: So the way I if you might, you know, I'll 466 00:23:24,600 --> 00:23:26,600 Speaker 8: share the framework that I look at when I look 467 00:23:26,640 --> 00:23:29,840 Speaker 8: at the space. So we've got this underlying technology, blockchain 468 00:23:29,880 --> 00:23:32,840 Speaker 8: and related technology. The first manifestation of that was these 469 00:23:32,880 --> 00:23:35,439 Speaker 8: crypto tokens. That's what most of us woke up to 470 00:23:35,520 --> 00:23:40,000 Speaker 8: when we thought about, you know, blockchain. Any any interaction 471 00:23:40,119 --> 00:23:43,560 Speaker 8: directly with the tokens is pillar one of that infrastructure. 472 00:23:43,640 --> 00:23:46,640 Speaker 8: Right there's still a lot of activity there. Pillar two 473 00:23:46,720 --> 00:23:48,840 Speaker 8: has nothing to do with the tokens. It's done with 474 00:23:48,880 --> 00:23:54,359 Speaker 8: blockchain technology taking traditional financial activities payments, lending, borrowing, investing, insurance, 475 00:23:54,800 --> 00:23:57,399 Speaker 8: just doing it on faster rails. That's pillar two. That's 476 00:23:57,440 --> 00:24:01,760 Speaker 8: where stable coins toganization fits in. Biller three is the 477 00:24:01,760 --> 00:24:05,560 Speaker 8: wild West, which is what decentralized finance is about. That 478 00:24:05,680 --> 00:24:09,080 Speaker 8: is only in the fringes right now. That's a utopian world. 479 00:24:09,520 --> 00:24:11,679 Speaker 8: It might be realized at some point of time. I 480 00:24:11,680 --> 00:24:13,840 Speaker 8: don't think regulators in the public going to allow that. 481 00:24:13,840 --> 00:24:18,439 Speaker 8: That is no intermediary everything intermediated purely by software, science 482 00:24:18,440 --> 00:24:20,760 Speaker 8: fiction stuff. Some of that is beginning to be real. 483 00:24:20,960 --> 00:24:23,800 Speaker 8: There is a company called hyper Liquid that plays directly 484 00:24:23,920 --> 00:24:26,639 Speaker 8: in that third realm. Today most of the activity is 485 00:24:26,640 --> 00:24:29,520 Speaker 8: in column two. I completely get a lot of people 486 00:24:29,680 --> 00:24:33,000 Speaker 8: to think about all the stuff, say, but what about bitcoin? Yeah, 487 00:24:33,040 --> 00:24:35,520 Speaker 8: and the discussion is got you know way beyond that. 488 00:24:35,640 --> 00:24:36,359 Speaker 2: I'm not a fan. 489 00:24:37,240 --> 00:24:38,760 Speaker 4: It's people who watch No. 490 00:24:39,680 --> 00:24:42,080 Speaker 2: But I just wonder, then, what is his place or 491 00:24:42,160 --> 00:24:44,280 Speaker 2: is it just useful as showing look what we can 492 00:24:44,359 --> 00:24:46,399 Speaker 2: do and think about how we can apply it elsewhere? 493 00:24:46,440 --> 00:24:48,880 Speaker 8: No, Like I said, I mean who could argue in payments? 494 00:24:48,960 --> 00:24:49,080 Speaker 2: Right? 495 00:24:49,080 --> 00:24:51,440 Speaker 8: Do you want to go through swift and spend three 496 00:24:51,520 --> 00:24:53,520 Speaker 8: days and knowing that you cannot send a transfer over 497 00:24:53,560 --> 00:24:55,080 Speaker 8: the weekend and it cost fifty bucks? 498 00:24:55,320 --> 00:24:59,320 Speaker 4: That was Dushan Sharawatt, Bloomberg Intelligence, Crypto and Digital Assets analyst. 499 00:24:59,480 --> 00:25:03,280 Speaker 2: Still Bloomberg BusinessWeek. Finally it's time for some wine. We 500 00:25:03,359 --> 00:25:07,000 Speaker 2: sit down with Claudia Chamberlain, Advance Somolier and US general 501 00:25:07,040 --> 00:25:09,840 Speaker 2: manager at the Wine and Spirits Merchant Barry Brothers and 502 00:25:09,960 --> 00:25:13,080 Speaker 2: Rudd and the emerging role of the luxury advisor in 503 00:25:13,200 --> 00:25:15,200 Speaker 2: fine wine investment and collection. 504 00:25:16,040 --> 00:25:18,720 Speaker 4: Yes, it's the week, it. 505 00:25:18,600 --> 00:25:21,840 Speaker 2: Says the individual Doesingery Castle took akin. 506 00:25:22,920 --> 00:25:24,480 Speaker 4: You know, people are more fun when you're around the 507 00:25:24,480 --> 00:25:24,919 Speaker 4: mind there. 508 00:25:24,800 --> 00:25:26,840 Speaker 5: Draining about that it must refund you. 509 00:25:28,240 --> 00:25:29,399 Speaker 4: This is Bloomberg. 510 00:25:34,920 --> 00:25:38,560 Speaker 9: Within Bloomberg's Small Business Report, I'm John Tucker to Fidel 511 00:25:38,640 --> 00:25:42,440 Speaker 9: Castro and Cuba's communist delete, private businesses were totems of 512 00:25:42,560 --> 00:25:45,600 Speaker 9: capitalist evil. Now, with the country running out of food 513 00:25:45,640 --> 00:25:48,520 Speaker 9: and fuel, the regime on the brink and anger spreading 514 00:25:48,520 --> 00:25:51,800 Speaker 9: in the streets, is those private businesses that hold the 515 00:25:51,840 --> 00:25:55,719 Speaker 9: key to salvaging what's left of Cuba's economy. Forty one 516 00:25:55,800 --> 00:25:59,120 Speaker 9: year old Wan Carlos Blaine turned a tiny burger operation 517 00:25:59,359 --> 00:26:03,000 Speaker 9: run out of his mother's refrigerator in twenty twelve into 518 00:26:03,040 --> 00:26:06,560 Speaker 9: a thriving enterprise with four fast food shops, too many 519 00:26:06,600 --> 00:26:10,560 Speaker 9: grocery stores and more than one hundred employees. While private 520 00:26:10,680 --> 00:26:14,199 Speaker 9: enterprise remains strictly controlled, there are now more than ninety 521 00:26:14,280 --> 00:26:17,560 Speaker 9: two hundred small and medium businesses in Cuba where the 522 00:26:17,680 --> 00:26:21,399 Speaker 9: US meantime is imposed a de facto energy blockade on Cuba. 523 00:26:21,800 --> 00:26:24,760 Speaker 9: Havana has frustrated the US over a lack of progress 524 00:26:24,760 --> 00:26:27,920 Speaker 9: in opening its economy. And it's in this narrow stretch 525 00:26:28,200 --> 00:26:31,440 Speaker 9: that small business owners now have to navigate. And that's 526 00:26:31,480 --> 00:26:33,680 Speaker 9: the Bloomberg Small Business Report. 527 00:26:34,400 --> 00:26:38,920 Speaker 1: This is Bloomberg Business Weekdaily with Carol Masser and Tim 528 00:26:38,960 --> 00:26:41,360 Speaker 1: Stenevek on Bloomberg Radio. 529 00:26:42,520 --> 00:26:47,200 Speaker 2: This next entity was founded in London, England, family run 530 00:26:47,359 --> 00:26:50,960 Speaker 2: British Wine Inspirit's merchant, So talk about having some history 531 00:26:51,040 --> 00:26:52,920 Speaker 2: and being around for a long time. They have seen, 532 00:26:53,560 --> 00:26:56,040 Speaker 2: to say the least a lot of wine, a lot 533 00:26:56,040 --> 00:26:56,560 Speaker 2: of beverages. 534 00:26:56,560 --> 00:26:59,960 Speaker 4: Probably we're talking about Barry Brothers and Rudd. Claudia Chamberlain 535 00:27:00,119 --> 00:27:03,520 Speaker 4: joins us. Now Advance Somlier and US general manager at 536 00:27:03,560 --> 00:27:08,480 Speaker 4: Barry Brothers in Rudgi joins us from Washington, d C. Claudia, welcome, Welcome. 537 00:27:08,520 --> 00:27:10,119 Speaker 4: Before we get to the wine, give us a little 538 00:27:10,160 --> 00:27:14,040 Speaker 4: history of this establishment that goes back centuries. 539 00:27:14,880 --> 00:27:17,200 Speaker 10: Yes, absolutely, and thank you all so much for having 540 00:27:17,280 --> 00:27:20,399 Speaker 10: me on this fine Friday afternoon. So we are a 541 00:27:20,480 --> 00:27:24,200 Speaker 10: heritage British fine wine and spirits merchant. As you said, 542 00:27:24,240 --> 00:27:26,560 Speaker 10: we've been around since sixteen ninety eight, but we just 543 00:27:26,680 --> 00:27:29,439 Speaker 10: opened our doors in the US this past November. So 544 00:27:29,960 --> 00:27:33,560 Speaker 10: we have a physical store that's at Farragut Square in Washington, DC, 545 00:27:34,080 --> 00:27:36,760 Speaker 10: and then an online service and then we specialize in 546 00:27:36,840 --> 00:27:39,600 Speaker 10: something that we call private client advisory services. 547 00:27:39,960 --> 00:27:43,320 Speaker 2: Well, a couple questions, why the US, Why now? 548 00:27:44,600 --> 00:27:46,240 Speaker 11: Yeah, So I think that's a great question. 549 00:27:46,640 --> 00:27:49,280 Speaker 10: The US has been for the longest time one of 550 00:27:49,280 --> 00:27:51,879 Speaker 10: the biggest consumers in the world, and that data just 551 00:27:51,920 --> 00:27:54,520 Speaker 10: continues to point us in the direction of a lot 552 00:27:54,520 --> 00:27:57,080 Speaker 10: of Americans are really interested in fine wine, and so 553 00:27:57,240 --> 00:28:01,600 Speaker 10: Barry Brothers having been around since the of the sixteen hundreds, 554 00:28:01,720 --> 00:28:05,359 Speaker 10: they have quite a big database of clientele around the world, 555 00:28:05,440 --> 00:28:07,560 Speaker 10: and so they've had a number of American clients for 556 00:28:07,600 --> 00:28:09,800 Speaker 10: a long time, and we decided to make it a 557 00:28:09,800 --> 00:28:12,840 Speaker 10: bit easier to access the services by opening up our 558 00:28:12,880 --> 00:28:14,200 Speaker 10: doors in the US. 559 00:28:14,280 --> 00:28:16,840 Speaker 4: So for people listening right now who may not consider 560 00:28:17,160 --> 00:28:20,280 Speaker 4: fine wine an alternative asset class yet at this point 561 00:28:20,440 --> 00:28:24,160 Speaker 4: in their financial journey. The folks who you advise when 562 00:28:24,200 --> 00:28:27,119 Speaker 4: it comes to the private cliate clients, private client service 563 00:28:27,160 --> 00:28:30,919 Speaker 4: that you offer. What do you advise them on? What 564 00:28:31,000 --> 00:28:32,879 Speaker 4: do you tell them about? What do you educate them on? 565 00:28:33,880 --> 00:28:37,000 Speaker 10: Yeah, I think you know, it's a number of different things, 566 00:28:37,040 --> 00:28:40,840 Speaker 10: because it's really a one on one conversation around whatever 567 00:28:40,880 --> 00:28:42,880 Speaker 10: it is that they're interested in. So it could be 568 00:28:42,960 --> 00:28:45,920 Speaker 10: that they are new on their fine wine drinking journey. 569 00:28:46,000 --> 00:28:49,160 Speaker 10: It could be that they're an established collector, so maybe 570 00:28:49,160 --> 00:28:51,800 Speaker 10: they want to talk through different types of white wines 571 00:28:51,800 --> 00:28:55,200 Speaker 10: that they're interested in. Maybe they have questions about different vintages, 572 00:28:55,680 --> 00:28:58,160 Speaker 10: questions about how long to lay a wine down for, 573 00:28:58,800 --> 00:29:00,920 Speaker 10: questions about how to serve a wan, how to pair 574 00:29:00,960 --> 00:29:02,840 Speaker 10: of wine, all of those types of things. 575 00:29:02,880 --> 00:29:06,040 Speaker 11: So it's really about meeting the client where they're. 576 00:29:05,880 --> 00:29:08,440 Speaker 10: At and giving them advice on how to drink better 577 00:29:08,640 --> 00:29:10,719 Speaker 10: and also have a lot of fun while doing it. 578 00:29:10,800 --> 00:29:13,040 Speaker 2: So is it all about drinking better and being smart 579 00:29:13,040 --> 00:29:15,600 Speaker 2: and understanding? Is it also about wine collecting? We've done 580 00:29:15,640 --> 00:29:19,600 Speaker 2: so much reporting here at Bloomberg and you know, I'm 581 00:29:19,600 --> 00:29:22,120 Speaker 2: just reading from a story that we've done over the 582 00:29:22,160 --> 00:29:25,160 Speaker 2: last year. Passionate collectors buy wines they love and plant 583 00:29:25,200 --> 00:29:26,960 Speaker 2: to drink, yes, but to invest you have to select 584 00:29:26,960 --> 00:29:28,760 Speaker 2: the right ones at the right price at the right time. 585 00:29:28,920 --> 00:29:30,760 Speaker 2: If you have access to buy in the first place 586 00:29:31,120 --> 00:29:33,719 Speaker 2: and have them maintain their value. How many people are 587 00:29:33,800 --> 00:29:37,000 Speaker 2: looking to buy put them on a shelf in a cellar, 588 00:29:37,160 --> 00:29:39,480 Speaker 2: let them sit for a while and rise in value 589 00:29:39,600 --> 00:29:42,080 Speaker 2: to either drink later or to maybe even sell. 590 00:29:43,960 --> 00:29:45,880 Speaker 11: Yeah, I think it's again, it's a mix. 591 00:29:46,000 --> 00:29:48,920 Speaker 10: So our clientele is from all walks of life, truly, 592 00:29:48,960 --> 00:29:51,040 Speaker 10: and so there are people that are looking for something 593 00:29:51,120 --> 00:29:53,320 Speaker 10: that they're going to be drinking this weekend that they're 594 00:29:53,320 --> 00:29:55,640 Speaker 10: sharing with friends, and then there are people who are 595 00:29:55,680 --> 00:29:58,680 Speaker 10: looking to grab a case of their daughter's birth year 596 00:29:58,720 --> 00:30:00,680 Speaker 10: wines to hang on to for a while, so we 597 00:30:00,760 --> 00:30:02,240 Speaker 10: see all different kinds of things. 598 00:30:02,560 --> 00:30:05,000 Speaker 11: I would say that in general. 599 00:30:04,880 --> 00:30:08,600 Speaker 10: The American consumer is very focused on the act of 600 00:30:08,640 --> 00:30:11,560 Speaker 10: consumption and the act of how to drink something in 601 00:30:11,560 --> 00:30:13,840 Speaker 10: its perfect drinking window, and how to find the thing 602 00:30:13,880 --> 00:30:16,240 Speaker 10: that they can open more in the immediate versus hanging 603 00:30:16,280 --> 00:30:17,640 Speaker 10: on to it for a long amount of time. 604 00:30:17,800 --> 00:30:19,400 Speaker 4: Carol wants to start drinking soon, but I have some 605 00:30:19,440 --> 00:30:20,000 Speaker 4: more questions. 606 00:30:20,000 --> 00:30:22,000 Speaker 2: No, but keep going. I don't know, but I mean 607 00:30:22,120 --> 00:30:24,760 Speaker 2: I am learning as I go and have been stills 608 00:30:24,760 --> 00:30:27,880 Speaker 2: like how do you figure out like when's the perfect 609 00:30:27,920 --> 00:30:30,280 Speaker 2: time to drink it, or what you need to do 610 00:30:30,400 --> 00:30:32,040 Speaker 2: or what you should be looking for? I mean, this 611 00:30:32,120 --> 00:30:34,320 Speaker 2: is what you do, Yeah, exactly. 612 00:30:34,680 --> 00:30:36,280 Speaker 11: It is up to personal preference. 613 00:30:36,440 --> 00:30:39,280 Speaker 10: So if you prefer something that is really vivacious and 614 00:30:39,440 --> 00:30:43,200 Speaker 10: fresh and sort of bright and acidic, then you're probably 615 00:30:43,240 --> 00:30:45,520 Speaker 10: going to lean more on the younger vintages of things, 616 00:30:45,600 --> 00:30:48,280 Speaker 10: or maybe the cooler vintages from the different growing regions 617 00:30:48,320 --> 00:30:51,719 Speaker 10: around the world, Versus if you love something that is 618 00:30:52,080 --> 00:30:54,480 Speaker 10: a little bit more broken in, like fine leather, right, 619 00:30:54,520 --> 00:30:56,480 Speaker 10: then maybe you're going to opt for something that's a 620 00:30:56,480 --> 00:30:59,400 Speaker 10: bit more mature, So it totally depends. It also depends 621 00:30:59,440 --> 00:31:02,400 Speaker 10: on what you're eating, how you're feeling, what the temperature 622 00:31:02,440 --> 00:31:04,800 Speaker 10: is outside. So the type of thing is we have 623 00:31:04,920 --> 00:31:07,960 Speaker 10: a range that can apply to any of those situations, 624 00:31:08,200 --> 00:31:10,040 Speaker 10: and I would argue there's a case for all of 625 00:31:10,080 --> 00:31:12,200 Speaker 10: those types of things. It really comes down to how 626 00:31:12,240 --> 00:31:14,800 Speaker 10: you like your wine and how you want to be 627 00:31:15,000 --> 00:31:16,040 Speaker 10: enjoying it in that moment. 628 00:31:16,240 --> 00:31:18,080 Speaker 4: Claudia, I know there's a lot of spending power in 629 00:31:18,120 --> 00:31:21,600 Speaker 4: the Washington, DC area, but there's also a lot of 630 00:31:21,600 --> 00:31:26,560 Speaker 4: spending power in New York, La, San Francisco, Miami. Why Washington, 631 00:31:26,640 --> 00:31:28,000 Speaker 4: d C is your first US. 632 00:31:27,800 --> 00:31:30,520 Speaker 11: Location, that's a great question. 633 00:31:30,600 --> 00:31:32,880 Speaker 10: So I think you know, as a heritage British merchant, 634 00:31:33,080 --> 00:31:36,040 Speaker 10: it made a lot of sense for us to settle 635 00:31:36,160 --> 00:31:39,480 Speaker 10: down our first flagship store in the nation's capital for 636 00:31:39,600 --> 00:31:40,960 Speaker 10: our first foray into the US. 637 00:31:41,280 --> 00:31:43,960 Speaker 11: But also, you know, d C is, as you've just. 638 00:31:43,960 --> 00:31:46,400 Speaker 10: Mentioned, there are some of the wealthiest counties in the 639 00:31:46,520 --> 00:31:48,640 Speaker 10: US that are right here in our backyard. It's a 640 00:31:48,680 --> 00:31:51,720 Speaker 10: super transient city, so people are always coming and going. 641 00:31:52,160 --> 00:31:54,880 Speaker 11: It has a very high. 642 00:31:54,640 --> 00:31:57,680 Speaker 10: Sort of engagement wine scene, and so there's a really 643 00:31:57,680 --> 00:32:02,080 Speaker 10: incredible network of fine dining and wine bars and different 644 00:32:02,080 --> 00:32:05,080 Speaker 10: somolier sort of centric groups, and so it felt like 645 00:32:05,080 --> 00:32:07,240 Speaker 10: a natural place for us to springboard from. 646 00:32:07,520 --> 00:32:10,120 Speaker 11: There's also direct flights to most of the US. 647 00:32:10,120 --> 00:32:13,239 Speaker 10: And with our online business and our different offerings, we 648 00:32:13,320 --> 00:32:16,800 Speaker 10: do cater to clients in forty six different states as well. 649 00:32:16,920 --> 00:32:19,040 Speaker 2: All Right, so you were kind enough to share some 650 00:32:19,080 --> 00:32:21,080 Speaker 2: wine with us so that we can kind of work 651 00:32:21,080 --> 00:32:22,920 Speaker 2: our way through. Should we start with the white or 652 00:32:22,920 --> 00:32:23,320 Speaker 2: the red? 653 00:32:24,640 --> 00:32:26,640 Speaker 11: I think let's start with the white. 654 00:32:26,480 --> 00:32:29,120 Speaker 2: Okay, So tell us what you sent to us. I'm 655 00:32:29,120 --> 00:32:31,600 Speaker 2: not going to go and pronounce it because I'm always 656 00:32:31,720 --> 00:32:38,240 Speaker 2: bad with this. You take no, which is anel d espanol, 657 00:32:39,680 --> 00:32:41,640 Speaker 2: So go ahead, so very good, tell us about this 658 00:32:41,720 --> 00:32:43,240 Speaker 2: white that you shared with us, and I'm going to 659 00:32:43,280 --> 00:32:44,240 Speaker 2: actually open it up. 660 00:32:44,160 --> 00:32:45,760 Speaker 4: And uh, let's hear it. 661 00:32:46,480 --> 00:32:48,840 Speaker 10: Absolutely. I'm honestly so jealous. We should have had some 662 00:32:48,920 --> 00:32:51,240 Speaker 10: here in the office for this too. So you were 663 00:32:51,320 --> 00:32:54,360 Speaker 10: drinking the twenty twenty three Domaine de Cassio pe les Merange. 664 00:32:54,520 --> 00:32:58,520 Speaker 10: So it is a chardonay coming from Burgundy, and we 665 00:32:58,640 --> 00:33:01,240 Speaker 10: chose this one to show to you because it really harolds. 666 00:33:01,320 --> 00:33:04,360 Speaker 10: While we specialize in the iconic wines of the world 667 00:33:04,480 --> 00:33:08,400 Speaker 10: and the really well known producers. We also prize ourselves 668 00:33:08,400 --> 00:33:10,480 Speaker 10: and being able to take our customers on a journey 669 00:33:10,520 --> 00:33:12,920 Speaker 10: and being able to open their eyes to the new 670 00:33:12,960 --> 00:33:15,480 Speaker 10: wave of what's going to be collectible and what's really cool. 671 00:33:15,840 --> 00:33:18,240 Speaker 10: And so this is one of those producers that is 672 00:33:18,400 --> 00:33:21,920 Speaker 10: really allocated. It's a new grower in Burgundy. They've trained 673 00:33:22,000 --> 00:33:25,320 Speaker 10: under some of the very best, and the wine itself 674 00:33:25,360 --> 00:33:27,800 Speaker 10: is very vibrant and I think savory in a really 675 00:33:27,880 --> 00:33:30,200 Speaker 10: nice way. That has to be a perfect pairing for 676 00:33:30,240 --> 00:33:31,240 Speaker 10: your Friday afternoon. 677 00:33:32,360 --> 00:33:35,560 Speaker 2: That's nice, a that's actually really nice and kind of soft. 678 00:33:35,840 --> 00:33:39,920 Speaker 2: I'm not a huge white wine drinker. The audience probably knows, 679 00:33:39,960 --> 00:33:42,360 Speaker 2: but this is nice and it's so funny, like I 680 00:33:42,440 --> 00:33:44,200 Speaker 2: do this and I'm like, why don't I drink white 681 00:33:44,240 --> 00:33:48,239 Speaker 2: wine because it's really really lovely. Do more people do 682 00:33:48,320 --> 00:33:51,520 Speaker 2: you find our drinking more white wine in the summer 683 00:33:51,560 --> 00:33:54,480 Speaker 2: because of the heat, because I'm I kind of drink 684 00:33:54,520 --> 00:33:57,160 Speaker 2: red wine no matter what. But I'm just wonder, do 685 00:33:57,200 --> 00:33:59,520 Speaker 2: you really see that uptick when it's warm out there, 686 00:33:59,560 --> 00:34:01,600 Speaker 2: especially with some of the heat waves that we've been having. 687 00:34:01,360 --> 00:34:03,640 Speaker 11: Globally, You certainly do. 688 00:34:03,720 --> 00:34:07,040 Speaker 10: I would say, champagne in particular is very in vogue 689 00:34:07,040 --> 00:34:09,520 Speaker 10: at the moment, just given how warm it's been in 690 00:34:09,560 --> 00:34:11,680 Speaker 10: the summer. In the East Coast in particular, we've seen 691 00:34:12,040 --> 00:34:15,120 Speaker 10: a huge spike in champagne sales. White Burgundy, which is 692 00:34:15,120 --> 00:34:18,399 Speaker 10: the glass of what you're having, is absolutely incredible at this. 693 00:34:18,400 --> 00:34:18,960 Speaker 11: Time of year. 694 00:34:19,280 --> 00:34:22,160 Speaker 10: Sansera continues to be something people really reach for as 695 00:34:22,160 --> 00:34:25,800 Speaker 10: it gets warmer, and also rose, so we do see 696 00:34:25,840 --> 00:34:28,120 Speaker 10: an uptick in white wine sales, but I think in 697 00:34:28,160 --> 00:34:31,759 Speaker 10: general we specialize in mostly French and Italian wines, and 698 00:34:31,800 --> 00:34:35,520 Speaker 10: so we still have a very healthy base of sales 699 00:34:35,560 --> 00:34:37,680 Speaker 10: of red wines during this time as well. So with 700 00:34:37,840 --> 00:34:40,440 Speaker 10: the red wine category, you can put some of the 701 00:34:40,520 --> 00:34:42,600 Speaker 10: lighter ones. Some people will sometimes put a little bit 702 00:34:42,600 --> 00:34:44,120 Speaker 10: of a chill on it, so leave it in the 703 00:34:44,120 --> 00:34:46,719 Speaker 10: fridge for twenty to thirty minutes before you serve it, 704 00:34:46,760 --> 00:34:48,480 Speaker 10: and that's the way to sort of get the best 705 00:34:48,520 --> 00:34:49,160 Speaker 10: of both worlds. 706 00:34:49,160 --> 00:34:51,040 Speaker 11: If you're more of a red wine drinker, well. 707 00:34:51,000 --> 00:34:53,000 Speaker 4: Let's go to the red please. Yeah, you sent us 708 00:34:53,080 --> 00:34:56,800 Speaker 4: a Chateau l'angois Barton slon. 709 00:34:56,360 --> 00:34:58,640 Speaker 2: Oh stop shot excellent. 710 00:34:58,320 --> 00:35:01,000 Speaker 4: No, that wasn't very good. Thank you actually got basically 711 00:35:01,120 --> 00:35:03,480 Speaker 4: was told by my French teacher to take another language 712 00:35:04,440 --> 00:35:06,399 Speaker 4: in all seriously, all right, what. 713 00:35:06,320 --> 00:35:06,879 Speaker 11: You're doing right? 714 00:35:07,239 --> 00:35:07,520 Speaker 4: Thank you? 715 00:35:07,920 --> 00:35:11,160 Speaker 10: Yeah, it sounds like you speak wine just fine. So yes, 716 00:35:11,200 --> 00:35:12,759 Speaker 10: this is the two thousand and nine, which is an 717 00:35:12,760 --> 00:35:16,200 Speaker 10: exceptional vintage coming from Bordeaux, and so we chose this 718 00:35:16,239 --> 00:35:19,239 Speaker 10: one to show you all because it highlights our provenance. 719 00:35:19,360 --> 00:35:22,160 Speaker 10: And so when we say provenance, it means that because 720 00:35:22,200 --> 00:35:25,239 Speaker 10: we are the oldest wine and spirits merchant from the UK, 721 00:35:25,480 --> 00:35:29,319 Speaker 10: we have relationships that spanned decades and so with those 722 00:35:29,400 --> 00:35:33,279 Speaker 10: relationships you get incredible access to the top producers of 723 00:35:33,320 --> 00:35:37,160 Speaker 10: the world, to special library offerings, to large formats, to 724 00:35:37,880 --> 00:35:41,560 Speaker 10: more bespoke offerings that don't necessarily reach a wider audience, 725 00:35:41,719 --> 00:35:44,080 Speaker 10: and so we felt that the two thousand and nine. 726 00:35:44,400 --> 00:35:47,880 Speaker 11: Chateau Angoa Barton was really exemplary for that reason. 727 00:35:47,960 --> 00:35:51,200 Speaker 10: So this is a family that's been around since eighteen 728 00:35:51,239 --> 00:35:54,560 Speaker 10: twenty one, and so they're one of the more iconic 729 00:35:54,680 --> 00:35:57,560 Speaker 10: families of Bordeaux and they own a number of different properties, 730 00:35:57,560 --> 00:35:59,120 Speaker 10: but this is their third growth. 731 00:35:58,800 --> 00:36:01,279 Speaker 11: In San Julyan. So this is going to be a 732 00:36:01,440 --> 00:36:02,040 Speaker 11: red blend. 733 00:36:02,160 --> 00:36:05,440 Speaker 10: All Bordeaux is a blend typically of cabernet sauvignon and merlau. 734 00:36:05,920 --> 00:36:08,279 Speaker 10: This one comes from the left bank, so you're going 735 00:36:08,360 --> 00:36:10,320 Speaker 10: to look at a base of around fifty to sixty 736 00:36:10,360 --> 00:36:13,839 Speaker 10: percent cabernet sauvignon, depending on the vintage, and then you've 737 00:36:13,840 --> 00:36:17,440 Speaker 10: got some Merleau, some Cabernet franc and some petitbrideaux to 738 00:36:17,480 --> 00:36:18,759 Speaker 10: make up the rest of it. 739 00:36:18,760 --> 00:36:21,239 Speaker 2: It's nice, it's easy, right, It's an easy wine, and 740 00:36:21,320 --> 00:36:25,200 Speaker 2: I could see it's yeah, very very nice. I love 741 00:36:25,239 --> 00:36:27,360 Speaker 2: that it's a Irish descent. I don't know that we 742 00:36:27,480 --> 00:36:30,000 Speaker 2: talk about that lot a lot of wines with kind 743 00:36:30,040 --> 00:36:32,680 Speaker 2: of an Irish heritage, right. 744 00:36:32,640 --> 00:36:35,160 Speaker 11: Yeah, we really don't. And honestly, this is it is 745 00:36:35,200 --> 00:36:36,840 Speaker 11: a unique thing of the Barton family. 746 00:36:36,880 --> 00:36:39,600 Speaker 10: And we were lucky enough to have Lillian Barton visit 747 00:36:39,680 --> 00:36:42,799 Speaker 10: us this past January and she no Irish accent there, 748 00:36:42,800 --> 00:36:44,680 Speaker 10: but she is absolutely fabulous. 749 00:36:44,840 --> 00:36:46,760 Speaker 11: So they're doing a great job at Bordeaux. 750 00:36:46,800 --> 00:36:49,040 Speaker 2: We just have thirty seconds left here. We're not going 751 00:36:49,080 --> 00:36:49,600 Speaker 2: to open it. 752 00:36:49,600 --> 00:36:51,439 Speaker 4: Up because we don't want to get hurt. 753 00:36:51,480 --> 00:36:53,680 Speaker 2: We don't want to get hurt. It's a champagne. It's 754 00:36:53,719 --> 00:36:56,000 Speaker 2: a little warm, so we want to be careful, but 755 00:36:56,040 --> 00:36:59,560 Speaker 2: tell us about what you sent here as well. Champagne 756 00:36:59,600 --> 00:37:03,239 Speaker 2: has had such a big comeback over the last few years. Yep. 757 00:37:03,480 --> 00:37:05,760 Speaker 11: So this is the it's our own label. 758 00:37:05,840 --> 00:37:08,520 Speaker 10: So we showed this one to you because we have 759 00:37:08,719 --> 00:37:11,680 Speaker 10: a label of our own range, and so we partner 760 00:37:11,760 --> 00:37:14,319 Speaker 10: with some of those producers we've had relationships with for 761 00:37:14,360 --> 00:37:17,400 Speaker 10: a long time. This is a grond Cru champagne and 762 00:37:17,440 --> 00:37:19,959 Speaker 10: it retails for forty four ninety five, which is a 763 00:37:20,000 --> 00:37:24,320 Speaker 10: really great value for a champagne, especially of grond Crew quality. 764 00:37:24,680 --> 00:37:29,000 Speaker 10: So it shows you sort of the level of tiering that. 765 00:37:28,960 --> 00:37:31,680 Speaker 11: We have within the range. But also this is our 766 00:37:31,760 --> 00:37:32,640 Speaker 11: number one best seller. 767 00:37:33,000 --> 00:37:35,920 Speaker 4: That was Claudia Chamberlain, Advance Somilier and us general manager 768 00:37:35,920 --> 00:37:37,120 Speaker 4: at Barry Brothers and Rudd. 769 00:37:37,239 --> 00:37:39,279 Speaker 2: And that wraps up our weekend edition of Bloomberg Business 770 00:37:39,280 --> 00:37:41,759 Speaker 2: Week from Bloomberg Radio. Thank you so much for joining us. 771 00:37:42,040 --> 00:37:44,520 Speaker 4: Be sure to tune into Bloomberg Business Week daily Monday 772 00:37:44,520 --> 00:37:46,759 Speaker 4: through Friday starting at two pm Wall Street Time on 773 00:37:46,760 --> 00:37:49,920 Speaker 4: Bloomberg Radio, Bloomberg TV, and on Sirius XM channel one 774 00:37:49,960 --> 00:37:50,439 Speaker 4: twenty one. 775 00:37:50,480 --> 00:37:52,759 Speaker 2: You can also watch our daily broadcast on YouTube. Just 776 00:37:52,760 --> 00:37:56,600 Speaker 2: search Bloomberg Podcasts, where some cast on Bloomberg. Originals available 777 00:37:56,640 --> 00:38:01,000 Speaker 2: on Bloomberg dot com, Slash Originals and streaming platforms Roku, Amazon, 778 00:38:01,040 --> 00:38:03,279 Speaker 2: Fire Tv, Simpsung TV Plus and more. 779 00:38:03,480 --> 00:38:06,640 Speaker 4: Find our Bloomberg BusinessWeek podcast at Bloomberg dot com, Apple, 780 00:38:06,719 --> 00:38:09,600 Speaker 4: or wherever you get your podcasts, and the latest edition 781 00:38:09,680 --> 00:38:12,320 Speaker 4: of the magazine is available on newsstands now at Bloomberg 782 00:38:12,360 --> 00:38:14,440 Speaker 4: dot com, always on the Bloomberg terminal. 783 00:38:14,760 --> 00:38:17,000 Speaker 2: I'm Tim Senebeck and I'm Carol Masser. Have a good 784 00:38:17,040 --> 00:38:19,520 Speaker 2: and safe weekend, everyone. Do stay with us. Today's top 785 00:38:19,560 --> 00:38:22,640 Speaker 2: stories and global business headlines are coming up right int