Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm pim Fox.
Speaker 1: Along with my co host Lisa Bramowitz. Each day we
Speaker 1: bring you the most important, noteworthy, and useful interviews for
Speaker 1: you and your money, whether you're at the grocery store
Speaker 1: or the trading floor. Find the Bloomberg p m L
Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot Com. It
Speaker 1: is my honor to bring in Ricardo Houseman, director of
Speaker 1: the Center for International Development at the Harvard Kennedy School.
Speaker 1: He also was the head of Planning in Venezuela previously
Speaker 1: UH and has a really good window into a situation
Speaker 1: that is devastating to watch unfold. And UH, I was
Speaker 1: reading through your recent essay for Project Syndicate, which is
Speaker 1: called the Hunger Bonds, and you're talking about really the
Speaker 1: ethics of investing in Valis Venezuelan debt at a time
Speaker 1: of such a humanitarian crisis, and you said, if you
Speaker 1: are a decent human being, investing in Venezuelan bonds should
Speaker 1: make you feel mildly nauseous, borrowing phrase from UH former
Speaker 1: FBI director James Coming. Why, Well, because essentially you have
Speaker 1: a country that is imploding imports have declined by between
Speaker 1: two thousand and twelve and two thousand sixteen. There further
Speaker 1: percent down in two thousand seventeen. That means that there's
Speaker 1: no food, there's no medicine, there's no intermediate inputs for production,
Speaker 1: there's no anything. So the economy is imploding. The capital
Speaker 1: stock of the country is dwindling, it's being you know, yes,
Speaker 1: But the thing that I'm trying to connect is if
Speaker 1: a situation is so dire, wouldn't you think that putting
Speaker 1: more money into it would actually help it? Well, right now,
Speaker 1: markets think that Venezuela is going to go broke, and
Speaker 1: so the guield on on Venezuelan bonds is upwards of
Speaker 1: so markets are pricing in a very very high likelihood
Speaker 1: of default. The government has decided not to default, and
Speaker 1: in order not to default, it has compressed imports. So
Speaker 1: when news comes out that imports are down, bonds rally,
Speaker 1: which means that the more Venezuela's go hungry, the better
Speaker 1: you feel about your bonds, because the more dollars are
Speaker 1: left to service your debt. So that service in Venezuela's
Speaker 1: costing around fourteen billion dollars and total imports this year
Speaker 1: are unlikely to reach sixteen billion dollars. So essentially you're
Speaker 1: you're in order to service the debt, you need not
Speaker 1: to import food, medicine inputs, and that is what is
Speaker 1: keeping the government paying the debt. So are you saying
Speaker 1: that if investors stopped putting money allocating money to Venezuela,
Speaker 1: that eventually the government wouldn't be able to ring an
Speaker 1: anything more out of imports and would be forced to default.
Speaker 1: The yes, that that is that when the markets have
Speaker 1: closed Venezuela out already. So all we're talking about is
Speaker 1: trading old debt. So if you hold this old debt,
Speaker 1: what you're now asking is, so this old debt was
Speaker 1: issued at the time and the money was wasted, corrupted, etcetera,
Speaker 1: and got us into this mess. So if you hold
Speaker 1: Venezuela that you're hoping maybe that a better government comes
Speaker 1: up and the economy recovers, and the recovery is used
Speaker 1: not to recover Venezuela and income levels, but to pay you.
Speaker 1: So you're again placed in a situation where you're in
Speaker 1: well being, the return on your assets depends on bad
Speaker 1: things happening to Venezuelans, and you don't want to do that.
Speaker 1: There is a story on the Bloomberg a couple of
Speaker 1: months ago talking about how autocratic UH dictatorships end up
Speaker 1: being fantastic investments for bondholders, and it saying, you know,
Speaker 1: just because you know, honestly, investing isn't necessarily moral, it's
Speaker 1: dollars and cents, and these autocratic leaders end up paying well,
Speaker 1: that that's not really true. I mean, the reason why
Speaker 1: there's impact investment is because people care about doing well,
Speaker 1: but they also care about doing good. I mean, would
Speaker 1: you put money into a company that is selling guns
Speaker 1: to drug traffickers? Would you invest in in so would
Speaker 1: you have bought Hitler bonds? So there is we are
Speaker 1: moral beings and we want to do well, and we
Speaker 1: also want to do good and and because of that,
Speaker 1: people choose what they're willing to invest in. You know,
Speaker 1: it's interesting that this is coming up at a time
Speaker 1: when emerging markets debt is on fire. There is billion
Speaker 1: billions of dollars going into emerging markets credit, in particular
Speaker 1: through funds that seek to track the JP Market Emerging
Speaker 1: Market Bond Index. And you talk about how even though
Speaker 1: Venezuela only represents five percent of the index, it accounts
Speaker 1: for about of the total yield. Uh. You know, so
Speaker 1: anyone who's going into emerging markets debt right now is
Speaker 1: contributing to this exactly. And I want, I want to
Speaker 1: save them. I think that all the other emerging markets
Speaker 1: are doing fine. I want just to take Venezuela out
Speaker 1: of the index so people are not forced into buying
Speaker 1: Venezuelan bonds, so people are not forced into these moral clones. Well,
Speaker 1: so are there people who are demanding the JP Morgan
Speaker 1: remove Venezuela debt from this benchmark index that is the
Speaker 1: gold standard for emerging markets credit investing. Well, I just
Speaker 1: put it out today, so let's see hear what you know.
Speaker 1: It's it's it's a tricky thing because at the end
Speaker 1: of the day, investors are responsible for doing well by
Speaker 1: their by their clients right now, and and they and
Speaker 1: you know, the managers don't want to be their their
Speaker 1: bonus to be dependent on getting the Venezuela called right
Speaker 1: because so, you know you Venezuela, everybody thought that was
Speaker 1: going to default. It didn't default, and that was good
Speaker 1: for the bonds. Why did it not default? Because it's starved.
Speaker 1: It's people you don't want to be rejoicing in those situations.
Speaker 1: Thank you so much for joining us. Really an important discussion.
Speaker 1: Ricardo Houseman is the director of the Center for International
Speaker 1: Development at Harvard's Kennedy School, which is based in Boston,
Speaker 1: but he is here in on Bloomberg eleven three oh studio.
Speaker 1: He also is the former Minister of Planning for Venezuela
Speaker 1: and former Chief Economists of the INTERN Inter American Development Bank.
Speaker 1: Really appreciate your comments right now, I want to try
Speaker 1: and focus where there is a lot going on, which
Speaker 1: is the G seven meeting that is going on in
Speaker 1: Sicily this weekend, and we are going to UH here
Speaker 1: from President Trump as well as other world leaders about
Speaker 1: issues ranging from trade negotiations, to the to the environment,
Speaker 1: UH to potentially how to fight terrorism. I want to
Speaker 1: bring in for some more perspective Arial Cohen, who is
Speaker 1: a Senior Fellow at the Atlantic Council. He's also director
Speaker 1: the Center for Energy, Natural Resources and Geopolitics at the
Speaker 1: Institute for Analysis of Global Security based in Washington, d c. Arial,
Speaker 1: thank you so much for joining us today. I would
Speaker 1: love to get your thoughts before we move into what
Speaker 1: to expect during the G seven summit. What's your evaluation
Speaker 1: so far President Trump, when he was at NATO and
Speaker 1: during this world tour, well, let's talk with the good news.
Speaker 1: The world tour went when went well until he got
Speaker 1: to Europe. He did well in Saudi Arabia, the historic
Speaker 1: one hunting and ten billion dollar arms deal hopefully will
Speaker 1: not hurt our ally. Israel. He did okay in Israel,
Speaker 1: although there was no clarity on how to proceed on
Speaker 1: the suggested talks with the Palestinians. The Palestinians are not
Speaker 1: doing their fair share in terms of stopping incitement to
Speaker 1: violence and controlling terror. But when he hit Europe, the
Speaker 1: rock UH don'ald Tom has very strong ideas about how
Speaker 1: our allies should behave. I was reading his book, The
Speaker 1: Art of the Deal that he co authored, and he
Speaker 1: is clearly even back then, So that's UH what thirty
Speaker 1: years ago believe that the Japanese and the Europeans are
Speaker 1: not paying UH their fair shriff for defense, that they
Speaker 1: have unequal trade deals that have heard of Americans. But
Speaker 1: with all that, NATA is one of the most successful
Speaker 1: military and political alliances of his of all the history. UH.
Speaker 1: NATA has been in existence since nine UH and UH
Speaker 1: it provided a lot of security. It's not rent a cop.
Speaker 1: It's not that you pay a monthly fee and we
Speaker 1: provide you with our missile defenses or our soldiers. So
Speaker 1: they there's a very steep learning curve in the Trump
Speaker 1: White House. And yes, do you think that anything that
Speaker 1: he said jeopardized that very strong alliance. I just came
Speaker 1: back from Europe. I was in a high level conference
Speaker 1: with the Germans UH, primarily looking at frustra there's a
Speaker 1: lot of disappointment now. I would say there was a
Speaker 1: lot of disappointment with some of Barack Obama's foreign policy,
Speaker 1: including in the Middle East. So uh, you know, we're
Speaker 1: grown ups. It's not very easy to satisfy each other
Speaker 1: all the time. But I would not push the Germans
Speaker 1: and the other Europeans in open forms as harshly as
Speaker 1: Donald Trump is doing right now. But I think his
Speaker 1: main issue that they need UH to pay in more
Speaker 1: into defense, that the fair the fair share UH is
Speaker 1: not there. You know, they're not paying enough for for
Speaker 1: the defense. That is a valid point, very valid. Okay, Well,
Speaker 1: Ariel moving on to the summit that is upcoming, the
Speaker 1: G seven summit that is happening in Sicily this year.
Speaker 1: Where world leaders, major world leaders get together. Not Russia, however,
Speaker 1: of course, Um, what do you think is the most
Speaker 1: important thing that will be discussed and what do you
Speaker 1: expect and come out of this meeting? I think European
Speaker 1: grows is anemic. They will be talking about how to
Speaker 1: get Europe beyond their one point nine grows. The global
Speaker 1: growth is projected three point five, which is okay, but
Speaker 1: you know, we probably could do better in the emerging markets.
Speaker 1: I don't think they have a lot in terms of solutions.
Speaker 1: I think that between the Europeans will be a talk
Speaker 1: about how to heal Brexit. There are some harsh statements
Speaker 1: on both sides. The Europeans said, you owe us what
Speaker 1: two billions? Uh? The Brits retaliated and responded with their number.
Speaker 1: But overall, as usual, interest rate, deficit, taxation, things like that.
Speaker 1: They are always on the G seven agenda. You're absolutely right,
Speaker 1: Russia is not there. Why Russia was a part of
Speaker 1: what used to be G eight. Russia is not there
Speaker 1: because of their aggression in Ukraine. So do you think
Speaker 1: that Russia is going to be a conversation That is
Speaker 1: going to be a difficult one for President Trump to
Speaker 1: wait into the Europeans indicated that with the exception of
Speaker 1: the sanctions, that they differ on Russia. But Europe is split.
Speaker 1: As I said, I just came back from Europe. There
Speaker 1: was I was a part of the conversation on Russia
Speaker 1: between US and Germany. UM. I think if Chancellor Merco
Speaker 1: wins re election as is widely expected, not just the
Speaker 1: sanctions will continue. The perception that Russia is a threat
Speaker 1: to Europe will persist in Europe, and the Trump administration
Speaker 1: is split. The leaders of our defense and foreign policy
Speaker 1: establishments understand the Russia is a threat, with the White
Speaker 1: House maybe not so much so. One other point that
Speaker 1: is probably going to come up and loom large at
Speaker 1: the G seven summit is the environment and the Paris
Speaker 1: Climate Accord and environmental protections. What do you think will
Speaker 1: come out with respect to that? Uh? This is sixty
Speaker 1: four billion dollar questions because the Trump White House is
Speaker 1: very climate skeptic. Uh. They are thinking seriously about pooling, um,
Speaker 1: the US out of the Paris Accords. Of course, the
Speaker 1: accords of volunteer accords, and the question is how enforceable
Speaker 1: are they? And I think the big divide among other
Speaker 1: things among besides the trade. Besides the Europeans not paying
Speaker 1: their fair share for defense is also climate and I
Speaker 1: would hate to see our relationship with Europe deteriorating further.
Speaker 1: But Mr Trump and his electorate have a very strong
Speaker 1: view on climate which is very different than our bi
Speaker 1: coastal elites. The West Coast and the East coast elites
Speaker 1: are of course pro climate change and recognize it as
Speaker 1: a major issue. And so do the European elite. So
Speaker 1: this is one of the serious folk lins when we're
Speaker 1: not staring into the abyss of the threat of the
Speaker 1: radical Islamist terrorism. Alright, real quick, Ariel, On a scale
Speaker 1: from one to ten, how would you create his international
Speaker 1: trip so far? Uh? Saudi Arabia, A, Israel B plus Europe.
Speaker 1: See Ariel Coh and thank you so much for joining us.
Speaker 1: Aero Cohen is Senior Fellow at the Atlantic Council. Also
Speaker 1: he is the director of the Center for Energy, Natural
Speaker 1: Resources and Geopolitics at the Institute for Analysis of Global
Speaker 1: Security in Washington, d C. We want to take a
Speaker 1: moment to let you know about something new from Bloomberg.
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Speaker 1: our io s app or search for the Bloomberg extension
Speaker 1: on the Chrome Store to try it out. Learn more
Speaker 1: at Bloomberg dot com slash lens. Right now, I want
Speaker 1: to talk about getting to the beach or the pub,
Speaker 1: particularly in a car or a truck or perhaps a
Speaker 1: I don't know, a diesel train after they exist, I
Speaker 1: don't know. Anyway, I want to bring in someone who
Speaker 1: knows a lot more about all things oil, Vincent Piazza.
Speaker 1: He is a senior equity energy Analystic Global sector leader
Speaker 1: for Bloomberg Intelligence, UH focusing on oil, focusing on Opaque,
Speaker 1: which just is completing their meeting and UH yesterday create
Speaker 1: values fell out of bed? What happened? So? If I
Speaker 1: recall my Jesuit high school English class, what's the Shakespeare play?
Speaker 1: Much Ado about? Nothing? So look, I think in order
Speaker 1: to extend confidence for price there needed to be something
Speaker 1: more than just the extension of the cuts um they needed.
Speaker 1: I think what the market was looking for. We're deeper cuts. Right,
Speaker 1: you can curtail production, but actually exports rose higher throughout
Speaker 1: this period of time, So you still had this overflow
Speaker 1: of petroleum out there in the marketplace. So if I
Speaker 1: think about just here in the US, still a major importer,
Speaker 1: you had uh patrolling, We had crude oil volumes, crude
Speaker 1: oil stockpiles quite high, roughly above the five year average.
Speaker 1: That's over a hundred million barrels of extra storage that
Speaker 1: we need to flush out. And so you have this
Speaker 1: range bound market. You know, OPEC during the during their
Speaker 1: first agreement to curtail output last year, set a floor
Speaker 1: for US and that floor is round forty. Okay, what
Speaker 1: US output and the ascendency of US output does is
Speaker 1: it puts a ceiling on that price rise because now
Speaker 1: those barrels can flow out into the global marketplace as well.
Speaker 1: And we've heard from four Q earnings calls and one
Speaker 1: Q earnings calls management teams suggesting that in that fifty
Speaker 1: dollar range they can push on that accelerator, complete those wells,
Speaker 1: and bring that put online. In that sixty range, we're
Speaker 1: talking about a resurgence of growth and new wells being drilled.
Speaker 1: So there you have that price range. You didn't really
Speaker 1: hear anything different the last day or so about deepening
Speaker 1: cuts to help push well dilution of the although stock piles,
Speaker 1: both in the US and also more broadly, just to
Speaker 1: put some numbers to this, So on on Wednesday, the
Speaker 1: price of crewed was fifty one, a little more than
Speaker 1: fifty one barrel, uh next day tumbling four point almost
Speaker 1: to forty a barrel in the wake of the expected
Speaker 1: prolonged output cuts, but not necessarily deeper output cuts. I mean,
Speaker 1: could you argue that if they had had deeper output
Speaker 1: cuts that I wouldn't have done anything because the higher
Speaker 1: prices go, the more shale producers just stick on the accelerator.
Speaker 1: And that's the conundrum. What's the eggit strategy? Right? So
Speaker 1: this this output cut, this this this strategy is likely
Speaker 1: more transitory. Um it's been engineered to prosecute other means.
Speaker 1: So for example, Saudias I p O okay, and boosting
Speaker 1: the price of oil, which boost sentiment, which would boost
Speaker 1: the reception for that I P O. But you're still
Speaker 1: in this range, and we've talked about this for several months,
Speaker 1: several quarters every time month on the show. It's consistent. Right,
Speaker 1: You have this tight range because you have this output
Speaker 1: from the US that can respond more quickly than perceived
Speaker 1: to any price signal. So what could break us out
Speaker 1: of this range? Because you know, we remember running into
Speaker 1: you getting a cup of coffee and you said, you
Speaker 1: know a lot of people haven't lived through a true cycle.
Speaker 1: This is not the cycle high and lower in a range,
Speaker 1: but it does break out eventually and it can go
Speaker 1: way higher or way lower. And it's it's demand centric.
Speaker 1: It's sustained demand centric. You know the Chinese filling their
Speaker 1: spr that is on a sustained demand trajectory. Right, And
Speaker 1: if you think about the broader scope, if you think
Speaker 1: about car efficiencies, um, better better mileage, right, that reduces
Speaker 1: that that demand cadence. So in a way, so if
Speaker 1: I'm hearing you correctly, given that the move is toward
Speaker 1: electric vehicles, is towards being less uh less focused on
Speaker 1: oil as a use for and a motive of getting energy.
Speaker 1: Given that, I mean, isn't demand only going to go
Speaker 1: down from here? I would say the demand growth will
Speaker 1: be more curtailed, and so that price range will be more,
Speaker 1: will be tighter and to the longer and longer, and
Speaker 1: likely to so lower relative to where we were in
Speaker 1: two thousand and fourteen and where we were in two
Speaker 1: thousand and seven relative to that period, Yes, it will
Speaker 1: be lower, but that but that tighter range, that forty
Speaker 1: is safety tight range really speaks to the paradigm shift
Speaker 1: that we've been seeing so real quick, I know we
Speaker 1: are heading into Memorial Day weekend, and does does gas
Speaker 1: demand really pick up that much? So again we talk
Speaker 1: about this this this this concept of more fuel efficient vehicles, right,
Speaker 1: and if you just think about the mild winter and
Speaker 1: the mount winter, actually we've seen of vehicle miles traveled
Speaker 1: tracking above the five year high. Okay, I'm sorry the
Speaker 1: five year average. Right, so more folks in the road. Now,
Speaker 1: consumption for the summertime will likely rise, maybe about one percent,
Speaker 1: but you have many more vehicles on the road, So
Speaker 1: that does speak to the fuel efficiency. Now that mix,
Speaker 1: and I talked to our autos analyst, Kevin Tynan, and
Speaker 1: he suggests that that new sales mix, that new vehicle
Speaker 1: mix is tilted more toward the light light truck side,
Speaker 1: so there could be some additional fuel consumption, but again
Speaker 1: relative to where you were in prior periods, it's a
Speaker 1: much more fuel efficient vehicle, and so consumption is likely
Speaker 1: not to budge that much, but it should be higher
Speaker 1: relative year a weear just because the mild winter that
Speaker 1: the mild winter we had, and also the outlook for
Speaker 1: the summertime. Vincent Piazza, thank you so much for joining us.
Speaker 1: Always a wonderful thing to talk with you. Vincent Piazza,
Speaker 1: senior equity energy analysts and global sector leader for Bloomberg Intelligence. Well,
Speaker 1: you know, I've got to say I was kind of
Speaker 1: surprised to realize just how big the market for auctioning
Speaker 1: off heavy industrial equipment is. Robbie Telegram joins us now.
Speaker 1: He's chief executive officer for Richie Brothers, which is the
Speaker 1: leading auctioneer of this equipment UH in the world. Robbie
Speaker 1: joins us now from Burnaby, Canada, which is a suburb
Speaker 1: of Vancouver. Robbie, thank you so much for joining us. First, congratulations,
Speaker 1: I know that you just recently announced that you would
Speaker 1: be going ahead and acquiring Iron Planet for almost a
Speaker 1: billion dollars eight point five million dollars UH. And now
Speaker 1: that you rank is a fifty tough fifty e commerce company.
Speaker 1: I would love you just give me a sense of
Speaker 1: how big this market is for auctioning off heavy industrial equipment. Lisa,
Speaker 1: thank you so much. The auction market is about three
Speaker 1: hundred sixty billion dollars globally and it encompasses um sectors
Speaker 1: such as construction, transportation which is over their own trucks, agriculture,
Speaker 1: oil and gas, and mining. And there are different channels
Speaker 1: through which used equipment and the three and sixty billion
Speaker 1: is used equipment that gets sold through these channels, so
Speaker 1: very large. So how do these how do these auctions work?
Speaker 1: I mean I was joking with with my producer earlier
Speaker 1: that I think of like pond stars, you know, people
Speaker 1: coming with their tractors up to a of to of
Speaker 1: to a window and saying, hey, you know, how much
Speaker 1: can you get for this? But has it work? Really? No,
Speaker 1: think it's actually a little bit more sophisticated than that.
Speaker 1: So we um uh Richie Brothers has been the pioneer
Speaker 1: in what is called us an unreserved auction, which is
Speaker 1: that everything will sell no matter what. And we have
Speaker 1: auction yards around the world. We have forty four yards
Speaker 1: and these auctions are unique in the sense that they're
Speaker 1: both live as well as online, so they integrated and
Speaker 1: people can call from all over the world or book
Speaker 1: our make purchases online as well as bid on site.
Speaker 1: So we've got that unique integrated model, and we merchandise
Speaker 1: our equipment on our yards. It's like a Picasso picture.
Speaker 1: Are people do a beautiful job. There's like ten thousand pieces,
Speaker 1: So think about it as dozers and tractors all over
Speaker 1: the yard and buyers, potential buyers come kick that ours
Speaker 1: look at the equipment. We also provide information so people
Speaker 1: can look at it online and then an auctioneer m
Speaker 1: much like any other UH industry, will auction off those
Speaker 1: items and we could sell potentially a three million dollar
Speaker 1: crane in less than sixty seconds. Wow. So what is
Speaker 1: the most popular item to get sold? Well, construction is
Speaker 1: our sweet spot. We do things like excavators and UH wheeloaders,
Speaker 1: UH dozers, so the gamut of it and all things
Speaker 1: that going to really bridge building, roadworks and so in
Speaker 1: many ways we think of Richie Brothers as enabling building
Speaker 1: of the world, but also with agricultural equipment farming. So
Speaker 1: so it's really a company that we feel very good
Speaker 1: about that our people are enabling commas. So I'm trying
Speaker 1: to understand whether your business stands to gain during periods
Speaker 1: of ramped up infrastructure or if, uh, you know, when
Speaker 1: when your company does best. We're part of the cycle.
Speaker 1: But interestingly, Lisa, it's we do well in good times
Speaker 1: and do well not so good times as well. And
Speaker 1: in good times when the economy is doing well, when
Speaker 1: there's infrastructure spending, new equipment production is at a peak
Speaker 1: and people like to buy new. Eventually that convert gets
Speaker 1: converted to used equipment, so we benefit from that. When
Speaker 1: times like we had the oil and gas crisis last
Speaker 1: few years, we were the beneficiaries because the people get
Speaker 1: dislocated and they want to sell their equipment, and we
Speaker 1: then are able to help our customers dispose of their
Speaker 1: equipment and get the best values. And we get the
Speaker 1: best best values because of our knowledge of pricing. Were
Speaker 1: known as the foremost authority or used equipment pricing, and
Speaker 1: that helps us get the best deals. Despite the fact
Speaker 1: that we're an unreserved auction Who are the sellers. The
Speaker 1: sellers are the majority for Richie Brothers end users. These
Speaker 1: are people who are general contractors who might be in
Speaker 1: bridge building, roadworks. So the s are people that are
Speaker 1: entrepreneurs and we have tremendous respect for them. Many of
Speaker 1: them have grown with us and we've grown with them.
Speaker 1: Say yeah, I'm just trying to understand why they want
Speaker 1: to sell their equipment, right, I mean, like, what would
Speaker 1: drive them to have too much and then I don't
Speaker 1: want to offload some of it? Well, I think UM
Speaker 1: contractors like to optimize their fleets. So after a certain
Speaker 1: number of hours, or let's say the equipment is three
Speaker 1: years old, they want to get in new equipment. Or
Speaker 1: they've finished a job and there's a lot between the
Speaker 1: next job, so they don't want to build up inventories.
Speaker 1: So that's why they want to dispose it off So
Speaker 1: it's replacement, and you know they can also take it
Speaker 1: into a dealer and trade it in. But Richie Brothers
Speaker 1: has trusted relationships and because of our ability to give
Speaker 1: them great values, they come to us. Thank you so
Speaker 1: much for joining me. It's a fascinating industry and one
Speaker 1: that is much bigger than I had imagined it to
Speaker 1: be three and sixty billion dollars globally. Rabbi Telegram. He
Speaker 1: is the chief executive officer of Richie Brothers. Coming to
Speaker 1: us from Burnaby, Canada, that is a suburb of Vancouver,
Speaker 1: and Richie Brothers just got clearance from the Department of
Speaker 1: Justice for their seven fifty eight point five million dollar
Speaker 1: acquisition of Iron Planet uh and it is one of
Speaker 1: the top fifty e commerce companies in the world. Really
Speaker 1: interesting industry. Thanks for listening to the Bloomberg P and
Speaker 1: L podcast. You can subscribe and listen to interviews at
Speaker 1: Apple Podcasts, SoundCloud, or whatever podcast platform you prefer. I'm
Speaker 1: pim Fox. I'm on Twitter at pim Fox. I'm on
Speaker 1: Twitter at Lisa Abramo. It's one before the podcast. You
Speaker 1: can always catch us worldwide on Bloomberg Radio.