00:00:02 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. This is the Bloomberg Surveillance Podcast. Catch us live weekdays at seven am Eastern on Apple CarPlay or Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcasts, or watch us live on YouTube. 00:00:27 Speaker 2: David libs with us right now, JP Morgan Asset Management, Paul. There's like twenty degrees in America that are Pixie does. One of them is leadership Studies Williams College. Like it's like liberal arts, but it's like you have to actually work. You have to read everything on FDR. FDR, you read everything on FDR. It's like cottage industry. There. Let's take leadership studies, David over to the markets right now. Where's the leadership is their new leadership in the market. 00:00:57 Speaker 3: So up until this point, the leadership obviously has been concentrated in the tech trade and more specifically the hardware side of things, the chip side of things. When we zoom out and we take a twelve to eighteen month view, we do think that this rotation is going to begin to materialize in a more durable way. I think part of what you're seeing in the market today is investors differentiate between the different parts of the AI supply chain, and so they think about the chips one way and the hyper scalers another way. But you know, every company is an AI company in this environment, and so as you see these productivity benefits begin to accrue more broadly, that's when I really think you're going to see this rotation materialize in a more durable way. 00:01:38 Speaker 4: Are we at the point now where it used to be the more you spend on capex visa VAI, the better it is for your stock. Now it feels like that's not the case anymore, and the market maybe is discerning winners and losers. How do you think about that? 00:01:52 Speaker 3: So I think it all comes back to the idea that if you look at what's happened to free cash flow for the hyper scalers, it's efectively gone to zero. Andoni Miller tells you that capital structure doesn't really matter, but it's how you use that capital structure. And so we're going from a world where all of this AI spend was internally financed to one where the capital markets need to play a role. You've seen debt markets obviously play a significant role up until this point, you're seeing equity markets begin to play more of a role as well as we've seen increasing issuance. I do think you will continue to see that equity story going forward. It's not just going to be about debt. The good news here is that's going to allow some of the free cash flow to come back. And so I think what we're moving into is arguably a world of more balance. After being in a world for the past couple of years where it just felt like one big, one way trade. 00:02:36 Speaker 2: You have a single sentence that you're like, you're thinking for and you're looking in Japan, et cetera. What do you do with a Korea given this IPO today? You forget about the IPO. I don't, I'm saying your remed But what do you do with the semiconductor juggernauts of the Pacific? Rim just observe it or do you actually own it? 00:02:55 Speaker 3: So I think that again we see value in that trade. We've seen value in that trade, but we're also not ignorant to the fact that you are a better investor if you trim your winners and you know, maybe add to some of your losers. And so as we've seen that outperformance in the hardware space. We've brought some of that exposure down and we're leaning into other markets that the frankly or cheaper, you know, one part of em that is still kind of unloved is China. We see opportunity there because of the tech exposure. It's a cheaper way of playing the AI story because it just hasn't run as hard as say the careers of the world, are the hyperscalers, so on and so forth. 00:03:27 Speaker 4: As it relates to China, there is that China risk that's been there for my entire investing career, and we saw it most recently when they, you know, crack down on the technology names five, six, seven years ago. How do you get comfortable with that China risk broadly defined? 00:03:43 Speaker 3: So you have to think about it. But I would argue that geopolitical risk is a feature and not a bug of the current environment. And so whether you're taking geopolitical risk in China, whether you're taking geopolitical risk in the US, right, it's about getting the right balance. And so, you know, are we massively overweight China in portfolios? No, but we're we see opportunity where we think that there's a structural story We're comfortable leaning in because we do think that over time, global equity markets rise together. 00:04:07 Speaker 2: We're just talking about the nineteen sixty seven Red Sox. You don't remember that, David, But what I remember is back then international allocation was five or ten percent. Don't give me every accounts different. Is a general idea Today? What is the percentage of international allocation? 00:04:24 Speaker 3: We tend to start with about a third of an equity portfolio, way bigger than the past. 00:04:28 Speaker 2: Exactly, you're not buying a concrete company, you're not buying the telephone company. Then when you look at a given country, how do you do that? 00:04:37 Speaker 3: So the way we think about it is, you know, as globalization has played out, particularly over the past twenty five years, you've seen these themes. You've seen these stories really kind of gain a global presence. And so you know, if we're playing the semis, we're thinking about how do you play the semis in Europe versus em versus the US. If we're playing the tech software side of things, how do you play that in different markets? I would all also argue that you know, when you look at these particularly the emerging markets, when you look at some of these economies, right they're much more cyclically and manufacturing oriented than the US, and so you can play some of those more durable old school businesses. You don't have to play the software the services story like you do in the US. 00:05:16 Speaker 4: What are you doing in the fixed income market these days? 00:05:18 Speaker 2: High yield? 00:05:18 Speaker 3: We love high yield real I think seven percent all in, particularly as this AI debt comes to market with the backing of the hyperscalers looks pretty attractive. But we're not completely just focused on the corporate space. We're also diversifying into the securitized space. We think the US consumer's in pretty good shape, and that's a way of getting a more diversified carry in portfolios with arguably less volatility. 00:05:39 Speaker 4: Than I think. 00:05:39 Speaker 3: We're going to see inequities going. 00:05:40 Speaker 2: Should we get them in trouble with Mary? Oh yeah, let's do that right now. Okay, So SpaceX is enjoying all of a sudden the thirty year piece six point six y five percent price down, yield up? Are you kidding me? Seven point one percent? And it's breaking down to a new law. We're not quite there yet. This morning is well, when you say high yield, that's what I. 00:06:03 Speaker 3: Triple b So triple B is technically investment grade. We're more comfortable in the double B and the single B space. The stress in triple C is really idiosyncratics, So we're evaluating that on a one off basis. But we feel like we're getting paid for owning this lower quality debt that frankly is much higher quality than it was twenty years ago, and so we think, yes, default rates will rise over time, but we think structurally they will be lower than they have been historically. 00:06:27 Speaker 2: You know, I said it home with that bill in a beverage of my choice, and I watch YouTube like everybody else, and it seems like there's a condo glut in the world. Can you play real estate internationally? Did you see what Simon Property Group has done that I don't own what's that? It's been like a boot shot? Oh okay, real estate in the US? Yeah, do you buy international real estate? 00:06:49 Speaker 3: We do see opportunities in real estate markets outside of the US. I think it's a more nuanced story than here in the US. So, you know, in places like Southeast Asia or Asia broadly, we think the multi family still is one that really has legs. When we look at Europe, I mean return to office in Europe has been completely different than return to office in the US. And when you look at some of those prime properties in central business districts, we do see opportunity there. And so I mean the short answer is, yes, we do see opportunity in real estate globally. 00:07:17 Speaker 2: But when you look at. 00:07:17 Speaker 3: Those non US markets, you have to have a bit of a sharper tip of the spear. 00:07:21 Speaker 2: You don't want to own the beta. 00:07:23 Speaker 3: It's really more about trying to extract the alpha. 00:07:25 Speaker 4: JPMorgan Essett Management. You guys are back at work, right, sure are five days a week? Five days? Well, they got the new office. 00:07:32 Speaker 2: It's gorgeous. I went by Madison Avenue on the backside. It's even more gorgeous in the front side. You know, we have somebody in from the Ohio State, is that right? And like there's like forty bars down the juggernaut to get to Ohio State. At Williams College, it's like the Water Street grill and that's it. 00:07:50 Speaker 4: That's it. 00:07:51 Speaker 3: There was there was one other bar when I was there. It was called the Red Herring. The Purple Pub burned down my freshman year. The number of the plub has since been rebuilt and so now I think we're at like NET three, but a little different than the Ohio state for sure. 00:08:03 Speaker 2: What is the beer of choice in Williamstown. 00:08:05 Speaker 3: I'd say Berkshire Brewing Company Steel steel rail, Yeah, can. 00:08:11 Speaker 2: But my beer choice was Course three two beer water. You're a canna Bugweiser. What is it called. 00:08:19 Speaker 3: It's a local brewery called BBC and they make a steel rail pale ale and that was was available. 00:08:25 Speaker 5: Will you go away? Let's thank you so much. She's Global markets. Chout it this JP Morgan and he'll be buying us around. They probably serve that beer, Paul at the new JP Morgan building. Some I'll look it up, some Berkshire beer. We'll give him a shout out here in a moment. 00:08:43 Speaker 2: Stay with us. More from Bloomberg Surveillance coming up after this. 00:08:55 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live weekday afternoons from seven to ten am. He's durn Listen on Applecarplay and Android Otto with the Bloomberg Business app, or watch us live on YouTube. 00:09:07 Speaker 4: Earlier this year, the consensus was coming in was a weaker US dollar than of course, the war in Iran breaks out, and then people start flooding back to the US dollar. We've got somebody in our studio time that does this stuff for living. He's been doing it for a long time. People actually take his phone calls. Steve England, our global head of g ten FX Research of North America strategy for starting standard Charter Bank. Steve talk to us about what's the view in the currency markets? This sheet coming in right now, with a war that with a world that is at war in two places, how does that kind of in fact the view of the US dollar. 00:09:49 Speaker 6: I think unless something more dramatic happens, the war has faded into the background. Okay, episodes like what we're seeing this week or viewed as a distraction, and I think, you know, most investors think it's going to fade. So it's not really a very tradable type of issue. Obviously, if things escalate a lot that they have to reconsider. I think what they're looking at is, you know, what the FED is going to do, what the US economy is going to do, all the stuff that you guys talk about on equity markets and AI and the technology developments that that has been and will be the bigger driver of the dollar. 00:10:26 Speaker 4: So where is value out there in the currency world. Where are the smart people looking these days? 00:10:33 Speaker 6: Well, I think that they're looking at the dollar. But you know, again it's a question of getting to timing right. The issue or the problem with things like the Iran war is that it can set you back, it can stop you out. So you know, you might say, yes, I have a dollar positive you in three months, but I don't want to be stopped out in three days because things escalate and managing that I think is kind of the big problem that many investors are facing. 00:11:04 Speaker 2: Is there a trade, is there a weight right now or is there a bet on global Wall Street and dollar direction? 00:11:11 Speaker 6: You know, the market has shifted, you know, as you know, at the beginning of the year, everybody hated the dollar. Now you're seeing indications that you know, people have shifted. I don't think the market's as long dollars as say, the you know, futures exchange data suggests, right, because I think there's still a reluctance to buy it. But I think the market's beginning to think about the dollar in a way it hasn't thought about the dollars since the beginning of the trumpet. 00:11:38 Speaker 2: Mins greg have had a beautiful treatment on Alan Greenspan, and he was talking about how Alan Greenspan lectured him a nude, vixel and iconic Swedish economist, just definitive in framing out for an exchange before Mundell and dorn Bush. And I'm given all the people that went to Harvard. Okay, we're not talking Yale here, Steven, And the answer is the real rate matters. What does the inflation adjusted interest rate right now say about our dollar's future? That it could be positive? And they agree. I agree. 00:12:14 Speaker 6: What you've seen is that real interest rates have moved up to the highest levels you know in recent years. 00:12:20 Speaker 2: Come against resistance. 00:12:21 Speaker 6: Fine, yeah, and it could go higher. And the key is going higher for good reasons. Coming back to Wixcel, the idea being that the equilibrium real interest rates reflects the return to capital, and a positive return to capital attacks capital. So the US is like a hedge fund. We borrow from the places that save and we invest in. 00:12:45 Speaker 2: I'm going to suggest this is nowhere in the zeitgeis. This is John riding one oh one Bear Stearns now at Breen, Steven Englander, with all your work at City Group and now holding court at the standard charter bank. Higher interest rates, higher real rates is a vote of confidence. 00:13:04 Speaker 6: For the right reasons, because it reflects a positive productivity shock, a positive supply shock. It would be if you had higher real interest rates because the deficit was getting even worse and you know there was no prospect of it going down. It could be exactly the opposite, and we've seen that in Japan, we've seen that in the UK from time to time. But when it's being driven and it's like your equity guys having smiles on their face because yes, real interest rates are higher, but profits growth is matching that, so it's perfectly fine. But it brings capital. 00:13:38 Speaker 4: In yen at one's sixty two. What's the back of Japan thinking. 00:13:43 Speaker 6: Praying for rain? Look, I think they have a problem. I mean, the boj looks stubbish. The economy doesn't look great. Yeah, it doesn't look terrible, don't there's nothing exciting there. And you know you can see in the market that. 00:14:00 Speaker 4: It takenic call. 00:14:00 Speaker 6: But the sort of market is pricing the probability that the end goes down at very low levels. Right now, the volve for the downside for dollar yen is really who So they don't think it's got anywhere to go to the downside. 00:14:18 Speaker 2: I think our audience intuitally understands weak currency not good domestically. I saw a blurb of bankruptcies in Japan are terrible. You just mentioned the economy is all that good. Can they come in and intervene for the third time? And as dorm Bush lectured us, do they have to do it with courage and a sterilized intervention where they adjust the intervention through the domestic economy. 00:14:45 Speaker 6: You know, I think it's getting harder and harder, and half the market is waiting for them to come in so that they can sell the end when it goes from one sixty two and change to one fifty eight and change. So they have to defeat that market mentality. 00:15:00 Speaker 2: How do they do that? They can only do it sterilizes the way I was lectured. 00:15:04 Speaker 6: Well, if they do it in a way that allows Japanese interest rates to go up, maybe that's going to help. But it's clear that the boj that's that's not where they are right now. 00:15:16 Speaker 2: And you know, one. 00:15:18 Speaker 6: Sixty two looks cheap for the end. But we've been here for a while, and the question you have to ask is you know what brought us here and what's keeping us here? And is anything changing? And there's massive capital outflows? 00:15:31 Speaker 4: What is your market? What is the currency market? How's it responded to this new FED chairman? We've now heard him speak twice, You've seen the minutes. What's your market saying about this new FED chairman? 00:15:43 Speaker 6: I think they're giving him the benefit of that, as you know, like the fixed income market that they I'm a little bit more cautious on how hawk is she's going to be, but I think that the FX market is saying, Okay, he said all the right things. 00:15:58 Speaker 2: Let's see what the follow up is going to be? Can I do one like an audible face Steve Englander kind of whackle thing? So if I'm in Singapore dollar Chinese, redmindy, I made a huge move strong sing dollar, and I got Chinese finally's come back around, and I got the Yuwan. I guess doing better right now? Do you just assume it migrates back to this center tendency? Do you do you assume? I mean, which way does that cut? 00:16:28 Speaker 4: Now? 00:16:29 Speaker 2: Red Mindy or something like sing dollar? 00:16:33 Speaker 6: You know, both have been driven by different things like the sink dollars sort of like an index of Asia currency. It's a broad index. It moves kind of, It's very typical. 00:16:42 Speaker 2: For an Asian currency. 00:16:43 Speaker 6: Yeah, and it's moved up and down with oil prices and with with optimism and so on. 00:16:47 Speaker 2: Remendy has been driven by more. 00:16:49 Speaker 6: Specific things, huge trade surplus. The Chinese determined to show a steady hand in FX. 00:16:59 Speaker 2: Right now, we. 00:17:01 Speaker 6: Don't think both of them are going to go anywhere very fast. But depending on you know, if things change, that can change. But the right right now, it's not a clear picture of what's going to be the driver for that cross to change directly. 00:17:19 Speaker 2: I just want to get a window into his day job with Stephen England. Are actually it does? It's great. I mean on the cross rates, there's no one close on sing dollar you want or any of the rest of it as well. Stephen England are definitive at the standard Charter Bank. Thank you so much this morning. Stay with us. More from Bloomberg Surveillance coming up after this. 00:17:47 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live weekday afternoons from seven to ten am Eastern Listen on Applecarplay and Android Auto with the Bloomberg Business app or watch us live on YouTube. 00:18:00 Speaker 2: As we say, LETSI, Paltic Guzman only show up when there's a red headline out on the Bloomberg. There's like headlines or an amber, and if it's like an important headline, it's in red. This is twenty minutes ago. Cutter pauses push for quick lerg ramp up after tanker attack. We get luckily lucky the expert. How behind is Cutter in a rebuild? 00:18:24 Speaker 7: Thanks for having me, Paul tom So. It's, you know, a setback because a few weeks ago, Katar was already warning its customers that it could leave the force measure by August September, and some of Qatar's priorities are going to be delayed. And what we're seeing is that there is still a sword of democlets hanging over the economies of the Gulf States and those kind of repeated cycles of conflict are going to damage the confidence for the customers and investors. 00:18:59 Speaker 2: Missus King just emailed the surveillance correction. Okay, I said Cutter, And it is guitar like guitar. It's guitar. I don't know guitar. Leslie's correct. Missus King's correct, I'm wrong. 00:19:12 Speaker 4: What a shock, so Lesli and Owner in a recent research note, you kind of lay out three scenarios for the war with their rent and I'll summarize them, you know, comprehensive piece back to war and your scenario number one, which is no war, no piece, which is kind of where we seem to be. If that's in fact the case where we have ongoing discussions, ongoing skirmishes. What's that due to the global energy. 00:19:38 Speaker 7: Market, So it creates a lot of uncertainties. You know, when you look at demand supply, demand balances and prices are going to remain volatile. We've seen already, you know, for gas energy gas prices gqm TTF going back up yesterday and the day before with the series of attacks. So it's a lot of uncertainties. However, we've seen that following the short MoU that we've had so far, prices have come downe market has relaxed, and so it's kind of the market restores its confidence pretty fast. 00:20:16 Speaker 2: Yeah, when you look at your world of natural gas and LNG, do you say that over time they can solve hormos just with pipelines infrastructure doing it the old way. 00:20:29 Speaker 7: So I think it's easier to do for the oil side. And last time I was here, I mentioned, you know, peak Hormos. Maybe you know Iran has less has used its stronger card, you know, one once and for all. On the energy side, it's more complicated for the UEE and pipeline. Not that many alternative There is a small pipeline from Catar to the ue but it's never wanted to be expanded. And however, those companies those countries are going to look for diversification of their portfolio by in equity stakes and having supply elsewhere out of the strait. But for now, for their molecules inside the strade, things are very complicated. 00:21:11 Speaker 4: Before the war, the Strait of Hormus was open for all traffic, and I think we all just assume that was the way. We can't make that assumption anymore, can we. I mean, going forward, I don't think we can ever. If I'm gonna sure, I'm never going to consider the Strait of Hormus completely safe like I did before the war. 00:21:29 Speaker 2: How does that impact A? Is that true? 00:21:31 Speaker 1: And B? 00:21:32 Speaker 4: How does that impact kind of getting molecules out of there? 00:21:35 Speaker 7: Yeah, So I think unless you know, we have this scenario of resuming the war and have very targeted objectives, and you know, this idea of finishing the job that some Gulf states you know, really wanted at one point during the war because they knew that as long as you have this bully or RGC in control, it's going to be really hard to restore the confidence of investors. And you know, even if some golf countries are going solo right now and are trying to placate Iran and having some kind of non packed aggression bilateral agreements, you never know what's coming next tomorrow. You know, we know from history that those non aggression pack never lasts. 00:22:20 Speaker 2: Where was one final question, where does the energy from the Persian golf go? I think our audience perceives the oil goes around, goes around. India goes through the Straits of lock at Asia, same thing with their energy. 00:22:34 Speaker 7: So about seventy percent of Katari energies heading to Asia, about twenty five percent to China. So those are you know, the critical messages. 00:22:45 Speaker 2: There's no other way to get it. It's got to get out. 00:22:47 Speaker 7: So the most impacted are the emerging markets in Southeast Asia because they are the closest and Katar was you know for them, they're they're only supplier for some of them, Bangladesh, Pakistan, India, like the main supplier. 00:23:00 Speaker 2: Have you banned the guitar. 00:23:01 Speaker 7: I've never been to. 00:23:02 Speaker 2: Catar Okay, they ran and they're not du bad like nobody's been really quiet the less coma this is up the Persian. 00:23:09 Speaker 4: I think guitar suffered from what all the reporting actually some serious damage. 00:23:13 Speaker 2: So when the President of the United States says we're going to get rid of Carge Island, We're going to take over cars Island. This island off and ran up by Kuwait and Iraq, how do you respond to that as an expert. 00:23:25 Speaker 7: So, you know, at one point when we were thinking about, you know, this idea of finishing the job and the different targets that the US military would go after, you know, critically, was to remove access of money revenues to the IRGC because they are the one benefiting from the oil revenues. You know, that's their pocket money. Then they buy more weapons and they continue the cycle of violence. So you know, this is one of the targets to really put an end to the money generation cash machine for the IRGC. 00:24:00 Speaker 2: Thank you. Can you come back when we have other red headlines? Yeah? 00:24:03 Speaker 6: Thank you. 00:24:03 Speaker 2: Thanks ch well timed. I can't say enough about it. Leslie Paulton Guzman just wonderfully encyclopedic on liquefied natural gas and of course all of that within the Persian Gulf. Stay with us. More from Bloomberg Surveillance coming up after this. 00:24:27 Speaker 1: You're listening to the Bloomberg Surveillance podcast. Catch us live weekday afternoons from seven to ten am Eastern. Listen on Applecarplay and Android Auto with the Bloomberg Business app, or watch us live on YouTube. 00:24:39 Speaker 2: This is an incredibly important discussion for Global Wall Street. She's the only one I know who's ever read cover to cover White, Sandy and Freed joining us from the CFA Institute. Sandy Peters with stunning, prodigious chops from the Chartered Financial Analyst. Full disclosure, I'm a CFA. Over to what I'm not, which is as a CPA as well. Can American companies hide behind twice a year accounting versus every ninety days? 00:25:09 Speaker 8: Well, we say no. We CFA Institute has supported quarterly reporting since the nineteen fifties, when Benjamin Graham was on our Corporate Reporting Committee, and we have we recently did a survey to look at what our investor members think about quarter what do they think? They think that two thirds of them believe that quarterly reporting is essential, that we need to remain in remain doing quarterly reporting. 00:25:37 Speaker 2: Where are you on this, Paul, I grew up on quarter least. 00:25:41 Speaker 4: But I know our friends in Europe have semi annual and they swear by that over there. What's what are the folks in Europe? Why did they do it in Europe semi annual? I guess what's the advantage? 00:25:50 Speaker 8: Well, you know, we our survey was global, and we wanted to be global because investors invest globally invest in the US, and we wanted to check whether our members support in quarterly reporting even in semi annual jurisdictions. 00:26:03 Speaker 4: And they did. 00:26:04 Speaker 8: Okay, right, So I think there is a lot of notion of it works in those markets, But those markets are actually very much smaller. 00:26:12 Speaker 2: We included in our report sort of. 00:26:14 Speaker 8: A summary of that they have different continuous reporting requirements than the voluntary quarterly reporting we might have here in the US. And you know, just generally investors want more timely information. 00:26:30 Speaker 4: Okay, what does Corporate America say here? What do they want to do it? Presumably it would be reduced my costs if I didn't have to report so often. 00:26:38 Speaker 8: Well, yes, I mean that's been the narrative that it will decrease costs, increase the number of public companies, and result in capital formation. But the SEC's economic analysis really doesn't strongly illustrate that. They illustrate that the economic analysis will save about two hundred thousand dollars per company, but they don't actually quantify any of the cost to investors of not having that. 00:27:04 Speaker 2: Infratase, you're talking to somebody saying, who flunked equipment leasing three times on the exam? And I went down? Thank god, there wasn't a CFA level four. Which accounting statement is most fungible from ninety days to one hundred and eighty days, the balance sheet, the income statement, or the cash flow statement. 00:27:22 Speaker 8: Well, we always say that the cash flow statement is the most important statement, then the income statement, and the and then the value. 00:27:28 Speaker 2: So what happened, Let's go to that, Let's go to free camp. There was an exam pall where everybody did it and we all flipped our answer at the end level two exam and was direct in direct cash flow and the clouds parted and I actually passed on the cash flow statement. How would you hide behind one hundred and eighty days versus ninety days? 00:27:51 Speaker 8: Well, the challenge will be that the SEC proposal allows you to voluntarily elect semi annual reporting or retain quarterly reporting. So the issue is if you elect semi annual reporting and you don't do quarterly reporting, maybe you'll do a press release to keep the insider trading with. 00:28:12 Speaker 2: That's what European companies do, right. 00:28:15 Speaker 8: And so the issue is what will the disclosure be at that quarterly because many companies investors are asking companies, would you go would you retain quarterly reporting? And they're saying yes, but investors aren't asking another second, very important question, which is when you say you're still going to do quarterly what does that mean? Are you going to still file a ten Q or are you going to do an earning slease? And what is it going to include because most earnings releases don't include a statement of cash flow today. 00:28:44 Speaker 4: Yeah, I guess that's right. You know, you don't get that till you get. 00:28:46 Speaker 8: The ten Q in many cases, Yes, some companies do it simultaneously. 00:28:51 Speaker 2: Apple kills with their clarity. Yeah, they're at four fifteen PM. 00:28:57 Speaker 4: I don't know what are the what's the accounting this? You know this c pas A, KPMG's or the word what are they saying about this? 00:29:02 Speaker 8: Well, you know there the comment letters were just due and there's been about seventy thousand comment letters because there have been several campaigns keep it quarterly dot org as well as Wall Street bets that have that have caused a lot of individual investors to say they don't want to move to semiannual reporting. So it's actually so many letters have been coming in, just they're they're very delayed in posting them and it's hard to find what some of the organizations have said. The accounting firms have been somewhat supportive in their in their in their commentary and not many companies are actually commenting excellent commented and support semi annual reporting, but many other reporting well they didn't say what they would do exactly, but they they have they are supportive of. 00:29:52 Speaker 2: The SEC's proposal. You I just don't get how American companies well can be like French. 00:29:59 Speaker 4: Company and the hitch simply is for quarterly is where the US market is the deepest capital markets in the world in part because of the transparency, and if you sacrifice some of that transparency, perhaps you sacrifice some of the vibrancy of the US capital markets. Is that kind of the argument exactly? 00:30:18 Speaker 8: And we think this might be a very expensive experience or experiment. 00:30:22 Speaker 2: You give precious time left, I got eight ways to go here. I'm going to stand this theme. Sandra Peters with a CFAT institute. My assumption of this, and you're too young to remember this that I remember when earnings were revenues, earnings, move on. In the back page of the Wall Street Journal, word Buffet taught us along with mister Graham, to read the damn notes. And the answer is this whole concept is for people rush, rush, rush in the financial media, where adults who actually read the ten whatever and read the notes enjoy the ninety day scrutiny. There's like two subsets, isn't there? Yeah? 00:31:02 Speaker 8: I think that it it that scrutiny is particularly important to your comment on the deepest and most liquid capital markets. Right, we won't have in a quarterly reporting regime or a voluntary quarterly reporting regime, we won't have those notes. Most likely we won't have those notes. We don't know what companies will actually produce. So you know, back in nineteen fifty, we've drove, we dove into our archives and looked at what we said, and the things that they were saying are the things that investors would still say today about the need for more timely information. And it's actually really remarkable. And I wrote an article about this months ago, about how the SEC would propose moving to having less information in a world where developing the information and reporting it has never been more or at least costly. 00:31:54 Speaker 2: We got to go. But would you tell Bob ar Nott and Cam Harvey their essay and the New Financial Analyst Journal probably is my essay of the year. I yes, but folks, the research they're doing is jaw dropping, and that's the growth Inness saying, I'll cover it this fall a lot. Well, if Cam Harvey backs, you're a good friend of Paul's and we'll get mister on not in here as we Cam. But I just can't say enough about the thinking of value versus growth. Just the grunt work of Wall Street that doesn't get enough coverage can you come back. Are you in Charlottesville, No, I'm in New York. 00:32:33 Speaker 8: But you know, there's also the SEC is doing a whole series of other reductions and disclosures that we need to zoom out and talk about that as well as they're doing a whole series of reduction of disclosures for newly public companies as well as reprising disclosures related to regulation. 00:32:53 Speaker 2: It's your false SpaceX is going down, Sander Peters. Thank you, Thank you so much for the institute. 00:32:59 Speaker 1: This is the Bloomberg Surveillance podcast, available on Apple, Spotify, and anywhere else you get your podcasts. Listen live each weekday, seven to ten am Eastern on Bloomberg dot com, the iHeartRadio app, tune In, and the Bloomberg Business app. You can also watch us live every weekday on YouTube and always on the Bloomberg terminal.