WEBVTT - Single Best Idea with Tom Keene: Rebecca Patterson & Max Kettner

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Single best Idea. What are we doing here? We're trying

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<v Speaker 2>to do a short podcast. Everybody's lined up like with

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<v Speaker 2>The Big Take David Gura's Wonderment, but the Big Take,

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<v Speaker 2>you know, twenty minutes, twenty five minutes, thirty minutes. We're

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<v Speaker 2>trying to do it quick, three four five minute Single

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<v Speaker 2>best idea. Where we do too. We should have been

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<v Speaker 2>double best idea or single best ideas. Forget about it.

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<v Speaker 2>It's single best idea. And it's just two vignettes from

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<v Speaker 2>the wonderful set of guests we have. We always have

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<v Speaker 2>too many to choose from. Rebecca Patterson stop by today

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<v Speaker 2>to start us off strong on a fed week number

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<v Speaker 2>of different teams. She walked in and said, look, I

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<v Speaker 2>look strong dollar. I looked resilient dollar. But Rebecca Patterson said, really,

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<v Speaker 2>the surprise out there could be not only resilient inflation

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<v Speaker 2>or even elevated inflation, but more than that.

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<v Speaker 1>Think about risks in the next year. And one risk

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<v Speaker 1>that I think is on people's radar screens but maybe

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<v Speaker 1>not enough, is a resurgence of inflation. And one area

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<v Speaker 1>I think you want to watch is food inflation. US

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<v Speaker 1>farmers are struggling right now. They can't get enough workers,

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<v Speaker 1>and seventy percent of workers in US farming are immigrants,

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<v Speaker 1>about half of those are illegal immigrants. If you reduce

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<v Speaker 1>the workers, you can't get the crops out of the ground.

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<v Speaker 1>Prices go up, profits go down. In addition to that, though,

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<v Speaker 1>the tariffs are a big hit on US farmers. In

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<v Speaker 1>twenty eighteen nineteen, those that year period alone, they lost

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<v Speaker 1>twenty seven billion dollars in export revenue. Now, last time

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<v Speaker 1>Trump failed them out, they got over eighty billion dollars

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<v Speaker 1>in government subsidies. This time, they don't have as much

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<v Speaker 1>free money flowing to hand out. So why do avocados

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<v Speaker 1>come in the mix? Because percent of American avocados come

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<v Speaker 1>from Mexico. And if we don't have people to get

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<v Speaker 1>those avocados out of the ground here in California, and

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<v Speaker 1>the tariffs on Mexico are causing some retaliation, avocados are

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<v Speaker 1>going to become a luxury good.

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<v Speaker 2>And Lisa Matteo weighed in on the use of avocado oil.

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<v Speaker 2>I learned more about avocados today than I have in ages.

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<v Speaker 2>They're very strong and very rich, and mac needs you.

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<v Speaker 2>I didn't know that, you know, thank you Rebecca Patterson

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<v Speaker 2>on avocados and on inflation as well. People don't say

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<v Speaker 2>go to cash, get out of the market. Pros, including

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<v Speaker 2>at the Hong Kong Shanghai Banking Corporation, say okay, you

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<v Speaker 2>got to participate, get over it. Max Kuttner in London

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<v Speaker 2>has been brilliant for HSBC and saying participate in the market.

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<v Speaker 2>He reaffirms that and even looks at a europe a

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<v Speaker 2>Germany flat on their back.

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<v Speaker 3>I think Europe, you know, we shouldn't throw in completely

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<v Speaker 3>the tile on that, particularly only equity the credit space.

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<v Speaker 4>Let's remember when you look at your high yield, you're

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<v Speaker 4>a highield nowadays is only six percent triple c's. We've

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<v Speaker 4>had two the fault waves already in the last four years.

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<v Speaker 4>So people trying to play politics, for example in eurocredit,

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<v Speaker 4>that doesn't work. You look at Euro's in equities. Look

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<v Speaker 4>at German equities.

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<v Speaker 3>You were just saying VW Well, German equities are up

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<v Speaker 3>more than twenty percent. Yeah, sure enough, they've been training

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<v Speaker 3>the SMP. That's not really a year where you'd be like,

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<v Speaker 3>oh my god, everything is in the doldrums.

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<v Speaker 4>Absolutely not. So we've got to remember that when we

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<v Speaker 4>buy German equities, you're not buying the politics. You're not

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<v Speaker 4>just buying the China baskets. What you're buying right now is.

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<v Speaker 3>The SAPs, the Infinians, the Ryan Mittel, Siemens energy. So

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<v Speaker 3>you're buying a bit of defense, you buy the AI story,

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<v Speaker 3>you're buying into tech. That's really what's driving German small

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<v Speaker 3>caps right here. They doesn't really have a lot to

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<v Speaker 3>do with the German elections.

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<v Speaker 2>I think Max Kutner enthusiastic there on finding value in

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<v Speaker 2>your proposal team, Oliver Crook and others in Europe watching

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<v Speaker 2>the important political developments in Germany. It's a FED week

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<v Speaker 2>on Wednesday. Course we'll do the FED show. Really looking

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<v Speaker 2>forward to that. Presume Ray cut yawn. Well, last time

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<v Speaker 2>it wasn't a y on. It was actually really really interesting.

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<v Speaker 2>I think we'll see more of the same there this week.

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<v Speaker 2>Across your commute across the nation, I should say an

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<v Speaker 2>Apple car play an Android auto. Good morning on Serious

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<v Speaker 2>XM on YouTube. Just thrilled at what we're doing. Subscribe

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<v Speaker 2>to Bloomberg Podcasts out on YouTube to get us each

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<v Speaker 2>and every morning and on YouTube podcasts. This is a

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<v Speaker 2>single best idea