Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Single best Idea. What are we doing here? We're trying
Speaker 2: to do a short podcast. Everybody's lined up like with
Speaker 2: The Big Take David Gura's Wonderment, but the Big Take,
Speaker 2: you know, twenty minutes, twenty five minutes, thirty minutes. We're
Speaker 2: trying to do it quick, three four five minute Single
Speaker 2: best idea. Where we do too. We should have been
Speaker 2: double best idea or single best ideas. Forget about it.
Speaker 2: It's single best idea. And it's just two vignettes from
Speaker 2: the wonderful set of guests we have. We always have
Speaker 2: too many to choose from. Rebecca Patterson stop by today
Speaker 2: to start us off strong on a fed week number
Speaker 2: of different teams. She walked in and said, look, I
Speaker 2: look strong dollar. I looked resilient dollar. But Rebecca Patterson said, really,
Speaker 2: the surprise out there could be not only resilient inflation
Speaker 2: or even elevated inflation, but more than that.
Speaker 1: Think about risks in the next year. And one risk
Speaker 1: that I think is on people's radar screens but maybe
Speaker 1: not enough, is a resurgence of inflation. And one area
Speaker 1: I think you want to watch is food inflation. US
Speaker 1: farmers are struggling right now. They can't get enough workers,
Speaker 1: and seventy percent of workers in US farming are immigrants,
Speaker 1: about half of those are illegal immigrants. If you reduce
Speaker 1: the workers, you can't get the crops out of the ground.
Speaker 1: Prices go up, profits go down. In addition to that, though,
Speaker 1: the tariffs are a big hit on US farmers. In
Speaker 1: twenty eighteen nineteen, those that year period alone, they lost
Speaker 1: twenty seven billion dollars in export revenue. Now, last time
Speaker 1: Trump failed them out, they got over eighty billion dollars
Speaker 1: in government subsidies. This time, they don't have as much
Speaker 1: free money flowing to hand out. So why do avocados
Speaker 1: come in the mix? Because percent of American avocados come
Speaker 1: from Mexico. And if we don't have people to get
Speaker 1: those avocados out of the ground here in California, and
Speaker 1: the tariffs on Mexico are causing some retaliation, avocados are
Speaker 1: going to become a luxury good.
Speaker 2: And Lisa Matteo weighed in on the use of avocado oil.
Speaker 2: I learned more about avocados today than I have in ages.
Speaker 2: They're very strong and very rich, and mac needs you.
Speaker 2: I didn't know that, you know, thank you Rebecca Patterson
Speaker 2: on avocados and on inflation as well. People don't say
Speaker 2: go to cash, get out of the market. Pros, including
Speaker 2: at the Hong Kong Shanghai Banking Corporation, say okay, you
Speaker 2: got to participate, get over it. Max Kuttner in London
Speaker 2: has been brilliant for HSBC and saying participate in the market.
Speaker 2: He reaffirms that and even looks at a europe a
Speaker 2: Germany flat on their back.
Speaker 3: I think Europe, you know, we shouldn't throw in completely
Speaker 3: the tile on that, particularly only equity the credit space.
Speaker 4: Let's remember when you look at your high yield, you're
Speaker 4: a highield nowadays is only six percent triple c's. We've
Speaker 4: had two the fault waves already in the last four years.
Speaker 4: So people trying to play politics, for example in eurocredit,
Speaker 4: that doesn't work. You look at Euro's in equities. Look
Speaker 4: at German equities.
Speaker 3: You were just saying VW Well, German equities are up
Speaker 3: more than twenty percent. Yeah, sure enough, they've been training
Speaker 3: the SMP. That's not really a year where you'd be like,
Speaker 3: oh my god, everything is in the doldrums.
Speaker 4: Absolutely not. So we've got to remember that when we
Speaker 4: buy German equities, you're not buying the politics. You're not
Speaker 4: just buying the China baskets. What you're buying right now is.
Speaker 3: The SAPs, the Infinians, the Ryan Mittel, Siemens energy. So
Speaker 3: you're buying a bit of defense, you buy the AI story,
Speaker 3: you're buying into tech. That's really what's driving German small
Speaker 3: caps right here. They doesn't really have a lot to
Speaker 3: do with the German elections.
Speaker 2: I think Max Kutner enthusiastic there on finding value in
Speaker 2: your proposal team, Oliver Crook and others in Europe watching
Speaker 2: the important political developments in Germany. It's a FED week
Speaker 2: on Wednesday. Course we'll do the FED show. Really looking
Speaker 2: forward to that. Presume Ray cut yawn. Well, last time
Speaker 2: it wasn't a y on. It was actually really really interesting.
Speaker 2: I think we'll see more of the same there this week.
Speaker 2: Across your commute across the nation, I should say an
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