WEBVTT - Avis Electric Cars Plans Creates Stock Flurry 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Carole Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovk. We're here every day bringing 0:00:07.320 --> 0:00:09.840 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.680 plus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.160 Week reporters and editors, not to mention our journalists and 0:00:17.160 --> 0:00:20.000 analyst in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.239 Bloomberg Business Week and iTunes, SoundCloud, or Bloomberg dot Com. 0:00:23.400 --> 0:00:25.200 You can also listen to our radio show at two 0:00:25.200 --> 0:00:27.880 pm Eastern Time on Bloomberg Radio, or watch us on 0:00:27.920 --> 0:00:31.960 YouTube search Bloomberg Global News. Let's get to it. One 0:00:32.000 --> 0:00:33.640 of the voices that we've turned to a lot during 0:00:33.640 --> 0:00:36.559 the health crisis, Dr Harold Pause. He is the executive 0:00:36.600 --> 0:00:40.320 vice president for Health Sciences at Stonybrook University, former Chancellor 0:00:40.520 --> 0:00:43.000 for Health Affairs at the Ohio State University, and CEO 0:00:43.040 --> 0:00:46.120 of Worsner Medical Center. Also a former Chief medical officer 0:00:46.120 --> 0:00:49.560 at ETNA. So he really understands so many different aspects 0:00:49.960 --> 0:00:52.480 of our healthcare and medical world and has been really, 0:00:52.520 --> 0:00:54.480 like I said, a great voice to us during the pandemic. 0:00:54.640 --> 0:00:57.120 He joins us on the phone from Stony Brook, New York. 0:00:57.160 --> 0:01:00.440 First of all, congratulations you're in a new position. Yes, 0:01:00.480 --> 0:01:02.760 thank you very much, Carol, I appreciate it. Hey, we 0:01:02.760 --> 0:01:04.679 were thinking, you know, on our planning call. We're just 0:01:04.720 --> 0:01:08.520 thinking about you going from you know, your position before 0:01:08.920 --> 0:01:11.920 and being in Ohio to now being in New York. 0:01:12.000 --> 0:01:14.360 What are I don't know, the differences in terms of 0:01:14.360 --> 0:01:18.560 what you're seeing about communication, the handling, and just the 0:01:18.600 --> 0:01:24.080 processes involving the pandemic. What's the same? Looks different? Yeah? Yeah, 0:01:24.160 --> 0:01:27.479 So I'm originally from New York and it's uh, it's 0:01:27.520 --> 0:01:30.120 great to be back. UM. I would say there are 0:01:30.160 --> 0:01:33.520 a lot of similarities, many many more similarities in terms 0:01:33.560 --> 0:01:38.399 of how the pandemic has been handled by the health 0:01:38.440 --> 0:01:42.800 care workforce, both both here and UM in Ohio. Uh, 0:01:42.840 --> 0:01:45.640 in terms of the number of individuals that have been tested, 0:01:45.720 --> 0:01:49.680 the number of vaccinations that have been offered. Here at 0:01:49.720 --> 0:01:55.040 Stony Brook Medicine, we've vaccinated over half a million individuals 0:01:55.080 --> 0:01:58.640 to date, and this week we're very very busy with 0:01:58.720 --> 0:02:02.240 the boosters for Maderna and and Johnson and Johnson in 0:02:02.280 --> 0:02:05.720 addition to Fiser so UM A lot of similarities in 0:02:05.840 --> 0:02:09.200 terms of vaccination and testing and certainly in terms of treatment, 0:02:09.480 --> 0:02:15.000 stony Brook Medicine has cared for UM hundreds and thousands 0:02:15.080 --> 0:02:18.080 of patients with COVID UH. At the peak there were 0:02:18.120 --> 0:02:21.679 over four hundred patients in the hospital with COVID and 0:02:22.000 --> 0:02:26.079 thousands have been cared for across across Long Island. So 0:02:26.480 --> 0:02:29.239 a great deal of similarities. I think. The other big 0:02:29.280 --> 0:02:32.960 similarity is is that as part of this research university 0:02:33.040 --> 0:02:36.200 stony Brook University, a lot of research work has been 0:02:36.240 --> 0:02:40.520 going on testing the vaccines, including you mentioned children of 0:02:40.520 --> 0:02:44.519 the Maderna vaccine has been tested here on children ages 0:02:44.840 --> 0:02:47.480 UM five to eleven and and just a lot of 0:02:47.520 --> 0:02:50.799 research work over two hundred and thirty research studies and 0:02:50.840 --> 0:02:56.240 clinical trials across Stonybrook Medicine and stony Brook University. Hey, 0:02:56.320 --> 0:02:58.560 dr pause, We want to go back to boosters before 0:02:58.600 --> 0:03:01.480 we talk about vaccines for kids who should get boosters 0:03:01.600 --> 0:03:05.079 right now? And in which boosters should they get? Well, 0:03:05.120 --> 0:03:07.280 you know, that's that's a great question, and you know 0:03:07.320 --> 0:03:11.959 there's CDC has been very clear about about boosters, particularly 0:03:12.000 --> 0:03:15.600 those who are sixty five and older, without a doubt, 0:03:15.639 --> 0:03:19.639 those that have certain types of medical conditions. UM, the 0:03:19.840 --> 0:03:24.040 whole question of mixing and matching UM boosters with the 0:03:24.080 --> 0:03:28.520 original vaccine is you know, is an open question. And um, 0:03:28.840 --> 0:03:32.480 I can tell you that I received my booster today 0:03:32.520 --> 0:03:35.400 as a matter of fact. And my thinking is is 0:03:35.440 --> 0:03:38.880 that if if I've received a vaccine and uh it 0:03:38.960 --> 0:03:41.680 worked well for me originally the first and second shot, 0:03:41.720 --> 0:03:44.040 if it was either Maderna or Visor, you know, I 0:03:44.080 --> 0:03:47.040 made the decision to go ahead and get Maderna for 0:03:47.160 --> 0:03:51.200 the booster as well. Uh. If someone had some reaction 0:03:51.320 --> 0:03:54.760 to a vaccine, then you know, certainly it would make 0:03:54.840 --> 0:03:57.920 sense to think about a booster a different booster than 0:03:57.960 --> 0:04:01.119 they originally received. But we're a waiting for the research 0:04:01.280 --> 0:04:05.680 to indicate if there is any advantage to mixing the 0:04:05.760 --> 0:04:10.000 booster later on from what they are originally received, and 0:04:10.160 --> 0:04:12.080 we're gonna need some research studies to show if that 0:04:12.200 --> 0:04:15.800 makes any sense or not. UM, But I would just 0:04:16.000 --> 0:04:20.120 underscore one thing most importantly, get the booster if you 0:04:20.240 --> 0:04:24.200 fit one of the categories that require you or suggest 0:04:24.240 --> 0:04:26.760 that you get the booster, because frankly, that's the most 0:04:26.800 --> 0:04:30.680 important thing, and worry less about trying to tailor it 0:04:30.800 --> 0:04:34.640 to the specific situation unless you are in the circumstances 0:04:34.720 --> 0:04:37.240 I described before. So do you not if you don't 0:04:37.240 --> 0:04:39.599 meet those circumstances, because we Tim and I have talked 0:04:39.600 --> 0:04:41.800 about we know individuals where you can basically walk into 0:04:41.839 --> 0:04:45.600 a pharmacy and get a shot, and it's pretty easy 0:04:45.600 --> 0:04:49.560 to get should you hold off? You know I've and 0:04:50.200 --> 0:04:54.640 I've practiced this myself because you know, I waited until 0:04:54.680 --> 0:04:57.920 this week to get the Maderna booster, and i have 0:04:58.000 --> 0:05:00.560 advised everyone in my family, and I've been asked many 0:05:00.600 --> 0:05:05.400 many times follow the CDC recommendations that that's how I've 0:05:06.000 --> 0:05:08.599 worked all through this pandemic. It makes a lot of 0:05:08.680 --> 0:05:11.400 sense to me because there are so many people looking 0:05:11.440 --> 0:05:14.400 at the data at the FDA and the CDC in 0:05:14.440 --> 0:05:17.400 real time and are being guided by the science. And 0:05:17.800 --> 0:05:21.320 I think for all of us dealing with so much information, 0:05:21.480 --> 0:05:23.719 so many reports that they hear in the media, what 0:05:23.800 --> 0:05:26.960 they hear from from neighbors, even I think the one 0:05:27.000 --> 0:05:30.160 thing that is consistent is is that we should try 0:05:30.160 --> 0:05:32.960 to depend as much as we can on the information 0:05:33.000 --> 0:05:37.440 that's available from our physicians, from our local healthcare workers 0:05:37.480 --> 0:05:42.440 that care for us, and from organizations that have access 0:05:42.440 --> 0:05:44.800 to huge amounts of data. All Right, that's a good 0:05:45.080 --> 0:05:47.680 final thought in an important one, Hey, thank you so 0:05:47.760 --> 0:05:50.960 much and congratulations again. Dr Harold Pause. He is the 0:05:50.960 --> 0:05:55.000 executive vice president for Health Sciences at Stonybrook University. Joining 0:05:55.080 --> 0:05:57.520 us on the phone from stony Brook US some really 0:05:57.560 --> 0:06:00.760 clear thinking that is. I have to tell you I 0:06:00.760 --> 0:06:04.080 have a friend who yesterday his they're both vaccinated. His 0:06:04.440 --> 0:06:07.920 wife has a breakthrough case and she's symptomatic. He got 0:06:07.920 --> 0:06:10.600 a PCR test, he's negative, and he's not finding a 0:06:10.640 --> 0:06:12.920 lot of answers for what should he do right now? 0:06:13.160 --> 0:06:15.520 Should he where should he be? Where should she be? 0:06:16.000 --> 0:06:19.280 How does he stay negative? How long is she infected? 0:06:19.760 --> 0:06:22.000 How long does she have this for? There's still so 0:06:22.040 --> 0:06:25.080 many wearing masks, like what are they doing? He's texting 0:06:25.120 --> 0:06:28.000 me all these questions and I say to talk to 0:06:28.040 --> 0:06:32.240 your doctor. This is Bloomberg Business Week with Carol Messer 0:06:32.480 --> 0:06:37.000 and Bloomberg Quick Takes Tim Stinovich from Bloomberg Radio. Right now, 0:06:37.040 --> 0:06:38.760 we got to talk about what's going on with car 0:06:38.800 --> 0:06:42.360 We're talking about Avis budget group up and ten percent. Meantime, 0:06:42.400 --> 0:06:46.320 we're seeing Tesla under pressure, although it's still skyrocketing so 0:06:46.400 --> 0:06:48.240 far in this year. So let's get to it. What 0:06:48.520 --> 0:06:51.800 is going on? Bloomberg News West Coast correspondent Ed Ludlow 0:06:52.200 --> 0:06:54.120 is on it joining us. If you're watching on YouTube, 0:06:54.120 --> 0:06:56.640 he's in our San Francisco bureau. Smile for the cameras. No, 0:06:56.720 --> 0:07:01.080 I'm just kicking so Tesla down. Although it's been on 0:07:01.120 --> 0:07:04.440 a tear this year, Avis off the charts. You know, 0:07:04.720 --> 0:07:07.919 there's definitely uh, what is it? I feel like the 0:07:07.960 --> 0:07:10.360 trading platform is getting in play on that. On what's 0:07:10.360 --> 0:07:12.960 going on for it? Yeah, there's a lot to unpack, 0:07:13.000 --> 0:07:15.280 and it is all links. You know. For Advis's part, 0:07:15.440 --> 0:07:19.240 they had earnings strong top and bottom line performance, but 0:07:19.320 --> 0:07:23.440 at one point the stock was up, so you ask yourself, 0:07:24.080 --> 0:07:26.680 you know, no market pare's that much attention to the 0:07:26.680 --> 0:07:29.560 fundamentals that they make a bi call to send a 0:07:29.600 --> 0:07:32.520 stock up to an eighteen percent So you know, we 0:07:32.560 --> 0:07:34.120 know there's a lot going on here. We know the 0:07:34.160 --> 0:07:37.240 retail trader has come in. If you look at stock twits, 0:07:37.280 --> 0:07:39.400 if you look at Wall Street bets on Reddit, you 0:07:39.440 --> 0:07:44.280 know Avis is being mentioned with high frequency. Another factor 0:07:44.320 --> 0:07:46.880 at play here is that short interests is about twenty 0:07:46.880 --> 0:07:51.160 one of the float according to his three partners data. 0:07:51.440 --> 0:07:53.760 So there's a lot to unpack. But what it all 0:07:53.800 --> 0:07:57.560 ties to it appears is comments that executives made on 0:07:57.600 --> 0:08:01.360 the call about Avis's ev ambitions in the context, of 0:08:01.360 --> 0:08:04.960 course of that Hurts Tesla order that we we've known 0:08:04.960 --> 0:08:06.760 about for the last week. Yeah, more on that in 0:08:06.880 --> 0:08:08.920 just a minute, in the context of Tesla, of course. 0:08:08.960 --> 0:08:12.880 But AVIS didn't actually talk about any plans to add 0:08:12.880 --> 0:08:16.320 evs to its fleet though, right, No they didn't. So 0:08:16.560 --> 0:08:18.120 I'm just gonna bring up the full quote here and 0:08:18.160 --> 0:08:19.720 what I do that what I'll say is that they 0:08:19.760 --> 0:08:23.640 basically said they're committed to electrification, right and that you 0:08:23.680 --> 0:08:27.880 would see in time them add evis to their fleets. 0:08:27.920 --> 0:08:34.280 But they essentially through shade at Hurts. I mean, well, 0:08:34.320 --> 0:08:35.800 I don't want to call it shade myself. I'm just 0:08:35.800 --> 0:08:38.320 gonna read it to you, the comments from Brian Choi, 0:08:38.760 --> 0:08:41.400 CFO of AVIS. The reason you haven't heard from us 0:08:41.440 --> 0:08:45.480 publicly is because, for competitive reasons, we like to execute 0:08:45.520 --> 0:08:50.520 on our strategy before announcing it. I mean, without it 0:08:50.559 --> 0:08:53.800 with Tom Brady. Without Tom Brady, that kind of sounds 0:08:53.800 --> 0:08:57.439 like shade or or it's like, oh darn, they got 0:08:57.440 --> 0:08:59.520 out ahead of us, like you know, you do wonder 0:09:00.200 --> 0:09:03.040 and this is a very competitive world in the auto space. 0:09:03.120 --> 0:09:05.120 Right now, and it does feel like our better off. 0:09:06.080 --> 0:09:09.600 It's changing as we move from the combustion engine to 0:09:10.320 --> 0:09:13.720 write e vs and so on, and so everybody's looking 0:09:13.720 --> 0:09:16.840 to have that first mover advantage like a Tesla. Yeah, 0:09:17.080 --> 0:09:19.040 there's definitely a school of thought as well that car 0:09:19.040 --> 0:09:21.600 rental companies have a role to play with e V adoption. 0:09:21.720 --> 0:09:23.960 You know, there are lots of consumers out there who 0:09:24.000 --> 0:09:26.960 are still nervous about owning an e V, whether that's 0:09:27.120 --> 0:09:30.240 range anxiety, whether it's literally about how you pull that 0:09:30.320 --> 0:09:32.760 off if you can't install a charger in your home. 0:09:33.160 --> 0:09:35.400 So the idea that you could experience what it's like 0:09:35.480 --> 0:09:37.760 to drive and us an electric vehicle for a car 0:09:37.760 --> 0:09:43.160 rental company is important. You know, market analysts and commentators say, um, 0:09:43.200 --> 0:09:45.480 what it all links back to when it comes to 0:09:45.520 --> 0:09:49.280 testa and hurts those remember every player, Tesla being the leader, 0:09:49.360 --> 0:09:53.040 the others chasing the pack. Our supply constraint, there's you know, 0:09:53.080 --> 0:09:56.640 they can't build enough electric vehicles to quickly hand over 0:09:56.640 --> 0:09:58.880 the keys to a hundred thousand cars. It's just not 0:09:58.920 --> 0:10:02.600 going to happen tomorrow. And even Elon Musk tweeting about 0:10:02.640 --> 0:10:07.360 this last night in response to a question about why 0:10:07.440 --> 0:10:10.400 about the company's stock, He said that if any of 0:10:10.400 --> 0:10:12.360 this is based on Hurts, I'd like to emphasize that 0:10:12.400 --> 0:10:14.959 no contract has been signed yet. Tesla has far more 0:10:15.000 --> 0:10:17.280 demand than production. Therefore, we will only sell cars to 0:10:17.400 --> 0:10:19.960 Hurts for the same margin as to consumers. Hurts deal 0:10:19.960 --> 0:10:23.440 has zero effect on our economics. And in essentially saying 0:10:23.440 --> 0:10:25.520 the contract is not signed yet, and as a result, 0:10:25.520 --> 0:10:29.280 Tesla shares down close to four percent. Well, it's semantics, 0:10:29.600 --> 0:10:32.560 he says, Yet the contracts not signed yet, but you 0:10:32.600 --> 0:10:35.000 know there's clearly agreement in place. You know, Hurts has 0:10:35.000 --> 0:10:37.560 got its own troubles, it's coming out of bankruptcy. You 0:10:37.559 --> 0:10:40.960 know it made an official announcement about this. But again, 0:10:40.960 --> 0:10:43.640 this comes back to the idea Tesla is supply constrained. 0:10:43.960 --> 0:10:46.400 It cannot build enough vehicles to meet demand. If you 0:10:46.400 --> 0:10:48.680 go on this testa website right now and try to 0:10:48.760 --> 0:10:51.120 order yourself a Model three or a Model Why, it 0:10:51.160 --> 0:10:54.200 will give you an estimated date for when you'll receive it. 0:10:54.440 --> 0:10:57.120 That can be a matter of months, months and months away. 0:10:57.440 --> 0:10:59.880 And you know, Elon Musk is very close to retail trade. 0:11:00.040 --> 0:11:03.240 He communicates often with Tesla owners and if you read 0:11:03.520 --> 0:11:05.440 the quote in full as you did. Tim. You know 0:11:05.440 --> 0:11:07.800 it seems very much like LA must saying we're not 0:11:07.960 --> 0:11:14.360 prioritizing the corporate empity hurts over our existing customers. Fascinating story. 0:11:14.400 --> 0:11:16.679 Just to watch the ups and downs of all this again, 0:11:16.880 --> 0:11:20.600 uh Avis. Right now Tesla down just about four percent. Thanks. 0:11:20.600 --> 0:11:24.720 I'd love the West Coast correspondent for Bloomberg. You're listening 0:11:24.760 --> 0:11:28.600 to Bloomberg Business Week with Carol Masser and Bloomberg Quick 0:11:28.640 --> 0:11:32.679 Takes Tim Stinovic on Bloomberg Radio. This is among the 0:11:32.760 --> 0:11:34.640 most read on the Bloomberg today. It's about the one 0:11:34.679 --> 0:11:37.160 trader of that calls all the shots in the treasury 0:11:37.160 --> 0:11:39.439 bond market. It's a story in the upcoming issue of 0:11:39.440 --> 0:11:42.040 Bloomberg business Week magazine out later this week. On the 0:11:42.040 --> 0:11:44.600 Bloomberg and of course at business week dot com. Joel 0:11:44.600 --> 0:11:46.480 Weber is at her at Bloomberg business Week. He's with 0:11:46.520 --> 0:11:49.920 us in the Bloomberg Interactive Broker Studio. Liz McCormick is 0:11:50.000 --> 0:11:55.960 bond and FX reporter at Bloomberg News. Joel, take us, 0:11:56.120 --> 0:11:57.800 give us a history lesson here and take us back 0:11:57.800 --> 0:11:59.760 to who the bond vigilantes work. What's upon a time 0:11:59.800 --> 0:12:02.120 on a bount of time. H not sus that the 0:12:02.200 --> 0:12:07.839 universe controlled basically, um, you know, the pricing, and they 0:12:07.840 --> 0:12:12.040 had pricing power and could actually exert that influence on government. 0:12:12.600 --> 0:12:16.600 And uh in the in the Clinton administration especially uh 0:12:16.960 --> 0:12:19.080 kind of memorable moment that we had in the draft 0:12:19.400 --> 0:12:22.400 um uh an earlier draft was how James Carver was like, 0:12:22.440 --> 0:12:24.760 I know nothing about the bond market, but like these 0:12:24.840 --> 0:12:30.240 vigilantes and times have changed, right listen, Oh yeah, a 0:12:30.240 --> 0:12:32.920 lot of change. And that was a great comment he 0:12:33.000 --> 0:12:35.240 made because then it was like they kind of pushed 0:12:35.280 --> 0:12:38.880 Clinton around to change his his agenda and the bond market. 0:12:39.440 --> 0:12:41.439 You know, the Feds the game in town now on 0:12:41.480 --> 0:12:43.680 the bond market. Of course, there's been a lot going 0:12:43.720 --> 0:12:46.120 on which you've all been talking about through the days. 0:12:46.200 --> 0:12:49.520 But still the Fed owns five point five trillion in treasuries, 0:12:49.600 --> 0:12:52.920 so they go a long way as far as keeping 0:12:53.000 --> 0:12:55.520 a lid on rates and you know, just seeing where 0:12:55.600 --> 0:12:58.600 rates can go, and they play play a major role. 0:12:58.920 --> 0:13:01.959 I think of Edyard Jenny years ago, right and that 0:13:02.200 --> 0:13:06.199 you know, and and coining that term, I believe bond vigilante. Uh. 0:13:06.200 --> 0:13:08.200 And this is what's interesting and lets you see it 0:13:08.240 --> 0:13:12.000 in the bond market are the treasury market for years, 0:13:12.040 --> 0:13:14.080 it doesn't feel like it moves a whole heck of 0:13:14.120 --> 0:13:16.920 a lot. And you gave some you know, great perspective 0:13:17.280 --> 0:13:21.480 of younger treasury traders today versus older treasury trades when 0:13:21.520 --> 0:13:26.080 there really was volatility in the treasury market, right. Yeah. 0:13:26.080 --> 0:13:28.640 I mean John Kirshner, who talked to me from James Henderson. 0:13:28.720 --> 0:13:31.480 I thought was funny because he's like, listen, you know, 0:13:31.640 --> 0:13:34.040 with all due respect to the newer people, like people 0:13:34.120 --> 0:13:36.880 getting all jazzed about what's going on. I remember when 0:13:36.880 --> 0:13:40.120 we really had these moves, and you know, and then 0:13:40.160 --> 0:13:42.200 you kind of get so exciting and you look at him. 0:13:42.240 --> 0:13:45.000 My goodness, the tenure treasury yields only at one point 0:13:45.040 --> 0:13:48.720 five five, you know, it's just kind of amazing. So yeah, 0:13:49.080 --> 0:13:51.720 you just don't have the volatility, and that's part of 0:13:51.720 --> 0:13:53.800 what the Fed wants, you know, part of their scheme 0:13:53.840 --> 0:13:57.800 of keeping things calm is less volatility is usually good 0:13:57.840 --> 0:14:01.120 for them. I mean, we've seen some lately, but but 0:14:01.240 --> 0:14:03.160 I I know people, we have a few in here, 0:14:03.160 --> 0:14:05.360 and I know others not that I didn't mention that 0:14:05.559 --> 0:14:07.880 through the year, So I'm getting out of this. You know, 0:14:08.040 --> 0:14:09.920 it's just as you can't trade the way you used 0:14:09.960 --> 0:14:12.600 to and it's just not the same business for them. 0:14:13.160 --> 0:14:17.280 So what happens at Tin Tin every morning, Well, the 0:14:17.400 --> 0:14:20.120 said does these operations which is all public. This is 0:14:20.120 --> 0:14:22.640 no secret. They laying out on their website. This is 0:14:22.680 --> 0:14:25.960 part of their quantitative easing. But they go in they tell, 0:14:26.160 --> 0:14:28.200 you know, it's all laid out two dealers what they're 0:14:28.200 --> 0:14:30.400 going to be buying, and the said, you know, not 0:14:30.480 --> 0:14:32.720 to say that they don't use their pricing models to 0:14:32.720 --> 0:14:34.720 where to go. But it's not like they're you know 0:14:34.800 --> 0:14:37.880 in the marketplace, you know, bidding and offering and you 0:14:37.880 --> 0:14:40.320 know people are cajoling them, you know, where we want 0:14:40.360 --> 0:14:42.160 to do it. It's you know, a pretty set thing. 0:14:42.240 --> 0:14:44.520 But they you know, for a while now, especially you 0:14:44.520 --> 0:14:48.640 know since March when the pandemic unfortunately kind of struck, 0:14:49.000 --> 0:14:51.400 they've been a major role. I mean, they still had 0:14:51.440 --> 0:14:53.720 a lot of bonds going into that because they hadn't 0:14:53.720 --> 0:14:56.360 gotten them down after the Great Financial Crisis, how much 0:14:56.400 --> 0:14:58.960 death they held. But then they came in and now 0:14:59.000 --> 0:15:01.960 they've bought a couple trillions sins. So yeah, every day, 0:15:02.080 --> 0:15:04.440 most every days, you know their operations and we know 0:15:04.600 --> 0:15:06.320 we you know, as you know, we have a FED 0:15:06.400 --> 0:15:09.040 meeting tomorrow, so they might announce that they're going to 0:15:09.120 --> 0:15:12.920 scale back these purchases, but that's probably gonna take, you know, 0:15:13.080 --> 0:15:15.480 till mid next year, till they stop, and then they'll 0:15:15.480 --> 0:15:17.400 just be rolling them over, which they do in a 0:15:17.400 --> 0:15:20.600 different way, but they're just not going away as a source, 0:15:21.120 --> 0:15:24.160 you know, for a long while. I'm wondering, Lizzen, you 0:15:24.240 --> 0:15:27.440 write about this in your piece for Bloomberg Business Week, 0:15:27.480 --> 0:15:30.120 what's writing on a FED chair Powell's gamble that the 0:15:30.160 --> 0:15:33.360 surgeon inflation is just transitory, a word that I expect 0:15:33.360 --> 0:15:35.880 will hear several times tomorrow when you hear from the 0:15:35.880 --> 0:15:38.680 FED chair. Yeah, and I think they've tried to kind 0:15:38.720 --> 0:15:41.000 of what was one of the FED officials said, can 0:15:41.040 --> 0:15:43.520 we retire this word? As I think it's causing them 0:15:43.560 --> 0:15:47.080 trouble because the transitory is lasted longer. But there is 0:15:47.120 --> 0:15:49.960 a lot riding on. And you know that the market 0:15:49.960 --> 0:15:52.640 has even priced in a little bit more hawkish moves 0:15:52.680 --> 0:15:55.000 as far as tightening next year than they had a 0:15:55.000 --> 0:15:57.760 few months ago. So there is a lot riding on, 0:15:57.920 --> 0:16:00.360 you know, especially Pal six to his guns and says, 0:16:00.440 --> 0:16:02.960 you know, we do yeah, it's lingered a little longer, 0:16:03.000 --> 0:16:05.040 but we think it's a lot of the supply chain 0:16:05.240 --> 0:16:08.200 and temporary stuff and it's going to pass. And if 0:16:08.200 --> 0:16:10.680 the market doesn't think, you know, the FED will move 0:16:10.760 --> 0:16:13.160 if they need to. You know, the big, big role 0:16:13.160 --> 0:16:16.400 of any central bank is to contain inflation. Then we could, 0:16:16.480 --> 0:16:18.760 you know, see things, you know, kind of get ginned 0:16:18.800 --> 0:16:20.720 up even more. So. I think a lot is writing 0:16:20.760 --> 0:16:23.640 he's got a tough maneuver because they do want a 0:16:23.680 --> 0:16:27.240 more broad and inclusive employment mandate, you know, which makes 0:16:27.280 --> 0:16:29.120 a lot of sense. So they don't want to crimp 0:16:29.120 --> 0:16:31.520 off the economy, but they don't want to lose their 0:16:31.520 --> 0:16:34.280 credibility and fighting inflation. So you know, I wouldn't want 0:16:34.280 --> 0:16:37.320 to be him tomorrow. So Liz, you you got to 0:16:37.360 --> 0:16:40.040 speak to um. A lot of a lot of folks 0:16:40.080 --> 0:16:42.960 in this world, some of whom you know, we're from 0:16:42.920 --> 0:16:46.680 a former bund Villgilantes are still all I guess what's 0:16:46.720 --> 0:16:51.840 the what's the mood into tomorrow, Joel? In general? Yeah, 0:16:51.960 --> 0:16:55.160 in general? But yeah, yeah, well I'll talk a little 0:16:55.160 --> 0:16:57.960 bit about both. Well. I think I think into tomorrow 0:16:58.200 --> 0:17:00.560 it's um. I think people are wondering ing, you know, 0:17:00.760 --> 0:17:03.640 there's different camps. Some people feel like he's got a 0:17:03.680 --> 0:17:06.200 push back on this kind of hawker is tilt in 0:17:06.240 --> 0:17:09.159 the marketplace, some people feeling he has to kind of 0:17:09.200 --> 0:17:12.040 hold his guns that you know, we're going to keep 0:17:12.040 --> 0:17:15.640 being easy for a while. And I think in the marketplace, 0:17:15.680 --> 0:17:19.600 it's just a different marketplace, like we've been talking about, like, um, 0:17:19.640 --> 0:17:22.720 you know, I just speak to Jack valley Um during 0:17:22.720 --> 0:17:25.240 this story, who's been around for a long time, and 0:17:25.280 --> 0:17:28.000 he was talking about it's just a commoditized market. You know, 0:17:28.040 --> 0:17:30.560 the treasury market is a different marketplace. So I think 0:17:30.840 --> 0:17:32.959 some of the mood is. I mean, there's a lot 0:17:33.000 --> 0:17:35.400 of interesting trades you can do, but it's just not 0:17:35.520 --> 0:17:38.000 the same you know. Wow, you know, bon yields went 0:17:38.080 --> 0:17:41.960 a hundred basis points today, et cetera like yester year. Well, 0:17:42.000 --> 0:17:46.159 and Liz, I guess bottom line, especially the old guys 0:17:46.240 --> 0:17:50.560 the stages, do they think it's a better treasury market 0:17:50.880 --> 0:17:54.399 or not with the FED being such a significant player 0:17:54.440 --> 0:17:58.160 and for so long, Well, I think Caroline depends on 0:17:58.200 --> 0:18:01.119 what avenue of their business they're in. If they you know, 0:18:01.200 --> 0:18:04.480 are more the economic side and think, you know, you know, 0:18:04.880 --> 0:18:08.640 it has really helped, you know, engender growth and things. 0:18:08.640 --> 0:18:11.560 Because stability is good for companies who know where their 0:18:11.600 --> 0:18:14.120 interest rate levels are going to be, where they can borrow. 0:18:14.440 --> 0:18:17.720 It's the positive for those who are like floor trading 0:18:17.760 --> 0:18:21.240 and doing other things. You know, it hasn't been so 0:18:21.240 --> 0:18:23.720 so good. Even some of the sales people I've heard complain, 0:18:23.800 --> 0:18:25.320 you know, on the bond desk. You know, that's just 0:18:25.359 --> 0:18:28.200 not as much activity through the last decade. Um. So 0:18:28.480 --> 0:18:33.320 I think it depends on where you're sitting. Yeah, and 0:18:33.359 --> 0:18:35.760 with something that you can find them on. I'm sure 0:18:36.320 --> 0:18:38.280 it's real quick. Just what a wrapping up? What are 0:18:38.280 --> 0:18:43.000 we missing by not having them be such a dominant force? Well, 0:18:43.400 --> 0:18:47.440 I would say people like Edgardenny and some others would say, 0:18:47.600 --> 0:18:49.879 you know, if they're not, then that might give the 0:18:49.920 --> 0:18:52.520 Fed a little more rooms. Let's just say, who are 0:18:52.560 --> 0:18:55.000 not saying that like projecting it that the Fed like 0:18:55.119 --> 0:18:57.440 let inflation run too hot, that the risk is it 0:18:57.520 --> 0:19:00.240 runs away, right, and then they can't put tampa ound, 0:19:00.320 --> 0:19:03.320 so the bond vigilantes are slower to push back. The 0:19:03.359 --> 0:19:05.560 said has some more Leewood got it, and you end 0:19:05.600 --> 0:19:08.679 up with more inflation. Gotta run Always important reporting when 0:19:08.720 --> 0:19:14.040 Liz McCormick's on the case. I'm roa yeah, but you 0:19:14.119 --> 0:19:16.480 let me drive? Oh no, no, no, no, this is 0:19:16.520 --> 0:19:27.640 not a right. Please, I want to drive. It's good question. Drive. 0:19:30.480 --> 0:19:36.879 This is the Drive to the Clothes on Bluebird Radio. 0:19:37.400 --> 0:19:39.440 All right, everybody, let's get to it. We've just got 0:19:39.440 --> 0:19:41.840 about thirteen minutes left in today's trading session. We are 0:19:41.920 --> 0:19:45.240 so delighted to have actually in our Interactive Broker studio 0:19:45.359 --> 0:19:47.520 a friend of the show and Miletti. She's head of 0:19:47.520 --> 0:19:50.800 active equity at all Spring Global Investments. They've got some 0:19:51.920 --> 0:19:54.479 seven billion in assets under management. She's with us. As 0:19:54.520 --> 0:19:58.440 I said in studio, how are you. I'm great. It's 0:19:58.520 --> 0:20:01.400 great to be back in studios to see you here. 0:20:01.400 --> 0:20:04.440 It's just a reminder that things are continuing to reopen, 0:20:04.480 --> 0:20:06.640 and I feel like the equity markets, there's a lot 0:20:06.640 --> 0:20:09.720 of enthusiasm still that the world is, you know, continuing 0:20:09.760 --> 0:20:12.000 to kind of make its way back to normal. It 0:20:12.040 --> 0:20:14.159 does feel that way, and it's the equity markets have 0:20:14.240 --> 0:20:17.680 been predicting it far sooner than we all have, so 0:20:18.359 --> 0:20:21.320 it's amazing they still are continuing. Before we get to 0:20:21.480 --> 0:20:23.280 discussion of the equity markets, we've got to talk about 0:20:23.280 --> 0:20:26.480 the big news because Walls Fargo Asset Management, which for 0:20:26.520 --> 0:20:30.160 all intensive purposes you worked for before, has been rebranded 0:20:30.160 --> 0:20:34.600 now uh, just starting off operations right now as an 0:20:34.640 --> 0:20:38.800 independent company now owned by GTCR and Reverence Capital. What 0:20:38.840 --> 0:20:42.320 are the differences. It's just such. It's such an exciting 0:20:42.359 --> 0:20:45.160 time for us because we do get to re emerge 0:20:46.080 --> 0:20:50.120 as an independent asset manager. I think that is truly 0:20:50.200 --> 0:20:52.600 the big difference. We have scale. We have all of 0:20:52.600 --> 0:20:55.000 that scale we had over at Walls Fargo, but we 0:20:55.040 --> 0:20:59.920 get to bring it now to all spring um independent 0:21:00.000 --> 0:21:03.240 company with a sole focus on our clients and houset management. 0:21:03.320 --> 0:21:06.240 So great time, especially with all the moving pieces in 0:21:06.280 --> 0:21:08.040 her industry. Well, there is something to be said, and 0:21:08.040 --> 0:21:10.080 I was reading a descriptive phrase that said pure play 0:21:10.119 --> 0:21:13.560 independent asset management manager. There is something and right to 0:21:13.600 --> 0:21:16.000 be said that where you can just really focus on 0:21:16.160 --> 0:21:19.919