1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,520 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,439 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,880 Speaker 1: at Bloomberg dot com slash podcast. Well, auto retailer Auto 7 00:00:23,000 --> 00:00:27,240 Speaker 1: Nation reported this morning earnings better than expected. Stock is reacting. 8 00:00:27,240 --> 00:00:29,400 Speaker 1: It's up three point three percent today and over the 9 00:00:29,440 --> 00:00:32,040 Speaker 1: trailing twelve months, stock of all donation is up seven 10 00:00:32,320 --> 00:00:35,720 Speaker 1: percent seven zero percent, So certainly a good run there. 11 00:00:35,920 --> 00:00:39,400 Speaker 1: Let's get some color on the quarter and the strategy 12 00:00:39,440 --> 00:00:41,760 Speaker 1: going forward for Auto Nation. We do that with Mike Jackson. 13 00:00:42,040 --> 00:00:45,080 Speaker 1: He's the CEO of Auto Nation. Mike, thanks so much 14 00:00:45,120 --> 00:00:48,080 Speaker 1: for joining us here. Good quarter this morning, You beat 15 00:00:48,120 --> 00:00:50,800 Speaker 1: on revenue, beat on EPs. What were the key drivers 16 00:00:50,840 --> 00:00:53,360 Speaker 1: in the quarter for you? Yeah, not only was it 17 00:00:53,400 --> 00:00:55,280 Speaker 1: a good quarter, was the best quarter of all time. 18 00:00:55,360 --> 00:00:58,080 Speaker 1: So are you. And that's back to back best quarters 19 00:00:58,080 --> 00:01:03,040 Speaker 1: of all time. So the um environment is very good 20 00:01:03,160 --> 00:01:07,440 Speaker 1: for auto retail. Whether there is unquestionably significant economic pain 21 00:01:07,680 --> 00:01:11,280 Speaker 1: out there in America, which is difficult to watch in 22 00:01:11,880 --> 00:01:16,399 Speaker 1: housing or auto retail. UH, there's been a reallocation of 23 00:01:16,440 --> 00:01:19,520 Speaker 1: the pocketbook UH towards the space you live in, in 24 00:01:19,560 --> 00:01:21,920 Speaker 1: the space you move around it. And people want personal 25 00:01:21,959 --> 00:01:24,680 Speaker 1: space that that is nice and comfortable and they control. 26 00:01:25,400 --> 00:01:29,919 Speaker 1: And you combine that with very attractive interest rates available 27 00:01:29,959 --> 00:01:32,880 Speaker 1: and affordable gasoline and all the stimulusts that's going into 28 00:01:32,920 --> 00:01:37,720 Speaker 1: the economy UH for auto retail and UH and the 29 00:01:37,760 --> 00:01:41,600 Speaker 1: demand for automobiles. It's very strong within that auto nation 30 00:01:41,920 --> 00:01:47,080 Speaker 1: is outperforming the marketplace. We have a terrific brand, a 31 00:01:47,200 --> 00:01:52,080 Speaker 1: great customer experience, digital capability that's remarkable. And if I 32 00:01:52,120 --> 00:01:54,920 Speaker 1: look at just our pre owned business, our revenue was 33 00:01:55,040 --> 00:01:59,360 Speaker 1: up twelve in the quarter UH, and overall pre owned 34 00:01:59,520 --> 00:02:03,840 Speaker 1: was probably flat for the industry, maybe even slightly down. Mike, 35 00:02:03,840 --> 00:02:07,440 Speaker 1: whyatt Why Why is pre owned doing better than new 36 00:02:07,480 --> 00:02:10,920 Speaker 1: car sales right now? Well, pre owned has always been 37 00:02:10,919 --> 00:02:14,320 Speaker 1: a larger marketplace the new The new retail markets around 38 00:02:14,320 --> 00:02:17,520 Speaker 1: fourteen million a year some years fifteen, and pre owned 39 00:02:17,560 --> 00:02:21,600 Speaker 1: is between thirty five and forty each year. So the 40 00:02:21,680 --> 00:02:26,560 Speaker 1: demand is strong across the entire spectrum of personal vehicles. 41 00:02:26,560 --> 00:02:29,160 Speaker 1: From a price point of five thousand dollars through four 42 00:02:29,560 --> 00:02:32,799 Speaker 1: thousand dollars. I mean people want personal space. That is 43 00:02:32,840 --> 00:02:35,680 Speaker 1: what they're clamoring for now. On the new vehicle side, 44 00:02:35,680 --> 00:02:39,359 Speaker 1: there is a production disruption that was triggered by the 45 00:02:39,360 --> 00:02:44,080 Speaker 1: pandemic and now has been further complicated with a competition 46 00:02:44,160 --> 00:02:48,280 Speaker 1: for chips and uh, the auto industry getting uh the 47 00:02:48,360 --> 00:02:52,160 Speaker 1: short end of the stick as people spending more time 48 00:02:52,200 --> 00:02:57,600 Speaker 1: in her home want more personal entertainment instruments. Um, and 49 00:02:57,639 --> 00:03:00,080 Speaker 1: those chips are going into those industries rather than the 50 00:03:00,080 --> 00:03:04,920 Speaker 1: automobile industry, and production is constrained. For me, there's no 51 00:03:05,000 --> 00:03:09,680 Speaker 1: personal entertainment instrument like a Porsche nine eleven. Uh. That 52 00:03:09,760 --> 00:03:12,720 Speaker 1: gives me your hat too. There. I fully agree you're 53 00:03:12,720 --> 00:03:15,240 Speaker 1: in my camp. Whenever I get in a bad mood, 54 00:03:15,280 --> 00:03:17,560 Speaker 1: I take the keys and say, I I'm getting in 55 00:03:17,639 --> 00:03:20,040 Speaker 1: my nine eleven. I'm going to do a few laps. 56 00:03:20,840 --> 00:03:25,960 Speaker 1: It is. I'm sure my face. I'm sure. Also well deserved, Mike. 57 00:03:26,000 --> 00:03:28,240 Speaker 1: You've done such a great job leading the company. The 58 00:03:28,280 --> 00:03:31,639 Speaker 1: stock is just off the charts right now. Um, you're 59 00:03:31,639 --> 00:03:35,320 Speaker 1: gonna step down as CEO Nick next April. Have you 60 00:03:35,360 --> 00:03:39,280 Speaker 1: found a successor No, But we've we've begun this process 61 00:03:39,280 --> 00:03:42,520 Speaker 1: in the following sense. It's really two successions on both 62 00:03:42,600 --> 00:03:45,880 Speaker 1: chairman and CEO, and we said over a year ago 63 00:03:46,360 --> 00:03:49,800 Speaker 1: that when the time comes, we would have separate instinct 64 00:03:49,920 --> 00:03:53,360 Speaker 1: independent chairman and the new CEO. Now, since we already 65 00:03:53,360 --> 00:03:55,480 Speaker 1: know who the chairman is going to be, the board 66 00:03:55,520 --> 00:04:00,280 Speaker 1: met yesterday and selected and elected Rick Burdick as the Erman, 67 00:04:00,640 --> 00:04:03,640 Speaker 1: assuming my responsibilities. Rick has been a director for the 68 00:04:03,680 --> 00:04:06,960 Speaker 1: company third thirty years. He's been a lead director for 69 00:04:07,000 --> 00:04:10,480 Speaker 1: the last several years. He's widely known and respected within 70 00:04:10,520 --> 00:04:13,200 Speaker 1: the company, so we had half the answer to the 71 00:04:13,280 --> 00:04:17,480 Speaker 1: question there. Rick is going to lead the selection team 72 00:04:17,480 --> 00:04:20,320 Speaker 1: which will kick off in the spring for a new CEO, 73 00:04:21,000 --> 00:04:24,039 Speaker 1: and the timing is really you can't bring in in 74 00:04:24,360 --> 00:04:29,560 Speaker 1: a new CEO without the resumption of robust travel and meetings. 75 00:04:29,600 --> 00:04:31,479 Speaker 1: I mean, I can do the Wizard of Os thing 76 00:04:31,600 --> 00:04:34,279 Speaker 1: behind the curtain because everybody knows me. Just pick up 77 00:04:34,320 --> 00:04:35,960 Speaker 1: the phone or do a zoom call and I can 78 00:04:36,680 --> 00:04:39,280 Speaker 1: uh and everybody most of the time does what I say. 79 00:04:39,880 --> 00:04:43,200 Speaker 1: So it's wonderful. But you're new, and this is something 80 00:04:43,240 --> 00:04:45,360 Speaker 1: that companies are gonna have to deal with. If you're 81 00:04:45,440 --> 00:04:47,800 Speaker 1: new to a company, new to an enterprise. I mean, 82 00:04:47,920 --> 00:04:51,599 Speaker 1: you have to be out there and you can't responsibly 83 00:04:51,720 --> 00:04:55,880 Speaker 1: resume travel without this vaccination. But we're optimistic about the 84 00:04:55,960 --> 00:04:58,560 Speaker 1: vaccinations that will start our search in the spring and 85 00:04:58,600 --> 00:05:01,000 Speaker 1: we'll find a terrific new see. You know, I'm I'm 86 00:05:01,120 --> 00:05:03,560 Speaker 1: very optimistic. Hey, Mike. You know, just as recently as 87 00:05:03,560 --> 00:05:05,240 Speaker 1: a couple of years ago, with the rise of uber 88 00:05:05,279 --> 00:05:07,000 Speaker 1: and lift, there was a concern that we might have 89 00:05:07,040 --> 00:05:11,360 Speaker 1: reached peak auto pandemics kind of changed that narrative. How 90 00:05:11,360 --> 00:05:15,919 Speaker 1: do you view kind of demand for auto ownership going forward? Yeah, 91 00:05:15,960 --> 00:05:18,359 Speaker 1: here's the key key word. If I look at the again, 92 00:05:18,400 --> 00:05:21,960 Speaker 1: you're talking. If you talk a new vehicle market, you 93 00:05:22,080 --> 00:05:26,440 Speaker 1: have a fleet or shared business, and you have personal 94 00:05:26,560 --> 00:05:32,400 Speaker 1: use retail. I am extremely bullish on retail and personal use. 95 00:05:32,839 --> 00:05:35,760 Speaker 1: I think it's a fundamental shift in thinking of America. 96 00:05:35,920 --> 00:05:39,440 Speaker 1: I think this pandemic has been a scarring event. I 97 00:05:39,440 --> 00:05:43,120 Speaker 1: can remember growing up as a kid meeting people who 98 00:05:43,160 --> 00:05:45,840 Speaker 1: lived through the Great Depression and were frugal for the 99 00:05:45,920 --> 00:05:47,840 Speaker 1: rest of their lives. And when I would say, how 100 00:05:47,839 --> 00:05:49,840 Speaker 1: come we can't spend any money, they would say, well, 101 00:05:49,880 --> 00:05:52,120 Speaker 1: if you've been through what I've been through, you you 102 00:05:52,120 --> 00:05:54,599 Speaker 1: would be this way. I think I think this pandemic 103 00:05:54,640 --> 00:05:58,159 Speaker 1: will ultimately be a scarring event with some permanent changes, 104 00:05:58,520 --> 00:06:01,719 Speaker 1: and one of those will be around UM their home. 105 00:06:02,080 --> 00:06:04,880 Speaker 1: They want more space, Uh, they wanted to be nicer, 106 00:06:04,920 --> 00:06:08,919 Speaker 1: and they want personal transportation. So I think UM rates 107 00:06:08,920 --> 00:06:10,599 Speaker 1: are going to be low for a long time. Guests 108 00:06:10,600 --> 00:06:14,840 Speaker 1: is available for a long time, and and demand for 109 00:06:15,000 --> 00:06:19,240 Speaker 1: personal transportation is strong. That sets up pretty well for 110 00:06:19,320 --> 00:06:21,920 Speaker 1: auto ownership. Mike Jackson, thank you so much for joining us. 111 00:06:21,920 --> 00:06:26,120 Speaker 1: Mike Jackson, CEO of Auto Nation. On earnings, Uh for 112 00:06:26,160 --> 00:06:28,720 Speaker 1: the company, which we're very very strong, sock up sevent 113 00:06:28,760 --> 00:06:31,360 Speaker 1: trailing twelve months. Uh, Matt, what do you what's your 114 00:06:31,480 --> 00:06:33,840 Speaker 1: ride in Berlin? How do you get around? Well? I 115 00:06:33,880 --> 00:06:37,120 Speaker 1: had the nine eleven here, uh, which which which I like, 116 00:06:37,320 --> 00:06:40,039 Speaker 1: but it's a little bit too fast for um the 117 00:06:40,080 --> 00:06:42,000 Speaker 1: mean streets of Berlin. So I got a little family 118 00:06:42,040 --> 00:06:44,720 Speaker 1: truckster to haul around the wife and kids. All right, 119 00:06:44,800 --> 00:06:47,920 Speaker 1: good for you to hear motorcycle in there. We have 120 00:06:47,960 --> 00:06:49,400 Speaker 1: to talk about that. I've got it. I've got a 121 00:06:49,440 --> 00:06:51,400 Speaker 1: few motorcycles as well. I've got a fleet that my 122 00:06:51,440 --> 00:06:54,240 Speaker 1: wife is very unhappy about. I'm sure she is. All right, 123 00:06:54,240 --> 00:06:58,640 Speaker 1: we're gonna have more coming up on Bloomberg Markets. Boy, 124 00:06:58,720 --> 00:07:02,200 Speaker 1: one of those industries that has been hit the hardest 125 00:07:02,520 --> 00:07:06,320 Speaker 1: by this pandemic has been the hotel industry. I mean 126 00:07:06,320 --> 00:07:09,240 Speaker 1: that was day one that the hotels saw their business 127 00:07:09,279 --> 00:07:11,520 Speaker 1: dry up, and it's been a tough road since. Now 128 00:07:11,520 --> 00:07:14,840 Speaker 1: we're uh waiting for the reopening phase of the economy. 129 00:07:15,120 --> 00:07:17,640 Speaker 1: Questions what does it mean for the hotel business? The 130 00:07:17,760 --> 00:07:22,640 Speaker 1: value of Hotels GUILDA Perez Alvarado. She's the global CEO 131 00:07:22,840 --> 00:07:26,240 Speaker 1: for j l L that's the Jones Lang LaSalle Group. 132 00:07:26,640 --> 00:07:31,200 Speaker 1: She joins us and they have a investment outlook for 133 00:07:31,240 --> 00:07:32,840 Speaker 1: the Hotel Business Guild. But what are some of the 134 00:07:32,920 --> 00:07:36,320 Speaker 1: key takeaways here? Because, boy, the hotel industry was hit 135 00:07:36,480 --> 00:07:41,000 Speaker 1: hard and it hasn't really gotten that much better. That's 136 00:07:41,040 --> 00:07:44,000 Speaker 1: exactly right. We were, I would say, one of the 137 00:07:44,080 --> 00:07:48,240 Speaker 1: hardest kid commercial wooded asset classes in the pandemic. Having 138 00:07:48,280 --> 00:07:50,880 Speaker 1: said that, we're right now tracking the most amount of 139 00:07:50,960 --> 00:07:55,920 Speaker 1: capital ever multency invest in the sector with the anticipation 140 00:07:56,080 --> 00:07:59,600 Speaker 1: that Madgin was going to be the fastest asset class 141 00:07:59,600 --> 00:08:03,360 Speaker 1: to with ever once the vaccine is made widely available 142 00:08:03,400 --> 00:08:06,240 Speaker 1: and once traveled with Do you know, I don't think 143 00:08:06,320 --> 00:08:09,400 Speaker 1: people I don't think the average person on street realizes 144 00:08:09,520 --> 00:08:14,760 Speaker 1: how gigantic Jones Lang LaSalle is. I mean it's either 145 00:08:14,840 --> 00:08:18,000 Speaker 1: the biggest, I think, or or the second biggest public 146 00:08:18,040 --> 00:08:19,960 Speaker 1: brokerage firm in the world. This is a company that 147 00:08:19,960 --> 00:08:24,320 Speaker 1: has its roots back in uh the seventeen hundreds in 148 00:08:24,440 --> 00:08:28,040 Speaker 1: London and then has really spread around the world. How 149 00:08:28,040 --> 00:08:30,240 Speaker 1: big is the business? You run? The J L L 150 00:08:30,560 --> 00:08:35,560 Speaker 1: Hotels and hospitality business lets the we're about three hundred 151 00:08:35,600 --> 00:08:39,600 Speaker 1: plus professionals around the world, and um, yes you're the 152 00:08:39,679 --> 00:08:42,600 Speaker 1: number one broker, but we probably yourselves from just being 153 00:08:42,640 --> 00:08:47,400 Speaker 1: overall advisers. So we do everything from investment sales, financings, 154 00:08:47,440 --> 00:08:51,839 Speaker 1: and strategic advisory and acid management. So the way that 155 00:08:51,880 --> 00:08:54,760 Speaker 1: we're position has actually given us very good insights with 156 00:08:55,000 --> 00:08:57,920 Speaker 1: what is happening from an operating not just from an 157 00:08:57,960 --> 00:09:02,599 Speaker 1: operating fundamentals, but also from a wider capital markets perspects. 158 00:09:02,720 --> 00:09:06,559 Speaker 1: So it's it's very interesting to see U whid a 159 00:09:06,640 --> 00:09:10,000 Speaker 1: happening this time around, just because this crisis just unlike 160 00:09:10,040 --> 00:09:14,160 Speaker 1: any others soil they give us a sense of you know, 161 00:09:14,240 --> 00:09:17,080 Speaker 1: what types of hotels were hit the worst, what types 162 00:09:17,160 --> 00:09:21,000 Speaker 1: maybe a fair better during this pandemic and kind of 163 00:09:21,440 --> 00:09:26,520 Speaker 1: have have we seen that reflected evaluations? Absolutely, So evaluation 164 00:09:26,600 --> 00:09:28,160 Speaker 1: is just a bit tricky at the moment, and I'm 165 00:09:28,160 --> 00:09:30,959 Speaker 1: going to address that second. But in terms of of 166 00:09:31,800 --> 00:09:34,080 Speaker 1: which assets have been hit the hardest, I would say, 167 00:09:34,120 --> 00:09:36,120 Speaker 1: as if you said at the onset of the conversation 168 00:09:36,280 --> 00:09:41,400 Speaker 1: that the entire lodging industry has face unprecedented headwinds, I 169 00:09:41,400 --> 00:09:43,840 Speaker 1: don't think any of us ever imagined a scenario where 170 00:09:43,880 --> 00:09:47,440 Speaker 1: literally their life are going to be shut shut down. UM. 171 00:09:47,600 --> 00:09:50,720 Speaker 1: In terms of though, which markets or which asset classes 172 00:09:50,760 --> 00:09:54,280 Speaker 1: have fair better, I would say anything that has to 173 00:09:54,320 --> 00:09:58,400 Speaker 1: do with drive to lesser demand, those facets are doing 174 00:09:58,840 --> 00:10:02,160 Speaker 1: fairly well, and they are the ones that are expected 175 00:10:02,200 --> 00:10:05,280 Speaker 1: to recover the quickest. We're also paying a lot of 176 00:10:05,320 --> 00:10:08,480 Speaker 1: attention on some of these geographies that are doing well, 177 00:10:08,960 --> 00:10:12,640 Speaker 1: especially those that have a net positive migration patterns. You know, 178 00:10:12,679 --> 00:10:16,439 Speaker 1: markets in Florida and Texas and the Carolina. Assets in 179 00:10:16,559 --> 00:10:19,840 Speaker 1: those markets are doing relatively well. The assets that have 180 00:10:19,960 --> 00:10:23,720 Speaker 1: been hit the hardest UM are those located in markets 181 00:10:23,720 --> 00:10:27,680 Speaker 1: like in New York City, of Chicago, Boston, San Francisco. UM. 182 00:10:27,760 --> 00:10:32,079 Speaker 1: And from a segmentation perspective, definitely those hotels that are 183 00:10:32,120 --> 00:10:36,600 Speaker 1: catering more towards with demand and corporate travel. But it's 184 00:10:36,600 --> 00:10:40,360 Speaker 1: not to say that we're not expecting a recovery across 185 00:10:40,400 --> 00:10:43,960 Speaker 1: all after classes. I think we do expect that everything's 186 00:10:43,960 --> 00:10:45,840 Speaker 1: going to come back. It's just a matter of when 187 00:10:46,960 --> 00:10:49,679 Speaker 1: you know what I think about corporate travel, I can 188 00:10:49,679 --> 00:10:52,240 Speaker 1: only think about the Weston because it's like the only 189 00:10:52,280 --> 00:10:56,040 Speaker 1: hotel I stayed and for years and years. And of course, um, 190 00:10:56,200 --> 00:10:58,120 Speaker 1: in terms of M and A, one of the biggest 191 00:10:58,120 --> 00:11:03,320 Speaker 1: deals in hotels was Arnie Sorenson at Marriott buying the 192 00:11:03,480 --> 00:11:07,839 Speaker 1: SPG group and what an incredible customer loyalty program they 193 00:11:07,920 --> 00:11:10,600 Speaker 1: had Slash have. I don't I don't know how well 194 00:11:10,640 --> 00:11:13,280 Speaker 1: they've done bringing it forward, but um, we had the 195 00:11:13,360 --> 00:11:16,640 Speaker 1: sad news that Sorenson passed away at the I think 196 00:11:16,880 --> 00:11:20,720 Speaker 1: very young age of sixty two. Really tragic, and he 197 00:11:20,800 --> 00:11:23,360 Speaker 1: was such a huge figure in in the hotel industry, 198 00:11:23,400 --> 00:11:26,680 Speaker 1: worked for Bill Marriott. Since what do you think about 199 00:11:26,800 --> 00:11:30,280 Speaker 1: what does this mean to the industry? Oh, listen, we're 200 00:11:30,400 --> 00:11:34,520 Speaker 1: we're heartbroken. UM, this is it's it's devastating you. She 201 00:11:34,640 --> 00:11:37,600 Speaker 1: was such an icon, you know, a leader at all 202 00:11:37,640 --> 00:11:40,599 Speaker 1: of us. Have you know a bracing I guess what 203 00:11:40,880 --> 00:11:43,760 Speaker 1: has been one of the most challenging moments in in 204 00:11:43,840 --> 00:11:47,720 Speaker 1: our industry's history. And and he was there at the forefront. 205 00:11:47,840 --> 00:11:50,480 Speaker 1: So you know, our thoughts are within his family and 206 00:11:50,760 --> 00:11:54,160 Speaker 1: the Marriott family, but oh my gosh, he was definitely 207 00:11:54,360 --> 00:11:59,280 Speaker 1: a pioneer and an inspiration to all of us. Gilda, 208 00:11:59,360 --> 00:12:04,040 Speaker 1: given the real you know, disruption to this market, do 209 00:12:04,080 --> 00:12:08,120 Speaker 1: you exct mean, who's investing in hotel assets right now 210 00:12:08,120 --> 00:12:11,520 Speaker 1: that have to be a real risk taker. Yeah, that's 211 00:12:11,520 --> 00:12:14,520 Speaker 1: an it's a great question. We have all of the 212 00:12:14,559 --> 00:12:18,559 Speaker 1: market participants that we have pre COVID are are very active, 213 00:12:18,640 --> 00:12:22,040 Speaker 1: so you know, mostly private equity institutions, the publicly traded 214 00:12:22,120 --> 00:12:26,280 Speaker 1: rates um. They are still bullish on the sector. And 215 00:12:26,360 --> 00:12:29,480 Speaker 1: what's really interesting is that right now we have newcomers 216 00:12:29,480 --> 00:12:33,559 Speaker 1: into this space, so we're seeing more and more private investors, 217 00:12:33,600 --> 00:12:37,000 Speaker 1: family offices, and even hedge funds that are are looking 218 00:12:37,040 --> 00:12:41,120 Speaker 1: at the sector through an opportunistic lens. Um. Now, going 219 00:12:41,160 --> 00:12:43,479 Speaker 1: back to the question that you have earlier in valuations, 220 00:12:43,559 --> 00:12:45,840 Speaker 1: this is where it's gotten really tricky. So while if 221 00:12:45,880 --> 00:12:48,480 Speaker 1: there's a lot of capital out of the sidelines, there 222 00:12:48,520 --> 00:12:51,120 Speaker 1: haven't been a lot of transactions. So if you look 223 00:12:51,160 --> 00:12:54,480 Speaker 1: at what happened in transaction volume across the world was 224 00:12:54,520 --> 00:12:58,560 Speaker 1: found sixty percent it was DOUN in the US. And 225 00:12:58,640 --> 00:13:01,960 Speaker 1: so this wave of the stretch we had to materialize. 226 00:13:02,040 --> 00:13:05,680 Speaker 1: And so I wonder what happens to some of the newcomers, 227 00:13:05,720 --> 00:13:09,080 Speaker 1: you know, to have songs and more opportunistic investors there 228 00:13:09,120 --> 00:13:11,599 Speaker 1: may not be traded them. We're gonna We're gonna have 229 00:13:11,600 --> 00:13:13,560 Speaker 1: to leave it there just because of time. But we 230 00:13:13,600 --> 00:13:16,520 Speaker 1: really appreciate your time. Gilda Prez Alvarado, Global CEO of 231 00:13:16,640 --> 00:13:22,640 Speaker 1: J L L Hotels and Hospitality. What really is becoming 232 00:13:22,679 --> 00:13:24,719 Speaker 1: clear that the metrics that we all follow as a 233 00:13:24,720 --> 00:13:27,240 Speaker 1: religious to the pandemic in terms of hospitalization and other 234 00:13:27,240 --> 00:13:31,079 Speaker 1: metrics are really trending and trending aggressively in the right direction. 235 00:13:31,120 --> 00:13:33,680 Speaker 1: As the virus. Uh. You know, as we start to 236 00:13:33,679 --> 00:13:36,080 Speaker 1: have more and more vaccines into the marketplace, and is 237 00:13:36,080 --> 00:13:38,760 Speaker 1: perhaps the surge from the holidays fades a little bit, 238 00:13:38,800 --> 00:13:41,000 Speaker 1: the questions what's gonna be the intermediate and longer term 239 00:13:41,040 --> 00:13:44,959 Speaker 1: effects of this pandemic as the economy begins to reopen. 240 00:13:45,000 --> 00:13:47,520 Speaker 1: Let's welcome Cliff cup Chain. He's a chairman of your 241 00:13:47,559 --> 00:13:50,280 Speaker 1: raise your group. Uh, Cliff thanks so much for joining 242 00:13:50,320 --> 00:13:52,480 Speaker 1: us here. Again, the numbers seem to be trending in 243 00:13:52,520 --> 00:13:56,240 Speaker 1: the right direction for now, giving people some more I 244 00:13:56,280 --> 00:14:01,080 Speaker 1: guess hope for a reopening of this economy maybe mid year. 245 00:14:01,240 --> 00:14:03,360 Speaker 1: How are you guys thinking about it at your as 246 00:14:03,480 --> 00:14:07,840 Speaker 1: group as you look at it holistically, I think the 247 00:14:07,880 --> 00:14:12,480 Speaker 1: main takeaway we have it is not so fast. Even 248 00:14:12,520 --> 00:14:15,560 Speaker 1: just in the clip you just play optimism sweeps across 249 00:14:15,679 --> 00:14:19,200 Speaker 1: markets that has wrote it down well, we think that 250 00:14:19,240 --> 00:14:23,160 Speaker 1: the theme of easing restrictions is going to be slower 251 00:14:23,160 --> 00:14:25,560 Speaker 1: than consensus predicts that the politics of the virus, and 252 00:14:25,600 --> 00:14:27,640 Speaker 1: what we do here is the politics markets, the politics 253 00:14:27,640 --> 00:14:31,560 Speaker 1: of ideology, the new variance, the new variances, the mutations 254 00:14:31,600 --> 00:14:34,360 Speaker 1: are going to scare governments in publics and officials are 255 00:14:34,400 --> 00:14:36,000 Speaker 1: going to be a lot more reluctant than I think 256 00:14:36,040 --> 00:14:40,800 Speaker 1: consensus observes. Thanks believes these restrictions anning the variants, the 257 00:14:40,880 --> 00:14:43,520 Speaker 1: variants of becoming dominance. And yeah, a lot of this 258 00:14:43,720 --> 00:14:47,080 Speaker 1: public behavior to ease restrictions, and people are so scared 259 00:14:47,120 --> 00:14:50,280 Speaker 1: they's not going to go back to work. So our 260 00:14:50,360 --> 00:14:52,680 Speaker 1: fear is at the all clear sign. My fear is 261 00:14:52,720 --> 00:14:56,160 Speaker 1: being blown too soon. We're gonna have a rough, rough 262 00:14:56,280 --> 00:15:00,760 Speaker 1: still spring the rest of the winter, and and yes, 263 00:15:01,000 --> 00:15:03,760 Speaker 1: well we get to the early summer August or so, 264 00:15:04,240 --> 00:15:05,920 Speaker 1: things will be better. But until man, it's going to 265 00:15:05,960 --> 00:15:08,600 Speaker 1: be pretty tough. Cliff, let me ask you about the 266 00:15:09,080 --> 00:15:14,600 Speaker 1: new variants, because this seems to be, um, the most important, 267 00:15:14,600 --> 00:15:18,920 Speaker 1: scariest variable and also kind of the weirdest because during 268 00:15:18,960 --> 00:15:24,520 Speaker 1: the Spanish flu pandemic, the variants that came after a 269 00:15:24,560 --> 00:15:28,720 Speaker 1: couple of years were less deadly, and I'm not sure 270 00:15:28,760 --> 00:15:32,320 Speaker 1: about the fatality of these new variants, but they certainly 271 00:15:32,400 --> 00:15:37,000 Speaker 1: spread more quickly. Um, do you not expect the virus 272 00:15:37,040 --> 00:15:39,320 Speaker 1: to get easier to live with over time? Is it 273 00:15:39,320 --> 00:15:41,120 Speaker 1: going to be harder to live with like we've seen 274 00:15:41,160 --> 00:15:45,040 Speaker 1: with the British and South African variants. Well, there's no 275 00:15:45,080 --> 00:15:51,160 Speaker 1: way of knowing. The best probability is that they will 276 00:15:51,200 --> 00:15:53,680 Speaker 1: be easier to live with it. They won't mutate in 277 00:15:53,720 --> 00:15:57,440 Speaker 1: a very worrisome direction, but that's a guess. What's really 278 00:15:57,440 --> 00:16:03,600 Speaker 1: scary about these new mutants is that transmissibility goes up. 279 00:16:03,640 --> 00:16:08,040 Speaker 1: As trus transmissibility goes up, the chance of inmutation goes up. 280 00:16:08,440 --> 00:16:12,640 Speaker 1: Now it could be less less lethful, but it could 281 00:16:12,640 --> 00:16:15,200 Speaker 1: also be much more lethal, and that's that's going to 282 00:16:15,280 --> 00:16:17,280 Speaker 1: scare people, and there's reason for you for concern. They're 283 00:16:17,360 --> 00:16:21,520 Speaker 1: just nobody knows. So Cliff, you know, this is obviously 284 00:16:21,600 --> 00:16:26,760 Speaker 1: a global pandemic. There are different capabilities or there's different policies, 285 00:16:26,800 --> 00:16:28,960 Speaker 1: I guess in different parts of the world, different different countries, 286 00:16:29,000 --> 00:16:32,960 Speaker 1: different capabilities to fight this pandemic. How concerned are you 287 00:16:33,120 --> 00:16:36,200 Speaker 1: about There will be some has and have nots here 288 00:16:36,240 --> 00:16:38,320 Speaker 1: as we I guess come out on the other side 289 00:16:38,320 --> 00:16:42,600 Speaker 1: of this, Well, there's a lot of reasons for concern. 290 00:16:42,720 --> 00:16:47,160 Speaker 1: In the US and the industrialized democracy is the ability 291 00:16:47,160 --> 00:16:51,320 Speaker 1: to get vaccines and rule them out is much much 292 00:16:51,520 --> 00:16:53,960 Speaker 1: greater than it is in the emerging markets, where you 293 00:16:54,000 --> 00:16:58,800 Speaker 1: both have less infrastructure, less ability to get vaccines in 294 00:16:59,120 --> 00:17:01,360 Speaker 1: any kind, and certain of the best vaccines, which right 295 00:17:01,360 --> 00:17:04,840 Speaker 1: now are the Madarian and Advisor vaccine, So that there's 296 00:17:04,880 --> 00:17:07,080 Speaker 1: a real half and half not there's a real discrepancy 297 00:17:07,119 --> 00:17:11,240 Speaker 1: between north itself, and that is going to hit sentiment 298 00:17:11,840 --> 00:17:14,639 Speaker 1: towards global inequity as as we move forward. So it's 299 00:17:14,640 --> 00:17:19,040 Speaker 1: a concern. One of the other um interesting differences that 300 00:17:19,080 --> 00:17:22,520 Speaker 1: we see between the coronavirus and Spanish flu is older 301 00:17:22,560 --> 00:17:27,879 Speaker 1: people are affected much more seriously and in health terms 302 00:17:28,280 --> 00:17:30,600 Speaker 1: it was the younger people during the Spanish flu. Is 303 00:17:30,640 --> 00:17:34,440 Speaker 1: this going to change demographics at all? I mean, because 304 00:17:34,440 --> 00:17:37,119 Speaker 1: the numbers appear on the service to be big in 305 00:17:37,240 --> 00:17:41,920 Speaker 1: terms of global deaths. I don't think it will change 306 00:17:41,920 --> 00:17:44,000 Speaker 1: things much more than they have for the simple reasons 307 00:17:44,000 --> 00:17:47,919 Speaker 1: that the vaccines are ruling out right now that it 308 00:17:48,400 --> 00:17:51,600 Speaker 1: provides a durable protection the vaccines among older people from 309 00:17:51,600 --> 00:17:55,320 Speaker 1: everything we know, even against the variants, and what the 310 00:17:55,320 --> 00:17:58,000 Speaker 1: good news so far, The good news is that the 311 00:17:58,119 --> 00:18:01,520 Speaker 1: UK variant, the South Africa variant, and the Brazil variant 312 00:18:02,440 --> 00:18:06,959 Speaker 1: severe cases and fatalities are all controlled very well by 313 00:18:07,000 --> 00:18:09,680 Speaker 1: existing vaccines. It's among the younger populations where which is 314 00:18:09,720 --> 00:18:11,960 Speaker 1: some of the trouble now in Israel left the little 315 00:18:12,000 --> 00:18:14,560 Speaker 1: through the United States, the unvaccinated younger people will become 316 00:18:14,560 --> 00:18:18,919 Speaker 1: more at risk so to the extent of death so 317 00:18:19,000 --> 00:18:21,560 Speaker 1: far in United States have been older people. That's certainly 318 00:18:21,560 --> 00:18:23,920 Speaker 1: affected the numbers. But but as far as the tetonic 319 00:18:24,320 --> 00:18:28,000 Speaker 1: lasting change in demographics, I think kind of what you 320 00:18:28,040 --> 00:18:30,280 Speaker 1: see is what you get, and hopefully unless there is 321 00:18:30,320 --> 00:18:31,840 Speaker 1: this new variant which is usually didn't have in the 322 00:18:31,880 --> 00:18:36,680 Speaker 1: Spanish flow this new killer variant out that the develops, 323 00:18:36,960 --> 00:18:39,920 Speaker 1: We're not going to see a big change in demographics now, Cliff, 324 00:18:39,960 --> 00:18:42,040 Speaker 1: I know in your Eurasia Group report, yeah, you took 325 00:18:42,040 --> 00:18:45,359 Speaker 1: a look at Israel, and Israel has had probably some 326 00:18:45,400 --> 00:18:48,040 Speaker 1: of the best success in terms of the vaccinations. What 327 00:18:48,080 --> 00:18:51,760 Speaker 1: have they done right? They have a public health system 328 00:18:51,800 --> 00:18:54,840 Speaker 1: which we don't have. They've kept data very very well, 329 00:18:55,040 --> 00:18:58,639 Speaker 1: They've rushed out everything that they have just thrown vaccines. 330 00:18:59,119 --> 00:19:03,000 Speaker 1: That's the problem the Kelly out with Israel, though, it 331 00:19:03,040 --> 00:19:05,480 Speaker 1: really is the canary in the coal mine of a guinea. 332 00:19:05,480 --> 00:19:08,879 Speaker 1: Thing that we're looking at right now is among young people. 333 00:19:08,920 --> 00:19:11,480 Speaker 1: They have until very very recently seen a surge in 334 00:19:11,720 --> 00:19:15,800 Speaker 1: infection among younger people. It seems that the UK stream 335 00:19:15,840 --> 00:19:18,920 Speaker 1: has become dominant there Again, the UK strange is more lethal, 336 00:19:18,960 --> 00:19:22,360 Speaker 1: is much more transmissible. So they've done it right. But 337 00:19:22,359 --> 00:19:24,280 Speaker 1: but they've also shown what we in the United States 338 00:19:24,320 --> 00:19:27,200 Speaker 1: have to be great wary of, which is indeed, if 339 00:19:27,200 --> 00:19:31,320 Speaker 1: that UK stream becomes dominant by March, we're going to 340 00:19:31,400 --> 00:19:34,520 Speaker 1: be facing higher infection right as Israel is right now 341 00:19:34,680 --> 00:19:37,040 Speaker 1: with with younger people. So they've done things right. We 342 00:19:37,040 --> 00:19:38,560 Speaker 1: also have to look at what's not gone so well 343 00:19:38,640 --> 00:19:44,480 Speaker 1: right there. From from from my seat here in Berlin, Um, 344 00:19:44,600 --> 00:19:48,400 Speaker 1: the US actually looks like they've they've got it right 345 00:19:48,440 --> 00:19:51,320 Speaker 1: as well. I mean, I know Americans, all my family 346 00:19:51,359 --> 00:19:54,040 Speaker 1: and friends in the States complain about how slow the 347 00:19:54,119 --> 00:19:56,960 Speaker 1: rollout is, but it looks so great compared to you know, 348 00:19:57,000 --> 00:20:01,119 Speaker 1: the snail's pace that we've got here. What has Europe 349 00:20:01,200 --> 00:20:05,000 Speaker 1: done wrong? And um, will they ramp it up quickly? 350 00:20:07,320 --> 00:20:10,240 Speaker 1: Europe has just not been nimble and setting up the 351 00:20:10,440 --> 00:20:13,359 Speaker 1: kind of infrastructure, has not had the vaccine supplied, not 352 00:20:13,480 --> 00:20:17,960 Speaker 1: had the sort of nimble infrastructure which is ah gosh, 353 00:20:18,080 --> 00:20:20,480 Speaker 1: beauties and the eye to beholder. The United States under 354 00:20:20,480 --> 00:20:23,320 Speaker 1: Biden certainly has even the short time he's been president, 355 00:20:23,800 --> 00:20:29,560 Speaker 1: wrapped up it's distribution efficacy, has better access to vaccine. 356 00:20:29,600 --> 00:20:32,000 Speaker 1: So both on distribution efficacy and on access to excuse, 357 00:20:32,040 --> 00:20:34,840 Speaker 1: the US is ahead of well, not the UK, you guys, 358 00:20:34,840 --> 00:20:37,800 Speaker 1: and quite well, but but the EU condental Europe has 359 00:20:37,840 --> 00:20:41,040 Speaker 1: just been quite slow on both counts. Hey, Cliff, thank 360 00:20:41,080 --> 00:20:43,359 Speaker 1: you so much for joining us. We really appreciated Cliff 361 00:20:43,560 --> 00:20:46,600 Speaker 1: cup Chain, chairman of the Eurasia Group, giving us his 362 00:20:46,680 --> 00:20:49,000 Speaker 1: thoughts on the pandemic longer term. So that you are 363 00:20:49,040 --> 00:20:52,400 Speaker 1: in Berlin and that the filling there is great frustration. 364 00:20:52,440 --> 00:20:55,080 Speaker 1: Is that what you're saying? Yeah, absolute frustration. I mean 365 00:20:55,119 --> 00:21:00,120 Speaker 1: we look at um, this liberal multilateral government in Brussels 366 00:21:00,160 --> 00:21:04,040 Speaker 1: just didn't do nearly as well as America first Donald 367 00:21:04,080 --> 00:21:07,440 Speaker 1: Trump and Brexit's Boris Johnson. They got all the supply. 368 00:21:07,920 --> 00:21:09,639 Speaker 1: Even if you don't like them politically, you've got to 369 00:21:10,080 --> 00:21:13,520 Speaker 1: appreciate what they did for the vaccine rollout. Yeah, and 370 00:21:13,560 --> 00:21:15,480 Speaker 1: it looks like again the numbers in terms of that 371 00:21:15,520 --> 00:21:18,080 Speaker 1: MATT here in the US are really looking positive. And 372 00:21:18,080 --> 00:21:20,720 Speaker 1: now the question is, you know, how quickly can they 373 00:21:20,720 --> 00:21:26,679 Speaker 1: get supply into the marketplace. Well, I'm looking at w 374 00:21:26,840 --> 00:21:30,479 Speaker 1: T I crewed here just under sixty dollars a barrel 375 00:21:30,560 --> 00:21:34,760 Speaker 1: higher again due in large park to supply disruptions, particularly 376 00:21:34,760 --> 00:21:37,520 Speaker 1: out of Texas the Permian basin as the Midwest deals 377 00:21:37,560 --> 00:21:40,960 Speaker 1: with this incredible cold snap weather coming all the way 378 00:21:41,000 --> 00:21:43,919 Speaker 1: down into Texas. Let's get the latest. We can do 379 00:21:43,960 --> 00:21:46,359 Speaker 1: that with Marien Malick. Marina is a natural gas and 380 00:21:46,359 --> 00:21:50,560 Speaker 1: power markets reporter for Bloomberg News. Marien, it is brutal 381 00:21:50,680 --> 00:21:53,199 Speaker 1: in terms of a weather perspective, it's wreaking havoc on 382 00:21:53,240 --> 00:21:57,400 Speaker 1: the US energy infrastructure. What's the latest. Yeah, we still 383 00:21:57,440 --> 00:22:00,719 Speaker 1: have millions of people without power, and it seems like 384 00:22:00,880 --> 00:22:05,000 Speaker 1: that the power crisis is expanding. Like the Texas grid 385 00:22:05,000 --> 00:22:09,040 Speaker 1: has had rolling blackouts since early in the morning on 386 00:22:09,040 --> 00:22:13,600 Speaker 1: on Monday, and we've had rounds of blackouts on the 387 00:22:13,640 --> 00:22:16,239 Speaker 1: Southwest Power Pool Gride, so just to the west of 388 00:22:16,280 --> 00:22:18,879 Speaker 1: Texas the grid there and then to the east of 389 00:22:18,920 --> 00:22:22,760 Speaker 1: Texas UM the grid UM operated by Miso, which UM 390 00:22:23,119 --> 00:22:26,280 Speaker 1: extends from the midwest to UM the Gulf Coast. Their 391 00:22:26,320 --> 00:22:32,040 Speaker 1: southern region is also experiencing forced blackouts. And you know, 392 00:22:32,280 --> 00:22:35,119 Speaker 1: it's unclear when this is going to end. There's people 393 00:22:35,119 --> 00:22:38,959 Speaker 1: that have been out without power for over a day 394 00:22:39,080 --> 00:22:43,199 Speaker 1: in Texas and UM, the Southwest Grid thinks that we 395 00:22:43,240 --> 00:22:48,000 Speaker 1: could they could probably see UM rotating outages UM or 396 00:22:48,119 --> 00:22:50,360 Speaker 1: rounds of them for the next forty eight hours. So 397 00:22:50,560 --> 00:22:53,320 Speaker 1: it's not going away anytime soon. Yeah. I saw that 398 00:22:53,640 --> 00:22:57,280 Speaker 1: actually a lot of power producers, including nuclear plants, had 399 00:22:57,320 --> 00:23:01,760 Speaker 1: gone offline. Do we know why. It's a combination of things. 400 00:23:02,080 --> 00:23:06,080 Speaker 1: One of course, like infrastructure is just freezing, so wind 401 00:23:06,119 --> 00:23:10,720 Speaker 1: turbans are just getting frozen but on Monday or A 402 00:23:10,760 --> 00:23:14,000 Speaker 1: lot of the generation outages are are things like natural 403 00:23:14,000 --> 00:23:16,359 Speaker 1: gas plants, which are such a key plate, such a 404 00:23:16,400 --> 00:23:19,200 Speaker 1: key role in in the grid. There're the main supplier 405 00:23:19,400 --> 00:23:22,680 Speaker 1: of of fuel and power to the Texas grid and 406 00:23:22,960 --> 00:23:25,960 Speaker 1: much of the US. You've also had coal plants that 407 00:23:26,000 --> 00:23:30,280 Speaker 1: are experiencing mechanical issues. Um, You've had a nuclear plants 408 00:23:30,359 --> 00:23:33,639 Speaker 1: that tripped offline on Monday morning. The South Texas Project 409 00:23:33,680 --> 00:23:37,400 Speaker 1: had one of two reactors because of like uh, some 410 00:23:37,440 --> 00:23:40,280 Speaker 1: steam generator issues, a pump field. So there's a lot 411 00:23:40,359 --> 00:23:44,880 Speaker 1: of different issues that are contributing to the outages. UM. 412 00:23:45,040 --> 00:23:49,119 Speaker 1: Fuel prices, like natural gas prices have skyrocketed. They just 413 00:23:49,240 --> 00:23:52,919 Speaker 1: hit a thousand or close to a thousand dollars NS 414 00:23:52,960 --> 00:23:57,639 Speaker 1: in Oklahoma. Production is way down in the Permian, and 415 00:23:57,960 --> 00:24:03,400 Speaker 1: like Oklahoma, which Texas is, are like the largest producer 416 00:24:03,440 --> 00:24:05,239 Speaker 1: of fuel, but we can't get it to the right 417 00:24:05,280 --> 00:24:07,920 Speaker 1: places at the right time. Hey, Marine, you know, a 418 00:24:07,960 --> 00:24:10,359 Speaker 1: couple of years ago, I read a book entitled The 419 00:24:10,400 --> 00:24:12,280 Speaker 1: Grid and it's I know it's a little nerdy, but 420 00:24:12,359 --> 00:24:14,359 Speaker 1: it kind of, you know, kind of walked us through 421 00:24:14,400 --> 00:24:17,119 Speaker 1: the development electricity in the United States. And one of 422 00:24:17,119 --> 00:24:19,760 Speaker 1: the things I learned that is Texas is kind of 423 00:24:19,800 --> 00:24:22,400 Speaker 1: really not on the United States grid. They've got their 424 00:24:22,440 --> 00:24:25,679 Speaker 1: own grid, it's not regulated at the federal level. Is 425 00:24:25,720 --> 00:24:29,919 Speaker 1: that contributing to any of the problems in Texas? So 426 00:24:30,080 --> 00:24:32,639 Speaker 1: you've got exactly right. They are the lone star state 427 00:24:32,840 --> 00:24:37,040 Speaker 1: and they are maintaining that in the electricity market too. 428 00:24:37,560 --> 00:24:41,040 Speaker 1: They are set up as an official grid by UM 429 00:24:41,200 --> 00:24:45,560 Speaker 1: the Federal Energy Regulatory Commission, but they have deliberately limited 430 00:24:45,560 --> 00:24:48,840 Speaker 1: how many inner ties, so how many high voltage lines 431 00:24:48,920 --> 00:24:52,240 Speaker 1: go out and connect to neighboring states. So it does 432 00:24:52,359 --> 00:24:55,800 Speaker 1: isolate them from importing power, and they are right now 433 00:24:55,880 --> 00:24:59,040 Speaker 1: importing as much as they can from neighboring states and 434 00:24:59,119 --> 00:25:03,240 Speaker 1: even from Mexico. So it does, you know, limit their 435 00:25:03,280 --> 00:25:06,879 Speaker 1: ability for alternative supplies and could be a reason why 436 00:25:06,920 --> 00:25:11,919 Speaker 1: they are seeing maybe limited ability to like UM to 437 00:25:12,000 --> 00:25:14,560 Speaker 1: you know, you know, find other supplies. UM. But again, 438 00:25:14,640 --> 00:25:18,280 Speaker 1: you know, California had an issue of like just a 439 00:25:18,320 --> 00:25:22,000 Speaker 1: few months ago with blackouts and they have way more ties, 440 00:25:22,040 --> 00:25:27,280 Speaker 1: but they also ran into issues. Yeah, so it's interesting. 441 00:25:27,320 --> 00:25:30,680 Speaker 1: So any sense of timing here, UM Marine in terms 442 00:25:30,720 --> 00:25:33,800 Speaker 1: of when things might get a little bit back to normal, 443 00:25:33,840 --> 00:25:35,600 Speaker 1: I know, it's dependent upon the weather. But what are 444 00:25:35,640 --> 00:25:38,960 Speaker 1: you hearing? So it depends on the weather, But it 445 00:25:39,119 --> 00:25:42,040 Speaker 1: really the big factor is going to be how fast 446 00:25:42,080 --> 00:25:45,560 Speaker 1: can power plants that tripped offline come back online? And 447 00:25:45,600 --> 00:25:48,920 Speaker 1: we keep seeing updates from the Texas grid operators that 448 00:25:49,680 --> 00:25:53,080 Speaker 1: within hours they'll get more generation and that should alleviate 449 00:25:53,119 --> 00:25:55,800 Speaker 1: the you know, some of the outages like that people 450 00:25:55,800 --> 00:25:58,840 Speaker 1: are experiencing. But you know, the conditions are going to 451 00:25:58,960 --> 00:26:03,000 Speaker 1: last like like into Tuesday. Parts of the South are 452 00:26:03,000 --> 00:26:06,960 Speaker 1: going to see like extreme conditions potentially into Thursday. So 453 00:26:07,680 --> 00:26:09,520 Speaker 1: there are a lot of moving parts and and that's 454 00:26:09,520 --> 00:26:13,680 Speaker 1: why it makes it really difficult to predict. Um. Yeah, yeah, 455 00:26:13,680 --> 00:26:16,679 Speaker 1: it's just been just been you know, when we have 456 00:26:16,720 --> 00:26:19,600 Speaker 1: power issues up here, you know, we see the trucks 457 00:26:19,600 --> 00:26:21,640 Speaker 1: from the rest of the country come here to help 458 00:26:21,680 --> 00:26:23,479 Speaker 1: us out and hopefully the rest of the country can. 459 00:26:23,520 --> 00:26:26,159 Speaker 1: How about Texas and the other areas that are getting 460 00:26:26,240 --> 00:26:28,639 Speaker 1: hit hard? And Marine Malt, natural gas and power markets 461 00:26:28,640 --> 00:26:30,439 Speaker 1: reporter for Bloomberg, Thank you so much for joining us 462 00:26:30,440 --> 00:26:32,840 Speaker 1: in matt This seems like this is a weather driven 463 00:26:32,880 --> 00:26:35,320 Speaker 1: issue when the good folks down in Texas is not 464 00:26:35,440 --> 00:26:37,399 Speaker 1: the bat batting down the hatches for a few guys. 465 00:26:37,440 --> 00:26:40,800 Speaker 1: I'd say coincidentally, I just watched last night the Day 466 00:26:40,840 --> 00:26:44,000 Speaker 1: after Tomorrow. Have you seen that with um Dennis? Yeah, 467 00:26:44,040 --> 00:26:47,000 Speaker 1: you're reading the grid right, you're doing the highbrow. You're 468 00:26:47,000 --> 00:26:49,040 Speaker 1: doing the highbrow in the weeds and I'm watching the 469 00:26:49,040 --> 00:26:52,720 Speaker 1: Dennis Quaid movie. But that's about um. Cold weather due 470 00:26:52,760 --> 00:26:55,600 Speaker 1: to climate change just freezing over North America and it's 471 00:26:55,680 --> 00:27:01,359 Speaker 1: just so's they're probably feeling that down in Texas. Thanks 472 00:27:01,359 --> 00:27:04,840 Speaker 1: for listening to the Bloomberg Markets podcast. You can subscribe 473 00:27:04,880 --> 00:27:08,600 Speaker 1: and listen to interviews of Apple Podcasts or whatever podcast 474 00:27:08,640 --> 00:27:12,160 Speaker 1: platform you prefer. I'm Matt Miller. I'm on Twitter at 475 00:27:12,200 --> 00:27:16,000 Speaker 1: Matt Miller three. On Fall Sweeney, I'm on Twitter at 476 00:27:16,040 --> 00:27:18,879 Speaker 1: pt Sweeney. Before the podcast. You can always catch us 477 00:27:18,920 --> 00:27:20,359 Speaker 1: worldwide at Bloomberg Radio.