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Speaker 2: Well before the Thanksgiving festivities, we got an economic feast
Speaker 2: of data earlier this morning, ahead of the holiday, the
Speaker 2: government data showing the US economy expanded at a solid
Speaker 2: pace in the third quarter, largely powered by a broad
Speaker 2: based advance and consumer spending and steady business investment GDP
Speaker 2: increasing at a two point eight percent annualized pace in
Speaker 2: the third quarter. That's the second estimate, so second read
Speaker 2: of the figures from the Bureau of Economic Analysis. The
Speaker 2: economy's primary growth engine consumer spending. You me everybody, we
Speaker 2: are spending invetsing three and a half percent tim that
Speaker 2: was the most this year.
Speaker 3: And then the Fed's preferred measure of underlying and flight
Speaker 3: accelerated in October from a year ago. It kind of
Speaker 3: helps explain policymakers more cautious approach to lowering interest rates.
Speaker 3: With our roundup on everything when it comes to the
Speaker 3: US economy with us as Bloomberg News International Economics and
Speaker 3: Policy correspondent Michael McKee here in the Bloomberg Business Week studio.
Speaker 4: Mike, it's a lot you're pointing at me, Carolyn.
Speaker 2: Think it when you go for Thanksgiving dinner, do you
Speaker 2: like sit down and you walk in and you're like,
Speaker 2: you're surrounded by family? Like, all right, Mike, So what's
Speaker 2: going on with the economy? Do they is like that?
Speaker 2: The question?
Speaker 5: Sometimes sometimes you get that, and you know, like on
Speaker 5: a plane last night, somebody recognized me and said, what's.
Speaker 2: Going on with it?
Speaker 5: Was it?
Speaker 4: Are they asking about tariffs now too?
Speaker 5: I think it's a little too early for that. I mean,
Speaker 5: obviously other reporters and political types do, but the average person,
Speaker 5: they haven't focused on that yet.
Speaker 4: They will.
Speaker 3: So is it okay for somebody on an airplane or
Speaker 3: in an airport to come up to Michael McKee and
Speaker 3: ask them what's going on in the economy?
Speaker 4: Do you welcome that kind of attimp.
Speaker 5: Wear? Let me put it this way, It is so seldom.
Speaker 2: I don't believe.
Speaker 5: I am flattered. I'm happy that people are watching and
Speaker 5: listening to Bloomberg.
Speaker 2: They all listen and watch you in a big way.
Speaker 2: All right, big data dump, tell us about what we
Speaker 2: need to know about the numbers we got today.
Speaker 5: They were sort of status quoish in the sense that
Speaker 5: we are still spending. As you mentioned, three and a
Speaker 5: half percent is the revised figure for personal consumption in
Speaker 5: third quarter GDP was three point seven. But you took
Speaker 5: that pair of shoes back, I think, and that you
Speaker 5: got the refund that brought it down a little. But
Speaker 5: then the personal spending numbers came in at a reasonable level,
Speaker 5: up four tenths of eight percent. It was six tenths
Speaker 5: in the month of September. But you have to realize
Speaker 5: too that September is back to school, so maybe there
Speaker 5: was a little bit of extra spending. Then it's going
Speaker 5: to be interesting to see, but we should be set
Speaker 5: up okay for the holiday spending time. In the report,
Speaker 5: we saw a little bit of an increase in the
Speaker 5: personal savings rate, which suggests people still have some money.
Speaker 5: And the best news of all, well, it's mixed news
Speaker 5: because I have to set up the predicate that PCE
Speaker 5: price indexes, the FEDS measure went up a little bit
Speaker 5: two point three percent on a year over year basis
Speaker 5: for the headline two point eight. For the core, it
Speaker 5: gets as farther away from their two percent, But wages
Speaker 5: and salaries went up half a percent and that pushed
Speaker 5: them up above the rise in inflation.
Speaker 2: So so that's the reason for the rise.
Speaker 5: No, that's the reason why people can keep spending even
Speaker 5: though inflation may bother them. They're still making more money.
Speaker 5: They don't. We had his argument with Matt Miller on
Speaker 5: on his show this morning. You know, he, like everybody else, says, yeah,
Speaker 5: but inflation is something that people do to me. They
Speaker 5: raised prices on me, whereas if I get a raise,
Speaker 5: it's all because of me because I'm great.
Speaker 4: Well, that is great. I understand why where he's coming out.
Speaker 5: That it is funny about that, but it is true
Speaker 5: of everybody. That's a thing that psychologists have found to
Speaker 5: be true, and it's one reason why even though inflation
Speaker 5: has come down, people are still upset.
Speaker 3: So explain that a little bit more, because I think
Speaker 3: that's a really important point, especially post election, is understanding
Speaker 3: the relationship between wages and inflation.
Speaker 5: Well, wages don't cause us inflation. Inflation causes wages because
Speaker 5: the causality is that prices go up, and then people say,
Speaker 5: I got to get even, so I go to my
Speaker 5: boss and I ask for more money. And that's certainly
Speaker 5: what you see when when you see the pattern bargaining
Speaker 5: and union negotiations, and I guess the rest of us
Speaker 5: are all getting wages increases this year.
Speaker 2: We hope not some of those Starbucks folks. But remember
Speaker 2: we did that story.
Speaker 5: But people do think that they get pay increases because
Speaker 5: they deserve them. And I wouldn't argue, but it does.
Speaker 5: You know, you have to keep in mind that the
Speaker 5: relationship between inflation and your wages increases what matters. And if,
Speaker 5: as we've seen for the last year and a half,
Speaker 5: wages are rising faster than inflation, then we're better.
Speaker 2: Off, all right, So we can kind of keep on shopping,
Speaker 2: which is a good thing. Hey, listen, is there anything
Speaker 2: though new or slightly altered you know in the data
Speaker 2: said or not really? You said status quota to begin with,
Speaker 2: So there's nothing of that we should be like, nothing that's.
Speaker 5: Going to change the course of the Fed's thinking at
Speaker 5: this point, because they knew going in what the PCEE
Speaker 5: prices would be. The economists can figure that out. Jobless
Speaker 5: claims were still basically unchanged from the week before. There's
Speaker 5: no sign that companies are laying people off. The trade
Speaker 5: balance went down in part because it went up in
Speaker 5: the month of September because companies were bringing in products
Speaker 5: because of the possible port strike. But that will be
Speaker 5: technically a contributor to growth in the fourth quarter. So
Speaker 5: there's some good news. And GDP as strong suggests that
Speaker 5: growth will probably still be strong in the fourth quarter,
Speaker 5: and that was not expected at the beginning of the year.
Speaker 3: I'm going to be in here on Friday talking a
Speaker 3: little bit about Black Friday and getting an understanding of
Speaker 3: what people are spending money on. But I'm also going
Speaker 3: to be hounded by PR people throughout the entire day
Speaker 3: trying to give me updates on consumer spending. Can I
Speaker 3: pay attention to any of that or will we not
Speaker 3: know how Black Friday went and what it means for.
Speaker 5: Well, Yeah, it'll be a whole bunch of different few weeks.
Speaker 5: There'll be a whole bunch of different measures of how
Speaker 5: Black Friday went. You'll get store traffic from some people,
Speaker 5: You'll get some spending numbers from credit card companies, You'll
Speaker 5: get other spending numbers from the retailers, and none of
Speaker 5: it really means anything. It's a sort of an artificial construct.
Speaker 5: We know that it's one of the busiest times, not
Speaker 5: the busiest shopping day of the year, but we know
Speaker 5: it's one of the busiest times of the year, and
Speaker 5: that weekend it kicks off, et cetera. But really, what
Speaker 5: you end up doing is sort of looking at the
Speaker 5: spending numbers that we saw today, the numbers for November
Speaker 5: and December, and you average them out. Because one thing
Speaker 5: that's happened is the retailers have all started advertising cheaper
Speaker 5: stuff in October now for the holidays, and they've pulled
Speaker 5: forward a lot of spending. So maybe some of the
Speaker 5: people who would have gone and stood in line outside
Speaker 5: of store. Fortunately a lot of stores don't do that anymore. Thanksgiving,
Speaker 5: those people have already spent some money, so we may
Speaker 5: not see, you know, the kind of big burst you
Speaker 5: see saw in the.
Speaker 2: Past, gener little shopping last Sunday in the city and
Speaker 2: it would you give me tbdk?
Speaker 3: But it surprised hesitate there instead.
Speaker 4: Of saying nothing, would you like some skinny jeans?
Speaker 6: No?
Speaker 4: Actually I do live in Brooklyn.
Speaker 2: I could do that. But what's interesting is it wasn't
Speaker 2: as crowded as I thought, but there were lots of
Speaker 2: sales forty off some significant sales, so I thought it
Speaker 2: was interesting. One quick last question thirty forty seconds. What
Speaker 2: economy does president like Donald Trump is he handed on
Speaker 2: day one in the White House and how much of
Speaker 2: it is the result of the past administration and of
Speaker 2: FED action of the past four years.
Speaker 5: Well, it's probably going to be good, better than we
Speaker 5: thought it would be. The economy has strength going into
Speaker 5: the new year, unless some exogenous event happens that we
Speaker 5: can't predict, or unless he, through some of his tweeting, etc.
Speaker 5: Makes some sort of problem for the economy. But basically
Speaker 5: he will inherit a good economy as he did from
Speaker 5: Barack Obama. So he is lucky in that sense, and
Speaker 5: I'm sure it will be all due to him, But
Speaker 5: he can't take any credit for anything that happens before
Speaker 5: January twentieth.
Speaker 2: I just don't think it's an important narrative because we
Speaker 2: talk about this a lot with past presidents, how they
Speaker 2: are inheriting really the policies that people have been in
Speaker 2: place right the previous administration. Michael McKee, Happy Thanksgiving, You
Speaker 2: can now start your holiday. Thank you, thank you, thank
Speaker 2: you favorite pie.
Speaker 5: I tend to like Apple. I guess I'm relatively traditional.
Speaker 2: I have a piepole going on. What you can, I'm
Speaker 2: going to make it can three? Ah see all right?
Speaker 2: Bloomberg News International Economics and Policy Correspondent Michael McKee.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
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Speaker 2: So bloombergs Christa c put out a story recently reporting
Speaker 2: out in our Bloomberg Deals newsletter, and what she wrote
Speaker 2: is that everywhere, activists are feeling more emboldened to push
Speaker 2: for bigger, more significant asks at larger companies. Elliott leading
Speaker 2: the pack with another megacaf campaign. They called on Honeywell
Speaker 2: to break itself up. There's a lot tim that's going
Speaker 2: on when it comes to activist.
Speaker 3: Investors of activists often mirror market optimism as the market
Speaker 3: trends up with the hope that the new administration will
Speaker 3: relax regulations and bring down interest rates. That activists are
Speaker 3: actually bold and busier, but then there's this other side
Speaker 3: of things where it's like the anti ESG movement, like
Speaker 3: we saw out of that lawsuit earlier today filed by
Speaker 3: Ken Paxton out of Texas and ten other states. Curious
Speaker 3: to see what our next guest has to say. It's
Speaker 3: been a bit since we last spoke with her, so
Speaker 3: great to be checking back in with Jennifer Grancio. She's
Speaker 3: head of ETFs over at TCW. She joins us from
Speaker 3: Los Angeles. Good to have you back with us, Jennifer,
Speaker 3: How are you.
Speaker 7: I'm very well, nice to be here.
Speaker 3: We were kind of reminiscing back to when we last
Speaker 3: talked to you and we were at Milkin back in
Speaker 3: twenty twenty one. It was like that weird October Milkin
Speaker 3: event because things had been put on hold as a
Speaker 3: result of the pandemic. Things were different then. Engine Number
Speaker 3: One was an independent company. Now from about a year
Speaker 3: you've been at TCW. Just give us an update as
Speaker 3: to how the integration is going and sort of where
Speaker 3: you are now.
Speaker 7: Thank you, So Engine number One to TCW.
Speaker 8: So at TCW, you know, we've been an active manager
Speaker 8: for more than fifty years, started as a concentrated active
Speaker 8: manager and have a very large business around the public
Speaker 8: and private fixed income.
Speaker 7: So the engine number one.
Speaker 8: Acquisition about a year ago got TCW into the ETF business.
Speaker 8: And if you look at our ETF franchise today at TCW,
Speaker 8: we've got five terrific equity funds. We could talk more
Speaker 8: about that, and then much recently, more recently we've added
Speaker 8: and converted mutual funds and we now have six fixed
Speaker 8: income funds. So, as a kind of very careful, fundamental,
Speaker 8: active manager, we think the market needs these thematic products
Speaker 8: on the equity side, and then on fixed income, we
Speaker 8: think the market needs better tools to deliver income and portfolios.
Speaker 2: What do you mean in terms of better tools right now?
Speaker 2: I mean the fixed income market has been kind of
Speaker 2: a wild one this year, and I feel like go
Speaker 2: back a year in the narrative around how aggressive the
Speaker 2: FED was going to be that didn't pan out. But
Speaker 2: tell us how you are thinking about that and the
Speaker 2: types of products that are needed in the fixed income
Speaker 2: world today for investors.
Speaker 8: So, if you think about portfolio construction over the very
Speaker 8: long term, you know immediate term to very long term,
Speaker 8: you think about fixing income and a portfolio as providing
Speaker 8: defense and ballast as well as return. And so if
Speaker 8: we look at portfolios today, markets have been very interesting
Speaker 8: for the last however many years, and honestly, you know,
Speaker 8: I think investors still have too much cash, and so
Speaker 8: fixed income is a way both to diversify the portfolio
Speaker 8: and to kind of move out of cash and into
Speaker 8: more income producing assets.
Speaker 7: And so what we've done at TCW is, we know.
Speaker 8: That everybody's got something at the core total return portfolio today,
Speaker 8: and so what we've done is we've launched six products
Speaker 8: that let you, in a very smart and considered way,
Speaker 8: have total return plus income or I'll actually leg into
Speaker 8: additional layers of income in the portfolio.
Speaker 7: And that's what the TCW ets do.
Speaker 2: I am curious too about you know, why now in
Speaker 2: terms of switching the funds, some of the fixed income funds,
Speaker 2: converting them from mutual funds to ETFs, why now is
Speaker 2: the time to do it?
Speaker 8: Yeah, if you look at the market, you know, the
Speaker 8: ETF market has been around for a long time now,
Speaker 8: but the use of active strategies in the ETF wrapper
Speaker 8: is really accelerated in growth. And so this year, at
Speaker 8: this point in the year, we probably have the thirty
Speaker 8: percent growth and flows into active ETFs. It's about eight
Speaker 8: hundred billion in total now. And so as TCW we
Speaker 8: serve institutional investors, we serve wealth and retirement clients, and
Speaker 8: a lot of those clients love the mutual funds, and
Speaker 8: as people are building wealth oriented taxable portfolios, we have
Speaker 8: a lot of investors that really are looking for ways
Speaker 8: to use our products and models, use our products in.
Speaker 7: The simple vehicle and the ETF that we've gotten used to.
Speaker 8: And so our ETF range is coming in alongside our
Speaker 8: great mutual funds.
Speaker 7: Flexer is total return.
Speaker 8: And a yield product. Use is the first of its
Speaker 8: kind way to add yield. Let an active manager select
Speaker 8: and add for you, and we can talk a little
Speaker 8: bit more about that. Other ways to look at income.
Speaker 8: In the case of bank loans are high yield. We
Speaker 8: think the index products actually aren't the rank tools. So
Speaker 8: we've also launched ETFs in that space.
Speaker 2: Remind me again, though, just go back, what kind of
Speaker 2: flows have you been seeing into the fixed income world,
Speaker 2: especially post election. I'm just curious what you've been seeing
Speaker 2: more less, give me some context.
Speaker 7: Yeah, flows into fixed income have picked up, for sure.
Speaker 8: I think listen, we would all love to have a
Speaker 8: crystal ball and know exactly what's going to happen. But
Speaker 8: I think flows into fixed income have picked up, but
Speaker 8: there's still a lot of money in cash, and some
Speaker 8: of that money that's in cash could be coming into
Speaker 8: fixed income products that could be coming into things like
Speaker 8: Triple A clos that's another ETF we just launched right
Speaker 8: where it's not sitting in cash. It's higher return, but
Speaker 8: it's also very safe. So we think that people are
Speaker 8: putting money back to work, they need the right tools
Speaker 8: to do it.
Speaker 2: Hey, listen, one thing we were thinking about prepping for
Speaker 2: this and so great to get an update of kind
Speaker 2: of what you guys are doing at TCW. But I
Speaker 2: have to say, you know, we thought about that conversation
Speaker 2: at milk and I mean when number you know, into
Speaker 2: Number one came on the scene, we were like, who
Speaker 2: are they and they're taking on this massive you know,
Speaker 2: integrated oil company, energy company that was exon the activism
Speaker 2: that Number one did. Little note fund waged a battle
Speaker 2: and one got seats on the board. When you look
Speaker 2: back at that moment, what was so key for it
Speaker 2: about you? For you guys as a firm, as an activist.
Speaker 8: Yeah, I mean I think what Engine number one did
Speaker 8: was really kind of looking at the fundamental changes that
Speaker 8: we see unfolding in the industry in terms of how
Speaker 8: we use power, in terms of how we use energy,
Speaker 8: in terms of restoring and manufacturing, and frankly, energy companies
Speaker 8: had a way to capitalize on that. They were taking advantage.
Speaker 8: Exon needed to do a better job of capital allocation,
Speaker 8: which they've done. And at TCW, you know, we're always
Speaker 8: looking at how things change over time. We're active managers,
Speaker 8: and so what we did at Exon, I think, was
Speaker 8: to make a point that the world is changing around
Speaker 8: energy and power use and these companies can, companies like
Speaker 8: Exon can do a good job of capital allocation and
Speaker 8: take advantage of that.
Speaker 7: And we still do that across our whole business at TCW.
Speaker 8: We always looking at fundamental risks and you know, economically
Speaker 8: material risks.
Speaker 7: And the one of the funds that.
Speaker 8: Came over from ENTIONE number one to TCW, net Z
Speaker 8: is still a great way to kind of invest in
Speaker 8: that energy and power transition. At the same time, at TCW,
Speaker 8: we've created this range of fixed income right ets so
Speaker 8: that you can also I'm that part of the portfolio
Speaker 8: build for income so there's a lot of very exciting
Speaker 8: opportunities to come alongside and investor portfolios. This allocation to
Speaker 8: the index and the weight on big tech names that
Speaker 8: probably is too heavy.
Speaker 7: But Jennifer sitting in cash, can I ask you?
Speaker 2: Can I ask one thing though? You know, when you know,
Speaker 2: I think we all thought fossil fuel growth, that this
Speaker 2: was going to be the end of Exxon being able
Speaker 2: to really kind of really continue to kind of grow
Speaker 2: in that area. All three of the board picks that
Speaker 2: you guys put in voted in favor of the sixty
Speaker 2: billion dollar acquisition of Pioneer Natural Resources per basin Behemoth.
Speaker 2: So like, when you look at that, so obviously not
Speaker 2: an end to Exon's production. I think their oil production
Speaker 2: it's highest and its one hundred and forty year history
Speaker 2: just thirty forty seconds here, So is it still a win?
Speaker 9: Like?
Speaker 2: How do you see that?
Speaker 8: Yeah, our work with Exon was around raising the stop price,
Speaker 8: which ends to number one. You know, changed the stop
Speaker 8: price of Exon seventy percent. It encouraged Exon to add
Speaker 8: other skills to the board and then independently Exon and
Speaker 8: the boarded Exon have found ways to make money in
Speaker 8: kind of new and greater businesses as well as to
Speaker 8: smartly invest to basically meet the demand we have for
Speaker 8: energy and power. It's us as consumers that are using
Speaker 8: AI and data centers and phones, and so they have
Speaker 8: a very different discipline now than they did before that campaign,
Speaker 8: and we think if that's an important investment theme.
Speaker 2: All right, So glad to get some time with you.
Speaker 2: Happy Thanksgiving, Jennifer Grancio over at TC.
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Speaker 2: All right, are we there yet? It's soon to be
Speaker 2: replaced by do we need this? Get to Thanksgiving and
Speaker 2: then you gotta do shopping.
Speaker 3: After I was over at somebody's house over the weekend.
Speaker 3: Their names will go somebody. They were anonymous, And there
Speaker 3: was a peloton. There was a peloton in the basement.
Speaker 3: It was being used as a drying wreck.
Speaker 2: How many pieces of workout equipment have I certainly had
Speaker 2: in my homes and it's like, all of a sudden,
Speaker 2: like the clothes are hanging on it, and it's really sad.
Speaker 4: Just throwing it out there.
Speaker 2: It's really sad, all right. Great story that gets into
Speaker 2: kind of what to expect. I love how the story
Speaker 2: by our team here at Bloomberg. It starts off with
Speaker 2: driving six hours for used rowing machines, slashing Christmas budgets
Speaker 2: by eighty percent, shopping for gifts starting around Easter. Welcome
Speaker 2: everybody to the twenty twenty four holidays, where inflationary shoppers
Speaker 2: are going to extreme lengths to get a deal. Tim,
Speaker 2: I've already bought some things and it's like Cubon's.
Speaker 3: Or discuss I already learned earlier today. Nothing for me,
Speaker 3: but that's fine, there's still time.
Speaker 2: I just said'm a last minute shot.
Speaker 3: Holiday shopping already underway ahead of Black Friday with more
Speaker 3: Why shoppers are asking themselves do we really need this?
Speaker 4: With us here in the.
Speaker 3: Studios Bloomberg News Consumer team leader Emily Cone, So, Emily,
Speaker 3: do consumers really need this stuff? And why is this
Speaker 3: question being asked right now?
Speaker 5: So?
Speaker 9: The big theme of this year on the retail beat
Speaker 9: has been lower discretionary spending. Consumers are largely making the
Speaker 9: same amount that they've been making, but groceries cost more.
Speaker 9: Essential goods cost more, so that leaves less discretionary dollars
Speaker 9: on the table to be spent on things like leggings
Speaker 9: and things that you don't necessarily need a rowing machine TVs.
Speaker 9: So that gives retailers a lot to be anxious about
Speaker 9: this holiday season.
Speaker 2: Are they also anxious because it's a holiday? It's shortened
Speaker 2: shopping season because Thanksgiving is coming so late.
Speaker 9: That's exactly right. Thanksgivings later in the month of November,
Speaker 9: which means the period between Thanksgiving and Christmas is shorter
Speaker 9: than usual. There's a lot to be anxious about.
Speaker 3: It's interesting, though, because we also got some consumer data
Speaker 3: out this morning, or some economic data, I should say,
Speaker 3: that shows that consumers are still at least the economy
Speaker 3: is still in a place.
Speaker 4: We're making a little more money.
Speaker 3: But you know, as we learned with the election, you know,
Speaker 3: and why people voted the way they did. I think
Speaker 3: the post mortem is certainly still being done. You can't
Speaker 3: always necessarily trust that data. Consumers certainly don't feel like
Speaker 3: they have a lot of money and they're in a
Speaker 3: good place right now? How are you guys looking at it?
Speaker 9: So this is where we start to talk about what
Speaker 9: we talk about a lot, the bifurcation of consumers. And
Speaker 9: you see that when you look at stores like Walmart
Speaker 9: and Target. Walmart's doing really well. They're outperforming most retailers
Speaker 9: right now, and I think that speaks to the fact that, yes,
Speaker 9: consumers are ill spending, but they're looking for a deal.
Speaker 9: They're pricing down. So someone who might have been doing
Speaker 9: their grocery shopping at Whole Foods might be going to
Speaker 9: Walmart today. So Walmart is doing well. And then a
Speaker 9: store like Target, which really bets on you walking in
Speaker 9: for one thing and then filling up your your cart
Speaker 9: with a million.
Speaker 2: Other charge you don't need.
Speaker 9: That's that's the kind of thing that we're we're seeing
Speaker 9: a lot of right now. Target. Target has a lot
Speaker 9: at stake this Black Friday. They have what they are
Speaker 9: hoping is going to draw on a lot of people,
Speaker 9: a Taylor Swift book.
Speaker 2: I keep hearing about this. I heard them talk about
Speaker 2: it unlike either surveillance or intelligence this morning.
Speaker 9: So this is a blockbuster book deal that can only
Speaker 9: be bought in stores on Friday. So It'll be available
Speaker 9: online on Saturday, but only in stores on Friday. And
Speaker 9: this is Taylor Swift.
Speaker 2: Is just the official Taylor Swift Eras tour book.
Speaker 1: It is.
Speaker 9: I think that's exactly the title.
Speaker 2: Yes, oh my god, how much does this go for
Speaker 2: thirty nine to ninety nine tim okay book?
Speaker 4: It's a lot for a book, yeah.
Speaker 2: Than a ticket though, or going to the tour. That's
Speaker 2: for sure.
Speaker 4: You were in Toronto over the weekend.
Speaker 2: I was not heard she was weepy. Oh really because
Speaker 2: it was emotional because I think she's, like, you know,
Speaker 2: finishing up these different legs of the tour. Having said that,
Speaker 2: so discounting, I already saw it last week doing some
Speaker 2: shopping on Sunday, some serious like I keep saying this
Speaker 2: forty percent off at Levi's. I'm just telling you we are.
Speaker 2: Are we seeing more discounting than normally.
Speaker 9: Definitely seeing more discounting than normally. A lot of retailers
Speaker 9: are retailers are really desperately in need of a turnaround
Speaker 9: this season. So the stores we're closely watching are Macy's, Nike, Cole's,
Speaker 9: Best Buy. Many of these companies have relatively new CEOs,
Speaker 9: so they're trying different strategies this year, and then a
Speaker 9: lot of stores are also looking to see their see
Speaker 9: their e commerce grow. So a store like Walmart to
Speaker 9: speaking to the online deals, offering twice as many online
Speaker 9: deals as they did last year.
Speaker 4: So let's talk.
Speaker 3: Let's end there, because you're you're in charge of the
Speaker 3: team that sort of fanning out all over the country
Speaker 3: getting an understanding of how consumers are feeling on Black Friday.
Speaker 3: I mentioned this note from Deloitte that was out earlier
Speaker 3: this week. It's a survey that says, for the first time,
Speaker 3: online only retailers beat out all other retail formats is
Speaker 3: the preferred way consumers want to shop. How are retailers,
Speaker 3: brick and mortar retailers getting people into stores apart from
Speaker 3: the Taylor Swift book, getting people into stores if they
Speaker 3: want to be shopping online.
Speaker 9: Yeah, I mean that's what we're that's what we're going
Speaker 9: to watch for on on Friday. I think piece of
Speaker 9: shoppers in stores is expected to slow. The growth is
Speaker 9: expected to be slower than it was last year, and
Speaker 9: we are watching. But best Buy is bringing back doorbusters,
Speaker 9: which is something that brings to mind, like twenty ten,
Speaker 9: early twenty tens when people were like, but stores.
Speaker 2: Are careful opening up Thanksgiving night. Right, We've gotten away
Speaker 2: from that. We're seeing that.
Speaker 9: Over this is an act.
Speaker 4: That's great. That that's all.
Speaker 2: I agree, Yeah, I agree with you.
Speaker 3: It's like imagine being the workers who are like leaving
Speaker 3: Thanksgiving to go do this.
Speaker 2: Stop at people you can shop on Friday morning. Listen,
Speaker 2: We're going to be listening to all of the coverage
Speaker 2: that you and the team are doing. I know Tim's
Speaker 2: going to be talking to a lot of the people.
Speaker 2: So thank you.
Speaker 8: Thank you.
Speaker 2: Emily Cone, consumer team leader at Bloomberg News. Right here
Speaker 2: in our studio.
Speaker 1: You're listening to the Bloomberg Business Week podcast. Catch us
Speaker 1: Live weekday afternoons from two to five pm Eastern. Listen
Speaker 1: on Apple card Play and then brout auto with a
Speaker 1: Bloomberg Business Act or want us Live on YouTube.
Speaker 3: Earlier this month, of Luber News colleague Jennifer Dedlouy reported
Speaker 3: that President Biden's administration is setting out plans for the
Speaker 3: US to triple nuclear power capacity by twenty fifty. Demand
Speaker 3: climbing for the tech as a round the clock source
Speaker 3: of carbon free power. We've talked about we have the
Speaker 3: need for energy generation as a result of what's going
Speaker 3: on with AI servers and the like. Well, under a
Speaker 3: roadmap being unveiled earlier this month, the US would deploy
Speaker 3: an additional two hundred gigawatts of nuclear energy capacity by
Speaker 3: mid century through the construction of new reactors, plant re starts,
Speaker 3: and upgrades to existing facilities. In the short term, the
Speaker 3: White House aims to have about thirty five gigawats of
Speaker 3: new capacity operating in just over a decade. For some context, well,
Speaker 3: nuclear accounted for about one hundred gigawats of installed electricity
Speaker 3: generation capacity in the US and twenty twenty three, So yeah,
Speaker 3: that would be a big jump.
Speaker 2: All right. So let's get to Joe Kletcha because he's
Speaker 2: hoping to help the United States get to that level.
Speaker 2: He is chief nuclear officer of the Nuclear Company, which
Speaker 2: is looking to build a series of nuclear power plants
Speaker 2: across the United States. He joins us on this Wednesday
Speaker 2: from Evans, Georgia. Hey, Jo, nice to have you back
Speaker 2: with us and talking about the work you guys are doing.
Speaker 2: Remind our world exactly what you are setting to do,
Speaker 2: because you haven't built any plants yet.
Speaker 10: Correct, that's correct. Thank you so much for having me.
Speaker 11: I'm excited to be here and sharing some great information
Speaker 11: about the nuclear industry with you and your base. Yeah,
Speaker 11: we aim to really develop and deploy new nuclear at
Speaker 11: large scale. You really kick us off with some exciting
Speaker 11: statistics and also some monumental growth that we're expecting to see.
Speaker 10: On the nation's grid and really globally.
Speaker 11: We're aiming to help deliver in a way that we've
Speaker 11: never seen before, which is bringing clean, firm, sustainable power
Speaker 11: to the grid that will help.
Speaker 10: Solve some of these the issues we're going to.
Speaker 11: See with the growth of AI, the growth of electrification
Speaker 11: related to vehicles and manufacturing.
Speaker 10: And we believe that doing new.
Speaker 11: Nuclear construction in a way that is design, once, rinse
Speaker 11: and repeat many times at scale will get us into
Speaker 11: a position where we can really drive down the costs
Speaker 11: and create a product that is much needed for national
Speaker 11: security frights.
Speaker 4: How do you do this?
Speaker 3: And you can answer this question in a way that
Speaker 3: other people can't because you worked at Southern Company as
Speaker 3: operations director for the vocal units one and two, and
Speaker 3: then you also transitioned oversee Vocal units three and four.
Speaker 3: So these are very expensive. They took years, decades there
Speaker 3: were billions of dollars over budget. How do you not
Speaker 3: repeat that at the nuclear company? Like, how are you
Speaker 3: going to do that differently?
Speaker 11: Yeah, I think it's I think it's a great question.
Speaker 11: I get asked this question a lot. And Yes, my
Speaker 11: career started in the US Navy as a sub mariner
Speaker 11: working on nuclear submarines, and I've progressed through many utilities
Speaker 11: operating and maintaining nuclear facilities, and as you mentioned, had
Speaker 11: the great opportunity to help with the Vogel project, which
Speaker 11: was a monumental effort by Southern Company.
Speaker 10: Many lessons learned.
Speaker 11: The simplest way to help people understand this is this
Speaker 11: was a first of a kind build in our country
Speaker 11: with a first of a kind technology. We need to
Speaker 11: continue to use the lessons learned from projects like Vogel
Speaker 11: and many others that have occurred around the world to
Speaker 11: move us from a first of a kind project into
Speaker 11: what we call enth of a kind. So we got
Speaker 11: to get through the early stages of capturing lessons learned
Speaker 11: earned on what is a really really great design, and
Speaker 11: there's many others out there. You continue to use this
Speaker 11: same design, develop use those lessons learned. We think we
Speaker 11: can get forty percent efficiencies through lessons learned. We also
Speaker 11: believe there's twenty to thirty percent savings in the use
Speaker 11: of digital technologies, whether those be digital twins, three D scans, drones,
Speaker 11: other technologies that are available today that weren't necessarily available
Speaker 11: when these nuclear projects were occurring in the past.
Speaker 10: That is our path to.
Speaker 11: Really getting the costs of nuclear down and getting it
Speaker 11: in a position where it can provide what a lot
Speaker 11: of other forms of energy cannot provide, and that's the
Speaker 11: security to the grid to provide that firm ninety three
Speaker 11: percent plus capacity factor of clean energy.
Speaker 2: But you know, the plants that were started by Southern Company,
Speaker 2: I just want to go back to right, considered a
Speaker 2: milestone in US nuclear power construction, but they were seven
Speaker 2: years later that originally planned and a budget of more
Speaker 2: than double the preliminary projected cost of over thirty billion dollars.
Speaker 2: I would assume making nuclear power plants is difficult forgive
Speaker 2: by starcasm, but we know that this is not it.
Speaker 2: And you know, Tim and I were talking before we
Speaker 2: got going. I had a dad who's an engineer who
Speaker 2: worked in the early space program and putting men on
Speaker 2: the moon and guidance systems and the system of government
Speaker 2: contracts of like low cost provider often being at the
Speaker 2: top of the list as a priority makes me a
Speaker 2: little hinky when we're talking about nuclear power. How do
Speaker 2: we get it right? How do we do it safely?
Speaker 2: How do we do it without the cost overruns?
Speaker 10: Yeah?
Speaker 11: So I think those are all great points, and there
Speaker 11: are obviously something they're problems that we are trying to
Speaker 11: solve at the Nuclear Company, and I believe we will
Speaker 11: solve again. The number one thing is let's design a
Speaker 11: technology that works extremely well, and let's continue to rebuild
Speaker 11: that technology many times so we can really capture or
Speaker 11: the lessons learned and then get the cost benefits out
Speaker 11: of capturing those lessons.
Speaker 2: So what is the different technology from maybe what was
Speaker 2: done by the Southern Company versus what you guys are
Speaker 2: looking to do. Break it down for us.
Speaker 11: Yeah, So we are not a technology provider. We are
Speaker 11: a developer and we are a deployer. So we're we're
Speaker 11: going to develop these projects, whether you know related to
Speaker 11: where they're going to be cited, which partners we're going
Speaker 11: to work with, and then we have the team that's
Speaker 11: going to come in and perform the project management and
Speaker 11: deployment to get these from the numbers that you estimated
Speaker 11: down to half of what those have historically been through
Speaker 11: what I said before, the use of technologies, getting the
Speaker 11: right systems in place, locking that design down. Remember, when
Speaker 11: you're doing a first of a kind project, there are
Speaker 11: a lot of lessons that come out of that, and
Speaker 11: if you don't capture those lessons and continue to do it,
Speaker 11: then you've just thrown away all the value you get
Speaker 11: out of doing a technology.
Speaker 10: It'd be like if Henry.
Speaker 11: Ford developed the model T, built one and said that
Speaker 11: was way too hard to do.
Speaker 10: I'm not going to build anymore.
Speaker 11: You've got to keep iterating on that process to get
Speaker 11: it to a point that you get to the end
Speaker 11: of a kind cost on these technologies.
Speaker 3: It's a very capital intensive process, to say the least
Speaker 3: building a nuclear power plant in terms of where your
Speaker 3: role is and just where the money is coming from.
Speaker 3: Give everyone an update and you guys are a startup,
Speaker 3: but give everyone an update on how much you've raised
Speaker 3: and how you think you'll be able to get there.
Speaker 1: Yeah.
Speaker 11: So we have investors on the company side, specific to
Speaker 11: the nuclear company that are investing.
Speaker 10: To really fund our company.
Speaker 11: We'll continue through the process of a startup company to
Speaker 11: do our rounds of funding as needed. Specific to projects.
Speaker 11: We leverage public private partnerships and then we'll be pulling
Speaker 11: in different investors associated with the public private investor partnerships
Speaker 11: to drive the funding of the projects themselves. So we
Speaker 11: plan to roll out more information in the first quarter
Speaker 11: of next year related to where that fund is coming
Speaker 11: from and who those potential partners are, But for now,
Speaker 11: we don't want to share any more detailed information.
Speaker 3: Can you tell us where some of the projects you're
Speaker 3: looking at would go?
Speaker 1: Yeah?
Speaker 11: At a high level, our theory is we're going to
Speaker 11: focus on projects that we can build quickly. We believe
Speaker 11: we need to bring We need to be building now.
Speaker 11: We don't need to be waiting on technologies. There's technologies
Speaker 11: available that can be built now. So with that said,
Speaker 11: we are looking at sites and we have an algorithm
Speaker 11: that helps with our site selection process that focuses on
Speaker 11: sites that already have some form of licensing and environmental
Speaker 11: work already completed, so we could start these projects sooner
Speaker 11: rather than later.
Speaker 2: So Jo, help me understand something. So, as you said,
Speaker 2: you're a project management company, you're not a technology company,
Speaker 2: so you're not actually building them. It's like you're a middleman.
Speaker 2: It sounds like right in terms of getting these done.
Speaker 2: Why do we need a middleman? We want to just
Speaker 2: ultimately come through the government or utilities or states or
Speaker 2: power companies figuring it out. Why do we need a middleman?
Speaker 2: Is this more of an investor play, which is certainly
Speaker 2: of interest to the Bloomberg audience who always looking for
Speaker 2: a different ways of investing, But is that what this
Speaker 2: is mostly about?
Speaker 10: Yeah, I would say we're more of an orchestrator than
Speaker 10: a middleman.
Speaker 11: We certainly want to work the front end from an
Speaker 11: investment perspective and a financial perspective to make sure there's
Speaker 11: models where large utilities don't have to take this capital
Speaker 11: risk all on their balance sheet.
Speaker 10: So that's part of the problem we're solving.
Speaker 11: But we've also pulled together a team of experts that
Speaker 11: have built these projects recently in the United States and
Speaker 11: elsewhere that we're building the best project management team around
Speaker 11: to be able to go and really help the utilities
Speaker 11: and partner through our consortium to drive down these costs quicker.
Speaker 10: What we've seen in the past.
Speaker 11: In the seventies and eighties when these facilities were being built,
Speaker 11: every utility would go about this on their own and
Speaker 11: they'd all want to do it a different way, so
Speaker 11: you never truly got to that end of a kind cost.
Speaker 11: We believe by using our consortium of utilities OEMs hyper scalers,
Speaker 11: we can bring more power to this and we can
Speaker 11: we can really use the rinse and repeat method to
Speaker 11: drive these costs down.
Speaker 2: Put no, I kind of understand the model, but let
Speaker 2: me just ask you then, who takes the capital risk
Speaker 2: and who actually takes the responsibility of making sure that
Speaker 2: it's a safe plant? Ultimately?
Speaker 11: Yeah, so again public private partnership, So we'll be working
Speaker 11: with the government on part of the capital risk. Will
Speaker 11: also be focusing with our investors to take on that
Speaker 11: capital risk, so it's not put directly onto utilities or
Speaker 11: rate base with more of a build transfer model, if
Speaker 11: you will. As far as who controls the safety the legs.
Speaker 2: So does that also mean that taxpayer risk? If the
Speaker 2: government's involved, it's also taxpayer risk? Right, potentially.
Speaker 10: It could be.
Speaker 11: Now again, we'll release more information on the ACT for
Speaker 11: programs we're looking to use in the first quarter of
Speaker 11: next year, but I'll just leave it at public private partnerships.
Speaker 2: For now and then yeah, go ahead.
Speaker 10: Yeah, the safety aspects.
Speaker 11: So part of our consortium is going to be large
Speaker 11: utilities that have historically operated these facilities for years.
Speaker 10: They would be the.
Speaker 11: Licensee and the ultimate owner of these projects once, once
Speaker 11: the build is completely.
Speaker 2: Is this a model just twenty five seconds that really
Speaker 2: is for the US? Or I mean we're Europe and
Speaker 2: elsewhere outside the US are already kind of all in
Speaker 2: on nuclear? Is that part of it? And forgive me,
Speaker 2: I only got about twenty seconds here.
Speaker 10: Yeah, yeah, I'll be quick.
Speaker 11: So we initially, you know, we're building this company to
Speaker 11: help support the US market, but we are receiving a
Speaker 11: lot of interest overseas with all of the new nuclear projects.
Speaker 10: Going on there, and there's a lot of help needed
Speaker 10: in those areas.
Speaker 2: Interesting stuff. Stay in touch as you can share more
Speaker 2: with us. Joe Kletcha, chief nuclear officer of the Nuclear
Speaker 2: Company the Journal. How about you let me drive?
Speaker 1: Oh no, no, no, no, who's gone, honey?
Speaker 8: Please, I'll do the driving gravels, let's mate, I want
Speaker 8: to try it.
Speaker 3: It's good question.
Speaker 1: This is the drive to the globe. Well yd Don
Speaker 1: on Bluebird Radio.
Speaker 2: All right, TikTok, everybody, we've got just about twenty minutes left.
Speaker 2: She's under about nineteen minutes left in today's trading session.
Speaker 2: Charlie breaking down the trade on this Wednesday Thanksgiving eve.
Speaker 2: I'm looking at the major industry groups in the S
Speaker 2: and P five hundred, tim and you've got you know,
Speaker 2: most of them are down information technology. We talked about this,
Speaker 2: those big megacap tech names. They are really uh, the
Speaker 2: drag on the trade today as a group down about
Speaker 2: one point four percent. Real estate's up about seven tenths
Speaker 2: of well, say your best performing major industry group in
Speaker 2: the SMP.
Speaker 3: Okay, let's see what Kathy N. Whistle is thinking about this.
Speaker 3: She's managing director at Morgan Stanley Private Wealth Management. She
Speaker 3: joins us from Palm Beach, Florida.
Speaker 4: Kathy, Happy Thanksgiving? How are you?
Speaker 8: Hey?
Speaker 6: Happy Thanksgiving to you as well. Thanks for having me today.
Speaker 3: Yeah, thanks for coming back. Hey, we haven't had a
Speaker 3: chance to catch up with you since the election, so
Speaker 3: I just wanted to start there with politics. You are
Speaker 3: joining us from Palm Beach, Florida, so kind of close
Speaker 3: to the epicenter and.
Speaker 2: Tomorrow Lago lately. We're just wondering, just kidding, but.
Speaker 3: I am wondering sort of how you're thinking, if you're
Speaker 3: thinking anything differently given what we saw earlier this month.
Speaker 6: Yeah, absolutely, I think that, you know, history has shown
Speaker 6: that over long periods of time, the outcome of an
Speaker 6: election doesn't necessarily make an impact on the markets. But
Speaker 6: I do think that we have to think about regulations
Speaker 6: and certain changes that might be coming that will help
Speaker 6: move the markets a little bit more. And I think
Speaker 6: that's what we saw over the last couple of weeks,
Speaker 6: and what we're seeing in the last you know, last
Speaker 6: six hours or so is a little pause or a
Speaker 6: breather because we've had quite a run up leading up
Speaker 6: to the election, and of course in the last couple
Speaker 6: of weeks as well.
Speaker 2: All Right, so you know, it's funny we just come
Speaker 2: back from Schwab Impact twenty twenty four out on the
Speaker 2: West Coast, which cheap plug here. I'm just going to say,
Speaker 2: our weekend show is all about it. In the in conversations,
Speaker 2: it did feel like Kathy there's a little bit of
Speaker 2: a wait and see mode when it comes to tax policy,
Speaker 2: trade tariffs. What ultimately was said on the campaign trail
Speaker 2: and what ultimately gets put into effect. Because there's some
Speaker 2: things a president can do, there are some things you
Speaker 2: need Congress to do. So are you in is it
Speaker 2: safe to say? Also just kind of wait and see
Speaker 2: and I don't know. Maybe it's three months into the
Speaker 2: new year, maybe it's six months, maybe it's one month.
Speaker 2: How are you kind of gaming it out?
Speaker 6: Yeah? In terms of gaming it out, I think it
Speaker 6: is important to have clients start, you know, if they
Speaker 6: have been sitting in cash, it is time to put
Speaker 6: some money to work. Days where we're getting a pause
Speaker 6: or a pullback are great times to do that. There
Speaker 6: are areas that we particularly like, areas that might be
Speaker 6: deregulated a little bit more energy, financials. We're starting to
Speaker 6: see some bigger numbers hit those sectors. So I think
Speaker 6: getting clients comfortable with the idea that we have a
Speaker 6: long runway here and we want to start getting them
Speaker 6: invested if they are not fully invested at this point.
Speaker 6: So again, some money on the sidelines for short term needs,
Speaker 6: you know, cash liquid type investments, but then your longer
Speaker 6: term goals, retirement and things like that, you need to
Speaker 6: be invested in equities. And then also in terms of
Speaker 6: the fixed income side. I still really like municipal bonds.
Speaker 6: I still think they're very valuable for our clients, and
Speaker 6: they're still pricing fairly well, it's still a buyer's opportunity.
Speaker 4: Interesting.
Speaker 3: What about the cash on the sidelines right now? You
Speaker 3: mentioned it is time if you do have cash to
Speaker 3: actually move it into start doing. I will tell you, Kathy,
Speaker 3: I keep getting emails from the they're not money markets,
Speaker 3: but like the highyield savings accounts that I have like
Speaker 3: a teeny bit of money in. Yeah, and it's like
Speaker 3: it's like your interest rate is changing, you know, your
Speaker 3: APR do something tim Yeah, well no, I mean it's
Speaker 3: it's like we're paying you less to have the money
Speaker 3: in here.
Speaker 2: Yeah.
Speaker 3: The debate that Carol and I often have is like, Okay,
Speaker 3: that's seven trillion dollars that's on the sidelines and money
Speaker 3: market funds. Where does it go? Does does any of
Speaker 3: it go into the equity market, does it all go
Speaker 3: into the bond market? Does it stay in cash? What
Speaker 3: happens to it?
Speaker 6: I think it's probably a little bit of a split.
Speaker 6: So for those clients or people who are looking to
Speaker 6: get hired deal, you're seeing it all as you'll cut
Speaker 6: your hires hire.
Speaker 2: Legging to start. Hey, Kathy, hang on a second, we're
Speaker 2: going to try and clean up your line because it's
Speaker 2: a little bit not very clear. So we want to
Speaker 2: make sure we can hear you and our audience can.
Speaker 2: So we're going to reconnect with you, but we're going
Speaker 2: to come back. We're talking with Kathy and Twistle managining
Speaker 2: director at Morgan Stanley Private Wealth Management Theory.
Speaker 4: I know what's going on.
Speaker 3: Everybody's like youtubing how to safely fry turkeys right now
Speaker 3: that my brother has. I've never fried a turkey. I've
Speaker 3: I have seen it happen on FaceTime.
Speaker 4: Uh did it one year? What do you think?
Speaker 6: At the back?
Speaker 8: It was fine.
Speaker 2: We did two turkey.
Speaker 4: I was gonna ask, where do you do that? You
Speaker 4: have to have like a big old driveway.
Speaker 6: We did.
Speaker 2: I can't remember what we did. We have like a
Speaker 2: fire pit or like of something that we did, and
Speaker 2: I can't remember how my husband did it, but we
Speaker 2: had one turkey on the inside and one because he
Speaker 2: wanted to try.
Speaker 4: Like, what do you think?
Speaker 2: I don't remember.
Speaker 4: They're very quick. It's quick.
Speaker 2: Yeah, it's very crazy doing it in the oven. I
Speaker 2: like it. I like the I like the bird cooking
Speaker 2: all day. Sorry turkey, yeah all right, no pardon for me,
Speaker 2: no part for my turkey. Sorry, No, I love it.
Speaker 2: I love it cooking all day. You know, it's in
Speaker 2: the fridge, it's the brine, it's in the bag, it's.
Speaker 4: Sits for a lot happening. Now, is this what's happening
Speaker 4: at the Master Household? Already?
Speaker 3: You're going to go home tonight and there's going to
Speaker 3: be like, is the bird in the oven yet?
Speaker 4: Is that tomorrow?
Speaker 9: No?
Speaker 2: That starts I think I don't think it's it starts tomorrow.
Speaker 2: Thinks that in the morning. And uh, my daughter and
Speaker 2: my husband will do. It's really good. What about you?
Speaker 2: Will you? You just show up a yeah.
Speaker 4: We're really lucky.
Speaker 3: We're going to some cousins like we they're my parents,
Speaker 3: my mom's cousins. We're very close with them, kind of
Speaker 3: consider them like aunts and uncles. A lot of people going,
Speaker 3: a lot of little kids. We are in charge of
Speaker 3: bringing cheese, cheese, which is a really good if you
Speaker 3: know me.
Speaker 2: I hear there's a few cheese shops in Brooklyn.
Speaker 4: If you know me, this is a good thing for
Speaker 4: me to bring because I love chees well.
Speaker 2: For those who don't know Tim well, although his desk
Speaker 2: often there's like a clutter of cheese paraphernalia, usually Jesus
Speaker 2: already been eaten.
Speaker 4: It's a great way to get protein.
Speaker 2: I agree.
Speaker 4: Fill you up anyway, I agree?
Speaker 6: I agree.
Speaker 4: Is Kathy back with it?
Speaker 2: I don't know it's Kathy back, right, She's not back.
Speaker 4: So I'm still going to talk about Thanksgiving.
Speaker 8: All right.
Speaker 2: I have to say it's my favorite holiday. I don't know.
Speaker 6: I love it.
Speaker 2: I love food. I'm actually doing just for those of
Speaker 2: you if you haven't answered yet, I am doing a
Speaker 2: poll on your favorite pies. I try to do it
Speaker 2: every year, and I got to pull it up and
Speaker 2: just see what's trending in terms of uh so favorite pie, apple, pecan, pecan,
Speaker 2: pumpkin or other. I know what's a top of the list.
Speaker 4: Do you like pie, pumpkin? Do you like pie pumpkins?
Speaker 4: The top of the list.
Speaker 2: No, it's apple thirty six percent. That's their favorite pie.
Speaker 2: Huh yeah, the pumpkin thirty percent. Hey, Kathy's back with us.
Speaker 2: Kathy antwhistle over at Morgan Stanley. Kathy, forgive the technical
Speaker 2: problems got about forty five seconds. Your parting thought, as
Speaker 2: we get ready just another month or so and we're
Speaker 2: done with twenty twenty four, how are you thinking about
Speaker 2: twenty twenty five.
Speaker 6: Yes, I think it's time to think about that. To
Speaker 6: position properly, you want to be invested in equities. You
Speaker 6: want to take opportunities of pullbacks. We haven't had many lately,
Speaker 6: but take those opportunities to leg into the market, and
Speaker 6: in terms of the cash on the sidelines, if you
Speaker 6: don't need it for short term, you need to put
Speaker 6: that to work. I do think that will also drive
Speaker 6: the equity markets higher by having these these people coming
Speaker 6: off the sidelines and into the market, So we'll also
Speaker 6: get some appreciation there as well.
Speaker 2: All Right, glad we could wrap up with you. Happy Thanksgiving.
Speaker 2: Kathy and Twhistle. She's managing director at Morgans Stale Private
Speaker 2: Wealth Management, joining us on this Wednesday from Palm Beach, Florida.
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