WEBVTT - Single Best Idea with Tom Keene: Dominic Konstam

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, Single Best Idea. It

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<v Speaker 1>is a podcast. Our strategy is to give you a podcast.

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<v Speaker 1>It's sharp and focused. It's not twenty minutes, it's about

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<v Speaker 1>six minutes long. We are humbled by what we have

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<v Speaker 1>seen so far. We're rolling out very slowly, figuring it out.

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<v Speaker 1>And what we're going to do today is focus on

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<v Speaker 1>one guest. Dominic Constam is a tour de force with

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<v Speaker 1>Parchment from Cambridge and Oxford. He has been a fixed

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<v Speaker 1>year on the London, New York axis for Global Wall

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<v Speaker 1>Street for decades. You'll hear about that here later in

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<v Speaker 1>Single Best Idea at Credit Suite, number of other depots

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<v Speaker 1>as well. Now at Missuo with Steve Shudel. Can't say

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<v Speaker 1>enough about the intelligence of his work. I really only

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<v Speaker 1>equated with Michael Mobison of Morgan Stanley, someone really trying

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<v Speaker 1>to think bigger and broader. Today we went more narrow

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<v Speaker 1>with doctor Constem and to begin we had to look

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<v Speaker 1>at the Bloomberg headlines of Japan unraveling. I don't want

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<v Speaker 1>to overplay it, but our Tokyo News Bureau making clear

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<v Speaker 1>that after one intervention, after two interventions, and now the

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<v Speaker 1>discussion of weaker Japanese yen. Well, the government intervene again.

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<v Speaker 1>As of this taping, we do not see that. But

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<v Speaker 1>the fact is it is a Japan after an inflation

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<v Speaker 1>and reflation experiment in some form of modest crisis. Dominic

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<v Speaker 1>constem on Japan.

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<v Speaker 2>I think it's too soon to say. I think you

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<v Speaker 2>can be so somewhat optimistic that Japan is getting out

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<v Speaker 2>of its hole. I mean, you've now taken interest rates

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<v Speaker 2>back to like twenty ten, twenty eleven levels. You know,

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<v Speaker 2>there's the lost thing. You know, there's been a lost decade,

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<v Speaker 2>the lost decades before sort of thing. But they've they've

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<v Speaker 2>kind of got themselves out of that whole. So I

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<v Speaker 2>think the outlook for Japan is a you know, somewhat constructive,

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<v Speaker 2>especially if they can get a virtuous circle of wage

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<v Speaker 2>inflation and price inflation, albeit at low levels, that that

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<v Speaker 2>keeps a positive interest rate, I mean positive interest rates.

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<v Speaker 2>You know, will will you know, our good thing in

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<v Speaker 2>terms of eternal capital, and I'll support risky, risky asset

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<v Speaker 2>markets as well. So that's kind of the idea, this

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<v Speaker 2>sort of adjustment. And Japan, you know, traditionally has been

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<v Speaker 2>obviously a big exporter of capital because there haven't been

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<v Speaker 2>opportunities at that home in Japan, and that's why you know,

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<v Speaker 2>they've had this sort of massive kind of count surface

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<v Speaker 2>and over time that's obviously, you know, is correcting in

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<v Speaker 2>a hopefully sustainable way.

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<v Speaker 1>Dominic constant there and of course wonderful talk and what

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<v Speaker 1>the FED is doing. He says they will be patient.

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<v Speaker 1>He says, it's a delicate task not to reduce reduce demand,

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<v Speaker 1>and we'll see how the FED does. Long ago and

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<v Speaker 1>our way. Sarah Yango of Bloomberg ELP, he came up

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<v Speaker 1>to me and said, Tom, we want we want to

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<v Speaker 1>do Bloomberg terminal sales to colleges to their investment clubs.

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<v Speaker 1>And I said, yeah, yeah, yeah, it sounds great, Sarah,

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<v Speaker 1>let's do it. And it turned out to be a

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<v Speaker 1>ginormous success. In the modern day. Across this nation there

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<v Speaker 1>are all sorts of universities and colleges with finance major

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<v Speaker 1>investment clubs where they get access to the Bloomberg terminal

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<v Speaker 1>for an extremely reasonable incentive package. We're obviously incentive to

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<v Speaker 1>have the financial employees of the future to be conversant

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<v Speaker 1>with the meal ticket here at Bloomberg. The Bloomberg professional service.

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<v Speaker 1>That was not true many many decades ago. I asked

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<v Speaker 1>Dominie Constam about Brexit and he talked about his investment club.

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<v Speaker 1>A number of decades in the.

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<v Speaker 2>Past, I went to school with Nigel farreansh. I was

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<v Speaker 2>in the same class Nigel Faris. There are only six

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<v Speaker 2>of us. We started the investment club together. His father

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<v Speaker 2>was very kind and helped us in terms of doing

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<v Speaker 2>some of those trades. So I feel very close to

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<v Speaker 2>the to the sort of Brexit experiment. But I have

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<v Speaker 2>to say it's been a complete failure and I was

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<v Speaker 2>against it, and I'm I'm a bit sad that Nigel

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<v Speaker 2>went down that road, but yes, it's it was. It

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<v Speaker 2>was that, you know, the British people were told things

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<v Speaker 2>that would happen and they didn't happen. You know, they

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<v Speaker 2>would I had a vote again, I think they would

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<v Speaker 2>not vote the same way. But again it does reflect

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<v Speaker 2>an underlying discontent with the population.

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<v Speaker 1>They did not have a Bloomberg terminal. That's probably why

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<v Speaker 1>the mess of Brexit happened. Nigel Ferraud and Dominic Constant

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<v Speaker 1>years ago in the United Kingdom, and of course now

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<v Speaker 1>it is the election. Look to our London Bureau for

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<v Speaker 1>coverage of the British election. There's so many elections coming up,

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<v Speaker 1>the dates, my head's spinning. Tomorrow a US debate, Thank

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<v Speaker 1>you Joe Matthew, Kayley Lynes and David Gera for prepper

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<v Speaker 1>towards the CNN debate that you'll see tomorrow. I believe

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<v Speaker 1>on the thirtieth there's a French election that's a weekend vote,

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<v Speaker 1>and then I believe it's easy to remember, the fourth

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<v Speaker 1>of July there's a United Kingdom vote. I have to

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<v Speaker 1>remind John Farrell that's when the Colonies won. The fourth

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<v Speaker 1>of July there's a United Kingdom election, and then three

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<v Speaker 1>days after that there's the final election in France, and

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<v Speaker 1>then after that, a million months and weeks away is

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<v Speaker 1>a US election November fifth. Stay with us with all

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<v Speaker 1>of our politics. David Gura leading our effort there, of course,

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<v Speaker 1>looked at the Big take as well out on Apple

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<v Speaker 1>Podcasts from New York. All I can say we're on

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<v Speaker 1>Apple Podcasts single best I did