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
00:00:11,560 --> 00:00:15,560
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 --> 00:00:22,319
Speaker 1: at Bloomberg dot com slash podcast. Let's get over to

7
00:00:22,760 --> 00:00:26,240
Speaker 1: back to the markets and get over to Wells Fargo Security.

8
00:00:26,239 --> 00:00:29,240
Speaker 1: The head of equity Strategy joins us Chris Harvard to

9
00:00:29,280 --> 00:00:31,800
Speaker 1: talk about what's going on in these markets, and Chris,

10
00:00:31,800 --> 00:00:34,159
Speaker 1: I guess you know your job has been made a

11
00:00:34,159 --> 00:00:37,320
Speaker 1: lot more difficult the last few days because this geopolitical

12
00:00:37,440 --> 00:00:39,720
Speaker 1: risk has to be harder to forecast than anything that

13
00:00:39,800 --> 00:00:44,640
Speaker 1: Fed's ever done. Yeah. I think that's right. The geopolitical

14
00:00:44,920 --> 00:00:49,800
Speaker 1: is very hard to forecast. We're very headline driven and

15
00:00:49,840 --> 00:00:52,000
Speaker 1: it's just hard to parse out. But but I think

16
00:00:52,680 --> 00:00:56,200
Speaker 1: getting back to the FED longer term, it's really about

17
00:00:56,240 --> 00:00:58,360
Speaker 1: the FED, and we can talk about that as much

18
00:00:58,360 --> 00:01:00,560
Speaker 1: sure as loot as you want, but until we get

19
00:01:00,640 --> 00:01:05,560
Speaker 1: that some sort of resolution on Ukraine Russia, it's going

20
00:01:05,600 --> 00:01:08,679
Speaker 1: to continue to cause volatility. But again, I think the

21
00:01:08,680 --> 00:01:11,479
Speaker 1: bigger picture, which I really want to focus on longer term,

22
00:01:11,640 --> 00:01:13,200
Speaker 1: is the FED and what the FED is going to do.

23
00:01:13,520 --> 00:01:15,280
Speaker 1: All right, let's go there, Chris. If you look at

24
00:01:15,280 --> 00:01:18,240
Speaker 1: the w I r P function on the Bloomer terminal,

25
00:01:18,760 --> 00:01:21,720
Speaker 1: we're uh, it's new and improved. It is new and improved.

26
00:01:21,760 --> 00:01:25,400
Speaker 1: Love it pretty cool? Um? Talking about seven rate increases

27
00:01:25,440 --> 00:01:28,640
Speaker 1: in two that seems kind of wacky to me to

28
00:01:28,800 --> 00:01:30,920
Speaker 1: to use the cf A term. What do you think

29
00:01:32,280 --> 00:01:36,840
Speaker 1: that's your scientific term? I see, um yea. When I

30
00:01:36,840 --> 00:01:39,800
Speaker 1: find what I find a little wacky is that they're

31
00:01:39,840 --> 00:01:43,919
Speaker 1: still buying bonds. They've let seven heights come into the market,

32
00:01:43,959 --> 00:01:46,000
Speaker 1: We're still buying bonds. I think when we look back

33
00:01:46,000 --> 00:01:48,880
Speaker 1: over time, we're gonna we're gonna realize, we're gonna scratch

34
00:01:48,920 --> 00:01:51,240
Speaker 1: our heads. Why did we continue to do this? Why

35
00:01:51,240 --> 00:01:54,360
Speaker 1: did we Why did the Fed taper so long? And

36
00:01:54,480 --> 00:01:57,720
Speaker 1: tapering did cause some of the inflation that we're seeing. Um,

37
00:01:57,840 --> 00:02:01,040
Speaker 1: bigger picture in the Fed open the door. The FED

38
00:02:01,160 --> 00:02:04,840
Speaker 1: really allowed themselves a lot of optionality the last meeting,

39
00:02:05,200 --> 00:02:07,640
Speaker 1: and I think they have to reduce that optionality because

40
00:02:07,680 --> 00:02:09,880
Speaker 1: people are having a hard time planning. They don't know

41
00:02:09,960 --> 00:02:12,839
Speaker 1: if it's it's twenty five or fifty. Uh, they don't

42
00:02:12,880 --> 00:02:14,919
Speaker 1: know if it's going to be twenty five at a clip.

43
00:02:15,320 --> 00:02:16,880
Speaker 1: They really don't know what's going to happen when the

44
00:02:16,919 --> 00:02:19,239
Speaker 1: balance sheet. And I think the Fed has to reduce

45
00:02:19,240 --> 00:02:21,520
Speaker 1: their optionality. They have to give people a little bit

46
00:02:21,520 --> 00:02:24,280
Speaker 1: more clarity on the path that they're they're going to take.

47
00:02:24,960 --> 00:02:28,839
Speaker 1: And for us, we're we're really focused on that March

48
00:02:28,919 --> 00:02:31,760
Speaker 1: meeting because I don't think the die is cast just yet.

49
00:02:32,120 --> 00:02:35,640
Speaker 1: If they get very aggressive the second half that economically

50
00:02:35,680 --> 00:02:38,160
Speaker 1: will be a lot tougher. If they're much more moderate,

51
00:02:38,600 --> 00:02:41,640
Speaker 1: I think we can have a decent year and I

52
00:02:41,680 --> 00:02:44,000
Speaker 1: think the economy will hold up just just five. But

53
00:02:44,080 --> 00:02:45,840
Speaker 1: you do think we're going to see a cut, right?

54
00:02:45,919 --> 00:02:47,920
Speaker 1: You mean just don't know if it's I mean hike.

55
00:02:47,960 --> 00:02:49,200
Speaker 1: You just don't know if it's gonna be twenty five

56
00:02:49,200 --> 00:02:54,080
Speaker 1: basis points or fifty. That's right, that's right. So the

57
00:02:54,120 --> 00:02:58,120
Speaker 1: markets telling it's twenty five. That seems about right. Um.

58
00:02:58,160 --> 00:03:02,200
Speaker 1: The Fed hasn't been real clear about things, but they

59
00:03:02,880 --> 00:03:06,200
Speaker 1: it would be surprising to me that they if they

60
00:03:06,240 --> 00:03:10,760
Speaker 1: go fifty. Um, But again, anything is on the table.

61
00:03:10,960 --> 00:03:13,400
Speaker 1: They really need to provide a little bit more clarity.

62
00:03:13,880 --> 00:03:16,320
Speaker 1: And that's what's happening, is a market is just uncertain

63
00:03:16,360 --> 00:03:19,040
Speaker 1: about what they're doing, and the speed of their turnaround

64
00:03:19,200 --> 00:03:22,799
Speaker 1: is often surprised people. So until we get that March meeting,

65
00:03:23,280 --> 00:03:24,880
Speaker 1: it's just going to be a lot of all, a

66
00:03:24,880 --> 00:03:29,040
Speaker 1: lot of uncertainty and a lot of guessing by market participants. Chris,

67
00:03:29,040 --> 00:03:32,480
Speaker 1: we're pretty much through this earning season, Um, what are

68
00:03:32,520 --> 00:03:35,320
Speaker 1: some of your takeaways here? Did it leave any maybe

69
00:03:35,400 --> 00:03:38,280
Speaker 1: valuation risk you might have felt in this market? Yeah,

70
00:03:38,360 --> 00:03:43,840
Speaker 1: forecasts have been slashed for earning growth exactly. So one

71
00:03:43,880 --> 00:03:46,280
Speaker 1: of the things that I think is happening under the scene,

72
00:03:46,280 --> 00:03:48,920
Speaker 1: we talk a lot about the supply chain. Supply chain

73
00:03:49,000 --> 00:03:51,520
Speaker 1: is kind of get gotten swept away from the headlines

74
00:03:51,560 --> 00:03:55,000
Speaker 1: with Ukraine and Russia. But one of the positives that

75
00:03:55,080 --> 00:03:58,440
Speaker 1: I've seen is the average company is having a difficult

76
00:03:58,440 --> 00:04:01,040
Speaker 1: time with the supply chain. But if you look at

77
00:04:01,120 --> 00:04:04,920
Speaker 1: some of the larger companies, UM, Apple, p and even

78
00:04:04,960 --> 00:04:09,320
Speaker 1: Walmart yesterday indicated this. They seem to indicate that they

79
00:04:09,360 --> 00:04:12,160
Speaker 1: could use their heft and their might to wrestle the

80
00:04:12,160 --> 00:04:15,440
Speaker 1: supply chain, and they did indicate that it seems for

81
00:04:15,480 --> 00:04:18,040
Speaker 1: them the supply chain are the worst of the supply

82
00:04:18,120 --> 00:04:20,479
Speaker 1: chain is over which I think is a good harbinger

83
00:04:20,520 --> 00:04:23,000
Speaker 1: for other companies. The other thing I would say about

84
00:04:23,040 --> 00:04:26,120
Speaker 1: earning season is we've been talking about higher prices and

85
00:04:26,200 --> 00:04:28,400
Speaker 1: higher prices, and I've never seen this kind of pricing

86
00:04:28,680 --> 00:04:31,080
Speaker 1: in the summertime. I was telling class, we've never seen

87
00:04:31,080 --> 00:04:34,719
Speaker 1: this kind of pricing environment might twenty career. Now. What

88
00:04:34,760 --> 00:04:37,080
Speaker 1: we're seeing on pricing is pricing is still going higher,

89
00:04:37,320 --> 00:04:39,960
Speaker 1: but at the decelerating rate. And one of the things

90
00:04:40,000 --> 00:04:43,200
Speaker 1: we've been talking about, does the consumers start to bok

91
00:04:43,200 --> 00:04:46,520
Speaker 1: at some of these higher prices? Is the consumer is

92
00:04:46,560 --> 00:04:48,920
Speaker 1: demand a little bit more elastic now than it was

93
00:04:49,040 --> 00:04:52,080
Speaker 1: last year, since pent up demand has been satisfied, and

94
00:04:52,160 --> 00:04:54,200
Speaker 1: it looks like we're beginning to see that, and I

95
00:04:54,240 --> 00:04:58,520
Speaker 1: think that's that's potentially a plus when it comes to inflation. Hey, Chris,

96
00:04:58,760 --> 00:05:00,960
Speaker 1: you guys are walls Fargo You over huts and yards, right,

97
00:05:02,560 --> 00:05:05,159
Speaker 1: We're that's that's we have a number of offices, but

98
00:05:05,200 --> 00:05:07,960
Speaker 1: one of them is hutsing yards. That's where trading Florida. Yeah,

99
00:05:07,960 --> 00:05:09,680
Speaker 1: I mean, it's what's it like over there? I mean,

100
00:05:09,680 --> 00:05:12,760
Speaker 1: are people, as I know, they opened this hut they

101
00:05:12,800 --> 00:05:15,440
Speaker 1: open huts and yards. It's this amazing office complex and

102
00:05:15,600 --> 00:05:18,560
Speaker 1: all the far west side of Manhattan, but High Line

103
00:05:18,600 --> 00:05:20,960
Speaker 1: over there exactly. But it seemed to open just before

104
00:05:21,000 --> 00:05:23,760
Speaker 1: the pandemic dill are put in. Yep, that's very cool.

105
00:05:24,200 --> 00:05:26,000
Speaker 1: What's it like over there? Because are there people there

106
00:05:26,080 --> 00:05:29,640
Speaker 1: or is it a ghost town? Um? There are people there.

107
00:05:30,160 --> 00:05:31,960
Speaker 1: And what I would say, so I live in New

108
00:05:32,000 --> 00:05:34,280
Speaker 1: York or I live in the city, And what I

109
00:05:34,279 --> 00:05:37,840
Speaker 1: would say is weather. On Saturday, the weather was nice

110
00:05:37,880 --> 00:05:40,359
Speaker 1: and people were out and about and and it looked

111
00:05:40,400 --> 00:05:43,680
Speaker 1: like a normal day and spring day. Whether it gets colder,

112
00:05:43,760 --> 00:05:46,240
Speaker 1: people come back inside. I think the demand is there.

113
00:05:46,240 --> 00:05:48,560
Speaker 1: I think people want to get out. I think they're

114
00:05:48,600 --> 00:05:51,000
Speaker 1: willing to get out. And I think in the springtime

115
00:05:51,600 --> 00:05:53,800
Speaker 1: things are going to look a lot more normal. I

116
00:05:53,839 --> 00:05:56,719
Speaker 1: think people are a lot more comfortable. I also have

117
00:05:57,160 --> 00:05:58,760
Speaker 1: a child that goes to school in the city, and

118
00:05:58,760 --> 00:06:01,800
Speaker 1: I talked a lot of different parents and they're they're

119
00:06:01,800 --> 00:06:03,880
Speaker 1: comfortable and they're ready to go. Yeah, I think I

120
00:06:04,240 --> 00:06:06,120
Speaker 1: agree with you. I think the city is going to

121
00:06:06,240 --> 00:06:10,960
Speaker 1: explode in the next month or so. Blossom blossoms are

122
00:06:11,080 --> 00:06:13,120
Speaker 1: much better. Just doesn't explode. Yeah, it's just gonna be

123
00:06:13,320 --> 00:06:15,480
Speaker 1: I think there's a lot of pent up there. Chris Harvey,

124
00:06:15,520 --> 00:06:22,880
Speaker 1: head of equity strategist at Wells Fargo Securities. Let's tuck

125
00:06:23,000 --> 00:06:24,880
Speaker 1: global energy. It's not too much of a stretch. They're

126
00:06:24,920 --> 00:06:27,120
Speaker 1: about to go from autos two global energy. But we

127
00:06:27,200 --> 00:06:31,599
Speaker 1: bring an Aerngy guill Day kpmg u S Energy sector leader, Angy.

128
00:06:31,680 --> 00:06:33,920
Speaker 1: I'm looking at oil here. You know, we're in and

129
00:06:33,960 --> 00:06:38,200
Speaker 1: around ninety dollars a barrel. It feels like it's pretty

130
00:06:38,200 --> 00:06:41,120
Speaker 1: comfortable up here. How do you think about global oil

131
00:06:41,160 --> 00:06:43,680
Speaker 1: going forward, given maybe some of these political tensions we're

132
00:06:43,680 --> 00:06:47,120
Speaker 1: seeing right now. Well, thanks Paul and Matt for having me.

133
00:06:47,320 --> 00:06:51,280
Speaker 1: You know, geo political tensions and oil prices go hand

134
00:06:51,320 --> 00:06:54,080
Speaker 1: in hand. Um, we've seen that for years. I think

135
00:06:54,120 --> 00:06:57,280
Speaker 1: the real question and the challenge that we're seeing now

136
00:06:57,480 --> 00:07:00,480
Speaker 1: is the under supply in the market. You know, inventories

137
00:07:00,480 --> 00:07:03,200
Speaker 1: are the lowest level since two thousand three, and so

138
00:07:03,240 --> 00:07:06,200
Speaker 1: that's a real challenge for us. And there's several reasons

139
00:07:06,200 --> 00:07:09,479
Speaker 1: for that, but that's that's the thing we've got to overcome. Yeah,

140
00:07:09,560 --> 00:07:12,360
Speaker 1: and what's interesting to me, we've been talking about this

141
00:07:12,400 --> 00:07:14,840
Speaker 1: for a few days now and people have been coming

142
00:07:14,840 --> 00:07:17,520
Speaker 1: on saying, you know what, there's not the spare capacity

143
00:07:17,520 --> 00:07:20,600
Speaker 1: out there that you think there is. UM. On the

144
00:07:20,640 --> 00:07:24,200
Speaker 1: other hand, we saw oil prices come down pretty drastically

145
00:07:24,320 --> 00:07:28,120
Speaker 1: yesterday and this morning. Now they're bouncing back to some extent.

146
00:07:28,200 --> 00:07:32,760
Speaker 1: But is the idea that Iran is getting further with

147
00:07:32,840 --> 00:07:35,520
Speaker 1: nuclear talks and maybe the market thought and that capacity

148
00:07:35,600 --> 00:07:39,600
Speaker 1: could come into the market. Well, that's that's an interesting

149
00:07:40,440 --> 00:07:46,720
Speaker 1: question because opeq Uh plus their production quotas have not

150
00:07:47,240 --> 00:07:51,480
Speaker 1: been with the target output levels that they've they've committed to,

151
00:07:51,960 --> 00:07:54,240
Speaker 1: and so if you ask yourself, why is that. I

152
00:07:54,280 --> 00:07:59,000
Speaker 1: think OPEC is looking by nature, it's a cautious group,

153
00:07:59,120 --> 00:08:02,440
Speaker 1: so they're looking long term out in the next seven

154
00:08:02,720 --> 00:08:07,520
Speaker 1: eight quarters before they they really unload their production. So

155
00:08:08,000 --> 00:08:11,640
Speaker 1: I think i RAN definitely definitely played a role in

156
00:08:11,720 --> 00:08:15,400
Speaker 1: that UM. You know, if a deal is reached, that

157
00:08:15,480 --> 00:08:19,440
Speaker 1: could be anywhere from five hundred thousand, seven hundred thousand

158
00:08:19,480 --> 00:08:22,200
Speaker 1: barols per day coming back on the market, maybe some

159
00:08:22,320 --> 00:08:24,920
Speaker 1: even say as much as a as a million barrels

160
00:08:24,920 --> 00:08:26,840
Speaker 1: put per day over the course of the year. So

161
00:08:26,920 --> 00:08:30,960
Speaker 1: that's definitely something I think OPEK is is watching. Andy,

162
00:08:31,040 --> 00:08:33,839
Speaker 1: are you surprised that we haven't seen more production come

163
00:08:33,840 --> 00:08:36,640
Speaker 1: on from your good friends down in Texas and Oklahoma,

164
00:08:36,760 --> 00:08:41,440
Speaker 1: the oil patch, the shale folks. Well, not really, because

165
00:08:41,480 --> 00:08:45,800
Speaker 1: the investor sentiment has changed. You know, oil and gas

166
00:08:45,840 --> 00:08:50,080
Speaker 1: companies have been directed by the capital markets and the

167
00:08:50,160 --> 00:08:54,760
Speaker 1: investment community not to grow production. They have rewarded them

168
00:08:54,960 --> 00:08:58,280
Speaker 1: on returning cash to shareholders, and so that's what they've

169
00:08:58,280 --> 00:09:01,200
Speaker 1: focused on. They've really focused on getting their costs down,

170
00:09:01,720 --> 00:09:05,040
Speaker 1: you know, operating with discipline and returning cash to shareholders.

171
00:09:05,040 --> 00:09:09,600
Speaker 1: So it's not unexpected to me that they aren't, you know,

172
00:09:10,240 --> 00:09:14,880
Speaker 1: returning to uh, very active drink. We have senior counts increase,

173
00:09:15,640 --> 00:09:19,040
Speaker 1: but they're being very directed and by their shareholders that

174
00:09:19,120 --> 00:09:22,720
Speaker 1: they needed to return cash discipline. Surprised me, that's for sure.

175
00:09:22,720 --> 00:09:25,240
Speaker 1: Are Gilday, thanks so much for joining US national sector

176
00:09:25,320 --> 00:09:29,080
Speaker 1: leader Energy, Natural Resources and Chemicals at KPMG. A proud

177
00:09:29,240 --> 00:09:36,760
Speaker 1: graduate of Texas A and M. Right now springing, David

178
00:09:36,800 --> 00:09:40,480
Speaker 1: Dietz's a Managing Principal and senior portfolio manager strategists at

179
00:09:40,679 --> 00:09:45,040
Speaker 1: p PAC Gladstone Bank. David, we got geopolitical risk, we've

180
00:09:45,040 --> 00:09:48,560
Speaker 1: got rising interest rates, we've got slowing economy. We even

181
00:09:48,600 --> 00:09:51,560
Speaker 1: have some earnings acceleration kind of slowing down in terms

182
00:09:51,559 --> 00:09:53,920
Speaker 1: of the earnings growth there. How are you thinking about

183
00:09:53,960 --> 00:09:58,600
Speaker 1: this market, David, Well, certainly, it's a lot of things

184
00:09:58,640 --> 00:10:00,800
Speaker 1: to worry about. It's a very ste ball of worry

185
00:10:00,840 --> 00:10:03,079
Speaker 1: to add to those items. Of course, you've got a

186
00:10:03,120 --> 00:10:06,360
Speaker 1: federal Reserve which is by by all accounts, is poised

187
00:10:06,360 --> 00:10:09,240
Speaker 1: to raise interest rates come March. We don't know where

188
00:10:09,240 --> 00:10:11,640
Speaker 1: there's twenty five or fifty. And of course we've also

189
00:10:11,720 --> 00:10:16,000
Speaker 1: got this UH options exploration Day which is enhancing the volatility.

190
00:10:16,280 --> 00:10:21,440
Speaker 1: So um, you know, it's we've had three great years.

191
00:10:21,480 --> 00:10:25,200
Speaker 1: This year has started uh kind of poorly here, SMP

192
00:10:25,280 --> 00:10:28,959
Speaker 1: fire down eight percent, the Barclays Aggregate, the high quality

193
00:10:28,960 --> 00:10:32,079
Speaker 1: bonded next down four percent. So investors really wondering where

194
00:10:32,120 --> 00:10:34,520
Speaker 1: to go with their money here. But you know, the

195
00:10:34,520 --> 00:10:36,360
Speaker 1: flip side is a lot of the worries that we're

196
00:10:36,360 --> 00:10:39,920
Speaker 1: gonna be talking about today and are pretty well, I think,

197
00:10:40,000 --> 00:10:42,680
Speaker 1: Chris Ston, you know, we'll have to see. Certainly, let's

198
00:10:42,720 --> 00:10:48,240
Speaker 1: look at the Ukraine Russian situation. Historically, these geopolitical events

199
00:10:48,320 --> 00:10:52,520
Speaker 1: are short term problems for the markets. Um, you know,

200
00:10:52,640 --> 00:10:54,800
Speaker 1: I don't think it's gonna affect anyone's plans to go

201
00:10:54,800 --> 00:10:57,120
Speaker 1: out for dinner this weekend. I don't think anyone's good

202
00:10:57,160 --> 00:10:59,640
Speaker 1: defer a car purchase because of what's going on now.

203
00:10:59,679 --> 00:11:02,520
Speaker 1: The bad news is, I think it could, depending on

204
00:11:02,520 --> 00:11:05,640
Speaker 1: how things work out, raise energy prices. But guess what,

205
00:11:05,840 --> 00:11:08,640
Speaker 1: Unlike the nineteen seventies, were energy independent here, so we

206
00:11:08,679 --> 00:11:11,640
Speaker 1: have a lot more control. So I wouldn't let be that,

207
00:11:12,040 --> 00:11:14,760
Speaker 1: let that be the reason why you dumped your portfolio. Obviously,

208
00:11:15,040 --> 00:11:17,800
Speaker 1: what the FED does with interest rates and the risk

209
00:11:17,840 --> 00:11:22,400
Speaker 1: of a policy error is probably issue number one for investors. Yeah, well,

210
00:11:22,400 --> 00:11:24,960
Speaker 1: in the bat The other bad news is, even if

211
00:11:25,000 --> 00:11:27,679
Speaker 1: you want to purchase the car, where you're gonna find it,

212
00:11:28,160 --> 00:11:31,000
Speaker 1: nobody's got anything on lots right, And if you do,

213
00:11:31,240 --> 00:11:35,960
Speaker 1: see like a used vehicle, late model along the lines

214
00:11:36,000 --> 00:11:38,000
Speaker 1: of what you're looking for, is gonna cost ten thousand

215
00:11:38,280 --> 00:11:40,559
Speaker 1: dollars more than the new M S r P. So

216
00:11:41,920 --> 00:11:45,480
Speaker 1: this kind of scarcity, this kind of inflation, it's starting

217
00:11:45,480 --> 00:11:49,960
Speaker 1: to eat into corporate earnings. Does that worry you? Everything

218
00:11:50,040 --> 00:11:54,480
Speaker 1: worries me, But you know, so the inflation problem is,

219
00:11:54,960 --> 00:11:57,800
Speaker 1: you know, really our most important problem, because ultimately that's

220
00:11:57,800 --> 00:11:59,760
Speaker 1: the only reason the FED is gonna hike rates. They

221
00:11:59,760 --> 00:12:01,559
Speaker 1: don't just have higher interest rates that they don't have

222
00:12:01,559 --> 00:12:05,560
Speaker 1: a problem to solve. Um. The reasons for optimism there

223
00:12:05,880 --> 00:12:09,120
Speaker 1: is where our car availability going to be a year

224
00:12:09,120 --> 00:12:11,160
Speaker 1: for now, and I would submit that a lot of

225
00:12:11,200 --> 00:12:16,040
Speaker 1: the inflation is due to pandemic supply disruptions. So you've

226
00:12:16,080 --> 00:12:18,000
Speaker 1: got like seventy five ships off the port of Los

227
00:12:18,040 --> 00:12:19,720
Speaker 1: Angeles where we're gonna be a year from now, I

228
00:12:19,840 --> 00:12:22,520
Speaker 1: would submit and hope there's gonna be less depending on where.

229
00:12:22,520 --> 00:12:25,360
Speaker 1: There's another area. You've got about five million people who

230
00:12:25,400 --> 00:12:27,440
Speaker 1: don't want to return to work. A lot of those

231
00:12:27,440 --> 00:12:30,080
Speaker 1: people are concerned about illness and so forth. So I

232
00:12:30,120 --> 00:12:33,559
Speaker 1: think there's reasons to believe that inflation could relax a

233
00:12:33,600 --> 00:12:37,600
Speaker 1: little bit. Otherwise, there's no question about there's other types

234
00:12:37,640 --> 00:12:39,880
Speaker 1: of inflation. If it gets into the you know, wages

235
00:12:39,920 --> 00:12:42,880
Speaker 1: and so forth, that it may be more difficult. But

236
00:12:42,960 --> 00:12:45,880
Speaker 1: to the extent that inflation abates a little bit, defed

237
00:12:45,920 --> 00:12:48,680
Speaker 1: maybe less aggressive, and that could allow for stocks to

238
00:12:48,720 --> 00:12:51,199
Speaker 1: have a rebound here. All right, David, thanks so much.

239
00:12:51,320 --> 00:12:54,440
Speaker 1: We always appreciate getting your perspective on these markets. Here

240
00:12:54,480 --> 00:12:57,480
Speaker 1: the benefit of your experience, David Deed's managing principle and

241
00:12:57,480 --> 00:13:03,520
Speaker 1: senior portfolio strategist at Pepack Gladstone Bank. Where is that paste?

242
00:13:03,520 --> 00:13:05,839
Speaker 1: It's in New Jersey, baby, kind of western New Jersey

243
00:13:05,840 --> 00:13:09,360
Speaker 1: and horse country out west of you. Yes, and but

244
00:13:09,400 --> 00:13:11,560
Speaker 1: there's an office in Summit, because there's everything's in Summit.

245
00:13:11,600 --> 00:13:14,920
Speaker 1: It's like the blooming financial metropolis of north central New Jersey.

246
00:13:15,000 --> 00:13:17,079
Speaker 1: Day I'll get the invite. Yes, someday you get to invite,

247
00:13:17,080 --> 00:13:19,040
Speaker 1: we'll get you out there. Canuebra get chat on the

248
00:13:19,080 --> 00:13:21,200
Speaker 1: golf course. And Mr Dietz is remember there as well.

249
00:13:21,679 --> 00:13:24,000
Speaker 1: Uh so looking at these markets here again, kind of

250
00:13:24,120 --> 00:13:26,280
Speaker 1: rolling over a little bit, not gonna oversell at the

251
00:13:26,320 --> 00:13:30,240
Speaker 1: SMP off about four tenths of one per cent geopolitical

252
00:13:30,320 --> 00:13:37,360
Speaker 1: issues at the four. One of the things that I

253
00:13:37,400 --> 00:13:41,600
Speaker 1: do in Jamaica, believe it or not, and uh it's embarrassing,

254
00:13:41,679 --> 00:13:44,840
Speaker 1: is I play video games one there. Sometimes I just

255
00:13:44,880 --> 00:13:47,680
Speaker 1: bring my consoles with me and play everywhere. And I

256
00:13:47,679 --> 00:13:49,720
Speaker 1: want to bring Grant Johnson right now is the CEO

257
00:13:50,120 --> 00:13:53,680
Speaker 1: of E Sports Entertainment Group. The ticker is pretty sweet

258
00:13:53,840 --> 00:13:58,000
Speaker 1: g nb L Gamble it's an online gambling platform. I

259
00:13:58,000 --> 00:14:01,320
Speaker 1: don't get exactly, um what you're doing, but I was

260
00:14:01,400 --> 00:14:04,600
Speaker 1: thinking about it reading through it, Grant, I love to

261
00:14:04,679 --> 00:14:08,719
Speaker 1: play you know, Halo or Call of Duty or a

262
00:14:08,840 --> 00:14:13,560
Speaker 1: Fortnite or uh Player Unknown battle Ground with a group

263
00:14:13,600 --> 00:14:15,480
Speaker 1: of friends, and the only thing will make it better

264
00:14:15,520 --> 00:14:17,720
Speaker 1: is if I could bet with them at the same time.

265
00:14:18,640 --> 00:14:20,680
Speaker 1: It would be sweet if I could take out like

266
00:14:20,760 --> 00:14:23,400
Speaker 1: my brother or my cousin. And also they owe me

267
00:14:23,480 --> 00:14:27,120
Speaker 1: ten bucks for every head shot. Is this along the

268
00:14:27,200 --> 00:14:31,000
Speaker 1: right lines. You're talking the right language, man. And by

269
00:14:31,040 --> 00:14:33,440
Speaker 1: the way, playing video games has nothing to be embarrassed about.

270
00:14:33,800 --> 00:14:39,800
Speaker 1: A virgens them prefer video gaming to traditional sports. So

271
00:14:40,760 --> 00:14:44,840
Speaker 1: but I'm practically a boomer, that's the problem. I am

272
00:14:44,920 --> 00:14:47,280
Speaker 1: definitely a boomer, and I still play about two hours

273
00:14:47,280 --> 00:14:51,840
Speaker 1: a day. So it's it's it's actually the biggest growing

274
00:14:51,920 --> 00:14:54,560
Speaker 1: sector of entertainment in the world. I mean, the video

275
00:14:54,600 --> 00:14:58,200
Speaker 1: game industry is bigger than the movie and music industries combined.

276
00:14:58,240 --> 00:15:01,200
Speaker 1: So that gives you some sense of comfort that you're

277
00:15:01,200 --> 00:15:05,480
Speaker 1: in good company. What what what is E sports? Grant? Sure,

278
00:15:05,520 --> 00:15:10,200
Speaker 1: E sports is competitive video game play. Now. E sports

279
00:15:10,280 --> 00:15:12,800
Speaker 1: is a subsection of the larger gaming industry, and it

280
00:15:12,960 --> 00:15:19,240
Speaker 1: is organized events where professional, paid teams participate against each

281
00:15:19,240 --> 00:15:21,960
Speaker 1: other for cash. Prizes. You've heard a lot of these names,

282
00:15:22,120 --> 00:15:25,840
Speaker 1: you know, Phase Clan and Cloud nine, Team Liquid, et cetera.

283
00:15:26,440 --> 00:15:29,880
Speaker 1: These teams compete for multimillion dollar prizes all around the

284
00:15:29,880 --> 00:15:35,520
Speaker 1: world all year, and that's the sports business. I have

285
00:15:36,040 --> 00:15:38,560
Speaker 1: a gaming analogy that will probably help bring it home

286
00:15:38,640 --> 00:15:44,920
Speaker 1: for the listeners because we have to separate software platforms.

287
00:15:45,160 --> 00:15:49,720
Speaker 1: At one is and I compared to golf. When people

288
00:15:49,880 --> 00:15:53,600
Speaker 1: watch golf, they bet on the masters, and that's professional

289
00:15:53,720 --> 00:15:56,440
Speaker 1: watching the professionals play and you're betting on them. That's

290
00:15:56,440 --> 00:15:59,640
Speaker 1: our VI g G platform. That's the platform we just

291
00:15:59,760 --> 00:16:01,920
Speaker 1: law in New Jersey, where the first and only, by

292
00:16:01,920 --> 00:16:07,360
Speaker 1: the way, licensed esports gambling site in North America. Our

293
00:16:07,440 --> 00:16:10,920
Speaker 1: other platform is Land Dual, and this looks like it's

294
00:16:10,960 --> 00:16:15,360
Speaker 1: the product you're looking for, Matt. This platform allows you

295
00:16:15,600 --> 00:16:18,840
Speaker 1: to compete against others in planes. So if I take

296
00:16:18,880 --> 00:16:21,440
Speaker 1: this back to golf, people bet on the masters, but

297
00:16:21,560 --> 00:16:24,920
Speaker 1: far more people beat against each other when they're playing

298
00:16:24,960 --> 00:16:27,960
Speaker 1: closest to the whole, best drive, best ball, you know

299
00:16:27,960 --> 00:16:31,960
Speaker 1: who's gonna win the match. That's Land Dual. So we're

300
00:16:32,000 --> 00:16:36,560
Speaker 1: actually having the inaugural event. We're launching this software in

301
00:16:36,640 --> 00:16:42,240
Speaker 1: partnership with the hard Rock this March, also in New Jersey.

302
00:16:42,320 --> 00:16:46,000
Speaker 1: Obviously New Jersey is a card here for us. Uh,

303
00:16:46,160 --> 00:16:51,240
Speaker 1: we're launching with Madden, where three fifty competitors are coming

304
00:16:51,280 --> 00:16:54,800
Speaker 1: to compete against each other on one on one model

305
00:16:54,880 --> 00:16:58,440
Speaker 1: model skill play for purse each individual game. So if

306
00:16:58,480 --> 00:17:01,880
Speaker 1: you're you and I are playing Madden, you win, and

307
00:17:01,960 --> 00:17:04,240
Speaker 1: we both bet five bucks, ten bucks a hunter bucks,

308
00:17:04,320 --> 00:17:07,600
Speaker 1: you win the purse. The house takes aig. Think of

309
00:17:07,640 --> 00:17:13,200
Speaker 1: it as equivalent of poker for video gaming. So why Jersey?

310
00:17:13,280 --> 00:17:15,399
Speaker 1: I mean we we were looking through your resume and

311
00:17:15,440 --> 00:17:20,480
Speaker 1: guessing that you're Canadian. I have lived in the States.

312
00:17:20,560 --> 00:17:22,560
Speaker 1: I I lived in New York, Pelham, New York for

313
00:17:22,600 --> 00:17:26,800
Speaker 1: three years. But yes, I I hell them. I love Pelham.

314
00:17:27,240 --> 00:17:29,480
Speaker 1: I want I wanted to move to Pelham, but there's

315
00:17:29,480 --> 00:17:34,760
Speaker 1: no inventory this um But but it is Jersey because

316
00:17:35,000 --> 00:17:39,000
Speaker 1: Atlantic City or um or is there another reason? Well,

317
00:17:39,080 --> 00:17:41,240
Speaker 1: Jersey is one of the most, if not the most

318
00:17:41,280 --> 00:17:44,680
Speaker 1: progressive states. I mean, if you recall back in with

319
00:17:44,760 --> 00:17:50,480
Speaker 1: the Supreme Court overturned the ruling allowing online sports book wagering,

320
00:17:50,600 --> 00:17:52,320
Speaker 1: which started a bit of a gold rush. You know,

321
00:17:52,400 --> 00:17:55,040
Speaker 1: from then until now, we had two states which were

322
00:17:55,080 --> 00:17:58,680
Speaker 1: Nevada and New Jersey that we're allowing. This is now

323
00:17:59,359 --> 00:18:02,159
Speaker 1: I think two states and counting and uh and that

324
00:18:02,280 --> 00:18:06,760
Speaker 1: was spearheaded by New Jersey. So they're very innovative. The

325
00:18:06,800 --> 00:18:09,760
Speaker 1: Gaming Commission there is very innovative. The governor has gone

326
00:18:09,760 --> 00:18:12,320
Speaker 1: on record stating that they want to be in the

327
00:18:12,400 --> 00:18:15,480
Speaker 1: front of the vanguard of this huge gaming industry and

328
00:18:15,560 --> 00:18:19,920
Speaker 1: the sports which is why you know we made our application.

329
00:18:20,800 --> 00:18:23,399
Speaker 1: There are auditors and our attorneys are also in New Jersey,

330
00:18:23,400 --> 00:18:27,320
Speaker 1: so that that helps. We have office in Hoboken, and

331
00:18:27,359 --> 00:18:29,679
Speaker 1: it's it's close to New York, so it has a

332
00:18:29,720 --> 00:18:31,399
Speaker 1: lot of things going for it and and less but

333
00:18:31,480 --> 00:18:34,240
Speaker 1: certainly not least. You already pointed out Atlantic City, and

334
00:18:34,280 --> 00:18:38,800
Speaker 1: that's specifically why we're launching land Duel. I told you

335
00:18:38,840 --> 00:18:41,120
Speaker 1: that New Jersey. It's where's that, buddy. I'm telling you

336
00:18:41,680 --> 00:18:43,320
Speaker 1: we we we got it all. It's a great state

337
00:18:43,359 --> 00:18:45,679
Speaker 1: of New Jersey. Grant Johnson, thanks so much for joining us.

338
00:18:45,680 --> 00:18:48,600
Speaker 1: Fascinating story here. Grant Johnson, he's the CEO and the

339
00:18:48,600 --> 00:18:50,879
Speaker 1: company is called the Sports Entertainment Group. It's a public

340
00:18:51,000 --> 00:18:54,000
Speaker 1: traded company trades on the Nasdaq g m b L.

341
00:18:54,320 --> 00:18:57,240
Speaker 1: It's an online gaming platform, some pretty cool stuff again,

342
00:18:57,359 --> 00:19:01,320
Speaker 1: doing some good stuff in New Jersey. Thanks for listening

343
00:19:01,359 --> 00:19:04,840
Speaker 1: to the Bloomberg Markets podcast. You can subscribe and listen

344
00:19:04,880 --> 00:19:09,160
Speaker 1: to interviews with Apple Podcasts or whatever podcast platform you prefer.

345
00:19:09,520 --> 00:19:12,800
Speaker 1: I'm Matt Miller. I'm on Twitter at Matt Miller nineteen

346
00:19:12,920 --> 00:19:15,600
Speaker 1: seventy three. Pet On Fall Sweeney, I'm on Twitter at

347
00:19:15,600 --> 00:19:18,479
Speaker 1: pt Sweeney. Before the podcast, you can always catch us

348
00:19:18,520 --> 00:19:19,920
Speaker 1: worldwide at Bloomberg Radio