WEBVTT - Markets, Energy, And Esports (Podcast

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<v Speaker 1>Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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<v Speaker 1>my co host Matt Miller. Every business day, we bring

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<v Speaker 1>you interviews from CEOs, market pros, and Bloomberg experts, along

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<v Speaker 1>with essential market moving news. Find the Bloomberg Markets Podcast

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<v Speaker 1>on Apple Podcasts or wherever you listen to podcasts, and

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<v Speaker 1>at Bloomberg dot com slash podcast. Let's get over to

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<v Speaker 1>back to the markets and get over to Wells Fargo Security.

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<v Speaker 1>The head of equity Strategy joins us Chris Harvard to

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<v Speaker 1>talk about what's going on in these markets, and Chris,

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<v Speaker 1>I guess you know your job has been made a

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<v Speaker 1>lot more difficult the last few days because this geopolitical

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<v Speaker 1>risk has to be harder to forecast than anything that

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<v Speaker 1>Fed's ever done. Yeah. I think that's right. The geopolitical

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<v Speaker 1>is very hard to forecast. We're very headline driven and

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<v Speaker 1>it's just hard to parse out. But but I think

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<v Speaker 1>getting back to the FED longer term, it's really about

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<v Speaker 1>the FED, and we can talk about that as much

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<v Speaker 1>sure as loot as you want, but until we get

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<v Speaker 1>that some sort of resolution on Ukraine Russia, it's going

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<v Speaker 1>to continue to cause volatility. But again, I think the

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<v Speaker 1>bigger picture, which I really want to focus on longer term,

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<v Speaker 1>is the FED and what the FED is going to do.

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<v Speaker 1>All right, let's go there, Chris. If you look at

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<v Speaker 1>the w I r P function on the Bloomer terminal,

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<v Speaker 1>we're uh, it's new and improved. It is new and improved.

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<v Speaker 1>Love it pretty cool? Um? Talking about seven rate increases

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<v Speaker 1>in two that seems kind of wacky to me to

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<v Speaker 1>to use the cf A term. What do you think

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<v Speaker 1>that's your scientific term? I see, um yea. When I

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<v Speaker 1>find what I find a little wacky is that they're

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<v Speaker 1>still buying bonds. They've let seven heights come into the market,

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<v Speaker 1>We're still buying bonds. I think when we look back

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<v Speaker 1>over time, we're gonna we're gonna realize, we're gonna scratch

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<v Speaker 1>our heads. Why did we continue to do this? Why

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<v Speaker 1>did we Why did the Fed taper so long? And

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<v Speaker 1>tapering did cause some of the inflation that we're seeing. Um,

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<v Speaker 1>bigger picture in the Fed open the door. The FED

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<v Speaker 1>really allowed themselves a lot of optionality the last meeting,

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<v Speaker 1>and I think they have to reduce that optionality because

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<v Speaker 1>people are having a hard time planning. They don't know

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<v Speaker 1>if it's it's twenty five or fifty. Uh, they don't

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<v Speaker 1>know if it's going to be twenty five at a clip.

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<v Speaker 1>They really don't know what's going to happen when the

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<v Speaker 1>balance sheet. And I think the Fed has to reduce

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<v Speaker 1>their optionality. They have to give people a little bit

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<v Speaker 1>more clarity on the path that they're they're going to take.

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<v Speaker 1>And for us, we're we're really focused on that March

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<v Speaker 1>meeting because I don't think the die is cast just yet.

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<v Speaker 1>If they get very aggressive the second half that economically

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<v Speaker 1>will be a lot tougher. If they're much more moderate,

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<v Speaker 1>I think we can have a decent year and I

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<v Speaker 1>think the economy will hold up just just five. But

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<v Speaker 1>you do think we're going to see a cut, right?

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<v Speaker 1>You mean just don't know if it's I mean hike.

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<v Speaker 1>You just don't know if it's gonna be twenty five

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<v Speaker 1>basis points or fifty. That's right, that's right. So the

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<v Speaker 1>markets telling it's twenty five. That seems about right. Um.

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<v Speaker 1>The Fed hasn't been real clear about things, but they

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<v Speaker 1>it would be surprising to me that they if they

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<v Speaker 1>go fifty. Um, But again, anything is on the table.

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<v Speaker 1>They really need to provide a little bit more clarity.

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<v Speaker 1>And that's what's happening, is a market is just uncertain

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<v Speaker 1>about what they're doing, and the speed of their turnaround

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<v Speaker 1>is often surprised people. So until we get that March meeting,

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<v Speaker 1>it's just going to be a lot of all, a

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<v Speaker 1>lot of uncertainty and a lot of guessing by market participants. Chris,

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<v Speaker 1>we're pretty much through this earning season, Um, what are

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<v Speaker 1>some of your takeaways here? Did it leave any maybe

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<v Speaker 1>valuation risk you might have felt in this market? Yeah,

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<v Speaker 1>forecasts have been slashed for earning growth exactly. So one

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<v Speaker 1>of the things that I think is happening under the scene,

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<v Speaker 1>we talk a lot about the supply chain. Supply chain

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<v Speaker 1>is kind of get gotten swept away from the headlines

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<v Speaker 1>with Ukraine and Russia. But one of the positives that

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<v Speaker 1>I've seen is the average company is having a difficult

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<v Speaker 1>time with the supply chain. But if you look at

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<v Speaker 1>some of the larger companies, UM, Apple, p and even

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<v Speaker 1>Walmart yesterday indicated this. They seem to indicate that they

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<v Speaker 1>could use their heft and their might to wrestle the

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<v Speaker 1>supply chain, and they did indicate that it seems for

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<v Speaker 1>them the supply chain are the worst of the supply

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<v Speaker 1>chain is over which I think is a good harbinger

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<v Speaker 1>for other companies. The other thing I would say about

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<v Speaker 1>earning season is we've been talking about higher prices and

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<v Speaker 1>higher prices, and I've never seen this kind of pricing

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<v Speaker 1>in the summertime. I was telling class, we've never seen

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<v Speaker 1>this kind of pricing environment might twenty career. Now. What

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<v Speaker 1>we're seeing on pricing is pricing is still going higher,

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<v Speaker 1>but at the decelerating rate. And one of the things

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<v Speaker 1>we've been talking about, does the consumers start to bok

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<v Speaker 1>at some of these higher prices? Is the consumer is

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<v Speaker 1>demand a little bit more elastic now than it was

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<v Speaker 1>last year, since pent up demand has been satisfied, and

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<v Speaker 1>it looks like we're beginning to see that, and I

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<v Speaker 1>think that's that's potentially a plus when it comes to inflation. Hey, Chris,

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<v Speaker 1>you guys are walls Fargo You over huts and yards, right,

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<v Speaker 1>We're that's that's we have a number of offices, but

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<v Speaker 1>one of them is hutsing yards. That's where trading Florida. Yeah,

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<v Speaker 1>I mean, it's what's it like over there? I mean,

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<v Speaker 1>are people, as I know, they opened this hut they

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<v Speaker 1>open huts and yards. It's this amazing office complex and

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<v Speaker 1>all the far west side of Manhattan, but High Line

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<v Speaker 1>over there exactly. But it seemed to open just before

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<v Speaker 1>the pandemic dill are put in. Yep, that's very cool.

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<v Speaker 1>What's it like over there? Because are there people there

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<v Speaker 1>or is it a ghost town? Um? There are people there.

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<v Speaker 1>And what I would say, so I live in New

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<v Speaker 1>York or I live in the city, And what I

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<v Speaker 1>would say is weather. On Saturday, the weather was nice

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<v Speaker 1>and people were out and about and and it looked

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<v Speaker 1>like a normal day and spring day. Whether it gets colder,

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<v Speaker 1>people come back inside. I think the demand is there.

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<v Speaker 1>I think people want to get out. I think they're

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<v Speaker 1>willing to get out. And I think in the springtime

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<v Speaker 1>things are going to look a lot more normal. I

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<v Speaker 1>think people are a lot more comfortable. I also have

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<v Speaker 1>a child that goes to school in the city, and

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<v Speaker 1>I talked a lot of different parents and they're they're

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<v Speaker 1>comfortable and they're ready to go. Yeah, I think I

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<v Speaker 1>agree with you. I think the city is going to

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<v Speaker 1>explode in the next month or so. Blossom blossoms are

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<v Speaker 1>much better. Just doesn't explode. Yeah, it's just gonna be

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<v Speaker 1>I think there's a lot of pent up there. Chris Harvey,

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<v Speaker 1>head of equity strategist at Wells Fargo Securities. Let's tuck

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<v Speaker 1>global energy. It's not too much of a stretch. They're

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<v Speaker 1>about to go from autos two global energy. But we

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<v Speaker 1>bring an Aerngy guill Day kpmg u S Energy sector leader, Angy.

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<v Speaker 1>I'm looking at oil here. You know, we're in and

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<v Speaker 1>around ninety dollars a barrel. It feels like it's pretty

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<v Speaker 1>comfortable up here. How do you think about global oil

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<v Speaker 1>going forward, given maybe some of these political tensions we're

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<v Speaker 1>seeing right now. Well, thanks Paul and Matt for having me.

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<v Speaker 1>You know, geo political tensions and oil prices go hand

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<v Speaker 1>in hand. Um, we've seen that for years. I think

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<v Speaker 1>the real question and the challenge that we're seeing now

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<v Speaker 1>is the under supply in the market. You know, inventories

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<v Speaker 1>are the lowest level since two thousand three, and so

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<v Speaker 1>that's a real challenge for us. And there's several reasons

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<v Speaker 1>for that, but that's that's the thing we've got to overcome. Yeah,

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<v Speaker 1>and what's interesting to me, we've been talking about this

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<v Speaker 1>for a few days now and people have been coming

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<v Speaker 1>on saying, you know what, there's not the spare capacity

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<v Speaker 1>out there that you think there is. UM. On the

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<v Speaker 1>other hand, we saw oil prices come down pretty drastically

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<v Speaker 1>yesterday and this morning. Now they're bouncing back to some extent.

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<v Speaker 1>But is the idea that Iran is getting further with

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<v Speaker 1>nuclear talks and maybe the market thought and that capacity

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<v Speaker 1>could come into the market. Well, that's that's an interesting

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<v Speaker 1>question because opeq Uh plus their production quotas have not

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<v Speaker 1>been with the target output levels that they've they've committed to,

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<v Speaker 1>and so if you ask yourself, why is that. I

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<v Speaker 1>think OPEC is looking by nature, it's a cautious group,

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<v Speaker 1>so they're looking long term out in the next seven

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<v Speaker 1>eight quarters before they they really unload their production. So

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<v Speaker 1>I think i RAN definitely definitely played a role in

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<v Speaker 1>that UM. You know, if a deal is reached, that

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<v Speaker 1>could be anywhere from five hundred thousand, seven hundred thousand

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<v Speaker 1>barols per day coming back on the market, maybe some

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<v Speaker 1>even say as much as a as a million barrels

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<v Speaker 1>put per day over the course of the year. So

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<v Speaker 1>that's definitely something I think OPEK is is watching. Andy,

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<v Speaker 1>are you surprised that we haven't seen more production come

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<v Speaker 1>on from your good friends down in Texas and Oklahoma,

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<v Speaker 1>the oil patch, the shale folks. Well, not really, because

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<v Speaker 1>the investor sentiment has changed. You know, oil and gas

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<v Speaker 1>companies have been directed by the capital markets and the

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<v Speaker 1>investment community not to grow production. They have rewarded them

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<v Speaker 1>on returning cash to shareholders, and so that's what they've

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<v Speaker 1>focused on. They've really focused on getting their costs down,

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<v Speaker 1>you know, operating with discipline and returning cash to shareholders.

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<v Speaker 1>So it's not unexpected to me that they aren't, you know,

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<v Speaker 1>returning to uh, very active drink. We have senior counts increase,

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<v Speaker 1>but they're being very directed and by their shareholders that

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<v Speaker 1>they needed to return cash discipline. Surprised me, that's for sure.

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<v Speaker 1>Are Gilday, thanks so much for joining US national sector

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<v Speaker 1>leader Energy, Natural Resources and Chemicals at KPMG. A proud

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<v Speaker 1>graduate of Texas A and M. Right now springing, David

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<v Speaker 1>Dietz's a Managing Principal and senior portfolio manager strategists at

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<v Speaker 1>p PAC Gladstone Bank. David, we got geopolitical risk, we've

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<v Speaker 1>got rising interest rates, we've got slowing economy. We even

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<v Speaker 1>have some earnings acceleration kind of slowing down in terms

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<v Speaker 1>of the earnings growth there. How are you thinking about

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<v Speaker 1>this market, David, Well, certainly, it's a lot of things

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<v Speaker 1>to worry about. It's a very ste ball of worry

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<v Speaker 1>to add to those items. Of course, you've got a

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<v Speaker 1>federal Reserve which is by by all accounts, is poised

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<v Speaker 1>to raise interest rates come March. We don't know where

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<v Speaker 1>there's twenty five or fifty. And of course we've also

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<v Speaker 1>got this UH options exploration Day which is enhancing the volatility.

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<v Speaker 1>So um, you know, it's we've had three great years.

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<v Speaker 1>This year has started uh kind of poorly here, SMP

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<v Speaker 1>fire down eight percent, the Barclays Aggregate, the high quality

0:10:28.960 --> 0:10:32.079
<v Speaker 1>bonded next down four percent. So investors really wondering where

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<v Speaker 1>to go with their money here. But you know, the

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<v Speaker 1>flip side is a lot of the worries that we're

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<v Speaker 1>gonna be talking about today and are pretty well, I think,

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<v Speaker 1>Chris Ston, you know, we'll have to see. Certainly, let's

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<v Speaker 1>look at the Ukraine Russian situation. Historically, these geopolitical events

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<v Speaker 1>are short term problems for the markets. Um, you know,

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<v Speaker 1>I don't think it's gonna affect anyone's plans to go

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<v Speaker 1>out for dinner this weekend. I don't think anyone's good

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<v Speaker 1>defer a car purchase because of what's going on now.

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<v Speaker 1>The bad news is, I think it could, depending on

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<v Speaker 1>how things work out, raise energy prices. But guess what,

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<v Speaker 1>Unlike the nineteen seventies, were energy independent here, so we

0:11:08.679 --> 0:11:11.640
<v Speaker 1>have a lot more control. So I wouldn't let be that,

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<v Speaker 1>let that be the reason why you dumped your portfolio. Obviously,

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<v Speaker 1>what the FED does with interest rates and the risk

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<v Speaker 1>of a policy error is probably issue number one for investors. Yeah, well,

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<v Speaker 1>in the bat The other bad news is, even if

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<v Speaker 1>you want to purchase the car, where you're gonna find it,

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<v Speaker 1>nobody's got anything on lots right, And if you do,

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<v Speaker 1>see like a used vehicle, late model along the lines

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<v Speaker 1>of what you're looking for, is gonna cost ten thousand

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<v Speaker 1>dollars more than the new M S r P. So

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<v Speaker 1>this kind of scarcity, this kind of inflation, it's starting

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<v Speaker 1>to eat into corporate earnings. Does that worry you? Everything

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<v Speaker 1>worries me, But you know, so the inflation problem is,

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<v Speaker 1>you know, really our most important problem, because ultimately that's

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<v Speaker 1>the only reason the FED is gonna hike rates. They

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<v Speaker 1>don't just have higher interest rates that they don't have

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<v Speaker 1>a problem to solve. Um. The reasons for optimism there

0:12:05.880 --> 0:12:09.120
<v Speaker 1>is where our car availability going to be a year

0:12:09.120 --> 0:12:11.160
<v Speaker 1>for now, and I would submit that a lot of

0:12:11.200 --> 0:12:16.040
<v Speaker 1>the inflation is due to pandemic supply disruptions. So you've

0:12:16.080 --> 0:12:18.000
<v Speaker 1>got like seventy five ships off the port of Los

0:12:18.040 --> 0:12:19.720
<v Speaker 1>Angeles where we're gonna be a year from now, I

0:12:19.840 --> 0:12:22.520
<v Speaker 1>would submit and hope there's gonna be less depending on where.

0:12:22.520 --> 0:12:25.360
<v Speaker 1>There's another area. You've got about five million people who

0:12:25.400 --> 0:12:27.440
<v Speaker 1>don't want to return to work. A lot of those

0:12:27.440 --> 0:12:30.080
<v Speaker 1>people are concerned about illness and so forth. So I

0:12:30.120 --> 0:12:33.559
<v Speaker 1>think there's reasons to believe that inflation could relax a

0:12:33.600 --> 0:12:37.600
<v Speaker 1>little bit. Otherwise, there's no question about there's other types

0:12:37.640 --> 0:12:39.880
<v Speaker 1>of inflation. If it gets into the you know, wages

0:12:39.920 --> 0:12:42.880
<v Speaker 1>and so forth, that it may be more difficult. But

0:12:42.960 --> 0:12:45.880
<v Speaker 1>to the extent that inflation abates a little bit, defed

0:12:45.920 --> 0:12:48.680
<v Speaker 1>maybe less aggressive, and that could allow for stocks to

0:12:48.720 --> 0:12:51.199
<v Speaker 1>have a rebound here. All right, David, thanks so much.

0:12:51.320 --> 0:12:54.440
<v Speaker 1>We always appreciate getting your perspective on these markets. Here

0:12:54.480 --> 0:12:57.480
<v Speaker 1>the benefit of your experience, David Deed's managing principle and

0:12:57.480 --> 0:13:03.520
<v Speaker 1>senior portfolio strategist at Pepack Gladstone Bank. Where is that paste?

0:13:03.520 --> 0:13:05.839
<v Speaker 1>It's in New Jersey, baby, kind of western New Jersey

0:13:05.840 --> 0:13:09.360
<v Speaker 1>and horse country out west of you. Yes, and but

0:13:09.400 --> 0:13:11.560
<v Speaker 1>there's an office in Summit, because there's everything's in Summit.

0:13:11.600 --> 0:13:14.920
<v Speaker 1>It's like the blooming financial metropolis of north central New Jersey.

0:13:15.000 --> 0:13:17.079
<v Speaker 1>Day I'll get the invite. Yes, someday you get to invite,

0:13:17.080 --> 0:13:19.040
<v Speaker 1>we'll get you out there. Canuebra get chat on the

0:13:19.080 --> 0:13:21.200
<v Speaker 1>golf course. And Mr Dietz is remember there as well.

0:13:21.679 --> 0:13:24.000
<v Speaker 1>Uh so looking at these markets here again, kind of

0:13:24.120 --> 0:13:26.280
<v Speaker 1>rolling over a little bit, not gonna oversell at the

0:13:26.320 --> 0:13:30.240
<v Speaker 1>SMP off about four tenths of one per cent geopolitical

0:13:30.320 --> 0:13:37.360
<v Speaker 1>issues at the four. One of the things that I

0:13:37.400 --> 0:13:41.600
<v Speaker 1>do in Jamaica, believe it or not, and uh it's embarrassing,

0:13:41.679 --> 0:13:44.840
<v Speaker 1>is I play video games one there. Sometimes I just

0:13:44.880 --> 0:13:47.680
<v Speaker 1>bring my consoles with me and play everywhere. And I

0:13:47.679 --> 0:13:49.720
<v Speaker 1>want to bring Grant Johnson right now is the CEO

0:13:50.120 --> 0:13:53.680
<v Speaker 1>of E Sports Entertainment Group. The ticker is pretty sweet

0:13:53.840 --> 0:13:58.000
<v Speaker 1>g nb L Gamble it's an online gambling platform. I

0:13:58.000 --> 0:14:01.320
<v Speaker 1>don't get exactly, um what you're doing, but I was

0:14:01.400 --> 0:14:04.600
<v Speaker 1>thinking about it reading through it, Grant, I love to

0:14:04.679 --> 0:14:08.719
<v Speaker 1>play you know, Halo or Call of Duty or a

0:14:08.840 --> 0:14:13.560
<v Speaker 1>Fortnite or uh Player Unknown battle Ground with a group

0:14:13.600 --> 0:14:15.480
<v Speaker 1>of friends, and the only thing will make it better

0:14:15.520 --> 0:14:17.720
<v Speaker 1>is if I could bet with them at the same time.

0:14:18.640 --> 0:14:20.680
<v Speaker 1>It would be sweet if I could take out like

0:14:20.760 --> 0:14:23.400
<v Speaker 1>my brother or my cousin. And also they owe me

0:14:23.480 --> 0:14:27.120
<v Speaker 1>ten bucks for every head shot. Is this along the

0:14:27.200 --> 0:14:31.000
<v Speaker 1>right lines. You're talking the right language, man. And by

0:14:31.040 --> 0:14:33.440
<v Speaker 1>the way, playing video games has nothing to be embarrassed about.

0:14:33.800 --> 0:14:39.800
<v Speaker 1>A virgens them prefer video gaming to traditional sports. So

0:14:40.760 --> 0:14:44.840
<v Speaker 1>but I'm practically a boomer, that's the problem. I am

0:14:44.920 --> 0:14:47.280
<v Speaker 1>definitely a boomer, and I still play about two hours

0:14:47.280 --> 0:14:51.840
<v Speaker 1>a day. So it's it's it's actually the biggest growing

0:14:51.920 --> 0:14:54.560
<v Speaker 1>sector of entertainment in the world. I mean, the video

0:14:54.600 --> 0:14:58.200
<v Speaker 1>game industry is bigger than the movie and music industries combined.

0:14:58.240 --> 0:15:01.200
<v Speaker 1>So that gives you some sense of comfort that you're

0:15:01.200 --> 0:15:05.480
<v Speaker 1>in good company. What what what is E sports? Grant? Sure,

0:15:05.520 --> 0:15:10.200
<v Speaker 1>E sports is competitive video game play. Now. E sports

0:15:10.280 --> 0:15:12.800
<v Speaker 1>is a subsection of the larger gaming industry, and it

0:15:12.960 --> 0:15:19.240
<v Speaker 1>is organized events where professional, paid teams participate against each

0:15:19.240 --> 0:15:21.960
<v Speaker 1>other for cash. Prizes. You've heard a lot of these names,

0:15:22.120 --> 0:15:25.840
<v Speaker 1>you know, Phase Clan and Cloud nine, Team Liquid, et cetera.

0:15:26.440 --> 0:15:29.880
<v Speaker 1>These teams compete for multimillion dollar prizes all around the

0:15:29.880 --> 0:15:35.520
<v Speaker 1>world all year, and that's the sports business. I have

0:15:36.040 --> 0:15:38.560
<v Speaker 1>a gaming analogy that will probably help bring it home

0:15:38.640 --> 0:15:44.920
<v Speaker 1>for the listeners because we have to separate software platforms.

0:15:45.160 --> 0:15:49.720
<v Speaker 1>At one is and I compared to golf. When people

0:15:49.880 --> 0:15:53.600
<v Speaker 1>watch golf, they bet on the masters, and that's professional

0:15:53.720 --> 0:15:56.440
<v Speaker 1>watching the professionals play and you're betting on them. That's

0:15:56.440 --> 0:15:59.640
<v Speaker 1>our VI g G platform. That's the platform we just

0:15:59.760 --> 0:16:01.920
<v Speaker 1>law in New Jersey, where the first and only, by

0:16:01.920 --> 0:16:07.360
<v Speaker 1>the way, licensed esports gambling site in North America. Our

0:16:07.440 --> 0:16:10.920
<v Speaker 1>other platform is Land Dual, and this looks like it's

0:16:10.960 --> 0:16:15.360
<v Speaker 1>the product you're looking for, Matt. This platform allows you

0:16:15.600 --> 0:16:18.840
<v Speaker 1>to compete against others in planes. So if I take

0:16:18.880 --> 0:16:21.440
<v Speaker 1>this back to golf, people bet on the masters, but

0:16:21.560 --> 0:16:24.920
<v Speaker 1>far more people beat against each other when they're playing

0:16:24.960 --> 0:16:27.960
<v Speaker 1>closest to the whole, best drive, best ball, you know

0:16:27.960 --> 0:16:31.960
<v Speaker 1>who's gonna win the match. That's Land Dual. So we're

0:16:32.000 --> 0:16:36.560
<v Speaker 1>actually having the inaugural event. We're launching this software in

0:16:36.640 --> 0:16:42.240
<v Speaker 1>partnership with the hard Rock this March, also in New Jersey.

0:16:42.320 --> 0:16:46.000
<v Speaker 1>Obviously New Jersey is a card here for us. Uh,

0:16:46.160 --> 0:16:51.240
<v Speaker 1>we're launching with Madden, where three fifty competitors are coming

0:16:51.280 --> 0:16:54.800
<v Speaker 1>to compete against each other on one on one model

0:16:54.880 --> 0:16:58.440
<v Speaker 1>model skill play for purse each individual game. So if

0:16:58.480 --> 0:17:01.880
<v Speaker 1>you're you and I are playing Madden, you win, and

0:17:01.960 --> 0:17:04.240
<v Speaker 1>we both bet five bucks, ten bucks a hunter bucks,

0:17:04.320 --> 0:17:07.600
<v Speaker 1>you win the purse. The house takes aig. Think of

0:17:07.640 --> 0:17:13.200
<v Speaker 1>it as equivalent of poker for video gaming. So why Jersey?

0:17:13.280 --> 0:17:15.399
<v Speaker 1>I mean we we were looking through your resume and

0:17:15.440 --> 0:17:20.480
<v Speaker 1>guessing that you're Canadian. I have lived in the States.

0:17:20.560 --> 0:17:22.560
<v Speaker 1>I I lived in New York, Pelham, New York for

0:17:22.600 --> 0:17:26.800
<v Speaker 1>three years. But yes, I I hell them. I love Pelham.

0:17:27.240 --> 0:17:29.480
<v Speaker 1>I want I wanted to move to Pelham, but there's

0:17:29.480 --> 0:17:34.760
<v Speaker 1>no inventory this um But but it is Jersey because

0:17:35.000 --> 0:17:39.000
<v Speaker 1>Atlantic City or um or is there another reason? Well,

0:17:39.080 --> 0:17:41.240
<v Speaker 1>Jersey is one of the most, if not the most

0:17:41.280 --> 0:17:44.680
<v Speaker 1>progressive states. I mean, if you recall back in with

0:17:44.760 --> 0:17:50.480
<v Speaker 1>the Supreme Court overturned the ruling allowing online sports book wagering,

0:17:50.600 --> 0:17:52.320
<v Speaker 1>which started a bit of a gold rush. You know,

0:17:52.400 --> 0:17:55.040
<v Speaker 1>from then until now, we had two states which were

0:17:55.080 --> 0:17:58.680
<v Speaker 1>Nevada and New Jersey that we're allowing. This is now

0:17:59.359 --> 0:18:02.159
<v Speaker 1>I think two states and counting and uh and that

0:18:02.280 --> 0:18:06.760
<v Speaker 1>was spearheaded by New Jersey. So they're very innovative. The

0:18:06.800 --> 0:18:09.760
<v Speaker 1>Gaming Commission there is very innovative. The governor has gone

0:18:09.760 --> 0:18:12.320
<v Speaker 1>on record stating that they want to be in the

0:18:12.400 --> 0:18:15.480
<v Speaker 1>front of the vanguard of this huge gaming industry and

0:18:15.560 --> 0:18:19.920
<v Speaker 1>the sports which is why you know we made our application.

0:18:20.800 --> 0:18:23.399
<v Speaker 1>There are auditors and our attorneys are also in New Jersey,

0:18:23.400 --> 0:18:27.320
<v Speaker 1>so that that helps. We have office in Hoboken, and

0:18:27.359 --> 0:18:29.679
<v Speaker 1>it's it's close to New York, so it has a

0:18:29.720 --> 0:18:31.399
<v Speaker 1>lot of things going for it and and less but

0:18:31.480 --> 0:18:34.240
<v Speaker 1>certainly not least. You already pointed out Atlantic City, and

0:18:34.280 --> 0:18:38.800
<v Speaker 1>that's specifically why we're launching land Duel. I told you

0:18:38.840 --> 0:18:41.120
<v Speaker 1>that New Jersey. It's where's that, buddy. I'm telling you

0:18:41.680 --> 0:18:43.320
<v Speaker 1>we we we got it all. It's a great state

0:18:43.359 --> 0:18:45.679
<v Speaker 1>of New Jersey. Grant Johnson, thanks so much for joining us.

0:18:45.680 --> 0:18:48.600
<v Speaker 1>Fascinating story here. Grant Johnson, he's the CEO and the

0:18:48.600 --> 0:18:50.879
<v Speaker 1>company is called the Sports Entertainment Group. It's a public

0:18:51.000 --> 0:18:54.000
<v Speaker 1>traded company trades on the Nasdaq g m b L.

0:18:54.320 --> 0:18:57.240
<v Speaker 1>It's an online gaming platform, some pretty cool stuff again,

0:18:57.359 --> 0:19:01.320
<v Speaker 1>doing some good stuff in New Jersey. Thanks for listening

0:19:01.359 --> 0:19:04.840
<v Speaker 1>to the Bloomberg Markets podcast. You can subscribe and listen

0:19:04.880 --> 0:19:09.160
<v Speaker 1>to interviews with Apple Podcasts or whatever podcast platform you prefer.

0:19:09.520 --> 0:19:12.800
<v Speaker 1>I'm Matt Miller. I'm on Twitter at Matt Miller nineteen

0:19:12.920 --> 0:19:15.600
<v Speaker 1>seventy three. Pet On Fall Sweeney, I'm on Twitter at

0:19:15.600 --> 0:19:18.479
<v Speaker 1>pt Sweeney. Before the podcast, you can always catch us

0:19:18.520 --> 0:19:19.920
<v Speaker 1>worldwide at Bloomberg Radio