WEBVTT - Single Best Idea with Tom  Keene: Michael Darda & Frances Donald

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, single best.

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<v Speaker 2>Idea maybe in ompteen months. This was the hardest day

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<v Speaker 2>to pick two moments to speak of. It was absolutely

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<v Speaker 2>an extraordinary show on economics, finance, investment, on international relations.

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<v Speaker 2>Thank you Mick Mulroy of the Lobo Institute with his

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<v Speaker 2>public service to the Marines and to the CIA for

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<v Speaker 2>his perspective on all of our geopolitics and our military

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<v Speaker 2>people at risk every day worldwide. He was just absolutely phenomenal.

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<v Speaker 2>And the list goes on. And I thought Jordan Rochester

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<v Speaker 2>representing Missoo the Great Japanese Bank, was just spellbinding on

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<v Speaker 2>how things have changed. Finally there's a legitimate inflation and

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<v Speaker 2>animal spirit than Japan. That's a stunning comment. Literally going

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<v Speaker 2>back thirty years, Michael Data joined us with Ross Capital Management.

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<v Speaker 2>We talked to Michael Data just simply about the path forward.

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<v Speaker 3>Over any extended period of time, corporations will adjust. I

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<v Speaker 3>think they can be flexible. But the question is what

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<v Speaker 3>does that mean for the business cycle in risk markets?

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<v Speaker 3>Because if the adjustment is that we see a pickup

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<v Speaker 3>in layoffs, which seemed to be happening, you know, you

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<v Speaker 3>could end up with some economic dislocations here in that

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<v Speaker 3>transition that are associated with a fairly significant equity market correction.

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<v Speaker 3>Now to Paul's question, the consumers held in there? Why

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<v Speaker 3>a lot of the consumer spending is driven by high

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<v Speaker 3>income households that have been riding high on this huge

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<v Speaker 3>stock market rally which is now flickering and flagging in

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<v Speaker 3>a labor market that has come in and blown expectations,

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<v Speaker 3>you know, off the wall in terms of being you

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<v Speaker 3>know wrong and you know, sustainably robust payroll growth and

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<v Speaker 3>that could also be under threat. Now, so yes, the

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<v Speaker 3>corporations will adjust, but the question is what does that

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<v Speaker 3>mean for risk markets in the business cycle.

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<v Speaker 2>In the interim, Michael Dirda of Capital Francis Donald was

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<v Speaker 2>with us as well, really back to back with the

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<v Speaker 2>Bank of Montreal and Ian Lingott and then to Francis

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<v Speaker 2>Donald with the Royal Bank of Canada RBC Capital Markets.

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<v Speaker 2>Late in the conversation Francis Donald of Montreal and of

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<v Speaker 2>her Canada on tariffs and the way Canada helps us

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<v Speaker 2>each and every day.

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<v Speaker 4>Canada provides sixty percent of oil imports to the United States,

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<v Speaker 4>ninety percent of electricity imports, ninety nine percent of natural

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<v Speaker 4>gas eighty five percent of potash, ninety percent of canola,

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<v Speaker 4>thirty four percent of your meat, and let's not forget

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<v Speaker 4>critical minerals, which is nineteen percent of US imports. Twenty

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<v Speaker 4>seven percent of your uranium imports come from Canada. Canada

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<v Speaker 4>helps to heat the United States, it helps to feed

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<v Speaker 4>the United States, and this is not twenty eighteen anymore.

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<v Speaker 4>The US is struggling under an electrical grid and has

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<v Speaker 4>substantial energy needs that Canada can help to rectify. So

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<v Speaker 4>I think the focus should be on how much can

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<v Speaker 4>Canada support US exceptionalism going forward and what is the

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<v Speaker 4>upside of actual increased collaboration between the two countries. That's

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<v Speaker 4>the story that I think will resonate because President Trump

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<v Speaker 4>has huge ambition for what the US economy can be common.

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<v Speaker 4>There is a lot of upside for the US as well.

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<v Speaker 4>Canada upside equals US upside. We spent a lot of

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<v Speaker 4>time thinking that Canada benefits from the United States. The

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<v Speaker 4>reverse is also true, and we got to push that narrative,

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<v Speaker 4>not just for Canadians but for Americans as well.

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<v Speaker 2>Bottle it Francis Donald, RBC Capital Markets. We're on YouTube,

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<v Speaker 2>Go out to YouTube podcasts, This is single best idea.

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<v Speaker 4>I knew then that people were in the danger