1 00:00:05,800 --> 00:00:08,720 Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm pim Fox. 2 00:00:08,760 --> 00:00:11,520 Speaker 1: Along with my co host Lisa Bramowitz. Each day we 3 00:00:11,640 --> 00:00:15,120 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:15,200 --> 00:00:17,840 Speaker 1: you and your money, whether you're at the grocery store 5 00:00:17,960 --> 00:00:20,720 Speaker 1: or the trading floor. Find the Bloomberg p m L 6 00:00:20,840 --> 00:00:32,680 Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot Com. Pimp Fox. 7 00:00:32,680 --> 00:00:35,240 Speaker 1: There was a story that caught my eye yesterday about 8 00:00:36,280 --> 00:00:40,600 Speaker 1: expectations for technology and robots to come in and throughout 9 00:00:40,600 --> 00:00:42,920 Speaker 1: all the humans. Speak from Pandit, who ran City Group 10 00:00:43,240 --> 00:00:47,919 Speaker 1: during the financial crisis, said that technological developments could result 11 00:00:48,080 --> 00:00:52,159 Speaker 1: in a thirty percent decline of banking jobs in the 12 00:00:52,240 --> 00:00:54,920 Speaker 1: next five years. That is soon, and that is a lot. 13 00:00:55,000 --> 00:00:57,360 Speaker 1: That is thousands and thousands of people. So here to 14 00:00:57,400 --> 00:01:00,600 Speaker 1: give us some context, perspective and perhaps uh an alternative 15 00:01:00,680 --> 00:01:03,960 Speaker 1: view is Kevin McPartland, who is a principal market structure 16 00:01:03,960 --> 00:01:09,600 Speaker 1: and technology analysts with Greenwich Associates, which is based in Connecticut. Um, Kevin, 17 00:01:09,760 --> 00:01:11,720 Speaker 1: so what's your take on this? I would love to 18 00:01:11,760 --> 00:01:15,560 Speaker 1: get your sort of in the ground observation. Does this 19 00:01:15,600 --> 00:01:18,800 Speaker 1: seem realistic? Sure? Yeah, I'm gonna I think I'm gonna 20 00:01:18,800 --> 00:01:21,080 Speaker 1: side with Jamie Diamond on this one. This isn't about 21 00:01:21,080 --> 00:01:23,560 Speaker 1: a loss of jobs, but really a change in jobs. 22 00:01:23,560 --> 00:01:25,880 Speaker 1: And I think, you know, we saw this, I think 23 00:01:25,880 --> 00:01:30,000 Speaker 1: in the first dot com bubble back in thousand, when 24 00:01:30,360 --> 00:01:33,120 Speaker 1: you electronic trading was really starting to take over and 25 00:01:33,160 --> 00:01:37,319 Speaker 1: the trading desk makeup was starting to change. It wasn't 26 00:01:37,360 --> 00:01:39,360 Speaker 1: that you were losing jobs. It was that you were 27 00:01:39,400 --> 00:01:43,200 Speaker 1: taking what maybe before we're business school traders and replacing 28 00:01:43,240 --> 00:01:46,080 Speaker 1: them with you know, computer science PhD s. Now. Obviously, 29 00:01:46,360 --> 00:01:49,880 Speaker 1: technology and the markets have evolved quite a bit since then, UM, 30 00:01:49,920 --> 00:01:51,640 Speaker 1: but I think we're in I think we're going through 31 00:01:51,640 --> 00:01:55,240 Speaker 1: a similar transition where it's not just also in this 32 00:01:55,280 --> 00:01:58,280 Speaker 1: time around, it's not just about the skill set of 33 00:01:58,320 --> 00:02:01,200 Speaker 1: the people in those jobs, but where those jobs are. 34 00:02:01,320 --> 00:02:03,560 Speaker 1: Some of those jobs maybe that we're at banks, the 35 00:02:03,600 --> 00:02:07,800 Speaker 1: banks that are looking to increasingly outsource UM, you know, 36 00:02:07,960 --> 00:02:12,440 Speaker 1: pieces of their technology infrastructure, UM too, you know, sometimes 37 00:02:12,480 --> 00:02:15,280 Speaker 1: large firms that often UM startups as well. That we're 38 00:02:15,280 --> 00:02:17,720 Speaker 1: just going to see some jobs shift around, right, more 39 00:02:17,760 --> 00:02:20,160 Speaker 1: so than seeing these jobs just you know, disappear into 40 00:02:20,160 --> 00:02:22,799 Speaker 1: thin air and have the robots take them. Kevin, let's 41 00:02:22,840 --> 00:02:25,440 Speaker 1: let's focus if we can, on retail banking for for 42 00:02:25,560 --> 00:02:27,920 Speaker 1: just a minute. I mean, is that the area that 43 00:02:27,919 --> 00:02:31,440 Speaker 1: you're going to see the biggest job losses? I mean, 44 00:02:31,520 --> 00:02:33,920 Speaker 1: I really think it's across the board. There's no question 45 00:02:34,000 --> 00:02:38,040 Speaker 1: the industry is being disrupted. Um, you know, everything from 46 00:02:38,080 --> 00:02:39,720 Speaker 1: you know, when you call for an issue on your 47 00:02:39,760 --> 00:02:42,880 Speaker 1: credit card and you're talking to an automated voice. Um, 48 00:02:42,880 --> 00:02:45,800 Speaker 1: but right down to the institutional trading desk, right where 49 00:02:45,800 --> 00:02:48,359 Speaker 1: there's you know, less traders covering more clients, and they're 50 00:02:48,400 --> 00:02:50,679 Speaker 1: able to do that because they have you know, more 51 00:02:50,720 --> 00:02:53,520 Speaker 1: sophisticated technology in front of them that allows them to 52 00:02:53,560 --> 00:02:56,480 Speaker 1: service those customers. And those customers also have more self 53 00:02:56,480 --> 00:02:59,200 Speaker 1: service technology than they did. So I really do think 54 00:02:59,240 --> 00:03:01,880 Speaker 1: this spans the gamut from you know, retail all the 55 00:03:01,919 --> 00:03:04,440 Speaker 1: way through to the institutional markets. So when you talk 56 00:03:04,480 --> 00:03:07,720 Speaker 1: about the disruption that's already happening, what do you see 57 00:03:07,800 --> 00:03:11,400 Speaker 1: as the biggest technological development that will result in a 58 00:03:11,440 --> 00:03:14,800 Speaker 1: mass shift in banking jobs over the next five years? 59 00:03:15,600 --> 00:03:18,320 Speaker 1: I I so, I think it's a back end phenomenon 60 00:03:18,360 --> 00:03:20,399 Speaker 1: that we don't really see, right, It's not the There's 61 00:03:20,400 --> 00:03:22,960 Speaker 1: a lot of cool stuff that's going on that's on 62 00:03:23,000 --> 00:03:25,720 Speaker 1: the screens, that's on your phone. But our ability to 63 00:03:25,880 --> 00:03:31,440 Speaker 1: process data and analyze data, just the compute power that's available. Um. 64 00:03:31,480 --> 00:03:33,480 Speaker 1: And there's a whole host of technologies that have made 65 00:03:33,520 --> 00:03:36,080 Speaker 1: that possible. That's what we didn't have five or ten 66 00:03:36,160 --> 00:03:39,160 Speaker 1: years ago. It's so so much compute power. Right. The 67 00:03:39,160 --> 00:03:41,680 Speaker 1: fact that you know, with Apple's announced me yesterday that 68 00:03:41,760 --> 00:03:45,240 Speaker 1: they can do um, that amazing face scanning and within 69 00:03:45,400 --> 00:03:48,560 Speaker 1: a chip that's in your phone. UM. To think about 70 00:03:48,560 --> 00:03:51,800 Speaker 1: that on on an institutional scale, with an Amazon or 71 00:03:51,800 --> 00:03:55,120 Speaker 1: a Microsoft or Google data center. UM, there's just so 72 00:03:55,240 --> 00:03:57,720 Speaker 1: much that computers can do with that power. UM that 73 00:03:57,800 --> 00:04:00,600 Speaker 1: just wasn't available or affordable five or ten years ago. 74 00:04:00,720 --> 00:04:03,080 Speaker 1: So let's just talk about you're saying the shift in jobs. 75 00:04:03,080 --> 00:04:04,960 Speaker 1: But when you talk about that back end stuff, I 76 00:04:05,000 --> 00:04:07,120 Speaker 1: think about Bank of New York, Melon, I think of 77 00:04:07,200 --> 00:04:11,360 Speaker 1: some of these you know, classic processing focused firms that 78 00:04:11,440 --> 00:04:13,720 Speaker 1: are big, have a lot of people. Are they going 79 00:04:13,760 --> 00:04:18,400 Speaker 1: to go bankrupt? No? No, I think they they'll you know, 80 00:04:18,400 --> 00:04:20,880 Speaker 1: their business model and they're the economics of the business 81 00:04:20,880 --> 00:04:24,880 Speaker 1: will have to change as they you know, continue to uh. 82 00:04:24,920 --> 00:04:27,400 Speaker 1: If we if we call it outsource more and more 83 00:04:27,440 --> 00:04:30,440 Speaker 1: functions to computers. UM, they'll be able to then take 84 00:04:30,480 --> 00:04:32,360 Speaker 1: the people that they do have and push them further 85 00:04:32,440 --> 00:04:35,240 Speaker 1: upstreaming to get their you know, their customers, facing their 86 00:04:35,320 --> 00:04:38,320 Speaker 1: their their new business, their innovation. They'll be able to 87 00:04:38,360 --> 00:04:41,120 Speaker 1: have people more focused on those UM I guess you 88 00:04:41,120 --> 00:04:43,599 Speaker 1: would call them like neck up tasks, where the computers 89 00:04:43,600 --> 00:04:46,360 Speaker 1: can automate more, you know, more of what can be automated. 90 00:04:46,400 --> 00:04:49,279 Speaker 1: Which I think that process is going on for arguably 91 00:04:49,360 --> 00:04:52,800 Speaker 1: for decades. We're just continuing to move down that spectrum more, 92 00:04:52,880 --> 00:04:55,560 Speaker 1: more and more complicated things can be automated. Kevin, I 93 00:04:55,600 --> 00:04:58,320 Speaker 1: got one question for you, and it's only a word Equifax. 94 00:05:01,120 --> 00:05:03,320 Speaker 1: I mean, there's you know, there's always going to be uh, 95 00:05:03,400 --> 00:05:06,360 Speaker 1: you know, where where there's technology, the technology was still 96 00:05:06,400 --> 00:05:09,520 Speaker 1: developed by humans. There always can be issues and there's 97 00:05:09,560 --> 00:05:11,360 Speaker 1: always going to be some bad apples in the world. 98 00:05:11,360 --> 00:05:14,880 Speaker 1: But you know, the industry is resilient and continues to uh, 99 00:05:15,240 --> 00:05:16,800 Speaker 1: you know, continue, So you don't think it's gonna be 100 00:05:16,800 --> 00:05:19,560 Speaker 1: a problem. You don't think it's gonna you know, you 101 00:05:19,600 --> 00:05:21,240 Speaker 1: don't think some smart banker is going to say, you 102 00:05:21,240 --> 00:05:23,280 Speaker 1: know what, maybe we've been a little overboard with all 103 00:05:23,320 --> 00:05:25,440 Speaker 1: this technology and maybe we just ought to have people 104 00:05:25,720 --> 00:05:28,520 Speaker 1: dealing with each other. You know what, it's a it's 105 00:05:28,520 --> 00:05:30,760 Speaker 1: a it's a good point. So there's always going to 106 00:05:30,800 --> 00:05:34,800 Speaker 1: be a relationship component where people will trust people. Um. 107 00:05:34,839 --> 00:05:37,400 Speaker 1: But you know, we've also all become more comfortable with 108 00:05:37,440 --> 00:05:40,560 Speaker 1: technology over the last ten years. Right, You're you're comfortable 109 00:05:40,560 --> 00:05:42,719 Speaker 1: putting all of your banking information to paying your bills 110 00:05:42,720 --> 00:05:45,640 Speaker 1: online and ten years ago you probably weren't, Thanks very much, 111 00:05:45,760 --> 00:05:49,360 Speaker 1: Kevin McPartland. He is the principal Market structure and Technology 112 00:05:49,440 --> 00:06:06,039 Speaker 1: at Greenwich Associates. Well, the rebuilding in Texas as well 113 00:06:06,080 --> 00:06:09,200 Speaker 1: as in Florida continues, and here to tell us more 114 00:06:09,279 --> 00:06:11,159 Speaker 1: about the people that will do a lot of the 115 00:06:11,200 --> 00:06:14,800 Speaker 1: rebuilding is our own pressant. Gopaul Prashant joins us from 116 00:06:14,800 --> 00:06:18,359 Speaker 1: our Boston bureau home to Bloomberg one oh six one Boston, 117 00:06:18,440 --> 00:06:22,200 Speaker 1: Newburyport thirteen thirty in Metro West and the South Shore Pressant. 118 00:06:22,240 --> 00:06:24,560 Speaker 1: Always a pleasure and maybe just to start off by 119 00:06:24,680 --> 00:06:29,080 Speaker 1: describing this industry which really sort of favors mom and 120 00:06:29,279 --> 00:06:33,400 Speaker 1: pop outfits, uh that are really expected to make a 121 00:06:33,520 --> 00:06:35,680 Speaker 1: decent amount of money because there's a lot of clean 122 00:06:35,760 --> 00:06:38,760 Speaker 1: up to go around. Well, it's it's kind of an 123 00:06:38,839 --> 00:06:41,800 Speaker 1: industry that's sort of floorat of the radar. I don't 124 00:06:41,800 --> 00:06:45,560 Speaker 1: think people even realized it was an industry. UM. But 125 00:06:46,080 --> 00:06:50,240 Speaker 1: you know, you have uh, you have various sizes of companies. 126 00:06:50,320 --> 00:06:52,920 Speaker 1: You know, the largest company in the space is a 127 00:06:53,000 --> 00:06:56,320 Speaker 1: company called belfour out of Michigan. And and they do 128 00:06:57,120 --> 00:07:00,240 Speaker 1: this reconstruction work around the globe. And I know they 129 00:07:00,320 --> 00:07:03,960 Speaker 1: they've they're expecting record revenues this year at one point 130 00:07:04,040 --> 00:07:06,880 Speaker 1: seven billions. So it's a it's a pretty large company. 131 00:07:07,600 --> 00:07:10,800 Speaker 1: Um And and then you have a mid sized players 132 00:07:10,880 --> 00:07:14,560 Speaker 1: like the one I wrote about, UM, a company called 133 00:07:14,640 --> 00:07:19,040 Speaker 1: Cavalry Construction. Uh. You know, the name is pretty appropriate. 134 00:07:19,800 --> 00:07:23,640 Speaker 1: They they mark they kind of ride into areas where 135 00:07:23,640 --> 00:07:28,720 Speaker 1: they're hurricanes and other storms around the South and rebuild 136 00:07:28,800 --> 00:07:33,520 Speaker 1: homes and businesses. Um and and then you have sort 137 00:07:33,560 --> 00:07:36,600 Speaker 1: of smaller players. Many of them are sort of shady. 138 00:07:37,160 --> 00:07:39,040 Speaker 1: So it could be people who just show up your 139 00:07:39,080 --> 00:07:42,200 Speaker 1: door with a pickup truck after a storm. Uh. And 140 00:07:42,640 --> 00:07:44,840 Speaker 1: you know, in some cases they might steal from you 141 00:07:45,240 --> 00:07:48,160 Speaker 1: or or uh take a down payment and then leave. 142 00:07:48,320 --> 00:07:50,920 Speaker 1: So not all of them are like that, of course, 143 00:07:51,000 --> 00:07:53,280 Speaker 1: but there's they're they're various kinds of these companies. So 144 00:07:53,360 --> 00:07:56,960 Speaker 1: how expensive is it bresciant to rebuild your home after 145 00:07:57,080 --> 00:08:00,400 Speaker 1: it's gotten flooded. And what's the process of, say a 146 00:08:00,520 --> 00:08:04,680 Speaker 1: Michigan based company, of going down to Houston, getting enough 147 00:08:04,760 --> 00:08:08,160 Speaker 1: workers and flooding the zone, getting in there and uh 148 00:08:08,400 --> 00:08:12,320 Speaker 1: and reconstructing things quickly. Well, okay, so let me take 149 00:08:12,400 --> 00:08:15,040 Speaker 1: these two things. So in terms of the cost um 150 00:08:15,360 --> 00:08:19,360 Speaker 1: it varies, so that the cavalry construction charges six to 151 00:08:19,480 --> 00:08:22,200 Speaker 1: eight dollars a square foot for the first step of 152 00:08:22,240 --> 00:08:25,880 Speaker 1: the process, which is to um, you know, pull out 153 00:08:25,920 --> 00:08:30,400 Speaker 1: the soggy wood and dry wall and um uh and 154 00:08:30,640 --> 00:08:33,480 Speaker 1: and and everything else in the house, rip it all out, 155 00:08:34,040 --> 00:08:37,600 Speaker 1: bring in fans into human fires, treat for mold um. 156 00:08:37,960 --> 00:08:40,480 Speaker 1: So that so for a three thousand square foot house, 157 00:08:40,800 --> 00:08:44,480 Speaker 1: that alone would cost you about twenty four thou dollars um. 158 00:08:44,840 --> 00:08:48,120 Speaker 1: And then to reconstruct a house of that size it 159 00:08:48,120 --> 00:08:52,000 Speaker 1: would be about hift um for But you know, of 160 00:08:52,080 --> 00:08:55,200 Speaker 1: course they're doing you know, houses up to twenty million, 161 00:08:55,360 --> 00:08:58,520 Speaker 1: and those larger and more expensive houses are going to 162 00:08:58,600 --> 00:09:00,640 Speaker 1: get much more expensive finish is and that will be 163 00:09:01,240 --> 00:09:03,559 Speaker 1: very costly. And so that's one part of it. And 164 00:09:03,600 --> 00:09:06,120 Speaker 1: the US about the company's the company from Michigan. So 165 00:09:06,480 --> 00:09:08,439 Speaker 1: how do they go go about this day. I think 166 00:09:08,440 --> 00:09:12,079 Speaker 1: they have even people that they sent to Texas. You know, 167 00:09:12,120 --> 00:09:17,199 Speaker 1: they they have employees UM and so they sent I 168 00:09:17,280 --> 00:09:20,160 Speaker 1: think at least that many there, and they have I 169 00:09:20,240 --> 00:09:22,280 Speaker 1: think they're to start with in Florida. I think they 170 00:09:22,320 --> 00:09:26,000 Speaker 1: were going to have uh fiveing or and forty, doubling 171 00:09:26,080 --> 00:09:28,719 Speaker 1: the size of their existing force in Florida. They have 172 00:09:29,160 --> 00:09:32,320 Speaker 1: people all over the country in the world, so there 173 00:09:32,360 --> 00:09:34,600 Speaker 1: are already people in place, and they bringing additional people. 174 00:09:35,200 --> 00:09:37,400 Speaker 1: For Sean, maybe you could speak about the the the 175 00:09:37,520 --> 00:09:42,000 Speaker 1: additional people that might not be available because of either 176 00:09:42,200 --> 00:09:47,520 Speaker 1: immigration laws or immigration fears, or just the disposition of 177 00:09:47,600 --> 00:09:51,160 Speaker 1: the workforce. Yeah, that's a that's a tough issue because 178 00:09:51,200 --> 00:09:53,839 Speaker 1: we we've had a kind of a labor shortage and 179 00:09:54,120 --> 00:09:58,839 Speaker 1: construction for quite some time now, and uh so this 180 00:09:59,040 --> 00:10:01,319 Speaker 1: is just sort of exact surbating that in places like 181 00:10:02,440 --> 00:10:07,319 Speaker 1: UH Florida and Texas, UH and and Texas. UM. You know, 182 00:10:07,559 --> 00:10:11,400 Speaker 1: a lot of these companies, including the ones reconstructing houses 183 00:10:11,480 --> 00:10:15,640 Speaker 1: and also home builders UH and others who need construction 184 00:10:15,679 --> 00:10:20,400 Speaker 1: workers are are struggling to find people. And that's it's 185 00:10:20,440 --> 00:10:24,160 Speaker 1: getting worse because of uh, sort of the crackdown on 186 00:10:24,679 --> 00:10:28,640 Speaker 1: undocumented workers. Many of them are sort of uh, you know, 187 00:10:28,880 --> 00:10:31,640 Speaker 1: in hiding. Uh. What I've heard is in some cases, 188 00:10:31,800 --> 00:10:34,559 Speaker 1: if you have a family, or say a husband and 189 00:10:34,640 --> 00:10:39,319 Speaker 1: wife and kids, um, one of them on one of 190 00:10:39,400 --> 00:10:42,839 Speaker 1: the parents will stop working and stay at home with 191 00:10:42,960 --> 00:10:45,439 Speaker 1: the kids just in case the other, you know, the 192 00:10:45,520 --> 00:10:50,360 Speaker 1: other one is uh is deported. So someone's home with 193 00:10:50,400 --> 00:10:53,360 Speaker 1: the kids. So there's a lot of a lot of fear. Um. 194 00:10:54,160 --> 00:10:56,480 Speaker 1: Texas in particular, there there's a bill in place that 195 00:10:57,679 --> 00:11:02,760 Speaker 1: uh scaring people um uh immigration bill. So so there's uh, 196 00:11:03,640 --> 00:11:06,439 Speaker 1: there's a lot of reasons why this could the the uh, 197 00:11:06,880 --> 00:11:10,040 Speaker 1: the shortage could really slow down the reconstruction, and it 198 00:11:10,080 --> 00:11:16,800 Speaker 1: will also potentially make it more who pays for this. Uh. 199 00:11:17,080 --> 00:11:22,199 Speaker 1: So in the case of flooding, it's pretty much we 200 00:11:22,320 --> 00:11:26,280 Speaker 1: have a we have National flood insurance, and so it's 201 00:11:26,280 --> 00:11:29,240 Speaker 1: those premiums um and I think they're they're gonna have 202 00:11:29,400 --> 00:11:34,920 Speaker 1: to they're subsizing that with taxpayers uh and UM. So 203 00:11:35,040 --> 00:11:38,680 Speaker 1: there's that, and then you have homeowners dipping into their pockets. 204 00:11:39,840 --> 00:11:41,959 Speaker 1: I think that's the bulk of it in Texas because 205 00:11:42,640 --> 00:11:45,600 Speaker 1: you know, in the Houston area, for example, only fourteen 206 00:11:45,679 --> 00:11:49,959 Speaker 1: percent of people have flood insurance of homeowners, so the 207 00:11:50,040 --> 00:11:54,240 Speaker 1: bulk of these victims probably also do not have flood insurance, 208 00:11:54,240 --> 00:11:57,320 Speaker 1: so they're going to have to figure something out. Shan. 209 00:11:57,400 --> 00:12:00,959 Speaker 1: Then there's also the whole interest ructure and economy that 210 00:12:01,080 --> 00:12:02,880 Speaker 1: needs to be put in place in order to support 211 00:12:02,920 --> 00:12:05,600 Speaker 1: the workers once they arrive at the places where they're 212 00:12:05,600 --> 00:12:09,640 Speaker 1: going to do all this reconstruction. Yeah, you can if 213 00:12:09,720 --> 00:12:12,640 Speaker 1: you think about it, it's a it's a pretty uh 214 00:12:13,360 --> 00:12:17,839 Speaker 1: difficult situation because it's there's a housing shortage. So a 215 00:12:17,920 --> 00:12:22,600 Speaker 1: lot of the homes, you know, tens of thousands of apartments, 216 00:12:22,640 --> 00:12:24,360 Speaker 1: I don't know the exact number of a hundred and 217 00:12:24,559 --> 00:12:27,599 Speaker 1: fifty thousand houses or something like that were damaged and 218 00:12:28,320 --> 00:12:31,560 Speaker 1: in Texas as a result of the storm. So there's 219 00:12:31,559 --> 00:12:34,160 Speaker 1: a shortage of housing that just got a lot worse. Uh. 220 00:12:34,320 --> 00:12:36,719 Speaker 1: And then you bring in all these people to kind 221 00:12:36,760 --> 00:12:40,600 Speaker 1: of reconstruct, and they need a place to live. Uh. 222 00:12:40,720 --> 00:12:43,480 Speaker 1: So you can imagine that houses that were not flooded 223 00:12:43,559 --> 00:12:46,679 Speaker 1: or properties that were not flooded, those those uh, it's 224 00:12:46,720 --> 00:12:48,319 Speaker 1: gonna get a lot more expensive to live there. So 225 00:12:48,440 --> 00:12:51,000 Speaker 1: this is this is gonna be an ongoing issue. I 226 00:12:51,040 --> 00:12:53,840 Speaker 1: gotta say, whoever got into this business is a genius, 227 00:12:54,000 --> 00:12:56,840 Speaker 1: because I'm sure that they will only get busier, uh, 228 00:12:56,920 --> 00:12:58,920 Speaker 1: and it's only going to get more lucrative. Or any 229 00:12:58,960 --> 00:13:01,760 Speaker 1: of the real big property companies getting in on this. 230 00:13:03,000 --> 00:13:05,199 Speaker 1: You know, I haven't heard about it yet. UM, I 231 00:13:05,440 --> 00:13:08,440 Speaker 1: wouldn't be surprised. Uh. You know, it's a pretty It's 232 00:13:08,480 --> 00:13:13,160 Speaker 1: still there's some big players, but there aren't that many. 233 00:13:13,360 --> 00:13:17,920 Speaker 1: This company, bell for UH just keeps buying up smaller players, 234 00:13:18,080 --> 00:13:20,800 Speaker 1: and you know, there were some regional ones that they've 235 00:13:20,960 --> 00:13:23,560 Speaker 1: purchased and they're you know, so they're not that many 236 00:13:23,720 --> 00:13:27,040 Speaker 1: very large companies, right. Preshanko Paul, thank you so much 237 00:13:27,080 --> 00:13:30,080 Speaker 1: for joining us. Really a fabulous story and really interesting 238 00:13:30,200 --> 00:13:32,680 Speaker 1: and I'm curious to see how many people actually shell 239 00:13:32,760 --> 00:13:36,320 Speaker 1: out for for full renovations and making sure it's all okay. 240 00:13:36,600 --> 00:13:38,760 Speaker 1: Praushanko Poul. He covers real estate for US. He is 241 00:13:38,800 --> 00:13:42,160 Speaker 1: based in Boston, UH and he is a Bloomberg News 242 00:13:42,320 --> 00:13:57,440 Speaker 1: reporter on Lisa Brown Waits along with Pim Fox. Yesterday, 243 00:13:57,960 --> 00:14:02,040 Speaker 1: JP Morgan chief executive officer Jamie Diamond spoke at an 244 00:14:02,080 --> 00:14:06,040 Speaker 1: investor conference in New York. He said that bitcoin bitcoin 245 00:14:06,280 --> 00:14:10,480 Speaker 1: won't end well. It's a quote fraud and quote worse 246 00:14:10,679 --> 00:14:15,840 Speaker 1: than tulip bulbs. Talking about the uh most well known 247 00:14:16,120 --> 00:14:20,240 Speaker 1: example of a bubble in financial markets to discuss, I 248 00:14:20,280 --> 00:14:22,760 Speaker 1: want to bring in Leonel Laurant. He's a columnist covering 249 00:14:22,840 --> 00:14:26,800 Speaker 1: finance and markets for Bloomberg goad Fly based in London. Leonella, 250 00:14:26,960 --> 00:14:30,480 Speaker 1: you wrote a column saying that perhaps Jamie Diamond is 251 00:14:30,600 --> 00:14:34,960 Speaker 1: onto something and the bitcoin very much won't end well 252 00:14:35,200 --> 00:14:37,240 Speaker 1: and will end up kind of blowing up. Can you 253 00:14:37,320 --> 00:14:42,360 Speaker 1: explain your argument here? Yes, I think that even though 254 00:14:42,840 --> 00:14:46,440 Speaker 1: Diamond's words may have got everybody excited and keen to 255 00:14:46,520 --> 00:14:50,400 Speaker 1: point out how wrong and maybe even you know, outdated, 256 00:14:50,520 --> 00:14:53,040 Speaker 1: his view is. I think his point is basically that 257 00:14:53,160 --> 00:14:56,560 Speaker 1: this is a market mania like tulips, and that ultimately 258 00:14:56,640 --> 00:14:59,640 Speaker 1: this is going to eat itself and collapse on it 259 00:14:59,760 --> 00:15:02,920 Speaker 1: so and before any regulator gets involved. And my view 260 00:15:03,560 --> 00:15:06,400 Speaker 1: and I look at bitcoin but also other sort of 261 00:15:06,520 --> 00:15:12,240 Speaker 1: hyped up millennial alternative asset classes like marijuana stocks as well, 262 00:15:12,960 --> 00:15:15,640 Speaker 1: and I just think that the amount of supply that's 263 00:15:15,680 --> 00:15:18,920 Speaker 1: coming in and excitement around it maybe doesn't quite match 264 00:15:18,960 --> 00:15:20,440 Speaker 1: the demand that we see on the ground. And I 265 00:15:20,560 --> 00:15:23,280 Speaker 1: think that is reason enough to at least be skeptical 266 00:15:23,480 --> 00:15:27,120 Speaker 1: about this idea that you can just keep growing exponentially. So, Lena, 267 00:15:27,160 --> 00:15:28,680 Speaker 1: can you give us a little more example what you 268 00:15:28,800 --> 00:15:32,120 Speaker 1: mean about supply. I know that you pinpointed the fact 269 00:15:32,200 --> 00:15:35,840 Speaker 1: that even though bitcoin has attracted a lot of investor money, 270 00:15:36,240 --> 00:15:39,400 Speaker 1: you can't actually use it to buy that much more 271 00:15:39,720 --> 00:15:45,200 Speaker 1: in stores or common places of of buying stuff. So 272 00:15:45,600 --> 00:15:48,160 Speaker 1: is that what you're talking about or is it something else? So? 273 00:15:48,240 --> 00:15:50,360 Speaker 1: I think it's something else for me. There's a there's 274 00:15:50,360 --> 00:15:52,240 Speaker 1: a couple of issues in terms of supply. I mean, 275 00:15:52,320 --> 00:15:55,680 Speaker 1: first of all, there are new coins being created all 276 00:15:55,760 --> 00:15:58,640 Speaker 1: the time. Uh the I think there's something like eight 277 00:15:58,720 --> 00:16:02,160 Speaker 1: hundred cryptocurrencies you can track now on on coin cap 278 00:16:02,760 --> 00:16:06,160 Speaker 1: and um, what's what's happening? There is essentially more and 279 00:16:06,280 --> 00:16:11,760 Speaker 1: more new increasingly, Uh, you know, volatile and potentially risky 280 00:16:11,880 --> 00:16:16,960 Speaker 1: currencies are being created. Bitcoin itself recently split into effectively 281 00:16:17,080 --> 00:16:19,560 Speaker 1: with a new currency called bitcoin Cash that was supposed 282 00:16:19,600 --> 00:16:22,320 Speaker 1: to improve upon the original. I mean that that alone 283 00:16:22,360 --> 00:16:26,440 Speaker 1: has been enough to actually have investors questioning just how 284 00:16:26,840 --> 00:16:30,600 Speaker 1: unique and valuable the If you just look at the technology, 285 00:16:30,640 --> 00:16:32,840 Speaker 1: pind it, how unique and valuable it is I mean, 286 00:16:32,880 --> 00:16:35,720 Speaker 1: if you have hundreds of this type of currency and 287 00:16:36,520 --> 00:16:40,520 Speaker 1: you can't really pinpoint any increase in consumer adoption, right 288 00:16:40,560 --> 00:16:44,720 Speaker 1: because analysts will tell you that since there's been a 289 00:16:44,800 --> 00:16:48,880 Speaker 1: huge boom in trading bitcoin and other cryptocurrencies, but maybe 290 00:16:48,920 --> 00:16:51,760 Speaker 1: not at all an increase in using it on the ground, 291 00:16:52,640 --> 00:16:54,760 Speaker 1: that's enough for people to think, well, if there's a 292 00:16:55,040 --> 00:16:57,040 Speaker 1: if there's a heck of a lot of supply and 293 00:16:57,160 --> 00:16:59,960 Speaker 1: not a lot of actual on the ground adoption, isn't 294 00:17:00,080 --> 00:17:03,760 Speaker 1: that a disconnect? In times of the investment thesis? Leonel, 295 00:17:03,920 --> 00:17:06,439 Speaker 1: I want to just play Devil's advocate and separate these 296 00:17:06,440 --> 00:17:08,520 Speaker 1: two issues for just a moment. Let's start with bitcoin, 297 00:17:08,600 --> 00:17:10,640 Speaker 1: because I mean, there are new stocks that come onto 298 00:17:10,680 --> 00:17:12,560 Speaker 1: the market all the time. Some of them are traded 299 00:17:12,600 --> 00:17:14,359 Speaker 1: on exchanges that we know about, some of them are 300 00:17:14,400 --> 00:17:16,600 Speaker 1: traded on exchanges that you don't want to know about. 301 00:17:17,000 --> 00:17:19,800 Speaker 1: New bonds are created all the time, new asset classes, 302 00:17:19,920 --> 00:17:23,480 Speaker 1: new investment instruments are created all the time. And you 303 00:17:23,560 --> 00:17:25,880 Speaker 1: only have to ask someone who bought a commercial mortgage 304 00:17:25,920 --> 00:17:28,679 Speaker 1: backed security what it's like to buy something that's new 305 00:17:28,760 --> 00:17:31,440 Speaker 1: that doesn't have a ready market. We understand that, but 306 00:17:31,600 --> 00:17:34,440 Speaker 1: isn't this a challenge to the way that banks operate, 307 00:17:34,600 --> 00:17:37,200 Speaker 1: And doesn't it make sense that Jamie Diamond would say this, 308 00:17:38,880 --> 00:17:40,880 Speaker 1: So you use a couple of interesting points. Do see 309 00:17:40,920 --> 00:17:44,520 Speaker 1: the idea that new coins and they call themselves initial 310 00:17:44,600 --> 00:17:47,480 Speaker 1: coin offerings, I think in a nodes to initial price offerings, right, 311 00:17:47,520 --> 00:17:49,399 Speaker 1: I think the people who come up with these new 312 00:17:49,480 --> 00:17:51,720 Speaker 1: coins want to be seen as new companies and I 313 00:17:51,800 --> 00:17:55,320 Speaker 1: p s in their own right. Um, I honestly see 314 00:17:55,400 --> 00:17:57,800 Speaker 1: this as much more speculative. I mean, if you look 315 00:17:57,840 --> 00:18:00,560 Speaker 1: at the prospectus of an i P O, if you 316 00:18:00,640 --> 00:18:03,920 Speaker 1: look at the attempts to actually make some claim to 317 00:18:04,080 --> 00:18:06,919 Speaker 1: maximize shareholder value for a for a for a stock, 318 00:18:07,520 --> 00:18:10,080 Speaker 1: I just don't see that happening on on the on 319 00:18:10,160 --> 00:18:12,520 Speaker 1: the tokens, on on the I c O s. Hold 320 00:18:12,560 --> 00:18:14,840 Speaker 1: on a second, because there's a difference between some of 321 00:18:14,960 --> 00:18:18,800 Speaker 1: the new cryptocurrencies that are coming out through initial coin 322 00:18:18,920 --> 00:18:23,400 Speaker 1: offerings and Bitcoin. For one, there actually is a critical 323 00:18:23,480 --> 00:18:27,200 Speaker 1: mass with Bitcoin, and there is an established following and 324 00:18:27,400 --> 00:18:30,600 Speaker 1: miners and everything else. So it's not quite the same 325 00:18:30,680 --> 00:18:32,760 Speaker 1: as an i c O tied to a company that 326 00:18:33,359 --> 00:18:35,639 Speaker 1: is a startup that no one's heard of. So I 327 00:18:36,000 --> 00:18:38,560 Speaker 1: guess I have to wonder, you know, is that you 328 00:18:38,640 --> 00:18:41,600 Speaker 1: know there will be a winner from the cryptocurrency boom, 329 00:18:41,800 --> 00:18:45,520 Speaker 1: and there could very well be one cryptocurrency that gets 330 00:18:45,520 --> 00:18:47,560 Speaker 1: adopted and becomes the thing, and I think that that 331 00:18:47,640 --> 00:18:50,840 Speaker 1: could be the bet really with bitcoin now, I think 332 00:18:50,880 --> 00:18:54,000 Speaker 1: we're maybe delving too much into the technology itself and 333 00:18:54,040 --> 00:18:57,399 Speaker 1: whether it's and whether it serves a purpose and the price. 334 00:18:57,520 --> 00:18:59,400 Speaker 1: I think the main reason why we are talking about 335 00:18:59,480 --> 00:19:02,360 Speaker 1: this today is that it is now trading around four 336 00:19:02,400 --> 00:19:04,800 Speaker 1: thousand dollars and slightly below, and at the start of 337 00:19:04,800 --> 00:19:06,359 Speaker 1: the year it was one thousand dollars. I think that 338 00:19:06,440 --> 00:19:08,480 Speaker 1: if this was just a question of saying, do you 339 00:19:08,600 --> 00:19:10,879 Speaker 1: like the idea of bitcoin, do you like the code 340 00:19:10,920 --> 00:19:13,040 Speaker 1: behind it? Do you see a community behind it? That's 341 00:19:13,080 --> 00:19:15,760 Speaker 1: one thing the main reason why people are betting on it, 342 00:19:15,880 --> 00:19:18,760 Speaker 1: speculating on it, playing it. I mean, I'm sorry. I 343 00:19:18,840 --> 00:19:20,480 Speaker 1: think it's got to be the fact that that the 344 00:19:20,560 --> 00:19:22,720 Speaker 1: price has gone up so much again some of like 345 00:19:22,800 --> 00:19:26,760 Speaker 1: a fift increase in transaction volumes, but very little increase 346 00:19:26,800 --> 00:19:29,840 Speaker 1: in consumer adoption on the ground. To me, that spells speculation, 347 00:19:30,040 --> 00:19:32,639 Speaker 1: and it doesn't spell the kind of quote unquote good 348 00:19:32,680 --> 00:19:35,040 Speaker 1: speculation where you think that something is going to be 349 00:19:35,119 --> 00:19:38,560 Speaker 1: worth something for a fundamental reason. And to your other point, 350 00:19:38,600 --> 00:19:41,160 Speaker 1: excuse me about about the bagging industry and whether Jamie 351 00:19:41,240 --> 00:19:45,040 Speaker 1: Diamond has a vested interest. Well, okay, maybe, but I 352 00:19:45,119 --> 00:19:47,679 Speaker 1: also feel like I think people people know that. I mean, 353 00:19:47,720 --> 00:19:49,800 Speaker 1: there are there are plenty of bankers out there who 354 00:19:50,400 --> 00:19:53,720 Speaker 1: might change their mind, who might even say, well, um, 355 00:19:54,000 --> 00:19:57,320 Speaker 1: you know, I was very dismissive of it a few 356 00:19:57,359 --> 00:20:00,200 Speaker 1: years ago. Now I'm not really going to take a view. Um, 357 00:20:00,720 --> 00:20:03,479 Speaker 1: And frankly, I think it's totally okay, and it's good 358 00:20:03,520 --> 00:20:04,960 Speaker 1: to change your mind. I think that the fact that 359 00:20:05,080 --> 00:20:08,200 Speaker 1: he hasn't doesn't necessarily mean that this is just because 360 00:20:08,320 --> 00:20:10,439 Speaker 1: he's he feels it's a threat to backs. I mean, 361 00:20:10,480 --> 00:20:12,399 Speaker 1: we've got to leave it there. A line on Lauren, 362 00:20:12,480 --> 00:20:15,280 Speaker 1: Thanks very much our Bloomberg gad Fly columns. Great column. 363 00:20:15,359 --> 00:20:30,000 Speaker 1: Check it out on Bloomberg dot com. By one get 364 00:20:30,119 --> 00:20:33,680 Speaker 1: one free. Yes, this applies to the iPhone eight and 365 00:20:33,880 --> 00:20:36,639 Speaker 1: eight plus, among other phones from eight T and T 366 00:20:36,960 --> 00:20:39,400 Speaker 1: now A T and T hasn't said whether the deal 367 00:20:39,440 --> 00:20:43,440 Speaker 1: will be extended to Apple's most expensive phone ever, that's 368 00:20:43,480 --> 00:20:47,480 Speaker 1: the nearly one thousand dollars I Phone ten. Here to 369 00:20:47,560 --> 00:20:50,320 Speaker 1: tell us more is Shira Ovid are Bloomberg gad Fly 370 00:20:50,600 --> 00:20:54,639 Speaker 1: columnists knowing all things technology and Apple? Shira, have you 371 00:20:54,680 --> 00:20:57,600 Speaker 1: already set aside a little fun to purchase your new 372 00:20:58,040 --> 00:21:02,240 Speaker 1: iPhone ten? I have not, I will confess, although I 373 00:21:02,320 --> 00:21:05,600 Speaker 1: did walk by the Fifth Avenue Apple store this morning 374 00:21:05,960 --> 00:21:08,320 Speaker 1: and there were a couple of dudes and lawn chairs 375 00:21:08,440 --> 00:21:10,399 Speaker 1: on the sidewalk. Maybe they were just hanging out on 376 00:21:10,440 --> 00:21:13,359 Speaker 1: the sidewalk, or maybe they were already starting a line 377 00:21:13,800 --> 00:21:16,840 Speaker 1: for the new phones. Can I just before we get 378 00:21:16,880 --> 00:21:21,359 Speaker 1: into any real substance, iPhone X is really iPhone ten? Well, 379 00:21:21,480 --> 00:21:26,520 Speaker 1: I mean yes, doesn't that kind of why? Why the 380 00:21:26,640 --> 00:21:29,040 Speaker 1: naming conventions are a little bit confusing now? Right? So 381 00:21:29,200 --> 00:21:36,200 Speaker 1: the UM properly, the non fancy new iPhones should be 382 00:21:36,280 --> 00:21:40,000 Speaker 1: called the seven s, but they called them eight, and 383 00:21:40,119 --> 00:21:44,280 Speaker 1: then the iPhone ten. It's the letter X, but they 384 00:21:44,320 --> 00:21:49,200 Speaker 1: pronounced it ten. Romanumer. It's the tant anniversary edition of 385 00:21:49,560 --> 00:21:52,080 Speaker 1: the iPhone. UM. Apple is gonna have a hard time 386 00:21:52,160 --> 00:21:54,560 Speaker 1: convincing people to call it the iPhone ten rather than 387 00:21:54,640 --> 00:21:57,159 Speaker 1: the iPhone X, And just to annoy them, I'm going 388 00:21:57,240 --> 00:21:59,760 Speaker 1: to call it the iPhone X. Okay, Well, that's got 389 00:22:00,080 --> 00:22:02,400 Speaker 1: is there's more free publicity for Apple, because of course 390 00:22:02,440 --> 00:22:06,240 Speaker 1: they don't get enough. Yeah, right, exactly, you can end 391 00:22:06,320 --> 00:22:08,520 Speaker 1: up talking about them. We'll talk about what's inside the phone, 392 00:22:08,560 --> 00:22:10,760 Speaker 1: what what can you expect. Let's say, before we get 393 00:22:10,800 --> 00:22:14,560 Speaker 1: to the the iPhone ten, let's talk about the iPhone 394 00:22:14,600 --> 00:22:17,080 Speaker 1: eight in the eight plus. What is so great about 395 00:22:17,119 --> 00:22:19,000 Speaker 1: those phones that they bother to bring them out as 396 00:22:19,080 --> 00:22:21,639 Speaker 1: new editions. Well, look, i mean the Apple does what 397 00:22:21,800 --> 00:22:26,520 Speaker 1: it does every year, which is it It upgrades the 398 00:22:26,960 --> 00:22:30,480 Speaker 1: current edition of the phone with more features and functions. 399 00:22:30,560 --> 00:22:34,040 Speaker 1: So the processor is faster, the battery life is longer. 400 00:22:34,400 --> 00:22:37,240 Speaker 1: They have a glass back now, which some people like 401 00:22:37,400 --> 00:22:41,080 Speaker 1: for aesthetic and other reasons. They'll be able to charge 402 00:22:41,880 --> 00:22:45,720 Speaker 1: wirelessly through these magnetic chargers, which again some people like. 403 00:22:46,560 --> 00:22:49,320 Speaker 1: Um So you know, there there's upgrades to them, although 404 00:22:49,359 --> 00:22:52,680 Speaker 1: they are certainly more modest upgrades than the higher priced 405 00:22:52,920 --> 00:22:56,439 Speaker 1: UM iPhone X as I'm calling it. Well, the post 406 00:22:56,560 --> 00:22:59,720 Speaker 1: phone reveal is is proving to be somewhat of a 407 00:22:59,800 --> 00:23:02,160 Speaker 1: hang over. The shares are down a little more than 408 00:23:02,560 --> 00:23:06,280 Speaker 1: one percent, and I'm wondering how much this is just uh, 409 00:23:06,400 --> 00:23:08,479 Speaker 1: you know, some of the excitement just coming down. I mean, 410 00:23:08,560 --> 00:23:11,080 Speaker 1: literally there was so much enthusiasm and the shares have 411 00:23:11,240 --> 00:23:14,720 Speaker 1: risen so much, and how much is this a bit 412 00:23:14,920 --> 00:23:18,800 Speaker 1: of skepticism about this transformation that's going on from the 413 00:23:18,840 --> 00:23:22,920 Speaker 1: phone becoming the primary point of technology, skipping over the PC, 414 00:23:23,160 --> 00:23:26,120 Speaker 1: skipping over the laptop, uh, and how well this will 415 00:23:26,160 --> 00:23:28,840 Speaker 1: be adopted. So there's a couple of things happening in 416 00:23:28,880 --> 00:23:32,040 Speaker 1: the stock price. You're right that the share price. Apple 417 00:23:32,080 --> 00:23:35,439 Speaker 1: share price has gone up significantly this year forty percent 418 00:23:35,560 --> 00:23:38,639 Speaker 1: plus before this week, and a lot of that is 419 00:23:38,720 --> 00:23:41,560 Speaker 1: on on anticipation that these new phone models will kind 420 00:23:41,600 --> 00:23:44,880 Speaker 1: of unleash this new sales cycle and kind of really 421 00:23:45,480 --> 00:23:48,080 Speaker 1: spike Apples revenor growth to a level it hasn't been 422 00:23:48,119 --> 00:23:51,120 Speaker 1: in a couple of a few years. UM. The other 423 00:23:51,200 --> 00:23:54,560 Speaker 1: issue is that the iPhone tan iPhone X model is 424 00:23:54,640 --> 00:23:58,119 Speaker 1: coming out quite late. Um, it's not going to go 425 00:23:58,320 --> 00:24:02,919 Speaker 1: on sale officially until November three, which is pretty unusually 426 00:24:03,040 --> 00:24:05,600 Speaker 1: late for a new iPhone model, in an indication that 427 00:24:05,720 --> 00:24:09,000 Speaker 1: there's probably a very limited supply of these phones. They're 428 00:24:09,320 --> 00:24:13,600 Speaker 1: hard to make, they have expensive, complicated components, uh, and 429 00:24:13,680 --> 00:24:16,600 Speaker 1: so that's gonna push some sales into later quarters. I 430 00:24:16,680 --> 00:24:18,680 Speaker 1: think that was reflected in the share price. But to 431 00:24:18,760 --> 00:24:22,159 Speaker 1: your broader point about the iPhone, Look, these smartphones are 432 00:24:22,200 --> 00:24:25,720 Speaker 1: the center of people's digital lives in many countries around 433 00:24:25,720 --> 00:24:29,320 Speaker 1: the world, and in places like China and Africa. You're 434 00:24:29,359 --> 00:24:32,560 Speaker 1: talking about a generation that sort of skipped over the 435 00:24:32,680 --> 00:24:36,240 Speaker 1: personal computer as the center of people's work and home 436 00:24:36,640 --> 00:24:40,480 Speaker 1: digital lives, and now the smartphone has become that. So 437 00:24:41,600 --> 00:24:44,960 Speaker 1: I mean a thousand dollars for something that people spend 438 00:24:45,119 --> 00:24:48,040 Speaker 1: hours on every day. You know, you start to amortize 439 00:24:48,080 --> 00:24:50,120 Speaker 1: the cost over the amount of time you spend. These 440 00:24:50,280 --> 00:24:54,080 Speaker 1: look less like luxury items and more like must have. Sure. 441 00:24:54,240 --> 00:24:55,800 Speaker 1: One of the things I noticed was that if you 442 00:24:55,920 --> 00:24:58,280 Speaker 1: were to be able, I know it comes available. I 443 00:24:58,320 --> 00:25:00,960 Speaker 1: guess the next month on pre order. This is for 444 00:25:01,040 --> 00:25:05,600 Speaker 1: the iPhone ten. If you're looking for those iPods AirPods, 445 00:25:05,640 --> 00:25:08,200 Speaker 1: I beg your pardon the air pods right the the 446 00:25:08,400 --> 00:25:13,520 Speaker 1: wireless your phones? Yeah? Um, thank you. Uh, they're not 447 00:25:13,720 --> 00:25:15,680 Speaker 1: They're not included in the box. You don't get that. 448 00:25:15,920 --> 00:25:18,800 Speaker 1: You don't get the fast charger. Um. You do get 449 00:25:18,840 --> 00:25:21,959 Speaker 1: the lightning cable, but you don't get a USBC. Um. 450 00:25:22,640 --> 00:25:25,600 Speaker 1: What what is Apple thinking? Why don't they put all 451 00:25:25,680 --> 00:25:30,119 Speaker 1: the latest stuff into their latest, you know, anniversary phones. 452 00:25:30,200 --> 00:25:31,919 Speaker 1: They don't have to. They don't have to. Well they 453 00:25:31,960 --> 00:25:35,640 Speaker 1: do have, um, they do include headphones with the new iPhones. 454 00:25:35,640 --> 00:25:38,320 Speaker 1: They're just not the wireless heads right your pods right 455 00:25:38,760 --> 00:25:42,120 Speaker 1: there yours? Um, but yes they don't have to. I mean, look, 456 00:25:42,720 --> 00:25:45,879 Speaker 1: Apple's not dumb. They want you to buy all of 457 00:25:46,000 --> 00:25:49,440 Speaker 1: their all of their things. And as someone who has 458 00:25:49,680 --> 00:25:52,520 Speaker 1: been to the Apple store and gritted my teeth to 459 00:25:52,720 --> 00:25:56,760 Speaker 1: pay eighty dollars for a new laptop charger, I mean, 460 00:25:56,800 --> 00:25:59,880 Speaker 1: these people are not morons. Right. There's getting high margins 461 00:26:00,040 --> 00:26:04,120 Speaker 1: on these accessory sales, and there's no reason for them 462 00:26:04,160 --> 00:26:07,280 Speaker 1: to include that with your already thousand dollar iPhone. It 463 00:26:07,440 --> 00:26:10,080 Speaker 1: is an amazing experience to go to an Apple store 464 00:26:10,200 --> 00:26:13,600 Speaker 1: and see a line extending down the center of the 465 00:26:13,680 --> 00:26:16,719 Speaker 1: store with people with like thousand dollar items in their 466 00:26:16,800 --> 00:26:19,480 Speaker 1: hands buying them like groceries. I mean, it is just 467 00:26:19,680 --> 00:26:24,959 Speaker 1: really truly a remarkable marketing feat that they have accomplished. Um, 468 00:26:25,200 --> 00:26:28,000 Speaker 1: Shara Ovida, thank you so much and keep on keeping 469 00:26:28,040 --> 00:26:30,119 Speaker 1: on with that iPhone X. I'll look to you to 470 00:26:30,200 --> 00:26:34,320 Speaker 1: be the rebel. Shara Ovida is a Bloomberg Gadfly columnist 471 00:26:34,400 --> 00:26:37,639 Speaker 1: focusing on all things technology and my fellow skeptic. I 472 00:26:37,680 --> 00:26:43,000 Speaker 1: love talking with Shia always. Thanks for listening to the 473 00:26:43,040 --> 00:26:46,120 Speaker 1: Bloomberg P and L podcast. You can subscribe and listen 474 00:26:46,160 --> 00:26:50,320 Speaker 1: to interviews at Apple Podcasts, SoundCloud, or whatever podcast platform 475 00:26:50,359 --> 00:26:54,240 Speaker 1: you prefer. I'm Pim Fox. I'm on Twitter at pim Fox. 476 00:26:54,600 --> 00:26:58,080 Speaker 1: I'm on Twitter at Lisa Abramo. It's one before the podcast. 477 00:26:58,160 --> 00:27:09,560 Speaker 1: You can always catch us worldwide on Bloomberg Radio. H