WEBVTT - Powell Talks Transitory Risks, Tariffs 'China Shock' & Inheritance Tax Tactics 0:00:02.600 --> 0:00:07.080 Bloomberg Audio Studios, podcasts, radio news. 0:00:09.760 --> 0:00:12.719 This is the Blueberg Day Baqo podcast, available every morning 0:00:12.720 --> 0:00:15.560 on Apple, Spotify or wherever you listen. It's Thursday, the 0:00:15.600 --> 0:00:18.600 twentieth of March here in London. I'm Caroline Hepka and. 0:00:18.560 --> 0:00:22.119 I'm Stephen Carroll. Coming up today, Jerome Powell calls tariff 0:00:22.200 --> 0:00:27.400 risks transitory as he seeks to downplay growth and inflation concerns. 0:00:27.120 --> 0:00:30.080 On leashing a new China shock. We look at the 0:00:30.160 --> 0:00:35.280 unintended consequences of Trump's tariffs on developing economies. 0:00:34.800 --> 0:00:37.720 Plus getting creative. How wealthy people in the UK are 0:00:37.760 --> 0:00:41.239 adopting new strategies to limit the effects of changes to 0:00:41.320 --> 0:00:42.320 inheritance tax. 0:00:42.520 --> 0:00:44.600 Let's start with a round up of our top stories. 0:00:45.040 --> 0:00:46.480 The Federal Reserve Charge your own. 0:00:46.520 --> 0:00:50.440 Powell has downplayed concerns about US economic growth and the 0:00:50.479 --> 0:00:54.160 impact of President Trump's trade war on inflation, as the 0:00:54.160 --> 0:00:57.320 Central Bank held rates steady for a second straight meeting. 0:00:57.760 --> 0:01:00.880 Speaking to reporters following the two day policy meeting, Powell 0:01:00.920 --> 0:01:05.000 went as far as reviving the controversial term transitory. 0:01:05.280 --> 0:01:07.560 It can be the case that it's appropriate sometimes to 0:01:07.640 --> 0:01:10.800 look through inflation if it's going to go away quickly 0:01:10.840 --> 0:01:14.479 without action by US if it's transitory, and that can 0:01:14.520 --> 0:01:18.800 be the case in the case of tariff inflation. I 0:01:18.840 --> 0:01:23.840 think that would depend on the tariff inflation moving through 0:01:23.840 --> 0:01:26.760 fairly quickly, and would depend critically as well on inflation 0:01:26.840 --> 0:01:30.959 expectations being well anchored longer term inflation expectations being well. 0:01:31.920 --> 0:01:34.760 Pal's use of transitory was surprising too many after the 0:01:34.800 --> 0:01:38.080 Fed used the same term when inflation exploded after the 0:01:38.080 --> 0:01:40.920 onset of the COVID nineteen pandemic. The FED chair went 0:01:40.959 --> 0:01:43.440 on to call that scenario the base case, but then 0:01:43.480 --> 0:01:47.039 proceeded to stay, officials really can't know if the tariff 0:01:47.080 --> 0:01:48.480 effects will be temporary. 0:01:49.400 --> 0:01:52.360 The S and P five hundred moved higher as Powell spoke, 0:01:52.440 --> 0:01:55.280 and treasure yields dropped as markets continue to look for 0:01:55.360 --> 0:01:58.960 clues on the impact of President Trump's trade policies. In 0:01:59.000 --> 0:02:03.360 apposed on truth social President Trump wrote, quote, the FED 0:02:03.400 --> 0:02:07.040 would be much better off cutting rates as US tariffs 0:02:07.280 --> 0:02:12.239 start to transition ease their way into the economy end quote. 0:02:12.360 --> 0:02:16.080 The decision to actively lobby the Fed for lower interest 0:02:16.160 --> 0:02:20.120 rates came just hours after White House National Economic Council 0:02:20.200 --> 0:02:24.720 Director Kevin Hassett tried to reassure investors about the Central 0:02:24.760 --> 0:02:29.920 Bank's independence. In this back and forth with reporters, we very. 0:02:29.840 --> 0:02:31.239 Much respect the independence of the FED. 0:02:31.639 --> 0:02:35.600 There's a massive literature to independent sepprobates perform. 0:02:35.320 --> 0:02:37.560 Better for academics, and so I don't think that's a districy. 0:02:37.600 --> 0:02:40.320 It doesn't think you en Mari. I think that's been 0:02:40.360 --> 0:02:41.680 resolved of the previous administration. 0:02:42.680 --> 0:02:45.799 Kevin Hassett were speaking as the Trump administration prepares to 0:02:45.800 --> 0:02:49.680 ann as a fresh wave of so called reciprocal tariffs 0:02:49.720 --> 0:02:51.160 on the second of April. 0:02:51.840 --> 0:02:55.120 New Bloomberg reporting is showing how US tariffs are reshaping 0:02:55.160 --> 0:02:58.760 global trade. Emerging markets are facing a so called China 0:02:58.880 --> 0:03:02.239 shock as cheap gods derive in developing countries. You and 0:03:02.280 --> 0:03:03.400 Parts has the details. 0:03:04.360 --> 0:03:06.880 China's trade surplus last year reached a record of close 0:03:06.919 --> 0:03:10.760 to one trillion dollars, but as exports to the US flatline, 0:03:10.880 --> 0:03:14.799 China's hyper competitive manufacturers have been targeting other markets around 0:03:14.840 --> 0:03:17.000 the world. Blimok has been looking at the pressures being 0:03:17.040 --> 0:03:20.520 faced by the likes of Indonesia, Brazil, Thailand and Vietnam, 0:03:20.639 --> 0:03:23.520 as well as big ticket items like electrical vehicles and 0:03:23.560 --> 0:03:27.560 solar panels. China's exporters are causing job losses in sectors 0:03:27.639 --> 0:03:32.200 like electrical goods, textiles and shoemaking. One academic described it 0:03:32.240 --> 0:03:34.600 to US as China Shock two point zero. 0:03:34.840 --> 0:03:36.320 I'm ewine pots Bimberg radio. 0:03:36.800 --> 0:03:38.960 Now, the Bank of England is expected to leave the 0:03:39.000 --> 0:03:42.800 benchmark interest rate on hold later today, markets and economists 0:03:42.840 --> 0:03:46.160 being leave. The Monetary Policy Committee will hold borrowing costs 0:03:46.160 --> 0:03:49.520 at four and a half percent, while reiterating a cautious 0:03:49.560 --> 0:03:53.240 approach to further cards. Speaking earlier this month, the Governor 0:03:53.280 --> 0:03:56.720 Andrew Bailey said that although the impact of trade tarifs 0:03:56.880 --> 0:04:00.800 on inflation can be ambiguous, in his words, he did 0:04:00.960 --> 0:04:04.440 wol the risks to the UK economy from Trump's tariff 0:04:04.480 --> 0:04:06.480 war quote are substantial. 0:04:06.720 --> 0:04:10.480 President Vladimir Zelenski is back to US proposal for Ukraine 0:04:10.560 --> 0:04:14.680 and Russia to stop strikes on energy infrastructure. The Ukrainian 0:04:14.760 --> 0:04:17.720 leader told US President Donald Trump it would be one 0:04:17.760 --> 0:04:21.000 of the first steps to fully ending the war. White 0:04:21.000 --> 0:04:24.040 As Press Secretary KARLN. Levitt says the call helped move 0:04:24.080 --> 0:04:25.280 towards ending the war. 0:04:25.960 --> 0:04:29.480 The two leaders also agreed on a partial ceasefire against energy. 0:04:29.920 --> 0:04:32.599 Technical teams will meet in Saudi Arabia in the coming 0:04:32.680 --> 0:04:35.520 days to discuss broadening the ceasefire to the Black Sea 0:04:36.120 --> 0:04:39.200 on the way to a full ceasefire. They agreed this 0:04:39.240 --> 0:04:41.039 could be the first step toward the full end of 0:04:41.040 --> 0:04:42.720 the war in ensuring security. 0:04:43.400 --> 0:04:47.599 Levitt also described the conversation with Zelensky as fantastic, and 0:04:47.680 --> 0:04:51.560 a US aid described a previous call with Putin as epic. 0:04:52.080 --> 0:04:55.200 Two weeks ago, the US temporarily cut off Ukraine's military 0:04:55.240 --> 0:04:59.160 aid and intelligence sharing, but promised fresh support after President's 0:04:59.160 --> 0:05:02.279 Trump and Zelenski spoke. Meanwhile, EU leaders are meeting in 0:05:02.279 --> 0:05:05.719 Brussels today to discussed ramping up their defense capabilities. While 0:05:05.720 --> 0:05:08.279 that U has publicly welcomed US efforts to push for 0:05:08.320 --> 0:05:11.320 a peace steal, leaders have become increasingly alarmed about being 0:05:11.400 --> 0:05:13.719 kept out of Trump's dealings with the Kremlin. 0:05:14.680 --> 0:05:19.920 The next generation of uk nuclear submarines starts construction today 0:05:20.040 --> 0:05:22.880 as concerns grow about the country's reliance on America for 0:05:23.040 --> 0:05:25.839 its defense. Pime Minister Kis Starmer is a tending a 0:05:25.960 --> 0:05:30.120 ceremony to mark the work starting on a new Dreadnought 0:05:30.200 --> 0:05:33.479 class submarine. James Walcock has more now. 0:05:33.920 --> 0:05:37.840 Britain's nuclear submarines are emblematic of the country's defense debate. 0:05:38.240 --> 0:05:41.679 Despite being the country's ultimate nuclear deterrant, all four subs 0:05:41.720 --> 0:05:44.720 are active beyond their twenty five year service life and 0:05:44.760 --> 0:05:48.159 rely on America for maintenance. Kiss Arm's rare visit is 0:05:48.200 --> 0:05:50.600 a way to highlight the public the need to improve 0:05:50.680 --> 0:05:54.360 the country's defenses, but the next generation will be debated too. 0:05:54.960 --> 0:05:59.279 It's Britain's most expensive military procurement program, costing an estimated 0:05:59.360 --> 0:06:02.880 thirty six billion pounds. That's six years worth of the 0:06:02.920 --> 0:06:06.760 government's welfare cuts announced earlier this week in London, James 0:06:06.800 --> 0:06:08.360 Wilcock the Radio. 0:06:08.800 --> 0:06:12.720 And Finland's unbroken streak as the world's happiest country has 0:06:12.760 --> 0:06:15.920 continued for an eighth year, with the UK in twenty 0:06:16.040 --> 0:06:18.919 third place in the global ranking. The US came in 0:06:18.960 --> 0:06:22.440 at twenty fourth for happiness, its lowest ever level. The 0:06:22.440 --> 0:06:25.120 study by the Well Being Research Center the University of 0:06:25.120 --> 0:06:27.080 Oxford is based on a three year average of a 0:06:27.120 --> 0:06:31.960 population's self assessment of its quality of life. Researchers found 0:06:32.000 --> 0:06:34.440 that belief in the kindness of others is much more 0:06:34.480 --> 0:06:39.000 closely tied to happiness than previously thought. Denmark, Iceland, Sweden 0:06:39.040 --> 0:06:41.280 and the Netherlands rounded out the top five. 0:06:41.960 --> 0:06:44.760 And those are your top stories this morning. Now, let's 0:06:44.800 --> 0:06:47.320 look at the markets. US DOT futures are up, so 0:06:47.360 --> 0:06:50.080 perhaps a little bit happier after FED chared your own 0:06:50.120 --> 0:06:55.560 power reassured them in terms of the fears over tariffs, although, 0:06:55.600 --> 0:06:58.919 of course President Trump talking about his view that the 0:06:58.960 --> 0:07:01.760 FED would be much better cutting interest rates. That doesn't 0:07:01.800 --> 0:07:04.080 really seem to have landed with investors, will it at 0:07:04.080 --> 0:07:08.560 some point? Tenny US treasury yields of flat four twenty four? Though, 0:07:08.600 --> 0:07:11.280 remember that Japanese markets are closed for holiday today. The 0:07:11.320 --> 0:07:15.720 Bloomberg dollar spotl in Leggs is slightly stronger this morning, 0:07:15.840 --> 0:07:20.520 the Japanese yen extending Wednesday's recovery, gold hitting a fresh 0:07:20.640 --> 0:07:23.480 record high this morning. The Euro trades at one sport 0:07:23.560 --> 0:07:26.800 zero eight nine eight, so slightly softer right now. That 0:07:26.920 --> 0:07:28.280 is a look at the markets. 0:07:27.960 --> 0:07:29.160 And a moment to bring in more and her. 0:07:29.200 --> 0:07:32.240 Trump's tariffs are pushing Chinese exports into other markets. 0:07:32.280 --> 0:07:33.600 Plus how wealthy people. 0:07:33.360 --> 0:07:36.600 In the UK are developing new strategies to avoid paying 0:07:36.680 --> 0:07:40.440 inheritance tax. But in the story that colt right this morning, 0:07:41.120 --> 0:07:43.360 a bottle of whiskey a very rare bottle of whiskey 0:07:43.920 --> 0:07:46.800 in cased in what looks like concrete to try and 0:07:46.840 --> 0:07:50.760 add to its rarity value. Have we reached peak collector whiskey? 0:07:51.200 --> 0:07:55.720 Possibly yes, because the whole idea of this Scottish distiller, 0:07:55.800 --> 0:08:01.560 Glen Rothis releasing its oldest and rare single mold is 0:08:01.600 --> 0:08:04.000 that it's meant to be drunk. You're meant to smash 0:08:04.000 --> 0:08:07.360 the bottle because apparently you know, once you smash the 0:08:07.360 --> 0:08:10.160 bottle then you can't resell it, or the casing around 0:08:10.200 --> 0:08:12.320 the bottle you can't then resell the bottle because its 0:08:12.320 --> 0:08:14.640 almost like selling the bottle without the casing. 0:08:14.680 --> 0:08:16.840 So the extent to which they've gone with this, so 0:08:16.840 --> 0:08:19.840 our writer Brad Jaffi has tasted the whiskey unless you 0:08:19.920 --> 0:08:20.720 read his description. 0:08:20.840 --> 0:08:22.400 But the bottom line is it's good. 0:08:23.520 --> 0:08:26.040 But the ideas you can so you can break the packaging, 0:08:26.120 --> 0:08:28.360 then you can send it back to the distillery, who 0:08:28.440 --> 0:08:31.920 will get a sugi artist to reassemble the column, filling 0:08:31.960 --> 0:08:35.720 in the cracks using gold in according with the Japanese 0:08:35.760 --> 0:08:38.400 practice as well as there's a whole collector's element this, 0:08:38.559 --> 0:08:40.880 but it's a very interesting dilemma because unlike other high 0:08:41.000 --> 0:08:44.200 end collectibles of course it is a consumable good, so 0:08:44.280 --> 0:08:46.000 you have to make the decision as to whether you're 0:08:46.040 --> 0:08:48.280 you know, keeping the action figure and its packaging or 0:08:48.320 --> 0:08:49.840 you're taking it out and playing with it. 0:08:49.960 --> 0:08:50.400 Essentially. 0:08:51.040 --> 0:08:53.640 Yeah, it's such a nice story anyway, once to think 0:08:53.679 --> 0:08:56.000 about it, I might be smashing the bottle maybe later 0:08:56.240 --> 0:08:58.600 for hot Toddy if anyone can hear my little bit 0:08:58.640 --> 0:08:59.640 of a cult this morning. 0:09:00.120 --> 0:09:02.160 That's bringing more there on our top story this morning 0:09:02.320 --> 0:09:06.000 and the latest on the trade tariffs, but our reporting 0:09:06.080 --> 0:09:09.960 looking at how President Trump's determination to rebalance the US's 0:09:10.000 --> 0:09:14.000 trade relationship with Beijing is pushing Chinese manufacturers and exporters 0:09:14.000 --> 0:09:16.880 to look for alternative markets. It's on leading a new 0:09:17.040 --> 0:09:19.360 China shock on the rest of the world, with job 0:09:19.400 --> 0:09:23.080 losses and economic devastation in Indonesia and other emerging markets. 0:09:23.240 --> 0:09:25.760 Let's bring in our Asia Economics reporter Katie Dimitrieva for 0:09:25.840 --> 0:09:29.160 more on this story. Kat Indonesia is your case study 0:09:29.200 --> 0:09:32.480 in this reporting. What's happened to jobs and the textile 0:09:32.480 --> 0:09:33.199 industry there. 0:09:34.240 --> 0:09:38.120 Well, it's pretty grim, especially in the past year in Indonesia, 0:09:39.040 --> 0:09:42.679 because there has been such a fast pace of layoffs, 0:09:43.120 --> 0:09:46.600 like particularly in textiles and shoes elsewhere as well and 0:09:46.640 --> 0:09:49.880 in other emerging markets, but Indonesia's really being felt there 0:09:49.960 --> 0:09:53.960 and a large reason for that. People there are blaming 0:09:54.000 --> 0:09:57.800 and workers and industry groups are blaming China and cheap 0:09:57.880 --> 0:10:02.040 Chinese imports. And we've seen other other countries in the 0:10:02.080 --> 0:10:05.680 region reacting to that as well by putting in taxes 0:10:05.720 --> 0:10:08.840 against companies like Tamu and she and because a lot 0:10:08.880 --> 0:10:10.360 of the goods are coming in that way, a lot 0:10:10.360 --> 0:10:12.240 of the clothing is coming in that way, and these 0:10:12.280 --> 0:10:16.679 small packages. But essentially what's happening is very similar to 0:10:16.720 --> 0:10:19.480 what we saw in the US rust belt right in 0:10:19.520 --> 0:10:23.280 the nineties and early two thousands when China first came 0:10:23.280 --> 0:10:26.560 onto the scene in global trade. We saw a lot 0:10:26.600 --> 0:10:29.439 of lost jobs two point four million in the US. 0:10:29.480 --> 0:10:33.559 And while those numbers are not as high in Indonesia, 0:10:33.600 --> 0:10:38.439 of course, smaller population, they are much faster. The job 0:10:38.480 --> 0:10:40.520 loss is happening at a much faster pace. 0:10:41.160 --> 0:10:44.199 Yeah, But of course child is trade surface hashitted all 0:10:44.400 --> 0:10:47.280 time high, and so the goods that child is muddy. 0:10:47.320 --> 0:10:50.160 Factually they have to go somewhere. Who else is being affected? 0:10:51.200 --> 0:10:55.400 Yeah, In twenty twenty four, hitting nearly trillion dollars and 0:10:55.480 --> 0:10:58.679 so Indonesia's one of them. A Southeast Asia in particular 0:10:58.920 --> 0:11:03.480 is interesting because these countries are I mean, they're certainly 0:11:03.559 --> 0:11:08.360 geographically close to China, but geopolitically speaking historically are very close, 0:11:08.360 --> 0:11:10.600 and they rely on China for a lot of foreign 0:11:10.600 --> 0:11:14.680 direct investment, building of infrastructure, roads, things of that nature. 0:11:14.800 --> 0:11:19.439 And so to have these countries facing as challenges most 0:11:19.480 --> 0:11:22.800 recently very it stands out right, But there's also Brazil, 0:11:23.400 --> 0:11:26.719 there's Mexico, and President Schinbaum there is doing a lot 0:11:26.800 --> 0:11:30.200 right now to try to limit again these cheaper goods 0:11:30.200 --> 0:11:33.199 from entering. And again that's you know, clothing, its shoes, 0:11:33.320 --> 0:11:36.520 it's steel, but it's also components and kind of these 0:11:36.559 --> 0:11:40.880 smaller parts that go into big machines and manufacturers that 0:11:40.920 --> 0:11:44.840 manufacturers use, and is you know, having the dual effect 0:11:44.880 --> 0:11:48.200 of both hitting demand in the domestic economy, so people 0:11:48.240 --> 0:11:53.120 are buying these cheap Chinese goods domestically, but also competing 0:11:53.120 --> 0:11:57.760 internationally is just that much harder when you're competing with China. 0:11:57.880 --> 0:12:00.120 How much leverage do these countries have to act to 0:12:00.200 --> 0:12:02.640 be able to push back against China. I mean, they 0:12:02.640 --> 0:12:05.240 don't have the same economic haft as the US. 0:12:05.840 --> 0:12:09.640 Yeah, it's and this is what makes this shock quite different, right, 0:12:10.000 --> 0:12:12.000 the shock two point zero or three point zero is 0:12:12.040 --> 0:12:14.840 quite different in that a lot of these economies can't 0:12:14.840 --> 0:12:17.520 really push back. You know, they have industries coming to them, 0:12:17.679 --> 0:12:20.280 and a lot of the folks profiled in our story 0:12:20.320 --> 0:12:22.640 are going directly to their industry groups. For are going 0:12:22.679 --> 0:12:25.439 directly to the government and commerce and trade and saying 0:12:25.920 --> 0:12:29.000 we need to put in tariffs or something to stop this, 0:12:29.080 --> 0:12:31.560 and you're seeing some of that. There's some investigations and 0:12:31.600 --> 0:12:35.800 to steal dumping. There are some tariffs on small packages 0:12:36.000 --> 0:12:39.000 or like a value added tax, but they're really limited 0:12:39.040 --> 0:12:42.400 because if they take too strong of a stance, well, 0:12:42.480 --> 0:12:46.040 there goes your foreign direct investment, there goes your relationship 0:12:46.120 --> 0:12:49.600 and certainly your geopolitical ties, which is something that countries 0:12:49.640 --> 0:12:52.200 would be concerned about. So they're really between a rock 0:12:52.280 --> 0:12:53.000 and a hard place. 0:12:53.760 --> 0:12:56.200 Gotta thank you so much for being with us this morning. 0:12:56.400 --> 0:12:59.720 All Asia economics will pull to Catty Dmitrievia and you 0:12:59.760 --> 0:13:03.920 can read that story in full. Trump's tariffs on Lesha, 0:13:04.040 --> 0:13:06.440 New China, shock on the rest of the world in 0:13:06.480 --> 0:13:07.920 depth reporting. 0:13:07.840 --> 0:13:10.280 Study carried out by AJ Bell in twenty twenty two 0:13:10.320 --> 0:13:13.600 found a significant investment gap between men and women in 0:13:13.640 --> 0:13:16.000 the UK of as much as one point sixty five 0:13:16.120 --> 0:13:19.360 trillion pounds. How much could addressing that help to boost 0:13:19.400 --> 0:13:21.800 the UK investment landscape? In a bid to close the gap, 0:13:21.880 --> 0:13:26.240 former Goldman Sachs executive Isiho Fori founded Propelled, the UK's 0:13:26.280 --> 0:13:28.600 first female focused investment platform. 0:13:28.679 --> 0:13:29.520 For a work, isshow has. 0:13:29.480 --> 0:13:32.120 Been shortlisted for both Kliko's Bold Future Award and she's 0:13:32.160 --> 0:13:34.920 with us in studio now for more. Isha, Good morning 0:13:34.960 --> 0:13:38.720 to you. What is the background to the issue here? 0:13:38.800 --> 0:13:40.880 Why are women in the UK investing less than men? 0:13:41.320 --> 0:13:44.240 There are a few reasons. One of them, i'd say, Well, 0:13:44.240 --> 0:13:47.559 the main one is that women lack confidence, or i'd 0:13:47.559 --> 0:13:51.040 say it's perceived confidence. Often when you ask them lots 0:13:51.080 --> 0:13:53.360 of questions and things like this, they do actually know 0:13:53.520 --> 0:13:56.920 more about investing than they think. However, they don't act 0:13:56.960 --> 0:13:58.920 on it because they think that they need to know 0:13:59.000 --> 0:14:00.760 more or they need an next expert to sort of 0:14:00.760 --> 0:14:04.120 guide them, so they inevitably tend to be savers rather 0:14:04.160 --> 0:14:04.920 than investors. 0:14:05.080 --> 0:14:07.520 Okay, isn't this also part of the gender pay gap 0:14:07.679 --> 0:14:11.640 and the fact that women often work slightly fewer hours, 0:14:11.720 --> 0:14:14.800 fewer years on average over the course of their working lives. 0:14:14.800 --> 0:14:16.840 So that is part of it, but not all of 0:14:16.840 --> 0:14:18.880 the story. It's a number of things. So the pay 0:14:18.880 --> 0:14:21.200 gap obviously is one of them. Women are the ones 0:14:21.200 --> 0:14:23.320 who have children and tend to be the careers, so 0:14:23.400 --> 0:14:26.680 take time out. Women also tend to be the careers 0:14:26.720 --> 0:14:31.600 for relatives, parents, and then women also are affected quite 0:14:31.640 --> 0:14:34.080 a lot during menopause and take time out again. So 0:14:34.120 --> 0:14:36.440 when you add all of these things together on top 0:14:36.480 --> 0:14:39.400 of the fact that women live longer and that they're 0:14:39.440 --> 0:14:42.640 saving rather than investing, it all sort of contributes to 0:14:42.640 --> 0:14:43.600 the problem. 0:14:43.760 --> 0:14:47.840 So there's huge untapped potential here as well to boost 0:14:47.880 --> 0:14:51.400 both investment and individual wealth. How do you tackle it? 0:14:52.200 --> 0:14:55.240 So for us, it was really about trying to understand 0:14:56.200 --> 0:14:58.800 the psychology of women when it comes to money in investing, 0:14:58.840 --> 0:15:01.120 but also what are the those hurdles that have been 0:15:01.200 --> 0:15:04.240 holding women back and how can we put those into 0:15:04.240 --> 0:15:08.880 a platform that's accessible to the masses and enable women 0:15:08.920 --> 0:15:12.520 to really feel comfortable and confident when they start investing. 0:15:13.160 --> 0:15:15.680 That's the only way to sort of shift the behavior 0:15:15.760 --> 0:15:17.800 from saving more towards investing. 0:15:18.480 --> 0:15:23.160 Are you concerned that perhaps initiative like initiatives like yours 0:15:24.120 --> 0:15:26.720 might suffer some pushback as we see a rollback of 0:15:26.760 --> 0:15:29.280 diversity actually an inclusion in the United States and that 0:15:29.400 --> 0:15:32.760 focus on women. Do you think that that perhaps will 0:15:32.800 --> 0:15:34.400 affect what happens here in the UK. 0:15:34.720 --> 0:15:37.360 I think absolutely. One of the ways that we reach 0:15:37.440 --> 0:15:41.480 women is working with corporates, and we've already started to 0:15:41.480 --> 0:15:45.000 see a shift. But it's really interesting the individuals within 0:15:45.080 --> 0:15:47.520 those companies, particularly in the UK, are sort of like, 0:15:47.600 --> 0:15:50.480 we still love what you're doing, we still want to help. However, 0:15:51.800 --> 0:15:54.760 you know, money and funding and sort of departments are 0:15:54.800 --> 0:15:57.920 being shut down. That said, they still recognize the need 0:15:58.240 --> 0:16:01.080 and so they are still trying to see how we 0:16:01.120 --> 0:16:04.160 can continue to work together. But I've never been afraid 0:16:04.200 --> 0:16:06.440 of sort of having that pushback. Even when I first 0:16:06.480 --> 0:16:08.440 had the idea, a lot of people told me I 0:16:08.520 --> 0:16:11.160 was insane and if women weren't investing, they didn't want to. 0:16:11.800 --> 0:16:16.680 Well, investing in female lab businesses is a broaderish as well, 0:16:16.720 --> 0:16:19.400 one being highlighted this morning by Hannah Bernard, the co 0:16:19.520 --> 0:16:22.400 chair of the invest In Women Task Force in the 0:16:22.520 --> 0:16:25.760 UK as well, writing in the Financial Times, what is 0:16:25.840 --> 0:16:29.080 the issue and is it getting worse? I mean, I 0:16:29.120 --> 0:16:31.160 wonder what your own experience was even getting investment for 0:16:31.160 --> 0:16:31.880 your own company. 0:16:32.480 --> 0:16:34.880 I use the word horrendous, and I don't use it lightly. 0:16:36.240 --> 0:16:38.600 I perhaps was a bit naive and thought that it 0:16:38.600 --> 0:16:41.600 wouldn't be so challenging for me. I know the statistics 0:16:42.040 --> 0:16:44.480 around women, but also it's even worse for black women. 0:16:44.600 --> 0:16:46.960 But I sort of said to myself, I have a 0:16:47.160 --> 0:16:49.640 master's degree in physics from Imperial, I worked at Morgan 0:16:49.720 --> 0:16:52.560 Stanley Goldman Sachs. I've got an MBA from London Business School. 0:16:52.680 --> 0:16:55.960 Surely those things count for something. But it was still 0:16:55.960 --> 0:17:01.560 incredibly difficult, and inevitably. What I found is that a 0:17:01.560 --> 0:17:03.960 lot of the investors are men. They're the ones that 0:17:04.040 --> 0:17:07.840 tend to have money that they're looking to invest in 0:17:07.880 --> 0:17:12.440 these types of businesses. And I guess it's partly they 0:17:12.440 --> 0:17:15.840 didn't understand the story or the need as to why 0:17:15.880 --> 0:17:19.840 women need additional resources or an investment platform for women. 0:17:20.040 --> 0:17:22.639 But I also think it's just inherent biases as well. 0:17:23.480 --> 0:17:25.479 But the way that I got around it is, you know, 0:17:25.680 --> 0:17:28.720 over seventy percent of my investors are women, because they 0:17:28.880 --> 0:17:31.440 just naturally understood what we were doing and were also 0:17:31.560 --> 0:17:34.679 prepared to invest in a business run by a woman. 0:17:34.920 --> 0:17:39.560 Okay, how is propelled doing as a platform? I you know, 0:17:39.640 --> 0:17:43.680 I'm very interested in this subject because on the one hand, 0:17:43.720 --> 0:17:46.560 you've got you know, like Hannah Bernard and Debbie Wosco 0:17:46.640 --> 0:17:49.520 who are leading the government, backed back by Rachel Reed's 0:17:49.560 --> 0:17:53.679 sort of personally the Invested Women's Task Force focus on women. Okay, 0:17:53.800 --> 0:17:58.800 investing in female led businesses is going down, but nonetheless 0:17:58.800 --> 0:18:01.600 they're you know, the they're making that case. And on 0:18:01.640 --> 0:18:05.159 the other hand, a lot of kind of female led 0:18:05.320 --> 0:18:09.440 clubs in London, for example, trying to build networking bridges. 0:18:09.640 --> 0:18:13.000 Those have shut down recently, so it's really a very 0:18:13.000 --> 0:18:16.040 difficult space. How are you going to manage this and 0:18:16.119 --> 0:18:18.760 navigate this when it comes to propel itself and building 0:18:18.760 --> 0:18:19.440 that business. 0:18:19.560 --> 0:18:22.240 So I think a lot of resilience, I say, is 0:18:22.280 --> 0:18:26.480 the first thing. But when you speak to women, what 0:18:26.560 --> 0:18:28.840 I found is they actually do want to invest. We're 0:18:28.840 --> 0:18:31.320 also going through something called the Great Wealth Transfer, so 0:18:31.359 --> 0:18:34.520 women are amassing wealth and accelerating rate. I think it's 0:18:34.520 --> 0:18:37.359 actually this year that the statistics say that sixty percent 0:18:37.400 --> 0:18:39.399 of UK wealth is going to be controlled by women. 0:18:39.760 --> 0:18:42.160 So women are getting more and more wealth. And when 0:18:42.200 --> 0:18:44.480 you do actually speak to them they want to invest, 0:18:44.920 --> 0:18:48.040 So for me, it's more about finding them. How do 0:18:48.119 --> 0:18:50.040 we reach them? And we do that, as I said, 0:18:50.040 --> 0:18:54.040 through companies, through organizations, but actually we've grown massively just 0:18:54.119 --> 0:18:57.040 by word of mouth, referrals and social media. 0:18:57.080 --> 0:18:59.280 Are you worried though, with as you described it, how 0:18:59.320 --> 0:19:02.359 companies are real orientating their approach to efforts like this, 0:19:02.480 --> 0:19:05.200 that that funnel for you gets cut. 0:19:05.000 --> 0:19:09.480 Off, I think in a sense of potentially companies paying 0:19:09.520 --> 0:19:12.320 for some of the services we provide. Yes, but we 0:19:12.400 --> 0:19:14.760 can still go into these companies and engage with their 0:19:14.760 --> 0:19:16.800 women's networks and things like this, and that has been 0:19:16.840 --> 0:19:19.240 incredibly fruitful for us, so, as I said, some. 0:19:19.240 --> 0:19:23.080 More informal connections necessarily than perhaps the former ones funneled 0:19:23.080 --> 0:19:24.880 through companies exactly exactly. 0:19:24.960 --> 0:19:28.720 So maybe the company can't formally engage in the same 0:19:28.760 --> 0:19:32.159 way anymore, but the individuals in these companies absolutely do, 0:19:32.320 --> 0:19:33.720 so those doors are still open. 0:19:34.280 --> 0:19:36.840 Here in the UK, major changes to inheritance tax by 0:19:36.880 --> 0:19:40.480 the Labor Government means more wealthy Britains are embracing creative 0:19:40.560 --> 0:19:45.280 tactics to protect and pass on wealth, especially businesses, farmland 0:19:45.359 --> 0:19:48.119 and pensions. Joining us out to discuss Boinberg's Personal Finance 0:19:48.119 --> 0:19:51.239 and wealth reporter Alice Cantor Alice, good morning. Remind us, 0:19:51.240 --> 0:19:53.240 first of all, what has the government changed when it 0:19:53.240 --> 0:19:54.359 comes to inheritance tax. 0:19:54.520 --> 0:19:57.160 The government has overhauled the tax system so that from 0:19:57.280 --> 0:20:00.680 next year, in the year after pensions, business in Farmland, 0:20:00.680 --> 0:20:02.720 they'll all be including a person's estate. 0:20:03.119 --> 0:20:03.680 And what that. 0:20:03.640 --> 0:20:06.720 Means is that when in the past people could pass 0:20:06.720 --> 0:20:09.720 on their pension and businesses mostly tax free, now they'll 0:20:09.720 --> 0:20:13.120 be tax at maybe twenty percent, sometimes even forty percent. 0:20:13.960 --> 0:20:16.280 So what are the strategies so that people are thinking 0:20:16.320 --> 0:20:20.119 about or employing to basically pass on that wealth, all 0:20:20.200 --> 0:20:24.359 that business and try to find a creative way around this. 0:20:25.000 --> 0:20:28.440 Yes, so people are drawing down on them sorry, they're 0:20:28.480 --> 0:20:31.639 drawing down on their pensions. They're gifting more money to 0:20:31.720 --> 0:20:36.159 family members and sooner as well. They're establishing trusts, Some 0:20:36.240 --> 0:20:40.760 are taking out costly life insurance policies. They're considering selling 0:20:40.800 --> 0:20:45.119 their businesses. They're considering setting up savings accounts for their kids, 0:20:45.320 --> 0:20:48.320 even leaving the country in some cases just to avoid 0:20:48.640 --> 0:20:51.199 paying the levey, to avoid putting all that pressure on 0:20:51.240 --> 0:20:52.159 their children when. 0:20:52.040 --> 0:20:52.560 They pass on. 0:20:53.320 --> 0:20:55.920 Are they downsides to these strategies Alice, What are the 0:20:55.960 --> 0:20:59.160 people that you spoke to most concerned about or perhaps 0:20:59.200 --> 0:21:02.840 complaining about them most so most wealth advisors. 0:21:02.840 --> 0:21:04.880 They say that no matter the strategies that you put 0:21:04.920 --> 0:21:08.000 in place, the reality is that this tax is going 0:21:08.040 --> 0:21:10.239 to hurt because there's only so much money that you 0:21:10.280 --> 0:21:13.800 can draw on from your pension spot without being taxed 0:21:13.840 --> 0:21:15.840