WEBVTT - HPE Earnings Recap, Wells Fargo Money Study Results

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News.

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<v Speaker 2>You're listening to Bloomberg Business Week with Carol mess Here

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<v Speaker 2>and Tim Steneveek on Bloomberg Radio.

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<v Speaker 1>All Right.

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<v Speaker 3>From New York Community Bank to HPE, we go.

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<v Speaker 4>Yeah.

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<v Speaker 2>Shares down about four point two percent in the after

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<v Speaker 2>hours this after the company reduced its outlook for sales

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<v Speaker 2>growth and profit in the current fiscal year, citing lower

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<v Speaker 2>demand for networking products and a crunch in computer chip availability.

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<v Speaker 2>We got with us Crawford del Pratt, president of IDC,

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<v Speaker 2>and he caught up with the HP CEO right after

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<v Speaker 2>the results. Crawford, good to have you with us, joining

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<v Speaker 2>us from Massachusetts this afternoon. First of all, your thoughts

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<v Speaker 2>on the quarter and on the company reducing its outlook

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<v Speaker 2>for sales growth for the fiscal year, and also what

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<v Speaker 2>did you hear from Antonio Nari?

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<v Speaker 4>Yeah, absolutely, Carrollton, great to talk to you guys again.

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<v Speaker 4>So when you look at HP, I think that the

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<v Speaker 4>first thing you have to think about out is that

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<v Speaker 4>this isn't the old HPE that we've kind of known.

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<v Speaker 4>This company has been going after the networking space and

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<v Speaker 4>has really been succeeding in the networking space for a

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<v Speaker 4>number of quarters, and if you look at where they

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<v Speaker 4>were over the last at six quarters, they were growing

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<v Speaker 4>their networking business, which is primarily a company they bought

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<v Speaker 4>a number of years ago called a Ruba Networks, which

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<v Speaker 4>is sort of campus networking and networking out of the

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<v Speaker 4>edge of the network. That was growing an excess of

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<v Speaker 4>thirty percent. And so like we saw at Cisco, you've

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<v Speaker 4>seen that we've pushed a lot of product out to customers,

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<v Speaker 4>and customers have said, you know, we're going to take

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<v Speaker 4>a pause here, and so they've taken a pause, and

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<v Speaker 4>HP saw, you know, their networking business. They're what they

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<v Speaker 4>call their intelligent edge business, which is the majority of

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<v Speaker 4>the Erican business, up about only three percent, which compares

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<v Speaker 4>with the thirty percent kind of range. So you know,

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<v Speaker 4>that's kind of this one big part of the story

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<v Speaker 4>here is that the intelligent edges dropped down. The other

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<v Speaker 4>part of the story is that obviously from a from

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<v Speaker 4>a total growth standpoint, the company didn't even deliver on

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<v Speaker 4>the low end of their of their range. So they

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<v Speaker 4>were they were down fourteen percent, and that was fueled

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<v Speaker 4>by what I would say was, you know, weakness in

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<v Speaker 4>sort of that that core server space which was down

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<v Speaker 4>about twenty three percent in terms of total revenue. And

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<v Speaker 4>so what I what I heard from Antonio, you know,

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<v Speaker 4>understandably is that they've taken a tremendous amount of cost

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<v Speaker 4>out of this business. And so from a margin standpoint,

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<v Speaker 4>I think that you know, from a defensive standpoint, they've

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<v Speaker 4>they've they've made a lot of progress, and that's really

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<v Speaker 4>what they did was to hedge against the cyclical nature

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<v Speaker 4>of the business, also hedging against the cynical nature of

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<v Speaker 4>the business. And rightly so, you know, they've seen forty

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<v Speaker 4>one percent in their arr growth. So people think of

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<v Speaker 4>HP as a gear company, but really they've got a

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<v Speaker 4>platform for them to sell as a service gear as

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<v Speaker 4>well as services around that year and that business continues

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<v Speaker 4>to grow and over time, as we have seen, will

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<v Speaker 4>continue to see that deferred revenue a crew to HP's

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<v Speaker 4>revenue stream. So you know, again it was a mixed quarter,

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<v Speaker 4>definitely a pause on the part of a core part

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<v Speaker 4>of their business that have been fueling growth.

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<v Speaker 5>And you know, I think that this is where they're

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<v Speaker 5>playing a little bit of defense.

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<v Speaker 3>You talking with Antonio and Nery the CEO, and I

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<v Speaker 3>guess our folks did too, and saying that downward revision

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<v Speaker 3>in terms of the outlook is due primarily to that

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<v Speaker 3>slow down on the networking market and a lack of

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<v Speaker 3>availability of graphics processor units required to deliver high powered servers,

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<v Speaker 3>telling all of us those we're talking about GPUs right,

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<v Speaker 3>and he did say it looks like should improve in

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<v Speaker 3>the second half of the year. The networking market is

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<v Speaker 3>poised to recover in fiscal twenty twenty five. He said,

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<v Speaker 3>I mean, what was top of mind for you as

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<v Speaker 3>you talked with him Crawford about.

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<v Speaker 4>Yeah, so as they talked to top of mind for

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<v Speaker 4>me is yeah, thanks Carol. So top of mind was,

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<v Speaker 4>you know, sort of why is it that when? When

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<v Speaker 4>do we expect GPUs to get better? And and and

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<v Speaker 4>and what they've seen is a significant amount of of

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<v Speaker 4>of of bookings. I think they have, you know, a

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<v Speaker 4>significant amount of AI bookings uh in the quarter. I

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<v Speaker 4>think they're going to be working down a set of

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<v Speaker 4>AI bookings as UH they get I think with something

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<v Speaker 4>a number somewhere around three billion that they're going to

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<v Speaker 4>be working down for customer commitments that that they already

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<v Speaker 4>have UH in place. And so you know, I think

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<v Speaker 4>what you're seeing is similar to a lot of companies

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<v Speaker 4>in that we are seeing a massive infrastructure upgrade within

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<v Speaker 4>customer sets and it's really about who can get availability,

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<v Speaker 4>who's got the scale. And I think that ended up being,

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<v Speaker 4>you know, one difficulty point for HP in the quarter

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<v Speaker 4>in that you know, the availability just isn't there. But

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<v Speaker 4>I think that you know, we saw announcements from Intel,

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<v Speaker 4>We've seen announcements from a m D. I think we're

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<v Speaker 4>good want to see a significant availability in the second

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<v Speaker 4>half of the year, and that I think is going

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<v Speaker 4>to fuel a sustained set of growth and and Antonio

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<v Speaker 4>talked about that for the infrastructure space as we get

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<v Speaker 4>into the later part of the year, and I think

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<v Speaker 4>i DC's numbers reflect that we expect the server and

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<v Speaker 4>storage market to deliver somewhere between six to eight percent

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<v Speaker 4>growth this year, and that's gonna be fueled on AI.

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<v Speaker 2>Well, that's what That's exactly what I want to talk about, Crawford,

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<v Speaker 2>was HPE's exposure to AI. And I'm wondering this from

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<v Speaker 2>the perspective of, Okay, we know that IT spend is

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<v Speaker 2>going up this year, and I know there's a lot

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<v Speaker 2>of talk of a lot of that spend going toward

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<v Speaker 2>companies like Nvidia, companies like super Micro to what extent

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<v Speaker 2>is HPE of beneficiary of the run up in AI.

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<v Speaker 5>Oh, they're they're a massive beneficiary. And they're they're they're a.

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<v Speaker 4>Massive beneficiary by the way, as our Dell and and

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<v Speaker 4>and and and as is you know companies like Lenovo,

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<v Speaker 4>other infrastructure companies. HP IS. HPE is a little bit different,

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<v Speaker 4>and they're different because of the bets that they've made

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<v Speaker 4>around the network.

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<v Speaker 5>And the edge.

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<v Speaker 4>So they are going to be able to provide devices

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<v Speaker 4>that are going to be processing at the core, which

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<v Speaker 4>is their core server business. And don't forget these guys

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<v Speaker 4>have a very very large footprint in supercomputers, which is

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<v Speaker 4>going to be another area of AI growth and AI

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<v Speaker 4>investment going forward as well at the edge, where I

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<v Speaker 4>think we're going to see more what they call inferencing

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<v Speaker 4>at the edge, being able to process at the edge

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<v Speaker 4>in order to make decisions very very quickly on your data.

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<v Speaker 4>They're going to do that through Aruba, and they're going

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<v Speaker 4>to do that through an acquisition that they just made

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<v Speaker 4>with it that they've announced, which is Juniper Networks as well.

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<v Speaker 4>They're going to be able to benefit from what I

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<v Speaker 4>would say is the need for more ports because of AI. Right, So,

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<v Speaker 4>as AI continues to proliferate, you're going to need to

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<v Speaker 4>move more network. You need to move more data across

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<v Speaker 4>the network, which means you're going to need more advanced

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<v Speaker 4>switching technology. And that's where their Juniper acquisition is going

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<v Speaker 4>to come in. So you need to think of it

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<v Speaker 4>as opening up the interstate highway, right, to open up

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<v Speaker 4>the Interstate Highway, and HP is going to benefit from

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<v Speaker 4>that as they close the Juniper deal. From those three

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<v Speaker 4>to poor edge and network.

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<v Speaker 3>Hey, listen real quickly. Because Dell came out, it stock

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<v Speaker 3>is taking off big time in the aftermarket. They've reported

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<v Speaker 3>better than expected sales, the top estimates on AI server excitement.

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<v Speaker 3>How do you contrast what we're hearing with Dell versus

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<v Speaker 3>what we're kind of hearing kind of on the HPE

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<v Speaker 3>side And just got about twenty seconds.

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<v Speaker 5>Yeah, So I think a couple of things. A.

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<v Speaker 4>I think that Dell had probably better availability and was

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<v Speaker 4>able to get better sell through on GPUs, which again

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<v Speaker 4>you know late breaking news here. The other is Dell

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<v Speaker 4>doesn't have the same level exposure to the networking market,

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<v Speaker 4>which is what we kind of just talked about, so

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<v Speaker 4>Dell's able to really benefit if they can get them

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<v Speaker 4>by selling these GPUs.

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<v Speaker 3>All right, great stuff as always, Crawford, thank you so much.

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<v Speaker 3>Busy afternoon for you and really appreciate you carving out

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<v Speaker 3>some time for us. Crawford del Prett, president of IDC,

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<v Speaker 3>joining us from Massachusetts. Shares of HPE down about three percent,

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<v Speaker 3>Dell is up sixteen percent in the aftermarket.

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<v Speaker 2>There are a lot of people out there who worry

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<v Speaker 2>about money. In fact, if you worry about money, you're

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<v Speaker 2>not alone. A new study from Wells Fargo says that

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<v Speaker 2>more than half of Americans fifty six percent in fact,

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<v Speaker 2>say they always worry about money even when they have enough.

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<v Speaker 3>Yeah, two thirds of Americans have decreased their spending due

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<v Speaker 3>to the economy. These are just a couple of the

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<v Speaker 3>nuggets in the Wells Fargo Money Study. It's a new

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<v Speaker 3>study app for the bank and looking for us. Michael

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<v Speaker 3>Leers is here. He's head of Advice in Planning at

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<v Speaker 3>Wells Fargo, joining us here in our Bloomberg Interactive Broker studio.

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<v Speaker 2>Well is this just the human condition that no matter

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<v Speaker 2>how much money somebody has, they're going to be worried

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<v Speaker 2>about money.

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<v Speaker 1>There's an element of that, but part of this is

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<v Speaker 1>also the narrative out there, okay, what money means, and

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<v Speaker 1>you see it in social media, you see it in conversations,

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<v Speaker 1>which is money might not be taking us as far

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<v Speaker 1>as it used to, and so that's creating Actually, in

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<v Speaker 1>our study, it actually creates an extraordinary worry beyond what

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<v Speaker 1>people said they worried about when they're younger.

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<v Speaker 2>We were just talking about this with our TV crew

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<v Speaker 2>about the price of a eating out for lunch or

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<v Speaker 2>the price of getting a salad delivered. It's a stickershock

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<v Speaker 2>for a lot of people, it is.

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<v Speaker 3>It's kind of ridiculous, or buying a piece of pizza.

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<v Speaker 3>Buying a pizza and you're like spending fifty bucks, you

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<v Speaker 3>like it.

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<v Speaker 2>You give me such a hard time for hoarding snacks

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<v Speaker 2>upstairs here where we have they're so generous with their

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<v Speaker 2>snacks here, Like you walk by my desk and it's

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<v Speaker 2>just like it's a buffet of FREEINGA No.

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<v Speaker 3>But it's interesting what you say about kind of how

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<v Speaker 3>we think about money. What is I've often thought about it.

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<v Speaker 3>In a society, we're increasingly aren't handling cash like are

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<v Speaker 3>we getting distorted that we just kind of, you know,

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<v Speaker 3>digitally doing everything, then all of a sudden we're like,

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<v Speaker 3>oh my god, where did it all go? But anyway,

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<v Speaker 3>tell us more about you.

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<v Speaker 1>There's a piece of that. I mean, we ask people

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<v Speaker 1>what they do every week, and they said things like

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<v Speaker 1>spend nine hours scrolling social media and three hours a

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<v Speaker 1>week looking at their money. So to your point, we

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<v Speaker 1>are actually not looking at our money as much as

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<v Speaker 1>we used to because remember when we used to have

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<v Speaker 1>like clips that would put our money in wads and

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<v Speaker 1>we put them in our pocket, or we'd actually eat

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<v Speaker 1>your point, take out the cash get changed, or we'd

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<v Speaker 1>have a piggy bank.

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<v Speaker 2>When I was a kid, my parents taught me how

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<v Speaker 2>to balance a checkbook and like, if I didn't balance

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<v Speaker 2>my checkbook at the end of the month, yeah, we'd

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<v Speaker 2>get in trouble and my parents would be like, okay.

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<v Speaker 1>Where So we asked teens actually about their anxieties related

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<v Speaker 1>to money in the survey, and we do something called

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<v Speaker 1>the Taco Load Protocol where we just have conversations like this,

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<v Speaker 1>And one of the teens said they didn't even know

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<v Speaker 1>what a bank account was, and they wanted us to

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<v Speaker 1>explain it to them. So you're spot on, You're right,

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<v Speaker 1>it's not the typical thing these days.

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<v Speaker 3>Well, I feel like in my whole career, there's a

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<v Speaker 3>couple things that we've always talked about, more women in

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<v Speaker 3>executive suites and diversity and the importance of that, and

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<v Speaker 3>yet we're still struggling with some of this stuff. But

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<v Speaker 3>the other thing is financial literacy and the importance of

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<v Speaker 3>teaching kids at a younger generation. I feel like kids,

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<v Speaker 3>I don't know whether it's grade school, whether it's in

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<v Speaker 3>middle school, but somewhere home economics is going to the wayside.

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<v Speaker 3>But we need financial economics being taught in schools. We

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<v Speaker 3>talk about it, why aren't we doing it, and what

0:11:02.440 --> 0:11:03.400
<v Speaker 3>the impact could be.

0:11:03.760 --> 0:11:07.720
<v Speaker 1>Well, what's important to think about is where do teens

0:11:07.880 --> 0:11:09.840
<v Speaker 1>and young people want to get the information? We asked

0:11:09.840 --> 0:11:11.840
<v Speaker 1>that question and where they get it? Yeah, and they

0:11:11.880 --> 0:11:14.800
<v Speaker 1>do get it from their parents, So that's where they

0:11:14.880 --> 0:11:16.680
<v Speaker 1>want to and that's where they actually get the information.

0:11:16.800 --> 0:11:19.600
<v Speaker 1>So we can look to let's say third parties to

0:11:19.600 --> 0:11:22.240
<v Speaker 1>give our kids that information, but really they're looking to

0:11:22.320 --> 0:11:25.880
<v Speaker 1>their family units to provide information about money, information about

0:11:25.880 --> 0:11:28.599
<v Speaker 1>saving and investing, what to do with it, what constitutes

0:11:29.360 --> 0:11:32.600
<v Speaker 1>things that are aligned with your values versus misaligned. And

0:11:32.760 --> 0:11:36.800
<v Speaker 1>teens want that information and actually they said they want

0:11:36.800 --> 0:11:39.000
<v Speaker 1>it from their parents, but they're also looking to banks

0:11:39.120 --> 0:11:40.280
<v Speaker 1>to provide the information too.

0:11:40.480 --> 0:11:42.560
<v Speaker 3>But don't you think about it, like we talk about

0:11:42.960 --> 0:11:45.240
<v Speaker 3>so if your parents aren't great managing money, then you

0:11:45.280 --> 0:11:48.640
<v Speaker 3>pass on those bad habits. So I just wonder how

0:11:48.640 --> 0:11:49.280
<v Speaker 3>do you break kind of the.

0:11:49.360 --> 0:11:52.360
<v Speaker 2>Stories about that. Absolutely, people can be open on social

0:11:52.400 --> 0:11:54.480
<v Speaker 2>media this stuff with stuff like that, and also like

0:11:54.480 --> 0:11:58.160
<v Speaker 2>how they break those habits which cannot be which is difficult.

0:11:58.200 --> 0:12:00.280
<v Speaker 1>Well, what are the toughest habits that teens say that

0:12:00.360 --> 0:12:02.960
<v Speaker 1>they observe and they do themselves. Is lying about money,

0:12:03.520 --> 0:12:05.720
<v Speaker 1>how much they spend, how much their house is worth.

0:12:06.120 --> 0:12:08.400
<v Speaker 1>So adults admitted to doing it, but teams admitted it

0:12:08.400 --> 0:12:10.360
<v Speaker 1>to doing it even more than adults. So we can say,

0:12:10.480 --> 0:12:12.600
<v Speaker 1>what's going on to your point behind the scenes, how

0:12:12.600 --> 0:12:14.839
<v Speaker 1>do we get past it? And what people say is

0:12:14.880 --> 0:12:16.960
<v Speaker 1>there's just not a lot of money conversations going on

0:12:17.000 --> 0:12:19.959
<v Speaker 1>in their families at all. So it's still something we're

0:12:20.000 --> 0:12:21.720
<v Speaker 1>reluctant to talk about for whatever reason.

0:12:22.200 --> 0:12:24.080
<v Speaker 2>It's also I think hard, like you know, as a

0:12:24.080 --> 0:12:26.200
<v Speaker 2>parent of young kids, it's like a heart. It's kind

0:12:26.240 --> 0:12:28.040
<v Speaker 2>of a hard thing to talk about, you know, because like,

0:12:28.320 --> 0:12:30.680
<v Speaker 2>for example, I'm out with you know, my son who's five,

0:12:30.720 --> 0:12:32.320
<v Speaker 2>and he wants a snack and I'm like, no, you

0:12:32.360 --> 0:12:34.280
<v Speaker 2>can't have a snack, Like we can't buy a snack

0:12:34.360 --> 0:12:36.120
<v Speaker 2>every time we leave the house, right, And he's like,

0:12:36.160 --> 0:12:37.520
<v Speaker 2>is it because you don't have any money? And I'm

0:12:37.559 --> 0:12:41.199
<v Speaker 2>like kind of, I mean yes and no. One time

0:12:41.240 --> 0:12:43.040
<v Speaker 2>he told me to go to the money store. He's like,

0:12:43.120 --> 0:12:45.280
<v Speaker 2>can't you order some money? So we have money?

0:12:45.360 --> 0:12:47.840
<v Speaker 1>Well, money does grow on trees, Yes, apparently it does.

0:12:48.040 --> 0:12:49.360
<v Speaker 3>Hey, way.

0:12:50.840 --> 0:12:52.400
<v Speaker 2>We can we can learn a thing or two from

0:12:52.440 --> 0:12:57.440
<v Speaker 2>young kids. Right, you break this down into different categories.

0:12:57.440 --> 0:12:59.840
<v Speaker 2>One of the categories you define is the young affluent. Yes,

0:13:00.000 --> 0:13:01.680
<v Speaker 2>who was young? Who are the young affluent?

0:13:01.760 --> 0:13:04.880
<v Speaker 1>So when we think of young affluent, think of twenty somethings.

0:13:05.200 --> 0:13:07.720
<v Speaker 1>And when you think of twenty somethings, think of human

0:13:07.720 --> 0:13:10.800
<v Speaker 1>beings who have anywhere between two hundred and fifty thousand

0:13:11.240 --> 0:13:14.600
<v Speaker 1>to ten million dollars in assets. So it's a broad

0:13:14.679 --> 0:13:18.200
<v Speaker 1>range of young people who actually are earning a lot

0:13:18.320 --> 0:13:20.560
<v Speaker 1>and saving and investing a lot. Maybe they own a

0:13:20.600 --> 0:13:23.520
<v Speaker 1>home that's impressible. And what was very impressive about them

0:13:23.600 --> 0:13:25.680
<v Speaker 1>is they're the most likely to want to do things

0:13:25.720 --> 0:13:30.320
<v Speaker 1>like plan not delay their life because of money, but

0:13:30.360 --> 0:13:32.440
<v Speaker 1>they want to be more and more intentional about it.

0:13:32.480 --> 0:13:34.920
<v Speaker 1>So they seem to be one of the more optimistic

0:13:35.000 --> 0:13:37.280
<v Speaker 1>and planful groups of any of the groups we talk to.

0:13:37.559 --> 0:13:40.320
<v Speaker 3>I am wondering in terms of this survey, and Michael,

0:13:40.360 --> 0:13:42.319
<v Speaker 3>you know what you got. You're over at Wells Fargo.

0:13:42.360 --> 0:13:46.520
<v Speaker 3>We are constantly whether it's government data points on consumers,

0:13:46.520 --> 0:13:49.040
<v Speaker 3>how they're doing, how they're spending, whether we talk to CEOs,

0:13:49.040 --> 0:13:51.840
<v Speaker 3>consumer facing CEOs. We've done that a lot, certainly this

0:13:51.960 --> 0:13:55.720
<v Speaker 3>earning season. But I'm wondering what this survey helped you

0:13:55.800 --> 0:13:59.520
<v Speaker 3>kind of say about the financial health of consumers or

0:13:59.559 --> 0:14:00.640
<v Speaker 3>society right now.

0:14:00.679 --> 0:14:05.440
<v Speaker 1>Two things. One is that Americans are relentlessly optimistic, and

0:14:05.480 --> 0:14:08.440
<v Speaker 1>so what the majority of our survey participants told us

0:14:08.520 --> 0:14:10.800
<v Speaker 1>is they wanted to stop talking about problems. And so

0:14:10.800 --> 0:14:13.400
<v Speaker 1>when you think of concepts like financial health, that's nice,

0:14:13.400 --> 0:14:16.319
<v Speaker 1>but what they wanted is this solution, less of an assessment,

0:14:16.360 --> 0:14:19.280
<v Speaker 1>more will tell me how I should be thinking about money,

0:14:19.320 --> 0:14:21.760
<v Speaker 1>what I should be doing. The second thing is they're

0:14:22.080 --> 0:14:25.760
<v Speaker 1>very eager to do things like figure out how to

0:14:25.880 --> 0:14:28.200
<v Speaker 1>stick with a saving an investing plan. It's not that

0:14:28.240 --> 0:14:30.600
<v Speaker 1>they don't know that that's important. How do you stick

0:14:30.640 --> 0:14:32.600
<v Speaker 1>with it? And they often think you have to do

0:14:32.600 --> 0:14:36.400
<v Speaker 1>in big bite size now excuse me, large chunks rather

0:14:36.440 --> 0:14:39.080
<v Speaker 1>than little bite sized chunks. They think bite sized chunks

0:14:39.400 --> 0:14:42.280
<v Speaker 1>don't matter. So we have to reframe that. As you

0:14:42.360 --> 0:14:46.920
<v Speaker 1>know financial services professionals, little tiny changes actually lead to big,

0:14:47.000 --> 0:14:49.640
<v Speaker 1>extraordinary outcomes over two or three years. And I'm sure

0:14:49.640 --> 0:14:52.600
<v Speaker 1>you see it. Your child polic sees it. If you

0:14:52.680 --> 0:14:54.560
<v Speaker 1>put a couple quarters, if you were able to do

0:14:54.560 --> 0:14:57.000
<v Speaker 1>that these days, and if higgybank we all remember this,

0:14:57.400 --> 0:14:59.560
<v Speaker 1>you know, a month, two months, three months later you

0:14:59.560 --> 0:15:01.600
<v Speaker 1>could buy it toy. These are the types of things

0:15:01.600 --> 0:15:03.000
<v Speaker 1>we need to start re engaging in.

0:15:03.200 --> 0:15:07.160
<v Speaker 2>Fortunately, lollipops and swim class are twenty five cents still, yes,

0:15:07.240 --> 0:15:10.280
<v Speaker 2>so there are there are lessons to swim classes are

0:15:10.320 --> 0:15:12.240
<v Speaker 2>not swim classes. I'm not even to get started on

0:15:12.240 --> 0:15:16.160
<v Speaker 2>how expensive sluss. Hey, before you go, Michael, this is

0:15:16.200 --> 0:15:18.280
<v Speaker 2>the first time that Wells Fargo has done this, so

0:15:18.320 --> 0:15:21.600
<v Speaker 2>there's not this idea of comparing it to what's happened.

0:15:22.120 --> 0:15:24.120
<v Speaker 2>What the research has said in previous years, but still,

0:15:24.120 --> 0:15:26.800
<v Speaker 2>can you offer us any differences from earlier generations or

0:15:26.960 --> 0:15:28.280
<v Speaker 2>how this thinking has changed.

0:15:28.600 --> 0:15:31.400
<v Speaker 1>Well, so the thinking has changed in terms of Americans

0:15:31.440 --> 0:15:34.120
<v Speaker 1>not wanting to feel judged by others or by themselves

0:15:34.160 --> 0:15:36.560
<v Speaker 1>about money anymore. And that's something that I think people

0:15:36.560 --> 0:15:39.000
<v Speaker 1>are more willing to accept. I think social media has

0:15:39.040 --> 0:15:41.560
<v Speaker 1>got us more aware that that's not a great behavior.

0:15:41.560 --> 0:15:44.480
<v Speaker 1>And the second thing is they really want to set goals.

0:15:44.520 --> 0:15:46.440
<v Speaker 1>And so we have a capability called life Sync and

0:15:46.480 --> 0:15:48.640
<v Speaker 1>our mobile app, and what it does is allows you

0:15:48.680 --> 0:15:50.320
<v Speaker 1>to actually say, I want to manage credit and debt,

0:15:50.320 --> 0:15:52.280
<v Speaker 1>I want to manage my spending. It can upload pictures

0:15:52.280 --> 0:15:55.520
<v Speaker 1>to inspire you. So people want to be more inspired.

0:15:55.960 --> 0:15:58.240
<v Speaker 1>And so that's where it's changing. People want to shift

0:15:58.240 --> 0:16:02.320
<v Speaker 1>from pessimism, you know, toking let's say badly about themselves

0:16:02.400 --> 0:16:05.680
<v Speaker 1>or judgmentally about themselves, and move toward optimistic ideas.

0:16:05.760 --> 0:16:07.280
<v Speaker 3>I think there's apps and so on, and so far they

0:16:07.320 --> 0:16:09.240
<v Speaker 3>kind of help you track your spending, kind of set

0:16:09.240 --> 0:16:11.400
<v Speaker 3>your goals. Can be really really useful. I was just

0:16:11.400 --> 0:16:12.640
<v Speaker 3>going to say, there were a bunch of kids just

0:16:12.680 --> 0:16:15.840
<v Speaker 3>outside our studio. I didn't know if that was part

0:16:15.880 --> 0:16:17.600
<v Speaker 3>of your survey.

0:16:17.000 --> 0:16:20.200
<v Speaker 1>Or maybe I know them and I don't realize it,

0:16:20.400 --> 0:16:20.960
<v Speaker 1>or maybe.

0:16:20.720 --> 0:16:24.240
<v Speaker 4>They have started to add our healthcare team leader Cynthia

0:16:24.320 --> 0:16:27.040
<v Speaker 4>Kuhons and our kids a couple of juice boxes.

0:16:27.080 --> 0:16:28.160
<v Speaker 1>There is really adorable.

0:16:28.560 --> 0:16:29.800
<v Speaker 3>This was fun, very interesting.

0:16:29.960 --> 0:16:31.160
<v Speaker 1>Thank you so much for having me.

0:16:31.240 --> 0:16:35.120
<v Speaker 3>Really appreciate Michael Yeah, head of advice and Planning over

0:16:35.120 --> 0:16:37.560
<v Speaker 3>at Wells Fargo, joining us here in our interactive broker studio.

0:16:37.560 --> 0:16:40.400
<v Speaker 3>You're listening and watching Bloomberg Business with Carol Master Tim Stenevik.

0:16:40.600 --> 0:16:41.360
<v Speaker 3>This is Bloomberg