Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside
Speaker 1: my co host Matt Miller. Every business day we bring
Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
Speaker 1: with essential market moving news. Find the Bloomberg Markets podcast
Speaker 1: called Apple Podcasts or wherever you listen to podcasts, and
Speaker 1: at Bloomberg dot com slash podcast. All right, let's check
Speaker 1: in with Adam Kunsi's a portfolio manager at Winthrop Capital Management.
Speaker 1: Adam tough start to the week here, what do you
Speaker 1: just make it today's trading? They thanks for having me. Yeah,
Speaker 1: I mean, I think volatility is going to be the
Speaker 1: theme for the first quarter. This seems a little bit
Speaker 1: like deja bou of the first quarter of last year,
Speaker 1: where we saw interest rates start to pick up and
Speaker 1: you know, obviously meaningly meaningfully kicking up this year. At
Speaker 1: the same time that's kind of pushing technology to roll over,
Speaker 1: and right now we're dealing with the fact that that
Speaker 1: the consumer is starting to weekend as well, just an
Speaker 1: and their behavior and the mentality on what they're doing,
Speaker 1: what they're spending money on. So altility is going to
Speaker 1: be here for the foreseeable future. So what kind of
Speaker 1: rate increases they're expecting, what kind of curve flattening you're expecting,
Speaker 1: and what what does that due to risk assets? Yeah,
Speaker 1: so I mean the curse flatten considerably h eighty basis
Speaker 1: points just over the last three months or so. So
Speaker 1: the bond market is absolutely telling you that that there's
Speaker 1: something going on here um and and to just blame
Speaker 1: it on COVID and COVID variants I think is incorrect
Speaker 1: way to look at. And if you looked at retail
Speaker 1: sales after the delta Barrea came out, actually jumped, but
Speaker 1: if you look at the reading here in December, saw
Speaker 1: the retail still has actually rolled over. And then you
Speaker 1: look at savings rates are now back to pre COVID levels,
Speaker 1: and then just most recently consumer sentiment was back at
Speaker 1: its lows. So all of those factors are going to
Speaker 1: lead to a slowing economy, which you're seeing in the
Speaker 1: flattening of the OL curve. And we think that's going
Speaker 1: to continue to get worse because the Feds likely not
Speaker 1: going to take their foot off of the accelerator of
Speaker 1: of tightening their policy. They seem pretty ole bent on
Speaker 1: on tightening and raising rates. So likely we see them
Speaker 1: invert the curve, and so just you know, from that standpoint,
Speaker 1: it's just a matter of time when we see some
Speaker 1: sort of recession at the market. All right, So given
Speaker 1: that backdrop, Adam, kind of where are you thinking about,
Speaker 1: you know, allocating capital? Uh? Yeah, So, I mean, if
Speaker 1: you think rates are gonna go up, you would think
Speaker 1: fixed incomes not the place to be. But we particularly
Speaker 1: like the long end of the curve. Credit spreads have
Speaker 1: widened a little bit of the last couple of weeks.
Speaker 1: So looking at your high quality thirty year bonds, I
Speaker 1: think is a good place to be. You get some
Speaker 1: yield pick up and there is potential for spread tightening.
Speaker 1: But really the theme is moving up in quality, whether
Speaker 1: you're in fixed income like I just mentioned, or even
Speaker 1: in stocks. And really when we talk about high quality stocks,
Speaker 1: it's it's a lot of the names that that we've
Speaker 1: been in and that have worked over the last couple
Speaker 1: of years. It's kind of question of, you know, do
Speaker 1: you leave with the way you came to the dance
Speaker 1: with and I think we do. Um And when you
Speaker 1: look at companies like Apple and Microsoft's obviously in the
Speaker 1: news today and Alphabet, they have business models that can
Speaker 1: be sustainable through uh economic swings like we saw through
Speaker 1: through COVID. We've seen it time and time again that
Speaker 1: as as those companies sell off because investors think either
Speaker 1: rates are going up and valuations are gonna come back down,
Speaker 1: they sell, but then they come right back into them
Speaker 1: because at the end of the day, they're cash flow
Speaker 1: machines that that effectively have turned themselves into the most
Speaker 1: defensive stocks in the SMP five. So we think that's
Speaker 1: going to continue to work, all right, Adam, thanks so
Speaker 1: much for joining us. Always appreciate getting your perspective. Adam
Speaker 1: Coon's portfolio manager for Winthrop Capital Management. I note here
Speaker 1: he is a graduate of Indiana University. A Hoosier. Rough
Speaker 1: start to the trading week here, inflation, rising interest rates,
Speaker 1: concerns about the FEDS aggressiveness, all factoring into some unsteady
Speaker 1: trading show. We say, let's bring in a professional does
Speaker 1: this stuff for living? Liz Young, head of investment strategy
Speaker 1: for so Far. So, Liz, when you see a day
Speaker 1: like today, I'm assuming it gets your attention. Anything more
Speaker 1: than that, well, of course it gets our attention, it
Speaker 1: gets everybody's attention, I'm sure, But when you see a
Speaker 1: day like today and even a month like we're having
Speaker 1: in January, I think it's to be expected given the
Speaker 1: environment that we're entering. And this is an environment that
Speaker 1: is new to a lot of us, and it's something
Speaker 1: that I think still has a lot of uncertainty around it,
Speaker 1: around the paths of rate hikes, the speed of quantitative tightening,
Speaker 1: and the market is trying to understand what can still
Speaker 1: win in this space. And the tina I hate to
Speaker 1: use that acronym. I think it's very overused, but that
Speaker 1: tina mentality still very much at play because stocks offer
Speaker 1: the best reward opportunity. It's still better than fomo, UM
Speaker 1: and yolo definitely better than you. That's true. That's true. UM.
Speaker 1: So I wonder when you're when you're looking at UM,
Speaker 1: a way to hedge against inflation? Is our stocks? The
Speaker 1: best way? Do you think? I mean depends obviously on
Speaker 1: what you buy, but UM, is there anything else that's better?
Speaker 1: I think stocks are the best bet right now because
Speaker 1: we're in a place where the set is trying to
Speaker 1: control inflation. Right so, if you're looking at let's say
Speaker 1: six months out, the set is trying to control inflation
Speaker 1: on input costs and food and energy, so commodities are
Speaker 1: going to see a volatile period. Uh as the said
Speaker 1: tries to put a lid on a lot of that
Speaker 1: price pressure that's moving upward. So when you look at stocks,
Speaker 1: you have to choose your spots. But stocks can still
Speaker 1: do pretty well in an inflationary environment. I think there's
Speaker 1: been this belief that the stock market has to fall
Speaker 1: if there's inflation, and that inflation is all bad, and
Speaker 1: that's not true. It's just that certain pockets of the
Speaker 1: stock market are not going to do as well as
Speaker 1: they did in a low inflationary environment. And that namely
Speaker 1: is tech or even just the NASDAC broadly given all
Speaker 1: of its tech exposure. And you look at things like
Speaker 1: the broader SMP or the TAO, or even small caps,
Speaker 1: even though I know that the growthy part of small
Speaker 1: caps are really getting hurt this year already. Uh, there
Speaker 1: are pockets of the stock market that can do really well.
Speaker 1: And I would point out look at the spread between
Speaker 1: small cap growth and small cap value. Small cap value
Speaker 1: coming into today was actually positive year to date, small
Speaker 1: capt growth down almost eight percent. So it matters is
Speaker 1: the style that you're in. It matters the sector allocations
Speaker 1: that you have in an inflationary environment. Liz, we've seen
Speaker 1: a big move up in oil prices and the in
Speaker 1: the energy space here again, oil w t A crewed
Speaker 1: up another one point three percent today, that just under
Speaker 1: eighty five dollars a barrel, continuing its climb. How do
Speaker 1: you think about energy stocks here? Is there more room
Speaker 1: to grow? Yeah? I do think there's more room to
Speaker 1: go in energy, not only in oil prices but in
Speaker 1: energy stocks. Uh. And I don't think it's necessarily a
Speaker 1: long term play, but I think in the short term
Speaker 1: here a tactical opportunity and energy, especially as in the
Speaker 1: next few months we exit the winter months, and as
Speaker 1: you see, every time we have a new variant, we
Speaker 1: don't lock down nearly as hard right across the globe,
Speaker 1: so travel has really continued through oh Macron, and I
Speaker 1: think any new bouts of a new variant that we
Speaker 1: may have, travel will continue through that as well. And
Speaker 1: that's just going to drive more demand for energy. And
Speaker 1: if we get to a point where we are finally
Speaker 1: real opening and out of this stop start cycle, there's
Speaker 1: going to be still quite a bit of demand for energy.
Speaker 1: And then just think about the second derivative aspects of it.
Speaker 1: How many people have bought cars over the last year,
Speaker 1: how many people are dying to drive those cars to
Speaker 1: further destinations and and dying to get on airplanes and
Speaker 1: go to further places. So I think there's room for
Speaker 1: energy here. I would only caution investors that you don't
Speaker 1: want to see a ton of run up and energy
Speaker 1: to a point where it gets frosty or hits a spike,
Speaker 1: because when you get a spike in energy prices, very
Speaker 1: frequently a huge spike and energy is something that comes
Speaker 1: before a down draft in the economy. So we want
Speaker 1: to keep energy prices in control UM and I like
Speaker 1: to say things like I want them to take the stairs,
Speaker 1: not the elevator up by the way, another acronym that
Speaker 1: I hate as USP. But what is the unique selling
Speaker 1: point or what makes so Far different UM from other
Speaker 1: investment businesses. Well, so Far is an all in one
Speaker 1: app so it's not just an investment business. We have
Speaker 1: ways that people can save, we have ways that people
Speaker 1: can spend. We have a credit card, and then we
Speaker 1: have the invest platform that really offers our members a
Speaker 1: great way to invest and get started if they're new investors.
Speaker 1: It offers them a lot of different opportunities. You can
Speaker 1: buy I P O s on our platform, you can
Speaker 1: buy fractional shares on our platform, so there's a lot
Speaker 1: of great options. Crypto. You can buy a lot of
Speaker 1: crypto on our platform. But what what what's different about
Speaker 1: so far from say a robin Hood or a T
Speaker 1: dum merit trade or any of these other platforms that
Speaker 1: I guess younger investors are using to invest. Yeah, what's
Speaker 1: different about it is that we offer all of the
Speaker 1: solutions in one place. So a lot of the ones
Speaker 1: that are out there offering just an investing platform and
Speaker 1: you still have to do your banking somewhere else, in
Speaker 1: your credit card somewhere else, and you're lending somewhere else,
Speaker 1: and you can do every single one of them on ours, alright.
Speaker 1: I mean, we hear so much about it, and yes,
Speaker 1: it's gotten so popular that I just wanted to that's interesting.
Speaker 1: So you can do everything you don't need still a
Speaker 1: traditional bank account, you don't need to apply for a
Speaker 1: credit card elsewhere, and you can I guess use those
Speaker 1: uh services with each other, which probably it's got a
Speaker 1: market cap about ten billion dollars. Although the stock is
Speaker 1: off about prior twelve months after going public. I guess
Speaker 1: in October. All right, Liz, great to get a chance
Speaker 1: to talk to you. Let's talk about the office real
Speaker 1: estate space. Are people are gonna be coming back to
Speaker 1: the office. Do we need the companies and corporations need
Speaker 1: the space the footprint they had before the pandemic. I'm
Speaker 1: looking around here and I'm thinking the answer is noble
Speaker 1: or do they need more? Uh? Yeah, made for We're
Speaker 1: all sitting at these cubicles like little rat race rodents.
Speaker 1: You know, he's got four square feet like I would
Speaker 1: like some room to stretch out. My dad, by the way,
Speaker 1: had an office. I had at the door on it
Speaker 1: and you would go in there and he was the
Speaker 1: only person in there. You could close the door and
Speaker 1: have complete privacy. I had a table, a sofa like
Speaker 1: a little managing director at Credit Swiss First Boston. Those
Speaker 1: were the days, no Moss. Jeffrey Langbaum, Senior reat c
Speaker 1: R E equity analysts for Bloomberg Intelligence, joins us. Jeff.
Speaker 1: I keep seeing in the news companies in New York
Speaker 1: City and other urban areas continue the least space. Who's
Speaker 1: going to fill the space? I think the answer is
Speaker 1: somewhere in between what both of you are saying. Um,
Speaker 1: but people may not be back five days a week
Speaker 1: like we were before. UM, but companies are setting themselves
Speaker 1: up for a situation where people will be back some
Speaker 1: amount of time and they need space for that UM.
Speaker 1: And for each individual person, they might actually need more
Speaker 1: space than they needed previously. UM. What that means for
Speaker 1: the overall size of the footprint still remains to be seen.
Speaker 1: But the leases that we've that we're seeing getting done
Speaker 1: in many cases are actually for more space than what
Speaker 1: they had previously. So in terms of the return to work,
Speaker 1: we've had a couple of false starts here right especially
Speaker 1: on Wall Street, and everything seems to have gotten pushed back.
Speaker 1: You know, if you're a cool Stilicon Valley company, then forever. Um.
Speaker 1: If you're a conservative Wall Street bank, then like February
Speaker 1: fully boosted. Please, when are we going to see things
Speaker 1: get back to normal? Well, we'll see about that forever.
Speaker 1: I'm still skeptical about that. I think that most people
Speaker 1: are going to need to be in an office UM
Speaker 1: a portion of the time, whatever that may be, And
Speaker 1: I think the reason is that the companies want them
Speaker 1: there the people making these leasing decisions want their employees
Speaker 1: in person at least part of the time. UM and
Speaker 1: that's why leases are getting signed as far as when
Speaker 1: I mean, obviously, you know, every time there's going to
Speaker 1: be another spike of the virus is something that remains
Speaker 1: some amount of the normality going forward. You know, there's
Speaker 1: gonna be pauses and fits and starts. But I think
Speaker 1: at some point employers are going to want their employees back,
Speaker 1: and they're setting themselves up for when that's going to
Speaker 1: be um and and you know, we'll see how long
Speaker 1: it takes for it to get uh, you know, fully immersed. Jeff,
Speaker 1: how do you think about just across the country. You know,
Speaker 1: we we had this migration of people from urban centers
Speaker 1: fleeing to whether it's Florida or Texas or wherever Idaho falls.
Speaker 1: I mean, is that a long lasting thing? Are you
Speaker 1: seeing that in the vacancies and the rents or or
Speaker 1: do you still see a future for the urban centers.
Speaker 1: I still see the future for the urban center. I
Speaker 1: think that's where the the majority of the companies want
Speaker 1: to at least have their core, you know, central locations.
Speaker 1: You know, that's where the talent is that's where the
Speaker 1: young people want to be. I think for the most part,
Speaker 1: you're obviously seeing some corporate relocations. You're seeing some satellite
Speaker 1: offices opened, you know, throughout the South and you know,
Speaker 1: the South Florida the new hotbed. But but you're not
Speaker 1: seeing too many companies relocate in full force down there.
Speaker 1: And I don't think that that happens. Um. I think
Speaker 1: that you continue to have demand for places like New
Speaker 1: York and San Francisco, even if on the margin there
Speaker 1: are people migrating away from those cities. It's a bummer, dude.
Speaker 1: I was hoping you were going to say, look, obviously
Speaker 1: we're gonna keep New York, Chicago, Los Angeles, but let's
Speaker 1: spread out a little bit, like we are in the office,
Speaker 1: you know, Let's some of us go to Austin. Let's
Speaker 1: some of us go to like Taos. You know that. Uh,
Speaker 1: you know, I think I think some people are right,
Speaker 1: But it's not companies wholesale leaving for those locations. Yeah. No,
Speaker 1: that's what I thought. It would be cool. I mean,
Speaker 1: it would be cool if big companies, huge corporations would
Speaker 1: say we're leaving San Francisco, you know, and we're going
Speaker 1: to Myrtle Beach or whatever. Like. You know, we can
Speaker 1: communicate with everybody in the world easily and electronically. We
Speaker 1: don't need to be down the street. So but that's
Speaker 1: just one of my pipe dreams. I want population centers
Speaker 1: just to spread out. I think we're too dense really.
Speaker 1: All right, well, Jeff's first, how about in New York City,
Speaker 1: what's just give us delay of the land in commercial
Speaker 1: real estate in New York City, Well, office leasing in
Speaker 1: the fourth quarter was the highest that has been since
Speaker 1: the fourth quarter of two thousand nineteen. Has been a
Speaker 1: steady uptick. Now we're still below pre pandemic levels, right,
Speaker 1: the amount of LEAs is being signed is still below
Speaker 1: pre pandemic levels, and vacancy is elevated. Um rents are
Speaker 1: falling because the vacancy is elevated. But what is really happening,
Speaker 1: I think, is the a migration of tenants to higher
Speaker 1: quality buildings. There's going to be a bifurcation the newer
Speaker 1: and more recently renovated buildings with the highest amenities in
Speaker 1: the best locations. Those are going to be the ones
Speaker 1: that attract pennants and keep occupancy high and rent high,
Speaker 1: and those that are on the opposite end of the spectrum,
Speaker 1: are really going to suffer and potentially you know, become
Speaker 1: obsolete as office buildings and need to find some other
Speaker 1: other use. And so I think that that will naturally,
Speaker 1: over time reduce the amount of space um uh, you know,
Speaker 1: overall available space, and get us back more towards a
Speaker 1: period uh a position of equilibrium. All right, Jeff, thanks
Speaker 1: so much for joining us. Always appreciating your thoughts on
Speaker 1: the real estate space. Jeff Langbaum, He's a senior read
Speaker 1: analyst for Bloomberg Intelligence. He's been doing this for decades,
Speaker 1: but he used to do it from the office. Yeah,
Speaker 1: and I working from home today. And we'll see how
Speaker 1: long that lasts here at Bloomberg LP. I get a
Speaker 1: sense that we'll be coming back to the office at
Speaker 1: some point and not too distant future. We'll see how
Speaker 1: that plays out. Every corporation seems to be uh kind
Speaker 1: of dealing with that as well. So many industries have
Speaker 1: been disrupted by this pandemic, by the economic disruption. One
Speaker 1: of them is just broadly defined transportation, but particularly aviation,
Speaker 1: and who wants to hop in an aircraft with two
Speaker 1: yr you know, potentially infected people that's been a real
Speaker 1: issue for the industry, and one of the results is
Speaker 1: private aircraft travel has actually picked up during the pandemic.
Speaker 1: We want to get some more color on that. Tal Kanan,
Speaker 1: CEO of sky Harbor Group, joins us Talent, thanks so
Speaker 1: much for taking that time here. Just briefly, let's start
Speaker 1: off at just saying what is sky Harbor. What do
Speaker 1: you guys do within the aviation space? Well, thanks for
Speaker 1: having me conceptual Our business very simple. We we secure
Speaker 1: land at airports across the United States. These are mainly
Speaker 1: airports and supports business aviation. We developed campuses of hangars
Speaker 1: for business aviation and then least them out long term
Speaker 1: to corporate or individual tenants and manage them. That's good business.
Speaker 1: And how did you I mean, you come from impressive
Speaker 1: education and you are a fighter pilot yourself. Um, what's
Speaker 1: your idea for this business that differentiates it from other
Speaker 1: businesses in the space. Yeah, so a couple of things. First,
Speaker 1: I think it's it's a non controversial statement. There is
Speaker 1: massive unmet demand for hangar space in business aviation across
Speaker 1: the United States. And you know, just to kind of
Speaker 1: give you a sense, put some numbers on it. Uh,
Speaker 1: the square footage of the US business aviation fleet grew
Speaker 1: by twenty seven and a half million square feet between
Speaker 1: two thousand and two thousand and twenty. Now what's happened
Speaker 1: in the last two years is just a very very
Speaker 1: dramatic acceleration of that trend. You know, what we have
Speaker 1: now is a situation where the vast majority you probably close,
Speaker 1: of those who can afford private air travel in the
Speaker 1: United States. I'm talking about both corporations and individuals UH
Speaker 1: close to have not availed themselves of private aviation. And
Speaker 1: what we're seeing right now, and I think your introduction
Speaker 1: was very appropriate, appropriate on that we're seeing right now
Speaker 1: is just a you know, the whole scale migration from
Speaker 1: commercial aviation into private among those. By the way, why
Speaker 1: haven't day I mean, is it just not prudent to
Speaker 1: spend your money that way? Tal It seems like the
Speaker 1: jump from business class to your own jet is quite
Speaker 1: a bit. Yeah, I mean, for it is expensive. I
Speaker 1: think culturally a lot of things, a lot of people,
Speaker 1: a lot of corporations haven't like that look for a
Speaker 1: long time, but increasingly that is a responsible thing to do,
Speaker 1: especially for a business. You know, that involves a lot
Speaker 1: of travel and sending people on kind of extended road
Speaker 1: trips today using commercial travel is disruptive. And you know,
Speaker 1: one of the things you'll see it's it's not just
Speaker 1: it's not just the risk of contracting COVID nineteen on
Speaker 1: a commercial flight, it's the airline's reaction to COVID, which
Speaker 1: has largely been to cancel and diminish a lot of routes.
Speaker 1: So getting from secondary city to secondary city in the
Speaker 1: United States today is much more difficult than it was
Speaker 1: two years ago, and I think that's probably going to
Speaker 1: be the case for a while. Talent, how do you
Speaker 1: think business travel is going to return? And we've seen
Speaker 1: generally leisure travel come back depending upon where we are
Speaker 1: with with the various variants, but business travels something different.
Speaker 1: How do you think about it? Well, so a couple
Speaker 1: of things. First, in much of the country it already
Speaker 1: has returned. And then some you know, if we look
Speaker 1: at kind of our facility in Miami, we look at
Speaker 1: the fuel volumes that fuel consumption by business aviation. We're
Speaker 1: hitting record years. If you see delivery of new aircraft
Speaker 1: was a record year. Delivery of new business aircraft two
Speaker 1: is going to beat it. About twelve, so the market
Speaker 1: is already speaking on this. You know, the the this,
Speaker 1: this business aviation fleet in the United States will continue
Speaker 1: to expand by literally millions of square feet per year,
Speaker 1: I think for the foreseeable future. And I think one
Speaker 1: of the things that's worth looking at. Historically, the move
Speaker 1: from commercial to business aviation has tended to be secular.
Speaker 1: You know. On once a company decides it's going to
Speaker 1: start flying privately, it tends to go back to commercial aviation.
Speaker 1: So we we think you can't go back. I will
Speaker 1: tell you I a good friend of mine as a CEO,
Speaker 1: was a CEO of Major Carmaker, and after he retired,
Speaker 1: his family made him take one trip on a commercial
Speaker 1: flight and he said, man, I never want to do
Speaker 1: that again. Awful, awful explorence um and it is bad.
Speaker 1: You know. They sit you right on top of each other.
Speaker 1: They don't care about the risk of COVID. They will
Speaker 1: they they will put you less than a safe social
Speaker 1: distance apartment in the plane and on the bus. And
Speaker 1: tell I want to ask about Miami as a choice.
Speaker 1: I believe you're from Miami, but I know you studied
Speaker 1: at Georgetown and then in the Northeast You've advised government
Speaker 1: task forces in Israel where you served in the military,
Speaker 1: so you've been around. Why go back to your roots.
Speaker 1: Why choose Miami as a place to headquarter your company? Well,
Speaker 1: so it's it's it's only one of our facilities right now. Yeah,
Speaker 1: we've been six facilities today. The company is actually headquartered
Speaker 1: in New York. I will say it is one of
Speaker 1: my favorites. And then you know, the just business growth
Speaker 1: of business aviation growth in South Florida has really been
Speaker 1: off the charts, even compared to what we're seeing around
Speaker 1: the country. Yeah, I wanted to ask you know what
Speaker 1: you thought of the city. We've been talking a lot
Speaker 1: about divertification away from New York, but I guess you,
Speaker 1: I guess what your experience proves is you still have
Speaker 1: to be in New York. It's still an incredibly important hub. Yeah,
Speaker 1: you know, I think, certainly from a business aviation perspective,
Speaker 1: you could cut New York in half and it would
Speaker 1: still be you know, it still become a top five
Speaker 1: market in the country for US. And I don't think
Speaker 1: it's good to tell. You know, Matt's out there in
Speaker 1: the car market trying to buy a car and his
Speaker 1: supply chains at killing them. You can't find anything wait list.
Speaker 1: If I want to go out there and get an aircraft,
Speaker 1: a private jet, can I get one? Am I going
Speaker 1: to pay through the nose? Can I get in discounts?
Speaker 1: What's the market like? Yeah, the short answer is you cannot.
Speaker 1: You're absolutely right. It's a very relevant question. Uh. If
Speaker 1: you look at the various websites you know where aircraft
Speaker 1: are traded, you know, they went from a year ago
Speaker 1: advertising aircraft and now kind of aircraft wanted to see
Speaker 1: a you know, like wanted um. So yes, There's been
Speaker 1: also a lot of move movement in the secondary market
Speaker 1: for used business aircraft, which is pro us right. Europe
Speaker 1: as a net seller of used business jets to the
Speaker 1: United States the net fire of business jets right now,
Speaker 1: and prices have gone up considerably in the secondary market
Speaker 1: as well. By the way that those supply chain issues
Speaker 1: are also you know, I think the aircraft oms feel
Speaker 1: that as well. But because the numbers are much smaller,
Speaker 1: you know, seven aircraft delivered in is a record years,
Speaker 1: nothing like the automotive industry, I think the impact of
Speaker 1: the supply chain issues is a little bit lighter, all right,
Speaker 1: So it sounds like I should hold onto my United miles.
Speaker 1: Then uh, Greg Jarrett proposes trade of plane. It's a
Speaker 1: website that I peruse quite often. But you're not finding
Speaker 1: a G six fifty there. This is more like um
Speaker 1: per cup exactly, more like a place for a piper cup.
Speaker 1: Towns great to have, sorry, even though you'll see the
Speaker 1: christ that. Yeah, you know the prices are soaring. Um
Speaker 1: to you to use a bad punch, twel, I'd love
Speaker 1: to have you back on the program. I think really
Speaker 1: interesting stuff and um, it's a business. I think we
Speaker 1: all would like to see grow a little bit. I
Speaker 1: think we all want a little piece of that little
Speaker 1: piece of private I would to play and travel. Talking
Speaker 1: there with Talcane. He's the CEO of Sky Harbor Group.
Speaker 1: Thanks for listening to the Bloomberg Markets podcast. You can
Speaker 1: subscribe and listen to interviews with Apple Podcasts or whatever
Speaker 1: podcast platform you prefer. I'm Matt Miller. I'm on Twitter
Speaker 1: at Matt Miller V three. Put on false Sweeney I'm
Speaker 1: on Twitter at pt Sweeney. Before the podcast, you can
Speaker 1: always catch us worldwide at Bloomberg Radio