WEBVTT - Weak Jobs Data Fuel Fed Bets 0:00:02.520 --> 0:00:10.520 Bloomberg Audio Studios, Podcasts, radio news. This is Bloomberg Business 0:00:10.520 --> 0:00:14.400 Week Daily reporting from the magazine that helps global leaders 0:00:14.440 --> 0:00:18.360 stay ahead with insight on the people, companies, and trends 0:00:18.400 --> 0:00:23.400 shaping today's complex economy. Plus global business finance and tech 0:00:23.480 --> 0:00:27.360 news as it happens. The Bloomberg Business Week Daily Podcast 0:00:27.680 --> 0:00:31.760 with Carol Masser and Tim Stenebeck on Bloomberg Radio. 0:00:32.640 --> 0:00:35.199 Beige Book is at published day times the year, fifty 0:00:35.280 --> 0:00:38.239 one pages, just crossing the Bloomberg terminal, and it's all 0:00:38.240 --> 0:00:41.360 about anecdotal information on the current economic condition. So let's 0:00:41.440 --> 0:00:44.240 get to it deeper analysis with our own Stuart paul 0:00:44.400 --> 0:00:47.479 Us and Canada economists for Bloomberg Economics use here in 0:00:47.520 --> 0:00:50.320 our Bloomberg studio. All right, so what jumps out at you, Stuart? 0:00:50.760 --> 0:00:54.880 All told, this Beige Book released just today is overall 0:00:54.920 --> 0:00:57.720 more negative than everything that we saw in July. Most 0:00:57.760 --> 0:00:59.920 of the twelve federal reserve districts reported little or no 0:01:00.240 --> 0:01:06.160 change in economic activity overall, most notably, real wage growth 0:01:06.560 --> 0:01:09.480 seems to be dismal, and it's weighing on consumer spending 0:01:09.480 --> 0:01:14.080 and consumer activity, focusing on those wages and the labor 0:01:14.120 --> 0:01:17.639 market that's producing those wages. Eleven of the twelve Federal 0:01:17.680 --> 0:01:21.240 Reserve districts describe little or no net change in overall 0:01:21.400 --> 0:01:26.080 employment levels, corroborating basically what we've seen in the payrolls 0:01:26.160 --> 0:01:29.520 over the last several months. Looking at prices a little 0:01:29.560 --> 0:01:33.480 bit more inflationary than everything we saw in July. Ten 0:01:33.680 --> 0:01:37.440 of the twelve districts characterize price growth as moderate or modest. 0:01:37.760 --> 0:01:42.240 The other two districts strong input price growth that's outpacing 0:01:42.319 --> 0:01:46.480 moderate or moderate or moderate or modest selling prices, and 0:01:46.520 --> 0:01:47.800 that's going to be the thing that we're going to 0:01:47.840 --> 0:01:50.440 be thinking about with the inflation landscape going forward. There 0:01:50.440 --> 0:01:54.440 are some tariff price pressures that are going into the pipeline, 0:01:54.520 --> 0:01:58.120 and the question is just how much can consumers allow 0:01:58.200 --> 0:02:01.720 those prices to rise before demand retrenches. And the Beige 0:02:01.720 --> 0:02:04.760 Book right now is showing that demand is retrenching because 0:02:04.800 --> 0:02:06.280 of weakening real wages. 0:02:06.440 --> 0:02:09.079 On that Stewart reading from the Beige Book, it says 0:02:09.160 --> 0:02:14.239 QUOTE contacts frequently cited economic uncertainty and tariffs as negative factors. 0:02:14.520 --> 0:02:16.160 New York reported that Quote. 0:02:15.880 --> 0:02:19.760 Consumers were being squeezed by rising costs of insurance, utilities, 0:02:19.760 --> 0:02:23.960 and other expensive expenses. The Beige book, also noting that 0:02:24.000 --> 0:02:27.919 contacts reported flat to declining consumer spending because from many households, 0:02:28.000 --> 0:02:31.600 wages were failing to keep up with rising prices. What 0:02:31.600 --> 0:02:34.320 does all of this mean for the FED meeting later 0:02:34.360 --> 0:02:36.600 this month and that twenty five basis point cut that 0:02:37.040 --> 0:02:39.080 pretty much everyone out there is expecting. 0:02:38.639 --> 0:02:41.160 Everyone's expecting it. But what this really ends up coming 0:02:41.200 --> 0:02:45.320 down to is counting the votes on the FOMC, on 0:02:45.360 --> 0:02:49.160 that Monetary policy making committee. So one of the things 0:02:49.160 --> 0:02:50.880 that's nice about the page book we get to look 0:02:51.000 --> 0:02:54.240 at activity in each of the Federal Reserve districts. I 0:02:54.280 --> 0:02:58.480 think for September, the most important district is Kansas City. 0:02:58.800 --> 0:03:01.919 Jeffrey schmid Of voter president of the Federal Reserve Bank 0:03:02.080 --> 0:03:05.880 of Kansas City. Right now, we're seeing that economic activity 0:03:05.919 --> 0:03:11.119 was generally flat, employment declined modestly, wage pressures remains subdued. 0:03:11.600 --> 0:03:13.800 All of those factors might mean that one of the 0:03:13.800 --> 0:03:17.440 most hawkish voters on the committee could be a little 0:03:17.440 --> 0:03:21.120 bit more open to the idea of voting for a cut. 0:03:21.320 --> 0:03:24.919 You could see that true coalition building around exactly what 0:03:25.040 --> 0:03:30.400 Governor Waller wants. What San Francisco Fed President Daily has 0:03:30.440 --> 0:03:32.800 said she's wide open to and that's a cut at 0:03:32.840 --> 0:03:33.639 this upcoming US. 0:03:33.639 --> 0:03:35.600 Are you saying because he's been so hawkish and then 0:03:35.640 --> 0:03:38.680 he's seeing moderate activity, that that's why this is an 0:03:38.680 --> 0:03:40.720 interesting Fed governor to focus on. 0:03:40.920 --> 0:03:43.280 That's exactly right. He's one of the he is, by 0:03:43.360 --> 0:03:47.360 our natural language processing tools, the most hawkish member of 0:03:47.360 --> 0:03:51.960 the committee. He is a voter, and conditions locally are weak, 0:03:52.160 --> 0:03:55.480 conditions locally likely warrants a cut in his eyes. 0:03:55.640 --> 0:03:59.480 Do conditions locally inform the way that voting members of 0:03:59.480 --> 0:04:03.200 the federal who represents certain districts will vote is that 0:04:03.240 --> 0:04:07.560 their responsibility is that their job to represent their districts. 0:04:07.920 --> 0:04:11.360 It's not specifically enumerated in the Federal Reserve Act that 0:04:11.400 --> 0:04:15.040 they must set policy according to conditions locally. But the 0:04:15.080 --> 0:04:17.760 reason why the districts are divided up the way they 0:04:17.800 --> 0:04:20.400 are so that everybody around the country has someone who 0:04:20.520 --> 0:04:24.600 is representing their interest. And similarly, there are requirements on 0:04:25.000 --> 0:04:29.200 the Board of Governors that the composition of the governors 0:04:29.360 --> 0:04:32.520 are supposed to represent conditions around the country. So these 0:04:32.560 --> 0:04:37.240 are important qualitative aspects of local conditions that feed into 0:04:37.279 --> 0:04:40.479 the decision making process. Do we know for certain how 0:04:40.520 --> 0:04:43.039 any one person is going to vote no. Certainly not. 0:04:43.240 --> 0:04:47.080 But when we see conditions cooling in a district that 0:04:47.320 --> 0:04:49.840 is presided over by one of the more hawkish members, 0:04:49.839 --> 0:04:52.080 you would think they might start pivoting a little bit 0:04:52.120 --> 0:04:54.760 more dubbish. And we can see that coalition building around 0:04:54.760 --> 0:04:55.080 the cuts. 0:04:55.279 --> 0:04:58.159 Let's not forget we get some inflation prints before the 0:04:58.160 --> 0:05:00.560 next ved decision, we get the monthly jobs on FREDA. 0:05:00.600 --> 0:05:03.200 There's a lot that still could come to the Fed 0:05:03.240 --> 0:05:05.680 that could impact their decision. The other thing, though, and 0:05:05.760 --> 0:05:08.120 let me just roll this into it, Stewart, this possible 0:05:08.200 --> 0:05:11.320 legal rollback of tariffs, which could be this is a 0:05:11.600 --> 0:05:15.000 major uncertainty. I know the President said yesterday some urgency 0:05:15.040 --> 0:05:17.440 to make this decision, like, let's figure this out sooner 0:05:17.520 --> 0:05:20.400 rather than later. Is the FED going to err on 0:05:20.440 --> 0:05:23.279 the side of holding off on any kind of move 0:05:23.320 --> 0:05:26.760 because there is still some uncertainty? Are there enough evidence, 0:05:26.880 --> 0:05:29.360 are a growing number of evidence that the economy is 0:05:29.400 --> 0:05:31.960 slowing that it does make sense to cut rates of 0:05:32.000 --> 0:05:32.480 some sort. 0:05:32.720 --> 0:05:35.160 I think that there is enough evidence that it's been 0:05:35.160 --> 0:05:38.440 accumulated when you look across the broad swath of indicators, 0:05:38.440 --> 0:05:42.839 whether it's real wage growth, whether it's the pace of hiring, 0:05:43.800 --> 0:05:46.000 whether it's some of the anecdotal data that we're getting 0:05:46.040 --> 0:05:48.200 just today that a cut is warrant to the question 0:05:48.279 --> 0:05:49.960 is whether they want to do it in September or 0:05:50.000 --> 0:05:51.360 whether they want to do it a little bit further 0:05:51.400 --> 0:05:54.159 down the line. From an economic perspective, it doesn't matter 0:05:54.360 --> 0:05:57.839 that much. They could wait until December if they wanted to, 0:05:57.839 --> 0:06:00.000 They could wait until twenty sixteen if they want to. 0:06:00.279 --> 0:06:00.479 Two. 0:06:00.800 --> 0:06:03.920 But it looks like the coalition probably is there based 0:06:03.920 --> 0:06:05.880 on the data that we're seeing, based on the anecdotes 0:06:05.920 --> 0:06:07.640 that we're seeing, to deliver a cut in September. 0:06:07.680 --> 0:06:11.120 Steven Maron right, we've got hearing tomorrow. President Trump is 0:06:11.200 --> 0:06:13.440 very eager to get him in place on the FED board. 0:06:13.480 --> 0:06:16.440 How might that change some of the composition and change 0:06:16.440 --> 0:06:19.000 all of the discussions that happen around the table at 0:06:19.000 --> 0:06:19.279 the FED. 0:06:19.520 --> 0:06:22.000 You know that you'd get another voice that's advocating for 0:06:22.040 --> 0:06:25.080 a cut, and I expect that he will be confirmed 0:06:25.160 --> 0:06:28.839 in time to vote on the seventeenth. And again, it's 0:06:28.880 --> 0:06:30.440 just part of that coalition that's building. 0:06:30.520 --> 0:06:32.719 All right, We're going to leave it there. So appreciated 0:06:32.720 --> 0:06:35.560 our own Stuart paul Us and candidate economist at Bloomberg 0:06:35.600 --> 0:06:37.760 Economics right here in our studio. 0:06:38.040 --> 0:06:38.760 Stay with us. 0:06:38.839 --> 0:06:41.760 More from Bloomberg Business Week Daily coming up after this. 0:06:46.600 --> 0:06:50.440 You're listening to the Bloomberg Business Week Daily Podcast. Catch 0:06:50.520 --> 0:06:53.200 us live weekday afternoons from two to five East during 0:06:53.400 --> 0:06:57.320 Listen on Applecarplay and Android Auto with the Bloomberg Business app, 0:06:57.520 --> 0:06:59.599 or watch us live on YouTube. 0:07:00.160 --> 0:07:02.040 It's a crypto because there is lots of news happening 0:07:02.120 --> 0:07:05.080 in the world of crypto. Michael Novogratz's Galaxy Digital is 0:07:05.120 --> 0:07:07.880 offering a version of its Nasdaq list and shares that 0:07:07.920 --> 0:07:10.840 can be traded on the Salona blockchain, aiming to spur 0:07:11.000 --> 0:07:15.920 similar tokenization efforts, and an update on the WLFI token. 0:07:16.280 --> 0:07:18.320 We talked about this a lot yesterday on Bloomberg. Crypto 0:07:18.360 --> 0:07:21.520 promoted by the President's Family, which launched with ambitions of 0:07:21.560 --> 0:07:24.400 serving as the backbone of a new digital ecosystem, It 0:07:24.480 --> 0:07:27.320 became mired in turbulence and instability within an hour, so 0:07:27.840 --> 0:07:31.000 that's something we're watching closely. For more on crypto, we 0:07:31.040 --> 0:07:33.960 are joined by Jamie Leverton, CEO of Reserve One. Jamie 0:07:34.000 --> 0:07:37.120 joins us here in the Bloomberg Interactive Broker's studio. Jamie 0:07:37.160 --> 0:07:42.000 Reserve one calls itself quote an equity vehicle offering institutional 0:07:42.200 --> 0:07:46.760 great access without the complexity of direct crypto ownership. 0:07:47.160 --> 0:07:48.120 Unpack that for us. 0:07:48.680 --> 0:07:51.920 Yeah, So, I think one of the guiding principles when 0:07:51.920 --> 0:07:54.679 we thought about how to how to build the company 0:07:54.720 --> 0:07:58.920 and really offer something to investors that they can't access 0:07:58.960 --> 0:08:04.360 today in an equity vehicle. So we thought about the 0:08:04.360 --> 0:08:07.600 company and built it so that it gives almost one 0:08:07.680 --> 0:08:10.520 stop shop, if you will, to crypto exposure, but in 0:08:10.560 --> 0:08:14.360 a traditional equity So we're expecting to be eighty percent 0:08:14.400 --> 0:08:18.640 Bitcoin and then twenty percent in alternative assets that are 0:08:18.680 --> 0:08:21.840 really inspired by the digital asset stockpile and what we 0:08:21.880 --> 0:08:23.680 expect to see in that stock. 0:08:23.560 --> 0:08:25.880 What are some of those alternatives. 0:08:25.440 --> 0:08:29.840 So expecting Ethereum, Solana, Ada, and XRP. Those of those 0:08:29.880 --> 0:08:32.000 have been the tokens that have been named so far. 0:08:33.280 --> 0:08:35.760 We do expect other tokens to be added to the 0:08:35.760 --> 0:08:38.959 stockpile as that gets refined over the coming months. 0:08:39.120 --> 0:08:42.559 What determines whether or not a digital currency is added 0:08:42.600 --> 0:08:43.880 to the stockpile. 0:08:43.600 --> 0:08:44.520 That's a great question. 0:08:44.920 --> 0:08:48.680 We aren't aware of the methodology that they're that they're using, 0:08:49.080 --> 0:08:51.360 or how they're thinking about what is going to be 0:08:51.440 --> 0:08:55.560 maintained in the stockpile. But the way we think about it, 0:08:55.559 --> 0:08:58.760 it's inspired by the digital asset stockpile, but we put 0:08:58.760 --> 0:09:01.840 our own mechanism and how we weight the assets that 0:09:01.880 --> 0:09:02.599 we hold. 0:09:02.480 --> 0:09:05.600 Kind of makes sense because you're tracking something that you know, 0:09:05.679 --> 0:09:09.319 there's always been like insider buy strategies or and now 0:09:09.400 --> 0:09:12.960 with politicians there's like the you know, follow the what 0:09:13.040 --> 0:09:16.520 the politicians are buying. There's those ETFs, so as we're 0:09:16.559 --> 0:09:18.520 reminded all the time, there is an ETF for everything. 0:09:18.600 --> 0:09:20.040 Well, so you know, then we have to ask you 0:09:20.760 --> 0:09:25.920 the WLFI token, the presidential token, will that be added? 0:09:27.200 --> 0:09:29.920 We are not hearing any rumblings that it's expected to 0:09:29.960 --> 0:09:33.080 be added to the stockpile. Certainly, the tokens that have 0:09:33.240 --> 0:09:35.760 been mentioned are the ones that have been been around 0:09:35.800 --> 0:09:38.880 a long time. They've got they're in the top twenty 0:09:39.160 --> 0:09:43.760 of tokens worldwide, they have significant free flow market cap, 0:09:44.000 --> 0:09:48.360 So unlikely that those newer tokens would be added to 0:09:48.400 --> 0:09:50.679 the stockpile at this point in time, although you. 0:09:50.679 --> 0:09:53.280 Never know how far are you from the target of 0:09:53.320 --> 0:09:54.559 a billion dollar raise. 0:09:55.000 --> 0:09:59.000 So we announced in combination with our business combination agreement 0:09:59.040 --> 0:10:01.320 back in July that we seven hundred and fifty million 0:10:01.360 --> 0:10:04.439 dollars in a pipe and then in this BAC trust 0:10:04.559 --> 0:10:07.560 there's two hundred and eighty seven point five million. So 0:10:07.600 --> 0:10:10.200 we are going to go through the process with the 0:10:10.280 --> 0:10:13.400 SEC to get to get final approval and then hopefully 0:10:13.480 --> 0:10:15.800 we'll be trading under our new ticker by by the 0:10:15.920 --> 0:10:18.320 end of the year. How much of that is cash, 0:10:18.360 --> 0:10:21.800 so the funding happens at close it initially it'll it'll 0:10:21.840 --> 0:10:25.560 all be cash and then it gets converted right away. 0:10:25.840 --> 0:10:29.160 I put in air quotes into into digital assets. It 0:10:29.200 --> 0:10:30.600 won't be instantaneous, of course. 0:10:30.640 --> 0:10:33.000 How do you make sense between the tokens that you 0:10:33.080 --> 0:10:35.840 think have legs and longevity or something. I don't know 0:10:35.920 --> 0:10:36.800 if that might. 0:10:36.640 --> 0:10:41.440 Not so, I mean meme coins were kind of all 0:10:41.559 --> 0:10:45.319 the rage the last the past year. When we when 0:10:45.360 --> 0:10:49.439 we think about it, it's really what is the utility 0:10:49.480 --> 0:10:53.240 of the token, what's the ecosystem of developers that are 0:10:53.240 --> 0:10:57.280 building on chain, what's the what does the free float 0:10:57.320 --> 0:11:00.000 market cap look like? What's the ability to generate returns 0:11:00.360 --> 0:11:03.199 on those tokens? Because we will be looking to generate 0:11:03.280 --> 0:11:05.720 revenue from the assets that we hold on our balance sheet, 0:11:06.040 --> 0:11:08.040 which is which is unique from from some of the 0:11:08.080 --> 0:11:09.200 other players in the space. 0:11:09.640 --> 0:11:14.120 What's the profile of investors thus far, the mostly cryptonative funds. 0:11:14.600 --> 0:11:15.560 That came into the pie. 0:11:15.880 --> 0:11:18.280 Yeah, a mix of a mix of strategic, high networth 0:11:18.440 --> 0:11:22.440 cryptonative people that we commonly see in the space. As 0:11:22.480 --> 0:11:23.960 I think you guys know, I was the CEO of 0:11:24.000 --> 0:11:25.520 HT eight for a number of years. 0:11:25.760 --> 0:11:26.840 It's a lot of a lot. 0:11:26.679 --> 0:11:30.319 Of familiar faces around around the digital asset treasury. 0:11:30.080 --> 0:11:33.200 Space that we should be aware of, so we did. 0:11:33.240 --> 0:11:35.520 We did name a number of our strategic partners in 0:11:35.520 --> 0:11:38.840 the press release when we announced you might you mentioned 0:11:38.840 --> 0:11:44.720 Mike Novagrats Galaxy Digital key partner of ours. Yes, well, 0:11:44.760 --> 0:11:46.520 Mike was spent a lot of time on the Canadian 0:11:46.559 --> 0:11:48.800 Exchange and actually used used to be on the board 0:11:48.800 --> 0:11:51.120 of HUT eight prior to to my taking over as CEO. 0:11:51.200 --> 0:11:53.880 So lots of connective tissue. We worked with Galaxy when 0:11:53.880 --> 0:11:54.720 I was at HUT. 0:11:54.480 --> 0:11:56.320 For for yield generation on bitcoin. 0:11:56.679 --> 0:11:59.520 There are there are a great longtime partner and certainly 0:11:59.840 --> 0:12:01.280 a friend of the firm for sure. 0:12:01.400 --> 0:12:04.640 Jimmy talk to us about the White House and the 0:12:04.679 --> 0:12:10.040 government and the government's plan to buy bitcoin or expectations 0:12:10.080 --> 0:12:12.800 that they would. How do you think do you think 0:12:12.800 --> 0:12:14.960 that's going to actually happen? How will they fund it? Like, 0:12:15.080 --> 0:12:16.640 how do you see that kind of rolling out? 0:12:16.840 --> 0:12:18.760 Yeah, I mean they've been pretty clear that they want 0:12:18.800 --> 0:12:20.640 to find a way to do it in a in 0:12:20.679 --> 0:12:23.240 a budget neutral way. So far the bitcoin that they 0:12:23.280 --> 0:12:26.480 hold is through confiscation. I think we're not going to 0:12:26.679 --> 0:12:30.800 really get more clarity on their intentions around the strategic 0:12:31.080 --> 0:12:34.520 point bitcoin Reserve or the digital Asset stockpile until we 0:12:34.559 --> 0:12:38.400 get clarity through I think the focus really within the 0:12:38.440 --> 0:12:41.720 space and within Washingtonton is to get the Clarity Act passed, 0:12:41.960 --> 0:12:45.320 which really gives us the regulatory framework we need for 0:12:45.400 --> 0:12:48.160 the for the alternative tokens. It's it's been clear for 0:12:48.200 --> 0:12:52.520 a while the bitcoin's treated as a commodity ethereum likely 0:12:52.760 --> 0:12:54.559 is as well, but for the rest of the space, 0:12:54.600 --> 0:12:58.640 we really need that Clarity Act to finalize the regulatority 0:12:58.720 --> 0:13:01.280 clarity for the space, for the space that Genius gave 0:13:01.320 --> 0:13:02.439 us for stable coins. 0:13:02.200 --> 0:13:04.520 Which I with Jamie Leverton, she's CEO of Reserve one 0:13:04.520 --> 0:13:06.679 here in our Bloomberg Interactive Broker studio. Do you think 0:13:06.679 --> 0:13:10.080 we're in a moment in time because of this administration, 0:13:10.400 --> 0:13:13.600 and that another administration in three and a half years 0:13:14.080 --> 0:13:15.840 could change the environment for crypto. 0:13:16.400 --> 0:13:18.600 Three and a half years in crypto is a very 0:13:18.880 --> 0:13:23.520 very long period of time. I was here during Genzo's regime. 0:13:24.360 --> 0:13:27.400 It was certainly a much much different environment, really really 0:13:27.400 --> 0:13:29.559 difficult for those of us operating in the space in 0:13:29.600 --> 0:13:32.840 the public markets to get things through the SEC. I 0:13:32.840 --> 0:13:35.640 think certainly a very very welcome turn of events for 0:13:35.720 --> 0:13:39.800 the industry with the progress that we're seeing at the 0:13:39.800 --> 0:13:42.240 federal level as well as across the regulatory space. 0:13:42.480 --> 0:13:45.040 So are you saying that it could change or you 0:13:45.080 --> 0:13:47.080 think like the train has left the station in terms 0:13:47.160 --> 0:13:49.760 of crypto or could be in three and a half years, 0:13:49.800 --> 0:13:51.920 depending on who's in the White House and the composition 0:13:51.960 --> 0:13:53.319 of Congress, could things. 0:13:53.640 --> 0:13:57.720 It's possible, But Genius went through properly bipartisan right Seventeen 0:13:57.760 --> 0:14:01.400 Democrats joined Republicans to get together Genius through. I think 0:14:01.440 --> 0:14:04.360 as an industry we've been very very careful to keep 0:14:04.360 --> 0:14:06.959 it by partisan and I think more and more Democrats 0:14:06.960 --> 0:14:09.640 are getting on board with just what this could really 0:14:09.679 --> 0:14:11.920 mean for the future of innovation for the United States, 0:14:11.960 --> 0:14:13.559 and and I hope it stays that way. 0:14:13.559 --> 0:14:16.120 I hope the horse has has indeed left the barn. 0:14:16.280 --> 0:14:19.480 Well on politics in DC, Wilbe Ross, the former Secretary 0:14:19.480 --> 0:14:23.720 of Commerce, is vice chair of the company, vice chairman 0:14:23.800 --> 0:14:27.000 of Reserve one. What is his involvement, what is his input? 0:14:27.400 --> 0:14:28.160 Yeah, Wilbert. 0:14:28.360 --> 0:14:31.960 Wilbert has been absolutely great. He's the anticipated vice chair. Obviously, 0:14:32.040 --> 0:14:36.000 nothing's official until until we get through approvals. He was 0:14:36.040 --> 0:14:41.280 formerly a skeptic of crypto and really I think seeing 0:14:41.320 --> 0:14:46.760 the regulatory framework change, getting getting clear clear UH policies, 0:14:46.960 --> 0:14:50.600 and then understanding of how this how this space can really. 0:14:50.440 --> 0:14:52.680 Evolve in a way that's more more grown up. 0:14:53.160 --> 0:14:56.400 And I think we've assembled a team that is UH 0:14:56.440 --> 0:14:58.680 that is unique in this space, a ton of public 0:14:59.320 --> 0:15:03.880 public company experience, Washington experience, Wall Street experience. We're probably 0:15:03.920 --> 0:15:08.080 one of the more seasoned management teams and board of directors. 0:15:08.080 --> 0:15:10.720 And I think that gave him comfort. He was really 0:15:10.760 --> 0:15:13.120 curious and wanted to learn and dive into the space 0:15:13.240 --> 0:15:16.400 and thought what we were building was was really really unique, 0:15:16.480 --> 0:15:18.880 and he was ready to join and go on the 0:15:18.960 --> 0:15:22.800 journey with us. He's been incredibly incredibly supportive. We're very 0:15:23.120 --> 0:15:23.920 lucky to have him. 0:15:24.160 --> 0:15:26.040 Is he owning more crypto as a result. 0:15:28.000 --> 0:15:29.440 I'm certain that is the case. 0:15:30.640 --> 0:15:32.760 So lay out the next six months, twelve months in 0:15:32.840 --> 0:15:35.600 this space. What are you kind of watching out for. 0:15:35.880 --> 0:15:39.680 Yeah, I think I think we're all watching Washington really 0:15:39.720 --> 0:15:43.640 really carefully hopeful as an ecosystem that clarity gets done 0:15:43.640 --> 0:15:46.040 by the end of the year, and then I think 0:15:46.080 --> 0:15:50.160 we'll see the alternative digital assets have. 0:15:50.600 --> 0:15:51.720 Their moment in the sun. 0:15:52.640 --> 0:15:55.240 Really waiting for that, for that regulatory clarity, I think 0:15:55.240 --> 0:15:57.600 it'll bring a halo to that, to that segment of 0:15:57.680 --> 0:16:01.400 digital assets. And lots of lots of treasury companies have 0:16:01.480 --> 0:16:05.760 come out similar to Reserve one where the funding doesn't 0:16:05.760 --> 0:16:07.360 come to close and then we have to we have 0:16:07.440 --> 0:16:09.480 to buy the assets at that time. So a lot 0:16:09.480 --> 0:16:12.520 of pent up demands still in the crypto ecosystem that 0:16:12.880 --> 0:16:16.240 should prove favorable over the next three to six months. 0:16:16.320 --> 0:16:18.160 One of the most read stories on the Bloomberg terminal 0:16:18.200 --> 0:16:20.320 is about Eric Trump's wealth soaring on a six hundred 0:16:20.320 --> 0:16:23.840 million dollar American bitcoin steak. We are going to hear 0:16:23.840 --> 0:16:26.840 from Eric Trump on Bloomberg TV in a few minutes. 0:16:27.360 --> 0:16:30.280 The article says that the company will says it will 0:16:30.320 --> 0:16:33.200 accumulate bitcoin using machinery in New York, Alberta, and Texas 0:16:33.200 --> 0:16:35.720 provided by another crypto company called HUT eight. 0:16:35.880 --> 0:16:38.560 That is correct. Yeah, so HUT eight spun out. 0:16:38.600 --> 0:16:42.600 They are big proprietary bitcoin mining operations to form what 0:16:42.720 --> 0:16:47.320 is now and officially trading today American bitcoin money. 0:16:48.840 --> 0:16:51.280 When they say they're accumulating bitcoin that way, that means 0:16:51.280 --> 0:16:53.120 they're technically mining it. 0:16:53.240 --> 0:16:55.760 Yeah, they're mining and hobbling, just like we were doing 0:16:55.760 --> 0:16:57.320 it HUT back in twenty twenty one. 0:16:57.560 --> 0:16:59.760 How much of an opportunity is left there though, versus 0:17:00.280 --> 0:17:02.000 just going out and buying it on the open market. 0:17:02.200 --> 0:17:05.240 Well, certainly when you have when you're a low cost 0:17:05.280 --> 0:17:10.359 operator like HUT eight are now American bitcoin mining, you're 0:17:10.520 --> 0:17:12.720 able to put bitcoin in balance, you will below the 0:17:12.760 --> 0:17:14.520 cost of acquiring and. 0:17:14.480 --> 0:17:15.560 You're on tract Republic. 0:17:16.800 --> 0:17:19.760 So we are pending SEC approval and then we would 0:17:19.920 --> 0:17:22.440 list on the NASDAC through the dsback process. 0:17:22.200 --> 0:17:24.440 And that expecting still to happen in the fourth quarter 0:17:24.480 --> 0:17:27.800 of this Shit's right, Yeah right, good stuff. Stay in touch, 0:17:27.920 --> 0:17:30.160 Thank you, Yeah, always good to be here. Really appreciate 0:17:30.200 --> 0:17:33.159 it and thanks. Jamie Leverton, she's CEO of Reserved One, 0:17:33.240 --> 0:17:35.560 joining us here in our Bloomberg Interactive Brokers Studio. 0:17:37.040 --> 0:17:37.840 Stay with us. 0:17:37.880 --> 0:17:46.080 More from Bloomberg Business Week Daily coming up after this. 0:17:46.080 --> 0:17:50.240 This is the Bloomberg Business Week Daily Podcast. Listen live 0:17:50.320 --> 0:17:53.440 each weekday starting at two pm Eastern on Apple Cocklay 0:17:53.440 --> 0:17:56.240 and Android Auto with the Bloomberg Business App. You can 0:17:56.280 --> 0:17:59.679 also listen live on Amazon Alexa from our flagship New 0:17:59.800 --> 0:18:04.960 York station, Just say Alexa Play Bloomberg eleven thirty. 0:18:04.960 --> 0:18:05.240 Folks. 0:18:05.280 --> 0:18:08.359 We're going to kind of stay with our major backdrop 0:18:08.440 --> 0:18:10.280 and go kind of from the economy to what this 0:18:10.320 --> 0:18:12.960 all means for the financial market backdrop. We've got a 0:18:13.000 --> 0:18:14.880 great guest. We want to get into how the data, 0:18:14.920 --> 0:18:18.240 the White House, the geopolitics continue to shape the investment environment, 0:18:18.440 --> 0:18:20.320 and we do have a good voice on that. Jason 0:18:20.320 --> 0:18:22.399 Granite is with us Chief Investment Officer b and Y 0:18:22.680 --> 0:18:24.560 here in studio. Great to be with you. 0:18:24.640 --> 0:18:26.760 How are you, Oh, Great to be with you since 0:18:26.840 --> 0:18:28.560 last time I saw you. Hope you enjoyed your summer. 0:18:28.720 --> 0:18:31.080 I've had good summer. I can't believe it's September. I'm 0:18:31.160 --> 0:18:33.480 kind of bracing for what September might bring. 0:18:33.600 --> 0:18:35.359 Yeah, back to school has kind of hit me over 0:18:35.400 --> 0:18:36.000 the head as well. 0:18:36.640 --> 0:18:38.720 Exactly for the first time, I don't have somebody going 0:18:38.760 --> 0:18:41.080 back to school in a while. Tell me how you're thinking, 0:18:41.119 --> 0:18:42.879 because I go back to when we were together in 0:18:42.960 --> 0:18:46.280 June at Inside b and Y Inside twenty twenty five. 0:18:46.440 --> 0:18:50.200 You and I spoke up on the stage after Kelly 0:18:50.200 --> 0:18:52.760 and Conway's senior counselor to the President, and we talked 0:18:52.760 --> 0:18:55.040 a lot about presidential policies and what it means for 0:18:55.080 --> 0:18:59.880 the investment environment. What's changed in you know, since early 0:19:00.200 --> 0:19:03.480 June to now in terms of the investment environment and 0:19:03.520 --> 0:19:07.560 how presidential policies backing it, has it gotten more certain 0:19:07.680 --> 0:19:08.360 less uncertain? 0:19:08.680 --> 0:19:12.160 So, first of all, a lot has changed and nothing 0:19:12.200 --> 0:19:14.720 has changed all at the same time. Right, we still 0:19:14.760 --> 0:19:20.080 have a very fast paced, fluid policy environment where it 0:19:20.119 --> 0:19:22.880 feels like every day or every few hours, there's some 0:19:22.960 --> 0:19:25.800 other news to digest and process and what that means 0:19:25.840 --> 0:19:28.280 for markets. On the flip side, we have a lot 0:19:28.280 --> 0:19:29.840 more certainty because a lot of tales and a lot 0:19:29.840 --> 0:19:32.280 of weird outcomes have been taken out off the table. 0:19:32.880 --> 0:19:35.560 And so one thing that's amazing to me is the 0:19:35.600 --> 0:19:37.960 twenty weeks leading up to right before Labor Day was 0:19:38.000 --> 0:19:41.240 the single biggest drop in the Vicks ever over twenty 0:19:41.320 --> 0:19:45.439 week period. So you go back twenty weeks from the 0:19:45.560 --> 0:19:48.080 early spring through the end of the summer, and to 0:19:48.119 --> 0:19:51.199 think about all the things that happened to have the 0:19:51.240 --> 0:19:54.640 greatest drop in volatility over that period is kind of amazing. 0:19:54.960 --> 0:19:58.000 That's an amazing good amazing bank completely always makes me 0:19:58.000 --> 0:19:58.639 a little nervous. 0:19:58.800 --> 0:20:01.600 Yes, but we've also seen rec at highs in assets. 0:20:01.600 --> 0:20:04.520 You've seen some other things. Now, one big trend has 0:20:04.600 --> 0:20:07.160 taken hold on the curve, and that's the curve's gotten 0:20:07.240 --> 0:20:11.480 much steeper in the month of August alone, two ten's 0:20:11.720 --> 0:20:14.159 we went from forty to sixty. You know, that's a 0:20:14.200 --> 0:20:17.359 pretty that's a proper move over the course of a month, 0:20:17.600 --> 0:20:19.639 and so you have steeple curves. I heard you just 0:20:19.720 --> 0:20:23.520 discussing with your economist here, obviously because we're expecting he's 0:20:23.600 --> 0:20:26.280 in cycled to start here in the US. I think, 0:20:26.320 --> 0:20:29.359