WEBVTT - Markets, Ukraine, and Higher Ed 0:00:00.840 --> 0:00:04.000 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.080 --> 0:00:06.960 my co host Matt Miller. Every business day we bring 0:00:07.000 --> 0:00:11.560 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:13.600 with essential market moven news. 0:00:14.160 --> 0:00:17.279 Find the Bloomberg Markets podcast called Apple Podcasts or wherever 0:00:17.400 --> 0:00:20.520 you listen to podcasts, and at Bloomberg dot com slash podcast. 0:00:21.040 --> 0:00:22.880 All right, so let's see if it matters to Fill Orlando, 0:00:22.960 --> 0:00:26.239 chief Equity strategis of It Federated Hermez joining us to 0:00:26.280 --> 0:00:28.520 talk about that. Feel so good to have you here 0:00:28.680 --> 0:00:32.120 on Bloomberg with Billy and myself. What is it that 0:00:32.280 --> 0:00:34.520 you find interesting and what are you seeing in terms 0:00:34.560 --> 0:00:35.960 of trends and flows right now? 0:00:37.400 --> 0:00:39.839 First of all, thank you very much for having me 0:00:39.960 --> 0:00:47.199 back on. We were expecting that the powerful rally that we 0:00:47.320 --> 0:00:51.599 saw in the equity market, largely driven by that you know, 0:00:51.800 --> 0:00:54.800 relatively narrow group of eight technology stocks in the first 0:00:54.840 --> 0:00:57.360 seven months of the year, that there was going to 0:00:57.400 --> 0:01:00.600 be a reversion of the mean. And you know, certainly 0:01:00.760 --> 0:01:03.800 the August, September, October time frame is as good as 0:01:03.880 --> 0:01:08.319 any for that to occur, and so we thought the 0:01:08.400 --> 0:01:11.080 pullback might take the s and p back down about 0:01:11.080 --> 0:01:13.319 the forty two hundred level, or so let's call it 0:01:13.360 --> 0:01:17.560 a ten twelve percent correction. A good chunk of that 0:01:17.600 --> 0:01:22.240 has happened, and certainly the backup and interest rates you know, 0:01:22.319 --> 0:01:25.199 benchmark tens going from you know, three and a half 0:01:25.200 --> 0:01:28.280 percent up into the four and a half percent neighborhood 0:01:28.360 --> 0:01:31.120 here over the last couple of months has facilitated that. 0:01:31.520 --> 0:01:33.840 The thing that I find really interesting when you talk 0:01:33.880 --> 0:01:37.280 about flows, and I'm going to throw in a little 0:01:37.280 --> 0:01:41.600 bit of amateur technical analysis here, is that our bond 0:01:41.600 --> 0:01:46.200 guys tell us that once the benchmark tens broke about 0:01:46.200 --> 0:01:50.280 the four thirty five level or thereabouts on yield, there 0:01:50.320 --> 0:01:54.040 really wasn't a lot of overhead resistance until you get 0:01:54.080 --> 0:01:57.040 up to a five handle. So it's interesting that you've, 0:01:57.280 --> 0:01:59.760 you know, you hear a lot of the you know 0:02:00.280 --> 0:02:04.360 experts and well known people in recent days talking about 0:02:04.360 --> 0:02:06.760 the fact that they wouldn't be surprised to see treasuries 0:02:06.800 --> 0:02:08.240 at five percent. 0:02:08.840 --> 0:02:11.239 For six or seven or well. 0:02:12.000 --> 0:02:13.840 I don't know that I'm willing to step in front 0:02:13.840 --> 0:02:17.960 of that freight train just yet, but certainly it's interesting 0:02:18.000 --> 0:02:21.840 that our duration committee is not adding to duration lengthening 0:02:21.919 --> 0:02:24.959 duration here, you know, with this big move up into 0:02:25.040 --> 0:02:27.640 the four and a half percent neighborhood, I sort of 0:02:27.639 --> 0:02:30.480 think they they're sort of seeing that a five percent 0:02:30.560 --> 0:02:33.919 number is reality, and let's let's cool our jets a 0:02:33.919 --> 0:02:36.440 little bit until we get a little bit better feel 0:02:36.480 --> 0:02:37.120 for what's going on. 0:02:38.600 --> 0:02:41.680 Yeah, And so, looking at some of the major averages 0:02:41.720 --> 0:02:43.880 so far this year, the equal weight to S and 0:02:43.919 --> 0:02:46.200 P five hundred is now actually read on the year. 0:02:46.800 --> 0:02:49.519 This is obviously the SMP still up eleven percent. 0:02:49.919 --> 0:02:51.400 Where are you putting money to work? And what do 0:02:51.440 --> 0:02:51.960 you make of that? 0:02:52.080 --> 0:02:55.000 Just given the magnificent seven for better or worse, is 0:02:55.040 --> 0:02:57.440 still holding major averages higher. 0:02:58.360 --> 0:03:00.919 Well, if you look at the perform of the equity 0:03:00.960 --> 0:03:03.400 market over the course of the last couple of months 0:03:03.480 --> 0:03:09.040 since this correction started, the growthier technology oriented names disproportionately 0:03:09.080 --> 0:03:10.880 are the ones that are giving up some of the games, 0:03:10.880 --> 0:03:13.880 and that makes perfect sense. The areas that we like, 0:03:14.040 --> 0:03:17.280 that we've liked have been the areas that were left 0:03:17.320 --> 0:03:19.239 for dead in the first seven months of the year. 0:03:20.080 --> 0:03:27.200 Domestic large cap value, smaller cap names, international names, stocks 0:03:27.200 --> 0:03:33.239 that have lower valuation profiles, higher dividend yield support and 0:03:33.680 --> 0:03:36.800 we see that rotation. So energy, for example, which has 0:03:36.840 --> 0:03:39.760 been one of our favorite categories. You couldn't give that 0:03:39.840 --> 0:03:42.200 stuff away in the first six months of the year. 0:03:42.440 --> 0:03:45.400 Now everyone loves energy. Well, you know, crude oil has 0:03:45.440 --> 0:03:48.360 also gone from the mid sixties into the low nineties 0:03:49.080 --> 0:03:52.960 over the last three or four months. Again based upon 0:03:53.960 --> 0:03:57.240 you know, technical analysis or momentum or whatever. Some folks 0:03:57.280 --> 0:03:59.200 are now saying, well, you know, crew's going to get 0:03:59.200 --> 0:04:03.480 to one hundred. The fundamentals Back in June, when crude 0:04:03.480 --> 0:04:05.800 was sitting at sixty five dollars a barrel told us 0:04:05.800 --> 0:04:09.480 that we could get to eighty or ninety. We're there 0:04:10.160 --> 0:04:12.920 probably earlier than we thought. And now we're starting to 0:04:12.920 --> 0:04:15.880 get some momentum that may take crude back up to park. 0:04:16.839 --> 0:04:17.719 Yeah. 0:04:17.760 --> 0:04:19.800 It's kind of interesting, right, and we do talk about 0:04:19.800 --> 0:04:23.840 that certainly at Bloomberg in terms of the energy price impact. Hey, Phil, 0:04:23.880 --> 0:04:26.159 thank you so much, really appreciate it. Fill Orlando Chief 0:04:26.160 --> 0:04:29.360 Acrety strategist of it Federated Urmes joining us with his 0:04:29.440 --> 0:04:32.080 market out look. I'm Carol Masser along with Bailey Lipshelt. 0:04:32.120 --> 0:04:35.400 You are listening and watching Bloomberg Markets on this Monday, 0:04:35.680 --> 0:04:37.080 and this is Bloomberg Radio. 0:04:38.120 --> 0:04:41.520 You're listening to the Team Ken's our line program Bloomberg 0:04:41.560 --> 0:04:44.960 Markets weekdays at ten am Eastern on Bloomberg dot Com, 0:04:45.040 --> 0:04:48.160 the iHeartRadio app and the Bloomberg Business App, or listen 0:04:48.240 --> 0:04:50.480 on demand wherever you get your podcasts. 0:04:52.200 --> 0:04:54.520 Nancy Curtin and partner of Global C the head of 0:04:54.600 --> 0:04:58.839 the investment advisory at out the TEDAM and Global, Thanks 0:04:58.839 --> 0:04:59.640 for being with us today. 0:05:00.080 --> 0:05:00.359 Get it. 0:05:00.400 --> 0:05:03.039 You heard the Jamie Downing there mentioned what I did. 0:05:03.279 --> 0:05:07.680 They could handle seven to eight percent rates the ten 0:05:07.800 --> 0:05:11.160 year at four sixty five. That would appear to be 0:05:11.240 --> 0:05:15.280 at least partially in the driver's sea for equities. What 0:05:15.400 --> 0:05:19.040 is your outlook for rates and the impact on the 0:05:19.120 --> 0:05:20.120 risk assets? 0:05:21.200 --> 0:05:25.239 Well, look, you know, near term we're a bit cautious here, 0:05:25.320 --> 0:05:27.520 and we said to clients at the end of July 0:05:28.040 --> 0:05:30.560 that trees don't grow into the skies. You know, after 0:05:30.960 --> 0:05:33.640 twenty percent total return of the S and P five hundred, 0:05:33.720 --> 0:05:37.039 we needed to pull back a correction of consolidation. Okay, 0:05:37.600 --> 0:05:40.640 but if we look at the fundamentals, the reason that 0:05:40.680 --> 0:05:43.039 we have near term caution is what I call sort 0:05:43.080 --> 0:05:46.880 of a litany of triple loows. You know, the first 0:05:47.000 --> 0:05:49.880 is the higher rates that Jamie mentioned and that you've 0:05:49.920 --> 0:05:53.000 mentioned in your program. These higher rates are coming at 0:05:53.000 --> 0:05:57.120 the long end that sets the cost of capital for companies. 0:05:57.600 --> 0:06:00.880 So that's going higher. In part maybe it's about a 0:06:00.920 --> 0:06:04.240 long term view on structural inflation. It's also about a 0:06:04.360 --> 0:06:09.279 rising term premium. I think investors getting to grips with 0:06:09.400 --> 0:06:12.680 the size of the fiscal deficits. So you know, higher 0:06:12.720 --> 0:06:16.760 interest costs for companies and borrowers. You also have higher 0:06:16.800 --> 0:06:20.400 oil and that's a tax on the consumer. And finally 0:06:20.440 --> 0:06:23.599 you have a higher dollar and dollars up about seven 0:06:23.640 --> 0:06:25.680 percent from the July low. So I put those three 0:06:25.720 --> 0:06:28.520 things together. I've got a higher cost of capital, I've 0:06:28.520 --> 0:06:31.480 got a tax on the consumer, and I've got global tightening. 0:06:32.000 --> 0:06:36.680 So we do expect growth to slow. Growth to slow 0:06:36.800 --> 0:06:40.159 in the United States in particular, but by the way, 0:06:40.320 --> 0:06:43.440 that's no bad thing. The third quart of the United 0:06:43.480 --> 0:06:47.360 States growth has been accelerating here. Whether the number comes 0:06:47.400 --> 0:06:49.960 in at three percent or three and a half or 0:06:50.000 --> 0:06:52.320 two point six, it's going to be higher than the 0:06:52.360 --> 0:06:56.600 second quarter. And we do think it's important that growth slows, 0:06:57.040 --> 0:06:59.840 and that's part of what has to happen here to. 0:07:00.200 --> 0:07:03.839 Down inflation and Nancy. All we talk about seemingly is 0:07:03.880 --> 0:07:07.080 the Magnificent seven driving major indexes higher. When we look 0:07:07.120 --> 0:07:09.400 at some of the steam coming off of those big 0:07:09.440 --> 0:07:12.720 technology companies, where are you looking to put money to 0:07:12.760 --> 0:07:16.160 work in terms of growth sectors, growth assets, whether it's 0:07:16.320 --> 0:07:17.760 in the US or outside. 0:07:19.200 --> 0:07:21.400 So, first of all, as I said, a notive caution 0:07:21.560 --> 0:07:23.840 here near term, although I wouldn't be at all surprised 0:07:23.880 --> 0:07:26.240 to see a year end rally. But let's go back 0:07:26.240 --> 0:07:28.920 to the fundamentals that I just mentioned. We need to 0:07:28.960 --> 0:07:33.400 get inflation lower. We think it will grind lower as 0:07:33.440 --> 0:07:36.440 we head into twenty twenty four. And remember, for our 0:07:36.440 --> 0:07:38.720 clients who are long term investors, we're not trying to 0:07:38.760 --> 0:07:41.600 trade in trade out of the market anyway. That's fools erin. 0:07:42.560 --> 0:07:44.480 As you know, you missed the best days and markets, 0:07:44.480 --> 0:07:47.880 you miss Allian's share of the return. But as we 0:07:47.920 --> 0:07:50.720 look forward to twenty twenty four, we think there's a 0:07:50.960 --> 0:07:55.640 possibility of a soft landing, which is to say, central 0:07:55.680 --> 0:07:59.160 banks are able to get inflation low enough that they 0:07:59.160 --> 0:08:02.920 can dial back on this tightening cycle, ease a bit 0:08:02.920 --> 0:08:07.360 of financial conditions, and that can lead the groundwork for 0:08:07.400 --> 0:08:11.000 a bit more of a cyclical recovery, other parts of 0:08:11.040 --> 0:08:15.560 the market and economy that haven't participated doing better. And 0:08:15.600 --> 0:08:19.080 so yes, while we have US large cap everyone does 0:08:19.440 --> 0:08:22.400 know the S and P five hundred and the Magnificent 0:08:22.440 --> 0:08:25.680 seven are such a large component of the index. But 0:08:25.760 --> 0:08:29.640 we also have diversification and things like MidCap rest of 0:08:29.800 --> 0:08:33.760 world areas that trade at a thirty to forty percent 0:08:33.840 --> 0:08:37.160 discount to US large cap, and we think these are 0:08:37.200 --> 0:08:40.640 the areas if we can get a cyclical recovery next year. 0:08:41.120 --> 0:08:44.880 We see market breadth widening in these the areas in 0:08:44.920 --> 0:08:48.200 particular that will participate and as they said, trade at 0:08:48.320 --> 0:08:50.280 much more attractive valuations. 0:08:50.920 --> 0:08:54.000 Nancy, welcome to the fourth quarter, the end of the 0:08:54.000 --> 0:08:56.640 earnings recession. I mean, comparison's going to be a lot 0:08:56.679 --> 0:08:57.920 easier going forward, right. 0:08:59.080 --> 0:09:01.920 Well, not only that, but look, as I just mentioned, 0:09:01.960 --> 0:09:04.760 the third quarter growth has been pretty strong here, so 0:09:05.120 --> 0:09:08.240 we wouldn't be at all surprised to see third quarter 0:09:08.280 --> 0:09:12.200 earnings come in above expectations. And by the way, the 0:09:12.240 --> 0:09:14.600 people that have been wrong have been the top down 0:09:14.720 --> 0:09:17.320 and the strategists. The people that have been right have 0:09:17.440 --> 0:09:20.760 been largely the bottom up analysts, And if you look 0:09:20.800 --> 0:09:24.360 at analyst expectations, you know, and if you just give 0:09:24.400 --> 0:09:27.800 their price gain times the index weight, you know. According 0:09:27.800 --> 0:09:31.520 to factset, most analysts bottom up are expecting a pretty 0:09:31.559 --> 0:09:36.120 decent recovery over the next year. Now, critical to earnings 0:09:36.240 --> 0:09:38.600 are critical to market is that we actually see some 0:09:38.760 --> 0:09:42.080 positive earnings growth. That's our view that we'll get it. 0:09:42.320 --> 0:09:45.000 Whether we get to forty six to forty next year 0:09:45.280 --> 0:09:48.160 or something less or more than that remains to be seen. 0:09:48.360 --> 0:09:52.800 But positive earnings growth is absolutely critical here because markets 0:09:52.840 --> 0:09:55.800 have moved higher on price, we now need earnings not 0:09:55.960 --> 0:09:59.080 just to beat, you know, do better, less downside, less 0:09:59.080 --> 0:10:02.960 negative actually produce that positive earnings growth. But that is 0:10:03.040 --> 0:10:06.000 our view. Again, it remains to be seen, and like 0:10:06.040 --> 0:10:08.079 everybody else, will be watching the data. 0:10:08.320 --> 0:10:11.120 And Nancy soft landing, is it possible? What are you 0:10:11.200 --> 0:10:13.560 expecting in terms of where the economy is going? 0:10:14.800 --> 0:10:17.440 So look, what is the definition of a soft line. 0:10:17.440 --> 0:10:21.040 It has like no formal economic definition, but basically it 0:10:21.120 --> 0:10:24.559 means if plation can come down without huge damage to 0:10:24.600 --> 0:10:27.360 the economy and out huge damage to the labor market. 0:10:27.600 --> 0:10:30.640 And we think that remains a possibility. Nobody can be 0:10:30.840 --> 0:10:34.079 sure here, but that is our view, and part of 0:10:34.120 --> 0:10:37.480 it is by the way, is we do think economic 0:10:37.520 --> 0:10:40.360 growth will slow. We think it needs to slow from 0:10:40.360 --> 0:10:44.040 the rather toward pace of the third quarter. But actually 0:10:44.120 --> 0:10:46.839 there are other parts of GDP that are kicking in here. 0:10:47.280 --> 0:10:50.640 KAPEC spend in the second quarter was up seven and 0:10:50.640 --> 0:10:55.079 a half percent. Trade is a positive contribution to GDP 0:10:55.240 --> 0:10:58.720 growth because we're bringing production back home again and that 0:10:58.760 --> 0:11:02.520 means where we're exporting more than we're importing. We think 0:11:02.559 --> 0:11:06.880 the government will remain broadly stimulative, just given the programs 0:11:06.920 --> 0:11:09.959 that have passed already. So while the consumer was slow, 0:11:10.200 --> 0:11:12.320 we think there are other parts of the economy that 0:11:12.360 --> 0:11:15.920 will kick in, and we do think there's a likely 0:11:16.160 --> 0:11:19.640 possible soft landing. Now they're very unusual in history. We'll 0:11:19.640 --> 0:11:22.800 only seem like two since the nineteen seventies. But both 0:11:22.840 --> 0:11:26.200 of those have also coincided with an increase in cap 0:11:26.320 --> 0:11:29.120 x span that I just mentioned and also innovation. 0:11:30.040 --> 0:11:32.439 Nancy, always a pleasure, appreciate it. Thanks for being with 0:11:33.160 --> 0:11:36.080 us on the program today. Nancy Kurtin, the chief investment 0:11:36.160 --> 0:11:38.679 Officer out the health of TETAM and global. 0:11:39.120 --> 0:11:42.240 You're listening to the tape. Ken's Are Live program Bloomberg 0:11:42.320 --> 0:11:45.920 Markets weekdays at ten am Eastern on Bloomberg Radio, the 0:11:45.960 --> 0:11:47.920 tune in app, Bloomberg dot Com, and. 0:11:47.880 --> 0:11:49.200 The Bloomberg Business App. 0:11:49.240 --> 0:11:52.040 You can also listen live on Amazon Alexa from our 0:11:52.080 --> 0:11:57.120 flagship New York station. Just say Alexa, play Bloomberg eleven thirty. 0:11:58.280 --> 0:12:01.959 Let's say hello to our next guest. We've got to 0:12:01.960 --> 0:12:07.440 get them seated first, and the higher edg chat. And 0:12:07.480 --> 0:12:10.679 we're also welcoming Bloomberg stand at Lauren in on this discussion. 0:12:11.040 --> 0:12:16.000 Our resident education expert here at Bloomberg, Reginald Derosius. As 0:12:16.000 --> 0:12:19.559 the president of Rice University. You know, I want to 0:12:19.600 --> 0:12:22.840 start out it was over the weekend that the student 0:12:22.920 --> 0:12:27.160 loan payments began. I wanted to get your take on 0:12:27.240 --> 0:12:32.760 that first off, after the pandemic induced delay that was 0:12:33.040 --> 0:12:34.839 initiated by the Biden administration. 0:12:35.240 --> 0:12:35.520 Yeah. 0:12:35.559 --> 0:12:37.839 So for Rice, as I mentioned a few times, we're 0:12:38.080 --> 0:12:40.720 no loan institution. We meet full need, and so at 0:12:40.840 --> 0:12:44.240 least from our perspective, we really work hard to make 0:12:44.240 --> 0:12:46.400 sure that we provide a full financial need for our 0:12:46.440 --> 0:12:51.199 students where need blind. As an admissions organization and so 0:12:51.600 --> 0:12:54.120 from our student body, it's not as much of an issue. 0:12:54.120 --> 0:12:55.839 I know it's an issue for many students. Across the 0:12:55.880 --> 0:12:59.480 country the issue of the loan repayment. 0:13:00.559 --> 0:13:04.640 Janet Lauren joining us in studio or education expert. I 0:13:04.679 --> 0:13:06.320 want to bring you into the discussion. 0:13:07.200 --> 0:13:10.680 So we were talking a little bit earlier about graduate loans. 0:13:11.840 --> 0:13:14.640 Later this year, perhaps next year, you're going to see 0:13:14.960 --> 0:13:17.880 the student loan portfolio of new loans are going to 0:13:17.880 --> 0:13:20.719 be mostly for graduate students instead of undergrads. 0:13:21.000 --> 0:13:22.199 Can you talk a little. 0:13:21.920 --> 0:13:25.520 Bit about graduate education and programs and how those are funded, 0:13:25.640 --> 0:13:29.480 especially by loans, and how some of your students, how 0:13:29.520 --> 0:13:30.880 are they doing in terms of income. 0:13:31.440 --> 0:13:35.520 Yeah, So we have a number of graduate programs at RICE, 0:13:35.559 --> 0:13:38.200 and particularly in the business and in the engineering side 0:13:38.200 --> 0:13:42.679 of things, data science, engineering and then business. One of 0:13:42.720 --> 0:13:46.000 the things we focused on recently is making sure in 0:13:46.040 --> 0:13:48.200 addition to the full time programs where students do have 0:13:48.280 --> 0:13:51.360 to stop work and in some cases take out a loan, 0:13:52.440 --> 0:13:55.160 we have programs now that are part time, that are online. 0:13:55.240 --> 0:13:58.800 We have a fifth year of the online MBA at RICE. 0:13:58.880 --> 0:14:03.760 Online program popular in large part to allow the flexibility 0:14:04.120 --> 0:14:06.080 for people to be able to continue to work while 0:14:06.080 --> 0:14:09.640 they do these programs online on their own time. And 0:14:09.640 --> 0:14:11.800 that's really helped with the affordability piece. And we have 0:14:11.920 --> 0:14:15.119 that both on the engineering and the management side and 0:14:15.320 --> 0:14:17.840 business side, and in both cases these students come out 0:14:18.200 --> 0:14:19.479 doing very well financially. 0:14:20.000 --> 0:14:22.320 And he was just telling us about a new program 0:14:22.360 --> 0:14:26.840 that was custom designed for students to work at Chevron 0:14:27.000 --> 0:14:29.720 where the employer pays. That's certainly the way to go 0:14:29.760 --> 0:14:31.440 if you can get someone else to pay for your 0:14:31.520 --> 0:14:33.800 master's degree. Can you tell us a little. 0:14:33.560 --> 0:14:34.040 Bit about that. 0:14:34.240 --> 0:14:36.520 Absolutely. So this was a program that we designed in 0:14:36.560 --> 0:14:39.880 concert with Chevron where they were very interested in taking 0:14:39.880 --> 0:14:42.440 their employees who didn't have a background in data science 0:14:42.480 --> 0:14:45.320 but needed to understand more about data science and AI. 0:14:45.960 --> 0:14:48.560 And we take around twenty five people per year through 0:14:48.600 --> 0:14:51.680 that program. We've crafted it specifically for people in that industry, 0:14:52.000 --> 0:14:54.080 and we really provide them with the skill sets to 0:14:54.120 --> 0:14:57.200 be data science within the context of what they're doing 0:14:57.400 --> 0:14:59.120 at Chevron. And we're looking to do more of that 0:14:59.160 --> 0:15:01.600 with the various indus trees that are in the city 0:15:01.640 --> 0:15:02.120 of Houston. 0:15:02.400 --> 0:15:05.640 You know, I got to answer about artificial intelligence. How 0:15:05.800 --> 0:15:09.320 is that impacting higher education? And I don't mean just 0:15:09.440 --> 0:15:12.040 like you know, looking at term papers and like, oh 0:15:12.080 --> 0:15:13.960 my god, where did this come from? Because you didn't 0:15:13.960 --> 0:15:15.520 write this kid right. 0:15:15.560 --> 0:15:17.400 So in many ways, I mean there's a research piece 0:15:17.440 --> 0:15:20.000 and then there's education piece. The research pieces, it's impacting 0:15:20.160 --> 0:15:23.280 just nearly every field that's there. Where you happen to 0:15:23.280 --> 0:15:25.480 be across the street from the largest medical center in 0:15:25.520 --> 0:15:29.080 the world, the Texas Medical Center, with many institutions and 0:15:29.160 --> 0:15:32.000 medical schools there, and their number one interest in working 0:15:32.040 --> 0:15:34.480 with RICE is around AI and data science because they 0:15:34.480 --> 0:15:39.040 know it's rapidly transforming that those industries into healthcare. 0:15:39.280 --> 0:15:40.640 Similarly, the energy. 0:15:40.320 --> 0:15:44.720 Industry is being transformed through AI and data science, and 0:15:44.760 --> 0:15:47.360 so we're forming a lot more partnerships and we're seeing 0:15:47.360 --> 0:15:51.000 how research in that space is really transforming nearly every industry. 0:15:51.040 --> 0:15:54.320 And so we're really focused on making sure we build 0:15:54.360 --> 0:15:56.440 our faculty with that expertise so that we can be 0:15:56.480 --> 0:15:58.360 a major player in some of the research that's taken 0:15:58.400 --> 0:16:01.080 place in the city of Houston and around the world. 0:16:01.680 --> 0:16:05.840 On the education side, clearly we hatch YOUTP and other 0:16:05.880 --> 0:16:09.160 tools like that. Our approach has been to understand that 0:16:09.200 --> 0:16:13.400 it's here and make sure that we craft our assignments 0:16:13.440 --> 0:16:16.080 and our exams with the understanding that students have access 0:16:16.080 --> 0:16:18.880 to this. And now we're even asking our faculty to 0:16:19.280 --> 0:16:21.240 on their syllabus, to ask the students whether or not 0:16:21.240 --> 0:16:23.480 they're using it for then assignment, just to understand whether 0:16:23.560 --> 0:16:25.920 or not they're they're going to use it and make 0:16:25.960 --> 0:16:28.560 sure you keep that in mind as you're reviewing the assignment. 0:16:29.440 --> 0:16:31.200 And given the shift that we've seen with a number 0:16:31.200 --> 0:16:34.240 of companies moving to Texas, how does that position or 0:16:34.240 --> 0:16:37.600 better position RICE graduates to be better set up for 0:16:37.680 --> 0:16:39.400 careers after college. 0:16:39.440 --> 0:16:42.720 Very well, both at the undergraduate level, We've always worked 0:16:42.760 --> 0:16:44.920 hard to prepare our students to be able to work 0:16:44.920 --> 0:16:48.080 in a variety of industries. Replace our students very well. 0:16:48.080 --> 0:16:50.680 Our students are very well regarded. We have a robust, 0:16:50.760 --> 0:16:55.480 rigorous undergraduate education that's a good mix of both technical 0:16:55.520 --> 0:16:58.680 training as well as a broad based liberal arts education. 0:16:59.080 --> 0:17:01.160 So we've done a great job at the undergraduate level 0:17:01.200 --> 0:17:05.000 preparing our students. What was mentioning earlier, Janet was mentioning 0:17:05.080 --> 0:17:06.800 is one of the things we're focused on now is 0:17:06.840 --> 0:17:09.679 how do we grow more graduate programs that help with 0:17:09.760 --> 0:17:12.480 the upskilling that's needed for all the industries in the 0:17:12.520 --> 0:17:14.760 city of Houston. And that's why we're growing more of 0:17:14.760 --> 0:17:19.160 these professional master's programs and engineering in the Business School 0:17:19.160 --> 0:17:21.040 and other areas where we know there's a major need 0:17:21.080 --> 0:17:22.040 in the city of Houston. 0:17:22.520 --> 0:17:26.480 Are there enough student visas to go around? And I 0:17:26.680 --> 0:17:28.439 wonder if you could weigh in on that. 0:17:28.640 --> 0:17:33.199 Yeah, we particularly at the gradual level, in particular at 0:17:33.240 --> 0:17:35.840 the doctoral level, many of our doctoral students are are 0:17:35.880 --> 0:17:39.280 foreign students, and we've been challenged. I think many universities 0:17:39.280 --> 0:17:41.679 are challenged every year with the ability to get students 0:17:41.720 --> 0:17:44.600 in the timely fashion, getting their visas in the timely fashion, 0:17:44.600 --> 0:17:47.240 to be able to come here and do their doctoral work. 0:17:47.280 --> 0:17:49.720 It's mostly really at the doctoral level. We have a 0:17:49.800 --> 0:17:53.280 large number of foreign students. About half of our PhD 0:17:53.320 --> 0:17:56.480 students are from outside the US, and that's that's something 0:17:56.480 --> 0:17:58.320 that's been a challenge for us, and I think many 0:17:58.359 --> 0:18:00.000 of my peer peer institutions. 0:18:00.359 --> 0:18:05.120 Let me just reintroduce everyone here, Reginald Derocious, the president 0:18:05.200 --> 0:18:09.159 of Rice the University, discussing higher education, among other things. 0:18:09.320 --> 0:18:12.360 Janet Lauren from Bloomberg News or education expert. I'm John 0:18:12.400 --> 0:18:15.879 Tucker along with Bailly Lipschultz. You want to weigh in again. 0:18:16.200 --> 0:18:18.240 Yeah, we were talking a little bit when we were 0:18:18.240 --> 0:18:22.480 meeting with reporters and editors about attracting faculty you're growing 0:18:22.760 --> 0:18:25.960 not only your student body but your faculty. Can you talk, 0:18:26.160 --> 0:18:28.199 Is it a challenge to get people to want to 0:18:28.240 --> 0:18:30.800 move to Texas, especially if they're coming from the coasts. 0:18:31.280 --> 0:18:33.520 So yeah, so we are growing. We're adding two hundred 0:18:33.600 --> 0:18:36.920 faculty for university of all size. It's pretty sign significant. 0:18:36.920 --> 0:18:40.159 We have about seven hundred faculty currently at Rice, and 0:18:40.200 --> 0:18:43.159 we're growing undergraduate student body by twenty percent. You know, 0:18:43.200 --> 0:18:45.440 we find that if we can get people to Texas, 0:18:45.480 --> 0:18:47.320 we can get people to Houston and they can see 0:18:47.760 --> 0:18:51.760 how cosmopolitan it is, how diverse it is, the rich culture, museum, 0:18:52.520 --> 0:18:56.600 the museum, culture and music culture that we do well 0:18:56.800 --> 0:18:59.480 in recruiting people, and so we've been able to so 0:18:59.560 --> 0:19:02.800 far to exceptionally talented group of faculty to Rice. We're 0:19:02.840 --> 0:19:05.520 really pleased with that and we will continue to work hard. 0:19:05.680 --> 0:19:07.399 The main thing is to get them there. Hopefully not 0:19:07.440 --> 0:19:09.520 during the summer when it's one hundred and four degrees 0:19:09.560 --> 0:19:11.640 as it was most of the summer, but we get 0:19:11.640 --> 0:19:14.160 them a nice time of the year and they really 0:19:14.200 --> 0:19:17.399 are surprised as to how diverse and cosmopolitan and what 0:19:17.440 --> 0:19:18.320 a great city it is. 0:19:18.640 --> 0:19:23.200 The research that you do does that then generate business 0:19:23.240 --> 0:19:27.000 that the university and the researchers can then capitalize on. 0:19:27.080 --> 0:19:29.640 Absolutely it does. And one of our big focuses moving 0:19:29.680 --> 0:19:32.800 forward as a university is helping to accelerate that. And 0:19:32.840 --> 0:19:35.800 so we've created when I became President and Office of 0:19:35.840 --> 0:19:39.520 Innovation and Commercialization with the sole purpose of helping our 0:19:39.600 --> 0:19:44.000 faculty in concert in some cases with industry, to commercialize 0:19:44.000 --> 0:19:47.679 their research and have new startups in the Houston area. 0:19:48.080 --> 0:19:51.480 And we have a new innovation district about a mile 0:19:51.560 --> 0:19:54.040 and a half from campus, is called the Ion District, 0:19:54.280 --> 0:19:57.120 with the sole purposes around fourteen acres of land right 0:19:57.160 --> 0:20:00.720 between Rice and downtown, with the sole purpose of industry 0:20:01.280 --> 0:20:03.919 to create more startups in the high tech area of 0:20:04.040 --> 0:20:04.680 in Houston. 0:20:04.720 --> 0:20:07.280 Does any of that conflict and wonder your thoughts on 0:20:07.320 --> 0:20:12.560 that conflict with the idea behind research in the first place. 0:20:12.640 --> 0:20:13.440 It doesn't conflict. 0:20:13.440 --> 0:20:16.720 It's fact it's synergistic. And increasingly now it used to 0:20:16.760 --> 0:20:20.320 be people recruiting faculty to universities they're really interested in 0:20:20.359 --> 0:20:23.600 the lab space more importantly in the graduate student quality, 0:20:23.640 --> 0:20:25.760 but now they also want to know what resources do 0:20:25.800 --> 0:20:28.120 you have to help them start a business or start 0:20:28.160 --> 0:20:31.359 a company from their research. It's becoming a part of 0:20:31.359 --> 0:20:34.320 what universities do on the research side, absolutely, and we 0:20:34.359 --> 0:20:36.160 want to make sure that we are equipped to help 0:20:36.160 --> 0:20:38.439 out faculty who have the interest in doing that. Not 0:20:38.480 --> 0:20:40.840 all disciplines do that, not all faculty have that interest, 0:20:40.880 --> 0:20:43.280 but those that do, we want to put the infrastructure 0:20:43.280 --> 0:20:44.560 there for them to be able to do that. 0:20:44.840 --> 0:20:46.920 And then do you often help them, you know, with 0:20:47.160 --> 0:20:51.200 patents and then and then licenses. We do companies. 0:20:51.240 --> 0:20:53.400 We have an entire office that does that and increasingly 0:20:53.440 --> 0:20:56.560 now we have we've uh, we have some seed funding 0:20:56.600 --> 0:20:58.639