1 00:00:02,520 --> 00:00:07,000 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. 2 00:00:09,560 --> 00:00:12,120 Speaker 2: This is the Blue Big Day bi Q podcast. Good morning, 3 00:00:12,119 --> 00:00:15,120 Speaker 2: It's Thursday, the sixteenth of July. I'm Caroline hepkea in 4 00:00:15,160 --> 00:00:16,200 Speaker 2: London and. 5 00:00:16,120 --> 00:00:19,239 Speaker 1: I'm Stephen Caroline Brussels. Coming up today, the head of 6 00:00:19,239 --> 00:00:23,120 Speaker 1: the International Energy Agency sounds the alarm on mounting global 7 00:00:23,160 --> 00:00:27,040 Speaker 1: economic risks as the United States launches yet more strikes 8 00:00:27,080 --> 00:00:27,600 Speaker 1: on Iran. 9 00:00:28,360 --> 00:00:33,280 Speaker 2: Hedge fund giants pay small arrivals for market beating ideas 10 00:00:33,280 --> 00:00:35,400 Speaker 2: in the Ultimate Brain Trade. 11 00:00:35,680 --> 00:00:39,520 Speaker 1: Plus Europe's coal mines claim their methane emissions have plummeted. 12 00:00:39,880 --> 00:00:42,360 Speaker 1: So why are experts questioning the data? 13 00:00:42,520 --> 00:00:44,559 Speaker 3: Let's start with the roundup of our top stories. 14 00:00:45,120 --> 00:00:47,880 Speaker 1: The United States launched yet more air strikes on Iran 15 00:00:47,960 --> 00:00:52,320 Speaker 1: after President Trump pledged to intensify the bombardment until Tehran 16 00:00:52,440 --> 00:00:55,800 Speaker 1: stops attacking ships in the Strait of Hormuz. An interim 17 00:00:55,800 --> 00:00:57,840 Speaker 1: pace deal signed just a month ago as all but 18 00:00:57,960 --> 00:01:00,760 Speaker 1: collapsed as the two sides feud over control of the 19 00:01:00,840 --> 00:01:05,959 Speaker 1: vital waterway. Speaking to Bloomberg, International Energy Agency Executive Director 20 00:01:06,040 --> 00:01:09,280 Speaker 1: Fatty Beryl warned the global economy will be in peril 21 00:01:09,600 --> 00:01:12,000 Speaker 1: if the crisis isn't resolved. Within weeks. 22 00:01:12,280 --> 00:01:15,360 Speaker 4: If the Hormos stitch is not open end of July, 23 00:01:15,959 --> 00:01:20,360 Speaker 4: then the travel season starts, which mister demand goes up. 24 00:01:20,640 --> 00:01:23,920 Speaker 4: We may be entering the distrom for global economy. Thanks Scott, 25 00:01:24,040 --> 00:01:27,920 Speaker 4: there was a ceasefire and some oil went to the 26 00:01:28,000 --> 00:01:32,039 Speaker 4: state of humositch is good news. But if the puristation 27 00:01:32,920 --> 00:01:37,040 Speaker 4: lasts longer and the sit of ullmos is Quez closed, 28 00:01:37,319 --> 00:01:41,240 Speaker 4: then we may again have some difficulties for the global economy. 29 00:01:41,400 --> 00:01:44,760 Speaker 1: Beryl spoke to Bloomberg as Trump reiterated his claims around 30 00:01:44,760 --> 00:01:49,240 Speaker 1: wants to resume negotiations after US strikes degraded its missile 31 00:01:49,360 --> 00:01:53,480 Speaker 1: and drone capabilities. US president also announced that Iran had 32 00:01:53,560 --> 00:01:57,120 Speaker 1: released an American woman detained since December twenty twenty four, 33 00:01:57,560 --> 00:01:59,800 Speaker 1: calling it a gesture of goodwill. 34 00:02:00,200 --> 00:02:03,160 Speaker 2: V pound has climbed to a one year high against 35 00:02:03,240 --> 00:02:06,840 Speaker 2: other major currencies on reports that incoming Prime Minister Andy 36 00:02:06,880 --> 00:02:11,240 Speaker 2: Burnham will appoint Shabarna Matt Mood as UK Chancellor. Blubig's 37 00:02:11,280 --> 00:02:15,040 Speaker 2: Chris Pitt reports that the prospect, though is causing unease 38 00:02:15,120 --> 00:02:18,320 Speaker 2: among the labour MPs who helped put Burnham on the 39 00:02:18,360 --> 00:02:19,639 Speaker 2: path to Downing Street. 40 00:02:20,480 --> 00:02:23,680 Speaker 5: Andy Burnham becomes Labor leader tomorrow and is due to 41 00:02:23,680 --> 00:02:26,880 Speaker 5: become Prime Minister on Monday. The Financial Times and I 42 00:02:27,120 --> 00:02:31,040 Speaker 5: newspapers both report the Hiller point Home Secretary Shabanamer Mood 43 00:02:31,080 --> 00:02:34,880 Speaker 5: as Chancellor. She's seen by investors as a more market 44 00:02:34,919 --> 00:02:39,120 Speaker 5: friendly choice than the previous front runner, Energy Secretary Ed Miliband. 45 00:02:39,840 --> 00:02:42,880 Speaker 5: But while Burnham's team has told Bloomberg that no final 46 00:02:42,919 --> 00:02:46,800 Speaker 5: decision has been made, the apparent shift away from Milliband 47 00:02:46,800 --> 00:02:51,000 Speaker 5: has alarmed Labour's soft left, the faction which helped propel 48 00:02:51,040 --> 00:02:54,680 Speaker 5: the former mayor of Manchester to power. Bloomberg has learned 49 00:02:54,680 --> 00:02:58,880 Speaker 5: that miller Band supporters believe passing him over risks alienating 50 00:02:59,040 --> 00:03:03,200 Speaker 5: key allies. Before he even enters Downing Street in London, 51 00:03:03,320 --> 00:03:05,200 Speaker 5: Chris Pitt Bloomberg Radio. 52 00:03:05,200 --> 00:03:08,200 Speaker 1: The head of the CIA, says Ukraine's AI powered attack 53 00:03:08,280 --> 00:03:12,040 Speaker 1: drones mean Russian troops survived just twenty to thirty minutes 54 00:03:12,160 --> 00:03:16,760 Speaker 1: after reaching the battlefield, describing them as low cost killing machines. 55 00:03:17,080 --> 00:03:20,800 Speaker 1: John Ratliss remarks come as Western allies moved to increase 56 00:03:20,880 --> 00:03:26,240 Speaker 1: support for Ukraine's drone program. Yesterday, European Commissioned President Erslavanderlyn 57 00:03:26,320 --> 00:03:31,320 Speaker 1: unveiled a new defense package in Kiev alongside President Vladimir Zelenski, 58 00:03:31,480 --> 00:03:32,160 Speaker 1: and today I'm. 59 00:03:32,080 --> 00:03:35,080 Speaker 6: Glad to announce a new dispersement of another one billion 60 00:03:35,120 --> 00:03:39,360 Speaker 6: euros for drones specifically, but of course more is to come, 61 00:03:39,960 --> 00:03:44,240 Speaker 6: because we have just approved a ten billion eurodispersonal plans 62 00:03:44,360 --> 00:03:48,640 Speaker 6: four more drones for missiles and fighter aircrafts. So, as 63 00:03:48,640 --> 00:03:51,400 Speaker 6: I said, this is really just the beginning. 64 00:03:51,720 --> 00:03:55,640 Speaker 1: Vonderlin's announcement came as the European Union remains deadlocked over 65 00:03:55,720 --> 00:04:00,280 Speaker 1: a broader package of sanctions against Moscow, extending its rice 66 00:04:00,320 --> 00:04:03,160 Speaker 1: cap on Russian oil to next week to buy more 67 00:04:03,240 --> 00:04:06,080 Speaker 1: time for a deal. The talks come as Ukrainian drone 68 00:04:06,120 --> 00:04:10,360 Speaker 1: attacks continue to squeeze Russia's fuel supplies, driving up gasoline 69 00:04:10,400 --> 00:04:14,360 Speaker 1: and diesel prices as refineries reduce or HULD production. 70 00:04:15,120 --> 00:04:19,640 Speaker 2: JP Morgan's CEO, Jmie diamond has warned against broad access 71 00:04:19,680 --> 00:04:24,400 Speaker 2: to anthropics Mythos artificial intelligence model. It comes as rapid 72 00:04:24,440 --> 00:04:29,960 Speaker 2: advancements in AI have both industry and government assessing potential threats. 73 00:04:30,279 --> 00:04:34,680 Speaker 2: Speaking of the Pennsylvania Defense and Innovations Summit, Diamonds said, 74 00:04:34,960 --> 00:04:37,960 Speaker 2: the powerful technology raises serious risks. 75 00:04:38,640 --> 00:04:41,280 Speaker 7: Bethos, that's a real issue which I know our government 76 00:04:41,320 --> 00:04:44,000 Speaker 7: is on top of This point is not to stop 77 00:04:44,520 --> 00:04:46,680 Speaker 7: small banks from gainer stof It's really just to make 78 00:04:46,680 --> 00:04:48,320 Speaker 7: sure when we roll out the stuff that we know 79 00:04:48,800 --> 00:04:51,920 Speaker 7: is being controlled. Because this you're giving ballistic missiles to 80 00:04:52,040 --> 00:04:53,560 Speaker 7: individuals with methos. 81 00:04:53,600 --> 00:04:57,200 Speaker 2: Basically, the Jpmrgan CEO is speaking as his bank is 82 00:04:57,240 --> 00:04:59,560 Speaker 2: among a group of companies that have been testing the 83 00:04:59,600 --> 00:05:03,600 Speaker 2: model since April. Blouembig under sounds that Anthropic plans to 84 00:05:03,600 --> 00:05:06,160 Speaker 2: meet with investors in the coming weeks ahead of its 85 00:05:06,200 --> 00:05:07,839 Speaker 2: potential mega IPO. 86 00:05:08,320 --> 00:05:11,560 Speaker 1: Warren Buffett says he's ending his decades long partnership with 87 00:05:11,640 --> 00:05:15,159 Speaker 1: the Gates Foundation as Bill Gates faces renewed scrutiny over 88 00:05:15,200 --> 00:05:19,000 Speaker 1: his ties to Jeffrey Epstein. The billionaire investor is instead 89 00:05:19,040 --> 00:05:23,000 Speaker 1: accelerating donations to four charities that run by his family, 90 00:05:23,320 --> 00:05:26,360 Speaker 1: with plans to give away his entire Berkshire Hathaway stake 91 00:05:26,480 --> 00:05:30,200 Speaker 1: in the next eight years. Speaking to CNBC, Buffett says 92 00:05:30,240 --> 00:05:32,719 Speaker 1: he discussed the decision with Gates just weeks ago. 93 00:05:33,560 --> 00:05:37,440 Speaker 8: While its tasteful, while he made mistakes, I made mistakes 94 00:05:37,440 --> 00:05:40,839 Speaker 8: and hiring all kinds of people are choosing friends and 95 00:05:40,880 --> 00:05:45,080 Speaker 8: then finding out the one word that they weren't what 96 00:05:45,160 --> 00:05:48,200 Speaker 8: I thought they weren't, and so I found nothing in 97 00:05:48,240 --> 00:05:52,160 Speaker 8: there that would beyond what I can see, I can 98 00:05:52,240 --> 00:05:53,080 Speaker 8: picture myself. 99 00:05:54,680 --> 00:05:58,479 Speaker 1: Buffett discussed his decision on CNBC after the US Justice 100 00:05:58,480 --> 00:06:02,680 Speaker 1: Department released files that reignited scrutiny over Bill Gates ties 101 00:06:02,680 --> 00:06:06,000 Speaker 1: to Jeffrey Epstein earlier this year. The Gates Foundation has 102 00:06:06,040 --> 00:06:09,919 Speaker 1: since launched its own review, with findings expected later this summer. 103 00:06:10,240 --> 00:06:13,839 Speaker 2: And finally, England captain Harry Kaine says that trying to 104 00:06:13,880 --> 00:06:17,560 Speaker 2: protect a one nill lead backfired as his side suffered 105 00:06:17,560 --> 00:06:20,640 Speaker 2: a heartbreaking two one defeat to Argentina in the World 106 00:06:20,720 --> 00:06:25,000 Speaker 2: Cup semifinals. Anthony Gordon put Thomas Tukele's side ahead before 107 00:06:25,040 --> 00:06:28,560 Speaker 2: the defending champion scored twice in the closing minutes to 108 00:06:28,600 --> 00:06:32,280 Speaker 2: book a final against Spain. Harry Kane says the defeat 109 00:06:32,320 --> 00:06:34,040 Speaker 2: has left the squad hurting. 110 00:06:34,640 --> 00:06:37,040 Speaker 9: Everyone has the process what's just happened. Everyone's guided. I'm 111 00:06:37,040 --> 00:06:39,560 Speaker 9: guided for all the boys, all the staff, everyone behind 112 00:06:39,560 --> 00:06:41,679 Speaker 9: the scenes, because we know how much everyone puts into 113 00:06:41,960 --> 00:06:45,000 Speaker 9: being a successful national team. And when you're so closed, 114 00:06:45,000 --> 00:06:48,040 Speaker 9: when you're ten plus minutes away and it slips out 115 00:06:48,040 --> 00:06:51,760 Speaker 9: of your hands, that yeah, obviously that's a devastated. 116 00:06:51,560 --> 00:06:55,440 Speaker 2: England will now face France in Saturday's third place playoff, 117 00:06:55,480 --> 00:06:59,320 Speaker 2: while Argentina take on Spain in Sunday's World Cup final. 118 00:07:00,040 --> 00:07:01,240 Speaker 3: Stephen, it's heartbreak. 119 00:07:01,279 --> 00:07:04,320 Speaker 2: It was really hard to watch a really really physical 120 00:07:04,400 --> 00:07:07,919 Speaker 2: match in that semi final, but you know, Argentina clinched it. 121 00:07:08,400 --> 00:07:10,560 Speaker 2: So that's the World Cup. Let's think about the markets 122 00:07:10,960 --> 00:07:16,360 Speaker 2: this hour. Semiconductor stocks are tumbling. The Cosby is selling 123 00:07:16,400 --> 00:07:18,080 Speaker 2: off at the moment six and a half percent, the 124 00:07:18,120 --> 00:07:20,240 Speaker 2: Nicate two to five or so, down three percent. The 125 00:07:20,240 --> 00:07:23,960 Speaker 2: information reporting the ASML plans to raise prices. We also 126 00:07:24,000 --> 00:07:28,320 Speaker 2: have TSMC earnings. European natural gas prices advancing for a 127 00:07:28,480 --> 00:07:31,840 Speaker 2: fourth day, but Brent is actually down six tens one percent. 128 00:07:31,880 --> 00:07:35,360 Speaker 2: Eighty four dollars forty six. US inflation reports this week 129 00:07:35,440 --> 00:07:38,480 Speaker 2: really easing the concern around FED ray hikes four fifty 130 00:07:38,560 --> 00:07:41,600 Speaker 2: five for ten year treasury yield Stop futures for Europe 131 00:07:41,600 --> 00:07:45,000 Speaker 2: are rising about two tenths of one percent this morning. 132 00:07:45,040 --> 00:07:45,920 Speaker 3: So those are the markets. 133 00:07:46,120 --> 00:07:47,960 Speaker 1: In a moment, we'll bring you a story on how 134 00:07:47,960 --> 00:07:50,760 Speaker 1: the battle for talent has become a battle for ideas 135 00:07:50,800 --> 00:07:53,600 Speaker 1: and the Hedge Fund industry, plus why a big drop 136 00:07:53,600 --> 00:07:56,440 Speaker 1: and reported methane emissions from coal mines in Europe is 137 00:07:56,520 --> 00:07:59,960 Speaker 1: raising questions among scientists. But another story that we've been 138 00:08:00,040 --> 00:08:05,080 Speaker 1: reading this morning on queuing for food due to fads 139 00:08:05,320 --> 00:08:08,520 Speaker 1: portrayed online. Matthew Pronsberg has been writing about this for 140 00:08:08,520 --> 00:08:11,040 Speaker 1: Bloomberg Business Week. This is a phenomenon you can spot 141 00:08:11,120 --> 00:08:13,640 Speaker 1: in many parts of the world. A product catches a 142 00:08:13,640 --> 00:08:15,880 Speaker 1: social media trend. All of a sudden, there are long 143 00:08:15,920 --> 00:08:18,280 Speaker 1: lines people waiting for a day and night. Photos of 144 00:08:18,360 --> 00:08:20,880 Speaker 1: videos of the queue then circulate and it becomes an 145 00:08:20,920 --> 00:08:24,680 Speaker 1: experience in itself to spend hours waiting for whatever it is. 146 00:08:25,640 --> 00:08:27,680 Speaker 1: Summer is peak season for this. He'll be pleased to 147 00:08:27,760 --> 00:08:30,760 Speaker 1: know someone works that out. I would argue that's particularly 148 00:08:30,760 --> 00:08:33,080 Speaker 1: as Americans travelers. Every time I see this there is 149 00:08:33,320 --> 00:08:35,880 Speaker 1: a strong representation, shall we say, of Americans in the 150 00:08:35,920 --> 00:08:39,440 Speaker 1: queues for these things. Especially confusing when it's somewhere that 151 00:08:39,720 --> 00:08:42,920 Speaker 1: two weeks previously, you know, it was just a regular 152 00:08:42,960 --> 00:08:44,560 Speaker 1: pace that you passed on the street, and now all 153 00:08:44,559 --> 00:08:46,960 Speaker 1: of a sudden, there's a queue of fifty people outside. 154 00:08:47,679 --> 00:08:51,920 Speaker 1: Apparently this is something that is, you know, a recurring trend. 155 00:08:51,960 --> 00:08:54,280 Speaker 1: I think we can say it's you know, Matthew's been 156 00:08:54,320 --> 00:08:57,319 Speaker 1: looking back at how there have been trends in the past, 157 00:08:57,360 --> 00:08:59,559 Speaker 1: going back as far as the seventies or even before. 158 00:08:59,840 --> 00:09:03,640 Speaker 1: There is you know, going to be an issue that 159 00:09:03,720 --> 00:09:05,360 Speaker 1: you know that this is not something that's new. I 160 00:09:05,360 --> 00:09:09,760 Speaker 1: suppose been parody by Saturday Night Live, among others. I 161 00:09:09,320 --> 00:09:13,200 Speaker 1: do wonder though, given the English love of queuing, maybe 162 00:09:13,200 --> 00:09:15,480 Speaker 1: that you know, Britain could excel in this area. 163 00:09:15,840 --> 00:09:19,800 Speaker 2: What are you saying, Stephen col Yes, I know queueing 164 00:09:19,880 --> 00:09:22,240 Speaker 2: is a British thing. You jumping is still a real 165 00:09:22,360 --> 00:09:25,720 Speaker 2: no no here. But I think this is a bit 166 00:09:25,760 --> 00:09:28,440 Speaker 2: of a different kind of a beast in terms of queuing. 167 00:09:28,480 --> 00:09:31,440 Speaker 3: I mean, frankly, if one has to wait a long. 168 00:09:31,360 --> 00:09:34,439 Speaker 2: Time in a queue for the latest very sugar or 169 00:09:34,600 --> 00:09:37,199 Speaker 2: fat laden kind of food item, I think it makes 170 00:09:37,200 --> 00:09:39,080 Speaker 2: you ponder whether you really want to eat it. But yes, 171 00:09:39,280 --> 00:09:42,040 Speaker 2: I definitely have seen this phenomenon, you know, in and 172 00:09:42,080 --> 00:09:43,079 Speaker 2: around London. 173 00:09:43,240 --> 00:09:44,040 Speaker 3: I mean, is it new. 174 00:09:44,120 --> 00:09:46,240 Speaker 2: Maybe it's sociable, you know, to stand in the queue, 175 00:09:46,280 --> 00:09:48,360 Speaker 2: to feel like you know, you're doing something together. 176 00:09:48,800 --> 00:09:51,520 Speaker 3: Maybe that's the jolly part of it. I don't know, yeah, exactly, 177 00:09:51,559 --> 00:09:52,040 Speaker 3: I don't know. 178 00:09:52,080 --> 00:09:53,719 Speaker 1: And quite frankly, I'm not going to wait around to 179 00:09:53,720 --> 00:09:55,480 Speaker 1: find out it's the way that I feel about us. 180 00:09:56,000 --> 00:09:58,360 Speaker 1: But it is a good a good piece tracking both 181 00:09:58,360 --> 00:10:01,840 Speaker 1: the sociology and the economics of queueing because there are 182 00:10:01,920 --> 00:10:04,200 Speaker 1: companies now that you can pay at Q for you. Yes, 183 00:10:04,240 --> 00:10:05,760 Speaker 1: it's even gotten that far. We'll put a link to 184 00:10:05,800 --> 00:10:08,200 Speaker 1: the story in our podcast show notes. Well, let's turn 185 00:10:08,200 --> 00:10:10,160 Speaker 1: into a story from the hedge fund industry. Now the 186 00:10:10,160 --> 00:10:12,800 Speaker 1: world's biggest hedge funds are taking a new approach to 187 00:10:12,920 --> 00:10:16,840 Speaker 1: talent tapping portfolio managers at smaller firms, but instead of 188 00:10:16,880 --> 00:10:20,040 Speaker 1: hiring them, they're just paying for their trading ideas. Our 189 00:10:20,120 --> 00:10:22,560 Speaker 1: chief hedge fund correspondent, Nishan Kumar joins us. 190 00:10:22,480 --> 00:10:23,640 Speaker 3: Now for more. 191 00:10:24,720 --> 00:10:27,600 Speaker 1: Who is adopting this strategy and how exactly does it work? 192 00:10:28,000 --> 00:10:28,560 Speaker 3: Good morning. 193 00:10:29,160 --> 00:10:32,520 Speaker 10: I think a better question is who is not. If 194 00:10:32,559 --> 00:10:36,320 Speaker 10: you look at the industry's giant, almost everyone seems to 195 00:10:36,360 --> 00:10:37,480 Speaker 10: have a plan for it. 196 00:10:38,160 --> 00:10:40,720 Speaker 3: This strategy really started. 197 00:10:40,240 --> 00:10:43,679 Speaker 10: With firms like marshal Ways, which is a London based 198 00:10:44,520 --> 00:10:48,480 Speaker 10: more than ninety billion dollar hedge fund. Now they pioneered 199 00:10:48,559 --> 00:10:52,760 Speaker 10: alpha capture by collecting trading ideas from brokers who sell 200 00:10:52,880 --> 00:10:58,079 Speaker 10: side bank analyst and turning them into trading signals. What 201 00:10:58,240 --> 00:11:02,360 Speaker 10: is new now is that the model is spreading deeper 202 00:11:02,480 --> 00:11:05,839 Speaker 10: into the buy side and the giants are adopting it 203 00:11:05,880 --> 00:11:11,840 Speaker 10: from hedgepes, including Millennium, bally as, these Citadel point seventy two, 204 00:11:11,960 --> 00:11:15,480 Speaker 10: two Sigma, you name it. They have either used it, 205 00:11:15,720 --> 00:11:20,280 Speaker 10: exploded it, or are building versions of these programs. The 206 00:11:20,360 --> 00:11:25,120 Speaker 10: mechanics are fairly simple, although it gets very complex to 207 00:11:25,400 --> 00:11:30,600 Speaker 10: execute and implement very effectively. Smaller managers or outside investors 208 00:11:30,600 --> 00:11:35,559 Speaker 10: submit trading ideas, portfolio snapshots, or signals that they believe 209 00:11:35,600 --> 00:11:39,400 Speaker 10: could make money, and these big hedge funds then pay 210 00:11:39,480 --> 00:11:43,240 Speaker 10: them to use their ideas and filtered load ideas and 211 00:11:43,280 --> 00:11:48,400 Speaker 10: remove biases, spot patterns, and they use that as trading 212 00:11:48,440 --> 00:11:52,880 Speaker 10: signals in their wider portfolios. It is a booming rental 213 00:11:52,920 --> 00:11:55,120 Speaker 10: market for trading signals right now. 214 00:11:55,600 --> 00:11:58,160 Speaker 2: Yeah, I mean that's really interesting, isn't it kind of 215 00:11:58,160 --> 00:12:02,280 Speaker 2: atomizing the inde? Maybe why are they doing it? Why 216 00:12:02,320 --> 00:12:03,840 Speaker 2: not just hire the best people? 217 00:12:04,400 --> 00:12:07,840 Speaker 10: Well, they do hire the best people. Probably they have 218 00:12:08,000 --> 00:12:12,040 Speaker 10: run out of the people they want to hire. You know, 219 00:12:12,120 --> 00:12:16,439 Speaker 10: the hiring the best poll has become so expensive these days, 220 00:12:16,520 --> 00:12:21,200 Speaker 10: and it's so slow and competitive that you know, this 221 00:12:21,400 --> 00:12:26,160 Speaker 10: is one way to access the talent that you can't hire, 222 00:12:26,679 --> 00:12:29,520 Speaker 10: and maybe the manager is too niche or too small 223 00:12:29,600 --> 00:12:32,079 Speaker 10: that you know, they don't make sense for you as 224 00:12:32,080 --> 00:12:35,000 Speaker 10: an employee right now. So you are just testing out, 225 00:12:35,840 --> 00:12:38,600 Speaker 10: you know, you know who is who is good. Someone 226 00:12:39,520 --> 00:12:42,000 Speaker 10: we quoted in the story said that it's like hiding 227 00:12:42,040 --> 00:12:46,560 Speaker 10: an intern for three months and seeing whether you can, 228 00:12:46,720 --> 00:12:49,080 Speaker 10: you know, give them a job or not. You know, 229 00:12:49,120 --> 00:12:52,720 Speaker 10: the biggest hedgeman's already employ many of the world's best traders, 230 00:12:53,400 --> 00:12:56,280 Speaker 10: but they cannot hire everyone, and they are managing so 231 00:12:56,480 --> 00:13:01,760 Speaker 10: much money that they constantly need new, uncorrelated ideas from 232 00:13:02,000 --> 00:13:05,360 Speaker 10: you know, all kinds of people out there. So Alpha 233 00:13:05,400 --> 00:13:07,480 Speaker 10: Capture lets them do that. 234 00:13:08,520 --> 00:13:08,720 Speaker 3: Yeah. 235 00:13:09,480 --> 00:13:11,720 Speaker 1: So what does the strategy tell us about the state 236 00:13:11,760 --> 00:13:14,319 Speaker 1: of the hedgephone industry more broadly, Well. 237 00:13:14,160 --> 00:13:18,640 Speaker 10: It's quite fascinating. It shows how unequal the industry has become. 238 00:13:19,600 --> 00:13:24,120 Speaker 10: At the very top, you have the giant platforms who 239 00:13:24,160 --> 00:13:28,920 Speaker 10: have too much money to deploy they have the best 240 00:13:28,920 --> 00:13:33,679 Speaker 10: technology and infrastructure. At the bottom, many smaller managers are 241 00:13:33,760 --> 00:13:38,559 Speaker 10: struggling to raise capital, protect fees, and stay independent. Alpha 242 00:13:38,600 --> 00:13:42,600 Speaker 10: Capture sits right in the middle of that divide. The 243 00:13:42,640 --> 00:13:46,319 Speaker 10: big firms need ideas because they have too much money 244 00:13:46,320 --> 00:13:51,280 Speaker 10: to deploy. The smaller fund need revenues, visibility and sometimes 245 00:13:51,280 --> 00:13:55,640 Speaker 10: a route to future capital. So this is really a 246 00:13:55,720 --> 00:14:01,199 Speaker 10: story about, you know, how things have become, how tougher 247 00:14:01,280 --> 00:14:04,240 Speaker 10: it has become for smaller managers in the hedge fund industry. 248 00:14:04,960 --> 00:14:08,600 Speaker 10: Human judgment is being turned into data. Talent is being 249 00:14:08,640 --> 00:14:13,120 Speaker 10: rented as well as hired, and the largest hedge funds 250 00:14:13,160 --> 00:14:17,120 Speaker 10: are trying to make even external intelligence part of their 251 00:14:17,440 --> 00:14:20,840 Speaker 10: big machine that has been very successful. 252 00:14:20,880 --> 00:14:21,360 Speaker 3: Of course. 253 00:14:22,280 --> 00:14:26,720 Speaker 2: Yeah, absolutely, it's a really interesting development, isn't it. Thank 254 00:14:26,760 --> 00:14:29,240 Speaker 2: you so much for joining us and explaining so us 255 00:14:29,240 --> 00:14:32,520 Speaker 2: what is happening in the hedge fund world. Nishan Kuma, 256 00:14:32,560 --> 00:14:37,440 Speaker 2: our chief hedge fund correspondent, thank you. Stay with us. 257 00:14:37,680 --> 00:14:40,160 Speaker 2: More from Bloomberg daybaqube coming up after this. 258 00:14:42,520 --> 00:14:45,320 Speaker 1: A change in the EASE rules for tracking methane emissions 259 00:14:45,360 --> 00:14:48,680 Speaker 1: is allowing mine operators to report their own results, but 260 00:14:48,720 --> 00:14:51,600 Speaker 1: a Bloomberg investigation has found the numbers don't add up. 261 00:14:51,760 --> 00:14:55,160 Speaker 1: Our energy transitional reporter Patrosorga joins us now for more 262 00:14:55,200 --> 00:14:57,520 Speaker 1: on this story. Now, Patrick, you found that some coal 263 00:14:57,560 --> 00:15:00,840 Speaker 1: mines in Poland Germany and the Czech Republic reported huge 264 00:15:00,920 --> 00:15:04,560 Speaker 1: drops and methane emissions after this rule change. Just how 265 00:15:04,640 --> 00:15:08,360 Speaker 1: unusual were those figures and what's raising alarm bells for experts? 266 00:15:08,680 --> 00:15:12,440 Speaker 11: Yes, good morning. So the drops were between ninety nine 267 00:15:12,480 --> 00:15:16,800 Speaker 11: percent and sixty four percent in less meetane emissions between 268 00:15:16,840 --> 00:15:20,920 Speaker 11: these three countries. This has been usual, unusual because prior 269 00:15:21,040 --> 00:15:24,600 Speaker 11: to the changes of the rules, countries have used like 270 00:15:24,640 --> 00:15:26,760 Speaker 11: a nationwide emission factor. 271 00:15:27,160 --> 00:15:28,800 Speaker 3: This is like the formula. 272 00:15:28,400 --> 00:15:33,320 Speaker 11: How you calculate emissions from a surface mine. The problem 273 00:15:33,400 --> 00:15:36,760 Speaker 11: is that surface coal mines are difficult to measure, while 274 00:15:36,840 --> 00:15:42,440 Speaker 11: for other industries measurements are easier. But because these drops 275 00:15:42,440 --> 00:15:46,960 Speaker 11: were so huge, scientists just don't believe that. And what 276 00:15:47,040 --> 00:15:50,040 Speaker 11: turned out is that these tests were basically done by 277 00:15:50,120 --> 00:15:55,360 Speaker 11: the miners themselves. No verification or third party audits have 278 00:15:55,480 --> 00:15:58,360 Speaker 11: been done there so far. I think that's the thing 279 00:15:58,440 --> 00:16:01,600 Speaker 11: that only will come next year once the U is 280 00:16:01,920 --> 00:16:05,800 Speaker 11: doing some regulations and giving the guidelines how to do that. 281 00:16:06,280 --> 00:16:11,600 Speaker 11: But this is what is raised alarm bells, this message drop. Yeah, 282 00:16:11,680 --> 00:16:14,880 Speaker 11: so concerns about the data. So what's the response, say 283 00:16:14,920 --> 00:16:18,680 Speaker 11: from the miners, but then also from the EA. Right, 284 00:16:18,880 --> 00:16:22,320 Speaker 11: the miners they all said that their measurements are state 285 00:16:22,400 --> 00:16:25,680 Speaker 11: of the art and that they fully comply with the regulation. 286 00:16:26,200 --> 00:16:28,880 Speaker 11: And that's correct in the sense that the regulation does 287 00:16:29,000 --> 00:16:33,120 Speaker 11: not specify how they have to do that they should. Actually, 288 00:16:33,240 --> 00:16:36,200 Speaker 11: the new sign says you would have to test underground, 289 00:16:36,400 --> 00:16:40,280 Speaker 11: like maybe three hundred meters deep, and not directly from 290 00:16:40,320 --> 00:16:43,520 Speaker 11: the surface, because the metane on the surface will already 291 00:16:43,520 --> 00:16:46,080 Speaker 11: have dissolved into the air, like when you open a 292 00:16:46,120 --> 00:16:47,920 Speaker 11: soda bottle, the gas is gone. 293 00:16:48,040 --> 00:16:48,280 Speaker 2: Right. 294 00:16:48,840 --> 00:16:52,880 Speaker 11: The Commission itself says that it is now going to 295 00:16:52,920 --> 00:16:57,800 Speaker 11: prepare a request to do draft standards so that also 296 00:16:57,920 --> 00:17:01,640 Speaker 11: coal mines will be covered. We do expect next week 297 00:17:01,720 --> 00:17:05,639 Speaker 11: that in the whole EU Meetane Package, guidelines will be 298 00:17:05,720 --> 00:17:09,679 Speaker 11: presented and hopefully something more useful for the miners to test. 299 00:17:10,440 --> 00:17:12,959 Speaker 1: What does all of this mean for the EU's target 300 00:17:13,000 --> 00:17:16,400 Speaker 1: to help reduce global meeta an emissions by thirty percent 301 00:17:16,600 --> 00:17:17,600 Speaker 1: by twenty thirty. 302 00:17:18,040 --> 00:17:21,680 Speaker 11: Honestly, it's probably going to make that goal harder because 303 00:17:21,720 --> 00:17:26,080 Speaker 11: if you are saying that you have much less emissions, 304 00:17:26,240 --> 00:17:29,840 Speaker 11: like we're talking of thousands of the values we have 305 00:17:29,960 --> 00:17:35,440 Speaker 11: seen before, like three orders of magnitude less of results, 306 00:17:35,800 --> 00:17:41,680 Speaker 11: then I think it is totally underestimating the effort still 307 00:17:41,720 --> 00:17:45,240 Speaker 11: needed to actually reach that Meetane cut. 308 00:17:46,080 --> 00:17:48,480 Speaker 1: Thanks for listening to Bloomberg Daybreak Europe. 309 00:17:48,640 --> 00:17:51,200 Speaker 2: If you're enjoying the podcast, give us a follow, leave 310 00:17:51,240 --> 00:17:53,480 Speaker 2: a rating or review, and maybe send it to that 311 00:17:53,560 --> 00:17:56,359 Speaker 2: one friend or colleague who's always trying to keep up 312 00:17:56,400 --> 00:17:57,200 Speaker 2: with the news. 313 00:17:57,400 --> 00:17:59,520 Speaker 1: And if one podcast today is and en off for you, 314 00:17:59,520 --> 00:18:02,080 Speaker 1: you can also listen to us live every weekday from 315 00:18:02,200 --> 00:18:05,200 Speaker 1: six am in London on DAB Radio, on tune in 316 00:18:05,440 --> 00:18:07,280 Speaker 1: and on the Bloomberg Business App. 317 00:18:07,600 --> 00:18:10,000 Speaker 2: Oh if you've got a smart speaker nearby, just say 318 00:18:10,200 --> 00:18:11,480 Speaker 2: play Bloomberg Radio.