WEBVTT - Markets, Inflation, And Golf 0:00:00.800 --> 0:00:04.040 Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 0:00:04.040 --> 0:00:06.920 my co host Matt Miller. Every business day we bring 0:00:06.960 --> 0:00:11.520 you interviews from CEOs, market pros, and Bloomberg experts, along 0:00:11.560 --> 0:00:15.520 with essential market moving news. Find the Bloomberg Markets podcast 0:00:15.560 --> 0:00:18.479 called Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.720 at Bloomberg dot com slash podcast. All right, Montlet's bring 0:00:22.720 --> 0:00:25.279 our next guest, Rebecca Felton, senior and market strategist for 0:00:25.400 --> 0:00:29.000 Riverfront Investment Group and her claim to fame. She is 0:00:29.040 --> 0:00:32.159 a fellow Spider Matt from the University of Richmond, my 0:00:32.280 --> 0:00:34.839 alma mater, so we can't go wrong there, and Rebecca, 0:00:34.880 --> 0:00:38.960 thanks so much for joining us here. Um boy, the 0:00:38.960 --> 0:00:42.280 wall of worry out there for an equity investor is 0:00:42.360 --> 0:00:44.720 pretty darn high, and now you add to it over 0:00:44.720 --> 0:00:47.920 the last couple of months geopolitical risk. How are you 0:00:48.000 --> 0:00:51.520 guys thinking about the market right here? Well, good morning 0:00:51.560 --> 0:00:53.800 to you both, and thank you for having me. Um. 0:00:54.040 --> 0:00:57.400 You know, we're we're cautious somewhat just because of all 0:00:57.440 --> 0:00:59.880 of the headwinds that we face in terms of headlines, 0:01:00.320 --> 0:01:03.160 but we have recently actually put some money back to 0:01:03.160 --> 0:01:05.800 work and we're still a little bit overweight equities because 0:01:05.840 --> 0:01:08.920 we think the fundamentals are so strong. What are some 0:01:08.959 --> 0:01:11.280 of the sectors that you think folks should have some 0:01:11.360 --> 0:01:14.880 exposure to hear? If you, in fact in strates are rising, 0:01:15.400 --> 0:01:20.320 growth is slowing, how do you think about that? Well, 0:01:20.400 --> 0:01:24.200 we are sticking on the growth category with our technology overweight, 0:01:24.440 --> 0:01:28.200 specifically software and services, because you do have consistency of 0:01:28.240 --> 0:01:30.880 earnings and revenue growth there, and even if you've got 0:01:30.880 --> 0:01:33.640 to higher multiples, we're willing to pay up for it. Um. 0:01:33.680 --> 0:01:36.280 We've also added back to our energy exposure, so we're 0:01:36.280 --> 0:01:39.119 trying to sort of barbel that growth with some sicklicality. 0:01:39.760 --> 0:01:42.560 So we have gone a little overweight energy. And we've 0:01:42.600 --> 0:01:46.480 also gone overweight financials in our longer horizon portfolios because 0:01:46.520 --> 0:01:49.920 you do have the play into higher net interest margins 0:01:49.960 --> 0:01:52.200 and you've also got better loan growth, so we're sticking 0:01:52.200 --> 0:01:55.680 with some large cat banks there too. Are you worried 0:01:55.680 --> 0:01:58.880 about a recession? We had a survey from our end 0:01:58.960 --> 0:02:02.520 Live blog and about half of the people we survey 0:02:02.600 --> 0:02:07.200 to expect a recession in three Well, it is. It 0:02:07.280 --> 0:02:09.480 is a great question, and you know, one of the 0:02:09.560 --> 0:02:12.320 things that We always say our mantras process over prediction, 0:02:12.440 --> 0:02:14.280 so we don't think we have a better crystal ball 0:02:14.320 --> 0:02:18.040 than anyone else, and arguably that the worries are growing 0:02:18.120 --> 0:02:20.600 every day as to whether or not we cannot navigate 0:02:20.600 --> 0:02:24.400 a soft landing and avoid a recession. UM. So uh, 0:02:24.840 --> 0:02:27.680 we would agree that that the probabilities are are rising, 0:02:27.760 --> 0:02:30.120 but we are still not saying that we expect to 0:02:30.240 --> 0:02:33.640 have one next year. Rebecca, We're going to really start 0:02:33.680 --> 0:02:37.080 kicking off big time earning season next week. What do 0:02:37.120 --> 0:02:39.760 you think is critical for this market? How are you 0:02:39.760 --> 0:02:42.760 thinking about this earning season? Well, I guess the good 0:02:42.800 --> 0:02:45.320 news is there's a lot of companies have already guided lower. 0:02:45.400 --> 0:02:48.280 Right when you look at the number of companies UM 0:02:48.400 --> 0:02:51.399 that have pre announced, the majority of those pre announcements 0:02:51.400 --> 0:02:54.440 have been lower guidance. So we believe the bar is 0:02:54.480 --> 0:02:57.480 set low. Growth for the quarter is expected to come 0:02:57.480 --> 0:03:00.760 in at a low single digit level, so it should 0:03:00.760 --> 0:03:04.679 be a quarter where the surprises maybe to the upside, 0:03:05.040 --> 0:03:08.040 and we're optimistic about that in terms of actual earnings growth, 0:03:08.040 --> 0:03:10.720 But of course we expect there to be more caution 0:03:10.880 --> 0:03:14.799 around wage pressures, supply chain disruptions and that sort of thing. 0:03:14.840 --> 0:03:17.560 So the key will be to watch margins. So far 0:03:17.639 --> 0:03:20.720 they have held in above average up around twelve, so 0:03:20.760 --> 0:03:24.000 we're hopeful that the companies will still have pricing power 0:03:24.080 --> 0:03:26.120 and be able to deliver on those margins, which is 0:03:26.120 --> 0:03:28.200 going to be key to keeping multiples up here at 0:03:28.200 --> 0:03:30.320 these levels. But you think we're going to continue to 0:03:30.320 --> 0:03:33.800 see supply chain problems, continue to see chip shortage, continue 0:03:33.800 --> 0:03:36.640 to see commodity inflation. Do you stay away from companies 0:03:36.640 --> 0:03:41.040 that are hit by that? Well, I mean we are, 0:03:41.120 --> 0:03:43.960 We're seeing some signs of easing, but of course the 0:03:44.000 --> 0:03:48.600 situation in in in Ukraine Russia that has that has 0:03:48.640 --> 0:03:53.040 caused some aggravation in those supply chains again. Uh so 0:03:53.840 --> 0:03:57.520 again we've increased our our level of cyclicality in terms 0:03:57.560 --> 0:04:01.520 of energy. Also, we've got an avoid an industrial specifically 0:04:01.560 --> 0:04:04.680 infrastructure place, so some of those areas are going to 0:04:05.000 --> 0:04:08.360 maybe be um impacted by these types of things. But 0:04:08.440 --> 0:04:10.880 we're going to take away and see attitude before we 0:04:10.920 --> 0:04:15.200 start adjusting positions dramatically versus where we are. Rebecca, how 0:04:15.200 --> 0:04:18.200 do you and your firm, Riverfront Investment Group, how do 0:04:18.200 --> 0:04:21.600 you think about E s G investing? Does that factor 0:04:21.640 --> 0:04:24.640 into your analysis at all? It seems to be gaining 0:04:25.080 --> 0:04:26.960 a lot of momentum with a lot of different types 0:04:27.000 --> 0:04:31.320 of investors. Well, absolutely, it's gaining traction that when you 0:04:31.360 --> 0:04:34.440 think about how what we do, you know, we we 0:04:34.880 --> 0:04:39.120 are products are global as allocation products. So anytime we 0:04:39.200 --> 0:04:42.359 want to think about thematic investing, it has to be 0:04:42.400 --> 0:04:46.600 against the backdrop of that global allocation theme. But then 0:04:46.640 --> 0:04:49.119 you also have to remember that E s G means 0:04:49.120 --> 0:04:52.039 something different to every investor, so it's really hard, I think, 0:04:52.080 --> 0:04:54.640 for us to to go down that path in a 0:04:54.680 --> 0:04:58.159 global diversified strategy, So we're sticking with sort of true 0:04:58.200 --> 0:05:00.960 sector plays and that sort of thing, rather than really 0:05:01.080 --> 0:05:03.560 playing in what would be called traditionally an E s 0:05:03.640 --> 0:05:09.440 G world. At what point do you, um, how, how 0:05:09.440 --> 0:05:15.039 how or when do you expect inflation to come back down? Well, 0:05:15.080 --> 0:05:18.039 obviously that's what job number one for the FED right now. 0:05:18.120 --> 0:05:20.560 They're going to do whatever they have what is the wordings, 0:05:20.640 --> 0:05:23.960 will do whatever it takes um but it's probably still 0:05:24.000 --> 0:05:26.920 not going to be until the back half of this 0:05:27.000 --> 0:05:30.760 year or maybe even into three given the pressures that 0:05:30.760 --> 0:05:34.159 we've already discussed in terms of supply chain disruptions, higher 0:05:34.520 --> 0:05:38.200 uh net energy costs for folks um and those sorts 0:05:38.240 --> 0:05:41.240 of things, and also the wage pressures. Right, the wages 0:05:41.279 --> 0:05:44.760 are going higher, so it's probably going to be maybe 0:05:44.800 --> 0:05:47.040 we'll still be talking about inflation this time next year, 0:05:47.279 --> 0:05:49.880 but I think that ultimately the FED will succeed. We 0:05:49.920 --> 0:05:52.080 may not like the ride, but they will be successful 0:05:52.120 --> 0:05:55.359 in terms of accomplishing that mission. These of you the 0:05:55.360 --> 0:05:58.560 policy changes that they're going to make. Hey, Rebecca, thank 0:05:58.560 --> 0:06:01.000 you so much for joining us. We always appreciate getting 0:06:01.080 --> 0:06:04.520 your thoughts. Rebecca Felton, Senior market strategist, Riverfront Investment Group. 0:06:04.560 --> 0:06:11.919 They are located in lovely Richmond, Virginia. Let's check in 0:06:11.960 --> 0:06:16.400 with Seth Carpenter, chief Global economists from Morgan Stanley. All Right, Seth, 0:06:17.200 --> 0:06:20.919 d dollars for a trucker. That sounds inflationary to me. 0:06:21.680 --> 0:06:23.920 How do you think about inflation in this marketplace? When 0:06:23.960 --> 0:06:26.320 you hear news that again Walmarts can pay their truckers 0:06:26.360 --> 0:06:31.040 up the hundred ten thousand dollars. Absolutely, that does sound inflationary. UM. 0:06:31.080 --> 0:06:34.359 I have to say, though, the trucker shortage is a 0:06:34.440 --> 0:06:37.200 long standing trend. In fact, the pre dates COVID, and 0:06:37.480 --> 0:06:40.479 the fact that now they're realizing that one way to 0:06:40.480 --> 0:06:41.760 get people to work for you is to pay them 0:06:41.800 --> 0:06:44.640 a little bit more. Is not overly surprising. But I 0:06:44.680 --> 0:06:46.839 think more broadly, you're right. I mean, there there is 0:06:47.320 --> 0:06:49.040 a tight labor market. I think there are no two 0:06:49.040 --> 0:06:52.279 ways about it. There continues to be very strong aggregate 0:06:52.320 --> 0:06:54.360 demand and at the end of the day, something's got 0:06:54.360 --> 0:06:56.560 to give. And we have, of course seen not only 0:06:56.640 --> 0:06:59.280 strong wages, but we've also seen, as everyone knows, a 0:06:59.320 --> 0:07:02.240 lot of inflation. I have to say also, and then 0:07:02.279 --> 0:07:05.239 we'll get off the trucker thing. It is a difficult job. 0:07:05.680 --> 0:07:07.960 It is an important job, and it is not a 0:07:08.080 --> 0:07:11.960 job that you want to just give to anyone, right 0:07:12.000 --> 0:07:15.280 because it's dangerous, a big rig in the hands of, 0:07:15.800 --> 0:07:17.520 you know, someone who doesn't know how to control it. 0:07:17.600 --> 0:07:20.080 So I'm glad they're finally getting paid more. They deserve it, 0:07:20.120 --> 0:07:22.600 they earn it, and they should. Um all right, let's 0:07:22.600 --> 0:07:26.440 get onto the broader economy because um we did a survey. 0:07:26.560 --> 0:07:30.040 Paula just sent you the story. The umly blog did 0:07:30.040 --> 0:07:33.920 a survey set and half of the respondents said they 0:07:33.920 --> 0:07:39.120 expect a recession. Ine Now, considering what we heard from 0:07:39.200 --> 0:07:42.600 Lyle Brainerd and everybody else at the FED, UM it 0:07:42.720 --> 0:07:44.880 makes more and more sense. Buller just told us he 0:07:44.920 --> 0:07:48.920 thinks they need to raise to three percent, So, um, 0:07:48.960 --> 0:07:52.120 what do you think? Yeah, so you know, I'm not 0:07:52.160 --> 0:07:54.440 going to say that a recession in three is our 0:07:54.520 --> 0:07:57.320 baseline at all, um, But I think some of the 0:07:58.160 --> 0:08:00.440 complinents that you're talking about their do ray at the risk. 0:08:00.520 --> 0:08:03.400 So the FED is in a challenging circumstances situation. They're 0:08:03.440 --> 0:08:07.240 trying to in effect land a jet on an aircraft 0:08:07.280 --> 0:08:10.560 carrier during a storm, and they've only seen one training 0:08:10.640 --> 0:08:14.080 film before, right, So it's a very very difficult situation 0:08:14.120 --> 0:08:17.680 to be in. Um. And moreover, the amount by which 0:08:17.680 --> 0:08:20.560 they're going to be tightening policy, the speed with which 0:08:20.560 --> 0:08:22.400 they're tightening policy, I think is going to be directly 0:08:22.400 --> 0:08:26.800 influenced by how strong they see the economy. And right now, 0:08:26.960 --> 0:08:29.200 look at the last Non Front Perils Report, for example, 0:08:29.400 --> 0:08:32.680 it's clearly very strong right now. So they're on there, 0:08:32.760 --> 0:08:36.120 They're they're clearly asked to start going. So then what 0:08:36.240 --> 0:08:38.920 would cause us to have a recession next year and 0:08:38.960 --> 0:08:40.920 not at all our baseline? Cage? But I think I 0:08:40.920 --> 0:08:43.200 could see a few things happening. First, is the FED 0:08:43.240 --> 0:08:47.079 getting a little bit overly enthusiastic, and they're going to 0:08:47.120 --> 0:08:49.360 start running off their balance sheet. We've got some details 0:08:49.360 --> 0:08:52.120 from that in the Minutes yesterday. But I have to say, 0:08:52.120 --> 0:08:54.320 even after my fifteen years there at the FED spending 0:08:54.320 --> 0:08:56.240 a lot of time thinking about the FED balance sheet, 0:08:56.600 --> 0:08:59.520 if anybody tells you they know for sure exactly how 0:08:59.559 --> 0:09:01.360 that un of the balance she is going to affect 0:09:01.720 --> 0:09:03.680 markets in the economy, I think they're either lying to 0:09:03.679 --> 0:09:06.199 you or they're lying to themselves. So there's some possibility 0:09:06.280 --> 0:09:09.560 of of a policy you know, hiccup there. I think 0:09:09.600 --> 0:09:12.360 on top of that, as they start hiking, especially if 0:09:12.360 --> 0:09:16.320 they front load the hiking, if Heaven forbid, things get 0:09:16.320 --> 0:09:18.640 worse with the Russian invasion of Ukraine and we have 0:09:19.000 --> 0:09:22.319 what we've detailed as the cut off scenario where all 0:09:22.440 --> 0:09:25.240 energy stops flowing to Europe for example, you could see 0:09:25.240 --> 0:09:28.720 Europe slip into recession. That's got to spill over to 0:09:28.800 --> 0:09:31.160 the US. And if the set is already front loaded 0:09:31.160 --> 0:09:32.719 a lot of the hikes and let the unwinded the 0:09:32.760 --> 0:09:35.680 balance sheet go with some unintended consequences. I think that's 0:09:35.679 --> 0:09:37.680 the sort of constellation of the events that that gets 0:09:37.679 --> 0:09:42.160 you a recession in early how material is that risk 0:09:42.480 --> 0:09:46.240 to you seth and that energy risk for Europe leading 0:09:46.240 --> 0:09:50.280 to a recession. UM. Right now, the oil still flowing, 0:09:50.360 --> 0:09:53.600 the dollars and euros are still going into Russia, but 0:09:54.280 --> 0:09:58.160 boys are growing call to kind of tone that down 0:09:58.240 --> 0:10:00.920 or limit that it doesn't seem more really tenable. YEA, 0:10:02.120 --> 0:10:07.040 So I completely agree. I mean, I'm not a political scientist, 0:10:07.120 --> 0:10:10.760 and I cannot forecast where this conflict is going. But 0:10:10.760 --> 0:10:13.320 but I absolutely subscribe to the way you're reading things, 0:10:13.320 --> 0:10:17.839 which is things are worse now than they were two 0:10:18.000 --> 0:10:20.559 or three weeks ago. I think the calls for starting 0:10:20.559 --> 0:10:23.880 to cut off with oil with a coal rather so 0:10:23.920 --> 0:10:25.760 it shows you that when maybe we're on that path 0:10:25.840 --> 0:10:29.920 in that direction, the discussions about dollars versus rubles and 0:10:30.120 --> 0:10:33.320 which accounts are frozen, I think adds to the to 0:10:33.400 --> 0:10:35.679 the tension. So I think it's got to be a 0:10:35.720 --> 0:10:39.360 scenario that we take very very seriously. How about this, UM, 0:10:39.400 --> 0:10:44.520 where's your our start right now? I'd rather start off 0:10:44.559 --> 0:10:47.880 with how big the aeror bands are around that our star. 0:10:48.160 --> 0:10:51.000 I mean, the FED has there's the nominal terms at 0:10:51.000 --> 0:10:53.160 about two and a half. I guess I would very 0:10:53.160 --> 0:10:55.840 slightly take the under on that but boy, the ability 0:10:55.880 --> 0:10:59.480 to be certain about where that is is very hard 0:10:59.480 --> 0:11:01.959 to come by. And I'll just highlight one thing. I mean, 0:11:02.360 --> 0:11:04.120 in one version of the world, the FED having a 0:11:04.160 --> 0:11:07.360 really big balance sheet, all else equal, just makes financial 0:11:07.360 --> 0:11:09.599 conditions easier, which means our star has got to be 0:11:09.679 --> 0:11:12.400 higher to get the same amount of neutrality. On the 0:11:12.440 --> 0:11:15.840 other hand, the act of shrinking the balance sheet pushes 0:11:15.880 --> 0:11:18.880 spreads wider and tightens financial conditions. And so as you're 0:11:18.880 --> 0:11:21.000 shrinking the balance sheet, maybe that says our star is 0:11:21.000 --> 0:11:24.120 a little bit lower. Um. I think anybody would be 0:11:24.160 --> 0:11:25.800 an idiot to try to say that they know for 0:11:25.840 --> 0:11:29.160 sure where it is and and and drive with that knowledge. Instead, 0:11:29.280 --> 0:11:31.640 where I suspect Powell and company are going is they're 0:11:31.679 --> 0:11:33.840 going to be driving by feel a little bit sort 0:11:33.880 --> 0:11:36.120 of like what we saw in Alright, thanks so much 0:11:36.160 --> 0:11:41.800 for joining us. Seth Carpenter, chief Global Economists from Warring Stanley. 0:11:42.480 --> 0:11:44.520 All right, let's hep mobile banking. You know, Matt, I 0:11:44.559 --> 0:11:47.960 am a whiz now at mobile banking. I deposit checks, 0:11:48.800 --> 0:11:52.600 transfer money, wire transfers. I do it all, uh, and 0:11:52.600 --> 0:11:55.280 I'm feeling pretty good about that. And that's all learned 0:11:55.280 --> 0:11:57.200 in the last two years let check of a lovely 0:11:57.280 --> 0:11:59.960 in situ chair CEO and founder of BM Technologies help 0:12:00.920 --> 0:12:03.480 banks and folks, you know, kind of get into the 0:12:03.520 --> 0:12:05.920 digital game on the banking side. Lovely, thanks so much 0:12:05.960 --> 0:12:10.200 for joining us here. Am I representative of the average 0:12:10.200 --> 0:12:12.559 person out there? I E I've gotten a lot more 0:12:12.600 --> 0:12:17.240 tech savvys relates to my banking So absolutely, thank you 0:12:17.280 --> 0:12:19.960 so much for having me. And just to begin a 0:12:19.960 --> 0:12:22.640 little bit about b M Technologies, just as a reminder, 0:12:22.720 --> 0:12:25.319 we are one of the largest digital banking and banking 0:12:25.360 --> 0:12:29.160 as a service providers in the country today um and 0:12:29.160 --> 0:12:31.480 and really one of the first neo banking fintech to 0:12:31.520 --> 0:12:34.280 go public, to be profitable and now as to actually 0:12:34.320 --> 0:12:37.920 embrace a bank charter. Um. So to answer your questions, 0:12:37.960 --> 0:12:40.800 I think that you know, COVID in that period definitely 0:12:40.840 --> 0:12:44.920 accelerated the use of technology, not just in financial services 0:12:44.960 --> 0:12:47.920 but really across the board. Um. And then couple that 0:12:48.040 --> 0:12:52.040 with a surgeon deposits from stimulus, it was definitely, you know, 0:12:52.080 --> 0:12:54.920 a good good time for for banks and for consumers 0:12:54.960 --> 0:12:57.480 to start engaging with them in any way. So what 0:12:57.520 --> 0:12:59.240 does this mean, Lovely and we can do at b 0:12:59.440 --> 0:13:02.760 M Technology do can I use you as a consumer. 0:13:03.160 --> 0:13:08.200 Um or do companies use you to help embed you know, 0:13:08.240 --> 0:13:12.520 banking services in their online presence or do you work 0:13:12.520 --> 0:13:16.280 with with banks directly? What what is it? Who's your client? Yeah? 0:13:16.559 --> 0:13:19.120 A little bit of all of the above. Um And 0:13:19.200 --> 0:13:21.840 so we have you know, a unique digital banking platform 0:13:21.920 --> 0:13:25.240 that allows us to directly go to consumers and offer 0:13:25.280 --> 0:13:28.679 them a more compelling banking experience from the products, to 0:13:28.760 --> 0:13:32.480 the features, to more affordable products that but also the 0:13:32.559 --> 0:13:36.640 same digital banking platform that's cloud based, that's a PI enabled. 0:13:37.200 --> 0:13:39.120 The beauty of it is that we could license that 0:13:39.200 --> 0:13:43.040 to others and we allow and enable large brands to 0:13:43.160 --> 0:13:46.160 offer financial services as well, and not just from a 0:13:46.240 --> 0:13:49.360 technology standpoint, but you know, as you know, banking is 0:13:49.400 --> 0:13:51.880 regulated and there's a lot in the back end to 0:13:51.960 --> 0:13:54.959 really operate and support a bank, and all of that 0:13:55.040 --> 0:13:58.720 we also provide as well today and lovely and I 0:13:58.760 --> 0:14:00.600 know you know, the banks of a talking about for 0:14:00.679 --> 0:14:04.960 years the capital investments they're making in their technology platforms. 0:14:06.360 --> 0:14:09.040 Is it lowering the cost is allowing them to increase 0:14:09.120 --> 0:14:11.920 their profit margins if they really make the investment for 0:14:11.920 --> 0:14:16.280 digital You know, we've been saying for years that banks 0:14:16.320 --> 0:14:20.320 continue to invest in in in technology and product enhancements, 0:14:20.320 --> 0:14:23.720 and that doesn't always correlate to a better customer experience. 0:14:24.120 --> 0:14:27.080 It's how is it done and is it done well 0:14:27.120 --> 0:14:30.600 with the customer in mind? And so you don't rapidly 0:14:30.640 --> 0:14:33.640 see as as larger banks are investing billions and dollars 0:14:33.680 --> 0:14:36.880 that correlates to more and more happy customers. Um. But 0:14:37.000 --> 0:14:39.720 that being said, it's a good move forward. I think 0:14:39.760 --> 0:14:43.280 that you know, consumers are demanding more as it relates 0:14:43.320 --> 0:14:46.960 to crypto in terms of having that being part of 0:14:46.960 --> 0:14:50.440 their financial planning and assuming that banks would have an 0:14:50.480 --> 0:14:53.520 opportunity for them to get involved in that. They're demanding 0:14:53.600 --> 0:14:56.760 more of a rebundling of financial services. I shouldn't have 0:14:56.800 --> 0:14:58.720 to go to robin Hood for one thing, so by 0:14:58.800 --> 0:15:02.080 for another thing, but really going under one umbrella at 0:15:02.120 --> 0:15:05.680 one platform to get all of my financial needs um. 0:15:05.760 --> 0:15:08.640 And and lastly, you know, really a push for financial 0:15:08.640 --> 0:15:10.920 inclusion so that I don't just need to go to 0:15:10.960 --> 0:15:14.640 a bank branch to get my my banking done. But really, 0:15:14.680 --> 0:15:17.800 if there's a brand that I truly trust, I value, 0:15:17.880 --> 0:15:20.040 I have an emotional connection with, can I go there 0:15:20.600 --> 0:15:23.480 and get my banking needs met? And that's what we're 0:15:23.520 --> 0:15:25.480 doing with our banking as a service and and b 0:15:25.640 --> 0:15:28.680 M Technology is partnered with T Mobile, for example, to 0:15:28.760 --> 0:15:31.920 launch the T Mobile Checking account. Interesting stuff. Yeah, I'm 0:15:31.960 --> 0:15:34.520 doing it. I'm doing it. I feel like I am 0:15:34.560 --> 0:15:38.240 TECHT savvy. Now on my consumer financials gardner? What's that 0:15:38.600 --> 0:15:40.640 during this program? I paid my gardener? There you go, 0:15:40.680 --> 0:15:43.480 look at you. Lovely to do Chair, CEO and founder 0:15:43.560 --> 0:15:45.840 of b M Technologies, New York Stock Exchange list a 0:15:45.880 --> 0:15:53.280 b M t X. It is day one of the 0:15:53.320 --> 0:15:55.880 Master's tigers on a second hole. Even par so, we 0:15:55.960 --> 0:15:58.160 thought a good time to talk about the business of golf. 0:15:58.160 --> 0:16:01.960 Friendy Pich, CEO of PGA Superstore, He's gonna join us 0:16:02.000 --> 0:16:04.400 and talk us about the retail side of the game 0:16:04.440 --> 0:16:08.080 of golf. Plus, Barry Ridholtz joins us because it's Thursday 0:16:08.120 --> 0:16:09.800 and he always talks to us on Thursday, so we'll 0:16:10.040 --> 0:16:12.600 see what his thoughts are on these markets. But first 0:16:12.640 --> 0:16:14.640 let's go to Greig Jarrett's gonna blow our business flash. 0:16:14.680 --> 0:16:18.800 Greg Well stocks continue to retreat. Paul investors are digesting 0:16:18.800 --> 0:16:22.160 the possibility of even more aggressive monetary tightening by the FED, 0:16:22.280 --> 0:16:26.200 and are monitoring the war in Ukraine. Sp Right now 0:16:26.280 --> 0:16:28.240 is down six tenths and percent down twenty five. That 0:16:28.280 --> 0:16:29.920 DO was down eight tenths of a percent, down two 0:16:29.960 --> 0:16:32.960 hundred sixty seven, and the NaNs acts down eight tenths 0:16:33.000 --> 0:16:35.720 of a percent, down a hundred sixteen. The Tenure is 0:16:35.760 --> 0:16:38.200 down eleven thirty seconds. The yield is two point six 0:16:38.320 --> 0:16:42.960 four percent. West Texas Intermediate Crude continues to descend. It's 0:16:43.000 --> 0:16:46.360 down one point four percent. Seven of barrel Comics gold 0:16:46.440 --> 0:16:49.320 is up six tenths of a percent at nine twenty 0:16:49.360 --> 0:16:53.600 and ounced the dollar five, the euro dollar nine oh won, 0:16:53.640 --> 0:16:57.560 the British pound, the dollar thirty sixty. Harvard plans to 0:16:57.600 --> 0:17:01.000 sell green bonds to finance construction of a new science 0:17:01.040 --> 0:17:04.679 and engineering complex for renovation of an existing dorm. The 0:17:04.840 --> 0:17:07.320 richest U S College is planning to sell eight hundred 0:17:07.400 --> 0:17:10.440 million dollars of taxable bonds three D you know, which 0:17:10.480 --> 0:17:14.000 will be designated as green, according to documents posted to 0:17:14.119 --> 0:17:18.840 Muni o S. That is a Bloomberg business flash. Bloomberg 0:17:18.840 --> 0:17:21.919 Markets continues now. Paul Sweeney and Matt Miller. All right, 0:17:21.920 --> 0:17:25.080 great Jered, good stuff there, you know, Matt. When the 0:17:25.119 --> 0:17:30.200 pandemic hit March of Lockdown, one of the few things 0:17:30.200 --> 0:17:31.840 you could do is kind of go out on the 0:17:31.840 --> 0:17:34.280 golf course and play golf and rounds of golf at 0:17:34.280 --> 0:17:37.840 my club in New Jersey. Roup almost fifty there in 0:17:38.600 --> 0:17:41.639 just a you know, amazing surgeon. Has to be good 0:17:41.800 --> 0:17:44.359 for the game of golf. Let's talk about the business 0:17:44.400 --> 0:17:47.640 of golf. Randy piche CEO of p g A Tour Superstars, Randy, 0:17:47.640 --> 0:17:49.800 thanks so much for joining us here again. Rounds of 0:17:49.880 --> 0:17:52.600 my club, we're up. Is that kind of what we 0:17:52.640 --> 0:17:57.120 saw around the country. Yes, very very much, and thank 0:17:57.160 --> 0:17:58.840 you first of all for having me on the show. 0:17:58.920 --> 0:18:01.120 But you are absolute of the writing in the rounds 0:18:01.160 --> 0:18:05.200 of golf. Um, the industry saw five hundred and twenty 0:18:05.359 --> 0:18:09.160 nine million rounds of golf played last year. Um that's 0:18:09.240 --> 0:18:13.600 nearly a five percent increase from which was also the 0:18:13.680 --> 0:18:17.080 highest ever recorded. Uh So we are at an all 0:18:17.160 --> 0:18:20.520 time high in in rounds played, and as you said, 0:18:20.520 --> 0:18:23.600 at your club, you're seeing that and various clubs around 0:18:23.600 --> 0:18:26.640 the country are seeing a surge like has never been 0:18:26.680 --> 0:18:30.520 seen before in the golf industry. So, uh, it's it's 0:18:30.560 --> 0:18:33.239 it's really fun to to see it. And I know 0:18:33.320 --> 0:18:35.760 that our world is experiencing a lot of pain right 0:18:35.840 --> 0:18:39.520 now between wars and what you just announced in the market, 0:18:39.640 --> 0:18:41.800 and there's a lot of bad going on in the world, 0:18:41.840 --> 0:18:45.239 but um, people are are looking for a little bit 0:18:45.280 --> 0:18:47.760 of an escape from time to time. And that's what 0:18:47.840 --> 0:18:51.280 our our business and our our great game provides. So 0:18:51.359 --> 0:18:53.639 it's really fun to to be to be able to 0:18:53.680 --> 0:18:57.720 be a part of that. How important is Tiger's participation? 0:18:59.080 --> 0:19:04.720 Extremely important? So so you probably uh remember back in 0:19:04.720 --> 0:19:07.840 in n when he first won the Masters, um and 0:19:07.920 --> 0:19:10.440 the surge that the golf, the game of golf saw 0:19:10.480 --> 0:19:15.160 between nine and two thousand, when Tiger was at his peak, um, 0:19:15.240 --> 0:19:18.119 and prior tow we had never seen a surge like 0:19:18.200 --> 0:19:21.200 that in golf. Um and and this is equal to that. 0:19:21.920 --> 0:19:25.880 And um the human side of the story of Tiger 0:19:26.040 --> 0:19:29.879 that he actually almost lost his life number one, We 0:19:29.920 --> 0:19:33.480 start with that, uh, but he was he was more 0:19:33.600 --> 0:19:35.919 likely to lose that leg than he was to to 0:19:36.000 --> 0:19:39.280 have the leg. So to to see him out here 0:19:39.480 --> 0:19:43.840 even just walking around a golf course, let alone competing 0:19:43.880 --> 0:19:46.199 as I'm watching him hit his third shot into a 0:19:46.240 --> 0:19:50.439 par five year and fakes, but he ties for the 0:19:50.520 --> 0:19:53.720 lead in the Masters. Just to be able to say 0:19:53.760 --> 0:19:59.520 that in fourteen months after that horrific accident for Tiger 0:19:59.520 --> 0:20:01.679 Woods to be ties for the lead is something that 0:20:02.320 --> 0:20:05.439 um a normal story at the Master's obviously, this is 0:20:05.440 --> 0:20:09.120 the biggest tournament of the year. Um, a normal feel 0:20:09.160 --> 0:20:12.680 good story at the Master's reaches certain news outlets when 0:20:12.760 --> 0:20:16.640 Tiger is in the Masters and contending in a normal year, 0:20:16.800 --> 0:20:20.360 it's a bigger story that my wife, who's just marginally 0:20:20.359 --> 0:20:23.359 interested in golf talks about. It's talked about in places 0:20:23.400 --> 0:20:26.320 and on networks. Uh that it's not talked about in 0:20:26.359 --> 0:20:30.000 other places. But with the accident and the comeback story 0:20:30.640 --> 0:20:35.320 added to that, this has larger than life. And you 0:20:35.359 --> 0:20:38.520 know the fact that we're sitting here watching his second 0:20:38.520 --> 0:20:41.680 hole of a seventy two whole tournament and talking about 0:20:41.720 --> 0:20:44.440 it is is really incredible. And and lots of other 0:20:44.480 --> 0:20:47.600 people are as well. We've gotten text messages the Tigers 0:20:47.640 --> 0:20:49.600 now teeing off and what do you think he's gonna do? 0:20:49.720 --> 0:20:52.239 And it's it's the talk of the golf world. So 0:20:52.320 --> 0:20:54.720 it's a lot of fun, um and it helps business 0:20:54.760 --> 0:20:57.320 and it helps people be interested in golf, which is uh, 0:20:57.800 --> 0:21:00.600 which is the most important thing. Yeah, it's interesting. Uh, 0:21:00.720 --> 0:21:02.479 you know, we're you're in here a Bloomberg We're all over. 0:21:02.600 --> 0:21:04.920 Stay tuned for updates of the Master's Tournament every hour 0:21:04.960 --> 0:21:07.160 throughout the weekend on Bloomberg Radio, and a special edition 0:21:07.520 --> 0:21:10.720 of Masters Tonight coming up at eleven pm Eastern. Randy 0:21:10.760 --> 0:21:12.359 talked to us about supply chain. If I want to 0:21:12.359 --> 0:21:14.159 go buy a new set of clubs or golf shoes, 0:21:14.240 --> 0:21:16.840 are they going to be in the store. Yeah, so 0:21:16.960 --> 0:21:20.080 that's a great question we have. We have struggled like 0:21:20.080 --> 0:21:22.960 like others have initially on the supply chain. But the 0:21:23.480 --> 0:21:26.160 best part about us is we've gotten very, very creative. 0:21:26.800 --> 0:21:30.560 Uh So, Number one, we've we've we have great relationships 0:21:30.600 --> 0:21:33.520