WEBVTT - Markets, Crypto, Porsche, And The Queen (Podcast) 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 0:00:11.520 --> 0:00:15.600 with essential market moving news. Find the Bloomberg markets podcast 0:00:15.600 --> 0:00:18.439 on Apple podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.520 at Bloomberg Dot com slash podcast. Let's get right to 0:00:22.520 --> 0:00:25.439 our next guest, William Houston, see io of Bay Street 0:00:25.600 --> 0:00:30.880 Capital Holdings. So William, you prefer William or bill? How 0:00:30.880 --> 0:00:36.440 are we going here? Yeah, William, awesome. Great. So William portfolio. 0:00:36.680 --> 0:00:38.920 I grew up with that. That didn't work for me 0:00:39.000 --> 0:00:42.680 so well this year. What are you kind of doing 0:00:42.880 --> 0:00:46.199 their over at bay street in terms of allocating access 0:00:46.280 --> 0:00:50.600 between equities, fixed income, maybe some commodities, maybe some alternatives. 0:00:50.600 --> 0:00:52.159 I mean, what do you do in a market environment 0:00:52.200 --> 0:00:56.280 like this? MM HMM. It's not so much the allocation 0:00:56.400 --> 0:00:59.880 right now as much as what the marketing anticipating. So, 0:01:00.320 --> 0:01:03.080 you know, as long as the Fed continues down this 0:01:03.160 --> 0:01:05.400 course of raising rates, we're going to see more of 0:01:05.440 --> 0:01:07.640 the same of what we're seeing in the market, you know, 0:01:07.760 --> 0:01:11.360 until they are able to reverse course once the inflation 0:01:11.400 --> 0:01:14.560 has slowed down. Regards what someone's allocation is, they're going 0:01:14.600 --> 0:01:17.520 to be looking at a difficult, a difficult path in 0:01:17.560 --> 0:01:23.880 the equities market. So, Um, it's not like a binary thing, 0:01:23.920 --> 0:01:26.199 that Um. I always think about it like that. Either 0:01:26.200 --> 0:01:28.320 they're raising or they're cutting, but they could. I guess 0:01:28.400 --> 0:01:30.960 the market expectation is that they plateau at some point 0:01:31.040 --> 0:01:33.959 and just hold for a while. How do you see 0:01:34.000 --> 0:01:35.840 that going, and how important is your fed call to 0:01:35.880 --> 0:01:40.800 your investment strategy? Yes, that's the right process. You know, 0:01:41.520 --> 0:01:44.840 the the market is pricing in the pace that we're 0:01:44.840 --> 0:01:47.000 going to see these these rate hikes, as you said, 0:01:47.000 --> 0:01:50.880 everyone's anticipating the seventy basis points. And yes, as soon 0:01:50.920 --> 0:01:54.120 as that trend reverse this course, you know, we stopped 0:01:54.160 --> 0:01:57.000 seeing this inversion in the yield curve where, you know, 0:01:57.240 --> 0:02:00.360 investors are being actually rewarded at a higher rate on 0:02:00.400 --> 0:02:04.760 these on these shorter term uh will say like like 0:02:04.760 --> 0:02:07.960 like like yields as opposed to longer term reels. As 0:02:07.960 --> 0:02:09.840 long as that's the case, yeah, equities are going to 0:02:09.960 --> 0:02:13.200 perform poorly, um, and and that's where that's what we're 0:02:13.200 --> 0:02:15.920 looking at for right now. So what do you do? 0:02:15.960 --> 0:02:18.320 What do you tell your clients these days again, their 0:02:18.400 --> 0:02:21.919 their bonds haven't worked for them. Their stocks haven't worked 0:02:21.960 --> 0:02:24.359 for them. I mean, unless they've got a barrel of oil, 0:02:24.600 --> 0:02:27.679 you know, sitting in their apartment. What do they do? 0:02:27.919 --> 0:02:29.880 A lot of investors have also gone to cash in 0:02:29.919 --> 0:02:34.920 a very strong way. Yeah, what do you do? What 0:02:34.960 --> 0:02:36.440 are your cash balances and where do you put them 0:02:36.480 --> 0:02:40.480 to work? If you do so, for a lot of 0:02:40.480 --> 0:02:42.519 folks that are rebalancing at the end of the year, 0:02:42.600 --> 0:02:44.640 at the beginning of the year, they would have already, 0:02:44.840 --> 0:02:47.960 you know, positioned themselves with some sort of cash allocation. 0:02:48.240 --> 0:02:53.760 We went into the year in January with cash. With that, 0:02:53.880 --> 0:02:57.560 you know, we've still seen similar performance in in the market. 0:02:57.600 --> 0:03:01.280 We're still down about or team per sent a year 0:03:01.360 --> 0:03:04.360 to date. You know, with that cast, it's there that 0:03:04.400 --> 0:03:07.680 we've been able to be opportunistic with Uh. You know, 0:03:07.760 --> 0:03:09.880 I would say for the next six months the housing 0:03:09.960 --> 0:03:13.600 market is going to look uh soft. You know, housing 0:03:13.720 --> 0:03:16.880 also shot up over the last couple of years. With 0:03:17.040 --> 0:03:19.560 rates as high as they are, though, you know, there's 0:03:20.040 --> 0:03:22.320 less offers that are coming in. That means there's going 0:03:22.360 --> 0:03:25.040 to be lower inventories, which means that prices are going 0:03:25.080 --> 0:03:27.760 to start coming down. So I would say, for for 0:03:27.840 --> 0:03:30.600 people who are looking today, the smartest thing to do 0:03:30.680 --> 0:03:32.400 is to just wait. You know, a lot of things 0:03:32.400 --> 0:03:36.000 have been announcing layoffs. So just in general, the market 0:03:36.040 --> 0:03:38.320 is going to see some softness in the next six months, 0:03:38.400 --> 0:03:41.520 nine months. But that doesn't mean, you know, don't be alert, 0:03:41.600 --> 0:03:43.720 don't be village and it just means let's look around, 0:03:44.160 --> 0:03:46.960 you know, prepared for, as these opportunities come up, as 0:03:47.000 --> 0:03:50.520 we intestipate, these prices to come down. Welleam I want 0:03:50.520 --> 0:03:54.480 to ask you about Um, your life, your studies and 0:03:55.440 --> 0:03:57.880 you know what you do out there on the left coast, 0:03:57.960 --> 0:04:01.560 because I initially, you know, I saw your resume, restruck 0:04:01.680 --> 0:04:05.360 by how much you studied Um investment management at Wharton, 0:04:05.480 --> 0:04:11.080 Industrial Systems Engineering at Georgia Tech, mathematics Alabama, and classically 0:04:11.080 --> 0:04:13.960 trained pianist at Vanderbilt's Blair School of Music, which made 0:04:14.000 --> 0:04:16.159 me think about the fact that a lot of times 0:04:16.240 --> 0:04:21.479 musicians are so innovative and Um so successful in the 0:04:21.560 --> 0:04:24.039 world of business and and on Wall Street. And I 0:04:24.040 --> 0:04:25.640 just wonder what you think about that and how it's 0:04:25.680 --> 0:04:30.640 how it's affected you. M Hm. So I think you know, 0:04:31.360 --> 0:04:34.359 no individual is able it's going to be able to 0:04:34.400 --> 0:04:37.680 outperform the market. You know, fortunately for me, I've been 0:04:37.720 --> 0:04:41.719 able to surround myself with other individuals from very diverse 0:04:41.880 --> 0:04:45.279 backgrounds and, you know, it's that diversity of thought in 0:04:45.360 --> 0:04:49.279 this concept around idea flow. A friend of mine at 0:04:49.320 --> 0:04:52.160 the Stanford d school, he actually just released a book on, 0:04:52.480 --> 0:04:55.760 you know, how to come up with good ideas, you know, 0:04:55.839 --> 0:04:58.560 and the truth to that is, when you're looking at 0:04:58.560 --> 0:05:01.400 an investment opportunity, every one knows that it's art, you know, 0:05:01.560 --> 0:05:05.080 Part Art, part science, but the best ideas actually come 0:05:05.200 --> 0:05:08.839 from actually the abundance of ideas, you know. So something 0:05:08.880 --> 0:05:12.360 that we do internally as a team is speak through 0:05:12.400 --> 0:05:15.039 the opportunities that we're looking at, speak through what's going 0:05:15.040 --> 0:05:17.800 on in the market, but also be comfortable to go 0:05:17.920 --> 0:05:20.640 through as many ideas as possible as a team so 0:05:20.680 --> 0:05:23.520 that we can so that we can field test these 0:05:23.640 --> 0:05:26.480 options that are coming up and actually, through trial and error, 0:05:26.480 --> 0:05:29.000 see well, what is the best option to to to 0:05:29.000 --> 0:05:31.720 to take in the in the in the in the 0:05:31.720 --> 0:05:35.719 thing that we're experiencing at that at that moment. So 0:05:35.880 --> 0:05:38.680 will you what's you know? What do you think you 0:05:38.720 --> 0:05:41.120 really bring? What do you try to bring to your 0:05:41.480 --> 0:05:45.800 clients in terms of value, service insight. You know, what 0:05:45.839 --> 0:05:48.320 do you think is most important that you bring to 0:05:48.360 --> 0:05:53.080 your clients? Yeah, so something we've always stood behind is 0:05:53.120 --> 0:05:55.719 investing through the lens of history, right. So we want 0:05:55.720 --> 0:05:58.120 to be able to look at an opportunity. We want 0:05:58.120 --> 0:06:01.160 to help investors see around the corner. We want to 0:06:01.200 --> 0:06:05.440 prevent any emotional decision making. So for us, you know, 0:06:05.480 --> 0:06:08.039 we want to be able to see what's going on and, 0:06:08.080 --> 0:06:11.200 when market sentiment is where it is today, be able 0:06:11.240 --> 0:06:14.719 to explain the position that we're in. Uh, and also, 0:06:15.279 --> 0:06:18.360 you know, again, even though we were only in cash, 0:06:18.440 --> 0:06:21.640 instead of going back hindsight and trying to make an 0:06:21.720 --> 0:06:25.000 impulsive decision, say, okay, this is where we position and 0:06:25.240 --> 0:06:28.960 over the long term, uh, you know, over time equity 0:06:29.000 --> 0:06:32.040 markets will pull back up. We can speak investors through 0:06:32.120 --> 0:06:34.520 this next six to nine months that we see coming 0:06:35.200 --> 0:06:37.000 so that they're able to have a little rest in 0:06:37.040 --> 0:06:39.919 peace of mind as we as we step into it. All. Right, 0:06:40.000 --> 0:06:41.960 good stuff, Hey, William, thanks so much for joining us. 0:06:41.960 --> 0:06:44.560 Really appreciate you taking some time out of your day 0:06:44.560 --> 0:06:47.159 to chat with us. William Houston, C I O of 0:06:47.320 --> 0:06:51.920 Bay Street Capital Holdings and one of investipedia's top one 0:06:51.960 --> 0:06:55.840 hundred most influential advisors. That's a second year Ro. He's 0:06:55.880 --> 0:07:03.400 been nominated for that prestigious award. Yeah, we've got a 0:07:03.400 --> 0:07:06.839 Federal Reserve. They're gonna be chatting with us on Wednesday, Bloomberg. 0:07:06.880 --> 0:07:10.040 Of course we'll have full coverage of our Federal Reserve 0:07:10.200 --> 0:07:12.880 and the press conferences and all that good stuff. But 0:07:12.880 --> 0:07:15.880 the question is, okay, you're raising interest rates. Are you 0:07:15.880 --> 0:07:18.120 can push this economy into a recession? Let's check in 0:07:18.160 --> 0:07:20.400 with somebody who thinks about this stuff for a living. 0:07:20.440 --> 0:07:25.360 Marcus schomer, chief economists at Pine Bridge Investments. Marcus, what's 0:07:25.400 --> 0:07:29.360 your recession call with a Federal Reserve? That seems pretty 0:07:29.400 --> 0:07:31.600 you know, hell been on kind of getting its handle 0:07:31.640 --> 0:07:37.320 on inflation. Uh, it's really hard to to get to 0:07:37.360 --> 0:07:41.080 get your head around the recession call forecast right now. Um, 0:07:41.360 --> 0:07:43.480 because it depends a little bit what it's all about, 0:07:43.480 --> 0:07:45.840 depending what what do you think the Fed will do, 0:07:46.200 --> 0:07:49.920 as opposed what the feds should do, if you really 0:07:49.960 --> 0:07:52.680 think that they're hell bend on a recession, if you 0:07:52.760 --> 0:07:56.000 really think they're so ignorant that they don't see how 0:07:56.040 --> 0:07:59.280 the inflation environment is turning, and it is changing rapidly 0:07:59.400 --> 0:08:01.720 over the last couple of months. If they really, if 0:08:01.720 --> 0:08:04.720 you really believe they're so ignorant that they're not see that, 0:08:05.040 --> 0:08:07.840 then Um, if we do get a recession next year, 0:08:07.880 --> 0:08:10.440 it's all about them and it will be the second 0:08:11.360 --> 0:08:14.360 major policy era after last year getting the inflation story 0:08:14.360 --> 0:08:18.440 completely wrong. They may get the inflation story completely wrong 0:08:18.760 --> 0:08:24.400 again and push the economy into recession next year. So, Um, 0:08:24.520 --> 0:08:27.920 I'm sticking I'm sticking out with the non recession forecast 0:08:28.080 --> 0:08:33.840 because I, maybe somewhat naively, believe they will get some 0:08:33.840 --> 0:08:37.280 some sort of economic sense over the next six months 0:08:37.360 --> 0:08:40.360 or so, realize where we are and stop this kind 0:08:40.360 --> 0:08:44.199 of ridiculous hawkishness that's coming out of every every remember 0:08:44.280 --> 0:08:47.320 right now and it's pushing up expectations for rate higher 0:08:47.360 --> 0:08:51.600 and higher and higher. Marcus, I love your take because, um, 0:08:51.640 --> 0:08:55.160 of course the Fed is going to play it as 0:08:55.200 --> 0:08:59.319 hawkish as possible. They want to bring inflation expectations down 0:08:59.400 --> 0:09:01.480 and the only way to do that is to convince 0:09:01.559 --> 0:09:04.439 everybody in America or in the world, and that means 0:09:04.480 --> 0:09:09.240 market participants too, that they will do everything they have 0:09:09.360 --> 0:09:11.520 to do to crush inflation, that that doesn't mean they're 0:09:11.559 --> 0:09:13.800 actually going to do it. It doesn't mean they're actually 0:09:13.840 --> 0:09:18.120 going to ignore a recession, high unemployment, you know, um 0:09:18.320 --> 0:09:21.800 unrest in the streets, just in order to bring this 0:09:21.880 --> 0:09:24.280 number that's already coming down down. But they have to 0:09:24.320 --> 0:09:29.800 put on that Hawk Ish Um uh show. Is that 0:09:29.840 --> 0:09:32.200 how you think it's gonna work, that they're that they're 0:09:32.240 --> 0:09:34.880 actually they actually are going to be smart enough or 0:09:35.040 --> 0:09:40.640 or Um sensitive enough too, if not turn around, at 0:09:40.720 --> 0:09:44.280 least pause when we start to get unemployment really ticking up. 0:09:45.440 --> 0:09:48.400 You said, you obviously right in your description there Um, 0:09:48.600 --> 0:09:52.160 but inflation expectations, I'm not rising inflation next. True, you 0:09:52.240 --> 0:09:55.920 mission numbers were very were very good. Yet months ago 0:09:55.440 --> 0:09:57.520 you look at the New York site, has another one 0:09:57.520 --> 0:10:00.520 with the New York site. Is a three UH inflation 0:10:00.720 --> 0:10:05.320 outlook number, inflation expectations number there that's been turning. Tips, number, tips, 0:10:06.000 --> 0:10:08.800 inflation forecast has turned. I mean, I don't see any 0:10:08.840 --> 0:10:12.040 indicator that suggests inflation expectations are rising. But that's the 0:10:12.040 --> 0:10:15.400 other problem. Um, I'm kind of very that they have 0:10:15.480 --> 0:10:18.520 to continue to to talk hawkish, right, otherwise that turns 0:10:18.559 --> 0:10:22.079 back around. No, it wouldn't. I don't think in face 0:10:22.160 --> 0:10:24.680 expectation not reven what the Fed says its lasin expectation 0:10:24.720 --> 0:10:26.280 of driven what people see on the street, and you 0:10:26.280 --> 0:10:29.679 know what they're seeing. They're seeing falling gas prices and 0:10:29.800 --> 0:10:33.640 they're seeing certainly a reduction in the upward pressure and 0:10:33.679 --> 0:10:36.120 prices in other areas. And if you look at look 0:10:36.120 --> 0:10:39.120 at things like like import prices, import prices, I think, 0:10:39.440 --> 0:10:43.320 already point to the next deflationary impulse that's coming because 0:10:43.360 --> 0:10:45.559 the dollars super strong. The rest of the world is 0:10:45.559 --> 0:10:49.319 slowing much harder than the US. Everything we import right 0:10:49.320 --> 0:10:51.640 now is going down in prices and I think that 0:10:51.640 --> 0:10:55.040 that that deflationary impults will only intensify in the next 0:10:55.080 --> 0:10:58.640 six months Um. So I don't see but thefts still 0:10:58.679 --> 0:11:01.880 sees the problem. It looks at core CPI, which is 0:11:01.880 --> 0:11:04.320 a terrible number to look at. We should start looking 0:11:04.400 --> 0:11:08.600 at CPI without housing, because housing is obscuring the turn 0:11:08.760 --> 0:11:10.640 right now and it is all about the turn and 0:11:10.679 --> 0:11:14.480 getting conference in the turn. Once operation turns, it has 0:11:14.480 --> 0:11:16.240 been my view for a while that then the debate 0:11:16.280 --> 0:11:19.000 would change from how high to how fast will we 0:11:19.040 --> 0:11:21.160 get to two percent? And that's a very different kind 0:11:21.160 --> 0:11:24.200 of discustion. Isn't it hard to leave out rents. That's 0:11:24.240 --> 0:11:27.080 such a sticky component. We hear of inflation, but and 0:11:27.240 --> 0:11:29.760 it's been out of control on the upside. So it 0:11:29.840 --> 0:11:32.679 isn't a sticky component. It isn't. It's only sticky because 0:11:32.679 --> 0:11:34.920 the way it works right, because the way they do 0:11:35.040 --> 0:11:39.600 that they include rents and CPI, is by taking the 0:11:39.720 --> 0:11:43.640 very latest information on rent and only using of that 0:11:43.760 --> 0:11:46.720 for the rental component of CPI. Because you know what, 0:11:47.120 --> 0:11:50.640 nobody rents a new home every month, right, and nobody 0:11:50.679 --> 0:11:53.520 buys a house every month. So housing really shouldn't be 0:11:53.520 --> 0:11:55.800 in there. But SP and CPI should be things that 0:11:55.840 --> 0:11:59.320 you basically buy every month or every every other month 0:11:59.400 --> 0:12:01.240 or so you can notice the price is going up 0:12:01.320 --> 0:12:03.319 or down. But things that you buy only every five 0:12:03.440 --> 0:12:06.280 years or every two years should really be in the CPI, 0:12:06.400 --> 0:12:08.240 or at least we should kind of adjust the CPI 0:12:08.600 --> 0:12:11.760 for the frequency of transaction of that product. And the 0:12:11.800 --> 0:12:13.800 only thing that's going still up right now, but it's 0:12:13.840 --> 0:12:15.679 not exactly two but the one thing that's going up 0:12:15.760 --> 0:12:19.240 right now making everybody worried is housing. Is that what 0:12:19.240 --> 0:12:23.199 any going down now? He's collapsing right now. Is I'm 0:12:23.240 --> 0:12:25.439 not going up anymore and rensom are going up anymore. 0:12:26.000 --> 0:12:29.559 So I was gonna say that's not the case in 0:12:29.600 --> 0:12:33.520 New York City. But Housing is, uh, you know, rolling over. 0:12:33.559 --> 0:12:36.280 We get mortgage rates over six per cents. Marcus Scholmer, 0:12:36.320 --> 0:12:39.439 thanks so much for joining us there. Marcus Scholmer, chief 0:12:39.440 --> 0:12:43.559 economers for pint bridge investments. I think he's kind of 0:12:43.559 --> 0:12:46.200 in that Vince Signarella camp, which is hey man, inflation 0:12:46.280 --> 0:12:48.560 is rolling over. If I'm the Federal Reserve, I can 0:12:48.600 --> 0:12:52.120 afford the Pauls, if not now, then maybe the next time, 0:12:52.160 --> 0:12:57.000 but we'll have to see how that plays out. Here 0:12:57.000 --> 0:13:00.320 in our Bloomberg interactive broker's Radio Studio we got a 0:13:00.360 --> 0:13:03.040 wall of video screens for all the networks kind of 0:13:03.120 --> 0:13:05.640 up in front of us and just seeing some video 0:13:05.679 --> 0:13:08.880 of the Queen's coffin now is arriving at Windsor Castle. 0:13:09.480 --> 0:13:13.040 This huge, huge procession lined with just throngs of people. 0:13:13.720 --> 0:13:17.400 Just extraordinary, uh kind of day here. And I was 0:13:17.480 --> 0:13:19.800 looking at the schedule, man, it starts at six thirty 0:13:19.880 --> 0:13:22.800 a m this morning the you know, some of these 0:13:23.080 --> 0:13:26.720 uh rights and events, and doesn't end until seven thirty 0:13:26.760 --> 0:13:28.760 this evening. So a long day for all involved. And 0:13:28.760 --> 0:13:30.960 then we'll get a sense of what's going on there 0:13:30.960 --> 0:13:33.160 on the ground. We bring in Leanne Garan's she's a 0:13:33.240 --> 0:13:36.520 radio anchor and producer for for Bloomberg News in London. Leanne, 0:13:36.520 --> 0:13:38.280 thanks so much for taking the time to join us. 0:13:38.320 --> 0:13:40.920 I'd love to you should get your your view of 0:13:41.000 --> 0:13:45.120 kind of how the day hasn't folded so far in London, 0:13:46.480 --> 0:13:49.679 of course. Um. So this morning I was down at 0:13:49.720 --> 0:13:52.880 Westminster Abbey and you know, the queue that we've seen 0:13:52.960 --> 0:13:55.840 here in London has been somewhat of a phenomenon. Just 0:13:56.040 --> 0:14:00.160 hundreds of thousands of people have nine the streets to 0:14:00.240 --> 0:14:03.640 see the queen lying in states and I spoke to 0:14:03.760 --> 0:14:07.600 some of the last people to enter that Great Westminster 0:14:07.760 --> 0:14:10.600 Hall to say their Final Goodbyes today and they've been 0:14:10.640 --> 0:14:14.240 waiting in the queue for thirteen hours. Shortly after that 0:14:15.200 --> 0:14:19.080 the queue was closed about six thirty am and then 0:14:19.440 --> 0:14:23.400 we also saw the queen loaded onto the gun carriage 0:14:23.560 --> 0:14:28.520 and she was pulled by members and sailors from the 0:14:28.600 --> 0:14:33.560 military here to Westminster Abbey, which is just eight minutes away, 0:14:33.880 --> 0:14:36.840 and I witnessed that and it was a moment of 0:14:37.240 --> 0:14:42.960 raw emotions. We've seen Um pageantry and pomp and ceremony 0:14:43.000 --> 0:14:47.000 and just a feeling of emotion in London. The gun 0:14:47.040 --> 0:14:50.320 carriage is so cool. So here's the deal of the 0:14:50.360 --> 0:14:54.720 gun carriage. Basically, Um, it is an actual carriage for 0:14:54.760 --> 0:14:57.480 a twelve pound gun. Okay. That was built, I think, 0:14:57.480 --> 0:15:01.600 in the late eighteen hundreds and when Queen Victoria died 0:15:02.160 --> 0:15:04.680 um they went to pull it with horses, but the 0:15:04.720 --> 0:15:06.600 funeral was in February and it was too cold. The 0:15:06.640 --> 0:15:10.040 horses were freaking out, so they had UM. It was 0:15:10.080 --> 0:15:15.440 actually Dickie's father, Louis Mount Batten, the original Louis Mount Batton, 0:15:15.480 --> 0:15:17.920 who said, you know what, we're gonna pull this ourselves, 0:15:18.000 --> 0:15:19.880 and they had like a hundred guys get out there 0:15:20.000 --> 0:15:22.440 kidding and pull it. And ever since then it's become 0:15:22.520 --> 0:15:27.000 an institution in royal funerals. Um So cool. Now they're 0:15:27.000 --> 0:15:33.280 marching into Windsor Castle. It's gigantic. I never noticed how 0:15:33.320 --> 0:15:36.880 big it is. I believe it is the biggest royal 0:15:36.920 --> 0:15:39.560 palace that's still inhabited by kings and Queens in the 0:15:39.600 --> 0:15:43.680 whole world. Have you been there, Liam? I have been 0:15:43.680 --> 0:15:45.680 there and I do actually spend a lot of time 0:15:45.800 --> 0:15:48.760 in one. It's one of my favorite places here in 0:15:48.800 --> 0:15:51.800 the UK and it was actually one of the Queen's 0:15:51.840 --> 0:15:55.280 favorite places. She loved it and during the pandemic it 0:15:55.360 --> 0:15:58.480 was called the Windsor Bubble, where she spent a long 0:15:58.520 --> 0:16:02.440 time with her former husband and also with the staff 0:16:02.480 --> 0:16:04.600 of Windsor Castle, and that's because, as we know, the 0:16:04.680 --> 0:16:08.400 Queen always loved to be outdoors, she loved to walk 0:16:08.440 --> 0:16:12.080 her Corgis and also have access to the horses, and that's, 0:16:12.160 --> 0:16:15.880 like you said, Windsor Castle is the place where that happens. 0:16:16.280 --> 0:16:19.440 And I could not believe just the volume of people 0:16:19.480 --> 0:16:22.040 that have lined the long walk to see the Queen 0:16:22.440 --> 0:16:25.160 and as a hearst made away, we saw all the 0:16:25.360 --> 0:16:27.760 roses that had been thrown onto the front of it. 0:16:28.040 --> 0:16:30.880 And this, for a lot of the British people, is 0:16:30.920 --> 0:16:34.200 the last time we will really see her. Majesty. She 0:16:34.360 --> 0:16:37.880 now will go into a service at four o'clock. That's 0:16:37.920 --> 0:16:41.600 a committal service, and then later on this evening she'll 0:16:41.600 --> 0:16:45.040 have a private burial with her family and the cameras 0:16:45.040 --> 0:16:48.560 will not be watching any of that, you know. You 0:16:48.600 --> 0:16:52.800 know she mentions the Queen's late husband, the late Queen's 0:16:52.880 --> 0:16:57.120 late husband, Prince Philip. He was Dickie's nephew, dicky Mount 0:16:57.160 --> 0:16:59.920 Betton so and I watched a crown. I did a 0:17:00.040 --> 0:17:02.680 deep dive into this today. Apparently Dickie tried to get 0:17:02.680 --> 0:17:05.080 Prince Charles to marry his granddaughter. I mean they're all 0:17:05.119 --> 0:17:08.199 related anyway, but they wanted to get even more interrelated. 0:17:08.240 --> 0:17:13.680 I guess King Charles now the Third Leanne. What what's 0:17:13.720 --> 0:17:17.400 the Um? What's the feeling, because I know there has 0:17:17.520 --> 0:17:19.760 have been times in the past when people wanted him 0:17:19.760 --> 0:17:24.680 to abdicate and pass the throne straight onto William. He's 0:17:24.680 --> 0:17:29.320 been very vocal about certain Um issues like climate change, 0:17:29.359 --> 0:17:32.360 which made him for for some time unpopular, and now 0:17:32.400 --> 0:17:35.240 I imagine that the left has to at least given 0:17:35.280 --> 0:17:38.560 points for that. How is he being seen now that 0:17:38.600 --> 0:17:43.199 he's sitting on the throne, so to speak? Well, I 0:17:43.240 --> 0:17:45.960 think first of all he has big shoes to follow. 0:17:46.280 --> 0:17:50.280 That's undoubted. His mother reigned over this country for seven 0:17:50.359 --> 0:17:54.440 decades and she's much loved. But one thing that King 0:17:54.560 --> 0:17:57.760 Charles has done, and it's one the people's hearts, is 0:17:57.920 --> 0:18:01.760 as soon as he realized that he was to come 0:18:01.800 --> 0:18:04.879 to the throne, he went to all four corners of 0:18:05.000 --> 0:18:08.520 the UK and he visited his whole kingdom. He started 0:18:08.560 --> 0:18:11.840 off in Scotland, he went in to Northern Ireland, he 0:18:11.960 --> 0:18:14.520 went to Wales and of course we've seen him here 0:18:14.560 --> 0:18:18.000 in England. He's been out and about shaking people's hand, 0:18:18.480 --> 0:18:22.160 connecting with everybody who's come out to pay their respects 0:18:22.200 --> 0:18:25.840 to their mother. We've also seen an emotional speech given 0:18:25.880 --> 0:18:29.600 by him thanking his mother and saying I'm going to 0:18:29.720 --> 0:18:32.800 carry on the legacy, I'm going to carry on the service. 0:18:33.400 --> 0:18:36.680 So really we see Prince King Charles. I always want 0:18:36.680 --> 0:18:39.320 to say Prince Charles, King Charles the third. I know 0:18:39.359 --> 0:18:41.280 it's always on the shoe front of my mind. So 0:18:41.359 --> 0:18:45.320 we see King Charles the third really coming out and 0:18:45.400 --> 0:18:49.680 giving people that reassurance that we need after seven decades. 0:18:49.760 --> 0:18:55.959 I can't remember another queen. Most of my friends you know. 0:18:56.440 --> 0:19:00.520 So he's really gone out and given the reassuring to 0:19:00.640 --> 0:19:03.639 the whole of the United Kingdom that he's here to 0:19:03.920 --> 0:19:08.520 carry on his mother's legacy and he has worked nonstop 0:19:08.560 --> 0:19:12.080 and so many people have recognized that and also felt 0:19:12.359 --> 0:19:15.720 a real sense for him because he's mourning the loss 0:19:15.800 --> 0:19:21.119 of a mother. Well, first of all, um, that's terrible. 0:19:21.119 --> 0:19:22.400 I don't want to make light of that at all. 0:19:22.560 --> 0:19:25.520 It's a tragedy. Everyone loved her and, of course, her 0:19:25.600 --> 0:19:29.760 children for for their loss. I am sorry. Having said that, 0:19:30.240 --> 0:19:34.520 this has to be an incredible PR campaign for the 0:19:34.560 --> 0:19:39.080 United Kingdom because for ten days we've all followed along, 0:19:39.119 --> 0:19:42.400 we've all watched. You know, if you haven't been there, 0:19:42.440 --> 0:19:44.640 you probably want to go and check it out. If 0:19:44.640 --> 0:19:46.440 you have, you may want to go back. I mean 0:19:47.200 --> 0:19:51.080 Um in a way, this has to kind of prove 0:19:51.160 --> 0:19:55.439 how important the world's are too, uh to tourism dollars 0:19:55.520 --> 0:19:57.679 right Ly, and there must be an influx of people 0:19:57.920 --> 0:19:59.639 who want to go to the UK to pay their 0:19:59.640 --> 0:20:03.520 respect and to check it out. I have never seen 0:20:03.600 --> 0:20:06.600 London so busy. I've almost not known what to do 0:20:06.680 --> 0:20:10.240 with myself. People have come in from all over the 0:20:10.280 --> 0:20:13.119 world and I've actually gone and visited the queue a 0:20:13.160 --> 0:20:16.560 few times and reported from the queue, and many people 0:20:16.600 --> 0:20:19.680 I met were foreign who had flown into the country, 0:20:19.960 --> 0:20:23.160 who said the queen had always struck a chord with them, 0:20:23.440 --> 0:20:26.000 especially people from the US. They said we don't have 0:20:26.119 --> 0:20:29.439 this pomp and pageantry and it's something that we really 0:20:29.480 --> 0:20:32.399 wanted to be immersed in and involved in and we 0:20:32.600 --> 0:20:35.600 loved the Queen From Afar. And you are right. It 0:20:35.800 --> 0:20:39.000 is something that has just bought the light here to 0:20:39.080 --> 0:20:42.720 the UK and today I have a feeling, and I'm 0:20:42.760 --> 0:20:47.080 sure many people would agree with me, everything almost went seamlessly. 0:20:47.440 --> 0:20:50.240 It has been so well rehearsed, it has been so 0:20:50.359 --> 0:20:54.760 well practiced. The queen made a lot of those approvals 0:20:54.840 --> 0:20:57.960 for the service that we saw today and I feel 0:20:58.000 --> 0:21:03.640 like London and the UK has done themselves justice. Absolutely agree. Lean. 0:21:03.680 --> 0:21:05.520 We're gonna have you back later in the program that's 0:21:05.560 --> 0:21:09.040 how important this stuff is and how interesting compelling parents 0:21:09.280 --> 0:21:17.840 from Bloomberg radio. All right, it's Monday, it's eleven eighteen ish. 0:21:18.320 --> 0:21:20.359 That means we talk e t F, and when we 0:21:20.400 --> 0:21:23.000 do that we do with Katie Greifeld, cross asset reporter 0:21:23.480 --> 0:21:27.560 for a Bloomberg News N A N C K R 0:21:27.720 --> 0:21:31.200 U Z. What kind of e t F Vance and cruise? 0:21:33.560 --> 0:21:36.480 The world has been waiting for these filings. So, if 0:21:36.480 --> 0:21:40.000 you haven't guessed so, these are filings. They haven't been 0:21:40.040 --> 0:21:41.840 launched at the filings for e t f s that 0:21:41.880 --> 0:21:45.240 would track the personal portfolios of members of Congress and 0:21:45.359 --> 0:21:50.320 their families and their dependent children, because, because members of 0:21:50.359 --> 0:21:52.920 Congress tend to beat the S and P by a mile, 0:21:53.119 --> 0:21:56.240 who knows where they get that kind of investing edge, 0:21:56.920 --> 0:21:59.280 but it's it's the acumen that you need to become 0:21:59.320 --> 0:22:03.479 a good politicians just being great at investing. We have 0:22:03.520 --> 0:22:07.159 aric cultures. He actually crunched the numbers for Bloomberg Intelligence, 0:22:07.480 --> 0:22:10.480 which did prove that point that these portfolios do tend 0:22:10.920 --> 0:22:14.440 to outperform. Whether or not it's going to be like 0:22:14.760 --> 0:22:17.600 a great portfolio, something you would actually want to invest in, 0:22:17.880 --> 0:22:20.760 it's almost guaranteed to generate buzz because obviously there's been 0:22:20.760 --> 0:22:24.320 a lot of controversy when you're talking. Okay, so people 0:22:24.400 --> 0:22:27.000 of our age here, the things we want to invest in, 0:22:27.040 --> 0:22:29.240 our things that make the most money. Yeah, for sure, 0:22:29.320 --> 0:22:35.320 it's different with people in your generations. Yeah, what over, 0:22:35.440 --> 0:22:40.480 General Generalization, Um, but let me tell you about the methodology. 0:22:41.000 --> 0:22:44.359