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Speaker 1: Geopolitics blot Today, let's step back. Every business day we

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Speaker 1: bring new interviews from CEO market crows, Bloomberg experts, along

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Speaker 1: with essential market moves news bloom Market podcast or wherever

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Speaker 1: podcast dot com or slash Podcast. Capital Management located in

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Speaker 1: some third rate hamlet called Chapel Hill, North Carolina. I mean,

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Speaker 1: I guess you couldn't find any office space in. Mark

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Speaker 1: Paul's a duke guy in Durham, North Carolina. But we'll

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Speaker 1: check in with Mark anyway. Mark, what are you telling

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Speaker 1: your clients here as they kind of raise all some

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Speaker 1: of these you know, these bricks in this wall of

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Speaker 1: worry here. No, it's a great, great point. And uh,

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Speaker 1: you know, congrats to the boys at University of New

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Speaker 1: Jersey at Durham down the road. Very good. Um, But look,

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Speaker 1: we we are cautious in the current environment. You know,

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Speaker 1: we were living in a world of financial repression. As

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Speaker 1: to me is the biggest problem. Savers are just being

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Speaker 1: punished with these low interest rates. And although the Feds

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Speaker 1: making noises about raising I actually don't think they can.

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Speaker 1: So that'll cause that'll take one of the stressors away

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Speaker 1: when they finally do what I'll call the Powell pivot

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Speaker 1: and he finally admits that he really can't raise rates.

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Speaker 1: You you mentioned that economic growth is slowing very dramatically.

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Speaker 1: We're just gonna see negative growth in Europe in the

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Speaker 1: first quarter, could possibly see little zero growth in the US.

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Speaker 1: And then corporate profits are rolling over, Earnings estimates are

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Speaker 1: being slashed, so we feel that you should be hedged

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Speaker 1: with a capital duh, and hedge funds are are likely

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Speaker 1: to have a much better year this year than they

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Speaker 1: did last year. We still do like one area, which

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Speaker 1: is oil. We think energy is an interesting place to be.

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Speaker 1: Things like MLPs good place to hide. They're just very,

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Speaker 1: very cheap. Because even if everybody wants an e v

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Speaker 1: it will take a third years to everyone to have

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Speaker 1: an EVY. So it's going to take a while before

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Speaker 1: oil is not necessary wants one. That what's true, that's

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Speaker 1: that's the only thing that you know, some of us

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Speaker 1: have range anxiety, right, we like to travel long distances. Um.

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Speaker 1: But but then I think the last thing we're telling

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Speaker 1: people is, uh, don't really stress too much about the

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Speaker 1: noise of geopolitics, really focus on the signal, and um,

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Speaker 1: you know, we think there's lower risk of some big event,

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Speaker 1: and then I think many in the DC area would

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Speaker 1: have us believe but um, you know, we're we're cautious,

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Speaker 1: but but not completely out of markets. So why do

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Speaker 1: you think we've seen such an outperformance of you know,

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Speaker 1: we were just graphing oil. Um, since the pandemic against

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Speaker 1: the producers and the underlying commodity has done so much better.

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Speaker 1: It's great, great, great point. And I think that the challenges,

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Speaker 1: particularly the US, we had a lot of producers that

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Speaker 1: were over levered and a whole bunch of them went

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Speaker 1: out of business, So that clearly impacts the indices that

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Speaker 1: that you know, the broad baskets of those producers. There

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Speaker 1: are some individual companies, you know, my favorite, Diamondback Energy.

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Speaker 1: I would say Fang has outperformed Fang, Facebook, Amazon, Netflix,

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Speaker 1: Google over the past year. Again this year, we think

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Speaker 1: it all out performed for a while. Uh. And then

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Speaker 1: there's a other company like ovent Iv and Marathon Oxy

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Speaker 1: which have done really really well, outperformed oil. But you're right,

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Speaker 1: the basket has underperformed because there's just a lot of

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Speaker 1: companies that uh, this across all industries. You know, we

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Speaker 1: we extended credit to not so credit worthy businesses. UM.

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Speaker 1: I say we, I mean the economy, and some of

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Speaker 1: those went out of business. I guess in in the

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Speaker 1: lockdowns after the pandemic, and it's it's really been tough.

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Speaker 1: And I think one of the reasons oil prices surged

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Speaker 1: so much is so much supply came offline. So mark

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Speaker 1: in the fixed income space, do you guys see opportunities there? Again?

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Speaker 1: We have a federal reserve that is clearly signaled a

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Speaker 1: rising interest rates and if you look at the w

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Speaker 1: I r P function on the Bloomberg terminal, could be

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Speaker 1: as many seven hikes. How do you think about that

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Speaker 1: as a rates to fixed income opportunities? Yeah, I'm gonna

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Speaker 1: take the under. I'm gonna take the way under on that.

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Speaker 1: I don't think there'll be anywhere close to seven. I

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Speaker 1: don't even think there'll be, you know, three or four.

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Speaker 1: I think they probably will try to hike here in March.

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Speaker 1: I think they'll probably wimp out and not do fifty

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Speaker 1: basis points. Um. You know, the challenges have been behind

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Speaker 1: the curve since two thousand, uh for a hundred and

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Speaker 1: something years, the average short term rate roughly equal nominal

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Speaker 1: GDP growth, and you know that hasn't been true for

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Speaker 1: a years, and I think they should get back to

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Speaker 1: a normal functioning interest rate environment. Uh, because that's what

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Speaker 1: capitalism is predicated on. That you know, you can put

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Speaker 1: your capital at work and get and get paid for it.

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Speaker 1: Think about being in Europe or Japan, you have to

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Speaker 1: pay banks to keep your money. At least here you

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Speaker 1: get zero point five. That's why we actually came up

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Speaker 1: with this thing csh new e t F that takes

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Speaker 1: advantage of spack arbitrage to give people something, you know,

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Speaker 1: we think low single digits on their their savings because

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Speaker 1: we think traditional bonds, high yield bonds aren't very high.

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Speaker 1: Taking credit risk, you're taking duration risks, both of which

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Speaker 1: look kind of dicey in this market. So having at

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Speaker 1: least something on your your savings leaving makes a lot

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Speaker 1: of sense. All right, Mark, thank you so much. We

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Speaker 1: appreciate checking in with you. Mark. Yes goo uh. He

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Speaker 1: is with CEO, c I O and founder Morgan Creek

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Speaker 1: Capital Management based in Chapel Hill, North Carolina, which is

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Speaker 1: actually a very very beautiful community there despite the University

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Speaker 1: of North Carolina, and you want to see such a

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Speaker 1: great school and they have such a great basketball history. Yeah,

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Speaker 1: just not quite as great as their friends down route

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Speaker 1: fifteen five oh one at the Duke University. But yeah,

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Speaker 1: we all respect the UNC Chapel Hill there. You're good,

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Speaker 1: good hoops and we love playing against them. This Federal

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Speaker 1: Reserve is gonna be looking clearly at some of the

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Speaker 1: economic data coming up, and we want to check in

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Speaker 1: with Michael McKee covers all things economics for us here, Michael,

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Speaker 1: as you think about this Federal Reserve, we're talking about

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Speaker 1: hiking rates. W I r P is saying seven rate

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Speaker 1: hikes this year. What do you think the Federal Reserve

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Speaker 1: is really looking at in terms of data? Can I

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Speaker 1: also say the word function looks better than ever you

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Speaker 1: I know, we're on radio see it. But it's so

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Speaker 1: improved to the old word function, So I highly recommend

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Speaker 1: people check it out. The thing that's interesting is that

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Speaker 1: we consider one rate hike to be twenty five basis points.

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Speaker 1: That always is that just the standard rate hike measurement. Well,

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Speaker 1: it became that under Alan Greenspan the years before they

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Speaker 1: used to announce what was going on, they would raise

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Speaker 1: it by all kinds of numbers, fifteen or ten or

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Speaker 1: thirty five, whatever they thought was necessary, particularly in the

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Speaker 1: Vulcar years when they were doing UH monetary aggregates as

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Speaker 1: a guide, so they were trying to figure out how

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Speaker 1: much money they'd be creating. But um, at this point

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Speaker 1: the Fed is UH looking at to answer your question,

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Speaker 1: inflation and unemployment. Unemployment, they noted in the Minutes yesterday

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Speaker 1: had pretty much gotten to where they wanted it to be.

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Speaker 1: It's inflation they're worried about. So the Fed is at

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Speaker 1: this point planning on moving in March. By the way,

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Speaker 1: has an employment changed that much or did they just

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Speaker 1: start to get worried enough about inflation that they felt

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Speaker 1: like it was we changed a huge amount. I mean,

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Speaker 1: it's it's already down basically to almost where it was

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Speaker 1: before the pandemic. We were at three point five, three

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Speaker 1: point six, and now we're at three, while we're at four,

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Speaker 1: but we were at three point nine. As more people

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Speaker 1: come back, so pretty much at full employment, we're not

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Speaker 1: going to get the same statistics that we got before

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Speaker 1: the pandemic because people have not come back into the

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Speaker 1: labor force, so that great resignation start. Yeah, well, we're

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Speaker 1: all working, so I don't I don't see any of it.

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Speaker 1: But but you're right, man, it's basis points become the standard.

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Speaker 1: And now they don't even do it by basis points.

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Speaker 1: They're doing it by range of now and then it

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Speaker 1: will be fifty. And what the market is doing, and

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Speaker 1: this is your w I. R. P. Lesson is looking

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Speaker 1: at what the effective FED funds rate is likely to be,

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Speaker 1: which is right now around seven basis points. So if

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Speaker 1: you look at the next move and you see that

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Speaker 1: the implied rate is thirty two basis points, then that's

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Speaker 1: a basis point move. So uh, it's it's a little complicated,

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Speaker 1: but once you get used to it, YouTube like it.

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Speaker 1: You know, in terms of that um uh measured policy

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Speaker 1: behavior and the transparency that the Fed wants to I mean,

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Speaker 1: are we gonna stick with that throughout the pal Fed?

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Speaker 1: Will we ever get back to them saying, you know what,

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Speaker 1: let's have an emergency meeting and you know what, we'll

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Speaker 1: raise my fifty basis points now at five, Well, they've

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Speaker 1: had emergency meetings. They had an emergency meeting, But they

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Speaker 1: can only do an emergency meeting to cuts, right, because

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Speaker 1: the cold do an emergency meeting to raise if they

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Speaker 1: felt it was necessary. It's it's hard to do because

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Speaker 1: I doubt you're legally they can do it, but you're right,

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Speaker 1: it's it would be a shock to markets. Uh. And

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Speaker 1: it was pretty obvious when we hit the pandemic and

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Speaker 1: market seized up and weren't working that they had to

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Speaker 1: cut rate. So the meeting, the emergency meeting they held

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Speaker 1: was not a bad thing. But do you know he

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Speaker 1: was saying this yesterday? Actually I was struggling to remember

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Speaker 1: because I'm getting it was Daniel D. Martino booth Um,

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Speaker 1: And to be fair, her book was titled fed Up,

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Speaker 1: so you can tell where she's coming from. But she

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Speaker 1: was saying yesterday, you know, this isn't cool because the

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Speaker 1: Fed is so careful when it comes to markets, right,

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Speaker 1: they don't want to spoot the markets, but they don't

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Speaker 1: care about the common man paying five dollars at the pump.

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Speaker 1: If they wanted to tackle inflation right now, she was

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Speaker 1: she was saying, and Paul made a great counter argument

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Speaker 1: that really about the supply chain. If they wanted to

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Speaker 1: fight inflation, they would just have an emergency meeting and

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Speaker 1: raise fifty basis points now and maybe six eight months

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Speaker 1: from now. That would slow start to slow business activity.

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Speaker 1: Policy working with a lag, So it's not really going

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Speaker 1: to help. I mean, we were surprised by retail sales

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Speaker 1: yesterday and how good they were, and we've been surprised

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Speaker 1: by how strong uh consumer credit has been. People want

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Speaker 1: to spend money. Well, retail sales disappointed the last two reports.

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Speaker 1: Think about how bad it was in December, and that

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Speaker 1: was Christmas, but that was because October was better, So

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Speaker 1: I mean we pulled it forward. That's you're just basically

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Speaker 1: outlining that why it's so hard for anyone to do

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Speaker 1: monetary policy these days, especially when you're working with a

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Speaker 1: blunt instrument like one interest rate. Well, and to Paul's point,

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Speaker 1: if you're if it's supply constraints that are causing inflation.

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Speaker 1: You know, if if I'm paying so much more for

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Speaker 1: my GMC yukon a T four because they just can't

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Speaker 1: make enough, it doesn't matter if the Fed raises rates.

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Speaker 1: Does the Feds going to raise rates on March sixteenth

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Speaker 1: and on March seventeenth. We aren't going to suddenly have

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Speaker 1: a big supply of semi conductors that all of a

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Speaker 1: sudden show up. So the car problem is going to continue.

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Speaker 1: And that's the issue is we bought. I mean, we've

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Speaker 1: had several separate issues that get rolled into one. The

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Speaker 1: semiconductors issue was a result of a number of factory problems,

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Speaker 1: and then the car issues, uh flowed from that. But

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Speaker 1: then we have other supply chain issues where we ordered

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Speaker 1: so many goods that they couldn't keep up with the

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Speaker 1: shipping of the mall. And that's slowly beginning to rationalize.

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Speaker 1: But we're not there yet. Yeah, we just had the

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Speaker 1: lead class go on from Bloomberg Intelligence. He covers all

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Speaker 1: the ocean shipping companies, the railroads, the truck and companies.

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Speaker 1: He sees it all, and he says he consisted going

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Speaker 1: to stretch into next year. You know, he kind of

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Speaker 1: thought it might be at mid event where we get

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Speaker 1: some meaningful improvement in supply chain. But now he's pushing

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Speaker 1: that out even further so that I have took a

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Speaker 1: great Canadian Pacific investor trip through the Canadian rockies. It

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Speaker 1: was awesome and three day trip, a lot of fun.

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Speaker 1: You know, I bet written the rails what Greg Jared? Yeah,

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Speaker 1: I'm sure he hasn't as a whole boat, you know

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Speaker 1: out in the West. You know, God knows doing what, alright,

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Speaker 1: Michael McKeith, They you so much for joining us giving

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Speaker 1: an update on our federal reserve and how they're looking

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Speaker 1: to move this year. But it just seems like this week, Matt,

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Speaker 1: as we've pointed out the you know, we're really talking

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Speaker 1: about geopolitical issues here, we've got the market off about

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Speaker 1: one point to five percent. Here, we have our e

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Speaker 1: t S. She wants to talk E t F S

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Speaker 1: dying to talk ETFs. I was gonna say, Maestro Macetratra,

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Speaker 1: maybe has taken there's already an e t F s

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Speaker 1: R here E t F S arena in the house

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Speaker 1: right now. Um, And we were talking about an e

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Speaker 1: t F fund earlier, weren't we um E s H

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Speaker 1: hre we talking about E S H earlier? Which is

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Speaker 1: um No, I think those are the sutures. No, it

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Speaker 1: was it was some e t F fund that somehow

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Speaker 1: dealt with SPACs in a way to that's leverage on

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Speaker 1: leverage there, Katie, what do you got for us? Let's ETFs.

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Speaker 1: We can talk about spack ets, we can talk about

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Speaker 1: fixed income et s because it doesn't sound exciting, but

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Speaker 1: there have been a ton of really interesting launches when

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Speaker 1: it comes to fix income ets this week. I mean,

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Speaker 1: just today you had State Street and Blackstone launch and

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Speaker 1: e t F that will be half high yield, half

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Speaker 1: clos and they're trying to really appeal to the retail

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Speaker 1: crowd there, which caught my eye. You also have a

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Speaker 1: bunch of black black Rock alumni debuting UH seven junk

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Speaker 1: bond e t f s just today, and then earlier

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Speaker 1: this week you also had a CDs e t F debut,

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Speaker 1: So it's been a really fascinating week for just bond

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Speaker 1: ETFs in general. Speaking of leverage on leverage, Yeah, who

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Speaker 1: buys e t s these days? Is it retail? Is

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Speaker 1: it institutional? Is it hedge funds? These things? It's a

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Speaker 1: really interesting mix of both. I mean, institutional and professional

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Speaker 1: traders love et s because the liquidity there is so

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Speaker 1: much greater than you would get in buying any sort

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Speaker 1: of individual bond, So they use them often as liquidity sleeves.

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Speaker 1: But you also have a very sleeve liquidity sleeve that

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Speaker 1: I do too. I try to put that in stories

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Speaker 1: whenever I can. But I mean they do appeal to

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Speaker 1: retail because some of the products or some of the

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Speaker 1: asset classes you can get exposure to through an e

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Speaker 1: t F. I mean, if you're a retail trader. You're

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Speaker 1: never going to be buying, you know, Russian debt, You're

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Speaker 1: never going to be buying oil futures, those types of

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Speaker 1: asset classes that you really can't get exposure to. But

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Speaker 1: now you can through an e t F. You can

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Speaker 1: buy it on any sort of brokerage platform. So it's

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Speaker 1: Tony from UBS ever calls me and pitches in e

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Speaker 1: t F to me. That might be the end of

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Speaker 1: our Oh no, are you not in e t F.

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Speaker 1: I don't know. Yeah, I guess I can. I mean

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Speaker 1: that the low fees, I guess they're targeted, which is

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Speaker 1: pretty cool. I don't know, it just feels a little

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Speaker 1: I'd love to see h C S mark Yusco. Right, yes,

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Speaker 1: exactly exactly. So we were talking mark Yusco about and

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Speaker 1: by the way, you know how I found that I

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Speaker 1: couldn't remember what I had typed in, and I just

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Speaker 1: typed an h I S t go And it shows

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Speaker 1: you the history of all the commands that you've typed

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Speaker 1: in on the Bloombergs. You can scroll back. That is

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Speaker 1: a very that is a good another function. You know,

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Speaker 1: I was reading about this fund and I was so

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Speaker 1: mad that I didn't write about it, because it's really

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Speaker 1: interesting basically that UM it feels like he's pitching this

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Speaker 1: e t F as you can use it almost as

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Speaker 1: a money market fund, like just store your cash here.

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Speaker 1: You're probably going to get a few basis points above treasuries.

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Speaker 1: Not very exciting, but you know it should work all right,

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Speaker 1: So the new issue market for e t f s,

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Speaker 1: where are we kind of over the last twelve months?

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Speaker 1: Is it accelerating and we kind of peaked on fire?

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Speaker 1: As they say, yeah, no, you saw a record number

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Speaker 1: of e t f s launched last year, which is

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Speaker 1: interesting to me because they've all been mostly active and thematic.

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Speaker 1: But if you look at where the money is going,

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Speaker 1: it's all too pretty vanilla funds. It's all SMP five

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Speaker 1: hundred index tracking funds. So you're seeing this huge surge

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Speaker 1: in issuance. But I mean, those new funds are attracting

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Speaker 1: very little of the actual money that's flowing into the

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Speaker 1: e t F market, which is largely just dominated by

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Speaker 1: Vanguard and black Rock UM and Vanguard has been the

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Speaker 1: boss of e t s really since their inceptions. Right,

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Speaker 1: they own they own this market. They well, okay, this

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Speaker 1: is the storyline that you have to watch very closely.

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Speaker 1: Black or Vanguard's share of the E t F market

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Speaker 1: has grown every single year for twenty years straight. Black

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Speaker 1: Rock is still your incumbent. I think they control about

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Speaker 1: thirty four percent of all U S E t F assets,

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Speaker 1: Vanguards at twenty nine per cent, So that flippening it's

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Speaker 1: going to happen one day. Maybe it's not this year.

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Speaker 1: But I also just think because of you know, the

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Speaker 1: uh the legend of Jack Bogel and to me, E

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Speaker 1: t F s fits so well with that passive investing legend.

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Speaker 1: But of course they probably have active investing e t

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Speaker 1: f s there as well. They do, and Vanguard will

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Speaker 1: be quick to tell you that they do have active ETFs.

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Speaker 1: But if you look at their AD two product and

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Speaker 1: they just have a T two products, which is also

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Speaker 1: mind blowing, it's mostly passive. That's where all the money is.

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Speaker 1: And I space E t F gets all the Bloomberg

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Speaker 1: News written stuff on E t F and E t

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Speaker 1: F E t F and b I E t f

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Speaker 1: s to get the research there. All right, let's talk

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Speaker 1: global oil. Brent crude ninety cents. We were on I

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Speaker 1: guess we still are on a one watch. I'm hearing

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Speaker 1: some hundred dollar numbers coming out of Wall Street. But

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Speaker 1: when we want to talk oil or commodities, pork bellies, crypto,

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Speaker 1: we go to Mike McLane. He's from Bloomberg Intelligence Commodities. Uh. Analysts,

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Speaker 1: they're uh, Mike, You're in a Bloomberg Interactive broker studio.

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Speaker 1: He's here, Folks. Usually is down in Miami Beach, kicking

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Speaker 1: back at the pool with a cocktail with an umbrella

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Speaker 1: in it, but he is here in New York working

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Speaker 1: this week. Mike, what do you make a crude oil? Here?

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Speaker 1: Are going to see that handle? I think it's part

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Speaker 1: of the process that it did in two thousand and eight.

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Speaker 1: Elevator escalator up, elevator down. So right now we're in

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Speaker 1: that upstage. Today is not so great, but it's factoring

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Speaker 1: a pretty significant armed conflict between you know, in Europe

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Speaker 1: with a large exporter of crudel and a large exporter

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Speaker 1: of grains. To me, that's otherwise, once we get through

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Speaker 1: this period, it happens or not, crudel is going back

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Speaker 1: to fifty and that is are below and because two

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Speaker 1: and two thousand and eight it's peaked at one and

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Speaker 1: then dropped the forty um the next year, and then

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Speaker 1: what happened was that we went up to a hundred

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Speaker 1: for till two thousand eleven. Then the whole U s

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Speaker 1: Shell revolution happened, oil sands in Canada. That's happening again. Now.

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Speaker 1: The differences Matt loves is the evs are really kicking in.

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Speaker 1: That's it's and our consumption in North America peaked in

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Speaker 1: two thousand eighteen, and so it's starting to head lower.

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Speaker 1: So also the key thing is war. Okay, war keeps

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Speaker 1: it elevated and the shorter term, but the big picture

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Speaker 1: is higher prices bring up more supply, and it's worse

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Speaker 1: this time. So here's what that part. At that part,

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Speaker 1: I don't we don't see happening yet, right. We don't

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Speaker 1: see the shale guys recounts pulling more oil out of

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Speaker 1: the ground. We don't see Texas pulling the trigger. They

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Speaker 1: just don't seem to be done at Why why lagging?

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Speaker 1: So what are we doing right now? We're the reciprocal

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Speaker 1: negative prices. We're going to do the exact opposite within

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Speaker 1: the next year. Might be three months high prices now

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Speaker 1: back to the more enduring trend. So let's give you

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Speaker 1: this fact. Crude picked at one in July m July

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Speaker 1: two eight. If it would catch up to pp i'd

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Speaker 1: be two. So that's a bear market that's bouncing within

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Speaker 1: a range. So, yes, it's a lot of fear, but

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Speaker 1: this is just the facts of the market. If you can,

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Speaker 1: you can create more of it. We use less of it.

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Speaker 1: And you know, I came from a corn melt background.

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Speaker 1: Twelve percent of our gasoline is from ethanol, which I

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Speaker 1: know you love. I'm against that. Well, I'm not against

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Speaker 1: it if you don't care about your motor, you know,

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Speaker 1: but it's not good. I don't want to put that

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Speaker 1: in my I will drive the extra mile to get

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Speaker 1: pure gasoline. Really, I don't want And yes you do,

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Speaker 1: I don't care, do I you don't care? I don't care. No, alright,

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Speaker 1: so alright. So but supply and demand here OPEC has

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Speaker 1: remained pretty disciplined. Is that something you expect to continue it? Does?

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Speaker 1: Does OPEC really have that much spare capacity? Well, one

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Speaker 1: of the things we've been hearing from the guests we

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Speaker 1: bring on is okay, Saudi does, and you can see

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Speaker 1: it with OPEC go. It's a really cool chart for

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Speaker 1: spare capacity. Um. But the guests that we have on

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Speaker 1: lately have been doubtful that other countries really have that

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Speaker 1: much spare capacity. And actually you don't see anything on

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Speaker 1: OPEC go besides Saudi Arabia and the UAE. Don't underestimate

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Speaker 1: how prices bring on supply and commodities used to have hair.

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Speaker 1: It's just exactly, it's just so there, detaining to hear

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Speaker 1: it because I remember how we were gonna have peak

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Speaker 1: oil ten years ago, what really peaked consumption in North America?

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Speaker 1: So that will come the disciplines impressive. Iran could come

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Speaker 1: back and look at Venezuela. They have as much oils crude.

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Speaker 1: At some point that comes back in higher prices bringing

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Speaker 1: that on. But I think what's happy now is more

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Speaker 1: than macro. I think we're beginning part of the great

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Speaker 1: reversion of this massive period of economic fiscal, monetary stimulus.

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Speaker 1: And so if if we don't have the war, we

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Speaker 1: face the fet If we do have the war, we

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Speaker 1: have other issues of potential recession. But you know, the

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Speaker 1: unique thing that's really been happening lately, I was impressed

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Speaker 1: with how bitcoin has been a leading indicator. If you

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Speaker 1: come in the morning, like today, bitcoin was heavy the

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Speaker 1: stock market fo yeah, you see, you watch the ticker

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Speaker 1: and then you have those days when stock markets down

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Speaker 1: and Bitcoin starts taking up the stock market files. It's

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Speaker 1: amazing how this crypto has become the leading, the leading

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Speaker 1: indicator in markets. But in the big picture, I think

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Speaker 1: that's what comes out ahead. So I published a piece recently,

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Speaker 1: as you know, lack of supply decline to supply increasing

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Speaker 1: adoptions not not part of most most portfolios Bitcoin, and

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Speaker 1: you look at crude oil, we're using less of you

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Speaker 1: mentioned ethano. I drive electric and I've had it for

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Speaker 1: eight years now. It's great electric. You know what, if

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Speaker 1: any beach, I'll drive it all the way. It's I

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Speaker 1: launed you wait, I shall be vault or a bolt

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Speaker 1: a volt so they don't make them any more, but

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Speaker 1: it's a hybrid. Yeah, So basically I love that car. Yeah. Um,

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Speaker 1: I test drove that when they first came out. So

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Speaker 1: my thing is, as I've been telling Paul and anyone

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Speaker 1: who listened, I love the idea of electric cars. I

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Speaker 1: love the acceleration of electric cars. I missed the vibrations

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Speaker 1: and the sound of an internal combustion engine and shifting

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Speaker 1: gears obviously as well. I love a good hybrid, so

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Speaker 1: I loved the Chevy Vault when that came out, and

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Speaker 1: I don't know why they don't make it anymore. I

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Speaker 1: love uh. The BMW now has um an X five

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Speaker 1: that has an in line six, so fantastic power plant.

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Speaker 1: That's the power plant that made them famous. And a

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Speaker 1: huge like thirty kilowatt battery, so you can drive miles

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Speaker 1: without a motor, but when you need it, you kick

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Speaker 1: it on. It's your enthusiasms. To me, that's profound because

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Speaker 1: that's where it's going, and it's happening more in the

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Speaker 1: wealthier companies. But I heard last year in China to

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Speaker 1: new auto sales were e vs. Now you mentioned hybrids.

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Speaker 1: My mine gets ninety miles for the getting per gill

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00:24:04,840 --> 00:24:06,800
Speaker 1: and and my brother's a mechanics. Is a cool thing

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Speaker 1: about these is they they the engine doesn't work hard,

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00:24:09,680 --> 00:24:12,200
Speaker 1: they last forever because we use electric for stoff and

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Speaker 1: go and the engine only works for the long distances

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Speaker 1: it works. It's a good system. I wish they would

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Speaker 1: make cars where you could easily swap out the batteries

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Speaker 1: because my concern is I buy one now or the

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Speaker 1: thirty kilowatt battery and in ten years from now there's

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00:24:23,119 --> 00:24:26,119
Speaker 1: a five kilowatt battery and the same size. All right,

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Speaker 1: Mike McLoone, thank you so much. We appreciate it. We

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Speaker 1: didn't get to talk pork bellies. We got tripped up

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Speaker 1: by cryptos and concentrated orange. Will do bellies next time,

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Speaker 1: I guarantee it. Thanks for listening to the Bloomberg Markets podcast.

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Speaker 1: You can subscribe and listen to interviews with Apple Podcasts

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00:24:44,680 --> 00:24:48,560
Speaker 1: or whatever podcast platform you prefer. I'm Matt Miller. I'm

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Speaker 1: on Twitter at Matt Miller on ball swheey. I'm on

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Speaker 1: Twitter at pt Sweeney Before the podcast. You can always

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Speaker 1: catch us worldwide at Bloomberg Radio