WEBVTT - Markets, Electric Vehicles, and REITs (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 --> 0:00:15.560 with essential market moving news. Find a Bloomberg Markets podcast 0:00:15.560 --> 0:00:18.439 called Apple Podcast or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:23.160 at Bloomberg dot com slash podcast. For now, let's talk 0:00:23.160 --> 0:00:26.800 about the bond story, because you are seeing a really 0:00:27.000 --> 0:00:29.920 massive historic moment here city coming out in this morning, 0:00:30.320 --> 0:00:32.640 adding to the to the talk about a hundred basis 0:00:32.640 --> 0:00:35.080 points in these next two weeks. Nomura coming out of 0:00:35.120 --> 0:00:38.080 course yesterday saying hundred is down there base case scenario. 0:00:38.520 --> 0:00:41.000 What does that mean for investing? Well, let's bring in 0:00:41.040 --> 0:00:44.880 Aaron Brown, the managing director and portfolio manager over at Pimco, 0:00:45.159 --> 0:00:47.360 of course, to bring a talk about all things macro 0:00:47.440 --> 0:00:50.440 strategy and investing. Aaron, thank you as always for joining us. 0:00:51.080 --> 0:00:55.560 A hundred basis points, how effective is that really relative 0:00:55.560 --> 0:00:58.800 to seventy five basis points? Is there an element perhaps 0:00:59.040 --> 0:01:02.320 of almost panics that comes with the facts of the 0:01:02.360 --> 0:01:06.760 Federal Reserve may have to be that aggressive, you know, 0:01:06.840 --> 0:01:09.720 I think that just given the inflation environment, that we're 0:01:09.760 --> 0:01:12.920 in right now. I don't think one hundred basis points 0:01:12.920 --> 0:01:16.800 should be considered a panicked you know raise. And in fact, 0:01:16.840 --> 0:01:19.560 if you look at what the fixed income pricing market 0:01:19.600 --> 0:01:22.600 is pricing in, there pricing in about nine two basis points. 0:01:22.680 --> 0:01:25.640 So the fixed income markets are ready pretty much priced 0:01:25.720 --> 0:01:29.400 in a hundred basis point move at the July f 0:01:29.440 --> 0:01:31.160 on C meeting, which is a little bit of a 0:01:31.200 --> 0:01:34.000 gift to the FED because they're not going to surprise 0:01:34.160 --> 0:01:37.520 markets if they do, in fact, hike one hundred basis points. 0:01:37.720 --> 0:01:39.960 I also think that the market right now is really 0:01:40.000 --> 0:01:43.959 focused on getting inflation down so well, you know, certainly 0:01:44.000 --> 0:01:46.480 in a normal environment, a hundred basis points would be 0:01:46.520 --> 0:01:50.000 a shock to markets. Given the inflation environment we are 0:01:50.080 --> 0:01:53.280 in right now, I think that's taking precedence over the 0:01:53.320 --> 0:01:56.040 size of the move. That said, you really have to 0:01:56.040 --> 0:01:58.480 think about whether or not it's going to be that effective, 0:01:58.880 --> 0:02:03.680 especially over the short for managing inflation lower. Absolutely, especially um, 0:02:03.720 --> 0:02:06.840 if the problem is on the supply side. Um, there's 0:02:06.960 --> 0:02:09.799 not much of the FED can do. However, you make 0:02:09.840 --> 0:02:13.000 a good point. Everybody is freaking out about the possibility 0:02:13.040 --> 0:02:15.359 of a hundred basis points, and even some of our 0:02:15.400 --> 0:02:19.960 writers this morning, we're calling it an historic rise. But 0:02:20.800 --> 0:02:24.160 the bottom line is, if you look back in history, 0:02:24.200 --> 0:02:27.400 the FED has raised rates by one percent or more 0:02:27.720 --> 0:02:31.200 thirty eight times since nineteen seventies. So it's not as 0:02:31.240 --> 0:02:33.839 if it's a completely new move, right. I mean, we've 0:02:33.840 --> 0:02:38.240 seen Paul Volker do it at five percent in one clip, right, 0:02:38.320 --> 0:02:40.160 That's exactly right. So we have to put this in 0:02:40.200 --> 0:02:43.760 a longer term context. Certainly, over the last a couple 0:02:43.760 --> 0:02:46.919 of decades we haven't seen moves in this size, but 0:02:47.280 --> 0:02:50.720 if you go back overall longer window, we have, and 0:02:50.800 --> 0:02:54.200 we've also been in an inflation environment that's also unprecedented. 0:02:54.240 --> 0:02:57.760 So I think that right now the main focus of 0:02:57.880 --> 0:03:00.840 the FED is getting inflation lower and and doing what 0:03:00.919 --> 0:03:03.920 it takes in order to manage that that number, you know, 0:03:04.040 --> 0:03:07.880 to something closer to where they're comfortable. Okay, but let 0:03:07.960 --> 0:03:11.840 me let me put a counter point to Matt here. Yes, 0:03:11.960 --> 0:03:14.560 thirty eight times, a lot of them were throughout the 0:03:14.600 --> 0:03:17.200 eighties and the vulgar era. But isn't that that's the 0:03:17.280 --> 0:03:19.280 last time we had inflation this high? Right? But it 0:03:19.440 --> 0:03:22.440 isn't isn't the fear here, It's not just the fact 0:03:22.480 --> 0:03:26.320 that Vulgar hiked so aggressively they basically forced the entire 0:03:26.320 --> 0:03:30.240 economy into recession. It's also the idea that after this 0:03:30.560 --> 0:03:33.200 decade of the seventies of inflation, you have this mazed, 0:03:33.320 --> 0:03:37.240 massive deflationary spiral. So Aaron I have to ask, is 0:03:37.280 --> 0:03:40.720 that what we're in store for next? I think that 0:03:40.840 --> 0:03:43.480 what we're likely in store for next is not a 0:03:43.520 --> 0:03:48.000 deflationary spiral, but going back to and probably where the 0:03:48.320 --> 0:03:51.840 comfort is is going back to a two to three 0:03:51.960 --> 0:03:56.560 percent or even two to four percent band for inflation. Um. 0:03:56.640 --> 0:03:59.400 But I do think that there has been a fundamental 0:03:59.480 --> 0:04:04.280 shift over the last couple of years where we're likely 0:04:04.360 --> 0:04:07.440 not going back to the normal that we were in 0:04:07.680 --> 0:04:11.520 in the sort of pre pandemic period, but probably a 0:04:11.600 --> 0:04:14.360 higher normal than what we've been in over the last 0:04:14.400 --> 0:04:16.880 ten years with respect to inflation. And I think that 0:04:16.880 --> 0:04:20.160 that's okay for the FED. I mean, if anything, they 0:04:20.200 --> 0:04:24.360 they're managing to average inflation a little bit higher over 0:04:24.400 --> 0:04:28.000 the secular horizon. But um, you know, going back to 0:04:28.120 --> 0:04:32.400 sort of a disinflationary or deflationary environment I think is 0:04:32.520 --> 0:04:35.039 for for at least over the medium term, is off 0:04:35.040 --> 0:04:38.360 the table. Yeah, I don't think we're getting set up 0:04:38.360 --> 0:04:43.600 for another if we are signed me up, because that 0:04:43.680 --> 0:04:46.680 wasn't really a bad economic situation in terms of what 0:04:46.720 --> 0:04:51.320 you're buying right now. Um, where do you like, where 0:04:51.320 --> 0:04:53.480 the most? Where's the most opportunity on the curve? Gary 0:04:53.480 --> 0:04:55.320 Shilling was in here the other day says he's going 0:04:55.320 --> 0:04:58.920 along thirty years. That's no surprise, Yeah, And I actually 0:04:58.960 --> 0:05:01.120 don't disagree with that. I mean, I think that there 0:05:01.240 --> 0:05:04.680 is fundamental demand um for thirty years, you know, from 0:05:04.720 --> 0:05:07.560 pension funds and from insurance funds that look at the 0:05:07.680 --> 0:05:12.800 US relative to other markets globally and find an attractive yield. 0:05:13.080 --> 0:05:15.080 And I think buying the long end at this point 0:05:15.160 --> 0:05:18.120 also just in a longer term context, makes a lot 0:05:18.160 --> 0:05:21.160 of sense with respect to the fact that you know, 0:05:22.120 --> 0:05:27.160 three percent if you're guaranteed yield and return is pretty attractive. 0:05:27.160 --> 0:05:29.360 In this environment, it's gonna be you're hard pressed to 0:05:29.400 --> 0:05:32.159 get that, you know, in risk assets right now. I 0:05:32.240 --> 0:05:36.120 also think that Muni's offer from a taxable basis offer 0:05:36.360 --> 0:05:39.400 really attractive returns as well. So that's another sort of 0:05:39.400 --> 0:05:44.040 pocket of opportunity that investors should be looking at all. Right, Aaron, 0:05:44.040 --> 0:05:46.000 thanks so much for joining us. Pleasure having you on 0:05:46.279 --> 0:05:49.360 the program today. Aaron Brown there, managing director and portfolio 0:05:49.440 --> 0:05:56.000 manager at PIMCO. We'll stick with this market story here 0:05:56.040 --> 0:05:59.480 because stocks are just plummeting. It is not a pretty picture. 0:05:59.800 --> 0:06:02.919 Uh in the markets today down two percent. I wonder 0:06:02.960 --> 0:06:05.560 if we see a reversal even though there is this 0:06:05.920 --> 0:06:08.400 really massive wall of worry. You've got pp I prices 0:06:08.480 --> 0:06:11.640 that were at an eleven handle following the CPI report 0:06:11.640 --> 0:06:15.400 at nine. Do you have recession odds a hundred basis 0:06:15.440 --> 0:06:18.080 point hikes that are now the base case for Nomurra 0:06:18.240 --> 0:06:20.960 and city. And on top of that, you now have 0:06:21.400 --> 0:06:26.960 Jamie Diamond and James Gorman warning about recession remembers. These 0:06:27.000 --> 0:06:30.240 were two of the people who were so confident in 0:06:30.360 --> 0:06:33.719 consumer strength and now it kind of looks like they're saying, well, yeah, 0:06:33.839 --> 0:06:36.360 that whole recession scenario, there may be something to that. 0:06:37.040 --> 0:06:39.719 So how do you play the markets amid this wall 0:06:39.800 --> 0:06:42.440 of worry? We're gonna ask Brett Ewing, the chief market 0:06:42.520 --> 0:06:46.320 strategist at First Franklin Financial Services. Brett, thank you as 0:06:46.320 --> 0:06:49.400 always for joining. Let's start there a wall of worry. 0:06:49.800 --> 0:06:53.680 Do you hop into this market or not? Well, thanks 0:06:53.720 --> 0:06:58.719 for having me on UM, look the times to get 0:06:58.760 --> 0:07:01.320 out there and start put in some capital work, or 0:07:02.040 --> 0:07:06.040 when times where you have pete worry, and we're certainly 0:07:06.120 --> 0:07:10.120 in those times. Um, we're the economy is likely in 0:07:10.160 --> 0:07:15.400 a recession. UM. I think that the rate hikes are 0:07:15.600 --> 0:07:20.880 certainly getting baked in here for consecutive one percent, probably 0:07:20.920 --> 0:07:24.480 another fifty to seventy five and September. But the way 0:07:24.600 --> 0:07:28.200 we're looking at markets, UM, the question is not when 0:07:28.280 --> 0:07:30.880 we go in recession, it's just how deep it's going 0:07:30.920 --> 0:07:33.760 to be. And we do believe that it will be 0:07:35.160 --> 0:07:38.200 a fairly light recession. But we think that we are 0:07:38.320 --> 0:07:42.440 currently in one, if not soon. We were talking with 0:07:42.520 --> 0:07:47.560 Gary Shilling, who is granted UM well known bear yesterday 0:07:47.600 --> 0:07:51.680 on the program. He says we're about halfway there in 0:07:51.920 --> 0:07:55.000 terms of the market draw down, to use a term 0:07:55.760 --> 0:08:00.200 of our day. We've heard similar things from Michael Urry, 0:08:00.280 --> 0:08:03.040 who also is obviously known for his barish calls. But 0:08:03.600 --> 0:08:05.560 what do you think about that, the fact that we've 0:08:06.440 --> 0:08:10.440 seen valuation compression in the first half and now we're 0:08:10.480 --> 0:08:14.760 about to see the margin compressions. Yeah, I think the 0:08:14.880 --> 0:08:21.800 question is the real question is does inflation keep accelerating? UM? 0:08:22.080 --> 0:08:24.720 I think that's going to force the hand. I think 0:08:24.800 --> 0:08:27.560 the FED has already done their job. We're going to 0:08:27.680 --> 0:08:30.880 see a lot of demand destruction on the second half 0:08:30.920 --> 0:08:34.160 of this year. Um, we're already seeing it across the board. 0:08:34.240 --> 0:08:38.800 The commodity markets are showing it. So, you know, I think, 0:08:39.200 --> 0:08:41.160 have we hit a bottom in the market. I don't 0:08:41.240 --> 0:08:44.559 think that that's our primary issue here. I don't think 0:08:44.640 --> 0:08:48.439 it's got a massive leg down from here. I would 0:08:48.440 --> 0:08:51.200 say that we could go another five to ten percent 0:08:51.360 --> 0:08:54.680 right here, depending on the inflation numbers and how much 0:08:54.760 --> 0:08:58.800 more aggressive the FED would need to get. But isn't 0:08:58.840 --> 0:09:01.719 there a bull ace here for the stock market in 0:09:01.840 --> 0:09:06.760 that if there is a global recession? Isn't the recessionary 0:09:06.800 --> 0:09:08.240 playbook at least and I want to say, in the 0:09:08.280 --> 0:09:11.080 past twenty years or so, to hop right back into 0:09:11.120 --> 0:09:14.719 American markets, you buy American buy the dollar, buy US treasuries, 0:09:14.760 --> 0:09:18.319 by a defensive stocks, big tech. I feel like there 0:09:18.400 --> 0:09:20.760 has to be a bull case here for in the 0:09:20.840 --> 0:09:23.760 worst day scenario, fun flows from the rest of the 0:09:23.800 --> 0:09:28.760 world will rescue the stock market. Why aren't we seeing that? Well? 0:09:28.960 --> 0:09:31.559 I think I think the rest of the world is 0:09:31.600 --> 0:09:36.040 also having quite a bit of trouble here. Um. You know, 0:09:36.120 --> 0:09:40.679 our dollars just skyrocketing on the dollar index, and I 0:09:40.800 --> 0:09:43.520 think that the dollar index will be a big discussion 0:09:43.640 --> 0:09:46.199 in the Jackson Hole conference coming up in late August. 0:09:47.040 --> 0:09:50.719 I'm sure that there's many central bankers from around the 0:09:50.760 --> 0:09:54.600 world that are going to probably been Chairman Powell's here 0:09:54.720 --> 0:09:58.640 on that issue. Um. But I am in the bullish camp. 0:09:58.760 --> 0:10:02.520 Just to be clear, I do believe um in equities, 0:10:02.559 --> 0:10:06.200 and I think equities are absolutely the best asset class 0:10:06.280 --> 0:10:08.520 that you could be in right here. If you were 0:10:08.559 --> 0:10:10.640 putting capital work and you had a three to five 0:10:10.720 --> 0:10:13.679 year time horizon, there's no better place to go right now. 0:10:13.840 --> 0:10:17.120 I think trying to bottom tick is just meaningless right here. 0:10:17.520 --> 0:10:19.640 I do believe that we are going to have these 0:10:19.880 --> 0:10:23.120 inflation numbers start falling off as we move into the fall. 0:10:23.559 --> 0:10:26.320 That's our base case, and you can look at every 0:10:26.400 --> 0:10:29.320 market place. I mean look from getting of June. We've 0:10:29.360 --> 0:10:36.959 got gas down, oils down, coppers down, weeks down, I 0:10:37.040 --> 0:10:40.360 mean everywhere across the board. I believe you're gonna see 0:10:40.400 --> 0:10:42.520 rents roll over a little bit as we get into 0:10:42.600 --> 0:10:46.400 the fall because the v R B o UH scene 0:10:46.640 --> 0:10:49.600 is gonna probably have a correction and rent prices there 0:10:49.800 --> 0:10:53.520 anywhere from ten to I think the consumer is about 0:10:53.559 --> 0:10:58.280 to tighten up, and I think demand destruction the feat 0:10:58.320 --> 0:11:01.559 has already accomplished it. Yeah, it does look like um 0:11:02.440 --> 0:11:05.000 as Dangerous says, it's been to call a peak and inflation. 0:11:05.040 --> 0:11:07.640 It does look like these numbers should be it, because 0:11:07.679 --> 0:11:11.400 we do see eggs rolling over, we do see medals 0:11:11.480 --> 0:11:13.680 coming down, we do see oils coming down. We've seen 0:11:13.720 --> 0:11:16.280 that for the last couple of weeks. So and just 0:11:16.440 --> 0:11:18.440 to add to that, let's look at the labor market. 0:11:18.600 --> 0:11:22.559 I mean, there there's a lot of high level of 0:11:22.720 --> 0:11:27.280 layoffs within the technology sector that are rolling through. My 0:11:27.440 --> 0:11:30.080 sources are telling me it's it's rolling through the I mean, 0:11:30.320 --> 0:11:32.640 you just had the financial some of the financial companies 0:11:32.679 --> 0:11:36.280 report this morning. Layoffs are coming throughout the financial services 0:11:36.320 --> 0:11:39.840 industry as well. And if you look at the jobless claims, 0:11:39.880 --> 0:11:43.120 the four week moving average since the very first rate hike, 0:11:43.440 --> 0:11:47.480 it's up thirty eight percent already. Um And this's gonna 0:11:47.559 --> 0:11:50.920 keep accelerating. And and that's what the Fed wanted to do, 0:11:51.160 --> 0:11:54.280 is cool it off. They've actually done their job, but 0:11:54.440 --> 0:11:57.319 there's no way they can actually stop right here with 0:11:57.480 --> 0:11:59.959 these high headline numbers. Got it all right, Brett, thanks 0:12:00.000 --> 0:12:01.559 so much for joining us. Brett, you and their chief 0:12:01.600 --> 0:12:08.440 market strategists at First Franklin Financial Services. It's bringing Travis 0:12:08.520 --> 0:12:11.960 Hestor right now. He's chief Electric vehicle officer over at 0:12:12.040 --> 0:12:16.560 General Motors and uh, this company I think has made 0:12:17.160 --> 0:12:20.640 probably the most impressive electric vehicle of all time in 0:12:20.800 --> 0:12:24.280 the GMC Hummer. Pretty do you know what the Hummer 0:12:24.440 --> 0:12:28.319 can do? We're talking about a thousand horsepower, ten thousand 0:12:28.440 --> 0:12:32.200 pound feet of torque. It can crab walk. Travis, thanks 0:12:32.240 --> 0:12:36.080 for joining us. UM Now, most of us probably can't 0:12:36.120 --> 0:12:38.800 afford a Hummer, or we'd have to stretch to get it. 0:12:39.080 --> 0:12:43.640 But are these things coming down to price points that 0:12:43.720 --> 0:12:48.839 the average American could get into? Yeah, Hi, Matte, nice 0:12:48.840 --> 0:12:52.439 to be Thanks for having us son. Yes, we you know, 0:12:52.640 --> 0:12:55.880 I said, General Motives. We're very much into EVS for 0:12:55.960 --> 0:12:59.439 everybody in our vehicles and in our charging network. And 0:13:00.000 --> 0:13:02.120 from a vehicle point of view, you're right. The Hummer 0:13:02.240 --> 0:13:06.040 is a fantastic vehicle. It can do trab walking, it 0:13:06.120 --> 0:13:08.120 can do it has a what's to freedom mode, which 0:13:08.160 --> 0:13:11.640 is an acceleration mode, which is just fantastic. UM but 0:13:11.800 --> 0:13:16.240 it are more affordable, and you have sub thirty dollar 0:13:16.320 --> 0:13:18.080 cars like the Bolt from the Bolt of the UV, 0:13:18.960 --> 0:13:24.559 which are fantastic vehicles and very affordable and have some 0:13:24.679 --> 0:13:28.480 of our latest technology like take the Bolt EUV has 0:13:28.679 --> 0:13:33.240 the latest super cruse technology that's available UM and leads 0:13:33.880 --> 0:13:36.839 in almost any segment. So yeah, we have we have 0:13:37.040 --> 0:13:41.760 price points and vehicles from low affordable vehicles through to 0:13:41.840 --> 0:13:44.440 some more expensive vehicles and everything in between. I'm looking 0:13:44.480 --> 0:13:47.000 at Hannah Elliott right now. She's walking right outside the 0:13:47.040 --> 0:13:49.920 Bloomberg Interactive Broker studio and she just did an excellent 0:13:50.040 --> 0:13:53.000 piece on the Hummer that I'm sure you saw the 0:13:53.200 --> 0:13:56.120 cover cover piece for Bloomberg Pursuit. She's standing on the 0:13:56.200 --> 0:13:59.319 hood of the truck. UM on the other in the 0:13:59.360 --> 0:14:01.320 spectrum we talk about the Bolt, right. I was lucky 0:14:01.400 --> 0:14:04.599 enough to drive around Detroit UM with Mark Royce in 0:14:04.720 --> 0:14:08.160 his Bolt. I think it was the first generation and 0:14:09.160 --> 0:14:13.040 UM just the perfect vehicle for somebody on a budget 0:14:13.080 --> 0:14:16.160 who wants to get around without a big carbon footprint. 0:14:16.280 --> 0:14:18.600 Can you produce enough though, I mean, I know there's 0:14:18.640 --> 0:14:22.960 a huge chip shortage right now that stranded some vehicles. 0:14:23.800 --> 0:14:28.600 My Silverado truck included on lots. So what's the chip 0:14:28.680 --> 0:14:33.440 situation Like, Yeah, there's no doubt with UM, you know, 0:14:33.560 --> 0:14:37.480 the global economy and COVID and lots of supply chain 0:14:37.600 --> 0:14:40.680 issues that there's been straying in the in the supply 0:14:40.800 --> 0:14:44.440 chain network. But we're optimistic that we are in doing 0:14:44.520 --> 0:14:48.400 everything we can every day to UM produce as many 0:14:48.560 --> 0:14:51.680 vehicles that our customers desire. You know, we have a long, 0:14:51.840 --> 0:14:54.800 wide inglist because we have such great vehicles, but we 0:14:54.880 --> 0:14:56.280 do a lot to try and get them out and 0:14:56.480 --> 0:15:00.160 you know, the situation is continuing to improve by you know, 0:15:00.200 --> 0:15:05.080 it evolves every day. The area is UM increased clarity 0:15:05.160 --> 0:15:09.080 coming every day and we're getting better and faster every day. UM. 0:15:09.840 --> 0:15:13.600 But yeah, we're optimistic because we go forward. Matt Travis, 0:15:13.680 --> 0:15:16.320 I feel like everyone is getting into the e V 0:15:16.520 --> 0:15:19.120 game now. Naturally you have Tesla, you got GM, you 0:15:19.200 --> 0:15:23.000 got Forward, you name it. Everyone is hopping into this market. 0:15:23.000 --> 0:15:26.520 But I'm curious does the infrastructure really support it here 0:15:26.880 --> 0:15:29.360 when you don't actually have this network of charging stations 0:15:29.400 --> 0:15:31.040 that kind of funding. I think a lot of people 0:15:31.080 --> 0:15:34.240 expected from the White House, from the government, from the 0:15:34.360 --> 0:15:38.040 states like California, for example, who are very go green 0:15:38.640 --> 0:15:43.320 that doesn't necessarily exist yet. So in your opinion, I 0:15:43.360 --> 0:15:47.480 guess my question is twofold. One, how is GM differentiated 0:15:47.840 --> 0:15:51.280 at all? And two does it feel like the market 0:15:51.320 --> 0:15:56.480 is getting ahead of itself? Thank you, that's a great 0:15:56.680 --> 0:16:00.440 question creating. And uh, you know, we might have announcement 0:16:00.560 --> 0:16:04.680 yesterday of this coast to coast charging infrastructure network which 0:16:04.760 --> 0:16:08.680 is very significant. Uh you know, it's two thousand charging stalls, 0:16:08.760 --> 0:16:12.600 it's five hundred locations. Importantly, they're all three hundred and 0:16:12.680 --> 0:16:17.280 fifty DC fast charge stations, which allows you to put 0:16:17.320 --> 0:16:19.080 a lot of energy into the vehicle in a very 0:16:19.120 --> 0:16:22.520 short amount of time. They'll be co branded Pilot Flying 0:16:22.680 --> 0:16:26.680 J and Ultium Charge three sixty Ultium Charge three sixty 0:16:26.960 --> 0:16:32.160 GMS network that aligns eleven different charge poard operators and 0:16:32.280 --> 0:16:37.080 gives you, in this particular announcement yesterday, some very beneficial 0:16:37.240 --> 0:16:41.040 things to the GM customers who buy our vehicles, things 0:16:41.120 --> 0:16:47.400 like exclusive reservations, discounts on charging, a really great technology 0:16:47.480 --> 0:16:49.440 called plug and charge, which means you don't need to 0:16:49.520 --> 0:16:52.920 use credit cards anymore. You just plug them, the charge 0:16:52.960 --> 0:16:54.960 poort into the vehicle and the payment's taken care of. 0:16:55.840 --> 0:16:59.480 Integration into the vehicle what we call our my Brand apps, 0:16:59.520 --> 0:17:03.000 which are like the Chevrolet App or the Cadillac App, 0:17:03.360 --> 0:17:06.760 and that helps you to get real time charger availability, 0:17:07.119 --> 0:17:09.920 that does route planning, It allows you to make those 0:17:10.000 --> 0:17:13.919 coast to coast trips. And so it's a very significant 0:17:14.080 --> 0:17:17.639 um uh you know, north to south, east to west, 0:17:17.880 --> 0:17:21.240 city to city announcement. But as part of the GM 0:17:21.320 --> 0:17:25.200 Multium Charge three S network, we've previously announced a seven 0:17:25.320 --> 0:17:29.200 hundred and fifty million dollar investment into that infrastructure. That 0:17:29.320 --> 0:17:34.720 includes forty level two charges around dealer communities where we 0:17:34.800 --> 0:17:39.399 all live and work. It includes three thousand, two hundred 0:17:39.400 --> 0:17:42.640 and fifty d C fast charges in the inner city environment, 0:17:42.920 --> 0:17:45.159 which we do with our great partner e v Go. 0:17:46.040 --> 0:17:48.720 UM So, we know it's a pretty comprehensive network that's 0:17:48.720 --> 0:17:51.919 being built out here, and you know it's evolving at 0:17:51.960 --> 0:17:54.159 the same rate that evs are coming to market. And 0:17:54.880 --> 0:17:57.360 you know, we're in this latest announcement we just made, 0:17:57.400 --> 0:18:00.560 we will be getting that interstate free a charge are 0:18:00.600 --> 0:18:04.560 installed early here in two thousand and twenty three. We're 0:18:04.600 --> 0:18:07.560 moving pretty rapidly. Again, very cool, Hey Travis, tell us 0:18:07.560 --> 0:18:11.159 about you your job and you know how it's changed 0:18:11.359 --> 0:18:13.119 over the years at General Motors. I know you were 0:18:13.160 --> 0:18:16.560 the chief engineer for the Cadillac CT six, and you've 0:18:16.600 --> 0:18:21.719 held engineering positions with other on other i CE projects. 0:18:21.840 --> 0:18:25.879 Now you're um, now you're running the growth or the 0:18:25.960 --> 0:18:32.479 electric operations. What's the difference. Uh, yeah, So I've been 0:18:32.560 --> 0:18:36.000 with GM for almost twenty six years now, lots of it, Matt. 0:18:36.080 --> 0:18:38.280 As you said, I was a chief engineer on vehicles 0:18:38.359 --> 0:18:41.520 for a long time, UM, which was great because we 0:18:41.600 --> 0:18:44.920 do just such great vehicles. But as things have evolved here, 0:18:45.359 --> 0:18:50.360 you know, our technology development on electric vehicles and autonomous 0:18:50.480 --> 0:18:54.439 vehicles is just surging. It great. Rights I've been involved 0:18:54.480 --> 0:18:57.520 with both of them on the product development side, but 0:18:57.680 --> 0:18:59.919 now I'm lucky enough to get the opportunity to how 0:19:00.160 --> 0:19:03.159 developed this on the infrastructure side and some of the 0:19:03.240 --> 0:19:07.960 energy management side. And this is a highly fast evolving 0:19:08.520 --> 0:19:13.440 area of our industry. And you know, the US has 0:19:13.480 --> 0:19:17.600 such a great infrastructure with its freeway and highway networks. 0:19:18.200 --> 0:19:21.200 It's time to get the electric vehicle infrastructure side of 0:19:21.280 --> 0:19:24.320 that up and running. And I have a fabulous team 0:19:24.359 --> 0:19:28.160 of people who helped do that, and we have fabulous partners, 0:19:28.680 --> 0:19:31.800 people like Pilot Flying J and even EGO, who help 0:19:31.880 --> 0:19:34.240 us UM get that up and running, and then we're 0:19:34.240 --> 0:19:35.800 going to be able to help us execute that. So 0:19:35.960 --> 0:19:38.760 it's it's a fairly you know. It's our industry is 0:19:38.800 --> 0:19:42.320 evolving and our our roles are changing, and it's exciting. 0:19:42.400 --> 0:19:44.840 To be honest with you, it's I can't think of 0:19:45.000 --> 0:19:47.680 a more exciting time to be in our industry compared 0:19:47.720 --> 0:19:51.159 to the last hundred years. It's it's it's fantastic. I 0:19:51.200 --> 0:19:54.800 gotta say I would agree late sixties maybe late sixties, 0:19:55.359 --> 0:19:58.399 I'd be there right with the Camaro. But in any case, Travis, 0:19:58.480 --> 0:19:59.919 great to have you on. Thanks so much for joy 0:20:00.040 --> 0:20:09.840 in US chief Electric Vehicle Officer for General Motors. As 0:20:09.920 --> 0:20:14.920 we've been focused on today, more high, well high is 0:20:15.800 --> 0:20:18.720 an understatement. More massive inflation prints. With the p p 0:20:18.840 --> 0:20:21.560 I coming out at eleven point three yesterday, with the 0:20:21.600 --> 0:20:23.919 c p I out at nine point one, let's talk 0:20:23.960 --> 0:20:27.320 with someone who can maybe offer you a solution in 0:20:27.520 --> 0:20:30.040 terms of the right hedge. David Auerbach joins us right now, 0:20:30.119 --> 0:20:35.159 managing director from Armada E. T F Advisors. And the 0:20:35.240 --> 0:20:38.120 cool thing is David with you and my co anchor 0:20:38.160 --> 0:20:42.600 Kritty Gutta, I can say it's great to have y'all here. Yeah, 0:20:42.840 --> 0:20:46.440 it definitely is. David got his b A, his b 0:20:46.640 --> 0:20:51.840 A at Texas and his NBA at s m U. Well, 0:20:51.880 --> 0:20:54.600 the only reason he's telling me that is because for 0:20:55.000 --> 0:20:58.080 your information, David, and for our entire audience is my 0:20:58.119 --> 0:20:59.840 brother actually went to s m U. I grew up here. 0:21:00.000 --> 0:21:02.280 To me, I'm a Dallas I'm a Dallas gal. I 0:21:02.359 --> 0:21:05.639 spent a few years hitting the bars around s m US. 0:21:06.600 --> 0:21:08.760 My favorite places Highland Park one of my favorite places 0:21:08.800 --> 0:21:11.720 to hang out. Let's get back to well, actually it's 0:21:11.800 --> 0:21:16.000 it's really a real real estate and partly residential story 0:21:16.080 --> 0:21:17.880 that you have for us, David, right, because you think 0:21:17.960 --> 0:21:21.760 this is a great way to hedge against inflation. Absolutely, 0:21:21.800 --> 0:21:24.280 and thanks so much for having me really appreciate it 0:21:24.320 --> 0:21:26.840 and love the Dallas ties. That's so cool. You know, 0:21:26.960 --> 0:21:29.520 we take a very uniquepproach at our MADA. When we 0:21:29.600 --> 0:21:32.159 launched the Home Appreciation US RE d E t F 0:21:32.600 --> 0:21:35.239 in March, we have this view that we're building our 0:21:35.280 --> 0:21:38.840 fund on two fund principles. Number one, where people relocating 0:21:38.880 --> 0:21:42.360 across the country and then which the residential read segments 0:21:42.400 --> 0:21:46.600 are benefiting from that relocation. From where we sit, we 0:21:46.840 --> 0:21:50.040 know that real estate is personal. There's If there's one 0:21:50.080 --> 0:21:52.000 thing that the three of us all have in common, 0:21:52.119 --> 0:21:54.200 is that we're very fortunate enough to go to sleep 0:21:54.240 --> 0:21:56.680 with the roof over our head. Whether we live in 0:21:56.720 --> 0:22:00.800 an apartment, we rent, the house where we live is home, 0:22:01.400 --> 0:22:04.000 and that home is the most important investment decision that 0:22:04.160 --> 0:22:08.320 you make every single day. And as you mentioned about inflation, 0:22:09.080 --> 0:22:12.359 well we know that interest rates are going up basis 0:22:12.400 --> 0:22:15.200 points lock it in for sure, most likely a hundred 0:22:15.280 --> 0:22:17.520 at this rate. But what that means is that cost 0:22:17.600 --> 0:22:20.480 of that mortgage now gets more expensive. You have to 0:22:20.560 --> 0:22:22.920 come more to the table with the down payment, and 0:22:23.040 --> 0:22:25.920 so that's going to affect many first time home buyers 0:22:26.240 --> 0:22:28.159 and those that are probably in the market right now 0:22:28.320 --> 0:22:31.639 trying to buy that house. And for so many people 0:22:31.840 --> 0:22:34.879 it's just been impossible, right, I mean, not only were 0:22:34.920 --> 0:22:37.520 they priced out of the market when mortgage trades were cheap, 0:22:37.640 --> 0:22:39.960 now they have no chance of getting in. I know 0:22:40.200 --> 0:22:43.480 a lot of people just anecdotally who can't buy a house, 0:22:43.600 --> 0:22:45.960 and I know people who can't sell a house because 0:22:46.000 --> 0:22:49.000 the buyers just can't afford it. Now is that going 0:22:49.040 --> 0:22:52.120 to change? You know? I would say in the back 0:22:52.200 --> 0:22:54.919 half of the year, we would see some moderation. But frankly, 0:22:54.960 --> 0:22:57.040 I also think part of plays into that old number 0:22:57.080 --> 0:23:00.680 one rule of real estate location, location, location ship. If 0:23:00.720 --> 0:23:03.040 you go talk to folks that are in Nashville or 0:23:03.240 --> 0:23:06.280 Charlotte or in Austin, you know, they may have a 0:23:06.359 --> 0:23:10.080 different perspective. Right now, my neighbor across the streets sold 0:23:10.200 --> 0:23:13.159 his house within a week here in Dallas and almost 0:23:13.200 --> 0:23:15.920 got full offer on his property. And so, you know, 0:23:16.000 --> 0:23:18.880 I think there are pockets that you're still seeing massive, 0:23:19.119 --> 0:23:23.040 massive strength. But the bigger problem here is that we 0:23:23.200 --> 0:23:26.560 all know there is a massive supply demand and balance 0:23:26.640 --> 0:23:30.240