Speaker 1: Welcome to the Bloomberg P and L Podcast. I'm pim Fox.
Speaker 1: Along with my co host Lisa Abramowitz. Each day we
Speaker 1: bring you the most important, noteworthy, and useful interviews for
Speaker 1: you and your money, whether you're at the grocery store
Speaker 1: or the trading floor. Find the Bloomberg P M L
Speaker 1: Podcast on Apple Podcasts, SoundCloud and Bloomberg dot Com. Well,
Speaker 1: our Russian President Vladimir Putin has been condemning North Korea's
Speaker 1: ongoing nuclear and missile program. He describes the tests as
Speaker 1: a flagrant violation of u N rules, but he does
Speaker 1: say that resolving the crisis is impossible without fresh talks.
Speaker 1: Here to tell us more is Ariel Cohen. He is
Speaker 1: a Senior Fellow at the Atlantic Council and director of
Speaker 1: the Center for Energy and Natural Resources and Geopolitics at
Speaker 1: the I A g. S. And he joined us on
Speaker 1: the phone. Ariel, thank you very much for being with us.
Speaker 1: What do you make of President Vadomir Putin's comments and
Speaker 1: also his conference with the joint news conference with the
Speaker 1: South Korean leader mun Ja In the best case scenario,
Speaker 1: puting is trying to elbow himself into a negotiating position
Speaker 1: and be a mediator. But I'm looking at the worst
Speaker 1: case scenario in which Russia is trying to replace China
Speaker 1: as the great power sponsor of North Korea. Uh. The
Speaker 1: remarks were unprecedented because Kim Jong un is breaking decades
Speaker 1: long policy of non proliferation that the Soviet Union and
Speaker 1: then Russia, China and the five permanent members of the
Speaker 1: United Nations, including the United States, we're always supporting. We
Speaker 1: were always against proliferating nuclear weapons to new actors, be
Speaker 1: at Pakistan or Iran or North Korea. And what we
Speaker 1: see now is the sea change in which Russia is
Speaker 1: effectively supporting Kim Jong saying, no sanctions, no military action.
Speaker 1: So what are we supposed to do? Uh to kiss him?
Speaker 1: So uh, this is bad news. And also I'm looking
Speaker 1: how the North Korean missile nuclear weapons um and UH
Speaker 1: miniaturization of warheads capacities are going up. And I suspect
Speaker 1: I don't have a proof. I don't have access to
Speaker 1: classified materials or intercepts of the emails or phone calls,
Speaker 1: but I suspect maybe, just maybe Russian technology is leaking
Speaker 1: into North Korea as we speak. Well, maybe you could
Speaker 1: give us the context for us because this would not
Speaker 1: be the first time that Russia or in previous guys
Speaker 1: is the Soviet Union was a supporter of North Korea. Absolutely,
Speaker 1: the grandfather other Um of the current leader Kim Uh
Speaker 1: Kim ill songs Uh he said, I believe he even
Speaker 1: saw himself maybe as a as a competitor or as
Speaker 1: a challenger to the mantle of of leader to Maltzi tongue.
Speaker 1: At the time, well, he was of course a much
Speaker 1: smaller player, but he was indeed an asset of the
Speaker 1: Russian of the Soviet military. He served in the Soviet
Speaker 1: military as they rolled Uh into Korea during the war
Speaker 1: with Japan. Uh and Uh he indeed was very He
Speaker 1: was a Stalinist. He he was the product of that era,
Speaker 1: a totalitary and leader. What's fascinating with North Korea. North
Speaker 1: Korea is probably the only Uh Stalinist dictatorship left on
Speaker 1: the planet. With his parades and with absolute political reporting,
Speaker 1: when people are ratting each other out to the authorities,
Speaker 1: Uh so Um. With time, they started to push away
Speaker 1: his son Uh pushed away both the Russian faction and
Speaker 1: the Chinese faction eventually, and now the grandson Um Uh
Speaker 1: is of course cracking down on the pro Chinese and
Speaker 1: even killing some of the members of his family who
Speaker 1: are pro China. So the relationship with China is complicated.
Speaker 1: But nevertheless, both China and Russia are using North Korea
Speaker 1: as a battering ramp against the United States and our
Speaker 1: interests in the Pacific, as well as against our allies, uh,
Speaker 1: the Japanese and the South Koreas. So can you lay
Speaker 1: out a scenario in which there is some resolution that
Speaker 1: is peaceful. Well in the ideal world, uh and uh
Speaker 1: this this looks less and less realistic in the ideal world.
Speaker 1: The great hours, the US, China, and Russia. We'll say,
Speaker 1: we don't need a malignant proliferator. We know about the
Speaker 1: ties between North Korea and Iran. UM. Most probably Iranians
Speaker 1: have more money from oil sales. They give the money
Speaker 1: to Kim. Kim also proliferated nuclear uh weapons technology to Syria.
Speaker 1: You remember in two thousand and uh seven, I believe
Speaker 1: we're two thousand and six, the Israelis in a night
Speaker 1: strike destroyed uh a plutonium reactor in Syria, a reactor
Speaker 1: that was based on North Korean technology. Uh. So Uh,
Speaker 1: they are a malignant proliferator and great powers if they
Speaker 1: were responsible, if they behaved as adults would get together
Speaker 1: and squelch uh. That's regime's ability to produce nuclear weapons
Speaker 1: and the means to deliver ballistic missiles. Now we are,
Speaker 1: I think on the cost of the whole new ball
Speaker 1: game in which we may be hit with a nuclear
Speaker 1: weapon from North Korea realistic possibility. I hope as we
Speaker 1: as we all do, we hope this doesn't does not happen.
Speaker 1: I want to thank you Ariel Cohen. He is a
Speaker 1: Senior Fellow at the Atlantic Council, Director of the Center
Speaker 1: for Energy, Natural Resources in Geopolitics. Hurricane Irma has damaged
Speaker 1: buildings and infrastructure in the Eastern Caribbean, packing winds of
Speaker 1: a hundred and eighty five miles per hour. The storm
Speaker 1: made landfall in bar Buddha around who a m. This morning.
Speaker 1: And here to help us understand what's next is Shenando Bassu,
Speaker 1: meteorologist and guess analyst for Bloomberg New Energy Finance. Shenando
Speaker 1: always al asure. Thanks for joining me. Tell us the
Speaker 1: latest on the Hurricane Irma, Hey him, Yeah, great to
Speaker 1: be here. So IRMA very powerful storm right now today.
Speaker 1: As of the advisory put out by the National Hurricane
Speaker 1: Center this morning. The track has actually shifted just a
Speaker 1: little far east, so as it heads up right now, um,
Speaker 1: it's actually heading about you know, northwest, and then once
Speaker 1: it reaches just north of Hispaniola, it's going to be
Speaker 1: making the right turn as we can see on the
Speaker 1: you know, the projected track here, and it'll be grazing
Speaker 1: you know, the east coast of Florida, but of course
Speaker 1: impacting the entire state. The warnings that have gone out
Speaker 1: for this Category five storm are in Puerto Rico, as
Speaker 1: well as the islands of St. Kitts, Nevas, the Virgin Islands,
Speaker 1: and as you said, Hispaniola, Dominican Republican Haiti, Cuba also
Speaker 1: being threatened. Has has there been any update on whether
Speaker 1: this storm is still going to cause widespread destruction in
Speaker 1: those places? It certainly is, you know, very very high winds.
Speaker 1: We have winds in excess of a hundred and seventy
Speaker 1: miles per hour with an incredible storm surge. We expect
Speaker 1: the hurricane itself to strengthen for at least another forty
Speaker 1: eight hours, or strengthen or rather keep its current um
Speaker 1: its current energy going, and then by the time we
Speaker 1: get to a Friday or Saturday. That's when we'll maybe
Speaker 1: start to see a slight decline in its in its power,
Speaker 1: and then it'll probably get downgraded to a Category three
Speaker 1: or four just before making landfall. Well, there's a report that,
Speaker 1: for example, roofs roofs were ripped off buildings and homes
Speaker 1: were flooded on the islands of Saint Bartholomy and Saint
Speaker 1: Martin the eye of the storm passed overhead. Is there
Speaker 1: going to be any lingering effects in terms, let's start
Speaker 1: with transport, and I'm thinking of oil that needs to
Speaker 1: come out of Venezuela and be refined. Yes, So there
Speaker 1: are a few numbers of the number of refineries that
Speaker 1: are in the way. Certainly those are on the islands
Speaker 1: um that you mentioned previously, and also a couple in
Speaker 1: the d R and Haiti, and so any ships that
Speaker 1: are trying to make their way over there certainly not
Speaker 1: going to be able to UM in the coming days. Now,
Speaker 1: as far as the actual assets are conversed concern the refineries,
Speaker 1: those may definitely be out of service until further recovery
Speaker 1: efforts can be put into place. And in many places,
Speaker 1: of course, electricity is out and the infrastructure has been destroyed.
Speaker 1: That's going to take time to rebuild it certainly is. Yes,
Speaker 1: the effects perhaps in the United States because of this
Speaker 1: eastward turn, what will it mean just large amounts of
Speaker 1: rain and wind? Or will it I mean, are we
Speaker 1: still bracing for a hurricane to hit the Florida coast. Yes,
Speaker 1: it's going to you know, it's a major hurricane at
Speaker 1: the end of the day. And yes, that does mean
Speaker 1: a lot of rain, certainly, you know, twenty in parts
Speaker 1: at least, if not more, with very very high winds
Speaker 1: along there along the coast. Because of the trajectory of
Speaker 1: Irma right now, Hurricane Irma, we could see effects as
Speaker 1: far north as the Carolinas into next week, and that's
Speaker 1: something of course that will have to keep an eye
Speaker 1: on as the storm progresses. Will there be any effects
Speaker 1: you think in the Gulf of Mexico as a result
Speaker 1: of Irma? Well, currently, any ship traffic and tanker traffic
Speaker 1: that's out there may very well be affected. Of course,
Speaker 1: this is a very large storm. It covers a very
Speaker 1: large area, and so as a result, we can definitely
Speaker 1: expect some maritime effects in the eastern half of the
Speaker 1: Gulf of Mexico. For sure. Is that unusual that the
Speaker 1: size of the storm, not necessarily the ferocity, but but
Speaker 1: the actual size. The size is not so unusual. I mean,
Speaker 1: we've certainly seen hurricanes that are very large in the
Speaker 1: recent past. UM. But the intensity, of course, as we know,
Speaker 1: this is the most powerful Atlantic hurricane in history, which
Speaker 1: is incredible in of itself. Well, I know also that
Speaker 1: there have been efforts already underway. I mean the President
Speaker 1: has UH already declared a disaster area in order to
Speaker 1: facilitate the emergency evacuation. And Governor Rick Scott said that
Speaker 1: the storm surge could cover your house. We can rebuild buildings,
Speaker 1: but can't rebuild your family. Uh. And he has put
Speaker 1: out an evacuation order. Yes, and I'm glad he has. UH.
Speaker 1: This is going to cause a lot of damage along
Speaker 1: the coast. The storm surge, especially UM puts human lives
Speaker 1: at risk, and so I think this is the right
Speaker 1: thing to do. Well. Uh. Indeed, for example, the season
Speaker 1: opener of the NFL Miami Dolphins Tampa Bay Buccaneers that's
Speaker 1: been postponed because of IRMA, it will be played in
Speaker 1: Miami on November. Then there are we were speaking earlier
Speaker 1: and there are many insurance claims that are going to
Speaker 1: be filed as part of this. What about the industrial
Speaker 1: insurance aspect, you know, the refineries, the ships, all of
Speaker 1: that infrastructure that's got to have commercial insurance. Now, yeah,
Speaker 1: there's definitely going to be commercial impacts. I can't speak
Speaker 1: too much to the insurance side of UM and you
Speaker 1: know that's side of this whole lot, but something we
Speaker 1: should look out well. And in fact, the governor of
Speaker 1: Puerto Rico, Ricardo Rosello, he declared a state of emergency
Speaker 1: and has also activated the National Guard. What about getting
Speaker 1: supplies to people that need them? Is that going to
Speaker 1: be affected by I mean it must be affected by
Speaker 1: the lack of transport. I mean you're not going to
Speaker 1: be able to get water, plywood, batteries and generators, uh,
Speaker 1: if you can't actually physically get it there, right, So,
Speaker 1: as far as proper sans go, they will have to
Speaker 1: be UM. I think, you know, at this point, we're
Speaker 1: we're kind of beyond the time UM that we can
Speaker 1: get things in or out of those areas. So most
Speaker 1: likely we'll have to wait till after the storm passes
Speaker 1: to you know, fly planes in or even UM barges
Speaker 1: or ships that can carry those kinds of goods. Now,
Speaker 1: know what, what have you? Just maybe just give us
Speaker 1: an update of what you've heard, for example, of the
Speaker 1: rebuilding or vamping efforts as a result the Hurricane Harvey
Speaker 1: in the in the Gulf, because I know that was
Speaker 1: that was just the last hurricane. Yeah, yeah, and uh,
Speaker 1: this is the second major hurricane in a row that
Speaker 1: will be making landfall here in the US. Harvey's impacts,
Speaker 1: of course, are still ongoing. I mean, the rebuilding is
Speaker 1: just barely getting started, you know along the coast of Texas. UM,
Speaker 1: the commercial side of things still still feeling those impacts
Speaker 1: as well. I mentioned previously that we had you know,
Speaker 1: gasolene tankers, UM that we're not able to get to
Speaker 1: Florida and you know delivery gatholene. And now as people
Speaker 1: are evacuating, UM, there's definitely some tightness in the supply
Speaker 1: market over there as a result of that. Right, all right, Well,
Speaker 1: thank you very much. Shnandobasu is our meteorologist guess analyst
Speaker 1: for Bloomberg New Energy Finance talking about the hurricane Irma. Well,
Speaker 1: Hurricane Harvey's cost to the victims in the path and
Speaker 1: two taxpayers is still being calculated. Indeed, the governor of
Speaker 1: the state of Texas, Greg Abbott, he said that Texas
Speaker 1: could need more than a hundred and twenty five billion
Speaker 1: dollars from the US government. Well, what role will the
Speaker 1: insurance industry play in this? Jonathan Adams is our senior
Speaker 1: industry executive analyst for insurance. He's for Bloomberg Intelligence and
Speaker 1: he joins US. Now, you know, Jonathan, I'm trying to understand.
Speaker 1: There are so many different types of insurance, and one
Speaker 1: of the things I read recently is that the Consumer
Speaker 1: Federation of America said that only twenty of the people
Speaker 1: in Texas who are affected by Hurricane Harvey have insurance.
Speaker 1: And then when I look at the details, it says
Speaker 1: private property insurance policies normally do not cover flooding. So
Speaker 1: I'm wondering, tell us the sort of disposition of who
Speaker 1: has insurance and who's on the hook for it. Sure,
Speaker 1: I'd be happy to do that. So, UM, in terms
Speaker 1: of consumers, You're exactly right. The number that UM purchase
Speaker 1: insurance independent of their normal homeowners policy is a relatively
Speaker 1: small percentage. UM having said that most of those that
Speaker 1: do are the ones that are located in floodplains, and
Speaker 1: they will UM receive some support from the National Flood
Speaker 1: Insurance Program. So UM that federally run program will UH
Speaker 1: step in and be paying a large portion of the
Speaker 1: total in short loss for UH individual homeowners, for UM
Speaker 1: commercial enterprises, and for other types of losses. For example,
Speaker 1: there were half a million vehicles at least that have
Speaker 1: been estimated to have been damaged in this storm. UM
Speaker 1: ordinary auto policies will pick up that cost. So for
Speaker 1: the private insurance industry, UM, a cost like that will
Speaker 1: in fact be picked up and those individuals will be
Speaker 1: made whole for their loss. Okay, so let's move on
Speaker 1: then to what happens to let's say, these commercial lines
Speaker 1: for things such as property, inland, marine, UH and related lines. Right,
Speaker 1: I mean that that is something that travelers as well
Speaker 1: as CHUB. Well that's the group is responsible for. Is
Speaker 1: that correct? That's exactly right. And UM certainly those companies
Speaker 1: do you have some personal lines coverage, but predominantly they're
Speaker 1: commercial writers, and they will be paying UH some flood
Speaker 1: losses because UH that type of commercial policy, UM does
Speaker 1: have an opportunity to bring in flood coverage UH, and
Speaker 1: some individual companies will be taking that coverage and also
Speaker 1: important business interruption. So if your factory or store is
Speaker 1: closed because of a covered peril, you will receive some
Speaker 1: reimbursement for that closure. UM and companies like Travelers, Chubb,
Speaker 1: and a G all have fairly significant market share relative
Speaker 1: to the industry as a whole, and UM they will
Speaker 1: certainly be UM writing some checks to support UM business
Speaker 1: owners in Houston. Is there is there something that we
Speaker 1: should know about the National Flood Insurance Program and how
Speaker 1: that works alongside private insurance, Well, I think UM. The
Speaker 1: important part of that program is unfortunately that it's not
Speaker 1: priced UM very carefully in terms of the actual exposure
Speaker 1: that it takes. As a result, it's operating at a
Speaker 1: loss today. UM. This particular storm will make that worse.
Speaker 1: And really what Congress needs to do is to adjust
Speaker 1: those prices that the n f I P charges in
Speaker 1: order for it to be a sustainable program in terms
Speaker 1: of what it offers the individuals. Today. UM, it's it's
Speaker 1: pretty good coverage. It's up to town and fifty dollars
Speaker 1: for an existing residents plus a hundred thousand dollars for content. So, uh,
Speaker 1: the coverage is good. It just needs to be priced
Speaker 1: in a fashion that it can really be sustainable for UM.
Speaker 1: All the people that to kind upon it and are
Speaker 1: there private insurance company needs that actually participate in reinsurance
Speaker 1: that's then provided to the National Flood Insurance Program UM.
Speaker 1: There are the the the program has just recently begun
Speaker 1: to reinsure some of its exposure, and there were UM
Speaker 1: quite a few in fact, reinsurers that participated in UM
Speaker 1: a contract where a billion dollars was put into the
Speaker 1: private sector. UM their various limits with regard to that,
Speaker 1: but my estimate is that probably the n f i
Speaker 1: P will collect UM a full billion dollars to deal
Speaker 1: with its losses, and those reinsurers would really run the
Speaker 1: gamut UM they're they're typically smaller companies like a Renaissance
Speaker 1: Rey or Validis, but UM, as I said, participated, so
Speaker 1: it would also likely include the likes of the Munich
Speaker 1: reason the larger entities as well. But generally speaking, that
Speaker 1: risk has been spread broadly and it will affect the
Speaker 1: reinsurance companies, but more importantly UM. It's providing participation by
Speaker 1: the private sector to support this program that, as I said,
Speaker 1: we really need to have continue in the future. Well
Speaker 1: We're going to send that note to Congress. They got
Speaker 1: a lot on their docket that they need to do. Jonathan,
Speaker 1: last point to you, what about specialty insurance for things
Speaker 1: like refineries and oil platforms. UM, those certainly are at
Speaker 1: risk as well, and there are a number of entities
Speaker 1: that are specialty companies. UM. Much of that coverage isn't
Speaker 1: what's called the excess of surplus lines market and UM
Speaker 1: it's highly technical because of the UH the difficulties of
Speaker 1: assessing the risk for those types of plant equipment. But
Speaker 1: they will certainly UM be in the number of did
Speaker 1: ease that will see some reimbursement. Jonathan Adams, thank you
Speaker 1: so much, senior insurance industry analyst for Bloomberg Intelligence. I
Speaker 1: want to turn our attention now to an effort by
Speaker 1: the European Union to put together a regulatory framework that
Speaker 1: they say will protect investors. And this has to do
Speaker 1: with the research that investment professionals receive, how much they
Speaker 1: pay for it, and how much it is actually worth.
Speaker 1: Here to help us understand this issue is Larry tab
Speaker 1: He is the chief executive and the founder of the
Speaker 1: Tab Group. They're based in New York, and he joins
Speaker 1: me here in our eleven three oh studios. Larry, thank
Speaker 1: you very much for being great. I want maybe you
Speaker 1: can just start us off by explaining how these regulations, uh,
Speaker 1: and I'll give the full name of it right it's
Speaker 1: markets in Finance show instruments directive method is the way
Speaker 1: that acronym now explain what it is and how does
Speaker 1: that fit into the world of investing? What is so
Speaker 1: people can understand it. So so this is actually method
Speaker 1: to the first method was somewhere on two thousand four
Speaker 1: there and they're they're updating the rules as we speak,
Speaker 1: or they just finished them. We're looking to go live
Speaker 1: January three. UM. There are a couple of parts to it,
Speaker 1: but what they're trying to do is reduce conflicts of
Speaker 1: interest in the investment process. And one of the biggest
Speaker 1: things that they're trying to do is is focus on
Speaker 1: how research has paid for. Traditionally, research has been kind
Speaker 1: of included, um, you know and being paid for as
Speaker 1: part of the trading commissions. When you send me in
Speaker 1: order I send your research, or I send you more
Speaker 1: likely I send your research on on in the desire
Speaker 1: for you to trade with me. UM, I know this company,
Speaker 1: so you should give your order to me. What what
Speaker 1: Europe is trying to do basically is say that now
Speaker 1: that's kind of inducement to trade. I'm giving you something
Speaker 1: of value on the hopes of you sending me um
Speaker 1: orders um and into certain ecenter. An inducement is almost
Speaker 1: like a bribe. So I'm giving your research for the
Speaker 1: bribe for getting your your order to me. So it's
Speaker 1: not just so, it's not just so. What they're trying
Speaker 1: to do is split the payment for research um away
Speaker 1: from trading commissions and trying to get the by side
Speaker 1: traders to focus only on best execution, not have to
Speaker 1: worry about research. Then have the research valued. So I
Speaker 1: have to make an agreement to value every piece of
Speaker 1: research or every research agreement that I have, and pay
Speaker 1: for it either out of of hard dollars, basically write
Speaker 1: a check for it out of my own P and L,
Speaker 1: or really tightly align that with the customer, uh, the
Speaker 1: actual investor. So basically charge that research back to the
Speaker 1: individual customer. How does that work in a world where
Speaker 1: the research can't be linked? Well, maybe it can, but
Speaker 1: where I would think it'd be difficult to link to
Speaker 1: something that is revenue generating In other words, it's great
Speaker 1: if you're making money, you're generating revenue, but if this
Speaker 1: is all the cost side of the business, how do
Speaker 1: you justify it and price it. Well, it's a little
Speaker 1: easier on the equity side because they're commissions. This is
Speaker 1: really difficult on the fixed income side. And the fixed
Speaker 1: income side is included in the fit as well. So
Speaker 1: now you know, on the fixed income side where you're
Speaker 1: not actually paying you know, basis points and commission or
Speaker 1: in the US, you know, since per share, you actually
Speaker 1: have to figure out a way to value this thing.
Speaker 1: And they're still having problems with that. But um yeah,
Speaker 1: you know people the by side firms. The firms have
Speaker 1: to decide how much is this research worth, whether it's
Speaker 1: could be a sector, a sector that's completely you know,
Speaker 1: we're not really interested, but I but I like these guys.
Speaker 1: They put out great insight. The sector is cool. Right now,
Speaker 1: I'm not investing in it, but I still want the research.
Speaker 1: You still have to come up with a value for
Speaker 1: it and pay for it and then assign that payment
Speaker 1: to your clas in or pay for it out of
Speaker 1: your own pano. So what is the conflict or what
Speaker 1: is the challenge of implementing this and where are we
Speaker 1: in that process because these Securities and Exchange Commission has
Speaker 1: got to have a voice in this. Well, initially this
Speaker 1: was thought to be just a European problem, and the
Speaker 1: sec has basically said, you know what, we're not going
Speaker 1: to deal with this as a European problem and we're
Speaker 1: not going to worry about it. As we talked to
Speaker 1: institutional investors and traders, what we're finding out is that
Speaker 1: the the institutions want one way of handling conflicts of
Speaker 1: interest and payment for research around the globe. As well
Speaker 1: as when you look at investment mandates, you know you
Speaker 1: may not necessarily you know, your investment mandate maybe why
Speaker 1: it might be technology, so it might be Apple. It
Speaker 1: might also be vot a phone, so so you know
Speaker 1: a lot. You know, it may not necessarily be geographically focused.
Speaker 1: So you wind up in these issues where okay, well
Speaker 1: this one, I can you know, charge through commissions as
Speaker 1: in the US it's Apple, but you know this one's
Speaker 1: voting phone. It needs to be paid for directly. So
Speaker 1: the by side firms, the institutional investors kind of want
Speaker 1: one way of doing it. Where we are is that
Speaker 1: in the US, most firms of now are a lot
Speaker 1: of firms, especially the larger ones, are starting to make
Speaker 1: agreements for their research. They've kind of said, you know what,
Speaker 1: here's our research budget budget, here's our execution budget. I'm
Speaker 1: a trader. I only worry about best execution. I might
Speaker 1: tack on a couple more cents per share to pay
Speaker 1: for the research, but the research has very little, if
Speaker 1: any discretion into where I trade. UM that that's a
Speaker 1: that's a significant portion of it. But does it does
Speaker 1: It's not really in fully unbundling in in terms of
Speaker 1: you know what Europe is saying, because there those payments
Speaker 1: need to be then defined to me as an investor, um,
Speaker 1: and how do I charge the client? And what is
Speaker 1: the contract between me, the institutional investor and the pension
Speaker 1: fund And many of the firms have not really developed that.
Speaker 1: And then there are a number of other issues where
Speaker 1: I just said fixed income, best execution, analytics, and a
Speaker 1: couple of other things as well. Market structure issue is
Speaker 1: in terms of dark pools and where things trade. It's
Speaker 1: a pretty encompassing set of regulations. Sounds like this is
Speaker 1: not something that is set in stone by any means
Speaker 1: right now, and that's currently undergoing, you know, a response
Speaker 1: from the industry, Well, the regulations are right, but I
Speaker 1: mean the response from the industry what they're gonna do.
Speaker 1: But there are there are a number of folks, you know,
Speaker 1: we're talking with some of the largestness swial investors and
Speaker 1: they're trying to get ready for China with her. But
Speaker 1: I'm not sure they're going to be there. Thank you
Speaker 1: very much, Larry tab always a pleasure, Chief executive founder
Speaker 1: of the Tab Group based in New York. Thanks for
Speaker 1: listening to the Bloomberg P and L podcast. You can
Speaker 1: subscribe and listen to interviews at Apple Podcasts, SoundCloud, or
Speaker 1: whatever podcast platform you prefer. I'm pim Fox. I'm on
Speaker 1: Twitter at pim Fox. I'm on Twitter at Lisa Abramo.
Speaker 1: It's one before the podcast. You can always catch us
Speaker 1: worldwide on Bloomberg Radio.