1 00:00:00,800 --> 00:00:04,040 Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside 2 00:00:04,040 --> 00:00:06,920 Speaker 1: my co host Matt Miller. Every business day, we bring 3 00:00:06,960 --> 00:00:11,520 Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along 4 00:00:11,520 --> 00:00:15,520 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,600 --> 00:00:18,439 Speaker 1: on Apple podcast or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:22,279 Speaker 1: at Bloomberg dot com slash podcast. Let's check in with 7 00:00:22,360 --> 00:00:25,320 Speaker 1: Jennifer Lee, senior economist and Managing director of BEMO Capital Markets. 8 00:00:25,360 --> 00:00:28,560 Speaker 1: Good friend of the show. Uh, Jennifer, what did you 9 00:00:28,680 --> 00:00:32,680 Speaker 1: hear or did you hear anything different from FED Chairman 10 00:00:32,920 --> 00:00:35,560 Speaker 1: j Pale as he uh testified yesterday in front the 11 00:00:35,600 --> 00:00:38,080 Speaker 1: Senate and today in front of the House. Yesterday people 12 00:00:38,120 --> 00:00:40,559 Speaker 1: were saying maybe he wasn't as hawkish as we expected. 13 00:00:40,600 --> 00:00:43,199 Speaker 1: And this morning the big headline was is going to 14 00:00:43,280 --> 00:00:45,640 Speaker 1: be very challenging to hit a soft landing. Yeah, that 15 00:00:45,680 --> 00:00:47,440 Speaker 1: was the headline. So, Jennifer, what did you take away? 16 00:00:48,960 --> 00:00:51,760 Speaker 1: Good morning everyone. So I thought he was again I 17 00:00:51,800 --> 00:00:54,000 Speaker 1: think said his last few game He's been very clear 18 00:00:54,080 --> 00:00:57,400 Speaker 1: and I'm giving him an a for his communications recently. 19 00:00:57,640 --> 00:00:59,720 Speaker 1: But I thought the big takeaway was the fact that 20 00:00:59,800 --> 00:01:02,400 Speaker 1: he did not dismiss the possibility of a hundred basis 21 00:01:02,480 --> 00:01:04,720 Speaker 1: point right, like, um, you know, he said, and this 22 00:01:04,760 --> 00:01:06,440 Speaker 1: is a smart thing to do, like I will never 23 00:01:06,600 --> 00:01:09,319 Speaker 1: take anything off the table for any and all purposes. 24 00:01:09,360 --> 00:01:11,520 Speaker 1: And that's a wise thing to say, because you can't 25 00:01:11,520 --> 00:01:14,720 Speaker 1: dismiss anything. So I don't lessons learned by the way 26 00:01:14,800 --> 00:01:17,520 Speaker 1: Jennifer right, because remember a couple of meetings ago he said, oh, 27 00:01:17,520 --> 00:01:21,520 Speaker 1: seventy now we're not going to do that. Yes, exactly exactly. 28 00:01:21,560 --> 00:01:22,640 Speaker 1: That was like, yeah, it was one of the first 29 00:01:22,640 --> 00:01:25,080 Speaker 1: thing cause I thought about when the market rallied, um, 30 00:01:25,120 --> 00:01:26,959 Speaker 1: you know last week when he said that, they said, oh, 31 00:01:27,000 --> 00:01:29,320 Speaker 1: you don't he's uh, he's dismissing or he's saying that 32 00:01:29,360 --> 00:01:31,160 Speaker 1: the semi five basis points is not comm and I 33 00:01:31,200 --> 00:01:33,560 Speaker 1: can't remember exact words, but I was thinking a hold it. 34 00:01:33,720 --> 00:01:36,240 Speaker 1: Back in May he also sort of dismissed the semi 35 00:01:36,280 --> 00:01:38,360 Speaker 1: five peoper in markets rally. Then look what happened. So 36 00:01:38,600 --> 00:01:40,800 Speaker 1: I don't think anything can be taken off the table, 37 00:01:40,800 --> 00:01:42,960 Speaker 1: as he said, And you know, I'm I don't think 38 00:01:42,959 --> 00:01:45,800 Speaker 1: the hunter basis points it's going to be a thing. 39 00:01:45,880 --> 00:01:47,600 Speaker 1: It's going to become a thing. But the fact that 40 00:01:47,640 --> 00:01:50,680 Speaker 1: he's just or that the entire committee is not putting 41 00:01:50,680 --> 00:01:54,480 Speaker 1: anything off the table, is seeks volumes to their commitment, um, 42 00:01:54,560 --> 00:01:57,000 Speaker 1: you know, to bring insulation back. It's great that they 43 00:01:57,000 --> 00:02:01,000 Speaker 1: had that commitment. Obviously, inflation is the bay of our existence, 44 00:02:01,040 --> 00:02:04,640 Speaker 1: as um UH President Biden said on one of the 45 00:02:04,680 --> 00:02:08,519 Speaker 1: evening talk shows. But can he really do that much 46 00:02:08,560 --> 00:02:13,359 Speaker 1: about it, Jennifer, I mean, um, you know, in all 47 00:02:13,400 --> 00:02:18,280 Speaker 1: of your economics training, Um, what does monetary policy do 48 00:02:18,639 --> 00:02:25,960 Speaker 1: to supply chain problems, supply side problems? Absolutely nothing? Um, Um. 49 00:02:26,040 --> 00:02:29,320 Speaker 1: You know, it's a it's a blunt monetary it's a 50 00:02:29,320 --> 00:02:31,960 Speaker 1: blunt instrument, and it's you know, I'm sarting to hammer 51 00:02:32,000 --> 00:02:34,200 Speaker 1: down on demand and we're already seeing the effects of that. 52 00:02:34,280 --> 00:02:36,560 Speaker 1: But you know, as he has said, you know, um 53 00:02:36,639 --> 00:02:39,600 Speaker 1: very very often that they cannot do anything to make 54 00:02:39,639 --> 00:02:42,760 Speaker 1: those you know, widgets come off of the um, off 55 00:02:42,760 --> 00:02:45,360 Speaker 1: of the conveyor belt even faster. Um. You know, there 56 00:02:45,360 --> 00:02:48,440 Speaker 1: are all these other supply issues that are contributing to 57 00:02:48,880 --> 00:02:52,880 Speaker 1: UM to the inflation, and that part they cannot um control. 58 00:02:53,160 --> 00:02:55,000 Speaker 1: But if they control the amount of demand that it's 59 00:02:55,000 --> 00:02:57,720 Speaker 1: out there, that's you know, that's pushing on the supply chains. 60 00:02:58,160 --> 00:03:00,760 Speaker 1: You know, then they will have I have done their job, 61 00:03:01,560 --> 00:03:04,240 Speaker 1: which is again cooling demanded, and it's starting. We're starting 62 00:03:04,240 --> 00:03:06,799 Speaker 1: to see that already. All right, Jennifer, I get asked you, Hannah, 63 00:03:06,840 --> 00:03:11,519 Speaker 1: what's your recession outlook? Do you have a consent or 64 00:03:11,880 --> 00:03:15,280 Speaker 1: a feel for whether this economy will roll into a recession? 65 00:03:15,280 --> 00:03:17,280 Speaker 1: And if so, how deep, how shallow all that kind 66 00:03:17,280 --> 00:03:18,960 Speaker 1: of stuff. I don't know if you heard me, Jennifer, 67 00:03:19,000 --> 00:03:21,560 Speaker 1: but this morning we heard from George Buckley over Numura. 68 00:03:21,760 --> 00:03:23,960 Speaker 1: He thinks we're going to have five quarters of back 69 00:03:24,000 --> 00:03:28,720 Speaker 1: to back in traction starting in Q four. I heard you. Holy, 70 00:03:29,280 --> 00:03:32,560 Speaker 1: that's that's quite That's an outlier, right, he's an out Yeah, 71 00:03:32,560 --> 00:03:35,880 Speaker 1: it's it's quite headline catching. You know, we've thought we've 72 00:03:35,920 --> 00:03:38,080 Speaker 1: actually been trimming our our growth O. Look, we've got 73 00:03:38,400 --> 00:03:40,640 Speaker 1: we chopped next year down to one percent. We originally 74 00:03:40,640 --> 00:03:42,200 Speaker 1: had one and a half percent of the last move 75 00:03:42,600 --> 00:03:45,280 Speaker 1: But we do not have your traditional you know, back 76 00:03:45,320 --> 00:03:48,280 Speaker 1: to back GDP negative GDP readings. But we do have 77 00:03:48,600 --> 00:03:50,800 Speaker 1: growth grinding slower in the second half of the year. 78 00:03:50,800 --> 00:03:53,440 Speaker 1: The first half is you know, pretty decent, notwithstanding that 79 00:03:53,440 --> 00:03:55,680 Speaker 1: one and a half percent dropping. That's because of again, 80 00:03:55,840 --> 00:03:57,280 Speaker 1: um sort of in the Q one that was because 81 00:03:57,280 --> 00:04:00,520 Speaker 1: of importance and in inventories. But this and half we 82 00:04:00,600 --> 00:04:04,280 Speaker 1: have slowly grinding um slower into into the turn of 83 00:04:04,360 --> 00:04:07,320 Speaker 1: next year, so you know, almost like barely zero percent 84 00:04:07,560 --> 00:04:10,000 Speaker 1: growth in Q four and Q one for example, So 85 00:04:10,080 --> 00:04:12,720 Speaker 1: not an official you know, again negative back to back 86 00:04:12,760 --> 00:04:16,320 Speaker 1: reading for GDP, but enough to have growth grind down 87 00:04:16,360 --> 00:04:18,800 Speaker 1: to about one percent next year. Jennifer, what's your view 88 00:04:18,839 --> 00:04:20,680 Speaker 1: of the consumer? And Matt and I were just talking 89 00:04:20,680 --> 00:04:22,840 Speaker 1: about a story on the Bloomberg terminal. Dard And Restaurants 90 00:04:22,839 --> 00:04:25,760 Speaker 1: reported some better than expected results, their same store sales 91 00:04:25,800 --> 00:04:29,920 Speaker 1: at their restaurants up almost in the quarter ending in May. 92 00:04:29,960 --> 00:04:32,279 Speaker 1: That kind of surprised me given some of the inflationary pressures. 93 00:04:32,279 --> 00:04:33,400 Speaker 1: How do you what do you how do you think 94 00:04:33,400 --> 00:04:37,720 Speaker 1: about the consumer here? I think you know I I 95 00:04:37,760 --> 00:04:39,039 Speaker 1: we say this all the time. You know, you can 96 00:04:39,120 --> 00:04:43,120 Speaker 1: never ever underestimate the US consumer. Obviously, they're under pressure 97 00:04:43,560 --> 00:04:46,279 Speaker 1: from these higher prices, from record gas prices at the 98 00:04:46,279 --> 00:04:48,520 Speaker 1: pump um At the same time, the fact that the 99 00:04:48,560 --> 00:04:51,520 Speaker 1: jawn market remains very tight, the fact that people are 100 00:04:51,560 --> 00:04:54,839 Speaker 1: still getting a regular paycheck, which I think speaks volumes 101 00:04:54,880 --> 00:04:56,520 Speaker 1: for all of this, and then they still have, you know, 102 00:04:56,720 --> 00:04:58,960 Speaker 1: a little nice tidy pile of savings that they can 103 00:04:59,000 --> 00:05:01,680 Speaker 1: fall back on. Um, hopefully they're just going to keep 104 00:05:01,680 --> 00:05:03,159 Speaker 1: it there, I think, just to you know, just to 105 00:05:03,160 --> 00:05:05,480 Speaker 1: make sure everything is okay. But you know, consumers are 106 00:05:05,480 --> 00:05:07,560 Speaker 1: still dining out. You know, you're talking earlier about Old 107 00:05:07,600 --> 00:05:09,640 Speaker 1: Garden for example. You know the fact that they are 108 00:05:09,680 --> 00:05:13,320 Speaker 1: still dining out. You're still um buying sporting goods for examples. UM. 109 00:05:13,360 --> 00:05:15,800 Speaker 1: I think in the last retail sales report, I think 110 00:05:15,839 --> 00:05:17,920 Speaker 1: speaks volumes that you know, the consumer, you can you 111 00:05:17,960 --> 00:05:20,320 Speaker 1: cannot write them off just yet. What about obviously there's 112 00:05:20,320 --> 00:05:23,159 Speaker 1: gonna be What about the job situation. I mean people 113 00:05:23,200 --> 00:05:25,800 Speaker 1: who were looking for jobs and they were being picky, 114 00:05:26,000 --> 00:05:29,920 Speaker 1: is it time for them to uh, you know settle, settle? 115 00:05:30,640 --> 00:05:33,000 Speaker 1: Or people who wanted to sell a house but they 116 00:05:33,000 --> 00:05:36,839 Speaker 1: were kind of on the fence do it now? I 117 00:05:36,839 --> 00:05:38,560 Speaker 1: would say, in terms of the job for the for 118 00:05:38,600 --> 00:05:41,080 Speaker 1: the job market, I mean some you're already seeing you know, 119 00:05:41,279 --> 00:05:43,839 Speaker 1: initial claims picking up already on a four week moving 120 00:05:43,839 --> 00:05:47,400 Speaker 1: average basis, So the job market will not be as 121 00:05:47,440 --> 00:05:49,839 Speaker 1: tight as a that's is already starting to ease up 122 00:05:49,839 --> 00:05:52,159 Speaker 1: a bit. And you know I've been using this example. 123 00:05:52,160 --> 00:05:54,200 Speaker 1: If you are a company that has been looking for 124 00:05:54,360 --> 00:05:56,600 Speaker 1: let's just say you know ten told people and you've 125 00:05:56,600 --> 00:05:58,200 Speaker 1: been looking for a long long time and you still 126 00:05:58,240 --> 00:06:00,680 Speaker 1: can't find anyone. At some point you're gonna think, maybe 127 00:06:00,720 --> 00:06:02,680 Speaker 1: we don't need all those people. Maybe we can just 128 00:06:02,720 --> 00:06:05,640 Speaker 1: do with what we have, Especially with demanding starting to 129 00:06:05,800 --> 00:06:07,320 Speaker 1: ease up a bit, we don't we don't need to 130 00:06:07,360 --> 00:06:09,920 Speaker 1: hire as many. So if you do have several offers 131 00:06:09,920 --> 00:06:12,800 Speaker 1: out there, I would say, take all right, Jennifer. Maybe 132 00:06:12,800 --> 00:06:15,320 Speaker 1: some of our listeners don't know that BEMO stands for 133 00:06:15,320 --> 00:06:18,560 Speaker 1: a Bank of Montreal. Give us a sense of how 134 00:06:18,600 --> 00:06:22,120 Speaker 1: are things up? Is it Ontario? Bank of Montreal Ontario? No, 135 00:06:23,920 --> 00:06:29,559 Speaker 1: that's back of Montreal. Yeah, the MO is just for Montreal. Yes, 136 00:06:29,800 --> 00:06:33,480 Speaker 1: because Montreal is not in Ontario. That's correct. Quebec very 137 00:06:33,520 --> 00:06:35,440 Speaker 1: good talk to us about. Just give us a sense 138 00:06:35,440 --> 00:06:37,720 Speaker 1: how are things in Canada the days? How's the economy, 139 00:06:37,720 --> 00:06:40,080 Speaker 1: how's the COVID, how are how's the consumer? How are 140 00:06:40,120 --> 00:06:43,400 Speaker 1: things to our good friends up north? So we are 141 00:06:44,520 --> 00:06:46,599 Speaker 1: we're similar to what's happening in the US, but our 142 00:06:47,520 --> 00:06:51,040 Speaker 1: our our lockdowns lasted longer, and we're definitely more prevasive, 143 00:06:51,040 --> 00:06:53,680 Speaker 1: pervasive than they were in the US. So because we 144 00:06:53,720 --> 00:06:56,560 Speaker 1: opened up a lot later, well, we had a stronger 145 00:06:56,600 --> 00:06:59,719 Speaker 1: start to the year UM and we're still seeing some 146 00:06:59,720 --> 00:07:02,240 Speaker 1: some pretty decent numbers up until like up until the 147 00:07:02,279 --> 00:07:06,200 Speaker 1: second quarter, but we also see things UM cooling down 148 00:07:06,320 --> 00:07:08,839 Speaker 1: in the second half of the year UM into early 149 00:07:08,920 --> 00:07:12,160 Speaker 1: next year as the banker Canda starts to raise rates UM. 150 00:07:12,320 --> 00:07:14,760 Speaker 1: You know, we almost a lockstep with with with the US. 151 00:07:14,800 --> 00:07:16,640 Speaker 1: I mean, after the semi five basis point right high 152 00:07:17,000 --> 00:07:18,680 Speaker 1: for the Fed last week and then at the strong 153 00:07:18,760 --> 00:07:20,920 Speaker 1: signal that they're going to do it again in July, 154 00:07:21,120 --> 00:07:23,560 Speaker 1: we also raised our our call for the bank to 155 00:07:23,560 --> 00:07:25,840 Speaker 1: go seventy five basis points in July. So, you know, 156 00:07:25,880 --> 00:07:28,520 Speaker 1: the same thing high prices. You know, we just got 157 00:07:28,600 --> 00:07:31,640 Speaker 1: a very strong inflation report UM yesterday at seven points 158 00:07:31,640 --> 00:07:35,480 Speaker 1: seven percent UM. Again there is it's a similar story 159 00:07:35,480 --> 00:07:38,520 Speaker 1: around the world where inflation is that decade highs UM 160 00:07:38,640 --> 00:07:40,840 Speaker 1: or multi decade highs I guess I should say, and 161 00:07:40,960 --> 00:07:44,560 Speaker 1: central banks that are continuing to um to titan and 162 00:07:44,680 --> 00:07:47,240 Speaker 1: tighten sharply. And Jennifer, one of the things I think 163 00:07:47,280 --> 00:07:50,200 Speaker 1: I understand about the Canadian economy, the Canadian consumers, the 164 00:07:50,360 --> 00:07:54,040 Speaker 1: housing home is a bigger part of the personal asset. 165 00:07:54,400 --> 00:07:56,440 Speaker 1: Give us a sense of kind of how the housing 166 00:07:56,480 --> 00:08:00,040 Speaker 1: market is there and how people think about that. So 167 00:08:00,120 --> 00:08:02,240 Speaker 1: the housing market was one of the biggest drivers of 168 00:08:02,280 --> 00:08:06,160 Speaker 1: our of our strong growth, just given years and years 169 00:08:06,200 --> 00:08:10,320 Speaker 1: of super low interest rates and sometimes this this concept 170 00:08:10,360 --> 00:08:13,080 Speaker 1: that you know that housing has nowhere to go up, 171 00:08:13,160 --> 00:08:16,120 Speaker 1: and that's you know, clearly not true. Um. So you 172 00:08:16,160 --> 00:08:18,280 Speaker 1: know now that we've got central banks of the Bank 173 00:08:18,280 --> 00:08:21,520 Speaker 1: Accunta tightening rates, warning that there's that they're going to 174 00:08:21,680 --> 00:08:23,520 Speaker 1: be a lot higher, and you know, there is fear 175 00:08:23,640 --> 00:08:26,440 Speaker 1: that the in that the housing market is going to 176 00:08:27,080 --> 00:08:29,320 Speaker 1: to be in pain because of that, and it's already 177 00:08:29,320 --> 00:08:33,280 Speaker 1: starting to drop considerably. And of course the pandemic didn't 178 00:08:33,280 --> 00:08:35,160 Speaker 1: help with everyone sort of moving moving out of the 179 00:08:35,200 --> 00:08:37,800 Speaker 1: downtown core. I'm just speaking about Toronto right now, moving 180 00:08:37,800 --> 00:08:40,000 Speaker 1: out to the bourbs and you know, getting more house 181 00:08:40,120 --> 00:08:42,640 Speaker 1: for your money, and uh, you know, so that also 182 00:08:42,760 --> 00:08:45,840 Speaker 1: added to the strong demand for housing. But that's starting 183 00:08:45,840 --> 00:08:49,960 Speaker 1: to cool significantly already. All right, Jennifer Lee, thank you 184 00:08:50,000 --> 00:08:52,800 Speaker 1: so much for joining is always appreciate getting your thoughts 185 00:08:53,160 --> 00:08:56,080 Speaker 1: about the global economy and the Canadian economy. As well. 186 00:08:56,160 --> 00:09:00,360 Speaker 1: Jennifer Leasing, economist managing director for PIMO Capital, Mark gets 187 00:09:04,000 --> 00:09:07,440 Speaker 1: the Supreme Court has struck down, as we just reported, 188 00:09:07,600 --> 00:09:11,239 Speaker 1: the New York gun carrying restrictions. New York is famously 189 00:09:11,440 --> 00:09:14,160 Speaker 1: or infamously depending on how you look at it, strict 190 00:09:14,200 --> 00:09:17,120 Speaker 1: about concealed carry licenses and handing them out. You can, 191 00:09:17,200 --> 00:09:21,240 Speaker 1: of course get a license for a handgun, but you 192 00:09:21,280 --> 00:09:23,720 Speaker 1: would normally have to keep it in your home, certainly 193 00:09:23,760 --> 00:09:26,920 Speaker 1: in New York City, certainly in Westchester County, and it's 194 00:09:27,000 --> 00:09:29,680 Speaker 1: very difficult to carry it outside your home. But the 195 00:09:29,679 --> 00:09:34,040 Speaker 1: Supreme Court has avoided that and established your right to 196 00:09:34,080 --> 00:09:38,400 Speaker 1: bear arms any place other than just in your house. 197 00:09:38,559 --> 00:09:43,000 Speaker 1: Just Justice Thomas wrote the majority opinion and the ruling 198 00:09:43,160 --> 00:09:47,680 Speaker 1: was six to three. So um Briar so to Mayor 199 00:09:48,240 --> 00:09:52,240 Speaker 1: and Kagan dissented in the case. There the three and 200 00:09:52,600 --> 00:09:54,360 Speaker 1: this is one of the big cases that we've been 201 00:09:54,360 --> 00:09:58,400 Speaker 1: waiting for. Um. June Grasso is here in the studio 202 00:09:58,480 --> 00:10:01,640 Speaker 1: with us to to give the background on this case 203 00:10:01,679 --> 00:10:04,200 Speaker 1: and tell us what it means. So June, well, you've 204 00:10:04,200 --> 00:10:07,880 Speaker 1: done pretty well so far. Matt uh Well, the background 205 00:10:07,920 --> 00:10:10,440 Speaker 1: on this cases we were we've been expecting this case 206 00:10:10,960 --> 00:10:14,559 Speaker 1: to be decided in this way since the oral arguments, 207 00:10:14,559 --> 00:10:17,199 Speaker 1: because it was pretty clear that the conservative justices and 208 00:10:17,280 --> 00:10:20,120 Speaker 1: you mentioned it's six to three down audiological lines, the 209 00:10:20,160 --> 00:10:24,160 Speaker 1: conservative justices saying that there is this right to carry 210 00:10:24,200 --> 00:10:28,000 Speaker 1: and that New York is it's it's law, which is 211 00:10:28,120 --> 00:10:33,359 Speaker 1: very restrictive, as you mentioned, is unconstitutional. The three justices 212 00:10:33,400 --> 00:10:37,040 Speaker 1: in dissent where the liberal justices. So the question is, 213 00:10:37,080 --> 00:10:39,840 Speaker 1: and I haven't had a chance to read through this yet, 214 00:10:40,200 --> 00:10:42,920 Speaker 1: but the question is just how far the court went 215 00:10:43,000 --> 00:10:46,240 Speaker 1: in this, whether they say that all laws like New 216 00:10:46,320 --> 00:10:50,080 Speaker 1: York's law are or whether or whether or whether there's 217 00:10:50,240 --> 00:10:53,640 Speaker 1: there are certain restrictions for examples, you know, special areas 218 00:10:53,640 --> 00:10:58,440 Speaker 1: where you can't carry guns. Um, it's Justice Thomas has 219 00:10:58,480 --> 00:11:02,280 Speaker 1: been a Second amend an advocate and not that's putting 220 00:11:02,280 --> 00:11:06,760 Speaker 1: it mildly for years and the favor of the Constitution right, well, 221 00:11:06,960 --> 00:11:10,040 Speaker 1: they all say that the that the Second Amendment allows 222 00:11:10,040 --> 00:11:13,680 Speaker 1: you to turn differently, right exactly. I mean up until 223 00:11:13,720 --> 00:11:17,480 Speaker 1: this point. This is the first gun law gun decision 224 00:11:17,600 --> 00:11:20,200 Speaker 1: in a decade. So up until this point in a 225 00:11:20,240 --> 00:11:26,240 Speaker 1: decision written by Justice Scalia, very conservative. Um, you could carry, 226 00:11:26,280 --> 00:11:28,000 Speaker 1: you could have a gun in the home, but this 227 00:11:28,120 --> 00:11:31,240 Speaker 1: takes it another step, a big step, by the way. 228 00:11:31,360 --> 00:11:34,520 Speaker 1: Not to be silly, June, but are there justices on 229 00:11:34,559 --> 00:11:38,400 Speaker 1: the Supreme Court who believe the Second Amendment should be repealed? 230 00:11:38,679 --> 00:11:41,920 Speaker 1: Are there any of those dissenters you think who don't 231 00:11:41,920 --> 00:11:44,760 Speaker 1: believe Americans should have the right to bear arms? Well, 232 00:11:44,800 --> 00:11:46,720 Speaker 1: you know, I think they all. First of all, you 233 00:11:46,760 --> 00:11:50,840 Speaker 1: can't repeal this. To take a constitutional amendment away would 234 00:11:50,880 --> 00:11:54,640 Speaker 1: be it's never been done, my dad, it could be done, um, 235 00:11:54,720 --> 00:11:57,040 Speaker 1: because you need to do so many things. But so 236 00:11:57,559 --> 00:12:01,240 Speaker 1: but I think they all accept the fact in their 237 00:12:01,280 --> 00:12:03,600 Speaker 1: heart of hearts, whether they believe that. I mean, there 238 00:12:03,600 --> 00:12:06,960 Speaker 1: are many many scholars who don't believe that the Second 239 00:12:06,960 --> 00:12:10,640 Speaker 1: Amendment goes in the direction that Heller has put it, 240 00:12:10,679 --> 00:12:13,160 Speaker 1: that it means that everyone can has a right to 241 00:12:13,240 --> 00:12:15,559 Speaker 1: carry a gun or to have a gun in their home. 242 00:12:15,640 --> 00:12:17,920 Speaker 1: I mean, there are many many scholars who look at 243 00:12:17,920 --> 00:12:21,480 Speaker 1: the Second Amendment and say that's not what this amendment meant, 244 00:12:21,520 --> 00:12:24,840 Speaker 1: and that the justices have read into it over the years. 245 00:12:24,880 --> 00:12:27,520 Speaker 1: But I think that everyone at this point accepts the 246 00:12:27,559 --> 00:12:30,560 Speaker 1: fact that the Second Amendment allows you to have a 247 00:12:30,600 --> 00:12:32,520 Speaker 1: gun in the house. Well, and certainly at the time 248 00:12:32,520 --> 00:12:36,000 Speaker 1: it was written everyone had a gun in the house. Well, 249 00:12:36,000 --> 00:12:37,840 Speaker 1: but it was. We don't want to get into a 250 00:12:38,040 --> 00:12:41,199 Speaker 1: historical argument about it. But no, there are I mean, 251 00:12:41,200 --> 00:12:43,840 Speaker 1: there are many many scholars of the Second Amendment who 252 00:12:43,960 --> 00:12:46,840 Speaker 1: don't believe that it was meant to be as it 253 00:12:46,960 --> 00:12:49,120 Speaker 1: is today. And there's a lot of difference between you know, 254 00:12:49,200 --> 00:12:51,840 Speaker 1: the militia and having a gun for of course, protect 255 00:12:51,880 --> 00:12:56,199 Speaker 1: your And of course there are many, uh, scholars and 256 00:12:56,640 --> 00:13:00,400 Speaker 1: justices who see the Constitution as a living document field 257 00:13:00,400 --> 00:13:02,199 Speaker 1: that it should change with the times. And then there 258 00:13:02,200 --> 00:13:04,840 Speaker 1: are the originalists who or what do you call them? 259 00:13:04,840 --> 00:13:08,920 Speaker 1: The fundamentalists? Who? Who? Originalists? Sexualists exactly? Who? Who? Who 260 00:13:09,000 --> 00:13:12,240 Speaker 1: want to really stick to the words on the paper? Um, 261 00:13:12,320 --> 00:13:14,599 Speaker 1: in terms of what New York can do about this, 262 00:13:14,640 --> 00:13:16,600 Speaker 1: because I know that at least at the state level, 263 00:13:16,640 --> 00:13:18,880 Speaker 1: and I think I've heard Mayor Adams say on the 264 00:13:18,880 --> 00:13:23,240 Speaker 1: city level as well, UM, legislators were preparing for this 265 00:13:23,520 --> 00:13:28,520 Speaker 1: eventuality and trying to figure out ways that they could 266 00:13:28,800 --> 00:13:33,280 Speaker 1: still limit, um, the amount of uh, you know, guns 267 00:13:33,280 --> 00:13:36,760 Speaker 1: in circulation here while adhering to the decision. Right, this 268 00:13:36,800 --> 00:13:38,480 Speaker 1: is why you talk about I think what they call 269 00:13:38,600 --> 00:13:43,400 Speaker 1: sensitive areas, right exactly, So It all depends on what 270 00:13:43,559 --> 00:13:50,960 Speaker 1: this opinion says exactly, whether it's says completely no laws 271 00:13:51,000 --> 00:13:55,439 Speaker 1: allowed that restrict the use of carrying guns in public. 272 00:13:55,640 --> 00:13:57,720 Speaker 1: I mean, it's hard to believe that that that this 273 00:13:57,800 --> 00:14:00,480 Speaker 1: says that, but as I said, I have to really 274 00:14:00,520 --> 00:14:04,079 Speaker 1: carefully to see what it says. We know that New 275 00:14:04,160 --> 00:14:07,480 Speaker 1: York's law was very, very restrictive. As you mentioned, it 276 00:14:07,960 --> 00:14:11,440 Speaker 1: required very many restrictions. So we'll have to see how 277 00:14:11,440 --> 00:14:15,600 Speaker 1: did we can copy a celebrity or super rich basically 278 00:14:16,120 --> 00:14:19,240 Speaker 1: one of those. Alright, thank you so much. During Grasso, 279 00:14:19,360 --> 00:14:25,680 Speaker 1: legal reporter for Bloomberg News. All right, let's check in. 280 00:14:25,720 --> 00:14:28,640 Speaker 1: We've got Fed Chirman j. Pal He's still in Washington, 281 00:14:28,800 --> 00:14:31,400 Speaker 1: d C. Still in front of Congress today it's the 282 00:14:31,800 --> 00:14:35,960 Speaker 1: Senate Um and along chief was economist for Bloomberg Economics 283 00:14:35,960 --> 00:14:38,560 Speaker 1: and joins us. And uh, you know, I'm not sure 284 00:14:38,560 --> 00:14:40,400 Speaker 1: what to take away from this. It seems like it's 285 00:14:40,400 --> 00:14:43,160 Speaker 1: more political theater than than anything. But as you as 286 00:14:43,160 --> 00:14:45,760 Speaker 1: you think about the communication we've we've heard from Fed 287 00:14:45,800 --> 00:14:48,000 Speaker 1: Sherman Powell over the last couple of days and you know, 288 00:14:48,040 --> 00:14:50,280 Speaker 1: over the last week and so on, how do you 289 00:14:50,320 --> 00:14:56,280 Speaker 1: think he's approaching this inflation slash recession Balancing Act. Yeah, 290 00:14:56,320 --> 00:15:00,840 Speaker 1: I think he is trying to um not sound too 291 00:15:00,880 --> 00:15:04,960 Speaker 1: alarming about recessions, but he also wants to acknowledge that 292 00:15:05,520 --> 00:15:10,200 Speaker 1: it is uh that that the FED officials are realizing 293 00:15:10,320 --> 00:15:13,920 Speaker 1: that that there is a trade off in bringing inflation 294 00:15:13,960 --> 00:15:17,800 Speaker 1: down and unemployment. Right, well, well right, you know, as 295 00:15:17,800 --> 00:15:22,120 Speaker 1: a policy maker, they could control the narratives recessions. So 296 00:15:22,200 --> 00:15:25,520 Speaker 1: even if they internally think that a recession is a 297 00:15:25,600 --> 00:15:28,520 Speaker 1: short thing, they will not come out and say it's 298 00:15:28,520 --> 00:15:31,360 Speaker 1: a short thing. So so whatever he says about would 299 00:15:31,360 --> 00:15:33,360 Speaker 1: be the day right when the FED chair says we're 300 00:15:33,400 --> 00:15:36,760 Speaker 1: definitely headed into a recession next quarter, or a president 301 00:15:36,800 --> 00:15:39,880 Speaker 1: the president can't really say it either. Yeah, exactly. It 302 00:15:39,920 --> 00:15:41,880 Speaker 1: would be like being in a you know that the 303 00:15:41,960 --> 00:15:45,080 Speaker 1: analogy of it being in a movie theater and somebody 304 00:15:45,120 --> 00:15:49,120 Speaker 1: screaming fire, everybody's running out. He did say, though, it 305 00:15:49,160 --> 00:15:52,480 Speaker 1: would be very challenging to stick a soft landing. So 306 00:15:52,520 --> 00:15:56,200 Speaker 1: he's getting closer and closer to making that admission, especially 307 00:15:56,240 --> 00:16:00,760 Speaker 1: as um politicians question him about the efficacy of monetary 308 00:16:00,800 --> 00:16:04,040 Speaker 1: policy when it comes to dealing with supply side inflation. 309 00:16:04,320 --> 00:16:07,280 Speaker 1: It's just not that useful, and the only way you 310 00:16:07,320 --> 00:16:11,920 Speaker 1: can do it is to buy damping down demand. Right. Well, 311 00:16:11,960 --> 00:16:14,680 Speaker 1: you know he says that, right, but when you look 312 00:16:14,720 --> 00:16:17,920 Speaker 1: at what's happening now, it doesn't seem that way. After 313 00:16:18,080 --> 00:16:22,120 Speaker 1: the FED raises rates by sony fight it, you see 314 00:16:22,160 --> 00:16:24,920 Speaker 1: that everybody is darting to talk about recession spears and 315 00:16:25,000 --> 00:16:29,200 Speaker 1: suddenly oil price plunged by what like almost like sixteen 316 00:16:29,240 --> 00:16:33,800 Speaker 1: dollars for barrow already within a week. So through this, 317 00:16:34,320 --> 00:16:40,040 Speaker 1: through influencing people's expectations and sentiment, suddenly he has an 318 00:16:40,040 --> 00:16:44,000 Speaker 1: effect on supply. Yeah. Absolutely, we we We saw oil 319 00:16:44,040 --> 00:16:49,960 Speaker 1: trading for basically a hundred four dollars a barrel last Tuesday, 320 00:16:50,080 --> 00:16:53,640 Speaker 1: and this morning we came down to one oh two 321 00:16:53,760 --> 00:16:58,120 Speaker 1: thirty two. So yeah, we were actually down twenty bucks 322 00:16:58,440 --> 00:17:01,280 Speaker 1: in a week and a half, not even a week 323 00:17:01,320 --> 00:17:04,199 Speaker 1: and a half. Is that going to be enough? And uh, 324 00:17:04,280 --> 00:17:08,960 Speaker 1: I mean, um is the jaw owning and a few 325 00:17:09,000 --> 00:17:13,320 Speaker 1: seventy basis point how it is going to do it? Well? 326 00:17:13,560 --> 00:17:16,840 Speaker 1: I think that even before last week there there were 327 00:17:16,920 --> 00:17:21,560 Speaker 1: some disinflationary signs happening in the economy, but just not 328 00:17:21,720 --> 00:17:25,359 Speaker 1: food and energy prices. Um I I spoke to you 329 00:17:25,359 --> 00:17:30,320 Speaker 1: guys previously telling you that I think headline inflation would 330 00:17:30,600 --> 00:17:33,280 Speaker 1: get to nine percent before the end of the summer. 331 00:17:33,640 --> 00:17:36,040 Speaker 1: I still think that that is likely going to happen, 332 00:17:36,160 --> 00:17:41,199 Speaker 1: precisely because you know, food prices going to ride, gasoline prices, 333 00:17:41,320 --> 00:17:45,320 Speaker 1: um um. There's some seasonality with it and and it 334 00:17:45,400 --> 00:17:50,600 Speaker 1: has to fall sharply in order to see the situation 335 00:17:50,720 --> 00:17:55,040 Speaker 1: and improved um. So I still see like nine percent 336 00:17:55,160 --> 00:17:58,480 Speaker 1: being attainable in a couple of months and in terms 337 00:17:58,520 --> 00:18:00,960 Speaker 1: of inflation year over year in lation. But at the 338 00:18:01,000 --> 00:18:03,920 Speaker 1: same time, if you look at core measures, those are 339 00:18:04,000 --> 00:18:07,720 Speaker 1: coming down in a more sure footed way. And I 340 00:18:07,800 --> 00:18:11,800 Speaker 1: think that after I if the FED does one more 341 00:18:11,840 --> 00:18:15,840 Speaker 1: seventy five and a couple more fifty bits, I think 342 00:18:15,840 --> 00:18:19,639 Speaker 1: they could uh downshift bits by the end of the 343 00:18:19,720 --> 00:18:23,120 Speaker 1: year and and get to four percent next year and 344 00:18:23,160 --> 00:18:26,359 Speaker 1: we will be well. I think that will be an 345 00:18:26,359 --> 00:18:29,200 Speaker 1: optimistic cap for our bringing inflation back to two percent. 346 00:18:29,359 --> 00:18:31,520 Speaker 1: And one of our good friends of Bloomberg Economics, are 347 00:18:31,560 --> 00:18:35,560 Speaker 1: you calling for a recession at any time? Officially yes, 348 00:18:35,680 --> 00:18:41,040 Speaker 1: we have a officially adopted a recession um as our baseline, 349 00:18:41,119 --> 00:18:44,240 Speaker 1: and we think it will be happening in the second half. 350 00:18:46,240 --> 00:18:50,840 Speaker 1: We estimated that a recession before the end of next year. 351 00:18:51,240 --> 00:18:56,400 Speaker 1: It could happen with seventy two percent probability. Pretty distinct number. 352 00:18:56,400 --> 00:18:58,200 Speaker 1: There is it gonna be a shallow one, a deep one. 353 00:18:58,280 --> 00:19:03,040 Speaker 1: I mean Matt was quoting says five quarters in a 354 00:19:03,119 --> 00:19:07,840 Speaker 1: row of traction. Oh wow, Okay, we are seeing it 355 00:19:08,000 --> 00:19:12,199 Speaker 1: more of a short and shallow one because typically you 356 00:19:12,280 --> 00:19:19,280 Speaker 1: need uh financial distress and some banging sector um instability 357 00:19:19,520 --> 00:19:23,920 Speaker 1: and uh you know uh to to get the deep 358 00:19:23,960 --> 00:19:27,160 Speaker 1: recession the type that you see in two thousand and eight. 359 00:19:27,600 --> 00:19:32,320 Speaker 1: And right now I'm just seeing very healthy household balance sheet. Um, 360 00:19:32,359 --> 00:19:36,960 Speaker 1: you know, mortgage services as a share of income is 361 00:19:37,000 --> 00:19:42,320 Speaker 1: that historical lows. So even though the housing market the debt, 362 00:19:42,480 --> 00:19:45,560 Speaker 1: you know, with the urge and mortgage trade, people will 363 00:19:46,119 --> 00:19:49,480 Speaker 1: pay more, it's still historically kind of low as a 364 00:19:49,560 --> 00:19:52,440 Speaker 1: share of their income. And and so I just don't 365 00:19:52,480 --> 00:19:55,840 Speaker 1: see those kind of financial frictions that generate that could 366 00:19:55,880 --> 00:19:58,600 Speaker 1: generate is huge and deep recession. I want to talk 367 00:19:58,640 --> 00:20:02,280 Speaker 1: about school for a second, and because I note, um, 368 00:20:02,400 --> 00:20:07,760 Speaker 1: you got your bachelors in economics at Berkeley UM, which 369 00:20:07,800 --> 00:20:11,159 Speaker 1: I think of as you know, a school where you 370 00:20:11,200 --> 00:20:14,439 Speaker 1: come at things from a Marxist perspective. And then you 371 00:20:14,440 --> 00:20:17,640 Speaker 1: when got your PhD at the University of Chicago, which 372 00:20:17,680 --> 00:20:21,560 Speaker 1: is much more of an Austrian school. Right, how do you, um, 373 00:20:22,880 --> 00:20:27,160 Speaker 1: how do you compare and contrast those two experiences. Yeah, 374 00:20:27,240 --> 00:20:30,520 Speaker 1: I think you Chicago might like to accept Berkeley a 375 00:20:30,600 --> 00:20:35,119 Speaker 1: lump just try to convert them for fun. But uh, 376 00:20:35,400 --> 00:20:39,359 Speaker 1: but yeah, I think Berkeley definitely. It's one gets an 377 00:20:39,480 --> 00:20:44,719 Speaker 1: education Berkeley. You attend to think that government stimulus, um 378 00:20:44,760 --> 00:20:51,320 Speaker 1: you knows Ukansian economics works and bringing an economy out 379 00:20:51,320 --> 00:20:55,120 Speaker 1: of recession because you think that prices are sticky. Then 380 00:20:55,280 --> 00:20:59,800 Speaker 1: the uh you think about externality there. That's why there's 381 00:20:59,800 --> 00:21:03,840 Speaker 1: a paste for why government stimulus can I can you know, 382 00:21:03,960 --> 00:21:07,760 Speaker 1: get an economy out of you know, liquidity Trafford, you 383 00:21:07,760 --> 00:21:11,640 Speaker 1: know some story situations, whereas the Chicago school is more 384 00:21:11,720 --> 00:21:17,159 Speaker 1: of more places, more focused on um rationality, like you know, 385 00:21:17,480 --> 00:21:20,000 Speaker 1: they look at a situation like today, they would be 386 00:21:20,040 --> 00:21:24,439 Speaker 1: like poor sentiment in response to inflation, like the a 387 00:21:24,440 --> 00:21:30,560 Speaker 1: little irrational because nominal money illusions people. People's nominal wages 388 00:21:30,560 --> 00:21:35,960 Speaker 1: are rising in para all right, and a good good stuff. 389 00:21:35,960 --> 00:21:39,000 Speaker 1: They appreciate it as always are very well educated. Anna 390 00:21:39,080 --> 00:21:43,800 Speaker 1: Wong chief US economist for Bloomberg Economics, bringing us some 391 00:21:43,840 --> 00:21:46,399 Speaker 1: thoughts here as fat Cherman j pal Uh. You know 392 00:21:46,720 --> 00:21:50,480 Speaker 1: day two of his testimony in Front of Commerce explaining inflation, 393 00:21:50,560 --> 00:22:00,240 Speaker 1: explaining monetary policy and the Balancing Act. June is Ride 394 00:22:00,240 --> 00:22:03,280 Speaker 1: month and a month when we're focusing on equality issues 395 00:22:03,359 --> 00:22:06,879 Speaker 1: here at Bloomberg. Today we bring in Edward Moreno, labor 396 00:22:06,960 --> 00:22:09,639 Speaker 1: and Employment reporter for Bloomberg Law. He joins us to 397 00:22:09,680 --> 00:22:14,640 Speaker 1: discuss the pressure companies face and advocating for inclusion during 398 00:22:14,720 --> 00:22:16,880 Speaker 1: Pride Month. Edward, thanks for what you're joining is here. 399 00:22:17,400 --> 00:22:20,040 Speaker 1: What did you find? What are companies doing? Are they 400 00:22:20,080 --> 00:22:23,399 Speaker 1: paying lip service to this whole inclusion diversity equality thing? 401 00:22:23,480 --> 00:22:29,080 Speaker 1: Are they really making inroads? Yeah? Thank you for having me. Um. 402 00:22:29,119 --> 00:22:32,440 Speaker 1: You know what I learned was that UM, when companies 403 00:22:32,480 --> 00:22:36,240 Speaker 1: do take stand on lgbt Q issues, it's almost always 404 00:22:36,320 --> 00:22:39,560 Speaker 1: because they are facing or have at some point face 405 00:22:39,720 --> 00:22:44,320 Speaker 1: pressure from employees to do so. UM. And this is 406 00:22:44,359 --> 00:22:46,520 Speaker 1: generally in the past this has always been the case, 407 00:22:46,560 --> 00:22:48,159 Speaker 1: but in the past year this has come up more 408 00:22:48,200 --> 00:22:51,200 Speaker 1: often as a lot of state legislator lachers have been 409 00:22:51,200 --> 00:22:55,400 Speaker 1: proposing anti lgbt Q bills, such as Florida's don't take 410 00:22:55,400 --> 00:22:58,240 Speaker 1: a bill uh. You know, bathroom bills across the nation 411 00:22:58,480 --> 00:23:02,600 Speaker 1: targeting transfuse UM and things of that nature. UM. One 412 00:23:02,640 --> 00:23:04,800 Speaker 1: example of this was, you know, in Disney, we all 413 00:23:04,840 --> 00:23:07,840 Speaker 1: saw you know, employees stats to walk out UH and 414 00:23:07,880 --> 00:23:11,240 Speaker 1: basically pressured their CEO to take a stand against Florida's 415 00:23:11,240 --> 00:23:14,720 Speaker 1: don't take a bill UM. In Texas, dozens of companies 416 00:23:15,000 --> 00:23:19,560 Speaker 1: spoke out about a director from the governor UH directing 417 00:23:19,560 --> 00:23:24,760 Speaker 1: the state to investigate parents who are seeking gender affirming 418 00:23:24,760 --> 00:23:28,919 Speaker 1: care for transgender children. UM. And you know, one of 419 00:23:28,920 --> 00:23:32,119 Speaker 1: the pitfalls that employees are still asking for is, you know, 420 00:23:32,880 --> 00:23:35,200 Speaker 1: sometimes a company may take a stand on a particular 421 00:23:35,240 --> 00:23:40,120 Speaker 1: bill but still support financially politicians who propose those those 422 00:23:40,480 --> 00:23:44,160 Speaker 1: So that's an area where employees are certainly still pushing 423 00:23:44,200 --> 00:23:47,520 Speaker 1: for companies to do more. So wait have we? So 424 00:23:47,600 --> 00:23:50,640 Speaker 1: there are two issues right there is inclusive and diverse 425 00:23:50,720 --> 00:23:54,920 Speaker 1: hiring UM and then the issue of what a company 426 00:23:55,000 --> 00:23:58,120 Speaker 1: does in terms of support for political candidates or statements 427 00:23:58,160 --> 00:24:00,240 Speaker 1: that it makes if a company does that. Right, not 428 00:24:00,320 --> 00:24:02,800 Speaker 1: all companies have to get involved in politics. Some of 429 00:24:02,840 --> 00:24:05,320 Speaker 1: them probably just want to stick to business. UM. In 430 00:24:05,440 --> 00:24:08,960 Speaker 1: terms of the first issue, how are we doing Edward, 431 00:24:08,960 --> 00:24:13,400 Speaker 1: because that's probably um, you know, I don't really think 432 00:24:13,480 --> 00:24:17,320 Speaker 1: that Disney or Craft need to get involved too much 433 00:24:17,320 --> 00:24:20,359 Speaker 1: in any political issues, but I do want them to 434 00:24:20,480 --> 00:24:24,600 Speaker 1: be uh not to be discriminating against employee candidates and 435 00:24:24,600 --> 00:24:28,679 Speaker 1: and hiring, especially if I'm a shareholder, as broader range 436 00:24:28,680 --> 00:24:30,960 Speaker 1: of people as possible so that I can get the 437 00:24:30,960 --> 00:24:34,720 Speaker 1: best of the best. Right. So, UM, you know, actually 438 00:24:34,800 --> 00:24:37,680 Speaker 1: what I learned, UM, was that corporate America is generally, 439 00:24:38,359 --> 00:24:40,560 Speaker 1: at least from the folks I talked to, UM, generally 440 00:24:40,600 --> 00:24:45,439 Speaker 1: pretty ahead when it comes to internal inclusivity and you know, 441 00:24:45,520 --> 00:24:50,159 Speaker 1: having lgbt Q friendly policies for their employees. UM. But 442 00:24:50,280 --> 00:24:52,560 Speaker 1: you know what tends to be the motive for employees 443 00:24:52,600 --> 00:24:56,280 Speaker 1: to push companies to get into those political discussions is 444 00:24:56,359 --> 00:24:59,080 Speaker 1: you know a lot of times those bills affect employees. 445 00:24:59,560 --> 00:25:03,560 Speaker 1: They may b trends themselves or have um, transgender children. 446 00:25:04,040 --> 00:25:06,199 Speaker 1: So you know, it's not always There's only so much 447 00:25:06,200 --> 00:25:10,920 Speaker 1: a company can control that impacts their their employees. And 448 00:25:11,040 --> 00:25:14,760 Speaker 1: from their standpoint, you know, they probably they have a 449 00:25:14,760 --> 00:25:17,560 Speaker 1: business interest in making sure that employees are happy and 450 00:25:17,640 --> 00:25:21,040 Speaker 1: not being targeted by lawmakers because of their identity. And 451 00:25:21,440 --> 00:25:25,320 Speaker 1: Edward gives a sense of how much you know, not 452 00:25:25,480 --> 00:25:27,480 Speaker 1: just above the c suite, talk about the board. Is 453 00:25:27,480 --> 00:25:29,800 Speaker 1: there board support for a lot of these things? I mean, 454 00:25:29,880 --> 00:25:33,600 Speaker 1: I know there's pressure for E s G investors, Uh, 455 00:25:33,680 --> 00:25:35,520 Speaker 1: there's a board. You get a sense at the board 456 00:25:35,600 --> 00:25:38,000 Speaker 1: level in this country that there's is really support for 457 00:25:38,040 --> 00:25:41,679 Speaker 1: all of this. No, I think it may be getting 458 00:25:41,680 --> 00:25:45,040 Speaker 1: closer to that right now. UM. You know that was 459 00:25:45,080 --> 00:25:47,560 Speaker 1: definitely on the lower end of what companies have reported 460 00:25:47,680 --> 00:25:52,439 Speaker 1: as like, um, you know, impacting there how they approach 461 00:25:52,520 --> 00:25:55,440 Speaker 1: these issues. UM. One thing that has uh you know 462 00:25:55,600 --> 00:25:57,640 Speaker 1: kind of ramped that up is an effects new more 463 00:25:57,720 --> 00:26:00,840 Speaker 1: diversity rule, so more we now know that more boards 464 00:26:00,880 --> 00:26:05,920 Speaker 1: are disclosing um if they have lgbt Q members in them. Um, 465 00:26:06,000 --> 00:26:08,439 Speaker 1: that kind of puts the spotlight on them to you know, 466 00:26:08,640 --> 00:26:11,000 Speaker 1: just like with any diverse member of a board, uh, 467 00:26:11,320 --> 00:26:13,840 Speaker 1: to you know, take ownership of those issues. And you 468 00:26:13,880 --> 00:26:15,520 Speaker 1: know that might be something that we see in the future, 469 00:26:15,560 --> 00:26:18,080 Speaker 1: but right now it's definitely being driven more so by 470 00:26:18,200 --> 00:26:22,000 Speaker 1: employees and boards or even shareholders or yeah, yeah, exactly 471 00:26:22,040 --> 00:26:25,840 Speaker 1: by by profits. Right. You want to hire the smartest 472 00:26:26,040 --> 00:26:29,719 Speaker 1: and most capable employees that you can UM, and you 473 00:26:29,760 --> 00:26:33,360 Speaker 1: want them to feel as comfortable as they can at 474 00:26:33,400 --> 00:26:35,720 Speaker 1: work so that they can perform well. And of course 475 00:26:35,760 --> 00:26:39,359 Speaker 1: you want your leadership to be diverse as well, so 476 00:26:39,400 --> 00:26:42,199 Speaker 1: that you can make the right decisions to generate the 477 00:26:42,200 --> 00:26:44,440 Speaker 1: most revenue. I mean, I think of this all from 478 00:26:44,480 --> 00:26:47,440 Speaker 1: an economic perspective, but I guess not everyone does. Edward 479 00:26:48,320 --> 00:26:51,840 Speaker 1: m Yeah. Um. And actually, you know, even among the 480 00:26:51,840 --> 00:26:55,359 Speaker 1: employees that UM tend to be making those pushes. UM, 481 00:26:55,440 --> 00:26:58,280 Speaker 1: from what I heard from the folks I talked to UM, 482 00:26:58,320 --> 00:27:00,240 Speaker 1: A lot of times that comes from you know, the 483 00:27:00,280 --> 00:27:03,119 Speaker 1: executive leadership as well. You know, it's it's on the 484 00:27:03,119 --> 00:27:06,520 Speaker 1: lower ranks. It's a lot of times managers, higher ups. 485 00:27:06,600 --> 00:27:09,240 Speaker 1: So yeah, I think that's certainly correct. All right, good stuff. 486 00:27:09,359 --> 00:27:14,760 Speaker 1: Edward Moreno Labor, an employment reporter for Bloomberg Law. Thanks 487 00:27:14,760 --> 00:27:18,199 Speaker 1: for listening to the Bloomberg Markets podcast. You can subscribe 488 00:27:18,240 --> 00:27:21,920 Speaker 1: and listen to interviews with Apple Podcasts or whatever podcast 489 00:27:22,000 --> 00:27:25,560 Speaker 1: platform you prefer. I'm Matt Miller. I'm on Twitter at 490 00:27:25,600 --> 00:27:29,200 Speaker 1: Matt Miller three. Pet On Ball Sweeney I'm on Twitter 491 00:27:29,280 --> 00:27:32,120 Speaker 1: at pt Sweeney. Before the podcast, you can always catch 492 00:27:32,160 --> 00:27:33,720 Speaker 1: us worldwide at Bloomberg Radio.