WEBVTT - SpaceX Sends Civilians Into Space 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 0:00:11.560 --> 0:00:15.600 with essential market moving news. Find the Bloomberg Markets Podcast 0:00:15.600 --> 0:00:18.479 on Apple Podcasts or wherever you listen to podcasts, and 0:00:18.480 --> 0:00:22.239 at Bloomberg dot com slash podcast. You know, we had 0:00:22.280 --> 0:00:25.000 a rocket go into space last night, and I always 0:00:25.040 --> 0:00:26.520 love that kind of stuff. I'm gonna sucker for that. 0:00:26.560 --> 0:00:28.160 I grew up with the Apollo program and all that 0:00:28.200 --> 0:00:31.880 kind of stuff. My mom, who is she's older than you, though, Paul, 0:00:31.920 --> 0:00:34.320 but she gets terry when she watches it. There's this 0:00:34.360 --> 0:00:37.600 big nostall jobund it and I think, I know, I 0:00:37.600 --> 0:00:39.560 think there's value, but anyway, it's it's it's very cool. 0:00:39.560 --> 0:00:44.280 But this is completely commercial flight, so very cool. Ed Ludlow, 0:00:44.320 --> 0:00:47.800 he's our West Coast correspondent. He covers rockets and all 0:00:47.800 --> 0:00:49.360 that kind of stuff. I don't know what he does 0:00:49.400 --> 0:00:53.040 for a living, but apparently he's in Cape Canaveral, Florida. Ed. 0:00:53.080 --> 0:00:55.320 What can you tell us about this flight? I'm talking 0:00:55.640 --> 0:01:00.400 this is really a commercial flight. There's no astronauts or anything. Yeah, 0:01:00.440 --> 0:01:04.640 this is an all civilian crew. Um. The mission commander 0:01:04.720 --> 0:01:07.440 is a chap called Jarediazingman, who's the CEO of a 0:01:07.520 --> 0:01:10.280 thin tech company shift for payments, and he's a billionaire, 0:01:10.400 --> 0:01:12.920 so you know, we're kind of continuing this theme. He's 0:01:12.920 --> 0:01:15.759 funding the mission. But the other three crew members are 0:01:15.800 --> 0:01:21.120 genuine civilians, you know, they're not professional astronauts, and they're 0:01:21.120 --> 0:01:25.280 currently orbiting Earth at altitude of three hundred and sixty miles. 0:01:25.319 --> 0:01:27.959 You know, that's further than the International Space Station, is 0:01:28.040 --> 0:01:31.240 further than the Hubble telescope even and it's actually the 0:01:31.280 --> 0:01:35.320 furthest that SpaceX has ever sent. It's Dragon spacecraft. So 0:01:35.360 --> 0:01:39.600 this is kind of a real landmark mission for not 0:01:39.680 --> 0:01:42.399 just commercial space flight, but human spaceflight. You know, you 0:01:42.480 --> 0:01:45.880 don't have to be a decorated astronaut with a with 0:01:45.959 --> 0:01:48.680 an Air Force back history to make it. You can 0:01:48.760 --> 0:01:53.480 go to space now being an everyday joe. So let's 0:01:53.520 --> 0:01:58.640 talk about the everyday joe. And when will this officially 0:01:58.760 --> 0:02:02.960 really start to ramp up and is it monthly, quarterly, weekly? 0:02:03.120 --> 0:02:06.240 What can we expect that's the top question. You know, 0:02:06.360 --> 0:02:10.320 SpaceX are really supplied and strained Benji Reid, who's one 0:02:10.320 --> 0:02:12.120 of the directors of the company, spoke to me about 0:02:12.160 --> 0:02:14.880 this the day before the launch, but that you know, 0:02:14.919 --> 0:02:22.440 they have around four to six flights potentially in um. 0:02:22.480 --> 0:02:24.520 But the demand is there, they say, you know, there 0:02:24.600 --> 0:02:26.799 is a list of willing, paying customers. I think there's 0:02:26.840 --> 0:02:30.240 still massive question marks about the economics of this. You know, 0:02:30.240 --> 0:02:33.079 on this occasion, you have one billionaire. Okay, guys, he's 0:02:33.080 --> 0:02:36.839 a modest billionaire, just a couple of billions, but he's 0:02:36.880 --> 0:02:39.399 paying for it with his checkbook. And and that's really 0:02:39.440 --> 0:02:41.440 the question that SpaceX has not been able to answer. 0:02:41.520 --> 0:02:44.840 In fact, they haven't answered me. I've asked going forward, 0:02:45.320 --> 0:02:47.800 who pays for this? You know, does it rely on philanthropy? 0:02:48.160 --> 0:02:53.680 Does it rely on SpaceX kind of discounting trip? Is 0:02:53.680 --> 0:02:56.560 this done through lotteries? You know, things like that, And 0:02:56.840 --> 0:02:58.880 we really don't know for now. It does really seem 0:02:58.919 --> 0:03:04.480 like a rich man's sport. What are these four passengers, 0:03:04.480 --> 0:03:06.120 I guess, I guess I don't call them astronauts. What 0:03:06.160 --> 0:03:10.160 are these passengers doing up there for three days? Yeah? Well, 0:03:10.160 --> 0:03:12.720 what I always say is this that they Dragon Capsule 0:03:12.840 --> 0:03:16.080 is Philly autonomous. You know, it's in orbit, but you know, 0:03:16.240 --> 0:03:19.799 largely it powers itself and can be controlled from ground 0:03:19.800 --> 0:03:23.960 control by SpaceX. But if something goes wrong, they have 0:03:24.120 --> 0:03:27.000 had five to six months of intense training, two different 0:03:27.000 --> 0:03:30.480 scenarios to react and deal with that. But you know, 0:03:30.680 --> 0:03:32.519 largely they're up there to the experience. I don't know 0:03:32.520 --> 0:03:34.360 if you guys remember the image, but when they send 0:03:34.520 --> 0:03:37.720 Dragon up to the International Space Station, the nose cone 0:03:37.840 --> 0:03:41.040 opens up, and that is this the zone that docks 0:03:41.080 --> 0:03:43.080 with I S. S. But they don't need to dot 0:03:43.080 --> 0:03:45.680 with BASS. So when the nose cone opened this time around, 0:03:45.680 --> 0:03:50.040 it revealed this beautifully curved, thick glass window, so they'll 0:03:50.080 --> 0:03:52.000 be taking time to look out of it, look back 0:03:52.040 --> 0:03:56.560 down at Earth, look out into space. One of the passengers, 0:03:56.640 --> 0:04:00.320 or one of the civilian astronauts, is somebody called Haley 0:04:00.360 --> 0:04:03.760 after No. She is a cancer survivor who went on 0:04:03.880 --> 0:04:08.160 to be a physicians assistant at St. Jude, who are 0:04:08.200 --> 0:04:12.000 actually this mission is raising money for St. Jude. The 0:04:12.040 --> 0:04:14.920 aim is two million, but she is technically the medical 0:04:14.920 --> 0:04:18.240 officer on this trip, and she'll be doing biological physiological 0:04:18.600 --> 0:04:22.480 experiments on her crewmates while they're in orbit for three days. 0:04:22.720 --> 0:04:25.440 You know, they'll be moving around the cabin. And and 0:04:25.480 --> 0:04:28.760 as you know, I've been telling people, Chris Ambroski, who 0:04:28.800 --> 0:04:31.960 is the mission specialist, he won his seat because his 0:04:32.040 --> 0:04:35.360 buddy won the seat in a lottery or a wrap 0:04:35.520 --> 0:04:37.680 or lottery. He didn't want to go, so he gave 0:04:37.760 --> 0:04:40.200 his his seat to Chris. And Chris has taken a 0:04:40.279 --> 0:04:43.080 ukulele with him, so he'll be discovering what it's like 0:04:43.160 --> 0:04:48.320 to play a string instrument in space and rootcap for 0:04:48.440 --> 0:04:52.640 us here there. And you know the inner workings of 0:04:52.800 --> 0:04:55.720 the top three you mentioned Virgin Clactic and SpaceX and 0:04:55.760 --> 0:05:02.280 Blue Origin and the inherent maybe friendly competition though if 0:05:02.320 --> 0:05:06.840 one succeeds, then we all can succeed. Where are we 0:05:06.960 --> 0:05:09.480 in wanting to be the first, wanting to be the best, 0:05:09.520 --> 0:05:13.200 but also knowing that multiple players in this market in 0:05:13.279 --> 0:05:16.560 the end actually could be better. Yeah, I think you 0:05:16.560 --> 0:05:19.160 know the main voice in all of this is NASA. Right. 0:05:19.520 --> 0:05:22.440 SpaceX is success today was born out of the commercial 0:05:22.480 --> 0:05:25.599 crew program, which NASHA put in place a decade ago 0:05:26.000 --> 0:05:29.880 because simply the public sector funded space programs weren't working. 0:05:30.320 --> 0:05:33.159 You know, the Shuttle program ultimately was shut down. And 0:05:33.279 --> 0:05:36.400 NASA's view on this is that competition is good, and 0:05:36.440 --> 0:05:39.320 the private sector is good. They had no involvement in 0:05:39.360 --> 0:05:41.719 this mission, They did not fund it, they did not 0:05:41.800 --> 0:05:44.240 take part in the training or the risk assessment. But 0:05:44.279 --> 0:05:46.599 they think that it's a really substantive step forward. So 0:05:46.680 --> 0:05:49.640 that's one part of it. But to be completely frank, 0:05:49.760 --> 0:05:52.159 SpaceX is so ahead of the game compared with the 0:05:52.200 --> 0:05:56.560 rest of the players. Um, you know, basically SpaceX sends 0:05:56.600 --> 0:06:00.120 two thirds of all payloads sent from all of it 0:06:00.279 --> 0:06:03.520 that includes everyone, private sector, government payloads. You know, they 0:06:03.560 --> 0:06:06.600 dominate that industry, not because they have some kind of monopoly, 0:06:06.760 --> 0:06:09.480 but because they simply are just the best at it. 0:06:09.560 --> 0:06:12.320 You know, they have they can fly with such regularity 0:06:12.360 --> 0:06:15.160 because their technology is the best. And the final thing 0:06:15.160 --> 0:06:19.320 I would say is that it's unequivocal across the investment community, 0:06:19.680 --> 0:06:24.640 NASA aerospace engineers. This mission is such a much bigger 0:06:24.680 --> 0:06:27.400 deal than what we saw from Bezos and Branson. It 0:06:27.520 --> 0:06:30.279 is an order of magnitude more difficult and risky. What 0:06:30.400 --> 0:06:34.239 they have done real quickly, how did they get back? 0:06:34.360 --> 0:06:38.080 Did they splash down in the ocean? Allah the Apollo astronauts, 0:06:38.120 --> 0:06:40.919 how did they get back? Yeah, exactly. So there are 0:06:41.000 --> 0:06:44.520 several target zones off the coast of Florida. It's completely 0:06:44.520 --> 0:06:48.080 weather dependent the timing and exact location, but the dragon 0:06:48.160 --> 0:06:51.359 capsule can orient itself so that the Earth's gravitational pool 0:06:51.560 --> 0:06:54.560 brings it back down through as atmosphere. The flat bottom 0:06:54.560 --> 0:06:56.679 slows it down with air resistance, and then it uses 0:06:56.720 --> 0:06:59.040 a series of parachutes and by the time it does 0:06:59.080 --> 0:07:01.600 splash down is just a few miles an hour. Nice 0:07:01.640 --> 0:07:05.760 and gentle Edla Low, thank you so much for joining us. 0:07:06.000 --> 0:07:09.560 Nice and gentle Ed La West Coast corresponding for Bloomberg News. 0:07:09.560 --> 0:07:12.600 He is down in Cape Canaveral bringing us live reporting 0:07:12.720 --> 0:07:16.400 on this really really cool space mission SpaceX. And I 0:07:16.480 --> 0:07:19.000 like how Ed framed aft force order of magnitude more 0:07:19.000 --> 0:07:21.119 difficult than and then what we saw from just recently 0:07:21.160 --> 0:07:25.120 from Richard Branson and uh and uh Jeff Bezos. Yeah, no, 0:07:25.320 --> 0:07:27.680 Ed is great. He he knows the stuff inside it 0:07:27.680 --> 0:07:35.280 out and always brings us some perspective along with some humor. Well, 0:07:35.360 --> 0:07:36.920 we have read on the screen, but it's been an 0:07:36.920 --> 0:07:39.080 odd week, you know, one day up, the next day down, 0:07:39.080 --> 0:07:41.920 the next day up. So no real direction here at 0:07:42.000 --> 0:07:44.800 least uh for this week. As people come back and 0:07:45.000 --> 0:07:47.320 kind of get focused on this market in September. Let's 0:07:47.320 --> 0:07:50.360 bring in David coudla Uh. He is founder, CEO, and 0:07:50.440 --> 0:07:52.840 chief investment strategists at main Staate Capital. We have about 0:07:52.880 --> 0:07:56.880 three point eight billion dollars under management. David, thanks so 0:07:56.960 --> 0:07:59.480 much for joining us here. You know, market feels a 0:07:59.480 --> 0:08:02.600 little directction lists here. Where do you think the next 0:08:03.360 --> 0:08:06.280 five to move is a lot of folks feel like 0:08:06.320 --> 0:08:11.880 it's to the downside. Good morning, Paul. Yeah, it definitely 0:08:11.920 --> 0:08:17.440 seems like the market is uh just uh mandering, meandering sideways. 0:08:18.240 --> 0:08:20.800 We've had seven of the last nine days have been 0:08:20.840 --> 0:08:24.520 negative days for the index, but Pete de trough intra 0:08:24.640 --> 0:08:27.800 day that's only a little over two percent declined. So 0:08:28.320 --> 0:08:31.000 it's not the extreme volatility that some mighty expect in 0:08:31.040 --> 0:08:33.839 September October or we've been waiting for for so long. 0:08:34.520 --> 0:08:37.280 H this has been a very non volatile year for 0:08:37.320 --> 0:08:40.720 the market, indexes, for stocks in general. I think that 0:08:41.360 --> 0:08:43.360 though that as we worked through this, I think the 0:08:43.400 --> 0:08:47.199 direction for the market through year end is higher um 0:08:47.240 --> 0:08:50.200 and higher by as much as another four or five six. 0:08:52.000 --> 0:08:59.040 And is that based on fundamentals or fomo? Well, certainly 0:08:59.120 --> 0:09:03.120 fomo has been uh an important factor and in this 0:09:03.200 --> 0:09:06.360 boolmarket all the way through certainly, um, you know by 0:09:06.360 --> 0:09:08.959 this time last year as we came off the bear 0:09:09.080 --> 0:09:12.720 market lows in March. But you know, when we when 0:09:12.760 --> 0:09:15.480 we look at where we're at in the cycle, uh, 0:09:15.480 --> 0:09:19.320 and there is questions about the economy, there's questions about what. 0:09:19.520 --> 0:09:22.439 You know, we've had downward revisions by the Fed, Atlanta 0:09:22.480 --> 0:09:25.360 Fed and their GDP forecast, by a lot of the 0:09:25.400 --> 0:09:30.000 big banks in their GDP forecasts. But we've still got 0:09:30.000 --> 0:09:33.760 an economy that's growing. We've got the risk of inflation. 0:09:34.000 --> 0:09:36.599 But our latest number, uh, the inflation was down a 0:09:36.640 --> 0:09:41.160 little bit. Import prices came in down three tenths of 0:09:41.200 --> 0:09:45.360 a percent. That's the lowest in a year, or the 0:09:45.440 --> 0:09:50.559 first decline in a year. So we're importing less inflation. 0:09:50.679 --> 0:09:53.320 So uh, you know that when we when we net 0:09:53.360 --> 0:09:56.520 that all out, though, I believe that we we still 0:09:56.559 --> 0:09:59.400 have hired for the market to go based on fundamentals, 0:09:59.400 --> 0:10:03.400 based on also our belief, not the consensus belief, but 0:10:03.520 --> 0:10:08.560 our belief that FED tightening or FED tapering is not 0:10:08.720 --> 0:10:12.080 coming as soon as as many might expect. Because it 0:10:12.080 --> 0:10:15.280 seems like, you know, again we did get some hawkish 0:10:15.960 --> 0:10:19.280 views on tapering from the FED recently. Yet the as 0:10:19.440 --> 0:10:21.520 you know, as you just mentioned, the markets only off 0:10:21.559 --> 0:10:23.839 a couple of percent from it's high. So if you're 0:10:23.840 --> 0:10:26.520 a bull, you could take that as a pretty decent sign. 0:10:26.600 --> 0:10:30.679 Is that how you think about it? Yeah, And the 0:10:30.720 --> 0:10:34.680 other thing that we're maybe at a non consensus view 0:10:34.720 --> 0:10:39.200 on also is the UH where we are with COVID 0:10:39.800 --> 0:10:42.160 UH and where we're going. You know, we I've probably 0:10:42.160 --> 0:10:45.600 heard five times over the last five weeks that that 0:10:45.920 --> 0:10:48.440 the delta variant has peaked, but yet we've got the 0:10:48.480 --> 0:10:52.679 news UH here this week that the state of Iowa 0:10:52.840 --> 0:10:57.400 is rationing hospital beds. Who would have thought at this 0:10:57.480 --> 0:11:01.000 point in the pandemic any where in the US we'd 0:11:01.000 --> 0:11:04.920 be rationing hospital beds deciding who's going to get treatment 0:11:05.000 --> 0:11:07.480 or not. So, you know, the way we look at 0:11:07.480 --> 0:11:10.720 it is we're only another variant away from that having 0:11:10.920 --> 0:11:15.679 even further economic impacts, impacts on the supply chain, and 0:11:15.840 --> 0:11:18.000 you know, those are things that the FED will consider 0:11:18.480 --> 0:11:20.360 and when they do or don't taper, and there's just 0:11:20.960 --> 0:11:23.640 so much so with the amount of liquidity that's out 0:11:23.640 --> 0:11:27.640 there billion a month, there's so much liquidity. I think 0:11:27.679 --> 0:11:33.480 that's why we haven't seen any significant downstrokes, downside volatility 0:11:33.480 --> 0:11:36.400 of the market, and the trend continues to be higher. 0:11:37.280 --> 0:11:40.319 I am curious what queues you're taking from the bond 0:11:40.360 --> 0:11:46.600 market with spread still so tight relative to historical standards? Again, 0:11:46.640 --> 0:11:53.160 does that sound like fundamentals or is this excess yield taking? Well, 0:11:53.800 --> 0:11:56.000 you know, the question is what kind of signals can 0:11:56.040 --> 0:11:59.560 we take from the bond market at all these days? Uh? 0:11:59.640 --> 0:12:03.600 You know, how can we have a tenure yield tenure 0:12:03.679 --> 0:12:08.520 treasury yield trading around one point when inflation is at 0:12:08.520 --> 0:12:11.880 five point three or five point four percent? Use the 0:12:11.920 --> 0:12:15.880 tailor role, use any role. Um We've talked about a lot. 0:12:16.280 --> 0:12:19.440 Uh you know that doesn't that doesn't make sense. Uh. 0:12:19.520 --> 0:12:23.320 So you know, bond yields are so much influenced by 0:12:23.960 --> 0:12:28.040 uh the artificial factor, the intervention of the ft. We 0:12:28.080 --> 0:12:30.280 think it's more telling of what the fet is doing 0:12:31.280 --> 0:12:33.840 than what it can give us in terms of good 0:12:33.880 --> 0:12:38.760 signals about the economy. Valuation, where are we are you concerned? 0:12:40.920 --> 0:12:44.600 Valuations are stretched, but they're stretched in a low interest 0:12:44.679 --> 0:12:47.520 rate environment. As I said, the tenure trading down around 0:12:48.280 --> 0:12:52.319 one point three percent, So we think we can still 0:12:52.360 --> 0:12:55.679 have multiple expansion in the US. But you know, one 0:12:55.720 --> 0:12:58.400 thing that we're looking at is is uh is. We're 0:12:58.400 --> 0:13:01.400 looking abroad because what we've seen now is if we 0:13:01.440 --> 0:13:05.000 look at the M s c I All Country Index, 0:13:06.080 --> 0:13:13.000 x US basically has developed countries. We're um that index 0:13:13.080 --> 0:13:16.719 is trading at a thirty point five pc discount to 0:13:16.760 --> 0:13:19.160 the S and P five hundred. That's the highest ever. 0:13:19.640 --> 0:13:24.240 So we're also looking abroad to foreign opportunities in Europe, 0:13:24.280 --> 0:13:29.680 in Japan to both diversify our portfolio for overall risk 0:13:29.760 --> 0:13:34.600 mitigation and as a tactical opportunity for our performance going forward. Interesting. 0:13:34.600 --> 0:13:36.800 All right, David, thank you so much for joining us again. 0:13:36.840 --> 0:13:40.240 We always appreciate getting your thoughts. David Coudla, founder, CEO, 0:13:40.400 --> 0:13:44.960 and chief investment strategist of Mainstay Compital Management. Interesting takeaway, 0:13:45.000 --> 0:13:47.760 they're kind of looking at the outside the US for 0:13:47.840 --> 0:13:53.760 opportunities and seeing evaluation play there. Let's talk crypto here. 0:13:53.840 --> 0:13:56.160 I guess one of the issues for a lot of 0:13:56.160 --> 0:13:58.120 folks that I talked to, you know, just kind of 0:13:58.200 --> 0:14:02.240 cocktail conversation, is I hear all about this crypto stuff bitcoin, 0:14:02.880 --> 0:14:04.520 How do I get exposure to it? How do I 0:14:04.720 --> 0:14:07.400 invest in it? Let's check in with Ian Billina founder 0:14:07.440 --> 0:14:11.200 and CEO of Token Metrics uh In. You're also the 0:14:11.240 --> 0:14:13.720 author of the book Crypto Investing Guide, How to invest 0:14:13.760 --> 0:14:17.720 in Bitcoin, Defy n f T S and more so Ian. 0:14:18.240 --> 0:14:19.960 When people come up to you at a cocktail party 0:14:19.960 --> 0:14:22.960 and say, how do I invest in crypto? I feel 0:14:23.000 --> 0:14:26.840 like I should have some percentage of my portfolio in crypto. 0:14:27.160 --> 0:14:31.200 What's your go to response? I'll throw all thanks for 0:14:31.280 --> 0:14:37.240 having me good to responses. Because it is a new 0:14:37.280 --> 0:14:41.120 asset class, it is riskier than other asset classes. However 0:14:41.160 --> 0:14:44.080 that there is an opportunity for more upsite. What I 0:14:44.120 --> 0:14:47.520 typically till that is, start by investor with what you're 0:14:47.560 --> 0:14:50.480 willing to lose, whether that's one percent of your net worth, 0:14:50.920 --> 0:14:52.840 whether that's five percent of your net worth, but whatever 0:14:52.880 --> 0:14:55.320 you invested to crypto, make sure you're willing to lose 0:14:55.400 --> 0:14:59.080 this because um outside but there's also lots of downside 0:14:59.080 --> 0:15:04.080 with crypto investing, and just then that's why we haven't 0:15:04.080 --> 0:15:08.640 book published recently. As you mentioned, see if we can, 0:15:08.840 --> 0:15:10.040 and I think we're we've got a kind of a 0:15:10.120 --> 0:15:11.840 choppy line there, so we're gonna see if we can 0:15:11.880 --> 0:15:14.280 improve that. Uh And if we can, we'll come back 0:15:14.280 --> 0:15:17.920 to you I'm just looking at bitcoin here. Today XPT 0:15:18.840 --> 0:15:22.200 is the symbol forty seven thousand, three and sixty eight 0:15:22.320 --> 0:15:25.680 dollars or three seventy dollars per token off about one 0:15:25.760 --> 0:15:29.080 point one percent today dig up to fifty two tho uh. 0:15:29.120 --> 0:15:31.200 And it's got a support tailor, I mean for the 0:15:31.240 --> 0:15:34.720 technical folks out there for bitcoin of about thirty thousand 0:15:34.760 --> 0:15:37.080 dollars per token that's been tested several times, but it 0:15:37.120 --> 0:15:40.240 bounced really nicely off of that thirty thousand the last 0:15:40.240 --> 0:15:43.080 time I got up to dollars per token. Yeah, and 0:15:43.120 --> 0:15:45.800 there's been a lot of interesting conversations. We spoke with 0:15:45.920 --> 0:15:51.360 Eric Balcunas are pretty expert yesterday Bloomberg Intelligence, and he 0:15:51.800 --> 0:15:55.240 twice now was pretty strongly put his money on a 0:15:55.280 --> 0:15:58.840 bitcoin or a crypto et F by around mid October 0:15:59.080 --> 0:16:02.720 or so, that sec Gary Gensler, and I'm not going 0:16:02.720 --> 0:16:05.680 to get into all the craziness that Eric valtun Is 0:16:05.760 --> 0:16:08.680 can do so well, but the Securities Act of thirty 0:16:08.720 --> 0:16:12.040 four versus forty, and Eric was saying, Gary Gensler prefers one, 0:16:12.040 --> 0:16:14.000 and so this way they can get through the e 0:16:14.160 --> 0:16:16.760 t F this way, and you know, that could be 0:16:16.800 --> 0:16:21.120 a huge catalyst for this market as well. Eric was saying, Yeah, 0:16:21.160 --> 0:16:23.640 that's gonna be really interesting. We have in Billina back, 0:16:23.640 --> 0:16:26.440 founder and CEO of Token Metrics, So and again you 0:16:26.520 --> 0:16:27.920 kind of start off by saying, how do you invest 0:16:27.920 --> 0:16:31.040 in this and you do it carefully. How important do 0:16:31.040 --> 0:16:34.800 you think getting an e t F, a bitcoin et 0:16:34.920 --> 0:16:36.640 F or crypto e t F will be to the 0:16:36.640 --> 0:16:39.760 growth of this market. I think it will be huge 0:16:40.040 --> 0:16:42.840 because it will be an avenue for people to slowly 0:16:42.840 --> 0:16:45.400 passively invest in to crypto assets. And I think it 0:16:45.400 --> 0:16:49.560 would be really the welcoming of institutional investors and people 0:16:49.600 --> 0:16:52.280 with the full one case the pension funds being able 0:16:52.280 --> 0:16:55.640 to investen to crypto without having to become experts in crypto. 0:16:56.440 --> 0:16:59.920 Can you talk to us about institutional investors when they 0:17:00.080 --> 0:17:03.760 come in. Does it help legitimize the market? You've had 0:17:04.160 --> 0:17:06.840 Steve Cohen, I think, say that he's getting in because 0:17:06.880 --> 0:17:10.200 his son told him all about it. Ray Dalio said 0:17:10.200 --> 0:17:12.800 that cash is trash and he's sort of dipping around 0:17:12.920 --> 0:17:16.960 lightly in crypto. Do all of those headlines help legitimize 0:17:17.000 --> 0:17:20.840 the market. Yes, absolutely, because see if I look at 0:17:20.880 --> 0:17:23.280 institutional investors for guidance in terms of where it go 0:17:23.760 --> 0:17:26.520 for new asset classes. So when they see smart money 0:17:26.920 --> 0:17:31.080 entering the space because a validation, because people comfort that 0:17:31.119 --> 0:17:33.040 crypto assets are here to start a long term of 0:17:33.080 --> 0:17:37.160 smart money is entering the space. Alright, So again Ian, 0:17:37.440 --> 0:17:39.240 you know, we have actually on the Bloomberg terminal c 0:17:39.520 --> 0:17:42.480 r yp is a functions kind of the monitor for 0:17:43.040 --> 0:17:46.440 all things crypto and what trades out there right now, 0:17:46.480 --> 0:17:48.879 it seems to be you know, one of the it's bitcoin, 0:17:48.960 --> 0:17:52.119 it's ethereum. Is that kind of where people should be 0:17:52.119 --> 0:17:54.800 focused on at this point as they wait for potentially 0:17:54.800 --> 0:17:59.480 in et f Yes, but what's really been taking off 0:17:59.560 --> 0:18:03.000 recently you have been layer one protocols essentially new block 0:18:03.080 --> 0:18:07.080 change similar to etherium and bitcoin, but with different use cases. 0:18:07.160 --> 0:18:12.400 So as of recently, projects like Avalanche, Salona, algorand all 0:18:12.440 --> 0:18:14.719 these different projects, I've been getting lots of interest from 0:18:14.760 --> 0:18:18.280 smart money from instance, from our institutions, and these could 0:18:18.320 --> 0:18:21.760 be a possible ahead versus bitcoin and ethereum, although there's 0:18:21.800 --> 0:18:26.400 still pretty nascent as as technologies. What did El Salvador 0:18:26.560 --> 0:18:29.280 a few weeks ago the first country to adopt this 0:18:29.320 --> 0:18:32.040 as sort of a legitimate currency, if you will, What 0:18:32.160 --> 0:18:36.679 did that teach us? If anything? It taught us that 0:18:36.720 --> 0:18:39.960 it's possible, it's possible for a country, a government, a 0:18:40.080 --> 0:18:44.119 central bank too to bring in bitcoin, a new, a 0:18:44.160 --> 0:18:47.600 new particular currency into its economy. And it's really now 0:18:47.640 --> 0:18:50.199 building out the model for other countries to follow. So, 0:18:50.280 --> 0:18:52.439 for example, parag lines in other countries are looking to 0:18:52.480 --> 0:18:55.800 possibly replicate what what what has been done by El Salvador. 0:18:56.080 --> 0:18:58.560 But even with the volatility, mean, did they show us 0:18:58.560 --> 0:19:01.240 it really like a currency is the right way instead 0:19:01.280 --> 0:19:04.800 of a store of value, even with all the volatility. 0:19:05.480 --> 0:19:08.480 I think why now is still an experiment. Uh, A 0:19:08.560 --> 0:19:10.040 lot of means to be seen in terms of what 0:19:10.080 --> 0:19:13.080 happens next. UM. For example, I was speaking to to 0:19:13.119 --> 0:19:16.320 the minister of finance of a country in Africa and 0:19:16.320 --> 0:19:18.919 they're saying they're funny challenging to bring in the currency 0:19:18.960 --> 0:19:22.919 to Represa Entrency. However, there would be open to bringing 0:19:22.920 --> 0:19:26.760 in digital assets and seeing how they um are taken 0:19:26.760 --> 0:19:29.439 on by the country while still having control. So I 0:19:29.440 --> 0:19:31.280 think right now other countries are seeing what's going on 0:19:31.320 --> 0:19:33.199 over there and trying to learn and see if that 0:19:33.240 --> 0:19:36.119 can be replicated in their own economies. All right, and 0:19:36.200 --> 0:19:38.720 thank you so much for joining us there. Ian Billina, 0:19:38.800 --> 0:19:41.200 founder and CEO of Token Metrics, kind of getting a 0:19:41.240 --> 0:19:43.320 update on kind of this crypto market. Again, a lot 0:19:43.320 --> 0:19:46.719 of folks are thinking about how they should get some exposure, 0:19:46.840 --> 0:19:49.399 and Ian suggesting, you know, very small percentage, one or 0:19:49.440 --> 0:19:52.560 two percent. Perhaps your portfolio be prepared to lose that 0:19:52.640 --> 0:19:55.640 all given the volatility that we're seeing in these early 0:19:55.680 --> 0:19:58.199 stages of crypto. But again, a lot of interest out 0:19:58.200 --> 0:20:00.399 there and a lot of folks are really waiting for 0:20:00.560 --> 0:20:03.119 that e t F to come, So we will certainly 0:20:03.119 --> 0:20:05.520 stay on top of this story. More to come. This 0:20:05.640 --> 0:20:12.320 is Bloomberg. Some pretty good retail sales numbers we got 0:20:12.359 --> 0:20:15.280 this morning. Let's break them down with Angie Slonki uh, 0:20:15.400 --> 0:20:18.320 National director US Retail for Collier's joining us on the 0:20:18.359 --> 0:20:20.960 phone from San Francisco. Angie, thanks so much for joining, sir, 0:20:21.040 --> 0:20:23.399 love to just get your thoughts here. Uh, you know 0:20:23.480 --> 0:20:25.919 your knee deep in all things retail. What did you 0:20:25.960 --> 0:20:29.679 take away from this morning's numbers? Oh it was I 0:20:29.720 --> 0:20:31.879 was more than thrilled. I have to say. The retail 0:20:31.920 --> 0:20:35.359 positivity and the momentum that we've seen from the beginning 0:20:35.359 --> 0:20:37.680 of the year has been great, but we are starting 0:20:37.720 --> 0:20:41.160 to normalize. One thing to know every person is spending 0:20:41.200 --> 0:20:45.200 an additional two sixty dollars as of last month, so 0:20:45.560 --> 0:20:48.400 quite a bit of spend. So I'm excited to see 0:20:48.440 --> 0:20:53.119 these trends. Is the spend sustainable? We all know that 0:20:53.160 --> 0:20:58.120 the data show us the consumer most consumers got more 0:20:58.320 --> 0:21:01.880 wealthy in the pandemic. You think about the savings, So 0:21:02.040 --> 0:21:06.440 is that sustainable going forward? I don't think it will. 0:21:06.520 --> 0:21:09.040 We'll start to see some sort of normalization towards the 0:21:09.119 --> 0:21:12.399 end of the year, although positive. Um, as we we 0:21:12.600 --> 0:21:16.959 hit the end of exit, we'll start to see a normalization. 0:21:17.000 --> 0:21:19.800 I think what will happen is things will start to 0:21:19.840 --> 0:21:23.720 reset and it will start to flatten out. I think 0:21:23.760 --> 0:21:27.600 our biggest concern right now in terms of retail is 0:21:27.760 --> 0:21:31.440 the slow down in terms of global manufacturing, and that 0:21:31.480 --> 0:21:35.920 will hurt us. So we're already seeing challenges in retail 0:21:36.080 --> 0:21:39.639 where retailers are starting to face a lack of merchandise 0:21:39.720 --> 0:21:44.480 in stores. So of course that will automatically also take 0:21:44.560 --> 0:21:48.280 place online as well. So and you here in New 0:21:48.359 --> 0:21:53.920 York City, Bloomberg HQ here on Elecington Avenue, uh all 0:21:53.960 --> 0:21:57.280 the retail shops between fifty eight and fifty ninth Street 0:21:57.280 --> 0:22:00.320 on Lexington with the exception of one small little Swiss 0:22:00.400 --> 0:22:03.959 chocolate store, they're all empty. And we were talking some 0:22:04.000 --> 0:22:06.639 big box retailers. Give us a sense of how you 0:22:06.680 --> 0:22:10.640 think physical retailing will come back here as we get 0:22:10.680 --> 0:22:14.320 to the other side of this pandemic. Definitely. You know, 0:22:14.400 --> 0:22:16.959 we've actually it was interesting to um, we've done some 0:22:17.000 --> 0:22:20.120 research in house. What we've actually seen from a big 0:22:20.160 --> 0:22:24.680 box perspective is actual growth, but growth in secondary markets. 0:22:25.200 --> 0:22:28.359 UM in the suburbs. As we've all been hearing in 0:22:28.400 --> 0:22:33.199 the reports lately, they work from home mindset continues to 0:22:33.560 --> 0:22:36.840 you know, pretty pretty much be stable, and therefore a 0:22:36.840 --> 0:22:40.600 lot of these big box operators are looking at, you know, 0:22:41.119 --> 0:22:45.000 identifying locations pretty much outside of some of the denser 0:22:45.119 --> 0:22:49.280 city So the recovery will come back to Lexington, to 0:22:49.760 --> 0:22:52.480 you know, Union Square, San Francisco. It's just going to 0:22:52.520 --> 0:22:56.639 be a slower recovery. Yeah. Interesting. We certainly are hoping, 0:22:56.680 --> 0:23:01.240 at least for our neighborhood here that that is the case. 0:23:01.640 --> 0:23:04.240