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 00:00:11,560 --> 00:00:15,600 Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast 5 00:00:15,640 --> 00:00:18,479 Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and 6 00:00:18,480 --> 00:00:23,400 Speaker 1: at Bloomberg dot com slash podcast. Today, President Biden is 7 00:00:23,520 --> 00:00:27,000 Speaker 1: meeting in the White House with congressional leaders from both 8 00:00:27,000 --> 00:00:29,760 Speaker 1: parties to talk about legislation. What can they get done. 9 00:00:29,800 --> 00:00:33,040 Speaker 1: One of the key topics, of course, is infrastructure. So 10 00:00:33,520 --> 00:00:35,560 Speaker 1: is a perfect time to chat with our next guest, 11 00:00:35,760 --> 00:00:39,280 Speaker 1: Ed Mortimer, he's a Vice president for Transportation and Infrastructure 12 00:00:39,320 --> 00:00:42,239 Speaker 1: at the US Chamber of Commerce. And Greg Reagan, he's 13 00:00:42,240 --> 00:00:44,640 Speaker 1: a president of Transportation and Trades Department at the A 14 00:00:44,800 --> 00:00:47,479 Speaker 1: f l C I o U. They both join us 15 00:00:47,479 --> 00:00:50,800 Speaker 1: here today to talk about infrastructure. And let's start with 16 00:00:50,920 --> 00:00:53,880 Speaker 1: you here. You know, from the Chamber of Commerce's perspective, 17 00:00:54,360 --> 00:00:58,279 Speaker 1: what do you think or how much should UH we 18 00:00:58,360 --> 00:01:02,760 Speaker 1: allocate this year in this upcoming plan to infrastructure? What's 19 00:01:02,800 --> 00:01:08,399 Speaker 1: the number in your perspective? Also, thanks for the opportunity 20 00:01:08,480 --> 00:01:12,720 Speaker 1: to speak from the business community's perspective. This is a 21 00:01:12,760 --> 00:01:16,840 Speaker 1: critical issue as we're getting through a pandemic. UM, we 22 00:01:16,920 --> 00:01:20,880 Speaker 1: need to have a federal vision and investment to build 23 00:01:20,880 --> 00:01:24,720 Speaker 1: twenty century infrastructure. And so we're teamed with my colleague 24 00:01:24,760 --> 00:01:26,320 Speaker 1: at the n f l C i OH to say 25 00:01:26,360 --> 00:01:29,000 Speaker 1: in action is not an option UM. And we look 26 00:01:29,000 --> 00:01:31,840 Speaker 1: at infrastructure in in a in a in a broad sense. 27 00:01:31,880 --> 00:01:36,080 Speaker 1: We look at our physical infrastructure, focusing on our transportation networks, 28 00:01:36,080 --> 00:01:41,080 Speaker 1: our water systems, woral broadband, our energy grid UM. And 29 00:01:41,120 --> 00:01:43,920 Speaker 1: so you know the investments that need to be made. 30 00:01:44,080 --> 00:01:46,280 Speaker 1: We need to not just fix what we currently have, 31 00:01:46,840 --> 00:01:49,440 Speaker 1: but we need to know with autonomous vehicles and drones, 32 00:01:49,840 --> 00:01:52,560 Speaker 1: we need to modernize. And so you know, the numbers 33 00:01:52,600 --> 00:01:55,639 Speaker 1: are high, but I will tell your listeners the numbers 34 00:01:55,680 --> 00:01:58,920 Speaker 1: of doing nothing are pretty high. To the average American 35 00:01:58,960 --> 00:02:03,640 Speaker 1: loses dollars a year due to inadequate infrastructure. Currently, our 36 00:02:03,680 --> 00:02:09,760 Speaker 1: economy loses seven billion dollars lost productivity. So doing nothing 37 00:02:10,000 --> 00:02:13,280 Speaker 1: actually cost us more than making the investments necessary to 38 00:02:13,320 --> 00:02:16,520 Speaker 1: provide long term economic growth for our economy and modernizing 39 00:02:16,520 --> 00:02:20,680 Speaker 1: our infrastructure. Why has you know, I've lived obviously for 40 00:02:20,720 --> 00:02:24,320 Speaker 1: decades in America, and I've lived UM for a little 41 00:02:24,320 --> 00:02:29,240 Speaker 1: over a decade here in Germany altogether, both economies have 42 00:02:29,680 --> 00:02:34,240 Speaker 1: crumbling infrastructure, and these are the leading, you know, industrial 43 00:02:34,280 --> 00:02:37,560 Speaker 1: economies of the world. Why have we let it go 44 00:02:37,880 --> 00:02:42,679 Speaker 1: for so long? Greg, I think we've just rested on 45 00:02:42,720 --> 00:02:45,240 Speaker 1: our laurels. We are, you know, we built it up. 46 00:02:45,800 --> 00:02:48,560 Speaker 1: We made the massive investments to build the interstate highway system, 47 00:02:48,639 --> 00:02:51,880 Speaker 1: to to build out Amtrak, to do UM, to make 48 00:02:51,919 --> 00:02:53,639 Speaker 1: these big things, and then I think everyone said, well, 49 00:02:53,680 --> 00:02:56,760 Speaker 1: but job is done here. Um. I think there was 50 00:02:56,800 --> 00:02:59,600 Speaker 1: an austerity period in our in our government that that 51 00:03:00,080 --> 00:03:03,720 Speaker 1: is hesitant to make any big investments. And frankly, we've 52 00:03:03,720 --> 00:03:07,800 Speaker 1: waited too long. Everything has and and unfortunately that's the 53 00:03:07,800 --> 00:03:11,080 Speaker 1: way sometimes government works, as you wait until wait, until 54 00:03:11,080 --> 00:03:13,120 Speaker 1: it's it's right in your face, before the problem is 55 00:03:13,160 --> 00:03:14,720 Speaker 1: right in your face, before you have to solve it. 56 00:03:14,760 --> 00:03:17,760 Speaker 1: But I think we're past that point now and we 57 00:03:17,800 --> 00:03:20,639 Speaker 1: need to have the leadership and have the federal investments 58 00:03:20,680 --> 00:03:23,880 Speaker 1: that can can rebuild our infrastructure and make us a 59 00:03:23,880 --> 00:03:28,400 Speaker 1: modern competitive country. Again, Greg, how much of infrastructure spending 60 00:03:28,520 --> 00:03:32,160 Speaker 1: generally do you think should be some type of public 61 00:03:32,280 --> 00:03:35,600 Speaker 1: private effort as opposed to simply the government coming in 62 00:03:37,480 --> 00:03:40,760 Speaker 1: we think there is a role for P three's public 63 00:03:40,760 --> 00:03:44,680 Speaker 1: private partnerships in our infrastructure. You know, in general, I 64 00:03:44,680 --> 00:03:48,119 Speaker 1: don't think that is the primary solution here. I think 65 00:03:48,160 --> 00:03:51,880 Speaker 1: we need big federal spending UM, and the states and 66 00:03:51,920 --> 00:03:55,960 Speaker 1: local governments will meet, oftentimes sharing that cost as well. Um. 67 00:03:56,040 --> 00:03:58,840 Speaker 1: There are some places where P threes makes sense, UM, 68 00:03:58,920 --> 00:04:01,200 Speaker 1: but I think that is for US. It's a relatively 69 00:04:01,240 --> 00:04:05,560 Speaker 1: small part of the overall pie. And you mentioned, UM, 70 00:04:05,560 --> 00:04:09,560 Speaker 1: this isn't just you know, the plane vanilla infrastructure that 71 00:04:09,640 --> 00:04:15,720 Speaker 1: we that we think of, um, roads, bridges, ports, airports, 72 00:04:15,720 --> 00:04:20,680 Speaker 1: But the bill that the President has proposed is also 73 00:04:20,760 --> 00:04:28,080 Speaker 1: about childcare and nutrition and you know, broadband deployment. How 74 00:04:28,080 --> 00:04:34,840 Speaker 1: important is that other stuff to the US infrastructure. So 75 00:04:34,880 --> 00:04:36,560 Speaker 1: I think that's kind of what the debate is going 76 00:04:36,600 --> 00:04:39,720 Speaker 1: on right now. As you mentioned, President Biden put up 77 00:04:39,720 --> 00:04:43,880 Speaker 1: the American Jobs Plan, which included a lot of the 78 00:04:43,920 --> 00:04:46,919 Speaker 1: care economy, and we can again from the business community, 79 00:04:47,120 --> 00:04:49,320 Speaker 1: we think those are important and they need to be addressed. 80 00:04:49,680 --> 00:04:52,159 Speaker 1: But I think we're trying to get bipartisan consensus so 81 00:04:52,200 --> 00:04:54,280 Speaker 1: we can actually get a bill to the President's desk 82 00:04:54,320 --> 00:04:57,200 Speaker 1: this year. And if you look at the Republican counterproposal 83 00:04:57,240 --> 00:04:59,400 Speaker 1: that was put up by a Senator Shelling Moore Capital. 84 00:05:00,080 --> 00:05:02,880 Speaker 1: There does appear to be some bipartisan consensus that the 85 00:05:02,960 --> 00:05:06,000 Speaker 1: physical infrastructure is something that can be addressed in the 86 00:05:06,040 --> 00:05:09,320 Speaker 1: federal legislation this year. We may be able to tackle 87 00:05:09,400 --> 00:05:11,920 Speaker 1: some of those other issues down the road, but let 88 00:05:12,040 --> 00:05:14,320 Speaker 1: our view is let's get what can get done this 89 00:05:14,400 --> 00:05:17,080 Speaker 1: year now, and so that would be more focused on 90 00:05:17,200 --> 00:05:20,600 Speaker 1: the physical infrastructure, and then let's continue that conversation and 91 00:05:20,640 --> 00:05:23,159 Speaker 1: see if there are other ways that we can address 92 00:05:23,240 --> 00:05:25,240 Speaker 1: some of the other issues that the President has brought 93 00:05:25,320 --> 00:05:29,520 Speaker 1: up through the American Jobs Program. Greg, I guess from 94 00:05:29,600 --> 00:05:31,680 Speaker 1: labor's perspective, what do you think of the top two 95 00:05:31,760 --> 00:05:36,200 Speaker 1: or three items on your wish list that you'd like 96 00:05:36,279 --> 00:05:39,640 Speaker 1: to give to President Biden In Leaders of Congress here, 97 00:05:41,240 --> 00:05:43,960 Speaker 1: we would like to see what you know, the American's 98 00:05:44,040 --> 00:05:47,320 Speaker 1: Jobs planned. However, how our Congress ends up finally addressing that. 99 00:05:47,560 --> 00:05:50,120 Speaker 1: But the key part for that is is the big 100 00:05:50,279 --> 00:05:54,680 Speaker 1: upfront investment in our in our various transportation systems, um 101 00:05:54,720 --> 00:05:57,760 Speaker 1: you know, a stimulative type of investment that will sort 102 00:05:57,760 --> 00:06:00,800 Speaker 1: of reset the standard for our country allow us to 103 00:06:00,839 --> 00:06:03,480 Speaker 1: get some of the big projects done like Gateway for instance, 104 00:06:03,560 --> 00:06:08,039 Speaker 1: or the big people I mean gate Gateway. It's insane 105 00:06:08,040 --> 00:06:10,080 Speaker 1: that we haven't done that. We're talking about over a 106 00:06:10,120 --> 00:06:14,640 Speaker 1: hundred year old tunnels, um that are I go through them. 107 00:06:14,720 --> 00:06:17,080 Speaker 1: I go through them twice a day, and I kind 108 00:06:17,080 --> 00:06:19,360 Speaker 1: of have my fingers cross every time we go into 109 00:06:19,400 --> 00:06:23,280 Speaker 1: the tunnels. It's it's it's amazing. And and the fact 110 00:06:23,279 --> 00:06:26,640 Speaker 1: that we haven't found the you know, in the we're 111 00:06:27,400 --> 00:06:30,800 Speaker 1: our GDP UH is supported by that region and we 112 00:06:30,920 --> 00:06:33,200 Speaker 1: can't six hundred year old tunnels, it shows that our 113 00:06:33,240 --> 00:06:35,240 Speaker 1: priorities are kind of out of whack here. And if 114 00:06:35,240 --> 00:06:36,960 Speaker 1: you go down in Baltimore the B and P Tunnel, 115 00:06:37,000 --> 00:06:41,040 Speaker 1: that one was built during during US grants first term 116 00:06:41,080 --> 00:06:44,080 Speaker 1: as president, and that has that hasn't been been addressed. 117 00:06:44,120 --> 00:06:46,080 Speaker 1: So you know, but we need the big money from 118 00:06:46,080 --> 00:06:48,160 Speaker 1: the federal leadership to get from the federal government to 119 00:06:48,200 --> 00:06:50,200 Speaker 1: get all that stuff done. And then you know, when 120 00:06:50,240 --> 00:06:52,800 Speaker 1: you look at those big projects, they're going to succeed 121 00:06:52,839 --> 00:06:56,240 Speaker 1: when a lot of the local spending, whether it be transit, 122 00:06:56,279 --> 00:06:59,440 Speaker 1: whether it be other rail projects, highways and bridges, airports, 123 00:06:59,760 --> 00:07:02,840 Speaker 1: all of these things need to be upgraded, and they 124 00:07:02,880 --> 00:07:04,839 Speaker 1: they're going to rely on each other to be successful 125 00:07:04,839 --> 00:07:08,400 Speaker 1: down the road. All right, and this is UH. This 126 00:07:08,440 --> 00:07:12,120 Speaker 1: week is designated United for Infrastructure Week. It's actually the 127 00:07:12,240 --> 00:07:15,080 Speaker 1: ninth annual, but I have to admit the first time 128 00:07:15,120 --> 00:07:17,600 Speaker 1: I've heard of it. What what does that campaign hoped 129 00:07:17,600 --> 00:07:21,320 Speaker 1: to then accomplish? Paul, So, I think you know you 130 00:07:21,360 --> 00:07:23,720 Speaker 1: mentioned this is our ninth year, and so you know 131 00:07:23,760 --> 00:07:26,480 Speaker 1: we're glad to see it's taken a nine years, but 132 00:07:26,520 --> 00:07:29,240 Speaker 1: we're now at the top of the federal agenda UM 133 00:07:29,280 --> 00:07:32,920 Speaker 1: and this year our our theme is U Lead with 134 00:07:32,960 --> 00:07:37,280 Speaker 1: Infrastructure UM. In Action on infrastructure this year is not 135 00:07:37,400 --> 00:07:40,240 Speaker 1: an option from our perspective, and we truly want to 136 00:07:40,240 --> 00:07:44,480 Speaker 1: see this federal legislation bipartisan solutions that will provide a 137 00:07:44,520 --> 00:07:48,360 Speaker 1: long term blueprint for infrastructure moving forward. Ed Mortimer and 138 00:07:48,400 --> 00:07:55,680 Speaker 1: Greg Reagan, thank you very much. This is Bloomberg. Now, 139 00:07:55,680 --> 00:07:57,840 Speaker 1: as fall said, we're gonna bring in Brian Smallock right now. 140 00:07:57,840 --> 00:08:00,560 Speaker 1: He is a principal and portfolio manage. You're at Hood 141 00:08:00,640 --> 00:08:03,640 Speaker 1: river Hood River Capital Management. They have three and a 142 00:08:03,640 --> 00:08:08,520 Speaker 1: half billion dollars under management. Brian, UM, let me first 143 00:08:08,560 --> 00:08:11,720 Speaker 1: get your reaction to the inflation print. It was twice 144 00:08:11,760 --> 00:08:16,200 Speaker 1: as high as the highest UM the highest forecast I 145 00:08:16,200 --> 00:08:18,680 Speaker 1: guess in our survey, and if you look at the 146 00:08:18,680 --> 00:08:25,120 Speaker 1: core number, the biggest game since Yeah, the inflation is 147 00:08:25,120 --> 00:08:27,840 Speaker 1: definitely ticking up. When we talked to our companies, you 148 00:08:27,880 --> 00:08:32,080 Speaker 1: see it across the board. It's not that surprising to us, 149 00:08:32,320 --> 00:08:36,319 Speaker 1: given the amount of money that's been printed, how expansionary 150 00:08:36,320 --> 00:08:39,640 Speaker 1: money policy has been, and the fact that we're paying 151 00:08:39,720 --> 00:08:44,400 Speaker 1: people to not work. So you're seeing you're seeing wage 152 00:08:44,400 --> 00:08:47,640 Speaker 1: pressure as the economy is coming back with a vengeance. 153 00:08:47,679 --> 00:08:52,840 Speaker 1: So that combination isn't great. I think it's going to persist. 154 00:08:52,880 --> 00:08:55,320 Speaker 1: And you have to take an account whenever you're looking 155 00:08:55,320 --> 00:08:58,679 Speaker 1: at any sort of stock, can they manage cost pressures 156 00:08:58,760 --> 00:09:01,120 Speaker 1: or Martin is gonna hold up? And as the top 157 00:09:01,200 --> 00:09:06,559 Speaker 1: line benefit of reopening outweigh the negatives of cost pressure 158 00:09:06,600 --> 00:09:11,880 Speaker 1: coming from inflation. Brian, You guys, uh, they're managing. Focus 159 00:09:11,920 --> 00:09:14,760 Speaker 1: on small cap stocks, give us a sense of kind 160 00:09:14,760 --> 00:09:17,479 Speaker 1: of how they've been performing kind of throughout this pandemic 161 00:09:17,520 --> 00:09:20,040 Speaker 1: and kind of what what's your view of that kind 162 00:09:20,080 --> 00:09:23,600 Speaker 1: of that part of the market right now. So small 163 00:09:23,640 --> 00:09:29,360 Speaker 1: cap has been extremely strong since the pandemic has broken. 164 00:09:29,600 --> 00:09:32,840 Speaker 1: There's been multiple reasons for that for that to happen. 165 00:09:33,800 --> 00:09:38,839 Speaker 1: Small cap companies have more domestic focus, so the top 166 00:09:38,880 --> 00:09:41,480 Speaker 1: line is held in better. Small cap companies are also 167 00:09:41,960 --> 00:09:46,160 Speaker 1: more nimbles, so they can adjust their business models um. 168 00:09:46,400 --> 00:09:49,960 Speaker 1: And and they don't have as much currency exposure, so 169 00:09:49,960 --> 00:09:52,760 Speaker 1: so that's that's so that's a good thing too. Um. 170 00:09:52,840 --> 00:09:55,000 Speaker 1: If you look on an absolute basis, the Restle two 171 00:09:55,000 --> 00:09:59,440 Speaker 1: dozen growth index last year was up almost so it's huge. 172 00:10:00,240 --> 00:10:02,560 Speaker 1: This year, it's not up as much, but you've seen 173 00:10:02,559 --> 00:10:07,280 Speaker 1: a big shift front within the index and within small 174 00:10:07,320 --> 00:10:09,800 Speaker 1: cap in general, from growth to value. So it's just 175 00:10:09,880 --> 00:10:12,520 Speaker 1: been more important over the last four or five months 176 00:10:12,520 --> 00:10:14,480 Speaker 1: to pay attention to evaluation, which it's obviously something that 177 00:10:14,520 --> 00:10:16,839 Speaker 1: we focused on up the river. Will small caps get 178 00:10:16,920 --> 00:10:21,520 Speaker 1: hit harder by wage pressure? I mean we talk about 179 00:10:22,240 --> 00:10:23,920 Speaker 1: people not wanting to come back to work if they're 180 00:10:23,920 --> 00:10:26,760 Speaker 1: getting paid to stay home essentially, and Paul and I 181 00:10:26,840 --> 00:10:30,600 Speaker 1: hear this from you know, hotel operators, restaurant owners, et cetera. 182 00:10:30,840 --> 00:10:33,720 Speaker 1: But the bottom line is, um, if you pay them more, 183 00:10:33,760 --> 00:10:36,079 Speaker 1: they'll come in right, So, uh, is that going to 184 00:10:36,200 --> 00:10:40,199 Speaker 1: hit smaller businesses harder? I think for the most part 185 00:10:40,280 --> 00:10:43,520 Speaker 1: they'll laeable to manage through it. And hopever, we can 186 00:10:43,520 --> 00:10:45,720 Speaker 1: do it on a case by case basis. You just 187 00:10:45,760 --> 00:10:49,040 Speaker 1: want to be in businesses that have pricing power and 188 00:10:49,080 --> 00:10:54,320 Speaker 1: can put through cost pressures in a relatively time timely fashion. 189 00:10:54,480 --> 00:10:57,400 Speaker 1: So like, for example, if you're a banker insurance company, 190 00:10:57,400 --> 00:11:00,440 Speaker 1: you can do that pretty quickly. Um, if you're selling actresses, 191 00:11:00,480 --> 00:11:03,120 Speaker 1: you can take up the price your mattresses if demand 192 00:11:03,120 --> 00:11:06,200 Speaker 1: exceeds supply. So for the most part, I think it's okay, 193 00:11:06,240 --> 00:11:08,040 Speaker 1: but they're going to be surprises and you have to 194 00:11:08,080 --> 00:11:11,280 Speaker 1: be able to manage it. And that's that's why in 195 00:11:11,360 --> 00:11:14,440 Speaker 1: small cap it makes sense to use an active manager 196 00:11:14,480 --> 00:11:17,280 Speaker 1: because it's inefficient. You can figure out what businesses are 197 00:11:17,280 --> 00:11:21,240 Speaker 1: gonna be able to adjust to the dynamic inflationary environment. So, Brian, 198 00:11:21,280 --> 00:11:23,720 Speaker 1: I know you guys are overweight financials. Talk to us 199 00:11:23,720 --> 00:11:27,000 Speaker 1: about some of those regional banks. Why you like that 200 00:11:27,160 --> 00:11:30,440 Speaker 1: part of the market and presumably seeping in yield curves 201 00:11:30,480 --> 00:11:33,800 Speaker 1: to their benefit. And presumably I guess a reopening trade 202 00:11:33,800 --> 00:11:35,440 Speaker 1: to the economy has gotta be good for their their 203 00:11:35,480 --> 00:11:39,520 Speaker 1: loan book. Yeah, exactly, so, so you have loan growth 204 00:11:39,520 --> 00:11:42,199 Speaker 1: that's going to be accelerating in margins which are basically 205 00:11:42,320 --> 00:11:45,120 Speaker 1: at all time lows because the yield curve has been 206 00:11:45,240 --> 00:11:48,559 Speaker 1: terrible for their business, and now if that improves, you 207 00:11:48,559 --> 00:11:52,160 Speaker 1: can see a dramatic uptick in their margins and acceleration 208 00:11:52,240 --> 00:11:56,320 Speaker 1: their loan growth. And the stocks are relatively inexpensive. When 209 00:11:56,320 --> 00:11:57,719 Speaker 1: we look at the rest of the market, you can 210 00:11:57,720 --> 00:12:00,800 Speaker 1: easily find a regional bank that trade anywhere from ten 211 00:12:00,880 --> 00:12:04,560 Speaker 1: to thirteen times earnings. Compare that to your typical tech 212 00:12:04,640 --> 00:12:07,920 Speaker 1: stock or biotech stock or software company. It's a lot 213 00:12:07,960 --> 00:12:11,040 Speaker 1: more expensive. Those stocks were run up during the pandemic, 214 00:12:11,480 --> 00:12:12,839 Speaker 1: and that's part of the reason why you've seen this 215 00:12:12,920 --> 00:12:16,600 Speaker 1: trade from from growth to value. It's because you're seeing 216 00:12:16,600 --> 00:12:20,080 Speaker 1: relative value of companies like regional banks. They are seeing 217 00:12:20,080 --> 00:12:23,000 Speaker 1: their business has improved and they look absolutely cheap. Then 218 00:12:23,000 --> 00:12:26,720 Speaker 1: your pick is Western Alliance. We like Western Alliance. We 219 00:12:26,720 --> 00:12:28,560 Speaker 1: also in Try State, which is another one the reason 220 00:12:28,600 --> 00:12:30,400 Speaker 1: why I like Western Alliance that they've had a good 221 00:12:30,480 --> 00:12:33,719 Speaker 1: loan growth franchise or extended period of time. They grow 222 00:12:33,760 --> 00:12:36,440 Speaker 1: their loans north of teen percent. They have a best 223 00:12:36,480 --> 00:12:41,360 Speaker 1: in class efficiency ratio covering it around. They just did 224 00:12:41,400 --> 00:12:43,920 Speaker 1: a really acreative deal which we think is over thirty 225 00:12:44,240 --> 00:12:48,000 Speaker 1: of creative earnings called the Mara Home. So the earnings 226 00:12:48,120 --> 00:12:51,160 Speaker 1: estimates need to move up fairly substantially for next year, 227 00:12:51,200 --> 00:12:53,600 Speaker 1: and it's cheap and around eleven tents earnings. You also 228 00:12:53,640 --> 00:12:56,199 Speaker 1: like Purple. You mentioned mattress sellers, and I thought, what's that? 229 00:12:56,240 --> 00:12:59,439 Speaker 1: Where's that coming from? But I see that you like Purple, 230 00:12:59,480 --> 00:13:01,199 Speaker 1: and I know they are a few Bloomberg anchors who 231 00:13:01,200 --> 00:13:05,520 Speaker 1: sleep on those mattresses. Yeah, so the smallest, just about 232 00:13:05,559 --> 00:13:09,960 Speaker 1: three of them. Uh, And we like it. We we 233 00:13:10,080 --> 00:13:13,480 Speaker 1: like the product a lot. Uh. It's a lot better 234 00:13:13,559 --> 00:13:16,760 Speaker 1: than a than a phone mathress, which which tends to 235 00:13:16,960 --> 00:13:20,280 Speaker 1: sleep a little hot and loses the shape over time. 236 00:13:21,120 --> 00:13:25,560 Speaker 1: Us the only one that has a special polymer. And 237 00:13:25,600 --> 00:13:27,559 Speaker 1: so so it's so so there's actually no prusch. You 238 00:13:27,559 --> 00:13:33,160 Speaker 1: cantually put an egg under you soft soft related anyway. 239 00:13:33,240 --> 00:13:37,359 Speaker 1: So so so Purple is stealing ship. They just prenounced 240 00:13:37,520 --> 00:13:40,360 Speaker 1: the quarter yesterday to beat on top line, and more importantly, 241 00:13:40,360 --> 00:13:42,640 Speaker 1: they beat on margins. All right, refinitely give it there, 242 00:13:42,640 --> 00:13:44,280 Speaker 1: But that's a good name. We will do some more 243 00:13:44,280 --> 00:13:47,040 Speaker 1: digging there. We'll chat with you coming up soon. Brian Smaller, 244 00:13:47,080 --> 00:13:52,760 Speaker 1: Principal portfolio manager, hood River Capital Management. I want to 245 00:13:52,760 --> 00:13:56,400 Speaker 1: bring in Mike McLane or commodity strategist for Bloomberg Intelligence, 246 00:13:56,440 --> 00:13:58,400 Speaker 1: to talk about cryptos, and Mike, we do talk to 247 00:13:58,440 --> 00:14:01,560 Speaker 1: you on a reg basis about cryptos. One of the 248 00:14:01,600 --> 00:14:03,920 Speaker 1: things we've been hearing a lot more and more of 249 00:14:04,000 --> 00:14:09,080 Speaker 1: the past months is these uh, these currencies or these 250 00:14:09,120 --> 00:14:14,120 Speaker 1: blockchain systems are becoming regulated and becoming more acceptable and 251 00:14:14,120 --> 00:14:18,160 Speaker 1: and and getting into the mainstream, which to me, you know, 252 00:14:18,320 --> 00:14:22,640 Speaker 1: as a kind of libertarian, red blooded American, is such 253 00:14:22,680 --> 00:14:27,440 Speaker 1: a bummer. That's why I am so pumped about the 254 00:14:27,480 --> 00:14:33,239 Speaker 1: Internet computer. It is putting another layer of censorship protection 255 00:14:33,320 --> 00:14:37,480 Speaker 1: between you know, ethereum smart contracts and and and users. 256 00:14:38,360 --> 00:14:41,600 Speaker 1: Plus it's been wildly popular talk to us about this 257 00:14:41,680 --> 00:14:45,320 Speaker 1: new um, this new system, and it's got a utility 258 00:14:45,360 --> 00:14:47,240 Speaker 1: token of course. Well that's another thing we both have 259 00:14:47,280 --> 00:14:50,560 Speaker 1: in common, Matt. We both have that Midwestern sensibility. I'm 260 00:14:50,680 --> 00:14:54,640 Speaker 1: from Chicago, You're Cleveland, right, and you know Columbus Columbus, 261 00:14:54,720 --> 00:14:57,080 Speaker 1: We go Hi, we drive boy the many times in 262 00:14:57,120 --> 00:15:01,360 Speaker 1: the Interstate eight. And I'm trying to understand more about 263 00:15:01,400 --> 00:15:04,120 Speaker 1: what it really is. But what it's what it's catching 264 00:15:04,360 --> 00:15:07,720 Speaker 1: me and grabbing me is there's so many signs of 265 00:15:07,840 --> 00:15:11,400 Speaker 1: two thousand seventeen, like things kept coming into space like you. 266 00:15:11,400 --> 00:15:13,880 Speaker 1: You and the Internet computer might have a good solid 267 00:15:13,960 --> 00:15:15,880 Speaker 1: use case. I just haven't dug into it much lately. 268 00:15:15,880 --> 00:15:18,600 Speaker 1: In fact, just I just sent to editors my my 269 00:15:18,840 --> 00:15:22,200 Speaker 1: theory um Um technical outlook because I want to write 270 00:15:22,640 --> 00:15:24,920 Speaker 1: a primer on that for next week. And then I 271 00:15:25,000 --> 00:15:28,040 Speaker 1: look at I think, look at then you're gonna love it. 272 00:15:28,080 --> 00:15:30,400 Speaker 1: I had to say, Mike, you are going to love 273 00:15:30,400 --> 00:15:34,400 Speaker 1: it because what this does it doesn't necessarily compete with ethereum, 274 00:15:34,520 --> 00:15:38,160 Speaker 1: but it helps Ethereum work on a decentralized Internet. So 275 00:15:38,720 --> 00:15:41,400 Speaker 1: you know, right now, if you're using ethereum smart contract, 276 00:15:41,560 --> 00:15:46,400 Speaker 1: chances are you're using it over a website that's hosted 277 00:15:46,440 --> 00:15:49,760 Speaker 1: by Amazon Web Services or Microsoft, and then you get 278 00:15:49,760 --> 00:15:54,880 Speaker 1: this big tech governance layer in there that can affect 279 00:15:55,040 --> 00:15:59,600 Speaker 1: your transaction or um you know, your outcome. But what 280 00:16:00,080 --> 00:16:04,920 Speaker 1: the Internet computer does is um It's blockchain works over 281 00:16:05,400 --> 00:16:10,160 Speaker 1: a number of many, multiple different servers around the world, 282 00:16:10,360 --> 00:16:13,840 Speaker 1: none of which are at any time in control of 283 00:16:13,880 --> 00:16:19,280 Speaker 1: your contracts. So it completely decentralizes um the the use 284 00:16:19,400 --> 00:16:23,160 Speaker 1: of these Ethereum contracts over the Internet and takes out 285 00:16:23,200 --> 00:16:25,640 Speaker 1: that layer of control that you know big tech government 286 00:16:25,640 --> 00:16:28,280 Speaker 1: would have if you are using it over Amazon or Microsoft. 287 00:16:28,560 --> 00:16:31,360 Speaker 1: It sounds like a win win. I'm so impressed it 288 00:16:31,480 --> 00:16:34,080 Speaker 1: jumped up so fast. UM. And how long has it 289 00:16:34,080 --> 00:16:36,480 Speaker 1: been around I mean just recently as lunch right. Well, 290 00:16:36,600 --> 00:16:40,320 Speaker 1: they've been developing it for years, but UM, it's only 291 00:16:40,560 --> 00:16:45,600 Speaker 1: recently UM been put out there, UM on display and 292 00:16:45,680 --> 00:16:49,720 Speaker 1: immediately was brought into trade on coin basically started trading 293 00:16:49,720 --> 00:16:53,040 Speaker 1: on Monday. It's already worth forty eight billion dollars in 294 00:16:53,080 --> 00:16:56,000 Speaker 1: market cap, one of the biggest cryptos out there. But 295 00:16:56,040 --> 00:16:58,360 Speaker 1: the token itself, which is what I keep trying to 296 00:16:58,400 --> 00:17:02,760 Speaker 1: tell people, isn't as exciting or important as UM, the 297 00:17:02,800 --> 00:17:06,960 Speaker 1: blockchain platform that they've created, which is the case for 298 00:17:07,040 --> 00:17:08,880 Speaker 1: so many of these things. I've noticed. It's a coin 299 00:17:08,920 --> 00:17:11,440 Speaker 1: market kept on dot com. It's number nine. It looks 300 00:17:11,440 --> 00:17:14,560 Speaker 1: like it's moving up rapidly. But to me it makes 301 00:17:14,600 --> 00:17:18,000 Speaker 1: complete sense. Is what's happening Like with Ethereum, everybody's realizing, 302 00:17:18,520 --> 00:17:21,120 Speaker 1: oh wow, this is the platform for the space. Looks 303 00:17:21,160 --> 00:17:22,760 Speaker 1: like this is a major company. When you look at 304 00:17:22,760 --> 00:17:25,480 Speaker 1: things like Tether, it's most widely traded on the entire space. 305 00:17:25,760 --> 00:17:28,360 Speaker 1: Tether is an Ethereum token, and it looks like they're 306 00:17:28,359 --> 00:17:30,320 Speaker 1: all just complimenting each other and the rest of the 307 00:17:30,320 --> 00:17:32,800 Speaker 1: financial world, like we come back to our own backgrounds, 308 00:17:32,800 --> 00:17:35,520 Speaker 1: like us young as older people have to say, which 309 00:17:35,560 --> 00:17:37,679 Speaker 1: just embraces technology, and that's what I see them as 310 00:17:37,720 --> 00:17:42,040 Speaker 1: happening Wall Street financialization avances. You say that as you 311 00:17:42,040 --> 00:17:44,159 Speaker 1: look at that list of the top cryptos, what I 312 00:17:44,200 --> 00:17:47,760 Speaker 1: don't see is a JP Morgan branded one or a 313 00:17:47,760 --> 00:17:51,199 Speaker 1: Wells Fargo branded one. To me, it's still as I 314 00:17:51,240 --> 00:17:53,920 Speaker 1: listened to some of these you know big banks, cus 315 00:17:54,080 --> 00:17:57,159 Speaker 1: they're still not there, are they. Oh no, well they're not. 316 00:17:57,280 --> 00:17:59,600 Speaker 1: They're also And then there's an investment case. You know, 317 00:17:59,640 --> 00:18:03,560 Speaker 1: you what's really stilted this year's if you don't add 318 00:18:03,640 --> 00:18:06,159 Speaker 1: bitcoin to your portfolio, allow your clients to do it, 319 00:18:06,160 --> 00:18:08,160 Speaker 1: you're gonna lose money and you may look look really 320 00:18:08,200 --> 00:18:11,080 Speaker 1: bad ten years from now. But things like dose coin 321 00:18:11,160 --> 00:18:13,880 Speaker 1: you can't. That's just expeculative. So we have to differentiate 322 00:18:13,920 --> 00:18:16,199 Speaker 1: the difference. It looks like to me, we have a 323 00:18:16,200 --> 00:18:18,720 Speaker 1: major use case for intricate net computer and then you 324 00:18:18,720 --> 00:18:21,800 Speaker 1: look at dose coin that's just gambling, so trading versus investing. 325 00:18:21,840 --> 00:18:23,879 Speaker 1: It looks like in the computer Internet, and it's annoying 326 00:18:23,960 --> 00:18:27,320 Speaker 1: that investments in the investment bucket. It's to me, it's annoying, 327 00:18:27,359 --> 00:18:30,760 Speaker 1: you know, because and I'll say this, I'm not long crypto, 328 00:18:30,960 --> 00:18:33,359 Speaker 1: so just everyone knows, you know, I have used this 329 00:18:33,400 --> 00:18:37,000 Speaker 1: in the past. I might have fragments of a bitcoin 330 00:18:37,119 --> 00:18:41,360 Speaker 1: in a locked wallet, but which because I'm because I'm 331 00:18:41,480 --> 00:18:43,800 Speaker 1: reporting on it, I never really thought it would be 332 00:18:43,840 --> 00:18:46,600 Speaker 1: ethical to buy it. I wish I hadn't been so 333 00:18:46,640 --> 00:18:48,879 Speaker 1: ethical because I'd be driving the lambos right now. But 334 00:18:50,280 --> 00:18:54,160 Speaker 1: I just think it's fascinating and the does coin aspect 335 00:18:54,280 --> 00:18:57,239 Speaker 1: kind of um, it's a b in my bonnet right 336 00:18:57,280 --> 00:19:00,119 Speaker 1: because it's it's such a it's a meme coin, and 337 00:19:00,119 --> 00:19:02,879 Speaker 1: it's so useless and meaningless. I mean, it's not useless 338 00:19:02,920 --> 00:19:05,080 Speaker 1: obviously anymore, because it's worth a lot of money. But 339 00:19:05,480 --> 00:19:08,800 Speaker 1: it annoys me when people look at the Internet computer 340 00:19:09,000 --> 00:19:11,240 Speaker 1: which has a silly name, and then they think, oh, 341 00:19:11,280 --> 00:19:14,520 Speaker 1: this is just another meme coin. Well, this is definitely 342 00:19:14,520 --> 00:19:16,719 Speaker 1: not another meme coin. I know. We can see that. 343 00:19:16,840 --> 00:19:19,040 Speaker 1: The key thing I think people need to differentiate about 344 00:19:19,040 --> 00:19:21,520 Speaker 1: things like dose coining. And I have twenty something kids 345 00:19:21,880 --> 00:19:24,120 Speaker 1: and all their friends that's what they talk about that's 346 00:19:24,119 --> 00:19:28,399 Speaker 1: what it's fun. It's like more than kids exactly in 347 00:19:28,440 --> 00:19:30,520 Speaker 1: their twenties. And but that's what they you know. Just 348 00:19:30,560 --> 00:19:31,960 Speaker 1: think of the money you might have spent at a 349 00:19:32,000 --> 00:19:34,480 Speaker 1: bar or a restaurant, or to a game, or going 350 00:19:34,480 --> 00:19:36,360 Speaker 1: to the track or going to a casino. Why not 351 00:19:36,440 --> 00:19:38,560 Speaker 1: we can't. You can do it on your phone with 352 00:19:38,600 --> 00:19:40,520 Speaker 1: your friends and drink at a bar and double dog 353 00:19:40,560 --> 00:19:42,760 Speaker 1: there each other over social media. And to me, that's 354 00:19:42,760 --> 00:19:45,640 Speaker 1: what's happening on a global scale. But then I look 355 00:19:45,640 --> 00:19:48,160 Speaker 1: at it in a computer and whoa, this is impressive. 356 00:19:48,160 --> 00:19:51,400 Speaker 1: But this is part of that rapidly advancing technology overwhelming us. 357 00:19:53,400 --> 00:19:55,159 Speaker 1: I can't buy it on DraftKings. I don't think you 358 00:19:55,160 --> 00:19:57,480 Speaker 1: can buy dose corn on draft kings yet. But maybe 359 00:19:57,880 --> 00:20:00,520 Speaker 1: along with your black jack hands and poker and it's 360 00:20:00,520 --> 00:20:03,440 Speaker 1: all a boy, you could pick it up. Recommend their 361 00:20:03,560 --> 00:20:07,080 Speaker 1: strategy Mike mcloan Commodity Strategies for Bloomberg Intelligence. Thanks for 362 00:20:07,160 --> 00:20:13,479 Speaker 1: joining us. This is Bloomberg. Let's get over right now 363 00:20:13,520 --> 00:20:17,800 Speaker 1: to Calm Vault. The CEO, Sanjay merchand Donnie joins us 364 00:20:17,800 --> 00:20:23,600 Speaker 1: to talk about what businesses can do using data, maybe differently, 365 00:20:24,000 --> 00:20:28,480 Speaker 1: in order to increase the their or reduce their integrity 366 00:20:28,560 --> 00:20:31,719 Speaker 1: gap increase their success. Sanji talked to us about what 367 00:20:31,800 --> 00:20:37,280 Speaker 1: com Vault does. First. Umball has been in the data 368 00:20:37,320 --> 00:20:40,040 Speaker 1: business since the beginning. We've been around twenty five years. 369 00:20:40,040 --> 00:20:43,600 Speaker 1: This year's our anniversary as a company, and we help 370 00:20:43,640 --> 00:20:46,119 Speaker 1: customers and what we call that data journey, which is 371 00:20:46,160 --> 00:20:49,679 Speaker 1: about really how they store, protect, manage and use data 372 00:20:50,320 --> 00:20:52,199 Speaker 1: UM And we do this through a series of um 373 00:20:52,640 --> 00:20:55,680 Speaker 1: Intelligent data services delivered you through the cloud or on premise. 374 00:20:55,760 --> 00:20:57,359 Speaker 1: So you know, we've been in the data business all 375 00:20:57,400 --> 00:20:59,920 Speaker 1: through and that's what we do today, all right, Sanja 376 00:21:00,200 --> 00:21:03,240 Speaker 1: In you know the prior fourteen months, the way everybody 377 00:21:03,320 --> 00:21:05,840 Speaker 1: goes about their daily lives has been upended, the way 378 00:21:05,880 --> 00:21:08,920 Speaker 1: we work, the way we learn, doing it much more 379 00:21:09,000 --> 00:21:14,040 Speaker 1: on a remote basis, was corporate America? Was the average 380 00:21:14,080 --> 00:21:17,960 Speaker 1: household ready for this from a data perspective, a data storage, 381 00:21:17,960 --> 00:21:23,199 Speaker 1: a data retrieval, a data data security perspective, You know, 382 00:21:23,280 --> 00:21:26,280 Speaker 1: absolutely not, Because what happened was, you know, I like 383 00:21:26,320 --> 00:21:28,040 Speaker 1: to think, I like to simplify things, and in my 384 00:21:28,080 --> 00:21:30,680 Speaker 1: mind there were were sort of seen three structural shifts 385 00:21:30,720 --> 00:21:33,440 Speaker 1: in the last fourteen months. First, when the pandemic came 386 00:21:33,520 --> 00:21:35,760 Speaker 1: upon us. It was all about, gosh, how do we 387 00:21:35,800 --> 00:21:38,439 Speaker 1: get people working remotely? How does this even happen? So 388 00:21:38,520 --> 00:21:41,040 Speaker 1: you know, things like firewalls and getting them laptops and 389 00:21:41,119 --> 00:21:43,800 Speaker 1: changing business process that they could do things. We got 390 00:21:43,840 --> 00:21:47,040 Speaker 1: through that, um, you know, and then quickly got into 391 00:21:47,080 --> 00:21:49,280 Speaker 1: the phase we said, how do we optimize this, you know, 392 00:21:49,280 --> 00:21:50,840 Speaker 1: how do we sort of really make sure that we're 393 00:21:50,880 --> 00:21:52,639 Speaker 1: doing this right because this is here to stay and 394 00:21:52,960 --> 00:21:55,560 Speaker 1: that's been going where in the throes of that and 395 00:21:55,600 --> 00:21:58,240 Speaker 1: then now we're sort of seeing a third structural shift 396 00:21:58,280 --> 00:22:00,720 Speaker 1: that's happening where folks are you know, quickly moving to 397 00:22:00,720 --> 00:22:05,399 Speaker 1: public cloud services, quickly moving into digital transformational capabilities, and 398 00:22:05,480 --> 00:22:08,040 Speaker 1: this is where data becomes key. And all through this 399 00:22:08,119 --> 00:22:10,760 Speaker 1: journey of the last fourteen months, what's really come to 400 00:22:10,760 --> 00:22:14,840 Speaker 1: before is that that enterprises businesses that are looking at 401 00:22:14,880 --> 00:22:17,320 Speaker 1: data as a as a vital asset our ted would 402 00:22:17,320 --> 00:22:19,359 Speaker 1: will tend to do better because it's it's you know, 403 00:22:19,400 --> 00:22:22,240 Speaker 1: it really is now the lifeblood, the core capability inside 404 00:22:22,240 --> 00:22:25,359 Speaker 1: of a business. And what we do is all the 405 00:22:25,359 --> 00:22:28,520 Speaker 1: way through we've helped customers really do that journey, you know, 406 00:22:28,640 --> 00:22:31,440 Speaker 1: make sure that as they transform, as they go through 407 00:22:31,440 --> 00:22:34,560 Speaker 1: these structural shifts. Data is front and center, it's being protected, 408 00:22:34,600 --> 00:22:37,359 Speaker 1: it's giving them the asset to analyze to run their 409 00:22:37,400 --> 00:22:40,000 Speaker 1: business with. So I'd say that you know, no one 410 00:22:40,119 --> 00:22:43,040 Speaker 1: was really prepared and just for what would happen data 411 00:22:43,040 --> 00:22:46,159 Speaker 1: protection or or you know, using data really turned on 412 00:22:46,240 --> 00:22:49,399 Speaker 1: its head. But we've been resilient, we've been quick, and 413 00:22:49,440 --> 00:22:52,320 Speaker 1: we've been able to as a you know, um as 414 00:22:52,320 --> 00:22:54,640 Speaker 1: companies don't turn around and help and and really get there. 415 00:22:54,840 --> 00:22:56,399 Speaker 1: So I think we're much better today that we were 416 00:22:56,440 --> 00:22:58,719 Speaker 1: fourteen months ago, and we're not going back. I mean, 417 00:22:58,720 --> 00:23:02,040 Speaker 1: how much of it the sticky sound? I think a 418 00:23:02,119 --> 00:23:03,560 Speaker 1: lot of it is thinking. I think you know what 419 00:23:03,600 --> 00:23:06,080 Speaker 1: it's taught as is UH. You know that there are 420 00:23:06,119 --> 00:23:08,439 Speaker 1: benefits and being able to do things remotely. You know, 421 00:23:08,480 --> 00:23:10,920 Speaker 1: you don't have to go into your data center for everything. 422 00:23:10,960 --> 00:23:12,840 Speaker 1: You don't have to travel across the world to have 423 00:23:12,880 --> 00:23:15,560 Speaker 1: a meal with a customer, UH to close the deal. 424 00:23:15,560 --> 00:23:17,640 Speaker 1: There are many other ways you can you can get 425 00:23:17,640 --> 00:23:19,880 Speaker 1: this done, and I think there are some benefits. There's 426 00:23:19,880 --> 00:23:22,600 Speaker 1: also some some downside. You know, there's a lot of burnout, 427 00:23:22,600 --> 00:23:24,920 Speaker 1: there's a lot of you know, screen time that that 428 00:23:24,960 --> 00:23:26,960 Speaker 1: people are happy to get away from and get back 429 00:23:26,960 --> 00:23:29,600 Speaker 1: in person. But I think there are some things in 430 00:23:29,680 --> 00:23:33,640 Speaker 1: here that exam will stay remote, light touch, Uh, these 431 00:23:33,640 --> 00:23:36,520 Speaker 1: are these are good things, um, digital transformation, these are 432 00:23:36,560 --> 00:23:39,200 Speaker 1: good things, and I think they're here to stay. Sun. 433 00:23:39,600 --> 00:23:41,479 Speaker 1: One of the things we're concerned about with more and 434 00:23:41,480 --> 00:23:44,720 Speaker 1: more remote work remote learning is the security of the data. 435 00:23:44,680 --> 00:23:46,920 Speaker 1: And we see that yet again with a colonial pipeline 436 00:23:46,960 --> 00:23:50,199 Speaker 1: hack and that the problems it's causing. Where do you 437 00:23:50,320 --> 00:23:52,400 Speaker 1: think you know, it takes me when when you look 438 00:23:52,400 --> 00:23:55,399 Speaker 1: at the companies that you work with, where are we 439 00:23:55,440 --> 00:23:58,240 Speaker 1: in terms of really securing our systems and our data? 440 00:24:00,560 --> 00:24:03,480 Speaker 1: You know, this is a continuous thing. Um, let's let's 441 00:24:03,520 --> 00:24:07,080 Speaker 1: let's be oversimplified. You know, the bad guys, what do 442 00:24:07,080 --> 00:24:09,960 Speaker 1: they want? They want the data. It's not about the infrastructure, 443 00:24:09,960 --> 00:24:12,679 Speaker 1: It's about the data so much. And uh, and the 444 00:24:12,680 --> 00:24:15,919 Speaker 1: new frontier is really is really the digital the digital asset, 445 00:24:15,960 --> 00:24:18,720 Speaker 1: which is effectively, I hope you know, is the data. 446 00:24:19,320 --> 00:24:21,080 Speaker 1: So what we have to do is really think of 447 00:24:21,160 --> 00:24:23,240 Speaker 1: data as the assets that you have to protect in 448 00:24:23,280 --> 00:24:25,919 Speaker 1: different ways. It's not just physically you know, putting you know, 449 00:24:25,920 --> 00:24:28,600 Speaker 1: putting bigger walls of modes. It's really really saying Okay, 450 00:24:28,640 --> 00:24:31,840 Speaker 1: what data matters, Where does it live, what are the 451 00:24:31,880 --> 00:24:34,240 Speaker 1: policies we want to have it around, who gets access 452 00:24:34,280 --> 00:24:36,960 Speaker 1: to it? And so it's really it's really doubling down 453 00:24:37,000 --> 00:24:39,280 Speaker 1: on the way we manage data and the way we 454 00:24:39,359 --> 00:24:42,520 Speaker 1: think about data. That becomes key, you know, because the 455 00:24:42,600 --> 00:24:45,040 Speaker 1: vectors will keep changing. A few years ago it was 456 00:24:45,080 --> 00:24:48,280 Speaker 1: a different attack vector. Today it's it's ransomware. Tomorrow it 457 00:24:48,320 --> 00:24:51,000 Speaker 1: will be something else. What really matters is what are 458 00:24:51,000 --> 00:24:53,280 Speaker 1: the core assets, what are the concentric circles of data 459 00:24:53,320 --> 00:24:56,119 Speaker 1: that really really run your business that are important? And 460 00:24:56,440 --> 00:24:59,080 Speaker 1: how do you protect that your I p H. And 461 00:24:59,119 --> 00:25:00,840 Speaker 1: what we do is is, you know, you're never a 462 00:25:00,960 --> 00:25:04,040 Speaker 1: hundred percent safe because you know, things just keep you know, 463 00:25:04,119 --> 00:25:07,080 Speaker 1: the the attack surface just gets keeps getting better. What 464 00:25:07,200 --> 00:25:09,840 Speaker 1: we have to do is help companies, help businesses who 465 00:25:09,920 --> 00:25:13,399 Speaker 1: who don't, who weren't built to have Pentagon level defenses 466 00:25:13,840 --> 00:25:17,040 Speaker 1: sort of protect their assets in a simplified way. And 467 00:25:17,040 --> 00:25:19,919 Speaker 1: and you know, we're constantly from up We don't a 468 00:25:19,920 --> 00:25:22,200 Speaker 1: security company, but where we look at data as being 469 00:25:22,200 --> 00:25:24,679 Speaker 1: the lifeblood of the business and we do everything we 470 00:25:24,720 --> 00:25:27,920 Speaker 1: can in our technology to help customers manage that better, 471 00:25:28,000 --> 00:25:31,800 Speaker 1: protect that better. UM isolate keeps things better. Um, but 472 00:25:31,840 --> 00:25:34,639 Speaker 1: it's a it's a constant journey. Hey, Sanja, thank you 473 00:25:34,720 --> 00:25:36,959 Speaker 1: so much for joining us. We really appreciate you taking 474 00:25:37,040 --> 00:25:40,360 Speaker 1: the time. Sanjay Merchant Donnie, he's the CEO of Convolt 475 00:25:40,920 --> 00:25:44,560 Speaker 1: taking a look at companies data storing the data, are 476 00:25:44,560 --> 00:25:49,359 Speaker 1: retrieving the data when that data is lost in so clearly, Um, 477 00:25:49,440 --> 00:25:51,760 Speaker 1: that is becoming a bigger and bigger issue for most 478 00:25:51,760 --> 00:25:55,280 Speaker 1: companies here, particularly data sensitive companies. As more and more 479 00:25:55,359 --> 00:25:58,520 Speaker 1: work goes to the cloud. As we work more from home, 480 00:25:58,600 --> 00:26:01,879 Speaker 1: perhaps learn more from home, more data is being in 481 00:26:02,040 --> 00:26:04,840 Speaker 1: applications quite frankly, are being put up in the cloud, 482 00:26:04,840 --> 00:26:08,399 Speaker 1: and data security becomes a key issue. Thanks for listening 483 00:26:08,400 --> 00:26:11,880 Speaker 1: to the Bloomberg Markets podcast. You can subscribe and listen 484 00:26:11,920 --> 00:26:16,200 Speaker 1: to interviews with Apple Podcasts or whatever podcast platform you prefer. 485 00:26:16,560 --> 00:26:20,560 Speaker 1: I'm Matt Miller. I'm on Twitter at Matt Miller three. 486 00:26:21,000 --> 00:26:23,440 Speaker 1: Put on Fall Sweeney I'm on Twitter at pt Sweeney. 487 00:26:23,520 --> 00:26:26,159 Speaker 1: Before the podcast, you can always catch us worldwide at 488 00:26:26,160 --> 00:26:27,240 Speaker 1: Bloomberg Radio.