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Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm

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Speaker 1: Tim Stanevik. We're here every day bringing you the latest

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Speaker 1: news from the world's of business and finance, clus technology, politics, economics,

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Speaker 1: all harnessing the power of Business Week reporters and editors,

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Speaker 1: not to mention our journalists and analyst in more than

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Speaker 1: one twenty countries. You can download Bloomberg Business Week on iTunes, SoundCloud,

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Speaker 1: or Bloomberg dot com. You can also listen to our

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Speaker 1: radio show at two pm Eastern Time on Bloomberg Radio

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Speaker 1: or stream US live on YouTube and Bloomberg dot com.

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Speaker 1: It is one of our most word stories on the

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Speaker 1: Bloomberg Today. It's about the nationwide halt and airline flights

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Speaker 1: across the US this morning. This after the FA paused

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Speaker 1: takeoffs due to a system outage of a key flight system.

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Speaker 1: Airline shares is abigail mentioned are doing okay? But wait,

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Speaker 1: do we need to be worried? I gotta say I'm

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Speaker 1: a little worried when there's an f A a a system failure.

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Speaker 1: I mean, this shouldn't ever probably happen. With some perspective,

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Speaker 1: let's bring in Bloomberg's Creed Gupta. She's on the ground

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Speaker 1: at LaGuardia Airport in New York City along with Allen

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Speaker 1: leve and he's Aviation Safety and f A reporter at

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Speaker 1: Bloomberg News on the phone from Washington, D C. Creedy.

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Speaker 1: Let's kick it off with you. Looks pretty quiet, pretty

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Speaker 1: come behind you. What's the latest regarding the disruption this

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Speaker 1: morning and what actually caused the problem? Yeah, well it

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Speaker 1: is pretty quiet, and I have to say though if

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Speaker 1: you go to a different terminal you might see a

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Speaker 1: little bit more chaos. And remember this all really started

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Speaker 1: overnight when you did have, of course, the system wide

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Speaker 1: outage coming up at the f A. The system called

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Speaker 1: the No TAM system essentially the Notice to Air Mission system.

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Speaker 1: It tells things to personnel and to pilots, things like

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Speaker 1: runaway conditions, construction obstacles, bird hazards, even those are the

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Speaker 1: kind of things that they need to know to make

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Speaker 1: sure if a flight gets off the ground safely, as

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Speaker 1: able to ground safely as well. So essentially the absence

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Speaker 1: of that constant updating of information creates a pretty scary

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Speaker 1: environment to operate. So of course we did see as

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Speaker 1: a result six flight delays around the country. Of course,

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Speaker 1: grounding of all air planes for about two hours this

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Speaker 1: morning and about a thousand flight cancelations as well, something

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Speaker 1: that the likes of United Delta Southwest are still kind

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Speaker 1: of playing a little bit of catch up to. I

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Speaker 1: love and come on in here because you cover the

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Speaker 1: f A for us at Bloomberg News. Tell us everything

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Speaker 1: that we need to understand about the no TAMP system,

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Speaker 1: which I think to a lot of people probably hadn't

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Speaker 1: heard about it until today. Yeah, it's basically an advisory system.

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Speaker 1: The you know, the aviation system generally have to have

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Speaker 1: such a high reliability and high level of safety that

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Speaker 1: they want pilots to know every little detail in advance

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Speaker 1: before they fly to an airport. So if you're doing

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Speaker 1: maintenance on the lights at a runway, or let's say

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Speaker 1: the snow conditions are such that it's a slippery uh,

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Speaker 1: they'll put that in a notem uh. It Also, you know,

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Speaker 1: if they're launching a rocket into space in Florida, that

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Speaker 1: requires a clear out a lot of airspace, and so

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Speaker 1: they handled that as well in a notem Um. But

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Speaker 1: I do want to make one thing clear that the

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Speaker 1: system that guide airplanes, that keep them separated in the sky,

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Speaker 1: that allow air traffic controllers, to talk to pilots, etcetera.

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Speaker 1: None of those were affected. So this did not in

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Speaker 1: and of itself cause any safety issues that were aware of.

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Speaker 1: So so yeah, because I have to say, when I

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Speaker 1: first heard, I'm like, whoa, what is it? What is

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Speaker 1: this about? But even so, alan should we assume that

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Speaker 1: this shouldn't happen? Um? I think it's fair to say

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Speaker 1: that everyone from FA to the airlines would say that

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Speaker 1: this shouldn't happen. Um. There are quite a number of

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Speaker 1: questions that remained to be you know, you know, what

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Speaker 1: level of backup they had? Did the backup go down? Um?

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Speaker 1: They certainly have some backup, but was it an instantaneous

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Speaker 1: backup or did it take him an hour or two

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Speaker 1: to get the backup up and running? Um? You know,

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Speaker 1: a lot of that is just not clear yet. Hey, Creedy,

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Speaker 1: you've been there throughout the day, So give us an

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Speaker 1: idea how how things have shifted and if it seems like,

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Speaker 1: you know, travelers are still disrupted, because as we learned

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Speaker 1: very recently with Southwest, if there's a you know, widespread delay,

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Speaker 1: then things happen kind of like dominoes, and it takes

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Speaker 1: a long time for things to go back to normal.

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Speaker 1: Well's that domino effect that's really the worry here. The

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Speaker 1: idea that a lot of the airlines are kind of

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Speaker 1: assuring travelers that this is going to be something that

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Speaker 1: was going to end by nine am Eastern, then it

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Speaker 1: was going to end by noon. Then you actually had

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Speaker 1: a lot of the major transport hubs around the country

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Speaker 1: start to say, well, actually, we're going to need a

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Speaker 1: couple of hours to kind of play that element of

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Speaker 1: catch up. So now aly are still saying, well, look,

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Speaker 1: expect those delays, expect those cancelations, but it should be

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Speaker 1: done by the end of today. That is not necessarily

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Speaker 1: the case. Now. The thing to worry about here is

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Speaker 1: that does this kind of seep into tomorrow's flight schedule

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Speaker 1: as well. You've heard of that sentiment or at least

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Speaker 1: that worry coming from Delta, from Southwest and from United

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Speaker 1: as well. But once again, that seems to be the

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Speaker 1: big question, how do we even get here in the

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Speaker 1: first place. Helene Becker, count senior research analyst, told Bloomer

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Speaker 1: TV earlier that look, this is once again a function

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Speaker 1: of old technology that's going to take billions and billions

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Speaker 1: of dollars to renovate and we're just not there. Alan.

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Speaker 1: Is that something that that you see uh in your

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Speaker 1: reporting on the f A as well, that this is

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Speaker 1: a this is an issue of old technology that will

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Speaker 1: take significant investment. So the the f a A is

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Speaker 1: in the years long uh effort of upgrading its entire

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Speaker 1: air traffic system. And I have to say, generally, uh,

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Speaker 1: there've been glitches along the way more than but the

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Speaker 1: generally the system is far more modern than it was

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Speaker 1: ten fifteen years ago when that was a bigger concern.

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Speaker 1: And and it's generally been more reliable. And so you

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Speaker 1: know now that we use satellite systems to track planes

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Speaker 1: instead of radar, that was a huge switch that started

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Speaker 1: in UM, the computer systems that the air traffic controllers

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Speaker 1: used to follow aircraft are all relatively updated. UM. The

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Speaker 1: UM it remains to be seen. We're hearing kind of

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Speaker 1: contradictory information about this specific computer system that runs a

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Speaker 1: NOTEM program, whether it's new or not. UM. You know,

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Speaker 1: it clearly shouldn't happen, and we'll have to figure out

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Speaker 1: why uh later on. But but and you know, and

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Speaker 1: any time this happens, there's going to be huge calls

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Speaker 1: for change gen all that, But but I'd say my

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Speaker 1: big picture of you watching this over the past decade

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Speaker 1: or two, the f A systems overall have been modernized,

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Speaker 1: relatively speaking. Hey, just quickly got about a minute or

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Speaker 1: so left to both of you and Creedy. Let me

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Speaker 1: ask you first, Um, can we should we rule out

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Speaker 1: that this was a cyber attack? Well, that is what's

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Speaker 1: the Biden administration is saying. But then Peter Boud excuse me,

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Speaker 1: the Secretary of Transportation, came in later and spoken to

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Speaker 1: other outlets and said, well, look, we can't rule out

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Speaker 1: anything yet. They are creating a white scale investigation. So

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Speaker 1: no for now, but of course we have to stay tuned.

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Speaker 1: Frought date, Alan, what are you hearing on that front? Um,

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Speaker 1: the same thing, But I just point out that most

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Speaker 1: of the f A computers are kind of firewalled from

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Speaker 1: the normal types of ways that attackers might go after

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Speaker 1: a system, so the odds are probably lower. But I,

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Speaker 1: I mean, I would rule anything out at this point.

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Speaker 1: All right, Well, that kind of fit makes me feel better,

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Speaker 1: but I like everything to work, like he said, Carol,

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Speaker 1: Like Alan said. Nothing in terms of the way that

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Speaker 1: pilots communicate with each other or with air traffic and

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Speaker 1: trains around the ground. Yeah, that was a good thing,

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Speaker 1: all right. Allan Levin Aviation Safety and f A, a

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Speaker 1: reporter at Bloomberg News joining us on the phone from Washington,

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Speaker 1: d C. In a creaty group because she's been out

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Speaker 1: there at LaGuardia Airport, New York City. She's anchored markets

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Speaker 1: correspondent here at Bloomberg just following it. Airlines they're just

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Speaker 1: up shy of one percent here, so they're doing okay,

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Speaker 1: doing better than even the markets. On a day we

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Speaker 1: we're seeing a rally the S and P five hundred

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Speaker 1: at eight tenths of one percent. The nastack up one

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Speaker 1: point too. All right. You are listening in watching Bloomberg

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Speaker 1: Business Week on this Wednesday, Carol Master Tim Stanovic. This

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Speaker 1: is Bloomberg Radio. These sees Bloomberg Business Week with Carol

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Speaker 1: Messer and Tim Stanovic on Bloomberg Radio Newsia. Bloomberg Business

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Speaker 1: Week at newsstands tomorrow, some of the stories already on

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Speaker 1: the Bloomberg and online at Bloomberg dot com. Slash business Week.

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Speaker 1: It is the year ahead issue covering the major trends, disruptions,

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Speaker 1: breakthrough products, so much that are coming this year in

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Speaker 1: and it compliments next year's Bloomberg Live event and Davos

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Speaker 1: happening as the World Economic Forum hosts its annual meeting. There.

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Speaker 1: One section in the Year Ahead issue was all about

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Speaker 1: the consumer, everything from starbucks unhappy New Year to Hollywood's

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Speaker 1: comeback here and more with a round up. Here is

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Speaker 1: a Bloomberg Business Week Assistant Managing Editor Jim Ellis. He's

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Speaker 1: right here in our Bloomberg Interactive Broker's studio. Jim, good

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Speaker 1: to see you. Um, the Year Ahead here we are here.

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Speaker 1: We didn't think it would happen. He made it here.

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Speaker 1: Inflation is still here. And there's some stuff that we

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Speaker 1: you know, some themes that we covered a little bit

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Speaker 1: last year. Uh that kind of gave us a preview

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Speaker 1: of what to think about this year. I think to

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Speaker 1: the stories about unionization and Starbucks. So before we get

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Speaker 1: to that, though, UM, talk about like how you chose

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Speaker 1: the stories. Well, actually, one of the things that I

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Speaker 1: wanted to do this year was to uh sort of

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Speaker 1: you know, sort of capture how things are different from

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Speaker 1: the previous year. And the biggest is that, you know,

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Speaker 1: while the pandemic sort of defined last year, you know,

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Speaker 1: how our sort of come back from the pandemic. This year,

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Speaker 1: um you know, is going to be defined more about

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Speaker 1: how consumers sort of you know, what's the new normal

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Speaker 1: for consumers in other words, you know, lots of things changed.

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Speaker 1: You obviously returned to work, you know, it's been an issue,

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Speaker 1: but also how people want to shop, how people want

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Speaker 1: to consume, you know, what people are willing to spend on,

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Speaker 1: and the way the consumer behaves is a lot different

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Speaker 1: than than and so we want to capture that. And

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Speaker 1: so we tried to sort of take a look at

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Speaker 1: a number of areas. You know, one I was obviously entertained.

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Speaker 1: It was travel because it's something I love, but it's

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Speaker 1: also something that was really really knocked during the pandemic.

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Speaker 1: So I knew that was something we wanted to get into.

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Speaker 1: And also there were a lot of management shifts that

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Speaker 1: happened over the uh pandemic period, and a lot of

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Speaker 1: it was because of the way the consumers were changing

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Speaker 1: what they wanted to do a good A good example

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Speaker 1: that was Starbucks simply because China was a big piece

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Speaker 1: of its business. China was going to do, um, you know,

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Speaker 1: not behave this year the way it did before. And

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Speaker 1: also they were involved in a unionization drive that really

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Speaker 1: picked up steam, you know, over the course of the pandemic,

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Speaker 1: so that I knew it wanted that in there. So

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Speaker 1: I went sort of just trying to choose things that

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Speaker 1: I thought if I was a consumer, what would I

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Speaker 1: care about? Now? I love that you guys say when

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Speaker 1: it comes to starbuck in the section Starbucks, excuse me,

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Speaker 1: could really use some caffeine this year, And well they're

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Speaker 1: getting it in the likes of bringing back Howard Schultz,

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Speaker 1: so connected obviously with this company. It's like the old

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Speaker 1: leaders are all coming back Disney Tiger, but tell us, um,

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Speaker 1: they've also got what another They've got a new CEO

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Speaker 1: who's coming in, Um, who will work with Howard Schultz.

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Speaker 1: We'll see how that works out. But I think, oh yeah, so, um,

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Speaker 1: you know when he's coming. He was the former CEO

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Speaker 1: of rek It. And the thing is that, you know,

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Speaker 1: he was very he was successful there. The problem is

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Speaker 1: that it's a very different type of business. This is

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Speaker 1: a this is a true consumer business that sells and

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Speaker 1: you know, sort of sells food and drink in restaurants,

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Speaker 1: regor sells you know, condoms and and other things. But um,

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Speaker 1: it's a sanitizing, sanitizing, and yeah, but I mean it's

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Speaker 1: consumer products, but they're not the same thing as selling

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Speaker 1: at retail, and so that's the real challenge. He's gonna

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Speaker 1: have to learn that job at the same time that

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Speaker 1: it has a big, big challenge in unionization of its stores.

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Speaker 1: And also China, which is its second most important market,

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Speaker 1: is still not back to normal. That's also supposedly the

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Speaker 1: big growth market of Starbucks, and they hope that, you know,

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Speaker 1: they're gonna have nine thousand stores there or something in

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Speaker 1: a few years. You know, that's gonna be a real lift,

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Speaker 1: given that China is still not fully back from the pandemic,

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Speaker 1: and this guy has to figure out how to pull

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Speaker 1: all this off at the same time that his predecessor,

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Speaker 1: Howard Schultz, is still remaining on the board. And often founders,

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Speaker 1: you know, sort of they tend to be sort of

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Speaker 1: hands on, and especially a founder like Schultz, who has already,

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Speaker 1: you know, had the CEO's job three times. He's already

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Speaker 1: gotten rid of two people before. It's a good point. Hey,

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Speaker 1: I gotta talk planes because I know Tim's really into it,

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Speaker 1: but I'm just thinking, you know, you mentioned the importance

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Speaker 1: of China China. Obviously in planes that's important, I mean

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Speaker 1: jumbo jets important kind of, I feel like, to all

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Speaker 1: the carriers. Well, but we previously thought they were no

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Speaker 1: longer important. He said, Oh my god, jumbo jets they

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Speaker 1: got four engines. They you know, they gobble up all

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Speaker 1: this fuel. So therefore we moved beyond that. And so

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Speaker 1: we saw all these new sort of what they call

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Speaker 1: new generation planes, the UH seven seven have an X,

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Speaker 1: the A three fifty I mean planes, and the Dreamliner

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Speaker 1: planes that were supposedly able to do with two engines

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Speaker 1: everything that the old jumbos like the seven forties seven

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Speaker 1: and the double decker A three eighty could do. And

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Speaker 1: the problem is that, um, you know, we've sort of

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Speaker 1: retired a lot of those planes, and now demand is

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Speaker 1: jumped back and they say like, oh my god, we

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Speaker 1: need we need big planes, and we need big planes

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Speaker 1: with big first classes. And he say, like, why does

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Speaker 1: that matter that much? Well, it matters because the first

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Speaker 1: class seat can sell for seven thousand dollars, and that's

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Speaker 1: one way that's not around trip, and you make a

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Speaker 1: lot of money in the front of the plane. People

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Speaker 1: always talk about business class, but you started forget that

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Speaker 1: for a lot of long haul careers. That's still the

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Speaker 1: first class business, and they've been surprised at how fast

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Speaker 1: that business has come back, so they want to get

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Speaker 1: all these planes that have a lot of first class

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Speaker 1: seats back up in the air. What's really surprising to

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Speaker 1: me is that it's not necessarily a short term thing.

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Speaker 1: I mean, you guys write the Thai Airways, which in

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Speaker 1: that it planned to phase out those double decker Airbus

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Speaker 1: A three eighties. They're pulling a return of the A

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Speaker 1: three eighty, but not until only four Well, part of

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Speaker 1: it is that a lot of people parked their large airplanes.

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Speaker 1: They thought they were going to retire them, so they

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Speaker 1: parked about in the desert someplace. They've know a lot

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Speaker 1: of them just have not kept up with the planes,

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Speaker 1: and so it takes months for these things to come back,

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Speaker 1: and if you really haven't taken care of it, it

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Speaker 1: could take you a year because often have to be

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Speaker 1: refurbished and they're putting in new interiors. A lot of

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Speaker 1: these planes have not been well kept from the pandemic. Alright,

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Speaker 1: plane skipping trains, automobiles, the used car market man that

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Speaker 1: was on fire during the pandemic and right after and

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Speaker 1: now it feels like not so much. Yeah, I mean,

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Speaker 1: used cars were a real sort of boom time during

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Speaker 1: the pandemic. What happened was that because the new car

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Speaker 1: business UM was really constrained because of chips, because of

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Speaker 1: the shutdowns and auto plants and different parts of the world,

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Speaker 1: UM prices went up on new cars because there was

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Speaker 1: no you know, there was no supply. And what that

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Speaker 1: meant was a lot of people couldn't afford new cars

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Speaker 1: and so they said, okay, I'll buy something on the

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Speaker 1: US line, and that sent used core prices soaring. The

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Speaker 1: problem for the used car business now is that in

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Speaker 1: the last you know, six months, you know, new cars

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Speaker 1: have come back. You can get them on the lots again.

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Speaker 1: You don't have these long waiting periods, and so the

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Speaker 1: prices of youth have dropped. And what that means is

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Speaker 1: for people like CarMax and for car Vanna, people's business

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Speaker 1: is heavily skewed toward that. You know, they suddenly are

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Speaker 1: you know, they don't have the demand, but also the

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Speaker 1: values of the cars that they have have in stock

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Speaker 1: are dropping. It's such a one eight. It's a great story.

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Speaker 1: There's more in the magazine and also online. There's also

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Speaker 1: another story about Hollywood hoping for a return to the

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Speaker 1: old normal, so we highly recommend you check it out

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Speaker 1: in the new Year Ahead issue. Jim Ellis, thank you

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Speaker 1: so much, Assistant Managing editor of Bloomberg Business Week. Here

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Speaker 1: in our interactive broker studio, you're listening and watching Bloomberg

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Speaker 1: Business Week. That new issue out on newsstands, online at

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Speaker 1: Bloomberg dot com and always on the Bloomberg terminal. This

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Speaker 1: is Bloomberg Radio. You're listening to Bloomberg Business Week with

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Speaker 1: Carol mess Here and Tim Stenovic on Bloomberg Radio. Well,

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Speaker 1: we keep hearing from many of our guests about how

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Speaker 1: investors need to keep an eye on the bond market

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Speaker 1: for where the economy, US economy and Fed policy are going.

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Speaker 1: Bond market trading often like the Fed is getting ready

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Speaker 1: to stop raising rates and possibly even dear we say pivot,

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Speaker 1: meaning cut rates. But monitoring and writing about it all NonStop.

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Speaker 1: Is our next guest. She's a member of the family. Yeah,

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Speaker 1: Bloomberg News Chief correspondent for Global macro Markets, Liz McCormick

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Speaker 1: is back with us. She's Her story today is among

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Speaker 1: the most rot on the Bloomberg terminal, it taps into

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Speaker 1: the dreaded FED dot plot and why it's confusing markets.

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Speaker 1: Liz joins us via zoom from New York City. Liz

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Speaker 1: always good to chat with you, especially when it comes

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Speaker 1: to everything you know related to dot plots and what

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Speaker 1: the Fed is going to do with rates. But what's

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Speaker 1: the mixed message here or is there not even a

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Speaker 1: mixed message? And traders are just kind of like grappling

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Speaker 1: onto whatever positive news they can. Well, I guess it's

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Speaker 1: like they're grappling onto some of the bad news right

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Speaker 1: that the economy is slowing down. The good news, I

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Speaker 1: guess as they think inflation is peaked. But but yeah,

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Speaker 1: it's like the FED keeps saying, you know, Craig and

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Speaker 1: I wrote that story. We're saying, it's like a total

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Speaker 1: full court Fed press, like we are not going to

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Speaker 1: cut rates. We have more work to do. Look at

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Speaker 1: our dot plot, which is they're kind of projections for

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Speaker 1: rates that show no cuts this year, and the market

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Speaker 1: just saying, okay, whatever, we're we're doing what we think.

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Speaker 1: And you know, I mean literally last week in the

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Speaker 1: minutes they said we're not going to cut rates totally.

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Speaker 1: That's what I'm saying it is like a clear full

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Speaker 1: court press. But I think you know, that's why I

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Speaker 1: mean all joking aside. Craig and I've been around maybe

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Speaker 1: too long, but we thought, you know, we remember I said.

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Speaker 1: Part of the problem is that the FED officials themselves

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Speaker 1: in the past have said, I kind of don't focus

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Speaker 1: too much on the dots. It's just our forecast. It's

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Speaker 1: not a projection for sure policy. And now they keep

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Speaker 1: you know, of course they're saying things too, but they're

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Speaker 1: they're also pointing to like our dot plot is a

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Speaker 1: good projection of where we're going. Um, So I think

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Speaker 1: markets are kind of jaded, like number one, we've heard

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Speaker 1: you downplay these before, and number two like all economists.

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Speaker 1: But the FED has kind of been really wrong footed

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Speaker 1: in some of these, not just the projections on the

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Speaker 1: dot plants, some of their economic forecast where they saw inflation,

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Speaker 1: of course didn't pan out. So I think these investors,

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Speaker 1: these traders are a little bit like you know, I've

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Speaker 1: heard this before. I'm seeing signs that we have a

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Speaker 1: slowdown coming, I think, and maybe they're wrong to think

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Speaker 1: that the FED ultimately is going to have to cater

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Speaker 1: to the economy, which is like history. But as you

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Speaker 1: guys have talked before, if inflation stays too sticky, the

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Speaker 1: FED has no choice. They will have to stay high.

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Speaker 1: So it's gonna be interesting to see, like we talk

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Speaker 1: in a six months time, what what's really panned out? Right?

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Speaker 1: I feel like Lizzie, like you hit it. There's such

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Speaker 1: diversion between what we're hearing from the ED saying they're

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Speaker 1: going to do, no doubt about the message, and then

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Speaker 1: what you see plays ob certainly in the bond market

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Speaker 1: they think, you know, the FED is gonna you know,

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Speaker 1: and I don't know what how much of it is?

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Speaker 1: Like you said, hey, Fed, you've gotten a lot wrong.

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Speaker 1: We're the bond market. We're figuring this out and it

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Speaker 1: will be interesting. How much do you think tomorrow's CPI

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Speaker 1: report could help the bond you know, could could change

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Speaker 1: that or be reflected in the bond market about whether

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Speaker 1: or not there there's more of a buy into the

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Speaker 1: FED and what it's saying and the dot plot. Well,

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Speaker 1: at first, I want to make a joke. I heard

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Speaker 1: Doug saying it's the day before cp I. I I was

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Speaker 1: waiting for like the day day before Christmas exactly. That

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Speaker 1: would be more fun. But no, I think I think Carol,

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Speaker 1: you're right, cp I, you know, could change this kind

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Speaker 1: of I call it the schism between the two. If

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Speaker 1: cp I, first of all, if it's it proves a

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Speaker 1: surprising strong number, I think the market is going to think,

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Speaker 1: oh yeah, maybe the Fed is going to have to

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Speaker 1: do what they're saying. So you might see yields pick up.

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Speaker 1: Maybe we'll see some of that pricing and the derivative market,

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Speaker 1: you know, be reduced saying they'll price out the cuts,

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Speaker 1: but may they may trim down how much um And

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Speaker 1: if it's an uber soft number, then maybe the bond

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Speaker 1: market just doubles down. You know. The Fed officials seem

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Speaker 1: to be which seems fair if you look at history,

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Speaker 1: you know, they they've noted pastimes in and like we

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Speaker 1: all know in the seventies and the eighties when they

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Speaker 1: say policy, if it moved to the reverse course too fast,

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Speaker 1: they had to come back and do more tightening. So

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Speaker 1: I think they don't want to make that mistake. Um.

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Speaker 1: But in the labor market at you know, as we've

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Speaker 1: looked at with payroll last week, wages were down, but

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Speaker 1: it hasn't rolled over, and the Fed seems to think

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Speaker 1: we not that they want to put people out of work,

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Speaker 1: but sadly that's part of what's going to have to happen,

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Speaker 1: is that we have just too much demand for the

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Speaker 1: labor that's out there. So I just think cp I

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Speaker 1: may be telling tomorrow, let's see what happens, right, Hey, Liz,

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Speaker 1: you know, going deeper into the markets, which is what

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Speaker 1: we love about you know you're reporting is you understand

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Speaker 1: this market so well. We do it often at you know,

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Speaker 1: the headline level ale and so and so forth, but

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Speaker 1: you dig deeper and in your story yours and Craig

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Speaker 1: tourists as you talk about primary dealers in US treasuries,

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Speaker 1: you know, and they're making of their official forecast as

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Speaker 1: a group, they are not pricing in rate cuts. And

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Speaker 1: that was a servey by the New York Fed. Right

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Speaker 1: is that an important discussion to be having right now

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Speaker 1: ahead of CPI. Yeah, I think so, because it's interesting

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Speaker 1: and I think it was Matthew Hornback of Morgae Santon

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Speaker 1: I've heard him mentioned this as well, that okay, there's

428
00:22:29,560 --> 00:22:31,800
Speaker 1: the market pricing, there's the FED, and then there's a

429
00:22:31,880 --> 00:22:34,359
Speaker 1: lot of forecasts, which you know, a lot of the

430
00:22:34,359 --> 00:22:38,320
Speaker 1: primary dealer economists are also saying no cuts this year, right,

431
00:22:38,359 --> 00:22:41,560
Speaker 1: I mean some are saying cuts by maybe December UM.

432
00:22:41,640 --> 00:22:45,119
Speaker 1: But I think maybe that primary dealer servey that, like

433
00:22:45,160 --> 00:22:47,760
Speaker 1: you said, the FED took itself, is maybe giving the

434
00:22:47,800 --> 00:22:50,920
Speaker 1: FED solace to say, you know, because of course, Carol,

435
00:22:50,960 --> 00:22:54,919
Speaker 1: there's like optionality into these pricing of derivatives, you know,

436
00:22:55,000 --> 00:22:57,880
Speaker 1: like I guess people aren't doing their job as these

437
00:22:57,880 --> 00:23:00,400
Speaker 1: traders if they're not saying, well, we were hanging out.

438
00:23:00,480 --> 00:23:03,520
Speaker 1: That's how you price these things. Scenario analysis, we could

439
00:23:03,600 --> 00:23:05,840
Speaker 1: end up with a stronger economy, FED has to go further.

440
00:23:05,920 --> 00:23:08,080
Speaker 1: We could end up with the economy totally falls out

441
00:23:08,119 --> 00:23:10,040
Speaker 1: of bed and we have a terrible recession. They cut

442
00:23:10,040 --> 00:23:13,200
Speaker 1: a lot, So some of that is in this pricing.

443
00:23:13,280 --> 00:23:16,280
Speaker 1: But I think that survey does, you know, show that, hey,

444
00:23:16,320 --> 00:23:19,120
Speaker 1: there's a lot of economists that lean on the FED side.

445
00:23:19,359 --> 00:23:22,720
Speaker 1: And that's why I think, honestly, it's a walk card

446
00:23:22,760 --> 00:23:24,560
Speaker 1: to be honest. Before I got out with you guys,

447
00:23:24,760 --> 00:23:27,280
Speaker 1: and I always kind of look at what is Anna

448
00:23:27,320 --> 00:23:33,000
Speaker 1: Wong saying these days. She says the same thing, go

449
00:23:33,080 --> 00:23:35,640
Speaker 1: to over five percent. I think about five she's got

450
00:23:35,640 --> 00:23:38,440
Speaker 1: three more basis point heights and then she says no

451
00:23:38,600 --> 00:23:41,399
Speaker 1: cuts this year. So I'm like, okay, annimals on the

452
00:23:41,440 --> 00:23:43,960
Speaker 1: FED side. So that's you know, that's a good support

453
00:23:44,040 --> 00:23:46,280
Speaker 1: for them. Well, first, this is what makes your job fun,

454
00:23:46,320 --> 00:23:48,159
Speaker 1: I'm guessing is that you know, everybody sort of has

455
00:23:48,160 --> 00:23:50,720
Speaker 1: a different idea. But the other part of this, too, Liz,

456
00:23:51,119 --> 00:23:54,359
Speaker 1: is that you know, the FED only knows what we

457
00:23:54,480 --> 00:23:57,520
Speaker 1: know in terms of data, and they've said many times

458
00:23:57,520 --> 00:24:00,680
Speaker 1: that their data dependent and you know, since the last meeting,

459
00:24:00,680 --> 00:24:04,840
Speaker 1: we got uh jobs report that showed that wage growth

460
00:24:04,880 --> 00:24:09,560
Speaker 1: was moderating, and investors certainly latched onto that. But each

461
00:24:09,560 --> 00:24:12,399
Speaker 1: piece of data kind of gives them a different idea

462
00:24:12,560 --> 00:24:14,640
Speaker 1: of what their next move is going to be. And

463
00:24:14,640 --> 00:24:17,080
Speaker 1: and maybe indeed we are seeing some of the core

464
00:24:17,160 --> 00:24:20,000
Speaker 1: issues that j. Powell and the FED are concerned about

465
00:24:20,320 --> 00:24:23,879
Speaker 1: starting to alleviate a little bit right, And of course

466
00:24:24,000 --> 00:24:27,360
Speaker 1: they they have they should be data pendant, like you said,

467
00:24:27,359 --> 00:24:29,320
Speaker 1: they said they are. And I was talking to someone

468
00:24:29,359 --> 00:24:30,920
Speaker 1: I won't say who yet because I'm trying to write

469
00:24:30,960 --> 00:24:33,240
Speaker 1: a story, but a long time investor today and I

470
00:24:33,359 --> 00:24:35,560
Speaker 1: was saying asking him the same thing, do you think

471
00:24:35,600 --> 00:24:37,600
Speaker 1: the FED is going to really do what they're saying,

472
00:24:37,600 --> 00:24:40,080
Speaker 1: and he said, I think now that's what the FED

473
00:24:40,160 --> 00:24:42,200
Speaker 1: thinks they're going to do given the data they have,

474
00:24:42,840 --> 00:24:46,280
Speaker 1: and of course if it's six months things changed, they're

475
00:24:46,280 --> 00:24:48,400
Speaker 1: going to have to adjust. So and I think that's

476
00:24:48,400 --> 00:24:50,560
Speaker 1: why the market that they're like, well, we have to

477
00:24:50,800 --> 00:24:53,119
Speaker 1: kind of think ahead of you, you know, especially the

478
00:24:53,160 --> 00:24:55,359
Speaker 1: bond market. You know, people always say, hey, look at

479
00:24:55,359 --> 00:24:58,119
Speaker 1: where the long term meals are. That's a signal of

480
00:24:58,200 --> 00:25:01,000
Speaker 1: where investors think the accou to me is going, not

481
00:25:01,119 --> 00:25:03,240
Speaker 1: just where it is right. So long term rates have

482
00:25:03,320 --> 00:25:05,959
Speaker 1: fallen a lot in the last couple of months, and

483
00:25:06,000 --> 00:25:08,240
Speaker 1: I think the market is thinking, you know, the curve

484
00:25:08,320 --> 00:25:11,720
Speaker 1: is very inverted that you know, whether you know the

485
00:25:11,760 --> 00:25:15,119
Speaker 1: FED cuts sooner or later, that this recession is coming,

486
00:25:15,160 --> 00:25:17,359
Speaker 1: we're gonna have a slowdown, and that this you know,

487
00:25:17,359 --> 00:25:19,680
Speaker 1: they're going to have to pivot eventually this year. So

488
00:25:20,119 --> 00:25:22,440
Speaker 1: again it's gonna be the million dollar question, like does

489
00:25:22,480 --> 00:25:26,960
Speaker 1: anyone win? That? Was it? No? No, still a chance

490
00:25:27,000 --> 00:25:30,080
Speaker 1: for us. List, there's still a chance. List just quickly

491
00:25:30,080 --> 00:25:34,119
Speaker 1: about thirty seconds here is it hardest in terms of

492
00:25:34,160 --> 00:25:36,960
Speaker 1: doing FED policy and for the market's the bond market

493
00:25:37,240 --> 00:25:41,000
Speaker 1: to understand it. When the FED is getting ready to stop.

494
00:25:42,520 --> 00:25:44,720
Speaker 1: Well that's what Yeah, a woman, an investor in my

495
00:25:44,800 --> 00:25:46,880
Speaker 1: story said, and I think she's right. I mean, it's

496
00:25:46,920 --> 00:25:49,720
Speaker 1: the inflection points. And I'm remembering my old calculus or

497
00:25:49,720 --> 00:25:52,000
Speaker 1: whatever I used to know. But you know that even

498
00:25:52,040 --> 00:25:54,600
Speaker 1: for the FED, it's very hard. It's it makes sense

499
00:25:54,640 --> 00:25:56,520
Speaker 1: like when you're on a pivotal change, when you're on

500
00:25:56,560 --> 00:25:59,119
Speaker 1: a glide path of you know, you're easy easy easing,

501
00:25:59,200 --> 00:26:02,000
Speaker 1: that's like what you're doing, or or the vice versa,

502
00:26:02,040 --> 00:26:04,080
Speaker 1: your tightening like they have been. But I think it's

503
00:26:04,080 --> 00:26:07,119
Speaker 1: the it's the inflection points, you know, and and history

504
00:26:07,160 --> 00:26:09,359
Speaker 1: has shown that that's where they kind of fumble a little.

505
00:26:09,400 --> 00:26:10,879
Speaker 1: I would say, you know, to be fair to them,

506
00:26:10,920 --> 00:26:13,200
Speaker 1: A lot of people do. It's you know, people called

507
00:26:13,320 --> 00:26:15,879
Speaker 1: the end of the bond bear market, you know, or

508
00:26:15,920 --> 00:26:18,280
Speaker 1: a bull market years before it ever happened, right, and

509
00:26:18,280 --> 00:26:20,359
Speaker 1: then finally we got your yields go up. So I

510
00:26:20,400 --> 00:26:22,679
Speaker 1: try to be fair, but I think, yeah, history does

511
00:26:22,760 --> 00:26:25,080
Speaker 1: show that they have a kind of worst track record

512
00:26:25,119 --> 00:26:30,040
Speaker 1: at inflection points. Yeah, sorry, FED, Liz, thank you, Thank you.

513
00:26:30,119 --> 00:26:33,200
Speaker 1: Liz McCormick's she's chief correspondent for Global Macro Market's APT

514
00:26:33,200 --> 00:26:36,919
Speaker 1: Bloomberg News. Her reporting is always a must read. This

515
00:26:36,960 --> 00:26:39,920
Speaker 1: story by Liz along with Craig tourists and of course

516
00:26:40,000 --> 00:26:42,159
Speaker 1: Liz joining us via zoom from New York City. I mean,

517
00:26:42,200 --> 00:26:44,639
Speaker 1: we'll see what CPI does and how it changes market

518
00:26:44,720 --> 00:26:46,960
Speaker 1: sentiment if it comes in a little hot. I guess

519
00:26:46,960 --> 00:26:49,000
Speaker 1: the point is, like we talked with Abigail though, do

520
00:26:49,119 --> 00:26:51,520
Speaker 1: we look at you know, trend or a month over

521
00:26:51,600 --> 00:26:54,080
Speaker 1: month or do we have to start thinking about where

522
00:26:54,080 --> 00:26:55,840
Speaker 1: it was a year ago. That's a good point. At

523
00:26:55,880 --> 00:26:59,480
Speaker 1: six point five is the number that's expected year over year,

524
00:26:59,760 --> 00:27:02,679
Speaker 1: um until over a month. Uh, it's supposed to be

525
00:27:03,000 --> 00:27:06,160
Speaker 1: negative one tenth of one percent. Yeah, so interesting. We'll

526
00:27:06,440 --> 00:27:14,960
Speaker 1: certainly know in less than twenty four hours time journal. Yeah,

527
00:27:15,040 --> 00:27:21,600
Speaker 1: but you let me drive? No, no, no, please, ravels.

528
00:27:22,640 --> 00:27:31,000
Speaker 1: I want to drive. It's a good question. Is the

529
00:27:31,320 --> 00:27:37,399
Speaker 1: ride to the closed up on Bluebird Radio? All right, folks,

530
00:27:37,480 --> 00:27:40,600
Speaker 1: just about seventeen minutes left in today's trading session, getting

531
00:27:40,600 --> 00:27:43,160
Speaker 1: ready to wrap up the Wednesday trade US for equities,

532
00:27:43,200 --> 00:27:45,000
Speaker 1: as you heard from Doug, just coming off their highs

533
00:27:45,000 --> 00:27:47,320
Speaker 1: of the session, Tech leading the way with about a

534
00:27:47,359 --> 00:27:49,720
Speaker 1: one point four percent gain on the Nasdaq one hundred

535
00:27:49,760 --> 00:27:53,160
Speaker 1: in yields. Keeping an eye on the treasury trade ahead

536
00:27:53,160 --> 00:27:56,520
Speaker 1: of tomorrow's CPI report, that ten year note still at

537
00:27:56,560 --> 00:27:59,280
Speaker 1: about three fifty four two year note with the yield

538
00:27:59,280 --> 00:28:01,280
Speaker 1: of for twenty one, So curious to see what our

539
00:28:01,320 --> 00:28:03,959
Speaker 1: NEXTUS has to say about where you can find some

540
00:28:04,000 --> 00:28:07,280
Speaker 1: opportunities for that, We turned to Austin Graf, launching his

541
00:28:07,320 --> 00:28:10,199
Speaker 1: own investment management firm late last year. He's founder and

542
00:28:10,200 --> 00:28:12,960
Speaker 1: a c I O at Opal Capital. Austin joins us

543
00:28:12,960 --> 00:28:15,679
Speaker 1: on the phone from book of Ratana, Florida. Austin, how

544
00:28:15,720 --> 00:28:18,920
Speaker 1: are you good? Thanks? How are you Tim? Yeah, we're

545
00:28:18,920 --> 00:28:21,040
Speaker 1: doing pretty well. Thank you. Um, So, give us an

546
00:28:21,080 --> 00:28:23,119
Speaker 1: idea of what you're seeing when you look out at

547
00:28:23,160 --> 00:28:25,720
Speaker 1: the markets right now, because investors are certainly optimistic ahead

548
00:28:25,720 --> 00:28:29,520
Speaker 1: of CPI tomorrow. Yeah, it's kind of interesting right now.

549
00:28:29,680 --> 00:28:32,560
Speaker 1: It seems like kind of in the short term, the

550
00:28:32,560 --> 00:28:36,160
Speaker 1: markets are really swinging with each new economic data point

551
00:28:36,200 --> 00:28:38,480
Speaker 1: that comes out. But we think kind of if you

552
00:28:38,560 --> 00:28:40,760
Speaker 1: zoom out a little bit, the market will end up

553
00:28:40,840 --> 00:28:45,560
Speaker 1: kind of falling in line with fundamentals and valuations. Um.

554
00:28:45,600 --> 00:28:48,280
Speaker 1: So we're not really sure that investors should jump on

555
00:28:48,320 --> 00:28:50,760
Speaker 1: board with some of these kind of rallies in the

556
00:28:50,800 --> 00:28:54,560
Speaker 1: short term, we think they could be kind of kind

557
00:28:54,560 --> 00:28:58,920
Speaker 1: of false starts here. I do wonder, you know, when

558
00:28:58,920 --> 00:29:01,800
Speaker 1: you look at and try to get a handle on

559
00:29:02,200 --> 00:29:03,880
Speaker 1: kind of where we go. I mean, there's a lot

560
00:29:03,920 --> 00:29:05,640
Speaker 1: of questions still up in the air. There's a lot

561
00:29:05,640 --> 00:29:07,920
Speaker 1: of folks saying first half is going to be one way,

562
00:29:08,000 --> 00:29:10,640
Speaker 1: second half is going to be another way. Um. But

563
00:29:10,760 --> 00:29:13,880
Speaker 1: having said that, is there any clear consensus at least

564
00:29:13,920 --> 00:29:16,520
Speaker 1: in your thinking when it comes to an asset class

565
00:29:16,560 --> 00:29:18,600
Speaker 1: that maybe makes a lot of sense. Could it be currencies,

566
00:29:18,600 --> 00:29:20,520
Speaker 1: Could it be uh, I feel like at the equities,

567
00:29:20,520 --> 00:29:23,560
Speaker 1: could be emerging markets. Could it be bonds over equities,

568
00:29:23,560 --> 00:29:27,160
Speaker 1: Could it be going back to, you know, the historical

569
00:29:27,320 --> 00:29:31,840
Speaker 1: play of a balanced portfolio. What is it? Yeah, I

570
00:29:31,840 --> 00:29:34,440
Speaker 1: think it does make sense to have a balanced portfolio,

571
00:29:34,520 --> 00:29:38,000
Speaker 1: just because in the current market where you see kind

572
00:29:38,000 --> 00:29:42,200
Speaker 1: of expectations at two ends of the spectrum, especially if

573
00:29:42,240 --> 00:29:45,240
Speaker 1: you look at the interest rate perspective. Right now, you've

574
00:29:45,240 --> 00:29:47,760
Speaker 1: got the market kind of assuming the Fed's going to

575
00:29:47,840 --> 00:29:50,280
Speaker 1: have to lay off and start reducing rights at the

576
00:29:50,360 --> 00:29:52,560
Speaker 1: end of the year, while the Fed's trying to keep

577
00:29:52,560 --> 00:29:56,480
Speaker 1: a relatively hawkish tone. Um. If you're if you're going

578
00:29:56,560 --> 00:29:59,280
Speaker 1: to play one end of the spectrum there and you're wrong,

579
00:30:00,000 --> 00:30:02,760
Speaker 1: it could be pretty painful for investors. So we think,

580
00:30:03,040 --> 00:30:05,560
Speaker 1: you know, the ultimate outcome is likely to be somewhere

581
00:30:05,680 --> 00:30:08,920
Speaker 1: in the middle. So it makes sense to maintain a

582
00:30:08,960 --> 00:30:13,200
Speaker 1: relatively balanced portfolio um and not go too far in

583
00:30:13,400 --> 00:30:16,120
Speaker 1: one direction or the other. Austin, I want to talk

584
00:30:16,120 --> 00:30:18,320
Speaker 1: about some of the companies that you've got your eye

585
00:30:18,320 --> 00:30:22,440
Speaker 1: on right now, because you did say that you know,

586
00:30:22,520 --> 00:30:24,800
Speaker 1: these rallies that we're seeing right now could be false starts.

587
00:30:24,840 --> 00:30:27,360
Speaker 1: Does that mean that, But that still means that you know,

588
00:30:27,480 --> 00:30:30,360
Speaker 1: you should, you know, get into the companies that that

589
00:30:30,360 --> 00:30:32,320
Speaker 1: that you're picking right now, including x On Mobile. You

590
00:30:32,320 --> 00:30:34,320
Speaker 1: still think there's a there's room for x On Mobile

591
00:30:34,320 --> 00:30:37,720
Speaker 1: to run. Yeah, we think that there's still quite a

592
00:30:37,760 --> 00:30:40,480
Speaker 1: bit of opportunity in x On. It's it's a relatively

593
00:30:40,560 --> 00:30:42,840
Speaker 1: high quality name. And you know, I think a lot

594
00:30:42,880 --> 00:30:45,720
Speaker 1: of people are looking at Energy over the last called

595
00:30:45,760 --> 00:30:49,640
Speaker 1: twelve to eighteen months and saying it's run so far already,

596
00:30:50,240 --> 00:30:53,280
Speaker 1: But if you look back five years, Energy is not

597
00:30:53,280 --> 00:30:56,600
Speaker 1: anywhere near where it used to be. The other side

598
00:30:56,640 --> 00:30:59,480
Speaker 1: of the argument is that you know, we're transitioning to

599
00:31:00,160 --> 00:31:03,520
Speaker 1: a green economy and these companies are no longer going

600
00:31:03,560 --> 00:31:06,200
Speaker 1: to be relevant. We just don't think that that's the

601
00:31:06,280 --> 00:31:09,240
Speaker 1: case in the kind of intermediate term. We think over

602
00:31:09,280 --> 00:31:12,200
Speaker 1: the next over decades, you know, that might be, I

603
00:31:12,480 --> 00:31:15,800
Speaker 1: might be the case, but um, between now and you know,

604
00:31:15,840 --> 00:31:18,600
Speaker 1: the next thirty or forty years, we think these energy

605
00:31:18,600 --> 00:31:26,000
Speaker 1: companies are extremely relevant, um with less. That's a long runway. Well,

606
00:31:26,040 --> 00:31:27,520
Speaker 1: if you look at the if you look at the

607
00:31:27,560 --> 00:31:33,440
Speaker 1: demand for oil and the ability for alternatives or renewables

608
00:31:33,480 --> 00:31:37,520
Speaker 1: to offset the the demand that is required for oil,

609
00:31:37,680 --> 00:31:39,880
Speaker 1: it's likely going to take a long time for the

610
00:31:39,920 --> 00:31:43,560
Speaker 1: trend to revert. So we think that the marketabile ahead

611
00:31:43,600 --> 00:31:48,280
Speaker 1: of itself and embedding on some of these renewable opportunities

612
00:31:48,280 --> 00:31:51,600
Speaker 1: at the expense of kind of traditional oil and gas names.

613
00:31:51,600 --> 00:31:55,040
Speaker 1: And we think global economies are I mean, barring a

614
00:31:55,240 --> 00:31:59,360
Speaker 1: dramatic decline and demand, we think, you know, these these

615
00:31:59,520 --> 00:32:02,240
Speaker 1: traditional oil and gas companies are are going to be

616
00:32:02,280 --> 00:32:05,120
Speaker 1: around for a while, and they're also reinvesting in their

617
00:32:05,160 --> 00:32:09,760
Speaker 1: businesses to benefits from some of the new green technology.

618
00:32:09,920 --> 00:32:12,320
Speaker 1: It's just it's not going to be kind of a binary.

619
00:32:12,400 --> 00:32:16,400
Speaker 1: You go from fossil fuels to green. Yeah, we certain that.

620
00:32:16,800 --> 00:32:18,280
Speaker 1: We certainly saw that over the last couple of years,

621
00:32:18,320 --> 00:32:20,040
Speaker 1: Carol and mean we talked about all that all the time, right,

622
00:32:20,080 --> 00:32:22,120
Speaker 1: the idea of an energy transition, and we saw for

623
00:32:22,160 --> 00:32:24,239
Speaker 1: the last two years, and especially over the last year

624
00:32:24,280 --> 00:32:27,000
Speaker 1: as Russia invaded Ukraine, how reliant the world continues to

625
00:32:27,000 --> 00:32:29,200
Speaker 1: be on fossil fuels. You know, it's so funny. I

626
00:32:29,280 --> 00:32:32,120
Speaker 1: gotta tell you. Austin, Tim and I are looking at

627
00:32:32,160 --> 00:32:33,960
Speaker 1: each other and we're like, do we have enough oil

628
00:32:34,040 --> 00:32:36,240
Speaker 1: for forty years? And I know there are estimates that

629
00:32:36,280 --> 00:32:38,760
Speaker 1: maybe we have fifty years left, give or take a

630
00:32:38,760 --> 00:32:41,560
Speaker 1: little bit. So you're thinking it's a play until the

631
00:32:41,640 --> 00:32:43,640
Speaker 1: very bitter end. Having said that, we're gonna talk about

632
00:32:43,640 --> 00:32:45,680
Speaker 1: climate change later, and I'm just wondering how much more

633
00:32:45,680 --> 00:32:49,920
Speaker 1: pressure that might put on um the energy sector. Metronic, though,

634
00:32:49,960 --> 00:32:53,280
Speaker 1: let's go somewhere else. Metronic is another name that you like.

635
00:32:53,400 --> 00:32:55,640
Speaker 1: It's already up about three percent this year, and I'm

636
00:32:55,640 --> 00:32:57,479
Speaker 1: noticing to a lot of these names that you like,

637
00:32:57,920 --> 00:33:00,560
Speaker 1: you're talking about some dividend yells, which makes it also

638
00:33:00,680 --> 00:33:03,640
Speaker 1: a little bit extra attractive. I mean, Metronics three point

639
00:33:03,680 --> 00:33:07,480
Speaker 1: four percent dividend yield. Yeah, it's a historically high yield

640
00:33:07,560 --> 00:33:12,360
Speaker 1: for Metronic, which is a best in class medical device company.

641
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Speaker 1: They've had some missteps over the last basically since COVID

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Speaker 1: took place, with some troubles with product launches. We think

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Speaker 1: that's behind them. So currently you can pick up Metronic

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Speaker 1: at what is a relatively low operating margin and also

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Speaker 1: a relatively low valuation. We think with the the product

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Speaker 1: launch issues behind them and China reopening and people turning

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00:33:38,720 --> 00:33:43,000
Speaker 1: back to elective operations, we think there's there's room for

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Speaker 1: Metronic to expand those margins and also benefit from from

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00:33:46,480 --> 00:33:49,320
Speaker 1: a higher valuation. So we think it's a great time

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00:33:49,360 --> 00:33:52,120
Speaker 1: to buy a company that's kind of best in class,

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00:33:52,160 --> 00:33:55,120
Speaker 1: high quality that also has some growth in front of it.

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00:33:55,600 --> 00:33:57,360
Speaker 1: All right, Austin, we're gonna leave it. They're fun to

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Speaker 1: talk some names if you really appreciated. Austin graph under

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Speaker 1: in chief investment officer launched his own investment management firm

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Speaker 1: late last year. And as we said, uh Faunther and

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Speaker 1: c IO of Opal Capital. Thanks for listening to Bloomberg

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Speaker 1: Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg

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Speaker 1: dot com. You can also Listen to our radio show

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00:34:16,360 --> 00:34:19,680
Speaker 1: at two pm Eastern on Bloomberg Radio, or stream us

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Speaker 1: live on YouTube and Bloomberg dot com