WEBVTT - Single Best Idea with Tom Keene: Holger Schmieding & Brian Belski

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Single best idea and lots to talk about here. The

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<v Speaker 2>market's a real movement a couple of days ago off

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<v Speaker 2>of maybe the Supreme Court questioning and up and back

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<v Speaker 2>and vacillating that, trying to set up to get to

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<v Speaker 2>the end of the fourth quarter, and of course arching

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<v Speaker 2>over all of this is the government shut down. Ana

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<v Speaker 2>Wong just absolutely brilliant today with their direct knowledge of

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<v Speaker 2>how these institutions run, Doctor Wang of Bloomberg Economics, really

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<v Speaker 2>really quite good. What a joy and sometimes you make

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<v Speaker 2>your luck. Holgersch meeting with us and our team new

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<v Speaker 2>to get Holger schmeting a Barrenberg bank in is the

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<v Speaker 2>Bank of England news was released and I'm like, yeah, okay,

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<v Speaker 2>so what Bank of England? Nobody cares guess what for

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<v Speaker 2>American For everybody within economics, finance, investment, in international relations

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<v Speaker 2>today the Bank of England matter why it was a

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<v Speaker 2>five to four decision. I can't say enough about the

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<v Speaker 2>nakedness of their approach versus the choreographed ballet of the

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<v Speaker 2>Washington Fed a five to four decision there, Governor Bailey's

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<v Speaker 2>headlines were absolutely riveting. Holger Schmiding of Behrenberg Bank and

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<v Speaker 2>the Bank of England on the FED.

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<v Speaker 1>I would say it's a good talking point, but descent

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<v Speaker 1>on its own is not always good. It depends on

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<v Speaker 1>what the arguments are. And in a way this descent

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<v Speaker 1>shows that we are in rather uncertain times. The Bank

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<v Speaker 1>of England really is having in a quandary. Inflation very high,

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<v Speaker 1>but the economy likely to slow. So what do they

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<v Speaker 1>do in the.

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<v Speaker 3>Reset to a higher inflation rank going from one point

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<v Speaker 3>ninety two percent out to two point x Dare I

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<v Speaker 3>say three percent? There's a culture for that in America.

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<v Speaker 3>Maybe there's a culture for that in pre Brexit England.

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<v Speaker 3>In Germany, to pocote the economist Bart Simpson, they're going

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<v Speaker 3>to have a cow. How is Germany going to react

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<v Speaker 3>to a new higher inflation regime?

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<v Speaker 1>Well, Germany will probably be part of the higher inflation

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<v Speaker 1>regime for a simple reason. We have labor shortages coming

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<v Speaker 1>across most of the advanced world, especially in the US

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<v Speaker 1>thanks to well net immigration dropping to zero over here,

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<v Speaker 1>and in Europe demography plays a road.

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<v Speaker 2>What a joy to have Holger Schmidding in our studios

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<v Speaker 2>in New York. He is just absolutely definitive on the continent.

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<v Speaker 2>There's an assumption here, folks that at some point out there,

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<v Speaker 2>for any number of reasons, including Chinese dynamics, that we

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<v Speaker 2>see the opposite of inflation or disinflation. The win of

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<v Speaker 2>that is a huge mystery. Brian Belski with us today,

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<v Speaker 2>a legendary BMO Capital Markets. Here is someone who has

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<v Speaker 2>said participate in the market, have the courage to believe

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<v Speaker 2>in the American experiment. He sets up shop out of

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<v Speaker 2>Tampa in Minnesota. Brian Belski and his team Humillis Investment.

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<v Speaker 2>Here is Belski on the moment at hand for the

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<v Speaker 2>stock market.

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<v Speaker 4>I think we're in kind of this conundrum right now.

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<v Speaker 4>Markets actually have held in there a little bit better

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<v Speaker 4>than we thought. We thought we'd actually get a little

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<v Speaker 4>bit more of a pullback here. I think one of

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<v Speaker 4>the problems with the market is there are too many

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<v Speaker 4>bulls here at the end of this big bull cycle,

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<v Speaker 4>or at least the end of the big move this year,

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<v Speaker 4>and we really believe that Macro has really done a

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<v Speaker 4>disservice to investors really since two thousand and nine. Now,

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<v Speaker 4>your question is what happens when we get a flood

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<v Speaker 4>of all this data. Again, it could be information overload,

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<v Speaker 4>and at the end of the day, we're kind of

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<v Speaker 4>looking forward with respect to the with the what's going

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<v Speaker 4>to be in terms of these job losses that we

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<v Speaker 4>keep hearing about in what the Fed is going to

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<v Speaker 4>do in twenty twenty six back up and yields to

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<v Speaker 4>five percent clearly has put a dampening on the broadening

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<v Speaker 4>out trade on a near term basis.

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<v Speaker 2>Brian Belski of humillis, what am I going to do?

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<v Speaker 2>And there's a shutdown, and there's any number of opinions

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<v Speaker 2>on this. Anna Wog was brilliant about if we get

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<v Speaker 2>to I believe it's next Saturday, like eight nine days away,

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<v Speaker 2>then it's a mystery to December. I don't know anything

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<v Speaker 2>about that. What I do know is I'm going to

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<v Speaker 2>really pay attention to Jason Furman's wonderful work at Harvard

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<v Speaker 2>where he teaches X ten on annualized rates of inflation

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<v Speaker 2>once we get the data in, and I'm also going

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<v Speaker 2>to look to Anna Wong and her wonderful work with

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<v Speaker 2>Bloomberg Economics. The granularity. You know, we make jokes about it.

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<v Speaker 2>We talked to Anna Wog about McDonald's and all that,

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<v Speaker 2>the work, the granularity of what all of our guests

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<v Speaker 2>do is just is not to be underestimated. We're out

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<v Speaker 2>on Apple, on Spotify, thank you particularly to the Pacific

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<v Speaker 2>rim for a big Spotify presence, and on YouTube podcasts.

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<v Speaker 2>It's single best idea