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Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.

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Speaker 2: Single best idea. It was a really wonderful day. I

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Speaker 2: didn't realize it was Wednesday until two thirds of the way.

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Speaker 2: So the show is one of those summer work days

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Speaker 2: where we just had, like whatever, We had ten twelve,

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Speaker 2: fourteen wonderful conversations. All of them avail you, and it's

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Speaker 2: really hard to pick two out here. We went with

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Speaker 2: David Malpass, controversial, some really heated opinion there with his

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Speaker 2: Republican politics, serving with President Trump as former head of

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Speaker 2: the World Bank. An eclectic discussion with David Malpass, and

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Speaker 2: the major idea with David Malpass was the idea of

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Speaker 2: the new globalization. He harkened back to Germany.

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Speaker 3: Globalization means getting parts from other countries in an efficient way,

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Speaker 3: So that made sense in areas. But then was it

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Speaker 3: sensible for Germany to get its energy from Russia? No,

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Speaker 3: from the Soviet communist Soviet Union and they cut sweet

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Speaker 3: ardeals to do it. That was a mistake. Same with China,

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Speaker 3: that we just went too far and had no knowledge

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Speaker 3: of what we were doing in terms of the dependence.

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Speaker 3: So I think as we you know, people use words,

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Speaker 3: so globalization is this word that we think we know

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Speaker 3: what it means. But I think we will stay in

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Speaker 3: a market based global economy where you can outsource, but

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Speaker 3: a lot of it is going to be made in

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Speaker 3: the United States.

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Speaker 2: David MOUNTPESSI dodge the conversation on Chairman Powell in the

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Speaker 2: future for the chair and also of course what mister

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Speaker 2: Trump may do about fed independence booth. Thank him for

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Speaker 2: coming in today. Amanda Linam made us start strowing. She's

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Speaker 2: a black rock, amand Alnum. Here on the spread market,

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Speaker 2: the difference in yield between full faith and credit government

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Speaker 2: and the comparative IG investment grade or a high yield piece.

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Speaker 4: I think, just to go back to your point time

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Speaker 4: on spreads, the tighter spreads just means a receptivity towards

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Speaker 4: credit risk, right, more comfort towards credit risk. That's how

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Speaker 4: we would think about it. Heading into earnings. One of

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Speaker 4: the key things that we're watching is this feedback loop

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Speaker 4: between corporate margins, the layoff rate, which is still low,

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Speaker 4: consumer spending, and overall economic activity. Right now, if you

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Speaker 4: can see this on the Bloomberg terminal, average EBITDUM margins

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Speaker 4: for IG are above twenty percent average EBITDUM margins for

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Speaker 4: high yield are above thirty percent. So what we're watching

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Speaker 4: is is there pressure on those margins because of higher

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Speaker 4: input costs for example, and do corporates flex that layoff

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Speaker 4: tool more aggressively. But going back to the earlier discussion, actually,

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Speaker 4: I think we've been pleasantly surprised that the multitude of

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Speaker 4: levers that corporates can flex here, and so what we're

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Speaker 4: really watching for is is there a middle ground between

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Speaker 4: how these corporates navigate this, whether that's vendor relationships, inventory purchases.

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Speaker 4: The list goes on to navigate these uncertainty Was.

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Speaker 2: There enough jargon there, Amandolin, I'm true pro. She really

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Speaker 2: stops meetings with a pro look at Blackrock. Let me

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Speaker 2: explain some of that. It's really important. Actually, EBITDA is

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Speaker 2: eb it t DA. I'm not going to go into

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Speaker 2: what the letters mean. All you got to know is

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Speaker 2: it's halfway down the income statement. You've got revenue coming in,

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Speaker 2: you take out this, you take out that above operating

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Speaker 2: income is this thing called EBITDA, which also pulls in

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Speaker 2: a little bit of the depreciation and amortization off the

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Speaker 2: balance sheet. So it's somewhat a huge debate within finance.

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Speaker 2: Should you believe in Ebada? People look at it as

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Speaker 2: a measure, and what Amandoline him is saying is they're

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Speaker 2: watching carefully the resilience of the margins, the percent of

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Speaker 2: sales of EBITDAC industry to industry, company to company. I

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Speaker 2: just think, like the YouTube podcast just blew up there.

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Speaker 2: I think her Apple podcast I should just stop too

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Speaker 2: much discussion of. But we're out on YouTube podcasts, Apple

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Speaker 2: and Spotify as well. It's single best idea