Speaker 1: Bloomberg Audio Studios, Podcasts, radio news.
Speaker 2: Single best idea. It was a really wonderful day. I
Speaker 2: didn't realize it was Wednesday until two thirds of the way.
Speaker 2: So the show is one of those summer work days
Speaker 2: where we just had, like whatever, We had ten twelve,
Speaker 2: fourteen wonderful conversations. All of them avail you, and it's
Speaker 2: really hard to pick two out here. We went with
Speaker 2: David Malpass, controversial, some really heated opinion there with his
Speaker 2: Republican politics, serving with President Trump as former head of
Speaker 2: the World Bank. An eclectic discussion with David Malpass, and
Speaker 2: the major idea with David Malpass was the idea of
Speaker 2: the new globalization. He harkened back to Germany.
Speaker 3: Globalization means getting parts from other countries in an efficient way,
Speaker 3: So that made sense in areas. But then was it
Speaker 3: sensible for Germany to get its energy from Russia? No,
Speaker 3: from the Soviet communist Soviet Union and they cut sweet
Speaker 3: ardeals to do it. That was a mistake. Same with China,
Speaker 3: that we just went too far and had no knowledge
Speaker 3: of what we were doing in terms of the dependence.
Speaker 3: So I think as we you know, people use words,
Speaker 3: so globalization is this word that we think we know
Speaker 3: what it means. But I think we will stay in
Speaker 3: a market based global economy where you can outsource, but
Speaker 3: a lot of it is going to be made in
Speaker 3: the United States.
Speaker 2: David MOUNTPESSI dodge the conversation on Chairman Powell in the
Speaker 2: future for the chair and also of course what mister
Speaker 2: Trump may do about fed independence booth. Thank him for
Speaker 2: coming in today. Amanda Linam made us start strowing. She's
Speaker 2: a black rock, amand Alnum. Here on the spread market,
Speaker 2: the difference in yield between full faith and credit government
Speaker 2: and the comparative IG investment grade or a high yield piece.
Speaker 4: I think, just to go back to your point time
Speaker 4: on spreads, the tighter spreads just means a receptivity towards
Speaker 4: credit risk, right, more comfort towards credit risk. That's how
Speaker 4: we would think about it. Heading into earnings. One of
Speaker 4: the key things that we're watching is this feedback loop
Speaker 4: between corporate margins, the layoff rate, which is still low,
Speaker 4: consumer spending, and overall economic activity. Right now, if you
Speaker 4: can see this on the Bloomberg terminal, average EBITDUM margins
Speaker 4: for IG are above twenty percent average EBITDUM margins for
Speaker 4: high yield are above thirty percent. So what we're watching
Speaker 4: is is there pressure on those margins because of higher
Speaker 4: input costs for example, and do corporates flex that layoff
Speaker 4: tool more aggressively. But going back to the earlier discussion, actually,
Speaker 4: I think we've been pleasantly surprised that the multitude of
Speaker 4: levers that corporates can flex here, and so what we're
Speaker 4: really watching for is is there a middle ground between
Speaker 4: how these corporates navigate this, whether that's vendor relationships, inventory purchases.
Speaker 4: The list goes on to navigate these uncertainty Was.
Speaker 2: There enough jargon there, Amandolin, I'm true pro. She really
Speaker 2: stops meetings with a pro look at Blackrock. Let me
Speaker 2: explain some of that. It's really important. Actually, EBITDA is
Speaker 2: eb it t DA. I'm not going to go into
Speaker 2: what the letters mean. All you got to know is
Speaker 2: it's halfway down the income statement. You've got revenue coming in,
Speaker 2: you take out this, you take out that above operating
Speaker 2: income is this thing called EBITDA, which also pulls in
Speaker 2: a little bit of the depreciation and amortization off the
Speaker 2: balance sheet. So it's somewhat a huge debate within finance.
Speaker 2: Should you believe in Ebada? People look at it as
Speaker 2: a measure, and what Amandoline him is saying is they're
Speaker 2: watching carefully the resilience of the margins, the percent of
Speaker 2: sales of EBITDAC industry to industry, company to company. I
Speaker 2: just think, like the YouTube podcast just blew up there.
Speaker 2: I think her Apple podcast I should just stop too
Speaker 2: much discussion of. But we're out on YouTube podcasts, Apple
Speaker 2: and Spotify as well. It's single best idea