Speaker 1: Ye, Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keane
Speaker 1: Jay Lee. We bring you insight from the best in economics, finance, investment,
Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,
Speaker 1: Bloomberg dot Com, and of course on the Bloomberg Den
Speaker 1: Edwards and I know we are as good as our team,
Speaker 1: and our teams sometimes will they do things because they're brilliant,
Speaker 1: and also the surveillance teams sometimes you get lucky. We
Speaker 1: did that before December thirty one when we said, Tony Cosenzi,
Speaker 1: you need to start our year, and then we enjoyed
Speaker 1: the summer thirty one where things fell out about concenz
Speaker 1: the PIMCO. He's definitive on short term paper. And bring
Speaker 1: up the chart of here McKinnon, if you would. This
Speaker 1: is the I've never shown this chart before. I'm only
Speaker 1: doing this because Conscendi showed up in an early hour
Speaker 1: one year two year difference in yield and you've got
Speaker 1: the oudities before the crisis and then the normality of
Speaker 1: a difference in yield between a two year in a
Speaker 1: one year, and we fell off a cliff. Tony Cocenzi,
Speaker 1: let's start with the why of the short term paper market.
Speaker 1: Why is the one year two year yield inverted? Where
Speaker 1: one year yields are higher than two year yields. This
Speaker 1: is a crystal ball is telling you about the future
Speaker 1: and what the market thinks of the Fed and what
Speaker 1: it will do with this policy rate. We know the
Speaker 1: Fed in December racist policy rate to two and a
Speaker 1: quarter two and a half. Here the market saying it
Speaker 1: will go back below two at some point. Are they
Speaker 1: predicting a rate cut at market point? Predicting a rate
Speaker 1: cut at the beginning part of next year, so we
Speaker 1: won't be roaring into the twenties like we did a
Speaker 1: hundred years ago. Well, you could be stumbling into the twenties,
Speaker 1: is what the market is saying. What everybody wants to
Speaker 1: know in global Wall Street from you is when we
Speaker 1: talk commercial paper or library ois and the other arcane
Speaker 1: stuff that you and and Jerome Schneider and others at
Speaker 1: PIMCO look at every day. Okay, great? Is that a
Speaker 1: liquidity crisis is an attention within the corporate space. Absolutely
Speaker 1: not a liquidity crisis. There's still over one trillion dollars
Speaker 1: of extra money that banks could utilize to keep themselves. Liquid.
Speaker 1: Banks are in exceptionally good shape today. Still many worry
Speaker 1: about it, but there's no there aren't the excessis there
Speaker 1: that many people cite. What is concerning is that we
Speaker 1: this all began in markets, the stress with political factors,
Speaker 1: not macroeconomic ones. It was related to briggsit was related
Speaker 1: to Italy, it was related to trade stories. Now what
Speaker 1: markets have to worry about is the feedback loop where
Speaker 1: what happened in markets because of politics sus to feedback
Speaker 1: into the real economy and then back into the markets.
Speaker 1: So there's one of the major questions for this year
Speaker 1: is whether we can get past the tenth year of
Speaker 1: expansion in June, making it a record dating back to
Speaker 1: the mid eighteen hundreds or not when we stumble into
Speaker 1: the twenties or roar like a hundred years ago. It
Speaker 1: looks like we may stumble, but there's a lot that
Speaker 1: could happen that changes things. When this sense of pessimism,
Speaker 1: of course, it's an accumulation period. Weren't you be thinking
Speaker 1: about building assets? But be careful, very careful about that. Okay, Tony,
Speaker 1: good morning to you. So if this inversion at the
Speaker 1: very short end, then it's telling us something kind of
Speaker 1: gloomy about where we'll be roaring or stumbling into the twenties.
Speaker 1: And what kind of lag does this normally deliver them?
Speaker 1: When you look at the shorter end of the curve,
Speaker 1: what kind of lag does this kind of signal usually require. Well,
Speaker 1: it depends. Markets will tend to be correct on this,
Speaker 1: but not only call. Let's say nine months would be
Speaker 1: a period where it has Christine accuracy. One looking out
Speaker 1: a year or two not so great. Think about a
Speaker 1: year ago markets said the Fed would put his policy
Speaker 1: very potentially yet around three now instead of rate hikes
Speaker 1: that would stay in place for through and even markets
Speaker 1: think there'll be a rate cut. So it shows you
Speaker 1: that looking past one year out becomes a bit precarious.
Speaker 1: And so this four cast that markets have today for
Speaker 1: an interest rate cut may not be correct. But is
Speaker 1: it that important anyway? The global story and interest rates
Speaker 1: is quite benign. Look at the German boon today, the
Speaker 1: tenure point one five. There are trillions of dollars and
Speaker 1: ten trillion dollars of bonds globally negative yielding. So the
Speaker 1: worry and markets today is very little to do with
Speaker 1: interest rates and the FEDS rate hikes. It has a
Speaker 1: lot to do with the other factors I mentioned. I
Speaker 1: think one final final point of breaks it. The Bank
Speaker 1: of England said the UK economy could shrink eight percent
Speaker 1: in the case of a heart breaks it. And so
Speaker 1: there are numerous other things markets are concerned about that
Speaker 1: need be resolved. And before this feedback loop starts to
Speaker 1: hit the economy and markets again, do you think the
Speaker 1: fet shured pools here? Tony, there is a very strong
Speaker 1: case for the Fed pausing at the March meeting when
Speaker 1: it's when the next rate hip potentially could occur. As
Speaker 1: many have postulated. Uh, financial conditions do matter. The transmission
Speaker 1: of Monterrey policy occurs through five channels at stock prices,
Speaker 1: bond deals, credit spreads, the dollar and bank lending stands.
Speaker 1: To send all these combined today suggests the US economy
Speaker 1: will be weaker this year than otherwise. Let's come back,
Speaker 1: Tony Consenzi with us without questioning our conversation with the dam.
Speaker 1: I'm gonna look to the terminal and tell you, Tony
Speaker 1: Consenzi has lifted the market here in the last ten minutes.
Speaker 1: What's great about free of amish with Pantheon in England?
Speaker 1: She has lived China, She's not only been there, but
Speaker 1: attempts at Mandarin? Can you order a pizza in Mandarin? Free?
Speaker 1: Are you to the point where your Mandarin is so
Speaker 1: good you can order a pizza to go? I'm I'm
Speaker 1: no fan of Chinese pizza, but um, yeah I can. Okay, Well,
Speaker 1: we got tom Honestly, you go to Shanghaio, Beijing and
Speaker 1: order pizza. Yeah, sure, that's what I would do anyways
Speaker 1: for you for a good morning? Are we what is
Speaker 1: the thing you're searching in in in China GDP? After
Speaker 1: the comments of President she over the last three or
Speaker 1: four days, he's made some speeches, I think they're below
Speaker 1: the radar, But what is the data thing that you're
Speaker 1: trying to observe to gauge where China is? Well? I
Speaker 1: guess the PMS that we had out this morning we're
Speaker 1: pretty unpleasant. I think the consensus was always a little
Speaker 1: bit high on that, especially we have we had the
Speaker 1: official out already, but um, in terms of the report
Speaker 1: itself and the kind of breakdowns that we had there,
Speaker 1: it was telling us that the employment situation is still
Speaker 1: quite um, quite shaky. We've still got producer price inflation
Speaker 1: slowing um, and that that feeds through obviously to the
Speaker 1: massive industrial sector, and it's a massive the tarrent on
Speaker 1: on future production um. The good news, I think we're
Speaker 1: all very focused at this stage on on the on
Speaker 1: the bad news, and certainly I'm not going to jumping
Speaker 1: on any kind of good news bandwagon, but I think
Speaker 1: it is relevant at this stage to point out a
Speaker 1: few um kind of good news elements from from the
Speaker 1: data that we're seeing at the moment. I think, first
Speaker 1: of all, that the p M I is probably going
Speaker 1: to trough above where we saw in ten, so that
Speaker 1: was the last kind was the last kind of real
Speaker 1: kind of significant downtourn that we had in China. I
Speaker 1: think we'll probably trough above that this time. The bad
Speaker 1: news is that we still have some further deterioration to
Speaker 1: go before before we get there. The leading indicators have
Speaker 1: kind of leveled off. We're starting to see the kind
Speaker 1: of the the most advanced leading indicators are pointing towards
Speaker 1: a pick up um in the second half of the year,
Speaker 1: but we still have some some further deterioration to go
Speaker 1: before then. In in the p MS and the GDP data.
Speaker 1: Although the headlines might not actually show that. So we've
Speaker 1: got we've got some good news out that we've certainly
Speaker 1: got stimulus in the pipeline, not really coming through yet
Speaker 1: the UM the the overall level, we've put our kind
Speaker 1: of infrastructure. We've got our season ping and the work
Speaker 1: conference that we had at the end of last year
Speaker 1: which sets out the the policy direction for for this year. UM.
Speaker 1: We had an important revelation there that there will be
Speaker 1: increase in the in the quota for local government bond
Speaker 1: issuance and that's where we get our infrastructure growth going
Speaker 1: from again. UM. And I think actually there is probably
Speaker 1: still room for a bit of a rate cut which
Speaker 1: would probably enhance the efficacy of the of the measures
Speaker 1: that they made, the targeted lending facility measures that they
Speaker 1: introduced at the end of last year. UM. So there's
Speaker 1: stimulus there, the stimulus potentially more coming through. And I
Speaker 1: think probably on the trade front as well, we can
Speaker 1: we can be a little bit positive and that in
Speaker 1: that sense as well. Let's start with the policy tools
Speaker 1: they've got available to them, and then we can talk
Speaker 1: about the trade negotiations. You mentioned the slowdown in fourteen
Speaker 1: fifteen that bled into sixteen as well, that slowdown was
Speaker 1: accompanied with some real policy shocks, and one of them
Speaker 1: was around the currency free Do you see the stage
Speaker 1: there for something similar again or is it very different
Speaker 1: this time? I think um, I think there's enough time
Speaker 1: for the PBOC to get a little bit scared in
Speaker 1: the first half UM that that things are not turning around.
Speaker 1: I think, as they said, the stimulus is actually in
Speaker 1: the pipeline, but that the lag seems to be UM
Speaker 1: a little bit longer this time around them previously, and
Speaker 1: that leaves the p BOC and policymakers in the position
Speaker 1: of having to kind of sit on their hands and
Speaker 1: wait until the stimulus comes through. And I'm not sure
Speaker 1: that they'll be willing to do that. So I think
Speaker 1: we will probably see a rate cut or something that
Speaker 1: is effectively like a rate cut. It might not be
Speaker 1: an actual publicized rate cut, but there will be something
Speaker 1: UM that will that will help to loosen monetary conditions
Speaker 1: further UM and that that obviously exerts a downward pressure
Speaker 1: and the women B But we are in a change
Speaker 1: situation here with with regards to the FED. UM, it's
Speaker 1: looking it's not looking likely anymore that they'll they'll hike
Speaker 1: in in March, and that gives the PBC a little
Speaker 1: bit more room there. Um. And also, as I said,
Speaker 1: when we get to talk about the trade deal, that
Speaker 1: will release a little bit of pressure of depreciation, pressure
Speaker 1: from the from the room and b So it gives
Speaker 1: them a little bit more room there. But but I
Speaker 1: think there's there's definitely the potential for the PBOC to
Speaker 1: kind of surprise markets with it with a bit more
Speaker 1: of a of a stimulus. So free you brought up trade,
Speaker 1: so let's talk about it. It's clear to me that
Speaker 1: there's an incentive for President Chesing Ping to come to
Speaker 1: the table and try and strike a deal with the
Speaker 1: President of United States Donald Trump through what's not clear
Speaker 1: to me as the concessions the president she is willing
Speaker 1: to make. What are those concessions? Well, the the UM
Speaker 1: in the policy setting meeting that we had at the
Speaker 1: end of last year. UM, you don't get a lot
Speaker 1: of detail in that kind of a of a redoubt,
Speaker 1: but there was one sentence which said that they were
Speaker 1: going to prioritize the the agreement, reaching the agreement UM
Speaker 1: and implementing the the agreement that was made at the
Speaker 1: G twenty meeting in November. So that's a good sign
Speaker 1: to start with, at least rhetorically, UM. But they they've
Speaker 1: also made moves in the direction of cutting pariffs. They've
Speaker 1: restarted or they've kind of signaled that they're about to
Speaker 1: restart UM imports from from the U S which they
Speaker 1: actually have pulled back on very sharply in the second
Speaker 1: half UM. And also they've they've critically made made kind
Speaker 1: of rumblings in the right direction with regard to the
Speaker 1: forced technology transfer. I like in your research note you're
Speaker 1: not going to affect to South Korea as well. What
Speaker 1: are your adjacency effects of this supposed slowdown in China. Yeah,
Speaker 1: I think we've seen it UM. We often see it
Speaker 1: actually first in some of the Korean data because Korean
Speaker 1: UM sitting at at the head of the of the
Speaker 1: supply chain, and they also happened to publish very early
Speaker 1: in the in the kind of the data calendar. So
Speaker 1: definitely we've seen a slowdown in Korean export volumes. Unfortunately,
Speaker 1: there's been a lot of noise there because of changing
Speaker 1: holidays and that kind of thing, but that the overall
Speaker 1: trend is one of of weakness from from Korea. We're
Speaker 1: starting to see that feed through to Japan as well.
Speaker 1: Um so it with there's there's definitely evidence there that
Speaker 1: these these economies are struggling as a result of China's slowdown.
Speaker 1: Free I have a great new year and we literally
Speaker 1: really look forward to catching up with you in Shanghai
Speaker 1: at DeMarco Pizza one f Golden Bridge Garden. I didn't ask,
Speaker 1: but it's there's many there's a lot of pizza places
Speaker 1: in Shanghai. You know that I really should do Shanghai
Speaker 1: with you. It sounds like you have a really different
Speaker 1: experience of it. It's a different experience to what many
Speaker 1: other people would free of Bemish, thank you so much.
Speaker 1: With Panthe on China. Serious news there out of China
Speaker 1: joining US now Dana Peterson with City Growth, their North
Speaker 1: American economist, Dana, If I look at the City group, well,
Speaker 1: have you people amended or adjusted your outlook for next
Speaker 1: year in the last two or three days, No, we haven't.
Speaker 1: We still expected the set is going to be raising
Speaker 1: rates at least a couple of times this year, potentially
Speaker 1: in March, and certainly the impass in the federal government
Speaker 1: is not going to be a major determining factor in
Speaker 1: the set delaying any of the activities for this year.
Speaker 1: Will tightening financial conditions be a big factor? Well, I mean,
Speaker 1: financial conditions have tightened a little bit, but there's still
Speaker 1: quite loose. But I'm certain that the set is going
Speaker 1: to be watching that along with all the other economic
Speaker 1: indicators that pays attention to when it's doing it's a
Speaker 1: monetary policy calculus. But at the moment, the only economic
Speaker 1: indicators that continues to surpass the economic expectations of the
Speaker 1: economists are the labor market and the household sector. Everything
Speaker 1: cows is deeply negative and disappointing to it. Do you
Speaker 1: see that turning around anytime soon? Well, I mean when
Speaker 1: I look at certainly the fourth quarter, the economy still
Speaker 1: grew pretty robustly in the two and a half to
Speaker 1: represent range UM. Yeah, some of the most recent economic
Speaker 1: indicators have been a little bit weak, but you know,
Speaker 1: the set is looking at UH inflation, the set is
Speaker 1: looking at UM certainly labor market, and also you know
Speaker 1: overall GDP, and still on most of those fronts we're
Speaker 1: doing well. I mean we will. We do anticipate some
Speaker 1: weakening of inflation, certainly because loil prices are are falling,
Speaker 1: and also you have some other underlying factors, and certainly
Speaker 1: that might cause us set to consider you hikes this
Speaker 1: year as you perceive it as an economist. Are the market?
Speaker 1: This has been my theme for this morning. I don't
Speaker 1: hate to bore people, but do you see markets is
Speaker 1: rational and normal with their new volatility or are there
Speaker 1: discontinuities here that get your attention? Sure? I think you
Speaker 1: know the different markets will be are reacting for different reasons.
Speaker 1: Certainly you know the bond market is concerned about the
Speaker 1: YE curve uh flattening um and what signals that gives us.
Speaker 1: I would suggest that maybe this time is a little
Speaker 1: bit different. We haven't had QUEI in the past uh
Speaker 1: kind of muddling the signals from the yolker. But certainly
Speaker 1: equity market has been very weak UM. I think some
Speaker 1: of that just a little bit of a steam coming out,
Speaker 1: but also concerns about the global economy as well as
Speaker 1: the trade to see. So then what do you see
Speaker 1: within your North American purview of YCLS C plus I
Speaker 1: plus G plus net X. I mean, is this all
Speaker 1: about the trade war or their investment and consumption dynamics
Speaker 1: that are leading to these instabilities? So I think consumption
Speaker 1: is still being super charged by the tax reform, but
Speaker 1: we are concerned about investment. Indeed, with the equity market weakening,
Speaker 1: that's certainly the signal for our investors, and certainly with
Speaker 1: respect to CAPEX, you know the businesses are not going
Speaker 1: to have another big injection from tax reform this year,
Speaker 1: and you still have concerns about trade. I guess Dan,
Speaker 1: with one final question than today you say you haven't
Speaker 1: changed the city view, what is your view on FED calls?
Speaker 1: Because what we're hearing from guest if your guests is
Speaker 1: a January thirty meeting has very suddenly become important. Yes, absolutely,
Speaker 1: I mean we we've we've always had a March hike
Speaker 1: and they did not have a hike in in January.
Speaker 1: But certainly January is gonna be important for how to
Speaker 1: said US easy economy, whether they're overly rather more concerned
Speaker 1: about weakening inflation, if they're more concerned about weakening in China,
Speaker 1: and certainly in the trade outlook for the US. And
Speaker 1: so I definitely think that's gonna be a very important
Speaker 1: meeting that we should be looking at. Dana, Thank you
Speaker 1: so much. Dana Peterson was City Group. Um, we have
Speaker 1: been remiss, and it's importantly been remiss with the sobering
Speaker 1: idea Pim Fox of how wrong so many got the
Speaker 1: transformation in Brazil when Mr Lula came on board. It
Speaker 1: was I say this in every speech I ever give.
Speaker 1: It was one of the great miscalls I made. I
Speaker 1: was incredibly wrong about the Brazilian economy, their resiliency under
Speaker 1: political change. Him. Here we are again with more political change,
Speaker 1: and we are all right, bringing Pim. I'll let you
Speaker 1: bring all right. Well, this all has to do, of course,
Speaker 1: with the new government of Mr Bullsonaro. President Bulsonaro taking
Speaker 1: office in the inauguration, and he's set to announce a
Speaker 1: variety of economic measures the design cut red tape and
Speaker 1: also fight retirement benefit fraud, while leaving pension reform for
Speaker 1: later on. Here to tell us about what's going on
Speaker 1: in the country, Oscar Decotelli, the chief executive of d
Speaker 1: x A Investment. Oscar Decotel tell us a little bit
Speaker 1: about the President of Bulsonaro and what you believe his
Speaker 1: agenda includes. Hi, Pim, Hi Tom, thank you very much
Speaker 1: for taking the time to talk to me. I think
Speaker 1: we're starting off a new year, a new administration that
Speaker 1: both on our government brings definitely a mentality of trying
Speaker 1: to reduce the size of the government with twenty two
Speaker 1: ministries only, with a mentality also of trying to reduce
Speaker 1: the whole corruption around the government what we've seen in
Speaker 1: this last year's but also trying to bring a new
Speaker 1: agenda of bringing growth back to the country. And I think, uh,
Speaker 1: for all of us here, we're quite hopeful that this
Speaker 1: is going to become a reality, but there are definitely
Speaker 1: some challenges to face in the next a hundred days. Right,
Speaker 1: What are some of the specific measures that the government
Speaker 1: needs to get right and get right quickly? Yeah? Sure.
Speaker 1: I think the first thing is that about the government
Speaker 1: spenditure are defined by the Constitution, and for that matter,
Speaker 1: there's not a lot of room to be able to
Speaker 1: change unless you go through a death very kind of
Speaker 1: a bureauratic process of voting through the Congress and the Senate.
Speaker 1: So what I think we're gonna be able to see
Speaker 1: in the short term are the new propositions for the
Speaker 1: social security reform and definitely a privatization agenda, trying to
Speaker 1: reduce the government that by selling some of these more
Speaker 1: kind of assets to the government owns. How will the
Speaker 1: elites react to this president as compared to how they
Speaker 1: reacted to Mr Lula a lifetime ago. Well, Tom, it's
Speaker 1: a great point. I think it's quite different than two
Speaker 1: thousand and two, and we saw Lula coming on coming
Speaker 1: on board, the elite was very negative on the country,
Speaker 1: thinking that it would be kind of a big problem
Speaker 1: for the country, and at the end of the day,
Speaker 1: Lula became really a president that helped out, especially around
Speaker 1: those years, for the country to grow. I think this
Speaker 1: time around is a little bit different. Now we're seeing
Speaker 1: the elite very positive, with a more of a right
Speaker 1: wing mentality government, and definitely the fact that he's bringing
Speaker 1: on board as ministers very technical guys that have very
Speaker 1: strong private sector success. I think it's been probably the
Speaker 1: government that people have been giving a lot more hope
Speaker 1: that we've seen in this last decades. Now. He just
Speaker 1: raised a minimum wage, correct correct? Yeah, So it was
Speaker 1: already expected to see that the former president Tamar was
Speaker 1: going to release that, but it was releasing middle of
Speaker 1: the afternoon, not not big news. This already kind of expected.
Speaker 1: Will this help the domestic economy at all? Or are
Speaker 1: people more concerned about corruption and crime. Uh, definitely, this
Speaker 1: was an election about corruption and crime. Uh, we didn't
Speaker 1: see I always say that Bosonado came as a representative
Speaker 1: of a cleaner government and not necessarily with a lot
Speaker 1: of the his propositions were Now seeing the propositions coming
Speaker 1: on board, uh and uh, so far they seemed positive.
Speaker 1: But I think this was much more of an election
Speaker 1: of discussing. I'm not wanting the old corruption scheme, of
Speaker 1: of the old politics go ahead on. Well, what's the
Speaker 1: opportunity here? I mean for global investors, we look at reality,
Speaker 1: have I think a highly simplistic view. What is the
Speaker 1: domestic opportunity for international investors within this new Brazil? I
Speaker 1: think it's a It's a great question because Brazilian if
Speaker 1: you add exports and imports, and we don't even come
Speaker 1: up to the GDP. So really eighty percent of the
Speaker 1: stories is about domestics. Right, We've seen some of the
Speaker 1: stocks and some of the of the stories are related
Speaker 1: to consumption going very well in these last year. I
Speaker 1: think we're gonna be able to see more of that.
Speaker 1: We see consumption related, we see healthcare related, education. I
Speaker 1: think we will be able to see now that there's
Speaker 1: a lot of slack in the economy with a very
Speaker 1: high unemployment rate, We're gonna be able to see some
Speaker 1: of these domestic stories coming on board, and I think
Speaker 1: that the wise investor will be able to select if
Speaker 1: he's going to go to public. Uh, there's some very
Speaker 1: kind of low pe multiples that are still kind of
Speaker 1: applying here in the market that you'll be able to
Speaker 1: buy them. I'm more of a private equity guy, as
Speaker 1: you guys know. So I think there's some very kind
Speaker 1: of uh multi year possibly that kid trends are gonna
Speaker 1: happen here that are positi no brainers for us. Can
Speaker 1: you give us one example? Yeah, of course. So I've
Speaker 1: invested in the logistics company just to give an idea.
Speaker 1: Amazon Prime is not president in Brazil. So in a
Speaker 1: country which is the fifth largest population in the world,
Speaker 1: fifth largest territory, we don't have just some time and logistics,
Speaker 1: there's no really delivery kind of of Okay, So well
Speaker 1: let's break some news here. Are you suggesting the Mr
Speaker 1: Bezos who listens religiously, are suggesting the Mr Bezos that
Speaker 1: he needs to come to Brazil? Yeah, definitely. I think
Speaker 1: Mrs Basis will have a very hard time coming to
Speaker 1: Brazil without having a strategic logistics plan because differently than
Speaker 1: the other countries, the logistics is not present here. Only
Speaker 1: for four of the roads are paved here, so you
Speaker 1: need to have a different mindset of simply kind of
Speaker 1: building up a express company on top of a UPS
Speaker 1: or FedEx structure. There's none here. So this means that
Speaker 1: if Tom wants to get away from all the Amazon boxes,
Speaker 1: he can go and find Brazilian boxes in Brazil, but
Speaker 1: not Amazon boxes. Yeah, but even the Brazilian boxes are
Speaker 1: very hard to get. You have a lot of regional players,
Speaker 1: you don't still have a national solution. So we ended
Speaker 1: up investing in a company that was the first one
Speaker 1: to to use airlines for instance. So can we tell
Speaker 1: us the name of the company. It's called Modern Logistics,
Speaker 1: was founded by a former VP of Jet Blue that
Speaker 1: founded a zool in Brazil. Gldly Man interviewed. Interesting, Well,
Speaker 1: I can leave it there, Hosk. You can tell you
Speaker 1: thank you so much, greatly appreciate what day a window
Speaker 1: into Brazil. And again, I you know, I'll say this
Speaker 1: a million times. You remember where you were wrong so
Speaker 1: much more than the little victories. Thanks for listening. To
Speaker 1: the Bloomberg Surveillance podcast. Subscribe and listen to interviews on
Speaker 1: Apple Podcasts, SoundCloud, or whichever podcast platform you prefer. I'm
Speaker 1: on Twitter at Tom Keene before the podcast. You can
Speaker 1: always catch us worldwide. I'm Bloomberg Radio