Broadcasting Live from UBS Arena at Belmont Park

Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot Com. You can also listen to our radio show at two pm Eastern Time on the Bloomberg Radio or watch us on YouTube search Bloomberg Clovel News. We are live at the UBS Arena in Elmont, New York, and we've got two great guests with us right now. I want to bring a majority owner of the New York Islanders. We're talking about John Laedecki, also with us as a CEO and co founder of Oakview Group. Tim lie Wacky. That's good, correct.

I told you it took me twelve years to do it myself. I'm working on it. I'm working on it. Um you guys, you know together created this incredible arena. First of all, I want to ask you John let me kick it off with you. It's been a while since you've had a home place to play. Well, the fans have been on quite a journey, and as Tim has said, and my partner, Scott Malcolm, the co owner of the New York Ounders, has said, the fans deserve

a new home. The milk carton sell by date on the Nasau Coliseum was probably so it's been a long journey. Your picture wasn't on the side of that little but it really is quite quite a momentous occasion for our fans. They're the best fans in the National Hockey League and they deserve a new venue, and they're getting state of the art, beyond state of the art because of Tim and Oakview Group in Sterling Project Development led by Jeff Wilpon.

What they've done here is magnificent. Thank you, Tim Outhouse to the penthouse. John to that point, Tim, what what is special about this arena? So one, it's New York and so when we started our company, we were fortunate enough to partner with John and Scott on building this. But for us to be a world class company, you have to be in New York. New York is a very competitive marketplace. It has the world's most famous arena, Madison Square Garden. So you gotta go compete, and you

you're competing in the biggest city in the world. You're competing in a city that ultimately has these wonderful venues that are already doing quite well. So we had to go carve out our niche. We had to go find an identity and a culture for ubs arena that made us unique. And we very very fortunate that right off the bat we get Harry Styles and we break all records with Ticketmaster for pre registration. So clearly it's gonna

work for the islander fans. They've they've had thirty years worth of the desert before they finally found this, and now we're gonna work for music, and we're going to be in great shape with music because I think what people forget. Seven million people live closer to this arena than any other arena in the metro area. It's a big it's a big island, and we have sand but it's in the peach by the way, you know what

that is? What is that? So as you know, I built the Climate Pledge Arena in Seattle, and that's the home of the cracket. So I brought him out here with me for open weekend and he's hungry. We don't anywhere back there. You don't want to see him run. When you guys are putting this together, what were the conversations John, What did you guys? What did you want to have as a home place for your team? On budget, on time was the most important thing for Sling And

Tim is really a visionary right. Tim has built more arenas and ran more arenas than any human being alive today. Not a question longevity, He's just built great businesses. Oakview Group was started the next week. We met Tim in the hotel room in Montreal and he gave us the vision of what an arena should look like. And now I think he's got twenty five or eight in development. But his vision, combined with Scott's real estate background, created

this fantastic place. What we do think about like the pandemic and stuff like did that impact You're thinking about how because there's a lot of touch lists right ease and people just going in and doing their things. So two things, One could you imagine spending a billion privately on and endeavor like this? And then all of the studd is privately funded. It is privately funded. That taxpayers money I want to be used for education and safety and transportation. So we we did. We did this the

right way. But in the middle of that commitment, suddenly, you know, I used to tell people, they don't teach this in school, so you got to go and figure this out on the fly. I think there were We made changes to the design of the building because of the COVID. So you'll see in the building we have a three dred and sixty degree air circulation system. We have MERV thirteen filterization system. That's what you see in hospitals. We trapped the bad guys, so we have more airflow

coming in and out of this building. I'm not cussing here. It's really the name of the company. We have four fans called Big Gas Fans in the roof. Everyone always looks there's no way that company is called Big Gas Fans, I said, I swear to God. A trademark had to be an interesting process where the government. You know, it's so great for us is that that's now in as original equipment. Every other arena in the country to deal with COVID and COVID related situations has to rest profits.

So again, thanks to Tim's vision, we spent the extra money up front to make sure we had the best air filtration systems in the world. Tim, what's your favorite part of the arena? Uh, these acoustical panels. You you so see the wood right there, go look at it real tight, and when you get up close you'll see they have holes in it. So we trapped the base and the rever from bands and so it makes the

building acoustically perfect. So when you come here for a concert, it's gonna be spectacular, because that's an issue with some places, some large venues where you go see a concert. Yeah, yeah, they fit a lot of people, but it doesn't sound good now. And so when you think about the amount of money people are spending on that night out, it's unfortunate if they sit there and hear the concert twice. So what you want is you want a perfect bowl. So my partner in our company's earning as off. He's

the largest manager in the music business. So when when you have Don Henley as your engineering critique on your acoustics, you better make sure your acoustics are perfect because Don's pretty demanding. So, Jim, that's what you really did that no other arena had ever done before. He went to all the rock acts, he went to all the rock managers, He went to the musicians and said, what do you want the building, and they all said, geez, no one's ever asked us when they asked for free rent first.

But the bottom line is you've got input that very few people have gotten from arenas, and that's why the acoustics are so great here. So interestingly enough, this building as a loading dock that's the largest on the East Coast. We could do sixteen semitrucks at the same time, So if you think about it, at the Garden, you gotta pull up a ramp and it's one truck at a time. At Barkley's, you go into an elevator and the turntable turns the truck around. Here we do sixteen trucks at

one time, eight that could be unloading. So between the acoustics, the largest lower bowl, we have a locker room facility that is only for music artists. So that's the first one of those that's ever been built on the East Coast. So when an artist comes in here, they get in and produce quicker, cheaper. They got their own compound. The compound is beautiful and the acoustics hopefully will be great. Hey, Tim, John, we're gonna come back in just a moment. Hold that thought.

I know you got one. They're done. You listen to Bloomberg Business Week, Carol Massr, Tim Stenevik. We're coming back in just a moment. This is Bloomberg Business Week with Carol Masser and Bloomberg Quick Takes. Tim Stinovic from Bloomberg Radio. Let's get back to you. Uh, we've got John Ladeckie of course with us and Tim lie wacky. I keep shooting that. I just realized your partner's name is more difficult than mine. I'm glad to meet another Tim. You know,

it's not just two Tims here. There's a third Tim over there. Last name. Come on, man, come to the dark side, John Lindecki. I think that it would be a great law firm. Lindeck And so for me, it's Friday, and it's so Friday. So John, what can we expect for the team this year? You guys are doing well the fancy mappy Oh well, we had a great run last year. We had a run to the final four. Two years in a row and um. Every year presents new challenges. Thirteen games to open the season on the road.

The objective was trying to be around five hundred. The team came through with that and now we get the home cooking going. So four games in a row at home against great competition and the place will be rocking tomorrow. You know, you guys are business guys. Amazing to see tickets for an Islanders game going for twelve hundred, fift hundred dollars opening night, and I think that's we're so sold out. The fans who this building really represents, they

sold the building out. They came and took all those tickets for the entire season, So we're sold out. John, talk a little bit about the fan experience here and really how you guys thought about that when it came to designing the home for the Islanders. Yeah, it really is all about the fans. Is all about inclusion. It's about being able to go to the Heineken bar and

you don't need a haul pass to do it. Um. You want to play with a crack and you can play with a cracking and hearing that gentlemen, Um, And and at the same time, for those who want to do business, celebrate a special occasion. We have everything from special clubs to a speakeasy that will be opening later, which is so you you feel like when you're here, it's an experience. It's about gatherings. You can see how people could just gather in different tables Disneyland for adults. Yeah,

that's what it is. It really does feel that way, very different from other arenas totally. So we have two patios here. So one of them is the Heineken Bar, so it looks out at the racetrack and the paddocks across the way at at Belmont Park, And if you think about it, the others can't do it because they were designed around railroad stations and train tracks. That's the

brilliant heres. We had four forty acres to build a campus out and we weren't restricted and didn't have to compromise on the fan experience because we got to design the building perfectly because we weren't trying to squeeze everything in. How did you know what the fans wanted at this point? And talked to four fans a night at every home. Will you play with them? I don't, I don't, I

don't sit in the owner's boxes. I have nothing against owners in the owner's box, but if you're building a new building, you have got to hear what the fan who's having the experience wants. And Islander fans are have a great reputation for speaking their mind. How long Island is right, everybody's got an opinion. So I got hundreds of opinions each night, wrote them down, and then we went to all thirty NHL arenas, trying to borrow the best of breed. And then we have the maestro here,

Tim Lawick. You put it all together in a mixer and outcomes this great arena. So give me an example of of something that you learned from one of those conversations that we see here. You know what, twenty five minutes at the Nasau Coliseum to use the bathroom unacceptable. More bathrooms than any arena in North America, I think any building maybe in North America. I noticed as I walked around there's like bathrooms everywhere well, and more women's

bathrooms than any arena, and they're beautiful. But the bathrooms, by the way, the women's bathrooms here are the most beautiful bathrooms in the arena businesses. Now, let's see what happens after Metallica and see if we can still preserve them, but we're hopeful. Um and then and then of course minutes five minutes for a cold, disgusting hot dog. And now we have everything from grabb and go, which is great because the fans want to get their food and

go back to more Hote cuisine. But the most important thing is every bar can see the ice or the concert right. So important because how many times have I missed a goal trying to get a beer for a buddy when I was a fan. It's so irritating. So now you can actually turn around see the play. You also have it on TV screens everywhere, more TV screens, I think than in the arena as well. Maybe we can also find someone to get you a beer at one in these games you might not have. You get

your own beers these days. Well hopefully hopefully the fans are happy. But I'll tell you, I'll tell you what Tim says, which is John, it doesn't matter. You could have the taj Mahal. Someone is going to find something and we just have to get through the first few weeks. Now, did I hear that you guys are gonna be carbon neutral. We are, so I feel very very strongly were carbon neutral at Climate Pledge Arena, and a lot of the credit goes to Jeff Bezos and Amazon. He really helped

us figure that out. We are actually now in the in the middle of creating a new company called Goal, and Goal is going to go help every building figure out how they could be more sustainable, and then we're going to come along and every year great them and give them a certification process. We this industry. We're not going to go solve the problem of global warming, but we could inspire, and that's what music and sports have always done. There is no more important issue than that one.

And if we on the East Coast could figure out a way to build an arena in New York and go carbon neutral, that's going to have a huge impact on fixing this. That's crucial because I think West Coast is easy. People are kind of people don't understand that it's almost impossible to be carbon neutral on the East Coast. Why is it? Why is it going to take two years from now to do that though? Why couldn't you

do do that from the ground. So actually I was just talking to the governor about this, so one, we have to know where our energy comes from. So the electricity we bring into the building has to be metered so that it's renewable energy, solar, our wind in particular, and unless the power company could ultimately tell us where that's coming from, then we may be getting bad electricity

coal for example. So what what we're working now with the state on is how we ultimately can qualify and quantify sustainable energy and power that we bring in here. You gotta get rid of your gas, so we we have gas in this building. We have no gas in the building. A climate pledge arena. We gotta figure out

a way to go use that. You got to recycle your food every night and get it back to the food banks, so that you you got to go buy of of everything you're going to see in this arena that we serve is made in the region, because then we limit transportation and then eventually for the people that, yeah, the people that are driving here, we're gonna have to get carbon credits ultimately to deal with the emissions of all of the cars the park here. We'll have more

power charging stations here. Yeah, it's it's actually quite remarkable that we're going to have you could take the fleets of electric vehicles at Lagardy and JFK overnight. They'll come here and they'll charge up overnight, working with a company called Xcel Fleet Simbol XL Littenberg Radio. I always wanted to do that. Anchor on vacation. I'll come in and vice versa. Right, work for whatever the minimum. I'm out next week. So okay, we have an empty chair. Okay,

I'm ready to go. Absolutely, Timmy, you did a deal with Spectrum. We just want to squeeze that in. Yeah, we just closed the deal this morning with Spectro. So now we're in the food and beverage business and we have over three hundred facilities to join the OVG family. So we're really proud of that partnership. We're really excited to grow. And now we're the second largest facility management

company in the world. And he started out one guy and now his company is worth literally billions and billions of dollars. It's unbelievable what he's accomplished in the last six years. What's the next thing you two do together when go have a beer? Go Ahindun, let's go right there. I've been staring at the whole interview check our subs. Hap. Yeah, that's exactly right. Okay, that was too shameless plugs. That's okay. You can do as many shameless plugs and you can

come back anytime. I wish you could thank you. Happy holidays arena. We're really proud of Okas's good luck with this, good luck with the arena. We really appreciate it. Tim l Wicky and of course John Ladecki here at the UBS Arena in Elmont, New York. Folks. Coming up next, we're gonna continue to track the markets for you on this Friday, do a little bit of talk about inflation and the Fed. You ready for that Harry Style show. I'm actually yeah, I am so ready for my two

old friars. Now for Harry Styles. All Right, you're listening to Bloomberg Business Week, and this is Bloomberg Radio. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes. Tim Stinovin on Bloomberg Radio. Yes, indeed, everybody, we are live at UBS Arena in Elmont, New York. We're talking sports, we're watching the markets, and here on site with us is Tom Narratell. He's Ubs co president of Global Wealth Management. It's been quite a day. Are

you really super exciting day? It is excited from all the activity. You're running around a lot. They got you got you like working a double today. I think that's right, but it's but you've you've got to have fun doing this though. This is great. It's hard not to walking around here. Um, what does it mean for ubs? You guys have naming rights for the next twenty years a really incredible you know, top notch facility, entertainment, sports, so much is going to be going on. What does it

mean for the for the firm? So's it's really big for us because first, I mean, New York's the financial, sports and entertainment capital of the world. We've got ten thousand employees in the New York metropolitan area. We have over five thousand clients. So if you're going to do a deal like this, there's no place you're gonna do other than New York. It's just hard to find them. So this was really just a unique opportunity to work with the Islanders and oak View Group, and we couldn't

be any happier about how it's turned out. What's the analysis that goes into making it worth it. I mean, this is a significant investment, and I gotta ask, what's the calculation that you do so you know that you're actually making an impact and making people people think about UBS in a certain way. So, I mean, there's a lot of marketing research that goes into it, taking a look at your your brand familiarity and how's that ringing

with your key segments. But the key on this one really is, you know, how do you feel you're you're going to get the extensions of your brand in that And that depends a lot on your partners. And I can tell you what I see and the way our partners have spoken about it from the very beginning when they talk about UBS Arena, they're always adding in something

about our value proposition to our clients. And so having the right kind of partners that know one to talk about your brand extension, that's a critical part of it. The financial calculations on it are you know, you can do the classic what's the value of an impression? You know, what's the value of that logo? Every single time the camera hits it when ESPN is showing the clips? Uh, And from that standpoint, you know you can get to a place where you can get you can feel comfortable

about it. But at the end of the day, Um, for us, another big part of it was social media, which we think, you know, as we talked to uh, the Islanders, talked to ov G, it was a lot of how do you plan on using social media because that increasingly is something that's that's the way things are

gonna get reflected. Uh. And we've been happy even just in the just in the short period of time that we've been working on the arena and we've gotten a huge amount of awareness just from the social media accounts. Now we're going to hit you know, a team comes out on the ice, you know, maybe it's the l A King's and they're gonna play here, but everybody in l A Is going to know about ubs Arena, and that's hits another client base for us there as well.

You really got that from Timlwicki and John Laucki, who we just talked to, who are just a fun duo to set down with. But you do feel like that they talked to musicians in terms of the entertainment aspect of it, to the Islanders like what they needed, and really talked to the fans about what they wanted in terms of an experience, and that whole idea of social media.

I mean, this is what a younger fan, right, younger fan base is interested in, absolutely, and I think I think the other thing about thinking that them knowing the demographics of their fan base and John, I mean John is the fans owner for sure, right in terms of knowing about the absolutely and so if you look, the experience here is unlike any other arena. The number of you know, clubs like this where fans can just pop in, have a drink, meat, socialize in between the periods before

the game after the game. I think it's just a really unique experience compared to other arenas. Hey, we have to talk a little bit about markets because you know something about that, right, Yeah, Well, I guess that's the other part of my job and it's certainly a big part of our program at Bloomberg Business Week. Um, what are you hearing right now from your high net worth clients? What's on their minds right now? So there are three three big questions on the on the minds of clients today.

It's it's first and foremost about inflation. You know, it's hard for them to get away from it. It's it's the price of gas. It's you know, hearing all the shocking headlines about how much is the Thanksgiving dinner going to clutch you more of the network even so well, in other ways they see it as what do you mean when I'm going in and buying a new car? You know, I'm not bargaining down sticker price. In fact, the dealers tell me I'm paying above sticker for that.

So they're just seeing and feeling a lot of things. The news, certainly you all cover quite a lot about supply chain problems and so that's bothering them. Second thing is about growth, the questions about you know, what is it as we as we start to see fiscal stimulus, you know, coming down a bit, monetary stimulus coming down a little bit, what does that mean for growth? Overall? A lot of our clients are entrepreneurs, So for them it's am I going to get enough growth in my

business to outweigh the increased cost of labor? So a lot of concerns about growth. And then the third pieces, Man, you you can't have a conversation with with a client without talking about the FED that so what to tell

me what they want? To know what are they going to do and what's the impact of that going to be Because the feds, FEDS really you know, positioned here as as a significant component of of saving the economy and the investors mind and so now it's well, if they reverse that, what does that mean and will we be able to navigate that? So those are the three big questions that they have. Well, I think what's interesting is what you say about concerns about slowing slowing down

of growth. It's not a big topic of conversation, but I think this is where folks are worried about that maybe the FIT makes a misstep of raising rates just as growth might be slowing down, and then you just see it exacerbate. Yeah, so that's I mean, that's not our view. Those are all the fears that around there, and but it's interesting to hear that that's what they're thinking. Absolutely, And we put out our year head report yesterday from our ce IO team, and you know, our view is

inflation will be transitory. Uh, there won't be a policy mistake in the course of that. Clear there's a risk, but there won't be a policy mistake there you are going to see uh, And we spoke about this earlier this morning, Tim where we talked about the two halves in twenty two, where you know, the first half of twenty two is going to have that that continued growth momentum that we've seen in two thousand twenty one. Second half of twenty two, it's gonna get a bit more

challenging comparisons year over year, gonna get tougher um. But that's going to be the place where you know, investors gonna want to start to think about maybe more defensive sectors like healthcare, you know, as as an example. And then there's always when you get volatility, it's well let's take a look and let's think about about longer term trends. So we've got The CIO team had a really neat phrase that they used. It's it's about the talking about

disruptive technology. It's about the A, B, C S and five G. So it's it's really about thinking about AI, big data, cybersecurity and five G. And there's a five G such a big deal. People look at their phones. Now, we walk down the street, we see that five G and we'll take the five G revolutions over. It's just being in one thing. We wonder your high net worth individuals, how often are they asking you about cryptoton They're they're asking about cryptocurrency quite a bit. UM. We're now we're

not always telling them what they want to hear. UM. So you know what we're telling them is is really the blockchain technology and and the fintech ecosystem behind that. That's the place to play. Okay, So how how are you giving them exposure to that space? So a lot of it, a lot of this gets into UM private equity and venture capital, and so it's about picking the managers who are going to explore that space. They're gonna have multiple bets, because making a bet on on one

cryptocurrency or another, it really is a bet. And and that's you know, in our serior year head report, that's the way we phrase that. If you want to make a bet, do that, but don't make a part of your asset allocation. As a wealth manager management client, So what is the way that you give your clients access to private equity adventure capital? Yeah, so we work, UM, we work with the the industry's top two quintile managers and private equity and VC and set up feeder funds

for them to participate UM. And a lot of that is is picking picking the right relationships and the right managers over a long period of time. And and what you'll find you need that expertise and that diversification UM because and I mean, if you look at VC investing, you know, the winners are great and the losers are painful, and the probability of loss is higher. So you need you need the right kind of expertise to be picking

the right place. Has it been harder because there's so much money out there kind of chasing ideas right now it's getting a bit pricier for sure. You know, evaluations are certainly getting a little bit more stretched. That's where you need a bit a bit more expertise. But at the same time, you know these trends when you look at you know, for us AI, big data, cyber security, in five G, there's a lot to run. And as a matter of fact, while we're sitting here in the arena,

you know, Verizon is one of our partners here. What they're gonna do with five G in this arena is amazing. Tom, We've got to run. Thank you so much that I'm really pretending good luck with this. Oh thanks great to be here. It's a really fun thing. Tom Narritill, of course, UBS co President of Global Wealth Management on site at the UBS arena. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes Tim Stinovic on Bloomberg Radio.

All right, so some comments out of the final day of the Bloomberg New Economy Forum in Singapore. That was from former Secretary of State Hillary Clinton warning cryptocurrencies have the power to weaken entire countries. So let's get our weekly check on cryptocurrencies. Josh Sterling is with us, former director of the u S Commodity Futures Trading Commissions Market Participants Division CFTC of course, you know, the principal regulator

of the global derivatives markets. He's a partner in the financial markets practice at the global law firm Jones Day and he joins us on the phone from DC. Josh, good to have you here on Bloomberg Radio. You know, talk to us about your clients, who you're working with, and what are some of the topics is that they have our need to address in today's environment when it comes to the crypto world. Well, thank you very much for have very much for having me, Carol, I greatly

appreciate it. We're working with clients across the spectrum, from traditional financial institutions to startups to corporates, and they're all trying to figure out one simple thing, which is how will digital assets like crypto occurrencies affect their businesses and allow them to grow. And they're doing that at a time where where I sit here in Washington, d see the direction from the regulators is anything but clear or certain, except that we know more is coming. We just don't

know what that is. It's hard to understand really what is coming. And it's it's interesting because we will cut a lot of us to the news earlier this weekend. Here we are at the UBS Arena in Elmont, but in California, the Staples Center no longer called the Staples Center, right, the naming rights bought by Crypto dot Com for more than seven million dollars twenty years. It makes me wonder,

are we going to be talking about crypto in twenty years? Well, I think so, or whatever will come from crypto, you know, I think we are in the opening endings of a massive change in in the shape and contours of our financial system. I think that you're right. You know, Staples is a is a fantastic company of bricks and mortar company, and now we have a crypto company that's sponsoring an arena.

And I feel really that we are at the beginning of the twenty one century of finance now where you look at blockchain technology and you look at applications of it, whether it's stable coins or decentralized finance, and there's a degree of interoperability and flexibility that fits really well with the way I think people live their lives now. We're more flexible in our lives and our own arrangements, and say, my folks were in the seventies or eighties having the

same job for thirty years or something. It's so it really is something that I think we'll be seeing into the future. I like to say that for my kids, I'm working now to help build the financial system they'll operate in when they're adults. Well, and I do think about as regulators increasingly in policymakers check it all out, you know, what is it that they need to kind of keep in mind, because it's it's kind of the

wild wild West to some extent. Right we're figuring out figuring it out as we go to something right, like, we haven't quite figured it all out. Um, So what is it that maybe regulators, like I said, have to kind of tread carefully about? Sure? I know that when I was in a position in government, I always thought very carefully about not stifling innovation and trying to encourage responsible innovation. Now was a view we shared on the

executive team. And you know, like you, I have heard this term thrown about that it's the wild wild West out there, but you know, I think that's the American frontier by another name. And the frontier is a place where the fortune of a nation can be built. And it's not just in digging the mind. It's and it's in selling that TNT and the donkeys to people that need it. So I guess I've killed that metaphor enough.

But what the point is, Um? A lot is happening, and sometimes, to flip an old phrase, I wish regulators would, you know, don't do something. Just sit there, Let's let the ecosystem build, Let's watch out for and of course try to curb cases of clear retail fraud. You know, people have been scammed into buying tokens the don't exist,

or their money we're stolen. Let's watch for that. But in terms of the bones and architecture of the system, let's let it develop because the millions of innovators out there, no more I think than than you know the hundreds are of regulators here in Washington, d C. What's a mistake right now, Josh, that you think regulators have made in the shore? Yeah, absolutely so. I think my concern is the direction of where we're It appears we're going

with stable coins. And stable coins, of course, are the lynch pin between dollars, euros, pounds again, what have you via currency and digital currency. It's an exchange mechanism and dollar or a yen in a dollar or a yin out. And we have the President's Working Group, a group of of many, if not all, the financial regulators in the States saying, among other things, that stable coins really should be offered exclusively by ensured depository institutions uh F, D

I C insured. And I'm not sure that that's smart. I think that currently the state regulated institutions are doing a good job of this products. On balance, I think state regimes work pretty well. I think insurance companies, life insurance companies are are very well regulated in this country by the States, and so I wouldn't be so quick to give up on the the fifty state experiment, that is the United States and trying to regulate stable coins.

I think the concerns there are a little overblown about systemic risk, and so alright, good to check in. I know, we just kind of scratched the surface. What are you looking at, Funny, you gotta come back, Josh, I gotta talk more. Both certainly helpful, Josh Sterling. He's partner in the financial markets practice at Jones Day there in the nation's capital. Joining us on this Friday. You're listening to Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes

Tim Stinovic on Bloomberg Radio. Well, money has no doubt about it been flowing into e s G, big time global sustainable mutual fun assets hitting a fresh record high. We saw that in the second quarter. Uh and Bloomberg has reported that E s G assets may hit fifty three trillion, tim by making up one third of global assets under management. Well, let's bring in Andrew Lee, Managing Director, Global head of Sustainable and Impact Investing at UBS Global

Wealth Management joining us on the phone. Andrew, how are you good? How are you Tim? How are you Carol? Thanks for having me good doing well? Thank you. Hey. Let's talk a little bit about what you're seeing it at UBS right now. What are clients telling you about how they're thinking about sustainable and impact investing. Are you starting to hear from high networth individuals that they want to make the investments in E S G friendly companies?

We are UM, and we've been seeing this for actually a few years now, right, So we've been pre pandemic, even we saw a lot of UM assets start to flow into sustainable investments. There's a recognition UM that sustainability is important for investments and that people want to start matching their investments with the things that they preferenced, what think about UM and how their investments actually impact groters designing environment. So we continue to see inflows into that.

We actually saw an acceleration of that interest through the pandemic. Interesting, right, so, even as you saw actives come out of traditional investments, we saw continued flow UM into sustainable investments. It's one of the fastest growing areas within UM. You know, our Global wealthf acets for private clients. So the real signal of interest there. Well, it's interesting to be talking to you as we can hear in the background they're testing

out still the audio system here there worked. It worked. But what's what's fascinating is Andrew. We talked earlier with Tim Lawicki and John Ladecki, and Tim talked to us specifically about this being carbon neutral by first aread on the Eastern Seaboard to do so. So you are seeing the private sector, private development continue to make inroads in e s G and really push the needle forward, and it really mirrors what's going on in the investment community.

How particular though our investors when it comes to E s G investments, because do you know this better than most right, not a E s G investments are the same. Yeah,

that's exactly right, Carol. I mean, you know, there is a lot under the e s G or the sustainable investment umbrella UM and it can range from everything from excluding investments from portfolios, to utilizing sustainability factors to enhance an investment process, all the way to the most intentional approaches of sustainable themes types of products for even impact investment, right where clients or investors are trying to make an

intentional measurable difference UM in terms of positive change with their investments. So there's a lot in there UM and I think the most important thing from our perspective is that sustainability matters sustainable and means different things to different people, right, so UM some clients to to some clients, it's more of the latter, To some clients, it's more of the former.

And so, you know, trying to understand what people are trying to achieve with their investments and how they want to incorporate sustainability into those investments and then matching it up properly with the right types of solutions. That's what's most important in the end, because those solutions ultimately have to doever, so every portfolio is going to look different.

So and how do you define the SUS So for US, sustainable investment broadly is any strategy or investment that incorporates environmental, social and governance considerations into UM, the into the process, and into the strategy of the investment itself. So there's got to be some objectives, some something that is in the strategy or the investment that is about sustainability. So if you think about, um, you know, one one one exposure might be sustainable fees, right for getting exposure to

climate themes or healthcare education. A distinct strategy might be, uh, you know, investing in the equities or bonds of companies that demonstrate leadership on environment and social and governance consideration, so how they run their businesses, not necessarily the products and services that they're delivering, right, Um, So a range of different things in there, um, But for us, it's about the intentionality of the strategy and the fact that

there is a sustainability objective in there. That for us is sustainable investment, but incorporating it throughout the process and the strategy. Um, that's how we define it. But there are a range of different strategies and instruments underneath that. Yeah, and we feel like it just continues to develop every day. Andrew, thank you so much and and hopefully we can come

back to you at a future day. Andrew League, global head of Sustainable and Impact Investing at UBS Global Wealth Management with us on the phone in New York City, and I often talk about the different metrics that perhaps are needed when it comes to us G because we are just wrapping up earning season, and we see companies move in the after hours trading when the company reports guidance that miss expectations or top line or bottom line growth that missed expectations, and we don't see it move

because of concerns exactly. And you do wonder where this ultimately goes and if there's not some kind of financial penalty or measurement um, do investors really ultimately care when it comes to a particular company. Yeah, but you let me drive. Oh no, no, no, no, this is not a toy home hone, Please, I'll do the ride gravels. I want to drive. It's good question, d. This is the drive to the globe to well driver up down

on Bloomberg Radio. All right, let's get to it. We've just got about ten minutes to wrap up the trading day and the trading week and definitely a down day, certainly concerned about COVID once again, and we're seeing that play out in the equity markets. With us for the drive to the close. Is Slita Marcelli, chief Investment Officer America's UBS Global Wealth Management, on the phone in New

York City, Sealia. Good to have you here. It's been fun, uh, chatting with some of your UBS colleagues here at the UBS arena. What's interesting too, though, is, yeah, we talked about the arena, talked about what's going on in the environment. One of the things top of mind is the next FED chair And curious what's top of mind when you when that topic comes up for you? Yes, hi, Carl, and I'm great to be with you. Uh, it's certainly

top of mind. But look, you know it's it's the FED chair seats that is going to be determined, but also there's gonna be up a couple of other seats there. We actually don't believe Biden. Um, you know he is going to a point a bunch of super dome could they fed board? Um, you know it is you don't believe that. You know, that's not our base, the base case. I mean, like, look, it is very comfortable politicians to prefer, you know, central backers to promote economic growth by keeping

monetary polls to loose. Fust. I think under the current circumstances, that strategy could be contraproductive for President Biden, you know, given that inflation is high and we'll weigh on his approval rates. So our base is actually that he would reappoint Powell. Um, and Powell had re repeated. He said that said will act and I see useful to train an inflation and inflation remain sustainably high. And I think

markets will likely be comfortable if he stays on s chair. Uh. You know Powell has also thrown by parts in supports of means to be easily confirmed by the Senate. Okay, but but what if he doesn't an apologies again to to you and our audience. They're doing some sound checking here. It sounds like a UVS arena. But what if he doesn't reappoint that chair Powell? Okay? So you know I

would think the other choice. You know that it's being the fast A lot is Granner, right, And I think that she's seen by some as more dovish than Powell. But in argue, actually she's not that far from the Stanton amongst why I'm seeing members. I mean, she really hasn't um, you know, defensed uh, you know from Powell on money taire policy. You know she has it. I think practical approach and I think monter polity continue would continue if she were to be the next picture. However,

where there's a clear policy difference. I would say between you know Powell and Raynard is on bank regulation, right, So if Biden's to you know kee Powell, uh, you know, then we would expect him to appoint Brainerd as vice chair Force the provision giving her extra responsible toto a bank regulation um and then we should expect to see sometimes regulation in the years. So if it's between it so, but then I think we're still seeing a continuation on

one term policy. It's also the other things that we have to speak about. So is it in terms of who is at the top of the bed or composition

of the FED. We know it's academic to some extent, there's a lot of conversations that go on with all the dead members, but who's ever at the top will be the same in terms of the impact on Main Street as well as Wall Street, or could a different FED head have some different implications for Wall Street versus Main Street if it were if it's a little hard to you guess, but if the fetcher or to be someone from the main Street that no, no, no, what I'm saying is in terms of who and forgive us,

we are at the ubs arena and they're still finishing touches and they are checking out the audio system here. UM and I know our audio makes complicates our audio. But in terms of who is at the top of the FED worserve, whether it's Brainerd or Powell, will that potentially impact let's say, Main Street more than Wall Street? In other words, couldn't have some different implications for those two different groups, if you will, um, I you know,

I don't. I don't think so we don't see that much of a difference um between the student terms of you know, you know, perception from monitory policy. But again, I think Powell has been in the street, He's been

uh tested. I think he certainly does have UM, you know, I think, for example, from the progressive perspective, right, even though there has been some um, you know pushback because he you know, in terms of UM his reactions inflation, I would say that he's certainly emphasized issues that are important to UM democrats, like taking a broad view of the first mandates to promote and you know, maximum employment,

as well as promoting diversity within the fatty stuff. So I think, you know, UM among you, I don't think there's going to be that much of a difference in from the perception between the two. But I think Power certainly has the incumbent um, you know, advantage, and he's already tested, it's already know his people. I think that I think people are comfortable with his style of communication as well, so um, you know, I think, you know, uh,

it would be more in his favor. Selita Martelli, we are going to have to leave it their chief investment officer of the America's at UBS Global Bolt Management. Again, apologies, Dr Wrap you just a little bit early. And to our audience right now again we all live from the ups arena, and it appears there's some sort of sound chet going on, um that is relatively low. Thanks for

listening to Bloomberg Business Week. Download the podcast on iTunes, SoundCloud, or Bloomberg dot com, and you can also listen to our radio show at two pm Eastern on Bloomberg Radio or watch us on YouTube. Search to Bloomberg Global News