FAA Outage Grounds US Flights

or Bloomberg dot com. You can also listen to our radio show at two pm Eastern Time on Bloomberg Radio or stream US live on YouTube and Bloomberg dot com. It is one of our most word stories on the Bloomberg Today. It's about the nationwide halt and airline flights across the US this morning. This after the FA paused takeoffs due to a system outage of a key flight system. Airline shares is abigail mentioned are doing okay? But wait,

do we need to be worried? I gotta say I'm a little worried when there's an f A a a system failure. I mean, this shouldn't ever probably happen. With some perspective, let's bring in Bloomberg's Creed Gupta. She's on the ground at LaGuardia Airport in New York City along with Allen leve and he's Aviation Safety and f A reporter at Bloomberg News on the phone from Washington, D C. Creedy. Let's kick it off with you. Looks pretty quiet, pretty

come behind you. What's the latest regarding the disruption this morning and what actually caused the problem? Yeah, well it is pretty quiet, and I have to say though if you go to a different terminal you might see a little bit more chaos. And remember this all really started overnight when you did have, of course, the system wide outage coming up at the f A. The system called the No TAM system essentially the Notice to Air Mission system.

It tells things to personnel and to pilots, things like runaway conditions, construction obstacles, bird hazards, even those are the kind of things that they need to know to make sure if a flight gets off the ground safely, as able to ground safely as well. So essentially the absence of that constant updating of information creates a pretty scary environment to operate. So of course we did see as

a result six flight delays around the country. Of course, grounding of all air planes for about two hours this morning and about a thousand flight cancelations as well, something that the likes of United Delta Southwest are still kind of playing a little bit of catch up to. I love and come on in here because you cover the f A for us at Bloomberg News. Tell us everything that we need to understand about the no TAMP system, which I think to a lot of people probably hadn't

heard about it until today. Yeah, it's basically an advisory system. The you know, the aviation system generally have to have such a high reliability and high level of safety that they want pilots to know every little detail in advance before they fly to an airport. So if you're doing maintenance on the lights at a runway, or let's say the snow conditions are such that it's a slippery uh,

they'll put that in a notem uh. It Also, you know, if they're launching a rocket into space in Florida, that requires a clear out a lot of airspace, and so they handled that as well in a notem Um. But I do want to make one thing clear that the system that guide airplanes, that keep them separated in the sky, that allow air traffic controllers, to talk to pilots, etcetera. None of those were affected. So this did not in and of itself cause any safety issues that were aware of.

So so yeah, because I have to say, when I first heard, I'm like, whoa, what is it? What is this about? But even so, alan should we assume that this shouldn't happen? Um? I think it's fair to say that everyone from FA to the airlines would say that this shouldn't happen. Um. There are quite a number of questions that remained to be you know, you know, what level of backup they had? Did the backup go down? Um?

They certainly have some backup, but was it an instantaneous backup or did it take him an hour or two to get the backup up and running? Um? You know,

a lot of that is just not clear yet. Hey, Creedy, you've been there throughout the day, So give us an idea how how things have shifted and if it seems like, you know, travelers are still disrupted, because as we learned very recently with Southwest, if there's a you know, widespread delay, then things happen kind of like dominoes, and it takes a long time for things to go back to normal.

Well's that domino effect that's really the worry here. The idea that a lot of the airlines are kind of assuring travelers that this is going to be something that was going to end by nine am Eastern, then it was going to end by noon. Then you actually had a lot of the major transport hubs around the country start to say, well, actually, we're going to need a couple of hours to kind of play that element of

catch up. So now aly are still saying, well, look, expect those delays, expect those cancelations, but it should be done by the end of today. That is not necessarily the case. Now. The thing to worry about here is that does this kind of seep into tomorrow's flight schedule as well. You've heard of that sentiment or at least that worry coming from Delta, from Southwest and from United as well. But once again, that seems to be the big question, how do we even get here in the

first place. Helene Becker, count senior research analyst, told Bloomer TV earlier that look, this is once again a function of old technology that's going to take billions and billions of dollars to renovate and we're just not there. Alan. Is that something that that you see uh in your reporting on the f A as well, that this is a this is an issue of old technology that will take significant investment. So the the f a A is in the years long uh effort of upgrading its entire

air traffic system. And I have to say, generally, uh, there've been glitches along the way more than but the generally the system is far more modern than it was ten fifteen years ago when that was a bigger concern. And and it's generally been more reliable. And so you know now that we use satellite systems to track planes instead of radar, that was a huge switch that started in UM, the computer systems that the air traffic controllers used to follow aircraft are all relatively updated. UM. The

UM it remains to be seen. We're hearing kind of contradictory information about this specific computer system that runs a NOTEM program, whether it's new or not. UM. You know, it clearly shouldn't happen, and we'll have to figure out why uh later on. But but and you know, and any time this happens, there's going to be huge calls for change gen all that, But but I'd say my big picture of you watching this over the past decade or two, the f A systems overall have been modernized,

relatively speaking. Hey, just quickly got about a minute or so left to both of you and Creedy. Let me ask you first, Um, can we should we rule out that this was a cyber attack? Well, that is what's the Biden administration is saying. But then Peter Boud excuse me, the Secretary of Transportation, came in later and spoken to other outlets and said, well, look, we can't rule out anything yet. They are creating a white scale investigation. So no for now, but of course we have to stay tuned.

Frought date, Alan, what are you hearing on that front? Um, the same thing, But I just point out that most of the f A computers are kind of firewalled from the normal types of ways that attackers might go after a system, so the odds are probably lower. But I, I mean, I would rule anything out at this point. All right, Well, that kind of fit makes me feel better, but I like everything to work, like he said, Carol,

Like Alan said. Nothing in terms of the way that pilots communicate with each other or with air traffic and trains around the ground. Yeah, that was a good thing, all right. Allan Levin Aviation Safety and f A, a reporter at Bloomberg News joining us on the phone from Washington, d C. In a creaty group because she's been out there at LaGuardia Airport, New York City. She's anchored markets

correspondent here at Bloomberg just following it. Airlines they're just up shy of one percent here, so they're doing okay, doing better than even the markets. On a day we we're seeing a rally the S and P five hundred at eight tenths of one percent. The nastack up one point too. All right. You are listening in watching Bloomberg Business Week on this Wednesday, Carol Master Tim Stanovic. This is Bloomberg Radio. These sees Bloomberg Business Week with Carol

Messer and Tim Stanovic on Bloomberg Radio Newsia. Bloomberg Business Week at newsstands tomorrow, some of the stories already on the Bloomberg and online at Bloomberg dot com. Slash business Week. It is the year ahead issue covering the major trends, disruptions, breakthrough products, so much that are coming this year in and it compliments next year's Bloomberg Live event and Davos happening as the World Economic Forum hosts its annual meeting. There.

One section in the Year Ahead issue was all about the consumer, everything from starbucks unhappy New Year to Hollywood's comeback here and more with a round up. Here is a Bloomberg Business Week Assistant Managing Editor Jim Ellis. He's right here in our Bloomberg Interactive Broker's studio. Jim, good to see you. Um, the Year Ahead here we are here. We didn't think it would happen. He made it here.

Inflation is still here. And there's some stuff that we you know, some themes that we covered a little bit last year. Uh that kind of gave us a preview of what to think about this year. I think to the stories about unionization and Starbucks. So before we get to that, though, UM, talk about like how you chose the stories. Well, actually, one of the things that I wanted to do this year was to uh sort of you know, sort of capture how things are different from

the previous year. And the biggest is that, you know, while the pandemic sort of defined last year, you know, how our sort of come back from the pandemic. This year, um you know, is going to be defined more about how consumers sort of you know, what's the new normal for consumers in other words, you know, lots of things changed.

You obviously returned to work, you know, it's been an issue, but also how people want to shop, how people want to consume, you know, what people are willing to spend on, and the way the consumer behaves is a lot different than than and so we want to capture that. And so we tried to sort of take a look at a number of areas. You know, one I was obviously entertained. It was travel because it's something I love, but it's also something that was really really knocked during the pandemic.

So I knew that was something we wanted to get into. And also there were a lot of management shifts that happened over the uh pandemic period, and a lot of it was because of the way the consumers were changing what they wanted to do a good A good example that was Starbucks simply because China was a big piece of its business. China was going to do, um, you know,

not behave this year the way it did before. And also they were involved in a unionization drive that really picked up steam, you know, over the course of the pandemic, so that I knew it wanted that in there. So I went sort of just trying to choose things that I thought if I was a consumer, what would I

care about? Now? I love that you guys say when it comes to starbuck in the section Starbucks, excuse me, could really use some caffeine this year, And well they're getting it in the likes of bringing back Howard Schultz, so connected obviously with this company. It's like the old leaders are all coming back Disney Tiger, but tell us, um, they've also got what another They've got a new CEO who's coming in, Um, who will work with Howard Schultz.

We'll see how that works out. But I think, oh yeah, so, um, you know when he's coming. He was the former CEO of rek It. And the thing is that, you know, he was very he was successful there. The problem is that it's a very different type of business. This is a this is a true consumer business that sells and you know, sort of sells food and drink in restaurants,

regor sells you know, condoms and and other things. But um, it's a sanitizing, sanitizing, and yeah, but I mean it's consumer products, but they're not the same thing as selling at retail, and so that's the real challenge. He's gonna have to learn that job at the same time that it has a big, big challenge in unionization of its stores. And also China, which is its second most important market,

is still not back to normal. That's also supposedly the big growth market of Starbucks, and they hope that, you know, they're gonna have nine thousand stores there or something in a few years. You know, that's gonna be a real lift, given that China is still not fully back from the pandemic, and this guy has to figure out how to pull all this off at the same time that his predecessor,

Howard Schultz, is still remaining on the board. And often founders, you know, sort of they tend to be sort of hands on, and especially a founder like Schultz, who has already, you know, had the CEO's job three times. He's already gotten rid of two people before. It's a good point. Hey, I gotta talk planes because I know Tim's really into it, but I'm just thinking, you know, you mentioned the importance

of China China. Obviously in planes that's important, I mean jumbo jets important kind of, I feel like, to all the carriers. Well, but we previously thought they were no longer important. He said, Oh my god, jumbo jets they got four engines. They you know, they gobble up all

this fuel. So therefore we moved beyond that. And so we saw all these new sort of what they call new generation planes, the UH seven seven have an X, the A three fifty I mean planes, and the Dreamliner planes that were supposedly able to do with two engines everything that the old jumbos like the seven forties seven

and the double decker A three eighty could do. And the problem is that, um, you know, we've sort of retired a lot of those planes, and now demand is jumped back and they say like, oh my god, we need we need big planes, and we need big planes with big first classes. And he say, like, why does that matter that much? Well, it matters because the first class seat can sell for seven thousand dollars, and that's one way that's not around trip, and you make a

lot of money in the front of the plane. People always talk about business class, but you started forget that for a lot of long haul careers. That's still the first class business, and they've been surprised at how fast that business has come back, so they want to get all these planes that have a lot of first class seats back up in the air. What's really surprising to me is that it's not necessarily a short term thing.

I mean, you guys write the Thai Airways, which in that it planned to phase out those double decker Airbus A three eighties. They're pulling a return of the A three eighty, but not until only four Well, part of it is that a lot of people parked their large airplanes. They thought they were going to retire them, so they

parked about in the desert someplace. They've know a lot of them just have not kept up with the planes, and so it takes months for these things to come back, and if you really haven't taken care of it, it could take you a year because often have to be refurbished and they're putting in new interiors. A lot of these planes have not been well kept from the pandemic. Alright, plane skipping trains, automobiles, the used car market man that was on fire during the pandemic and right after and

now it feels like not so much. Yeah, I mean, used cars were a real sort of boom time during the pandemic. What happened was that because the new car business UM was really constrained because of chips, because of the shutdowns and auto plants and different parts of the world, UM prices went up on new cars because there was no you know, there was no supply. And what that meant was a lot of people couldn't afford new cars and so they said, okay, I'll buy something on the

US line, and that sent used core prices soaring. The problem for the used car business now is that in the last you know, six months, you know, new cars have come back. You can get them on the lots again. You don't have these long waiting periods, and so the prices of youth have dropped. And what that means is for people like CarMax and for car Vanna, people's business

is heavily skewed toward that. You know, they suddenly are you know, they don't have the demand, but also the values of the cars that they have have in stock are dropping. It's such a one eight. It's a great story. There's more in the magazine and also online. There's also another story about Hollywood hoping for a return to the old normal, so we highly recommend you check it out in the new Year Ahead issue. Jim Ellis, thank you

so much, Assistant Managing editor of Bloomberg Business Week. Here in our interactive broker studio, you're listening and watching Bloomberg Business Week. That new issue out on newsstands, online at Bloomberg dot com and always on the Bloomberg terminal. This is Bloomberg Radio. You're listening to Bloomberg Business Week with

Carol mess Here and Tim Stenovic on Bloomberg Radio. Well, we keep hearing from many of our guests about how investors need to keep an eye on the bond market for where the economy, US economy and Fed policy are going. Bond market trading often like the Fed is getting ready to stop raising rates and possibly even dear we say pivot, meaning cut rates. But monitoring and writing about it all NonStop.

Is our next guest. She's a member of the family. Yeah, Bloomberg News Chief correspondent for Global macro Markets, Liz McCormick is back with us. She's Her story today is among the most rot on the Bloomberg terminal, it taps into the dreaded FED dot plot and why it's confusing markets. Liz joins us via zoom from New York City. Liz always good to chat with you, especially when it comes to everything you know related to dot plots and what

the Fed is going to do with rates. But what's the mixed message here or is there not even a mixed message? And traders are just kind of like grappling onto whatever positive news they can. Well, I guess it's like they're grappling onto some of the bad news right that the economy is slowing down. The good news, I guess as they think inflation is peaked. But but yeah, it's like the FED keeps saying, you know, Craig and

I wrote that story. We're saying, it's like a total full court Fed press, like we are not going to cut rates. We have more work to do. Look at our dot plot, which is they're kind of projections for rates that show no cuts this year, and the market just saying, okay, whatever, we're we're doing what we think. And you know, I mean literally last week in the minutes they said we're not going to cut rates totally. That's what I'm saying it is like a clear full

court press. But I think you know, that's why I mean all joking aside. Craig and I've been around maybe too long, but we thought, you know, we remember I said. Part of the problem is that the FED officials themselves in the past have said, I kind of don't focus too much on the dots. It's just our forecast. It's not a projection for sure policy. And now they keep you know, of course they're saying things too, but they're they're also pointing to like our dot plot is a

good projection of where we're going. Um, So I think markets are kind of jaded, like number one, we've heard you downplay these before, and number two like all economists. But the FED has kind of been really wrong footed in some of these, not just the projections on the dot plants, some of their economic forecast where they saw inflation, of course didn't pan out. So I think these investors, these traders are a little bit like you know, I've

heard this before. I'm seeing signs that we have a slowdown coming, I think, and maybe they're wrong to think that the FED ultimately is going to have to cater to the economy, which is like history. But as you guys have talked before, if inflation stays too sticky, the FED has no choice. They will have to stay high. So it's gonna be interesting to see, like we talk in a six months time, what what's really panned out? Right?

I feel like Lizzie, like you hit it. There's such diversion between what we're hearing from the ED saying they're going to do, no doubt about the message, and then what you see plays ob certainly in the bond market they think, you know, the FED is gonna you know, and I don't know what how much of it is? Like you said, hey, Fed, you've gotten a lot wrong. We're the bond market. We're figuring this out and it

will be interesting. How much do you think tomorrow's CPI report could help the bond you know, could could change that or be reflected in the bond market about whether or not there there's more of a buy into the FED and what it's saying and the dot plot. Well, at first, I want to make a joke. I heard Doug saying it's the day before cp I. I I was waiting for like the day day before Christmas exactly. That

would be more fun. But no, I think I think Carol, you're right, cp I, you know, could change this kind of I call it the schism between the two. If cp I, first of all, if it's it proves a surprising strong number, I think the market is going to think, oh yeah, maybe the Fed is going to have to do what they're saying. So you might see yields pick up.

Maybe we'll see some of that pricing and the derivative market, you know, be reduced saying they'll price out the cuts, but may they may trim down how much um And if it's an uber soft number, then maybe the bond market just doubles down. You know. The Fed officials seem to be which seems fair if you look at history, you know, they they've noted pastimes in and like we all know in the seventies and the eighties when they say policy, if it moved to the reverse course too fast,

they had to come back and do more tightening. So I think they don't want to make that mistake. Um. But in the labor market at you know, as we've looked at with payroll last week, wages were down, but it hasn't rolled over, and the Fed seems to think we not that they want to put people out of work, but sadly that's part of what's going to have to happen, is that we have just too much demand for the

labor that's out there. So I just think cp I may be telling tomorrow, let's see what happens, right, Hey, Liz, you know, going deeper into the markets, which is what we love about you know you're reporting is you understand this market so well. We do it often at you know, the headline level ale and so and so forth, but you dig deeper and in your story yours and Craig tourists as you talk about primary dealers in US treasuries, you know, and they're making of their official forecast as

a group, they are not pricing in rate cuts. And that was a servey by the New York Fed. Right is that an important discussion to be having right now

ahead of CPI. Yeah, I think so, because it's interesting and I think it was Matthew Hornback of Morgae Santon I've heard him mentioned this as well, that okay, there's the market pricing, there's the FED, and then there's a lot of forecasts, which you know, a lot of the primary dealer economists are also saying no cuts this year, right, I mean some are saying cuts by maybe December UM.

But I think maybe that primary dealer servey that, like you said, the FED took itself, is maybe giving the FED solace to say, you know, because of course, Carol, there's like optionality into these pricing of derivatives, you know, like I guess people aren't doing their job as these traders if they're not saying, well, we were hanging out. That's how you price these things. Scenario analysis, we could end up with a stronger economy, FED has to go further.

We could end up with the economy totally falls out of bed and we have a terrible recession. They cut a lot, So some of that is in this pricing. But I think that survey does, you know, show that, hey, there's a lot of economists that lean on the FED side. And that's why I think, honestly, it's a walk card to be honest. Before I got out with you guys, and I always kind of look at what is Anna Wong saying these days. She says the same thing, go

to over five percent. I think about five she's got three more basis point heights and then she says no cuts this year. So I'm like, okay, annimals on the FED side. So that's you know, that's a good support for them. Well, first, this is what makes your job fun, I'm guessing is that you know, everybody sort of has

a different idea. But the other part of this, too, Liz, is that you know, the FED only knows what we know in terms of data, and they've said many times that their data dependent and you know, since the last meeting, we got uh jobs report that showed that wage growth was moderating, and investors certainly latched onto that. But each piece of data kind of gives them a different idea

of what their next move is going to be. And and maybe indeed we are seeing some of the core issues that j. Powell and the FED are concerned about starting to alleviate a little bit right, And of course they they have they should be data pendant, like you said,

they said they are. And I was talking to someone I won't say who yet because I'm trying to write a story, but a long time investor today and I was saying asking him the same thing, do you think the FED is going to really do what they're saying, and he said, I think now that's what the FED thinks they're going to do given the data they have, and of course if it's six months things changed, they're

going to have to adjust. So and I think that's why the market that they're like, well, we have to kind of think ahead of you, you know, especially the bond market. You know, people always say, hey, look at where the long term meals are. That's a signal of where investors think the accou to me is going, not

just where it is right. So long term rates have fallen a lot in the last couple of months, and I think the market is thinking, you know, the curve is very inverted that you know, whether you know the FED cuts sooner or later, that this recession is coming, we're gonna have a slowdown, and that this you know, they're going to have to pivot eventually this year. So again it's gonna be the million dollar question, like does anyone win? That? Was it? No? No, still a chance

for us. List, there's still a chance. List just quickly about thirty seconds here is it hardest in terms of doing FED policy and for the market's the bond market to understand it. When the FED is getting ready to stop. Well that's what Yeah, a woman, an investor in my story said, and I think she's right. I mean, it's the inflection points. And I'm remembering my old calculus or whatever I used to know. But you know that even

for the FED, it's very hard. It's it makes sense like when you're on a pivotal change, when you're on a glide path of you know, you're easy easy easing, that's like what you're doing, or or the vice versa, your tightening like they have been. But I think it's the it's the inflection points, you know, and and history has shown that that's where they kind of fumble a little. I would say, you know, to be fair to them,

A lot of people do. It's you know, people called the end of the bond bear market, you know, or a bull market years before it ever happened, right, and then finally we got your yields go up. So I try to be fair, but I think, yeah, history does show that they have a kind of worst track record at inflection points. Yeah, sorry, FED, Liz, thank you, Thank you. Liz McCormick's she's chief correspondent for Global Macro Market's APT

Bloomberg News. Her reporting is always a must read. This story by Liz along with Craig tourists and of course Liz joining us via zoom from New York City. I mean, we'll see what CPI does and how it changes market sentiment if it comes in a little hot. I guess the point is, like we talked with Abigail though, do we look at you know, trend or a month over month or do we have to start thinking about where

it was a year ago. That's a good point. At six point five is the number that's expected year over year, um until over a month. Uh, it's supposed to be negative one tenth of one percent. Yeah, so interesting. We'll certainly know in less than twenty four hours time journal. Yeah, but you let me drive? No, no, no, please, ravels. I want to drive. It's a good question. Is the

ride to the closed up on Bluebird Radio? All right, folks, just about seventeen minutes left in today's trading session, getting ready to wrap up the Wednesday trade US for equities, as you heard from Doug, just coming off their highs of the session, Tech leading the way with about a one point four percent gain on the Nasdaq one hundred

in yields. Keeping an eye on the treasury trade ahead of tomorrow's CPI report, that ten year note still at about three fifty four two year note with the yield of for twenty one, So curious to see what our NEXTUS has to say about where you can find some opportunities for that, We turned to Austin Graf, launching his own investment management firm late last year. He's founder and a c I O at Opal Capital. Austin joins us on the phone from book of Ratana, Florida. Austin, how

are you good? Thanks? How are you Tim? Yeah, we're doing pretty well. Thank you. Um, So, give us an idea of what you're seeing when you look out at the markets right now, because investors are certainly optimistic ahead of CPI tomorrow. Yeah, it's kind of interesting right now. It seems like kind of in the short term, the markets are really swinging with each new economic data point that comes out. But we think kind of if you zoom out a little bit, the market will end up

kind of falling in line with fundamentals and valuations. Um. So we're not really sure that investors should jump on board with some of these kind of rallies in the short term, we think they could be kind of kind of false starts here. I do wonder, you know, when you look at and try to get a handle on kind of where we go. I mean, there's a lot of questions still up in the air. There's a lot of folks saying first half is going to be one way,

second half is going to be another way. Um. But having said that, is there any clear consensus at least in your thinking when it comes to an asset class that maybe makes a lot of sense. Could it be currencies, Could it be uh, I feel like at the equities, could be emerging markets. Could it be bonds over equities, Could it be going back to, you know, the historical

play of a balanced portfolio. What is it? Yeah, I think it does make sense to have a balanced portfolio, just because in the current market where you see kind of expectations at two ends of the spectrum, especially if you look at the interest rate perspective. Right now, you've got the market kind of assuming the Fed's going to have to lay off and start reducing rights at the end of the year, while the Fed's trying to keep

a relatively hawkish tone. Um. If you're if you're going to play one end of the spectrum there and you're wrong, it could be pretty painful for investors. So we think, you know, the ultimate outcome is likely to be somewhere in the middle. So it makes sense to maintain a relatively balanced portfolio um and not go too far in

one direction or the other. Austin, I want to talk about some of the companies that you've got your eye on right now, because you did say that you know, these rallies that we're seeing right now could be false starts. Does that mean that, But that still means that you know, you should, you know, get into the companies that that that you're picking right now, including x On Mobile. You still think there's a there's room for x On Mobile to run. Yeah, we think that there's still quite a

bit of opportunity in x On. It's it's a relatively high quality name. And you know, I think a lot of people are looking at Energy over the last called twelve to eighteen months and saying it's run so far already, But if you look back five years, Energy is not anywhere near where it used to be. The other side of the argument is that you know, we're transitioning to a green economy and these companies are no longer going to be relevant. We just don't think that that's the

case in the kind of intermediate term. We think over the next over decades, you know, that might be, I might be the case, but um, between now and you know, the next thirty or forty years, we think these energy companies are extremely relevant, um with less. That's a long runway. Well, if you look at the if you look at the demand for oil and the ability for alternatives or renewables to offset the the demand that is required for oil, it's likely going to take a long time for the

trend to revert. So we think that the marketabile ahead of itself and embedding on some of these renewable opportunities at the expense of kind of traditional oil and gas names. And we think global economies are I mean, barring a dramatic decline and demand, we think, you know, these these traditional oil and gas companies are are going to be around for a while, and they're also reinvesting in their businesses to benefits from some of the new green technology.

It's just it's not going to be kind of a binary. You go from fossil fuels to green. Yeah, we certain that. We certainly saw that over the last couple of years, Carol and mean we talked about all that all the time, right, the idea of an energy transition, and we saw for the last two years, and especially over the last year as Russia invaded Ukraine, how reliant the world continues to be on fossil fuels. You know, it's so funny. I

gotta tell you. Austin, Tim and I are looking at each other and we're like, do we have enough oil for forty years? And I know there are estimates that maybe we have fifty years left, give or take a little bit. So you're thinking it's a play until the very bitter end. Having said that, we're gonna talk about climate change later, and I'm just wondering how much more pressure that might put on um the energy sector. Metronic, though, let's go somewhere else. Metronic is another name that you like.

It's already up about three percent this year, and I'm noticing to a lot of these names that you like, you're talking about some dividend yells, which makes it also a little bit extra attractive. I mean, Metronics three point four percent dividend yield. Yeah, it's a historically high yield for Metronic, which is a best in class medical device company. They've had some missteps over the last basically since COVID took place, with some troubles with product launches. We think

that's behind them. So currently you can pick up Metronic at what is a relatively low operating margin and also a relatively low valuation. We think with the the product launch issues behind them and China reopening and people turning back to elective operations, we think there's there's room for Metronic to expand those margins and also benefit from from

a higher valuation. So we think it's a great time to buy a company that's kind of best in class, high quality that also has some growth in front of it. All right, Austin, we're gonna leave it. They're fun to talk some names if you really appreciated. Austin graph under in chief investment officer launched his own investment management firm late last year. And as we said, uh Faunther and c IO of Opal Capital. Thanks for listening to Bloomberg

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