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I'm Tom Keene, along with Jonathan Farroll and Lisa Abramowitz. Join us each day for insight from the best an economics, geopolitics, finance and investment. Subscribe to Bloomberg Surveillance on demand on Apple, Spotify and anywhere you get your podcasts, and always on Bloomberg dot Com, the Bloomberg Terminal, and the Bloomberg Business App.
Join I guess right now around a table. Chris Harvey, head an equity strategy at wels Farco. Good morning, Chris, Good morning. Would you like to start with the old price target or the newer price target? Because the old price target is forty two hundred on the S and fee. You more comfortable with that than the forty four to twenty that you upgraded.
At See No, we're okay with the forty four hundred right. So at the beginning of the year, what we said is our base case is forty two. Forty four is a soft landing. Doesn't look like we're going to have a hard landing this year, so we just bumped it up to forty four. The range that we think we're in is that forty two to forty six. We think we're going to spend more time at the top end of the range. Right now, we're just taking some froth on the market, repricing risk, and we're waiting to see
when the bond buyers start to show up. All in yields are approaching that five to ninety level that we saw back in October. CPI is down two hundred basis points since then. It looks like the FED tightening cycle is over close to being over. Buyers should start to materialize.
We'll see.
What I find interesting here is you're the single best qualified person to ask this question too. In your ute, you were out in the romance of fifty four degree water clamming in Long Island to pay the bills.
I want to know, and this really works.
Where's your line in the sand with the equity markets right now? Where's the tension point? That's the Harvey line in the sand.
You know, Tom, I'm going to like all good equity stritus, I'm going to shift in politicians. So I'm going to shift because yesterday was really really interesting. It brought me back to ninety nine two thousand. Because what happened interest rates went higher. Old economy stock went down, New economy stocks went up. That was so reminiscent of ninety nine two thousand. So when you ask me for a line in the sand, I can't give you a line in the sand because the markets are not reacting.
There's a march distant from that where there was a line in the sand for all of us, which is oops, how close are we to Oops?
I don't think we're close to oops. What I think is what we're saying is forty two hundred. That's the technical level. We think that level holds. We have to wait for We have to wait for rates to kind of wash out here. There's been a lot of talk about rates, but we think you should start to see buyers showing up, especially those all in buyers, pretty soon.
The other thing we'd like to see is we'd like to see something from one of the FED members saying something about raids in the back end, because I don't know, maybe maybe John.
Said this before.
If you look at what's happened to the tenure right since the issue and since since jainat Yellen said hey, we're going to need a lot more paper, real rates have gone straight up and real rates are dried nomenal up. This has not been about fundamentals, and so we may have to wait until November to find out what the needs are. In the short term, we find out November that the needs aren't as bad, then we can find we can find some ground, we can find some bidders.
But in the interim, maybe one of the FED members comes out and says, something we'll see is.
The forty four to fifty call that you have predicated on the idea of rates going down or just staying where they are not moving as rapidly.
Really, just what we need is we need stability. Rates don't need to go down from here. What we're seeing is the underlying fundamentals are still good. We just got through a period where we had a major conference season, we had pre announcements, The pre announcements were pretty been nign and so we think the underlying fundamentals are fined
for now. So we just need rates to stop because if we don't know where the top and rates will be, we don't know where the bottom of the equity market is going to be.
That's important, Chris. You don't need them to go down, you just need to stop going up.
That's right.
That's right, Are you seeing signs that take leadership is stabilizing based on what you identified in yesterday session?
I think so. So Again, if we go back to yesterday, what happened. You had a lot of defenses roll over. Right, The defenses are rolling over because rates are going up, untilitates, utilities. There's a lot of leverage and utilities, a lot of leverage in staples. Where are people running to. They're running to uber caps. Uber caps are now seen as that safety trade. If uber caps go up, the market goes up.
So it's not AI or just older the above everything to send the caps right now?
Really everything in uber caps. What we do is we look at the RUSSOL top fifty, right, and you have AI. But really what you're buying is you're buying at a premium of ten to fifteen percent of the market, stable balance sheets, less volatility, better earnings with an AI kicker.
And that's not that when you say yesterday it was buy the new economy, sell the old economy. I thought that was really interesting, which raises a question, are we going to just get more of the same in terms of the dynamic of the Magnificent seven or a basket of stocks that are leveraged to artificial intelligence and the new tech gains really outperforming well everything else, not only but loses value.
I think.
So that's been our call. So what we've been saying is that we thought you'd have a broadening out of the market in the summertime, in the spring, but that was partly because people thought, Hey, the economy's not going to be as bad as expected. What you need for small caps in mid caps to do better is a much stronger economy, and that's just not going to come to fruition. So we do think it's going to be narrow. We do think the uber caps are the ones that that apper form well.
Lesa asked the question exactly where I was, But I would narrow it even further to say technology new economy that's profitable in displays free cash flow versus many of them that do not out in the zeitgeist today Ala Lori Kelvicina is a percent of Russell two thousand is not profitable.
That's not Apple.
Just real quick here, as you're talking about this, we're seeing tenure yields climb through introday high is going back to two thousand and seven. At what point with yields, Chris, do you rethink your assumption.
Well, let's talk big picture on yields. Right, So if you look at real rates, and let's just say we go back two decades, real rates, the high end is about two percent. If you look at inflation expectations to break evens, the high is about two and a half. You've gotten above that, but not for a sustained period of time. I think maybe back in six oh seven, So two and a half plus two as best I knows, four and a half. We're in and around those levels.
Now we get to five, well, the components start to then all of a sudden, what we've been seeing is real rates going higher. Now the back ends a lot more restrictive. That's going to weigh on the economy. Ultimately, that's going to sow the seeds of bringing it back down. We can get to these levels, but what's going to happen is it's going to slow down the economy a lot lot faster, and then things will come back down once the economy slows down.
Hey, Chris, this was awesome. It's going to see you basically of West Faco on the Secretary Market.
This is the interview of the day for Global Wall Street on where we are with bills, notes and bonds.
Robert Tip out of Berkeley.
They had a shingle out at First Boston a feusions few years ago. Definitive at PGEUM fixed Income chief investment strategist, Robert, Why is this moving bonds different than the other eighteen you witnessed.
Well, there are similarities in their differences.
The thing that you don't see very often that we're seeing right now is a change paradigm. We were in an environment for a decade post financial crisis posts European peripheral crisis, where the central tendency for the tenure Treasury was two and for the Bund it was around zero. And I think the Fed, you know, is looking at the data coming across the transom. They're saying, we need to be at five plus and we're comfortable up and
around the zip code. And I think that's because they are looking at the data and the data is telling them that, you know, four is the center of the range and then need to have policy a little bit at the restricted end of the range until they get inflation down. And the SAME's going on in Europe where they're going to be engineering a higher interest rate environment. This is the end of the financial crisis, the end of the peripheral crisis, and return to more normal level of bond yields.
I look at what PGUM does crudential, your work with all State for years, and it's about.
A shift in the actuarial assumption.
What is the new What does the next institutional pension actuarial assumption look like? Is it two hundred beeps higher from where we are now?
Yeah, you know, I wouldn't worry about about them.
I don't think they ever fully adjusted to the low interest rate environment. I don't think the equity markets adjusted. But I think the financial community will be fine with this level of interest rates, the financial institutions. I think investors, though, in policymakers are getting dragged kicking and screaming to the new environment, especially the investors. The biggest pitfall I would
say in investing is adaptive expectations. There's a lot of distractions with the cyclical noise, the government shutdowns, each economic region being in its own business cycle having differences from the others.
It's very hard for people to wrap their arms around that.
And the FED readjusted they were one of the few institutions that started to believe a two and a half percent nominal FED funds rate was going to be the neutral forever, and now they're, you know, on the precipice is starting to.
Move back up. Basically.
You know, this environment was clear from early twenty twenty two that we could be back in a four or five six percent in straight environment. I think that's the thing that people need to wrap their heads around.
Here.
What you just said there four or five six percent interest rate. Are you saying that the sell off that we've seen in ten year treasuries isn't done and that you see enough momentum and frankly rationalization behind the move that yields could go beyond five percent to even six percent on the tenure.
Yeah.
Absolutely, I think that that's not a base case, right. But if you imagine that the best news on inflation might be behind us, we have energy prices going up. We have a unique situation where high interest rates our crimping housing supply around the world at a time when housing is in short supply. That's a very unusual configuration.
You could get some bad inflation numbers, you could get a signal that higher rates are coming from central banks, and the curve shape is only ready for rates to come back down, it's not really ready for the higher for longer kind of idea that you could, you know as whether that's a one in six or one in three, you could definitely end up between five and six on the tenure. I think it's more likely we're going to head up towards five and then as we go through
next year. Thankfully, the fundamental data is really moderating. The underlying trends in inflation moderating, growth moderating, and in the US less so than in other places, but even in the US it is. This battle on inflation is our economists Tromp Porcelli's fond of saying, is over and we should be seeing the rates coming back down next year.
But definitely, I think we've seen a move in that range back up towards the central tendency round four, and right now fed's not convinced that the cycle's crested.
So yeah, there's upside risk.
Robert, you're talking about the inflation outlook. You're not talking about the fiscal backdrop, which a lot of people say was known right that we're going to have a real big supply of bond sales and not the FED picking up the other side. Is that one of the main drivers, or is this just fundamentally the data has been coming in better than expected and this is an economy that needs a five percent ten year yield, not a three and a half percent one.
Yeah.
I think up until you know the turn of the century, you know, the supply bulges weren't that big. But since the financial crisis COVID, the fiscal situation is huge. Globally, we're dealing with governments that have much bigger guest stocks, much more rollover, and we've just come into the QT period where that means the central banks are no longer coming in and scooping up big chunks of the auction.
So the markets now are forced to think about think hard about where things are every day, and on a day like yesterday, there were no treasury auctions of long term notes and VODs, but I think there's over one hundred billion in bills, so.
There is a relationship there.
It tends to make curves steeper, it tends to make treasuries cheapen a relative to what's the true underlying riskless rate in the market, And I think that is one of the minor upward pressures contributing to the sellof We've seen that with the downgrade, we saw it with the refunding announcement and the other big drivers the FED that's dragging the markets kicking and screaming to the reality that we're going to be up in the zip cub you know, for rates for some time to come.
Notice Cove, We've been in for a long long time. Robert Saff Thank you of Page and fixed.
And come.
On. The Conference Board is absolutely definitive on the pulse of business in America. Dana Peterson is a chief economist of the Conference Board. Dana, what's business doing right.
Now with this yield move?
Well, I think businesses are looking at the fact that the cost of capital is rising and they're starting to pull back on investments. And certainly, when we look at our consumer well our CEO confidence measure, many CEOs, even eighty four percent, think that there's still going to be a recession coming, and they're starting to think about what they're going to do with investments. But surely they are still holding on to workers and they're still hoarding I look.
At this and to me and this goes to the Conference Board research, and that is a log convexity of this real rate. This new environment we're in, the rate of change. The speed of movement is shocking. Do you see that in the conference board research.
Well, I mean, certainly, when we ask consumers what they're really concerned about, deep in the weeds, they are saying that they are concerned about higher interest rates and what that means for purchasing items, especially big ticket items that you need to finance. But the thing is that they're still mainly concerned about inflation, and certainly they're becoming more worried about the labor market.
The fact that there is more concern about inflation, if there is more concern about hiring enough workers, does that just sort of solidify to you that we are not going to get a recession in the near term, that we can keep going the way we are, just simply because they keep seeing the customers, they keep seeing the sales.
Well, I think we're seeing some slowing and sales. Certainly, when retail sales came out in August, they were weaker, and I think the consumer is going to be faced with a number of hurdles. Certainly, just as of this weekend, student loan payments returned, and that's roughly forty four million people impacted. Many of those people between the ages of thirty five and forty nine. Those are peak spending years.
And so when you add that on to the fact that excess savings is running out many consumers who already spent that money or turning to credit card use, all these things bode poorly for the consumer, and certainly with higher interest rates still yet to impact the consumer spending, we think that we're still headed for a short and shallow recession, probably in the first half of next year.
The key component that we've been looking for is the labor market. We are going to get the Jolt data coming out at ten am today. There is a question about whether some of the wage increases that people will keep seeing will offset the inflation, will actually be real positive wage growth, which we actually started to see in the past number of months. Do you foresee that being the new reality just because of the structural tightness of the labor market.
Well, you have two things going on. Wage growth is slowing, especially in services, not so much in those jobs where you have to physically show up to work, and you're losing older experienced workers but inflation is coming down at least underlying inflation, and so there is an offset. And for the first time we've had several months of.
Real wage gains.
But still in all when we ask consumers what are you most worried about, they're still complaining about food and energy prices. And we know that energy prices are rising because OPEC is pulled back on production, and so that tends to that's a bread and butter type issue. And for many consumers it doesn't matter what's going on. If it costs more to fill up your tank and it costs more to fill up your grocery cart, then the world is not a great place.
This is the reason why some people are worried about a wage price viral, because you're seeing the activity of labor unions coming out saying we're not keeping pace with those increases at the pump, with those increases at the grocery store, and they're demanding higher wages and they're getting them. How much are you watching this with interest to highlight how much we could see wages continue to go up at a significant pace just simply to offset that pain that you're talking about.
Sure, I think the key thing is that the number of people who are in unions now is much lower than in the past. So I don't imagine that the actions that we're seeing and increases in wages due to union actions are necessarily going to spiral out of control and filter throughout the rest of the economy. But like I said, we are seeing wage growth slow. Last year, wage growth was really outsized more than it could be
sustained by businesses. So we're going to see that slow to a more sustainable pace.
Dana, what are we going to see in the jobs report? I'm asking for a friend.
Well, I don't know what the numbers are, but I would not be surprised if we saw slowing, continued slowing in the number of payroll gains, certainly compared to last year. Just looking at the three parts of the labor market, you're still going to have a lot of hoarding, but we're probably going to continue to see job losses in those sectors that did very well during the pandemic and
are not doing so well now. And then also some gains continued gains and healthcare and some in leisure and hospitality and.
Near emails in he says, but what about the real wage? Okay, so you got the doom and gloom. Dana Peterson, wage decline, I get it, but I also got disinflation. Do I have a level or even an increasing inflation adjusted wage?
Well, I think well depends on your inflation gage. If you use headline, it's probably about level or maybe even a decline a bit, because like I said, overall inflation is rising because of gasoline prices. But if you use the core, then you probably will see some easing or rather some improvement in weight real adjusted wages.
Dana, thank you so much.
Dana Peterson with the conference board here on the American economy.
There's new weight loss drugs hit the market. Sheila Kayalu of Jeffreys crunching the numbers and writing this, United Airlines would save eighty million dollars a year if the average passenger weight falls by ten pounds. This would trim one thousand, seven hundred and ninety pounds from every United flight, implying a saving of twenty seven point six million gallons a year. TK there's some big numbers.
This is important, and Johan Farre will bring in our next guest, John, I'm gonna do some research, are you. My father died and I had to take on very short notice an economy trip. I didn't have a choice get on a plane, Prima Donna, like I had to go to economy.
And I can report to you.
With surveillance analysis, which is appropriate for someone who owns electrical equipment at credit sweee and now with Jeffrey Sheila Kayalu, that the economy width of a United seat is sixteen point eight inches and business class is a lofty twenty point seven inches. I had to sit up the entire way to Oregon on the unrest because I literally couldn't get in a seat.
Take care of that SHOKEI it's worst in Fenway Park.
That's Brad sail SHADOWE place to say is with us now shadea good morning.
Thanks.
Let's start here. How did this study start? What are you assuming? What are the underlying assumptions that go into all of this?
So kudos to the Jeffreys Equity Research Department for pulling this piece together with thirty analysts across the department. And of how you know weight loss drugs could potentially be helpful and ackful to industries and for airspace and defense and airlines. You know airlines are constantly trying to save fuel. Fuel is twenty five percent of their costs. It's something
out of their control. Fuels up thirty percent, the stocks are down twenty percent in the last three months, and the engine manufacturers like Raytheon, Pratt and GE are having trouble getting the fuel efficiency cross. So we said, what if something out of their control happens and one hundred and seventy five people on the flight lose ten pounds because of ozenfic or whatever, you know, diet that they're on,
and what does that do? And we took a stat going back to twenty eighteen that poor United Airlines put out there. They saved an ounce on every passenger seat from taking out changing the feedstock of the paper that they used on their United Airlines magazine and saving eleven pounds for per flight. What yeah, And so we extrapolated that into ten pounds per passengers one hundred seventy five
people per plane. What happens to the fuel savings? They saved twenty seven million versus the forty two billion that they use. So they use a lot of fuel. It's only two percent, but hey, it's a savings out of their control, and you don't need a new engine for that.
So this is a what if. Are you prepared to say that this is a proxy now for a zenpic and we should get long United Airlines? Are you there yet?
I think across the airline space, variable costs is very difficult for them to manage with fuel going up, so in all seriousness, that is impacting shares of the airlines. So far, labor costs are up forty percent as well, so with their with fifty percent of their costs up significantly over the last few months. It's definitely weigh on the airlines and we're going to see that into q Q three earnings that are coming up in two weeks time.
But you know, the cost element is weighing and also the revenues are as well as a pricing problems.
Lisa, the surveillance golf stream unner less soire I had to go back and actually it's about Kirby air Kirby United Airlines. I was thunderstruck at the percent of business class seats. The more I look back, it's bigger and bigger. One study is they've gone from thirty seats to forty six seats. When is time where business class simply takes over their profit proposition.
So what's going on in the airline industry right now? It's the haves and the have nots. For the first time in such a long time, the network carriers like United and Delta are having their way because that premium passenger is holding up the pricing element, and the mainline cabins are actually seeing price deceleration year over year and
over capacity to leisure markets like Florida. So you're really seeing a tale of two markets where Southwest, Jet Blue are pre announcing pretty negative results on their visibility and Delta and United are seeing premium pricing happen. So that's because of the business class.
Let's put that together, this idea of the potential for weight loss to improve the margins for some of these companies, and the idea that a lot of the companies are earning the most from the front of the cabin, how much can they really push in terms of extra expenses
before they have a real pr problem. In other words, what would happen if you had a company come out one of the discount carriers and say we're going to weigh everybody before they get on the plane, and if you're over this point, we're going to charge you more.
I mean, I think that's part of the problem with the discount carriers is you know, there's no seat assignments. It's a lot more difficult. There's no variability in the class you set in. So I think we're far away from weighing passengers.
But this was just we white backs done. We Yeah, well, you know they weigh backs. You get punished if your back is too heavy, don't you.
Well, okay, but this to me is the issue. It's like, how much can people handle? How much can people put up with? Paying for water, paying for drinks, paying for snacks, paying for the air you breathe, paying for how much you weigh? I mean, at a certain point, you know, when does this become a real problem.
But ten pounds of weight loss? What does that ten pounds come from? You make an assumptions of what could happen to the average weight of the passenger. Do you think that's something actually could happen?
Yeah, I think according to these waste loss drugs. Clearly I'm not on them, but you know people tend to be on them. But if they do lose an average of ten pounds, one hundred and seventy five passengers per narrow wide bodies are three hundred, it would be a significant fuel cost savings. And it was actually in light of because we cover the airlines, the aircraft OEMs like Boeing and the engine guys like GE and RTX, and
they're having such mega issues building these aircraft. It was just a fun way of looking at something that's completely out of their control, not having you to do with making a fuselage with Spirit that stocks down forty five percent, just changed its CEO yesterday. And the engine manufacturers, obviously Pride is having a tough time with the contamination in their engine.
So there's a.
Different angle of looking at something completely out of their control.
Yet Blue struggling as well. So let's get to the nuts and bolts of what's happening right now. Are you starting to see limits to the consumer appetite for flying domestically in America? We've seen that happen now.
So it's a matter of that's our debate in Q three. We're going to see what results have to bring. We downgraded Southwest Airlines to an underperform in the beginning of August on that structural call that the US domestic consumer is in a tough spot. Student loans are coming back, it's weighing on their savings, so that mainline cabin passenger is going to see some difficult times. You know, pricing
is up about ten percent versus twenty nineteen levels. We saw Q two pricing on the mainline cabin down one percent, very different than the story we're seeing in the premium business class cabin. Very different than Transatlantic up twenty five percent versus twenty nineteen levels. So it's a matter of where we you know, what we see in Q three results, John, I look at two flights.
I just ran through the Paris flight, which I think at one point was seven thousand dollars even nine thousand dollars in pandemic and all that shocking statistic. Two thousand, six hundred and twelve dollars business class to Paris out a couple months, Like when you're planning months out, economy used to be seven hundred and even nine hundred dollars. It's now five thirty four, but the ratio is still four point nine to one. You pay a premium to fly Pharaoh.
You pay a premium, just to be clear, just to be Mary Claar Shita, thank you. Thanks Gs Kyler of Jeffray.
With the support of Ray Dalio in Greenwich, Connecticut, they have put together an annual soiree come October. The Greenwich Economic Forum really can't say enough about that. Behind that and support as their governor Ned Lamont. He is the governor of Connecticut and of course has a storied history here of doing business and attempting to keep business within Connecticut. Of course, all the idea of the transfer of Connecticut to maybe a greater New York business as well. Governor,
thank you so much for joining surveillance this morning. What are you going to do about Florida? What are you going to do about somebody in an X million dollar palace in Greenwich or someplace else, or somebody in one hundred and twenty two thousand dollars rental paying four thousand bucks a month in Connecticut and both these people say I'm moving to Florida.
What are you going to do about it?
I'm good to see you. First of all, this is not a soiree. This is a hard working group for the French Economic Forum. We have a lot of fintech and financial services here expanding here, moving here. You're right though, a lot of these firms also have a foot down in Florida, so there's a little bit of a competition Greenwich and Stanford and Miami. You know, when it comes to housing prices, we're very competitive when it comes to workforce and you know, young well educated folks ready for
the fintech world. Connecticut is very competitive there and we've had tens of thousands of new families move into the state of Connecticut, you know, in each of the last few years, so I think we're making progress. A lot of people want to be here.
What is your most effective text policy over the next five years to compete with the American South?
Did you say tech or tax techs?
TA tax policy Connecticut?
I don't know if you're aware they have a few marginal taxes, to say the least.
What are you going to do about tax policy in Connecticut?
Well, look, I don't think we'll ever be as cheap as far than when it comes to taxes, because they can tax sunshine and tourism. But we have an amazing education system, which is a big plus. We just reduce taxes for everybody earning up to about two hundred and fifty thousand, so we're the lowest in the region, so we're making a real progress there. We've eliminated the estate tax for everybody except for the very top five percent of people, So I take that too account. But I
also have to sell Connecticut on the attributes. And that's not just the lifestyle. That's not just the easy access to New York or Boston, great place to visit, wouldn't want to live there, but also the quality of education system and our workforce.
How difficult, governor is it to really build up Connecticut at a time where they are where you are losing population, when borrowing costs are where they are, where you don't have the leeway of borrowing to build so that they will come.
Well, look, let's fasten. We were flat as a pancake for thirty years there, and you're absolutely right. We were losing population. A lot of the older folks were going down to Florida. That's turning around a bit. You know, during the COVID days, our schools were open. A lot of folks moved into the state, A lot of them came from New York, to be blunt about it, and they stayed. So our schools were expanding. You know, the
biggest shortfall I've got is housing. I got to make sure we have enough housing for people here.
There's a problem though, with businesses. I mean Frontier Communications was the latest going to I believe Dallas from Norwalk, Connecticut. I mean some businesses are looking for that tax advantage as well. It's not just older people in particular. I just am wondering how much you can really cater to the tax side of the equation when you can't plug the gap on the borrowing side simply because of where yields are.
Well.
I can tell you that Frontier, which was nearly bankrupt, did move their corporate headquarters, but you know, all the staff is still here. But you know, Citadel and Apollo and Digital Currency Group and Tomo all moved to the state. We're taking sort of an older economy and slowly moving into a newer economy. So I like the trend there. You're absolutely right. Look, Texas is a variable. New England Northeast is more expensive than the sun Melters. I call
it the hot belt. But we're getting more competitive every day, and I think our workforce is a big advantage.
Governor, do you have a migrant crisis?
No, I wouldn't say it's a crisis, but I watch it carefully. We've had a few thousand migrants come. We have a bit of a waiting list, but for us, a waiting list is going from three weeks to three months. It's not what it is you know, New York and Texas, But we watch it carefully. They've got to get to control the border. Just the deal.
You're a sanctuary state, aren't you am?
I right, No, that's not true, but we do have a couple of cities that claim that. But this is not a sanctuary state. We do take care of people in need when they come to the state. But again I think that said, we've got to get control of the border.
What do you make of the attitude changes in places like New York with a year or sub ago that were welcoming migrants and people seeking asylument and now they seem to be turning them back on that. Now they actually have to confront what that looks like.
I think a monitor is a liberal who is rugged by reality. When New York City has, you know, hundreds of thousands of new mirgrants, you've got to take care of You've got to shelter. Kathy Holkals has been very outspoken on this, as has Eric Adams. You got to get these people that they're there either going to be a welfare they're gonna have to be able to get a job. It all circles back to the fact that you've got to control your border.
We sank Governor that what we saw for much of the last several years around this issue was purely just virtue signaling without a price, and that had now been mucked by reality.
Well, let's face it, we've had a lot of vibrant coming across the border, you know, going back to Donald Trump and caravans of terrorists whatever he said, But that said, we've got to control that. Part of that is what you do at the border. Maybe you recognize Venezuela and do some things to mitigate the pressure for people wanted to come into the United States.
That I'm absolutely thrilled to find.
How we're going to save banking in the Northeast.
As you know, you had six football field platforms of ubs long ago and far away in Stamford, and that's sort of It's not that it didn't work out, it's just technology advance forward with work from a home with technology, how does Connecticut stay financial.
I think work from home Tom is a good trend for us in the sense that we used to have everybody commuting back and forth and into the city and down the Wall Street and the long haul and men. As you point out, a lot of want of the be closer to a home, so they move some of their headquarters out of here. What we're finding is, maybe you're in the city two three days a week. Our Metro North trains on Friday are not crowded at all.
In fact, they're virtually empty. We're going to cut down there a little bit, just because people have a different lifestyle. And I think the fact that you can be closer to home out here in Connecticut and you don't have to do that commute five days a week is a big plus for the Connecticut lifestyle.
Governor, I appreciate the update today. Let's do this again soon, Governor an I'm on of Connecticut.
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