# NextEra to Buy Dominion for $67 Billion to Create U.S Power Giant

An episode of [Bloomberg Intelligence](https://invisiblenetwork.ai/podcast/326301337), 18 May 2026, 19 min.

Audio: https://podtrac.com/pts/redirect.mp3/tracking.swap.fm/track/UVBrz8bN8aM2Xe47PEPu/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/7f534b8c-9e91-429a-b102-ae3c00090c6d/ee0e4994-3a7d-45e2-91b7-b44e011176a1/audio.mp3?utm_source=Podcast&in_playlist=0ad812bf-fd15-4012-a18c-ae3c00090c76

Watch Paul and Scarlet LIVE every day on YouTube: http://bit.ly/3vTiACF. Bloomberg Intelligence hosted by Paul Sweeney and Scarlet Fu -Emily Forgash, Bloomberg Energy Reporter, discusses NextEra Energy agreeing to pay about $67 billion in stock for Dominion Energy in the biggest power acquisition ever, creating a giant utility extending from Florida to the artificial intelligence data centers clustered in Virginia. -Matthew Palazola, Bloomberg Intelligence, Senior Analyst, P&C Insurance, discusses 13F filings. According to Bloomberg Intelligence: Berkshire Hathaway's first 13F under CEO Greg Abel suggest more willingness to commit to tech stocks than under Warren Buffett, with the purchase of roughly $12.5 billion in Alphabet stock. This is likely to add volatility but add exposure to potential gains from AI and other emerging technologies. -Ira Jersey, Bloomberg Intelligence Chief US Interest Rate Strategist, discusses a recent survey from Bloomberg Intelligence on the transition to Kevin Warsh as Fed Chair. According to BI: A significant majority of market participants expect the Treasury yield curve to steepen as Kevin Warsh takes the helm of the Fed. This appears to be the result of a similar share seeing Warsh as relatively dovish compared with his predecessor, Jerome Powell, though not an outright dove. Respondents see scope for eventual shifts in the Fed's policy framework, yet assign low odds to a $1 trillion-plus balance-sheet reduction. See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
[0:10] Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
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[0:24] Speaker 2: Merger Monday, definitely here. Next Era Energy agreeing to pay
[0:28] Speaker 2: back sixty seven billion dollars in stock for Dominion Energy
[0:32] Speaker 2: and the biggest power acquisition ever. That's pretty cool. Dominion.
[0:36] Speaker 2: I know those folks are down there in Richmond, Virginia,
[0:38] Speaker 2: one of my favorite places. Emily Foregas Joints is here.
[0:41] Speaker 2: Energy reporter for Bloomberg News. Em we talk to us
[0:43] Speaker 2: about this deal. It's a monster sized deal. Why is
[0:46] Speaker 2: Next Era buying Dominion?
[0:48] Speaker 3: Yeah, it's such a great question. There are many answers.
[0:52] Speaker 3: The one that I've heard the most from analysts so
[0:54] Speaker 3: far is that Next there needs to rebalance its utility
[0:58] Speaker 3: business versus its unregular, non regulated development business. It's development
[1:03] Speaker 3: business for renewables has grown astronomically in the past few
[1:06] Speaker 3: years because of the demand, largely from data centers, and
[1:09] Speaker 3: it needs to rebalance more back to its regulated side.
[1:13] Speaker 3: That's what Credit rating agencies require of them, so they
[1:16] Speaker 3: either needed to sell generation or buy a regulated utility.
[1:20] Speaker 2: How is AI and the need for electricity, it's we're
[1:24] Speaker 2: seeing it all over. How is that driving this deal?
[1:27] Speaker 1: Yeah?
[1:28] Speaker 3: I mean Virginia, where Dominion operates mainly, is home to
[1:33] Speaker 3: Data Center Alley, which is the biggest concentration of data
[1:36] Speaker 3: centers in the US. And right, yeah, Northern Virginia, and
[1:42] Speaker 3: they the Virginia is struggling to meet that demand and
[1:46] Speaker 3: the demand forecasts for the next few years are completely
[1:50] Speaker 3: outstripped what these utilities can provide at this moment in time.
[1:53] Speaker 3: And that's the story across the country. And so Next
[1:56] Speaker 3: Sarah now being by far the biggest utility in the country,
[1:59] Speaker 3: once this goes through, would the challenge for next Ara
[2:03] Speaker 3: would be to try to provide energy for those data centers.
[2:05] Speaker 2: Wow, all right, you said they're going to create the
[2:07] Speaker 2: biggest So I'm thinking the regulators are just licking their
[2:10] Speaker 2: chops here to review this deal. What are the companies
[2:13] Speaker 2: saying about the regulatory hurdles they need?
[2:15] Speaker 3: Clear Yeah, there's a long list of regulatory bodies within
[2:19] Speaker 3: the power sector that will need to look at this deal.
[2:21] Speaker 3: Some analysts that I've talked to, though, have been pretty
[2:23] Speaker 3: positive about this going through, especially from the Virginia legislature
[2:27] Speaker 3: side and regulators in Virginia. Virginia really needs some help
[2:31] Speaker 3: with meeting this power demand, and next Era comes with
[2:35] Speaker 3: a whole host of renewables and a lot of development
[2:40] Speaker 3: on a strong utility side and are pledging to use
[2:43] Speaker 3: batteries in the area and things like that to meet demands.
[2:46] Speaker 3: So the analysts I've talked to have been pretty positive
[2:48] Speaker 3: from that perspective.
[2:49] Speaker 2: What we know, I don't know that much about next Tora.
[2:51] Speaker 2: I see they're down in Florida company. I think this
[2:53] Speaker 2: feels like the old Florida Power and Light or something
[2:55] Speaker 2: like that. But what do we know about next Era?
[2:57] Speaker 3: Yeah, so next Era has a utility in Florida, but
[3:00] Speaker 3: then also has a huge development business. It's become one
[3:03] Speaker 3: of the biggest renewable energy developers in the US in
[3:06] Speaker 3: the past couple of years. And as I said, that
[3:08] Speaker 3: demand has been proven by how big the renewable energy
[3:12] Speaker 3: arm of next Era has gone. And this is why
[3:14] Speaker 3: this rebalance is quite necessary.
[3:17] Speaker 2: Are analysts saying get ready for some more consolidation utility
[3:21] Speaker 2: industries is just the beginning. What are they saying.
[3:24] Speaker 3: Yeah, they are definitely saying get ready for more consolidation.
[3:27] Speaker 3: One of the reasons is that all of these utilities
[3:29] Speaker 3: are pledging to spend trillions of dollars on new generation,
[3:34] Speaker 3: new transmission, basically upgrades to the grid over the next
[3:37] Speaker 3: five years. And each one of these new a new
[3:41] Speaker 3: gas plant costs billions of dollars, and so these utilities
[3:45] Speaker 3: are striving to get bigger and bigger, bigger market caps,
[3:48] Speaker 3: more money behind them so that they can reasonably pledge
[3:51] Speaker 3: all of that money that's necessary to upgrade the grid
[3:53] Speaker 3: and add new generation.
[3:55] Speaker 2: I read the book called The Grid Ah this year. Yeah,
[3:58] Speaker 2: so I'm all in on this. But I guess one
[4:01] Speaker 2: of the questions is who's going to pay for all this?
[4:04] Speaker 2: Is it going to be the rate payers like me
[4:06] Speaker 2: and you and Charlie. Charlie is definitely gonna pay, or
[4:09] Speaker 2: is it going to be you know, if Google wants
[4:12] Speaker 2: this big uh you know data center you pay for Google.
[4:15] Speaker 3: Yes, So that's still the major million dollar question. But
[4:18] Speaker 3: I will say that there have been certain pieces of
[4:21] Speaker 3: legislation that are passed or in or being talked about
[4:26] Speaker 3: right now that would answer this question. What the big
[4:30] Speaker 3: tech companies have said that they are willing to pay
[4:32] Speaker 3: for the new generation that's necessary to meet their demand.
[4:35] Speaker 3: The question is whether or not they will pay for
[4:38] Speaker 3: all of the upgrades, or whether or not some of
[4:40] Speaker 3: that capex that these utilities are going to have to
[4:42] Speaker 3: spend will trickle down to rate payers. So far, Bloomberg
[4:46] Speaker 3: did an analysis that shows that so far the data
[4:48] Speaker 3: center boom has made electricity prices higher, and electricity prices
[4:53] Speaker 3: inflation outpaced overall inflation last month.
[4:55] Speaker 2: So and I would think in the like in the
[4:57] Speaker 2: metro Washington, DC area of and all that kind of stuff,
[5:00] Speaker 2: those folks are probably pretty sensitive to that.
[5:03] Speaker 3: Yeah, yes, exactly. And electricity prices are already forecasts to
[5:08] Speaker 3: be a really big part of the midterms this year,
[5:10] Speaker 3: and so that's always going to be the backdrop of
[5:13] Speaker 3: the conversation with a big deal like next airond Dominion.
[5:16] Speaker 4: Stay with us. More from Bloomberg Intelligence coming up after this.
[5:23] Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
[5:27] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[5:30] Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever
[5:33] Speaker 1: you get your podcasts, or watch us live on YouTube.
[5:37] Speaker 2: Once a quarter they get this thing called the thirteen
[5:39] Speaker 2: F SKIF files, so you can see what funds are
[5:41] Speaker 2: buying and selling. And there's a whole cottage industry out
[5:44] Speaker 2: there for people who do this. For Berkshire Hathaway, what's
[5:47] Speaker 2: Warren Buffett buying and selling? It's a little bit different
[5:50] Speaker 2: this time because we've got a new CEO, Greg Abel,
[5:54] Speaker 2: and I want to see what he's been buying and selling.
[5:56] Speaker 2: Here Matthew Palazola, he knows. He's a senior analyst covering
[5:59] Speaker 2: the insurance businesscluding Berkshire Hathaway for Bloomberg Intelligence. So what
[6:03] Speaker 2: do we learn from this thirteen F from Berkshire Hathway.
[6:05] Speaker 2: What does mister greg Able, the new CEO, what's he doing?
[6:08] Speaker 5: So we never know actually what's happening behind the scenes.
[6:12] Speaker 5: They don't talk to analysts and don't tell us anything.
[6:15] Speaker 5: Warren Buffett's is still around, he's the chairman. He goes
[6:19] Speaker 5: in the office every day, so there could be some
[6:21] Speaker 5: fingerprints on this, but maybe not because the biggest move
[6:26] Speaker 5: was a dramatic increase in their stake in Alphabet So
[6:30] Speaker 5: they had about four billion and now they have about
[6:33] Speaker 5: sixteen billion worth of Alphabet shares and that was the
[6:36] Speaker 5: biggest individual move in the quarter.
[6:38] Speaker 6: And Buffett is known for investing in things he understands.
[6:41] Speaker 4: That's kind of how he puts it, right.
[6:43] Speaker 6: He wants to be able to understand the business model
[6:45] Speaker 6: and then he's in on it. Does Greg Able have
[6:48] Speaker 6: like a self professed philosophy on investing?
[6:52] Speaker 5: Same That was pretty much what he said in interviews
[6:55] Speaker 5: was we think of it the same way. They took
[6:58] Speaker 5: this initial Alphabet's stake while Buffett was still there last year.
[7:03] Speaker 5: But it could have been it could have been able
[7:06] Speaker 5: then it could have been the investment deputy Ted Welscher.
[7:09] Speaker 5: So he does profess we want to understand the businesses,
[7:13] Speaker 5: So I guess he understands Google's business.
[7:16] Speaker 2: So any reason to think, first of all, give me
[7:19] Speaker 2: the what's that cash number that's on the Balandt sheet
[7:21] Speaker 2: that I.
[7:21] Speaker 5: Believe it's three eighty billion eight number was too high
[7:24] Speaker 5: because they had some settlements in there.
[7:26] Speaker 2: Okay, so give just give our listeners and viewers a
[7:28] Speaker 2: ballpark three hundred and eighty billion dollars that they have
[7:30] Speaker 2: on their Balundt sheet that supposedly they're supposed to invest
[7:35] Speaker 2: anything but that's been a problem because you can't find
[7:37] Speaker 2: stuff out there that can put a dent in three
[7:39] Speaker 2: hundred and eighty billion dollars correct, So is there anything
[7:41] Speaker 2: that greg Able may do to change that dynamic?
[7:45] Speaker 5: So we talked about this before. I think capital return.
[7:49] Speaker 5: I mean, so, what are you gonna You're gonna buy
[7:51] Speaker 5: something by a whole company? Yeah, return capital, which seems
[7:55] Speaker 5: to be a no.
[7:56] Speaker 7: No.
[7:57] Speaker 5: I don't think he's in any rush to by a
[8:00] Speaker 5: bit make a huge splash. And I also don't think,
[8:04] Speaker 5: you know, as long as Buffett is there, that he's
[8:06] Speaker 5: going to return capital in any meaningful way to investors.
[8:09] Speaker 5: So I think we'll see more of the same. I
[8:10] Speaker 5: think this was still so. The other story of this
[8:14] Speaker 5: quarter is they sold a lot of stock. But that
[8:17] Speaker 5: stock they sold was likely positions by one of the
[8:21] Speaker 5: former investment deputies who left the firm.
[8:24] Speaker 2: So they sold about I think the guy w Morgan, right.
[8:27] Speaker 5: Yes, toddcolmbs. So they sold about eleven billion in positions
[8:33] Speaker 5: that I think are related to him. Again, they don't
[8:35] Speaker 5: tell you if they are included, and that was a
[8:37] Speaker 5: visa and MasterCard. So they sold a lot in the quarter.
[8:42] Speaker 5: The net story then was they actually sold more than
[8:44] Speaker 5: they bought. But if they didn't do this, they would
[8:47] Speaker 5: have bought more than they sold. So the story is
[8:50] Speaker 5: he and for I think it was fourteen quarters prior
[8:52] Speaker 5: to this they had sold more than they bought, so
[8:55] Speaker 5: x that big move. They would have actually been a
[8:58] Speaker 5: net buyer of stock for the first time.
[9:00] Speaker 6: And I remember Warren Buffett a while ago talking about
[9:04] Speaker 6: how he was going to go elephant hunting with, you know,
[9:07] Speaker 6: his horde of cash.
[9:09] Speaker 4: What was the last major acquisition they did make and
[9:11] Speaker 4: how did that go?
[9:12] Speaker 2: So they've they've bought a couple of sizable things. I mean, like.
[9:16] Speaker 5: They bought the it was twelve billion dollars worth of
[9:19] Speaker 5: Google stock in the quarter, right. They bought a chemical
[9:23] Speaker 5: company from Occidental for about eleven billion dollars. Last year,
[9:27] Speaker 5: they bought Alleghany, which was an insurance company holding company
[9:32] Speaker 5: the owner of Kurby Squish Mellow Fame that they people
[9:37] Speaker 5: go crazy about at the annual meeting. So they've put
[9:40] Speaker 5: money to work. It's just they're they're generating a lot
[9:43] Speaker 5: of capital, so it's kind of offsetting. And I mean
[9:45] Speaker 5: they're doing like ten billion at a clip is not insignificant.
[9:50] Speaker 2: I think all of those deals.
[9:51] Speaker 5: I don't know about the oxychem deal that's still ongoing,
[9:55] Speaker 5: but I think the Alleghany deal was good for them.
[9:57] Speaker 5: It bolstered a bunch of insurance business is where they
[10:00] Speaker 5: could use more scale, and those additional businesses have been
[10:03] Speaker 5: good as well.
[10:04] Speaker 2: All Right, what else is going on in your world
[10:06] Speaker 2: of property and casually insurance here? I'm looking at the index.
[10:09] Speaker 2: It's kind of flat for the year. I guess. I'm
[10:11] Speaker 2: looking at the S and P property and casually insurance
[10:13] Speaker 2: things kind of flat.
[10:14] Speaker 5: So we're we're kind of so I started my career
[10:17] Speaker 5: in the tech boom and I got DejaVu all over again.
[10:20] Speaker 5: We're we're at the mercy of the the I guess
[10:23] Speaker 5: Stewey Robots of the world where these names sell off
[10:27] Speaker 5: when tech, you know, kind of gets more in favor.
[10:29] Speaker 5: Risk on. We are going to go into hurricane season,
[10:33] Speaker 5: so the forecasts four hurricane season are about average. So
[10:40] Speaker 5: you know, if maybe you want to see me a
[10:42] Speaker 5: little bit more, maybe we'll get more activity. I don't know,
[10:44] Speaker 5: but you've got two things. So you've got the El
[10:46] Speaker 5: Nino effect and then you've got hot sea surface temps.
[10:51] Speaker 5: So hot sea surface temps increase hurricane activity, but the
[10:55] Speaker 5: El Nino effect actually decreases it. So we've got two
[10:58] Speaker 5: kind of countervailing forces going on in the Atlantic, which
[11:01] Speaker 5: will kind of ned out to probably an average hurricane season.
[11:05] Speaker 5: So we'll see what happens.
[11:06] Speaker 6: I've been reading that the AI Weather Forecast will make
[11:10] Speaker 6: these forecasts a lot more accurate than they have been
[11:12] Speaker 6: in the past, so there'll be fewer surprises, or that's
[11:15] Speaker 6: what we should expect as possible.
[11:16] Speaker 5: I think the thing is, you can have a lot
[11:19] Speaker 5: of hurricanes, but they don't really hit high value areas
[11:22] Speaker 5: and it doesn't matter all that much for my companies,
[11:25] Speaker 5: you know, or society, or you can have just one
[11:29] Speaker 5: and it kind of slips through and hits Miami or
[11:31] Speaker 5: something like that, and then it's a disaster. I've heard
[11:35] Speaker 5: similar things that you know, the AI can help with modeling,
[11:38] Speaker 5: but I think there's always going to be the weather wildcard.
[11:41] Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after this.
[11:48] Speaker 1: You're listening to the Bloomberg Intelligence Podcast. Catch us live
[11:52] Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
[11:55] Speaker 1: Auto with the Bloomberg Business app. Listen on demand wherever
[11:58] Speaker 1: you get your podcasts or watch US live on YouTube.
[12:02] Speaker 6: Let's talk about what's going on in the bond market,
[12:04] Speaker 6: because we had this massive sell off in global bonds
[12:08] Speaker 6: on Friday, pushing yields higher in the UK, in Japan,
[12:12] Speaker 6: in the US, and we're getting a little bit of
[12:15] Speaker 6: relief today, but not so much because you look at
[12:17] Speaker 6: the ten year yield, it is still up at about
[12:19] Speaker 6: four point six percent, the thirty year yield at five
[12:22] Speaker 6: point one three percent. IRA Jersey is our chief US
[12:25] Speaker 6: interest rate strategist, and IRA this kind of makes things
[12:29] Speaker 6: difficult for a new FED chair Kevin Walsh, who doesn't
[12:34] Speaker 6: have to do anything right away, but he is gearing
[12:35] Speaker 6: up for the FMC later this later in June.
[12:39] Speaker 7: Yeah, it's going to be hard for him to make
[12:41] Speaker 7: the case that they should be cutting interest rates right now.
[12:44] Speaker 7: And you know, even though the market is higher, I
[12:46] Speaker 7: think the you know, the part of the issue is
[12:49] Speaker 7: here is that we're seeing this global sell off. So
[12:52] Speaker 7: this isn't all just about US treasuries. It's not all
[12:54] Speaker 7: about the US either inflation expectations or monetary policy expectations.
[13:00] Speaker 7: But it's the fact that you have in Japan and
[13:02] Speaker 7: the UK in particular, really serious questions about their fiscal
[13:06] Speaker 7: health in the longer term. So, you know, if we
[13:09] Speaker 7: want to call this bond vigilantes, I think that you
[13:11] Speaker 7: can make the case that there's at least a little
[13:15] Speaker 7: bit of that seeping into the markets via the kind
[13:18] Speaker 7: of the back door into the treasury market. So it's
[13:20] Speaker 7: not treasury specific, but it is a global developed market phenomena.
[13:25] Speaker 2: Scarlett. You know you're a player in the global interest
[13:27] Speaker 2: rate business if in your email inbox you received the
[13:30] Speaker 2: following document Bloomberg Intelligence Feder Reserve chair Transition Survey. If
[13:38] Speaker 2: you're a player, yeah, I know you sent this survey
[13:41] Speaker 2: out to the main players out there in the marketplace,
[13:44] Speaker 2: and you're talking about what does a new FED chairman
[13:46] Speaker 2: mean for the FED? What does survey? What'd you guys learn?
[13:50] Speaker 7: Yeah, So we put out that note this morning, Paul,
[13:52] Speaker 7: and you know, we we found it. The most surprising
[13:55] Speaker 7: thing in there was not that Kevin Warsh is expected
[13:58] Speaker 7: to be more dubbish than J.
[13:59] Speaker 2: Powell.
[13:59] Speaker 7: I think that that's certainly something that many people thought,
[14:03] Speaker 7: given that he's being appointed by President Trump. But it's
[14:06] Speaker 7: really that over two thirds of the respondents thought that
[14:09] Speaker 7: the yield curve would steep in and you haven't seen
[14:12] Speaker 7: that very much, so you know, it might be very
[14:14] Speaker 7: difficult for the yeld curve to stephen at this point,
[14:16] Speaker 7: especially if the market continues to think that the Fed's
[14:20] Speaker 7: going to be relatively hawkish. Okay, that's Donald Tickle in
[14:28] Speaker 7: my throat talking about Kevin Moore.
[14:31] Speaker 6: Yeah, Well, he's got a big, big, heavy task in
[14:34] Speaker 6: front of him. How does he fold in what's happening overseas?
[14:38] Speaker 6: I mean, does that factor into his thinking the FMC
[14:41] Speaker 6: is thinking at all. You talked about the returnal bond
[14:43] Speaker 6: vigilantes that's maybe seeping into the US.
[14:46] Speaker 4: Did they just not focus on that at the moment.
[14:50] Speaker 7: Yeah, So the Fed's going to focus on how the
[14:52] Speaker 7: international environment's going to affect the US economy, right, And
[14:55] Speaker 7: I think that when you think about higher oil prices,
[14:58] Speaker 7: when you think about the fact that you've had now
[15:00] Speaker 7: higher yields, In a way, the market's doing the Fed's
[15:04] Speaker 7: job for it, right. It's tightening financial conditions at a
[15:06] Speaker 7: time when when the growth is okay, right, the growth
[15:12] Speaker 7: isn't great, Like, it's very disjointed growth right now in
[15:16] Speaker 7: terms of the consumer. And we know that, right. We
[15:19] Speaker 7: call it the k shaped economy, so they will take
[15:22] Speaker 7: into account what's going on in Europe, what's going on
[15:24] Speaker 7: in the UK, what's going on in Japan. These are
[15:26] Speaker 7: our major trading partners, and these will have an effect
[15:30] Speaker 7: on the US. Right. We do export a lot, We
[15:32] Speaker 7: do have large trade balances, both positive and negative with
[15:35] Speaker 7: some of these countries, so all of that will be
[15:38] Speaker 7: taken into account for sure. Now, Kevin worsh I think,
[15:40] Speaker 7: would like the lower interest rates, but he wants to
[15:42] Speaker 7: do that by cutting the Fed's balance sheet. And one
[15:46] Speaker 7: of the things that did come out of the survey
[15:48] Speaker 7: today was not many people in the investment community think
[15:52] Speaker 7: that the FED is going to be able to actually
[15:53] Speaker 7: shrink its balance sheet.
[15:55] Speaker 2: Earlier today, I'm Bloomberg Surveillance. We had a gunat Dingra,
[15:59] Speaker 2: head of US REE strategy at BNP parryba On. He
[16:01] Speaker 2: was saying, basically, if you look at the third year,
[16:04] Speaker 2: five percent the new four percent, kids, you better get
[16:06] Speaker 2: used to it. How do you think about that?
[16:09] Speaker 7: Yeah, you know, we've been hovering kind of between four
[16:12] Speaker 7: and a half and five percent basically for a couple
[16:14] Speaker 7: of years now, and five percent might not be the
[16:18] Speaker 7: new four, but you know, four and a half percent
[16:20] Speaker 7: might be the new three and a half percent, And
[16:22] Speaker 7: I think that's that's pretty standard thinking, especially given that
[16:27] Speaker 7: the US fiscal situation has not improved any right, So
[16:31] Speaker 7: we yes, we've seen slightly smaller deficits than we had
[16:35] Speaker 7: a couple of years ago, but we also don't see
[16:38] Speaker 7: any relief from that in sight. So it's hard to
[16:41] Speaker 7: see why thirty year yields would go down very much
[16:43] Speaker 7: when you are worried about longer term inflation not being
[16:46] Speaker 7: your target, and also in particular the size of the
[16:50] Speaker 7: size of the government's dead outstanding ARA.
[16:53] Speaker 6: When you guys held your survey, you also asked about
[16:56] Speaker 6: the legacy of FED outgoing FED chair J Powell.
[17:01] Speaker 4: What did you get from that? What was the takeaway
[17:03] Speaker 4: for you?
[17:04] Speaker 7: Yeah, most most investors thought that Jay Powell did a
[17:07] Speaker 7: pretty good job on communication. He did a good job
[17:10] Speaker 7: maintaining the Fed's independence. You know. Part of this is
[17:13] Speaker 7: some people think that that Kevin Moorsh won't be quite
[17:16] Speaker 7: as independent as Jay Powell was. That that certainly was
[17:19] Speaker 7: one of the findings of the survey. But generally speaking,
[17:22] Speaker 7: people were fond of j. Palell. Most of them didn't
[17:25] Speaker 7: think he was perfect. So we asked an open ended
[17:27] Speaker 7: question at the end of the survey, and some people said, like, hey,
[17:31] Speaker 7: you know, he was not great determining that as saying
[17:34] Speaker 7: that inflation was transitory, but he also reacted relatively quickly
[17:38] Speaker 7: to that as well. So I think, you know, Jay
[17:41] Speaker 7: Powell will be seen as pretty fondly.
[17:43] Speaker 3: You know.
[17:43] Speaker 7: The other thing that we pointed out was J. Powell
[17:46] Speaker 7: is one of the few FED chairs that's had to
[17:48] Speaker 7: contend with two economic cycles. You know. Obviously Alan Greenspan
[17:53] Speaker 7: was in office for so long that he had to
[17:55] Speaker 7: deal with multiple cycles. But outside of him, there's been
[17:57] Speaker 7: very few FED chairs in the post war period that
[18:00] Speaker 7: have had to contend with raising interest rates, lowering interest rates,
[18:03] Speaker 7: raising interest rates, and then lowering interest rates again. And
[18:05] Speaker 7: J Powell, you know, guided the FED through that whole
[18:08] Speaker 7: process over the last over the last eight years.
[18:10] Speaker 2: Hivers thirty seconds. Is the US going to be competitive
[18:13] Speaker 2: at all in the World Cup?
[18:16] Speaker 7: I certainly hope so we should. We should get out
[18:18] Speaker 7: of the group stage. Turkey is probably the most challenging,
[18:22] Speaker 7: most challenging country that we're going to play in that group.
[18:25] Speaker 7: But yeah, it's exciting, you know, three weeks away from
[18:28] Speaker 7: the from the beginning of the of the World Cup.
[18:30] Speaker 7: I'm certainly excited. We've also started the club that that
[18:34] Speaker 7: that I that I co owned. We've started our our
[18:37] Speaker 7: season just this past weekend as well. So a lot
[18:40] Speaker 7: of soccer for me. The next time.
[18:41] Speaker 4: Are you going to go see the World Cup?
[18:42] Speaker 7: I'm going to one game. Yeah, I'm going down to
[18:45] Speaker 7: Philadelphia to see the Ivory Coast versus Corso.
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