Odd Lots

We're about two months on from Liberation Day, and there's still a lot of confusion about what's going on with global trade. Some countries, like China, have been granted delays from tariffs. But other trade restrictions, like the 50% tariff on foreign steel, have come into effect. So what exactly is going on and what impact is this having on the physical flow of goods into America? In this episode, we catch up with Gene Seroka, executive director of the Port of LA, to get a sense of what he's actually seeing and what it means for US consumers and the prospect of empty store shelves. Read more: Port Leaders Warn Tariffs Bring ‘Radical Uncertainty’ to Economy Empty Store Shelves Might Be Coming Sooner Than You Think Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

To some extent, at least in big cities, it feels as though the cost of housing is enveloping almost everything else in terms of politics right now. Booming areas that drive GDP have gotten incredibly expensive in large part thanks to rent, and even the well paid residents are forced to turn over a significant share of their income over to their landlord. So can anything be done about it? Can rent come down by liberalizing supply and making it easier to build? And can that scale? And what about developers that only want to build luxury-rate housing? On this episode of the podcast, we speak to Steven Fulop, the mayor of Jersey City, which sits directly across the river from NYC. Fulop is a candidate for the Democratic Party's nomination for governor and he says his time in office in Jersey City proves cities can turn the dial on housing supply. We talk about why Jersey City has added so much to its housing stock, what can be attributed to his policies, and what he thinks can be accomplished at the state level both in terms of housing and improving public infrastructure. See omnystudio.com/listener for privacy information.

President Trump wants Apple to make iPhones in America. The company itself has talked about — and to some extent already has been — moving more of its production to other countries, like India. But in reality, Apple remains deeply, deeply enmeshed in the Chinese supply chain. In fact, the rise of Apple, and the iPhone specifically, is the ultimate example of the link between the American and Chinese economies. And while this has been fruitful for shareholders all around the world, and contributed greatly to Chinese economic development, this relationship is also now perceived to be a huge source of geopolitical vulnerability for the United States. On this episode, we speak with Patrick McGee, a reporter at the Financial Times and the author of the new book Apple In China: The Capture of the World's Greatest Company. He talks to us about how Apple discovered the opportunity of doing more manufacturing in China, and how close the company has become with Chinese political leadership. We walk through both the politics and the economics that makes it almost impossible to imagine the company building its products anywhere else at significant scale. Odd Lots Live is returning to New York City on June 26. Get your tickets here! See omnystudio.com/listener for privacy information.

What is a currency? This turns out to be one of those questions we just kind of skip over because we don't have clear answers to it (and because economists often like to skip over these foundational things). This special episode of the Odd Lots podcast was recorded as part of Princeton University's “How to Write the Biography of a Currency” event, hosted by the Princeton Economic History Workshop and the Julis-Rabinowitz Center for Public Policy & Finance. In this discussion, we talk about how we should define a currency and how that definition has changed (or not) over time. Our panelists were Iñaki Aldasoro, an economist at the Bank for International Settlements, Indiana University Bloomington Professor Rebecca Spang, and Stefan Ingves, the former head of the Sveriges Riksbank, the central bank of Sweden, from 2006 to 2022. Read more: Dollar Drops on Renewed Trade Uncertainty, Soft Economic Data Asia’s $7.5 Trillion Bet on US Assets Is Suddenly Unraveling Only Bloomberg - Business News, Stock Markets, Finance, Breaking & World News subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

We're told over and over again that the one "free lunch" in investing is diversification, and that you can improve your returns over time simply by investing in a wider range of assets. This is textbook modern finance. And yet over the past several years this hasn't been the case. An investor would have done great (with the occasional hiccups) just by investing in US stocks. What's more, even within US stocks, investors should have concentrated on big tech stocks. Going long US tech has been identified as the most crowded trade by investors for years, and yet most of the time it has outperformed almost everything else. So what are the lessons from this story? And is now the moment where international diversification is going to work? On this episode, we speak with veteran portfolio manager Krishna Memani, who is now the chief investment officer at Lafayette College. Previously, he was the CIO at OppenheimerFunds, which got bought by Invesco. We talk about portfolio theory, the tragedy of the prudent international investor over recent decades, and whether that realized return we've seen across a range of asset classes should prompt a fundamental rethink of finance theory. Odd Lots Live is returning to New York City on June 26. Get your tickets here! See omnystudio.com/listener for privacy information.

Michael Cembalest has been an investment analyst for almost 40 years and his research notes have drawn a cult following on Wall Street. He's known for going super deep into a wide range of topics, like energy and healthcare. And lately he's been writing a lot about AI, with a particular interest in figuring out whether all the investment in data centers and compute will translate into actual profits. On this episode, we talk to the chair of market and investment strategy for JPMorgan Asset Management about why AI is the market "bet of the century," why the dominance of US big tech can't be overstated, and why he's pessimistic about the outlook for small modular nuclear reactors. Odd Lots Live is returning to New York City on June 26. Get your tickets here! See omnystudio.com/listener for privacy information.

Multi-strategy hedge funds have been having a moment with big asset allocators pouring billions of dollars into names like Millennium and Citadel. And given all the growth, multi-strat funds have also been battling each other for talent. But why, exactly, do big investors seem to love multi-strats so much? What actually makes a multi-strat good to invest in? And how do fees and compensation work? In this episode, we speak with Ronan Cosgrave, a partner at Albourne Partners, which advises institutional investors on investing in hedge funds and other alternative asset classes. We talk about key differences between multi-strats and pod shops, plus the importance of pay to the business model. The Math Powering Profits at Multi-Strategy Hedge Funds Multistrategy Hedge Funds Delivered Again in 2024 Odd Lots Live is returning to New York City on June 26. Get your tickets here! See omnystudio.com/listener for privacy information.

We're just a month away from the hotly-contested Democratic primary for New York City Mayor. And one of the candidates -- Queens assemblyman Zohran Mamdani -- is running on a somewhat unusual platform. Endorsed by the Democratic Socialists of America, he's proposing rent freezes, universal childcare, higher taxes on corporations and the wealthy, free buses, and city-run grocery stores. In this conversation, we talk to the would-be mayor about his socialist vision for New York, including how he plans to fund more public goods, what he would do to ensure that government-run services are up to standard, and why there should be Halal carts on every street corner. Read more: NYC Mayor Ditches Democratic Primary to Seek Independent Bid Odd Lots Live is returning to New York City on June 26. Get your tickets here! See omnystudio.com/listener for privacy information.

This week the big story in markets is the selloff in bonds. Yields on benchmark 10-year US Treasuries jumped 20 basis points from last Friday’s low, while the 30-year rate is back above 5%. Meanwhile, 30-year Japanese government bonds clocked their highest yield since records began in 1999. And rates on UK gilts, German bunds, and Australian bonds are also rising. To make matters even more unusual, US Treasury yields are going up while the dollar is weakening (something that doesn’t usually happen.) So what’s going on? And how much does this have to with worries over the US fiscal position, the return of inflation, and the outlook for rate cuts from the Federal Reserve? On this episode, we speak with Steven Englander, global head of G-10 FX research at Standard Chartered. We talk about what’s driving the dramatic moves and the relationship between fiscal and monetary policy. Read more: Deglobalization’s Threat to the Bond Market US Bonds Swing as Dip Buyers Enter After Moody’s-Fueled Selloff Odd Lots Live is returning to New York City on June 26. Get your tickets here! See omnystudio.com/listener for privacy information.

When we think about the prospect of deglobalization (whatever that means) we often think about it in terms of the goods economy. Supply chains get rerouted. Manufacturing becomes more localized, and possibly less efficient. But changes to the global world order also have implications for Wall Street, and the world of dealmaking. On this episode of the podcast, we speak with Scott Bok, the longtime former chairman and CEO of the investment bank Greenhill & Co., which is now part of Mizuho. Scott is the author of the new book, Surviving Wall Street: A Tale of Triumph, Tragedy, and Timing, which covers his long career as an investment banker starting in the early 1980s. We talk about what investment bankers actually do, and also how the great Wall Street dealmaking boom over the last several decades is, in large part, a story of globalization, and the opportunity for firms to roll up localized companies into cross-border giants. He talks to us about how the bankers themselves served as essentially evangelists of the pro-capitalism message of the Reagan era, spreading the gospel of shareholder primacy all around the world. Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

This is obviously an extraordinarily difficult time to make economic forecasts. Nobody really knows how tariffs will effect the US economy. And beyond that, nobody knows what the ultimate state of tariffs will be, or if they'll ever settle into a predictable rate. So how do you conduct monetary policy in this environment? On this episode, recorded at the Federal Reserve Bank in Atlanta, we spoke with Atlanta Fed President Raphael Bostic. He walked us through how he's thinking about the dual mandate right now, and why he has significantly dialed back his expectations for aggressive rate cuts since the start of 2025. Read More: For Exhausted Stock Market Pros the Choice Is Buy or Stay Home Powell Signals 2020 Fed Framework Language on Chopping Block Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

The new administration has a "drill, baby, drill" mantra and a much more liberal attitude towards the oil and gas industry than the last one. But that hasn't translated into great profits for the oil industry itself. Crude prices have sunk and tariffs have raised the cost of components for companies trying to get energy out of the ground. So, what's the future for the industry? And who is actually making money right now? In this episode, we talk to longtime energy industry veteran Peter Tertzakian, the founder and president of Studio.energy, which consults with various industry players. We discuss the state of the overall North American energy industry, the prospects of peak onshore oil production in the United States, pipeline politics, and why liquified natural gas is expected to be the hydrocarbon of the future. Read more: Say Hello to ‘Nil, Baby, Nil’ in the Oil Patch Trump’s Thirst for Cheap Oil Irks an Industry He Loves to Praise Only http://Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

There's been a lot of talk recently about parallels between Donald Trump's economic policies and the Nixon Shock of the early 1970s. That was when the former president took the dollar off the gold standard, introduced hefty tariffs, and pressured the Federal Reserve to ease monetary policy. The moves sparked stagflation in the US and shook up the global monetary order. Now, given Trump's determination to rebalance the US relationship with global trading partners and his criticism of the Fed, could history repeat itself? On this episode, we speak with Perry Mehrling, professor of international political economy at Boston University's Pardee School of Global Studies, and the author of the book Money and Empire. We talk to him about similarities and differences between the Trump administration's current economic policies and the Nixon Shock, as well as why he thinks dollar dominance won't be dislodged anytime soon. Read more: Dollar Poised for Worst First 100 Days of Presidency Since Nixon The Problem With the Fed Isn’t Independence, It’s Accountability Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

Gold prices have been booming and are near record highs. And seeing the line go up — especially during a period of so much uncertainty — makes people want to buy more. That includes acquiring actual gold coins. But where do gold coins come from? Why do people want coins, as opposed to just bullion? And who is buying them? On this episode, we speak with Philip Diehl, the president of gold vendor US Money Reserve. Earlier in his career, he was the 35th director of the US Mint, where he was instrumental in such endeavors as the 50 States quarter project, the Sacagawea dollar coin, and also the language that allows for the creation of the trillion-dollar platinum coin. We talk all about the business and supply chain of coinage, and who's buying these coins today. Watch on YouTube Read more: Gold Advances as Market Weighs Upcoming US-China Trade Talks Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox -- now delivered every weekday -- plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

Over the last several years, the world has watched as China edges close to or past the technological frontier in more and more areas. Earlier this year, US investors were jolted even further when DeepSeek's AI model proved to be close to the state of the art American models. So what is the process by which China actually develops new tech? Why has it worked out so well? And how do priorities set by President Xi Jinping actually get transmitted to researchers and businesses? On this episode, we speak to Kaiser Kuo, the host of the Sinica podcast. He discusses the cultural dimension of tariffs, and what he sees as a fundamentally different attitude towards the benefits of technological progress in China vs. what is seen in the US. Read more: I’m a DeepSeek AI Bro Now Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

America's textile industry has famously declined over the years, with a bunch of production moving to lower-cost places like China, Vietnam, and Bangladesh. Now, with the Trump administration imposing heavy tariffs on exports from these countries, the US clothing industry is facing another big shock. In this episode we speak with Sarah LaFleur, founder and CEO of M.M.LaFleur, which makes high-quality work clothing for women (Tracy is a big fan). She walks us through what the past month has actually been like for a smaller clothing business trying to understand and deal with the tariffs. We talk about the conversations she's been having with mills and factories in China, how the tariffs are already impacting future seasons of clothing, the scramble to secure space on ships before the tariffs hit, and how businesses actually pay the new taxes. Read more: A New ‘China Shock’ Is Destroying Jobs Around the World One Ship, $417 Million in New Tariffs: The Cost of Trump’s Trade War Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

By now, everyone recognizes that the US and China are in the middle of a trade war, with the Trump administration having imposed tariffs of as much as 125% on Chinese goods. For an export-focused economy like China's, that's a big deal. At the same time, China is pretty much the only major country that's chosen to retaliate against the US with its own set of fresh trade restrictions. So why did it decide to reciprocate? And what's its negotiating position as the US and China head into initial talks? Can the Chinese economy -- and its policymakers -- withstand the pain of a trade war? We speak to Arthur Kroeber, head of research at Gavekal Dragonomics and a long-time China watcher, about how China might actually respond to the new tariff regime. Read more: Xi Fortifies China’s Economy Before First Talks on Trade With US What Years of Practice Tariffs Have Done Only http://Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

Every industry is going to be affected by the trade war in different ways. In many cases, we don't know how it's going to play out. Other industries are seeing an immediate impact. Companies that specialize in computer gaming are highly reliant on inputs from China and other East Asian countries. These companies assemble customized gaming rigs and other peripherals (cameras, chairs, controllers, speakers etc.). On this episode, we're joined by Stephen Burke, the founder of Gamers Nexus, a publication and YouTube channel that primarily exists to review products in this space. When the tariffs were announced in early April, he immediately set out to film a documentary titled The Death of Affordable Computing. In that 3-hour video, he talked to numerous players in the space on their profit margins, and how they will be hurt by the changing trade policy. We speak to Steve about this industry, and what he learned about what tariffs will do to both their profitability, or even their viability as ongoing businesses. Read more: Microsoft Raises Xbox and Game Prices, Citing Rising Costs Amazon, Apple Earnings Show Tariffs Are Coming for Big Tech, Too Only http://Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox each week, plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

There are several markets that have really settled down since the tumult of early April. But strange, unusual things are still popping up, particularly in the currency space. Over the last few days, we've seen a huge surge in the Taiwan dollar. This is important, in part, because Taiwanese life insurance companies are major buyers of US dollar assets, such as corporate bonds. Suddenly, they're looking at a major hit to the value of these holdings, with losses that are only partially hedged. So why the sudden move, and what does it mean? On this episode, we speak with Brad Setser, a senior fellow at the Council on Foreign Relations. We first talked to Brad about exactly this topic back in 2019, when the story was more of an intellectual curiosity rather than a market-moving development. We discuss the implications, and what it means in the context of the Trump administration's trade strategy. More: Why Taiwanese Life Insurers Are The Great ‘Whodunit' Of The Financial World Taiwan’s Markets Jolted as Currency Surges Most Since 1980s Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.

What does history say about how big the AI boom can get, and who will ultimately win out? When does a boom turn into a bubble that turns into a bust? On this episode of the podcast, we speak to Henry Blodget, the founder of Business Insider (and Joe's old boss there). In the late '90s, Henry was one of the most well-known Wall Street analysts covering internet stocks, before the crash and recriminations, which ended up in his lifetime ban from the industry. His new project is a publication called Regenerator, which will again focus on business and tech. We discuss the state of the AI boom, and what lessons we can draw from the dot-com era. We also talk politics, what's changed on Wall Street over the last 25 years or so, and a bit on the state of the media business. Only Bloomberg.com subscribers can get the Odd Lots newsletter in their inbox — now delivered every weekday — plus unlimited access to the site and app. Subscribe at bloomberg.com/subscriptions/oddlots See omnystudio.com/listener for privacy information.