Chapter 1: What is the main topic discussed in this episode?
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Subject to credit approval, Apple Card issued by Goldman Sachs Bank USA, Salt Lake City branch. Terms and more at applecard.com. Bloomberg Audio Studios. Podcasts. Radio. News. What are you seeing right now? Are you seeing those changes that people are talking about, that diversification away from U.S. assets? Do you see that at all? Now, we really don't see that in the data at this point.
I remember where we've come from, which is the U.S. has been really an incredibly strongly performing market, strong economy. People have been predicting the U.S. to be It's some type of decline from an economic point of view. Recessions. We've talked about that in the past two or three years. None of that's actually happened.
And in fact, now I think you find and you've heard this on your show, more optimism associated with what the next year holds from an economic point of view. GDP pretty solid, looking to potentially even expand in 2026. You've got the stimulus checks coming the way that they actually didn't adjust the withholding in order to be able to encourage those stimulus checks.
That all is a pretty good setup. And you've got to be in the preparedness business. We're all risk managers. And at the end of the day, you've got to be resilient because things can go wrong, things can happen. But I think that's the setup. And so reallocating away from the U.S. in the face of that, probably not the smartest choice to make, but you've got to be diversified.
So you can't have the concentration. The U.S. has been a pretty concentrated bet over the past few years.
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Chapter 2: What insights does Robin Vince offer about the current state of US assets?
Although what's the consequence of that? I mean, there's a difference between reallocating away from and diversifying. There is some knock on effect, which is maybe some people are calling sell America. Other people are just saying diversifying and hedging your bets. I mean, how much will that affect the funding conditions of the United States? Look, diversification makes sense.
One needs to have a balanced portfolio. It's just good risk management. It's good investment management to make sure that you've got exposure to the various different opportunities that are out there. But we certainly have seen, and look around, we're a global firm. We provide platforms and serve clients all across the world.
But when you look at the US and you just look at the facts of the performance over the course of the past decade, you look at all the innovation that's been in the US, all of the value that's created, AI is one example, technology more generally, it would have been a mistake to not have participated in the U.S. market.
And so a little bit of rebalancing, a little bit of sort of thinking about how to make sure you've got the right portfolio, whether it's equities, fixed income. We talk about 60-40. Oh, gosh, it was dead. Now it's back. Bonds. OK, where do you want to be exposed to in the bond market? The U.S.
bond market is still the most liquid market in the world, and it is still the closest thing to a risk-free asset that there actually is. How important is it that Senator Tom Tillis stays in Senate at least for the next 364 days?
He was on just moments ago with us and he was talking about how he's not going to hold confirmation hearings until the DOJ suit or inquiry into Fed Chair Jay Powell is lifted. I'm just wondering from your perspective how important it is to see that type of noise die down around the Federal Reserve for you to feel confident that this truly is going to remain the status quo going forward?
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Chapter 3: How does Robin Vince view the future economic outlook for the US?
Right. Well, the Senate is a great public servant and I appreciate all of his time serving in the U.S. Senate.
But I think you hit the key point, which is at the end of the day, it's not super helpful for the long term objectives of the U.S., which are keep interest rates on the low side to be able to make it easier for people to be able to borrow, to be able to buy a home, to be able to fund a car payment, for companies to be able to borrow in order to be able to fund and invest their businesses.
For all of that, we want low rates. So creating and sort of shaking at the foundation of the independence of monetary policy, that's not really in the interests of keeping long-term rates low. So I think it is helpful if that dies down and we can get back to the business of really seeing the economy perform. Counterproductive, which is the words you used in the past when it comes to it.
Have you had any engagement with the White House about this issue, given the concerns? You know, we're always talking to the administration, making sure that we're given our point of view. And so that's, of course, that's one of our jobs. And one of my jobs as a CEO is to be talking all across the administration and in Congress and giving them our perspective.
And I do think it is in the interests and the administration's been very clear. They would like to see long term interest rates lower because it benefits companies and individuals. And so if that's the objective, then making sure that we're keeping the Federal Reserve sort of a little bit
out of the news and not super controversial, I would personally say would be in furtherance of that objective. It's certainly very much in the news at the moment. Robin, can we talk about your business? How is BMI changing? In what direction are you leaning into? Well, we've been reimagining the company, to be quite honest. We've got a fun history. We're 240 years old.
We were born right around the time of the United States, 1784, oldest bank in the nation, one of the oldest companies in New York. That's a fun history. Now, we got to be old because we've been innovating all along the way. We've stayed very focused on customers.
and our culture is important that's how you get to be a long-lived company so what have we been doing we've been taking stock of what we've actually got our real assets our great businesses and we've really been focused on delivering them better for the client we used to be a bunch of pieces kind of siloed, fragmented.
And so we set out three years ago to say, we're just going to reimagine the company and we're going to pull ourselves together. We're going to focus on our clients.
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Chapter 4: What strategies does Robin Vince suggest for diversifying investments?
We've got these market leading businesses, kind of a financial services platforms company these days, and we're going to rally round as a team. Very important that culture team to be able to deliver for customers. And you can see the results. So this was past quarter for us, which comes to the sort of the end of that first three year chapter was it was a quarter of records.
It was actually a year of records for us in 2025. Record revenue, record pre-tax income, huge EPS growth in the markets rewarded us for that. But what they're really looking through and seeing is the fact that we're delivering for our customers. And that's what it's all about. Hello, I'm Stephen Carroll. I'm in Brussels, where many of Europe's biggest decisions get made.
And I'm Caroline Hepke in London. We're the hosts of the Bloomberg Daybreak Europe podcast. We're up early every weekday, keeping an eye on what's happening across Europe and around the world. We do it early so the news is fresh, not recycled, and so you know what actually matters as the day gets going.
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