The State of EVs, Outlook for Crypto, Talent Strategies
Nov 8, 2023
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Daniel Barel, CEO of REE Automotive, Chris Heller, co-founder of Cordillera Investment Partners, Nicola Hancock, Managing Director of the Americas at AMS, Vinh Vuong, CEO at Garrison Fathom and Vuong Holdings, and Nick Venditti, Senior Fixed Income Portfolio Manager at Allspring Global Investments discuss topics such as unique technology for buy-wire electric trucks, water scarcity and efficient water management, private credit and its risks, challenges in the income share agreement space, the current state of the labor market, the correlation between water use and greenhouse gas emissions, criticism of cryptocurrencies, challenges in achieving inflation target, and intelligent investors in Milwaukee.
Increasing regulatory scrutiny of the crypto market may uncover more cases of fraudulent activity.
High levels of consumer debt could lead to an economic recession in 2024.
Deep dives
Municipal bond market experiencing volatility due to fluctuating rates
The municipal bond market has been experiencing volatility as interest rates fluctuate. Day-to-day rate movements can be influenced by factors such as Federal Reserve decisions and comments from Fed members. While rates may continue to move in the short term, it is believed that they have reached their peak. Inflation is also expected to decrease, easing concerns over rising prices. However, concerns arise over the increasing deficit spending and its potential impact on the bond market.
Crypto market under scrutiny as trial of Sam Bankman-Fried exposes Ponzi scheme concerns
The trial of Sam Bankman-Fried, founder of a collapsed crypto empire, has shed light on the potential Ponzi scheme nature of certain crypto projects. Critics argue that many crypto projects lack inherent value and are driven by hype and marketing rather than genuine innovation. This trial may lead to increased regulatory scrutiny of the crypto market and could uncover more cases of fraudulent activity. However, some crypto exchanges such as Coinbase have gained a level of trust, while others like Binance continue to face scrutiny.
Muni bond investors believed to be a leading indicator for US macro economy
Municipal bond investors are considered to be highly in tune with the US macro economy. They closely observe macro indicators to assess economic conditions. Currently, these indicators are pointing towards a potential recession in 2024. Concerns arise over high levels of consumer debt, such as credit card balances and student loan payments, which could impact consumption and GDP. It is predicted that this could lead to an increase in unemployment rates and potential psychological shock to investors across various markets.
Forecast of an economic recession in 2024
Economists predict an economic recession in 2024 due to several factors. The high levels of consumer debt, driven by credit card balances and student loan payments, may impact consumption and GDP. This could result in increased unemployment rates and contribute to a psychological shock across various markets. However, the overall impact and severity of the recession remains uncertain.
On this edition of Bloomberg Businessweek, hosts Paul Sweeney and Matt Miller speak with Daniel Barel, CEO of REE Automotive, Chris Heller, co-founder of Cordillera Investment Partners, Nicola Hancock, Managing Director of the Americas at AMS, Vinh Vuong, CEO at Garrison Fathom and Vuong Holdings, and Nick Venditti, Senior Fixed Income Portfolio Manager at Allspring Global Investments.
Producers: Eric Mollo, Paul Brennan, Ariel Agami, Sara Livezey