Single Best Idea with Tom Keene: Mike Mayo

Tom Keene breaks down the Single Best Idea from the latest edition of Bloomberg Surveillance Radio.

In this episode, we feature a conversation with Mike Mayo.

Watch Tom and Paul LIVE every day on YouTube: http://bit.ly/3vTiACF

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Episode Transcript

Speaker 1 (00:02):
Bloomberg Audio Studios, podcasts, radio news, single.

Speaker 2 (00:14):
Bust idea on a day that was exceptional. Our team
really tried to balance for July a Wednesday. There's almost
no economic data today, Boom A trade discussion on three
fronts yesterday afternoon, Mark Kearney in Canada, right as we

(00:34):
went to air the European Union out of Brussels. Thank
you Steve Carroll for reporting from Brussels, and of course
the bombshell of some form of trade deal. The President
said a massive trade deal with Japan. As the news
came out, you know, I'm not sure how massive it was.
We were diverted by that. We have Google Learnings technology now,

(00:55):
huge curiosity about AI and all of that. Talked to
Mike Mayo of Wells Fargo iconic as a bank analyst
about AI, and I just said, who's winning the technology
race in banking?

Speaker 3 (01:10):
He had one name, Kapie Morgan is the Nvidia of banking.
They're leading with AI. They have it centralized. They say
that you know, most of their employees use it every
day to save a bit more productivity. They seem strategically
and operationally ahead of the pack. They do spend a

(01:34):
lot of money on technology. They spend eighteen billion dollars
this year on technology, and you know, the amount to
AI continues to increase, so they think it's real. They're
embracing it. You know, it starts more non comfort facing activities,
but they're certainly ahead of the game.

Speaker 2 (01:53):
Mike Mayo, and I should say his research team is
really looking at bank regulation. Mike Mayo appearing yes today
at that Capital Markets event that Chairman Powell introduced, and
he said very clearly this is an important time in
bank regulation for those of you of a global Wall
Street mc Mayo associated with it. At some point, somehow,

(02:16):
some way City Group would turn around. It's a hockey
stick up for Citygroup.

Speaker 3 (02:21):
What's underappreciated. They've transitioned from fifty years of a global
matrix missmashed structure YEP, to five lines of business payments, banking, markets,
consumer and well and each one of those lines of
business has a P and L. They have returns, they
have targeted returns, and they have a CEO that's in
charge of achieving those targeted returns. Now, you say, Jane Frazer,

(02:45):
the CEO does not get a Nobel Prize for doing that.
But City is now getting operated more like a normal company,
and they're only six quarters into this new structure. Short
term people are selling the stock inappropriately due to the
terraff City is a tariff beneficiary. They move five trained
dollars of money every day around the world. Now it

(03:06):
might be moving to different countries. Also, a lot of
the customers around the world need trade financee. They need
more trade finante now or in exchange. So this really
fits right into cities right, you know, structural positioning while
they make the structural change.

Speaker 2 (03:21):
Michael Mayo of Wills Fargo there in the bank. So
we're really trying to do more of this, and it's
sort of a project of Eric and our team here
at Bloomberg's Surveillance to really talk to iconic cell side
voices here into the end of twenty twenty five and
into the next year as well. It's easy to do
when it's a bullmarket. Everything seems to be up up, well,
not everything. There's healthcare. Maybe we won't talk to any

(03:44):
healthcare analysts. It's brutal out there for them, but for
everybody else it's up up in a way. Please stay
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(04:07):
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