BofA Global Research Podcasts

The Great Rebalance of the Labor Market

Why are labor markets so strong and when will wage gains finally slow? The reopening of the economy led to another leg higher in labor demand and even as some jobs related to the movement of goods have become redundant, demand from services industries, which tend to be more labor intensive, kept labor tight. Adding to the wage strength, job switchers tended to get the biggest raises. But with much of the reopening behind us and with the Fed aggressively raising rates, Michael Gapen joins us to discuss what's ahead for labor, whether there's room for labor supply to rise from here and whether wages may be more stubborn this cycle. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Building Up Power Infrastructure to Cut Down Prices

Can the Inflation Reduction Act live up to its ambitious name? The IRA or Inflation Reduction Act passed last month is the largest climate and energy package in U.S. history. It earmarks nearly $370 billion in spending towards renewable energy. And while the benefits for residential solar are fairly clear, here we focus on the impact to utilities and the impediments and pitfalls around the energy transition. Julien discusses why corporate and industrial customers may be a critical force behind the transition, the role of nuclear and hydrogen, the need for transmission and pipeline infrastructure and what all of this could mean for power prices. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Thoughts on Crypto and Digital Assets: Macro risks and Ethereum’s Merge in focus

Uncertainty remains as buying momentum and Ethereum Merge optimism fade Buying momentum in the digital asset sector is fading as investors rotate defensively into stablecoins, likely due to uncertainty around the bear-market bounce's sustainability and potential for a hard recession. Alkesh explains the implications of Ethereum's Merge upgrade, which is likely to occur around September 15th.   You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Value-based care, a partial solution for an expensive medical problem

Managed care companies have transformed over the past decade. In 2008, the average managed care company generated about 58% of revenue from commercial or individual plans; today that number has fallen to 18%. Health care companies have increasingly diversified their revenue mix into government programs and also outside of the core health insurance business as they increasingly own physician groups and home health providers. Kevin Fischbeck joins us to discuss this structural change and how it is that patients, doctors and managed care all seem to be coming out ahead. Also, Kevin addresses the latest on labor supply and implications from the recently passed Inflation Reduction Act. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.    

Wireless carriers offering a critical service, promise of 5G at low multiples

5G benefits in the future, critical service now Telecom companies provide a service to consumers that’s basically a utility. But over the past few quarters, telecom stocks have traded close to all-time lows on a P/E basis. David Barden joins us to discuss how networks have improved to the point where there’s much less differentiation and many customers are bringing their own device, all of which has upped the competitive quotient. Still, wireless companies have spent billions on 5G while much of the revenue opportunity is still ahead. And fixed wireless broadband has boomed, now accounting for about 100% of net retail broadband adds from close to 0% in early 2021. It’s a product that offers a compelling trade down option for many consumers. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

European energy situation may mean the gloom endures well past winter

EU gas likely to remain tight for years, a persistent issue for industries and consumers High prices have already destroyed about 10% of European gas demand but curtailed flows from Nord Stream 1 could require another 10% decline in gas use. Industrial demand is likely to take the biggest hit from these curtailments and we look at the Aerospace and Defense industry specifically to understand how various parts of it may be impacted. Europe has already committed to using other sources of energy, from LNG (liquid natural gas) to renewables, but this will take time and in the interim, many European companies will be forced to find their own solutions, which may include moving production from Europe. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.  

Suburbs offering more space, but neither housing nor the entrees come cheap

Migration trends could shift again as cost of living benefits for popular post-COVID cities vanish During the pandemic, homebuyers left urban centers for the suburbs, particularly Sunbelt regions, in pursuit of a lower cost of living and attractive climates. The impact on real estate prices has been widely discussed, but the population shift also created a greater demand for services such as restaurants. Local businesses didn’t have the staff to serve these new customers even as there was often a surplus of labor in the urban core, and this contributed to the imbalanced labor market we’re experiencing. Now with surging prices of homes and services in some of these areas, there may be less of a cost of living benefit to moving. And if fewer people are moving, we discuss what that could mean for sales of home related goods. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life.   "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.

Energy underinvestment breeding supply issues but demand now in question

Oil drivers go well beyond potential slackening demand A further slowdown in the US, potential interruptions in Europe's gas supply, gasoline demand destruction in the work from home era, an SPR (strategic petroleum reserve) that needs to be refilled, there are a number of competing forces impacting oil and Francisco joins us to discuss how he believes they may influence price. Should Russia curtail gas supplies to Europe, the European economy may slow further but a scarcity of gas and power could also boost demand for alternative power sources, like diesel. Over the longer term, though, energy demand will face challenges as the world transitions to EVs and the peak for transportation fuel demand isn't that far off, something that will impact investment in new capacity and and eventually demand. You may also enjoy listening to the Merrill Perspectives podcast, featuring conversations on the big stories, news and trends affecting your everyday financial life. "Bank of America" and “BofA Securities” are the marketing names for the global banking businesses and global markets businesses (which includes BofA Global Research) of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Securities, trading, research, strategic advisory, and other investment banking and markets activities are performed globally by affiliates of Bank of America Corporation, including, in the United States, BofA Securities, Inc. a registered broker-dealer and Member of FINRA and SIPC, and, in other jurisdictions, by locally registered entities. ©2022 Bank of America Corporation. All rights reserved.