WEBVTT - Goldman Sachs to Exit Russia in Wall Street’s First Pullout 0:00:01.800 --> 0:00:04.440 This is Bloomberg Business Week. I'm Karl Masser and I'm 0:00:04.480 --> 0:00:07.280 Bloomberg Quick Takes Tim Stanovik. We're here every day bringing 0:00:07.320 --> 0:00:09.799 you the latest news from the world to business and finance, 0:00:09.840 --> 0:00:13.640 plus technology, politics, economics, all purtnising the power of Business 0:00:13.680 --> 0:00:17.119 Week reporters and editors, not to mention our journalists and 0:00:17.120 --> 0:00:20.000 analysts in more than one twenty countries. You can download 0:00:20.000 --> 0:00:23.479 Bloomberg Business Weekend iTunes, SoundCloud, or Bloomberg dot com. You 0:00:23.480 --> 0:00:25.439 can also listen to our radio show at two pm 0:00:25.480 --> 0:00:28.400 Eastern Time on the Bloomberg Radio or watch us on YouTube. 0:00:28.400 --> 0:00:33.800 Search Bloomberg Global News. The headlines crossing g UH gap, 0:00:34.000 --> 0:00:38.199 suspending deliveries to Russia and moving deliveries to Port Southern 0:00:38.280 --> 0:00:41.519 and Eastern ports specifically. And then you've get Disney uh 0:00:41.640 --> 0:00:44.760 taking steps to pause businesses in Russia that includes content 0:00:44.800 --> 0:00:48.000 and product licening licensing excuse me, and it also includes 0:00:48.040 --> 0:00:50.960 Disney cruise line activities. And then you have Tim our 0:00:51.040 --> 0:00:53.159 most read story on the Bloomberg and this has to 0:00:53.200 --> 0:00:56.160 do with the Wall Street Banks Goldman Sachses who were 0:00:56.200 --> 0:00:58.880 specifically talking about it. And it's an exclusive from shrined 0:00:59.000 --> 0:01:01.680 Raja and Sally bake Well as finance team leader for 0:01:01.920 --> 0:01:06.919 Bloomberg Near she's with us in the Bloomberg Interactive Broker's studio. Sally, 0:01:06.959 --> 0:01:09.360 you edited this story from shri Um. Talk to us 0:01:09.360 --> 0:01:13.360 a little bit about the significance of actually Goldman exiting 0:01:13.400 --> 0:01:15.479 Russia and what are the details with with an exit? 0:01:15.600 --> 0:01:18.679 Is this like done with Russia indefinitely or bring us 0:01:18.720 --> 0:01:21.160 into it. I think it does seem like it is 0:01:21.240 --> 0:01:23.680 done with Russia indefinitely. I don't think we can say 0:01:23.720 --> 0:01:26.880 that for absolute certain because that is quite a big 0:01:26.959 --> 0:01:30.320 step to permanently pull out of a country. Massive. It 0:01:30.480 --> 0:01:33.800 is massive. Although to note city has itself done that, 0:01:33.959 --> 0:01:36.639 it wasn't it was in Russia. It pulled out of Russia. 0:01:36.720 --> 0:01:40.039 We went back right now that bank is assessing um 0:01:40.200 --> 0:01:43.520 whether it stays in Russia or not um. So I 0:01:43.840 --> 0:01:46.119 think it is very significant that Goldman SAX has done 0:01:46.120 --> 0:01:49.960 this because actually no European banks have exited the country. 0:01:50.040 --> 0:01:53.320 They're all assessing their exposure, but they haven't actually made 0:01:53.360 --> 0:01:55.400 that step yet. How much exposure do these guys have 0:01:55.480 --> 0:01:57.400 to Russia and like how much business do they really 0:01:57.400 --> 0:02:00.800 get in Russia? So Wall Street banks have emphasized that 0:02:00.840 --> 0:02:03.880 actually their exposure is quite small. Um. I think the 0:02:04.000 --> 0:02:06.480 Goldman Sax story said that they have about six dred 0:02:06.520 --> 0:02:09.560 and fifty million of exposure there. Um City is the 0:02:09.639 --> 0:02:12.520 largest one. It has a very substantial presence with about 0:02:12.600 --> 0:02:16.120 three thousand workers. And if you recall City which is 0:02:16.160 --> 0:02:20.320 trying to um sell its retail operations, Russia is included 0:02:20.440 --> 0:02:23.120 in some of those, so that sale has obviously been 0:02:23.160 --> 0:02:27.200 a bit stalled by by the situation in the country. Sally, 0:02:27.240 --> 0:02:30.079 we just talked a little bit about the idea that 0:02:30.480 --> 0:02:33.600 Russia could start to move in and nationalize foreign firms. 0:02:34.080 --> 0:02:37.240 And I'm wondering about this decision. If it's a decision 0:02:37.280 --> 0:02:38.919 about Okay, well, we don't want to operate a bank 0:02:38.960 --> 0:02:40.919 in a place that you know it is doing something 0:02:41.000 --> 0:02:43.720 we disagree with, like Russia's because of Russia's invasion of Ukraine. 0:02:43.919 --> 0:02:45.880 Or is it also about business risk? And I'm not 0:02:45.960 --> 0:02:48.520 just talking customers when I'm talking like, oh wait a second, 0:02:48.639 --> 0:02:51.440 Russia could come in and actually sees this bank, right, 0:02:51.520 --> 0:02:53.520 I think that's probably a question that they are all 0:02:54.080 --> 0:02:57.040 debating right now. UM. And what is interesting that I 0:02:57.120 --> 0:02:59.400 think some of the banks are actually involved in the 0:02:59.520 --> 0:03:02.880 company who were suspending operations and putting out of the country. 0:03:02.880 --> 0:03:05.880 They're actually helping UM with that, so it is a 0:03:05.960 --> 0:03:09.040 sort of business stream for them as it is already UM. 0:03:09.120 --> 0:03:11.679 But I think that does complicate matters. I mean that 0:03:12.040 --> 0:03:15.320 they have to deal with the tremendously complicated Swift situation 0:03:15.800 --> 0:03:18.919 UM and those transactions that they might have to block, 0:03:19.120 --> 0:03:22.120 and you know, whether some of the transactions have less 0:03:22.320 --> 0:03:26.320 obvious sanctioned Russian entities involved in them, and then they 0:03:26.400 --> 0:03:29.840 have the sanctions to and then now they're going When 0:03:29.880 --> 0:03:33.079 you say Swift, you're referring to the global platform for 0:03:33.200 --> 0:03:35.840 messaging that banks used to communicate with one another that 0:03:36.200 --> 0:03:38.440 Russia was suspended from that. Jamie Diamonds did there are 0:03:38.520 --> 0:03:41.440 ways to get around, although that they aren't now that 0:03:41.560 --> 0:03:44.760 JP Morgan exactly exactly help me out here because and 0:03:44.960 --> 0:03:47.120 forgive me for being the cynic. I'm an optimist usually 0:03:47.160 --> 0:03:49.480 and I think good of people and entities. But what's 0:03:49.520 --> 0:03:52.120 interesting is it's not the first time we've seen the 0:03:52.160 --> 0:03:55.720 financial sector kind of back away from a troubled area 0:03:55.920 --> 0:03:59.320 of our world, only to get back in because there's 0:03:59.360 --> 0:04:02.120 money to be made. Is that ultimately, I mean, right now, 0:04:02.120 --> 0:04:04.680 there's sanctions right there's rules when there are sanctions implied 0:04:05.000 --> 0:04:09.080 against a certain area of the world. How do we 0:04:09.440 --> 0:04:12.720 think about that relationship right that global banks Wall Street 0:04:12.800 --> 0:04:16.440 banks specifically have with areas of the world. If there's 0:04:16.480 --> 0:04:19.520 money to be made, they will go there. I think 0:04:19.920 --> 0:04:24.600 UM City might again be correct. Yeah, I think They 0:04:24.920 --> 0:04:27.640 City is an example of that, maybe in the in 0:04:27.720 --> 0:04:29.160 the sense that it was in Russia and it came 0:04:29.200 --> 0:04:31.800 out and went back in again. UM. I suspect that 0:04:32.400 --> 0:04:36.080 memories become a little bit shorter when there is money 0:04:36.120 --> 0:04:40.760 on the table. UM. Obviously, the degree of severity of 0:04:40.839 --> 0:04:44.920 the responses from from everyone, from all corporations and from 0:04:45.000 --> 0:04:47.840 some banks that we're starting to see now UM do 0:04:48.040 --> 0:04:51.960 indicate perhaps a slight shift in philosophy about about something 0:04:52.040 --> 0:04:54.400 like this UM. But I guess time will tell as 0:04:54.400 --> 0:04:57.440 to whether it becomes a permanent UM sort of frame 0:04:57.520 --> 0:05:00.400 of mind about the Russia Ukraine situation. So, Sally, is 0:05:00.440 --> 0:05:02.840 this the first of every major bank to pull out? 0:05:03.000 --> 0:05:05.800 I think your going to look yet. This is the first, 0:05:05.920 --> 0:05:08.200 and I think it's going to look pretty strange if 0:05:08.320 --> 0:05:11.680 others don't follow from now. UM. So you know, we're 0:05:11.960 --> 0:05:14.960 chasing hard to see if we can pin down similar, 0:05:15.240 --> 0:05:17.600 similar decisions. I think every bank now has to be 0:05:17.720 --> 0:05:20.720 looking at this UM and assessing whether it's a question 0:05:20.800 --> 0:05:24.840 of winding down some of the business but keeping something there, 0:05:25.040 --> 0:05:27.840 or wholesale pulling out. I always think about you guys. 0:05:27.960 --> 0:05:29.680 I mean, you're a finance team leader. I can only 0:05:29.720 --> 0:05:32.360 imagine the discussions you guys are having around the desks 0:05:32.480 --> 0:05:34.960 or on virtual meetings as you look at this, you know, 0:05:35.000 --> 0:05:36.960 globally and certainly from the Wall Street banks. What are 0:05:37.000 --> 0:05:38.839 some of the issues you're thinking about as we continue 0:05:38.880 --> 0:05:41.520 to watch a situation that we fingers crossed had hoped 0:05:41.640 --> 0:05:44.680 would never happen, did happen, hoped it would wrap up soon, 0:05:44.800 --> 0:05:47.440 and now we're in we're entering our third week here 0:05:47.560 --> 0:05:49.760 or so. So I'm just curious, what are the discussions 0:05:49.760 --> 0:05:52.360 you guys have been having. UM. Well, A lot comes 0:05:52.440 --> 0:05:54.560 down to exposure. As I said at the beginning, a 0:05:54.640 --> 0:05:56.640 lot of the banks have said that their exposure is 0:05:56.720 --> 0:05:59.040 quite small. But as time goes on, maybe they start 0:05:59.080 --> 0:06:01.520 to realize they have more than they thought through various 0:06:01.720 --> 0:06:05.560 UM complicated financial instruments, UM and so and so we're 0:06:05.560 --> 0:06:08.760 thinking about that, UM just the very sort of physicality 0:06:08.880 --> 0:06:12.440 of what they have to do um to move people out. 0:06:12.880 --> 0:06:16.160 We had a great story today by Jenny Seraine about Visa. UM. 0:06:16.360 --> 0:06:19.800 The CEO gave this quite harrowing account of how they 0:06:19.880 --> 0:06:23.400 evacuated their staff from Ukraine, and you know they had 0:06:23.440 --> 0:06:26.920 to use mercenaries. Um. The CEO got a text while 0:06:27.000 --> 0:06:30.240 he was in church from President Zelenski asking for help, 0:06:30.320 --> 0:06:33.000 and of course Visa suspended its business there. UM. So 0:06:33.480 --> 0:06:35.360 I think it's sort of about a question of you know, 0:06:35.520 --> 0:06:40.600 exposure business direct or indirect business. How complicated it is 0:06:40.680 --> 0:06:43.880 to to wind that down um, and then the actual physics, 0:06:43.920 --> 0:06:47.200 physical presence. It is tough. Thank you so much, Sally 0:06:47.279 --> 0:06:49.320 Bell big Well. She is of course financed team leader 0:06:49.320 --> 0:06:54.440 at Bloomberg News. This is Bloomberg Business Week with Carol 0:06:54.520 --> 0:06:58.920 Masure and Bloomberg Quick Takes Tim Steinovic on Bloomberg Radio. 0:06:59.480 --> 0:07:02.200 Conversation that has been lost I think with Russia's invasion 0:07:02.240 --> 0:07:05.440 of Ukraine is what the COVID situation has been uh 0:07:05.680 --> 0:07:08.680 and we're fortunate should be joined by Rapauli LeMay, Associate 0:07:08.760 --> 0:07:11.360 scientist in the Department of International Health at Johns Hopkins 0:07:11.400 --> 0:07:13.720 Bloomberg School of Public Health, who joins us now on 0:07:13.800 --> 0:07:16.680 the phone from Baton Rouge, Louisiana. Dr Limay, it's good 0:07:16.680 --> 0:07:19.120 to have you back with us. How are you? Thank 0:07:19.160 --> 0:07:21.560 you so much for having me. It's great to be back. Well, 0:07:21.600 --> 0:07:24.240 let's talk a little bit about what your what your 0:07:24.280 --> 0:07:26.240 focus has been over these last couple of weeks, because 0:07:26.240 --> 0:07:28.840 we've been talking, of course, a lot about the global 0:07:29.200 --> 0:07:32.360 economic effects of Russia's invasion of Ukraine. But I think 0:07:32.480 --> 0:07:34.920 partly lost in that conversation has been what it means 0:07:35.000 --> 0:07:37.120 for the spread of COVID, especially as you see more 0:07:37.160 --> 0:07:40.560 than two million refugees flee Ukraine. Um, what have you 0:07:40.680 --> 0:07:43.920 been focusing on over the last couple of weeks. Yeah, No, 0:07:44.040 --> 0:07:45.520 I think you hit it right on the head. There's 0:07:45.560 --> 0:07:48.200 two million refugees that we know of, that number is 0:07:48.360 --> 0:07:51.280 likely likely higher than that, And I think the biggest 0:07:51.280 --> 0:07:53.320 issue that we're seeing is that we do know that 0:07:53.560 --> 0:07:56.920 conflict and infectious disease go hand in hand. So the 0:07:57.040 --> 0:07:59.640 concern really here is how do we make sure that 0:08:00.000 --> 0:08:02.920 as individuals are moving to different cities, to different locations, 0:08:03.000 --> 0:08:05.280 to different countries, that we're doing all that we can 0:08:05.360 --> 0:08:08.560 to protect them from from COVID. Previous to the invasion, 0:08:08.760 --> 0:08:12.240 I think the rates for primary dose series completion in 0:08:12.280 --> 0:08:15.120 the Ukraine were not great. So we were already dealing 0:08:15.160 --> 0:08:17.280 with a large proportion of the population that had not 0:08:17.400 --> 0:08:20.600 been vaccinated, and so this has really just been exacerbated 0:08:20.680 --> 0:08:22.360 and that then you add on this issue of not 0:08:22.440 --> 0:08:24.200 being able to get help supplies in so it's just 0:08:24.280 --> 0:08:27.560 a really dire situation. Yeah, no, dire situation on so 0:08:27.600 --> 0:08:29.520 many different levels. When I you know, anything to do 0:08:29.680 --> 0:08:31.920 right now with Ukraine, we think about obviously, we talk 0:08:31.920 --> 0:08:35.319 about so many different impacts on markets of course, and 0:08:35.520 --> 0:08:37.840 what businesses are doing. But of course it's a humanitarian 0:08:37.920 --> 0:08:41.199 story that we are all following so closely. We probably 0:08:41.280 --> 0:08:45.040 I also think it's just a reminder it's hard right now. 0:08:45.120 --> 0:08:46.960 I'm going to be very honest with you to remember 0:08:47.040 --> 0:08:48.839 that I'm in a pandemic. We all are still in 0:08:48.920 --> 0:08:51.439 a pandemic because of what's going on in the world 0:08:51.559 --> 0:08:54.200 right now. But you know, I am curious to you guys, 0:08:54.320 --> 0:08:57.480 like what will ultimately determine that we are beyond the 0:08:57.559 --> 0:09:00.880 pandemic stage as as a war all and moving to 0:09:00.960 --> 0:09:04.199 the endemic stage. You know, it's a really good question. 0:09:04.280 --> 0:09:06.280 And I think in parts of the United States, I 0:09:06.360 --> 0:09:08.800 think folks are already there. Um. A lot of states 0:09:08.840 --> 0:09:11.720 are repealing their mask mandates. For example, I mean here 0:09:11.760 --> 0:09:14.640 in the United States, we still have almost of the 0:09:14.679 --> 0:09:17.840 population of the adult population that has not gotten vaccinated. 0:09:18.440 --> 0:09:20.920 So it's a little bit concerning when you're seeing states 0:09:20.960 --> 0:09:23.680 doing that when you're also seeing an increase and perhaps 0:09:23.800 --> 0:09:26.280 a new sort of sub variant that's starting to rise. 0:09:26.920 --> 0:09:29.240 Um And so I think part of it. To me, 0:09:29.920 --> 0:09:32.400 no deaths are really acceptable. I think people think about 0:09:32.440 --> 0:09:34.199 this and say, you know what, only forty four children 0:09:34.240 --> 0:09:36.160 have died from COVID. I don't I think that number 0:09:36.200 --> 0:09:39.400 should be zero. I think other individuals would say, well, 0:09:39.440 --> 0:09:41.600 it's time for us to quote unquote get back to normal. Well, 0:09:41.640 --> 0:09:43.240 we have to do that in a way that's equitable, 0:09:43.320 --> 0:09:45.719 but that also allows for protections if we need them, 0:09:46.160 --> 0:09:47.839 which you know, again, a mask is one of the 0:09:47.920 --> 0:09:50.760 easiest mitigation measures that we really have and we should employ. 0:09:50.880 --> 0:09:53.240 But many states are repealing that right now. What's a 0:09:53.440 --> 0:09:55.560 what's a realistic way for us to think about how 0:09:55.640 --> 0:09:58.480 the pandemic actually ends? And Carol asked about it becoming 0:09:58.520 --> 0:10:00.640 an endemic, but but I think how much of the 0:10:00.720 --> 0:10:03.480 way we of our sentiment has to do with expectations, 0:10:03.480 --> 0:10:06.439 so help set expectations for us. Yeah, I mean, I 0:10:06.480 --> 0:10:08.720 think the most realistic way is that if we can 0:10:08.800 --> 0:10:11.640 make sure and think about community transmission and gets under 0:10:11.679 --> 0:10:14.679 a specific level, a threshold level, we do know it's 0:10:14.720 --> 0:10:16.280 going to be with us. So it's not something that 0:10:16.360 --> 0:10:19.120 we can eliminate, it's it's here to stay. I think 0:10:19.160 --> 0:10:21.800 the key here is how do we essentially protect individuals 0:10:21.840 --> 0:10:24.480 that are immuno compromised or or are at risk for 0:10:24.640 --> 0:10:27.000 severe COVID And so part of that has to do 0:10:27.120 --> 0:10:29.319 is we really need to make sure that community transmission 0:10:29.360 --> 0:10:31.719 rates are very low. That requires a bit of a 0:10:31.800 --> 0:10:34.160 nuanced approach. And what I mean by that is if 0:10:34.320 --> 0:10:37.040 you live in a particular area and rates are starting 0:10:37.080 --> 0:10:38.839 to increase again, then we need to be able to 0:10:38.960 --> 0:10:42.600 implement mitigation strategy strategies again. So that can be essentially 0:10:42.679 --> 0:10:46.040 put bringing the mask mandates back, ensuring that there's ventilation 0:10:46.120 --> 0:10:48.560 in schools, et cetera, and so forth. I'm hopeful because 0:10:48.600 --> 0:10:50.760 we're going into the warmer months that more people tend 0:10:50.800 --> 0:10:53.800 to be outside, there tends to be better ventilation, so 0:10:54.040 --> 0:10:56.679 we hopefully will see some good downward trends. But I 0:10:56.760 --> 0:10:58.880 think the question is going to be what happens in 0:10:58.960 --> 0:11:01.079 the fall when it starts to cold again. We to 0:11:01.120 --> 0:11:05.280 see other infectious pathogens like RSV right and influenza start 0:11:05.320 --> 0:11:07.439 to circulate again, and so I think a more realistic 0:11:07.520 --> 0:11:09.400 pathway is going to be. We do know it's here 0:11:09.480 --> 0:11:12.120 to stay. It will be a bit in my opinion, 0:11:12.160 --> 0:11:14.439 of using of these measures, but we also need to 0:11:14.480 --> 0:11:16.760 be prepared that some of these measors might be implemented 0:11:16.800 --> 0:11:19.360 again depending on transmission. We're probably yes, or now we're 0:11:19.360 --> 0:11:22.880 gonna get you need to get another booster. Oh goodness, 0:11:22.960 --> 0:11:25.680 that's a hard time. We do know that immunity, Wayne, 0:11:26.120 --> 0:11:27.680 So I think part of it will depend on how 0:11:27.760 --> 0:11:30.760 much transmission is occurring and how many people actually have immunity. 0:11:30.880 --> 0:11:33.560 All right, so I think kind of not known yet. Okay, 0:11:33.679 --> 0:11:36.559 that's fair. We're Pobaby LeMay. She's Associate scientists in the 0:11:36.600 --> 0:11:39.280 Department of International Health at Johns Hopkins Bloomberg School of 0:11:39.320 --> 0:11:42.400 Public Health. Of course, supported by Michael R. Bloomberg, founder 0:11:42.400 --> 0:11:46.040 of Bloomberg LP and Bloomberg Philanthropies. You're listening to Bloomberg 0:11:46.080 --> 0:11:49.760 Business Week with Carol Messer and Bloomberg Quick Takes, Tim 0:11:49.840 --> 0:11:53.360 Stinovic on Bloomberg Radio. But the new issue of Bloomberg 0:11:53.400 --> 0:11:55.280 Business Week it is out. In it a story by 0:11:55.360 --> 0:11:58.640 Bloomberg's Olivia Carvil, who you might remember reported out a 0:11:58.720 --> 0:12:02.480 revealing BW cover story that was last summer about airbnb 0:12:02.640 --> 0:12:05.480 is handling of violent crimes at its listings. Well, this week, 0:12:05.920 --> 0:12:07.920 she looks at sexual abuse in the world of show 0:12:08.040 --> 0:12:10.640 jumping and the efforts to Impede's Safe Sport, which was 0:12:10.840 --> 0:12:15.120 an organization set up to help young athletes victimized by misconduct. 0:12:15.200 --> 0:12:18.080 Olivia Carville is an investigative reporter for Bloomberg new She's 0:12:18.120 --> 0:12:20.840 with us in the Bloomberg Interactive Broker Studio. Joel Webber 0:12:20.920 --> 0:12:23.000 is editor at Bloomberg Business Week. He's also with us 0:12:23.040 --> 0:12:26.000 in the Bloomberg Interactive Broker Studio. Olivia's story featured in 0:12:26.040 --> 0:12:28.720 the new issue of Business Week magazine, available on newsstands, 0:12:28.760 --> 0:12:32.240 on the Bloomberg and at Bloomberg dot com slash business Week. Joel, 0:12:32.800 --> 0:12:37.440 this is a powerful story. It's one about an institution, uh, 0:12:37.559 --> 0:12:40.800 and one about an institution being set up to try 0:12:40.840 --> 0:12:43.360 to help that institution. There are a lot of familiar 0:12:43.400 --> 0:12:46.760 threads here. Yeah, it's um, it's a rarefied world. The 0:12:47.000 --> 0:12:50.240 sport that we're talking about here is equestrian Uh, it's 0:12:50.240 --> 0:12:54.240 an Olympic sport. Um. Uh. Olivia's uh Carverlos reporting on 0:12:54.320 --> 0:12:57.760 this has just been an amazing one. UM was was 0:12:58.520 --> 0:13:00.959 really just honored to the ship in the magazine and 0:13:01.480 --> 0:13:05.520 and also talk about it UM today because ultimately a 0:13:05.640 --> 0:13:08.200 lot of this legacy of what what she writes about 0:13:08.200 --> 0:13:11.000 in this story actually goes back to Larry Nasar and 0:13:11.760 --> 0:13:15.559 what happened in the gymnastics world UM, and there have 0:13:15.720 --> 0:13:18.160 been there There have been many things that have changed 0:13:18.240 --> 0:13:20.760 since that moment um a couple of years ago, one 0:13:20.840 --> 0:13:24.080 being this organization Safe Spoort that was founded by US 0:13:24.160 --> 0:13:31.360 Congress to basically help police sex abuse and protect young athletes. UM. 0:13:33.000 --> 0:13:36.920 But what's happened and what Olivia's reporting revealed is that 0:13:37.040 --> 0:13:42.520 there's sort of one community that has resisted any sense 0:13:42.640 --> 0:13:46.920 of discussion about this and has not liked watching its 0:13:46.960 --> 0:13:50.280 heroes fall. So Olivia bring us into the story and 0:13:50.960 --> 0:13:54.000 what happened at the stables? Yeah, sure, and thanks so 0:13:54.120 --> 0:13:56.600 much for having me on. This was a really important 0:13:56.760 --> 0:13:59.080 story from my prospective as well, just to be able 0:13:59.120 --> 0:14:02.559 to tell the young writers UM stories to hear it 0:14:02.640 --> 0:14:05.280 in their own words, what happened to them, what does 0:14:05.360 --> 0:14:08.520 grooming look like to them, and why their community was 0:14:08.760 --> 0:14:12.320 in in a sense, actually attacking them in some cases, 0:14:12.920 --> 0:14:16.560 I think with an equestrian we have seen really elite 0:14:17.160 --> 0:14:20.680 sport be torn apart by um by safe sport be 0:14:20.800 --> 0:14:24.520 torn apart by its history. And here you've actually got 0:14:24.680 --> 0:14:28.280 some you know, pretty wealthy individuals who have spent their 0:14:28.400 --> 0:14:32.240 life within the sport coming out and attacking safe sport, 0:14:32.320 --> 0:14:36.360 this watchdog agency and also questioning the antics of some 0:14:36.520 --> 0:14:39.680 of these survivors, which has been really sad to see. Um, 0:14:40.000 --> 0:14:42.480 I'm kind of stucked that this hasn't come out sooner. Again, 0:14:42.600 --> 0:14:44.760 it's like what it was once again, a situation of 0:14:44.800 --> 0:14:48.080 the institution protecting itself. Yeah, that's right. I think if 0:14:48.120 --> 0:14:51.040 you look back in Olympic sporting communities, there has been 0:14:51.080 --> 0:14:54.760 a history of prominent figures who have been accused of 0:14:54.800 --> 0:14:58.280 sexual misconduct being covered up by the national governing bodies, 0:14:58.360 --> 0:15:01.200 and we've certainly seen that within equestrian Some of the 0:15:01.280 --> 0:15:05.000 most prominent figures that we mentioned in this piece, um, 0:15:05.200 --> 0:15:08.600 you know headhead complaints about sexual misconduct raised against them, 0:15:09.000 --> 0:15:11.600 but it had never really resulted in them being banned 0:15:11.720 --> 0:15:15.120 at all. And yet with the creation of Safe Sport, 0:15:15.560 --> 0:15:19.200 we are seeing some of these individuals finally being held accountable, 0:15:19.400 --> 0:15:22.840 and the sport doesn't like that. Olivia. The pieces filled 0:15:22.880 --> 0:15:27.480 with powerful but harrowing anecdotes and stories about people who 0:15:27.840 --> 0:15:31.200 were affected, but also some really startling statistics. Through the 0:15:31.320 --> 0:15:35.240 end of seven of the one thousand two sanctions that 0:15:35.280 --> 0:15:37.920 the Center had handed down and publicized, we're talking Safe 0:15:37.920 --> 0:15:40.640 Sport here um in its discipline and database, had been 0:15:40.640 --> 0:15:43.720 against members of the US Equestrian Federation. By comparison, members 0:15:43.760 --> 0:15:45.240 of the U S t A, the U S Tennis 0:15:45.240 --> 0:15:48.680 Associations eight times it's big have only received thirty five 0:15:48.800 --> 0:15:52.720 Safe Sport sanctions. What's going on with equestrian Yeah, I 0:15:52.760 --> 0:15:59.600 think we're seeing a bigger number of equestrians sanctioned by 0:15:59.680 --> 0:16:02.960 Safe Sport than other sports, and that is causing a 0:16:03.080 --> 0:16:05.640 pushback from within the sport as well. I think that 0:16:05.760 --> 0:16:08.840 this is a sport that has historically been very insular, 0:16:09.280 --> 0:16:12.440 very exclusive. They don't like to let outsiders in. It 0:16:12.560 --> 0:16:15.400 was quite a challenging story to write because it's hard 0:16:15.440 --> 0:16:18.760 to break into this community, and so when they started 0:16:18.800 --> 0:16:21.640 to be sanctioned from historic cases going back to the 0:16:22.280 --> 0:16:27.680 seventies eighties. The sport started to fight against that. It's 0:16:27.800 --> 0:16:30.800 a sporting community that doesn't like being told what to 0:16:30.920 --> 0:16:34.040 do and is willing to push back and challenge those 0:16:34.120 --> 0:16:36.520 in power when it doesn't believe they're getting it right. 0:16:37.360 --> 0:16:43.160 So Jury's Cologne was appointed chief executive officer of Safe Sport. 0:16:43.760 --> 0:16:46.440 Had a background where she was. She previously had worked 0:16:46.440 --> 0:16:49.280 at the National Center for Missing and Exploited Children. What 0:16:49.520 --> 0:16:53.920 was her experience coming in to Safe Sport and taking 0:16:53.960 --> 0:16:57.200 over the rens of the organization. Yeah, Juris was a 0:16:57.320 --> 0:17:02.360 pretty incredible interview. Actually, she um she was shocked when 0:17:02.480 --> 0:17:05.239 she came in and started running Safe Sport. She had 0:17:05.280 --> 0:17:08.240 been working in child's safety before, but she had never 0:17:08.400 --> 0:17:13.520 experienced so much animosity, so much hostility, so much anger. 0:17:13.960 --> 0:17:17.480 Because when you're working within child's safety at the elite 0:17:17.520 --> 0:17:21.520 sporting level, these are people who want their children to win. 0:17:22.000 --> 0:17:26.040 There is a sense of desire to win, but also ambition. 0:17:26.800 --> 0:17:30.320 This is particularly equestrian. It's a community of very rich 0:17:30.400 --> 0:17:34.760 and very powerful individuals, and they did push back against 0:17:34.880 --> 0:17:38.560 Juriss And she actually mentioned to me and in her interview, 0:17:38.720 --> 0:17:41.640 how on her first week on the job, she received 0:17:42.000 --> 0:17:44.880 a call from the mother of a young writer who 0:17:45.040 --> 0:17:49.600 wanted her daughter's trainer to be reinstated. He had been 0:17:49.640 --> 0:17:52.440 removed for sexual misconduct and she wanted him back in 0:17:52.520 --> 0:17:55.680 the job because she wanted her child to win. And 0:17:55.800 --> 0:17:58.879 that's something that Dress had never really experienced before in 0:17:59.119 --> 0:18:02.399 any any of her previous roles in this area. And 0:18:03.080 --> 0:18:05.119 let's let's kind of talk about who she's had to 0:18:05.160 --> 0:18:08.359 struggle with, the critics, the people who are critical of 0:18:08.440 --> 0:18:10.879 Safe Sport. What's the rationale, what are they objecting to? 0:18:11.240 --> 0:18:14.919 And just unfortunately have about twenty seconds. Sure, the critics 0:18:14.960 --> 0:18:18.320 are saying safe Sport less transparency, it lecks to process. 0:18:18.480 --> 0:18:21.560 They believe that it is unconstitutional in the US to 0:18:21.680 --> 0:18:24.919 have an organization set up that is labeling people guilty 0:18:25.080 --> 0:18:28.600 before proven innocent. And they're coming after juriss and they're 0:18:28.640 --> 0:18:31.680 coming after Safe Sport for that reason. I'm just gonna 0:18:31.720 --> 0:18:35.000 say a most read, a Bloomberg big take, a must read, 0:18:35.280 --> 0:18:39.800 and it's in the new issue of Bloomberg Business Week magazine. Unbelievable, Olivia, 0:18:39.840 --> 0:18:42.680 Thank you so much. Olivia Carvil, investigative reporter, Bloomberg News 0:18:42.680 --> 0:18:44.280 and of course our thanks to do A. Weber, editor 0:18:44.320 --> 0:18:49.760 of the magazine. Yeah, how about you let me drive? No, 0:18:49.960 --> 0:18:59.840 no hone please, I want to drive. It's good question 0:19:00.000 --> 0:19:10.520 the drive to the Globe on Blueberg Radio. All Right, 0:19:10.560 --> 0:19:12.760 just about ten and a half minutes left in today's 0:19:12.760 --> 0:19:15.320 trading session, getting ready to wrap up another volatile day. 0:19:15.320 --> 0:19:17.480 We're definitely off our loads of the session, as you 0:19:17.520 --> 0:19:20.280 just heard from Charlie on those major equity averages. But 0:19:20.400 --> 0:19:23.000 tech really still having a tough time. Could be as 0:19:23.080 --> 0:19:25.879 we've seen Rasco higher here today, Tim, it certainly could be. 0:19:26.080 --> 0:19:28.320 Let's get into it with Tracy McMillian, head of Global 0:19:28.359 --> 0:19:31.720 act Allocation Strategy at Wells Fargo Investment Institute. You and 0:19:31.800 --> 0:19:35.119 joins us on the phone from Winston Salem, North Carolina. Tracy, 0:19:35.200 --> 0:19:39.040 how are you? I'm well, Thank you, Thanks for having me. Okay, 0:19:39.080 --> 0:19:41.720 So a lot of superlatives over the last few weeks here, 0:19:42.040 --> 0:19:44.760 a lot of volatility. Uh, it's difficult to kind of 0:19:45.119 --> 0:19:47.920 understand what investors are thinking. Um, what's your read on 0:19:47.960 --> 0:19:55.680 the situation? Yah? Well, we continue this favorite quality across 0:19:55.920 --> 0:20:00.240 our equity allocations in particular, and for us that means 0:20:00.440 --> 0:20:04.560 us that were international. Um, it means that within the US, 0:20:04.640 --> 0:20:07.360 we're favoring things like large caps and mid caps over 0:20:07.480 --> 0:20:11.919 small caps um and just today we downgraded emerging market 0:20:12.200 --> 0:20:15.159 to an unfavorable position, and what that means is that 0:20:15.280 --> 0:20:20.080 we're taking some money out of emerging market. We're putting 0:20:20.119 --> 0:20:22.960 it into short term and intermediate term bonds while we 0:20:23.080 --> 0:20:26.440 played out some of this disruption with a lower risk profile. 0:20:27.160 --> 0:20:31.240 Is there a point where you say, Okay, this is 0:20:31.320 --> 0:20:35.080 going to have a bigger impact on the second half 0:20:35.119 --> 0:20:36.720 The I m F already has come out. We talked 0:20:36.760 --> 0:20:38.880 about this a little bit earlier with our TV colleagues 0:20:39.600 --> 0:20:43.080 as they are putting out there um our thoughts about 0:20:45.000 --> 0:20:49.000 they say they will likely cut world GDP outlook because 0:20:49.040 --> 0:20:51.680 of the Ukraine War. We did have the g E 0:20:51.840 --> 0:20:54.639 CEO on our air with David Weston, and you know, 0:20:54.760 --> 0:20:57.800 they have put out their fiscal year outlook because they 0:20:57.840 --> 0:20:59.959 say that's based on the things that they can control 0:21:00.040 --> 0:21:03.520 hole and have a good grasp of, but again pointing 0:21:03.560 --> 0:21:06.440 out the Ukraine War and that that volatility is something 0:21:06.560 --> 0:21:10.240 that you know, is a variable that nobody can ignore. 0:21:10.520 --> 0:21:13.720 So when do you get to a point where you say, okay, 0:21:13.800 --> 0:21:16.159 this is going to be a different year and definitely 0:21:16.440 --> 0:21:20.560 a different second half. We didn't kind of re evaluate. Yeah, 0:21:20.640 --> 0:21:24.280 I think we're there on the direct impacts outside of 0:21:24.440 --> 0:21:29.920