WEBVTT - Pentagon Sending 700 Marines to Counter Los Angeles Protests 0:00:02.520 --> 0:00:07.040 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:08.920 --> 0:00:13.240 This is Bloomberg business Week Daily reporting from the magazine 0:00:13.240 --> 0:00:17.880 that helps global leaders stay ahead with insight on the people, companies, 0:00:17.920 --> 0:00:22.800 and trends shaping today's complex economy. Plus global business finance 0:00:22.840 --> 0:00:26.160 and tech news as it happens. The Bloomberg Business Week 0:00:26.239 --> 0:00:31.760 Daily Podcast with Carol Masser and Tim Stenebeck on Bloomberg Radio. 0:00:32.440 --> 0:00:35.199 Los Angeles entered its fourth day of unrest sparked by 0:00:35.240 --> 0:00:39.360 immigration raids, with President Trump suggesting that Gavin Newsom should 0:00:39.360 --> 0:00:42.400 be arrested for his response, and the governor suing the 0:00:42.400 --> 0:00:46.400 administration for deploying National Guard troops to the city. Separately, 0:00:46.680 --> 0:00:50.240 the Pentagon is mobilizing five hundred active duty Marines to 0:00:50.280 --> 0:00:53.519 help reinforce the National Guard in response to protests in 0:00:53.560 --> 0:00:56.560 Los Angeles. Just according to a person familiar with the matter. 0:00:56.680 --> 0:00:59.280 All right, so let's get to it with Sarah McGregor. 0:00:59.360 --> 0:01:01.840 She is with USh. She's Bloomberg News National Team Managing 0:01:01.920 --> 0:01:03.960 editor based in Los Angeles, and she joins us from 0:01:04.000 --> 0:01:07.200 the LA Bureau. Sarah, you know we've talked with you 0:01:07.240 --> 0:01:10.959 before different moments of crisis in and around the LA area. 0:01:11.840 --> 0:01:12.400 Just talked to us. 0:01:12.400 --> 0:01:15.440 First of all, a little perspective from you and this 0:01:15.600 --> 0:01:17.039 city and what you. 0:01:17.040 --> 0:01:18.640 Have seen over the last few days. 0:01:20.200 --> 0:01:22.240 Absolutely. I think the last time we spoke it was 0:01:22.319 --> 0:01:25.000 during the LA wildfires, when the California National Guard we're 0:01:25.040 --> 0:01:27.240 here to protect people, and of course now we're seeing 0:01:27.240 --> 0:01:29.760 them in the city at the order of Trump, against 0:01:29.760 --> 0:01:34.319 the wishes of Newsome, trying to quell demonstrations that are 0:01:34.319 --> 0:01:36.640 across the city. And just to put into context today, 0:01:37.000 --> 0:01:40.080 over the weekend, you know, we did see some violence, 0:01:40.120 --> 0:01:42.680 some clashes with the police, more than thirty people arrested 0:01:42.720 --> 0:01:46.760 at those but you know, it's quite isolated pockets downtown LA, 0:01:47.240 --> 0:01:49.520 just areas south of the city. This is in response 0:01:49.560 --> 0:01:53.520 to immigration rates. Today. What we're seeing are largely peaceful protests. 0:01:53.520 --> 0:01:55.640 So far, there's a lot of large gathering in downtown 0:01:55.760 --> 0:01:58.440 LA but so far we aren't seeing that sort of 0:01:59.080 --> 0:02:02.760 violence that picked up later in the day yesterday. So, 0:02:03.280 --> 0:02:05.040 you know, just to put that into perspective. As the 0:02:05.040 --> 0:02:07.480 Marines are now being sent actually we are reporting it's 0:02:07.520 --> 0:02:11.520 seven hundred now we've gotten more information that it's now 0:02:11.560 --> 0:02:13.880 seven hundred and so apparently they're on their way to 0:02:14.000 --> 0:02:17.360 LA and that definitely sets the stage for tensions to rise. 0:02:18.160 --> 0:02:21.200 You know, I think people outside of the Los Angeles area, 0:02:21.240 --> 0:02:26.600 and perhaps in Los Angeles, they see images of unrest 0:02:26.639 --> 0:02:29.520 in LA and if they're of a certain age, maybe 0:02:29.560 --> 0:02:31.880 they think of nineteen ninety two and what we saw 0:02:31.919 --> 0:02:34.639 in the wake of the video of Rodney King being 0:02:34.680 --> 0:02:37.639 beaten and the riots that happened in April and May 0:02:38.280 --> 0:02:41.880 of that year. Can you contextualize that and just put 0:02:42.240 --> 0:02:45.000 this into historical context of what the city has seen. 0:02:47.080 --> 0:02:49.440 I don't want to downplay anything, because I do know, 0:02:49.639 --> 0:02:52.200 you know, police officers have been hurt, and they're you know, 0:02:52.240 --> 0:02:55.000 the security forces have definitely had to respond, and they've 0:02:55.040 --> 0:02:58.040 thrown bricks. You know, different charges have been laid, including 0:02:58.200 --> 0:03:01.480 attempt at murder for throwing them alto So there's definitely 0:03:01.520 --> 0:03:05.560 some serious, serious counts here. But ultimately, you know, the 0:03:05.639 --> 0:03:08.320 city is widely calm, and I think it's just sort 0:03:08.320 --> 0:03:10.680 of the comparable now of sending in the National Guard, 0:03:10.760 --> 0:03:13.760 now sending in Marines that really it doesn't seem to 0:03:13.760 --> 0:03:16.680 be a match in terms of and that's what the 0:03:16.680 --> 0:03:19.040 Trump the News administration would say. It doesn't really seem 0:03:19.040 --> 0:03:20.480 to be a match in terms of what the needs 0:03:20.520 --> 0:03:23.320 are for the security forces. So that's not to say 0:03:23.320 --> 0:03:25.800 that things could escalate, But I think the worry from Newsom, 0:03:25.880 --> 0:03:28.720 from Marbez is that it's actually by sending in the 0:03:28.760 --> 0:03:31.799 big guns that things will actually attentions will arise and 0:03:31.840 --> 0:03:34.000 people will lose their cool, and so I think they're 0:03:34.000 --> 0:03:36.400 more worried that the show of force will actually make 0:03:36.400 --> 0:03:37.520 the situation even worse. 0:03:38.960 --> 0:03:43.280 You mentioned today, Sarah that we're seeing some peaceful protests. 0:03:43.360 --> 0:03:48.560 I'm just curious, though, have the protests grown in numbers. 0:03:48.800 --> 0:03:51.040 It is really hard to tell because they are spread out. 0:03:51.320 --> 0:03:53.440 It does seem in sort of similar numbers from day 0:03:53.480 --> 0:03:56.360 to day in terms of protesters. Today, we're actually seeing 0:03:56.360 --> 0:03:58.840 a large number of people in downtown LA protesting a 0:03:58.920 --> 0:04:01.520 labor leader, a major labor leader, who has been detained. 0:04:02.200 --> 0:04:04.600 He's been charged actually now with obstructing the pathway of 0:04:04.640 --> 0:04:07.520 a federal vehicle and so he's going to face charges 0:04:07.520 --> 0:04:10.960 on that, and some local leaders like Maxine Waters, some 0:04:11.040 --> 0:04:13.800 Democratic leaders Adam Schiff, have called for his release, have 0:04:13.880 --> 0:04:16.840 asked to enter the detention center where he's being held, 0:04:16.880 --> 0:04:19.560 and they were denied. So I think that's raising some 0:04:19.800 --> 0:04:23.240 tensions on a whole other level of just a bit 0:04:23.279 --> 0:04:26.800 of an outcry about this labor leader being detained, Sir. 0:04:26.880 --> 0:04:28.800 When we last checked in with you regularly, it was 0:04:28.880 --> 0:04:33.400 during the devastating wildfires in and around the Los Angeles area. 0:04:33.880 --> 0:04:37.320 At that time, Mayor Karen Bass was getting a lot 0:04:37.320 --> 0:04:41.240 of criticism from folks about the city's response to the fires. 0:04:41.480 --> 0:04:44.280 How would you characterize the role that she's taken during 0:04:44.320 --> 0:04:47.360 these during this latest episode that we're speaking to you about, 0:04:47.400 --> 0:04:48.280 what has she been doing? 0:04:50.120 --> 0:04:52.960 I think because you know, the exchange, especially today and 0:04:53.040 --> 0:04:57.080 social media, has largely been between Newsom and Trump. Newsom's 0:04:57.200 --> 0:04:59.279 you know, just sent a tweet out, for instance, with 0:04:59.279 --> 0:05:01.039 a picture of some of the National Guards sleeping on 0:05:01.080 --> 0:05:03.280 the floor, saying Trump sent these people here and now 0:05:03.279 --> 0:05:05.800 they have no place to rest, they have no food. 0:05:06.720 --> 0:05:08.560 You know, it's sort of back and forth between Trump 0:05:08.600 --> 0:05:11.600 and Newsome. I think that's sort of overshadowed. I think 0:05:11.640 --> 0:05:14.120 the efforts locally on the ground of what folks are doing, 0:05:14.200 --> 0:05:17.440 at least from a national perspective. So you know, Karen 0:05:17.440 --> 0:05:20.039 Bess has been up front, she's been holding press conferences. 0:05:20.960 --> 0:05:23.240 You know, there hasn't been a criticism I think about 0:05:23.279 --> 0:05:25.720 the LAPG, the LA Police Force and how they've been 0:05:25.720 --> 0:05:31.240 handling the situation at large outside of Trump and his administration. 0:05:31.360 --> 0:05:34.159 So I think here at home, there isn't a lot 0:05:34.160 --> 0:05:37.000 of analysis yet, I suppose of how it's being handled 0:05:37.040 --> 0:05:38.760 at a local level, but it does seem like it's 0:05:39.440 --> 0:05:41.719 you know, calm heads, Sarah. 0:05:41.800 --> 0:05:44.080 I am also curious about kind of the mood and 0:05:44.160 --> 0:05:48.720 the view point of most Los Angelinos, if you will. 0:05:49.160 --> 0:05:53.040 It's a diverse city, Folks from many walks of life 0:05:54.040 --> 0:05:57.080 in Los Angeles, So I'm just curious what is the 0:05:57.120 --> 0:06:00.440 public's view, if there's a general view when it comes 0:06:00.480 --> 0:06:01.719 to immigration right now. 0:06:03.360 --> 0:06:06.200 Well, you know, all of these these protested stem from 0:06:06.200 --> 0:06:09.080 some raids on Friday and the public seeing you know, 0:06:09.160 --> 0:06:12.400 seeing the ICE folks mobilizing around home depots or the 0:06:12.440 --> 0:06:15.880 fashion district in LA to capture folks, and so that 0:06:15.960 --> 0:06:19.919 anger is palpable. That's where this all stemmed from. You know, 0:06:19.960 --> 0:06:23.080 we have been receiving la USD. The school district has 0:06:23.240 --> 0:06:25.640 had a press conference today, you know, telling people they're 0:06:25.640 --> 0:06:27.760 not going to cooperate with ICE in terms of you know, 0:06:28.160 --> 0:06:31.039 handing over anyone or giving names and numbers of you know, 0:06:31.120 --> 0:06:33.679 parents in the school district. They're going to protect the kids. 0:06:33.680 --> 0:06:36.200 So I do think it sort of raises that awareness 0:06:36.440 --> 0:06:38.719 in a way. I think there have been isolated raids 0:06:38.720 --> 0:06:41.600 in LA, but we haven't really felt the brunt of 0:06:42.000 --> 0:06:45.040 this deportation campaigned by Trump, and I think as they've 0:06:45.040 --> 0:06:47.040 scaled things up to try and reach numbers, to try 0:06:47.080 --> 0:06:49.279 and reach their three thousand and day minimum of arrests, 0:06:50.279 --> 0:06:52.640 we started to see LA be ground zero for that. 0:06:54.440 --> 0:06:56.640 Yeah, it's been remarkable to see play out over the 0:06:56.720 --> 0:06:59.560 last four days. Governor Cuomo, who's running for mayor of 0:06:59.640 --> 0:07:02.640 New York City, was on Bloomberg Surveyllance a little earlier, Sarah, 0:07:02.640 --> 0:07:06.560 and he made the point that you might actually see 0:07:06.800 --> 0:07:09.520 He made the point that what you see in Los 0:07:09.560 --> 0:07:11.800 Angeles you could see in New York City next. And 0:07:11.840 --> 0:07:14.360 I'm just wondering how you view a comment such as 0:07:14.440 --> 0:07:16.960 that with regard to what you've seen the federal government 0:07:16.960 --> 0:07:19.680 and what we've reported the federal government do in Los Angeles. 0:07:21.640 --> 0:07:24.080 Absolutely, I mean we are watching, out of course, to 0:07:24.120 --> 0:07:26.520 see if sort of protests breakout in other cities and 0:07:26.560 --> 0:07:28.920 solidarity of what's happening in LA. We saw some protests 0:07:28.920 --> 0:07:32.000 in San Francisco, for example, yesterday where sixty people were arrested. 0:07:32.560 --> 0:07:34.720 So it is possible, especially in some of these blue 0:07:34.760 --> 0:07:37.000 states where they have sanctuary city policies that the Trump 0:07:37.000 --> 0:07:39.640 administration has been very critical of. 0:07:39.800 --> 0:07:40.000 There. 0:07:40.440 --> 0:07:42.320 You know, it is something to watch out for whether 0:07:42.360 --> 0:07:45.280 similar things will will unfold in these cities. 0:07:46.200 --> 0:07:48.080 All right, we're going to leave it on that note. Listen, Sarah, 0:07:48.080 --> 0:07:50.000 thanks so much for always keeping us up to date. 0:07:50.000 --> 0:07:53.960 Sarah McGregor. She is our Bloomberg News National Team managing editor. 0:07:54.000 --> 0:07:56.320 She's based in Los Angeles and she's been joining us 0:07:56.600 --> 0:07:58.320 from our LA bureau. 0:07:58.840 --> 0:08:02.240 You're listening to the Blue Bloomberg Business Week Daily podcast. 0:08:02.480 --> 0:08:05.200 Catch us live weekday afternoons from two to five eas 0:08:05.280 --> 0:08:08.920 during Listen on Applecarplay and Android Otto with the Bloomberg 0:08:08.960 --> 0:08:13.400 Business app, or watch us live on YouTube. 0:08:14.040 --> 0:08:16.480 Well, trade talk between the US and China stretched on 0:08:16.560 --> 0:08:19.880 in London. The US signaled a willingness to remove restrictions 0:08:19.920 --> 0:08:22.520 on some tech ex sports in exchange for assurances that 0:08:22.640 --> 0:08:26.160 China is easing limits on rare earth shipments. The meeting 0:08:26.200 --> 0:08:29.200 began just after one pm local time. It's expected to 0:08:29.280 --> 0:08:32.439 extend into the UK evening. It may restart on Tuesday, 0:08:32.480 --> 0:08:34.760 Caro if necessary. We got a great voice on this. 0:08:34.880 --> 0:08:37.240 We do indeed back with us, Dexter Tiff Roberts. He's 0:08:37.320 --> 0:08:40.560 non resident Senior Fellow at the Atlanta Council's Global China Hub. 0:08:40.600 --> 0:08:42.880 He's also author of Trade War, a weekly newsletter on 0:08:42.960 --> 0:08:46.079 China's economy. He's also professor of Chinese politics at the 0:08:46.120 --> 0:08:50.800 University of Montana. He's former Bloomberg BusinessWeek China bureau chief. 0:08:50.840 --> 0:08:53.360 He lived in Beijing for two decades covering it all 0:08:53.400 --> 0:08:56.120 for Business Week, and he's author of the twenty twenty book. 0:08:56.120 --> 0:08:58.920 We've talked to him about this the myth of Chinese capitalism, 0:08:59.240 --> 0:09:01.800 the worker, the fact, and the future of the world. Sorry, 0:09:01.840 --> 0:09:04.840 we're out of time interview, but this is why you 0:09:04.880 --> 0:09:06.200 want to talk to him about China. 0:09:06.720 --> 0:09:09.520 He joins us from Mizzola, Montana. 0:09:09.640 --> 0:09:11.280 Tip. Good to have you back with us. 0:09:12.440 --> 0:09:17.560 Yeah, these negotiations between the US and China, what for 0:09:17.760 --> 0:09:21.080 you is what you think we should all have on 0:09:21.120 --> 0:09:22.040 our radar here? 0:09:23.880 --> 0:09:27.240 Well, it's all from the US perspective. As we know, 0:09:27.320 --> 0:09:31.320 it's all about rare earth exports. We we've got ourselves 0:09:31.320 --> 0:09:34.800 in a situation over a number of years where China 0:09:35.960 --> 0:09:41.000 absolutely dominates the production and the processing of these crucial, 0:09:42.080 --> 0:09:45.280 crucial rare earths that you know, we need for every 0:09:45.320 --> 0:09:47.520 almost everything you can, you know, you name it, we 0:09:47.600 --> 0:09:52.360 need it for. We need rare earth smartphones, uh, you know, 0:09:52.440 --> 0:09:59.199 electric vehicles, robot x miss missile systems. You know, defense 0:09:59.600 --> 0:10:00.600 need to as well. 0:10:00.360 --> 0:10:03.800 Tiff if that's the case, and we spoke to Graceland 0:10:03.800 --> 0:10:06.960 Baskren at csis a little earlier in our program. She 0:10:07.000 --> 0:10:10.679 joined us from South Africa and we talked specifically about rareers, 0:10:10.960 --> 0:10:13.959 but in the context of trade negotiations and who actually 0:10:14.440 --> 0:10:16.960 has the leverage since for the US this is all 0:10:17.000 --> 0:10:19.079 about rare earths, does that mean that China has the 0:10:19.160 --> 0:10:20.160 upper hand in your view? 0:10:21.760 --> 0:10:25.319 Well, I actually do think China has a little bit 0:10:25.360 --> 0:10:28.319 more leverage than the US, but it's close. We had 0:10:28.320 --> 0:10:33.840 the numbers earlier this week. Chinese exports disappointed. You know, 0:10:33.880 --> 0:10:36.560 we saw this dramatic I think it was thirty four 0:10:36.600 --> 0:10:39.160 and a half percent drop in exports to the US. 0:10:40.400 --> 0:10:42.400 You know, they've been doing a little bit better because 0:10:42.400 --> 0:10:44.920 they've been selling a lot to Southeast Asia, the EU, 0:10:45.000 --> 0:10:47.079 and Africa, but not well enough. 0:10:47.520 --> 0:10:50.200 So China. It's not like China's not hurting. 0:10:50.440 --> 0:10:54.040 But I do think on the US side, there's these 0:10:54.160 --> 0:10:56.880 real fears about inflation if the trade war goes on. 0:10:57.679 --> 0:11:01.240 We saw the relatively weak job report, and we got 0:11:01.240 --> 0:11:04.560 something called the midterm elections coming up, and China, as 0:11:04.600 --> 0:11:07.040 we know, doesn't have any mid term elections ahead. 0:11:09.200 --> 0:11:10.640 Well, I love that you went there, and I was 0:11:10.640 --> 0:11:14.400 going to ask you, you know, TIV, what about you know, 0:11:14.640 --> 0:11:17.320 what is it about the grand kind of Chinese experiment 0:11:17.400 --> 0:11:21.040 and mission that has happened under President Xi? As you said, 0:11:21.040 --> 0:11:24.080 there's no midterms. He's pretty well entrenched and ensconced in 0:11:24.080 --> 0:11:27.640 his position. But what is it about his mission, his 0:11:27.880 --> 0:11:33.280 great experiment and you know kind of goal in creating 0:11:33.480 --> 0:11:35.360 the Chinese economy that we look at today? 0:11:35.440 --> 0:11:37.160 What about it works? 0:11:37.679 --> 0:11:38.360 What doesn't? 0:11:40.320 --> 0:11:42.600 Well, first of all, I would just say that grand 0:11:42.720 --> 0:11:46.160 goal it's clear She jene Ping has and has been 0:11:46.640 --> 0:11:51.000 you know, vocalized and publicized, often more often in Chinese 0:11:51.040 --> 0:11:54.640 than English. But they're very clear that they want China 0:11:54.760 --> 0:11:58.760 to play a dominant role in global supply chains, as 0:11:58.760 --> 0:12:00.439 they already do, but they want to they want to 0:12:00.440 --> 0:12:03.240 strengthen that at the high end, and they want to 0:12:03.440 --> 0:12:07.360 dominate advanced technology. So, first of all, that grand goal 0:12:07.400 --> 0:12:10.800 that we see out of Beijing, unfortunately, is in direct 0:12:11.559 --> 0:12:14.959 conflict with what we would like to see in the US. 0:12:15.360 --> 0:12:18.000 So I guess I just say at the outset, you know, 0:12:18.040 --> 0:12:20.680 we may get some agreements. I think we will out 0:12:20.679 --> 0:12:25.440 of London, but I'm really skeptical, skeptical that they're going to. 0:12:25.880 --> 0:12:29.960 Last long term. For that reason, there's a real there's a. 0:12:29.880 --> 0:12:33.800 Real difference of opinions, if you will, about who's going 0:12:33.840 --> 0:12:36.880 to going to lead in advance deck and supply chains globally. 0:12:38.080 --> 0:12:40.679 Tiff, this is almost an impossible question for any single 0:12:40.720 --> 0:12:42.600 person to answer, but I think you can probably give 0:12:42.640 --> 0:12:45.240 as good of a view into this as anybody else. 0:12:45.280 --> 0:12:46.640 For the last few months, Carol and I've been trying 0:12:46.640 --> 0:12:48.840 to figure out what exactly is happening on the ground 0:12:49.040 --> 0:12:51.319 when it comes to the Chinese economy, to what extent 0:12:51.960 --> 0:12:54.960 is the Chinese economy ahead of the US when it 0:12:54.960 --> 0:12:57.800 comes to electric vehicles, when it comes to robotics, when 0:12:57.800 --> 0:13:00.559 it comes to AI. Because of a past few years, 0:13:00.600 --> 0:13:03.439 what we've learned is that there's yes been a property crisis, 0:13:03.440 --> 0:13:07.000 the consumer is under pressure, there's a debt crisis certainly 0:13:07.120 --> 0:13:10.400 as well. We've reported on extensively. So how would you 0:13:10.480 --> 0:13:14.400 characterize the Chinese consumer, the Chinese economy and where the 0:13:14.400 --> 0:13:16.240 strengths and weaknesses are right now. 0:13:17.280 --> 0:13:20.080 Well, there's a real you've just hit hit upon it, Tim, 0:13:20.080 --> 0:13:24.640 there's this real dichotomy. We have seen tremendous success in 0:13:24.760 --> 0:13:28.480 areas like electric vehicles. There's no question now that they 0:13:28.520 --> 0:13:31.880 are doing far better than we are and leading the 0:13:31.880 --> 0:13:35.680 world in terms of affordable and very good electric vehicles. 0:13:35.720 --> 0:13:36.840 And I saw that last. 0:13:36.679 --> 0:13:38.760 Year when I wrote it in some as well when 0:13:38.800 --> 0:13:43.040 I was in China, we saw, you know, obviously areas 0:13:43.040 --> 0:13:46.360 like smartphones. Apple fell out of the top five brands 0:13:46.640 --> 0:13:51.040 in the China market, so there's huge success there. Robotics again, 0:13:51.960 --> 0:13:55.880 very very impressive obviously with AI we saw with the 0:13:56.840 --> 0:13:59.560 spot Nick moment as people referred to it with deep 0:13:59.640 --> 0:14:06.439 sea and absolutely impressive large language LLM. So that's the 0:14:06.480 --> 0:14:10.599 one side. On the other side, you mentioned you have 0:14:11.040 --> 0:14:16.160 a very weak consumer market, you have an overhang from 0:14:17.000 --> 0:14:19.800 continuing from the real estate market which has been so 0:14:19.920 --> 0:14:22.800 important to the economy, and then also the pandemic they've 0:14:22.880 --> 0:14:25.840 really never recovered from it. So we saw both those 0:14:25.920 --> 0:14:29.440 cited by the OECD earlier this week when they downgraded 0:14:29.480 --> 0:14:32.720 their forecast for Chinese growth I think to four point 0:14:32.800 --> 0:14:36.880 six percent for next year. It's not clear what china 0:14:36.960 --> 0:14:41.200 strategy is at this point to actually reverse that and 0:14:41.480 --> 0:14:44.120 bring confidence back not just the household but also to 0:14:44.520 --> 0:14:45.640 the private sector as well. 0:14:47.080 --> 0:14:50.040 You know, Tip, what I find really interesting is basically 0:14:50.120 --> 0:14:55.440 you've got the two largest economies in the world wanting 0:14:55.520 --> 0:14:59.960 to stay or be number one, right And what's interesting 0:15:00.320 --> 0:15:02.480 is I feel like the US is kind of trying 0:15:02.480 --> 0:15:05.640 to put limitations on the China or telling European allies 0:15:05.640 --> 0:15:08.640 which you can or can't sell to China, And you know, 0:15:08.760 --> 0:15:11.120 it's like and yet we don't want China to put 0:15:11.120 --> 0:15:13.440 any restrictions on us. So I'm curious to see how 0:15:13.480 --> 0:15:14.960 this plays out. And I think a big part of 0:15:15.000 --> 0:15:18.600 it will be where allies fall. And so what kind 0:15:18.600 --> 0:15:21.000 of carving up of the world will we see And 0:15:21.120 --> 0:15:24.800 who do you expect will lie themselves with China? Who 0:15:24.960 --> 0:15:27.480 with the United States? And does Donald Trump make it. 0:15:29.040 --> 0:15:29.920 Better or worse for. 0:15:29.960 --> 0:15:32.280 The US developing the alliances that it really needs. 0:15:33.920 --> 0:15:37.000 Well, wonderful and very important question, Carol. 0:15:37.080 --> 0:15:41.680 If you'd asked me six months ago, before January twentieth, 0:15:42.000 --> 0:15:44.600 I think we could see some real We could see 0:15:44.640 --> 0:15:48.760 some pretty solid allies in Europe, among some of our 0:15:48.960 --> 0:15:53.480 real close partners in Asia, Japan, South Korea, Australia. 0:15:54.280 --> 0:15:59.800 Since January twentieth, since the big view the tariffs, the. 0:16:01.640 --> 0:16:04.800 Beautiful tariffs that have been you know, imposed and threatened 0:16:05.040 --> 0:16:08.080 over fifty times, by the way, over fifty different tariffs 0:16:08.120 --> 0:16:11.840 and adjustments to tariff policy coming out of Washington, there's 0:16:12.200 --> 0:16:14.840 I think I think our alliances are feeling I'm afraid 0:16:15.000 --> 0:16:17.800 a little bit. Our allies and our alliances are a 0:16:17.880 --> 0:16:21.080 bit fraid. So, you know, the other thing I just 0:16:21.160 --> 0:16:23.720 want to mention, China hasn't been sitting still at all. 0:16:24.120 --> 0:16:26.720 They are very aware. The US has been aware as. 0:16:26.640 --> 0:16:31.600 Well about this almost existential tech and supply chain rivalry 0:16:31.680 --> 0:16:35.240 between the two countries. They've spent the recent years really 0:16:35.680 --> 0:16:40.040 sort of redirecting the countries their investment focus. So we see, 0:16:40.160 --> 0:16:44.120 for example, you know, just take you know, a basic 0:16:44.200 --> 0:16:48.560 agricultural product. We've seen how they made tremendous strides in 0:16:48.720 --> 0:16:53.200 lessening their reliance on American soybeans and instead by the 0:16:53.320 --> 0:16:54.480 majority now from Brazil. 0:16:54.760 --> 0:16:56.160 We've seen that across the board. 0:16:56.760 --> 0:16:59.520 So there's been a real growth, there's been a real 0:16:59.560 --> 0:17:04.680 growth in in exports, Chinese exports and investment into what 0:17:04.760 --> 0:17:08.600 we call the Global South, and and a lessening of 0:17:08.960 --> 0:17:12.760 the reduction of the relationship between the US and to 0:17:13.160 --> 0:17:15.119 a lesser degree with the EU, although the EU is 0:17:15.240 --> 0:17:17.879 very much in play now. I think China sees that 0:17:17.960 --> 0:17:20.959 as a real potential ally so that they can scoop up. 0:17:21.560 --> 0:17:24.040 All right, So if I can can just follow just 0:17:24.119 --> 0:17:27.639 real quickly, tips, so then do you see China lying 0:17:27.760 --> 0:17:30.000 with a bunch of European nations and. 0:17:30.280 --> 0:17:33.720 Who ultimately is the US allies at Russia? Like, just 0:17:34.080 --> 0:17:35.440 carve it up for me if you would. 0:17:37.640 --> 0:17:40.760 Well, I certainly hope that's not what happens. I don't 0:17:40.800 --> 0:17:43.600 think we should be with Russia. And Russia, of course, 0:17:43.680 --> 0:17:46.440 is a pretty insignificant I mean it's it's not insignificant, 0:17:46.480 --> 0:17:49.080 but economically and in terms of trades trade, it's a 0:17:49.119 --> 0:17:55.000 relatively small player, unlike the EU obviously. So you know, 0:17:55.160 --> 0:17:59.360 I'm hopeful that we've seen some new pragmaticism, if you will. 0:18:00.200 --> 0:18:03.399 I hope coming out of Washington there's been a willingness 0:18:03.520 --> 0:18:07.760 to try to uh renegotiate some of these initial cair 0:18:07.800 --> 0:18:10.200 of threats that were imposed by Washington. 0:18:10.520 --> 0:18:13.040 So I would hope we'll see, you know, come first 0:18:13.040 --> 0:18:13.560 of all out. 0:18:13.480 --> 0:18:15.159 Of London again, although I'm not sure how long that 0:18:15.240 --> 0:18:18.520 can stick. But some progress in uh In, uh In 0:18:18.760 --> 0:18:20.920 in in cooling tensions and then and then moving on 0:18:21.080 --> 0:18:23.320 to some of our other partners. Obviously there's been the 0:18:23.400 --> 0:18:28.280 talks with India as well. So I guess I'm not 0:18:28.359 --> 0:18:31.240 giving you a great straight answer, Carol, but so much, 0:18:31.600 --> 0:18:33.399 so much is changing so fast. 0:18:34.320 --> 0:18:37.639 Yeah, I do think just finished with one thought on that. 0:18:37.840 --> 0:18:40.760 I do think that Trump has made it clear when 0:18:40.760 --> 0:18:43.000 we know this, of course, that he wants he wants. 0:18:43.040 --> 0:18:45.639 He's perceives himself as a deal maker. He wants to 0:18:45.760 --> 0:18:50.040 cut deals and he, if necessary, will reduce those tariffs 0:18:50.280 --> 0:18:52.959 and try to create a better relationship with countries, starting 0:18:53.000 --> 0:18:54.159 out right now in London with. 0:18:54.240 --> 0:18:58.280 China, tiff uh We've talked a lot about this with 0:18:58.560 --> 0:19:00.520 with other people. We haven't heard your take on it, 0:19:00.760 --> 0:19:03.040 but we know the president and he's been public about this. 0:19:03.200 --> 0:19:06.919 He said he doesn't care if iPhones are made in India. 0:19:07.800 --> 0:19:09.640 He wants them to be made here in the US. 0:19:09.720 --> 0:19:11.439 He doesn't want them in China. He doesn't want them 0:19:11.440 --> 0:19:13.560 to be made in India, as Apple has diversified its 0:19:13.560 --> 0:19:16.680 supply chain. Given what you know about iPhone production, do 0:19:16.760 --> 0:19:20.480 you believe it's realistic for us to think that Apple 0:19:20.600 --> 0:19:24.320 could actually build iPhones in the US, you. 0:19:24.359 --> 0:19:26.560 Know, if we want to spend you know, five thousand 0:19:26.560 --> 0:19:27.720 dollars per iPhone. 0:19:27.800 --> 0:19:28.800 No, No, I don't think so. 0:19:29.480 --> 0:19:31.840 I think that's I mean, if he were able to 0:19:31.920 --> 0:19:34.359 convince iPhone to do that, it's going to hurt all 0:19:34.400 --> 0:19:36.240 of us. It's certainly going to hurt us the consumers 0:19:36.320 --> 0:19:39.240 in much higher prices. There's no reason for Apple to 0:19:39.320 --> 0:19:41.520 do that. And even as Apple is falling out of 0:19:41.560 --> 0:19:45.040 the top five places in the China market, China is 0:19:45.080 --> 0:19:49.200 an important market for Apple. India is an important market 0:19:49.280 --> 0:19:52.600 going forward, So there's no reason for Apple to do that. 0:19:53.320 --> 0:19:55.800 Electric vehicles, That's an interesting. 0:19:57.840 --> 0:20:00.600 Tidbit that Trump threw up on the election trail. 0:20:00.600 --> 0:20:03.760 I think in Iowa where he talked about welcoming Chinese 0:20:04.160 --> 0:20:06.000 electric vehicle makers into the US. 0:20:06.320 --> 0:20:08.760 That makes sense. It would be a big I think 0:20:08.800 --> 0:20:10.440 that's what you think that could happen like that? 0:20:10.680 --> 0:20:12.560 You think we could see that, You think we could 0:20:12.560 --> 0:20:13.680 see that in the next couple of years. 0:20:15.160 --> 0:20:18.840 I definitely a possibility. Trump is indicated he would I 0:20:18.920 --> 0:20:19.320 mean that. 0:20:20.240 --> 0:20:22.520 That would destroy US automakers. 0:20:22.640 --> 0:20:31.119 No, if maybe maybe maybe take a leaf from the 0:20:31.200 --> 0:20:34.280 old China model and say we get fifty percent or 0:20:34.320 --> 0:20:36.680 fifty one percent of a joint venture and you have 0:20:36.800 --> 0:20:38.720 to work with our companies. 0:20:39.240 --> 0:20:39.400 Uh. 0:20:39.840 --> 0:20:42.920 This is you know, sounds a little crazy, but that's 0:20:42.960 --> 0:20:45.160 what China did and it worked very well for them. 0:20:45.440 --> 0:20:48.800 Maybe the US could try something like that, and Trump again, 0:20:48.920 --> 0:20:49.879 he is indicated that. 0:20:49.920 --> 0:20:50.840 He might be open to that. 0:20:51.280 --> 0:20:54.639 The idea that you would have, you know, big Chinese 0:20:54.720 --> 0:20:57.800 factories in the US and creating American jobs. 0:20:57.920 --> 0:20:59.840 Certainly that's what Europe is doing right now. 0:21:01.000 --> 0:21:02.080 All right, we got to leave it there. 0:21:02.080 --> 0:21:03.360 Hey, Tiff, thank you so much. 0:21:03.440 --> 0:21:06.000 Good to get some thoughts from you on this situation. 0:21:06.080 --> 0:21:08.440 Of course, we're going to continue to monitor those talks 0:21:08.520 --> 0:21:11.080 over in London between US and Chinese officials, which, as 0:21:11.160 --> 0:21:13.640