WEBVTT - Bloomberg Businessweek Weekend - May 16th, 2025 0:00:02.800 --> 0:00:10.520 Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg business 0:00:10.560 --> 0:00:14.440 Week Daily reporting from the magazine that helps global leaders 0:00:14.440 --> 0:00:18.400 stay ahead with insight on the people, companies, and trends 0:00:18.400 --> 0:00:23.400 shaping today's complex economy. Plus global business, finance and tech 0:00:23.480 --> 0:00:27.360 news as it happens. The Bloomberg Business Week Daily Podcast 0:00:27.680 --> 0:00:31.760 with Carol Masser and Tim Stenebeck on Bloomberg Radio. 0:00:32.280 --> 0:00:35.560 Hi, everyone, Welcome to the Bloomberg Business Week Weekend Podcast. 0:00:36.040 --> 0:00:39.440 Carol is on assignment today. This past week, some good 0:00:39.440 --> 0:00:42.199 news for equities as the US and China reached a 0:00:42.280 --> 0:00:45.880 temporary truce in their trade war. Also, new inflation data 0:00:45.960 --> 0:00:49.600 indicated a more limited impact of tariffs, at least for now. 0:00:50.120 --> 0:00:52.319 In fact, we saw the stock market wipe out its 0:00:52.360 --> 0:00:55.840 losses for the year midweek. It also prompted US President 0:00:55.840 --> 0:00:59.400 Donald Trump to again pressure Federal Reserve charge your own 0:00:59.400 --> 0:01:03.560 power to lower interest rates. Yet cautious optimism lingers. We're 0:01:03.560 --> 0:01:06.280 going to dig into that a little bit later. Plus 0:01:06.360 --> 0:01:10.200 the President's first official overseas visit and to the Middle East. 0:01:10.680 --> 0:01:14.320 On the agenda, a trillion dollars in deals, AI dreams, 0:01:14.319 --> 0:01:18.400 and one very shiny private jumbo jet. We break down 0:01:18.440 --> 0:01:22.319 the Trump administration's relationships with Middle East allies and where 0:01:22.360 --> 0:01:26.200 Israel stands, plus China's export restrictions of rare earths are 0:01:26.200 --> 0:01:29.680 in focus. We speak with the CEO of USA Rare 0:01:29.720 --> 0:01:34.560 Earth on bringing manufacturing of these strategic mineral Stateside all 0:01:34.560 --> 0:01:36.720 that to come, We begin, though, with a pulse check 0:01:36.760 --> 0:01:39.840 on the US consumer US inflation rose by less than 0:01:39.880 --> 0:01:43.120 forecast in April that led economists to fear that the 0:01:43.160 --> 0:01:46.480 real effect of tariffs lie in the months ahead. Retail 0:01:46.520 --> 0:01:50.800 sales decelerated notably in April, reflecting a consumer pullback on 0:01:50.840 --> 0:01:54.960 imported goods amid concerns about rising prices from tariffs. Walmart 0:01:55.000 --> 0:01:57.800 delivered another quarter of solid sales and earnings growth, but 0:01:57.960 --> 0:02:01.600 caution that tariffs and increasing can turbulence means that even 0:02:01.600 --> 0:02:05.320 the world's largest retailer expects to raise prices. For the 0:02:05.400 --> 0:02:07.840 latest economic news, head on over to Bloomberg dot com 0:02:07.960 --> 0:02:10.240 or check it out on the Bloomberg terminal. And that's 0:02:10.320 --> 0:02:12.760 exactly where we want to go right now. Let's bring 0:02:12.760 --> 0:02:15.600 in Dana Telsey. She's found her CEO and Chief Research 0:02:15.600 --> 0:02:19.200 Officer of Telsey Advisory Group for Specialty all Things Retail. 0:02:19.600 --> 0:02:21.440 Dana I want to start with Walmart, even though this 0:02:21.560 --> 0:02:24.120 is not a company that you particularly follow. One of 0:02:24.120 --> 0:02:29.200 your colleagues does that. But the company did say that 0:02:29.480 --> 0:02:32.720 it is going to pass al on costs to consumers, 0:02:33.080 --> 0:02:36.520 not yet but soon. We saw shares fall. How do 0:02:36.560 --> 0:02:38.240 you take the results that we got from the company 0:02:38.320 --> 0:02:41.200 in the context of what we know about tariffs and 0:02:41.360 --> 0:02:44.079 also the way that you've been talking about potentially empty 0:02:44.120 --> 0:02:45.480 shelves in the next couple of weeks. 0:02:45.720 --> 0:02:47.760 A couple things, and thank you very much for having me. 0:02:48.440 --> 0:02:50.680 First of all, if a company like Walmart, with the 0:02:50.760 --> 0:02:54.320 skies and scale of Walmart is going to raise prices 0:02:54.360 --> 0:02:57.840 because of the external environment out there, what does it 0:02:57.919 --> 0:03:00.720 say for all the others? So every one, given the 0:03:00.760 --> 0:03:03.800 headwinds of carries and costs that are out there, price 0:03:03.840 --> 0:03:07.160 increases are coming. However, it may be selective. It's not 0:03:07.200 --> 0:03:10.399 going to be across the board. It'll be called surgical, 0:03:10.440 --> 0:03:13.240 whatever word you want to use, it'll be surgical in 0:03:13.240 --> 0:03:15.040 what it is. But I've even heard we have this 0:03:15.120 --> 0:03:18.360 price tracker where we've been tracking eighty items and it 0:03:18.360 --> 0:03:21.520 comes out every Tuesday, same eighty items, and we have 0:03:21.680 --> 0:03:24.560 seen of the eighty items we track around twenty percent 0:03:24.600 --> 0:03:26.720 of them have a price have had a price increase 0:03:27.120 --> 0:03:30.000 each week, and it changes. Sometimes there may be a promotion, 0:03:30.160 --> 0:03:33.239 sometimes there's an event. But just on a tracker basis, 0:03:33.639 --> 0:03:37.320 price increases are coming. There's a reason why, in my mind, 0:03:37.440 --> 0:03:40.920 there has been some pull forward to sales the tracker. 0:03:41.040 --> 0:03:44.320 This is fascinating to me that you have this tracker. 0:03:43.360 --> 0:03:46.080 Is is there a rhyme or reason too the types 0:03:46.120 --> 0:03:49.480 of products that are being that are increasing in. 0:03:49.520 --> 0:03:52.680 Price, Well, we track the same items every week, and 0:03:52.720 --> 0:03:55.200 it could their legacy items, whether it's a pair of 0:03:55.320 --> 0:03:58.440 Levi's or it's a Barbie doll, whatever it may be. 0:03:59.120 --> 0:04:02.160 There isn't a rhyme reason. But what's happening is that 0:04:02.200 --> 0:04:04.840 we expect when we heard about these tariffs, we need 0:04:04.880 --> 0:04:07.200 a way to be able to track it. And so 0:04:07.320 --> 0:04:10.960 this way, look what Walmart just said, prices increases are coming. 0:04:11.480 --> 0:04:14.120 Let's see what this tracker shows in the next four 0:04:14.120 --> 0:04:15.320 weeks in terms of pricing. 0:04:15.800 --> 0:04:18.200 So it's very interesting, you know the difference that we're 0:04:18.240 --> 0:04:21.120 seeing in the soft data and the hard data that 0:04:21.200 --> 0:04:25.760 consumers are saying that they're really pessimistic, but we're not 0:04:25.880 --> 0:04:30.279 necessarily seeing that yet in hard data. Or earnings reports. 0:04:30.560 --> 0:04:33.000 Are you do you agree with that thesis or are 0:04:33.000 --> 0:04:35.360 you seeing pockets in some of these earnings reports that 0:04:35.480 --> 0:04:37.000 consumers are feeling the pain. 0:04:36.960 --> 0:04:39.000 A little bit of each. When you think about where 0:04:39.040 --> 0:04:41.880 there's been a slow down, luxury brands has been a 0:04:41.880 --> 0:04:43.920 slow down. You take a look at the high end. 0:04:44.040 --> 0:04:47.640 LVMH reported a negative three percent same store sales decline. 0:04:47.839 --> 0:04:51.640 That's typically weaker for an LVMH. You're seeing other companies 0:04:51.680 --> 0:04:55.680 that are brand leaders at not the luxury price points, 0:04:55.680 --> 0:04:58.920 but where there's brand leaders, where there's innovation. Look at 0:04:58.920 --> 0:05:01.680 the results that came out of Birkenstock. You had a 0:05:01.880 --> 0:05:05.200 high teen sales increase, you increase the guidance for the 0:05:05.279 --> 0:05:07.680 year on sales the high end of the previous range 0:05:07.880 --> 0:05:10.880 seventeen percent plus, and you increase your ajusity. But da, 0:05:11.400 --> 0:05:13.840 what do they have? They have newness and innovation At 0:05:13.839 --> 0:05:16.719 the same time I met with Tapestry on Tuesday, I 0:05:16.720 --> 0:05:21.960 met with Levi's yesterday. Tapestry in Levi's and Birkenstock heritage 0:05:21.960 --> 0:05:26.120 companies with authenticity that are reinventing their product. You know 0:05:26.120 --> 0:05:29.359 what they're doing. They're capturing a younger consumer. And companies 0:05:29.440 --> 0:05:32.680 like Coach, which is owned by Tapestry, a fifteen percent 0:05:32.720 --> 0:05:36.440 increase in averaging retail selling price. Why it's new and different? 0:05:36.600 --> 0:05:38.360 Emile A and I are smiling right now because on 0:05:38.400 --> 0:05:40.200 our editorial called Ning, I said, we have to ask 0:05:40.279 --> 0:05:43.280 Dan about Birkenstock shares are up what six percent? You 0:05:43.320 --> 0:05:45.800 were on surveillance with Tom Keen and me last week. 0:05:45.920 --> 0:05:48.120 We asked you to name one company to watch. You 0:05:48.160 --> 0:05:50.120 said it was Birkenstock. You called this, why are you 0:05:50.120 --> 0:05:51.120 bullish on Birkenstock? 0:05:51.480 --> 0:05:55.000 Because their footwear overall has wide appeal. You have the 0:05:55.040 --> 0:05:58.160 flywheel of younger customers that are being attracted to the brand. 0:05:58.480 --> 0:06:02.600 It's not just open toe share sandals, it's closed toed shoes. Also, 0:06:03.000 --> 0:06:05.800 you look at the expansion opportunities they have with their 0:06:05.800 --> 0:06:08.440 own stores. They only have around ten stores in the US. 0:06:08.640 --> 0:06:11.000 They have wholesale accounts who have stores, but of their own. 0:06:11.320 --> 0:06:14.400 You take a look at Asia, which is a rising 0:06:14.480 --> 0:06:16.960 market for them. You look at the fact that they 0:06:17.000 --> 0:06:19.560 bring in goods they're made in Europe. They yes, they 0:06:19.560 --> 0:06:23.160 have terif exposure, but not the as significant teriff exposure. 0:06:23.560 --> 0:06:26.279 And look at their adjustinity. Bitdam Margins, I mean you're 0:06:26.480 --> 0:06:29.080 in excess to thirty one percent. I don't have many 0:06:29.120 --> 0:06:32.960 companies that are generating mid to high teen sales increases 0:06:33.120 --> 0:06:37.520 with increasing EBITDA margins in an environment where there's uncertainty. 0:06:37.720 --> 0:06:40.120 But you're seeing a little bit in footwear. You look 0:06:40.120 --> 0:06:43.240 at some of the other brands, Socony thirty percent increase 0:06:43.279 --> 0:06:46.400 in sales by Wolverine worldwide, Merrill up in excess to 0:06:46.480 --> 0:06:49.480 thirteen percent. So newness drives demand. 0:06:49.760 --> 0:06:52.480 Yeah, Maryls are having a comeback. I've seen a couple 0:06:52.600 --> 0:06:54.720 Maryls on the streets of New York City and that. 0:06:54.720 --> 0:06:56.400 Was like a shoe that I want, I like to hear. 0:06:56.400 --> 0:06:58.680 When I was like a child's But they're coming back, 0:06:58.760 --> 0:06:59.000 you know. 0:06:59.200 --> 0:06:59.359 You know. 0:06:59.360 --> 0:07:01.400 I was looking at at the S and P five 0:07:01.480 --> 0:07:05.120 hundred sectors, the group levels. What was the top performing 0:07:05.200 --> 0:07:06.120 this year so far? 0:07:06.240 --> 0:07:06.839 What's the worst? 0:07:07.000 --> 0:07:10.360 Consumer? Staples is one of the best performing groups. Consumer 0:07:10.440 --> 0:07:15.280 discretionary is one of the worst. How are investors supposed 0:07:15.280 --> 0:07:18.360 to invest in the consumer space at large? How should 0:07:18.360 --> 0:07:20.280 they be thinking about kind of the direction of travel 0:07:20.520 --> 0:07:21.160 when you use. 0:07:22.040 --> 0:07:25.360 When you think about exactly the difference with staples and discretionary, 0:07:25.640 --> 0:07:28.679 staples as essentials, it's what you need, not what you want. 0:07:29.040 --> 0:07:31.200 And when you think about this environment where we don't 0:07:31.240 --> 0:07:33.240 know what the price increases is going to be, we've 0:07:33.280 --> 0:07:36.720 all seen the backward looking data of consumer confidence and 0:07:36.800 --> 0:07:41.000 so they're being careful. And so with staples, that's careful. 0:07:41.360 --> 0:07:45.000 With discretionary, it feels you have spending power. There's always 0:07:45.040 --> 0:07:48.120 the old adage that goes when the stock market goes up, 0:07:48.440 --> 0:07:51.520 people feel great and spending can happen when the stock 0:07:51.600 --> 0:07:54.720 marketing comes down, you know, mind the hatchets, you know, 0:07:55.120 --> 0:07:57.560 be careful. And so look what we've had over the 0:07:57.600 --> 0:08:00.720 past two months. That's what you've had. Companies in the 0:08:00.720 --> 0:08:04.280 consumer area are reporting first quarter earnings. Now when you 0:08:04.320 --> 0:08:07.280 look at Walmart and what's to come, if they're saying 0:08:07.320 --> 0:08:09.720 prices are going up, that's going to be the mantra 0:08:09.800 --> 0:08:10.400 going forward. 0:08:10.520 --> 0:08:12.000 We got to get you to weigh in on Dick's 0:08:12.040 --> 0:08:14.720 buying foot Locker. What does it say to you? I mean, 0:08:14.720 --> 0:08:16.160 this is the end of an era for foot Locker. 0:08:16.160 --> 0:08:17.880 This is a company that's been a public company since 0:08:17.960 --> 0:08:20.400 nineteen eighty What does this M and A mean to you? 0:08:20.760 --> 0:08:23.520 So overall on the M and A, where's the scale 0:08:23.520 --> 0:08:27.160 and where's the synergies Footlocker on its own is taking 0:08:27.200 --> 0:08:31.080 a long time to undergo this transformation, even under a 0:08:31.160 --> 0:08:35.520 well recognized, well respected CEO, Mary Dillon. She came from 0:08:35.559 --> 0:08:39.320 Alta Right, did great things at Alta ed Stack Basically, 0:08:39.400 --> 0:08:43.600 you know legacy legacy Dix his father founded it, Lauren Hobart. 0:08:44.000 --> 0:08:47.600 They basically reinvented what Dix was with Dick's House of Sport. 0:08:47.880 --> 0:08:50.160 You talk to every real estate landlord. What do they 0:08:50.160 --> 0:08:51.560 all want Dick's House of Sport? 0:08:51.920 --> 0:08:52.199 Why? 0:08:52.240 --> 0:08:56.439 Because it brings traffic. What's the difference between Dix and Footlocker. 0:08:56.920 --> 0:09:00.200 The customer base of Footlocker the eighteen to twenty five 0:09:00.280 --> 0:09:03.600 year old guy. The customer base at Dix could be 0:09:03.679 --> 0:09:06.360 more families. What do you get with both of it? 0:09:06.760 --> 0:09:09.600 And granted the stock is down because the certainty of 0:09:09.640 --> 0:09:13.320 the execution at Dix's Dix alone was there, and you 0:09:13.360 --> 0:09:16.360 could basically see the path of growth with House the Sport. 0:09:16.960 --> 0:09:20.680 Putting it together, there's work to be done, transformation to 0:09:20.679 --> 0:09:23.280 be done. With fult Locker gives them more buying power. 0:09:23.600 --> 0:09:26.679 Let's see what Dix does, because what Edstach says is 0:09:26.840 --> 0:09:29.080 he's got the vision. He had the vision before with 0:09:29.120 --> 0:09:30.800 House of sport. Let's see what he can do with 0:09:30.800 --> 0:09:32.000 fullt locker just thirty second. 0:09:32.040 --> 0:09:33.800 Sounds like you're optimistic. This is a good deal. 0:09:34.400 --> 0:09:38.080 I think it's the valuation basically at six, six times 0:09:38.120 --> 0:09:43.440 and seventeen times pe not bad from that spectrum. What 0:09:43.559 --> 0:09:46.240 is it time length? And can you keep the focus 0:09:46.280 --> 0:09:49.160 on Dick's and Dick's house of sport while you're integrating 0:09:49.160 --> 0:09:50.840 foot lockers? The question go forward? 0:09:51.200 --> 0:09:53.600 All right, Dana, appreciate you joining us from talk to retail. 0:09:53.640 --> 0:09:56.000 Not a better voice out there, Dana Telsey, Founder, CEO, 0:09:56.360 --> 0:09:59.679 chief Research Officer of Telsey Advisory Group, joining us here 0:09:59.720 --> 0:10:01.760 in the at Bloomberg at BusinessWeek Studio. 0:10:07.000 --> 0:10:10.840 You're listening to the Bloomberg Business Week Daily Podcast. Catch 0:10:10.920 --> 0:10:13.599 us live weekday afternoons from two to five Easter and 0:10:13.800 --> 0:10:17.720 listen on Applecarplay and Android Auto with the Bloomberg Business app, 0:10:17.920 --> 0:10:19.800 or watch us live on YouTube. 0:10:21.160 --> 0:10:23.280 President Trump this week toward the Middle East in his 0:10:23.360 --> 0:10:27.160 first scheduled overseas trip since taking office. Over four days, 0:10:27.200 --> 0:10:31.040 the President visited Saudi Arabia, the United Arab Emirates, and cutter. 0:10:31.720 --> 0:10:34.520 He was there for one simple reason to do business 0:10:34.559 --> 0:10:38.560 and make deals, and it appears to have worked. Saudi 0:10:38.600 --> 0:10:41.960 Arabia and the UAE unveiled commitments to increase investment with 0:10:42.000 --> 0:10:44.240 the US by as much as two trillion dollars over 0:10:44.280 --> 0:10:47.959 the next decade. In addition, cutter airways placed in order 0:10:48.000 --> 0:10:50.120 to give Boeing the single biggest deal in the US 0:10:50.200 --> 0:10:54.080 planemaker's history, not to mention the four hundred million dollar 0:10:54.200 --> 0:10:57.200 luxury jumbo jet the Qataris reportedly want to give the 0:10:57.240 --> 0:11:00.960 President as a temporary air force one. The strengthening of 0:11:01.000 --> 0:11:03.480 ties with Gulf nations have led some to raise alarm 0:11:03.520 --> 0:11:06.560 bells about the sphere of influence in the region. For 0:11:06.640 --> 0:11:08.960 more on US relations with the Middle East and what 0:11:09.000 --> 0:11:11.200 this means for Israel and China, we caught up with 0:11:11.240 --> 0:11:15.560 Greg Roman, executive director of the independent nonprofit Middle East Forum. 0:11:15.840 --> 0:11:15.960 Well. 0:11:16.000 --> 0:11:18.000 I think that what President Trump is looking for his 0:11:18.120 --> 0:11:21.840 partnership instead of ownership over the region. He expects that 0:11:21.920 --> 0:11:24.320 there be a quid pro quo between the United States 0:11:24.320 --> 0:11:28.240 and its trade, commercial, economic, and military relationships with Middle 0:11:28.280 --> 0:11:31.600 East allies. But there's also some sublayer here that I 0:11:31.640 --> 0:11:34.400 think the administration needs to be wary of. Where in 0:11:34.520 --> 0:11:37.640 countries like Saudi Arabia and the United Arab Emirates are 0:11:37.679 --> 0:11:41.200 looking to foster closer relations with the US, with our businesses, 0:11:41.240 --> 0:11:44.760 with our markets. There's other countries like Turkey and Katar, 0:11:44.880 --> 0:11:47.800 even though he's not potentially visiting Turkey, unlisters that deal 0:11:48.160 --> 0:11:50.920 with Putin and Zelensky on Thursday that are looking to 0:11:51.000 --> 0:11:54.199 influence the United States to outstretch their interests to the 0:11:54.280 --> 0:11:57.960 US's disadvantage. So there's two positive visits here and another 0:11:58.000 --> 0:11:59.480 one that I would be very aware of when he 0:11:59.520 --> 0:12:00.880 goes to do greg. 0:12:00.679 --> 0:12:02.720 The President saying, you know, now, there are our friends 0:12:02.720 --> 0:12:07.160 and our allies talking about Saudi Arabia, and I'm just curious, 0:12:07.200 --> 0:12:09.360 what does being friends and allies really look like going 0:12:09.360 --> 0:12:12.000 forward between the two and where does that kind of 0:12:12.080 --> 0:12:14.199 leave the US and its historical allies. 0:12:14.760 --> 0:12:16.520 Well, I think that Saudi Arabia and the United States 0:12:16.559 --> 0:12:19.280 have been historical allies since the meeting at y alt. 0:12:20.160 --> 0:12:22.520 I guess every relationship's complicated, but it feels like this 0:12:22.559 --> 0:12:23.959 one's been a little bit more complicated. 0:12:24.200 --> 0:12:26.560 Well, okay, let's go to nine to eleven for a second. 0:12:26.640 --> 0:12:29.760 Exactly after eleven, and you had fourteen years of animus 0:12:29.800 --> 0:12:32.440 between the United States and Saudi kings and princes because 0:12:32.440 --> 0:12:34.520 of their failure to own up to what was the 0:12:34.520 --> 0:12:38.280 result in relationship of having cover fur the bin Laden family. 0:12:38.480 --> 0:12:42.360 But Mohammed bin Salman becomes Crown Prince in twenty fifteen, 0:12:42.679 --> 0:12:46.000 he quickly starts to reform the kingdom, starts opening up 0:12:46.000 --> 0:12:48.400 its markets, asking for more investment in the United States, 0:12:48.400 --> 0:12:50.480 even goes so far as to invest money and the 0:12:50.640 --> 0:12:53.959 Israeli let Hedge Fund. For the last decade, MBS has 0:12:54.000 --> 0:12:57.240 been at the forefront of trying to crystallize and close 0:12:57.320 --> 0:13:00.400 in relations between the United States and Saudi Arabia. UAE 0:13:00.559 --> 0:13:02.680 going back to the early nineties, has been in a 0:13:02.679 --> 0:13:05.400 close defense relationship with the United States since the Gulf War. 0:13:05.720 --> 0:13:08.280 But the third country that I mentioned, the Guitaris, that's 0:13:08.360 --> 0:13:10.319 one that I'm still wary of, considering the fact that 0:13:10.360 --> 0:13:14.679 they have huge influence operations and even espionage against members 0:13:14.720 --> 0:13:16.640 of the United States and also people who are even 0:13:16.679 --> 0:13:17.680 close to Trump's family. 0:13:17.920 --> 0:13:20.720 Okay, so let's go there and give us exactly what 0:13:20.760 --> 0:13:23.920 you're concerned about, especially in the context of a potential 0:13:23.960 --> 0:13:26.800 gift of a presidential jet. 0:13:27.200 --> 0:13:29.160 Well, I think this goes beyond the presidential jet. 0:13:29.160 --> 0:13:31.920 I understand why the Defense Department would try to have 0:13:31.960 --> 0:13:35.199 an interim solution for the lack of Boeing being able 0:13:35.280 --> 0:13:37.520 to deliver on Air Force one, which is now expected 0:13:37.559 --> 0:13:40.400 by twenty twenty nine. But I think security considerations will 0:13:40.400 --> 0:13:42.480 put that aside and the Secret Service won't sign off 0:13:42.480 --> 0:13:44.920 on that, even though I understand the token gesture. The 0:13:45.080 --> 0:13:47.920 larger issue is the forty six to forty seven billion 0:13:47.960 --> 0:13:51.600 dollars that Guitaris have invested in American higher education k 0:13:51.720 --> 0:13:56.200 through twelve businesses or university systems, political lobbying to the 0:13:56.240 --> 0:13:58.400 tent of almost seventy eight million dollars over the past 0:13:58.400 --> 0:14:01.720 few years, all but the of trying to buy both 0:14:01.760 --> 0:14:04.120 sides of the political aisle. And I don't think this 0:14:04.160 --> 0:14:06.240 is anything that really extends to the administration. But what 0:14:06.280 --> 0:14:08.320 the Qutaris have done is try to create a white 0:14:08.320 --> 0:14:11.360 picket fence around their ears of influence on Republicans and 0:14:11.400 --> 0:14:14.800 Democrats that whichever way American politics go, the Kutaris will 0:14:14.800 --> 0:14:15.440 be there to win. 0:14:15.800 --> 0:14:18.680 So why, I don't know, Maybe this sounds naive. I mean, 0:14:18.960 --> 0:14:22.240 what is it that we need to be wary most 0:14:22.560 --> 0:14:26.640 when it comes to extending our relationship throughout the Middle East? 0:14:26.800 --> 0:14:29.760 I mean, we have relationships, right with other countries, with 0:14:29.800 --> 0:14:33.200 other regions, there are investments that we encourage. We have 0:14:33.240 --> 0:14:36.800 a White House and president who is big time encouraging 0:14:36.880 --> 0:14:41.240 investments by everyone outside the United States into the United States. 0:14:41.280 --> 0:14:44.200 So what is it in particular at this moment in time, 0:14:44.640 --> 0:14:48.160 especially with a nation like Saudi Arabia that is trying 0:14:48.280 --> 0:14:52.920 to move beyond oil right and kind of extend its 0:14:52.960 --> 0:14:56.880 economy in different ways, that does require maybe relationships beyond 0:14:56.920 --> 0:14:59.080 its borders. So I'm just curious what do you think 0:14:59.120 --> 0:15:01.800 Americans need to be worry about in this relationship as 0:15:01.840 --> 0:15:03.080 it seems to be deepening. 0:15:03.920 --> 0:15:07.080 I think with Plan twenty thirty under MBS in Saudi Arabia, 0:15:07.120 --> 0:15:11.040 the diversification of Saudi's economy, it'd being a key member 0:15:11.160 --> 0:15:15.280 of the IMEC, the Israel Sorry India, Middle East Europe 0:15:15.320 --> 0:15:18.000 Economic Corridor is great in terms of being able to 0:15:18.040 --> 0:15:21.200 have American companies invited to bid on infrastructure contracts there 0:15:21.280 --> 0:15:22.520 and to help them diversify it. 0:15:22.520 --> 0:15:24.080 It's a net gain for the US and Saudi. 0:15:24.240 --> 0:15:27.080 Same thing with the amrodis they've placed their bet on AI. 0:15:27.400 --> 0:15:29.200 I think the fact they're willing to invest close to 0:15:29.240 --> 0:15:31.800 a trillion dollars to this with check Tachnaun and his 0:15:31.920 --> 0:15:34.760 leadership through their ministries for infrastructure and development. It's a 0:15:34.840 --> 0:15:36.760 win win for the United States. But the one that 0:15:36.800 --> 0:15:39.360 I'm worried about is where in the UAE and Saudi 0:15:39.400 --> 0:15:43.560 Arabia don't have significant military relations with Iran, don't support Kamas, 0:15:43.600 --> 0:15:47.040 aren't actively supporting Siri and g hottis that Katari trip, 0:15:47.080 --> 0:15:49.480 the one in which you have a country which hosts 0:15:49.480 --> 0:15:52.360 one of the most egregious terror organizations to ever commit 0:15:52.360 --> 0:15:54.480 a tax against Americans, is one that I have to 0:15:54.480 --> 0:15:56.120 be very wary of because I don't see what the 0:15:56.160 --> 0:15:58.480 net gain is for the United States. If anything, it's 0:15:58.480 --> 0:16:01.320 to our citizens detriment to do any business with them. 0:16:01.640 --> 0:16:03.840 We're speaking with Greg Roman, executive director of the Middle 0:16:03.880 --> 0:16:07.040 East Forum. He joins us from Los Angeles. Greg, I 0:16:07.080 --> 0:16:10.160 want to dig into what you've described as an influenced 0:16:10.200 --> 0:16:13.320 campaign of the Katari government, specifically when it comes to 0:16:13.400 --> 0:16:17.360 higher education and indeed K through twelve here in the US. 0:16:17.720 --> 0:16:20.360 What can you tell us about what you've found and 0:16:20.360 --> 0:16:23.480 what you've reported on and really what the goals are 0:16:23.640 --> 0:16:25.200 of the government of the country. 0:16:26.280 --> 0:16:29.600 So if you think about all areas of American educational Excellence, 0:16:29.840 --> 0:16:33.880 Carnegie Mellon in cyber space, Northwestern in Business, Cornell and Medicine, 0:16:33.880 --> 0:16:37.359 Georgetown and Diplomacy, Texas A and M and Science and engineering. 0:16:37.560 --> 0:16:40.040 These are all places where the Katari government has invested 0:16:40.160 --> 0:16:43.040 hundreds of millions, if not billions of dollars in bringing 0:16:43.120 --> 0:16:47.000 those campuses and the intellectual property and the professors to Doha. 0:16:47.480 --> 0:16:49.360 So if you look at the number amount of students 0:16:49.400 --> 0:16:53.480 that study at Texas, A and M Doha, it's Iranian 0:16:53.520 --> 0:16:56.920 students who more than anything constitute the people who are 0:16:56.920 --> 0:17:00.920 there studying nuclear engineering, physics, applied sciences, and they take 0:17:00.960 --> 0:17:03.040 that IP which they wouldn't be able to access because 0:17:03.040 --> 0:17:05.199 the wouldn't get a visa to study in the United States, 0:17:05.480 --> 0:17:07.840 bring it back to Iran and then contribute to their 0:17:07.920 --> 0:17:10.960 nuclear program. Even in k through twelve. Their goal is 0:17:11.000 --> 0:17:13.840 to try to create a generation of Americans who are 0:17:13.920 --> 0:17:17.640 sympathetic to Katari foreign policy goals, so that maybe one 0:17:17.680 --> 0:17:19.840 person from a million who graduate from one of these 0:17:19.920 --> 0:17:23.879 universities ends up becoming president. That Kataris have their talents 0:17:24.200 --> 0:17:26.760 enshrined in them and are able to exert their influence 0:17:26.760 --> 0:17:30.080 on it. And we see this across business. Dozens of companies, 0:17:30.320 --> 0:17:34.320 hedge funds, investment funds, all taking Katari money and then 0:17:34.320 --> 0:17:37.320 when the right time comes, they use that investment and 0:17:37.359 --> 0:17:39.160 they activate it to have their influence. 0:17:39.600 --> 0:17:41.639 So what do you make or what do you believe 0:17:41.680 --> 0:17:43.920 is the significance of this being President Trump's first plan 0:17:43.960 --> 0:17:46.920 trip overseas. And you've also served, as I should point out, 0:17:46.920 --> 0:17:49.600 the political advisor to the Deputy Foreign Minister of Israel. 0:17:49.600 --> 0:17:52.000 You've worked for the Israeli Ministry of Defense. I mean, 0:17:52.000 --> 0:17:54.200 how do you think Israel and the Prime and Prime 0:17:54.200 --> 0:17:56.639 Minister and Yahoo are looking at this trip. 0:17:57.880 --> 0:18:00.000 I think that the US is executing its own entry. 0:18:00.280 --> 0:18:02.840 As much as we elect our president to be able 0:18:02.840 --> 0:18:05.080 to engage in policies that are pro American. The Israeli 0:18:05.080 --> 0:18:07.919 government decides what's best for Israel, and more often than not, 0:18:08.040 --> 0:18:11.760 the policies mesh where there's a strong close relationship between 0:18:11.760 --> 0:18:13.800 the two. But I think at the same time President 0:18:13.840 --> 0:18:16.639 Trump is saying, we have to have an America first policy, 0:18:16.800 --> 0:18:21.320 and that's not at juxtaposition where it's against Israel's interests. 0:18:21.520 --> 0:18:24.440 But the net gain for the United States in terms 0:18:24.480 --> 0:18:27.840 of strengthening its relationship with Arab countries will also be 0:18:27.880 --> 0:18:30.119 a positive gain for Israel. We sow the same exact 0:18:30.160 --> 0:18:32.920 pattern take place in twenty nineteen and then twenty twenty 0:18:32.920 --> 0:18:35.480 with the process that led to the Abrahamic Courts, and frankly, 0:18:35.480 --> 0:18:37.520 if I was Prime Minister net and Yahoo, I'd be 0:18:37.560 --> 0:18:40.199 looking at the dialogue between Mohammed and Salman and President 0:18:40.240 --> 0:18:43.520 Trump and seeing how close I am now today versus 0:18:43.640 --> 0:18:47.960 yesterday of having sauty recognition of Israel and economic relations 0:18:47.960 --> 0:18:49.560 between the two heavyweights in the region. 0:18:50.760 --> 0:18:52.760 I am curious do we look back at this moment 0:18:52.800 --> 0:18:56.480 in time in five years, Greg, and say three years. 0:18:56.680 --> 0:18:58.840 I always think about this, Is this a moment in 0:18:58.880 --> 0:19:03.280 time where we are really strongly changing our geopolitical alliances 0:19:03.480 --> 0:19:07.000 or midterms or new president come three and a half 0:19:07.080 --> 0:19:09.760 years or so, does that change things potentially again? 0:19:10.880 --> 0:19:13.160 I think we're at an inflection point. The abraham Accords 0:19:13.240 --> 0:19:15.680 was put on ice when President Biden came into office 0:19:15.720 --> 0:19:18.680 for other reasons where he was trying to seek deeper 0:19:18.720 --> 0:19:22.800 relations with non Arab Sunni contries with Iran. But now 0:19:22.800 --> 0:19:24.439 we're basically picking up from where we were in September 0:19:24.440 --> 0:19:27.000 and October of twenty twenty. More deals will be signed, 0:19:27.240 --> 0:19:30.240 trade relationships will be deepened, will finally be able to 0:19:30.240 --> 0:19:32.680 have an alternative trade corridor to the Chinese Belt and 0:19:32.760 --> 0:19:35.480 Road policy which has been going through China, Iran, Pakistan, 0:19:35.720 --> 0:19:38.159 Turkey and onto Europe. And this is I think the 0:19:38.200 --> 0:19:41.600 reemergence of America as a viable competitor on the global 0:19:41.600 --> 0:19:44.480 stage with China embracing our Gulf allies. And at the 0:19:44.480 --> 0:19:47.760 same time, it's also building closer connections between regional powers 0:19:47.760 --> 0:19:50.240 that for far too long haven't had the kind of 0:19:50.280 --> 0:19:53.240 relationship that they should have, whether it's trade, commerce, economy, 0:19:53.280 --> 0:19:55.720 or military. And President Trump is the glue that's helping 0:19:55.800 --> 0:19:56.760 cement all this together. 0:19:57.840 --> 0:20:00.560 We have thirty seconds left. The President said he wants 0:20:00.560 --> 0:20:03.480 an Iran deal. He warns it to take the olive branch. 0:20:03.600 --> 0:20:05.359 Just thirty seconds on Iran while we have you. 0:20:06.359 --> 0:20:08.920 The Iranians are going to play President Trump along until 0:20:08.920 --> 0:20:12.240 they don't say that they're willing to dismantle their uranium 0:20:12.240 --> 0:20:14.320