WEBVTT - Facebook's 'Zero' Data Cost Is Threatened By Regulation 0:00:02.640 --> 0:00:05.320 Welcome to the Bloomberg Penl Podcast. I'm Paul swing you 0:00:05.360 --> 0:00:07.680 along with my co host Lisa Brahma Waits. Each day 0:00:07.720 --> 0:00:10.240 we bring you the most noteworthy and useful interviews for 0:00:10.280 --> 0:00:12.520 you and your money, whether at the grocery store or 0:00:12.560 --> 0:00:15.480 the trading floor. Find a Bloomberg Penl podcast on Apple 0:00:15.520 --> 0:00:17.960 podcast or wherever you listen to podcasts, as well as 0:00:17.960 --> 0:00:23.239 at Bloomberg dot com. The busiest week of earnings for 0:00:23.400 --> 0:00:27.720 the second quarter reporting season. Meanwhile, we are getting the 0:00:28.040 --> 0:00:31.720 trickle out of the big tech names. Amazon reporting after 0:00:31.720 --> 0:00:34.080 the bell today, shares lower by three quarters of a 0:00:34.200 --> 0:00:37.519 percent today, although a lot of people are expecting them 0:00:37.600 --> 0:00:40.199 to deliver strong results on the heels of their one 0:00:40.280 --> 0:00:43.519 day shipping initiative. Joining us now to discuss Dave Garritty, 0:00:43.600 --> 0:00:46.040 chief market strategist for laid Law and Company and also 0:00:46.080 --> 0:00:49.880 a partner at bt block. He is joining us here 0:00:50.000 --> 0:00:52.800 in our eleven three oh studios. Dave, I want to 0:00:52.840 --> 0:00:55.560 start with Amazon. What are you expecting in terms of 0:00:55.600 --> 0:00:57.320 their earnings and and sort of the boost that they're 0:00:57.320 --> 0:01:00.200 expected to get from the one day shipping initiative. I 0:01:00.200 --> 0:01:02.040 think Amazon is going to be coming in with fairly 0:01:02.040 --> 0:01:06.399 strong results, probably looking at revenues possible growth somewhere north 0:01:06.440 --> 0:01:09.959 of fiftent year over year. UM. You know, clearly the 0:01:10.040 --> 0:01:12.679 question here for Amazon isn't so much just the strength 0:01:12.680 --> 0:01:15.360 of the volumes through the e commerce platform, but really 0:01:15.400 --> 0:01:18.039 more what's going on with Amazon Web services and the 0:01:18.080 --> 0:01:21.480 fact that they've continue to reap returns from their leading 0:01:21.520 --> 0:01:25.840 return as being a cloud computing platform. So UM prime 0:01:25.920 --> 0:01:28.640 is a wonderful thing. However, at the end of the day, 0:01:28.680 --> 0:01:30.720 the engine for profit growth of the company is what 0:01:30.760 --> 0:01:34.680 they're doing in terms of the ability to control data. So, David, 0:01:35.000 --> 0:01:37.080 on the data front, you're talking before we went on 0:01:37.120 --> 0:01:40.640 the air about Facebook. They had numbers last night, really 0:01:40.680 --> 0:01:43.480 strong top line growth, the stocks down one and a 0:01:43.480 --> 0:01:46.479 half percent. You're calling out some issues about their cost 0:01:46.520 --> 0:01:48.960 of good soul. It gives a sense of what you're thinking, Yeah, 0:01:49.120 --> 0:01:52.360 UM to UM you know it certainly as a monopoly 0:01:52.400 --> 0:01:54.840 if you will, in terms of social media. UM, you know, 0:01:55.080 --> 0:01:58.560 Facebook is realizing these monopoly rents. UM. The thing that's 0:01:58.600 --> 0:02:02.160 been interesting here looking more on the regulatory front towards 0:02:02.200 --> 0:02:04.840 not just the US government and what the Hill is saying, 0:02:04.840 --> 0:02:07.880 but also overseas. UM. You know, clearly the fact of 0:02:07.920 --> 0:02:09.799 the matter is looking at the business model for these 0:02:09.800 --> 0:02:12.760 companies Facebook, Uh, you know they have they pay no 0:02:12.840 --> 0:02:16.320 cost for the data that we provide. And there have 0:02:16.360 --> 0:02:19.200 been estimates out there that this could be giving a 0:02:19.240 --> 0:02:23.840 benefit to the company Facebook and other um monopolies within 0:02:23.960 --> 0:02:27.080 social media or within tech of something in the order 0:02:27.160 --> 0:02:31.360 about seventy five to a hundred billion dollars a year. Uh. 0:02:31.400 --> 0:02:34.440 There are discussions taking place in the U S and 0:02:34.440 --> 0:02:39.120 elsewhere of taxing this. I mean effectively, what would happen 0:02:39.160 --> 0:02:41.680 if say General Motors you know, paid nothing for the 0:02:41.720 --> 0:02:44.239 steel that they used to build their cars. The model 0:02:44.280 --> 0:02:46.400 and the argument here is effectively the same in terms 0:02:46.400 --> 0:02:49.760 of looking at Facebook. So the issue is costs potentially 0:02:50.000 --> 0:02:52.280 are going to be rising as a result of this 0:02:52.440 --> 0:02:56.399 regulatory inquiry and oversight with respect of the industry. UM, 0:02:56.480 --> 0:02:59.919 so margins will come under pressure. Clearly, the revenue moment 0:03:00.040 --> 0:03:03.480 him continues to grow, uh, and that can support many things. 0:03:03.800 --> 0:03:05.600 But the fact of the matter is is that life 0:03:05.639 --> 0:03:08.600 is going to become far more complicated, not just for Facebook, 0:03:08.600 --> 0:03:11.519 but also potentially for Amazon and Google as a result 0:03:11.560 --> 0:03:14.480 of the antitrust inquiry with the Department of Justice and 0:03:14.680 --> 0:03:18.400 the Federal Trade Commission the FTC have launched. Which companies 0:03:18.600 --> 0:03:20.760 of the big tech names do you think will get 0:03:20.919 --> 0:03:25.919 most affected by this the d efforts. My selection here 0:03:25.960 --> 0:03:28.560 would be Facebook. Um. You know, to the extent that 0:03:28.600 --> 0:03:34.640 Facebook does depend upon other companies for data. Um, so 0:03:34.880 --> 0:03:38.640 other companies I think will pass costs onto Facebook. And 0:03:38.720 --> 0:03:41.240 I would simply say that even though Facebook on a 0:03:41.280 --> 0:03:44.000 tactical basis has had a win with respect of this 0:03:44.080 --> 0:03:47.400 five billion dollars settlement with the FTC because it removes 0:03:47.440 --> 0:03:50.240 liability for the officers, the fact of the matter is 0:03:50.240 --> 0:03:53.280 is that Mark Zuckerberg has shown himself to be brazen 0:03:53.760 --> 0:03:57.440 in his dealings with regulatory authorities, both here in the 0:03:57.560 --> 0:04:00.320 US and elsewhere, and I think this puts some rarely 0:04:00.360 --> 0:04:03.240 in the crosshairs and there's a foreseeable future. There's also 0:04:03.280 --> 0:04:05.560 a question of diversification. We were talking about Amazon, and 0:04:05.600 --> 0:04:07.640 I thought it was striking that you said that the AWS, 0:04:07.680 --> 0:04:10.240 the sort of cloud computing services, was really where the 0:04:10.280 --> 0:04:14.120 focus needs to be, because on the actual bread motor 0:04:14.160 --> 0:04:17.360 of their business is sort of market platform, it's sort 0:04:17.360 --> 0:04:20.120 of increasingly utility. They just try to crept margins as 0:04:20.160 --> 0:04:22.400 much as possible, or that's how they'd like to put 0:04:22.440 --> 0:04:25.080 it out there as how crucial is it for big 0:04:25.120 --> 0:04:30.680 tech to basically create their mainstay businesses as utilities, but 0:04:30.760 --> 0:04:34.000 then have these peripheral businesses actually give them their money. 0:04:34.080 --> 0:04:36.000 That's a very good point, and it's you know, and 0:04:36.080 --> 0:04:38.920 in terms of looking at the monopoly that these companies 0:04:38.960 --> 0:04:42.320 have within their various sectors, the argument has been put 0:04:42.360 --> 0:04:46.280 forward that these are really more utilities, and as utilities 0:04:46.320 --> 0:04:49.600 they should be regulated and allowed to have the returns 0:04:49.640 --> 0:04:54.320 that utilities historically have enjoyed, Which means that these companies, 0:04:54.720 --> 0:04:57.040 much as a T and T did some time ago, 0:04:57.360 --> 0:05:01.160 have to think about setting up unread related businesses to 0:05:01.279 --> 0:05:06.880 potentially drive their returns and continue to attract investor attention. Well, 0:05:06.920 --> 0:05:10.279 that brings up the ultimate question of risk, regulatory risk 0:05:10.320 --> 0:05:13.080 for these companies. Is there a scenario where they could 0:05:13.200 --> 0:05:16.400 be broken up? That's certainly something that Senator Elizabeth Warren 0:05:16.400 --> 0:05:20.000 and presidential kendidate Elizabeth Warren has suggested. Well, I mean 0:05:20.600 --> 0:05:24.240 going towards a breakup, you know, is a possible solution 0:05:24.480 --> 0:05:28.960 or a possible scenario, um, but one which arguably comes 0:05:29.000 --> 0:05:31.880 after you've gone through this process of inquiry and very 0:05:31.960 --> 0:05:36.640 likely you go past the general election. Um, you know, 0:05:36.680 --> 0:05:38.800 with the solution you know doesn't get imposed with a 0:05:38.880 --> 0:05:42.120 hundred and seventeen Congress when it adjourns in two thousand 0:05:42.200 --> 0:05:44.159 twenty one. I think it may take a little longer 0:05:44.160 --> 0:05:46.560 than that, But the fact is it's on the horizon 0:05:46.800 --> 0:05:48.960 and investors and looking at the sector have to have 0:05:49.080 --> 0:05:53.839 this on their radar. What's the next step for regulatory action? 0:05:53.880 --> 0:05:56.920 From your point of view, you're expecting, um, I think 0:05:56.920 --> 0:06:01.080 it's really more a matter of various entities, whether it's 0:06:01.120 --> 0:06:03.760 the Department Justice, whether it's a Federal Trade Commission, whether 0:06:03.800 --> 0:06:08.719 it's the Antitrust Subcommittee of the House Judicial Committee conducting 0:06:08.760 --> 0:06:12.200 their hearings. And as these hearings and inquiries are conducted, 0:06:12.360 --> 0:06:15.640 clearly there's going to be a news flow coming out 0:06:15.680 --> 0:06:18.200 of these. Um. Clearly, the people who are going to 0:06:18.279 --> 0:06:21.000 do well out of all this are the lobby armies 0:06:21.120 --> 0:06:24.120 of K Street down in Washington, d C. It's going 0:06:24.160 --> 0:06:27.640 to be a bang up year, uh for attorneys going 0:06:27.680 --> 0:06:31.120 into and Paul, it already has been. It already has been. 0:06:31.120 --> 0:06:33.480 It's that something has never changed. David Garretty, thank you 0:06:33.520 --> 0:06:36.080 so much for joining us. David's a chief market strategist 0:06:36.080 --> 0:06:39.800 at laid Long Company, also partner at bt block talking technology, 0:06:39.839 --> 0:06:43.200 We've got tech earnings this week and uh, clearly investors 0:06:43.200 --> 0:06:46.560 will be focusing on the operations of these companies, as 0:06:46.560 --> 0:06:48.880 they should, but they will also be focusing, I think increasingly, 0:06:48.920 --> 0:06:52.480 as David suggested, on the regulatory oversight that these companies 0:06:52.520 --> 0:06:55.120 are now finding themselves under, which is a little bit 0:06:55.120 --> 0:06:57.280 of a new issue for them. Most of these tech 0:06:57.320 --> 0:07:01.520 companies historically have uh you know, you know, dealt with 0:07:01.640 --> 0:07:06.160 European oversight, but not necessarily oversight coming from US regulators 0:07:06.279 --> 0:07:09.120 US politicians. That appears to be changing. The question is 0:07:09.360 --> 0:07:10.840 how will they deal with it and will there be 0:07:10.880 --> 0:07:25.040 some winners and losers. The scores of ultra net worth 0:07:25.160 --> 0:07:29.600 families haven't risen dramatically over the past few decades, and 0:07:29.680 --> 0:07:33.080 a big question now for those investors is where do 0:07:33.120 --> 0:07:36.200 they put their money at a time of high evaluations, 0:07:36.280 --> 0:07:40.400 easing central banks, and some concerns growing about the momentum 0:07:40.520 --> 0:07:42.680 in the global economy. Here to answer all of those 0:07:42.760 --> 0:07:45.480 questions is Michael Son and Felt. He's chairman and founder 0:07:45.480 --> 0:07:49.400 of Tiger twenty one, which is a consortium of ultra 0:07:49.560 --> 0:07:54.720 net worth investors who get together and talk honestly about 0:07:54.760 --> 0:07:58.520 what they're doing. If I get that correctly, Michael, um, so, 0:07:58.680 --> 0:08:01.520 thank you for being here. What's the latest in terms 0:08:01.680 --> 0:08:05.280 of the optimism or lack thereof among the members of 0:08:05.320 --> 0:08:08.840 Tiger One. Thanks for having me uh over the last 0:08:08.920 --> 0:08:13.160 six months. Sentiment is shifting slowly today. People are less 0:08:13.240 --> 0:08:18.080 optimistic those who were very positive or less so, but 0:08:18.200 --> 0:08:22.320 it's still smooth sailing for the moment. People have pulled 0:08:22.360 --> 0:08:24.440 out of a little bit of real estate, brought it 0:08:24.480 --> 0:08:27.880 down from the low thirty percent allocation to the high twenties, 0:08:28.040 --> 0:08:32.400 taking profits where they could. Are members because they're all 0:08:32.720 --> 0:08:36.600 former entrepreneurs, are much more comfortable in the private markets, 0:08:36.640 --> 0:08:39.439 private equity, private real estate, so they only have about 0:08:39.440 --> 0:08:43.480 twenty three percent allocation to the public markets. Hedge funds 0:08:43.480 --> 0:08:46.200 have been very low, but the hedge funds that are 0:08:46.200 --> 0:08:49.600 getting interest now are the defensive hedge funds what would 0:08:49.600 --> 0:08:53.520 be called credit funds where you have distressed debts. So 0:08:53.640 --> 0:08:56.600 there are a lot of distress debt funds gearing up 0:08:56.840 --> 0:08:59.360 ready for the next downturn, and our members are looking 0:08:59.400 --> 0:09:01.480 at that as well. So, Michael, one of the things 0:09:01.559 --> 0:09:03.680 that we've noticed this was some of these tech companies 0:09:03.679 --> 0:09:06.280 coming public like Uber and Lift, for example, is that 0:09:06.600 --> 0:09:10.720 maybe the valuations in the private market have gotten maybe stretched, 0:09:10.760 --> 0:09:13.000 so when they come to the equity public markets they 0:09:13.600 --> 0:09:16.520 maybe even have a down evaluation. What are your members 0:09:16.520 --> 0:09:20.120 saying about, given that they are entrepreneurs, about kind of 0:09:20.360 --> 0:09:23.680 valuations in venture world, in the private equity world. So 0:09:23.840 --> 0:09:28.440 the valuations are clearly high in the public markets. Um, 0:09:28.480 --> 0:09:32.400 but long term people still believe that, for instance, technology 0:09:32.480 --> 0:09:38.320 stocks have greater scalability. Uh So after the index funds, 0:09:38.360 --> 0:09:41.480 which are members are increasingly interested in because they know 0:09:41.600 --> 0:09:45.200 they can't outperform the market, tech stocks would be the 0:09:45.280 --> 0:09:48.520 one subset. But even within tech stocks now you have 0:09:48.600 --> 0:09:52.320 a divergence. Whereas a year ago our members thought, uh, 0:09:52.520 --> 0:09:56.120 Amazon and Facebook were two tech stocks. With all the 0:09:56.200 --> 0:10:01.400 challenges facing Facebook today regulatory and so forth, those are diverging. 0:10:01.440 --> 0:10:03.600 I would say our members are a little less interested 0:10:03.640 --> 0:10:06.040 in Facebook, although it had good earnings, it now has 0:10:06.040 --> 0:10:09.760 a five billion dollar fine. Amazon doesn't have those problems today. 0:10:10.000 --> 0:10:13.760 So I'm curious you said that your members were reducing 0:10:13.760 --> 0:10:17.280 their allocation to real estate slightly. I'm wondering if you 0:10:17.320 --> 0:10:19.000 can give me a sense or give us a sense 0:10:19.559 --> 0:10:24.079 of where they're reducing those allocations. In other words, in 0:10:24.120 --> 0:10:26.360 the big cities, is it and warehouses the commercial So 0:10:27.120 --> 0:10:29.600 first of all, in real estate, you really have a 0:10:29.600 --> 0:10:32.440 tail of two cities. You have the gateway cities where 0:10:32.480 --> 0:10:36.560 prices are still very high, and outside of the gateway 0:10:36.600 --> 0:10:40.840 cities you have things like the retail apocalypse where you 0:10:40.920 --> 0:10:43.720 have streets that are just empty of retailers because of 0:10:43.720 --> 0:10:47.360 what's going on. So retail is still real estate is 0:10:47.400 --> 0:10:50.920 still our members largest allocation. That's an important thing. So 0:10:50.960 --> 0:10:53.040 the fact that it came down from the high thirties 0:10:53.080 --> 0:10:57.640 to tent, it's still their largest allocation. What they've done 0:10:58.280 --> 0:11:01.120 is where they had an opportunit unity to take low 0:11:01.200 --> 0:11:05.240 hanging fruit that was easily sold at a very high value, 0:11:05.280 --> 0:11:08.240 they took those off to build cash and get ready 0:11:08.280 --> 0:11:10.800 for the next downturn. So that's that was gonna be 0:11:10.840 --> 0:11:13.400 my next question. What do they buy? And it sounds 0:11:13.440 --> 0:11:17.480 like they bought nothing if they're buying it in the 0:11:17.520 --> 0:11:20.800 real estate is more on the income producing side rather 0:11:20.880 --> 0:11:25.640 than the speculative side. Unless because our members so many 0:11:25.720 --> 0:11:28.600 made their money in real estate, sometimes they can see 0:11:28.600 --> 0:11:31.959 a value that nobody else can see. An empty building 0:11:31.960 --> 0:11:35.000 to you might be frightening, it might be an extraordinary 0:11:35.040 --> 0:11:38.320 opportunity to one of our members. But generally there's a 0:11:38.360 --> 0:11:42.040 lot of interest in income substitutes. So workforce housing, as 0:11:42.080 --> 0:11:45.960 an example, is very stable, good cash flows or although 0:11:46.000 --> 0:11:48.360 even that's gotten a little price over the last year 0:11:48.440 --> 0:11:51.040 or two. So, Michael, where are you seeing with your 0:11:51.120 --> 0:11:53.679 company Tiger twenty one? Where are you seeing the growth 0:11:53.840 --> 0:11:56.840 in wealth? I mean, I'm assuming that you know, you 0:11:56.840 --> 0:11:58.400 know there are lots of billionaires in the U s. 0:11:58.440 --> 0:12:01.280 Where are you seeing the growth? Were you opening groups 0:12:01.280 --> 0:12:04.840 and offices and so on? So we've identified the sixty 0:12:04.960 --> 0:12:08.960 markets around the globe that members like Tiger members would 0:12:09.000 --> 0:12:12.000 like to either work in, live in, invest in, or 0:12:12.800 --> 0:12:16.160 connect to. We're already in over thirty of those markets, 0:12:16.160 --> 0:12:18.960 so over the next five years will probably roll out 0:12:19.000 --> 0:12:22.080 the next thirty. Our market, by the way, is not 0:12:22.200 --> 0:12:26.040 the billionaires. Our market is from ten million to a billion. 0:12:26.080 --> 0:12:29.000 People have created all the great meat and potato businesses, 0:12:29.040 --> 0:12:31.120 And one way to think about it, if you're a 0:12:31.120 --> 0:12:35.080 Major League football, baseball or basketball player, you're about one 0:12:35.080 --> 0:12:39.840 in seventeen thousand by accomplishment. Our members are of a 0:12:39.960 --> 0:12:45.319 similar scale of success within their field of entrepreneur minus 0:12:45.360 --> 0:12:47.800 the all stars. We don't we don't go for the billionaires. 0:12:48.880 --> 0:12:51.640 I'm wondering when you talk about building cash or getting 0:12:51.679 --> 0:12:56.400 defensive or distressed debt investors trying raising capital to deploy 0:12:57.000 --> 0:13:00.320 to take advantage of a downturn, why are they like 0:13:00.400 --> 0:13:02.880 that's going to happen somewhat soon, given the fact that 0:13:02.920 --> 0:13:05.400 you've got central banks that are easing and doing what 0:13:05.440 --> 0:13:09.000 they kind of prevented. Yeah, so I think um OUR 0:13:09.120 --> 0:13:13.920 members are looking for the all elusive, all weather portfolio, 0:13:14.360 --> 0:13:18.040 something that will be durable. We're not traders by nature. 0:13:18.040 --> 0:13:21.400 Are members are entrepreneurs who build businesses over ten, twenty 0:13:21.440 --> 0:13:25.480 thirty years. So they're looking to have a portfolio that 0:13:25.520 --> 0:13:28.800 will last through good times and bad. So they see 0:13:28.800 --> 0:13:31.440 what happened in two thousand eight, what were the strategies 0:13:31.480 --> 0:13:34.720 that did well? And the one thing they know is 0:13:34.760 --> 0:13:36.760 you don't want to ever have to sell at the bottom. 0:13:36.840 --> 0:13:39.679 You have to have enough cash to weather through the bottom, 0:13:39.720 --> 0:13:44.000 so you're not forced to liquidate great assets at discount prices. 0:13:44.640 --> 0:13:47.400 So that would be the that would be the main 0:13:47.480 --> 0:13:50.000 thing is have enough cash not to be forced to 0:13:50.080 --> 0:13:53.280 liquidate your great investments at the wrong time. Paul. This 0:13:53.400 --> 0:13:56.000 is so fascinating to me because it's not just AlterNet 0:13:56.000 --> 0:13:58.400 worth individuals. It's all the big firms still, the big 0:13:58.840 --> 0:14:01.680 private equity firms, private debt firms, etcetera. And I have 0:14:01.800 --> 0:14:04.280 to wonder if this will sort of cushion any blow 0:14:04.360 --> 0:14:07.760 and kind of created buffer on price declines in a 0:14:07.880 --> 0:14:11.120 downturn because you've got just so much cash they're waiting 0:14:11.480 --> 0:14:14.120 to pick up any bargains. Yeah, And I know, I 0:14:14.120 --> 0:14:15.959 mean you'd like to think so maybe we saw that 0:14:16.000 --> 0:14:18.000 in December last year, you know, And we saw that 0:14:18.000 --> 0:14:19.840 in December. We had that sell off in December. H 0:14:19.880 --> 0:14:21.720 And then he came running back this year, Michael Son 0:14:21.760 --> 0:14:23.800 and felt thanks so much for joining us. Michael is 0:14:23.840 --> 0:14:26.680 a chairman and founder of Tiger twenty one but seventy 0:14:26.680 --> 0:14:30.280 one billion dollars under management across all of their members. 0:14:30.280 --> 0:14:35.560 Just a unique way to aggregate wealthy individuals who have 0:14:35.720 --> 0:14:39.360 created companies and value and entrepreneurs. Uh. And the question 0:14:39.480 --> 0:14:43.240 is when those people liquidate their investments, what do they 0:14:43.280 --> 0:14:55.520 do with the cash? Well, yesterday was certainly an important 0:14:55.600 --> 0:14:58.960 day for President Trump, as former Special counsel Robert Mueller 0:14:59.240 --> 0:15:03.280 testified in front of two congressional committees to get a 0:15:03.360 --> 0:15:06.440 post mortem on that performance. We welcome Ken nowadays. He 0:15:06.520 --> 0:15:09.240 is a partner at Venable l l p H. He 0:15:09.320 --> 0:15:12.360 was also a former corruption and fraud prosecutor for the U. S. 0:15:12.400 --> 0:15:15.000 Attorney's Office in the Southern District of New York, Kent. 0:15:15.040 --> 0:15:18.840 Thanks much for joining US. President Trump yesterday claimed that 0:15:18.880 --> 0:15:21.240 it was a great day for him. Do you agree? 0:15:21.960 --> 0:15:25.520 I disagree with that, um, And the reason is, the 0:15:25.560 --> 0:15:28.240 report is still the report. All the facts and the 0:15:28.280 --> 0:15:33.560 report are still the facts. And one thing that Bob 0:15:33.680 --> 0:15:38.440 Mueller did clarify and say pretty pretty strongly was that 0:15:38.560 --> 0:15:42.680 the report did not exonerate the president. So I can't 0:15:42.680 --> 0:15:45.840 say you can say it was a good day. So 0:15:45.880 --> 0:15:50.080 I guess that my question is going forward, what precedent 0:15:50.160 --> 0:15:52.800 does this set? Because the Special prosecutor came out with 0:15:52.800 --> 0:15:55.480 a report he said he could not exonerate President Trump. 0:15:55.760 --> 0:15:58.280 He also said that there were some very concerning things, 0:15:58.280 --> 0:16:01.080 particularly pertaining to the Wiki League section. These are the 0:16:01.120 --> 0:16:03.840 things that the Democrats are sort of clinging to as 0:16:03.920 --> 0:16:06.040 justification for why they did this in the first place, 0:16:06.080 --> 0:16:09.200 because they're getting a bunch of criticism today. My question 0:16:09.360 --> 0:16:13.520 is moving forward, where do we go from here with 0:16:13.560 --> 0:16:16.320 this report? I think we're in the same place we 0:16:16.440 --> 0:16:19.840 were before, which is Bob Mueller has always made it 0:16:19.880 --> 0:16:24.240 clear that he's the third party narrator of a great book. 0:16:24.760 --> 0:16:26.320 But he's not going to give you the last chapter. 0:16:26.920 --> 0:16:29.720 The last chapter has to come from somewhere else. He's 0:16:29.720 --> 0:16:32.000 going to bear witness. He's going to tell you what 0:16:32.040 --> 0:16:34.920 the facts are, but he's not going to be passing judgment. 0:16:35.000 --> 0:16:36.680 So I think we're in the same place where we 0:16:36.720 --> 0:16:39.160 always have been up until this point after the report, 0:16:39.480 --> 0:16:44.280 which is, will there be impeachment proceedings? So let's just 0:16:45.360 --> 0:16:47.920 you know, looking at yesterday and so that the bare 0:16:47.960 --> 0:16:50.840 bones testimony we got yesterday from Mr Mueller plus the report, 0:16:50.920 --> 0:16:52.560 you think that moves the needle at all as it 0:16:52.600 --> 0:16:55.440 relates to the legal jeopardy of the president Trump will 0:16:55.440 --> 0:16:59.080 face either while he's in office or after office. It 0:16:59.800 --> 0:17:03.640 may maybe it moves it, uh where he's in more jeopardy. 0:17:03.720 --> 0:17:06.440 And the reason for that is not because Bob Muller 0:17:06.520 --> 0:17:08.880 brought anything new to the table that wasn't in the report. 0:17:09.240 --> 0:17:13.600 It's because the public discourse, the public vetting, the public 0:17:13.640 --> 0:17:17.040 attention on the facts in that report are still being 0:17:17.080 --> 0:17:20.760 discussed and focused on, and frankly, the more you look 0:17:20.760 --> 0:17:23.080 at those facts in that report, the more you talk 0:17:23.119 --> 0:17:26.440 about them, it's kind of hard not to look away. 0:17:26.760 --> 0:17:30.280 The more that I listened to Robert Mueller yesterday and 0:17:30.400 --> 0:17:33.399 his comments since the publication of the report, the brief 0:17:33.440 --> 0:17:35.960 ones that he has made, the more of the contrast 0:17:36.040 --> 0:17:39.959 between him and some of the politicians UH, sort of 0:17:40.040 --> 0:17:42.359 remains stark in my mind. This idea that he is 0:17:42.400 --> 0:17:45.920 committed to process. He wants to basically say, the institution 0:17:46.200 --> 0:17:49.280 will provide justice. I am committed to it. He has 0:17:49.320 --> 0:17:53.400 a commensurate marine. As a recent guest UH said, I'm 0:17:53.440 --> 0:17:58.239 just wondering whether career prosecutors and career workers UH in 0:17:58.320 --> 0:18:02.280 the US government our our story to change their mentality 0:18:02.320 --> 0:18:06.199 about faith in the institution if they feel like it 0:18:06.320 --> 0:18:09.960 isn't rewarded in the sense of, you know, actually being 0:18:10.000 --> 0:18:13.680 as meaningful as they hoped. I think with that question, 0:18:13.840 --> 0:18:17.320 the d o j's credibility as an institution is taking 0:18:17.920 --> 0:18:21.480 a hit with these proceedings, with what's going on with 0:18:21.920 --> 0:18:25.680 how everything was handled, and you know, I don't know 0:18:25.880 --> 0:18:29.600 what line d o J, A U, sas and prosecutors 0:18:29.640 --> 0:18:34.359 are thinking but it's got to hurt and UM it's 0:18:35.200 --> 0:18:40.080 my question is whether this is a permanent shift of 0:18:40.760 --> 0:18:44.439 the viewpoint of d o J and federal their place 0:18:44.720 --> 0:18:49.160 in federal prosecutions and and and seeking justice, or whether 0:18:49.280 --> 0:18:53.600 this will revert back to the norm. So con it's 0:18:53.640 --> 0:18:56.320 not just the Muller investigations. The President Trump also is 0:18:56.359 --> 0:18:59.400 facing some potential liability with investigations here in New York. 0:18:59.440 --> 0:19:02.760 I think the federal there's some federal prosecutors as well 0:19:02.800 --> 0:19:04.879 as a Southern District of New York looking at some 0:19:04.920 --> 0:19:07.800 of the Trump organizations, for example, can give us an 0:19:07.840 --> 0:19:09.679 update on where you think the statusus of some of 0:19:09.720 --> 0:19:12.679 those investigations are we well, first off, I think it 0:19:12.880 --> 0:19:17.119 seems pretty clear that the campaign finance fraud investigation that 0:19:17.200 --> 0:19:20.680 the Southern District of New York was looking into up 0:19:20.720 --> 0:19:23.800 here has been closed. And I'm basing that on the 0:19:23.880 --> 0:19:28.520 unsealing letter that was submitted to Michael Cohen's uh sentencing 0:19:28.560 --> 0:19:31.760 court that said that part of the investigation is done. 0:19:32.280 --> 0:19:36.320 UM I don't know where the investigation stands with respect 0:19:36.359 --> 0:19:39.240 to the Trump organization. I know it's been publicly reported 0:19:39.280 --> 0:19:43.120 that there are those investigations going on. UM as well 0:19:43.200 --> 0:19:46.320 as investigations by the New York Attorney General, who I 0:19:46.359 --> 0:19:50.400 suspect UH is going to be more aggressive because they're 0:19:50.920 --> 0:19:53.879 not part of the federal system. I'm wondering what do 0:19:53.920 --> 0:19:59.160 you think is most discouraging for federal prosecutors and career 0:19:59.119 --> 0:20:01.440 prep the government with respect to the way that the 0:20:01.520 --> 0:20:09.920 Muller investigation was handled it. I think the unfairness of 0:20:10.760 --> 0:20:16.520 both sides in asking UH Mueller and his team to 0:20:16.560 --> 0:20:20.360 do something that they were somewhat constrained from doing. They 0:20:20.359 --> 0:20:24.560 were doing their job, and having your work turned into 0:20:24.760 --> 0:20:28.240 a partisan fight, I think is what is discouraging for people. 0:20:29.040 --> 0:20:32.600 I think also seeing it play out in public, the tension, 0:20:32.720 --> 0:20:36.960 the obvious tension between the Attorney general Attorney General Barr 0:20:37.119 --> 0:20:41.160 and Mueller and his team, where it's publicly displayed that 0:20:41.480 --> 0:20:46.359 they had differing views about what conclusions Mueller could reach 0:20:46.760 --> 0:20:50.240 or not, and Bar took it upon himself to reach 0:20:50.240 --> 0:20:53.840 a conclusion um that Mueller didn't, and seeing that play 0:20:53.880 --> 0:20:57.879 out in public, it really hurts. So you know, in 0:20:57.920 --> 0:21:00.640 the legal community today, do you think the mull report 0:21:01.200 --> 0:21:04.639 UH serves as a basis for impeachment? Is that the 0:21:04.680 --> 0:21:06.680 belief or is the belief that there's just not enough 0:21:06.760 --> 0:21:12.800 there I think the Mulla report is a there is 0:21:13.080 --> 0:21:17.879 a lot of there there um, and it is incumbent 0:21:18.040 --> 0:21:20.399 on the fact finders, and here the fact finders are 0:21:20.480 --> 0:21:23.880 ultimately going to be Congress to decide and past judgment. 0:21:24.240 --> 0:21:28.160 But it's a very in depth report with a lot 0:21:28.240 --> 0:21:34.719 of juicy facts, uh, inculpatory facts in there. Cod Nowaday, 0:21:34.800 --> 0:21:37.119 thank you so much for being with us. Your thoughts 0:21:37.200 --> 0:21:41.560 are always insightful. Can nowadays a partner at Venable L L. P. 0:21:41.880 --> 0:21:45.199 He is a former prosecutor at the U. S. Attorney's 0:21:45.240 --> 0:21:47.560 Office in the Southern District of New York. He spent 0:21:47.640 --> 0:22:04.679 nine years. They're focusing on corruption and fraud. Time to 0:22:04.760 --> 0:22:07.520 check in with the Bloomberg Opinion. We're joined by opinion 0:22:07.520 --> 0:22:10.119 Commas at least, Martin Uzi at least thanks so much 0:22:10.160 --> 0:22:12.160 for joining us. We had a big day for Marrier 0:22:12.240 --> 0:22:15.080 drage today and the e c B let's see already 0:22:15.080 --> 0:22:18.240 had to say there is surrounding euro Area growth out 0:22:19.080 --> 0:22:24.439 remained tilted to the downside, reflecting the prolonged presence of 0:22:24.560 --> 0:22:29.800 uncertainty is related to geopolitical factors. The rise in threat 0:22:29.880 --> 0:22:35.639 of protection is and vulnerabilities in emerging markets. That was 0:22:35.720 --> 0:22:39.720 ECB President Mario Draggy speaking this morning talking about the 0:22:40.520 --> 0:22:43.600 slowdown in growth and some of the concern there at 0:22:43.680 --> 0:22:46.320 least Martinous Bloomberg Plenty opinion columns, thanks so much for 0:22:46.400 --> 0:22:48.119 joining us at least it just real quickly, What was 0:22:48.160 --> 0:22:51.320 your main takeaway from what we heard this morning from 0:22:51.359 --> 0:22:54.399 Mr dry Well. I think you know there's going to 0:22:54.440 --> 0:22:56.960 be you know, some some stimulus on the way. Um 0:22:57.000 --> 0:22:59.000 he's signally this might you know, come as as soon 0:22:59.000 --> 0:23:03.200 as September. You saw banks initially rally on the back 0:23:03.240 --> 0:23:07.760 of expectations that there might well be someb mitigating actions 0:23:07.840 --> 0:23:10.399 for them in the way of potentially deposit tearing. Of course, 0:23:10.560 --> 0:23:13.320 the banks have to pay the ECB money. Um, I 0:23:13.400 --> 0:23:15.080 have to pay the ECB two part their funds, and 0:23:15.119 --> 0:23:18.040 that's been hurting them and and that's where we are. 0:23:19.080 --> 0:23:20.879