WEBVTT - Deutsche Bank’s Board Can't Seem To Grasp Corporate Governance 0:00:05.800 --> 0:00:08.720 Welcome to the Bloomberg pm L Podcast. I'm Pim Fox. 0:00:08.760 --> 0:00:11.520 Along with my co host Lisa Bramowitz. Each day we 0:00:11.600 --> 0:00:15.120 bring you the most important, noteworthy, and useful interviews for 0:00:15.200 --> 0:00:17.800 you and your money, whether you're at the grocery store 0:00:17.960 --> 0:00:20.720 or the trading floor. Find the Bloomberg p m L 0:00:20.840 --> 0:00:28.040 Podcast on Apple Podcasts, SoundCloud and Bloomberg dot com. Deutsche 0:00:28.040 --> 0:00:31.120 Bank has been having a terrible year and it has 0:00:31.240 --> 0:00:35.120 just gotten or. Joining us to discuss is Leonel Ronky 0:00:35.240 --> 0:00:38.360 is a Bloomberg opinion columnist. Let's talk about what happened 0:00:38.600 --> 0:00:43.000 officials rated Deutsche Bank offices. What were they looking for? 0:00:43.120 --> 0:00:49.360 Why now? And how much lower can these shairs go? Um? Well, 0:00:49.400 --> 0:00:51.279 I mean they can always go a lot lower, as 0:00:51.320 --> 0:00:54.240 we've seen over the past a few years in terms 0:00:54.280 --> 0:00:57.640 of what they were looking forward. Why now? I mean, look, 0:00:57.800 --> 0:00:59.640 there's a lot we don't know. But the fact is this, 0:00:59.800 --> 0:01:04.240 this seems to be linked to the Panama Papers scandal, 0:01:04.360 --> 0:01:07.760 the leaks a couple of years ago, a huge whate 0:01:07.800 --> 0:01:15.760 of documents detailing offshore accounts and assets you know, squirreled away, uh, 0:01:15.760 --> 0:01:18.520 and it seems to have caught up with Deutsche Bank 0:01:18.560 --> 0:01:21.600 and a couple of unnamed employees who seems to be 0:01:21.720 --> 0:01:23.679 part of the part of the probe. So I guess 0:01:24.120 --> 0:01:26.080 one more, one more thing to worry about on a 0:01:26.120 --> 0:01:28.920 long list of things to worry about, Leonel, the shares 0:01:29.000 --> 0:01:31.360 of Deutsche Bank. They are lower by more than five percent. 0:01:31.440 --> 0:01:34.520 They've lost more than fifty percent of their value this year, 0:01:34.959 --> 0:01:39.240 and just earlier today, as Lisa was referencing, six different 0:01:39.280 --> 0:01:44.920 Deutsche Bank properties were searched by police. Police vehicles lined 0:01:45.000 --> 0:01:50.640 up outside of Deutsche Bank's central Frankfort headquarters and according 0:01:50.680 --> 0:01:53.440 to a person who's familiar with the matter, one of 0:01:53.480 --> 0:01:56.840 the two people being probe by Frankfort prosecutors and the 0:01:56.880 --> 0:02:07.600 money laundering investigations works in the bank's anti financial crime section. Yeah, 0:02:07.640 --> 0:02:11.680 and look, bigger picture is right, money laundering, as we've 0:02:11.680 --> 0:02:14.440 seen at the Danska bank scandal. This, you know, money 0:02:14.520 --> 0:02:17.800 laundering is not something that's restricted to one bank or 0:02:17.840 --> 0:02:21.200 unique to one bank, and sadly, even banks that say 0:02:21.240 --> 0:02:24.440 they have the right controls often failed at the hurdle. 0:02:24.639 --> 0:02:28.160 I just think the bigger picture goes beyond the sort 0:02:28.160 --> 0:02:30.720 of the shot can or of this investigation. You know, 0:02:30.760 --> 0:02:34.359 Deutsche Bank is a bank that has had a lot 0:02:34.360 --> 0:02:36.959 of problems to do with its compliance and its controls 0:02:37.040 --> 0:02:39.240 even before this. It's the reason why it failed the 0:02:39.280 --> 0:02:41.200 US stress test. It's it's the reason why I had 0:02:41.200 --> 0:02:43.040 a bunch of fines. It's part of the reason why 0:02:43.040 --> 0:02:45.120 it's lost money for three years in a row. I 0:02:45.160 --> 0:02:47.360 think even if you, even if you didn't know about 0:02:47.360 --> 0:02:49.919 today's probe, you would really have reason to worry about 0:02:49.960 --> 0:02:55.080 the simple operational control at this institution. It's a it's 0:02:55.120 --> 0:02:59.360 a serious concern. Who is to blame for the institutional 0:02:59.480 --> 0:03:01.880 laps that seemed to be coming up again and again 0:03:01.919 --> 0:03:05.760 here at George Bank. So I think that's not wishing 0:03:05.800 --> 0:03:08.120 to point the finger anyone in particular, but you really 0:03:08.120 --> 0:03:12.400 have to question the board's the board's behavior, that the 0:03:12.440 --> 0:03:14.600 board's way of acting over the past couple of years. 0:03:15.120 --> 0:03:17.960 We had the previous CEO, John cry and do it 0:03:18.440 --> 0:03:20.040 do a pretty good job of at least trying to 0:03:20.040 --> 0:03:23.240 get the bank to survive in the face of fines 0:03:23.400 --> 0:03:25.760 and just trying to adapt to the post crisis world. 0:03:26.240 --> 0:03:28.440 And he did, he did, He did actually succeed in 0:03:28.560 --> 0:03:31.639 raising capital at the bank, and he was pushed out 0:03:31.639 --> 0:03:34.640 in a very messy, very hasty way, earlier this year 0:03:35.000 --> 0:03:36.960 and the new CEO seems to not be getting a 0:03:36.960 --> 0:03:39.200 handle on things at all, and there's now talk of 0:03:39.200 --> 0:03:43.040 a whole new round of executives being pushed out. And 0:03:43.080 --> 0:03:45.560 I think at some point, if if this keeps getting worse, 0:03:45.560 --> 0:03:46.920 people are going to have to look at the board 0:03:46.920 --> 0:03:49.960 and think what's happening? Why is the chairman still here? 0:03:50.000 --> 0:03:52.000 Why is the board the way it is? This clearly 0:03:52.200 --> 0:03:55.000 has got to stop. But the accountability goes way beyond 0:03:55.440 --> 0:03:58.560 the CEO and the current management. You know, does this 0:03:58.760 --> 0:04:03.280 create operation of paralysis at an institution such as Deutsche Bank? 0:04:04.480 --> 0:04:07.760 I think it's worse than paralysis. It's it just seems 0:04:07.800 --> 0:04:11.040 like it's completely disorderly. If you think about it, wouldn't 0:04:11.080 --> 0:04:14.120 it be worth a bit of paralysis just to control things? 0:04:14.120 --> 0:04:16.640 If if this is a control failure, wouldn't it be 0:04:16.680 --> 0:04:18.960 worth spending all You've got to at least throw a 0:04:19.040 --> 0:04:21.919 line under all this? Think of all of the trading 0:04:21.920 --> 0:04:24.560 mishaps that every year there's a risk management blow up. 0:04:24.600 --> 0:04:27.359 They try and protect against risk but also make money 0:04:27.360 --> 0:04:30.680 and it doesn't work, you know though, I mean to 0:04:30.720 --> 0:04:34.800 be fair, right, all banks are involved in different mixes 0:04:34.839 --> 0:04:37.680 of businesses and some are more risk prone than others, right, 0:04:37.720 --> 0:04:39.440 I mean, just let's get that out there. I mean, 0:04:39.440 --> 0:04:42.760 if you're dealing with for private wealth, for example, you 0:04:42.800 --> 0:04:44.800 have to be really careful not to be dealing with 0:04:44.839 --> 0:04:47.560 tax evasion or money laundering or other things like that. 0:04:47.640 --> 0:04:52.360 Correspondence banking similar risk issues here. So is joy to 0:04:52.480 --> 0:04:56.800 Bank unique in some of its transgressions or is this 0:04:56.960 --> 0:04:59.520 just the mix of businesses that it's got itself in 0:05:00.120 --> 0:05:03.159 higher risk and perhaps they didn't amp up the risk 0:05:03.200 --> 0:05:06.280 management as much as they should have. Let me put 0:05:06.320 --> 0:05:08.720 it this way, we we there is no secret to 0:05:08.839 --> 0:05:12.359 dorture banks issues. It has a gigantic balance sheet, it 0:05:12.480 --> 0:05:16.279 is primarily exposed to investment banking. But given that we 0:05:16.320 --> 0:05:20.240 have been in this downward spiral since do you not 0:05:20.360 --> 0:05:23.640 think that this goes beyond some kind of sectoral issue. 0:05:24.160 --> 0:05:26.800 Isn't it time that there was a question made about 0:05:26.839 --> 0:05:29.960 who is controlling this bank and what the operational control is. 0:05:30.520 --> 0:05:33.960 I genuinely don't see how the current situation where you 0:05:34.040 --> 0:05:36.200 have the old CEO pushed out in favor of a 0:05:36.240 --> 0:05:39.080 new CEO in a completely messy way, but the bard 0:05:39.120 --> 0:05:43.039 remains unchanged, and the current situation where you find the 0:05:43.120 --> 0:05:44.840 rate is one thing, but forget even the rate. The 0:05:45.000 --> 0:05:47.919 reports coming out that the CEO is considering replacing the 0:05:47.960 --> 0:05:51.440 head of regulation, the head of US banking, and the 0:05:51.480 --> 0:05:54.320 head of the investment bank potentially all in one go. 0:05:54.880 --> 0:05:57.359 And I just think that tells you that there is 0:05:57.360 --> 0:06:03.080 a complete lack of under standing of how to get control, 0:06:03.200 --> 0:06:05.640 how to get a grip on this. And I think 0:06:05.640 --> 0:06:08.599 this goes way beyond saying well, this is the business 0:06:08.600 --> 0:06:11.520 of banking. That's that's that's my view. Thanks very much 0:06:11.600 --> 0:06:16.080 for being with us, Leonel laurent Is Bloomberg Opinion columnists. 0:06:16.120 --> 0:06:20.000 He joins us from London speaking about Deutsche Bank and 0:06:20.240 --> 0:06:24.840 the raid that was initiated today on their Frankfort headquarters. 0:06:25.200 --> 0:06:28.760 Shares of Deutsche Bank are lower by five percent, and 0:06:28.800 --> 0:06:31.479 as we mentioned, they are lower by more than fifty 0:06:31.600 --> 0:06:37.800 percent so far this year. I want to bring in 0:06:37.839 --> 0:06:41.320 our own legal expert here at June Grosso or legal 0:06:41.320 --> 0:06:44.720 analyst and co host of Bloomberg Law, to tell us 0:06:44.760 --> 0:06:49.000 more about this rather extraordinary turn of events. Tell us 0:06:49.000 --> 0:06:52.599 a little bit about what the plea deal with Michael 0:06:52.640 --> 0:06:56.160 Cohen would involve, and why does pleading guilty to lying 0:06:56.200 --> 0:07:00.120 to the Senate Intelligence Committee in why is that a 0:07:00.160 --> 0:07:04.000 big deal? It's a big deal because of the significance 0:07:04.000 --> 0:07:08.440 of this to the Mueller investigation. When Michael Cohen pleaded 0:07:09.320 --> 0:07:13.120 earlier this year to federal charges, that was not that 0:07:13.200 --> 0:07:14.920 was at the Southern District of New York. It was 0:07:14.960 --> 0:07:17.720 not related to the Mueller investigation. In fact, Mueller had 0:07:17.720 --> 0:07:21.680 handed off Michael Cohen so to speak to the Southern District. 0:07:21.720 --> 0:07:24.280 So everyone assumed that, oh, he has nothing to contribute 0:07:24.320 --> 0:07:27.400 to the Mueller investigation. Then you remember that his attorney, 0:07:27.480 --> 0:07:30.760 Lannie Davis, went on TV several times and talked to 0:07:30.840 --> 0:07:33.760 different outlets and said he has a lot to give here. 0:07:33.800 --> 0:07:36.320 It was almost as a plea to the Special Council. 0:07:36.600 --> 0:07:38.760 Talked to Michael Cohen because we want to we want 0:07:38.760 --> 0:07:43.040 to deal Michael Cohen's other plea. There was no deal involved, 0:07:43.040 --> 0:07:45.920 which was sort of shocking to most lawyers. Why make 0:07:45.960 --> 0:07:48.040 a plea when you don't have a deal. This is 0:07:48.080 --> 0:07:52.400 now a cooperation agreement with the Special Counsel. He's pleading 0:07:52.440 --> 0:07:56.920 to new charges and it's about the statements that he made. 0:07:57.000 --> 0:07:59.800 And you heard President Trump referred to us refer to 0:07:59.840 --> 0:08:02.400 that statement that Michael Cohen well, Michael Cohn is now 0:08:02.480 --> 0:08:05.840 saying that was a lie. We didn't end negotiations for 0:08:05.880 --> 0:08:11.720 the Russia tower in Moscow in January. They continued until June, 0:08:11.840 --> 0:08:15.360 when he was the presumptive GOP nominee. Yeah. Well, let's 0:08:15.440 --> 0:08:18.520 let's find out more about that Russia deal that President 0:08:18.520 --> 0:08:21.200 Trump said everybody knew about. Let's bring in Larry Liebert, 0:08:21.800 --> 0:08:24.920 who is in Washington, d C. For Bloomberg News. Larry, 0:08:24.920 --> 0:08:26.640 thank you so much for being with us. Can you 0:08:26.680 --> 0:08:30.200 give us a sense of what this Moscow property deal 0:08:30.520 --> 0:08:34.439 was and how it's relevant to this whole ongoing discussion 0:08:34.679 --> 0:08:39.880 of conspiracy or collusion. I think, first of all, there's 0:08:39.880 --> 0:08:42.120 been a lot of talk that the Muller pro will 0:08:42.320 --> 0:08:45.080 peter out in regard to the President. You know, he 0:08:45.120 --> 0:08:48.240 doesn't really have anything direct on the President. He's about 0:08:48.280 --> 0:08:52.920 to close shop, not at all to suggests. Uh. And 0:08:52.920 --> 0:08:57.920 and the plea here uh indicates uh that there was 0:08:57.960 --> 0:09:01.760 an effort to cover up or at least minimize this 0:09:01.920 --> 0:09:06.480 talk of a Trump tower in Moscow as an issue 0:09:06.520 --> 0:09:09.320 that was indeed settled in January, when in fact it 0:09:09.400 --> 0:09:12.960 was June. And uh, you know, in his uh now 0:09:14.400 --> 0:09:21.080 erroneous Uh deceptive testimony to Congress. Uh. Cone had made 0:09:21.080 --> 0:09:23.559 a big point that we stopped talking about this way 0:09:23.600 --> 0:09:26.880 before the Iowa caucuses or any of the primaries. Uh, 0:09:26.920 --> 0:09:29.920 Today's saying no, the talks continued now. The President shrugged 0:09:29.920 --> 0:09:33.360 it off. He said, UH that first of all, that 0:09:33.440 --> 0:09:36.560 Cone is a liar, but secondly that Uh, there was 0:09:36.600 --> 0:09:41.959 nothing wrong about pursuing a deal. Uh. But mother may 0:09:42.040 --> 0:09:44.480 have different ideas on that. In terms of the reasons, 0:09:44.559 --> 0:09:47.400 he had said, is the motives to collude with Russia 0:09:48.400 --> 0:09:53.400 June Crosso. The President also during this impromptu news conference, 0:09:53.640 --> 0:09:58.319 said that one of the reasons why the conversations continued 0:09:58.600 --> 0:10:01.640 about the tower of the real estate project in Russia 0:10:01.720 --> 0:10:05.080 is he did not know, obviously the outcome of the U. 0:10:05.200 --> 0:10:09.520 S election, and that by foregoing the possibility of a 0:10:09.559 --> 0:10:13.040 business deal, he would be hurting his business. It's not 0:10:13.120 --> 0:10:16.160 about the deal. It's about what was said about the 0:10:16.200 --> 0:10:18.839 deal and what the intent was and what went on 0:10:18.880 --> 0:10:20.920 about the deal. So it's not the deal itself. That's 0:10:20.960 --> 0:10:23.160 sort of a diversion. You know, he could make a deal. 0:10:23.280 --> 0:10:27.520 It's a business. But in Michael the information for Cohen's plea, 0:10:27.920 --> 0:10:29.520 what he says, and this really goes to the heart 0:10:29.520 --> 0:10:31.200 of what you're asking. He said that he made false 0:10:31.240 --> 0:10:34.520 statements to minimize the links between the Moscow project and 0:10:34.600 --> 0:10:38.800 individual one that's President Trump, to give the false impression 0:10:38.840 --> 0:10:42.079 that the Moscow project ended before the Iowa Caucus. That's 0:10:42.120 --> 0:10:45.480 the first primary. And to limit in the hopes of 0:10:45.640 --> 0:10:49.760 limiting the ongoing Russia investigation. That's the key here, the 0:10:49.760 --> 0:10:52.080 hopes of limiting. And also for all the people who 0:10:52.160 --> 0:10:55.360 ask about you know, people say are speculating about what 0:10:55.600 --> 0:10:59.959 is President Trump's connection to Soviet President Vladimir Putin? Russian 0:11:00.000 --> 0:11:04.720 President Ladimir Putin. In this information, Cohen agreed to travel 0:11:04.720 --> 0:11:08.680 to Russia, and they mentioned that the conversations that were 0:11:08.720 --> 0:11:13.320 had between the press secretary for President Putin, he received 0:11:13.400 --> 0:11:16.440 response from the office of Russian official won the press 0:11:16.520 --> 0:11:19.600 secretary for the President of Russia. So and then there 0:11:19.640 --> 0:11:22.000 was an email where he said, it's about the President 0:11:22.040 --> 0:11:25.640 of Russia. They called today, So behind this is all 0:11:25.679 --> 0:11:28.760 the connections to Vladimir Putin. All right, Larry, can we 0:11:28.800 --> 0:11:30.880 take a step back and just talk about what you 0:11:30.960 --> 0:11:34.320 kind of initially said, which is any signs that Robert 0:11:34.400 --> 0:11:38.320 Mueller was winding down his investigation are probably misplaced, and 0:11:38.360 --> 0:11:40.280 this sort of shows that they're very deep in it. 0:11:40.679 --> 0:11:44.320 So what have we learned about the stage of the 0:11:44.400 --> 0:11:48.360 investigation when we'll get a final report? And you know, 0:11:48.559 --> 0:11:52.080 how much does this change the calculus about whether this 0:11:52.240 --> 0:11:55.160 ultimately does go back to President Trump and in some 0:11:55.200 --> 0:11:57.480 way imperil his presidency, because right, I mean, that's that's 0:11:57.480 --> 0:12:00.480 at the end of the day, what everybody is wondering, Well, 0:12:00.520 --> 0:12:04.360 we haven't heard any firm guidance that from sources that 0:12:04.440 --> 0:12:08.520 suggest that there's been a change in our early reporting 0:12:08.559 --> 0:12:11.760 that Mueller was closing in on some some of his 0:12:11.880 --> 0:12:16.280 major conclusions. Uh. But uh, you know, even if he 0:12:16.360 --> 0:12:21.760 issues conclusions, he's set uh in the course for prosecutions, 0:12:21.880 --> 0:12:25.400 for inquiries, uh, not only by his office, but but 0:12:25.520 --> 0:12:27.640 by other U S attorneys that may go on for 0:12:28.200 --> 0:12:31.800 a good while and and trials as well. So uh, 0:12:32.240 --> 0:12:36.319 this thing isn't ending in any case. Um. And the 0:12:36.320 --> 0:12:41.920 the ultimate question, uh, in part is how strongly he 0:12:42.000 --> 0:12:45.880 condemns the president knows around him, Uh, even if he 0:12:45.920 --> 0:12:48.960 finds this has been the general view that you can't 0:12:49.000 --> 0:12:53.920 indict a sitting president. So the plot is thinking now 0:12:53.960 --> 0:12:57.000 that we're past the elections and we will see a 0:12:57.040 --> 0:13:01.000 lot more happening, but exactly the pace and exactly how 0:13:01.280 --> 0:13:04.760 close to the president gets uh, you know, we don't 0:13:04.880 --> 0:13:06.760 yet know. But this is a clue. But it's not 0:13:06.840 --> 0:13:11.080 all over yet. June Grosso, you want to talk about timing, 0:13:11.160 --> 0:13:14.920 I do, because the timing of this is important and 0:13:15.120 --> 0:13:19.760 you might say peculiar. Remember that President Trump submitted answers 0:13:20.000 --> 0:13:24.800 under oath to the Special Counsel's office, and now he's 0:13:24.880 --> 0:13:27.760 locked into those answers, and now all of a sudden 0:13:27.800 --> 0:13:31.960 we have the Cohen Plate, which contradicts perhaps and we 0:13:32.040 --> 0:13:36.760 would say probably contradicts those answers. So the timing is 0:13:36.800 --> 0:13:40.640 really unusual. Also, the Manafort deal falling apart on Monday 0:13:40.679 --> 0:13:44.280 because of information the Special Counsel has. The timing is 0:13:44.360 --> 0:13:47.559 really important and the thing that President Trump is locked 0:13:47.679 --> 0:13:52.560 into those answers really interesting. And we will continue to 0:13:52.720 --> 0:13:56.200 tap both of you for more insight as this develops. 0:13:56.240 --> 0:13:58.760 June Grosso, legal analyst and co host of Bloomberg Law. 0:13:58.920 --> 0:14:02.520 Larry Leebert, national security editor for Bloomer, coming to us 0:14:02.559 --> 0:14:06.160 also from Washington, d C. Thank you very much for 0:14:06.240 --> 0:14:13.440 being with us. Our guest is the honorable Vic Fideli. 0:14:13.480 --> 0:14:16.920 He is the Finance Minister of Ontario. Ontario one of 0:14:17.040 --> 0:14:21.400 thirteen provinces and territories of Canada, and it is home 0:14:21.480 --> 0:14:25.640 to the largest manufacturing segment of the Canadian economy. More 0:14:25.680 --> 0:14:29.400 than fifty of manufacturing happens in Ontario. Minister, thank you 0:14:29.520 --> 0:14:32.480 very much for being here. Tell us currently, what are 0:14:32.480 --> 0:14:36.080 the finances and the economic health of Ontario? While I 0:14:36.120 --> 0:14:41.000 can say that Ontario, while we had a previous government 0:14:41.080 --> 0:14:44.560 in power for fifteen years, our conservative government has now 0:14:45.120 --> 0:14:48.320 been in for five months. And uh, the first thing 0:14:48.360 --> 0:14:51.280 that we did was begin with efficiencies, and we found 0:14:51.320 --> 0:14:54.480 three point two billion dollars worth of efficiencies in the 0:14:54.520 --> 0:14:58.240 last eleven weeks and returned two point seven billion dollars 0:14:58.280 --> 0:15:03.000 back to individuals, families and businesses. So Ontario is back 0:15:03.080 --> 0:15:06.560 and we're open for business. I'm just wondering a lot 0:15:06.600 --> 0:15:09.120 of people from the US when they think about Ontario 0:15:09.240 --> 0:15:11.440 right now here, about what we've heard about the Toronto 0:15:11.520 --> 0:15:14.200 housing market, how much is this on your radar and 0:15:14.360 --> 0:15:17.960 play into your day to day just the incredible surgeon pricing. Well, 0:15:17.960 --> 0:15:20.800 we ended up with what we'll call a soft landing. 0:15:20.840 --> 0:15:23.160 Two things happened over the last year. We put a 0:15:23.200 --> 0:15:27.200 foreign investment tax that the previous government put in and 0:15:27.280 --> 0:15:31.360 that helped to slow down the market. And the federal 0:15:31.400 --> 0:15:37.040 government changed the mortgage availability rules in January, so that 0:15:37.200 --> 0:15:40.560 also so affected the market. So between the two of them, 0:15:40.800 --> 0:15:43.280 it brought us in for a softer landing, so we 0:15:43.320 --> 0:15:46.200 didn't see any kind of abubble at all. Uh And 0:15:46.280 --> 0:15:51.800 now in our fall economic statement, we just announced that 0:15:51.880 --> 0:15:55.840 we will remove rent control for new developments, so it's 0:15:55.880 --> 0:15:59.600 opened up. The business community is now ready to invest 0:15:59.680 --> 0:16:02.800 because they can build and know that they've got a growing, 0:16:03.200 --> 0:16:06.000 a growing return. A rent control will stay for those 0:16:06.240 --> 0:16:12.240 existing owners are renters. Now, as I mentioned, Ontario is 0:16:12.320 --> 0:16:17.120 Canada's leading manufacturing province, accounting for more than fifty of 0:16:17.200 --> 0:16:21.760 total manufacturing shipments. That means a relationship with the state 0:16:21.800 --> 0:16:26.640 of Michigan. Can you tell us what trade confrontations and 0:16:26.680 --> 0:16:31.320 conciliations between the United States and Canada have meant for 0:16:31.520 --> 0:16:33.880 the province of Ontario. Well, I can tell you that 0:16:33.920 --> 0:16:38.440 our Premier, Doug Ford has been talking to all of 0:16:38.480 --> 0:16:41.760 the governors from the nineteen states where we are number 0:16:41.800 --> 0:16:44.280 one trading partner, and I think it's six states where 0:16:44.280 --> 0:16:46.560 we're the number two trading partner or nine other states 0:16:46.600 --> 0:16:49.880 where the number two trading partner. Uh. And you'll find 0:16:49.960 --> 0:16:53.040 a premier Ford. He's a business person and he's he's 0:16:53.080 --> 0:16:55.280 not an idealogue. It's not about being on the right 0:16:55.400 --> 0:16:57.680 or the left to him, It's all about pragmatism. If 0:16:57.680 --> 0:17:00.800 it's the right thing to do, let's do it now. Manufacturing, 0:17:00.840 --> 0:17:05.000 although we do account for, is really a twelve percent 0:17:05.320 --> 0:17:11.000 of our economy, and Ontario fintech and financial services are nine. Agriculture, 0:17:11.000 --> 0:17:15.080 while it's a smaller percentage, is still a huge employer, 0:17:15.119 --> 0:17:17.480 one of the largest employers in the province as well. 0:17:17.680 --> 0:17:21.560 So we have a truly a diversified economy right across 0:17:21.720 --> 0:17:24.320 the province of Ontario. We we do about three billion 0:17:24.359 --> 0:17:28.480 dollars worth of movies are filmed in Toronto and further north. 0:17:28.520 --> 0:17:30.880 I live about four hours north of Toronto, where there's 0:17:30.880 --> 0:17:33.840 two feet of snow today. Uh. And we do a 0:17:33.840 --> 0:17:38.120 lot of Hallmark Christmas movies that are filmed, a tremendous 0:17:38.119 --> 0:17:40.960 amount of film activity as well. I'm just wondering also 0:17:41.119 --> 0:17:46.680 about cannabis legalization in in Canada. I'm just wondering whether 0:17:46.760 --> 0:17:50.760 you've accounted for much higher revenues in taxes or anything 0:17:50.800 --> 0:17:54.199 else from the legalization of cannabis. You know, that's an 0:17:54.200 --> 0:17:58.080 excellent question. Uh. And what we decided to do uh 0:17:58.720 --> 0:18:01.880 that so that this is non at tax revenue play 0:18:01.960 --> 0:18:04.080 for the Province of Ontario. It's unlike the other we 0:18:04.160 --> 0:18:06.960 call them at home syntax is alcohol and tobacco that 0:18:07.080 --> 0:18:10.040 generally see an increase at budget in the budgets. This 0:18:10.080 --> 0:18:12.880 is not going to happen. This is all about Uh. 0:18:13.040 --> 0:18:16.159 This was federally regulated, so it's a law that was 0:18:16.200 --> 0:18:18.879 brought in by the federal government right across Canada. We 0:18:19.000 --> 0:18:23.080 opted to make our price point low so that we 0:18:23.119 --> 0:18:25.480 can First of all, it's all about the safety of 0:18:25.480 --> 0:18:29.960 our children, the safety on our roads, and crushing the 0:18:30.080 --> 0:18:32.840 illegal market. So that's really where we are. So it's 0:18:32.840 --> 0:18:34.880 not about a financial play. We're not going to make 0:18:34.880 --> 0:18:36.600 money at this in the first year of the second 0:18:36.640 --> 0:18:39.679 year at all. We're returning forty million dollars to the 0:18:39.760 --> 0:18:45.119 municipalities to help them with with the rollout of cannabis. 0:18:45.400 --> 0:18:48.000 Just real quick twenty seconds here, I'm wondering how much 0:18:48.080 --> 0:18:51.720 Toronto and the interior region has benefited from the crackdown 0:18:51.720 --> 0:18:54.840 on immigration in the United States. Uh. Given the fact 0:18:54.840 --> 0:18:57.560 that that you've been much more open. It's quite interesting. 0:18:57.640 --> 0:19:00.520 We we were at about one point eight percent of growth, 0:19:00.720 --> 0:19:04.040 will probably hit about one point five percent this year. 0:19:04.280 --> 0:19:06.919 So we've had a huge influx. More than two hundred 0:19:06.920 --> 0:19:10.360 thousand people have come into the Province of Ontario and uh, 0:19:10.640 --> 0:19:14.040 this we're we're encouraging this to happen. We we look 0:19:14.080 --> 0:19:18.119 forward to it and they're absolutely Uh the employees of 0:19:18.119 --> 0:19:20.600 the future. Thank you so much for being with us. 0:19:20.960 --> 0:19:25.920 That is Ontario Finance Minister, the honorable Vic Fidelli, talking 0:19:26.000 --> 0:19:32.560 about all things Canada as well as Ontario. Him. When 0:19:32.600 --> 0:19:36.040 I was fourteen, I did some things. I was into 0:19:36.960 --> 0:19:41.000 art and dance. I was not building robotic arms in 0:19:41.080 --> 0:19:45.800 my bedroom. But our next guest that this, our nice 0:19:45.840 --> 0:19:48.840 guest went beyond Lego sets Eastern Lasha Pale joins is 0:19:48.880 --> 0:19:52.520 now he's founder of Unlimited Tomorrow, which is based in Colorado, 0:19:52.560 --> 0:19:55.320 but he joins us here in our eleven three oh studios. 0:19:55.400 --> 0:19:58.760 So you're twenty three and you made your first prosthetic 0:19:58.960 --> 0:20:03.480 arm when you were fourteen. What inspired you to do that? Yeah, 0:20:03.640 --> 0:20:05.080 So I grew up in a very small town in 0:20:05.119 --> 0:20:08.760 Colorado named Mankus. Uh. There was a population about people. 0:20:08.800 --> 0:20:11.080 My graduating class in high school was twenty three kids, 0:20:11.320 --> 0:20:13.919 so you can imagine it's very limited resources. And that 0:20:14.040 --> 0:20:17.560 really made me excited, and I started learning outside my school, 0:20:17.720 --> 0:20:21.480 would run home, take things apart. I love curiosity and tinkering, 0:20:21.840 --> 0:20:23.080 and I came up with an idea to make a 0:20:23.200 --> 0:20:27.160 robotic hand and piece together legos. Fishing line plastic supports 0:20:27.280 --> 0:20:29.760 legos to piece it all together and turn this idea 0:20:29.760 --> 0:20:32.119 into reality. UM. A couple of years after that, I 0:20:32.119 --> 0:20:34.840 started advancing these designs using three D printing, making four 0:20:34.920 --> 0:20:37.119 robotic arms, and I met a small girl out of 0:20:37.119 --> 0:20:39.720 science for that had an eighty dollar prosthetic limb that 0:20:39.720 --> 0:20:41.440 I was simpler than what I was creating for a 0:20:41.480 --> 0:20:43.720 couple hundred dollars out of my bedroom, and that was 0:20:43.760 --> 0:20:47.880 my AHA moment. Tell us about how you met Tony Robbins, 0:20:47.920 --> 0:20:51.000 who was a founding partner of your company, and how 0:20:51.000 --> 0:20:57.320 did you demonstrate the ability to custom make prosthetics based 0:20:57.359 --> 0:21:01.000 on three D scan technology. Well, it was it was 0:21:01.040 --> 0:21:03.239 a busy year. When I was seventeen years old. I 0:21:03.280 --> 0:21:06.040 was I was doing an internship at NASA. I started 0:21:06.160 --> 0:21:08.960 creating these these arms and started getting national media attention. 0:21:09.240 --> 0:21:11.960 I was traveling around the world doing talks and speeches 0:21:12.359 --> 0:21:13.919 and I was invited to give a TED talk in 0:21:14.000 --> 0:21:16.800 Denver and that was a really big milestone for me. 0:21:16.880 --> 0:21:19.520 That's actually how Tony Robbins he he saw this TED talk. 0:21:19.560 --> 0:21:21.560 He gave me a call one day pretty much and said, 0:21:21.800 --> 0:21:24.120 I hope people around the world psychologically and I would 0:21:24.119 --> 0:21:26.760 love to help them physically. Let's partner together to make 0:21:26.760 --> 0:21:28.480 this a reality. And this is when I was just 0:21:28.520 --> 0:21:30.800 about to graduate from high school. I was seventeen years old. 0:21:31.040 --> 0:21:33.040 Right when I turned eighteen, we partnered together to form 0:21:33.080 --> 0:21:36.280 Unlimited Tomorrow and since then we've been refining the technology. 0:21:36.320 --> 0:21:38.679 This was almost four years ago now and UH and 0:21:38.720 --> 0:21:41.439 we just recently about two years ago, we partnered with 0:21:41.480 --> 0:21:44.880 Microsoft and they helped create the first procect device for 0:21:45.000 --> 0:21:48.440 a small tenual grow named Momo, and that really set 0:21:48.440 --> 0:21:50.200 the bar for us. So we sent scanners down to 0:21:50.240 --> 0:21:52.760 her in Florida. We scanned her arm that she's missing 0:21:53.200 --> 0:21:55.880 and her other arm, her full arm, and we used 0:21:55.880 --> 0:21:59.240 that data to make him your image. We included fingernails, 0:21:59.240 --> 0:22:02.480 custom skin to own. UH incorporated a lot of technology 0:22:02.480 --> 0:22:05.680 into this and it really highlights the enabling technology, which 0:22:05.720 --> 0:22:08.399 is three D printing for this technology, is it. I 0:22:08.520 --> 0:22:11.600 just want to know a little bit more about Unlimited Tomorrow, 0:22:11.720 --> 0:22:15.600 which can create these advanced prosthetics that even match the 0:22:15.640 --> 0:22:20.040 skin tone for about of the cost of the available 0:22:20.280 --> 0:22:25.040 prosthetics that are comfortable out there. Are you designing the prosthetics, 0:22:25.080 --> 0:22:28.240 do you work with designers? What sort of uh, the 0:22:28.320 --> 0:22:31.520 sort of function here that Unlimited Tomorrow place. Yeah, that's 0:22:31.520 --> 0:22:34.640 a great question. When I first started looking into this industry, 0:22:34.680 --> 0:22:37.080 there's I saw there's a lot of problems there. It's 0:22:37.160 --> 0:22:39.920 kind of a scattered uh kind of market where prosthetic 0:22:39.960 --> 0:22:44.920 manufactures up charges Celtic clinicians, they then sell to the amputee. 0:22:45.000 --> 0:22:47.240 It's an insurance game and into the end user. It's 0:22:47.240 --> 0:22:50.360 a really inefficient, expensive process that can take months on end. 0:22:50.680 --> 0:22:52.680 And so we really designed this from the ground up. 0:22:52.920 --> 0:22:56.200 We design every aspect from the software to custom electronics, 0:22:56.200 --> 0:22:58.359 all the mechanics. You do all that in house. And 0:22:58.400 --> 0:23:00.480 we've also introduced a new business model which is going 0:23:00.480 --> 0:23:02.719 directly to the consumer. And so we cut out all 0:23:02.720 --> 0:23:05.200 these middlemen that caused a lot of inefficiencies and cost 0:23:05.520 --> 0:23:07.800