WEBVTT - Ev Ehrlich on How Presidential Election Will Impact Tech(Audio)

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<v Speaker 1>Broadcasting live to New York, Bloomberg eleventh LEO to Washington,

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<v Speaker 1>d C, Bloomber to Boston, Bloomberg twelve hundred to San Francisco,

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<v Speaker 1>Bloomberg nine to the countries Channel one nine and around

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<v Speaker 1>the globe the Bloomberg Radio Plus AB and Bloomberg dot Com.

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<v Speaker 1>This is Taking Stock. Coming up on Taking Stock research,

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<v Speaker 1>science and technology and politics. How will a new occupant

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<v Speaker 1>of the White House influence US technology policy, for example

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<v Speaker 1>net neutrality. We'll have more coming up, but right now,

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<v Speaker 1>let's go to Charlie Pellett in the Bloomberg newsroom for

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<v Speaker 1>Bloomberg Business Flash, and I thank you pim Fox. We've

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<v Speaker 1>got the DAL, the SMP NEZ DAC all declining on

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<v Speaker 1>this Friday, and we're brought to you by Sector Spider

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<v Speaker 1>six Sector et F stock slipping and light trading falling

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<v Speaker 1>for the first time in six days. Stocks are on

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<v Speaker 1>track for all winning week. Investors are weighing the potential

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<v Speaker 1>for further games, with shares near records and corporate earnings

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<v Speaker 1>projected to drop for a fifth quarter. City Groups said

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<v Speaker 1>second quarter profit fell seventeen percent on lower revenue from

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<v Speaker 1>consumer banking, beating analysts estimates as fixed income trading rebounded

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<v Speaker 1>and the firm dedicated less money to soured loans. City

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<v Speaker 1>Group shares lower today by six tenths of one percent.

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<v Speaker 1>Jim Senegal is senior equity strategist at morning Star. He

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<v Speaker 1>was interviewed this morning on Bloomberg Television. City navigated the

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<v Speaker 1>quarter very well on the trading side of things, although

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<v Speaker 1>investment banking fee type revenue was down. Consumer credit performed

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<v Speaker 1>very well around the world, in the US, in Asia,

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<v Speaker 1>in Latin America, credit quality is actually improving to some extent,

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<v Speaker 1>and for City at least, the rate environment has not

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<v Speaker 1>been as big of a headwind as we might have expected.

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<v Speaker 1>Also reporting today, Wells Fargo IT said second quarter profit

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<v Speaker 1>fell two point eight percent as more energy loans soured.

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<v Speaker 1>Wells Fargo down two point nine percent. A US Bankorp,

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<v Speaker 1>which is the nation's largest regional lender, posted records second

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<v Speaker 1>quarter profit. The beat analyss estimates his shares up now

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<v Speaker 1>by one point two percent. The now little change down

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<v Speaker 1>a point, SMP down four a drop there of two

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<v Speaker 1>tents of one percent, and as stack down seven a

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<v Speaker 1>drop of two tenths of one percent, gold down four dollars,

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<v Speaker 1>the ounce, the thirty eight a drop of three tenths

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<v Speaker 1>of one percent, and crude oil West Texas Intermediate up

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<v Speaker 1>twenty two cents a barrel up five tenths of one

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<v Speaker 1>percent to thirty two on Wall Street Now will look

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<v Speaker 1>at other stories making news. Thank you Charlie from the

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<v Speaker 1>Bloomberg News Room. I'm June Grosso. At least eighty four

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<v Speaker 1>people are dead on a French riviera in Nice after

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<v Speaker 1>an attack or in a truck drove into crowd celebrating

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<v Speaker 1>Bastile Day. Matt Olson, former director of the National counter

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<v Speaker 1>Terrorism Center, says it's not clear if the attack or

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<v Speaker 1>had help from accomplices. We can expect perhaps that the

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<v Speaker 1>pace of these types of attacks, whether they're lone wolf

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<v Speaker 1>attacks or or small numbers of people carrying off these

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<v Speaker 1>attacks in the West, may well increase, and they're very

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<v Speaker 1>difficult to defend against. Secretary of State John Kerry met

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<v Speaker 1>with his Russian counterpart in Moscow. Today carries in Russia

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<v Speaker 1>to discuss Syria another hot spots. Now he's joining the

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<v Speaker 1>rest of the world and reacting to the devastating truck massacre.

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<v Speaker 1>Last night. Speaking to Russian foreign ministers, Sergei Lavrov carry

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<v Speaker 1>addresses the recent responses to terrorism. The problem is that

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<v Speaker 1>if you and I and other foreign ministers and leaders

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<v Speaker 1>of countries are now doing this almost on a weekly basis.

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<v Speaker 1>President Obama will speak about the nice attacks at three

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<v Speaker 1>ten Eastern time. You can hear it live on Bloomberg Radio.

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<v Speaker 1>The White House predicted today that the government's budget deficit

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<v Speaker 1>for the soon to end fiscal year will hit six

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<v Speaker 1>hundred billion dollars. That's an increase of one hundred sixty

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<v Speaker 1>two billion dollars over last year's tally. It reverses a

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<v Speaker 1>steady trend of large but improving deficits on President Barack

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<v Speaker 1>Obama's watch. It's cost New Jersey taxpayers eight point two

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<v Speaker 1>million dollars for Governor Chris Christie's private attorneys who are

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<v Speaker 1>handling the fallout from the George Washington Bridge lane closing case.

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<v Speaker 1>Global News twenty four hours a day, powered by more

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<v Speaker 1>than twenty six hundred journalists and analysts and more than

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<v Speaker 1>one hundred twenty countries. I'm June Glosso. This is Bloomberg Charlie,

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<v Speaker 1>and we thank you what again recapping equities lower SMP

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<v Speaker 1>down four to nine, a drop of two tenths of

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<v Speaker 1>one percent. I'm Charlie Pellet and dance a Bloomberg business flash.

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<v Speaker 1>This is taking stock with Kathleen Hayes and Pim Fox

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<v Speaker 1>on Bloomberg Radio. It used to be a chicken in

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<v Speaker 1>every pot and a car in every garage. Now it

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<v Speaker 1>is high speed internet in every home. Technology policy courtesy

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<v Speaker 1>of the candidates running for president of the United States.

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<v Speaker 1>Ev Erlick is the former under Secretary of Commerce and

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<v Speaker 1>the Clinton administration. Is currently the president of E s

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<v Speaker 1>C Company, and he joins us from Washington, d C.

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<v Speaker 1>Home to Bloomberg one and one oh five point seven

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<v Speaker 1>h D two. Thank you very much for being with us.

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<v Speaker 1>Tell us about the policies that are being put forth

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<v Speaker 1>by the candidates. Let's begin with the Hillary Clinton and

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<v Speaker 1>how important it is to put together a technology policy

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<v Speaker 1>for the United States. Well, first, that's the zero's order

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<v Speaker 1>point that there has to be a technology policy. That

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<v Speaker 1>this isn't something that just happens and springs out of

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<v Speaker 1>the brow of zeus. Uh. The high tech sector is

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<v Speaker 1>one in which the public and private sectors have played

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<v Speaker 1>defined roles that have inter related throughout their history, and

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<v Speaker 1>I think that the sector is entitled to a vision

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<v Speaker 1>from any leading candidate as to how they imagine that.

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<v Speaker 1>Proceeding from from Hillary Clinton, we've seen a fairly detailed one,

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<v Speaker 1>uh and UH that's admirable in the sense that it

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<v Speaker 1>understands what all the inter relationships are that it covers,

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<v Speaker 1>not just incentives for expanding internet and internet infrastructure, such

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<v Speaker 1>support for R and D, support for STEM and other

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<v Speaker 1>types of education, action against patent trolls. It understands these

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<v Speaker 1>inter relationships. On the other side of the fence, we

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<v Speaker 1>really haven't heard anything, uh from Donald Trump, and I

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<v Speaker 1>think that speaks to basic worldviews about how the economy

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<v Speaker 1>works that are also of great concern to the tech sector.

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<v Speaker 1>Let's focus on some of the details of Hillary Clinton's plan,

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<v Speaker 1>for example, expansion of five G mobile data and also

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<v Speaker 1>making inexpensive WiFi available at airports and train stations. That's

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<v Speaker 1>that's so important. Uh. Consumers have demonstrated at every turn

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<v Speaker 1>in modern economic history that they value mobility and flexibility,

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<v Speaker 1>and the future of broadband Internet is going to be

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<v Speaker 1>mobile and not just the Internet of Things. But much

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<v Speaker 1>much as people were willing to accept some modest sacrifice

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<v Speaker 1>of quality to get a mobile as supposed to a

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<v Speaker 1>landline phone. Uh, they're going to do that for connectivity

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<v Speaker 1>without the need to accept in the long term any

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<v Speaker 1>diminished capabilities. Uh. So America is the global leader, unrivaled

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<v Speaker 1>in mobile telephony and in mobile signal carriage. UH. And

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<v Speaker 1>the five V program that's just come out of the FCC,

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<v Speaker 1>and that Mrs Clinton appears to endorse and be on

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<v Speaker 1>the same page with, is very important. Now have you

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<v Speaker 1>You mentioned just a moment ago the issues related to education,

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<v Speaker 1>and one of the Hillary Clinton's proposals is to attach

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<v Speaker 1>a green card to the diplomas of foreign born students

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<v Speaker 1>who earn STEM degrees. Tell us about that. Uh, that's

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<v Speaker 1>a very interesting piece of thinking. Uh. And I think

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<v Speaker 1>it speaks to two things. One is the importance of

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<v Speaker 1>STEM education and the other is the recognition that the

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<v Speaker 1>US is a magnet for the world's finest minds. I

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<v Speaker 1>read in a letter published by tech secutar executives yesterday

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<v Speaker 1>that of the startups that occur in the United States

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<v Speaker 1>are either first or second generation immigrant families. And if

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<v Speaker 1>you can continue that slow of talent to the US,

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<v Speaker 1>then you're taking very important steps to sustain the innovation

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<v Speaker 1>at the American economy is known for now. Based on

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<v Speaker 1>your experience in Washington as a former under secretary for

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<v Speaker 1>the Commerce at the Clinton administration, can you speak to

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<v Speaker 1>whether Congress will support any of these proposals would actually

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<v Speaker 1>other legislation and money. Uh. The situation in tech has

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<v Speaker 1>historically been less partisan than in many other areas. The

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<v Speaker 1>the big banks of the modern Internet was Telecom Act,

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<v Speaker 1>which was really a bipartisan piece of legislation. UH. And

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<v Speaker 1>in some ways uh one uh, one side of the

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<v Speaker 1>debate or the other might make headway, like for example,

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<v Speaker 1>Title Too. But the world is going to try to

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<v Speaker 1>move on past that so long as it's not implemented

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<v Speaker 1>in a brutally heavy handed way. So I think there

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<v Speaker 1>is the prospect there is some partisan divide about whether

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<v Speaker 1>or not we should have anchor institutions and lifeline and

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<v Speaker 1>e erate UH. And what strikes me as remarkable is

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<v Speaker 1>that the members of Congress who opposed those programs have

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<v Speaker 1>districts that were probably electrified by t V A and

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<v Speaker 1>that received telephony because of efforts to promote rural telephones.

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<v Speaker 1>I want to thank you very much for spending time

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<v Speaker 1>with us and illuminating this issue. Ev Erlick is a

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<v Speaker 1>former Undersecretary of Commerce for the Clinton administration, currently the

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<v Speaker 1>president of E s C. Company there based in Washington,

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<v Speaker 1>d C. Of course, home to Bloomberg and one oh

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<v Speaker 1>five point seven h D two. You're listening to taking Stock.

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<v Speaker 1>I'm pim Fox coming up real. Were taking a look

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<v Speaker 1>at studies in violent extremism, how people obtain videos that

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<v Speaker 1>suggest various ways of attack, including running people over a

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<v Speaker 1>king to yesterday's Bastill Day tragedy in Niece, France, which

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<v Speaker 1>four people are confirmed dead. You're listening to taking Stock.

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