WEBVTT - Programmatic Advertising Is the Future, Trade Desk CEO Says 0:00:05.800 --> 0:00:08.720 Welcome to the Bloomberg p m L Podcast. I'm pim Fox. 0:00:08.760 --> 0:00:11.560 Along with my co host Lisa Abramowitz. Each day we 0:00:11.640 --> 0:00:15.120 bring you the most important, noteworthy, and useful interviews for 0:00:15.200 --> 0:00:17.840 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 --> 0:00:32.160 Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. Well, 0:00:32.240 --> 0:00:35.720 one investment that is working today happens to be Trade 0:00:35.720 --> 0:00:38.040 Desk that shares are hired by about two and a 0:00:38.120 --> 0:00:41.839 half percent. They gained twelve percent on the open and 0:00:42.560 --> 0:00:47.440 Trade Desk is an online auction platform for digital advertising. 0:00:47.680 --> 0:00:49.960 Here to tell us about it is the chief executive, 0:00:50.120 --> 0:00:53.600 Jeff Green. Jeff, thanks very much for being with us. Oh, 0:00:53.600 --> 0:00:56.200 thank you. Excited to be here all right. Well, congratulations 0:00:56.200 --> 0:00:59.360 about today's earnings report. The market seems to be loving it. 0:00:59.360 --> 0:01:02.040 It's up about Your stock is up about two after 0:01:02.120 --> 0:01:04.759 being up more than ten percent in early trading. How 0:01:04.760 --> 0:01:07.240 do you describe your company to people that are not 0:01:07.360 --> 0:01:13.160 familiar with the inner workings of internet advertising? So we 0:01:13.920 --> 0:01:19.760 essentially help advertisers and especially their agencies by everything except 0:01:19.880 --> 0:01:23.000 for Google and Facebook. So there's this giant Internet that 0:01:23.160 --> 0:01:28.319 powers TV and radio and things like Spotify that also 0:01:28.400 --> 0:01:30.880 have ads on them. Uh. And so instead of just 0:01:30.920 --> 0:01:33.520 trying to monetize Google and Facebook, we're helping them get 0:01:33.520 --> 0:01:35.600 ads on the rest of the Internet. How do you 0:01:35.640 --> 0:01:40.000 help them get those ads? Well, so what what they 0:01:40.080 --> 0:01:42.560 do is they'll come up with the creative but UH, 0:01:42.760 --> 0:01:46.720 figuring out like what is Yahoo worth to them compared 0:01:46.760 --> 0:01:49.320 to what is Spotify worth to them compared to what 0:01:49.520 --> 0:01:53.559 is CBS dot com worth to them is a really 0:01:53.600 --> 0:01:56.600 hard assignment. So we give them technology that helps them 0:01:56.640 --> 0:01:59.320 figure out where they should spend and what they should 0:01:59.360 --> 0:02:01.680 pay and how they should allocate. Now you have a 0:02:02.200 --> 0:02:06.280 you're a veteran of the advertising industry. You sold one company, 0:02:06.320 --> 0:02:10.160 I believe to Microsoft. What the what propelled you to 0:02:10.160 --> 0:02:14.560 to start trade desk and how is it different? Yeah? 0:02:14.600 --> 0:02:18.359 So the last business that I created is uh was 0:02:18.400 --> 0:02:20.440 an ad exchange. So you can think of that like 0:02:20.480 --> 0:02:23.760 the New York Stock Exchange. UM. So, we we built 0:02:23.800 --> 0:02:27.680 this exchange and once it became inevitable that ads would 0:02:27.680 --> 0:02:32.240 actually be traded through these exchanges, which, as your listeners, no, 0:02:32.720 --> 0:02:36.240 exchanges are a great great way to get price discovery 0:02:36.240 --> 0:02:41.480 and liquidity. Once that model became inevitable. What we, instead 0:02:41.480 --> 0:02:44.880 of being exchange wanted to build was a platform to 0:02:44.880 --> 0:02:48.040 help people participate on the exchanges. So let's give them 0:02:48.080 --> 0:02:51.200 the text so that they know, uh, what to buy, 0:02:51.280 --> 0:02:54.160 where to buy it, and we can make more money 0:02:54.200 --> 0:02:56.440 and add more value that well, we're gonna yeah, that's 0:02:56.440 --> 0:02:57.880 where I want to go with the with the money 0:02:58.080 --> 0:03:01.200 for a second, because there is a range. For example, 0:03:01.720 --> 0:03:05.400 I understand, let's say you have inventor advertising inventory that 0:03:05.480 --> 0:03:12.080 costs fifteen dollars per CPU, right, per thousand impressions. But 0:03:12.160 --> 0:03:14.960 let's say you're sold out of that in your at inventory, 0:03:14.960 --> 0:03:19.600 what would you do? Well, So it's a really really 0:03:19.680 --> 0:03:23.160 big internet, right, So there, Uh, if if you didn't 0:03:23.160 --> 0:03:28.359 have a video available on on Yahoo, um, there will 0:03:28.400 --> 0:03:30.520 be one on a o L. There will be one 0:03:30.520 --> 0:03:32.880 on somewhere else. And so one thing that is actually 0:03:33.400 --> 0:03:37.920 really works in our favor is that we only help buyers. 0:03:37.960 --> 0:03:41.400 Were just in the business of helping buyers decide what 0:03:41.520 --> 0:03:44.400 to buy. So we're on the buy side, and there's 0:03:44.400 --> 0:03:46.560 a bunch of other companies that focus on the cell side. 0:03:47.440 --> 0:03:52.400 But because and unfortunately all of us as consumers know this, uh, 0:03:52.400 --> 0:03:54.840 it is actually not that hard to create more supply 0:03:55.240 --> 0:03:57.560 of ads on the internet. As soon as you get 0:03:57.560 --> 0:04:00.120 close to sold out, you can just throw another on 0:04:00.160 --> 0:04:04.040 the page, throw another thirty second spot in a commercial break. 0:04:04.640 --> 0:04:08.240 And so because of that phenomenon, we've predicted that it 0:04:08.280 --> 0:04:11.040 will always be a buyer's market because there will always 0:04:11.080 --> 0:04:14.600 be more supply than there is demand. And as a result, 0:04:14.680 --> 0:04:17.320 that helps our business always sort of be in the 0:04:17.360 --> 0:04:21.679 power position. And does that also mean that targeted ads 0:04:21.720 --> 0:04:30.800 and programmatic UH content is worth more too specific advertisers, Oh, 0:04:30.839 --> 0:04:33.800 without a doubt in fact, that that's the future. So 0:04:33.880 --> 0:04:36.800 in the future, there will be fewer ads, they will 0:04:36.839 --> 0:04:40.080 be way more relevant. Consumers won't hate them as much 0:04:40.160 --> 0:04:43.280 because they'll all be something that they're interested in. That 0:04:43.320 --> 0:04:47.080 means that advertisers waste less money. It means that publishers 0:04:47.160 --> 0:04:51.080 make more money. UH. Where the advertising industry is heading 0:04:51.120 --> 0:04:55.039 and frankly where we're taking it is a much better 0:04:55.120 --> 0:04:58.960 world than the one that we have today. But with 0:04:59.040 --> 0:05:01.920 that comes higher ices for for my clients, which will 0:05:02.120 --> 0:05:06.080 gladly pay because it's more effective than the increased costs. 0:05:06.680 --> 0:05:09.760 Are there any misconcert maybe what's the largest misconception that 0:05:09.839 --> 0:05:12.800 people have about the way the online ad business works, 0:05:12.800 --> 0:05:17.839 and particularly about how the referrals based on your viewing 0:05:18.000 --> 0:05:22.320 pattern or your activity the suggested stories. Is there something 0:05:22.360 --> 0:05:26.320 that people really need to know behind the scenes. Um so, 0:05:26.640 --> 0:05:29.240 I think the biggest thing is just that Google and 0:05:29.720 --> 0:05:33.279 Facebook get a lot of credit for being amazing companies. 0:05:33.360 --> 0:05:36.440 I do think they're unbelievable companies. I mean, Facebook has 0:05:36.440 --> 0:05:39.240 done a better job of building advertising on ramps. They 0:05:39.240 --> 0:05:44.160 power millions of advertisers. Google has done the same thing. 0:05:44.320 --> 0:05:46.520 In fact, I've said many times I think Google is 0:05:46.520 --> 0:05:48.839 the greatest invention of our lifetime. It's just changed the 0:05:48.839 --> 0:05:52.919 way information is distributed. But both of those companies primarily 0:05:53.000 --> 0:05:57.240 focus on monetizing their own properties. Right. They monetize Facebook 0:05:57.279 --> 0:06:00.760 dot com, Google dot com, and YouTube dot home. And 0:06:00.839 --> 0:06:03.599 so what many people don't know or or haven't really 0:06:03.600 --> 0:06:06.040 thought about is how does the rest of the Internet 0:06:06.080 --> 0:06:09.320 get monetized and where we come in as we just say, hey, 0:06:09.320 --> 0:06:12.919 we're an objective player that doesn't own any media. We 0:06:12.960 --> 0:06:16.000 don't own, right, You're just working on behalf of your 0:06:16.400 --> 0:06:18.560 of your clients to place the ads where they where 0:06:18.560 --> 0:06:21.680 they need to be. Thanks, very interesting, Thank you very much. 0:06:21.720 --> 0:06:24.520 Jeff Green is the chief executive of the trade desk. 0:06:24.839 --> 0:06:27.159 You can follow them on the symbolist t t D. 0:06:27.320 --> 0:06:31.160 The shares of Facebook are up more than so far 0:06:31.360 --> 0:06:46.200 this well, the shares are j C. Penny are down 0:06:46.200 --> 0:06:50.240 more than sixteen percent this morning. And uh, well that 0:06:50.279 --> 0:06:52.279 should tell you almost everything you need to know about 0:06:52.320 --> 0:06:54.640 the industry. Craig Johnson, though, is here. He's the president 0:06:54.680 --> 0:06:58.080 of Customer Growth Partners based in New Canaan, Connecticut. And Craig, 0:06:58.080 --> 0:07:00.280 all right, so we know that j C. Penny is down. 0:07:01.279 --> 0:07:04.359 We've heard the news from Macy's, from Coals, from Dillard's. 0:07:04.440 --> 0:07:08.040 List goes on, are we at a bottom? Well, we 0:07:08.360 --> 0:07:10.760 do think the sector's bottoming. PIM is nice as to 0:07:10.800 --> 0:07:14.080 catch up, by the way, and so, um, here's the 0:07:14.120 --> 0:07:18.520 sector that for years has been bleeding market share. Uh. 0:07:18.600 --> 0:07:21.480 This year sales are down about five year of a 0:07:21.560 --> 0:07:25.680 year to date um uh. And that is while the 0:07:25.720 --> 0:07:28.720 retail sector overall is growing about three and a half 0:07:28.760 --> 0:07:32.360 maybe four. So you do the math. That's when you're 0:07:32.360 --> 0:07:36.160 growing slower than the market, you're going to be losing 0:07:36.200 --> 0:07:41.440 market share. Um. And so we think, however, because many 0:07:41.480 --> 0:07:45.080 of the stores are taking steps to reduce cost and 0:07:45.160 --> 0:07:48.800 to shrink their square footage, footprint. Um, they're able to 0:07:48.840 --> 0:07:52.400 get cost and sales more in line. And when you 0:07:52.480 --> 0:07:55.679 match up supply demand, uh, that is the first step 0:07:55.720 --> 0:07:58.480 to bottoming. And then you've got to shrink first and 0:07:58.480 --> 0:08:00.920 then grow later. Who do you believe is doing the 0:08:00.920 --> 0:08:04.680 best job right now? You you you listen, you know, 0:08:04.720 --> 0:08:07.880 four or five papers companients ago, But in this sector, 0:08:08.320 --> 0:08:12.040 Nordstrom continues to set the pace. Now. The one thing 0:08:12.080 --> 0:08:15.120 they do share with all the other players, whether J. C. 0:08:15.280 --> 0:08:20.240 Penney or Macy's or whoever, is that store only comps 0:08:20.280 --> 0:08:23.280 from the full line, the full price Nords and sources 0:08:23.280 --> 0:08:28.000 about those are still comping negative, slightly negative in nordstrom sake. 0:08:28.720 --> 0:08:31.520 Tough to get away from that. But what they've done 0:08:31.680 --> 0:08:35.240 is Nordstrom dot Com, the Rack, Nords from Rack, the 0:08:35.320 --> 0:08:40.320 Rack dot com outlook, et cetera. They're different portals of 0:08:40.400 --> 0:08:44.960 reaching the customer are all otherwise positive and so that's 0:08:44.960 --> 0:08:47.200 why they are able to pull together, you know, pretty 0:08:47.200 --> 0:08:52.360 solid positive overall comp at Nords from and you know, 0:08:52.440 --> 0:08:55.840 gave pretty positive signals relative to going forward. All right, 0:08:55.880 --> 0:09:00.800 So alright, Nordstrom maybe an example of elite in how 0:09:00.840 --> 0:09:05.160 to fix things? Are they also part of this mall. 0:09:05.320 --> 0:09:07.800 This trend in what's going on in malls because you 0:09:07.840 --> 0:09:09.800 hear about all the mall is dead and so on, 0:09:09.920 --> 0:09:12.920 but hasn't traffic kind of come back to the mall. Well, 0:09:13.559 --> 0:09:17.840 that's exactly right, that's what we're seeing. Um Uh. The 0:09:17.880 --> 0:09:21.000 mall traffic has been has been declining for you know, 0:09:21.040 --> 0:09:24.959 a good couple of years now, and this year until 0:09:25.480 --> 0:09:27.720 you know, until about the fourth of July was down 0:09:27.760 --> 0:09:31.640 about six percent by us maybe six seven uh for 0:09:31.640 --> 0:09:35.120 for traditional malls. Uh. What we have seen is that 0:09:35.120 --> 0:09:38.480 that six percent hasn't inflected positive It's not certainly plaus 0:09:38.520 --> 0:09:41.199 six percent, but instead it's gone throughout minus six to 0:09:41.200 --> 0:09:45.080 about minus three as of July. So again we have 0:09:45.200 --> 0:09:48.240 to make sure that's sustained over time. But it's some 0:09:48.360 --> 0:09:51.199 of the best traffic year of year traffic that we've seen, 0:09:51.800 --> 0:09:54.680 um uh, you know, in in going on a year. 0:09:54.760 --> 0:09:57.480 So it's it's it's it's a positive sign. But by 0:09:57.480 --> 0:09:59.880 no means or malls out of the woods yet. And 0:10:00.080 --> 0:10:02.560 back to school, how is that going to play out? Well, 0:10:02.960 --> 0:10:04.520 we're right at the peak of the back to school 0:10:04.559 --> 0:10:08.200 season now start in July and it peaks in in 0:10:08.200 --> 0:10:11.720 in early mid August. Uh, and so far that's actually 0:10:11.760 --> 0:10:14.080 shaping up pretty well, as I'm sure you know, for 0:10:14.120 --> 0:10:17.600 department stores, it's a key uh selling season, you know, 0:10:17.679 --> 0:10:22.040 number two behind um um uh, you know, behind Holiday. 0:10:22.880 --> 0:10:26.160 But for the specialty stores, uh and then the big 0:10:26.200 --> 0:10:28.680 box stores which as such as you know Walmart, you know, 0:10:28.720 --> 0:10:31.160 Target and so forth, this is a very big season. 0:10:31.400 --> 0:10:33.520 And so far, you know, it's still you know, we're 0:10:33.559 --> 0:10:36.480 just not quite the halfway point of it, but it's uh, 0:10:36.520 --> 0:10:38.400 it seems to be on track. It seems to be 0:10:38.440 --> 0:10:41.280 doing pretty well. Well. How do you expect, I know, 0:10:41.320 --> 0:10:44.160 we're gonna get results Home, the Home Depot, Target, Walmart 0:10:44.240 --> 0:10:46.680 and so on, t j X, H. What what's your 0:10:46.720 --> 0:10:50.319 outlook for those companies? Well, we're the particular companies I 0:10:50.400 --> 0:10:53.520 mentioned we're pretty optimistic on and you know, one of 0:10:53.520 --> 0:10:56.400 the things we say to our clients is that don't 0:10:57.080 --> 0:10:59.880 don't read too much into the overall retail sector from 0:10:59.880 --> 0:11:02.240 the department stores, which are there only one point six 0:11:02.280 --> 0:11:04.840 percent of the market. But you get companies like you know, 0:11:04.880 --> 0:11:09.680 Walmart and and and UH and and Home Depot and 0:11:09.720 --> 0:11:13.240 the Lows and t j X and Ross all reporting 0:11:13.280 --> 0:11:15.280 over the next week or so, and the numbers are 0:11:15.320 --> 0:11:19.320 almost always going to almost gonna be uniformly positive. Um, 0:11:19.360 --> 0:11:22.319 you know, Walmart is slowly coming back to health. It 0:11:22.520 --> 0:11:25.040 may not be the heavy growth days of the early 0:11:25.080 --> 0:11:28.240 two thousand's, but the home improvement guys Home Depot and 0:11:28.320 --> 0:11:31.160 Lows Home Depot particularly, and secondly low As are doing 0:11:31.600 --> 0:11:33.720 quite nicely. And then t J is the whole off 0:11:33.760 --> 0:11:36.720 price sector. And again t J's and Ross both report 0:11:36.800 --> 0:11:40.960 this coming week. Uh, they're both going to have solid numbers, 0:11:41.000 --> 0:11:45.240 and that sector is is gaining as much share as 0:11:45.280 --> 0:11:49.120 the department store is losing in the apparel arena. Well, 0:11:49.160 --> 0:11:51.800 just to give the perspective of Walmart shares, they're up 0:11:51.840 --> 0:11:55.199 sevent so far this year. Craig, you do a lot 0:11:55.200 --> 0:11:58.360 of traveling, You do a lot of looking and talking 0:11:58.360 --> 0:12:01.400 to people around the world about retail. Can you tell 0:12:01.480 --> 0:12:06.280 us about some geographical anecdotal information that maybe we'll highlight 0:12:06.360 --> 0:12:08.760 trends or tell you what is going on? What have 0:12:08.840 --> 0:12:11.560 you seen that has caught your attention? Well, you know, 0:12:11.679 --> 0:12:13.440 and so you know, we have a team of eighteen 0:12:13.520 --> 0:12:15.959 people you know here in the across the US, and 0:12:16.000 --> 0:12:20.120 then you know, one researcher in London, and uh, we're 0:12:20.160 --> 0:12:25.920 seeing an overall retail sector that seems to be um 0:12:25.920 --> 0:12:29.520 coming back into health. It's maybe not back into full 0:12:29.520 --> 0:12:32.600 bloom yet um, but we're seeing some of the best 0:12:32.760 --> 0:12:38.000 uh traffic and sales trends that we had in sometimes 0:12:38.520 --> 0:12:42.360 the In the US, the growth is relatively balanced. There's 0:12:42.360 --> 0:12:46.640 maybe a little bit stronger growth in the on the 0:12:46.679 --> 0:12:50.400 west coast, number one, and in the the whole southern 0:12:50.440 --> 0:12:54.360 tier you know, Florida, you know, the the Caroline is 0:12:54.440 --> 0:12:57.440 you know, over to Texas, etcetera. And that's where we're 0:12:57.480 --> 0:12:59.960 a lot of the you know, the really most row 0:13:00.040 --> 0:13:02.439 bus growth has been. But you know, the Northeast is 0:13:02.480 --> 0:13:04.679 not like the Northeast or the Midwest or down It's 0:13:04.720 --> 0:13:07.360 just that the the other sectors that I mentioned are 0:13:07.640 --> 0:13:11.200 you really uh um, you know, really coming on quite strong. 0:13:11.400 --> 0:13:15.000 What about merchandizing, the actual merchandise, the trends, the fashion. 0:13:15.200 --> 0:13:17.920 Is there something in particular other than a new iPhone 0:13:17.960 --> 0:13:20.920 that you've seen the people really want. Well, the single 0:13:21.000 --> 0:13:25.440 hottest item right now it is in the electronics sector, 0:13:25.480 --> 0:13:28.520 and that's the Nintendo switch, and so that continues to 0:13:28.520 --> 0:13:30.280 be in short supply. This is whether you try to 0:13:30.320 --> 0:13:33.079 get it best by your target or Walmart and they 0:13:33.080 --> 0:13:35.120 simply have not been able to keep up with the demand. 0:13:35.160 --> 0:13:38.080 That's that's proven to be a real hot number in 0:13:38.120 --> 0:13:40.600 the fashion arena. You know, we're we're getting towards unit 0:13:40.600 --> 0:13:42.200 of the summer now, but it's been a very good 0:13:42.240 --> 0:13:46.280 sandal season. Um. There's something called the cold shoulder look 0:13:46.800 --> 0:13:50.160 uh that a lot of the women, including younger women 0:13:50.200 --> 0:13:52.559 are are are going for that. Tell us where did 0:13:52.600 --> 0:13:54.880 that come from? And maybe define it for those that 0:13:54.920 --> 0:13:56.960 I don't know what it means. Is it's a garment, 0:13:56.960 --> 0:13:59.800 it's a top um, although it could be addressed that 0:14:00.080 --> 0:14:06.400 where the shoulders are exposed. Um, but fabric continues, you know, 0:14:06.440 --> 0:14:10.360 down your down your arm some distance. So there's it's 0:14:10.400 --> 0:14:14.920 like there's a cutout around your shoulder. Um, and where 0:14:14.920 --> 0:14:21.000 did that come from? It you've now moved beyond my paper, Okay, 0:14:21.040 --> 0:14:23.960 but this is this is the hot trend. It's something 0:14:24.120 --> 0:14:25.720 but right now it's been out there for about a 0:14:25.800 --> 0:14:28.000 year now and some none of these trends come and goes, 0:14:28.080 --> 0:14:31.160 and we're anticipately that one that one may not make 0:14:31.200 --> 0:14:33.120 it very far into the fall and winter. I'll put 0:14:33.120 --> 0:14:35.480 it that way. Clearly, Well, the winter is not gonna 0:14:35.480 --> 0:14:37.680 make it happen. And what's the last thing that Craig 0:14:37.760 --> 0:14:40.960 Johnson bought for himself. I never buy anything for myself 0:14:41.920 --> 0:14:45.920 in Paris, socks or something that I buy. I buy 0:14:46.000 --> 0:14:48.040 a few things here that I'm not a big shopper. 0:14:48.080 --> 0:14:51.880 I'm in retail, but I hate shopping well, said Craig 0:14:51.960 --> 0:14:55.000 Johnson is the president of Customer Growth Partners. He joins 0:14:55.080 --> 0:15:11.760 us from New Canaan, Connecticut. President Donald Trump stepping up 0:15:11.800 --> 0:15:14.760 his campaign of pressure on North Korea, warning the regime 0:15:14.800 --> 0:15:17.479 not to follow through with a missile test near Guam 0:15:17.520 --> 0:15:21.560 and promising massive response to any strike against the United 0:15:21.600 --> 0:15:24.880 States or its allies. Here to tell us more, as 0:15:24.920 --> 0:15:28.480 Bill ferries, he is our national security reporter for Bloomberg News, 0:15:28.480 --> 0:15:31.360 and he joins us from Washington, d C. Bill, thank 0:15:31.400 --> 0:15:33.840 you for spending time with us. Can I just pick 0:15:33.920 --> 0:15:37.440 up on this idea of allies? Uh? Because I'm wondering. 0:15:37.480 --> 0:15:41.120 You know, we hear obviously the response from a President Trump, 0:15:41.600 --> 0:15:45.800 but what has been the position of the U. S 0:15:45.840 --> 0:15:49.280 allies that are in the region, South Korea, Japan and 0:15:49.320 --> 0:15:52.400 so on. Sure? Thanks for having me, pam Uh. The 0:15:52.400 --> 0:15:54.840 initial reaction this week as all of this started to 0:15:54.880 --> 0:15:59.160 heat up was really um, a little more muted. I 0:15:59.200 --> 0:16:01.760 think there's still UH and and actually you're seeing that 0:16:01.800 --> 0:16:03.840 from some of the President's aids as well. There's still 0:16:03.880 --> 0:16:06.000 this idea that hey, it was it was just a 0:16:06.040 --> 0:16:08.280 week ago that the U. N. Security Council, you know, 0:16:08.360 --> 0:16:12.600 unanimously passed UH these much tougher sanctions on North Korea. 0:16:13.000 --> 0:16:16.120 Diplomacy seems to be working. UM, let's give that a 0:16:16.120 --> 0:16:19.160 little bit more time. UM. And obviously, you know, a 0:16:19.240 --> 0:16:21.840 thing like sanctions that does take a while to uh 0:16:21.880 --> 0:16:24.240 to take effects. So I think a lot of UH, 0:16:24.320 --> 0:16:25.880 I think a lot of people have been caught off 0:16:25.880 --> 0:16:29.280 guard by this public war of words. UH. Some analysts 0:16:29.320 --> 0:16:33.520 we talked to will say that, uh, that Trump's comments 0:16:33.560 --> 0:16:36.000 and and actually the North Korean comments, that these are 0:16:36.200 --> 0:16:39.040 a lot of signaling to UH to China to really 0:16:39.080 --> 0:16:41.520 get much more engaged. As we know, the President has 0:16:41.600 --> 0:16:45.400 really publicly pressured China to do all it's all it 0:16:45.480 --> 0:16:48.720 can to reign in the North Korean regime. Bill what 0:16:48.840 --> 0:16:54.040 are the relationships like between South Korea, Japan, China, the 0:16:54.160 --> 0:16:59.280 United States, Australia of course involved the Philippines there, What 0:16:59.440 --> 0:17:04.560 kinds of relationships exist that could make this UH situation 0:17:04.600 --> 0:17:08.879 a little less less fraud. Well, the United States is 0:17:08.920 --> 0:17:11.840 really kind of the glue that UH that keeps UH 0:17:12.160 --> 0:17:16.479 South Korea and Japan UM in in this alliance. UH. 0:17:16.520 --> 0:17:19.040 The Australians have already come out and said that you know, 0:17:19.080 --> 0:17:21.800 they will they will support the US and any kind 0:17:21.800 --> 0:17:24.760 of a conflict there. The US, you know, every year 0:17:24.920 --> 0:17:28.560 regularly hosts a lot of military drills with its allies 0:17:28.560 --> 0:17:32.040 in Southeast Asia. I believe some of those are actually scheduled, 0:17:32.040 --> 0:17:34.359 and they've been long scheduled, but they're they're scheduled for 0:17:34.440 --> 0:17:37.400 next week. A lot of effort goes into kind of 0:17:37.880 --> 0:17:40.639 getting the militaries to be able to communicate and coordinate 0:17:40.680 --> 0:17:43.320 together so that they're ready if this kind of a 0:17:43.359 --> 0:17:46.960 situation UM takes place. Now, I would just point out, 0:17:47.000 --> 0:17:49.520 you know, I realized tensions are high and the war 0:17:49.560 --> 0:17:53.040 of words has gotten pretty heated. UM. But you know, 0:17:53.280 --> 0:17:56.000 one one sign to me that there's no sort of 0:17:56.080 --> 0:18:00.199 imminent conflict is that Secretary Defense Secretary Maddis is been 0:18:00.240 --> 0:18:03.400 on this tour of the West coast uh in Seattle. 0:18:03.440 --> 0:18:06.640 He was with Amazon in uh In in a Silicon 0:18:06.720 --> 0:18:09.119 valley today. I think he's going to Google's headquarters, and 0:18:09.200 --> 0:18:12.600 he has not cut short this trip. He's continuing on 0:18:12.720 --> 0:18:15.399 with a focus on technology issues. If he were to 0:18:15.480 --> 0:18:18.320 suddenly jump on his plane and have, you know, flown 0:18:18.359 --> 0:18:20.840 back to Washington, I'd be a lot more alarmed about 0:18:20.840 --> 0:18:23.520 what's going on at this point. Not to minimize the 0:18:23.560 --> 0:18:25.560 situation we're in, but that's, you know, one of these 0:18:25.600 --> 0:18:28.639 things that people should keep their eyes on. Well indeed, 0:18:28.680 --> 0:18:31.040 I mean he was speaking at a Pentagon facility in 0:18:31.080 --> 0:18:34.280 Mountain View, California, and I believe he said that diplomatic 0:18:34.320 --> 0:18:38.399 efforts are quote gaining traction. Uh, so there is a 0:18:38.440 --> 0:18:40.840 lot of diplomatic activity that we do not know about. 0:18:40.960 --> 0:18:43.520 Is that correct? Well, exactly, I think it was. It 0:18:43.600 --> 0:18:46.000 was a little unclear. I think he was partly referring 0:18:46.040 --> 0:18:48.920 to the UN sanctions just last weekend. We do know 0:18:49.000 --> 0:18:51.439 that NICKI Haley, the U S Ambassador to the u N, 0:18:51.520 --> 0:18:55.600 will be meeting with President Trump in New Jersey today. Uh. 0:18:55.640 --> 0:18:58.400 There's a lot of speculation about what what they may 0:18:58.440 --> 0:19:01.120 be discussing, but it would would be surprising at all 0:19:01.160 --> 0:19:03.440 if there's a little bit more of an effort at 0:19:03.480 --> 0:19:07.359 the at the U N to keep keep everyone on 0:19:07.440 --> 0:19:10.440 board and uh, and to look at any other potential measures. 0:19:10.960 --> 0:19:14.320 The president's tweet this morning that the United States you know, 0:19:14.480 --> 0:19:17.680 is locked and loaded. Uh. You know, I would add 0:19:17.680 --> 0:19:20.080 to that too, that he said, if Kim does anything, 0:19:20.240 --> 0:19:22.960 we're ready. UM. To me, that was a sign that 0:19:23.040 --> 0:19:25.040 the US is not looking at some sort of a 0:19:25.080 --> 0:19:28.680 preemptive strike. Now. As someone that you know, you you've 0:19:28.760 --> 0:19:30.720 lived and traveled all over the world, and you have 0:19:30.760 --> 0:19:34.160 a perspective that is not just let's say, US centric, 0:19:34.560 --> 0:19:38.640 What do countries or diplomats that you've been able to uh, 0:19:38.680 --> 0:19:42.240 you know, ascertain what has been their reaction to this, uh, 0:19:42.240 --> 0:19:44.120 this situation, because I mean, this is not the kind 0:19:44.119 --> 0:19:45.960 of thing that just ends up being contained in a 0:19:46.040 --> 0:19:49.160 small part of the world, perhaps, right. I think there's 0:19:49.200 --> 0:19:52.560 just a lot of surprise at the president's strategy, if 0:19:52.560 --> 0:19:54.800 we wanna, if we want to call it that I 0:19:54.800 --> 0:19:58.320 guess to be so public. I mean, every US president, 0:19:58.440 --> 0:20:01.320 every administration going back for twenty years, has dealt with 0:20:01.400 --> 0:20:06.199 some very over the top rhetoric and taunting from North Korea, 0:20:06.720 --> 0:20:09.960 and they've tended to ignore that in the past or 0:20:10.040 --> 0:20:12.959 you know, let it reflect a lot more on uh, 0:20:13.080 --> 0:20:15.639 North Korea than on anyone else. I think everyone's just 0:20:16.280 --> 0:20:20.080 surprised that for the first time we're seeing US president 0:20:20.200 --> 0:20:23.760 coming out so aggressively, uh, in a style that really 0:20:23.840 --> 0:20:27.360 to some looks like the communication style of the North 0:20:27.440 --> 0:20:30.960 Korean regime. And just to give us the update, I mean, 0:20:31.000 --> 0:20:36.760 what kind of resources military resources currently exist or maybe 0:20:36.840 --> 0:20:40.480 even threatened by North Korea, because I believe the President 0:20:40.520 --> 0:20:43.080 even tweeted something from the U. S. Pacific Command today 0:20:43.080 --> 0:20:47.679 about B one bombers. Sure, you know, as far as 0:20:47.720 --> 0:20:50.919 we can tell, there hasn't been any significant deployment of 0:20:51.000 --> 0:20:54.120 new forces to the region. So the President tweeted about 0:20:54.119 --> 0:20:57.280 the B one bombers and Guam, Uh, those have long 0:20:57.320 --> 0:21:01.359 been stationed there. They replaced a squadron of B fifty 0:21:01.400 --> 0:21:05.199 two bombers that were that kind of got phased out. Uh. 0:21:05.240 --> 0:21:08.200 You know, the military has as forces deployed all through 0:21:08.240 --> 0:21:11.479 the Pacific and through Southeast Asia. There's I think, uh 0:21:12.359 --> 0:21:16.800 about thirty thousand US troops in South Korea. We have 0:21:17.359 --> 0:21:21.359 a lot of naval forces that go through that region. 0:21:21.680 --> 0:21:23.800 You might remember, I think earlier this year, it might 0:21:23.840 --> 0:21:26.239 have been in March or April, when tensions heated with 0:21:26.240 --> 0:21:29.240 North Korea. The President deployed very publicly said he was 0:21:29.280 --> 0:21:32.399 deploying a new a second aircraft carrier battle group to 0:21:32.400 --> 0:21:35.399 the region. And then we found out a nuclear submarine 0:21:35.440 --> 0:21:37.879 was also in the region. We found out because the 0:21:37.920 --> 0:21:41.680 Pentagon basically put out a statement saying nuclear sub just stocked. 0:21:41.920 --> 0:21:43.880 We gotta leave it there. But thank you very much 0:21:43.920 --> 0:21:46.600 for your thoughts and your insight. Bill Ferries are a 0:21:46.680 --> 0:22:03.720 national security reporter for Bloomberg News. There is nothing small 0:22:03.760 --> 0:22:07.119 when it comes to the price of collectible cars. And 0:22:07.359 --> 0:22:11.199 Frank Meekam is the director of consignment of MICAM Auctions 0:22:11.359 --> 0:22:16.440 and they are scheduled to have the Monterey Mikam Monterey 0:22:16.520 --> 0:22:18.880 and they will be presenting a daytime auction that will 0:22:18.880 --> 0:22:21.520 take place between August the sixteenth and the nineteenth at 0:22:21.520 --> 0:22:25.280 the Highatt Regency Monterey Hotel in Spa. And he joins 0:22:25.359 --> 0:22:27.200 us now to tell us more. Frank, always a pleasure, 0:22:27.200 --> 0:22:30.000 Thanks for being with me, Thanks Tim, thanks for having 0:22:30.000 --> 0:22:31.720 me on. Where do you want to start? Let's start 0:22:31.720 --> 0:22:34.119 with cars, Okay, I mean, I'm I've been looking at 0:22:34.119 --> 0:22:38.600 this nine Ferrari long knows and that's just one of 0:22:38.640 --> 0:22:40.399 the ferraris that you've got. How many of you have 0:22:40.440 --> 0:22:42.879 a going on the auction block. We're going to have 0:22:43.119 --> 0:22:48.240 over forty Ferraris hit the block in Monterey. Uh, that's 0:22:48.280 --> 0:22:52.440 a neat car, neat story behind that to long knows 0:22:53.040 --> 0:22:55.800 it's it's a car that's been in the same ownership 0:22:55.960 --> 0:23:00.080 for over forty five years and in the collectible mark it. 0:23:00.480 --> 0:23:03.359 You know, you don't see many cars that are that 0:23:03.440 --> 0:23:07.720 are coming off that long of ownership. What are the 0:23:07.840 --> 0:23:14.320 estimates for this? Uh, car like this should be somewhere 0:23:14.440 --> 0:23:16.880 right up at two million to We're estimated at one 0:23:16.880 --> 0:23:19.679