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Speaker 1: Welcome to the Bloomberg Surveillance podcast and I'm Tom Keane.

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Speaker 1: Daily we bring you insight from the best in economics, finance, investment,

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Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud,

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Speaker 1: Bloomberg dot Com, and of course, on the Bloomberg Richard

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Speaker 1: Hass has written my book of the summer, It's The World,

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Speaker 1: and I'll make real clear. Take it and throw it

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Speaker 1: at any smart mouth college kids you know, and beg

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Speaker 1: them to at least read the first hundred and fifty pages,

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Speaker 1: which is a tour to force on the Western civilization

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Speaker 1: we've all forgotten, or quite frankly, we never took. Ambassador

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Speaker 1: has joins us now from the Council on Foreign Relations. Ambassador.

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Speaker 1: In your book The World, you write about war between countries.

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Speaker 1: Are we now at war with China? No, we're not

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Speaker 1: at war with time China. But the entire trajectory of

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Speaker 1: this relationship has changed compared to what it was. For

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Speaker 1: what unit station China built a relationship fifty years ago.

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Speaker 1: We originally worked together against the Soviet Union. Then our

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Speaker 1: economic interaction essentially became the foundation of the relationship. That

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Speaker 1: economic interaction has now become a source of friction. But

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Speaker 1: what you're seeing, particularly on the American side, is a

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Speaker 1: real ramping up rhetoric against China at a time China

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Speaker 1: is becoming more assertive in its foreign policy. We're not

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Speaker 1: at war, but this is a relationship that it seems

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Speaker 1: to have lost any positive dimension, any rationale, and increasingly

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Speaker 1: it's marked by confrontation. Investador. I want you to go

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Speaker 1: to a time and place long ago. James McGregor Burns

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Speaker 1: was great about this, about how we developed the State Department,

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Speaker 1: how we developed a foreign voice as Americans. Please comment

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Speaker 1: on the tone the disc course of our Secretary of

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Speaker 1: State this week. To me, it's original really within the

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Speaker 1: twentieth century, in this new century, is it? I'm hard pressed,

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Speaker 1: uh to find a parallel. Tome. I hear where you're going,

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Speaker 1: and I'm sympathetic to what you're saying. Our chief diplomat

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Speaker 1: is going out of his way, not just to be undiplomatic,

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Speaker 1: there's a time to be that, but to be publicly provocative,

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Speaker 1: insulting his counterparts in China. Essentially yesterday, in a speech

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Speaker 1: at the Nix Nixon Library, almost de legitimizing and almost

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Speaker 1: de legitimizing the current leadership of China. UH and essentially

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Speaker 1: it came very close, very close to calling for regime

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Speaker 1: change in China. The parallels between his approach to Iran

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Speaker 1: and the approach we heard yesterday in China I thought

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Speaker 1: were pronounced. You know, Richard, this is really really important.

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Speaker 1: The Peace Hotel over in Shanghai yesterday on Twitter put

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Speaker 1: out a photograph of their claimed British room where Henry

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Speaker 1: Kissinger I believe slept the night before he went to

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Speaker 1: Beijing to change history. Are we giving up all that

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Speaker 1: was accomplished in the early nineties seventies. I don't know.

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Speaker 1: It's too soon to say that. We don't know how

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Speaker 1: much of this is tactical, political, to be to be

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Speaker 1: blunt in our own context. In the run up to November,

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Speaker 1: we'll have to see what happens. But this is extreme.

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Speaker 1: This is the idea. By the way, this is ironic

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Speaker 1: that the speech took place at the Nixon Library. Nixon

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Speaker 1: was willing to find common cause with China despite all

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Speaker 1: of our fundamental political and social differences. Yesterday, the secretarire

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Speaker 1: State ignored the potential for the United States to work

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Speaker 1: together despite our political differences, and instead hart on those differences.

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Speaker 1: It's as if he's looking for a fight with China,

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Speaker 1: And I think again, this is this relationship. Any time

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Speaker 1: you have a relationship between a rising power and existing power,

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Speaker 1: know that it's difficult. It calls for really subtle death,

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Speaker 1: state craft on both sides, whatever else you want to cause.

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Speaker 1: Yesterday's speech, I would not use adjectives like subtle and death.

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Speaker 1: Maybe that's the tactic. I don't know, Richard. Something else

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Speaker 1: I don't know is what it's the strategy. What is

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Speaker 1: the strategy at the moment? Can you identify what it is? No? Certain?

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Speaker 1: Uh if. Traditionally in foreign policy, the strategy is to

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Speaker 1: change the external behavior of other countries. Now if our goal,

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Speaker 1: you know, we could have legitimate goals about changing China's

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Speaker 1: approach to trade. We could have goals about getting them

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Speaker 1: to ease up in Hong Kong, or not to deal

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Speaker 1: with the weakers the way they are, to stop with

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Speaker 1: their unilateral claims in the South China. Say, all of

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Speaker 1: those would be within the traditional realm of a farm policy.

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Speaker 1: That would be a strategy. We would work with our

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Speaker 1: allies to bring it about instead, and yesterday's speech, we

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Speaker 1: have the Secretary of Stay brating our allies, including Germany,

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Speaker 1: and again not making clear what exactly it is we

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Speaker 1: want China to do. That is in the realm of

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Speaker 1: foreign policy. Richard tom Kine started this asking are we

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Speaker 1: at war with China? You said, no, that's a stretch.

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Speaker 1: But is that the outcome that we're getting toward. I mean,

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Speaker 1: what is sort of the trigger points here and the

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Speaker 1: possible tip for TAT escalation That could be a worst

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Speaker 1: case scenario we've had now the tip for TAT we

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Speaker 1: close used and they closed Chang Do. I would think

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Speaker 1: the most dangerous thing for the next few months, UH

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Speaker 1: would be an incident in something like the South China.

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Speaker 1: Say China has unilateral claims, we correctly do not accept

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Speaker 1: their maritime claims. Were sending ships to the region to

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Speaker 1: demonstrate we consider these orders to be international. The idea

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Speaker 1: that you could have some type of a military incident

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Speaker 1: that could then potentially escalate, I don't think is out

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Speaker 1: of the question. So for me, the next few months,

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Speaker 1: some type of a military incident, and then the question

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Speaker 1: is do these two countries have the ability to manage it?

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Speaker 1: Do they have a desire to manage it? That I

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Speaker 1: would put uh that that to me's the greatest near

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Speaker 1: term danger. Richard, do you buy that the Phase one

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Speaker 1: trade deal is still on? Well, it's on, it's on

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Speaker 1: on paper. It's never been close to being implemented to

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Speaker 1: some extent. That's because of the context UH giving to

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Speaker 1: the coronavirus. UH. If it's on in paper, there's no

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Speaker 1: movement whatsoever towards the Phase two. I think that would

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Speaker 1: only change if if Mr Trump were re elected, and

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Speaker 1: I think suddenly my guests would be that you see

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Speaker 1: a slight winding down of this hostility towards China. If

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Speaker 1: he were re elected, there would be a desire for

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Speaker 1: some type of a deal that would that would increase

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Speaker 1: US exports to China. That's been the sentipiece of his

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Speaker 1: foreign policy to essentially try to bring about trade deals

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Speaker 1: that increased US exports. But for the time being, nothing's

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Speaker 1: going to happen. The Chinese have zero incentive to implement

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Speaker 1: the Phase one deal. And that's the ways we wrap

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Speaker 1: up this conversation. I think you've touched on something really

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Speaker 1: really important. Just reflecting on the thing you've said, Typically

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Speaker 1: diplomacy is surgical. You really think out what you're doing

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Speaker 1: and work out the whole range of responses the other

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Speaker 1: side might respond with. And I have been asking that

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Speaker 1: question this week, just how surgical the approach has been

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Speaker 1: from this administration. And I think that one thing a

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Speaker 1: lot of people are worried about is the prospect the

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Speaker 1: scope for an accident in some realm of confrontation with China.

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Speaker 1: Where do you see that potentially happening? Well, you're right,

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Speaker 1: first of all, is there anything but circle surgical would

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Speaker 1: have been? For example, rather than closing the Houston Consulate,

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Speaker 1: we might have asked quietly and privately for certain diplomats

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Speaker 1: to leave c Y might a place some restrictions on

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Speaker 1: certain students. Closing a consulate is the opposite of surgical.

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Speaker 1: That that sledge material. Again, I think you'll see heated

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Speaker 1: rhetoric for the next few months. I think the most

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Speaker 1: two things to look for. One I already mentioned a

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Speaker 1: military incident. The other is I wouldn't be shocked given

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Speaker 1: Secretary pompeios speech, is you saw if you saw some

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Speaker 1: broad actions against members of the Chinese Communist Party. We're

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Speaker 1: talking about something like ninety two million people the leadership

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Speaker 1: of China. Don't be surprised if you see travel restrictions

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Speaker 1: or something like that, which have been talked about basically

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Speaker 1: escalating not just the rhetoric, but this attack on the

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Speaker 1: leadership structure of China. And I think that's uh, that's

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Speaker 1: a possibility. I want to go back to one of

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Speaker 1: ambassador houses. Older books were trying to sell them all

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Speaker 1: here today. This is a movie. You'll see a Memorial

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Speaker 1: Day next year. Foreign policy begins at home, Ambassador House.

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Speaker 1: You never imagined a four or five trillion dollar deficit.

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Speaker 1: Granted it's off a national disaster. How is our foreign policy,

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Speaker 1: our projection to the world changed? With this new massive deficit?

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Speaker 1: Raises questions about American competence. It raises questions about the

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Speaker 1: role of the dollar as the world's the factor currency,

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Speaker 1: as that as its reserve currency. Potentially, UH introduces elements

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Speaker 1: of America of vulnerabilities. Is all fine to run these

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Speaker 1: deficits when interest rates or historic blows, but even small

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Speaker 1: movements up in interest rates would but totally transformed the

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Speaker 1: American economic picture. What I think we've done here is

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Speaker 1: we have introduced a potential source of vulnerability. It's dead.

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Speaker 1: Tom is one of those things that it's fine until

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Speaker 1: it's not so. In a sense we're merely going along

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Speaker 1: ranking it up at record rates, and that will be

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Speaker 1: fine until the day it's not, and that will be

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Speaker 1: a real day of recording. But I do think it

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Speaker 1: hastens the emergence of of a world not with a

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Speaker 1: clear alternative to the dollar, but where the dollar loses

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Speaker 1: the near monopoly it has on international transactions. Not to

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Speaker 1: be a conversation the next ambassador always fortunate to get

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Speaker 1: you on the show. I appreciate it. Time this morning

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Speaker 1: Richard Hasse of the Council on Farmer Nations. He is

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Speaker 1: the most interesting politician. He's a farm Prime Minister of Latvia,

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Speaker 1: providing great leadership out of the financial crisis. Waldis Dombrowski

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Speaker 1: brings economics and physics to his duties. Is the European

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Speaker 1: Union Commissioner for Financial Services and he helps us pick

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Speaker 1: up the debris one weekend from exhaustive meetings in Europe.

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Speaker 1: But as I have to broaden out the conversation right

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Speaker 1: now to how Europe approaches these new tensions with the

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Speaker 1: United States, the new tensions with China. Is there a

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Speaker 1: European foreign policy first of all as regards uh the

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Speaker 1: international tensions in including international trade, tensions. Uh you use

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Speaker 1: UH policy has been a very clear. We are supporting

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Speaker 1: and defending multilateral rules based system and this is an

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Speaker 1: approach which we are taking in the negotiations with US

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Speaker 1: with China. That's why we are not supportive, for example,

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Speaker 1: of unilateral more of US in the area of trade.

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Speaker 1: But at the same time, we share a number of

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Speaker 1: concerns regarding China, including questions on intellectual property rights uh uh,

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Speaker 1: forced technology transfer, reciprocity in our trade and investment relationships.

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Speaker 1: So there are a number of issues which we seem

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Speaker 1: to address, but we think those should be addressed while

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Speaker 1: respecting international rules. How do you adapt and adjust to

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Speaker 1: the Secretary of State on a tour through London and

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Speaker 1: to Denmark and then back over to San Francisco this week,

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Speaker 1: the assertive tone of the Trump administration, how do you

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Speaker 1: and mrs Mrs Vester you're in arrest, how do you

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Speaker 1: adapt to that? In Europe? Well, Uh, First of all,

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Speaker 1: as you know, UH, EU and US had its trade attention.

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Speaker 1: We managed to reach an agreement avoiding further escalation, and

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Speaker 1: currently we are building on that. So one can discuss

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Speaker 1: that the tone is assertive, but at the same time

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Speaker 1: we are negotiating and we have reached a degree of agreement. Well,

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Speaker 1: we know that initially us we're taking unilateral actions like

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Speaker 1: unilaterally raising tariffs. We were responding in a kind in

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Speaker 1: a proportionate way, but at the end of the day

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Speaker 1: we avoided further escalation and reached agreement on which we

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Speaker 1: can now build. Commissioner, we've heard a lot from Europe

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Speaker 1: about the multilateral response. Can we talk about concrete steps?

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Speaker 1: You yourself have talked about the asymmetry and market access

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Speaker 1: between Europe and China. You talk about reciprocity as well.

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Speaker 1: Can you talk to us about concrete steps. What are

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Speaker 1: you doing to get the Chinese Communist Party to change? Well, actually,

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Speaker 1: we are currently negotiating with China investment agreement and we

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Speaker 1: are currently preparing the next EU China Economic Dialogue to

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Speaker 1: discuss exactly these issues, and we hope that we will

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Speaker 1: be in a due course actually able to conclude our

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Speaker 1: negotiations on investment agreement and the issues we are discussing

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Speaker 1: with China in these negotiations are exactly the questions of

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Speaker 1: UH access to China's market, reciprocity, investment conditions, non tarift barriers.

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Speaker 1: So all these issues are on agenda with our investment

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Speaker 1: negotiations with China. Commation how much is the European Union

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Speaker 1: working with United States as tensions increase with China in

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Speaker 1: both regions. Well, as I said, we share a number

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Speaker 1: of concerns of US and we have a similar concerns

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Speaker 1: and definitely we are working is US to see how

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Speaker 1: most effectively to address these concerns, but we think that

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Speaker 1: it should be done with ZILL within multi multilateral framework,

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Speaker 1: within the framework of World Trade organization. We know that

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Speaker 1: we need a form of World trade organization and we

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Speaker 1: are willing to cooperate and coordinate our actions on this

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Speaker 1: with US. But what we are saying that one should

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Speaker 1: refrain from unilateral actions because it just escalates attentions further

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Speaker 1: and at the end of the day, negatively affects international

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Speaker 1: trade and negatively affects global economy. Commissioner, thank you for

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Speaker 1: addressing the news at the moment, particularly this morning. If

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Speaker 1: we can get you to address the news of this

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Speaker 1: week for Europe, which was a massive step forward for

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Speaker 1: the continent and fiscal integration, can you just walk us

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Speaker 1: through next steps from here when we can expect the

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Speaker 1: dead issuance from the European Commission over the next several

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Speaker 1: months when that money will be raised. Well, indeed, so

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Speaker 1: early this week EU Summit decided on the next seven

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Speaker 1: years EU budgets, so from twenty one to twenty seven,

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Speaker 1: and on the EU Economic Recovery Package worth seven hundred

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Speaker 1: fifty billion euros. So this is a major step forward.

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Speaker 1: So we welcome this, uh this agreement of the summit. Well,

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Speaker 1: there are further procedural steps. Currently we are starting negozlations

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Speaker 1: with European Parliament because also European Parliament needs to agree

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Speaker 1: today's multi annual budget and the recovery plan. In any case,

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Speaker 1: UH we from European Commission side, we consider that it's

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Speaker 1: important that negotiations are finalized swiftly uh so that the

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Speaker 1: next multi annual EU budget and recovery plan can start

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Speaker 1: acting as of January one next year, and that's when

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Speaker 1: European Commission also would start the Common Issues of dept

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Speaker 1: in order to finance EU Economic Recovery Plan. Even though

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Speaker 1: it must be said that some elements we will be

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Speaker 1: going to markets already this year because here we are

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Speaker 1: talking about economic recovery plan. But we took lots of

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Speaker 1: crisis measures in previous months, including for example, one billion

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Speaker 1: euros sure program to support employment and unemployment mitigation in

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Speaker 1: EU member states, and we will be going to markets

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Speaker 1: already this year to finance this program. Commissioner, thank you

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Speaker 1: for time this morning. We really appreciate it. Here a

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Speaker 1: Bloomberg Payter Oppenheimer Government Sex Chief Global equity strategist teach

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Speaker 1: you this now pay the fantastic to catch up with you.

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Speaker 1: Would you believe it that Europe comes out of this

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Speaker 1: week looking clean, looking good compared to the rest of

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Speaker 1: this world. Yeah, what a different decade, HIGs. I guess

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Speaker 1: because obviously Europe but was very slow to respond after

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Speaker 1: the last crisis in two thousand and eight, and it's series.

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Speaker 1: It's suffered a series of major hurdles over the years

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Speaker 1: that followed that financial crisis, but it's getting it that

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Speaker 1: together from the policy perspective, and as you say in

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Speaker 1: your report, the economies were covering quite nicely from this downturn.

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Speaker 1: Peter tom King in New York, good morning. You've got

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Speaker 1: one of the coolest degrees in the undergraduate world. The

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Speaker 1: geography degree, folks from the London School of Economics is

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Speaker 1: absolutely legendary. Tell me the geography of cheng Do, how

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Speaker 1: far is chein Do emotionally politically from Washington and from Beijing.

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Speaker 1: I too, that's a great question. U. My geography didn't

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Speaker 1: didn't really stretch to that. But I you know, I

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Speaker 1: think this is a reflection of just the growing tensions,

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Speaker 1: and so far you're getting one action matched by another.

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Speaker 1: But it looks as if these tensions, at least in

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Speaker 1: the short term, we're going to increase um and uh,

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Speaker 1: you know, this is one of the factors I think

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Speaker 1: that will probably where our markets as we move towards

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Speaker 1: the U S election of these Peter, what's the calculation

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Speaker 1: and how it affects equities because yesterday tensions were also rising,

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Speaker 1: the day before also rising, and yet it wasn't affecting

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Speaker 1: equity prices. Why today and what going forward will be

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Speaker 1: sort of the trigger point for US stock value valuations.

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Speaker 1: I think it's it's a very difficult thing to to

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Speaker 1: measure the economic impacts because of course we don't know

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Speaker 1: entirely what this means in terms of future trade tensions specifically,

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Speaker 1: which would have a more direct effects on markets. But

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Speaker 1: I think it's one of these things that just increases

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Speaker 1: the risk cremium, just the degree of uncertainty we have had,

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Speaker 1: of course, a tremendous run in ecting markets as investors

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Speaker 1: are looking through what is likely to be the worst

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Speaker 1: economic downturn for sixty seventy years into a strong recovery.

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Speaker 1: We've already seen that happening, and we've had to boost

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Speaker 1: from very strong policy stimulus. And I guess now the

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Speaker 1: the you know, the reality of what's likely to still

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Speaker 1: be quite a tough geopolitical environment, which indeed was an

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Speaker 1: issue that really bored down on empty markets in the

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Speaker 1: first half of last year. It is likely to come back.

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Speaker 1: So I think this is a bit of sort of

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Speaker 1: reality coming back to investors as they reassess the risks

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Speaker 1: over the next few months. Peter, do you think they'll

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Speaker 1: continue to look through the economic data if it looks

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Speaker 1: weaker from here are the signs that we're losing momentum

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Speaker 1: here in the US economy or do you think we're

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Speaker 1: rolling over again? Yeah, I think there is a bit

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Speaker 1: of a lot of momentum with seeing in the in

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Speaker 1: the labor market. You know, clearly the rebound from in

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Speaker 1: Q three versus Q two is going to look very

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Speaker 1: v shaped, and this is true in pretty much all

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Speaker 1: parts of the world as you start to get easing

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Speaker 1: of lockdowns to varying degrees as an improvement from a

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Speaker 1: very very weak base. But I think the question really

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Speaker 1: for investors is going to be what's the sort of

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Speaker 1: run rate after this. Bear in mind that most economies

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Speaker 1: are not going to get back to the levels of

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Speaker 1: GDP that we was seeing at the beginning of this

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Speaker 1: year until late next year or two, and I think

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Speaker 1: that that's sort of more cautious reality, together with the

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Speaker 1: geopolitics that you've mentioned, is really going to be one

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Speaker 1: of the constraints on risk assets UM over the near term. Well, Peter,

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Speaker 1: you're constantly talking to the buy side and investors, so

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Speaker 1: give us some insight into those conversations. Do you get

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Speaker 1: the sense that anemic growth, so long as that growth

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Speaker 1: is positive, that that is sufficient for risk assets? It

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Speaker 1: is partly because and you mentioned this just earlier on,

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Speaker 1: you know, real interest rates have turned increasingly negatives, and

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Speaker 1: that's a positive for risk assets. There's a lack of

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Speaker 1: alternatives for guidance has meant that nominal rates are likely

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Speaker 1: to remain at zero or close to that lower bound

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Speaker 1: for a very long time. And people are are struggling

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Speaker 1: to get a return. So although the absolute returns may

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Speaker 1: come down from here, there is a willingness I think

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Speaker 1: to look more positively at risk assets like equities, and actually, interestingly,

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Speaker 1: for the first time for a very long time, there's

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Speaker 1: amongst global investors more optimistic view of Europe specifically, which

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Speaker 1: has dealt better with this crisis. But it was also

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Speaker 1: I think surprised on the upside in terms of the

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Speaker 1: coordination of the policy response. I re peter the idea

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Speaker 1: of index versus active maybe too fancy for you, but

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Speaker 1: maybe we can just say the level of diversification now

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Speaker 1: within our equity holdings. Do you want to be over diversified,

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Speaker 1: spread it out or do you want to make more

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Speaker 1: focused bets? In the late two thousand twenty one, oh,

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Speaker 1: I think that, you know, investors of global investors, and

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Speaker 1: certainly dollar based investors should be looking at diverse fying more.

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Speaker 1: We do believe that the dollar is likely to be

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Speaker 1: con further over the coming years as interest rate differentials

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Speaker 1: narrow and as as deficits rise in the US, So

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Speaker 1: that's one reason for diversifying geographically. But also bear in

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Speaker 1: mind the last cycle, the last decade was very extreme

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Speaker 1: in terms of differences across geographers, particularly in equities. You know,

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Speaker 1: massive out performance of the US. That was justified because

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Speaker 1: the US outperforming the rest of the world in terms

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Speaker 1: of profit growth, largely because of its dominance in the

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Speaker 1: technology sector. It still has dominance in that sect and

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Speaker 1: that set is still going to be very important. But

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Speaker 1: other areas of the world are catching up a bit.

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Speaker 1: They're becoming a little bit more growth orientated themselves, not

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Speaker 1: least of which is that's true in Europe. You know,

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Speaker 1: when the crisis started a decade or more ago in

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Speaker 1: Europe were a quarter of the index that was the

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Speaker 1: epicenter of that crisis. They now accounts about seven percent,

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Speaker 1: about the same weight as the technology sector. So Europe

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Speaker 1: and Asia are getting a little bit more exposed to

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Speaker 1: growth and technology themselves, and I think that justifies more

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Speaker 1: geographical distribution, and I think probably more focused on out

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Speaker 1: opportunities and less on beta, so more on stock picking

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Speaker 1: and less on indexes. Peter, given the fact that you

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Speaker 1: believe that investors are under invested in Europe, how much

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Speaker 1: could it outperform US equity indices over the reindeer of

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Speaker 1: the year. Well, if we look out over twelve months

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Speaker 1: and you know, if we look at things in common

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Speaker 1: currency in dollar terms, we would expect Europe to be

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Speaker 1: from these levels going up around where we've got a

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Speaker 1: relatively flat return to the smp A. Part of that

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Speaker 1: is the difference in in the dividend. You know, Europe

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Speaker 1: has a higher yield than the US. Part of it

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Speaker 1: is the currency. We actually have the euro going to

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Speaker 1: one twenty five over the twelve months against the dollar,

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Speaker 1: but some of it is a bit of a catch

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Speaker 1: up evaluations. Europe still has evaluation gap, a lower evaluation

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Speaker 1: than the US market, and we think with this narrowing

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Speaker 1: with premium, with this increased confidence in Europe, that war

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Speaker 1: narrow a little bit. From here, Peter, great to catch out,

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Speaker 1: but you send up best of the team. Why you're

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Speaker 1: Peter Uppenheim in there of government sacks. Thank you very much, said.

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Speaker 1: We can speak to one of our leading policy analysts,

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Speaker 1: Bessie Stevenson of Michigan right now, of course writing for

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Speaker 1: Bloomberg Opinion and our work of course formerly with the

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Speaker 1: Department of Labor. Professor Stevenson, good morning, John's got some

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Speaker 1: very direct questions on the immediacy of where we are.

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Speaker 1: I want to go to your Twitter feed. You have

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Speaker 1: a brilliant retweet out on the fact that this is

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Speaker 1: a nation that can bail out an airline. In this case,

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Speaker 1: it happens to be Delta Airlines. Not cast dispersion there

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Speaker 1: versus what we spend on childcare in this nation. How

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Speaker 1: did that happen versus how Europe takes care of children. Yeah, so,

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Speaker 1: first of all, let me just say I love Delta Airlines,

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Speaker 1: so I don't mean to pick on them, but it

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Speaker 1: does seem to be completely crazy that Congress cares more

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Speaker 1: about saving one airline than the entire childcare industry. And

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Speaker 1: the problem is that in the United States we still

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Speaker 1: see childcare as a personal problem. Does the women's issue

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Speaker 1: of personal Come on? Not even the fat cats like me.

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Speaker 1: When the child has to go to nursery school, it's

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Speaker 1: like writing a tuition check to Michigan. I mean, come on,

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Speaker 1: it's out. Everybody watching this, everybody listening degrees this is

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Speaker 1: a busted system. What is the Stevenson response to making

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Speaker 1: our childcare on the edge of Spain's. Well, look, this

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Speaker 1: thing is we can't say, oh, we need to make

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Speaker 1: it cheaper by paying childcare workers less. You couldn't pay

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Speaker 1: those folks any less than we are. What we need

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Speaker 1: to do is invest as a nation. We have a

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Speaker 1: body of research that you know, we could stack as

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Speaker 1: high as a building that tells us that investing in

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Speaker 1: early childhood education reads huge returns for taxpayers. And what

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Speaker 1: people don't understand is if we let our early childhood

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Speaker 1: learning and our childcare systems erode during this pandemic, so

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Speaker 1: they're not there for us when we come back. It's

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Speaker 1: not just the parents are going to suffer, but it's

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Speaker 1: those kids who are going to suffer. We're gonna have

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Speaker 1: decades of pain that comes from not investing in these

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Speaker 1: children talking about leaving their parents. It's so so important.

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Speaker 1: This is not just a problem for the people on

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Speaker 1: the wrong end of it. It's not about mothers. It's

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Speaker 1: not about people without a job who might miss their

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00:26:50,240 --> 00:26:52,520
Speaker 1: payments at the end of this month. Certainly is about them,

432
00:26:52,520 --> 00:26:55,159
Speaker 1: but it's more than that. It's an economic problem. More

433
00:26:55,200 --> 00:26:58,080
Speaker 1: broadly and LISTA. We always frame this as just the

434
00:26:58,119 --> 00:27:01,119
Speaker 1: problem of the person experiencing it, and if we frame

435
00:27:01,160 --> 00:27:03,919
Speaker 1: it as a broader problem for the economy, surely the

436
00:27:03,920 --> 00:27:06,000
Speaker 1: collective will will be there to do something about it.

437
00:27:06,119 --> 00:27:08,640
Speaker 1: The U. S Census has started to try to quantify

438
00:27:08,840 --> 00:27:11,080
Speaker 1: how big of a problem this is for the economy,

439
00:27:11,119 --> 00:27:13,360
Speaker 1: and actually they released a survey today showing that more

440
00:27:13,359 --> 00:27:16,520
Speaker 1: than eight million Americans were not in work over the

441
00:27:16,560 --> 00:27:18,679
Speaker 1: past month because they had a child who was not

442
00:27:18,840 --> 00:27:21,239
Speaker 1: in school or with childcare. And meanwhile, on the other

443
00:27:21,280 --> 00:27:23,920
Speaker 1: side of that, Betsy, to your point, we have childcare

444
00:27:24,000 --> 00:27:26,760
Speaker 1: centers closing at a very quick rate because they cannot

445
00:27:26,800 --> 00:27:29,440
Speaker 1: stay in business given the fact that they cannot care

446
00:27:29,480 --> 00:27:32,639
Speaker 1: for people's children. What are you hoping to see to

447
00:27:32,800 --> 00:27:35,320
Speaker 1: bridge this gap in the upcoming months And how big

448
00:27:35,359 --> 00:27:37,400
Speaker 1: of a hit could it be on the economy if

449
00:27:37,440 --> 00:27:41,159
Speaker 1: we don't have something to remedy the situation. So the

450
00:27:41,200 --> 00:27:43,680
Speaker 1: permanent closures are the thing that I'm most worried about,

451
00:27:43,760 --> 00:27:46,080
Speaker 1: because they're not going to reopen. We're we're not going

452
00:27:46,080 --> 00:27:48,160
Speaker 1: to get a vaccine, and then the next day they

453
00:27:48,520 --> 00:27:51,800
Speaker 1: brand new childcare center props open. So we have to

454
00:27:52,000 --> 00:27:56,080
Speaker 1: keep those businesses going. We need to make sure that

455
00:27:56,119 --> 00:27:58,399
Speaker 1: we're helping them do the investments they need to do

456
00:27:58,480 --> 00:28:03,000
Speaker 1: to their infrastructure to make childcare safe during the pandemic.

457
00:28:03,320 --> 00:28:06,359
Speaker 1: And then we're going to have to make sure that

458
00:28:06,560 --> 00:28:09,640
Speaker 1: those parents who aren't at work because they're staying home

459
00:28:09,640 --> 00:28:11,680
Speaker 1: with a kid have a way to get back into

460
00:28:11,720 --> 00:28:15,399
Speaker 1: the labor market. Our labor market, you think about, the

461
00:28:15,480 --> 00:28:17,920
Speaker 1: labor market, is a highway. We have lots of off

462
00:28:18,080 --> 00:28:21,159
Speaker 1: ramps for parents, particularly for women, and we don't have

463
00:28:21,280 --> 00:28:23,800
Speaker 1: very many on ramps. And so we're gonna have to

464
00:28:23,800 --> 00:28:27,960
Speaker 1: be hitting this from every front, subsidizing childcare like crazy

465
00:28:28,119 --> 00:28:30,879
Speaker 1: and helping the parents get back to work, and making

466
00:28:30,920 --> 00:28:34,879
Speaker 1: sure that the kids are getting the again that that

467
00:28:34,960 --> 00:28:38,520
Speaker 1: early childhood education. And I think we often start talking

468
00:28:38,640 --> 00:28:42,840
Speaker 1: very directly about who really needs childcare in September versus

469
00:28:42,880 --> 00:28:44,840
Speaker 1: who doesn't. I hear a lot of talk about what

470
00:28:44,880 --> 00:28:48,360
Speaker 1: should open and what shouldn't open, But we're not prioritizing

471
00:28:48,400 --> 00:28:50,480
Speaker 1: the kids and families who need it most. And it's

472
00:28:50,560 --> 00:28:53,080
Speaker 1: time for us to start prioritizing. If we're not gonna

473
00:28:53,120 --> 00:28:55,120
Speaker 1: be able to do it for everybody, let's figure out

474
00:28:55,120 --> 00:28:57,880
Speaker 1: who's gonna be hurt most if we don't get them something. Bessie,

475
00:28:57,920 --> 00:28:59,800
Speaker 1: it's not clear the collective will down in Washington to

476
00:28:59,880 --> 00:29:02,280
Speaker 1: a rest these huge issues is actually there right now.

477
00:29:02,400 --> 00:29:05,960
Speaker 1: Another huge issue, the enhanced unemployment benefits that are set

478
00:29:05,960 --> 00:29:08,720
Speaker 1: to expire month end. Betsy, let me ask this of you.

479
00:29:08,840 --> 00:29:12,040
Speaker 1: Is there any evidence right now the enhanced benefits being

480
00:29:12,040 --> 00:29:17,120
Speaker 1: offered holding back labor supply. Well, I don't think that's

481
00:29:17,160 --> 00:29:20,000
Speaker 1: the quite the right question. What we have is a

482
00:29:20,040 --> 00:29:22,400
Speaker 1: glut of labor supply right now. That's unemployment. We have

483
00:29:22,400 --> 00:29:24,960
Speaker 1: a bunch of people who want jobs who can't get them.

484
00:29:25,000 --> 00:29:28,120
Speaker 1: When you if you create a disincentive for some people

485
00:29:28,120 --> 00:29:30,520
Speaker 1: to take those jobs, that just makes it easier for

486
00:29:30,560 --> 00:29:32,640
Speaker 1: the people who want them to take them. So I

487
00:29:32,680 --> 00:29:35,760
Speaker 1: don't think we have any evidence right now that these

488
00:29:35,840 --> 00:29:38,680
Speaker 1: enhanced benefits are are changing the number of people who

489
00:29:38,720 --> 00:29:42,280
Speaker 1: are employed. That's the real question, right And I don't

490
00:29:42,320 --> 00:29:44,440
Speaker 1: think that if we continue to offer some kind of

491
00:29:44,560 --> 00:29:48,040
Speaker 1: enhanced benefits right now, with unemployment as high as it is,

492
00:29:48,280 --> 00:29:52,800
Speaker 1: with permanent layoffs happening every single day, continually happening, I

493
00:29:52,800 --> 00:29:55,480
Speaker 1: don't think that our problem is that we're paying the

494
00:29:55,560 --> 00:29:59,000
Speaker 1: unemployed too much. Um. Paying the unemployed is actually what's

495
00:29:59,080 --> 00:30:04,040
Speaker 1: keeping the economy going, because that's what's keeping demand stimulated,

496
00:30:04,080 --> 00:30:06,920
Speaker 1: and that's what you know, keeping food on people's tables.

497
00:30:07,320 --> 00:30:09,680
Speaker 1: It's gave a massive lift to consumption over the last

498
00:30:09,680 --> 00:30:12,680
Speaker 1: couple of months, it's undeniable, Betsy. The job number here

499
00:30:12,680 --> 00:30:15,720
Speaker 1: on Wall Street is getting so so difficult to read

500
00:30:16,000 --> 00:30:18,520
Speaker 1: going into the next couple of weeks. Continuing claim suggests

501
00:30:18,560 --> 00:30:21,360
Speaker 1: it might be okay. Initial jobless claim suggests to store

502
00:30:21,400 --> 00:30:24,600
Speaker 1: the high frequency data says things aren't great in many

503
00:30:24,640 --> 00:30:26,960
Speaker 1: states across the sun. Bout how do you view things

504
00:30:27,040 --> 00:30:30,560
Speaker 1: right now? Well? I do think that those claims data

505
00:30:30,600 --> 00:30:33,680
Speaker 1: have been really hard to interpret. They certainly didn't predict

506
00:30:34,080 --> 00:30:38,560
Speaker 1: the last jobs report, and I don't think they're necessarily

507
00:30:38,560 --> 00:30:40,320
Speaker 1: going to tell us about this one. Look what I

508
00:30:40,440 --> 00:30:44,800
Speaker 1: see is I see ongoing permanent layoffs. Those are not

509
00:30:45,280 --> 00:30:48,840
Speaker 1: businesses temporarily shutting down saying, look, we gotta stay safe

510
00:30:48,880 --> 00:30:50,360
Speaker 1: for a month and then'm going to bring you back.

511
00:30:50,640 --> 00:30:53,560
Speaker 1: These are businesses looking ahead at their revenue stream and

512
00:30:53,640 --> 00:30:56,800
Speaker 1: saying I can't afford this payroll over the next year.

513
00:30:57,160 --> 00:30:59,880
Speaker 1: They're letting people go with no intention of bringing them back.

514
00:31:00,400 --> 00:31:03,000
Speaker 1: And those permanent layoffs, those are the people who have

515
00:31:03,040 --> 00:31:06,640
Speaker 1: a much harder time finding work again. So that's what

516
00:31:06,720 --> 00:31:09,360
Speaker 1: I worry the most about. I also think that if

517
00:31:09,400 --> 00:31:11,600
Speaker 1: you look back to what the reference week was like,

518
00:31:11,680 --> 00:31:14,400
Speaker 1: we're talking about the jobs report we're talking about, you know,

519
00:31:14,520 --> 00:31:17,280
Speaker 1: the week that included July twelve. I've thought a lot

520
00:31:17,400 --> 00:31:19,720
Speaker 1: during that week what's going on this week? And what

521
00:31:19,800 --> 00:31:23,840
Speaker 1: I saw was new shutdowns happening in the Southwest, And

522
00:31:23,880 --> 00:31:27,360
Speaker 1: they didn't see a lot of new reopenings, basically people

523
00:31:27,360 --> 00:31:29,680
Speaker 1: who were gonna companies that were going to reopen, bring

524
00:31:29,720 --> 00:31:32,920
Speaker 1: people back, restaurants, things like that. But it mostly happened

525
00:31:33,000 --> 00:31:35,560
Speaker 1: by by June. So I think we're going to see

526
00:31:35,560 --> 00:31:38,240
Speaker 1: a negative number. Um, I don't think it's gonna be

527
00:31:38,240 --> 00:31:40,160
Speaker 1: a big negative number, but I don't think we're gonna

528
00:31:40,160 --> 00:31:42,080
Speaker 1: see the kind of you know, I don't think we're

529
00:31:42,080 --> 00:31:46,680
Speaker 1: gonna see enough people brought back from temporary layoff to

530
00:31:47,160 --> 00:31:50,400
Speaker 1: offset the large numbers of people who are being permanently

531
00:31:50,480 --> 00:31:53,400
Speaker 1: laid off right now, Betsy, this raises a really important question.

532
00:31:53,480 --> 00:31:55,840
Speaker 1: John's been talking about it this morning. Is this a

533
00:31:55,960 --> 00:32:00,320
Speaker 1: deceleration of the recovery or is this a reverse? Is

534
00:32:00,320 --> 00:32:03,360
Speaker 1: this a double dip? And what you're talking about is

535
00:32:03,400 --> 00:32:06,760
Speaker 1: the scope of the second wave, the second order of layoffs,

536
00:32:06,880 --> 00:32:11,600
Speaker 1: enough to throw us into a double dip recession. So

537
00:32:11,800 --> 00:32:14,400
Speaker 1: I don't think of this as a double dip recession, right.

538
00:32:14,440 --> 00:32:17,600
Speaker 1: I think that the data is confusing because temporary lay

539
00:32:17,680 --> 00:32:20,720
Speaker 1: up are not a real recession. The real recession comes

540
00:32:20,720 --> 00:32:24,920
Speaker 1: when people stop spending money and we, uh, we need

541
00:32:24,960 --> 00:32:28,720
Speaker 1: to shed businesses, we need to shed workers because we're

542
00:32:28,720 --> 00:32:31,160
Speaker 1: not bringing enough money in. I don't think we've fully

543
00:32:31,160 --> 00:32:34,840
Speaker 1: seen the scope of our current recession. And what concerns

544
00:32:34,880 --> 00:32:38,760
Speaker 1: me the most is I haven't seen any real recovery.

545
00:32:39,200 --> 00:32:42,480
Speaker 1: What I saw was some businesses trying to reopen. Those

546
00:32:42,480 --> 00:32:46,440
Speaker 1: businesses that reopened, they seem to not exactly be thriving.

547
00:32:46,640 --> 00:32:48,680
Speaker 1: So I don't think that's necessarily a double dip. But

548
00:32:48,800 --> 00:32:51,360
Speaker 1: I don't think we're at the bottom of this thing, Professor.

549
00:32:51,440 --> 00:32:56,360
Speaker 1: One final question, Lisa from New York emails in and says,

550
00:32:56,640 --> 00:32:59,920
Speaker 1: could you ask the professor the profound effect of TikTok

551
00:33:00,080 --> 00:33:03,320
Speaker 1: uck on the children of America? I mean, Professor, what

552
00:33:03,360 --> 00:33:09,240
Speaker 1: do we do about TikTok um? You know, I have

553
00:33:09,360 --> 00:33:12,960
Speaker 1: to say, I myself enjoy Sarah Cooper on TikTok um,

554
00:33:13,160 --> 00:33:17,400
Speaker 1: and I do have my children do seem to like

555
00:33:17,560 --> 00:33:21,960
Speaker 1: ticktok But I'm no expert in media consumption for children.

556
00:33:22,320 --> 00:33:24,360
Speaker 1: I think you just revealed your politics. If people didn't

557
00:33:24,360 --> 00:33:26,880
Speaker 1: know already anyway, Betsy, fantastic to catch up with your

558
00:33:27,200 --> 00:33:30,720
Speaker 1: Sarah Cooper on TikTok Betsy, Greg, Bessie Stevenson. There a

559
00:33:30,800 --> 00:33:36,440
Speaker 1: Bloomberg View columnists joining us, Sam Kennedy with the Boston

560
00:33:36,520 --> 00:33:40,120
Speaker 1: Red Sox and he was intimately involved John in the

561
00:33:40,160 --> 00:33:44,240
Speaker 1: acquisition of a small football team in the United Kingdom. John,

562
00:33:44,280 --> 00:33:47,040
Speaker 1: why don't you pick it up in celebration North of

563
00:33:47,120 --> 00:33:49,160
Speaker 1: Law can tell you Sam, they're having a Red Sox

564
00:33:49,200 --> 00:33:53,000
Speaker 1: co anchor fan that is almost unbearable. Sometimes Liverpool fans

565
00:33:53,000 --> 00:33:56,680
Speaker 1: are equally as unbearable. They've had their moments. Sam, what

566
00:33:56,800 --> 00:33:59,479
Speaker 1: an experience for all of you. Can you walk us

567
00:33:59,480 --> 00:34:02,840
Speaker 1: through what you've learned with this experience Indianata Kingdom with

568
00:34:02,880 --> 00:34:06,720
Speaker 1: English football? Well, we've we've learned a lot. We still

569
00:34:06,760 --> 00:34:08,600
Speaker 1: have a lot more to learn. As you know. It

570
00:34:08,760 --> 00:34:13,520
Speaker 1: is an incredibly global club with following like you've We've

571
00:34:13,520 --> 00:34:18,760
Speaker 1: seen nowhere else. But congratulations to Jurgen Klop and Michael Edwards,

572
00:34:18,800 --> 00:34:22,359
Speaker 1: Billy Hogan everyone at Liverpool that put this club back

573
00:34:22,440 --> 00:34:25,120
Speaker 1: on top of the English Premier League. Quite an achievement

574
00:34:25,600 --> 00:34:29,120
Speaker 1: and we're very excited at Fenway Sports Group and now

575
00:34:29,120 --> 00:34:32,319
Speaker 1: we're hungry for more trophies. As they say, Sam, how

576
00:34:32,360 --> 00:34:35,680
Speaker 1: do you retain talent in Premier League? How do you

577
00:34:35,760 --> 00:34:40,800
Speaker 1: retain talent in Major League Baseball? Well, there's a common theme,

578
00:34:40,880 --> 00:34:44,279
Speaker 1: and that is that we need to generate the resources

579
00:34:44,320 --> 00:34:46,080
Speaker 1: on the business side to be able to go out

580
00:34:46,160 --> 00:34:50,000
Speaker 1: and afford players, whether it's in global football or in

581
00:34:50,080 --> 00:34:53,960
Speaker 1: Major League Baseball, and consistently reinvest our revenues back into

582
00:34:54,200 --> 00:34:58,799
Speaker 1: our baseball operation, our football operation. That's been twenty year

583
00:34:58,880 --> 00:35:02,040
Speaker 1: strategy by John Enry, Tom Warner and Mike Gordon, and

584
00:35:02,080 --> 00:35:05,239
Speaker 1: that will continue as long as these guys own and

585
00:35:05,320 --> 00:35:09,080
Speaker 1: operate these different clubs. We've had our ups and downs. Uh,

586
00:35:09,160 --> 00:35:12,279
Speaker 1: it is an exciting time right now, um for our

587
00:35:12,400 --> 00:35:15,160
Speaker 1: organization and excited to get going over here in the US.

588
00:35:15,239 --> 00:35:18,759
Speaker 1: On the baseball side, the dreaded Los Angeles Dodgers just

589
00:35:18,920 --> 00:35:22,320
Speaker 1: unloaded a salary package to a baseball player I forget

590
00:35:22,320 --> 00:35:25,319
Speaker 1: his name. I'm sorry, let's say I'm I mean, come on,

591
00:35:25,680 --> 00:35:29,200
Speaker 1: there's a pandemic on there's economic slowdown, you've got TV

592
00:35:29,320 --> 00:35:31,840
Speaker 1: revenue issues. You're trying to get bodies in the stands.

593
00:35:32,080 --> 00:35:35,480
Speaker 1: Everybody everywhere else but Fenway and maybe Wrigley Field. Have

594
00:35:35,640 --> 00:35:40,000
Speaker 1: the Dodgers set up a new war of salary. Well,

595
00:35:40,440 --> 00:35:43,760
Speaker 1: congratulations to Bookie Bets. He's an amazing player, a great person.

596
00:35:43,880 --> 00:35:47,000
Speaker 1: We're sorry to see him go with the dreaded Dodgers.

597
00:35:47,440 --> 00:35:50,439
Speaker 1: I think it's a reflection, frankly, of what a great

598
00:35:50,520 --> 00:35:53,160
Speaker 1: job the Dodgers have done managing their payroll. They put

599
00:35:53,160 --> 00:35:56,120
Speaker 1: themselves in this position to be able to make this commitment.

600
00:35:56,160 --> 00:35:57,799
Speaker 1: And if you're going to make a commitment like that,

601
00:35:58,040 --> 00:36:00,040
Speaker 1: Mookie is a guy you want to do it. We

602
00:36:00,200 --> 00:36:03,359
Speaker 1: we tried. That's on us. Unfortunately we were not able

603
00:36:03,400 --> 00:36:05,440
Speaker 1: to come to terms with him, but we do wish

604
00:36:05,520 --> 00:36:08,839
Speaker 1: him well. We don't wish the Dodgers well, however. Well,

605
00:36:08,920 --> 00:36:13,880
Speaker 1: congratulations to all of baseball for starting a curtailed season yesterday.

606
00:36:13,960 --> 00:36:16,200
Speaker 1: But it was sort of a disappointing the game, the

607
00:36:16,280 --> 00:36:18,719
Speaker 1: Nationals manager coming out and saying, it turned out long.

608
00:36:18,800 --> 00:36:20,680
Speaker 1: Let's to put it that way. We just have to

609
00:36:20,719 --> 00:36:23,680
Speaker 1: put this one behind us. Do you think that baseball

610
00:36:24,080 --> 00:36:27,120
Speaker 1: as an industry had a missed opportunity getting this off

611
00:36:27,120 --> 00:36:29,520
Speaker 1: the ground earlier, given the fact that this is not

612
00:36:29,719 --> 00:36:33,799
Speaker 1: a contact sport. You know, I think we started right

613
00:36:33,800 --> 00:36:37,000
Speaker 1: at the right time. Of course, you'd always love more baseball,

614
00:36:37,080 --> 00:36:40,000
Speaker 1: but in terms of dealing with the virus and looking

615
00:36:40,040 --> 00:36:42,440
Speaker 1: at the schedule on the calendar of the different markets

616
00:36:42,440 --> 00:36:45,760
Speaker 1: and the surge and spikes in different areas, Commissioner Manfred

617
00:36:45,840 --> 00:36:48,200
Speaker 1: just deserves the tip of the cap from the whole industry,

618
00:36:48,239 --> 00:36:51,759
Speaker 1: as does Tony Clark for coming together and getting an

619
00:36:51,760 --> 00:36:54,600
Speaker 1: agreement together to to to move forward on health and

620
00:36:54,640 --> 00:36:59,000
Speaker 1: safety protocols. Uh. This is an experiment. It is um

621
00:36:59,000 --> 00:37:01,480
Speaker 1: It is a high wire act, to be sure, but

622
00:37:01,520 --> 00:37:04,120
Speaker 1: the players are taking it seriously. We're taking it seriously

623
00:37:04,160 --> 00:37:06,920
Speaker 1: in our facilities, and now we need to execute and

624
00:37:06,960 --> 00:37:09,920
Speaker 1: we have a really exciting brand of baseball sixty games

625
00:37:09,920 --> 00:37:13,000
Speaker 1: and now an expanded postseason. It'll be great for baseball

626
00:37:13,040 --> 00:37:15,480
Speaker 1: fans around the world. Sam, You've got a relationship with

627
00:37:15,600 --> 00:37:19,960
Speaker 1: legendary stadiums Fenway Park and Field. They're going to be

628
00:37:20,000 --> 00:37:24,960
Speaker 1: empty for the foreseeable future, and surely that changes the business.

629
00:37:25,520 --> 00:37:28,439
Speaker 1: Why you spend money, where you cut money? Sam, talk

630
00:37:28,520 --> 00:37:31,520
Speaker 1: me through that conversation now and what you're planning for

631
00:37:31,560 --> 00:37:34,200
Speaker 1: a season of no fans, two seasons of no fans.

632
00:37:34,200 --> 00:37:37,040
Speaker 1: What does that look like. Yeah, we're planning we have

633
00:37:37,120 --> 00:37:40,920
Speaker 1: our upside, our mid case are are low case. We

634
00:37:41,000 --> 00:37:44,880
Speaker 1: have disaster scenarios. Um you know. Again a credit to

635
00:37:44,920 --> 00:37:47,440
Speaker 1: our ownership group, they continue to invest in the product

636
00:37:47,440 --> 00:37:50,239
Speaker 1: on the field. But in terms of our business, it

637
00:37:50,360 --> 00:37:53,320
Speaker 1: is critical that we get fans back in the stands

638
00:37:53,360 --> 00:37:55,560
Speaker 1: at some point as soon as it is safe and

639
00:37:55,600 --> 00:37:57,920
Speaker 1: the and the government and health officials say we can

640
00:37:57,920 --> 00:38:01,799
Speaker 1: do it both at anfield and if Enway Park. For baseball,

641
00:38:02,160 --> 00:38:06,480
Speaker 1: we rely on gate revenues fifty plus percent of our revenue.

642
00:38:06,520 --> 00:38:09,080
Speaker 1: So as you can imagine, this has been devastating for

643
00:38:09,120 --> 00:38:13,719
Speaker 1: the business. But the country needs sports, the country needs baseball,

644
00:38:14,080 --> 00:38:16,319
Speaker 1: uh and we need to keep going through a pandemic,

645
00:38:16,360 --> 00:38:19,000
Speaker 1: and flexibility is the order of the day. Everyone has

646
00:38:19,040 --> 00:38:22,120
Speaker 1: shown a willing to willingness to be flexible and we'll

647
00:38:22,200 --> 00:38:25,880
Speaker 1: keep doing that and and readjusting our budgets and evaluating

648
00:38:26,160 --> 00:38:28,799
Speaker 1: as we go forward. But what's important is we'll be

649
00:38:28,800 --> 00:38:32,320
Speaker 1: back on the field tonight at Fenway Park. Readjusting your budgets.

650
00:38:32,360 --> 00:38:35,040
Speaker 1: That goes direct to some of the labor negotiations that

651
00:38:35,200 --> 00:38:39,600
Speaker 1: hampered the beginning of this season. How much do you

652
00:38:39,640 --> 00:38:43,279
Speaker 1: expect some of the players to accept accept cuts in

653
00:38:43,320 --> 00:38:47,960
Speaker 1: their wages based on what we've seen so far this year. Yeah, amazingly.

654
00:38:48,160 --> 00:38:51,399
Speaker 1: You know, the players have accepted, um, the fact that

655
00:38:51,440 --> 00:38:54,200
Speaker 1: we're only playing thirty seven and a half percent of

656
00:38:54,239 --> 00:38:56,800
Speaker 1: the games regular season. I believe if we get going

657
00:38:56,920 --> 00:38:59,959
Speaker 1: so they're taking less wages. Everyone in the front office

658
00:39:00,040 --> 00:39:03,120
Speaker 1: US is taking less wages. Uh, it's everywhere. It's a

659
00:39:03,160 --> 00:39:06,600
Speaker 1: reality across our country, across the world. It's a very

660
00:39:06,640 --> 00:39:09,160
Speaker 1: difficult time. None of us have been through a pandemic.

661
00:39:09,200 --> 00:39:11,839
Speaker 1: I hope we never see it again, and I hope

662
00:39:12,040 --> 00:39:16,360
Speaker 1: we get going into knock on Wood. Hopefully a vaccine

663
00:39:16,400 --> 00:39:19,640
Speaker 1: is around the corner. We'll keep our fingers crossed. Sam Kennedy,

664
00:39:19,719 --> 00:39:22,120
Speaker 1: it's your fault. Bring up the camera here. I'm doing

665
00:39:22,160 --> 00:39:25,200
Speaker 1: my hands here, I'm standing outside the battery box doing

666
00:39:25,280 --> 00:39:29,480
Speaker 1: Nomar Garcia part my son's student and brookline Sam, right

667
00:39:29,520 --> 00:39:32,600
Speaker 1: off of Beacon Street into the Nomar thing in the

668
00:39:32,600 --> 00:39:35,240
Speaker 1: batter's box. How are you going to speed up the game?

669
00:39:35,680 --> 00:39:38,280
Speaker 1: How are you going to speed up as Garcia Par's fault?

670
00:39:38,560 --> 00:39:41,319
Speaker 1: How are you going to speed up the game? Uh? Well,

671
00:39:41,400 --> 00:39:43,080
Speaker 1: we need to. We need to keep working at it

672
00:39:43,120 --> 00:39:45,160
Speaker 1: with the players. UM. You know, you can add things

673
00:39:45,200 --> 00:39:47,520
Speaker 1: like a pitch time or a pitch clock. You can

674
00:39:47,520 --> 00:39:50,320
Speaker 1: limit mound business, you can make mold changes. I agree

675
00:39:50,360 --> 00:39:52,160
Speaker 1: with you. It's something that we need to do. We're

676
00:39:52,200 --> 00:39:55,160
Speaker 1: about three hours and eight minutes. Not good. Yeah, be

677
00:39:55,200 --> 00:39:58,279
Speaker 1: great to get back in the two range if at

678
00:39:58,320 --> 00:40:02,520
Speaker 1: all possible. It's a priority for Commissioner Manford and his team. Um,

679
00:40:02,560 --> 00:40:05,080
Speaker 1: and we'll work on it. But at this point, I

680
00:40:05,120 --> 00:40:07,960
Speaker 1: think our fans and all of us are just excited

681
00:40:07,960 --> 00:40:11,880
Speaker 1: to have baseball back. Uh and we'll enjoy having live product,

682
00:40:11,960 --> 00:40:15,600
Speaker 1: live content on television, on radio, on digital platforms. But

683
00:40:15,640 --> 00:40:17,520
Speaker 1: I agree with you, we do want to speed up

684
00:40:17,520 --> 00:40:19,440
Speaker 1: the game. It's a it's a priority, especially as we

685
00:40:19,440 --> 00:40:22,319
Speaker 1: look to connect with that next generation of fans. Hey, Sam,

686
00:40:22,480 --> 00:40:24,279
Speaker 1: great to catch up when you come back soon. I'll

687
00:40:24,320 --> 00:40:27,920
Speaker 1: whisper it. Congratulations for Liverpool. I'm kind of Evost and

688
00:40:27,960 --> 00:40:33,560
Speaker 1: Red Silks than by the Tops. Thanks for listening to

689
00:40:33,640 --> 00:40:38,160
Speaker 1: the Bloomberg Surveillance podcast. Subscribe and listen to interviews on

690
00:40:38,200 --> 00:40:44,040
Speaker 1: Apple Podcasts, SoundCloud, or whichever podcast platform you prefer. I'm

691
00:40:44,080 --> 00:40:47,399
Speaker 1: on Twitter at Tom Keane before the podcast, you can

692
00:40:47,440 --> 00:41:00,320
Speaker 1: always catch us worldwide. I'm Bloomberg Radio