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Speaker 1: Welcome to the Bloomberg P and L Podcast. I'm Pim Fox.

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Speaker 1: Along with my co host Lisa Abramowitz. Each day we

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Speaker 1: bring you the most important, noteworthy, and useful interviews for

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Speaker 1: you and your money, whether at the grocery store or

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Speaker 1: the trading floor. Find the Bloomberg P L Podcast on iTunes,

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Speaker 1: SoundCloud and at Bloomberg dot com. President Trump this morning

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Speaker 1: signed an order to renegotiate the US trade agreements with

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Speaker 1: Mexico and Canada under NAFTA. I want to get a

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Speaker 1: little bit more insight now on what this means for

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Speaker 1: Canadian US relationships. It's bringing Josh Wingrove, Canada Politics reporter Josh.

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Speaker 1: Do we have a sense of what President Trump might

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Speaker 1: start with in his renegotiation of his Canadian trade deals?

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Speaker 1: I mean defense from the Canadians. Is he going to

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Speaker 1: start with mexic Co and all the industries that are

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Speaker 1: driving what he sees as a trade and balance with

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Speaker 1: Mexico and not Canada. And I think that's what's really

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Speaker 1: going to splinter the nap the path as we know

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Speaker 1: it right now, is that Canada thinks, if not hopes,

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Speaker 1: that it is not the target. The ambassador here or

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Speaker 1: the Canadian ambassador to the US said that they don't

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Speaker 1: want to become the collateral damages Donald Trump makes it

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Speaker 1: takes measures that will address that trade and balance. So

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Speaker 1: for them, I think it's really a wait and see.

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Speaker 1: Canada is the top provider princess of oil for an

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Speaker 1: oil to the US, and they don't think that that

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Speaker 1: will be impacted, So that would at least blunt any

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Speaker 1: initial impact for the Canadian economy. Josh, We're getting a

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Speaker 1: report that Donald the President, Donald Trump's son in law,

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Speaker 1: Jared Kushner, will be going to Calgary for a meeting

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Speaker 1: with Justin Trudeau and his team. He is supposed to

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Speaker 1: travel there tomorrow, where Trudeau and his cabinet are currently

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Speaker 1: holding a two day retreat focused largely on a new

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Speaker 1: US administration. Does send me just having Jared Kushner arrive

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Speaker 1: in Calgary? Does that bode well for US Canada relations? Yeah,

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Speaker 1: I think so. I'm in Calgary now. The meetings here

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Speaker 1: have just kicked off. Steven Schwartzman, was tied to Trump

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Speaker 1: as well, is also here to speak to the Canadian

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Speaker 1: government cabinet about what, if anything he thinks the you know,

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Speaker 1: the m O of this Trump administration is going to be.

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Speaker 1: Kushner and Stephen Bannon have had talks with Justin Trudeau's

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Speaker 1: most senior aids dating back to December. He appears to

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Speaker 1: be sort of the go to guy for Trump when

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Speaker 1: it comes to Canada ties, and so I think that

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Speaker 1: the Canadians are seeing his reported attendance here at this

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Speaker 1: meeting tomorrow as a as a good sign. Josh, can

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Speaker 1: I assume that when you say that Canada is hoping

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Speaker 1: that Mexico is the primary target of this, that Canada

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Speaker 1: is expecting no change to its trade agreements with the

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Speaker 1: US as a results of this, Is that is that right? No,

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Speaker 1: I don't think that that. I think they're expecting that

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Speaker 1: there's no intent to fundamentally change, But their concern is

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Speaker 1: that they're going to be painting with such a wide

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Speaker 1: brush out of Washington that Canada might not be able

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Speaker 1: to avoid getting caught up in things. It would be

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Speaker 1: the biggest risk will be the biggest risk for Canada.

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Speaker 1: The biggest risk or on new border taxes, probably that

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Speaker 1: with the flow of goods across the Canada U s

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Speaker 1: border is staggering and the supply chains are sort of

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Speaker 1: interconnected back and forth in other words, which it can

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Speaker 1: cross the border several times before it actually hits the market,

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Speaker 1: and if you start tagging those back and back, it

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Speaker 1: would throw into disarray the whole scheme at Trudeau's big

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Speaker 1: argument with Trump is that thirty five U S States

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Speaker 1: have Canada as their top export market and they hope

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Speaker 1: that that's our sort of ace in the hole here

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Speaker 1: in Canada. Is there any way that you can kind

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Speaker 1: of quantify the Canadian economy forest right now and the

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Speaker 1: perception of how Justin Trudeau and his Liberals are doing

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Speaker 1: it's sluggish right now. Can that fundamentally has been an

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Speaker 1: oil uh sort of energy economy, and for two and

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Speaker 1: a half years they've been struggling with how to spur

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Speaker 1: that growth. And so any dip or hit from reduced

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Speaker 1: trade with the US, which makes up about seventy of

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Speaker 1: Canada's total trade, would be would be a significant thing.

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Speaker 1: Trudeau is pushing Canada deeper into deficit and a bit

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Speaker 1: to drive growth. That money has been slow going out

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Speaker 1: the door. The data points recently have been mixed, and

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Speaker 1: so really the any US disruption would be viewed by

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Speaker 1: Canada is just sort of another straw on the Canal's

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Speaker 1: back of the economy that's really struggling to pick up team,

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Speaker 1: and you're one what is it, one thirty three Canadian

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Speaker 1: to the dollar. Yeah, that, which has been flagged by

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Speaker 1: Stephen Polas is actually too strong. Our Bank Canada governor

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Speaker 1: here thinks that the if the dollar was weaker, that

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Speaker 1: we'd be seeing a bigger uptick in manufacturing. Canada's typical

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Speaker 1: sort of pendulum is that when plays like Calgary where

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Speaker 1: they're meeting now, where I'm now and which is the

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Speaker 1: oil capital of Canada, when things are down here, manufacturing

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Speaker 1: picks up the flack that right hasn't really happened, and

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Speaker 1: so they're hoping that maybe a lower dollar one day

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Speaker 1: might chool that. Thank you very much for joining us,

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Speaker 1: josh One Grove. He is our Canadian politics reporter joining

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Speaker 1: us from Calgary side of a two day meeting with

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Speaker 1: Justin Trudeau and his Liberal cabinet. McDonald's. McDonald's reported its

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Speaker 1: earnings that exceeded analyst estimates. However, this stock is down

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Speaker 1: about eight tens of a percent, perhaps because of concern

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Speaker 1: over US same store sales they fell one point three percent.

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Speaker 1: But here to tell us all the details, Mike Haylen,

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Speaker 1: senior restaurant analysts for Bloomberg Intelligence, and Mike I I

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Speaker 1: use that word but very carefully here because I read

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Speaker 1: your note this morning and you said, don't look at

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Speaker 1: this near term thing. They're lapping some comps from last

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Speaker 1: year with that All day breakfast. They got bigger problems,

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Speaker 1: don't they. Everyone has bigger problems, Yeah, which we we've

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Speaker 1: written about over the last week, UM, which is demographics. Right,

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Speaker 1: the American population is aging, and they're spending has probably

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Speaker 1: capped out. It's a very large generational cohort um in

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Speaker 1: terms of numbers. They have higher debts than retirees had

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Speaker 1: in the past. So yeah, those are that's the big problem.

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Speaker 1: In terms of their quarter. You know, there is some

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Speaker 1: concern about the same source sales in the US falling

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Speaker 1: one um, you know for the quarter. But that's actually

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Speaker 1: better than what the street had expected. And if you

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Speaker 1: do if you look at what we do is on

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Speaker 1: a two year and a three year trend to kind

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Speaker 1: of smooth out for weather and calendar shifts, UM and

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Speaker 1: large um market and all day breakfasts the more. Yeah, yeah,

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Speaker 1: All day breakfast, and there was a huge marketing push

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Speaker 1: behind it last year. But so when you look at

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Speaker 1: a two year and a three year trend, sale are

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Speaker 1: actually accelerating. So um, you know, with with the um

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Speaker 1: better margins that you're seeing because of their story franchising,

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Speaker 1: you know, the story hasn't changed here. So globally, it's

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Speaker 1: sales accelerated. Where specifically did their sales increase the most? Yeah,

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Speaker 1: they they they were successful in China, Japan and the

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Speaker 1: UK were three of the mortkets that they had mentioned

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Speaker 1: as being strong for them. And and is it just

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Speaker 1: because there wasn't as much penetration in those markets before

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Speaker 1: and they're expanding, Well, the same story of sales numbers

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Speaker 1: come from existing store so um, you know, it could

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Speaker 1: possibly being be that some of the franchisees you know

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Speaker 1: do the refranchising over the last couple of years are um,

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Speaker 1: you know, are are being successful in terms of running

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Speaker 1: better stores. Um there's some um you know, there's still

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Speaker 1: um you know, doing better in Asia where there was

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Speaker 1: some some supply chain issues with chicken and stuff like that.

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Speaker 1: So you're you're comping over some of those issues of

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Speaker 1: the last couple of years. So um that all helps.

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Speaker 1: We you and I were trading some emails Earlier this morning,

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Speaker 1: Mike and I kind of joked about the automat. Why

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Speaker 1: is the automat such an apt reference point for people

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Speaker 1: that don't know you explain, Yeah, well you taught me

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Speaker 1: about the automat. It was a restaurant concept in New

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Speaker 1: York City from decades ago where you would kind of

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Speaker 1: place an order and it would just magically appear and

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Speaker 1: you put your you put you'd put actual coins when

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Speaker 1: coins could actually buy something. Was like little windows, like

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Speaker 1: those little post office you know, where the mail would

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Speaker 1: come in and you would put in your coin and

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Speaker 1: you would be able to take out a piece of

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Speaker 1: pie or whatever, you know, with on a plate. But

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Speaker 1: the reason that's that's relevant is because that is a

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Speaker 1: similar concept in a way to what McDonald's is doing.

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Speaker 1: Explain that the automat was ahead of its time. So yeah,

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Speaker 1: with technology is where a lot of these restaurant chains

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Speaker 1: are moving to kind of help boost their sales. Right. Um,

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Speaker 1: you know, for McDonald's it's a self order kiosks. Millennials

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Speaker 1: don't want to take their ear pods out and talk

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Speaker 1: to anyone, you know, they'd rather just go to the kiosk,

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Speaker 1: you know, you know, hit a few buttons and how

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Speaker 1: their food brought out to them. So this is a

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Speaker 1: big push for McDonald's. UM. Wendy's is another one that

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Speaker 1: that is because it cuts labor costs to right and

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Speaker 1: also speeds of efficiency. We don't see automats today. How

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Speaker 1: effective have these kiosks been, Well, they've been very successful

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Speaker 1: in Europe from McDonald's Frances. What about in the US. Well,

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Speaker 1: the US we've been slow to adopt, right, So labor

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Speaker 1: is much higher as a much higher cost in Europe.

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Speaker 1: So that's why you've seen them push it um there

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Speaker 1: before here, um, but now with minimum wage rates rising

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Speaker 1: over the last handful of years, you know, labor is

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Speaker 1: a bigger cost, so there's more of an incentive. There's

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Speaker 1: a better r o I on these kiosks, so that's

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Speaker 1: why you're seeing chains move that way. Um. Well, this

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Speaker 1: doesn't even have to use the kiosk. You could just

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Speaker 1: use a mobile app, go in and pick it up, right.

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Speaker 1: I mean that's also one of these days there's lines

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Speaker 1: are are going to be a thing of the past.

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Speaker 1: You're just gonna walk in and your food is gonna

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Speaker 1: be waiting for you. So um. You know, we also

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Speaker 1: have these um you know alerts. You know a lot

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Speaker 1: of these apps have alerts. They know when you pull

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Speaker 1: into the drive through and they'll have your they'll they'll

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Speaker 1: start cooking your order as you drive onto the problems,

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Speaker 1: they'll check your previously. Just open your mouth and they

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Speaker 1: throw in an egg McMuffin and you're done right. But

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Speaker 1: they're gonna offer maybe for just for a little bit more.

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Speaker 1: They will offer it to have someone I have breakfast

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Speaker 1: with you. But oh yeah, and and take a napkin

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Speaker 1: and wipe your face if it gets messy. What about

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Speaker 1: other places? What about for example, are they taking a

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Speaker 1: similar que and coming up with sort of self ordering kiosks.

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Speaker 1: They're not moving towards kiosks just yet. They're they're more, um,

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Speaker 1: they're more concerned with the app. And the big thing was,

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Speaker 1: you know, they have the high class problem of long

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Speaker 1: lunch lines. So a big part of that is going

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Speaker 1: to be the order ahead, and they're developing a second

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Speaker 1: make line um that that funnels these electronic orders and

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Speaker 1: get your food ready for you faster. So everyone's going

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Speaker 1: this way. I mean, there's gonna be varying degree of

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Speaker 1: success though we think that you know, McDonald's may have

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Speaker 1: a leg up because they have this technology already implemented

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Speaker 1: in Europe, so they already have a very large test

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Speaker 1: that's gone well, so they have an advantage over somebody

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Speaker 1: like Chipotle who hasn't done it before. Michael Hale and

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Speaker 1: consumer analyst from Bloomberg Intelligence, Thank you so much. I

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Speaker 1: am wondering whether we're ever going to have a day

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Speaker 1: when it's just immediate gratification. We have fast gratification, but

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Speaker 1: this is a whole new level, pimp Fox. Let's turn

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Speaker 1: our attention now to the world of the middle market

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Speaker 1: with Lawrence Gallub. He is the chief executive of Gallub Capital. Lawrence,

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Speaker 1: thanks for being with us here in the studio. Maybe

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Speaker 1: just defined for us what is middle market and then

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Speaker 1: you just in the same context, the information that you

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Speaker 1: glean from your clients you turn into an index that

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Speaker 1: may can reveal something about the economy. Tell us more.

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Speaker 1: The u S middle market refers to companies that have

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Speaker 1: between about ten million dollars a year profit up to

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Speaker 1: a few hundred million dollars a year. Profits generally smaller

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Speaker 1: than what Wall Street or the public markets would pay

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Speaker 1: attention to, but it accounts for one third of US GDP,

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Speaker 1: almost a three trillion dollar market, accounts for more than

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Speaker 1: half of job growth in the United States. Gallup Capital

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Speaker 1: is a lender to U S middle market companies, where

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Speaker 1: the largest non bank lender in the United States, and

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Speaker 1: we have a portfolio of about two hundred different companies

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Speaker 1: that we lend to, and we've created an index with

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Speaker 1: at Altman, a professor at n y U, to track

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Speaker 1: the performance the actual performance of US middle market companies

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Speaker 1: based on actual results from the first two months of

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Speaker 1: each calendar quarter, so we can share that information with

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Speaker 1: the market before earning season really kicks off for public companies.

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Speaker 1: So what are what indications are getting from this index? Well,

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Speaker 1: this quarter profits are a little bit weak. Profits are

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Speaker 1: actually down median profits are down about two and the

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Speaker 1: that weakness is coming from two segments, in particular, restaurants

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Speaker 1: and healthcare services. That's really interesting to me because a

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Speaker 1: lot of people have talked about how the economy is

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Speaker 1: starting to accelerate and there's a clear belief in sort

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Speaker 1: of the reflation of the economy. Could it be that

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Speaker 1: the weakness in these smaller companies is idiosyncratic and separate

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Speaker 1: um or does it sort of bode poorly for some

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Speaker 1: of the bigger companies. Will keep in mind that we

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Speaker 1: only cover about half the industries in the United States

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Speaker 1: with our lending, so we generally don't lend to energy

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Speaker 1: related or commodity related or big bulk manufacturing businesses. And

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Speaker 1: you need to look at its sector by sector to

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Speaker 1: see the trends. Industrial company the US are actually doing

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Speaker 1: pretty well. Profits are up, very consistent with g S

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Speaker 1: earnings announcement that revenues were flatish but profits were up.

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Speaker 1: I think we are dealing in the restaurant sector with

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Speaker 1: a particular set of circumstances that's different from the rest

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Speaker 1: of consumer products. There's really an overcapacity issue and a

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Speaker 1: demand shortfall that's causing counts at restaurants to fall from

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Speaker 1: where they've been historically. One thing that I find fascinating

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Speaker 1: right now is the growing number of pension funds and

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Speaker 1: other large investors who are trying to get into private

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Speaker 1: credit strategies and who are going into middle markets. I'm wondering,

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Speaker 1: from a competitive standpoint, do you think that valuations are

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Speaker 1: getting uh particularly high or that the amount of money

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Speaker 1: that you're seeing is particularly notable. Well, you can look

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Speaker 1: at that in two ways. You can look at purchase

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Speaker 1: multiples by private equity firms of middle market companies and

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Speaker 1: and LBO firms are paying very high multiples for growth.

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Speaker 1: You're seeing double digit multiples for medium sized companies based

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Speaker 1: on the ability or the expectation that eb t A

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Speaker 1: is going to grow through. Add on acquisitions that are

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Speaker 1: creative because they're at lower multiples, or organic growth or

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Speaker 1: green fields. On the credit side, you know, we are

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Speaker 1: seeing pension funds and insurance companies and some sovereign wealth

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Speaker 1: funds looking to deploy more money in a very low

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Speaker 1: interest rate environment, and capital is relatively debt capitals relatively

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Speaker 1: plentiful for good borrowers that are backed by good private

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Speaker 1: equity firms. I just want to bring to your attention

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Speaker 1: at Bloomberg headline that Etna's humanity takeover has been blocked

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Speaker 1: by a judge as anti competitive, and the shares of

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Speaker 1: Etna are down about one and a quarter per cent.

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Speaker 1: And we'll give you more details as we get it,

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Speaker 1: but right now, Etna's Humanity takeover blocked by a judge

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Speaker 1: as anti competitive. You know, Laurence in the middle market,

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Speaker 1: you mentioned you're a non bank lender. UH, can you

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Speaker 1: give us. Since you're not in the banking industry, do

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Speaker 1: you see that banks are walking away from the middle market.

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Speaker 1: That was an accusation that I remember hearing all through

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Speaker 1: the rebuild after two thousand and eight, that there was

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Speaker 1: no bank money coming into small and middle market companies.

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Speaker 1: So if you look at healthy borrowers, because banks don't

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Speaker 1: want to lend to unhealthy borrowers in any field, we

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Speaker 1: look at healthy borrowers. Most of the change happened before

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Speaker 1: the financial crisis. The percentage of capital lending to middle

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Speaker 1: market companies was coming from banks dropped to only about

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Speaker 1: by two thousand and four, well before the credit crisis,

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Speaker 1: Dodd Frank. So we're not seeing any real change. I

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Speaker 1: think it is accurate to say that banks don't lend

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Speaker 1: to middle market companies as much as they did a

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Speaker 1: decade or two ago. But but that's really based on

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Speaker 1: the banks and ability to make money from that as lenders.

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Speaker 1: What about from the demand side, from the borrowers standpoint.

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Speaker 1: I know for a while people were saying, you know,

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Speaker 1: there's plenty of lenders, lenders, willing lenders, but the companies

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Speaker 1: don't really want to borrow. Has that changed? I think

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Speaker 1: that growth buyouts. Companies that are making it on acquisitions

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Speaker 1: expanding want to borrow a lot. Can you give us

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Speaker 1: some examples. Well, we're we're lender to a few companies

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Speaker 1: that are consolidating the veterinary care industry, and to us,

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Speaker 1: that's a consumer product, not a healthcare product. And these

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Speaker 1: these businesses are acquiring mom and pop venary clinics or

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Speaker 1: venrary hospitals, doing fifty add on acquisitions a year, and

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Speaker 1: so they do seek additional capital. We sometimes structure that

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Speaker 1: as a delayed draw term loan, so it's committed capital.

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Speaker 1: Other times it's through upsizes. We often have this debate

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Speaker 1: about increasing revenue but at the expense of profits or

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Speaker 1: vice versa, that margins have been compressed. Are you seeing

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Speaker 1: that in middle markets? We definitely are seeing that in

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Speaker 1: healthcare services. It's interesting you talked about the the ETNA headline.

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Speaker 1: The compression of reimbursement rates in healthcare has caused margin compression.

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Speaker 1: I think we have not seen in healthcare services companies

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Speaker 1: the ability to take advantage of operating leverage. Volumes are up,

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Speaker 1: procedures are up, but costs are up and and margins

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Speaker 1: are not going up. It's really the opposite of what

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Speaker 1: we're seeing in the restaurant area, where the problem is

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Speaker 1: counts not being up more than anything else. So people

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Speaker 1: have sort of referred to the cliche of a credit

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Speaker 1: iCal in terms of baseball innings one through nine. If

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Speaker 1: that were the case, can you give us a sense

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Speaker 1: of where we are in the middle market cycle From

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Speaker 1: a lender's point of view, two percent growth is great?

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Speaker 1: Two percent growth lets us keep our credit losses low. Uh.

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Speaker 1: Two percent growth gives huge margin for safety. Everything we're

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Speaker 1: seeing in our portfolio is consistent with the economy continuing

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Speaker 1: to grow at a steady level. Not a level that's

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Speaker 1: going to make Washington happy, not a level that's going

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Speaker 1: to boost wages dramatically. But everything we see in the

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Speaker 1: credit cycle shows going in a continuing, very stable way.

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Speaker 1: Do you think it would be dangerous for your company

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Speaker 1: as if growth did get to four, well, if inflation

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Speaker 1: picks up, there are some risks because if inflation picks

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Speaker 1: up an interest rates go up. Just the absent level

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Speaker 1: of interest rates takes away some of the cushion. We

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Speaker 1: also would worry about a diversion disparity of weak performers

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Speaker 1: versus strong performers in the portfolio, because any lender is

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Speaker 1: his money from their weak performers, not from their average performer.

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Speaker 1: Lawrence Gollub, thank you so much for joining us. Lawrence Galob,

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Speaker 1: CEO of Gollub Capital with twenty billion dollars under management. Uh,

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Speaker 1: talking about the middle market and how there might be

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Speaker 1: some weakness but in general, UH, fairly studied growth at

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Speaker 1: least among the winners. I want to bring in Jennifer Jacobs.

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Speaker 1: She is a Bloomberg politics reporter here, Uh, to give

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Speaker 1: us a little bit more color from what happened this morning.

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Speaker 1: President Trump met with a round table of business executives

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Speaker 1: and pledged to cut regulation by more than seventy five percent,

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Speaker 1: as well as to drastically slash taxes and uh potentially

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Speaker 1: tax if I have a border tax. Jennifer, what's the

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Speaker 1: headline for you? Yeah, that's exactly it. He's got these

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Speaker 1: big plans for a border tax. He's saying he's going

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Speaker 1: to dramatically cut taxes. There was a lot of different

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Speaker 1: business officials there. We had everyone from Dell Technologies, Whirlpool,

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Speaker 1: Ford Motor Company, Johnson and Johnson del Chemical, etcetera. So

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Speaker 1: the Trump mission today is to really accentuate jobs, US investment,

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Speaker 1: and so they're steering things away from all the controversy

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Speaker 1: over the weekend over crowd sizes in John Spicer's press

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Speaker 1: conference and moving things back to jobs in in economy,

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Speaker 1: and so that is their message of the day and

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Speaker 1: they're trying to stay very focused on that. Jennifer, is

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Speaker 1: there any way that you can describe for us the

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Speaker 1: change that you have experienced so far in covering the

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Speaker 1: Trump administration compared to UH covering the Obama administration, just

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Speaker 1: in terms of organization and details, Because I know that

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Speaker 1: there's a one thirty press briefing schedule for today. Yeah, exactly.

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Speaker 1: That'll be Sean Spicer's the first official press briefing where

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Speaker 1: he takes questions. Of course, the one over the weekend

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Speaker 1: was just a statement. He did not take questions. They're

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Speaker 1: getting their feet under them. One of the aposts joking

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Speaker 1: to me that he's just finding the bathroom where they're

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Speaker 1: now logged into the system and have their White House

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Speaker 1: email addresses. UM, And they're very much, you know, getting

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Speaker 1: organized and doing things more along the lines of how

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Speaker 1: the Modument administration was doing it before. So things were

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Speaker 1: a little bit rocky over the weekend. But you know,

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Speaker 1: we give them a little bit of wicker rooms since

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Speaker 1: they were brand new. Um, but if from the press

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Speaker 1: point of view, they are beginning to mimic what the

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Speaker 1: Obama team did, and it seems to be going much

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Speaker 1: more smoothly, Jennifer, Are relations between the press and President

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Speaker 1: Trump's team as bad as they seem just on the surface?

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Speaker 1: Over the weekend, the news was about alternative fact. Kelly

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Speaker 1: and Conway responded to a television hosts question about Sean

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Speaker 1: Spicer and his claims about a record inaugural attendance, and

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Speaker 1: she said, well, he presented alternative facts. I mean, does

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Speaker 1: this this this highlight sort of a neat deer of

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Speaker 1: a relationship between the press. Well, we are always worried

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Speaker 1: about tensions between the Trump team and the press, but

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Speaker 1: Bloomberg's relationship with their aids is very, very good. I

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Speaker 1: think we do have a sense of trust with them.

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Speaker 1: They appreciate Bloomberg and think we do a lot of good,

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Speaker 1: fair reporting, So I'm not worried about it from that perspective.

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Speaker 1: Just the overarching relationship sometimes does concern me. But you know,

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Speaker 1: Sean Spicer, not to defend him, but just to kind

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Speaker 1: of give some context there. He has a boss who

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Speaker 1: is very, very concerned about crowd size. From the earliest

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Speaker 1: days of Trump's campaign, even before he had officially declared

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Speaker 1: he was running for president, he would get very annoyed

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Speaker 1: with the press, who he thought was underestimating his crowd sizes,

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Speaker 1: including me. I've been the I guess, the subject of

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Speaker 1: some of his rants about underestimating crowd sizes, and so

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Speaker 1: I'm and so this was huge for Trump too. He

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Speaker 1: wanted to be able to come out saying that he

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Speaker 1: has this mandate from the people, that he had a

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Speaker 1: bigger crowd than ever. And so I'm certain that Sean

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Speaker 1: Spicer was doing what the president wished, which was to

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Speaker 1: go out there and say this was the largest crowd

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Speaker 1: that anyone had ever witnessed. And then Sean was very

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Speaker 1: careful to couch that and say around the globe. And

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Speaker 1: that's a very difficult thing to defend or deny. How

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Speaker 1: do we know how many people were witnessing that around

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Speaker 1: the globe? And wasn't more than for President Obama? Who knows,

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Speaker 1: But either way, I just happen to know that that's

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Speaker 1: something and we all know that that's something that President

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Speaker 1: Trump is very sensitive about He always wants to have

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Speaker 1: the biggest crowds, and he always wants to to really

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Speaker 1: push that, and he thinks that any attempt to minimize

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Speaker 1: his crowd is is the media delegitimizing him. Jennifer, this afternoon,

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Speaker 1: I understand that President Trump will be meeting with labor leaders. Uh.

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Speaker 1: We were gonna speak little later on the program about

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Speaker 1: McDonald's app raises, the issue of the minimum wage, federal

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Speaker 1: minimum wage, and so on. I'm wondering if you have

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Speaker 1: any insight into what those discussions will be about, right.

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Speaker 1: I do not yet. I do know that they're very

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Speaker 1: interested in talking to those workers. They had told me

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Speaker 1: yesterday that this was going to be happening and that

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Speaker 1: they really wanted to hear It's a listening session. They

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Speaker 1: really want to hear from them, and they're going to

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Speaker 1: pay attention to what these workers have to say. That's

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Speaker 1: all I know so far, Jen, I you know, the

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Speaker 1: more that I hear some of the actions that President

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Speaker 1: Trump is taking today, I have to wonder what is

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Speaker 1: his relationship with the Republican leaders in House and Senate,

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Speaker 1: And have you gathered whether there is a sort of

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Speaker 1: closeness as far as working together to get some of

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Speaker 1: these provisions past, yeah, definitely. Right before the inauguration, some

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Speaker 1: of the key staffers for some of the leaders on

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Speaker 1: the Hill has told me legitimately their relationship is much better,

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Speaker 1: especially with Speaker Ryan and the Trump team. They legitimately

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Speaker 1: have a good report at this point. They're almost giddy

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Speaker 1: to be working together and to be getting things done.

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Speaker 1: But as far as that sharing of information, I'm not

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Speaker 1: so sure that that's happening quite yet, but partly because

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Speaker 1: the Trump team maybe doesn't have it all planned out.

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Speaker 1: I'm not sure if it's that, but because of what

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Speaker 1: I do ask the Trump team, you know, what are

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Speaker 1: your plans for executive orders? And what are you know?

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Speaker 1: What are you hoping to move first in Congress? And

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Speaker 1: they say, we really do have a plan where we

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Speaker 1: have more um of a plan than anyone would would

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Speaker 1: ever suspect. Trust us, We're ready. Don't don't under estimate

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Speaker 1: us like you guys did there in there in the campaign.

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Speaker 1: So information is trickingling out very slowly. It's very slowly

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Speaker 1: getting up to Congress. But I do think that their

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Speaker 1: relationship is very good right now. Can you toss the

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Speaker 1: status of nominations for the cabinet. UM. Yeah, that I

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Speaker 1: am not certain on um. I I do not have

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Speaker 1: an update for you on that. How about Theresa May

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Speaker 1: and the potential for a UK US trade pact, She's

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Speaker 1: getting to meet with the President on Friday, I believe correct,

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Speaker 1: and Bloomberg broke the news um that they are are

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Speaker 1: hoping to lay the groundwork this week on a trade

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Speaker 1: deal for between the US and the UK for after

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Speaker 1: the UK exits the European Union. I know from speaking

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Speaker 1: to my sources that they began meeting with Theresa May's staff,

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Speaker 1: her defense ministers and foreign ministers in December. They've been

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Speaker 1: meeting repeatedly with them. Um. They met with her two

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Speaker 1: chiefs of staff, and they've been having repeated conversations, continued conversations,

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Speaker 1: really stressing that relationship between the United States and the

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Speaker 1: UK and and this is really really important to them

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Speaker 1: to have her come over here. They want to start

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Speaker 1: building this and they think that they can get a

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Speaker 1: lot of good solid work done on getting a trade

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Speaker 1: agreement with the UK done this week. Thank you very

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Speaker 1: much for joining us. Jennifer Jacobs is our national political

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Speaker 1: reporter for Bloomberg. News. Thanks for listening to the Bloomberg

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Speaker 1: P and L podcast. You can subscribe and listen to

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Speaker 1: interviews at iTunes, SoundCloud, or whatever podcast platform you prefer.

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Speaker 1: I'm pim Fox. I'm out there on Twitter at pim Fox.

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Speaker 1: I'm out there on Twitter at Lisa Abramo. It's one

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Speaker 1: before the podcast. You can always attach us worldwide on

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Speaker 1: Bloomberg Radio