1
00:00:02,520 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, Podcasts, radio News.

2
00:00:13,440 --> 00:00:18,200
Speaker 2: A Monday of single best idea after the cacophony coming

3
00:00:18,239 --> 00:00:22,840
Speaker 2: off of Friday, Saturday and Sunday. Very difficult to pick

4
00:00:22,880 --> 00:00:26,960
Speaker 2: two ideas today out of great conversations. The teamworked all

5
00:00:27,000 --> 00:00:30,680
Speaker 2: weekend a sort of piece together not where are we now?

6
00:00:31,000 --> 00:00:35,000
Speaker 2: But into the Joint Session of Congress on Tuesday. Kaylie

7
00:00:35,080 --> 00:00:39,280
Speaker 2: Lines and Joe Matthew has that for you, just sort

8
00:00:39,280 --> 00:00:42,919
Speaker 2: of where are we now? Linking together economics, finance, investment

9
00:00:43,479 --> 00:00:48,920
Speaker 2: and international relations. On international relations, my first request yesterday

10
00:00:49,479 --> 00:00:55,400
Speaker 2: Sunday was Peter Trubowitz in Austin. Years ago they developed

11
00:00:55,600 --> 00:00:59,200
Speaker 2: the Lyndon Baines Johnson School of Government, which you know,

12
00:00:59,320 --> 00:01:02,640
Speaker 2: you do, it's no big deal, but then boom, it

13
00:01:02,720 --> 00:01:06,440
Speaker 2: came out in a big way. Is a huge academic success.

14
00:01:06,520 --> 00:01:10,679
Speaker 2: And part of that LBJ school success was Peter Trueboitz.

15
00:01:10,959 --> 00:01:14,120
Speaker 2: He now holds court at the London School of Economics.

16
00:01:14,640 --> 00:01:19,560
Speaker 2: On our Secretary of State, the gentleman from Florida, Peter Truwitz.

17
00:01:19,959 --> 00:01:21,760
Speaker 1: So my view, and I've said this and I'm on

18
00:01:21,840 --> 00:01:26,479
Speaker 1: the record, I believe he won't last very long. And

19
00:01:26,520 --> 00:01:30,800
Speaker 1: that's because it's pretty clear anybody that was watching on

20
00:01:31,480 --> 00:01:35,080
Speaker 1: Friday or watched the Saturday Night Lives boof of It

21
00:01:35,440 --> 00:01:40,240
Speaker 1: realizes that Marco Rubio is very uncomfortable is basically pivoting

22
00:01:40,520 --> 00:01:43,960
Speaker 1: one hundred and eighty degrees from things that he said

23
00:01:44,000 --> 00:01:48,559
Speaker 1: about the war Putin's War in Ukraine two years ago,

24
00:01:49,280 --> 00:01:53,240
Speaker 1: you know. And so the question is can he carry

25
00:01:53,280 --> 00:01:57,040
Speaker 1: the brief and you know, you know or not? To me,

26
00:01:57,800 --> 00:02:01,040
Speaker 1: he seems like he's not a particularly relevant player in

27
00:02:01,080 --> 00:02:01,960
Speaker 1: the administration.

28
00:02:02,280 --> 00:02:06,520
Speaker 2: Peter Troubert's riveting there on all that's going on in

29
00:02:06,560 --> 00:02:09,920
Speaker 2: our political malstream, both in his London and in Washington

30
00:02:10,400 --> 00:02:13,079
Speaker 2: and New York. Try to get the full interview there

31
00:02:13,080 --> 00:02:17,440
Speaker 2: with Peter TROUBERTZ. It was very, very valuable. David Bonnson

32
00:02:17,720 --> 00:02:19,679
Speaker 2: was with us from the bonson Gropies out on the

33
00:02:19,760 --> 00:02:23,480
Speaker 2: left coast. It's usually, you know, wealth management and you know,

34
00:02:23,520 --> 00:02:25,720
Speaker 2: what are you doing, what are you doing with cash

35
00:02:26,000 --> 00:02:28,400
Speaker 2: and all that. But somewhere in the middle of the

36
00:02:28,440 --> 00:02:32,200
Speaker 2: conversation today he gave a clinic on the raging debate

37
00:02:32,280 --> 00:02:35,480
Speaker 2: that Paul Sweeney loves and that is okay, there's a

38
00:02:35,520 --> 00:02:38,000
Speaker 2: share buyback, just give me a dividend.

39
00:02:38,200 --> 00:02:40,840
Speaker 3: First of all, share buybacks don't actually happen most to share.

40
00:02:40,919 --> 00:02:43,040
Speaker 3: About seventy five percent of share buybacks and the S

41
00:02:43,040 --> 00:02:45,480
Speaker 3: and P five hundred replacing shares that were given out

42
00:02:45,480 --> 00:02:49,800
Speaker 3: in compensation, so they're not a return of payment. But

43
00:02:49,919 --> 00:02:51,680
Speaker 3: you can't eat a share buy back, and aut of

44
00:02:51,720 --> 00:02:54,040
Speaker 3: investors out there need to buy groceries and do real

45
00:02:54,080 --> 00:02:57,640
Speaker 3: things with cash, and the risk every dividend you receive

46
00:02:57,720 --> 00:03:00,280
Speaker 3: is de risking the investment. It's real monetization, and to

47
00:03:00,320 --> 00:03:02,760
Speaker 3: share buyback is compounding your risk. Now, when the stock

48
00:03:02,840 --> 00:03:04,519
Speaker 3: keeps going up, that can be a very good thing,

49
00:03:04,840 --> 00:03:07,720
Speaker 3: but it isn't the same form of capital return. But

50
00:03:07,800 --> 00:03:09,720
Speaker 3: in Cook's case, the issue has the incentive to do

51
00:03:09,800 --> 00:03:12,200
Speaker 3: dumb things of money. Now, for Apple it doesn't matter

52
00:03:12,200 --> 00:03:13,960
Speaker 3: with that kind of free cash flow, But what do

53
00:03:14,040 --> 00:03:17,160
Speaker 3: they spend on the electric vehicle experiment? Eight billion dollars

54
00:03:17,160 --> 00:03:21,160
Speaker 3: they set on fire. If you're returning dividends to shareholders,

55
00:03:21,200 --> 00:03:23,280
Speaker 3: you don't go spend eight billion dollars on a little

56
00:03:23,360 --> 00:03:24,079
Speaker 3: side project.

57
00:03:24,320 --> 00:03:26,959
Speaker 2: There have been any number of discussions in this over

58
00:03:27,000 --> 00:03:32,880
Speaker 2: the years. That was the single clearest discussion I've ever heard.

59
00:03:33,000 --> 00:03:37,520
Speaker 2: David Bunsen just absolutely spectacular there. Whatever your opinion here

60
00:03:37,680 --> 00:03:40,960
Speaker 2: We got some great feedback from people. One former media

61
00:03:41,040 --> 00:03:44,480
Speaker 2: executive emailed it and said, look, buybacks, you know are great.

62
00:03:44,560 --> 00:03:47,920
Speaker 2: There's no tax treatment versus dividends which you're taxable, and

63
00:03:48,560 --> 00:03:51,360
Speaker 2: on and on the debate goes. We'll continue to bring

64
00:03:51,400 --> 00:03:55,240
Speaker 2: that to you as we look at investment and your

65
00:03:55,240 --> 00:03:58,080
Speaker 2: commute across America. We just got in the February numbers.

66
00:03:58,080 --> 00:04:01,000
Speaker 2: We're humbled. Thank you so much. And then many different

67
00:04:01,000 --> 00:04:04,320
Speaker 2: ways to listen to us on radio, to use a

68
00:04:04,360 --> 00:04:08,960
Speaker 2: phrase from another time and place. On YouTube, you subscribe

69
00:04:09,040 --> 00:04:13,320
Speaker 2: to Bloomberg Podcast Special thank you to David Weston for

70
00:04:13,400 --> 00:04:17,600
Speaker 2: his incredible interview with the Secretary of Treasury late Friday.

71
00:04:18,320 --> 00:04:22,240
Speaker 2: To say it went viral is an understatement. I'm Bloomberg

72
00:04:22,279 --> 00:04:27,359
Speaker 2: Podcasting again. Subscribe to YouTube and on YouTube podcasts. This

73
00:04:27,480 --> 00:04:43,120
Speaker 2: is single best I am