WEBVTT - New GE CEO Has An Uphill Battle, Needs To Shrink Power

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<v Speaker 1>Welcome to the Bloomberg p m L Podcast. I'm Pim Fox.

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<v Speaker 1>Along with my co host Lisa Bramowitz. Each day we

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<v Speaker 1>bring you the most important, noteworthy, and useful interviews for

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<v Speaker 1>you and your money, whether you're at the grocery store

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<v Speaker 1>or the trading floor. Find the Bloomberg p m L

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<v Speaker 1>Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. General

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<v Speaker 1>Electric shocking up markets today, ousting John Flannery after just

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<v Speaker 1>a year of his tenure there as chief executive and

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<v Speaker 1>replacing him with the renowned turnaround experts, shares surging the

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<v Speaker 1>most in nine years, up more than twelve The question

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<v Speaker 1>is what is this new CEO going to do and

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<v Speaker 1>will it be enough to fix a situation that seems

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<v Speaker 1>to be growing increasingly urgent. Karen, youveil Heart joining us

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<v Speaker 1>now senior industrials analysts for Bloomberg Intelligence. Karen, thank you

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<v Speaker 1>so much for being here. It seems like this move

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<v Speaker 1>is almost one of desperation, saying we need to fix something,

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<v Speaker 1>and we need to fix something fast. I think it is.

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<v Speaker 1>I don't think this was a plan. You know, a plan.

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<v Speaker 1>They put Larry on the board, Larry cop on the board.

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<v Speaker 1>I think you know as a part partially credibility, partially

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<v Speaker 1>because he's a great operating guy, and they and they's

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<v Speaker 1>a new CEO. The new CEO. Yeah, um and uh,

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<v Speaker 1>I think this was as they just had to get

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<v Speaker 1>something done quickly. And he's a very good operator. He's

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<v Speaker 1>a lot of credibility on the street because of his history.

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<v Speaker 1>And I just felt I just think they gave up

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<v Speaker 1>on what if you got to if let's say, Larry

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<v Speaker 1>Cop called Karen you will heart and said, tell me,

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<v Speaker 1>based on your experience covering GE, what do you think

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<v Speaker 1>is the most important thing I should focus on right now? Well,

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<v Speaker 1>clearly it's it's Power. But um, I was a little disturbed.

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<v Speaker 1>Um that he that Flannery was going to make Power

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<v Speaker 1>the largest business in GE with an operating margin goal

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<v Speaker 1>of ten percent. You know that is not a solid plan. Um,

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<v Speaker 1>and I think, uh, you know, a ten percent operating

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<v Speaker 1>margin company, you need a much higher you know, that's

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<v Speaker 1>not going to please shareholders. Um. Larry Culp came in,

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<v Speaker 1>dannaher was at ten percent, it was but don margin

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<v Speaker 1>money left. I mean, uh, you know, so I said

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<v Speaker 1>that is not going to be enough. He's got to

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<v Speaker 1>shrink Power quickly. Um, I think he's got to sell

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<v Speaker 1>off pieces of powers and and that's what his iterative process.

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<v Speaker 1>Dana her business systems does get down to the granular level.

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<v Speaker 1>And I think he's gonna look at that not as

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<v Speaker 1>one business, but as many businesses. Try to stop the

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<v Speaker 1>bleeding as much as he can there. I think he

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<v Speaker 1>may rethink some of those assets sales like healthcare. Uh,

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<v Speaker 1>you know, and because that is a good business that

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<v Speaker 1>they were getting rid of because they needed cash. Um,

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<v Speaker 1>I think he'll be able to pull cash out of

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<v Speaker 1>the different businesses. There's a lot of fategy and and uh,

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<v Speaker 1>Danna her Business Systems help solve some of those problems.

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<v Speaker 1>So one thing that we were talking about earlier, so

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<v Speaker 1>that even though you're seeing that rally in GES shares,

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<v Speaker 1>you're not seeing a commensurate rally in the company's bonds.

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<v Speaker 1>And they have a lot of them. They have more

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<v Speaker 1>than a hundred and twelve billion dollars of debt. Uh,

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<v Speaker 1>you're not seeing the same pop. I'm just wondering a

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<v Speaker 1>much smaller General Electric, how will they right size their

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<v Speaker 1>debt portfolio right now? That's massive, h That's that's uh,

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<v Speaker 1>you know, that's a good question. He's got to generate uh,

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<v Speaker 1>you know cash to be able to you know, retire it,

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<v Speaker 1>and that's going to be his number one priority. I think, uh,

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<v Speaker 1>you take that. His number one priority is going to

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<v Speaker 1>be dealing with the massive amount of debt while also

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<v Speaker 1>shrinking the company and making sure that it revives it. Yes,

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<v Speaker 1>and and the rate I mean, I'm not I'm not,

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<v Speaker 1>I'm not the credit guy, of course, but but the

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<v Speaker 1>rating was always vulnerable and now they just took twenty

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<v Speaker 1>three billion dollars in the good will, you know, wrote

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<v Speaker 1>down the asset value of the company quite substantially. So

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<v Speaker 1>that should have some implications too. Although that's a good thing,

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<v Speaker 1>I think. Is is it a job that Larry Couple

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<v Speaker 1>find a little easy because he is not a ge veteran.

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<v Speaker 1>I think the fresh look it will make it easier

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<v Speaker 1>for him to take, you know, take some you know,

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<v Speaker 1>bigger actions. One of the negatives against Flannery was, yes,

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<v Speaker 1>he was a fresh um you know, uh new CEO,

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<v Speaker 1>but he was ge generated, if you will, And so

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<v Speaker 1>this gives him a chance. I think the one thing

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<v Speaker 1>that's most interesting is he was a builder of business,

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<v Speaker 1>right and now he's got to be a deconstructor of

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<v Speaker 1>a very large business. So, um, it's gonna be a

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<v Speaker 1>different kind of challenge. I think one thing I'm struck

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<v Speaker 1>by is that g E is tasked with the shrinking

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<v Speaker 1>dramatically and quickly at a time when they're increasing trade

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<v Speaker 1>tensions between the U S and China. How does that

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<v Speaker 1>affect the valuations that they're going to be able to

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<v Speaker 1>realize when they do try to go and sell quickly.

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<v Speaker 1>That that's a good question, um. I think a lot

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<v Speaker 1>of their businesses, like the healthcare business for example, a

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<v Speaker 1>lot of the businesses are producing local you know, they're

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<v Speaker 1>operating locally. Um. And you haven't really seen multiples come

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<v Speaker 1>down that much in M and A so um so

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<v Speaker 1>far with the trade tension. So I don't wouldn't put

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<v Speaker 1>that on the top of the list of concerns. The

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<v Speaker 1>potential liabilities that g E still faces because of payouts

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<v Speaker 1>having to do with pensions and so on. What can

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<v Speaker 1>you tell us there the long the pension? You know, hey,

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<v Speaker 1>they're gonna lucky a little bit on the pension because

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<v Speaker 1>interest rates are going up and and and they already

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<v Speaker 1>have lowered the pension somewhat as a result of that.

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<v Speaker 1>In some cash they put in. They're putting six billion

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<v Speaker 1>dollars into it. That's gonna be less of a problem.

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<v Speaker 1>I think the concern is what else is in that

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<v Speaker 1>black hole, like the long term liability that no one expected,

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<v Speaker 1>right yeah, So I think that's the concern, Like what

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<v Speaker 1>else is in that ge credit? Um? I think pension.

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<v Speaker 1>They're chipping away at it, and they're gonna get lucky

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<v Speaker 1>with were interest rates are going and are expected to

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<v Speaker 1>go just twenty seconds. I'm just wondering, how does it

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<v Speaker 1>affect g E that they're going to basically have forced sales?

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<v Speaker 1>Does that reduce the prices that people will be willing

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<v Speaker 1>to offer them? I well, you know, so far what

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<v Speaker 1>they've sold, they actually did a little bit better than

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<v Speaker 1>expected on almost all of them. Um. It's a hot

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<v Speaker 1>market for for for M and A. So UM, I

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<v Speaker 1>don't think they'll they'll do something in desperation. He's a

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<v Speaker 1>methodical guy. It's going to be interesting because he has

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<v Speaker 1>to move fast, but he also doesn't want to make,

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<v Speaker 1>you know, mistakes. It's it's it's not an easy challenge.

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<v Speaker 1>I mean, right now the pop is you know, everyone's

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<v Speaker 1>excited about him, but it's gonna be an uphill battle

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<v Speaker 1>for him to well. Inteed, looking at the shares of

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<v Speaker 1>General Electric, they are higher right now by more than

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<v Speaker 1>twelve percent. Our thanks to Karen uble Hart, Senior Analyst

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<v Speaker 1>for Machinery and All Things ge at Bloomberg Intelligence. Last

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<v Speaker 1>week was dominated by the Brett Kavanaught hearings, where he

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<v Speaker 1>addressed some allegations of sexual misconduct when he was in

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<v Speaker 1>high school. Joining us now Aspreneurs Senior editor of the

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<v Speaker 1>National View, also a Bloomberg opinion columnist. I am so

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<v Speaker 1>glad that you're with us for MESH, because you've been

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<v Speaker 1>supporting Brett Kavanaugh, and we've had people on who have

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<v Speaker 1>sort of been very critical of his performance last week.

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<v Speaker 1>What was your impression, not of the allegations of sexual misconduct,

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<v Speaker 1>but of his actual comportment in front of the Senate

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<v Speaker 1>Judiciary Committee. I think he acted like somebody who believes

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<v Speaker 1>he's innocent and is genuinely outraged by the allegations against him,

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<v Speaker 1>and showed the kind of righteous indignation um that somebody

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<v Speaker 1>in that situation would expect. The thing is guilty. People

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<v Speaker 1>also often have the same affect, uh, And we can't

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<v Speaker 1>really infer something one way or the other from just

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<v Speaker 1>the way he comported himself well, but but putting aside

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<v Speaker 1>the sexual allegations altogether, I guess that there's one question.

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<v Speaker 1>Especially because he brought up, you know, sort of very

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<v Speaker 1>partisan comments about the Democratic plot against him, and because

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<v Speaker 1>he was cutting off senators, people are saying that that

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<v Speaker 1>shows a lack of respective procedure that's sort of important

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<v Speaker 1>for the judicial system. So I guess I'm wondering what

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<v Speaker 1>your senses of that. Yes, so people have been saying,

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<v Speaker 1>you know, he lacks a usual temperament and even saying

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<v Speaker 1>that he's he disqualified himself for the job just by

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<v Speaker 1>his behavior, and I think that, Look, he's been on

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<v Speaker 1>the he's been on an important court for more than

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<v Speaker 1>a decade now, and the judicial temperament that one is

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<v Speaker 1>seeking is the is the temperament of a person as

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<v Speaker 1>a judge, not as a quasi defendant, which is what

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<v Speaker 1>he is in this instance. You know, Look, judges are

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<v Speaker 1>asked to recuse themselves when their personal interests are on

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<v Speaker 1>the line. This is the case where he is being

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<v Speaker 1>a two very very serious offenses, and I think it

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<v Speaker 1>would be foolish to expect him to be sort of

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<v Speaker 1>weighing the charges against him the way a judge would

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<v Speaker 1>be weighing the charges against somebody else. Do you believe that,

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<v Speaker 1>if confirmed, Judge Kavanaugh would make a good Justice of

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<v Speaker 1>the Supreme Court? I do. I think he is extremely

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<v Speaker 1>well qualified, has been a solid judge on the d

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<v Speaker 1>C circuit um. You know. I the real question in

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<v Speaker 1>my mind has been, uh, whether we would get evidence

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<v Speaker 1>which suggested that he was guilty of some of these

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<v Speaker 1>very serious offenses that have been charged against him. If

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<v Speaker 1>that were the case, then I would say he would

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<v Speaker 1>be disqualified. But hey, I don't think that that evidence

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<v Speaker 1>has materialized, and be I think absent such evidence, UM,

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<v Speaker 1>he is an extraordinarily well qualified nominee to Supreme Court.

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<v Speaker 1>You believe that Merrick Garland would have made a good

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<v Speaker 1>Justice of the Supreme Court? I do. I think that

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<v Speaker 1>he would have been at you know, perfectly well qualified

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<v Speaker 1>nominee um easily um of the same caliber as Stephen

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<v Speaker 1>Brier and Sonya Soto mayor uh and so forth, and

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<v Speaker 1>and would have very likely voted with them the vast

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<v Speaker 1>majority of the time. So given that, do you in

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<v Speaker 1>any way sort of begrudge the political nature of what

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<v Speaker 1>these hearings have become because of that situation. I certainly

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<v Speaker 1>understand many of the passions that Senate Democrats have brought

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<v Speaker 1>to this, which are not limited to anger over the

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<v Speaker 1>Garland situation, but also to their genuine belief in many

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<v Speaker 1>cases in Kavanaugh's guilt of these charges, and their passionate

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<v Speaker 1>over issues like Roe v. Wade. Um. When it comes

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<v Speaker 1>to specifically the Garlands situation, I think, look, a Senate

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<v Speaker 1>Senate Democrats are perfectly within their rights if they wish

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<v Speaker 1>to not move ahead on the Kavanaugh nomination, if they

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<v Speaker 1>wish to vote him down, um, if they wish to

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<v Speaker 1>refuse to meet him the way that Republicans refused to

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<v Speaker 1>meet even with Merrick Garland. Uh. But of course, you know,

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<v Speaker 1>if you believe that what the way they're acting with

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<v Speaker 1>respect of these charges is unjustified, I think it's very

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<v Speaker 1>different to assassinate a man's character. Um. That didn't happen

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<v Speaker 1>with Judge Garland, which is a good thing. Uh. And

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<v Speaker 1>I do believe that there has been some reckless behavior

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<v Speaker 1>with respect to Judge Kavanaugh. Hold on a second reckless behavior,

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<v Speaker 1>I want to home in on that, because what exactly

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<v Speaker 1>are you talking about considering the fact that it seemed

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<v Speaker 1>like it was only that a Washington Post reporter reached

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<v Speaker 1>out to Christine Forward, that she came forward with her story,

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<v Speaker 1>and otherwise there was sort of she asked for for privacy.

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<v Speaker 1>She didn't want these made public, these allegations. Well, there

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<v Speaker 1>are a couple of things. First of all, so how

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<v Speaker 1>did the Washington Post get tipped off in the first place? Two?

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<v Speaker 1>Reach out? Uh? And you know, if you listen to um,

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<v Speaker 1>not just the Post, but the Intercept reporter, um it,

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<v Speaker 1>he's ruled out pretty much everybody but a Democratic congresswoman

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<v Speaker 1>Anna su. But beyond that, you've got Democratic senators who

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<v Speaker 1>are saying um and said in advance and okay, let

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<v Speaker 1>me let me back up a second. I think it

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<v Speaker 1>would have been I think it was wrong for people

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<v Speaker 1>to pre judge on either side of this issue. And

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<v Speaker 1>some Republicans said, before they heard either of them, they

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<v Speaker 1>were still with Kavanaugh, And some Democratic senators said, before

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<v Speaker 1>they heard either of them, they believed he was guilty.

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<v Speaker 1>That's what Senator Blumenthall said, for example. So Senator her

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<v Speaker 1>own No basically said the higher male sex should shut up, right. Okay,

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<v Speaker 1>So this is incredibly emotionally charged on all sides, both

0:13:06.400 --> 0:13:10.319
<v Speaker 1>from a political perspective as well as just an emotional perspective.

0:13:10.400 --> 0:13:13.560
<v Speaker 1>I'm wondering from from your point of view as a

0:13:13.640 --> 0:13:17.319
<v Speaker 1>judicial expert, someone who's been following the courts for your lifetime,

0:13:18.000 --> 0:13:21.800
<v Speaker 1>I'm just wondering how this whole process will affect the

0:13:21.800 --> 0:13:26.520
<v Speaker 1>credibility of the Supreme Court going forward. Well, it is

0:13:26.559 --> 0:13:29.040
<v Speaker 1>certainly not the kind of thing that is going to

0:13:29.120 --> 0:13:33.080
<v Speaker 1>raise public esteem for the courts. And I suspect that

0:13:33.120 --> 0:13:35.480
<v Speaker 1>there's not a single justice as the Supreme Court from

0:13:35.559 --> 0:13:37.880
<v Speaker 1>Sonya Soto, mayor on the left, to Clarence Thomas on

0:13:37.880 --> 0:13:41.280
<v Speaker 1>the right, who looked at the spectacle in the Senate

0:13:41.440 --> 0:13:43.480
<v Speaker 1>over the last week and said, you know, we really

0:13:43.480 --> 0:13:48.080
<v Speaker 1>need to bring cameras into our courtroom. Um. But the

0:13:48.120 --> 0:13:52.760
<v Speaker 1>emotions of the moment do often passed. So there were

0:13:52.800 --> 0:13:55.920
<v Speaker 1>a lot of emotions on both sides surrounding the Clarence

0:13:55.960 --> 0:14:02.760
<v Speaker 1>Thomas confirmation. You admittedly those less serious charges at that time,

0:14:03.280 --> 0:14:08.120
<v Speaker 1>and basically that didn't affect the long run, uh public

0:14:08.480 --> 0:14:12.439
<v Speaker 1>sentiment towards the court. Um. So we we I think

0:14:12.440 --> 0:14:14.319
<v Speaker 1>we have to get a little bit of distance from

0:14:14.360 --> 0:14:16.800
<v Speaker 1>these events before we figure that out. All right, We're

0:14:16.800 --> 0:14:18.760
<v Speaker 1>gonna leave it there, but thanks very much for being

0:14:18.800 --> 0:14:21.920
<v Speaker 1>with us. Remesh Panuru is a senior editor at The

0:14:22.040 --> 0:14:26.800
<v Speaker 1>National Review and a Bloomberg opinion columnist, speaking on the

0:14:27.200 --> 0:14:31.800
<v Speaker 1>ongoing h I Guess investigation into Brett Kavanaugh and the

0:14:31.800 --> 0:14:37.720
<v Speaker 1>allegations of sexual assault and the potential for Brett Kavanaugh's

0:14:37.760 --> 0:14:41.080
<v Speaker 1>nomination to the Supreme Court to go to the full

0:14:41.160 --> 0:14:55.520
<v Speaker 1>Senate for a vote. We are awaiting comments from President Trump,

0:14:55.520 --> 0:14:58.520
<v Speaker 1>who will be speaking about the renegotiated NAFTA agreements in

0:14:58.560 --> 0:15:02.240
<v Speaker 1>the Rose Garden at the White House, which will occur momentarily.

0:15:02.560 --> 0:15:04.120
<v Speaker 1>In the meantime, I want to bring in Josh Glue.

0:15:04.160 --> 0:15:07.040
<v Speaker 1>He is White House editor for Bloomberg. Josh, what are

0:15:07.040 --> 0:15:10.440
<v Speaker 1>we expecting to hear from President Trump right now? Well,

0:15:10.480 --> 0:15:14.000
<v Speaker 1>we're I think we're expecting to uh hear about what

0:15:14.080 --> 0:15:18.480
<v Speaker 1>a great achievement this was. You know, he's been putting

0:15:18.520 --> 0:15:22.400
<v Speaker 1>this up. It's a He's gotten a lot of criticism

0:15:22.520 --> 0:15:26.000
<v Speaker 1>for his stance on NAFTA, and there were a lot

0:15:26.040 --> 0:15:27.760
<v Speaker 1>of doubts that anything would come through, and he's going

0:15:27.800 --> 0:15:31.320
<v Speaker 1>to portray this as a huge victory, even though really

0:15:31.560 --> 0:15:34.920
<v Speaker 1>money of the revisions they're actually making are quite modest.

0:15:35.480 --> 0:15:38.760
<v Speaker 1>So it's unclear what this means for him politically, but

0:15:38.880 --> 0:15:42.520
<v Speaker 1>he's gonna try and make the most of it for sure. Josh.

0:15:43.040 --> 0:15:45.960
<v Speaker 1>Part of the deal has to do with Canada's dairy

0:15:46.000 --> 0:15:49.800
<v Speaker 1>market for US farmers. Correct. That's right. That's been a

0:15:49.840 --> 0:15:53.600
<v Speaker 1>major sticking point the negotiations for uh for some time.

0:15:53.640 --> 0:15:57.880
<v Speaker 1>And President Trump, on his typical stump piece of stump speeches,

0:15:58.320 --> 0:16:03.720
<v Speaker 1>will go out and talk about that that uh, you know,

0:16:04.000 --> 0:16:08.960
<v Speaker 1>American product, American dairy products in Canada more expensive due

0:16:08.960 --> 0:16:12.880
<v Speaker 1>to tariffs, uh and calling it very unfair. You know,

0:16:13.120 --> 0:16:17.840
<v Speaker 1>he is. The farmers are really a group that's been

0:16:18.880 --> 0:16:20.800
<v Speaker 1>you know, stuck in the middle of all this his

0:16:20.840 --> 0:16:25.680
<v Speaker 1>trade policy. Um, and they've been targeted by China with

0:16:25.760 --> 0:16:30.120
<v Speaker 1>the retaliatory tariffs, and uh, he really needed to do

0:16:30.200 --> 0:16:32.800
<v Speaker 1>something here to reach out to people who are really

0:16:32.840 --> 0:16:35.600
<v Speaker 1>his core constituency. All right, So, Josh, what I would

0:16:35.600 --> 0:16:37.880
<v Speaker 1>love to hear from you is what the shakeout is

0:16:37.880 --> 0:16:40.480
<v Speaker 1>From the analysts that have been passing through the details

0:16:40.480 --> 0:16:44.400
<v Speaker 1>since they were released of this renegotiated agreement. Do people

0:16:44.440 --> 0:16:47.360
<v Speaker 1>think that it will increase production even at the margins

0:16:47.440 --> 0:16:50.120
<v Speaker 1>in the US and will increase wages. Do they think

0:16:50.120 --> 0:16:53.680
<v Speaker 1>that it will shift more production elsewhere? What's the what's

0:16:53.680 --> 0:16:56.640
<v Speaker 1>sort of the breakdown here? Well, I actually I think

0:16:56.680 --> 0:17:00.320
<v Speaker 1>the jury is still out on that. We Uh it's

0:17:00.320 --> 0:17:03.440
<v Speaker 1>a bit early to say, and I think you're it's

0:17:04.000 --> 0:17:07.040
<v Speaker 1>right now, You're gonna have to tease apart what we're

0:17:07.080 --> 0:17:10.000
<v Speaker 1>what's uh, what's an analysis and what's more of a

0:17:10.040 --> 0:17:12.720
<v Speaker 1>political thing, because right now in Washington, the President is

0:17:12.760 --> 0:17:15.640
<v Speaker 1>going to put as as the heart of political spin

0:17:15.640 --> 0:17:18.439
<v Speaker 1>on it as he can. Um, these are these are

0:17:18.440 --> 0:17:21.600
<v Speaker 1>things he's been you know, Democrats have tried to break

0:17:21.680 --> 0:17:24.520
<v Speaker 1>him over the coals on these and uh, even many

0:17:25.400 --> 0:17:28.560
<v Speaker 1>people in his own party have been unsupportive of the stance.

0:17:28.720 --> 0:17:35.600
<v Speaker 1>So uh, it's likely that, as with most or any

0:17:35.840 --> 0:17:38.480
<v Speaker 1>disruption to a trade agreement, they are gonna be winners

0:17:38.480 --> 0:17:42.000
<v Speaker 1>and losers. And um, we're gonna have to see how

0:17:42.040 --> 0:17:44.520
<v Speaker 1>that shakes out. But the analysis that I've seen so

0:17:44.640 --> 0:17:48.359
<v Speaker 1>far is not that he has achieved some major victory

0:17:48.920 --> 0:17:52.960
<v Speaker 1>here for the for for U. S. Exporters, Josh. Just

0:17:53.080 --> 0:17:58.600
<v Speaker 1>to continue the political theme, this pact or treaty would

0:17:58.640 --> 0:18:02.480
<v Speaker 1>have to be approved by the US Congress. That's right,

0:18:02.840 --> 0:18:07.800
<v Speaker 1>And um, you know it's unclear the I think most

0:18:07.840 --> 0:18:10.240
<v Speaker 1>of Congress wanted some kind of deep you know, I

0:18:10.240 --> 0:18:13.439
<v Speaker 1>don't I don't know if left to Congress that there

0:18:13.480 --> 0:18:17.879
<v Speaker 1>would have been much of a disruption to so UM,

0:18:18.160 --> 0:18:20.000
<v Speaker 1>I don't know that there's going to be a huge

0:18:20.000 --> 0:18:23.720
<v Speaker 1>bar for that to happen. But we'll see you never

0:18:23.840 --> 0:18:26.920
<v Speaker 1>it's if there's one thing that's unpredictable here, it's which

0:18:26.920 --> 0:18:28.720
<v Speaker 1>way Congress is going to go on any given issue

0:18:28.800 --> 0:18:31.600
<v Speaker 1>right now. You know, one question is how much political

0:18:31.640 --> 0:18:36.359
<v Speaker 1>capital was spent or exhausted during this process. What is

0:18:36.400 --> 0:18:40.320
<v Speaker 1>the relationship between the US and Canada emerging from this renegotiation.

0:18:41.960 --> 0:18:46.040
<v Speaker 1>That's a great question, and it's really hard to handicap

0:18:46.160 --> 0:18:52.040
<v Speaker 1>because yes, there this was a cause for a pretty

0:18:52.080 --> 0:18:57.640
<v Speaker 1>significant rift between UM, President Trump and Prime Minister Trudeau

0:18:57.760 --> 0:19:01.520
<v Speaker 1>in Canada and on you usual one, right, this is

0:19:01.560 --> 0:19:06.439
<v Speaker 1>a longtime ally of the United States neighbor. Uh. You know,

0:19:06.520 --> 0:19:11.040
<v Speaker 1>there's never really been any major UH issue with Canada,

0:19:11.080 --> 0:19:15.240
<v Speaker 1>and suddenly it became quite heated and a little bit nasty. UM.

0:19:15.640 --> 0:19:19.919
<v Speaker 1>If you you know, if you think about this in

0:19:19.960 --> 0:19:23.919
<v Speaker 1>the larger context of how Trump deals with other leaders

0:19:23.960 --> 0:19:28.240
<v Speaker 1>in general. UM, you know, on the one hand and

0:19:28.240 --> 0:19:31.959
<v Speaker 1>and other politicians quite frankly, you know, he when he

0:19:32.119 --> 0:19:34.960
<v Speaker 1>is in some sort of negotiation, he will go all

0:19:35.000 --> 0:19:40.639
<v Speaker 1>out insult them, you know, a bare knuckle fight. But

0:19:40.720 --> 0:19:43.760
<v Speaker 1>then he'll turn around and say like, oh, I love

0:19:43.840 --> 0:19:46.120
<v Speaker 1>Justin Trudeau or you know he haven't done that yet,

0:19:46.160 --> 0:19:50.800
<v Speaker 1>but um he does that with uh President She of China.

0:19:51.320 --> 0:19:55.160
<v Speaker 1>He's done it with political foes where they were at

0:19:55.160 --> 0:19:58.040
<v Speaker 1>each other's other's throats during a campaign and then afterwards

0:19:58.080 --> 0:20:02.080
<v Speaker 1>they've amended fences and work together. Know, so, um, he

0:20:02.200 --> 0:20:04.400
<v Speaker 1>plays it both ways, and it's hard to know how

0:20:04.520 --> 0:20:09.199
<v Speaker 1>lasting any grudge will be. Well, Josh Galu, thanks very

0:20:09.280 --> 0:20:11.480
<v Speaker 1>much for being with us. Just I know you're going

0:20:11.560 --> 0:20:15.160
<v Speaker 1>to be listening to the president's comments. We are awaiting

0:20:15.560 --> 0:20:20.200
<v Speaker 1>President Donald Trump walking out into the Rose Garden in Washington,

0:20:20.320 --> 0:20:25.680
<v Speaker 1>d C. Thanks for listening to the Bloomberg P and

0:20:25.800 --> 0:20:28.840
<v Speaker 1>L podcast. You can subscribe and listen to interviews at

0:20:28.880 --> 0:20:33.320
<v Speaker 1>Apple Podcasts, SoundCloud, or whatever podcast platform you prefer. I'm

0:20:33.359 --> 0:20:36.800
<v Speaker 1>Pim Fox. I'm on Twitter at pim Fox. I'm on

0:20:36.840 --> 0:20:40.119
<v Speaker 1>Twitter at Lisa Abramo. It's one before the podcast. You

0:20:40.119 --> 0:20:42.679
<v Speaker 1>can always catch us worldwide on Bloomberg Radio.