WEBVTT - Virginia's McAuliffe Criticizes Trump's First Month 0:00:00.120 --> 0:00:02.920 Brought you by Bank of America, Mary Lynch. Investing in 0:00:03.000 --> 0:00:07.840 local communities, economies and a sustainable future. That's a power 0:00:08.080 --> 0:00:12.360 of global connections. Mary Lynch, Pierce Fenner and Smith Incorporated 0:00:12.760 --> 0:00:27.400 member s I p C. Welcome to the Bloomberg Surveillance Podcast. 0:00:27.840 --> 0:00:31.520 I'm Tom Keene with David Gura. Daily we bring you 0:00:31.560 --> 0:00:36.600 insight from the best in economics, finance, investment, and international relations. 0:00:37.000 --> 0:00:41.600 Find Bloomberg Surveillance on iTunes, SoundCloud, Bloomberg dot Com, and 0:00:41.680 --> 0:00:49.360 of course on the Bloomberg Joe Quillin with US with 0:00:49.520 --> 0:00:53.520 US Trust Merry Lynch and working on a broader thematic strategy. 0:00:53.840 --> 0:00:56.440 Let me come to the theme. I was having dinner 0:00:56.960 --> 0:01:00.600 in Mayfair the evening of June twe on the fourth 0:01:01.200 --> 0:01:04.000 ten am on Junee, the world came to an end 0:01:04.440 --> 0:01:07.679 for England, for Britain, for the United Kingdom. And then 0:01:07.720 --> 0:01:10.760 the next morning was a total uproar. And at seven 0:01:10.760 --> 0:01:13.959 pm on a summer's evening, I had a dinner there. 0:01:14.120 --> 0:01:18.119 The world was gonna end. November eight, the world's gonna 0:01:18.280 --> 0:01:22.280 end once again. Here we are at twenty eight hundred. 0:01:22.840 --> 0:01:25.880 So when do I know when to get out? I 0:01:25.880 --> 0:01:28.120 think that's a great question Tom in the sense that 0:01:29.840 --> 0:01:33.840 the politicians have to pay attention to the populist movement 0:01:34.280 --> 0:01:37.440 that's angry a lot of anks. Yet the key is 0:01:37.920 --> 0:01:41.479 they're they're responding to us. So you remember austerity. Now 0:01:41.520 --> 0:01:44.520 we've got more fiscal spending. So when we if we 0:01:44.640 --> 0:01:48.840 do not get these policies in place that promote growth 0:01:48.840 --> 0:01:52.400 trickled down and I hate that concept because it rarely happens, 0:01:52.680 --> 0:01:55.880 then we're gonna see more pressure on the politicians to 0:01:55.920 --> 0:01:57.840 spend more. And I think the markets will take that 0:01:58.160 --> 0:01:59.960 the wrong way and here we go, we roll over. 0:02:00.280 --> 0:02:04.280 So's it's the key, the politics responding to the populism 0:02:04.320 --> 0:02:07.320 that creates the growth that kind of pacifies and pushes 0:02:07.360 --> 0:02:09.720 back kind of the day of reckoning when in particularly 0:02:09.800 --> 0:02:12.440 in your credit markets. So we're not there yet. But Joe, 0:02:12.440 --> 0:02:14.280 why are we seeing these record highs for in disease? 0:02:14.400 --> 0:02:17.520 Is it really unfundamentals or it's still that cheap money 0:02:17.520 --> 0:02:20.520 out there, Francy Nancy, It's combination. It is. It is 0:02:20.960 --> 0:02:23.680 cheap money, there's no doubt about that. It's the fundamentals. 0:02:23.720 --> 0:02:26.680 It's a cyclical upswing and it's also in particular the 0:02:26.760 --> 0:02:31.400 expectation that dabos Man will respond to this popular populace 0:02:31.520 --> 0:02:36.440 uprising and make it happen. Pacify the workers, everyone that's angry. Trickle. 0:02:36.600 --> 0:02:39.400 You're seeing the employment numbers gradually improve and there's a 0:02:39.440 --> 0:02:42.959 lot of noise there. So it's the expectation that the 0:02:44.280 --> 0:02:48.600 simulus is coming. Alright, what does it take to correct or, 0:02:48.680 --> 0:02:50.120 as you say, to see a little bit of a 0:02:50.160 --> 0:02:53.000 pullback from these in disease. I think it's going to 0:02:53.080 --> 0:02:55.480 be profit taking. Um, you know, I think a lot 0:02:55.480 --> 0:02:58.800 of hedge funds from Francine is too young to remember 0:02:58.840 --> 0:03:02.560 what that phrases. I have not, I have not. I 0:03:02.600 --> 0:03:06.639 have not heard that phrase seven years one time. I 0:03:06.680 --> 0:03:08.720 think you know this cliche, you know, selling may and 0:03:08.760 --> 0:03:11.000 go away. I think that's gonna be come with a vengeance. 0:03:11.160 --> 0:03:13.120 So we have calling of the twins. Do you have 0:03:13.160 --> 0:03:16.680 a tape recorder on? We just said Millard, Mr Quinlan 0:03:16.840 --> 0:03:19.079 here say selling may and go Away's gonna work this year. 0:03:19.280 --> 0:03:21.919 I'm really thinking the last four years in a row, 0:03:21.960 --> 0:03:24.280 it's been a total fraud. It's been a total all 0:03:24.360 --> 0:03:26.400 But this year from from the election, I think people 0:03:26.400 --> 0:03:28.840 will take their profits and the key will be, well, 0:03:28.840 --> 0:03:30.800 what's gonna happen in June July. When it comes to 0:03:30.800 --> 0:03:33.639 the actual policy background. If we don't get the policies 0:03:33.720 --> 0:03:36.080 coming forward, then then we're gonna have some real prompts 0:03:36.080 --> 0:03:37.920 and the critical moment will be in the summer. Help 0:03:37.960 --> 0:03:40.240 Francine here when we got you for the whole half hour, 0:03:40.280 --> 0:03:43.760 which is great. Help Francing Rechoir with your idea of 0:03:43.800 --> 0:03:48.440 a global lift. She is so weighted down by the 0:03:48.480 --> 0:03:52.440 collapse of Italy, all the political stuff, etcetera. She was 0:03:52.480 --> 0:03:55.480 weighted down by Burbery, had no plaid and there in 0:03:55.520 --> 0:04:00.240 their show this ye. But but come on, Joe, help 0:04:00.280 --> 0:04:03.240 me here with the global lift. Nobody's buying you. Well 0:04:03.320 --> 0:04:05.160 at the time, the numbers are there. I mean, you 0:04:05.200 --> 0:04:08.200 see the p m I numbers. You see China stabilizing, Brazil, 0:04:08.320 --> 0:04:11.880 Russia better. Um, you know the developed markets are playing 0:04:11.920 --> 0:04:16.120 along in Japan's numbers, so I think. But the monetary 0:04:16.200 --> 0:04:18.400 stimulus has been out there for so long as you 0:04:18.520 --> 0:04:21.239 know that it does, it's it's not gonna it's finally working. 0:04:21.480 --> 0:04:25.279 I'm not looking for like they're a bit better, but 0:04:25.279 --> 0:04:28.200 but they're not what we saw ten fifteen years ago. 0:04:28.240 --> 0:04:31.320 We're never going back to pre crisis levels. Or are 0:04:31.360 --> 0:04:34.240 we now? I would never say never, Francy and I 0:04:34.320 --> 0:04:36.640 agree with you. It's gonna be more muted growth growth. 0:04:36.680 --> 0:04:39.560 But if we can get the global GDP growth average 0:04:39.600 --> 0:04:41.520 back to three and a half three point seven percent 0:04:41.600 --> 0:04:44.560 in that range, have the emerging market stabilized, then we 0:04:44.600 --> 0:04:46.880 can kind of plod forward. And I would I would 0:04:46.920 --> 0:04:48.640 agree in the sense that maybe the markets are giving 0:04:48.680 --> 0:04:51.359 too much credit to the policy makers and the economic background. 0:04:51.640 --> 0:04:54.320 But earnings are good. I mean, corporations are doing a 0:04:54.360 --> 0:04:58.000 great job managing their expenses. They're using technology to be 0:04:58.080 --> 0:05:02.039 more productive. That you can't discount that either. Okay, but 0:05:02.240 --> 0:05:04.240 how do you deal? And and Tom and I were 0:05:04.279 --> 0:05:06.160 in Davos and it was the Davos Man or the 0:05:06.200 --> 0:05:10.080 Devils Woman. Looking at this new world order where globalization 0:05:10.680 --> 0:05:13.159 is not the name of the game anymore. When do 0:05:13.279 --> 0:05:16.760 markets realize, Well, I don't think Francy and I haven't 0:05:16.880 --> 0:05:19.200 thrown in the towel on globalization. I think we've kind 0:05:19.200 --> 0:05:21.840 of hit the pause button, and perhaps we kind of 0:05:21.880 --> 0:05:24.000 we've got to reconfigure it or rethink it, or kind 0:05:24.000 --> 0:05:27.800 of like make it more broader, more integrated. So I 0:05:28.279 --> 0:05:32.360 the markets have certainly not priced in de globalization. If 0:05:32.400 --> 0:05:34.440 they had, then we'd have a bigger problem. So we 0:05:34.520 --> 0:05:37.240 gotta look. You know, actually global trade volumes are picking up, 0:05:38.080 --> 0:05:41.920 trade flows are increasing, m and A globally is picking up. 0:05:42.080 --> 0:05:45.719 But I think there's too much I would say optimism 0:05:45.760 --> 0:05:48.599 around the policy backdrop, and so if there's any failure there, 0:05:48.600 --> 0:05:50.600 we've got problems. Let me do this for Francy, because 0:05:50.600 --> 0:05:53.440 fancy and I know you're based in Sterling. The doll 0:05:53.560 --> 0:05:58.840 this year, if you're in London up SPI underperformed. It's 0:05:58.920 --> 0:06:02.040 up only thirty six percent. The foot seas up twenty 0:06:03.400 --> 0:06:07.920 If you invested in Tokyo from Sterling, you're up thirty 0:06:07.960 --> 0:06:13.160 four percent. I mean, it's a most unloved, ginormous bullmarket, Joe, 0:06:13.440 --> 0:06:15.800 I've ever seen Francy. Get it one more question and 0:06:15.800 --> 0:06:18.920 you're not gonna do some breaking news. Yeah, what the currencies? 0:06:19.240 --> 0:06:20.599 You know, when you look at in the season around 0:06:20.600 --> 0:06:22.080 the world, what's the currency you want to be in? 0:06:22.839 --> 0:06:24.840 Um the Mexican pay So, I mean we've I've been 0:06:24.839 --> 0:06:26.440 saying that for quite some time. I think it's you know, 0:06:26.560 --> 0:06:29.320 it was oversold. I still think there's more upside. Francine 0:06:29.640 --> 0:06:32.360 at the Quad London I'm Tom keenan New York with 0:06:32.480 --> 0:06:35.760 this Joe Quinlan. We continue our discussion, let's run it 0:06:35.839 --> 0:06:38.800 over to economics. I mean just Cheer Yelling is she's 0:06:38.839 --> 0:06:42.840 central banker to the world, and I think a question 0:06:42.880 --> 0:06:46.680 for the weekend reading. Does Cheer Yelling care about the 0:06:46.760 --> 0:06:50.800 record lows in the German two year My guesses she does. Well, 0:06:50.920 --> 0:06:53.520 she she has to. You're you're right, and it's interesting 0:06:53.600 --> 0:06:56.719 we haven't talked much about the FED thus far this morning. 0:06:57.279 --> 0:07:00.279 I think the feed is looking to looking at the data, 0:07:00.360 --> 0:07:02.880 saying they're gonna move perhaps in March, if not June, 0:07:02.920 --> 0:07:05.480 maybe twice this year put some ammunition back in the bank, 0:07:05.600 --> 0:07:08.560 so they have that ready, but certainly worried about the 0:07:08.960 --> 0:07:10.840 numbers coming out of Germany. But I do think what 0:07:10.920 --> 0:07:12.400 we'll have to see how that plays out. And I'm 0:07:12.440 --> 0:07:15.520 sure she's worried about distress out of Italy in Spain 0:07:15.520 --> 0:07:19.400 that's driving those flows in the German Say paper, Joe, 0:07:19.400 --> 0:07:22.120 how would you look at political risk in Europe? Does 0:07:22.160 --> 0:07:25.480 it play out two weeks before the French election? Does 0:07:25.520 --> 0:07:29.120 it wait until something ugly happens? To talk me through 0:07:29.120 --> 0:07:31.400 the psychology of the markets right now? Well, I mean, 0:07:31.560 --> 0:07:34.360 we're looking at the Dutch elections, see how that plays out. 0:07:34.400 --> 0:07:36.840 Watch the currency. I mean, the currencies is always a 0:07:36.880 --> 0:07:39.640 canary in a coal mine. So I think, you know 0:07:39.800 --> 0:07:44.040 we're here, here's francing. We should not be so surprised 0:07:44.040 --> 0:07:46.280 in two thousand and seventeen as we were in sixteen. 0:07:46.280 --> 0:07:48.840 If we do get these political shocks quote unquote, So 0:07:49.080 --> 0:07:52.200 the markets are pricing in perhaps being a little bit 0:07:52.240 --> 0:07:55.600 more cautious, more risk management. So if Lapen or if 0:07:55.600 --> 0:07:59.120 there's any kind of a populous movement that gains traction 0:07:59.280 --> 0:08:01.960 in Europe this year, that should not be so surprising 0:08:02.000 --> 0:08:05.640 to investors. So maybe that mutes the reaction. What if 0:08:05.640 --> 0:08:08.480 we're jumping at shadows? Joe. We had a brilliant piece 0:08:08.520 --> 0:08:11.280 by Mark Gilbert, one of our Bloomberg View columnists, saying, 0:08:11.320 --> 0:08:14.560 what if Sen meant that the markets are jumping at 0:08:14.560 --> 0:08:19.400 shadows because now we're pricing political risk everywhere when there's none. Well, 0:08:19.400 --> 0:08:23.200 then that perhaps means that we have this cyclical rebound, 0:08:23.880 --> 0:08:26.920 we get the policy pro growth policy put in place. 0:08:26.960 --> 0:08:29.960 Remember we've had too much austerity and too much dependence 0:08:30.000 --> 0:08:33.840 on monetary policy since the crisis. If we do if 0:08:33.880 --> 0:08:35.840 it's a head fake, but we still get the fiscal 0:08:35.920 --> 0:08:39.880 stimulus that tells me that we've got decent overall nominal 0:08:40.040 --> 0:08:42.959 global growth, which is gonna be good for earnings and equities. 0:08:43.360 --> 0:08:47.040 When I look, Joe h the idea of I got 0:08:47.040 --> 0:08:50.920 a four O one K. And let's assume that our 0:08:50.960 --> 0:08:55.240 audience is behind those numbers I quoted earlier. How do 0:08:55.280 --> 0:08:57.920 you catch up? I mean, we've been here before. There's 0:08:57.920 --> 0:09:01.040 been other bull markets where we've been behind. But I 0:09:01.120 --> 0:09:04.319 don't believe I've ever seen you know, all the different 0:09:04.400 --> 0:09:08.880 theories and efficient markets and allocation. Come on, we just 0:09:08.920 --> 0:09:11.800 want to I just can I just do the sp 0:09:12.720 --> 0:09:14.920 And a lot of people can't say that. How do 0:09:14.960 --> 0:09:17.400 you catch up? I mean, don't swing for the fences. 0:09:17.520 --> 0:09:19.520 You and you have to save, right, I mean you 0:09:19.640 --> 0:09:22.360 have to have the capital to make capital. So we're 0:09:22.400 --> 0:09:26.680 looking at kind of these long term divotting growers. Payers 0:09:27.080 --> 0:09:29.800 don't panic the answers. We gotta put a lot more money. 0:09:29.920 --> 0:09:31.720 We gotta put a lot more money, you know, and 0:09:31.720 --> 0:09:34.360 and that takes away from discretionary spending. That's just where 0:09:34.360 --> 0:09:36.120 we're at, and I don't think we're gonna make it. 0:09:36.200 --> 0:09:38.360 Francine is the United Kingdom. The same. I have no 0:09:38.440 --> 0:09:42.160 idea is the United Kingdom the same and that everybody's 0:09:42.200 --> 0:09:46.600 under invested like we have off the Arisa Act of Well, 0:09:46.600 --> 0:09:48.760 I'm not sure. It's a great question for Joe. The 0:09:49.040 --> 0:09:51.280 I guess the million dollar question Joe is are we 0:09:51.400 --> 0:09:54.600 under invested because of bregsit or did it happen before? 0:09:55.520 --> 0:09:58.200 I think perhaps before? And I do think you know, 0:09:58.880 --> 0:10:02.760 this is a great study economists. How much did monetary 0:10:02.800 --> 0:10:07.000 policy post a crisis really create income inequality? Where inflated 0:10:07.320 --> 0:10:10.240 the asset values for people who own the assets versus 0:10:10.240 --> 0:10:12.640 the folks who didn't and created the spread which then 0:10:12.679 --> 0:10:16.160 created the ankst and anger related populism. Are talking about 0:10:16.160 --> 0:10:18.400 that one more question and offer that William Gross has 0:10:18.440 --> 0:10:21.880 told us with Jana's Capital that the financial repression will 0:10:21.880 --> 0:10:25.240 continue for years, if not decades. Are you saying at 0:10:25.280 --> 0:10:28.920 some point we will normalize and we will see assets 0:10:29.000 --> 0:10:33.240 subdue and the income disparity will lessen. Is the rich 0:10:33.320 --> 0:10:36.600 get poorer? Not necessarily rich get poor, but we kind 0:10:36.600 --> 0:10:40.960 of have the pie distribution differently. We're gonna have to 0:10:41.120 --> 0:10:45.199 bring along the folks that are left behind the populace uprising, 0:10:45.600 --> 0:10:47.640 or you should be all in the cash think of 0:10:47.640 --> 0:10:49.880 it that way. So the policy responses to be more 0:10:49.880 --> 0:10:53.760 pro growth, more stimulus, and that for a while medium 0:10:53.840 --> 0:10:55.520 term is good for equities. But I think this is 0:10:55.520 --> 0:10:58.120 one of those markets between now and when you know 0:10:58.280 --> 0:11:00.120 you you want to get out. We had a lot 0:11:00.120 --> 0:11:01.520 of clients saying that Joe I can't do two th 0:11:01.840 --> 0:11:04.000 eight again, and that's exactly what we got to keep 0:11:04.000 --> 0:11:06.120 in a COLLI thanks for the time. I greatly appreciate 0:11:06.160 --> 0:11:08.560 your Quidlin with a lot going on in Europe this morning. Uh, 0:11:08.920 --> 0:11:25.360 he is with us trust Mary Lynch and thematic strategy. Francine, 0:11:25.440 --> 0:11:28.360 what's your key in sight this morning? What? What did 0:11:28.400 --> 0:11:30.960 he learned? Excuse me through the week? Well, you know 0:11:31.000 --> 0:11:33.800 what we haven't talked about today and I learned today 0:11:33.800 --> 0:11:36.559 because of this by election. You mentioned it briefly, tom 0:11:36.559 --> 0:11:39.400 So the UK Prime Minister Theresa May. Um you have 0:11:39.520 --> 0:11:41.920 a lot of investors saying she won't last a year. 0:11:41.960 --> 0:11:45.080 That's what George Sorrows told me in Davos, because she's 0:11:45.080 --> 0:11:48.920 pushing for this clean cut heart bregsit and then yesterday 0:11:49.000 --> 0:11:53.040 and today she demonstrated her dominance of the political landscape 0:11:53.080 --> 0:11:55.840 by winning a by election. Now a by election is 0:11:56.000 --> 0:11:59.800 basically a small election in the middle of an election cycle. 0:12:00.400 --> 0:12:05.280 It's extremely rare Tom almost impossible for the government in 0:12:05.320 --> 0:12:09.720 place to win it, and she did just that. I'm 0:12:09.720 --> 0:12:12.400 glad you brought that up. Is this like a mid 0:12:12.559 --> 0:12:15.880 what we call on mid term election? Yes, it's it's 0:12:15.920 --> 0:12:18.040 not really a mid term, but when somebody steps down 0:12:18.040 --> 0:12:21.000 of a seat, then you have an election that could 0:12:21.080 --> 0:12:23.920 be just one region or or one part of the UK. 0:12:24.880 --> 0:12:27.880 But historically it's very rare that the party in charge 0:12:27.920 --> 0:12:31.120 wins in very good. Let me bring in now someone 0:12:31.520 --> 0:12:35.439 who is really a joy to speak to, Terry mccauliffe. 0:12:35.840 --> 0:12:39.400 He has been important for his Democratic Party on too 0:12:39.440 --> 0:12:43.120 many fronts. It now has maybe the best job in 0:12:43.200 --> 0:12:46.640 political America. I could say this because within all the 0:12:46.679 --> 0:12:52.000 political turmoil Governor mccauliffe in Washington, and really in my 0:12:52.120 --> 0:12:56.319 healing after the election turmoil, I'm reading everything on Jefferson 0:12:56.400 --> 0:12:59.439 i can. And so you get the bathe and all 0:12:59.480 --> 0:13:04.600 the legacy of Thomas Jefferson in Virginia, beginning with your 0:13:04.600 --> 0:13:08.080 wonderful executive mansion in Richmond, Virginia, which goes back to 0:13:08.520 --> 0:13:13.240 near eighteen twelve, the famous Alexander Paris House that you 0:13:13.600 --> 0:13:17.520 that you have there your prison, and I'm gonna ask you, Terry, 0:13:17.640 --> 0:13:22.000 some tough, delicate questions. Did Mr Trump win the election 0:13:22.840 --> 0:13:26.520 or did the Secretary State? Did Secretary Clinton lose the election? 0:13:26.960 --> 0:13:31.320 Which is it? Listen, you gotta give President Trump people 0:13:31.320 --> 0:13:36.720 on the election. I mean, uh, hindsight, I would make 0:13:36.720 --> 0:13:40.600 the argument that, uh, the our campaign should probably have 0:13:40.679 --> 0:13:44.120 leaned it more on economics, job creation, talk about all 0:13:44.160 --> 0:13:47.400 the great things that had happened. But you know, listen, 0:13:47.440 --> 0:13:49.480 he's the president at the end of the day. He's 0:13:49.480 --> 0:13:52.200 sitting in the Oval Office right now, and uh, it 0:13:52.320 --> 0:13:54.480 just was a very unique time. And you know a 0:13:54.480 --> 0:13:59.280 lot of surrounding circumstances with Comey's letter and all the 0:13:59.360 --> 0:14:01.960 Russia hats and all that. But you know, these are 0:14:01.960 --> 0:14:04.680 the things that happened in presidential politics, and you know, 0:14:04.720 --> 0:14:06.800 you get a lot of things, a lot of surprises happen, 0:14:06.960 --> 0:14:10.080 and uh, he's sitting there and he was inaugurated, so 0:14:10.440 --> 0:14:12.719 you know he wasn't It's all I can say. The 0:14:12.800 --> 0:14:16.520 fabric of your Virginia is one of the most diverse 0:14:16.600 --> 0:14:20.080 states in the nation. Maybe Illinois, maybe Georgia. I'll let 0:14:20.080 --> 0:14:22.360 you decide. You're the pro at this, I'm not, but 0:14:22.600 --> 0:14:25.760 you have a diversity in Virginia that I would suggest 0:14:26.240 --> 0:14:30.560 is like nowhere else. What is the underlying support for 0:14:30.600 --> 0:14:35.600 President Trump right now from his core constituency witnesses speech today, 0:14:35.640 --> 0:14:40.640 but particularly Terry at the marginal Republican level. Are those 0:14:40.680 --> 0:14:44.600 people with them or are they stealable by you Democrats? 0:14:45.160 --> 0:14:48.120 Well he's in He's in a bad shape politically today 0:14:48.120 --> 0:14:51.720 in Virginia. Paul came out the other day. Um, I 0:14:51.760 --> 0:14:54.520 think you know the Quinnipec Pole. He was underwater sixteen 0:14:54.600 --> 0:14:58.520 or eighteen points. We've never seen anything like it this fast. Um, 0:14:58.600 --> 0:15:01.680 so Pe, We're very concerned. We have a lot of issues. 0:15:01.720 --> 0:15:04.320 I mean, he's done the federal hiring freeze. We are 0:15:04.480 --> 0:15:07.640 very concerned about what he's gonna do on Obamacare, a 0:15:07.800 --> 0:15:10.920 repeal without replacement town would cost US two hundred million 0:15:10.920 --> 0:15:14.720 dollars a year automatically and our budget. We're very concerned 0:15:15.040 --> 0:15:16.800 about the travel ban. As you know, I went to 0:15:16.880 --> 0:15:19.160 Dallas Airport. I think I was the first elected official 0:15:19.200 --> 0:15:21.560 out when I heard there was a family being detained 0:15:21.560 --> 0:15:24.360 there with two children with US passports without access to 0:15:24.440 --> 0:15:27.640 legal counsel. Were very concerned about what is happening with 0:15:27.800 --> 0:15:31.240 ICE officials today. We had an incident at a church 0:15:31.360 --> 0:15:34.440 the other day. It was a hypothermia center. Folks went 0:15:34.440 --> 0:15:35.720 in there to get out of the coal. They came 0:15:35.760 --> 0:15:39.480 out the next day and uh six seven ICE agents 0:15:40.080 --> 0:15:43.520 accosted him. I mean the first person they talked to, Francy. 0:15:43.560 --> 0:15:45.880 And I'd make a joke here about Dallas Airport and 0:15:45.920 --> 0:15:49.200 Governor mc caull if is gonna fix the world's worst airport. 0:15:49.400 --> 0:15:53.880 But it's not funny. Unfortunately, there's so much seriousness, seriousness 0:15:53.880 --> 0:15:55.720 going on in this fancy time. If you could have 0:15:55.760 --> 0:15:57.800 been there with me, I'm telling you, with these families, 0:15:58.520 --> 0:16:01.680 it was heart wrenching. I mean families there six eight hours. 0:16:01.680 --> 0:16:04.400 They got on a plane with legal documents and were 0:16:04.400 --> 0:16:07.440 detained when they landed. And how about yesterday reports of 0:16:07.520 --> 0:16:10.880 coming off of domestic flights in America and having to 0:16:10.920 --> 0:16:14.800 show your eye, Governor. Well, the institutions work. And actually, 0:16:14.880 --> 0:16:16.960 I I don't know about the airport, Tom, but I'm 0:16:17.000 --> 0:16:19.080 a huge fan of Virginia because it reminds me of 0:16:19.160 --> 0:16:23.600 childhood memories going around Shinando, a National park with my family. Well, 0:16:23.640 --> 0:16:27.400 the institutions in America work to try and fix some 0:16:27.480 --> 0:16:30.320 of the problems you were just talking about. I believe. So. 0:16:30.480 --> 0:16:33.920 In fact, we're here this weekend the National Governors Association, 0:16:33.960 --> 0:16:37.120 which I'm the chairman of. We have our largest crowd ever. 0:16:37.200 --> 0:16:39.160 We have forty seven governors going to be here for 0:16:39.200 --> 0:16:42.440 four days. We're gonna meet several times with President Trump. 0:16:42.480 --> 0:16:45.320 We're having lunch today with Vice President Pence. We're gonna 0:16:45.320 --> 0:16:48.920 meet with the congressional leaders on Monday. Listen, we have 0:16:49.080 --> 0:16:51.720 to work together. And the point we like Listen, that 0:16:51.760 --> 0:16:54.880 executive travel ban, executive order was hastily put together with 0:16:54.960 --> 0:16:58.600 no consultation with with the Congress or the courts. And 0:16:58.640 --> 0:17:01.200 of course he paid a price for that. And you know, 0:17:01.280 --> 0:17:04.200 the border agents, custom agents did not have clear guidelines, 0:17:04.240 --> 0:17:06.879 and it really was an embarrassment for our great nation, 0:17:07.280 --> 0:17:10.639 you know, the bastion of civil liberties democracy to have 0:17:10.800 --> 0:17:13.080 that go on. But the systems will work. But in 0:17:13.160 --> 0:17:15.399 my point as chairman, which I will say to the President, 0:17:15.720 --> 0:17:17.879 we have to work together. You know, two hundred and 0:17:17.920 --> 0:17:20.679 thirty years ago in New Yorktown, Virginia, we sent the 0:17:20.720 --> 0:17:23.520 British back in the Battle of Yorktown. We got rid 0:17:23.560 --> 0:17:25.399 of the king. We're not bringing one back two d 0:17:25.520 --> 0:17:27.760 thirty five years later, he's just joining us. Terry McCall 0:17:27.800 --> 0:17:30.240 if he is the governor of the state of Virginia, 0:17:30.280 --> 0:17:33.520 Friends and Laquad in London. I'm Tom Keane in New York, Governor. 0:17:33.520 --> 0:17:37.000 When I look at immigration, I guess the feeling I have, 0:17:37.119 --> 0:17:39.760 and I think so many Americans have, as we understand 0:17:39.960 --> 0:17:41.879 on the cover of the New York Times today, the 0:17:41.920 --> 0:17:44.840 Walter Journal, the F. T. Bloomberg whatever, that there seemed 0:17:44.880 --> 0:17:48.240 to be almost two white houses. How did the cabinet 0:17:48.359 --> 0:17:54.639 officers get control of the procedural dialogue of this White House? 0:17:54.680 --> 0:17:59.800 How does Governor General Kelly, General Maddis, Mr Tillison, how 0:17:59.840 --> 0:18:03.640 do they become dominant figures? Or is that just a fiction? Well, 0:18:03.800 --> 0:18:07.200 they better become dominant or else where. This country is 0:18:07.240 --> 0:18:09.760 in for a very rough road. I'll be meeting with 0:18:09.800 --> 0:18:11.959 General Kelly. I sent him a letter in my concern 0:18:12.040 --> 0:18:14.399 about what had happened in Virginia. I'll be meeting with 0:18:14.440 --> 0:18:17.520 General Kelly on Sunday with Ice officials to go through. 0:18:17.720 --> 0:18:19.479 I mean, it's clear now we have a new standard 0:18:19.480 --> 0:18:22.560 here in America that you can randomly stop anyone you 0:18:22.640 --> 0:18:25.600 are without any due process. Any do cause that is 0:18:25.640 --> 0:18:28.080 a really that's a big shift in America that's never 0:18:28.119 --> 0:18:31.840 happened before. But my fear as governor is this to me, 0:18:31.880 --> 0:18:34.439 all comes back, the economy comes back to jobs. This 0:18:34.480 --> 0:18:37.119 could have a chilling effect on the economy. I have 0:18:37.200 --> 0:18:40.800 already lost several site visits of companies from overseas who 0:18:40.840 --> 0:18:44.400 are coming to Virginia to build manufacturing facilities have now said, 0:18:44.520 --> 0:18:46.879 you know, it's not the right time to come to America. 0:18:46.960 --> 0:18:50.359 We're scared to come to American And remember Tim and 0:18:50.400 --> 0:18:54.480 franccene that of the world's customers live outside of America. 0:18:54.600 --> 0:18:57.960 It is truly a global economy. We're doing great in Virginia, 0:18:59.359 --> 0:19:02.120 thousand new absence i've been governor. Unemployment's gone from five 0:19:02.200 --> 0:19:04.919 four to four one. But we do that because I 0:19:05.000 --> 0:19:08.119 trade on a global basis. And when when you start 0:19:08.200 --> 0:19:11.080 doing these with a fear of raids and all these 0:19:11.080 --> 0:19:14.840 other issues, it is going to affect the U. S economy. Governor, 0:19:14.880 --> 0:19:18.520 how difficult is it for Democrats and for a democratic 0:19:18.560 --> 0:19:22.040 governor to push back against some of the Trump policies. 0:19:22.080 --> 0:19:24.680 Do you not need to convince because it's very easy 0:19:24.760 --> 0:19:26.520 for the President to turn around and say, well, you're 0:19:26.560 --> 0:19:29.040 the opposition, of course you would say that, do you 0:19:29.080 --> 0:19:32.199 not need to convince people within his own party to 0:19:32.400 --> 0:19:36.040 to maybe change and take a different tack. Well, and 0:19:36.160 --> 0:19:37.800 I think the most important that we can do as 0:19:37.840 --> 0:19:41.600 governors is we have a very large bully pulpit. You know. Listen, 0:19:41.600 --> 0:19:43.520 when I went out to Dallas Airport, I was on 0:19:43.640 --> 0:19:46.639 all the networks and they carried it live on Fox 0:19:46.720 --> 0:19:49.959 and CNN. That's what you can do is raise the issue. 0:19:50.440 --> 0:19:53.600 I have been very vocal on these ice detainer issues, 0:19:54.080 --> 0:19:57.160 and I think what we can do is raise awareness. 0:19:57.200 --> 0:19:59.879 But right the federal government has the ability, you know, 0:20:00.080 --> 0:20:01.719 to do what they want to do on these federal 0:20:01.720 --> 0:20:04.560 issues as it relates to deportation and so forth. But 0:20:04.640 --> 0:20:08.080 we want to work. Listen, I listen, everybody, every governor 0:20:08.119 --> 0:20:10.800 wants the same thing. We want strong economy, we want jobs, 0:20:10.800 --> 0:20:13.440 we want a great healthcare and education system. That should 0:20:13.520 --> 0:20:16.159 be the same thing. I have known President Trump for 0:20:16.200 --> 0:20:19.080 twenty years. I've had dinner with him, I've golfed with him. 0:20:19.119 --> 0:20:21.640 He actually gave me twenty five dollars when I ran 0:20:21.680 --> 0:20:25.800 for governor. I and I just, uh, he and I 0:20:25.840 --> 0:20:28.680 should have the same goal about growing the economy. But 0:20:29.160 --> 0:20:31.160 I think he's had a very rough start. I think 0:20:31.160 --> 0:20:33.320 he's got a lot of mistakes in the first thirty days. 0:20:33.400 --> 0:20:36.600 Let's let's continue this discussion Terry mccauloff with his folks. 0:20:36.600 --> 0:20:40.440 Of course, with his service to the Democrat Party. He's 0:20:40.440 --> 0:20:44.560 somebody the Republicans have always respected in terms of just 0:20:44.840 --> 0:20:48.320 loyalty to the party. Will continue on the Democrats with 0:20:48.440 --> 0:20:52.240 this Governor mccauloff of Virginia, and it's always good to 0:20:52.240 --> 0:20:54.960 talk to him about the present politics. Terry. I want 0:20:54.960 --> 0:20:59.600 to go back to your exceptional competencies of running things 0:21:00.119 --> 0:21:02.840 for the Democratic Party, and I can take it all 0:21:02.880 --> 0:21:06.000 the way back to scenic Syracuse, New York and Bishop Laden. 0:21:06.400 --> 0:21:12.840 A few years ago, the Democrats got clobbered in Cayuga, Courtland, 0:21:12.920 --> 0:21:17.919 Madison on a Daga, and Oswego County, the heart of 0:21:18.080 --> 0:21:21.879 central New York. In Oswego County, Mr Trump took fifty 0:21:23.160 --> 0:21:27.160 of the vote. How does the next Democratic candidate, How 0:21:27.200 --> 0:21:31.040 do the progressives of the Democratic Party get back to 0:21:31.160 --> 0:21:36.480 winning their fair share of those votes. It's a good question, 0:21:36.560 --> 0:21:40.119 tom uh. One thing I have argued with the Democrats 0:21:40.160 --> 0:21:43.520 we need a stronger economic message. I mean, as I say, 0:21:43.520 --> 0:21:47.280 look at Virginia today. We traditionally used to be a 0:21:47.320 --> 0:21:51.240 red state, purple state, uh in elections. We've now moved 0:21:51.280 --> 0:21:54.440 to a blue state in presidential elections because like when 0:21:54.440 --> 0:21:57.560 I ran for governor, I ran in a strong economic message. 0:21:57.840 --> 0:22:01.040 My focus is going to be jobs, jobs, job diversifying. 0:22:01.040 --> 0:22:04.040 The academy. We're leading the country today on cybersecurity and 0:22:04.359 --> 0:22:08.280 new bioscience is human genome sequencing. Democrats have to lay 0:22:08.280 --> 0:22:10.480 out a plan. What is it you're going to do 0:22:10.600 --> 0:22:13.280