1 00:00:00,240 --> 00:00:04,040 Speaker 1: Runt you by Bank of America Mary Lynch. With virtual reality, 2 00:00:04,320 --> 00:00:09,719 Speaker 1: virtually everything will change. Discover opportunities in a transforming world. 3 00:00:10,119 --> 00:00:14,440 Speaker 1: Be of a mL dot Com, slash VR, Mary Lynch, 4 00:00:14,520 --> 00:00:28,120 Speaker 1: Pierced Fenner and Smith Incorporated. Ye, Welcome to the Bloomberg 5 00:00:28,160 --> 00:00:32,360 Speaker 1: Surveillance Podcast. I'm Tom Keene with David Gura. Daily we 6 00:00:32,440 --> 00:00:36,080 Speaker 1: bring you insight from the best of economics, finance, investment, 7 00:00:36,120 --> 00:00:42,160 Speaker 1: and international relations. Find Bloomberg Surveillance on Apple Podcasts, SoundCloud, 8 00:00:42,280 --> 00:00:50,280 Speaker 1: Bloomberg dot Com, and of course on the Bloomberg Welcome 9 00:00:50,280 --> 00:00:52,440 Speaker 1: nor Bloomberg eleven three studios. Joe Quinlan, he's the head 10 00:00:52,440 --> 00:00:54,880 Speaker 1: of market and Thematic Strategy at Mary Lynch and US 11 00:00:55,360 --> 00:00:56,880 Speaker 1: Trust and correct me if I'm wrong with There seems 12 00:00:56,880 --> 00:00:58,680 Speaker 1: to be a great deal of anticipation at the volatility 13 00:00:58,640 --> 00:01:01,160 Speaker 1: we might see on through you say, there's so much happening, 14 00:01:01,440 --> 00:01:03,480 Speaker 1: whether whether it's the hearing on Capitol Hill or the 15 00:01:03,480 --> 00:01:05,520 Speaker 1: e c v U. I mean, how do you position 16 00:01:05,560 --> 00:01:08,600 Speaker 1: yourself ahead of an event like those? Well, you know, 17 00:01:08,640 --> 00:01:10,400 Speaker 1: we we don't do a lot of positioning, you know, 18 00:01:10,440 --> 00:01:12,800 Speaker 1: and more investors than traders, but we do have to 19 00:01:12,840 --> 00:01:14,880 Speaker 1: hold the hands of our clients to say, okay, what's 20 00:01:14,920 --> 00:01:17,240 Speaker 1: the risk to the portfolios when it comes to the 21 00:01:17,319 --> 00:01:20,560 Speaker 1: UK election or what's happening in Middle East and Thursday. So, 22 00:01:20,640 --> 00:01:23,080 Speaker 1: but you know, we kind of see through the political noise, 23 00:01:23,160 --> 00:01:26,720 Speaker 1: try to discern what's real what's not and focus on earnings, 24 00:01:26,760 --> 00:01:29,800 Speaker 1: the underlying growth, um, you know with the FED messaging 25 00:01:29,800 --> 00:01:31,640 Speaker 1: when it comes to the balance sheets. So we're trying 26 00:01:31,680 --> 00:01:33,760 Speaker 1: to look beyond some of the noise. But if we 27 00:01:33,800 --> 00:01:36,479 Speaker 1: get some real fireworks or so smoking, you know, fire 28 00:01:36,600 --> 00:01:38,679 Speaker 1: instead of smoke on Thursday, Yeah, you have to start 29 00:01:38,680 --> 00:01:40,200 Speaker 1: thinking about what do we do with the portfolios to 30 00:01:40,240 --> 00:01:41,920 Speaker 1: manage the risk. We just got a sense of how 31 00:01:41,959 --> 00:01:44,280 Speaker 1: you regard Europe at this point. Um, when you look 32 00:01:44,319 --> 00:01:47,600 Speaker 1: at the economy, it seems like it's in decent defined shape. Politically, 33 00:01:47,600 --> 00:01:50,840 Speaker 1: it's still a bit thorny. How how do you navigate 34 00:01:50,880 --> 00:01:53,280 Speaker 1: to I did navigate that right now. Wait, we still 35 00:01:53,320 --> 00:01:56,240 Speaker 1: like these big large cap companies, life science companies out 36 00:01:56,240 --> 00:02:00,120 Speaker 1: of Switzerland, Um, the capitol machinery guys out of German. 37 00:02:00,360 --> 00:02:03,200 Speaker 1: You know, actually we're looking to buy some Spanish Italian 38 00:02:03,280 --> 00:02:06,480 Speaker 1: banks because I think Merkel's more into Europe now that 39 00:02:06,600 --> 00:02:09,560 Speaker 1: ever before, because of the differences with Trump administration. So 40 00:02:09,880 --> 00:02:13,280 Speaker 1: if you've got a Germany acting more European and ready 41 00:02:13,320 --> 00:02:15,640 Speaker 1: to step up and provide some of that capital, I 42 00:02:15,639 --> 00:02:17,360 Speaker 1: think the spreads come in and I think some of 43 00:02:17,400 --> 00:02:19,919 Speaker 1: these weaker banks look very good on the upside. Hey, 44 00:02:19,919 --> 00:02:22,040 Speaker 1: you highlight this in a recent note of coming from 45 00:02:22,080 --> 00:02:24,840 Speaker 1: Uncle and Merkel. We Europeans must take our destiny into 46 00:02:24,919 --> 00:02:28,040 Speaker 1: our own hands. What changed after the French election, or 47 00:02:28,240 --> 00:02:30,000 Speaker 1: after the G seven summit, or after the US with 48 00:02:30,080 --> 00:02:32,720 Speaker 1: three from from from the Paris Agreement. What's what's Europe 49 00:02:32,840 --> 00:02:35,000 Speaker 1: looking like now? Where is it head to do? You thing? Well? 50 00:02:35,040 --> 00:02:38,079 Speaker 1: I think I don't want to see a transatlantic breaker 51 00:02:38,240 --> 00:02:40,720 Speaker 1: divorce in the United States and Europe are the bedrock 52 00:02:40,760 --> 00:02:44,120 Speaker 1: of the global economy. But there's clearly frustration on the 53 00:02:44,200 --> 00:02:47,800 Speaker 1: part of the Europeans, Brussels, France and particularly Mercle that 54 00:02:47,880 --> 00:02:50,000 Speaker 1: the US is going to just go its own way, 55 00:02:50,000 --> 00:02:51,680 Speaker 1: and therefore we've got to just step up and be 56 00:02:51,760 --> 00:02:54,359 Speaker 1: our own, you know, kind of grow up. The question 57 00:02:54,440 --> 00:02:57,280 Speaker 1: is will Germany actually lead in that lecture? So well, 58 00:02:57,360 --> 00:02:59,639 Speaker 1: that's yet to be determined. So we see what's happening 59 00:02:59,639 --> 00:03:02,240 Speaker 1: in the realm of geopolitics. How weird are you about 60 00:03:02,280 --> 00:03:06,160 Speaker 1: the continuity or the strength of the economic relationship between 61 00:03:06,160 --> 00:03:08,200 Speaker 1: the US and Europe at this point. I think it 62 00:03:08,200 --> 00:03:10,359 Speaker 1: will stand the problems we have here in a near 63 00:03:10,440 --> 00:03:13,360 Speaker 1: term with the Trump administration and also the Merkel because 64 00:03:13,440 --> 00:03:16,720 Speaker 1: when you look at the underlying commercial linkage is they're 65 00:03:16,800 --> 00:03:20,560 Speaker 1: very deep, they're very broad, their investment, their trade. Uh 66 00:03:20,600 --> 00:03:22,679 Speaker 1: you know, you've got Deer just announcing they're going to 67 00:03:22,720 --> 00:03:25,960 Speaker 1: buy a German capital goods maker. That's going to continue 68 00:03:26,120 --> 00:03:28,840 Speaker 1: in Ireland is very much and radar screens of a 69 00:03:28,880 --> 00:03:31,720 Speaker 1: lot of US companies related to taxes or not. So Yeah, 70 00:03:31,720 --> 00:03:34,760 Speaker 1: I think business in general continues, but the policy overlay 71 00:03:34,800 --> 00:03:36,960 Speaker 1: could be better. There's no one's talking about t TIP 72 00:03:37,000 --> 00:03:39,240 Speaker 1: anymore because that died on the vine. Joe Quinlin, the 73 00:03:39,280 --> 00:03:42,680 Speaker 1: head of market in Thematic Strategy at Marylynch and US Trust, 74 00:03:42,760 --> 00:03:44,760 Speaker 1: How would you of a risk? Is trade still at 75 00:03:44,760 --> 00:03:47,120 Speaker 1: this point? You mentioned t TIP, that agreement that was 76 00:03:47,640 --> 00:03:49,560 Speaker 1: being hammered out for for a long time between the 77 00:03:49,640 --> 00:03:52,600 Speaker 1: US and Europe. Is it still downside risk that the 78 00:03:52,640 --> 00:03:54,680 Speaker 1: fact that we could see some increased protectionism or some 79 00:03:54,760 --> 00:03:57,320 Speaker 1: changes to trade policy. I think the biggest risk would 80 00:03:57,320 --> 00:04:00,400 Speaker 1: be really local, whether it's between NAFTA UM in the 81 00:04:00,480 --> 00:04:03,600 Speaker 1: United States because it's the global supply Chaine. It's remarkable. 82 00:04:03,600 --> 00:04:05,080 Speaker 1: In the last ten years or so, even the last 83 00:04:05,080 --> 00:04:08,360 Speaker 1: five years, a lot of US companies brought their supply 84 00:04:08,480 --> 00:04:12,080 Speaker 1: chains closer to the U. S vs V, Canada and Mexico, 85 00:04:12,360 --> 00:04:15,000 Speaker 1: you know, away from China after the crisis, and now 86 00:04:15,040 --> 00:04:18,720 Speaker 1: we're ready to the disruptive supply chains. Mexico is very important. 87 00:04:18,760 --> 00:04:22,480 Speaker 1: It's just an extinction of the industrial production network of 88 00:04:22,560 --> 00:04:26,599 Speaker 1: the United States. Good morning everyone, Good morning David. We 89 00:04:26,720 --> 00:04:28,240 Speaker 1: sent way too much time to you think it's three 90 00:04:28,279 --> 00:04:32,159 Speaker 1: days in a row to change Joe Quitlin with this 91 00:04:32,240 --> 00:04:36,159 Speaker 1: Maryland and US trust as well as some good perspective UM. 92 00:04:36,240 --> 00:04:38,400 Speaker 1: One thing we've seen in our trade interviews is the 93 00:04:38,440 --> 00:04:41,840 Speaker 1: idea of process. Industrial process has changed everything. I understand 94 00:04:41,839 --> 00:04:45,960 Speaker 1: that any politician has to go back to residences of 95 00:04:46,080 --> 00:04:50,120 Speaker 1: previous culture and dialogue within America. How do the politicians 96 00:04:50,160 --> 00:04:56,960 Speaker 1: explain the new industrial proper process to beleaguered constituents. Well, Tom, 97 00:04:56,960 --> 00:04:58,760 Speaker 1: I think they gotta listen to the governors. You know, 98 00:04:58,839 --> 00:05:01,640 Speaker 1: if you're the governor of South Carolina or Alabama, you've 99 00:05:01,680 --> 00:05:05,040 Speaker 1: you've been at the table negotiating with these big multinationals 100 00:05:05,040 --> 00:05:07,080 Speaker 1: in terms of tax incentives, But what are we going 101 00:05:07,120 --> 00:05:09,280 Speaker 1: to get in return when it comes to the number 102 00:05:09,320 --> 00:05:11,640 Speaker 1: of employees, How we're going to bring in parts, how 103 00:05:11,640 --> 00:05:15,120 Speaker 1: we're gonna increase our main in America content. So I 104 00:05:15,160 --> 00:05:19,039 Speaker 1: would talk to Kentucky governors, Michigan maybe perhaps, but the 105 00:05:19,120 --> 00:05:22,160 Speaker 1: southeastern part of this country has done a fabulous job 106 00:05:22,600 --> 00:05:27,320 Speaker 1: reinventing itself as a manufacturing powerhouse courtesy of foreign multinationals 107 00:05:27,360 --> 00:05:29,120 Speaker 1: being on the ground. You mentioned how you're able to 108 00:05:29,160 --> 00:05:30,640 Speaker 1: sort of tune out, to try to tune out that 109 00:05:30,680 --> 00:05:33,200 Speaker 1: the political noise. If if I'm the head of a 110 00:05:33,279 --> 00:05:37,160 Speaker 1: multinational German base multinationals, say, how am I supposed to 111 00:05:37,240 --> 00:05:39,240 Speaker 1: navigate what I'm seeing from the President when it comes 112 00:05:39,279 --> 00:05:42,279 Speaker 1: to his focus on the trade deficit side. Well, I 113 00:05:42,279 --> 00:05:45,200 Speaker 1: mean that's very challenging, and there's a lot of anks around, 114 00:05:45,400 --> 00:05:48,120 Speaker 1: you know, the kind of welcoming Matt for here in Washington. 115 00:05:48,520 --> 00:05:50,680 Speaker 1: But you know, but if you're a CEO, you're spending 116 00:05:50,680 --> 00:05:52,919 Speaker 1: more time out in the states or the local communities 117 00:05:52,960 --> 00:05:55,000 Speaker 1: than you are in Washington. Obviously you've got your big 118 00:05:55,040 --> 00:05:57,840 Speaker 1: lobbyists working the corridors of power. But I think at 119 00:05:57,839 --> 00:06:00,359 Speaker 1: the end of the day. The US economy is still open. 120 00:06:00,440 --> 00:06:04,120 Speaker 1: We've got a very large consumer base, great universities that 121 00:06:04,200 --> 00:06:05,800 Speaker 1: you want to be here. You a lot of just 122 00:06:06,000 --> 00:06:08,880 Speaker 1: many multinationals can't afford not to be here. We're talking 123 00:06:08,880 --> 00:06:12,200 Speaker 1: about European equities, and what you find an attractive there 124 00:06:12,400 --> 00:06:14,840 Speaker 1: is the baskets of the basket of goods, the basket 125 00:06:14,880 --> 00:06:16,840 Speaker 1: of kinds of companies similar in the U S. When 126 00:06:16,839 --> 00:06:20,680 Speaker 1: you're looking at US equities that you like in general, 127 00:06:20,760 --> 00:06:24,719 Speaker 1: whether it's pharmaceuticals, some logistics companies out of the Nordic States. 128 00:06:24,760 --> 00:06:28,000 Speaker 1: But I think the upside, the opportunity could be these 129 00:06:28,040 --> 00:06:32,200 Speaker 1: weaker financial institutions and how do you dare saving Greece, Spain, 130 00:06:32,360 --> 00:06:35,120 Speaker 1: Italy have a Barbell strategy, you have the risk out there. 131 00:06:35,520 --> 00:06:38,800 Speaker 1: You want to own the big, big guys that I 132 00:06:38,920 --> 00:06:43,159 Speaker 1: mean to interrupt, but the theme this morning David Gura 133 00:06:43,680 --> 00:06:46,760 Speaker 1: has been mergers in combinations. That's the only way in 134 00:06:46,800 --> 00:06:50,160 Speaker 1: a subpart nominal GDP is that just what we're gonna see. 135 00:06:50,200 --> 00:06:53,560 Speaker 1: Joe Quitlin is Andrew mellon Redux. I mean, you have 136 00:06:53,880 --> 00:06:56,520 Speaker 1: more more Bolton's. It's it's very hard to drive that 137 00:06:56,680 --> 00:07:00,960 Speaker 1: organic growth and you're gonna you're seeing really transatlantic alliance 138 00:07:01,000 --> 00:07:04,760 Speaker 1: become even more consolidated by industry. I think that's time. 139 00:07:04,839 --> 00:07:06,680 Speaker 1: You know, you gotta buy the market share, and the 140 00:07:06,960 --> 00:07:09,520 Speaker 1: shareholders are okay with us, so the border directors, it's 141 00:07:09,520 --> 00:07:11,920 Speaker 1: just very hard to come out and drive that get 142 00:07:11,960 --> 00:07:14,880 Speaker 1: those new markets. David, I think this is a huge deal. 143 00:07:15,240 --> 00:07:17,520 Speaker 1: I mean, given what we see on the tape with 144 00:07:17,600 --> 00:07:21,160 Speaker 1: futures deteriorating just in the last twenty minutes, yields once 145 00:07:21,160 --> 00:07:25,520 Speaker 1: again coming down Joe Quillan two one. They haven't broken 146 00:07:25,520 --> 00:07:28,280 Speaker 1: through in the two year but you really just wonder 147 00:07:28,800 --> 00:07:32,600 Speaker 1: if rates don't rise, that's got to mean cheap money, 148 00:07:32,680 --> 00:07:35,920 Speaker 1: which means the strongest stronger, right, the strongest stronger they 149 00:07:35,920 --> 00:07:38,600 Speaker 1: can they can take on more risk, leverage up. Not 150 00:07:38,600 --> 00:07:40,040 Speaker 1: not to the point where we're looking at it, but 151 00:07:40,240 --> 00:07:42,119 Speaker 1: I think you know, the m n A, the share 152 00:07:42,160 --> 00:07:44,720 Speaker 1: buy backs, the dividends. Time. You know, it's a it's 153 00:07:44,720 --> 00:07:47,440 Speaker 1: a tired story, but it's it's playing out and you 154 00:07:47,440 --> 00:07:49,000 Speaker 1: don't you don't want to miss it. Given where the 155 00:07:49,080 --> 00:07:51,040 Speaker 1: yields are in the fixed income you have a lot 156 00:07:51,040 --> 00:07:55,360 Speaker 1: of have a lot of people missed it. John Trucker 157 00:07:55,480 --> 00:08:02,400 Speaker 1: Total total no I'm totally on top of it now. 158 00:08:02,880 --> 00:08:04,640 Speaker 1: I think a lot of folks have it, just the 159 00:08:04,680 --> 00:08:07,760 Speaker 1: disbelief of waiting for the turn and it hasn't come yet. 160 00:08:07,840 --> 00:08:10,840 Speaker 1: So we want the dividend payers, the growth players, and 161 00:08:10,880 --> 00:08:13,200 Speaker 1: but you can get some upside when it comes to 162 00:08:13,240 --> 00:08:15,520 Speaker 1: the emerging markets. And I think some of these technology 163 00:08:15,520 --> 00:08:18,040 Speaker 1: companies leverage. Is there a limit to the leanness? How 164 00:08:18,120 --> 00:08:20,880 Speaker 1: lean these companies can can become? That's a good question. 165 00:08:22,560 --> 00:08:25,680 Speaker 1: We're working for a bank, I always think that same thing. Um, 166 00:08:25,840 --> 00:08:29,120 Speaker 1: is there a limit? Yeah, not yet, not that we've seen, right. 167 00:08:29,160 --> 00:08:31,320 Speaker 1: I mean, it's a remarkable what we get out of 168 00:08:31,320 --> 00:08:34,160 Speaker 1: a workforce being so taunt and tank that it is. So, 169 00:08:34,200 --> 00:08:36,120 Speaker 1: I mean, is there a limit? Sure? But we can 170 00:08:36,200 --> 00:08:39,319 Speaker 1: we can automate. But the question is the consumers when 171 00:08:39,320 --> 00:08:41,360 Speaker 1: we're sitting on a line for like, you know, two 172 00:08:41,360 --> 00:08:43,600 Speaker 1: minutes before we get to a body or that's we 173 00:08:43,679 --> 00:08:47,240 Speaker 1: pay Joe Quinlin with US Maryland, US Trust through these 174 00:08:47,679 --> 00:08:50,200 Speaker 1: with US. Joe in the old days used to say, 175 00:08:50,200 --> 00:08:52,040 Speaker 1: can you withstand a bear market? You know you're go 176 00:08:52,040 --> 00:08:53,960 Speaker 1: into equities, you put risk in hand, and the bearer 177 00:08:54,000 --> 00:08:57,280 Speaker 1: markets define I'll call it eighteen percent. The gloom crew 178 00:08:57,280 --> 00:09:01,040 Speaker 1: would say, it's been so long since we've enjoyed a 179 00:09:01,080 --> 00:09:05,400 Speaker 1: ten percent correction or beer market. Are we ready to 180 00:09:05,440 --> 00:09:13,280 Speaker 1: withstand losses in a constructive fashion? I think constructive. I 181 00:09:13,320 --> 00:09:15,320 Speaker 1: think so yes. But we're not seeing that, Tom, I 182 00:09:15,360 --> 00:09:19,160 Speaker 1: mean we were. We're in the portfolios you managed to risk. Um. 183 00:09:19,200 --> 00:09:21,640 Speaker 1: We do have a lot of people I think well 184 00:09:21,720 --> 00:09:25,280 Speaker 1: positioned because they didn't put all their money into into equity. 185 00:09:25,280 --> 00:09:26,679 Speaker 1: If we've got a lot of folks sitting in fixed 186 00:09:26,720 --> 00:09:29,600 Speaker 1: income yielding virtually nothing, but that that helps them sleep 187 00:09:29,640 --> 00:09:32,040 Speaker 1: at night. So I think we can manage the downside. 188 00:09:32,520 --> 00:09:34,480 Speaker 1: I guess you'd have to tell me how do we 189 00:09:34,520 --> 00:09:37,400 Speaker 1: get to a bear market? One of the conditions the catalysts. 190 00:09:37,679 --> 00:09:39,600 Speaker 1: I don't see any of my experiences when we get 191 00:09:39,640 --> 00:09:41,920 Speaker 1: to a bear market. We get there by not experience, 192 00:09:42,000 --> 00:09:44,959 Speaker 1: by not knowing it's that was like, oh, that was 193 00:09:45,040 --> 00:09:48,320 Speaker 1: harsh that now we see it was to see a 194 00:09:48,360 --> 00:09:52,480 Speaker 1: certain percentage of our younger girl like audience has never 195 00:09:53,040 --> 00:09:56,120 Speaker 1: enjoyed the bearer market. But with Tom, I think what 196 00:09:56,160 --> 00:09:58,120 Speaker 1: I've noticed with some of our clients, many of our 197 00:09:58,120 --> 00:10:00,920 Speaker 1: clients actually coming out of the Great Recession two thousand 198 00:10:01,040 --> 00:10:05,200 Speaker 1: nine two, they really remain cautious. We have we have 199 00:10:05,280 --> 00:10:08,040 Speaker 1: clients still in cash, for instance, or they're buying hard 200 00:10:08,080 --> 00:10:12,839 Speaker 1: assets timber, farmland, um, gold, commercial real estate. So I 201 00:10:12,840 --> 00:10:16,160 Speaker 1: don't see I see a cautious undertone to the investors 202 00:10:16,200 --> 00:10:18,560 Speaker 1: since two thousand and nine, So maybe that minimizes some 203 00:10:18,600 --> 00:10:20,760 Speaker 1: of the risk on the downside. We'll get through the 204 00:10:20,960 --> 00:10:23,160 Speaker 1: Comy polluts of this week and two too next week 205 00:10:23,240 --> 00:10:25,320 Speaker 1: when we have a two day FED meeting. We've heard 206 00:10:25,320 --> 00:10:28,040 Speaker 1: a lot of commentary from Fed policy makers about the 207 00:10:28,120 --> 00:10:31,400 Speaker 1: challenges of the plans for unwinding that massive balance sheet, 208 00:10:32,080 --> 00:10:33,480 Speaker 1: and a lot of the maintaining it's not going to 209 00:10:33,600 --> 00:10:36,679 Speaker 1: have a huge effect on on the market. Least that's 210 00:10:36,679 --> 00:10:38,640 Speaker 1: their their hope. What's your sense of of how that's 211 00:10:38,640 --> 00:10:40,640 Speaker 1: all going to play out. I think it's gonna play 212 00:10:40,679 --> 00:10:43,319 Speaker 1: out very in a very long deliberate ways. I mean, 213 00:10:43,440 --> 00:10:46,240 Speaker 1: very very long term. It's not gonna happen all at once. 214 00:10:46,360 --> 00:10:48,400 Speaker 1: I think the Fed wants to move next week and 215 00:10:48,440 --> 00:10:50,920 Speaker 1: then kind of step back and reassess how strong is 216 00:10:50,960 --> 00:10:53,280 Speaker 1: the economy, what kind of cute three numbers where we're 217 00:10:53,280 --> 00:10:56,080 Speaker 1: gonna look at, you know, we need the underlying strength 218 00:10:56,080 --> 00:10:58,760 Speaker 1: to unwind the balance sheet, and so so does Europe 219 00:10:58,760 --> 00:11:01,080 Speaker 1: and Japan and everyone else for that matter. So I 220 00:11:01,080 --> 00:11:04,000 Speaker 1: think that's it's unwinding. The balance sheet is an out 221 00:11:04,000 --> 00:11:06,720 Speaker 1: front and center, but when it comes to actually happening, 222 00:11:07,000 --> 00:11:10,600 Speaker 1: you're talking story mark one. In that end sense, it's 223 00:11:10,600 --> 00:11:13,199 Speaker 1: gonna be a long term process. That long. Yes, I 224 00:11:13,240 --> 00:11:16,040 Speaker 1: think it could take that long because you're you're it's 225 00:11:16,040 --> 00:11:18,000 Speaker 1: gonna you're gonna They're not gonna do it all at once. 226 00:11:18,000 --> 00:11:21,120 Speaker 1: It's gonna be well advertised. I think they're gonna go slow. Now, 227 00:11:21,280 --> 00:11:23,400 Speaker 1: another issue could be who's gonna be running the FED 228 00:11:23,640 --> 00:11:25,319 Speaker 1: a year from how or so that's gonna be another 229 00:11:25,320 --> 00:11:27,160 Speaker 1: issue in the composition of the How much thought are 230 00:11:27,200 --> 00:11:29,240 Speaker 1: you giving to that? I mean, how big a difference 231 00:11:29,240 --> 00:11:32,079 Speaker 1: could that make? Names floated now about who might be 232 00:11:32,280 --> 00:11:34,400 Speaker 1: We're just we're just starting to look at that kind 233 00:11:34,400 --> 00:11:36,600 Speaker 1: of I don't think no one radical, but like it 234 00:11:36,600 --> 00:11:39,640 Speaker 1: could be something that could be a variable in terms 235 00:11:39,679 --> 00:11:43,920 Speaker 1: of the timing. I look, Joe at all the discussions 236 00:11:43,920 --> 00:11:47,000 Speaker 1: today people in the markets, and they still go back 237 00:11:47,080 --> 00:11:52,840 Speaker 1: to basic securities research one on one, which is multiples, multiples. 238 00:11:52,840 --> 00:11:55,840 Speaker 1: It's a bit rich right now, Where is the value 239 00:11:56,000 --> 00:11:58,719 Speaker 1: in the market thinking the value in the market. Time. 240 00:11:58,760 --> 00:12:01,200 Speaker 1: I think in certain I think banks are still there's 241 00:12:01,200 --> 00:12:03,640 Speaker 1: some good value at banks, you know, whether it's large banks, 242 00:12:03,640 --> 00:12:05,760 Speaker 1: some regional banks. And is that because you wake up 243 00:12:05,840 --> 00:12:08,400 Speaker 1: January one to know you're gonna get x percent dividend 244 00:12:08,559 --> 00:12:12,199 Speaker 1: dividend growth and in share buy back. UM, that's part 245 00:12:12,240 --> 00:12:13,800 Speaker 1: of it. But I also think the banks are you know, 246 00:12:13,880 --> 00:12:15,880 Speaker 1: many of them are under owned. I think there's summer 247 00:12:15,920 --> 00:12:20,400 Speaker 1: trading at book value. UM. I believe the US economy 248 00:12:20,800 --> 00:12:25,800 Speaker 1: plots ahead, good demographics, household ownership is rising, the household 249 00:12:25,880 --> 00:12:29,160 Speaker 1: in general net worth is at all time highs UM. 250 00:12:29,200 --> 00:12:30,760 Speaker 1: So I think there's some value there and believe it 251 00:12:30,840 --> 00:12:32,920 Speaker 1: or not. Time I think there's value in technology. I 252 00:12:33,000 --> 00:12:35,360 Speaker 1: know that's crazy because I just go back to like 253 00:12:35,520 --> 00:12:38,200 Speaker 1: all the new Internet users are going to have these phones, 254 00:12:38,320 --> 00:12:42,120 Speaker 1: these devices get connected the digital global economy. It's that 255 00:12:42,200 --> 00:12:45,160 Speaker 1: we're only halfway there in terms of overall development. So 256 00:12:45,240 --> 00:12:47,000 Speaker 1: there I see some value there. Hold in on that 257 00:12:47,040 --> 00:12:48,280 Speaker 1: a little bit if you would. I mean, we saw 258 00:12:48,320 --> 00:12:50,400 Speaker 1: what happened with with Snap. Are you interested in the 259 00:12:50,480 --> 00:12:52,400 Speaker 1: hardware side more than the software side? Where where do 260 00:12:52,440 --> 00:12:55,840 Speaker 1: you see that value where that potentially more in the hardware. 261 00:12:55,880 --> 00:12:58,360 Speaker 1: I mean looking at an Apple or even say a Facebook. 262 00:12:58,360 --> 00:13:00,559 Speaker 1: If they can crack India, I come act to Indian 263 00:13:00,679 --> 00:13:04,240 Speaker 1: China because over two billion people in India's behind when 264 00:13:04,280 --> 00:13:06,160 Speaker 1: it comes to the Internet usage. But it's coming. You 265 00:13:06,200 --> 00:13:09,079 Speaker 1: see with the females, the girls. That's gonna be a 266 00:13:09,120 --> 00:13:12,760 Speaker 1: big issue driver for education. So you know Africa's to poor. 267 00:13:12,840 --> 00:13:14,920 Speaker 1: Do we have a smartphone just yet? But that's changing 268 00:13:15,080 --> 00:13:17,599 Speaker 1: rapidly in the big cities. So I think, you know, 269 00:13:17,800 --> 00:13:20,240 Speaker 1: you've got to look at these big US multinationals, look 270 00:13:20,280 --> 00:13:22,360 Speaker 1: at the valuations, how can they drive earnings? And then 271 00:13:22,360 --> 00:13:24,120 Speaker 1: you've got to look at the emerging markets and match 272 00:13:24,160 --> 00:13:26,559 Speaker 1: it up. So very valuable. Thank you so much. With 273 00:13:26,600 --> 00:13:41,320 Speaker 1: Marylynch and US trust. Joseph Quinland with US today. Failure 274 00:13:41,360 --> 00:13:44,920 Speaker 1: to Adjustice a wonderful complete book on trade dynamics. It 275 00:13:45,000 --> 00:13:48,200 Speaker 1: will make you smarter and more cute about our trade. 276 00:13:48,200 --> 00:13:51,760 Speaker 1: Hees with the Council on Foreign Relations and he's gone 277 00:13:51,840 --> 00:13:54,400 Speaker 1: rusvelty And is that how you pronounce it, David girls, 278 00:13:54,480 --> 00:13:57,800 Speaker 1: welty and honest. He sees a new deal in the 279 00:13:57,960 --> 00:14:01,800 Speaker 1: trade world. When you say new deal, Ted Alden Republicans 280 00:14:01,960 --> 00:14:07,079 Speaker 1: turn shades of pink, what is a new deal in trade? No, 281 00:14:07,240 --> 00:14:10,120 Speaker 1: I'm sure, I'm sure they do, referring to a new 282 00:14:10,160 --> 00:14:12,319 Speaker 1: paper I've I've written with my friend Bob Lytton, who's 283 00:14:12,320 --> 00:14:15,680 Speaker 1: a superb economists. We're, you know, we're trying to think 284 00:14:15,760 --> 00:14:18,120 Speaker 1: through the problem of you know, here we are in 285 00:14:18,200 --> 00:14:21,440 Speaker 1: this hyper competitive global economy, and it's not just trade, 286 00:14:21,480 --> 00:14:27,120 Speaker 1: it's technology, and Americans are having trouble responding to that, 287 00:14:27,240 --> 00:14:29,600 Speaker 1: particularly a lot of people who are not getting the 288 00:14:29,720 --> 00:14:32,920 Speaker 1: education the skills they need to thrive in that economy. 289 00:14:32,960 --> 00:14:36,400 Speaker 1: And we argue that we need to think about that, uh, systematically, 290 00:14:36,600 --> 00:14:39,160 Speaker 1: at the federal level, at the state level. And the 291 00:14:39,200 --> 00:14:41,600 Speaker 1: Republicans have a lot of good ideas here in terms 292 00:14:41,680 --> 00:14:45,880 Speaker 1: of of, you know, people taking individual responsibility for their 293 00:14:46,040 --> 00:14:48,760 Speaker 1: career choices. But Democrats also have a lot of good 294 00:14:48,800 --> 00:14:51,320 Speaker 1: ideas in terms of trying to give people a leg up. 295 00:14:51,400 --> 00:14:54,000 Speaker 1: So so we were trying to blend those two in 296 00:14:54,160 --> 00:14:56,520 Speaker 1: this in this new paper we put together and walk 297 00:14:56,600 --> 00:14:59,560 Speaker 1: us through what you're proposing, just in in broad detail. 298 00:14:59,640 --> 00:15:01,360 Speaker 1: One of the as you're you're suggesting, as we need 299 00:15:01,440 --> 00:15:04,040 Speaker 1: kind of a kind of national and elective national service 300 00:15:04,120 --> 00:15:06,600 Speaker 1: mechanism just to get people trained, get people new skills. 301 00:15:06,960 --> 00:15:08,200 Speaker 1: I mean, there are a bunch of different things. On 302 00:15:08,280 --> 00:15:10,320 Speaker 1: the one hand, where we're arguing, you know, let's let's 303 00:15:10,400 --> 00:15:13,680 Speaker 1: eliminate obstacles to people being able to find work. We've 304 00:15:13,720 --> 00:15:17,240 Speaker 1: got licensing restrictions across states that are a huge obstacle. 305 00:15:17,320 --> 00:15:19,600 Speaker 1: You look at land use restrictions make it very difficult 306 00:15:19,640 --> 00:15:23,720 Speaker 1: for people to move to areas where jobs are being created. 307 00:15:24,080 --> 00:15:26,280 Speaker 1: I mean, we call in general for you know, tax 308 00:15:26,360 --> 00:15:29,320 Speaker 1: reform to increase investment. That's all things that the Republicans 309 00:15:29,360 --> 00:15:32,200 Speaker 1: would be very positive about. On the other side, you've 310 00:15:32,240 --> 00:15:34,960 Speaker 1: got to make it possible for people to acquire the 311 00:15:35,040 --> 00:15:36,840 Speaker 1: skills they need to fill the good jobs that are 312 00:15:36,880 --> 00:15:39,880 Speaker 1: being created. So we call, for instance, for for lifetime 313 00:15:40,120 --> 00:15:43,400 Speaker 1: career loans where you know, not just borrowing for college, 314 00:15:43,480 --> 00:15:46,160 Speaker 1: but you could borrow to to train at any point 315 00:15:46,200 --> 00:15:50,760 Speaker 1: in your career, repayable based on future income, which is 316 00:15:50,800 --> 00:15:52,680 Speaker 1: an idea that's been developed in the in the student 317 00:15:52,760 --> 00:15:56,720 Speaker 1: loan area. And then on the service side, particularly for 318 00:15:56,880 --> 00:16:01,360 Speaker 1: young people, expanded opportunities for or National service to work 319 00:16:01,440 --> 00:16:04,560 Speaker 1: with with other people from different backgrounds to develop a 320 00:16:04,600 --> 00:16:07,040 Speaker 1: set of skills to launch them in their careers. It 321 00:16:07,160 --> 00:16:11,600 Speaker 1: sounds positively Australian. With my limited knowledge of the Austrians 322 00:16:11,640 --> 00:16:13,360 Speaker 1: have done well at some of these things, so well, 323 00:16:13,360 --> 00:16:14,760 Speaker 1: I guess I'm gonna learn. Now. Do we have any 324 00:16:14,800 --> 00:16:20,560 Speaker 1: political feasibility on either party to be less American and 325 00:16:20,680 --> 00:16:23,640 Speaker 1: more Australian? I mean, I do think, you know, we're 326 00:16:23,760 --> 00:16:27,360 Speaker 1: in this period where predictions are really hard because the 327 00:16:27,440 --> 00:16:30,120 Speaker 1: Republicans are a divided party. I think some of what 328 00:16:30,720 --> 00:16:34,520 Speaker 1: Trump ran on I think fits very well with this agenda, 329 00:16:34,640 --> 00:16:37,160 Speaker 1: particularly helping you know a lot of the voters from 330 00:16:37,200 --> 00:16:39,200 Speaker 1: the rest belt who put him in the White House. 331 00:16:39,280 --> 00:16:42,520 Speaker 1: But you've got a Republican party that's that's still basically 332 00:16:42,640 --> 00:16:45,880 Speaker 1: a tax cutting party, very allergic to any sort of 333 00:16:45,960 --> 00:16:49,080 Speaker 1: positive role for government. But I do believe there is 334 00:16:49,200 --> 00:16:53,160 Speaker 1: the possibility here for new cross party coalitions. Whether we're 335 00:16:53,160 --> 00:16:55,120 Speaker 1: gonna get there remains to be seen, but I think 336 00:16:55,160 --> 00:16:58,160 Speaker 1: the possibility exists. Ten Alton, this we will continue with 337 00:16:58,240 --> 00:17:01,480 Speaker 1: the console foreign relations. We'll go back to more traditional 338 00:17:01,560 --> 00:17:05,480 Speaker 1: tradegar you want to talk some sugar, you're in charge 339 00:17:06,160 --> 00:17:08,080 Speaker 1: with us. A senior fell at the Council on Form Relations, 340 00:17:08,080 --> 00:17:10,520 Speaker 1: author of the book Failure to Adjust How Americans Got 341 00:17:10,600 --> 00:17:13,200 Speaker 1: Left Behind? In the global economy and going to break 342 00:17:13,240 --> 00:17:15,520 Speaker 1: ted I said, I wanted to talk sugar. Looks like 343 00:17:15,520 --> 00:17:17,359 Speaker 1: we're going to get a press conference this afternoon with 344 00:17:17,400 --> 00:17:19,480 Speaker 1: wilpur Ross, the Secretary of Commerce, on a deal with 345 00:17:19,640 --> 00:17:22,359 Speaker 1: Mexico on sugar. So much of our focus has been 346 00:17:22,400 --> 00:17:25,920 Speaker 1: on NAFTA, the prospect for reforms or changes to NAFTA. 347 00:17:25,920 --> 00:17:27,399 Speaker 1: Of course, the White House sending it's a letter to 348 00:17:27,480 --> 00:17:31,119 Speaker 1: Congress indicating it plans to renegotiate that deal. What can 349 00:17:31,200 --> 00:17:34,120 Speaker 1: we learn about this administration's trade policy from how they've 350 00:17:34,160 --> 00:17:37,600 Speaker 1: handled the issue of sugar with Mexico. Well, we will 351 00:17:37,600 --> 00:17:39,680 Speaker 1: see what the deal is this afternoon. But I think 352 00:17:39,760 --> 00:17:43,000 Speaker 1: this is actually an encouraging sign. I mean, sugar is 353 00:17:43,040 --> 00:17:46,800 Speaker 1: one of those difficult issues where you've got, uh, you know, 354 00:17:46,920 --> 00:17:50,840 Speaker 1: a very protected market in the United States, sugar producers 355 00:17:50,880 --> 00:17:54,080 Speaker 1: who rely on quotas and other trade barriers. You've got 356 00:17:54,200 --> 00:17:57,040 Speaker 1: a Mexico this pretty efficient in producing sugar, sells a 357 00:17:57,080 --> 00:17:59,000 Speaker 1: lot of it to the United States. And so this 358 00:17:59,160 --> 00:18:00,879 Speaker 1: is just one of those shoes where you've got to 359 00:18:00,920 --> 00:18:04,159 Speaker 1: balance off the interests of Mexico the interests of sugar 360 00:18:04,320 --> 00:18:06,800 Speaker 1: users like candy makers here in the United States. And 361 00:18:07,000 --> 00:18:10,320 Speaker 1: the interests of the sugar producers in Florida and the 362 00:18:10,400 --> 00:18:13,080 Speaker 1: sugar beat producers in Minnesota and other places. And I 363 00:18:13,119 --> 00:18:15,399 Speaker 1: think the fact that they've been able to come away 364 00:18:15,480 --> 00:18:18,440 Speaker 1: with a deal is very encouraging. I mean, you contrast 365 00:18:18,520 --> 00:18:21,119 Speaker 1: that with Canadian lumber, for instance, where we're in the 366 00:18:21,200 --> 00:18:23,879 Speaker 1: middle of of a much more serious trade conflict. I 367 00:18:23,920 --> 00:18:25,560 Speaker 1: think this is a good sign. I think bodes well 368 00:18:25,600 --> 00:18:28,040 Speaker 1: for the NAFTA renegotiation. What if you have observed about 369 00:18:28,119 --> 00:18:32,560 Speaker 1: the interpersonal relationship here between Secretary Ross and his Mexican counterparts, 370 00:18:32,560 --> 00:18:35,159 Speaker 1: when when you look for signs of optimism, does it 371 00:18:35,240 --> 00:18:38,360 Speaker 1: seem like there is a a good basis for conversation 372 00:18:38,400 --> 00:18:41,520 Speaker 1: at the very least between between these officials. I mean, 373 00:18:41,600 --> 00:18:43,800 Speaker 1: I do. I think Ross has emerged as a very 374 00:18:43,880 --> 00:18:46,959 Speaker 1: important figure in this administration on trade. He's very active 375 00:18:47,040 --> 00:18:50,359 Speaker 1: on the subject. He's very engaged both here in the 376 00:18:50,480 --> 00:18:53,800 Speaker 1: United States with the various interests and and with his 377 00:18:54,400 --> 00:18:56,760 Speaker 1: foreign counterparts. I think the fact you've got Bob Leitheizer 378 00:18:56,880 --> 00:19:00,320 Speaker 1: now confirmed as the US trade representative, I think we 379 00:19:00,440 --> 00:19:04,680 Speaker 1: have the makings here of of a serious professional team 380 00:19:04,760 --> 00:19:06,879 Speaker 1: on trade policy. And I think the fact of the 381 00:19:06,960 --> 00:19:09,680 Speaker 1: sugar deal has come together. Here's an indication of that. 382 00:19:09,920 --> 00:19:12,120 Speaker 1: What do we know about Bob Lightheiser helped be different 383 00:19:12,160 --> 00:19:14,280 Speaker 1: from Wilber Rosse's in Paris? As I understand it, this 384 00:19:14,359 --> 00:19:17,159 Speaker 1: week meeting with THEOE see the beginning to travel some. 385 00:19:17,280 --> 00:19:18,920 Speaker 1: Of course, Wilbert Ross has been doing the bulk of 386 00:19:19,000 --> 00:19:21,720 Speaker 1: that while we were waiting for the confirmation of Bob Lightheiser. 387 00:19:21,960 --> 00:19:24,040 Speaker 1: What's he gonna do differently? How's he going to compliment 388 00:19:24,080 --> 00:19:27,280 Speaker 1: Secretary Ross? Well? I think there's clearly some overlap. They 389 00:19:27,320 --> 00:19:30,000 Speaker 1: both have a long history in the steel industry. Ross 390 00:19:30,119 --> 00:19:33,040 Speaker 1: is an investor and Lightheiser as a trade lawyer in 391 00:19:33,160 --> 00:19:37,240 Speaker 1: Washington for steel interests. Um. You know, Lightheiser goes back 392 00:19:37,320 --> 00:19:40,600 Speaker 1: to the Reagan administration, very long history working on these issues. 393 00:19:40,640 --> 00:19:43,480 Speaker 1: I think they they share in common the belief that 394 00:19:43,520 --> 00:19:46,080 Speaker 1: the United States needs to be tougher with its trading 395 00:19:46,160 --> 00:19:51,119 Speaker 1: partners drive better deals. Um. I think they're the difficult 396 00:19:51,200 --> 00:19:55,680 Speaker 1: issues will have to do with the role of trade 397 00:19:55,760 --> 00:20:00,240 Speaker 1: negotiations going forward. I think Lightheiser is more amina boll 398 00:20:00,320 --> 00:20:03,840 Speaker 1: to to doing trade deals of various sorts. I think 399 00:20:03,880 --> 00:20:05,840 Speaker 1: there's a fair bit of resistance from from the White 400 00:20:05,880 --> 00:20:07,639 Speaker 1: House and and from Ross, So we'll see how that 401 00:20:07,680 --> 00:20:11,359 Speaker 1: plays out. How are we staffed to do trade? I 402 00:20:11,440 --> 00:20:16,720 Speaker 1: mean across state, across commerce, etcetera, etcetera. Are we staffed? 403 00:20:16,920 --> 00:20:19,600 Speaker 1: Does anybody called in Ted Alden Well? I mean, no 404 00:20:19,760 --> 00:20:23,280 Speaker 1: part of this government is properly staffed. The Trump administration 405 00:20:23,400 --> 00:20:26,760 Speaker 1: is woefully behind and filling the key positions. It's starting 406 00:20:26,840 --> 00:20:30,639 Speaker 1: to happen slowly. In trade. Um, We've just had a 407 00:20:30,720 --> 00:20:34,879 Speaker 1: deputy U. S. Trade representative announced. There's a uh, you know, 408 00:20:35,040 --> 00:20:38,440 Speaker 1: an international Trade under secretary in place in commerce, but 409 00:20:38,520 --> 00:20:41,880 Speaker 1: it's still a kind of very thin layer at the top, 410 00:20:42,000 --> 00:20:44,720 Speaker 1: and and I think unfortunately it's very imbalanced. You've got 411 00:20:45,240 --> 00:20:50,080 Speaker 1: extraordinary representation from steel and other heavy industries. You know, 412 00:20:50,400 --> 00:20:53,280 Speaker 1: nothing in the senior ranks dealing with the very important 413 00:20:53,320 --> 00:20:57,160 Speaker 1: services part of the economy and financial services or banking, architecture, 414 00:20:57,200 --> 00:21:00,639 Speaker 1: anything else. You've got nothing dealing with intellectual property, industry, treas. Uh. 415 00:21:00,680 --> 00:21:03,040 Speaker 1: The agriculture side is still really weak. So a lot 416 00:21:03,119 --> 00:21:06,080 Speaker 1: of US trade interests are not yet well represented in 417 00:21:06,119 --> 00:21:09,240 Speaker 1: this administration. That's about the climate deal. I remember there 418 00:21:09,320 --> 00:21:11,000 Speaker 1: was some criticism I hope I'm remembering this right, some 419 00:21:11,080 --> 00:21:14,040 Speaker 1: criticism of the Trans Pacific Partnership because it didn't address 420 00:21:14,640 --> 00:21:18,360 Speaker 1: climate head on or in much detail or trade documents. 421 00:21:18,400 --> 00:21:21,119 Speaker 1: Good writers for things like a climate change In the 422 00:21:21,240 --> 00:21:23,919 Speaker 1: light of what we've seen over these last twelve eighteen 423 00:21:23,960 --> 00:21:26,440 Speaker 1: month after this this campaign and the rejection of the 424 00:21:26,480 --> 00:21:29,080 Speaker 1: Trans Pacific Partnership, are they going to become writers for 425 00:21:29,240 --> 00:21:32,000 Speaker 1: for issues like those? Well? Yeah, here's my concern on 426 00:21:32,280 --> 00:21:35,560 Speaker 1: on on Paris. The there's been a trade issue that's 427 00:21:35,640 --> 00:21:40,600 Speaker 1: under underlies all the discussion on on climate, and that is, 428 00:21:40,680 --> 00:21:44,200 Speaker 1: if you have some countries that are using a lot 429 00:21:44,320 --> 00:21:48,480 Speaker 1: of of cheap but dirty energy, are they thereby gaining 430 00:21:48,680 --> 00:21:52,640 Speaker 1: an unfair competitive advantage in global markets? And so you've 431 00:21:52,640 --> 00:21:56,520 Speaker 1: had the Europeans muse, for instance, about charging a carbon 432 00:21:56,640 --> 00:22:01,480 Speaker 1: tax on American exports to offset that advantage. The Canadians 433 00:22:01,520 --> 00:22:03,640 Speaker 1: have sort of mulled over the same idea. It's never 434 00:22:03,760 --> 00:22:06,680 Speaker 1: gotten uh to a point of being a serious threat yet, 435 00:22:06,720 --> 00:22:08,840 Speaker 1: But with the US now having pulled out of the 436 00:22:08,920 --> 00:22:13,679 Speaker 1: Paris Accords, I think that is a more genuine threat. 437 00:22:13,760 --> 00:22:16,240 Speaker 1: The US for a long time was a leader on 438 00:22:16,480 --> 00:22:21,639 Speaker 1: pushing for environmental related provisions in trade agreements. It now 439 00:22:21,760 --> 00:22:23,480 Speaker 1: seems to be on the other side of that issue. 440 00:22:23,520 --> 00:22:25,119 Speaker 1: And I think the Europeans are going to be pushing 441 00:22:25,160 --> 00:22:27,360 Speaker 1: that much more strongly. Something to that to me when 442 00:22:27,400 --> 00:22:29,879 Speaker 1: when Scott Prute was speaking in the Brady Press briefing 443 00:22:29,960 --> 00:22:32,119 Speaker 1: room after the President announced his decision to pull out 444 00:22:32,160 --> 00:22:35,240 Speaker 1: of the Paris Accord, uh, he was talking about going 445 00:22:35,320 --> 00:22:37,840 Speaker 1: back to the table to renegotiate the Paris deal, and 446 00:22:37,920 --> 00:22:39,679 Speaker 1: he said the US will always have a seat at 447 00:22:39,720 --> 00:22:42,320 Speaker 1: the table were the US And I wonder how that 448 00:22:42,440 --> 00:22:44,800 Speaker 1: rings out across Europe and around the world in light 449 00:22:44,840 --> 00:22:46,639 Speaker 1: of what we've seen with Paris, with the G seven, 450 00:22:47,040 --> 00:22:49,080 Speaker 1: with the NATO summit. To to an extent, is is 451 00:22:49,160 --> 00:22:52,200 Speaker 1: this administration overestimating its ability to get back to the 452 00:22:52,280 --> 00:22:55,600 Speaker 1: table to negotiate deals like the Paris Accord? I mean, 453 00:22:55,680 --> 00:22:57,480 Speaker 1: I do, actually, I mean the problem with that, and 454 00:22:57,600 --> 00:23:00,200 Speaker 1: you know, with that idea in the Paris or it 455 00:23:00,320 --> 00:23:03,680 Speaker 1: is that the targets were always voluntary under Paris, So 456 00:23:04,359 --> 00:23:06,320 Speaker 1: you know, the notion that you're going to somehow go 457 00:23:06,480 --> 00:23:09,080 Speaker 1: back and renegotiate it fundamentally, I just think it's kind 458 00:23:09,119 --> 00:23:11,080 Speaker 1: of nonsensical and I don't think the rest of the 459 00:23:11,119 --> 00:23:14,280 Speaker 1: world has any interest. It's extremely hard to put together 460 00:23:14,320 --> 00:23:16,520 Speaker 1: these multi country deals I mean we've seen that in trade. 461 00:23:16,840 --> 00:23:19,200 Speaker 1: We haven't had a successful World trade round now for 462 00:23:19,320 --> 00:23:21,840 Speaker 1: more than two decades because it's so hard to put 463 00:23:21,880 --> 00:23:23,920 Speaker 1: these deals together, you know. I think the same is 464 00:23:23,920 --> 00:23:26,000 Speaker 1: true with the transpecific partnership. I mean, the U S 465 00:23:26,080 --> 00:23:28,159 Speaker 1: if it wanted back in, I think could get back in. 466 00:23:28,760 --> 00:23:31,520 Speaker 1: But the notion that you're gonna redo that whole set 467 00:23:31,560 --> 00:23:34,200 Speaker 1: of negotiations, I don't think there's a lot of appetite 468 00:23:34,240 --> 00:23:36,080 Speaker 1: for that. I think other countries are gonna move forward 469 00:23:36,560 --> 00:23:40,240 Speaker 1: on their own without the United States. I think militarily, clearly, 470 00:23:40,280 --> 00:23:43,600 Speaker 1: the United States is indispensable. In economic terms, not so much. 471 00:23:43,960 --> 00:23:47,399 Speaker 1: Countries have lots of options that don't involve the United States. 472 00:23:47,800 --> 00:23:52,160 Speaker 1: Can a president have power within trade discussions? Is there 473 00:23:52,200 --> 00:23:56,000 Speaker 1: such a thing as an executive order or executive action 474 00:23:56,400 --> 00:24:01,359 Speaker 1: in the ted Alden world. Well, we'll leave it there. 475 00:24:01,400 --> 00:24:03,840 Speaker 1: We've got some difficulties. Our catting folio is at the 476 00:24:03,960 --> 00:24:06,720 Speaker 1: desk trying to figure out what's going. We think ted 477 00:24:06,800 --> 00:24:09,920 Speaker 1: Olden for being with us from our studios in Washington. 478 00:24:10,000 --> 00:24:11,800 Speaker 1: But there seems to me a fat was that you, 479 00:24:11,960 --> 00:24:16,040 Speaker 1: John Tucker, Nobody could understand your question. That's what it was. Okay, 480 00:24:16,160 --> 00:24:20,320 Speaker 1: I think, Dave David, I mean, isn't that a fair question? 481 00:24:20,400 --> 00:24:23,040 Speaker 1: I mean, the President is acted. We had the news 482 00:24:23,160 --> 00:24:26,040 Speaker 1: yesterday that he ripped up the NATO speech in some 483 00:24:26,240 --> 00:24:29,760 Speaker 1: way and acted almost at hock. I mean, can he 484 00:24:29,840 --> 00:24:31,600 Speaker 1: do that in trade? I'm not so sure he can, 485 00:24:32,280 --> 00:24:34,000 Speaker 1: but we are we are seeing h or we have 486 00:24:34,160 --> 00:24:36,440 Speaker 1: seen with counterfailing. Dude, he said this White House was 487 00:24:36,480 --> 00:24:38,800 Speaker 1: approaching things and more piece piece me away, and uh, 488 00:24:39,240 --> 00:24:40,920 Speaker 1: you know, I think that as we saw yesterday with 489 00:24:41,000 --> 00:24:43,120 Speaker 1: this letter that the President signed publicly, he is making 490 00:24:43,160 --> 00:24:45,280 Speaker 1: his intentions, knows about what he wants to wants to 491 00:24:45,320 --> 00:24:54,760 Speaker 1: see in a more formal way than his predecessor. Brought 492 00:24:54,840 --> 00:24:58,320 Speaker 1: you by Bank of America, Mary Lynch. With virtual reality, 493 00:24:58,600 --> 00:25:03,960 Speaker 1: virtually everything will change. Discover opportunities in a transforming world. 494 00:25:04,440 --> 00:25:08,720 Speaker 1: Be of a mL dot Com slash VR, Mary Lynch, 495 00:25:08,800 --> 00:25:17,720 Speaker 1: Pierce Fenner and Smith Incorporated. California gowner Jerry Brown signed 496 00:25:17,720 --> 00:25:21,200 Speaker 1: a cooperation agreement with China on climate positive trade and investment. 497 00:25:21,280 --> 00:25:24,080 Speaker 1: That move comes as President Trump announces the US withdraw 498 00:25:24,160 --> 00:25:27,639 Speaker 1: from the Paris Climate Agreement. Governor Brown discussed that initiative 499 00:25:27,680 --> 00:25:30,679 Speaker 1: with the Bloombergs to McKenzie are called Tom mackenzie in Beijing, 500 00:25:30,720 --> 00:25:34,000 Speaker 1: and let's listen to a bit of their conversation. We 501 00:25:34,160 --> 00:25:38,520 Speaker 1: can't reduce our carbon footprint unless we deal with transportation. 502 00:25:38,800 --> 00:25:42,919 Speaker 1: Transportation is of the greenhouse castes. The only way we're 503 00:25:42,920 --> 00:25:45,760 Speaker 1: gonna do that is with clean cars. The clean cars 504 00:25:45,960 --> 00:25:48,600 Speaker 1: are not just gonna come out of California, although that's 505 00:25:48,640 --> 00:25:50,920 Speaker 1: part of it. They're gonna come out of China and 506 00:25:51,440 --> 00:25:53,200 Speaker 1: other parts of the world. But I have to say 507 00:25:53,560 --> 00:25:56,640 Speaker 1: China is a real driver in the money they invest 508 00:25:57,080 --> 00:26:01,879 Speaker 1: in the diligence of their innovation, and I want California 509 00:26:01,960 --> 00:26:06,200 Speaker 1: the partner with China in that endeavor, otherwise we won't 510 00:26:06,200 --> 00:26:08,680 Speaker 1: be able to achieve our climate goals. And you talked 511 00:26:08,680 --> 00:26:11,280 Speaker 1: about innovation there. How much of a threat do you 512 00:26:11,359 --> 00:26:15,280 Speaker 1: think is opposed to US innovation in clean tech green 513 00:26:15,359 --> 00:26:19,000 Speaker 1: tech that they've led in in California but across the US. 514 00:26:19,280 --> 00:26:21,439 Speaker 1: How much of that is under threat now from Trump's 515 00:26:21,440 --> 00:26:25,000 Speaker 1: decision to pull out of the Paris Climate Accord. Well, 516 00:26:25,080 --> 00:26:28,600 Speaker 1: I think the role of America in the world has 517 00:26:28,680 --> 00:26:35,240 Speaker 1: been reduced because of Trump's pullout from the Paris Accord, 518 00:26:35,800 --> 00:26:39,040 Speaker 1: And in general, I'd say the Chinese are on the 519 00:26:39,119 --> 00:26:43,840 Speaker 1: move there are rising power. Writers are noticing how does 520 00:26:43,880 --> 00:26:48,520 Speaker 1: the rising power get along with power that maybe slowing 521 00:26:48,560 --> 00:26:51,840 Speaker 1: down a bit. So I would say that we're definitely 522 00:26:52,520 --> 00:26:56,720 Speaker 1: um facing competitive pressure, and at the same time, we're 523 00:26:56,840 --> 00:27:01,840 Speaker 1: very divided. We have a lot of issues about identity, 524 00:27:02,080 --> 00:27:06,280 Speaker 1: about politics. The Republicans are so divided from the Democrats. 525 00:27:06,800 --> 00:27:09,240 Speaker 1: I think we're gonna have to find more national unity 526 00:27:09,600 --> 00:27:13,679 Speaker 1: if we're gonna be able to maintain our leadership, let 527 00:27:13,800 --> 00:27:16,920 Speaker 1: all our so called dominance. I mean, China has got 528 00:27:16,960 --> 00:27:20,760 Speaker 1: one point three billion and they're investing in America now 529 00:27:21,359 --> 00:27:23,679 Speaker 1: at least of President Trump has his wife is going 530 00:27:23,720 --> 00:27:29,040 Speaker 1: to reduce their health, their medical investments, their energy investments, 531 00:27:29,600 --> 00:27:33,560 Speaker 1: and put most of their investment on on weapons. So 532 00:27:34,160 --> 00:27:37,400 Speaker 1: I would say that's short decided and under the best 533 00:27:37,520 --> 00:27:40,200 Speaker 1: of American leadership, we've got to work cut out for 534 00:27:40,359 --> 00:27:43,679 Speaker 1: us because China is so much bigger, and their command 535 00:27:43,800 --> 00:27:47,520 Speaker 1: economy along with capitalism and the market economy, is a 536 00:27:47,680 --> 00:27:51,760 Speaker 1: very powerful, uh combination that we're gonna have to find 537 00:27:52,440 --> 00:27:57,800 Speaker 1: in our diversity and our entrepreneurial spirit also a greater unity, 538 00:27:58,320 --> 00:28:01,160 Speaker 1: or we're gonna find that we want to lose markets. 539 00:28:01,600 --> 00:28:03,959 Speaker 1: That's California got to Jerry Brown in conversation with our 540 00:28:04,000 --> 00:28:07,160 Speaker 1: colleague Tom mackenzie, who was based in Beijing. Jerry Brown 541 00:28:07,280 --> 00:28:11,359 Speaker 1: in China signing agreement on climate with with the Chinese government. 542 00:28:11,359 --> 00:28:14,080 Speaker 1: Michael McKee are International Politics and Economics correspondent tuning us 543 00:28:14,080 --> 00:28:16,879 Speaker 1: here on Bloomberg eleven three oh Studios Now and Mike 544 00:28:16,920 --> 00:28:19,800 Speaker 1: I was struck just in the days following the US 545 00:28:19,840 --> 00:28:22,080 Speaker 1: decision to withdraw the president decision to withdraw from the 546 00:28:22,440 --> 00:28:24,399 Speaker 1: Paris Climate Agreement. How much of this was couched in 547 00:28:24,480 --> 00:28:28,119 Speaker 1: economic terms? You saw the statement from President Obama, president 548 00:28:28,160 --> 00:28:30,600 Speaker 1: Trump's predecessor, saying that that was what was going to 549 00:28:30,640 --> 00:28:34,240 Speaker 1: be lost largely by this, not really mentioning the environment 550 00:28:34,280 --> 00:28:36,000 Speaker 1: and some to some degree here, but really focusing on 551 00:28:36,040 --> 00:28:38,560 Speaker 1: the economics. Yeah. Well, President Trump made it all about 552 00:28:38,560 --> 00:28:42,120 Speaker 1: economics and the idea that the climate accord would cost 553 00:28:42,280 --> 00:28:46,880 Speaker 1: jobs in extraction industries like coal mining and uh and 554 00:28:47,160 --> 00:28:50,840 Speaker 1: you know other energy production. Uh, it may not really 555 00:28:50,960 --> 00:28:56,080 Speaker 1: do that because other factors are already weighing on those industries. 556 00:28:56,160 --> 00:28:58,720 Speaker 1: The price of natural gas is killing coal at this point. 557 00:28:59,160 --> 00:29:01,600 Speaker 1: You look at the Chinese ease. The pollution is so 558 00:29:01,720 --> 00:29:05,080 Speaker 1: bad they're mothballing plants at cold fire plants as fast 559 00:29:05,120 --> 00:29:08,320 Speaker 1: as they can. They set a goal of reducing their 560 00:29:09,120 --> 00:29:12,280 Speaker 1: having their carbon emissions peaked by and it looks like 561 00:29:12,360 --> 00:29:15,200 Speaker 1: they may beat that by ten years. Where we may 562 00:29:15,320 --> 00:29:18,719 Speaker 1: miss out on jobs is in the industries that might 563 00:29:18,760 --> 00:29:22,520 Speaker 1: be supported by federal dollars, you know, research and development 564 00:29:23,000 --> 00:29:29,120 Speaker 1: of clean energy opportunities. And that's what Governor Brown, along 565 00:29:29,160 --> 00:29:31,680 Speaker 1: with the idea of global warming and its impact on 566 00:29:31,760 --> 00:29:34,240 Speaker 1: the environment, that's what he is talking about. He signed 567 00:29:34,280 --> 00:29:37,600 Speaker 1: an agreement today with the Chinese to to work together 568 00:29:37,800 --> 00:29:42,000 Speaker 1: on developing electric vehicles. We forget this, but Governor Brown 569 00:29:43,000 --> 00:29:47,040 Speaker 1: was a driver of Plymouth satellites. He was so conservative 570 00:29:47,760 --> 00:29:51,200 Speaker 1: and he was so cool for school. He drove Plymouth satellites, 571 00:29:52,360 --> 00:29:56,840 Speaker 1: basic frugal cars. Is he a liberal, Oh very much so. 572 00:29:57,560 --> 00:30:00,320 Speaker 1: He's very much a liberal, and he's governed in a 573 00:30:00,560 --> 00:30:05,040 Speaker 1: very liberal state twice. Now. California is so big. It's 574 00:30:05,080 --> 00:30:07,280 Speaker 1: economy is the sixth biggest in the world, in the world, 575 00:30:07,560 --> 00:30:10,520 Speaker 1: and it has long been accused of having its own 576 00:30:10,560 --> 00:30:13,959 Speaker 1: foreign policy, and that is becoming coming into even starker 577 00:30:14,000 --> 00:30:17,640 Speaker 1: relief now with their disagreements from the Trump administration. And 578 00:30:17,880 --> 00:30:20,640 Speaker 1: you see that in this trip to China. All governors 579 00:30:20,720 --> 00:30:23,320 Speaker 1: go to China and pitch their states and come to 580 00:30:23,440 --> 00:30:26,240 Speaker 1: business with US and sign trade deals. But no governors 581 00:30:26,280 --> 00:30:28,920 Speaker 1: that I know of come out and issue foreign policy 582 00:30:28,960 --> 00:30:33,520 Speaker 1: declarations in opposition to the unit. Essentially he did. He 583 00:30:33,600 --> 00:30:37,120 Speaker 1: said that the Trump withdrawal from the Paris Accord will 584 00:30:37,360 --> 00:30:39,600 Speaker 1: be a significant problem for the world and for the 585 00:30:39,720 --> 00:30:43,160 Speaker 1: United States, and he committed California to work with China. 586 00:30:43,280 --> 00:30:44,960 Speaker 1: Are you gonna Are you gonna stay around so we 587 00:30:45,040 --> 00:30:48,040 Speaker 1: can talk predators hockey? We can talk predators hockey and 588 00:30:49,280 --> 00:30:54,240 Speaker 1: those I don't be well, the real question is is 589 00:30:54,280 --> 00:30:59,560 Speaker 1: the bad breath question? You know? Come on, it is 590 00:30:59,680 --> 00:31:14,600 Speaker 1: great hockey, That's what I know. I usually do my 591 00:31:14,640 --> 00:31:16,400 Speaker 1: Book of the year end of June into the fourth 592 00:31:16,520 --> 00:31:20,320 Speaker 1: July weekend. We can't do that because he's in the studio, 593 00:31:20,600 --> 00:31:22,520 Speaker 1: And so when the guest shows up in the studio, 594 00:31:22,920 --> 00:31:26,880 Speaker 1: particularly because he's usually a scon stuff outside Boston lecturing 595 00:31:27,560 --> 00:31:30,160 Speaker 1: at Tufts in the Fletcher School, we will do it. Now. 596 00:31:30,320 --> 00:31:32,720 Speaker 1: It's called the Leader's Bookshelf. It is the most odd 597 00:31:32,800 --> 00:31:36,200 Speaker 1: and twisted book of the year. Take a guy who 598 00:31:36,280 --> 00:31:38,560 Speaker 1: knows what he's doing, who reads a lot, go out 599 00:31:38,640 --> 00:31:40,960 Speaker 1: to fifty of his best friends and say, which fifty 600 00:31:41,040 --> 00:31:43,840 Speaker 1: books would you read? So with the Leader's Bookshelf you 601 00:31:43,920 --> 00:31:45,840 Speaker 1: get about when you get more than fifty, you get 602 00:31:45,880 --> 00:31:48,440 Speaker 1: like seventy or eighty books. Were basically a lot of 603 00:31:48,520 --> 00:31:50,840 Speaker 1: people smarter than you and me say shut up and 604 00:31:50,920 --> 00:31:54,840 Speaker 1: read this, and it's proven very, very successful. James Travisis 605 00:31:54,920 --> 00:31:58,720 Speaker 1: joins his x U S Retired our et period U 606 00:31:58,960 --> 00:32:02,280 Speaker 1: S Navy. Which book did you learn about as you 607 00:32:02,360 --> 00:32:06,360 Speaker 1: put the Leader's Bookshelf together? Which book surprised you? The 608 00:32:06,440 --> 00:32:10,600 Speaker 1: book that really surprised me was Connecticut Yankee in King 609 00:32:10,760 --> 00:32:13,959 Speaker 1: Arthur's Court, which was suggested by my friends. Stay Captain 610 00:32:14,000 --> 00:32:17,880 Speaker 1: Courageous is in there as well. Indeed mine was Connecticut 611 00:32:17,960 --> 00:32:22,160 Speaker 1: Yankee King Arthur's Court, Mark Twain, suggested by General Stan McCrystal. 612 00:32:22,280 --> 00:32:26,320 Speaker 1: It's a book Tom about innovation and leadership. Here's a 613 00:32:26,800 --> 00:32:29,680 Speaker 1: nineteenth century engineer goes back a thousand years in time. 614 00:32:29,800 --> 00:32:33,360 Speaker 1: By definition, he's the smartest person on the planet, but 615 00:32:33,480 --> 00:32:36,800 Speaker 1: he can't get anybody to do anything. He has all 616 00:32:36,840 --> 00:32:40,920 Speaker 1: the right answers, but he has to drive innovation home. Terrific. 617 00:32:41,040 --> 00:32:44,640 Speaker 1: What would President Trump learn from reading Kipling's Captain's courageous. 618 00:32:45,200 --> 00:32:49,400 Speaker 1: He would understand the courage that is needed by men 619 00:32:49,520 --> 00:32:51,600 Speaker 1: and women who go into combat. And I think it 620 00:32:51,600 --> 00:32:53,920 Speaker 1: would weigh heavily on him as he makes some hard 621 00:32:54,000 --> 00:32:57,720 Speaker 1: decisions coming up about, for example, more troops to Afghanistan, 622 00:32:57,880 --> 00:33:00,840 Speaker 1: more troops to Syria. Let's tail this with your your 623 00:33:00,880 --> 00:33:04,160 Speaker 1: new book. Pretty prolific. Anastadis with the new book See Power, 624 00:33:04,400 --> 00:33:07,640 Speaker 1: The History and Geopolitics of the World's Oceans. It's part history, 625 00:33:08,240 --> 00:33:10,240 Speaker 1: part prescription for what should happen when it comes to 626 00:33:10,320 --> 00:33:12,840 Speaker 1: our maritime issues, and also memoir. And you write about 627 00:33:12,880 --> 00:33:15,400 Speaker 1: the first time that you stepped onto vessel sailed across 628 00:33:15,560 --> 00:33:17,880 Speaker 1: the Pacific. When were you reading when we when you 629 00:33:17,920 --> 00:33:19,400 Speaker 1: were in the navy, when when did you find time 630 00:33:19,440 --> 00:33:20,960 Speaker 1: to do it? How important was reading to you as 631 00:33:21,000 --> 00:33:22,320 Speaker 1: you worked your way up? They only worked like a 632 00:33:22,400 --> 00:33:26,720 Speaker 1: three hours. Hey, you know, as mayor may not surprise you. 633 00:33:26,880 --> 00:33:30,360 Speaker 1: Of all the services the navy, officers and men and 634 00:33:30,440 --> 00:33:33,920 Speaker 1: women are sailors are huge readers. Why because it does 635 00:33:34,040 --> 00:33:37,120 Speaker 1: take time to get from San Diego, California, to the 636 00:33:37,160 --> 00:33:40,320 Speaker 1: Arabian Gulf. You're not in danger while you're steam in there. 637 00:33:40,800 --> 00:33:43,440 Speaker 1: You stand watch, you make sure the ocean is not 638 00:33:43,600 --> 00:33:46,840 Speaker 1: gonna take out something on your ship. But at the 639 00:33:46,960 --> 00:33:48,560 Speaker 1: end of the day, you have time to read. So 640 00:33:49,240 --> 00:33:51,400 Speaker 1: many sailors are readers, and I tried to pour all 641 00:33:51,480 --> 00:33:53,600 Speaker 1: that into Sea Power, And that's how the two books 642 00:33:53,640 --> 00:33:56,240 Speaker 1: fit together. How important is our navy right now? When 643 00:33:56,240 --> 00:33:58,440 Speaker 1: you look at all of the conflicts around the world, 644 00:33:58,480 --> 00:34:00,760 Speaker 1: what role is the U. S. Navy play? This is 645 00:34:00,840 --> 00:34:04,080 Speaker 1: the heart of the book. And frankly, it's three things. 646 00:34:04,280 --> 00:34:07,280 Speaker 1: It's trade and making sure that these global commons are 647 00:34:07,400 --> 00:34:10,560 Speaker 1: open as as you all know of the world's trade 648 00:34:10,640 --> 00:34:14,840 Speaker 1: moves by sea. Secondly, it's the alliances and the geopolitics 649 00:34:15,200 --> 00:34:18,840 Speaker 1: because Russia and China are rising in this capability. We 650 00:34:18,920 --> 00:34:21,000 Speaker 1: don't have a free ride. The oceans are not in 651 00:34:21,000 --> 00:34:23,880 Speaker 1: American Lake. We've got to compete. And thirdly, it's the 652 00:34:24,080 --> 00:34:28,520 Speaker 1: environment of the oxygen that we breathe actually comes from 653 00:34:28,520 --> 00:34:31,880 Speaker 1: photosynthesis in the seas. They are crucial for us. There 654 00:34:31,920 --> 00:34:33,680 Speaker 1: are plenty of people you among them, calling for a 655 00:34:33,760 --> 00:34:36,880 Speaker 1: bigger navy, for for more ships. Square that for us. 656 00:34:36,960 --> 00:34:40,120 Speaker 1: We have a huge navy compared to other countries around 657 00:34:40,160 --> 00:34:41,719 Speaker 1: the world. Why does it need to be bigger? Why 658 00:34:41,760 --> 00:34:44,520 Speaker 1: do we need more vessels at this point, let's do 659 00:34:44,680 --> 00:34:47,439 Speaker 1: the numbers. UM. We have two hundred and seventy five 660 00:34:47,719 --> 00:34:52,000 Speaker 1: warships today that are capable of offensive combat operations. Every 661 00:34:52,080 --> 00:34:55,000 Speaker 1: responsible analyst says we need three hundred and fifty, David, 662 00:34:55,080 --> 00:34:58,080 Speaker 1: and that's because of the scope and scale of what 663 00:34:58,239 --> 00:35:00,399 Speaker 1: we need to do. We're in the East durn Met 664 00:35:00,560 --> 00:35:03,120 Speaker 1: jostling with the Russians over Syria. We are in the 665 00:35:03,160 --> 00:35:06,879 Speaker 1: Arabian Gulf trying to keep Guitar and Saudi Arabia from 666 00:35:06,960 --> 00:35:10,200 Speaker 1: blowing up and keeping Iran from closing the Strait of 667 00:35:10,280 --> 00:35:13,000 Speaker 1: hor moves where in the South China Sea where China 668 00:35:13,080 --> 00:35:15,960 Speaker 1: is attempting to take over the entire body. And we're 669 00:35:16,000 --> 00:35:18,560 Speaker 1: in the Arctic plane hunt for Red October. We've got 670 00:35:18,600 --> 00:35:20,200 Speaker 1: a lot of needs for ships. We need to go 671 00:35:20,280 --> 00:35:23,000 Speaker 1: from to seventy five to three fifty. Tim Alex Lacki 672 00:35:23,120 --> 00:35:26,320 Speaker 1: writes it up in Business Insider. It's Lady goulf I, 673 00:35:26,440 --> 00:35:30,000 Speaker 1: think again. We have three aircraft carriers, two cruisers, twelve 674 00:35:30,120 --> 00:35:33,160 Speaker 1: destroyers trying not to run into each other at night 675 00:35:33,800 --> 00:35:38,200 Speaker 1: somewhere in the vicinity of North Korea. Should we how 676 00:35:38,280 --> 00:35:42,320 Speaker 1: should our listeners interpret that animal? Um, it's rare to 677 00:35:42,480 --> 00:35:45,920 Speaker 1: put three aircraft carriers together, but it's not unheard of. 678 00:35:46,400 --> 00:35:49,400 Speaker 1: It sends a powerful signal. The first thing any president 679 00:35:49,480 --> 00:35:52,600 Speaker 1: asked as crisis looms is where are the carriers? When 680 00:35:52,640 --> 00:35:56,239 Speaker 1: a president puts three of them together, Secretary Maddis knows 681 00:35:56,480 --> 00:35:59,560 Speaker 1: the impact of this. It's a strong signal to North Korea. 682 00:35:59,600 --> 00:36:02,759 Speaker 1: That's what going on. Do we know where the carriers are? 683 00:36:02,920 --> 00:36:05,080 Speaker 1: Can they be like a submarine where they're sort of 684 00:36:05,160 --> 00:36:07,800 Speaker 1: out there but nobody knows where they are. We know 685 00:36:07,920 --> 00:36:11,520 Speaker 1: where they are always, obviously, but it's hard for others 686 00:36:11,600 --> 00:36:14,440 Speaker 1: to track. These things can move tom at a thousand 687 00:36:14,560 --> 00:36:17,919 Speaker 1: miles a day, So these are big machines of war. 688 00:36:18,280 --> 00:36:25,000 Speaker 1: Seven acre flight deck, eight combat are absolutely deal. Indeed, 689 00:36:25,040 --> 00:36:29,560 Speaker 1: I commanded Enterprise carrier and she could go up towards 690 00:36:29,640 --> 00:36:32,960 Speaker 1: thirty five not she had eight nuclear reactors. Never needed. 691 00:36:33,360 --> 00:36:37,440 Speaker 1: Big misconception that we have about Enterprise or other carriers. 692 00:36:37,520 --> 00:36:40,279 Speaker 1: The public, what's what's the thing we get most wrong? 693 00:36:40,680 --> 00:36:43,200 Speaker 1: I think the public would say, well, these ships must 694 00:36:43,239 --> 00:36:46,960 Speaker 1: be invulnerable. There are a hundred thousand tons. They're just enormous. 695 00:36:47,000 --> 00:36:51,040 Speaker 1: They have all this defensive capability, but unfortunately they are 696 00:36:51,160 --> 00:36:56,600 Speaker 1: vulnerable to see minds, to hypersonic cruise missiles, two submarines, 697 00:36:56,840 --> 00:37:00,320 Speaker 1: so we have to have the destroyers and crew users 698 00:37:00,400 --> 00:37:02,719 Speaker 1: around them to protect them. I think the public doesn't 699 00:37:02,719 --> 00:37:07,600 Speaker 1: appreciate the integrated defense that's required for these beautiful, beautiful carriers. 700 00:37:07,680 --> 00:37:09,240 Speaker 1: We'll come back here in just a minute. But what's 701 00:37:09,360 --> 00:37:11,279 Speaker 1: what's on the horizon when it comes to technology, what 702 00:37:11,360 --> 00:37:14,040 Speaker 1: future ships look like? We hear about the literal combat vehicle, 703 00:37:14,040 --> 00:37:15,920 Speaker 1: all of that. What's what's the ship of the future 704 00:37:15,960 --> 00:37:17,920 Speaker 1: look like. It kind of looks like what you'd picture 705 00:37:17,960 --> 00:37:22,839 Speaker 1: as Batman's destroyer. It's very modernistic, it's got stealth technology, 706 00:37:23,239 --> 00:37:27,359 Speaker 1: it may be able to semi submerge, it'll operate more 707 00:37:27,600 --> 00:37:31,520 Speaker 1: unmanned vehicles often, and above all, it'll be much more 708 00:37:31,640 --> 00:37:35,439 Speaker 1: hardened for cyber conflict, because that's where war is going. 709 00:37:35,719 --> 00:37:37,759 Speaker 1: Come back here with m James Stefred is now the 710 00:37:37,880 --> 00:37:39,959 Speaker 1: Fletchery School of Tough author of See Power, The History 711 00:37:40,000 --> 00:37:43,000 Speaker 1: and Geopolitics of the World's Great Oceans. To Admirals, say 712 00:37:43,040 --> 00:37:46,080 Speaker 1: read it. Mr Mullen, Admiral mccraven is all a captain 713 00:37:46,160 --> 00:37:49,400 Speaker 1: says read it. He would be John McCain of Arizona 714 00:37:49,920 --> 00:37:52,480 Speaker 1: and Robert Gates has read it as well see Power. 715 00:37:52,760 --> 00:37:57,360 Speaker 1: Very thoughtful about is David mentioned the geography of our oceans. 716 00:37:57,360 --> 00:38:00,520 Speaker 1: We're gonna come back with Admiral Stevidus lots to talk about, 717 00:38:00,560 --> 00:38:04,399 Speaker 1: including uh, some of the vignettes from his Leader's Book. 718 00:38:04,440 --> 00:38:06,040 Speaker 1: It is my book of the summer, and we'll do 719 00:38:06,120 --> 00:38:08,280 Speaker 1: a lot with that in the next four or five weeks. 720 00:38:08,520 --> 00:38:10,319 Speaker 1: We're eve gonna try to force Michael bar to read 721 00:38:10,360 --> 00:38:14,680 Speaker 1: it as well. Read Read Leader's Bookshop David Gara and 722 00:38:14,719 --> 00:38:16,719 Speaker 1: Tom Keene in New York. This is Bloomberg Surveillance on 723 00:38:16,760 --> 00:38:19,440 Speaker 1: Bloomberg Radio here with retired Anaeld James to read is 724 00:38:19,440 --> 00:38:21,680 Speaker 1: the author of Sea Power, The History and Geopolitics of 725 00:38:21,719 --> 00:38:25,160 Speaker 1: the World's Oceans. And we were talking yesterday with Larry Summers, 726 00:38:25,680 --> 00:38:28,040 Speaker 1: University professor at Harvard about a piece that was in 727 00:38:28,040 --> 00:38:29,759 Speaker 1: the Wall Street Jurnal not just about a week ago 728 00:38:29,920 --> 00:38:32,200 Speaker 1: by Lieutenant Generally A char McMaster and Gary Khen, the 729 00:38:32,520 --> 00:38:34,680 Speaker 1: Chairman of the National Economic Council at the White House. 730 00:38:34,719 --> 00:38:37,160 Speaker 1: They were laying out their vision or the White House's 731 00:38:37,200 --> 00:38:39,640 Speaker 1: vision here for the USS role in the world. A 732 00:38:39,680 --> 00:38:42,320 Speaker 1: big theme throughout your book, your new book is the 733 00:38:42,360 --> 00:38:45,759 Speaker 1: importance of alliances and Uh, I wonder what you've made 734 00:38:46,480 --> 00:38:48,480 Speaker 1: about that piece in the Wall Street. You know what 735 00:38:48,560 --> 00:38:49,880 Speaker 1: we saw at the G seven, what we saw at 736 00:38:49,880 --> 00:38:53,399 Speaker 1: the Native summit preceding, and how worried you are about 737 00:38:53,440 --> 00:38:55,440 Speaker 1: what the trans atlantic relationship is going to look like, 738 00:38:55,560 --> 00:38:56,960 Speaker 1: what the U. S has role in the world is 739 00:38:57,000 --> 00:38:59,320 Speaker 1: going to be. I talk a lot in Sea Power 740 00:38:59,520 --> 00:39:02,320 Speaker 1: about the way we should think of the oceans. We 741 00:39:02,400 --> 00:39:06,040 Speaker 1: tend to, unfortunately think of them as discreete little lakes. 742 00:39:06,120 --> 00:39:09,720 Speaker 1: The Mediterranean Sea, the Caribbean, the Atlantic. They're all connected. 743 00:39:10,080 --> 00:39:13,000 Speaker 1: So I am very worried that we are. You would 744 00:39:13,000 --> 00:39:16,640 Speaker 1: say in the investment world, we're undervaluing, We're underweight in 745 00:39:16,800 --> 00:39:19,680 Speaker 1: the alliances right now because the White House is not 746 00:39:20,000 --> 00:39:23,080 Speaker 1: making the right moves to reassure allies and get them 747 00:39:23,320 --> 00:39:25,879 Speaker 1: in this case to see with US. NATO has good 748 00:39:25,920 --> 00:39:29,360 Speaker 1: capability in that regard, but we're dismissing it and not 749 00:39:29,600 --> 00:39:33,000 Speaker 1: building the alliance structure we need for maritime operations. When 750 00:39:33,040 --> 00:39:36,120 Speaker 1: you look at the team of advisors that President Trump has, 751 00:39:36,200 --> 00:39:38,600 Speaker 1: and we've talked about how it's smaller than you might expect, 752 00:39:38,640 --> 00:39:40,880 Speaker 1: there are a lot of jobs that haven't been filled 753 00:39:40,920 --> 00:39:43,279 Speaker 1: filled yet. Are you satisfied that there are people. They're 754 00:39:43,320 --> 00:39:46,360 Speaker 1: giving him the right advice or nuanced advice, or the 755 00:39:46,440 --> 00:39:48,879 Speaker 1: kind of information he needs to do his job well. 756 00:39:48,880 --> 00:39:50,520 Speaker 1: Whether or not he accepts that or works off of 757 00:39:50,560 --> 00:39:53,279 Speaker 1: it is another question. But are those people around him? 758 00:39:53,280 --> 00:39:55,520 Speaker 1: Are they there in government right now? He's got the 759 00:39:55,680 --> 00:39:58,239 Speaker 1: right team at the very top, David, But there are 760 00:39:58,360 --> 00:40:02,040 Speaker 1: no deputy secretaries there, or no assistant secretaries the next 761 00:40:02,160 --> 00:40:05,840 Speaker 1: level down. There are no senior executive service. We have 762 00:40:05,960 --> 00:40:08,560 Speaker 1: no secretary of the Navy, and a gaping hole in 763 00:40:08,719 --> 00:40:10,440 Speaker 1: the size of our fleet, as I talked about in 764 00:40:10,480 --> 00:40:14,799 Speaker 1: Sea Power, So that nuanced advice is at the very top, 765 00:40:14,920 --> 00:40:17,000 Speaker 1: and it's not clear to me he's listening or acting 766 00:40:17,080 --> 00:40:19,480 Speaker 1: on it either. I brought it up the day came out. 767 00:40:19,520 --> 00:40:21,479 Speaker 1: Thank you Bodin for giving me the heads up. David 768 00:40:21,560 --> 00:40:24,200 Speaker 1: from Row in The Atlantic, David Brooks in the New 769 00:40:24,280 --> 00:40:27,080 Speaker 1: York Times. Laurence Summers was with us a few days ago, 770 00:40:27,760 --> 00:40:30,440 Speaker 1: all talking about this concept of arena, which to me 771 00:40:30,560 --> 00:40:32,759 Speaker 1: is out of Game of Thrones or an old child 772 00:40:32,840 --> 00:40:36,440 Speaker 1: in Heston movie. How does a grizzled military veteran like 773 00:40:36,600 --> 00:40:40,400 Speaker 1: you look at the comedy of a politician speaking of 774 00:40:40,760 --> 00:40:45,480 Speaker 1: an arena? Arenas as a term and the way we 775 00:40:45,560 --> 00:40:48,080 Speaker 1: ought to think about it is the last resort. We 776 00:40:48,120 --> 00:40:49,840 Speaker 1: don't want to go into an arena anymore than we 777 00:40:50,040 --> 00:40:52,239 Speaker 1: want to go into the thunder dome to go in 778 00:40:53,680 --> 00:40:55,640 Speaker 1: the wrong way to think about it. We need to 779 00:40:55,680 --> 00:40:59,719 Speaker 1: be finding solutions that are collaborative, especially at sea in 780 00:40:59,800 --> 00:41:04,200 Speaker 1: this maritime world. Arena really bad mental map. I want 781 00:41:04,200 --> 00:41:06,080 Speaker 1: to go back to one of the books in my 782 00:41:06,440 --> 00:41:10,640 Speaker 1: my book of the Summer, the Leader's Book of Yours, Admiral, 783 00:41:11,280 --> 00:41:13,760 Speaker 1: and there's those points where you just stopped den your tracks. 784 00:41:13,800 --> 00:41:16,239 Speaker 1: And it may be in April Harriman, who served for years, 785 00:41:16,360 --> 00:41:19,719 Speaker 1: or John hay Of of hundred and fifty years ago, 786 00:41:19,840 --> 00:41:23,320 Speaker 1: Lincoln secretary who worked with Roosevelt. There's a point in 787 00:41:23,360 --> 00:41:26,879 Speaker 1: the end of Eric Larrabie's book on f DR where 788 00:41:27,040 --> 00:41:31,800 Speaker 1: James Longstreet's wife, his young wife is a riveter in 789 00:41:32,080 --> 00:41:36,120 Speaker 1: a World War Two factory in Georgia. Who was the 790 00:41:36,400 --> 00:41:40,640 Speaker 1: oldest general or type you worked with? You were out 791 00:41:41,040 --> 00:41:44,759 Speaker 1: n nobody wanted to join the navy you did. Who 792 00:41:44,960 --> 00:41:49,400 Speaker 1: was the elder that you saw within your career? Um 793 00:41:49,640 --> 00:41:53,440 Speaker 1: The admiral who most impressed me in terms of longevity 794 00:41:53,920 --> 00:41:57,080 Speaker 1: was Admiral Verne Clark, who was a chief in naval operations, 795 00:41:57,239 --> 00:41:59,720 Speaker 1: and he was came out of the mold of Admiral 796 00:42:00,160 --> 00:42:03,839 Speaker 1: Lee Burke. He was a destroyer officer. He operated high 797 00:42:03,920 --> 00:42:06,920 Speaker 1: speed at sea, but deep and thoughtful when he came 798 00:42:06,960 --> 00:42:11,279 Speaker 1: ashore in the Pentagon. Those kind of figures for all 799 00:42:11,360 --> 00:42:13,319 Speaker 1: of us who pull us along in our lives, are 800 00:42:13,400 --> 00:42:16,560 Speaker 1: crucial you Right as I said, the book is part memoir, 801 00:42:16,680 --> 00:42:20,040 Speaker 1: and each of these chapters is divided by a different ocean. 802 00:42:20,160 --> 00:42:23,600 Speaker 1: You start with the Pacific, there's the Atlantic, Mediterranean, Arctic. Uh, 803 00:42:24,080 --> 00:42:25,840 Speaker 1: there's the experience of going to those places for the 804 00:42:25,960 --> 00:42:28,000 Speaker 1: for the first time. In the romance associated with that, 805 00:42:28,239 --> 00:42:29,840 Speaker 1: you say that your dad was not one who was 806 00:42:29,920 --> 00:42:31,560 Speaker 1: fond of being on the sea. You you end up 807 00:42:31,640 --> 00:42:34,840 Speaker 1: joining the the Navy. When you look at recruitment today, 808 00:42:35,200 --> 00:42:37,279 Speaker 1: young people who are weighing whether or not to join 809 00:42:37,360 --> 00:42:39,359 Speaker 1: the service, how do you how do you what's your 810 00:42:39,360 --> 00:42:41,000 Speaker 1: sense of how how likely they are to do that? 811 00:42:41,120 --> 00:42:42,720 Speaker 1: What is the Navy need to do more to recruit 812 00:42:42,760 --> 00:42:46,040 Speaker 1: people to following your footsteps to join the Navy. Well, 813 00:42:46,120 --> 00:42:48,480 Speaker 1: and first of all, that's essentially why I wrote the 814 00:42:48,480 --> 00:42:51,480 Speaker 1: book to talk to the next generation of sailors coming along. 815 00:42:51,560 --> 00:42:54,160 Speaker 1: And uh uh in part what I had learned, which 816 00:42:54,480 --> 00:42:56,840 Speaker 1: was simply a pass through of what others had taught me. 817 00:42:57,040 --> 00:43:01,640 Speaker 1: David Um the Navy needs to help identify that to 818 00:43:01,800 --> 00:43:03,920 Speaker 1: be on a ship at sea is is being part 819 00:43:03,960 --> 00:43:06,879 Speaker 1: of a long continuous line that goes back thousands of years, 820 00:43:07,280 --> 00:43:09,600 Speaker 1: That it's in office with the best view in the world. 821 00:43:10,000 --> 00:43:12,560 Speaker 1: That you bond with your shipmates in a way you 822 00:43:12,800 --> 00:43:15,480 Speaker 1: can't in any other profession, and that you live a 823 00:43:15,560 --> 00:43:18,120 Speaker 1: life of adventure and travel. Not a bad package if 824 00:43:18,160 --> 00:43:21,160 Speaker 1: you think about it. Mother of all oceans, the cradle 825 00:43:21,239 --> 00:43:26,040 Speaker 1: of colonization, the future see the Mediterranean rewar at sea began, 826 00:43:26,160 --> 00:43:30,760 Speaker 1: the likely zone of conflict installed in the past, Caribbean 827 00:43:31,520 --> 00:43:36,120 Speaker 1: promise in peril up north and is Admiral Stevida's mentioned 828 00:43:36,160 --> 00:43:39,600 Speaker 1: the outlaw sea oceans as crime scenes. The new book 829 00:43:39,680 --> 00:43:45,160 Speaker 1: is Sea Power, History and Geopolitics of the World's Oceans. Uh, 830 00:43:45,520 --> 00:43:47,520 Speaker 1: we will take a close look at that. Just it 831 00:43:47,640 --> 00:43:51,040 Speaker 1: just outright like the movie right today today today today, 832 00:43:51,680 --> 00:43:54,240 Speaker 1: if the movie rights, did you force everybody it toughs 833 00:43:54,280 --> 00:43:58,280 Speaker 1: to buy this? I did. And also also they've already 834 00:43:58,360 --> 00:44:01,720 Speaker 1: cast me in the movie. It's gonna be Danny DeVito. 835 00:44:04,680 --> 00:44:09,600 Speaker 1: George Clooney inexplicably turned the part see power with Danny 836 00:44:09,680 --> 00:44:14,720 Speaker 1: DeVito looked for that Memorial Day, fourth of July two thousand, 837 00:44:15,520 --> 00:44:19,000 Speaker 1: nineteen April James de Vitus of Tufts and Fletcher School 838 00:44:19,360 --> 00:44:34,640 Speaker 1: as well. I think he did listen to me. He 839 00:44:34,760 --> 00:44:38,520 Speaker 1: didn't decide what I wanted him to decide, and I 840 00:44:38,680 --> 00:44:43,480 Speaker 1: think he decided wrong. I think it's not good, not 841 00:44:43,600 --> 00:44:45,880 Speaker 1: in the best interest in the United States what he decided. 842 00:44:46,560 --> 00:44:51,360 Speaker 1: And uh so. But but in terms of you know, 843 00:44:51,440 --> 00:44:53,279 Speaker 1: the way that I look at this thing, and do 844 00:44:53,440 --> 00:44:58,160 Speaker 1: you do you interact with politicians or do you not? Um? 845 00:44:59,160 --> 00:45:03,960 Speaker 1: My view is that first and foremost things are about 846 00:45:05,000 --> 00:45:07,759 Speaker 1: can you help your country? And if you can help 847 00:45:07,840 --> 00:45:11,279 Speaker 1: your country and you do that about interacting, then you 848 00:45:11,440 --> 00:45:15,439 Speaker 1: do it. You have other people that are leaving the table, though, 849 00:45:15,600 --> 00:45:19,400 Speaker 1: like Bob Eiger, like Elon Musk is the President jeopardizing 850 00:45:19,520 --> 00:45:22,400 Speaker 1: his relationship with one of his key constituencies. That would 851 00:45:22,400 --> 00:45:27,960 Speaker 1: differentiate leaving a council and advising in a way that 852 00:45:28,120 --> 00:45:32,320 Speaker 1: you think can help our country. And I think the 853 00:45:33,239 --> 00:45:36,759 Speaker 1: first one is a judgment call that people make. Uh 854 00:45:37,320 --> 00:45:40,279 Speaker 1: I didn't join a council. And so it's not a 855 00:45:40,360 --> 00:45:43,120 Speaker 1: decision I had to make. But but I understand both 856 00:45:43,200 --> 00:45:48,120 Speaker 1: sides of that. Uh. But but advising on something that 857 00:45:48,320 --> 00:45:52,200 Speaker 1: you believe will help America, I think is a is 858 00:45:52,320 --> 00:45:57,080 Speaker 1: a is a requirement as a as A as a CEO, 859 00:45:57,360 --> 00:46:00,880 Speaker 1: you you definitely do that. And you know, if, honestly, 860 00:46:00,920 --> 00:46:04,800 Speaker 1: if I get the chance to, uh go pitch the 861 00:46:05,520 --> 00:46:08,360 Speaker 1: Paris Agreement again, I'm gonna do it again because I 862 00:46:08,520 --> 00:46:12,680 Speaker 1: think it's very important that we engage to fight climate 863 00:46:12,800 --> 00:46:16,920 Speaker 1: change on a on a global basis. This isn't something 864 00:46:17,160 --> 00:46:22,880 Speaker 1: where you can solve it country by country. It requires 865 00:46:23,200 --> 00:46:27,040 Speaker 1: a global action. You know, omissions created in one country 866 00:46:27,160 --> 00:46:31,360 Speaker 1: affect another. And uh so you know, it's something that 867 00:46:31,440 --> 00:46:34,279 Speaker 1: we feel very strongly about. And uh I wanted to 868 00:46:34,400 --> 00:46:39,600 Speaker 1: do every single thing that we could do to um 869 00:46:40,320 --> 00:46:43,239 Speaker 1: to tell how important it was to to stay in 870 00:46:43,280 --> 00:46:47,160 Speaker 1: the agreement. Why didn't you join a council? Why didn't I? Because? 871 00:46:47,480 --> 00:46:51,320 Speaker 1: Uh two reasons. One, my primary job is being the 872 00:46:51,440 --> 00:46:55,080 Speaker 1: CEO of the company, and I spend the bulk of 873 00:46:55,160 --> 00:46:58,759 Speaker 1: my waking hours doing that, and and I do so 874 00:46:58,920 --> 00:47:01,480 Speaker 1: willingly because I of the company and the people in it, 875 00:47:02,000 --> 00:47:06,440 Speaker 1: and so traveling back East isn't something that I that 876 00:47:06,600 --> 00:47:11,320 Speaker 1: I look forward to doing except when I need to do. Secondly, 877 00:47:11,840 --> 00:47:17,160 Speaker 1: I don't find these councils in general and committees to 878 00:47:17,239 --> 00:47:22,279 Speaker 1: be terribly productive. And uh, but but it it wasn't 879 00:47:22,320 --> 00:47:27,879 Speaker 1: about not wanting to advise on something where I thought that, um, 880 00:47:28,680 --> 00:47:31,479 Speaker 1: you know, we could help or we had a point 881 00:47:31,520 --> 00:47:34,480 Speaker 1: of view that should be heard. And so I'm doing 882 00:47:34,600 --> 00:47:38,320 Speaker 1: the ladder. I can't imagine a situation where I wouldn't 883 00:47:38,320 --> 00:47:39,719 Speaker 1: do the ladder because I think it's in the best 884 00:47:39,760 --> 00:47:42,719 Speaker 1: transience of America to do it, and I am first 885 00:47:42,760 --> 00:47:55,360 Speaker 1: and foremost in America. Thanks for listening to the Bloomberg 886 00:47:55,400 --> 00:48:01,719 Speaker 1: Savannahs podcast. Subscribe and listen to interviews on Apple Podcasts, SoundCloud, 887 00:48:02,120 --> 00:48:05,920 Speaker 1: or whichever podcast platform you prefer. I'm on Twitter at 888 00:48:05,960 --> 00:48:10,640 Speaker 1: Tom Keene. David Gura is at David Gura. Before the podcast, 889 00:48:10,960 --> 00:48:25,479 Speaker 1: you could always catch us worldwide. I'm Bloomberg Radio runt 890 00:48:25,560 --> 00:48:29,000 Speaker 1: you by Bank of America Mary Lynch. With virtual reality, 891 00:48:29,320 --> 00:48:34,680 Speaker 1: virtually everything will change. Discover opportunities in a transforming world, 892 00:48:35,120 --> 00:48:39,399 Speaker 1: be of a mL dot Com, slash VR, Mary Lynch, 893 00:48:39,520 --> 00:48:41,840 Speaker 1: Pierced Fenner and Smith Incorporated,