1 00:00:04,760 --> 00:00:08,080 Speaker 1: Welcome to the Bloomberg P and L Podcast. I'm pim Fox. 2 00:00:08,119 --> 00:00:11,200 Speaker 1: Along with my co host Lisa Abramowitz. Each day we 3 00:00:11,280 --> 00:00:14,480 Speaker 1: bring you the most important, noteworthy, and useful interviews for 4 00:00:14,520 --> 00:00:16,880 Speaker 1: you and your money, whether at the grocery store or 5 00:00:16,920 --> 00:00:20,680 Speaker 1: the trading floor. Find the Bloomberg P L Podcast on iTunes, 6 00:00:20,840 --> 00:00:30,400 Speaker 1: SoundCloud and at Bloomberg dot com. President elect Donald Trump 7 00:00:30,440 --> 00:00:36,160 Speaker 1: had threatened to impose tariffs on automobiles made in Mexico 8 00:00:36,360 --> 00:00:40,600 Speaker 1: by g M, and as part of the automotive industry's 9 00:00:40,600 --> 00:00:44,640 Speaker 1: response to President elect Donald Trump, Ford Motor Company has 10 00:00:44,760 --> 00:00:47,880 Speaker 1: decided that it will not spend one point six billion 11 00:00:47,920 --> 00:00:51,680 Speaker 1: dollars to create a new manufacturing plant in San Luis 12 00:00:51,720 --> 00:00:56,560 Speaker 1: Potoso in Mexico. Well, Shannon Petty Pieces are White House correspondent, 13 00:00:56,720 --> 00:00:59,200 Speaker 1: and she joins us, Now, I know you're at the 14 00:00:59,280 --> 00:01:02,960 Speaker 1: Trump Tower in Midtown Manhattan todaytion and but you're focusing 15 00:01:03,080 --> 00:01:10,080 Speaker 1: on the NAFTA regulations that would prevent the imposition of tariffs. 16 00:01:10,080 --> 00:01:14,440 Speaker 1: Can you explain a little bit more about this contradiction? Right? So, 17 00:01:14,640 --> 00:01:18,760 Speaker 1: under NAFTA, um, you know, uh, goods are able to 18 00:01:18,800 --> 00:01:23,000 Speaker 1: flow tariff free between Mexico and the US and Canada. 19 00:01:23,040 --> 00:01:25,760 Speaker 1: In the US and vice versa and so forth. Um. 20 00:01:26,040 --> 00:01:29,679 Speaker 1: Yesterday Trump tweeted, uh, you know, called out GM for 21 00:01:29,800 --> 00:01:33,320 Speaker 1: importing a car made in Mexico into the US. UM, 22 00:01:33,920 --> 00:01:36,480 Speaker 1: and you know edited with you know, something along the 23 00:01:36,520 --> 00:01:38,920 Speaker 1: lines of, you know, uh, if you import products here, 24 00:01:38,959 --> 00:01:40,760 Speaker 1: you're gonna have to pay a big border tax. Well, 25 00:01:41,000 --> 00:01:44,440 Speaker 1: under NAFTA border tax, the tariff on goods coming into 26 00:01:44,480 --> 00:01:47,440 Speaker 1: the US from Mexico is in violation of that agreement. 27 00:01:47,640 --> 00:01:50,080 Speaker 1: So if Trump is going to carry through on his 28 00:01:50,560 --> 00:01:53,440 Speaker 1: commitment that he made on the campaign trail knights continuing 29 00:01:53,480 --> 00:01:56,040 Speaker 1: to read right now about putting attacks on goods coming 30 00:01:56,040 --> 00:01:58,400 Speaker 1: in through Mexico, then that it's going to be in 31 00:01:58,520 --> 00:02:02,240 Speaker 1: violation of NAFTA. And if you violate NAFTA, which uh 32 00:02:02,400 --> 00:02:07,200 Speaker 1: no presidents violated a trade agreement since the eighteen hundreds. So, UM, 33 00:02:07,360 --> 00:02:11,079 Speaker 1: we don't know exactly what would happen, but one possibility is, 34 00:02:11,360 --> 00:02:14,799 Speaker 1: you know, Mexico rule would retaliate then with its own 35 00:02:14,800 --> 00:02:17,680 Speaker 1: set of tariffs. UM, and then you get into the 36 00:02:17,680 --> 00:02:20,920 Speaker 1: trade war, and uh, you know, a whole variable of 37 00:02:20,960 --> 00:02:23,639 Speaker 1: things can play out from there. But uh, that's sort 38 00:02:23,680 --> 00:02:26,520 Speaker 1: of what we talk about when we see uh President 39 00:02:26,520 --> 00:02:29,720 Speaker 1: electrov going on, and you know, discussing things like a 40 00:02:29,800 --> 00:02:33,720 Speaker 1: border tax, uh, you know, from imports to Mexico. Well, indeed, 41 00:02:33,760 --> 00:02:36,960 Speaker 1: in your most recent story, Shannon, you have a quote 42 00:02:37,000 --> 00:02:40,720 Speaker 1: from Republican Senator Rob Portman of Ohio. Tell us what 43 00:02:40,800 --> 00:02:45,360 Speaker 1: he was talking about. Well, the concern here with you know, 44 00:02:45,440 --> 00:02:50,800 Speaker 1: putting a border tax on with exiting NAFTA or you know, 45 00:02:50,919 --> 00:02:54,880 Speaker 1: getting into a trade war is that, Um, the okay? 46 00:02:54,919 --> 00:02:57,360 Speaker 1: So sure, you know, it would make cars made in 47 00:02:57,400 --> 00:03:02,560 Speaker 1: the US more competitive, It might encourage companies to make 48 00:03:02,560 --> 00:03:04,839 Speaker 1: more products in the US, but also means goods coming 49 00:03:04,840 --> 00:03:07,160 Speaker 1: in from Mexico go up in price. So all the 50 00:03:07,160 --> 00:03:10,000 Speaker 1: Mexican made goods that we buy that are sold in 51 00:03:10,080 --> 00:03:12,160 Speaker 1: stores like Walmart are going to go up in price. 52 00:03:12,480 --> 00:03:15,480 Speaker 1: And also if you're a US manufacturer and you're importing 53 00:03:15,800 --> 00:03:18,120 Speaker 1: you know, let's say the fabric or the styrofoam when 54 00:03:18,120 --> 00:03:21,639 Speaker 1: your seek cushions for the chairs that you're going to 55 00:03:21,720 --> 00:03:24,519 Speaker 1: be manufacturing in the US, the price of those important 56 00:03:24,639 --> 00:03:28,720 Speaker 1: manufactured goods go up. So uh, that's the concern of 57 00:03:29,080 --> 00:03:31,519 Speaker 1: what could happen here. Of course, there's there's ways to 58 00:03:31,600 --> 00:03:36,640 Speaker 1: do this. NAFTA could be renegotiated. Um, we you know, 59 00:03:36,920 --> 00:03:39,640 Speaker 1: could have a trade war and the air and prices 60 00:03:39,640 --> 00:03:42,240 Speaker 1: of stuff from Mexico go up, but there's taxes or 61 00:03:42,240 --> 00:03:44,360 Speaker 1: other incentives to offset it. I mean, there's there is 62 00:03:44,880 --> 00:03:46,920 Speaker 1: a lot of variables that could play out. But the 63 00:03:47,000 --> 00:03:50,680 Speaker 1: concern is that you know, you put tariffs on cars 64 00:03:50,720 --> 00:03:53,400 Speaker 1: coming in from Mexico, Mexico retaliates and the cost of 65 00:03:53,440 --> 00:03:55,800 Speaker 1: all sorts of good starts going up. And also the 66 00:03:56,080 --> 00:03:59,680 Speaker 1: I should mentioned yeah, then the US manufacturers exporting UH 67 00:04:00,000 --> 00:04:04,560 Speaker 1: good to Mexico also get hurt. Now, the authority of 68 00:04:04,720 --> 00:04:10,640 Speaker 1: the president when Donald Trump, after he's inaugurated on January twenty, 69 00:04:11,240 --> 00:04:14,080 Speaker 1: his power will be what I mean, will he be 70 00:04:14,240 --> 00:04:18,039 Speaker 1: able to He doesn't. He has to forward any changes 71 00:04:18,120 --> 00:04:24,600 Speaker 1: to treaties UH to the Senate. Right though, under there's 72 00:04:24,640 --> 00:04:28,600 Speaker 1: a clause, a very short clause in the NaSTA agreement 73 00:04:28,680 --> 00:04:32,480 Speaker 1: that would give the power of the president to just 74 00:04:32,640 --> 00:04:37,040 Speaker 1: completely exit the agreement altogether. And he has said on 75 00:04:37,120 --> 00:04:39,880 Speaker 1: the campaign trail that he could use that article of 76 00:04:39,960 --> 00:04:45,200 Speaker 1: the agreement to exit NAPTA. UM. He has said, rather, 77 00:04:45,279 --> 00:04:47,760 Speaker 1: what he'd like to do is renegotiate it and get 78 00:04:47,839 --> 00:04:51,040 Speaker 1: us a really a really great deal and much better 79 00:04:51,200 --> 00:04:53,280 Speaker 1: terms for the US as part of the agreement. But 80 00:04:53,600 --> 00:04:56,560 Speaker 1: if Mexico and Canada did not play along, he could 81 00:04:56,600 --> 00:05:01,240 Speaker 1: exercise that powers and just withdraw from the treaty. And 82 00:05:01,440 --> 00:05:04,680 Speaker 1: also the president would have what the ability to impose 83 00:05:05,320 --> 00:05:09,800 Speaker 1: a duty for one days, claiming what is described as 84 00:05:09,880 --> 00:05:15,640 Speaker 1: a balance payments emergency. What is that? Yeah, So, so 85 00:05:15,920 --> 00:05:19,400 Speaker 1: then let's say we did exit from NASA. UM Trump 86 00:05:19,440 --> 00:05:21,800 Speaker 1: said he'd want to put a thirty percent tariff on 87 00:05:21,920 --> 00:05:24,839 Speaker 1: goods coming from Mexico. Um, he would not be able 88 00:05:24,960 --> 00:05:27,880 Speaker 1: to do that because even if we did, I guess 89 00:05:28,000 --> 00:05:32,159 Speaker 1: at least legally, uh, even if we did exit NASA, 90 00:05:32,520 --> 00:05:34,760 Speaker 1: then in ports of Mexico would have a four percent 91 00:05:34,880 --> 00:05:38,839 Speaker 1: tariff on them under the most Favored Nation status, they 92 00:05:38,880 --> 00:05:42,200 Speaker 1: would get this four percent tariff. Um he could put 93 00:05:42,240 --> 00:05:44,960 Speaker 1: a higher trap, that fiercent tariff on but only for 94 00:05:45,040 --> 00:05:48,480 Speaker 1: a limited period of a hundred days. Longer term, the 95 00:05:48,560 --> 00:05:50,760 Speaker 1: most terror and the biggest therapy will be able to 96 00:05:50,800 --> 00:05:54,240 Speaker 1: put on would be four percent, unless, of course, you know, 97 00:05:54,360 --> 00:05:58,480 Speaker 1: at least with his with the unilateral powers of the presidency. Indeed, 98 00:05:58,560 --> 00:06:00,680 Speaker 1: all right, well, we'll be watching this story, and thank 99 00:06:00,760 --> 00:06:03,520 Speaker 1: you for covering at Shannon Petty piece are White House 100 00:06:03,600 --> 00:06:07,159 Speaker 1: correspondent for Bloomberg News. Today, she is at Trump Tower 101 00:06:07,320 --> 00:06:22,080 Speaker 1: in Midtown Manhattan. He decided to build a better bank, 102 00:06:22,240 --> 00:06:25,200 Speaker 1: and he did so. Frank Sarantino is the chief executive 103 00:06:25,279 --> 00:06:28,120 Speaker 1: officer of Connect One Bank. They're based in Englewood Cliffs, 104 00:06:28,200 --> 00:06:30,280 Speaker 1: New Jersey, and he joins me. Now, Frank, thanks for 105 00:06:30,360 --> 00:06:32,800 Speaker 1: coming in great to see this idea that do you 106 00:06:32,920 --> 00:06:35,680 Speaker 1: built the bank. You went through kind of a start 107 00:06:35,760 --> 00:06:38,360 Speaker 1: where you know, you had traditional bankers in charge, and 108 00:06:38,480 --> 00:06:41,200 Speaker 1: now you know you've been running the bank for a while. 109 00:06:41,320 --> 00:06:43,920 Speaker 1: What is different about having a person who was formerly 110 00:06:44,000 --> 00:06:46,880 Speaker 1: a customer run a bank than just someone who is 111 00:06:47,040 --> 00:06:50,440 Speaker 1: only in the banking industry. So you know, from my perspective, 112 00:06:50,560 --> 00:06:53,600 Speaker 1: it's just bringing more of an entrepreneurial spirit to to 113 00:06:53,920 --> 00:06:57,120 Speaker 1: to the business itself. And this is a highly regulated 114 00:06:57,600 --> 00:07:00,840 Speaker 1: industry and for many many years, the things the way 115 00:07:00,960 --> 00:07:02,960 Speaker 1: they've always been done, and so we just think a 116 00:07:03,000 --> 00:07:06,159 Speaker 1: little bit differently about everything we do connect One Bank. 117 00:07:06,240 --> 00:07:08,640 Speaker 1: We think about the customer and everything we do. We 118 00:07:09,160 --> 00:07:11,520 Speaker 1: we assume the customer is in every one of our meetings. 119 00:07:11,600 --> 00:07:13,760 Speaker 1: Whenever we have a conversation about what to do, what 120 00:07:13,880 --> 00:07:16,680 Speaker 1: to do next, how we're going to run our organization. Uh, 121 00:07:16,760 --> 00:07:19,840 Speaker 1: and I think that that pervades the entire thought process 122 00:07:19,920 --> 00:07:22,640 Speaker 1: of how we do things. We we really work hard 123 00:07:22,720 --> 00:07:24,600 Speaker 1: to work with a sense of urgency to get things 124 00:07:24,640 --> 00:07:27,720 Speaker 1: done quickly at the speed that business demands. All right, 125 00:07:27,760 --> 00:07:29,720 Speaker 1: well let's let well and it's a little bit different, 126 00:07:29,760 --> 00:07:32,200 Speaker 1: then let me then let's go to some specifics if 127 00:07:32,240 --> 00:07:36,280 Speaker 1: we can. For example, regulatory reform and Dodd Frank legislation 128 00:07:36,560 --> 00:07:39,800 Speaker 1: is certainly a topic in Washington, d C. I'm sure 129 00:07:39,800 --> 00:07:42,200 Speaker 1: it's a topic in your office is as well. What 130 00:07:42,360 --> 00:07:44,400 Speaker 1: do you expect to happen and what effect will it have. 131 00:07:45,040 --> 00:07:47,360 Speaker 1: So there's lots of talk in the industry today about 132 00:07:47,400 --> 00:07:52,040 Speaker 1: a complete repeal of Dodd Frank. That's probably unlikely. What's 133 00:07:52,080 --> 00:07:56,040 Speaker 1: more likely is a real cost benefit analysis. This is 134 00:07:56,080 --> 00:07:59,280 Speaker 1: an industry that has always operated with regulations and will 135 00:07:59,320 --> 00:08:01,560 Speaker 1: continue to op rate with regulations. We're not going to 136 00:08:01,640 --> 00:08:04,560 Speaker 1: be the Wild West with no regulation. But there are 137 00:08:04,640 --> 00:08:07,680 Speaker 1: lots of regulations that were put in place specifically since 138 00:08:07,760 --> 00:08:10,800 Speaker 1: Dodd Frank that really have no cost benefit analysis and 139 00:08:10,920 --> 00:08:13,560 Speaker 1: really may not benefit anyone. And and the amount of 140 00:08:13,960 --> 00:08:16,680 Speaker 1: data that needs to be collected and reported upon really 141 00:08:16,760 --> 00:08:19,600 Speaker 1: doesn't reflect the risk that's in the marketplace, and so 142 00:08:19,680 --> 00:08:22,400 Speaker 1: I think we're gonna look at more sensible regulation. Would 143 00:08:22,440 --> 00:08:25,680 Speaker 1: be an example of one regulation that you feel is 144 00:08:25,920 --> 00:08:29,600 Speaker 1: not necessarily beneficial to either you or to the customer. 145 00:08:29,680 --> 00:08:31,960 Speaker 1: So let's take it right to main street and the 146 00:08:32,040 --> 00:08:34,400 Speaker 1: ability for a banker to make what used to be 147 00:08:34,480 --> 00:08:37,440 Speaker 1: known as a character loan. I know you, I knew 148 00:08:37,480 --> 00:08:39,600 Speaker 1: your family. You know we know you had the store 149 00:08:39,640 --> 00:08:42,880 Speaker 1: in town for the last forty years. You've never uh 150 00:08:43,280 --> 00:08:45,679 Speaker 1: never not paid your debts. Yet if we don't have 151 00:08:46,160 --> 00:08:50,160 Speaker 1: every single piece of financial documentation that can demonstrate that 152 00:08:50,559 --> 00:08:52,800 Speaker 1: not only can you make the payments, but you can 153 00:08:52,880 --> 00:08:55,520 Speaker 1: pay off the loan at maturity, we can't make that 154 00:08:55,600 --> 00:08:58,280 Speaker 1: loan to you. And so today that's a that's a challenge, 155 00:08:58,320 --> 00:09:01,000 Speaker 1: and that's hurting small business. On the flip side of that, 156 00:09:01,240 --> 00:09:02,880 Speaker 1: you know, someone who wants to buy a home with 157 00:09:02,960 --> 00:09:06,800 Speaker 1: the qualified Mortgage standards UM is making it much more 158 00:09:06,880 --> 00:09:09,719 Speaker 1: difficult today for first time home buyers to purchase that 159 00:09:09,720 --> 00:09:12,360 Speaker 1: at home. The bank doesn't have as much discretion as 160 00:09:12,400 --> 00:09:15,320 Speaker 1: it used to have in the past about deciding who 161 00:09:15,480 --> 00:09:17,959 Speaker 1: is a qualified borrower and who isn't based on the 162 00:09:18,080 --> 00:09:20,800 Speaker 1: bank uh Now it has to be a standard that 163 00:09:20,840 --> 00:09:23,160 Speaker 1: we can apply across the entire fifty states in the 164 00:09:23,240 --> 00:09:25,120 Speaker 1: United States, and I don't think that's I don't think 165 00:09:25,120 --> 00:09:27,280 Speaker 1: that's appropriate. And I think we're seeing the impact of that. 166 00:09:27,360 --> 00:09:31,400 Speaker 1: We're seeing home ownership leg uh for for the reasons 167 00:09:31,480 --> 00:09:33,200 Speaker 1: that people can't come up with the down payment. Now 168 00:09:33,240 --> 00:09:35,480 Speaker 1: there are other reasons as well, but this is certainly 169 00:09:35,559 --> 00:09:39,760 Speaker 1: one of the reasons. Has bureaucracy replaced common sense? Absolutely, 170 00:09:40,520 --> 00:09:43,880 Speaker 1: we've definitely, I think the pendulum swings, and in this 171 00:09:44,040 --> 00:09:46,719 Speaker 1: particular case, I think we have swung the pendulum to 172 00:09:46,800 --> 00:09:50,000 Speaker 1: the place where, uh, it's more important to think about 173 00:09:50,040 --> 00:09:53,000 Speaker 1: what the rules say as opposed to what makes sense. Uh. 174 00:09:53,240 --> 00:09:56,400 Speaker 1: And you know there's also this happens in business, but 175 00:09:56,760 --> 00:09:59,560 Speaker 1: clearly in banking, there's a fear of failure. We can 176 00:09:59,640 --> 00:10:02,360 Speaker 1: never have a bank ever fail, and I don't think 177 00:10:02,440 --> 00:10:04,959 Speaker 1: that's the standard. I think I think we this is 178 00:10:05,559 --> 00:10:08,040 Speaker 1: you know, this is a a capitalist society, and I 179 00:10:08,080 --> 00:10:11,040 Speaker 1: think people make decisions, and we have the appropriate amounts 180 00:10:11,080 --> 00:10:14,439 Speaker 1: of capital required to charter a bank, but I think 181 00:10:14,440 --> 00:10:16,960 Speaker 1: it's up to management in those boards to make those decisions. 182 00:10:17,200 --> 00:10:19,320 Speaker 1: I also believe we should never have an institution that's 183 00:10:19,360 --> 00:10:21,240 Speaker 1: too big to fail, right, that we could never have 184 00:10:21,480 --> 00:10:24,480 Speaker 1: that that failure take place. But the notion that no 185 00:10:24,640 --> 00:10:27,800 Speaker 1: bank should ever fail under any circumstances, I think it 186 00:10:27,920 --> 00:10:30,480 Speaker 1: is really harming the industry. It sounds like a good 187 00:10:30,640 --> 00:10:32,280 Speaker 1: sounds like a good thing to do, right, it sounds 188 00:10:32,360 --> 00:10:34,680 Speaker 1: like it makes sense. But at the end of the day, UH, 189 00:10:34,760 --> 00:10:38,040 Speaker 1: think about any other industry where you would say, under 190 00:10:38,160 --> 00:10:41,560 Speaker 1: no circumstances can there be a failure? UM, that'd still 191 00:10:41,559 --> 00:10:44,880 Speaker 1: be a lot of buggy with businesses and other industries 192 00:10:45,120 --> 00:10:47,640 Speaker 1: today that I'm not so sure you'd want around interesting 193 00:10:47,720 --> 00:10:51,080 Speaker 1: point talk about tax reform and what you perceive is likely. 194 00:10:51,960 --> 00:10:55,599 Speaker 1: So I think UM tax reform is probably one of 195 00:10:55,679 --> 00:10:59,719 Speaker 1: the most likely outcomes of the recent election. I think 196 00:10:59,760 --> 00:11:03,400 Speaker 1: it will benefit certainly in the short term UM. Many 197 00:11:03,640 --> 00:11:07,000 Speaker 1: companies banks included banks paying enormous People don't realize, but 198 00:11:07,080 --> 00:11:10,360 Speaker 1: banks pay a tremendous amount of tax for both federal 199 00:11:10,400 --> 00:11:13,400 Speaker 1: and state taxes UH, and so any reduction in those 200 00:11:13,520 --> 00:11:17,440 Speaker 1: tax rates will not only benefit other companies. But as 201 00:11:17,520 --> 00:11:20,400 Speaker 1: you know, if if a bank benefits and has more 202 00:11:21,200 --> 00:11:24,520 Speaker 1: UH net income, that goes to capital and allows banks 203 00:11:24,559 --> 00:11:26,720 Speaker 1: to make more loans. So I think that will benefit 204 00:11:27,040 --> 00:11:31,480 Speaker 1: the economy greatly. On top of which, if everyone has 205 00:11:31,559 --> 00:11:34,040 Speaker 1: is stated, gets some sort of a tax break, that's 206 00:11:34,080 --> 00:11:36,320 Speaker 1: money coming into the economy. And I think we're seeing 207 00:11:36,360 --> 00:11:40,079 Speaker 1: signs that the markets already reacted to that. The market 208 00:11:40,160 --> 00:11:42,079 Speaker 1: has already reacted that. Do you think the market is 209 00:11:42,160 --> 00:11:45,360 Speaker 1: overreacted to that? Well, that's that's to be seen. Right 210 00:11:45,400 --> 00:11:48,439 Speaker 1: There are those who say we're just getting going, and 211 00:11:48,760 --> 00:11:51,480 Speaker 1: there are those who say it's overreacted, and there's still 212 00:11:51,640 --> 00:11:53,800 Speaker 1: lots of forces that will bring the market back to 213 00:11:54,559 --> 00:11:57,600 Speaker 1: back to earth. I'm of the I'm in the camp 214 00:11:57,720 --> 00:12:00,560 Speaker 1: that I think this is the a a great amount 215 00:12:00,559 --> 00:12:02,439 Speaker 1: of liquidity that we're going to need today, and I 216 00:12:02,480 --> 00:12:05,480 Speaker 1: think the market is reacting appropriately to what it sees 217 00:12:05,600 --> 00:12:08,120 Speaker 1: is the most probable outcome to whether or not we 218 00:12:08,200 --> 00:12:10,520 Speaker 1: get tax reform. I just want to bring this headline 219 00:12:10,559 --> 00:12:13,720 Speaker 1: to you that President elect Donald Trump has named Jay 220 00:12:13,840 --> 00:12:19,120 Speaker 1: Clayton to head the Securities in Exchange Commission. Jake Clayton 221 00:12:19,320 --> 00:12:23,800 Speaker 1: is a lawyer, and he would succeed Securities and Exchanged 222 00:12:24,040 --> 00:12:28,720 Speaker 1: chairman Mary Joe White, another lawyer. Clayton met with Trump 223 00:12:29,160 --> 00:12:33,440 Speaker 1: in early December and is a partner at Sullivan and Cromwell, 224 00:12:33,480 --> 00:12:36,080 Speaker 1: where he worked on the initial public offering of Ali 225 00:12:36,200 --> 00:12:42,240 Speaker 1: Baba Group. UM. Frank last point to business sentiment more loans, 226 00:12:42,320 --> 00:12:44,760 Speaker 1: less loans, kinds of loans. Give us some details. So 227 00:12:44,920 --> 00:12:48,679 Speaker 1: in keeping with the tax discussion, Certainly, people feeling that 228 00:12:48,720 --> 00:12:51,280 Speaker 1: they're going to have more money, whether it's a person 229 00:12:51,520 --> 00:12:54,800 Speaker 1: or even businesses that think that they're going to either 230 00:12:55,040 --> 00:12:58,120 Speaker 1: have more wages or more in the way of net income. 231 00:12:58,679 --> 00:13:01,120 Speaker 1: UM certainly feel better about out the future. And we're 232 00:13:01,160 --> 00:13:04,199 Speaker 1: seeing that our client base to connect one definitely has 233 00:13:04,280 --> 00:13:08,520 Speaker 1: been coming back to us. UH. Certainly those that are 234 00:13:08,960 --> 00:13:12,280 Speaker 1: any way affiliated with any type of infrastructure building right engineers, 235 00:13:12,320 --> 00:13:16,400 Speaker 1: environmental firms, architectural firms, UH, investors, real estate people are 236 00:13:16,640 --> 00:13:19,920 Speaker 1: very very optimistic about what the future looks like to them, 237 00:13:20,480 --> 00:13:23,560 Speaker 1: and we're starting to see that sentiments spill over into 238 00:13:23,600 --> 00:13:26,200 Speaker 1: the request that we're seeing today, and I think people 239 00:13:26,200 --> 00:13:27,880 Speaker 1: are willing to stretch a little bit based on what 240 00:13:27,960 --> 00:13:30,520 Speaker 1: they believe the future looks like. Thanks very much for 241 00:13:30,600 --> 00:13:33,559 Speaker 1: coming in. Always great give us some details about the 242 00:13:33,600 --> 00:13:38,040 Speaker 1: banking industry and about what might change in in this year. 243 00:13:38,559 --> 00:13:42,280 Speaker 1: Frank Sorrentino is the chief executive officer of Connect One Bank. 244 00:13:42,280 --> 00:13:44,959 Speaker 1: They're based in Englewood Cliffs, New Jersey. Is also the 245 00:13:45,000 --> 00:14:00,120 Speaker 1: founder of the bank. All right, let's get smart when 246 00:14:00,120 --> 00:14:02,880 Speaker 1: it comes to healthcare in the United States with Brian Ry. 247 00:14:03,040 --> 00:14:06,760 Speaker 1: He is our senior healthcare policy analyst for Bloomberg Intelligence 248 00:14:06,800 --> 00:14:09,599 Speaker 1: for their government team. Joining us from Washington, d C. 249 00:14:09,800 --> 00:14:12,640 Speaker 1: Home to Bloomberg and one oh five point seven h 250 00:14:12,800 --> 00:14:17,480 Speaker 1: D two. Brian, there is a battle going on right 251 00:14:17,600 --> 00:14:23,160 Speaker 1: now in Washington, even before President elect Donald Trump is inaugurated, 252 00:14:23,480 --> 00:14:26,480 Speaker 1: having to do with the Affordable Care Act perhaps a 253 00:14:26,560 --> 00:14:30,840 Speaker 1: better known as Obamacare. What is happening and what are 254 00:14:31,080 --> 00:14:33,640 Speaker 1: we witnessing? Oh? I guess you know, happy New Year 255 00:14:33,680 --> 00:14:37,200 Speaker 1: and here we go, thanks for how quick? Uh? You know? 256 00:14:37,360 --> 00:14:41,200 Speaker 1: The Republicans, you know, campaigned on a promise for the 257 00:14:41,280 --> 00:14:44,400 Speaker 1: last six years of repealing and replacing Obamacare, and for 258 00:14:44,520 --> 00:14:46,280 Speaker 1: the last six years it's sort of been a toothless 259 00:14:46,320 --> 00:14:49,080 Speaker 1: promise because President Obama had a veto thread in the 260 00:14:49,160 --> 00:14:51,560 Speaker 1: office in the in the White House that's going away now. 261 00:14:51,680 --> 00:14:53,920 Speaker 1: And so now they're sort of the dog that's caught 262 00:14:53,960 --> 00:14:55,400 Speaker 1: the car. What are you going to do with it 263 00:14:55,480 --> 00:14:57,520 Speaker 1: now that you've actually caught it? Uh? And you have 264 00:14:57,640 --> 00:15:00,440 Speaker 1: to actually back up those promises. So the Hotter fifteenth 265 00:15:00,480 --> 00:15:03,400 Speaker 1: Congress UH was sworn in yesterday, So they are ready 266 00:15:03,440 --> 00:15:06,120 Speaker 1: to go there looking to using looking at using a 267 00:15:06,200 --> 00:15:09,520 Speaker 1: process and we'll get into details, but a budget reconciliation 268 00:15:09,640 --> 00:15:13,440 Speaker 1: process that won't repeal Obamacare, award for word, but it 269 00:15:13,560 --> 00:15:16,840 Speaker 1: can repeal or at least terminate several key provisions, the 270 00:15:16,960 --> 00:15:20,160 Speaker 1: insurance mandates, the Medicaid expansion, a lot of the taxes 271 00:15:20,200 --> 00:15:23,440 Speaker 1: imposed by the law. Um. But then the question becomes, well, Okay, 272 00:15:23,640 --> 00:15:25,800 Speaker 1: you've done that, what are you going to replace it with? 273 00:15:26,200 --> 00:15:28,000 Speaker 1: And how long is it going to take for that 274 00:15:28,120 --> 00:15:31,480 Speaker 1: transition to take place. Well, clearly there's going to be 275 00:15:31,640 --> 00:15:34,560 Speaker 1: a debate about it, because the President Obama has just 276 00:15:34,760 --> 00:15:37,640 Speaker 1: left the or is leaving the capital after a strategy 277 00:15:37,720 --> 00:15:40,640 Speaker 1: meeting with Democrats. I don't know what went on in 278 00:15:40,720 --> 00:15:42,520 Speaker 1: the meeting, but I would imagine it has to do 279 00:15:42,880 --> 00:15:46,640 Speaker 1: with providing a defense for many of the provisions of 280 00:15:46,760 --> 00:15:49,480 Speaker 1: the Affordable Care Act. Well, that's it, and I think 281 00:15:49,520 --> 00:15:51,200 Speaker 1: at the end of the day, you're going to see 282 00:15:51,200 --> 00:15:54,560 Speaker 1: you actually several of those provisions remain in whatever replacement 283 00:15:54,680 --> 00:15:58,200 Speaker 1: vehicle Republicans come up with, such as protections for those 284 00:15:58,280 --> 00:16:01,240 Speaker 1: with pre existing conditions being able for you know, kids 285 00:16:01,320 --> 00:16:04,120 Speaker 1: to stay on their parents plan until age six, um. 286 00:16:04,520 --> 00:16:07,120 Speaker 1: But you know how long that actually takes in Well, 287 00:16:07,480 --> 00:16:10,080 Speaker 1: how can you get there without having the the unpopular 288 00:16:10,120 --> 00:16:11,920 Speaker 1: parts of the law, you know, the mandates and the 289 00:16:12,000 --> 00:16:15,640 Speaker 1: penalties and and the rising premiums that that you know, frankly, 290 00:16:15,880 --> 00:16:17,600 Speaker 1: you know have been an effect. And I think that's 291 00:16:17,640 --> 00:16:19,360 Speaker 1: one of the reasons why we have a president elect 292 00:16:19,400 --> 00:16:23,080 Speaker 1: Trump and a Republican controlled Congress, unlike what happened in 293 00:16:23,120 --> 00:16:25,840 Speaker 1: two thousand ten when Democrats controlled everything. Is the law 294 00:16:25,920 --> 00:16:29,000 Speaker 1: hasn't quite worked as well as the Democrats would have hoped, 295 00:16:29,440 --> 00:16:30,840 Speaker 1: but they do have some things they can point to 296 00:16:30,920 --> 00:16:33,280 Speaker 1: that people do like. And if there's any disruption along 297 00:16:33,360 --> 00:16:36,040 Speaker 1: the way, that's certainly going to create some political headwinds, 298 00:16:36,040 --> 00:16:38,560 Speaker 1: because you're right, Democrats are going to shine as bright 299 00:16:38,640 --> 00:16:42,040 Speaker 1: as spotlet as they possibly can on any stories about 300 00:16:42,080 --> 00:16:45,400 Speaker 1: people losing their coverage along the way, um, whatever the 301 00:16:45,440 --> 00:16:48,080 Speaker 1: Republicans claim they're trying to do. I just also want 302 00:16:48,080 --> 00:16:51,120 Speaker 1: to mention that president of Vice President elect that Mike 303 00:16:51,240 --> 00:16:55,920 Speaker 1: Pence visited the capital earlier four meetings on the healthcare bill. 304 00:16:56,240 --> 00:17:01,120 Speaker 1: Presumably that is about Republicans put putting forth the contrary plan. 305 00:17:02,000 --> 00:17:04,920 Speaker 1: Can you tell us are there any Republicans that would 306 00:17:04,960 --> 00:17:07,200 Speaker 1: need to be won over in the Senate in order 307 00:17:07,280 --> 00:17:09,879 Speaker 1: to change provisions of the Affordable Care Act? Or they 308 00:17:09,960 --> 00:17:12,760 Speaker 1: all on board? I think they're all conceptually on board. 309 00:17:12,800 --> 00:17:14,359 Speaker 1: But you know, when push comes to shove, they have 310 00:17:14,480 --> 00:17:17,080 Speaker 1: you know, a majority of fifty two uh in in 311 00:17:17,160 --> 00:17:20,000 Speaker 1: the Senate, so not much room to spare. I think, Steve, 312 00:17:20,040 --> 00:17:22,399 Speaker 1: the topics of discussion are going to be, Okay, you know, 313 00:17:22,920 --> 00:17:24,800 Speaker 1: how long are we going to let people linger if 314 00:17:24,800 --> 00:17:26,960 Speaker 1: we're going to say, okay, we're gonna repeal everything now, 315 00:17:27,560 --> 00:17:30,760 Speaker 1: but not come up with a replacement plan until I 316 00:17:30,840 --> 00:17:33,960 Speaker 1: think you might see some a few senators be on 317 00:17:34,040 --> 00:17:36,800 Speaker 1: the edge about that, um. But conversely, I think others 318 00:17:36,800 --> 00:17:39,600 Speaker 1: are wary of jumping into soon and causing a lot 319 00:17:39,640 --> 00:17:42,480 Speaker 1: of disruption and sort of um calling, shooting themselves in 320 00:17:42,520 --> 00:17:44,360 Speaker 1: the foot before they can get out of the starting gate. 321 00:17:44,600 --> 00:17:46,879 Speaker 1: So I think there's certainly going to be discussions, um. 322 00:17:47,240 --> 00:17:49,640 Speaker 1: And that's why you know, when when push comes to shove, 323 00:17:49,720 --> 00:17:52,680 Speaker 1: Congresses is extremely efficient kicking the can down the road, 324 00:17:52,920 --> 00:17:54,960 Speaker 1: and I would look for them to for all the 325 00:17:55,000 --> 00:17:57,760 Speaker 1: talk and bluster that we're hearing today for this to 326 00:17:57,840 --> 00:18:00,399 Speaker 1: not be a smooth process and this to take months 327 00:18:00,440 --> 00:18:02,600 Speaker 1: and maybe even years rather than the weeks not that 328 00:18:02,680 --> 00:18:06,080 Speaker 1: they're talking about now. So if you're an investor in 329 00:18:06,480 --> 00:18:10,720 Speaker 1: either hospital corporations like h c A or indeed health 330 00:18:10,800 --> 00:18:16,840 Speaker 1: insurer such as UH Community, UH Molina for example, or Sentien, 331 00:18:18,040 --> 00:18:20,240 Speaker 1: what investors should be what should they be worried about 332 00:18:20,320 --> 00:18:23,159 Speaker 1: and how fast should they worry? Yeah, I think the 333 00:18:23,359 --> 00:18:25,920 Speaker 1: the insurance that you mentioned, the Senteens, the Molina's, I 334 00:18:25,960 --> 00:18:28,280 Speaker 1: think they're worried about an aspect of the law of 335 00:18:28,280 --> 00:18:30,879 Speaker 1: the Medicaid expansion. Um. You know, that was part of 336 00:18:30,960 --> 00:18:33,240 Speaker 1: the a c A. That is one thing that through 337 00:18:33,280 --> 00:18:36,800 Speaker 1: this budget reconciliation process that Republicans can end pretty quickly, 338 00:18:36,840 --> 00:18:39,200 Speaker 1: and that's been a good source of revenue for those insurers. 339 00:18:39,200 --> 00:18:41,760 Speaker 1: So that's something that could go away. And then anything 340 00:18:41,880 --> 00:18:45,800 Speaker 1: that increases the number of uninsured Americans, well that's the 341 00:18:45,840 --> 00:18:49,280 Speaker 1: problem for the hospitals you outlined, because if you don't 342 00:18:49,320 --> 00:18:51,240 Speaker 1: have insurance, you're not able to pay those bills. That 343 00:18:51,400 --> 00:18:54,200 Speaker 1: increases their bad debt expense can hurt their bottom lines 344 00:18:54,600 --> 00:18:56,520 Speaker 1: as well. So those of the I think you touched 345 00:18:56,560 --> 00:18:59,119 Speaker 1: on the two groups that are most most eager and 346 00:18:59,200 --> 00:19:01,720 Speaker 1: most anxious about what's going to happen now. At the 347 00:19:01,760 --> 00:19:04,080 Speaker 1: same time, a lot of insurers have been leaving the 348 00:19:04,160 --> 00:19:06,879 Speaker 1: existing Obamacare exchanges, so it's not like that's been a 349 00:19:06,960 --> 00:19:10,639 Speaker 1: great business deal for them on those state exchanges. So 350 00:19:10,680 --> 00:19:12,440 Speaker 1: I think they're eager to see some changes to maybe 351 00:19:12,520 --> 00:19:15,280 Speaker 1: draw them back in. And Republicans certainly have an incentive 352 00:19:15,320 --> 00:19:18,240 Speaker 1: to try and UNFOS as stable as possible. Always a pleasure. 353 00:19:18,320 --> 00:19:21,159 Speaker 1: Brian Rye expert when it comes to healthcare policy. He 354 00:19:21,359 --> 00:19:25,720 Speaker 1: is our senior healthcare policy analysts for Bloomberg Intelligence for 355 00:19:25,960 --> 00:19:39,480 Speaker 1: the Government team, which is one of two hundred thousand 356 00:19:39,560 --> 00:19:43,399 Speaker 1: attendees at the Consumer Electronics Show. Sandy Rowland is the 357 00:19:43,480 --> 00:19:47,000 Speaker 1: chief financial officer of Harmon. Harmon International, it's being acquired 358 00:19:47,080 --> 00:19:51,240 Speaker 1: by Samsung. Sandy, thank you for being with us having 359 00:19:51,400 --> 00:19:54,560 Speaker 1: how's the time in Las Vegas? Is everybody already geared 360 00:19:54,760 --> 00:20:00,320 Speaker 1: up for computing and taking selfies inside their own automobiles? Wow? 361 00:20:00,600 --> 00:20:03,800 Speaker 1: I mean the energy out here is just amazing. Um 362 00:20:04,080 --> 00:20:07,840 Speaker 1: Our booth opened about thirty minutes ago, and uh, the 363 00:20:08,000 --> 00:20:10,800 Speaker 1: lines are already forming. We're so excited to be hosting 364 00:20:10,920 --> 00:20:14,240 Speaker 1: customers from all around the globe this week. Tell us 365 00:20:14,320 --> 00:20:17,560 Speaker 1: some of the items that are on view at your 366 00:20:17,680 --> 00:20:20,240 Speaker 1: booth and what that means for the future of the 367 00:20:20,320 --> 00:20:24,359 Speaker 1: connected automobile. Yeah, well, this we're really excited that this 368 00:20:24,520 --> 00:20:28,879 Speaker 1: year we've moved the conversation from connected to intelligent and 369 00:20:29,040 --> 00:20:33,240 Speaker 1: intuitive UM. And this year it's all about innovation that 370 00:20:33,440 --> 00:20:38,160 Speaker 1: delivers an immersive, personalized experience, whether it's for the automobile, 371 00:20:38,480 --> 00:20:41,600 Speaker 1: for the enterprise, or for the home. So what would 372 00:20:41,640 --> 00:20:48,359 Speaker 1: be some of those things, for example, navigation, h embedded infotainment, telematics, 373 00:20:48,960 --> 00:20:52,040 Speaker 1: What would be some of the details, Yeah, absolutely, all 374 00:20:52,080 --> 00:20:54,560 Speaker 1: of the above. UM. What we're excited about in the 375 00:20:54,640 --> 00:21:00,240 Speaker 1: automobile this year, it's all about customization and personalization. So 376 00:21:00,400 --> 00:21:03,320 Speaker 1: once the car is connected, there's so much more that 377 00:21:03,480 --> 00:21:06,159 Speaker 1: you can do with it. So, for example, one of 378 00:21:06,200 --> 00:21:09,600 Speaker 1: the things that we're showcasing this year is how we've 379 00:21:09,640 --> 00:21:13,440 Speaker 1: brought in Microsoft solutions into the car. UM. The driver 380 00:21:13,640 --> 00:21:16,960 Speaker 1: can have access to their calendar, the driver can make 381 00:21:17,480 --> 00:21:21,200 Speaker 1: access conference calls seamlessly, UM. But if they don't want 382 00:21:21,240 --> 00:21:24,879 Speaker 1: to do work, UM, we've brought in entertainment solutions that 383 00:21:25,160 --> 00:21:28,760 Speaker 1: you can convert the car. UM really into an IMAX theater. 384 00:21:29,280 --> 00:21:32,399 Speaker 1: UM you can have individual sound zones where each and 385 00:21:32,600 --> 00:21:36,679 Speaker 1: every driver can have a totally different listening experience. UM. 386 00:21:36,800 --> 00:21:39,680 Speaker 1: All of these are examples of how we're customizing the 387 00:21:39,800 --> 00:21:43,320 Speaker 1: solutions for the car. You've also put together a package 388 00:21:43,640 --> 00:21:49,840 Speaker 1: of lane departure indicators, pedestrian detection, also camera based navigation, 389 00:21:50,000 --> 00:21:54,320 Speaker 1: rear view three sixties surround view solutions. This is UH 390 00:21:54,920 --> 00:21:57,760 Speaker 1: going to take a lot of power, battery power in 391 00:21:57,880 --> 00:22:00,720 Speaker 1: order to keep running. What is the the sort of 392 00:22:00,800 --> 00:22:04,160 Speaker 1: demand from an automobile now in terms of battery used 393 00:22:04,160 --> 00:22:06,960 Speaker 1: to start the car and and maybe like the interior, 394 00:22:07,040 --> 00:22:08,840 Speaker 1: but that's it's a far that's a far cry from 395 00:22:08,880 --> 00:22:11,800 Speaker 1: where we are today. Yeah, for us, it's it's not 396 00:22:11,920 --> 00:22:14,879 Speaker 1: only about the battery, but it's about how many lines 397 00:22:14,920 --> 00:22:17,960 Speaker 1: of code our solutions bring into the car UM, and 398 00:22:18,040 --> 00:22:20,400 Speaker 1: the lines of codes are in the millions, over twenty 399 00:22:20,520 --> 00:22:23,200 Speaker 1: five million lines of code to bring in some of 400 00:22:23,240 --> 00:22:26,600 Speaker 1: these solutions into the into the car. And of course 401 00:22:26,680 --> 00:22:29,520 Speaker 1: one of the things that we're really proud of is 402 00:22:29,600 --> 00:22:33,639 Speaker 1: that we've been focused a lot on cyber security and 403 00:22:33,800 --> 00:22:37,439 Speaker 1: you cannot have a connected car without a robust cyber 404 00:22:37,520 --> 00:22:40,680 Speaker 1: security solution. UM We have a solution that we call 405 00:22:40,840 --> 00:22:44,240 Speaker 1: five plus one UM and it's been tested by the 406 00:22:44,359 --> 00:22:47,960 Speaker 1: University of Michigan and NIZA and it's come out as 407 00:22:48,119 --> 00:22:52,159 Speaker 1: the number one solution for UH cyber security solutions for 408 00:22:52,240 --> 00:22:54,520 Speaker 1: the automobile. Now, I don't know whether you heard, but 409 00:22:54,600 --> 00:22:56,840 Speaker 1: I'm sure you are aware of the efforts on the 410 00:22:56,960 --> 00:23:00,359 Speaker 1: part of Ford, Motor and Toyota to come together in 411 00:23:00,440 --> 00:23:03,920 Speaker 1: a nonprofit consortium in order to make available the open 412 00:23:04,040 --> 00:23:09,359 Speaker 1: source software that would allow third party developers to write 413 00:23:09,440 --> 00:23:13,240 Speaker 1: apps for the automobile. Is that I know that you 414 00:23:13,320 --> 00:23:17,040 Speaker 1: are part of that consortium as well. What what is 415 00:23:17,119 --> 00:23:19,600 Speaker 1: that going to bring to your offering? Yeah, you know. 416 00:23:19,800 --> 00:23:23,280 Speaker 1: I think one thing that's very important is that collaboration 417 00:23:23,640 --> 00:23:28,240 Speaker 1: is essential. As technologies continue to advance, no one company 418 00:23:28,359 --> 00:23:31,879 Speaker 1: has all the goods UH. The smartest partnerships will decide 419 00:23:31,920 --> 00:23:35,560 Speaker 1: who the winners and losers are. So UM, for example, 420 00:23:35,680 --> 00:23:38,960 Speaker 1: we have partnerships with Microsoft to bring in Quartana into 421 00:23:39,040 --> 00:23:42,520 Speaker 1: the car. We have UM partnerships with Apple and Google 422 00:23:42,600 --> 00:23:45,480 Speaker 1: to bring their solutions into the car. UM. No one 423 00:23:45,560 --> 00:23:48,159 Speaker 1: company can can do it along and do it alone. 424 00:23:48,560 --> 00:23:51,399 Speaker 1: And we recognize that, and we see that lots of 425 00:23:51,480 --> 00:23:54,359 Speaker 1: the leading O E M s are also recognizing that 426 00:23:55,080 --> 00:23:57,040 Speaker 1: there's also an effort on the part of harmon I 427 00:23:57,160 --> 00:24:01,760 Speaker 1: understand to enhance vehicle to via goal communications as well 428 00:24:01,840 --> 00:24:08,000 Speaker 1: as vehicle to infrastructure communications. Tell us more about that, Yeah, absolutely, UM. 429 00:24:08,160 --> 00:24:10,520 Speaker 1: One of the key requirements is that you need to 430 00:24:10,600 --> 00:24:12,760 Speaker 1: take advantage of the cloud, and that's one of the 431 00:24:12,840 --> 00:24:15,240 Speaker 1: things that we are doing. It's one of the reasons 432 00:24:15,440 --> 00:24:19,560 Speaker 1: we acquired Symphony Teleca two years ago. You have to 433 00:24:20,200 --> 00:24:23,680 Speaker 1: bring in UM the bridge to the digital ecosystems and 434 00:24:23,840 --> 00:24:28,400 Speaker 1: take advantage of the power of software in the cloud. Yeah. 435 00:24:28,480 --> 00:24:34,399 Speaker 1: You've also built a reputation on audio, specifically UH speakers, 436 00:24:34,560 --> 00:24:39,639 Speaker 1: j b L as well as other high end audio components. 437 00:24:40,640 --> 00:24:42,960 Speaker 1: Is there going to be a change in the way 438 00:24:43,080 --> 00:24:46,400 Speaker 1: that they are integrated into the automobile, because, as you say, 439 00:24:46,520 --> 00:24:52,520 Speaker 1: if you're looking at customizing the experience, having just you know, 440 00:24:52,640 --> 00:24:56,200 Speaker 1: speakers and radio are not necessarily going to be enough anymore. 441 00:24:57,240 --> 00:25:00,920 Speaker 1: You're absolutely right. So, UM, it's not only about having 442 00:25:00,960 --> 00:25:03,880 Speaker 1: a solution that sounds good, UM and looks good. We're 443 00:25:04,280 --> 00:25:06,960 Speaker 1: very proud of our industrial design and the sound solutions 444 00:25:07,040 --> 00:25:09,240 Speaker 1: that we have UM, but they also have to be 445 00:25:09,400 --> 00:25:12,760 Speaker 1: smarter now and that's why we're partner partnering with a 446 00:25:12,880 --> 00:25:16,040 Speaker 1: lot of different companies to bring in the artificial intelligence 447 00:25:16,320 --> 00:25:20,600 Speaker 1: into these solutions. Well, you're also more than partnering being 448 00:25:20,640 --> 00:25:23,639 Speaker 1: acquired by Samsung. What what do you believe will be 449 00:25:24,320 --> 00:25:27,040 Speaker 1: some of the changes that we can see at Harmon 450 00:25:27,359 --> 00:25:32,040 Speaker 1: after the acquisition is completed. Yeah, this transaction we are 451 00:25:32,200 --> 00:25:35,760 Speaker 1: obviously very excited about UM. I think that the companies 452 00:25:35,800 --> 00:25:39,639 Speaker 1: are very complementary. We both have a mindset about around 453 00:25:39,760 --> 00:25:42,520 Speaker 1: speed and innovation UM. So we think it's going to 454 00:25:42,640 --> 00:25:46,360 Speaker 1: be a terrific match and we think that the combination 455 00:25:46,560 --> 00:25:49,919 Speaker 1: of Harmon and Samsung will allow us to take our 456 00:25:50,000 --> 00:25:52,720 Speaker 1: vision around the connected car UM all the way through 457 00:25:52,760 --> 00:25:57,000 Speaker 1: autonomous driving UM at a much more accelerated pace. Sandy, 458 00:25:57,080 --> 00:26:01,760 Speaker 1: do you like heads up displays? Absolutely? Absolutely? Well, because 459 00:26:01,760 --> 00:26:03,359 Speaker 1: I know that I want you to tell us about 460 00:26:04,240 --> 00:26:08,560 Speaker 1: a partnership that you have with a company called navty, 461 00:26:09,200 --> 00:26:13,600 Speaker 1: UH for aftermarket heads up driving. Yeah, that's uh. You know, 462 00:26:13,720 --> 00:26:17,359 Speaker 1: one of our strategies has been to take some small 463 00:26:17,440 --> 00:26:21,960 Speaker 1: investments in small start up companies that have interesting technologies, 464 00:26:22,160 --> 00:26:25,720 Speaker 1: and so our partnership with navty will allow us to 465 00:26:25,800 --> 00:26:29,399 Speaker 1: bring an after market solution to drivers who don't have 466 00:26:29,560 --> 00:26:32,840 Speaker 1: those solutions embedded into their car. UM. Also this year 467 00:26:32,880 --> 00:26:36,879 Speaker 1: at c e S, we're showcasing a car of the 468 00:26:37,000 --> 00:26:43,119 Speaker 1: future which has a total um windscreen head up display 469 00:26:43,200 --> 00:26:46,440 Speaker 1: that covers the end to end wind shield. Wow. And 470 00:26:46,680 --> 00:26:49,200 Speaker 1: what what car is it? Um? This is called the 471 00:26:49,320 --> 00:26:52,159 Speaker 1: Ring Speed car and it's it's every year at c 472 00:26:52,320 --> 00:26:55,520 Speaker 1: e S we've been partnering with rin Speed to showcase 473 00:26:55,800 --> 00:27:00,080 Speaker 1: what we think a car may look like in and 474 00:27:00,240 --> 00:27:04,320 Speaker 1: this particular car with WRIN Speed is one that is 475 00:27:04,359 --> 00:27:09,040 Speaker 1: all about shared mobility and autonomous driving. Well, I think 476 00:27:09,119 --> 00:27:11,080 Speaker 1: you probably have already put your order in for one. 477 00:27:11,240 --> 00:27:14,400 Speaker 1: Thank you very much. Sandy Rowland is the chief financial 478 00:27:14,560 --> 00:27:18,560 Speaker 1: officer of Harmon International, coming to us from the Consumer 479 00:27:18,680 --> 00:27:24,280 Speaker 1: Electronics Show in Las Vegas. The Future of the Digital Automobile. 480 00:27:30,000 --> 00:27:32,879 Speaker 1: Thanks for listening to the Bloomberg pian L podcast. You 481 00:27:32,960 --> 00:27:36,879 Speaker 1: can subscribe and listen to interviews at iTunes, SoundCloud, or 482 00:27:37,119 --> 00:27:41,200 Speaker 1: whatever podcast platform you prefer. I'm pim Fox. I'm out 483 00:27:41,200 --> 00:27:44,040 Speaker 1: there on Twitter at pim Fox. I'm out there on 484 00:27:44,119 --> 00:27:47,359 Speaker 1: Twitter at Lisa Abramo. It's one before the podcast. You 485 00:27:47,400 --> 00:27:50,000 Speaker 1: can always catch us worldwide on Bloomberg Radio.