1 00:00:02,400 --> 00:00:06,280 Speaker 1: Global business news twenty four hours a day, Bloomberg dot Com, 2 00:00:06,480 --> 00:00:09,360 Speaker 1: the Radio plus Mobile Lab and on your radio. This 3 00:00:09,720 --> 00:00:12,959 Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. This 4 00:00:13,119 --> 00:00:15,280 Speaker 1: update is brought to you by Brown University, where the 5 00:00:15,280 --> 00:00:18,439 Speaker 1: new Executive Master and Cyber Security prepares leaders in law, 6 00:00:18,480 --> 00:00:22,440 Speaker 1: technology and business to face tomorrow's greatest threats. The Brown 7 00:00:22,520 --> 00:00:27,280 Speaker 1: University Executive Master in cyber Security Strategy is the best security. 8 00:00:27,640 --> 00:00:31,280 Speaker 1: Apollo Global Management agreeing to buy grocery Train fresh Market 9 00:00:31,360 --> 00:00:33,840 Speaker 1: for twenty eight dollars fifty cents is share in cash, 10 00:00:33,960 --> 00:00:37,040 Speaker 1: or almost one point four billion dollars, and fresh Market 11 00:00:37,040 --> 00:00:40,240 Speaker 1: shares are up tent this morning, Starward Hotels and Resources 12 00:00:40,280 --> 00:00:43,559 Speaker 1: Worldwide saying it received an unsolicited takeover proposal from a 13 00:00:43,560 --> 00:00:46,760 Speaker 1: group of companies. It's up more than seven percent. US 14 00:00:46,840 --> 00:00:49,840 Speaker 1: Dock Index futures lower with SNP EVENY futures down three 15 00:00:49,840 --> 00:00:52,400 Speaker 1: and a half points DOWNY miny futures down thirteen, NASA 16 00:00:52,400 --> 00:00:55,279 Speaker 1: DOCI mini futures down four. Docks in Germany's up one 17 00:00:55,320 --> 00:00:58,280 Speaker 1: point six percent, ten Your Treasury up to thirty seconds, 18 00:00:58,280 --> 00:01:00,960 Speaker 1: the yel at one point nine seven percent, NIMEX hered 19 00:01:01,000 --> 00:01:02,880 Speaker 1: Oil down two point one per cent or eighty one 20 00:01:02,920 --> 00:01:05,479 Speaker 1: cents to thirty seven sixty nine. A barrel called max 21 00:01:05,480 --> 00:01:07,679 Speaker 1: schal down to ten per cent or two dollars forty 22 00:01:07,720 --> 00:01:10,520 Speaker 1: cents at twelve fifty seven announced the euro at dollar 23 00:01:10,560 --> 00:01:13,960 Speaker 1: eleven ten again one thirteen point seven zero. That's a 24 00:01:13,959 --> 00:01:17,080 Speaker 1: Bloomberg business flash, Tom and Mike Karen, thanks so much, 25 00:01:17,120 --> 00:01:20,400 Speaker 1: Michael McKee as a host of questions for our guest, 26 00:01:20,560 --> 00:01:24,160 Speaker 1: Richard Hass of the Council on Foreign Relations, quickly, um, 27 00:01:24,880 --> 00:01:27,160 Speaker 1: a guy with I think a right wing persuasion out 28 00:01:27,160 --> 00:01:32,120 Speaker 1: on Twitter, Republican persuasion. Just ask a brilliant question, why 29 00:01:32,160 --> 00:01:35,400 Speaker 1: do Europeans or anybody else for that matter, give us 30 00:01:35,440 --> 00:01:38,440 Speaker 1: the criticism we do when the U s. Taxpayer is 31 00:01:38,480 --> 00:01:43,280 Speaker 1: providing for international defense. This free ride off of the 32 00:01:43,360 --> 00:01:46,880 Speaker 1: United States with our military. Mike, give us an update 33 00:01:47,240 --> 00:01:50,640 Speaker 1: on where that stands. Is that a correct observation? Well, 34 00:01:51,480 --> 00:01:53,480 Speaker 1: the only way to defend it is the United States 35 00:01:53,480 --> 00:01:56,040 Speaker 1: has paid the lion's share of what say what NATO 36 00:01:56,080 --> 00:01:58,440 Speaker 1: has spent not as a favorite to the Europeans but 37 00:01:58,480 --> 00:02:00,800 Speaker 1: as a favorite to ourselves. One of the lessons we 38 00:02:00,920 --> 00:02:03,160 Speaker 1: learned from World War Two is the balance of power 39 00:02:03,160 --> 00:02:06,560 Speaker 1: in Europe and other places beyond the United States. Is 40 00:02:06,640 --> 00:02:09,400 Speaker 1: in the u S national interests and in some places 41 00:02:09,440 --> 00:02:12,760 Speaker 1: the Europeans just don't have certain capacity. Should they do more, yes, 42 00:02:13,760 --> 00:02:15,880 Speaker 1: even more than how much they spend. They should integrate 43 00:02:15,880 --> 00:02:18,680 Speaker 1: and more, they should specialize because there's no there's no 44 00:02:18,760 --> 00:02:21,920 Speaker 1: system in Europe so that this country, say, focuses our 45 00:02:21,960 --> 00:02:24,560 Speaker 1: air forces as opposed to land are supposed to enable 46 00:02:24,720 --> 00:02:26,440 Speaker 1: so that the whole is less than the sum of 47 00:02:26,480 --> 00:02:29,720 Speaker 1: its parts. But again, it's not just giveaways, uh from 48 00:02:29,720 --> 00:02:32,320 Speaker 1: the United States. It's it's something that we do because 49 00:02:32,360 --> 00:02:34,959 Speaker 1: it makes you know, we have benefited tremendously from the 50 00:02:35,000 --> 00:02:39,240 Speaker 1: stability in Europe, and we benefit out of all this 51 00:02:39,320 --> 00:02:41,800 Speaker 1: from being the world's reserve currency, and in ways people 52 00:02:41,840 --> 00:02:44,680 Speaker 1: I don't think I understand at all. Absolutely, Look, there's 53 00:02:44,720 --> 00:02:46,560 Speaker 1: there's a lot of benefits that comes from the United 54 00:02:46,560 --> 00:02:49,880 Speaker 1: States being what I would describe as first among unequals 55 00:02:49,919 --> 00:02:52,240 Speaker 1: in the world. And we have to think twice and 56 00:02:52,240 --> 00:02:55,680 Speaker 1: then three times if we're thinking about moving away from 57 00:02:55,720 --> 00:02:58,000 Speaker 1: that from that position, I think the Middle East is 58 00:02:58,040 --> 00:03:01,400 Speaker 1: a frightening glimpse of what what could happen the worst 59 00:03:01,400 --> 00:03:04,600 Speaker 1: case possible when the United States essentially says we're going 60 00:03:04,639 --> 00:03:07,960 Speaker 1: to back away from a set of involvements. I'm not 61 00:03:08,000 --> 00:03:10,480 Speaker 1: suggesting that would necessarily be replicating in other parts of 62 00:03:10,480 --> 00:03:13,079 Speaker 1: the world, but imagine what Asia would look like if 63 00:03:13,120 --> 00:03:16,200 Speaker 1: the US Japanese or US South Korean relationships were not 64 00:03:16,240 --> 00:03:19,000 Speaker 1: seen as robust. You would suddenly have a reason, I believe, 65 00:03:19,040 --> 00:03:22,520 Speaker 1: of more conflict, more proliferation, and worse. So, the United 66 00:03:22,560 --> 00:03:24,480 Speaker 1: States needs to stay involved in these parts of the 67 00:03:24,480 --> 00:03:27,920 Speaker 1: world's which are simply not self regulating. You've written a 68 00:03:27,919 --> 00:03:32,120 Speaker 1: piece called the Inbox of the next Commander in Chief. Unfortunately, 69 00:03:32,160 --> 00:03:33,600 Speaker 1: we don't have two hours to sit and talk with 70 00:03:36,040 --> 00:03:38,640 Speaker 1: what's at the top of the what's the scariest thing 71 00:03:38,720 --> 00:03:42,480 Speaker 1: out there? That? Whoever the scarious thing? For Richards three hours? 72 00:03:44,280 --> 00:03:49,360 Speaker 1: What's the second scari uh, just a couple of things 73 00:03:49,760 --> 00:03:51,480 Speaker 1: out there. One is going to be how do we 74 00:03:51,520 --> 00:03:55,840 Speaker 1: persuade Iron's neighbors uh not to develop nuclear options or 75 00:03:55,840 --> 00:03:58,280 Speaker 1: hedges of their own against the uncertainty of where Iron 76 00:03:58,400 --> 00:04:00,680 Speaker 1: might be down the road. What do we do about 77 00:04:00,680 --> 00:04:04,280 Speaker 1: North Korea's nuclear program? North Korea, possibly during the time 78 00:04:04,280 --> 00:04:07,600 Speaker 1: of the next presidency, will be able to miniaturize nuclear 79 00:04:07,720 --> 00:04:10,040 Speaker 1: weapons and put them on with web missiles that can 80 00:04:10,080 --> 00:04:12,720 Speaker 1: reach the United States. Are we prepared to tolerate that? 81 00:04:13,080 --> 00:04:15,480 Speaker 1: If so, how do we? Uh? How do we? How 82 00:04:15,480 --> 00:04:17,240 Speaker 1: do we deal with that? And then you've got any 83 00:04:17,400 --> 00:04:21,760 Speaker 1: number of traditional issues dealing with with China, UH, with 84 00:04:21,760 --> 00:04:24,600 Speaker 1: with with Russia. UH. I could go on and on 85 00:04:24,640 --> 00:04:26,279 Speaker 1: and just look at some other issues we have been 86 00:04:26,320 --> 00:04:29,240 Speaker 1: talked about. How to how to govern cyberspace, how to 87 00:04:29,320 --> 00:04:32,799 Speaker 1: how to deal with the threat of an international pandemic. UH. 88 00:04:32,839 --> 00:04:35,240 Speaker 1: You know, it's a it's a long long list of 89 00:04:35,279 --> 00:04:38,440 Speaker 1: regional and global issues out there. You've been at this 90 00:04:38,480 --> 00:04:43,680 Speaker 1: a long time. Are you more concerned about what's going 91 00:04:43,760 --> 00:04:46,599 Speaker 1: on in the world than you have been in many years? 92 00:04:47,200 --> 00:04:49,359 Speaker 1: I hate to be pessimistic, and my kids call me 93 00:04:49,400 --> 00:04:52,800 Speaker 1: Debbie Downer, but the short answer is yes. Uh. There's 94 00:04:52,839 --> 00:04:55,200 Speaker 1: I'm worried about two things in the combination. I'm worried 95 00:04:55,240 --> 00:04:57,360 Speaker 1: about a world that's unraveling in a lot of places, 96 00:04:57,400 --> 00:05:00,799 Speaker 1: where and where capacity is spreading. More and more places 97 00:05:00,839 --> 00:05:02,599 Speaker 1: have the means to do things. They're making more and 98 00:05:02,600 --> 00:05:05,200 Speaker 1: more decisions on their own, deferring to us a lot less. 99 00:05:05,440 --> 00:05:07,960 Speaker 1: And I worry that we, to some extent have opted 100 00:05:07,960 --> 00:05:09,960 Speaker 1: out in many cases and we simply don't have the 101 00:05:10,000 --> 00:05:12,840 Speaker 1: consensus or we don't have the will. So this combination 102 00:05:13,000 --> 00:05:15,800 Speaker 1: of an America that's that's divided and distracted and a 103 00:05:15,839 --> 00:05:20,640 Speaker 1: world that's unraveling is a toxic combination. You are carefully bipartisan, 104 00:05:21,120 --> 00:05:24,560 Speaker 1: or I should say nonpartisan. It's cfr. You have a 105 00:05:24,680 --> 00:05:28,320 Speaker 1: history with Republican politics. What would you like to hear 106 00:05:28,400 --> 00:05:31,599 Speaker 1: at a Republican convention, not just the main speech of 107 00:05:31,640 --> 00:05:35,320 Speaker 1: whoever it is, but the set of speeches at a 108 00:05:35,400 --> 00:05:38,960 Speaker 1: GOP convention. The last Republican president who I thought got 109 00:05:38,960 --> 00:05:41,919 Speaker 1: it right on foreign policy was George Herbert Walker Bush 110 00:05:42,400 --> 00:05:44,560 Speaker 1: for a few years ago. Yes it's twenty, it's it's 111 00:05:45,240 --> 00:05:47,440 Speaker 1: five years ago. And it had a sense of American 112 00:05:47,520 --> 00:05:50,440 Speaker 1: leadership in the world. But it wasn't unilateralism. It was 113 00:05:50,480 --> 00:05:52,480 Speaker 1: working with others. We were trying to do things in 114 00:05:52,520 --> 00:05:55,200 Speaker 1: the world, but we weren't trying to remake the societies 115 00:05:55,240 --> 00:05:57,120 Speaker 1: of other countries. For the most part, had a sense 116 00:05:57,160 --> 00:06:00,880 Speaker 1: of limits. It understood the need for a wrong society 117 00:06:00,920 --> 00:06:03,360 Speaker 1: and economy at homes if you will, to balance guns 118 00:06:03,360 --> 00:06:05,520 Speaker 1: and butter. I want to see that sort of thing again. 119 00:06:06,000 --> 00:06:10,520 Speaker 1: If President Bush agreed to come back or somebody like him. 120 00:06:10,520 --> 00:06:13,320 Speaker 1: We're to take office again, though, could we recreate that 121 00:06:13,400 --> 00:06:15,640 Speaker 1: in the sense that, as you say, the world is 122 00:06:15,640 --> 00:06:17,960 Speaker 1: making its own decisions now? Is it too late for 123 00:06:18,520 --> 00:06:20,640 Speaker 1: it's much more difficult to understandswer is it's much more 124 00:06:20,640 --> 00:06:24,279 Speaker 1: difficult because capacity in many forms has spread around the world, 125 00:06:24,279 --> 00:06:27,880 Speaker 1: whether it's military capacity or technology. And I also think 126 00:06:27,880 --> 00:06:30,560 Speaker 1: there's been a loss of confidence in American reliability. I 127 00:06:30,640 --> 00:06:33,680 Speaker 1: disagree with President Obama has recent interview in Atlantic magazine. 128 00:06:33,680 --> 00:06:36,080 Speaker 1: I think we've paid an enormous price for what he 129 00:06:36,080 --> 00:06:38,520 Speaker 1: said he would do and then didn't do in in Syria, 130 00:06:38,760 --> 00:06:43,160 Speaker 1: raising fundamental questions about the strength of American commitments. I 131 00:06:43,200 --> 00:06:45,600 Speaker 1: also think we've paid a price for the dysfunction at home, 132 00:06:45,839 --> 00:06:49,240 Speaker 1: all these years of sequester or a threatened government shutdowns, 133 00:06:49,279 --> 00:06:50,880 Speaker 1: of not being able to say, to pass the t 134 00:06:51,040 --> 00:06:54,240 Speaker 1: PP or other legislation that we've negotiated. So the rest 135 00:06:54,240 --> 00:06:56,159 Speaker 1: of the world has come to see the United States 136 00:06:56,200 --> 00:06:59,479 Speaker 1: quite correctly, as a less predictable place. It's very hard 137 00:06:59,520 --> 00:07:02,120 Speaker 1: to be a great power who was not reliable and predictable. 138 00:07:02,240 --> 00:07:05,480 Speaker 1: We'll get a message into President Bush to see if 139 00:07:05,520 --> 00:07:08,679 Speaker 1: he can serve another four years. He will celebrate Michael 140 00:07:08,800 --> 00:07:14,080 Speaker 1: June twelve, nineties and happy birthday to him. I covered 141 00:07:14,120 --> 00:07:17,920 Speaker 1: his presidency. He was one of the nicest people you 142 00:07:17,960 --> 00:07:19,920 Speaker 1: ever met. Richard has thank you so much. With the 143 00:07:19,960 --> 00:07:23,320 Speaker 1: Council on Foreign Relations. Can't say enough about their campaign 144 00:07:23,640 --> 00:07:29,600 Speaker 1: two thousand sixteen Actual intelligence and discourse on the nation's issues. 145 00:07:29,640 --> 00:07:33,000 Speaker 1: What a shock that is. Campaign two thousand sixteen out 146 00:07:33,040 --> 00:07:35,920 Speaker 1: at CFR, Michael McKee and Tom Keene to get your 147 00:07:35,960 --> 00:07:40,080 Speaker 1: Monday ready on economics, finance, investment, and international relations. This 148 00:07:40,240 --> 00:07:47,320 Speaker 1: is Bloomberg surveillance. Bloomberg Surveillance is brought you by land 149 00:07:47,360 --> 00:07:49,400 Speaker 1: Rover Adventures. Yours for the taking is a land Rover 150 00:07:49,440 --> 00:07:51,760 Speaker 1: try state dot Com for special LEAs and financing offers. 151 00:07:51,800 --> 00:07:53,480 Speaker 1: Land Rover above and Bien