WEBVTT - More From Day Two at Milken Global Conference

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<v Speaker 1>This is Bloomberg Business Week with Carol Masser and Bloomberg

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<v Speaker 1>Quick Takes Tim Stenovic on Bloomberg Radio. Let's get too

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<v Speaker 1>if you had a great guest, uh, and we're gonna

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<v Speaker 1>get a great perspective and what investors who have lots

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<v Speaker 1>of money to put to work are most interested. Let's

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<v Speaker 1>get right to it with Julian Salisbury, global head of

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<v Speaker 1>Goldman Sacks Asset Management, with us on site at the

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<v Speaker 1>Milk and Global Conference. How are you great? Thank you?

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<v Speaker 1>So the environment people are eager to put money up.

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<v Speaker 1>A lot of things going on. Look, we are in

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<v Speaker 1>a record fundraising environment, a record capital deployment environment, and

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<v Speaker 1>a record environment for monetizations from the same portfolios. So

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<v Speaker 1>it's overwhelming the amount of money that is coming into

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<v Speaker 1>the investment space at large. If you look at alternatives,

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<v Speaker 1>just the top five listed alternative managers raised I believe

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<v Speaker 1>a hundred and fifty three billion last quarter billion of

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<v Speaker 1>dry powder. That's two x the amount of dry powder

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<v Speaker 1>that existed five years ago. That being said, well, that

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<v Speaker 1>may seem overwhelming and concerning to some extent, the magnitude

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<v Speaker 1>the opportunity has also grown substantially. If you look at

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<v Speaker 1>explain that in terms of the options that are out there. So,

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<v Speaker 1>first of all, if you just look at M and

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<v Speaker 1>A activity, we just had a one point six trillion

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<v Speaker 1>dollar quarter of em ANDY, the biggest quart of ever.

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<v Speaker 1>That's five consecutive quarters of north of a trillion. I

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<v Speaker 1>just did a panel with global co heads of City

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<v Speaker 1>in Deutsche and they said we're on track for like

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<v Speaker 1>four point one globally, and they think it could be

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<v Speaker 1>five trillion. I mean, it's it's on it's a And

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<v Speaker 1>if you look at the share of that that's being

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<v Speaker 1>prosecuted by sponsors, I mean last year was a record

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<v Speaker 1>year for the share of em ANDY activity prosecuted through

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<v Speaker 1>the private equity community. This year it's running at thirty

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<v Speaker 1>six percent. So it's a higher percentage of a higher volume,

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<v Speaker 1>and I think a greater opportunity set is a function

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<v Speaker 1>of a number of things. First, well, we had a

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<v Speaker 1>pretty big pause last year, when there's a dearth of

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<v Speaker 1>activity for a really six month plus hiatus of activity.

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<v Speaker 1>And now off the back of that, if you look

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<v Speaker 1>at the accelerating trends that were already taking place in

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<v Speaker 1>the global economy, many of those trends were just ccelerated

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<v Speaker 1>by COVID, and now I think there's in addition to

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<v Speaker 1>the pause and the catch up, there's a greater sense

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<v Speaker 1>of urgency too. Um transform your business, whether it be

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<v Speaker 1>through M and A, through investment through um UH, through

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<v Speaker 1>through digital transformation of the business, and all of these

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<v Speaker 1>things are leading to people wanting to raise capital. But Julian,

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<v Speaker 1>are you finding effective places to deploy all of that capital?

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<v Speaker 1>We you know, we spoke to Scott Minor. We're gonna

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<v Speaker 1>air the interview in just a few minutes. He said,

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<v Speaker 1>this is a period of time where he looks across

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<v Speaker 1>set classes and things are so expensive, with the exception

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<v Speaker 1>of residential real estate. Yeah, I was talking to somebody

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<v Speaker 1>about this earlier today. UM, I can remember back as

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<v Speaker 1>far as twenty years doing business planning. I've been at

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<v Speaker 1>for twenty three years. I don't quite remember the first

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<v Speaker 1>three years. Maybe I wasn't invited to business planning the

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<v Speaker 1>first three years. But each and every year that I

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<v Speaker 1>can remember, we sit every year, including you know, the

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<v Speaker 1>end of oh nine, you know, when things were still

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<v Speaker 1>pretty just like every year you sit there, how are

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<v Speaker 1>you going to make money last year? Because when you

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<v Speaker 1>look back, it always seems it was so obvious with

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<v Speaker 1>hindsight how you made money. It was never that easy.

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<v Speaker 1>It was never that obvious, and I think it's true today.

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<v Speaker 1>I would that being said, it is, you know, valuations

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<v Speaker 1>are particularly high on many metrics, growth in particular relative

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<v Speaker 1>to value is expensive on many metrics, but it's it's

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<v Speaker 1>always more complicated than that. I look at our take

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<v Speaker 1>our Growth Equity Investment Committee. Every week, two or three

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<v Speaker 1>companies comes through that committee that are capable of being

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<v Speaker 1>multi bill in dollar companies that didn't exist to three

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<v Speaker 1>or four years ago, um and something that they won't

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<v Speaker 1>all win, some will not succeed, some will go on

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<v Speaker 1>to be worth tens of billions of dollars. And by

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<v Speaker 1>most valuation metrics, traditional valuation metrics frankly don't really work

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<v Speaker 1>when you're looking at these businesses any kind of near

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<v Speaker 1>term revenue multiple earnings monopole. You really have to look

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<v Speaker 1>at what's this company capable of becoming over the next

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<v Speaker 1>five to ten years and taking a more forward looking view.

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<v Speaker 1>And I think that's another reason why more of this

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<v Speaker 1>is being conducted in the private markets, where people are

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<v Speaker 1>able to take a longer term view focus on things

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<v Speaker 1>like unit economics UM. You know, does it create healthier

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<v Speaker 1>companies that ultimately do go public, whether it's through direct listing,

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<v Speaker 1>whether it's an IPO or spack because they're able to

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<v Speaker 1>kind of incubate for longer periods. Yeah, I think that UM. Look,

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<v Speaker 1>private markets are are a great way for companies to

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<v Speaker 1>scale and grow. The public market route is also a

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<v Speaker 1>very valuable tool for capital raising for companies money when

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<v Speaker 1>companies that including raising money through traditional IPOs or spoke

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<v Speaker 1>there's no UM, there's a root. There's room for all

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<v Speaker 1>of these things. But I would say, UM that the

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<v Speaker 1>patients required to scale some of these businesses, the capital

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<v Speaker 1>that's required to scale some of these businesses, and the allienstances,

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<v Speaker 1>it probably is easier to prosecute that in in private markets.

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<v Speaker 1>And also, look, some of these companies are just this

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<v Speaker 1>are often quite small. Ye. They have a a few

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<v Speaker 1>senior entrepreneurs at the top of the They need real

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<v Speaker 1>kind of help and guidance and governance growing the businesses. Angeliane,

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<v Speaker 1>I'm wondering what the questions that the clients have Goldman

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<v Speaker 1>Success that management are coming to you with right now?

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<v Speaker 1>What did I buy dose coin? Is that what they're

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<v Speaker 1>asking you, Jillian, I'm not I'm not surely going to

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<v Speaker 1>comment on the value of any individual. What do you

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<v Speaker 1>mean there's like, there's some interesting trends out there. Yeah,

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<v Speaker 1>I think that everybody's struggling with this question of where

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<v Speaker 1>the deploy capital. They can't make the returns that they

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<v Speaker 1>need through traditional fixed income product they look at equity markets,

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<v Speaker 1>which have been and will continue to be a great

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<v Speaker 1>source of return of the right time horizon. Um. I

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<v Speaker 1>always think there's a very large room in your portfolio

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<v Speaker 1>for public equities. It's not all about private markets, but

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<v Speaker 1>what they're looking for is ways to pivot into private markets.

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<v Speaker 1>Is an alternative source to the lack of return that's

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<v Speaker 1>really available in fixed income. Just got about twenty five

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<v Speaker 1>seconds leftter, What do you think is the investment people?

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<v Speaker 1>Maybe it is not on everybody's radar, but they should

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<v Speaker 1>be watching closely, just quickly. I know, don't say rowing,

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<v Speaker 1>don't say canoeing, kayaking, claus keep okay, Um, I think

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<v Speaker 1>the the transformation that's going to happen in real estate

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<v Speaker 1>over the next um five years is on the appreciated residential, commercial,

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<v Speaker 1>old forms of those things. Nicely done. Yeah, I gotta

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<v Speaker 1>get you back Julian Salsbury Global ahead of Global of

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<v Speaker 1>Goldman Sachs Asset Management. Right here on Bloomberg. You are

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<v Speaker 1>listening to Bloomberg Business Week Carl Master along with Tim

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<v Speaker 1>Stanovic here at the Milk and Conference. Well, earlier today

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<v Speaker 1>we spoke with Guggenheim Global CEE I O. Scott Minor

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<v Speaker 1>here at the Milk and Institute Global Conference. It was

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<v Speaker 1>a great conversation and in this excerpt Scott discusses market

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<v Speaker 1>headwinds and bubbles. Check it out. I have never seen

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<v Speaker 1>a time like this where there is nothing that I

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<v Speaker 1>can point to that I can call cheap. You know, historically,

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<v Speaker 1>I remember being interviewed on Bloomberg in two thousand and

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<v Speaker 1>six and telling uh, the interviewer that the cheap thing

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<v Speaker 1>was ten year Treasury notes at five and a quarter,

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<v Speaker 1>And I said, want who would want ten year tread

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<v Speaker 1>three notes? Well, you know, I was concerned about the

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<v Speaker 1>housing crisis. Today, I can't point to anything that I

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<v Speaker 1>think that if we got ourselves into trouble that would

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<v Speaker 1>actually be cheap to buy today that has value. So

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<v Speaker 1>you're left in this world, which I'm not real comfortable in,

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<v Speaker 1>where you have to find things that are expensive that

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<v Speaker 1>are probably going to become more expensive, and so you know,

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<v Speaker 1>you know, well, I mean cryptocurrency, right, you know, I

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<v Speaker 1>mean Sheba. If you'd invested in sheba coin back in

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<v Speaker 1>the first quarter of this year, a thousand dollars today

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<v Speaker 1>would be worth two point one million, right, I mean,

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<v Speaker 1>can I find another Sheba coin? I don't know, But okay,

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<v Speaker 1>but we're talking about something that a lot of people

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<v Speaker 1>think it's a joke. Well, sheba coin was a joke

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<v Speaker 1>created to mimic doge coin, which was a joke, right,

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<v Speaker 1>So I mean cancel each other out. Yeah, well, I

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<v Speaker 1>don't know it's it's a second derivative joke cryptocurrency. But

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<v Speaker 1>you know, it just shows you how much cash is

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<v Speaker 1>out there, how it's lifting asset prices. Like I was

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<v Speaker 1>asked that the Federal Reserve to do a thing on

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<v Speaker 1>bubbles and what markets did I think we're in bubbles?

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<v Speaker 1>And I went through every market I could think of,

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<v Speaker 1>and the one I said, Um, sports memorabilia isn't a bubble.

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<v Speaker 1>Baseball cards are clearly in a bubble, right, Um. But

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<v Speaker 1>you know you look at stocks, right, are they in

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<v Speaker 1>a bubble? Well? Not with interest rates where they're at.

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<v Speaker 1>It isn't it and isn't it so much of it's

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<v Speaker 1>got kind of bounced back from falling off a cliff

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<v Speaker 1>and things recovering or do you think you know we've

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<v Speaker 1>done that and then we've gone a little bit more Well,

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<v Speaker 1>I think, you know, normally at this point in a recovery,

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<v Speaker 1>I would say, oh, you know, we're kind of in

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<v Speaker 1>the second or third ending, right like when the Dodgers

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<v Speaker 1>are winning the World Series. But uh that you know,

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<v Speaker 1>this is like we went right to the fifth ending,

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<v Speaker 1>you know, the immediately the incredible rally that we've got

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<v Speaker 1>coming out of the pandemic and the amount of stimulus.

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<v Speaker 1>You know, people compare this to uh, a war, right,

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<v Speaker 1>the pandemic was a war. And so I've gone back

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<v Speaker 1>and I've studied wars and when you get what's there

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<v Speaker 1>is an interesting coroll area is when you you you

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<v Speaker 1>have a major war like the First World War the

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<v Speaker 1>Second World War, right after the war is over and

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<v Speaker 1>there's been all this stimulus from defense spending and money printing,

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<v Speaker 1>you get a spike in inflation, which is transitory. So

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<v Speaker 1>when people talk to me about is this transitory? Which

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<v Speaker 1>I'm always like everything's transitory. Life is transitory. But but

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<v Speaker 1>you know, is you know, is this something that is

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<v Speaker 1>permanent and should we be worried about it in the

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<v Speaker 1>long run? And I think today the answer is no. Well, well,

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<v Speaker 1>if you look at all the things that have gone

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<v Speaker 1>up in price that have that are in the CPI components,

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<v Speaker 1>You've got hospitality industry stuff, hotels, arab lines, automobiles, right,

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<v Speaker 1>which are due to the supply chain interruption. Uh, you

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<v Speaker 1>know it's really a bounce back from what we had

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<v Speaker 1>in the decline. Now you can say, well, wait a

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<v Speaker 1>minute's got autos. Well, the supply chain interruption to me

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<v Speaker 1>looks like the retooling that occurred at the end of

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<v Speaker 1>the Second World War. Right, all of every all output

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<v Speaker 1>auto plants, everything had been converted to wartime production. There

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<v Speaker 1>was a transition period in the in the earl in

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<v Speaker 1>the mid forties, and during that transition period, people who

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<v Speaker 1>had saved all this money from the stimulus from the

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<v Speaker 1>war wanted to spend it, and so auto prices went up.

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<v Speaker 1>But you know it's interesting is there was one one

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<v Speaker 1>period in there, I think it was in forty six

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<v Speaker 1>or forty seven where inflation actually was at but bond

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<v Speaker 1>yields never went above two and a quarter, which doesn't

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<v Speaker 1>quite make sense, does it. Well, I think we're living

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<v Speaker 1>in it today. What a great way to wrap up

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<v Speaker 1>that interview. Google Time Global Chief Investment Officer Scott Minored,

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<v Speaker 1>well known to the Bloomberg audience. He caught up on

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<v Speaker 1>a great panel with our own Scarlet Food here at Milkin,

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<v Speaker 1>and he joined us earlier today to sit down. But

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<v Speaker 1>I love how he looks at history and likens after

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<v Speaker 1>the World World War two to where we are today.

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<v Speaker 1>And I was I have to say sometimes, you know,

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<v Speaker 1>if you were watching on YouTube, you probably saw my

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<v Speaker 1>jaw dropped when he mentioned dojcoin. I couldn't believe that

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<v Speaker 1>word came out of his mouth. But he's someone who

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<v Speaker 1>you know, he looks at all the different nasset classes,

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<v Speaker 1>tries to understand the relationships and you know, why is

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<v Speaker 1>something you know, going up, something going down? What's going on?

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<v Speaker 1>More broadly, I think also he used it as a

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<v Speaker 1>point to illustrate the exuberance that we're seeing in many

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<v Speaker 1>from parts of the market right now. Yeah, I'm not

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<v Speaker 1>going to ask our own Charlie V about dogecoin. He's

0:11:46.880 --> 0:11:48.720
<v Speaker 1>on set with us helping us make sure that this

0:11:48.760 --> 0:11:52.000
<v Speaker 1>broadcast is working. Thumbs up to Doscoin, Charlie, thumbs up,

0:11:52.160 --> 0:11:54.560
<v Speaker 1>comes up. All right, check out that full interview. You

0:11:54.559 --> 0:11:58.560
<v Speaker 1>can find that online and on the Bloomberg. All right, Well,

0:11:58.559 --> 0:12:01.439
<v Speaker 1>she has been a longtime pup look service. We servant,

0:12:01.480 --> 0:12:03.720
<v Speaker 1>excuse me, we've been having a good conversation behind the scene.

0:12:03.920 --> 0:12:07.360
<v Speaker 1>Former Labor and Transportation secretary worked in several administrations, the

0:12:07.360 --> 0:12:10.840
<v Speaker 1>Reagan administration, President George W. Bush, President Trump. We welcome

0:12:10.920 --> 0:12:12.880
<v Speaker 1>the honorable Lange out. So nice to have you here

0:12:12.920 --> 0:12:14.720
<v Speaker 1>with us. Thanks so much. Great to be here. Well,

0:12:14.760 --> 0:12:17.559
<v Speaker 1>it's interesting, you know, labor transportation. I feel like these

0:12:17.559 --> 0:12:20.280
<v Speaker 1>are the two hot topics right now we're looking at.

0:12:20.400 --> 0:12:22.679
<v Speaker 1>Are their changes going on in the labor force? Will

0:12:22.679 --> 0:12:24.959
<v Speaker 1>we never go back to levels in terms of the

0:12:25.000 --> 0:12:28.000
<v Speaker 1>potential workforce that we saw pre pandemic. Let's start there.

0:12:28.240 --> 0:12:30.200
<v Speaker 1>What do you think? What are your observations of it? Well,

0:12:30.240 --> 0:12:32.280
<v Speaker 1>it's great to be here at the Milligan Institute because

0:12:32.280 --> 0:12:34.280
<v Speaker 1>these issues are being discussed, and I just came home

0:12:34.320 --> 0:12:37.880
<v Speaker 1>a panel discussion with five large employers who are talking

0:12:37.880 --> 0:12:41.199
<v Speaker 1>about what will be the work patterns of their employees

0:12:41.280 --> 0:12:43.719
<v Speaker 1>in the future. They're taking polling more, they're asking their

0:12:43.720 --> 0:12:48.120
<v Speaker 1>employees more, and clearly some kind of hybrid working environment

0:12:48.640 --> 0:12:53.439
<v Speaker 1>arrangement will be much more accepting two employees. And I

0:12:53.480 --> 0:12:55.880
<v Speaker 1>think employers are trying to work this out right. And

0:12:55.880 --> 0:12:57.280
<v Speaker 1>you know, at first they we're going to come back

0:12:57.280 --> 0:12:59.120
<v Speaker 1>to work. The workforce is going to come back to

0:12:59.120 --> 0:13:01.640
<v Speaker 1>work Glass of ten. Then it was lost December, then

0:13:01.679 --> 0:13:04.000
<v Speaker 1>it was the spring, then it was gonna be September,

0:13:04.080 --> 0:13:08.320
<v Speaker 1>and now people are talking about spring of So clearly

0:13:08.320 --> 0:13:10.079
<v Speaker 1>we're all feeling our way as to how to come

0:13:10.120 --> 0:13:13.400
<v Speaker 1>back at that. But it's changed. It has changed, at

0:13:13.440 --> 0:13:16.360
<v Speaker 1>least very much. In the short term. It's greater flexibility.

0:13:16.400 --> 0:13:18.880
<v Speaker 1>And this is going to present challenges to the labor

0:13:18.960 --> 0:13:21.640
<v Speaker 1>laws because so much of the labor laws are over

0:13:21.720 --> 0:13:26.280
<v Speaker 1>seventy years old, and they think about a workplace that

0:13:26.480 --> 0:13:30.959
<v Speaker 1>is you know, fixed and that has uh forty hour

0:13:31.080 --> 0:13:33.720
<v Speaker 1>work week people come to work, and so all of

0:13:33.720 --> 0:13:36.040
<v Speaker 1>that is going to change, and that's gonna put tremendous

0:13:36.080 --> 0:13:40.559
<v Speaker 1>impetus on changing the labor laws, which are traditionally very

0:13:40.679 --> 0:13:43.800
<v Speaker 1>very very very difficult to change because you know, they're

0:13:43.800 --> 0:13:46.760
<v Speaker 1>so fought with politics. There is this imbalance happening though

0:13:46.840 --> 0:13:48.640
<v Speaker 1>right now, when we look at the labor market, there

0:13:48.679 --> 0:13:51.440
<v Speaker 1>is an oversupply of workers, and but they are not

0:13:51.480 --> 0:13:54.360
<v Speaker 1>actually returning to the workforce. Do you think we ever

0:13:54.520 --> 0:13:57.360
<v Speaker 1>get back to a workforce that looks like it looked

0:13:57.400 --> 0:14:00.679
<v Speaker 1>before the pandemic? Like, is it realistic? Those Yeah, it's

0:14:00.679 --> 0:14:03.839
<v Speaker 1>even more before the pandemic. When I was Labor secretary,

0:14:03.920 --> 0:14:08.360
<v Speaker 1>the labor participation ray was about sixty with the workforce

0:14:08.400 --> 0:14:11.200
<v Speaker 1>of about a hundred and fifty seven million people. And

0:14:11.240 --> 0:14:13.679
<v Speaker 1>then we have a great recession and then the labor

0:14:13.720 --> 0:14:17.040
<v Speaker 1>participation ray dropped to about sixty three and it kind

0:14:17.040 --> 0:14:20.280
<v Speaker 1>of never recovered. And with the COVID then it went

0:14:20.360 --> 0:14:23.880
<v Speaker 1>from sixty three point you know, three or four down

0:14:23.920 --> 0:14:27.480
<v Speaker 1>to sixty one point seven, sixty one point one. So

0:14:27.640 --> 0:14:31.040
<v Speaker 1>we're continuing to see declines in labor participation, which is

0:14:31.200 --> 0:14:34.280
<v Speaker 1>terrible because we need these workers to come back to

0:14:34.480 --> 0:14:38.200
<v Speaker 1>fuel a full recovery. But there's also another factor, another

0:14:38.280 --> 0:14:42.600
<v Speaker 1>dynamic at play here, and that is the skills gap. Well,

0:14:42.640 --> 0:14:45.400
<v Speaker 1>we've got tired of this for years, a lame just

0:14:45.480 --> 0:14:47.320
<v Speaker 1>like and I'm gonna throw in another problem. We've been

0:14:47.320 --> 0:14:50.480
<v Speaker 1>talking about infrastructure for years, how many administrations, right, and

0:14:50.560 --> 0:14:54.160
<v Speaker 1>this is something that has had bipartisan support. What ultimately,

0:14:54.200 --> 0:14:56.880
<v Speaker 1>from your perspective, do we have to start spending on

0:14:56.960 --> 0:14:59.480
<v Speaker 1>when it comes to infrastructure, Well, look at the supply

0:14:59.560 --> 0:15:04.400
<v Speaker 1>chains for obviously, you know, investing in transportation infrastructure. The

0:15:04.440 --> 0:15:07.360
<v Speaker 1>reason that the Trump administration was never able to succeed

0:15:07.360 --> 0:15:10.800
<v Speaker 1>in the infrastructure proposal was because there was a big

0:15:10.800 --> 0:15:12.920
<v Speaker 1>debate about whether there should be one dollar or for

0:15:13.000 --> 0:15:16.960
<v Speaker 1>one dollar of investment spending. And the Republicans believe that

0:15:17.000 --> 0:15:19.520
<v Speaker 1>there can be leverage, that we can use public private

0:15:19.560 --> 0:15:24.160
<v Speaker 1>partnerships and leverage you know, existing government dollars, and the

0:15:24.200 --> 0:15:27.360
<v Speaker 1>Democrats felt that they wanted one dollar for one dollar

0:15:27.440 --> 0:15:30.560
<v Speaker 1>deficits spending, which obviously the pros and const to both.

0:15:30.960 --> 0:15:34.240
<v Speaker 1>So we were never able to galvanize enough consensus around

0:15:34.280 --> 0:15:38.000
<v Speaker 1>public private partnerships this time around. You know, I think

0:15:38.000 --> 0:15:40.840
<v Speaker 1>there could be there. I think there's an infrastructure bill,

0:15:41.320 --> 0:15:46.240
<v Speaker 1>a transportation infrastructure bill to be had. Unfortunately now it's

0:15:46.240 --> 0:15:50.240
<v Speaker 1>being held hostage to the Budget Reconciliation Bill. If it

0:15:50.280 --> 0:15:53.480
<v Speaker 1>were to be standard alone, there is a deal to

0:15:53.520 --> 0:15:56.360
<v Speaker 1>be made and passed on the infrastructure bill, and I'm

0:15:56.400 --> 0:15:58.360
<v Speaker 1>hopeful that it would be passed before your end I

0:15:58.400 --> 0:16:00.280
<v Speaker 1>feel like politics. I mean, I want to ask you

0:16:00.280 --> 0:16:02.600
<v Speaker 1>because you've been in politics or I'm not a politics.

0:16:02.640 --> 0:16:05.880
<v Speaker 1>I am a public servant. I've always viewed myself as

0:16:05.880 --> 0:16:08.320
<v Speaker 1>being in public servant. Did say you are? We're a

0:16:08.320 --> 0:16:11.880
<v Speaker 1>long time public servant. Um the Republican Party that you know,

0:16:11.880 --> 0:16:14.000
<v Speaker 1>if I think about the January six Capital riot, you

0:16:14.080 --> 0:16:16.920
<v Speaker 1>resigned after that? Yes, I left the Trump administration. You

0:16:16.920 --> 0:16:19.000
<v Speaker 1>were there, you know, almost to the to the to

0:16:19.120 --> 0:16:22.960
<v Speaker 1>the end. Um, do you regret being part of that administration.

0:16:23.960 --> 0:16:27.560
<v Speaker 1>I'm very grateful for the opportunity to serve my country.

0:16:27.680 --> 0:16:29.840
<v Speaker 1>I'm an immigrant to this country. I came when I

0:16:29.920 --> 0:16:33.080
<v Speaker 1>was eight years old. I didn't get my citizenship until nineteen.

0:16:33.720 --> 0:16:35.880
<v Speaker 1>And it used to be that if the president asked,

0:16:36.000 --> 0:16:38.840
<v Speaker 1>the only answer you can give is yes. I didn't

0:16:38.880 --> 0:16:41.400
<v Speaker 1>know the president very well. But I also believe that

0:16:41.400 --> 0:16:44.400
<v Speaker 1>the American people deserve to have a functioning government. But

0:16:44.480 --> 0:16:47.640
<v Speaker 1>going back to the infrastructure bill, the real drama is

0:16:47.680 --> 0:16:50.680
<v Speaker 1>on the Democrats side, because, as I mentioned, there's a

0:16:50.720 --> 0:16:54.080
<v Speaker 1>bill to be had. There was bipartisan support. Republicans signed

0:16:54.080 --> 0:16:58.200
<v Speaker 1>on to this infrastructure bill. But the Speaker, and you know,

0:16:58.480 --> 0:17:01.120
<v Speaker 1>she and I share birthday. By the way. Uh, she's

0:17:01.120 --> 0:17:04.000
<v Speaker 1>in a tough Yes, she's in a tough spot because

0:17:04.000 --> 0:17:07.040
<v Speaker 1>she's got moderates who want to hold back on the spending. Well,

0:17:07.200 --> 0:17:10.320
<v Speaker 1>she's got progressives that want to spend more. So she's

0:17:10.359 --> 0:17:14.359
<v Speaker 1>trying to balance that. But if left alone, that infrastructure

0:17:14.400 --> 0:17:17.679
<v Speaker 1>bill can move on its own. Many all the drama

0:17:17.720 --> 0:17:19.840
<v Speaker 1>is on the Democrats side. And you know this, you know,

0:17:20.240 --> 0:17:22.160
<v Speaker 1>you follow what's been going on. The economy is certainly

0:17:22.200 --> 0:17:24.239
<v Speaker 1>in the pandemic milk and covers this left and right,

0:17:24.240 --> 0:17:27.560
<v Speaker 1>the inequities that we have seen and it's not new,

0:17:28.000 --> 0:17:29.520
<v Speaker 1>and there are people who have not shared in the

0:17:29.560 --> 0:17:33.560
<v Speaker 1>wealth creation, and so that softer infrastructure that the presidents

0:17:33.560 --> 0:17:35.000
<v Speaker 1>team are trying to get through. I mean, this is

0:17:35.040 --> 0:17:37.639
<v Speaker 1>part of the battle. And I think for those people

0:17:37.720 --> 0:17:40.760
<v Speaker 1>that are questioned that they're not saying that these social

0:17:40.840 --> 0:17:45.840
<v Speaker 1>infrastructure proposals are unworthy. What they're saying basically is should

0:17:45.880 --> 0:17:48.480
<v Speaker 1>they be included. You know, what was originally going to

0:17:48.520 --> 0:17:52.280
<v Speaker 1>be called a transportation infrastructure politics works that, you know,

0:17:52.640 --> 0:17:55.080
<v Speaker 1>but they like instructure done. We're done. So it was

0:17:55.119 --> 0:17:58.800
<v Speaker 1>originally the original infrastructure bill had only six percent of

0:17:58.880 --> 0:18:02.680
<v Speaker 1>what is traditionally defined as transportation infrastructure. If you expand

0:18:02.720 --> 0:18:05.720
<v Speaker 1>the explanation and the description a bit more generously, you

0:18:05.760 --> 0:18:08.800
<v Speaker 1>get up to thirty of the dollars. But clearly there's

0:18:08.840 --> 0:18:13.480
<v Speaker 1>a need for transportation infrastructure, Rhodes bridges, transports, airports, drive

0:18:13.560 --> 0:18:16.800
<v Speaker 1>around New York. Absolutely. I mean the governor got elected

0:18:16.840 --> 0:18:19.200
<v Speaker 1>on this. We've got her slogan. We have to ask

0:18:19.240 --> 0:18:20.960
<v Speaker 1>because we have about a minute. I know you consider

0:18:21.000 --> 0:18:23.679
<v Speaker 1>yourself a public servant, but we got to ask more politics.

0:18:24.640 --> 0:18:28.399
<v Speaker 1>Oh shoot, why are you talking? I heard from Donald

0:18:28.440 --> 0:18:31.760
<v Speaker 1>Trump at all. Uh, we have not spoken, not at all.

0:18:32.359 --> 0:18:34.040
<v Speaker 1>So but I'm not you know, like I'm out of

0:18:34.040 --> 0:18:38.080
<v Speaker 1>politics the public policy. You served in three administrations. Do

0:18:38.080 --> 0:18:40.119
<v Speaker 1>you consider President Trump is the leader right now of

0:18:40.160 --> 0:18:42.480
<v Speaker 1>the Republican Party? Well, I think that is in the

0:18:42.520 --> 0:18:45.320
<v Speaker 1>process of being decided and sorted out. There's still some

0:18:45.359 --> 0:18:49.280
<v Speaker 1>time to go. There's two coming up, and then there's

0:18:49.320 --> 0:18:51.920
<v Speaker 1>should he be the leader of the Republican Party. That's

0:18:51.960 --> 0:18:54.000
<v Speaker 1>up to the people. You know. I think for those

0:18:54.040 --> 0:18:56.679
<v Speaker 1>who wonder about his appeal, they should be asking what

0:18:56.960 --> 0:18:59.920
<v Speaker 1>is it that prompts so many Americans to support him?

0:19:00.000 --> 0:19:02.160
<v Speaker 1>And I think that's a very the answer will be very,

0:19:02.280 --> 0:19:04.560
<v Speaker 1>very revealing and you, and it's a teaching you know,

0:19:04.880 --> 0:19:07.520
<v Speaker 1>It's it's something that I think, um, you know, the

0:19:07.600 --> 0:19:10.520
<v Speaker 1>leadership should understand. But as someone who's who came to

0:19:10.600 --> 0:19:13.880
<v Speaker 1>this country as an immigrant, um and became a citizen,

0:19:14.320 --> 0:19:17.040
<v Speaker 1>do you think a voting citizen that he should be

0:19:17.040 --> 0:19:20.720
<v Speaker 1>president or should leader of the Republic. I will support

0:19:20.760 --> 0:19:23.840
<v Speaker 1>the nominee. I'm a Republican, so I will support whoever

0:19:23.880 --> 0:19:26.320
<v Speaker 1>the nominee is. Okay, Oh my gosh, I wish we

0:19:26.320 --> 0:19:28.640
<v Speaker 1>had more time. You have such great energy. Thank you,

0:19:28.800 --> 0:19:30.320
<v Speaker 1>Thank you for having me and come at things from

0:19:30.320 --> 0:19:32.879
<v Speaker 1>so many different perspectives. Elane to how of course former

0:19:32.920 --> 0:19:36.160
<v Speaker 1>Secretary of Transportation, former Secretary of Labor. I remember talking

0:19:36.160 --> 0:19:38.520
<v Speaker 1>to you years ago in the monthly jobs reports came out,

0:19:38.960 --> 0:19:41.479
<v Speaker 1>Um say some great history. We've had another great day

0:19:41.520 --> 0:19:43.680
<v Speaker 1>at Milkin and it's only too I know. We have

0:19:43.720 --> 0:19:45.440
<v Speaker 1>one more day and I'm gonna talk to Kathy Wood

0:19:45.520 --> 0:19:47.359
<v Speaker 1>in a few minutes. Are you go get ready for that?

0:19:47.520 --> 0:19:48.280
<v Speaker 1>This is Bloomberg