WEBVTT - Trump Sends Mixed Signals on Iran War

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News. Welcome to the Bloomberg

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<v Speaker 2>On Friday, we had this pronouncement from the President on

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<v Speaker 2>social media saying he was going in and would be

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<v Speaker 2>making this decision. He went into the meeting, came out

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<v Speaker 2>of the meeting, and there still was not an agreement.

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<v Speaker 2>So Axios is reporting today that the President during that

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<v Speaker 2>meeting asked for several amendments to the deal negotiated between

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<v Speaker 2>his envoy and the Iranians.

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<v Speaker 3>In particular, he wants to strengthen the sections around around's

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<v Speaker 3>nuclear material, including details on how the US gets that

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<v Speaker 3>material and when. Here's what he told his daughter in

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<v Speaker 3>law Laura Trump on Fox News last night. This is

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<v Speaker 3>really a win.

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<v Speaker 5>Already, we've defeated the military, essentially defeated their military. I

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<v Speaker 5>would rather get a deal because we can open the

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<v Speaker 5>strait immediately upon signing. The one guarantee that I have

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<v Speaker 5>to have is that there will be no nuclear weapons.

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<v Speaker 5>They've agreed to that, and it was very interesting. They

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<v Speaker 5>originally said we will not develop a nuclear weapon. I said, well,

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<v Speaker 5>what happens if you buy a nuclear weapon? So now

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<v Speaker 5>it says we will not develop or in any way

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<v Speaker 5>purchase a military weapon. That's a big difference. So we're

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<v Speaker 5>getting what we want slowly, very tough negotiators. It takes

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<v Speaker 5>a long time.

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<v Speaker 2>I'm in no hurry.

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<v Speaker 5>I'd like to say I'm in a hurry because you

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<v Speaker 5>know what, ghasoline prices are going to come dumbly down.

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<v Speaker 5>But if you're going to be in a hurry, you're

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<v Speaker 5>not going to make a good deal.

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<v Speaker 3>We're getting what we want. According to the President of

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<v Speaker 3>the United States, is now as ambassor John Bolton. He

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<v Speaker 3>served as the former US Ambassador of the UN and

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<v Speaker 3>also as National Security advisor to President Trump during the

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<v Speaker 3>first term. Mister ambassador, great to have you with us

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<v Speaker 3>once again. Let me start with that line that I

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<v Speaker 3>repeated there coming out of that quotation from the President.

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<v Speaker 3>We are getting what we want at this juncture as

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<v Speaker 3>we live through this weekend after weekend, the President indicating

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<v Speaker 3>he's close to a deal, and then silence or no

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<v Speaker 3>codified deal at the end of a weekend. Do you

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<v Speaker 3>feel like the US is getting what it wants out

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<v Speaker 3>of these negotiations they're taking place between the US and

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<v Speaker 3>Iran via the pakistanis.

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<v Speaker 6>Well, I think Trump is getting what he wants. This

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<v Speaker 6>is a deal about gasoline prices at the pump in

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<v Speaker 6>the United States. Trump worries obviously about the price levels

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<v Speaker 6>people are paying. He's worried about the effect on inflation.

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<v Speaker 6>He's worried about the effect on the elections in November.

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<v Speaker 6>But this is not a deal that really ends the

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<v Speaker 6>war in a satisfactory way for the United States. There's

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<v Speaker 6>no doubt about it. If the Iranian regime is allowed

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<v Speaker 6>to survive, which it looks like Trump is prepared to acknowledge,

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<v Speaker 6>they will simply benefit from the reopening of the strait

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<v Speaker 6>to sell more oil, gain more revenue, and entrench themselves

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<v Speaker 6>in power, giving them time rebuild their nuclear program, rebuild

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<v Speaker 6>their military, rebuild their terrorist proxies an x period of

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<v Speaker 6>time will be right back where we started from.

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<v Speaker 2>Given that, do you think the US was in a

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<v Speaker 2>safer bet with Iran in the JCPOA than they will

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<v Speaker 2>be after this is worked out?

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<v Speaker 7>Not at all.

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<v Speaker 6>The twenty fifteen obomba in nuclear deal was a failure

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<v Speaker 6>on many levels. It didn't at all deal with Iran's

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<v Speaker 6>plutonium route to nuclear weapons in the form of the

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<v Speaker 6>spent fuel at the nuclear reactor at Bouscher, just completely

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<v Speaker 6>left that unattended, and the estimates of the amount of

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<v Speaker 6>spent fuel there that Iran has by nuclear proliferation experts

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<v Speaker 6>say they could make between two hundred and four hundred

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<v Speaker 6>nuclear weapons just from the plutonium route to bombs, not

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<v Speaker 6>the Range and Richmond route. It's a complicated issue, but

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<v Speaker 6>the fact is that the JCPOA was allsory and Iran's

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<v Speaker 6>strategic determination to get nuclear weapons has never changed.

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<v Speaker 2>But all those technical issues that you just points it out,

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<v Speaker 2>are you confident that given this negotiating team we were

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<v Speaker 2>just talking with our Jeff Mason, our White House correspondent,

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<v Speaker 2>was saying, the negotiating team is essentially Jared Kushner and

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<v Speaker 2>Steve Whitcoff they don't have a lot of technical experts.

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<v Speaker 2>Do you have any level of confidence that any of

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<v Speaker 2>those issues with the previous deal are going to be

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<v Speaker 2>fixed this time around, given how they are doing this diplomacy.

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<v Speaker 6>Well, none, whatever. Look, the Iranians are clearly trying to

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<v Speaker 6>buy time. I mean, they like to sell oil, but

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<v Speaker 6>this is a contest really of perseverance and determination. They

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<v Speaker 6>think Trump is closer to buckling than they are. They

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<v Speaker 6>don't care about the welfare of their people, they care

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<v Speaker 6>about preserving the regime. And so we're going through this

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<v Speaker 6>ropidope of these talks about talks. The Economists this week

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<v Speaker 6>has a great cartoon. It's a bunch of iatolas speaking

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<v Speaker 6>to two of the Pakistani mediators, and one Pakistani mediator

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<v Speaker 6>says to the other one tell the Americans they are

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<v Speaker 6>offering a framework for negotiation of the establishment of a proposal,

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<v Speaker 6>exploring preliminary talks about the tentative prospect of conversations, and

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<v Speaker 6>the other mediator says, a great plan of action. That's

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<v Speaker 6>what we're going through.

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<v Speaker 7>Now.

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<v Speaker 3>We're going to have you read New Yorker cartoons the

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<v Speaker 3>next time you're on the show. I think that Ambassadbulm

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<v Speaker 3>what is your prescription for what needs to happen next

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<v Speaker 3>we hear the President continue to threaten that something will

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<v Speaker 3>happen if they can come to an agreement. Of course,

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<v Speaker 3>what's on the table, as we understand it is more

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<v Speaker 3>kinetic action, more military action. Are you of the camp

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<v Speaker 3>as one might expect that that's something the US should

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<v Speaker 3>be pursuing right now. Indeed, what do you see as

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<v Speaker 3>the path forward here? If all that we get out

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<v Speaker 3>of this is a one page document with fourteen points

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<v Speaker 3>on it, or an agreement that isn't satisfactory.

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<v Speaker 6>Well, I think there are two broad options. One is

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<v Speaker 6>just to junk the cease fire, which I think has

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<v Speaker 6>been a gift from God to the Iranian regime and

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<v Speaker 6>go back to full scale military activity. If Trump's not

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<v Speaker 6>willing to do that, I think the minimal that he

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<v Speaker 6>should do and that we can do is open the

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<v Speaker 6>Gulf Arab side of the Strait of Hormuz to get

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<v Speaker 6>their oil and gas out into international markets. Keep the

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<v Speaker 6>blockade we've got in effect against Iranian exports, but using

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<v Speaker 6>military force I think that will be necessary help ensure

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<v Speaker 6>that exports from the Arab oil producing countries can get out.

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<v Speaker 6>We know from reporting in various publications. I won't name that.

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<v Speaker 6>This week, the US has been helping carriers get out.

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<v Speaker 6>They've not been attacked. They're turning their transponders off, going

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<v Speaker 6>at night, kind of sneaking through. That's not a lot

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<v Speaker 6>of traffic, to be sure, but I think it shows

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<v Speaker 6>that the Iranian threat here may be more hollow than

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<v Speaker 6>people think. And to alleviate the pressure on the international economy,

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<v Speaker 6>I think it's worth using force to open the strait.

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<v Speaker 6>I think it helps re establish the terns to prevent

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<v Speaker 6>ron from trying to turn the Straight on and off

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<v Speaker 6>like a light switch in the future.

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<v Speaker 2>So that's interesting. So one of the criticisms of how

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<v Speaker 2>this is going is that there's a sequencing issue. People

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<v Speaker 2>are saying that the US shouldn't give up its hold

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<v Speaker 2>on the Straight, they should keep the Straight kind of

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<v Speaker 2>locked down, and so they can use that on the

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<v Speaker 2>nuclear leverage side. You don't see the sequencing issue as

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<v Speaker 2>a problem here with the way this is being negotiated.

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<v Speaker 2>Youusally they should open the strait and then tackle the

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<v Speaker 2>nuclear issue.

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<v Speaker 6>Well, I think we should keep the blockade against Iran

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<v Speaker 6>and exports. So no, I don't I will understand apologies definitely, yeah, no,

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<v Speaker 6>But I will say whenever diplomats start talking about sequencing

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<v Speaker 6>as being the only problem, hold on to your wallet,

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<v Speaker 6>because it means there's really a bigger problem they're trying

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<v Speaker 6>to obscure.

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<v Speaker 3>I want to ask you about what's happened here is

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<v Speaker 3>a weapon for Iran in the future. We've talked about

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<v Speaker 3>this over the course of the morning as well. We're

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<v Speaker 3>talking about the prospects of extending this kind of squishy

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<v Speaker 3>ceasefire that's been in place now for a few weeks

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<v Speaker 3>to sixty days. It occurs to me that it's not

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<v Speaker 3>going to prevent Ron from doing this again in the future. Indeed,

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<v Speaker 3>as we look back on this conflict, I think what's

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<v Speaker 3>perhaps most valuable to Iran is putting this in practice

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<v Speaker 3>and seeing the habit that they can reak by closing

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<v Speaker 3>this straight to ships from all over the world, the

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<v Speaker 3>impact that that's had on the global economy. Do you

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<v Speaker 3>have any confidence here that them having done that this

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<v Speaker 3>will be a one and done thing, that Iron won't

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<v Speaker 3>return to this or try to do this again in

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<v Speaker 3>the future. And indeed, how does the US put in

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<v Speaker 3>place any sort of procedure that would keep that from

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<v Speaker 3>happening again.

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<v Speaker 6>Well, I think you bloody them badly militarily to show

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<v Speaker 6>they cannot close the strait of hormones cost free. Look,

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<v Speaker 6>anybody who reads a map can tell that the strait

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<v Speaker 6>was a potential problem here, So it is known in

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<v Speaker 6>Trump's first term. I think history will record that his

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<v Speaker 6>unwillingness or inability to see that and not to prepare

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<v Speaker 6>for it in advance, was one of the big mistakes

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<v Speaker 6>of the operation. We knew, for example, we had to

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<v Speaker 6>destroy as many of Iran's missiles as we could to

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<v Speaker 6>prevent them from attacking our bases, Israel, our golf ballies,

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<v Speaker 6>but we were late in the game and making sure

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<v Speaker 6>that they couldn't close the Straight of Hormuz. If they

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<v Speaker 6>get out of the current situation simply by diplomacy, I

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<v Speaker 6>think it will lock in in their minds that they

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<v Speaker 6>can close the straight again by diplomacy and not suffer

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<v Speaker 6>any real consequences. So I think re establishing de terms

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<v Speaker 6>here means defeating the concept that they can just, on

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<v Speaker 6>their say so, act as if they're master of the strait.

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<v Speaker 3>Just to put a fine point out, are you suggesting

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<v Speaker 3>to hear the commander in chief is cartographically challenged that

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<v Speaker 3>he didn't think this through or didn't really understand the

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<v Speaker 3>gravity of this when he entered into this conflict.

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<v Speaker 6>Look in the first term, I tried to persuade him

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<v Speaker 6>to adopt regime change as our objective in Iran, unsuccessfully obviously,

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<v Speaker 6>and we had discussions of it. Plenty of people participated.

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<v Speaker 6>Closing the Straight of Hormuz is always one option that

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<v Speaker 6>was available to Iran. I mean, we should consider that

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<v Speaker 6>for decades oil prices have had an implicit subsidy because

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<v Speaker 6>nobody did try and close the Straight of Hormoz. Now

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<v Speaker 6>that play has been made, nobody can ever be doubtful

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<v Speaker 6>that they would try and use it again in the future,

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<v Speaker 6>unless they thought it was just too dangerous for them

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<v Speaker 6>to do it, which is all that this regime in

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<v Speaker 6>Tehran today understands that they'd be met by force and

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<v Speaker 6>they'd be defeated.

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<v Speaker 2>I want to ask you about that regime because at

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<v Speaker 2>the onset of this war, the president was saying that

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<v Speaker 2>it was time for Iranians to rise up and overthrow

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<v Speaker 2>the regime and courage that to do exactly use that

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<v Speaker 2>as one of the justifications for taking military action. I

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<v Speaker 2>have several Iranian friends, some with families still in Tehran.

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<v Speaker 2>They've suffered under this regime. They hate this regime, but

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<v Speaker 2>they have also suffered under this conflict, and they do

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<v Speaker 2>not seem to have the capacity or at this point

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<v Speaker 2>the will, given what's going on, to even attempt such

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<v Speaker 2>a thing. Is the current regime more less the same

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<v Speaker 2>level of extreme as the last regime? And do you

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<v Speaker 2>think the president should have taken your advice and either

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<v Speaker 2>not done it or gone all the way through and

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<v Speaker 2>try to enact regime change in Iran.

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<v Speaker 7>Yeah.

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<v Speaker 6>Mistake that the administration made before the start of the wars.

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<v Speaker 6>They didn't contact opponents of the regime inside Iran, with

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<v Speaker 6>a few very minor exceptions. If Trump was determined not

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<v Speaker 6>to use boots on the ground, then you need all

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<v Speaker 6>the more to be coordinating with people inside who want

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<v Speaker 6>to try and bring the regime down. It doesn't mean

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<v Speaker 6>the people going out on the streets on the first

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<v Speaker 6>day of the war. This regime massacred them. In January,

0:11:25.360 --> 0:11:27.840
<v Speaker 6>they'd massacred them again. That tells you how the regime

0:11:27.880 --> 0:11:33.040
<v Speaker 6>feels about its own people. But given the destruction of

0:11:33.080 --> 0:11:36.959
<v Speaker 6>the instruments of Iranian state power that our attacks represented

0:11:37.760 --> 0:11:40.560
<v Speaker 6>by working with the opposition inside. I think we could

0:11:40.559 --> 0:11:43.480
<v Speaker 6>have gone a long way to bringing the regime down,

0:11:43.720 --> 0:11:45.839
<v Speaker 6>but we didn't consult with them. We didn't say, how

0:11:45.880 --> 0:11:48.719
<v Speaker 6>can we help you organize? What resources do you need?

0:11:48.840 --> 0:11:52.439
<v Speaker 6>You need, communications, money, weapons, What do you need That

0:11:52.520 --> 0:11:56.440
<v Speaker 6>requires planning? It probably requires time. We just didn't do anything,

0:11:56.800 --> 0:11:59.800
<v Speaker 6>and I think we're on the verge of throwing away

0:12:00.080 --> 0:12:03.080
<v Speaker 6>a great opportunity for more peace and security for us,

0:12:03.280 --> 0:12:05.640
<v Speaker 6>for the Middle East, and God knows, for the people

0:12:05.679 --> 0:12:06.160
<v Speaker 6>of Iran.

0:12:06.400 --> 0:12:07.840
<v Speaker 3>We got a minute left. I want to ask you

0:12:07.880 --> 0:12:09.960
<v Speaker 3>what confidence you have in those who advising the president

0:12:10.000 --> 0:12:11.800
<v Speaker 3>right now. I imagine you know some of the principles here.

0:12:11.840 --> 0:12:14.360
<v Speaker 3>B that's Steve Whitcoffort. You're at Kushtra, You've interacted with

0:12:14.400 --> 0:12:17.199
<v Speaker 3>them in the past. Are you confident that they have

0:12:17.320 --> 0:12:21.240
<v Speaker 3>the kind of strategic Nohower's sense to improve the situation

0:12:21.320 --> 0:12:22.120
<v Speaker 3>that exists right now?

0:12:23.760 --> 0:12:26.680
<v Speaker 6>I don't think they understand the kinds of trade offs

0:12:26.679 --> 0:12:29.880
<v Speaker 6>they're making. For example, one of the most controversial aspects

0:12:30.600 --> 0:12:33.400
<v Speaker 6>that's still very murky in this deal is whether the

0:12:33.480 --> 0:12:38.959
<v Speaker 6>United States is going to unfreeze frozen Iranate assets and

0:12:39.320 --> 0:12:43.080
<v Speaker 6>make available to them other resources. I think that would

0:12:43.080 --> 0:12:47.360
<v Speaker 6>be a huge mistake. It's one thing to providefrozen assets

0:12:47.640 --> 0:12:50.320
<v Speaker 6>to a real government in Iran that represents the people.

0:12:50.360 --> 0:12:53.480
<v Speaker 6>If we provide this government frozen assets, it will entrench

0:12:53.520 --> 0:12:58.560
<v Speaker 6>itself still further. And I don't think real estate brokers

0:12:58.720 --> 0:13:01.439
<v Speaker 6>understand that that's what's at stake here. It's not about

0:13:01.480 --> 0:13:05.080
<v Speaker 6>economic development in Iran for that money, It's about re

0:13:05.280 --> 0:13:08.880
<v Speaker 6>entrenching and enabling the regime to stay in power. That

0:13:08.960 --> 0:13:11.480
<v Speaker 6>will be very bad politically for Trump if that's what

0:13:11.559 --> 0:13:12.040
<v Speaker 6>works out.

0:13:12.400 --> 0:13:14.400
<v Speaker 3>Always good to get your perspective of Master John Bolton,

0:13:14.400 --> 0:13:16.360
<v Speaker 3>the former National Security advisor for President Trump during the

0:13:16.360 --> 0:13:18.880
<v Speaker 3>first term, former US Ambassador to the United Nations as well.

0:13:18.920 --> 0:13:21.000
<v Speaker 3>Thank you for your time on this Sunday.

0:13:20.800 --> 0:13:22.439
<v Speaker 2>And New Yorker cartoon Efficiacy.

0:13:22.760 --> 0:13:23.520
<v Speaker 8>I did enjoy that.

0:13:24.080 --> 0:13:24.600
<v Speaker 2>Thank you, sir.

0:13:27.000 --> 0:13:30.000
<v Speaker 3>Stay with us for more on Bloomberg this weekend. Right

0:13:30.000 --> 0:13:44.360
<v Speaker 3>after this, Ethlan Lost joins us now from Bunia, the

0:13:44.400 --> 0:13:46.880
<v Speaker 3>capital of the Attree Province in the Democratic Republic of Congo,

0:13:46.880 --> 0:13:49.440
<v Speaker 3>which is the epicenter of the Cibola outbreak. It's great

0:13:49.440 --> 0:13:51.199
<v Speaker 3>to speak with you, Declan. Thank you very much for

0:13:51.559 --> 0:13:53.960
<v Speaker 3>being here. We see you in that video, you're wearing

0:13:53.960 --> 0:13:56.840
<v Speaker 3>a TAIVEK suit you have PPE. It's clear that those

0:13:56.960 --> 0:14:00.440
<v Speaker 3>visiting patients in that medical facility do not have taie

0:14:00.559 --> 0:14:03.440
<v Speaker 3>x suits or PPE. Can you just talk about the

0:14:03.480 --> 0:14:06.079
<v Speaker 3>capacity of this hospital to deal with what is still

0:14:06.120 --> 0:14:07.760
<v Speaker 3>a nascent outbreak in the DRC.

0:14:09.920 --> 0:14:13.319
<v Speaker 7>That particular hospital was I would say, completely overwhelmed when

0:14:13.360 --> 0:14:16.760
<v Speaker 7>we arrived. It's just it's the main public hospital in

0:14:16.760 --> 0:14:20.000
<v Speaker 7>a town, a gold mining town called Mungualu that's about

0:14:20.000 --> 0:14:23.120
<v Speaker 7>fifty miles north of here. That's where this outbreak is

0:14:23.200 --> 0:14:26.320
<v Speaker 7>believed to have started and as long as two months ago,

0:14:26.840 --> 0:14:32.400
<v Speaker 7>and when we arrived there, frankly, the public health facilities

0:14:32.400 --> 0:14:35.800
<v Speaker 7>appeared to be in crisis. As you see, there was

0:14:36.000 --> 0:14:41.840
<v Speaker 7>only protective equipment for medical staff like doctors, but otherwise

0:14:41.880 --> 0:14:45.600
<v Speaker 7>those wards were not secured. There was very minimal care

0:14:45.640 --> 0:14:50.240
<v Speaker 7>being given to patients, and then you had relatives and

0:14:50.320 --> 0:14:53.080
<v Speaker 7>other folk just walking in and out, and they seem

0:14:53.160 --> 0:14:56.040
<v Speaker 7>to be entirely unprotected, and of course that was putting

0:14:56.080 --> 0:14:59.960
<v Speaker 7>them at great risk and of course increasing the possibility

0:15:00.040 --> 0:15:03.200
<v Speaker 7>that the hospital itself would be a source of transmission

0:15:03.240 --> 0:15:04.640
<v Speaker 7>back out into the community.

0:15:05.160 --> 0:15:07.440
<v Speaker 2>Yeah, it looks I mean, it makes sense. Now that

0:15:07.440 --> 0:15:09.200
<v Speaker 2>you're saying that's the general hospital, because it looks to

0:15:09.240 --> 0:15:11.520
<v Speaker 2>me like TV wards I've been in places. It doesn't

0:15:11.520 --> 0:15:14.400
<v Speaker 2>look like a purpose built facility, which I guess is

0:15:14.440 --> 0:15:16.520
<v Speaker 2>part of the problem. I do want to ask you

0:15:16.600 --> 0:15:19.080
<v Speaker 2>briefly how you got there, And then David was pointing

0:15:19.080 --> 0:15:21.200
<v Speaker 2>out to me earlier this morning that you said that

0:15:21.240 --> 0:15:24.160
<v Speaker 2>you hadn't really planned on going in to this extent.

0:15:24.240 --> 0:15:25.880
<v Speaker 2>Why did you change your mind once you were on

0:15:25.920 --> 0:15:26.320
<v Speaker 2>the ground.

0:15:28.360 --> 0:15:30.920
<v Speaker 7>We were there for several days. We'd spoken with the

0:15:31.320 --> 0:15:33.760
<v Speaker 7>with the medical staff, got their permission, we got the

0:15:33.840 --> 0:15:37.560
<v Speaker 7>permission from the patients to enter that ward, and you know,

0:15:37.880 --> 0:15:41.320
<v Speaker 7>I just felt it was very important to witness firsthand

0:15:41.440 --> 0:15:45.520
<v Speaker 7>and to show the reality of care in the Congo,

0:15:46.040 --> 0:15:50.200
<v Speaker 7>particularly in this frontline area here in the main city. Bunye,

0:15:51.240 --> 0:15:53.480
<v Speaker 7>the head of the who has been here the last

0:15:53.480 --> 0:15:58.600
<v Speaker 7>couple of days, Doctor tedros gabiesis there. You know, AID

0:15:58.600 --> 0:16:02.400
<v Speaker 7>agencies are present here. There's certainly some supplies coming in now.

0:16:02.520 --> 0:16:05.480
<v Speaker 7>Is that the opening of a new isolation ward in

0:16:05.520 --> 0:16:09.240
<v Speaker 7>the city this morning? But up there in those rural

0:16:09.280 --> 0:16:13.520
<v Speaker 7>areas where the greatest number of cases are found, for

0:16:13.600 --> 0:16:17.880
<v Speaker 7>a whole combination of factors. It's extremely very little aid

0:16:17.960 --> 0:16:20.760
<v Speaker 7>has reached there so far, and you know they're in

0:16:20.800 --> 0:16:23.680
<v Speaker 7>a crisis situation, which of course is bad, terrible news

0:16:23.680 --> 0:16:26.320
<v Speaker 7>for the people who are already sick, but it also

0:16:26.440 --> 0:16:31.240
<v Speaker 7>means that the spread of this virus is frankly unknown

0:16:31.400 --> 0:16:33.120
<v Speaker 7>and probably still uncontained.

0:16:33.400 --> 0:16:36.320
<v Speaker 3>Dechlan something we've spoken about with Jeremy Connandyke, public health

0:16:36.320 --> 0:16:39.040
<v Speaker 3>official from the US, with Tom Frieden, former head of

0:16:39.040 --> 0:16:42.000
<v Speaker 3>the CDC, as well as just about the cultural difficulties

0:16:42.000 --> 0:16:45.200
<v Speaker 3>here conveying to the population the seriousness of this outbreak,

0:16:45.200 --> 0:16:47.240
<v Speaker 3>and you point to something very worrisome in your piece.

0:16:47.280 --> 0:16:49.960
<v Speaker 3>You say many refuse to accept the virus was real.

0:16:50.040 --> 0:16:52.120
<v Speaker 3>You continue, Some said the outbreak was a money making

0:16:52.120 --> 0:16:56.160
<v Speaker 3>plot concocted by Congolese doctors and Ford aid workers. Others

0:16:56.200 --> 0:16:59.360
<v Speaker 3>call it a curse. As we talk about the deficit

0:16:59.440 --> 0:17:03.000
<v Speaker 3>in the health response to this crisis, how acute is

0:17:03.040 --> 0:17:06.119
<v Speaker 3>this problem in particular just conveying to the population how

0:17:06.240 --> 0:17:08.560
<v Speaker 3>dangerous this is, and trying to explain in light of

0:17:08.600 --> 0:17:12.639
<v Speaker 3>those the sense of what's happening here that that in

0:17:12.640 --> 0:17:14.679
<v Speaker 3>fact is not the case. This is a very serious virus.

0:17:16.359 --> 0:17:20.639
<v Speaker 7>It's an absolutely crucial point when you speak to aid workers. Second,

0:17:20.680 --> 0:17:22.760
<v Speaker 7>the first thing they'll tell you is they need equipment.

0:17:23.000 --> 0:17:26.080
<v Speaker 7>The second thing they'll say they need is education and

0:17:26.160 --> 0:17:30.000
<v Speaker 7>engagement with these communities. Some of these communities are extremely

0:17:30.040 --> 0:17:32.879
<v Speaker 7>hostile to the virus. It's not just sorry to the

0:17:32.880 --> 0:17:35.280
<v Speaker 7>idea of the virus. It's not just that they don't

0:17:35.320 --> 0:17:39.000
<v Speaker 7>believe it exists. They have carried out attacks against hospitals.

0:17:39.040 --> 0:17:42.159
<v Speaker 7>The hospital that I visited had an isolation ward that

0:17:42.200 --> 0:17:45.879
<v Speaker 7>was under construction burned down. It came under attack the

0:17:45.920 --> 0:17:48.800
<v Speaker 7>first night we were there from a group of over

0:17:48.800 --> 0:17:51.520
<v Speaker 7>one hundred people who wanted to retrieve the body of

0:17:51.560 --> 0:17:54.480
<v Speaker 7>a local spiritual leader who had just died of abola.

0:17:55.320 --> 0:17:57.880
<v Speaker 7>And what that all gets to is the whole practice

0:17:57.920 --> 0:18:01.480
<v Speaker 7>of funerals. I think, as you noted, you know, the

0:18:01.520 --> 0:18:05.400
<v Speaker 7>body of a person. A person is most contagious at

0:18:05.400 --> 0:18:08.560
<v Speaker 7>the last stages of the disease and after they have died,

0:18:08.960 --> 0:18:12.760
<v Speaker 7>So how the dead or buried is absolutely crucial. Otherwise

0:18:13.080 --> 0:18:16.680
<v Speaker 7>funerals can turn into super spreader events. So you see

0:18:16.720 --> 0:18:20.640
<v Speaker 7>these really courageous local health workers and Red Cross officials

0:18:20.680 --> 0:18:23.440
<v Speaker 7>who are doing their best to educate people to try

0:18:23.480 --> 0:18:28.280
<v Speaker 7>and carry out safe burials of bodies, but because frankly,

0:18:28.640 --> 0:18:31.720
<v Speaker 7>the effort is so far behind the curve. As I said,

0:18:32.640 --> 0:18:36.720
<v Speaker 7>this outbreak is thought to have started probably six weeks

0:18:36.760 --> 0:18:40.159
<v Speaker 7>maybe two months ago, but was only declared discovered and

0:18:40.200 --> 0:18:44.160
<v Speaker 7>declared two weeks ago. So the entire effort is far

0:18:44.320 --> 0:18:47.600
<v Speaker 7>behind the curve, which means there's very little reliable data

0:18:47.920 --> 0:18:50.960
<v Speaker 7>about how much it has spread, and that's only feeding

0:18:50.960 --> 0:18:54.840
<v Speaker 7>into this suspicion among local communities who, as far as

0:18:54.840 --> 0:18:58.440
<v Speaker 7>they're concerned, to see people going into hospitals just to die.

0:18:58.720 --> 0:19:00.840
<v Speaker 2>Deethan, I also want to ask you, I want to

0:19:00.840 --> 0:19:02.560
<v Speaker 2>focus on something you talk about, because you report that

0:19:02.560 --> 0:19:05.399
<v Speaker 2>the hospital has no food or water to give to

0:19:05.440 --> 0:19:09.520
<v Speaker 2>ailing patients. This is consistently an issue with health care

0:19:09.520 --> 0:19:12.680
<v Speaker 2>in places like this. I know when you're giving HIV medication,

0:19:12.720 --> 0:19:15.160
<v Speaker 2>when you're giving tuberculos and the medication, when you're giving

0:19:15.160 --> 0:19:18.320
<v Speaker 2>supportive care. That supportive care can't work if your patient

0:19:18.400 --> 0:19:20.680
<v Speaker 2>is malnourished or you don't have clean water, And it's

0:19:20.720 --> 0:19:23.600
<v Speaker 2>often the part of the response that it seems to

0:19:23.600 --> 0:19:26.399
<v Speaker 2>get lost in the shuffle. Are there any efforts being

0:19:26.480 --> 0:19:29.240
<v Speaker 2>made to address that piece of this? What is needed

0:19:29.320 --> 0:19:35.000
<v Speaker 2>and where do you think it should be coming from.

0:19:33.400 --> 0:19:36.000
<v Speaker 7>Look very I mean, certainly the World Food Program have

0:19:36.119 --> 0:19:39.520
<v Speaker 7>mobilized in this area. They're mounting feeding programs and so on.

0:19:39.880 --> 0:19:42.640
<v Speaker 7>But you know, there are two issues with that. Firstly,

0:19:43.280 --> 0:19:46.040
<v Speaker 7>as you say, you know, in a hospital like this,

0:19:47.040 --> 0:19:50.160
<v Speaker 7>they just don't generally for normal treatment to provide food

0:19:50.240 --> 0:19:50.560
<v Speaker 7>or water.

0:19:50.800 --> 0:19:53.120
<v Speaker 2>The families are generally responsible for bringing food.

0:19:52.960 --> 0:19:53.840
<v Speaker 3>To family.

0:19:55.160 --> 0:19:57.199
<v Speaker 7>They come in, they provide the food. Now that is

0:19:57.200 --> 0:20:01.159
<v Speaker 7>providing a biosecurity hazard in this environment because family members

0:20:01.200 --> 0:20:04.440
<v Speaker 7>come in unprotected to provide food to people and run

0:20:04.520 --> 0:20:08.200
<v Speaker 7>a high risk of being contaminated themselves. The other issue

0:20:08.240 --> 0:20:10.800
<v Speaker 7>is in terms of people's ability to fight this virus.

0:20:11.200 --> 0:20:14.600
<v Speaker 7>Because this virus is a it's a rare virus that

0:20:14.760 --> 0:20:18.600
<v Speaker 7>as yet has no vaccine and no cure. The only

0:20:18.760 --> 0:20:21.440
<v Speaker 7>way to treat it really is to bolster the defenses

0:20:21.480 --> 0:20:23.960
<v Speaker 7>of a person who is sick in order that their

0:20:23.960 --> 0:20:28.919
<v Speaker 7>own body can fight that virus. And obviously, food, water,

0:20:29.200 --> 0:20:33.560
<v Speaker 7>IV drips, all of these very basic you know, not

0:20:33.640 --> 0:20:38.600
<v Speaker 7>even medical treatments, but certainly basic things to bolster their

0:20:38.640 --> 0:20:43.000
<v Speaker 7>immune system are key. And that's why if the medical

0:20:43.040 --> 0:20:46.479
<v Speaker 7>authorities are going to successfully start to push back this

0:20:46.960 --> 0:20:49.760
<v Speaker 7>wave of infections, they're going to have to get those

0:20:49.800 --> 0:20:51.640
<v Speaker 7>pieces in places as well. Becha.

0:20:51.760 --> 0:20:53.399
<v Speaker 3>Let me ask you lastly, just about what you heard

0:20:53.400 --> 0:20:55.680
<v Speaker 3>from that Condolese doctor with whom you spent the most time.

0:20:55.720 --> 0:20:58.800
<v Speaker 3>And I think in circumstances like this, past outbreaks, the

0:20:58.840 --> 0:21:01.880
<v Speaker 3>frustration and exhaust are palpable among the medical staff were

0:21:01.880 --> 0:21:06.239
<v Speaker 3>in facilities like this one. How would you assess his

0:21:06.359 --> 0:21:08.480
<v Speaker 3>level of optimism that this is going to get under control,

0:21:08.480 --> 0:21:10.040
<v Speaker 3>and indeed, what does he need or what does he

0:21:10.080 --> 0:21:11.359
<v Speaker 3>say that he needs going forward.

0:21:13.520 --> 0:21:17.639
<v Speaker 7>I think firstly he just wanted protective equipment for the staff. Secondly,

0:21:17.720 --> 0:21:20.280
<v Speaker 7>he wanted to be able to secure that hospital so

0:21:20.320 --> 0:21:23.760
<v Speaker 7>that they could work in a safe environment. You know,

0:21:23.920 --> 0:21:26.600
<v Speaker 7>when I met that man in the war, the young doctor,

0:21:27.000 --> 0:21:29.840
<v Speaker 7>you know, he was just not just exhausted. He'd just

0:21:29.880 --> 0:21:32.399
<v Speaker 7>come off a night shift where someone had died during

0:21:32.400 --> 0:21:35.359
<v Speaker 7>the night, a lady fell into a coma and died.

0:21:36.520 --> 0:21:39.040
<v Speaker 7>But you know, he really felt like he was at

0:21:39.080 --> 0:21:40.960
<v Speaker 7>the end of his tether. He said, we were almost

0:21:41.040 --> 0:21:44.080
<v Speaker 7>two weeks into this crisis and this is all we have.

0:21:44.280 --> 0:21:47.119
<v Speaker 7>How is it possible that both my own government but

0:21:47.200 --> 0:21:50.720
<v Speaker 7>also this international system that has you know, deployed to

0:21:50.840 --> 0:21:54.480
<v Speaker 7>so many of these abula emergencies. He was basically saying,

0:21:54.720 --> 0:21:57.320
<v Speaker 7>why is that not here? And that kind of frustration

0:21:57.520 --> 0:22:00.680
<v Speaker 7>is palpable among many of the health profession and healthcare

0:22:00.680 --> 0:22:03.600
<v Speaker 7>professionals you meet in some of these frontline areas.

0:22:04.359 --> 0:22:07.679
<v Speaker 2>Declan Walsh, New York Times Chief Africa Correspondent, joining us

0:22:07.680 --> 0:22:09.640
<v Speaker 2>from the DARC, thank you so much for taking the time.

0:22:10.000 --> 0:22:12.600
<v Speaker 2>Thank you to you and your crew, and frankly, whatever

0:22:12.680 --> 0:22:14.359
<v Speaker 2>editor is signed off and allows you to do this

0:22:14.400 --> 0:22:16.560
<v Speaker 2>on the ground reporting, which we know is getting harder

0:22:16.560 --> 0:22:18.359
<v Speaker 2>and harder to do. So thank you, truly, thank you

0:22:18.359 --> 0:22:22.080
<v Speaker 2>to all of you this morning. Stay with us for

0:22:22.160 --> 0:22:37.520
<v Speaker 2>more on Bloomberg this weekend right after this. There are

0:22:37.520 --> 0:22:40.720
<v Speaker 2>goals in the tech sector, and as more companies incorporate

0:22:40.760 --> 0:22:43.119
<v Speaker 2>AI into their day to day work, some of them

0:22:43.160 --> 0:22:45.879
<v Speaker 2>are coming to realize that those goals, if using AI

0:22:45.960 --> 0:22:47.880
<v Speaker 2>to pursue them, come at a bit of a price.

0:22:48.200 --> 0:22:51.520
<v Speaker 2>Microsoft cancels most of its cloud code licenses, and Uber

0:22:51.640 --> 0:22:55.080
<v Speaker 2>Coeo said AI costs, excuse me, are getting quote harder

0:22:55.119 --> 0:22:55.840
<v Speaker 2>to justify that.

0:22:55.880 --> 0:22:58.879
<v Speaker 3>Scott Amconda Wrights Innovation doesn't only need the technology but

0:22:58.880 --> 0:23:02.000
<v Speaker 3>also the physical infant structure to support the product. It

0:23:02.080 --> 0:23:04.200
<v Speaker 3>as a calumnist for Bloomberg Opinion and a lecturer at the

0:23:04.240 --> 0:23:06.120
<v Speaker 3>Ale School of Management. He joins us now on set

0:23:06.119 --> 0:23:09.400
<v Speaker 3>here in New York. Wonderful to see you. Let's talk

0:23:09.440 --> 0:23:12.480
<v Speaker 3>about this, the effervescence, the enthusiasm surrounding a I meeting

0:23:12.520 --> 0:23:14.800
<v Speaker 3>the reality of having to pay for it. And there

0:23:14.840 --> 0:23:17.560
<v Speaker 3>are extreme things that I think of the amount of money,

0:23:17.600 --> 0:23:20.040
<v Speaker 3>for instance, that Meta has poured into this. Let's begun

0:23:20.080 --> 0:23:23.160
<v Speaker 3>to retrench some of that here. How widely spread is that?

0:23:23.320 --> 0:23:25.760
<v Speaker 3>Are a lot of companies kind of reckoning with what

0:23:25.880 --> 0:23:27.240
<v Speaker 3>is this going to be and is it worth the

0:23:27.280 --> 0:23:28.400
<v Speaker 3>investment at this point in time?

0:23:28.560 --> 0:23:32.639
<v Speaker 9>So great to be here, so yes, but there's a

0:23:32.680 --> 0:23:35.639
<v Speaker 9>nuance here, right. So the company there's a company I

0:23:35.720 --> 0:23:38.119
<v Speaker 9>was talking to the CEO yesterday. He said, if Claude

0:23:38.200 --> 0:23:41.560
<v Speaker 9>charged us ten times what it does right now, he said,

0:23:41.600 --> 0:23:43.080
<v Speaker 9>I would pay it and I wouldn't hesitate.

0:23:43.040 --> 0:23:44.440
<v Speaker 8>He's like, I wouldn't even think twice.

0:23:44.520 --> 0:23:46.040
<v Speaker 2>So what kind of company is that? And what is

0:23:46.080 --> 0:23:46.640
<v Speaker 2>the application?

0:23:46.760 --> 0:23:46.879
<v Speaker 6>Right?

0:23:46.920 --> 0:23:48.040
<v Speaker 8>It's a small healthcare company.

0:23:48.119 --> 0:23:50.439
<v Speaker 9>So like so there's there's that's there's a big difference

0:23:50.440 --> 0:23:53.199
<v Speaker 9>when you have ten thousand engineers who are running you know,

0:23:53.400 --> 0:23:56.200
<v Speaker 9>two thousand dollars per head if you go ten x, right,

0:23:56.400 --> 0:23:59.760
<v Speaker 9>things change when you're at that scale. But I think

0:23:59.800 --> 0:24:02.280
<v Speaker 9>what which really what driving this is it's really interesting

0:24:02.320 --> 0:24:05.200
<v Speaker 9>that the debate on AI is kind of missing something

0:24:05.200 --> 0:24:07.040
<v Speaker 9>pretty big, right, and that that, I think is what

0:24:07.080 --> 0:24:09.680
<v Speaker 9>this cost thing is starting to drive us towards. Because

0:24:09.680 --> 0:24:12.280
<v Speaker 9>you see they're the boosters and you know, I used

0:24:12.320 --> 0:24:14.960
<v Speaker 9>to code. The ability to talk to my computer and

0:24:14.960 --> 0:24:18.600
<v Speaker 9>have it do something without is genuinely it feels miraculous.

0:24:19.119 --> 0:24:19.800
<v Speaker 8>It's astonishing.

0:24:20.280 --> 0:24:21.840
<v Speaker 9>And then there are people, some of them people, people

0:24:21.840 --> 0:24:24.600
<v Speaker 9>with enormous scientific and technical credibility, who say this is

0:24:24.640 --> 0:24:26.199
<v Speaker 9>not going to come together the way you think, like

0:24:26.200 --> 0:24:28.639
<v Speaker 9>this technology doesn't have the potential you think there's height.

0:24:28.680 --> 0:24:31.119
<v Speaker 8>Those are also serious people you shouldn't dismiss the.

0:24:31.359 --> 0:24:32.959
<v Speaker 3>Humorous per se, but skeptics of this.

0:24:33.080 --> 0:24:35.600
<v Speaker 9>Yeah, there's a third scenario which it just strikes me

0:24:35.640 --> 0:24:38.879
<v Speaker 9>no one talks about, which is you can have a revolutionary,

0:24:38.920 --> 0:24:43.159
<v Speaker 9>world changing, astonishing technology that doesn't end up making anyone

0:24:43.160 --> 0:24:47.399
<v Speaker 9>any money. And this is the thing that people I

0:24:47.400 --> 0:24:48.600
<v Speaker 9>don't see people talking about.

0:24:48.760 --> 0:24:51.640
<v Speaker 8>I don't give you two examples. The airline. No one

0:24:51.640 --> 0:24:55.320
<v Speaker 8>would deny that the airline industry, right, just change the world. Right,

0:24:55.440 --> 0:24:57.920
<v Speaker 8>you can go anywhere, perfect safety and ep nuts on

0:24:57.960 --> 0:25:00.400
<v Speaker 8>the way. Just remarkable, more.

0:25:00.320 --> 0:25:02.720
<v Speaker 2>Of a Pretzel's gown myself. But I'm going to continue.

0:25:02.760 --> 0:25:05.720
<v Speaker 9>But you know, Warren Buffett famously said that the airlines

0:25:05.760 --> 0:25:08.919
<v Speaker 9>were such a machine for incinerating capital that if you know,

0:25:08.920 --> 0:25:11.679
<v Speaker 9>if an enterprising if an enterprising capitalist had been at

0:25:11.720 --> 0:25:13.800
<v Speaker 9>Kitty Hawk when Orville took his flight, he should have

0:25:13.800 --> 0:25:17.800
<v Speaker 9>shot the thing down, right, Like, No, you can change

0:25:17.840 --> 0:25:20.720
<v Speaker 9>the world and not make money. In biotech, you saw

0:25:20.880 --> 0:25:23.800
<v Speaker 9>sort of, you know, the biotech revolution starting nineteen seventy five.

0:25:24.080 --> 0:25:26.000
<v Speaker 9>So from nineteen seventy five to two thousand and four,

0:25:26.080 --> 0:25:29.200
<v Speaker 9>Gary Pizano at Harvard Business School showed that the biotech

0:25:29.320 --> 0:25:34.800
<v Speaker 9>industry might maybe have made money in one year, right,

0:25:34.840 --> 0:25:37.280
<v Speaker 9>and for that entire time it was essentially just a

0:25:37.320 --> 0:25:39.280
<v Speaker 9>furnace for money. You poured money in, and you know,

0:25:39.359 --> 0:25:42.959
<v Speaker 9>drugs came out, live, came save, but people didn't make money. Right,

0:25:43.000 --> 0:25:48.160
<v Speaker 9>And you've got huge capital investments, lots of uncertainty, long

0:25:48.200 --> 0:25:51.040
<v Speaker 9>delays of before payoff, enormous costs.

0:25:51.520 --> 0:25:52.840
<v Speaker 8>Oh and the.

0:25:52.800 --> 0:25:55.520
<v Speaker 9>Problem that you know that AI is dealing with that

0:25:55.600 --> 0:25:59.320
<v Speaker 9>biotech didn't is the open Weights labs out of China

0:25:59.359 --> 0:26:03.400
<v Speaker 9>and the last benchmarks are four to eight months behind.

0:26:04.040 --> 0:26:07.679
<v Speaker 8>Wow, that's not much of a mote, it's right. Yeah.

0:26:07.800 --> 0:26:09.840
<v Speaker 2>I also want to ask you talk a lot about

0:26:10.160 --> 0:26:12.760
<v Speaker 2>the physical end of this and the scarcity of compute

0:26:12.800 --> 0:26:15.119
<v Speaker 2>and these data centers that have to go in and

0:26:15.160 --> 0:26:17.880
<v Speaker 2>you make a comparison to Edison when they were starting.

0:26:18.119 --> 0:26:21.080
<v Speaker 9>Please explain that, right, So, when Edison built the light bulb,

0:26:21.119 --> 0:26:23.119
<v Speaker 9>you know, this is so iconic that we have a

0:26:23.119 --> 0:26:25.520
<v Speaker 9>bright idea cartoonist sketches a light bulb over our head.

0:26:25.680 --> 0:26:26.760
<v Speaker 2>David gets more of those than I.

0:26:27.280 --> 0:26:28.960
<v Speaker 8>It's fine, so fantastic.

0:26:29.000 --> 0:26:30.880
<v Speaker 9>You know, my wife says that minds are very mind

0:26:30.920 --> 0:26:32.080
<v Speaker 9>or very dim, but that's fine, Like.

0:26:32.080 --> 0:26:33.800
<v Speaker 2>Yeah, you know what, it's there and that's what matters.

0:26:33.880 --> 0:26:36.440
<v Speaker 8>That's the key. But he did.

0:26:36.600 --> 0:26:39.560
<v Speaker 9>When the first Edison generator plant rolled out in New

0:26:39.640 --> 0:26:42.199
<v Speaker 9>York City and I started, they were serving something like

0:26:42.280 --> 0:26:45.679
<v Speaker 9>four hundred light bulbs. Right, So you can have an

0:26:45.680 --> 0:26:49.040
<v Speaker 9>astonishing technology, but you need a network and ecosystem of

0:26:49.080 --> 0:26:52.000
<v Speaker 9>other enabling technologies that have to build up to do that.

0:26:52.200 --> 0:26:54.879
<v Speaker 9>In his case, it was generators and wiring and you know,

0:26:55.080 --> 0:26:58.879
<v Speaker 9>everything involved in a power transmission system for AI. So

0:26:59.119 --> 0:27:00.760
<v Speaker 9>we are used to and I think a lot of

0:27:00.800 --> 0:27:03.200
<v Speaker 9>the sort of especially the vcs who went into AI,

0:27:03.320 --> 0:27:05.159
<v Speaker 9>is so heavy. They're kind of used to investing in

0:27:05.200 --> 0:27:08.479
<v Speaker 9>SaaS companies, right, where scaling costs zero and the marginal

0:27:08.440 --> 0:27:12.159
<v Speaker 9>cost are production is zero. But AI is profoundly quite different,

0:27:12.240 --> 0:27:15.840
<v Speaker 9>right because you don't see as users go up the

0:27:15.880 --> 0:27:17.719
<v Speaker 9>marginal cost going down that much.

0:27:18.840 --> 0:27:20.320
<v Speaker 8>Almostly it says the same, but it doesn't drop.

0:27:20.640 --> 0:27:22.879
<v Speaker 9>It isn't a zero, right, Like just these things are

0:27:22.920 --> 0:27:26.480
<v Speaker 9>really expensive to run, and so the scaling of this

0:27:26.800 --> 0:27:30.359
<v Speaker 9>involves capital expenditures and physical construction and you know, simple

0:27:30.359 --> 0:27:33.720
<v Speaker 9>stuff pouring concrete, wiring buildings.

0:27:34.400 --> 0:27:36.360
<v Speaker 8>Those things are hard, right, They're.

0:27:36.200 --> 0:27:39.840
<v Speaker 9>Not like dumping code onto the Internet, and you need

0:27:39.880 --> 0:27:42.320
<v Speaker 9>plumbers and electricians. And you know, my joke about it was,

0:27:42.359 --> 0:27:44.560
<v Speaker 9>it's the return of the jocks, right, it's the the

0:27:44.680 --> 0:27:48.600
<v Speaker 9>guys who actually and the women who do physical labor

0:27:49.160 --> 0:27:53.000
<v Speaker 9>are becoming constraint here. That is unlike most things that

0:27:53.000 --> 0:27:55.640
<v Speaker 9>the software you know that this world has seen before.

0:27:55.680 --> 0:27:57.400
<v Speaker 2>And a lot of those trades are understaffed as well

0:27:57.400 --> 0:27:57.960
<v Speaker 2>at the moment.

0:27:58.040 --> 0:27:59.880
<v Speaker 3>Yeah, let me look at the other side of that. Coin,

0:28:00.119 --> 0:28:01.760
<v Speaker 3>and I think you're talking about how this might not

0:28:01.800 --> 0:28:03.760
<v Speaker 3>make money, might not lead to the kind of changes

0:28:03.800 --> 0:28:06.400
<v Speaker 3>a lot of proponents are talking about here. It does

0:28:06.440 --> 0:28:08.320
<v Speaker 3>strike me the fact that this does have this whole

0:28:08.320 --> 0:28:11.879
<v Speaker 3>complementary infrastructure component to it may make us less willing

0:28:11.920 --> 0:28:13.880
<v Speaker 3>to see the fact that it might not make money,

0:28:13.880 --> 0:28:15.959
<v Speaker 3>that this is seen as not just something that's going

0:28:15.960 --> 0:28:19.760
<v Speaker 3>to improve the economy of information technology financial services, but

0:28:19.880 --> 0:28:22.280
<v Speaker 3>could have this wider spread effect on the US economy.

0:28:22.359 --> 0:28:23.880
<v Speaker 3>Do you think that's true? Is it clouding our sense?

0:28:23.920 --> 0:28:26.840
<v Speaker 3>Are we willing to pony up and pay for all

0:28:26.880 --> 0:28:29.760
<v Speaker 3>of this fiscal construction because it seems like it's providing

0:28:29.760 --> 0:28:31.360
<v Speaker 3>these wider benefits to the country.

0:28:31.040 --> 0:28:33.440
<v Speaker 9>So I think that cuts both ways, right, So it

0:28:33.520 --> 0:28:35.640
<v Speaker 9>is you know, if you are an electrician, right now,

0:28:35.760 --> 0:28:38.440
<v Speaker 9>this is awesome, Like, this is fantastic. This is the

0:28:38.480 --> 0:28:39.840
<v Speaker 9>best thing that's happened to you in a long time.

0:28:39.880 --> 0:28:42.400
<v Speaker 9>And since the Nited States a sort of apparently decided

0:28:42.400 --> 0:28:44.040
<v Speaker 9>as a matter of national policy, we're not going to

0:28:44.040 --> 0:28:45.720
<v Speaker 9>build housing and at least we're.

0:28:45.560 --> 0:28:46.520
<v Speaker 3>Building real data center.

0:28:47.240 --> 0:28:49.400
<v Speaker 8>At least we'll build something that's great.

0:28:49.800 --> 0:28:51.760
<v Speaker 9>But of course the flip side of that is data

0:28:51.760 --> 0:28:55.920
<v Speaker 9>centers are incredibly unpopular or they cause political pushback everywhere

0:28:56.000 --> 0:29:00.360
<v Speaker 9>they go. Large portions of Silicon Valley appear to opted

0:29:00.400 --> 0:29:04.520
<v Speaker 9>the pr strategy of James Bond villains, and there is

0:29:04.560 --> 0:29:07.600
<v Speaker 9>this kind of I think, you know, in some cases,

0:29:07.640 --> 0:29:09.000
<v Speaker 9>I'm not sure this is about the data center as

0:29:09.040 --> 0:29:11.360
<v Speaker 9>much as just an incohate rage of pushback and this

0:29:11.400 --> 0:29:13.280
<v Speaker 9>is a thing we can we can go after, right

0:29:13.800 --> 0:29:17.480
<v Speaker 9>And so when you're building this kind of infrastructure, you

0:29:17.560 --> 0:29:21.080
<v Speaker 9>need the people there to say yes. And right now, America,

0:29:21.120 --> 0:29:24.120
<v Speaker 9>despite all these benefits, and I mean Louden County, Virginia,

0:29:24.160 --> 0:29:25.320
<v Speaker 9>oh my gosh just said.

0:29:25.120 --> 0:29:27.880
<v Speaker 3>That they're telling with stone without hitting a data center.

0:29:28.000 --> 0:29:29.600
<v Speaker 9>I grew up in Rockville, Maryland, so this is like

0:29:29.640 --> 0:29:32.520
<v Speaker 9>home for me. Right, Sixty percent of their tax revenues

0:29:32.560 --> 0:29:34.600
<v Speaker 9>are going to be coming from data centers, So you

0:29:34.640 --> 0:29:37.280
<v Speaker 9>would think this would be great, and yet instead you're

0:29:37.280 --> 0:29:39.800
<v Speaker 9>seeing this huge pushback. I think this is another case

0:29:39.840 --> 0:29:42.440
<v Speaker 9>where the industry's norms that it's that have evolved over

0:29:42.440 --> 0:29:45.160
<v Speaker 9>the last generation kind of need to yield to the

0:29:45.200 --> 0:29:51.040
<v Speaker 9>fact that saying having a public relations campaign where we're

0:29:51.160 --> 0:29:52.760
<v Speaker 9>going to take away your.

0:29:52.680 --> 0:29:54.960
<v Speaker 8>Job and possibly end there's end of humanity.

0:29:57.800 --> 0:30:01.680
<v Speaker 2>Yeah, there's another PRL meant that you highlight in your

0:30:01.720 --> 0:30:05.080
<v Speaker 2>latest column, and I wasn't even that aware of this,

0:30:05.200 --> 0:30:08.280
<v Speaker 2>And that's you talk about where they're choosing to put

0:30:08.320 --> 0:30:11.120
<v Speaker 2>some of this infrastructure, and it's in places that feels

0:30:11.200 --> 0:30:15.480
<v Speaker 2>a bit exploitive, like especially there's this colossus one is

0:30:15.520 --> 0:30:17.960
<v Speaker 2>going in largely without air permits, in a largely black

0:30:18.000 --> 0:30:20.880
<v Speaker 2>neighborhood of Memphis. You talk about, So talk us through

0:30:21.120 --> 0:30:23.200
<v Speaker 2>why those places and what that's doing.

0:30:23.440 --> 0:30:25.840
<v Speaker 9>I mean, those places have less political power to push

0:30:25.920 --> 0:30:28.080
<v Speaker 9>back when the pollution gets so bad. Right, and so

0:30:28.200 --> 0:30:31.240
<v Speaker 9>if you are an under enormous pressure to scale up

0:30:31.280 --> 0:30:33.680
<v Speaker 9>your compute and you decide that the way to do

0:30:33.720 --> 0:30:36.560
<v Speaker 9>that is to cut corners, and given all the obstacles

0:30:36.600 --> 0:30:39.160
<v Speaker 9>that we've just talked about, you can see why the

0:30:39.160 --> 0:30:40.920
<v Speaker 9>way you might decide to do that is to cut corners.

0:30:41.400 --> 0:30:43.560
<v Speaker 9>It's easiest to do it in places where people have

0:30:43.640 --> 0:30:46.200
<v Speaker 9>the least power to complain. If you do that in

0:30:46.440 --> 0:30:49.360
<v Speaker 9>you know, Malibu, it's.

0:30:49.240 --> 0:30:50.080
<v Speaker 8>Not going to go down with.

0:30:52.520 --> 0:30:52.760
<v Speaker 7>Mali.

0:30:53.080 --> 0:30:55.200
<v Speaker 2>We also had a lot of time even in Laden County,

0:30:55.200 --> 0:30:57.239
<v Speaker 2>Fladden County didn't want those data centers. You can bet

0:30:57.280 --> 0:30:58.960
<v Speaker 2>they wouldn't be going in there, that's right.

0:30:59.520 --> 0:31:01.600
<v Speaker 3>I would ask, how are you thinking about the effect

0:31:01.600 --> 0:31:03.080
<v Speaker 3>this is having on the labor market? So you mentioned

0:31:03.080 --> 0:31:04.560
<v Speaker 3>that Pitch is going to take away all the judge

0:31:04.600 --> 0:31:07.120
<v Speaker 3>opened up my computer on Friday, Touriston Slock of Apollo

0:31:07.160 --> 0:31:09.560
<v Speaker 3>had this note, there is no negative effect on the

0:31:09.600 --> 0:31:11.600
<v Speaker 3>labor market because of AI. We're not seeing jobs lost

0:31:11.600 --> 0:31:14.160
<v Speaker 3>as a result of it. Yet, how are you thinking

0:31:14.200 --> 0:31:16.760
<v Speaker 3>about that? Putting aside again all of the kind of

0:31:16.760 --> 0:31:20.200
<v Speaker 3>ideological perspectives on where this might lead to eventually, do

0:31:20.240 --> 0:31:22.040
<v Speaker 3>you think it is having an effect? Is it changing

0:31:22.040 --> 0:31:25.920
<v Speaker 3>how companies, the CEOs of whom you talk regularly, the

0:31:25.960 --> 0:31:27.440
<v Speaker 3>way that they hire, the way that they fire, the

0:31:27.440 --> 0:31:28.800
<v Speaker 3>way that they staff their companies?

0:31:28.880 --> 0:31:29.160
<v Speaker 7>Yet?

0:31:30.240 --> 0:31:32.600
<v Speaker 9>Yeah, but it's what I'd say, is what it's showing

0:31:32.680 --> 0:31:34.480
<v Speaker 9>up in is it's two ways.

0:31:34.640 --> 0:31:34.800
<v Speaker 3>Right.

0:31:35.080 --> 0:31:37.480
<v Speaker 9>It's less firing, although we're seeing some of that, and

0:31:37.520 --> 0:31:39.160
<v Speaker 9>a lot of the firing that is happening is less.

0:31:39.160 --> 0:31:41.560
<v Speaker 9>I think about AI enabling productivity and more people kind

0:31:41.560 --> 0:31:44.320
<v Speaker 9>of scrambling for cash to sort of try and chip

0:31:44.320 --> 0:31:48.560
<v Speaker 9>away at these dragantic capital expertures. But it's making it less.

0:31:48.640 --> 0:31:50.560
<v Speaker 9>I think people are becoming a more reluctant to hire

0:31:50.840 --> 0:31:54.360
<v Speaker 9>just because of the uncertainty. But I think the deeper

0:31:54.400 --> 0:31:57.720
<v Speaker 9>and more profound effect is about fear. Right. You saw,

0:31:57.960 --> 0:32:00.840
<v Speaker 9>especially during COVID, you saw the balance of power between

0:32:00.880 --> 0:32:03.760
<v Speaker 9>companies and developers and people who have these skill sets

0:32:04.040 --> 0:32:06.920
<v Speaker 9>swung really hard yes in.

0:32:06.880 --> 0:32:07.640
<v Speaker 8>Favor of labor.

0:32:08.160 --> 0:32:12.000
<v Speaker 9>What this does is give is it creates fear even

0:32:12.040 --> 0:32:14.600
<v Speaker 9>if I'm not being replaced, I might be replaced, which

0:32:14.600 --> 0:32:16.480
<v Speaker 9>makes me a lot more reluctant to ask for a

0:32:16.560 --> 0:32:18.560
<v Speaker 9>raise or say I should have a say in the

0:32:18.600 --> 0:32:21.120
<v Speaker 9>way the companies are governed. And I think a lot

0:32:21.160 --> 0:32:24.320
<v Speaker 9>of CEOs, especially founder CEOs, for whom their company is

0:32:24.360 --> 0:32:26.520
<v Speaker 9>their identity, like, I'm not sure I want to give

0:32:26.560 --> 0:32:27.280
<v Speaker 9>these people a say.

0:32:27.320 --> 0:32:30.840
<v Speaker 2>And how We've only got about a minute left, and

0:32:30.880 --> 0:32:33.680
<v Speaker 2>I'm going to ask the question that I always ask.

0:32:34.040 --> 0:32:35.920
<v Speaker 2>I'm a bit of a skeptic about all this. One

0:32:35.960 --> 0:32:37.880
<v Speaker 2>of the reasons is you talk about all this building,

0:32:37.960 --> 0:32:40.160
<v Speaker 2>all this infrastructure, and a lot of that is being

0:32:40.160 --> 0:32:42.320
<v Speaker 2>funded by credit and a lot of credit and a

0:32:42.320 --> 0:32:45.360
<v Speaker 2>lot of circular credit. And for millennials who've lived through

0:32:45.440 --> 0:32:48.160
<v Speaker 2>multiple crashes, I just feel like this is deja vu

0:32:48.240 --> 0:32:50.600
<v Speaker 2>all over again. What is your take Is this a bubble?

0:32:50.720 --> 0:32:54.080
<v Speaker 2>Is this sustainable? Is it durable? Is it rippling? If

0:32:54.120 --> 0:32:54.640
<v Speaker 2>not popping?

0:32:54.680 --> 0:32:57.640
<v Speaker 9>Where are we You can have a bubble and still

0:32:57.680 --> 0:33:00.040
<v Speaker 9>have a real technology, And that I think is.

0:33:00.040 --> 0:33:01.560
<v Speaker 8>That's sort of to go back to where we were.

0:33:02.080 --> 0:33:03.680
<v Speaker 8>That's the point that people are missing.

0:33:03.800 --> 0:33:04.040
<v Speaker 7>Right.

0:33:04.120 --> 0:33:06.239
<v Speaker 9>You can say these valuations are in You can look

0:33:06.280 --> 0:33:09.040
<v Speaker 9>at I mean SpaceX, which is apparently now an AI company.

0:33:08.720 --> 0:33:09.240
<v Speaker 7>And say.

0:33:10.640 --> 0:33:15.120
<v Speaker 9>You're one point seventy five trillion dollars for these financials

0:33:15.120 --> 0:33:17.640
<v Speaker 9>and say, if that's not a bubble, I don't you know,

0:33:18.000 --> 0:33:19.560
<v Speaker 9>I don't know what is. I don't know what the

0:33:19.600 --> 0:33:20.880
<v Speaker 9>GDP of Mars is going to be.

0:33:21.040 --> 0:33:22.600
<v Speaker 2>No, we've been talking about there's a meme going around

0:33:22.600 --> 0:33:25.680
<v Speaker 2>that Navidia is worth more than all the arable land

0:33:25.720 --> 0:33:28.040
<v Speaker 2>in Australia, right, I mean at some point that just

0:33:28.080 --> 0:33:28.880
<v Speaker 2>seems ridiculous.

0:33:29.000 --> 0:33:30.840
<v Speaker 9>Yeah, and so, but at the same time you can

0:33:30.840 --> 0:33:34.240
<v Speaker 9>say that twenty thirty years from now, this was a bubble,

0:33:34.280 --> 0:33:37.400
<v Speaker 9>but something came out of it that was really a powerful,

0:33:37.560 --> 0:33:40.480
<v Speaker 9>powerful That won't be a lot of consolation if you

0:33:40.560 --> 0:33:41.920
<v Speaker 9>lose your shirt on debth On.

0:33:42.680 --> 0:33:43.720
<v Speaker 8>In the meantime, we.

0:33:43.640 --> 0:33:45.280
<v Speaker 3>Will leave it there. On that note, kind of Thank

0:33:45.280 --> 0:33:46.840
<v Speaker 3>you very much. Great to see you lecture at the

0:33:46.880 --> 0:33:49.320
<v Speaker 3>Old School of Management, of course, columnist from Bloomberg Opinion.

0:33:50.680 --> 0:33:54.360
<v Speaker 4>Stay with us for more on Bloomberg this weekend right

0:33:54.400 --> 0:33:54.880
<v Speaker 4>after this.

0:34:07.440 --> 0:34:10.120
<v Speaker 2>All right, so, right now, the alcohol industry is taking

0:34:10.160 --> 0:34:12.840
<v Speaker 2>a hit, with beer, wine and spirit makers losing a

0:34:12.880 --> 0:34:16.160
<v Speaker 2>combined eight hundred and thirty billion in market share from

0:34:16.200 --> 0:34:17.799
<v Speaker 2>twenty twenty one to twenty twenty five.

0:34:18.000 --> 0:34:20.160
<v Speaker 4>Yeah, and it turns out gen z ers they're actually

0:34:20.160 --> 0:34:22.720
<v Speaker 4>looking to barbells over barstools.

0:34:22.920 --> 0:34:24.359
<v Speaker 2>Get it's okay for.

0:34:24.320 --> 0:34:28.600
<v Speaker 4>Their social for their social outlets. Bloomberg pursuits journalist Sam

0:34:28.640 --> 0:34:30.040
<v Speaker 4>rap Arks. You talked to me about it a few

0:34:30.080 --> 0:34:30.520
<v Speaker 4>days ago.

0:34:32.480 --> 0:34:34.920
<v Speaker 10>It's both the health decision and they're also looking for

0:34:34.960 --> 0:34:37.040
<v Speaker 10>a community and places that they can't find at the

0:34:37.040 --> 0:34:39.600
<v Speaker 10>bar because more and more young people don't drink. So

0:34:39.640 --> 0:34:41.600
<v Speaker 10>it's not just a health choice. It's a health choice

0:34:41.640 --> 0:34:44.120
<v Speaker 10>and a choice to please try and find more friends

0:34:44.480 --> 0:34:47.160
<v Speaker 10>outside the office or the bar.

0:34:47.280 --> 0:34:49.520
<v Speaker 4>Really, all right, I want to dig into that community

0:34:49.560 --> 0:34:51.239
<v Speaker 4>aspect in just a bit, But I have to ask,

0:34:51.239 --> 0:34:53.799
<v Speaker 4>because we're talking gen z and millennials, what about the

0:34:53.840 --> 0:34:56.960
<v Speaker 4>gen xers and boomers? Where do we stand?

0:34:58.239 --> 0:34:58.439
<v Speaker 3>Well?

0:34:58.440 --> 0:35:00.600
<v Speaker 10>The reacharch shows that there's still we're still going to

0:35:00.600 --> 0:35:02.839
<v Speaker 10>the bar, They're still going to dinner. Maybe they're having

0:35:02.920 --> 0:35:06.719
<v Speaker 10>dinner parties or house parties, owning homes. For the gen

0:35:06.800 --> 0:35:09.680
<v Speaker 10>z who went to college perhaps in the pandemic and

0:35:09.719 --> 0:35:11.360
<v Speaker 10>they had to you know, work out from home with

0:35:11.440 --> 0:35:14.240
<v Speaker 10>YouTube videos, they had to go to class on zoom,

0:35:14.320 --> 0:35:16.680
<v Speaker 10>they really want to go work out with other people.

0:35:16.840 --> 0:35:18.680
<v Speaker 10>They're really into finding a community in a place that

0:35:18.680 --> 0:35:21.759
<v Speaker 10>they can't because they maybe started their career remotely, so

0:35:21.800 --> 0:35:24.120
<v Speaker 10>they want to They're spending all this money in classes

0:35:24.120 --> 0:35:26.239
<v Speaker 10>to find a community that they didn't have at their

0:35:26.239 --> 0:35:27.440
<v Speaker 10>graduating college.

0:35:27.880 --> 0:35:31.480
<v Speaker 4>So you talk about community, So is it more you know, socializing,

0:35:31.560 --> 0:35:33.319
<v Speaker 4>Like can they just go out and go on like

0:35:33.360 --> 0:35:35.400
<v Speaker 4>a dating app? But no, they want to go and

0:35:35.600 --> 0:35:38.120
<v Speaker 4>be where the people are. I guess it is what

0:35:38.120 --> 0:35:40.600
<v Speaker 4>you're leading to, Yes, exactly.

0:35:40.920 --> 0:35:43.440
<v Speaker 10>I spoke to a technology consultant who said she met

0:35:43.480 --> 0:35:45.879
<v Speaker 10>her boyfriend at her run club, not at a dating app,

0:35:45.920 --> 0:35:48.000
<v Speaker 10>not at a bar, but at her run club, and

0:35:48.040 --> 0:35:50.200
<v Speaker 10>she made friends at pilates. She goes to the same

0:35:50.239 --> 0:35:53.000
<v Speaker 10>class every day. She compared it to school. She's like

0:35:53.000 --> 0:35:54.840
<v Speaker 10>said it was like sitting next to the same person

0:35:54.960 --> 0:35:57.000
<v Speaker 10>week after a week in a class was like was

0:35:57.000 --> 0:35:58.880
<v Speaker 10>like being in college. And if you have something that

0:35:59.080 --> 0:36:00.920
<v Speaker 10>if you need us something to talk about, there's always

0:36:00.920 --> 0:36:03.919
<v Speaker 10>the class, right, So it's like it needs the icebreaker

0:36:04.360 --> 0:36:06.600
<v Speaker 10>and a sense of familiarity and community that you just

0:36:06.640 --> 0:36:07.839
<v Speaker 10>don't get elsewhere for them.

0:36:08.360 --> 0:36:11.040
<v Speaker 4>And aside from that, they're drawing, they're throwing parties there,

0:36:11.080 --> 0:36:13.359
<v Speaker 4>like bachelorette parties, like this is the thing.

0:36:13.440 --> 0:36:18.040
<v Speaker 10>Now, I didn't have my bachelorette party. Applate me neither,

0:36:18.719 --> 0:36:21.279
<v Speaker 10>I do something else. But yeah, they're telling me that

0:36:21.320 --> 0:36:24.240
<v Speaker 10>they're hiring out the whole studios, spending thousands of dollars

0:36:24.239 --> 0:36:27.920
<v Speaker 10>to rent out the equipment, have a teacher in, have mocktails.

0:36:27.920 --> 0:36:30.080
<v Speaker 10>Instead of going to the bar, they'll bring their girlfriends

0:36:30.120 --> 0:36:31.360
<v Speaker 10>to a plates class, which.

0:36:31.160 --> 0:36:32.359
<v Speaker 7>Is kind of wholesome. I think.

0:36:32.520 --> 0:36:35.120
<v Speaker 4>All right, so you mentioned money. So how much are

0:36:35.160 --> 0:36:37.480
<v Speaker 4>these Gen Z and millennials. How much are they spending

0:36:37.560 --> 0:36:40.439
<v Speaker 4>on memberships, on classes, on things like that.

0:36:41.719 --> 0:36:42.279
<v Speaker 7>I spoke to.

0:36:42.239 --> 0:36:44.799
<v Speaker 10>One person whose budget was eight hundred bucks a month

0:36:44.840 --> 0:36:46.120
<v Speaker 10>on fitness, which is which.

0:36:45.960 --> 0:36:47.000
<v Speaker 7>Is quite a lot of money.

0:36:47.520 --> 0:36:52.000
<v Speaker 10>But they're out spending proportionally millennials and Gen X and

0:36:52.040 --> 0:36:55.759
<v Speaker 10>boomers proportionally to their income on fitness and spending more

0:36:55.800 --> 0:36:58.000
<v Speaker 10>than last year in a mental survey as well.

0:36:58.040 --> 0:36:58.920
<v Speaker 7>So it's growing.

0:36:59.400 --> 0:37:01.839
<v Speaker 10>The trends thing to be NonStop. But part of it

0:37:01.880 --> 0:37:04.200
<v Speaker 10>is that they can say that they feel better afterwards.

0:37:04.440 --> 0:37:07.239
<v Speaker 10>Unlike going to a bar. There's no hangovers, there's no

0:37:07.320 --> 0:37:09.520
<v Speaker 10>wearable like an or ring or whoop telling you your

0:37:09.600 --> 0:37:11.879
<v Speaker 10>readiness score is lower the next day. They just feel

0:37:11.920 --> 0:37:13.160
<v Speaker 10>better after a gym class.

0:37:13.840 --> 0:37:15.960
<v Speaker 4>Okay, it's good to feel that way. You don't want

0:37:15.960 --> 0:37:18.560
<v Speaker 4>to have the hangover all the time. But they're doing

0:37:18.560 --> 0:37:20.520
<v Speaker 4>all this, and they're spending all this money when you

0:37:20.560 --> 0:37:23.160
<v Speaker 4>know rents are higher, when they're dealing with student debt, Like,

0:37:23.200 --> 0:37:24.480
<v Speaker 4>how are they making this work?

0:37:26.120 --> 0:37:28.440
<v Speaker 10>I think it's a sort of like zero sum game

0:37:28.480 --> 0:37:30.320
<v Speaker 10>in their heads, as if maybe I can never afford

0:37:30.360 --> 0:37:33.600
<v Speaker 10>a house, but I can put maybe a two or

0:37:33.600 --> 0:37:36.239
<v Speaker 10>two hundred dollars membership on a credit card. Right, So

0:37:36.400 --> 0:37:39.160
<v Speaker 10>if they don't see long term prospects, there's the risk

0:37:39.239 --> 0:37:41.480
<v Speaker 10>of ai for their future, they might as well do

0:37:41.560 --> 0:37:43.640
<v Speaker 10>something that makes them feel good in the short term.

0:37:43.719 --> 0:37:45.719
<v Speaker 10>And I think Jim spending is a big part of that.

0:37:46.160 --> 0:37:48.200
<v Speaker 4>It is now in the article you mentioned one thing

0:37:48.200 --> 0:37:49.680
<v Speaker 4>that I want to point out. You talk about how

0:37:49.719 --> 0:37:53.239
<v Speaker 4>wellness has become a full fledged identity. Now I know

0:37:53.440 --> 0:37:56.600
<v Speaker 4>my social media feed, it's filled with you know, people

0:37:56.640 --> 0:37:59.320
<v Speaker 4>working out, it's you know what am I meal prepping

0:37:59.360 --> 0:38:01.680
<v Speaker 4>for the week, like all these different things. I mean,

0:38:01.920 --> 0:38:04.279
<v Speaker 4>does social media have a lot to do with it too,

0:38:04.320 --> 0:38:07.360
<v Speaker 4>about more people going or these younger generations going to

0:38:07.400 --> 0:38:07.960
<v Speaker 4>the gym.

0:38:09.000 --> 0:38:11.480
<v Speaker 10>Yeah, I do think there is a performative aspect with

0:38:11.560 --> 0:38:14.960
<v Speaker 10>like the hashtag plotis on TikTok, the clean girl asthetic

0:38:15.040 --> 0:38:17.560
<v Speaker 10>or people wearying and their matching two hundred dollars plot

0:38:17.760 --> 0:38:20.560
<v Speaker 10>sets and wanting to look the part. I think that

0:38:20.680 --> 0:38:22.480
<v Speaker 10>is a really big part. I spoke to a content

0:38:22.520 --> 0:38:25.319
<v Speaker 10>creator in Atlanta who's twenty three, and she documents all

0:38:25.360 --> 0:38:27.560
<v Speaker 10>of her gym sessions. She's made friends at the gym,

0:38:27.760 --> 0:38:31.040
<v Speaker 10>but she's also made it her business online like her

0:38:31.080 --> 0:38:34.759
<v Speaker 10>content creation arm. So I think the lifestyle aspect and

0:38:34.800 --> 0:38:36.959
<v Speaker 10>the way that social media has really driven that wanting

0:38:37.000 --> 0:38:39.120
<v Speaker 10>to look a certain way and perform a certain way

0:38:39.160 --> 0:38:40.240
<v Speaker 10>online is huge.

0:38:40.520 --> 0:38:43.040
<v Speaker 2>Okay, go back to me the clean girl. What is

0:38:43.080 --> 0:38:44.200
<v Speaker 2>it explain that one?

0:38:44.280 --> 0:38:48.600
<v Speaker 10>To me, the clean girl look is is like ath

0:38:48.680 --> 0:38:50.120
<v Speaker 10>leisure and we're wearing less.

0:38:49.920 --> 0:38:54.800
<v Speaker 7>Obviously, Okay, yeah, sort of a.

0:38:53.600 --> 0:38:56.280
<v Speaker 10>As opposed to the millennial I would say, like Kesha aesthetic,

0:38:56.360 --> 0:38:58.239
<v Speaker 10>if that makes sense to you. It's a different one.

0:38:58.280 --> 0:39:02.440
<v Speaker 10>Wanting to look wanting to look, yeah, more like wellness

0:39:02.440 --> 0:39:04.640
<v Speaker 10>oriented as if instead of you just got back from

0:39:04.680 --> 0:39:04.920
<v Speaker 10>the bar.

0:39:05.320 --> 0:39:06.000
<v Speaker 2>Okay, got it?

0:39:06.160 --> 0:39:08.920
<v Speaker 4>And last question, does do GLP ones Does that have

0:39:09.000 --> 0:39:11.120
<v Speaker 4>anything to do with this as well? Does that play

0:39:11.160 --> 0:39:11.720
<v Speaker 4>into the picture?

0:39:13.200 --> 0:39:14.920
<v Speaker 10>I think it does. That doesn't come up so much

0:39:14.920 --> 0:39:17.560
<v Speaker 10>in the research, but people who are on JLP ones

0:39:17.560 --> 0:39:20.480
<v Speaker 10>are told to strength train as part of that regimen,

0:39:20.719 --> 0:39:22.920
<v Speaker 10>So I think that could be as more younger people

0:39:22.960 --> 0:39:25.640
<v Speaker 10>get on JLP one this it becomes more mainstream and

0:39:25.719 --> 0:39:27.719
<v Speaker 10>wanting the strains trained to keep up that as part

0:39:27.719 --> 0:39:29.920
<v Speaker 10>of the medicine. I think that'll be a really big

0:39:30.160 --> 0:39:32.160
<v Speaker 10>ongoing part of this trend to keep it going into

0:39:32.160 --> 0:39:32.640
<v Speaker 10>the future.

0:39:33.280 --> 0:39:36.000
<v Speaker 4>All Right, I work out in my basement now, I

0:39:36.000 --> 0:39:38.719
<v Speaker 4>don't even go to the gym. So this seems like, yeah,

0:39:38.800 --> 0:39:43.080
<v Speaker 4>it's a big social thing, but are people still going

0:39:43.080 --> 0:39:43.520
<v Speaker 4>to the bars?

0:39:43.520 --> 0:39:45.080
<v Speaker 2>Like how are bars and restaurants doing?

0:39:46.480 --> 0:39:49.200
<v Speaker 10>Bars and restaurants are making menus that cope with people

0:39:49.200 --> 0:39:52.600
<v Speaker 10>who are on jlp ones some more small plates, smaller portions,

0:39:53.000 --> 0:39:57.080
<v Speaker 10>mocktail options. I've seen a lot of more creative mocktails

0:39:57.120 --> 0:39:59.240
<v Speaker 10>now for people who aren't drinking. So I think there,

0:39:59.280 --> 0:40:01.840
<v Speaker 10>of course is a space for bars and restaurants. I

0:40:01.960 --> 0:40:04.319
<v Speaker 10>for one, enjoy a nice bar dinner out. But I

0:40:04.320 --> 0:40:07.840
<v Speaker 10>think that hospitality, especially like hotel lias and business owners

0:40:08.000 --> 0:40:09.600
<v Speaker 10>need to find a way to make a community in

0:40:09.640 --> 0:40:11.640
<v Speaker 10>the way that the gyms are killing it at to

0:40:11.719 --> 0:40:14.359
<v Speaker 10>really get really get that gen z spend.

0:40:14.040 --> 0:40:16.240
<v Speaker 4>At the moment, I got it, I'll meet chat Happy

0:40:16.239 --> 0:40:19.000
<v Speaker 4>Hour Sarah Sarah Rapp join your.

0:40:18.920 --> 0:40:19.600
<v Speaker 8>Song right.

0:40:22.160 --> 0:40:24.160
<v Speaker 2>Totally Bloomberg Pursuits.

0:40:24.160 --> 0:40:28.880
<v Speaker 4>Thank you so much, So David Christina, if I decided

0:40:28.880 --> 0:40:31.319
<v Speaker 4>that we're going to go, yes, yeah, are you going

0:40:31.400 --> 0:40:31.759
<v Speaker 4>to join it?

0:40:31.920 --> 0:40:34.040
<v Speaker 3>I know I'll have a cocktail and skip the PILATEUS plus,

0:40:34.200 --> 0:40:37.160
<v Speaker 3>but I hope you guys have a great time. Whenever

0:40:37.200 --> 0:40:39.319
<v Speaker 3>that transpires. AM eager to hear about it.

0:40:39.320 --> 0:40:41.719
<v Speaker 2>It'll be great. You don't know, I come and hang

0:40:41.719 --> 0:40:43.600
<v Speaker 2>out and do some you know, hundreds with us.

0:40:44.200 --> 0:40:47.560
<v Speaker 3>No, thanks for.

0:40:47.600 --> 0:40:50.800
<v Speaker 2>Joining us on today's Bloomberg This Weekend podcast. Don't forget

0:40:50.800 --> 0:40:53.040
<v Speaker 2>to tune in live for the show every Saturday and

0:40:53.120 --> 0:40:55.359
<v Speaker 2>Sunday morning, starting at seven am Eastern, We're

0:40:55.400 --> 0:40:58.600
<v Speaker 3>On Bloomberg Television, Radio and the Bloomberg Business App, bringing

0:40:58.640 --> 0:41:01.839
<v Speaker 3>you unique takes and in depth the interviews on news, politics,

0:41:01.920 --> 0:41:05.919
<v Speaker 3>lifestyle and culture.