1 00:00:02,520 --> 00:00:07,040 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,800 --> 00:00:11,440 Speaker 2: Former House majority leader Eric Canter joins us now currently 3 00:00:11,480 --> 00:00:13,840 Speaker 2: of Molus, and I want to start on the economy 4 00:00:13,840 --> 00:00:15,600 Speaker 2: and all of these deals that we see going on. 5 00:00:15,640 --> 00:00:18,840 Speaker 2: I mean, is this just an incredibly robust deals pipeline 6 00:00:18,840 --> 00:00:22,280 Speaker 2: on the heels of benign economy and wide open capital markets. 7 00:00:22,680 --> 00:00:25,239 Speaker 3: Yeah, I think you're right. I mean, I know, Molas. 8 00:00:25,280 --> 00:00:27,400 Speaker 3: You know, our bankers are really busy as we come 9 00:00:27,440 --> 00:00:29,920 Speaker 3: into the very end of the year running through the tape, 10 00:00:30,000 --> 00:00:32,280 Speaker 3: and so there's a lot of dialogue. We're in the 11 00:00:32,320 --> 00:00:36,479 Speaker 3: business of advising on transactions. Transactions are a tool for 12 00:00:36,600 --> 00:00:40,120 Speaker 3: companies to accelerate growth, to figure out how to better position, 13 00:00:40,159 --> 00:00:43,040 Speaker 3: to gain efficiencies, and as you say, there are accommodative 14 00:00:43,080 --> 00:00:46,480 Speaker 3: capital markets right now too, and so we are seeing 15 00:00:46,680 --> 00:00:49,800 Speaker 3: just a lot of dialogue, a lot of activity, and 16 00:00:49,840 --> 00:00:52,239 Speaker 3: I think a general optimism as we come to the 17 00:00:52,600 --> 00:00:53,000 Speaker 3: new year. 18 00:00:53,159 --> 00:00:55,200 Speaker 2: What's interesting is in markets right now you're seeing a 19 00:00:55,200 --> 00:00:58,040 Speaker 2: bit of skepticism pushback broadcom perfect example of that. We 20 00:00:58,040 --> 00:01:00,960 Speaker 2: also saw that with Oracle, investors are saying you need 21 00:01:00,960 --> 00:01:02,600 Speaker 2: to pay up a little bit more. As vice chair 22 00:01:02,640 --> 00:01:04,720 Speaker 2: of Molus, so you're seeing that pushback in any way 23 00:01:04,720 --> 00:01:07,120 Speaker 2: shape or form, or deals just coming out of the 24 00:01:07,160 --> 00:01:10,319 Speaker 2: woodwork in ways that keep even your associates really busy, 25 00:01:10,400 --> 00:01:10,560 Speaker 2: you know. 26 00:01:10,600 --> 00:01:12,160 Speaker 3: I think if you look at the if you look 27 00:01:12,200 --> 00:01:15,400 Speaker 3: at the strategic sort of universe, I mean, they are 28 00:01:15,760 --> 00:01:17,960 Speaker 3: and have always had a list of where they're heading 29 00:01:17,959 --> 00:01:19,920 Speaker 3: in terms of targets and the kind of deals they 30 00:01:19,920 --> 00:01:22,320 Speaker 3: want to do. And certainly in the sponsor world, there 31 00:01:22,319 --> 00:01:24,240 Speaker 3: are other sort of forces at work. You know, the 32 00:01:24,319 --> 00:01:28,279 Speaker 3: need to recycle capital, you know, assets that may need 33 00:01:28,920 --> 00:01:31,240 Speaker 3: to be to go into a continuation fund them. There 34 00:01:31,240 --> 00:01:36,920 Speaker 3: are all types of different tools available for clients, investors' sponsors, strategics, 35 00:01:37,360 --> 00:01:41,400 Speaker 3: and as you say, I think overall the framework in 36 00:01:41,480 --> 00:01:44,960 Speaker 3: the environment is more constructive now, certainly Washington, when people 37 00:01:45,000 --> 00:01:47,840 Speaker 3: look to the regulatory impact, we have sort of come 38 00:01:47,840 --> 00:01:51,840 Speaker 3: out from under this very very negative regulatory outlook that 39 00:01:51,880 --> 00:01:53,240 Speaker 3: we had in the prior administration. 40 00:01:53,320 --> 00:01:55,240 Speaker 1: Talk a bit more about that. So when you're talking 41 00:01:55,240 --> 00:01:58,480 Speaker 1: to executives about that regulatory environment, how would you describe it? 42 00:01:58,520 --> 00:02:00,800 Speaker 1: I mean, we see some of these agencies where there's 43 00:02:00,840 --> 00:02:04,160 Speaker 1: not a full panoply of commissioners. For instance, we heard 44 00:02:04,160 --> 00:02:06,000 Speaker 1: it from the Treasury sectory. There's be some new corporate 45 00:02:06,040 --> 00:02:08,680 Speaker 1: tax policies coming here into effect in the coming weeks. 46 00:02:08,880 --> 00:02:10,560 Speaker 1: How much of it is still in cod or clear 47 00:02:10,600 --> 00:02:13,280 Speaker 1: for you at this point of where it's headed regulatorily. 48 00:02:12,760 --> 00:02:16,519 Speaker 3: You know, I think with this president and this administration, 49 00:02:16,600 --> 00:02:19,560 Speaker 3: and I think there is just sort of an acceptance 50 00:02:19,560 --> 00:02:22,840 Speaker 3: that you're never really going to know for certain anything 51 00:02:22,960 --> 00:02:26,000 Speaker 3: because of the way that you know, the rapidity that 52 00:02:26,160 --> 00:02:29,400 Speaker 3: things are about in Washington, the way that President Trump 53 00:02:29,480 --> 00:02:33,239 Speaker 3: sort of approaches, you know, the power he's got in 54 00:02:33,320 --> 00:02:36,560 Speaker 3: the position very unique. But I think on the whole, 55 00:02:36,600 --> 00:02:40,760 Speaker 3: it's a much more constructive regulatory environment, and you just 56 00:02:40,880 --> 00:02:43,960 Speaker 3: don't have this overhang that you had in the prior 57 00:02:44,040 --> 00:02:47,680 Speaker 3: Biden administration, where you know, there was really an anti 58 00:02:47,800 --> 00:02:50,919 Speaker 3: business sentiment and if you just remember that we'd select 59 00:02:51,520 --> 00:02:54,440 Speaker 3: eons ago. But with the likes of Lena Kahn and 60 00:02:54,520 --> 00:02:56,920 Speaker 3: Jonathan Canner, they were sitting in these spots in the 61 00:02:56,960 --> 00:03:01,600 Speaker 3: head of the anti trust regulators and they really definitionally said, 62 00:03:01,680 --> 00:03:05,760 Speaker 3: if you are bigger, that is bad, and therefore we're 63 00:03:05,880 --> 00:03:08,239 Speaker 3: not really inclined to allow you to do it. Whereas 64 00:03:08,280 --> 00:03:12,160 Speaker 3: this administration, it's not like it was under the Bush administration, 65 00:03:12,320 --> 00:03:14,840 Speaker 3: but it's certainly much more constructive than they like to 66 00:03:14,880 --> 00:03:15,440 Speaker 3: do deals. 67 00:03:15,480 --> 00:03:17,680 Speaker 1: As you've watched that parade of executives going through the 68 00:03:17,680 --> 00:03:19,760 Speaker 1: Oval Office, some of whom are giving up equity stakes 69 00:03:19,800 --> 00:03:22,760 Speaker 1: to the US government. What are you thinking, as a 70 00:03:22,800 --> 00:03:25,920 Speaker 1: lifelong Republican this kind of new new breed of Trump 71 00:03:25,960 --> 00:03:29,960 Speaker 1: Republicanism that involves again, it's not derogism, but it's sort 72 00:03:29,960 --> 00:03:32,000 Speaker 1: of like the state is having a heavier hand in 73 00:03:32,040 --> 00:03:32,680 Speaker 1: the way that these. 74 00:03:32,520 --> 00:03:35,920 Speaker 3: Pals are not. I know, David, I still remain a 75 00:03:36,000 --> 00:03:40,200 Speaker 3: limited government, free market Republican and conservative. So it's obviously 76 00:03:40,240 --> 00:03:42,600 Speaker 3: something very new to me to see that the government 77 00:03:42,640 --> 00:03:45,160 Speaker 3: wants to take a stake in a business and or 78 00:03:45,200 --> 00:03:47,680 Speaker 3: a toll if it's an export. That is something that 79 00:03:47,840 --> 00:03:50,320 Speaker 3: is obviously and I think for the majority of the 80 00:03:50,360 --> 00:03:53,480 Speaker 3: members that are in the Congress now, it is something 81 00:03:53,520 --> 00:03:55,960 Speaker 3: that's very new. But I do think it's much more 82 00:03:55,960 --> 00:03:58,120 Speaker 3: in keeping with what President Trump is about and what 83 00:03:58,240 --> 00:04:01,440 Speaker 3: his career has been about about deal making. And I 84 00:04:01,480 --> 00:04:03,800 Speaker 3: think if you look at sort of the Intel situation 85 00:04:04,000 --> 00:04:07,559 Speaker 3: and what happened there, it was more of a response 86 00:04:07,640 --> 00:04:10,880 Speaker 3: to the disdain that the White House had for the 87 00:04:10,960 --> 00:04:15,280 Speaker 3: Chip Sack and just giving away moneies and instead say, hey, 88 00:04:15,280 --> 00:04:17,359 Speaker 3: we need to do something for the taxpayers. Now, where 89 00:04:17,400 --> 00:04:20,600 Speaker 3: I have an issue is the governance rights. You know 90 00:04:20,680 --> 00:04:22,880 Speaker 3: that is you know, it's not as if the federal 91 00:04:22,960 --> 00:04:25,560 Speaker 3: government has not stepped in before. I mean, you and 92 00:04:25,600 --> 00:04:29,120 Speaker 3: I were down there when the Great Financial Crisis happened 93 00:04:29,160 --> 00:04:33,520 Speaker 3: and a lot of bailouts. You look at the airline industry, 94 00:04:33,560 --> 00:04:35,560 Speaker 3: you look at the GSCs. I mean, there's a lot 95 00:04:35,600 --> 00:04:40,440 Speaker 3: of history. But the difference this Before there was always 96 00:04:40,480 --> 00:04:42,520 Speaker 3: sort of a path and a known path to an 97 00:04:42,520 --> 00:04:44,520 Speaker 3: excess and now not so clear. 98 00:04:44,600 --> 00:04:47,520 Speaker 2: Well, this is sort of the concern is that right now, 99 00:04:47,600 --> 00:04:51,000 Speaker 2: if you're putting an empersistent deal making, deregulation and potentially 100 00:04:51,160 --> 00:04:53,240 Speaker 2: job owning the FED to cut rates more aggressively at 101 00:04:53,240 --> 00:04:56,200 Speaker 2: a time that the economy is still chugging along, at 102 00:04:56,200 --> 00:04:57,560 Speaker 2: what point are you setting up the risk of that 103 00:04:57,640 --> 00:04:59,640 Speaker 2: kind of scenario once again in twenty twenty seven or 104 00:04:59,680 --> 00:05:00,440 Speaker 2: twenty eight. 105 00:05:01,520 --> 00:05:05,039 Speaker 3: Well, listen, I think this president has been very consistent 106 00:05:05,160 --> 00:05:09,080 Speaker 3: his message of growth and he wants growth, and that 107 00:05:09,279 --> 00:05:11,240 Speaker 3: is the way, and that is where sort of the 108 00:05:12,680 --> 00:05:16,080 Speaker 3: more traditional sort of conservative Republican can come along with 109 00:05:16,160 --> 00:05:19,160 Speaker 3: the agenda, because it is we've always been about real 110 00:05:19,160 --> 00:05:21,680 Speaker 3: growth comes from the private sector. And if you look 111 00:05:21,680 --> 00:05:25,280 Speaker 3: at where the administration has been taking stakes, it's really 112 00:05:25,320 --> 00:05:28,240 Speaker 3: in these industries that are critical to the national security. 113 00:05:29,240 --> 00:05:32,159 Speaker 3: It is about AI related, it is about the rare 114 00:05:32,240 --> 00:05:35,520 Speaker 3: earth's minerals. It is all about how do we go 115 00:05:35,600 --> 00:05:38,919 Speaker 3: and continue to take the lead in these critical sectors 116 00:05:39,000 --> 00:05:41,039 Speaker 3: Visa China and other bad actors. 117 00:05:41,160 --> 00:05:43,080 Speaker 2: How do you think this administration is done with respect 118 00:05:43,120 --> 00:05:46,160 Speaker 2: to messaging around affordability? This is something that has been 119 00:05:46,400 --> 00:05:48,880 Speaker 2: dogging the administration quite a bit. Now we're talking about 120 00:05:48,880 --> 00:05:52,080 Speaker 2: dolls and Christmas presents, but there's this issue of people 121 00:05:52,120 --> 00:05:54,640 Speaker 2: aren't feeling great even though the economy is chugging around. 122 00:05:55,360 --> 00:05:56,880 Speaker 2: What do you think, What do you think the Congress 123 00:05:56,880 --> 00:05:58,440 Speaker 2: should be doing? How do you think the president should 124 00:05:58,440 --> 00:05:59,320 Speaker 2: be messaging this? Well? 125 00:05:59,320 --> 00:06:02,719 Speaker 3: You know, it's interesting after the off year elections, one 126 00:06:02,800 --> 00:06:05,960 Speaker 3: of which was in my state of Virginia, and the 127 00:06:06,040 --> 00:06:10,320 Speaker 3: party didn't farewell, President was fairly nimble and ten days 128 00:06:10,400 --> 00:06:13,520 Speaker 3: later turning around and taking the steps he did in 129 00:06:14,839 --> 00:06:18,360 Speaker 3: lifting the tariffs on two hundred food items and which 130 00:06:18,520 --> 00:06:21,719 Speaker 3: directly impact people when they go into the grocery store 131 00:06:21,800 --> 00:06:25,440 Speaker 3: to look to prepare for the holiday meals, including not 132 00:06:25,800 --> 00:06:28,080 Speaker 3: just the things that we don't grow here, but like 133 00:06:28,160 --> 00:06:32,480 Speaker 3: beef right in Brazilian beef, And there's a real inflationary 134 00:06:32,680 --> 00:06:35,120 Speaker 3: pressure in the beef industry in this country. And I 135 00:06:35,160 --> 00:06:38,920 Speaker 3: think the administration took the steps necessary to provide the relief. 136 00:06:38,960 --> 00:06:40,799 Speaker 3: So I think you're going to see a lot more 137 00:06:41,120 --> 00:06:43,839 Speaker 3: accommodation in terms of that as we head into the 138 00:06:43,880 --> 00:06:47,239 Speaker 3: new year. And look, the President's also this is something 139 00:06:47,320 --> 00:06:50,040 Speaker 3: also very novel, David, back to your original point about 140 00:06:50,080 --> 00:06:52,920 Speaker 3: the kinds of things that administration's doing. He's talking about 141 00:06:52,960 --> 00:06:55,640 Speaker 3: a dividend from the tariffs. I mean, but that is 142 00:06:55,680 --> 00:07:00,159 Speaker 3: something directly related to the issue, Lisa, that you bring up, 143 00:07:00,800 --> 00:07:04,200 Speaker 3: and that is how is a presence supposed to bring 144 00:07:04,240 --> 00:07:06,080 Speaker 3: down prices when we're in a free market. 145 00:07:06,240 --> 00:07:07,440 Speaker 1: Don't have a whole lot of time left, but I 146 00:07:07,480 --> 00:07:09,920 Speaker 1: want to ask you about the prospects of the fiscal 147 00:07:09,920 --> 00:07:12,040 Speaker 1: stimulus in the new year from the tax bill. I 148 00:07:12,040 --> 00:07:13,800 Speaker 1: mean that the President talks about so much, maybe he 149 00:07:13,800 --> 00:07:16,000 Speaker 1: hasn't been focused enough sort of on the potential benefits 150 00:07:16,040 --> 00:07:18,400 Speaker 1: of that for ordinary Americans. How do you see that's 151 00:07:18,440 --> 00:07:19,480 Speaker 1: laying out in the year head. 152 00:07:19,320 --> 00:07:22,800 Speaker 3: Look on what's going on with AI and with cap 153 00:07:22,800 --> 00:07:27,160 Speaker 3: ax necessary to bring about this infrastructure, not just in 154 00:07:27,200 --> 00:07:29,480 Speaker 3: the data center piece and all that, but on the 155 00:07:29,640 --> 00:07:33,239 Speaker 3: power end of things. I mean, there is a tremendous 156 00:07:33,280 --> 00:07:36,800 Speaker 3: tailwind we're going to experience from the ability to completely 157 00:07:36,880 --> 00:07:41,680 Speaker 3: you know, write off the expense upfront. So you know, 158 00:07:41,760 --> 00:07:44,000 Speaker 3: I do think, and I think most economists will say, 159 00:07:44,080 --> 00:07:47,200 Speaker 3: there will be an uptick in terms of what that 160 00:07:47,280 --> 00:07:50,920 Speaker 3: will do to increase people's willingness to go and put capital. 161 00:07:50,600 --> 00:07:54,360 Speaker 2: To work by share. Eric Canter of Molus and Company, 162 00:07:54,440 --> 00:07:57,040 Speaker 2: also the former House majority leader, thank you so much 163 00:07:57,040 --> 00:07:57,960 Speaker 2: for being with us this morning. 164 00:07:58,360 --> 00:07:58,560 Speaker 3: Hollow