1 00:00:05,800 --> 00:00:08,360 Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm Pim 2 00:00:08,400 --> 00:00:11,440 Speaker 1: Fox along with my co host Lisa Bramowitz. Each day 3 00:00:11,480 --> 00:00:15,000 Speaker 1: we bring you the most important, noteworthy, and useful interviews 4 00:00:15,040 --> 00:00:17,520 Speaker 1: for you and your money, whether you're at the grocery 5 00:00:17,560 --> 00:00:20,560 Speaker 1: store or the trading floor. Find the Bloomberg p m 6 00:00:20,680 --> 00:00:33,159 Speaker 1: L Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot Com. 7 00:00:33,159 --> 00:00:37,040 Speaker 1: All Eyes on Washington, d C. On a number of fronts, 8 00:00:37,200 --> 00:00:39,400 Speaker 1: I want to start with the latest House Speaker Paul 9 00:00:39,520 --> 00:00:42,159 Speaker 1: Ryan has announced that he will not seek re election 10 00:00:42,360 --> 00:00:46,400 Speaker 1: in November. We are expecting to hear comments from him. 11 00:00:46,440 --> 00:00:49,479 Speaker 1: He's going to make a statement and we will be 12 00:00:49,520 --> 00:00:52,680 Speaker 1: clearing that live as well as the question and answer 13 00:00:52,760 --> 00:00:55,920 Speaker 1: session after that. Here to give us a sense of 14 00:00:56,000 --> 00:01:00,760 Speaker 1: what the context is around Paul Ryan's uh decision not 15 00:01:00,800 --> 00:01:05,240 Speaker 1: to seek reelection is Marty Shanker, chief content officer for Bloomberg. 16 00:01:05,319 --> 00:01:09,000 Speaker 1: Marty put this in a perspective to us, why now, Well, 17 00:01:09,040 --> 00:01:12,520 Speaker 1: it's interesting timing. About a month ago there was a 18 00:01:12,560 --> 00:01:15,760 Speaker 1: Politico magazine piece which suggested that Ryan was not going 19 00:01:15,800 --> 00:01:18,520 Speaker 1: to stand for re election, which the people around him 20 00:01:18,640 --> 00:01:23,960 Speaker 1: vigorously denied. And so now a month later it's true. Um, 21 00:01:24,000 --> 00:01:26,880 Speaker 1: I think Paul Ryan has basically decided that this is 22 00:01:26,920 --> 00:01:29,160 Speaker 1: a I mean, you never wanted the speaker job to 23 00:01:29,200 --> 00:01:32,080 Speaker 1: begin with. You sort of took it out of uh 24 00:01:32,240 --> 00:01:35,680 Speaker 1: dedication to the Republican Party. And it's a very really 25 00:01:35,720 --> 00:01:38,800 Speaker 1: tough job. He's by a lot of measures, he's done 26 00:01:38,840 --> 00:01:41,640 Speaker 1: a really good job, especially in fundraising. A lot of 27 00:01:41,640 --> 00:01:44,640 Speaker 1: people were concerned about his ability to raise funds for 28 00:01:44,640 --> 00:01:49,920 Speaker 1: Republicans in the context of his predecessor Bayner, but he's 29 00:01:49,920 --> 00:01:53,560 Speaker 1: actually outraised him by quite a bit. Okay, I just 30 00:01:53,600 --> 00:01:55,920 Speaker 1: want to push back a little bit because a lot 31 00:01:55,920 --> 00:01:59,920 Speaker 1: of people are suggesting that Paul Ryan is not going 32 00:02:00,080 --> 00:02:04,720 Speaker 1: to seek reelection because his chances of winning are increasingly slim, 33 00:02:05,000 --> 00:02:08,160 Speaker 1: and that this sort of is a harbinger moment for 34 00:02:08,200 --> 00:02:11,480 Speaker 1: the Republican Party and sort of seeks uh sort of 35 00:02:11,480 --> 00:02:15,560 Speaker 1: sets the stage for a Democratic win in the midterms. Well, 36 00:02:15,600 --> 00:02:20,680 Speaker 1: one of the UH inside Washington prognosticators right after Ryan's 37 00:02:20,680 --> 00:02:24,720 Speaker 1: announcement this morning, moved the district Paul Ryan's district in 38 00:02:24,760 --> 00:02:30,520 Speaker 1: Wisconsin too likely Republican from solid Republican, So at least 39 00:02:30,520 --> 00:02:34,200 Speaker 1: in that view, UH, he he may have had a 40 00:02:34,280 --> 00:02:36,560 Speaker 1: more difficult time, but he will still expected to be 41 00:02:36,600 --> 00:02:40,160 Speaker 1: re elected, and now his departure makes it less likely 42 00:02:40,240 --> 00:02:44,440 Speaker 1: that's going to remain a Republican seat. So you know, yeah, 43 00:02:44,520 --> 00:02:47,360 Speaker 1: he may have he may have had a more difficult time, 44 00:02:47,400 --> 00:02:50,919 Speaker 1: but he won by I think a seventy percent margin 45 00:02:51,000 --> 00:02:53,080 Speaker 1: last time around, and I think it was pretty safe 46 00:02:53,120 --> 00:02:56,080 Speaker 1: seat if he wanted to take to keep it. Hey, Marty, 47 00:02:56,120 --> 00:02:57,720 Speaker 1: I want to pick up on something having to do 48 00:02:57,800 --> 00:03:01,120 Speaker 1: with the Republican Party. And you mentioned, you know, his 49 00:03:01,240 --> 00:03:05,520 Speaker 1: success at fundraising for the Republican Party. What kind of 50 00:03:05,600 --> 00:03:11,560 Speaker 1: Republican party does he leave behind for his successor to manage, well, 51 00:03:11,919 --> 00:03:15,640 Speaker 1: like it or not, it's a Trump Republican Party. And 52 00:03:15,880 --> 00:03:19,800 Speaker 1: as you know, I mean, many people both in the 53 00:03:19,840 --> 00:03:23,120 Speaker 1: moderate wing of the Republican Party and Democrats certainly have 54 00:03:23,200 --> 00:03:26,520 Speaker 1: been very critical the leadership of the Republicans for not 55 00:03:26,600 --> 00:03:29,560 Speaker 1: being more vocal in their opposition to some of the 56 00:03:29,600 --> 00:03:33,840 Speaker 1: policies that Donald Trump is pursuing. Um. That said, they're 57 00:03:33,880 --> 00:03:38,560 Speaker 1: inexcellably tied to this president, and UM it becomes even 58 00:03:38,600 --> 00:03:41,960 Speaker 1: more interesting in the context of the Mueller investigation. That's 59 00:03:41,960 --> 00:03:43,960 Speaker 1: exactly where I wanted to go with this. I mean, 60 00:03:44,480 --> 00:03:49,400 Speaker 1: one speculation is that how speaker Ryan is stepping aside, 61 00:03:49,480 --> 00:03:52,160 Speaker 1: or at least announcing his plans to do so, in 62 00:03:52,320 --> 00:03:55,840 Speaker 1: order to take a harder stance on President Trump. Do 63 00:03:55,880 --> 00:03:58,840 Speaker 1: you think that there's any merit to that? No? Okay, great, 64 00:03:58,880 --> 00:04:02,000 Speaker 1: and asked an answer, Um, no, but I really don't 65 00:04:02,040 --> 00:04:06,600 Speaker 1: think I you know, Uh, Paul Ryan has said that 66 00:04:07,040 --> 00:04:10,000 Speaker 1: the Special Prosecutor Mueller should be kept in the job 67 00:04:10,320 --> 00:04:14,520 Speaker 1: and complete his his inquiry. Um. He hasn't had a 68 00:04:14,680 --> 00:04:19,280 Speaker 1: full throated criticism of Donald Trump's comments on it. Uh. Probably, 69 00:04:20,040 --> 00:04:22,400 Speaker 1: you know, Democrats would like him to be more vocal. 70 00:04:22,480 --> 00:04:25,480 Speaker 1: But I do not think he's making this decision so 71 00:04:25,520 --> 00:04:27,880 Speaker 1: that he's now free to talk about it. I don't 72 00:04:27,920 --> 00:04:31,000 Speaker 1: think you'll be seeing any real profiles and courage out 73 00:04:31,000 --> 00:04:35,320 Speaker 1: of this guy. Um. That said, this has coming at 74 00:04:35,320 --> 00:04:38,159 Speaker 1: an interesting point. It's an inflection point in the Mueller 75 00:04:38,240 --> 00:04:42,880 Speaker 1: investigation and certainly in President Trump's anger toward Mueller as 76 00:04:42,920 --> 00:04:46,800 Speaker 1: well as uh Rod Rosenstein. And I'm just wondering, you know, 77 00:04:47,480 --> 00:04:51,200 Speaker 1: does this sort of have implications for the GOP's willingness 78 00:04:51,240 --> 00:04:56,280 Speaker 1: to push forward or criticize, or say censure President Trump 79 00:04:56,320 --> 00:05:00,240 Speaker 1: for any consequences that might emerge from firing Rosenstein. Well 80 00:05:00,000 --> 00:05:03,400 Speaker 1: as a very practical matter of the fact that he's 81 00:05:03,400 --> 00:05:07,000 Speaker 1: not running for re election means that if Donald Trump 82 00:05:07,040 --> 00:05:12,560 Speaker 1: were to fire Rosenstein, Mueller, Sessions, etcetera. It would if 83 00:05:12,640 --> 00:05:17,080 Speaker 1: it did, and it would create a constitutional crisis. Paul 84 00:05:17,160 --> 00:05:20,200 Speaker 1: Ryan could just basically throw away any political implications to 85 00:05:20,240 --> 00:05:24,520 Speaker 1: a stance on that move. Uh So it would as 86 00:05:24,520 --> 00:05:28,120 Speaker 1: a practical matter, free him from many political considerations. Then 87 00:05:28,120 --> 00:05:32,839 Speaker 1: it would just become essentially a moral, conscious decision on 88 00:05:32,960 --> 00:05:36,440 Speaker 1: his part of what standy takes um in in the 89 00:05:36,520 --> 00:05:41,400 Speaker 1: constitutional crisis that wouldn't ensue from that. We're speaking with 90 00:05:41,600 --> 00:05:44,840 Speaker 1: Marty Schenker, he is our chief content officer for Bloomberg 91 00:05:44,920 --> 00:05:48,320 Speaker 1: as we await comments and a statement from Paul Ryan, 92 00:05:48,360 --> 00:05:52,040 Speaker 1: current Speaker of the House, representative of the Wisconsin First 93 00:05:52,400 --> 00:05:55,240 Speaker 1: and he will be announcing that he will not seek 94 00:05:55,240 --> 00:05:58,800 Speaker 1: a re election for that position. We're also going to 95 00:05:58,880 --> 00:06:01,800 Speaker 1: be bringing you live cover to Mark Zuckerberg, chief executive 96 00:06:02,000 --> 00:06:06,200 Speaker 1: of Facebook, second day of his two day testimony before Congress. 97 00:06:06,560 --> 00:06:08,560 Speaker 1: Um and Marty, I'm sorry to keep harping on the 98 00:06:08,600 --> 00:06:10,680 Speaker 1: Republican Party because that you know, they're the ones who 99 00:06:10,720 --> 00:06:15,440 Speaker 1: are going to be left after Paul Ryan exits in January, UM, 100 00:06:15,560 --> 00:06:18,880 Speaker 1: the rating for the president has actually gone up, right. 101 00:06:18,920 --> 00:06:21,720 Speaker 1: I mean we're talking about his favorable rating has climbed 102 00:06:21,760 --> 00:06:28,000 Speaker 1: eight percentage points since before the election. Uh, in terms 103 00:06:28,040 --> 00:06:32,320 Speaker 1: of Republicans, and I'm wondering what positions we can expect 104 00:06:32,360 --> 00:06:37,320 Speaker 1: the Republicans to take as a result that the Speaker 105 00:06:37,440 --> 00:06:39,240 Speaker 1: Ryan is no longer going to be there to put 106 00:06:39,240 --> 00:06:42,040 Speaker 1: on the brakes or even add any kind of institutional 107 00:06:42,160 --> 00:06:47,240 Speaker 1: or traditional Republican UH perspective. Well, you still have Mitch 108 00:06:47,320 --> 00:06:50,680 Speaker 1: McConnell as a Senate leader, and he in some ways 109 00:06:50,720 --> 00:06:54,560 Speaker 1: speaks for the Republican Party. And in Congress in general, 110 00:06:55,440 --> 00:06:58,320 Speaker 1: you have McCarthy and Scalise who are still the you know, 111 00:06:58,400 --> 00:07:01,000 Speaker 1: the whip and the number two person in the House 112 00:07:01,080 --> 00:07:04,679 Speaker 1: who has been maybe going to take Speaker Ryan's position 113 00:07:04,800 --> 00:07:09,400 Speaker 1: if the working theory is that McCarthy will try to 114 00:07:09,440 --> 00:07:13,880 Speaker 1: do that. Actually he sought that position before Ryan, uh 115 00:07:13,920 --> 00:07:17,000 Speaker 1: and could not garner enough votes, and then that's when 116 00:07:17,000 --> 00:07:19,720 Speaker 1: they turned to Paul Ryan as a unifying force for 117 00:07:19,760 --> 00:07:24,040 Speaker 1: the Republican Party. So it's probably he's the front runner, 118 00:07:24,080 --> 00:07:27,160 Speaker 1: but he's by no means a short thing. And there 119 00:07:27,240 --> 00:07:31,360 Speaker 1: are very fervent Trump supporters in the House who may 120 00:07:31,560 --> 00:07:37,000 Speaker 1: think that it's time for a truly pro Trump Republican 121 00:07:37,160 --> 00:07:40,440 Speaker 1: to take the leadership in the House. Don't forget the 122 00:07:40,480 --> 00:07:44,000 Speaker 1: mid terms are in November, well before Paul Ryan leeds office. 123 00:07:44,040 --> 00:07:48,520 Speaker 1: So um, it'll be a completely different context when the 124 00:07:48,640 --> 00:07:51,240 Speaker 1: decision it will have to be made, whether in fact 125 00:07:51,320 --> 00:07:54,520 Speaker 1: it will be majority leader or minority leader of the 126 00:07:54,520 --> 00:07:57,640 Speaker 1: House when that time comes. All right, So we're right 127 00:07:57,680 --> 00:08:01,320 Speaker 1: now completely focused on Paul Ry. In about a half 128 00:08:01,360 --> 00:08:05,560 Speaker 1: an hour ago, we were completely focused on the relationship 129 00:08:05,920 --> 00:08:09,680 Speaker 1: between the US and Russia over Syria and some kind 130 00:08:09,680 --> 00:08:13,160 Speaker 1: of impending missile attack that President Trump is promising via 131 00:08:13,240 --> 00:08:17,200 Speaker 1: Twitter on Syria in response to the chemical attacks. Where 132 00:08:17,200 --> 00:08:20,080 Speaker 1: are we with that? Has everybody just simply forgotten about that? 133 00:08:20,240 --> 00:08:23,760 Speaker 1: Has this sort of turmoil complicate matters if at all? Well? 134 00:08:23,800 --> 00:08:25,960 Speaker 1: I don't. I don't know that the political elements of 135 00:08:26,000 --> 00:08:28,800 Speaker 1: Paul Ryan's decision not to run for re election has 136 00:08:28,840 --> 00:08:32,240 Speaker 1: any impact at all on Syria, But the markets certainly 137 00:08:32,240 --> 00:08:37,040 Speaker 1: haven't forgotten about it. Um, it's interesting that the markets 138 00:08:37,080 --> 00:08:43,120 Speaker 1: haven't actually gone cataclysmically panicked over this. There's obviously a 139 00:08:43,160 --> 00:08:46,960 Speaker 1: negative reaction, but it's not hug Why is that surprising 140 00:08:46,960 --> 00:08:49,000 Speaker 1: to you. Well, I mean, you know, when you have 141 00:08:49,080 --> 00:08:52,840 Speaker 1: a president of the United States via Twitter essentially saying 142 00:08:53,000 --> 00:08:55,760 Speaker 1: we're going to take military action in an area of 143 00:08:55,760 --> 00:08:59,280 Speaker 1: the world where the Russians and the Iranians personnel who 144 00:08:59,320 --> 00:09:03,199 Speaker 1: have warned a ends doing that, it's could be very unsettled. 145 00:09:03,360 --> 00:09:06,240 Speaker 1: You'd wonder why the SMP down only four tens of 146 00:09:06,240 --> 00:09:09,120 Speaker 1: a percent, why it's down only ten points, and why 147 00:09:09,200 --> 00:09:12,840 Speaker 1: oil is only up less than less. My theory is 148 00:09:12,880 --> 00:09:15,720 Speaker 1: that the markets are looking at this in some ways 149 00:09:15,800 --> 00:09:19,080 Speaker 1: like the tariffs issue, that yes, there's a lot of 150 00:09:19,120 --> 00:09:22,160 Speaker 1: bluster and a lot of strong talk, but ultimately that 151 00:09:22,280 --> 00:09:25,320 Speaker 1: he might walk this back. My own personal theory is 152 00:09:25,360 --> 00:09:30,120 Speaker 1: that there are there could very likely be a conversation 153 00:09:30,200 --> 00:09:32,880 Speaker 1: between Donald Trump and Vlader air Putin. They spoke very 154 00:09:32,920 --> 00:09:36,840 Speaker 1: recently in the last couple of weeks that might actually 155 00:09:36,960 --> 00:09:40,200 Speaker 1: bring bring us back from the brink of military action. 156 00:09:40,679 --> 00:09:44,040 Speaker 1: I mean, that would be consistent with the way Donald 157 00:09:44,080 --> 00:09:47,760 Speaker 1: Trump likes to operate. Threaten, gets concessions, and back off. 158 00:09:48,120 --> 00:09:50,200 Speaker 1: You know, there's sort of an interesting twist here with 159 00:09:50,320 --> 00:09:52,760 Speaker 1: the United Kingdom coming out and saying that they're not 160 00:09:52,880 --> 00:09:56,920 Speaker 1: sure that the Syrian government did wage a chemical attack 161 00:09:57,160 --> 00:09:59,520 Speaker 1: at all, and that they're not going to cooperate with 162 00:09:59,559 --> 00:10:02,360 Speaker 1: the u US until they have better evidence. How does 163 00:10:02,400 --> 00:10:04,839 Speaker 1: that factor into that, Well, that's pretty interesting coming from 164 00:10:04,840 --> 00:10:07,640 Speaker 1: the UK, who are not even sure that the nerve 165 00:10:07,720 --> 00:10:15,080 Speaker 1: agent that was used to attack the UK espionage victim 166 00:10:15,200 --> 00:10:19,679 Speaker 1: uh was really from Russian origin. So, you know, I 167 00:10:20,120 --> 00:10:23,320 Speaker 1: just think that's political rhetoric. But it might just be 168 00:10:23,360 --> 00:10:25,600 Speaker 1: political rhetoric. But that means that the US does not 169 00:10:25,760 --> 00:10:28,360 Speaker 1: have the UK on its side, and any kind of 170 00:10:28,400 --> 00:10:31,120 Speaker 1: altercation in Syria, even as France says that they're going 171 00:10:31,160 --> 00:10:34,040 Speaker 1: to go alongside the US, that from a strategic standpoint 172 00:10:34,080 --> 00:10:38,280 Speaker 1: is significant. Yes, it makes it much less politically acceptable. 173 00:10:38,320 --> 00:10:41,040 Speaker 1: I guess in a global context for Donald Trump to 174 00:10:41,080 --> 00:10:45,000 Speaker 1: take union ladder reaction in Syria, Um, I think the 175 00:10:45,120 --> 00:10:49,640 Speaker 1: real danger is the Russian response. Right, If the US 176 00:10:50,000 --> 00:10:53,960 Speaker 1: was to take military action and in some way involves 177 00:10:54,200 --> 00:10:57,679 Speaker 1: Russian troops that are on the ground, it could escalate 178 00:10:57,679 --> 00:10:59,560 Speaker 1: in a way that no one really wants but no 179 00:10:59,600 --> 00:11:04,760 Speaker 1: one can control. So it's a very dangerous situation in Syria. 180 00:11:04,880 --> 00:11:08,439 Speaker 1: And if Donald Trump decides to go forward without allies, 181 00:11:08,880 --> 00:11:11,920 Speaker 1: it becomes even more dangerous. Well, in the danger also 182 00:11:11,960 --> 00:11:15,240 Speaker 1: becomes as you mentioned, that Iran has proxies if indeed 183 00:11:15,280 --> 00:11:19,840 Speaker 1: it does have actual military forces in Syria, and that 184 00:11:20,440 --> 00:11:25,000 Speaker 1: Moscow and Vladimir putin visiting with the head of Iran 185 00:11:25,240 --> 00:11:30,400 Speaker 1: in Turkey just last week, I believe in Turkey and 186 00:11:30,880 --> 00:11:35,320 Speaker 1: ally of the United States. Yes, it's very complicated, um 187 00:11:35,640 --> 00:11:38,079 Speaker 1: as we all know. And there's also a report from 188 00:11:38,120 --> 00:11:40,920 Speaker 1: ap earlier this morning that a high level delegation of 189 00:11:41,000 --> 00:11:46,040 Speaker 1: Russian officials have arrived in Syria. Now is that a 190 00:11:46,240 --> 00:11:51,640 Speaker 1: kind of shield situation or it's suggestive of the Russians 191 00:11:51,640 --> 00:11:54,319 Speaker 1: are really doubling down on their commitment to a side, 192 00:11:54,480 --> 00:11:56,319 Speaker 1: you know. And and just to sort of add a 193 00:11:56,320 --> 00:11:59,400 Speaker 1: complication to this whole backdrop are the sanctions that the 194 00:11:59,520 --> 00:12:03,000 Speaker 1: US has placed on Russia, Russia calling it uh ageing 195 00:12:03,400 --> 00:12:06,840 Speaker 1: economic war on them. And you are seeing the assets 196 00:12:06,880 --> 00:12:10,320 Speaker 1: in Russia plunge, the ruble continuing to lose value versus 197 00:12:10,400 --> 00:12:13,960 Speaker 1: the dollar. Uh. You saw you know, bond yield spike up, 198 00:12:14,040 --> 00:12:17,600 Speaker 1: and they canceled a bond auction because they didn't want 199 00:12:17,600 --> 00:12:20,280 Speaker 1: to try to raise money in this environment. Not just wondering, 200 00:12:20,280 --> 00:12:23,160 Speaker 1: I mean how much does that sort of up the 201 00:12:23,240 --> 00:12:28,760 Speaker 1: anti here and sort of raise the possibility of military conflict. Well, 202 00:12:29,120 --> 00:12:31,640 Speaker 1: you know, I do think that when in the context 203 00:12:31,679 --> 00:12:36,120 Speaker 1: of the world stage, the way the US can truly 204 00:12:36,280 --> 00:12:40,040 Speaker 1: pressure Russia is not through foreign diplomacy, not through the UN, 205 00:12:40,440 --> 00:12:46,160 Speaker 1: but on economic sanctions. Um Vladimir Putin enjoys great popularity 206 00:12:46,240 --> 00:12:50,800 Speaker 1: within the among the Russian people, but a weakening ruble, 207 00:12:50,880 --> 00:12:54,040 Speaker 1: if it's over an extended period of time, will cause 208 00:12:54,120 --> 00:12:57,720 Speaker 1: real economic pain, and that is the way to get 209 00:12:58,040 --> 00:13:02,800 Speaker 1: Russians change their behavior. Most foreign policy experts say sanctions 210 00:13:02,880 --> 00:13:06,640 Speaker 1: are the really only effective way of changing their baby 211 00:13:07,080 --> 00:13:09,520 Speaker 1: and taking a look at, for example, of the my 212 00:13:09,640 --> 00:13:13,760 Speaker 1: Sex ten, which is the stock exchange in Russia actually 213 00:13:14,040 --> 00:13:18,000 Speaker 1: higher today, up about nine tenths of a percent adjusted, 214 00:13:18,920 --> 00:13:21,199 Speaker 1: and indeed, right, yeah, trying to get your money out, 215 00:13:21,240 --> 00:13:37,400 Speaker 1: that's a different, different story. Let's bring in Billy House, 216 00:13:37,400 --> 00:13:41,160 Speaker 1: a congressional reporter for Bloomberg News. Billy, I want to 217 00:13:41,200 --> 00:13:44,280 Speaker 1: just touch on that first. Did that strike you as 218 00:13:44,320 --> 00:13:46,160 Speaker 1: well as sort of the most noteworthy thing he said? 219 00:13:47,200 --> 00:13:50,160 Speaker 1: That was very noteworthy, especially when you have some of 220 00:13:50,200 --> 00:13:53,440 Speaker 1: his own House Republican colleagues, led by Devin Junior as 221 00:13:53,480 --> 00:13:56,320 Speaker 1: the House Intelligence Chairman, working right now to try to 222 00:13:56,360 --> 00:14:02,360 Speaker 1: hold both Uh rosen Stain and Sessions in contempt. So, uh, 223 00:14:02,600 --> 00:14:04,440 Speaker 1: Paul Ryan can say that, and he said he's had 224 00:14:04,480 --> 00:14:07,520 Speaker 1: assurances that Mueller would not be attacked or fired by 225 00:14:07,559 --> 00:14:10,679 Speaker 1: the White House. Let's let's see what happens. Though he's 226 00:14:10,679 --> 00:14:14,719 Speaker 1: a lame duck. Now, what does this? What? What does 227 00:14:14,800 --> 00:14:18,120 Speaker 1: this due to the race for his position? And given 228 00:14:18,160 --> 00:14:20,880 Speaker 1: that we've got the mid terms between now and when 229 00:14:20,880 --> 00:14:24,440 Speaker 1: the next Congress takes take session, that's a good question. 230 00:14:24,520 --> 00:14:27,920 Speaker 1: I mean, right now it's been all whispers between the 231 00:14:28,000 --> 00:14:31,000 Speaker 1: number two House Republican and Kevin McCarthy and the number 232 00:14:31,040 --> 00:14:35,320 Speaker 1: three Steve Scalise. But with Paul Ryan leaving this early 233 00:14:35,480 --> 00:14:38,320 Speaker 1: are announcing he will be leaving this early on. I 234 00:14:38,360 --> 00:14:41,680 Speaker 1: think only Tip O'Neill, ever, UH was the last one 235 00:14:41,720 --> 00:14:44,320 Speaker 1: to not be forced out or to go out in 236 00:14:44,400 --> 00:14:47,960 Speaker 1: some scandal um. It leaves a lot of other potential 237 00:14:48,720 --> 00:14:52,120 Speaker 1: candidates time to start seeing what kind of chips they 238 00:14:52,120 --> 00:14:55,560 Speaker 1: could collect or call in, and so perhaps names like 239 00:14:55,640 --> 00:15:00,000 Speaker 1: House Freedom coccas Chairman Mark Meadows, a friend of Trump's 240 00:15:00,400 --> 00:15:03,240 Speaker 1: or even Jim Jordan's or others who may be more 241 00:15:03,280 --> 00:15:06,880 Speaker 1: moderate might have time to build some sort of coalitions. 242 00:15:06,920 --> 00:15:08,840 Speaker 1: I think a lot of people on Wall Street are 243 00:15:08,840 --> 00:15:12,040 Speaker 1: trying to figure out, Okay, well, how does this affect policy? 244 00:15:12,240 --> 00:15:17,400 Speaker 1: How will this directly feed into implications for any cutbacks 245 00:15:17,440 --> 00:15:21,600 Speaker 1: in social programs to reduce the deficit, or any ability 246 00:15:21,640 --> 00:15:24,520 Speaker 1: to pass infrastructure planning? Can do you have any insight 247 00:15:24,640 --> 00:15:28,240 Speaker 1: into that? I think, first of all, that was gonna 248 00:15:28,280 --> 00:15:31,880 Speaker 1: all be very difficult anyway in an election year. Uh, 249 00:15:32,760 --> 00:15:36,200 Speaker 1: the Republicans have lost special elections dating back to two 250 00:15:36,240 --> 00:15:40,520 Speaker 1: thousand eleven on just stating they wanted to vouchize Medicare 251 00:15:40,560 --> 00:15:42,600 Speaker 1: and that sort of thing. But now that we have 252 00:15:42,680 --> 00:15:46,320 Speaker 1: a lame duck speaker and he may think there is 253 00:15:46,320 --> 00:15:48,120 Speaker 1: a lot of good will that would help him get 254 00:15:48,160 --> 00:15:52,440 Speaker 1: that those policies through, I'm more inclined to believe that 255 00:15:52,520 --> 00:15:55,560 Speaker 1: he's now a lame lame duck and none of that 256 00:15:55,600 --> 00:16:00,640 Speaker 1: will happen. So who emerges the leader during this period 257 00:16:00,680 --> 00:16:03,360 Speaker 1: between the now and the election of a new one. 258 00:16:04,240 --> 00:16:09,240 Speaker 1: I think we have uh multiheaded monster for the next 259 00:16:09,320 --> 00:16:13,120 Speaker 1: few months where nobody's actually leading. All right, Billy House, 260 00:16:13,160 --> 00:16:14,800 Speaker 1: thank you so much for joining us, and good luck 261 00:16:14,840 --> 00:16:17,760 Speaker 1: with all the future coverage as we continue to monitor 262 00:16:18,000 --> 00:16:22,160 Speaker 1: who is going to take over house speaker Paul Ryan's position, 263 00:16:22,520 --> 00:16:26,200 Speaker 1: as well as the implications for policy and the ongoing 264 00:16:26,320 --> 00:16:43,960 Speaker 1: Moler investigation. Thank you here just give us a sense 265 00:16:44,080 --> 00:16:46,280 Speaker 1: of what we should be focused on from what we've 266 00:16:46,320 --> 00:16:48,720 Speaker 1: heard so far. As Paul Sweeney, US director of Research 267 00:16:48,960 --> 00:16:53,800 Speaker 1: and senior Media and Internet analyst for Bloomberg Intelligence, Paul, how, 268 00:16:53,880 --> 00:16:56,880 Speaker 1: how is Mark Zuckerberg fired on day two? I think 269 00:16:56,880 --> 00:16:59,560 Speaker 1: he's generally doing a pretty good job here. You know, 270 00:16:59,640 --> 00:17:01,160 Speaker 1: over at past a couple of days, the stock is 271 00:17:01,200 --> 00:17:03,960 Speaker 1: actually traded fairly well, So I think, uh, he hasn't 272 00:17:04,000 --> 00:17:06,320 Speaker 1: done any damage here. And um, you know, I think 273 00:17:06,359 --> 00:17:10,200 Speaker 1: the big challenge for Mark here over these two days 274 00:17:10,280 --> 00:17:13,240 Speaker 1: is too you know. Number one, you know clearly acknowledge 275 00:17:13,320 --> 00:17:16,120 Speaker 1: that Facebook now has a handle on the full scope 276 00:17:16,200 --> 00:17:18,879 Speaker 1: of what the issues are here as it relates to data. 277 00:17:18,920 --> 00:17:21,879 Speaker 1: And I think you know, that realization didn't really occur 278 00:17:21,960 --> 00:17:23,720 Speaker 1: really into the last couple of months, I think in 279 00:17:23,840 --> 00:17:26,959 Speaker 1: terms of the scope of their responsibility here. Um, So 280 00:17:27,359 --> 00:17:29,000 Speaker 1: I think he needs to get that across. I think 281 00:17:29,000 --> 00:17:31,320 Speaker 1: he is getting that issue across. And then the second issue, 282 00:17:31,520 --> 00:17:36,439 Speaker 1: maybe more importantly is that Facebook is equipped um to 283 00:17:36,640 --> 00:17:40,320 Speaker 1: deal with these issues. Um, And you know. Most importantly 284 00:17:40,400 --> 00:17:44,240 Speaker 1: that they do not need to uh incur regulatory oversight 285 00:17:44,359 --> 00:17:46,960 Speaker 1: by Congress or any other body. I think that's one 286 00:17:47,000 --> 00:17:50,399 Speaker 1: of the big issues that Facebook and you know, tech 287 00:17:50,600 --> 00:17:53,200 Speaker 1: and social media and the internet, um, you know, trying 288 00:17:53,240 --> 00:17:56,159 Speaker 1: to forcedall as long as possible. Paul Swiney, this shares 289 00:17:56,160 --> 00:17:58,600 Speaker 1: a Facebook. They're down about six tenths of a percent. 290 00:17:58,720 --> 00:18:01,359 Speaker 1: What a reference in particular report that was put together 291 00:18:01,400 --> 00:18:04,000 Speaker 1: by Deloitte, and they worked with Facebook in order to 292 00:18:04,040 --> 00:18:06,400 Speaker 1: do this. This goes back to two thousand and fourteen. 293 00:18:06,520 --> 00:18:11,280 Speaker 1: But for reference, uh, they said that Facebook has enabled 294 00:18:11,400 --> 00:18:16,280 Speaker 1: more than two hundred billion dollars of economic activity and 295 00:18:16,440 --> 00:18:20,480 Speaker 1: four and a half million jobs around the world. Can 296 00:18:20,520 --> 00:18:24,439 Speaker 1: you like in Facebook to the Internet itself? And that 297 00:18:25,480 --> 00:18:29,359 Speaker 1: perhaps that is why this is such a interesting and 298 00:18:29,400 --> 00:18:35,359 Speaker 1: focused piece of information, because so many businesses live on 299 00:18:35,400 --> 00:18:39,520 Speaker 1: Facebook as if Facebook were the Internet. Yeah, it's um, 300 00:18:39,560 --> 00:18:43,399 Speaker 1: you know again, Facebook has over two billion users on 301 00:18:43,440 --> 00:18:46,840 Speaker 1: a monthly basis on a global scale there obviously everywhere, 302 00:18:46,960 --> 00:18:50,880 Speaker 1: with the notable exception of China, uh, you know, and 303 00:18:51,000 --> 00:18:53,720 Speaker 1: so they are truly you know, touching you know, so 304 00:18:53,800 --> 00:18:56,400 Speaker 1: many households, so many lives in so many different ways 305 00:18:56,400 --> 00:19:00,560 Speaker 1: that the social media hum of which Facebook is a 306 00:19:00,600 --> 00:19:03,680 Speaker 1: larger social media platform, has really become one of the 307 00:19:03,760 --> 00:19:07,400 Speaker 1: main um utilities of the Internet at large. It used 308 00:19:07,400 --> 00:19:10,520 Speaker 1: to be simply, uh, you know, search was probably the 309 00:19:10,640 --> 00:19:14,440 Speaker 1: utility that people utilize the most on the Internet. Um, 310 00:19:14,480 --> 00:19:17,080 Speaker 1: but it's really I think social has become you know, 311 00:19:17,160 --> 00:19:19,399 Speaker 1: kind of the key aspect. And so I guess I 312 00:19:19,440 --> 00:19:21,600 Speaker 1: was getting out here with the economic effect is it's 313 00:19:21,640 --> 00:19:24,760 Speaker 1: not just sharing you know, family photos and details of 314 00:19:24,800 --> 00:19:28,200 Speaker 1: what you did on your vacation. It is perhaps two 315 00:19:28,359 --> 00:19:32,000 Speaker 1: people who do not know each other enjoying, let's say, 316 00:19:32,000 --> 00:19:36,200 Speaker 1: playing bridge online and through an app that they join 317 00:19:36,600 --> 00:19:40,879 Speaker 1: through Facebook. They then are able to play bridge with 318 00:19:40,920 --> 00:19:46,600 Speaker 1: each other. That becomes an economic relationship for not only Facebook, 319 00:19:47,080 --> 00:19:50,879 Speaker 1: but also for the companies that are building those specific apps. 320 00:19:50,920 --> 00:19:55,720 Speaker 1: And Mark Zuckerberg reference Zinga for example, the online game creator. 321 00:19:55,800 --> 00:19:58,280 Speaker 1: Is that an accurate description? It is? It is an 322 00:19:58,320 --> 00:20:01,359 Speaker 1: accurate description, and and so you know, and it's something 323 00:20:01,400 --> 00:20:04,159 Speaker 1: that you know, I'm not sure. Um. A lot of 324 00:20:04,200 --> 00:20:06,719 Speaker 1: the regulators, a lot of the politicians, the folks asking 325 00:20:06,760 --> 00:20:09,560 Speaker 1: the congressman, asking the questions over the past few days, 326 00:20:09,560 --> 00:20:12,159 Speaker 1: a couple of days, you know, fully appreciate that, and 327 00:20:12,200 --> 00:20:14,959 Speaker 1: I think that is one of the reasons that whenever 328 00:20:15,040 --> 00:20:19,200 Speaker 1: there's discussion about, uh, you know, a regulation of the 329 00:20:19,240 --> 00:20:22,399 Speaker 1: Internet coming from Congress, uh, that is what people that 330 00:20:22,480 --> 00:20:24,920 Speaker 1: is one of the main pushbacks, which is the Internet 331 00:20:24,920 --> 00:20:27,840 Speaker 1: and social media have created so much opportunity for people 332 00:20:27,880 --> 00:20:31,280 Speaker 1: and so many jobs and so much uh economic growth 333 00:20:31,320 --> 00:20:33,359 Speaker 1: that you know, this is the last thing this industry 334 00:20:33,440 --> 00:20:36,520 Speaker 1: needs is regulatory oversight. But now what's happened in the 335 00:20:36,600 --> 00:20:40,000 Speaker 1: last couple of months is just the privacy issue has 336 00:20:40,080 --> 00:20:42,720 Speaker 1: really reared. It's it's u ugly head here. And we've 337 00:20:42,760 --> 00:20:45,680 Speaker 1: seen privacy regulations out of the EU over the years, 338 00:20:45,960 --> 00:20:48,160 Speaker 1: and they're getting stricter and stricter all the time, affecting 339 00:20:48,200 --> 00:20:51,399 Speaker 1: companies like Facebook, and Facebook wants to forestall anything like 340 00:20:51,440 --> 00:20:53,840 Speaker 1: that happening here in the States. All right, thank you 341 00:20:53,920 --> 00:20:57,199 Speaker 1: very much of Paul as Sweeney. Paul Sweeney our director 342 00:20:57,240 --> 00:21:16,199 Speaker 1: of North American research for Bloomberg Intelligence. So we've been 343 00:21:16,240 --> 00:21:19,560 Speaker 1: listening to Mark Zuckerberg testified before the House Energy and 344 00:21:19,680 --> 00:21:23,400 Speaker 1: Commerce Committee. He was answering questions from A. Doris Matsui, 345 00:21:23,800 --> 00:21:29,919 Speaker 1: the congresswoman of Democratic congresswoman from California representing Sacramento, and 346 00:21:30,560 --> 00:21:33,480 Speaker 1: one of the issues had to do obviously with the 347 00:21:33,600 --> 00:21:37,040 Speaker 1: privacy controls that are afforded to people who actually use 348 00:21:37,119 --> 00:21:41,240 Speaker 1: a Facebook and the ability of commercial organizations, whether they 349 00:21:41,240 --> 00:21:46,639 Speaker 1: be businesses or indeed political organizations, to actually access that 350 00:21:46,720 --> 00:21:50,280 Speaker 1: information and then target information that would be directed to 351 00:21:51,200 --> 00:21:55,199 Speaker 1: to specific interests that they might have. I want to 352 00:21:55,200 --> 00:21:58,760 Speaker 1: bring in our own Shia ovid Are Bloomberg Technology Gadfly 353 00:21:59,040 --> 00:22:02,560 Speaker 1: columnists to give us a little bit more detail about 354 00:22:03,040 --> 00:22:06,240 Speaker 1: the congressional hearings, and as Shira, I just want to 355 00:22:06,280 --> 00:22:10,080 Speaker 1: note that I believe that there is a quote from 356 00:22:10,240 --> 00:22:17,240 Speaker 1: uh from one of the gad fly commists meaning you yes, 357 00:22:17,640 --> 00:22:21,920 Speaker 1: that says Facebook will keep failing users trust as long 358 00:22:22,080 --> 00:22:27,439 Speaker 1: as its business is based on unrestrained hoover ng of 359 00:22:27,680 --> 00:22:34,159 Speaker 1: as much user data as possible. UM does anything that 360 00:22:34,280 --> 00:22:40,160 Speaker 1: Mark Zuckerberg said that you heard contradict that. I don't 361 00:22:40,280 --> 00:22:45,199 Speaker 1: think so, and in part because he rather gracefully avoided 362 00:22:45,359 --> 00:22:50,080 Speaker 1: directly tackling that question. So what Mark now been saying 363 00:22:50,080 --> 00:22:55,320 Speaker 1: for two days is essentially, UM, people own all the 364 00:22:55,440 --> 00:22:57,760 Speaker 1: data that they put out there on Facebook, and they 365 00:22:57,800 --> 00:23:02,240 Speaker 1: have complete control over where and how it's shared, which 366 00:23:02,280 --> 00:23:05,840 Speaker 1: is not really true. So, look, the business model of 367 00:23:05,880 --> 00:23:12,560 Speaker 1: Facebook is based on um collecting information from what people 368 00:23:13,000 --> 00:23:17,040 Speaker 1: voluntarily put on their Facebook pages and things that people 369 00:23:17,040 --> 00:23:20,679 Speaker 1: are not really aware that Facebook is also getting from you, 370 00:23:20,720 --> 00:23:24,600 Speaker 1: including um, almost every web page you visit, the apps 371 00:23:24,600 --> 00:23:27,720 Speaker 1: on your phone, the location as you carry your phone 372 00:23:27,720 --> 00:23:31,560 Speaker 1: with you across the world, UM, information on what you 373 00:23:31,600 --> 00:23:35,199 Speaker 1: purchase in stores that advertisers are taking with them to 374 00:23:35,320 --> 00:23:38,320 Speaker 1: target ads. And this it also includes. And this was 375 00:23:38,400 --> 00:23:42,919 Speaker 1: interesting because Doris Matt suey Uh, the congressman from California, 376 00:23:42,960 --> 00:23:47,480 Speaker 1: mentioned what happens afterwards. In other words, you may own 377 00:23:47,520 --> 00:23:51,320 Speaker 1: your data, but once your data is used by a 378 00:23:51,400 --> 00:23:55,240 Speaker 1: commercial interest, you really don't have any It's it's a canard, 379 00:23:55,320 --> 00:23:58,920 Speaker 1: this issue about ad ownership. Nothing that has happened to 380 00:23:58,960 --> 00:24:01,280 Speaker 1: Facebook in the last two days or three weeks of 381 00:24:01,680 --> 00:24:08,320 Speaker 1: controversy has changed its ability and willingness to collect large 382 00:24:08,320 --> 00:24:13,479 Speaker 1: amounts of activity and information on Americans and you and 383 00:24:13,600 --> 00:24:15,760 Speaker 1: people around the world and use that to target auts. 384 00:24:15,840 --> 00:24:18,159 Speaker 1: And that's the central problem with Facebook is that it's 385 00:24:18,200 --> 00:24:22,240 Speaker 1: business model is dependent on its ability to have relatively 386 00:24:22,520 --> 00:24:25,800 Speaker 1: unrestrained data collection. Okay, so on a scale from one 387 00:24:25,840 --> 00:24:28,479 Speaker 1: to ten, ten being best and one being worst. How 388 00:24:28,480 --> 00:24:32,840 Speaker 1: would you grade yesterday's performance of Mark Zuckerberg and I'm sorry, 389 00:24:32,880 --> 00:24:34,960 Speaker 1: ten is the best? Yeah, ten's the best. I would 390 00:24:35,000 --> 00:24:38,359 Speaker 1: say it was about an eight. What about today? It's 391 00:24:38,400 --> 00:24:42,399 Speaker 1: it's less good today. It seems like a the questions 392 00:24:42,400 --> 00:24:45,200 Speaker 1: are more partisan and pointed today and they're a little 393 00:24:45,280 --> 00:24:50,080 Speaker 1: less polite. Um. And Zuckerberg looks visibly tired, which is 394 00:24:50,119 --> 00:24:53,640 Speaker 1: probably reasonable given the day he had six hours. Yeah, 395 00:24:53,640 --> 00:24:56,439 Speaker 1: he took the break, now, you know that's sorry, Right, 396 00:24:56,480 --> 00:25:00,360 Speaker 1: we waved off the break yesterday. Today he took it. Um. 397 00:25:00,520 --> 00:25:02,240 Speaker 1: You know. One thing that I'm struck by is as 398 00:25:02,280 --> 00:25:05,000 Speaker 1: this is going on, and some might call political theater, 399 00:25:05,040 --> 00:25:07,080 Speaker 1: others might call it, you know, an informational session, whatever 400 00:25:07,119 --> 00:25:09,040 Speaker 1: you want to however you want to characterize it. With 401 00:25:09,040 --> 00:25:12,920 Speaker 1: the tip of both headlines, Cross saying that the European 402 00:25:13,000 --> 00:25:16,520 Speaker 1: Union privacy head said that we are at a start 403 00:25:16,600 --> 00:25:20,640 Speaker 1: of a new data privacy era and that European Union 404 00:25:20,640 --> 00:25:24,080 Speaker 1: watchdogs are creating a social media working group and data 405 00:25:24,200 --> 00:25:27,199 Speaker 1: rights in some ways, Is this the side show to 406 00:25:27,280 --> 00:25:30,720 Speaker 1: what's really happening, which is probably really led by Europe 407 00:25:30,800 --> 00:25:33,159 Speaker 1: right now. Look, I think it's been true for a 408 00:25:33,160 --> 00:25:36,480 Speaker 1: long time and continues to be true that European regulators 409 00:25:36,520 --> 00:25:41,119 Speaker 1: and European consumers two are much more skeptical about data 410 00:25:41,200 --> 00:25:45,600 Speaker 1: collection of Internet companies, including Facebook and Google and others, 411 00:25:45,960 --> 00:25:49,199 Speaker 1: and the European regulators have taken the lead on all this. 412 00:25:49,400 --> 00:25:55,280 Speaker 1: They are very informed. Um, they are very harsh critics, 413 00:25:55,720 --> 00:25:57,720 Speaker 1: and yeah, I do think they are leading the world 414 00:25:57,760 --> 00:26:01,919 Speaker 1: and leading their colleagues in Congress, who today UM asked 415 00:26:01,960 --> 00:26:06,120 Speaker 1: several times about this new European data protection rule and 416 00:26:06,160 --> 00:26:09,200 Speaker 1: whether and how Facebook would implement that in the United States, 417 00:26:09,240 --> 00:26:11,240 Speaker 1: which I think was interesting that they're looking to Europe 418 00:26:11,280 --> 00:26:14,479 Speaker 1: as kind of a model. Can we just maybe just go, 419 00:26:15,600 --> 00:26:18,040 Speaker 1: you know, go one step deeper on that, because having 420 00:26:18,080 --> 00:26:22,160 Speaker 1: said that, is that because the governments in Europe already 421 00:26:22,200 --> 00:26:25,240 Speaker 1: have all of the data they want and more on 422 00:26:25,440 --> 00:26:32,360 Speaker 1: their citizens, the ability to uh, basically enforce the carrying 423 00:26:32,440 --> 00:26:37,400 Speaker 1: of identity cards or registration and local police stations. I mean, 424 00:26:37,440 --> 00:26:38,879 Speaker 1: you know, you go and you try to live in 425 00:26:38,920 --> 00:26:42,280 Speaker 1: any kind of municipality in the European Union, or indeed 426 00:26:42,320 --> 00:26:45,760 Speaker 1: in any European country outside the European Union, and you're 427 00:26:45,800 --> 00:26:49,600 Speaker 1: gonna end up in some governmental office pretty quick, pretty quickly. 428 00:26:49,680 --> 00:26:53,400 Speaker 1: Rather um, that identifies who you are, where you are, 429 00:26:53,560 --> 00:26:56,040 Speaker 1: what you do, why you're there, on what job you have. 430 00:26:56,200 --> 00:26:59,200 Speaker 1: So it's not as if they are doing this out 431 00:26:59,200 --> 00:27:02,880 Speaker 1: of some ultra degreason for personal privacy, but it may 432 00:27:02,880 --> 00:27:06,280 Speaker 1: be because the government doesn't want any competition when it 433 00:27:06,280 --> 00:27:08,160 Speaker 1: comes to Facebook. Yeah, that's a fair question. I don't 434 00:27:08,160 --> 00:27:11,240 Speaker 1: think I know enough about the data collection policies of 435 00:27:11,840 --> 00:27:16,280 Speaker 1: European governments to answer that question confidently. I do think though, 436 00:27:16,320 --> 00:27:21,680 Speaker 1: there is genuine concern among European regulators about commercial entities 437 00:27:22,160 --> 00:27:27,080 Speaker 1: and um what information they get from their citizens, and 438 00:27:27,160 --> 00:27:31,000 Speaker 1: some of it may be trying to protect European companies 439 00:27:31,160 --> 00:27:35,320 Speaker 1: from competition from American companies Internet companies. You know, there 440 00:27:35,400 --> 00:27:40,040 Speaker 1: is no really big and powerful global internet companies based 441 00:27:40,040 --> 00:27:43,760 Speaker 1: in Europe with you. Yeah, it's a little bit of 442 00:27:43,760 --> 00:27:45,720 Speaker 1: a different animal, but yeah, there is no sort of 443 00:27:45,720 --> 00:27:48,080 Speaker 1: Facebook or Google of Europe, or at least not the 444 00:27:48,119 --> 00:27:52,800 Speaker 1: size of Facebook and Google. So there may be some 445 00:27:52,800 --> 00:27:55,440 Speaker 1: some competitive issues at play here, But mostly I think 446 00:27:55,440 --> 00:27:58,119 Speaker 1: it is genuine concern on the part of European regulators 447 00:27:58,119 --> 00:28:01,320 Speaker 1: and governments to protect their citizens. So aside from what 448 00:28:01,359 --> 00:28:03,399 Speaker 1: we've talked about so far, what are the highlights to 449 00:28:03,440 --> 00:28:09,119 Speaker 1: you until now. Um, Look, I I think the highlights 450 00:28:09,200 --> 00:28:13,600 Speaker 1: to me are that there is now general agreement, although 451 00:28:13,800 --> 00:28:18,280 Speaker 1: the devils and the details, from both Facebook and lawmakers 452 00:28:18,760 --> 00:28:22,639 Speaker 1: both Republican and Democratic, that there needs to be some 453 00:28:22,680 --> 00:28:26,840 Speaker 1: more regulation of Facebook or other internet and social media companies. 454 00:28:27,040 --> 00:28:29,800 Speaker 1: And look, I don't I'm skeptical that anything will happen, 455 00:28:29,840 --> 00:28:34,400 Speaker 1: but the fact that again all of those sides Democrats, Republicans, 456 00:28:34,440 --> 00:28:38,800 Speaker 1: and Facebook itself have acknowledged the vague need for regulation 457 00:28:38,880 --> 00:28:42,080 Speaker 1: that feels like a watershed moment. Okay, So then who 458 00:28:42,160 --> 00:28:43,840 Speaker 1: is going to be responsible for that, because it's not 459 00:28:43,840 --> 00:28:48,120 Speaker 1: going to be Congress, right, Yeah, I don't know. I mean, look, um, 460 00:28:48,560 --> 00:28:52,040 Speaker 1: this is this is a mid term election year. It 461 00:28:52,080 --> 00:28:55,120 Speaker 1: seems hard to imagine that anything will get substantive, will 462 00:28:55,120 --> 00:28:58,680 Speaker 1: get past this year. And then, honestly, Facebook maybe just 463 00:28:58,800 --> 00:29:01,280 Speaker 1: hoping to play out the clock that by next year 464 00:29:01,480 --> 00:29:06,280 Speaker 1: Congress will have moved on to something else. Shira the 465 00:29:06,840 --> 00:29:11,720 Speaker 1: Uh the consent decree that the that the Federal Trade 466 00:29:11,720 --> 00:29:17,240 Speaker 1: Commission has with Facebook was referenced several times, and several 467 00:29:17,240 --> 00:29:22,000 Speaker 1: times Mark Zuckerberg didn't seem to have any detailed knowledge 468 00:29:22,240 --> 00:29:27,480 Speaker 1: of that consent decree. Uh does that surprise you. Yeah, 469 00:29:27,520 --> 00:29:29,120 Speaker 1: it was a little bit strange. I suspect he was 470 00:29:29,200 --> 00:29:32,840 Speaker 1: probably trying to avoid getting himself trapped in some line 471 00:29:32,880 --> 00:29:36,520 Speaker 1: of questioning that he couldn't control. Um, but yes, it 472 00:29:36,600 --> 00:29:39,160 Speaker 1: did seem odd that, For example, he he was asked 473 00:29:39,200 --> 00:29:42,120 Speaker 1: whether Facebook had to pay a financial fine from the 474 00:29:42,160 --> 00:29:44,720 Speaker 1: FTC in two thousand eleven, which they did not. The 475 00:29:44,760 --> 00:29:47,000 Speaker 1: FTC does not really have the ability to do that 476 00:29:47,080 --> 00:29:49,320 Speaker 1: in the case that happened to Facebook, and it was 477 00:29:49,360 --> 00:29:53,240 Speaker 1: weird that he couldn't answer that. So what are the 478 00:29:53,240 --> 00:29:58,640 Speaker 1: implications here for the other big social media companies? I mean, 479 00:29:59,360 --> 00:30:02,120 Speaker 1: I'm a little bit horns So on the one hand, um, 480 00:30:02,240 --> 00:30:05,840 Speaker 1: the other Internet companies like Google and Twitter have kind 481 00:30:05,840 --> 00:30:08,520 Speaker 1: of gotten a past the last few weeks as the 482 00:30:08,560 --> 00:30:12,640 Speaker 1: world's attention has focused on Facebook's crisis, But they have 483 00:30:13,160 --> 00:30:16,840 Speaker 1: almost exactly the same basic issue issues as Facebook, which 484 00:30:16,880 --> 00:30:20,880 Speaker 1: is their business models are dependent on harvesting data and 485 00:30:21,000 --> 00:30:24,280 Speaker 1: using that data about people to target ads. They have 486 00:30:24,320 --> 00:30:27,080 Speaker 1: also faced numerous questions about whether they strike the right 487 00:30:27,120 --> 00:30:32,720 Speaker 1: balance between um, uh, you know, creating a free and 488 00:30:32,760 --> 00:30:36,480 Speaker 1: open exchange of ideas online and making sure that people 489 00:30:36,520 --> 00:30:40,640 Speaker 1: aren't being harassed incited into violence or otherwise abused on 490 00:30:40,680 --> 00:30:44,200 Speaker 1: their platforms. And again, Facebook, Google and Twitter and others 491 00:30:44,240 --> 00:30:46,760 Speaker 1: all have those same issues, and they, at least for now, 492 00:30:46,800 --> 00:30:49,360 Speaker 1: haven't had to tackle those. Sure O, thank you very 493 00:30:49,440 --> 00:30:51,920 Speaker 1: much for being with us our Bloomberg Gadfly columnists for 494 00:30:51,960 --> 00:30:55,160 Speaker 1: all things technology, great columns on Facebook and great coverage 495 00:30:55,160 --> 00:30:58,040 Speaker 1: of Facebook. And of course we're always following you on 496 00:30:58,040 --> 00:31:04,280 Speaker 1: Twitter at shira Ovi Tape. Thanks for listening to the 497 00:31:04,320 --> 00:31:07,440 Speaker 1: Bloomberg P and L podcast. You can subscribe and listen 498 00:31:07,440 --> 00:31:11,600 Speaker 1: to interviews at Apple Podcasts, SoundCloud, or whatever podcast platform 499 00:31:11,680 --> 00:31:15,560 Speaker 1: you prefer. I'm pim Fox. I'm on Twitter at pim Fox. 500 00:31:15,880 --> 00:31:19,400 Speaker 1: I'm on Twitter at Lisa Abramo. It's one before the podcast. 501 00:31:19,440 --> 00:31:22,040 Speaker 1: You can always catch us worldwide on Bloomberg Radio