WEBVTT - Bloomberg Businessweek Weekend - September 5th, 2025 0:00:00.280 --> 0:00:07.240 Bloomberg Audio Studios, Podcasts, radio News. 0:00:08.640 --> 0:00:13.000 This is Bloomberg Business Week Daily reporting from the magazine 0:00:13.000 --> 0:00:17.599 that helps global leaders stay ahead with insight on the people, companies, 0:00:17.640 --> 0:00:22.520 and trends shaping today's complex economy. Plus global business finance 0:00:22.560 --> 0:00:26.280 and tech news as it happens. The Bloomberg Business Weekdaily 0:00:26.400 --> 0:00:31.320 Podcast with Carol Masser and Tim Steneveek on Bloomberg Radio. 0:00:31.920 --> 0:00:34.760 Hi, everyone, Welcome to the Bloomberg Business Week Weekend Podcast. 0:00:35.080 --> 0:00:37.600 Well a big week for US economic data. Reads on 0:00:37.680 --> 0:00:40.080 the US labor market, we got the Fed Beaige book, 0:00:40.159 --> 0:00:43.000 a few earnings continuing to trickle out as well. We 0:00:43.120 --> 0:00:45.159 even hit an all time high on the S and 0:00:45.240 --> 0:00:48.320 P five hundred. Just head to the Bloomberg or Bloomberg 0:00:48.320 --> 0:00:51.080 dot com for all the specifics and for more clues 0:00:51.120 --> 0:00:53.720 on the outlook. We leaned in big time on views 0:00:53.720 --> 0:00:55.959 from the c suite from industries that can tell us 0:00:56.120 --> 0:00:57.560 a lot about the US economy. 0:00:57.800 --> 0:01:00.200 On that this hour, we talked to the CITA CEO 0:01:00.320 --> 0:01:04.840 of commercial construction company Mackissick and McKissick, which has worked 0:01:04.880 --> 0:01:08.319 on some iconic projects in New York City think Barkley Center, 0:01:08.440 --> 0:01:12.080 the Oculus. Yeah, Billy Jean King Tennis Center. 0:01:12.160 --> 0:01:13.080 I had no idea. 0:01:13.160 --> 0:01:16.319 Yeah, they've done so much, She joins us with a 0:01:16.400 --> 0:01:17.880 somewhat sobering view. 0:01:17.959 --> 0:01:19.880 Yeah, it really kind of stopped us for a moment. 0:01:20.120 --> 0:01:20.320 Hey. 0:01:20.360 --> 0:01:22.800 Plus, we've got the billionaire real estate developer who is 0:01:22.840 --> 0:01:25.240 in the midst of the rebuild after the LA Fires 0:01:25.280 --> 0:01:28.320 earlier this year. He also may or may not be 0:01:28.440 --> 0:01:31.440 seeking public office in his home state of California. That 0:01:31.480 --> 0:01:32.320 interview to come. 0:01:32.560 --> 0:01:35.680 Also, for another read on the economy and the US consumer, 0:01:36.040 --> 0:01:38.080 we speak with the CEO of the buy Now, Pay 0:01:38.160 --> 0:01:40.679 Later company affirm that's Max Levchin. 0:01:40.800 --> 0:01:43.480 And later on in our second hour Bloomberg Power Players 0:01:43.560 --> 0:01:46.440 New York, we talked the business of sports with Derek Sprague, 0:01:46.520 --> 0:01:51.240 CEO of PGA America. Also baseball MVP Legend and sports 0:01:51.240 --> 0:01:55.040 team owner Alex Rodriguez, and Gary Bettman, NHL commissioner, and 0:01:55.080 --> 0:01:57.480 Ted Leonsis of Monumental Sports. 0:01:57.680 --> 0:01:59.480 All that to come. We begin with a look at 0:01:59.520 --> 0:02:03.120 construction and spending on big projects think airports, sporting arenas, 0:02:03.120 --> 0:02:07.040 hospitals and more. Jerald mcisock Daniel as president and CEO 0:02:07.080 --> 0:02:10.119 of Mackissick and Mackissick. It's a one hundred and twenty 0:02:10.200 --> 0:02:13.040 year old construction firm that's behind some well known and 0:02:13.280 --> 0:02:17.239 very large projects. We're talking Barkley Center, the Oculus in Manhattan, 0:02:17.639 --> 0:02:21.000 the new Terminal one at JFK International Airport, and Lincoln 0:02:21.080 --> 0:02:24.639 Financial Field where the Philadelphia Eagles play much more too. 0:02:25.040 --> 0:02:27.679 I want to start by just getting an understanding from 0:02:27.720 --> 0:02:30.520 you about the economy, where it is in your view, 0:02:30.520 --> 0:02:33.400 and if people are spending money. 0:02:35.480 --> 0:02:37.680 I think people are holding back a little bit. Of 0:02:37.720 --> 0:02:42.320 prices are high. I know as far as the construction industry, 0:02:42.440 --> 0:02:46.920 we are beginning to fill some of the tariffs, and 0:02:47.000 --> 0:02:50.040 so yeah, I think people are holding back on spending. 0:02:50.480 --> 0:02:53.559 Talk a little bit about where you're feeling the tariffs. 0:02:54.280 --> 0:02:58.480 Well, one in particular, I would say, is JFK Terminal one. 0:02:59.320 --> 0:03:03.360 We're finishing Phase A of that project, which is almost 0:03:03.400 --> 0:03:09.360 three million square feet in twenty twenty six, but we 0:03:09.919 --> 0:03:14.800 are scheduled to start work on Phase B and that's 0:03:15.080 --> 0:03:19.680 been pushed out, I believe because of tourism is not 0:03:20.800 --> 0:03:24.360 has decreased quite a bit to New York City. 0:03:24.639 --> 0:03:29.119 Wow, how much has it been pushed out? 0:03:29.400 --> 0:03:32.040 Well, right now, it's just slowed and it's been pushed 0:03:32.040 --> 0:03:32.960 out several. 0:03:32.639 --> 0:03:36.280 Months where else are you seeing that too in terms 0:03:36.280 --> 0:03:38.960 of projects that you guys are working on, because your 0:03:39.040 --> 0:03:43.040 portfolio is just vast and you cover, like we said, academia, 0:03:43.240 --> 0:03:46.240 just so many different kind of commercial aspects. Where else 0:03:46.360 --> 0:03:49.280 are things maybe being slowed down pushed out? 0:03:50.160 --> 0:03:53.760 Well, I mean I can only talk about the areas 0:03:54.400 --> 0:03:59.640 where we work, which is in rail and transportation. You know, 0:04:00.360 --> 0:04:06.160 FTA I think has slowed on releasing projects. As you know, 0:04:07.720 --> 0:04:10.680 several of their staff, more than i'd say fifty percent 0:04:11.040 --> 0:04:15.920 staff has been released, and so it was very difficult 0:04:16.000 --> 0:04:20.360 for them to push out the capital program projects that 0:04:20.400 --> 0:04:25.599 they do have. And so you know, the Gateway seems 0:04:25.640 --> 0:04:28.800 to be moving ahead just fine. 0:04:29.200 --> 0:04:31.520 And this is the Gateway tunnel between New York and 0:04:31.560 --> 0:04:33.400 New Jersey. 0:04:33.480 --> 0:04:37.839 Yes, okay, yes, yes, and I just pray that that continues. 0:04:38.640 --> 0:04:41.920 Well, let's I just want to contextualize that a single 0:04:41.960 --> 0:04:45.599 project of yours, this is the terminal one at JFK 0:04:45.720 --> 0:04:48.640 International Airport. It's a nine and a half billion dollars 0:04:48.720 --> 0:04:52.359 in value project. Your firm is working specifically on the 0:04:52.400 --> 0:04:56.680 oversight of project management construction management. As a government liaison, 0:04:57.040 --> 0:05:01.000 you also handle community outreach, so really runs the gamut 0:05:01.080 --> 0:05:03.680 of what you're working on. Can you give us an 0:05:03.720 --> 0:05:06.720 idea of the pipeline, Not necessarily projects that have been 0:05:06.720 --> 0:05:09.600 announced or where the shovel is in the ground, but 0:05:10.120 --> 0:05:14.000 projects that you're talking to municipalities about, projects that you're 0:05:14.040 --> 0:05:18.479 talking to academic institutions about that you're not necessarily ready 0:05:18.480 --> 0:05:20.920 to announce. But give us a good idea of what 0:05:20.960 --> 0:05:25.480 that pipeline looks like in terms of how these entities 0:05:25.520 --> 0:05:26.360 are ready to spend. 0:05:27.040 --> 0:05:30.000 Well, I think you know it's positive when we think 0:05:30.040 --> 0:05:36.799 about infrastructure projects, waterfront projects with New York City Economic 0:05:36.839 --> 0:05:43.440 Development Corporation, I believe the MTA projects are eventually going 0:05:43.520 --> 0:05:48.560 to move forward. I think the big frontier is some 0:05:48.680 --> 0:05:54.800 of the micro trips manufacturing plants like Mikron that's upstate 0:05:54.880 --> 0:05:59.520 New York. That's one hundred billion dollars. It's moving forward. 0:06:00.040 --> 0:06:02.640 And then right after that, I think it'll be the casinos. 0:06:03.640 --> 0:06:09.640 Once a casino owner, once the three licensing licenses are awarded, 0:06:10.279 --> 0:06:13.200 do you think you'll see starting there and that will 0:06:13.240 --> 0:06:14.640 be billions of dollars. 0:06:14.760 --> 0:06:16.440 Do you think New York City will get one of 0:06:16.440 --> 0:06:17.200 these licenses? 0:06:19.680 --> 0:06:23.240 Who knows? You know, if I had to bid on it, 0:06:23.279 --> 0:06:26.360 I would say probably not in Manhattan, inside of. 0:06:26.320 --> 0:06:30.120 Manhattan, so that would be maybe Queen's near the area 0:06:30.240 --> 0:06:31.200 close to City Field. 0:06:31.360 --> 0:06:35.960 Yeah, okay, Queens, Yeah, well absolutely. 0:06:36.880 --> 0:06:40.760 Cheryl talked to us about the environment, and you know, 0:06:40.800 --> 0:06:44.159 as you mentioned about what's going on in terms of 0:06:44.200 --> 0:06:47.560 various government officials or departments that you know, we're official 0:06:47.640 --> 0:06:51.000 where folks have been let go and show what that 0:06:51.120 --> 0:06:54.880 is doing to different projects. The political environment, the federal 0:06:54.920 --> 0:07:01.040 political environment. We talk about whether administrations, you know, are 0:07:01.080 --> 0:07:04.520 good for the business environment or not. And we do 0:07:04.560 --> 0:07:06.400 have folks who come on and say that this is 0:07:06.440 --> 0:07:09.039 an administration that's going to cut back some of the 0:07:09.080 --> 0:07:12.400 regulatory issues and make it easier better. Is it not 0:07:12.600 --> 0:07:15.440 making it better easier for what you do? 0:07:17.480 --> 0:07:20.920 I don't see evidence of that. You know, if you 0:07:20.960 --> 0:07:24.480 don't have people sitting behind the desk to actually push 0:07:24.560 --> 0:07:28.040 the workout, I don't see it getting better. And you know, 0:07:28.080 --> 0:07:34.200 I have to shift to our energy crisis that can 0:07:34.240 --> 0:07:40.400 potentially happen. You know now that the administration has really 0:07:40.480 --> 0:07:45.720 sunset all of the offshore and onshore wind projects that 0:07:45.840 --> 0:07:52.200 we terribly need to supplement our electrical systems. So I 0:07:52.240 --> 0:07:55.400 am very concerned about where we are headed. 0:07:56.800 --> 0:08:00.920 We're speaking right now with Cheryl McKissick. Daniel, President CEO 0:08:01.040 --> 0:08:05.400 of McKissick and McKissick. You mentioned the offshore when Bloomberg 0:08:05.880 --> 0:08:10.239 New Energy Finance BLOOMBERGETIAFF reporting that US offshore wind faces 0:08:10.280 --> 0:08:14.200 a twenty eight billion dollar hole. With President Trump's moves 0:08:14.240 --> 0:08:17.680 five under construction, US offshore wind farms, representing about twenty 0:08:17.720 --> 0:08:21.000 eight billion dollars of committed capital, faced severe delays and 0:08:21.000 --> 0:08:25.800 even cancelation after recent actions from the Trump administration. At 0:08:25.880 --> 0:08:28.119 McKissick and McKissick, do you work on offshore wind. 0:08:29.160 --> 0:08:33.120 We do not work on offshore wind. But I am 0:08:33.280 --> 0:08:37.320 a board of advisor for National Grid, and so I 0:08:37.520 --> 0:08:45.360 understand how critical these other resources are to our grid. 0:08:45.440 --> 0:08:49.040 You know, there's a high demand for electricity. Buildings that 0:08:49.080 --> 0:08:51.960 are being constructed now are one hundred percent electric. We 0:08:52.040 --> 0:08:56.920 have the ev cars, we have the data centers, and 0:08:56.960 --> 0:09:01.680 so electricity is critical for us. And I believe well 0:09:01.679 --> 0:09:05.280 we definitely were counting on these wind forms as another 0:09:05.520 --> 0:09:08.960 strong resource to help us supply the electricity we need. 0:09:09.320 --> 0:09:14.120 You sound show pretty negative, not I don't mean negative, 0:09:14.440 --> 0:09:17.199 but down on the environment, and I guess we were 0:09:17.240 --> 0:09:19.720 really looking forward to talking to you because we're trying 0:09:19.720 --> 0:09:21.480 to get an idea of the way forward in an 0:09:21.640 --> 0:09:25.839 environment where there's a lot of presidential pressure to cut 0:09:25.920 --> 0:09:28.360 interest rates, and there's some who say, well, wait to meet. 0:09:28.440 --> 0:09:30.839 The economy is doing just fine. We don't need that. 0:09:31.840 --> 0:09:35.640 I'm just trying to understand is it just the overall 0:09:36.240 --> 0:09:41.160 environment because of politics or is it higher rates? Like, 0:09:41.240 --> 0:09:44.839 what is it that you think is causing kind of 0:09:44.840 --> 0:09:46.000 the biggest issues for you? 0:09:46.760 --> 0:09:47.960 I think it's politics. 0:09:49.480 --> 0:09:51.600 Well do you feel do you feel targeted? Can I 0:09:51.640 --> 0:09:55.520 ask you as as the owner of a minority owner 0:09:55.520 --> 0:09:56.120 of a business. 0:09:57.559 --> 0:10:02.960 No, I don't feel targeted personally. You know, I think 0:10:03.000 --> 0:10:09.239 for some reason, there is a focus on DEI programs, 0:10:09.280 --> 0:10:12.720 and you know, it has not affected our business in 0:10:12.800 --> 0:10:16.240 New York, but it has affected our businesses in other 0:10:16.320 --> 0:10:22.520 states where municipalities have had to suspend their D and 0:10:22.559 --> 0:10:25.880 I programs if they wanted to get funding from the 0:10:25.920 --> 0:10:29.920 federal government. And so that is somewhat of a concern. 0:10:31.440 --> 0:10:31.560 Now. 0:10:31.600 --> 0:10:34.160 I hope that we continue to be isolated from that 0:10:34.240 --> 0:10:36.480 in New York. I don't know how much longer that 0:10:36.520 --> 0:10:37.160 will last. 0:10:38.600 --> 0:10:40.720 Do you get you know, on the website, I noticed 0:10:40.760 --> 0:10:43.600 the firm is referred to as quote the oldest minority 0:10:43.720 --> 0:10:47.840 women owned professional design and construction firm in the United States. 0:10:47.880 --> 0:10:51.080 Do you ever consider because of the political environment that 0:10:51.120 --> 0:10:53.960 we're in right now, not necessarily highlighting that. 0:10:54.880 --> 0:10:57.920 No, I do not feel that way. That's why I 0:10:58.000 --> 0:11:01.679 recently wrote my book, The Black Family Who Built America. 0:11:01.800 --> 0:11:04.400 I'm so glad that it's coming out in this time 0:11:04.520 --> 0:11:09.960 and in this age, because it is an account of 0:11:10.080 --> 0:11:14.319 our family history. After two hundred years when the first 0:11:14.360 --> 0:11:17.000 descent of our family came to this country in latest 0:11:17.040 --> 0:11:20.400 first brick, we are still here and we are an 0:11:20.520 --> 0:11:27.040 unshakable pillar of ingenuity and resilience. And this book is 0:11:27.120 --> 0:11:30.200 all about saying, you know, this is a receipt to 0:11:30.280 --> 0:11:34.000 say that we've always been here and we're not going anywhere. 0:11:35.360 --> 0:11:38.199 Black excellence may have been ignored, but that doesn't mean 0:11:38.240 --> 0:11:38.920 it's not here. 0:11:39.600 --> 0:11:42.320 Cheryl, you got to come back and join us. It's 0:11:42.360 --> 0:11:45.680 great to have you back here. Cheryl McKissick Daniel. The 0:11:45.720 --> 0:11:48.320 new book is called The Black Family Who Built America, 0:11:48.400 --> 0:11:51.600 The Mckissics Two Centuries of Daring Pioneers. It was out 0:11:51.720 --> 0:11:56.080 last month. Cheryl McKissick Daniel, President CEO of Mickissic and mckissic. 0:12:00.240 --> 0:12:04.120 Listening to the Bloomberg Business Weekdaily podcast. Catch us live 0:12:04.240 --> 0:12:07.440 weekday afternoons from two to five pm Eastern. Listen on 0:12:07.480 --> 0:12:10.920 Apple CarPlay and Android Auto with the Bloomberg Business app, 0:12:11.080 --> 0:12:12.880 or watch us live on YouTube. 0:12:13.960 --> 0:12:17.040 So we got a lot of economic data this past week, payrolls, 0:12:17.200 --> 0:12:20.920 joelt Sturbel Goods, some anecdotes thanks to the Fed's Beige Book. 0:12:21.240 --> 0:12:23.439 All of that helping to inform how investors are thinking 0:12:23.440 --> 0:12:25.880 about this economy as we are just about one and 0:12:25.880 --> 0:12:28.040 a half weeks away from the next FED decision. 0:12:28.240 --> 0:12:30.480 Also helping inform them is what we hear from the 0:12:30.480 --> 0:12:33.760 people who are big players in this economy. Caruso has 0:12:33.800 --> 0:12:36.880 over two point five million square feet of property assets, 0:12:36.920 --> 0:12:40.640 all owned and operated by Caruso, all capital two coming 0:12:40.679 --> 0:12:44.400 from within. The assets include upscale retail, resort, office and 0:12:44.520 --> 0:12:49.280 residential properties all across southern California. Rick Caruso has been 0:12:49.320 --> 0:12:52.960 investing in and developing property going back to nineteen eighty seven. 0:12:53.120 --> 0:12:55.880 Yes, he is the man behind the firm, Rick Caruso. 0:12:55.920 --> 0:12:58.800 He's also a philanthropist, a former president of the LA 0:12:58.840 --> 0:13:01.800 Police Commission, was part of the board of water and 0:13:01.920 --> 0:13:06.000 power commissioners, and has been involved in politics, notably running 0:13:06.000 --> 0:13:08.520 as a candidate for LA mayor in twenty twenty two. 0:13:09.080 --> 0:13:12.200 He leads a nonprofit aimed at accelerating private sector involvement 0:13:12.200 --> 0:13:16.240 in the LA area's massive rebuilding effort, known as steadfast LA. 0:13:16.400 --> 0:13:19.200 Rick joined US from Los Angeles. He began by discussing 0:13:19.200 --> 0:13:22.880 his view of the economy, particularly in southern California. 0:13:23.040 --> 0:13:25.360 I think it's still very robust, to be honest. Now, 0:13:26.120 --> 0:13:28.440 the data that I look at is obviously off of 0:13:28.480 --> 0:13:31.880 our properties, and our properties are growing in terms of 0:13:31.960 --> 0:13:35.360 attendance on a double digit basis year over years, so 0:13:35.400 --> 0:13:39.400 that's very strong. Our sales per square foot are continuing 0:13:39.400 --> 0:13:41.760 to grow at a very strong pace, and we have 0:13:41.800 --> 0:13:45.480 a lot of demand for retail space. So retailers, the 0:13:45.520 --> 0:13:48.480 best in class retailers are growing. You take a look 0:13:48.480 --> 0:13:51.000 at a broader picture, I think there's a little bit 0:13:51.040 --> 0:13:53.760 of softness out there in some of the categories. Luxury 0:13:54.400 --> 0:13:57.480 is not growing as much as it has. There's some 0:13:57.600 --> 0:14:01.720 luxury retailers that are for a bit, but I'm still 0:14:01.760 --> 0:14:04.280 pretty bullish on the consumer in the United States. 0:14:05.080 --> 0:14:07.960 We should remind everybody the properties and the developments that 0:14:08.000 --> 0:14:10.720 you've done have really served at the higher end of 0:14:10.760 --> 0:14:13.680 the consumer. People even outside of the Los Angeles area 0:14:13.679 --> 0:14:16.320 would be familiar with the Grove for example, or perhaps 0:14:16.360 --> 0:14:21.120 Miramar in Montecito, just around Santa Barbara, but the vast 0:14:21.200 --> 0:14:26.520 majority in the Southern California area. What about Southern California's economy, 0:14:26.720 --> 0:14:29.640 that economy that you focus on. What have you noticed 0:14:29.640 --> 0:14:32.200 in terms of changes in the last couple of years, 0:14:32.240 --> 0:14:35.280 as we've heard the steady drumbeat of information about people 0:14:35.400 --> 0:14:40.080 leaving the region because of the regulatory environment, the cost pressures, 0:14:40.320 --> 0:14:40.800 what have. 0:14:40.760 --> 0:14:43.840 You Well, I think you're right, and I think it's 0:14:43.840 --> 0:14:45.920 a challenge. So when you take a look at La 0:14:46.000 --> 0:14:49.800 City in particular La County, you do have a very 0:14:49.840 --> 0:14:54.600 over regulated, tough business environment, and it's very tough, especially 0:14:54.640 --> 0:14:57.960 on middle or small businesses to operate in the city 0:14:57.960 --> 0:15:00.120 because of the cost of operation. So you do have 0:15:00.200 --> 0:15:03.600 businesses leaving and that's troubling because the backbone of our 0:15:03.640 --> 0:15:08.400 economy in Southern California are the small businesses. So, you know, 0:15:08.640 --> 0:15:11.520 one of the things that we push for, I push 0:15:11.600 --> 0:15:13.520 for as just a business person and a member of 0:15:13.560 --> 0:15:16.560 this community, is to be more business friendly and to 0:15:16.640 --> 0:15:20.200 start deregulating so we can grow businesses in the Los 0:15:20.200 --> 0:15:22.720 Angeles region. And I think as a state, we have 0:15:22.760 --> 0:15:25.720 a problem with that. We have businesses leaving the state 0:15:25.760 --> 0:15:29.400 of California going to regions that are more business friendly, 0:15:29.960 --> 0:15:34.480 have less red tape, allow businesses to thrive on a 0:15:34.520 --> 0:15:37.720 much easier basis. So you know, hopefully the tide will 0:15:37.840 --> 0:15:40.520 change on that, but it's certainly an issue in southern 0:15:40.600 --> 0:15:42.720 California and I think California in general. 0:15:42.880 --> 0:15:46.080 Yet you remain rick. You have not moved to Arizona. 0:15:46.120 --> 0:15:49.040 You have not moved businesses to Arizona, to Texas, to Florida, 0:15:49.080 --> 0:15:52.120 these areas of the country where people from California have 0:15:52.240 --> 0:15:57.160 been going as a result of regulatory easing. One could say, 0:15:59.320 --> 0:16:01.560 will you stay in California. 0:16:01.680 --> 0:16:04.240 Well, I'm bullish on California. I'm going to stay in California. 0:16:04.320 --> 0:16:06.160 I believe in it. I think we should be leading 0:16:06.160 --> 0:16:09.080 the nation in California. I think we should be leading 0:16:09.080 --> 0:16:11.680 the nation in Los Angeles. And I also have a 0:16:11.680 --> 0:16:14.520 practical problem. You can't pick up large projects and move them. 0:16:14.520 --> 0:16:18.520 I can't pick up the movement. So I have to 0:16:18.600 --> 0:16:23.160 remain engaged, bullish, and hope we change the trajectory, and 0:16:23.200 --> 0:16:25.320 I think we will, I really do. I think people 0:16:25.400 --> 0:16:28.600 are at a point, certainly in the Los Angeles area, 0:16:28.640 --> 0:16:31.520 that they've realized that the path we're going down is 0:16:31.560 --> 0:16:34.800 not sustainable. We've got a budget in LA City that's 0:16:34.800 --> 0:16:37.800 a billion dollars out of budget. We have revenue decreases 0:16:37.840 --> 0:16:41.680 in LA City because businesses have pulled back and left, 0:16:42.120 --> 0:16:44.800 and we don't have new capital and investment coming into 0:16:44.920 --> 0:16:48.480 LA like we should. They're going into other regions. Even 0:16:48.760 --> 0:16:52.160 immediately outside of Los Angeles. You have cities that are 0:16:52.200 --> 0:16:55.680 doing incredibly good jobs, the city of Glendale, the city 0:16:55.680 --> 0:16:59.800 of Culver City, that are more business friendly, are safer, cleaner, 0:17:01.000 --> 0:17:05.520 more supportive of great neighborhoods, and they're attracting the business 0:17:05.680 --> 0:17:07.680 at the cost of LA City. So we've got to 0:17:07.760 --> 0:17:11.840 change that. But I remain optimistic the change is coming soon. 0:17:12.240 --> 0:17:14.480 How are politics getting in the way of all of this? 0:17:14.600 --> 0:17:18.040 And I ask it, Rick, You've got California Governor Newsom 0:17:18.080 --> 0:17:20.480 and President Trump really in kind of high stakes feuds 0:17:20.520 --> 0:17:25.840 over a bunch of issues, whether it's California's universities, their environment, redistricting, 0:17:26.160 --> 0:17:29.879 redistricting excuse me, and other issues. I mean, talk to 0:17:29.960 --> 0:17:31.760 me about that, and who side are you on in 0:17:31.840 --> 0:17:32.159 all of this? 0:17:33.680 --> 0:17:36.080 Well, I'm on the honestly, I'm on the side of 0:17:36.119 --> 0:17:39.520 the people of LA and the people of California. Here's 0:17:39.560 --> 0:17:42.520 the problem that I have with the battle that's going on. 0:17:43.000 --> 0:17:45.960 We've got some really serious problems that need to be 0:17:46.040 --> 0:17:51.760 dealt with, crime, shortage of housing, homelessness, etc. The cost 0:17:51.840 --> 0:17:56.080 of living in California. Having an argument between the governor 0:17:56.080 --> 0:17:58.879 and the president, between the mayor and the president, a 0:17:58.920 --> 0:18:03.400 lot of name calling going on doesn't advance anybody's cause 0:18:04.080 --> 0:18:07.960 to solving these problems. So what I hope is that 0:18:08.040 --> 0:18:10.920 we get past the rhetoric, figure out a way to 0:18:10.960 --> 0:18:14.080 sit down, find some common ground, and work together. Here 0:18:14.119 --> 0:18:18.119 in Los Angeles, we have three hundred thousand acres in 0:18:18.200 --> 0:18:22.200 Pacific Palisades, Malibu, and then also at an Alta Dina 0:18:22.400 --> 0:18:26.160 that was burned to the ground the size of two Manhattans. 0:18:26.680 --> 0:18:29.760 To put it in perspective for New Yorkers, we need 0:18:29.800 --> 0:18:33.320 federal help, we need federal funding, and we're getting none 0:18:33.359 --> 0:18:36.240 of that. And I don't think as the bickering is 0:18:36.280 --> 0:18:38.960 going on and the name calling is going on, that 0:18:39.200 --> 0:18:43.879 serves any purpose in advancing the negotiations of the discussions 0:18:43.880 --> 0:18:44.920 and getting federal help. 0:18:44.920 --> 0:18:47.760 In Los Angeles, we're speaking with Rick Caruso, founder and 0:18:47.760 --> 0:18:51.000 executive chairman of Caruso, the privately held real estate company, 0:18:51.080 --> 0:18:54.040 on the federal aid. On the federal funding. Have you 0:18:54.080 --> 0:18:57.280 had conversations with President Trump or members of the Trump 0:18:57.359 --> 0:19:00.720 administration expressing the need in your view for federal help 0:19:00.720 --> 0:19:02.800 for California in the wake of these disasters. 0:19:04.160 --> 0:19:06.960 I've had those discussions now with the President directly, but 0:19:07.000 --> 0:19:10.639 I've had those discussions with intermediaries. I've certainly had that 0:19:10.680 --> 0:19:14.840 discussion with our governor, and we need to find a 0:19:14.880 --> 0:19:18.639 way to get those discussions at a higher level and 0:19:19.119 --> 0:19:22.879 more productive. I know there's some talk Governor Scott or 0:19:22.920 --> 0:19:26.520 Senator Scott was out here in Los Angeles and talking 0:19:26.520 --> 0:19:29.600 about it, but it really is critical path because you 0:19:29.640 --> 0:19:32.560 have hundreds of thousands of people that have been displaced, 0:19:32.640 --> 0:19:35.760 You've got jobs that have been lost, you have a massive, 0:19:35.840 --> 0:19:38.960 massive rebuilding effort that's going to take tens and tens 0:19:39.000 --> 0:19:42.560 of billions of dollars in infrastructure. So we need the 0:19:42.600 --> 0:19:45.240 federal help. It just has to happen. Well, you know 0:19:45.359 --> 0:19:45.720 it should. 0:19:46.160 --> 0:19:49.480 Yeah, No, I hear you, and you've since the fires. 0:19:49.520 --> 0:19:52.000 I know, Tim and I just kind of preparing for this. 0:19:52.000 --> 0:19:54.000 Listen to a lot of conversations you've had with various 0:19:54.000 --> 0:19:57.160 individuals about this in terms of what needs to be done. 0:19:57.359 --> 0:20:01.000 You know what's interesting is need more federal help in 0:20:01.080 --> 0:20:03.480 terms of the rebuilding efforts. So then, how do you 0:20:03.520 --> 0:20:07.560 feel when President Trump illegally used federal troops in LA. 0:20:07.720 --> 0:20:11.960 I mean, if you were mayor there, how would you 0:20:12.000 --> 0:20:14.720 respond to President Trump and his threats and use of 0:20:14.760 --> 0:20:17.720 troops like that's going on when obviously, as you say, 0:20:17.880 --> 0:20:19.680 there are efforts needed to do the rebuild. 0:20:21.240 --> 0:20:23.840 Well, I've been very clear the federal troops coming into 0:20:23.960 --> 0:20:27.000 LA were wrong, and I don't think it should have 0:20:27.040 --> 0:20:30.359 ever happened. I would have gone to court immediately. They 0:20:30.440 --> 0:20:32.560 finally did go to court, as you know, the court 0:20:33.080 --> 0:20:36.119 ruled that it was an illegal use of those troops 0:20:36.160 --> 0:20:38.439 to come into the city of Los Angeles in this region. 0:20:39.000 --> 0:20:41.359 So it's not right to be doing that, and we 0:20:41.400 --> 0:20:43.159 don't need to be doing that. I mean that just 0:20:43.920 --> 0:20:48.480 this power grab that's going on does not advance the 0:20:48.520 --> 0:20:54.080 cause for any It just doesn't. And the division between 0:20:54.080 --> 0:20:58.159 the politics is harmful to the residents of Los Angeles. 0:20:58.840 --> 0:21:01.399 We've got to find some gum ground. We've got to 0:21:01.440 --> 0:21:04.399 act like grown ups. We've got to put our differences 0:21:04.440 --> 0:21:08.600 aside as elected officials and figure out how to work together. 0:21:09.200 --> 0:21:13.240 And so I would hope that our elected officials find 0:21:13.240 --> 0:21:16.040 a way to drop the name calling, maybe get on 0:21:16.080 --> 0:21:18.840 a plane and get over to Washington and see if 0:21:18.840 --> 0:21:21.119 we can find some common ground to work together. We 0:21:21.240 --> 0:21:24.520 also have the Olympics coming here, so Los Angeles is 0:21:24.600 --> 0:21:26.720 going to be the world stage for the United States 0:21:27.400 --> 0:21:29.520 and we need to be putting our best foot forward 0:21:30.000 --> 0:21:31.840 and we're going to be need to be making a 0:21:31.880 --> 0:21:34.720 lot of investments in order to do that, and again 0:21:35.440 --> 0:21:37.680 we need to have the help of the federal government 0:21:37.720 --> 0:21:38.120 to do that. 0:21:38.240 --> 0:21:39.960 So Rick, I'm kind of waiting for the flood of 0:21:39.960 --> 0:21:42.199 my emails to come into my Bloomberg because I think 0:21:42.200 --> 0:21:43.639 people who are listening with saying, well, this is a 0:21:43.720 --> 0:21:46.399 kind of folk, you know, individual you do want in politics. 0:21:46.440 --> 0:21:49.800 So what's your latest thinking on maybe running again for 0:21:50.160 --> 0:21:53.160 mayor or possibly governor of the state of California. 0:21:54.440 --> 0:21:56.960 Well, I'm seriously looking at it, and I've got a 0:21:56.960 --> 0:21:58.600 team of people that are working on it, and I'll 0:21:58.600 --> 0:22:01.840 make a decision soon on that, and I'm looking at 0:22:01.880 --> 0:22:05.720 both paths and there's good opportunities in both paths. But 0:22:06.000 --> 0:22:09.240 now I'm just remaining focus on what we're doing at steadfast, 0:22:10.000 --> 0:22:12.480 making sure we're getting people back in their communities as 0:22:12.560 --> 0:22:16.520 quick as possible. Yesterday I spent the afternoon in Altadena. 0:22:17.359 --> 0:22:20.160 We were giving out grants for small businesses to get 0:22:20.160 --> 0:22:23.720 reopened in all Toadna. We're doing the same in Palisades 0:22:23.720 --> 0:22:27.200 and in Malibu. So those kind of efforts are incredibly 0:22:27.240 --> 0:22:32.080 important to me because again, small businesses are critically important 0:22:32.080 --> 0:22:35.000 for jobs, and we're giving out about a million dollars 0:22:35.080 --> 0:22:38.000 in grants over the next couple of weeks. So that's 0:22:38.040 --> 0:22:41.080 what I'm going to stay focused on for now. Politics 0:22:41.080 --> 0:22:42.520 will come down the road fairly soon. 0:22:42.760 --> 0:22:44.200 All right, we want to talk about some of those 0:22:44.240 --> 0:22:46.600 efforts you're doing in terms of the rebuild. I got 0:22:46.600 --> 0:22:48.879 to ask you, though, if you do run or make 0:22:48.920 --> 0:22:50.880 a decision, would it be for mayor or for governor. 0:22:51.840 --> 0:22:53.880 I don't know yet. We're fine, We're going to find out. 0:22:53.920 --> 0:22:54.480 I'll let you know. 0:22:54.840 --> 0:22:57.800 Okay, I'm going to hold you to it. I'm going 0:22:57.880 --> 0:22:58.560 to hold you to it. 0:22:59.600 --> 0:23:05.080 Hey, Rick, I'm curious about just fire resilience in California, 0:23:05.200 --> 0:23:06.920