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Speaker 1: Brought you by Bank of America, Mary Lynch. Investing in

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Speaker 1: local communities, economies and a sustainable future. That's the power

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Speaker 1: of global connections. Mary Lynch, Pierce Fenner and Smith Incorporated

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Speaker 1: Member s I p C. Welcome to the Bloomberg Surveillance Podcast.

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Speaker 1: I'm Tom Keene with David Gura. Daily we bring you

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Speaker 1: insight from the best in economics, finance, investment, and international relations.

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Speaker 1: Find Bloomberg Surveillance on iTunes, SoundCloud, Bloomberg dot Com, and

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Speaker 1: of course on the Bloomberg. Tom Keen in Davos, Switzerland

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Speaker 1: for the World Economic Forum's annual meeting. He just sat

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Speaker 1: down with Jacob Frankel, chairman of JP Morgan Chase International,

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Speaker 1: former Governor of the Bank of Israel, and let's take

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Speaker 1: a listen to some of their conversation. How are we doing?

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Speaker 1: Are we out of financial crisis? Yet? We are clearly

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Speaker 1: very close to it, But I would never declare victory prematurely.

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Speaker 1: The important point is that at the beginning of the crisis,

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Speaker 1: the mindset of policy makers was how to extinguish a file.

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Speaker 1: This is a mindset that has a short term perspective.

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Speaker 1: In front of you, you say, I have a file.

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Speaker 1: I have to put a lot of water on the file,

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Speaker 1: and if the carpets get spoiled, so beat. I need

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Speaker 1: to deal with the file. But over time, as the

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Speaker 1: file is being put away, we need to worry about

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Speaker 1: the resumption of growth. We need to have a medium

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Speaker 1: term approach, a long term approach, the only approach that

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Speaker 1: matters for investment and growth. And that's why the challenges

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Speaker 1: now how to move towards an economy and policy making

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Speaker 1: that is looking into the long run, that is having

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Speaker 1: a flexibility of the economy, that has structural policies, that

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Speaker 1: understands that in order to grow, you need to be

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Speaker 1: part of the global system, that understands that trade is

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Speaker 1: a privilege that everyone should be gaining from, etcetera. But

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Speaker 1: we have this year theme, my theme populism. Trump's dovo

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Speaker 1: certainly not original, many other people have picked up on this.

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Speaker 1: How do policy makers, through the prism of their economists

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Speaker 1: and advisors deal with populism? It's just simply a search

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Speaker 1: for economic growth, isn't it? Where it is sells for

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Speaker 1: economic growth. But I would add two adjectives search for

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Speaker 1: sustainable economic growth, namely medium term perspective and search for

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Speaker 1: and inclusive economic growth, namely that the benefits from growth

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Speaker 1: are shelled. If we miss on any of these two

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Speaker 1: inclusiveness and medium term approach sustainability, then we will really

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Speaker 1: miss the boat. And it is the responsibility of policy makers,

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Speaker 1: of the media, of educators alike to shift the narrative

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Speaker 1: and debate away from the protectionism and populism towards more

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Speaker 1: concrete issue. Let me give you an example. When you

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Speaker 1: talk to people who are saying I want to have protection,

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Speaker 1: is against trade, I don't want the globalization, etcetera, ask them,

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Speaker 1: are you really against the benefits from trade? They will

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Speaker 1: tell you owners, I want the benefits. So what are

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Speaker 1: you against? I am against some of the negative consequences

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Speaker 1: that trade unchecked may entail. Maybe not everyone will benefit. Okay,

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Speaker 1: then shift the debate to this, how do we make

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Speaker 1: sure that society shows and how do we do that?

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Speaker 1: How do we affect a policy that meets the president

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Speaker 1: elects demands and the people that supported him, and it

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Speaker 1: gives us a policy for those left bend. Absolutely, it

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Speaker 1: has to be at least two dimensions. Number One, you

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Speaker 1: need to ease the transition period. This means trade adjustment assistance.

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Speaker 1: This means job retraining, This means making people more capable

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Speaker 1: to accommodate the changes. Not good enough. The very fact

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Speaker 1: that now, years after an after, there are those who

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Speaker 1: say that NAFTA was a bad thing is a testimony

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Speaker 1: to the debate. So instead of saying afterwards a good

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Speaker 1: thing of a bad thing, which goes to the political debate,

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Speaker 1: we really need to say, how do we ensure inclusiveness?

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Speaker 1: Tom King, they're talking with Jacob Frankl, the chairman of

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Speaker 1: Japing Morgan Chase International, chairman of the Ward trustee in

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Speaker 1: the Group of thirty as well and former governor of

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Speaker 1: the Bank of Israel in Davos, Switzerland at Annual Meaning

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Speaker 1: of the World Economic Form. Let's do this, David, Let's

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Speaker 1: uh move forward to the quiet strength of Davos, which

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Speaker 1: is year after year after year, persistent research. No one

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Speaker 1: has done that better than Richard Edelman. Of course, this

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Speaker 1: company is dealing in public relations, usually for corporations who

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Speaker 1: blown up their relations, and they assistance in moving forward.

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Speaker 1: Richard Edelman very good at that. But for me, the

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Speaker 1: Edelman Trust Barometer is an important document. And no there's

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Speaker 1: no year which is like this year for the distrust

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Speaker 1: that's out there, Richard Edlman, wonderful to have you here

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Speaker 1: your annual visit. Where As she said me, you know,

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Speaker 1: two weeks ago and said, Tom, it's an extraordinary lack

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Speaker 1: of trust out there. What is the telling thing in

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Speaker 1: the sixty six pages of your analysis. Well, trust is

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Speaker 1: imploded this year, Tom, in the institutions, but particularly in media.

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Speaker 1: And it's actually seen that the media has become part

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Speaker 1: of the elite um. There's a world of self reference,

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Speaker 1: that the media is an is an echo chamber in fact,

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Speaker 1: for whether you're right or left, and that you don't

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Speaker 1: really want to read or hear anything that you don't

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Speaker 1: agree with. Is the distrust out there contained within the

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Speaker 1: United States, Or when we talk about global populism, is

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Speaker 1: there a contagion effect? Or is each nation discreet in

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Speaker 1: their barometer? So you know, this year is stunning in

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Speaker 1: the number of countries that have moved beyond just loss

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Speaker 1: of trust in their institutions to a loss of faith

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Speaker 1: in the system. More than half the countries have have

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Speaker 1: lack of confidence in fairness, in the extent to which

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Speaker 1: they can make a better life for their families in

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Speaker 1: the future, and in their leaders. They want change If

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Speaker 1: you were to show the Edelman Trust Barometer to the

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Speaker 1: President elect, what would you point out to Donald Trump?

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Speaker 1: I would say that in a way, he reflects the mood,

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Speaker 1: which is um deep socio and economic fears that people

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Speaker 1: are looking behind themselves about to being replaced by robots,

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Speaker 1: about jobs being outsourced, and that they want to have

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Speaker 1: a direct and honest conversation with their employer about their

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Speaker 1: economic future. Are they going to be better off in

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Speaker 1: the future? You know? I look, Richard Edelman, the granularity

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Speaker 1: of your report and the charm of it is. It's

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Speaker 1: year after year. I remember a couple of years ago.

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Speaker 1: I think even CEOs worsen politicians, which is hard to

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Speaker 1: fathom within the expertology that's your review. How does CEO's

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Speaker 1: lineup this year? The Trust and CEOs fell apart time

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Speaker 1: We're back to two thousand nine, and I think it's

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Speaker 1: a matter of compensation and also just disappointment in this

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Speaker 1: narrow focus on shareholder value as opposed to fix the

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Speaker 1: problems of society and tell me the truth about my job.

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Speaker 1: Let me bring in my colleague in New York, David Gura,

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Speaker 1: with Richard Edelman. Please, yeah, try you don't mince words.

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Speaker 1: So you say there's a complete loss of faith in

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Speaker 1: the system and and and that's a bold, sweeping statement.

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Speaker 1: How did we get here? And how reversible is this

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Speaker 1: do you think? I think it's a long, slow rebuild.

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Speaker 1: I think trust is lost easily UM and its confidence

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Speaker 1: is hard to bring back. And it's going to be

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Speaker 1: each company, one at a time showing that in fact

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Speaker 1: it does give good jobs, that it does reinvest, and

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Speaker 1: that it does actually make communities better. And I also

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Speaker 1: think that UM trust is going to be done by employees.

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Speaker 1: That you've got to tell the employees because the new

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Speaker 1: crazy is that it's a person like you, much much

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Speaker 1: more credible than the CEO or of the government official

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Speaker 1: twice as credible. Help us with with how this is

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Speaker 1: setting the backdrop for conversations at Davos. Of course they're

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Speaker 1: ahead of the event. There are always articles about what's

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Speaker 1: going to be discussed, how relevant the World Economic Forum

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Speaker 1: meeting is going to be, how much are people They're

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Speaker 1: talking about credibility and ways to sort of bridge this gap.

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Speaker 1: They understand that business is the last retaining wall in

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Speaker 1: a tsunami, that the first was the Great Recession. Then

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Speaker 1: you had globalization. Now you have automation, so business in

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Speaker 1: a way for that uncommitted group, half the people have

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Speaker 1: lost faith in the system, about a third or sort

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Speaker 1: of uncommitted. In fifteen half confidence. That uncommitted group thinks

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Speaker 1: that business is actually the most credible force. So now

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Speaker 1: is the time for ceo s to stand up. Don't

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Speaker 1: do what you usually do, which is duck and wait. UM,

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Speaker 1: you've got to actually lead now and show that businesses

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Speaker 1: is good. Well, you're you're. What you're so good at

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Speaker 1: is the triage of the moment for our large companies.

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Speaker 1: When you say to CEOs you've got to re establish

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Speaker 1: a communication with a public, what does that actually entel?

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Speaker 1: It means tom actually going to the employees first, UM

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Speaker 1: then also having a channel that allows customers and UM

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Speaker 1: and consumers to speak directly to the company. So for instance,

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Speaker 1: United Airlines has a thing called Airtime where people can

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Speaker 1: complain about service or UM employees can complain about working conditions,

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Speaker 1: and all of this has made public. The level of

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Speaker 1: transparency and the response over time is something that's learned

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Speaker 1: from the sharing economy, from Uber Airbnb. That's a huge

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Speaker 1: positive and it's been really critical to United's recovery of

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Speaker 1: trust Richard Elemen, do people hunger for good dialogue? Do

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Speaker 1: they recognize there's a deficit here? Do they want something better?

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Speaker 1: Or have they gotten beyond that? Have they just given up? No?

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Speaker 1: I think that the business leaders here definitely have processed

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Speaker 1: UM that this populist movement is really scary for business,

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Speaker 1: that anti globalization and anti innovation, that people are nervous

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Speaker 1: in fact about new services, new products because it might

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Speaker 1: mean that they don't have good jobs or jobs at all.

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Speaker 1: So they want leadership and and the business leaders are

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Speaker 1: now talking about it. I look, and again, folks, I go,

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Speaker 1: I really urge you to go to the website of

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Speaker 1: Edelman and look at the Edelman Trust Barometer. Over to

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Speaker 1: our politicians, I can't fathom your account with the Trump

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Speaker 1: administration how Edelman helps the Trump administration forward. Do you

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Speaker 1: have a recommendation to our presidential tweeter? Do you what

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Speaker 1: would be the Edelman Council to our newly minted president

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Speaker 1: this Friday. I think that President Trump has to establish

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Speaker 1: a game plan and then show progress for it. UM

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Speaker 1: that he can't as a candidate UM just tweet his

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Speaker 1: way to UM satisfaction that people are gonna be holding

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Speaker 1: him to account, and it's not going to be just

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Speaker 1: getting forward to relocate its jobs back to Ohio. It

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Speaker 1: has to be a real plan of infrastructure and um

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Speaker 1: education and economic development and decent means by which to

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Speaker 1: renegotiate an AFTA or with the child. Set you up

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Speaker 1: because I knew what the answer would be. Now let

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Speaker 1: me let me get to what matters here, Richards, and

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Speaker 1: will come back. The core idea then is you have

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Speaker 1: to affect the policy. Can you do that with a

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Speaker 1: distrust that's seen within the barometer the Edeleman Trust Barometer. Look,

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Speaker 1: government is the least trusted institution in our study, and

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Speaker 1: it has to actually be done between business and government,

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Speaker 1: and it has to be seen as something that has

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Speaker 1: been um done by listening to the people. We have

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Speaker 1: to move from telling the people what's good for them

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Speaker 1: to doing things with the people and let them judge

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Speaker 1: a result. Richard Edelman with us with the accept I've

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Speaker 1: never I say this every year, but now I really

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Speaker 1: mean the idea of the Edelman Trust Barometer. I'll put

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Speaker 1: that out on social and as I have uh the

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Speaker 1: last few days, uh, and we'll go from there. David

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Speaker 1: just An extraordinary document and a pleasure to read every

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Speaker 1: year when it has launched the first day of Davos,

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Speaker 1: brought you by Bank of America Mary Lynch, dedicated to

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Speaker 1: bringing our clients insights and solutions to meet the challenges

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Speaker 1: of a transforming world. That's the power of global connections.

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Speaker 1: Mary Lynch, Pierce Federin Smith Incorporated Member s I p C.

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Speaker 1: A most wonderful panel this morning talking about the future

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Speaker 1: of finance and giving terrific perspective on the potential transactions

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Speaker 1: and combinations, and also on uh the Nation of America.

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Speaker 1: David Rubinstein the Carlisle Group, purely one of our great philanthropists.

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Speaker 1: I think the most wonderful thing you do is the

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Speaker 1: Redond Ford's Theater across the street from Ford's Theater. You

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Speaker 1: guys left extent the tragic room where the sixteenth President died,

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Speaker 1: but you placed a museum right next to it without

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Speaker 1: destroying the feel of it. Yes, Um, I was a contributor,

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Speaker 1: but I was not the principal person behind it. I

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Speaker 1: was on the board of it for a while. And interestingly,

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Speaker 1: the person who was the chairman of the capital campaign

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Speaker 1: that raised the money was a man named Rex Tillerson.

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Speaker 1: I don't know what's happened to him. I don't, but

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Speaker 1: I think he'll He'll do okay. How will he do okay?

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Speaker 1: A secretary of state? He has a different president than

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Speaker 1: the previous president. Well, Rex is a very smart person

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Speaker 1: and he's got a wealth of experience in dealing with

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Speaker 1: leaders around the world. So I think he will be

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Speaker 1: assuming he's confirmed, as I believe he will be. I

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Speaker 1: think he'll be a very strong secretary of State. Remember

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Speaker 1: he was recommended by one of my former partners, Jim Baker,

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Speaker 1: and Jim Baker has pretty good judgment about these things.

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Speaker 1: If I look at the so called Trump reflation and

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Speaker 1: the idea of a boost and optimism, does that mean

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Speaker 1: a boost and internal rates a return for those that

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Speaker 1: invest privately, whether it's private equ venture capital, or good

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Speaker 1: old all American mergers and acquisitions. I hope always springs eternal,

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Speaker 1: of course, but there's no doubt that if you have inflation,

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Speaker 1: inflation which we haven't had much of, that will probably

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Speaker 1: produce higher rates of return. Whether they're higher in real

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Speaker 1: terms or not, obviously uh to be determined. But I

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Speaker 1: think when you have higher growth rates generally produce greater

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Speaker 1: economic activity and that generally produces higher rates of return.

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Speaker 1: So hopefully if this all can come about, it's not

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Speaker 1: easy to do. Remember, we have a twenty trillion dollar

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Speaker 1: economy and there's no history of twenty trillion dollar economies

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Speaker 1: growing at five percent a year. So if we can

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Speaker 1: get it slightly better than where it is, it's it's good.

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Speaker 1: But a twenty trillion dollar economy is harder to move

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Speaker 1: than a ten trillion dollar economy. Dave Rubinstein, there were

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Speaker 1: two big speeches this morning. I don't need to tell

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Speaker 1: you that, but the UK Prime Minister to reason they spoke,

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Speaker 1: as well as the Chinese president jumping there in Davos.

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Speaker 1: When you when you think about the global economy, which

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Speaker 1: of those two was was most important? What were you

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Speaker 1: listening for today? They're both important figures, of course, Uh

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Speaker 1: president of China. A president of China had never come

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Speaker 1: to Davas before, and President She therefore got a great

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Speaker 1: deal of attention for coming. And what he was really

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Speaker 1: saying is something that would not have been UH expected

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Speaker 1: of a Chinese leader to say ten or twenty years ago,

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Speaker 1: which is that globalization is very important and that China

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Speaker 1: thinks that the world order should be respected in some

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Speaker 1: respects UM. I think that Theresa May was saying that

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Speaker 1: Brexit is going to occur at some point and that

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Speaker 1: she's prepared to implement that. UM. Time will tell whether

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Speaker 1: how how easy it will be to do that. It's

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Speaker 1: a complicated negotiation, as we know, and and the courts

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Speaker 1: have ruled in England that the Parliament has to vote

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Speaker 1: on it before it can actually occur, and so I

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Speaker 1: don't know you know when that will occur. Tom mentions

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Speaker 1: your your philanthropic giving. I think of your reverence for

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Speaker 1: history and American institutions, and I wonder what you're looking

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Speaker 1: at his in terms of US history. At this point.

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Speaker 1: This is such a pivotal moment. There's no no need

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Speaker 1: to underestimate that. What are you reading, what are you

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Speaker 1: thinking about at this point? Well, let me just mention

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Speaker 1: one thing that I'd like all the Americans and anybody

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Speaker 1: listening with to pay attention to. UM. The African American

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Speaker 1: History and Culture Museum was opened a few months ago

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Speaker 1: in washing d C. It is the museum that was

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Speaker 1: conceived by John Lewis, or at least that he was

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Speaker 1: the person who introduced legislation was signed by George W. Bush.

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Speaker 1: Five hundred and forty million dollars was the price tag.

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Speaker 1: Two d seventy million came from taxpayers, two hundred seventy

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Speaker 1: from philanthropic gifts them throughout the United States, and many

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Speaker 1: many of Americans contributed to that, and many Americans gave

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Speaker 1: artifacts and other things. We now have people going to

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Speaker 1: that museum, and it was expected that the average person

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Speaker 1: going to that museum would spend an hour and a

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Speaker 1: half touring the museum. The average person is now spending

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Speaker 1: six and a half hours, six and a half hours

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Speaker 1: because it's such a life changing experience to see the

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Speaker 1: history of African Americans in this country, from four hundred

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Speaker 1: years of history, through slavery, through Jim Crow Laws, through

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Speaker 1: the great accomplishments of African Americans. And I recommend to

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Speaker 1: all Americans, white, black, or any color to spend some

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Speaker 1: time touring that museum. I regarded as the best museum

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Speaker 1: right now uh of its type in in the United States.

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Speaker 1: I want to talk about populism, and we only have

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Speaker 1: a minute left. People just assume you grew up with

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Speaker 1: a silver spoon in your mouth. I don't know why

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Speaker 1: that happened, but they just assumed David Rubinstein couldn't be

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Speaker 1: that successful with with with without if you didn't you

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Speaker 1: grew up a real basic life. Well, my parents were

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Speaker 1: not college or high school graduates. My father worked in

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Speaker 1: the post office. Uh. I got very lucky in life

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Speaker 1: and um now giving back like the anger that you

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Speaker 1: see right now, David, within Americas, well, when I was

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Speaker 1: growing up, I did believe in the American dream that

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Speaker 1: you could work hard and rise to the top. Now

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Speaker 1: many people don't believe in that. They believe that they

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Speaker 1: are captain there for the Therefore, the social mobility that

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Speaker 1: I benefited from is not present. And clearly I had

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Speaker 1: some advantages. But uh I, uh, you know, I don't

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Speaker 1: know that everybody feels that they can rise to the

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Speaker 1: top as they as they as I did. Thank you

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Speaker 1: for visiting us with today and again thank you for

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Speaker 1: my David Rumstein is where the Carlisle crew from New

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Speaker 1: York from Davos, this is Bloomberg back to Davos to

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Speaker 1: Tom Keane where we can hear the steam coming out

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Speaker 1: of your mouth. A Tom, it's cold there. It is

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Speaker 1: cold here. It's ten degrees colder last year, and a

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Speaker 1: little bit of snow not record snow that we've seen

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Speaker 1: in my thirteen years here. But it is a winter wonderland.

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Speaker 1: And I would say, David, the key early theme is

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Speaker 1: what we knew uncertainty. But I can't begin to tell

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Speaker 1: you the level of uncertainty to confront it last night

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Speaker 1: on the trip through Zurich was just remarkable. We have

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Speaker 1: a special guest. There are very few sons that pull

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Speaker 1: this off. Paul Jacobs did it. His father, to full disclosure,

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Speaker 1: was one of my o There's heroes and engineering out

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Speaker 1: of New Bedford, Massachusetts and Cornell to San Diego. And

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Speaker 1: then there was this company two decades ago that started

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Speaker 1: It has something to do with technology, and the Sun

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Speaker 1: actually said hey, I'll do this too. He's a double

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Speaker 1: E out of Berkeley. Paul Jacobs joined us down. What

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Speaker 1: was that like? Was there a point where your father

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Speaker 1: sat you down in your seventeen and said you don't

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Speaker 1: want to do this now? He was actually always interested

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Speaker 1: in me being in engineering, and so you know, he

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Speaker 1: just did things to make sure I got interested in

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Speaker 1: and I worked there every summer. Uh. You know, when

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Speaker 1: I was in grade school, high school and I learned

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Speaker 1: how to program early on. Did you use a slide

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Speaker 1: rule or were you after that in early days? Yeah?

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Speaker 1: Old enough, Yeah, I had to use the slide rule

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Speaker 1: in the old things. Tell me about the people here,

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Speaker 1: toss around the phrases. You and your father have lived

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Speaker 1: technology innovation, and I find engineers the hair curls when

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Speaker 1: they see the usage of today. What does technology mean

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Speaker 1: for Paul Jacobs? Oh, technology is the way that we

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Speaker 1: take an idea out of our head, something that we

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Speaker 1: think about, and we turn it into reality and affect

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Speaker 1: people's lives. And the coolest thing about Qualcom is that,

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Speaker 1: you know, we thought we were going to affect everybody

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Speaker 1: in the world's lives with this new technology, and we're

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Speaker 1: actually able to execute and make that happen. Let me

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Speaker 1: bring in my colleague in New York, David Gurrow, happened

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Speaker 1: to go to Cornell, Thanks, sir, Iwin Jacobs. David Gurra, Yeah,

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Speaker 1: very proudly. Here, Paul Jacobs, let me ask you about

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Speaker 1: so where chip making is headed. I know that you

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Speaker 1: unveiled your plans for five G recently at c e S.

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Speaker 1: Talk about adoption. Uh, A lot of the world still

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Speaker 1: has not yet adopted four G technology. You're talking about

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Speaker 1: five G. How quickly can you move along with something

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Speaker 1: like that? Well, so five G is going to be

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Speaker 1: driven by the end markets. So you got the Koreans

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Speaker 1: who want a version of five G in time for

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Speaker 1: the Winter Olympics, and then you kind of got the

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Speaker 1: standards process. It's going for the Tokyo Olympics in twenty twenty.

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Speaker 1: I'm not sure why Olympics are the catalysts how happened

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Speaker 1: to be, but anyways, so really cool stuff though, because

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Speaker 1: now you're gonna be able to do, you know, things

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Speaker 1: like virtual reality and fly drones around and get you know, uh,

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Speaker 1: telemetry off of people's bodies to you know, see how

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Speaker 1: they're We tried that last night, I want to ask.

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Speaker 1: But anyways, so but the interesting thing about five G though,

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Speaker 1: is that it's going to go not just into the

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Speaker 1: phones and the tablets that we carry around, but into

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Speaker 1: all other kinds of devices, whether it's sensors in the

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Speaker 1: world around us, whether it's cars or as I said,

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Speaker 1: drones and robots and uh, you know, all sorts of things.

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Speaker 1: And so we just did a study that said but

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Speaker 1: by the time comes around, you know, it'll have been

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Speaker 1: integrated wireless connectivity will be integrated to all these different devices,

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Speaker 1: and it's gonna create an excess of twelve point three

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Speaker 1: trillion dollars of incremental benefit to all these other industries

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Speaker 1: that that will make use of it. Paul, And we

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Speaker 1: know about Moore's Law, and I wonder what the biggest

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Speaker 1: challenge right now is to to chip making, to getting

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Speaker 1: more advanced chips. I mean, look, Moore's Law, we still

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Speaker 1: have it progressing, but it's slowing down a little bit

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Speaker 1: from an economic standpoint, and we are getting close to

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Speaker 1: the physical limits of More's law. And I was just

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Speaker 1: on a panel for the White House the previous administration,

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Speaker 1: uh talking about you know, what are the implications of

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Speaker 1: that and and how do we do moonshots to sort

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Speaker 1: of uh incentivize the industry to come up with the

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Speaker 1: next new thing. How do we go from where we

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Speaker 1: are and how do we keep it going? And there's

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Speaker 1: an analogy with what happened in wireless. We got to

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Speaker 1: a point where we sort of made every radio link

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Speaker 1: as good as it could and we had to then

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Speaker 1: change the network. We had to make the network denser

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Speaker 1: to get more data down to your device. So we'll

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Speaker 1: have to do something different for chips. Whenever the lads

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Speaker 1: to Apple Toy comes out. I'm always amazed how the

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Speaker 1: media doesn't about the Qualcom world of technology around it.

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Speaker 1: In all, one of the things we do talk about

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Speaker 1: what you've got in your cool new not time folks

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Speaker 1: for Qualcom shameless play the snap Dragon eight, three, five

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Speaker 1: and next gen processor made for power users. But there's

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Speaker 1: still batteries. Tell me about what you're doing about what

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Speaker 1: every parent knows, which is we can take a room

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Speaker 1: in the house and make it a battery dumping ground

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Speaker 1: for our kids and everything. What are you doing about

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Speaker 1: lithium batteries and that? Yeah, I mean there hasn't been

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Speaker 1: as much progress, for sure in the battery technology as

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Speaker 1: we would like. We hadn't done some investments in battery

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Speaker 1: companies to try and improve that situation, but it's slow.

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Speaker 1: And Uh. The other thing is we try the other side,

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Speaker 1: which is to continue to make the chips more and

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Speaker 1: more power efficient. We moved to the latest generation of

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Speaker 1: integrated circuit technology to to do that, but of course

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Speaker 1: people also want more processing. When you want to do

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Speaker 1: virtual reality or more graphics, ben you're gonna use up

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Speaker 1: more battery life. So there's always this balance between what

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Speaker 1: we can do in terms of lowering power consumption and

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Speaker 1: what the consumer demands in terms of increased performance. Uh.

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Speaker 1: One other thing we've been trying is why I was charging.

431
00:25:14,600 --> 00:25:16,440
Speaker 1: I want to get this in if I could in

432
00:25:16,480 --> 00:25:19,080
Speaker 1: the time that we've got a very quickly here. Stem

433
00:25:19,160 --> 00:25:21,639
Speaker 1: is all the rage? Did you have to take liberal

434
00:25:21,720 --> 00:25:24,199
Speaker 1: arts as you wandered through Berkeley? I actually wanted to.

435
00:25:25,080 --> 00:25:27,080
Speaker 1: One thing that was kind of funny at Berkeley was

436
00:25:27,440 --> 00:25:29,320
Speaker 1: I actually was a good writer. When I went in

437
00:25:29,359 --> 00:25:31,000
Speaker 1: and I tried to get into an English class. They

438
00:25:31,000 --> 00:25:32,960
Speaker 1: didn't want an engineer in the English class. But I

439
00:25:33,040 --> 00:25:36,520
Speaker 1: took some arts classes and I'm doing I'll have to

440
00:25:36,600 --> 00:25:38,920
Speaker 1: leave it there, Paul Jacobs, thank you so much. With

441
00:25:39,200 --> 00:25:57,120
Speaker 1: qualcom from Davos. He has been, without question, the most

442
00:25:57,240 --> 00:26:02,359
Speaker 1: interesting person on Wall Street, UH, for any number of months.

443
00:26:02,440 --> 00:26:05,119
Speaker 1: It is one thing to find a candidate in politics,

444
00:26:05,200 --> 00:26:09,760
Speaker 1: as another one to get way out front of everybody else,

445
00:26:09,880 --> 00:26:13,920
Speaker 1: and Anthony Skermuchi did that with one Donald Trump long

446
00:26:13,960 --> 00:26:18,199
Speaker 1: ago and far away. It is simplistic to say that

447
00:26:18,280 --> 00:26:21,240
Speaker 1: he has taken the position that Valerie Jarrett held in

448
00:26:21,320 --> 00:26:26,000
Speaker 1: the Obama administration. Nobody believes for a minute that Anthony

449
00:26:26,040 --> 00:26:30,440
Speaker 1: Skermucchi will only be director the Office of Publicly aison

450
00:26:30,480 --> 00:26:32,960
Speaker 1: he can't even pronounce it publicly is on an inter

451
00:26:33,080 --> 00:26:36,720
Speaker 1: governmental affairs as well. Anthony skermuch he joins us this morning.

452
00:26:36,720 --> 00:26:39,800
Speaker 1: Good morning, we picked the French name for an American job. Well,

453
00:26:39,840 --> 00:26:43,880
Speaker 1: I think so. But what will you do? What will

454
00:26:43,880 --> 00:26:47,520
Speaker 1: you do January? Well, I'd like to start January twenty,

455
00:26:47,680 --> 00:26:50,760
Speaker 1: So I'm hoping right after the inaugural of many of

456
00:26:50,800 --> 00:26:53,159
Speaker 1: us will be in the West wing. Uh, starting to

457
00:26:53,200 --> 00:26:56,880
Speaker 1: put the apparatus of government together. But I think the

458
00:26:56,960 --> 00:26:59,639
Speaker 1: number one objective for me, Tom and I said this

459
00:27:00,200 --> 00:27:02,600
Speaker 1: last week, is to try to help people see the

460
00:27:02,640 --> 00:27:05,600
Speaker 1: president elect the way we see him. Uh, members of

461
00:27:05,640 --> 00:27:09,320
Speaker 1: his staff, members of his family. Uh. He's a very caring,

462
00:27:09,440 --> 00:27:13,720
Speaker 1: generous guy, very thoughtful. UM. He's got a great vision

463
00:27:13,840 --> 00:27:16,240
Speaker 1: and great direction of where he wants to take things.

464
00:27:16,800 --> 00:27:20,280
Speaker 1: We had a fantastic meeting yesterday. Unfortunately I wasn't there

465
00:27:20,280 --> 00:27:22,200
Speaker 1: because I was in route to Davos, but we had

466
00:27:22,200 --> 00:27:26,200
Speaker 1: a great meeting with Martin Luther King the third. Uh.

467
00:27:26,400 --> 00:27:29,399
Speaker 1: Jim Brown said recently that he sees him as the

468
00:27:29,760 --> 00:27:33,520
Speaker 1: quarterback of the inner city redevelopment. I think it's a

469
00:27:33,560 --> 00:27:36,320
Speaker 1: lot of fun things that Caden still plays against that

470
00:27:36,920 --> 00:27:39,679
Speaker 1: just in the last X number of hours a thirty

471
00:27:39,720 --> 00:27:43,240
Speaker 1: five pc terrifying BMW. The things that Donald Trump says

472
00:27:43,840 --> 00:27:48,679
Speaker 1: help our our listeners worldwide with the process. After he

473
00:27:48,880 --> 00:27:53,080
Speaker 1: says something to do, the advisors get together and say,

474
00:27:53,119 --> 00:27:56,479
Speaker 1: excuse me, sir, go in this direction, how is that

475
00:27:56,560 --> 00:27:59,280
Speaker 1: process working out? I don't. I don't think so specifically

476
00:27:59,359 --> 00:28:02,600
Speaker 1: the BMW. You just so that Americans understand what happens

477
00:28:02,600 --> 00:28:05,439
Speaker 1: is they're under a V A T tax system and

478
00:28:05,480 --> 00:28:10,320
Speaker 1: so they're they're effectively getting a rebate back on the

479
00:28:10,400 --> 00:28:12,480
Speaker 1: V A T to ship a car over to the

480
00:28:12,600 --> 00:28:15,760
Speaker 1: United States. In our system, because we have an income

481
00:28:15,800 --> 00:28:18,800
Speaker 1: tax and corporate income tax structure, we fix it day one.

482
00:28:19,560 --> 00:28:22,920
Speaker 1: I don't know if he can necessarily be fixed day one,

483
00:28:23,480 --> 00:28:26,160
Speaker 1: but there are border adjustment taxes that can be put

484
00:28:26,200 --> 00:28:29,280
Speaker 1: in place to level the playing field. We have an

485
00:28:29,320 --> 00:28:32,400
Speaker 1: eight hundred billion dollar trade deficit. Uh, there's no reason

486
00:28:32,480 --> 00:28:34,160
Speaker 1: why the United States needs to have an eight under

487
00:28:34,160 --> 00:28:37,720
Speaker 1: billion dollar trade deficit if we just equalize and create

488
00:28:37,800 --> 00:28:41,120
Speaker 1: symmetry in our trading relationship. So the President is saying

489
00:28:41,200 --> 00:28:44,800
Speaker 1: one thing, I think it's very specific let's make the

490
00:28:44,800 --> 00:28:47,240
Speaker 1: trade deals fair. Let me bringing my colleague in New York,

491
00:28:47,320 --> 00:28:51,720
Speaker 1: David Girl, with the Trump administration. David, it's great to

492
00:28:51,720 --> 00:28:53,720
Speaker 1: speak with you, and uh, you know, I I take

493
00:28:53,720 --> 00:28:55,280
Speaker 1: what you're saying that you want the American people to

494
00:28:55,320 --> 00:28:57,600
Speaker 1: see President Trump the way that that you see him,

495
00:28:57,720 --> 00:29:00,000
Speaker 1: help us understand where the humility is. I look at

496
00:29:00,000 --> 00:29:01,840
Speaker 1: the Wall Street Journal this morning, and I see the

497
00:29:01,880 --> 00:29:04,840
Speaker 1: outgoing director of the CIA really taking the President elect

498
00:29:04,840 --> 00:29:08,200
Speaker 1: to task here for imputing the integrity of of folks

499
00:29:08,200 --> 00:29:10,400
Speaker 1: in the intelligence community. I look at what the president

500
00:29:10,400 --> 00:29:14,120
Speaker 1: elect tweeted about John Lewis, virtual punches on Twitter towards him,

501
00:29:14,160 --> 00:29:16,720
Speaker 1: a guy who's taken real punches in the South during

502
00:29:16,720 --> 00:29:19,800
Speaker 1: the civil rights movement. Where's the humility? Would you like

503
00:29:19,840 --> 00:29:21,840
Speaker 1: to see more humility? There? We are we miss reading

504
00:29:21,880 --> 00:29:24,520
Speaker 1: what he's doing. Should should he be demonstrating more of

505
00:29:24,520 --> 00:29:27,280
Speaker 1: it on Twitter and and just publicly generally. So let's

506
00:29:27,360 --> 00:29:30,040
Speaker 1: let's let it's interesting the way you're characterizing all that,

507
00:29:30,080 --> 00:29:33,440
Speaker 1: So let me recharacterize it for the listener. For whatever reason,

508
00:29:33,480 --> 00:29:36,320
Speaker 1: Congressman Lewis decided that he wanted to say that the

509
00:29:36,360 --> 00:29:42,000
Speaker 1: election of President Donald J. Trump was illegitimate. So I

510
00:29:42,040 --> 00:29:44,320
Speaker 1: guess it's you're you're saying that he should not have

511
00:29:44,400 --> 00:29:47,120
Speaker 1: responded to that and the way they responded to it.

512
00:29:47,160 --> 00:29:51,280
Speaker 1: But what do we know about the president elect is

513
00:29:51,320 --> 00:29:54,200
Speaker 1: that he doesn't really like taking that sort of stuff.

514
00:29:54,200 --> 00:29:57,080
Speaker 1: You know, when when Meryl Streep is saying the nonsense

515
00:29:57,120 --> 00:30:00,640
Speaker 1: that she said ten or twelve days ago, he responding

516
00:30:00,680 --> 00:30:06,080
Speaker 1: to it. That's something that he's doesn't change. Janus, Let's

517
00:30:06,080 --> 00:30:08,440
Speaker 1: see if it does. You know, before I say if

518
00:30:08,480 --> 00:30:10,560
Speaker 1: it is or it is, it's his. It's up to

519
00:30:10,640 --> 00:30:12,880
Speaker 1: him to make the decision whether it's going to But

520
00:30:12,880 --> 00:30:16,920
Speaker 1: but when you talk about humility, I think humility is

521
00:30:16,960 --> 00:30:19,920
Speaker 1: often expressed in your children. I think humility is often

522
00:30:19,960 --> 00:30:23,480
Speaker 1: expressed in your family and in your grandchildren. This guy

523
00:30:23,560 --> 00:30:26,600
Speaker 1: is a very emotional guy. I knew he was moved

524
00:30:26,600 --> 00:30:28,880
Speaker 1: to tears on election night. I watched it. I was

525
00:30:28,920 --> 00:30:32,000
Speaker 1: there firsthand. Uh, this guy has an intense love for

526
00:30:32,040 --> 00:30:36,000
Speaker 1: the country. Whether people saw this or didn't see this.

527
00:30:36,040 --> 00:30:38,160
Speaker 1: And you were very nice in your opening remarks tom

528
00:30:38,360 --> 00:30:39,960
Speaker 1: to say that I saw it, but I didn't get

529
00:30:40,000 --> 00:30:42,600
Speaker 1: there as early as you suggested. But I got there

530
00:30:43,120 --> 00:30:48,480
Speaker 1: because he was identifying something in the population through his empathy. Uh.

531
00:30:48,520 --> 00:30:50,800
Speaker 1: There he is as a billionaire living in a very

532
00:30:50,920 --> 00:30:54,840
Speaker 1: large tower and probably the best location in midtown Manhattan.

533
00:30:55,240 --> 00:31:00,360
Speaker 1: But he understood the struggle. I don't but the good

534
00:31:00,360 --> 00:31:01,920
Speaker 1: news I get to hang out with him in the

535
00:31:01,960 --> 00:31:05,040
Speaker 1: best location free. But but my my point is is that,

536
00:31:05,120 --> 00:31:08,240
Speaker 1: like you say, humility, I see a lot of humility there,

537
00:31:08,280 --> 00:31:12,040
Speaker 1: but I also see em lency. He really understood what

538
00:31:12,080 --> 00:31:15,760
Speaker 1: was going on in working class communities and working class

539
00:31:15,800 --> 00:31:18,920
Speaker 1: families and and whether people want to hear this or not,

540
00:31:19,440 --> 00:31:23,440
Speaker 1: the democratic establishment that was their typical base. Uh, they

541
00:31:23,560 --> 00:31:26,640
Speaker 1: left them there for him to go in there. Well,

542
00:31:26,640 --> 00:31:28,719
Speaker 1: there's a lot of there's a lot of good evidence

543
00:31:28,720 --> 00:31:36,160
Speaker 1: of that, David continued, Please before I fry, Mr Scarmo repries,

544
00:31:36,200 --> 00:31:40,360
Speaker 1: because my feet are so. It was a long weekend,

545
00:31:40,360 --> 00:31:43,520
Speaker 1: of three day weekend, a lot of conversation about about Russia.

546
00:31:43,800 --> 00:31:45,520
Speaker 1: I'm sure that the president elect would like to move

547
00:31:45,520 --> 00:31:48,080
Speaker 1: on from this. You have Congress taking a renewed interest

548
00:31:48,120 --> 00:31:51,840
Speaker 1: here in what maybe a relationship between the campaign and Russia,

549
00:31:52,120 --> 00:31:56,000
Speaker 1: calls for committee hearings related to this. What's the president's

550
00:31:56,120 --> 00:31:58,120
Speaker 1: president elect approach going to be here? Why not just

551
00:31:58,120 --> 00:32:00,160
Speaker 1: go ahead with the hearings. Why not to deliver more

552
00:32:00,200 --> 00:32:05,080
Speaker 1: formal explanation. Well, I think there's a lot on the agenda.

553
00:32:05,400 --> 00:32:07,520
Speaker 1: I don't want to I don't want to speak necessarily

554
00:32:07,560 --> 00:32:10,560
Speaker 1: specifically about that. But if you look at the one

555
00:32:10,640 --> 00:32:14,080
Speaker 1: hundred day plan that the administration is putting together that

556
00:32:14,120 --> 00:32:18,080
Speaker 1: they want to project and execute over say the next

557
00:32:18,120 --> 00:32:20,920
Speaker 1: three months, um, I think they're just trying to measure

558
00:32:20,960 --> 00:32:24,240
Speaker 1: what is important, what's important to the American people, uh,

559
00:32:24,280 --> 00:32:26,760
Speaker 1: and doing a cost benefit analysis of that. I think,

560
00:32:27,240 --> 00:32:30,080
Speaker 1: you know, talking specifically about that, since I don't really

561
00:32:30,120 --> 00:32:33,920
Speaker 1: know the answer, I'd rather focus on the one day agenda.

562
00:32:34,160 --> 00:32:36,000
Speaker 1: Let me ask you about the news that's out on

563
00:32:36,200 --> 00:32:38,560
Speaker 1: social media now, which is your comments here at the

564
00:32:38,560 --> 00:32:43,640
Speaker 1: World Economic Form meetings about selling your business. Unlike Mr Trump,

565
00:32:43,640 --> 00:32:46,560
Speaker 1: who wants to somehow keep it going in different primitations,

566
00:32:47,080 --> 00:32:50,920
Speaker 1: you want to be free and clear of your Skybridge capital. Yeah,

567
00:32:50,960 --> 00:32:53,720
Speaker 1: well that's been public. It's been public on Bloomberg, Bloomberg Radio,

568
00:32:53,760 --> 00:32:57,239
Speaker 1: Bloomberg TV. H. I have Greg Fleming working on that

569
00:32:57,320 --> 00:33:00,960
Speaker 1: auction process for us. I think it's calm manating very soon.

570
00:33:01,600 --> 00:33:05,719
Speaker 1: The good news possibly possibly yeah, and so we have

571
00:33:08,400 --> 00:33:11,320
Speaker 1: I'm actually not being flipped about it. We're we're in

572
00:33:11,600 --> 00:33:15,920
Speaker 1: uh the last strokes of a few pens of a deal,

573
00:33:16,400 --> 00:33:17,960
Speaker 1: uh And I'll be very happy to announce it to

574
00:33:17,960 --> 00:33:20,640
Speaker 1: you Tom once it once it actually comes together. But

575
00:33:20,760 --> 00:33:23,280
Speaker 1: I don't want to do is because I'm a superstitious

576
00:33:23,320 --> 00:33:26,080
Speaker 1: person tell you something that has actually formulate. But we're

577
00:33:26,080 --> 00:33:29,560
Speaker 1: getting close. But the good news is for the company

578
00:33:29,600 --> 00:33:32,200
Speaker 1: and for the clients, once the release is out of

579
00:33:32,200 --> 00:33:35,120
Speaker 1: peoples seat directionly we're going. It's a very safe pair

580
00:33:35,120 --> 00:33:37,120
Speaker 1: of hands. You're bringing up an issue that which I

581
00:33:37,160 --> 00:33:40,520
Speaker 1: think people need to really understand. There's one person in

582
00:33:40,560 --> 00:33:45,560
Speaker 1: the American government that is un encumbered by those restrictions

583
00:33:45,600 --> 00:33:48,520
Speaker 1: and by those conflicts, and that is the American President.

584
00:33:48,520 --> 00:33:51,040
Speaker 1: And so I don't know why that is. I don't

585
00:33:51,080 --> 00:33:53,680
Speaker 1: know how that came into be, but he technically could

586
00:33:53,760 --> 00:33:56,720
Speaker 1: run his business and and and work in the old

587
00:33:57,720 --> 00:34:09,040
Speaker 1: Anthony Sam, thank you. Thanks for listening to the Bloomberg

588
00:34:09,040 --> 00:34:14,520
Speaker 1: Surveillance Podcast. Subscribe and listen to interviews on iTunes, SoundCloud,

589
00:34:14,960 --> 00:34:19,200
Speaker 1: or whichever podcast platform you prefer. I'm out on Twitter

590
00:34:19,280 --> 00:34:23,080
Speaker 1: at Tom Keene. David Gura is at David Gura. Before

591
00:34:23,120 --> 00:34:27,480
Speaker 1: the podcast, you can always catch us worldwide I'm Bloomberg Radio,

592
00:34:39,960 --> 00:34:43,480
Speaker 1: brought you by Bank of America. Mary Lynch. Dedicated to

593
00:34:43,560 --> 00:34:47,440
Speaker 1: bringing our clients insights and solutions to meet the challenges

594
00:34:47,600 --> 00:34:51,319
Speaker 1: of a transforming world. That's the power of global connections.

595
00:34:51,680 --> 00:34:56,400
Speaker 1: Mary Lynch, Pierce Feerin Smith Incorporated, Member s I p

596
00:34:56,600 --> 00:34:56,640
Speaker 1: C