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Speaker 1: Yeah, Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keen

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Speaker 1: with David Gura. Daily we bring you insight from the

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Speaker 1: best of economics, finance, investment, and international relations. Find Bloomberg

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Speaker 1: Surveillance on Apple Podcasts, SoundCloud, Bloomberg dot Com, and of course,

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Speaker 1: on the Bloomberg Steven Roach joins us now in our

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Speaker 1: Bloomberg Lemon three oh studios in the York. He's up

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Speaker 1: there with Tom. He's a senior fellow at the Jackson

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Speaker 1: Institute for Global Affairs at Yale University, former chairman of

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Speaker 1: Morgan Stanley Asia. And Steve I spose we should begin

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Speaker 1: here by talking about the People's Congress, which is I

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Speaker 1: said just concluded or is concluding invasion? What did you

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Speaker 1: hear over the course of this last week, if you

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Speaker 1: lent an ear to the full three and a half

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Speaker 1: hours of President She's I speech, what did you glean

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Speaker 1: from that? What did you glean from the personnel announcements

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Speaker 1: that we learned about throughout the week. Well, David, there's

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Speaker 1: a lot of discussion about um, the elevation of the

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Speaker 1: role of hijin ping, who the next leader is going

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Speaker 1: to be, who the composition of the top seven leaders

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Speaker 1: in China gona be I. You know, I don't want

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Speaker 1: to minimize any of that. But but to me, the

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Speaker 1: most significant um UH shift in in the Party Congress

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Speaker 1: really came from a reworking and an updating of the

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Speaker 1: ideological framework that underpins the entire policy debate in China. UH.

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Speaker 1: And it's it seems a bit obscure to Western observers,

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Speaker 1: but I think this was a big deal. UH. You know,

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Speaker 1: this is a group that is steeped in UM you know,

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Speaker 1: sort of the Chinese version of Marxism, and the principal

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Speaker 1: sort of analytical tenant of Marxism is what they call

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Speaker 1: the print stiple contradiction. They pose a problem UH and

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Speaker 1: then they tell you if the basically the inferences, if

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Speaker 1: the problem is not resolved, then the system will UH

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Speaker 1: decay and um uh revolution will occur. They have operated

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Speaker 1: with the same principal contradiction since night one. It was

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Speaker 1: one that reflected China's status as a developing poor nation.

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Speaker 1: And in this nineteen People's Congress, they changed the principal

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Speaker 1: contradiction UH to focus on UH the unbalanced and inadequate

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Speaker 1: development of China, implying that the focus for the foreseeable

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Speaker 1: future is to rebalance and to make UH the system

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Speaker 1: more adequate in providing the needs for the people. So

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Speaker 1: they've basically enshrined this whole policy approach towards the structural

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Speaker 1: rebalancing of their economy as part of the ideology that

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Speaker 1: drives the policy UH debate and the role of the

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Speaker 1: party and its policymakers play in shaping that. And that

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Speaker 1: may seem obscure and a little bit you know, um

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Speaker 1: uh obtuse, but UH they are a strategy driven system

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Speaker 1: and they've updated the strategy dramatically in this nineteen party Congress,

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Speaker 1: along with UH some of the personnel leadership changes that

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Speaker 1: you all are focusing on in the media. Steven wrote,

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Speaker 1: you mentioned the role of the party, and I wonder

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Speaker 1: how much that's changed here and what we've learned about

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Speaker 1: the role of the party going forward. I'm struck by

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Speaker 1: the long horizon that president she talked about getting to

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Speaker 1: center stage over the quarries of many decades. What role

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Speaker 1: is the party going to play in doing that. Have

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Speaker 1: we seen a sort of reaffirmation of its importance? Well,

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Speaker 1: she Jumping made it clear from day one when he

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Speaker 1: took over literally five years ago that UH this was

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Speaker 1: UM the moment of truth for the part. In his view,

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Speaker 1: the party had become unconnected with its primary mission of

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Speaker 1: the serving the the role H in its role is

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Speaker 1: the foundation the People's Republic of China and so addressing

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Speaker 1: party discipline through the anti corruption campaign party governance which

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Speaker 1: has been a big focus of Shijun Ping. UH. There's

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Speaker 1: a clear focus here in re energizing the party as

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Speaker 1: being UH the anchor of the People's Republic of China

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Speaker 1: for the foreseeable future. And this UM political Report that

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Speaker 1: was delivered last week UM by Shijun Ping to open

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Speaker 1: the nine Party Congress, UH stretches the party's horizon as

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Speaker 1: the shaper of of policies and strategies for the foreseeable future.

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Speaker 1: And as I said, by re recasting the so called

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Speaker 1: principal contradiction which lies at the heart of party focus,

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Speaker 1: there's been a big upgrading of the role that the

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Speaker 1: party plays in in designing strategy. What does this all

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Speaker 1: mean for the liberalization efforts we've heard talked about UH

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Speaker 1: and and UH that some have hoped for. We've seen

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Speaker 1: the upticking capital controls, for instance when it comes to

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Speaker 1: economic policy, or we to expect status quo out of

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Speaker 1: this the roach or or or are there going to

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Speaker 1: be changes to come? Perhaps not outlined here at this

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Speaker 1: this event over the last week, but you know, now

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Speaker 1: that this is out of the way, is it gonna

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Speaker 1: gonna lead the way to some some some more economic changes. Well, look,

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Speaker 1: I think, um, the one thing that's very clear, at

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Speaker 1: least to me and in the work I've done in

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Speaker 1: China over the last ten to fifteen years, is that

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Speaker 1: their emphasis on stability, whether it's political stability, economic stability,

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Speaker 1: social stability, or financial stability, uh is uh far more

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Speaker 1: important to them than it is to us. I mean,

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Speaker 1: you know, we roll the dice on stability and we

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Speaker 1: figure we've got the tools to clean up the mess

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Speaker 1: after periods of instability. China has has lived the mess

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Speaker 1: for a long part of its history and is determined,

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Speaker 1: uh never to go back to that. So when there

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Speaker 1: are threats to stability that require capital controls, require the

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Speaker 1: grunt requiring them to defer the liberalization of the M

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Speaker 1: and B or even the marketization of the economy, they

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Speaker 1: will they will put those initiatives on hold. I still

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Speaker 1: think they're committed to a a system that will eventually

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Speaker 1: be more um market determined in terms of guiding resource

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Speaker 1: allocation than they have now. But it's um uh not

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Speaker 1: not a process that they're focused on accelerating, irrespective of

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Speaker 1: some of the risks that I arise from time to

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Speaker 1: time with respect to UH stability. Tom here's some echoing

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Speaker 1: there of what the danis should LEVI told us yesterday,

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Speaker 1: echoing some similar themes there, Stephen Roach. One of the

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Speaker 1: great acclaims of your work at Morgan Stanley. Well, you

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Speaker 1: always said the hard landing wouldn't occur. What did the

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Speaker 1: hard landing people get wrong? The hard landing in China?

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Speaker 1: No tanzany come on next block. I think you know. Look,

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Speaker 1: the the hard landing view was always sort of taking

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Speaker 1: the problems as they evolved in the West and saying,

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Speaker 1: you know, we know what can go wrong. Look at

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Speaker 1: what happened to us. And China has got some characteristics

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Speaker 1: that are similar to ours, and ergo uh, let's let's

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Speaker 1: make the same call with respect to China. China is

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Speaker 1: a different system with different characteristics, and you can't presume

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Speaker 1: that the similarity he's of one economy are are are

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Speaker 1: going to necessarily follow the same trajectory of of another.

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Speaker 1: And I think it's the western view of China that

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Speaker 1: has really missed the mark. Is President g tilting closer

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Speaker 1: to the Chinese we knew of Mao and Choo and

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Speaker 1: Lay or is it ever farther away from our collective

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Speaker 1: memory of our ut no I look uh he he.

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Speaker 1: He clearly was anointed by the senior members of the

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Speaker 1: party to a level that has has not been granted

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Speaker 1: to any leader since Mao. But does that mean he's

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Speaker 1: the new Mao? Not at all. He's much more modern

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Speaker 1: and up to date UH, and focused on very different

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Speaker 1: things in Mao. We're focused with Stephen Roach on China

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Speaker 1: and of course focused as well on the FED Derby.

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Speaker 1: He is one good to speak of of that, particularly

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Speaker 1: with Stephen Roach's UH coaching essays over the last decade. Uh.

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Speaker 1: Not inflation dynamics and not job dynamics, but asset dynamics.

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Speaker 1: And that has to something to do with the next

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Speaker 1: FED chairman and some would even say the next FED

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Speaker 1: Vice chairman as well. Good morning everyone, Tom Keene Michael

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Speaker 1: McKeon for David Gura here in New York, in Washington

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Speaker 1: as well right now. A conversation with the Secretary of

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Speaker 1: Commerce Wilburt Ross. Here is David Weston. President Trump has

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Speaker 1: proclaimed this National Minority Enterprise Development Week, and Secretary of

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Speaker 1: Commerce Wilburt Ross will We joined the President day at

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Speaker 1: the White House at an award ceremony with our colleagues

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Speaker 1: from radio. We now welcome Secretary Ross coming to Bloomberg

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Speaker 1: Television and Bloomberg Radio live from our Washington bureau. Welcome

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Speaker 1: back to the prob. Mr Secretary, Good to have you

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Speaker 1: back here. It's good to be on. So this this

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Speaker 1: week devoted to National Minority Enterprise Development, has been around

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Speaker 1: for some time. This is not the first time you

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Speaker 1: had the week. What's different this year from last year?

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Speaker 1: Why is this different under a Trump administration? Well, I

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Speaker 1: think it's different for several reasons. First of all, the

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Speaker 1: Trump administration is much more business oriented in general than

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Speaker 1: had been the previous administration. Second, many of the moves

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Speaker 1: that are being made, particularly in the tax area, will

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Speaker 1: directly benefit smaller companies um For example, most of those

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Speaker 1: are now LLC's or limited partnerships or some other form

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Speaker 1: of passed through income vehicle. The Trump administration is proposing

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Speaker 1: to cut the tax rate there from a peak of

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Speaker 1: the individual rate of thirty nine point six percent down

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Speaker 1: to second. These are young companies growing have to make

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Speaker 1: capital expenditures, so the ability to write off capital expenditures

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Speaker 1: immediately is going to be a very powerful boost to

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Speaker 1: their cash flow. The third thing is that by giving

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Speaker 1: awards to the folks that we will be doing today,

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Speaker 1: we're emphasizing some of these spectacular successes that individual minority

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Speaker 1: entrepreneurs have been able to achieve. Then some of them

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Speaker 1: are quite remarkable, but overall these tend to be relatively

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Speaker 1: small businesses. There in ninety six thousand, two hundred forty

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Speaker 1: six minority enterprises in the US that have paid employees.

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Speaker 1: Those entities have a total of about eight million employees

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Speaker 1: and one point one trillion of revenues, So there's plenty

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Speaker 1: of room for them to grow, and part of the

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Speaker 1: role of the m b d A is to help

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Speaker 1: facilitate that growth. That cooperates with the Small Business Association,

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Speaker 1: and then in terms of the exports, that cooperates with

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Speaker 1: another part of commerce, the Foreign Commercial Services, and those

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Speaker 1: have counterparts in a hundreds of odd cities that in

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Speaker 1: the sixty embassies overseas, so it's a very big comprehensive

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Speaker 1: package to try to help minority enterprises. So you refer

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Speaker 1: Mr Secretary some of the ways in which the tax

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Speaker 1: reform plan that's been suggested might help minority enterprises. One

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Speaker 1: of the issues I think in Washington today is what

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Speaker 1: parts of the overall outline are sure to survive and

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Speaker 1: which ones won't, the so called redlines. The two things

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Speaker 1: we've heard most specifically are middle class tax cuts and

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Speaker 1: taking the corporate rate down to which you refer to,

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Speaker 1: for example, is the pass through issue? Is that something

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Speaker 1: that really the White House will press for and insist upon,

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Speaker 1: will not compromise on. Well, it certainly is part of

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Speaker 1: the basic program, and it has been for quite some

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Speaker 1: little while. Um it's it's an important element because of

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Speaker 1: its impact on small business, and small business is also

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Speaker 1: impacted by another reform that the President intends to put in,

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Speaker 1: and that's the repeal of the death tax. It's bad

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Speaker 1: enough to have to die, you shouldn't be fined for

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Speaker 1: doing so. And that's a serious problem for small businesses,

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Speaker 1: family businesses, particularly farms, which tend to be relatively illiquid

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Speaker 1: and therefore have to be sold often just to pay

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Speaker 1: the tax. So there is a perception that as you

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Speaker 1: call the death tax the estate tax. Really, but if

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Speaker 1: it's the very very wealthy in the country, do you

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Speaker 1: disagree with that? Well, the reason that it benefits people

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Speaker 1: over a certain size is that everybody under that size

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Speaker 1: has already been exempted. So the question is is there

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Speaker 1: any fairness to having just one portion of the population

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Speaker 1: pay a death tax on values that largely have already

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Speaker 1: been taxed. Most private businesses start out with very little capital,

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Speaker 1: so by the time the entrepreneur dies, what's been built

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Speaker 1: up is retained earnings, on which tax has been paid,

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Speaker 1: and therefore it's a little unfair to tax that twice.

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Speaker 1: It may be unfair or not, but is it possible

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Speaker 1: to square the passion to get rid of the estate

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Speaker 1: tax on the one hand, with the press from middle

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Speaker 1: class tax counts. It doesn't sound like the estate tax

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Speaker 1: has much to do with the middle class. Well, there's

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Speaker 1: separate issues. But you could also argue, and we do argue,

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Speaker 1: that reducing the corporate taxes, both the normal C corporation

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Speaker 1: rate and the rate for the flow throughs, that also

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Speaker 1: benefits the middle class, because when you think about the

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Speaker 1: components of any businesses, costs, taxes, one component. Wages are

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Speaker 1: another component, and materials and equipment are another final component.

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Speaker 1: So to the degree that you have reduced the cost

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Speaker 1: of one, that's very logical to think that there would

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Speaker 1: be room to improve the amount allocated to some of

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Speaker 1: the others, particularly wages. It's just gonna thus far, what

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Speaker 1: we hear from the administration as well as capital hill

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Speaker 1: are the wonderful tax cuts everybody's going to get. There's

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Speaker 1: not as much talk yet, at least about how that's

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Speaker 1: going to be paid for. As sectary commerce is really

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Speaker 1: sort of the quarterback of the economic team for the

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Speaker 1: White House. How concerned are you about some things we

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Speaker 1: may have to do, such as cutting back on interest

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Speaker 1: rate to business interest rate deductions, such as cutting back

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Speaker 1: on the favorable tax treatment given to four one K.

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Speaker 1: Could that have an adverse effect in the economy. Well,

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Speaker 1: the President has announced that he intends to do away

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Speaker 1: with a lot of the special gimmicks that have resulted

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Speaker 1: in very low taxes for very high income bracket people.

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Speaker 1: For example, there's the discussion about not giving a deduction

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Speaker 1: for state and local income taxes, and the benefits of

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Speaker 1: that go to of the population. So that's one that's

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Speaker 1: very very oriented toward the upper brackets. And that's an

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Speaker 1: example of what the president is doing to reduce the discrepancies.

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Speaker 1: Rich Jonathan here always gret to catch up with you.

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Speaker 1: Senator Bob Cole Chris doing the rounds on the US

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Speaker 1: networks to day, and he said the following that President

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Speaker 1: Trump leaving tax Overholt of Congress would be the best

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Speaker 1: way for us to have success. What do you say

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Speaker 1: back to that, wilbur Well. The Congress is being asked

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Speaker 1: to draft the details of the programs. What the President

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Speaker 1: put forward is a framework, it's a conceptual framework. It's

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Speaker 1: his objectives. But there are lots and lots of details

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Speaker 1: to be ironed out. And that very appropriately is the

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Speaker 1: work of Congress because those committees have to do all

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Speaker 1: the little semi control collins, all the little commas, all

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Speaker 1: the little clauses, because that, at the end of the day,

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Speaker 1: is what makes or breaks the tax code. The constitutional

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Speaker 1: course ultimately gives it up to Congress to decide these

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Speaker 1: things are proposing from the Senate to sign. And that

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Speaker 1: since center Corker must be right. On the other hand,

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Speaker 1: have you ever seen major legislation passed the Congress without

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Speaker 1: firm and strong and persuasive leadership from the White House.

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Speaker 1: Don't we need that leadership? Are we getting that in

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Speaker 1: terms of this is what's important, this is what we'll

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Speaker 1: give up on. Well, the Affordable the so called Affordable

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Speaker 1: Care Act under the Obama administration certainly had relatively little

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Speaker 1: detailed guidance from the White House. It was basically done

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Speaker 1: in the Congress, and that's the biggest piece of legislation

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Speaker 1: from that administration. So what is the next step. What

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Speaker 1: is the timetable do you think, Wilbur Well, we're hopeful

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Speaker 1: to have this voted in by the end of this

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Speaker 1: calendar year, and the budget resolutions that have been going

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Speaker 1: through our precursor to that, because in order to get

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Speaker 1: the tax program through, we will need to avail ourselves

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Speaker 1: of reconciliation. Reconciliation means that you basically only need fifty

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Speaker 1: one votes, and given the very partisan nature of Congress

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Speaker 1: right now, anything that needs sixty votes is going to

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Speaker 1: be very very suspect. So the budget resolution and its

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Speaker 1: provision that there can be a deficit up to a

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Speaker 1: trillion five over the ten year CBO measuring period is

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Speaker 1: a very important start. Well. But just as a final question,

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Speaker 1: for you. The race for the FED chairs heating up,

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Speaker 1: and I've just wondered whether you've spoken to the President

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Speaker 1: about who you think would make the best FED chair

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Speaker 1: for this country. There have been discussions with a lot

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Speaker 1: of us and I'm not going to come and publicly

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Speaker 1: on it until the President makes his determination, but he's

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Speaker 1: asked for a wide variety of people to give him

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Speaker 1: their opinions and their rationals. It's again answer, but I

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Speaker 1: will put you on the spot. The front runners at

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Speaker 1: the moment seems to be John Taylor and Jay Powell.

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Speaker 1: Out of the two of them, would you be satisfied

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Speaker 1: with either? And do you have a preference. Well, as

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Speaker 1: I said, I don't think I'm going to be discussing

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Speaker 1: publicly the choices the President might make. It's a very

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Speaker 1: important decision. He's taking it very very seriously. He's doing

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Speaker 1: very considerable vetting. I'm sure he'll come up with a

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Speaker 1: well founded decision. Wilbert Ross, US Converse Secretary, thank you

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Speaker 1: very much, will be for being once today. Great to

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Speaker 1: have back, been good to be on again. We adore

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Speaker 1: bringing you the smartest people we can find on different topics.

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Speaker 1: On the victory lap known as t Mobile and the

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Speaker 1: path forward from Mr Lajare, H Craig Moffatt joins us

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Speaker 1: from Moffatt, Nathans and Craig, I have added to my

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Speaker 1: list of things I've gotten wrong in my career, Mr Lajare.

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Speaker 1: He was kind enough to retweet me the other day

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Speaker 1: I saw a clown in a pink T shirt. I said,

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Speaker 1: you've gotta be kidding me. That was a twenty and

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Speaker 1: I don't know where the stock is now, seventy our

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Speaker 1: sixty whatever it is. I got, along with a lot

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Speaker 1: of other people, Mr Lajare wrong. Why was he so

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Speaker 1: underestimated when he changed the phone business with a pink

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Speaker 1: T shirty morning time? You know, look, a T Mobile

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Speaker 1: has done a lot of things right, and it's but

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Speaker 1: but it's an interesting history, right Remember that um when

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Speaker 1: A T and T tried to buy T Mobile in

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Speaker 1: Mobile was in a lot of trouble. They were their

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Speaker 1: network was struggling, they didn't have enough capacity, and they

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Speaker 1: didn't have enough money. When that deal broke up, they

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Speaker 1: got a big check from A T and T as

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Speaker 1: a breakup fee, and they got a bunch of Spectrum

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Speaker 1: as a breakup fee, and that taught them started They

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Speaker 1: already had low prices. It got them started to to

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Speaker 1: improve the network, and then they merged with Metro PCs,

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Speaker 1: a reseller, gave them a bunch more spectrum, and right

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Speaker 1: around that same time they got the iPhone. Now, certainly

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Speaker 1: done deserves a lot of credit for for navigating those

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Speaker 1: waters so hopefully. Um but but in in a lot

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Speaker 1: of ways in retrospect, the setup was already there for

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Speaker 1: T Mobile to be successful. And one of the reasons

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Speaker 1: that history is so interesting is because if Sprint and

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Speaker 1: Tea Mobile do announce that they're going to try to merge,

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Speaker 1: they're going to claim they can't succeed as independent companies,

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Speaker 1: And the Department of Justice is going to point to

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Speaker 1: precisely history for T Mobile and say, I don't know,

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Speaker 1: it works pretty well for him, and and you know,

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Speaker 1: in some ways T Mobile's own success undercuts their ability

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Speaker 1: to to sell this merger. Why do they want to

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Speaker 1: merge now? I mean, what isn't it for Mr Lejarre,

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Speaker 1: since he seems to be succeeding on his own, well,

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Speaker 1: he would certainly emerge as the CEO of the larger company.

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Speaker 1: And um, let's be honest. In America's size, size has

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Speaker 1: pretty strong correlation with CEO compensation and UM and and

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Speaker 1: prestige and a lot of other reasons. But more importantly,

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Speaker 1: I think they these companies both genuinely believe that the

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Speaker 1: table stakes to be truly competitive keep rising, that as

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Speaker 1: we go into this next phase of so called five

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Speaker 1: G wireless, there's going to be a tremendous amount of

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Speaker 1: capital investment required, and that means a tremendous amount of

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Speaker 1: scale required UM And it probably doesn't make sense for

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Speaker 1: us to as a country to think about four disparate

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Speaker 1: networks trying to solve the problem of five G wireless,

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Speaker 1: and so something's got to change. And I think both

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Speaker 1: Sprint and T Mobile are are looking at a standalone

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Speaker 1: future and saying it's going to be really tough to

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Speaker 1: make this work as a company. That if if we

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Speaker 1: are independently each half the size of Verizon and a

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Speaker 1: T and T, can they do it? What do you

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Speaker 1: think the Justice Department? I mean, you you've outlined a

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Speaker 1: possible objection, But what do you think the Justice Department

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Speaker 1: ultimately says? You know, I don't know. It's it's really

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Speaker 1: a coin flip. I think under the Democrats you would

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Speaker 1: have said a merger has no chance. The Democrats were

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Speaker 1: pretty clear in saying we want four, not three. And

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Speaker 1: I mentioned a moment ago that the success that that

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Speaker 1: T Mobile has had as a standalone company by itself

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Speaker 1: undermines the proposition that you need to be larger in

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Speaker 1: order to compete. I think a lot comes down to

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Speaker 1: how the Department of Justice measures consumer welfare UM. If

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Speaker 1: if by the traditional measure, which is our price is

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Speaker 1: going to be higher or lower for consumers UM, the

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Speaker 1: deal probably doesn't succeed and would likely be rejected if

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Speaker 1: the d J expands the definition to say no. A

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Speaker 1: lot also depends on how successfully these companies can invest

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Speaker 1: in their network, and so what facilities can they provide

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Speaker 1: to consumers UM, then Niel has a better shot. And

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Speaker 1: I'm not sure Craig in your research notes at Sanford

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Speaker 1: Burns with Mofatt Nathan's in CRAG, I look at the

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Speaker 1: response of a triopoli, an oligopoly, a duopoly, all the

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Speaker 1: popoles we talked about, where is the Verizon? A T

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Speaker 1: and T response to the guy with a pink T shirt,

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Speaker 1: I don't see it? Is it there? Oh? Sure it's there,

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Speaker 1: and it's there in in in a number of ways.

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Speaker 1: So we just talked about two of the definitions of

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Speaker 1: competitive response and therefore consumer welfare, which are lower prices

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Speaker 1: and capital investment, and both of those things have happened

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Speaker 1: in spades from Verizon and A T and T. Look

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Speaker 1: in in the time since T Mobile got the iPhone

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Speaker 1: and really started with its aggressive so called uncarrier moves,

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Speaker 1: which are there a series of competitive moves that they've

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Speaker 1: made since really, UM the amount of usage per hands

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Speaker 1: at in the United States has grown by something like

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Speaker 1: a seventy compound annual growth rate, so it's up called

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Speaker 1: it sixteen times or something like that in seven years. UM.

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Speaker 1: The revenue per device against that sixteen or seventeen times

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Speaker 1: increase in in in throughput has gone down by about

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Speaker 1: five or six percent, So the price that Americans are

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Speaker 1: paying per gigabyte of data has dropped by some or

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Speaker 1: so ut been dropped by or so that's the T

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Speaker 1: Mobile effect, right. Verizon and A T T have had

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Speaker 1: to respond to the aggressive moves that T Mobile has

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Speaker 1: made UM in order to keep the customers they've already got,

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Speaker 1: and Verizon has had probably a little more success than

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Speaker 1: A T and T at doing that. UM and that

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Speaker 1: they're They're wireless metrics have been a little bit better

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Speaker 1: than A T and T s, but both companies have struggled,

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Speaker 1: and partly because of T Mobile, the wireless industry in

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Speaker 1: the United States is now shrinking um and that's where

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Speaker 1: I wanted to go. Correct give us by hold cell

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Speaker 1: on these three stocks. I mean, forget about you've got

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Speaker 1: to sell on that, But give me a bi hole

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Speaker 1: cell on Verizon T in Mobile, Well, let's start with

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Speaker 1: T Mobile and Sprint, because you can't think about those

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Speaker 1: as as separate businesses because the probability that they attempt

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Speaker 1: to merger is so high. So what you're really betting

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Speaker 1: on is whether the merger succeeds or not. That is,

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Speaker 1: whether it gets approved by the Department of Justice. And

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Speaker 1: and that's already there's already a tremendous amount in both

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Speaker 1: stocks for that merger. I happen to think it's much

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Speaker 1: more aggressively priced into Sprint than T Mobile, and hence

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Speaker 1: the different positions that we have on Sprint and Tea Mobile.

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Speaker 1: We've got to sell on Sprint and and T Mobile

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Speaker 1: looks to be about fairly valued for the odds. A

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Speaker 1: T and T is struggling for different reasons. A T

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Speaker 1: and T has made pretty aggressive moves away from wireless

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Speaker 1: to move into the media business. But the first move

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Speaker 1: they did, which was to spend sixty billion dollars on

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Speaker 1: direct tv UM in retrospect, looks very problematic, right because

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Speaker 1: direct TV is shrinking now. Um, they probably pay twice

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Speaker 1: what direct TV would be worth today. Um. And as

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Speaker 1: direct TV starts to now contract it is, it is

433
00:28:09,680 --> 00:28:12,800
Speaker 1: going to be a bigger and bigger drag on a

434
00:28:12,920 --> 00:28:15,399
Speaker 1: T and T um And so A T and T

435
00:28:15,640 --> 00:28:17,600
Speaker 1: looks to us to be in a in a much

436
00:28:17,640 --> 00:28:21,159
Speaker 1: more difficult position Verizon is, and we've we've got to

437
00:28:21,200 --> 00:28:24,239
Speaker 1: hold on a T and T um But I I

438
00:28:24,320 --> 00:28:27,040
Speaker 1: worry quite a bit about a T and T S prospect.

439
00:28:28,000 --> 00:28:30,800
Speaker 1: Verizon is still the closest thing to a pure play

440
00:28:30,840 --> 00:28:35,680
Speaker 1: and wireless, and um, well, it looks to us to

441
00:28:35,720 --> 00:28:38,720
Speaker 1: perhaps be a little bit undervalued and therefore probably the

442
00:28:38,760 --> 00:28:42,880
Speaker 1: most attractive name in in wireless. But I'm not jumping

443
00:28:42,960 --> 00:28:44,880
Speaker 1: up and down and screaming and saying this is an

444
00:28:44,880 --> 00:28:49,360
Speaker 1: incredibly cheap stock, but it's probably the best position as

445
00:28:49,400 --> 00:28:51,760
Speaker 1: a standalone player. Craig Moffatt, where this is half far.

446
00:28:51,840 --> 00:28:53,960
Speaker 1: We'll come back with Mr Moffatt and talk about the

447
00:28:54,000 --> 00:28:58,560
Speaker 1: rest of his space of Moffatt Nathanson as we can. Uh.

448
00:28:58,800 --> 00:29:02,520
Speaker 1: Just interesting. I put the chart yesterday of the moonshot

449
00:29:02,680 --> 00:29:05,080
Speaker 1: of T mobile versus what the others to have done

450
00:29:05,440 --> 00:29:11,120
Speaker 1: since Mr Lager took over a chart that speaks volumes.

451
00:29:22,880 --> 00:29:25,920
Speaker 1: Michael McKee and Tom Keenaner Studios in New York, David

452
00:29:25,960 --> 00:29:29,440
Speaker 1: Gurry in Washington, and David, I would suggest to you

453
00:29:29,600 --> 00:29:33,760
Speaker 1: that the sixty five miles from Fort Collins, Colorado to

454
00:29:33,920 --> 00:29:39,120
Speaker 1: Boulder is more than sixty five miles. Very few people

455
00:29:39,320 --> 00:29:44,040
Speaker 1: have made the cultural leap from the Colorado State University,

456
00:29:44,320 --> 00:29:47,360
Speaker 1: my alma mater. By the way, say hello to the

457
00:29:47,400 --> 00:29:50,120
Speaker 1: senator and asked him if he if he's been to

458
00:29:50,160 --> 00:29:53,080
Speaker 1: the new stadium. There we go. Co Gardner here with

459
00:29:53,160 --> 00:29:55,800
Speaker 1: me in in DC at Brick next event. I'll let

460
00:29:55,800 --> 00:30:01,720
Speaker 1: you answer that question, k right. I was one of

461
00:30:01,760 --> 00:30:03,800
Speaker 1: the guys that took the ram around the football field

462
00:30:03,880 --> 00:30:07,480
Speaker 1: before the touchdowns, and so it was a fun opportunity.

463
00:30:07,520 --> 00:30:10,080
Speaker 1: I have not and I regret saying this, been to

464
00:30:10,120 --> 00:30:12,360
Speaker 1: the new stadium. It is right across from the place

465
00:30:12,400 --> 00:30:14,320
Speaker 1: that I lived during college, though, so we've got some

466
00:30:14,320 --> 00:30:17,760
Speaker 1: pretty good parking already, very good core garden. Let me

467
00:30:17,760 --> 00:30:19,280
Speaker 1: ask you first of but we're here to talk about

468
00:30:19,760 --> 00:30:23,320
Speaker 1: the job's landscape, technology and jobs, and you've advanced something

469
00:30:23,360 --> 00:30:25,040
Speaker 1: called the Chance Act. Tell us a bit about that

470
00:30:25,200 --> 00:30:27,760
Speaker 1: and sort of what that can do to incentivize the

471
00:30:27,760 --> 00:30:29,720
Speaker 1: creation of more jobs in the tech Absolutely, you know

472
00:30:29,760 --> 00:30:32,080
Speaker 1: the conversations that started with Boulder and Fork Collumns. And

473
00:30:32,080 --> 00:30:33,640
Speaker 1: if you look at Boulder and Fork Collins, I mean,

474
00:30:33,680 --> 00:30:36,440
Speaker 1: these are two of the booming areas of our state,

475
00:30:37,040 --> 00:30:39,719
Speaker 1: in large part because of the incredible technology and corridor

476
00:30:39,800 --> 00:30:44,320
Speaker 1: that exists between you know, between Boulder Longmont for Collins.

477
00:30:44,360 --> 00:30:46,520
Speaker 1: But what we see in Colorado is a challenge between

478
00:30:46,560 --> 00:30:49,680
Speaker 1: matching the skills that we have about the jobs in

479
00:30:49,720 --> 00:30:53,080
Speaker 1: Colorado are so called middle skills jobs, about lack of

480
00:30:53,080 --> 00:30:56,000
Speaker 1: the skills to have those middle skills jobs, only the

481
00:30:56,000 --> 00:30:59,320
Speaker 1: skills to meet those middle skills jobs needs. And so

482
00:30:59,320 --> 00:31:01,440
Speaker 1: so what we've said is, hey, that's going to be

483
00:31:01,480 --> 00:31:03,160
Speaker 1: in the tech sector too. So we've figured out a

484
00:31:03,160 --> 00:31:06,120
Speaker 1: way to match sort of this skills need the skills

485
00:31:06,120 --> 00:31:08,560
Speaker 1: gaps with a Chance Act, which is about apprenticeships, which

486
00:31:08,600 --> 00:31:11,240
Speaker 1: is about recognizing that not everybody's gonna go through a

487
00:31:11,240 --> 00:31:14,000
Speaker 1: four year computer science program, nor should they at a

488
00:31:14,080 --> 00:31:16,920
Speaker 1: university in Boulder or four Collins. But what we can

489
00:31:16,920 --> 00:31:19,440
Speaker 1: do is make sure that the workforce needs are met

490
00:31:20,000 --> 00:31:22,880
Speaker 1: through apprenticeships, making sure that they're available to high schoolers,

491
00:31:22,880 --> 00:31:25,480
Speaker 1: making they're sure they're available to community colleges, making sure

492
00:31:25,480 --> 00:31:27,880
Speaker 1: they're available to people while they're going through a four

493
00:31:27,960 --> 00:31:30,880
Speaker 1: year degree program. So this would match up public part

494
00:31:31,240 --> 00:31:36,160
Speaker 1: public private partnerships with businesses who need that apprentice, that

495
00:31:36,520 --> 00:31:39,120
Speaker 1: skill address to make sure that we have that pipeline

496
00:31:39,120 --> 00:31:41,480
Speaker 1: in existence so that we can continue to see business growth.

497
00:31:41,520 --> 00:31:43,560
Speaker 1: How acute problem is this in Colorado? If I wander

498
00:31:43,600 --> 00:31:45,760
Speaker 1: around Rhino today, or I make that drive from Denver

499
00:31:45,800 --> 00:31:47,840
Speaker 1: to Boulder, uh, and just look at all of the

500
00:31:47,880 --> 00:31:50,480
Speaker 1: development on that ground out it is incredible and you

501
00:31:50,520 --> 00:31:54,160
Speaker 1: see so many tech companies there. Uh is it a problem? Colard?

502
00:31:54,200 --> 00:31:56,960
Speaker 1: Do you foresee it being a problem. How much opportunity

503
00:31:57,000 --> 00:31:58,480
Speaker 1: is there right now in the tech sector vers how

504
00:31:58,480 --> 00:32:00,240
Speaker 1: many unfield jobs are You know, It's a great thing

505
00:32:00,280 --> 00:32:02,360
Speaker 1: about Colorado is everybody wants to be in Colorado. A

506
00:32:02,440 --> 00:32:05,160
Speaker 1: hundreds some thousand people are moving there every year. But

507
00:32:05,360 --> 00:32:08,320
Speaker 1: and so we're able to meet these demands. But it's tough,

508
00:32:08,400 --> 00:32:11,200
Speaker 1: right because you've got to have competitive benefit packages wages

509
00:32:11,240 --> 00:32:13,800
Speaker 1: to make sure that they're they're they're able to compete

510
00:32:13,800 --> 00:32:15,680
Speaker 1: with the next door neighbor who's doing the same thing.

511
00:32:15,920 --> 00:32:18,479
Speaker 1: But just look at cyber alone. There are over twelve

512
00:32:18,480 --> 00:32:22,600
Speaker 1: thousand cyber openings in Colorado cybersecurity openings for businesses in

513
00:32:22,640 --> 00:32:24,320
Speaker 1: Colorado a loan. It's even not higher if you go

514
00:32:24,320 --> 00:32:26,400
Speaker 1: into other states like Virginia, where there's like eighteen or

515
00:32:26,440 --> 00:32:28,920
Speaker 1: twenty thousand. So we've got them. If we're going to

516
00:32:28,960 --> 00:32:31,640
Speaker 1: continue to attract the kind of quality companies that we are,

517
00:32:31,960 --> 00:32:33,920
Speaker 1: we have to make sure that pipeline exists. Right now,

518
00:32:33,960 --> 00:32:36,080
Speaker 1: we're doing a good job or meeting that need, but

519
00:32:36,240 --> 00:32:38,360
Speaker 1: we're gonna have to make sure we continue that pipeline.

520
00:32:38,480 --> 00:32:40,400
Speaker 1: Let's talk about the Amazon effect in all of this.

521
00:32:40,480 --> 00:32:42,200
Speaker 1: You can't talk about tech without talking about the role

522
00:32:42,240 --> 00:32:44,520
Speaker 1: that Amazon place. And we saw such enthusiasm for this

523
00:32:44,520 --> 00:32:48,360
Speaker 1: bidding process to become the side of the next Amazon headquarters.

524
00:32:48,440 --> 00:32:50,479
Speaker 1: And maybe Colorado is trying to convince folks that it's

525
00:32:50,480 --> 00:32:52,520
Speaker 1: on the East coast though though it is not. What

526
00:32:52,800 --> 00:32:56,440
Speaker 1: can we learn from that from from how readily, how eagerly,

527
00:32:57,000 --> 00:32:59,480
Speaker 1: uh cities across the country wanted to get into that competition.

528
00:32:59,840 --> 00:33:01,680
Speaker 1: Amazon said. There are like two d and thirties some

529
00:33:02,080 --> 00:33:05,440
Speaker 1: cities that that said, hey, locate your headquarters here. I

530
00:33:05,760 --> 00:33:08,560
Speaker 1: think it shows that people know these are good paying jobs,

531
00:33:08,560 --> 00:33:10,960
Speaker 1: good benefits, skills jobs, and they kind of want to

532
00:33:11,000 --> 00:33:13,480
Speaker 1: build their cities around the kind of culture that exists

533
00:33:13,480 --> 00:33:16,720
Speaker 1: in these kinds of jobs. And that's people who are savvy, educated,

534
00:33:17,320 --> 00:33:19,880
Speaker 1: skills based that they know is the new you know,

535
00:33:19,920 --> 00:33:21,840
Speaker 1: it's it's pass to state, it's a new economy. But

536
00:33:21,880 --> 00:33:24,240
Speaker 1: I mean this is really the future, uh that that

537
00:33:24,240 --> 00:33:27,120
Speaker 1: that is. You know, we're not going back to some

538
00:33:27,200 --> 00:33:29,040
Speaker 1: of the old style jobs. This is where we're gonna

539
00:33:29,040 --> 00:33:31,080
Speaker 1: move forward to more and more jobs like these are

540
00:33:31,080 --> 00:33:33,080
Speaker 1: going to be there from in Colorado has become a

541
00:33:33,080 --> 00:33:35,600
Speaker 1: great software state, and so a lot of the needs

542
00:33:35,600 --> 00:33:38,080
Speaker 1: that Amazon has are gonna be well at home in

543
00:33:38,120 --> 00:33:39,960
Speaker 1: a state like Colorado. Do you have a hard time

544
00:33:40,040 --> 00:33:42,080
Speaker 1: keeping people in Colorado? You've got folks like a young

545
00:33:42,080 --> 00:33:44,040
Speaker 1: Michael McKee who wandered out of Fort Collins and found

546
00:33:44,040 --> 00:33:45,880
Speaker 1: his way tot d C. And then New York. Is

547
00:33:45,920 --> 00:33:48,640
Speaker 1: it hard to get people to stay in Colorado after

548
00:33:48,680 --> 00:33:50,760
Speaker 1: they go to college at Colorado State. Man, I think

549
00:33:50,800 --> 00:33:53,120
Speaker 1: a lot of people stay in Colorado, and that's reflected

550
00:33:53,120 --> 00:33:55,200
Speaker 1: in those numbers I just mentioned people moving there, and

551
00:33:55,240 --> 00:33:58,120
Speaker 1: it's really on that Front Range corridor from Colorado Springs,

552
00:33:58,120 --> 00:34:01,440
Speaker 1: Colorado to Denver up to Fort Collins and everywhere in between.

553
00:34:02,000 --> 00:34:04,280
Speaker 1: Where where where we haven't struggle within the state though,

554
00:34:04,360 --> 00:34:06,320
Speaker 1: is making sure that our western slope and our Eastern

555
00:34:06,320 --> 00:34:08,640
Speaker 1: Plains see the same kinds of opportunities. So you do

556
00:34:08,719 --> 00:34:11,799
Speaker 1: have a drain, particularly on the Eastern Plains, from these rural,

557
00:34:11,880 --> 00:34:15,440
Speaker 1: agricultural based communities to the more urban corridors on the

558
00:34:15,960 --> 00:34:18,680
Speaker 1: Front Range area, and that's something we have to address.

559
00:34:18,760 --> 00:34:20,440
Speaker 1: When you talk to a C suite executive trying to

560
00:34:20,440 --> 00:34:22,000
Speaker 1: convince him or her to move a company you or

561
00:34:22,040 --> 00:34:23,759
Speaker 1: move some part of the company to Colorado, what's the

562
00:34:23,760 --> 00:34:26,120
Speaker 1: biggest hurdle that you have to overcome. You can talk

563
00:34:26,160 --> 00:34:27,600
Speaker 1: about the skiing, you can talk about all that you're

564
00:34:27,600 --> 00:34:30,160
Speaker 1: able to do in Colorado from quality of life perspective,

565
00:34:30,160 --> 00:34:32,360
Speaker 1: But what's the biggest issue that that you have to

566
00:34:32,360 --> 00:34:34,120
Speaker 1: get them to overcome. You Know, it's so funny because

567
00:34:34,120 --> 00:34:35,919
Speaker 1: if you look at like a company like Level three

568
00:34:35,960 --> 00:34:39,040
Speaker 1: that decided years ago, decades ago, to headquarters itself in Colorado.

569
00:34:39,360 --> 00:34:42,480
Speaker 1: They said, look, we want East coast West coast education draws,

570
00:34:43,040 --> 00:34:45,120
Speaker 1: but we want the lifestyle of Colorado. And we really

571
00:34:45,160 --> 00:34:48,400
Speaker 1: believe that based on the quality of life factor, recreational opportunities,

572
00:34:48,440 --> 00:34:50,400
Speaker 1: all that the mountains have to offer, all that Denver

573
00:34:50,480 --> 00:34:52,719
Speaker 1: has to offer, that the people from the East coast

574
00:34:52,719 --> 00:34:53,880
Speaker 1: and West coast would come to it. And I think

575
00:34:53,880 --> 00:34:56,560
Speaker 1: they proved themselves exactly right. And that's what we see.

576
00:34:56,600 --> 00:34:59,080
Speaker 1: And so you know the hurdles. Maybe somebody says, well, look,

577
00:34:59,080 --> 00:35:01,680
Speaker 1: Atlanta has an airport that has so many better connections

578
00:35:01,680 --> 00:35:04,000
Speaker 1: and Denver. Come on. Denver's got the fifth busiest airport

579
00:35:04,000 --> 00:35:07,600
Speaker 1: in the United States, adding global flights each and every year.

580
00:35:07,640 --> 00:35:11,040
Speaker 1: You can now fly directed into multiple cities. In Germany,

581
00:35:11,040 --> 00:35:13,680
Speaker 1: you've got both airports, and in London now you can

582
00:35:13,719 --> 00:35:15,759
Speaker 1: fly into from Denver direct. You got a direct to

583
00:35:15,840 --> 00:35:18,560
Speaker 1: to Arta and beyond. And so this is something that

584
00:35:18,600 --> 00:35:20,440
Speaker 1: I think we've been able to address. So you now

585
00:35:20,480 --> 00:35:22,080
Speaker 1: got the train from the A train to train to

586
00:35:22,120 --> 00:35:25,280
Speaker 1: the plane from from d I A to downtown thirty

587
00:35:25,280 --> 00:35:27,719
Speaker 1: seven minutes, six stops you can get there. You've got

588
00:35:27,880 --> 00:35:31,399
Speaker 1: world class resorts. It's a great foodie town now. So really,

589
00:35:31,760 --> 00:35:33,560
Speaker 1: I think the things that people may have thought about

590
00:35:33,680 --> 00:35:35,839
Speaker 1: Colorado in the past have been blown away. Now it's

591
00:35:35,880 --> 00:35:37,000
Speaker 1: got a couple of minutes left before I have to

592
00:35:37,040 --> 00:35:38,239
Speaker 1: go touch to you on stage, let me ask you

593
00:35:38,239 --> 00:35:40,080
Speaker 1: just about the general news of the day here looking

594
00:35:40,080 --> 00:35:43,080
Speaker 1: at tax reform still, I imagine you feeled a few

595
00:35:43,160 --> 00:35:45,840
Speaker 1: questions from constituents wondering how and why the process is

596
00:35:45,840 --> 00:35:47,799
Speaker 1: playing out in the way that it is. Uh, there's

597
00:35:47,800 --> 00:35:50,400
Speaker 1: a narrow time frame here. Uh mc mulvany going on

598
00:35:50,440 --> 00:35:52,640
Speaker 1: television on Sunday saying he's optimistically, with ten or twelve

599
00:35:52,680 --> 00:35:54,600
Speaker 1: days of sync schedules between the House and the Senate,

600
00:35:54,600 --> 00:35:56,440
Speaker 1: you can get tax reform done this year. Are you

601
00:35:56,440 --> 00:35:58,520
Speaker 1: of the belief that it will happen that by two

602
00:35:58,560 --> 00:36:00,640
Speaker 1: thousand and eighteen we're gonna see a new piece legislation

603
00:36:00,960 --> 00:36:04,520
Speaker 1: past signed by January first? Absolutely, I'm of the belief

604
00:36:04,520 --> 00:36:05,920
Speaker 1: that we can, and I'd like to see this done

605
00:36:05,920 --> 00:36:08,240
Speaker 1: sooner rather than later. If you go back to President

606
00:36:08,280 --> 00:36:10,480
Speaker 1: Obama's two thousand and eleven State of the Union address,

607
00:36:10,480 --> 00:36:12,680
Speaker 1: he talked about how we have the highest corporate tax

608
00:36:12,760 --> 00:36:15,279
Speaker 1: rate in the world. That needs to change. How if

609
00:36:15,280 --> 00:36:17,320
Speaker 1: you have lawyers and accountants, you can get around a

610
00:36:17,440 --> 00:36:20,520
Speaker 1: very complicated system. But if you're like everybody else, the

611
00:36:20,600 --> 00:36:23,200
Speaker 1: vast majority of American people, you don't have that ability.

612
00:36:23,239 --> 00:36:26,360
Speaker 1: So you're kind of stuck paying a rigged system. And

613
00:36:26,440 --> 00:36:28,520
Speaker 1: so I think that we can get our job done,

614
00:36:28,800 --> 00:36:30,600
Speaker 1: do what the American people sent us here to do,

615
00:36:30,600 --> 00:36:33,520
Speaker 1: do it in a way that has bipartisan support, because

616
00:36:33,560 --> 00:36:37,239
Speaker 1: I do believe this will be bipartisan, and make sure

617
00:36:37,239 --> 00:36:39,360
Speaker 1: that we put more money in the pockets of American

618
00:36:39,400 --> 00:36:42,600
Speaker 1: families and businesses to grow our economy. Not everybody has

619
00:36:42,760 --> 00:36:45,200
Speaker 1: color out for call its Colorado, for instance, one point

620
00:36:45,320 --> 00:36:47,719
Speaker 1: nine percent unemployment. Not every else and not to every

621
00:36:47,719 --> 00:36:50,040
Speaker 1: other place in the country is able to benefit like that.

622
00:36:50,160 --> 00:36:52,080
Speaker 1: We can do better for everyone. Last question here is

623
00:36:52,239 --> 00:36:55,040
Speaker 1: are you are you finding yourself checking Twitter? Where we're

624
00:36:55,040 --> 00:36:57,480
Speaker 1: talking earlier in the show about what the President tweeted

625
00:36:57,520 --> 00:37:00,279
Speaker 1: about changes to pour one K tax policy h and

626
00:37:00,320 --> 00:37:03,040
Speaker 1: that scuttled or changed the conversation on on Capitol Hill.

627
00:37:03,080 --> 00:37:05,200
Speaker 1: How much is what the President says and does or

628
00:37:05,200 --> 00:37:08,160
Speaker 1: tweets affecting your job on on Capitol Hill. Look, I

629
00:37:08,360 --> 00:37:10,120
Speaker 1: view my job as my job in the Senate. I've

630
00:37:10,120 --> 00:37:11,719
Speaker 1: worked for the people of Colorado and that's what I

631
00:37:11,760 --> 00:37:14,000
Speaker 1: focus on. And uh, you know, I'm not gonna be

632
00:37:14,440 --> 00:37:16,560
Speaker 1: glued to Twitter just to find out what somebody else says.

633
00:37:17,040 --> 00:37:18,319
Speaker 1: But what I want to make sure that I'm doing

634
00:37:18,400 --> 00:37:21,000
Speaker 1: is listening to those voices from Colorado that come out us,

635
00:37:21,000 --> 00:37:23,480
Speaker 1: teach and every day and that we can help represent here.

636
00:37:23,560 --> 00:37:26,279
Speaker 1: Let me try that another way. Uh, Who's who's in

637
00:37:26,280 --> 00:37:28,320
Speaker 1: the lead when it comes to tax reform or the budget?

638
00:37:28,560 --> 00:37:30,239
Speaker 1: What role should the White House be playing? What role

639
00:37:30,239 --> 00:37:31,800
Speaker 1: would you like to see the President playing? You know,

640
00:37:31,840 --> 00:37:33,759
Speaker 1: I think that cheerly said, Yeah, I see what you mean.

641
00:37:33,760 --> 00:37:35,719
Speaker 1: I'm sorry about that. Yeah, I think what what what

642
00:37:35,760 --> 00:37:37,520
Speaker 1: the White House can play. What I think any White

643
00:37:37,560 --> 00:37:41,080
Speaker 1: House should play is a role of sort of um convener,

644
00:37:41,360 --> 00:37:43,920
Speaker 1: so to speak, that role of Hey, we've got disparate

645
00:37:43,920 --> 00:37:46,880
Speaker 1: elements within the Republican Party, You've got disparate ideas between

646
00:37:46,920 --> 00:37:49,480
Speaker 1: the Democrats and the Republicans. Let's come together find a

647
00:37:49,520 --> 00:37:52,960
Speaker 1: package that represents the best of everybody. Because, like I said,

648
00:37:53,000 --> 00:37:55,520
Speaker 1: President Obama talked about this. Chuck Schumer has talked about this.

649
00:37:55,840 --> 00:37:57,279
Speaker 1: All right, let's do this. Let's do it in a

650
00:37:57,280 --> 00:37:59,480
Speaker 1: way they can gain that broad bipartisan support. So I

651
00:37:59,640 --> 00:38:01,520
Speaker 1: think that's the real role that a White House can play.

652
00:38:01,960 --> 00:38:05,560
Speaker 1: Um and I think you've seen successes from this White

653
00:38:05,560 --> 00:38:07,680
Speaker 1: House in that front. You've seen failures from this White

654
00:38:07,719 --> 00:38:09,239
Speaker 1: House on that front, just like you have with any

655
00:38:09,239 --> 00:38:11,960
Speaker 1: other administration. All right, House, back to our conveners in

656
00:38:12,000 --> 00:38:14,160
Speaker 1: New York, Tom Keen, Michael McKee, Senator of Garden, thank

657
00:38:14,160 --> 00:38:16,160
Speaker 1: you very much for the time. They appreciate it. Go

658
00:38:16,160 --> 00:38:20,480
Speaker 1: go Rams, go Rams. Thank you ms fantastic for then

659
00:38:20,719 --> 00:38:24,600
Speaker 1: together and talk about the things we are misdeeds for college.

660
00:38:25,000 --> 00:38:28,520
Speaker 1: That would be true for the Senator and for Michael McKee.

661
00:38:28,560 --> 00:38:30,840
Speaker 1: You can't do better than the dan Offs, Will Danof

662
00:38:30,840 --> 00:38:54,520
Speaker 1: and Taffy danofs wonderful son John Denver made. We are

663
00:38:54,640 --> 00:38:58,000
Speaker 1: thrilled to bring you the man that I hate the most.

664
00:38:58,920 --> 00:39:01,840
Speaker 1: It is just un real. And the Keen household the

665
00:39:01,880 --> 00:39:07,080
Speaker 1: importance of Stephen Schwartz of Hearst because it comes in

666
00:39:08,080 --> 00:39:12,480
Speaker 1: and it it destroys the budget. It's known as Harper's Bazaar,

667
00:39:12,920 --> 00:39:15,600
Speaker 1: which is one part of the Swartz Empire as well.

668
00:39:15,680 --> 00:39:17,800
Speaker 1: You started at page one at the Wall Street Journal

669
00:39:19,560 --> 00:39:23,680
Speaker 1: like a real journalist, a real journalist dealing with the

670
00:39:23,719 --> 00:39:27,680
Speaker 1: modern age of journalism and all of the Hearst heritage

671
00:39:27,880 --> 00:39:31,040
Speaker 1: and that. Do you dive into Harper's Bazaar every month?

672
00:39:31,440 --> 00:39:36,320
Speaker 1: I I I love Harper's Bizarre. It's one of roughly

673
00:39:36,400 --> 00:39:40,440
Speaker 1: three hundred magazines that we have. And look, magazines have

674
00:39:40,520 --> 00:39:42,080
Speaker 1: been around a long time and they're going to be

675
00:39:42,120 --> 00:39:45,560
Speaker 1: around a lot longer. Is luxury gonna stay with print?

676
00:39:45,640 --> 00:39:47,840
Speaker 1: I mean that's a major debate. Everybody else sex that,

677
00:39:47,960 --> 00:39:50,480
Speaker 1: you know, the turmoil and Time Magazine and all that,

678
00:39:50,719 --> 00:39:53,160
Speaker 1: and yet Harper seems to boom along with the other

679
00:39:53,560 --> 00:39:57,080
Speaker 1: luxury magazines. You know, I think luxury is is a

680
00:39:57,120 --> 00:39:59,560
Speaker 1: good place to be. It's been a little soft over

681
00:39:59,680 --> 00:40:03,720
Speaker 1: the last but yes, over the long haul, we feel

682
00:40:03,840 --> 00:40:06,400
Speaker 1: very good about our position in fashion, in the luxury

683
00:40:06,440 --> 00:40:08,480
Speaker 1: sector in general. Mike, what you can do there is

684
00:40:08,480 --> 00:40:11,400
Speaker 1: you get a whole page of things in blue or

685
00:40:11,440 --> 00:40:15,960
Speaker 1: a whole page of things in red, and Thomas tears

686
00:40:16,000 --> 00:40:18,959
Speaker 1: the pages out to know what yes to buy? Uh,

687
00:40:19,120 --> 00:40:23,320
Speaker 1: here's my question. And you own a bazillion different media businesses,

688
00:40:23,920 --> 00:40:25,360
Speaker 1: but they all come down to one thing. Is you

689
00:40:25,440 --> 00:40:27,400
Speaker 1: gotta have eyeballs on them. They've gotta read the magazines

690
00:40:27,480 --> 00:40:30,400
Speaker 1: or watch the TV networks or listen to the radio programs.

691
00:40:30,600 --> 00:40:37,080
Speaker 1: What everything you produce? How do you sell and realize

692
00:40:37,120 --> 00:40:39,600
Speaker 1: how you're doing these days in a world where and

693
00:40:39,640 --> 00:40:41,640
Speaker 1: I'm not a millennial, but I find myself doing this.

694
00:40:42,719 --> 00:40:46,479
Speaker 1: I read magazines, I watched TV programs, but I don't

695
00:40:46,960 --> 00:40:49,680
Speaker 1: buy the magazine or turn on the TV. You know,

696
00:40:49,719 --> 00:40:52,120
Speaker 1: everything is driven by social media. Now you see an

697
00:40:52,200 --> 00:40:55,560
Speaker 1: article that is linked to something you know it used

698
00:40:55,600 --> 00:40:57,360
Speaker 1: to be. You can say I'm doing great because I

699
00:40:57,400 --> 00:40:59,759
Speaker 1: sold this many magazines or this many eyeballs were on

700
00:40:59,840 --> 00:41:02,719
Speaker 1: the TV program at eight thirty? How do you do

701
00:41:02,760 --> 00:41:05,400
Speaker 1: that these days and know that you're going to be successful.

702
00:41:06,160 --> 00:41:09,719
Speaker 1: I think you're right that it's a more competitive environment

703
00:41:09,760 --> 00:41:13,160
Speaker 1: out there in consumer media. There's there's far more quality

704
00:41:13,200 --> 00:41:15,359
Speaker 1: media than people have time to watch. There are far

705
00:41:15,440 --> 00:41:20,600
Speaker 1: more places to put advertising uh than there is advertising. Uh.

706
00:41:20,640 --> 00:41:23,000
Speaker 1: So I think what you have to do, uh, if

707
00:41:23,040 --> 00:41:26,040
Speaker 1: you're if your brand, like a magazine brand is you've

708
00:41:26,080 --> 00:41:28,880
Speaker 1: got to You've got to go everywhere that the consumer is.

709
00:41:28,960 --> 00:41:32,239
Speaker 1: So take our brand, Cosmopolitan, fabulous magazine brand, but it

710
00:41:32,360 --> 00:41:36,719
Speaker 1: is a huge hit on Snapchat, huge hit on on Facebook,

711
00:41:36,840 --> 00:41:39,560
Speaker 1: and uh, you know that's the kind of thing that

712
00:41:39,680 --> 00:41:42,040
Speaker 1: you've got to do going forward. You've got to find

713
00:41:42,080 --> 00:41:45,879
Speaker 1: the audiences and you've got to find new pockets of growth. Now,

714
00:41:45,920 --> 00:41:48,720
Speaker 1: another thing that we've done at first over the years

715
00:41:48,880 --> 00:41:51,680
Speaker 1: is build up a whole other line of business, which

716
00:41:51,719 --> 00:41:56,400
Speaker 1: is our business data operations and our business software operations.

717
00:41:56,680 --> 00:41:59,560
Speaker 1: Largest business in that area is our Fitch Group, the

718
00:41:59,600 --> 00:42:03,200
Speaker 1: Fitch on rating business and other Fitch data businesses. So

719
00:42:03,239 --> 00:42:07,120
Speaker 1: we have healthcare data businesses, healthcare software business as, a

720
00:42:07,160 --> 00:42:11,120
Speaker 1: fabulous aviation software business called Camp. And so these business

721
00:42:11,200 --> 00:42:14,160
Speaker 1: data and software businesses that have been in our portfolio

722
00:42:14,200 --> 00:42:17,160
Speaker 1: at least to some degree for many years are now

723
00:42:17,200 --> 00:42:21,040
Speaker 1: approaching a third of our profits and growing much faster

724
00:42:21,120 --> 00:42:24,080
Speaker 1: than the consumer media stuff, which gives us time to

725
00:42:24,120 --> 00:42:26,959
Speaker 1: reposition some of these consumer media brands. To be clear

726
00:42:27,000 --> 00:42:29,080
Speaker 1: for our listeners, we hope you can stay with another

727
00:42:29,120 --> 00:42:32,200
Speaker 1: block given your schedule. But to be clear here, you're

728
00:42:32,239 --> 00:42:36,399
Speaker 1: a private company, right, yes? Are you advantage by being

729
00:42:36,520 --> 00:42:39,960
Speaker 1: private and not being in the quarter to quarter crucible

730
00:42:40,080 --> 00:42:42,359
Speaker 1: of your good competitors? I think we're very advantage by

731
00:42:42,360 --> 00:42:44,960
Speaker 1: being profit take for example, our newspaper group, it was

732
00:42:45,000 --> 00:42:48,840
Speaker 1: getting hit harder as hard as as as other newspaper groups.

733
00:42:48,880 --> 00:42:52,080
Speaker 1: You go back to two thousand, seven, eight and nine. Uh,

734
00:42:52,120 --> 00:42:53,719
Speaker 1: there would be a lot of pressure if we were

735
00:42:53,760 --> 00:42:56,840
Speaker 1: public to to spin off or sell the newspaper group.

736
00:42:57,120 --> 00:42:59,560
Speaker 1: But we turned that group around and this will be

737
00:42:59,600 --> 00:43:03,279
Speaker 1: the sick straight year of profit growth and her newspapers.

738
00:43:03,320 --> 00:43:05,879
Speaker 1: We have no debt against her newspapers, so they are

739
00:43:05,880 --> 00:43:10,680
Speaker 1: a great contribution to cash. But but outside investors would

740
00:43:10,680 --> 00:43:12,840
Speaker 1: have tried to pressure us to sell that group. You

741
00:43:12,960 --> 00:43:15,880
Speaker 1: work for like some would say a real journalist. William

742
00:43:15,960 --> 00:43:18,719
Speaker 1: Randolph Hurst the Third was at the San Francisco Examiner

743
00:43:18,760 --> 00:43:23,200
Speaker 1: a million years ago. I mean that name is iconic

744
00:43:23,320 --> 00:43:26,560
Speaker 1: to so many of our listeners. How active is uh

745
00:43:26,640 --> 00:43:30,080
Speaker 1: William Randolph Hers the Third in your day to day operations? Well?

746
00:43:30,360 --> 00:43:33,320
Speaker 1: Well will he will will is our chairman. He is

747
00:43:33,360 --> 00:43:36,120
Speaker 1: an incredibly smart man. He was a partner at Kleiner

748
00:43:36,400 --> 00:43:41,080
Speaker 1: Perkins stuff. Uh, he was our publisher at the San

749
00:43:41,160 --> 00:43:45,040
Speaker 1: Francisco Examiner. And uh and and and of course you

750
00:43:45,080 --> 00:43:49,319
Speaker 1: know the company is still I think runs on the

751
00:43:49,520 --> 00:43:52,319
Speaker 1: on the the ethos of of of William Randolph Hurst.

752
00:43:52,360 --> 00:43:55,040
Speaker 1: I mean he He was always pushing for new things,

753
00:43:55,080 --> 00:43:58,839
Speaker 1: always innovating, and and uh. And then my my predecessor,

754
00:43:58,880 --> 00:44:01,080
Speaker 1: Frank Bennett, who ran the comp for twenty eight years,

755
00:44:01,320 --> 00:44:04,200
Speaker 1: picked up the man mantel of William Randolf. Hearst pushed

756
00:44:04,280 --> 00:44:06,960
Speaker 1: us into cable, pushed us into business data. So the

757
00:44:07,239 --> 00:44:10,440
Speaker 1: philosophy of our company is you gotta keep moving. Well, well,

758
00:44:10,480 --> 00:44:12,080
Speaker 1: that's right where I want to go. You could stay

759
00:44:12,120 --> 00:44:13,719
Speaker 1: with us right now. You don't have to go off,

760
00:44:13,760 --> 00:44:17,760
Speaker 1: and you know, solve hersty getting problems there. It's diverse.

761
00:44:20,600 --> 00:44:23,640
Speaker 1: You don't do a hockey illustrated dude. I mean, can

762
00:44:23,640 --> 00:44:26,080
Speaker 1: you imagine doctor's offices with a bunch of iPhones sitting

763
00:44:26,120 --> 00:44:28,920
Speaker 1: around you? No? I can't. Well, no, we can come

764
00:44:28,960 --> 00:44:31,240
Speaker 1: back and talk about that. The resurrection of print books.

765
00:44:31,280 --> 00:44:33,800
Speaker 1: We've been seeing that as a theme this year. Stephen

766
00:44:33,840 --> 00:44:36,800
Speaker 1: Sworts with us, of course with Hearst. We were talking

767
00:44:36,800 --> 00:44:40,239
Speaker 1: earlier about the chairman William Randolph first the third. I

768
00:44:40,239 --> 00:44:44,280
Speaker 1: want to go back to where hers bought the Albany

769
00:44:44,400 --> 00:44:47,239
Speaker 1: Times Union. I was a paper boy for the Rochester

770
00:44:47,840 --> 00:44:51,000
Speaker 1: Times Union. To give you an idea, Congresswoman Louise Slaughter

771
00:44:51,360 --> 00:44:54,560
Speaker 1: still owes me four dollars twenty three cents on our

772
00:44:54,800 --> 00:44:57,560
Speaker 1: Times Union subscription. You know we still own the many

773
00:44:57,600 --> 00:45:00,040
Speaker 1: Times Union. It's a great paper at George Hurst the

774
00:45:00,120 --> 00:45:03,240
Speaker 1: third is our publisher there and he does a fabulous job, wonderful, wonderful.

775
00:45:03,320 --> 00:45:06,280
Speaker 1: And and then the idea in Boston Good Morning Boston

776
00:45:06,280 --> 00:45:09,560
Speaker 1: one or six one FM is a juggernaut in true

777
00:45:09,680 --> 00:45:16,000
Speaker 1: innovator w CVB channel. Can locals survive? And local TV

778
00:45:16,440 --> 00:45:20,240
Speaker 1: and can local Times Union kind of papers? Can they survive?

779
00:45:20,560 --> 00:45:23,440
Speaker 1: And can you make money? This is an important social

780
00:45:23,520 --> 00:45:26,440
Speaker 1: question for the nation. Absolutely. I would argue that local

781
00:45:26,600 --> 00:45:29,920
Speaker 1: right now has certain advantages over national When you have

782
00:45:29,960 --> 00:45:34,759
Speaker 1: a national publication or national show TV show, you're you're

783
00:45:34,840 --> 00:45:38,560
Speaker 1: competing head to head with Google and Facebook, and they

784
00:45:38,560 --> 00:45:41,000
Speaker 1: are doing a fabulous job of taking a lot of

785
00:45:41,080 --> 00:45:44,160
Speaker 1: money out of the market that might be available for

786
00:45:44,239 --> 00:45:48,200
Speaker 1: other for other media. Locally, if you're the best, and

787
00:45:48,400 --> 00:45:50,560
Speaker 1: we're the best in Albany with the Times Union, we're

788
00:45:50,560 --> 00:45:53,799
Speaker 1: the best in Boston with channel five, Uh, you can

789
00:45:54,200 --> 00:45:56,360
Speaker 1: you can take your fair share of the local market

790
00:45:56,440 --> 00:45:59,919
Speaker 1: and our local businesses are thriving. What's your what's your metro?

791
00:46:00,040 --> 00:46:02,759
Speaker 1: How do you decide when you say if you're the

792
00:46:02,760 --> 00:46:05,200
Speaker 1: best in the local park. How do you decide what

793
00:46:05,360 --> 00:46:09,040
Speaker 1: business is worth being in these days? Which property is

794
00:46:09,160 --> 00:46:12,160
Speaker 1: worth owning? Well, we we don't have a history of

795
00:46:12,200 --> 00:46:14,400
Speaker 1: getting out of things. I mean we've we've been in

796
00:46:14,440 --> 00:46:18,120
Speaker 1: the newspaper business forever, the magazine business almost forever, and uh,

797
00:46:18,400 --> 00:46:21,359
Speaker 1: a local television you know William Randolph first himself bought

798
00:46:21,360 --> 00:46:24,440
Speaker 1: our first television station in Baltimore before he died in

799
00:46:24,520 --> 00:46:27,799
Speaker 1: ninety one. You know, we don't we don't get out

800
00:46:27,800 --> 00:46:30,880
Speaker 1: of these businesses. We think we we run our business

801
00:46:30,920 --> 00:46:33,360
Speaker 1: as well. We have no debt against them, and uh,

802
00:46:33,400 --> 00:46:35,399
Speaker 1: you know we're we're having a we're having a fine

803
00:46:35,480 --> 00:46:38,320
Speaker 1: year in in all all of the traditional media businesses.

804
00:46:38,400 --> 00:46:41,839
Speaker 1: Our colleague David Gura is not here, and he has

805
00:46:42,239 --> 00:46:45,560
Speaker 1: I think a lifetime subscription to road Dale's Organic Life

806
00:46:45,960 --> 00:46:49,560
Speaker 1: where he cooks kill. He has Kelly like in every

807
00:46:49,600 --> 00:46:52,200
Speaker 1: manner that he can. And is it right that you

808
00:46:52,239 --> 00:46:56,440
Speaker 1: have the magas? I don't get Men's Health got that right? Prevention?

809
00:46:56,560 --> 00:47:00,640
Speaker 1: I don't get that. I certainly don't get road Dale Organic.

810
00:47:00,719 --> 00:47:02,759
Speaker 1: Like do you just Cigar World by any chance? We

811
00:47:02,840 --> 00:47:06,120
Speaker 1: did not? Damn? Okay, but you're going into organic and

812
00:47:06,239 --> 00:47:09,799
Speaker 1: killing all that week. We even read to uh to

813
00:47:09,920 --> 00:47:14,360
Speaker 1: acquire the fabulous assets of the Rodale family had it

814
00:47:14,400 --> 00:47:19,080
Speaker 1: had did a fabulous job creating a unique voice uh

815
00:47:19,120 --> 00:47:21,960
Speaker 1: in health and wellness, and uh we think it's a

816
00:47:22,000 --> 00:47:26,080
Speaker 1: great category. It will strengthen our already strong magazine division.

817
00:47:26,080 --> 00:47:29,560
Speaker 1: And look, the magazine business is a much tougher business today,

818
00:47:29,840 --> 00:47:33,080
Speaker 1: uh than it was ten years or so ago. Uh,

819
00:47:33,120 --> 00:47:36,440
Speaker 1: But we're the leader there and we think this combination

820
00:47:36,480 --> 00:47:39,160
Speaker 1: of Hurst and Rodale makes us even strong. Here's the

821
00:47:39,280 --> 00:47:42,560
Speaker 1: article from Men's Health. Michael mckeel loved this how this

822
00:47:42,600 --> 00:47:45,680
Speaker 1: guy lost a hundred and twenty two pounds without ever

823
00:47:45,920 --> 00:47:50,000
Speaker 1: hitting the gym. Steve Schwartz ordered that article to be done.

824
00:47:50,560 --> 00:47:54,920
Speaker 1: Tom just the Martini's gotta go. You could do the

825
00:47:55,040 --> 00:47:57,919
Speaker 1: same thing. Uh. Here's the question. I have the sort

826
00:47:57,960 --> 00:48:00,359
Speaker 1: of flows out of all this. When you end your

827
00:48:00,400 --> 00:48:04,239
Speaker 1: sales guys out, are you uh telling them you know what?

828
00:48:04,560 --> 00:48:06,960
Speaker 1: What do they tell the clients? If you look across

829
00:48:07,000 --> 00:48:10,000
Speaker 1: our platforms, we have all these eyeballs. Can you sell

830
00:48:10,040 --> 00:48:15,319
Speaker 1: an individual property anymore? Or given the mix of the

831
00:48:15,360 --> 00:48:20,080
Speaker 1: way people watch and see things, Um, obviously the Times

832
00:48:20,200 --> 00:48:22,839
Speaker 1: Union is going to get the local Albany department store.

833
00:48:22,840 --> 00:48:25,600
Speaker 1: But other than that, UM, what what how do you

834
00:48:25,640 --> 00:48:28,960
Speaker 1: sell these days? You know, certain advertisers just want a

835
00:48:29,040 --> 00:48:33,919
Speaker 1: particular property, But in general, consumer franchises like ours are

836
00:48:34,000 --> 00:48:38,880
Speaker 1: selling a mix of services, our own web and mobile sides,

837
00:48:39,239 --> 00:48:44,880
Speaker 1: our presence on platforms like Facebook and UH and Snapchat. UH.

838
00:48:45,120 --> 00:48:51,919
Speaker 1: We will uh create advertising for content for advertisers, say

839
00:48:51,920 --> 00:48:54,560
Speaker 1: it our magazine division based on our knowledge of fashion

840
00:48:54,600 --> 00:48:58,560
Speaker 1: and beauty. You're you're delivering today to the advertiser a

841
00:48:58,640 --> 00:49:02,640
Speaker 1: mix of services. Jeff Bezos, friend or enemy, what he's

842
00:49:02,640 --> 00:49:05,760
Speaker 1: done at the Post is extraordinary. How do you handle

843
00:49:05,760 --> 00:49:08,120
Speaker 1: a guy like Jeff Bez? I think Jeff Bezos is

844
00:49:08,400 --> 00:49:11,800
Speaker 1: probably the best chief executive in the in the country,

845
00:49:11,840 --> 00:49:15,160
Speaker 1: and uh he has He's made all of our lives

846
00:49:16,600 --> 00:49:19,960
Speaker 1: better with his innovations. I think the Washington Post is

847
00:49:20,000 --> 00:49:23,080
Speaker 1: doing a great job today, and that's to their credit

848
00:49:23,160 --> 00:49:26,279
Speaker 1: and to his credit. But look any any business, and

849
00:49:26,360 --> 00:49:29,120
Speaker 1: we have a number of phenomenal businesses in this country

850
00:49:29,520 --> 00:49:32,840
Speaker 1: that get quite powerful, quite dominant, and it is a

851
00:49:33,000 --> 00:49:35,719
Speaker 1: it is a question for policymakers to always look at

852
00:49:35,800 --> 00:49:42,480
Speaker 1: just to make sure after some absolutely absolutely not. I

853
00:49:42,480 --> 00:49:45,239
Speaker 1: I think they're they're excellent partners of ours. But I'm

854
00:49:45,280 --> 00:49:47,960
Speaker 1: just saying in our economy, we always have to watch

855
00:49:48,040 --> 00:49:51,759
Speaker 1: that businesses don't become too big and powerful and and

856
00:49:51,840 --> 00:49:55,279
Speaker 1: squeeze out innovation and entrepreneurship. So it's just something to

857
00:49:55,320 --> 00:49:58,880
Speaker 1: be watched and occasionally a corrective measure has to be done.

858
00:49:58,920 --> 00:50:01,680
Speaker 1: But these are all great businesses and I I'm not

859
00:50:01,760 --> 00:50:04,880
Speaker 1: proposing anything very very quick question here. Bloomberg TV is

860
00:50:04,880 --> 00:50:07,760
Speaker 1: obviously the best network out there, but um, the second

861
00:50:07,800 --> 00:50:10,600
Speaker 1: best has gotta be Awesomeness TV. You have awesome What

862
00:50:10,719 --> 00:50:14,200
Speaker 1: is Awesomeeness TV. Awesomeness TV is a is a great

863
00:50:14,280 --> 00:50:17,880
Speaker 1: young business that that that focuses mainly on the the

864
00:50:17,960 --> 00:50:22,399
Speaker 1: young teenage girl market. It it does movies, it does

865
00:50:22,600 --> 00:50:26,040
Speaker 1: it does television, it does streaming videos, it does YouTube

866
00:50:26,120 --> 00:50:29,480
Speaker 1: and uh, it's one of a number of bets that

867
00:50:29,520 --> 00:50:31,960
Speaker 1: we've made on the future of streaming video. That is

868
00:50:32,040 --> 00:50:34,280
Speaker 1: your future. It is. Yeah, I'll give you my future.

869
00:50:34,600 --> 00:50:37,520
Speaker 1: I'm begging you know, Gucci in the next Harper's Bizarre

870
00:50:37,560 --> 00:50:40,400
Speaker 1: st swarts. Thank you so much with Hurst, wonderful to

871
00:50:40,480 --> 00:50:56,560
Speaker 1: having mere on the future of media. David Guru. Governor

872
00:50:56,600 --> 00:51:00,759
Speaker 1: mccauliff didn't think you would have a weekend like had

873
00:51:01,160 --> 00:51:03,839
Speaker 1: with Charlottesville. It was a number of weeks ago when

874
00:51:03,880 --> 00:51:07,480
Speaker 1: we spoke to him in the heat of uh that tragedy,

875
00:51:07,960 --> 00:51:11,040
Speaker 1: and uh, it is time for a good conversation. Please,

876
00:51:11,080 --> 00:51:13,600
Speaker 1: David grew up, bring us the governor of Virginia. I

877
00:51:13,680 --> 00:51:15,440
Speaker 1: got a term a call of the seventy second governor

878
00:51:15,480 --> 00:51:17,400
Speaker 1: of the Commonwealth of Virginia, former chairman of the Democratic

879
00:51:17,480 --> 00:51:20,080
Speaker 1: National Committee with me here at a Bloomberg government event

880
00:51:20,120 --> 00:51:22,759
Speaker 1: here in Washington, d C. Let's start there. Imagine you've

881
00:51:22,800 --> 00:51:25,759
Speaker 1: been there and back many times, and I wonder, Uh,

882
00:51:25,760 --> 00:51:28,560
Speaker 1: it's it's it's a not full enough to say, how's

883
00:51:28,600 --> 00:51:30,120
Speaker 1: the healing going there? But what have we learned from

884
00:51:30,160 --> 00:51:32,759
Speaker 1: that tragedy? And and and how have you continued to

885
00:51:32,800 --> 00:51:35,600
Speaker 1: pay attention to to what's been going on in Albemarle County. Well,

886
00:51:35,600 --> 00:51:37,719
Speaker 1: it's interesting, as soon as the event was over, most

887
00:51:37,800 --> 00:51:39,799
Speaker 1: of the people left. They were from out of state.

888
00:51:39,840 --> 00:51:41,880
Speaker 1: As I said that day, go home, you're not wanted,

889
00:51:41,920 --> 00:51:44,880
Speaker 1: you're not patriots or a bunch of cowards. And they

890
00:51:44,920 --> 00:51:47,520
Speaker 1: did leave the state and they haven't been back, which

891
00:51:47,600 --> 00:51:50,399
Speaker 1: is good. So you know, Charlottesville has very quickly come

892
00:51:50,400 --> 00:51:53,800
Speaker 1: back together. It's a great resilient community and people realize

893
00:51:53,840 --> 00:51:56,439
Speaker 1: that these folks came in and from out of state

894
00:51:56,800 --> 00:51:59,400
Speaker 1: to cause harm in our beautiful commonwealth. So you know,

895
00:51:59,480 --> 00:52:02,239
Speaker 1: everybody came together very quickly. We've moved on. I've done

896
00:52:02,280 --> 00:52:05,839
Speaker 1: a statewide commission now on diversity. How do we handle

897
00:52:05,880 --> 00:52:08,040
Speaker 1: these issues because you know, these folks left, but you know,

898
00:52:08,040 --> 00:52:10,520
Speaker 1: I'm very clear we still have issues ourselves in Virginia.

899
00:52:10,840 --> 00:52:13,480
Speaker 1: We have had a sordid history ourselves, as you know,

900
00:52:13,560 --> 00:52:16,120
Speaker 1: as it relates to many of these racial issues. UM.

901
00:52:16,160 --> 00:52:18,640
Speaker 1: So I have a you know, commission dealing with that.

902
00:52:18,880 --> 00:52:21,480
Speaker 1: I've also put together a commission, uh to deal with

903
00:52:21,520 --> 00:52:24,880
Speaker 1: the permitting processes. You know, I was very angry. Uh,

904
00:52:24,960 --> 00:52:28,560
Speaker 1: Charlottesville had requested that that we moved from Emancipation parked

905
00:52:28,640 --> 00:52:31,480
Speaker 1: up to McEntyre Park. You know, the key to this, David,

906
00:52:31,560 --> 00:52:33,680
Speaker 1: is to keep the two sides separated. It's the most

907
00:52:33,680 --> 00:52:37,120
Speaker 1: important thing that you can do. So I talked to

908
00:52:37,200 --> 00:52:40,320
Speaker 1: Charlie Baker the next day Sunday. He called me. Governor

909
00:52:40,320 --> 00:52:42,839
Speaker 1: matth usetaid, what what's the best thing advice? I said,

910
00:52:42,840 --> 00:52:45,680
Speaker 1: get a permit, keep them separated. And they were able

911
00:52:45,719 --> 00:52:48,279
Speaker 1: to do that. Unfortunately, you know, the a c l

912
00:52:48,360 --> 00:52:51,840
Speaker 1: U sued Charlottesville and the judge sided with them and

913
00:52:51,840 --> 00:52:54,800
Speaker 1: they kept it. And at this Emancipation Park, which is

914
00:52:54,840 --> 00:52:57,279
Speaker 1: a very small area, and they put thousands of people

915
00:52:57,360 --> 00:53:00,879
Speaker 1: in the same little park which was a boiling point.

916
00:53:00,920 --> 00:53:03,160
Speaker 1: And then when they finally moved him out, you had

917
00:53:03,200 --> 00:53:06,440
Speaker 1: a twenty one year old kid terrorists Mechaniz's car and

918
00:53:06,560 --> 00:53:09,319
Speaker 1: kill you know, Heather Higher. So, you know, I think

919
00:53:09,320 --> 00:53:12,200
Speaker 1: the permitting process, you know, if we can stop this idea,

920
00:53:12,280 --> 00:53:14,759
Speaker 1: and I'm going to come out with some recommendations. The

921
00:53:14,760 --> 00:53:17,239
Speaker 1: commission is gonna report back me next two weeks and uh,

922
00:53:17,480 --> 00:53:19,720
Speaker 1: we'll go for Listen, our job just keep people safe.

923
00:53:19,920 --> 00:53:22,160
Speaker 1: You can come in, David. I may not like what

924
00:53:22,239 --> 00:53:24,279
Speaker 1: you have to say, but you've got every right to

925
00:53:24,280 --> 00:53:26,279
Speaker 1: say it. You do not have a right to come

926
00:53:26,320 --> 00:53:29,560
Speaker 1: in and hurt people or property. You don't. And that's

927
00:53:29,600 --> 00:53:31,920
Speaker 1: my job as governor to make sure that we can

928
00:53:32,000 --> 00:53:34,440
Speaker 1: keep people safe. And we've got to work better with

929
00:53:34,520 --> 00:53:36,879
Speaker 1: the judiciary and others to make sure that when we

930
00:53:36,920 --> 00:53:39,960
Speaker 1: have recommendations that came to me from the FBI and

931
00:53:40,080 --> 00:53:43,279
Speaker 1: DHS that we conveyed to the City of Charlottesville, that

932
00:53:43,320 --> 00:53:45,759
Speaker 1: they actually take those recommendations and they do something with it.

933
00:53:46,040 --> 00:53:48,400
Speaker 1: You're talking awful lot about the New Virginia, and a

934
00:53:48,440 --> 00:53:50,680
Speaker 1: huge component part of that is trade, opening up the

935
00:53:50,719 --> 00:53:53,840
Speaker 1: state to trade, getting more trade going on, getting companies

936
00:53:53,840 --> 00:53:56,239
Speaker 1: from overseas to come here to Virginia. How do you

937
00:53:56,239 --> 00:53:58,080
Speaker 1: go about doing that? What have you learned about what

938
00:53:58,080 --> 00:54:00,200
Speaker 1: what's the most effective way to get companies to come

939
00:54:00,239 --> 00:54:02,480
Speaker 1: to Virginia. Well, I talked about the New Virginia economy

940
00:54:02,520 --> 00:54:04,479
Speaker 1: every day because when I got elected governor, I'm gonna

941
00:54:04,480 --> 00:54:06,879
Speaker 1: focus on one thing's jobs, and might talk about jobs.

942
00:54:06,920 --> 00:54:09,480
Speaker 1: I talked about high quality, high paying jobs and diverse

943
00:54:09,560 --> 00:54:13,600
Speaker 1: fying the economy. Not all tech, not all tech. You no, goodness, gracious, no,

944
00:54:13,800 --> 00:54:17,439
Speaker 1: it's everything. And because we've been hit hard by sequestration,

945
00:54:17,560 --> 00:54:21,239
Speaker 1: Virginia is the number one recipient Department Defense dollars of

946
00:54:21,360 --> 00:54:25,080
Speaker 1: all fifty states. We get the most, fifty five billion dollars.

947
00:54:25,080 --> 00:54:27,759
Speaker 1: But when sequestration, we really got hurt. Before I came

948
00:54:27,760 --> 00:54:29,879
Speaker 1: into office and I was dealing with the remnants of that,

949
00:54:30,080 --> 00:54:32,920
Speaker 1: so I said, we gotta grow. We got diversified. Today

950
00:54:33,040 --> 00:54:35,520
Speaker 1: four years later, David, we are now the number one

951
00:54:35,520 --> 00:54:38,560
Speaker 1: state in America for cyber security companies. You know, over

952
00:54:38,600 --> 00:54:41,719
Speaker 1: six dred and fifty cyber companies. Today, we have more

953
00:54:41,800 --> 00:54:45,200
Speaker 1: data centers. Seventy of the world's Internet traffic now goes

954
00:54:45,239 --> 00:54:49,000
Speaker 1: through Virginia. We are leading on the unmanned aerial systems.

955
00:54:49,040 --> 00:54:52,520
Speaker 1: I just uh did a new unveiled a new runway

956
00:54:52,560 --> 00:54:55,279
Speaker 1: for drones in in Virginia, the first in America. I'm

957
00:54:55,320 --> 00:54:57,200
Speaker 1: the first governor to go up in a drone. I

958
00:54:57,200 --> 00:54:59,719
Speaker 1: went up eight miles over the ocean, me in a

959
00:54:59,840 --> 00:55:02,360
Speaker 1: row about in a little pad and I told to

960
00:55:02,360 --> 00:55:04,640
Speaker 1: take off, and it did and it landed. So but

961
00:55:04,719 --> 00:55:08,040
Speaker 1: you know, so we've got my Now, this is fascinating, David.

962
00:55:08,080 --> 00:55:10,440
Speaker 1: I just announced when I became governor, unemployment was five

963
00:55:10,520 --> 00:55:13,400
Speaker 1: four I just announced the other day three point seven

964
00:55:13,680 --> 00:55:16,680
Speaker 1: were the second lowest of any major state in America.

965
00:55:16,920 --> 00:55:20,319
Speaker 1: Tennessee is one. Virginia is now number two. After what

966
00:55:20,360 --> 00:55:24,120
Speaker 1: we had gone through on sequestration and government shutdowns, for

967
00:55:24,239 --> 00:55:27,040
Speaker 1: Virginia to be back in second place really is extraordinary

968
00:55:27,200 --> 00:55:30,239
Speaker 1: and it's a testament to our educators, to everybody. This

969
00:55:30,280 --> 00:55:33,120
Speaker 1: is a big collective effort. So the state's doing great.

970
00:55:33,239 --> 00:55:37,720
Speaker 1: People are happy. Uh. We've created about two hundred fifteen

971
00:55:37,760 --> 00:55:41,680
Speaker 1: thousand new jobs. I have brought back eighteen points six

972
00:55:41,800 --> 00:55:44,600
Speaker 1: billion of new capital since I've been in office, which

973
00:55:44,600 --> 00:55:47,080
Speaker 1: I should tell you six billion more than governor in

974
00:55:47,080 --> 00:55:49,080
Speaker 1: the history of the common Wealth of Virginia. That is

975
00:55:49,120 --> 00:55:53,359
Speaker 1: the new Virginia economy. Boom moved to Virginia. Three line.

976
00:55:53,400 --> 00:55:55,840
Speaker 1: It all sounds so good. Should we move to Virginia?

977
00:55:57,040 --> 00:56:03,279
Speaker 1: Virginia is for lovers? Why would you anyone, anyone great education, Terry,

978
00:56:03,400 --> 00:56:07,240
Speaker 1: Terry mccauliff with us, with the enthusiasm on his great state.

979
00:56:07,320 --> 00:56:10,440
Speaker 1: Governor mccaulliff, you are more than qualified to answer the question.

980
00:56:10,920 --> 00:56:14,239
Speaker 1: Lilah emails in and says, why can't the Democrats win

981
00:56:14,280 --> 00:56:17,400
Speaker 1: an election? I mean, this is an issue, Terry, and

982
00:56:17,719 --> 00:56:20,160
Speaker 1: and you were in the crosshirs of this with a party.

983
00:56:20,560 --> 00:56:23,160
Speaker 1: Do you do you have to shift from the elite

984
00:56:23,200 --> 00:56:26,759
Speaker 1: progressives up north and on the West coast two real

985
00:56:26,880 --> 00:56:32,279
Speaker 1: Democrats like you and the folks of Wisconsin and Michigan. Yeah,

986
00:56:32,320 --> 00:56:35,120
Speaker 1: it's a good And listen when I say constantly, now,

987
00:56:35,160 --> 00:56:36,880
Speaker 1: there's nothing that I just said. I don't care if

988
00:56:36,880 --> 00:56:39,200
Speaker 1: you're a Democrat or Republican. You're gonna actually argue with

989
00:56:39,640 --> 00:56:41,839
Speaker 1: the guy's creating a lot of high paying jobs. You know,

990
00:56:42,280 --> 00:56:45,000
Speaker 1: we've got a balanced budget. I just had a surplus.

991
00:56:45,040 --> 00:56:48,400
Speaker 1: We've built a new economy. I don't care what political partiment,

992
00:56:48,560 --> 00:56:51,040
Speaker 1: and I think the Democrats have got to lean in

993
00:56:51,960 --> 00:56:55,040
Speaker 1: on the economic issues. I I am. So many people

994
00:56:55,120 --> 00:56:56,799
Speaker 1: run from me when they see me coming down the street.

995
00:56:56,880 --> 00:57:00,000
Speaker 1: I talked to that. Can they do that now or

996
00:57:00,080 --> 00:57:02,480
Speaker 1: can they do it after the midterm elections? Can they

997
00:57:02,520 --> 00:57:06,520
Speaker 1: wait to do it? Every day? What? What? Do? What

998
00:57:06,520 --> 00:57:08,879
Speaker 1: do people want from their politicians? They want a high

999
00:57:08,880 --> 00:57:11,200
Speaker 1: paying job for themselves and their children. They want a

1000
00:57:11,239 --> 00:57:14,040
Speaker 1: great education system. They want roads that work so you

1001
00:57:14,080 --> 00:57:16,000
Speaker 1: don't spend two hours going to see your kids play

1002
00:57:16,040 --> 00:57:18,000
Speaker 1: a ball game in the afternoon. And they want to

1003
00:57:18,000 --> 00:57:21,040
Speaker 1: stay healthy. That's it. We need to stay in that

1004
00:57:21,120 --> 00:57:24,160
Speaker 1: square box. And if you deliver, like in Virginia today,

1005
00:57:24,160 --> 00:57:27,480
Speaker 1: I'm popular, Thank goodes everybody, Like even Republicans say, you know,

1006
00:57:27,560 --> 00:57:29,800
Speaker 1: I may not agree always with the guy's social agenda,

1007
00:57:30,560 --> 00:57:33,400
Speaker 1: but he creates jobs, and that's what they want from us.

1008
00:57:33,400 --> 00:57:36,240
Speaker 1: But I also make the point on the progressive I'm

1009
00:57:36,480 --> 00:57:39,800
Speaker 1: most pro business, but I'm also the most progressive in

1010
00:57:39,840 --> 00:57:42,680
Speaker 1: the sense that you can't bring these jobs in unless

1011
00:57:42,680 --> 00:57:45,000
Speaker 1: you treat people with dignity and respect. I have vetoed

1012
00:57:45,000 --> 00:57:47,240
Speaker 1: a hundred and twenty bills more than any government Virginia

1013
00:57:47,320 --> 00:57:50,880
Speaker 1: history discriminate against women, LGBT or hurt the environment. I'm

1014
00:57:50,880 --> 00:57:53,760
Speaker 1: gonna veto it and did. We are open and welcoming

1015
00:57:53,800 --> 00:57:57,400
Speaker 1: to everyone. Say goodbye to the governor. We have to end.

1016
00:57:59,160 --> 00:58:01,720
Speaker 1: Just get warmed up. I hadn't got my energy going

1017
00:58:01,720 --> 00:58:03,560
Speaker 1: to terrivit call off. Thank you very much for taking

1018
00:58:03,560 --> 00:58:04,800
Speaker 1: the time again. I talking to him here at the

1019
00:58:04,800 --> 00:58:08,720
Speaker 1: Bloomberg Government here watching a DC Tom fired up, fired up,

1020
00:58:08,920 --> 00:58:11,960
Speaker 1: fired up, Let's go get it moved to Virginia, Virginius.

1021
00:58:11,960 --> 00:58:24,200
Speaker 1: For lovers, thanks for listening to the Bloomberg Surveillas podcast.

1022
00:58:24,640 --> 00:58:29,880
Speaker 1: Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or

1023
00:58:29,960 --> 00:58:34,280
Speaker 1: whichever podcast platform you prefer. I'm on Twitter at Tom Keene,

1024
00:58:34,360 --> 00:58:38,720
Speaker 1: David Gura. Is that David Gura? Before the podcast? You

1025
00:58:38,760 --> 00:58:42,040
Speaker 1: can always catch us worldwide. I'm Bloomberg Radio