1 00:00:09,720 --> 00:00:12,880 Speaker 1: Welcome to the Bloomberg Surveillance Podcast. I'm Tom Keene with 2 00:00:13,600 --> 00:00:16,520 Speaker 1: David Gura. Daily we bring you insight from the best 3 00:00:16,560 --> 00:00:22,239 Speaker 1: of economics, finance, investment, and international relations. Find Bloomberg Surveillance 4 00:00:22,320 --> 00:00:27,000 Speaker 1: on Apple Podcasts, SoundCloud, Bloomberg dot Com, and of course 5 00:00:27,320 --> 00:00:35,120 Speaker 1: on the Bloomberg Lots to talk about, and of course 6 00:00:35,159 --> 00:00:40,360 Speaker 1: it is so much about Washington as well. Joining us 7 00:00:40,760 --> 00:00:45,040 Speaker 1: from Maryland and the Senator from Maryland, Ben Cardon. Senator, 8 00:00:45,080 --> 00:00:47,760 Speaker 1: good morning, it's good to be with you. Thank you. 9 00:00:48,000 --> 00:00:54,400 Speaker 1: It has been an extraordinary week in Washington. It has 10 00:00:54,440 --> 00:00:59,960 Speaker 1: been a week of uh, fractious ideas of racism, big 11 00:01:00,000 --> 00:01:01,840 Speaker 1: a tree. We see more of that in the tweets 12 00:01:01,840 --> 00:01:03,840 Speaker 1: this morning from the President and we'll get to that. 13 00:01:04,360 --> 00:01:07,440 Speaker 1: Please address to me how you are speaking to this 14 00:01:07,520 --> 00:01:12,399 Speaker 1: to your constituents across the state of Maryland. Well, it 15 00:01:12,440 --> 00:01:14,920 Speaker 1: has been a shocking week, I would say in regards 16 00:01:14,920 --> 00:01:18,920 Speaker 1: to the President's response to Charlottesville. Uh, there were not 17 00:01:19,040 --> 00:01:24,120 Speaker 1: two sides to this. Uh the neo Nazis, the white supremacis, um. 18 00:01:24,200 --> 00:01:27,000 Speaker 1: Their message is one that is just so much against 19 00:01:27,000 --> 00:01:31,360 Speaker 1: American values that the President had to have moral clarity, 20 00:01:31,480 --> 00:01:34,479 Speaker 1: and he missed that opportunity, and he did not bring 21 00:01:34,480 --> 00:01:37,880 Speaker 1: our country together, and that was just a tragic moment, 22 00:01:38,280 --> 00:01:40,760 Speaker 1: and we're all trying to figure out how to move forward. 23 00:01:41,360 --> 00:01:44,680 Speaker 1: But we we recognize that what the president did hurt 24 00:01:44,720 --> 00:01:47,360 Speaker 1: our country and does not speak to our values. You 25 00:01:47,440 --> 00:01:50,640 Speaker 1: have an interesting heritage and calculus here, not only of 26 00:01:50,720 --> 00:01:54,320 Speaker 1: Maryland with three hundred years ago sort of the Catholic 27 00:01:54,360 --> 00:01:59,000 Speaker 1: outlier if you would across Protestant colonies, but with your 28 00:01:59,040 --> 00:02:01,720 Speaker 1: father running an brood are your grandfather rather running a 29 00:02:01,720 --> 00:02:05,560 Speaker 1: neighborhood grocery store ages ago, and with your activity within 30 00:02:05,600 --> 00:02:10,200 Speaker 1: the Jewish community. I read carefully yesterday Emma Green's important 31 00:02:10,320 --> 00:02:14,919 Speaker 1: article on anti Semitism in The Atlantic. Tell us about 32 00:02:15,000 --> 00:02:18,840 Speaker 1: this new anti semitism that we have seen on the 33 00:02:18,880 --> 00:02:22,200 Speaker 1: posters in Charlottesville and in too much of the reporting. 34 00:02:22,480 --> 00:02:27,240 Speaker 1: Is it a different character than I knew in my childhood. Yes, 35 00:02:27,320 --> 00:02:31,640 Speaker 1: it's it's not government sponsored any Semitism. But it is 36 00:02:32,760 --> 00:02:39,920 Speaker 1: a movement that has gained momentum with nationalism and national pride. Uh. 37 00:02:40,320 --> 00:02:44,679 Speaker 1: Lack of tolerance for a diversity. Uh. This is we've 38 00:02:44,680 --> 00:02:48,400 Speaker 1: seen grown in Europe now coming to the United States. 39 00:02:48,880 --> 00:02:52,919 Speaker 1: I have been very active in the OSCU, the Parliamentary 40 00:02:52,960 --> 00:02:57,959 Speaker 1: Assembly which involves Europe, Central Asia, in North America. I'm 41 00:02:58,000 --> 00:03:01,760 Speaker 1: a specially I'm the special Representative on any Semitism, racism 42 00:03:01,800 --> 00:03:04,799 Speaker 1: and intolerance, and I've seen in Europe. We sell this 43 00:03:04,960 --> 00:03:07,919 Speaker 1: in France, we saw this in Scandinavian countries. We saw 44 00:03:07,919 --> 00:03:12,639 Speaker 1: it in other countries, a growth of nationalism and any Semitism. 45 00:03:12,680 --> 00:03:14,919 Speaker 1: We see it in Hungary, we see it in Poland, 46 00:03:15,160 --> 00:03:19,720 Speaker 1: other countries have experienced this. With the President Trump's election, 47 00:03:20,120 --> 00:03:25,440 Speaker 1: It's given momentum, unfortunately to these types of of racism 48 00:03:25,520 --> 00:03:28,960 Speaker 1: and any Semitism um and that should have no place 49 00:03:29,000 --> 00:03:31,040 Speaker 1: here in the United States, the place anywhere in the world. 50 00:03:31,400 --> 00:03:33,840 Speaker 1: The Senator is it only the Republican Party that can 51 00:03:33,880 --> 00:03:38,240 Speaker 1: deal with that? And how will they deal with it? Well? 52 00:03:38,280 --> 00:03:40,400 Speaker 1: In America, of course, our strength is with the people. 53 00:03:40,920 --> 00:03:43,120 Speaker 1: Uh So, I think the people are speaking out, and 54 00:03:43,160 --> 00:03:45,960 Speaker 1: I hope that there will be Republican leaders who will 55 00:03:46,440 --> 00:03:50,520 Speaker 1: make it very clear that they will not support President 56 00:03:50,520 --> 00:03:54,600 Speaker 1: Trump's activities here. Uh this should not be a partisan issue. 57 00:03:55,280 --> 00:03:58,520 Speaker 1: Speaking after American values is what I think all of 58 00:03:58,600 --> 00:04:01,840 Speaker 1: us believe is our first possibility. It comes to the 59 00:04:01,880 --> 00:04:04,720 Speaker 1: Four Party, and I would hope that we will see 60 00:04:04,760 --> 00:04:09,120 Speaker 1: more unity in America speaking out against President Trump. Do 61 00:04:09,160 --> 00:04:13,000 Speaker 1: you believe President Trump's credential as a business president are 62 00:04:13,080 --> 00:04:15,480 Speaker 1: tarnished forever because a lot of CEO has walked away 63 00:04:15,480 --> 00:04:20,359 Speaker 1: from him yesterday. I think it's not about being a 64 00:04:20,400 --> 00:04:27,320 Speaker 1: transactional president. His business dealings are somewhat suspect. But having 65 00:04:27,320 --> 00:04:30,120 Speaker 1: said that, we were a person who's going to represent 66 00:04:30,240 --> 00:04:33,200 Speaker 1: our values and be a leader for the international community 67 00:04:33,839 --> 00:04:36,680 Speaker 1: to fight in tolerance, and that's just not what President 68 00:04:36,680 --> 00:04:40,480 Speaker 1: Trump has done. Senator Cardonal Maryland with us, of course 69 00:04:40,480 --> 00:04:44,040 Speaker 1: a Democrat, I think there's like four Republicans left in 70 00:04:44,040 --> 00:04:48,200 Speaker 1: in Maryland's kidding. Of course we have a Republican governor, 71 00:04:48,240 --> 00:04:52,880 Speaker 1: so well, then there's him and three others. A kid 72 00:04:53,120 --> 00:04:56,080 Speaker 1: van Cardon. The victim to jour for the President United 73 00:04:56,120 --> 00:05:00,400 Speaker 1: States is Colonel Graham of South Carolina. Lindsay Graham. Uh. 74 00:05:00,640 --> 00:05:03,120 Speaker 1: He is a most interesting guy with his focus on 75 00:05:03,160 --> 00:05:06,120 Speaker 1: the military. He's been someone who's done battle with the 76 00:05:06,200 --> 00:05:10,000 Speaker 1: team party. What is the damage that you see of 77 00:05:10,400 --> 00:05:13,160 Speaker 1: an executive officer who has to take a shot at 78 00:05:13,200 --> 00:05:18,520 Speaker 1: a given senator every every other day? If you would, well, 79 00:05:18,560 --> 00:05:21,839 Speaker 1: you're you're correct. Us Senator Graham has been outspoken against 80 00:05:22,040 --> 00:05:24,599 Speaker 1: President Trump on so many different issues. We've worked together 81 00:05:24,680 --> 00:05:29,160 Speaker 1: two of us on Russia strategy to counter Russia's aggression 82 00:05:29,160 --> 00:05:32,040 Speaker 1: against the United States when the President was very solid 83 00:05:32,120 --> 00:05:35,320 Speaker 1: about in fact moving in the wrong direction. Um. And 84 00:05:35,760 --> 00:05:38,480 Speaker 1: Senator Graham has been uh, what he normally does. He 85 00:05:38,520 --> 00:05:40,839 Speaker 1: speaks after what he believes in. But we need more 86 00:05:40,839 --> 00:05:44,039 Speaker 1: senators do exactly what Sender Graham has done. Will they 87 00:05:44,160 --> 00:05:48,800 Speaker 1: in from September onwards? I hope? So you know, obviously 88 00:05:48,839 --> 00:05:51,640 Speaker 1: we returned in September and our number one agenda is 89 00:05:51,680 --> 00:05:53,960 Speaker 1: to pass a budget deal with the debt ceiling and 90 00:05:54,000 --> 00:05:57,039 Speaker 1: to take up tax reform. So there we have major 91 00:05:57,120 --> 00:05:59,280 Speaker 1: hurdles that have to be accomplished before the end of 92 00:05:59,320 --> 00:06:01,760 Speaker 1: the month. So it'd be difficult to see how we 93 00:06:01,880 --> 00:06:06,560 Speaker 1: get all trying to work together Democrats and Republicans and 94 00:06:06,839 --> 00:06:09,560 Speaker 1: sort of putting the President aside. In Francina, and please 95 00:06:09,640 --> 00:06:12,280 Speaker 1: to inform you in Senator card and you as well, 96 00:06:12,560 --> 00:06:15,480 Speaker 1: that we moved on from the Senator from South Carolina. 97 00:06:15,760 --> 00:06:18,360 Speaker 1: We're now enjoying going after the senator of the junior 98 00:06:18,400 --> 00:06:23,200 Speaker 1: Senator of Arizona. Uh, this Senator Cardon, We're honored to 99 00:06:23,279 --> 00:06:26,120 Speaker 1: have you on to respond to this the President United 100 00:06:26,160 --> 00:06:29,640 Speaker 1: States moments ago. Great to see that Dr Kelly Ward 101 00:06:29,720 --> 00:06:33,440 Speaker 1: is running against Flake Jeff Flake, who is weak capital 102 00:06:33,640 --> 00:06:36,960 Speaker 1: w e a k a week on borders, crime, and 103 00:06:37,080 --> 00:06:42,120 Speaker 1: a non factor in the Senate. He's toxic exclamation point. 104 00:06:42,400 --> 00:06:46,240 Speaker 1: Senator Cardon, give us the real world of looking across 105 00:06:46,279 --> 00:06:49,800 Speaker 1: the aisle at the good Jeff Flake of Arizona. How 106 00:06:49,920 --> 00:06:55,160 Speaker 1: toxic is he? Well, you know clearly what the American 107 00:06:55,240 --> 00:06:57,720 Speaker 1: people want us to do is Democrats and Republicans to 108 00:06:57,800 --> 00:07:00,400 Speaker 1: work together to get things done in the best interests 109 00:07:00,400 --> 00:07:03,640 Speaker 1: of the American people. When you're talking about issues such 110 00:07:03,680 --> 00:07:07,080 Speaker 1: as a Russia's attack against the United States, or you're 111 00:07:07,120 --> 00:07:10,480 Speaker 1: looking at racism, or you're you're looking at tax reform 112 00:07:10,600 --> 00:07:13,400 Speaker 1: or healthcare, the American people do not want us to 113 00:07:13,400 --> 00:07:16,040 Speaker 1: be partisans. They want us to work across the be all. 114 00:07:16,440 --> 00:07:19,440 Speaker 1: President Tromp I can't figure him out. If you don't 115 00:07:19,480 --> 00:07:23,520 Speaker 1: agree with them, you're his enemy. And it's his uh 116 00:07:23,960 --> 00:07:28,160 Speaker 1: bullish attitude is just terrible. He's a bully and it 117 00:07:28,280 --> 00:07:30,760 Speaker 1: is not what we should have President United States, and 118 00:07:31,120 --> 00:07:33,320 Speaker 1: we felt we're paying a heavy price for it today. 119 00:07:33,360 --> 00:07:35,760 Speaker 1: The Senator, thank you for joining US this morning. Coast 120 00:07:35,760 --> 00:07:51,880 Speaker 1: to Coast Senator Cardon is, the Democrat from Maryland. David 121 00:07:51,920 --> 00:07:54,960 Speaker 1: Harrold joins US now. He has been on fire with 122 00:07:55,080 --> 00:08:00,240 Speaker 1: international investment, with a terrific track record with Harrold, with 123 00:08:00,360 --> 00:08:05,560 Speaker 1: Harrod Harris associates. David is Is, many of our listeners 124 00:08:05,680 --> 00:08:10,560 Speaker 1: know Coast to Coast you have been involved in politics 125 00:08:10,720 --> 00:08:16,880 Speaker 1: in your Wisconsin. I believe of a Republican favor. You've 126 00:08:16,920 --> 00:08:20,880 Speaker 1: been a student of what's going on in Washington. Mr 127 00:08:20,960 --> 00:08:24,800 Speaker 1: Trump won the election off of Wisconsin. How is the 128 00:08:24,920 --> 00:08:30,120 Speaker 1: uproar playing in your Wisconsin. Well, I'm actually heading up 129 00:08:30,160 --> 00:08:33,520 Speaker 1: there in just a few hours. I have some business 130 00:08:33,640 --> 00:08:35,240 Speaker 1: up there, and then I'm gonna stay up there for 131 00:08:35,240 --> 00:08:41,200 Speaker 1: the weekend. I think the the whole Trump administration has 132 00:08:41,440 --> 00:08:45,280 Speaker 1: gone through periods of uproars, and you know, they things 133 00:08:45,320 --> 00:08:48,360 Speaker 1: settled down and then something else comes up. Things settled 134 00:08:48,360 --> 00:08:51,360 Speaker 1: down and something comes up. It's almost as if people 135 00:08:51,360 --> 00:08:53,880 Speaker 1: are getting used to it. And I think some of 136 00:08:53,920 --> 00:08:58,439 Speaker 1: the basic reasons why Mr Trump won are still in place, 137 00:08:59,400 --> 00:09:03,320 Speaker 1: and even though he can't seem to keep himself out 138 00:09:03,320 --> 00:09:07,680 Speaker 1: of these uproars, some of the policy prescriptions, some of 139 00:09:07,679 --> 00:09:11,560 Speaker 1: the people around him, are are being very well received 140 00:09:11,600 --> 00:09:15,040 Speaker 1: in not just Wisconsin, but we'll call it the places 141 00:09:15,080 --> 00:09:18,320 Speaker 1: that pushed him over the line. And so I think 142 00:09:18,360 --> 00:09:21,760 Speaker 1: people just realize that, you know, this guy is not 143 00:09:22,040 --> 00:09:25,880 Speaker 1: on a horizontal plane. There's a third dimension. He's not 144 00:09:25,960 --> 00:09:29,600 Speaker 1: a typical politician. He's not as coached as the typical 145 00:09:29,679 --> 00:09:32,720 Speaker 1: politicians are. In fact, he doesn't quite know their game, 146 00:09:33,360 --> 00:09:37,240 Speaker 1: and these things are hurting him. But here's the David, 147 00:09:37,360 --> 00:09:39,520 Speaker 1: here's what all of our audience was to know more 148 00:09:39,520 --> 00:09:43,160 Speaker 1: than anyone we speak to. You understand the fiber and 149 00:09:43,240 --> 00:09:46,360 Speaker 1: fabric of the Speaker of the House, Paul Ryan. There 150 00:09:46,360 --> 00:09:51,440 Speaker 1: seems to be a primal Democrat and Republican scream. Speaker Ryan, 151 00:09:52,040 --> 00:09:57,240 Speaker 1: do something. What is your prescription for Paul Ryan? Compass autumn. 152 00:09:58,280 --> 00:10:02,000 Speaker 1: They have to move policy, see along. They cannot get 153 00:10:02,040 --> 00:10:06,240 Speaker 1: snagged up as they did in the Healthcare plan and 154 00:10:06,320 --> 00:10:09,679 Speaker 1: Healthcare Bill. There are a number of things which they 155 00:10:09,679 --> 00:10:12,920 Speaker 1: should be easily able to or maybe not easily, but 156 00:10:12,960 --> 00:10:15,320 Speaker 1: they should be able to come to grips on. So 157 00:10:15,520 --> 00:10:18,480 Speaker 1: they have to get runs on the board. And it 158 00:10:18,520 --> 00:10:21,360 Speaker 1: doesn't have to be a grand slam all at once. 159 00:10:21,400 --> 00:10:24,880 Speaker 1: You have to start chipping away at the agenda, the agenda, 160 00:10:24,960 --> 00:10:31,559 Speaker 1: regulatory reformed, agenda, tax reform, uh, you know, the the agenda, infrastructure. 161 00:10:32,080 --> 00:10:35,120 Speaker 1: These are things that they have to start legislating. And 162 00:10:36,120 --> 00:10:39,719 Speaker 1: both Mr McConnell and Mr Ryan I believe they understand 163 00:10:39,760 --> 00:10:44,200 Speaker 1: this quite clearly. UM healthcare. They unfortunately tackled the most 164 00:10:44,240 --> 00:10:49,160 Speaker 1: tricky and difficult issue first. Hi, David, it's Francine. Will 165 00:10:49,200 --> 00:10:52,400 Speaker 1: President Trump be facing? So he's facing a mass exodus 166 00:10:52,480 --> 00:10:55,080 Speaker 1: right of the CEOs he wants courted. If he goes 167 00:10:55,120 --> 00:10:59,120 Speaker 1: back to policy, can he get them back? Yeah? I 168 00:10:59,160 --> 00:11:01,600 Speaker 1: don't know if it is a max exodus. I mean, 169 00:11:01,679 --> 00:11:04,640 Speaker 1: certainly there are some people who wanted to make a statement. 170 00:11:05,160 --> 00:11:07,480 Speaker 1: But I think if in private, you would talk to 171 00:11:07,520 --> 00:11:10,280 Speaker 1: some CEOs and I won't mention who, but I spoke 172 00:11:10,320 --> 00:11:13,520 Speaker 1: to the CEO of a global company last night, and 173 00:11:13,760 --> 00:11:16,959 Speaker 1: clearly they are aligned with you know, it's never a 174 00:11:17,040 --> 00:11:22,280 Speaker 1: hundred percent Francine, but they're probably aligned with of what 175 00:11:22,400 --> 00:11:25,760 Speaker 1: the President is trying to accomplish. And I think what 176 00:11:25,800 --> 00:11:29,120 Speaker 1: we've seen happen is CEO has become very thin skinned, 177 00:11:29,200 --> 00:11:32,240 Speaker 1: that they become very scared and and this has been 178 00:11:32,240 --> 00:11:36,240 Speaker 1: boiling over over the years. UM, and they don't want 179 00:11:36,280 --> 00:11:39,200 Speaker 1: to take on social activists, so they just kind of 180 00:11:39,280 --> 00:11:43,560 Speaker 1: quietly give them some uh and so, and this is 181 00:11:43,600 --> 00:11:46,719 Speaker 1: what we're seeing today. Um, they become a bit more 182 00:11:46,760 --> 00:11:51,560 Speaker 1: political and less a political. So and that's that's their choice. 183 00:11:51,679 --> 00:11:54,000 Speaker 1: That's their choice, and if that's what they want to do, fine. 184 00:11:54,480 --> 00:11:58,320 Speaker 1: But I think still the Trump agenda is consistent with 185 00:11:59,320 --> 00:12:03,680 Speaker 1: uh most CEOs want and as such they will help 186 00:12:03,800 --> 00:12:07,880 Speaker 1: working to get that agenda. What I'm trying to understand 187 00:12:07,920 --> 00:12:11,120 Speaker 1: is that are the goals more difficult to achieve if 188 00:12:11,160 --> 00:12:13,640 Speaker 1: the business community would now rather stay out of the 189 00:12:13,640 --> 00:12:17,840 Speaker 1: White House. Um, I don't think so. I think the 190 00:12:17,880 --> 00:12:21,400 Speaker 1: business community supportive of the goals, and I think they 191 00:12:21,400 --> 00:12:24,680 Speaker 1: will work behind the scenes to help press the accomplishment 192 00:12:24,720 --> 00:12:28,719 Speaker 1: of these goals just because they're not on these formal councils, 193 00:12:28,840 --> 00:12:32,240 Speaker 1: especially given as the president's experience in business in his 194 00:12:32,400 --> 00:12:35,480 Speaker 1: relationships with many of these people. Anyway, it isn't like 195 00:12:35,520 --> 00:12:38,440 Speaker 1: the last president who kind of disdained business and didn't 196 00:12:38,480 --> 00:12:43,040 Speaker 1: have relationships that he might have had with these business people. 197 00:12:44,160 --> 00:12:46,160 Speaker 1: Would he be able to put the pass tax reform 198 00:12:46,240 --> 00:12:49,120 Speaker 1: through if he if he gets you know, back on 199 00:12:49,240 --> 00:12:52,400 Speaker 1: message inverted commas, Yeah, I think you should be able 200 00:12:52,400 --> 00:12:54,400 Speaker 1: to get tax reform, and especially when you look at 201 00:12:54,440 --> 00:12:58,560 Speaker 1: areas like corporate tax reform, where even in the last 202 00:12:58,600 --> 00:13:01,800 Speaker 1: few years you've had Democrats supportive of it, and I 203 00:13:01,800 --> 00:13:03,680 Speaker 1: think that these are the things that they must really 204 00:13:03,679 --> 00:13:06,760 Speaker 1: focus on. And I'm glad, for instance, that they pulled 205 00:13:06,760 --> 00:13:10,040 Speaker 1: the border adjustment tax out of the one of the bills, 206 00:13:10,080 --> 00:13:13,560 Speaker 1: because this just seemed to be a gimmick that unless 207 00:13:13,600 --> 00:13:17,440 Speaker 1: you had a real strong belief in certain portions of 208 00:13:17,640 --> 00:13:20,120 Speaker 1: economic theory, it wasn't going to work. It was going 209 00:13:20,200 --> 00:13:23,400 Speaker 1: to be very distortive. And they pulled that out and 210 00:13:23,480 --> 00:13:26,360 Speaker 1: so hopefully now they could start marching ahead with a 211 00:13:26,880 --> 00:13:32,120 Speaker 1: less distortive, more clean tax reform bill. David, your world 212 00:13:32,240 --> 00:13:34,079 Speaker 1: is boom or bust, and you have been a boom 213 00:13:34,120 --> 00:13:37,719 Speaker 1: boom boom. You have been extraordinary track record. Is a 214 00:13:37,760 --> 00:13:41,000 Speaker 1: boat left the dock and international investment or can other 215 00:13:41,520 --> 00:13:46,280 Speaker 1: people climb on? Uss? Hero? Now? I think that the boat, 216 00:13:46,559 --> 00:13:50,080 Speaker 1: you know, the easy boardings has happened. Um, if we 217 00:13:50,160 --> 00:13:53,000 Speaker 1: take the baseball analogy time, I think we're probably in 218 00:13:53,040 --> 00:13:55,560 Speaker 1: about the third or fourth ending, so we're a third 219 00:13:55,559 --> 00:13:58,520 Speaker 1: of the way halfway through the game. But we've finally seen. 220 00:13:58,720 --> 00:14:01,800 Speaker 1: What we've finally seen is kind of a recovery in 221 00:14:01,880 --> 00:14:06,360 Speaker 1: one of the world's biggest economic regions that has been 222 00:14:06,840 --> 00:14:11,840 Speaker 1: slow to recover, uh since the last global recession, and 223 00:14:11,840 --> 00:14:14,120 Speaker 1: now we're finally starting to see it. And it's coming 224 00:14:14,120 --> 00:14:16,160 Speaker 1: from a number of different reasons. I mean, there's been 225 00:14:16,200 --> 00:14:21,440 Speaker 1: accommodative monetary policy. Yes, there has been structural economic reform 226 00:14:21,520 --> 00:14:26,280 Speaker 1: in certain areas in the periphery that needed it Ireland, Spain, Portugal, 227 00:14:26,400 --> 00:14:32,160 Speaker 1: even Italy, Francine and minds Italy, um. And so we 228 00:14:32,160 --> 00:14:35,680 Speaker 1: we've seen recovery take place, and we've seen it kind 229 00:14:35,680 --> 00:14:39,640 Speaker 1: of go through uh, this political cycle where there was 230 00:14:39,680 --> 00:14:44,000 Speaker 1: a fear that economic nationalism and whatever. So all of 231 00:14:44,000 --> 00:14:46,440 Speaker 1: this is finally starting to get behind us, and we're 232 00:14:46,480 --> 00:14:51,160 Speaker 1: starting to see growth and growth and earnings and as such, 233 00:14:51,200 --> 00:14:53,760 Speaker 1: when you compare it to the valuations that you are 234 00:14:53,800 --> 00:14:56,880 Speaker 1: getting in Europe today verse where we are in the 235 00:14:56,920 --> 00:15:01,240 Speaker 1: earning cycle, there is there is a compelling argument to 236 00:15:01,240 --> 00:15:04,240 Speaker 1: be now valuations are all higher than they were a 237 00:15:04,320 --> 00:15:06,120 Speaker 1: here ago. So that's why you hate a third or 238 00:15:06,120 --> 00:15:09,720 Speaker 1: fourth thing, David. I don't care third or fourth thinning, David. 239 00:15:09,760 --> 00:15:12,080 Speaker 1: Can the Brewers catch the Cubs? I mean four in 240 00:15:12,080 --> 00:15:15,840 Speaker 1: a row, many Peanuts killing it against Pittsburgh. Can your 241 00:15:15,880 --> 00:15:19,920 Speaker 1: Milwaukee Brewers catch the dreaded Chicago Cubs. Well, they're not 242 00:15:20,000 --> 00:15:22,640 Speaker 1: the dreaded Chicago Cubs, Tom, They're They're a very good 243 00:15:22,640 --> 00:15:25,920 Speaker 1: baseball club. And I think the Cubs just have too 244 00:15:26,000 --> 00:15:30,320 Speaker 1: much talent. And really, yeah, yeah, I think the Cubs 245 00:15:30,320 --> 00:15:33,800 Speaker 1: are in a good position. Milwaukee Brewers four in a row, 246 00:15:33,960 --> 00:15:36,400 Speaker 1: and there it is. But now the Green Bay Packers 247 00:15:36,440 --> 00:15:39,920 Speaker 1: will in all likelihood when the Super Bowl this coming 248 00:15:40,040 --> 00:15:44,360 Speaker 1: up in January. Do you understand that Francine Lakwi knows nothing, 249 00:15:44,480 --> 00:15:47,800 Speaker 1: David about the Green Bay Packs? You know, I man, 250 00:15:48,160 --> 00:15:53,280 Speaker 1: I gotta take you to a game. You know, Tom 251 00:15:53,320 --> 00:15:55,280 Speaker 1: will come too, and they'll be drinking those red things. 252 00:15:55,320 --> 00:15:58,960 Speaker 1: You're those put a cheese head hat on, will give 253 00:15:58,960 --> 00:16:05,240 Speaker 1: you a broad worse, Fritzi. I would pay, I would 254 00:16:05,520 --> 00:16:09,560 Speaker 1: I would pay to see only if you both come 255 00:16:09,640 --> 00:16:13,200 Speaker 1: to either the Pallio in Sienna or a cricket game. 256 00:16:14,440 --> 00:16:15,760 Speaker 1: I want to go to this. I want to go 257 00:16:15,800 --> 00:16:20,280 Speaker 1: to the Sienna pa that's going to march the horse yesterday. 258 00:16:20,560 --> 00:16:22,840 Speaker 1: I'm just trying to get a beverage, David. I'm trying 259 00:16:22,840 --> 00:16:24,640 Speaker 1: to get a beverage in my choice with Francine to 260 00:16:24,720 --> 00:16:27,360 Speaker 1: Claridge is and all I'm trying to look for. We'll 261 00:16:27,360 --> 00:16:30,680 Speaker 1: continue with David Harrow. David, let's really stay on what 262 00:16:30,800 --> 00:16:34,040 Speaker 1: has made you successful, and so much of that was 263 00:16:34,120 --> 00:16:37,880 Speaker 1: patients on European banks from the so called lemon low 264 00:16:38,560 --> 00:16:43,280 Speaker 1: b MP Perry France up a hundred thirteen point five 265 00:16:43,320 --> 00:16:46,320 Speaker 1: percent per year. You enjoyed a second chance to buy it, 266 00:16:46,760 --> 00:16:50,280 Speaker 1: uh in the depths of two thousand and twelve as well? 267 00:16:50,720 --> 00:16:54,080 Speaker 1: Is there more room to run on the European banks 268 00:16:54,320 --> 00:16:57,880 Speaker 1: because they're not as Anglo American as Jamie Diamond's fortress. 269 00:16:58,920 --> 00:17:00,720 Speaker 1: You know, this is one of the areas where I 270 00:17:00,760 --> 00:17:03,840 Speaker 1: think there is still a deep pocket of value around 271 00:17:03,880 --> 00:17:07,440 Speaker 1: the globe. Today's in the European financial sector, whether it 272 00:17:07,560 --> 00:17:10,520 Speaker 1: be you mentioned B and P or Aliance or even 273 00:17:10,560 --> 00:17:15,080 Speaker 1: credit suites and recovery story. Um they're in Testas al Paolo, 274 00:17:15,160 --> 00:17:18,960 Speaker 1: the Italian bank. I mean, what has happened is over 275 00:17:19,040 --> 00:17:21,679 Speaker 1: the last I don't know, seven eight, nine, ten years, 276 00:17:22,480 --> 00:17:25,240 Speaker 1: not only have stocks, which have always been kind of 277 00:17:25,240 --> 00:17:30,440 Speaker 1: a conduit to how people feel about the global economic situation, 278 00:17:30,520 --> 00:17:34,400 Speaker 1: but the banks and European banks in particular, have moved 279 00:17:34,840 --> 00:17:39,639 Speaker 1: so abruptly during any kind of macroeconomic disturbance. They have 280 00:17:39,800 --> 00:17:43,159 Speaker 1: really been the lightning rod. And despite the fact that 281 00:17:43,240 --> 00:17:46,920 Speaker 1: the prices of these stocks have been very reactive, the 282 00:17:47,080 --> 00:17:51,040 Speaker 1: underlying build up of intrinsic value have not. For instance, 283 00:17:51,080 --> 00:17:53,280 Speaker 1: in the last two or three years, when people feared 284 00:17:53,320 --> 00:17:56,200 Speaker 1: all these negative rates and low long growth, which is 285 00:17:56,560 --> 00:18:01,200 Speaker 1: destroyed banks earnings, they haven't. They have because the management 286 00:18:01,240 --> 00:18:04,000 Speaker 1: teams have just put their heads down and continue to 287 00:18:04,119 --> 00:18:06,800 Speaker 1: cut costs. They built capital, they did all the things 288 00:18:06,840 --> 00:18:11,520 Speaker 1: are supposed to do, and most importantly they have protected earnings. 289 00:18:12,160 --> 00:18:14,200 Speaker 1: So this was during a bad period and now we're 290 00:18:14,200 --> 00:18:16,760 Speaker 1: starting to have a good period. Low rances continue to 291 00:18:16,760 --> 00:18:20,080 Speaker 1: trickle down and now credit grow at the starting up. 292 00:18:20,160 --> 00:18:22,240 Speaker 1: I want, I want Fancying to get in here with 293 00:18:22,280 --> 00:18:24,119 Speaker 1: their expertise of francy. And I would note with a 294 00:18:24,119 --> 00:18:27,560 Speaker 1: big dividend four point one percent and BMP perry, but 295 00:18:28,080 --> 00:18:31,600 Speaker 1: that total return from the Lehman low is around sixteen 296 00:18:31,720 --> 00:18:34,680 Speaker 1: point four percent per year. Yeah, and if you look 297 00:18:34,680 --> 00:18:37,120 Speaker 1: at the French banks, of course they've they've been performing 298 00:18:37,520 --> 00:18:39,479 Speaker 1: um you know for the last four years. I get 299 00:18:39,520 --> 00:18:41,720 Speaker 1: stronger than the Italian banks. So my question to David 300 00:18:41,760 --> 00:18:44,080 Speaker 1: would be, why take a bet on Italian banks when 301 00:18:44,119 --> 00:18:47,680 Speaker 1: we have a possible you know, elections coming up certainly 302 00:18:47,720 --> 00:18:51,680 Speaker 1: before May of next year that could go badly wrong. Yeah, 303 00:18:51,720 --> 00:18:53,639 Speaker 1: they could go wrong. And again this is one of 304 00:18:53,640 --> 00:18:57,800 Speaker 1: the reasons why all these these banks and financials of 305 00:18:58,359 --> 00:19:01,440 Speaker 1: having not really performed, because people keep fearing the next 306 00:19:01,480 --> 00:19:04,199 Speaker 1: reference and the next election and what's going to happen. 307 00:19:05,080 --> 00:19:08,479 Speaker 1: But ultimately what happens is these businesses adjust, the system 308 00:19:08,600 --> 00:19:15,199 Speaker 1: heals itself, and these fears often to me, provide buying opportunities. 309 00:19:15,560 --> 00:19:18,840 Speaker 1: You have to look through the cycle. What's actually happened 310 00:19:18,840 --> 00:19:22,080 Speaker 1: in the Italian banking sector has been very good. There's 311 00:19:22,119 --> 00:19:25,119 Speaker 1: finally some clean up going on, and we're starting to 312 00:19:25,160 --> 00:19:29,960 Speaker 1: see economic growth, and the political fears perhaps today are 313 00:19:30,080 --> 00:19:31,720 Speaker 1: less than what they were a few months ago, and 314 00:19:31,760 --> 00:19:33,800 Speaker 1: we start to see some of the results of the 315 00:19:33,880 --> 00:19:37,359 Speaker 1: local elections and what some of the periphery parties don't 316 00:19:37,400 --> 00:19:40,200 Speaker 1: seem to be fearing as strongly. So when you combine 317 00:19:40,200 --> 00:19:42,520 Speaker 1: all these things, I think, if anything, it leads to 318 00:19:42,960 --> 00:19:46,119 Speaker 1: perhaps there should be more interest in Italian banks, except 319 00:19:46,160 --> 00:19:49,600 Speaker 1: for the fact that again these prices have bounced in 320 00:19:50,119 --> 00:19:53,360 Speaker 1: Italian banks in the last year over year, probably even 321 00:19:53,400 --> 00:19:55,800 Speaker 1: more so than some of the others, so that again 322 00:19:55,840 --> 00:19:58,920 Speaker 1: the easy pickings are over, but I think there's still 323 00:19:58,920 --> 00:20:02,400 Speaker 1: a good opportunity there. Um, David, what do you make 324 00:20:02,440 --> 00:20:05,200 Speaker 1: of so the ECB officials today we're expressing concern over 325 00:20:05,480 --> 00:20:07,760 Speaker 1: the risk of a euro overshoe. What would that do 326 00:20:07,960 --> 00:20:11,040 Speaker 1: to bank valuations? Now? You know what I think eventually 327 00:20:11,080 --> 00:20:13,160 Speaker 1: what has to happen is in the short term, who 328 00:20:13,200 --> 00:20:15,919 Speaker 1: knows what kind of noises out there. But over the 329 00:20:15,920 --> 00:20:18,840 Speaker 1: medium and long term, if the European economy continues to 330 00:20:18,920 --> 00:20:22,600 Speaker 1: pick up strength, and if you continue to see stabilization 331 00:20:22,640 --> 00:20:26,879 Speaker 1: in price levels, you will begin to see interest rate normalization, 332 00:20:26,920 --> 00:20:32,680 Speaker 1: which will be very good for European banks. No, it's 333 00:20:32,720 --> 00:20:34,919 Speaker 1: not gonna happen. It's not going to happen overnight. I 334 00:20:34,920 --> 00:20:37,160 Speaker 1: don't believe it's going to happen overnight. But I think 335 00:20:37,160 --> 00:20:41,520 Speaker 1: we're getting towards the bottom of this whole negative low 336 00:20:41,560 --> 00:20:45,360 Speaker 1: interest rate cycle. And I'd rather be towards the bottom 337 00:20:45,400 --> 00:20:48,800 Speaker 1: and investor, and not towards the beginning of getting us 338 00:20:48,840 --> 00:20:51,080 Speaker 1: to the bottom. Do you have a small local Italian 339 00:20:51,119 --> 00:20:53,440 Speaker 1: bank Francine can load the boat on so she can 340 00:20:53,480 --> 00:20:58,800 Speaker 1: retire young. And I told her to invest the cell pollogy. 341 00:20:58,800 --> 00:21:03,080 Speaker 1: You get a nice divot in you probably that's a 342 00:21:03,160 --> 00:21:06,159 Speaker 1: widows stock. She needs something gamey or do you have 343 00:21:06,240 --> 00:21:09,520 Speaker 1: something on Sicily where she can like, you know, you know, 344 00:21:09,560 --> 00:21:11,560 Speaker 1: is there like a small bank on Sicily that she 345 00:21:11,600 --> 00:21:14,200 Speaker 1: can go visit. I just want to retire, forget investing. 346 00:21:14,720 --> 00:21:17,159 Speaker 1: If she wants something gamey, she could take her simple 347 00:21:17,280 --> 00:21:20,119 Speaker 1: race and you know that won't get around the track. 348 00:21:20,440 --> 00:21:27,320 Speaker 1: Very good, David Harrow, thank you so much, your Betty 349 00:21:27,480 --> 00:21:29,879 Speaker 1: Chip for the day with the Deep and Harrow of 350 00:21:29,960 --> 00:21:33,200 Speaker 1: Harris associates, I should point out, folks within the comedy 351 00:21:33,240 --> 00:21:36,040 Speaker 1: that we do not do bio hold cell here and 352 00:21:36,119 --> 00:21:41,560 Speaker 1: we scrupulously identify any positions we may hold. In Europe 353 00:21:41,560 --> 00:21:44,080 Speaker 1: we don't at all. Yeah, you know in the UK 354 00:21:44,600 --> 00:21:46,840 Speaker 1: if we just don't do biold sell at Bloomberg. We 355 00:21:46,880 --> 00:21:49,439 Speaker 1: decided not to do that a long time ago. That 356 00:21:49,560 --> 00:21:53,000 Speaker 1: was great, David Harrow, thank you so much. Congratulations on 357 00:21:53,080 --> 00:22:08,679 Speaker 1: your international patience for those of you whatever ye'r ilk, 358 00:22:09,000 --> 00:22:14,240 Speaker 1: whatever your persuasion dying for long term perspective on this 359 00:22:14,440 --> 00:22:18,080 Speaker 1: American economy. This is your interview of the week. If 360 00:22:18,119 --> 00:22:21,440 Speaker 1: not for the month of August. Douglas Brinkley is at 361 00:22:21,520 --> 00:22:24,760 Speaker 1: Rice University. He's one of the nation's treasure I get 362 00:22:24,760 --> 00:22:27,080 Speaker 1: a royalty check from him every year for his one 363 00:22:27,160 --> 00:22:30,800 Speaker 1: volume Cronkite, which I tell every single media type that 364 00:22:30,840 --> 00:22:33,240 Speaker 1: walks in here is the one book to read. I 365 00:22:33,280 --> 00:22:36,080 Speaker 1: tell that Doug, particularly to the interns, to shut up 366 00:22:36,080 --> 00:22:39,480 Speaker 1: and read God cronk Kite, and you'll do better than good. 367 00:22:40,240 --> 00:22:45,080 Speaker 1: You've done so much for our American fabric. How much 368 00:22:45,119 --> 00:22:49,040 Speaker 1: are we torn asunder in this August of two thousand seventeen. 369 00:22:50,720 --> 00:22:53,679 Speaker 1: Uh well, thank you for the nice words about cronk Kite. Um. 370 00:22:54,000 --> 00:22:57,360 Speaker 1: Look I teach at Rice. I'm about ready to teach 371 00:22:57,400 --> 00:23:00,720 Speaker 1: three classes in US history, and I us tell my 372 00:23:00,920 --> 00:23:04,200 Speaker 1: students the point of history is to remind us of 373 00:23:04,280 --> 00:23:08,639 Speaker 1: our own times. Aren't uniquely oppressive. As bad as things are, 374 00:23:08,800 --> 00:23:11,679 Speaker 1: this August is divided as we feel our country has 375 00:23:11,720 --> 00:23:15,399 Speaker 1: gone through worse crucibles. Um, you know, all you have 376 00:23:15,480 --> 00:23:17,600 Speaker 1: to do is to talk about the Civil War and 377 00:23:17,680 --> 00:23:21,240 Speaker 1: the seven hundred thousand dead and a country torn apart, 378 00:23:21,359 --> 00:23:24,240 Speaker 1: or even the fact that during the Vietnam War, when 379 00:23:24,280 --> 00:23:27,560 Speaker 1: we were torn between hawks and doves, we lost over 380 00:23:27,760 --> 00:23:31,480 Speaker 1: you know, fifty thousand US soldiers in Vietnam. So it's 381 00:23:31,480 --> 00:23:35,720 Speaker 1: always important to put things in perspective. With that said, Um, 382 00:23:35,760 --> 00:23:38,480 Speaker 1: it's brutal out there right now. I mean that that 383 00:23:38,640 --> 00:23:43,680 Speaker 1: hatred between Americans is fierce and a Charlotte's Ville, UM, 384 00:23:43,720 --> 00:23:47,439 Speaker 1: I think is a very dark chapter in twenty one 385 00:23:47,640 --> 00:23:52,160 Speaker 1: century American history. We noticed your contribution with Mr Ambrose 386 00:23:52,200 --> 00:23:56,040 Speaker 1: to the Eisenhower Center last night. I was dismayed by 387 00:23:56,080 --> 00:23:59,840 Speaker 1: this simplicity of debate of our first president of your 388 00:24:00,320 --> 00:24:05,639 Speaker 1: states in one are ly whose house overlooked Washington. D 389 00:24:05,760 --> 00:24:10,400 Speaker 1: c um tell me here how you synthesize this debate 390 00:24:10,840 --> 00:24:16,760 Speaker 1: of Washington and Robert E. Lee. Um, Well, you know 391 00:24:16,920 --> 00:24:20,760 Speaker 1: you have. We We're look where a more multicultural society 392 00:24:21,200 --> 00:24:26,000 Speaker 1: progress marches onward, a new generation. Uh is very removed 393 00:24:26,119 --> 00:24:29,360 Speaker 1: from even the idea of why there would be Confederate 394 00:24:29,840 --> 00:24:33,040 Speaker 1: monuments some spread all over the country. When you live 395 00:24:33,040 --> 00:24:35,600 Speaker 1: in the South like I do. I was born in Georgia, 396 00:24:36,160 --> 00:24:38,879 Speaker 1: lived in Louisiana. I'm living in Texas now it's a 397 00:24:38,880 --> 00:24:41,760 Speaker 1: little closer to home. You go small towns and you 398 00:24:41,800 --> 00:24:44,800 Speaker 1: see a Civil War statue. I'm of the belief that 399 00:24:44,840 --> 00:24:47,920 Speaker 1: these Confederate statues need to come down, and the ones 400 00:24:48,000 --> 00:24:53,399 Speaker 1: that American presidents should stay up any any George Washington, 401 00:24:53,560 --> 00:24:56,679 Speaker 1: the one our revolution for us who fought at the 402 00:24:56,720 --> 00:24:59,800 Speaker 1: vallet of Valley Forge Um who you know, one a 403 00:25:00,080 --> 00:25:02,199 Speaker 1: York County was the person. We wouldn't have been a 404 00:25:02,200 --> 00:25:06,560 Speaker 1: country without Washington. Jefferson, with the Declaration of Independence, the 405 00:25:06,680 --> 00:25:11,080 Speaker 1: Louisiana Purchase. We could go on, but they fought for America. 406 00:25:11,119 --> 00:25:13,680 Speaker 1: They were fought to the United States. The Confederates broke 407 00:25:13,720 --> 00:25:17,719 Speaker 1: away from the Union. They were secessionists. They tried to 408 00:25:17,840 --> 00:25:23,040 Speaker 1: undermine um our American democracy. And in fact, both Jefferson 409 00:25:23,160 --> 00:25:25,320 Speaker 1: Davis and Robert E. Leep at the ends of their 410 00:25:25,359 --> 00:25:28,560 Speaker 1: lives said no monuments. We know we need to unite. 411 00:25:28,640 --> 00:25:32,600 Speaker 1: Don't don't do not us any favors by honoring us. Douglas. 412 00:25:32,720 --> 00:25:35,840 Speaker 1: I really want to emphasize here that the effort that 413 00:25:35,880 --> 00:25:38,760 Speaker 1: we've done at Bloomberg on the economy and Bloomberg surveillance 414 00:25:39,280 --> 00:25:42,560 Speaker 1: is under the guise of an a historical America. I 415 00:25:42,640 --> 00:25:45,639 Speaker 1: tweeted out last night the killer Angels of Michael Scharmon 416 00:25:45,760 --> 00:25:48,280 Speaker 1: and Gettysburg. I mean, I think a lot of people 417 00:25:48,320 --> 00:25:53,400 Speaker 1: are completely ignorant of the debate of the Confederacy at 418 00:25:53,400 --> 00:25:57,399 Speaker 1: the important point of Gettysburg, the debate of Longstreet and 419 00:25:57,520 --> 00:26:01,960 Speaker 1: Robert E. Lee about exactly how to prosecute an underfunded 420 00:26:01,960 --> 00:26:05,560 Speaker 1: war against the Union. We are we that a historical 421 00:26:05,640 --> 00:26:08,800 Speaker 1: now we are. And I don't blame the young people. 422 00:26:08,960 --> 00:26:13,159 Speaker 1: I blame us, the adults. We have, Um, we have 423 00:26:13,240 --> 00:26:18,439 Speaker 1: denigrated to the importance of American history. I have three kids, um, 424 00:26:19,080 --> 00:26:21,879 Speaker 1: in either middle school or high school, and we just 425 00:26:21,960 --> 00:26:24,240 Speaker 1: don't do a great job out out of it. Now 426 00:26:24,440 --> 00:26:26,119 Speaker 1: you know, parents are going to have to be the 427 00:26:26,160 --> 00:26:30,440 Speaker 1: teachers of history. So, UM, we have a history deficit 428 00:26:30,560 --> 00:26:34,040 Speaker 1: disorder going on in this country. And it hurts us terribly. 429 00:26:34,280 --> 00:26:36,840 Speaker 1: Uh that you know, people don't even You can ask 430 00:26:36,880 --> 00:26:39,080 Speaker 1: a lot of young people and adults, you know what 431 00:26:39,240 --> 00:26:42,080 Speaker 1: what happened in World War One? Nobody will know? Um, 432 00:26:42,560 --> 00:26:44,520 Speaker 1: what was the War of eighteen twelve? You get a 433 00:26:44,520 --> 00:26:48,840 Speaker 1: blank stare on your Uh. And so you almost have 434 00:26:48,960 --> 00:26:51,439 Speaker 1: to as a as a public historian like I am, 435 00:26:51,520 --> 00:26:53,439 Speaker 1: you almost have to be a preacher. You have to 436 00:26:53,480 --> 00:26:57,240 Speaker 1: be preaching the importance of history all the time to 437 00:26:57,400 --> 00:27:00,520 Speaker 1: people and and trying to make fine ways to make 438 00:27:00,560 --> 00:27:04,359 Speaker 1: it more interesting and relevant. What would Hunter Thompson say 439 00:27:04,680 --> 00:27:07,960 Speaker 1: about this moment? You're the executor of his wonderful work. 440 00:27:08,040 --> 00:27:12,840 Speaker 1: What would the gentleman Hunter Thompson say this? Hunter, Hunter? 441 00:27:14,119 --> 00:27:16,120 Speaker 1: You know, Hunter would have had a field day with 442 00:27:16,200 --> 00:27:18,639 Speaker 1: Donald Trump on the same way that he did with 443 00:27:18,800 --> 00:27:23,440 Speaker 1: Richard Nixon, because he always tried to go after bullies 444 00:27:24,280 --> 00:27:29,719 Speaker 1: and people he thought were um, you know, overusing their power. 445 00:27:30,520 --> 00:27:35,520 Speaker 1: Where you know, he would have savagely lampooned Trump in 446 00:27:35,600 --> 00:27:38,840 Speaker 1: many different ways. I'm positive about that. You know, Hunter, 447 00:27:39,359 --> 00:27:42,280 Speaker 1: though believed in the in voting, he Alwold never missed 448 00:27:42,280 --> 00:27:45,400 Speaker 1: one time in his life voting. He would get involved 449 00:27:45,400 --> 00:27:49,240 Speaker 1: with local politics in Colorado. And maybe that's a big point. 450 00:27:49,320 --> 00:27:51,840 Speaker 1: I mean to listeners, we all probably need to be 451 00:27:51,880 --> 00:27:54,320 Speaker 1: a little more politically where we all, you know, when 452 00:27:54,320 --> 00:27:57,040 Speaker 1: when we're on a city council, school board, we have 453 00:27:57,160 --> 00:28:02,560 Speaker 1: to be pro democracy activists. Let's come back and particularly 454 00:28:02,600 --> 00:28:06,000 Speaker 1: bring in Francine Laquix with a more global view. We 455 00:28:06,040 --> 00:28:08,760 Speaker 1: are honored to bring you today worldwide and across America. 456 00:28:09,200 --> 00:28:12,919 Speaker 1: Douglas Brinkley of Rice University, and this is well timed. 457 00:28:12,920 --> 00:28:15,920 Speaker 1: Moments ago, the President of the the United States tweeting out 458 00:28:16,000 --> 00:28:18,840 Speaker 1: quote sad to see the history and culture of our 459 00:28:18,880 --> 00:28:22,240 Speaker 1: great country being ripped apart with the removal of our 460 00:28:22,240 --> 00:28:26,560 Speaker 1: beautiful statues and monuments. We're speaking with Douglas Brinkley of 461 00:28:26,680 --> 00:28:30,960 Speaker 1: Rice University. We've had an impassioned conversation, hugely informative with 462 00:28:31,440 --> 00:28:34,720 Speaker 1: one of our acclaimed historians about the president and the 463 00:28:34,760 --> 00:28:39,280 Speaker 1: moments from Charlottesville. But Francine, what people don't know is 464 00:28:39,320 --> 00:28:42,840 Speaker 1: this is an historian with a wonderful historic perspective on 465 00:28:42,920 --> 00:28:46,840 Speaker 1: Diana Atcherson and particularly his first book, Francine and one 466 00:28:46,840 --> 00:28:51,280 Speaker 1: of my heroes, Jean Monnet. The path to European unity 467 00:28:51,520 --> 00:28:54,239 Speaker 1: was how Brinkley cut his teeth. This is back he 468 00:28:54,320 --> 00:28:58,560 Speaker 1: did this, Francine Brinkley. Young Brinkley would dip the quill 469 00:28:58,840 --> 00:29:02,000 Speaker 1: into the ink pot to hand write his book on 470 00:29:02,080 --> 00:29:05,400 Speaker 1: Jean Monet. It was that long ago, Francine, Douglas Brinkley 471 00:29:05,400 --> 00:29:08,640 Speaker 1: of Rice University. Yeah, professor, before we got into Jean 472 00:29:08,680 --> 00:29:10,800 Speaker 1: money and to the important things that he's done, and 473 00:29:10,840 --> 00:29:13,400 Speaker 1: so maybe that he could have done better. Has America 474 00:29:13,560 --> 00:29:19,040 Speaker 1: changed forever in the law seven days, Um, we're in 475 00:29:19,160 --> 00:29:23,000 Speaker 1: a holding pattern right now, you know, I'll be interested 476 00:29:23,080 --> 00:29:29,800 Speaker 1: to see why people in the upper Midwest Ohio, Minnesota, Wisconsin, 477 00:29:29,960 --> 00:29:33,959 Speaker 1: Michigan don't speak up more about the Civil War issue. 478 00:29:34,400 --> 00:29:37,200 Speaker 1: I mean, these are states that are are celebrating the 479 00:29:37,280 --> 00:29:41,640 Speaker 1: Union Army into constantly viewing this new neo Confederate movement. 480 00:29:41,720 --> 00:29:45,000 Speaker 1: I'm I'm wondering why people in that region never comment 481 00:29:45,120 --> 00:29:48,280 Speaker 1: as a um, you know, about what's going on with 482 00:29:48,320 --> 00:29:53,240 Speaker 1: this sort of new wave of neo Nazi, neo Confederatism. 483 00:29:53,240 --> 00:29:55,920 Speaker 1: But I think we're gonna be okay, We'll get through this. 484 00:29:56,080 --> 00:29:59,560 Speaker 1: I mean, we have elections, we have a very active press, 485 00:30:00,040 --> 00:30:02,920 Speaker 1: we have a judicial system. Our country was built with 486 00:30:03,720 --> 00:30:07,120 Speaker 1: checks and balances. It's definitely a time of a crisis 487 00:30:07,160 --> 00:30:11,560 Speaker 1: and confidence about Congress and about the White House. And 488 00:30:11,720 --> 00:30:14,920 Speaker 1: President Trump, on my view, is skating on very thin 489 00:30:15,000 --> 00:30:18,600 Speaker 1: ice with both the Russia probe and his lack of 490 00:30:18,760 --> 00:30:22,680 Speaker 1: moral authority UM in the wake of Charlottesville. But the 491 00:30:22,760 --> 00:30:27,480 Speaker 1: United States will will still remain strong. What would one 492 00:30:27,480 --> 00:30:30,240 Speaker 1: of the founding fathers of the e U, Jean that 493 00:30:30,600 --> 00:30:34,280 Speaker 1: Thomson nicely frame and make of all of this. You know, 494 00:30:34,360 --> 00:30:37,920 Speaker 1: Jean Money loved the United States. UM. He was he 495 00:30:38,080 --> 00:30:41,440 Speaker 1: used to be made. He spoke really American, Canadian English. 496 00:30:41,520 --> 00:30:45,840 Speaker 1: He used to sell a cognac all over Canada, became 497 00:30:45,840 --> 00:30:49,160 Speaker 1: great friends with Americans like former Under Secretary of State 498 00:30:49,200 --> 00:30:53,120 Speaker 1: George Ball and Dian Atchison and others. And Monai would 499 00:30:53,120 --> 00:30:56,880 Speaker 1: have been, I think, very worried about the riff in NATO, 500 00:30:57,080 --> 00:31:01,400 Speaker 1: in US European identity. He would have been very concerned 501 00:31:01,600 --> 00:31:06,600 Speaker 1: that this march to global economic markets, the sense of 502 00:31:07,400 --> 00:31:11,480 Speaker 1: you know, this this this kind of rear garden and nationalism, 503 00:31:11,520 --> 00:31:14,760 Speaker 1: that's the nativism that's that's rearing up, not just in 504 00:31:14,800 --> 00:31:17,800 Speaker 1: the United States but in many European countries. There was 505 00:31:17,920 --> 00:31:23,320 Speaker 1: concerned money a great deal. He thought through economic integration, um, 506 00:31:23,480 --> 00:31:26,960 Speaker 1: you would be able to contain in war, but you 507 00:31:27,000 --> 00:31:30,840 Speaker 1: would have a world more peaceful people had you know, 508 00:31:31,160 --> 00:31:35,480 Speaker 1: shared economic interest in values. So I think what Mona 509 00:31:35,640 --> 00:31:40,280 Speaker 1: would be most concerned about this difficult times in the 510 00:31:40,560 --> 00:31:45,240 Speaker 1: Atlantic Alliance and the fact that the European Union, which 511 00:31:45,240 --> 00:31:47,760 Speaker 1: it was his he kind of was the godfather of, 512 00:31:48,720 --> 00:31:51,880 Speaker 1: is going through a very difficult period right now. Yeah. 513 00:31:51,880 --> 00:31:53,880 Speaker 1: I think he also came up with the Money Plan, 514 00:31:54,080 --> 00:31:56,720 Speaker 1: which was you know, taking control of some of the 515 00:31:56,760 --> 00:31:59,480 Speaker 1: cold producing areas in Germany and trying to put them 516 00:31:59,520 --> 00:32:02,520 Speaker 1: in front I mean, this was a France that needed reconstruction, 517 00:32:02,720 --> 00:32:06,320 Speaker 1: completely dependent on Cole. How do you think historians, Professor, 518 00:32:06,480 --> 00:32:09,400 Speaker 1: will look on to the last to two to three years, 519 00:32:09,480 --> 00:32:12,200 Speaker 1: the EU, but also the US. What will be the 520 00:32:12,240 --> 00:32:15,960 Speaker 1: main theme running through it? Um? In the United States, 521 00:32:16,160 --> 00:32:20,040 Speaker 1: It's how after nine eleven we became a kingdom of 522 00:32:20,200 --> 00:32:22,960 Speaker 1: fear in the United States. Uh. It wasn't just the 523 00:32:23,080 --> 00:32:27,000 Speaker 1: creation of our Homeland Security Department, which was a good thing, 524 00:32:27,280 --> 00:32:30,760 Speaker 1: or the protecting of our airports. Um. They cracked down 525 00:32:30,760 --> 00:32:34,880 Speaker 1: on terrorism, but the public at large got fearful of otherness, 526 00:32:35,520 --> 00:32:41,400 Speaker 1: arise in xenophobia, prejudice, bigotry. We've had these waves in 527 00:32:41,480 --> 00:32:45,120 Speaker 1: American history. We've had you know, the Aliens Edition Act 528 00:32:45,240 --> 00:32:49,160 Speaker 1: early in American history or McCarthy ism um. But the 529 00:32:49,200 --> 00:32:53,080 Speaker 1: fact that we were hitting that kind of crescendo yet again, 530 00:32:53,440 --> 00:32:56,240 Speaker 1: this late in the twenty one century, is the main narrative. 531 00:32:56,680 --> 00:33:00,600 Speaker 1: Drs Frankley, one final question. You have a terse sentence 532 00:33:01,440 --> 00:33:04,240 Speaker 1: from a gentleman by the name of Franklin Delano Roosevelt 533 00:33:04,760 --> 00:33:07,920 Speaker 1: in your book Rise to Globalism with a Great Stephen Ambrose. 534 00:33:08,600 --> 00:33:15,200 Speaker 1: I hate war? Does our president president hate more? It's 535 00:33:15,200 --> 00:33:17,880 Speaker 1: a good question I think he does. I mean, we 536 00:33:17,960 --> 00:33:21,960 Speaker 1: can't say so far that President Trump has has made 537 00:33:22,000 --> 00:33:26,760 Speaker 1: any false moves towards war. But what he's doing is 538 00:33:26,880 --> 00:33:31,480 Speaker 1: that I'm worried, is by pulling out of trade agreements 539 00:33:31,520 --> 00:33:34,640 Speaker 1: and by turning Americans on each others, is making the 540 00:33:34,720 --> 00:33:38,480 Speaker 1: United States no longer a kind of a beacon for 541 00:33:38,680 --> 00:33:42,680 Speaker 1: moral authority, but a kind of shrinking of our role 542 00:33:42,720 --> 00:33:46,120 Speaker 1: in the world. Douglas Brinkley, thank you so much. And again, folks, 543 00:33:46,200 --> 00:33:48,920 Speaker 1: I can't say enough. If you have any interest in 544 00:33:48,960 --> 00:33:53,120 Speaker 1: the modern media, Douglas Brinkley's one volume on Walter Frinkite 545 00:33:53,520 --> 00:34:10,960 Speaker 1: is absolutely fantastic. Douglas Brinkley with Rice University, this is 546 00:34:11,000 --> 00:34:13,960 Speaker 1: a joy. We have been doing everything we can to 547 00:34:14,000 --> 00:34:17,640 Speaker 1: bring you the tapestry of America, the pressures faced by 548 00:34:17,680 --> 00:34:23,360 Speaker 1: all of our politicians, and these extraordinarily interesting and historic times. 549 00:34:23,360 --> 00:34:25,480 Speaker 1: What an honor to have Douglas Brinkley on with us. 550 00:34:25,960 --> 00:34:31,080 Speaker 1: Here's from the eighth Congressional District of Washington State. And 551 00:34:31,120 --> 00:34:34,680 Speaker 1: it is the oddest district. It is not the fields 552 00:34:34,719 --> 00:34:39,279 Speaker 1: to the eastern Spokane, it is not Starbucks in Seattle. 553 00:34:39,760 --> 00:34:42,120 Speaker 1: We're gonna have Dave Reichart explained to us, what a 554 00:34:42,200 --> 00:34:45,480 Speaker 1: Republican from the eighth Congressional district, what the terrain is, 555 00:34:45,640 --> 00:34:50,640 Speaker 1: How many grizzly bears are in your district? You know, 556 00:34:50,680 --> 00:34:54,160 Speaker 1: I've lost count I haven't seen what. I haven't seen 557 00:34:54,200 --> 00:34:58,640 Speaker 1: one personally yet. So you are I'll get back to 558 00:34:58,680 --> 00:35:01,880 Speaker 1: you on that one. You are active in trade, congressman. 559 00:35:01,880 --> 00:35:04,200 Speaker 1: Wonderful to have you with us today. Are you the 560 00:35:04,239 --> 00:35:11,640 Speaker 1: congressman from Boeing. Well, I have the largest employee base 561 00:35:12,000 --> 00:35:15,360 Speaker 1: in UH in the eight districts, So some of the 562 00:35:15,560 --> 00:35:20,279 Speaker 1: smaller facilities are in the district, but the largest employee base. Yeah, 563 00:35:20,320 --> 00:35:23,440 Speaker 1: this is a very important. Let us get to the 564 00:35:23,480 --> 00:35:26,240 Speaker 1: moment in Washington in a bit. Let's actually talk about 565 00:35:26,239 --> 00:35:30,320 Speaker 1: trade right now. What is Dave Reichart's most constructive trade 566 00:35:30,400 --> 00:35:35,719 Speaker 1: policy for America in the next five to ten years. Well, 567 00:35:35,719 --> 00:35:38,840 Speaker 1: I think when you look at again, I'm glad to 568 00:35:38,960 --> 00:35:42,800 Speaker 1: use the word constructive. That really UH it's it's about 569 00:35:42,880 --> 00:35:46,440 Speaker 1: setting a high standard. It's about the United States being 570 00:35:46,840 --> 00:35:50,360 Speaker 1: a leader in trade and US setting the standard across 571 00:35:50,400 --> 00:35:52,719 Speaker 1: the country. And that's you know, that's a standard now 572 00:35:52,719 --> 00:35:59,080 Speaker 1: in this new UH and age of high tech UM smartphones, 573 00:36:00,080 --> 00:36:06,880 Speaker 1: UM and UH intellectual property protection uh, you know, labor 574 00:36:08,160 --> 00:36:12,560 Speaker 1: protections and environmental protections. Those are high standards that need 575 00:36:12,640 --> 00:36:15,760 Speaker 1: to be sent set across the globe. And I believe 576 00:36:15,800 --> 00:36:18,360 Speaker 1: that the United States is really the only country that 577 00:36:18,480 --> 00:36:24,279 Speaker 1: has the leadership capability of of leading other countries UH 578 00:36:24,640 --> 00:36:27,839 Speaker 1: into setting those high standards so that everyone then is 579 00:36:28,040 --> 00:36:33,000 Speaker 1: becomes productive UH in their own countries in creating jobs 580 00:36:33,080 --> 00:36:36,800 Speaker 1: and a better lifestyle for the for the citizens that 581 00:36:36,880 --> 00:36:42,520 Speaker 1: live in their countries. But has a U said, for example, well, 582 00:36:42,520 --> 00:36:45,239 Speaker 1: I think yes, you know when you look at when 583 00:36:45,280 --> 00:36:49,480 Speaker 1: you look at the recent agreements, so those being Korea, Columbia, 584 00:36:50,080 --> 00:36:55,560 Speaker 1: in Panama backstarted you know when when Bush administration was 585 00:36:56,360 --> 00:37:01,320 Speaker 1: in UM in in power uh uh and then finally 586 00:37:02,040 --> 00:37:05,160 Speaker 1: UM came to fruition under Obama. I think those are 587 00:37:05,239 --> 00:37:09,160 Speaker 1: high standard agreements that addressed the intelectoral property issues and 588 00:37:09,239 --> 00:37:12,480 Speaker 1: financial services and others. But I think we have an 589 00:37:12,480 --> 00:37:17,120 Speaker 1: opportunity here now too, you know, since TPP is set aside, 590 00:37:17,480 --> 00:37:21,080 Speaker 1: and looking at other agreements like NAFTA UH and relooking 591 00:37:21,120 --> 00:37:25,040 Speaker 1: at Korea gives us opportunities to even set the bar higher. 592 00:37:25,120 --> 00:37:27,080 Speaker 1: If you're just joining us fokes Dave record, where us 593 00:37:27,080 --> 00:37:30,800 Speaker 1: from the eighth Congressional District, Washington State. For those you globally, 594 00:37:30,880 --> 00:37:33,520 Speaker 1: this is the state of Washington out off the rim 595 00:37:33,520 --> 00:37:37,040 Speaker 1: of the Pacific Ocean. Dave Ycart, you are more qualified 596 00:37:37,080 --> 00:37:39,640 Speaker 1: than anyone in Congress to speak on law and order. 597 00:37:39,680 --> 00:37:43,160 Speaker 1: You've lived at your sheriff of King County, Washington, you 598 00:37:43,160 --> 00:37:47,239 Speaker 1: were president of the Washington State Sheriff's Association. When you 599 00:37:47,320 --> 00:37:50,840 Speaker 1: look at how the President treats law in order, with 600 00:37:51,000 --> 00:37:54,359 Speaker 1: the uproar that we've all seen the last five six days, 601 00:37:54,360 --> 00:37:57,560 Speaker 1: what is your counsel to what members in uniform in 602 00:37:57,600 --> 00:38:00,640 Speaker 1: this country what they need to do given the turmoil 603 00:38:00,880 --> 00:38:06,920 Speaker 1: that we've seen since Charlottesville. Well, you know, I feel 604 00:38:06,920 --> 00:38:09,800 Speaker 1: like I'm qualified to answer that question, but I I 605 00:38:09,840 --> 00:38:11,760 Speaker 1: don't know if I would put myself in the category 606 00:38:11,880 --> 00:38:15,040 Speaker 1: being the most qualified. But after thirty three years of 607 00:38:15,080 --> 00:38:21,600 Speaker 1: law enforcement, in growing up essentially in that profession, today 608 00:38:21,680 --> 00:38:27,080 Speaker 1: is especially challenging. I am, first of all, please that 609 00:38:27,120 --> 00:38:31,960 Speaker 1: the President recognizes the the service and the sacrifice that 610 00:38:32,080 --> 00:38:35,480 Speaker 1: law enforcement members and their families make. But I'm also 611 00:38:35,680 --> 00:38:38,600 Speaker 1: concerned at some of the remarks that he makes that 612 00:38:38,719 --> 00:38:43,200 Speaker 1: really ignites some of the situations around the country. He 613 00:38:43,280 --> 00:38:47,440 Speaker 1: puts police officers in those situations that really may not 614 00:38:47,520 --> 00:38:49,920 Speaker 1: have occurred if it weren't for some of the words 615 00:38:49,960 --> 00:38:52,840 Speaker 1: that were used by the president. I think that his 616 00:38:52,960 --> 00:38:56,279 Speaker 1: job really is to, um, you know, to step in 617 00:38:56,360 --> 00:39:00,600 Speaker 1: and be the calming voice for officers. You know, my advice, 618 00:39:01,080 --> 00:39:04,680 Speaker 1: um really is to continue to do what they do 619 00:39:04,840 --> 00:39:09,480 Speaker 1: in a professional way, uh, diffusing situations, treating people with 620 00:39:09,640 --> 00:39:12,920 Speaker 1: respect and dignity. And that's and you know that's been 621 00:39:12,960 --> 00:39:17,640 Speaker 1: my experience throughout my law enforcement career of law enforcement 622 00:39:17,640 --> 00:39:20,279 Speaker 1: officers there are there with the heart of the serving Dave. 623 00:39:21,040 --> 00:39:25,160 Speaker 1: How close is this president to losing core Republicans that 624 00:39:25,280 --> 00:39:28,600 Speaker 1: took a chance on Donald Trump? Is that within hours? 625 00:39:28,800 --> 00:39:31,960 Speaker 1: Is it within days? Or is it just waiting the 626 00:39:32,000 --> 00:39:38,520 Speaker 1: next absurdity? How close is it losing lyne Republicans? Well, 627 00:39:39,000 --> 00:39:42,399 Speaker 1: you know that's a question that we can speculate on, 628 00:39:42,560 --> 00:39:46,440 Speaker 1: but I know I wouldn't be able to give you 629 00:39:46,440 --> 00:39:49,920 Speaker 1: any kind of an accurate answer on on that. I 630 00:39:49,960 --> 00:39:54,080 Speaker 1: would say that you know, there there a support for 631 00:39:54,920 --> 00:39:57,320 Speaker 1: when you look at trade for example, there's certainly is 632 00:39:57,440 --> 00:40:01,239 Speaker 1: support for the trade agenda is and move forward. And 633 00:40:01,320 --> 00:40:03,319 Speaker 1: when you look at the trade again agenda, let's just 634 00:40:03,560 --> 00:40:07,160 Speaker 1: use that as an example. I think it's imperatively, it's 635 00:40:07,200 --> 00:40:11,880 Speaker 1: so critical and imperative for the president administration to work 636 00:40:12,000 --> 00:40:15,520 Speaker 1: with Congress and not go off on its own tangent 637 00:40:15,600 --> 00:40:19,919 Speaker 1: here and and stick to the conservative principles which most 638 00:40:19,960 --> 00:40:23,279 Speaker 1: Republicans stand for. Um and I'm in one of those 639 00:40:23,360 --> 00:40:26,359 Speaker 1: moderate Republicans. Let's work with each other. Let's get things 640 00:40:26,480 --> 00:40:29,800 Speaker 1: done together. Let's find a way forward to solving problems 641 00:40:29,840 --> 00:40:34,279 Speaker 1: like immigration, like trade, like tax reform, like healthcare. Those 642 00:40:34,320 --> 00:40:36,520 Speaker 1: are things that we can accomplish, but we can't do 643 00:40:36,560 --> 00:40:39,560 Speaker 1: it running off in a separate direction. We need to 644 00:40:39,600 --> 00:40:41,759 Speaker 1: work together. And I'm I'm hoping that when we look 645 00:40:41,760 --> 00:40:46,040 Speaker 1: at the trade then that that you know that Ambassador 646 00:40:46,080 --> 00:40:49,760 Speaker 1: Leightheiser and I have a great relationship working closely together 647 00:40:49,800 --> 00:40:52,080 Speaker 1: and moving his country forward and trying to find a 648 00:40:52,120 --> 00:40:56,120 Speaker 1: pathway to to new trade agreement, especially as we start 649 00:40:56,120 --> 00:40:59,520 Speaker 1: then negotiation of NAFTA. Dave Record, thank you so much 650 00:40:59,520 --> 00:41:01,720 Speaker 1: to look forward to seeing you in our Washington studios 651 00:41:01,719 --> 00:41:05,719 Speaker 1: and FM studios in Washington. He is a Congressman from 652 00:41:05,760 --> 00:41:09,359 Speaker 1: the eighth Congressional District of Washington State. This to the 653 00:41:09,400 --> 00:41:14,040 Speaker 1: south east, southeast rather and then around up north of Seattle. 654 00:41:26,760 --> 00:41:30,439 Speaker 1: Good morning everyone, Fencie Quad in London. I'm Tom keenan 655 00:41:30,480 --> 00:41:32,280 Speaker 1: New York. In a moment, we are going to talk 656 00:41:32,960 --> 00:41:36,640 Speaker 1: technology and the cloud, and we're gonna do that with 657 00:41:36,680 --> 00:41:39,720 Speaker 1: a guy with truly one of the most interesting CEO 658 00:41:39,880 --> 00:41:43,040 Speaker 1: jobs in America. I'm going to cut to the chase 659 00:41:43,600 --> 00:41:47,080 Speaker 1: and say, too many people make a comparing contrast of 660 00:41:47,160 --> 00:41:51,960 Speaker 1: Cisco with International Business Machines. It's stunning when you look 661 00:41:52,000 --> 00:41:55,879 Speaker 1: at the chart. How that's not valid. What we've got 662 00:41:55,960 --> 00:41:59,560 Speaker 1: is IBM since two thousand thirteen, as many people know 663 00:41:59,680 --> 00:42:03,080 Speaker 1: as underperforming, to say the least, as they switched from 664 00:42:03,080 --> 00:42:07,920 Speaker 1: hardware to software, and the complete opposite. It's true if Cisco, 665 00:42:08,000 --> 00:42:12,440 Speaker 1: Cisco has been just absolutely extraordinary, moving from two thousand 666 00:42:12,560 --> 00:42:17,040 Speaker 1: thirteen up. It's a great, great testament to John Chambers 667 00:42:17,080 --> 00:42:19,759 Speaker 1: with a I'm gonna call it a fractious Chamber's era 668 00:42:20,200 --> 00:42:23,160 Speaker 1: is he handed it over to the mathematician from Chapel Hill. 669 00:42:23,560 --> 00:42:26,200 Speaker 1: His name is Chuck Robins. Chuck, wonderful to have you 670 00:42:26,280 --> 00:42:30,319 Speaker 1: join us today. You're doing what everybody says can't be done, 671 00:42:30,360 --> 00:42:33,600 Speaker 1: moved from hardware to software. It is. It's like a 672 00:42:34,080 --> 00:42:37,800 Speaker 1: it's like a Chapel Hill or Harvard Business School model. 673 00:42:38,320 --> 00:42:41,200 Speaker 1: How much of your age trying to get over to 674 00:42:41,280 --> 00:42:47,439 Speaker 1: the cloud? Well, Tom, thanks for having me. It's uh, look, 675 00:42:47,520 --> 00:42:50,120 Speaker 1: this is a it is a complicated transition, but it's 676 00:42:50,200 --> 00:42:53,239 Speaker 1: one that, uh, the great news is is that it's 677 00:42:53,280 --> 00:42:56,840 Speaker 1: one that we embrace, our employees embrace, our customers actually 678 00:42:56,840 --> 00:42:59,080 Speaker 1: want us to move this way, and frankly, when we 679 00:42:59,120 --> 00:43:01,319 Speaker 1: get through it, I think Wall Street will appreciate it. 680 00:43:01,760 --> 00:43:04,640 Speaker 1: A couple of callouts from this quarter. We we kicked 681 00:43:04,640 --> 00:43:07,720 Speaker 1: off a cycle of of innovation that's going to continue 682 00:43:07,760 --> 00:43:10,640 Speaker 1: for several years. We we actually launched this reinvention of 683 00:43:10,680 --> 00:43:14,920 Speaker 1: networking in June around intent based networking, which was well received. 684 00:43:15,440 --> 00:43:17,640 Speaker 1: And then we also at the same time we're working 685 00:43:17,680 --> 00:43:20,760 Speaker 1: through the software transition, and you know, our deferred revenue 686 00:43:21,120 --> 00:43:25,719 Speaker 1: related to our software portfolio grew and actually exceeded five 687 00:43:25,760 --> 00:43:29,320 Speaker 1: billion this quarters. So it's we're making progress. There's the 688 00:43:29,360 --> 00:43:31,160 Speaker 1: good news, and there's a lot of progress, and that's 689 00:43:31,160 --> 00:43:33,880 Speaker 1: what the CEO has to say. Unfortunately, you're the only 690 00:43:33,960 --> 00:43:36,520 Speaker 1: CEO I'm going to talk to except James Gorman and 691 00:43:36,600 --> 00:43:41,120 Speaker 1: John Crying, who understands partial differentials. You know that the 692 00:43:41,160 --> 00:43:44,359 Speaker 1: time access the X axis is what matters here. Do 693 00:43:44,480 --> 00:43:50,000 Speaker 1: you have to speed up this transformation? Well, I think 694 00:43:50,040 --> 00:43:51,839 Speaker 1: we have been speeding it up. If you go back 695 00:43:51,880 --> 00:43:56,399 Speaker 1: to the size of our deferred software business as a 696 00:43:56,400 --> 00:43:59,600 Speaker 1: as a key metric that talks about this transition. You know, 697 00:43:59,640 --> 00:44:01,520 Speaker 1: two years ago it was growing in the mid twenties. 698 00:44:01,520 --> 00:44:04,719 Speaker 1: Now it's growing, So we're seeing not only the number 699 00:44:04,760 --> 00:44:07,560 Speaker 1: getting much bigger, but it's also accelerating the growth rate. 700 00:44:07,960 --> 00:44:10,919 Speaker 1: And we're just beginning to actually take that software model 701 00:44:11,000 --> 00:44:13,920 Speaker 1: to our core switching platforms, and you're gonna see us 702 00:44:13,920 --> 00:44:16,560 Speaker 1: take it to our routing platforms because the progress we 703 00:44:16,640 --> 00:44:19,760 Speaker 1: made today has been around collaboration, security and other elements 704 00:44:19,760 --> 00:44:22,719 Speaker 1: of our portfolio. So bringing it to the core is 705 00:44:22,760 --> 00:44:24,920 Speaker 1: the big needle mover for us, and that's what we're 706 00:44:24,920 --> 00:44:26,920 Speaker 1: embarking on right now. One more quick question when you 707 00:44:26,920 --> 00:44:30,080 Speaker 1: get to my colleague Francy Laquoi in London, Chuck Robbins, 708 00:44:30,080 --> 00:44:31,719 Speaker 1: when I look at Cisco and I look at the 709 00:44:31,800 --> 00:44:35,320 Speaker 1: dynamic to cell side, is using the word lackluster push 710 00:44:35,320 --> 00:44:38,759 Speaker 1: against that? Why it's a cell side wrong, that it's 711 00:44:38,760 --> 00:44:44,560 Speaker 1: a lackluster Cisco push against that idea? Well, Tom, I 712 00:44:44,600 --> 00:44:47,080 Speaker 1: think that you know, people tend to look at things 713 00:44:47,080 --> 00:44:49,919 Speaker 1: in a very short term view, and what we're doing 714 00:44:50,120 --> 00:44:54,360 Speaker 1: is we're focused on this transformation over a period of time. 715 00:44:54,400 --> 00:44:56,759 Speaker 1: And it's complicated when we have a hardware business and 716 00:44:56,760 --> 00:44:58,719 Speaker 1: a software business. And by the way, we're still gonna 717 00:44:58,760 --> 00:45:01,719 Speaker 1: build the best hardware the planet because the Internet needs it. 718 00:45:02,320 --> 00:45:05,960 Speaker 1: But it's it's a longer term transition and for our 719 00:45:06,000 --> 00:45:08,760 Speaker 1: long term investors, they actually get it. And those people 720 00:45:08,800 --> 00:45:12,319 Speaker 1: who are focused on, you know, the next twenty days, 721 00:45:12,360 --> 00:45:14,280 Speaker 1: it's gonna be a little tougher for them to digest. 722 00:45:14,360 --> 00:45:17,520 Speaker 1: But our customers believe in and our employees believe in it, 723 00:45:17,600 --> 00:45:21,359 Speaker 1: and I think our long term investors do. Yeah, good morning, 724 00:45:21,400 --> 00:45:24,279 Speaker 1: Track from London. What will happen to your margins? So 725 00:45:24,440 --> 00:45:29,200 Speaker 1: margins were rocked? When can you get them back? Hey, Francine, 726 00:45:29,239 --> 00:45:31,440 Speaker 1: thanks for having me as well. Uh, you know, our 727 00:45:31,480 --> 00:45:34,279 Speaker 1: margins have been quite healthy and you know we've talked 728 00:45:34,280 --> 00:45:36,359 Speaker 1: about we just did our financial analysts conference and when 729 00:45:36,360 --> 00:45:40,120 Speaker 1: you look at the transition to software, clearly over time 730 00:45:40,160 --> 00:45:43,920 Speaker 1: we actually think that has the opportunity to enhance our margins. 731 00:45:43,920 --> 00:45:47,000 Speaker 1: So we're optimistic about our ability to continue to have 732 00:45:47,080 --> 00:45:50,279 Speaker 1: healthy margins. H and also too, as we bring more 733 00:45:50,280 --> 00:45:53,640 Speaker 1: and more this software to our core technologies, we think 734 00:45:53,680 --> 00:45:56,080 Speaker 1: that can help as well. How can you compete with Amazon? 735 00:45:56,200 --> 00:45:58,960 Speaker 1: So I'm looking at you know, Amazon dot COM's Amazon 736 00:45:59,000 --> 00:46:03,880 Speaker 1: Web Services. Well, we actually don't compete with Amazon. We 737 00:46:03,920 --> 00:46:08,160 Speaker 1: actually are are looking at a partnership because there's a 738 00:46:08,200 --> 00:46:10,960 Speaker 1: public cloud side, there's a private cloud. And then what 739 00:46:11,000 --> 00:46:14,960 Speaker 1: our customers are increasingly realizing is that their I T 740 00:46:15,600 --> 00:46:18,000 Speaker 1: assets of the future are going to span public cloud, 741 00:46:18,080 --> 00:46:23,880 Speaker 1: private cloud sas platforms and also lots of connections at 742 00:46:23,880 --> 00:46:27,839 Speaker 1: the edge. Think about moving connected vehicles, connected mining operations, 743 00:46:27,880 --> 00:46:31,840 Speaker 1: all and gas, and so actually bridging the applications and 744 00:46:31,880 --> 00:46:35,480 Speaker 1: the technology from the public cloud into their private data 745 00:46:35,520 --> 00:46:37,760 Speaker 1: center applications and all the way out to the edge. 746 00:46:38,520 --> 00:46:42,200 Speaker 1: The underlying common denominator there is the network. So we 747 00:46:42,239 --> 00:46:45,400 Speaker 1: believe that the network is going to be more relevant 748 00:46:45,400 --> 00:46:47,200 Speaker 1: in this new world than it even has been over 749 00:46:47,200 --> 00:46:49,799 Speaker 1: the last ten years. So we think there's a great opportunity, 750 00:46:49,880 --> 00:46:52,600 Speaker 1: as does Amazon and the other cloud players, to actually 751 00:46:52,600 --> 00:46:55,480 Speaker 1: partner on how we enable our customers to uh to 752 00:46:55,600 --> 00:46:58,880 Speaker 1: deal with this new evolving architecture. But it was my 753 00:46:58,960 --> 00:47:02,319 Speaker 1: understanding that neers of you know, facilities for example, like 754 00:47:02,320 --> 00:47:05,800 Speaker 1: the Amazon Web services are also building their own hardware 755 00:47:05,880 --> 00:47:10,239 Speaker 1: and therefore replacing you know, the traditional suppliers of servers. Yeah, 756 00:47:10,239 --> 00:47:13,360 Speaker 1: we actually, uh, we're actually working with all of the 757 00:47:13,400 --> 00:47:16,000 Speaker 1: web scale providers. Some of them have chosen to build 758 00:47:16,040 --> 00:47:19,160 Speaker 1: some of their own technology. Uh. In many cases that 759 00:47:19,239 --> 00:47:22,400 Speaker 1: was because there wasn't anything that had been designed for 760 00:47:22,520 --> 00:47:24,880 Speaker 1: the architecture they were trying to build. It wasn't because 761 00:47:25,239 --> 00:47:27,440 Speaker 1: they were trying to save five percent on the capex. 762 00:47:27,440 --> 00:47:29,960 Speaker 1: It was because the technology and the integration with their 763 00:47:30,040 --> 00:47:33,279 Speaker 1: architecture actually didn't exist. So we've actually been working with 764 00:47:33,320 --> 00:47:35,880 Speaker 1: each of them, and we've been making progress over the 765 00:47:35,960 --> 00:47:39,600 Speaker 1: last you know, two years actually in helping meet their needs. 766 00:47:39,600 --> 00:47:41,920 Speaker 1: And I'm actually very comfortable where we are with them 767 00:47:41,920 --> 00:47:43,640 Speaker 1: as customers right now. And I think you're going to 768 00:47:43,719 --> 00:47:46,680 Speaker 1: see that, uh see our successor continue over the next 769 00:47:46,719 --> 00:47:49,600 Speaker 1: couple of years. Circ one final question, there is always 770 00:47:49,600 --> 00:47:52,640 Speaker 1: this comparing address. I used to bust John Chambers Chops 771 00:47:52,680 --> 00:47:57,239 Speaker 1: about it with IBM in this this business model of 772 00:47:57,360 --> 00:48:02,359 Speaker 1: hardware to software. What the next great challenge for you, 773 00:48:02,440 --> 00:48:05,440 Speaker 1: if it's not the timeline I was talking about earlier, 774 00:48:05,719 --> 00:48:08,080 Speaker 1: what's the to do list for you? For the next 775 00:48:08,520 --> 00:48:14,399 Speaker 1: twelve months to be blunt, to not be IBM. Well, 776 00:48:14,400 --> 00:48:16,320 Speaker 1: I think the big thing is we have to drive 777 00:48:16,840 --> 00:48:21,160 Speaker 1: the successful transition of our business model in our core technologies. 778 00:48:21,239 --> 00:48:22,920 Speaker 1: That's the real thing that we're focused on, and we 779 00:48:23,000 --> 00:48:26,480 Speaker 1: launched that in June. We launched a new platform, and 780 00:48:26,520 --> 00:48:29,160 Speaker 1: we launched an advanced software subscription on top of that 781 00:48:29,200 --> 00:48:33,799 Speaker 1: platform for the first time ever. And we've we've seen that, uh, 782 00:48:34,200 --> 00:48:37,920 Speaker 1: the embracing of that technology architecture by our customers, and 783 00:48:38,000 --> 00:48:40,759 Speaker 1: actually the great majority of them are actually choosing to 784 00:48:40,920 --> 00:48:44,840 Speaker 1: also buy that advanced subscription in addition to that network switch, 785 00:48:44,960 --> 00:48:46,960 Speaker 1: which is something that people are skeptical that we could 786 00:48:46,960 --> 00:48:49,440 Speaker 1: pull off. But if you look at the technology we 787 00:48:49,440 --> 00:48:52,200 Speaker 1: put in that subscription, tom, things like being able to 788 00:48:52,239 --> 00:48:57,040 Speaker 1: identify malware inside encrypted traffic, that's a capability that customers 789 00:48:57,080 --> 00:48:59,200 Speaker 1: are quite willing to buy into the subscription model for, 790 00:48:59,280 --> 00:49:02,279 Speaker 1: and that's what's in that subscription. So I think that's 791 00:49:02,280 --> 00:49:03,960 Speaker 1: the biggest thing we're gonna execute on over the next 792 00:49:04,000 --> 00:49:06,239 Speaker 1: twelve to twenty four months. Chuck Robbins, I want to 793 00:49:06,280 --> 00:49:09,799 Speaker 1: get you on set with us on radio and television worldwide, 794 00:49:09,840 --> 00:49:13,360 Speaker 1: and I want to talk to you about kids and mathematics. 795 00:49:13,800 --> 00:49:16,279 Speaker 1: I don't know when you're gonna be next, but I 796 00:49:16,280 --> 00:49:19,000 Speaker 1: would love I'm not going to talk about chapellel Basketball. 797 00:49:19,360 --> 00:49:22,760 Speaker 1: I want to talk to you is a mathematician about 798 00:49:22,840 --> 00:49:26,120 Speaker 1: what we do about kids in this nation in mathematics. 799 00:49:26,200 --> 00:49:30,200 Speaker 1: Chuck Robbins, CEO of Cisco, look forward to that. Of course, 800 00:49:30,200 --> 00:49:33,359 Speaker 1: Cisco out many on the sales side through Bloomberg Intelligence, 801 00:49:33,719 --> 00:49:37,640 Speaker 1: saying a little bit lack luster, fancy law. Thank you 802 00:49:37,680 --> 00:49:41,160 Speaker 1: in London in New York. I'm Tom Keane. This is Bloomberg. 803 00:49:51,520 --> 00:49:55,680 Speaker 1: Thanks for listening to the Bloomberg Surveillance podcast. Subscribe and 804 00:49:55,719 --> 00:50:01,120 Speaker 1: listen to interviews on Apple Podcasts, SoundCloud, or whichever podcast 805 00:50:01,160 --> 00:50:04,680 Speaker 1: platform you prefer. I'm on Twitter at Tom Keene. David 806 00:50:04,760 --> 00:50:08,880 Speaker 1: Gura is at David Gura. Before the podcast, you can 807 00:50:08,960 --> 00:50:12,040 Speaker 1: always catch us worldwide. I'm Bloomberg Radio