1 00:00:05,800 --> 00:00:08,360 Speaker 1: Welcome to the Bloomberg P and L Podcast. I'm Pim 2 00:00:08,400 --> 00:00:11,200 Speaker 1: Fox along with my co host Lisa A. Brahmowitz. Each 3 00:00:11,240 --> 00:00:14,440 Speaker 1: day we bring you the most important, noteworthy, and useful 4 00:00:14,480 --> 00:00:17,079 Speaker 1: interviews for you and your money, whether you're at the 5 00:00:17,120 --> 00:00:20,360 Speaker 1: grocery store or the trading floor. Find the Bloomberg P 6 00:00:20,520 --> 00:00:33,120 Speaker 1: M L Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. 7 00:00:33,120 --> 00:00:37,800 Speaker 1: Even before the first words of Brett Kavanaugh, the President's 8 00:00:37,880 --> 00:00:42,320 Speaker 1: nominee to the U. S. Supreme Court, Democrats we're pressing 9 00:00:42,360 --> 00:00:46,200 Speaker 1: the Republicans on the Senate Judiciary Committee to adjourn the hearing, 10 00:00:47,080 --> 00:00:52,800 Speaker 1: citing the late release of documents related to Brett Kavanaugh. 11 00:00:53,040 --> 00:00:55,040 Speaker 1: Now Here to tell us more about this is our 12 00:00:55,120 --> 00:00:59,680 Speaker 1: legal analyst and the co host of Bloomberg Politics Policy Power, 13 00:00:59,760 --> 00:01:03,600 Speaker 1: and none other than my colleague June grossoe June, was 14 00:01:03,680 --> 00:01:06,679 Speaker 1: this expected on the part of the Democrats. Yes, they 15 00:01:06,720 --> 00:01:08,840 Speaker 1: were going to try to bring up the fact. It's 16 00:01:08,840 --> 00:01:10,880 Speaker 1: not just that they got by the way. Forty two 17 00:01:10,920 --> 00:01:14,680 Speaker 1: tho documents were released last night by the attorney who's 18 00:01:14,720 --> 00:01:18,880 Speaker 1: reviewing the documents of when Kavanaugh was in the Bush 19 00:01:18,880 --> 00:01:22,839 Speaker 1: White House as its secretary to President George W. Bush. 20 00:01:23,120 --> 00:01:25,639 Speaker 1: So they didn't They knew that they hadn't gotten hundreds 21 00:01:25,680 --> 00:01:28,479 Speaker 1: of thousands of documents that they've requested from those years, 22 00:01:28,520 --> 00:01:32,760 Speaker 1: and that could contain um different kinds of issues related to, 23 00:01:32,840 --> 00:01:36,039 Speaker 1: for example, the torture problems that they were that they 24 00:01:36,600 --> 00:01:39,640 Speaker 1: encountered in the Bush White House. So there's a lot 25 00:01:40,319 --> 00:01:44,000 Speaker 1: or comments that Brett Kavanaugh had written while he was 26 00:01:44,280 --> 00:01:46,600 Speaker 1: a counselor in the White House. We don't know exactly 27 00:01:46,600 --> 00:01:48,600 Speaker 1: what it be, but would be all the emails and 28 00:01:48,640 --> 00:01:51,720 Speaker 1: all those those things that go back and forth between 29 00:01:51,800 --> 00:01:55,160 Speaker 1: him and his position of power as far as that's concerned, 30 00:01:55,400 --> 00:01:58,000 Speaker 1: and other people as to the positions the George W. 31 00:01:58,080 --> 00:02:01,200 Speaker 1: Bush White House took. So it wasn't so much opinions 32 00:02:01,280 --> 00:02:04,240 Speaker 1: as in legal opinions, but other kinds of things. What 33 00:02:04,400 --> 00:02:06,200 Speaker 1: what side was he on it? And some of those 34 00:02:06,200 --> 00:02:10,040 Speaker 1: issues he bypassed. He got around during his confirmation hearings 35 00:02:10,040 --> 00:02:11,720 Speaker 1: for the d. C. Circuit Court of Appeals. So they 36 00:02:11,760 --> 00:02:14,680 Speaker 1: wanted all those documents, and as you know, this has 37 00:02:14,720 --> 00:02:17,680 Speaker 1: been a rush to push this through. The Republicans said 38 00:02:17,720 --> 00:02:19,920 Speaker 1: they wanted to do it right after Labor Day. They 39 00:02:19,919 --> 00:02:22,320 Speaker 1: want him on the court in time for the session 40 00:02:22,360 --> 00:02:24,840 Speaker 1: in October, so it has been a big rush, and 41 00:02:25,160 --> 00:02:26,840 Speaker 1: so they complained about it, and they tried to get 42 00:02:26,880 --> 00:02:28,840 Speaker 1: the hearings put off, but it was we know it's 43 00:02:28,880 --> 00:02:31,320 Speaker 1: to no avail. Chuck Grassley basically said, I'm gonna listen 44 00:02:31,360 --> 00:02:33,840 Speaker 1: to you, and then he ruled he's the chairman of 45 00:02:33,880 --> 00:02:37,000 Speaker 1: the of the Judiciary Committee. But in addition to the 46 00:02:37,080 --> 00:02:43,600 Speaker 1: release of the documents, they're also classified as committee confidential exactly. 47 00:02:43,720 --> 00:02:46,760 Speaker 1: So so that's a good question, and I don't know 48 00:02:46,800 --> 00:02:48,920 Speaker 1: the real answer to that, because if they want, you 49 00:02:49,120 --> 00:02:51,320 Speaker 1: think that you want they want to ask questions about it, 50 00:02:51,480 --> 00:02:55,080 Speaker 1: they're going to have to somehow make reference to it 51 00:02:55,120 --> 00:02:56,960 Speaker 1: without revealing what was in it. It sounds like an 52 00:02:56,960 --> 00:03:00,720 Speaker 1: impossible situation if they're classified as committee confident reality, because 53 00:03:00,760 --> 00:03:02,760 Speaker 1: that means that the committee only, it's with the committee 54 00:03:02,760 --> 00:03:06,120 Speaker 1: eyes only, so the public doesn't have access to that. 55 00:03:06,280 --> 00:03:09,440 Speaker 1: So query whether they can really ask him any questions 56 00:03:09,480 --> 00:03:12,440 Speaker 1: on that. So there doesn't seem to be at least 57 00:03:12,480 --> 00:03:16,519 Speaker 1: anything procedurally that the Democrats on the Committee can do. No, 58 00:03:16,720 --> 00:03:19,440 Speaker 1: there's nothing they can do really, because it's it's a 59 00:03:19,560 --> 00:03:23,480 Speaker 1: question of the Republicans are in control of the committee, 60 00:03:23,800 --> 00:03:27,000 Speaker 1: and Chuck grass Lee is in control of the committee, 61 00:03:27,040 --> 00:03:29,480 Speaker 1: and what he says and the way they vote will 62 00:03:29,480 --> 00:03:33,320 Speaker 1: always be Republican heavy, unless some Republican decides all of 63 00:03:33,360 --> 00:03:36,200 Speaker 1: a sudden to vote with the Democrats, which is unlikely. 64 00:03:36,600 --> 00:03:39,680 Speaker 1: And we should also mention that the fifty one forty 65 00:03:39,840 --> 00:03:44,560 Speaker 1: nine GOP control of the Senate looks to be confirmed 66 00:03:44,640 --> 00:03:50,360 Speaker 1: because Arizona's governor will appoint a Senator to replace the 67 00:03:50,440 --> 00:03:53,560 Speaker 1: late John McCain right. And it doesn't look like either 68 00:03:53,760 --> 00:03:58,360 Speaker 1: of the female Republican senators that Democrats have targeted as 69 00:03:58,440 --> 00:04:01,760 Speaker 1: perhaps saying, for example, Susan Collins of Maine, that they 70 00:04:01,760 --> 00:04:05,040 Speaker 1: would vote with the Democrats because they are pro choice. 71 00:04:05,960 --> 00:04:08,280 Speaker 1: It doesn't seem like that's going to happen. Susan Collins 72 00:04:08,280 --> 00:04:10,720 Speaker 1: of Maine at least said that she asked Brett Kavanaugh 73 00:04:10,800 --> 00:04:13,640 Speaker 1: about row View weight and he said it was settled law. 74 00:04:13,960 --> 00:04:18,120 Speaker 1: Now that's a phrase that lawyers and especially people trying 75 00:04:18,120 --> 00:04:20,920 Speaker 1: to become judges like to use to say, but it 76 00:04:20,960 --> 00:04:23,680 Speaker 1: means really not much. It means that as of now 77 00:04:23,880 --> 00:04:26,880 Speaker 1: it's settled, and that's a precedent. But they can also 78 00:04:26,960 --> 00:04:29,760 Speaker 1: overturn any precedent. In this last Supreme Court term, we 79 00:04:30,160 --> 00:04:33,560 Speaker 1: saw Judge Gorzich, who had talked about settled law and 80 00:04:33,800 --> 00:04:37,920 Speaker 1: respecting precedent, be in the majority to overturn a forty 81 00:04:38,000 --> 00:04:41,839 Speaker 1: year old precedent about union fees. So that really means nothing. 82 00:04:42,160 --> 00:04:43,960 Speaker 1: So it's just a way to kind of get rid 83 00:04:44,000 --> 00:04:46,640 Speaker 1: of the question. It's it's a he will have many, 84 00:04:46,680 --> 00:04:49,000 Speaker 1: many ways to get rid of the question. He's been 85 00:04:49,040 --> 00:04:52,880 Speaker 1: in intensive they call them really murder boards, and it's 86 00:04:52,920 --> 00:04:55,280 Speaker 1: sort of like every you're sitting there and they just 87 00:04:55,320 --> 00:04:58,360 Speaker 1: throw every question that you can possibly imagine. And CNN 88 00:04:58,440 --> 00:05:03,240 Speaker 1: is reported that they all had protesters and shouted things 89 00:05:03,279 --> 00:05:05,200 Speaker 1: at him and did different things to make him at 90 00:05:05,279 --> 00:05:08,080 Speaker 1: ease for when he's in front of this committee, and 91 00:05:08,200 --> 00:05:10,200 Speaker 1: there were even protesters this morning that had to be 92 00:05:10,560 --> 00:05:12,880 Speaker 1: carried out. So he is prepared and he's going to 93 00:05:13,000 --> 00:05:17,000 Speaker 1: have answers. For example, I can't talk about a case 94 00:05:17,080 --> 00:05:20,240 Speaker 1: that's going to come before me. Well, I respect settled precedent, 95 00:05:20,279 --> 00:05:21,720 Speaker 1: but how can I you know, I can't talk about 96 00:05:21,720 --> 00:05:24,240 Speaker 1: something that's going to happen in the future. And you'll 97 00:05:24,279 --> 00:05:27,360 Speaker 1: hear those the same things you heard from Judge Chief 98 00:05:27,480 --> 00:05:30,480 Speaker 1: Judge now Chief Justice John Roberts. He's going to have 99 00:05:30,520 --> 00:05:34,240 Speaker 1: some baseball analogies, talking about calling only calling balls and 100 00:05:34,279 --> 00:05:36,800 Speaker 1: strikes and being like an umpire. Those are in some 101 00:05:36,880 --> 00:05:40,679 Speaker 1: of the prepared remarks that we had to look at. Now. 102 00:05:41,200 --> 00:05:46,919 Speaker 1: The Trump administration has also cited executive privilege in order 103 00:05:47,080 --> 00:05:51,720 Speaker 1: to prevent about a hundred thousand pages of records from 104 00:05:51,760 --> 00:05:55,400 Speaker 1: his time as the White House Counsel in the George W. 105 00:05:55,560 --> 00:06:00,680 Speaker 1: Bush administration. Yes, and that's unusual because I don't know 106 00:06:00,760 --> 00:06:04,960 Speaker 1: of another time where executive privilege was injected as part 107 00:06:05,040 --> 00:06:08,720 Speaker 1: of Supreme Court hearings. I mean, usually all those documents 108 00:06:08,720 --> 00:06:12,400 Speaker 1: by that time are revealed, and I don't remember another 109 00:06:12,800 --> 00:06:16,800 Speaker 1: hearing where there was this late, late, you know, display 110 00:06:17,000 --> 00:06:22,200 Speaker 1: of documents, documents overnight. Now not even their staff can 111 00:06:22,240 --> 00:06:26,479 Speaker 1: get through documents overnight. And as we've mentioned, they're they're 112 00:06:26,600 --> 00:06:29,800 Speaker 1: still marked by executive privilege, so they're supposed to be 113 00:06:29,839 --> 00:06:33,320 Speaker 1: just for the committee only. But um that that is 114 00:06:33,320 --> 00:06:38,840 Speaker 1: a very unusual kind of declaration, you might say, And 115 00:06:38,960 --> 00:06:41,920 Speaker 1: it's going to keep all those documents, which are the 116 00:06:42,000 --> 00:06:44,080 Speaker 1: kind of documents that Democrats would like to get their 117 00:06:44,120 --> 00:06:47,760 Speaker 1: hands on. Um. Senaer to Einstein said today some she 118 00:06:47,839 --> 00:06:49,880 Speaker 1: said something, well, we would like to prove, you know, 119 00:06:50,040 --> 00:06:52,039 Speaker 1: have the documents we'd like to prove. We know that 120 00:06:52,040 --> 00:06:53,799 Speaker 1: you're at this position, but we don't have any proof 121 00:06:53,800 --> 00:06:56,920 Speaker 1: of it yet. Thank you very much. June Grasso are 122 00:06:57,040 --> 00:07:00,960 Speaker 1: legal analyst, co host of Politics Policy Our and lot 123 00:07:16,800 --> 00:07:20,480 Speaker 1: the shares of Nike. They are down nearly three percent today. 124 00:07:20,560 --> 00:07:23,480 Speaker 1: Here to tell us more about the company and it's 125 00:07:23,560 --> 00:07:28,559 Speaker 1: new ad campaign that will feature a Colin Kaepernick, Let's 126 00:07:28,720 --> 00:07:31,480 Speaker 1: turn to Bert Flickinger. He is the managing director for 127 00:07:31,480 --> 00:07:34,440 Speaker 1: a strategic resource group. You can follow Birt on Twitter 128 00:07:34,960 --> 00:07:39,080 Speaker 1: at Bert Underscore Flickinger. Bert Flickinger, why do you think 129 00:07:39,160 --> 00:07:43,200 Speaker 1: Nike has turned to Colin Kaepernick for a new ad campaign? 130 00:07:43,920 --> 00:07:46,680 Speaker 1: Him Nike's law, some of it's cool and cache and 131 00:07:46,720 --> 00:07:52,080 Speaker 1: it's trying to recover it on the thirtie anniversary to 132 00:07:52,280 --> 00:07:57,960 Speaker 1: just Do It campaign that started Ignaminous Lee after Gary Gilmore, 133 00:07:58,440 --> 00:08:02,120 Speaker 1: the murderer of you Utag gas station attendant and um 134 00:08:02,360 --> 00:08:07,000 Speaker 1: Utah motel clerk told the prison firing squad just to 135 00:08:07,080 --> 00:08:09,440 Speaker 1: pull the trigger and just do it and kill him. 136 00:08:09,480 --> 00:08:13,160 Speaker 1: And and then that became the genesis of the Nike 137 00:08:13,720 --> 00:08:17,160 Speaker 1: just do It do It ads in in which which 138 00:08:17,200 --> 00:08:20,840 Speaker 1: continued and this will certainly sell more sneakers, but as 139 00:08:20,880 --> 00:08:24,680 Speaker 1: you reference on the Bloomberg terminal, Nikes down almost three 140 00:08:24,720 --> 00:08:29,080 Speaker 1: percent double what ADDI does is down. And while Nike 141 00:08:29,240 --> 00:08:36,239 Speaker 1: has the big box to pay the most famous athletes, UH, teams, universities, 142 00:08:36,320 --> 00:08:39,600 Speaker 1: et cetera. UH, students who we're seeing from around the 143 00:08:39,640 --> 00:08:44,080 Speaker 1: world are wearing New Balance, wearing Puma, wearing the Adida 144 00:08:44,280 --> 00:08:47,480 Speaker 1: three stripe. UH, and Nike's going the wrong way and 145 00:08:47,480 --> 00:08:50,960 Speaker 1: and him. A big part of this is Nike was 146 00:08:51,000 --> 00:08:55,600 Speaker 1: a really socially responsible company in the in the eighties 147 00:08:55,600 --> 00:08:58,959 Speaker 1: and nineties. UH with with it just let Me Play 148 00:08:59,000 --> 00:09:02,080 Speaker 1: campaign that lives Stolan and Joe McCarthy and Dan Widen 149 00:09:02,160 --> 00:09:06,840 Speaker 1: of Wide and Kennedy did UH to help help oppressed 150 00:09:07,200 --> 00:09:12,280 Speaker 1: women and girls and get resources through sports, et cetera. 151 00:09:12,920 --> 00:09:17,719 Speaker 1: And UH. Now NI Nike seems to be following controversy, 152 00:09:17,720 --> 00:09:22,000 Speaker 1: which is okay to certainly take a stand commercially, but 153 00:09:22,000 --> 00:09:25,439 Speaker 1: but Nike needs to go back to its roots and 154 00:09:26,320 --> 00:09:29,760 Speaker 1: really get behind women and girls, which which is over 155 00:09:29,840 --> 00:09:33,640 Speaker 1: half the market that UH Nikes ignored to its peril 156 00:09:34,120 --> 00:09:38,360 Speaker 1: UH and also pressure on its stock prices. You referenced, well, 157 00:09:38,400 --> 00:09:41,240 Speaker 1: what do you mean by Nike strategy? Do they have 158 00:09:41,320 --> 00:09:45,079 Speaker 1: a strategy to combat Audidas or Adidas however you want 159 00:09:45,120 --> 00:09:49,200 Speaker 1: to describe it, or Puma that may be held in 160 00:09:49,320 --> 00:09:51,760 Speaker 1: higher esteem when it comes to things like social media 161 00:09:52,280 --> 00:09:58,160 Speaker 1: and controversy. This the strategy PIM in my view, financially 162 00:09:58,200 --> 00:10:03,000 Speaker 1: is has been stripped my in America of UH being 163 00:10:03,040 --> 00:10:08,160 Speaker 1: the one major shoe manufacturer that that does virtually that 164 00:10:08,280 --> 00:10:12,000 Speaker 1: does all its manufacturing offshore and a lot of controversy 165 00:10:12,040 --> 00:10:17,559 Speaker 1: in terms of factory casualties UH and and other really 166 00:10:17,600 --> 00:10:22,880 Speaker 1: bad problems. And UH Nike originally with with the just 167 00:10:23,080 --> 00:10:28,480 Speaker 1: do it UH with a Michael Jordan's campaign. Ultimately UH 168 00:10:28,559 --> 00:10:33,200 Speaker 1: later Derek Jeter UH really world renowned and respected athletes 169 00:10:33,240 --> 00:10:36,880 Speaker 1: eclipsed what Converse had been doing, UH in the great 170 00:10:37,000 --> 00:10:41,280 Speaker 1: Magic Johnson and Larry Bird commercials produced by Spike Lee 171 00:10:41,920 --> 00:10:45,280 Speaker 1: and now UH, it's it's more to your point, social 172 00:10:45,320 --> 00:10:49,040 Speaker 1: and digital and connective media for Nike to get attention 173 00:10:49,280 --> 00:10:53,760 Speaker 1: getting attention cells shoes, but isn't necessarily covering all of 174 00:10:54,200 --> 00:10:59,280 Speaker 1: the key cornerstones of social responsibility, especially with women and girls. 175 00:10:59,040 --> 00:11:04,800 Speaker 1: Is Nike become a large UH corporate corporation similar to 176 00:11:04,880 --> 00:11:08,920 Speaker 1: what Warren Beatty did, is Mrs Leo Farnsworth and heaven 177 00:11:08,960 --> 00:11:12,280 Speaker 1: can wait. Why can't we do everything right? And Nike 178 00:11:12,400 --> 00:11:15,000 Speaker 1: doesn't seem to be doing everything right. Nike just seems 179 00:11:15,040 --> 00:11:19,160 Speaker 1: to be just doing it, or maybe don't just doing 180 00:11:19,200 --> 00:11:21,839 Speaker 1: it in terms of all the right things. Well, Bert, 181 00:11:21,920 --> 00:11:24,400 Speaker 1: what would you suggest that they do that they're not doing? 182 00:11:25,600 --> 00:11:29,920 Speaker 1: The big thing is UH for for example, was with 183 00:11:29,960 --> 00:11:37,520 Speaker 1: it Drri's UH who coached more Olympic women's ice hockey 184 00:11:37,559 --> 00:11:41,320 Speaker 1: stars and UH contending for a national championship on thirty 185 00:11:41,400 --> 00:11:45,319 Speaker 1: eight thousand a year. Whether whether it's Cornell or IVY 186 00:11:45,360 --> 00:11:48,599 Speaker 1: League or n c a A or women's NBA or 187 00:11:48,960 --> 00:11:54,280 Speaker 1: or or women's soccer pro leagues. UH, Neither neither the NHL, 188 00:11:54,400 --> 00:11:57,280 Speaker 1: nor the END nor the NBA, UH nor any of 189 00:11:57,320 --> 00:12:01,439 Speaker 1: the other U leagues are sponsoring women's and girls sports. 190 00:12:01,480 --> 00:12:04,480 Speaker 1: None of them were giving them the resources. That's where 191 00:12:04,480 --> 00:12:06,560 Speaker 1: you think Nike ought to be putting its money and 192 00:12:06,640 --> 00:12:10,400 Speaker 1: its strategy behind women's sports. Yeah, and they him they 193 00:12:10,520 --> 00:12:13,280 Speaker 1: get the return because women make over half of the 194 00:12:13,320 --> 00:12:19,280 Speaker 1: purchase decisions. And in terms of participation in sports, whether 195 00:12:19,280 --> 00:12:24,080 Speaker 1: it's field hockey, ice hockey, UH football worldwide are called 196 00:12:24,120 --> 00:12:27,520 Speaker 1: soccer in the US. That's the key to Nike's future. 197 00:12:27,720 --> 00:12:32,320 Speaker 1: Audi DA and others see it on Nike apparently is 198 00:12:32,360 --> 00:12:36,600 Speaker 1: obtusely missing it when Nike really got it years ago 199 00:12:36,679 --> 00:12:39,840 Speaker 1: to be a worldwide leader. Now it's a laggern Well 200 00:12:40,040 --> 00:12:44,080 Speaker 1: in that context, Bert Flickinger, how did Adidas or Audi 201 00:12:44,200 --> 00:12:52,480 Speaker 1: does succeed in fashion with the stand smith sneaker which 202 00:12:52,520 --> 00:12:56,040 Speaker 1: is a retro Look, how did they succeed at this? 203 00:12:56,360 --> 00:13:01,559 Speaker 1: And Nike miss it? This stand Stan Smith and UH 204 00:13:02,000 --> 00:13:07,120 Speaker 1: you us open and uh the retro Addi DA's regard, 205 00:13:07,240 --> 00:13:12,240 Speaker 1: regardless of the sport, is really connecting, particularly with students 206 00:13:12,559 --> 00:13:16,280 Speaker 1: junior high school, high school, UH, community college, college, young 207 00:13:16,320 --> 00:13:20,280 Speaker 1: adults who look at look at the history. It's one 208 00:13:20,280 --> 00:13:23,600 Speaker 1: of the reasons night Nike after in my view, UH 209 00:13:23,720 --> 00:13:29,600 Speaker 1: anti competitive and UH pricing and potentially predatory practices in 210 00:13:29,640 --> 00:13:32,959 Speaker 1: my professional view, knocked Converse out. Converse was a leader 211 00:13:32,960 --> 00:13:36,360 Speaker 1: and doing what you're saying with with retro shoes, and 212 00:13:36,400 --> 00:13:39,960 Speaker 1: Converse was really the innovator. Nike bought them out of bankruptcy, 213 00:13:40,040 --> 00:13:44,240 Speaker 1: but didn't continue the great legacy that was built by 214 00:13:44,240 --> 00:13:48,240 Speaker 1: the Converse company. And so Audi Dai Radidas has seized 215 00:13:48,240 --> 00:13:50,960 Speaker 1: that mental and capitalized on it and and Adi. Is 216 00:13:50,960 --> 00:13:53,000 Speaker 1: it too late, though, Bird, Is it too late for 217 00:13:53,120 --> 00:13:57,000 Speaker 1: Nike to use converse as a wedge to drive those 218 00:13:57,080 --> 00:14:00,400 Speaker 1: kinds of sales? Give you about twenty seconds in news 219 00:14:00,440 --> 00:14:05,080 Speaker 1: conversus a wedge. What we're seeing in Japan, throughout Asia 220 00:14:05,240 --> 00:14:09,199 Speaker 1: and in Europe is converse is still extremely popular, especially 221 00:14:09,200 --> 00:14:13,640 Speaker 1: with young women, and that's the key catalyst for for 222 00:14:13,760 --> 00:14:16,560 Speaker 1: Nike's growth beyond the Nike brand. All right, well we've 223 00:14:16,559 --> 00:14:18,400 Speaker 1: got to leave it there, but thanks very much to 224 00:14:18,480 --> 00:14:38,720 Speaker 1: Bert Flickings. You're talking about Nike the pain when it 225 00:14:38,760 --> 00:14:41,880 Speaker 1: comes to emerging markets. Here to help us understand the 226 00:14:41,880 --> 00:14:45,560 Speaker 1: pain and perhaps mitigate some of our concerns. As Damian 227 00:14:45,640 --> 00:14:50,560 Speaker 1: sass Our, chief Emerging market strategist for Bloomberg Intelligence, Damian, 228 00:14:50,800 --> 00:14:54,840 Speaker 1: you are the most popular person at Bloomberg because you 229 00:14:54,920 --> 00:14:58,280 Speaker 1: are the expert for emerging markets, and boy, they have 230 00:14:58,400 --> 00:15:02,920 Speaker 1: been grabbing the headlines, whether it is Turkey, Argentina and 231 00:15:03,040 --> 00:15:06,160 Speaker 1: South Africa. Maybe we should start with South Africa since 232 00:15:06,600 --> 00:15:09,440 Speaker 1: I think you kind of I have done Argentina to death. 233 00:15:09,480 --> 00:15:11,800 Speaker 1: We'll get to that. I'm sure what is going on 234 00:15:11,840 --> 00:15:14,000 Speaker 1: in South Africa and then we'll even go to Asia. 235 00:15:14,000 --> 00:15:16,920 Speaker 1: But what's happening in South Africa. So South Africa reported 236 00:15:16,960 --> 00:15:19,880 Speaker 1: GDP that came in well below expectations today they were 237 00:15:19,960 --> 00:15:23,280 Speaker 1: down point seven quarter of a quarter. That's the second 238 00:15:23,280 --> 00:15:27,120 Speaker 1: consecutive quarter of declining GDP growth, which effectively puts the 239 00:15:27,160 --> 00:15:30,520 Speaker 1: economy in recession. Um, look, I mean this is this 240 00:15:30,600 --> 00:15:33,880 Speaker 1: is this is long in the coming. I mean, agricultural 241 00:15:33,960 --> 00:15:36,960 Speaker 1: production in South Africa has been teetering on the brink 242 00:15:36,960 --> 00:15:39,720 Speaker 1: of disaster for some time. It's slow considerably. Um. We 243 00:15:39,760 --> 00:15:42,440 Speaker 1: did see a bounce back in the mining in mining 244 00:15:42,440 --> 00:15:44,640 Speaker 1: output this this quarter, which is a good thing, but 245 00:15:45,200 --> 00:15:47,920 Speaker 1: consumption just remains at historical lows and so you know, 246 00:15:48,040 --> 00:15:50,240 Speaker 1: it's just not hitting households where it matters most. And 247 00:15:50,280 --> 00:15:53,120 Speaker 1: so you're seeing, um, you're seeing slowering growth, you're seeing 248 00:15:53,120 --> 00:15:55,600 Speaker 1: inflation chick up, and you're just seeing the fundamentals weekend, 249 00:15:55,880 --> 00:15:59,640 Speaker 1: So is this because of domestic issues or is this 250 00:16:00,000 --> 00:16:03,200 Speaker 1: anything larger that's happening? Where is there just a trigger? 251 00:16:03,320 --> 00:16:06,840 Speaker 1: Right the dollar gets stronger and then that triggers heightened 252 00:16:08,040 --> 00:16:10,880 Speaker 1: focus on the domestic problems. Well, I mean it's had 253 00:16:10,920 --> 00:16:13,360 Speaker 1: porks journals for some time in South Africa at this 254 00:16:13,400 --> 00:16:16,160 Speaker 1: stage is all about confidence in credibility, right, Ramaphois has 255 00:16:16,200 --> 00:16:18,080 Speaker 1: taken over now for Zoom that he's been in power 256 00:16:18,080 --> 00:16:20,440 Speaker 1: for you know, more than a year, but his ability 257 00:16:20,480 --> 00:16:23,600 Speaker 1: to enact these structural reforms that are designed to reduce 258 00:16:23,680 --> 00:16:25,840 Speaker 1: leverage and improve growth just aren't. We're just we're just 259 00:16:25,880 --> 00:16:28,040 Speaker 1: not seeing that. And it's not it's not gaining the 260 00:16:28,120 --> 00:16:30,840 Speaker 1: credence with offshore creditors and so what you're seeing our 261 00:16:30,840 --> 00:16:33,800 Speaker 1: portfolio outflows and it's much the same as Turkey and 262 00:16:33,880 --> 00:16:36,480 Speaker 1: Argentina and much of emerging markets. You're just seeing you know, 263 00:16:36,840 --> 00:16:38,560 Speaker 1: I don't want to call it hot money, but foreign 264 00:16:38,600 --> 00:16:40,960 Speaker 1: investors who had invested in some of the local equity 265 00:16:41,000 --> 00:16:43,720 Speaker 1: and bond markets heading for the hills. And so we've 266 00:16:43,760 --> 00:16:45,680 Speaker 1: seen three point two I believe three. Are they heading 267 00:16:45,680 --> 00:16:47,760 Speaker 1: for the hills because they're losing money or are they 268 00:16:47,800 --> 00:16:50,600 Speaker 1: heading for the hills because they just fed up? Well, no, 269 00:16:50,760 --> 00:16:52,920 Speaker 1: I think I think it depends on where they where 270 00:16:52,920 --> 00:16:54,640 Speaker 1: they got in. I know that a lot of people 271 00:16:54,840 --> 00:16:58,680 Speaker 1: have look emerging market practitioners who have been you know, 272 00:16:58,760 --> 00:17:00,560 Speaker 1: involved in the space for are the better part of 273 00:17:00,560 --> 00:17:02,440 Speaker 1: the last few decades know that now is the time 274 00:17:02,440 --> 00:17:04,399 Speaker 1: when you want to be looking at emerging markets because 275 00:17:04,440 --> 00:17:07,400 Speaker 1: e M always overshoots to the upside on the downside, 276 00:17:07,680 --> 00:17:10,639 Speaker 1: and so it had overshot to the upside um. And 277 00:17:10,720 --> 00:17:12,800 Speaker 1: so people who are getting in in those kind of 278 00:17:13,000 --> 00:17:15,159 Speaker 1: you know, the nine things, so to speak, probably are 279 00:17:15,200 --> 00:17:16,920 Speaker 1: feeling quite a bit of the pain and they're not 280 00:17:17,000 --> 00:17:20,280 Speaker 1: unlikely to return anytime soon. But someone's got to take 281 00:17:20,320 --> 00:17:23,880 Speaker 1: those trades off their hands. And there are veteran emerging 282 00:17:23,960 --> 00:17:28,280 Speaker 1: market investors who were just thrilled to take someone else's money. Well, 283 00:17:28,320 --> 00:17:30,600 Speaker 1: I think it's the distress in the macro community. It's 284 00:17:30,720 --> 00:17:33,840 Speaker 1: it's the the the incremental tolerance for risk from a 285 00:17:33,840 --> 00:17:36,760 Speaker 1: long only emerging market investor is going to be very 286 00:17:36,760 --> 00:17:39,359 Speaker 1: small at this stage. But if you're an event driven, 287 00:17:39,520 --> 00:17:44,200 Speaker 1: bottom up fundamental UH investor with a long term horizon, 288 00:17:44,720 --> 00:17:46,520 Speaker 1: now might be a time to take a look. The same. 289 00:17:46,680 --> 00:17:48,800 Speaker 1: The same goes for global macro guys. There's plenty of 290 00:17:48,840 --> 00:17:52,280 Speaker 1: relative value opportunities when e M volatility takes up like 291 00:17:52,280 --> 00:17:54,160 Speaker 1: this and you overshoot to the one side or the other, 292 00:17:54,200 --> 00:17:56,639 Speaker 1: and so you want to just focus on South Africa, 293 00:17:56,720 --> 00:17:58,720 Speaker 1: You want to go somewhere else. You want to go Indonesia, 294 00:17:58,760 --> 00:18:02,160 Speaker 1: you want to go or Key, Argentina, is. So let's 295 00:18:02,200 --> 00:18:04,320 Speaker 1: talk about Turkey, right, because on a relative basis, and 296 00:18:04,320 --> 00:18:06,360 Speaker 1: we have touched on this last week, you know, you've 297 00:18:06,400 --> 00:18:09,960 Speaker 1: got um, you've got you know, uh, five year CDs 298 00:18:10,080 --> 00:18:12,680 Speaker 1: in Turkey trading at six hundred basis points. That's five 299 00:18:12,760 --> 00:18:16,919 Speaker 1: year default protection against you know, effectively you know, Turkey 300 00:18:16,960 --> 00:18:19,720 Speaker 1: defaulting on its dollar obligations, whereas in a place like 301 00:18:19,840 --> 00:18:23,160 Speaker 1: Argentina you see that same risk trading at eight hundred 302 00:18:23,160 --> 00:18:27,240 Speaker 1: basis points, meaning it's more expensive to heade your to 303 00:18:27,240 --> 00:18:30,160 Speaker 1: to protect against default. Now, I would argue that despite 304 00:18:30,200 --> 00:18:33,240 Speaker 1: all of the shortcomings of both nations, from a fundamental perspective, 305 00:18:34,400 --> 00:18:36,760 Speaker 1: Argentina is doing a lot of the right things. It's 306 00:18:36,760 --> 00:18:38,880 Speaker 1: appealing to the i m F, it's trying to enact 307 00:18:38,920 --> 00:18:42,440 Speaker 1: structural reform, whereas in Turkey they're just rejecting a lot 308 00:18:42,520 --> 00:18:45,320 Speaker 1: of you know, a lot of the and the good 309 00:18:45,359 --> 00:18:47,399 Speaker 1: advice of people who have been there before, the I 310 00:18:47,560 --> 00:18:49,880 Speaker 1: m F included, and and they're kind of shutting away 311 00:18:49,880 --> 00:18:52,080 Speaker 1: their offshore creditors and and and leaving them with a 312 00:18:52,080 --> 00:18:53,560 Speaker 1: bit of a bad taste in their mouth. And so 313 00:18:54,040 --> 00:18:56,800 Speaker 1: I don't think you're gonna see investors return to Turkey. 314 00:18:57,640 --> 00:19:00,359 Speaker 1: You know for quite some time, whereas in Argentina, I 315 00:19:00,400 --> 00:19:03,000 Speaker 1: think there's there's there's more of a reason to to 316 00:19:03,320 --> 00:19:06,240 Speaker 1: to look there. And and like I just said, Argentine 317 00:19:06,320 --> 00:19:08,840 Speaker 1: is trading way cheaper than Turkey is right now. So 318 00:19:08,880 --> 00:19:11,160 Speaker 1: from a relative perspective, you might see the global macro 319 00:19:11,200 --> 00:19:14,320 Speaker 1: communities start to look at these opportunities and and so yeah, 320 00:19:14,359 --> 00:19:16,159 Speaker 1: you know, on a duration neutral basis, if you're a 321 00:19:16,280 --> 00:19:19,000 Speaker 1: risk tolerant type of investor, that might be one way 322 00:19:19,000 --> 00:19:22,400 Speaker 1: to approach the market. So based on your experience, there 323 00:19:22,440 --> 00:19:26,960 Speaker 1: are event driven or distressed investors that are probably looking 324 00:19:27,040 --> 00:19:31,040 Speaker 1: to book air tickets from wherever their headquarters are, seriously 325 00:19:31,080 --> 00:19:34,320 Speaker 1: to Buenos Aires to get on the ground and start 326 00:19:34,359 --> 00:19:37,520 Speaker 1: talking to people and going and meeting people that need 327 00:19:37,560 --> 00:19:39,480 Speaker 1: cap Well, that's been going on, I mean, I mean, 328 00:19:39,680 --> 00:19:41,119 Speaker 1: if you just look at some of the bigger private 329 00:19:41,119 --> 00:19:43,280 Speaker 1: equity shops. I mean just today we you know, um 330 00:19:43,400 --> 00:19:46,440 Speaker 1: we saw um oak Tree, you know, and they basically 331 00:19:46,480 --> 00:19:49,120 Speaker 1: decided to take two point four billion of non performing 332 00:19:49,160 --> 00:19:52,080 Speaker 1: loans off the hands of China Huarrong Asset Management, which 333 00:19:52,080 --> 00:19:54,359 Speaker 1: by the way, is one of the largest issuers of 334 00:19:54,400 --> 00:19:56,200 Speaker 1: emerging market dollar debt. I mean, they're one of the 335 00:19:56,200 --> 00:19:59,439 Speaker 1: biggest constituents in the broad Bloomberg Berkley's you know e 336 00:19:59,600 --> 00:20:01,760 Speaker 1: m aggri get index. And so you know the fact 337 00:20:01,800 --> 00:20:03,200 Speaker 1: that you know, you've got a guy like j Wan 338 00:20:03,240 --> 00:20:05,720 Speaker 1: Trap who you know is on the record as having said, 339 00:20:05,760 --> 00:20:08,119 Speaker 1: you know, there is a bunch of you know, the 340 00:20:08,800 --> 00:20:10,680 Speaker 1: stress market is going to be coming back pretty soon. 341 00:20:10,960 --> 00:20:12,560 Speaker 1: You know, for him to start putting money to work 342 00:20:12,640 --> 00:20:16,520 Speaker 1: in China in local currency non performing loans, I think 343 00:20:16,560 --> 00:20:18,760 Speaker 1: that's relevant in today's day and age. So there is 344 00:20:18,760 --> 00:20:21,560 Speaker 1: an appetite for risk. It just depends on the type 345 00:20:21,560 --> 00:20:23,959 Speaker 1: of investor. And and that's what we're saying. We need 346 00:20:24,000 --> 00:20:26,640 Speaker 1: to see sort of a stronghand weekend exchange go on here. 347 00:20:26,880 --> 00:20:30,119 Speaker 1: Well done, Thanks very much. Always a pleasure, Damian sassaur Our, 348 00:20:30,200 --> 00:20:35,600 Speaker 1: chief Emerging market strategist for Bloomberg Intelligence. Always a value 349 00:20:35,640 --> 00:20:53,399 Speaker 1: your participation in your thoughts, much appreciated. Trade talks between 350 00:20:53,400 --> 00:20:57,680 Speaker 1: the United States and Canada are scheduled to reopen tomorrow, 351 00:20:57,960 --> 00:21:03,640 Speaker 1: this coming after the President threatened Ottawa with expulsion from 352 00:21:03,640 --> 00:21:07,879 Speaker 1: the North American Free Trade Agreement. And to tell us 353 00:21:07,920 --> 00:21:10,680 Speaker 1: more about what's going on with these negotiations is our 354 00:21:10,720 --> 00:21:14,679 Speaker 1: own Sean donnan Our, senior reporter for Trade and Globalization 355 00:21:14,760 --> 00:21:18,000 Speaker 1: for Bloomberg Sean, thank you very much for being with 356 00:21:18,119 --> 00:21:22,280 Speaker 1: us today. What exactly is different this week than last 357 00:21:22,320 --> 00:21:26,800 Speaker 1: week when it comes to trade and negotiations with Canada, Well, 358 00:21:27,080 --> 00:21:29,399 Speaker 1: you're right, it's Vu all over again in terms of 359 00:21:29,480 --> 00:21:32,880 Speaker 1: racing towards to save NAFTA, if you will. The big 360 00:21:32,880 --> 00:21:35,959 Speaker 1: story last week was was the Trump administration striking a 361 00:21:35,960 --> 00:21:38,879 Speaker 1: deal with with Mexico that it rolled out on Monday, 362 00:21:38,920 --> 00:21:42,639 Speaker 1: and then trying hurriedly to get Canada to join that. 363 00:21:43,000 --> 00:21:46,640 Speaker 1: I think the big story this week is how Canada 364 00:21:47,040 --> 00:21:51,040 Speaker 1: can can fit into Donald Trump's expectations but also react 365 00:21:51,680 --> 00:21:53,840 Speaker 1: to what has been some pretty heated rhetoric over the 366 00:21:53,880 --> 00:21:56,879 Speaker 1: last couple of days. Trump clearly is trying to raise 367 00:21:56,920 --> 00:22:00,200 Speaker 1: the pressure on Canada UH to get to the able 368 00:22:00,240 --> 00:22:03,200 Speaker 1: but also to kind of exceed to this deal on 369 00:22:03,200 --> 00:22:05,679 Speaker 1: on his terms, and it's hard to see how Canada 370 00:22:05,760 --> 00:22:08,760 Speaker 1: can do that for its own domestic political reasons. He's 371 00:22:08,760 --> 00:22:12,440 Speaker 1: also involved Richard Trumka, the president of the a f 372 00:22:12,560 --> 00:22:16,480 Speaker 1: l C I O Union. That's right, absolutely so. I mean, 373 00:22:16,640 --> 00:22:19,919 Speaker 1: the one of the problems that Donald Trump faces is 374 00:22:19,960 --> 00:22:22,520 Speaker 1: that no one wants a NAFTA without Canada, and that 375 00:22:22,640 --> 00:22:27,040 Speaker 1: of course gives some leverage to UH to Canada. And 376 00:22:27,080 --> 00:22:29,840 Speaker 1: one of those people over the weekend became Richard TRUMPKA, 377 00:22:29,880 --> 00:22:33,240 Speaker 1: who had given the sort of lukewarm welcome UH last 378 00:22:33,280 --> 00:22:36,440 Speaker 1: week to to to the NAFTA deal, and then over 379 00:22:36,480 --> 00:22:40,040 Speaker 1: the weekend said he couldn't see a role for a 380 00:22:40,160 --> 00:22:43,439 Speaker 1: NAFTA deal without Canada, which was in direct opposition to 381 00:22:43,480 --> 00:22:46,800 Speaker 1: the President who just the day before had tweeted that 382 00:22:46,880 --> 00:22:50,760 Speaker 1: he UH didn't see any legal reason why Canada had 383 00:22:50,800 --> 00:22:52,879 Speaker 1: to be involved. Again, this is this question of leverage. 384 00:22:52,920 --> 00:22:56,040 Speaker 1: Who's got the leverage in these negotiations. Trump clearly thinks 385 00:22:56,080 --> 00:22:59,320 Speaker 1: he can he can plow ahead, but Congress, the US 386 00:22:59,359 --> 00:23:03,280 Speaker 1: business community, the anto US labor movement all would like 387 00:23:03,320 --> 00:23:05,679 Speaker 1: to see Canada in this deal, and that obviously changes 388 00:23:05,720 --> 00:23:10,160 Speaker 1: the equation. Is the President and negotiators for the administration 389 00:23:10,560 --> 00:23:14,040 Speaker 1: using previous trade agreements in order to try to get 390 00:23:14,080 --> 00:23:18,160 Speaker 1: this leverage. And I'm referencing, for example, the publication of 391 00:23:18,200 --> 00:23:23,399 Speaker 1: the recently renegotiated free trade deal with South Korea. Yeah, 392 00:23:23,720 --> 00:23:25,520 Speaker 1: so I think one of the themes that I am 393 00:23:25,680 --> 00:23:29,560 Speaker 1: so over the weekend UH yesterday on Monday on Labor Day, UH, 394 00:23:29,720 --> 00:23:33,320 Speaker 1: the U S Trade representatives off. It's finally published essentially 395 00:23:33,320 --> 00:23:38,600 Speaker 1: the the text of renegotiated deal with South Korea. This 396 00:23:38,680 --> 00:23:41,840 Speaker 1: was one of Donald Trump's targets to kind of rip 397 00:23:41,920 --> 00:23:44,560 Speaker 1: up and and rework these these what he calls these 398 00:23:44,640 --> 00:23:47,760 Speaker 1: terrible trade agreements. And the answer is, what we've learned 399 00:23:47,760 --> 00:23:50,480 Speaker 1: from this is that it's a pretty mild rewrite of 400 00:23:50,480 --> 00:23:52,399 Speaker 1: of that trade agreement. There's no one in the business 401 00:23:52,440 --> 00:23:55,520 Speaker 1: community who is up in arms about this. It doesn't 402 00:23:55,640 --> 00:23:58,159 Speaker 1: liberalize trade between the US and South Korea, but it 403 00:23:58,240 --> 00:24:02,560 Speaker 1: certainly doesn't uh throw out this trade agreement that was 404 00:24:02,640 --> 00:24:05,800 Speaker 1: first negotiated by the Bush administration, the administration to George W. 405 00:24:05,960 --> 00:24:10,120 Speaker 1: Bush Um. What we've learned from that and also from 406 00:24:10,119 --> 00:24:14,080 Speaker 1: the deal with Mexico is that actually, on trade, Donald 407 00:24:14,080 --> 00:24:18,879 Speaker 1: Trump often talks tough talks and in extreme examples, and 408 00:24:18,920 --> 00:24:22,119 Speaker 1: his negotiators do as well, but the end result tends 409 00:24:22,160 --> 00:24:25,520 Speaker 1: to be a more benign rewrite and and the Canadians 410 00:24:25,560 --> 00:24:27,040 Speaker 1: will have that in mind. And it's one of the 411 00:24:27,040 --> 00:24:29,320 Speaker 1: reasons that the Canadians are probably at some point going 412 00:24:29,359 --> 00:24:32,000 Speaker 1: to be ready to sign on to the deal negotiated 413 00:24:32,000 --> 00:24:35,560 Speaker 1: with Mexico. Do the Canadians also have a copy of 414 00:24:35,600 --> 00:24:39,080 Speaker 1: the U s Constitution as part of their negotiating tools. 415 00:24:39,200 --> 00:24:44,159 Speaker 1: Because the senator for the Democratic senator from Oregon, Senator 416 00:24:44,240 --> 00:24:48,600 Speaker 1: Ron Widen, he's the top Democrat on the Senate Finance 417 00:24:48,680 --> 00:24:52,840 Speaker 1: Committee that oversees trade policy, He's basically said that the 418 00:24:52,880 --> 00:24:55,639 Speaker 1: president doesn't even have the power to follow through on 419 00:24:55,720 --> 00:24:59,920 Speaker 1: any of his threats having to do with Canada and NAFTA. Yeah, 420 00:25:00,160 --> 00:25:02,399 Speaker 1: and I think President Trump would dispute that. But the 421 00:25:03,359 --> 00:25:07,600 Speaker 1: point is that Congress under the US Constitution has the 422 00:25:07,720 --> 00:25:12,399 Speaker 1: power to regulate international commerce. For decades, it has kind 423 00:25:12,440 --> 00:25:17,359 Speaker 1: of deputized the executive or presidents to negotiate trade deals 424 00:25:17,359 --> 00:25:21,000 Speaker 1: and then they come back UH under the terms of 425 00:25:21,480 --> 00:25:24,000 Speaker 1: the rules that that are set by Congress, they come 426 00:25:24,040 --> 00:25:28,919 Speaker 1: back and present trade agreements to Congress to ratify UM. 427 00:25:28,960 --> 00:25:32,360 Speaker 1: And with NAFTA, there's a big legal legal debate going 428 00:25:32,440 --> 00:25:36,080 Speaker 1: on in Washington over just how much power President Trump 429 00:25:36,160 --> 00:25:40,399 Speaker 1: has to exit that deal. The treaty itself gives a 430 00:25:40,480 --> 00:25:43,680 Speaker 1: president the power to give six months notice that a 431 00:25:43,760 --> 00:25:48,000 Speaker 1: country is leaving UH the agreement, but Congress argues that 432 00:25:48,040 --> 00:25:51,359 Speaker 1: they really should have the vote on that as well. Again, 433 00:25:51,440 --> 00:25:53,480 Speaker 1: this is all about leverage and who's got leverage in 434 00:25:53,520 --> 00:25:56,760 Speaker 1: this negotiation with Canada. But there's no doubt that the 435 00:25:57,000 --> 00:25:58,960 Speaker 1: President Trump is being reined in by a lot of 436 00:25:58,960 --> 00:26:01,639 Speaker 1: people in UH and we're talking about both Democrats and 437 00:26:01,680 --> 00:26:05,439 Speaker 1: Republicans in Congress. Do you believe that the Canadian negotiating 438 00:26:05,520 --> 00:26:09,640 Speaker 1: position is taking into consideration the midterm elections that are 439 00:26:10,119 --> 00:26:13,760 Speaker 1: set for November. Absolutely, And I think they're also taking 440 00:26:13,760 --> 00:26:19,400 Speaker 1: into consideration their own elections, justin Trudeau's on elections next year. Uh, 441 00:26:19,400 --> 00:26:23,680 Speaker 1: he cannot look weak at home in these negotiations. And likewise, 442 00:26:23,720 --> 00:26:25,560 Speaker 1: there's a lot of U. S States and there's a 443 00:26:25,560 --> 00:26:29,040 Speaker 1: lot of people who report the work up on Capitol 444 00:26:29,119 --> 00:26:34,160 Speaker 1: Hill each week who have in mind the intense level 445 00:26:34,240 --> 00:26:37,040 Speaker 1: of trade that they do or that their companies do 446 00:26:37,200 --> 00:26:41,240 Speaker 1: with with Canada. Canada is the US is number one 447 00:26:41,359 --> 00:26:44,480 Speaker 1: export market. It's a bigger export market for the US 448 00:26:44,520 --> 00:26:48,040 Speaker 1: than China. It is all it. It accounts for fifteen 449 00:26:48,160 --> 00:26:50,720 Speaker 1: percent a little over that of all the trade that 450 00:26:50,760 --> 00:26:54,600 Speaker 1: the US does, which is akin to China. We forget 451 00:26:54,720 --> 00:26:58,239 Speaker 1: sometimes just how big an economic relationship it is that 452 00:26:58,280 --> 00:27:01,280 Speaker 1: the US has with its nor the neighbor. Well, that's 453 00:27:01,280 --> 00:27:03,159 Speaker 1: why we've got you to help us understand this and 454 00:27:03,240 --> 00:27:05,879 Speaker 1: keep us honest about it all. Sean Donnan is our 455 00:27:06,000 --> 00:27:10,200 Speaker 1: senior reporter for Trade and Globalization for Bloomberg and joins 456 00:27:10,280 --> 00:27:15,280 Speaker 1: us from Washington, d C. Where negotiations are set to 457 00:27:15,320 --> 00:27:18,480 Speaker 1: resume between the United States and Canada. That is scheduled 458 00:27:18,520 --> 00:27:23,520 Speaker 1: for tomorrow. Thanks very much. Thanks for listening to the 459 00:27:23,520 --> 00:27:26,640 Speaker 1: Bloomberg P and L podcast. You can subscribe and listen 460 00:27:26,640 --> 00:27:30,800 Speaker 1: to interviews at Apple Podcasts, SoundCloud, or whatever podcast platform 461 00:27:30,840 --> 00:27:34,760 Speaker 1: you prefer. I'm pim Fox. I'm on Twitter at pim Fox. 462 00:27:35,080 --> 00:27:38,600 Speaker 1: I'm on Twitter at Lisa Abramo. It's one before the podcast. 463 00:27:38,640 --> 00:27:41,240 Speaker 1: You can always catch us worldwide on Bloomberg Radio.