1 00:00:02,880 --> 00:00:07,200 Speaker 1: Broadcasting live to New York, Bloomberg eleventh bo to Washington, 2 00:00:07,320 --> 00:00:12,320 Speaker 1: d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco, 3 00:00:12,440 --> 00:00:16,680 Speaker 1: Bloomberg nine to the Countries series Exam General one nineteen 4 00:00:16,800 --> 00:00:20,320 Speaker 1: and around the globe the Bloomberg Radio plus David Bloomberg 5 00:00:20,320 --> 00:00:24,200 Speaker 1: dot Com. This is taking Stock. Coming up on taking 6 00:00:24,280 --> 00:00:28,040 Speaker 1: stock George Schultz. He is one of only two individuals 7 00:00:28,080 --> 00:00:31,680 Speaker 1: who have held four different federal cabinet posts. He's taught 8 00:00:31,680 --> 00:00:34,360 Speaker 1: at three of the country's great universities. He served as 9 00:00:34,440 --> 00:00:37,160 Speaker 1: the U S Secretary of Labor, Director of the Office 10 00:00:37,159 --> 00:00:40,560 Speaker 1: of Management and Budget, US Treasury Secretary, and Secretary of State. 11 00:00:40,840 --> 00:00:43,960 Speaker 1: And he's got a new book, Blueprint for America. We're 12 00:00:44,000 --> 00:00:47,279 Speaker 1: gonna have him on for a special interview right now. 13 00:00:47,360 --> 00:00:49,440 Speaker 1: Let's get some special news from Charlie Pellet in the 14 00:00:49,440 --> 00:00:52,040 Speaker 1: Bloomberg newsroom, and I thank you Vin Fox. We've got 15 00:00:52,040 --> 00:00:54,920 Speaker 1: the DAL, the SMP, NEZ Dank all advancing right now. 16 00:00:55,280 --> 00:00:59,120 Speaker 1: Technology shares are rallying amid deal activity, a topic we 17 00:00:59,120 --> 00:01:02,160 Speaker 1: were just talking about right here on taking stock, corporate 18 00:01:02,200 --> 00:01:06,600 Speaker 1: earnings spurring optimism that results this season will be sturdy 19 00:01:06,720 --> 00:01:12,040 Speaker 1: enough to help sustain equities at record levels. A Bloomberg exclusive. 20 00:01:12,120 --> 00:01:14,720 Speaker 1: You heard it on Bloomberg Radio and Television. We sent 21 00:01:14,760 --> 00:01:18,560 Speaker 1: down with Christine Lagarde, Managing Director of the International Monetary Fund. 22 00:01:18,640 --> 00:01:22,959 Speaker 1: She did talk about a number of topics, including Brexit 23 00:01:23,160 --> 00:01:26,840 Speaker 1: and what it means for Europe and if anything, in Europe, 24 00:01:27,480 --> 00:01:29,920 Speaker 1: the decision made by the British people to exit the 25 00:01:29,959 --> 00:01:34,120 Speaker 1: European Union has accelerated enough of you the need to 26 00:01:34,800 --> 00:01:38,720 Speaker 1: um consolidate the European Union to give a strong message 27 00:01:38,760 --> 00:01:42,360 Speaker 1: to the European people about the benefit that Europe can 28 00:01:42,400 --> 00:01:47,000 Speaker 1: actually deliver for them, Concentrating on the positive, focusing on 29 00:01:47,120 --> 00:01:50,720 Speaker 1: key shoes for the people of Europe. Hasbro is suffering 30 00:01:50,720 --> 00:01:53,760 Speaker 1: its worst stock decline in nine months after reporting a 31 00:01:53,840 --> 00:01:57,840 Speaker 1: slowdown in growth of boy oriented toys, hurt in part 32 00:01:57,880 --> 00:02:00,360 Speaker 1: by the lack of a new Transformers film. Right now 33 00:02:00,360 --> 00:02:04,240 Speaker 1: has Bros Down seven point two percent. Netflix gaining for 34 00:02:04,280 --> 00:02:07,080 Speaker 1: a fifth day it does report after the closing bell today. 35 00:02:07,120 --> 00:02:10,920 Speaker 1: Netflix up now by one point one percent. Equities higher, 36 00:02:11,080 --> 00:02:14,360 Speaker 1: SMP five hundred Index up five to sixty six, a 37 00:02:14,360 --> 00:02:17,320 Speaker 1: gain of two tenths of one percent. NAS Stack up 38 00:02:17,400 --> 00:02:19,840 Speaker 1: twenty nine, a gain of six tenths of one percent down, 39 00:02:19,880 --> 00:02:22,720 Speaker 1: Industrial is up sixteen a gain of one tenth of 40 00:02:22,760 --> 00:02:25,880 Speaker 1: one percent, Tenure down eight thirty seconds that yield one 41 00:02:25,919 --> 00:02:29,200 Speaker 1: point five seven percent. Gold of a dollar ninety beyounced 42 00:02:29,240 --> 00:02:31,680 Speaker 1: the thirty nine a game there are of point one percent, 43 00:02:32,080 --> 00:02:36,359 Speaker 1: and crude oil down cents thirty four barrel a drop 44 00:02:36,480 --> 00:02:40,000 Speaker 1: there of one point three percent. Add two thirty two 45 00:02:40,080 --> 00:02:42,080 Speaker 1: on Wall Street. Now let's take a look at other 46 00:02:42,200 --> 00:02:46,120 Speaker 1: news from around the world. Thank you, Charlie from the 47 00:02:46,120 --> 00:02:49,480 Speaker 1: Bloomberg News room. I'm Jill Schneider. As the Republican Convention 48 00:02:49,560 --> 00:02:53,000 Speaker 1: opens in Cleveland, the Donald Trump campaign says hosts State 49 00:02:53,040 --> 00:02:56,680 Speaker 1: Governor John Kasik of Ohio is being petulant by avoiding 50 00:02:56,720 --> 00:02:59,760 Speaker 1: the event. As Bloomberg's Bob Moon tells us, who is 51 00:02:59,800 --> 00:03:02,720 Speaker 1: aren't there may be as important as who is. Perhaps 52 00:03:02,760 --> 00:03:04,639 Speaker 1: one of the most familiar faces tonight will be actor 53 00:03:04,680 --> 00:03:07,880 Speaker 1: Scott theo GOP is now Trump's party, says campaign manager 54 00:03:07,919 --> 00:03:10,679 Speaker 1: Paul Manaford, and this is his convention. Here changed the 55 00:03:10,760 --> 00:03:13,280 Speaker 1: face of the republic, says he can live without the 56 00:03:13,320 --> 00:03:15,200 Speaker 1: support of the Bush family and with the absence of 57 00:03:15,240 --> 00:03:18,600 Speaker 1: the last Republican president. I proudly accept your nomination. You 58 00:03:18,680 --> 00:03:21,240 Speaker 1: also won't see the party's last two standard bearrasmt Romney 59 00:03:21,320 --> 00:03:23,800 Speaker 1: or John Mcking. Trump's wife, Malania, will be speaking tonight 60 00:03:23,800 --> 00:03:26,040 Speaker 1: along with Texas Governor Rick Perry and former New York 61 00:03:26,080 --> 00:03:28,440 Speaker 1: Mayor Rudy Giuliani on the theme of quote making America 62 00:03:28,520 --> 00:03:30,760 Speaker 1: safe again. The mother of a Bengazi attack victim, and 63 00:03:30,800 --> 00:03:32,760 Speaker 1: marine and Navy seal veterans will speak on that hot 64 00:03:32,800 --> 00:03:36,040 Speaker 1: button issue Bob Moon Bloomberg Radio. Hillary Clinton is calling 65 00:03:36,080 --> 00:03:39,640 Speaker 1: for people to stop targeting police officers. The presumptive Democratic 66 00:03:39,720 --> 00:03:42,240 Speaker 1: nominee made the plea while speaking at the n Double 67 00:03:42,280 --> 00:03:47,440 Speaker 1: Act National Convention in Cincinnati today. Three police officers murdered 68 00:03:48,080 --> 00:03:54,200 Speaker 1: in an apparent premeditated ambush and baton rouge. This madness 69 00:03:54,840 --> 00:03:57,280 Speaker 1: has to stop. Clinton also took a swipe at Donald 70 00:03:57,280 --> 00:03:59,800 Speaker 1: Trump for turning down an invitation from the Double A 71 00:03:59,840 --> 00:04:02,960 Speaker 1: c P to speak at the convention. Baltimore's mayor says 72 00:04:03,000 --> 00:04:05,120 Speaker 1: an officer who was acquitted today in the death of 73 00:04:05,160 --> 00:04:08,120 Speaker 1: Freddie Gray will now face an administrative review by the 74 00:04:08,160 --> 00:04:11,800 Speaker 1: police department. Mayor Stephanie Rawlings Blake tweeted the statement after 75 00:04:11,880 --> 00:04:15,640 Speaker 1: Lieutenant Brian Rice was acquitted of manslaughter and other charges 76 00:04:15,720 --> 00:04:18,120 Speaker 1: in Gray's death. He was critically injured in the back 77 00:04:18,160 --> 00:04:20,920 Speaker 1: of a police fan and died a week later. Global 78 00:04:20,960 --> 00:04:23,240 Speaker 1: News twenty four hours a day, powered by more than 79 00:04:24,160 --> 00:04:27,200 Speaker 1: journalists and analysts in more than one hundred twenty countries. 80 00:04:27,480 --> 00:04:31,120 Speaker 1: I'm Jill Schneider, and this is Bloomberg, Charlie, and we 81 00:04:31,279 --> 00:04:34,280 Speaker 1: thank you and again recapping stocks or higher SMP five 82 00:04:34,320 --> 00:04:37,320 Speaker 1: hundred index up five now to sixty six, a gain 83 00:04:37,360 --> 00:04:40,680 Speaker 1: of two tenths of one percent. I'm Charlie Pellett and 84 00:04:40,800 --> 00:04:45,640 Speaker 1: that's a Bloomberg Business flash. Listening to taking Stock with 85 00:04:45,800 --> 00:04:50,880 Speaker 1: pim Box at Kathleen Hayes on Bloomberg Radio. George Schultz 86 00:04:51,080 --> 00:04:54,119 Speaker 1: is that Thomas W. And Susan B. Ford Distinguished Fellow 87 00:04:54,200 --> 00:04:57,560 Speaker 1: at the Hoover Institution, but he may be more widely 88 00:04:57,680 --> 00:05:00,719 Speaker 1: known as one of only two Into vigils who has 89 00:05:00,800 --> 00:05:05,560 Speaker 1: held four different federal cabinet posts, including Secretary of the Treasury, 90 00:05:05,640 --> 00:05:08,840 Speaker 1: Secretary of State, as well as Secretary of Labor and 91 00:05:08,920 --> 00:05:11,600 Speaker 1: the Director of the Office of Management and Budget. He 92 00:05:11,680 --> 00:05:15,040 Speaker 1: has a new book. It is entitled Blueprint for America, 93 00:05:15,440 --> 00:05:19,000 Speaker 1: and he joins us now from the Hoover Institution in Stanford. 94 00:05:19,240 --> 00:05:22,680 Speaker 1: California Secretary Schultz, thank you very much for being with us. Sir, 95 00:05:23,400 --> 00:05:26,640 Speaker 1: good morning. Tell us a little bit about this new book, 96 00:05:26,720 --> 00:05:30,599 Speaker 1: Blueprint for America, and particular, wonder if you could describe 97 00:05:30,880 --> 00:05:35,960 Speaker 1: what you feel about campaigning and the political process related 98 00:05:36,279 --> 00:05:41,000 Speaker 1: to a political campaign. Well, let's book arose out of 99 00:05:41,120 --> 00:05:47,440 Speaker 1: some discussions among people here at Hoover and Stanford. And 100 00:05:48,000 --> 00:05:51,240 Speaker 1: as we discussed, we said, you know, the country has 101 00:05:51,240 --> 00:05:53,039 Speaker 1: got a lot of problems. We ought to write about 102 00:05:53,080 --> 00:05:57,960 Speaker 1: them and a nonpartisan kind of an effort to say 103 00:05:58,040 --> 00:06:01,360 Speaker 1: what are the problems, what should we do? And the 104 00:06:01,600 --> 00:06:05,960 Speaker 1: essays are by different people. We have booked at each 105 00:06:06,000 --> 00:06:10,160 Speaker 1: other's essays, but they're all signed individual. That is the 106 00:06:10,240 --> 00:06:14,520 Speaker 1: principle of accountability is there in the book. So we've 107 00:06:14,560 --> 00:06:18,280 Speaker 1: covered a lot of issues economic issues mainly, but some 108 00:06:18,480 --> 00:06:22,880 Speaker 1: spending problems and governance problems so on in international problems. 109 00:06:24,080 --> 00:06:28,520 Speaker 1: Now you've described campaigning as ultimately an act of division. 110 00:06:28,680 --> 00:06:31,799 Speaker 1: What do you mean by that? Well, when you campaign, 111 00:06:32,960 --> 00:06:35,560 Speaker 1: you're saying I'm better than you are, so vote for me. 112 00:06:36,560 --> 00:06:40,480 Speaker 1: It's an act of empasizing a difference and saying my 113 00:06:40,680 --> 00:06:45,400 Speaker 1: side is right. So it's an act of division. But 114 00:06:45,520 --> 00:06:47,080 Speaker 1: as soon as you get into the office, you have 115 00:06:47,240 --> 00:06:52,240 Speaker 1: to govern, and governing is almost exactly the opposite. Governing 116 00:06:52,360 --> 00:06:54,400 Speaker 1: is working with people and trying to find where you 117 00:06:54,440 --> 00:06:58,320 Speaker 1: could get some common ground and get something accomplished. It's 118 00:06:58,320 --> 00:07:02,839 Speaker 1: a different, different kind of activity, and in my opinion, 119 00:07:02,920 --> 00:07:06,760 Speaker 1: we've over the last decade we've had too much campaign 120 00:07:06,839 --> 00:07:10,520 Speaker 1: and not enough governing. You write also about foreign and 121 00:07:10,640 --> 00:07:15,240 Speaker 1: security policy and what you describe as the capacity to execute. 122 00:07:15,360 --> 00:07:16,640 Speaker 1: What do you mean? And I'm wondering if you can 123 00:07:16,680 --> 00:07:24,360 Speaker 1: offer an example. Well, at the start of World War Two, 124 00:07:25,320 --> 00:07:30,000 Speaker 1: I'm in Marine Corps boot camp and the sergeant hands 125 00:07:30,040 --> 00:07:32,400 Speaker 1: me my rifle. He says, take good care of this rifle. 126 00:07:32,560 --> 00:07:36,960 Speaker 1: This is your best friend. And remember one thing. Never 127 00:07:37,120 --> 00:07:39,920 Speaker 1: point this rifle to anybody unless you're willing to pull 128 00:07:40,000 --> 00:07:47,200 Speaker 1: a trigger. No empty threats. So that's boot camp wisdom. 129 00:07:47,880 --> 00:07:49,640 Speaker 1: And of course, if you've got a rifle, you can 130 00:07:49,720 --> 00:07:52,160 Speaker 1: pull a trigger and you can execute. But let me 131 00:07:52,200 --> 00:07:55,640 Speaker 1: give you a different kind of example. Early in Ronald 132 00:07:55,680 --> 00:08:01,080 Speaker 1: Reagan's presidency, the air traffic controllers struck and people came 133 00:08:01,160 --> 00:08:04,400 Speaker 1: running into the office of Mr President's Presidents. Very complicated, 134 00:08:05,200 --> 00:08:09,240 Speaker 1: he said, It's not complicated, it's simple. They took an 135 00:08:09,280 --> 00:08:14,280 Speaker 1: oath of office, they violated it there out and all 136 00:08:14,280 --> 00:08:16,440 Speaker 1: over the world. People said, the guys a man crazy, 137 00:08:16,560 --> 00:08:19,800 Speaker 1: these other guys keeping it from points flying. But he 138 00:08:19,880 --> 00:08:23,960 Speaker 1: had experienced as governor of California, and he had as 139 00:08:24,040 --> 00:08:27,320 Speaker 1: his secretary of Transportation a man who had been the 140 00:08:27,400 --> 00:08:32,000 Speaker 1: chief executive of a large transportation company. So working together, 141 00:08:32,720 --> 00:08:36,560 Speaker 1: they had military people, had management people running the towers, 142 00:08:36,640 --> 00:08:39,480 Speaker 1: and then they had a very aggressive training program, and 143 00:08:39,520 --> 00:08:42,680 Speaker 1: they kept the paint flying. And all over the world 144 00:08:42,760 --> 00:08:45,320 Speaker 1: people said, hey, watch out, the guy plays for keeps. 145 00:08:46,679 --> 00:08:50,840 Speaker 1: So he established the fact that he meant he would speak, 146 00:08:50,920 --> 00:08:53,719 Speaker 1: and he meant it, and he could carry through and execute. 147 00:08:55,360 --> 00:08:58,679 Speaker 1: You speak about self confidence and the strength of purpose 148 00:08:58,800 --> 00:09:05,000 Speaker 1: in the United States, tell us more h Well, if 149 00:09:05,040 --> 00:09:09,760 Speaker 1: you're going to accomplish something in the world, or domestically 150 00:09:09,840 --> 00:09:12,960 Speaker 1: for that matter, you have to be able to say, 151 00:09:13,000 --> 00:09:18,240 Speaker 1: I'd understand the problem, I'm realistic, and I have the 152 00:09:18,360 --> 00:09:21,920 Speaker 1: capacity to deal with it, and I have a kind 153 00:09:21,960 --> 00:09:25,240 Speaker 1: of spirit in the country that says we can solve 154 00:09:25,280 --> 00:09:29,000 Speaker 1: our problems and let's go get it done. Well again, 155 00:09:29,160 --> 00:09:33,800 Speaker 1: I think during the Reagan period we were strong, we 156 00:09:33,920 --> 00:09:38,640 Speaker 1: were realistic, but somehow Ronald Reagan lifted our spirits up 157 00:09:39,720 --> 00:09:41,840 Speaker 1: so we felt good about the things we were doing, 158 00:09:43,040 --> 00:09:48,960 Speaker 1: and they basically worked in describing current conditions around the world. 159 00:09:49,280 --> 00:09:53,360 Speaker 1: You talk about religion and its role in foreign policy. 160 00:09:53,880 --> 00:09:58,800 Speaker 1: Could you give us more about that. Well, for three centuries, 161 00:10:00,040 --> 00:10:04,319 Speaker 1: religion and war have been kept apart. But all of 162 00:10:04,360 --> 00:10:09,880 Speaker 1: a sudden, now with the ISIS business in Al Qaeda, 163 00:10:10,679 --> 00:10:15,760 Speaker 1: we find war and religion are joined. That means it's 164 00:10:15,760 --> 00:10:18,439 Speaker 1: a different kind of war, and they have to do 165 00:10:18,640 --> 00:10:22,160 Speaker 1: you're gonna wage it and be successfully. Have to say 166 00:10:22,200 --> 00:10:25,800 Speaker 1: to yourself, what is this new kind of war? It 167 00:10:25,960 --> 00:10:28,199 Speaker 1: has a place, but it's got more than one place, 168 00:10:29,800 --> 00:10:36,520 Speaker 1: evolving places, and it has tentacles that expressed themselves. So 169 00:10:36,640 --> 00:10:38,959 Speaker 1: I have to say that's that's the nature of the 170 00:10:39,840 --> 00:10:42,160 Speaker 1: least that we're fighting against, and now we have to 171 00:10:42,520 --> 00:10:47,240 Speaker 1: adapt our tactics to that. Thank you very much. Former 172 00:10:47,320 --> 00:10:51,199 Speaker 1: Secretary of State George Schultz joining us from the Hoover Institution, 173 00:10:51,480 --> 00:10:55,640 Speaker 1: speaking about his new book entitled Blueprint for America. This 174 00:10:56,280 --> 00:11:05,040 Speaker 1: is Bloomberg coming up on taking stock. Turkey widens its 175 00:11:05,200 --> 00:11:09,439 Speaker 1: purge as a crackdown on the military continues following a 176 00:11:09,600 --> 00:11:13,120 Speaker 1: failed military coup we've got more details ahead.