WEBVTT - George Shultz: War and Religion Are Joined, Need to Adapt (Aud) 0:00:02.880 --> 0:00:07.200 Broadcasting live to New York, Bloomberg eleventh bo to Washington, 0:00:07.320 --> 0:00:12.320 d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco, 0:00:12.440 --> 0:00:16.680 Bloomberg nine to the Countries series Exam General one nineteen 0:00:16.800 --> 0:00:20.320 and around the globe the Bloomberg Radio plus David Bloomberg 0:00:20.320 --> 0:00:24.200 dot Com. This is taking Stock. Coming up on taking 0:00:24.280 --> 0:00:28.040 stock George Schultz. He is one of only two individuals 0:00:28.080 --> 0:00:31.680 who have held four different federal cabinet posts. He's taught 0:00:31.680 --> 0:00:34.360 at three of the country's great universities. He served as 0:00:34.440 --> 0:00:37.160 the U S Secretary of Labor, Director of the Office 0:00:37.159 --> 0:00:40.560 of Management and Budget, US Treasury Secretary, and Secretary of State. 0:00:40.840 --> 0:00:43.960 And he's got a new book, Blueprint for America. We're 0:00:44.000 --> 0:00:47.279 gonna have him on for a special interview right now. 0:00:47.360 --> 0:00:49.440 Let's get some special news from Charlie Pellet in the 0:00:49.440 --> 0:00:52.040 Bloomberg newsroom, and I thank you Vin Fox. We've got 0:00:52.040 --> 0:00:54.920 the DAL, the SMP, NEZ Dank all advancing right now. 0:00:55.280 --> 0:00:59.120 Technology shares are rallying amid deal activity, a topic we 0:00:59.120 --> 0:01:02.160 were just talking about right here on taking stock, corporate 0:01:02.200 --> 0:01:06.600 earnings spurring optimism that results this season will be sturdy 0:01:06.720 --> 0:01:12.040 enough to help sustain equities at record levels. A Bloomberg exclusive. 0:01:12.120 --> 0:01:14.720 You heard it on Bloomberg Radio and Television. We sent 0:01:14.760 --> 0:01:18.560 down with Christine Lagarde, Managing Director of the International Monetary Fund. 0:01:18.640 --> 0:01:22.959 She did talk about a number of topics, including Brexit 0:01:23.160 --> 0:01:26.840 and what it means for Europe and if anything, in Europe, 0:01:27.480 --> 0:01:29.920 the decision made by the British people to exit the 0:01:29.959 --> 0:01:34.120 European Union has accelerated enough of you the need to 0:01:34.800 --> 0:01:38.720 um consolidate the European Union to give a strong message 0:01:38.760 --> 0:01:42.360 to the European people about the benefit that Europe can 0:01:42.400 --> 0:01:47.000 actually deliver for them, Concentrating on the positive, focusing on 0:01:47.120 --> 0:01:50.720 key shoes for the people of Europe. Hasbro is suffering 0:01:50.720 --> 0:01:53.760 its worst stock decline in nine months after reporting a 0:01:53.840 --> 0:01:57.840 slowdown in growth of boy oriented toys, hurt in part 0:01:57.880 --> 0:02:00.360 by the lack of a new Transformers film. Right now 0:02:00.360 --> 0:02:04.240 has Bros Down seven point two percent. Netflix gaining for 0:02:04.280 --> 0:02:07.080 a fifth day it does report after the closing bell today. 0:02:07.120 --> 0:02:10.920 Netflix up now by one point one percent. Equities higher, 0:02:11.080 --> 0:02:14.360 SMP five hundred Index up five to sixty six, a 0:02:14.360 --> 0:02:17.320 gain of two tenths of one percent. NAS Stack up 0:02:17.400 --> 0:02:19.840 twenty nine, a gain of six tenths of one percent down, 0:02:19.880 --> 0:02:22.720 Industrial is up sixteen a gain of one tenth of 0:02:22.760 --> 0:02:25.880 one percent, Tenure down eight thirty seconds that yield one 0:02:25.919 --> 0:02:29.200 point five seven percent. Gold of a dollar ninety beyounced 0:02:29.240 --> 0:02:31.680 the thirty nine a game there are of point one percent, 0:02:32.080 --> 0:02:36.359 and crude oil down cents thirty four barrel a drop 0:02:36.480 --> 0:02:40.000 there of one point three percent. Add two thirty two 0:02:40.080 --> 0:02:42.080 on Wall Street. Now let's take a look at other 0:02:42.200 --> 0:02:46.120 news from around the world. Thank you, Charlie from the 0:02:46.120 --> 0:02:49.480 Bloomberg News room. I'm Jill Schneider. As the Republican Convention 0:02:49.560 --> 0:02:53.000 opens in Cleveland, the Donald Trump campaign says hosts State 0:02:53.040 --> 0:02:56.680 Governor John Kasik of Ohio is being petulant by avoiding 0:02:56.720 --> 0:02:59.760 the event. As Bloomberg's Bob Moon tells us, who is 0:02:59.800 --> 0:03:02.720 aren't there may be as important as who is. Perhaps 0:03:02.760 --> 0:03:04.639 one of the most familiar faces tonight will be actor 0:03:04.680 --> 0:03:07.880 Scott theo GOP is now Trump's party, says campaign manager 0:03:07.919 --> 0:03:10.679 Paul Manaford, and this is his convention. Here changed the 0:03:10.760 --> 0:03:13.280 face of the republic, says he can live without the 0:03:13.320 --> 0:03:15.200 support of the Bush family and with the absence of 0:03:15.240 --> 0:03:18.600 the last Republican president. I proudly accept your nomination. You 0:03:18.680 --> 0:03:21.240 also won't see the party's last two standard bearrasmt Romney 0:03:21.320 --> 0:03:23.800 or John Mcking. Trump's wife, Malania, will be speaking tonight 0:03:23.800 --> 0:03:26.040 along with Texas Governor Rick Perry and former New York 0:03:26.080 --> 0:03:28.440 Mayor Rudy Giuliani on the theme of quote making America 0:03:28.520 --> 0:03:30.760 safe again. The mother of a Bengazi attack victim, and 0:03:30.800 --> 0:03:32.760 marine and Navy seal veterans will speak on that hot 0:03:32.800 --> 0:03:36.040 button issue Bob Moon Bloomberg Radio. Hillary Clinton is calling 0:03:36.080 --> 0:03:39.640 for people to stop targeting police officers. The presumptive Democratic 0:03:39.720 --> 0:03:42.240 nominee made the plea while speaking at the n Double 0:03:42.280 --> 0:03:47.440 Act National Convention in Cincinnati today. Three police officers murdered 0:03:48.080 --> 0:03:54.200 in an apparent premeditated ambush and baton rouge. This madness 0:03:54.840 --> 0:03:57.280 has to stop. Clinton also took a swipe at Donald 0:03:57.280 --> 0:03:59.800 Trump for turning down an invitation from the Double A 0:03:59.840 --> 0:04:02.960 c P to speak at the convention. Baltimore's mayor says 0:04:03.000 --> 0:04:05.120 an officer who was acquitted today in the death of 0:04:05.160 --> 0:04:08.120 Freddie Gray will now face an administrative review by the 0:04:08.160 --> 0:04:11.800 police department. Mayor Stephanie Rawlings Blake tweeted the statement after 0:04:11.880 --> 0:04:15.640 Lieutenant Brian Rice was acquitted of manslaughter and other charges 0:04:15.720 --> 0:04:18.120 in Gray's death. He was critically injured in the back 0:04:18.160 --> 0:04:20.920 of a police fan and died a week later. Global 0:04:20.960 --> 0:04:23.240 News twenty four hours a day, powered by more than 0:04:24.160 --> 0:04:27.200 journalists and analysts in more than one hundred twenty countries. 0:04:27.480 --> 0:04:31.120 I'm Jill Schneider, and this is Bloomberg, Charlie, and we 0:04:31.279 --> 0:04:34.280 thank you and again recapping stocks or higher SMP five 0:04:34.320 --> 0:04:37.320 hundred index up five now to sixty six, a gain 0:04:37.360 --> 0:04:40.680 of two tenths of one percent. I'm Charlie Pellett and 0:04:40.800 --> 0:04:45.640 that's a Bloomberg Business flash. Listening to taking Stock with 0:04:45.800 --> 0:04:50.880 pim Box at Kathleen Hayes on Bloomberg Radio. George Schultz 0:04:51.080 --> 0:04:54.119 is that Thomas W. And Susan B. Ford Distinguished Fellow 0:04:54.200 --> 0:04:57.560 at the Hoover Institution, but he may be more widely 0:04:57.680 --> 0:05:00.719 known as one of only two Into vigils who has 0:05:00.800 --> 0:05:05.560 held four different federal cabinet posts, including Secretary of the Treasury, 0:05:05.640 --> 0:05:08.840 Secretary of State, as well as Secretary of Labor and 0:05:08.920 --> 0:05:11.600 the Director of the Office of Management and Budget. He 0:05:11.680 --> 0:05:15.040 has a new book. It is entitled Blueprint for America, 0:05:15.440 --> 0:05:19.000 and he joins us now from the Hoover Institution in Stanford. 0:05:19.240 --> 0:05:22.680 California Secretary Schultz, thank you very much for being with us. Sir, 0:05:23.400 --> 0:05:26.640 good morning. Tell us a little bit about this new book, 0:05:26.720 --> 0:05:30.599 Blueprint for America, and particular, wonder if you could describe 0:05:30.880 --> 0:05:35.960 what you feel about campaigning and the political process related 0:05:36.279 --> 0:05:41.000 to a political campaign. Well, let's book arose out of 0:05:41.120 --> 0:05:47.440 some discussions among people here at Hoover and Stanford. And 0:05:48.000 --> 0:05:51.240 as we discussed, we said, you know, the country has 0:05:51.240 --> 0:05:53.039 got a lot of problems. We ought to write about 0:05:53.080 --> 0:05:57.960 them and a nonpartisan kind of an effort to say 0:05:58.040 --> 0:06:01.360 what are the problems, what should we do? And the 0:06:01.600 --> 0:06:05.960 essays are by different people. We have booked at each 0:06:06.000 --> 0:06:10.160 other's essays, but they're all signed individual. That is the 0:06:10.240 --> 0:06:14.520 principle of accountability is there in the book. So we've 0:06:14.560 --> 0:06:18.280 covered a lot of issues economic issues mainly, but some 0:06:18.480 --> 0:06:22.880 spending problems and governance problems so on in international problems. 0:06:24.080 --> 0:06:28.520 Now you've described campaigning as ultimately an act of division. 0:06:28.680 --> 0:06:31.799 What do you mean by that? Well, when you campaign, 0:06:32.960 --> 0:06:35.560 you're saying I'm better than you are, so vote for me. 0:06:36.560 --> 0:06:40.480 It's an act of empasizing a difference and saying my 0:06:40.680 --> 0:06:45.400 side is right. So it's an act of division. But 0:06:45.520 --> 0:06:47.080 as soon as you get into the office, you have 0:06:47.240 --> 0:06:52.240 to govern, and governing is almost exactly the opposite. Governing 0:06:52.360 --> 0:06:54.400 is working with people and trying to find where you 0:06:54.440 --> 0:06:58.320 could get some common ground and get something accomplished. It's 0:06:58.320 --> 0:07:02.839 a different, different kind of activity, and in my opinion, 0:07:02.920 --> 0:07:06.760 we've over the last decade we've had too much campaign 0:07:06.839 --> 0:07:10.520 and not enough governing. You write also about foreign and 0:07:10.640 --> 0:07:15.240 security policy and what you describe as the capacity to execute. 0:07:15.360 --> 0:07:16.640 What do you mean? And I'm wondering if you can 0:07:16.680 --> 0:07:24.360 offer an example. Well, at the start of World War Two, 0:07:25.320 --> 0:07:30.000 I'm in Marine Corps boot camp and the sergeant hands 0:07:30.040 --> 0:07:32.400 me my rifle. He says, take good care of this rifle. 0:07:32.560 --> 0:07:36.960 This is your best friend. And remember one thing. Never 0:07:37.120 --> 0:07:39.920 point this rifle to anybody unless you're willing to pull 0:07:40.000 --> 0:07:47.200 a trigger. No empty threats. So that's boot camp wisdom. 0:07:47.880 --> 0:07:49.640 And of course, if you've got a rifle, you can 0:07:49.720 --> 0:07:52.160 pull a trigger and you can execute. But let me 0:07:52.200 --> 0:07:55.640 give you a different kind of example. Early in Ronald 0:07:55.680 --> 0:08:01.080 Reagan's presidency, the air traffic controllers struck and people came 0:08:01.160 --> 0:08:04.400 running into the office of Mr President's Presidents. Very complicated, 0:08:05.200 --> 0:08:09.240 he said, It's not complicated, it's simple. They took an 0:08:09.280 --> 0:08:14.280 oath of office, they violated it there out and all 0:08:14.280 --> 0:08:16.440 over the world. People said, the guys a man crazy, 0:08:16.560 --> 0:08:19.800 these other guys keeping it from points flying. But he 0:08:19.880 --> 0:08:23.960 had experienced as governor of California, and he had as 0:08:24.040 --> 0:08:27.320 his secretary of Transportation a man who had been the 0:08:27.400 --> 0:08:32.000 chief executive of a large transportation company. So working together, 0:08:32.720 --> 0:08:36.560 they had military people, had management people running the towers, 0:08:36.640 --> 0:08:39.480 and then they had a very aggressive training program, and 0:08:39.520 --> 0:08:42.680 they kept the paint flying. And all over the world 0:08:42.760 --> 0:08:45.320 people said, hey, watch out, the guy plays for keeps. 0:08:46.679 --> 0:08:50.840 So he established the fact that he meant he would speak, 0:08:50.920 --> 0:08:53.719 and he meant it, and he could carry through and execute. 0:08:55.360 --> 0:08:58.679 You speak about self confidence and the strength of purpose 0:08:58.800 --> 0:09:05.000 in the United States, tell us more h Well, if 0:09:05.040 --> 0:09:09.760 you're going to accomplish something in the world, or domestically 0:09:09.840 --> 0:09:12.960 for that matter, you have to be able to say, 0:09:13.000 --> 0:09:18.240 I'd understand the problem, I'm realistic, and I have the 0:09:18.360 --> 0:09:21.920 capacity to deal with it, and I have a kind 0:09:21.960 --> 0:09:25.240 of spirit in the country that says we can solve 0:09:25.280 --> 0:09:29.000 our problems and let's go get it done. Well again, 0:09:29.160 --> 0:09:33.800 I think during the Reagan period we were strong, we 0:09:33.920 --> 0:09:38.640 were realistic, but somehow Ronald Reagan lifted our spirits up 0:09:39.720 --> 0:09:41.840 so we felt good about the things we were doing, 0:09:43.040 --> 0:09:48.960 and they basically worked in describing current conditions around the world. 0:09:49.280 --> 0:09:53.360 You talk about religion and its role in foreign policy. 0:09:53.880 --> 0:09:58.800 Could you give us more about that. Well, for three centuries, 0:10:00.040 --> 0:10:04.319 religion and war have been kept apart. But all of 0:10:04.360 --> 0:10:09.880 a sudden, now with the ISIS business in Al Qaeda, 0:10:10.679 --> 0:10:15.760 we find war and religion are joined. That means it's 0:10:15.760 --> 0:10:18.439 a different kind of war, and they have to do 0:10:18.640 --> 0:10:22.160 you're gonna wage it and be successfully. Have to say 0:10:22.200 --> 0:10:25.800 to yourself, what is this new kind of war? It 0:10:25.960 --> 0:10:28.199 has a place, but it's got more than one place, 0:10:29.800 --> 0:10:36.520 evolving places, and it has tentacles that expressed themselves. So 0:10:36.640 --> 0:10:38.959 I have to say that's that's the nature of the 0:10:39.840 --> 0:10:42.160 least that we're fighting against, and now we have to 0:10:42.520 --> 0:10:47.240 adapt our tactics to that. Thank you very much. Former 0:10:47.320 --> 0:10:51.199 Secretary of State George Schultz joining us from the Hoover Institution, 0:10:51.480 --> 0:10:55.640 speaking about his new book entitled Blueprint for America. This 0:10:56.280 --> 0:11:05.040 is Bloomberg coming up on taking stock. Turkey widens its 0:11:05.200 --> 0:11:09.439 purge as a crackdown on the military continues following a 0:11:09.600 --> 0:11:13.120 failed military coup we've got more details ahead.