WEBVTT - Trump's UN Speech, Boris Johnson, & Climate Change 0:00:02.640 --> 0:00:05.360 Welcome to the Bloomberg Penel podcast. I'm Paul Sweene. You, 0:00:05.360 --> 0:00:07.680 along with my co host Lisa Brahma wits each day 0:00:07.720 --> 0:00:10.240 we bring you the most noteworthy and useful interviews for 0:00:10.280 --> 0:00:12.520 you and your money, whether at the grocery store or 0:00:12.560 --> 0:00:15.480 the trading floor. Find a Bloomberg Penl podcast on Apple 0:00:15.520 --> 0:00:17.960 podcast or wherever you listen to podcasts, as well as 0:00:17.960 --> 0:00:22.920 at Bloomberg dot com. Well, we just heard President Trump 0:00:23.680 --> 0:00:26.880 give his prepared remarks to the United Nations. UM to 0:00:26.960 --> 0:00:29.400 get the latest on kind of some feedback on kind 0:00:29.400 --> 0:00:31.800 of what we heard from President Trump's comments, we welcome 0:00:31.800 --> 0:00:34.920 Silia moson u S, Treasury reporter for Bloomberg News, joins 0:00:34.960 --> 0:00:37.279 us on the phone from Washington, d C. Selia, thanks 0:00:37.280 --> 0:00:40.159 so much for joining us. What were your initial thoughts 0:00:40.240 --> 0:00:44.960 of President Trump's speech before the United Nations. Well, he 0:00:45.000 --> 0:00:50.200 talked a lot about giving a anti globalist message there. 0:00:50.240 --> 0:00:52.000 I mean, that's what we heard. We talked. We heard 0:00:52.000 --> 0:00:57.080 about America's unrivaled military might. We heard him talk about 0:00:58.200 --> 0:01:01.320 not accepting a bad deal with China, that globalism has 0:01:01.480 --> 0:01:06.040 caused past leaders to ignore their national interests, and that 0:01:06.160 --> 0:01:08.760 every country has a right to defend their borders and 0:01:08.760 --> 0:01:11.600 that anyone who reaches the US will be turned away. 0:01:11.640 --> 0:01:14.560 So it was a little bit of a divisive message 0:01:15.440 --> 0:01:19.920 to a group of leaders who are trying to work multilaterally. 0:01:20.680 --> 0:01:23.000 I think that it would be important to talk about 0:01:23.040 --> 0:01:25.520 the delivery a little bit, because you're saying that there 0:01:25.640 --> 0:01:29.240 was a divisive message needed to talk about abortion, and 0:01:29.240 --> 0:01:33.000 he talked about a lot of things. Um, But I'm 0:01:33.040 --> 0:01:37.119 just wondering what you thought about his delivery. I mean, look, 0:01:37.800 --> 0:01:39.960 it went on for longer than it was supposed to 0:01:40.040 --> 0:01:43.920 as a lot of u N speeches do. Um. It 0:01:43.959 --> 0:01:46.720 was a little bit stilted. He was reading from a teleprompter, 0:01:46.840 --> 0:01:50.080 and the beginning it was very spirited, talking about China 0:01:50.560 --> 0:01:53.720 and talking about you know, sort of globalism and what 0:01:53.760 --> 0:01:56.840 it's done. But it did sort of towards the end, Um, 0:01:56.840 --> 0:01:58.960 whether he got tired. You know, this is not his 0:01:59.760 --> 0:02:04.200 uh where he naturally tends to um, you know, really 0:02:04.200 --> 0:02:07.880 grab people's attention, and these prepared teleprompter speeches. He's a 0:02:07.880 --> 0:02:10.240 little bit more passionate when he's speaking off the cuff 0:02:10.840 --> 0:02:13.200 and slea just also, he kind of spent a fair 0:02:13.200 --> 0:02:16.440 amount of time on our run kind of making maintaining 0:02:16.480 --> 0:02:22.320 a very strong postures relates to US Iranian relations. It 0:02:22.400 --> 0:02:25.960 was a strong posture, but the threat of war was 0:02:26.120 --> 0:02:29.040 absent from his remarks. He said he wants peace. He 0:02:29.120 --> 0:02:31.680 does not want war with anybody. So to me, it 0:02:31.720 --> 0:02:35.400 did signal that the door to peace is still open. 0:02:35.520 --> 0:02:38.520 He said, the fresh sanctions will not be easy unless 0:02:38.520 --> 0:02:43.120 they change behavior. Rather than saying, you know, we're gonna um, 0:02:43.160 --> 0:02:46.760 you know, lead more into this. Salahmos and thank you 0:02:46.800 --> 0:02:49.480 so much for being with us. Slams is Bloomberg News 0:02:49.840 --> 0:02:54.200 US Treasury reporter joining us from Washington, d C. On 0:02:54.240 --> 0:03:12.519 the phone following the U N addressed, it is a 0:03:12.680 --> 0:03:15.960 climate week. We've seen the protests in New York City 0:03:15.960 --> 0:03:20.280 and world wide cities as people ramp up the pressure 0:03:20.560 --> 0:03:22.919 to fight some of the effects of some of the 0:03:23.040 --> 0:03:25.919 changes that we've been observing. Here in the studio is 0:03:26.000 --> 0:03:29.000 Joey berg Sti, his chief executive officer of Seventh Generation, 0:03:29.080 --> 0:03:33.400 normally headquartered in Burlington, Vermont, but here with us in 0:03:33.440 --> 0:03:37.200 our Bloomberg Interactive Broker Studios in part for these climate 0:03:37.240 --> 0:03:39.640 talks that have been going on. So can you give 0:03:39.680 --> 0:03:42.080 us a sense of what you've been doing this week? Yeah, sure. 0:03:42.680 --> 0:03:44.760 Uh well, first of all, thanks for having me on. 0:03:45.000 --> 0:03:47.720 We kicked off Climate Week probably about a month ago 0:03:48.560 --> 0:03:51.600 when we decided that we really needed to help lift 0:03:51.720 --> 0:03:55.119 up the voices that are are all around the need 0:03:55.160 --> 0:03:58.600 to take urgent and immediate action UM, and decided that 0:03:58.640 --> 0:04:00.880 we would not only close down our offices for the 0:04:00.880 --> 0:04:03.640 climate strike that was on last Friday, the Global Climate Strike, 0:04:03.680 --> 0:04:06.520 and participate in that, but actually donate a whole week 0:04:06.560 --> 0:04:10.480 of our national television advertising time to three FT org 0:04:10.960 --> 0:04:13.040 so that they could really amplify the voices of the 0:04:13.320 --> 0:04:16.960 youth movement, which is absolutely unbelievable the amount of momentum 0:04:17.000 --> 0:04:20.240 they've been able to create around that. So we want 0:04:20.279 --> 0:04:23.120 to amplify the voice around the need to change UM. 0:04:23.160 --> 0:04:26.240 I spent the day yesterday uh at with the U 0:04:26.360 --> 0:04:30.800 N Global Compact. We were honored along with eighty six 0:04:30.800 --> 0:04:34.240 other companies that have so far taken a or made 0:04:34.240 --> 0:04:38.200 a real commitment to take the actions needed to address 0:04:38.520 --> 0:04:41.800 the need to limit climate change to one point five 0:04:41.839 --> 0:04:45.279 percent by and we were so proud to be part 0:04:45.320 --> 0:04:48.400 of that group. UM. But even more importantly, I was 0:04:48.440 --> 0:04:51.800 so impressed with the fact that these companies together represent 0:04:51.880 --> 0:04:54.960 two point three trillion dollars worth of sales. So this 0:04:55.040 --> 0:04:57.400 is not a group of small companies that are raising 0:04:57.400 --> 0:05:00.320 their voices like you might expect. There's a real tipping point, 0:05:00.560 --> 0:05:03.160 and we really want to to continue to help and 0:05:03.240 --> 0:05:06.159 see this movement tip and become real and see the 0:05:06.160 --> 0:05:10.680 same consensus amongst business and amongst policy leaders that we're 0:05:10.720 --> 0:05:14.080 seeing in the world amongst climate scientists for the need 0:05:14.120 --> 0:05:16.919 to to to really address climate change. So it's seventh generation. 0:05:17.000 --> 0:05:18.560 Just give us a sense of kind of the products 0:05:18.800 --> 0:05:23.000 you have and kind of how consumers actually interact with them. Sure, 0:05:23.440 --> 0:05:25.960 so we make a whole range of eco friendly home 0:05:26.000 --> 0:05:28.640 and personal care products. I always say that we do 0:05:28.760 --> 0:05:31.040 much more than just make these products. We're really trying 0:05:31.080 --> 0:05:33.400 to change the way the business is done. So as 0:05:33.440 --> 0:05:36.440 a Proud B corporation, we're committed to the triple bottom 0:05:36.440 --> 0:05:40.160 line of people, planets and profits UM. And we take 0:05:40.200 --> 0:05:43.080 our our philosophy that inspired our name from the great 0:05:43.120 --> 0:05:45.400 law of the Iroquois that in our every deliberation we 0:05:45.480 --> 0:05:47.440 must take into account the impact of our decisions on 0:05:47.480 --> 0:05:49.919 the next seven generations UM into the way that we 0:05:49.920 --> 0:05:53.440 create our products. And so we create products that are 0:05:53.440 --> 0:05:56.680 made from plant based ingredients, and not patrolling based ingredients. 0:05:56.760 --> 0:06:00.279 We ensure that all of our packaging is recite cool, 0:06:00.360 --> 0:06:04.760 not just recyclable, but actually made from recycled content. UM. 0:06:04.800 --> 0:06:07.040 So we think really deeply about every single thing that 0:06:07.080 --> 0:06:10.400 we make. And you know, this company was founded over 0:06:10.480 --> 0:06:14.760 thirty years ago around these principles and have been proudly 0:06:14.839 --> 0:06:17.600 trying to address the needs of the world we find 0:06:17.640 --> 0:06:21.039 ourselves in today. UM. And so everything we designed is 0:06:21.040 --> 0:06:23.440 really designed thinking about the world that's around us and 0:06:23.440 --> 0:06:25.720 how we can lower the our impact on the world 0:06:25.720 --> 0:06:28.960 around us. And have you seen sales increase at a 0:06:29.040 --> 0:06:32.200 rapid pace? Yeah, the business is doing incredibly well, so 0:06:32.360 --> 0:06:35.360 the market's responding. We've been growing really well. We're UM 0:06:35.440 --> 0:06:37.880 in the midst right now of a global expansion, which 0:06:37.920 --> 0:06:41.120 is incredibly exciting. Have you seen a lot of competitors 0:06:41.240 --> 0:06:44.159 try to come in with a similar message that could 0:06:44.160 --> 0:06:47.200 potentially be both a threat to your brand, but I'll 0:06:47.240 --> 0:06:49.839 be it perhaps encouraging on the other side of things. Yeah, 0:06:49.880 --> 0:06:53.400 I would say gratefully. We're seeing a lot of competition 0:06:53.640 --> 0:06:56.400 in the markets that we compete in, which is which 0:06:56.440 --> 0:06:59.119 is really exciting. UM. We were alone for a long time. 0:06:59.560 --> 0:07:02.240 More and more brands are coming in. They are more 0:07:02.240 --> 0:07:05.320 and more the largest players in the markets are introducing 0:07:05.839 --> 0:07:09.360 more eco friendly versions of the major brands, and for sure, 0:07:09.400 --> 0:07:12.720 that creates more competition, but it also pushes us to 0:07:12.760 --> 0:07:15.640 continue to innovate and to identify how can we continue 0:07:15.640 --> 0:07:19.440 to lead forward and drive our sustainability mission more and 0:07:19.440 --> 0:07:21.880 more aggressively over time. How tough is it for you 0:07:21.920 --> 0:07:27.320 guys to get shelf space? UM? Are are the supermarkets 0:07:27.320 --> 0:07:29.720 and other retailers. Are they open to your product that 0:07:29.800 --> 0:07:32.560 they recognize that it's a growth area? Or you, just 0:07:32.560 --> 0:07:34.480 like everybody else, you've gotta fight to the nail for 0:07:34.520 --> 0:07:37.120 self space. Like everybody else, we fight, we fight for 0:07:37.120 --> 0:07:39.320 the space, but we do it through real partnership, and 0:07:39.320 --> 0:07:41.520 we've built great partnerships with a number of the different 0:07:41.520 --> 0:07:44.960 retailers around the country UH and really helping them to 0:07:45.080 --> 0:07:49.480 develop the quote unquote natural business on their store shelves. 0:07:49.800 --> 0:07:52.520 They recognize increasing demand and actually, if you look at 0:07:52.520 --> 0:07:55.280 the categories we compete in, the vast majority of the 0:07:55.280 --> 0:07:59.040 growth in those categories is coming from brands like seventh Generation. 0:08:00.120 --> 0:08:03.400 What's the next innovation in UH? In your business? The 0:08:03.440 --> 0:08:05.520 one I'm the most excited about right now is we 0:08:05.640 --> 0:08:09.880 we just launched a ultra concentrated laundry detergent UM. We 0:08:09.960 --> 0:08:12.600 call it the Easy Dose Laundry because it's super convenient. 0:08:13.080 --> 0:08:15.720 The same number of doses, sixty six doses, but in 0:08:15.760 --> 0:08:17.920 a twenty three ounce bottle instead of a big hundred 0:08:17.920 --> 0:08:25.000 ounce bottle. So it is h lighter, less plastic, f 0:08:25.560 --> 0:08:28.000 less water, so you're not shipping as much UM as 0:08:28.120 --> 0:08:32.440 much around the around the continent UM and for consumers 0:08:32.480 --> 0:08:35.160 that has this automatic dosing future that makes it super 0:08:35.160 --> 0:08:38.760 easy to do your laundry. Jerry Burstein, thanks so much 0:08:38.920 --> 0:08:42.000 for joining us. Jerry Burstein is CEO of Seventh Generation 0:08:42.000 --> 0:08:44.720 based in Burlington, VERMP, joining us here on our Bloomberg 0:08:44.760 --> 0:08:48.360 Interact their broker studio talking to us about environmentally safe 0:08:48.520 --> 0:09:08.880 products and sustainability. Well. In an unprecedented and sweeping rebuke 0:09:08.960 --> 0:09:12.000 to the Premier at the Supreme Court's eleven judges found 0:09:12.000 --> 0:09:15.160 that bars Johnson had given Queen Elizabeth the second called 0:09:15.360 --> 0:09:19.000 unlawful advice to suspend the legislator. To get the latest 0:09:19.040 --> 0:09:22.880 on this every evolving story returned to Edward Evans, European 0:09:22.920 --> 0:09:25.880 calumnist for Bloomberg News. He is in our London studio, 0:09:25.920 --> 0:09:29.080 So Edward, just give our American audience at least a 0:09:29.120 --> 0:09:33.120 sense of how important and how unprecedented, Uh, this move 0:09:33.360 --> 0:09:35.560 is by the Supreme Court of the UK. Well, you 0:09:35.559 --> 0:09:37.920 have to understand the Supreme Court in the UK is 0:09:38.080 --> 0:09:40.560 very different from the Supreme Court in the US. The 0:09:40.640 --> 0:09:44.160 judges here are far more reluctant to get involved in 0:09:44.320 --> 0:09:48.520 overtly political questions and have much more limited powers in 0:09:48.640 --> 0:09:51.079 what they can do. So ready to come out today 0:09:51.120 --> 0:09:53.959 as they have done and say that Johnson's prorogation of 0:09:54.040 --> 0:09:58.679 Parliament was illegal and that it cannot stand is truly unprecedented. 0:09:59.000 --> 0:10:03.480 This is uh, effectively a legal hand grenade thrown very 0:10:03.679 --> 0:10:06.640 directly at Boris Johnson. And he has come out fighting. 0:10:06.679 --> 0:10:09.760 He's vowed to go on and force the UK out 0:10:09.800 --> 0:10:12.400 of the European Union with or without a deal next month. 0:10:12.720 --> 0:10:14.840 And there are note and he has resisted calls so 0:10:14.920 --> 0:10:19.080 far to resign. So the idea of him resigning, the 0:10:19.320 --> 0:10:23.800 argument that Boris Johnson cannot remain as Prime Minister after 0:10:23.840 --> 0:10:27.360 this ruling. Can you explain the logic there? But two things. 0:10:28.000 --> 0:10:31.280 It is unprecedented for a prime minister's advice to the 0:10:31.360 --> 0:10:35.200 Queen to be ruled illegal, effectively misleading the monarch in 0:10:35.240 --> 0:10:37.560 the British system is about as bad as it gets 0:10:37.600 --> 0:10:40.880 for a prime minister, but more practically, without the right 0:10:41.000 --> 0:10:44.760 paroe Parliament, he really has no control over the legislature. 0:10:44.800 --> 0:10:48.040 He doesn't command a majority, he doesn't command control over 0:10:48.080 --> 0:10:51.440 the parliamentary timetable, and he can't now even stop Parliament 0:10:51.440 --> 0:10:53.920 from the city. This is a government in office but 0:10:54.000 --> 0:10:56.960 not in power. Now that his escape route would normally 0:10:56.960 --> 0:10:59.000 be to call an election, but since the fixed turn 0:10:59.040 --> 0:11:02.400 Parliament's Act of eleven, he can't do that without the 0:11:02.440 --> 0:11:04.800 support of at least two thirds of MPs, and so 0:11:04.880 --> 0:11:09.280 far they've said no. So Edward, it appears that Boris 0:11:09.360 --> 0:11:12.320 Janson is going to fly back to London from New 0:11:12.400 --> 0:11:14.360 York this evening, perhaps cutting his trip a little bit, 0:11:14.360 --> 0:11:16.800 sure to deal with this issue when he gets to 0:11:16.880 --> 0:11:22.079 Parliament and tomorrow what happens. Parliament will resume sitting tomorrow morning. 0:11:22.080 --> 0:11:24.640 There won't be Prime Minister's question time as there usually 0:11:24.720 --> 0:11:27.200 is on a Wednesday, but he can expect to face 0:11:27.320 --> 0:11:31.000 urgent questions for lawmakers from lawmakers now over what he 0:11:31.120 --> 0:11:34.840 does for over Brexit. You may also see lawmakers trying 0:11:34.840 --> 0:11:38.360 to put down their own measures to stop a no 0:11:38.520 --> 0:11:42.200 deal brexit. Now, Boris Johnson has of course got a 0:11:42.200 --> 0:11:46.319 site problem in that lawmakers have stopped him essentially legally 0:11:46.400 --> 0:11:48.920 from leaving the European Union on October thirty one without 0:11:48.920 --> 0:11:51.080 a deal. If that's the situation, he'll be forced to 0:11:51.080 --> 0:11:54.160 seek an extension. They're great fear was that by using 0:11:54.200 --> 0:11:58.200 prorogation Boris Johnson would try and stop them from from 0:11:58.240 --> 0:12:00.480 from stopping him essentially from lead to in just that 0:12:00.559 --> 0:12:03.280 leaving without a deal. Now that Parliament is back, you 0:12:03.320 --> 0:12:05.720 can expect them to take a very close interest in 0:12:05.760 --> 0:12:07.960 what he's doing and take every legal trick in the 0:12:07.960 --> 0:12:10.760 book to box him into a corner. Here, what kind 0:12:10.800 --> 0:12:14.280 of support does Boris Johnson have within his own party? 0:12:15.440 --> 0:12:17.880 That's a very good question. And don't forget this is 0:12:17.920 --> 0:12:20.800 a man who lost twenty one MPs after they voted 0:12:21.360 --> 0:12:24.400 against him. He does not. He's forty short of odd 0:12:24.520 --> 0:12:27.199 members short of a majority. This is somebody who is 0:12:27.240 --> 0:12:31.000 commanding a minority government. That said, what you've seen under 0:12:31.000 --> 0:12:34.360 Boris Johnson is the Tory Party turn itself essentially into 0:12:34.360 --> 0:12:38.360 a Brexit party, and with those supporters this appears to 0:12:38.440 --> 0:12:41.040 be popular don't forget that. The whole narrative that he's 0:12:41.040 --> 0:12:44.560 trying to set up is the is the establishment denying you, 0:12:44.720 --> 0:12:48.400 the people, the democratic choice that you made in the referendum. 0:12:48.559 --> 0:12:52.600 So you have this essentially Parliament versus people election. And 0:12:52.679 --> 0:12:55.440 the point here is that this if you look at 0:12:55.440 --> 0:12:58.760 where Boris Johnson is in the polls right now, he's ahead, 0:12:58.880 --> 0:13:02.120 He's you know, corp Ammy Corbyn is trailing him in 0:13:02.120 --> 0:13:05.280 the Posty's about i think three points below former Labor 0:13:05.320 --> 0:13:08.440 leader Michael Foote in which was Labor's worst defeat I 0:13:08.440 --> 0:13:11.439 think in the twentieth century. So that is that is 0:13:11.480 --> 0:13:14.920 the political situation for Boris Edward. It's a you know, 0:13:15.040 --> 0:13:18.400 seems like bars Johnson has lost almost at every single 0:13:18.480 --> 0:13:20.600 turn here, whether it's ruling from the courts or just 0:13:20.679 --> 0:13:25.120 rebukes from Parliament, hasn't really had any material wins. Is 0:13:25.160 --> 0:13:29.760 there a way for him out of this? An election 0:13:30.080 --> 0:13:33.839 is the way out for him in the longer term. Ultimately, 0:13:34.480 --> 0:13:38.160 with this, nothing changes until the parliamentary arithmetic changes, because 0:13:38.160 --> 0:13:41.320 it's Boris Johnson hasn't got control of the situation, but 0:13:41.360 --> 0:13:44.280 he knows what he wants. Parliament has got control of 0:13:44.280 --> 0:13:46.959 the situation. But doesn't know what it wants. It's opposed 0:13:47.000 --> 0:13:50.040 to leaving without a deal, but beyond that there's no agreement. 0:13:50.240 --> 0:13:53.199 So to get out of to asstially resolve this situation, 0:13:53.600 --> 0:13:56.840 Johnson needs to get to an election or he needs 0:13:56.840 --> 0:14:00.400 to get a deal, a deal agreed with other EU leaders. 0:14:00.480 --> 0:14:03.040 Now they've got no incentive to give him any kind 0:14:03.120 --> 0:14:05.760 of concessions given that they can see Parliament is dead 0:14:05.760 --> 0:14:08.960 opposed to Britain leaving without a deal. So it's again 0:14:09.040 --> 0:14:10.800 it all comes down now, I think to an election, 0:14:10.920 --> 0:14:14.760 extension of the negotiations and then an election, and the 0:14:14.840 --> 0:14:18.600 pound is up, which just you know shows that where 0:14:18.600 --> 0:14:20.880 where we're at this point. Edward Evans, thank you so 0:14:20.960 --> 0:14:24.240 much for being with us Edward Evans as European columnists 0:14:24.640 --> 0:14:27.640 and Brexit editor for Bloomberg News, joining us from our 0:14:27.760 --> 0:14:30.520 London studios, and it really is just you know, the 0:14:30.640 --> 0:14:34.360 message deepens and again it seems like perhaps the read 0:14:34.400 --> 0:14:37.880 through in markets is that this could move closer to 0:14:37.960 --> 0:14:42.240 avoiding a no deal Brexit, because Boris Johnson seemed dead 0:14:42.240 --> 0:14:44.040 set on that, right. I mean, that's sort of the 0:14:44.400 --> 0:14:46.680 I'm still holding out to the second referendum. I'm sticking 0:14:46.880 --> 0:14:49.080 to my my guns there, but I don't think so 0:14:49.680 --> 0:15:07.480 you keep you keep doing that mean well. An increasing 0:15:07.560 --> 0:15:10.160 focus on the part of both regulators as well as 0:15:10.200 --> 0:15:15.480 investment managers has been a shift from public to private markets, 0:15:15.520 --> 0:15:18.960 where you have more companies waiting longer or perhaps never 0:15:19.040 --> 0:15:22.120 going public, and private markets are growing at a much 0:15:22.200 --> 0:15:24.880 faster pace. The question being, and this is something SEC 0:15:25.040 --> 0:15:27.920 chair Jake Clayton has been looking into, how do you 0:15:28.000 --> 0:15:32.040 open up private markets to mom and pop investors and 0:15:32.440 --> 0:15:36.240 others who want to get a slice of American dynamism 0:15:36.280 --> 0:15:40.240 at its ground floor? Joining us now, Kenwian uh ken Win, 0:15:40.760 --> 0:15:45.000 chief executive officer and co founder of Republic in our 0:15:45.040 --> 0:15:47.720 Bloomberg Interactive Broker Studios here, Ken thank you so much 0:15:47.720 --> 0:15:49.040 for being with us. Can you just give us a 0:15:49.080 --> 0:15:51.720 sense of how Republic fits into that sort of narrative 0:15:51.880 --> 0:15:54.920 A Lisa, thank you for having me. Republic is a 0:15:55.000 --> 0:16:00.640 full stack investment platform focusing on private booty stage companies 0:16:00.680 --> 0:16:03.800 that are changing how we live and work in the future. 0:16:04.120 --> 0:16:06.920 So it used to be uh not lawful for a 0:16:07.000 --> 0:16:10.560 non millionaire to invest privately. The law changed about three 0:16:10.600 --> 0:16:15.000 years ago and we based on that changed launch Republic. 0:16:16.440 --> 0:16:18.440 So just gives a sense of kind of how your 0:16:18.440 --> 0:16:21.040 company has evolved, how many people use your platform, like 0:16:21.080 --> 0:16:23.960 how many investors are coming to saying hey, we're interested 0:16:23.960 --> 0:16:26.080 in the private market, and and and how do you 0:16:26.120 --> 0:16:27.640 source your deal flow? And just kind of how it 0:16:27.680 --> 0:16:31.640 all plays out there. On the investors side, we've grown 0:16:31.640 --> 0:16:36.280 to be about three and fifty thousand investors on the platform, 0:16:36.360 --> 0:16:40.040 and out of about ten thousand applications from company looking 0:16:40.040 --> 0:16:42.960 to raise, we've vetted and may offer us to about 0:16:42.960 --> 0:16:46.600 two hundred to launch and so far have successfully raised 0:16:46.600 --> 0:16:48.640 for about a hundred and forty of them. And they 0:16:48.800 --> 0:16:52.920 ranged from very early stage companies to women founders building 0:16:52.960 --> 0:16:56.600 the next drone down to company that have already raised 0:16:56.720 --> 0:17:00.800 venture capital but want to engage the consumer. They stakeholders, 0:17:01.000 --> 0:17:04.800 you know, the next uber and lift. The earliest investors 0:17:05.160 --> 0:17:08.119 got to be the drivers that supported the company, and 0:17:08.200 --> 0:17:10.080 currently that's not the case. So I hope that that 0:17:10.119 --> 0:17:13.480 would change. How do you decide what is likely to 0:17:13.480 --> 0:17:17.280 be a successful company. We do have deep heritage to 0:17:17.880 --> 0:17:20.960 the venture space. We came out of angel Lists, one 0:17:20.960 --> 0:17:24.679 of the premier private fundraising platform, so we do apply 0:17:24.800 --> 0:17:28.439 eventual lens looking at domain expertise, looking at whether or 0:17:28.440 --> 0:17:32.520 not the founding team has the maturity, the awareness around 0:17:32.520 --> 0:17:35.880 corporate governance and the resilience to build to be able 0:17:35.920 --> 0:17:38.439 that space to win what they aiming to do, and 0:17:38.480 --> 0:17:42.080 how related how relatable it is to the mainstream audience. 0:17:42.359 --> 0:17:44.520 So what are some of the sectors or types of 0:17:44.560 --> 0:17:48.760 companies that you've been funding recently When it comes to 0:17:49.280 --> 0:17:53.600 the crowd mainstream audience investing, I think it's both marketing 0:17:53.640 --> 0:17:57.760 and fundraising, so naturally it's more appealing to B to 0:17:57.920 --> 0:18:01.160 C companies that consumer folk is. But we have had 0:18:01.240 --> 0:18:05.040 success raising over a million dollars for very early stage 0:18:05.240 --> 0:18:08.439 bt B companies as well. One concern, I mean, there 0:18:08.440 --> 0:18:11.160 are a number of concerns, and opening up private markets 0:18:11.160 --> 0:18:14.960 are certainly the venture capital stage to mom and pop investors. 0:18:14.960 --> 0:18:17.920 But one is liquidity, the idea that you can invest 0:18:17.960 --> 0:18:19.720 in something, but you can't take your money out. You 0:18:19.800 --> 0:18:22.600 gotta wait and pray that your investment is going to 0:18:22.680 --> 0:18:24.960 pay off. So you know, how do you sort of 0:18:25.000 --> 0:18:30.520 address that issue? For sure? The fact that private investing 0:18:30.600 --> 0:18:34.280 is illiquid and highly risky is something that you've got 0:18:34.280 --> 0:18:37.080 to make sure that the investing public is aware of. 0:18:37.400 --> 0:18:40.440 But I view it Slay an asset class, meaning if 0:18:40.520 --> 0:18:43.400 you're gonna put away some money that you don't need 0:18:43.560 --> 0:18:46.679 right away but may need it in twenty years or 0:18:46.720 --> 0:18:50.639 for your children. Private investing maybe a part you should 0:18:50.640 --> 0:18:53.440 consider well. But if you're investing, let's say in an 0:18:53.480 --> 0:18:57.120 equity is basically an equity infusion of these nascent companies, 0:18:57.160 --> 0:19:00.280 you just have to wonder what's your cash out tie frame? 0:19:00.280 --> 0:19:01.960 I mean, is it just an I p O or 0:19:02.119 --> 0:19:03.800 is it just that it gets big enough that you 0:19:03.880 --> 0:19:06.600 can how do you how do you monetize? It used 0:19:06.600 --> 0:19:09.840 to be five to six years that he's unless and 0:19:09.880 --> 0:19:13.280 into the communities, gets acquired or go I p O. 0:19:13.680 --> 0:19:18.120 But nowadays you are seeing secondary market being built equity 0:19:18.200 --> 0:19:22.760 date equities and equitate and Republic itself will have plans 0:19:22.800 --> 0:19:25.520 for a secondary platform in the future. Is so that 0:19:25.720 --> 0:19:28.200 people will have, you know, more ways to to get 0:19:28.200 --> 0:19:31.199 out to liquidate. Has been a year we've had some 0:19:31.280 --> 0:19:33.280 very high profile I p o s, a lot of 0:19:33.280 --> 0:19:36.880 tech I p O s, Uber Lift and some others 0:19:36.880 --> 0:19:40.240 that haven't done well and kind of surprised the market 0:19:40.280 --> 0:19:42.800 with how poorly they've done. And now we're I guess 0:19:42.800 --> 0:19:44.880 the next in the line is we work and It's 0:19:44.920 --> 0:19:48.200 been very controversial because in part because of the valuation 0:19:48.600 --> 0:19:51.639 differentially we've seen between the private market forty seven billion 0:19:51.680 --> 0:19:55.080 dollars that soft Bank recently funded at and what appears 0:19:55.119 --> 0:19:57.000 to be the range in the public market of tendive 0:19:57.000 --> 0:20:01.800 fifteen billion. Is that Does that concern you about maybe 0:20:01.840 --> 0:20:04.640 the valuations in the private market world are just too 0:20:04.680 --> 0:20:08.040 frothy at this moment. In fact, point, I think it 0:20:08.160 --> 0:20:12.600 highlights the value proposition of people being able to invest earlier. 0:20:13.280 --> 0:20:16.159 When you allow people to invest a hundred dollars fifty 0:20:16.480 --> 0:20:19.800 dollars in a company you know, one or two year 0:20:19.840 --> 0:20:24.439 out since inception, if and when the company succeeds, the 0:20:24.520 --> 0:20:26.879 potential return can be a hundred acts or in some 0:20:26.920 --> 0:20:29.480 cases over a thousand acts. They may not and you 0:20:29.520 --> 0:20:33.479 may lose everything. But that ability to invest early up 0:20:33.520 --> 0:20:35.920 until now most people are not even aware of it, 0:20:36.200 --> 0:20:39.879 And the fact that companies take longer, much longer to 0:20:39.920 --> 0:20:43.040 go I p O now means that much of the 0:20:43.280 --> 0:20:48.200 return the wealth the generation the wealth generation potential alreadio 0:20:48.200 --> 0:20:51.360 occurred during the private stage, meaning that those who invest 0:20:51.480 --> 0:20:55.880 after a company has gone IPO typically holds the detail 0:20:56.000 --> 0:20:58.840 end of the bat. So if there is let's say, 0:20:59.280 --> 0:21:02.680 taking this sort of out to its logical conclusion. Here, 0:21:03.000 --> 0:21:07.560 if there is a robust secondary market created for private investments, 0:21:07.840 --> 0:21:10.240 and you have mom and pop investors that can get in, 0:21:10.680 --> 0:21:14.399 what's the difference between that private market and a public market. 0:21:15.040 --> 0:21:17.439 The difference would be that what we're aiming to do 0:21:17.560 --> 0:21:22.760 is to bring the private market public so that it 0:21:22.880 --> 0:21:26.640 resembles more of what the laws and the equosystem intended 0:21:26.720 --> 0:21:30.160 to be back in the sixties and seventies, back when 0:21:30.160 --> 0:21:33.680 company went I p O at fifty millions, a hundred millions, 0:21:33.920 --> 0:21:36.359 Google when I p O at a relatively low price, 0:21:36.600 --> 0:21:40.640 and then rise in with Amazon. But nowadays the private 0:21:40.680 --> 0:21:44.439 market is no longer accessible and the public market is 0:21:44.520 --> 0:21:47.720 also not no longer attractive. So we're aiming to make 0:21:47.760 --> 0:21:52.440 the public market or the private market public again. Can 0:21:52.440 --> 0:21:54.240 when thanks so much for joining us. We really appreciate 0:21:54.280 --> 0:21:57.760 this very interesting. Ken Wins, the chief executive officer and 0:21:57.800 --> 0:22:00.840 co founder of Republic during us here in our Bloomberg 0:22:00.840 --> 0:22:04.159 Interactive Broker Studio, which you know, again it just kind 0:22:04.160 --> 0:22:05.879 of brings up an issue which I think which can 0:22:06.000 --> 0:22:08.120 highlight it a little bit is some of the valuation 0:22:08.200 --> 0:22:10.000 questions and are now being brought up by some of 0:22:10.040 --> 0:22:13.320 these higher profile, bigger deals and can mention you know, 0:22:13.320 --> 0:22:15.280 a lot of these companies are staying private longer. Maybe 0:22:15.320 --> 0:22:18.280 some of that that upside is being uh is not 0:22:18.359 --> 0:22:20.960 available for the public market. But this is so fascinating, 0:22:21.040 --> 0:22:22.760 right because this has been going on for a long time, 0:22:22.760 --> 0:22:25.280 and you've seen record amounts of money going into private 0:22:25.480 --> 0:22:28.760 adventure funds, and you just have to wonder at what 0:22:28.920 --> 0:22:32.200 point these markets are going to challenge some of the 0:22:32.440 --> 0:22:36.240 sort of parameters of public markets saying they're not fitting 0:22:36.240 --> 0:22:38.040 the bill in some way, which is the reason why 0:22:38.040 --> 0:22:39.879 everyone's going to these other markets. I mean, there are 0:22:39.880 --> 0:22:42.000 a lot of really good questions here fasactally a lot 0:22:42.080 --> 0:22:44.840 of the sec to pay attention to. Thanks for listening 0:22:44.880 --> 0:22:47.280