WEBVTT - EXIM's Hochberg: Shelby EXIM Block Is Jeopardizing Jobs (Audio)

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<v Speaker 1>Global business news twenty four hours a day. If Bloomberg

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<v Speaker 1>This is a Bloomberg Business Flash from Bloomberg World Headquarters.

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<v Speaker 1>I'm Katherine Cowdery. Wall Street extended the rally, sending the

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<v Speaker 1>SMP five foundered to its strongest two day climb in

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<v Speaker 1>four months. Tension is easing over the impact of a

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<v Speaker 1>UK exit from the European Union. Energy shares capped their

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<v Speaker 1>best two days since Marches crewd jumped. Oil climbed after

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<v Speaker 1>reports showed crude inventories dropped for a sixth week, while

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<v Speaker 1>the dollar retreated. Among itst piers, the Dow Industrial Laverage

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<v Speaker 1>climb two hundred eighty five points one point six percent

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<v Speaker 1>to close at seventeen thousand, six hundred ninety four, The

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<v Speaker 1>SMP five hunder game thirty five points one point seven

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<v Speaker 1>percent to close at two thousand seventy and the NASTAC

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<v Speaker 1>added eighty seven points one point nine percent to close

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<v Speaker 1>at forty seven seventy nine. West Texas Intermedia crude oil

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<v Speaker 1>up a dollar seventy three of barrel three point six

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<v Speaker 1>percent to forty eight. Spot gold up three dollars thirty

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<v Speaker 1>cents an ounced to thirty and a ten year treasury

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<v Speaker 1>down eleven thirty seconds with the yield of one point

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<v Speaker 1>five zero percent. And that's a Bloomberg business flash. You're

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<v Speaker 1>listening to taking stock with pim Box and Kathleen Hayes

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<v Speaker 1>on Bloomberg Radio. An exit x M Bank stalemate delayed

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<v Speaker 1>some plane deliveries. That's according to Boeing, a headline that

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<v Speaker 1>ran on the Bloomberg yesterday. Uh. In fact, Jackie Collins,

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<v Speaker 1>writing in The New York Times, rites earlier in the

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<v Speaker 1>week that Tomorrow Thursday is an ignominious anniversary for the

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<v Speaker 1>government agency that helps finance foreigners purchases of American exports.

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<v Speaker 1>Thanks to a single senator, it's been a full year

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<v Speaker 1>that the eighty two year old Export Inport Bank could

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<v Speaker 1>approve deals exceeding ten million dollars, a limit that rules

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<v Speaker 1>out high dollar deals on airplanes, power generations, heavy equipment,

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<v Speaker 1>and New Year actors. No wonder that Boeing has reported

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<v Speaker 1>that news. Now, let's introduce a man who is the

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<v Speaker 1>head of the x M Bank is here to talk

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<v Speaker 1>to us about what's going on and what it means

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<v Speaker 1>for exports from the United States. Fred Hawkbird Chairman and

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<v Speaker 1>President of the Export Import Bank of the United States,

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<v Speaker 1>joining me in studio. Thank you for coming in, Thanks

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<v Speaker 1>for having me so. First of all, remind people what

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<v Speaker 1>the excellent Bank is. It's not quite a hundred years old,

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<v Speaker 1>but it's been around for a while, around for a while.

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<v Speaker 1>The Export Inport Bank United States is a trade bank

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<v Speaker 1>for the United States. We've had it since nineteen two.

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<v Speaker 1>FDR started it. And the understanding that to create more jobs,

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<v Speaker 1>we need to do more exporting and their risks and

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<v Speaker 1>both real and imagine from exporting. So the x and

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<v Speaker 1>Bank was created to support US jobs and we sell

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<v Speaker 1>goods overseas, level the playing field with foreign competitors, and

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<v Speaker 1>phill the market gaps and emerging economies places like that. Now,

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<v Speaker 1>I think over the years, people who think the exce

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<v Speaker 1>and Bank isn't worth it isn't needed. Maybe I should

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<v Speaker 1>say is that this is a globalized world. Small even

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<v Speaker 1>small and medium businesses are exporting much more than they

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<v Speaker 1>used to, not just the big ones. But as you

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<v Speaker 1>get ready to release your Competitiveness Reports Summary for twenty fifteen,

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<v Speaker 1>you have some some factoids that I think paint a

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<v Speaker 1>somewhat different picture. You say, for example, that export credit

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<v Speaker 1>agencies are much more important now and finding financing exports

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<v Speaker 1>for large pro projects in emerging markets, and that foreign

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<v Speaker 1>e c a s are getting a lot more aggressive

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<v Speaker 1>on behalf of their exporters. And I guess that's your

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<v Speaker 1>argument for the U S and two. Well, right now,

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<v Speaker 1>you know, when we look at global growth, global growth

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<v Speaker 1>is slowing. One of the key drivers of growth around

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<v Speaker 1>the world, not just in the United States, but his exports.

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<v Speaker 1>You see monetary policy as somewhat run its course. It's

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<v Speaker 1>hard to do fiscal stimulus, not just in the US

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<v Speaker 1>but elsewhere. So more and more countries are turning to

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<v Speaker 1>exports to drive their economy and drive job growth, and

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<v Speaker 1>hence it's far more competitive and much tougher and much

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<v Speaker 1>more competitive environment for US companies competing. There eight five

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<v Speaker 1>export credit agencies in sixty seven countries around the world,

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<v Speaker 1>and yet in last year more than sevent of medium

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<v Speaker 1>and long term export credit support fell outside the o

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<v Speaker 1>e c D arrangement. Sure, let me brief with the

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<v Speaker 1>o e c D. The Organization for Economic Corporation Development

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<v Speaker 1>sets the rules of the road. It's a transparent system

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<v Speaker 1>that says if a government follows those rules. It is

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<v Speaker 1>allowed under the w t O, the World Trade Organization,

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<v Speaker 1>and for many years that governed how governments supported their exporters.

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<v Speaker 1>But with the rise of China and the rise of

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<v Speaker 1>some other Asian countries, but particularly China, UM they fall

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<v Speaker 1>outside of the rules and that makes it much more

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<v Speaker 1>competitive for U S companies try and compete so we

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<v Speaker 1>get our fair share. China, as you point out, responsible

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<v Speaker 1>for ten times more export financing than the US, up

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<v Speaker 1>from eight times last year. And of course, you know

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<v Speaker 1>China has taken advantage of so many aspects of world trade,

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<v Speaker 1>and trade with the US helped hollow out our manufacturing.

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<v Speaker 1>You know. Uh so, I guess that would be another

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<v Speaker 1>reason why you say that we've got to step up

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<v Speaker 1>and do sending and you need more support. Well, you know,

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<v Speaker 1>a little over a dozen of years years ago, Kathleen,

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<v Speaker 1>we were the largest single export in the entire world.

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<v Speaker 1>We are number two today, number two to China. I

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<v Speaker 1>believe there's no reason looking in American innovation and products

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<v Speaker 1>and quality, we can't be number one again. But companies

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<v Speaker 1>need the tools. XM Bank is one of those tools.

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<v Speaker 1>We can't rely on trade sanctions alone to drive our economy.

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<v Speaker 1>So why does the U. S. Senator richarch shall Bey,

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<v Speaker 1>Republican from Alabama, once a bank supporter UH, block the

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<v Speaker 1>renewal of the regulations the go ahead that you need

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<v Speaker 1>to move ahead, and it's been almost a year that

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<v Speaker 1>you've had to pull back. Well, probably should ask Chairman

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<v Speaker 1>Shelby that directly. I would say that let's remember, two

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<v Speaker 1>thirds of the Senate voted for XM bank h A

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<v Speaker 1>overwhelming of the House, including a majority of all the

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<v Speaker 1>Republicans of the House, voted for it. So it is

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<v Speaker 1>quizzical why Senator Shelby has not had a hearing so

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<v Speaker 1>that we can evaluate the nominated the board. And let

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<v Speaker 1>me just add the nominee was recommended to President Obama

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<v Speaker 1>by Mitch McConnell, the Republican leader, and it's a Republican

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<v Speaker 1>seat on our board. Do you cost us taxpyer money?

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<v Speaker 1>We actually make money. Last year we sent four hundred

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<v Speaker 1>thirty million dollars to the taxpayers, UH, and since President

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<v Speaker 1>Obama was elected, it's north of two billion dollars we

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<v Speaker 1>have sent to the taxpayers. Essentially, that's the profit we

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<v Speaker 1>make and that even the Wall Streetjournal refers to appress

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<v Speaker 1>the profit we make. That we send to the Treasury.

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<v Speaker 1>So what is your message to Senator Shelby, What is

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<v Speaker 1>your message to the American people? Who I don't know

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<v Speaker 1>what what American people can do about this, except maybe

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<v Speaker 1>the the citizens of Richard Shelby stayed in voting amount

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<v Speaker 1>of office. He's a very powerful senator. That doesn't look

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<v Speaker 1>likely to happen anytime soon. Well, the key thing is

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<v Speaker 1>we're talking about us jobs and last year we supported

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<v Speaker 1>a hundred nine thousand jobs. That numbers down this year

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<v Speaker 1>less that we're doing less than half the business of

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<v Speaker 1>a year ago. Uh um. President Obama recently met with

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<v Speaker 1>Prime Minister Moti. We're looking at a nuclear power facility

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<v Speaker 1>for India. Without the X and Bank, that project will

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<v Speaker 1>not go forward and those jobs will go elsewhere, not

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<v Speaker 1>to the land state. So we're talking about real jobs

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<v Speaker 1>in small communities around this country that are in jeopardy.

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<v Speaker 1>So many of them have to do with manufacturing, a

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<v Speaker 1>very beaten up sector, but one that has been coming back.

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<v Speaker 1>Wilfred Hawkberg, we hope to have you back. We're gonna

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<v Speaker 1>follow us very closely. It's a fascinating story. Chairman and

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<v Speaker 1>President of the Export Import Bank of the United states

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<v Speaker 1>they were competitive. Survey out tomorrow. I'm Kathleen Hayes. Thanks

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<v Speaker 1>for joining us today on taking Stock. This is Bloomberg Radio.

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<v Speaker 1>Coming up, Bloomberg Law, a look at the pressing legal

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<v Speaker 1>issues of the day how they affect businesses, consumers, and

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<v Speaker 1>elected officials. This is Bloomberg Radio.