Speaker 1: Global business news twenty four hours a day. If Bloomberg
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Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.
Speaker 1: I'm Katherine Cowdery. Wall Street extended the rally, sending the
Speaker 1: SMP five foundered to its strongest two day climb in
Speaker 1: four months. Tension is easing over the impact of a
Speaker 1: UK exit from the European Union. Energy shares capped their
Speaker 1: best two days since Marches crewd jumped. Oil climbed after
Speaker 1: reports showed crude inventories dropped for a sixth week, while
Speaker 1: the dollar retreated. Among itst piers, the Dow Industrial Laverage
Speaker 1: climb two hundred eighty five points one point six percent
Speaker 1: to close at seventeen thousand, six hundred ninety four, The
Speaker 1: SMP five hunder game thirty five points one point seven
Speaker 1: percent to close at two thousand seventy and the NASTAC
Speaker 1: added eighty seven points one point nine percent to close
Speaker 1: at forty seven seventy nine. West Texas Intermedia crude oil
Speaker 1: up a dollar seventy three of barrel three point six
Speaker 1: percent to forty eight. Spot gold up three dollars thirty
Speaker 1: cents an ounced to thirty and a ten year treasury
Speaker 1: down eleven thirty seconds with the yield of one point
Speaker 1: five zero percent. And that's a Bloomberg business flash. You're
Speaker 1: listening to taking stock with pim Box and Kathleen Hayes
Speaker 1: on Bloomberg Radio. An exit x M Bank stalemate delayed
Speaker 1: some plane deliveries. That's according to Boeing, a headline that
Speaker 1: ran on the Bloomberg yesterday. Uh. In fact, Jackie Collins,
Speaker 1: writing in The New York Times, rites earlier in the
Speaker 1: week that Tomorrow Thursday is an ignominious anniversary for the
Speaker 1: government agency that helps finance foreigners purchases of American exports.
Speaker 1: Thanks to a single senator, it's been a full year
Speaker 1: that the eighty two year old Export Inport Bank could
Speaker 1: approve deals exceeding ten million dollars, a limit that rules
Speaker 1: out high dollar deals on airplanes, power generations, heavy equipment,
Speaker 1: and New Year actors. No wonder that Boeing has reported
Speaker 1: that news. Now, let's introduce a man who is the
Speaker 1: head of the x M Bank is here to talk
Speaker 1: to us about what's going on and what it means
Speaker 1: for exports from the United States. Fred Hawkbird Chairman and
Speaker 1: President of the Export Import Bank of the United States,
Speaker 1: joining me in studio. Thank you for coming in, Thanks
Speaker 1: for having me so. First of all, remind people what
Speaker 1: the excellent Bank is. It's not quite a hundred years old,
Speaker 1: but it's been around for a while, around for a while.
Speaker 1: The Export Inport Bank United States is a trade bank
Speaker 1: for the United States. We've had it since nineteen two.
Speaker 1: FDR started it. And the understanding that to create more jobs,
Speaker 1: we need to do more exporting and their risks and
Speaker 1: both real and imagine from exporting. So the x and
Speaker 1: Bank was created to support US jobs and we sell
Speaker 1: goods overseas, level the playing field with foreign competitors, and
Speaker 1: phill the market gaps and emerging economies places like that. Now,
Speaker 1: I think over the years, people who think the exce
Speaker 1: and Bank isn't worth it isn't needed. Maybe I should
Speaker 1: say is that this is a globalized world. Small even
Speaker 1: small and medium businesses are exporting much more than they
Speaker 1: used to, not just the big ones. But as you
Speaker 1: get ready to release your Competitiveness Reports Summary for twenty fifteen,
Speaker 1: you have some some factoids that I think paint a
Speaker 1: somewhat different picture. You say, for example, that export credit
Speaker 1: agencies are much more important now and finding financing exports
Speaker 1: for large pro projects in emerging markets, and that foreign
Speaker 1: e c a s are getting a lot more aggressive
Speaker 1: on behalf of their exporters. And I guess that's your
Speaker 1: argument for the U S and two. Well, right now,
Speaker 1: you know, when we look at global growth, global growth
Speaker 1: is slowing. One of the key drivers of growth around
Speaker 1: the world, not just in the United States, but his exports.
Speaker 1: You see monetary policy as somewhat run its course. It's
Speaker 1: hard to do fiscal stimulus, not just in the US
Speaker 1: but elsewhere. So more and more countries are turning to
Speaker 1: exports to drive their economy and drive job growth, and
Speaker 1: hence it's far more competitive and much tougher and much
Speaker 1: more competitive environment for US companies competing. There eight five
Speaker 1: export credit agencies in sixty seven countries around the world,
Speaker 1: and yet in last year more than sevent of medium
Speaker 1: and long term export credit support fell outside the o
Speaker 1: e c D arrangement. Sure, let me brief with the
Speaker 1: o e c D. The Organization for Economic Corporation Development
Speaker 1: sets the rules of the road. It's a transparent system
Speaker 1: that says if a government follows those rules. It is
Speaker 1: allowed under the w t O, the World Trade Organization,
Speaker 1: and for many years that governed how governments supported their exporters.
Speaker 1: But with the rise of China and the rise of
Speaker 1: some other Asian countries, but particularly China, UM they fall
Speaker 1: outside of the rules and that makes it much more
Speaker 1: competitive for U S companies try and compete so we
Speaker 1: get our fair share. China, as you point out, responsible
Speaker 1: for ten times more export financing than the US, up
Speaker 1: from eight times last year. And of course, you know
Speaker 1: China has taken advantage of so many aspects of world trade,
Speaker 1: and trade with the US helped hollow out our manufacturing.
Speaker 1: You know. Uh so, I guess that would be another
Speaker 1: reason why you say that we've got to step up
Speaker 1: and do sending and you need more support. Well, you know,
Speaker 1: a little over a dozen of years years ago, Kathleen,
Speaker 1: we were the largest single export in the entire world.
Speaker 1: We are number two today, number two to China. I
Speaker 1: believe there's no reason looking in American innovation and products
Speaker 1: and quality, we can't be number one again. But companies
Speaker 1: need the tools. XM Bank is one of those tools.
Speaker 1: We can't rely on trade sanctions alone to drive our economy.
Speaker 1: So why does the U. S. Senator richarch shall Bey,
Speaker 1: Republican from Alabama, once a bank supporter UH, block the
Speaker 1: renewal of the regulations the go ahead that you need
Speaker 1: to move ahead, and it's been almost a year that
Speaker 1: you've had to pull back. Well, probably should ask Chairman
Speaker 1: Shelby that directly. I would say that let's remember, two
Speaker 1: thirds of the Senate voted for XM bank h A
Speaker 1: overwhelming of the House, including a majority of all the
Speaker 1: Republicans of the House, voted for it. So it is
Speaker 1: quizzical why Senator Shelby has not had a hearing so
Speaker 1: that we can evaluate the nominated the board. And let
Speaker 1: me just add the nominee was recommended to President Obama
Speaker 1: by Mitch McConnell, the Republican leader, and it's a Republican
Speaker 1: seat on our board. Do you cost us taxpyer money?
Speaker 1: We actually make money. Last year we sent four hundred
Speaker 1: thirty million dollars to the taxpayers, UH, and since President
Speaker 1: Obama was elected, it's north of two billion dollars we
Speaker 1: have sent to the taxpayers. Essentially, that's the profit we
Speaker 1: make and that even the Wall Streetjournal refers to appress
Speaker 1: the profit we make. That we send to the Treasury.
Speaker 1: So what is your message to Senator Shelby, What is
Speaker 1: your message to the American people? Who I don't know
Speaker 1: what what American people can do about this, except maybe
Speaker 1: the the citizens of Richard Shelby stayed in voting amount
Speaker 1: of office. He's a very powerful senator. That doesn't look
Speaker 1: likely to happen anytime soon. Well, the key thing is
Speaker 1: we're talking about us jobs and last year we supported
Speaker 1: a hundred nine thousand jobs. That numbers down this year
Speaker 1: less that we're doing less than half the business of
Speaker 1: a year ago. Uh um. President Obama recently met with
Speaker 1: Prime Minister Moti. We're looking at a nuclear power facility
Speaker 1: for India. Without the X and Bank, that project will
Speaker 1: not go forward and those jobs will go elsewhere, not
Speaker 1: to the land state. So we're talking about real jobs
Speaker 1: in small communities around this country that are in jeopardy.
Speaker 1: So many of them have to do with manufacturing, a
Speaker 1: very beaten up sector, but one that has been coming back.
Speaker 1: Wilfred Hawkberg, we hope to have you back. We're gonna
Speaker 1: follow us very closely. It's a fascinating story. Chairman and
Speaker 1: President of the Export Import Bank of the United states
Speaker 1: they were competitive. Survey out tomorrow. I'm Kathleen Hayes. Thanks
Speaker 1: for joining us today on taking Stock. This is Bloomberg Radio.
Speaker 1: Coming up, Bloomberg Law, a look at the pressing legal
Speaker 1: issues of the day how they affect businesses, consumers, and
Speaker 1: elected officials. This is Bloomberg Radio.