WEBVTT - Cantor Fitzgerald CEO Howard Lutnick Talks Market Performance

0:00:00.120 --> 0:00:03.239
<v Speaker 1>Joining us now is Howard Lutnik, Chairman and CEO of BGC,

0:00:03.480 --> 0:00:07.240
<v Speaker 1>also chairman of Cantor Fitzgerald. And let's talk about performance

0:00:07.320 --> 0:00:10.319
<v Speaker 1>for a second here, BGC. You looked at equities, it

0:00:10.360 --> 0:00:13.160
<v Speaker 1>was down, every other business really was on the rise.

0:00:13.600 --> 0:00:15.600
<v Speaker 1>What was driving performance and where are you going to

0:00:15.600 --> 0:00:17.239
<v Speaker 1>be making most of your money from this year?

0:00:17.800 --> 0:00:21.599
<v Speaker 2>So BGC for years was in the market where there

0:00:21.640 --> 0:00:24.360
<v Speaker 2>was zero interest rates, and so people sort of forgot

0:00:24.400 --> 0:00:28.080
<v Speaker 2>about us. We're the world's most valuable wholesaler. So everything

0:00:28.080 --> 0:00:30.000
<v Speaker 2>in the world that you guys talk about in trade,

0:00:30.240 --> 0:00:33.640
<v Speaker 2>we're the wholesale market. Like who does Goldman Sachs trade?

0:00:33.760 --> 0:00:36.320
<v Speaker 2>Who does JP Morgan call when they want to do

0:00:36.360 --> 0:00:40.120
<v Speaker 2>their trades? They called BGC where the wholesaler. So with

0:00:40.280 --> 0:00:43.680
<v Speaker 2>interest rates back, our stock was up ninety percent last year,

0:00:43.960 --> 0:00:47.479
<v Speaker 2>up thirty percent this year so far, and our business

0:00:47.560 --> 0:00:50.519
<v Speaker 2>is on fire. Revenues up eleven point seven profits up

0:00:50.600 --> 0:00:52.040
<v Speaker 2>nineteen point two percent.

0:00:52.400 --> 0:00:54.200
<v Speaker 3>And the most exciting.

0:00:53.800 --> 0:00:58.400
<v Speaker 2>Thing we're launching in September pretty soon, a competitor to

0:00:58.560 --> 0:01:02.640
<v Speaker 2>the awesome monopoly the Chicago Merchantolic Exchange. They do one

0:01:02.760 --> 0:01:06.720
<v Speaker 2>hundred percent of futures in America and now FMX, which

0:01:06.760 --> 0:01:09.480
<v Speaker 2>is run by the largest wholesale in the world. We

0:01:09.560 --> 0:01:13.840
<v Speaker 2>brought in some partners, ten of ten of the largest

0:01:14.000 --> 0:01:18.280
<v Speaker 2>banks and trading firms in the world, JP, Morgan, Goldman, Sachs, Citadel,

0:01:18.440 --> 0:01:21.760
<v Speaker 2>you name the list, they're all on the list. In September,

0:01:21.840 --> 0:01:24.600
<v Speaker 2>we bring competition. So I think our stock's going to

0:01:24.640 --> 0:01:26.800
<v Speaker 2>be fire. Obviously, we're going to try to do a

0:01:26.920 --> 0:01:29.520
<v Speaker 2>ninety percent again, right, we got some work to do

0:01:29.560 --> 0:01:31.120
<v Speaker 2>in the last bunch of months.

0:01:31.280 --> 0:01:32.800
<v Speaker 3>Let's talk about that competition.

0:01:32.840 --> 0:01:35.720
<v Speaker 4>Because, of course, Terry Duffy of CMEA has had some

0:01:35.800 --> 0:01:38.760
<v Speaker 4>words for you, both on his earnings call and in

0:01:38.800 --> 0:01:40.920
<v Speaker 4>the media, and it was one of actually the first

0:01:41.000 --> 0:01:44.800
<v Speaker 4>question on your earnings call basically Terry Duffy criticizing you

0:01:44.959 --> 0:01:47.400
<v Speaker 4>clearing trades through LCH when it comes.

0:01:47.319 --> 0:01:48.920
<v Speaker 3>Specifically to treasuries.

0:01:48.960 --> 0:01:51.160
<v Speaker 4>We know that we've reported that you've struck a deal

0:01:51.200 --> 0:01:56.560
<v Speaker 4>with LCH rather to basically cross margin with treasuries. Do

0:01:56.600 --> 0:01:58.680
<v Speaker 4>you foresee any issues there?

0:01:59.320 --> 0:02:02.520
<v Speaker 2>No, That's what I found so fascinating. You've got the

0:02:02.600 --> 0:02:05.800
<v Speaker 2>CEO of the Chicago Market dog changehere. It's seventy billion

0:02:05.840 --> 0:02:10.840
<v Speaker 2>dollars right with the monopoly on the only exchange doing futures.

0:02:11.280 --> 0:02:14.600
<v Speaker 2>Now here we come with our competition and we are

0:02:14.639 --> 0:02:17.560
<v Speaker 2>just in his head. Oh my gosh for him to talk.

0:02:17.639 --> 0:02:19.880
<v Speaker 2>He said, he said nasty things about me. I mean,

0:02:19.919 --> 0:02:21.880
<v Speaker 2>imagine saying nasty things about the guy who's going to

0:02:22.160 --> 0:02:22.800
<v Speaker 2>compete with you.

0:02:22.840 --> 0:02:24.480
<v Speaker 1>Well, he says, he's not going to sit by and

0:02:24.520 --> 0:02:26.280
<v Speaker 1>watch who takes share. At the end of the day,

0:02:26.320 --> 0:02:28.200
<v Speaker 1>I think Katie and I are both wondering, have you

0:02:28.240 --> 0:02:28.760
<v Speaker 1>talked to him?

0:02:29.000 --> 0:02:30.679
<v Speaker 2>Well, what's he gonna do? Do a dance while I

0:02:30.760 --> 0:02:32.880
<v Speaker 2>take share? I mean, look, he's got one hundred percent

0:02:32.919 --> 0:02:35.280
<v Speaker 2>market share. There's no chance we don't take share. And

0:02:35.280 --> 0:02:38.600
<v Speaker 2>we're going to take serious share because we've got partners

0:02:38.600 --> 0:02:41.280
<v Speaker 2>of all the big banks, all the big trading firms

0:02:41.320 --> 0:02:46.799
<v Speaker 2>are our partner. So LCCH clears interest rate swaps, right,

0:02:46.880 --> 0:02:50.520
<v Speaker 2>so dollar based interest rate swaps, so for futures are

0:02:50.560 --> 0:02:53.520
<v Speaker 2>really a future for swaps. So if you can do

0:02:53.560 --> 0:02:57.960
<v Speaker 2>both things together, it's really efficient, right because you're just

0:02:58.040 --> 0:03:00.680
<v Speaker 2>basically it's like stock few which you.

0:03:00.720 --> 0:03:03.760
<v Speaker 3>Talk about and stocks, right, they're good hits for each other.

0:03:04.080 --> 0:03:07.200
<v Speaker 2>That's what interest rate swaps and swap futures or SOFA

0:03:07.280 --> 0:03:11.440
<v Speaker 2>futures are. So we will have amazing cross margining opportunities,

0:03:11.680 --> 0:03:15.239
<v Speaker 2>and therefore we're going to bring this competition and investors

0:03:15.280 --> 0:03:20.040
<v Speaker 2>have not really understood how exciting that is within BGC's stock.

0:03:20.200 --> 0:03:21.959
<v Speaker 2>So I think what will happen is we're going to

0:03:22.040 --> 0:03:25.760
<v Speaker 2>launch in September. We're going to come out strong. But

0:03:26.160 --> 0:03:29.720
<v Speaker 2>it's a marathon. This is not sprint, and you know that.

0:03:30.600 --> 0:03:33.040
<v Speaker 1>Assume how much volume could you do in year one?

0:03:33.240 --> 0:03:35.200
<v Speaker 3>Well, I think year one we're going to do.

0:03:37.280 --> 0:03:40.920
<v Speaker 2>Our goal is to have the world record open interest,

0:03:41.080 --> 0:03:44.320
<v Speaker 2>meaning trades that are sort of parked at our exchange,

0:03:44.360 --> 0:03:46.600
<v Speaker 2>where investors are sticking it out with us. They're not

0:03:46.640 --> 0:03:49.160
<v Speaker 2>just coming and going, they're staying. We expect at the

0:03:49.240 --> 0:03:50.960
<v Speaker 2>end of the first year we will have the record

0:03:51.200 --> 0:03:54.560
<v Speaker 2>for the most open interest ever for a new exchange,

0:03:54.640 --> 0:03:57.520
<v Speaker 2>and that will bode incredibly well. So that's what I'm

0:03:57.560 --> 0:03:59.920
<v Speaker 2>looking forward to. That's the ribbon we're going to cut.

0:04:00.160 --> 0:04:03.320
<v Speaker 2>The most open interest ever for an exchange.

0:04:03.360 --> 0:04:05.240
<v Speaker 4>Well, we have that on record, so we'll have to

0:04:05.320 --> 0:04:06.840
<v Speaker 4>check in with you on that. App good with that,

0:04:07.280 --> 0:04:09.120
<v Speaker 4>But you mentioned the stock. I want to talk about

0:04:09.120 --> 0:04:11.480
<v Speaker 4>the stock because I was checking it's up eighty nine

0:04:11.560 --> 0:04:13.760
<v Speaker 4>percent over the past year. But you pointed out in

0:04:13.760 --> 0:04:16.360
<v Speaker 4>the earnings call that you only traded ten times earnings,

0:04:16.520 --> 0:04:18.880
<v Speaker 4>and you cited that as a reason why you're buying.

0:04:18.520 --> 0:04:20.400
<v Speaker 3>Back the stock. What do you think is a more

0:04:20.440 --> 0:04:23.160
<v Speaker 3>reasonable valuation. So we're a member of.

0:04:23.120 --> 0:04:25.159
<v Speaker 2>The S and P six hundred, which is sort of

0:04:25.160 --> 0:04:28.360
<v Speaker 2>like the mid cap stocks. We now, unfortunately, we've got

0:04:28.400 --> 0:04:30.520
<v Speaker 2>a long way to go to catching Vidia, you know,

0:04:30.680 --> 0:04:33.960
<v Speaker 2>instead of for three trillion sort of world. But so

0:04:34.839 --> 0:04:38.800
<v Speaker 2>you know, our stock is eleven percent revenue growth, ten

0:04:38.839 --> 0:04:41.320
<v Speaker 2>percent for the year, right, just had eleven this quarter

0:04:41.640 --> 0:04:45.480
<v Speaker 2>and nineteen percent profit growth. If you compare that to

0:04:45.520 --> 0:04:48.640
<v Speaker 2>other SMP six hundred stocks, they trade at twenty five

0:04:48.680 --> 0:04:51.720
<v Speaker 2>to thirty times, and we're trading at ten times. And

0:04:51.760 --> 0:04:53.680
<v Speaker 2>you say, okay, other stocks in the S and P

0:04:53.800 --> 0:04:57.440
<v Speaker 2>six hundred, and I said, well, those that trade ten

0:04:57.520 --> 0:05:01.760
<v Speaker 2>times earnings have zero revenue growth. So I'm trading like

0:05:01.760 --> 0:05:05.599
<v Speaker 2>a zero revenue growth company when we're really eleven percent

0:05:05.680 --> 0:05:08.239
<v Speaker 2>top line revenue. And the reason for that is because

0:05:08.279 --> 0:05:10.440
<v Speaker 2>all those years of zero interest rates, people sort of

0:05:10.480 --> 0:05:12.280
<v Speaker 2>forgot what a great company we are. You know, I

0:05:12.360 --> 0:05:15.359
<v Speaker 2>used to describe us like Jillette, you know, every morning,

0:05:15.800 --> 0:05:17.719
<v Speaker 2>all the men in the earth wake up with a

0:05:17.760 --> 0:05:20.400
<v Speaker 2>beard and some of them need to shave, not meaning much,

0:05:20.760 --> 0:05:22.119
<v Speaker 2>but some need to shave.

0:05:22.440 --> 0:05:24.799
<v Speaker 3>Bonds always, there's just going to be more issued.

0:05:24.920 --> 0:05:26.800
<v Speaker 2>If you're in the bond business, I promise you next

0:05:26.880 --> 0:05:28.400
<v Speaker 2>year there'll just be more to trade.

0:05:28.520 --> 0:05:29.640
<v Speaker 3>Good business for you as well.

0:05:29.680 --> 0:05:32.440
<v Speaker 1>Speaking of trading, you were bang on when it came

0:05:32.520 --> 0:05:34.960
<v Speaker 1>to kind of seeing the direction of interest rate cuts

0:05:34.960 --> 0:05:36.920
<v Speaker 1>this year. You never really thought we were going to

0:05:36.960 --> 0:05:40.080
<v Speaker 1>get five or six. You said September was when you

0:05:40.120 --> 0:05:42.200
<v Speaker 1>would see one. Now the market is aligned with what

0:05:42.240 --> 0:05:43.360
<v Speaker 1>you had said many months ago.

0:05:43.360 --> 0:05:45.080
<v Speaker 3>How about that? Right? I said it in December.

0:05:45.160 --> 0:05:48.120
<v Speaker 2>Now the whole world believes they're not going to cut today,

0:05:48.440 --> 0:05:48.839
<v Speaker 2>and they're.

0:05:48.720 --> 0:05:51.000
<v Speaker 3>Going to cut September. So they're basically we're saying, yeah,

0:05:51.040 --> 0:05:52.880
<v Speaker 3>what about what about next year?

0:05:53.000 --> 0:05:57.080
<v Speaker 1>You think about the pace of cuts moving past September?

0:05:57.440 --> 0:06:00.120
<v Speaker 1>The election coming up, a lot of people are thinking

0:06:00.200 --> 0:06:02.960
<v Speaker 1>about what it would mean for Trump versus Kamala Harris

0:06:03.000 --> 0:06:05.960
<v Speaker 1>to take the office, whether those tariff policies will be

0:06:06.000 --> 0:06:09.000
<v Speaker 1>inflationary going into next year. How much room will there

0:06:09.040 --> 0:06:11.200
<v Speaker 1>really be to cut rates going into twenty twenty five.

0:06:11.400 --> 0:06:15.480
<v Speaker 2>I think both candidates both would like to cut rates,

0:06:15.680 --> 0:06:16.920
<v Speaker 2>so that's good for the bond business.

0:06:17.000 --> 0:06:18.880
<v Speaker 3>Right, when you have everybody.

0:06:18.400 --> 0:06:20.800
<v Speaker 2>Running, you have one hundred percent coverage, you have people

0:06:21.040 --> 0:06:24.200
<v Speaker 2>in politics want to cut rates, right, So I think

0:06:24.200 --> 0:06:27.000
<v Speaker 2>we get a September cut. I think that's in the

0:06:27.440 --> 0:06:30.960
<v Speaker 2>cards for sure. And you start Germany had negative growth,

0:06:31.440 --> 0:06:33.760
<v Speaker 2>I mean negative growth from such a big economy like

0:06:33.800 --> 0:06:36.400
<v Speaker 2>that is going to drive all the central bankers are

0:06:36.440 --> 0:06:39.039
<v Speaker 2>now looking to cut, all right, So it's really that's

0:06:39.080 --> 0:06:41.480
<v Speaker 2>sort of the word out there now cut. So September.

0:06:41.600 --> 0:06:44.880
<v Speaker 2>I think the market's building in a one hundred percent

0:06:44.920 --> 0:06:46.040
<v Speaker 2>probability of a cut.

0:06:46.080 --> 0:06:48.560
<v Speaker 3>Now, how about that. That's a good percentage itself, sort

0:06:48.600 --> 0:06:48.800
<v Speaker 3>of it.

0:06:49.120 --> 0:06:51.560
<v Speaker 2>I think there'll be some cuts next year. But you

0:06:51.720 --> 0:06:55.320
<v Speaker 2>have to remember zero is just not a thing. Okay,

0:06:55.520 --> 0:06:57.880
<v Speaker 2>it was a manufactured thing to get us out of

0:06:57.920 --> 0:07:01.640
<v Speaker 2>the Great financial crisis, right, So it's just and the pandemic.

0:07:01.720 --> 0:07:04.599
<v Speaker 3>It's just not a thing. So I think a couple

0:07:04.640 --> 0:07:05.760
<v Speaker 3>of cuts.

0:07:06.080 --> 0:07:09.920
<v Speaker 2>Maybe in the mid fours is a reasonable rate for

0:07:10.040 --> 0:07:12.320
<v Speaker 2>us to live and breathe in. So I think two

0:07:12.400 --> 0:07:15.960
<v Speaker 2>or three cuts next year. I'd say two cuts next year,

0:07:16.200 --> 0:07:19.480
<v Speaker 2>one in September. And that's the whole thing. It's not

0:07:20.160 --> 0:07:22.600
<v Speaker 2>unfortunately it's not that exciting. It's not seven cuts and

0:07:22.640 --> 0:07:23.960
<v Speaker 2>then seven hikes and all.

0:07:23.800 --> 0:07:24.680
<v Speaker 4>The way back to zero.

0:07:24.720 --> 0:07:27.280
<v Speaker 3>It's just not no chance, zero chance. We have a

0:07:27.320 --> 0:07:29.119
<v Speaker 3>good economy, we have good interest rates.

0:07:29.280 --> 0:07:32.760
<v Speaker 2>For the Fed, it's their tool, right if they at zero,

0:07:32.880 --> 0:07:35.240
<v Speaker 2>what tool do you have that you can't?

0:07:35.440 --> 0:07:38.200
<v Speaker 3>What did they do? Quantitative easing? You're like, how is

0:07:38.240 --> 0:07:40.400
<v Speaker 3>that even on the menu? What they buy all the

0:07:40.440 --> 0:07:41.400
<v Speaker 3>bonds of America?

0:07:41.520 --> 0:07:44.680
<v Speaker 2>But you have to remember, as the FED runs off

0:07:44.720 --> 0:07:48.840
<v Speaker 2>its balance sheet, Okay, that means I'm not buying bonds

0:07:49.040 --> 0:07:49.360
<v Speaker 2>you are.

0:07:50.200 --> 0:07:52.000
<v Speaker 3>That's tightening tightening.

0:07:52.040 --> 0:07:55.640
<v Speaker 2>It's like it's cutting you know, it's it's cutting off

0:07:55.680 --> 0:07:58.040
<v Speaker 2>your credit card for the economy.

0:07:58.120 --> 0:07:59.880
<v Speaker 1>So, you know, if you think about the path forward,

0:08:00.240 --> 0:08:02.000
<v Speaker 1>a lot of people are waiting for stability in the

0:08:02.040 --> 0:08:05.520
<v Speaker 1>markets to finally see more IPOs. Candor Fitzgerald, big underwriter

0:08:05.680 --> 0:08:08.440
<v Speaker 1>in the IPO market, what's your expectation for the year

0:08:08.480 --> 0:08:11.920
<v Speaker 1>ahead and do you see bigger or smaller companies really

0:08:12.040 --> 0:08:15.240
<v Speaker 1>coming to fruition here? It's really a market that is

0:08:15.480 --> 0:08:17.280
<v Speaker 1>hoping for that small cap rebound.

0:08:17.800 --> 0:08:19.560
<v Speaker 3>So canter is in a really good place.

0:08:19.600 --> 0:08:22.720
<v Speaker 2>I mean we're third so far this year, and it's

0:08:22.840 --> 0:08:25.080
<v Speaker 2>you know, we're going on, you know, going into August,

0:08:25.080 --> 0:08:25.720
<v Speaker 2>so we're doing it.

0:08:26.080 --> 0:08:27.280
<v Speaker 3>We're in a really good spot.

0:08:27.560 --> 0:08:30.520
<v Speaker 2>Caner's got a great healthcare franchise. Now we don't do

0:08:30.560 --> 0:08:33.800
<v Speaker 2>the big giant companies. We do the small, smaller companies

0:08:33.800 --> 0:08:36.240
<v Speaker 2>where we focus on raising them for phase two and

0:08:36.280 --> 0:08:39.679
<v Speaker 2>phase three drugs sort of. The one of my favorite

0:08:39.720 --> 0:08:42.200
<v Speaker 2>days of the year is our healthcare conference because we're

0:08:42.200 --> 0:08:45.120
<v Speaker 2>not sort of pumping up big companies. This is where

0:08:45.200 --> 0:08:48.800
<v Speaker 2>all of the new developments in biotech and biopharma present

0:08:48.840 --> 0:08:51.320
<v Speaker 2>themselves and it's so fun to see the things that

0:08:51.360 --> 0:08:53.760
<v Speaker 2>are happening and we're helping them raise money. So our

0:08:53.800 --> 0:08:55.640
<v Speaker 2>IPO business is very successful.

0:08:55.800 --> 0:08:56.280
<v Speaker 3>I think the.

0:08:56.240 --> 0:08:58.520
<v Speaker 2>Market twenty twenty five, you're going to see the IPO

0:08:58.559 --> 0:09:01.120
<v Speaker 2>market open, and you're going to be talking about companies

0:09:01.360 --> 0:09:03.640
<v Speaker 2>and on this show all day, you're just gonna have

0:09:03.960 --> 0:09:07.240
<v Speaker 2>fire talking about because there's so much pent up demand,

0:09:07.679 --> 0:09:10.560
<v Speaker 2>so many companies want to go right, and as the

0:09:10.600 --> 0:09:13.600
<v Speaker 2>market starts to crack, which we're feeling now right, they're

0:09:13.600 --> 0:09:14.240
<v Speaker 2>gonna start coming.

0:09:14.240 --> 0:09:15.000
<v Speaker 3>You're gonna start.

0:09:14.800 --> 0:09:16.959
<v Speaker 2>Seeing three a week, and you're gonna start seeing four

0:09:16.960 --> 0:09:17.920
<v Speaker 2>a week and next year.

0:09:17.920 --> 0:09:19.720
<v Speaker 3>By the middle of the next year, five a week.

0:09:19.760 --> 0:09:21.880
<v Speaker 2>They're gonna be coming hot and heavy, and you guys

0:09:21.880 --> 0:09:23.480
<v Speaker 2>are gonna be awful busy on the show.

0:09:23.600 --> 0:09:24.319
<v Speaker 3>Well, I know that.

0:09:24.320 --> 0:09:28.839
<v Speaker 4>You're hosting a dinner on August second, basically asking attendees

0:09:28.880 --> 0:09:32.320
<v Speaker 4>to pay twenty five thousand dollars to attend, and even

0:09:32.320 --> 0:09:34.040
<v Speaker 4>more so if they want, of course a photo.

0:09:34.160 --> 0:09:35.920
<v Speaker 3>It's gonna be a great chick out. It'll be really

0:09:35.960 --> 0:09:36.680
<v Speaker 3>great chicken h.

0:09:38.559 --> 0:09:40.719
<v Speaker 4>But how much are you looking to raise here? Are

0:09:40.720 --> 0:09:42.559
<v Speaker 4>you trying to set any sort of record here when

0:09:42.559 --> 0:09:43.479
<v Speaker 4>it comes to fundraising.

0:09:43.600 --> 0:09:46.160
<v Speaker 2>I think we'll raise over ten million dollars for the evening,

0:09:46.520 --> 0:09:49.559
<v Speaker 2>and I mean, what an honor to have President Trump

0:09:49.559 --> 0:09:52.920
<v Speaker 2>come over the house. We've got really a great, great

0:09:52.960 --> 0:09:55.520
<v Speaker 2>crowd will come. I'll probably keep it to one hundred

0:09:55.520 --> 0:09:57.880
<v Speaker 2>people so because I don't want it to be too big,

0:09:57.960 --> 0:10:00.760
<v Speaker 2>and it's really gets to talk. He gets a meet

0:10:01.040 --> 0:10:04.480
<v Speaker 2>and he hosts a roundtable. So the biggest donors who

0:10:04.520 --> 0:10:06.960
<v Speaker 2>pay two hundred and fifty thousand sit at a dining

0:10:07.000 --> 0:10:09.160
<v Speaker 2>room table and spend a half hour just asking him

0:10:09.240 --> 0:10:12.400
<v Speaker 2>questions and talking. And you know he needs money, right.

0:10:12.440 --> 0:10:15.560
<v Speaker 2>It's a race now. It's a hot race now. And

0:10:15.960 --> 0:10:18.520
<v Speaker 2>you know Donald Trump needs the fundraising, and I'm trying

0:10:18.559 --> 0:10:19.439
<v Speaker 2>to help everywhere.

0:10:19.120 --> 0:10:20.319
<v Speaker 3>I can to that end.

0:10:20.400 --> 0:10:23.520
<v Speaker 1>You actually donated to the twenty sixteen Senate campaign for

0:10:23.640 --> 0:10:27.160
<v Speaker 1>Kamala Harris. How do you think her entrance into this

0:10:27.360 --> 0:10:28.440
<v Speaker 1>race changes the game?

0:10:28.600 --> 0:10:30.560
<v Speaker 2>Well, putting on me what my wife does is not

0:10:30.600 --> 0:10:31.120
<v Speaker 2>really fair.

0:10:31.240 --> 0:10:34.040
<v Speaker 3>So interesting.

0:10:35.120 --> 0:10:37.760
<v Speaker 2>No, there's a good balance in every marriage. There's a

0:10:37.760 --> 0:10:41.480
<v Speaker 2>good balance. But my wife actually has moved over to

0:10:41.600 --> 0:10:44.120
<v Speaker 2>Donald Trump, which is unusual for her because she says

0:10:44.240 --> 0:10:49.480
<v Speaker 2>Israel is her number one you know, her number one policy,

0:10:49.559 --> 0:10:50.200
<v Speaker 2>her number.

0:10:49.960 --> 0:10:51.200
<v Speaker 3>One issue, and she knows that.

0:10:51.240 --> 0:10:54.640
<v Speaker 2>Donald Trump literally sat down with my wife and told her,

0:10:54.760 --> 0:10:56.760
<v Speaker 2>I will be the best president for Israel. I will

0:10:56.800 --> 0:10:59.600
<v Speaker 2>protect Israel and take care of them. So you know,

0:11:00.200 --> 0:11:04.720
<v Speaker 2>in my house we have unit inmity around Donald Trump.

0:11:04.880 --> 0:11:08.920
<v Speaker 4>And of course you have big plans at Canter Fitzgerald

0:11:08.960 --> 0:11:11.240
<v Speaker 4>with FMX as well. But if Donald Trump were to win,

0:11:11.240 --> 0:11:13.480
<v Speaker 4>are you angling for a spot in the administration?

0:11:13.559 --> 0:11:14.240
<v Speaker 3>Would you serve?

0:11:15.040 --> 0:11:17.880
<v Speaker 2>You know, the rules are if the president asks you

0:11:17.960 --> 0:11:20.960
<v Speaker 2>to serve, you kind of have to say yes. I'd

0:11:21.040 --> 0:11:24.080
<v Speaker 2>rather help him with transition, you know, I'd rather help

0:11:24.800 --> 0:11:27.400
<v Speaker 2>make sure they put great people in the administration. I

0:11:27.400 --> 0:11:29.040
<v Speaker 2>mean That's the most important thing is you have the

0:11:29.080 --> 0:11:31.440
<v Speaker 2>people around you are smart and capable.

0:11:31.520 --> 0:11:33.439
<v Speaker 3>So I'm going to offer to help him there.

0:11:33.480 --> 0:11:35.200
<v Speaker 2>But if he asks, you got to do what the

0:11:35.200 --> 0:11:38.120
<v Speaker 2>president asks you to do. I'm in love with Running

0:11:38.120 --> 0:11:40.319
<v Speaker 2>Canter Fitzgerald and BGC though, I just want to be

0:11:40.360 --> 0:11:41.040
<v Speaker 2>crystal clear.

0:11:41.320 --> 0:11:43.160
<v Speaker 3>I love I want a little story time.

0:11:43.240 --> 0:11:45.760
<v Speaker 1>How did your relationship with Donald Trump develop and how

0:11:45.760 --> 0:11:48.160
<v Speaker 1>did you become such kind of a critical part of

0:11:48.160 --> 0:11:49.200
<v Speaker 1>this fundraising effort.

0:11:49.640 --> 0:11:51.880
<v Speaker 2>Well, I've known him for thirty years. I mean, when

0:11:51.880 --> 0:11:54.400
<v Speaker 2>you're in New York, I've known him for thirty years.

0:11:54.440 --> 0:11:56.640
<v Speaker 2>If you go back and look at the first season

0:11:56.760 --> 0:12:01.480
<v Speaker 2>of Celebrity Apprentice, I was a guest appearance, right, So,

0:12:01.520 --> 0:12:03.800
<v Speaker 2>I mean I've felt him a long time. This isn't

0:12:03.880 --> 0:12:07.040
<v Speaker 2>like politics, right, this is I've known him a long time.

0:12:07.280 --> 0:12:08.320
<v Speaker 3>He's extraordinary.

0:12:08.360 --> 0:12:12.880
<v Speaker 2>I went with him to a Minnesota rally, okay, and

0:12:13.160 --> 0:12:14.600
<v Speaker 2>you know, I didn't know what to expect. I've never

0:12:14.600 --> 0:12:17.000
<v Speaker 2>been to a rally with him. It's like going to

0:12:17.080 --> 0:12:20.520
<v Speaker 2>Mick Jagger without Mick Jagger to a rock concert. They're lining,

0:12:21.120 --> 0:12:24.960
<v Speaker 2>lining the streets, thousands of people lining the streets, fifteen

0:12:25.120 --> 0:12:29.679
<v Speaker 2>thousand people in the arena and twenty five thousand outside

0:12:29.720 --> 0:12:32.520
<v Speaker 2>watching on a jumbo Trump and you just can't You

0:12:32.600 --> 0:12:34.959
<v Speaker 2>just can't understand what that feels like. And then when

0:12:35.000 --> 0:12:37.440
<v Speaker 2>you see it, you're like, holy moly. So they let

0:12:37.520 --> 0:12:41.679
<v Speaker 2>me introduce jd Vance. So I walked out in this rally,

0:12:42.120 --> 0:12:43.960
<v Speaker 2>right and there's I mean, they're cheering.

0:12:44.040 --> 0:12:45.720
<v Speaker 3>It was a rock count. I thought, you know, a

0:12:45.760 --> 0:12:46.200
<v Speaker 3>guy like me.

0:12:46.240 --> 0:12:48.079
<v Speaker 2>Doesn't usually feel like a rock concert sort of guy.

0:12:48.120 --> 0:12:50.120
<v Speaker 1>Now, where do you worry about some of the comments

0:12:50.120 --> 0:12:53.240
<v Speaker 1>that Jade Vance has been making lately about childless women

0:12:53.280 --> 0:12:54.880
<v Speaker 1>and what it could mean for Trump's campaign?

0:12:55.559 --> 0:13:00.520
<v Speaker 2>I think the vice president quickly moves to behind the president.

0:13:00.840 --> 0:13:03.120
<v Speaker 2>You know, lots of things people talk about they try

0:13:03.160 --> 0:13:05.880
<v Speaker 2>to make the vice president something. But the vice president's

0:13:05.960 --> 0:13:09.880
<v Speaker 2>job is to strongly support the president of the United States.

0:13:09.640 --> 0:13:10.600
<v Speaker 3>That's their job.

0:13:10.920 --> 0:13:13.679
<v Speaker 4>So are you not then concerned about the speech he

0:13:13.720 --> 0:13:15.360
<v Speaker 4>gave it the R and C for example, which was

0:13:15.520 --> 0:13:16.920
<v Speaker 4>very anti Wall Street.

0:13:17.400 --> 0:13:20.760
<v Speaker 2>Well, I think he wants to bring He wants the

0:13:21.080 --> 0:13:24.319
<v Speaker 2>common people, right, the people on his neighborhood where he

0:13:24.360 --> 0:13:26.319
<v Speaker 2>grew up to feel that they've got a voice in

0:13:26.360 --> 0:13:29.640
<v Speaker 2>the White House, which I think is really important. Right,

0:13:29.760 --> 0:13:32.960
<v Speaker 2>And I think it will resonate with the people on

0:13:33.040 --> 0:13:33.600
<v Speaker 2>main Street.

0:13:33.640 --> 0:13:36.199
<v Speaker 3>But the fact is the only.

0:13:35.960 --> 0:13:38.480
<v Speaker 2>Policy that's going to matter is by the President of

0:13:38.480 --> 0:13:41.440
<v Speaker 2>the United States. For both parties, Whoever they pick is

0:13:41.440 --> 0:13:43.880
<v Speaker 2>a good running mate, is a smart person. There a

0:13:43.880 --> 0:13:46.200
<v Speaker 2>heartbeat away from the Oval Office, as we know. But

0:13:47.000 --> 0:13:49.320
<v Speaker 2>I mean, and Kamala was closer than most people.

0:13:50.520 --> 0:13:54.320
<v Speaker 1>The Trump trade in your view as somebody who knows him.

0:13:54.480 --> 0:13:58.439
<v Speaker 2>I think the Trump trade is a broadening of the base, right.

0:13:58.480 --> 0:14:00.480
<v Speaker 3>So what we've seen is this rally. He's been the

0:14:00.960 --> 0:14:02.640
<v Speaker 3>Magnificent seven right.

0:14:02.720 --> 0:14:05.560
<v Speaker 2>He's going to cut corporate taxes, which is a broad

0:14:05.640 --> 0:14:09.000
<v Speaker 2>base move. He's going to cut regulation, which is a

0:14:09.040 --> 0:14:11.600
<v Speaker 2>broad based move, and he's probably going to put on

0:14:11.679 --> 0:14:15.640
<v Speaker 2>tariffs on China, which isn't good for the Magnificent seven.

0:14:15.720 --> 0:14:17.680
<v Speaker 2>So I think what you've got is a constraining of

0:14:17.720 --> 0:14:21.760
<v Speaker 2>the Magnificent seven and a pounding up of the rest

0:14:21.920 --> 0:14:23.520
<v Speaker 2>of the market. So I think if you were going

0:14:23.560 --> 0:14:24.600
<v Speaker 2>to do a trade, it.

0:14:24.560 --> 0:14:27.800
<v Speaker 3>Would be long the broad base right.

0:14:27.680 --> 0:14:29.960
<v Speaker 2>Right against the Magnificent seven, which is sort of the

0:14:29.960 --> 0:14:32.440
<v Speaker 2>opposite of what we felt for the past year.

0:14:32.520 --> 0:14:35.000
<v Speaker 4>So Howard, somehow we only have a minute left with you.

0:14:35.000 --> 0:14:37.560
<v Speaker 4>You were with Donald Trump in Minnesota. You were also

0:14:37.600 --> 0:14:40.520
<v Speaker 4>with him in Nashville at that bitcoin conference announced that

0:14:40.560 --> 0:14:44.120
<v Speaker 4>Canter Fitzgerald announced a new multi billion dollar effort in

0:14:44.160 --> 0:14:47.240
<v Speaker 4>bitcoin financing. Can you give us any details on what

0:14:47.280 --> 0:14:48.760
<v Speaker 4>the potential timeline for that is?

0:14:49.080 --> 0:14:49.400
<v Speaker 3>Sure?

0:14:49.480 --> 0:14:54.080
<v Speaker 2>So you know securities markets, everybody finances securities and nobody

0:14:54.080 --> 0:14:57.800
<v Speaker 2>finances bitcoin. Bitcoin is market cap is over a trillion,

0:14:57.920 --> 0:15:01.240
<v Speaker 2>three hundred billion. So we've figured out how to do it,

0:15:01.320 --> 0:15:04.000
<v Speaker 2>how to custodian it will work with other custodians, but

0:15:04.040 --> 0:15:05.720
<v Speaker 2>they're going to have to work with us because we

0:15:05.800 --> 0:15:08.120
<v Speaker 2>have to control the bitcoin, can't let it get hacked.

0:15:08.400 --> 0:15:10.400
<v Speaker 2>And we're going to start lending on bitcoin. We're going

0:15:10.480 --> 0:15:12.840
<v Speaker 2>to start with two billion dollars of loans and then

0:15:12.840 --> 0:15:14.960
<v Speaker 2>we're going to go up in increments of two billion dollars.

0:15:15.040 --> 0:15:18.160
<v Speaker 2>So it'll be a huge business because it's a huge

0:15:18.280 --> 0:15:21.480
<v Speaker 2>asset and it's only bitcoin. We're only focused on bitcoin.

0:15:21.720 --> 0:15:25.440
<v Speaker 2>But with Canter Fitzgerald will be financing bitcoin. And I

0:15:25.440 --> 0:15:28.520
<v Speaker 2>think it's a fun business and it's a big asset class,

0:15:28.680 --> 0:15:29.360
<v Speaker 2>but it's more.

0:15:29.280 --> 0:15:32.160
<v Speaker 3>Like a commodity. People talk about it like it's a currency.

0:15:32.520 --> 0:15:34.880
<v Speaker 2>Get by bread with something that goes up and down,

0:15:35.200 --> 0:15:36.840
<v Speaker 2>so I think of it as a commodity.

0:15:37.000 --> 0:15:38.720
<v Speaker 3>Howard, I got a producer in my ear. We have

0:15:38.840 --> 0:15:39.320
<v Speaker 3>to have you.

0:15:39.320 --> 0:15:41.840
<v Speaker 4>Back very soon, maybe in September. Our thanks, of course

0:15:41.880 --> 0:15:44.880
<v Speaker 4>to Howard Lutnik. He is Chairman of Canter Fitzgerald