WEBVTT - UK’s Johnson Loses Vote to Fast-Track Brexit 0:00:00.120 --> 0:00:03.000 The vote is underway in the UK Parliament and Carol 0:00:03.040 --> 0:00:06.080 will bring you those results live when they happen. We're 0:00:06.080 --> 0:00:08.119 also going to catch up with the CEO of sin 0:00:08.240 --> 0:00:12.560 Genta making a bold move into the world of sustainability. 0:00:12.680 --> 0:00:14.840 It feels like putting his money where his mouth is 0:00:14.880 --> 0:00:17.919 here exactly so we'll hear from him. Is also his 0:00:17.960 --> 0:00:21.360 chief sustainability officer. We've got fifty companies to watch. It's 0:00:21.400 --> 0:00:24.599 in the upcoming issue of Bloomberg Business Weekend. Under Armoured 0:00:24.640 --> 0:00:28.320 Kevin plank Out s CEO, not totally leaving the company 0:00:28.360 --> 0:00:31.080 he founded, but this is a big change from the 0:00:31.080 --> 0:00:33.760 company that he has been running for more than two decades. 0:00:33.800 --> 0:00:35.839 And then we're gonna talk about t I earnings. I 0:00:35.840 --> 0:00:38.480 think it's important to focus on that chip sector. Yeah, 0:00:38.479 --> 0:00:41.400 absolutely so a lot to get to coming up. So 0:00:41.440 --> 0:00:43.360 how do we make sense of all of this going 0:00:43.400 --> 0:00:46.400 on at once? You heard Charlie talk about the market 0:00:46.479 --> 0:00:49.920 reaction to all these headlines headline bingo once again. Today, 0:00:50.400 --> 0:00:53.760 let's it turn to our boys to set the business 0:00:53.800 --> 0:00:56.440 week agenda. Joe Wis Andhal Markets editor for Bloomberg, the 0:00:56.480 --> 0:00:58.480 co host of What You Miss That's coming up at 0:00:58.480 --> 0:01:00.920 four pm Wall Street Time on bat the and Dave Wilson, 0:01:01.200 --> 0:01:04.520 Stocks Editor, author of the chart and the stock of 0:01:04.680 --> 0:01:07.240 the Day. So, Dave, I want to start with you, 0:01:07.840 --> 0:01:11.560 what's the one thing you're looking at amid these the 0:01:11.600 --> 0:01:14.760 sea of headlines. Well, just such a mixed bag when 0:01:14.760 --> 0:01:18.120 it comes to earnings today and you know, not something 0:01:18.160 --> 0:01:21.440 that we've seen up to now in earning season. And 0:01:21.520 --> 0:01:24.520 maybe the easiest way to kind of illustrate that is 0:01:24.560 --> 0:01:27.160 to look at the four companies in the Dow Jones 0:01:27.200 --> 0:01:30.680 Industrial Average and reported results before the opening bell. You 0:01:30.800 --> 0:01:34.199 got Procter and Gamble their fiscal first quarter results beating 0:01:34.240 --> 0:01:37.160 analysts average estimates in Bloomberg survey and that stocks up 0:01:37.200 --> 0:01:40.560 more than three percent. You've got United Technology coming out 0:01:40.560 --> 0:01:43.520 of the head of projections for the third quarter, raising 0:01:43.560 --> 0:01:46.000 their full year forecast, which by the way, P and 0:01:46.040 --> 0:01:49.480 G did as well. United Technologies up two point three percent. 0:01:49.520 --> 0:01:52.320 And on the other hand, yeah, McDonald's down four and 0:01:52.360 --> 0:01:55.600 a half percent. There were a US results really uh 0:01:55.800 --> 0:01:59.200 the source of that kind of decline because they came 0:01:59.240 --> 0:02:01.040 up short on the top oup line and bottom line 0:02:01.240 --> 0:02:03.640 in the US sales just didn't measure up to what 0:02:03.680 --> 0:02:06.880 people were looking for and Travelers down seven point four 0:02:06.960 --> 0:02:10.320 percent their third quarter earnings well below projections, are talking 0:02:10.360 --> 0:02:13.440 about legal costs, are talking about weather related losses. But 0:02:13.919 --> 0:02:17.399 that contrast really shows you what's going on in terms 0:02:17.440 --> 0:02:20.000 of earnings and why stocks really have no direction if 0:02:20.000 --> 0:02:22.280 you look at the S and P five at the moment. 0:02:22.400 --> 0:02:24.119 All right, let's bring in Joe. Why is it thought, Joe, 0:02:24.120 --> 0:02:26.480 what's the one thing you think, uh investors need to 0:02:26.560 --> 0:02:30.240 know on this Tuesday? Well, it's kind of quiet, but 0:02:30.360 --> 0:02:32.400 you know, right now as we're talking, we're about to 0:02:32.440 --> 0:02:36.080 get the thick of Brexit news. And I do think 0:02:36.120 --> 0:02:38.400 that one of the weirder things that's happened over the 0:02:38.480 --> 0:02:41.160 last couple of weeks is that Brexit news is not 0:02:41.480 --> 0:02:45.720 has no longer been confined to UK and the Brexit 0:02:45.760 --> 0:02:49.480 news has moved global markets. So I am talking to 0:02:49.520 --> 0:02:53.320 you but also with one eye looking at our coverage 0:02:53.400 --> 0:02:55.760 because this is now, at least for for the moment, 0:02:55.800 --> 0:02:58.200 a macro story. Yeah, no doubt about it. And I 0:02:58.240 --> 0:03:00.440 feel like, you know, investors continue to deal with so 0:03:00.480 --> 0:03:02.359 many different macro stories. It's something we talked about in 0:03:02.360 --> 0:03:05.080 the magazine this week and really question, you know, can 0:03:05.120 --> 0:03:07.280 we once again kind of climb this wall of worry 0:03:07.320 --> 0:03:09.800 when it comes to the trade. All right, Joe Wisenthal, 0:03:09.840 --> 0:03:12.200 thank you so much. Markets thattor Bloomberg News co host 0:03:12.240 --> 0:03:14.040 of would you miss Find That? At four pm Wall 0:03:14.040 --> 0:03:16.440 Street Time on Bloomberg TV, Davi Wilson. He's going to 0:03:16.520 --> 0:03:17.880 be back a little bit later on with his chart 0:03:17.919 --> 0:03:19.560 and stock of the day. He's our stock sedator at 0:03:19.560 --> 0:03:21.959 Bloomberg News. Let's get a check on world of national 0:03:21.960 --> 0:03:25.400 news headlines for that. Let's turn things over to Bob Moon, Carol, 0:03:25.480 --> 0:03:28.320 thank you. Senate Majority Leader Mitch McConnell put the brakes 0:03:28.360 --> 0:03:31.440 on a move to impose sanctions on Turkey over its 0:03:31.440 --> 0:03:36.080 incursion into Syria. Bloomberg's earv Chapman reports from Capitol Hill. 0:03:36.200 --> 0:03:39.400 The Condell introduced his own resolution that calls on President 0:03:39.440 --> 0:03:42.160 Trump to end the draw down of US forces from 0:03:42.200 --> 0:03:46.360 the area and rethink his invitation for Turkey's president or 0:03:46.440 --> 0:03:49.280 to want to visit the White House. Sanctions may play 0:03:49.320 --> 0:03:52.360 an important role, and I'm open to the Sunate considering them, 0:03:52.520 --> 0:03:55.120 but we need to thank extremely carefully before we employ 0:03:55.240 --> 0:03:58.520 the same tools against a democratic NATO allah that we 0:03:58.560 --> 0:04:02.200 would against the worst row State Committees of both houses 0:04:02.200 --> 0:04:05.720 are holding hearings this week on the President's unexpected decision 0:04:05.920 --> 0:04:08.360 to pull the United States out of its alliance with 0:04:08.440 --> 0:04:12.000 the Syrian curred forces that have fought the Islamic State. 0:04:12.400 --> 0:04:15.600 On Capitol Hill or chap and Bloomberg Radio, the Congressional 0:04:15.640 --> 0:04:20.279 Black Caucus is condemning President Trump's comparison of impeachment to lynching. 0:04:20.800 --> 0:04:24.840 Democratic Karen Bass of California, the group's chairwoman, called lynching 0:04:24.880 --> 0:04:28.160 a horrific stain on our country's history and said it's 0:04:28.200 --> 0:04:32.080 wrong to compare the systematic, brutal torture and murder of 0:04:32.160 --> 0:04:36.760 thousands of African Americans to a constitutional process of investigation. 0:04:37.279 --> 0:04:40.040 The only black Republican in the Senate is sticking up 0:04:40.080 --> 0:04:43.160 for Trump, telling reporters that while he himself wouldn't use 0:04:43.160 --> 0:04:47.080 the word, he understands the president's point. There's no question 0:04:47.279 --> 0:04:51.560 that the impeachment process is the closest thing of a 0:04:51.640 --> 0:04:57.720 political death row trial, so I get his absolute rejection 0:04:57.760 --> 0:05:01.280 of the process. The Black lawmaker agreed with a reporter's 0:05:01.279 --> 0:05:06.400 suggestion that the word is verily very racially charged. Global 0:05:06.440 --> 0:05:08.560 News twenty four hours a day on air in a 0:05:08.600 --> 0:05:12.080 TikTok on Twitter, powered by more than seven hundred journalists 0:05:12.080 --> 0:05:15.200 and analysts in more than a hundred twenty countries. I'm 0:05:15.240 --> 0:05:18.800 Bob Moon, Jason Carroll back to you, but thanks so much. 0:05:18.800 --> 0:05:21.320 You are listening to Bloomberg Business Week, Jason Kelly and 0:05:21.360 --> 0:05:29.760 Carol Masser right here on Bloomberg Radio. Bat down. Yeah, 0:05:29.800 --> 0:05:33.680 we're talking about farming and we're talking about sustainability underway 0:05:33.680 --> 0:05:37.240 of Bloomberg headquarters of Bloomberg Sustainable Business Summit. Our next 0:05:37.279 --> 0:05:39.920 two guests participating in the summit, and let's talk about 0:05:39.920 --> 0:05:42.559 what they are up to at Syngenta when it comes 0:05:42.560 --> 0:05:46.200 to sustainability, some big initiatives. Let's bring in Cygenta CEO 0:05:46.360 --> 0:05:50.280 Eric Feerwald and Alexandra Brand who is Chief Sustainability Officer 0:05:50.760 --> 0:05:53.480 at the Basel, Switzerland based company, both in our Bloomberg 0:05:53.480 --> 0:05:56.320 Interactor Broker studio in New York. My co host Jason 0:05:56.400 --> 0:05:58.560 Kelly out there in our l A bureau. So nice 0:05:58.600 --> 0:06:01.240 to have both of you with us. Um, Eric, let's 0:06:01.240 --> 0:06:02.920 just get right to it. What are you guys doing 0:06:02.960 --> 0:06:05.479 at Syngenta when it comes to sustainability, because I do 0:06:05.520 --> 0:06:09.440 feel like everybody's talking about it. Different companies approach it differently. 0:06:09.720 --> 0:06:13.039 Tell us about your initiatives. First of all, everything we 0:06:13.120 --> 0:06:15.960 do it c GENTA now has to do with sustainability, 0:06:16.000 --> 0:06:20.200 because agriculture is right at the hardest sustainability. This year, 0:06:21.160 --> 0:06:24.720 the extreme weather events that farmers all over the world 0:06:24.839 --> 0:06:30.040 had to deal with was unimaginable before and I opening 0:06:30.080 --> 0:06:32.920 I feel like for many unbelievable. If you were here, 0:06:33.000 --> 0:06:34.960 you saw the flooding in the United States, and it's 0:06:35.000 --> 0:06:37.760 not just part of the United States, massive part of 0:06:37.760 --> 0:06:40.440 the United States, and it wasn't just a five year 0:06:40.480 --> 0:06:43.600 or ten year flood, historic flood of all times. At 0:06:43.640 --> 0:06:47.440 the same time in Australia we're having the worst drought 0:06:47.520 --> 0:06:51.159 in history, highest temperature ever recorded in France, and other 0:06:51.240 --> 0:06:53.440 things like that. It's happening all the time. So we 0:06:53.480 --> 0:06:57.880 have to help farmers deal with climate change. It's weather extremes. 0:06:58.480 --> 0:07:00.520 The second thing we have to do is we have 0:07:00.600 --> 0:07:03.120 to as an industry be part of the solution to 0:07:03.160 --> 0:07:07.360 climate change. We've got to reduce our carbon emissions, help 0:07:07.960 --> 0:07:10.840 be part of the solution that ends up reducing carbon 0:07:10.880 --> 0:07:14.720 dioxide in the atmosphere, so so climate change is is 0:07:15.160 --> 0:07:17.840 halted that that so we've got to do both, and 0:07:17.840 --> 0:07:21.880 that's what we announced today was two billion dollars. Everything 0:07:21.920 --> 0:07:25.040 we do goes to sustainability, but two billion dollars towards 0:07:25.240 --> 0:07:28.000 breakthrough innovations, things that are really going to help step 0:07:28.080 --> 0:07:31.760 change things here alright, So Alexandra, take us a level 0:07:31.840 --> 0:07:33.720 down on that two billion dollars. How are you going 0:07:33.720 --> 0:07:35.480 to spend it? Where are you going to spend it? 0:07:35.520 --> 0:07:40.560 What is that disbursement? Look like, Grow us deeply care 0:07:40.600 --> 0:07:44.400 about their soils and soils is something which ensures that 0:07:44.480 --> 0:07:48.000 productivity and at the same time helps to sequest a 0:07:48.120 --> 0:07:50.240 carbon in the soil. So a lot of that money 0:07:50.480 --> 0:07:54.280 will be spent on good soil management. We're looking at 0:07:54.400 --> 0:07:58.160 innovating in agricultural systems. So here in the United States, 0:07:58.200 --> 0:08:02.000 for example, we help row us to decrease the common 0:08:02.040 --> 0:08:06.320 footprint of their farm, increase the carbon content of their soil, 0:08:06.800 --> 0:08:10.040 decrease the water footprint, and with that connect them to 0:08:10.120 --> 0:08:13.840 food companies who give them a better revenue for the 0:08:13.840 --> 0:08:16.800 crops they have grown because they've been growing more sustainable. 0:08:17.200 --> 0:08:19.920 So this is a model we feel is scalable, and 0:08:19.960 --> 0:08:22.920 we say we'll put much more money in matching seats, 0:08:23.000 --> 0:08:27.760 varieties to these soils and digital solutions to ensure you know, 0:08:27.800 --> 0:08:32.280 the right signs being reported year over year and traceability 0:08:32.320 --> 0:08:35.600 and transparency for food companies and consumers. How can you 0:08:35.679 --> 0:08:40.839 move in terms of sustainability actions, move others, whether it's 0:08:40.840 --> 0:08:43.320 companies that you work with, whether it's your customers, whether 0:08:43.360 --> 0:08:46.520 it's your suppliers. To get everybody on board, right, because 0:08:46.520 --> 0:08:50.240 we really need an all in focus in order to 0:08:50.280 --> 0:08:53.480 make a difference. I think the ultimate here is the 0:08:53.559 --> 0:08:57.920 consumers want this. Consumers want sustainably grown food. So we're 0:08:57.960 --> 0:09:01.120 starting to work with food companies and NGOs like the 0:09:01.200 --> 0:09:03.520 Nature Conservancy, who is with us on stage today at 0:09:03.520 --> 0:09:07.520 the Bloomberg Conference, but food companies like Kellogg's and General 0:09:07.559 --> 0:09:11.120 Mills to work with farmers in the US to make 0:09:11.120 --> 0:09:14.480 sure that they're growing using the best sustainability practices, keeping 0:09:14.520 --> 0:09:19.440 the carbon in the soil, the fewest passes over their farm, 0:09:19.800 --> 0:09:24.960 whatever it takes to have the best sustainability metrics. And 0:09:24.960 --> 0:09:28.880 then what what Kellogg's is doing now is showing farm 0:09:28.880 --> 0:09:33.080 pictures of farmers in the retail store saying this farmer, 0:09:32.760 --> 0:09:37.400 farmer John grew this week sustainably. That goes into this cereal. 0:09:38.000 --> 0:09:42.480 So ultimately we want the consumer to get the data 0:09:42.880 --> 0:09:44.800 on the food that they're buying so that they can 0:09:45.160 --> 0:09:49.640 make choices around sustainably grown foods. That's the well. And 0:09:49.880 --> 0:09:51.280 I was just gonna say, Jason, like you and I 0:09:51.280 --> 0:09:53.680 talk about this about our kids and how they turn 0:09:53.760 --> 0:09:55.760 around the boxes of things and what's in it in 0:09:55.840 --> 0:09:57.640 terms of ingredients. But I do think Jason, that we're 0:09:57.679 --> 0:09:59.680 getting towards the world where people like, where did this 0:09:59.720 --> 0:10:02.760 come from? What were the sustainability initiatives? Well, and it's 0:10:02.800 --> 0:10:06.079 so interesting too because with that bottoms up approach that 0:10:06.120 --> 0:10:09.320 we're talking about that happens around our kitchen tables, it 0:10:09.480 --> 0:10:12.480 feels like, Eric, we're also seeing a top down from 0:10:12.480 --> 0:10:14.880 the boardroom level, you know. And I wanted to ask 0:10:14.920 --> 0:10:18.240 you about that because you've served in very senior positions 0:10:18.240 --> 0:10:21.160 and a number of companies you're currently on the board, 0:10:21.240 --> 0:10:25.360 I believe of Eli Lily among others. What are those 0:10:25.400 --> 0:10:28.920 conversations like in the boardroom now versus what they might 0:10:28.960 --> 0:10:31.400 have been a few years ago. Well, it used to 0:10:31.440 --> 0:10:34.240 be on the side, you know, every now and then 0:10:34.240 --> 0:10:36.880 you'd have a conversation about E. S G or sustainability 0:10:36.960 --> 0:10:40.560 or whatever wasn't on the agenda. Perhaps maybe maybe or 0:10:40.640 --> 0:10:43.280 maybe even you had a committee you know, there's some 0:10:43.360 --> 0:10:45.000 a few people that didn't really want to be on 0:10:45.040 --> 0:10:47.920 that committee, but but somebody would do it. Now it's 0:10:48.040 --> 0:10:52.000 right at the heart of the board's discussions. Alexandra is 0:10:52.000 --> 0:10:56.520 is right there with our board talking about sustainability. Is 0:10:56.520 --> 0:10:59.400 is our business? It's not, It's not some side thing. 0:10:59.559 --> 0:11:02.240 Well that's interesting, right, because you know, for a long time, 0:11:02.400 --> 0:11:04.040 I feel like we're in the technology world. We talked 0:11:04.040 --> 0:11:06.000 about the I T people. It was a whole separate department. 0:11:06.000 --> 0:11:07.600 Now they have a seat at the table, and I 0:11:07.600 --> 0:11:10.400 feel like sustainability it's no longer like, yeah, those are 0:11:10.400 --> 0:11:11.840 those guys in the back corner. I don't know what 0:11:11.840 --> 0:11:13.600 they do. You have a seat at the table. You're 0:11:13.600 --> 0:11:16.720 in the room when decisions are happening. Alexander, Oh, absolutely, 0:11:16.760 --> 0:11:19.960 And we understand how much that thinking changes our practice, 0:11:20.200 --> 0:11:23.480 changes what is demanded from growers. So if we are there, 0:11:23.559 --> 0:11:26.200 it's absolutely critical for our business success and for the 0:11:26.240 --> 0:11:30.199 growth um. And is it gonna all be more expensive? Well, 0:11:30.240 --> 0:11:32.480 I don't think so. I think technologies are a great 0:11:32.559 --> 0:11:35.800 driver for productivity and will continue to be so. So 0:11:35.880 --> 0:11:39.320 I don't expect us to be more expensive in food production. 0:11:39.400 --> 0:11:42.760 But being able to produce food much more different with 0:11:43.040 --> 0:11:46.920 good technologies and enabling policies for these technologies. All right, 0:11:47.000 --> 0:11:49.640 so Eric, let's talk about your business a little bit. 0:11:49.760 --> 0:11:55.080 We are, after all Bloomberg What's next? Ideas has been flooded. 0:11:56.240 --> 0:11:58.079 What do you do next to sort of continue to 0:11:58.120 --> 0:12:00.600 fund to build this company to expand. Yea, So we 0:12:00.600 --> 0:12:02.800 were purchased two and a half years ago. We closed 0:12:02.800 --> 0:12:05.040 our deal with KEM China. We said at that time 0:12:05.120 --> 0:12:07.439 that we would go public. We planned I p O 0:12:07.520 --> 0:12:09.640 within five years, so we've got two and a half years. 0:12:10.360 --> 0:12:13.120 I believe that we're on track. Our our performance is strong. 0:12:13.880 --> 0:12:17.440 The markets are challenging, but assuming that that the the 0:12:17.559 --> 0:12:21.839 agriculture markets continue to stabilize and and have some improvement, 0:12:22.480 --> 0:12:24.240 I fully expect us to be able to I p 0:12:24.360 --> 0:12:26.600 O within the next year two two and a half years. 0:12:27.320 --> 0:12:30.480 Now you've heard I think that there's been word out 0:12:30.480 --> 0:12:32.640 there that we're working with banks and we're getting ready, 0:12:32.640 --> 0:12:36.760 which is true. So that whenever the market conditions are 0:12:37.520 --> 0:12:40.720 right and our performances right, within the next two years, 0:12:40.760 --> 0:12:44.320 we're we'll be ready to go public. Nothing sooner, well, 0:12:44.400 --> 0:12:47.280 we'll we'll see, but certainly nothing this year. But but um, 0:12:47.440 --> 0:12:53.440 you know, something could happen in in but that's not 0:12:53.480 --> 0:12:55.520 what we're focused on. What we're focused on right now 0:12:55.720 --> 0:12:59.760 is creating a really great company delivering strong results, and 0:12:59.800 --> 0:13:02.520 then the opportunity will open up. One last question, and 0:13:02.679 --> 0:13:05.360 because we talked so much about being a private company, 0:13:05.400 --> 0:13:08.439 I mean under KEM China just thirty seconds. Is it 0:13:08.600 --> 0:13:10.160 nicer to kind of be out of the public eye 0:13:10.200 --> 0:13:13.679 for a little bit. It is, It's very nice. But 0:13:13.720 --> 0:13:17.440 I'll tell you, even when we go public again, it's 0:13:17.720 --> 0:13:20.680 nice to have an anchor shareholder that has the long view. 0:13:21.320 --> 0:13:23.600 It's willing to allow us to invest in things that 0:13:23.640 --> 0:13:26.600 take five or ten years, technologies that are really going 0:13:26.640 --> 0:13:28.800 to make a difference. Love getting some time with both 0:13:28.800 --> 0:13:31.199 of you. Thank you so much. Eric Fierwald, CEO, it's 0:13:31.200 --> 0:13:35.079 a Genta Alexander brand, Chief Sustainability officer at c Genta. 0:13:35.400 --> 0:13:37.880 Want to take you to London and the Brexit vote 0:13:37.960 --> 0:13:44.640 to move formerly formerly Thank you. The question is as 0:13:44.679 --> 0:13:50.320 on the order paper as many as I say, I 0:13:50.400 --> 0:14:05.439 of the country now a little mate. So it looks 0:14:05.480 --> 0:14:08.880 like the government winning this vote. I'm just looking Jason 0:14:09.000 --> 0:14:11.680 at our Bloomberg Live blog. When it comes to you 0:14:12.080 --> 0:14:15.000 the UK Parliament voting on this Brexit bill. So, uh, 0:14:15.160 --> 0:14:17.199 the Prime Minister Johnson winning his first vote on the 0:14:17.240 --> 0:14:19.960 Brexit legislation. Keep in mind there are two votes. This 0:14:20.040 --> 0:14:23.160 first vote was what's known as the second reading vote, 0:14:23.400 --> 0:14:25.680 and this was basically on whether Parliament agrees with the 0:14:25.720 --> 0:14:29.600 general principles of Boris Johnson's bill. There will be another 0:14:29.680 --> 0:14:33.000 vote immediately afterward. Uh, so that will be on his 0:14:33.120 --> 0:14:36.400 proposed fast track timetable for passing the along the law. 0:14:36.520 --> 0:14:38.600 And you know you started off earlier talking about your 0:14:38.600 --> 0:14:42.040 conversation with David Weston. I mean we have so many 0:14:42.120 --> 0:14:45.560 times in this process talked about historic moments. Uh, in 0:14:45.680 --> 0:14:49.280 terms of Brexit. This is a big one. And this ultimately, 0:14:49.560 --> 0:14:52.720 you know, we'll figure out, you know, what happens and 0:14:52.760 --> 0:14:55.040 if we get something done and if we now have 0:14:55.120 --> 0:14:57.920 a real timetable in place, well, and this is a 0:14:57.960 --> 0:15:00.720 win for Boris Johnson, I think really aided at least 0:15:00.760 --> 0:15:02.920 for the moment. And obviously we know that the story 0:15:03.000 --> 0:15:07.560 changes from moment to moment for sure. But Boris Johnson, 0:15:07.600 --> 0:15:11.000 who has had a very very tough a few weeks 0:15:11.040 --> 0:15:15.360 dealing with his own party, certainly the broader parliament, certainly 0:15:15.480 --> 0:15:19.920 the EU public opinion, all of it. Uh. He pulled 0:15:19.920 --> 0:15:23.480 out a win. It was close ish, I guess three 0:15:23.520 --> 0:15:28.040 twenty nine to two nine, the pound holding its gains, 0:15:28.120 --> 0:15:31.240 we should say, uh. And our colleagues over in the 0:15:31.240 --> 0:15:34.240 top Live bugs saying that nine nine it's quite a 0:15:34.280 --> 0:15:37.880 wide gap. And uh Robert Hutton, Rob Hutton, who's covered 0:15:37.880 --> 0:15:40.600 this so closely, saying that Johnson might have enough lee 0:15:40.640 --> 0:15:43.640 way to lose some support and still get the timetable 0:15:43.720 --> 0:15:45.800 he wants through. And that's going to be the key here, 0:15:45.920 --> 0:15:50.280 right Carol, is whether that October thirty one timetable still 0:15:50.280 --> 0:15:54.720 holds for the UK to lead the EU. It's sort 0:15:54.720 --> 0:15:56.800 of remarkable where we are right now. Yeah, exactly, that 0:15:56.880 --> 0:15:58.880 second vote that was considered to be more important of 0:15:58.920 --> 0:16:01.680 the two uh and for the government more difficult to win. 0:16:01.920 --> 0:16:04.920 Let's get into this with Dr Sam and Adapaf he's 0:16:04.960 --> 0:16:07.400 president at Empire Global Ventures, joining us on the phone 0:16:07.400 --> 0:16:09.760 from Washington, d C. He's worked at the US Department 0:16:09.760 --> 0:16:12.360 of Commerce, that you at ECB, the European Central Bank, 0:16:12.360 --> 0:16:15.960 the German Bundesbank. He's got a great global perspective. So Sam, 0:16:16.360 --> 0:16:19.720 weigh in one vote down another to go, What does 0:16:20.000 --> 0:16:25.240 today's vote so far tell you, uh, I think it 0:16:25.400 --> 0:16:31.320 tells us that both politicians and Britain's are exhausted over Brexit. 0:16:31.760 --> 0:16:34.360 And some of this is just let's get this done 0:16:34.360 --> 0:16:38.880 and move on, and Boris Johnson has very cleverly harnessed that. 0:16:39.480 --> 0:16:43.400 But let's remember what Brexit is. Brexit has wrecked British politics. 0:16:43.840 --> 0:16:48.000 It's damaged the British economy, it's reduced its international status 0:16:48.080 --> 0:16:50.280 and it threatens the very nature of the United Kingdom 0:16:50.280 --> 0:16:52.760 because it opens the door for Scotland and Northern Ireland. 0:16:52.800 --> 0:16:57.160 Tale So again, he won one vote. I believe it's 0:16:57.160 --> 0:16:59.960 the first vote he's won as Prime Minister, the set 0:17:00.040 --> 0:17:02.920 can vote. He's gonna the second votes coming up. He's 0:17:03.320 --> 0:17:06.480 the the projections where he's going to lose that. But 0:17:07.359 --> 0:17:09.600 there's what's going on in the House of Commons and 0:17:09.600 --> 0:17:11.199 there's what's going to go on in the country and 0:17:11.200 --> 0:17:15.920 they're very different. Well, and remind us, uh Sam about 0:17:15.960 --> 0:17:21.119 the importance of Northern Ireland here, the DUP specifically, because 0:17:21.119 --> 0:17:23.679 it feels like they're part of the swing here and 0:17:23.720 --> 0:17:28.080 that all goes to this border with Ireland. Right, Northern 0:17:28.119 --> 0:17:31.040 Ireland has long taken the position that it is the 0:17:31.160 --> 0:17:35.439 most dutiful daughter of the British Crown, that it is 0:17:35.600 --> 0:17:39.840 inexorably part of Great Britain. And there's a different, strong 0:17:39.880 --> 0:17:43.399 difference of opinion among religionists in Northern Ireland between the 0:17:43.400 --> 0:17:45.720 Protestants who wish to remain part of Britain and the 0:17:45.760 --> 0:17:49.680 Catholics who do not. The problem is is that Boris Johnson, 0:17:50.040 --> 0:17:53.080 in running to become Prime Minister within the Conservative Party, 0:17:53.160 --> 0:17:57.280 said I will never create a red line between Britain 0:17:57.440 --> 0:18:01.880 and Northern Ireland. The bill that just past did just that. 0:18:02.760 --> 0:18:06.560 So Boris Johnson lied to the d u P. He 0:18:06.720 --> 0:18:09.760 just proved it with a vote and that's why they're 0:18:09.800 --> 0:18:13.760 voting against him now. So I'm thinking as investors, right, 0:18:13.800 --> 0:18:16.080 we've been just like you talk about fatigue, and I 0:18:16.119 --> 0:18:19.359 think we laugh about it, the story that keeps on giving, 0:18:19.400 --> 0:18:21.560 But there are many macro stories out there that I 0:18:21.560 --> 0:18:24.919 feel like keep on giving. Um. But it sounds like 0:18:24.920 --> 0:18:27.399 you're expecting, at least at this point, we are getting 0:18:27.440 --> 0:18:30.199 ready to potentially at least see the end of it, 0:18:30.280 --> 0:18:33.639 and that could be good or bad though in terms 0:18:33.760 --> 0:18:38.560 of the market environment, especially the European market environment. Look, 0:18:38.800 --> 0:18:41.600 I think you're exactly right. I think investors want clarity. 0:18:41.840 --> 0:18:45.040 Clarity overall. If if Brexit is to be the path, 0:18:45.240 --> 0:18:48.560 let's take Brexit. But as a result of the preparations 0:18:48.560 --> 0:18:52.440 for Brexit, five banks in the City of London, Deutsche Bank, JP, 0:18:52.560 --> 0:18:56.760 Morgan Goldman, Sack City Group and Morgan Stanley transferred eight 0:18:56.800 --> 0:19:00.320 hundred and fifty seven billion dollars of of balt Cheat 0:19:00.320 --> 0:19:04.520 assets from Frankfort from London to Frankfort, or ten percent 0:19:04.720 --> 0:19:09.120 of the money in the UK banking system. Honda closed 0:19:09.160 --> 0:19:14.800 down a car making manufacturing plant in central Britain, Central 0:19:14.840 --> 0:19:18.199 England because as a result of leaving the EU, there 0:19:18.200 --> 0:19:20.760 will be a ten percent tariff on this. If you're 0:19:20.800 --> 0:19:23.480 an investor and you're looking at Great Britain, you may 0:19:23.520 --> 0:19:26.360 get stability, but this may be more of a distressed 0:19:26.359 --> 0:19:29.600 asset than you thought two weeks ago. Wow, And so 0:19:29.880 --> 0:19:32.440 what is an investor looking for here? To your point, 0:19:32.520 --> 0:19:36.320 it's stability to some extent a timeline for sure. Does 0:19:36.400 --> 0:19:41.200 that mean in your estimation do companies take at least 0:19:41.200 --> 0:19:44.640 a little pause here to figure out does October one stick? 0:19:44.960 --> 0:19:47.879 Are we waiting longer? What do you expect companies to 0:19:47.880 --> 0:19:51.960 do in this very sort of brief interim period. Well, 0:19:52.040 --> 0:19:55.560 I think larger companies have been planning for Brexit for 0:19:55.720 --> 0:20:01.159 some times m land Rover and Jaguar. They have been saying, 0:20:01.600 --> 0:20:05.560 you know, we are you know, we are ostensibly British companies, 0:20:05.880 --> 0:20:08.760 but we are having to plan for an enormously difficult 0:20:08.800 --> 0:20:13.000 process for US. So banks have been planning, large corporates 0:20:13.000 --> 0:20:16.520 have been planning. The problem is smaller British companies haven't 0:20:16.520 --> 0:20:19.440 been able to plan because they haven't had that flexibility. 0:20:19.920 --> 0:20:23.760 And if Boris Johnson wins this next vote, Brexit happens 0:20:23.800 --> 0:20:26.359 on Thursday. You know it's interesting. I'm looking at our 0:20:26.359 --> 0:20:29.040 Bloomberg Live blog we love this where our our whole 0:20:29.080 --> 0:20:31.040 team is weighing in on this, and Robert Hotten, our 0:20:31.080 --> 0:20:34.760 UK government reporters, says appearances can be deceptive on this 0:20:34.920 --> 0:20:37.480 meaning Brexit and the Brexit vote. On Saturday, I watched 0:20:37.480 --> 0:20:39.479 the d up head for the No lobby, or so 0:20:39.560 --> 0:20:42.080 I thought it turned out they voted yes. So it 0:20:42.119 --> 0:20:44.560 ain't over until it's over, Sam, right, I mean, you 0:20:44.680 --> 0:20:48.800 just never know ultimately how things will end. Even if 0:20:48.800 --> 0:20:52.040 you think you understand someone's position going into it, you're 0:20:52.080 --> 0:20:54.400 absolutely right, and when it comes to the d up 0:20:55.040 --> 0:20:58.560 their own position, of their own political position at home 0:20:58.640 --> 0:21:02.399 is quite challenging. But again, when investors look at this, 0:21:02.760 --> 0:21:05.919 they tend to like to hear what's going on. The 0:21:05.960 --> 0:21:10.320 CEO of Jaguar Landrover said that Brexit was jeopardizing eighty 0:21:10.359 --> 0:21:13.399 billion pounds and its future investments into the UK, and 0:21:13.440 --> 0:21:16.280 that a bad Brexit would cost Jaguar Landrover over one 0:21:16.320 --> 0:21:20.520 point to billion pounds and profit every year. Um, you 0:21:20.640 --> 0:21:22.840 never know what's going to happen, and with Brexit we've 0:21:22.840 --> 0:21:25.360 all been made fools of many times. But people who 0:21:25.359 --> 0:21:29.040 are spending money on participating in the British economy they've 0:21:29.080 --> 0:21:32.120 been watching closely and they thought this thing was over 0:21:32.160 --> 0:21:35.199 for a long time. And so it's sam as you 0:21:35.240 --> 0:21:37.960 think about the global implications of this. I mean, obviously 0:21:37.960 --> 0:21:41.400 this is an incredibly important story domestically in the UK 0:21:41.800 --> 0:21:46.600 and regionally for Europe. But what about elsewhere back here 0:21:46.600 --> 0:21:50.320 in the United States? How are people viewing this? Because 0:21:50.440 --> 0:21:52.840 all eyes have been especially over the last week or so, 0:21:52.880 --> 0:21:56.719 it feels like on something close to a resolution here. 0:21:56.720 --> 0:21:59.720 If you're a central banker, if you're a CEO, what 0:21:59.800 --> 0:22:04.080 are you thinking right now? Uh? The Central bankers want 0:22:04.119 --> 0:22:06.520 to get back to managing monetary policy and they're really 0:22:06.560 --> 0:22:09.439 tired of focusing on this. If you're a president and 0:22:09.480 --> 0:22:11.240 you look out at the world, you see that the 0:22:11.320 --> 0:22:14.359 United States is beginning to get UM caught in the 0:22:14.359 --> 0:22:18.280