Speaker 1: The vote is underway in the UK Parliament and Carol
Speaker 1: will bring you those results live when they happen. We're
Speaker 1: also going to catch up with the CEO of sin
Speaker 1: Genta making a bold move into the world of sustainability.
Speaker 1: It feels like putting his money where his mouth is
Speaker 1: here exactly so we'll hear from him. Is also his
Speaker 1: chief sustainability officer. We've got fifty companies to watch. It's
Speaker 1: in the upcoming issue of Bloomberg Business Weekend. Under Armoured
Speaker 1: Kevin plank Out s CEO, not totally leaving the company
Speaker 1: he founded, but this is a big change from the
Speaker 1: company that he has been running for more than two decades.
Speaker 1: And then we're gonna talk about t I earnings. I
Speaker 1: think it's important to focus on that chip sector. Yeah,
Speaker 1: absolutely so a lot to get to coming up. So
Speaker 1: how do we make sense of all of this going
Speaker 1: on at once? You heard Charlie talk about the market
Speaker 1: reaction to all these headlines headline bingo once again. Today,
Speaker 1: let's it turn to our boys to set the business
Speaker 1: week agenda. Joe Wis Andhal Markets editor for Bloomberg, the
Speaker 1: co host of What You Miss That's coming up at
Speaker 1: four pm Wall Street Time on bat the and Dave Wilson,
Speaker 1: Stocks Editor, author of the chart and the stock of
Speaker 1: the Day. So, Dave, I want to start with you,
Speaker 1: what's the one thing you're looking at amid these the
Speaker 1: sea of headlines. Well, just such a mixed bag when
Speaker 1: it comes to earnings today and you know, not something
Speaker 1: that we've seen up to now in earning season. And
Speaker 1: maybe the easiest way to kind of illustrate that is
Speaker 1: to look at the four companies in the Dow Jones
Speaker 1: Industrial Average and reported results before the opening bell. You
Speaker 1: got Procter and Gamble their fiscal first quarter results beating
Speaker 1: analysts average estimates in Bloomberg survey and that stocks up
Speaker 1: more than three percent. You've got United Technology coming out
Speaker 1: of the head of projections for the third quarter, raising
Speaker 1: their full year forecast, which by the way, P and
Speaker 1: G did as well. United Technologies up two point three percent.
Speaker 1: And on the other hand, yeah, McDonald's down four and
Speaker 1: a half percent. There were a US results really uh
Speaker 1: the source of that kind of decline because they came
Speaker 1: up short on the top oup line and bottom line
Speaker 1: in the US sales just didn't measure up to what
Speaker 1: people were looking for and Travelers down seven point four
Speaker 1: percent their third quarter earnings well below projections, are talking
Speaker 1: about legal costs, are talking about weather related losses. But
Speaker 1: that contrast really shows you what's going on in terms
Speaker 1: of earnings and why stocks really have no direction if
Speaker 1: you look at the S and P five at the moment.
Speaker 1: All right, let's bring in Joe. Why is it thought, Joe,
Speaker 1: what's the one thing you think, uh investors need to
Speaker 1: know on this Tuesday? Well, it's kind of quiet, but
Speaker 1: you know, right now as we're talking, we're about to
Speaker 1: get the thick of Brexit news. And I do think
Speaker 1: that one of the weirder things that's happened over the
Speaker 1: last couple of weeks is that Brexit news is not
Speaker 1: has no longer been confined to UK and the Brexit
Speaker 1: news has moved global markets. So I am talking to
Speaker 1: you but also with one eye looking at our coverage
Speaker 1: because this is now, at least for for the moment,
Speaker 1: a macro story. Yeah, no doubt about it. And I
Speaker 1: feel like, you know, investors continue to deal with so
Speaker 1: many different macro stories. It's something we talked about in
Speaker 1: the magazine this week and really question, you know, can
Speaker 1: we once again kind of climb this wall of worry
Speaker 1: when it comes to the trade. All right, Joe Wisenthal,
Speaker 1: thank you so much. Markets thattor Bloomberg News co host
Speaker 1: of would you miss Find That? At four pm Wall
Speaker 1: Street Time on Bloomberg TV, Davi Wilson. He's going to
Speaker 1: be back a little bit later on with his chart
Speaker 1: and stock of the day. He's our stock sedator at
Speaker 1: Bloomberg News. Let's get a check on world of national
Speaker 1: news headlines for that. Let's turn things over to Bob Moon, Carol,
Speaker 1: thank you. Senate Majority Leader Mitch McConnell put the brakes
Speaker 1: on a move to impose sanctions on Turkey over its
Speaker 1: incursion into Syria. Bloomberg's earv Chapman reports from Capitol Hill.
Speaker 1: The Condell introduced his own resolution that calls on President
Speaker 1: Trump to end the draw down of US forces from
Speaker 1: the area and rethink his invitation for Turkey's president or
Speaker 1: to want to visit the White House. Sanctions may play
Speaker 1: an important role, and I'm open to the Sunate considering them,
Speaker 1: but we need to thank extremely carefully before we employ
Speaker 1: the same tools against a democratic NATO allah that we
Speaker 1: would against the worst row State Committees of both houses
Speaker 1: are holding hearings this week on the President's unexpected decision
Speaker 1: to pull the United States out of its alliance with
Speaker 1: the Syrian curred forces that have fought the Islamic State.
Speaker 1: On Capitol Hill or chap and Bloomberg Radio, the Congressional
Speaker 1: Black Caucus is condemning President Trump's comparison of impeachment to lynching.
Speaker 1: Democratic Karen Bass of California, the group's chairwoman, called lynching
Speaker 1: a horrific stain on our country's history and said it's
Speaker 1: wrong to compare the systematic, brutal torture and murder of
Speaker 1: thousands of African Americans to a constitutional process of investigation.
Speaker 1: The only black Republican in the Senate is sticking up
Speaker 1: for Trump, telling reporters that while he himself wouldn't use
Speaker 1: the word, he understands the president's point. There's no question
Speaker 1: that the impeachment process is the closest thing of a
Speaker 1: political death row trial, so I get his absolute rejection
Speaker 1: of the process. The Black lawmaker agreed with a reporter's
Speaker 1: suggestion that the word is verily very racially charged. Global
Speaker 1: News twenty four hours a day on air in a
Speaker 1: TikTok on Twitter, powered by more than seven hundred journalists
Speaker 1: and analysts in more than a hundred twenty countries. I'm
Speaker 1: Bob Moon, Jason Carroll back to you, but thanks so much.
Speaker 1: You are listening to Bloomberg Business Week, Jason Kelly and
Speaker 1: Carol Masser right here on Bloomberg Radio. Bat down. Yeah,
Speaker 1: we're talking about farming and we're talking about sustainability underway
Speaker 1: of Bloomberg headquarters of Bloomberg Sustainable Business Summit. Our next
Speaker 1: two guests participating in the summit, and let's talk about
Speaker 1: what they are up to at Syngenta when it comes
Speaker 1: to sustainability, some big initiatives. Let's bring in Cygenta CEO
Speaker 1: Eric Feerwald and Alexandra Brand who is Chief Sustainability Officer
Speaker 1: at the Basel, Switzerland based company, both in our Bloomberg
Speaker 1: Interactor Broker studio in New York. My co host Jason
Speaker 1: Kelly out there in our l A bureau. So nice
Speaker 1: to have both of you with us. Um, Eric, let's
Speaker 1: just get right to it. What are you guys doing
Speaker 1: at Syngenta when it comes to sustainability, because I do
Speaker 1: feel like everybody's talking about it. Different companies approach it differently.
Speaker 1: Tell us about your initiatives. First of all, everything we
Speaker 1: do it c GENTA now has to do with sustainability,
Speaker 1: because agriculture is right at the hardest sustainability. This year,
Speaker 1: the extreme weather events that farmers all over the world
Speaker 1: had to deal with was unimaginable before and I opening
Speaker 1: I feel like for many unbelievable. If you were here,
Speaker 1: you saw the flooding in the United States, and it's
Speaker 1: not just part of the United States, massive part of
Speaker 1: the United States, and it wasn't just a five year
Speaker 1: or ten year flood, historic flood of all times. At
Speaker 1: the same time in Australia we're having the worst drought
Speaker 1: in history, highest temperature ever recorded in France, and other
Speaker 1: things like that. It's happening all the time. So we
Speaker 1: have to help farmers deal with climate change. It's weather extremes.
Speaker 1: The second thing we have to do is we have
Speaker 1: to as an industry be part of the solution to
Speaker 1: climate change. We've got to reduce our carbon emissions, help
Speaker 1: be part of the solution that ends up reducing carbon
Speaker 1: dioxide in the atmosphere, so so climate change is is
Speaker 1: halted that that so we've got to do both, and
Speaker 1: that's what we announced today was two billion dollars. Everything
Speaker 1: we do goes to sustainability, but two billion dollars towards
Speaker 1: breakthrough innovations, things that are really going to help step
Speaker 1: change things here alright, So Alexandra, take us a level
Speaker 1: down on that two billion dollars. How are you going
Speaker 1: to spend it? Where are you going to spend it?
Speaker 1: What is that disbursement? Look like, Grow us deeply care
Speaker 1: about their soils and soils is something which ensures that
Speaker 1: productivity and at the same time helps to sequest a
Speaker 1: carbon in the soil. So a lot of that money
Speaker 1: will be spent on good soil management. We're looking at
Speaker 1: innovating in agricultural systems. So here in the United States,
Speaker 1: for example, we help row us to decrease the common
Speaker 1: footprint of their farm, increase the carbon content of their soil,
Speaker 1: decrease the water footprint, and with that connect them to
Speaker 1: food companies who give them a better revenue for the
Speaker 1: crops they have grown because they've been growing more sustainable.
Speaker 1: So this is a model we feel is scalable, and
Speaker 1: we say we'll put much more money in matching seats,
Speaker 1: varieties to these soils and digital solutions to ensure you know,
Speaker 1: the right signs being reported year over year and traceability
Speaker 1: and transparency for food companies and consumers. How can you
Speaker 1: move in terms of sustainability actions, move others, whether it's
Speaker 1: companies that you work with, whether it's your customers, whether
Speaker 1: it's your suppliers. To get everybody on board, right, because
Speaker 1: we really need an all in focus in order to
Speaker 1: make a difference. I think the ultimate here is the
Speaker 1: consumers want this. Consumers want sustainably grown food. So we're
Speaker 1: starting to work with food companies and NGOs like the
Speaker 1: Nature Conservancy, who is with us on stage today at
Speaker 1: the Bloomberg Conference, but food companies like Kellogg's and General
Speaker 1: Mills to work with farmers in the US to make
Speaker 1: sure that they're growing using the best sustainability practices, keeping
Speaker 1: the carbon in the soil, the fewest passes over their farm,
Speaker 1: whatever it takes to have the best sustainability metrics. And
Speaker 1: then what what Kellogg's is doing now is showing farm
Speaker 1: pictures of farmers in the retail store saying this farmer,
Speaker 1: farmer John grew this week sustainably. That goes into this cereal.
Speaker 1: So ultimately we want the consumer to get the data
Speaker 1: on the food that they're buying so that they can
Speaker 1: make choices around sustainably grown foods. That's the well. And
Speaker 1: I was just gonna say, Jason, like you and I
Speaker 1: talk about this about our kids and how they turn
Speaker 1: around the boxes of things and what's in it in
Speaker 1: terms of ingredients. But I do think Jason, that we're
Speaker 1: getting towards the world where people like, where did this
Speaker 1: come from? What were the sustainability initiatives? Well, and it's
Speaker 1: so interesting too because with that bottoms up approach that
Speaker 1: we're talking about that happens around our kitchen tables, it
Speaker 1: feels like, Eric, we're also seeing a top down from
Speaker 1: the boardroom level, you know. And I wanted to ask
Speaker 1: you about that because you've served in very senior positions
Speaker 1: and a number of companies you're currently on the board,
Speaker 1: I believe of Eli Lily among others. What are those
Speaker 1: conversations like in the boardroom now versus what they might
Speaker 1: have been a few years ago. Well, it used to
Speaker 1: be on the side, you know, every now and then
Speaker 1: you'd have a conversation about E. S G or sustainability
Speaker 1: or whatever wasn't on the agenda. Perhaps maybe maybe or
Speaker 1: maybe even you had a committee you know, there's some
Speaker 1: a few people that didn't really want to be on
Speaker 1: that committee, but but somebody would do it. Now it's
Speaker 1: right at the heart of the board's discussions. Alexandra is
Speaker 1: is right there with our board talking about sustainability. Is
Speaker 1: is our business? It's not, It's not some side thing.
Speaker 1: Well that's interesting, right, because you know, for a long time,
Speaker 1: I feel like we're in the technology world. We talked
Speaker 1: about the I T people. It was a whole separate department.
Speaker 1: Now they have a seat at the table, and I
Speaker 1: feel like sustainability it's no longer like, yeah, those are
Speaker 1: those guys in the back corner. I don't know what
Speaker 1: they do. You have a seat at the table. You're
Speaker 1: in the room when decisions are happening. Alexander, Oh, absolutely,
Speaker 1: And we understand how much that thinking changes our practice,
Speaker 1: changes what is demanded from growers. So if we are there,
Speaker 1: it's absolutely critical for our business success and for the
Speaker 1: growth um. And is it gonna all be more expensive? Well,
Speaker 1: I don't think so. I think technologies are a great
Speaker 1: driver for productivity and will continue to be so. So
Speaker 1: I don't expect us to be more expensive in food production.
Speaker 1: But being able to produce food much more different with
Speaker 1: good technologies and enabling policies for these technologies. All right,
Speaker 1: so Eric, let's talk about your business a little bit.
Speaker 1: We are, after all Bloomberg What's next? Ideas has been flooded.
Speaker 1: What do you do next to sort of continue to
Speaker 1: fund to build this company to expand. Yea, So we
Speaker 1: were purchased two and a half years ago. We closed
Speaker 1: our deal with KEM China. We said at that time
Speaker 1: that we would go public. We planned I p O
Speaker 1: within five years, so we've got two and a half years.
Speaker 1: I believe that we're on track. Our our performance is strong.
Speaker 1: The markets are challenging, but assuming that that the the
Speaker 1: agriculture markets continue to stabilize and and have some improvement,
Speaker 1: I fully expect us to be able to I p
Speaker 1: O within the next year two two and a half years.
Speaker 1: Now you've heard I think that there's been word out
Speaker 1: there that we're working with banks and we're getting ready,
Speaker 1: which is true. So that whenever the market conditions are
Speaker 1: right and our performances right, within the next two years,
Speaker 1: we're we'll be ready to go public. Nothing sooner, well,
Speaker 1: we'll we'll see, but certainly nothing this year. But but um,
Speaker 1: you know, something could happen in in but that's not
Speaker 1: what we're focused on. What we're focused on right now
Speaker 1: is creating a really great company delivering strong results, and
Speaker 1: then the opportunity will open up. One last question, and
Speaker 1: because we talked so much about being a private company,
Speaker 1: I mean under KEM China just thirty seconds. Is it
Speaker 1: nicer to kind of be out of the public eye
Speaker 1: for a little bit. It is, It's very nice. But
Speaker 1: I'll tell you, even when we go public again, it's
Speaker 1: nice to have an anchor shareholder that has the long view.
Speaker 1: It's willing to allow us to invest in things that
Speaker 1: take five or ten years, technologies that are really going
Speaker 1: to make a difference. Love getting some time with both
Speaker 1: of you. Thank you so much. Eric Fierwald, CEO, it's
Speaker 1: a Genta Alexander brand, Chief Sustainability officer at c Genta.
Speaker 1: Want to take you to London and the Brexit vote
Speaker 1: to move formerly formerly Thank you. The question is as
Speaker 1: on the order paper as many as I say, I
Speaker 1: of the country now a little mate. So it looks
Speaker 1: like the government winning this vote. I'm just looking Jason
Speaker 1: at our Bloomberg Live blog. When it comes to you
Speaker 1: the UK Parliament voting on this Brexit bill. So, uh,
Speaker 1: the Prime Minister Johnson winning his first vote on the
Speaker 1: Brexit legislation. Keep in mind there are two votes. This
Speaker 1: first vote was what's known as the second reading vote,
Speaker 1: and this was basically on whether Parliament agrees with the
Speaker 1: general principles of Boris Johnson's bill. There will be another
Speaker 1: vote immediately afterward. Uh, so that will be on his
Speaker 1: proposed fast track timetable for passing the along the law.
Speaker 1: And you know you started off earlier talking about your
Speaker 1: conversation with David Weston. I mean we have so many
Speaker 1: times in this process talked about historic moments. Uh, in
Speaker 1: terms of Brexit. This is a big one. And this ultimately,
Speaker 1: you know, we'll figure out, you know, what happens and
Speaker 1: if we get something done and if we now have
Speaker 1: a real timetable in place, well, and this is a
Speaker 1: win for Boris Johnson, I think really aided at least
Speaker 1: for the moment. And obviously we know that the story
Speaker 1: changes from moment to moment for sure. But Boris Johnson,
Speaker 1: who has had a very very tough a few weeks
Speaker 1: dealing with his own party, certainly the broader parliament, certainly
Speaker 1: the EU public opinion, all of it. Uh. He pulled
Speaker 1: out a win. It was close ish, I guess three
Speaker 1: twenty nine to two nine, the pound holding its gains,
Speaker 1: we should say, uh. And our colleagues over in the
Speaker 1: top Live bugs saying that nine nine it's quite a
Speaker 1: wide gap. And uh Robert Hutton, Rob Hutton, who's covered
Speaker 1: this so closely, saying that Johnson might have enough lee
Speaker 1: way to lose some support and still get the timetable
Speaker 1: he wants through. And that's going to be the key here,
Speaker 1: right Carol, is whether that October thirty one timetable still
Speaker 1: holds for the UK to lead the EU. It's sort
Speaker 1: of remarkable where we are right now. Yeah, exactly, that
Speaker 1: second vote that was considered to be more important of
Speaker 1: the two uh and for the government more difficult to win.
Speaker 1: Let's get into this with Dr Sam and Adapaf he's
Speaker 1: president at Empire Global Ventures, joining us on the phone
Speaker 1: from Washington, d C. He's worked at the US Department
Speaker 1: of Commerce, that you at ECB, the European Central Bank,
Speaker 1: the German Bundesbank. He's got a great global perspective. So Sam,
Speaker 1: weigh in one vote down another to go, What does
Speaker 1: today's vote so far tell you, uh, I think it
Speaker 1: tells us that both politicians and Britain's are exhausted over Brexit.
Speaker 1: And some of this is just let's get this done
Speaker 1: and move on, and Boris Johnson has very cleverly harnessed that.
Speaker 1: But let's remember what Brexit is. Brexit has wrecked British politics.
Speaker 1: It's damaged the British economy, it's reduced its international status
Speaker 1: and it threatens the very nature of the United Kingdom
Speaker 1: because it opens the door for Scotland and Northern Ireland.
Speaker 1: Tale So again, he won one vote. I believe it's
Speaker 1: the first vote he's won as Prime Minister, the set
Speaker 1: can vote. He's gonna the second votes coming up. He's
Speaker 1: the the projections where he's going to lose that. But
Speaker 1: there's what's going on in the House of Commons and
Speaker 1: there's what's going to go on in the country and
Speaker 1: they're very different. Well, and remind us, uh Sam about
Speaker 1: the importance of Northern Ireland here, the DUP specifically, because
Speaker 1: it feels like they're part of the swing here and
Speaker 1: that all goes to this border with Ireland. Right, Northern
Speaker 1: Ireland has long taken the position that it is the
Speaker 1: most dutiful daughter of the British Crown, that it is
Speaker 1: inexorably part of Great Britain. And there's a different, strong
Speaker 1: difference of opinion among religionists in Northern Ireland between the
Speaker 1: Protestants who wish to remain part of Britain and the
Speaker 1: Catholics who do not. The problem is is that Boris Johnson,
Speaker 1: in running to become Prime Minister within the Conservative Party,
Speaker 1: said I will never create a red line between Britain
Speaker 1: and Northern Ireland. The bill that just past did just that.
Speaker 1: So Boris Johnson lied to the d u P. He
Speaker 1: just proved it with a vote and that's why they're
Speaker 1: voting against him now. So I'm thinking as investors, right,
Speaker 1: we've been just like you talk about fatigue, and I
Speaker 1: think we laugh about it, the story that keeps on giving,
Speaker 1: But there are many macro stories out there that I
Speaker 1: feel like keep on giving. Um. But it sounds like
Speaker 1: you're expecting, at least at this point, we are getting
Speaker 1: ready to potentially at least see the end of it,
Speaker 1: and that could be good or bad though in terms
Speaker 1: of the market environment, especially the European market environment. Look,
Speaker 1: I think you're exactly right. I think investors want clarity.
Speaker 1: Clarity overall. If if Brexit is to be the path,
Speaker 1: let's take Brexit. But as a result of the preparations
Speaker 1: for Brexit, five banks in the City of London, Deutsche Bank, JP,
Speaker 1: Morgan Goldman, Sack City Group and Morgan Stanley transferred eight
Speaker 1: hundred and fifty seven billion dollars of of balt Cheat
Speaker 1: assets from Frankfort from London to Frankfort, or ten percent
Speaker 1: of the money in the UK banking system. Honda closed
Speaker 1: down a car making manufacturing plant in central Britain, Central
Speaker 1: England because as a result of leaving the EU, there
Speaker 1: will be a ten percent tariff on this. If you're
Speaker 1: an investor and you're looking at Great Britain, you may
Speaker 1: get stability, but this may be more of a distressed
Speaker 1: asset than you thought two weeks ago. Wow, And so
Speaker 1: what is an investor looking for here? To your point,
Speaker 1: it's stability to some extent a timeline for sure. Does
Speaker 1: that mean in your estimation do companies take at least
Speaker 1: a little pause here to figure out does October one stick?
Speaker 1: Are we waiting longer? What do you expect companies to
Speaker 1: do in this very sort of brief interim period. Well,
Speaker 1: I think larger companies have been planning for Brexit for
Speaker 1: some times m land Rover and Jaguar. They have been saying,
Speaker 1: you know, we are you know, we are ostensibly British companies,
Speaker 1: but we are having to plan for an enormously difficult
Speaker 1: process for US. So banks have been planning, large corporates
Speaker 1: have been planning. The problem is smaller British companies haven't
Speaker 1: been able to plan because they haven't had that flexibility.
Speaker 1: And if Boris Johnson wins this next vote, Brexit happens
Speaker 1: on Thursday. You know it's interesting. I'm looking at our
Speaker 1: Bloomberg Live blog we love this where our our whole
Speaker 1: team is weighing in on this, and Robert Hotten, our
Speaker 1: UK government reporters, says appearances can be deceptive on this
Speaker 1: meaning Brexit and the Brexit vote. On Saturday, I watched
Speaker 1: the d up head for the No lobby, or so
Speaker 1: I thought it turned out they voted yes. So it
Speaker 1: ain't over until it's over, Sam, right, I mean, you
Speaker 1: just never know ultimately how things will end. Even if
Speaker 1: you think you understand someone's position going into it, you're
Speaker 1: absolutely right, and when it comes to the d up
Speaker 1: their own position, of their own political position at home
Speaker 1: is quite challenging. But again, when investors look at this,
Speaker 1: they tend to like to hear what's going on. The
Speaker 1: CEO of Jaguar Landrover said that Brexit was jeopardizing eighty
Speaker 1: billion pounds and its future investments into the UK, and
Speaker 1: that a bad Brexit would cost Jaguar Landrover over one
Speaker 1: point to billion pounds and profit every year. Um, you
Speaker 1: never know what's going to happen, and with Brexit we've
Speaker 1: all been made fools of many times. But people who
Speaker 1: are spending money on participating in the British economy they've
Speaker 1: been watching closely and they thought this thing was over
Speaker 1: for a long time. And so it's sam as you
Speaker 1: think about the global implications of this. I mean, obviously
Speaker 1: this is an incredibly important story domestically in the UK
Speaker 1: and regionally for Europe. But what about elsewhere back here
Speaker 1: in the United States? How are people viewing this? Because
Speaker 1: all eyes have been especially over the last week or so,
Speaker 1: it feels like on something close to a resolution here.
Speaker 1: If you're a central banker, if you're a CEO, what
Speaker 1: are you thinking right now? Uh? The Central bankers want
Speaker 1: to get back to managing monetary policy and they're really
Speaker 1: tired of focusing on this. If you're a president and
Speaker 1: you look out at the world, you see that the
Speaker 1: United States is beginning to get UM caught in the
Speaker 1: grip of an impeachment hearings, the EU is paralyzed by Brexit,
Speaker 1: so that economic so that economic energy is shifting more
Speaker 1: to Asia. So Sam, hanging on a second. We do
Speaker 1: have members of Parliament coming back to their seats at
Speaker 1: this point, we just want to update everybody. We did
Speaker 1: have the d u P voting against the UK government's
Speaker 1: timetable that's coming from the BBC, so we're getting a
Speaker 1: little bit more information at that. Forgive me, Sam, go ahead. UM.
Speaker 1: So if investors may see that the US market, while
Speaker 1: it's growing, may not be a value by at this point,
Speaker 1: that UM Britain is something is a longer term investment
Speaker 1: in terms of a distressed asset, and I think U
Speaker 1: hasn't come to grips with how its economy is going
Speaker 1: to change, and that smaller Asian countries maybe a real
Speaker 1: opportunity for investment opportunities. Sam. I do wonder if this process,
Speaker 1: how how pained it has been and tortured. That are
Speaker 1: other countries who maybe are not so happy as being
Speaker 1: part of the European block, thinking okay, there's no way
Speaker 1: I would I would step back. Are there others who
Speaker 1: might see if ultimately Brexit looks like it will happen,
Speaker 1: we'll say, well, maybe that's a consideration. I think you're
Speaker 1: exactly right. And the EU has deeply, has deeply been
Speaker 1: angry about this process, but it's sent a very clear
Speaker 1: signal to anyone thinking of leaving the EU you don't
Speaker 1: want to try this, and so you know, Sam, it's
Speaker 1: also interesting to think about this timetable and that goes
Speaker 1: back to what you said about investors wanting stability. If
Speaker 1: this gets lengthened, if we go you know, another month,
Speaker 1: another two months, I mean that I would imagine will
Speaker 1: have continue to have real economic effect as people, as
Speaker 1: you say, continue to make some decisions, but maybe don't
Speaker 1: make their final decisions. As this takes another twist and turn.
Speaker 1: I think the key international economic institutions that were in
Speaker 1: London have left, UM the clearing house businesses, they have
Speaker 1: created mirror images in the EU so that they can
Speaker 1: continue doing their eurodollar business. UM major banks as I said,
Speaker 1: have moved nine hundred you know, nine hundred billion pounds
Speaker 1: out of Britain. Um Key EU institutions, their version of
Speaker 1: the Food and Drug Administration. They have moved out of
Speaker 1: London and moved to Amsterdam. So the big institutional decisions
Speaker 1: and reassessments they've already taken place now, So big decisions
Speaker 1: have been taken. Now we'll find out when the rubber
Speaker 1: hits the road for everybody else, right when it really
Speaker 1: this is it, folks. Tim ross Or UK Government team
Speaker 1: leader on our Bloomberg Live blog, saying, I'm inside the
Speaker 1: Commons chamber where MPs are excitedly chattering to each other.
Speaker 1: John's in, of course. Prime Minister Boris Johnson has voted.
Speaker 1: Now he's back on the front bench, looking relaxed and
Speaker 1: sharing a joke with an m P. I mean, you know,
Speaker 1: no doubt about it, Sam. Now this is a really
Speaker 1: big day for him and in terms of support or
Speaker 1: no support, let's be clear, Boris Johnson did something that
Speaker 1: none of his predecessors could do. He want to vote
Speaker 1: on Brexit. That's that's historic. He Theresa May, with a
Speaker 1: very different bill was defeated multiple times. Boris Johnson in
Speaker 1: his first key vote on Brexit, got a win that
Speaker 1: his party was desperate for. If Boris Johnson wins the
Speaker 1: next vote, he will be able to lead a unified
Speaker 1: Conservative Party into a general election saying we did Brexit.
Speaker 1: Now let's look to the future. Brexit is the issue
Speaker 1: that divides his party and therefore he'd be very likely
Speaker 1: to win the next general election if he wins this
Speaker 1: next vote. Let's just rehash what has happened Boris Johnson
Speaker 1: as we've been talking and clinching a dramatic vote for
Speaker 1: his new Brexit plan in the first demonstration that Parliament
Speaker 1: is prepared to prove the broad principles of an agreement
Speaker 1: that takes the UK out of the European Union. Before
Speaker 1: all this happens, though, they will also vote on whether
Speaker 1: to accept the Prime Minister's accelerated timetable for the legislation
Speaker 1: to pass before October thirty one. And that's where we
Speaker 1: are right now. Jason Well, and I should point out
Speaker 1: Carol that the pound is weakening versus the dollar right
Speaker 1: now as these headlines start to come through that the
Speaker 1: d u P, of course representing Northern Ireland, has uh
Speaker 1: not voted with Prime Minister Boris Johnson, the pound head
Speaker 1: spiked on news of the initial when the that went
Speaker 1: on that first vote, but now it is falling. It has,
Speaker 1: in the words of one of our colleagues, reversed its
Speaker 1: meager gain head at the second vote, and perhaps indeed
Speaker 1: the headlines on the d up weighing there. So we
Speaker 1: will await and see where this vote turns out. We
Speaker 1: do expect. We noted that Boris Johnson, the Prime Minister,
Speaker 1: was making notes. He will stand up and say something.
Speaker 1: Probably regardless of which way this vote goes, I should say, yeah,
Speaker 1: We're gonna continue to watch and monitor the process out
Speaker 1: of the UK Parliament. Of course, wait for news of
Speaker 1: that second vote. In the meantime, let's get you caught
Speaker 1: up on the world of business and also check on
Speaker 1: trading here in the United States. Here is Charlie Tell
Speaker 1: and I think very much here's what's going on US equities.
Speaker 1: They are trading mixed right now. We've got the Dow,
Speaker 1: the SMP, both Hire Nestack on the minor side right
Speaker 1: now looking at sterling dollar twenty nine seventeen amid this
Speaker 1: Brexit vote, we've got the tenure up three thirty seconds
Speaker 1: with the yield of one point seven eight percent gold
Speaker 1: Hier Little changed up forty five cents the ounce. At
Speaker 1: fourteen eighty four. West Texas Centimedia crewed up one point
Speaker 1: percent fifty four twenty three of barrel. The Dow up
Speaker 1: ninety a gain of three tenths of one percent, SMP
Speaker 1: up three, up by one tenth ne Stack again down
Speaker 1: two tenths of one percent, SMP right towards a twelve
Speaker 1: week high. I'm Charlie Pellatton. That is a bloom Bird
Speaker 1: Business flash. All right, Charlie, thank you so much. You're
Speaker 1: listening to Bloomberg Business Week. Cale Masser in our Bloomberg
Speaker 1: Interactor Broker studio in New York. Jason Kelly in our
Speaker 1: Los Angeles bureau. We've been talking to Dr Sam Natapo,
Speaker 1: president at the Empire Global Ventures, on the phone from Washington,
Speaker 1: d C. We've been talking about the Brexit vote one
Speaker 1: vote down in favor of Boris Johnson. But right now
Speaker 1: it's all about the timetable. And you know, you have
Speaker 1: to keep in mind that if he cannot get this
Speaker 1: legislation through by October thirty one, it will be in
Speaker 1: the hands of the European Union to decide whether to
Speaker 1: grant an extension to January thirty one that's sought by
Speaker 1: the UK Parliament, or to oper a shorter or longer delay.
Speaker 1: If the Block refuses to do so, the UK will
Speaker 1: be on track to crash out of the EU without
Speaker 1: a deal on October thirty one. If this does not
Speaker 1: go and the timetable is an approved SAM is a
Speaker 1: hard Brexit kind of a done deal? Um. I think
Speaker 1: that's highly possible. Again, Brexit has made fools of assault.
Speaker 1: But but the best analysis of Brexit that I've heard
Speaker 1: came from US Speaker of the House, Nancy Pelosi, because
Speaker 1: the question she always asks is do you have the votes?
Speaker 1: Does Boris Johnson have the votes in the House of Commons?
Speaker 1: Are did the votes in the European Council of Ministers
Speaker 1: to approve the delay? Do you have the votes? They
Speaker 1: had the votes when it came to the brexit um
Speaker 1: referendum in they just had them about fifteen minutes ago.
Speaker 1: Will they have them five minutes from now? Right? And
Speaker 1: all of this does come down Carrol, as you were
Speaker 1: just saying to this question of the timetable, Um, we
Speaker 1: do you know you're watching pictures there? The Chamber is
Speaker 1: filling up again, so it won't be long before we
Speaker 1: get this next result. Uh. Rob Hutton, who is inside
Speaker 1: the chamber, is saying that Chief Whip Whip Mark Spencer
Speaker 1: is kneeling and talking to Boris Johnson. Rob Hutton sees
Speaker 1: that as a bad sign, sort of preparing the Prime
Speaker 1: Minister to speak after a potential defeat. Here headlines that
Speaker 1: we are saying that the DUP did not support Boris Johnson.
Speaker 1: Let's go back to the UK Parliament. The eyes to
Speaker 1: the right three hundred and eight, the nose to the
Speaker 1: left three hundred and twenty two, The eyes to the
Speaker 1: right three hundred eight, the nose to the left three
Speaker 1: hundred and twenty two. So the nose have it, the
Speaker 1: nose have it unlocked? The point you aller, Mr Jeremy Corbyn,
Speaker 1: thank you, mus to Speaker. On Saturday, this House emphatically
Speaker 1: rejected the Prime Minister's deal. Tonight, the houses you're too hasy,
Speaker 1: I'm not finished your tonight. The House has refused to
Speaker 1: be bounced into debating a hugely significant piece of legislation
Speaker 1: in just two days with barely any notice and an
Speaker 1: analysis of the economic impact of this bill. The Prime
Speaker 1: Minister is the author of his own misfortune. So I
Speaker 1: make this offer to him tonight, work with us, work
Speaker 1: with us, all of us, to agree a reasonable timetable.
Speaker 1: And I suspect this House will vote to debate, scrutinize,
Speaker 1: and I hope amend the detail of this bill that
Speaker 1: would be the sensible way forward. And that's the offer
Speaker 1: I make on behalf of the opposition tonight the point
Speaker 1: of order, the Prime Minister order. Let me let me
Speaker 1: say in response, Mrs speaking, how welcome it is even
Speaker 1: joyful that for the first time in this long saga,
Speaker 1: this House has actually accepted its responsibilities together, come together
Speaker 1: and embraced a deal. I could ratulate honorable members across
Speaker 1: the House on the scale of our collective achievement, because
Speaker 1: just a few weeks ago, hardly anybody believed that we
Speaker 1: could reopen other withdrawal agreement, let alone abolish the backstop
Speaker 1: that is indeed what they were sent. And certainly nobody
Speaker 1: thought that we just could secure the approval of the
Speaker 1: House for a new deal. And we should not. I
Speaker 1: overlook the significance of this moment, and I pay I
Speaker 1: pay particular tribute to those members of the House who
Speaker 1: were skeptical, and who had difficulties and diets, and who
Speaker 1: decided to place the national interest ahead of any other consideration.
Speaker 1: The MMR Speaker, I must express my disappointment that the
Speaker 1: House has again voted for delay rather than a timetable
Speaker 1: that would have guaranteed that the UK would be in
Speaker 1: a position to leave the EU on October thirty one
Speaker 1: with a deal, and we I face further uncertainty and
Speaker 1: the EU must now make up their minds over how
Speaker 1: to answer Parliament's request for a delay. In the first consequence,
Speaker 1: Mrs Speaker is that the Government must take the only
Speaker 1: responsible course and accelerate our preparations for a no deal outcome.
Speaker 1: But secondly, I will speak. I will speak to EU
Speaker 1: member states about their intentions until they have reached a decision,
Speaker 1: Until they reached us, I would say, we will pause
Speaker 1: this legislation and let me let me be clear, let
Speaker 1: me be clear. Our policy remains that we should not delay,
Speaker 1: that we should leave the EU on October one, and
Speaker 1: that is that is what I will say to the EU,
Speaker 1: and I will report back to the House and one
Speaker 1: way or another, we will leave the EU with this
Speaker 1: deal to which this House has just given it's a
Speaker 1: sense and I found and I found members across the
Speaker 1: House for that hard one agreement point of order. Mystery
Speaker 1: and Blackford, thank you, Mr Speaker. And I must say
Speaker 1: I feign the response of the Prime Minister quite extraordinary,
Speaker 1: because the facts of the martyred or the right honorable
Speaker 1: gentleman is entitled to raise a point of order and
Speaker 1: he's entitled to be her. Let's hear the right Honorable Member,
Speaker 1: and then we will expedite progress. Mry and Blackford give
Speaker 1: Mr Speak of the facts of the matter are. This
Speaker 1: is yet another humiliating defeat for the Prime Minister this evening,
Speaker 1: who has sought a real road through this extension, but
Speaker 1: also in terms of protecting Scotland's national interest. So what
Speaker 1: options but open to us the right Honorable gener But
Speaker 1: I have a sense that his question is largely rhetorical.
Speaker 1: I say that in no disobliging spirit, I do think
Speaker 1: the Right oren Generman needs by advice, or even if
Speaker 1: he does, he doesn't need it tonight. And so we'll
Speaker 1: leave it there for now, and we go even listening
Speaker 1: in no disobliging spirit. Carol Masser, But this is a
Speaker 1: little bit of a mess that we find ourselves in.
Speaker 1: We've been listening to a lot of back and forth
Speaker 1: there in the UK Parliament, Boris Johnson, the Prime Minister,
Speaker 1: winning one and losing one, but losing a big one
Speaker 1: in the sense of we don't know exactly what happens next. Yeah,
Speaker 1: that's exactly. So two votes happened. The first one rather
Speaker 1: quickly and that was basically the UK Parliament voting to
Speaker 1: accept his Brexit, Boris Johnson's Brexit bill. That was followed
Speaker 1: by another one and that's where Boris Johnson lost, and
Speaker 1: that was basically due fast track. Uh the Brexit law.
Speaker 1: We did hear from Boris Johnson still committed to it,
Speaker 1: but he also did say we now face further uncertainty.
Speaker 1: The European Union must now make up their minds. So
Speaker 1: that's basically where we want. Jeremy Corbyn, leader of the
Speaker 1: Labor Party, we did to hear from him. He says
Speaker 1: he wants a reasonable timetable. So that's kind of where
Speaker 1: we are at this moment. Dr Sam Natapoff has been
Speaker 1: kind enough to sit through uh, listening to the UK
Speaker 1: Parliament and stay with us, President of Empire Global Ventures
Speaker 1: on the phone from Washington, d C. You've worked around
Speaker 1: the world with different organizations. Um, based on these two
Speaker 1: votes and based on what you've been hearing, Sam, Now
Speaker 1: what we've just heard that Boris Johnson's first victory as
Speaker 1: Prime Minister spells the end of the of the United Kingdom.
Speaker 1: You just heard Scotland say, now that there's Brexit, we
Speaker 1: will seek independence again as we did a few years
Speaker 1: ago with a referendum, and this time they're likely to
Speaker 1: be successful. Boris Johnson has also created an institutional structure
Speaker 1: that puts a red line between Britain and Northern Ireland.
Speaker 1: And so there is a possible future where Northern Ireland
Speaker 1: is no longer part of the United Kingdom. So, just
Speaker 1: to understand what's happened in the last ten minutes, Boris
Speaker 1: Johnson got his first victory which may have cost him
Speaker 1: the European king of the United Kingdom. And so what
Speaker 1: do you imagine happens next? What is Europe's play in
Speaker 1: all of this? The EU has been more or less
Speaker 1: letting this play out. You know, they've largely you know,
Speaker 1: they've weighed in it at various times. Boris Johnson saying
Speaker 1: Prime Minister Boris Johnson saying he will go back to
Speaker 1: the EU and then report back to the Parliament. What
Speaker 1: do you imagine the EU stances here. The U stances
Speaker 1: has been very consistent from the beginning. They want a
Speaker 1: clear signal from Britain about how Brexit is to be prosecuted.
Speaker 1: And then once Britain has sent that clear message that
Speaker 1: you will decide at this point, I would not surprise
Speaker 1: me that you will give Britain a few more a
Speaker 1: few more minutes to manage its to manage its internal issues.
Speaker 1: Now that the Parliament has asked for a period of
Speaker 1: time UH to go through this, But that raises another
Speaker 1: key issue. It's not just that this is going to
Speaker 1: take longer. It's that the Parliament is going to scrutinize
Speaker 1: the agreement and propose amendments. This is exactly the same
Speaker 1: thing that's happening in the United States right now, where
Speaker 1: the executive branch, with President Trump is saying that the
Speaker 1: legislative branch oversight of him is functioning as a lynching.
Speaker 1: What we're having is the executive Boris Johnson fighting it
Speaker 1: out with the Parliament, and then Boris Johnson is going
Speaker 1: to go to Brussels and tell the European Union really
Speaker 1: you should give us more time, but I don't mean
Speaker 1: it well. And it's interesting too, and I you know,
Speaker 1: again going back to our Bloomberg Live blog, you know,
Speaker 1: there was no mention of pulling the bill. There's no
Speaker 1: mention of an election, which I believe Boris Johnson had
Speaker 1: said he would maybe do if he lost, um this vote,
Speaker 1: So no mention of that. Um. Yeah, I think it's staging.
Speaker 1: I think what you said and I kind of had
Speaker 1: to pause after you said it that you know, the undoing.
Speaker 1: I feel like it's the final undoing of the British
Speaker 1: Kingdom in terms of how we know it, or have
Speaker 1: known it for so long. The the United Kingdom, the
Speaker 1: British monarchy and Empire was an analog construction. What we're
Speaker 1: seeing now is a digital a digital extrication of of
Speaker 1: smaller units that can efficiently or less efficiently functioned within
Speaker 1: a wider market. Old traditions are being set aside, one
Speaker 1: of them, one of them has just been unraveled in
Speaker 1: two hour ears. That's an extraordinary thing we heard from
Speaker 1: Scotland and uh, that will go into history books about
Speaker 1: Boris Johnson and David Cameron who started this right And
Speaker 1: so let's recap sort of where we are. We've had
Speaker 1: two votes in the UK Parliament today, one essentially the
Speaker 1: Parliament really for the first time, supporting a deal put
Speaker 1: forth by the Prime Minister, in this case Boris Johnson
Speaker 1: to leave the EU. Subsequently, a vote against the timeline
Speaker 1: that Prime Minister Boris Johnson had recommended and put forth.
Speaker 1: Where that leaves us, interestingly, is not necessarily where we
Speaker 1: expected to be, Carol, because Boris Johnson had made noises
Speaker 1: about either crashing out on October one, which, by the way,
Speaker 1: that's next week. It's sort of interesting to think, at
Speaker 1: least for me, I thought, oh wow, oct one really
Speaker 1: is coming up very soon. Um. But also this idea
Speaker 1: that he would call for a general election. He has
Speaker 1: done none of those things yet. He has essentially said
Speaker 1: we're going to look for an extension, a short extension
Speaker 1: to get this deal that Parliament has approved done. Now
Speaker 1: that is contingent on a number of things, including as
Speaker 1: Dar you Sam natapof laid out, the EU getting on
Speaker 1: board with this notion of agreeing to a deal and
Speaker 1: agreeing to some length of extension, and we don't know
Speaker 1: exactly what that is going to look like. Sam, I
Speaker 1: am curious. So what does this mean? What is the
Speaker 1: new world order going forward? With the UK potentially resume
Speaker 1: out of the European block, maybe Northern are Ireland going
Speaker 1: off on its own as well. Um how does that
Speaker 1: change that global landscapes, particularly over in Europe, well Scotland
Speaker 1: and Northern Ireland. UM would would develop their own national
Speaker 1: identities and and proclaim them. But the loss of Britain
Speaker 1: from the European Union and the loss of London as
Speaker 1: the European financial capital that has already sent shock waves
Speaker 1: around the world. Um. So as a result of this,
Speaker 1: New York City has emerged as the undisputed financial capital,
Speaker 1: which has benefited US economy tremendously. There has been tremendous
Speaker 1: capital flight and human capital flight from Britain to the
Speaker 1: United States and the financial sector. But it's these It
Speaker 1: is this voluntary decision by the people of Great Britain
Speaker 1: to leave the European Union that has set all of
Speaker 1: this in motion. Seventeen point four million Britons said they
Speaker 1: wanted to leave, and today for the first time, the
Speaker 1: House of Commons passed the bill that will allow them
Speaker 1: to do just that. A right, Well, we're very grateful
Speaker 1: to you Dr Sam Natapop, president of Empire Global Ventures. Unwittingly,
Speaker 1: Carol signed up to essentially be a guest host with
Speaker 1: us for his first hour of the Brexit negotiations. Everything
Speaker 1: that's happening in the UK really really value his expertise.
Speaker 1: He's been a great voice for us all along the way,
Speaker 1: and we're not done yet because we know we'll have
Speaker 1: him back as this continues to take some twists and turns.
Speaker 1: All right, let's get to roll the national news headlines
Speaker 1: for that. Let's check in once again with