WEBVTT - Bloomberg Businessweek Weekend - September 30th, 2022 0:00:01.040 --> 0:00:05.440 This is Bloomberg Business Week inside from the reporters and 0:00:05.559 --> 0:00:09.200 editors who bring you America's most trusted business magazine, plus 0:00:09.240 --> 0:00:13.200 global business finance and tech news as it happened. Sloomberg 0:00:13.240 --> 0:00:16.759 Business Week with Carol Messier and Bloomberg Quick Takes Tim 0:00:16.800 --> 0:00:21.360 Stinovic on Bloomberg Radio. Hi, everyone, welcome to the weekend 0:00:21.480 --> 0:00:24.520 edition of Bloomberg Business Week. Well, this past week definitely 0:00:24.520 --> 0:00:28.120 marked by volatility and stocks, yes, of course, also though 0:00:28.200 --> 0:00:31.479 big time in treasuries and currencies, in particular the U 0:00:31.520 --> 0:00:33.960 S dollars still going strong though, and that is the 0:00:34.000 --> 0:00:36.120 subject of our cover story. We'll get to that in 0:00:36.120 --> 0:00:38.720 just a moment. Also ahead, why the US is bracing 0:00:38.720 --> 0:00:42.080 for a new round of divisive Supreme Court clashes. We'll 0:00:42.120 --> 0:00:43.720 also talk with the author of a new book on 0:00:43.760 --> 0:00:46.680 the Proud Boys and the growing threat of extremism here 0:00:46.680 --> 0:00:49.680 in America. Plus, we got some great insight from America 0:00:49.760 --> 0:00:53.360 Online co founder and startup investor Steve Case. He talked 0:00:53.400 --> 0:00:55.240 with us about where the nation will find its next 0:00:55.280 --> 0:00:58.640 wave of tech innovators. You might be surprised, and we're 0:00:58.680 --> 0:01:00.680 gonna introduce you to a brand new program from our 0:01:00.680 --> 0:01:03.680 friends at Bloomberg quicktake. It's called Crypto I r L 0:01:03.800 --> 0:01:05.920 and it's co hosted by none other than you, Tim. 0:01:06.200 --> 0:01:08.880 We've got a great season coming up. Katie Greifeld is 0:01:08.920 --> 0:01:10.640 the co host of it, and we sat down with 0:01:10.680 --> 0:01:13.760 Melton Demors in our first episode. She's the chief strategy 0:01:13.800 --> 0:01:16.399 officer of coin Shares. We asked her if the crypto 0:01:16.440 --> 0:01:19.640 industry o's investors an apology for the months long downturn 0:01:19.720 --> 0:01:21.920 in digital assets. But you've got to stick around to 0:01:21.959 --> 0:01:23.759 hear what she has to say. All of that to come. 0:01:23.840 --> 0:01:26.839 We begin with the cover story in the magazine's finance section. 0:01:27.240 --> 0:01:29.760 It's all about the unstoppable US dollar and why the 0:01:29.840 --> 0:01:33.800 US Federal reserves focus on taming inflation is inflicting a 0:01:33.840 --> 0:01:36.200 world of pain on other economies. We've talked about this 0:01:36.240 --> 0:01:38.479 a lot on air, from More Return to Bloomberg News, 0:01:38.520 --> 0:01:42.120 Bond and Efex reporter Liz McCormick. The whole world has 0:01:42.200 --> 0:01:45.000 this major inflation problem, right, of course, that's why the 0:01:45.000 --> 0:01:47.319 Fed is focused on tightening, and that's why we have 0:01:47.400 --> 0:01:49.920 such a strong dollar, among some other reasons. But all 0:01:49.960 --> 0:01:53.520 these other countries have this historic inflation as well, and 0:01:53.880 --> 0:01:57.920 their currency is weakening, actually lifts inflation, you know, because 0:01:58.000 --> 0:02:00.800 it brings up in poor prices is and it's it's 0:02:00.840 --> 0:02:03.360 inflation are So it's kind of the exact thing they 0:02:03.400 --> 0:02:05.560 don't want. You know, in the old days, we'd have 0:02:05.600 --> 0:02:08.600 currency wars. Everyone wanted a stronger currency. Now people would 0:02:08.639 --> 0:02:11.200 like a weaker one, you know, but every everybody can't 0:02:11.240 --> 0:02:14.040 you know, currency there's a pairs, right, so somebody's gotta win, 0:02:14.080 --> 0:02:16.760 and the dollars winning all over. Well, and it's interesting too, 0:02:16.800 --> 0:02:19.680 You're right. I feel like the dollar, it's not just 0:02:19.720 --> 0:02:22.480 the financial markets, but it's such a like geopolitical I 0:02:22.520 --> 0:02:26.240 feel like instrument if you will. J. Powell and the 0:02:26.360 --> 0:02:28.880 FOMC spent a lot of time, do they in terms 0:02:28.919 --> 0:02:31.360 of looking at the dollar and the impact we talked. 0:02:31.440 --> 0:02:34.600 You know, we've had the Rettamester earlier coming out making 0:02:34.600 --> 0:02:38.320 a comment and saying basically, um, you know, we gotta 0:02:38.400 --> 0:02:41.920 keep on raising rates even in recession. So you do 0:02:41.960 --> 0:02:44.400 wonder what that Fed is like, Well, sorry, guys, we've 0:02:44.400 --> 0:02:47.600 gotta keep doing this. We don't care what happens. Yeah, exactly, 0:02:47.680 --> 0:02:49.600 I mean they you know there, I think it was 0:02:49.840 --> 0:02:53.680 m the Fed's Boston who, similar to Mester, was talking 0:02:53.720 --> 0:02:56.320 about you know, we have to stay the course on inflation, 0:02:56.320 --> 0:02:58.880 and were like, we're aware of what's going on. You know, 0:02:58.919 --> 0:03:02.480 the UK markets fit reverberated. It could call some weakness, 0:03:02.480 --> 0:03:04.959 but basically we've got a job to do right. Inflation 0:03:05.040 --> 0:03:08.160 is too high. We have to plow onward with raising rates. 0:03:08.200 --> 0:03:10.720 So it was Stephen Roach I was talking to from 0:03:11.360 --> 0:03:14.720 you guys go and he said to me, yeah, Liza, 0:03:14.800 --> 0:03:17.000 reminds me a Connelly. You know, these guys have been 0:03:17.040 --> 0:03:20.080 around for a long time, former Treasury secretary and he 0:03:20.120 --> 0:03:22.800 famously said, listen to the dollars are currency, and you're 0:03:22.800 --> 0:03:25.560 a problem. And this is, you know, a super good 0:03:25.600 --> 0:03:28.200 case of that, because you know, and you know, the 0:03:28.240 --> 0:03:30.880 FED is feeling bad because they were so far behind, right, 0:03:31.320 --> 0:03:34.040 you know, kind of cut rates and stuff too low, 0:03:34.080 --> 0:03:36.760 and so I don't I think they're like, listen, we 0:03:36.920 --> 0:03:39.840 just can't risk anymore slip ups, right, so we gotta 0:03:39.920 --> 0:03:42.280 keep tightening. Liz, I do feel like we have a 0:03:42.320 --> 0:03:45.480 theme today because we talked earlier about that the FED. 0:03:45.720 --> 0:03:49.320 You know, okay, if we're inflicting pain on investors in 0:03:49.360 --> 0:03:52.760 the in the in the public markets, financial markets, because 0:03:52.800 --> 0:03:54.720 that will help them in their inflation fight and that's 0:03:54.760 --> 0:03:57.280 the same thing, right, A strong dollar could actually help 0:03:57.280 --> 0:04:01.320 them in their fight against inflation. Can you explain that well, right, 0:04:01.360 --> 0:04:04.000 because a couple of things. Um, people usually say the 0:04:04.080 --> 0:04:07.640 US is exporting inflation, right, but also think about US companies. 0:04:07.680 --> 0:04:09.440 You were talking about Meta and all the companies, they 0:04:09.560 --> 0:04:11.360 all do a lot abroad, So in a sense it 0:04:11.440 --> 0:04:13.480 slows the economy. It's a little bit of a headwind. 0:04:13.600 --> 0:04:16.240 Are good. You know, these companies selling abroad, their products 0:04:16.240 --> 0:04:18.920 are a little more costly. So in general, it adds 0:04:18.960 --> 0:04:21.960 to what we know. The FED wants to tighten financial conditions, 0:04:22.000 --> 0:04:26.200 which can happen through higher rates, lower you know, wider 0:04:26.240 --> 0:04:29.920 credit spreads, lower equity valuations, and a stronger dollar. So 0:04:30.360 --> 0:04:32.839 it is one of the kind of I call it 0:04:33.000 --> 0:04:36.120 like an amalgam of things that are part of financial conditions. 0:04:36.160 --> 0:04:38.240 But a stronger dollar does do that kind of a 0:04:38.240 --> 0:04:40.600 headwind to growth, and that's what the Fed's trying to do, right, 0:04:40.680 --> 0:04:43.279 slow things down. Yeah, I think we got the message. 0:04:43.960 --> 0:04:46.839 The markets certainly have. I think the question is, you know, 0:04:46.880 --> 0:04:49.520 how much more tightening does there actually need to be 0:04:49.600 --> 0:04:52.600 to get inflation under control? What about from the perspective 0:04:52.600 --> 0:04:55.719 of developing economies, and paying back debt and the effect 0:04:55.760 --> 0:04:58.880 that this has on the entire world. Well, yeah, that's 0:04:58.920 --> 0:05:01.800 a real problem because is um you know, if your 0:05:01.920 --> 0:05:04.040 rates are higher because part of some of these countries 0:05:04.080 --> 0:05:05.960 have had to step up the pace of their interest 0:05:06.080 --> 0:05:08.200 rate hikes, right to try to keep up with the Fed. 0:05:08.240 --> 0:05:09.880 I mean, like we said that many of them have 0:05:09.960 --> 0:05:13.240 their own inflation problem but have had to almost try 0:05:13.360 --> 0:05:16.800 to kind of keep up, so higher rates. Mean, and 0:05:16.800 --> 0:05:19.119 it's happening to the US too. You're all paying back 0:05:19.360 --> 0:05:22.200 debt at a higher level. Um, But if they have 0:05:22.240 --> 0:05:24.400 to pay back in dollars like you're getting to that, 0:05:24.760 --> 0:05:27.039 it's harder to get that many dollars, right, So it's 0:05:27.120 --> 0:05:30.400 costing them more to pay if they have dollar denominated debt, 0:05:30.480 --> 0:05:33.680 so it can go in a various tentacles that hurt 0:05:33.760 --> 0:05:35.680 them for sure. Do we have to be worried, Liz 0:05:35.680 --> 0:05:37.560 about you know, we've seen this in the past, right 0:05:37.600 --> 0:05:40.640 you talked about history, Um was it back in eighty five? 0:05:41.000 --> 0:05:42.920 In your story you talk about the Plaza court. I mean, 0:05:42.960 --> 0:05:46.360 do we have to be worried though about other nations 0:05:46.960 --> 0:05:52.360 working in agreement together to counter that strong US dollar? Well, 0:05:52.400 --> 0:05:55.320 of course some are trying in Unison's like you know, 0:05:55.360 --> 0:05:57.040 you guys have talked many times about the bank in 0:05:57.120 --> 0:05:59.920 Japan which had came in and intervened kind of uni 0:06:00.040 --> 0:06:03.640 laterally trying to slow the weakness in their currency. Other 0:06:03.720 --> 0:06:07.960 countries are doing some mild intervention, but you know, not 0:06:08.000 --> 0:06:11.240 to be like like the US is everything. But for 0:06:11.400 --> 0:06:14.880 a major intervention to really have heft, the U s 0:06:14.920 --> 0:06:17.760 would have to be involved. Were you know, so much 0:06:17.800 --> 0:06:20.719 of you know, FX trading, part of it is priced 0:06:20.760 --> 0:06:23.480 in dollars, So I mean, other countries could try to 0:06:23.560 --> 0:06:27.279 coordinate a little bit more, but what it seems like 0:06:27.400 --> 0:06:29.359 and you know, never say never, but the kind of 0:06:29.480 --> 0:06:33.360 nine five style plaza cord, you know, it isn't in 0:06:33.400 --> 0:06:35.679 the cards now. That was Bloomberg News Bond and FX 0:06:35.680 --> 0:06:39.200 reporter Liz McCormick on it. This week's cover story coming up, Well, 0:06:39.200 --> 0:06:41.760 the strong dollar, yep, it's a big macro issue for 0:06:41.800 --> 0:06:44.600 the world. However, not necessarily top of mind for one 0:06:44.640 --> 0:06:47.200 mayor back here in the United States. He is more 0:06:47.200 --> 0:06:49.480 concerned in making sure his city is among the country's 0:06:49.520 --> 0:06:53.560 most desirable destinations for businesses. That's coming up next. You're 0:06:53.560 --> 0:07:04.919 listening to Bloomberg Business Week. This is Bloomberg. This is 0:07:04.960 --> 0:07:08.839 Bloomberg Business Week with Carol Messer and Bloomberg Quick Takes 0:07:08.920 --> 0:07:14.120 Tim Stinnoby from Bloomberg Radio. We continue to spend a 0:07:14.120 --> 0:07:16.240 lot of time, and rightfully so, talking about the big 0:07:16.240 --> 0:07:19.840 macro themes and realities facing our global economy. What we 0:07:20.000 --> 0:07:23.600 find always helpful though, in understanding our world is also 0:07:23.760 --> 0:07:26.320 checking out what is going on in our global cities, 0:07:26.600 --> 0:07:28.920 and in particular, this week we checked out our U 0:07:28.960 --> 0:07:31.800 S cities. Yeah, we zeroed in on the fourteenth largest 0:07:31.800 --> 0:07:35.280 city in the US. We're talking Columbus, Ohio. It's Mayor 0:07:35.440 --> 0:07:38.680 Andrew Ginther has participated in the Bloomberg Harvard City Leadership 0:07:38.720 --> 0:07:41.760 Initiative along with other selected global mayors. If you're not 0:07:41.800 --> 0:07:45.480 familiar with that program, it's a collaboration between Bloomberg Philanthropies, 0:07:45.520 --> 0:07:48.880 Harvard Kennedy School, and Harvard Business School. Michael her Bloomberg 0:07:48.960 --> 0:07:51.560 is the founder of Bloomberg Philanthropies and Bloomberg LP, which 0:07:51.560 --> 0:07:54.120 is of course the parent company of Bloomberg Business Week 0:07:54.120 --> 0:07:57.640 and Bloomberg Radio. Mayor Ginther City recently made headlines when 0:07:57.720 --> 0:08:01.840 Intel broke ground on a new semiconductor may facturing facility nearby, 0:08:01.880 --> 0:08:04.240 and we wanted to know why big business is paying 0:08:04.280 --> 0:08:07.640 so much attention to Ohio's capital. We've had a couple 0:08:07.680 --> 0:08:11.400 of incredible years with respect to economic development, job creation. 0:08:11.440 --> 0:08:14.440 Obviously a lot of focuses on Intel and the huge 0:08:14.440 --> 0:08:16.160 impact is going to have there, But if you take 0:08:16.160 --> 0:08:18.600 a look at the last ten years the economic growth 0:08:18.600 --> 0:08:23.960 and job creation, great companies, Google, Hyperion, Facebook, and obviously 0:08:24.000 --> 0:08:28.880 Intel really is helping to drive not only Ohio but 0:08:28.960 --> 0:08:33.120 the nation's economy. And really excited about the future of growth. 0:08:33.280 --> 0:08:36.360 We want to be the most prosperous region in the country, 0:08:36.679 --> 0:08:38.920 but we want that to be dynamic and inclusive. We 0:08:38.960 --> 0:08:42.520 want the growth and the prosperity to really involve everybody. 0:08:42.679 --> 0:08:44.520 You and all the other mayors across the United States, 0:08:44.600 --> 0:08:46.520 tell me what is it about you? And I was 0:08:46.559 --> 0:08:48.280 doing a little bit of research that you guys have 0:08:48.320 --> 0:08:50.760 never seen a dip in your population since its founding. 0:08:51.040 --> 0:08:53.320 What is it that continues to bring people there, and 0:08:53.360 --> 0:08:55.040 what do you think about in terms of strategy to 0:08:55.040 --> 0:08:57.280 make sure that that doesn't change. You know, I think 0:08:57.320 --> 0:08:59.920 it's because we're really committed to being smart and open. 0:09:00.160 --> 0:09:02.080 We want to welcome the best and brightest, not just 0:09:02.120 --> 0:09:05.240 from around the state, but the country in the world, 0:09:05.600 --> 0:09:08.680 a place that is is welcoming, accepting. UH, that we 0:09:08.679 --> 0:09:10.800 embrace our diversity. You know, we have a hundred percent 0:09:10.840 --> 0:09:13.560 score from the Human Rights Campaign and BT is always 0:09:13.600 --> 0:09:15.480 ranked US as one of the best places for black 0:09:15.520 --> 0:09:18.319 families to raise children. So we think that that's part 0:09:18.400 --> 0:09:21.720 of it. But also UH, the institutions of higher education. 0:09:21.760 --> 0:09:25.240 That pipeline a hundred and thirty five thousand students and 0:09:25.360 --> 0:09:28.840 undergraduate study, you know, fifty different colleges in the universities 0:09:28.880 --> 0:09:31.800 puts US in the top ten per capita for undergraduate 0:09:31.800 --> 0:09:34.559 students in America. I think that pipeline of talent also 0:09:34.679 --> 0:09:37.320 makes it a place where companies want to come and grow. 0:09:37.760 --> 0:09:39.240 Do you employees want to be there? Though? And I 0:09:39.280 --> 0:09:42.080 asked in the context of the overturning of Roe v. Wade, 0:09:42.280 --> 0:09:44.320 And it's a question that I've posed to mayors and 0:09:44.480 --> 0:09:47.920 other states that do have very restrictive laws. Now that 0:09:47.960 --> 0:09:50.000 Roe v. Wade has been overturned. Ohio is one of 0:09:50.040 --> 0:09:53.319 those states. Abortion illegal after a heartbeat is detected, which 0:09:53.360 --> 0:09:56.000 canna be about six weeks before many women know they're pregnant. 0:09:56.200 --> 0:09:59.040 Are you concerned that that will prevent employees from wanting 0:09:59.040 --> 0:10:01.080 to relocate there. It's one of those things that we 0:10:01.120 --> 0:10:04.360 continue to raise with our state legislature and state wide 0:10:04.400 --> 0:10:07.040 office holders and members of Congress as well. I mean, 0:10:07.679 --> 0:10:11.439 we know that for Columbus to continue to drive Ohio's 0:10:11.480 --> 0:10:16.400 economic recovery and grow our economy as a community, UH, 0:10:16.440 --> 0:10:19.720 we need to be welcoming and we need to be 0:10:19.840 --> 0:10:22.320 able to attract people from not just around the state, 0:10:22.360 --> 0:10:25.360 but the country in the world. UH. And we believe 0:10:25.400 --> 0:10:28.280 that the jobs decision and then the actions taken by 0:10:28.400 --> 0:10:32.240 the state legislature can have a chilling effect on talent. 0:10:32.440 --> 0:10:35.000 And so it's critically important that we continue to advocate 0:10:35.040 --> 0:10:38.600 and push to make sure that central Ohio, Columbus in particular, 0:10:39.200 --> 0:10:42.880 is welcoming, accepting safe place for people from all walks 0:10:42.880 --> 0:10:44.640 of life. You know, I think what you get up 0:10:44.640 --> 0:10:46.520 every morning, there's probably so much on your plate. What 0:10:46.679 --> 0:10:48.800 is top of mind for you? I think the next 0:10:48.800 --> 0:10:51.520 ten or fifteen years in Columbus will determine it will 0:10:51.559 --> 0:10:54.000 be some of the most consequential in our city's history. 0:10:54.040 --> 0:10:55.760 I think a hundred years from now, we'll look back 0:10:55.800 --> 0:10:58.560 at this ten or fifteen years. Did we embrace growth 0:10:59.000 --> 0:11:02.160 did we go about at it in a thoughtful, dynamic, 0:11:02.200 --> 0:11:05.640 and inclusive way. Housing has been a huge issue. We 0:11:05.679 --> 0:11:08.600 haven't had enough housing units coming to market since before 0:11:08.640 --> 0:11:11.679 the Great Procession, and that issue is just greatly compounded 0:11:11.760 --> 0:11:13.839 over the last twelve years and now with Intel and 0:11:13.920 --> 0:11:16.480 so many others. We grew by a hundred thousand people 0:11:16.960 --> 0:11:18.840 in ten years. We're going to grow by two hundred 0:11:18.840 --> 0:11:23.000 thousand probably in the next ten and so we need housing. 0:11:23.000 --> 0:11:26.280 And luckily we have the public sector, the private sector, 0:11:26.600 --> 0:11:30.520 higher education, everyone working together to make sure housings are 0:11:30.679 --> 0:11:32.760 number one priority. I gotta tell you, Carol, we were 0:11:32.880 --> 0:11:36.240 driving through Columbus. Yeah you got you know this area? Well, yeah, 0:11:36.280 --> 0:11:38.600 my wife is from Cincinnati. We drove back and forth 0:11:38.640 --> 0:11:42.080 between Cincinnati. Recently, we're driving through Columbus just a few 0:11:42.080 --> 0:11:44.880 weeks ago, and she said, this is unbelievable. She went 0:11:44.920 --> 0:11:47.720 to Ohio State. She said, all of this when I 0:11:47.760 --> 0:11:50.319 was in college was corn And I mean, I'm talking 0:11:50.360 --> 0:11:54.840 about areas that are now homes, office buildings, new highways 0:11:54.880 --> 0:11:57.079 that have been built. How do you do this though 0:11:57.120 --> 0:12:00.199 in a sustainable way. You did mention that housing even 0:12:00.200 --> 0:12:02.000 an issue, and we're talking about a place that that 0:12:02.080 --> 0:12:04.640 does have quite a bit of land. Yeah, it's really 0:12:04.679 --> 0:12:09.080 important that we act aggressively and bring public in private. 0:12:09.120 --> 0:12:10.800 One of the things I've called for and might say 0:12:10.840 --> 0:12:13.080 the city this year was to double the number of 0:12:13.160 --> 0:12:15.240 units coming to market at every price point, because we 0:12:15.280 --> 0:12:18.240 need housing at every price point every year for the 0:12:18.280 --> 0:12:21.959 next fifteen years. And collectively invest a billion dollars into 0:12:21.800 --> 0:12:24.280 two housing over the next fifteen years so that we 0:12:24.360 --> 0:12:28.120 can grow that way, you know, dynamically, but inclusively. And 0:12:28.200 --> 0:12:30.240 thinking about that lens of equity, how do we make 0:12:30.280 --> 0:12:32.600 sure that the people who have made our city and 0:12:32.600 --> 0:12:35.400 our neighborhoods so special and so great are able to 0:12:35.440 --> 0:12:38.120 age in place. Well, how has your kind of broad 0:12:39.000 --> 0:12:41.000 I think I should say, not rethink, but think about 0:12:41.040 --> 0:12:44.640 the economy, certainly your economy specifically, how has it changed 0:12:44.720 --> 0:12:47.480 post pandemic or how has the pandemic impacted it? Well, 0:12:47.480 --> 0:12:50.640 it's it's a real challenge. So only about one percent 0:12:50.679 --> 0:12:53.720 of local governments in America are funded by income tax. 0:12:54.320 --> 0:12:57.360 Eight percent of our general fund cops, firefighters, public health, 0:12:57.360 --> 0:12:59.920 folks on the front lines, those people are funded by 0:13:00.000 --> 0:13:03.400 income tax revenue. And remote work clearly has turned things 0:13:03.400 --> 0:13:05.120 on its head, you know, whether a third of folks 0:13:05.120 --> 0:13:07.520 are going to be returning, may not return at all, 0:13:07.600 --> 0:13:10.280 maybe in a hybrid. So that's a challenge for us, 0:13:10.280 --> 0:13:13.240 and continuing to figure out how we can plan for 0:13:13.280 --> 0:13:15.520 the future and invest as we grow as a city 0:13:16.320 --> 0:13:19.000 when income tax revenue is so up in the air. 0:13:19.040 --> 0:13:21.040 So we're working with the governor, in the state legislature 0:13:21.160 --> 0:13:24.680 and others, you know, not rushing into anything, but looking 0:13:24.679 --> 0:13:28.040 at the data and how you know income tax revenue 0:13:28.240 --> 0:13:31.280 and the taxation system will overall has been impacted by 0:13:31.320 --> 0:13:34.440 the pandemic because we know that the cities in Ohio 0:13:34.520 --> 0:13:37.559 drive Ohio's economies and and folks understand that regardless of 0:13:37.600 --> 0:13:39.960 their party, and so for the cities to continue to 0:13:40.000 --> 0:13:42.000 grow and thrive, they've got to be attractive places for 0:13:42.000 --> 0:13:44.640 people to live. So if you could enact something new 0:13:44.679 --> 0:13:47.080 when it comes to income tax policy, what would it 0:13:47.120 --> 0:13:51.840 be I think looking specifically at the data and seeing 0:13:51.880 --> 0:13:54.480 how folks who are working in a hybrid or maybe 0:13:54.480 --> 0:13:56.920 come to the office a few times a week. You know, 0:13:57.240 --> 0:14:01.320 how that revenue could be shared amongst world different municipalities 0:14:01.360 --> 0:14:05.080 in partnership with the state, UH functional ownership of some 0:14:05.200 --> 0:14:07.680 of the basic city services and The most important thing 0:14:07.800 --> 0:14:10.120 right now is let's not rush into anything. Let's not 0:14:10.200 --> 0:14:13.880 make decisions until we have good data, good information to 0:14:14.000 --> 0:14:16.280 base the rationale and decision making. And we're working with 0:14:16.320 --> 0:14:19.320 our folks already with that are major employers across the 0:14:19.360 --> 0:14:22.120 state as well, because they need great cities to attract 0:14:22.200 --> 0:14:25.560 top talent as well. That was Columbus Ohio Mayor Andrew Ginther. 0:14:25.760 --> 0:14:28.640 He's a staple of the Bloomberg Harvard City Leadership initiative. 0:14:28.680 --> 0:14:32.120 It's a collaboration between Bloomberg philanthropist, Harvard Kennedy School, and 0:14:32.280 --> 0:14:34.520 Harvard Business School. Well, as you just heard, we touched 0:14:34.560 --> 0:14:37.560 on the Supreme Courts rov weight reversal with Mayor Ginther 0:14:38.000 --> 0:14:40.120 still had on Bloomberg Business Week a story in the 0:14:40.160 --> 0:14:43.000 magazine about how the US Justices are about to get 0:14:43.000 --> 0:14:45.560 back to work this coming week with several other highly 0:14:45.600 --> 0:14:48.480 divisive cases on the docket. A breakdown of what to 0:14:48.560 --> 0:14:51.200 expect from the High Courts new term. Next, this is 0:14:51.240 --> 0:15:00.760 Bloomberg broadcasting from the financial capital of the World, Bloomberg 0:15:00.800 --> 0:15:03.560 You Love in Frio in New York to Washington, d C. 0:15:03.760 --> 0:15:08.480 Bloomberg to Boston, Bloomberg one oh six one to San Francisco, 0:15:08.560 --> 0:15:12.480 Bloomberg nine sixty to the country, Sirius XM Chado one nineteen, 0:15:12.640 --> 0:15:15.800 and around the globe, the Bloomberg Business app and Bloomberg 0:15:15.880 --> 0:15:21.120 Radio dot Com. This is Bloomberg business Week On Monday. 0:15:21.160 --> 0:15:23.520 The U Supreme Court is back in session and on 0:15:23.640 --> 0:15:27.320 the docket cases covering everything from the right to vote, jerrymandering, 0:15:27.400 --> 0:15:30.360 affirmative action, and also gay rights. There's a variety of 0:15:30.360 --> 0:15:32.680 topics to him. A common threat among them maybe the 0:15:32.760 --> 0:15:35.720 likely clashes among those who sit on America's highest court 0:15:35.840 --> 0:15:38.360 and the millions of people their decisions will affect. This 0:15:38.440 --> 0:15:40.480 story is in the Remark section of the new issue 0:15:40.480 --> 0:15:43.160 of Bloomberg business Week, and the editor of Bloomberg Business Week, 0:15:43.240 --> 0:15:45.920 Joe Webber, joins us once again along with Bloomberg New 0:15:45.960 --> 0:15:48.680 Supreme Court reporter Greg Store. There may not be a 0:15:48.760 --> 0:15:51.440 single case quite as big as the Dob's case that 0:15:51.520 --> 0:15:55.080 overruled the constitutional right to abortion, but we're gonna have 0:15:55.120 --> 0:15:59.560 a huge college affirmative action fight coming up on October one. 0:15:59.680 --> 0:16:03.200 There are a couple of very big voting cases involving 0:16:03.560 --> 0:16:08.240 partisan jerrymandering and so called racial gerrymandering. We've got cases 0:16:08.320 --> 0:16:12.080 involving gay rights, and whether people have a business owners 0:16:12.080 --> 0:16:14.920 have a free speech right too to say I don't 0:16:14.960 --> 0:16:18.200 want to take part in the same sex wedding. All 0:16:18.240 --> 0:16:21.720 these things are the kind of cultural issues that you know, 0:16:21.800 --> 0:16:25.280 divide the country and divide the court increasingly in a 0:16:25.280 --> 0:16:28.960 conservative way. So, Greg, what's the one that you think 0:16:29.080 --> 0:16:32.040 is going to be Probably, well, it's back up here, right, 0:16:32.160 --> 0:16:35.240 Like we've had this sort of court that was a 0:16:35.280 --> 0:16:38.880 little bit more balanced in decisions. What are the decisions, 0:16:39.240 --> 0:16:41.080 you know, the cases that you kind of just rattled 0:16:41.080 --> 0:16:44.720 off there, where's the power imbalanced? Start to look like, well, 0:16:45.000 --> 0:16:47.800 you know, you look at the Affirmative Action case for example, 0:16:48.040 --> 0:16:51.600 that is actually two cases before the Supreme Court, one 0:16:51.640 --> 0:16:55.200 involving Harvard, one involving the University of North Carolina. And 0:16:55.360 --> 0:16:58.800 this case takes direct These appeals take direct aim at 0:16:58.880 --> 0:17:01.720 and two thousand three Supreme Court decision that reaffirmed that 0:17:01.840 --> 0:17:05.040 universities can use race as an admissions factor for the 0:17:05.040 --> 0:17:08.800 sake of enhancing diversity on campus. And that's something that 0:17:09.040 --> 0:17:12.640 the large majority of selective universities do. They say, if 0:17:12.640 --> 0:17:15.679 you overturn that, uh, it's going to have a devastating 0:17:15.720 --> 0:17:19.400 effect on their ability to make sure there's a significant 0:17:19.480 --> 0:17:23.120 number of black and Hispanic and Native American students on campus. 0:17:23.720 --> 0:17:26.800 You know, that's a case where you can see this 0:17:26.920 --> 0:17:31.200 court's change of membership. The three Trump appointees who made 0:17:31.240 --> 0:17:33.280 the court more conservative. You can see that that that 0:17:33.320 --> 0:17:35.320 they're very likely going to make a difference. It's a 0:17:35.359 --> 0:17:38.080 case actually where Chief Justice John Roberts, who we we 0:17:38.119 --> 0:17:40.000 know in some cases has not been willing to go 0:17:40.040 --> 0:17:42.879 as far as some of those conservative colleagues on this issue. 0:17:43.040 --> 0:17:45.679 He's kind of been in the vanguard saying, um, I 0:17:45.680 --> 0:17:48.680 believe in a color blind constitution. The constitution doesn't permit 0:17:48.880 --> 0:17:52.440 racial discrimination, and he has suggested he sees these race 0:17:52.520 --> 0:17:56.600 conscious admissions as racial discrimination. What's interesting there, though, is 0:17:56.720 --> 0:17:58.840 what we learned last time is that Roberts has maybe 0:17:58.880 --> 0:18:01.320 his own man on this court. That you've got several 0:18:01.359 --> 0:18:03.679 justices to the to the right of him and several 0:18:03.720 --> 0:18:06.119 to the left, and that also, you know, you have 0:18:06.160 --> 0:18:08.040 this line here that the Court faces at least the 0:18:08.040 --> 0:18:10.560 spectrum of a legitimacy crisis, if not a full blown one. 0:18:10.840 --> 0:18:14.280 Talk about what that means. You know, the Court going 0:18:14.280 --> 0:18:16.639 its own way here and and sort of America the 0:18:16.680 --> 0:18:20.480 American public's reaction to that. Well, let's start with the 0:18:20.640 --> 0:18:24.840 American public reaction. We've seen decline in confidence in the courts, 0:18:25.040 --> 0:18:29.520 declining the court's approval ratings, not surprisingly but noteworthy. That's 0:18:29.640 --> 0:18:34.160 especially with with Democrats. Overwhelmingly Democrats now say they disapprove 0:18:34.200 --> 0:18:37.480 of the Supreme Court. And over the summer and a 0:18:37.480 --> 0:18:40.399 couple of different presentations, Justice Helena kay In one of 0:18:40.600 --> 0:18:44.680 the liberal justices, without actually naming names and talking about 0:18:44.680 --> 0:18:47.480 particular cases, but she talked about what in her mind 0:18:47.600 --> 0:18:50.960 creates a legitimate legitimacy problem for a court, and she 0:18:51.080 --> 0:18:54.160 talked about, um, you know, if you have the same 0:18:54.200 --> 0:18:57.640 issue being decided a different way because the court's membership 0:18:57.680 --> 0:19:00.600 has changed, and one could certainly think about cases like 0:19:00.680 --> 0:19:04.080 the abortion cases as fitting into that category. And so 0:19:04.119 --> 0:19:06.720 when you have a justice on the court, you know, 0:19:06.760 --> 0:19:09.840 at least raising that that spect. You know, it's certainly 0:19:09.840 --> 0:19:12.800 something for you know, all of them to pay attention to. Creig. 0:19:12.840 --> 0:19:15.560 I want to dive into the elections that a little 0:19:15.560 --> 0:19:18.440 bit and how elections could shift under the Supreme Court, 0:19:18.520 --> 0:19:21.359 what what could they do specifically to make it so 0:19:21.480 --> 0:19:24.760 State Supreme courts have a different hand in elections. Yeah, 0:19:24.760 --> 0:19:26.880 so there are two big election cases, and the one 0:19:26.880 --> 0:19:30.879 involving state supreme courts has to do with a North 0:19:31.200 --> 0:19:34.040 North Carolina redistricting fight. And so let me just back 0:19:34.080 --> 0:19:35.800 up for a second. Remember a few years ago, the 0:19:35.800 --> 0:19:40.000 Supreme Court said, we have the Supreme Court interpreting the U. S. Constitution. 0:19:40.040 --> 0:19:43.280 Don't have authority to say that voting districts are so 0:19:43.560 --> 0:19:47.200 partisans or unconstitutional. They said that sort of partisan jurymandering 0:19:47.240 --> 0:19:50.040 claim doesn't fly in federal court. But they left open 0:19:50.080 --> 0:19:52.920 the possibility that a state supreme court could say, hey, 0:19:53.040 --> 0:19:57.720 under our state constitution, Uh, these districts you've drawn are unconstitutional. 0:19:57.760 --> 0:20:00.280 And that's what happened in this North Carolina case. And 0:20:00.320 --> 0:20:02.200 now the question at the Supreme Court, and it could 0:20:02.200 --> 0:20:05.439 be a really far reaching one, is whether then the 0:20:05.520 --> 0:20:08.760 US Constitution limits what a state supreme court can do. 0:20:08.800 --> 0:20:11.720 The U. S. Constitution, when it talks about drawing districts 0:20:11.760 --> 0:20:15.119 and setting voting rules for congressional elections, says that the 0:20:15.160 --> 0:20:18.800 power to do that lies with the state legislature. Uh. 0:20:18.840 --> 0:20:21.720 And so the question is whether the North Carolina Supreme 0:20:21.760 --> 0:20:24.480 Court kind of overstepped its bounds in doing something that 0:20:24.520 --> 0:20:27.800 only the North Carolina State legislature can do. That's Bloomberg 0:20:27.800 --> 0:20:30.200