WEBVTT - Bannon's Addition to NSC Raises Questions, Bloomfield Says 0:00:04.760 --> 0:00:07.680 Welcome to the Bloomberg P and L Podcast. I'm Pim 0:00:07.800 --> 0:00:11.080 Fox along with my co host Lisa Abramowitz. Each day 0:00:11.119 --> 0:00:14.360 we bring you the most important, noteworthy, and useful interviews 0:00:14.400 --> 0:00:16.560 for you and your money, whether at the grocery store 0:00:16.800 --> 0:00:19.960 or the trading floor. Find the Bloomberg P L Podcast 0:00:20.000 --> 0:00:28.240 on iTunes, SoundCloud, and at Bloomberg dot com. It has 0:00:28.280 --> 0:00:32.640 been an eventful past week, and one of the bits 0:00:32.680 --> 0:00:35.600 of news that has come out in recent days is 0:00:35.640 --> 0:00:39.280 that President Trump elevated his chief strategist Steve Bannon to 0:00:39.360 --> 0:00:44.080 the National Security Council. Into Mooded, the Director of National Intelligence, 0:00:44.640 --> 0:00:48.000 off of that committee. I want to bring an Ambassador 0:00:48.000 --> 0:00:51.199 Lincoln Bloomfield. He's the chairman of the Simpson Center and 0:00:51.320 --> 0:00:54.480 he was Assistant Secretary of State from two thousand and 0:00:54.480 --> 0:00:57.880 one to two thousand five under George W. Bush, president 0:00:58.200 --> 0:01:01.520 of the United States at the time. Uh, Ambassador Bloomfield, 0:01:01.520 --> 0:01:03.120 thank you so much for joining us. First, I just 0:01:03.160 --> 0:01:05.200 want to get a sense before we even start to 0:01:05.200 --> 0:01:10.119 talk about the implications, what does the National Security Council 0:01:10.160 --> 0:01:14.520 really do well? That does vary from president to president, 0:01:14.560 --> 0:01:16.280 but it was set up under a law in nine 0:01:17.440 --> 0:01:22.600 in order to coordinate military and non military activities better. 0:01:23.000 --> 0:01:26.919 And so it's function traditionally has been a place where 0:01:27.240 --> 0:01:30.360 each of the cabinet departments in the national security community 0:01:30.400 --> 0:01:34.800 comes together, gives their recommendations, and usually the National Security 0:01:34.800 --> 0:01:38.639 Advisor is the one at the heading the meetings unless 0:01:38.640 --> 0:01:42.920 the President does it himself in major cases of emergencies, 0:01:43.360 --> 0:01:46.120 um and and to to hear their views and including 0:01:46.120 --> 0:01:48.800 their different views, see if they can resolve them and 0:01:48.840 --> 0:01:50.720 if they can't, and then they take it to the 0:01:50.720 --> 0:01:56.240 President for decision. Can you recall specific meetings which you 0:01:56.400 --> 0:02:01.080 attended in which you learned something about out the operational 0:02:01.760 --> 0:02:06.520 maybe backstory of of the of the you know, small 0:02:06.560 --> 0:02:10.040 circle of people who are included in these meetings. Well, 0:02:10.120 --> 0:02:12.519 I was on the Vice president's staff for one year 0:02:12.600 --> 0:02:15.120 under Dan Quayle, and I would I would go to 0:02:15.160 --> 0:02:17.639 those meetings and sit against the wall. So there are 0:02:17.680 --> 0:02:20.200 people who can come in the room and and watch 0:02:20.240 --> 0:02:23.560 the meetings if they're White House staff. The question is 0:02:23.600 --> 0:02:26.240 who has a formal seat at the table, And that's 0:02:26.280 --> 0:02:29.640 that's what this is about. So President George W. Bush, 0:02:29.639 --> 0:02:33.680 for example, did not allow his political counselor Karl Rove, 0:02:33.840 --> 0:02:36.480 to go to NFC meetings because he didn't I didn't 0:02:36.480 --> 0:02:39.240 want to send a signal that there was any politics involved. 0:02:39.480 --> 0:02:43.040 So if asked Bloomfield, what's your impression from Steve Bannon 0:02:43.080 --> 0:02:47.280 being named to this, well, you know, uh, I testified 0:02:47.360 --> 0:02:51.200 last fall at a hearing that the House Foreign Affairs 0:02:51.240 --> 0:02:54.440 Committee held about the issue of the National Security Council 0:02:54.480 --> 0:02:56.840 and the size and the role. And frankly, the bottom 0:02:56.880 --> 0:03:00.680 line is that presidents get to decide who there eisors are. 0:03:00.760 --> 0:03:03.320 This is the White House staff. So if the President 0:03:03.360 --> 0:03:07.120 Trump wants Steve Bannon to be at the table, uh, 0:03:07.680 --> 0:03:13.480 deliberating with the senior national security agency heads, that is 0:03:13.560 --> 0:03:15.799 his call he can. I mean, I think he's sort 0:03:15.840 --> 0:03:20.079 of deferred to the president whatever serves the president's purpose 0:03:20.240 --> 0:03:23.560 to to make the best decisions. So he has crossed 0:03:23.880 --> 0:03:26.880 a line that was not crossed by previous presidents. President 0:03:26.919 --> 0:03:30.440 Obama had David Axelrod come to some of these meetings, 0:03:30.480 --> 0:03:32.840 but he sat out, you know, he didn't sit at 0:03:32.840 --> 0:03:35.560 the table and participate. But that's just a call that's 0:03:35.600 --> 0:03:39.120 been made. And if President Trump is relying on Steve 0:03:39.120 --> 0:03:43.120 Bannon to be his advisor across the board on these issues, 0:03:43.160 --> 0:03:45.440 then then I think that at the end of the day, 0:03:45.520 --> 0:03:48.440 people will defer to that how it works. But what 0:03:48.520 --> 0:03:52.160 about the on the flip side, President Trump's to Mooting, 0:03:52.240 --> 0:03:55.160 the Director of National Intelligence and the Chairman of the 0:03:55.200 --> 0:03:58.040 Joint Chiefs of Staff. Those I think are actually the 0:03:58.040 --> 0:04:01.080 more interesting discussion. I mean, obviously people are fascinated by 0:04:01.160 --> 0:04:03.640 Mr Bannon, whom I don't know, and he's he's a 0:04:03.680 --> 0:04:05.800 person who's getting a lot of attention. We will see 0:04:05.800 --> 0:04:08.600 how how that plays out and what he what his 0:04:08.680 --> 0:04:13.640 input is. But the Chairman of the Joint Chiefs, by law, 0:04:14.280 --> 0:04:18.039 was given the principal role of military advisor to the 0:04:18.040 --> 0:04:22.000 President under the Goldwater Nichols Law Reform Act of nineteen 0:04:22.440 --> 0:04:25.640 six and so the notion and so what the directive 0:04:25.720 --> 0:04:30.880 said was on those issues where they have business before 0:04:30.880 --> 0:04:34.800 the committee, they can come otherwise, not that I think 0:04:34.839 --> 0:04:37.360 that the impact there is whether you whether you get 0:04:37.360 --> 0:04:41.080 a really solid flow of the team around the president. 0:04:41.160 --> 0:04:43.440 And this is usually run by the National Security Advisor. 0:04:43.520 --> 0:04:47.400 So General Michael Flynn is the is the national Security Advisor. 0:04:47.480 --> 0:04:50.039 This is his operation. So the question is what will 0:04:50.040 --> 0:04:53.120 be the chemistry if the people at the table keep 0:04:53.240 --> 0:04:58.320 changing Traditionally and I'm talking about decades. The first person 0:04:58.480 --> 0:05:01.640 that the National Security Advisor turned too is the intelligence person. 0:05:01.720 --> 0:05:04.680 Let's start with an intelligence update, what's the latest, what 0:05:04.720 --> 0:05:07.479 do we know? Then the Secretary of State has the 0:05:07.680 --> 0:05:10.919 sort of Uh, the protocol leads, so the Secretary of 0:05:10.960 --> 0:05:14.360 State goes second or their deputies. And that's the way 0:05:14.400 --> 0:05:18.279 this has worked for decades. Uh. If key players like 0:05:18.320 --> 0:05:21.400 the military representative is not there, I think you're going 0:05:21.440 --> 0:05:24.520 to hear and already are hearing from members of Congress 0:05:24.520 --> 0:05:28.040 who say, wait a minute, um, the principal advisor of 0:05:28.160 --> 0:05:31.040 the military needs to be part of this team pretty 0:05:31.120 --> 0:05:34.240 much at all times. It is national security. And you 0:05:34.279 --> 0:05:37.039 will hear from senior military as well, who feels that 0:05:37.200 --> 0:05:40.359 the voice of the professional military is essential and that 0:05:40.440 --> 0:05:43.799 whether the president agrees to it, agrees with the military 0:05:43.839 --> 0:05:46.120 advice or not, it's not the point. It's whether the 0:05:46.160 --> 0:05:48.919 president is hearing that advice. And as for d n 0:05:48.960 --> 0:05:53.480 I Congress created the Directorate of National Intelligence after nine eleven. 0:05:53.520 --> 0:05:55.599 They added a very what turned out to be two 0:05:55.640 --> 0:05:58.279 thousand people, a very big layer on top of the 0:05:58.320 --> 0:06:01.719 other agencies. And know, if they aren't at the table, 0:06:02.200 --> 0:06:05.240 then you know, I'll just give a personal view. General 0:06:05.320 --> 0:06:09.000 Flynn regionally intelligence very closely, so I don't fear that 0:06:09.080 --> 0:06:12.560 President Trump will be uninformed about intelligence, but but not 0:06:12.680 --> 0:06:15.320 having the community's voice there at the table is going 0:06:15.400 --> 0:06:18.560 to raise some questions. So how many how much? So 0:06:18.600 --> 0:06:20.159 the question is how much friction do they want to 0:06:20.200 --> 0:06:24.880 cause and how much? Thanks very much, Ambassador Lincoln Bloomfield, 0:06:24.960 --> 0:06:29.480 Chairman of the Stimpson Center, speaking about changes in the 0:06:29.520 --> 0:06:44.800 Trump administration's National security team. I want to learn more 0:06:44.839 --> 0:06:51.160 about our southern border neighbor, Mexico and potential opportunities there. 0:06:51.160 --> 0:06:54.160 Herrado Rodriguez, Managing director and portfolio manager at black Rock 0:06:54.240 --> 0:06:58.320 Financial Management, UM, thank you so much for joining us. 0:06:58.640 --> 0:07:00.600 You were quoted in an article all about a week 0:07:00.680 --> 0:07:04.320 or so ago saying that you think that the Mexican 0:07:04.360 --> 0:07:08.479 PATO could be one of the best bets of We've 0:07:08.520 --> 0:07:10.960 certainly had an eventful a couple of days on the 0:07:10.960 --> 0:07:16.000 political front. Do you still believe that? Absolutely? At LISTA 0:07:16.000 --> 0:07:20.200 and good morning everyone. When you think about the Mexican economy, 0:07:20.240 --> 0:07:24.679 it is an economy that has been run relatively conservatively 0:07:24.920 --> 0:07:29.720 from an economic policy perspective. It is an economy that 0:07:29.800 --> 0:07:34.040 has the fiscal accounts in order, inflation has been uh, 0:07:34.320 --> 0:07:37.280 sort of coming down. There is a big shock that 0:07:37.360 --> 0:07:40.400 the Mexican economy is facing because of a change in 0:07:40.840 --> 0:07:44.080 policy from the US administration, But so far it is 0:07:44.080 --> 0:07:47.440 an economy that has been adjusting very well. Using a 0:07:47.520 --> 0:07:51.800 textbook example, tighten on the fisical, raising interest rates on 0:07:51.800 --> 0:07:55.520 the monitor, letting the currency go. And we're getting to 0:07:55.560 --> 0:07:59.480 a point in which Mexican assets actually look very very cheap. 0:07:59.560 --> 0:08:02.600 The val do that they have accumulators quite significant, but 0:08:03.240 --> 0:08:08.120 they uncertainty surrounding the US Mexican relationship. It is something 0:08:08.240 --> 0:08:12.760 that needs to be addressed before asset prices in Mexico 0:08:12.920 --> 0:08:16.920 start to perform. But from evaluation perspective, clearly Mexican assets 0:08:16.960 --> 0:08:20.320 are one of the most attractive trade for the months 0:08:20.320 --> 0:08:23.720 remaining this year. So here Ado. You served for more 0:08:23.760 --> 0:08:26.960 than a decade in the Mexican Ministry of Finance, last 0:08:27.040 --> 0:08:30.680 serving as the under Secretary of Finance and Public Credit. 0:08:30.760 --> 0:08:33.720 I imagine you've had a lot of contact with Mexican 0:08:33.760 --> 0:08:37.120 officials and probably can get a better feel for just 0:08:37.240 --> 0:08:40.600 how elevated the tensions have become. Do you have a 0:08:40.679 --> 0:08:43.360 sense of how much what we're hearing is political rhetoric 0:08:43.760 --> 0:08:46.559 uh and sort of chest beating and how much really 0:08:46.640 --> 0:08:50.280 nearing a sort of tipping point into a very bad 0:08:50.360 --> 0:08:54.280 state of affairs between Mexico and the US. Well, there 0:08:54.320 --> 0:08:59.680 are there are two different dynamics here that we need 0:08:59.720 --> 0:09:04.120 to to understand better. One is just what the US 0:09:04.440 --> 0:09:08.440 wants from Mexico. From a trade perspective. Mexico has been 0:09:08.520 --> 0:09:12.000 a good neighbor. It is a comparative neighbor. It is 0:09:12.040 --> 0:09:15.600 a neighbor that tends to sort of to engage and 0:09:15.640 --> 0:09:19.760 to compromise on different things. It has been a very 0:09:19.800 --> 0:09:24.560 fruitful relationship since NAFTA was signed. It was a very 0:09:24.600 --> 0:09:29.200 fruitful relationship with the Canadians and the US. So it 0:09:29.480 --> 0:09:32.960 would be important to understand exactly what is it that 0:09:33.000 --> 0:09:37.040 the US would like if an institutional table was set 0:09:37.080 --> 0:09:43.040 up to basically modernize NAFTA, and there's a blueprint already 0:09:43.040 --> 0:09:46.240 for that, and it is basically the content in terms 0:09:46.720 --> 0:09:50.720 of um the sort of rules of origin for example 0:09:50.920 --> 0:09:55.960 that has been negotiated in the context of TPP intellectual 0:09:56.320 --> 0:10:02.240 property and an addressing sort of dispute mechanisms. Now, on 0:10:02.280 --> 0:10:06.439 the other hand, you have a domestic political agenda, domestic 0:10:06.480 --> 0:10:11.600 political dynamics that the president of Mexico has a twelve 0:10:11.679 --> 0:10:14.680 percent approval rate all time load. There's a lot of 0:10:14.720 --> 0:10:19.199 pressure and if anything, these contentious issue against the US, 0:10:19.280 --> 0:10:23.040 it is something that is bringing the population together now 0:10:23.160 --> 0:10:27.760 because the two things are a bit uncertain. You're right 0:10:27.800 --> 0:10:30.960 that we could get two different equilibriums here. I think 0:10:30.960 --> 0:10:34.240 that it's still the central scenario is one in which 0:10:34.360 --> 0:10:39.400 sort of reason prevails. Everyone has been benefiting from NAFTA, 0:10:39.480 --> 0:10:43.079 there's potential to improve that, and then an institutional table 0:10:43.160 --> 0:10:45.439 is set up with the Canadians, the US and Mexico, 0:10:45.800 --> 0:10:49.560 and that brings you to a more benign outcome for 0:10:49.760 --> 0:10:53.680 asset prices in Mexico. But given what's been happening over 0:10:53.720 --> 0:10:56.360 the past few days, it is likely that we don't 0:10:56.400 --> 0:11:00.960 get there, and then the tensions actually increase and the 0:11:01.040 --> 0:11:05.840 positions radicalized. So again, it is a great value trade, 0:11:05.880 --> 0:11:08.200 but it is one that you need to be careful 0:11:08.320 --> 0:11:16.520 at this point. Mr Rodriguez honoring the theme of focusing 0:11:16.679 --> 0:11:20.520 on your purchase price of any investment, in other words, 0:11:20.640 --> 0:11:24.760 the purchase prices. The most important function for some investors 0:11:25.480 --> 0:11:27.880 is the purchase price not only of the pace so 0:11:28.040 --> 0:11:32.000 but of certain Mexican assets at a point where you 0:11:32.080 --> 0:11:37.520 believe that long term investors will be significantly rewarded. Absolutely, 0:11:38.480 --> 0:11:43.440 But that is assuming that the reality of a Mexican 0:11:43.520 --> 0:11:47.560 economy continues to be in line of what it has 0:11:47.640 --> 0:11:50.840 been over the past. It's not it's the eleventh largest 0:11:50.880 --> 0:11:54.520 economy in the world exactly. But but but one needs 0:11:54.520 --> 0:11:58.040 to understand that if we go the route over, say, 0:11:58.800 --> 0:12:03.400 radicalization of positions between Mexico and the US, there's a 0:12:03.440 --> 0:12:07.560 lot of value that could be destroyed and actually Mexican 0:12:07.640 --> 0:12:11.480 assets could go even weaker. So again, given the central 0:12:11.559 --> 0:12:17.280 scenario in which countries are able to channel these differences 0:12:17.360 --> 0:12:20.559 and the potential to revamp NAFTA, all of that is 0:12:20.640 --> 0:12:24.640 channel through institutional means. Absolutely, the answer to your question 0:12:24.840 --> 0:12:28.719 is that the value of Mexican assets is significantly attractive. Well, 0:12:28.920 --> 0:12:31.960 so is it just the pace so that looks attractive 0:12:32.160 --> 0:12:35.440 or are there other Mexican opportunities the past will look 0:12:35.480 --> 0:12:39.280 even more so? Perhaps in the corporate sphere, the Mexican 0:12:39.320 --> 0:12:42.600 past with certainly top of mind here, and I would 0:12:42.640 --> 0:12:45.720 point to Mexican interest rates. There's been there's been an 0:12:45.760 --> 0:12:49.040 increase of more than two hundred basis points across the 0:12:49.080 --> 0:12:54.800 curve in Mexican bonds, and certainly when four point four 0:12:54.880 --> 0:12:58.120 point one one for the Mexican tenure. Yeah, and and 0:12:58.200 --> 0:13:01.160 local currency bonds. I mean you can get bonds for 0:13:01.320 --> 0:13:04.920 eight percent, say out to ten fifteen years in the 0:13:04.920 --> 0:13:08.160 case of Mexico. You don't get that type of wheels 0:13:08.240 --> 0:13:11.360 in many places in the world, especially in economies that 0:13:11.400 --> 0:13:17.600 are wrong responsibly like Mexico. Is there anything that you 0:13:17.679 --> 0:13:22.000 would see to diffuse this situation rapidly or will it 0:13:22.120 --> 0:13:25.360 have to escalate before it's diffused? Give you back thirty seconds. 0:13:25.559 --> 0:13:30.800 So what we're looking after the signpost is and has 0:13:30.840 --> 0:13:35.040 to be an announcement that the US, Canada and Mexico 0:13:35.120 --> 0:13:40.560 agree on a set up out of framework to revamp NaSTA, 0:13:40.920 --> 0:13:44.200 and then you get to the technical details and at 0:13:44.240 --> 0:13:48.600 that point it stops being an element of uncertainty. Thank 0:13:48.640 --> 0:13:53.280 you very much. Arado Rodriguez. He is Managing Director Portfolio 0:13:53.400 --> 0:13:58.640 manager for the Emerging Markets Group at black Rock Financial Management. 0:14:11.080 --> 0:14:14.600 I want to call upon Bloomberg Gadfly columnist Shira over 0:14:14.760 --> 0:14:17.120 Day to tell us a little bit about the technology 0:14:17.240 --> 0:14:21.880 industry and its response to the details of the executive 0:14:22.000 --> 0:14:25.080 orders that were signed over the weekend by President Trump 0:14:25.080 --> 0:14:29.840 regarding immigration. Yeah, so obviously the some of the tech 0:14:29.880 --> 0:14:33.320 industry executives and CEOs, and obviously those outside the tech 0:14:33.360 --> 0:14:38.520 industry too, are responding to the calls to restrict UM 0:14:38.560 --> 0:14:43.000 immigration from some of those predominantly Muslim countries. The interesting 0:14:43.040 --> 0:14:45.080 thing to me was Sergey Bryant, is one of the 0:14:45.160 --> 0:14:48.800 co founders of Google and a billionaire, one of the 0:14:48.920 --> 0:14:52.800 richest men in the world, was spotted at protests at 0:14:52.840 --> 0:14:55.480 San Francisco Airport over the weekend, which I don't think 0:14:55.520 --> 0:14:58.000 you would see, you know, Lloyd blankfeind or Jeff m 0:14:58.040 --> 0:15:02.920 melt at immigration protests. Although the week is young. We'll see, 0:15:03.360 --> 0:15:07.360 we shall see. We'll becoming the JFK ranks to see 0:15:07.400 --> 0:15:09.280 whether we see Lloyd blank find But in the meantime, 0:15:09.320 --> 0:15:13.480 shira uh, there was there's an interesting concern that some 0:15:13.640 --> 0:15:17.480 have that the worst for tech companies has yet to come, 0:15:17.520 --> 0:15:21.880 that basically VISA programs for foreign workers UM should be 0:15:22.000 --> 0:15:24.280 administered in a manner that protects the civil rights of 0:15:24.280 --> 0:15:27.280 American workers. Is according to a draft proposal that we 0:15:27.360 --> 0:15:31.000 may be getting from President Trump Trump imminently, with the 0:15:31.040 --> 0:15:34.640 idea being that some of these tech companies couldn't rely 0:15:34.920 --> 0:15:37.880 as much on some of their international recruiting programs they 0:15:37.880 --> 0:15:40.360 have in the past. Right, So basically there's a there's 0:15:40.360 --> 0:15:44.560 a kind of grab bag of skilled worker visa programs 0:15:44.600 --> 0:15:47.160 that are employed not only by tech companies but by 0:15:47.200 --> 0:15:50.920 many US corporations. The most kind of prominent one of 0:15:50.960 --> 0:15:53.720 these h one B visas, again, which are for skilled 0:15:54.120 --> 0:15:57.680 foreign workers in fields like engineering, and there's about eight 0:15:57.840 --> 0:16:00.920 five thousand of them issued every year. Uh, there is 0:16:01.000 --> 0:16:04.960 far more demand than there is supply, and the biggest 0:16:05.160 --> 0:16:10.280 users are the biggest companies. Granted those visas are outsourcing 0:16:10.280 --> 0:16:15.400 companies like Tata Consultancy and Accenture who hire engineers that 0:16:15.400 --> 0:16:18.640 that then work at again, tech companies, but also big 0:16:18.680 --> 0:16:22.880 banks and retailers and other American companies. What's the advantage 0:16:22.920 --> 0:16:26.200 for the tech companies that hire internationally other than just 0:16:26.240 --> 0:16:28.680 having a bigger pool of talent. Is this a play 0:16:28.760 --> 0:16:33.280 to lower the cost of of employing people? I think 0:16:33.320 --> 0:16:36.360 the goal depends on who you ask. So these programs 0:16:36.360 --> 0:16:39.160 have been targeted before, both on the left by people 0:16:39.160 --> 0:16:42.320 like Bernie Sanders and on the right as basically away 0:16:42.320 --> 0:16:45.080 for American companies to hire workers from abroad. They can 0:16:45.120 --> 0:16:48.480 pay less. Now, those companies who employ those uh those 0:16:48.520 --> 0:16:52.400 skilled worker visas say we can't find appropriate workers in 0:16:52.440 --> 0:16:55.480 the United States, that this is a global work force, 0:16:55.560 --> 0:16:58.320 or the the world is a global place and we 0:16:58.360 --> 0:17:00.200 need to be able to tap into the glow will 0:17:00.200 --> 0:17:02.680 workforce not just the people who live inside of the 0:17:02.760 --> 0:17:06.760 United States walls. Is there any hint that the president's 0:17:06.800 --> 0:17:11.440 administration will in some way recognize the deficit that would 0:17:11.440 --> 0:17:15.119 occur in the technology industry if it was more challenging 0:17:15.200 --> 0:17:17.560 to stay in the United States, let's say after your 0:17:17.680 --> 0:17:20.560 term school or study. I think the most honest answer is, 0:17:21.119 --> 0:17:24.720 I have no idea that. Um, everything seems to be 0:17:25.200 --> 0:17:27.240 kind of being done by the seat of the pants, 0:17:27.560 --> 0:17:30.440 and it's a little bit hard to know what impossible. 0:17:30.480 --> 0:17:34.679 If you are looking to make the system better to 0:17:34.760 --> 0:17:37.760 address the needs of technology companies, what would be one 0:17:37.880 --> 0:17:42.080 thing that you would suggest. I think that if you 0:17:42.160 --> 0:17:45.320 ask the tech executives, they would say, we want we 0:17:45.359 --> 0:17:47.679 want to be able to bring in more workers, and 0:17:47.720 --> 0:17:51.080 we want to be able to keep the large numbers 0:17:51.280 --> 0:17:55.880 of highly skilled, highly highly educated UM university graduates who 0:17:55.880 --> 0:17:58.879 are graduated from Harvard and Stanford every year, and our 0:17:58.920 --> 0:18:02.080 citizens of China, in India and other places. I think 0:18:02.119 --> 0:18:04.919 there's a big desire to keep those people in the 0:18:04.960 --> 0:18:09.119 United States and starting companies and working for companies. So 0:18:09.160 --> 0:18:11.760 I think that's the number one fix or potential fix 0:18:11.880 --> 0:18:16.120 with this visa provision that is included in a draft 0:18:16.560 --> 0:18:19.719 of an order that President Trump was expected to sign. Correct, 0:18:21.000 --> 0:18:25.000 Can can the President enact something like this without any 0:18:25.040 --> 0:18:29.040 congressional sign off? Again, the honest answer is it's not 0:18:29.119 --> 0:18:34.720 clear that. Obviously, UM Congress has been trying to work 0:18:34.760 --> 0:18:39.720 on various UM worker visa programs for a while, and 0:18:39.760 --> 0:18:42.520 I believe they're at least one kind of piece of 0:18:42.600 --> 0:18:46.440 legislation working its way through Congress. UM. Obviously, we've seen 0:18:46.440 --> 0:18:51.040 this White House already issue sweeping executive orders without input 0:18:51.160 --> 0:18:53.600 from Congress or without waiting for Congress, So this may 0:18:53.600 --> 0:18:55.680 be the same, and it's unclear exactly how it would 0:18:55.680 --> 0:18:59.040 work in practice. I believe it's worth noting that this 0:18:59.200 --> 0:19:03.399 was at least described as a security measure. This is 0:19:03.440 --> 0:19:07.000 not aimed at the business community. We're looking at the 0:19:07.000 --> 0:19:13.119 potential ramifications for the business community. Because the suspension of 0:19:13.200 --> 0:19:17.480 immigration is from uh IS, because they describe it as 0:19:18.080 --> 0:19:23.840 countries with ties to terror including Syria, Yemen, Sudan, Somalia, Iraq, Iran, 0:19:24.359 --> 0:19:26.960 and Libya for a period of ninety days. It also 0:19:27.000 --> 0:19:30.760 calls for the complete suspension of Syrian refugees for an 0:19:30.760 --> 0:19:35.280 indefinite period. And I just wanted to make that clear 0:19:35.480 --> 0:19:40.040 because the issue that perhaps the technology industry or any 0:19:40.440 --> 0:19:45.360 industry is focused on now is different, but maybe uh 0:19:45.560 --> 0:19:48.840 certainly come under the same heading. Correct, Is that? Yeah? 0:19:48.840 --> 0:19:51.080 I think that's fair. I mean there's two issues one right, 0:19:51.119 --> 0:19:54.639 there's the executive order issue of the weekend affecting people 0:19:54.800 --> 0:19:59.720 from those particular kind of Muslim dominated countries and Syrian refugees, 0:19:59.800 --> 0:20:02.040 and and there's this issue of this draft order that 0:20:02.119 --> 0:20:04.600 maybe coming down the pike that our colleagues wrote about 0:20:04.640 --> 0:20:08.080 affecting worker visas. And those are obviously separate issues, but 0:20:08.160 --> 0:20:11.480 both deal with immigrants to the United States. Do the 0:20:11.600 --> 0:20:17.040 sense of which technology companies executives are have to have 0:20:17.119 --> 0:20:22.760 the biggest voice into the White House? I don't know yet. 0:20:23.520 --> 0:20:26.000 It's been interesting to see, you know, Tim Cook, who's 0:20:26.040 --> 0:20:28.480 the CEO of Apple, isn't making the rounds in Washington 0:20:28.560 --> 0:20:32.159 in the last few days. The head of IBM is 0:20:32.200 --> 0:20:36.840 also influential the right. The CEOs of Oracle are also 0:20:37.000 --> 0:20:40.000 very influential. Um, but it's a little bit hard to 0:20:40.119 --> 0:20:44.080 know at this point who has real influence. Because the 0:20:44.119 --> 0:20:45.720 reason why I ask is because we've heard a lot 0:20:45.720 --> 0:20:48.720 about the auto companies and the Detroit CEOs that have 0:20:48.840 --> 0:20:52.159 met extensively with President Trump, and you don't hear it 0:20:52.200 --> 0:20:54.600 as much with the technology companies. Yes, there was that 0:20:54.640 --> 0:20:58.200 one meeting, but beyond that, we don't have a clear sense. 0:20:59.119 --> 0:21:02.400 I think that's true. All this is a pretty young administration. 0:21:02.960 --> 0:21:04.800 Did not feel that way, but well it could be. 0:21:05.680 --> 0:21:09.359 You could say it's it's been Peter til Yes, good point. 0:21:09.600 --> 0:21:12.480 I neglected to mention. Peter Tiald obviously has been a 0:21:12.520 --> 0:21:15.800 close advisor and advisor to Trump, co founder of PayPal. 0:21:16.400 --> 0:21:20.760 He like an Australian citizen. When citizen yes, and he's 0:21:20.800 --> 0:21:26.119 also an immigrant, distribute said the Teal's originally emigrated from Germany. Well, Sarah, 0:21:26.200 --> 0:21:28.720 thank you so much for joining us, Sirah Overday, who 0:21:28.720 --> 0:21:43.560 covers the technology sector for it. Let's move forward though, 0:21:43.640 --> 0:21:47.359 with Justin st Justin is our Bloomberg government reporter and 0:21:47.400 --> 0:21:51.840 he joins us. Now, Justin, let's get the sort of agenda. 0:21:51.920 --> 0:21:58.640 What is scheduled for today as far as the cabinet nominees. Yeah, 0:21:58.800 --> 0:22:02.720 so we are inspecting, but but aren't positive that we're 0:22:02.720 --> 0:22:05.160 going to see Rex tellers in the Secretary of State 0:22:05.400 --> 0:22:09.399 Um have his sort of final vote in in the Senate. 0:22:09.480 --> 0:22:11.640 That it's expected that he's going to fly through and 0:22:11.840 --> 0:22:15.560 likely fly through today, especially after winning the sport of 0:22:15.600 --> 0:22:20.399 some key Republicans, including Mark Rubio. But Minority Leader Chuck Schumer, Um, 0:22:20.960 --> 0:22:24.040 the top Democrat in the Senate, UH said Monday that 0:22:24.080 --> 0:22:26.600 he's hoping to ask for delay on the confirmation vote, 0:22:27.080 --> 0:22:30.760 citing the sort of chaos stemming from from the Muslim 0:22:30.800 --> 0:22:35.120 ban um or the extreme betting band, depending on who 0:22:35.160 --> 0:22:39.879 you're talking to. U that the unrolled over the weekend 0:22:39.880 --> 0:22:43.439 and obviously caused some chaos at airports and across the country. 0:22:43.720 --> 0:22:46.320 You know, one thing that was a little bit played 0:22:46.359 --> 0:22:50.480 down as a result of getting overshadowed by the Executive 0:22:50.600 --> 0:22:55.080 Order on Immigration that President Trump signed was the decision 0:22:55.119 --> 0:23:00.159 to elevate Steve Bannon to National Security Council and to 0:23:00.240 --> 0:23:04.040 remove some other national security officials from that post. Do 0:23:04.160 --> 0:23:08.560 you have any color on what was behind that or 0:23:08.600 --> 0:23:11.800 what the implications are. Sure? Yeah, I mean, I think 0:23:11.800 --> 0:23:15.040 it is interesting to just show a bit of the 0:23:15.080 --> 0:23:18.520 consolidation of power that Steve Bannon, who's the former chairman 0:23:18.560 --> 0:23:21.320 of Right bart Um now at a top aid both 0:23:21.320 --> 0:23:23.879 in the campaign and the White House to Donald Trump 0:23:24.560 --> 0:23:27.399 some of his power. It does make sense in the 0:23:27.400 --> 0:23:31.480 context that when Bannon was introduced he was UM sort 0:23:31.480 --> 0:23:35.159 of referred to with as a co chief of staff 0:23:35.200 --> 0:23:37.720 with with Ryn's previous that they'd have similar roles. The 0:23:37.760 --> 0:23:40.960 chief of staff typically serves on on the NFC, but 0:23:41.119 --> 0:23:45.120 it is UM somewhat unprecedented to have a purely political 0:23:45.160 --> 0:23:48.280 figure on the staff. George W. Bush Passilly excluded people 0:23:49.080 --> 0:23:51.119 under Obama. David X rod Will sit in on a 0:23:51.160 --> 0:23:54.000 couple of those meetings, but wasn't there regularly, and so 0:23:54.640 --> 0:23:57.360 UM this is a change. The other sort of aspect 0:23:57.359 --> 0:23:59.680 of this is that UM one of the people who 0:23:59.720 --> 0:24:03.240 had their roles a little reduced was the Director National Intelligence, 0:24:03.840 --> 0:24:08.320 Mike Flynn, who's UM the National Security Advisor, has said 0:24:08.320 --> 0:24:10.520 that he wants d n I, which is the body 0:24:10.560 --> 0:24:13.920 that kind of coordinates all the different intelligence agencies together, 0:24:13.960 --> 0:24:16.600 to have a reduced role. And and that's interesting because 0:24:16.720 --> 0:24:20.679 Mike Flynn was actually fired by President Obama's Director of 0:24:20.720 --> 0:24:23.000 National Intelligence a couple of years ago, and so he 0:24:23.080 --> 0:24:26.359 has I think some residual animosity towards that body and 0:24:26.760 --> 0:24:30.920 is looking to reform um the way that intelligence works 0:24:30.960 --> 0:24:34.040 in the Trump administration so that people like him UH 0:24:34.480 --> 0:24:36.879 can succeed in the way that they didn't or he 0:24:36.920 --> 0:24:40.040 didn't in the Obama administration. One other thing that we've 0:24:40.040 --> 0:24:43.879 heard out of President Trump's camp this morning was that 0:24:43.960 --> 0:24:48.800 he intends to revamp Dodd Frank in a very big way. 0:24:49.040 --> 0:24:52.679 I want to bring in Nathan Dean of Bloomberg Intelligence 0:24:52.720 --> 0:24:54.560 to give us more of a sense of what this 0:24:54.720 --> 0:24:59.440 potential rollback might look like, especially in light of Treasury 0:24:59.480 --> 0:25:03.840 Secretary nominee Steve Manusian's comments last week while he was 0:25:03.960 --> 0:25:06.440 being UH when he while he was testifying in front 0:25:06.480 --> 0:25:09.080 of Senate saying that he did not intend to completely 0:25:09.560 --> 0:25:13.000 eradicate the vocal rule. So I think what this means 0:25:13.040 --> 0:25:16.440 is that they're going to be studying the existing regulations. UH. 0:25:16.520 --> 0:25:18.200 They're going to spend a couple of months, three or 0:25:18.240 --> 0:25:21.200 six months looking at the REGs UH and trying to 0:25:21.240 --> 0:25:24.400