WEBVTT - Levin on Rio Olympics Providing Distraction (Audio)

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<v Speaker 1>You're listening to Taking Stock with Pim Fox and Kathleen

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<v Speaker 1>Hayes on Bloomberg Radio The Real Olympics. I must say

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<v Speaker 1>Pim Fox that I already missed them. We spent a

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<v Speaker 1>lot of time in my household watching and it on

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<v Speaker 1>one of these that really struck me as something we're

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<v Speaker 1>gonna take up with our next guest. That's that there

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<v Speaker 1>was so much concern, rightfully so, about the condition the

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<v Speaker 1>Olympic stadium would be in, about crime, about water, so

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<v Speaker 1>many issues. And of course there was the diving pool

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<v Speaker 1>that turned green temporarily during the high diving competition, but

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<v Speaker 1>they weren't a disaster. Now what this question is being

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<v Speaker 1>raised by Jonathan Levin. He's a reporter for Bloomberg News.

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<v Speaker 1>In fact, he's part of our Bloomberg Olympic team that's

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<v Speaker 1>been on the ground in Rio. First of all, Jonathan, welcome,

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<v Speaker 1>and second of all, I wish I could have been

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<v Speaker 1>there with you. Yeah, I bet good afternoon. So what

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<v Speaker 1>is what is the You've got your looking at Rio

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<v Speaker 1>now right, this is a very costly event. Uh, What's

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<v Speaker 1>what's facing them at the point and what does how

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<v Speaker 1>does it link to this Olympics which it seems to

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<v Speaker 1>me all in all, was pretty successful. Sure, So the

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<v Speaker 1>point of our story today was just sort of this

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<v Speaker 1>idea that you know, Rio to a certain extent has

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<v Speaker 1>been buoyed over the past seven years by this massive,

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<v Speaker 1>massive infrastructure project that was preparing for these Olympic Games. Right.

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<v Speaker 1>They built a huge Olympic park out in suburban Baja

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<v Speaker 1>with any number of stadiums. They built a new metro line,

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<v Speaker 1>and this created thousands and thousands of jobs, which bufford

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<v Speaker 1>Rio to a certain extent from the greater financial crisis,

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<v Speaker 1>the greater economic crisis I should say that that Brazil

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<v Speaker 1>has been going through. And then there's there's this security

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<v Speaker 1>question that people always talk about when they talk about Rio,

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<v Speaker 1>uh and security. Some people would be surprised to know

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<v Speaker 1>has gotten better over the past decade, but they still

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<v Speaker 1>have such a long way to go. And um, you know,

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<v Speaker 1>the point is, over the past three we it's felt

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<v Speaker 1>a little bit better. There was this massive deployment eighty

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<v Speaker 1>five thousand police and soldiers in the streets that made

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<v Speaker 1>it feel to a certain extent like a different city.

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<v Speaker 1>But now over the coming weeks and months, all of

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<v Speaker 1>that goes away and it's back to the harsh reality

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<v Speaker 1>form for many of the folks here in the city. Jonathan,

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<v Speaker 1>I just want to go through maybe a little bit

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<v Speaker 1>of a checklist following the proposed budget of thirteen billion

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<v Speaker 1>dollars for the games, which I imagine has been exceeded,

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<v Speaker 1>although we do not know an exact number. Um, but

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<v Speaker 1>is it true that hospitals in Brazil are in a

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<v Speaker 1>precarious situation because they don't have money? Uh? It is, Yeah,

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<v Speaker 1>it is true. I mean it's a little bit tricky

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<v Speaker 1>when you get into um, when you get into state finances.

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<v Speaker 1>Well we can just go through, well, just do a

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<v Speaker 1>little check mark, I mean, because I want to go

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<v Speaker 1>through a bunch of these things. So for example, all right,

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<v Speaker 1>so hospitals have got are in trouble, state universities work,

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<v Speaker 1>they're they're on strike. Correct. Um, I don't know about

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<v Speaker 1>I don't know about that, Pim. At least I heard

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<v Speaker 1>the police stations are running out of paper. Police stations.

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<v Speaker 1>Absolutely absolutely, we're going through some self financial times, a

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<v Speaker 1>lot of a lot of penny pinching. You could even,

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<v Speaker 1>um say, there was a time when when police officers,

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<v Speaker 1>folks who you really need to be on on your side,

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<v Speaker 1>we're we're facing late paychecks, so, you know, not the

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<v Speaker 1>not the right move from right? Also, Johns, So are

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<v Speaker 1>they that much worse shape than they were before the Olympics?

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<v Speaker 1>Number one, because this downslide in Brazil has been really tough,

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<v Speaker 1>right there on a big upswing with hindsight, would they

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<v Speaker 1>have bid? Of course? They've also got the World Cup

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<v Speaker 1>soccer event coming at least. I gotta say, I'm so

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<v Speaker 1>happy they won the gold in uh in soccer, their

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<v Speaker 1>national sport. But so I think pam Rais is a

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<v Speaker 1>good point. They're really hurting. They spend all this money,

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<v Speaker 1>what do they do now? Yeah, that's the thing. I'm

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<v Speaker 1>I mean, you're right, Um, it was. It was a

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<v Speaker 1>different time back in two thousand nine when Brazil won

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<v Speaker 1>the rights to host host these games and and a

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<v Speaker 1>lot of times it's politicians who bid for these things

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<v Speaker 1>because they want to showcase sort of brand Brazil and

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<v Speaker 1>brand Brazil looked looked a lot different back in two

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<v Speaker 1>thousand nine. Uh, you know, the heavy days of of

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<v Speaker 1>the Lulie years. The stock market was booming, I p

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<v Speaker 1>O s were booming, M and A was booming, and

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<v Speaker 1>it's it's a it's a different country right now, is

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<v Speaker 1>what it is? What about the mayor of Rio de Janeiro,

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<v Speaker 1>Eduardo Pace, Yeah exactly. So, I mean, you know, I

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<v Speaker 1>think the feeling is going to be going forward that

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<v Speaker 1>that he did a good job pulling this off and

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<v Speaker 1>as he looks forward to whatever his next step maybe um,

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<v Speaker 1>you know, but he's trying to stop up parliamentary inquire

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<v Speaker 1>commission being opened to investigate the spending in the Olympics. Yeah,

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<v Speaker 1>I mean there, Yeah, there's been a there have been

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<v Speaker 1>a great deal of questions about transparency with regards to

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<v Speaker 1>the execution of Rio and yeah that up until now

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<v Speaker 1>they haven't wanted to to fully disclose what's going on. Yeah. Well, so, Jonathan,

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<v Speaker 1>what's the conversation in the street, what's the conversation in

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<v Speaker 1>the businesses and the taxi cabs are resilience, angry that

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<v Speaker 1>there their country spent so much at a time when

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<v Speaker 1>there's so much poverty and so much need. Are they

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<v Speaker 1>proud that they pulled it off and hoping that this

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<v Speaker 1>will boost the desire to visit Brazil do business there. Yeah,

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<v Speaker 1>I mean the funny thing is that, you know, we'll

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<v Speaker 1>have to have this conversation again in a couple of

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<v Speaker 1>weeks because of the games. The excitement of the games

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<v Speaker 1>really do change the conversation. I remember in the in

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<v Speaker 1>the weeks and months leading up to the start of

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<v Speaker 1>the event, everybody was sort of talking about, you know,

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<v Speaker 1>come on, you know, how how how how could we

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<v Speaker 1>be dedicating resources to building things like a velodrome, right,

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<v Speaker 1>an indoor bicycle track when this, uh, this city needs

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<v Speaker 1>so much in terms of uh, you know, basic infrastructure. Um.

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<v Speaker 1>But at the same time, people really get into it, right, well,

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<v Speaker 1>they certainly do get into it. I want to thank

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<v Speaker 1>you very much. Jonathan Levin. He is a reporter for

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<v Speaker 1>Bloomberg News, joining us from Rio de Janeiro. And just

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<v Speaker 1>to note that on Thursday, dil marussef her impeachment trial

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<v Speaker 1>in Brazil begins. Thank you for listening to Taking Stock.

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<v Speaker 1>I'm Pim Fox along with my co host Kathleen Hayes.

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<v Speaker 1>This is Bloomberg