WEBVTT - The Markets, Ukraine, And Biden’s SCOTUS Pick

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<v Speaker 1>Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney alongside

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<v Speaker 1>my co host Matt Miller. Every business day we bring

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<v Speaker 1>you interviews from CEOs, market pros, and Bloomberg experts, along

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<v Speaker 1>with essential market moving news. Find the Bloomberg Markets podcast

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<v Speaker 1>called Apple Podcasts or wherever you listen to podcasts, and

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<v Speaker 1>at Bloomberg dot com slash podcast. The question for a

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<v Speaker 1>lot of investors yesterday and today and going forward over

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<v Speaker 1>the next Saturdays certainly is how will the uncertainty, the

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<v Speaker 1>geopolitical uncertainty in Europe effect the global economic recovery. We're

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<v Speaker 1>talking inflation, economic growth, and what does that mean for

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<v Speaker 1>financial assets? With David Coodla joins us. He's a founder,

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<v Speaker 1>CEO and c i O of Mainstay Capital Management. David,

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<v Speaker 1>as your outlooked changed it all over the last twenty

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<v Speaker 1>four hours, It hasn't really changed from you know, where

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<v Speaker 1>we've been for the past several months. And what I

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<v Speaker 1>mean by that is, you know we were we've been

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<v Speaker 1>focused more. We're overweight value and cyclical stocks UH for

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<v Speaker 1>equity exposure, we are overweight commodities as a hedge UH,

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<v Speaker 1>and we're mostly void interestrate sensitive bonds. Now with the

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<v Speaker 1>geopolitical events. You know, we geopolitical events don't have a

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<v Speaker 1>perpetual impact on markets. That's what history has shown. I

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<v Speaker 1>think that this event is a little bit different because

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<v Speaker 1>of the environment in with inflation and what commodities could

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<v Speaker 1>be impacted. That's even whether they're impacted by sanctions or not. Uh,

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<v Speaker 1>they'll be. They're just impacted by the event itself, whether

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<v Speaker 1>we're talking about oil, gas, whether we're talking about agricultural commodities, fertilizer.

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<v Speaker 1>Ukraine and Russia together supplied of the world's wheat and corn. Um,

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<v Speaker 1>they're going to be in the Ukraine recovery period um.

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<v Speaker 1>But we'll see what's yet to come. On sanctions, they've

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<v Speaker 1>been more symbolic. They've hit the financial ins toos, but

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<v Speaker 1>they really haven't gone after rushes jugular yet and and

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<v Speaker 1>may not at all. On where they make their money,

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<v Speaker 1>which is hydrocarbon's fossil fuel and and and seems like

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<v Speaker 1>they're making more than ever we've seen. Um that Russian

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<v Speaker 1>sales of gas were up I think today and thirty

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<v Speaker 1>eight percent yesterday, So everyone's rushing to buy their products,

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<v Speaker 1>even at much higher prices. UM. It doesn't seem that

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<v Speaker 1>just doesn't seem right, but I guess that's the way

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<v Speaker 1>it goes sometimes. What do you expect the knock on

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<v Speaker 1>effects to be for the FED? Anything at all? Well,

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<v Speaker 1>the you know, the Feds, the FEDS fight coming into

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<v Speaker 1>this is inflation is bringing inflation down. We got a

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<v Speaker 1>PC this morning at six point one percent, another you know,

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<v Speaker 1>another increase year over year. Um we have you know,

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<v Speaker 1>I think the FED hope that still that inflation comes

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<v Speaker 1>down on its own a supply chains heel. Uh. You know,

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<v Speaker 1>prices were high coming into this, they stand only to

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<v Speaker 1>be higher. Uh as we come out because of uh

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<v Speaker 1>we're aluminum is skyrocketed to where uh wheat up six

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<v Speaker 1>percent yesterday. You know that the impact of this geopolitical

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<v Speaker 1>event will have some lasting impacts. That stands to only

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<v Speaker 1>increase inflation. And you know, for the FED, really what

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<v Speaker 1>they're staring in the face of his stagflation, Yeah exactly.

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<v Speaker 1>I mean Paul has been asking or making the point

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<v Speaker 1>for for weeks or months now that the FED can't

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<v Speaker 1>stop inflation caused by supply constraints. They can only slow

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<v Speaker 1>demand with increased rates, right, So that means kind of

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<v Speaker 1>the only choice is to slow down the economy um

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<v Speaker 1>to to get inflation under control. Yeah, and we have

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<v Speaker 1>you know when we talk about these knock on effects

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<v Speaker 1>or what's going on with uh, you know, with prices

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<v Speaker 1>going higher, especially when we talk about oil that you know,

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<v Speaker 1>at one point Brent crude was a roaching hundred five

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<v Speaker 1>dollars per arrow per barrel. But you know, uh, even

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<v Speaker 1>before the geopolitical event, we were looking for oil gas

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<v Speaker 1>prices to go even higher. Oil is a tax on

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<v Speaker 1>the economy, and but it's also inflationary. So they're really

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<v Speaker 1>between a rock and a hard place because there are

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<v Speaker 1>forces there they're gonna be slowing the economy and forces

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<v Speaker 1>it seemed to be continuing to ramp inflation higher, much

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<v Speaker 1>higher than where the fat expected and probably a lot

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<v Speaker 1>of others as well. So we're seeing these forecasts for

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<v Speaker 1>how many rate hikes we get this year. You know,

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<v Speaker 1>they've been all over the map this week. Each day

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<v Speaker 1>is to what was happening in the conflict in Ukraine. So, David,

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<v Speaker 1>what are your clients asking you most, you know, over

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<v Speaker 1>the last few days, what's the big question they have?

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<v Speaker 1>What this geopolitical event means to the market. It I

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<v Speaker 1>think it's typical Uh, as much as you educate your

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<v Speaker 1>clients talk about these things. We sent out a communication

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<v Speaker 1>on Tuesday mornings specifically about you know, what you create,

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<v Speaker 1>you create going on in Ukraine and what it means

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<v Speaker 1>to the markets, what it means to the portfolios. But

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<v Speaker 1>you know, there's still at twenty four hour news cycle. Um,

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<v Speaker 1>they're hearing the concerns about, uh, what could happen. And

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<v Speaker 1>you know, we've seen you know, leaders around the world,

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<v Speaker 1>specifically in the EU and US, who have been trying

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<v Speaker 1>to get gas and oil anywhere they can and they

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<v Speaker 1>are not in i think in terms of sanctions not

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<v Speaker 1>to put those supplies at risk because they're concerned about

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<v Speaker 1>domestic policy. So you know that the concern is they

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<v Speaker 1>see higher inflation, they hear the the discussions about slower growth,

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<v Speaker 1>and you know that's that's that's obviously a good discussion

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<v Speaker 1>to have to put them at ease about what we're doing.

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<v Speaker 1>All Right, David, thank you so much for joining us

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<v Speaker 1>once again. We always appreciate getting your perspective on these markets.

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<v Speaker 1>David Coudlif, founder, CEO and c IO of main Stake

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<v Speaker 1>Capital Management. Okay, we're let's call it thirty six hours

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<v Speaker 1>into this news cycle with Russia invading Ukraine. It seems

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<v Speaker 1>like something out of the twentieth century at Jason Bourne.

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<v Speaker 1>But here we are nevertheless, markets very violatile. Yesterday took

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<v Speaker 1>a big sol off as one would expect, but then

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<v Speaker 1>in the afternoon really came back with a vengeance and

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<v Speaker 1>closed on the upside. And we've got some more green

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<v Speaker 1>on the screen today. But how do you factor in

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<v Speaker 1>geopolitical risk uh into your investing, particularly if you're a

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<v Speaker 1>tech investors, And for that we check in with Lauren Hine,

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<v Speaker 1>head of advisor relations at robo Global. Lauren, thanks so

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<v Speaker 1>much for taking the time here, um, as the last

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<v Speaker 1>twenty four hours changed the way you guys think about

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<v Speaker 1>these markets. Hi, thanks for having me. Absolutely not. We

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<v Speaker 1>don't make decisions um about kind of the long term

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<v Speaker 1>outlook for innovation based on market swings. I mean, frankly,

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<v Speaker 1>if anything, the lasts in the last I guess month

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<v Speaker 1>or two have given our investors a good opportunity to

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<v Speaker 1>kind of buy in at lower prices. So there's long

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<v Speaker 1>term opportunity for us whenever we have these kind of

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<v Speaker 1>geopolitical hits. Um. Do you is that the first thought

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<v Speaker 1>after obviously the human issues that we're all concerned about. UM.

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<v Speaker 1>When you look at the markets, do you think this

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<v Speaker 1>UM is going to cause volatility that is going to

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<v Speaker 1>give us a chance to get in UM. That's very

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<v Speaker 1>much I think where our our mindset is and our

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<v Speaker 1>investors mindset is. I mean, robot Global specializes in investing

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<v Speaker 1>in things like robotics and automation, and you know, despite

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<v Speaker 1>what's happening in the geopolitical landscape, there will be more automation,

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<v Speaker 1>there will be more innovation, more robotics application cross sector

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<v Speaker 1>over the next twelve months, over the next three or

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<v Speaker 1>five ten years. So a twenty four hour kind of

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<v Speaker 1>geopolitical news cycle isn't going to really affect the trajectory

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<v Speaker 1>of technology. And this this leads me to another question.

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<v Speaker 1>Paul and I were talking to UM a guy who

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<v Speaker 1>runs a tech cup any recently and he specialized in logistics,

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<v Speaker 1>and we asked him, you know, does this present a

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<v Speaker 1>problem Russia invading Ukraine for the global supply chain? And

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<v Speaker 1>he said, actually, the economies are pretty insular and not

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<v Speaker 1>really do you see it the same way, UM, I mean, honestly,

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<v Speaker 1>it's not something that we've raised a lot of red

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<v Speaker 1>flags about here in the last day. We're obviously when

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<v Speaker 1>we're watching logistics, we're watching supply chain and factory automation regardless,

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<v Speaker 1>is something we're very optimistic and excited about for the future,

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<v Speaker 1>something that frankly, technology can really solve some serious problems.

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<v Speaker 1>But it's not nothing being affected by Russia that we're

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<v Speaker 1>talking about right now, Lauren. Five G that's something that

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<v Speaker 1>we've heard a lot about last eighteen months or so.

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<v Speaker 1>How do you guys think about five G and maybe

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<v Speaker 1>how are you guys trying to get some exposure to that? Sure, Honestly,

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<v Speaker 1>we're not trying to get a pure play exposure to

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<v Speaker 1>five G through any of our indexes or any of

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<v Speaker 1>our underlying technology funds that we're creating UM. As far

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<v Speaker 1>as the five network itself, we know that we need it.

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<v Speaker 1>We need a faster network with more capacity UM for

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<v Speaker 1>any of our technologies to run. So what will be

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<v Speaker 1>crucial in kind of the next the new economy, But

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<v Speaker 1>it's not something that we're actively trying to get exposure to.

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<v Speaker 1>I think we're specialists on kind of the ecosystem of

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<v Speaker 1>automation more than on the the infrastructure technology space. All right, Lauren,

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<v Speaker 1>thank you so much for joining us, really appreciate getting

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<v Speaker 1>We didn't get to ask her at all about softball.

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<v Speaker 1>I know there's there's a lot of serious stuff going on,

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<v Speaker 1>and we come to you, Lauren for real market knowledge,

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<v Speaker 1>and you're great at that. But you also played varsity

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<v Speaker 1>um softball at WESI UM. I spent my time in

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<v Speaker 1>left field, and you guys are making me think I

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<v Speaker 1>need to get someone on my Google and really start

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<v Speaker 1>scrubbing that. I'm just thinking. It just sounds like so

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<v Speaker 1>much fun, and it's Friday, and there's no reason that

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<v Speaker 1>we shouldn't mention. Mean, how great is intercollegiate softball? Actually,

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<v Speaker 1>college sports are wonderful. Softball is a fast game. It's

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<v Speaker 1>fun to watch, it's fun to play, and frankly, the

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<v Speaker 1>discipline and the team atmosphere is a great skill set

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<v Speaker 1>for kind of the rest of your life, especially in

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<v Speaker 1>a fast faced environment like working with the markets. So

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<v Speaker 1>that it can't endorse it enough, we're gonna bring it up.

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<v Speaker 1>We're going to talk some softball. Larenheyde, head of advisor

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<v Speaker 1>relations at Robot Global. This is the big take, the

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<v Speaker 1>best of Bloomberg's in depth original reporting from around the globe.

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<v Speaker 1>We're running on a financial system that's running on old

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<v Speaker 1>technology prices. Fish recordized. What unfolds in mid terms, we

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<v Speaker 1>will no doubt see again in the next presidential election.

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<v Speaker 1>The Big Take on Bloomberg Radio, all right, the Big

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<v Speaker 1>Takes story today really focuses on economics, macro economics on

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<v Speaker 1>a global scale, and the question is how the unfolding

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<v Speaker 1>war in Europe could threaten the global economic recovery from

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<v Speaker 1>the pandemic. Let's check in with Tom or Like, chief

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<v Speaker 1>economists for Bloomberg Economics. He joins us here on the

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<v Speaker 1>phone time, So give us a sense of kind of

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<v Speaker 1>what you and your colleagues are thinking about this continued

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<v Speaker 1>global economic recovery post pandemic, and how it may be

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<v Speaker 1>impacted by the events we're seeing in Russia and Ukraine.

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<v Speaker 1>So there's three channels which we see for impact from

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<v Speaker 1>Ukraine to the rest of the world. The first is

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<v Speaker 1>spillovers from Russian sanctions Russian recession to Europe. That's a

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<v Speaker 1>drag on exports for Europe, especially for the Eastern European

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<v Speaker 1>countries which are most closely had the closest trade links

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<v Speaker 1>with Russia. The second is what happens to energy prices Now,

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<v Speaker 1>the big concern here is that Russian supplies of gas

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<v Speaker 1>to Europe get affected. We see spiking European gas prices,

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<v Speaker 1>global oil prices that hit consumer spending power at the

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<v Speaker 1>same time as pushing inflation higher. And the third channel, well,

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<v Speaker 1>that's the financial market channel. We've not seen it so far.

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<v Speaker 1>Energy prices have stabilized, equity markets have stabilized, but clearly

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<v Speaker 1>in a geopolitical conflict, in a war, there's the chance

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<v Speaker 1>of a sustained risk off move for markets. If that happens,

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<v Speaker 1>we see another drag on growth. Potentially we see a

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<v Speaker 1>more dovish trajectory for the fair heading into the second

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<v Speaker 1>half of the year. Tom, how bad would it be

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<v Speaker 1>for the European continental economy to start buying gas, oil,

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<v Speaker 1>and aluminum from Russia. I mean, surely the prices would

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<v Speaker 1>go higher, a lot of shortages would be would pop up,

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<v Speaker 1>making life more difficult. But would it be a huge

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<v Speaker 1>problem for growth. It would be a very significant problem

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<v Speaker 1>for growth. And this is the kind of the dilemma

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<v Speaker 1>for Europe's leaders. On the one hand, they want to

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<v Speaker 1>signal to put in that this behavior is completely unacceptable. Well,

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<v Speaker 1>start funding. The other hand, start funding the right exactly.

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<v Speaker 1>On the other hand, turning off gas imports from Russia,

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<v Speaker 1>which would really be the sort of the maximum pain

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<v Speaker 1>point for Putin, would also impose very high costs on Europe.

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<v Speaker 1>We'd see inflation going higher, we'd see consumer spending power

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<v Speaker 1>going down. Likely, we'd see Europe going into at least

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<v Speaker 1>a mild down term, if not an outright recession. So far,

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<v Speaker 1>European leaders have been very, very reluctant to pay that price,

0:13:39.040 --> 0:13:42.000
<v Speaker 1>and that's why we're seeing sanctions that hit banks, that

0:13:42.120 --> 0:13:46.080
<v Speaker 1>hit corporates, that stop but stop short of hitting Russia's

0:13:46.200 --> 0:13:51.720
<v Speaker 1>energy sector. I guess the question there in is what

0:13:51.880 --> 0:13:55.440
<v Speaker 1>needs to occur for for the United States and his

0:13:55.520 --> 0:13:58.240
<v Speaker 1>Western allies to take that step, Tom, to really go

0:13:58.280 --> 0:14:01.679
<v Speaker 1>after the energy complex, which is point out we'll have,

0:14:01.760 --> 0:14:05.400
<v Speaker 1>you know, repercussions for certainly Europeans, and you know, probably

0:14:05.440 --> 0:14:07.040
<v Speaker 1>even more than that. Well, they've got to decide it's

0:14:07.040 --> 0:14:09.400
<v Speaker 1>worth it, right the exament, they don't think it's worth it.

0:14:09.400 --> 0:14:11.920
<v Speaker 1>It's not worth the injury to our own economy too,

0:14:12.760 --> 0:14:17.600
<v Speaker 1>to stop funding Vladimir Putin's invasion of other countries. So, Tom,

0:14:17.640 --> 0:14:21.560
<v Speaker 1>is there any scenario where you see that happening. So

0:14:21.720 --> 0:14:25.840
<v Speaker 1>I think one crucial point here, um is that Ukraine

0:14:25.880 --> 0:14:29.160
<v Speaker 1>is not a member of NATO, right um. And so

0:14:29.440 --> 0:14:33.480
<v Speaker 1>the obligation to put boots on the ground, um, and

0:14:33.600 --> 0:14:38.320
<v Speaker 1>to get really serious about defense of the democracy there

0:14:39.040 --> 0:14:40.680
<v Speaker 1>is not nearly as strong as it would be a

0:14:40.760 --> 0:14:44.720
<v Speaker 1>favorite NATO member. So I'm an economist, I'm not an

0:14:44.760 --> 0:14:48.840
<v Speaker 1>international relations expert, but I think it's the NATO membership

0:14:48.960 --> 0:14:52.960
<v Speaker 1>question which is crucial there. Um. And if you saw

0:14:53.000 --> 0:14:56.880
<v Speaker 1>Putin's ambition stretching two countries that are members of NATO,

0:14:57.400 --> 0:15:01.360
<v Speaker 1>that's when things get really seri us in terms of sanctions,

0:15:01.360 --> 0:15:05.040
<v Speaker 1>in terms of military support, that's when you'd start to

0:15:05.120 --> 0:15:07.560
<v Speaker 1>really be concerned about the gas being turned off for

0:15:07.600 --> 0:15:11.040
<v Speaker 1>Europe if they went to the Baltics for example. Um.

0:15:11.080 --> 0:15:16.360
<v Speaker 1>We have seen, you know, during the Reagan administration, as

0:15:16.400 --> 0:15:21.440
<v Speaker 1>the Cold War was at its you know peak, um,

0:15:21.480 --> 0:15:25.840
<v Speaker 1>military spending was massive and so was economic growth. Is

0:15:25.880 --> 0:15:28.920
<v Speaker 1>that is that a possibility of this if this escalates.

0:15:30.920 --> 0:15:34.520
<v Speaker 1>So the end of the Cold War hasn't played out

0:15:34.600 --> 0:15:37.280
<v Speaker 1>quite as hoped write Um. If you go back to

0:15:37.360 --> 0:15:41.600
<v Speaker 1>the ES, there was this kind of triumphalist view that

0:15:41.760 --> 0:15:46.000
<v Speaker 1>democracy and free market and the West or in the ascendancy,

0:15:46.160 --> 0:15:48.200
<v Speaker 1>and Russia was going to move on to that path,

0:15:48.280 --> 0:15:51.760
<v Speaker 1>and maybe even China was going to move onto that path.

0:15:52.120 --> 0:15:54.600
<v Speaker 1>And that's why you had this very optimistic period in

0:15:54.640 --> 0:15:57.800
<v Speaker 1>the early two thousands where China was coming into the

0:15:57.800 --> 0:16:01.280
<v Speaker 1>global economy and Russia scene to be on a reforming

0:16:01.400 --> 0:16:06.160
<v Speaker 1>path and globalization was driving great for everybody. Well, covid

0:16:06.680 --> 0:16:10.760
<v Speaker 1>Us China trade wars, neither war in the Ukraine. Seems

0:16:10.760 --> 0:16:16.000
<v Speaker 1>we've moved decisively off that trajectory deglobalization, maybe not, but

0:16:16.160 --> 0:16:20.280
<v Speaker 1>certainly slower globalization going forward. Yep, all right, Tom, thanks

0:16:20.280 --> 0:16:22.400
<v Speaker 1>so much for joining us. Tom orl chief economists for

0:16:22.440 --> 0:16:31.320
<v Speaker 1>Bloomberg Economics. Well, today President Biden selected a nominee for

0:16:31.400 --> 0:16:35.640
<v Speaker 1>the Supreme Court, Judge Katangi Brown and Jackson, the first

0:16:35.680 --> 0:16:39.840
<v Speaker 1>black woman nominee to the Supreme Court. Um, what does

0:16:39.880 --> 0:16:41.800
<v Speaker 1>it mean and how is this going to go? How's

0:16:41.840 --> 0:16:44.960
<v Speaker 1>the whole process gonna work? And this person get approved?

0:16:45.520 --> 0:16:50.880
<v Speaker 1>June Grasso, host of Bloomberg and Bloomberg Opinionsso it's Grosso.

0:16:51.160 --> 0:16:53.240
<v Speaker 1>What did I say? So this is important to people?

0:16:53.400 --> 0:16:57.120
<v Speaker 1>How you pronounced their name? June Grasso? What did I say?

0:16:57.200 --> 0:17:00.600
<v Speaker 1>By the way, you said Grasso, like like Dick Grass. Remember,

0:17:00.760 --> 0:17:03.720
<v Speaker 1>so it's grosso with June. Are you going with the

0:17:03.840 --> 0:17:08.440
<v Speaker 1>soft a Yes, soft day. I wouldn't have stopped you though,

0:17:08.520 --> 0:17:11.560
<v Speaker 1>but but Matt did. Mat he has no Yeah, he

0:17:11.560 --> 0:17:16.000
<v Speaker 1>doesn't work. Listen June. I used to drive home at

0:17:16.000 --> 0:17:18.400
<v Speaker 1>the same time as June had her show every day.

0:17:18.440 --> 0:17:20.560
<v Speaker 1>She had a great legal show on Bloomberg Radio with

0:17:20.600 --> 0:17:23.760
<v Speaker 1>Michael Beast. I listened to it every day. I loved it. Um.

0:17:23.800 --> 0:17:30.000
<v Speaker 1>She went to Wellesley, which I think is amazing. Uh

0:17:30.080 --> 0:17:33.720
<v Speaker 1>and uh law degree from Harvard. She's an Emmy Award winner,

0:17:33.960 --> 0:17:36.160
<v Speaker 1>So she's kind of a big deal. And yet I

0:17:36.200 --> 0:17:39.440
<v Speaker 1>wasn't nominated to the Supreme Court. What happened to tell

0:17:39.520 --> 0:17:42.520
<v Speaker 1>us about the nominee? All Right, she is a star

0:17:42.720 --> 0:17:45.720
<v Speaker 1>Katangi Brown Jackson. She's been on the bench for nearly

0:17:45.760 --> 0:17:49.720
<v Speaker 1>a decade. She has the Ivy League credentials, Harvard College,

0:17:49.760 --> 0:17:52.720
<v Speaker 1>Harvard Law School, she clerked for Brier, who she's going

0:17:52.800 --> 0:17:56.000
<v Speaker 1>to replace. And she's got a different kind of background

0:17:56.000 --> 0:17:58.960
<v Speaker 1>in that she served as a federal public defender. The

0:17:59.040 --> 0:18:03.840
<v Speaker 1>last Supreme Court justice with significant public defender uh or

0:18:04.600 --> 0:18:08.919
<v Speaker 1>significant experience representing criminal defendants was Thorgrid Marshall, the legendary

0:18:08.960 --> 0:18:12.840
<v Speaker 1>civil rights lawyer, and she has been considered a contender

0:18:12.880 --> 0:18:16.400
<v Speaker 1>for quite a while. President Obama not actually did an

0:18:16.440 --> 0:18:19.080
<v Speaker 1>interview with her when a sea came open that he

0:18:19.119 --> 0:18:21.960
<v Speaker 1>gave to Merrick Garland. We know how that turned out.

0:18:22.400 --> 0:18:26.560
<v Speaker 1>But she she's just a star June. Do you think

0:18:26.560 --> 0:18:30.320
<v Speaker 1>she'll get approved? Oh, I definitely think she'll get approved.

0:18:30.760 --> 0:18:33.600
<v Speaker 1>When she went when the question is how nasty will

0:18:33.640 --> 0:18:37.000
<v Speaker 1>the nomination process be? I mean the nomination process has

0:18:37.600 --> 0:18:42.480
<v Speaker 1>been for the last few nominees contentious since Garland. Yeah,

0:18:43.040 --> 0:18:47.720
<v Speaker 1>well yeah, Garland never got never even got a care Yes, yeah,

0:18:47.920 --> 0:18:49.960
<v Speaker 1>but it was getting it was a little bit before that,

0:18:50.000 --> 0:18:53.440
<v Speaker 1>but it's gotten so contangents and awful. But she just

0:18:53.840 --> 0:18:55.920
<v Speaker 1>not a year ago, less than a year ago, went

0:18:55.960 --> 0:18:59.440
<v Speaker 1>through the confirmation process for the d C Circuit, which

0:18:59.480 --> 0:19:02.320
<v Speaker 1>is sort of the feeder court to the Supreme Court,

0:19:02.760 --> 0:19:06.640
<v Speaker 1>and she sailed. She sailed through that. Basically there were

0:19:06.640 --> 0:19:10.160
<v Speaker 1>three Republicans that voted with her, uh for her that

0:19:10.280 --> 0:19:13.520
<v Speaker 1>was out of the committee. That was Lindsay Graham's uh,

0:19:13.560 --> 0:19:16.920
<v Speaker 1>Susan Collins and Lisa Murkowski. But you know, the Supreme

0:19:16.960 --> 0:19:20.479
<v Speaker 1>Court is a different The Supreme Court nominations and hearings

0:19:20.480 --> 0:19:23.320
<v Speaker 1>are different, so we don't know if she'll get those

0:19:23.400 --> 0:19:27.800
<v Speaker 1>particular votes. But the Republicans really don't have a coherent

0:19:28.119 --> 0:19:31.960
<v Speaker 1>strategy or reason to attack her. So, you know, the

0:19:31.960 --> 0:19:35.000
<v Speaker 1>the questioning we heard from Republicans during that hearing was

0:19:35.080 --> 0:19:39.199
<v Speaker 1>about you know, wonky sort of sentencing guidelines and the

0:19:39.240 --> 0:19:41.720
<v Speaker 1>fact that she had represented as a public defender or

0:19:41.760 --> 0:19:46.120
<v Speaker 1>guantanam obey inmate. That was probably the most they had

0:19:46.160 --> 0:19:49.080
<v Speaker 1>on her and her you know. Also, she's ruled in

0:19:49.119 --> 0:19:51.800
<v Speaker 1>a lot of high profile cases, but none cases involving

0:19:51.800 --> 0:19:55.679
<v Speaker 1>those hot button issues like abortion or guns or religious rights.

0:19:56.240 --> 0:19:59.199
<v Speaker 1>The highest profile you have to think about is the

0:19:59.240 --> 0:20:03.200
<v Speaker 1>Don McGann case where she famously said presidents are not

0:20:03.400 --> 0:20:09.359
<v Speaker 1>kings about Donald Trump. So, so assuming she gets confirmed June,

0:20:10.040 --> 0:20:13.280
<v Speaker 1>what does the Supreme Court look like then? So the

0:20:13.440 --> 0:20:16.440
<v Speaker 1>ideological makeup of the court won't change. It will still

0:20:16.480 --> 0:20:21.320
<v Speaker 1>be six Conservatives and three liberals, but those three liberals

0:20:21.440 --> 0:20:24.679
<v Speaker 1>will be women. It's going to be an all women block,

0:20:25.359 --> 0:20:29.439
<v Speaker 1>and also with diversity of their own Hispanic, Jewish, and Black.

0:20:29.560 --> 0:20:32.280
<v Speaker 1>It's going to be I think, really something to see

0:20:32.320 --> 0:20:35.040
<v Speaker 1>because those three women are going to be able to

0:20:35.080 --> 0:20:37.520
<v Speaker 1>talk about some of the issues, and particularly with her

0:20:37.560 --> 0:20:40.800
<v Speaker 1>background Katangi Brown Jackson, in some of the cases that

0:20:40.880 --> 0:20:43.399
<v Speaker 1>come forward. For example, they're going to be an attack

0:20:43.440 --> 0:20:48.200
<v Speaker 1>on affirmative action coming up next term, and the only

0:20:48.240 --> 0:20:51.439
<v Speaker 1>other black on the court, Clarence Thomas, is not a

0:20:51.480 --> 0:20:55.400
<v Speaker 1>fan of affirmative action, So we'll see how she relates

0:20:55.440 --> 0:20:58.560
<v Speaker 1>in that case and and what happens. I just expect

0:20:58.600 --> 0:21:01.320
<v Speaker 1>that they're really going to be speck tacular. They're all

0:21:01.440 --> 0:21:06.639
<v Speaker 1>three are so well spoken and really um sort of there.

0:21:06.680 --> 0:21:08.600
<v Speaker 1>You know, you can there you have sound bites from

0:21:08.640 --> 0:21:10.639
<v Speaker 1>them if you ever listen, if you're wonk enough to

0:21:10.680 --> 0:21:14.159
<v Speaker 1>listen to Supreme Court arguments, you'll you can you know,

0:21:14.200 --> 0:21:16.560
<v Speaker 1>you sort of see that the justices that have like

0:21:16.840 --> 0:21:19.160
<v Speaker 1>what i'd call a sound bite that say things that

0:21:19.440 --> 0:21:25.200
<v Speaker 1>just resonate. And Elena Kagan and so do Mayor certainly

0:21:25.280 --> 0:21:28.200
<v Speaker 1>have that, and I expect that Katangi Brown Jackson will

0:21:28.240 --> 0:21:32.360
<v Speaker 1>as well. By the way, how do you do judges

0:21:32.440 --> 0:21:37.400
<v Speaker 1>ideological leanings stay the same because their careers are so long, right,

0:21:37.480 --> 0:21:40.160
<v Speaker 1>and I know Reagan, for example, appointed a few Federal

0:21:40.200 --> 0:21:43.880
<v Speaker 1>Court judges who turned extremely liberal in there, right, and

0:21:44.320 --> 0:21:48.360
<v Speaker 1>so that's definitely true. You have certain justices who turn

0:21:48.440 --> 0:21:50.840
<v Speaker 1>with David Sutor is a great example of a justice

0:21:50.840 --> 0:21:54.160
<v Speaker 1>that they thought was going to be moderate to conservative

0:21:54.160 --> 0:21:56.920
<v Speaker 1>and turned out to be moderate to liberal liberal. So

0:21:56.960 --> 0:21:59.840
<v Speaker 1>but the thing is that in order to prevent that

0:22:00.040 --> 0:22:04.320
<v Speaker 1>from happening in the future, what's being done now is

0:22:04.400 --> 0:22:08.800
<v Speaker 1>they're vetting these candidates more closely, and they're looking for

0:22:08.960 --> 0:22:13.200
<v Speaker 1>a background, a history of conservatism so that it will

0:22:13.240 --> 0:22:17.280
<v Speaker 1>be unusual, or liberalism or liberalism so that it will

0:22:17.320 --> 0:22:20.960
<v Speaker 1>be unusual for them to all of a sudden make

0:22:21.119 --> 0:22:23.520
<v Speaker 1>a turn. But gradually it could happen. And also there

0:22:23.520 --> 0:22:27.159
<v Speaker 1>are some cases where you don't expect, you know, a

0:22:27.280 --> 0:22:29.840
<v Speaker 1>ruling and all of a sudden, for example, in the

0:22:29.880 --> 0:22:35.120
<v Speaker 1>in the ruling about um uh transgender you know, being

0:22:35.160 --> 0:22:37.560
<v Speaker 1>able to get a job and the violation we had

0:22:37.600 --> 0:22:42.240
<v Speaker 1>Gorset's writing that majority option, which was a surprise. Okay, June,

0:22:42.240 --> 0:22:43.720
<v Speaker 1>thank you so much for breaking it down for us.

0:22:43.840 --> 0:22:47.280
<v Speaker 1>Drewn Grosso, host of Bloomberg Law and Bloomberk Opinion for

0:22:47.280 --> 0:22:50.639
<v Speaker 1>Bloomberg News. Thanks for listening to the Bloomberg Markets podcast.

0:22:51.040 --> 0:22:54.240
<v Speaker 1>You can subscribe and listen to interviews with Apple podcasts

0:22:54.400 --> 0:22:58.280
<v Speaker 1>or whatever podcast platform you prefer. I'm Matt Miller. I'm

0:22:58.320 --> 0:23:01.520
<v Speaker 1>on Twitter at Matt Miller and inteen seventy three and

0:23:01.680 --> 0:23:04.280
<v Speaker 1>on Fall Sweeney, I'm on Twitter at pt Sweeney. Before

0:23:04.280 --> 0:23:07.120
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0:23:07.200 --> 0:23:07.440
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