WEBVTT -  Trump Will Call Putin to Push for Trilateral With Zelenskiy

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg business

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<v Speaker 1>Carol Masser and Tim Steneveek on Bloomberg Radio.

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<v Speaker 2>I want to get back to our top story out

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<v Speaker 2>of Washington, DC. The President and President Zelenski of Ukraine

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<v Speaker 2>are now talking with Europe's leaders. It's a second meeting

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<v Speaker 2>that followed the Trump Zelenski bilateral that we saw earlier today.

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<v Speaker 2>The President has reiterated that he will call President Putin

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<v Speaker 2>of Russia after talks are over, and you will try

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<v Speaker 2>to arrange a three way Russia Ukraine US meeting. I

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<v Speaker 2>want to bring in Jennifer Welch. She's been watching this

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<v Speaker 2>very closely. She's chief geoeconomics analyst for Bloomberg Economics. She

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<v Speaker 2>joins us from our Washing.

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<v Speaker 3>To DC bureau.

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<v Speaker 2>The signs out of the meeting with Zelensky earlier today

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<v Speaker 2>there was certainly a different tone, Jennifer. I'm wondering how

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<v Speaker 2>you're viewing this, and then also the commentary that we

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<v Speaker 2>got from more than half a dozen leaders of NATO

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<v Speaker 2>and Europe.

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<v Speaker 4>All signs so far look positive. The meeting is still ongoing,

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<v Speaker 4>which is also a positive sign. This is very much

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<v Speaker 4>a strong contrast from Zelenski's last meeting in the Oval Office,

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<v Speaker 4>which ended early, which blew up into fireworks in front

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<v Speaker 4>of the press. The camaraderie that Trump and Zelenski were

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<v Speaker 4>demonstrating to each other in front of the cameras first

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<v Speaker 4>and there by a lot and then again when surrounded

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<v Speaker 4>by European leaders, I think just signals how far that

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<v Speaker 4>relationship has come, and I think, in particular how far

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<v Speaker 4>Zolensky and European leaders have come in developing a playbook

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<v Speaker 4>for how to deal with Trump. And we saw this

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<v Speaker 4>in the way in which they all engaged in that

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<v Speaker 4>press conference just about an hour ago, going around the

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<v Speaker 4>table praising Trump, sort of incepting this idea of maybe

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<v Speaker 4>we should really emphasize the ceasefire for us to give

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<v Speaker 4>time to negotiating a larger peace deal, and the security

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<v Speaker 4>guarantees are going to be a really important part of this.

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<v Speaker 4>And thank you so much, President Trump for bringing us

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<v Speaker 4>all here today, So I think we have moved quite

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<v Speaker 4>a bit from where we were earlier this year. The

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<v Speaker 4>key question though, is what are the terms that they're

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<v Speaker 4>all going to agree on and that Trump will then

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<v Speaker 4>be presenting to putin. Will those be enough to kind

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<v Speaker 4>of get us forward momentum towards an ultimate piece deal

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<v Speaker 4>of some sort.

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<v Speaker 5>Yeah, it was really interesting to just watch at least

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<v Speaker 5>the footage that we could see here the European leaders

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<v Speaker 5>and Trump. The tone looked fairly positive. People were, you know, laughing,

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<v Speaker 5>making jokes at least in a lighter kind of casual sense.

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<v Speaker 5>And you mentioned that it seems like the European leaders

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<v Speaker 5>are taking a different approach to Trump now, maybe more

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<v Speaker 5>willing to all work together. What, in your view has

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<v Speaker 5>sparked that that change in tone.

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<v Speaker 4>I think part of it is the recognition of presenting

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<v Speaker 4>a united front to President Trump.

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<v Speaker 6>Right.

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<v Speaker 4>The fact that all of these leaders came into town

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<v Speaker 4>today to join President Zelenski when he was meeting with Trump,

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<v Speaker 4>so it's not just Lenski and Trump one on one.

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<v Speaker 4>I think that was really critical. I think also it

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<v Speaker 4>gives Trump the opportunity to kind of play host, to

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<v Speaker 4>look like the peacemaker, which is something he signaled over

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<v Speaker 4>and over again he's really interested in doing. I think

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<v Speaker 4>all of these tactics are kind of born out of

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<v Speaker 4>seeing what didn't work earlier in the year, which was

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<v Speaker 4>Lenski meeting one on one with Trump, or rather being

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<v Speaker 4>the only form representative in the Oval Office with Trump

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<v Speaker 4>and his team having that more combative conversation. European leaders

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<v Speaker 4>have been coaching him behind the scenes on how to

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<v Speaker 4>deal more effectively with Trump, and I think that that

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<v Speaker 4>has shown a lot of fruit by the time that

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<v Speaker 4>we get to the meetings happening place today.

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<v Speaker 2>It's pretty remarkable that you're you know, that's working so well,

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<v Speaker 2>and it's and it's yeah, go.

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<v Speaker 4>Ahead, no, no, it is, and you have some really

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<v Speaker 4>clear players at the table earlier today, most notably the

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<v Speaker 4>NATO Secretary General Mark Rutha, who's someone who is in

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<v Speaker 4>part picked for that job because of his ability to

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<v Speaker 4>know how to work well with Trump and the fact

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<v Speaker 4>that Trump seemed to not so subtly indicate that part

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<v Speaker 4>of his openness to security guarantees for Ukraine is taking

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<v Speaker 4>place in the context of what he sees as NATO

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<v Speaker 4>agreeing to spend more on defense NATO members beyond the

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<v Speaker 4>United States, That is what I mean. Spending more on

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<v Speaker 4>their defense is for him a consideration. But it comes

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<v Speaker 4>to thinking about how much skinned the US is putting

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<v Speaker 4>in this game. For Ukraine, what do.

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<v Speaker 3>You think they're talking about as we speak right now?

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<v Speaker 4>I think there are a couple of key issues it

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<v Speaker 4>sounds like are still being worked out at the moment

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<v Speaker 4>based on that press conference we saw in the last hour.

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<v Speaker 4>The first one is this question of are we going

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<v Speaker 4>for a ceasefire first or a full peace deal. Coming

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<v Speaker 4>out of his meeting with President Putin, Trump seemed to

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<v Speaker 4>be emphasizing We're just going to go for the peace deal.

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<v Speaker 4>We're not going to pause, you know, We're not going

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<v Speaker 4>to focus on sort of this lower end of a ceasefire.

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<v Speaker 4>We're just going to end this thing once and for all.

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<v Speaker 4>European leaders Ukraine have actually been pushing the opposite direction.

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<v Speaker 4>They want to ceasefire first, one because they don't want

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<v Speaker 4>to be negotiating something as massive as a peace seal

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<v Speaker 4>while under fire quite literally. And two because this tends

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<v Speaker 4>to be kind of a Russia delay tactic to push

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<v Speaker 4>for a larger peace seal that's going to take a

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<v Speaker 4>long time to resolve while still trying to make gains

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<v Speaker 4>on the battlefield. So I think that's one issue that

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<v Speaker 4>seems clear they're going to be still discussing. A second

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<v Speaker 4>one is going to be territorial issues Russia. Again, we

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<v Speaker 4>don't know exactly what Putin and Trump discussed on Friday,

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<v Speaker 4>but most likely Putin was reiterating some of Russia's long

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<v Speaker 4>standing and demands that Ukraine seed over formal recognition of

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<v Speaker 4>territories that Russia has occupied for some period of time,

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<v Speaker 4>as well as withdrawal from territory that Russia doesn't currently

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<v Speaker 4>control but would like to occupy. Those have been non

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<v Speaker 4>starters for Ukraine and by extension, for a lot of

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<v Speaker 4>European leaders as well. And then the third issue that

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<v Speaker 4>I think they're likely to discuss it was a huge

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<v Speaker 4>point of it emphasis and that press conference is what

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<v Speaker 4>are the nature of security guarantees that the US and

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<v Speaker 4>Europe will be providing to Ukraine to hold this deal

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<v Speaker 4>firmly in place. President Trump said himself that he wants

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<v Speaker 4>a deal to last. He doesn't want to have to

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<v Speaker 4>be going at this again in a couple of years

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<v Speaker 4>that the deal breaks down and we see complete heat

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<v Speaker 4>back up again. That's also a key concern for European

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<v Speaker 4>and obviously Ukrainian leaders as well. Security guarantees could ideally

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<v Speaker 4>hold that deal in place so that we're not just

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<v Speaker 4>existing in some sort of frozen armiscist or frozen conflict

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<v Speaker 4>that could reheat at any point in time.

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<v Speaker 5>Given the fact that Russia is not in the room

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<v Speaker 5>right now, Putin is not there as a part of

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<v Speaker 5>any of these discussions, how much progress can the EU

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<v Speaker 5>and Zelenski and Trump make on all of these points

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<v Speaker 5>that you raise right now with Russia not there.

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<v Speaker 4>I think from European and Ukrainian leader's perspective, but they're

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<v Speaker 4>probably more focused on even obviously they all want to

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<v Speaker 4>reach a peace seal, but they want to reach the

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<v Speaker 4>right peace seal for Ukraine. They don't want to make

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<v Speaker 4>concessions just so that Russia will agree to it. That

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<v Speaker 4>could end up compromising Ukraine's security and by extension, europe

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<v Speaker 4>security down the line. I think what they're more focused

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<v Speaker 4>on in this current moment in time is making sure

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<v Speaker 4>that they don't look like the obstacles to peace. So,

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<v Speaker 4>in a sense, a still positive outcome for them out

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<v Speaker 4>of this meeting would be they get Trump to agree

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<v Speaker 4>to certain terms or conditions. He's said earlier he was

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<v Speaker 4>going to call Putin right after this meeting if Putin

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<v Speaker 4>doesn't agree to them. Now, Putin's the one who's vietoing

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<v Speaker 4>the peace process, right and the onus is back on

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<v Speaker 4>him and back on Moscow. I think it's very likely

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<v Speaker 4>that we're going to reach a sort of stalemate here,

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<v Speaker 4>just given how far apart the different parties of this

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<v Speaker 4>are on the key terms for a deal, and the

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<v Speaker 4>fact that Russia probably still thinks time is on its side,

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<v Speaker 4>and so it's playing for that time because it thinks

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<v Speaker 4>the more that it has time to make gains on

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<v Speaker 4>the battlefield, the more it will win back, the more

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<v Speaker 4>fatigue the West will become, and the more likely President

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<v Speaker 4>Trump will move on to other issues. So they are

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<v Speaker 4>not necessarily genuinely interested in resolving this conflict at this

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<v Speaker 4>moment in time, and I think that reduces the chance

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<v Speaker 4>that they'll agree to anything, even terms that could otherwise

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<v Speaker 4>be considered relatively favorable.

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<v Speaker 2>So what does that mean just to you said stalemate

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<v Speaker 2>but a continuation of what we've been saying, continuation.

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<v Speaker 4>Of the conflict, potentially a continuation of efforts at peace,

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<v Speaker 4>but ultimately we think Moscow isn't really interested in ending

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<v Speaker 4>the war right now, let alone agree to some sort

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<v Speaker 4>of ceasefire or something that would put it on pause

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<v Speaker 4>and give Ukraine a chance to kind of recoup and

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<v Speaker 4>reconstitute its forces.

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<v Speaker 2>Jennifer thirty seconds left here. What position does that leave

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<v Speaker 2>Europe in?

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<v Speaker 4>I think Europe's main focus right now is maintaining that

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<v Speaker 4>United Front, figuring out ways that they can backfield support

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<v Speaker 4>for Ukraine without the United States being the direct pride

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<v Speaker 4>of it. And so far this weapons for money scheme

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<v Speaker 4>that they've worked out with the US seems to be working.

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<v Speaker 2>Jennifer Welch always great when you join us. We really

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<v Speaker 2>appreciate you taking the time this afternoon. Jennifer Welch's chief

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<v Speaker 2>geoeconomics analyst for Bloomberg Economics. Check out her research on

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<v Speaker 2>the Bloomberg Terminal in the entire team's analysis from Bloomberg

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<v Speaker 2>Economics on the Bloomberg Terminal and at Bloomberg dot Com.

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<v Speaker 2>Stay with us more from Bloomberg BusinessWeek Daily coming up

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<v Speaker 2>after this.

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<v Speaker 1>You're listening to the Bloomberg Business Week Daily podcast. Catch

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<v Speaker 2>I want to right now bring in doctor Angela Stench.

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<v Speaker 2>She's a senior fellow at the Brookings Institution, also the

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<v Speaker 2>author of Putin's World, Russia Against the West and With

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<v Speaker 2>the Rest. She's a former National Intelligence officer for Russia

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<v Speaker 2>and Eurasia at the National Intelligence Council. She served in

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<v Speaker 2>the Office Policy Planning at the US Department of State.

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<v Speaker 2>She joins us from Nantucket this afternoon, Doctor sten I'm

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<v Speaker 2>sure like you and the rest of the world, like us,

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<v Speaker 2>we watched the meeting just now that press availability. What

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<v Speaker 2>we heard from these European leaders with great interest, what

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<v Speaker 2>we heard from Zelensky and Trump in the Oval Office earlier,

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<v Speaker 2>with great interest. One word kept coming up over and

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<v Speaker 2>over again. Trilateral the idea of meeting to end this

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<v Speaker 2>war between Russia, Ukraine and the United States. Is this

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<v Speaker 2>finally the beginning of the end of this war.

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<v Speaker 7>I would definitely hope that it is, but I'm still

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<v Speaker 7>not convinced that President Putin would be interested in a

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<v Speaker 7>trilateral meeting. He had what seemed to be a very

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<v Speaker 7>successful meeting with President Trump on Friday in Alaska, where

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<v Speaker 7>we had President Trump seemingly agreeing with everything that President

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<v Speaker 7>Putin said. We had something different today from President Trump

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<v Speaker 7>in the Oval Office. And by the way, it was

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<v Speaker 7>a great relief that there was a successful meeting between

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<v Speaker 7>President Trump and Zelensky in the Oval Office when you

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<v Speaker 7>think back to the last time that President Zelensky was there.

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<v Speaker 7>But the fact that President Trump was willing to say

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<v Speaker 7>that the UN West would consider security guarantees to Ukraine

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<v Speaker 7>were there to be a peace agreement, and even you know,

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<v Speaker 7>possibly supplying more military assistance to Ukraine. This is not

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<v Speaker 7>something that we heard on Friday in Alaska. And Putin

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<v Speaker 7>has already come out today and said that the Russia

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<v Speaker 7>would not accept any Western troops in Ukraine. He's in

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<v Speaker 7>fact said that before, he reiterated that now. So it

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<v Speaker 7>just makes one wonder whether Putin would be really willing

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<v Speaker 7>to sit down with President Zelenski and presumably President Trump

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<v Speaker 7>as well, to sincerely negotiate an enter this war.

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<v Speaker 5>Doctor sent the two world leaders, Trump and Putin. They

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<v Speaker 5>met on Friday for hours on end this meeting that

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<v Speaker 5>we've seen so far, at least between Zelenski and Trump.

0:11:50.000 --> 0:11:53.880
<v Speaker 5>It was only about thirty minutes. What is your take

0:11:54.200 --> 0:11:59.000
<v Speaker 5>on really who came out stronger after the Alaska meeting.

0:11:59.160 --> 0:12:01.040
<v Speaker 5>Was this a win for Putin?

0:12:01.520 --> 0:12:04.280
<v Speaker 7>Well, I would argue that it was largely a win

0:12:04.400 --> 0:12:07.560
<v Speaker 7>for Putin. I mean, here is an indicted war criminal

0:12:08.040 --> 0:12:12.760
<v Speaker 7>being given the red carpet treatment, literally arriving in the

0:12:12.880 --> 0:12:15.400
<v Speaker 7>United States meeting with the President of the United States.

0:12:15.400 --> 0:12:18.240
<v Speaker 7>He hadn't had a meeting with the President of the

0:12:18.360 --> 0:12:21.400
<v Speaker 7>United States since two thousand and seven on US soil.

0:12:22.600 --> 0:12:27.240
<v Speaker 7>And you had President Trump going into the meeting saying

0:12:27.240 --> 0:12:30.760
<v Speaker 7>that a ceasefire had to precede negotiations, and he came

0:12:30.800 --> 0:12:34.000
<v Speaker 7>out saying, no, We'll go right to the negotiations without

0:12:34.000 --> 0:12:36.360
<v Speaker 7>a ceasefire. And the reason why Putin doesn't want a

0:12:36.400 --> 0:12:38.960
<v Speaker 7>cease fire is because he wants to go on fighting.

0:12:39.040 --> 0:12:41.960
<v Speaker 7>In fact, as all these talks are going on in Washington,

0:12:42.000 --> 0:12:46.160
<v Speaker 7>the Russians are bombarding the Ukrainians. So it definitely seemed

0:12:46.160 --> 0:12:49.400
<v Speaker 7>from that Friday meeting that Putin had won a great deal.

0:12:49.440 --> 0:12:51.720
<v Speaker 7>And if you look at the Russian media, I mean,

0:12:51.760 --> 0:12:55.240
<v Speaker 7>they were quite ecstatic after this meeting because they said,

0:12:55.240 --> 0:12:57.560
<v Speaker 7>you know, finally we're back to where we wanted. The

0:12:57.679 --> 0:13:01.240
<v Speaker 7>Russians a great power and Putin God is meeting with

0:13:01.280 --> 0:13:02.679
<v Speaker 7>the American president.

0:13:02.720 --> 0:13:09.360
<v Speaker 2>And potentially President Putin gets some land from Ukraine at

0:13:09.360 --> 0:13:12.079
<v Speaker 2>the conclusion of this conflict. Do you think that will happen,

0:13:12.120 --> 0:13:14.719
<v Speaker 2>doctor Stan, I think it's going to.

0:13:14.640 --> 0:13:16.840
<v Speaker 7>Be very difficult. By the way, when you hear the

0:13:16.880 --> 0:13:19.960
<v Speaker 7>phrase land swap, there's no land swap, right. I mean,

0:13:20.000 --> 0:13:23.199
<v Speaker 7>the Russians want the Ukrainians to concede or to see

0:13:23.320 --> 0:13:26.160
<v Speaker 7>territory to them that they don't control, and this is

0:13:26.240 --> 0:13:31.480
<v Speaker 7>quite strategic territory. Were the Ukrainians to see that, they'd

0:13:31.520 --> 0:13:35.040
<v Speaker 7>be in a weaker position. So I think that they

0:13:35.080 --> 0:13:38.280
<v Speaker 7>would only get that if the Ukrainians really feel that

0:13:38.320 --> 0:13:41.880
<v Speaker 7>they have iron clad guarantees as much as that's possible

0:13:42.200 --> 0:13:46.480
<v Speaker 7>from the US and from our European allies to deter

0:13:46.679 --> 0:13:49.760
<v Speaker 7>Russia from any future attack. So I think that would

0:13:49.800 --> 0:13:50.760
<v Speaker 7>probably depend on it.

0:13:51.440 --> 0:13:54.839
<v Speaker 2>What would those what would those guarantees be if up

0:13:54.880 --> 0:14:02.280
<v Speaker 2>to now there have been no repercussions apart from sanctions

0:14:03.000 --> 0:14:07.680
<v Speaker 2>or even secondary sanctions on Russia as a result of

0:14:08.120 --> 0:14:09.880
<v Speaker 2>what it's done in Ukraine.

0:14:10.200 --> 0:14:14.280
<v Speaker 7>Yeah, so they're now talking about Article five type guarantees.

0:14:14.559 --> 0:14:18.040
<v Speaker 7>Article five is you know the essence of the NATO alliance,

0:14:18.080 --> 0:14:20.760
<v Speaker 7>which is, if one member is attacked, the other members

0:14:20.840 --> 0:14:24.040
<v Speaker 7>will come to its defense, as NATO did after nine

0:14:24.120 --> 0:14:28.080
<v Speaker 7>eleven when the US was attacked. And I'm not sure

0:14:28.120 --> 0:14:32.600
<v Speaker 7>that anyone really believes that if Russia were, say to

0:14:32.680 --> 0:14:36.960
<v Speaker 7>attack Ukraine again, you would have the guaranteurs then get

0:14:37.000 --> 0:14:39.760
<v Speaker 7>into a war with Russia, because you always come back

0:14:39.800 --> 0:14:43.080
<v Speaker 7>to the question that Russia is a nuclear power and

0:14:43.480 --> 0:14:48.280
<v Speaker 7>everything that that involves. So it's still difficult to understand

0:14:48.320 --> 0:14:52.640
<v Speaker 7>what security guarantees would mean in this situation. Maybe at

0:14:52.640 --> 0:14:55.920
<v Speaker 7>a minimum would mean sort of arming Ukraine to the teeth,

0:14:56.000 --> 0:14:59.040
<v Speaker 7>and the Ukrainian army is now very strong anyway, as

0:14:59.080 --> 0:15:02.280
<v Speaker 7>a way of deter Russia. If the Russians really think

0:15:03.120 --> 0:15:06.680
<v Speaker 7>as they mistakenly thought that the Ukrainians would capitulate when

0:15:06.680 --> 0:15:09.520
<v Speaker 7>they invaded in twenty twenty two, if now they believe

0:15:09.600 --> 0:15:12.280
<v Speaker 7>that if they invaded again, they really would be faced

0:15:12.400 --> 0:15:15.360
<v Speaker 7>with a very strong Ukrainian army that could push them back,

0:15:15.640 --> 0:15:20.080
<v Speaker 7>maybe that's a security guarantee. It really is harder to

0:15:20.120 --> 0:15:22.520
<v Speaker 7>imagine any other one that would be credible.

0:15:23.240 --> 0:15:26.400
<v Speaker 5>How should we be thinking about territory right now? Is

0:15:26.440 --> 0:15:30.200
<v Speaker 5>it fair to say that Ukraine is going to have

0:15:30.280 --> 0:15:33.560
<v Speaker 5>to seed some territory in order for the war to end.

0:15:35.600 --> 0:15:37.680
<v Speaker 7>I think what the Ukrainians will have to do at

0:15:37.680 --> 0:15:42.680
<v Speaker 7>a minimum is to recognize that Russia does now occupy

0:15:42.760 --> 0:15:46.640
<v Speaker 7>twenty percent of Ukraine. That doesn't mean dejure recognition, but

0:15:46.680 --> 0:15:51.000
<v Speaker 7>they factor does. But that's without sealing more territory to Russia.

0:15:51.320 --> 0:15:53.560
<v Speaker 7>I think the Ukrains won't have any choice if the

0:15:53.600 --> 0:15:56.480
<v Speaker 7>war is to end, but for the time being, to

0:15:56.560 --> 0:15:59.080
<v Speaker 7>have that land under Russian occupation.

0:16:00.680 --> 0:16:04.920
<v Speaker 2>What would this land symbolize to Europe as a result

0:16:04.960 --> 0:16:09.920
<v Speaker 2>of Russia's ambitions on the continent. The idea that Ukraine

0:16:10.200 --> 0:16:13.800
<v Speaker 2>excuse me, that Russia could go to war with the

0:16:13.840 --> 0:16:17.800
<v Speaker 2>country and even yes, after a three and a half year,

0:16:18.000 --> 0:16:21.880
<v Speaker 2>very bloody and terrible war for both sides, end with

0:16:22.560 --> 0:16:24.960
<v Speaker 2>additional territory.

0:16:25.560 --> 0:16:29.000
<v Speaker 7>I mean, it's a terrible precedent because since World War Two,

0:16:29.080 --> 0:16:31.480
<v Speaker 7>this is the first time you've had a major war

0:16:31.520 --> 0:16:35.200
<v Speaker 7>with a land drop like that, entirely unprovoked. So the

0:16:35.240 --> 0:16:38.560
<v Speaker 7>president for the Europeans, I think would be very worrying,

0:16:38.640 --> 0:16:46.040
<v Speaker 7>and particularly so those former Soviet states, either Baltic states

0:16:46.120 --> 0:16:49.400
<v Speaker 7>or former members of the Warsaw packed Poland for instance,

0:16:49.720 --> 0:16:52.320
<v Speaker 7>that are in the vicinity there and where we know

0:16:53.080 --> 0:16:56.440
<v Speaker 7>that certainly Russia might have designed certainly on the Baltic States.

0:16:56.480 --> 0:16:59.400
<v Speaker 7>So it's a very dangerous president, not only for Europe

0:16:59.440 --> 0:17:01.640
<v Speaker 7>but really for the rest of the world, that a

0:17:01.720 --> 0:17:04.560
<v Speaker 7>land grab light that unprovoked goes unpunished.

0:17:05.119 --> 0:17:07.880
<v Speaker 2>We're speaking right now with doctor Angelis stan senior fellow

0:17:07.880 --> 0:17:10.879
<v Speaker 2>at the Burkings Institution, the author of Putin's World Russia

0:17:10.920 --> 0:17:14.239
<v Speaker 2>against the West, and with the rest doctor Stent. Does

0:17:14.280 --> 0:17:16.280
<v Speaker 2>it set a precedent for what could happen to a

0:17:16.320 --> 0:17:19.440
<v Speaker 2>country like Poland? For example? Is it crazy for us

0:17:19.480 --> 0:17:26.760
<v Speaker 2>to think that that Putin would I mean, the whole

0:17:26.840 --> 0:17:29.119
<v Speaker 2>narrative right in the last few years and at the

0:17:29.119 --> 0:17:31.760
<v Speaker 2>beginning of this was what's to stop him moving past

0:17:31.840 --> 0:17:34.359
<v Speaker 2>Ukraine and into greater Europe? Is that a realistic thing

0:17:34.400 --> 0:17:36.920
<v Speaker 2>for us to talk about or is that something that

0:17:36.960 --> 0:17:37.800
<v Speaker 2>would never happen?

0:17:38.960 --> 0:17:42.320
<v Speaker 7>So? I think Poland is a member of NATO and

0:17:42.400 --> 0:17:46.399
<v Speaker 7>therefore so far right until this point, Russia has not

0:17:46.600 --> 0:17:50.320
<v Speaker 7>directly attacked a NATO member state, you know, which leads

0:17:50.359 --> 0:17:53.560
<v Speaker 7>to the argument, correct, I think that had Ukraine been

0:17:53.600 --> 0:17:56.000
<v Speaker 7>a member of NATO, Russia wouldn't have attacked it. But

0:17:56.119 --> 0:17:58.560
<v Speaker 7>we now know that NATO membership at the moment is

0:17:58.600 --> 0:18:03.199
<v Speaker 7>off the table for Ukra, So it would be unprecedented

0:18:03.320 --> 0:18:08.040
<v Speaker 7>because again, if Russia were to try to invade Poland,

0:18:08.240 --> 0:18:11.439
<v Speaker 7>then you would have NATO Article Fight guarantees, and then

0:18:11.520 --> 0:18:16.119
<v Speaker 7>you could have a major war between Russia and NATO,

0:18:16.160 --> 0:18:18.600
<v Speaker 7>which of course includes the United States and the two

0:18:18.920 --> 0:18:23.600
<v Speaker 7>nuclear superpowers, which would be potentially very dangerous.

0:18:24.119 --> 0:18:27.960
<v Speaker 5>Trump has said that Putin wants to see the war ended.

0:18:28.560 --> 0:18:31.280
<v Speaker 5>I'm wondering in your view if you think Putin is

0:18:31.280 --> 0:18:33.800
<v Speaker 5>showing any sense of urgency to end it.

0:18:35.000 --> 0:18:39.200
<v Speaker 7>Putin's not showing any signs of urgency. Putin only wants

0:18:39.240 --> 0:18:41.760
<v Speaker 7>the war to end on his terms, and right now,

0:18:41.800 --> 0:18:44.359
<v Speaker 7>his terms are very different than what President Trump and

0:18:44.400 --> 0:18:48.320
<v Speaker 7>the European leaders and President Zelenski are discussing, because he

0:18:48.400 --> 0:18:51.600
<v Speaker 7>wants Ukraine to see all of this in this territory.

0:18:52.200 --> 0:18:55.399
<v Speaker 7>He wants Ukraine to cut down on the size of

0:18:55.440 --> 0:18:59.600
<v Speaker 7>its military, to promise that it will never join NATO,

0:19:00.880 --> 0:19:05.399
<v Speaker 7>and so essentially he wants the war to end with

0:19:05.680 --> 0:19:09.560
<v Speaker 7>Ukraine's subjugation. And that's not what's on the table today

0:19:09.560 --> 0:19:10.280
<v Speaker 7>at the White House.

0:19:10.640 --> 0:19:14.760
<v Speaker 2>One thing that I found noticeable today was that the

0:19:14.840 --> 0:19:17.879
<v Speaker 2>topic of children in this conflict, and it's not something

0:19:17.920 --> 0:19:21.040
<v Speaker 2>that's we talk about every day. We probably should talk

0:19:21.080 --> 0:19:25.960
<v Speaker 2>about it every day. We had President Zelensky talk about

0:19:26.000 --> 0:19:28.960
<v Speaker 2>a letter that he received from the First Lady of

0:19:29.000 --> 0:19:34.000
<v Speaker 2>the US, Millennia Trump. On this subject, the President mentioned

0:19:34.160 --> 0:19:37.720
<v Speaker 2>children in the conflict. We had European commissioned President Ursula

0:19:37.800 --> 0:19:41.200
<v Speaker 2>vonder lyon mentioned children in the conflict.

0:19:42.000 --> 0:19:43.560
<v Speaker 3>Is the narrative shifting a little bit?

0:19:45.920 --> 0:19:48.000
<v Speaker 7>So? First of all, the letter that he was talking

0:19:48.000 --> 0:19:50.520
<v Speaker 7>about was actually a letter that the First Lady of

0:19:50.560 --> 0:19:54.080
<v Speaker 7>the United States wrote to Putin and which President Trump

0:19:54.119 --> 0:19:56.159
<v Speaker 7>gave to Putin at the summit, which had to do

0:19:56.240 --> 0:19:59.960
<v Speaker 7>with children. I think it's unfortunate that in many ways

0:20:00.440 --> 0:20:04.040
<v Speaker 7>the US media haven't talked about this enough. The Russians

0:20:04.119 --> 0:20:08.680
<v Speaker 7>have abducted about twenty thousand Ukrainian children, taken them away

0:20:08.680 --> 0:20:12.119
<v Speaker 7>from their families, forced them either into the occupied areas

0:20:12.160 --> 0:20:16.359
<v Speaker 7>of Ukraine or to Russia, trying to annihilate their Ukrainian identity.

0:20:16.960 --> 0:20:19.440
<v Speaker 7>And by the way, this is part of a broader problem,

0:20:19.600 --> 0:20:22.159
<v Speaker 7>which is the way that the Russians are treating Ukrainians

0:20:22.240 --> 0:20:26.440
<v Speaker 7>in the occupied areas which right Russia now controls, which

0:20:26.520 --> 0:20:30.840
<v Speaker 7>is treating them very badly, to put it mildly. It's

0:20:30.920 --> 0:20:33.280
<v Speaker 7>good that this has now come up to this level,

0:20:34.000 --> 0:20:36.520
<v Speaker 7>and that the First Lady of Ukraine has apparently written

0:20:36.600 --> 0:20:39.520
<v Speaker 7>a letter to the US First Lady thanking her for

0:20:40.400 --> 0:20:43.280
<v Speaker 7>bringing this up. But I think there should be much

0:20:43.320 --> 0:20:47.679
<v Speaker 7>more focus on the humanitarian catastrophe that has befallen so

0:20:47.760 --> 0:20:53.919
<v Speaker 7>many Ukrainians in this war. What do you mean by that, Well,

0:20:54.000 --> 0:20:56.679
<v Speaker 7>just the first of all, the abduction of children, the

0:20:56.720 --> 0:21:01.600
<v Speaker 7>bombing of civilians, the bombing of maternity hospital, all of

0:21:01.640 --> 0:21:04.080
<v Speaker 7>the things that the Russians have done in terms of

0:21:04.119 --> 0:21:08.919
<v Speaker 7>their attacks on Ukraine. You know what it's done to families,

0:21:09.000 --> 0:21:13.879
<v Speaker 7>the thousands and millions of refugees really and displace people.

0:21:13.960 --> 0:21:16.480
<v Speaker 7>All of that is part of this war, and we

0:21:16.560 --> 0:21:19.840
<v Speaker 7>probably don't read enough about that or see enough in the.

0:21:19.840 --> 0:21:24.159
<v Speaker 5>Media, right And these are attacks that are ongoing do

0:21:24.320 --> 0:21:27.399
<v Speaker 5>this day, even as we have the leaders coming together

0:21:27.920 --> 0:21:31.120
<v Speaker 5>and talking about, you know, a potential end to the war.

0:21:32.400 --> 0:21:37.040
<v Speaker 5>What would an end look like? Is a ceasefire something

0:21:37.200 --> 0:21:40.639
<v Speaker 5>that you know we should be paying closer attention to

0:21:40.960 --> 0:21:45.560
<v Speaker 5>would a ceasefire stop the fighting and these humanitarian issues

0:21:45.600 --> 0:21:46.800
<v Speaker 5>that you bring up.

0:21:47.680 --> 0:21:50.840
<v Speaker 7>Well, a ceasefire might if it were properly observed. But

0:21:50.920 --> 0:21:53.240
<v Speaker 7>even then, if even if they did say, well we

0:21:53.320 --> 0:21:56.560
<v Speaker 7>agree to a cease fire, it has to be properly implemented.

0:21:56.600 --> 0:21:59.720
<v Speaker 7>It has to be properly monitored, so that in itself,

0:22:00.040 --> 0:22:03.680
<v Speaker 7>you know, could be more complicated. And the thing about

0:22:03.760 --> 0:22:06.800
<v Speaker 7>the ceasefire is it would be important that it not

0:22:06.960 --> 0:22:10.760
<v Speaker 7>be one in which Russia could then recoup and then

0:22:10.840 --> 0:22:14.560
<v Speaker 7>attack Ukraine again. So you could have, you know, a

0:22:14.600 --> 0:22:17.040
<v Speaker 7>thirty day cease fire, which is what people were talking

0:22:17.080 --> 0:22:21.240
<v Speaker 7>about a few months ago, and then in the if

0:22:21.800 --> 0:22:24.320
<v Speaker 7>in the interim, then you could negotiate more of a

0:22:24.359 --> 0:22:28.320
<v Speaker 7>peace settlement. I just heard one of the people in

0:22:28.359 --> 0:22:31.760
<v Speaker 7>the press conference talk about maybe some kind of a

0:22:31.880 --> 0:22:34.760
<v Speaker 7>pause if there were to be a trilateral meeting, which

0:22:34.800 --> 0:22:37.040
<v Speaker 7>as I said, I don't think it's very likely soon,

0:22:37.320 --> 0:22:39.160
<v Speaker 7>but at least to have a pause in the fighting.

0:22:39.480 --> 0:22:42.439
<v Speaker 7>But so far, when the Russians have said that they

0:22:42.440 --> 0:22:45.480
<v Speaker 7>would observe there was a brief ceasefire that was supposed

0:22:45.520 --> 0:22:49.680
<v Speaker 7>to be observed, just in terms of attacking the energy infrastructure,

0:22:49.680 --> 0:22:52.600
<v Speaker 7>of the other countries they didn't do it, so even

0:22:52.640 --> 0:22:55.200
<v Speaker 7>that would have to be very closely monitored to make

0:22:55.240 --> 0:22:57.399
<v Speaker 7>sure that the Russians didn't violate it.

0:22:57.760 --> 0:23:00.080
<v Speaker 2>We're speaking with doctor Angelas Stan, senior fellow at the

0:23:00.160 --> 0:23:04.399
<v Speaker 2>Brookings Institution, also the author of Putin's World, Russia against

0:23:04.440 --> 0:23:07.520
<v Speaker 2>the West and with the rest a reminder of where

0:23:07.560 --> 0:23:09.760
<v Speaker 2>we are right now. The President participated in a so

0:23:09.840 --> 0:23:12.240
<v Speaker 2>called family photo with European leaders at the White House

0:23:12.280 --> 0:23:17.720
<v Speaker 2>in the last hour. He, alongside President Zelenski and Europe's leaders,

0:23:17.800 --> 0:23:20.120
<v Speaker 2>spoke after their first meeting. End of the second meeting

0:23:20.160 --> 0:23:24.080
<v Speaker 2>now underway with European and NATO leaders. The President rearea

0:23:24.160 --> 0:23:26.359
<v Speaker 2>that he will call Putin after the meetings and he

0:23:26.400 --> 0:23:28.920
<v Speaker 2>will try to arrange a three way meeting after that.

0:23:29.640 --> 0:23:31.679
<v Speaker 2>Doctor Stent, what do you make of the notion that

0:23:31.720 --> 0:23:35.479
<v Speaker 2>the President at the end of the speaking to reporters

0:23:35.480 --> 0:23:37.959
<v Speaker 2>in the Oval Office, said that he would call Putin

0:23:38.119 --> 0:23:40.359
<v Speaker 2>after the meetings. What does that mean to you? What

0:23:40.400 --> 0:23:41.399
<v Speaker 2>does that symbolize to you?

0:23:42.520 --> 0:23:45.160
<v Speaker 7>Well, it symbolizes to me that even though he's making

0:23:45.160 --> 0:23:48.719
<v Speaker 7>an effort now obviously with our allies to listen to

0:23:48.760 --> 0:23:53.440
<v Speaker 7>that concerns as he tries to bring peace. You know,

0:23:53.480 --> 0:23:56.920
<v Speaker 7>he had a poundy quite what he considered a successful

0:23:57.119 --> 0:24:00.919
<v Speaker 7>summit with President Putin, and you know, he wants to

0:24:01.000 --> 0:24:04.320
<v Speaker 7>keep President Putin informed of what's going on, and so

0:24:04.440 --> 0:24:07.080
<v Speaker 7>it means he wants to keep up all of those

0:24:07.119 --> 0:24:11.480
<v Speaker 7>contacts with President Putin and make sure that Putin doesn't

0:24:11.560 --> 0:24:13.280
<v Speaker 7>change his mind about anything.

0:24:13.920 --> 0:24:18.520
<v Speaker 5>On the prospects here for a trilateral meeting. Do you

0:24:18.560 --> 0:24:22.520
<v Speaker 5>think that something would have to maybe give way before

0:24:22.720 --> 0:24:27.840
<v Speaker 5>we see Trump, Zolensky, and Putin all in the same

0:24:27.920 --> 0:24:28.679
<v Speaker 5>room together.

0:24:30.119 --> 0:24:32.760
<v Speaker 7>Yes, I mean, so far, President Putin has refused to

0:24:32.760 --> 0:24:36.800
<v Speaker 7>sit down with President Zelenski because he doesn't consider Zelensky

0:24:36.880 --> 0:24:40.000
<v Speaker 7>his equal, and because, as he keeps saying, Zelenski is

0:24:40.000 --> 0:24:43.959
<v Speaker 7>an illegitimate president, because they haven't had elections in Ukraine

0:24:44.000 --> 0:24:47.680
<v Speaker 7>since the war began, presidential elections, because there's a war

0:24:47.760 --> 0:24:50.600
<v Speaker 7>going on with martial law. So that is what would

0:24:50.640 --> 0:24:54.320
<v Speaker 7>have to change. It's Putin being willing to do that.

0:24:55.440 --> 0:25:00.080
<v Speaker 7>And again, you know, he's already been criticized by the

0:25:00.160 --> 0:25:04.720
<v Speaker 7>more militant bloggers in Russia for sitting down with President

0:25:04.800 --> 0:25:09.000
<v Speaker 7>Trump and talking about peace. So he in some ways

0:25:09.000 --> 0:25:11.919
<v Speaker 7>he has to worry about domestic opinion, that is to

0:25:11.960 --> 0:25:15.439
<v Speaker 7>say that the people who are you know, fanatically in

0:25:15.480 --> 0:25:17.720
<v Speaker 7>favor of continuing this war, right.

0:25:17.600 --> 0:25:20.560
<v Speaker 5>So, how are we supposed to understand you know, Trump's comments?

0:25:20.600 --> 0:25:24.800
<v Speaker 5>Then he said to reporters today, if everything works out,

0:25:24.840 --> 0:25:28.200
<v Speaker 5>well today, we'll have a try. Lad, We're going to

0:25:28.240 --> 0:25:31.480
<v Speaker 5>work with everyone. I mean, how do we interpret that?

0:25:31.560 --> 0:25:31.800
<v Speaker 4>Then?

0:25:32.640 --> 0:25:35.080
<v Speaker 7>Well, I think that's probably what President Trump would like,

0:25:35.440 --> 0:25:37.360
<v Speaker 7>and he would like people to believe that he can

0:25:37.400 --> 0:25:42.360
<v Speaker 7>bring that about. But you know, that doesn't necessarily mean

0:25:42.400 --> 0:25:44.120
<v Speaker 7>that it's going to happen that. We don't know what

0:25:44.160 --> 0:25:48.000
<v Speaker 7>President Putin told him privately in Alaska. Maybe he believes

0:25:48.000 --> 0:25:51.399
<v Speaker 7>that people would be willing to sit down with President Vilensky.

0:25:51.480 --> 0:25:54.160
<v Speaker 7>But again, those of us that follow this very closely

0:25:54.200 --> 0:25:56.720
<v Speaker 7>and follow what Putin says and does, we'd be more

0:25:56.760 --> 0:25:57.800
<v Speaker 7>skeptical about it.

0:25:58.320 --> 0:26:01.639
<v Speaker 2>On a weapons front, the idea of the US supporting

0:26:02.400 --> 0:26:06.280
<v Speaker 2>Ukraine through weapons sales or weapons sales to European allies,

0:26:07.359 --> 0:26:10.840
<v Speaker 2>does that continue? Does the US have the appetite for that?

0:26:10.880 --> 0:26:14.200
<v Speaker 2>Do politicians have the appetite for that? Jd Vance, the

0:26:14.280 --> 0:26:17.119
<v Speaker 2>Vice president has been outspoken about this, at least before

0:26:17.119 --> 0:26:18.200
<v Speaker 2>he became vice president.

0:26:19.200 --> 0:26:22.560
<v Speaker 7>Well, we've barely started the process by which the Europeans

0:26:22.600 --> 0:26:25.480
<v Speaker 7>are going to be purchasing weapons from the United States

0:26:25.560 --> 0:26:28.680
<v Speaker 7>and then giving them to Ukraine. There's been an agreement

0:26:28.760 --> 0:26:31.040
<v Speaker 7>on it. My sense is that it hasn't actually begun

0:26:31.160 --> 0:26:34.320
<v Speaker 7>yet because the Europeans are waiting to get these weapons

0:26:34.320 --> 0:26:38.040
<v Speaker 7>from the United States. I think that will continue as

0:26:38.119 --> 0:26:43.880
<v Speaker 7>long as President Trump's magabase understands and in fight manufacturing

0:26:43.880 --> 0:26:46.719
<v Speaker 7>those weapons and selling them to the Europeans. These are

0:26:46.760 --> 0:26:49.840
<v Speaker 7>American jobs. I mean, much of the assistance of the

0:26:49.960 --> 0:26:52.920
<v Speaker 7>US has given to Ukraine even since the war began

0:26:53.000 --> 0:26:55.960
<v Speaker 7>in for Overview twenty twenty two, has been you know,

0:26:56.359 --> 0:27:00.320
<v Speaker 7>enhanced the American economy and given Americans who work in

0:27:00.440 --> 0:27:04.239
<v Speaker 7>the arms industry and things like that a job. So

0:27:04.600 --> 0:27:06.600
<v Speaker 7>I think that that would continue. I think that what

0:27:07.200 --> 0:27:09.720
<v Speaker 7>is more difficult I think the President Trump would be

0:27:09.760 --> 0:27:13.800
<v Speaker 7>to say that we'll supply weapons to Ukraine without making

0:27:13.840 --> 0:27:14.600
<v Speaker 7>them pay for it.

0:27:16.640 --> 0:27:19.080
<v Speaker 5>Just zooming out here, what do you think are the

0:27:19.160 --> 0:27:22.760
<v Speaker 5>key takeaways that are going to come out of the

0:27:22.840 --> 0:27:27.520
<v Speaker 5>meeting with the EU? What is at stake for the

0:27:27.560 --> 0:27:31.080
<v Speaker 5>EU leaders here and when we're talking about this, you know,

0:27:31.240 --> 0:27:35.159
<v Speaker 5>this meeting tomorrow, What do you think we're going to

0:27:35.160 --> 0:27:36.119
<v Speaker 5>be talking about.

0:27:37.160 --> 0:27:39.439
<v Speaker 7>Well, I think the EU leaders really would like to

0:27:39.480 --> 0:27:42.520
<v Speaker 7>have a ceasefire in place, even though President Trump has

0:27:42.560 --> 0:27:45.400
<v Speaker 7>now said maybe we don't need one. That'll be one

0:27:45.720 --> 0:27:47.920
<v Speaker 7>thing they'll focus on. And then I think the security

0:27:47.920 --> 0:27:51.960
<v Speaker 7>guarantees talking about, well, if there is if Ukraine is

0:27:52.040 --> 0:27:56.760
<v Speaker 7>forced to make some kind of territorial concession to Russia,

0:27:57.240 --> 0:27:59.680
<v Speaker 7>then are we sure that there will be real security

0:27:59.680 --> 0:28:03.320
<v Speaker 7>guarantees which are backed up by the United States.

0:28:04.520 --> 0:28:07.760
<v Speaker 2>One thing that we were talking about before we heard

0:28:07.880 --> 0:28:12.720
<v Speaker 2>from these European leaders and before we heard from Zelenski,

0:28:13.960 --> 0:28:18.480
<v Speaker 2>was how earlier the European leaders actually met ahead of time.

0:28:20.119 --> 0:28:23.960
<v Speaker 2>I believe it was at the Ukrainian embassy, but do

0:28:24.080 --> 0:28:25.919
<v Speaker 2>not quote me on that. I'm just looking through my

0:28:25.960 --> 0:28:28.840
<v Speaker 2>notes here. They met ahead of their meeting at the

0:28:28.840 --> 0:28:32.920
<v Speaker 2>White House today to get aligned on what their goals were.

0:28:33.840 --> 0:28:36.480
<v Speaker 2>What would you say their goals are obviously they want

0:28:36.520 --> 0:28:38.440
<v Speaker 2>an end to the war, but what do they want

0:28:38.440 --> 0:28:39.239
<v Speaker 2>that end to look like?

0:28:39.280 --> 0:28:40.280
<v Speaker 3>What are they unified on?

0:28:41.560 --> 0:28:44.160
<v Speaker 7>Well, they did meet at the Ukrainian embassy earlier today.

0:28:44.160 --> 0:28:47.640
<v Speaker 7>You can look at the pictures of it. Great, Yeah,

0:28:47.720 --> 0:28:50.680
<v Speaker 7>I mean they wanted to make sure that this war

0:28:50.840 --> 0:28:54.000
<v Speaker 7>ends in such a way that Russia. I mean, it's

0:28:54.040 --> 0:28:56.760
<v Speaker 7>easy to say, as President Trump did early, will never

0:28:56.840 --> 0:29:01.080
<v Speaker 7>again attack Ukraine, given you know of years of history,

0:29:01.120 --> 0:29:03.080
<v Speaker 7>I think you have to be cautious about saying that,

0:29:03.400 --> 0:29:06.960
<v Speaker 7>but to ensure that for the foreseeable future Russia will

0:29:07.000 --> 0:29:10.400
<v Speaker 7>not be tempted to attack Ukraine again, and that Russia

0:29:10.560 --> 0:29:14.520
<v Speaker 7>under Putin even will be willing to accept an independent,

0:29:14.720 --> 0:29:20.240
<v Speaker 7>sovereign Ukraine, which is free to make its own decisions

0:29:20.280 --> 0:29:23.120
<v Speaker 7>if we put the NATO issue aside about where to

0:29:23.160 --> 0:29:26.120
<v Speaker 7>align itself in foreign policy. So they want to make

0:29:26.160 --> 0:29:28.440
<v Speaker 7>sure not only that the war ends, but then it

0:29:28.520 --> 0:29:31.239
<v Speaker 7>won't start again in two or three years.

0:29:32.480 --> 0:29:34.880
<v Speaker 5>I want to get your thoughts on NATO here, just

0:29:34.920 --> 0:29:38.160
<v Speaker 5>as we talk about this meeting with the EU. Is

0:29:38.200 --> 0:29:42.840
<v Speaker 5>there any chance that we would see Ukraine get added

0:29:43.200 --> 0:29:46.479
<v Speaker 5>to NATO or is all of this kind of making

0:29:46.640 --> 0:29:48.880
<v Speaker 5>the chances lesson or.

0:29:48.840 --> 0:29:53.760
<v Speaker 2>Would that be a precondition on Vladimir Putin's side that

0:29:53.840 --> 0:29:57.200
<v Speaker 2>he says, no, you cannot add Ukraine to NATO.

0:29:58.520 --> 0:30:01.320
<v Speaker 7>Well, Putin, I mean that's one of the conditions he has,

0:30:01.360 --> 0:30:04.479
<v Speaker 7>which is that Ukrainian encounter, Ukraine can't join NATO. But

0:30:04.520 --> 0:30:06.800
<v Speaker 7>I don't think anyone's going to agree to that. I

0:30:06.800 --> 0:30:09.080
<v Speaker 7>think what the US side would say is not for

0:30:09.120 --> 0:30:12.880
<v Speaker 7>the time being. And I think certainly President Trump has

0:30:12.920 --> 0:30:17.040
<v Speaker 7>said that might Ukraine join NATO in the future, That's

0:30:17.120 --> 0:30:20.880
<v Speaker 7>quite possible. It'll depend, you know, on what happens to NATO.

0:30:21.200 --> 0:30:24.080
<v Speaker 7>It'll depend on what happens after the end of the war.

0:30:25.200 --> 0:30:29.640
<v Speaker 7>So it's not on the horizon. But it also I

0:30:29.680 --> 0:30:33.880
<v Speaker 7>think you can't expect Ukraine or it's European backers to

0:30:33.920 --> 0:30:35.600
<v Speaker 7>say that it will never join NATA.

0:30:35.920 --> 0:30:39.400
<v Speaker 2>Why do you think that European leaders are right now

0:30:40.920 --> 0:30:43.440
<v Speaker 2>all visiting the White House three and a half years

0:30:44.200 --> 0:30:48.080
<v Speaker 2>into this. Is it President Trump who's brought them together?

0:30:48.520 --> 0:30:51.400
<v Speaker 2>Why didn't they do this two weeks after the war started,

0:30:51.440 --> 0:30:53.520
<v Speaker 2>a month after the war started, a year after the

0:30:53.520 --> 0:30:54.040
<v Speaker 2>war started.

0:30:54.040 --> 0:30:55.080
<v Speaker 3>Why is this happening now?

0:30:55.920 --> 0:31:00.000
<v Speaker 7>Well, because I think under the Biden administration, first of all,

0:31:00.120 --> 0:31:03.080
<v Speaker 7>they believe that the US was giving a lot of

0:31:03.120 --> 0:31:05.520
<v Speaker 7>support to Ukraine, and they let the US do that.

0:31:05.560 --> 0:31:09.160
<v Speaker 7>They were still in the mindset that the US was

0:31:09.200 --> 0:31:12.600
<v Speaker 7>the most powerful country, had all the weapons. So I

0:31:12.600 --> 0:31:14.920
<v Speaker 7>think it's a combination effect is I think it's because

0:31:14.920 --> 0:31:17.320
<v Speaker 7>the war has gone on for so long. Then you

0:31:17.440 --> 0:31:19.640
<v Speaker 7>have President Trump coming in and saying he's going to

0:31:19.720 --> 0:31:24.280
<v Speaker 7>end the war quickly, also questioning NATO, also questioning why

0:31:24.840 --> 0:31:27.800
<v Speaker 7>the US should be supporting NATO, all of these things.

0:31:27.880 --> 0:31:29.840
<v Speaker 7>I think what happened at the end of February with

0:31:29.880 --> 0:31:34.760
<v Speaker 7>the disastrous Oval Office meeting the previous one with President

0:31:34.840 --> 0:31:37.440
<v Speaker 7>Zelanski was a wake up call. But I think the

0:31:37.480 --> 0:31:40.320
<v Speaker 7>real wake up call is understanding that they cannot any

0:31:40.440 --> 0:31:44.520
<v Speaker 7>longer rely on the United States to support them for

0:31:44.600 --> 0:31:47.480
<v Speaker 7>their security or really to provide for their security in

0:31:47.480 --> 0:31:49.480
<v Speaker 7>the way that it used to, and that they have

0:31:49.600 --> 0:31:52.640
<v Speaker 7>to take much more of a burden on themselves. And

0:31:52.680 --> 0:31:56.080
<v Speaker 7>then I think the other factor is clearly realizing after

0:31:56.320 --> 0:31:59.760
<v Speaker 7>the Alaska summit, but even before then, that they weren't

0:31:59.800 --> 0:32:03.080
<v Speaker 7>quite sure that President Trump, you know, wasn't willing to

0:32:03.120 --> 0:32:06.320
<v Speaker 7>tell Ukraine that it had to exceed to Russian demands,

0:32:07.160 --> 0:32:10.240
<v Speaker 7>which would you know, could also be quite dangerous for Europe.

0:32:10.240 --> 0:32:12.160
<v Speaker 7>So I think it's a combination of factors.

0:32:12.400 --> 0:32:13.760
<v Speaker 3>Do you see it as a good sign though?

0:32:14.360 --> 0:32:17.280
<v Speaker 7>I do, because I think that President Trump, first of all,

0:32:17.320 --> 0:32:21.280
<v Speaker 7>will understand now that Europeans are really quite united about this,

0:32:21.480 --> 0:32:23.760
<v Speaker 7>and that they're back in Ukraine.

0:32:24.080 --> 0:32:25.760
<v Speaker 2>So, doctor stan I want to end the interview with

0:32:25.800 --> 0:32:28.320
<v Speaker 2>the question that I always ask you, and I've asked

0:32:28.360 --> 0:32:31.160
<v Speaker 2>you this for the last three and a half years,

0:32:32.120 --> 0:32:33.600
<v Speaker 2>and I want to know if your answer has changed

0:32:33.640 --> 0:32:34.320
<v Speaker 2>based on today.

0:32:34.320 --> 0:32:35.520
<v Speaker 3>How does this war end?

0:32:35.960 --> 0:32:38.719
<v Speaker 7>I don't think anyone knows how it ends yet. I

0:32:38.720 --> 0:32:41.280
<v Speaker 7>mean the you know, the best solution would be a

0:32:41.320 --> 0:32:46.200
<v Speaker 7>negotiated settlement which doesn't take too long, which doesn't involve

0:32:46.240 --> 0:32:50.440
<v Speaker 7>too many concessions, and which guarantees that Russia will not

0:32:50.640 --> 0:32:53.640
<v Speaker 7>in the near future again try and attack Ukraine.

0:32:54.080 --> 0:32:56.120
<v Speaker 2>Is it closer now to ending than at any point

0:32:56.160 --> 0:32:58.360
<v Speaker 2>that then we spoke to you in the past three

0:32:58.360 --> 0:32:59.000
<v Speaker 2>and a half years.

0:32:59.520 --> 0:33:03.680
<v Speaker 7>Possible? I mean that there's too much that we don't know,

0:33:03.840 --> 0:33:04.880
<v Speaker 7>but possibly it is.

0:33:05.000 --> 0:33:08.640
<v Speaker 2>Yeah, Okay, want to let you go even so generous

0:33:08.640 --> 0:33:11.600
<v Speaker 2>with your time today, Doctor Stent, really appreciate you joining us.

0:33:11.640 --> 0:33:15.160
<v Speaker 2>That's doctor Angela Stent. She's senior fellow at the Brookings Institution.

0:33:15.280 --> 0:33:18.520
<v Speaker 2>She's the author of Putin's World, Russia Against the West

0:33:18.560 --> 0:33:21.440
<v Speaker 2>and With the Rest. She's also a former National Intelligence

0:33:21.480 --> 0:33:25.200
<v Speaker 2>officer for Russia and Eurasia at the National Intelligence Council.

0:33:25.240 --> 0:33:28.200
<v Speaker 2>She also served in the Office of Policy Planning at

0:33:28.200 --> 0:33:29.920
<v Speaker 2>the US Department of State. She's been a go to

0:33:30.080 --> 0:33:32.560
<v Speaker 2>voice over the last three and a half years for US,

0:33:33.040 --> 0:33:36.520
<v Speaker 2>as we've reported on Russia's invasion of Ukraine.

0:33:36.840 --> 0:33:37.600
<v Speaker 3>Stay with us.

0:33:37.680 --> 0:33:45.440
<v Speaker 2>More from Bloomberg Business Week Daily coming up after this.

0:33:45.440 --> 0:33:49.560
<v Speaker 1>This is the Bloomberg Business Week Daily Podcast. Listen live

0:33:49.640 --> 0:33:52.880
<v Speaker 1>each weekday starting at two pm Eastern on Applecarflay, and

0:33:52.880 --> 0:33:55.920
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0:33:56.040 --> 0:33:59.680
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0:34:00.240 --> 0:34:02.160
<v Speaker 1>Just say Alexa Play Bloomberg.

0:34:02.200 --> 0:34:06.360
<v Speaker 2>Eleven thirty shares of the green hydrogen company Plug Power,

0:34:06.480 --> 0:34:08.759
<v Speaker 2>closed two and a half percent lower last Tuesday. That

0:34:08.840 --> 0:34:11.240
<v Speaker 2>was the first day of trading after the company reported

0:34:11.280 --> 0:34:13.960
<v Speaker 2>net revenue for the second quarter that came in above estimates,

0:34:14.440 --> 0:34:17.560
<v Speaker 2>but the bottom line was the issue. EPs missed the

0:34:17.640 --> 0:34:23.360
<v Speaker 2>average analyst estimate. Plug provides hydrogen products including electrolizers, hydrogen transport,

0:34:23.520 --> 0:34:27.239
<v Speaker 2>storage and dispensing solutions, and more to a variety of

0:34:27.239 --> 0:34:32.240
<v Speaker 2>customers including Walmart, Amazon, Home Depot, Airbus, at and t Kroger, FedEx, Pgene,

0:34:32.360 --> 0:34:35.880
<v Speaker 2>Coca Cola, and more. We've got back with us Andy Marsh,

0:34:35.880 --> 0:34:38.160
<v Speaker 2>the CEO of Plug power. He joins us from just

0:34:38.239 --> 0:34:41.279
<v Speaker 2>outside of Albany, Andy. Always good to have you on

0:34:41.320 --> 0:34:43.759
<v Speaker 2>the program. I want to start with your customers. I

0:34:43.800 --> 0:34:46.839
<v Speaker 2>mentioned just about ten of them. The list goes on,

0:34:47.480 --> 0:34:50.240
<v Speaker 2>what are you hearing from them in a world where

0:34:51.440 --> 0:34:56.080
<v Speaker 2>green energy is no longer sort of the buzz phrase,

0:34:56.160 --> 0:34:59.920
<v Speaker 2>the buzzword, there's not the same government incentives for this

0:35:00.080 --> 0:35:01.880
<v Speaker 2>stuff that there was in the last administration.

0:35:01.920 --> 0:35:03.160
<v Speaker 3>What are you hearing from them right now?

0:35:04.480 --> 0:35:08.960
<v Speaker 6>So the last part of that, tim's not true. The

0:35:09.040 --> 0:35:13.080
<v Speaker 6>incentives for forty eighty, which is the tax credit for

0:35:13.160 --> 0:35:17.560
<v Speaker 6>fuel cells and the last bill is actually much better

0:35:17.640 --> 0:35:18.200
<v Speaker 6>than it was.

0:35:18.320 --> 0:35:20.160
<v Speaker 2>Well, I was talking about green energy as sort of

0:35:20.160 --> 0:35:22.120
<v Speaker 2>a monoliss just to be clear.

0:35:23.200 --> 0:35:29.680
<v Speaker 6>Yeah, So when I look at first globally, the incentives

0:35:29.719 --> 0:35:34.800
<v Speaker 6>for hydrogen and fuel cells and green energy remains robust.

0:35:35.239 --> 0:35:38.800
<v Speaker 6>And if you look at our business in the second quarter,

0:35:39.360 --> 0:35:42.680
<v Speaker 6>our revenue in Europe for electoralizers and all of it's

0:35:42.760 --> 0:35:47.520
<v Speaker 6>really primarily Europe actually tripled to forty five million dollars

0:35:47.560 --> 0:35:50.080
<v Speaker 6>from what it was a year ago. And here in

0:35:50.080 --> 0:35:53.919
<v Speaker 6>the United States, you know, when we look at the

0:35:53.960 --> 0:35:57.680
<v Speaker 6>tax lands the credit landscape, we actually see it better

0:35:57.760 --> 0:35:59.839
<v Speaker 6>today that it was a year ago.

0:36:00.360 --> 0:36:01.960
<v Speaker 3>So why is that happy?

0:36:02.719 --> 0:36:06.240
<v Speaker 6>Well, I think because when you looked at the tax

0:36:06.280 --> 0:36:10.600
<v Speaker 6>credit for fuel cells, it was you know, not well

0:36:11.239 --> 0:36:15.359
<v Speaker 6>structured or positioned in forty eight eight, and we see

0:36:15.400 --> 0:36:19.600
<v Speaker 6>an extension of what was essentially the ITC, which was

0:36:19.640 --> 0:36:22.840
<v Speaker 6>extended the last time under President Trump in twenty eighteen

0:36:23.600 --> 0:36:27.120
<v Speaker 6>in the latest bill, which extends a credit for fuel

0:36:27.160 --> 0:36:29.759
<v Speaker 6>cells which is used by Amazon, Walmart and many of

0:36:29.800 --> 0:36:33.879
<v Speaker 6>the customers you mentioned through twenty thirty two. So we're

0:36:33.920 --> 0:36:38.880
<v Speaker 6>actually pretty thrilled with what happened for hydrogen, especially in

0:36:38.920 --> 0:36:40.680
<v Speaker 6>the last bill.

0:36:40.840 --> 0:36:45.120
<v Speaker 5>When you look at plug Power's earnings, the margins are

0:36:45.400 --> 0:36:48.919
<v Speaker 5>still negative, but they have improved from the last year.

0:36:49.600 --> 0:36:51.440
<v Speaker 5>What are your thoughts on just how much more runway

0:36:51.440 --> 0:36:54.560
<v Speaker 5>you guys need before plug power is consistently profitable.

0:36:55.640 --> 0:36:59.440
<v Speaker 6>Yeah, so you know, we I think you hit on

0:36:59.520 --> 0:37:02.279
<v Speaker 6>the point. You know, we moved gross margins from a

0:37:02.360 --> 0:37:06.080
<v Speaker 6>year ago by over sixty percent, and we are targeting

0:37:06.200 --> 0:37:09.880
<v Speaker 6>to be gross margin zero by the fourth quarter. And

0:37:09.920 --> 0:37:12.920
<v Speaker 6>there's a clear map with our hydrogen plants and the

0:37:12.960 --> 0:37:16.879
<v Speaker 6>improvements we've seen in service and more importantly, selling more

0:37:17.480 --> 0:37:20.200
<v Speaker 6>and that really helps us a great deal. And we're

0:37:20.239 --> 0:37:23.319
<v Speaker 6>targeting being EBODOS positive by the end of next year.

0:37:23.960 --> 0:37:27.160
<v Speaker 6>And I think with our project Quantum Leap, where we

0:37:27.280 --> 0:37:32.520
<v Speaker 6>really focused on cost and selling, that we are on

0:37:32.600 --> 0:37:35.160
<v Speaker 6>the right track. And I think you're beginning to see

0:37:35.160 --> 0:37:39.160
<v Speaker 6>it in the financials. Even the miss when EPs was

0:37:39.719 --> 0:37:43.640
<v Speaker 6>right downs, which were non cash right downs associated with

0:37:43.719 --> 0:37:46.920
<v Speaker 6>our plants. That really align the business for the future

0:37:46.960 --> 0:37:48.160
<v Speaker 6>to be successful.

0:37:48.480 --> 0:37:51.560
<v Speaker 2>What's the US market right now for green hydrogen that's

0:37:51.600 --> 0:37:55.400
<v Speaker 2>hydrogen made from water using clean electricity to power the

0:37:55.440 --> 0:37:57.120
<v Speaker 2>electrolysis process.

0:37:57.960 --> 0:38:01.880
<v Speaker 6>So big straight it is a bit slower than what

0:38:01.960 --> 0:38:04.399
<v Speaker 6>you see in Europe and other places. You know, our

0:38:04.480 --> 0:38:09.360
<v Speaker 6>primarily focus for electoralizers are really Europe Australia where the

0:38:09.400 --> 0:38:13.680
<v Speaker 6>climate's right. But we actually operate the largest green hydrogen

0:38:13.760 --> 0:38:17.680
<v Speaker 6>liquid hydrogen plant in the world at the moment in Georgia.

0:38:18.160 --> 0:38:21.880
<v Speaker 6>And when I looked I reviewed this morning our demand

0:38:21.960 --> 0:38:25.000
<v Speaker 6>for hydrogen from the second quarter of the fourth quarter,

0:38:25.520 --> 0:38:29.120
<v Speaker 6>we actually see that our daily usage go up from

0:38:29.160 --> 0:38:32.280
<v Speaker 6>fifty five tons per day to about sixty seven tons

0:38:32.640 --> 0:38:35.799
<v Speaker 6>per day by the end of the year. So we're

0:38:35.880 --> 0:38:39.640
<v Speaker 6>using our plants, we're creating green hydrogen. We're involved in

0:38:39.640 --> 0:38:45.560
<v Speaker 6>some blue hydrogen projects, so we feel comfortable about the

0:38:45.600 --> 0:38:49.520
<v Speaker 6>long term trajectory and even near term trajectory for hydrogen

0:38:49.560 --> 0:38:50.560
<v Speaker 6>in the United States.

0:38:51.120 --> 0:38:53.879
<v Speaker 5>Talk a little bit more about that demand and where

0:38:53.920 --> 0:38:58.320
<v Speaker 5>it's coming from. Are you seeing customers, you know, pivoting

0:38:58.400 --> 0:39:03.319
<v Speaker 5>from other sources of energy or are you seeing you know,

0:39:03.480 --> 0:39:08.239
<v Speaker 5>just increasing need for more sources of energy and that's

0:39:08.280 --> 0:39:10.720
<v Speaker 5>what's really driving your growth here.

0:39:11.880 --> 0:39:14.799
<v Speaker 6>That's actually a real good question because when we look

0:39:14.840 --> 0:39:18.759
<v Speaker 6>at the world the United States, with what we've deployed

0:39:18.800 --> 0:39:22.640
<v Speaker 6>already about it's you know, two hundred and seventy five

0:39:22.760 --> 0:39:26.919
<v Speaker 6>sites in our material handling business across the US. We've

0:39:26.960 --> 0:39:31.920
<v Speaker 6>actually taken off the grid approximately five hundred megawatts of electricity,

0:39:32.680 --> 0:39:36.040
<v Speaker 6>and as I think everybody knows, it has become more

0:39:36.040 --> 0:39:41.399
<v Speaker 6>and more challenging to bring electricity to you know, there's

0:39:41.440 --> 0:39:44.239
<v Speaker 6>over a three and a half year backlup log to

0:39:44.280 --> 0:39:50.319
<v Speaker 6>get electricity to facilities. No typical distribution center. We take

0:39:50.360 --> 0:39:55.000
<v Speaker 6>off two to three megawatt off the grid, which can

0:39:55.000 --> 0:39:58.840
<v Speaker 6>then be used for things like increasing freezer capabilities. So

0:39:58.920 --> 0:40:01.480
<v Speaker 6>if you think about if you're or fuel food retailer

0:40:02.000 --> 0:40:05.600
<v Speaker 6>and you want to sell more frozen goods, which is

0:40:05.640 --> 0:40:09.640
<v Speaker 6>a growth area, one way you can One way you

0:40:09.680 --> 0:40:13.239
<v Speaker 6>can increase the size of your freezer and not have

0:40:13.320 --> 0:40:18.520
<v Speaker 6>to worry about the power needs is actually use fuel

0:40:18.600 --> 0:40:20.680
<v Speaker 6>sales and hydrogen from plug Power.

0:40:21.160 --> 0:40:24.120
<v Speaker 2>We're speaking with Andy Marsh, the CEO of Plug Power,

0:40:24.200 --> 0:40:26.719
<v Speaker 2>joining us from just outside of Albany. Andy, I want

0:40:26.719 --> 0:40:30.960
<v Speaker 2>to go back to regulatory issues, tax credits and that

0:40:31.040 --> 0:40:33.640
<v Speaker 2>sort of thing, because you did say that demand is better.

0:40:33.760 --> 0:40:35.239
<v Speaker 2>We were in a better position than you were a

0:40:35.280 --> 0:40:38.040
<v Speaker 2>year ago. Our own will wide and team reporting that

0:40:38.120 --> 0:40:40.720
<v Speaker 2>a year ago credits were expected to help lead about

0:40:40.719 --> 0:40:43.840
<v Speaker 2>one point two million metric tons of annual green hydrogen

0:40:43.880 --> 0:40:47.799
<v Speaker 2>production by twenty thirty. That's according to BNF or in

0:40:47.880 --> 0:40:51.400
<v Speaker 2>house Bloomberg New Energy Finance. Now projects with just one

0:40:51.480 --> 0:40:54.320
<v Speaker 2>hundred and fifty thousand tons of production capacity are expected

0:40:54.360 --> 0:40:59.520
<v Speaker 2>to qualify for the incentives, dramatically reducing anticipated US output.

0:41:00.160 --> 0:41:04.000
<v Speaker 2>Is after the Trump administration's tax and spending legislation significantly

0:41:04.040 --> 0:41:06.200
<v Speaker 2>limited tax credits to produce the fuel.

0:41:06.840 --> 0:41:07.799
<v Speaker 3>How is that affecting you?

0:41:09.719 --> 0:41:12.560
<v Speaker 6>Well, when I take a when I look at I'm

0:41:12.600 --> 0:41:17.040
<v Speaker 6>already using the tax credits. We expect to have online

0:41:18.239 --> 0:41:23.800
<v Speaker 6>our additional Texas plant by twenty twenty eight before they fire,

0:41:23.920 --> 0:41:27.359
<v Speaker 6>which allows us to use those credits through twenty thirty two.

0:41:28.080 --> 0:41:31.759
<v Speaker 6>I think when we look at our own needs, you know,

0:41:31.800 --> 0:41:36.399
<v Speaker 6>we're looking at other expansion opportunities. You know, we think

0:41:36.440 --> 0:41:39.879
<v Speaker 6>that we'll be able to generate the hydrogen to meet

0:41:39.960 --> 0:41:43.360
<v Speaker 6>our customers' needs and be able to take tax credits

0:41:43.360 --> 0:41:47.000
<v Speaker 6>through twenty thirty two. So, you know, quite honestly, I'm

0:41:47.120 --> 0:41:49.839
<v Speaker 6>very comfortable with the present legislation.

0:41:51.520 --> 0:41:54.719
<v Speaker 5>Back in January, there was a Bloomberg News story about

0:41:55.760 --> 0:41:59.839
<v Speaker 5>the White House confirming a one point six billion loan

0:42:00.120 --> 0:42:05.920
<v Speaker 5>guarantee for plug Power to build hydrogen plants. How have

0:42:06.040 --> 0:42:09.880
<v Speaker 5>you guys received that that loan yet and how crucial

0:42:10.000 --> 0:42:13.240
<v Speaker 5>is support like that to continue to grow plug Power.

0:42:14.960 --> 0:42:20.000
<v Speaker 6>It's important, but it's not you know, we will still

0:42:20.040 --> 0:42:25.879
<v Speaker 6>move ahead with building plants. Ultimately, we're focused, and I've

0:42:25.920 --> 0:42:29.960
<v Speaker 6>been down to the DOE recently, uh and we're working

0:42:30.000 --> 0:42:32.840
<v Speaker 6>on details to make sure we can pull down funding

0:42:33.360 --> 0:42:37.480
<v Speaker 6>for the plant in Texas, which is a plant that

0:42:37.719 --> 0:42:43.919
<v Speaker 6>gets very very low cost electric electric electric energy from

0:42:44.040 --> 0:42:47.479
<v Speaker 6>a next era wind farm. When we take a look

0:42:47.480 --> 0:42:51.120
<v Speaker 6>at that, we're working through the final details to start

0:42:51.160 --> 0:42:54.480
<v Speaker 6>being able to pull down funding from the DOE. I know,

0:42:54.560 --> 0:42:58.319
<v Speaker 6>they've canceled many projects. We haven't been on the cancel list,

0:42:58.360 --> 0:43:02.080
<v Speaker 6>and we have a good relatelationship. I think the Trump

0:43:02.120 --> 0:43:05.920
<v Speaker 6>administration and their goals of being energy dominant. You know,

0:43:05.960 --> 0:43:09.600
<v Speaker 6>the world's going to one green saff the world's going

0:43:09.680 --> 0:43:13.160
<v Speaker 6>to one green pneumonia. The US is well positioned to

0:43:13.160 --> 0:43:16.840
<v Speaker 6>be the leader in providing those fuels in green hydrogen

0:43:17.280 --> 0:43:22.440
<v Speaker 6>is critical the becoming energy dominant for the long term. Additionally,

0:43:22.520 --> 0:43:27.000
<v Speaker 6>hydrogen generation is really important for national security. I mean

0:43:27.160 --> 0:43:33.279
<v Speaker 6>next to SpaceX, all the vehicles use hydrogen, so we

0:43:33.400 --> 0:43:36.640
<v Speaker 6>really think about the long term benefits. And then on

0:43:36.719 --> 0:43:39.880
<v Speaker 6>top of that, when you think about hydrogen, over thirty

0:43:39.920 --> 0:43:45.520
<v Speaker 6>percent of detail food moved through a plug power fuel cells. Boy,

0:43:46.120 --> 0:43:47.960
<v Speaker 6>you don't want that disrupted overnight.

0:43:48.160 --> 0:43:48.680
<v Speaker 3>No you don't.

0:43:48.719 --> 0:43:50.720
<v Speaker 2>Andy, We only have about a minute and a half left,

0:43:50.760 --> 0:43:52.399
<v Speaker 2>and I want to talk about the stock price. It's

0:43:52.440 --> 0:43:55.560
<v Speaker 2>down about ninety seven percent since the twenty twenty one highs.

0:43:55.880 --> 0:43:58.360
<v Speaker 2>Even though you're a relatively small company, you're still among

0:43:58.360 --> 0:44:01.680
<v Speaker 2>at least today the most actively traded stocks, with fifty

0:44:01.719 --> 0:44:06.480
<v Speaker 2>four point seven million dollars or million shares rather trading today.

0:44:06.800 --> 0:44:10.600
<v Speaker 2>It's massive. The volume this year has been massive. You've

0:44:10.600 --> 0:44:13.560
<v Speaker 2>got twenty eight percent of your shares floated. What's your

0:44:13.560 --> 0:44:16.239
<v Speaker 2>message to investors and traders right now.

0:44:17.760 --> 0:44:20.680
<v Speaker 6>Well, I think I would tell them it's a great

0:44:20.680 --> 0:44:23.239
<v Speaker 6>opportunity to come in. You. You can look at the

0:44:23.239 --> 0:44:28.520
<v Speaker 6>financials revenue growing at twenty percent, gross margin improving dramatically.

0:44:29.800 --> 0:44:34.080
<v Speaker 6>The deployments in Europe, where the electoralizer industry is really

0:44:34.120 --> 0:44:38.040
<v Speaker 6>happening today, has tripled in the past year. You know,

0:44:38.120 --> 0:44:43.160
<v Speaker 6>I think this is the opportunity to successfully enter the

0:44:43.239 --> 0:44:45.960
<v Speaker 6>stock and it's one of the reasons our CFO has

0:44:46.680 --> 0:44:51.680
<v Speaker 6>made significant investments. And I'm putting about twenty five percent

0:44:51.719 --> 0:44:54.920
<v Speaker 6>of my salary to work buying stock, actually fifty percent

0:44:54.920 --> 0:44:57.920
<v Speaker 6>of my salary to work buying stock every week.

0:44:59.360 --> 0:45:01.920
<v Speaker 2>Andy, thanks for coming on. Appreciate you taking the time

0:45:01.960 --> 0:45:03.960
<v Speaker 2>this afternoon. Always get a check in with you, and

0:45:04.000 --> 0:45:05.880
<v Speaker 2>it has been quite a few months since we last spoke,

0:45:05.960 --> 0:45:06.880
<v Speaker 2>so don't.

0:45:06.640 --> 0:45:07.960
<v Speaker 3>Be a stranger. Come back soon.

0:45:08.000 --> 0:45:12.239
<v Speaker 2>Andy Marsh, CEO of Plug Power, joining us from just

0:45:12.320 --> 0:45:13.520
<v Speaker 2>outside of Albany.

0:45:14.600 --> 0:45:15.359
<v Speaker 3>Stay with us.

0:45:15.440 --> 0:45:18.440
<v Speaker 2>More from Bloomberg Business Week Daily coming up after this.

0:45:22.680 --> 0:45:26.560
<v Speaker 1>You're listening to the Bloomberg Business Week Daily podcast. Catch

0:45:26.640 --> 0:45:29.800
<v Speaker 1>us live weekday afternoons from two to five Eastering. Listen

0:45:29.880 --> 0:45:33.440
<v Speaker 1>on Applecarplay and Android Auto with the Bloomberg Business app,

0:45:33.600 --> 0:45:35.760
<v Speaker 1>or watch us live on YouTube.

0:45:36.960 --> 0:45:38.320
<v Speaker 3>Roamco.

0:45:38.840 --> 0:45:39.839
<v Speaker 6>I'll bet you let me drive.

0:45:40.080 --> 0:45:42.440
<v Speaker 2>Oh no, no, no, no, this is not a twin.

0:45:44.520 --> 0:45:49.880
<v Speaker 1>Holright please, I'll do Excuse me, I want to drive.

0:45:48.719 --> 0:45:51.840
<v Speaker 2>It's good question.

0:45:55.800 --> 0:45:58.680
<v Speaker 1>This is the Drive to the Clothes Punk's a thing

0:46:00.160 --> 0:46:01.840
<v Speaker 1>on Bloomberg Radio.

0:46:03.640 --> 0:46:05.960
<v Speaker 5>All right, welcome back, guys, it's time for the Drive

0:46:06.040 --> 0:46:08.799
<v Speaker 5>to the Close. We're here today with Andrew Krye. He's

0:46:08.840 --> 0:46:13.040
<v Speaker 5>co chief investment officer at Crescent Grove Advisors. It's got

0:46:13.080 --> 0:46:17.680
<v Speaker 5>about five billion dollars in aum. Andrew's joining us from Milwaukee.

0:46:17.760 --> 0:46:21.360
<v Speaker 5>We've been talking all about geopolitics today. We've been talking

0:46:21.360 --> 0:46:25.360
<v Speaker 5>about the meeting at the White House with Ukrainian President Zelenski,

0:46:25.560 --> 0:46:29.440
<v Speaker 5>Trump and a number of other European leaders. So we

0:46:29.520 --> 0:46:32.120
<v Speaker 5>have to start there. Andrew, how are you factoring in

0:46:32.880 --> 0:46:36.959
<v Speaker 5>geopolitical risk into your investment strategy right now?

0:46:38.400 --> 0:46:41.319
<v Speaker 8>You know, I would say from our perspective, I think

0:46:41.320 --> 0:46:45.319
<v Speaker 8>the markets have largely been desensitized to the geopolitical circumstances

0:46:45.360 --> 0:46:47.600
<v Speaker 8>that we've found ourselves in now. For the last several years.

0:46:47.640 --> 0:46:50.560
<v Speaker 8>Whether you look at Russia, Ukraine, you look at the

0:46:50.640 --> 0:46:53.879
<v Speaker 8>situation in the Middle East, perhaps there's a little bit

0:46:53.920 --> 0:46:56.919
<v Speaker 8>of excess risk premium that could still be wrung out

0:46:56.960 --> 0:46:59.600
<v Speaker 8>if we were to find some sort of resolution over

0:46:59.640 --> 0:47:02.279
<v Speaker 8>the coming weeks and months. But nonetheless, we tend to

0:47:02.280 --> 0:47:04.759
<v Speaker 8>think it's more about just the fundamental economic drivers, the

0:47:04.760 --> 0:47:08.120
<v Speaker 8>business cycle. The FED. You know, we're more focused, let's say,

0:47:08.160 --> 0:47:11.239
<v Speaker 8>on Jackson Hole this week, than we are on what's

0:47:11.239 --> 0:47:14.040
<v Speaker 8>happening with these geopolitical negotiations that are happening.

0:47:14.680 --> 0:47:18.800
<v Speaker 2>Let's let's go to the Federal Reserve and to Friday

0:47:18.840 --> 0:47:22.320
<v Speaker 2>where we'll hear from FED chair j Powell. Emily, remind

0:47:22.360 --> 0:47:25.120
<v Speaker 2>me what was the FED theme this year?

0:47:25.200 --> 0:47:27.040
<v Speaker 5>Oh, I don't have it in front of the title.

0:47:27.239 --> 0:47:29.600
<v Speaker 5>It's labor. It's about It's about labor, and we had

0:47:29.640 --> 0:47:30.440
<v Speaker 5>some fancy words.

0:47:30.520 --> 0:47:33.960
<v Speaker 2>We spoke to Jim Bianco earlier about the changing labor market,

0:47:34.160 --> 0:47:37.080
<v Speaker 2>and I mean, he's kind of just blowing my mind

0:47:37.160 --> 0:47:40.040
<v Speaker 2>with this idea that if we don't have immigration into

0:47:40.080 --> 0:47:42.719
<v Speaker 2>the US, the numbers that we'll see when it comes

0:47:42.800 --> 0:47:48.200
<v Speaker 2>to the monthly jobs report will be very tiny. And

0:47:48.239 --> 0:47:52.920
<v Speaker 2>I'm wondering how you're looking at the labor market. Obviously

0:47:52.960 --> 0:47:55.840
<v Speaker 2>that's half of the Fed's dual mandate.

0:47:56.680 --> 0:47:58.000
<v Speaker 3>What does J. Powell say about it?

0:47:58.000 --> 0:48:00.720
<v Speaker 2>How does it shift in this in this no immigrant

0:48:00.800 --> 0:48:01.960
<v Speaker 2>immigration environment.

0:48:03.080 --> 0:48:05.000
<v Speaker 8>Yeah, I think that's a key factor to look at

0:48:05.000 --> 0:48:08.400
<v Speaker 8>for sure. I think you've ended up in this situation

0:48:08.480 --> 0:48:10.839
<v Speaker 8>where we're kind of low hiring, low firing. I think

0:48:10.840 --> 0:48:13.400
<v Speaker 8>that's actually a phrase he's used now several times. But

0:48:13.840 --> 0:48:16.000
<v Speaker 8>you know, we've got a situation where one of the

0:48:16.080 --> 0:48:18.520
<v Speaker 8>metrics we look at is continuing claims is a percentage

0:48:18.520 --> 0:48:21.439
<v Speaker 8>of the labor force. It's ticked up modestly, but it's

0:48:21.480 --> 0:48:25.960
<v Speaker 8>not anything that's terribly concerning, particularly in a historical context.

0:48:26.480 --> 0:48:29.120
<v Speaker 8>You look at, you know, sort of initial claims. Yeah,

0:48:29.120 --> 0:48:31.919
<v Speaker 8>they've moved up somewhat, but again not to the point

0:48:31.960 --> 0:48:35.440
<v Speaker 8>where it's it's ultimately an acute issue, we would say,

0:48:35.560 --> 0:48:37.759
<v Speaker 8>again from a labor perspective. So I think it's something

0:48:37.760 --> 0:48:39.640
<v Speaker 8>that the Fed's clearly watching. And you go back to

0:48:39.719 --> 0:48:42.720
<v Speaker 8>the Jobs report most recently in the revisions that we saw,

0:48:43.320 --> 0:48:45.160
<v Speaker 8>needless to say, they're going to be concerned about it,

0:48:45.200 --> 0:48:47.680
<v Speaker 8>and that was a real headline grabber. But I think

0:48:47.760 --> 0:48:49.680
<v Speaker 8>they've got this dual mandate and they're going to have

0:48:49.719 --> 0:48:52.200
<v Speaker 8>to balance you know, sort of a pick your poison

0:48:52.239 --> 0:48:54.480
<v Speaker 8>scenario here, where they want to support the labor market

0:48:54.480 --> 0:48:56.880
<v Speaker 8>that might be softening somewhat, or do they want to risk,

0:48:57.040 --> 0:49:01.040
<v Speaker 8>you know, inflation ticking back up because they're cutting and

0:49:01.040 --> 0:49:04.880
<v Speaker 8>providing stimulus in an environment where inflation hasn't really been tamed.

0:49:04.880 --> 0:49:06.040
<v Speaker 8>At this point, I think there's still a lot of

0:49:06.120 --> 0:49:08.960
<v Speaker 8>uncertainty around the tariff impact on inflation.

0:49:09.880 --> 0:49:14.000
<v Speaker 5>Yeah, there's certainly a lot of kind of I guess,

0:49:14.080 --> 0:49:19.120
<v Speaker 5>just still lack of clarity on how the tariffs are

0:49:19.680 --> 0:49:23.239
<v Speaker 5>being passed on to companies and being passed on to consumers.

0:49:23.880 --> 0:49:29.360
<v Speaker 5>What's your assessment right now of whether consumers are feeling

0:49:29.480 --> 0:49:32.520
<v Speaker 5>the effects of tariffs or have you seen at least

0:49:32.560 --> 0:49:35.200
<v Speaker 5>in the earnings that the companies are I guess the

0:49:35.239 --> 0:49:38.520
<v Speaker 5>party able to absorb the tariff increases.

0:49:39.520 --> 0:49:39.719
<v Speaker 6>Yeah.

0:49:39.800 --> 0:49:41.880
<v Speaker 8>I think what we've seen so far is that there's

0:49:42.040 --> 0:49:46.480
<v Speaker 8>clearly a lagged effect here that's happening. There's an element

0:49:46.480 --> 0:49:49.640
<v Speaker 8>where companies are able to absorb some of the price increases,

0:49:50.360 --> 0:49:53.080
<v Speaker 8>you know, I think it's yet to be seen the

0:49:53.120 --> 0:49:55.880
<v Speaker 8>full impact, and it's if we're able to kind of

0:49:55.920 --> 0:49:58.040
<v Speaker 8>spread this over a long enough period in terms of

0:49:58.040 --> 0:50:01.200
<v Speaker 8>these incremental pricing increases along the way, then maybe we

0:50:01.239 --> 0:50:04.640
<v Speaker 8>don't see a real uptick in inflation in sort of

0:50:04.680 --> 0:50:07.480
<v Speaker 8>a meaningful acute way, kind of a you know this

0:50:07.880 --> 0:50:11.200
<v Speaker 8>concerning number where CPI spikes, pc spikes, those sorts of things,

0:50:11.200 --> 0:50:14.440
<v Speaker 8>but we just slowly kind of adjust and see, you know,

0:50:14.560 --> 0:50:16.799
<v Speaker 8>this not a step function change again, but just an

0:50:16.800 --> 0:50:19.920
<v Speaker 8>insidious level of sort of inflation building in the system.

0:50:20.239 --> 0:50:22.920
<v Speaker 8>And then, you know, I think part of the argument

0:50:22.960 --> 0:50:25.000
<v Speaker 8>that the Fed's making here too for being a little

0:50:25.040 --> 0:50:28.040
<v Speaker 8>bit more I guess cautious about this whole scenario is

0:50:28.040 --> 0:50:30.200
<v Speaker 8>that it could really just be a one time reset

0:50:30.239 --> 0:50:32.160
<v Speaker 8>that as well, right, and then we start going to

0:50:32.239 --> 0:50:34.360
<v Speaker 8>comps next year on a year over year basis, And

0:50:34.400 --> 0:50:37.800
<v Speaker 8>once we've gotten through this initial wave of the tariff

0:50:38.040 --> 0:50:41.680
<v Speaker 8>adjustments within pricing, you know, then really it's all baked

0:50:41.680 --> 0:50:43.239
<v Speaker 8>into the cake. At that point, we're kind of back

0:50:43.280 --> 0:50:44.960
<v Speaker 8>to where we started in terms of figuring out the

0:50:44.960 --> 0:50:48.360
<v Speaker 8>balance between what's fundamental inflation, what's sort of that underlying

0:50:48.400 --> 0:50:51.359
<v Speaker 8>structural level of inflation, and then what's the labor market doing.

0:50:51.400 --> 0:50:53.800
<v Speaker 8>And then they're balancing their dual mandate and their policy

0:50:53.800 --> 0:50:55.280
<v Speaker 8>settings around those two factors.

0:50:55.480 --> 0:50:57.200
<v Speaker 2>So it sounds like what you're saying, Andrew is you

0:50:57.239 --> 0:51:00.120
<v Speaker 2>don't find the tariffs being inflationary.

0:51:00.600 --> 0:51:03.400
<v Speaker 8>Well, for sure, they will be inflationary to a degree.

0:51:03.440 --> 0:51:05.000
<v Speaker 8>I think it's this idea that we were going to

0:51:05.040 --> 0:51:08.719
<v Speaker 8>see this one time or you know, really acute sense of,

0:51:08.760 --> 0:51:11.840
<v Speaker 8>you know, a three month period where inflation spikes really meaningfully.

0:51:12.080 --> 0:51:14.200
<v Speaker 8>I don't think the evidence is suggesting that that's what

0:51:14.200 --> 0:51:15.799
<v Speaker 8>we're going to see. It's going to be spread out

0:51:15.800 --> 0:51:18.920
<v Speaker 8>over several months, which you know, I guess tells us.

0:51:19.120 --> 0:51:20.719
<v Speaker 8>You know that we just have to be a little

0:51:20.760 --> 0:51:23.120
<v Speaker 8>bit more patient in terms of understanding the full impact

0:51:23.200 --> 0:51:25.320
<v Speaker 8>of these tariff levels, which, mind you, are still changing

0:51:25.440 --> 0:51:27.440
<v Speaker 8>as well. I think that's part of the other issue.

0:51:27.520 --> 0:51:30.280
<v Speaker 2>So so okay, so how should investors and how should

0:51:30.320 --> 0:51:34.520
<v Speaker 2>investors and traders think about that, like in the sense

0:51:34.560 --> 0:51:36.719
<v Speaker 2>of how should they think about them still changing or

0:51:36.960 --> 0:51:40.040
<v Speaker 2>should they think about them being Well, President Trump's favorite

0:51:40.120 --> 0:51:43.239
<v Speaker 2>word in the dictionary is tariff, so they're here at

0:51:43.320 --> 0:51:44.320
<v Speaker 2>least while he's president.

0:51:45.680 --> 0:51:48.600
<v Speaker 8>Yeah, I think we've reverted back to some level now

0:51:48.640 --> 0:51:50.840
<v Speaker 8>of what we can expect going forward in terms of

0:51:50.880 --> 0:51:52.800
<v Speaker 8>you know, we to look at the most extreme version

0:51:52.840 --> 0:51:55.280
<v Speaker 8>that was put forth going back to the March April

0:51:55.680 --> 0:51:59.319
<v Speaker 8>Liberation Day discussions, right, and we've reverted back to something

0:51:59.360 --> 0:52:01.719
<v Speaker 8>that's not nearly as extreme. Is that so if there's

0:52:01.719 --> 0:52:04.360
<v Speaker 8>some band I guess around where we are today, Okay,

0:52:04.520 --> 0:52:07.080
<v Speaker 8>that's reasonable enough. But I think from investors' perspectives, we

0:52:07.120 --> 0:52:08.840
<v Speaker 8>start to zoom out and look at sort of derivative

0:52:08.880 --> 0:52:11.960
<v Speaker 8>effects of everything related to not only tariff policy, but

0:52:12.280 --> 0:52:15.759
<v Speaker 8>broader trade policy, broader America first policy, and for US

0:52:15.840 --> 0:52:19.240
<v Speaker 8>that's still the sort of incremental shift away from dollar

0:52:19.280 --> 0:52:22.279
<v Speaker 8>assets from US markets, looking at things that might be

0:52:22.440 --> 0:52:26.200
<v Speaker 8>cheaper in non US markets, in particular in areas where

0:52:26.239 --> 0:52:29.160
<v Speaker 8>we've potentially got a catalyst as well, So like Europe

0:52:29.200 --> 0:52:32.440
<v Speaker 8>for instance, where now they're loosening the fiscal purse strings,

0:52:32.600 --> 0:52:35.680
<v Speaker 8>they've got consumers that didn't spend down all of their

0:52:35.800 --> 0:52:38.560
<v Speaker 8>COVID stimulus that are still pretty well healed from a

0:52:38.600 --> 0:52:41.600
<v Speaker 8>savings perspective, that could support their economy were they to

0:52:41.640 --> 0:52:43.040
<v Speaker 8>fall on a little bit of a hard time. But

0:52:43.520 --> 0:52:46.000
<v Speaker 8>we just tend to think that there's an interesting catalyst

0:52:46.480 --> 0:52:48.520
<v Speaker 8>in non US markets. And again this idea that the

0:52:48.600 --> 0:52:51.000
<v Speaker 8>dollar may not be kind of the end all be

0:52:51.080 --> 0:52:54.120
<v Speaker 8>all that once was this haven currency for a variety

0:52:54.120 --> 0:52:55.960
<v Speaker 8>of reasons, not least to which is the policies we've

0:52:55.960 --> 0:52:56.480
<v Speaker 8>talked about.

0:52:56.560 --> 0:52:59.960
<v Speaker 2>Andrew Crye Co, Chief investment Officer at Crescent Grove Advisor.

0:53:01.560 --> 0:53:07.000
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