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DOJ Sues Georgia Over Voter Law · Bloomberg Intelligence

• 0:00
  Speaker 1: Welcome to the Bloomberg Markets Podcast. I'm Paul Sweeney, alongside
• 0:04
  Speaker 1: my co host Matt Miller. Every business day, we bring
• 0:06
  Speaker 1: you interviews from CEOs, market pros, and Bloomberg experts, along
• 0:11
  Speaker 1: with essential market moving news. Find the Bloomberg Markets Podcast
• 0:15
  Speaker 1: on Apple Podcasts or wherever you listen to podcasts, and
• 0:18
  Speaker 1: at Bloomberg dot com slash podcast. Well, the Justice Department
• 0:22
  Speaker 1: just today this morning is filing a lawsuit against a
• 0:25
  Speaker 1: sweeping new Republican back voting law in Georgia, saying it
• 0:28
  Speaker 1: represents intentional discrimination against black voters and is unconstitutional. Let's
• 0:34
  Speaker 1: check in with the reporter on that, Storry Chris Strom.
• 0:37
  Speaker 1: He's a national security reporter for Bloomberg News. Chris Big
• 0:41
  Speaker 1: News Today. What do we know right now? So this
• 0:44
  Speaker 1: is the first major action that the Justice Department under
• 0:48
  Speaker 1: under Biden and Merrick Garland taking in regard to voting. Right,
• 0:52
  Speaker 1: There's been a lot of criticism against the Department as
• 0:55
  Speaker 1: Republican controlled state moved the past voting laws that critics
• 1:00
  Speaker 1: they are really restrictive and discriminate, and um, you know,
• 1:04
  Speaker 1: the Department has been facing a lot of pressure and
• 1:06
  Speaker 1: today they came out with their first action, and um,
• 1:10
  Speaker 1: you know it's against the law that uh that Georgia
• 1:13
  Speaker 1: Governor Brian Kemp had signed in March that restricts voting
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  Speaker 1: access in ballot drop boxes and other things. So, Um,
• 1:25
  Speaker 1: one of the things that we all have heard about
• 1:27
  Speaker 1: this um Georgia law is that it makes it illegal
• 1:31
  Speaker 1: to approach a person and give him or her food
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  Speaker 1: and water understanding in line to vote. Is that considered
• 1:40
  Speaker 1: somehow racist in itself or is it more of is
• 1:45
  Speaker 1: it more of secondary issue here? I'm having trouble understanding
• 1:50
  Speaker 1: why you why why the Department of Justice would consider
• 1:52
  Speaker 1: this racist. So the issue that you mentioned there is
• 1:57
  Speaker 1: the secondary issue. So the stuff this is a complaint
• 2:01
  Speaker 1: is really about the the other sections of the voting law.
• 2:05
  Speaker 1: Um that that imposes new voter identification requirements. Um that Um,
• 2:11
  Speaker 1: it's limits. What are the voter What are the voter
• 2:13
  Speaker 1: identification requirements? Do you have to prove who you are? Somehow? Yes?
• 2:17
  Speaker 1: You can no longer use like photo copies of of
• 2:20
  Speaker 1: of documents. You have to original You have to use
• 2:24
  Speaker 1: the original documents. Those could be easily doctored, right, I mean,
• 2:26
  Speaker 1: doesn't it make sense to have to prove your identity. Sure,
• 2:31
  Speaker 1: I mean, you know, the thing is is that you know,
• 2:33
  Speaker 1: as as uh you know, Garland has said voting identification
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  Speaker 1: laws in and of themselves are not um, you know,
• 2:41
  Speaker 1: are not are not bad. The question becomes how they're
• 2:44
  Speaker 1: applied and what the consequences are going to be and
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  Speaker 1: if if they begin to um cause you know, hardships,
• 2:53
  Speaker 1: especially targeted against you know, minorities, then there's the potential
• 3:00
  Speaker 1: for violations of federal law. And that's what the Justice
• 3:03
  Speaker 1: Department is alleging here. Um. You know what what Garland
• 3:07
  Speaker 1: and uh, you know, the d o j Is saying
• 3:10
  Speaker 1: is that this law just goes too far in terms
• 3:14
  Speaker 1: of in terms of what it's, what it is requiring,
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  Speaker 1: and and how it's going to have a negative impact,
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  Speaker 1: especially on minorities. And that's where the kind of you know,
• 3:28
  Speaker 1: rubber meets the road. The the issue of you know,
• 3:31
  Speaker 1: the you know, making making it impossible or making it
• 3:36
  Speaker 1: illegal for people to approach voters with water and food,
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  Speaker 1: you know, that's a much secondary issue. And um and
• 3:43
  Speaker 1: you know critics, you know, i mean, supporters of that
• 3:46
  Speaker 1: restriction say that voters were being harassed in line, and
• 3:49
  Speaker 1: so it's justified to you know, put that kind of
• 3:51
  Speaker 1: restriction out there, all right, Chris. So the Justice Department
• 3:55
  Speaker 1: files here today the lawsuit. What are next steps? Well,
• 4:02
  Speaker 1: the next steps are going to be that there's several
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  Speaker 1: lawsuits that are that have already been filed against this law,
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  Speaker 1: and those will probably most likely to go first into
• 4:12
  Speaker 1: into court um, and the Justice Department will evaluate whether
• 4:17
  Speaker 1: it's going to join in any of those lawsuits, which
• 4:20
  Speaker 1: would be kind of a quicker avenue for the Justice
• 4:23
  Speaker 1: Department to become involved, or if the Justice Department will
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  Speaker 1: sue its own track. Um. Right now, the Justice Department
• 4:29
  Speaker 1: is pursuing its own track, and so you know, they
• 4:31
  Speaker 1: will go into court and begin to you know, make
• 4:33
  Speaker 1: their make their argument. And it's also possible that you know,
• 4:37
  Speaker 1: they reached some kind of a settlement with the with
• 4:41
  Speaker 1: Georgia UM where the you know, the governor agrees to
• 4:47
  Speaker 1: make certain you know changes through you know, executive authority
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  Speaker 1: that then satisfies the Justice Department. So it's a long
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  Speaker 1: way to go before we know how this will play out.
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  Speaker 1: At the same time time, the Justice Department is saying
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  Speaker 1: that they're looking at other laws and other states, and
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  Speaker 1: they said clearly today that this was the first of
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  Speaker 1: many anticipated actions, and so we can probably expect that,
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  Speaker 1: you know, the Department will move against other laws and
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  Speaker 1: other states in the coming months. Chris, I wonder on
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  Speaker 1: a on a broader level, on a federal level, is
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  Speaker 1: there any um move towards taking away all of this, um,
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  Speaker 1: all of these misunderstandings and and putting into place of
• 5:33
  Speaker 1: policy the likes of which we see, for example, here
• 5:35
  Speaker 1: in Germany, when you register to vote, which you're required
• 5:38
  Speaker 1: to do at the age of eighteen, you're issued a
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  Speaker 1: federal identification card and everyone has one, and there's no
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  Speaker 1: you know, question about, um, whether certain groups are held
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  Speaker 1: back for lack of these identification cards. Um, there's I mean,
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  Speaker 1: so you know, in the United States, the voting, the
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  Speaker 1: voting is voting is ran by this by the states,
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  Speaker 1: and there there there is no federal authority that kind
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  Speaker 1: of dictates. There's no you know, I mean, if you
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  Speaker 1: want to say, if there's a federal identification then you
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  Speaker 1: can say it's a driver's license, although you know passport,
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  Speaker 1: passport can be another one. But there you know, there's
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  Speaker 1: there's cutouts where um, you know, people just get state
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  Speaker 1: identification cards rather than like you know, an actual driver's license. Um.
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  Speaker 1: You know, there is talk about passing a federal legislation
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  Speaker 1: then that's been that's been uh, you know, installed in Congress.
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  Speaker 1: It's very divisive right now and it doesn't look like
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  Speaker 1: it's going to have the support to move forward. There
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  Speaker 1: is a push for UM that the Justice Department wants
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  Speaker 1: Congress to pass legislation that would give it the ability
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  Speaker 1: to UM oversee when states make changes to their election laws,
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  Speaker 1: that the Justice Department will kind of have to sign
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  Speaker 1: off on that. But I gotta say, like, you know,
• 6:56
  Speaker 1: are you know, Congress in the United States is very
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  Speaker 1: deadlock right now, and it doesn't seem like any legislation
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  Speaker 1: is canna get through anytime soon. You know, it's clearly
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  Speaker 1: it's very polarized. I was just and you make a
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  Speaker 1: good point that it's a the fact that it's on
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  Speaker 1: a state basis makes it more difficult for a federal
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  Speaker 1: republic uh to do something like that a federal republic
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  Speaker 1: like Germany does. It's just that, um, you know, there's
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  Speaker 1: there's been so much UM strife around this issue in
• 7:22
  Speaker 1: the United States. To me, it would make sense that
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  Speaker 1: you have to identify yourself, but it should also be
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  Speaker 1: you know, everyone should get the same kind of identification.
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  Speaker 1: I guess it's just a little bit more difficult in um,
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  Speaker 1: a United States kind of federal situation, right. And it's
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  Speaker 1: and it's not just the identification cards either, that's an
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  Speaker 1: issue in some of these states, like Georgia. It's also
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  Speaker 1: there's a couple of other factors too. There's also just
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  Speaker 1: access to to uh to to voting uh, you know,
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  Speaker 1: like using ballot drop boxes and and the hours of
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  Speaker 1: which you can vote. And what the o J is
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  Speaker 1: saying with the with the Georgia law is that the
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  Speaker 1: Georgia law live, it's uh ballot drop boxes and specifically
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  Speaker 1: limits them in in minority and minority uh community and
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  Speaker 1: off the limits the ability for people to vote during hours.
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  Speaker 1: All right, Well, it's a fascinating development. Will definitely follow
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  Speaker 1: your reporting, Chris, Thanks so much for joining us. Chris
• 8:19
  Speaker 1: Strom is our national security reporter for Bloomberg News covering
• 8:24
  Speaker 1: the Department of Justice suing Georgia over the new voter law.
• 8:28
  Speaker 1: This is Bloomberg. It is Pride Month and here in
• 8:35
  Speaker 1: New York City, NYC Pride Parade will take place this Sunday.
• 8:41
  Speaker 1: We want to check in with Alison Witherspoon. She's the
• 8:43
  Speaker 1: chief marketing officer fort Nissan. Allison, thanks so much for
• 8:45
  Speaker 1: joining us. I love to get a sense of how
• 8:48
  Speaker 1: you guys at Nissan are you know, kind of aligning
• 8:51
  Speaker 1: yourself or interacting with this community here as we celebrate
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  Speaker 1: Pride Month. Yeah. Absolutely, I think we are very be
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  Speaker 1: supporters of and part of the celebrations for Pride events
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  Speaker 1: around the country, not just for Pride Month in the
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  Speaker 1: month of June, but also throughout the year. Um so
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  Speaker 1: our support continues actually through April with various Pride celebrations
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  Speaker 1: around the country. So for us from a price standpoint
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  Speaker 1: and how we support the l g B t Q
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  Speaker 1: plus community, it actually starts with our own employees and
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  Speaker 1: it starts internally. So we want to make sure we
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  Speaker 1: have a commitment to UH. We're committed to diversity, equity
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  Speaker 1: and inclusion, and we strive to make sure that our
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  Speaker 1: internal policies, our benefit packages are support for employees is
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  Speaker 1: inclusive of everyone. So it starts first internally and then
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  Speaker 1: we get into how do we support externally with the
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  Speaker 1: l g B t Q community. I I don't want
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  Speaker 1: to put it on the spot here, but I wonder
• 9:58
  Speaker 1: about UM, this kind of position at Nissan, just in
• 10:02
  Speaker 1: regards to Japan. UM not famously an inclusive culture. What's
• 10:08
  Speaker 1: the lgbt Q plus situation there? Yeah, Actually I worked
• 10:15
  Speaker 1: in Japan for a couple of years, so I was
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  Speaker 1: there for two thousand seventeen through two thousand nineteen, so
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  Speaker 1: I have direct experience in this. I think. UM. You know,
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  Speaker 1: obviously Asian markets are very different culturally from a support
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  Speaker 1: of LGBTQ communities. Actually, Nissan is a supporter of the
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  Speaker 1: celebration of the Tokyo Rainbow Pride Parade. UM, we also
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  Speaker 1: have a lot of inclusivity policies and program and training
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  Speaker 1: for all of our employees, and that includes in our
• 10:43
  Speaker 1: head in our home market in Japan. Alison, give us
• 10:47
  Speaker 1: a sense, as chief marketing officer for Nissan, how Nissan
• 10:50
  Speaker 1: markets and promotes its products to this community, anything, anything
• 10:54
  Speaker 1: unique that you guys are doing. I think for us
• 10:58
  Speaker 1: at Nissan, it's not just one month. To us, it's
• 11:02
  Speaker 1: not just the month of June. We want to be
• 11:04
  Speaker 1: supporting and engaging with the LGBTQ community throughout the year.
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  Speaker 1: So this is why we have a full schedule of
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  Speaker 1: Pride events which we support. UM. We work with all
• 11:14
  Speaker 1: of our regions around the country to make sure that
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  Speaker 1: we're supporting at a local level, so it's not just
• 11:19
  Speaker 1: in the month of June. This is a year round
• 11:21
  Speaker 1: support that is part of not just our our business strategy,
• 11:24
  Speaker 1: but also our marketing strategy. And I mean, obviously it's
• 11:29
  Speaker 1: just the right thing to do. You want to show
• 11:33
  Speaker 1: you know more than tolerance, acceptance and and love. I
• 11:36
  Speaker 1: don't want to sound corny, but you know that's what
• 11:39
  Speaker 1: makes life worth living, right UM. On the on the
• 11:42
  Speaker 1: business side of things, though, Allison does it, does it
• 11:45
  Speaker 1: pay dividends? I mean, do you see broader acceptance from
• 11:49
  Speaker 1: that community of your products. I think yes, we do.
• 11:53
  Speaker 1: And obviously we know that the LGBTQ community has a
• 11:57
  Speaker 1: very large amount of spending, so I think there's that
• 12:01
  Speaker 1: piece of it, but we also see that when you
• 12:03
  Speaker 1: show up and you show up authentically and not just
• 12:06
  Speaker 1: in the month of June, we have seen very strong
• 12:09
  Speaker 1: acceptance of our brand as well as our products from
• 12:12
  Speaker 1: this community. That's a great message. Authenticity is important and
• 12:17
  Speaker 1: I think consumers definitely recognize that. Alison Witherspoon talking to
• 12:22
  Speaker 1: us as a chief marketing officer at Nissan. Really interesting,
• 12:27
  Speaker 1: UM and cool. We focus obviously on this issue in
• 12:31
  Speaker 1: the month and Pride Month, but certainly should be paying
• 12:36
  Speaker 1: attention to it all year round. So Alison, thank you
• 12:38
  Speaker 1: so much for joining us. Now, let's bring in Andrew
• 12:43
  Speaker 1: chain in right now, chief executive officer at procure a
• 12:47
  Speaker 1: m UM. Procure has the e t F UFO. It's
• 12:53
  Speaker 1: not an e t F for unidentified flying objects, but
• 12:57
  Speaker 1: rather one that it is a pure play investment in
• 13:00
  Speaker 1: UM space and things surrounding space exploration. Andrew, thanks so
• 13:05
  Speaker 1: much for joining us. Uh, what is UM the interest
• 13:10
  Speaker 1: right now in uh? Pure play space e t F
• 13:14
  Speaker 1: as we start to see you know, almost on a
• 13:17
  Speaker 1: feel like a weekly basis, UM elon Musk putting rockets
• 13:20
  Speaker 1: up there, and new satellite technologies coming out that even
• 13:25
  Speaker 1: the average person can afford. You know, the the appetite
• 13:30
  Speaker 1: force based investing is unlike any I've seen UM in
• 13:34
  Speaker 1: my career. And there's been so many transformational technological advancement
• 13:39
  Speaker 1: that have helped allow us to reduce the cost of
• 13:41
  Speaker 1: sending things down into outer space. We're also even seeing
• 13:44
  Speaker 1: it from the military and defense side of government spending,
• 13:48
  Speaker 1: UM really ramping up space efforts as well. So we're
• 13:51
  Speaker 1: at a really unprecedented, unprecedented time for the space industry.
• 13:55
  Speaker 1: And uh, you know, there's a lot of companies that
• 13:57
  Speaker 1: you can get through play exposure to these days. All right, Andrew,
• 14:00
  Speaker 1: So looking at UFO, what are some of the big
• 14:03
  Speaker 1: holdings in UFO? Certainly so we have companies like Virgin
• 14:09
  Speaker 1: Galactic max are we just recently in the most recent
• 14:13
  Speaker 1: UH rebalanced added company m d A to the fund. Um.
• 14:18
  Speaker 1: You also have a lot of satellite operators and providers,
• 14:21
  Speaker 1: launch companies, and even some of your diversified aerospace and
• 14:24
  Speaker 1: defense names that are major players in the space industry,
• 14:27
  Speaker 1: like your Blowings and your Lockey. So, um, if I
• 14:31
  Speaker 1: look at the e t F over the last year,
• 14:36
  Speaker 1: it's just shot up from twenty to h thirty almost
• 14:41
  Speaker 1: thirty two. So you're looking at the game the last
• 14:44
  Speaker 1: twelve months, what's your expectation going out a year or two?
• 14:50
  Speaker 1: You know, I can't really make I'm not allowed to
• 14:52
  Speaker 1: make projections. But what we what we can look at
• 14:54
  Speaker 1: is there's various investment banks and research houses that have
• 14:57
  Speaker 1: all started building focused space analyst team and companies like
• 15:01
  Speaker 1: Morgan Stanley are predicting that the space industry could be
• 15:03
  Speaker 1: over a trillion dollars by Think of America even pointing
• 15:07
  Speaker 1: that the space economy could be roughly two point seven
• 15:10
  Speaker 1: trillion dollars and as of the most recent Space Report,
• 15:15
  Speaker 1: numbers in industry is currently at about four four billion.
• 15:20
  Speaker 1: So um, you know, a lot of a lot of
• 15:21
  Speaker 1: these analysts are pointing to broadband internet and communications really
• 15:27
  Speaker 1: driving that growth over the next several years. Andrew, what
• 15:30
  Speaker 1: we have you? I have to ask you about UFOs.
• 15:34
  Speaker 1: I've generally not been a believer in UFOs, but there's
• 15:38
  Speaker 1: been a lot of military footage, you know, I'm not
• 15:42
  Speaker 1: sure if it's Air Force or Navy pilots, a lot
• 15:45
  Speaker 1: of documentaries lately. Yeah, and I understand there's some Pentagon
• 15:49
  Speaker 1: report out there. Give us what you know about that. Yes,
• 15:54
  Speaker 1: we're we're waiting for the public release. There have been
• 15:57
  Speaker 1: several um, you know, individuals and entities that I've been
• 16:00
  Speaker 1: um given copies of the report already. But this was
• 16:03
  Speaker 1: something that was passed in a coronavirus relief plan that
• 16:07
  Speaker 1: this report would need to come out. And essentially, um,
• 16:10
  Speaker 1: from what we're hearing that's been leaked already. Um, you know,
• 16:13
  Speaker 1: it discusses hundreds of confirmed reports of having identified um,
• 16:19
  Speaker 1: these UFOs or as they're now calling them, U A
• 16:22
  Speaker 1: p s, And we don't know what they are. And
• 16:24
  Speaker 1: so although we might not have an answer saying that, okay,
• 16:27
  Speaker 1: these crafts that we can't identify or understand our foreign
• 16:31
  Speaker 1: adversaries or other worldly Um, it's terrifying from from both
• 16:36
  Speaker 1: your standpoints. One that you know, our adversaries could be
• 16:39
  Speaker 1: a hundred years ahead of us technologically, or on the
• 16:42
  Speaker 1: other end that um, you know, these are other worldly
• 16:45
  Speaker 1: craft that we can't even understand. Oh I see, So
• 16:48
  Speaker 1: you're saying it's possible that rather than aliens, these are
• 16:51
  Speaker 1: earthly foreign adversaries. Yes, because I you know, any logical
• 16:56
  Speaker 1: person who thinks about it rationally has to assume there
• 17:01
  Speaker 1: are many other life forms in the universe, right, I
• 17:04
  Speaker 1: mean it's very large and and it's very unlikely that
• 17:10
  Speaker 1: we happen to be on the leading edge of life intelligence,
• 17:16
  Speaker 1: right Yeah. And it's it's amazing to think that, you know,
• 17:19
  Speaker 1: if there were other countries that were advanced enough to
• 17:22
  Speaker 1: come up with these technologies that defy you our understanding
• 17:25
  Speaker 1: of physics. Um, you know that they've just been sitting
• 17:28
  Speaker 1: on these technologies and not using them for other purposes.
• 17:30
  Speaker 1: So you know, to to think that there could be
• 17:33
  Speaker 1: other technologies that maybe you were you're not far away
• 17:36
  Speaker 1: from being able to understand or potentially harness and thinking
• 17:39
  Speaker 1: about how that could advance. Uh, you know human you
• 17:42
  Speaker 1: know space, Uh, you know desires as well as just
• 17:45
  Speaker 1: you know, what we can learn from potentially others out
• 17:48
  Speaker 1: there that might be a lot smarter than we are.
• 17:50
  Speaker 1: So the fact that our government can't rule that out,
• 17:54
  Speaker 1: I think is, you know, potentially, what could be the
• 17:56
  Speaker 1: big takeaway from this? Yeah, if if, if there's that
• 17:59
  Speaker 1: kind of techno ology coming from other countries on Earth
• 18:02
  Speaker 1: that is slightly terrifying and we don't know about it.
• 18:05
  Speaker 1: But Paul Sweeney, don't you have to assume in you know,
• 18:10
  Speaker 1: a galaxy, that a universe that goes out thirteen billion
• 18:13
  Speaker 1: light years that one of the I don't know how
• 18:16
  Speaker 1: many millions of other planets there are, how many millions
• 18:19
  Speaker 1: of their solar systems there are on on at least
• 18:23
  Speaker 1: one of those, most likely thousands of them, life forms
• 18:26
  Speaker 1: have developed. You know, I'm as big a Star Trek fan.
• 18:30
  Speaker 1: I go way back to the original Star trek Um.
• 18:32
  Speaker 1: So yes is my answer. But you know, it just
• 18:36
  Speaker 1: it just haven't really seen any evidence. But this is
• 18:39
  Speaker 1: this new stuff that we're seeing just recently from some
• 18:41
  Speaker 1: of these military aircraft are are very interesting to be
• 18:44
  Speaker 1: interesting to see what kind of conclusion the Pentagon comes
• 18:47
  Speaker 1: up with. But Andrew, I mean, when you have all
• 18:49
  Speaker 1: this talk about potential UFOs, is that good for the
• 18:52
  Speaker 1: space business? I certainly think so. You know, if you
• 18:57
  Speaker 1: look at it, you know, our ability to learn and
• 19:00
  Speaker 1: whatever these technologies are to you know, advance us, you know,
• 19:03
  Speaker 1: extremely quickly if we're able to figure out, you know,
• 19:06
  Speaker 1: how to reverse engineer some of this. And from your
• 19:09
  Speaker 1: a defense standpoint, um, you've got to think that there's
• 19:12
  Speaker 1: a there's a good chance that we could see more
• 19:14
  Speaker 1: government and military expenditures towards space, whether it's trying to
• 19:18
  Speaker 1: figure out how to create these technologies ourselves, whether it's
• 19:21
  Speaker 1: just tracking, identifying, cataloging, and trying to understand where these
• 19:25
  Speaker 1: crafts that are moving within our own airspace. So this
• 19:28
  Speaker 1: is a national defense issue as well as you know,
• 19:30
  Speaker 1: one that could provide opportunities is the Space Force Andrew,
• 19:34
  Speaker 1: is still a thing. I know you spent a lot
• 19:36
  Speaker 1: of time thinking about. This is still a thing, absolutely,
• 19:39
  Speaker 1: and we're spending going towards space force and that's a
• 19:42
  Speaker 1: growing branch of our military. Sweet is. At first I
• 19:47
  Speaker 1: thought it was just like, what is this? You can't
• 19:50
  Speaker 1: the Air Force just continue doing it? But maybe, uh,
• 19:53
  Speaker 1: maybe they're onto something. When when are we going to
• 19:55
  Speaker 1: see this report? Officially they were it was supposed to
• 19:58
  Speaker 1: be released actually too day, um, and now they're saying
• 20:01
  Speaker 1: that it could be released by the end of the month.
• 20:03
  Speaker 1: So you know, keep keep your eyes killed. This is
• 20:05
  Speaker 1: something that we're we're certainly looking forward to its release.
• 20:08
  Speaker 1: And maybe he added a risk disclosure to the UFO
• 20:11
  Speaker 1: perspectives because of potential U A T and USO risks.
• 20:14
  Speaker 1: All right, well, it's some cool stuff. We'll have you
• 20:17
  Speaker 1: back on Andrew Shannon. He's a chief executive officer for
• 20:20
  Speaker 1: procure a m talking to us about UFOs, the E
• 20:23
  Speaker 1: T F and also actually the real thing, Matt. I
• 20:27
  Speaker 1: mean again, um, big fan of Star Trek. I'll go there,
• 20:31
  Speaker 1: you know, Um, we'll see. But anyway, it's attracting money,
• 20:35
  Speaker 1: so that's important to us. A Bloomberg we'll have more
• 20:37
  Speaker 1: coming up. This is Bloomberg. Now let's get over to
• 20:43
  Speaker 1: Ben's lavin right now, Global head of E T S
• 20:46
  Speaker 1: n Asset Servicing at b n Y Melon, because we've
• 20:50
  Speaker 1: seen um an interesting trend here mutual funds converting into
• 20:57
  Speaker 1: e T s. Ben, Why are we? Why are we
• 20:59
  Speaker 1: seeing this? What's the ben fit to investors? Well, an
• 21:02
  Speaker 1: industry milestone occurred in March with the first ever conversion,
• 21:06
  Speaker 1: and then a few weeks ago we saw dimensional funds
• 21:09
  Speaker 1: convert around thirty billion in mutual fund assets the e
• 21:13
  Speaker 1: T S, which is notable for the scale. But why
• 21:16
  Speaker 1: is this happening? I mean really because investors are demanding
• 21:19
  Speaker 1: it um. The market is preferring investment content delivered in
• 21:23
  Speaker 1: the et F wrapper, and the data shows that mutual
• 21:26
  Speaker 1: fund flows have been persistently negative and E t F
• 21:29
  Speaker 1: flows have been persistently positive over the last several years.
• 21:33
  Speaker 1: And the recent SEC ruling UM and regulatory developments that
• 21:38
  Speaker 1: were adopted last year really set the stage to make
• 21:41
  Speaker 1: this easier or asset managers to convert products and bring
• 21:46
  Speaker 1: some of these strategies to market inside an et F rapper.
• 21:50
  Speaker 1: But some mutual funds can transition easily to the EHF structure,
• 21:54
  Speaker 1: but some are not well suited due to the underlying
• 21:56
  Speaker 1: investment strategies. But this is a trend I expect to
• 21:59
  Speaker 1: continue and it will attract a lot of attention going forward.
• 22:03
  Speaker 1: So Ben, I'm just unclear what is the advantage to
• 22:05
  Speaker 1: the investor for you know, going from the mutual fund
• 22:09
  Speaker 1: structure to et F structure. Well, there are several advantages
• 22:14
  Speaker 1: that e t F s bring UM. One certainly is
• 22:17
  Speaker 1: around tax station and certainly UM the e t F
• 22:22
  Speaker 1: rapper offers in many ways a better mouse trap compared
• 22:25
  Speaker 1: to mutual funds when it comes to managing the underlying
• 22:28
  Speaker 1: taxes UM. So the e t F structure does allow
• 22:33
  Speaker 1: the portfolio managers to to eliminate or avoid distributing capital
• 22:40
  Speaker 1: gains to investors compared to mutual funds. But other features
• 22:45
  Speaker 1: that e t F s have such as daily liquidity,
• 22:49
  Speaker 1: daily transparency UM and certainly lower fees on average in
• 22:54
  Speaker 1: many cases is another big driver behind the trend towards
• 22:58
  Speaker 1: e t F adoption and managers thinking about converting funds
• 23:02
  Speaker 1: into the e t F rapper. What are the drawbacks
• 23:06
  Speaker 1: of an e of an e t F rapper A
• 23:08
  Speaker 1: mutual fund. Well, I think UM, you know, the drawbacks
• 23:12
  Speaker 1: are few, but the process is UM, you know, somewhat complicated. UM.
• 23:18
  Speaker 1: And for investors who have bought their mutual fund shares
• 23:23
  Speaker 1: directly with the company UM, they would need a brokerage
• 23:27
  Speaker 1: account UM, where many mutual fund transfer agencies have not
• 23:32
  Speaker 1: are not able UH to easily UM have an equity
• 23:37
  Speaker 1: security or an equity like security on their platform UM
• 23:41
  Speaker 1: and so that's a big piece of conversion. But but
• 23:44
  Speaker 1: more recently, many investors are buying their mutual funds through
• 23:47
  Speaker 1: brokerage platforms UM and so it's a quite easy conversion UM,
• 23:52
  Speaker 1: you know, if you have those accounts in place. UM.
• 23:55
  Speaker 1: And also many of the fund companies are offering you know,
• 23:58
  Speaker 1: other options for asters who don't want to convert. But
• 24:02
  Speaker 1: generally speaking, in the conversions we've seen, most investors have
• 24:06
  Speaker 1: opted to transition their shares from a mutual fund to
• 24:10
  Speaker 1: an et S. So UM just a good headline come
• 24:14
  Speaker 1: across the bloomber terminal Justice Department to sue Georgia over
• 24:17
  Speaker 1: voting restrictions. That's according to the Washington Post and we'll
• 24:19
  Speaker 1: have more reporting on that up. Shows you where this
• 24:22
  Speaker 1: Justice Department is yeah, exactly, new sheriff in town. I
• 24:26
  Speaker 1: guess Ben Slaven joining us here talk to us about
• 24:30
  Speaker 1: um the record flows we're seen the e t F.
• 24:33
  Speaker 1: It just seems like there's NonStop money coming into the
• 24:36
  Speaker 1: e F et F space. What have you seen so
• 24:37
  Speaker 1: far this year? Well, the e t F industry continues
• 24:41
  Speaker 1: to set records. We saw the global et F flow
• 24:45
  Speaker 1: top over five hundred billion years of date and over
• 24:49
  Speaker 1: a trillion in the trailing twelve month period. UM. So
• 24:52
  Speaker 1: the industry globally sits at nine trillion, which is now
• 24:55
  Speaker 1: around four of all funds. But here in the US
• 24:58
  Speaker 1: we've seen about four hundred and fifty billion in inflow
• 25:02
  Speaker 1: year to date, which would put us on pace to
• 25:04
  Speaker 1: shatter the record that we saw last year. But what's
• 25:08
  Speaker 1: remarkable is the breath. Um It's not just a few
• 25:12
  Speaker 1: products or a few issuers. We are seeing that inflow
• 25:16
  Speaker 1: spread across the industry up and down the lead table,
• 25:20
  Speaker 1: but also across investment type as well, So it's not
• 25:23
  Speaker 1: just equities, it's fixed income and and other multi asset products.
• 25:28
  Speaker 1: The other interesting thing we are seeing here at being
• 25:31
  Speaker 1: why is really the record pace of new fund launches.
• 25:35
  Speaker 1: So with that inflow. UM. You know, issuers are also
• 25:39
  Speaker 1: launching product at a record pace. We've seen over a
• 25:42
  Speaker 1: hundred and fifty new EPs launched this year alone, UM
• 25:47
  Speaker 1: and again after a record year last year. UM, so
• 25:51
  Speaker 1: we expect this trend to continue. UM. Also, trading volume
• 25:56
  Speaker 1: is also up significantly as well with all the new
• 25:58
  Speaker 1: products in the flow, which would just not surprising, Yeah,
• 26:01
  Speaker 1: just extraordinary development and financial services really over the last
• 26:04
  Speaker 1: several years is the growth of e t F. Ben Slaven,
• 26:07
  Speaker 1: Global head of E t F S and Asset Servicing
• 26:10
  Speaker 1: at b n Y Melan giving us the latest on
• 26:14
  Speaker 1: e t F s again, continued record inflos into the
• 26:17
  Speaker 1: e t F space, just amazing. Thanks for listening to
• 26:20
  Speaker 1: the Bloomberg Markets podcast. You can subscribe and listen to
• 26:23
  Speaker 1: interviews with Apple Podcasts or whatever podcast platform you prefer.
• 26:28
  Speaker 1: I'm Matt Miller. I'm on Twitter at Matt Miller three
• 26:32
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• 26:35
  Speaker 1: Before the podcast, you can always catch us worldwide at
• 26:38
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