Latest / Bloomberg Intelligence / New GE CEO Has An Uphill Battle, Needs To Shrink Power

Transcript

New GE CEO Has An Uphill Battle, Needs To Shrink Power · Bloomberg Intelligence

• 0:05
  Speaker 1: Welcome to the Bloomberg p m L Podcast. I'm Pim Fox.
• 0:08
  Speaker 1: Along with my co host Lisa Bramowitz. Each day we
• 0:11
  Speaker 1: bring you the most important, noteworthy, and useful interviews for
• 0:15
  Speaker 1: you and your money, whether you're at the grocery store
• 0:17
  Speaker 1: or the trading floor. Find the Bloomberg p m L
• 0:20
  Speaker 1: Podcast on Apple Podcasts, SoundCloud, and Bloomberg dot com. General
• 0:31
  Speaker 1: Electric shocking up markets today, ousting John Flannery after just
• 0:35
  Speaker 1: a year of his tenure there as chief executive and
• 0:38
  Speaker 1: replacing him with the renowned turnaround experts, shares surging the
• 0:41
  Speaker 1: most in nine years, up more than twelve The question
• 0:45
  Speaker 1: is what is this new CEO going to do and
• 0:48
  Speaker 1: will it be enough to fix a situation that seems
• 0:50
  Speaker 1: to be growing increasingly urgent. Karen, youveil Heart joining us
• 0:53
  Speaker 1: now senior industrials analysts for Bloomberg Intelligence. Karen, thank you
• 0:56
  Speaker 1: so much for being here. It seems like this move
• 0:59
  Speaker 1: is almost one of desperation, saying we need to fix something,
• 1:03
  Speaker 1: and we need to fix something fast. I think it is.
• 1:06
  Speaker 1: I don't think this was a plan. You know, a plan.
• 1:08
  Speaker 1: They put Larry on the board, Larry cop on the board.
• 1:12
  Speaker 1: I think you know as a part partially credibility, partially
• 1:15
  Speaker 1: because he's a great operating guy, and they and they's
• 1:17
  Speaker 1: a new CEO. The new CEO. Yeah, um and uh,
• 1:21
  Speaker 1: I think this was as they just had to get
• 1:24
  Speaker 1: something done quickly. And he's a very good operator. He's
• 1:28
  Speaker 1: a lot of credibility on the street because of his history.
• 1:31
  Speaker 1: And I just felt I just think they gave up
• 1:33
  Speaker 1: on what if you got to if let's say, Larry
• 1:38
  Speaker 1: Cop called Karen you will heart and said, tell me,
• 1:41
  Speaker 1: based on your experience covering GE, what do you think
• 1:47
  Speaker 1: is the most important thing I should focus on right now? Well,
• 1:50
  Speaker 1: clearly it's it's Power. But um, I was a little disturbed.
• 1:54
  Speaker 1: Um that he that Flannery was going to make Power
• 1:58
  Speaker 1: the largest business in GE with an operating margin goal
• 2:01
  Speaker 1: of ten percent. You know that is not a solid plan. Um,
• 2:06
  Speaker 1: and I think, uh, you know, a ten percent operating
• 2:09
  Speaker 1: margin company, you need a much higher you know, that's
• 2:12
  Speaker 1: not going to please shareholders. Um. Larry Culp came in,
• 2:15
  Speaker 1: dannaher was at ten percent, it was but don margin
• 2:18
  Speaker 1: money left. I mean, uh, you know, so I said
• 2:21
  Speaker 1: that is not going to be enough. He's got to
• 2:24
  Speaker 1: shrink Power quickly. Um, I think he's got to sell
• 2:27
  Speaker 1: off pieces of powers and and that's what his iterative process.
• 2:30
  Speaker 1: Dana her business systems does get down to the granular level.
• 2:33
  Speaker 1: And I think he's gonna look at that not as
• 2:35
  Speaker 1: one business, but as many businesses. Try to stop the
• 2:38
  Speaker 1: bleeding as much as he can there. I think he
• 2:40
  Speaker 1: may rethink some of those assets sales like healthcare. Uh,
• 2:44
  Speaker 1: you know, and because that is a good business that
• 2:46
  Speaker 1: they were getting rid of because they needed cash. Um,
• 2:49
  Speaker 1: I think he'll be able to pull cash out of
• 2:52
  Speaker 1: the different businesses. There's a lot of fategy and and uh,
• 2:55
  Speaker 1: Danna her Business Systems help solve some of those problems.
• 2:58
  Speaker 1: So one thing that we were talking about earlier, so
• 3:00
  Speaker 1: that even though you're seeing that rally in GES shares,
• 3:02
  Speaker 1: you're not seeing a commensurate rally in the company's bonds.
• 3:06
  Speaker 1: And they have a lot of them. They have more
• 3:08
  Speaker 1: than a hundred and twelve billion dollars of debt. Uh,
• 3:11
  Speaker 1: you're not seeing the same pop. I'm just wondering a
• 3:14
  Speaker 1: much smaller General Electric, how will they right size their
• 3:18
  Speaker 1: debt portfolio right now? That's massive, h That's that's uh,
• 3:23
  Speaker 1: you know, that's a good question. He's got to generate uh,
• 3:25
  Speaker 1: you know cash to be able to you know, retire it,
• 3:28
  Speaker 1: and that's going to be his number one priority. I think, uh,
• 3:31
  Speaker 1: you take that. His number one priority is going to
• 3:32
  Speaker 1: be dealing with the massive amount of debt while also
• 3:35
  Speaker 1: shrinking the company and making sure that it revives it. Yes,
• 3:38
  Speaker 1: and and the rate I mean, I'm not I'm not,
• 3:40
  Speaker 1: I'm not the credit guy, of course, but but the
• 3:42
  Speaker 1: rating was always vulnerable and now they just took twenty
• 3:45
  Speaker 1: three billion dollars in the good will, you know, wrote
• 3:48
  Speaker 1: down the asset value of the company quite substantially. So
• 3:51
  Speaker 1: that should have some implications too. Although that's a good thing,
• 3:54
  Speaker 1: I think. Is is it a job that Larry Couple
• 3:58
  Speaker 1: find a little easy because he is not a ge veteran.
• 4:02
  Speaker 1: I think the fresh look it will make it easier
• 4:05
  Speaker 1: for him to take, you know, take some you know,
• 4:07
  Speaker 1: bigger actions. One of the negatives against Flannery was, yes,
• 4:10
  Speaker 1: he was a fresh um you know, uh new CEO,
• 4:13
  Speaker 1: but he was ge generated, if you will, And so
• 4:16
  Speaker 1: this gives him a chance. I think the one thing
• 4:19
  Speaker 1: that's most interesting is he was a builder of business,
• 4:23
  Speaker 1: right and now he's got to be a deconstructor of
• 4:26
  Speaker 1: a very large business. So, um, it's gonna be a
• 4:29
  Speaker 1: different kind of challenge. I think one thing I'm struck
• 4:32
  Speaker 1: by is that g E is tasked with the shrinking
• 4:35
  Speaker 1: dramatically and quickly at a time when they're increasing trade
• 4:39
  Speaker 1: tensions between the U S and China. How does that
• 4:41
  Speaker 1: affect the valuations that they're going to be able to
• 4:43
  Speaker 1: realize when they do try to go and sell quickly.
• 4:46
  Speaker 1: That that's a good question, um. I think a lot
• 4:49
  Speaker 1: of their businesses, like the healthcare business for example, a
• 4:52
  Speaker 1: lot of the businesses are producing local you know, they're
• 4:56
  Speaker 1: operating locally. Um. And you haven't really seen multiples come
• 5:00
  Speaker 1: down that much in M and A so um so
• 5:02
  Speaker 1: far with the trade tension. So I don't wouldn't put
• 5:05
  Speaker 1: that on the top of the list of concerns. The
• 5:10
  Speaker 1: potential liabilities that g E still faces because of payouts
• 5:14
  Speaker 1: having to do with pensions and so on. What can
• 5:17
  Speaker 1: you tell us there the long the pension? You know, hey,
• 5:23
  Speaker 1: they're gonna lucky a little bit on the pension because
• 5:25
  Speaker 1: interest rates are going up and and and they already
• 5:27
  Speaker 1: have lowered the pension somewhat as a result of that.
• 5:30
  Speaker 1: In some cash they put in. They're putting six billion
• 5:32
  Speaker 1: dollars into it. That's gonna be less of a problem.
• 5:35
  Speaker 1: I think the concern is what else is in that
• 5:37
  Speaker 1: black hole, like the long term liability that no one expected,
• 5:41
  Speaker 1: right yeah, So I think that's the concern, Like what
• 5:44
  Speaker 1: else is in that ge credit? Um? I think pension.
• 5:48
  Speaker 1: They're chipping away at it, and they're gonna get lucky
• 5:51
  Speaker 1: with were interest rates are going and are expected to
• 5:54
  Speaker 1: go just twenty seconds. I'm just wondering, how does it
• 5:56
  Speaker 1: affect g E that they're going to basically have forced sales?
• 5:59
  Speaker 1: Does that reduce the prices that people will be willing
• 6:01
  Speaker 1: to offer them? I well, you know, so far what
• 6:05
  Speaker 1: they've sold, they actually did a little bit better than
• 6:07
  Speaker 1: expected on almost all of them. Um. It's a hot
• 6:11
  Speaker 1: market for for for M and A. So UM, I
• 6:14
  Speaker 1: don't think they'll they'll do something in desperation. He's a
• 6:18
  Speaker 1: methodical guy. It's going to be interesting because he has
• 6:20
  Speaker 1: to move fast, but he also doesn't want to make,
• 6:23
  Speaker 1: you know, mistakes. It's it's it's not an easy challenge.
• 6:26
  Speaker 1: I mean, right now the pop is you know, everyone's
• 6:29
  Speaker 1: excited about him, but it's gonna be an uphill battle
• 6:32
  Speaker 1: for him to well. Inteed, looking at the shares of
• 6:34
  Speaker 1: General Electric, they are higher right now by more than
• 6:36
  Speaker 1: twelve percent. Our thanks to Karen uble Hart, Senior Analyst
• 6:41
  Speaker 1: for Machinery and All Things ge at Bloomberg Intelligence. Last
• 6:56
  Speaker 1: week was dominated by the Brett Kavanaught hearings, where he
• 7:00
  Speaker 1: addressed some allegations of sexual misconduct when he was in
• 7:03
  Speaker 1: high school. Joining us now Aspreneurs Senior editor of the
• 7:06
  Speaker 1: National View, also a Bloomberg opinion columnist. I am so
• 7:10
  Speaker 1: glad that you're with us for MESH, because you've been
• 7:12
  Speaker 1: supporting Brett Kavanaugh, and we've had people on who have
• 7:16
  Speaker 1: sort of been very critical of his performance last week.
• 7:20
  Speaker 1: What was your impression, not of the allegations of sexual misconduct,
• 7:24
  Speaker 1: but of his actual comportment in front of the Senate
• 7:27
  Speaker 1: Judiciary Committee. I think he acted like somebody who believes
• 7:33
  Speaker 1: he's innocent and is genuinely outraged by the allegations against him,
• 7:39
  Speaker 1: and showed the kind of righteous indignation um that somebody
• 7:44
  Speaker 1: in that situation would expect. The thing is guilty. People
• 7:49
  Speaker 1: also often have the same affect, uh, And we can't
• 7:55
  Speaker 1: really infer something one way or the other from just
• 7:58
  Speaker 1: the way he comported himself well, but but putting aside
• 8:01
  Speaker 1: the sexual allegations altogether, I guess that there's one question.
• 8:06
  Speaker 1: Especially because he brought up, you know, sort of very
• 8:08
  Speaker 1: partisan comments about the Democratic plot against him, and because
• 8:13
  Speaker 1: he was cutting off senators, people are saying that that
• 8:17
  Speaker 1: shows a lack of respective procedure that's sort of important
• 8:20
  Speaker 1: for the judicial system. So I guess I'm wondering what
• 8:23
  Speaker 1: your senses of that. Yes, so people have been saying,
• 8:26
  Speaker 1: you know, he lacks a usual temperament and even saying
• 8:29
  Speaker 1: that he's he disqualified himself for the job just by
• 8:32
  Speaker 1: his behavior, and I think that, Look, he's been on
• 8:35
  Speaker 1: the he's been on an important court for more than
• 8:38
  Speaker 1: a decade now, and the judicial temperament that one is
• 8:42
  Speaker 1: seeking is the is the temperament of a person as
• 8:45
  Speaker 1: a judge, not as a quasi defendant, which is what
• 8:49
  Speaker 1: he is in this instance. You know, Look, judges are
• 8:52
  Speaker 1: asked to recuse themselves when their personal interests are on
• 8:56
  Speaker 1: the line. This is the case where he is being
• 8:59
  Speaker 1: a two very very serious offenses, and I think it
• 9:03
  Speaker 1: would be foolish to expect him to be sort of
• 9:06
  Speaker 1: weighing the charges against him the way a judge would
• 9:11
  Speaker 1: be weighing the charges against somebody else. Do you believe that,
• 9:15
  Speaker 1: if confirmed, Judge Kavanaugh would make a good Justice of
• 9:19
  Speaker 1: the Supreme Court? I do. I think he is extremely
• 9:24
  Speaker 1: well qualified, has been a solid judge on the d
• 9:28
  Speaker 1: C circuit um. You know. I the real question in
• 9:33
  Speaker 1: my mind has been, uh, whether we would get evidence
• 9:38
  Speaker 1: which suggested that he was guilty of some of these
• 9:41
  Speaker 1: very serious offenses that have been charged against him. If
• 9:44
  Speaker 1: that were the case, then I would say he would
• 9:47
  Speaker 1: be disqualified. But hey, I don't think that that evidence
• 9:51
  Speaker 1: has materialized, and be I think absent such evidence, UM,
• 9:56
  Speaker 1: he is an extraordinarily well qualified nominee to Supreme Court.
• 10:00
  Speaker 1: You believe that Merrick Garland would have made a good
• 10:02
  Speaker 1: Justice of the Supreme Court? I do. I think that
• 10:06
  Speaker 1: he would have been at you know, perfectly well qualified
• 10:11
  Speaker 1: nominee um easily um of the same caliber as Stephen
• 10:16
  Speaker 1: Brier and Sonya Soto mayor uh and so forth, and
• 10:20
  Speaker 1: and would have very likely voted with them the vast
• 10:22
  Speaker 1: majority of the time. So given that, do you in
• 10:28
  Speaker 1: any way sort of begrudge the political nature of what
• 10:32
  Speaker 1: these hearings have become because of that situation. I certainly
• 10:38
  Speaker 1: understand many of the passions that Senate Democrats have brought
• 10:44
  Speaker 1: to this, which are not limited to anger over the
• 10:48
  Speaker 1: Garland situation, but also to their genuine belief in many
• 10:53
  Speaker 1: cases in Kavanaugh's guilt of these charges, and their passionate
• 10:57
  Speaker 1: over issues like Roe v. Wade. Um. When it comes
• 11:00
  Speaker 1: to specifically the Garlands situation, I think, look, a Senate
• 11:03
  Speaker 1: Senate Democrats are perfectly within their rights if they wish
• 11:08
  Speaker 1: to not move ahead on the Kavanaugh nomination, if they
• 11:13
  Speaker 1: wish to vote him down, um, if they wish to
• 11:16
  Speaker 1: refuse to meet him the way that Republicans refused to
• 11:20
  Speaker 1: meet even with Merrick Garland. Uh. But of course, you know,
• 11:26
  Speaker 1: if you believe that what the way they're acting with
• 11:29
  Speaker 1: respect of these charges is unjustified, I think it's very
• 11:32
  Speaker 1: different to assassinate a man's character. Um. That didn't happen
• 11:38
  Speaker 1: with Judge Garland, which is a good thing. Uh. And
• 11:41
  Speaker 1: I do believe that there has been some reckless behavior
• 11:45
  Speaker 1: with respect to Judge Kavanaugh. Hold on a second reckless behavior,
• 11:49
  Speaker 1: I want to home in on that, because what exactly
• 11:52
  Speaker 1: are you talking about considering the fact that it seemed
• 11:55
  Speaker 1: like it was only that a Washington Post reporter reached
• 11:58
  Speaker 1: out to Christine Forward, that she came forward with her story,
• 12:01
  Speaker 1: and otherwise there was sort of she asked for for privacy.
• 12:05
  Speaker 1: She didn't want these made public, these allegations. Well, there
• 12:08
  Speaker 1: are a couple of things. First of all, so how
• 12:11
  Speaker 1: did the Washington Post get tipped off in the first place? Two?
• 12:16
  Speaker 1: Reach out? Uh? And you know, if you listen to um,
• 12:21
  Speaker 1: not just the Post, but the Intercept reporter, um it,
• 12:24
  Speaker 1: he's ruled out pretty much everybody but a Democratic congresswoman
• 12:28
  Speaker 1: Anna su. But beyond that, you've got Democratic senators who
• 12:34
  Speaker 1: are saying um and said in advance and okay, let
• 12:38
  Speaker 1: me let me back up a second. I think it
• 12:40
  Speaker 1: would have been I think it was wrong for people
• 12:42
  Speaker 1: to pre judge on either side of this issue. And
• 12:44
  Speaker 1: some Republicans said, before they heard either of them, they
• 12:48
  Speaker 1: were still with Kavanaugh, And some Democratic senators said, before
• 12:51
  Speaker 1: they heard either of them, they believed he was guilty.
• 12:55
  Speaker 1: That's what Senator Blumenthall said, for example. So Senator her
• 12:58
  Speaker 1: own No basically said the higher male sex should shut up, right. Okay,
• 13:03
  Speaker 1: So this is incredibly emotionally charged on all sides, both
• 13:06
  Speaker 1: from a political perspective as well as just an emotional perspective.
• 13:10
  Speaker 1: I'm wondering from from your point of view as a
• 13:13
  Speaker 1: judicial expert, someone who's been following the courts for your lifetime,
• 13:18
  Speaker 1: I'm just wondering how this whole process will affect the
• 13:21
  Speaker 1: credibility of the Supreme Court going forward. Well, it is
• 13:26
  Speaker 1: certainly not the kind of thing that is going to
• 13:29
  Speaker 1: raise public esteem for the courts. And I suspect that
• 13:33
  Speaker 1: there's not a single justice as the Supreme Court from
• 13:35
  Speaker 1: Sonya Soto, mayor on the left, to Clarence Thomas on
• 13:37
  Speaker 1: the right, who looked at the spectacle in the Senate
• 13:41
  Speaker 1: over the last week and said, you know, we really
• 13:43
  Speaker 1: need to bring cameras into our courtroom. Um. But the
• 13:48
  Speaker 1: emotions of the moment do often passed. So there were
• 13:52
  Speaker 1: a lot of emotions on both sides surrounding the Clarence
• 13:55
  Speaker 1: Thomas confirmation. You admittedly those less serious charges at that time,
• 14:03
  Speaker 1: and basically that didn't affect the long run, uh public
• 14:08
  Speaker 1: sentiment towards the court. Um. So we we I think
• 14:12
  Speaker 1: we have to get a little bit of distance from
• 14:14
  Speaker 1: these events before we figure that out. All right, We're
• 14:16
  Speaker 1: gonna leave it there, but thanks very much for being
• 14:18
  Speaker 1: with us. Remesh Panuru is a senior editor at The
• 14:22
  Speaker 1: National Review and a Bloomberg opinion columnist, speaking on the
• 14:27
  Speaker 1: ongoing h I Guess investigation into Brett Kavanaugh and the
• 14:31
  Speaker 1: allegations of sexual assault and the potential for Brett Kavanaugh's
• 14:37
  Speaker 1: nomination to the Supreme Court to go to the full
• 14:41
  Speaker 1: Senate for a vote. We are awaiting comments from President Trump,
• 14:55
  Speaker 1: who will be speaking about the renegotiated NAFTA agreements in
• 14:58
  Speaker 1: the Rose Garden at the White House, which will occur momentarily.
• 15:02
  Speaker 1: In the meantime, I want to bring in Josh Glue.
• 15:04
  Speaker 1: He is White House editor for Bloomberg. Josh, what are
• 15:07
  Speaker 1: we expecting to hear from President Trump right now? Well,
• 15:10
  Speaker 1: we're I think we're expecting to uh hear about what
• 15:14
  Speaker 1: a great achievement this was. You know, he's been putting
• 15:18
  Speaker 1: this up. It's a He's gotten a lot of criticism
• 15:22
  Speaker 1: for his stance on NAFTA, and there were a lot
• 15:26
  Speaker 1: of doubts that anything would come through, and he's going
• 15:27
  Speaker 1: to portray this as a huge victory, even though really
• 15:31
  Speaker 1: money of the revisions they're actually making are quite modest.
• 15:35
  Speaker 1: So it's unclear what this means for him politically, but
• 15:38
  Speaker 1: he's gonna try and make the most of it for sure. Josh.
• 15:43
  Speaker 1: Part of the deal has to do with Canada's dairy
• 15:46
  Speaker 1: market for US farmers. Correct. That's right. That's been a
• 15:49
  Speaker 1: major sticking point the negotiations for uh for some time.
• 15:53
  Speaker 1: And President Trump, on his typical stump piece of stump speeches,
• 15:58
  Speaker 1: will go out and talk about that that uh, you know,
• 16:04
  Speaker 1: American product, American dairy products in Canada more expensive due
• 16:08
  Speaker 1: to tariffs, uh and calling it very unfair. You know,
• 16:13
  Speaker 1: he is. The farmers are really a group that's been
• 16:18
  Speaker 1: you know, stuck in the middle of all this his
• 16:20
  Speaker 1: trade policy. Um, and they've been targeted by China with
• 16:25
  Speaker 1: the retaliatory tariffs, and uh, he really needed to do
• 16:30
  Speaker 1: something here to reach out to people who are really
• 16:32
  Speaker 1: his core constituency. All right, So, Josh, what I would
• 16:35
  Speaker 1: love to hear from you is what the shakeout is
• 16:37
  Speaker 1: From the analysts that have been passing through the details
• 16:40
  Speaker 1: since they were released of this renegotiated agreement. Do people
• 16:44
  Speaker 1: think that it will increase production even at the margins
• 16:47
  Speaker 1: in the US and will increase wages. Do they think
• 16:50
  Speaker 1: that it will shift more production elsewhere? What's the what's
• 16:53
  Speaker 1: sort of the breakdown here? Well, I actually I think
• 16:56
  Speaker 1: the jury is still out on that. We Uh it's
• 17:00
  Speaker 1: a bit early to say, and I think you're it's
• 17:04
  Speaker 1: right now, You're gonna have to tease apart what we're
• 17:07
  Speaker 1: what's uh, what's an analysis and what's more of a
• 17:10
  Speaker 1: political thing, because right now in Washington, the President is
• 17:12
  Speaker 1: going to put as as the heart of political spin
• 17:15
  Speaker 1: on it as he can. Um, these are these are
• 17:18
  Speaker 1: things he's been you know, Democrats have tried to break
• 17:21
  Speaker 1: him over the coals on these and uh, even many
• 17:25
  Speaker 1: people in his own party have been unsupportive of the stance.
• 17:28
  Speaker 1: So uh, it's likely that, as with most or any
• 17:35
  Speaker 1: disruption to a trade agreement, they are gonna be winners
• 17:38
  Speaker 1: and losers. And um, we're gonna have to see how
• 17:42
  Speaker 1: that shakes out. But the analysis that I've seen so
• 17:44
  Speaker 1: far is not that he has achieved some major victory
• 17:48
  Speaker 1: here for the for for U. S. Exporters, Josh. Just
• 17:53
  Speaker 1: to continue the political theme, this pact or treaty would
• 17:58
  Speaker 1: have to be approved by the US Congress. That's right,
• 18:02
  Speaker 1: And um, you know it's unclear the I think most
• 18:07
  Speaker 1: of Congress wanted some kind of deep you know, I
• 18:10
  Speaker 1: don't I don't know if left to Congress that there
• 18:13
  Speaker 1: would have been much of a disruption to so UM,
• 18:18
  Speaker 1: I don't know that there's going to be a huge
• 18:20
  Speaker 1: bar for that to happen. But we'll see you never
• 18:23
  Speaker 1: it's if there's one thing that's unpredictable here, it's which
• 18:26
  Speaker 1: way Congress is going to go on any given issue
• 18:28
  Speaker 1: right now. You know, one question is how much political
• 18:31
  Speaker 1: capital was spent or exhausted during this process. What is
• 18:36
  Speaker 1: the relationship between the US and Canada emerging from this renegotiation.
• 18:41
  Speaker 1: That's a great question, and it's really hard to handicap
• 18:46
  Speaker 1: because yes, there this was a cause for a pretty
• 18:52
  Speaker 1: significant rift between UM, President Trump and Prime Minister Trudeau
• 18:57
  Speaker 1: in Canada and on you usual one, right, this is
• 19:01
  Speaker 1: a longtime ally of the United States neighbor. Uh. You know,
• 19:06
  Speaker 1: there's never really been any major UH issue with Canada,
• 19:11
  Speaker 1: and suddenly it became quite heated and a little bit nasty. UM.
• 19:15
  Speaker 1: If you you know, if you think about this in
• 19:19
  Speaker 1: the larger context of how Trump deals with other leaders
• 19:23
  Speaker 1: in general. UM, you know, on the one hand and
• 19:28
  Speaker 1: and other politicians quite frankly, you know, he when he
• 19:32
  Speaker 1: is in some sort of negotiation, he will go all
• 19:35
  Speaker 1: out insult them, you know, a bare knuckle fight. But
• 19:40
  Speaker 1: then he'll turn around and say like, oh, I love
• 19:43
  Speaker 1: Justin Trudeau or you know he haven't done that yet,
• 19:46
  Speaker 1: but um he does that with uh President She of China.
• 19:51
  Speaker 1: He's done it with political foes where they were at
• 19:55
  Speaker 1: each other's other's throats during a campaign and then afterwards
• 19:58
  Speaker 1: they've amended fences and work together. Know, so, um, he
• 20:02
  Speaker 1: plays it both ways, and it's hard to know how
• 20:04
  Speaker 1: lasting any grudge will be. Well, Josh Galu, thanks very
• 20:09
  Speaker 1: much for being with us. Just I know you're going
• 20:11
  Speaker 1: to be listening to the president's comments. We are awaiting
• 20:15
  Speaker 1: President Donald Trump walking out into the Rose Garden in Washington,
• 20:20
  Speaker 1: d C. Thanks for listening to the Bloomberg P and
• 20:25
  Speaker 1: L podcast. You can subscribe and listen to interviews at
• 20:28
  Speaker 1: Apple Podcasts, SoundCloud, or whatever podcast platform you prefer. I'm
• 20:33
  Speaker 1: Pim Fox. I'm on Twitter at pim Fox. I'm on
• 20:36
  Speaker 1: Twitter at Lisa Abramo. It's one before the podcast. You
• 20:40
  Speaker 1: can always catch us worldwide on Bloomberg Radio.