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Bloomberg's Butler on Blackberry, Gordon on House Sit-In(Audio) · Bloomberg Intelligence

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  Speaker 1: A barrel hired today by two. I'm Charlie Paddle. That's
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  Speaker 1: a Bloomberg business flash. You're listening to taking stock with
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  Speaker 1: pim Box and Kathleen Hayes on Bloomberg Radio taking a
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  Speaker 1: look at a BlackBerry missing its sales estimates today after
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  Speaker 1: is shrinking smartphone sales and an inventory right down overshadowed
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  Speaker 1: a welcome boost in software revenue. Is BlackBerry winning the
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  Speaker 1: battle to raise its brand, raise its size, raise its profile,
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  Speaker 1: or just sort of standing in place of falling behind.
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  Speaker 1: John Butler is here, senior Telecom Services and Equipment analysts
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  Speaker 1: for Bloomberg Intelligence, a unique real time research and UH
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  Speaker 1: a terminal customer with this function b I go, So,
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  Speaker 1: John Butler, you go and tell us about the report,
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  Speaker 1: the pluses the minuses. Market doesn't like it too much. Well,
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  Speaker 1: the market's a little has been a little mixed on BlackBerry.
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  Speaker 1: It's actually upright now as I look at it. But
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  Speaker 1: what they're doing, right, Kathleen, is they're getting through a
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  Speaker 1: transition from being a hardware vendor to a software provider,
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  Speaker 1: and they're doing it under the stewardship of a CEO
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  Speaker 1: who has been there a couple of years, John Chen,
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  Speaker 1: who comes out of the software industry, and what BlackBerry
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  Speaker 1: really does quite well as they offer very good mobile
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  Speaker 1: security software and they have enterprise mobile management software. So
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  Speaker 1: when companies need to manage all these mobile devices in
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  Speaker 1: the field, uh, and they need to control access and
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  Speaker 1: keep that access secure, and that's one thing that BlackBerry
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  Speaker 1: does very well. And Chen has been very focused on
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  Speaker 1: growing that element of the business because it's very high margin.
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  Speaker 1: And as we all know, the handset franchise has really
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  Speaker 1: been suffering. And you know that's I was thinking this
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  Speaker 1: the other day. I can't remember a single handset vendor
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  Speaker 1: that has recovered from this kind of disastrous fall. You know, No,
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  Speaker 1: Kia didn't recover, Motorola didn't recover. Now we're looking at
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  Speaker 1: BlackBerry struggling but not recovering. So you know, I think
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  Speaker 1: Chen looks at the business and sees that and says,
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  Speaker 1: you know, it's a hit driven business. I've come out
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  Speaker 1: with one handset after another and I'm not getting what
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  Speaker 1: I want. So he's looking to software. As you said, John,
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  Speaker 1: the shares of black bearry that up about four percent today,
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  Speaker 1: they are down more than twenty four percent year to date.
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  Speaker 1: John chen saying today that if I shut down the
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  Speaker 1: hardware business, I lose the revenue, probably make the margin
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  Speaker 1: a lot better, but I'm going to lose the connection
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  Speaker 1: with those customers. He's referring to those enterprise and government
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  Speaker 1: clients I guess who want that secure hardware component as
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  Speaker 1: part of a complete solution. Is he really going to
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  Speaker 1: be able to juggle the hardware and the software to
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  Speaker 1: the point where one actually produces revenue that is going
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  Speaker 1: to make the company successful. Well, there are cross selling opportunities.
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  Speaker 1: I have to give him credit were credits due. They've
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  Speaker 1: tried to capitalize on that, and Bloomberg is a great
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  Speaker 1: example where at least in the past, the company has
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  Speaker 1: given Blackberries to the salesforce and other people that are
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  Speaker 1: on the road. And so if you've already got that
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  Speaker 1: customer relationship, why not go into the decision makers and say,
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  Speaker 1: by the way, we offer really great enterprise software to
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  Speaker 1: help manage those people in the field or those devices
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  Speaker 1: in the field. Keep your network nice and secure and
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  Speaker 1: help you U control access to the network and keep
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  Speaker 1: your data safe. And so again, I think having the
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  Speaker 1: devices out there as sort of to lead into a
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  Speaker 1: sale or just the opposite. If you've got a software
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  Speaker 1: account and they're buying handsets for their people, why wouldn't
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  Speaker 1: you want them to be Blackberries? And so again you
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  Speaker 1: have access to those decision makers. So they're complementary businesses
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  Speaker 1: in that sense, and I think that's really what he's
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  Speaker 1: getting at their Can they live without devices? Sure? I
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  Speaker 1: mean I think they're doing well in software. We saw
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  Speaker 1: over growth there with this past quarter, and I expect
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  Speaker 1: that to keep up. So um, I think they're okay
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  Speaker 1: with that. Thank you very much for spending time with us.
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  Speaker 1: John Butler joins us that he's the senior Telecom's analyst
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  Speaker 1: for Bloomberg Intelligence, and of course, Bloomberg Intelligence provides a
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  Speaker 1: all marketing government factors that affect business. Our terminal customers
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  Speaker 1: can access this function by just typing b I go
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  Speaker 1: on the Bloomberg. Now we turn our attention to Washington, Georgia.
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  Speaker 1: Representative John Lewis, the Democrat, declared a victory as he
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  Speaker 1: and other Democrats staged a revolt in the House of
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  Speaker 1: Representatives over gun policy reform, and they suspended their nearly
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  Speaker 1: twenty six hour sit in in the capital. Here to
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  Speaker 1: tell us more is Craig Gordon. He is managing editor
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  Speaker 1: for Bloomberg News in Washington, d C. Craig, thank you
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  Speaker 1: very much for spending time with us. Did the twenty
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  Speaker 1: six hour sit in accomplish anything other than bringing this
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  Speaker 1: to everybody's attention, Well, that is what they were trying
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  Speaker 1: to accomplish, was bringing it to everyone's attention. Um. I
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  Speaker 1: actually do think it's made a bit of an uncomfortable
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  Speaker 1: situation for the House Speaker, Paul Ryan, who for the
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  Speaker 1: past two days has really stood stood his ground and said,
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  Speaker 1: you know, I'm not going to give them. So essentially
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  Speaker 1: they held us it in to try to get a
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  Speaker 1: vote on the gun control other measure that would keep
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  Speaker 1: guns out of the hands on people, the no fly list.
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  Speaker 1: Paul Ryan has said he doesn't think their support for
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  Speaker 1: that constitutional reasons he shouldn't do it, and so for
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  Speaker 1: two days he sort of stood his ground. But meanwhile,
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  Speaker 1: on the other side of the Capitol, the Senate just
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  Speaker 1: did take some votes on some gun control measures from
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  Speaker 1: Susan Collins. Those did also fail. But Ryan right now
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  Speaker 1: is a little bit, a little bit lonely out there.
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  Speaker 1: He's really the guy standing between the U. S. House
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  Speaker 1: representatives and a vote on gun control at a moment
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  Speaker 1: when the polls show the public actually does think maybe
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  Speaker 1: it's time to do something to crack down on the
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  Speaker 1: availability of guns. You know, Craig from the the lofty
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  Speaker 1: position of down here or I should stay up here
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  Speaker 1: from Washington Sea in New York. Uh. And following this,
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  Speaker 1: this uh, the gun control debate and the various votes,
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  Speaker 1: it was to me it looked it looked like there
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  Speaker 1: was the potentially common ground if both sides were would
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  Speaker 1: agree that, you know, you don't want no fly potential
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  Speaker 1: terrorists to have guns. You know, you can lengthen the
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  Speaker 1: amount of time, don't let them by guns at gun shows,
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  Speaker 1: all these things. Is uh, as objectively as you can,
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  Speaker 1: Why have the Republicans, for example, opposed with the Democrats
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  Speaker 1: are proposing because it seems this would have been right
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  Speaker 1: for compromise from the two of them. Sure, I mean, look,
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  Speaker 1: there's sort of the The easy answer would to just
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  Speaker 1: be saying that the National Rifle Association. The n r
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  Speaker 1: A has this you know, iron grip on Republicans, UH,
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  Speaker 1: through donations and through contributions and through their supporters and voters.
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  Speaker 1: I think that's I think that's unfair to all involved. Um,
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  Speaker 1: there's some truth to that. Obviously, it's a very powerful lobby,
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  Speaker 1: and a lot of Republicans listen to the n r A.
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  Speaker 1: But look, these are folks who are I think I
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  Speaker 1: could fairly characterize the Republican position is saying they are
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  Speaker 1: nervous about sort of letting the camel zones under the tent,
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  Speaker 1: where if you banned guns for this group of people,
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  Speaker 1: well then next time you maybe another group, in another group,
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  Speaker 1: in another group, and pretty soon you know that it's
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  Speaker 1: a lot of people. I do think where the Democrats
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  Speaker 1: have a little bit of moral high ground right here
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  Speaker 1: is that this has actually become less a Second Amendment
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  Speaker 1: conversation and more a terrorism conversation. And we've written about
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  Speaker 1: this and some of our stories where it's one thing
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  Speaker 1: to say, you know, the Second Amendment says I've a
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  Speaker 1: right to keep him bear arms. But I think a
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  Speaker 1: lot of Americans, Republicans, Democrats, independents would say yeah, But
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  Speaker 1: I'm not sure I want omar mateam to the guy
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  Speaker 1: who accused, you know, on the Orderlando shooting, to own
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  Speaker 1: a weapon. I do think that has shifted the conversation
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  Speaker 1: just a little bit in Washington, and I think we
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  Speaker 1: saw it in the Senate today. Susan Collins, senator from Maine,
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  Speaker 1: had had a sort of a modified no fly band.
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  Speaker 1: She got about fifty two votes on that. I'm not
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  Speaker 1: sure she would have gotten that pre Orlando. And if
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  Speaker 1: you get fifty two, maybe you can you can build
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  Speaker 1: up from there. So I do think the Republicans believe
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  Speaker 1: there is it is a constitutional right and shrine right
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  Speaker 1: there in the Second Amendment, and they're gonna stand by it.
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  Speaker 1: I think it's getting to be a little bit of
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  Speaker 1: a harder political position for them to stick with Craig
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  Speaker 1: just quickly. I understand that the GOP leadership asked that
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  Speaker 1: the c SPAN cameras that normally broadcast from the House
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  Speaker 1: be turned off, But yet many of the Democrats used
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  Speaker 1: the video streaming at Periscope and they shared that footage
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  Speaker 1: of this sit in and it went viral. It really
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  Speaker 1: was a remarkable moment. Again, whatever your politics are on
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  Speaker 1: the issue of guns, or whatnot. It really was something.
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  Speaker 1: It is true the House representatives, the leadership controls the
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  Speaker 1: cameras for c SPAN. They're sort of there at the
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  Speaker 1: permission of the House and they shut them down. So
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  Speaker 1: these some of these clever members fired up their phone
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  Speaker 1: apps and the head periscope and Facebook live going, and
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  Speaker 1: we're able to get those signals back out to c SPAN.
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  Speaker 1: There's a lot of us, Look, I'm a journalist, so
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  Speaker 1: I'm a First Amendment guy. The more information the better.
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  Speaker 1: A lot of us are conchery on se Spanned that
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  Speaker 1: they were able to get the signal out and around
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  Speaker 1: the objections of the House leaders. So it was a
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  Speaker 1: really a remarkable moment, and it also brought people into
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  Speaker 1: the chamber of the House, whether it really except for
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  Speaker 1: the c SPAN camera, you're not really allowed to film
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  Speaker 1: in a kind of remarkable way. That's incredibly intimate sort
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  Speaker 1: of setting of the Senate of these a House members
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  Speaker 1: talking back and forth. So again, whatever your politics are
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  Speaker 1: on guns, it was a pretty remarkable moment in American democracy,
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  Speaker 1: and it was quite something to be to be covering
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  Speaker 1: Craig ten seconds the bloom Brick Business Week sit down
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  Speaker 1: with President Obama, the anti business president, who's been good
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  Speaker 1: for business? That's the headline. Just quickly, what's the highlight,
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  Speaker 1: what's Look. If you want to know what Barack Obama
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  Speaker 1: thinks about the U. S. Economy and the responsibility of
• 10:49
  Speaker 1: businesses and of the financial sector and Wall Street in it,
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  Speaker 1: read this interview. I think he lays it out in
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  Speaker 1: enormously granular detail. Again, whatever you think of his positions,
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  Speaker 1: agree or disagree, you will know what Barack Obama thinks,
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  Speaker 1: and what he thinks is basically, these business and you
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  Speaker 1: do a little bit more to help raise wages. That
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  Speaker 1: would sum it up. Craig Gordon sums it up so well,
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  Speaker 1: Managing editor, Bloomberg News, Washington, d C. This is taking
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  Speaker 1: stock on Bloomberg Radio.