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EXIM's Hochberg: Shelby EXIM Block Is Jeopardizing Jobs (Audio) · Bloomberg Intelligence

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  Speaker 1: Global business news twenty four hours a day. If Bloomberg
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  Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters.
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  Speaker 1: I'm Katherine Cowdery. Wall Street extended the rally, sending the
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  Speaker 1: climb two hundred eighty five points one point six percent
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  Speaker 1: cents an ounced to thirty and a ten year treasury
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  Speaker 1: down eleven thirty seconds with the yield of one point
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  Speaker 1: five zero percent. And that's a Bloomberg business flash. You're
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  Speaker 1: listening to taking stock with pim Box and Kathleen Hayes
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  Speaker 1: on Bloomberg Radio. An exit x M Bank stalemate delayed
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  Speaker 1: some plane deliveries. That's according to Boeing, a headline that
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  Speaker 1: ran on the Bloomberg yesterday. Uh. In fact, Jackie Collins,
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  Speaker 1: writing in The New York Times, rites earlier in the
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  Speaker 1: week that Tomorrow Thursday is an ignominious anniversary for the
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  Speaker 1: government agency that helps finance foreigners purchases of American exports.
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  Speaker 1: Thanks to a single senator, it's been a full year
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  Speaker 1: that the eighty two year old Export Inport Bank could
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  Speaker 1: approve deals exceeding ten million dollars, a limit that rules
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  Speaker 1: out high dollar deals on airplanes, power generations, heavy equipment,
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  Speaker 1: and New Year actors. No wonder that Boeing has reported
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  Speaker 1: that news. Now, let's introduce a man who is the
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  Speaker 1: head of the x M Bank is here to talk
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  Speaker 1: to us about what's going on and what it means
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  Speaker 1: for exports from the United States. Fred Hawkbird Chairman and
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  Speaker 1: President of the Export Import Bank of the United States,
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  Speaker 1: joining me in studio. Thank you for coming in, Thanks
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  Speaker 1: for having me so. First of all, remind people what
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  Speaker 1: the excellent Bank is. It's not quite a hundred years old,
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  Speaker 1: but it's been around for a while, around for a while.
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  Speaker 1: The Export Inport Bank United States is a trade bank
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  Speaker 1: for the United States. We've had it since nineteen two.
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  Speaker 1: FDR started it. And the understanding that to create more jobs,
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  Speaker 1: we need to do more exporting and their risks and
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  Speaker 1: both real and imagine from exporting. So the x and
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  Speaker 1: Bank was created to support US jobs and we sell
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  Speaker 1: goods overseas, level the playing field with foreign competitors, and
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  Speaker 1: phill the market gaps and emerging economies places like that. Now,
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  Speaker 1: I think over the years, people who think the exce
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  Speaker 1: and Bank isn't worth it isn't needed. Maybe I should
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  Speaker 1: say is that this is a globalized world. Small even
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  Speaker 1: small and medium businesses are exporting much more than they
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  Speaker 1: used to, not just the big ones. But as you
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  Speaker 1: get ready to release your Competitiveness Reports Summary for twenty fifteen,
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  Speaker 1: you have some some factoids that I think paint a
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  Speaker 1: somewhat different picture. You say, for example, that export credit
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  Speaker 1: agencies are much more important now and finding financing exports
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  Speaker 1: for large pro projects in emerging markets, and that foreign
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  Speaker 1: e c a s are getting a lot more aggressive
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  Speaker 1: on behalf of their exporters. And I guess that's your
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  Speaker 1: argument for the U S and two. Well, right now,
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  Speaker 1: you know, when we look at global growth, global growth
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  Speaker 1: is slowing. One of the key drivers of growth around
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  Speaker 1: the world, not just in the United States, but his exports.
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  Speaker 1: You see monetary policy as somewhat run its course. It's
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  Speaker 1: hard to do fiscal stimulus, not just in the US
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  Speaker 1: but elsewhere. So more and more countries are turning to
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  Speaker 1: exports to drive their economy and drive job growth, and
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  Speaker 1: hence it's far more competitive and much tougher and much
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  Speaker 1: more competitive environment for US companies competing. There eight five
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  Speaker 1: export credit agencies in sixty seven countries around the world,
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  Speaker 1: and yet in last year more than sevent of medium
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  Speaker 1: and long term export credit support fell outside the o
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  Speaker 1: e c D arrangement. Sure, let me brief with the
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  Speaker 1: o e c D. The Organization for Economic Corporation Development
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  Speaker 1: sets the rules of the road. It's a transparent system
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  Speaker 1: that says if a government follows those rules. It is
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  Speaker 1: allowed under the w t O, the World Trade Organization,
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  Speaker 1: and for many years that governed how governments supported their exporters.
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  Speaker 1: But with the rise of China and the rise of
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  Speaker 1: some other Asian countries, but particularly China, UM they fall
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  Speaker 1: outside of the rules and that makes it much more
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  Speaker 1: competitive for U S companies try and compete so we
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  Speaker 1: get our fair share. China, as you point out, responsible
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  Speaker 1: for ten times more export financing than the US, up
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  Speaker 1: from eight times last year. And of course, you know
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  Speaker 1: China has taken advantage of so many aspects of world trade,
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  Speaker 1: and trade with the US helped hollow out our manufacturing.
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  Speaker 1: You know. Uh so, I guess that would be another
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  Speaker 1: reason why you say that we've got to step up
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  Speaker 1: and do sending and you need more support. Well, you know,
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  Speaker 1: a little over a dozen of years years ago, Kathleen,
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  Speaker 1: we were the largest single export in the entire world.
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  Speaker 1: We are number two today, number two to China. I
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  Speaker 1: believe there's no reason looking in American innovation and products
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  Speaker 1: and quality, we can't be number one again. But companies
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  Speaker 1: need the tools. XM Bank is one of those tools.
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  Speaker 1: We can't rely on trade sanctions alone to drive our economy.
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  Speaker 1: So why does the U. S. Senator richarch shall Bey,
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  Speaker 1: Republican from Alabama, once a bank supporter UH, block the
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  Speaker 1: renewal of the regulations the go ahead that you need
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  Speaker 1: to move ahead, and it's been almost a year that
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  Speaker 1: you've had to pull back. Well, probably should ask Chairman
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  Speaker 1: Shelby that directly. I would say that let's remember, two
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  Speaker 1: thirds of the Senate voted for XM bank h A
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  Speaker 1: overwhelming of the House, including a majority of all the
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  Speaker 1: Republicans of the House, voted for it. So it is
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  Speaker 1: quizzical why Senator Shelby has not had a hearing so
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  Speaker 1: that we can evaluate the nominated the board. And let
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  Speaker 1: me just add the nominee was recommended to President Obama
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  Speaker 1: by Mitch McConnell, the Republican leader, and it's a Republican
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  Speaker 1: seat on our board. Do you cost us taxpyer money?
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  Speaker 1: We actually make money. Last year we sent four hundred
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  Speaker 1: thirty million dollars to the taxpayers, UH, and since President
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  Speaker 1: Obama was elected, it's north of two billion dollars we
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  Speaker 1: have sent to the taxpayers. Essentially, that's the profit we
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  Speaker 1: make and that even the Wall Streetjournal refers to appress
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  Speaker 1: the profit we make. That we send to the Treasury.
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  Speaker 1: So what is your message to Senator Shelby, What is
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  Speaker 1: your message to the American people? Who I don't know
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  Speaker 1: what what American people can do about this, except maybe
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  Speaker 1: the the citizens of Richard Shelby stayed in voting amount
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  Speaker 1: of office. He's a very powerful senator. That doesn't look
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  Speaker 1: likely to happen anytime soon. Well, the key thing is
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  Speaker 1: we're talking about us jobs and last year we supported
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  Speaker 1: a hundred nine thousand jobs. That numbers down this year
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  Speaker 1: less that we're doing less than half the business of
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  Speaker 1: a year ago. Uh um. President Obama recently met with
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  Speaker 1: Prime Minister Moti. We're looking at a nuclear power facility
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  Speaker 1: for India. Without the X and Bank, that project will
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  Speaker 1: not go forward and those jobs will go elsewhere, not
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  Speaker 1: to the land state. So we're talking about real jobs
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  Speaker 1: in small communities around this country that are in jeopardy.
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  Speaker 1: So many of them have to do with manufacturing, a
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  Speaker 1: very beaten up sector, but one that has been coming back.
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  Speaker 1: Wilfred Hawkberg, we hope to have you back. We're gonna
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  Speaker 1: follow us very closely. It's a fascinating story. Chairman and
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  Speaker 1: President of the Export Import Bank of the United states
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  Speaker 1: they were competitive. Survey out tomorrow. I'm Kathleen Hayes. Thanks
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  Speaker 1: for joining us today on taking Stock. This is Bloomberg Radio.
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  Speaker 1: Coming up, Bloomberg Law, a look at the pressing legal
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  Speaker 1: issues of the day how they affect businesses, consumers, and
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