Surveillance: Infrastructure Plan With Deese

point to five. You can really take your point there, John, about the world will be attention here because this is a sea change in terms of stimulus, and then as we see on infrastructure. What I like about this John, and particularly our next guest, is he is definitive as the experienced deputy. I don't know anyone John of this vintage who as deputy or special assistant has such an interesting cross section of experience ends in the executive process

in Washington. That man is Brian da City joins us right now, the White House Director of the National Economic Council, Brian Good to catch up again. Let's just start right here. Big plan, a lot of detail we need to work through. I want to start with a simple one. Help me understand how you'll measure success beyond just big terms like closing the gap, closing the keg. How will you measure success specifically in the years to come. Well, look, it's

good to be with you, guys. We have a major infrastructure problem in the United States were globally when it comes to our physical infrastructure, our roads are in bad need of a pair. The typical person pays a thousand dollars in extra cost in wasted time and fuel. And if you think about modern infrastructure like broadband, one in three households in rural areas of the country can't even access high speed internet. This is all holding our economy back.

So as we think about coming out of this crisis and rebuilding and building back better, as the President said, we need to train our focus on a big, bold, but also practical in smen in America, and that's what

the President is going to talk about today. The American Jobs Plan is a historic capital investment in America, and our metric of success will be can we make a generational investment improve these things that matter to people's lives, uh, the the way they commute, the way they interact with their loved ones, the way they work and do so in a way that actually creates millions of jobs in

the process. So that's the goal. That's the that's where the President will be talking about today, and that's where we'll be kicking off the legislative process. This, of course is public sector investment. We need to talk about private sector investment as well. And many people will be asking Brian how writing the corporate tax right as we come out of a crisis actually helps develop private investment in America. Well, look, you talk about private investment, and I do want to

just make an important point. These public investments are among the highest return investments in terms of spurring private investments. So we know public investments in airports return several dollars in private investments. Public investments in basic R and D provide the backbone for innovation off what private investment flows. So we know these are the kinds of high value investments that can spur the kind of private investment we need.

We also think it's a reasonable thing to look at how to cover the cost of that capital investment over the long term. That's where the President's proposal comes in, corporate tax reform. Let's end the race to the bottom internationally. Let's have a competitive tax system that encourages domestic investment and do so in a way that over fifteen years, would raise sufficient revenue to cover this plan. Ryandece, you will be in Pittsburgh, that is in the vicinity of

Connor Lambs sevente Congressional district. You need Connor Lamb's vote to get this done. How are you going to amend adjust establish the Texas to pay for this so that Mr Lamb can be reelected. Look in districts like that and all around the country, people see and feel why we need this investment. Bridges are crumbling, schools are crumbling. There are four thousand schools, including in that district, where kids are drinking water from lead. Okay, but how are

you going to do the Texes? Brian, tell me how Connor lama is going to vote for this given the tax hesitancy from sea to shining Sea. Here's what I would say. You look at the seventeen tax cut that passed without a single Democratic vote. It was bad tax policy. It's encouraged more profits and production to actually move overseas, and it's deeply unpopular. What we're saying is we can do better than that. We can create a competitive tax code. We can raise revenue, and we can invest in things

that really matter to the American people. And so that's the that's the basics of this. The corporate tax reforms that we're talking about here would still leave the corporate rate lower than any year since World War Two, other than the last couple of years in the wake of

the Trump tax cut. So we're talking about a year is reasonable and practical, and the investments would really change the game for families in places like western Pennsylvania r And there's a radical economic sea change under what you're talking about. This idea that in the past there a popular belief that the private sector was way more efficient than the public sector. It was the way to generate growth. This proposal questions that, basically saying it needs to come

from the government. Yes, it's infrastructure, but it's a lot of other programs as well. What evidence are you pointing to that public investing can be perhaps as efficient or more efficient in generating growth and pushing this economy ahead. Look at the end of the day, the private investment

and what is what drives the economy forward. But at core, if we look back to great periods where America has done great things, whether it's the building of the interstate highway system or the space race in the nineteen sixties. Well designed public investment can spur innovation at could spur productivity, and it could spur job growth all around in America. We know that's true in things like basic research. We

know it's true in things like physical infrastructure. And the issue is that for forty years we have undermined those basic drivers of economic growth. So this isn't about the public versa private sector. This is about public sector investments that we know will actually generate job growth, we know will help spur innovation across the economy, and we have

done before as a country. This is not new. It's just that we haven't done it in quite some time, and we need to do it at historic scale, something we haven't discussed. I found this morning bron is staying local tax deductions. Can we sit on that just for a moment. There are three House Democrats basically saying we say no sell, no deal. What's your message for them this morning? Look, the President is gonna put out his

plan today. He's going to talk about why we need these investments, and he can talk about some of his ideas on how to pay for it. He is eager and we are eager now to hear from everyone about their ideas. There's a lot of people who are going to have ideas about how to structure those investments, people who are gonna have ideas about how to pay for this. Some people may argue that we don't need to pay for portions of this. That's the conversation that we need

to move forward here. What the President is going to be clear is that he wants input from Republicans and Democrats alife. We want to find practical ways to move this forward, but these are investments that we cannot afford not to make. That's the message you're here from the president and you want to stand from the Republican side. They don't feel like you want their input whatsoever. They were invited to the White House for the last one point nine trily in dollar bill. They didn't feel like

they would listen to. Are you just saying that or do you actually hear something from the Republican side you'd like to include and if so, what is it. This issue of infrastructure having creates a unique opportunity for us to do work together and find common ground solutions. This is an issue that four years you all know you've been covering it. Democrats and Republicans, the business community, the labor community have all been saying, can't we come together

and do something big on America's infrastructure. This has been happening for years. We've been saying this, but we haven't actually done it. We believe this is a unique opportunity. This is a moment and we are absolutely committed to the idea that we want to bring people together here their ideas and find a way forward. Brian, I want you to speak to the nation now, and frankly, Brian, I'm worried about those loudsy bridges on Roots seven up by Middlebury in Vermont, But Brian, I want you to

speak about this. How far behind we are in internet and fast internet for our children learning across America. Is this bill today gonna solve that problem? Look, this crisis has exposed just how vulnerable we are as a country to the fact that we don't have the basic infrastructure backbone of the twenty century. We don't have high speed,

reliable internet for everyone. You know, there are kids around the country who are sitting in McDonald's parking lots can get all mine to try to What are we going to do about in this bill today? It's gonna fix the McDonald's parking lot to take my kid to Starbucks reality we see in the island of Manhattan. Absolutely, this bill is going to commit a hundred billion dollars to get the goal of a pent access to affordable broadband

in this decade. It'll do it by building out the physical the physical elements we need, particularly in rural and remote areas. And it will do it by providing carrots and sticks to carriers to make sure that there are affordable plans available in every part of the country. We can do this in this decade. We need a one time investment of public capital, which will spur enormous amounts of private capital and is also the right thing to do so that our kids, and our families and our

businesses can actually get into the twenty one century economy. Brian, this two point to five trillion dollar plan is thought of as a wish list as much as it is an outline for Biden's plans. How negotiable is this at this point? Where can we see it going in terms of the main non negotiable points. Well, I think if

you go through this plan. Every element of it reflects serious and thoughtful work that has been done over the course of years to identify where our gaps in our infrastructure exist and how we could actually invest to solve them, like the issue of broadband we were just talking about. So what we're gonna do is we're gonna sit down and ask people where do they see opportunity here and

where can we move move the ball forward. But what the President is going to be uncompromising about is to say, this is a moment where we need to make a big capital investment in the country. Everybody recognizes that that's the case. The question is can we actually get it done. That's what the President is going to be saying, Brian,

let's finish on this two point to five trillion. And in the White House statement the great challenges of our time, the climate crisis and the ambitions of an autocratic China. I found the last line there just absolutely fascinating. The ambitions of an autocratic China. Can you span out specifically to us how the challenge is posed by the Chinese Communist Party have shaped this bill in front of us,

this plan. Well, one of the things the President is going to talk about today is that this moment is bigger. You've mentioned earlier that the world is watching that this is a moment where the question is can democracy succeed in delivering for for their people? And that's a question that a lot of people are asking all around the world. So part of what we're trying to do, your part with the President is trying to do here is to

make clear what the stakes are. We are falling behind in R and D, We're falling behind an investment in supply chains and critical industries. But this is a moment where we can show that American actually invest domestically in our own domestic strength in a way that will provide benefits to the world. We've already seen it with the Rescue Plan. We passed the Rescue Plan. We've seen increases in our own growth rate, but also spillovers in terms

of demand for the world. That is the essential role that the American economy can play and American democracy can play in the world. We just have to show that we're up to the task. Great to catch up with you. Let's talk again soon, specifically on China. We'd love to continue that conversation. BRYANTSA the white House, National Economic Council

Director opening day used to be April ten. I don't know when it was Cincinnati, but I tell you, Lisa, it will be great to see all of sports get back in some way or form, as we see with the n C Double A right now. Yeah, My plans have definitely have been charted out to try to get everyone back, and not just for vaccinations. Where I know that city Field, for example in New York City has been in Yankee Citium for that matter, have been outfitted

as inoculation stations. There is a question of how baseball, of how some of the other sports will look different in a post pandemic era, Tom or a almost post pandemic era, almost pandemic era. That is something we will address down. Lisa, Bramwots and Tom Kenyan. We welcome all of you, particularly Bloomberg eleven three oh in New York and I must say up on Boston are Bloomberg affiliate up in Boston as well joining us now. Derek Jeter

of the Miami Marlins are chief executive officer. He launching himself into the stands a few years ago, the one Yankee that red Sox fans due respect and also with us. Anthony Shea with Loane Depot, the executive of the Marlins, and the gentleman from Loan Depot, celebrate their announcement that Loan Deepot will sponsor the stadium and will be very visible for the Miami Marlins in this season. Anthony say, from Sea to Shining Sea, you do loans for America,

you do financing for America. What is your advantage to brand with Derek Jeter and the Miami Marlins. Well, good morning, Uh, it is such an exciting day as I'm sitting here at the new Loan People Park. I think our partnership between two organizations, particularly with Derek, is just a natural fit. We're just so enthusiastic about partnering up with Derek and the Marlins organization and that we just couldn't do more

through Derek. It is the Miami Marlins, which you've worked four in five years on to improve and to really recast the franchise like you knew in New York. Where are you on the path right now? Well, look, you know, we we've made a lot of progress I think in the three and a half years that we've been here,

but we still have a long way to go. You'll you'll always hear me say we have a long way to go, regardless of what happens during the course of the season, but we're taking some positive strides forward, you know, both on the baseball operations side and the business operation side, and day like today is is extremely important to our our organization and we could be happier with the partnership

that we have with Anthony and little people. You start with the Citrus Series with Tampa, but then you've got to get on the road and all the rest of the grind of Major League Baseball. Derek Jeter, you were affected by COVID last year and frankly into this year. What precautions? What did you learn from that process that you can bring forward? Is this nation heels? Yeah, I'll tell you what you know, I said it at the time. Affected. I don't even know if that's the right word to use.

I mean, we had, you know, eight team players as positive in the in the span of a week. And you know what I think we learned through it to the course of that ordeal was but you can't take anything for granted. I think there was a false sense of security with our players because we were in somewhat of a bubble, and it just takes one one case that can can end up spreading throughout an entire team. And and uh, you know, the health and safety of you know, our players are coaches, our staff are fans

is extremely important to us. And uh, you know, you learn from past mistakes and you move on. So we're happy that. Uh, you know, I think baseball is an industry up until this point has has uh stayed pretty clear of COVID up into this point. What do you think it's harder, Derek being part of a team that won five World Series or running a baseball franchise as the owner. That's a good question. I don't even know how to answer that. They're both pretty difficult. I think

you know, you mentioned it. When you're on a team, you're on a field and you have one goal and that's to win a championship each and every year, and nothing changes. It's the same thing here. I think the difference probably is, you know, you're when you when you're playing, it's that particular game, that particular day, and on the business side, you're looking three, four, five years down the road.

So I think there's a lot of similarities. But at the same time, you gotta have a little bit more patients, alright, So more patients three or four or five years down the low down the road. At a time when baseball franchises across the nation have been really affected by the COVID pandemic just because of the revenues that have not come in, how will that affect the five year plan as you see it right now? I don't think it

necessarily changes as much. I mean, you know, you look at partnerships like the one we have right now with with Anthony and Loan Depot. You know, you still have to look at the the overall plan, and we're not gonna change. You know, we said when we got here what we're gonna do, wanted to build sustainable success and that's on the field, it's off the field, and it's

partnerships like this that help us out. And you know, on the field, I think we've done a pretty good job of building an organization that you know, we can be proud of. And it really made some strikes there with the minor league sistem system, which is the foundation of our success. So in that sense, you know, look, everyone was affected, every industry was affected, and uh, you know, moving forward, you just kinda have to bounce back from it.

Derek Jeter with us on Bloomberg Radio. We're thrilled to let you know that the Miami Marlins Chief executive Officer, Derek Jeter is with us with anthonyche they celebrate Loan Depot's naming rights to the Miami Marlins franchise. Uh. To Anthony, I want to link this first to you, Anthony, and then to Mr Jeter, and that is the idea of the spirit of Miami is personified by Mr Jeter. Anthony.

I don't know if you know this, but Jeter launched himself into the stands and a follow ball seven and a half games ahead of the Red Sox a million years ago. What's the spirit Anthony that Loan Depot season all of Florida in this building boom. Well, we as America's lender. Uh, you certainly have become part of supporting America's housing. Florida is a critically important state for not only America, but certainly for Loan Depot. Is one of

our top customer base. In addition to the fact that, uh, you know, Florida is a great great yachting capital of the world which we personally and I personally enjoy and having the opportunity to pair up with winners here is just agree opportunity for us, Derek, to the kids today play like you. I mean, I know it's like in the ESPN question and I'm supposed to say that and all that, but come on, Derek, you know I see the nation and trying to get baseball front and center

to the kids today. Would they go into the stands on a late night twelfth inning? Well, first of all, I want to say, I don't appreciate you saying that was a million years ago. It wasn't that long ago like that, but uh, you know, look, it's it's the game changes. It changes from every generation. I remember when you know, I was younger, and and you know, one great thing is you have access to a lot of the ex players and they come in and tell you

how much the game change. So the game has changed, but the game is exciting with a lot of exciting young players that are in our organization and other organizations. So I I I kinda find it kind of hard to try to compare generations, but you know, there's a lot of exciting players to watch out there. So the

players are exciting. Derek, there is a question of whether we can shorten the games and whether or not perhaps some of the breaks for commercials, for other things, some of the waiting and that people are perhaps don't have the attention span for should be eliminated. Do you support that shortening the games? Taking measures? And what measures do you think we should take? Well, I don't know if you'd necessarily say shorten the games. I just say increasing

the action within the game. Look, I mean the games are what three hours? Three and a half hours, So yeah, there there are ways that you can shorten the games to some extent. But I think it's just increasing the action and get an opportunity to see how athletic baseball players are. And so I think there are some some minor rules changes tweaks that you'd be able to accomplish that. Derek, I blame Nomar Garcia part. He played with the team up to the northeast from where you were playing. He

gets out of the box. Every kid in America is doing this with their hands, stretching out the beat. Do we need a clock in baseball? I don't know if you necessarily need a clock, you know what I mean? They're I think they're you know, they're they're discussing some pitch box and and but you know, one of the great things about baseball is you know the game ever know how long it's gonna be out there. It's a family sport. You bring your entire family out and uh

be able to enjoy three hours with your family. But Derek, you know the problem here, and I understand the naming rights. You were struggling and you need to get a refight through loan Depot and Anthony sheay, but then you rented your house to Tom Brady. How is Tom Brady as a tenant? I mean, should you have gone to loan Depot or did it work out with Mr Brady as tenant? You know what, it worked out actually, and I think I deserve I deserve a Super Bowl ring for for

him renting my house. So there's a lot of championships in that house. Yeah, Anthony, but Anthony, this is so important. I mean, you know we've talked to Derek, and Derek gets the FaceTime. Anthony. What you guys are efforting every day at loan Depot and with your other efforts, you sold the trade in that over the years. I why you would explain now the advantage of the financing of loan Depot that has brought you to these naming rights

with Mr Jeter. Well, that isn't that a softball pitch? Right? Um? You know, we we are contemporary financial services company that is built a lot of digital tools that help many of our customers that are buying a home or refinancing right there to do it very very fast and very easy. Dot com will take care of you. Last word, do you, Anthony, do you see a boom economy out there day to day in the grind of loan depot? Do you witness

the boom economy? This show is predicting Yes, Uh, you know, currently we are breaking records at our at our company, interest rates are very very attractive. Although they're you know, higher than they were three or four months ago, they're still his historically very low. The housing boom is we're in the middle of a now there's a very low inventory. I think as we go through COVID, many of us

are realizing home is uh, home is everything. It's becoming where we where we learned, when we go to school, when we work out, So home I was lying, it's not the last question Derek very quickly, do you, Derek Jeter, how do we fix Red Sox pitching? Hey, we have our own things that we're dealing with down here. I'll let you guys deal with that one. Guys are right, Derek Eater, Thank you so much for being whether Mr Shay, Congratulations on your naming rights with the Miami Marls. Many

important conversations today, but none more important. Here is Francine Liquoix in London with Christine Leguard of the e c B. I'm like, since the e CBS last policy meeting, many hero area countries have extended or even tightened lockdowns. Vaccinations are only making small progress. Is there a point when ever longer restrictions will actually harm in your area's ability

to recover because businesses will just give up. I would observe that we have an economic situation overall, which in this part of the world Europe is really marked by uncertainty, and in that general macro economic situation that is marked by uncertainty. What monetary policy has to do, and what the e c B has to do is to provide as much certainty as possible. And this is really the aim of the most recent monetary policy decisions we have taken clearly in in the in the scope of our mandate,

which is price stability. But I think that in the very exceptional circumstances that we are encountering, providing a degree of certainty is the best that we can do at the moment, given the lockdowns and what's going on with vaccines in Europe. And then got has the balance of risk actually shifted since the last policy meeting? Well, our balance of risk is still tilted to the downside in the short term because we are seeing a degree of uncertainty.

We are seeing renewed lockdowns, We are seeing a vaccination rollerut that is short of what we had expected, but it is much more balanced in the medium in the media term, and we expect the vaccination rollout to proceed. We expect sufficient herd immunity to be reached at the point in time in the future, and that leads us to have rebalanced a bit our assessment of risks in the medium term. So still downward in the short term and more balanced in the medium term. Mario Drugging never

got to high crates. Can you imagine being in the same position. We shall see. Future will tell as the song would go, I would certainly hope that the economy is going to pick up, that there will be a turnaround in in the in the months to come, and that we will be able to resume our sort of less exceptional monetary policy going forward. But I'm not I'm not seeing any kind of raise in the in the near future for sure. But then again, what are markets

exactly playing out at the moment. They seem to be continuing testing central banks, like how steep of a yield curve is. Okay, they can test us as much as they want. We have a mandate, we have an aim. We're going to be rivetted to that, and we're going to do what is required in order to deliver on that.

And we have exceptional circumstances to deal with at the moment, and we have exceptional tools to use at the moment, and a battery of those, and we will use them as as and when needed in order to, as I said, deliver on our mandate and deliver on our pledge to the economy. Christine mcguard of the European Central Bank there and the short in the medium term as well. For very busy, busy morning here in America, and also in London and across Europe. Francy laquad joins us right now,

start stage and screen and thrills. She could be with us this morning. Francy. First of all, what is seventy three degrees in March like in London. That's fair enough, it's nice. This is when all the bridge actually come out in general. But imagine after three months of luck. I mean there was everyone in the parks. The rules have changed, so people together, you can have six people together. But I have to say it was a high. Yesterday was the warmest March day I think in lost twenty years.

And everyone was out. And you take Eurostar underneath the channel, you come out, folks and if you haven't done it, the fields of France, the rural beauty as you go into Paris and whatever, the northern trades. You know what, I don't know what I'm like, Hey, it's French France in Francine. I was actually reading Lamond an hour ago in my fractured French. They're going to be in lockdown while you're swimming in the Thames. Well, so we're not allowed to go to France at the moment, right, Remember

there's lockdown there's lockdown. So what we heard just a short while ago is that to the in France, both of them actually could be set to extend restrictions. And I think the French president is due to address the nation at eight pm local time. But if you're in London, we're coming out of lockdown. But again, the schools were closed for three months, tom and you're absolutely not allowed to leave, you know, for foreign leans unless absolutely necessary.

So you know, unless I had a very pressing reason to go to Paris, I could not take that eurostart to end up in Gaudino. So, Francine. Here in the US, as you're probably well aware, we feel like we're emerging from the end of this and people are getting out and maybe it's just the weather, but the vaccines are going so well here, and I think a lot of folks here in the US were just shocked at the inability of Europe in particular to manage its vaccine program.

What's the feeling on the ground, Well, you're right, Paul, it's actually a disgrace. But this for you know, I guess structural reasons. So if you look at what the US did, I think you guys have double the vaccine doses needed for the whole population, so you could vaccinate everyone twice. Over the UK, we're doing. Okay. What Europe decided to do is because you have the European Union to you know, basically decided to to choose it as a block. So they negotiate it as a block, and

they were late to the game. They were about three months late. A lot of people don't want the vaccine, so they're very, very behind, and they're worried about variants, which is why we're in a third lockdown in Europe. And it seems like that there's this stop and start vaccine just because it's but you know, it's difficult. It's many countries together and they didn't directly negotiate, but took time and they probably negotiated badly. Franc La Clause, thank

you so much. On conversation with Christine Legard. Look for that digitally across all of the Bloomberg platform. This is an interview, a conversation. We're going to talk about one story, but we've got to get to the general international boom that's out there. Europe off on that, which means David Harrold must have had a good year. He was in like the hundred and fourteen percentile something like that. He

just did killer year. You know, it's like boom and then there's a couple of years and then boom again. David Harrow joining us with Harris Associates and of course ok Mark International. Fun. David, it's all great, and let's try to get to a general portfolio discussion in a moment. You are visible with BMP, Perry bat and other selected banks, including a small Zurich startup called Credit Swiss Group. Uh. What was it like when you heard once again your

bank was really in trouble. Yeah, it's very frustrating. It's very frustrating Tom that it's almost two step forwards, one step backward, step forward, two step backwards because they make progress in some areas, and they've done a very good job in certain areas, and then you have these little blow ups, David, frustrating. I mean, you and I we eat at the same McDonald's. But before we go down to Credit Switz and Zurich, it's fourteen dollars for a

number two value meal. David, you know this story, and you know Zurich better than most anyone we speak to. When did are they taken out of their misery. When do they mate? When did they buy somebody else? Or when does somebody buy them? Where does Credit Sweeze fit

in five, in ten years out? Well, to be honest with you, I think it's quite obvious that the two Swiss investment banks have trouble competing with the big will call the Anglo banks, you know Morgan, Stanley, Goldman, Sachs, JP Morgan, and there has been talking, as you know, there has I mean, something I think can be done with ubs this investment bank Credit suits. I mean, there's just too much duplication there and I think there is potential for there to be a Swiss powerhouse, but there

are technical difficulties to this. But I think one has to, especially in light of what's happened in the last few weeks, one has to really ask oneself whether there's something that can be done to add critical mass to these investment banks by putting them together. David I worked for Credit Else By the way, Yes, so David I worked for Credit Swiss for five years way back in the day.

But so I followed this story very closely and like it just seems like the time and time again they find themselves in situations that no bank would want to find themselves, and they do it more frequently than others. What is it about their culture? Do you think that kind of puts them in positions where they're in, you know, situations they just don't want to be in. Yeah, I mean there have been periods of time, by the way,

where they have done very well. Don't forget during the Global Financial Crisis they were one of the few banks to come out relatively unscathed. They did a good job there. But before that, if we go back into history, the tech bubble, they did not do well. This is the first time we actually made an investment credits after they kind of collapsed after the tech bubble, they had a change in management. We invested in it, actually did quite well, sold out most of the stock, probably should have sold

it all out. And then, of course post the global financial crisis is where you saw these banana pels and what I think it's happened. You had Brady Dooyan a CEO, good, good person, but he didn't take risk off the table. He didn't change the culture like should have been done. And then Tejon came in started to ruffled a lot of feathers by the way. Don't forget when when t TM came in, he ruffled a lot of fun. Yes, and he should have ruffled a lot more, it looks like.

But I have to say, and I've been very public about this. I mean, the chairman has been in place where over ten years. He comes from a law and entertainment experience, and all of this has happened under his watch. He was the wrong person to be the top of the organization. We argued vociferously for his removal last February and March, and it didn't happen. And it's finally, you know,

we're onto his last month. There's a very very strong banker coming into Credit Suite starting May first, and I think it's it's literally like the Calvary, because you need someone from the outside to go through that organization and to change the culture, changing incentives um and so the inherent strength this bank has can't come to the surface instead of the weaknesses. Right now, the weaknesses are coming to the surface. What needs to happen is the strength

needs to come to the surface. So David, you know, obviously the Credit Swiss has got this tremendous private banking franchise on a global scale. But I'll tell you the investment banking chops that they have are very very strong on a global scale. Are you of the opinion that they should try to be a global investment bank or do you kind of put them in the bucket of a Deutsche Bank, where, you know what, they really just

focus on Europe. I think they should focus on the franchises where they could develop a competitive advantage, and whether that means certain segments in Europe or other certain segments around the world. I don't think being a universal investment bank um that. I don't believe they have the capability

to do that. And maybe if they did, put together with with ubs would see that, but at this stage there's no demonstration that they are capable of being a full fledged global investment David, one more question on this, this huge uproar, this margin, calling the billions billions loss We still don't know all of it, folks. One thing I noticed, David Harrow is the sense of geography. Nomurs over there, credit suite is over there, and others who did better are over here. Did geography play into some

of the allocation of these billions of losses? That's a good question. I don't really have a clear answer to that. Um. You know, the moral and credit suites are two very different companies by the way, UM, I mean the Japanese have always had this history of even the worst results the Swiss credit suite in terms of investment banks, and then you know what would happen is they would go somewhere new, blow it up, retreat, and then go back

after a few years. You know, I think it might have something to do with um in the client relationship is something one could look at. We gotta switch at the time we got left David Herold. The international in investment, so much of it is predicated in a week dollar. Can you succeed without a week dollar? Oh? Yes, yes we can. We can't succeed without a week dollar. UM. In fact, a strong dollar with a week foreign currencies

would would be would be good for my companies. You know, for a long time, for a long time, you know that we had this currency thing in our face. And now perhaps some of its turning, meaning we had a stronger dollar over the last four or five years. UM. This eventually benefits foreign companies. But I think more importantly is this notion of where the value place tend to be. If you look outside of the United States, the negative has been the weaker tech sector overseas and stronger what

will call kind of value place. And I think this is what one of the things that will help UM you know, foreign investment returns, is that the bubble what's kind of blown from tech companies that don't make money. And I want to differentiate between two things. Cash flow streams are what make a company valuable, and some tech companies have huge market values with low um cash flow streams, and others have a cash flow stream that supports the

market value. And I think the rotation that we will see the continue to come out of our those companies which have low cash flow streams and high market values. And what were we see the opposite high casual streams and low market values is in a lot of the European industrials and materials and financial companies. And this is why I feel very very good about European equities over the next twelve eighteen months. David Harrow, Thank yous from Positions.

Gotta leave it there, ok, Mark David Harrow in Chicago, greatly appreciative. This is the Bloomberg Surveillance podcast. Thanks for listening. Join us live weekdays from seven to ten am Eastern on Bloomberg Radio and on Bloomberg Television each day from six to nine am for insight from the best in economics, finance, investment, and international relations. And subscribe to the Surveillance podcast on Apple podcast, SoundCloud, Bloomberg dot com, and of course, on

the terminal. I'm Tom Keene, and this is Bloomberg