Intelligence analyst, looking at a 5. 3 times price to sales basis for 2020. This is higher than netflix, which trades at 4. 7, and apple, which trades at 3. 7 times price to sale. As you know, here in San Francisco, tons of conversations about valuation, Corporate Governance, i spoke with dean munson and he said he likes the peloton filing much more than the wework filing. He liked the way they were transparent. From his perspective, it seemed like they were more transparent than other Companies Like we work. David you know better than i it is all about growth in Corporate Governance with these ipos. Where does future growth come from . Taylor continuing to expand in areas like hotel. They only tapped a little but of that market on the hardware side with the bikes and treadmills. Continuing to get those monthly subscriptions for about 39 a month. I love that you mentioned growth because we are speaking to brumberg tech who has been analyzing this stock. He likes the Topline Revenue growth of 110 yearoveryear. They are still looking to get those numbers 60 to 80 and the next couple years. Continuing to see double or triple digit growth. The bottom line always in question, increasingly in San Francisco as the losses are accelerating. We should mention again in that said we willon prioritize growth over profit. We might not ever get to be profitable. You wonder if they included that to cover themselves a little bit. Eventually you have to see a path to profitability. That remains a key question. On seeingore positive that future pastor profitability than some of the other unicorns we have been talking about. David what about the Corporate Governance . There were so many issues with wework. Our other ipos cleaner than some of the others . Sonali are they cleaner than wework . Probably everybody. If it is a good company, people will buy it. The profitability question is a good one. Looking back at the prospectus for peloton, their Market Opportunity is a 4. 2 trillion dollars global wellness industry. How much of that do you capture . I want to go back to valuation. We have the king of valuation saying it would be about 23. 94 would be a fair price. That is lower than what we are seeing it open at. David doing better than that. , what competition does it have . Taylor that is a good question. I was going to ask that one of my analyst because right now it does not seem like there is a lot. Youve been talking about how pe loton has been replacing some of their competitors, those companies where the consumer likes the convenience factor of being in their home and being able to work out when they want. For now, it seems like palatine ton has been able to capitalize on that. There has been a lot of competition in the connected fitness based. Right now it seems like peloton has been pretty good at dominating this market. David what about application proceeds . What will they do with the money . Sonali they will use it to grow. David what is growth . Is it largely marketing . Sonali it is largely what taylor was talking about. Mostly hardware, mostly marketing. Who are their competitors . This global wellness they are tapping into and how they cater to it. Is iow much of it understand you subscribe to the is i understand you subscribe to the service . Which percentage comes from hardware and subscriptions . Taylor we know for the hardware side you have the 2000 bike and the 4000 treadmill and then the 39 monthly subscription. That is the way theyre getting it to be valued more as a squeice versus an applee Margin Company with hardware margins. I know they want to continue to can i know they want to continue to grow both. You have to get the hardware there and the software. You talk about marketing expensive expenses. Youre getting about a 40 gross margins, and if you go down to net income, that is where im taking a look at my screen , we will dig into the companys financials and that is where youre getting negative numbers. A lot of the criticism around peloton has been if you are so good, why are you spending so much on marketing . The Companies Continue to say we are prioritizing growth over profitability right now, so Growth Continues to be the key push. David you have to worry about is it growth or maintaining subscriptions because you have to worry about turn. Stay with us. Romaine bostick is here with us. I will get a sense of how this sense of how thisg market is operating overall and the backdrop to what we are seeing . Romaine the backdrop is pretty subdued. Most of the rotation with regards to equities is in the defensive sectors. You have a date when a lot of the gold bugs are taking the decline we saw and using it as an opportunity to buy the dip. We have seen oil prices down because of saudi arabia. You have a market that is ignoring some of the theatrics in washington. Taking a look at the broader economic issues, looking at a q1 earnings season coming up that is going to be probably the worst earnings season of the year and you are seeing actions reflected in what is going on today. David you reference the theatrics in washington. We have Marty Schenker right here. Opene watching the peloton against this very dramatic hearing with mr. Maguire, the acting dni director of National Intelligence. What are you making out of the hearing so far . I think maguire is the start of the hearing. I quipped maybe they should have made it a closed hearing, because i do not think any of the congressman distinguished themselves. In his Opening Statement he was quite impressive. He made it clear, chronological explanation for why he did what he did and a legal explanation. The democrats questioned why he went to the white house and why he went to the Justice Department when his Opening Statement explained just that. Tried torepublicans undermine the democratic process of bringing this issue up in a public setting. I do not think it sheds much light on the issue at hand. What is next is going to be the interesting thing. There is no Clear Strategy from the democrats that i can see on how they take this forward from here . Is youone rule of thumb do not want to go after a navy seal. Of nationalre, head intelligence, commanded seal team two. He has been through a lot worse than a house hearing. Marty i do think he did his the interesting parts were where the democrats tried to get him to say has he discussed this incident with the president of the United States . He meets with him on a daily basis. He refused to go there. He said those conversations are subject to executive privilege and he would not talk about that. David one of the questions was why didnt he come forward before . He had an answer. There was a question about whether it was within the letter of the statute, i referred to the Justice Department, they told me i had no choice. Marty as he pointed out, this is completely unprecedented. It has never come before the Inspector General, a whistleblower complaint that involved a nonintelligence agency official, and certainly never before for the president of the United States. He was stuck between a rock and a hard place. Where you go for advice . His first stop was to the white that,counsel, and after Justice Departments ethics lawyers. David put all this together with the markets if you can. We have a dramatic develop it in washington. It will not go away anytime soon. Are the markets reacting at all . Romaine the markets will always look at two things. The outlook for corporate profits and the broader economic context. There were four things coming out of washington. China, they were also looking at drug pricing and infrastructure and some of the issues with health care. Three of those four things, there was no progress to begin with. Trade was all there was. The market is asking the question how will this affect passage of usmca and talks with china and japan and europe . David thank you so much to Marty Schenker and romaine bostick, the coanchor of what did you miss. Peloton has fallen in its trading debut, now lets go to jason kelly standing by with the companies ceo. Jason i amt the at the nasdaq with john foley and you guys have been talking about the ipo today. It came out, you just addressed employees, what did you say to them . John i said we are building one of the Consumer Brands and Media Companies for the ages. Members and weng now have a lot of money on the Balance Sheet to create all of our hopes and dreams and influence lives and allow people to live better lives around the globe. Jason disappointed with how it came out in terms of the first 29e when you sold it at and it opened at 27 . What did you make of that . John it is an interesting time in the markets. There are a lot of political things, business things, anxiety. The markets are on edge. I do not have to tell you that. Some disappointment, but the biggest thing is we are playing the long game. Millionsis as building and millions of subscribers around the globe in the coming years. Now we have the money to do that. We are fully funded after this primary, so we are feeling confident. Jason when you think about the last couple days in the last couple weeks, you think about the market. Mind. Is on everybodys it is a tricky ipo market. You have a sense of where the miscalculation was or if there was one . Eighthhis is my fundraiser for peloton, and people either see it or they dont. There are believers and nonbelievers. To the people who believe and invest in peloton for eight years now, they have been very happy, and we will continue to delight the Capital Partners who invest in us. Jason you mention fully funded. What you do with some of that money . What does expansion look like . John we are building a Television Streaming studio in new york city, another studio in london where we will hire Foreign Language instructors. German language instructors are being hired out of the london studio for a German Market which we open in 60 days. We are investing in new content, new verticals, we brought the trade market last year. We have canada and the u. K. In germany. We are in investment mode. Someone earlier said you are losing money. It is semantics. We are investing money and we feel good about what we are doing. How do you feel about the Consumer Market . You sell a high end market . You sell a high end product. What do you hear back from your customers about their willingness to write a big check or charge Something Big on their credit card . John one of the things we think about is the optics on affordability. If you have a bite and you ride it, it is an insane value visibly anything else. Fitness has been a recession proof category for the last 15 years. More dollars went into fitness in 2008 and 2009 as they did every year. It is a secular growth over last 15 years and we think if we create the best value in fitness, if you ride your bike on average likes are written 12 to 14 times per month. You are paying a couple times per workout. That is orders of magnitude better than going to the boutique fitness world. We will show it is a better value than going to the gym. As youas you jason think about the value, do you think about lowerpriced products, either existing versions of what you have or different price points . John in the years ahead, i could see us with a strategy against our bike vertical and are trans vertical. Even today at 58 a month for the palatine bike, dividing that by two, that is 29 a month for the best piece of Fitness Equipment ever created. Mens health call it the best Party Machine on the planet. You can get that for 29 a month per person for the hardware. It is an insane value if you are using it. People do use it. Two years ago people were riding six or seven times a month and now it has doubled in the last two years as far as usage and engagement in our content. People loved it then and love it more now. Jason now that you are public you will get more questions about how you are spending money and where you are spending money. You have described the company in the roadshow as all sorts of things. A Technology Company a media company, it obviously does a lot more. Where will you be primarily spending money . Is this a content push that is coming . Hire at our core we cannot Software Engineers fast enough. Where a Software Company at our core. We have 13 Emmy Awardwinning producers and just hired a new content officer. She will build one of the most special media divisions in any category. At our core, the investment will going to technology. We will open Retail Stores and logistics and more markets start to show how multifaceted peloton is. Software engineering is at our core. Jason for all of the folks out there who have a bike or are thinking about buying one, what else you have in mind . We think about we hear about rowing machines and other things. Give us a peek behind the curtain. John we are not announcing products, but i can tell you i think rowing is a fantastic workout. Jason what else do you see from a Competitive Landscape . Youre competing with boutiques. Youve made the case about price. The same way people try to be the uber of something, they are trying to be the peloton. John every once in a while i will hear about someone being oton of something. We do not see likeminded competition. When i think about likeminded competition, it would be a wellcapitalized Technology Company. To date, that does not exist. I feel like we have a seven Year Economic miracle of our own where we do not have likeminded competition for seven years to appeal to your point about the brandon membership. We do not think much about competition. We focus on members. Everything we do is around delighting more members and delighting our existing members , moreith Better Software content, more value for the 39. That is our true north. Upgrade cyclee an that happens in this business . This is more expensive than buying an iphone. At apple they count on people coming back for more. Is that part of the business . John it is not. That is a beautiful part of why we love peloton. We do not need people to upgrade. We make 39 a month and we delight our members for that 39 a month. They can do that for 20 years and we will be happy. They do not need to buy new hardware. We are on our Third Generation of tablet on the bike. We email our early members and said we will start sending Software Updates your tablet because it is old. It is an antiquated piece. We offer to sell them a new tablet so they can effectively get a brandnew bike with a brandnew screen and brandnew chipset after five years, and then they will be happy for another five years. We are in it with them and we want them to be happy and continue paying their subscription. It is a unique business. We do not have a metaphor for what we are doing and we are having fun, but we are listening to our members and making sure they are happy. Jason stop jumping all over the place. Down a little bit. What is your final case. Stop is down 5. 5 . Why should people be buying today . John we have always proven the naysayers wrong. We think the total market of where we are taking we think peloton will be a winner take all global platform. There is 183 Million People around the world with gym membership, if we can get them better fit with Better Software and a better value, we think this is a big opportunity. We have the Balance Sheet, we have the team, a fantastic leadership team, great brands, great members. We think this is going to be a special company for the ages. Jason john foley, a lot of guests eager to talk to you. Continue celebrating. I know it is a big day. Thank you so much. David, i will send it back to you in the studio. David that is jason kelly with john foley. Now we will turn back to washington, where Joseph Maguire has spent the morning testifying before the House Intelligence Committee on the whistleblower complaint against donald trump. ,e now welcome john delaney former congressman from maryland and democratic president ial candidate coming to us from washington. Thank you for being with us. I understand you have a peloton. We should mention that. Delaney i do, i like it very much. David if you look at what is unfolding right now, you are now running for president , what you make of the impeachment investigation . Was Speaker Pelosi correct in launching the investigation . I think speaker delight i think speaker pull oc has played this perfectly. She resisted some of the calls to start the inquiry. Many of them were premature. She waited for something that had the gravity associated with it, which is this call where the president clearly try to get a foreign power to interfere in our election. That is the kind of thing that merits the inquiry speaker blows he has launched. I think nancy pelosi has launched. Theee david we see hearing has ended on capitol hill. To put you on the spot, we do not know the facts. We have six different committees investigating the facts to come up with the answer. If it comes to the point where they have to decide whether to vote on articles of impeachment, what would be determinative for you . What would you be looking for . Rep. Delaney there are three things. There is the conversation, which was wrong, then there is the notion there might have been a quid pro quo, and i think more work has to be done to determine that. If you have facts that there was a quid pro quo, then that is clearly impeachable. Then there is this coverup. As we all know, the coverup is often a bigger problem than the actual event. Involvessomething up clearly lawless behavior. I think we have to get to the bottom of the coverup and the bottom of whether there was a quid pro quo. David as you know so well, you would be the first to say this is serious business. If we are talking about the possibility of impeaching a to beent, we have serious. It is about much more than politics. It does affect politics. It is not President Trumps name who is on the transcript, it is not just the head of ukraine, former Vice President widens names on the transcript. Bidens namedent is on the transcript. Does he have a problem because of his son hunter . Rep. Delaney i have not followed the matter all that closely and ive not seen anything that would indicate the Vice President or his son did anything inappropriate or illegal. That is all i can say. I think the question for all the 2020 candidates, myself and everyone else included is we cannot get caught up in what is going on in the congress. That is the job of the congress of the United States. Nancy pelosi is leading that charge. What i can do as leader of the United States of america to improve peoples lives. I think the challenge for a lot of the 2020 candidates i do not think it will be a big challenge to me because im focused on talking to the American People about how i will improve public education, improve health care, build infrastructure, create jobs, improve pay, the kind of stuff that matters to them. That is going to be the challenge for all of the candidates to not spend time talking about something that is really under the skilled direction of nancy pelosi. David a challenge for the media as we cover this. We also want to cover substantial issues at stake in 2020. Lets talk about the issues and the candidacy. As you know, Elizabeth Warren is coming up in the polls, particularly in iowa. Is that because of her policies or because of who she is and how she appears as a candidate . Rep. Delaney senator warren is a very good candidate. We have three frontrunners, senator warren, Vice President biden, and senator sanders. My personal opinion is all three of them are vulnerable in a general election and i think that will become the conversation in the democratic party. The most important thing for democrats is to defeat donald trump so he does not get reelected. To defeat donald trump you have to capture the center. We saw that in 2018. That is how democrats took back control of the house of representatives, by winning independent voters. You win independent voters by talking about issues that matter to every american and not getting caught up in hyperpartisan politics. I think that is a real honor ability of senator warren. She is running on things, many of which not even a majority of democrats support. Substantive man of clear intelligence, yet you have not, on. You have improved the debate. Does there come a point where you say ive had my say and it is time to get out . Rep. Delaney if i do not do well in the iowa caucus, that is very important moment for the campaign. My view, quite frankly, is it is still early. When i travel around iowa, the only candidate who has been to all 99 counties, most iowans are undecided and are wrestling with a bunch of good candidates. I tend to think where the party will go as they will elect someone they believe they can win the center. David we will look for you in iowa. That is democratic president ial candidate john delaney. Coming up next, we will talk about u. S. China trade relations. This is bloomberg. Beyond the routine checkups. Beyond the notsoroutine cases. Comcast business is helping doctors provide care in whole new ways. All working with a new generation of technologies powered by our gigspeed network. Because beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected. To do the extraordinary. Take your business beyond. David this is balance of power. Westin. Id we turn to mark crumpton. Acting director of National Intelligence Joseph Maguire has been testifying on capitol hill following a newly released whistleblower complaint about President Trumps phone call with the ukrainian president. Mr. Maguire explained why the complaint was held until now. We consulted with the White House Counsels Office and were complaint was in fact subject to executive privilege, a privilege that i do not have the authority to waive. Because of that, we were unable to immediately share the details of the complaint with this committee. Schiff said after reading the complaint, the allegations are deeply disturbing. Filings for u. S. Unappointed benefits rose for the second straight week. Jobless claims increased to three week i up 213,000 remaining near historically low levels. The unpleasant rate among people eligible for benefits fell to 1. 1 . Former french president has died. He served as president from 1995 until 2007. He was 86 years old. The British Parliament has rejected the governments request to adjourn for a week so that conservative lawmakers can attend the partys annual conference. It is unclear whether lawmakers will go to the gathering that starts sunday. Parliament returned to work this week after the u. K. Supreme court ruled Prime Minister Boris Johnsons suspension of the body was illegal. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more 120 countries. I am mark crumpton. This is bloomberg. David almost lost among the drama over the release of the transcript of President Trumps conversation with the leader of ukraine yesterday is the announcement of the first stage of a trade agreement between the u. S. And japan. Welcome now to sitter tom carper. Ash senator tom carper. I want to talk about u. S. Japan trade agreement and other things but i have to at least get the first reaction what is going on with the impeachment. You are a member of the senate. You would be called on the vote. Im not asking how you would vote, but what are you looking for . The truth. Thomas jefferson used is that when people know the truth, they wont make a mistake. We need to know the truth. The House Intelligence Committee is trying to get to that. I do not know the acting director of intelligence. I know his predecessor very well. My hope is he will be helpful to us into our country to get to the truth. David lets turn back to the u. S. Japanese trade deal. We did see President Trump with the Prime Minister yesterday announced the first stage. I understand it is mainly about agriculture with digital. What do you make of it . Is it important step forward . You ask him how he is doing, compared to what . This skinny deal compared to the Transpacific Partnership that this administration pulled this out of, this is a cheap imitation. Tpp was superior in on every way. 12 nation trading block, 40 of the worlds. We were leading it to my china was on the outside until they clean up their act in a lot of ways. Why we would walk away from that in order to take this is beyond me. It is better than nothing, but not even close to the Transpacific Partnership. David i wonder with respect to japan about the approach of taking it a piece of a time, this is the first stage. It didnt really deal with auto tariffs, which President Trump has at least threatened. The Prime Minister said he understood. This is what shinzo abe said yesterday. I received direct confirmation from President Trump that the u. S. Wont slap tariffs on japans auto parts exports. David s editor this feels a little like damocles. Why are we doing it this way . It is beyond me. The real question is, why do we get out of the Transpacific Partnership . Is this better than nothing . I think it is. We will wait and see what else unfolds. Californias go to and automations. There is now a lawsuit between the state of california and the federal government about whether the federal government can essentially preempt the approach of california, which is more restrictive on automations. You have been outspoken saying the u. S. Government is wrong in bringing antitrust action against the car companies. Given your thinking about why the federal government should not be Setting National standards. The Clean Air Act legislation and Court Verdict since that time, california had the ability to have more stringent standards because they have these terrible challenges with the quality of the air. When i was in the navy station in that part of the world, and i know theyre putting up with. That is why they have the ability to do this. 13, 14, 15 Auto Companies want this deal. The tries the president is trying to let them not have this deal. It is good for the auto industry. It is good for quality and for climate change. It is one of those deals where you can have better air, cleaner air, do something constructive on climate change. The greatest sort of source of emissions is our mobile sources. This could be good for the environment and good for jobs. Why shouldnt we be for that . I am. David let me talk to you about infrastructure and how we pay for it. In new york, we just woke up to the news new jersey is going to increase the tolls across bridges and tunnels across the hudson river to try to paper some of the upkeep. What about the gas tax . Is there any movement on that . Why couldnt we increase the National Gas Tax and paper some of the really badly needed Infrastructure Improvements across the country . Were having a debate right now in realtime to carry our government passed the damocles at any of this month. End of this month. Were looking at a budget billion. 850 next year, 1 trillion. Those are unbelievable numbers. I am one that believes if things ,ere to happen worth paying for user pay system. Now were going to see more and more in the years to come a lot more electric vehicles on the road. Eventually, we will go to something called vehicle models travel whether were using , electrichydrogen powered vehicles, some but he paying for it. Right now were doing a six or seven state pilot. Our legislation transportation calls for a 50 state pilot. I think by the end of this decade, the next decade, that is where we will be. That is for the future. In the meantime, we need a bridge to the future and i think it should be largely userpay. David senator, thank you for carper. E, democrat tom coming up, the three possible paths to the possible u. S. China trade negotiations. The new report on the u. S. Trade war. We will talk with ian bremmer about the most likely outcomes next. This is bloomberg. David you are watching balance of power. The impeachment inquiry into President Trump maybe the talk of washington today, but u. S. Trade relationship is going to be the talk for years to come for both countries and the entire world, for that matter. Eurasia group has joined with Vontobel Holding on what comes next. For an exclusive review of what they found, were joined by ian bremmer of Eurasia Group and dr. Zeno staub, head of vontobel. Withe consumed right now the impeachment. Connect these two things. To what extent is what were seeing in washington going to affect the longerterm relationship with china . The likelihood of getting a deal with the chinese had gone way down over the last two month and the Chinese Government has now decided theyre going to wait until the next election. The fact trump is going to be consumed, not just distracted, with internal impeachment, the fight of his life, means the bandwidth to actually get something meaningfully done with internal oneonone xi jinping has gone from low to open to small. David lets go to the three scenarios you see developing in the most likely from your point of view is basically an extended dispute with china. A second one is we work with our allies to try to bring something about. The third is a deal. The least likely. David by a longshot. Talk about the first one, link the struggle. What does that mean for an investor . Seriously start to impact the design of the global value chain. So investors have to start to think seriously, will this bifurcated world lead to environment where the markets that companies have access to , and whatlly be split does that mean then for the Growth Potential of the Different Companies . What does that mean for the cost base of Different Companies . And how do they factor that in to the valuation of each and every stock they are holding . David ian, you talk about digital, technology. Take that bifurcated world dr. Staab talked about and apply it to where theyre almost like to internets. What does that do . Were not talking about a bifurcated world on all of the economy. People are still going to buy food on the Global Markets and we do not see those tariffs continuing to shoot up. Same thing with oil and gas. About theou talk digital economy, which is right now the smallest piece but the fastest growing, the most important this is going to be no longer a globalized world. It is going to be a u. S. Driven set of standards and i chinesedriven set of standards that right now is about things like the internet and social media and voice recognition. But in five to 10 years when 5g rolls out and it is integrated with things involving everything with a chip, now youre talking about infrastructure, smart cities, autonomous driving, pharma and biotech. In other words, that part of the Global Economy is getting a lot bigger and the u. S. China relationship that is fragmenting globalization is going to affect a lot more countries. David vontobel is global investment. Your known around the world for investment. What does that mean for tech investment, which has been one of the big drivers . That is where the growth has been coming from, tech. You will have to look at the different Tech Companies and the respective business models. Business models that are naively extrapolating a globalized flat world, you will have to be very careful. You will have to look at where on the whole markets of the Tech Companies come are they scalable . Do they have the skill to become really big in this market . And you will have to see how these companies and the countries, their host countries, will probably have to take decisions on which side they are on. David is there anyway to have a different result . Reading the report, you point out this did not start with donald trump. This was a long time coming. We both know people have written this, secondlyke power over taking a firstrate power. War. David was it inevitable we were going to end up in some true clash with china . I dont think we are inevitably heading toward war because china is a tech superpower is very different than chinas military power, which is only regional. The gap in military spending between the u. S. And china has grown over the trumpet administration. But if you looking for a plausible, more positive outcome it is the americans start working with the europeans and the japanese core allies on digital. In other words, what we really need is a World Trade Organization for data. Where the europeans have the regulators, we have the companies, but were working together. We build something so robust the chinese feel they will be excluded from the world key markets. Trump has no inclination to build two lateral right now. He is proud of bilateral deals like with japan or india or south korea. But also there is so little trust from the europeans of the United States on these issues post snowden, which is not a trump point. As a consequence of that, the europeans are talking about a third way, which i believe z and believes iseno impossible given where the companies are right now but losing a lot of time what we are continuing to move toward this technology trap. David does europe have more to lose than anyone else . They are sort of caught in between the u. S. And china. I fully agree that europe has a lot to lose. Their Current Situation is a lot of export space. A lot of Energy Supply tilted toward russia. And then on the security side, there is the cooperation and closeness to the United States. That is an unhappy combination. David lets look at winners. For example with u. S. China, we are seeing some of the supply chains change, Southeast Asia seems to be stepping up. There are some opportunities. There are some winners on the sidelines. Clearly, the companies that are to be closest to the United States and china are going to see an advantage first mover advantage. There is a reason why the u. K. Wanted to be the first of the europeans to sign on to the Asian Infrastructure investment bank. Back then cameron come osborne thought they would be able to benefit mightily from the chinese. You will see some of that. But also, i believe, we believe that the american tech sector is going to become more strategic. You will see more industrial policy around the tech sector. Youll see more state capitalism from the United States. That mean the companies that are fastest to understand that, it is not facebook. It is microsoft, amazon, that really orient themselves toward washington and toward more patriotic we are going to ensure the american policy is supported by big tech. I suspect those models will do better. David where do you see potential winners . Another important aspect is technology will impact the need for very large global value chains. Technology will also enable the production and Industrial Production can actually come closer to home where the consumer is. Companies and in neighboring countries of the tw looking to the neighbors ofo big ups u. S. , neighbors of china. David does china think they have grown big enough they dont need us . No, but they feel like they must get to that point. They have taken the single lesson they have taken from the last are indolent with trump as they can never be so vulnerable. They have to work as fast as possible to be able to build their own semiconductors as opposed to importing 90 . If they cant, they have to ensure the places they get them from they actually have control like taiwan and south korea. s softball question for you come in this world, theres been such a shift toward passive investing. Do you need to be light on your feet . In this world, only active works because passive was driven by things that come to anand. Come Monetary Policy affect world cup and global rule of law supported by american might. Now it is back to make your calls. David i toss to a softball and you hit it out of the park. Dr. K you to ian bremmer and zeno staub. Great to have you with us. Representative gil cisneros, a democrat, nearly one his contest in californias 39th district last fall. A district with a strong republican constituency. It was notable that he, navy veteran, joined with six other moderate members of congress to write an oped in the Washington Post urging speakers pelosi to move forward on the impeachment inquiry. We welcome the congressman now from capitol hill. Explain to us as i say, it was not clear it was a political move on your part because i would think theres a lot of trump support in your district. What drove you to join the bed oped . When we started hearing more and more about ukraine and the president allegedly was getting involved in trying to use the power of his office to help him politically, me and my colleagues got together. We talk all the time. We started talking about this issue and decided we should write an oped on this Encouraging Congress to get out there and really start investigating and looking into this matter because if there if everything going on, if the president did in fact get involved in there and using his office for his own political advantage against one of his potential candidates in the upcoming president ial election . As an something we saw Impeachable Offense and could not stand for it. We all took an oath to support and defend the constitution of the United States. We saw this as being part of that. David so this is not so much a matter of district law, whether criminal law was violated, it is the constitution. Let separate out two things. One would be quid pro quo, which could give rise to bribery charge. If there was a specific would pro quote, even if there wasnt one, trying to get fournette official to try to investigate it might be a high crime and misdemeanor . Well, yes. What the president did was he went to the president of ukraine and asked him to look into his potential dish right now joe biden is leading in all of the polls. This is probably going to be more or less his potential opponent in the upcoming general election for president. He is asking a Foreign Government to get involved in our election. We cant stand for that. This is an issue of National Security as well. He was withholding funds from an ally that is engaged in combat with one of our adversaries, that being russia. That puts our National Security risk. This is what we thought it was such a great issue and why we needed to take action and why we decided to write the oped. David besides the telephone call it self, theres also the issue about whether the president and the letter of the law under the Intelligence Community whistleblowers act. At the same time we just heard from the acting mr. Maguire who said, i had no choice. I referred this to the Justice Department and they told me not to. Are you satisfied with his answer . I kinda feel bad for him. I feel the administration really put him in a situation where he could not do his job. We know the law says that he was supposed to report this. He had seven days to turn it over to the Intelligence Committee. That did not happen. That is why the Inspector General informed the Intelligence Committee about this whistleblower report. Present feel the president put pressure on him. But it is all about doing your job and during our service. He needs to comply with the law, and it doesnt matter what the department of justice or what the president says. He needs to he should have stepped forward and brought this information to the Intelligence Committee as soon as he had a. David you are a member of the house of representatives. If it came to the point, you would have to vote on the impeachment return. What would you be looking at . I know you are a veteran and a loyal patriot. No one takes pleasure in the possibility of impeaching the president , no matter what party they are from. It is very serious business. What would determine for you whether in fact a bill of impeachment should be voted out . Like you said, this isnt something to be taken lightly. I think this is a sad moment in our countrys history that it has come to this where we are in a situation where we could possibly impeach a president of the United States. But right now we are counting on the Intelligence Committee to get out the information, to present it to us. I think the way it is going right now it never act the way it looks is the president did try and course of Foreign Government to investigate one of his potential local opponents in the upcoming election, withheld funds from the government our ally against one of our isersaries and to me that an Impeachable Offense. This is something we need to keep digging at and get this information and proceed how we need to proceed. David congressman, thank you for joining us. Democratic congressman gil cisneros. We end on the nota peleton. Came out the ipo, trading now and we will see how it is doing. Not doing well. It opened at 27. The ipo was at 29 when it open. We are still right around that 27 level. This is the third worst debut for Company Since 2008 that ipo to above 1 billion. It is kind of an ugly session. It could be this is still kind of the we work hangover. He collapsed over the course of the past week. It may be negative sentiment. Also this is one of those companies that said, growth over profits. It is not profitable. For right now theyre prioritizing growth and investors dont seem to have an appetite for that. David is this a Technology Company or Hardware Company . Everyone was to be a Technology Company because you trade higher. It is worth noting hardware is the bulk of their business from about 75 of revenue or is the subscription recurring revenue is only about 20 . It is growing but still not there. I think that is why youre not seeing a lofty valuation like you would get for the Tech Companies. The grove texture is good. They are expecting to make 915 million this year, but also are losing almost 200 million. I think that is an issue on a lot of investors minds. David thank you so much for being with us. Edge,up on commodities u. S. Japan trade talks on agriculture. Signup for our newsletter to get the latest on Global Politics in your inbox every single day. This is bloomberg. Im all about my bed. This mattress is dangerously comfortable. When i get in, i literally say ah. Experience deeper rest with the awardwinning leesa mattress. This bed hugs my body. Im now a morning person. The leesa mattress is designed for every body. Providing strong support, pressure relief and optimized airflow to keep you cool. Hello bed of my dreams. Order online, well build it, box it and ship it to your door so you can try the leesa mattress at home. Love it, or get a full refund. And rest assured, returns are free and easy. I love my leesa. Today is gonna be great. Find out why so many people love the leesa mattress, then try it in your own home. Order now to get big savings but only for a limited time. Just go to leesa. Com today. You need this bed. Alix a win for farmers. Japan and the u. S. Get a trade deal. China buys more beans. Where is the oilrich premium . Reduction of saudi output, president macron saw tension with iran. Oil prices going nowhere. Got milk . How about a2 milk . We speak to the ceo aggressively trying to grow in the u. S. Competitive market. Steel. m alix welcome to bloomberg commodities edge. 30
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