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Tillerson Is Making a Mistake by Skipping NATO, Stavridis Says

bloomberg-surveillance-podcast economics-business-work Apr 11, 2026 source →
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103
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economics-business-work
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8 min
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Tillerson Is Making a Mistake by Skipping NATO, Stavridis Sa

Claims from this story

Every atomic assertion extracted from the underlying record, ranked by evidence strength.

Admiral James Stavridis considers simply not attending NATO meetings a "diplomacy 101 violation."

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Secretary of State Rex Tillerson will not attend his first NATO meetings.

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Admiral James Stavridis believes Secretary of State Rex Tillerson's decision to skip NATO meetings is a mistake for a new administration.

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Reading consciously is a controllable method for individuals to learn and develop leadership skills.

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David Rockefeller's legacy is strongly associated with his belief in fostering relationships between the United States and the rest of the world, particularly Latin America.

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Paul Quincy suggests investing outside the U.S. in markets with depressed valuations and improving profitability, such as Europe and emerging markets, to catch up in the bull market.

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Admiral James Stavridis believes the balance between domestic policy ("butter") and military spending ("guns") has favored domestic policy for the past eight years and needs adjustment.

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"Guns" in the "guns vs. butter" debate encompasses State Department budgets, foreign aid, and international security programs, not just military hardware.

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A defense increase is occurring to rebalance the "guns vs. butter" rheostat.

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The "team of rivals" approach, involving bipartisan cooperation, is needed to address national challenges like the deficit.

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David Rockefeller passed away at 101 years old.

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William Rhodes first met David Rockefeller in 1977, almost 40 years prior to the interview.

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David Rockefeller founded the Council of the Americas and the America Society in 1965, demonstrating his interest in Latin America.

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David Rockefeller was characterized by patrician discretion, control, and prodigious economic abilities.

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David Rockefeller held a Ph.D. in economics from the University of Chicago.

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David Rockefeller founded a center for Latin studies at Harvard University.

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David Rockefeller was a confidant to world leaders including Deng Xiaoping and Nelson Mandela.

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William Rhodes believes David Rockefeller would advise President Trump against trade wars, advocating for free and fair markets.

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David Rockefeller was a strong supporter of the International Monetary Fund and the World Bank.

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William Rhodes notes a post-crisis reticence among bankers to openly champion capitalism and American banking abroad.

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David Rockefeller used his banking platform to improve international relationships and foster global closeness.

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Trust in banking has been lost and needs to be restored by emphasizing the banker's role in helping the community.

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The current period is described as the greatest bull market in history.

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The S&P 500 has compounded mid-teens gains over the last five years.

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Emerging markets have seen a 1% compound return in U.S. dollars over the last five years.

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European equities have seen approximately a 5% compound return in U.S. dollars over the last five years.

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Valuations in European and emerging markets are reasonable, and profitability is convincingly improving.

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Major European elections pose a potential risk to European equities and the Eurozone.

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Many investors are holding back from European equities until after upcoming elections, despite improving fundamentals.

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Paul Quincy advises investing some money in European equities now within a diversified portfolio, rather than waiting for election clarity.

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The market may be overestimating the risks of an anti-euro upset in France.

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Eurozone growth is currently between 1.5% and 2%.

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European corporate profits are more leveraged to global economic trends than GDP, distinguishing them from other regions.

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European companies have invested heavily abroad due to sluggish domestic economies over the past decade.

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European companies' significant exposure to emerging markets negatively impacted their profitability during the recent downturn.

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Paul Quincy forecasts proper real profits growth for European companies this year.

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Share buyback activity, a critical component of the U.S. bull market, has not yet convincingly spread to Europe.

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Low bond yields in Europe make share buybacks even more compelling for European companies than for U.S. corporations.

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Currency movements are contributing to revenue growth for European companies.

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European companies have significant commodity exposure, benefiting from the commodity cycle's trough about a year ago and subsequent improvement.

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European banks are raising capital, becoming healthier, and are attractively priced.

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The question of whether banking operations will relocate to Dublin due to Brexit is raised.

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Paul Quincy states that decisions on relocating banking operations to Dublin are pending clarity on post-Brexit rules.

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There is significant uncertainty regarding post-Brexit rules for financial institutions.

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Neil Shearing asserts that Mexico possesses leverage and bargaining power in negotiations with the United States.

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Mexico holds economic sway over U.S. agricultural imports.

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U.S. agricultural imports to Mexico originate from Midwestern states that supported President Trump's election.

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Mexico holds political sway over the U.S. due to its importance in the war on drugs and managing Central American immigration.

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Neil Shearing disputes the notion that the U.S. holds all the bargaining power in NAFTA renegotiations.

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Neil Shearing forecasts that NAFTA renegotiations will take years rather than months.

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Substantive trade deals require a long time to negotiate.

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Economic and trade negotiation cycles do not always align with political cycles.

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U.S. midterm elections are scheduled for the end of next year, and Mexican presidential elections are in the middle of next year.

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NAFTA renegotiations could be delayed by upcoming U.S. and Mexican political cycles.

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Neil Shearing advises against viewing trade benefits solely through deficits, surpluses, and balances.

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Gains from trade arise from the exchange of goods and services, allowing countries to specialize in areas of comparative advantage.

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The benefit of trade for the U.S. is its ability to concentrate production in areas of comparative advantage, not trade surpluses.

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Mexico has not been a major beneficiary of NAFTA, experiencing only a slight uptick in productivity growth.

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The Mexican peso has strengthened from 22 to 19 against the dollar.

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The Mexican peso and most emerging market and developed market currencies have strengthened against the dollar this year.

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