>> COMING UP NEXT ON ARIZONA HORIZON.

REACTION FROM REPUBLICAN LEGISLATOR WITH THE GOVERNOR'S STATE OF THE STATE ADDRESS, AND ALSO TONIGHT, A CANADIAN AMBASSADOR TO THE U.S., AND A LOOK AT THE ECONOMY BY WAY OF A RECENT SURVEY OF SUPPLY CHAIN MANAGERS.

THOSE STORIES AND MORE ON ARIZONA HORIZON.

GOOD EVENING, AND WELCOME TO ARIZONA HORIZON, I'M TED SIMONS, GOVERNOR KATIE HOBBS YESTERDAY DELIVERED HER STATE OF THE STATE ADDRESS AS A NEW LEGISLATIVE SESSION CONVENED AT THE STATE CAPITAL.

TONIGHT, WE GET REACTION FROM TO REPUBLICAN SENATE LEADERS, WARREN PETEERSON AND SPEAKER OF THE HOUSE, BEN TOMA.

AND GENTLEMEN, IT'S SO GOOD TO SEE BOTH OF YOU AGAIN, AND PRESIDENT PETERSON, WE'LL START WITH YOU AND START WITH THE SPEECH AND WHAT HAPPENED BEFORE THE SPEECH.

YOU AND THE SPEAKER BOTH WENT AND MADE ANNOUNCEMENTS AND MADE YOUR OWN SPEECHES.

I DON'T REMEMBER THAT EVER HAPPENING BEFORE IN THE STATE OF THE STATE.

WHY DID YOU DECIDE TO DO THAT?

>> WELL, NOTHING MAKES IT TO THE GOVERNOR'S DESK UNLESS WE PUT IT THERE.

THE LEGISLATOR REALLY SETS THE AGENDA FOR WHAT'S GOING TO HAPPEN.

ANY BILL THAT'S INTRODUCED OR PASSED IS DONE BY A LEGISLATOR, SOMETIMES WE HEAR THE GOVERNOR SAY MY BILL OR MY PLAN, BUT GOVERNORS DON'T HAVE THOSE.

ONLY LEGISLATURES HAVE BILLS.

SO WE WANTED TO SHARE OUR MAJORITY PLAN, WE HAVE BEEN DOING IT BEFORE OPENING DAY BUT THAT WAS ANOTHER OPPORTUNITY FOR US TO BE KIND OF GIVE A PREVIEW OF SOME OF THE THINGS THAT MADE IT TO HIS DESK >> AND THE SPEAKER MADE IT SOUND LIKE A REBUTTAL BEFORE THE SPEECH WAS MADE.

>> KEEP IN MIND THAT THE JOINT SESSION OF THE LEGISLATOR IS NOT THE GOVERNOR'S SPACE, IT'S MADE AVAILABLE TO THE GOVERNOR OUT OF COURTESY, BUT IN MY OPINION, THERE'S NOTHING AT ALL ABOUT MAKING IT CLEAR THAT WE HAVE A DIFFERENT VISION ON SOME OF THOSE KEY ISSUES THAT THE BOTHER AND HER TEAM HAD BEEN PREPARING FOR A WHILE.

THEY HAD BEEN SEEDING STORIES ABOUT SOME OF THE ITEMS THAT WE COMMENTED ON, INCLUDING THE FISCAL CHOICE BILL AND SOME OF THOSE OTHER ITEMS THAT WE TOUCHED ON.

SO WE FELT IT WAS IMPORTANT TO MAKE IT VERY CLEAR THAT WE HAVE A DIFFERENT PERSPECTIVE.

>> PRESIDENT, LET'S TALK ABOUT THE BORDER, SHE WANTS MORE FUNDING TO BETTER COORDINATE THE BORDER RESPONSE, BETTER FUNDING AND BETTER COORDINATION, DOABLE?

>> WE HAVE BEEN PUSHING TO SECURE OUR BORDER FOR DECADES.

THIS IS A REPUBLICAN ISSUE.

UNFORTUNATELY, AND IT'S GOOD TO HEAR HER SAY SHE WANTS TO SECURE THE BORDER BUT HER ACTIONS HAVE NOT MATCHED HER WORDS.

LAST SESSION, SHE VETOED THREE BILLS THAT WOULD HAVE HELPED US AT THE BORDER AND WHEN SHE WAS A LEGISLATOR, I SERVED WITH HER, AND SHE DID NOT SUPPORT SECURING OUR BORDERS.

SO IT'S GOOD TO HEAR.

I THINK IT'S EVEN HELPFUL, YOU KNOW, IT'S HELPFUL FOR WHAT SHE'S SAYING, AND THE MESSAGE SHE'S SENDING TO WASHINGTON D.C., IT'S CERTAINLY MAKING HEADLINES AND I THINK WHEN PEOPLE SAY HEY, A DEMOCRAT GOVERNOR IS BASHING BIDEN AND THE FEDERAL GOVERNMENT, I THINK THAT'S HELPFUL.

I HOPE SHE'LL SIGN OUR BORDER LEGISLATION THIS YEAR.

>> SPEAKER, AS FAR AS HELPING BORDER COMMUNITIES MANAGE THE INFLUX OF MIGRANTS, WHAT DO YOU WANT TO SEE GET DONE AND WHAT CAN GET DONE AND PASSED?

>> I THINK JUST SO ADD ONTO THE POINT THAT THE PRESIDENT WAS MAKING.

WE HAVE BEEN TRYING TO RAISE THIS ISSUE MULTIPLE DIFFERENT WAYS, EVERY WHICH WAY WE CAN THINK.

WE HAVE BEEN PRACTICALLY SCREAMING ABOUT IT FOR A YEAR PLUS NOW, EVER SINCE JOE BIDEN HAD HIS POLICIES THAT ENCOURAGED THIS HUMANITARIAN CRISIS TO CONTINUE, AND NOT ONLY A HUMANITARIAN CRISIS, WE TALK ABOUT THE DETAILS THERE, BUT THE HUMAN TRAFFICKING, THE SEX TRAFFICKING, THE FENTANYL ISSUES THAT ARE COMING ACROSS, AND THE FACT THAT WE HAVE KNOWN TERRORISTS CROSSING THE BORDER.

WE CAUGHT A SMALL PERCENTAGE, BUT WE KNOW THERE'S A LARGE PERCENTAGE THAT WE HAVE NOT CAUGHT AND THE LOCAL COMMUNITIES ARE FEELING THE BRUNT OF THIS.

AND FINALLY THE GOVERNOR IS PAYING ATTENTION AND THEY CAN NO LONGER IGNORE IT, AND IN TERMS OF WHAT CAN ACTUALLY GET DONE, THAT'S GOING TO DEPENDENT DEPEND ON THE DETAILS.

SHE WAS NOT VERY CLEAR ON WHAT THOSE DETAILS WERE IN THE SPEECH, AND WE'RE WAITING, AND I CAN SPEAK FOR MYSELF AND THE MEMBERS OF THE CAUCUS, WE'RE WAITING TO SEE WHAT THE DETAILS ARE.

>> ANOTHER BIG ISSUE WITH PRESIDENT PETERSON IS WATER, WITH THE WILDCAT ON THE BILLS IN THE FOOTHILLS, AND SHE ALSO MADE A STATEMENT THAT THE GOVERNMENT NEEDS TO MOVE ON THIS, AND IT HAS NOT MOVED ADEQUATELY ENOUGH, CONSIDERING THE SERIOUSNESS OF THE ISSUE AND IF THE LEGISLATOR DOESN'T DO IT, I WILL.

WHAT ARE YOUR THOUGHTS ON THAT?

>> WELL, FIRST OF ALL, WATER IS AN AREA THAT WE SHOULD BE ABLE TO COME TOGETHER ON, AND WE WILL BE ABLE TO COME TOGETHER ON WATER.

WE HAVE TWO OF OUR REPRESENTATIVES, WE HAVE A LEGISLATOR IN THE SENATE, SENATOR KIRK, THAT HAS A VERY BIG WATER BILL COMING FORWARD AND I KNOW THAT REPRESENTATIVE GRIFFIN IN THE HOUSE WILL ALSO HAVE SIGNIFICANT WATER LEGISLATION.

I THINK OUR PERSPECTIVE ON THIS IS A LITTLE BIT DIFFERENT.

ARIZONA HAS 7.5 MILLION PEOPLE RIGHT NOW, AND WE'RE USE ON THE SAME WATER THAT WE USED WHEN WE HAD 1.5 MILLION PEOPLE.

OUR PERSPECTIVE IS WE CAN GROW AND CONSERVE MORE WATER, WE CAN BUILD MORE HOUSES AND USE LESS WATER.

I THINK HER PERSPECTIVE IS MORE SHUT IT ALL DOWN.

>> I THINK HER PERSPECTIVE IS GROUND WATER, AND IS THAT THE CONCERN?

>> YES, THAT'S A CONCERN BUT IT DOESN'T MAKE MUCH SENSE WHEN YOU SAY WE'RE GOING TO PUT A MORATORIUM ON HOUSING AND NEXTDOOR, YOU HAVE A BUSINESS THAT'S USING 5 MILLION GALLONS OF WATER EVERY DAY.

IT DOESN'T MAKE SENSE FOR HER TO SAY WE HAVE A FARM RIGHT HERE THAT'S USING 7-ACRE FEET.

WE'RE GOING TO PROHIBIT A SUBDIVISION TO GO THERE THAT WOULD ONLY USE ONE ACRE FEET.

THAT'SLER POLICY.

HOUSING ONLY USES 20% OF THE PIE OF WATER AND YET ALL OF HER FOCUS HAS BEEN ON THAT 20%.

>> SO DUE WANT TO CHIME IN ON THIS?

>> I DO, ACTUALLY, THE LAST COMMENT, HER THREAT IF WE DON'T DO SOMETHING, SHE WILL.

ONE OF THE JOBS OF THE LEGISLATURE IS TO KEEP THE EXECUTIVE IN CHECK AND WE INTEND TO DO THAT THIS YEAR.

THERE HAVE BEEN OTHER ACTIONS THAT HAVE ALREADY BEEN TAKEN BY THIS EXECUTIVE THAT HAVE BEEN CLEARLY NOT FOLLOWING THE RULE OF LAW, AND YOU HAVE SEEN IT.

AND THE SENATE PRESIDENT AND I HAVE NO ISSUE WHATSOEVER GOING TO COURT WHEN THAT HAPPENS.

SO TALK IS CHEAP AT THE END OF THE DAY WHEN IT COMES TO THESE SORTS OF STATEMENTS, BUT WHAT IS LEGAL IS GOING TO BE IMPORTANT.

AND IT IS THE ROLE OF THE LEGISLATURE WHETHER THE GOVERNOR LIKES IT OR NOT.

>> IS THERE BREATHING ROOM ON THIS ISSUE BETWEEN THE LEGISLATURE AND THE GOVERNOR TO GET SOMETHING DONE?

>> I AGREE WITH THE SENATE PRESIDENT, I AGREE THERE IS, BUT I'M NOT A BIG FAN OF THE GRANDSTANDING AND THE BROAD STATEMENTS.

>> JUST TO ADD ONTO THAT, WE ARE A COUNTRY THAT IS RULE OF LAW, A STATE THAT SHOULD BE RULE OF LAW.

THE HIGHEST ELECTED OFFICIAL IN THE STATE IS THE GOVERNOR.

WE SHOULD BE ABLE TO LOOK AT OUR GOVERNOR AS A PERSON WHO IS WILLING TO FOLLOW THE LAW.

SETTING THE EXAMPLE TO HER CITIZENS, I AM GOING TO FOLLOW THE LAW, AND I THINK IT'S VERY DANGEROUS AND IT'S VERY UNSETTLING TO HAVE THE GOVERNOR SAY I'M GOING TO BREAK THE LAW.

I'M GOING TO BREAK THE LAW, NOT ONLY THIS, BUT I'M GOING TO BREAK THE LAW IN CONFIRMATION.

>> I DON'T THINK THAT SHE SAID THAT, SHE SAID SHE WOULD USE EXECUTIVE ACTION AND IMPLIED IT >> SHE SAID IT WITH NOMINATIONS, SHE HAS TO SEND HER NOMINATIONS AND SHE SAID I'M NOT GOING TO TO DO IT, AND THAT'S HOW YOU SAY I'M BREAKING THE LAW.

AS FAR AS I KNOW, IT ONLY HAPPENED ONCE, AND THERE WAS A DIRECTOR AND THERE WAS AN AGREEMENT WITH THE SENATE.

THE SENATE KNEW, SO THERE WAS THIS GENTLEMAN'S AGREEMENT.

WITH DUCEY, I BELIEVE THAT HE ALSO HAD SOMEBODY, BUT THERE WAS AN UNDERSTANDING BY THE SENATE THAT THAT PERSON WAS SOON RETIRING SO WHY GO THROUGH THE PROCESS?

THERE HAS NEVER BEEN THROUGH A SITUATION LIKE THIS WHERE YOU HAD AND FAKE DIRECTORS RUNNING THE STATE.

>> ESAs, WE'RE NOT HEARING THAT THE ESAs HAVE TO GO NOW FROM THE GOVERNOR, BUT TRANSPARENCY AND ACCOUNTABLE, AGAIN, IS THERE BREATHING ROOM BETWEEN THE CHAMBERS AND THE GOVERNOR'S OFFICE REGARDING THOSE ISSUES?

>> I THINK YOU'RE ABSOLUTELY RIGHT AND I'M HEARTENED TO SEE THAT THIS MOVE FROM ELIMINATING THEM OR CAPPING THEM TO ADDING THESE SO-CALLED TRANSPARENCY MEASURES, I CAN POINT OUT THAT THEY CLEARLY DON'T UNDERSTAND THE PROGRAM OR THEY'RE TRYING TO MISS CHARACTERIZE HOW IT WORKS.

YOU FIND ME ANY GOVERNMENT PROGRAM OF THIS SIZE WHERE YOU HAVE CONCEIT LEVEL DEPOSIT ON EVERY SINGLE CHARGE.

AND I CAN TELL YOU THERE ISN'T ONE.

SO THE TRUTH IS, THE TRANSPARENCY IS THERE, AND THE ISSUE, THEY DON'T LIKE IT, AND THEY'RE TRYING TO FIND A WAY TO KILL IT WITH BUREAUCRACY AND WITH REGULATIONS.

BUT AT THE END OF THE DAY, IT'S NOT GOING TO FLY IN OUR CHAMBER.

>> AT THE END OF THE DAY, CAN WANT PRICE TAG COME DOWN BY WAY OF ACTION BY THE LEGISLATURE?

>> I WOULD LIKE TO SEE ON PRICE TAG, THE ESA COSTS $5,000, TO EDUCATE A CHILD IN A PUBLIC SCHOOL, IT'S ABOUT $13,000 TOTAL.

>> YOU'RE USING ALL ASPECTS.

>> YEAH, SO TO THE TAXPAYER, I'M NOT TALKING ABOUT THE GENERAL FUND.

BUT TO THE TAXPAYER, IT'S A BIG TAX SAVINGS.

HOW MUCH THAT WORTH?

THIS IS PARENTAL CHOICE, AND WE'RE GOING TO LET THE PARENTS CHOOSE, IT'S A SMALL PROGRAM.

BUT I WANT TO MAKE SURE THAT IF THE PARENTS WANT TO USE IT, THEY CAN.

>> BUT YOU UNDERSTAND THAT OTHER PEOPLE HAVE DONE RESEARCH ON THIS, AND THEY FOUND THAT IT DOES NOT SAVE THE STATE MONEY, IT COSTS THE STATE MONEY.

>> MY CONCERN IS NOT THE STATE.

MY CONCERN IS THE TAXPAYER AND THAT'S THE PARTICIPATE THAT'S IMPORTANT HERE.

AT THE END OF THE DAY, MARKET IS MATH, --MATH IS MATH, AND IT'S PROBABLY CLOSER TO $14,000 TO EDUCATE A CHILD AND IT'S ONLY COSTING US ROUGHLY $7,000 TO EDUCATE A CHILD ESA.

IT'S MATH AND ONE IS TWICE AS EXPENSIVE TO DO THAT.

AND SO AT THE END OF THE DAY, I'M OPEN TO ANYTHING THAT MAKES SENSE FROM A WORKABLE SOLUTION STANDPOINT, BUT THE WAY THAT YOU DO THIS IS NOT THE WAY THAT THE GOVERNOR HAS DONE IT.

WHAT YOU DO, YOU HAVE CONVERSATIONS WITH INDIVIDUAL KEY LAWMAKERS, AND YOU DON'T JUST COME UP WITH A PLAN OUT OF NOWHERE AND EXPECT IT TO PASS.

>> REAL QUICKLY.

>> I JUST WANT TO ADD ONTO THAT.

THE SPEAKER AND I WANT PROGRAMS TO WORK.

WE DON'T WANT FRAUD OR WASTE OR ABUSE, BUT IT'S IRRESPONSIBLE TO HAND-PICK THREE LITTLE SITUATIONS THAT HAPPEN OUT OF THOUSANDS OF PEOPLE.

OKAY, LET'S PROSECUTE THOSE PEOPLE AND IF THERE'S A CRIME, LET'S PROSECUTE.

BUT WE WANT THE SAME THING IN PUBLIC SCHOOLS.

WHAT ABOUT THE EMBEZZLEMENT?

WHAT ABOUT THE SCOTTSDALE SUPERINTENDENT THAT GOT INDICTED?

WE DON'T WANT THAT EITHER, RIGHT?

AS LONG AS THERE ARE HUMANS, THERE WERE GOING TO BE PROBLEMS.

YOU DON'T THROW OUT A GREAT PROGRAM BECAUSE THREE PEOPLE MADE A MISTAKE.

THE >> IF YOU HAVE A STANDARD, LET'S HAVE THE SAME STANDARD LOOKING AT IT ALL THE WAY ACROSS.

>> THANK YOU SO MUCH FOR JOINING US AND WE APPRECIATE YOUR TIME.

UP NEXT ON ARIZONA HORIZON, CANADA'S AMBASSADOR TO THE U.S.

JOINS US IN STUDIO.

Y >> CANADA'S AMBASSADOR TO THE U.S., KIRSTEN HELLMAN IS IN ARIZONA, SPONSORED BY THE PHOENIX COMMITTEE ON FOREIGN RELATIONS AND IT'S TAKING PLACE AT THE CENTER FOR LAW AND SOCIETY.

PRIOR TO THE EVENT AND EARLIER THIS AFTERNOON, WE HAD THE CHANCE TO SPEAK WITH AM BASS TORE HELLMAN.

WELCOME TO ARIZONA HORIZON AND WHAT DO YOU KNOW ABOUT OUR STATE?

>> WELL, I KNOW A LOT MORE TODAY THAN I DID FIVE DAYS AGO.

I KNOW IT'S GORGEOUS, AND IT'S DYNAMIC AND INCREDIBLY FRIENDLY.

I SPENT A LITTLE BIT OF TIME OVER THE WEEKEND IN SEDONA, AND I WENT TO THE GRAND CANYON WHERE I'VE NEVER BEEN BEFORE.

IT BLEW ME AWAY.

I COME TO A BEAUTIFUL PART OF CANADA BUT I TELL YOU YOU ARE GIVING US A RUN FOR OUR MONEY WITH SEDONA AND THAT WHOLE REGION.

>> TALK ABOUT WHY YOU'RE HERE AND WHAT THE ADDRESS IS ALL ABOUT.

AND THEN I WANT TO GET TO SOME PARTICULARS.

>> SO I AM HERE BECAUSE THE CANADA/ARIZONA RELATIONSHIP IS REALLY STRONG, IT'S REALLY DEEP AND IT'S BROAD.

AND I DON'T KNOW HOW MUCH PEOPLE FOCUS ON THAT.

SO I AM HERE MEETING LEGISLATORS AND BUSINESSES AND THE GOVERNOR AND I MET THE MAYOR, TALKING ABOUT CONSCIOUSNESS OF HOW MUCH INVESTMENT CANADA IS MAKING TO ARIZONA.

WE ARE THE BIGGEST EMPLOYER OF ARIZONANS, 25,000 ALMOST ARIZONANS ARE EMPLOYED BY CANADIAN COMPANIES, AND WE WERE THE BIGGEST INVESTOR IN ARIZONA OUTSIDE OF THE UNITED STATES.

AND IT SHOWS OUR SORT OF PRIDE, AND IT SHOWS OUR FRIENDSHIP AND PARTNERSHIP.

AND I THINK WE SHOULD BUILD ON THAT, AND I'M HERE TO TALK ABOUT THAT.

>> WHEN YOU DO SPEAK TO LEADERS, MAYORS, GOVERNORS, THESE SORTS OF FOLKS ABOUT THAT RELATIONSHIP, WHAT SHE YOU SAYING?

>> I SAY LOOK AT WHAT WE'RE DOING IN THE TECH FACTOR, AND LOOK AT WHAT WE'RE DOING WITH INTEL TOGETHER.

THE WE HAVE THE AEROSPACE SECTOR, WE HAVE OUR FARMERS AND RANCHERS, WE HAVE BIO TECH.

THE LIST GOES ON AND ON.

SO OKAY, THIS IS TERRIFIC.

AND WE'RE ALL STARTING TO FOCUS A LITTLE BIT MORE ON IT.

FOR EXAMPLE, THE LEGISLATOR AND THE TRADE COMMITTEE ENDORSED BY THE GOVERNOR HAVE DECIDED TO OPEN A TRAILED OFFICE IN CANADA, IN TORONTO AND THAT'S COMING VERY SOON.

FANTASTIC NEWS FOR US.

FANTASTIC NEWS, THAT'S GREAT AND WHAT ARE WE GOING TO DO WITH IT?

IN THE MEANTIME, WHEN FRANKLY, THERE ARE CHALLENGES EVERYWHERE, WE SHOULD BE REALLY DOUBLING DOWN ON THOSE RELATIONSHIPS THAT ARE WORKING WELL.

SO THAT'S WHAT WE'RE TALKING ABOUT.

>> AND CANADA OF COURSE THE NUMBER-ONE TRADING PARTNER WITH THE U.S.

IN THESE TROUBLED TIMES, GEOPOLITICAL ISSUES TALKING AGAIN ABOUT THE RELATIONSHIP AND HOW THAT FACTS INTO HOW CAN CANADIANS SEE THE WORLD AND HOW CAN AMERICANS IN THE UNITED STATES SEE IT?

>> WHAT I THINK ABOUT THAT IS, WE HAVE THE GREAT GOOD FORTUNE ON BOTH SIDES OF THE CANADA/U.S.

BORDER, OF HAVING A NEIGHBOR THAT NOT ONLY IS FRIENDLY AND DECENT AND COOPERATIVE, BUT ACTUALLY WANTS THE OTHER COUNTRY TO BE STRONG AND SAFE AND SECURE AND ECONOMICALLY STABLE.

WE HAVE INTEGRATION ACROSS OUR ECONOMIES, BUT ALSO, WE HAVE POLICE FORCES THAT LIVE IN EACH OTHER'S COUNTRIES AND OPERATE TO KEEP US SAFE AND SECURE.

WE JOINTLY PATROL OUR BORDERS, OUR WATERWAYS, AND WE HAVE A BINATIONAL COMMAND AND SO YOU WERE RESEARCHERS WORK TOGETHER EVERY DAY.

WE HAVE MILLIONS AND MILLIONS OF PEOPLE IN OUR TWO COUNTRIES WORKING TOGETHER EVERY DAY.

AND THE REASON I EMPHASIZE THIS, THERE WERE LOTS OF PARTS OF THIS WORLD WHERE COUNTRIES HAVE NEIGHBORS WHO DO NOT WISH THEM WELL.

WHO WISH THEM ILL. AND IT'S IMPORTANT FOR US TO FOCUS ON THE FACT THAT WE DO HAVE THIS GREAT GOOD FORTUNE AND HOW DO YOU MAKE IT STRONGER AND SAFER?

MORE PROBLEMS PLUSPROSPEROUS AND PERSPECTIVE OF OUR ENVIRONMENT AND THE RIGHTS OF OUR CITIZENS.

>> ARE THERE DIFFERENCES IN FOREIGN AFFAIRS?

>> BETWEEN CANADA AND THE UNITED STATES?

>> YES.

>> NOT APPRECIABLE.

WE'RE TWO COUNTRIES THAT ARE DEVOTED TO HUMAN RIGHTS, THE RULE OF LAW, KNOCK, SAFETY AND SECURITY.

WE HAVE WANTED FROM TIME TO TIME, HERE AND THERE, BUT ABSOLUTELY NOT WHEN IT COMES TO THE FUNDAMENTALS, WE ARE SIDE BY SIDE.

AND WE IN FACT HAVE A JOINT COMMAND, THE NORTH AMERICAN AIR AND DEFENSE COMMAND.

IT'S THE JOINT COMMAND THAT HELPED SHOOT DOWN THE BALLOONS IF PEOPLE WILL REMEMBER NOT TOO LONG AGO.

THAT'S THE ONLY JOINT COMMAND IN THE WORLD.

WHICH MEANS THAT THE AMERICAN MILITARY COMMANDERS COMMAND CANADIAN FORCES AND CANADIANS COMMAND AMERICAN FORCES.

IT SHOWS THE DEPTH OF OUR TRUST AND RELATIONSHIP AND INTEROPERABILITY.

>> IS THERE CONCERN THAT IT TRUST COULD CHANGE WITH THE UPCOMING ELECTIONS HERE IN THE U.S.?

>> Anchor: I DON'T THINK, HERE'S WHAT I SAY, THE RELATIONSHIP THAT WE HAVE BETWEEN OUR TWO COUNTRIES IS NOT DEFINED BY ONE OR TWO OR TEN OR 25 PEOPLE.

WHOEVER THOSE PEOPLE ARE.

IN CANADA, IN THE UNITED STATES.

THE RELATIONSHIP THAT WE HAVE IS DEFINED AND SOLIDIFIED BY THE MILLIONS OF CANADIANS AND AMERICANS THAT WORK TOGETHER THAT RESEARCH TOGETHER, THAT STUDY TOGETHER, THAT DEFEND OUR COUNTRY TO THE, THAT WORK TOGETHER IN OUR INTELLIGENCE SERVICES, LITERALLY MILLIONS OF OUR CITIZENS ARE WORKING TOGETHER EVERY DAY.

THAT, THE STRENGTH OF THOSE RELATIONSHIPS, WILL ALWAYS CARRY US THROUGH, AND THE STRENGTH OF OUR COMMITMENT TO SHARE VALUES.

I THINK THAT'S WHAT MATTERS AND WE'LL HAVE DIFFERENCES, OF COURSE WELL, WE HAVE IN THE PAST AND WILL IN THE FUTURE, BUT THINK PALE.

>> AND LAST QUESTION, YOUR BIGGEST CONCERN REGARDING U.S./CANADA RELATIONS?

>> I DON'T KNOW IF I WOULD CALL IT A CONCERN.

MY BIGGEST PRE OCCUPATION IS WE NOT TAKE IT FOR GRANTED.

WE NOT FOCUS ON THINGS THAT ARE GOING POORLY TO THE DETRIMENT OF THINGS THAT ARE GOING WELL.

I THINK WE SHOULD TAKE THINGS GOING WELL IN OUR COMMUNITIES AND NEIGHBORHOODS AND FRIENDSHIPS AND DOUBLE DOWN ON THEM.

THEY WILL MAKE US STRONGER AND THEY WILL IN FACT OVER TIME MITIGATE SOME OF THE CHALLENGES, WHETHER ECONOMIC CHALLENGES AT HOME OR SECURITY CHALLENGES ABROAD OR AT HOME.

I THINK OUR PARTNERSHIP SHOULD BE SOMETHING THAT WE CONSCIOUSLY FOCUS ON STRENGTHENING, AND THAT'S WHY I'M HERE IN ARIZONA AND I HAVE TO TELL YOU I HAVE HAD NOTHING BUT THE WARMEST AND MOST ENTHUSIASTIC RECEPTION FROM TOP TO BOTTOM.

I WAS VERY PRIVILEGED TO BE INVITED TO THE STATE OF THE STATE ADDRESS YESTERDAY WITH ALL SORTS OF LEGISLATURES FROM THE STATE AND IT WAS A PURE DELIGHT >> THANK YOU SO MUCH FOR THAT, AND KIRSTEN, AND THANK YOU FOR COMING ON ARIZONA HORIZON.

HORIZON >> THE LATEST LOGISTICS MANAGER'S INDEX, WHICH SURVEYS THOSE INVOLVED IN SUPPLY CHAIN MANAGEMENT LOOKS TO BE STABLE SUPPLY CHAIN CONDITIONS.

WE TALK TO ROGERS, THE SUPPLY CHAIN GURU.

GOOD TO HAVE YOU.

>> GOOD TO BE WITH YOU, TED >> WHAT'S THE LOGISTIC MANAGER'S INDEX?

>> WELL, WHAT WE DO, EVERY MONTH, WE GO OUT AND THERE ARE 8 COMPONENTS TO T. AND WE SURVEY FOLKS WHO WORK IN SUPPLY CHAIN AND SAY WHAT DO YOU SEE NOW?

AND WHAT DO YOU EXPECT FOR THE TRANSPORTATION PRICING, CAPACITY UTILIZATION, AND HOUSING AND WAREHOUSE COSTS, WHAT DO YOU EXPECT IN 12 MONTHS?

IT'S FUNNY, BECAUSE BEFORE SOMETHING SHOWS UP IN THE ECONOMY OR GDP, IT GETS ON A TRUCK AND GOES IN THE WAREHOUSE AND GOES INTO INVENTORY.

SO A LITTLE BIT, WE HAVE BEEN ABLE TO SEE THE FUTURE A LITTLE BIT.

AND IT HAS BEEN AT LEAST SO FAR, WITH THE EXCEPTION OF ONE MONTH DURING THE BEGINNING OF THE PANDEMIC P. ITPANDEMIC, IT HAS BEEN VERY ACCURATE >> WITH THAT, THE REPORTS ARE SHOWING A LITTLE BIT OF GROWTH BUT A LOT OF STABILITY.

IS THAT A GOOD THING?

>> IT DEPENDS ON WHO YOU TALK TO.

I THINK IT'S A GOOD THING.

SLOW, STEADY, STABLE IS NOT A BALD WAY TO DO THE ECONOMY.

WHERE YOU HAVE LOTS OF SORT OF AMPLITUDE, BIG CURVES UP AND DOWN, THAT'S MUCH HARDER FOR PEOPLE TO DEAL WITH.

AND ONE OF THE THINGS WHERE YOU HAVE PREDICTABILITY, SLOW AND STABLE AND STEADY, THAT'S PREDICTABLE.

>> Anchor: SUPPLY CHAIN WAS ON THE HEADLINES, AND IT WAS ON EVERYONE'S LIPS FOR A WHILE BECAUSE THERE WERE SO MANY PROBLEMS AND WHAT HAPPENED TO THOSE PROBLEMS, HAVE THINGS EVENED OUT?

>> IT'S KIND OF LIKE AFTER WORLD WAR II, WE TALKED ABOUT IT BEFORE, IT TOOK AWHILE TO TURN THE FAUCETS BACK ON AND GET THINGS MOVING, AND GLOBAL SUPPLY CHAINS ARE FOR THE MOST HEELED, AND WE WERE BACK TO NORMAL.

>> FOR IN REPORT NOW, THIS COMES AFTER HOLIDAY SHOPPING.

DOES THAT IN ANY WAY, SHAPE OR FORM -- >> HOLIDAY SHOPPING WAS REALLY GOOD THIS YEAR, AND ONE OF THE THINGS THAT WE SEE, UPSTREAM ACTIVITY, SUPPLIERS, IS NOT AS STRONG AS WHAT THE CONSUMER IS.

AND WE SAW THAT DURING THE END OF THE 2020-TEENS, OR THE TRUMP ADMINISTRATION, WE SAW A HOT CONSUMER, AND FEDEX JUST MISSED THEIR EARNINGS RECENTLY AND THEY DID THE SAME THING IN BOTH SEPTEMBER AND DECEMBER OF 2018.

SO WE'RE SEEING A VERY SIMILAR THING TO ABOUT FIVE YEARS AGO.

>> INTERESTING, AND AS CHRISTMAS SHOPPING MIGHT EFFECT CERTAIN ASPECTS, WHAT ABOUT AFTER THE HOLIDAYS?

THE RESTOCKING ASPECT.

DOES THAT MESS WITH THE NUMBERS IN ANY WAY, SHAPE OR FORM?

>> NO, NOT REALLY BECAUSE WHAT HAPPENS IS, THERE'S A BUILDUP FOR THE FOURTH QUARTER AND THEN EVERYBODY KNOWS, THERE'S A COMEDOWN, AND THEN THERE'S A SLOW BUILD THROUGH THE SPRING.

SO WE GOT WAREHOUSE UTILIZATION AND PRICES, THEY ARE UP, GOOD THING?

>> WHAT THAT SAYS IS, PEOPLE ARE FILLING UP THE WAREHOUSES A LITTLE BIT, WHICH IS A GOOD THING.

IF THEY'RE TOO FULL, IT'S NOT GOOD.

BUT IT SEEMS LIKE A GOOD THING, AND THE INCREASE IS NOT THAT GREAT.

>> INVENTORY COSTS, THEY'RE UP A LITTLE BIT AS WELL?

>> WELL, THAT'S INFLATION, HOWEVER MOST INFLATION IS REALLY BECAUSE OF THE PROBLEMS WITH SUPPLY.

BUT THERE'S STILL A LITTLE BIT INFLATION BUILT IN, AND IT'S NOT A TERRIBLE THING.

IT'S NOT MUCH.

>> I KNOW YOU ALSO LOOK AT TRANSPORTATION PRICES AND COSTS.

>> TRANSPORTATION IS WAY DOWN.

>> IT LOOKS LIKE ITS DEGREESING AND WHAT'S THAT ALL ABOUT?

>> WHAT HAPPENED IS DURING THE PANDEMIC, WE WERE REALLY DRAMATICALLY TRYING TO GET STUFF INTO CONSUMER'S HOUSES.

AND SO WE THREW ALL SORTS OF TRANSPORTATION CAPACITY AT THE PROBLEM.

SO, YOU KNOW, STUFF WOULD BE AVAILABLE FOR A MINUTE OVER HERE, WE PUT IT ON A TRUCK AND TAKE IT SOMEWHERE ELSE.

BUT TRUTHFULLY, WE OVERBILLED CAPACITY DURING THE PANDEMIC AND JUST AFTER IT.

AND THERE'S A TON OF TRUCKING COMPANIES THAT HAVE BEEN REALLY BADLY HURT RECENTLY AND A LOT OF TRUCK DRIVERS THAT ARE OUT OF A JOB AS WE GO TO A MORE NORMAL TIME.

>> BUT IT SEEMS LIKE THERE'S A LOT OF CONCENTRATION ON MADE IN AMERICA AND KEEP IT CLOSER TO HOME AND NOT DEPENDING ON CHINA OR OTHER FOREIGN INTERESTS AS MUCH AS IN THE PAST.

>> ON THE MARGINS, YES, BUT NOT A LOT.

>> NOT A LOT?

>> YOU CAN'T, AND EVEN IF YOU'RE MAKING THE FINAL THING HERE IN THE U.S., WHERE ARE THE COMPONENTS GOING TO COME FROM?

WE JUST DID A STUDY, AND IT'S NOT PUBLISHED YET, BUT THE STUDY WHERE WE'RE LOOKING AT THE CHIPS ACT ON THE STOCK LEVELS OF U.S. AND CHINESE SEMICONDUCTOR COMPANIES, AND REALLY, IT'S GOOD FOR THE CHINESE COMPANIES, THE U.S. CHIPS ACT, DESIGNED TO ENCOURAGE SEMICONDUCTOR MANUFACTURING HERE, BECAUSE IF YOU NEED THE MAINLY CHIPS, IF YOU NEED A MICROPROCESSOR, YOU NEED THE LITTLE CHIPS, SO TRUTHFULLY, CHINA AND ASIA ALWAYS KIND OF GETS IN ON THE DEAL, BECAUSE LET'S SAY WE'RE SELLING MORE DRUGS, MAKING MORE HERE, THE CHEMICALS PROBABLY COME FROM CHINA.

SO AT SOME LEVEL, ALL OF THAT STUFF IS COMING USUALLY FROM SOMEWHERE ELSE.

>> DALE ROGERS, SCHOOL OF BUSINESS LOGISTIC MANAGERS INDEX, IT'S ALWAYS A PLEASURE.

THAT'S IT FOR NOW, AND I'M TED SIMON.

THANK YOU FOR JOINING US.