Speaker 1:
From the library of the New York Stock Exchange, at the corner of Wall and Broad streets in New York City, your Inside the ICE House, our podcast from Intercontinental Exchange on markets, leadership and vision in global business, the dream drivers that have made the NYSE an indispensable institution for global growth for more than 225 years.
Speaker 1:
Each week, we feature stories of those who hatch plans, create jobs, and harness the engine of capitalism right here, right now, at the NYSE, and at ICEs 12 exchanges and seven clearing houses around the world. Now, here's your host, Josh King, Head of Communications at Intercontinental Exchange.
Josh King:
There's a long standing tradition that occurs when a uniformed officer of the military visits the floor of the New York Stock Exchange. For a moment, the lights and buzz of the stock tickers and the notable calls from the designated market makers take a backseat, drowned out by applause and a standing ovation from the traders and the staff thanking a member for their service.
Josh King:
This morning, the tradition continued as we welcomed the United States Navy to ring the opening bell in honor of the more than 630,000 active and reserve US Navy sailors and Navy civilians operating around the world. The man standing atop the podium was Admiral John M. Richardson, Chief of Naval Operations, which finds him at the helm of the US Navy and a member of the joint Chiefs of Staff, advising Defense Secretary, James Mattis, and President Donald Trump.
Josh King:
I'm proud to welcome aboard Admiral Richardson inside the ICE House, here at the New York Stock exchange, right after this.
Speaker 3:
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Speaker 3:
More on Dick's Sporting Goods efforts later in the show.
Josh King:
When I was a very young man coming to work for the first day in the white house in March of 1993, the biggest obvious difference to me was that we longhaired, undisciplined campaign folk were suddenly working alongside mission driven squared away members of the United States Armed Forces who were serving a tour in the White House as military aid to the President of the United States.
Josh King:
That's right, the men and women carrying the football, or the satchel as they called it. They're meticulously chosen as the best of the best and destined to do great things. One of the Navy Aids during my tenure at 1600 Pennsylvania Avenue was a Lieutenant Commander, John Richardson, a Sub-Mariner from Virginia and a 1982 graduate of the US Naval Academy at Annapolis.
Josh King:
Today, he's Admiral John Richardson, Chief of Naval Operations, our country's top Naval officer. And when an officer arrives on the gangway of one of our vessels around the world, a bell is rung for each star in his epaulet. Today the bell ringing went the other way as Admiral Richardson launched the day's trading, ringing our bell on the exchange floor.
Josh King:
Admiral, if I had four bells, I'd ring them. Welcome aboard the ICE House, Sir.
Admiral John Richardson:
Josh, it's great to be here and great to see you again.
Josh King:
Great to see you after all these years, how's the bell ringing?
Admiral John Richardson:
I got to tell you know, I think both of us have lived life of great adventure and privilege, but there is nothing that can compete with the clap on, and the welcome that the floor gave all of us, me and the sailors that accompanied me, and then the thrill of ringing that bell and kicking off the day's trading was just something I'll never forget.
Josh King:
Intercontinental Exchange and the United States Navy have a very interesting connective tissue these days. Our former Chief Financial Officer is now the Secretary of the Navy, Secretary Spencer. Your relationship with him and how that has evolved since he's been appointed by president Trump.
Admiral John Richardson:
Well, Secretary Spencer's my boss, he's the Secretary of the Navy. And boy, I'll tell you, we could not ask for a better boss. I could not ask for a better boss, the Navy could not ask for a better secretary. Secretary Spencer has come in with all of the energy and creativity that you know well here in the ICE House, brought all that to the Navy, and boy, we are hanging on because we're moving out fast.
Josh King:
The CNO travels around the world all the time. We're going to talk about one of your recent trips in a few minutes, but what brings you to New York and this region today?
Admiral John Richardson:
Well, it's a very special day for us. We're here to commemorate the 75th anniversary, the commissioning of the USS Intrepid, an aircraft carrier that got its start at World War II. Not only is the 75th anniversary a big milestone, but on board today will be some of the sailors that were there at the commissioning, plank owners we call them. And so to meet those World War II Vets, and to be able to recognize them appropriately for their lifetime of service in World War II in sense, is going to really be a special day.
Josh King:
It brings up an interesting thought of mine, because the time that I first had a connection to the Navy and attraction to it, was dad taking me down to Fall River to visit the USS Massachusetts, one of the many Naval museums that exist now today, alongside things like the Missouri and the New Jersey, and of course the USS Arizona in Pearl Harbor. The role that these monuments like the Intrepid and these other ships play in continuing to tell the story of the Navy, and also recruit the next generation of sailors and officers.
Admiral John Richardson:
Well, I think you can go on these battleships, like the Massachusetts, aircraft carriers like the Intrepid, submarines, and some cities around the country, and if you've got this inkling of maybe I want to go to sea, maybe I want to give this a try, or what was that like? What is life like to live on board a ship like that? By virtue of being able to go on board, walk the passageways, go up and down the ladders, get up to the bridge and see what all of those sailors saw, it really allows your imagination to come to life. You can almost see these famous times in our history unfold before your eyes in your imagination.
Josh King:
My kids spent a night on the rack on the USS New Jersey down in Camden. I'm still working on it, John, but I may be hitting you up for a commission later on in about five or six years.
Admiral John Richardson:
We'll take any King.
Josh King:
Thank you. Thank you, Admiral.
Admiral John Richardson:
Any member of your family.
Josh King:
Look, I mentioned that your career intersected with mine for a little bit, but can you share for our listeners how a Navy career tracking for CNO begins, progresses and reaches this point? Most of your time on ships is spent under water.
Admiral John Richardson:
Well, I'll tell you, yeah, because I chose submarining, but as you enter in, you mentioned, I came through to the Navy through the Naval Academy, but there were other commissioning sources. And then of course, there was all of our sailors who just enlist and come through our recruit training center up in Great Lakes. And so you come on board, you go through your initial training and then you pick some kind of a specialty, and we have a tremendous variety of career fields, if you will, that you can choose from in the Navy. A lot of options for you. I chose submarining. A lot of people choose Naval Aviation. You know, the best aviators are Naval aviators that to get to land on the aircraft carrier and do maritime patrol.
Admiral John Richardson:
You could be a surface warfare officer and drive ships like the modern version of the battleships cruisers and destroyers. You can be an information warrior these days. So now we're getting into cyber warfare and information warfare, a big new part of our business. And so all sorts of trades that you could come in. And then your career progresses through alternating times at sea, where you're attached to a ship, or a squad, or an operating unit. And then times ashore, where you get to take a break from going to sea, connect with your family, and then those sorts of things.
Admiral John Richardson:
And then you just kind of do that, you get more and more responsibility through your career, get to do get great things like lead our sailors, command ships, those sorts of things.
Josh King:
And education and training never stops. One of your detours was the Massachusetts Institute of Technology.
Admiral John Richardson:
Right. No, in fact, we pride ourselves in the Navy, everybody, all of our sailors and civilians, being a learning organization. And going back to Secretary Spencer, he has really made this a cornerstone of his time as the Secretary of the Navy that we are learning every day. We want to be better every single day at protecting America, promoting our prosperity, continuing to promote our influence around the world. So every day we're getting better.
Josh King:
Maybe, Admiral, just because I know that one of your toughest deployments involves carrying a leather briefcase all over the world, can you reflect on one of those particular jobs your tour is a military aide, what it taught you and how that role has changed with technology in the times?
Admiral John Richardson:
I think the fundamentals of the job are, there's a lot more that is consistent than has changed. And so the technology, in terms of executing things, will always change. And we want to make sure that our sailors, no matter what job they're in, have the very best technology. We never want to send our teams into a fair fight, we want them to have the very best. But the fundamentals and the things, particularly the time that we spent together at the White House, what you take away from that is clearly a deep sense of what the nation stands for.
Admiral John Richardson:
And here you are working for the President of the United States, the most powerful person in the world, and it's just a privilege to be able to support the President that directly, and to observe how decisions come together, those sorts of things. There is no way to put any kind of price on experience like that.
Josh King:
I mean, connecting the dots, some of those meetings that you must remember, the kids on one side of the room and the new appointees at the other side of the room, the military office, the cabinet departments, and you saw this sausage actually getting made real time. And you have your mission, but you have this incredible window, and every administration is different and conducts business at the White House differently. But a perspective like you had must inform a lot of what you do today.
Admiral John Richardson:
Absolutely. I mean, it puts so much in perspective and it allows you to be that much more effective, I think, in supporting the Secretary of Defense, Secretary of the Navy, the President today, which is really what my job is all about.
Josh King:
A Navy Officer Admiral has to be part historian, and the books in libraries like this are filled with tracts about how this country was built on trade. We're blocks away from, where so much of American trade had its genesis, and trade happens on the high seas. Tell us about the Navy's ties to commerce and how your operations protect economic stability. We all remember the story of the Maersk Alabama and Captain Phillips.
Admiral John Richardson:
Right, which is one kind of a security event. But I would say if you zoom out a little bit, Josh, one thing I learned today was that the Stock Exchange is 226 years old. And you know, the United States Navy is about 242 years old. So we got our start about at the same time, about the same time the nation was getting started, the nation very, very young at that time. And the Navy was stood up first and foremost to protect American commerce.
Admiral John Richardson:
And so our first missions were overseas in the Strait of Gibraltar, protecting trade from the Barbary pirates at the time. And you fast forward 242 years from those times, and we are out doing that. The United States is a global nation, we have global interest, global trade interests. And so we have a global Navy that's forward deployed, protecting those sea lines of communication around the world.
Josh King:
The slacks.
Admiral John Richardson:
The Slacks, and today about 90% of the world's trade travels on the seas, about 99% of the, you mentioned technology, a lot of trade is done electronically right now around the world. 99% of that ocean runs on undersea cables.
Josh King:
Yeah, I want to get to that.
Admiral John Richardson:
So it is a very dynamic maritime environment
Josh King:
In our education courses we learn about hegemony of the seas and the sea lines of communication and territorial ambitions that various countries have. So I want to do a quick little run around the world, because we are attuned to recent news and ship geeks like me watched Putin's naval parade in St. Petersburg a few weeks ago, maybe with a bit of envy, new ships coming online, their fighters buzz our vessels. What threat does the Russian Navy pose today?
Admiral John Richardson:
There is this re-emerging competition, and the national defense strategy, the Secretary Matt, makes that very clear that we're back into sort of great power competition, particularly with China and then also with Russia. And so as Russia manifests this competition, particularly in influence, the maritime domain pushing out from your shores eventually becomes a big part of that. And so you're seeing Russia and China now, pushing out from their shores. Russia never really stopped, particularly in the undersea domain, and so we're seeing that challenge surge again.
Josh King:
A few weeks ago, the sea trials of China's first domestically constructed aircraft carrier have sparked this fresh debate, or talk, discussion about Chinese Naval power. Much of the focus on the Sino US relationship has been about China and President Trump's about trade, and President Trump's relationship with the president G. And yet we know about China's ambitions in the South China Sea.
Admiral John Richardson:
Well, about 33% of the world's trade goes through the south China Sea. That was a very important body of water. And the United States Navy has been in the south China Sea pretty much consistently, same force levels, consistent posture, for seven decades. And our business there is to advocate for free and open rules-based behavior on the seas. And this is the approach that has allowed the economies of the world, but particularly the economies of Asia, to just absolutely explode in the past couple of decades.
Admiral John Richardson:
And so we believe that this rules-based approach, we call it the global commons, everybody should have common access, flat playing field here, level playing field, to allow everybody to have the opportunity to prosper. And so we're going to continue to be there.
Josh King:
Let's look inward for a second, Admiral Richardson, a number of accidents involving the US Pacific fleet. Had you take a long look at their root causes, what did you find out, and what's the Navy doing about it?
Admiral John Richardson:
Well, we found out that the minute you take your eye off the formality and the rigor of making sure you get the appropriate training, that you get the examination, or the certification to validate that training has been effective, and only then after that is done, that you go forward on mission. If you allow the mission to take priority and you start moving too fast, then that'll catch up with you.
Admiral John Richardson:
So we're now well down the road towards corrective action in that, and around the world, but particularly in the Pacific fleet, Admiral Aquilino out there in the command of the Pacific Fleet, Admiral Sawyer in command of the seventh fleet, have re instituted that rigor. They're being very rigorous about that, and we're seeing readiness of the United States Navy improving around the war world. So we're stepping up to this game of great power competition.
Josh King:
We mentioned that we are at the New York Stock Exchange and the market is now open and trades are flowing across the world, sometimes through satellites, as we've mentioned, and sometimes through undersea cables. 99% of web data rides on undersea cables on the sea floor, and mean while it's estimated, Admiral, that by 2020, 30 billion devices will be connected by the internet of things. What's the Navy's role in keeping up with the ever-changing advancements in technology?
Admiral John Richardson:
This is a big challenge, and I think it's a challenge for any institution like the Stock Exchange, like the Navy, that has a long legacy. And we bring with us legacy tradition, we bring with us a tremendous amount of legacy technology. We're kind of a capital intensive force, lots of ships, aircraft, those sorts of things. But you don't want to get so locked into your traditions and your current state of affairs that you become disrupted in the future. And the Stock Exchange is full of examples where that has happened.
Admiral John Richardson:
And so we're always mindful that even as we want to garner the best that our traditions give us, we've got to keep an eye on the future, the horizon, so that we don't miss a trick, they don't miss a technology. As I said, we want to get the best tools into the hands of our sailors first, so that they always have that upper hand when they go into a fight.
Josh King:
Speaking of the future and what is over the horizon as we look across the seas, after the break, we'll talk with Admiral Richardson about what's ahead for the Navy and his path to becoming a Senior Naval Officer and his advice for future leaders. That's right after this.
Speaker 3:
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Speaker 3:
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Josh King:
Welcome back. Today, a special guest joins us in the ICE House, Admiral John Richardson, Chief of Naval Operations, United States Navy.
Josh King:
Admiral, in March President Trump signed a $1.3 trillion budget agreement for the Pentagon's base budget and overseas counterinsurgency operations. According to the Wall Street Journal, and I quote, "The budget also allots the US Navy 23.8 billion to procure 14 Navy ships, including funding for one aircraft carrier, two guided missile destroyers, and two submarines."
Josh King:
Let's take a listen to Defense Secretary, Jim Mattis, on the budget agreement.
Jim Mattis:
Well, thank you, Mr. President. Ladies and gentlemen, in 1790 in George Washington's first annual address to Congress, he stated, "To be prepared for war is one of the most effective means of preserving the peace." As the president noted today, we received the largest military budget in history, reversing many years of decline and unpredictable funding. And together we are going to make our military stronger than ever.
Josh King:
So on my various trips to Bath, Maine, Admiral, I look at the iron works, and I saw that the USS Michael Monsoor had finally left its birth, headed out for sea trials. I see CVNs up to 92 are on the horizon, but we've got the Ford, the Kennedy and the Enterprise at various stages of getting ready for deployment. Your quick state of the Navy speech.
Admiral John Richardson:
Well. I'm very, very optimistic about the state of the Navy right now. And so today's ships, the ships that are already commissioned out operating, they have the best trained, best motivated sailors in the world on them. Nobody wants to take us on. We're out there doing their job, they know it exquisitely well. And to the point about the future that we touched on just a little bit, the future is as bright as ever as well.
Admiral John Richardson:
And thanks to the support of the President in Congress, we do have the funding required to grow the Navy so that we can meet our responsibilities to the nation. That's really all that we want to do. And then we want to also ensure and reassure the American public that we are going to take all of those resources and spend them extremely wisely so that the United States of America and the American people get the absolute most Navy for the investment that they're putting into us.
Josh King:
Talking about the men and women of the United States Navy, today is turnover parade in Annapolis. What leadership advice do you have for the class of 2022?
Admiral John Richardson:
I'll tell you what, it's a great question. And my advice, I think, would be very, very simple. If I could just maybe give three points of advice. One is, as you get through, and you go out, and you get the opportunity to be in the Navy, do your job. Know your job, become an expert in your job. Do your job, don't worry about anybody else's, they're going to do their job, so just own that position that you get and do the very best you can do it. Do it better every single day. So one is just know and do your job.
Admiral John Richardson:
Two is, particularly, the Navy is a leadership factory. And before you know it, you are going to be in a leadership position. And as soon as you're in a leadership position, you must consider your team before yourself. And so condition yourself now to think of your shipmates before yourself and every, every situation and that'll help you out a great deal.
Admiral John Richardson:
And then the third point of advice is just be a good person. Be a person of integrity, a person of character, a person that the American people would be proud to see in uniform. And if you practice those three things, I think you've got a terrific future.
Josh King:
Admiral, when I worked with you 25 years ago, you were observing, keeping your eyes out, but your job didn't demand that you speak up a lot in meetings, or take over the meetings, you are more of a listener and observer. But as the CNO in social media, you have a sizable following on Facebook, Instagram and Twitter. You're out there talking a lot, recapping your visits around the world.
Josh King:
How has the rise of social media shaped your current position, and the military as a whole, and you as a person, who uses different channels to speak out and lead?
Admiral John Richardson:
Yeah. Well, I tell you, leadership is about communication. And so the rise of social media just provides you so many more opportunities to communicate with your team, and particularly when your team is worldwide. And I can't be in physical contact with them all the time, using every possible channel to not only talk to them, but even more important, to get an opportunity to hear what's on their minds and respond to that feedback. Social media has been a real great benefit in that regard.
Speaker 6:
Yes, it is just a game, but a game that epitomizes everything they're here for.
Speaker 7:
It's the only game that everyone's playing in it. They're willing to die for everyone who's watching it.
Speaker 6:
Since 1890, the Army Navy game has embodied the timeless commitment of a group of young men and women to the nation and the ideals that both academies serve.
Josh King:
One of the Twitter accounts I follow is Navy Football and Navy Equipment. The mid shipments start their season on September 1st. Years and years and years, I watched the Army Navy game, I see Navy winning, I'm so pleased the last two have been difficult. And I also thought for years and years, you were winning the uniform game, the special spray painted helmet, army comes up with this 10th mountain division, all white gig, they look hot in the snow. What's Navy going to do this year?
Admiral John Richardson:
Well, we're going to win. I mean, simply put. I was just up at Fort Drum with the President when he signed the NDAA, and I'll tell you what, you just got to hand it to the 10th mountain division as a unit that has a tremendous amount of history of bravery and-
Josh King:
Pando-commandos.
Admiral John Richardson:
Yeah. So as they climb to glory, I have nothing but the very best and most respect for them. But having said all that, the two year winning streak comes to an end this year, and we'll let the uniform sort of settle down. But the score is what I'm really interested in.
Josh King:
Other one big piece of news this spring and summer, Admiral, Tom Cruise is on set with his cast filming Top Gun 2. Back when you and I were in college, it was a huge recruiting tool for the United States Navy. What's DOD liaison office doing with the production to make sure this one is going to get the next round of officers and gentlemen?
Admiral John Richardson:
Well, I'll tell you what, these do have powerful drawing influence, don't they?
Josh King:
Yes, they do.
Admiral John Richardson:
So, you know, whether it's Hunt for Red October, whether it's Top Gun, you know, there's another-
Josh King:
Final Countdown.
Admiral John Richardson:
All of those things.
Josh King:
Not appreciated enough.
Admiral John Richardson:
Yeah. And so, yeah, we look forward to the movie coming out. We're involved with it just like we were at the original. And boy, I'll tell you, you get a bird's eye view of Naval aviation, that is a wild ride. If you want to do something that takes you to the edge of your limits and really be out there, come on in and be a Naval aviator.
Josh King:
Final question. Talking about Naval aviators, one of your Naval brethren, John McCain, also his father, the namesake vessel, that was in one of the accidents, Senator McCain, such a long service to this country. You are the recipient of the Stockdale Award for Inspirational Leadership, you understand what he represents, what Stockdale represents. As we wrap up here, the lessons that we get from our fathers, from our predecessors to guide us into the future.
Admiral John Richardson:
Well, I'll tell you what, you mentioned the USS McCain and Secretary Spencer recently went out to Japan and did a renaming ceremony. It's still the John S. McCain, but did it so that the Senator was also part of the McCain family that was part of the namesake for the ship. And that was a clear recognition of the deep level of service and commitment that Senator McCain has for his country.
Admiral John Richardson:
I'll tell you what, when he climbed into that aircraft so many years ago and went off to do his mission, he had no idea that it would be years and years of captivity before he came home again. It was just his commitment to his oath of office that put him in that aircraft, that sustained him through those years of confinement and torture, and brought him back and with the mindset to continue service.
Admiral John Richardson:
And so you've really got to just look to heroes like Admiral Stockdale, like Senator McCain, and draw inspiration from these people as we face a future that is uncertain and could demand great things from us.
Admiral John Richardson:
And so, as we think about Senator McCain and the entire McCain family, speaking on behalf of the entire United States Navy, our thoughts and prayers are with him and his family for a full recovery, and we look forward to seeing him again in Washington, DC.
Josh King:
Well said, Admiral, and shared by so many millions of Americans. Thank you.
Josh King:
And Admiral Richardson, I am sustained and admire you, and your are one of my heroes. Thanks very much for joining us Inside the ICE House.
Admiral John Richardson:
Josh, great to be with you again.
Josh King:
That's our conversation for this week. Our guest was Admiral John Richardson, Chief of Naval Operations of the United States Navy.
Josh King:
If you like what you heard, please rate us on iTunes so other folks know where to find us. And if you've got a comment or question you'd like one of our experts to tackle in a future show, email us at [email protected], or tweet at us at NYSC. Our show is produced by Theresa DeLuca and commander, Ian Wolff, with production assistance from Ken Abels, Stephen Portner, and Lizette Wong.
Josh King:
I'm Josh King, your host, signing off from the library of the New York Stock Exchange. Thanks for listening. Go Navy, beat Army.
