Speaker 1: Now from our nation's capital. This is Floomberg Sound On.
Speaker 1: For too long, we've talked about having the best economy
Speaker 1: in the world. We've talked about as certain American leadership
Speaker 1: around the world. Now we're finally getting it done. When
Speaker 1: you pass good legislation, you get good results. We have
Speaker 1: a bill miss name the Inflation Reduction at Bloomberg Sound
Speaker 1: On Politics, Policy and Perspective from DC's top name. I
Speaker 1: can imagine how much it brings shutters to Joe Biden's
Speaker 1: mind to imagine something like this going on. What union
Speaker 1: is going to say no to him? I mean, Joe Biden,
Speaker 1: is Mr You Schloomberg Sound On with Joe Matthew on
Speaker 1: Bloomberg Radio. President Biden celebrates democrats inflation legislation even as
Speaker 1: inflation heats up and the markets fall down. Welcome to
Speaker 1: the fastest hour in politics. With a sunny day on
Speaker 1: the South Lawn today and a down day as you've
Speaker 1: been hearing on Wall Street. We'll talk about the optics
Speaker 1: today at the White House and how prices will in
Speaker 1: the mid terms with Greg Valier, chief policy strategist at
Speaker 1: a g F Investments. Joe Manchin's deal to speed up
Speaker 1: fossil fuel permitting is outraging many Democrats, But how does
Speaker 1: it actually work and what could it mean for prices
Speaker 1: this winter. We'll discuss with Frank Maisano at Bracewell our
Speaker 1: signature panel in place. Bloomberg Politics contributors Jeannie Chantano and
Speaker 1: Rick Davis are with us for the hour, and we
Speaker 1: start with the lead on Wall Street, worst day since
Speaker 1: June of thanks to that same inflation data. Here to
Speaker 1: walk us through the carnage is Charlie, Thank very much,
Speaker 1: Joe Matthew CPI Tuesday steep losses across the board. In fact,
Speaker 1: every single stock in the Nanostack one index down today.
Speaker 1: That index plunged five and a half percent. By the
Speaker 1: time it was all over. At the close, we were
Speaker 1: at or near the lows of the day. SMP down
Speaker 1: one hundred seventy seven to decline there of four point
Speaker 1: three percent. The Dow was down one thousand, two hundred
Speaker 1: seventy six points a drop There are three point nine percent,
Speaker 1: the Nanostack Compositive Index down sixty two, a drop of
Speaker 1: five point two percent. The two year yield now at
Speaker 1: three point seven five percent, ten years at three point
Speaker 1: four percent. Spot Gold up twenty three cents. The ounce
Speaker 1: to two right now West Texas enemy to AC crew
Speaker 1: tumbled five tenths of one percent one a barrel. So
Speaker 1: it was a broad based sell off again, as Joe mentioned,
Speaker 1: worst day in more than two years, after hotter than
Speaker 1: expected inflation data fueled bets on a jumbo hike by
Speaker 1: the Federal Reserve next week. I'm Charlie Pelletteatjo Matthew was
Speaker 1: a Bloomberg business flash. Charlie, thank you. So that's the
Speaker 1: backdrop to the celebration today on the South Lawn. Talk
Speaker 1: about timing. This is just hours after the CPI came out.
Speaker 1: Of course, they didn't know what this number was going
Speaker 1: to be when they planned this. Thousands of people were
Speaker 1: there at the White House to celebrate passage of Remember
Speaker 1: the Inflation Reduction Act the i R. A President spoke
Speaker 1: on a stage today with a wireless mike, wearing shirt
Speaker 1: sleeves at the aviators on and he called out Republicans
Speaker 1: for not supporting the bill. Here he is Republicans that
Speaker 1: could have and should have joined us on this bill
Speaker 1: as well. After all, this bill cut costs for families,
Speaker 1: help reduce inflation. At the kitchen table because that's where
Speaker 1: they look at how much of the monthly bills and
Speaker 1: how much do they have to pay out for the necessities,
Speaker 1: And it gave them this a little more breathing room
Speaker 1: with My dad would say, of course, they are looking
Speaker 1: at those bills and inflation, as we learned this morning,
Speaker 1: is running hotter than expected right now, despite the efforts
Speaker 1: of the Fed. Joining us with his thoughts as we
Speaker 1: barrel down the shoot towards the mid terms. Here is
Speaker 1: Greg Valier back with US, a g F Investments chief
Speaker 1: US policy strategist. Greg, what what timing here? I'm assuming
Speaker 1: they didn't plan to coincide this unless they were rolling
Speaker 1: the dice on celebrating, you know, the first CPI to
Speaker 1: show to show a real drop here. How does that
Speaker 1: resonate across the country. It's such a terrible, terrible buzz kill.
Speaker 1: What can you say, almost at a loss for words
Speaker 1: over an event like this. Uh, the Fed obviously has
Speaker 1: to get really aggressive now. Uh basis points later this
Speaker 1: month is a guarantee. There's a minority view that it
Speaker 1: could be a hundred basis points, which I doubt, and
Speaker 1: then another couple of fifties before the end of the year.
Speaker 1: So we've got a lot of upside on yields. Officially
Speaker 1: a buzz kill called by Greg Valier the headline at
Speaker 1: the terminal, Greg, this is when investors are reading Biden's
Speaker 1: plan to celebrate economy fizzles with inflation roaring. This was
Speaker 1: supposed to be kind of a pivot and messaging here
Speaker 1: to move away from the ultra magas stuff, which got
Speaker 1: a lot of people upset. Whether it ends up having
Speaker 1: a positive impact in the long term. It was time
Speaker 1: to start celebrating the accomplishments, and I assume the White
Speaker 1: House was hoping there would be data to go along
Speaker 1: with it. What do you make of this, this whole
Speaker 1: celebration today. Yeah, well they couldn't call it off, but
Speaker 1: that probably would have looked bad. And you know, ironically,
Speaker 1: there is some good stuff out there. I think what's
Speaker 1: happened in Ukraine is just remark of what a great,
Speaker 1: great story that is. And the labor market is really strong.
Speaker 1: We don't have enough workers. But this inflation story does
Speaker 1: not play into the Biden narrative. It plays under the
Speaker 1: Republican narrative that we spent too much damn money. So
Speaker 1: how do you take this on the road? I mean,
Speaker 1: this was the sort of the launch of this, uh
Speaker 1: this this line of campaigning, right and the optics that
Speaker 1: came with it. Joe Biden wants to go out there
Speaker 1: and say I'm actually I told you I would do it,
Speaker 1: and I'm fixing inflation. It's it's just not gonna what's
Speaker 1: the al saying that that that dog won't hunt? I mean,
Speaker 1: there's no rationale for saying something like that. I mean,
Speaker 1: gasoline prices clearly are down. That's what I was going
Speaker 1: to point to, ninety days of lower gas prices. That's
Speaker 1: worth something, right, and he will he'll point to that.
Speaker 1: But food is not budged. Food is still a real problem,
Speaker 1: and other things are inflationary as well. And now we
Speaker 1: might have a railroad strike, so there are still things
Speaker 1: that I think would argue that inflation will stay high.
Speaker 1: That The main problem I would argue is that workers
Speaker 1: who see an inflation rate of eight or nine percent
Speaker 1: in the UK, they want some of that. They want
Speaker 1: increases at that level, and that's going to be really contentious.
Speaker 1: You mentioned a possible rail strike. This is a really
Speaker 1: big deal and it's snuck up on a lot of
Speaker 1: people here with the deadline on Friday. Now there are
Speaker 1: two out of a dozen unions that have yet to
Speaker 1: come to terms. Here. Karine John Pierre, the Press secretary
Speaker 1: at the White House, was asked about it because we
Speaker 1: know now that members of the administration are are personally involved,
Speaker 1: including of course our Labor Secretary Marty Walsh. People to
Speaker 1: judge the Transportation Secretary. Here's what Karine John Pierre was
Speaker 1: messaging today. We have made crystal clear to the interested
Speaker 1: parties the harm that American families, businesses, and farmers and
Speaker 1: communities would experience if they were not to reach a resolution.
Speaker 1: What's the line that the administration is going to use here?
Speaker 1: Should it be Congress write some legislation to deal with us,
Speaker 1: don't look at us. Well, the President has already used
Speaker 1: a sixty day cooling off period. He doesn't have the
Speaker 1: ability to do another one, So it would have to
Speaker 1: be Congress. I don't see that happening. Maybe down the road,
Speaker 1: but I don't see an imminent move by Congress to
Speaker 1: do anything. So unless Marty Walsh can pull a rabbit
Speaker 1: out of his hat, and we can only assume that
Speaker 1: is still a possibility before Friday, give us a sense
Speaker 1: of what that means. For the economy here, this is
Speaker 1: a massive interruption. Yeah, there's two big stories here. One
Speaker 1: is commuters and a lot of big Northeastern cities may
Speaker 1: have problems getting to work, and a lot of goods
Speaker 1: will be delayed, especially coal. So as we start the winter,
Speaker 1: having a gridlock in the Cole area is not a
Speaker 1: real good story. Maybe another month of data. Is the
Speaker 1: White House data dependent? Greg? Yeah, I think so. Maybe
Speaker 1: we got a good number. Maybe the economy will show
Speaker 1: some signs of growth. But again, this this is a
Speaker 1: clear tobacco. It's a really bad day. And you know,
Speaker 1: of all the people who have been damaged, I put
Speaker 1: Buddha Judge high on the list. He had a horrible
Speaker 1: summer with flight delays, flight cancelation. Now he's got his
Speaker 1: fingerprints on the railroad story about that, Greg Valiere, a
Speaker 1: great conversation, and thank you for getting us set up
Speaker 1: here on the fastest hour in politics. We need to
Speaker 1: assemble the panel early because we want to get right
Speaker 1: to it with Rick and Genie Gregg. Thank you our
Speaker 1: Bloomberg Politics contributors, Jeanie Schanzano and Rick Davis. Give me
Speaker 1: a sense, Genie of of how that played for you.
Speaker 1: Today watching the President out there on the lawn, and
Speaker 1: I want to just pull everybody in here, because it
Speaker 1: was late afternoon at the White House, just as the
Speaker 1: Dow Industrial Average was extending losses, you know, beyond a
Speaker 1: thousand points. Right around that time of day, the markets
Speaker 1: in a panic over the very same topic that the
Speaker 1: President was set to discuss, and that of course is inflation.
Speaker 1: But the distance, the distance from Wall Street to Washington
Speaker 1: was on full display here as we heard these sounds
Speaker 1: across the alf long. Let's listen. Just yes, name James Taylor.
Speaker 1: You yeah, the trademark hat on the brimmed hat, brand
Speaker 1: new pair of boots for the occasion. He kicked things
Speaker 1: off with a little fire and rain. The White House
Speaker 1: program for the event refers to him as a Presidential
Speaker 1: Medal of Freedom recipient and a member of the Rock
Speaker 1: and Roll Hall of Fame. That's like a step away
Speaker 1: from the Ways and Means Committee. So why not? And
Speaker 1: I'm actually well, I'm still not sure exactly, Jeanie Chanzano,
Speaker 1: is that the definition of tone deaf to have a
Speaker 1: party on this on the lawn with a high priced
Speaker 1: talent to come and sing to you following a CP
Speaker 1: I like we saw this morning. You know, I can
Speaker 1: never say it's tone deaf listening to James Taylor, a
Speaker 1: huge fan. Um. You know, there's a couple of unfortunate things.
Speaker 1: Number one, UM, the fact that the bill was named
Speaker 1: an inflation Reduction Act. Um. It's I keep in an
Speaker 1: infrastructure bill myself because it fits their definition of a
Speaker 1: soft infrastructure bill. And there's wonderful things in this bill
Speaker 1: that should be highlighted. The reduction of greenhouse gas emissions. Um.
Speaker 1: If you look at the lowering of prescription drug costs,
Speaker 1: a lowing health insurance costs, energy costs. So there are
Speaker 1: wonderful things to celebrate. It was a huge achievement. But
Speaker 1: I think for me, when we look at what the
Speaker 1: Press Secretary had to say today, they've got to be
Speaker 1: able to message this properly. The reality is Americans won't
Speaker 1: feel the benefits of this, except in the case of
Speaker 1: prescription drugs, maybe in lower health insurance for a while.
Speaker 1: And they have to be honest about that. And so, yes,
Speaker 1: James Taylor is fine, they deserve a victory lap, but
Speaker 1: they've got to be honest about the real pain people
Speaker 1: are feeling now and the fact that they are willing
Speaker 1: to put aside their short term political gains for long
Speaker 1: term political help to the American public, regardless of what
Speaker 1: happens in the midterms. That should be the message. I'm
Speaker 1: I'm very curious here from Rick on this one. I mean,
Speaker 1: I don't know, you have James Taylor play inside for
Speaker 1: the v I P. S Later as something, Rick, I mean,
Speaker 1: it just it had this. It had the smacking of,
Speaker 1: you know, a sort of rich guy's barbecue with the
Speaker 1: high price talent talking about inflation when this is a
Speaker 1: bill that's planting seeds. Maybe you do have a celebration
Speaker 1: with James Taylor in a year when you have you know,
Speaker 1: nine months of lower prices or something like that. How
Speaker 1: does this play for you? You know, this is the
Speaker 1: biggest blind spot that this administration has is their ability
Speaker 1: to execute. One year ago, they were withdrawing from Afghanistan,
Speaker 1: and it was a disaster. I don't think anyone would
Speaker 1: doubt that they wanted to reduce the troops in Afghanistan,
Speaker 1: and many people were even for the withdrawal, but nobody
Speaker 1: wanted to do it in the haphazard fashion that this
Speaker 1: administration executed. And here we are on the morning of
Speaker 1: a CPI announcement and you're having an Inflation Reduction Act
Speaker 1: signing and you don't know what that is gonna be.
Speaker 1: They could have scheduled this thing on any day, even
Speaker 1: before or after, so somebody would have gotten in trouble
Speaker 1: and Rick Davis's office for this bit of scheduling, fire
Speaker 1: the schedulers, and you know, and and and start thinking
Speaker 1: about what's going on around you. I mean, and the
Speaker 1: fact that they got burned by the number, well, you know,
Speaker 1: everybody was a little disappointed. You can't really honestly argue
Speaker 1: with that. But let tone deafness. Yes, you have to
Speaker 1: tell them to cancel the band and take the you know,
Speaker 1: plan indoors and do it quietly at the Rose, at
Speaker 1: the Presidential Office, the Oval office. So I mean, like
Speaker 1: it's just they cannot get out of their own way.
Speaker 1: This is a ad ready to be made. Every Republican
Speaker 1: is gonna have this in near quiver. And frankly, they
Speaker 1: give back Republicans a message that was starting to dwindle,
Speaker 1: which is, oh my god, we gotta quit talking about inflation.
Speaker 1: Well not now, not now, Genie. Although this was supposed
Speaker 1: to be a messaging pivot, do they put that right
Speaker 1: back in their pocket? Or is this actually what we're
Speaker 1: gonna hear between now and November. Yeah, I mean they
Speaker 1: didn't put it back in their pocket. It's back in
Speaker 1: their pocket. That's the reality. We will hear it. They
Speaker 1: have a response to it, but they got a message
Speaker 1: appropriately JT. They call him on Cape cod and Martha's Vineyard,
Speaker 1: where gas prices I believe are still just right underneath
Speaker 1: the five dollar mark, at least on the island. The
Speaker 1: panel stays with us. Next, as Lindsey Graham drops legislation
Speaker 1: on abortion. This is Bloomberg. You're listening to Bloomberg Sound
Speaker 1: On with Joe Matthew on Bloomberg Radio. So maybe it's
Speaker 1: happening again on both sides of the aisle. Right. Joe
Speaker 1: Biden celebrates an inflation bill on the same day Inflation
Speaker 1: one's hotter than feared. Markets tank, and while Republicans could
Speaker 1: be reinforcing their message on inflation, Senator Lindsey Graham grabs
Speaker 1: the wheel with a new proposal he rolls out today
Speaker 1: for a national abortion band a ban after fifteen weeks.
Speaker 1: The senator explained why fifteen weeks I feel comfortable at
Speaker 1: fifteen weeks. The science tells us that the nerve endings
Speaker 1: are developed to the point that the unborn child feels pain.
Speaker 1: And this is what people are covering for the Republican
Speaker 1: messaging today. Let's reassemble our panel Bloomberg Politics contributors Jeanie
Speaker 1: Chanzino and Rick Davis Genie, is this as much of
Speaker 1: a gift to Democrats as what Joe Biden gave Republicans
Speaker 1: today on the South Lawn? Boy? Is it ever? The
Speaker 1: political gods they give and they take away? And here
Speaker 1: the universe there is, you know, inflations rising. It's all
Speaker 1: Republicans want to talk about. It's all they should be
Speaker 1: talking about. And he swoops in to say something that
Speaker 1: almost every Republicans just you know, decided to walk away from.
Speaker 1: And Tom Tillis had it right. I want to be
Speaker 1: talking about inflation, he said, And now I've got to
Speaker 1: talk about this. And so, you know, you scratch your
Speaker 1: head to imagine what Lindsay Graham is thinking. You know,
Speaker 1: he seems to be in a sort of a past
Speaker 1: state with this idea, uh, that this is about pro
Speaker 1: life versus pro choice, and it's not. Most voters are
Speaker 1: somewhere in the middle. And what they want Republicans to
Speaker 1: talk about now when we saw this in New York
Speaker 1: nineteen with a good candidate on the Republican side, is
Speaker 1: that they want them to say, like Mark Mulinaro up there,
Speaker 1: what are the limits? Where do you draw the line?
Speaker 1: Is it rape? Is it incest? What is it? Or
Speaker 1: are you just going to let these legislatures run them up?
Speaker 1: And that's what they should be talking about, and instead
Speaker 1: or not talking about it at all, he's trying to
Speaker 1: talk about a band. Well, let's be clear that this
Speaker 1: legislation includes exceptions for rape or incest. Uh, fifteen weeks,
Speaker 1: more stringent than bills that he has introduced in previous years.
Speaker 1: This is not the first turn for Lindsey Graham that
Speaker 1: would have made abortion illegal after twenty weeks. So this
Speaker 1: cranks it down to fifteen And we need to be
Speaker 1: honest with everyone here, as I think Lindsay Graham was
Speaker 1: today in his news conference, there's really no path for this.
Speaker 1: The bill is not likely to get very far, unless,
Speaker 1: of course, Republicans managed to get both the Senate and
Speaker 1: the House. So what's the point then, Rick, If this
Speaker 1: doesn't have a path, why mighty the waters with this
Speaker 1: messaging or is is this actually what Republican voters want
Speaker 1: to hear? You know, Republican voters like hearing this, especially
Speaker 1: pro life Republican voters. He was surrounded by women activists
Speaker 1: in this area, all of whom he's been working with
Speaker 1: for you know, three decades on this issue. You mentioned it.
Speaker 1: He's done this bill repeatedly every other year for the
Speaker 1: last twenty years since he's been the United States Center.
Speaker 1: I mean, this is not an unusual Lindsay Graham play.
Speaker 1: I mean, if anything, the only thing different this year
Speaker 1: is that he's gone exactly what you described from a
Speaker 1: twenty week band to a fifteen week band based on
Speaker 1: what he's alluding to, which is a new new level
Speaker 1: of knowledge on science. But look, this is you know,
Speaker 1: this is standard operating procedure for the vast majority of
Speaker 1: the Republican Party. So if you're Lindsay Graham and you
Speaker 1: want to continue to be seen as a major national player, uh,
Speaker 1: you're gonna actually talk about nationalizing an abortion ban? And
Speaker 1: uh been a question probably Rick would have been, what
Speaker 1: is this? How does this play with with the Republican
Speaker 1: strategist in you? Is that the speech that you wanted
Speaker 1: to give today when you could have been harpened on
Speaker 1: the CPI all morning. Yeah. No, he had to be
Speaker 1: given this speech next year after the mid terms, right,
Speaker 1: I mean, he's not running for re election. This isn't
Speaker 1: a naked political uh grab on his part to win
Speaker 1: a re election. This is just him trying to position
Speaker 1: himself as a player nationally. And the reality is whatever
Speaker 1: level of insecurity he's got, you know that he doesn't
Speaker 1: have to worry about that. He's a national player, whether
Speaker 1: he likes it or not. And there are days when
Speaker 1: he probably wishes he weren't. So yeah, this this is
Speaker 1: off message. And if you're Mitch McConnell, you're scratching your
Speaker 1: head going you know, look, Lindsay, I don't disagree what's
Speaker 1: what you're trying to accomplish, but did you have to
Speaker 1: try to do it today? Um, just like we were
Speaker 1: talking about the Biden administration being a bit tone deaf
Speaker 1: on message today. So lindsay, yeah, we we've we have
Speaker 1: found the nexus yere. White House Press Secretary Koarine Jean
Speaker 1: Pierre Genie says, in a statement that was put out
Speaker 1: on this Graham's bill is quote wildly out of step
Speaker 1: with what Americans believe unquote, um, it's it's sure difficult
Speaker 1: to quantify that. I know that Democrats think that this
Speaker 1: really is a winning issue going into November, but a
Speaker 1: lot of this is conjecture based on very few races
Speaker 1: since the Row ruling, right it is, I mean there,
Speaker 1: you know, we don't know what the impact is going
Speaker 1: to be. But what we do know is there's a
Speaker 1: big difference sitting here today in September then there was
Speaker 1: six months ago. And that difference is the jobs decision
Speaker 1: that has resonated. Whether it impacts voting in the mid term,
Speaker 1: we don't know. We know what happened in Kansas, we
Speaker 1: know what happened in New York nineteen. We know by
Speaker 1: reports there has been an increase in voter registration among women.
Speaker 1: So the potential is there for this to be an issue.
Speaker 1: And we know if we go and we talk to women,
Speaker 1: they are concerned about what this means for their ability
Speaker 1: to make decisions about their own healthcare. And that's the
Speaker 1: danger here. You know, Lindsay Graham maybe living in two,
Speaker 1: but this is two and you know, the environment has
Speaker 1: changed on this issue, and he doesn't seem to have
Speaker 1: caught up and that's by Republicans are keeping an arms
Speaker 1: distance from this today. You come at this from the
Speaker 1: other side. Senator John thun Rick says, there are a
Speaker 1: lot of Americans out there in favor of reasonable restrictions.
Speaker 1: This bill would counter Democrats messaging that Republicans want to
Speaker 1: ban all abortions. Is there some truth to that? Sure
Speaker 1: there is. I mean, you know, Lindsay has created the
Speaker 1: safe harbor for people for a long time. He's gonna
Speaker 1: put out, you know, what is deemed at least and
Speaker 1: instibate a reasonable position for a pro life member of Congress.
Speaker 1: And uh and people can retreat to that right they
Speaker 1: sail well, I I'm for the Graham bill and not
Speaker 1: getting too much trouble. Rick and Genie, they'll be back
Speaker 1: on sound on. I'm Joe Matthew. This is Bloomberg. It's
Speaker 1: a refrain that we've heard many times from President Biden
Speaker 1: over the last couple of years, even but really over
Speaker 1: the past year in which we've seen high oil and
Speaker 1: gas prices about the number of leases that big oil
Speaker 1: company's hole to explore on federal land. Here he is
Speaker 1: back in June, this idea that they don't have oil
Speaker 1: to drill and to bring up simply not true. This
Speaker 1: piece of the Republic is talking about Biden shutdown fields wrong,
Speaker 1: nine thousand leases, he says, outstanding. And so they've talked
Speaker 1: about to use it or or lose it rule and
Speaker 1: so forth. And we've explored this topic to learn that
Speaker 1: there's actually a lot more to getting a permit to
Speaker 1: drill for oil and gas, even if you've got the
Speaker 1: lease on the land. That's why Senator Joe Manchin has
Speaker 1: pushed for reform in this permitting process to speed things up,
Speaker 1: and that's outraged a lot of progressives and did not
Speaker 1: know about this deal, which came from Mansion's negotiation with
Speaker 1: Chuck Schumer on the Inflation Reduction Act, the one solebrated
Speaker 1: today at the White House. See how it all comes around.
Speaker 1: The question though, is why, in part why are some
Speaker 1: Democrats against this reform as the bill is also balanced
Speaker 1: by climate spending and incentives for more renewable energy. And
Speaker 1: that's where we start with Frank Maisano, senior principle at
Speaker 1: Brace Well back with us on Bloomberg Radio. It's great
Speaker 1: to have you here. Frank, I realized we don't have
Speaker 1: actual language in legislation, but that says a lot about
Speaker 1: where we are in this process. Right, there's no consensus
Speaker 1: on this. Yeah, absolutely, Joe, You're well, thanks for having
Speaker 1: me back, and I'm glad to talk about this because
Speaker 1: we're at a stage where we really don't know what
Speaker 1: the details will be in this. And I just set
Speaker 1: that in the context of having twelve legislative days here
Speaker 1: remaining in September, and probably less than that because they want,
Speaker 1: because these guys want to get out of their past
Speaker 1: the cr and bumped this to December, late November December
Speaker 1: and get back in campaign uh in many of their
Speaker 1: states and Congress to districts and things like that. So
Speaker 1: you know, it's a really tight schedule. It's hard to
Speaker 1: believe that they be able to come to such detailed
Speaker 1: legislation uh in in such a short time frame, especially
Speaker 1: with the kind of opposition you're seeing from progressives, which
Speaker 1: I'll get to in a minute. You know, the Republicans
Speaker 1: still aren't happy either, because you know that they've kind
Speaker 1: of been dragged along into this last minute budget deal
Speaker 1: all of a sudden, which was kind of a surprise
Speaker 1: to them. Well it's interesting you say that too, though,
Speaker 1: because the is the the other Senator from West Virginia,
Speaker 1: Shelley Moore Capital has her own bill. Joe Manson must
Speaker 1: be loving this right. It was introduced yesterday. Shelley Moore
Speaker 1: Capital backed by thirty eight of her Republican colleagues. Joe Mansion,
Speaker 1: Frank doesn't even know if he can get ten. Are
Speaker 1: they going to cancel each other out in West Virginia? Yeah?
Speaker 1: I don't think so. But you know, look, I think
Speaker 1: what you're starting to see is people recognizing that they
Speaker 1: don't have the time to do this in September, so
Speaker 1: they're starting to lay out there in aociating positions right
Speaker 1: as this. Look, this is a serious effort. It is
Speaker 1: something that is not going to go away if it
Speaker 1: passes here um, and if it misses the cr here
Speaker 1: in September, it certainly is going to be a major
Speaker 1: discussion point in any kind of lame duck budget session
Speaker 1: that would would occur that we're going to have to
Speaker 1: get to because they're gonna have to kick this into December.
Speaker 1: So it's not going away. It's something that Joe Mansion
Speaker 1: will continue to hold out. So I think what you're
Speaker 1: seeing is Shelley Moore Capital and the Republican side thinking, hey,
Speaker 1: here's what we would take, and you have on the
Speaker 1: other side progressives in their letters saying we don't want
Speaker 1: us at all, right, And I think that's a short
Speaker 1: sighted view in a sense, because the energy transition Joe
Speaker 1: doesn't happen unless we get some kind of permitting reforms.
Speaker 1: So speak to that. If this permitting reform happens, does
Speaker 1: that actually speed the process to the point where we
Speaker 1: get increased domestic production and prices move? Can can we
Speaker 1: connect those dots? I'll tell what it does. It increases
Speaker 1: the opportunity for us to build renewable projects and transmission
Speaker 1: lines that can carry that renewable energy. Right. I mean, look,
Speaker 1: the reality is the utility industry, the oil and gas
Speaker 1: industry in many cases have already moved towards cleaner and
Speaker 1: better fuel. The utility industry is a good example. They're
Speaker 1: expanding wind, they're expanding solar. We need transmission lines to
Speaker 1: move it. But the bottom line is all of these
Speaker 1: things face opposition from local communities, from activist groups, and
Speaker 1: from things like that. And so if you're going to
Speaker 1: have an energy transition as fast as progressive an environmental
Speaker 1: activists wanted to occur, you're gonna have to have some
Speaker 1: help in the permitting arena, because that's the key. Is
Speaker 1: this an issue or is this an environmental issue? In
Speaker 1: terms of the infrastructure that you're talking about. In many cases,
Speaker 1: that is a nimby issue. We don't want it in
Speaker 1: our back yard. I mean, look like there's a giant
Speaker 1: solar project in uh in Solln, California called Ivan Paw,
Speaker 1: which which I worked on individually, and you know, we
Speaker 1: had people fighting us for five or seven years on
Speaker 1: that project. Right now, we finally got over it. Right
Speaker 1: now it's operating uh and and actually doing great and
Speaker 1: helping balance the grid in California. Right with the challenges
Speaker 1: that they faced, and we we would have gotten over
Speaker 1: it faster if there would have been some sort of
Speaker 1: permiting reform that could have helped us speed that along.
Speaker 1: You would think just would have more bipartisan support. With
Speaker 1: what we've seen in Texas and in California. To your point,
Speaker 1: you couldn't have two states you know, further apart politically here.
Speaker 1: But what would it mean, Frank for this multi billion
Speaker 1: dollar Mountain Valley natural gas pipeline in West Virginia. Well,
Speaker 1: I mean, look, I think the Mountain Valley pipeline is
Speaker 1: Joe Mansion's price of admission. That's what they say process
Speaker 1: right and and look for every one Mountain Valley pipeline
Speaker 1: you have, you have hundreds of renewable projects that are
Speaker 1: need that need this type of does that to prove
Speaker 1: is the pipeline is sure thing if he gets the bill, Well, well,
Speaker 1: I mean that you know, that's what he's shooting for.
Speaker 1: Who knows what the details will be on it, but
Speaker 1: um you know again and Frankly, we will need natural
Speaker 1: gas transmission lines because natural gas is a supporter of
Speaker 1: reliability and the grid when it comes to expanding renewables, right,
Speaker 1: that's one of the reasons why we've been able to
Speaker 1: expand renewables. So natural gas is going to be a
Speaker 1: player U. It will continue to be a player as
Speaker 1: we clean it through renewable natural gas in through through
Speaker 1: hydrogen use in the future. So you know, we need
Speaker 1: this type of infrastructure, both from from the natural gas
Speaker 1: and clean natural gas side, to the to the electricity
Speaker 1: grid to developing the projects themselves. Come back and talk
Speaker 1: to us when we get some print. I enjoy the conversation.
Speaker 1: Frank Maisano with us from brace well on sound On.
Speaker 1: We'll reassemble the panel next to get their thoughts on
Speaker 1: this for a moment, and turn our attention as well
Speaker 1: to the Twitter whistleblower that made a lot of news
Speaker 1: today inside the Beltway. Another tough day for social media,
Speaker 1: big tech on Capitol Hill. That's ahead. I'm Joe Matthew.
Speaker 1: This is Bloomberg. You're listening to Bloomberg you sound on
Speaker 1: with Joe Matthew on Bloomberg Radio. It's not the only
Speaker 1: news on Twitter today, in fact, not Elon Musk this time,
Speaker 1: but a whistle blower here in Washington. We're gonna talk
Speaker 1: about that in just a moment. Yet another call for
Speaker 1: regulation on big tech and specifically on social media. Joe
Speaker 1: Matthew in Washington. Thanks for joining us on Bloomberg sound On,
Speaker 1: the fastest hour in politics as we try to keep
Speaker 1: you up to date with what's always happening at the
Speaker 1: White House. And an interesting update, a curious update here
Speaker 1: in the President's schedule late in the day as well.
Speaker 1: He's on his way to Wilmington, Delaware tonight. Strangely, you know,
Speaker 1: you don't see a lot of unannounced moves like that. Strangely,
Speaker 1: he's coming back tonight as well. Somebody asked if he
Speaker 1: kept the fawcet running a quick run to the house
Speaker 1: in Wilmington, Delaware. We don't know why yet, will let
Speaker 1: you know as we reassemble the panel. Here for an
Speaker 1: interesting turn in the news about Joe mansion. Rick Davis
Speaker 1: is with us and Jennie Chanzano. You always do wonder, Rick,
Speaker 1: you know when you get a piece of news like that,
Speaker 1: what's behind it? Donald Trump was seen stepping out of
Speaker 1: a private jet wearing golf shoes at Dallas Airport a
Speaker 1: couple of days ago as well. Yeah, I mean, what's
Speaker 1: with these two guys both having mystery trips in the
Speaker 1: same week? Is it the do o j? Is it
Speaker 1: just their own socialist calendar? I mean, what's going on
Speaker 1: in Washington? Uh? Genie, this is interesting with Joe Manchon here.
Speaker 1: Could he be the one in this case who actually,
Speaker 1: you know, he had the deal, but he's the one
Speaker 1: who ends up empty handed. And I say that knowing
Speaker 1: he got a lot in the Inflation Reduction Act. But
Speaker 1: this Permitting reform bill is being challenged by both sides. Yeah,
Speaker 1: and you know it's so fascinating because when the deal
Speaker 1: was struck who didn't think ahead that this was going
Speaker 1: to be coming down the pike. And you know, was
Speaker 1: it Joe Manchin? Was it? You know, Chuck Schumer? Was
Speaker 1: it Joe Biden? So if he is left empty handed,
Speaker 1: you've got to wonder whose fault that is. And I
Speaker 1: think Frank made a really important point to in fact,
Speaker 1: number one, there's very little time left to get this
Speaker 1: cr put together with this amount of pushback on it.
Speaker 1: And number two, the idea that permitting reform is important
Speaker 1: to get to renewable. That's a message that if that's
Speaker 1: what Chuck Schumer and Joe Biden and others believe, they
Speaker 1: should be putting putting out there, and they should have
Speaker 1: gotten Bernie Sanders and other Democrats and people who care
Speaker 1: about the environment rightly so on their side to say
Speaker 1: this is a step in the right direction. None of
Speaker 1: that seems to have happened. And so here we are
Speaker 1: again a government potentially could get shut down without a
Speaker 1: budget past and you know it's gonna be egg really
Speaker 1: in Chuck Schumer's face if this happens, Well, is it
Speaker 1: on Chuck Schumer to get this moving? Here? Rick, You've
Speaker 1: been around enough Senate deals to kind of get a
Speaker 1: sense of this. Maybe there's a noisy period like this,
Speaker 1: Maybe this bill goes once it's done in written, goes
Speaker 1: together with the Capitol Bill to create like Frank was saying,
Speaker 1: something more palatable to both sides. Yeah, you know, look,
Speaker 1: I mean you see this all the time when you're
Speaker 1: coming to the end of a cycle like this, you know,
Speaker 1: and it's September and its election year, and you have
Speaker 1: all these people running around saying, oh, this is the
Speaker 1: stuff I want to pack into the cr. Uh. You know,
Speaker 1: the President wants his stuff, you know, Joe Manson wants
Speaker 1: his quote deal payoff. But the reality is you've got
Speaker 1: to talk to the appropriators because they're the only ones
Speaker 1: that really matter in this. And everything I'm hearing is,
Speaker 1: at least from the Republican side, Richard Shelby is going
Speaker 1: to have a clean cr. He's not gonna give Biden anything,
Speaker 1: and he's not gonna give Mansion anything, and he's not
Speaker 1: gonna give any Republicans anything. He's gonna put a clean
Speaker 1: cr on the table and say vote for this. And
Speaker 1: the likelihood is if that's what he does, then that's
Speaker 1: what's going to happen. About it Uh, interesting language today,
Speaker 1: which brings us to one of the most bipartisan issues
Speaker 1: on Capitol Hill, and that is, of course, cracking down
Speaker 1: on big tech. A whistle blower hearing today of Twitter
Speaker 1: whistleblower before the Senate Judiciary Committee. This is a former
Speaker 1: executive in a self described hacker, saying that the company's
Speaker 1: years behind when handling and protecting user data that's yours.
Speaker 1: In fact, he had some pretty pretty wildlines about this. Uh.
Speaker 1: Peter Zako goes by his online profile name Mudge, and
Speaker 1: he told the committee today that the mishandling of data
Speaker 1: at Twitter could easily fall into the wrong hands, and
Speaker 1: that goes for anyone who is using the platform. Here
Speaker 1: he is, I'm here today because Twitter leadership is misleading
Speaker 1: the public, lawmakers, regg Laters, and even its own board
Speaker 1: of directors. They don't know what data they have, where
Speaker 1: it lives, or where it came from, and so unsurprisingly
Speaker 1: they can't protect it. This kind of vulnerability is not
Speaker 1: in the abstract. It's not far fetched to say that
Speaker 1: employee inside the company could take over the accounts of
Speaker 1: all of the senators in this room. How about that
Speaker 1: for a line, Rick Davis, I don't know if that
Speaker 1: brings it home for people. But a lot of senators
Speaker 1: have been licking their chops over an opportunity to crack
Speaker 1: down to regulate these websites. That they get any closer today, well,
Speaker 1: you know, I think it shows just how wild west
Speaker 1: some of this um uh internet technology is, right. I mean,
Speaker 1: like we always think of this stuff is like you know,
Speaker 1: mathematical formulas, right, all this stuff is absolutely straightforward, but
Speaker 1: it's not and and and I think the look into
Speaker 1: this is is illuminating. But at the end of the day,
Speaker 1: I mean, it's Twitter, right, It's not your bank account,
Speaker 1: it's not your so security number. Uh, you know, it's Twitter,
Speaker 1: and it was the Digital Public Square come on, right, Yeah,
Speaker 1: Well you know ask Elon musk uh no telling how
Speaker 1: he's going to change it. And so if the worst
Speaker 1: thing that happened is that we just find out that
Speaker 1: these guys are just lousy managers, it's going to add
Speaker 1: fuel to the reform movement on Capitol Health for sure.
Speaker 1: But like of all the things we've heard about being penetrated,
Speaker 1: your Twitter account should worry anybody. Well, I'll tell you what.
Speaker 1: Listen to John Kennedy, the Republican Senator from Louisiana because
Speaker 1: he's well, I mean he he spins the tail as
Speaker 1: well as anybody listen. This makes me want to stick
Speaker 1: my head and non of then this is disgusting. And
Speaker 1: we're not talking about um people that that don't understand technology.
Speaker 1: I'm talking about the board of directors, all the engineers
Speaker 1: at at Twitter, the CEO. They all knew all of this.
Speaker 1: This is very basic stuff. It's very easy to fix,
Speaker 1: except for one little problem. It costs money. Genie, We've
Speaker 1: all wanted to put our head in enough. And I
Speaker 1: think at some point, because of Twitter, he just has
Speaker 1: a special way of saying it. I just are we
Speaker 1: on the way to like a big tobacco style hearing
Speaker 1: where you've got the heads of all the social media
Speaker 1: sites all being asked, you know, difficult questions specifically about security,
Speaker 1: about national security, people's privacy and so forth. Or have
Speaker 1: they already played that tune? Is this just another hearing today?
Speaker 1: I thought this hearing was fascinating, and to me, it
Speaker 1: was much broader than Twitter. I thought that the attack
Speaker 1: was not so much on Twitter, and they do have
Speaker 1: sensitive information by the way, they have our geolocations, they
Speaker 1: have our emails associated with our accounts. A lot of
Speaker 1: personal information is housed at Twitter, and according to this whistleblower,
Speaker 1: employees have access to all of that and they haven't
Speaker 1: been able to ferret out or identify foreign you know,
Speaker 1: people who are working from the Chinese government according to
Speaker 1: the FBI and others. So that is a scary proposition.
Speaker 1: But I think even scarier is the fact when he
Speaker 1: said that our US regulators are not up to par
Speaker 1: and that Twitter, like most social media sites, is more
Speaker 1: scared of the French equivalent of the FTC than our own.
Speaker 1: And so this is a failure in my mind, of
Speaker 1: not just Twitter, or any single corporation or any single
Speaker 1: social media site, but regulation overall. Yes, there's a bipartisan consensus,
Speaker 1: and these senators can say whatever they want. Reality is,
Speaker 1: we've seen very little action on any of this, and
Speaker 1: we've all left been left vulnerable because we all have
Speaker 1: to use it to live in this world. And so
Speaker 1: that is a scary proposition. You can count the bills.
Speaker 1: There are just a number of pieces of legislation waiting
Speaker 1: in committee that that could affect some of what we're
Speaker 1: talking about here, Rick, But we can't even get a
Speaker 1: budget done right now with the mid terms and so forth.
Speaker 1: This isn't the conversation for today, is it. You know,
Speaker 1: it's an ongoing conversation. I mean, genies write there are
Speaker 1: lots of issues related to, but unrelated to, uh, this
Speaker 1: current you know, uh situation with Twitter. But I would
Speaker 1: say too, I mean, you know, the reason that there's
Speaker 1: a scarier French regulators because they pass laws that are
Speaker 1: very counter to free enterprise and entrepreneurship, right, I mean,
Speaker 1: like there's a reason there's no there's not a Twitter
Speaker 1: version in France of the kind of uh kind of
Speaker 1: unique characteristics that we're able to do. There's a reason
Speaker 1: the largest uh internet companies in the world are either
Speaker 1: here or in China. So um, it's you get what
Speaker 1: you pay for. I do think that the idea that
Speaker 1: the FTC just allows that the internet companies regulate themselves
Speaker 1: is in for a change. But the worst thing you
Speaker 1: can do is take an engine of growth like these
Speaker 1: have been for our country and the technology advances we've
Speaker 1: made them all not necessarily just Twitter, um and and
Speaker 1: put a cap on that. So I think I think
Speaker 1: that's one of the issues that Capitol Hills wrestling with,
Speaker 1: is they don't want to stifle the growth of our industry,
Speaker 1: but they also don't want to get them let them
Speaker 1: get away with unfettered uh deregulation. It is pretty amazing
Speaker 1: that this hearing takes place the same day that Elon
Speaker 1: Musk headline drops here, Genie, is this going to be
Speaker 1: an issue in twenty four It's obviously too late to
Speaker 1: be a major decider here in the midterm elections, but
Speaker 1: twenty four, especially if you've got Donald Trump or a
Speaker 1: Trump endorsed candidate running for president, it's it's gonna be
Speaker 1: a big talker. It is, and I think it's something
Speaker 1: that everybody can understand because we are all vulnerable to it.
Speaker 1: And you know, the reality is we have to both
Speaker 1: be able to create fabulous new technology and protect our
Speaker 1: national security and our privacy at the same time. It's doable,
Speaker 1: but there's got to be a will in the federal
Speaker 1: system to do that. Jennie Chanzano, when Rick Davis make
Speaker 1: up our signature panel here on sound on a great
Speaker 1: talk tonight, we covered a lot of ground here and
Speaker 1: by the way, happy primary day. This is it for
Speaker 1: primary season. Tomorrow night we'll review the results from New
Speaker 1: Hampshire Delaware and beyond on the fastest hour in politics.
Speaker 1: I'm Joe Matthew. This is Bloomberg.