Speaker 1: Now from our nation's capital. This is Bloomberg Sound on
Speaker 1: January six. Was the culmination of an attempted coup motivated
Speaker 1: by what President Trump had told them. I know why
Speaker 1: I was there, and that's because you called me there.
Speaker 1: Floomberg Sound on Politics, Policy and Perspective from DC's top name.
Speaker 1: We've forgotten what it looks like to see that attack.
Speaker 1: It was gut wrenching at the time. This is not
Speaker 1: just for history's sake. They're talking about this as an
Speaker 1: ongoing threat to democracy. Bloomberg Sound On with Joe Matthew
Speaker 1: on Bloomberg Radio. Inflation hits a new forty year high,
Speaker 1: just as President Biden touts progress at the Port of
Speaker 1: l A. Welcome to the fastest hour in politics. Welcome
Speaker 1: to Friday, with a strong reaction to the CPI dated today.
Speaker 1: My goodness from the markets and from Washington, and we'll
Speaker 1: have details ahead from Bloomberg's Eric Weiner, and we'll talk
Speaker 1: out unwinding the kinks in the supply chain. Was someone
Speaker 1: who knows a lot about it, Gene Sikora, executive director
Speaker 1: of the Port of l A, the busiest port in America. Later,
Speaker 1: the January six Committee gets inside Americans living rooms at last,
Speaker 1: did they make a difference? What happens next week? You know,
Speaker 1: we're not done. We have several more to go, and
Speaker 1: we'll have an update from Bloomberg Government's Jack Fitzpatrick, who
Speaker 1: was in the Capitol last night for some pretty dramatic moments.
Speaker 1: Analysis from the panel. Bloomberg Politics contributors Jeannie Chanzano and
Speaker 1: Rick Davis are with us for the hour. The markets
Speaker 1: say at all, I guess the hunter than expected CPI
Speaker 1: report not what anyone wanted or was apparently prepared for.
Speaker 1: And we wanted to take a deeper dive with Eric Weener,
Speaker 1: who leads Bloomberg's North American market coverage, author of What
Speaker 1: Goes Up and the Shadow Market. And it's great to
Speaker 1: have you, Eric. Are we now were in a new
Speaker 1: world at this point. A lot of people who called
Speaker 1: a peak for inflation a couple of weeks ago or
Speaker 1: throwing out their forecast right now, that's pretty much what's
Speaker 1: going on. I don't know if it's a new world
Speaker 1: or we're just figuring out what the old one. I
Speaker 1: understand American. Yeah, uh, you got consumer discretionary stocks that
Speaker 1: really got killed today, and that means that people are
Speaker 1: afraid that or the market is afraid that people aren't
Speaker 1: going to be able to spend uh and technology got
Speaker 1: hit hard, same sort of thing where people are just
Speaker 1: not going to have the amount of money that it
Speaker 1: takes to spend on goods. This recalibrates the forecast for
Speaker 1: the FED. It could. I mean, they're traders are betting
Speaker 1: that you're going to see fifty basis point hikes or
Speaker 1: half an interest rate, half an interest um basis point
Speaker 1: hike over the next three months, so through September. But
Speaker 1: they had to raise that a little bit to seventy
Speaker 1: five basis points for one of the meetings because traders
Speaker 1: are starting to expect that the Fed's going to have
Speaker 1: to get a little bit more aggressive. That's the scary part.
Speaker 1: I guess we did here. You'd here Joe Biden try
Speaker 1: to interrupt us. Just now, the President that the Port
Speaker 1: of l A today talking about this. Let's hear what
Speaker 1: he actually said. I understand Americans are anxious, and the
Speaker 1: anxious a good reason. I was raising a household when
Speaker 1: the price of gasolane rose precipitously, it was the discussion
Speaker 1: at the table. It made a difference when food prices
Speaker 1: went up. That's the word anxious, right for investors as
Speaker 1: well as consumers, that's exactly the word, and really uncertain
Speaker 1: because people thought that this was going to be over
Speaker 1: by now, or at least we'd start seeing some improvement
Speaker 1: by now, and it just keeps getting worse. Today's cp
Speaker 1: I print, as you guys pointed out, was just you know,
Speaker 1: as bad as it could possibly be. So everybody was hoping,
Speaker 1: you know, by the time we get the summer, maybe
Speaker 1: we'll start seeing some normalcy and doesn't really look that
Speaker 1: way right now. This plays into earnings of course, right
Speaker 1: that's the that's the concern right now, is that companies
Speaker 1: are not going to be able to earn as much
Speaker 1: in a higher inflationary environment that these tech companies, even
Speaker 1: though they have a lot of cash. It just it's
Speaker 1: going to cost them more to do business. But they're
Speaker 1: taking down the whole market, right, you know, people are
Speaker 1: throwing out good companies with bad companies. At some point, Eric,
Speaker 1: do we start to tell the difference. That's ultimately what happens.
Speaker 1: That there's a pattern to this to a certain extent.
Speaker 1: It never is exactly the same, but there there are
Speaker 1: threads that you can see. Basically what you're looking for
Speaker 1: is what they call capitulation, where the market just basically
Speaker 1: sort of throws up. And once that happens, and we're
Speaker 1: getting close to that, it would appear. Once that happens,
Speaker 1: you start looking at things like, well, is apple really
Speaker 1: worth you know, less than it was a few weeks ago,
Speaker 1: and then people step in and start buying uh. And
Speaker 1: it's eventually what happens is it's the quality that people
Speaker 1: look at and value that people look at, and you
Speaker 1: start going again. But there was a lot of euphoria.
Speaker 1: I mean there there is no mistaking that there was
Speaker 1: a lot of euphore you going on, and some of
Speaker 1: that has to come out and people have It's this
Speaker 1: is no surprise. People have been talking about this for
Speaker 1: a year, the idea that this has to happen. It's
Speaker 1: just now what's happening. And it's not fun when it does.
Speaker 1: Perfect voice on a daylight today. Eric quener I really
Speaker 1: appreciate it. He leads Bloomberg's North American market coverage team
Speaker 1: and the man behind the books. What goes up in
Speaker 1: the shadow market getting things rolling on the fastest hour
Speaker 1: in politics. There's the market, then there's the port that
Speaker 1: data that CPI reported just a couple of hours before,
Speaker 1: President Biden spoke at the Port of l A talking
Speaker 1: about strides made at America's busiest port. Remembering images last
Speaker 1: year of ships lined up to the horizon, President says,
Speaker 1: no more, but the port, all the ports on the
Speaker 1: West Coast are bracing for some new challenges here in
Speaker 1: the second half of the year. And we're joined by
Speaker 1: the man who runs the Port of l A right now,
Speaker 1: Director Jean Soroka. Welcome, Geen, Welcome back to big day
Speaker 1: with the President today. Do you feel like you've got
Speaker 1: this licked. It's almost a victory sounding speech, even as
Speaker 1: we got some tough inflation data this morning. From the
Speaker 1: supply chain standpoint, Joe, I'd say we're in the bottom
Speaker 1: of the fifth inning. We're past the worst, but there
Speaker 1: still is much more to do. We're focused today on
Speaker 1: getting our rail cargo moved to the interior of the country,
Speaker 1: building up our agricultural exports, and really making sure that
Speaker 1: we have certainty in this American supply chain. You're preparing
Speaker 1: for an early peak season this year, retailers stocking up
Speaker 1: on back to school other seasonal goods coming from overseas.
Speaker 1: Will that create a new batch of bottlenecks in the fall,
Speaker 1: I don't think so. We've done a lot of work
Speaker 1: here this year on bringing that backlog down. At its
Speaker 1: worst point back in January, a hundred and nine vessels
Speaker 1: were waiting outside the twin ports of southern California to
Speaker 1: begin work. Today, that's under twenty. The cargo is sitting
Speaker 1: for less time than normal, and we're pushing the cargo
Speaker 1: up quicker to the interior of the country. The landings
Speaker 1: for peaks eason will begin at the end of this month.
Speaker 1: We're already seeing a little bit of an uptick in
Speaker 1: the vessels leaving Asia coming our way. So everything is
Speaker 1: happening as we had stated it would. Why is it
Speaker 1: early this year? Folks are trying to make sure they
Speaker 1: don't get caught behind when it comes to inventory seasonal goods.
Speaker 1: They know that the transit times might need a little
Speaker 1: extra time to get to their warehouse store floors, so
Speaker 1: they're not going to take any chances. The majority of
Speaker 1: retailers have told me not only the year and holiday goods,
Speaker 1: but the back to school products, seasonal goods as well
Speaker 1: as those four fall will all be coming at the
Speaker 1: same time. So let's stretch this out a little bit
Speaker 1: and have a better line of sight on the shipment's
Speaker 1: coming in. Way. Doesn't that say you something, Gene, When
Speaker 1: the average American consumer has become an expert on the
Speaker 1: supply chain, Oh, it's like it's never been before. The
Speaker 1: spotlight is on us. But it can never be too brave.
Speaker 1: We've got to continue to approve delivery to the American consumer. Well,
Speaker 1: you know, to speak about that that leg that comes
Speaker 1: from the port. There was a lot of talk last year.
Speaker 1: One of the most concrete things the Biden administration did
Speaker 1: to unclogged supply chain issues was was make the ports
Speaker 1: of l A and Long Beach seven. Not that it
Speaker 1: was in order, but he worked with you on doing that.
Speaker 1: I wonder, Jeane, how close are you at this point? Well,
Speaker 1: we're prepared, we're open all the time, our dock workers
Speaker 1: are ready to go to work. We've had very few
Speaker 1: takers this largely private sector supply chain, and rightly so,
Speaker 1: it doesn't work the same hours that the ports do.
Speaker 1: We need more truckers on the ground to be able
Speaker 1: to work around the clock, and we still have a
Speaker 1: lower level of employment and our warehousing system that we
Speaker 1: would like. Please remember, they're about two billion square feet
Speaker 1: of warehousing from the shores of the Pacific out to
Speaker 1: the desert region of southern California, and they accommodate about
Speaker 1: one third of all of our imports here from the
Speaker 1: ports of l A and Long Beach. We've got to
Speaker 1: beat the talent up in that area, so the worker
Speaker 1: shortage remains an issue. You've got a lot of jobs
Speaker 1: to fill, and we're not immune. Nationwide, eleven point four
Speaker 1: million jobs open, even here in our supply chain and
Speaker 1: around the port. It's Adjacency's same story. We've got to
Speaker 1: do a better job to attract, recruit, and retain workers
Speaker 1: in these areas. Make it a profession once again. One
Speaker 1: of the other challenges on your horizon and all of
Speaker 1: our horizons as consumers a possible dock workers strike. Geene,
Speaker 1: Do you see that happening next month? I do not.
Speaker 1: The longshore dock workers have not gone on strike since
Speaker 1: nineteen seventy two. Yes, at this time, we've got seasoned
Speaker 1: negotiators on both sides of the table, from the Employers
Speaker 1: Association and the Longshore Union. Each understands how important these
Speaker 1: twenty nine West Coast ports are to the American economy.
Speaker 1: They account for about nine per cent of our nation's
Speaker 1: g d P. The President himself was here today, as
Speaker 1: was Labor Secretary Marty Walsh. The administration is keeping a
Speaker 1: very close watch while being so respectful of the collective
Speaker 1: bargaining process between both sides. Would like to see the
Speaker 1: Labor Secretary get involved in those negotiations, or is it
Speaker 1: not at that point. It's not at that point. But
Speaker 1: he's created some very strong relationships early on in his tenure.
Speaker 1: He started talking to both sides just after taking office.
Speaker 1: He's a well known commodity on the ground to the
Speaker 1: labor movement as well as a fairman to the employers
Speaker 1: associations that he's dealt with in the past. The right
Speaker 1: guy on the case. But they're going to give these
Speaker 1: two sides room to negotiate through the collective bargaining process.
Speaker 1: Jean Sioko, you sound energized from a day outside with
Speaker 1: the President. You've had the cameras and microphones pointed your way,
Speaker 1: but there's a storm coming from overseas. I understand what
Speaker 1: is a reopening China, a post COVID China mean for
Speaker 1: the port of l a you'll see a consistent blow
Speaker 1: of goods Joe, And unlike what some observers have reported,
Speaker 1: the central government China and the ports specifically have really
Speaker 1: prioritized that long haul cargo that which comes here to
Speaker 1: Los Angeles. We never saw the precipitous drop in goods
Speaker 1: as some had predicted. Now as we moved towards a
Speaker 1: reopening of Shanghai, it's been interesting because the port of
Speaker 1: Ningbo and neighboring Jong Sue Province is up twenty per
Speaker 1: cent stance the lockdowns winning place eleven weeks ago, and
Speaker 1: the young Shaun Deep Seaport in Shanghai is operating at
Speaker 1: about an eighty five to nine clip. Right now, the
Speaker 1: goods continue to move and we'll start to see those
Speaker 1: seasonal and year end products hitting our docks by the
Speaker 1: end of this month. As we look forward, not every
Speaker 1: factory was closed, not every trucking firm had to stop
Speaker 1: doing business. But the reopening is a positive sign, and
Speaker 1: we'll see a little bit of an uptick to catch up,
Speaker 1: but nothing that will overwhelm us. Well, he's on the
Speaker 1: front lines of the supply chain crisis. Jean Siroca, director
Speaker 1: of AMOR Erica's biggest port, the Port of l A. Jean,
Speaker 1: thank you for your time as always on Bloomberg. Always
Speaker 1: could talking with you. Joe, thank you. Coming up, we
Speaker 1: assemble the panel. Rick and Jeannie are here. Rick Davis
Speaker 1: and Jeannie Chanzano help us make sense of things on
Speaker 1: a Friday. We'll check markets and traffic on the way.
Speaker 1: Joe Matthew, this is Bloomberg. You're listening to Bloomberg. You
Speaker 1: sound on with Joe Matthew on Bloomberg Radio. So President
Speaker 1: Biden is still not making any friends on the issue
Speaker 1: of inflation, even as he discussed progress today at the
Speaker 1: Port of l A. Just echoed by Jeans Siroka right
Speaker 1: here on sound on the Larry Summers is talking a
Speaker 1: very different tune, not just about the administration but the
Speaker 1: Federal Reserve. Of course, he's been kind of ahead of
Speaker 1: the curve on this whole matter for some time, and
Speaker 1: he talked about it with David Weston on Bloomberg Wall
Speaker 1: Street Week. Listen to Larry Summers. I think the FEDS
Speaker 1: forecast from March saying that in play would be coming
Speaker 1: down to the twos by the end of the year
Speaker 1: was frankly delusional. When issued and looks even more ridiculous today.
Speaker 1: And that's the Fed that this administration is deferring to,
Speaker 1: of course, even while talking about its own attempts to
Speaker 1: lower prices, delineating evermore between the two. Let's assemble the
Speaker 1: panel on a Friday afternoon. It's always great to have
Speaker 1: Rick Davis and Jeannie Chanzano help us make sense of things.
Speaker 1: As I say, Genie, this was kind of a tough
Speaker 1: day for this White House. A lighter than expected report
Speaker 1: would have been well received. This blew the doors off
Speaker 1: right as the President was trying to execute a presidential
Speaker 1: events on inflation. Yeah, that's right, you know the emoji
Speaker 1: where the person's head pops off. Hearing Larry Summers say
Speaker 1: that they were, you know, forecasting two percent and describing
Speaker 1: as delusional and probably an understatement, and we should underscore
Speaker 1: that horrible day for this White House. This, after all,
Speaker 1: is inflation month. Let's not forget we are ten days
Speaker 1: into it. We had, you know, Jerome Powell at the
Speaker 1: White House on the hot seat, and this comes out,
Speaker 1: and the President is trying to talk about the progress
Speaker 1: they've made at the ports, but everything is up. I mean,
Speaker 1: somebody was just telling me, soup is up four, So yeah,
Speaker 1: soup Joe, do you eat a lot of soup? Soups?
Speaker 1: Apparently up? So you know, it is bad and it's
Speaker 1: getting worse for this White House. And quite frankly, the
Speaker 1: President is race right that there's a lot of anxiety.
Speaker 1: People are anxious, but that is not enough to hear
Speaker 1: from the White House, particularly in inflation month. I thought
Speaker 1: that that he was Mr. Feel your pain, Rick Davis,
Speaker 1: that he was just the man for this job. He
Speaker 1: talks about growing up in a household where gas prices
Speaker 1: were talked about at the kitchen table, as dad's up
Speaker 1: at night for crying out loud, staring at the ceiling
Speaker 1: every night. How come it's not resonating with anyone. Well,
Speaker 1: I think he's sitting at the kitchen table and he's
Speaker 1: having the same complaints that uh, you know, most family have.
Speaker 1: All gas prices are out of sorts. You know, chicken up,
Speaker 1: if you have chicken soup, it's really expensive. Um apparently so.
Speaker 1: But but I think one of the things he's not
Speaker 1: doing is saying, and here's how we're gonna fix it.
Speaker 1: We're gonna pull together as a country. You know, we're
Speaker 1: gonna see this through. Here's my five point plan to
Speaker 1: defeat you know, and and help defeat inflation and help
Speaker 1: the American economy and help the American consumer. And and
Speaker 1: that's the part that's missing. I mean, where's the beef?
Speaker 1: I mean, you're sitting at the table, you're having that conversation.
Speaker 1: You feel bad for, you know, for people. So what
Speaker 1: you're the president, You're supposed to actually been doing something
Speaker 1: about it. The beef is even more expensive, Genie, You're
Speaker 1: gonna be stuck with the chicken soup this weekend. That's
Speaker 1: the that's the economy that we're in here. Uh so,
Speaker 1: so what do you do about it? Then we're coming
Speaker 1: off another big night of primaries this week in which crime,
Speaker 1: gun violence took a lot of the attention. Then we
Speaker 1: went to this January sixth mode with the hearing reminding
Speaker 1: us of our darkest moment. How does the president get
Speaker 1: out of this hole? Yeah, don't eat the beef. Apparently
Speaker 1: eggs up, it's just fat out there. He's at the
Speaker 1: kitchen table, as Rick says, but apparently he's not eating
Speaker 1: that much. Um, you know, I think Rick Rick is
Speaker 1: absolutely right. You know the problem is, it feels to
Speaker 1: me a bit like the president. The White House has
Speaker 1: internalized this idea, which you know, I understand, but there's
Speaker 1: not a lot they can do about this. We heard
Speaker 1: this in the context when he was on Jimmy Kimmel
Speaker 1: about gun violence. You know, Jimmy Kimmel asked him, you know,
Speaker 1: can you do anything visa via executive order? And he's explaining, no,
Speaker 1: that probably won't work. Well, the President has got to
Speaker 1: have a better message than there's not a lot I
Speaker 1: can do. I understand your anxious but and you know,
Speaker 1: one thing we need to underscore is a big problem
Speaker 1: for this Democratic Party and for the White House right
Speaker 1: now is was Joe Mansion right when he said, don't
Speaker 1: pass that build back Better? Could you imagine had they
Speaker 1: passed that at you know, two trillion whatever it was
Speaker 1: gonna be, how much worse the situation could be. And
Speaker 1: you look at the President's answer to inflation, beyond putting
Speaker 1: Jerome Powell on the hot seat, he's talking about fundamental
Speaker 1: aspects of build back Better under another name, and that
Speaker 1: is where people have to go back and scratch their head.
Speaker 1: Does he have a plan here and is it one
Speaker 1: that's going to lower inflation or address it? Versus increase
Speaker 1: it that Jimmy Kimmel appearance, the talking about inflation the
Speaker 1: bane of our existence. Rick Davis, you questioned the choice
Speaker 1: of doing that before he went was that or could
Speaker 1: it end up going down as Joe Biden's malaise speech.
Speaker 1: You know, I think it has some potential. He's he's
Speaker 1: he's a little you know, uh sad these days as
Speaker 1: president United States. I mean, he's trying to feel everybody's pain,
Speaker 1: but he's not given him an aspirin in the process.
Speaker 1: And and and I guess the point I was trying
Speaker 1: to make about the Jimmy Kimmel thing. He hasn't talked
Speaker 1: to the American press, he hasn't had a national interview
Speaker 1: in hundred and almost twenty days, and yet his one
Speaker 1: I'm going to relieve the pressure by going on Jimmy Kimmel.
Speaker 1: That's not news, it's entertainment. Give me a break. I mean, like,
Speaker 1: you know, if I was handling this candidate, uh and
Speaker 1: and and been that long since we talked to the press,
Speaker 1: we'd be getting killed. And this guy seems to we're
Speaker 1: getting away with it. And I would say to you know,
Speaker 1: we started this segment by talking about Larry Summers. Larry
Speaker 1: Summers has been all over this administration for their lackluster
Speaker 1: handling of inflation, and he's one of them. I mean,
Speaker 1: you can't have your anti trust chief going out to
Speaker 1: break up meat fact, you know, meat distributors and and
Speaker 1: and people like that, at the same time you're trying
Speaker 1: to actually create a better supply chain of that product.
Speaker 1: And so like the right hand doesn't know what the
Speaker 1: left hands doing in this administration. Here the full interview
Speaker 1: with Larry Summers, by the way, coming up in the
Speaker 1: very next hour on Bloomberg Wall Street Week with David West,
Speaker 1: and he had a lot more to say than that.
Speaker 1: Rick and Genie have a lot more to say as well,
Speaker 1: and they're going to stay with us for the hour
Speaker 1: as we turned to January six and the primetime hearing.
Speaker 1: Next time, Joe Matthew, this is Bloomberg broadcasting live from
Speaker 1: our nation's capital, Bloomberg to New York, Bloomberg eleven, Trio
Speaker 1: to Boston, Bloomberg one oh six one to San Francisco,
Speaker 1: Bloomberg nine six to the country, Serious x M General one,
Speaker 1: and around the globe, the Bloomberg Business app and Bloomberg
Speaker 1: Radio dot Com This is Bloomberg Sound On with Joe Matthew.
Speaker 1: The headline on the terminal jan six panel weaves tale
Speaker 1: of lying Trump, raging mob, cops, valor. It also brought
Speaker 1: back a lot of tough memories through that new video.
Speaker 1: Through the testimony, we're gonna talk about the January six
Speaker 1: committees first night in prime time. It was quite a
Speaker 1: show last night went a lot longer than ninety minutes,
Speaker 1: as it turned out. My goodness, the opening statements took
Speaker 1: almost an hour by the time Benny Thompson and Liz
Speaker 1: Janey were done. We're looking at nine o'clock, and I'll
Speaker 1: be deeply curious if we get ratings on this kind
Speaker 1: of thing. It's They're gonna be another several hearings and
Speaker 1: then the final one they say will be in prime
Speaker 1: time as well. But quite a quite a moment right
Speaker 1: up front to hear the chairman, Congressman Benny Thompson, lay
Speaker 1: it down here he is January six was the culmination
Speaker 1: of an attempted coup, a brazen attempt, as one riot
Speaker 1: to put it shortly after January six, to overthrow the government.
Speaker 1: Also incredible to hear from not just Liz Cheney's opening statement.
Speaker 1: But they were doing this, you know, kind of like
Speaker 1: I do here with playing cuts of people talking interspersed.
Speaker 1: You heard Ivanka Trump, you heard Bill Barr, the former
Speaker 1: attorney general. Hearing these former high ranking officials in the
Speaker 1: Trump administration testifying their own words was impactful, as were
Speaker 1: the witnesses. Bloomberg Government's Jack Fitzpatrick was at the Capitol
Speaker 1: last night, had a late night as all this unfolded
Speaker 1: in We're lucky to have him with this right now.
Speaker 1: Jacket was the first outing here and we don't need
Speaker 1: to necessarily review everything that happened, but significant, as lisz
Speaker 1: Cheney pointed out, a meeting in the White House on
Speaker 1: December in which Donald Trump got together with former General
Speaker 1: Michael Flynn, Rudy Giuliani, Sydney Powell, and they talked about
Speaker 1: the idea of martial law, having the military sees voting
Speaker 1: machines before they were joined by other members of the staff.
Speaker 1: And it was about an hour later that the come
Speaker 1: to d C January six, It's going to get wild,
Speaker 1: uh tweet went out. Can this committee connect the dots
Speaker 1: between that meeting, that tweet and groups like the Proud
Speaker 1: Boys and the Oath Keepers that is exactly what they're
Speaker 1: gonna try to do. It was really interesting that moment
Speaker 1: because we knew there were theories being proposed by people
Speaker 1: like Mike Flynn, uh, that that were a little bit
Speaker 1: out there in terms of sees in voting machines or
Speaker 1: something along those lines. But the committee really described that.
Speaker 1: Liz Cheney described that as a pivotal point in everything
Speaker 1: they're laying out, uh, and it ties in then to
Speaker 1: the far right groups, the Proud Boys and oath Keepers
Speaker 1: that they're they're clearly going to follow through on in
Speaker 1: in subsequent meetings, in subsequent hearings. So I yeah, I
Speaker 1: mean that was that was one point of I think
Speaker 1: basically a three pronged approach, saying making the argument that
Speaker 1: the then President Trump absolutely must have known that these
Speaker 1: legal theories were without merit, that his own attorney general
Speaker 1: was arguing against them directly to him, that through those
Speaker 1: kinds of meetings with Flynn and others, he was pushing
Speaker 1: the envelope further and further, got to the point where
Speaker 1: he probably knew there would be violence at the Capitol
Speaker 1: on January six, and then when it happened, did nothing
Speaker 1: despite the calls from people like Kevin McCarthy for help.
Speaker 1: So that that needing that you just described is essentially
Speaker 1: at the center of this whole narrative, uh, chronologically that
Speaker 1: they're going to lay out that they laid out and
Speaker 1: will continue to lay out over the course of we
Speaker 1: think six hearings overall. Annie Thompson says there will be
Speaker 1: actual evidence of conversations. He told CNN with those groups
Speaker 1: and people in Trump's so called orbit. We wonder how
Speaker 1: close to the sun this whole thing gets. But really
Speaker 1: interesting to hear when when these these uh testimony were delivered.
Speaker 1: Bill Barr, for instance, the former Attorney General, speaking very
Speaker 1: bluntly in this video, is one of the first things
Speaker 1: that we saw when he told Donald Trump that there
Speaker 1: was there was no significant election for that it had
Speaker 1: not been stolen. Here's what he said. I did not
Speaker 1: agree with the idea of saying the election was stolen
Speaker 1: and putting out this stuff, which I told the president
Speaker 1: was both and uh, you know, I didn't want to
Speaker 1: be a part of it, and that's one of the
Speaker 1: reasons that went into me deciding to leave. When I did,
Speaker 1: I observed, I think it was on December first, that
Speaker 1: you know, how can we you can't live in a
Speaker 1: world where where the incumbent administration stays in power based
Speaker 1: on its view unsupported by specific evidence that the election,
Speaker 1: that there was fraud in the election. You gotta love
Speaker 1: when you have to bleep the the attorney general. Uh.
Speaker 1: Then we heard from Ivanka Trump who said, yeah, I
Speaker 1: I took him at his word. Essentially, I had respect
Speaker 1: for Bill Barr's view. President Trump. Former President Trump has
Speaker 1: since sent out a a statement on his own truth
Speaker 1: social saying that Ivanka was was it disconnected or had
Speaker 1: checked out? He said by that there was thrower under
Speaker 1: the bus. I guess Jack a little bit. But Uh,
Speaker 1: the idea that he was being told on a daily
Speaker 1: basis by people he trusted that there was there was
Speaker 1: no theft, there was no fraud that would change the
Speaker 1: outcome of the election really makes it amazing when you
Speaker 1: consider what he was saying publicly. Yeah, and that's going
Speaker 1: to be key to their argument that he knew what
Speaker 1: he was doing. And the the implication, or even something
Speaker 1: more direct than than implying that the committee is making
Speaker 1: is that, Okay, if he knew that there was no
Speaker 1: legal merit to these claims he was making, he was
Speaker 1: doing something extra judicial. He must have essentially been calling
Speaker 1: on people to go to the capital not to conduct
Speaker 1: a legal argument, but through violence or or some extra
Speaker 1: judicial means to overturn the election in ways that a
Speaker 1: court would not side with. That's the the early part
Speaker 1: of the chronology and really pivotal part of what the
Speaker 1: committee is laying out and on on that. You know,
Speaker 1: it was very interesting the Ivanka Trump clip, but also
Speaker 1: Jared Kushner then downplaying the threats of legal advisors to
Speaker 1: the president of they threatened to resign. They showed a
Speaker 1: clip from Kushner saying he chucked that up to whining
Speaker 1: in his words. So on one hand, the president had
Speaker 1: people very close to him saying there's no legal merit,
Speaker 1: and yet potentially there are other people like Jared Kushner
Speaker 1: who nudged him along or or downplayed all of these complaints.
Speaker 1: Everyone's asking the same question here in our last minute, Jack,
Speaker 1: you know, what does this lead to? Is it going
Speaker 1: to be up to the Department of Justice to decide
Speaker 1: if they pursue charges that you know, the committee's work
Speaker 1: can only go so far. Yeah, legally you would expect
Speaker 1: this to be essentially handed off to the Justice Department
Speaker 1: in the sense that they already have handed some of
Speaker 1: that off when people have not complied with subpoenas. But politically,
Speaker 1: they're making their case to the American people. It plays
Speaker 1: into the mid terms, it plays into our longer term
Speaker 1: understanding of our own history. Uh. And so the importance
Speaker 1: of this kind of seems to go beyond Okay, what
Speaker 1: do they do. It doesn't come down to a vote
Speaker 1: in committee. It's a much broader issue and argument that
Speaker 1: they're making men that More hearings ahead next week. Great
Speaker 1: work is always with our colleague Jack sitz Patrick Bloomberg,
Speaker 1: Government's Congress reporter, will reassemble the panel next for more.
Speaker 1: This is Bloomberg. Any legal jargon you hear about, seditious, conspiracy,
Speaker 1: obstruction of an official proceeding, conspiracy to the fraud the
Speaker 1: United States boils down to this. January six was the
Speaker 1: culmination of an attempted coup, a brazen attempt, as one
Speaker 1: ride to put it shortly after January six, to overthrow
Speaker 1: the government. What I saw was just a war seene.
Speaker 1: It was something like I had seen out of the movies.
Speaker 1: I couldn't believe my eyes. There were officers on the
Speaker 1: ground I mean I saw friends with blood all over
Speaker 1: their faces. I was slipping in people's blood. They are
Speaker 1: scrambling to change the headlines, praying that the nation will
Speaker 1: focus on their partisan witch hunt instead of our pocketbooks.
Speaker 1: It will not work, and aware of the rioters chance
Speaker 1: to hang Mike Pence, the President responded with this sentiment, quote,
Speaker 1: maybe our supporters have the right idea Mike Pence quote
Speaker 1: deserves it. Just this week, Nancy Pelosi's illegitimate January six
Speaker 1: committee secretly hired the former president of ABC News to
Speaker 1: produce these shameless primetime show. This was the same producer
Speaker 1: that covered up victims of Jeff Epstein. I did not
Speaker 1: agree with the idea of saying the election was stolen
Speaker 1: and putting out this stuff, which I told the President
Speaker 1: was both. President Trump sent the tweet on the screen
Speaker 1: now telling people to come to Washington on January six.
Speaker 1: Be there, He instructed them, will be wild. Trump has
Speaker 1: only asked me for two things. He asked me for
Speaker 1: my vote, and he asked me to come on January six.
Speaker 1: I know why I was there, and that's because we
Speaker 1: called me there. I did believe, you know that the
Speaker 1: election was being stolen. Um and Trump asked us, this
Speaker 1: committee is not about seeking the truth. It is a
Speaker 1: smear campaign against President Donald Trump, against Republican members of Congress,
Speaker 1: and against Trump voters across this country. This committee is unconstitutional,
Speaker 1: it is illegitimate. I say this to my Republican colleagues
Speaker 1: who are defending the indefensible. There will come a day
Speaker 1: when Donald Trump is gone, but your dishonor will remain.
Speaker 1: In a hearing person by Benny Thompson, the chair of
Speaker 1: Congresswoman Liz Cheney, who you heard, and criticism as you
Speaker 1: also heard by Representative at least Defanek, who did not
Speaker 1: like what she saw or heard last night. How about
Speaker 1: the panel? Rick Davis and Jeanie Schanzano are with us
Speaker 1: Bloomberg Politics contributors. I was thinking about you guys last night.
Speaker 1: We talked about it coming up into this, uh Rick
Speaker 1: Davis from a production standpoint, I remember you wanted them
Speaker 1: to get into this a little bit quicker than they did.
Speaker 1: We had extended opening statements that lasted the better part
Speaker 1: of an hour, but they were also very well written
Speaker 1: and very poignant for a lot of people. As I
Speaker 1: heard throughout the day to day, how did they do Joe,
Speaker 1: I totally agree with you, longer than I would have
Speaker 1: put them out, But they were really good opening statements.
Speaker 1: They laid out the whole thing in a comprehensive way.
Speaker 1: So if all you saw or the opening statements, you
Speaker 1: pretty much knew what the rest of the hearings were
Speaker 1: going to be about. Uh. But I would have gotten
Speaker 1: to the video earlier because that was really compelling stuff,
Speaker 1: things that I had not seen before. And I must
Speaker 1: say the way this has did a great job, so
Speaker 1: um sure I watched whole two hours of it. I
Speaker 1: thought it was compelling. Twenty million people joined me. But
Speaker 1: I think that, uh, we'll see where it goes from here.
Speaker 1: And they have oft to a good start. You brought
Speaker 1: back some really tough memories, Uh, Genie, what sort of
Speaker 1: surprise myself. And that was the whole point of putting
Speaker 1: this video together. But some of that footage, the first
Speaker 1: hand stuff, the p o V stuff from the police,
Speaker 1: especially from law enforcement, just taking enormous amounts of abuse
Speaker 1: for such an extended period of time. Of course, we
Speaker 1: heard from the Capitol police officer who experienced brain brain injury,
Speaker 1: was trampled and knocked unconscious, and we've heard a lot
Speaker 1: of scary stories like that. Before we get into some
Speaker 1: of the details, Genie, what was your sort of top line.
Speaker 1: How did they do as you sat there with high expectations. Well,
Speaker 1: first of all, Joe, I think they should have hired
Speaker 1: you to do the best recap ever with the best
Speaker 1: music and put that out for the young people. That's
Speaker 1: only our Yeah, that'll reach the young people. Um, you know,
Speaker 1: I I think they did a fairly good job. You
Speaker 1: compare it to other, you know, congressional hearings. This was
Speaker 1: you know, far and away, um, very well done. But
Speaker 1: of course it's a difficult thing to do. And so
Speaker 1: I think they did reach the point of giving some
Speaker 1: new information. And I agree that the video was, you know,
Speaker 1: startling something we hadn't seen before. We did get some
Speaker 1: new information. I think the most startling thing for me
Speaker 1: was the idea that Donald Trump had essentially abdicated his
Speaker 1: responsibility as president during those hours. Um, you know the
Speaker 1: comments about Mike Penn's maybe he deserves it. But one
Speaker 1: thing that I was looking for that they did not
Speaker 1: get to. And they're promising and Jack talked about this
Speaker 1: to get to future hearings, but I think they should
Speaker 1: have last night was the connection between the Proud Boys
Speaker 1: and the oath Keepers and the White House and the President.
Speaker 1: You know, Bennie Thompson goes on TV after the hearing
Speaker 1: and says, they're going to connect those dots. I'm not
Speaker 1: sure why they're waiting on that. They should have connected
Speaker 1: that last night. In my lot of this, especially Liz
Speaker 1: Cheney's opening statement was really a preview as well. Off, Hey, listen,
Speaker 1: you're you're gonna hear and see evidence of this. We're
Speaker 1: also going to show you how this happened. So I'm
Speaker 1: deeply curious to see how they roll things out in
Speaker 1: the next couple of days. We've got a couple more
Speaker 1: hearings next week, and then you know, there'll be another
Speaker 1: one on TV at the end of this. But I'm
Speaker 1: glad you mentioned Mike Pence. I want to bring us
Speaker 1: back to a moment in that video where they actually
Speaker 1: show talking about connecting the dots. Here, Jennie, they show UH,
Speaker 1: with almost no time to spare. President Trump sends a
Speaker 1: tweet about Mike Pence. You know, shame on Mike Pence,
Speaker 1: and it's being UH for not standing up for whatever
Speaker 1: they were planning to do, and it's being read by
Speaker 1: one of the protesters, one of the rioters over a
Speaker 1: megaphone almost you know, a radio from Donald Trump here
Speaker 1: and it's getting the crowd in a froth listen succurate
Speaker 1: one which they were asked to previously. He's reading that
Speaker 1: directly from the Trump tweet. And now you here bring
Speaker 1: out Pence and they go into the hang Mike Pence
Speaker 1: chance that we've heard before. Absolutely shocking just to relive that,
Speaker 1: Rick Davis, and then to hear that it was Mike
Speaker 1: Pence who was making the phone calls to General Mark Milly,
Speaker 1: to the leadership at the Pentagon asking for help, and
Speaker 1: not a single call came from Donald Trump. Yeah. I
Speaker 1: thought it was really a compelling part of the video.
Speaker 1: And you have to keep reminding yourself that Donald Trump
Speaker 1: is sitting in the White House watching the riot unfold,
Speaker 1: breaking through barriers and barriers heading into the capital to
Speaker 1: disrupt the election certification, and he writes that tweet. I
Speaker 1: mean is it's literally a madman reacting to what should
Speaker 1: be the opposite, which is trying to get people to
Speaker 1: calm down and read out by a bull horn to
Speaker 1: juice the crowd up that then immediately turn on Mike
Speaker 1: Pens and start talking about hanging him. I mean when
Speaker 1: you see that, you're reminded of the day, right, the
Speaker 1: shock of the day. You didn't you didn't have that
Speaker 1: much detailed information or how it all fit into what
Speaker 1: was happening in the Oval office. And I think that's
Speaker 1: why they're gonna need seven sessions to outline all the
Speaker 1: level of detail and and to this point about putting
Speaker 1: together these these uh extremist groups who really helped manage
Speaker 1: the violence. Uh, that is the entire sixth and seventh tiering, right,
Speaker 1: is the connection between them? And the key thing isn't
Speaker 1: that they have a connection between the Proud Boys and
Speaker 1: the Oathkeepers. It's what's the connection between the Proud Boy,
Speaker 1: the Oathkeepers and Donald Trump? And how far out of
Speaker 1: the orbit is? How close did they get to the sun?
Speaker 1: As I said earlier, Genie, how about Trump asked me
Speaker 1: to come. You know, we saw the video of members
Speaker 1: of those groups and other other insurrectionists telling uh this
Speaker 1: documentary maker who testified why they decided to show up.
Speaker 1: Let's listen to a little bit of that. Trump has
Speaker 1: only asked me for two things. He asked me for
Speaker 1: my vote and he asked me to come on January six.
Speaker 1: I know why I was there, and that's because he
Speaker 1: called me there and he laid out what is happening
Speaker 1: in our government. He laid it out. What really made
Speaker 1: me want to come was the fact that, you know,
Speaker 1: I had supported Trump all that time. I did believe,
Speaker 1: you know, that the election was being stolen um and
Speaker 1: Trump asked us to come, asked us to come. We
Speaker 1: heard that a lot of times in that video, Genie.
Speaker 1: It's not just connecting dots between the White House and
Speaker 1: those who who attacked the capital. These groups were hearing about,
Speaker 1: but also how he instigated a crowd. Does that count?
Speaker 1: It does count? I mean it is. Liz Cheney talked
Speaker 1: about he summoned them, he assembled them, and he lit
Speaker 1: the flame. And after that flame was lit again, he
Speaker 1: abdicated his responsibility as president. He did nothing. His chief
Speaker 1: of staff was calling about how he looked politically. Donald
Speaker 1: Trump didn't call Mike Pence under attack, was trying to
Speaker 1: handle it. It's constitutionally a stunning revelation to have a
Speaker 1: president in office not doing anything. And the other part,
Speaker 1: you know, we should just mention that. Liz Janey also
Speaker 1: talked about was you had GOP members of Congress who
Speaker 1: tried to help the president steal the election, and then
Speaker 1: they appealed for pardons. She named Representative Scott Perry last night.
Speaker 1: Now he has subsequently said that's not true because more
Speaker 1: names are coming. More names are coming either talking Andy Biggs,
Speaker 1: Moe Brooks all ghost er. But you know, he says,
Speaker 1: we should say that that's not true. But there's got
Speaker 1: to be some documentation of that, and we're gonna the
Speaker 1: truth will come out, but that would be a you know,
Speaker 1: real stark revelation. Genie Chanzano, Rick Davis. The more charges
Speaker 1: come from these hearings, It's too early to tell, but
Speaker 1: the Justice Department is going to have a hot POTATA.
Speaker 1: Let's get back here next week. I'm Joe Matthew. This
Speaker 1: is Bloomberg.