Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along
Speaker 2: with Lisa Bromwitz and Amrie Hordert join us each day
Speaker 2: for insight from the best in markets, economics, and geopolitics
Speaker 2: from our global headquarters in New York City. We are
Speaker 2: live on Bloomberg Television weekday mornings from six to nine
Speaker 2: am Eastern. Subscribe to the podcast on Apple, Spotify or
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Speaker 2: Terminal and the Bloomberg Business app. We begin this hour,
Speaker 2: which starts looking to build on a record breaking nine
Speaker 2: day winning streak. Cameron Dawson of New Wege Wealth, writing,
Speaker 2: you can't stop the beats, with earning speeds and raises
Speaker 2: continuing to be the justification for new highs in equity markets,
Speaker 2: Cam joins us for more. Cameron, good morning, Good morning,
Speaker 2: it's going to see you.
Speaker 3: Look.
Speaker 2: The fundamental story I think is well understood at this point.
Speaker 2: The earnings have been super, super powerful. Where is the
Speaker 2: more speculative story emerging for you?
Speaker 3: Oh?
Speaker 4: Well, we've seen an incredible rally in the most speculative
Speaker 4: portions of the market. Look at the Goldman Sachs Unprofitable
Speaker 4: Tech Index, up fifteen percent in last week alone. It's
Speaker 4: up sixty five percent since the March lows. You look
Speaker 4: at the cohort of space names, most of them are unprofitable.
Speaker 4: They're up one hundred percent year to date. You look
Speaker 4: at the Russell twenty five hundred, the leaders in that
Speaker 4: index are all coming from very unprofitable names. If you
Speaker 4: take out or if you look at the names that
Speaker 4: are actually generating profit and up and trading at a discount,
Speaker 4: they're only up about eight percent. So if you're a
Speaker 4: high quality name, you've been sitting out on that. You've
Speaker 4: been sitting out on this rally. So the question is
Speaker 4: how much can this speculative portion of markets continue.
Speaker 2: So we've got some froth, you've identified it. Technico's a stretched.
Speaker 2: People have talked about that endlessly over the last two
Speaker 2: months or so. Is that enough reason to sit this out?
Speaker 4: No, it's not, because the earnings picture is so very strong.
Speaker 4: But I think what we have to appreciate with the
Speaker 4: earning story is two really big things. The first one
Speaker 4: is the upside in the hyperscaler capex. This time last year,
Speaker 4: we're expecting hyperscaler capex to be up ten percent. That
Speaker 4: number today is eighty percent. So you remember that one
Speaker 4: man's capex is another man's profit. And that brings you
Speaker 4: to the other really important point about this earning story,
Speaker 4: which is that we are in an operating leverage boom
Speaker 4: driven by the semiconductors. These are typically high operating leverage businesses,
Speaker 4: which just means that a little bit of sales growth
Speaker 4: generates a lot of earnings growth. And you've seen that
Speaker 4: because margins for semiconductors have expanded from thirty percent just
Speaker 4: nine months ago to forty five percent today. So because
Speaker 4: we're seeing this increase in sales, it's causing a huge
Speaker 4: boom in profits. But what we have to watch is
Speaker 4: that if sales slow down a little bit, what you
Speaker 4: could see is this de leveraging of operating profits that
Speaker 4: could cause earnings growth to not be as robust as
Speaker 4: we look into twenty twenty seven.
Speaker 1: I feel like we should have a bell that dings
Speaker 1: every time some with seven earnings earnings. You know, if
Speaker 1: you think drinking game, drug show, bramo, Okay, well we
Speaker 1: can plate for drinks, so you never know, you know,
Speaker 1: drinking coffee, there is an ultimate question, is it just
Speaker 1: going to be an earnings acceleration that's going to potentially
Speaker 1: drive some sort of correction to this, or could it
Speaker 1: just be by virtue of the supply that's coming to market.
Speaker 4: Oh. I think that's a really interesting and important point
Speaker 4: because we've been in a world for the last few
Speaker 4: years where we've seen equity supply effectively falling. We've seen
Speaker 4: much more buybacks than we've seen any new equity issuance
Speaker 4: at the same time as equity demand has been very strong,
Speaker 4: simply because we push so much liquidity into the system
Speaker 4: during the COVID era. So we learn in economics one
Speaker 4: oh one when supply drops and demand goes up, prices
Speaker 4: go up. So now we're in an environment where supply
Speaker 4: is certainly going up, whether it's from the IPOs or
Speaker 4: the Google issuance, and that just suggests that there is
Speaker 4: a lot of supply for this market to take down.
Speaker 4: And the question is is there the incremental demand to
Speaker 4: absorb all this incremental supply. So it very much is
Speaker 4: what we think of as a Shakespearean see change when
Speaker 4: it comes to that supply demand balance for the equity market.
Speaker 1: How do you clear space to participate in some of
Speaker 1: these IPOs, do you, I mean, how do you sort
Speaker 1: of understand what to sell in order to playball right now?
Speaker 4: Yeah, Well, the indices are forced to and I think
Speaker 4: that that's probably one of the most important points is
Speaker 4: that the industries are now being forced to put a
Speaker 4: weight in these names, and mostly for the Nasdaq, where
Speaker 4: there's going to be a multiplier on the float for
Speaker 4: a name like SpaceX. I think the question for us
Speaker 4: is that we will stick to our knitting when it
Speaker 4: comes to valuation, discipline, and quality. And you look at
Speaker 4: name like SpaceX trading at what could be eighty to
Speaker 4: one hundred time sales on sales that have been growing
Speaker 4: about thirty percent. They've decelerated to fifteen percent back in
Speaker 4: the first quarter. But when you traded at eighty to
Speaker 4: one hundred time sales, even when those sales actually become
Speaker 4: something that becomes reality, the problem is you have to
Speaker 4: grow into that fulsome multiple. Palenteer is a great example
Speaker 4: of this. Palenteer traded to ninety times sales in the
Speaker 4: middle of last year during that big, huge rally we had,
Speaker 4: and then the sales came. Sales are going to grow
Speaker 4: seventy two percent this year, but the stock has been
Speaker 4: flat because we've had to row into that high price
Speaker 4: of sales multiple. So for us as quality investors will
Speaker 4: always stay balanced with that valuation discipline.
Speaker 5: Kern, though, do you think it's uncomfortable that, I mean,
Speaker 5: the Bank of America fund manager survey show this record
Speaker 5: inflow most overweight positions since twenty two thousand and two
Speaker 5: into equities. Is it uncomfortable that everyone is there?
Speaker 4: Well, what's fascinating is that we are seeing those inflows
Speaker 4: because people are having to chase. If you look at
Speaker 4: the Deutsche Bank Consolidated Equity Positioning Index, it's only in
Speaker 4: the sixty first percentile, and that has gone into the
Speaker 4: danger zone. If you go back to late twenty twenty one,
Speaker 4: you were in the ninetieth percent plus. So there are
Speaker 4: signs that institutions have somewhat sat on the sidelines of
Speaker 4: this rally. I don't think that you can say the
Speaker 4: same thing for households. Household equity allocations are still at
Speaker 4: all time highs. If you look at things like the
Speaker 4: put call ratio, that speaks to some of that complacency,
Speaker 4: and already there put call ratios are incredibly low, which
Speaker 4: just means that nobody is caring about downside protection right now.
Speaker 4: So the balance of overall of overall positioning is that
Speaker 4: it's not enough to be a tail end of this market,
Speaker 4: but it's probably not quite enough to be an absolute
Speaker 4: headwind like we got you back at the end of
Speaker 4: twenty twenty one.
Speaker 5: To Lisa's point, though, where are people selling? Is it
Speaker 5: other equities or are they just maybe selling things like
Speaker 5: crypto treasury to make sure they can get into some
Speaker 5: of these high flyers.
Speaker 4: The fact that Crypto is sitting out on this risk
Speaker 4: on rally does suggest that people are potentially using that
Speaker 4: as liquidity to chase other areas of the market, because look,
Speaker 4: we know that there are a lot of momentum traders
Speaker 4: out there that are just chasing strong returns. So potentially
Speaker 4: that is the area where people are using that as
Speaker 4: liquidity to chase into into something like SpaceX.
Speaker 2: Stay with us, mulplempeg Savannah's coming up off to this.
Speaker 2: If there is the greatest hits of topics, people on
Speaker 2: Wall Street do not want to talk about. The stratiformos
Speaker 2: is up there, and this is too. The Trump administration
Speaker 2: fighting back against the Supreme Court's tariff defeat with a
Speaker 2: fresh wave of levies, including a ten percent charge on
Speaker 2: imports from sixty different trading partners, leyby canselor Pimco joins us.
Speaker 2: Now for more, LIDDI, good morning.
Speaker 6: Can you here to talk about this?
Speaker 3: I'm so here for it.
Speaker 2: You get the short straw, we can change the topic
Speaker 2: pretty quickly. Your thoughts on this action, where's this going?
Speaker 2: And how big is this wall going to be?
Speaker 6: Even though I think this was sort of in the
Speaker 6: rear view mirror for the for Wall Street, this is
Speaker 6: actually very much expected. As a reminder, when the AIPA
Speaker 6: tariffs were struck down by the Supreme Court, the President
Speaker 6: of the USTR moved forward with something called Section one
Speaker 6: twenty two tariffs, the sort of blanketed ten percent tariffs
Speaker 6: across the board. Those expire though, on July twenty fourth,
Speaker 6: so those have sort of a limit to this. So
Speaker 6: we were expecting that they would be using some of
Speaker 6: these other tools that Congress has actually provided to the
Speaker 6: President to move forward to try to rebuild that tariff wall.
Speaker 6: As you said, I think some of the interesting is
Speaker 6: that this tariff rate is maybe a little bit more benign,
Speaker 6: a little bit more reasonable. Certainly than those that we
Speaker 6: had seen a liberation day, but even those that we
Speaker 6: had seen kind of post liberation day. So I think
Speaker 6: by the effect of average terifry, this might actually land
Speaker 6: it at a lower rate at the end of the day.
Speaker 6: But again, none of this is surprising. I also think
Speaker 6: there's a deficit angle here, which I know Lisa does
Speaker 6: like to talk about. Of course, this is revenue that
Speaker 6: the Treasury likes, that the US is sort of getting
Speaker 6: addicted to it, if you will. It's one of the
Speaker 6: reasons why we think tariffs are going to be sticky
Speaker 6: sort of regardless of who wins in twenty twenty eight,
Speaker 6: because this is something that is generating quite a lot
Speaker 6: of revenue and again sort of politically is salient on
Speaker 6: both sides of the island.
Speaker 5: Where does this put some of the trade deals though,
Speaker 5: that they have with Switzerland, the European Union. His massive
Speaker 5: summit was Shijing, Pang.
Speaker 6: Yeah, I mean that is I think an open question
Speaker 6: a Marie. I think we've been a little bit skeptical
Speaker 6: of some of those pledges around those trade deals. Anyway,
Speaker 6: you haven't necessarily seen some of those investments come to fruition.
Speaker 6: For instance, you know, we'll see with the sort of
Speaker 6: the European trade deal in particular, just given that that
Speaker 6: is you know, sort of pending in the in the EU.
Speaker 6: So yeah, I have I think that's an open question
Speaker 6: for for sure.
Speaker 5: Obviously a PIMPCO, you're tracking the mortgage market and what
Speaker 5: is going on with FHFA, and the director of fh
Speaker 5: FA now is the acting Director of National Intelligence. What
Speaker 5: was your reaction to Bill Poulty moving over to this space.
Speaker 6: Yeah, I would say, you know, I think we would
Speaker 6: argue that second to the treasury market, the agency NBS
Speaker 6: market is probably the most important market, particularly to US.
Speaker 6: But I think, you know, just sort of writ large
Speaker 6: because of course that sets the mortgage rate that you know,
Speaker 6: consumers access. You know, this is I mean, it's an
Speaker 6: interesting choice. Obviously, Bill Poulty has been said, doesn't necessarily
Speaker 6: have the traditional background for an act for a DNA director.
Speaker 6: I think the one thing that is important though is
Speaker 6: this is an acting position. And just as a reminder,
Speaker 6: something called the Vacancies Act that allows the President to
Speaker 6: move somebody in a vacant position, which is a Senate
Speaker 6: confirmed position, only at that other person is Senate confirmed
Speaker 6: only for two hundred and ten days, so I think
Speaker 6: it was very I think the present was very specific
Speaker 6: that this was an acting position. He hasn't actually nominated
Speaker 6: him for the permanent position. That would of course require
Speaker 6: Senate confirmation. So I think my view we'll see is
Speaker 6: that this is probably a temporary post, not a permanent post.
Speaker 6: I do think though, as it relates to the mortgage market,
Speaker 6: this takes the chances of IPO for Fanny and Freddy
Speaker 6: very much off the table. That has been our view
Speaker 6: at PIMCO for many years. We think that risks actually
Speaker 6: increasing the mortgage rate, not decreasing the mortgage rate, which
Speaker 6: is anathemach to what the administration wants at this point. Anyway,
Speaker 6: we think this is sort of the death knell for
Speaker 6: the IPO of Fany and Freddy.
Speaker 1: This is actually incredibly important for a lot of people
Speaker 1: in the market, and they actually might view this as
Speaker 1: a bullish sign because there won't be more at risk
Speaker 1: introduced into the privatization of these particular agencies. Do you
Speaker 1: have the same kind of view, Yeah.
Speaker 6: I think We've been engaging with policymakers and we said
Speaker 6: one thing that they could do was clarify the future
Speaker 6: of Fanny and Freddy and sort of take this idea
Speaker 6: of privatization off the table. I mean, they are, you know,
Speaker 6: for better or for worse, they're functioning in credibly well
Speaker 6: in conservatorship in terms of providing liquidity to the secondary
Speaker 6: mortgage market. And if you do anything to sort of
Speaker 6: upset the relationship between the government and Fanny and Freddy,
Speaker 6: you do see that risk premium come back into mortgage yields,
Speaker 6: and so, you know, we think that there's an argument
Speaker 6: to be made that maybe some more clarification can actually
Speaker 6: decrease mortgage yields. Of course that's what the administration wants.
Speaker 1: I find it fascinating. You're right, Tariff's not that exciting
Speaker 1: to me right now, just because it seems to leave
Speaker 1: us in the same place. The straight up from Moos
Speaker 1: isn't necessarily analyzable. But this particular administration Washington, d C.
Speaker 1: Has had more direct influence on markets than any I
Speaker 1: can remember in recent and modern history, whether it's personal
Speaker 1: sign off by the President on specific transactions, whether it's
Speaker 1: jaw owning specific companies that are doing different things. How
Speaker 1: big are the lobbying bills? I mean, do you see
Speaker 1: all the lobbyists to sort of gathering around there to
Speaker 1: try to make sure that that deal gets in front
Speaker 1: of the right person.
Speaker 6: Well, I think this is sort of interesting about this
Speaker 6: president is that, you know, a lot of what he
Speaker 6: is doing in terms of private industry is very much
Speaker 6: more indicative or in sort of parallel with what Democrats
Speaker 6: have done, right, sort of the state capitalism industrial policy.
Speaker 6: This used to be sort of the purview of Democrats
Speaker 6: picking winners and losers. Now you know President Trump is
Speaker 6: doing it. So yes, absolutely, our lobbyists kind of lining up.
Speaker 6: I would say, just going back to the discussion of
Speaker 6: the mortgage market, something important that Fanny and Freddie have
Speaker 6: done is that they've been in the market. They've been
Speaker 6: buying agency nbs to try to decrease that mortgage rate.
Speaker 6: We think that's actually been quite effective. Now that was
Speaker 6: sort of upset by the Iran war, so I think
Speaker 6: in some ways it was negated by that. But it
Speaker 6: will be interesting, I think just in terms of the
Speaker 6: PULTI discussion, will that continue, Will they continue to be
Speaker 6: in the market trying to decrease yields? But yeah, I
Speaker 6: mean broadly, this administration obviously much more interventionists than traditional
Speaker 6: Republican imagry.
Speaker 2: You've got a really think through about what we're normalizing care.
Speaker 2: Stay with us. More Bloomberg Surveillance coming up after this.
Speaker 2: The former US Vice President Mike Pence warning of threats
Speaker 2: to the Republican Party in his latest book What Conservatives Believe,
Speaker 2: Rediscovering the Conservative Conscience, Pence writing, quote, Trump has not
Speaker 2: always governed as a conservative. The result is that many
Speaker 2: Americans are confused about what it means to be a conservative.
Speaker 2: I'm very pleased to say the forty eighth Vice President
Speaker 2: of the United States, Mike Pence, joins us now for more.
Speaker 2: Mister Vice President. Welcome back to Bloomberg Surveillance on Bloomberg TV.
Speaker 2: Thank you great to be back on. It's good to
Speaker 2: see you, sir. I'll ask that question to you, what
Speaker 2: does it mean to be a conservative?
Speaker 3: Well, for decades, the Republican Party has really been the
Speaker 3: home of conservatism in this country. It's a commitment to
Speaker 3: limited govern free market economics, strong defense, American leadership in
Speaker 3: the world, and traditional values has really guided the Republican
Speaker 3: Party since Ronald Reagan came to the White House. And
Speaker 3: it's why I and millions of Americans were drawn to
Speaker 3: the Republican Party over the years. Our principal contest was
Speaker 3: against the liberal Democratic Party over those decades. But as
Speaker 3: the Democratic Party has been overtaken by more progressive left policies,
Speaker 3: including socialist policies, not just in New York but all
Speaker 3: around the country. I wrote the book because I wanted
Speaker 3: Republicans to know that there's a new threat to that
Speaker 3: conservative agenda within our movement from a populist right that
Speaker 3: would really challenge our commitment to limited government, to free enterprise,
Speaker 3: challenge America's role as leader of the free world, marginalized values.
Speaker 3: And I do think, as you quoted from the book,
Speaker 3: that many are confused about what it means to be
Speaker 3: a conservative. So that's what inspired what conservatives belief.
Speaker 5: Well, you served alongside him, of course in the first term.
Speaker 5: Was he a conservative?
Speaker 2: Then?
Speaker 3: Well I think, Look, I say this in the book.
Speaker 3: You know, I know Donald Trump better than his most
Speaker 3: ardent defenders. We worked together every day and spoke every
Speaker 3: day for four and a half years, and in fairness
Speaker 3: to the President, he's actually never said he was a conservative.
Speaker 3: In fact, I lost count of the number of times
Speaker 3: that I would say in conversations in the Oval office. Well,
Speaker 3: that position is a conservative position, and he would he
Speaker 3: would wave his hand and say, what conservative, It's just
Speaker 3: common sense and so. But in our administration, I will
Speaker 3: tell you I think we were very faithful in most
Speaker 3: cases to the traditional conservative agenda, appointing conservative judges, upholding
Speaker 3: the rule of law, and particularly in the area of
Speaker 3: free market and economics and free enterprise. We cut taxes,
Speaker 3: rolled back regulations, unleashed American energy. But on economic issues,
Speaker 3: I think it's becoming more apparent, particularly in the business
Speaker 3: community across this country, with the advent of broad based
Speaker 3: tariffs imposed on friend and foe alike that while they
Speaker 3: were turned back by the Supreme Court, we saw the
Speaker 3: news this morning of a new round of tariffs attempted
Speaker 3: by the USTR, the nationalization of American businesses with something
Speaker 3: we never countenance in our administration, is much more part
Speaker 3: of a traditional socialists thinking around the world. Price controls
Speaker 3: on pharmaceuticals and credit cards, these are I think these
Speaker 3: are policies that come out of the populous right amory
Speaker 3: and they represent a real shift. Now me, can I
Speaker 3: just say I think the second Trump administration has gotten
Speaker 3: a lot right, standing up to Iran, standing with Israel,
Speaker 3: extending those tax cuts, securing our border. But on some
Speaker 3: key issues, we've seen those populist right policies take hold.
Speaker 3: And I want conservatives around the country to know that.
Speaker 5: These are ideas that you'd hear from a Senator Elizabeth
Speaker 5: Warren or Senator Bernie Sanders. But the issue in Washington
Speaker 5: right now is there's a lot of people speaking out
Speaker 5: against this in Congress. Do you feel that Trump has
Speaker 5: gotten a lot more carte blanche this time around?
Speaker 3: Well, I think so. I mean, the president is the
Speaker 3: leader of the party, and with majorities in the Congress,
Speaker 3: I think there's been a tremendous amount of deference to
Speaker 3: the president. But you put a fine point on it.
Speaker 3: In fact, in my book, I point out when the
Speaker 3: president first announced a nationalization policy, it might have been
Speaker 3: the Golden chairs in US steel, Elizabeth Warren said memorably,
Speaker 3: Donald Trump has come across an idea that I came
Speaker 3: up with years ago, and John might argue with the
Speaker 3: nationalization with something Elizabeth Warren came up with. There might
Speaker 3: be a deeper history in other parts of the world,
Speaker 3: But I honestly believe that there's not been a great
Speaker 3: deal of awareness broadly among grassroots Americans about some of
Speaker 3: these shifts, but people are starting to wake up to it,
Speaker 3: and I hope my book is a part of that awakening.
Speaker 3: Not just because I think conservative policies are good for
Speaker 3: the Republican Party. It's because I believe freedom, free market economics,
Speaker 3: commitment to limited government, and American leadership in the world
Speaker 3: is good for America.
Speaker 1: To build on what Emory was talking about, though, we've
Speaker 1: seen recent primary elections and the people who are considered
Speaker 1: a bit more populist have been the winners of the
Speaker 1: Republican primary process. Those are the ones that have been
Speaker 1: backed by President Trump. He still has quite a bit
Speaker 1: of clout in getting those to Congress, to Washington, d C.
Speaker 1: He is, in many ways the Republican Party. Do you
Speaker 1: think that the Republican Party that you're talking about still exists?
Speaker 6: Oh? I do.
Speaker 3: And don't leave out his influence in primaries in Louisiana
Speaker 3: and Kentucky and Indiana, some state senate races in Indiana. Look,
Speaker 3: the President enjoys tremendous support among Republican primary voters, and
Speaker 3: I think it derives from the fact that from the
Speaker 3: time he came down that Golden escalator here in New
Speaker 3: York City. He has been willing to fight the radical left.
Speaker 3: He did it during our years together, he did it since,
Speaker 3: battled through law Fair, won back the White House. And
Speaker 3: I think there's a great appreciation by Republican voters for
Speaker 3: his continued fight against the radical left. But what I
Speaker 3: wrote the book for was just to make sure that
Speaker 3: we don't conflate the loyalty to the president, as some
Speaker 3: on the populous right would have an embrace of a
Speaker 3: new agenda for the Republican Party. I think the Republican
Speaker 3: Party has to be a party committed to free market
Speaker 3: economics and limited government and all the ideals and principles.
Speaker 3: I'm particularly troubled am read with your background on foreign affairs, particularly,
Speaker 3: I'm particularly troubled about the stops and starts on American
Speaker 3: support for Ukraine. It was the populous right, voices inside
Speaker 3: and outside the administration that actually argued against striking Iran's
Speaker 3: nuclear facilities a year ago and even launching Operation Epic Fury,
Speaker 3: and even more troubling to me, voices on the populace
Speaker 3: writer questioning America's support for Israel, and with that rhetoric
Speaker 3: actually descending at times into the dark hallways of anti Semitism. Look,
Speaker 3: that's not who conservatives are in this country. It's not
Speaker 3: what conservatives believe, and try and call it out in
Speaker 3: the book.
Speaker 2: Let's finish on one particular policy debate that I think
Speaker 2: we'll be at, defining policy debate for the next decade perhaps,
Speaker 2: and that's Ai. I've sat he wondering at times, what
Speaker 2: is the conservative position? What will the conservative position be?
Speaker 2: I know what the left will do and how they respond,
Speaker 2: tax redistribute, tax redistribute. What's the conservative position on that technology?
Speaker 2: What's it going to be? How evolved in the next
Speaker 2: ten years or so.
Speaker 3: Well, I encourage you to read my book, John, because you'll.
Speaker 2: See I'm just going to come.
Speaker 3: I think there is a Look, the conservative view would
Speaker 3: be that technology is neutral. It's neither good nor bad.
Speaker 3: I greatly admire the former chairman of Intel, who's written
Speaker 3: a wonderful book entitled ar Ai for Good. And I
Speaker 3: think it's imperative that as we move into this that
Speaker 3: we trust the marketplace, but that also we ensure that
Speaker 3: that artificial intelligence work for us in the way that
Speaker 3: we want it to impact our economies, in our workplace,
Speaker 3: and most importantly for conservatives is that it respects the values,
Speaker 3: the universal values of the overwhelming majority of the American
Speaker 3: people who believe in and cherish freedom and cherish the
Speaker 3: importance of family. You know, when you see troubling stories
Speaker 3: about the chat programs that actually assist teenagers in finding
Speaker 3: ways to take their own life, it's just tragic consequence.
Speaker 3: I think it's actually imperative the conservative step forward and
Speaker 3: say let's create the guardrails around AI so that consumers
Speaker 3: will have places to go for AI that really reflects
Speaker 3: our goals, our objectives, our values, and let the marketplace work.
Speaker 2: Yeah, that's what I'm kind of getting at. I can
Speaker 2: trust the market rump Limpack. I think that's a great
Speaker 2: tradition of support for free markets and limited government in
Speaker 2: our audience. At least, can we trust the leadership of
Speaker 2: these companies?
Speaker 3: Well, I think that's I think that's the real question today,
Speaker 3: and what we want to do is facilitate the emergence
Speaker 3: of alternatives within the marketplace. Look, I think the American
Speaker 3: people have understandably have concerns about AI, but have given
Speaker 3: the opportunity to spend their dollars and spend their business
Speaker 3: resources on AI that works for US and respects those
Speaker 3: universal values. I trust the American people will choose.
Speaker 1: Well.
Speaker 5: The one thing on AI to Jonathan's earlier point about
Speaker 5: what the left is going to do, Bernie Sanders says
Speaker 5: he wants to tax these companies fifty percent. Steve Bannon,
Speaker 5: which you know well from Trump's first term, one of
Speaker 5: his key architects of his rise and how Trump would speak,
Speaker 5: doesn't think Bernie Sanders goes far enough. Is that going
Speaker 5: to be the Republican position, whether you agree with it
Speaker 5: or not in twenty twenty eight.
Speaker 3: Republicans don't raise taxes, Republicans cut taxes, and would caution
Speaker 3: you against giving anybody too much credit for Donald Trump's
Speaker 3: rise other than Donald Trump. I mean this president from.
Speaker 5: Where the base is right now, Well, you.
Speaker 3: Know, I honestly think that when you talk about the base,
Speaker 3: which is one of my least favorite terms in politics,
Speaker 3: we talk about our core voters, that there's, as I
Speaker 3: said to Lisa, a great, great appreciation and affection for
Speaker 3: the president. It's totally understandable for the fight that he's
Speaker 3: waged against the radical left the last ten years. But
Speaker 3: on the populist right, there are voices that want to
Speaker 3: take that loyalty and permanently change the direction of the
Speaker 3: Republican Party to a big government party that embraces protectionism.
Speaker 3: Isolationism marginalizes values, and to put a fine point on it,
Speaker 3: I don't think that's what conservatives believe.
Speaker 2: When did you speak to each other?
Speaker 3: You know, we spoke shortly after he won re election
Speaker 3: and we had a war exchange.
Speaker 2: John, it was what did you talk about?
Speaker 3: I just congratulated him. Yeah, and I can tell he
Speaker 3: was moved by that, as was the first lady. Look,
Speaker 3: I uh, you know, President and I served together very closely.
Speaker 3: He wasn't just my president, he was my friend. Our
Speaker 3: administration didn't end the way I wanted it to, but
Speaker 3: I'll always believe, by God's grace, I did my duty
Speaker 3: that day. But you know, for me, it's I want
Speaker 3: this president to succeed. I love this country, and I
Speaker 3: don't talk to the president as often as I used to,
Speaker 3: but I get the distinct impression that he still listens
Speaker 3: to me, and so I hope he gets a chance.
Speaker 2: To I listened to you as well, and I promise
Speaker 2: you I'll read the book. It's coming next to the
Speaker 2: Thatcher biography on the Best Night Table all right to
Speaker 2: see a set. This is the Bloomberg's Events podcast, bringing
Speaker 2: you the best in markets, economics, ancient politics. You can
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Speaker 4: M