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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at

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Speaker 1: noon and five pm Eastern on Apple, Cockley and Android

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Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 2: President Trumger means in Scotland, where he's had a series

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Speaker 2: of big meetings, meeting yesterday with the EU Commissioned President

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Speaker 2: Ursula Vonderlon, inking a trade deal and averting thirty percent

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Speaker 2: tariffs being implemented on Friday, which of course is August first.

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Speaker 2: The EU now facing a fifteen percent terror free on

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Speaker 2: basically all of its exports to the United States, and

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Speaker 2: it's something that President Trump talked about today as he

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Speaker 2: had another round of meetings with the UK Prime Minister

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Speaker 2: Keir Starmer, who he's still with in fact as we speak,

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Speaker 2: noting of course that the UK and the US had

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Speaker 2: already reached a framework trade agreement much earlier on Europe

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Speaker 2: now next. Many other countries though, are hoping they will

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Speaker 2: be able to follow, knowing that Friday deadline is looming.

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Speaker 2: Here's how the President talked about it earlier today.

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Speaker 3: We're making inter great deals. We're making deals that are

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Speaker 3: good for us, but we want them to be good

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Speaker 3: for everybody. It's important. We're going to be setting a

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Speaker 3: tariff for essentially the rest of the world, and that's

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Speaker 3: what they're going to pay if they want to do

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Speaker 3: business in the United States.

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Speaker 4: We go live to the White House right now for more.

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Speaker 5: Bloomberg's Tyler Kendall, Bloomberg Washington correspondent, standing by with the

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Speaker 5: latest from the North lawn of the White House. Tyler,

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Speaker 5: we're all looking ahead to Friday, of course, the first

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Speaker 5: of August, but as Kaylee mentions, there's another deadline that's

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Speaker 5: twelfth of August when it comes to China. With tandem

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Speaker 5: talks underway here with this White House, what comes next?

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Speaker 3: Right exactly?

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Speaker 6: Joe and President Trump was asked about those talks with

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Speaker 6: China earlier today and he said, we're going to see

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Speaker 6: what happens now. The USTR Jamis and Greer, in an

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Speaker 6: interview earlier, gave us a little bit more color about

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Speaker 6: what the White House is expecting when it comes to

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Speaker 6: these discussion. He really amounted this to basically a check

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Speaker 6: in to make sure that both sides are upholding the

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Speaker 6: agreement that was reached in London, which he'll recall, was

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Speaker 6: really to uphold the agreement reached in Geneva when it

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Speaker 6: comes to some of those export controls around critical and

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Speaker 6: rare earth minerals as well as semiconductors and perhaps less

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Speaker 6: advanced chips. Our reporting does indicate that China has started

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Speaker 6: to ramp up its export licenses when it comes to

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Speaker 6: rare earths, and we've also seen the US start starting

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Speaker 6: to sort of loosen those restrictions, including in videos being

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Speaker 6: able to sell H twenty chips into Beijing. The next

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Speaker 6: phase here is really to make sure that the de

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Speaker 6: escalation continues. We are broadly expecting that they will extend

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Speaker 6: this August twelfth deadline. The Treasury Secretary Scott besen't said

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Speaker 6: as much on Bloomberg Television last week August twelfth and

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Speaker 6: then ninety days after that, because they seem to be

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Speaker 6: doing this in ninety day increments, but there are a

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Speaker 6: few threads where we could see potential progress here. The

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Speaker 6: Treasury Secretary said that they would expect and beyond export

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Speaker 6: controls and perhaps they would talk about curbing China's imports

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Speaker 6: when it comes to sanctioned Russian oil and then also

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Speaker 6: importantly fentanyl, because Joe and Keley, we have to keep

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Speaker 6: in mind about twenty percent of that tariff that's currently

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Speaker 6: in place against China is linked directly to the White

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Speaker 6: House's concerns around fentanyl. While China has denied its role

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Speaker 6: in its alleged role and fentanyl flows into the US,

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Speaker 6: we did see them take some steps last week to

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Speaker 6: curb two chemicals that are used in the opioid perhaps

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Speaker 6: seen as maybe a concession here to help keep talks

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Speaker 6: going forward.

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Speaker 2: All right, So that's the talks with China, Tyler, and

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Speaker 2: we'll see what the outcome of them ultimately is. Meanwhile,

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Speaker 2: we know what the outcome of the meeting between Ursula

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Speaker 2: Vonderlin of the European Commission and President Trump's meeting was,

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Speaker 2: which is that we have reached at least a framework

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Speaker 2: of a trade deal. Some details we have now gotten

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Speaker 2: from the White House walk us through.

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Speaker 6: It right exactly, and we have to keep in mind

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Speaker 6: this is a really consequential deal for this White House

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Speaker 6: just by sheer volume, Kayley, right, the EU makes up

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Speaker 6: about twenty percent of US annual imports into this country.

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Speaker 6: So this was really something that ultimately was prioritized in

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Speaker 6: these talks, despite at the beginning we were really told

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Speaker 6: that the EU would be last in line for a deal.

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Speaker 6: Now our understanding is there's going to be that fifteen

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Speaker 6: percent baseline tariff, and it actually does include some really

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Speaker 6: key sector specific tariffs, including autos about a thirty five

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Speaker 6: billion dollar import industry from the EU to the US.

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Speaker 6: That was a really critical area that the EU wanted

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Speaker 6: to see some relief on, but it also extends to

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Speaker 6: pharmaceuticals as well as chips, really importantly to distinguish though,

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Speaker 6: we did get a fact sheet kicked out by the

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Speaker 6: USTR Jamison Greer's office just moments ago which really does

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Speaker 6: clarify that steel and aluminum tariffs will remain at fifty

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Speaker 6: percent for now, but they do say that they are

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Speaker 6: going to work on their supply chains and cooperation going forward,

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Speaker 6: because our understanding from the EU side was that these

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Speaker 6: metals would be tariff under a lower level, under a

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Speaker 6: certain quota, under a certain amount before it snapped back

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Speaker 6: up to fifty percent. So we're still waiting for some

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Speaker 6: key details there. But in order for the EU to

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Speaker 6: clinch these lower rates, they did have to put in

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Speaker 6: some sweeteners that include six hundred billion dollars worth of investment,

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Speaker 6: as well as seven hundred and fifty billion dollar pledge

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Speaker 6: for US energy. It's probably worth pointing out that the

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Speaker 6: EU had been ramping up its imports of US LG

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Speaker 6: already to account for US steering away from Russian energy imports,

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Speaker 6: for example. And then the last one I'll leave you

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Speaker 6: too with is that President Trump says that the EVE

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Speaker 6: is going to start importing vast amounts of us A

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Speaker 6: defense equipment. This is something that we were widely expecting,

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Speaker 6: since we know that the US has been calling on

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Speaker 6: our European allies to boost their defense expenditures in the

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Speaker 6: wake of the war with Ukraine.

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Speaker 5: Really interesting, Tyler just quickly left wanting our European wine

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Speaker 5: and spirits makers. They apparently decided to move this to

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Speaker 5: another day to figure out what would happen to this

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Speaker 5: very important industry for Europe. They're calling for a sector

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Speaker 5: specific carve out here an exemption. Do we have any

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Speaker 5: sense of when and that will be managed, when that'll

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Speaker 5: be dealt with At this point.

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Speaker 6: We're still awaiting a details. But Joe, I know that

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Speaker 6: you've spoken to quite a few European ambassadors about this

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Speaker 6: exact issue, because this really is a huge industry for

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Speaker 6: Europe and you'll recall actually one of the first tear

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Speaker 6: threats against the European Union was against alcohol, wines and spirits,

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Speaker 6: back before we even had the escalation to that fifty

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Speaker 6: percent rate. So this is something that's really been a

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Speaker 6: thread throughout and that we're going to have to watch

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Speaker 6: very closely. But President Trump, as you mentioned, was asked

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Speaker 6: about it earlier today.

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Speaker 2: You can always trust Joe Matthew to be on top

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Speaker 2: of the wine story and Tyler Kendall to be on

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Speaker 2: top of everything out of the White House where she

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Speaker 2: reports for us here on Blimberg TV and Radio. Thank

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Speaker 2: you so much, And we want to get more into

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Speaker 2: the actual detail of this trade agreement that has been

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Speaker 2: reached with Europe, the trade agreements we have yet to see,

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Speaker 2: and what it all means for companies that are actually

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Speaker 2: trying to navigate this environment and figure out what it

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Speaker 2: means for imports and exports. As we turned to Michelle Schultz,

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Speaker 2: she's founder and managing partner of Schultz Trade Law and

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Speaker 2: specializes essentially in helping corporations comply with things like this.

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Speaker 2: Michelle great to have you here on balance of power.

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Speaker 2: When we consider even the deal that we've got with

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Speaker 2: the European Union and the readout we now have, it

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Speaker 2: really is broad strokes of a deal. We're missing a

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Speaker 2: lot of granular detail here, and I wonder how corporations

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Speaker 2: are dealing with that. Is this actually enough information to

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Speaker 2: work with to make investment and purchasing decisions off of.

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Speaker 7: I do not believe it's exactly enough information to make

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Speaker 7: decisions based off of. And we have already lost a

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Speaker 7: lot of trust with our partners in the EU. Our

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Speaker 7: clients are in different sectors like aerospace, oil and gas,

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Speaker 7: food and wine, gourmet food, and they have been pivoting

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Speaker 7: each time the tariffs get adjusted. We didn't expect this

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Speaker 7: adjustment so soon. But we have to keep in mind

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Speaker 7: that even though it's fifteen percent on about seventy percent

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Speaker 7: of the products, the tariffs on steel, aluminum, copper still

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Speaker 7: apparently will be at fifty percent, and that includes derivatives.

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Speaker 7: So when we're talking about details, I've got this book

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Speaker 7: behind me. That's the Harmonized Tariff Schedule. That is the

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Speaker 7: perfect example of how detailed these rules get. Each item

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Speaker 7: is listed in there, and so we need to check

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Speaker 7: each item and see if it's subject to tariffs and

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Speaker 7: how high.

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Speaker 5: Well, so, what kind of conversations are you having with

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Speaker 5: these clients that you mentioned, because there seems to be

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Speaker 5: a feel in Europe today. I don't know if this

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Speaker 5: is the case in China that while there are elements

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Speaker 5: of this deal that are clearly favoring the United States,

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Speaker 5: at last we have certainty when it comes to tariff levels.

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Speaker 5: The fact that we might not like fifteen percent, but

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Speaker 5: at least we know it's fifteen percent. Does that resonate

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Speaker 5: with your clients.

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Speaker 7: It does in the sense that it is one set number,

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Speaker 7: but it's a little bit misleading because we have layers

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Speaker 7: of different types of tariffs that are all going on,

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Speaker 7: like the steel and aluminium tariffs. Also, all twenty seven

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Speaker 7: countries within the EU have to sign off on this agreement,

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Speaker 7: and I haven't seen them do that yet. In fact,

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Speaker 7: I've seen a little bit of negative feedback from the

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Speaker 7: Prime Minister of France and Hungary as well, I believe.

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Speaker 7: So we're gonna have to wait and see if all

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Speaker 7: the EU members agree to this. It seems to me

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Speaker 7: that Ursula vonderlyin was correct when she said this is

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Speaker 7: essentially the best we're going to get it. It's good,

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Speaker 7: but it's not great. Fifteen percent across the board is

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Speaker 7: still higher than we're used to and I'm really hoping

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Speaker 7: that this reduction will include zero percent tariffs both ways

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Speaker 7: on aircraft and aircraft parts, which has been mentioned, but

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Speaker 7: we don't have anything in writing. We don't have a

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Speaker 7: written agreement with that level of detail.

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Speaker 2: Yeah, there's a lot that we have yet to see

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Speaker 2: pen actually put to paper on Michelle. When we consider

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Speaker 2: what the whole point of these tariffs are, yes, and

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Speaker 2: part it to balancing the trade deficit with the US.

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Speaker 2: Hence y Europe is agreeing to make more purchases of

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Speaker 2: US goods like military equipment and the life. But the

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Speaker 2: President also contends that a lot of this is about

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Speaker 2: on shoring supply as well. Are companies that you're speaking

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Speaker 2: with finding the ability to do that very quickly, to

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Speaker 2: replace supply that may come from somewhere else that they're

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Speaker 2: currently importing and try to just get it domestically in

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Speaker 2: the United States? How long does that process actually take

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Speaker 2: to find those alternative roots if they're available at all.

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Speaker 7: If they're available at all, it takes a very long time.

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Speaker 7: We have clients in every industry that are importing from

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Speaker 7: virtually every major country in Europe, and it is not

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Speaker 7: a fast process to find another supplier. Same with China.

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Speaker 7: A lot of suppliers had already moved from China, so

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Speaker 7: they moved to Vietnam, or the importer might have moved

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Speaker 7: its manufacturer somewhere like Mexico when the very first China

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Speaker 7: tariffs came out under Section three oh one under President Biden.

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Speaker 7: But then they had to pivot because now the Mexico

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Speaker 7: tariffs are up. So what our clients are doing is

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Speaker 7: pivoting as best they can and saving as best they can.

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Speaker 7: But some of them will go out of business if

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Speaker 7: tariffs continued to rise. And I think we have to

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Speaker 7: remember that this is still an increase. It's a decrease

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Speaker 7: from what was threatened, but it is still an overall

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Speaker 7: increase in tariffs for everyone.

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Speaker 5: You mentioned the French Prime Minister Michelle Francois Biru on

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Speaker 5: x writing it's a dark day when an alliance of

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Speaker 5: free peoples united who affirm their values and defend their

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Speaker 5: interests resolves to submission.

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Speaker 4: What's he talking about?

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Speaker 7: Oh wow, Yes, So the Europeans were hoping for a

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Speaker 7: lower tariff frey overall, they were hoping for a friendlier

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Speaker 7: deal than we gave them, especially given our history with Europe.

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Speaker 7: They had thrown out the number of ten percent at

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Speaker 7: one point, and I thought that maybe that would have

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Speaker 7: been more reasonable in the eyes of the European countries,

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Speaker 7: But they see fifteen percent as still quite high and

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Speaker 7: a slap in the face. It will impact trade, and

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Speaker 7: it will be a cost to the US importers. So

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Speaker 7: it still presents a challenge, and it still presents an increase,

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Speaker 7: and I think that some of the European leaders are disappointed.

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Speaker 2: Well beyond the deal with just Europe, where I don't

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Speaker 2: think I saw any mention of transshipping Michelle. We have

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Speaker 2: seen that mentioned in others, including the agreement that was

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Speaker 2: reached with Vietnam. The idea that there would be even

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Speaker 2: a higher tariff rate on transship goods that are coming

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Speaker 2: indirectly from China. I just wonder how hard that actually

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Speaker 2: is to track and follow. How do we actually know

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Speaker 2: where products are originating from if they're coming into the

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Speaker 2: US under cargo vessels with a different flag. How difficult

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Speaker 2: is that, especially for importers to try to navigate.

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Speaker 7: It's actually quite difficult, and we have been in the

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Speaker 7: weeds of doing due diligence on suppliers and their suppliers

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Speaker 7: and their suppliers and their suppliers, and it's more and

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Speaker 7: more difficult, to the point where companies are using software tools.

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Speaker 7: We have three at least that we're using right now

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Speaker 7: in order to ferret out who owns what and who

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Speaker 7: is sending what from where. But to determine that something

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Speaker 7: is not made with slave labor, for example in the

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Speaker 7: Shinjang region, we have to go way back into the

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Speaker 7: supply chain. And you can't always rely on manufacturer Zaffa

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Speaker 7: davits because they may or may not be true and correct,

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Speaker 7: so you really have to go behind and do due

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Speaker 7: diligence behind the paperwork. It's becoming more and more difficult.

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Speaker 7: And I'll add that on the export side, the Commerce

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Speaker 7: Department has been throwing around a fifty percent rule similar

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Speaker 7: to ohfact, the Office of ourgn Assets controls fifty percent rule,

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Speaker 7: which would mean on the export side, we're also going

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Speaker 7: to have to look at ownership, who owns what, and

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Speaker 7: what's percentage. It's very difficult from a practical perspective.

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Speaker 5: We've got about a minute left, Michelle, How worried are

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Speaker 5: you that this White House is too eager to reach deals,

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Speaker 5: to announce deals to the markets and to others who

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Speaker 5: were promised all of these amazing trade deals, too eager

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Speaker 5: to follow up on the details that you're talking about,

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Speaker 5: never mind make good on national security promises.

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Speaker 4: When it comes to high tech chips.

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Speaker 7: I believe they can do it. I'm somewhat optimistic that

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Speaker 7: they can do it. But it takes months, if not years,

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Speaker 7: normally to negotiate a trade agreement, and so this is

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Speaker 7: way out of line with your typical free trade agreement internationally.

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Speaker 7: This is a deal, and it's really a deal in

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Speaker 7: the sense of a deal. We've got some purchases that

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Speaker 7: the European Union's going to make, and the details as

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Speaker 7: far as which tariff numbers, what tariff codes, those aren't

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Speaker 7: all clear. Yet we still have steal an aluminum. I

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Speaker 7: do think the White House has been a bit eager

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Speaker 7: to show its success, and that's great. It's a step

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Speaker 7: in the right direction. But I don't think that our

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Speaker 7: allies and other countries are pleased with it quite yet.

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Speaker 4: Michelle.

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Speaker 5: It's great to have you with us. Let's stay close

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Speaker 5: on this. We have a lot more to talk about.

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Speaker 5: Thanks for joining our conversation today. Michelle Schultz, Founder managing

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Speaker 5: partner Schultz Trade Law. Really interesting to get inside an

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Speaker 5: operation that's dealing directly with the stakeholders.

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Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch

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Speaker 1: us live weekdays at noon and five pm. E's durn

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Speaker 1: on Apple Coarclay and Android Auto with the Bloomberg Business App.

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Speaker 1: flagship New York station, Just say Alexa play Bloomberg eleven thirty.

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Speaker 5: Thanks for being with us on the Monday edition of

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Speaker 5: Balance of Power on Bloomberg TV and Radio. I'm Joe

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Speaker 5: Matthew alongside Kaylee Lines. Who's back with us today. I'm

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Speaker 5: glad to say as we talk politics here in the

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Speaker 5: nation's capital, and it's not very often that a politician

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Speaker 5: breaks through into the main stream without spending a lot

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Speaker 5: of money or doing something wrong. Case in point, James Tallerico,

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Speaker 5: a member of the Texas House of Representatives, a Democrat,

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Speaker 5: a pastor, and a former teacher, is now being considered

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Speaker 5: a potential threat to flip a Republican Senate seat blue

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Speaker 5: if he, of course, decides to run for it. Kayley,

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Speaker 5: this is an individual I'll get personal here for a moment,

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Speaker 5: who both of our spouses asked us about without prompt unsolicited,

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Speaker 5: which is something that never happens, by the way, in

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Speaker 5: either of our homes. We don't really talk politics right

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Speaker 5: when we go home at the kitchen table. But James

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Speaker 5: Tallerico was viral before he did the Rogan interview when

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Speaker 5: he talked about the Ten Commandments in schools.

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Speaker 4: He's a TikTok sensation.

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Speaker 5: He is now apparently a Joe Rogan sensation, and a

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Speaker 5: lot of smart people in Washington are asking if, in

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Speaker 5: fact he could be the future of the Democratic Party.

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Speaker 8: Yeah.

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Speaker 2: In fact, Joe Rogan is hoping he might one day run.

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Speaker 5: For president, Isn't that right?

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Speaker 2: Which is obviously an endorsement that would be highly coveted

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Speaker 2: by many as we know the influence Joe Rogan particularly

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Speaker 2: has in politics, but especially as we consider what is

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Speaker 2: a changing landscape in Texas with a redistricting fight underway,

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Speaker 2: with as you mentioned, of course, a Senate seat potentially

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Speaker 2: up for grabs John Cornyn getting primaried by Ken Paxton.

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Speaker 2: Many democrats considering throwing their hats in the ring if

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Speaker 2: they haven't done so already, makes a unique moment in

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Speaker 2: time to.

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Speaker 9: Speak with mister Tellerica.

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Speaker 5: Yeah, well, that's for sure, this which is why we

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Speaker 5: reached out to James. Look at James Tallerico in the

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Speaker 5: act I mentioned he's a pastor talking about the confluence

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Speaker 5: of his religious beliefs and policy.

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Speaker 4: Listen on Bloomberg.

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Speaker 9: What would Jesus do about a tax system that benefits

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Speaker 9: the rich over the poor?

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Speaker 4: What would Jesus do.

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Speaker 9: About a healthcare system that forces the sick to start

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Speaker 9: go fund me pages to afford life saving surgeries? What

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Speaker 9: would Jesus do about an education system that ties a

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Speaker 9: child school funding to their community's property wealth. Would he

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Speaker 9: stay in his room and pray? Or would he walk

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Speaker 9: into the seat of power and flip over the tables

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Speaker 9: of injustice?

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Speaker 2: A taste of James Tallerico's messaging, and he's joining us

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Speaker 2: now on Bloomberg TV and Radio for more. Appreciate the time, James,

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Speaker 2: Thank you so much for being with us. What do

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Speaker 2: you think it is about the way in which you

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Speaker 2: are trying to convey what aren't in some instances political

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Speaker 2: messages leaning on your Christian faith and kind of biblical

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Speaker 2: readings of policy issues that seems to be resonating in

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Speaker 2: a way that other Democrats from Texas have struggled to

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Speaker 2: see themselves resonate in recent years.

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Speaker 9: Well, thank y'all for having me on, and please thank

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Speaker 9: your spouses too for recommending to you. You know, I

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Speaker 9: think people are hungry for authentic moral leadership in this country,

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Speaker 9: and I think folks just want elected officials who are

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Speaker 9: themselves and who are honest and speak directly and clearly.

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Speaker 9: That's I think what this exposes. Folks are tired of

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Speaker 9: the kind of consultant driven, poll tested political sound bites,

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Speaker 9: and they want people who are just going to speak

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Speaker 9: like a human being. And that's what I try to

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Speaker 9: do every day, whether it's you know, at a podium

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Speaker 9: or a pulpit, whether it's as an elected official or

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Speaker 9: as a as a member of the clergy.

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Speaker 5: Authentic moral leadership, pastor tall a Rico makes you a

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Speaker 5: contrarian in this political world, if not a UNI considering

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Speaker 5: your background.

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Speaker 4: We're in a.

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Speaker 5: World where sharp elbows work here in Washington, where the

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Speaker 5: pressure play works, we're bullying works, We're name calling is

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Speaker 5: now considered commonplace. Par For the course, a lot of

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Speaker 5: people would ask how someone who considers themselves a man

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Speaker 5: of God, someone who acts as a gentleman, has any

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Speaker 5: place in this political world.

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Speaker 9: Well, one of my favorite verses in Scripture is Matthew

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Speaker 9: five five the meek shall inherit the earth, meaning you know, violence, bullying, aggression.

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Speaker 9: Those things may work in the short run, and I

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Speaker 9: think that's what you're seeing in our political discourse. It

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Speaker 9: gets you a temporary bump in your followers or in

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Speaker 9: your cable TV viewership, or maybe even gets you elected

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Speaker 9: in the next election, but it doesn't work in the

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Speaker 9: long run. In the long run, I think people want honesty,

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Speaker 9: they want compassion, they want understanding, and so I'm placing

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Speaker 9: my long term bet on those values. I honestly think

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Speaker 9: over the last ten years of our politics, people are

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Speaker 9: just sick of the blood sport, and they're sick of

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Speaker 9: the way that politics feels like professional wrestling a lot

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Speaker 9: of the times. And I'm hoping that earnestness and sincerity

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Speaker 9: are going to make a comeback in our politics, at

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Speaker 9: least I hope so.

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Speaker 7: Well.

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Speaker 2: And it's one thing to consider our politics along party

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Speaker 2: lines and partisan divides, but there are also deep divides

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Speaker 2: within the parties themselves. You need look no further than

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Speaker 2: Texas As. I'm sure you well know the primary and

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Speaker 2: the Republican on the Republican side for the Senate seat

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Speaker 2: between Ken Paxton and the incumbent Senator Cornyn. Are you

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Speaker 2: worried that, as you consider a potential Senate run yourself,

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Speaker 2: that a Democratic primary could potentially be just as damaging.

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Speaker 9: I don't think it has to be. You know, primary

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Speaker 9: election can be a good thing, especially if both candidates

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Speaker 9: go about it in a respectful way. You know, it

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Speaker 9: should be a contest of ideas, you know, I think

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Speaker 9: we saw in the last election the consequences of not

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Speaker 9: having a competitive primary. Those primaries make us better as

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Speaker 9: candidates and.

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Speaker 4: As a party.

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Speaker 9: I think that's true on both sides of the aisle.

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Speaker 9: I think elections are always a good thing. Competition in

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Speaker 9: politics is always a good thing, and I'm hoping that's

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Speaker 9: true in this upcoming primary here in Texas well.

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Speaker 5: Are you thinking about running for Senate? Is that a

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Speaker 5: real story and what's going into your consideration If that's

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Speaker 5: the case.

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Speaker 9: I am thinking about it. But if I'm being very honest,

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Speaker 9: with you. You know, my entire focus is really on the

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Speaker 9: special legislative session that's just been called here in Texas.

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Speaker 9: I'm sure you've covered this, but the President has asked

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Speaker 9: our governor Greg Abbott to find him five more congressional seats.

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Speaker 9: He wants to redraw the political maps in the middle

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Speaker 9: of the day decade to try to protect his majority

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Speaker 9: in the next election, regardless of how we all vote.

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Speaker 9: And I just I think this is politics that's worst.

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Speaker 9: You know, politicians picking their voters instead of voters picking

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Speaker 9: their politicians. And so I'm doing everything I possibly can

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Speaker 9: to stop this, this jerry mander from going through, to

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Speaker 9: stop this power grap from going through. I was elected

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Speaker 9: by my constituents here in Central Texas to fight for

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Speaker 9: them to the state capitol. That's what I'm going to

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Speaker 9: do before I start thinking about other elected positions.

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Speaker 2: Well, if you view that as politics as it's at

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Speaker 2: its worst, would it be a mistake for blue states

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Speaker 2: like California or New York to try to follow Texas's

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Speaker 2: lead and reclaim some more state seats for Democrats.

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Speaker 9: I think the idea of every state being jerrymandered is

439
00:23:47,119 --> 00:23:51,159
Speaker 9: a terrible vision for this country. That said, I do

440
00:23:51,320 --> 00:23:53,520
Speaker 9: know that you have to stand up to bullies. You

441
00:23:53,600 --> 00:23:56,760
Speaker 9: can't just lie down and let them win. And so

442
00:23:56,920 --> 00:23:59,440
Speaker 9: I do think that we need folks who are willing

443
00:23:59,440 --> 00:24:02,960
Speaker 9: to match energy, But we cannot lose sight of the

444
00:24:03,040 --> 00:24:07,000
Speaker 9: ultimate goal, and that is fair elections in every state,

445
00:24:07,160 --> 00:24:10,480
Speaker 9: fair maps in every state. I mean, every single state

446
00:24:10,520 --> 00:24:14,119
Speaker 9: in this country should have an independent, citizen led redistrict

447
00:24:14,119 --> 00:24:17,080
Speaker 9: and commission that takes the power to draw these maps

448
00:24:17,119 --> 00:24:19,800
Speaker 9: out of the hands of politicians and puts it into

449
00:24:19,840 --> 00:24:21,680
Speaker 9: the hands of the people that we seek to represent.

450
00:24:22,160 --> 00:24:24,920
Speaker 9: So while we need to stand up to folks who

451
00:24:24,920 --> 00:24:27,440
Speaker 9: are trying to grab on to power like the President

452
00:24:27,480 --> 00:24:30,239
Speaker 9: is currently trying to do, we can't lose sight of

453
00:24:30,240 --> 00:24:33,960
Speaker 9: the ultimate vision, which is making sure that every state

454
00:24:34,040 --> 00:24:37,000
Speaker 9: has fair maps and fair representation for all Americans.

455
00:24:38,040 --> 00:24:41,320
Speaker 5: Will you join other Democrats in leaving the state from

456
00:24:41,440 --> 00:24:43,040
Speaker 5: keeping the majority from doing this?

457
00:24:43,160 --> 00:24:43,760
Speaker 4: In Texas?

458
00:24:44,960 --> 00:24:47,199
Speaker 9: Well, you know we're in the minority as Democrats here

459
00:24:47,200 --> 00:24:49,000
Speaker 9: in the Texas Legislature. We've been in the minority for

460
00:24:49,080 --> 00:24:52,520
Speaker 9: a long time, and so we've had to figure out

461
00:24:52,560 --> 00:24:55,640
Speaker 9: how to use every tool in our toolbox. You know,

462
00:24:55,680 --> 00:24:59,600
Speaker 9: whether that's the rules, whether it's our platforms or whether

463
00:24:59,640 --> 00:25:04,320
Speaker 9: it is denying quorum. That's obviously a dramatic step, and

464
00:25:04,359 --> 00:25:06,639
Speaker 9: it's one that shouldn't be taken lightly. You know, we

465
00:25:06,680 --> 00:25:09,399
Speaker 9: haven't even seen the maps here in Texas yet, and

466
00:25:09,480 --> 00:25:11,879
Speaker 9: so I don't want to rush to any conclusions, but

467
00:25:11,960 --> 00:25:13,560
Speaker 9: I will just tell you that I think it's fair

468
00:25:13,600 --> 00:25:16,520
Speaker 9: to say that my Democratic colleagues and I are willing

469
00:25:16,520 --> 00:25:19,240
Speaker 9: to do whatever it takes to stop this power grab

470
00:25:19,520 --> 00:25:23,480
Speaker 9: and to protect the democratic process here in Texas and

471
00:25:23,920 --> 00:25:27,320
Speaker 9: around the country, because if President Trump succeeds with this

472
00:25:27,400 --> 00:25:30,000
Speaker 9: power grab in Texas, I worry that he will do

473
00:25:30,040 --> 00:25:32,240
Speaker 9: the same thing in every red state across the country,

474
00:25:32,280 --> 00:25:36,320
Speaker 9: which would essentially rig the twenty twenty six midterms. And so,

475
00:25:36,400 --> 00:25:39,000
Speaker 9: regardless of your party, whether you're a Democrat or Republican

476
00:25:39,080 --> 00:25:43,000
Speaker 9: or an independent, none of us want politicians in Washington

477
00:25:43,119 --> 00:25:45,879
Speaker 9: silencing our voices and rigging the next election.

478
00:25:48,200 --> 00:25:51,560
Speaker 5: We'd love to have you back, James Tallerrico, When are

479
00:25:51,560 --> 00:25:54,800
Speaker 5: you planning to make up your mind for this Senate race?

480
00:25:55,600 --> 00:25:57,959
Speaker 9: Well, I'd love to come back. You know, the special

481
00:25:58,000 --> 00:26:00,600
Speaker 9: legislative session is going to last until the end of August.

482
00:26:01,560 --> 00:26:04,359
Speaker 9: That's assuming another one won't be called right after that.

483
00:26:04,840 --> 00:26:07,639
Speaker 9: So as long as I'm being called to do my

484
00:26:07,800 --> 00:26:10,080
Speaker 9: job as a state representative here in the state Capitol,

485
00:26:10,080 --> 00:26:12,280
Speaker 9: That's what I'm going to be doing. But once that's over,

486
00:26:12,440 --> 00:26:14,880
Speaker 9: I'll be looking at how I can best continue my service,

487
00:26:15,680 --> 00:26:17,840
Speaker 9: and that may include running for another office in twenty

488
00:26:17,920 --> 00:26:18,360
Speaker 9: twenty six.

489
00:26:19,200 --> 00:26:20,760
Speaker 4: Yeah, let us know when you make up your mind.

490
00:26:20,760 --> 00:26:22,399
Speaker 4: We want to continue our conversation with you.

491
00:26:22,480 --> 00:26:26,000
Speaker 5: James Telerico, Texas House of Representatives Democrat, who you've been

492
00:26:26,000 --> 00:26:26,760
Speaker 5: hearing so much about.

493
00:26:26,840 --> 00:26:28,600
Speaker 4: We thought we'd bring him to you here on Balance

494
00:26:28,600 --> 00:26:29,000
Speaker 4: of Power.

495
00:26:32,280 --> 00:26:35,760
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch

496
00:26:35,800 --> 00:26:38,800
Speaker 1: us live weekdays at noon and five pm Eastern on

497
00:26:38,960 --> 00:26:42,240
Speaker 1: almal Coarckley and Android Auto with the Bloomberg Business app.

498
00:26:42,400 --> 00:26:45,600
Speaker 1: Listen on demand wherever you get your podcasts, or watch

499
00:26:45,720 --> 00:26:48,160
Speaker 1: us live on YouTube.

500
00:26:48,680 --> 00:26:52,040
Speaker 5: Under the heat Dome here in the Amtrak corridor from

501
00:26:52,240 --> 00:26:55,640
Speaker 5: Washington to New York. It's going to be another sweltering week.

502
00:26:55,800 --> 00:26:58,800
Speaker 5: Pretty good strategy, most people will admit for Donald Trump

503
00:26:58,840 --> 00:27:03,199
Speaker 5: to get out of the bubble, get overseas, get out

504
00:27:03,280 --> 00:27:05,800
Speaker 5: of the way of the whole Epstein's story. Let your

505
00:27:05,800 --> 00:27:10,040
Speaker 5: lieutenants leave town. They're in Stockholm, Scott Besson's talking to China,

506
00:27:10,320 --> 00:27:14,800
Speaker 5: Howard Lutnik and so forth. House lawmakers are gone set

507
00:27:14,840 --> 00:27:19,240
Speaker 5: to defend their record here from a summer of legislating,

508
00:27:19,240 --> 00:27:22,400
Speaker 5: when they hold town hall meetings, catch up with the family,

509
00:27:22,600 --> 00:27:24,760
Speaker 5: do a little bit of fundraising, and then when they

510
00:27:24,800 --> 00:27:27,760
Speaker 5: all come back, it'll be a big sprint to the

511
00:27:27,800 --> 00:27:31,400
Speaker 5: government funding deadline on September thirtieth. And you know they're

512
00:27:31,400 --> 00:27:33,880
Speaker 5: already talking about a possible shut down. We hear about

513
00:27:33,920 --> 00:27:36,560
Speaker 5: it every day around here. So we take a break

514
00:27:36,560 --> 00:27:39,040
Speaker 5: this week and it allows us to have some bigger

515
00:27:39,119 --> 00:27:42,760
Speaker 5: picture ideas. Although let's not be mistaken, this is going

516
00:27:42,800 --> 00:27:45,119
Speaker 5: to be a very busy week in Washington. While there

517
00:27:45,119 --> 00:27:46,879
Speaker 5: are a lot of people around, the news is going

518
00:27:46,960 --> 00:27:48,960
Speaker 5: to be flying. We don't only have trade deals coming

519
00:27:49,000 --> 00:27:51,960
Speaker 5: from overseas here. We have a trade deadline to cap

520
00:27:52,000 --> 00:27:54,280
Speaker 5: the week on Friday, that's August one, right.

521
00:27:54,320 --> 00:27:56,800
Speaker 4: This was the end of the road here.

522
00:27:57,000 --> 00:28:00,040
Speaker 5: When it comes to reciprocal tariffs, and that's why a

523
00:28:00,119 --> 00:28:02,680
Speaker 5: lot of countries have been coming to the table. Of course,

524
00:28:02,720 --> 00:28:05,439
Speaker 5: we had the EU over the weekend. The presidents in

525
00:28:05,480 --> 00:28:11,000
Speaker 5: Scotland sat down with the President of the European Commission

526
00:28:11,240 --> 00:28:13,480
Speaker 5: Ursula vonder lyon and had something to show for it.

527
00:28:13,480 --> 00:28:14,880
Speaker 4: Here's Donald Trump from yesterday.

528
00:28:15,800 --> 00:28:18,359
Speaker 3: We've reached a deal. I think you were saying, this

529
00:28:18,440 --> 00:28:21,840
Speaker 3: is probably the biggest deal ever reached in any capacity.

530
00:28:21,960 --> 00:28:24,639
Speaker 10: We have a deal, and it's a big deal.

531
00:28:24,680 --> 00:28:28,720
Speaker 11: It's a huge deal. It's fifteen percent tariffs across the board,

532
00:28:28,800 --> 00:28:30,240
Speaker 11: all in inclusive.

533
00:28:30,440 --> 00:28:32,159
Speaker 4: I think it's the biggest deal ever made. Thank you

534
00:28:32,280 --> 00:28:38,000
Speaker 4: very much, the biggest deal ever made. A big deal,

535
00:28:38,040 --> 00:28:39,120
Speaker 4: A huge deal. She said.

536
00:28:39,160 --> 00:28:42,960
Speaker 5: She clearly knows how to talk to Donald Trump. But

537
00:28:43,120 --> 00:28:45,840
Speaker 5: this was supposed to be the elusive deal right the EU.

538
00:28:45,920 --> 00:28:50,120
Speaker 5: They weren't getting along. Now we've got both. Look, they

539
00:28:50,160 --> 00:28:53,160
Speaker 5: both used the word deal, at least a framework agreement.

540
00:28:54,120 --> 00:28:57,840
Speaker 5: Here's the thing, though, they did not figure out the wine.

541
00:28:57,960 --> 00:28:59,760
Speaker 5: And we're going to have some time to explore this

542
00:28:59,800 --> 00:29:02,600
Speaker 5: on that program this week. The wine tariffs. Remember Donald

543
00:29:02,600 --> 00:29:07,680
Speaker 5: Trump promised two hundred percent on wine, champagne and spirits

544
00:29:08,320 --> 00:29:12,560
Speaker 5: coming from Europe. Some of us may have even bought

545
00:29:12,600 --> 00:29:15,640
Speaker 5: cases of wine in advance of those tariffs taking hold,

546
00:29:15,720 --> 00:29:18,240
Speaker 5: but they're still not there, and they did not agree

547
00:29:18,240 --> 00:29:20,000
Speaker 5: on what the number would be today, So we have

548
00:29:20,080 --> 00:29:24,840
Speaker 5: to come back around on the grape juice and we will. Yeah,

549
00:29:25,000 --> 00:29:29,360
Speaker 5: ed biggest deal ever made, ever made, said Donald Trump.

550
00:29:31,040 --> 00:29:33,960
Speaker 5: Now we talk about context a lot here on Bloomberg.

551
00:29:34,000 --> 00:29:36,080
Speaker 5: That's what we offer you. That's why you tune into

552
00:29:36,120 --> 00:29:38,400
Speaker 5: the broadcast other than to hang out with your friends

553
00:29:38,400 --> 00:29:39,280
Speaker 5: here in Washington.

554
00:29:40,200 --> 00:29:42,960
Speaker 4: And we're going to seek some context with the help of.

555
00:29:42,960 --> 00:29:45,720
Speaker 5: Christopher Smart because it's not only the trade deals happening.

556
00:29:45,720 --> 00:29:47,480
Speaker 5: We just hit that We've got a lot of economic

557
00:29:47,600 --> 00:29:50,000
Speaker 5: data this week. Yeah, We've got a jobs report coming

558
00:29:50,080 --> 00:29:54,440
Speaker 5: a new month on Friday, and a FED meeting. Remembering

559
00:29:54,520 --> 00:29:57,280
Speaker 5: last time we met, Donald Trump and j Powell had

560
00:29:57,320 --> 00:30:01,160
Speaker 5: hard hats on and that incredible display over at the

561
00:30:01,200 --> 00:30:05,120
Speaker 5: Ecchos building here in Washington. His news conference following the

562
00:30:05,160 --> 00:30:07,560
Speaker 5: FED meeting and following that event and the pressure from

563
00:30:07,560 --> 00:30:11,280
Speaker 5: Donald Trump is going to be fascinating. Christopher Smartest, founder

564
00:30:11,280 --> 00:30:14,880
Speaker 5: and managing partner of our Growth Group, former Special Assistant

565
00:30:14,920 --> 00:30:18,000
Speaker 5: to the President at the National Economic Council during the

566
00:30:18,040 --> 00:30:21,720
Speaker 5: Obama administration. And indeed, when we seek context, we find

567
00:30:21,720 --> 00:30:24,240
Speaker 5: it with the help of Christopher. It's great to see, sir,

568
00:30:24,280 --> 00:30:27,640
Speaker 5: Welcome back to Bloomberg. It's good to connect on a

569
00:30:27,720 --> 00:30:29,280
Speaker 5: day like this, because there's a lot we need to

570
00:30:29,280 --> 00:30:31,959
Speaker 5: talk about, and I'm wondering what has your attention and

571
00:30:31,960 --> 00:30:34,600
Speaker 5: what will be kind of the most important of the

572
00:30:34,600 --> 00:30:35,200
Speaker 5: tent polls.

573
00:30:35,200 --> 00:30:35,640
Speaker 4: This week?

574
00:30:35,680 --> 00:30:38,040
Speaker 5: We open with trade deals, we have a FED meeting

575
00:30:38,160 --> 00:30:39,880
Speaker 5: right in the middle, and we have the jobs report

576
00:30:39,960 --> 00:30:43,360
Speaker 5: on Friday. Will these three combine to bring good news

577
00:30:43,480 --> 00:30:44,320
Speaker 5: to this White House?

578
00:30:45,440 --> 00:30:47,440
Speaker 11: Well, I've got bigger questions on my mind. First of all,

579
00:30:47,440 --> 00:30:48,680
Speaker 11: why is it that you and I are the only

580
00:30:48,680 --> 00:30:51,040
Speaker 11: two people trapped in the Amtrak corridor on a week

581
00:30:51,120 --> 00:30:52,200
Speaker 11: like this from everybody.

582
00:30:51,840 --> 00:30:52,400
Speaker 8: Else is gone?

583
00:30:52,520 --> 00:30:53,200
Speaker 4: Great question?

584
00:30:54,240 --> 00:30:57,880
Speaker 11: My second question is which one looks more uncomfortable in

585
00:30:57,880 --> 00:30:58,520
Speaker 11: those pictures?

586
00:30:58,560 --> 00:30:58,800
Speaker 10: Is at J.

587
00:30:58,960 --> 00:31:01,640
Speaker 11: Powell and his heart hat or is it Ursula Vanderlyne

588
00:31:01,720 --> 00:31:04,600
Speaker 11: trying to talk about the hugest deal she's ever seen.

589
00:31:06,000 --> 00:31:09,400
Speaker 5: But these are good questions, Christopher Smart. I don't know

590
00:31:09,400 --> 00:31:11,320
Speaker 5: if you have answers to either of them. But she

591
00:31:11,440 --> 00:31:14,600
Speaker 5: clearly knew who was coming to town, right set them

592
00:31:14,920 --> 00:31:15,160
Speaker 5: for this.

593
00:31:15,880 --> 00:31:16,320
Speaker 8: That's right.

594
00:31:16,400 --> 00:31:19,360
Speaker 11: No, she was briefed, but it's clear that she's cut

595
00:31:19,520 --> 00:31:23,160
Speaker 11: from a different cloth politically from the President in terms

596
00:31:23,200 --> 00:31:29,320
Speaker 11: of personality and persona. But to your question, brought are

597
00:31:29,400 --> 00:31:31,560
Speaker 11: questions about the economy and the markets. I think you

598
00:31:31,600 --> 00:31:35,080
Speaker 11: know clearly the EU deal is helpful to have a

599
00:31:35,160 --> 00:31:39,280
Speaker 11: framework at least around which to work, but huge gaps

600
00:31:39,320 --> 00:31:41,800
Speaker 11: in terms of understanding what will be included, what will

601
00:31:41,800 --> 00:31:49,680
Speaker 11: be excluded. Steele apparently is included currently in this. I'm

602
00:31:49,680 --> 00:31:51,840
Speaker 11: sorry steel is not included in this, but there are

603
00:31:52,120 --> 00:31:55,480
Speaker 11: ongoing talks around steel that may lead to an even

604
00:31:55,520 --> 00:31:59,080
Speaker 11: lower rate for European steel. Pharmaceuticals are a big question

605
00:32:00,040 --> 00:32:02,760
Speaker 11: I know in the UK the President being in Scotland

606
00:32:02,840 --> 00:32:05,400
Speaker 11: right now. Scotch whiskey is a big question mark in

607
00:32:05,480 --> 00:32:07,560
Speaker 11: terms of what tariffs that will be facing coming into

608
00:32:07,600 --> 00:32:09,960
Speaker 11: the US, in addition to the wine that you covered.

609
00:32:10,600 --> 00:32:13,600
Speaker 11: But broadly, I think it's important to know that we

610
00:32:13,640 --> 00:32:15,880
Speaker 11: do know more about what the trade framework is going

611
00:32:15,920 --> 00:32:18,120
Speaker 11: to look like than we did a couple of months ago,

612
00:32:18,760 --> 00:32:24,000
Speaker 11: and tariffs that were roughly around two percent of as

613
00:32:24,040 --> 00:32:27,800
Speaker 11: a weighted average tariffs for United States imports are now

614
00:32:27,840 --> 00:32:31,160
Speaker 11: going to be just below twenty percent if the current

615
00:32:31,240 --> 00:32:35,040
Speaker 11: trajectory continues. So I think that's the big headline that

616
00:32:35,080 --> 00:32:37,200
Speaker 11: we all need to kind of absorb, and that's probably

617
00:32:37,200 --> 00:32:38,800
Speaker 11: what the FED is still going to look at as

618
00:32:38,840 --> 00:32:43,800
Speaker 11: it gathers later this week to decide not to change rates,

619
00:32:43,800 --> 00:32:45,400
Speaker 11: And I guess the bigger question is will there be

620
00:32:45,480 --> 00:32:46,959
Speaker 11: descents to that decision.

621
00:32:48,320 --> 00:32:52,080
Speaker 5: Well, it's fascinating here, what do you make of this

622
00:32:52,280 --> 00:32:54,960
Speaker 5: idea that, when we consider the uncertainty that the FED

623
00:32:55,000 --> 00:32:58,280
Speaker 5: is going to be clearly addressing on Wednesday, that investors

624
00:32:58,280 --> 00:33:01,240
Speaker 5: are kind of ignoring at the moment, this idea that, well,

625
00:33:01,320 --> 00:33:03,560
Speaker 5: we don't have all the details, and you know, it

626
00:33:03,600 --> 00:33:06,280
Speaker 5: may not be as favorable to the EU as well.

627
00:33:06,440 --> 00:33:07,760
Speaker 4: Ursula vonder Land was hoping.

628
00:33:07,800 --> 00:33:09,640
Speaker 5: But you know what, at least we know what the

629
00:33:09,800 --> 00:33:13,200
Speaker 5: tariff level is and having that certainty may be the

630
00:33:13,200 --> 00:33:15,960
Speaker 5: most valuable part of these negotiations.

631
00:33:16,040 --> 00:33:18,920
Speaker 4: Christopher, Well, it is.

632
00:33:18,880 --> 00:33:21,880
Speaker 11: But again the certainty is only relative. So it's it's

633
00:33:21,880 --> 00:33:24,200
Speaker 11: certainly much better than we have had in the last

634
00:33:24,280 --> 00:33:28,200
Speaker 11: few months. But again, lots of you know, companies that

635
00:33:28,520 --> 00:33:31,280
Speaker 11: make decisions about where to build the factory, about what

636
00:33:31,400 --> 00:33:35,360
Speaker 11: supply lines to build, really need to know the details.

637
00:33:35,520 --> 00:33:38,000
Speaker 11: You need to know what the exclusions are, what not

638
00:33:38,040 --> 00:33:39,720
Speaker 11: only how is it applying to them, but how is

639
00:33:39,760 --> 00:33:42,520
Speaker 11: it going to apply to their suppliers, to their customers,

640
00:33:42,640 --> 00:33:45,640
Speaker 11: How is it going to apply to their competitors. Just

641
00:33:45,680 --> 00:33:48,200
Speaker 11: as a small example, right now, we had the Japan

642
00:33:48,280 --> 00:33:49,280
Speaker 11: deal over the weekend.

643
00:33:50,640 --> 00:33:52,080
Speaker 8: We now have an EU deal.

644
00:33:52,760 --> 00:33:58,960
Speaker 11: The big the we're now importing cars from Mexico and

645
00:33:59,000 --> 00:34:01,719
Speaker 11: Canada outside of the u SMCA at much higher rates

646
00:34:02,040 --> 00:34:05,320
Speaker 11: than the UK and I'm sorry, than the UK, the

647
00:34:05,440 --> 00:34:08,880
Speaker 11: EU and Japan. So all of these are interconnecting parts

648
00:34:09,000 --> 00:34:12,239
Speaker 11: that will have to be addressed going forward. That means that,

649
00:34:12,400 --> 00:34:16,799
Speaker 11: for certainty, we're still going to have to wait a

650
00:34:16,840 --> 00:34:18,840
Speaker 11: long time. I guess the good news to your earlier

651
00:34:18,920 --> 00:34:21,600
Speaker 11: question about the economic data we're getting is that the

652
00:34:21,640 --> 00:34:24,239
Speaker 11: economic data still seems to be pretty good and the

653
00:34:24,280 --> 00:34:27,000
Speaker 11: economy seems to be resilient to some of these headwinds.

654
00:34:28,080 --> 00:34:32,080
Speaker 5: Well, what do you make of the message from the administration, Christopher, Like, Hey,

655
00:34:32,120 --> 00:34:34,960
Speaker 5: you guys have been telling us every month since we

656
00:34:35,080 --> 00:34:37,400
Speaker 5: showed up here that teriffs are going to cause inflation.

657
00:34:37,800 --> 00:34:40,520
Speaker 5: It hasn't happened yet. And if it hasn't happened yet,

658
00:34:40,560 --> 00:34:43,879
Speaker 5: then why would it happen? The idea being that we're

659
00:34:43,920 --> 00:34:46,040
Speaker 5: somehow out of the woods here. But what happens if

660
00:34:46,040 --> 00:34:48,560
Speaker 5: it kicks in in the second half, maybe in the

661
00:34:48,600 --> 00:34:51,160
Speaker 5: third or fourth quarter, Christopher, we are having a very

662
00:34:51,200 --> 00:34:54,640
Speaker 5: different conversation about the impact of tariff's on our economy

663
00:34:54,640 --> 00:34:55,560
Speaker 5: and prices.

664
00:34:56,520 --> 00:34:57,960
Speaker 8: Well, I think that's exactly right.

665
00:34:57,960 --> 00:35:00,200
Speaker 11: And I think if you were on the fom SEE

666
00:35:00,960 --> 00:35:04,000
Speaker 11: looking at just the economic data, not looking at anything

667
00:35:04,080 --> 00:35:06,600
Speaker 11: to do with trade policy, you would probably be thinking

668
00:35:06,640 --> 00:35:07,959
Speaker 11: about a couple of cuts right.

669
00:35:07,880 --> 00:35:10,200
Speaker 8: Now because of the way the.

670
00:35:11,760 --> 00:35:14,440
Speaker 11: Interest I'm sorry, because of the way prices have been falling,

671
00:35:14,960 --> 00:35:16,920
Speaker 11: not you know, not as fast as you'd like them to,

672
00:35:16,960 --> 00:35:19,960
Speaker 11: but they're certainly certainly heading downward for the most part.

673
00:35:20,320 --> 00:35:23,440
Speaker 11: But then you add on to that uncertainty around what

674
00:35:23,480 --> 00:35:26,719
Speaker 11: the President's deals will be. Now that's becoming clearer right now,

675
00:35:26,719 --> 00:35:28,360
Speaker 11: and as I said, we're moving from a world of

676
00:35:28,400 --> 00:35:32,720
Speaker 11: two percent to roughly twenty percent. The President and others

677
00:35:32,719 --> 00:35:35,719
Speaker 11: would say that's just a one off, that's only affecting

678
00:35:35,800 --> 00:35:39,879
Speaker 11: ten percent of our imports ten percent of GDP, which

679
00:35:39,880 --> 00:35:44,080
Speaker 11: are what our imports represent. But the third element to

680
00:35:44,160 --> 00:35:46,719
Speaker 11: all of this is, yes, but how do others respond

681
00:35:46,840 --> 00:35:50,239
Speaker 11: to these tariffs? Right You certainly have domestic producers that

682
00:35:50,280 --> 00:35:52,839
Speaker 11: are going to raise their rates, their prices to meet

683
00:35:52,920 --> 00:35:57,279
Speaker 11: the prices of the importers. You have other countries that

684
00:35:57,280 --> 00:35:59,680
Speaker 11: are going to respond in one way or another with

685
00:35:59,719 --> 00:36:03,040
Speaker 11: some terriffs, and then you've got the uncertainty around the

686
00:36:03,080 --> 00:36:05,960
Speaker 11: broader terror structure going on into the next few months

687
00:36:05,960 --> 00:36:11,000
Speaker 11: and years. And it's not necessarily the tariffs themselves drive inflation.

688
00:36:11,120 --> 00:36:14,280
Speaker 11: It's trade wars and trade uncertainty that drives inflation.

689
00:36:15,520 --> 00:36:18,840
Speaker 5: Well, Donald Trump's feeling pretty good about things at the moment. Christopher,

690
00:36:18,880 --> 00:36:21,560
Speaker 5: I suspect that anybody would with a trip like this.

691
00:36:21,680 --> 00:36:24,040
Speaker 5: He's playing golf. I guess he's playing pretty good golf

692
00:36:24,040 --> 00:36:26,839
Speaker 5: out there. Did you see, by the way, golf Force one.

693
00:36:27,600 --> 00:36:30,080
Speaker 5: I don't know if you have one of these, Christopher,

694
00:36:30,120 --> 00:36:33,279
Speaker 5: but they've made like this bulletproof golf cart for him.

695
00:36:33,320 --> 00:36:37,560
Speaker 5: It appears to be, according to reporting, a modified Polaris

696
00:36:37,640 --> 00:36:41,719
Speaker 5: Ranger XP. This imagine a golf cart with you know,

697
00:36:41,800 --> 00:36:44,120
Speaker 5: the armor and the tint the windows around. He's got

698
00:36:44,160 --> 00:36:46,840
Speaker 5: this massive entourage on the golf course.

699
00:36:47,280 --> 00:36:47,600
Speaker 4: I don't know.

700
00:36:47,640 --> 00:36:49,360
Speaker 5: It looks like the gator that I ride around and

701
00:36:49,440 --> 00:36:51,240
Speaker 5: when I visit my buddy Adam in Orange.

702
00:36:51,280 --> 00:36:52,640
Speaker 4: But I feel either way.

703
00:36:53,719 --> 00:36:55,520
Speaker 8: It's probably a gift from the King of Scotland.

704
00:36:56,480 --> 00:36:58,520
Speaker 5: You think it came from It's a donation to the

705
00:36:58,520 --> 00:37:03,560
Speaker 5: air Force. But look, if you're Donald Trump, Christopher Smart,

706
00:37:03,560 --> 00:37:06,560
Speaker 5: you're sitting there saying, I'm surrounded by naysayers, and I

707
00:37:06,680 --> 00:37:10,920
Speaker 5: keep announcing deals, and I just wonder your message to

708
00:37:10,960 --> 00:37:13,040
Speaker 5: the casual observer, what would you tell our viewers or

709
00:37:13,040 --> 00:37:16,560
Speaker 5: listeners who are saying, boy, seems like terriffs work pretty well.

710
00:37:17,560 --> 00:37:19,879
Speaker 11: Yeah. No, And I think that's a fair question to ask.

711
00:37:20,000 --> 00:37:22,680
Speaker 11: And I think you know, you've seen concessions right on

712
00:37:22,760 --> 00:37:25,120
Speaker 11: the part of some of these countries. I think some

713
00:37:25,160 --> 00:37:28,920
Speaker 11: of them are being exaggerated. For example, the commitments to

714
00:37:28,920 --> 00:37:31,000
Speaker 11: invest in the US, to buy things from the US,

715
00:37:31,080 --> 00:37:33,840
Speaker 11: those were going to happen probably in any case. Europe

716
00:37:33,840 --> 00:37:36,200
Speaker 11: needs to diversify its energy supply, it needs to buy

717
00:37:36,239 --> 00:37:41,520
Speaker 11: more defense, more for its own defense, so those are

718
00:37:41,640 --> 00:37:44,120
Speaker 11: going to happen anyway. On the other hand, you see

719
00:37:44,120 --> 00:37:48,040
Speaker 11: commitments to open up the markets to US companies, and

720
00:37:48,080 --> 00:37:50,960
Speaker 11: those are things that are very difficult. They're very easy

721
00:37:50,960 --> 00:37:54,000
Speaker 11: to promise, very difficult to do. It involves layers and

722
00:37:54,080 --> 00:37:58,480
Speaker 11: layers of regional regulation, legal reforms, lots of things that

723
00:37:58,880 --> 00:38:01,440
Speaker 11: will only see the result of whether they work or

724
00:38:01,480 --> 00:38:03,040
Speaker 11: not in over many years.

725
00:38:03,400 --> 00:38:05,200
Speaker 8: But again, I just go back to the uncertainty.

726
00:38:05,239 --> 00:38:08,400
Speaker 11: Trade deals aren't necessarily deals themselves that you strike and

727
00:38:08,480 --> 00:38:09,600
Speaker 11: sign a piece of paper.

728
00:38:10,080 --> 00:38:14,440
Speaker 8: They're setting the framework for an ongoing relationship as things change,

729
00:38:14,480 --> 00:38:17,520
Speaker 8: and if that relationship isn't clear and predictable, it becomes

730
00:38:17,600 --> 00:38:18,720
Speaker 8: very difficult to do business.

731
00:38:19,960 --> 00:38:23,480
Speaker 5: Fascinating as always, Christopher Smart or Growth Group, we always

732
00:38:23,520 --> 00:38:26,360
Speaker 5: look forward to the conversation, Christopher, I feel like I

733
00:38:26,360 --> 00:38:28,560
Speaker 5: could picture you on a golf Force one on the

734
00:38:28,600 --> 00:38:31,000
Speaker 5: Boston Common. We got to follow up on this much

735
00:38:31,040 --> 00:38:32,080
Speaker 5: more ahead on Bloomberg.

736
00:38:34,320 --> 00:38:37,799
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch

737
00:38:37,880 --> 00:38:40,719
Speaker 1: us live weekdays at noon and five pm. E's durn

738
00:38:40,880 --> 00:38:44,279
Speaker 1: on Apple Cocklay and Android Auto with the Bloomberg Business App.

739
00:38:44,320 --> 00:38:47,359
Speaker 1: You can also listen live on Amazon Alexa from our

740
00:38:47,400 --> 00:38:52,560
Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven thirty.

741
00:38:53,120 --> 00:38:56,440
Speaker 2: President Trump earlier this month had given a fifty day

742
00:38:56,480 --> 00:38:59,080
Speaker 2: deadline which would bring us at that point into early

743
00:38:59,120 --> 00:39:03,880
Speaker 2: September for Vladimir Putin to reach a ceasefire deal with

744
00:39:04,120 --> 00:39:08,080
Speaker 2: Ukraine or else face the threat of secondary sanctions or tariffs.

745
00:39:08,360 --> 00:39:10,120
Speaker 2: And today, while he was sitting down with the UK

746
00:39:10,200 --> 00:39:13,360
Speaker 2: Prime Minister Kiir Starmer. President Trump announced he's set to

747
00:39:13,360 --> 00:39:14,600
Speaker 2: bring that deadline forward.

748
00:39:15,920 --> 00:39:18,759
Speaker 3: I'm going to make a new deadline of about ten,

749
00:39:20,200 --> 00:39:24,240
Speaker 3: ten or twelve days from today. There's no reason in waiting.

750
00:39:25,440 --> 00:39:28,399
Speaker 3: There's no reason they're waiting. It's fifty days. I want

751
00:39:28,400 --> 00:39:32,719
Speaker 3: to be generous, but we just don't see any progress

752
00:39:32,760 --> 00:39:39,160
Speaker 3: being Matt. It would be sanctions and maybe tariffs, secondary tariffs.

753
00:39:40,520 --> 00:39:43,440
Speaker 5: This is the undercurrent of the conversations on trade that

754
00:39:43,520 --> 00:39:46,560
Speaker 5: the President is having overseas. You can add Gaza to

755
00:39:46,680 --> 00:39:49,400
Speaker 5: that list, as well as we assemble our political panel.

756
00:39:49,640 --> 00:39:53,120
Speaker 5: They're both with us today. Bloomberg Politics contributors Genie Shanzano

757
00:39:53,200 --> 00:39:56,160
Speaker 5: and Rick Davis. Rick is our Republican strategist and partner

758
00:39:56,400 --> 00:39:59,800
Speaker 5: at Stone Court Capital. Genie is senior Democracy Fellow with

759
00:39:59,840 --> 00:40:02,880
Speaker 5: the Center for the Study of the Presidency in Congress.

760
00:40:03,520 --> 00:40:04,360
Speaker 4: Rick, this is an.

761
00:40:04,200 --> 00:40:06,960
Speaker 5: Interesting turn here and fascinating to listen to the language

762
00:40:06,960 --> 00:40:10,160
Speaker 5: coming from President Trump just a day after he met

763
00:40:10,160 --> 00:40:14,400
Speaker 5: with Ursula Vonderlin and now today with the UK's here Starmer,

764
00:40:14,520 --> 00:40:17,759
Speaker 5: is this trip to Scotland the worst thing that could

765
00:40:17,760 --> 00:40:19,040
Speaker 5: have happened to Vladimir Putin?

766
00:40:20,640 --> 00:40:22,160
Speaker 12: Well, I think the worst thing that could have happened

767
00:40:22,160 --> 00:40:25,040
Speaker 12: to Vladimir Putin is Vladimir Putin. Remember he's gone through

768
00:40:25,080 --> 00:40:27,440
Speaker 12: other presidents, you know, sort of rinse and repeat.

769
00:40:27,520 --> 00:40:27,680
Speaker 3: Right.

770
00:40:27,800 --> 00:40:30,000
Speaker 12: He thinks you're gonna be your best friend, You're gonna

771
00:40:30,000 --> 00:40:33,080
Speaker 12: have a strategic relationship finally with the former Soviet Union,

772
00:40:33,560 --> 00:40:35,760
Speaker 12: only to be disappointed by the fact that he actually

773
00:40:35,760 --> 00:40:38,280
Speaker 12: has no intention of being anything other than a former

774
00:40:38,360 --> 00:40:42,720
Speaker 12: KGB agent who's out to recreate the you know, Russian empire.

775
00:40:43,160 --> 00:40:46,480
Speaker 12: Remember George W. Bush once said, oh, I look at

776
00:40:46,520 --> 00:40:49,759
Speaker 12: his eyes and I saw it, you know, somebody I

777
00:40:49,760 --> 00:40:53,879
Speaker 12: could deal with. And that's the same experience Donald Trump's had.

778
00:40:53,920 --> 00:40:55,880
Speaker 12: He looked into his eyes and he thought he was

779
00:40:55,880 --> 00:40:58,560
Speaker 12: somebody he could do business with. And now he's realizing

780
00:40:58,600 --> 00:41:01,560
Speaker 12: the same thing George W. Lives in, Barack Obama and

781
00:41:01,640 --> 00:41:05,040
Speaker 12: other former presidents. You can't do business with this man.

782
00:41:05,840 --> 00:41:08,840
Speaker 12: He has an agenda that is counter to the global

783
00:41:08,880 --> 00:41:14,400
Speaker 12: agenda of freedom and democracy and trade. And where do

784
00:41:14,440 --> 00:41:16,880
Speaker 12: you find common ground? There is none, And that's what

785
00:41:17,000 --> 00:41:19,919
Speaker 12: Donald Trump is now realizing. So the fact that he's

786
00:41:19,920 --> 00:41:23,040
Speaker 12: in the embrace of the Europeans, that's helpful. Right here,

787
00:41:23,080 --> 00:41:25,839
Speaker 12: Starmer will make a good effort on the airplane fly

788
00:41:25,920 --> 00:41:28,879
Speaker 12: into the Aberdeen golf course today to say that guy

789
00:41:28,960 --> 00:41:31,200
Speaker 12: is a bad guy and we ought to shut him down.

790
00:41:31,719 --> 00:41:33,000
Speaker 8: So that's good.

791
00:41:33,040 --> 00:41:36,080
Speaker 12: The question is does it stick when he's home and

792
00:41:36,120 --> 00:41:41,279
Speaker 12: he's surrounded by other sort of maga Kremlinites who are

793
00:41:41,320 --> 00:41:42,760
Speaker 12: going to give him a different tune?

794
00:41:43,080 --> 00:41:44,799
Speaker 8: With Donald Trump so many times it's.

795
00:41:44,719 --> 00:41:47,600
Speaker 12: The last man in the office, and I you know,

796
00:41:47,760 --> 00:41:51,280
Speaker 12: maybe maybe Cures Starmer should spend more time in Washington.

797
00:41:53,360 --> 00:41:53,520
Speaker 8: Well.

798
00:41:53,560 --> 00:41:55,719
Speaker 2: Building on Rick's point, Genie, and thinking back to the

799
00:41:55,760 --> 00:41:58,560
Speaker 2: language we just heard from President Trump, the suggestion that

800
00:41:58,600 --> 00:42:01,880
Speaker 2: there is no reason for waiting for a longer deadline,

801
00:42:01,880 --> 00:42:05,080
Speaker 2: suggesting that the outcome might not be different whether the

802
00:42:05,080 --> 00:42:07,400
Speaker 2: waight period is fifty days or ten days. Is this

803
00:42:07,560 --> 00:42:10,200
Speaker 2: a President Trump that has now resigned to the idea

804
00:42:10,239 --> 00:42:12,000
Speaker 2: that he can't deal with Vladimir Putin?

805
00:42:13,600 --> 00:42:16,000
Speaker 13: Yeah, And I think the question is why has it

806
00:42:16,160 --> 00:42:19,640
Speaker 13: taken him so long? You know, Donald Trump is the

807
00:42:19,640 --> 00:42:23,440
Speaker 13: one who gave Vladimir Putin this long runway, and he

808
00:42:23,520 --> 00:42:27,160
Speaker 13: continually goes on television and talks about, even today in

809
00:42:27,200 --> 00:42:30,120
Speaker 13: his press conference, the nice, pleasant calls they'll have, and

810
00:42:30,160 --> 00:42:34,600
Speaker 13: then three hours later, Vladimir Putin is bombing key. The

811
00:42:34,680 --> 00:42:38,120
Speaker 13: reality is the person who hasn't changed their note or

812
00:42:38,200 --> 00:42:41,600
Speaker 13: tune at all is Vladimir Putin. He's been clear from

813
00:42:41,640 --> 00:42:44,400
Speaker 13: the beginning on what he will and will not accept,

814
00:42:44,920 --> 00:42:47,759
Speaker 13: and that has not changed. And so I'm not sure

815
00:42:47,800 --> 00:42:51,000
Speaker 13: why Donald Trump has been fooling himself quite frankly, that

816
00:42:51,160 --> 00:42:53,719
Speaker 13: something would change if he gave him fifty days or

817
00:42:53,760 --> 00:42:57,600
Speaker 13: ten days. I think what's troubling policy wise is the

818
00:42:57,640 --> 00:43:01,680
Speaker 13: President is talking about these secondaries sanctions, and a big

819
00:43:01,800 --> 00:43:05,160
Speaker 13: question about those is those aren't going to be sanctions

820
00:43:05,560 --> 00:43:08,560
Speaker 13: on Russia. There'll be sanctions on people who do business

821
00:43:08,600 --> 00:43:12,959
Speaker 13: with Russia, including India and China, the very people we're

822
00:43:13,080 --> 00:43:16,640
Speaker 13: trying to have a trade deal with. So I'm not

823
00:43:16,680 --> 00:43:19,200
Speaker 13: sure that gets him where he wants to go either.

824
00:43:19,239 --> 00:43:21,919
Speaker 13: And I think what it says is he doesn't want

825
00:43:21,960 --> 00:43:26,320
Speaker 13: to take the next step of firmly standing behind Ukraine

826
00:43:26,840 --> 00:43:30,040
Speaker 13: and giving them what they need to execute this war.

827
00:43:30,080 --> 00:43:32,200
Speaker 13: And if he's not prepared to do that, and I

828
00:43:32,320 --> 00:43:35,279
Speaker 13: understand why, then all of this is.

829
00:43:35,239 --> 00:43:38,520
Speaker 5: For not what's your thought on that, Rick, We've been

830
00:43:38,560 --> 00:43:43,320
Speaker 5: talking about secondary sanctions the four of us now for years.

831
00:43:43,440 --> 00:43:46,200
Speaker 5: Will the Trump administration be the one to put them

832
00:43:46,200 --> 00:43:47,080
Speaker 5: in effect.

833
00:43:48,360 --> 00:43:51,560
Speaker 12: Very well could, and it's about time. As you point out,

834
00:43:51,680 --> 00:43:54,040
Speaker 12: this hasn't been a hard one to figure out. It's

835
00:43:54,080 --> 00:43:57,279
Speaker 12: not doing trade with China and India that matters. It's

836
00:43:57,320 --> 00:44:01,520
Speaker 12: the revenue that Russia gets that sustains their war effort

837
00:44:01,640 --> 00:44:03,840
Speaker 12: from doing those trade deals. And so if you have

838
00:44:03,920 --> 00:44:06,640
Speaker 12: an ability to shut that down, you have ability to

839
00:44:06,680 --> 00:44:08,200
Speaker 12: help shut down the war effort in.

840
00:44:09,680 --> 00:44:10,120
Speaker 4: Russia.

841
00:44:10,239 --> 00:44:13,799
Speaker 12: And by the way, either Donald Trump's going to do

842
00:44:13,880 --> 00:44:16,960
Speaker 12: it at what his level he said is one hundred

843
00:44:16,960 --> 00:44:21,120
Speaker 12: percent tariff costs, or the Congress is going to pass

844
00:44:21,360 --> 00:44:28,000
Speaker 12: overwhelmingly a tariff regime, a sanctions regime where those tariffs

845
00:44:28,000 --> 00:44:31,600
Speaker 12: are five hundred percent. And so I think it's a

846
00:44:31,640 --> 00:44:36,560
Speaker 12: lot to say something's going to happen where economic sanctions

847
00:44:36,560 --> 00:44:40,200
Speaker 12: on Russia get a lot stiffer pretty soon. And either

848
00:44:40,280 --> 00:44:42,799
Speaker 12: Donald Trump's going to do it, or Congress is going

849
00:44:42,840 --> 00:44:44,920
Speaker 12: to do it and put it on his desk and

850
00:44:45,000 --> 00:44:46,279
Speaker 12: dare him not to sign it.

851
00:44:48,080 --> 00:44:50,719
Speaker 2: Well, of course, as President Trump is pushing for an

852
00:44:50,800 --> 00:44:52,920
Speaker 2: end to this war, he also is pushing for a

853
00:44:52,960 --> 00:44:56,880
Speaker 2: ceasefire between Israel and Thomas. As the world is growing

854
00:44:57,120 --> 00:45:01,360
Speaker 2: increasingly focused on the hunger that the people of Gaza

855
00:45:01,400 --> 00:45:04,400
Speaker 2: are currently experiencing in questions over whether or not that

856
00:45:04,440 --> 00:45:08,480
Speaker 2: classifies as starvation. To ask the Israeli Prime Minister Benjamin

857
00:45:08,520 --> 00:45:11,359
Speaker 2: Netanyahoo if it does. His answer is no. This is

858
00:45:11,480 --> 00:45:12,600
Speaker 2: what he said yesterday.

859
00:45:13,560 --> 00:45:19,400
Speaker 10: Israel as presented as though we are applying a campaign

860
00:45:19,960 --> 00:45:21,640
Speaker 10: of starvation in Gaza.

861
00:45:22,480 --> 00:45:25,200
Speaker 8: What a bold face lie.

862
00:45:26,320 --> 00:45:30,120
Speaker 10: There is no policy of starvation in Gaza, and there

863
00:45:30,160 --> 00:45:36,000
Speaker 10: is no starvation in Gaza. We enable humanitarian throughout the

864
00:45:36,560 --> 00:45:38,839
Speaker 10: duration of the war to enter Gaza, otherwise there would

865
00:45:38,840 --> 00:45:39,560
Speaker 10: be no Gazins.

866
00:45:42,000 --> 00:45:44,600
Speaker 2: And while he says there is no campaign of starvation,

867
00:45:44,760 --> 00:45:48,760
Speaker 2: others obviously beg to differ, including it seems President Trump,

868
00:45:48,760 --> 00:45:52,200
Speaker 2: who was actually asked about the situation in Gaza alongside

869
00:45:52,239 --> 00:45:54,800
Speaker 2: the UK Prime Minister Keir Starmer, who described the people

870
00:45:54,800 --> 00:45:57,719
Speaker 2: of Britain specifically as being revolted by the images they

871
00:45:57,719 --> 00:46:00,080
Speaker 2: are seeing out of Gaza, Trump suggested he's seen the

872
00:46:00,080 --> 00:46:02,600
Speaker 2: pictures too, and he does not agree with Anton Y'ahu.

873
00:46:02,640 --> 00:46:03,360
Speaker 4: This is what he said.

874
00:46:04,239 --> 00:46:07,759
Speaker 3: The United States will be helping with the food. You know,

875
00:46:07,840 --> 00:46:09,759
Speaker 3: we have a lot of access to food. We've got

876
00:46:09,760 --> 00:46:12,279
Speaker 3: a lot of food ourselves, and we're going to bring

877
00:46:12,320 --> 00:46:13,840
Speaker 3: it over there. We're also going to make sure that

878
00:46:13,880 --> 00:46:15,960
Speaker 3: they don't have barriers stopping people. We're going to be

879
00:46:16,000 --> 00:46:19,200
Speaker 3: getting some good, strong food. We can save a lot

880
00:46:19,200 --> 00:46:21,680
Speaker 3: of people. I mean, some of those kids are that's

881
00:46:21,760 --> 00:46:26,080
Speaker 3: real starvation stuff. I see it, and you can't fake that.

882
00:46:26,640 --> 00:46:29,799
Speaker 3: So we're going to be even more involved.

883
00:46:31,600 --> 00:46:35,799
Speaker 2: Real starvation stuff, Genie, that you can't fake. What do

884
00:46:35,840 --> 00:46:38,000
Speaker 2: we make of this break between President Trump and the

885
00:46:38,080 --> 00:46:39,040
Speaker 2: Israeli Prime Minister.

886
00:46:40,920 --> 00:46:44,400
Speaker 13: I think it was very welcome that the President broke

887
00:46:44,480 --> 00:46:47,880
Speaker 13: with the Prime minister. As you mentioned, We've all seen

888
00:46:47,960 --> 00:46:52,200
Speaker 13: the pictures. Despite in many cases the press not being

889
00:46:52,280 --> 00:46:55,799
Speaker 13: welcome into Gaza, we've been able to see pictures, and

890
00:46:55,840 --> 00:46:58,080
Speaker 13: I think one of the most terrific stories we heard

891
00:46:58,080 --> 00:47:01,640
Speaker 13: this weekend was a five month old baby who died

892
00:47:01,680 --> 00:47:05,960
Speaker 13: weighing less than when she was born. This came out

893
00:47:05,960 --> 00:47:09,399
Speaker 13: of the AP and Donald Trump said it absolutely right,

894
00:47:09,480 --> 00:47:14,120
Speaker 13: President Trump, excuse me that the pictures don't lie, and

895
00:47:14,200 --> 00:47:17,160
Speaker 13: so I think it's very important that the President said that.

896
00:47:17,600 --> 00:47:21,040
Speaker 13: I don't know where that leaves us. We've seen Israel

897
00:47:21,239 --> 00:47:24,440
Speaker 13: put in a corner where it's opening some food corridors,

898
00:47:24,760 --> 00:47:28,000
Speaker 13: it's allowing a pause in the fighting for there to

899
00:47:28,040 --> 00:47:31,680
Speaker 13: be some movement forward in terms of the aid, but

900
00:47:31,800 --> 00:47:36,120
Speaker 13: we are quite frankly, no closer to a real end

901
00:47:36,320 --> 00:47:40,280
Speaker 13: to this war from either side. And as these people

902
00:47:40,360 --> 00:47:44,440
Speaker 13: starve to death, sixty thousand dead over there, that is

903
00:47:44,480 --> 00:47:46,960
Speaker 13: a very troubling sign. But I was glad the President

904
00:47:47,000 --> 00:47:49,719
Speaker 13: today said that, and he said it loud, and he

905
00:47:49,800 --> 00:47:52,080
Speaker 13: said it so the entire world could hear what we

906
00:47:52,120 --> 00:47:53,280
Speaker 13: all know to be the truth.

907
00:47:54,440 --> 00:47:58,800
Speaker 5: Rick, what do you make of the rhetoric from Netanyahu's government,

908
00:47:58,880 --> 00:48:02,920
Speaker 5: from Benjaminetnia who himself Ron Dermer and others that what

909
00:48:03,000 --> 00:48:05,399
Speaker 5: we're seeing, I mean, you heard Netanya who they're saying

910
00:48:05,400 --> 00:48:08,360
Speaker 5: there is no starvation in Gaza. They're actually going a

911
00:48:08,400 --> 00:48:12,440
Speaker 5: step further to say that Hamas is exploiting young children

912
00:48:12,520 --> 00:48:17,520
Speaker 5: with terminal diseases and having them photographed to make it

913
00:48:17,600 --> 00:48:21,120
Speaker 5: look as if they are starving. How are Americans supposed

914
00:48:21,160 --> 00:48:23,600
Speaker 5: to interpret this messaging?

915
00:48:24,840 --> 00:48:27,680
Speaker 12: Well, I mean, unfortunately, all of those things could be true,

916
00:48:27,840 --> 00:48:30,719
Speaker 12: and yet the truth is also on the side of

917
00:48:30,719 --> 00:48:31,360
Speaker 12: the people.

918
00:48:31,160 --> 00:48:32,760
Speaker 4: Gaza who are hungry.

919
00:48:32,800 --> 00:48:36,080
Speaker 12: I mean, I take my lead from Sinny McCain, the

920
00:48:36,120 --> 00:48:39,920
Speaker 12: World Food Program head. Wouldn't surprise anybody that I'd say that,

921
00:48:40,040 --> 00:48:43,360
Speaker 12: But The reality is, of course, there are independent agencies

922
00:48:43,400 --> 00:48:45,040
Speaker 12: that do this all across the world, and they know

923
00:48:45,080 --> 00:48:47,600
Speaker 12: a famine, they know starvation when they see it. They've

924
00:48:47,600 --> 00:48:51,160
Speaker 12: been very outspoken about this. You would think that Prime

925
00:48:51,160 --> 00:48:54,800
Speaker 12: Minister Ninya who would use them as a safe place

926
00:48:54,920 --> 00:48:58,920
Speaker 12: as long as they're happy, he will have some insulation

927
00:48:59,040 --> 00:49:02,279
Speaker 12: to the criticism what he's doing in Gaza. But the

928
00:49:02,320 --> 00:49:05,400
Speaker 12: reality is there are a lot of voices in the

929
00:49:05,440 --> 00:49:08,239
Speaker 12: Israeli government right now, we have to assume that the

930
00:49:08,400 --> 00:49:11,680
Speaker 12: voice that matters the most is Bib Nin Yahoo's, and

931
00:49:11,719 --> 00:49:13,600
Speaker 12: it seems out of step with.

932
00:49:13,480 --> 00:49:14,520
Speaker 8: What the rest of the world.

933
00:49:14,640 --> 00:49:17,960
Speaker 12: The World Food Program and others who are charged with

934
00:49:18,080 --> 00:49:22,280
Speaker 12: avoiding this kind of situation are saying about the access points,

935
00:49:22,400 --> 00:49:24,120
Speaker 12: the amount of food that's getting in there, and the

936
00:49:24,160 --> 00:49:28,640
Speaker 12: distribution process that's being used. It's a failure by anybody

937
00:49:28,680 --> 00:49:31,520
Speaker 12: stretch of the imagination. And the fact that now Donald

938
00:49:31,560 --> 00:49:35,160
Speaker 12: Trump has an inclination to do something about it, his

939
00:49:35,239 --> 00:49:37,879
Speaker 12: close relationship with BB hopefully can be put to use

940
00:49:37,960 --> 00:49:42,320
Speaker 12: so that so that the efforts to combat hamas aren't

941
00:49:43,120 --> 00:49:48,920
Speaker 12: cast in a negative light. Because of the dire situation

942
00:49:49,040 --> 00:49:52,120
Speaker 12: that the rest of the people of Gaza have actually

943
00:49:52,120 --> 00:49:54,160
Speaker 12: been exposed.

944
00:49:53,719 --> 00:49:55,799
Speaker 10: To all right.

945
00:49:55,880 --> 00:49:59,320
Speaker 2: Rick Davis and Jeanie Shanzino are political panel on this Monday.

946
00:49:59,360 --> 00:50:02,400
Speaker 2: Thank you so much, covering all things geopolitics.

947
00:50:04,960 --> 00:50:08,160
Speaker 5: Thanks for listening to the Balance of Power podcast. Make

948
00:50:08,200 --> 00:50:11,160
Speaker 5: sure to subscribe if you haven't already, at Apple, Spotify,

949
00:50:11,239 --> 00:50:13,799
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950
00:50:13,880 --> 00:50:17,600
Speaker 5: us live every weekday from Washington, DC at Noontimeeastern at

951
00:50:17,600 --> 00:50:18,840
Speaker 5: Bloomberg dot com.