WEBVTT - Trump Cabinet Picks; House Control Narrowing for Democrats 0:00:00.160 --> 0:00:08.720 Bloomberg Audio Studios, Podcasts, Radio News. 0:00:09.680 --> 0:00:10.760 Good morning, I'm John. 0:00:10.560 --> 0:00:13.440 Tucker and I'm Karen Moscow. Here are the stories we're 0:00:13.480 --> 0:00:14.640 following today. 0:00:14.560 --> 0:00:17.280 And Karen, let's begin with politics. President of Like Donald 0:00:17.320 --> 0:00:20.520 Trump has named his White House chief of staff. Let's 0:00:20.520 --> 0:00:23.160 get the tales this morning from Bloomberg's Doug Prisoner. 0:00:23.720 --> 0:00:26.639 Susie Wiles will be the first ever female White House 0:00:26.680 --> 0:00:29.240 Chief of staff. She was one of the top architects 0:00:29.280 --> 0:00:33.440 of Trump's twenty twenty four presidential campaign. Wiles was widely 0:00:33.520 --> 0:00:36.600 credited with bringing order and discipline to the chaotic world 0:00:36.640 --> 0:00:41.440 that Trump often cultivates. In a statement, Trump called her tough, smart, innovative, 0:00:41.440 --> 0:00:45.040 and universally admired and respected. Wiles is the daughter of 0:00:45.080 --> 0:00:48.960 famed NFL broadcaster Pat Summarole. She's been in politics since 0:00:49.040 --> 0:00:53.080 nineteen eighty, when she worked on Ronald Reagan's presidential campaign 0:00:53.479 --> 0:00:55.480 in New York. I'm Doug Prisner, Bloomberg Radio. 0:00:55.680 --> 0:00:57.840 All right, Doug, thanks, So when of Trump's most highly 0:00:57.920 --> 0:01:01.600 anticipated cabinet picks will be treasure Secretary. We get more 0:01:01.680 --> 0:01:03.920 with Bloomberg Senior editor Bill Ferries. 0:01:04.319 --> 0:01:06.600 There's a lot of names out there that'll be familiar 0:01:06.680 --> 0:01:10.679 to people. Scott Bessant of Key Square Capital Management. He 0:01:10.760 --> 0:01:13.240 has been a big, big advocate for Trump on the 0:01:13.280 --> 0:01:16.880 campaign trail, a big fundraiser, and a big critic of 0:01:17.000 --> 0:01:21.440 treasure current Treasury Secretary Janet Yellen. But there's also people 0:01:21.560 --> 0:01:25.720 like Jay Clayton, who was Trump's sec chair. There's Tennessee 0:01:25.959 --> 0:01:31.119 Senator Bill Haggerty and former US Trade Representative Bob Leitthheiser. 0:01:31.800 --> 0:01:35.039 John Paulson is out there. So it's a huge number 0:01:35.040 --> 0:01:39.000 of names. I should also mention Canner FitzGeralds Howard Lutnik. 0:01:39.240 --> 0:01:42.480 And Bloomberg senior editor Bill Ferries notes that Trump's first 0:01:42.640 --> 0:01:45.800 Treasury Secretary, Steve Minuchen, was one of the few in 0:01:45.880 --> 0:01:47.880 his cabinet who served out the full term. 0:01:48.160 --> 0:01:51.280 Hey, Donald Trump says he has spoken with Ukraine's President 0:01:51.440 --> 0:01:54.960 Vladimir Zelenski since the result, but not with Vladimir Putin. 0:01:55.480 --> 0:01:58.320 Speaking at a gathering associate the Russian president here at 0:01:58.320 --> 0:02:01.680 his hopes for working with a new US administrations. 0:02:02.040 --> 0:02:04.120 I do not want to comment now on what was 0:02:04.160 --> 0:02:07.280 said consciously during the election campaign. I think it was 0:02:07.320 --> 0:02:10.359 said deliberately in the fight for votes, but it does 0:02:10.440 --> 0:02:13.120 not matter what was said in the desire to restore 0:02:13.160 --> 0:02:16.600 relations with Russia to help end the Ukrainian crisis, in 0:02:16.680 --> 0:02:20.360 my opinion, seems to deserve at least attention. I would 0:02:20.400 --> 0:02:23.200 like to take this opportunity to congratulate him on his 0:02:23.280 --> 0:02:25.880 election as President of the United States of America. 0:02:26.320 --> 0:02:29.480 Vladimir Putin's speaking through an interpreter on the campaign trail, 0:02:29.680 --> 0:02:33.080 Trump predicted he could end the Russia Ukraine conflict. The 0:02:33.200 --> 0:02:35.000 day after his election. 0:02:35.480 --> 0:02:37.840 Well, John Trump has received a phone call from current 0:02:37.880 --> 0:02:41.840 President Joe Biden. Biden spoke yesterday at the Rose Garden 0:02:41.840 --> 0:02:42.560 at the White House. 0:02:42.880 --> 0:02:47.160 Yesterday, I spoke with President elect Trump to congratulate him 0:02:47.160 --> 0:02:50.480 on his victory, and I assured him if I direct 0:02:50.520 --> 0:02:53.840 my tired administration to work with his team to ensure 0:02:53.880 --> 0:02:56.240 a peaceful and orderly transition. 0:02:57.000 --> 0:03:00.720 President Biden also praised Vice President Kamala Harris, saying she 0:03:00.840 --> 0:03:04.679 showed great character and should be proud of her campaign. 0:03:04.400 --> 0:03:07.280 And shock up another battleground state win for Donald Trump. 0:03:07.560 --> 0:03:10.360 He has defeated Kamala Harris in Nevada, flipping a state 0:03:10.400 --> 0:03:14.040 that previously backed Democrats in twenty sixteen and twenty twenty, 0:03:14.280 --> 0:03:16.600 and that brings the electoral count to two hundred and 0:03:16.639 --> 0:03:19.440 ninety five for Trump and two hundred and twenty six. 0:03:19.320 --> 0:03:23.240 For Harris and John. Control of the House is expected 0:03:23.240 --> 0:03:26.400 to be decided by races. In the Western US, Republicans 0:03:26.440 --> 0:03:29.000 hold two hundred eleven House seats to the Democrats one 0:03:29.040 --> 0:03:32.200 hundred ninety nine. Democrats hope to flip seats and races 0:03:32.200 --> 0:03:36.440 across California, Arizona, and possibly Oregon, but Republicans are showing 0:03:36.560 --> 0:03:39.839 leads and enough races to take a narrow majority. Back 0:03:39.840 --> 0:03:44.080 eastern Pennsylvania, the GOP flipped two key races. Rob Abresnahan 0:03:44.160 --> 0:03:47.400 defeated incumbent Democrat Matt Cartwright fifty one to forty nine 0:03:47.440 --> 0:03:50.680 percent in District eight, and Democrats Susan Wilde lost this 0:03:50.800 --> 0:03:54.600 seventh district to the GOP's Ryan Mackenzie fifty point seven 0:03:54.640 --> 0:03:57.200 percent to forty nine point three percent, And in the 0:03:57.280 --> 0:04:01.240 tenth district, Republican Scott Perry held on to defeat Democrat 0:04:01.360 --> 0:04:05.520 Janelle Stellson fifty to forty nine percent. Control of the 0:04:05.560 --> 0:04:08.560 House likely won't be called until next week. 0:04:08.760 --> 0:04:11.320 And meanwhile, in New York, Karen all House races they 0:04:11.360 --> 0:04:14.320 have been called, with a couple of districts flipping in 0:04:14.400 --> 0:04:18.480 democrats favor. Loren Gillen defeated the incumbent Republican Anthony de 0:04:18.600 --> 0:04:22.160 Esposito in New York's fourth district fifty point nine percent 0:04:22.440 --> 0:04:25.800 to forty nine point one percent. A Democrat, Josh Riley, 0:04:25.839 --> 0:04:29.920 secured victory in the state's nineteenth district, defeating Republican incumbent 0:04:30.160 --> 0:04:33.440 Mark Bolanaro fifty point five percent of forty nine point 0:04:33.480 --> 0:04:34.080 five percent. 0:04:34.560 --> 0:04:37.800 Meanwhile, in the GOP controlled Senate, john Republicans widen their 0:04:37.800 --> 0:04:41.760 majority to fifty three seats, as former Bridgewater executive David 0:04:41.839 --> 0:04:46.560 McCormick defeated a longtime incumbent Democrat, Bob Casey in Pennsylvania 0:04:46.800 --> 0:04:49.720 forty nine to forty eight point five percent. Casey, who 0:04:49.800 --> 0:04:52.839 sald the seats since two thousand and seven, is Pennsylvania's 0:04:52.880 --> 0:04:55.800 longest serving Democrat ever in the Senate. It was one 0:04:55.839 --> 0:04:59.160 of the most expensive Senate races this cycle. 0:04:58.960 --> 0:05:02.800 And there's other election cent Levi's air. Daniel Lourie is 0:05:02.839 --> 0:05:06.200 set to become the mayor of San Francisco after spending 0:05:06.200 --> 0:05:08.479 more than eight million dollars of his own money to 0:05:08.560 --> 0:05:11.919 position himself as a political outsider who could best tackle 0:05:11.960 --> 0:05:15.560 the city's homelessness, drug and crime problems. A winner hasn't 0:05:15.600 --> 0:05:19.240 been officially called, but incumbent London Breed did concede the 0:05:19.279 --> 0:05:20.200 election last night. 0:05:20.839 --> 0:05:24.240 I palled Daniel Lurie earlier today to congratulate him and 0:05:24.279 --> 0:05:27.520 made it very clear that my team and I stand 0:05:27.600 --> 0:05:30.120 ready to support him during his transition. 0:05:30.480 --> 0:05:33.440 The preliminary results showed LORI had one about fifty six 0:05:33.480 --> 0:05:36.360 percent of the vote under the city's ranked choice voting system, 0:05:36.960 --> 0:05:40.760 compared with breeds forty four percent and a disclaimer. Michael Bloomberg, 0:05:40.800 --> 0:05:43.679 the founder of majority owner Bloomberg LP, donated one point 0:05:43.680 --> 0:05:46.360 four to five million dollars in support of Breed's re 0:05:46.520 --> 0:05:47.479 election campaign. 0:05:47.839 --> 0:05:51.320 Well John Federal Reserve chair J Powell has made clear 0:05:51.480 --> 0:05:54.640 he's ready to defend the Central Bank from political pressure 0:05:54.680 --> 0:05:58.080 after the reelection of Donald Trump. Following the FED unanimous 0:05:58.080 --> 0:06:00.880 decision to cut rates by a quarter point, Powell was 0:06:00.920 --> 0:06:04.160 repeatedly asked in his press conference about his position under 0:06:04.160 --> 0:06:05.560 the incoming administration. 0:06:06.200 --> 0:06:09.440 Some of the president's elects advisors have suggested that you 0:06:09.680 --> 0:06:13.200 should resign. If he asked you to leave, would you go? 0:06:13.839 --> 0:06:13.919 No? 0:06:15.480 --> 0:06:18.799 Can you follow up on do you think that legally 0:06:19.440 --> 0:06:20.760 you're not required to leave. 0:06:21.240 --> 0:06:23.719 No, do you believe the president has the power to 0:06:23.839 --> 0:06:26.159 fire or demote you? And it has the FED determined 0:06:26.160 --> 0:06:29.840 the legality of a president demoting at will any of 0:06:29.920 --> 0:06:32.400 the other governors with leadership positions. 0:06:32.160 --> 0:06:36.440 Not permitted under the law. Not what not permitted under 0:06:36.520 --> 0:06:36.920 the law? 0:06:37.600 --> 0:06:40.440 Not. Trump told Bloomberg and June that he might want 0:06:40.520 --> 0:06:42.880 more of us, say in interest rates, though he added 0:06:42.960 --> 0:06:45.760 he let Powell serve out his current term, which ends 0:06:45.800 --> 0:06:46.840 in twenty twenty six. 0:06:47.320 --> 0:06:49.640 Let's turn to the markets. The futures right now, they 0:06:49.720 --> 0:06:53.320 are mixed to little change following another record close on 0:06:53.320 --> 0:06:55.760 Wall Street gues some P five hundred gained seven tenths 0:06:55.760 --> 0:06:58.480 of a percent, the Nasdaq one hundred climbed one and 0:06:58.520 --> 0:07:01.680 a half percent at the closest today. Amanda Gotti, the 0:07:01.760 --> 0:07:05.080 chief investment officer P and C, says the market rally 0:07:05.120 --> 0:07:06.159 is going to continue. 0:07:06.600 --> 0:07:11.480 Typically post election results, we tend to get some nice 0:07:11.520 --> 0:07:14.800 talwins out of the market because there's just some certainty 0:07:15.000 --> 0:07:18.000 out of what happened with the election. But the reality 0:07:18.040 --> 0:07:19.840 is there isn't going to be that much that gets 0:07:19.880 --> 0:07:21.760 done over the next six weeks. 0:07:21.800 --> 0:07:23.560 It's just this idea that. 0:07:24.200 --> 0:07:26.320 The Trump trade or the Trump bump is going to 0:07:26.360 --> 0:07:29.560 be very focused on the potential for cutting corporate tax rates, 0:07:30.120 --> 0:07:33.920 rolling back regulations, and so on and so forth, and 0:07:33.960 --> 0:07:36.680 so the market is just really excited, if not giddy, 0:07:36.840 --> 0:07:37.400 about that. 0:07:37.880 --> 0:07:40.760 P and C Chief investment Officer Amanda Gotti notes the 0:07:40.840 --> 0:07:43.560 S and P five hundred finished with its forty ninth 0:07:43.680 --> 0:07:44.679 record this year. 0:07:45.160 --> 0:07:48.400 Well, John investors are not too impressed with China's latest 0:07:48.440 --> 0:07:51.480 attempt to support the economy. There shiny is stocked and 0:07:51.520 --> 0:07:54.880 the yuana kline after authorities announced a one point for 0:07:55.040 --> 0:07:58.760 a trillion dollar program to refinance local government debt. Beijing 0:07:58.880 --> 0:08:01.600 is rolling out more measures to support a slowing economy 0:08:01.640 --> 0:08:07.480 facing new risks from the reelection of Donald Trump. And 0:08:07.560 --> 0:08:08.960 it's time now for look at some of the other 0:08:09.080 --> 0:08:11.720 stories making news in New York and around the world. 0:08:11.760 --> 0:08:14.640 And for that we're joined by Bloomberg's Amy morris Any. 0:08:14.680 --> 0:08:15.200 Good morning. 0:08:15.360 --> 0:08:17.960 Leaders of Israel and the Netherlands are condemning what they 0:08:18.000 --> 0:08:21.280 called anti Semitic attacks on fans of soccer club Makibi 0:08:21.360 --> 0:08:24.600 Tel Aviv before and after a Europa League soccer match. 0:08:24.880 --> 0:08:27.680 The violence erupted despite a ban on a pro Palestinian 0:08:27.720 --> 0:08:31.440 demonstration near the soccer stadium. Five people are hospitalized, more 0:08:31.440 --> 0:08:35.080 than sixty are detained. Declared's details are not clear, but 0:08:35.240 --> 0:08:38.160 Israel ordered two planes be sent to the Dutch capital 0:08:38.360 --> 0:08:41.760 to bring those Israelis home. A rapidly growing brush fire 0:08:41.920 --> 0:08:45.160 in the LA area has burned out of control, destroying 0:08:45.200 --> 0:08:50.080 homes and triggering evacuations northwest of Malibu. Ventura County Sheriff 0:08:50.200 --> 0:08:51.040 Jim Freihoff. 0:08:51.160 --> 0:08:54.600 To date, we've evacuated over four hundred homes, two hundred 0:08:54.600 --> 0:08:57.280 and fifty residents choosing to stay and protect their homes, 0:08:58.040 --> 0:09:00.680 and there were eight hundred homes no one was home still, 0:09:00.720 --> 0:09:04.200 assuming they had either left before we arrived, were at work, 0:09:04.280 --> 0:09:05.240 or otherwise out of town. 0:09:05.360 --> 0:09:08.280 Hundreds of firefighters of battling the blaze. More than fourteen 0:09:08.440 --> 0:09:11.920 thousand evacuation orders are sent. The FBI says it's in 0:09:11.960 --> 0:09:15.360 touch with the Justice Department over racist text messages sent 0:09:15.400 --> 0:09:18.480 to block Americans across the country. The texts, which were 0:09:18.520 --> 0:09:22.400 sent anonymously, addressed the recipients by name and told them 0:09:22.440 --> 0:09:25.720 they'd be selected for quote cotton picking. Some of the 0:09:25.880 --> 0:09:29.920 messages referenced President elect Donald Trump. His spokespeople say they 0:09:29.960 --> 0:09:32.559 have nothing to do with that. A Detroit resident named 0:09:32.600 --> 0:09:35.920 Renee received one of the texts a plantation to send 0:09:36.000 --> 0:09:37.280 us back to a plantation. 0:09:38.400 --> 0:09:39.160 Great uncalled. 0:09:39.600 --> 0:09:41.760 And now CBS News is reporting some of those texts 0:09:41.800 --> 0:09:44.520 were sent to a voicemail identifying them as users of 0:09:44.559 --> 0:09:47.680 text Now, a provider that allows users to create phone 0:09:47.720 --> 0:09:50.240 numbers for free. The service says it has shut down 0:09:50.280 --> 0:09:52.839 those accounts. Global News twenty four hours a day and 0:09:52.880 --> 0:09:55.560 whenever you want it with Bloomberg News Now, I'm Amy 0:09:55.640 --> 0:09:57.439 Morris and this is Bloomberg. 0:09:57.679 --> 0:10:00.640 Let's get the sports update. And for that, here is 0:10:00.800 --> 0:10:03.280 John Stasher at John Good morning, all right, good morning. 0:10:03.120 --> 0:10:05.880 John Wild Thursday night game to kick off Week ten 0:10:05.960 --> 0:10:08.600 Bengals Ravens and AFC North battle in Baltimore that saw 0:10:08.640 --> 0:10:12.360 Cincinnati go up by two touchdowns. Baltimore rallied second half, 0:10:12.640 --> 0:10:15.680 had a Lamar Jackson eighty four yard TV pass and 0:10:15.679 --> 0:10:18.240 then a Joe Burrow seventy yard and a Jamar chase. 0:10:18.320 --> 0:10:21.120 Those two hooked up with thirty eight seconds that since 0:10:21.160 --> 0:10:23.880 he decided to go for a game winning two point conversion, 0:10:24.120 --> 0:10:27.160 but rather than the extra point in overtime incomplete pass 0:10:27.280 --> 0:10:30.559 Baltimore one thirty five thirty four. Both the QBS through 0:10:30.640 --> 0:10:33.520 four TV passes. Three of burrows went to Chase who 0:10:33.559 --> 0:10:35.400 had two hundred and sixty four yards in reception. 0:10:35.559 --> 0:10:36.320 Jackson now ten. 0:10:36.240 --> 0:10:39.400 In one lifetime against Cincinnati. Next game up Sunday morning, 0:10:39.480 --> 0:10:42.800 New York Times Giants and Carolina in Munich. Giants flew 0:10:42.800 --> 0:10:45.200 out yesterday, and before they did, Daniel Jones recalled his 0:10:45.280 --> 0:10:46.760 previous trip to Europe. 0:10:47.240 --> 0:10:50.480 We're excited to go over there. I think, you know, 0:10:50.640 --> 0:10:53.880 just the one experience I have to look back on 0:10:53.920 --> 0:10:57.720 as the London trip and just you know how how 0:10:57.800 --> 0:11:01.000 much energy and excitement there was in that stadium and 0:11:01.400 --> 0:11:04.400 the fans and how into it they are. You know, 0:11:04.480 --> 0:11:06.120 that was a really really cool experience. 0:11:06.240 --> 0:11:08.520 Giants won that game two years ago with the Packers. 0:11:08.520 --> 0:11:10.120 That was part of a six and one start to 0:11:10.160 --> 0:11:13.480 that season. Since then, the Giants had twelve wins twenty 0:11:13.559 --> 0:11:16.160 five losses. That the Garden very much an off night 0:11:16.240 --> 0:11:18.480 three gor says Turk, and gave it five goals midway 0:11:18.480 --> 0:11:21.120 through the game, got pulled Buffalo all over the Rangers 0:11:21.160 --> 0:11:22.760 six to one, Islanders beat out of a four to 0:11:22.800 --> 0:11:25.720 two Devil's beat Montreal five to three Bruins and overtime 0:11:25.760 --> 0:11:28.000 win over Calgary. Nick to Night hosts Milwaukee Nets are 0:11:28.000 --> 0:11:30.800 in Boston, and the seven to one Warriors visit nine 0:11:30.840 --> 0:11:33.360 in Old Cleveland. Johns Stasheward Bloomberg. 0:11:32.920 --> 0:11:39.400 Sports Coast to Coast on Bloomberg Radio, nationwide on Sirius XM, 0:11:39.520 --> 0:11:42.400 and around the world on Bloomberg dot Com and the 0:11:42.440 --> 0:11:45.840 Bloomberg Business at This is Bloomberg Daybreak. 0:11:47.000 --> 0:11:49.320 Hey, good morning, I'm John Tucker. Of course, the battle 0:11:49.360 --> 0:11:52.040 for control of the House still hasn't concluded, but a 0:11:52.080 --> 0:11:54.400 red sweep does look more and more likely after Donald 0:11:54.440 --> 0:11:58.440 Trump's election victory, and also Trump picks his chief of staff. 0:11:58.920 --> 0:12:01.400 Let's get around up with the late election related stories 0:12:01.440 --> 0:12:05.120 this morning. Stephanie Baker, Bloomberg News senior writer, is joining 0:12:05.160 --> 0:12:08.440 us this morning. Always a pleasure, Stephanie. If there is 0:12:08.679 --> 0:12:12.040 a red sweep in the House, what kind of majority 0:12:12.120 --> 0:12:14.520 are we looking at right now? If it is a 0:12:14.559 --> 0:12:17.280 slim majority, does that actually narrow the scope of what 0:12:17.360 --> 0:12:17.920 can pass? 0:12:19.559 --> 0:12:20.440 Really good question. 0:12:20.760 --> 0:12:24.120 It does look like of the remaining uncalled seats, the 0:12:24.160 --> 0:12:26.120 majority are leaning Republican. 0:12:26.360 --> 0:12:27.760 We'll see how that shakes out. 0:12:28.520 --> 0:12:32.360 That they could have at least a handful of seats 0:12:32.840 --> 0:12:37.120 for the Republicans. A slim majority, but enough to get 0:12:37.160 --> 0:12:41.320 their agenda passed. And let's face it, this is a 0:12:41.440 --> 0:12:47.320 huge sweep by the Republicans control of the Senate, likely 0:12:47.360 --> 0:12:53.040 control of the House, and a Supreme Court where Donald 0:12:53.040 --> 0:12:57.319 Trump has chosen and picked several of the judges. So 0:12:57.520 --> 0:12:59.920 I think this is going to give Trump quite a 0:13:00.280 --> 0:13:04.160 wide mandate and quite sweeping powers to get his agenda across. 0:13:04.520 --> 0:13:06.880 Just for the tally so far, the GOP holds a 0:13:06.920 --> 0:13:09.800 two hundred and eleven to one ninety nine edge in 0:13:09.920 --> 0:13:12.360 a House races that those of that have been called 0:13:12.400 --> 0:13:16.960 so far to eighteen is the majority. There are a 0:13:17.040 --> 0:13:20.360 number of people, including Speaker Johnson, who says he's a 0:13:20.400 --> 0:13:25.280 free trade proponent. Back to the agenda, is it really 0:13:25.360 --> 0:13:28.360 clear sailing for the Trump agenda if this pans out. 0:13:30.240 --> 0:13:32.520 I think what Trump has said he wants to do 0:13:32.679 --> 0:13:35.840 is going to be harder to do in practice. He 0:13:35.920 --> 0:13:40.200 said he wants to deport a million immigrants on day one. 0:13:40.400 --> 0:13:43.200 I think that's going to be very hard just practically 0:13:43.240 --> 0:13:49.120 to carry out. He wants to impose sweeping tariffs. Now 0:13:49.480 --> 0:13:54.280 you know, under the Constitution, the Congress has a mandate 0:13:54.360 --> 0:13:59.160 to control tariffs, but they are also statutory regulations that 0:13:59.200 --> 0:14:03.160 give the president authority to do that. Under the International 0:14:03.160 --> 0:14:07.080 Economic Powers Act, which is the Act that the Biden 0:14:07.080 --> 0:14:12.080 administration has used to roll out sanctions against Russia, Trump 0:14:12.160 --> 0:14:16.760 could use AIPA at this Act to roll out tariffs. 0:14:17.880 --> 0:14:21.680 Whether or not he will face opposition from Republicans in 0:14:21.760 --> 0:14:25.120 Congress for his tariffs that in a way that would 0:14:25.200 --> 0:14:27.480 stop him from going ahead with this, I don't know. 0:14:28.240 --> 0:14:30.680 I think we're going to definitely see tariffs on some level, 0:14:30.720 --> 0:14:32.680 whether or not they'll be as sweeping as Trump has 0:14:32.720 --> 0:14:34.320 talked about remains to be seen. 0:14:34.440 --> 0:14:38.640 As Chief of Staff, is Susie Wiles's calming, reasonable voice 0:14:38.760 --> 0:14:39.760 in this administration. 0:14:41.000 --> 0:14:43.360 It's a really interesting pick. She's the first woman to 0:14:43.440 --> 0:14:47.600 hold that position. She's been a very quiet figure. She's 0:14:47.640 --> 0:14:50.400 not on social media much, she's not a regular on 0:14:50.520 --> 0:14:55.680 Fox News, and she's not a Washington insider, So that 0:14:55.800 --> 0:15:01.720 could spell trouble for her going forward. With Republicans likely 0:15:01.760 --> 0:15:04.000 in control of both houses of Congress, that might not 0:15:04.160 --> 0:15:07.320 matter as much as it would in the past. She 0:15:08.280 --> 0:15:13.680 has remained as Trump's campaign chairman throughout the campaign, which 0:15:13.760 --> 0:15:16.480 was not the case last time around, which shows that 0:15:16.560 --> 0:15:20.200 she does have staying power, and she was applauded for 0:15:20.280 --> 0:15:23.080 having brought order to the Trump campaign. She may not 0:15:23.120 --> 0:15:26.320 have been able to control Trump the candidate and his messaging, 0:15:26.680 --> 0:15:28.920 but she ran a very tight operation, and I think 0:15:28.960 --> 0:15:31.360 that's indicative of what she'll bring to the White House. 0:15:31.680 --> 0:15:34.800 Way too short of visit, Stephanie Baker, Bloomberg News Senior writer, 0:15:34.960 --> 0:15:37.520 Thank you very much, Karen well John. 0:15:37.560 --> 0:15:39.600 We now want to bring you our discussion with our 0:15:39.760 --> 0:15:44.119 investment CEO, Kathy Wood. She joined Tim Stenoveek on Bloomberg 0:15:44.160 --> 0:15:47.320 Business Week discussing what a second Trump term means for 0:15:47.480 --> 0:15:50.640 investors and how it could reshape the financial industry. They 0:15:50.680 --> 0:15:54.200 began with a question on the regulatory environment in the US. 0:15:54.400 --> 0:15:58.840 Let's listen in the regulations that have been creeping into 0:15:58.880 --> 0:16:02.560 the system. Actually they started to creep in. They've just 0:16:02.600 --> 0:16:09.160 flooded the system and really gummed it up. So the 0:16:09.200 --> 0:16:13.920 first the biggest regulatory issues have been around the SEC, 0:16:14.320 --> 0:16:19.520 especially when it comes to digital assets or crypto legislation 0:16:20.680 --> 0:16:26.400 and the FTCs as it relates to M and A activity, 0:16:27.120 --> 0:16:29.640 I think both they are going to be big changes 0:16:29.680 --> 0:16:33.880 there and that is going to be the beginning. I 0:16:33.880 --> 0:16:39.320 think of a lot of regulatory changes. In his first administration, 0:16:39.520 --> 0:16:44.240 President Trump basically said for every regulation you want to 0:16:44.320 --> 0:16:48.400 introduce anyone in my administration, you must get rid of too. 0:16:48.840 --> 0:16:52.360 I think it's going to be maybe more dramatic than 0:16:52.400 --> 0:16:57.160 that this time around. And I also think having having 0:16:57.240 --> 0:17:00.520 Elon Musk, who I think today announced that he'd like 0:17:00.800 --> 0:17:05.320 to name a new department, the Department of Government Efficiency. 0:17:06.280 --> 0:17:12.359 Get that, Doge doage he I think he's going to 0:17:12.520 --> 0:17:15.919 come into the administration. I don't think he'll be a 0:17:16.040 --> 0:17:19.040 formal part of the administration. He'll be more in an 0:17:19.080 --> 0:17:22.280 oversight role the more as I understand. 0:17:22.880 --> 0:17:25.239 Yeah, well, hey, Kathy, I want to jump in here 0:17:25.280 --> 0:17:26.600 because you mentioned a few things that I want to 0:17:26.640 --> 0:17:29.280 follow up on. What is Elon Musk? Have you talked 0:17:29.320 --> 0:17:31.000 to Elon since the election? 0:17:31.880 --> 0:17:32.040 No? 0:17:32.080 --> 0:17:34.480 I have not talked to him since the election. I 0:17:34.520 --> 0:17:39.280 did see on X that he was part of the 0:17:39.280 --> 0:17:43.760 family as they were taking the picture around President Trump's 0:17:44.160 --> 0:17:48.960 acceptance speech, So you know, I know he's obviously had 0:17:49.160 --> 0:17:50.639 a tremendous impact on. 0:17:52.720 --> 0:17:53.240 The election. 0:17:53.520 --> 0:17:56.560 I think he had X made a big difference, and 0:17:57.920 --> 0:18:04.520 his ideas around government efficient, which will revolve importantly around technology. 0:18:04.720 --> 0:18:11.200 Artificial intelligence is doing wonders for the most bureaucratic organizations 0:18:11.240 --> 0:18:15.879 out there. We know from Pallunteer that it is having 0:18:15.880 --> 0:18:23.440 a tremendous impact on insurance companies, underwriting process timelines dropping 0:18:23.520 --> 0:18:27.800 from two weeks to three hours. And even in the 0:18:27.800 --> 0:18:35.239 military MAVEN pallunteers working on MAVEN with the DoD for 0:18:35.400 --> 0:18:40.160 targeting the enemy, they have shrunk that department. They don't 0:18:40.200 --> 0:18:43.399 need as many people. They've gone from twenty to twenty people, 0:18:44.560 --> 0:18:47.120 which it's pretty amazing what's going on. And I think 0:18:47.320 --> 0:18:53.000 we'll see a lot of attrition. Any employee leaving the 0:18:53.040 --> 0:18:56.280 government probably will not be replaced. I don't think he'll 0:18:57.280 --> 0:19:01.960 I just I don't think he'll do two trillion dollars 0:19:02.000 --> 0:19:06.120 in government spending savings in one year. That might be 0:19:06.600 --> 0:19:10.320 a five to ten year And I think between technology 0:19:10.320 --> 0:19:15.280 and attrition and lower regulations, maybe the abolition of certain 0:19:15.280 --> 0:19:18.880 departments that they'll go a long way. 0:19:18.960 --> 0:19:21.280 So you don't see him serving a formal role, but 0:19:21.440 --> 0:19:25.240 still overseeing some sort of department of government efficiency in 0:19:25.280 --> 0:19:27.760 an informal way. Help me understand what you see him 0:19:27.760 --> 0:19:29.880 doing and whether or not it could be some sort 0:19:29.920 --> 0:19:32.200 of threat to you know, he's a very busy man. 0:19:32.680 --> 0:19:36.440 He is the inventor of our age, and he comes 0:19:36.480 --> 0:19:41.520 into a problem, assesses it with first principles thinking, doesn't 0:19:41.720 --> 0:19:45.800 care how things have been done, and comes back with, 0:19:46.359 --> 0:19:52.919 you know, ingenious solutions to big problems, whether it's autonomous mobility, 0:19:52.960 --> 0:19:54.920 in the autonomous taxi space. 0:19:56.240 --> 0:19:57.359 Or in. 0:19:58.880 --> 0:20:07.000 The healthcare neuralink. He's in the social network space X 0:20:07.840 --> 0:20:11.800 in AI XAI, and a lot of people say and 0:20:11.960 --> 0:20:15.800 SpaceX of course the entire exploration going to Mars. I 0:20:15.800 --> 0:20:19.720 think a lot of people are I can't believe he 0:20:19.760 --> 0:20:23.159 can do this, But again, he cuts to the quick, 0:20:24.280 --> 0:20:28.920 first principles thinking and surrounds himself with brilliant people, people 0:20:28.920 --> 0:20:32.240 who really want to solve the hardest problems in the world. 0:20:32.520 --> 0:20:34.800 And that's part of the secret to his success. Very 0:20:34.840 --> 0:20:38.080 high standards and people who want to be held accountable 0:20:38.080 --> 0:20:41.399 to very high standards and want to really transform the world. 0:20:41.720 --> 0:20:43.840 Hey, we're going to get back to Elon and specifically 0:20:43.840 --> 0:20:45.159 Tesla in a few minutes, but I want to go 0:20:45.280 --> 0:20:47.639 back to something that you mentioned at the top of 0:20:47.640 --> 0:20:50.080 our interview, Kathy, and that's the idea of some of 0:20:50.119 --> 0:20:53.040 the regulatory challenges that you said have cropped up over 0:20:53.080 --> 0:20:55.280 the last couple of years and during the Biden administration 0:20:55.320 --> 0:20:58.800 specifically with regard to the FTC and the SEC not 0:20:58.920 --> 0:21:02.440 being present the second Trump administration, how do you think 0:21:02.520 --> 0:21:06.040 the Trump regime will approach financial regulation given that he's 0:21:06.080 --> 0:21:09.639 bound to replace SEC Chair Gary Gensler, What does that 0:21:09.680 --> 0:21:10.000 look like? 0:21:10.720 --> 0:21:15.280 I think, first, as it relates to crypto or digital 0:21:15.400 --> 0:21:21.840 asset regulation, they're going to replace Gary Gensler with someone 0:21:22.240 --> 0:21:25.840 who is much more open minded, I would say, and 0:21:26.280 --> 0:21:32.679 will let the legislative process work go to work. And 0:21:32.960 --> 0:21:37.080 the SEC is supposed to regulate and force laws. They're 0:21:37.119 --> 0:21:41.560 not supposed to create laws by enforcement, which is what 0:21:42.200 --> 0:21:46.000 Gary Gensler was doing. So I think that's going to 0:21:46.000 --> 0:21:49.439 be important. I also think if you look at the 0:21:49.480 --> 0:21:54.480 public equity markets, I think the number of public companies 0:21:54.520 --> 0:21:57.760 out there right now has been cut in half in 0:21:57.880 --> 0:22:03.960 the last fifteen twenty years. The regulatory nightmare of being 0:22:04.000 --> 0:22:08.320 a public company has kept people, has kept leaders of 0:22:08.400 --> 0:22:11.199 companies basically saying if I don't have to go public, 0:22:11.280 --> 0:22:14.680 I am not going public. And so I think we're 0:22:14.720 --> 0:22:19.120 going to see a lot more work in that regard 0:22:19.200 --> 0:22:23.960 to give you the average investor a shot at some 0:22:24.119 --> 0:22:28.160 of these moonshots, so I think that's going to become 0:22:28.400 --> 0:22:29.320 very important. 0:22:29.640 --> 0:22:33.040 This is Bloomberg Daybreak, your morning podcast on the stories 0:22:33.119 --> 0:22:36.160 making news from Wall Street to Washington and beyond. 0:22:36.520 --> 0:22:38.919 Look for us on your podcast feed by six am 0:22:39.000 --> 0:22:42.800 Eastern each morning, on Apple, Spotify, or anywhere else you listen. 0:22:43.040 --> 0:22:45.880