1 00:00:02,080 --> 00:00:06,360 Speaker 1: Live from our nation's capital. This is Bloomberg Sound on 2 00:00:07,440 --> 00:00:10,520 Speaker 1: the fundamentals are there for inflation? I think for a 3 00:00:10,720 --> 00:00:14,600 Speaker 1: why we don't necessarily need free money and zero interest 4 00:00:14,680 --> 00:00:17,319 Speaker 1: rates forever. Washington at this point doesn't want to add 5 00:00:17,360 --> 00:00:22,480 Speaker 1: regulation to Bitcoin's Bloomberg Sound on the insiders, the influencers, 6 00:00:22,520 --> 00:00:25,800 Speaker 1: the inside. Let's look at the student loan debt, which 7 00:00:25,840 --> 00:00:30,480 Speaker 1: is absolutely staggering. My view, you can't spend enough on infrastructure. 8 00:00:30,680 --> 00:00:34,000 Speaker 1: Given the size of fiscal stimulus we've already seen, this 9 00:00:34,000 --> 00:00:36,800 Speaker 1: seems like a drop in the bucket. Sloomberg Sound On 10 00:00:37,000 --> 00:00:42,840 Speaker 1: with Joe Matthew on Bloomberg Radio Live from Washington. Were 11 00:00:42,840 --> 00:00:48,880 Speaker 1: the conversation over infrastructure. The budget reconciliation is evolving, changing 12 00:00:48,920 --> 00:00:50,920 Speaker 1: before our eyes. We'll bring you the latest from the 13 00:00:50,920 --> 00:00:54,160 Speaker 1: White House and from Capitol Hill with help from Bloomberg. 14 00:00:54,200 --> 00:00:58,680 Speaker 1: Government's Emily Wilkins. Been talking with lawmakers since President Biden 15 00:00:58,720 --> 00:01:04,280 Speaker 1: clarified his remark about the legislative strategy behind infrastructure, and 16 00:01:04,280 --> 00:01:07,080 Speaker 1: we're gonna be talking about that with a former Republican 17 00:01:07,080 --> 00:01:09,720 Speaker 1: governor of Pennsylvania, Mark Schweiker, will be here as well. 18 00:01:09,720 --> 00:01:13,440 Speaker 1: Congressman John Gara Mendi, a Democrat, from Californian will assemble 19 00:01:13,480 --> 00:01:16,680 Speaker 1: the panel for perspectives on the way forward. How far 20 00:01:16,840 --> 00:01:20,840 Speaker 1: we have come since last week? The President Biden clarifying 21 00:01:20,920 --> 00:01:25,520 Speaker 1: remarks on infrastructure legislation to make clear that he was 22 00:01:25,560 --> 00:01:29,160 Speaker 1: not threatening to veto the very bipartisan bill that he 23 00:01:29,240 --> 00:01:33,600 Speaker 1: was championing without the human infrastructure legislation that is set 24 00:01:33,680 --> 00:01:36,000 Speaker 1: to move through reconciliation. At least that's the plan of 25 00:01:36,120 --> 00:01:39,720 Speaker 1: some lawmakers, especially Republican senators who helped to negotiate the 26 00:01:39,760 --> 00:01:43,240 Speaker 1: bipartisan deal, felt a bit blindsided when they learned the 27 00:01:43,240 --> 00:01:47,319 Speaker 1: two pieces would have to move together. That was followed 28 00:01:47,360 --> 00:01:52,960 Speaker 1: by the clarifying statement, and now have they decoupled. White 29 00:01:52,960 --> 00:01:56,400 Speaker 1: House Press Secretary Jensaki was repeatedly asked about this by 30 00:01:56,440 --> 00:01:59,680 Speaker 1: reporters today. If that was the case, here's a little taste. 31 00:02:00,040 --> 00:02:03,280 Speaker 1: President body intend to tell congressional leaders what to do 32 00:02:03,320 --> 00:02:06,400 Speaker 1: on this better. Well, first, let me just reiterate the 33 00:02:06,440 --> 00:02:09,680 Speaker 1: President looks forward to signing each bill. Did the President 34 00:02:09,800 --> 00:02:15,240 Speaker 1: earlier miscommunicator? Did Republican simply misunderstand on the instruction? Well, 35 00:02:15,440 --> 00:02:18,120 Speaker 1: I will say major that I think that the statement 36 00:02:18,200 --> 00:02:21,000 Speaker 1: was quite lengthy and quite detailed in the in the 37 00:02:21,040 --> 00:02:24,200 Speaker 1: President's name, the infrastructure bill reaches his desk and it 38 00:02:24,240 --> 00:02:27,520 Speaker 1: comes alone, he will sign it. Is that an accurate 39 00:02:27,520 --> 00:02:31,520 Speaker 1: reading of that statement in the president the President looks 40 00:02:31,560 --> 00:02:34,880 Speaker 1: forward to and expects to sign each piece of legislation 41 00:02:35,040 --> 00:02:38,320 Speaker 1: into law. This went over and over and over, and 42 00:02:38,360 --> 00:02:41,160 Speaker 1: followed comments from Mitch McConnell earlier in the day. The 43 00:02:41,200 --> 00:02:45,840 Speaker 1: Minority Leader spoke from his home state of Kentucky about this. 44 00:02:46,040 --> 00:02:47,760 Speaker 1: What I did this morning is to call on the 45 00:02:47,800 --> 00:02:51,840 Speaker 1: President to ash the Majority leader and the Speaker to 46 00:02:52,320 --> 00:02:59,840 Speaker 1: deal with these issues separately. None of the Republicans during 47 00:02:59,840 --> 00:03:04,320 Speaker 1: the negotiations and the Democrats that were in the group 48 00:03:05,200 --> 00:03:09,480 Speaker 1: talked about it being linked to anything else. We're joined 49 00:03:09,480 --> 00:03:12,600 Speaker 1: out by Bloomberg Government's Emily Wilkins been covering this very 50 00:03:12,639 --> 00:03:15,600 Speaker 1: closely for us. Welcome back, Emily, is great to have you, 51 00:03:16,919 --> 00:03:20,160 Speaker 1: Great to be here. Does kick off a week? Yeah, well, 52 00:03:20,200 --> 00:03:22,320 Speaker 1: you know, we're starting it a little bit differently than 53 00:03:22,360 --> 00:03:24,639 Speaker 1: we ended it. Things have changed since we spoke when 54 00:03:24,680 --> 00:03:26,960 Speaker 1: the bipartisan deal was announced last week. You were with 55 00:03:27,040 --> 00:03:31,040 Speaker 1: us that day. A couple of big exceptions of things 56 00:03:31,040 --> 00:03:34,240 Speaker 1: that haven't changed here Nancy Pelosi and Chuck Schumer. Are 57 00:03:34,280 --> 00:03:38,640 Speaker 1: they President Biden's biggest problem right now. So I think, 58 00:03:38,760 --> 00:03:43,640 Speaker 1: right now, President Biden, this is everything we've seen in 59 00:03:43,720 --> 00:03:46,800 Speaker 1: the last seventy two hours, I think just goes to 60 00:03:46,840 --> 00:03:50,440 Speaker 1: show you exactly how complicated it to get this built through. 61 00:03:50,920 --> 00:03:54,560 Speaker 1: Even after President Biden says that he has this agreement 62 00:03:54,640 --> 00:03:58,200 Speaker 1: with senators, like how tenuous things are. I mean, let's 63 00:03:58,240 --> 00:04:01,840 Speaker 1: be clear, it was never a big secret that Democrats 64 00:04:01,880 --> 00:04:06,160 Speaker 1: were planning this stul track operation with the bipartisan infrastructure 65 00:04:06,160 --> 00:04:09,320 Speaker 1: built in one lane and then the Democrat backed reconciliation 66 00:04:09,400 --> 00:04:12,240 Speaker 1: package in the other lane. And initially seemed like after 67 00:04:12,320 --> 00:04:15,400 Speaker 1: Biden went ahead and clarified that he wasn't going to 68 00:04:15,520 --> 00:04:18,800 Speaker 1: issue a veto threat to the bipartisan bill, you heard 69 00:04:18,839 --> 00:04:21,760 Speaker 1: from senators like Romney who said, you know what his 70 00:04:21,800 --> 00:04:24,800 Speaker 1: Biden statement called the waters people are still on board. 71 00:04:24,880 --> 00:04:28,159 Speaker 1: Everything's gonna be fine. And now today you're seeing Mitch 72 00:04:28,240 --> 00:04:31,240 Speaker 1: McConnell go ahead and say, well, it's great that Biden 73 00:04:31,320 --> 00:04:34,039 Speaker 1: said that, but what about Pelosi? What about Chuck Schumer? 74 00:04:34,400 --> 00:04:36,600 Speaker 1: At the same point, McConnell can say that, but the 75 00:04:36,640 --> 00:04:39,160 Speaker 1: same point Pelosi and Schumer have to deal with their 76 00:04:39,200 --> 00:04:42,240 Speaker 1: own realities, and the reality is that Democrats do not 77 00:04:42,400 --> 00:04:45,440 Speaker 1: have a lot of peace to lose, and progressive numbers 78 00:04:45,520 --> 00:04:48,719 Speaker 1: have come out and said, look, we are worried that 79 00:04:48,760 --> 00:04:52,080 Speaker 1: if we vote for just this bipartisan infrastructure plan and 80 00:04:52,120 --> 00:04:56,359 Speaker 1: there's no reconciliation, that reconciliation won't get done, that you 81 00:04:56,440 --> 00:05:00,080 Speaker 1: won't see moderate like Joe Mansion and Kirsten Senma go 82 00:05:00,120 --> 00:05:02,520 Speaker 1: ahead and do it. And they said, you know, we've asked, hey, 83 00:05:02,600 --> 00:05:04,599 Speaker 1: is it is it enough that they just promised to 84 00:05:04,640 --> 00:05:07,279 Speaker 1: do it, and they say no, they actually need a build, 85 00:05:07,320 --> 00:05:10,040 Speaker 1: they get something they can sign. They want that guarantee 86 00:05:10,040 --> 00:05:13,360 Speaker 1: and that reassurance. And for progresses, the way they see 87 00:05:13,360 --> 00:05:15,400 Speaker 1: it is that it's the mid terms on the line 88 00:05:15,520 --> 00:05:18,599 Speaker 1: that if Democrats don't go big and don't deliver, then 89 00:05:18,600 --> 00:05:21,840 Speaker 1: they have zero chance of keeping the House in two 90 00:05:22,000 --> 00:05:25,080 Speaker 1: already a very difficult path. So I think at this 91 00:05:25,120 --> 00:05:27,400 Speaker 1: point we're just sort of seeing the difficulty of holding 92 00:05:27,520 --> 00:05:31,160 Speaker 1: everyone together, trying to hold those Senate Republicans together while 93 00:05:31,200 --> 00:05:34,200 Speaker 1: you hold those progressives in the House and in the Senate. 94 00:05:34,480 --> 00:05:36,200 Speaker 1: And I think to a certain extent, I mean, look, 95 00:05:36,240 --> 00:05:38,640 Speaker 1: you did, seems McConnell come out today and make this 96 00:05:38,720 --> 00:05:41,920 Speaker 1: request of Gelosi and humor to clarify that they would 97 00:05:41,960 --> 00:05:46,080 Speaker 1: decouple like Biden would decouple. But the same point, McConnell 98 00:05:46,120 --> 00:05:48,920 Speaker 1: hasn't come out and opposed this bipartisan deal. He said 99 00:05:48,960 --> 00:05:51,360 Speaker 1: that he would like something to get done. So I 100 00:05:51,400 --> 00:05:54,320 Speaker 1: think at this point everyone's trying to steal out exactly 101 00:05:54,360 --> 00:05:56,800 Speaker 1: how much they can push on various pieces and how 102 00:05:56,839 --> 00:06:00,440 Speaker 1: much leverage they have in this overall debate. Great job 103 00:06:00,520 --> 00:06:03,560 Speaker 1: putting that all together, Bloomberg Government correspondent Emily Wilkins. We 104 00:06:03,640 --> 00:06:05,920 Speaker 1: thank you as ever for helping to kick off the 105 00:06:05,960 --> 00:06:08,159 Speaker 1: program here. That should give you a sense of where 106 00:06:08,200 --> 00:06:09,680 Speaker 1: we are here, and we want to get out of 107 00:06:09,680 --> 00:06:12,960 Speaker 1: Washington for just a moment and talk with Mark Schweiker, 108 00:06:13,000 --> 00:06:15,320 Speaker 1: the former governor of Pennsylvania, for a bit of a 109 00:06:15,360 --> 00:06:17,720 Speaker 1: different view on this debate. Governor, it's great to have 110 00:06:17,760 --> 00:06:21,640 Speaker 1: you on Bloomberg Sound On. Thanks Joe, And I think 111 00:06:21,720 --> 00:06:25,560 Speaker 1: what was raised is just the difficulty, uh and the 112 00:06:25,640 --> 00:06:28,720 Speaker 1: inability for horse trading to pay off very quickly, even 113 00:06:28,760 --> 00:06:31,799 Speaker 1: with the President's backing and even with this so called 114 00:06:32,000 --> 00:06:35,960 Speaker 1: arrangement or understanding with leading members of the Senate, particularly 115 00:06:36,279 --> 00:06:39,520 Speaker 1: Senator McConnell out of Kentucky. So he's trying the President. 116 00:06:39,520 --> 00:06:41,159 Speaker 1: I'm sure I was trying to hold it together. I 117 00:06:41,200 --> 00:06:45,839 Speaker 1: think he's dealing with a resistant progressive wing of the membership, 118 00:06:45,960 --> 00:06:48,560 Speaker 1: particularly in the House. And I think they've got to 119 00:06:48,560 --> 00:06:51,920 Speaker 1: ask themselves, uh, you know, do they want to jeopardize 120 00:06:52,400 --> 00:06:56,320 Speaker 1: the tremendous economics reward that comes from you know, pothole 121 00:06:56,440 --> 00:07:01,760 Speaker 1: free highways uh and and interstates that how uh economic 122 00:07:01,839 --> 00:07:05,640 Speaker 1: success and jobs and paychecks for the motorists and the 123 00:07:05,720 --> 00:07:11,600 Speaker 1: residents over this unconventional soft program aspect relative to the 124 00:07:11,600 --> 00:07:14,720 Speaker 1: American Families plans. So you know, at some point they've 125 00:07:14,760 --> 00:07:17,960 Speaker 1: always got to be adults and make the decision because 126 00:07:18,440 --> 00:07:23,000 Speaker 1: the conventional infrastructure plan generates tremendous reward. And I say 127 00:07:23,040 --> 00:07:26,400 Speaker 1: that as as the governor former governor of a state 128 00:07:26,400 --> 00:07:30,040 Speaker 1: where we've got more highway and murcadam and concrete out 129 00:07:30,080 --> 00:07:33,040 Speaker 1: there uh than all the New England states combined plus 130 00:07:33,040 --> 00:07:34,880 Speaker 1: New York. So it's got a lot to do with 131 00:07:34,880 --> 00:07:38,240 Speaker 1: our economic performance as a commonwealth of Pennsylvania. And I 132 00:07:38,280 --> 00:07:41,840 Speaker 1: would suggest that all members of the House, in the Senate, 133 00:07:41,840 --> 00:07:46,520 Speaker 1: particularly progress is realized that over the years that infrastructure 134 00:07:46,600 --> 00:07:52,320 Speaker 1: support has generated tremendous goodwill and economic success for our country. Well, 135 00:07:52,360 --> 00:07:55,240 Speaker 1: that's okay, So we're starting off with with some news here. 136 00:07:55,280 --> 00:07:58,880 Speaker 1: As a Republican, then as a Republican former governor, you 137 00:07:58,960 --> 00:08:02,360 Speaker 1: like the bi partisan deal as it as it's written, 138 00:08:02,640 --> 00:08:05,520 Speaker 1: so to speak, what we know is inside that package. 139 00:08:06,080 --> 00:08:09,560 Speaker 1: You're not prepared to have that debate about human infrastructure. 140 00:08:09,640 --> 00:08:14,800 Speaker 1: Is that fair? Well, I'd like to discuss it categorically, 141 00:08:14,880 --> 00:08:18,240 Speaker 1: no question in my mind that the federal role in 142 00:08:18,240 --> 00:08:22,000 Speaker 1: infrastructure is right up there with you know, the efficacy 143 00:08:22,040 --> 00:08:25,680 Speaker 1: of the Social Security program started Dedicaid to go up 144 00:08:25,680 --> 00:08:28,080 Speaker 1: there with the establishment of the e p A and 145 00:08:29,000 --> 00:08:32,240 Speaker 1: a cleaner environment. These are success stories for the federal government. 146 00:08:32,280 --> 00:08:38,240 Speaker 1: It's the same for conventional infrastructure. So as I see it, 147 00:08:38,320 --> 00:08:41,800 Speaker 1: in the short term, let's get that done. But relative 148 00:08:41,880 --> 00:08:45,280 Speaker 1: to the soft programming and you know, relative childcare as 149 00:08:45,280 --> 00:08:48,560 Speaker 1: an example, Joe or pre K education, which you know, 150 00:08:48,640 --> 00:08:54,320 Speaker 1: these programmatically are winners for America's children. But we've never 151 00:08:54,400 --> 00:08:58,120 Speaker 1: had this situation where, uh, you know, the soft program 152 00:08:58,240 --> 00:09:03,000 Speaker 1: that the the human structure was combined with the concrete infrastructure. 153 00:09:03,080 --> 00:09:06,320 Speaker 1: And I think at some point, in order to get 154 00:09:06,360 --> 00:09:11,480 Speaker 1: that concrete rebuilding effort underway on a massive scale, get 155 00:09:11,559 --> 00:09:15,160 Speaker 1: that done and then go back categorically, uh, with or 156 00:09:15,200 --> 00:09:19,400 Speaker 1: without reconciliations, to get some of those programs launched because 157 00:09:19,400 --> 00:09:22,760 Speaker 1: they do make sense. Well, that's important. As we speak 158 00:09:22,800 --> 00:09:25,920 Speaker 1: with the former governor of Pennsylvania, Mark Schweiker, a Republican, 159 00:09:26,000 --> 00:09:29,600 Speaker 1: there are elements in the Human Infrastructure Bill you mentioned 160 00:09:29,720 --> 00:09:32,520 Speaker 1: childcare that you believe would help to get people back 161 00:09:32,520 --> 00:09:37,040 Speaker 1: to work. Well, might say, I don't think there is 162 00:09:37,240 --> 00:09:41,560 Speaker 1: anyone among us who didn't lament uh, the the just 163 00:09:41,679 --> 00:09:43,880 Speaker 1: the large number of women over the last year and 164 00:09:43,880 --> 00:09:47,000 Speaker 1: a half who lost their jobs at greater rates than men. 165 00:09:47,760 --> 00:09:50,920 Speaker 1: Uh and in part because you know, of the whether 166 00:09:51,000 --> 00:09:54,760 Speaker 1: stereotypical or not, the idea that women have a greater 167 00:09:54,800 --> 00:09:57,520 Speaker 1: burden when it comes to caring for children in a family, 168 00:09:57,840 --> 00:09:59,480 Speaker 1: and so they had to leave the workplace. And we 169 00:09:59,559 --> 00:10:02,200 Speaker 1: made we've tremendous gains in the last thirty years on 170 00:10:02,240 --> 00:10:06,319 Speaker 1: that front. So in my mind, and if I had 171 00:10:06,320 --> 00:10:08,440 Speaker 1: to rank order, Joe and I want to get past 172 00:10:08,480 --> 00:10:12,760 Speaker 1: the straight talk test here, you know in my mind, uh, 173 00:10:12,880 --> 00:10:17,160 Speaker 1: you know, pre K education has tremendous academic reward and 174 00:10:17,200 --> 00:10:20,440 Speaker 1: helps bring down costs it later grades in any public 175 00:10:20,480 --> 00:10:23,960 Speaker 1: school system. So in my mind. I'd love to see UH, 176 00:10:24,000 --> 00:10:27,320 Speaker 1: you know, a pilot UH financial version of that launch 177 00:10:27,720 --> 00:10:31,640 Speaker 1: And secondly, would be a broader childcare commitment, but not 178 00:10:31,920 --> 00:10:35,800 Speaker 1: where the federal government creates all of the UH, the 179 00:10:35,800 --> 00:10:39,920 Speaker 1: the programmatic components that must be and stands that must 180 00:10:40,000 --> 00:10:42,800 Speaker 1: be met. I see more of a grant program where 181 00:10:42,800 --> 00:10:45,200 Speaker 1: the states can customize based on what they want to 182 00:10:45,240 --> 00:10:47,920 Speaker 1: do for either of those two programs. Well, this is 183 00:10:47,960 --> 00:10:51,280 Speaker 1: illuminating this. I can hear where you're going here, and 184 00:10:51,320 --> 00:10:54,000 Speaker 1: as a Republican you're open to some of these ideas. 185 00:10:54,000 --> 00:10:55,960 Speaker 1: It sounds to me like you're you're not happy with 186 00:10:56,000 --> 00:10:59,880 Speaker 1: the process in which this through which this is happening, 187 00:11:00,480 --> 00:11:03,360 Speaker 1: or the size of that bill that the dollar sign. 188 00:11:03,679 --> 00:11:06,800 Speaker 1: We only have thirty seconds left here, governor take them 189 00:11:06,840 --> 00:11:10,920 Speaker 1: one at a time, is your point? Sure? So that's right, Joe, 190 00:11:10,920 --> 00:11:13,880 Speaker 1: I would I would say, you know, let's be plain, 191 00:11:14,000 --> 00:11:18,800 Speaker 1: spoken and sequential about this if if necessary. No one, 192 00:11:18,920 --> 00:11:24,720 Speaker 1: even the progressive questioned the economic UH and community virtue 193 00:11:24,960 --> 00:11:28,640 Speaker 1: of a concrete infrastructure bill, whether or not you want 194 00:11:28,640 --> 00:11:31,760 Speaker 1: to jeopardize that whole shooting match and helping Americans get 195 00:11:31,760 --> 00:11:35,280 Speaker 1: back on the highway to economic prosperity, because that all 196 00:11:35,320 --> 00:11:38,000 Speaker 1: art has been shut down. That's what this infrastructure going 197 00:11:38,040 --> 00:11:41,000 Speaker 1: to get that done and go to the human segment, 198 00:11:41,400 --> 00:11:45,160 Speaker 1: uh down. The former governor of Pennsylvania, Mark Schweiker. Many 199 00:11:45,200 --> 00:11:48,319 Speaker 1: thanks for being with us. I'm Joe Matthew. This is Bloomberg. 200 00:11:50,600 --> 00:11:55,599 Speaker 1: This is Bloomberg s No with Joe Matthew on Bloomberg 201 00:11:55,720 --> 00:11:59,880 Speaker 1: Radio Live from Washington. Thank you for joining us as 202 00:12:00,000 --> 00:12:03,520 Speaker 1: you dig deeper into the infrastructure debate and spend some 203 00:12:03,600 --> 00:12:05,960 Speaker 1: time with a Democratic member of Congress who will be 204 00:12:06,000 --> 00:12:08,400 Speaker 1: featured prominently in that debate as a member of the 205 00:12:08,400 --> 00:12:13,960 Speaker 1: House Transportation and Infrastructure Committee, along with four Transportation and 206 00:12:14,040 --> 00:12:17,520 Speaker 1: Infrastructure subcommittees. Could be a heck of a summer for 207 00:12:17,640 --> 00:12:21,079 Speaker 1: John Garamendi of California, Congressman. Welcome back to Bloomberg Radio. 208 00:12:22,000 --> 00:12:25,440 Speaker 1: Delighted to be with you. Looking to start off, would 209 00:12:25,480 --> 00:12:28,880 Speaker 1: you vote for the bipartisan Infrastructure bill as it is 210 00:12:29,120 --> 00:12:33,280 Speaker 1: standing now? Is there enough from what you understand for 211 00:12:33,360 --> 00:12:39,080 Speaker 1: your district? See the correct elements are in it and 212 00:12:39,120 --> 00:12:43,080 Speaker 1: the money is in the range of Okay, do we 213 00:12:43,080 --> 00:12:45,360 Speaker 1: need a little more here, a little more there? Probably? 214 00:12:45,400 --> 00:12:47,440 Speaker 1: So what I like to do is to start at 215 00:12:47,480 --> 00:12:49,600 Speaker 1: the bottom. How much money do we need for a 216 00:12:49,720 --> 00:12:52,559 Speaker 1: rural broadband and urban broadband? How much money we need 217 00:12:52,600 --> 00:12:56,800 Speaker 1: for bridges, sanitation water over the next five years? You 218 00:12:57,240 --> 00:13:00,520 Speaker 1: and well, how much can you also spend easily over 219 00:13:00,559 --> 00:13:02,600 Speaker 1: that period of time. That gives you a number, and 220 00:13:02,600 --> 00:13:04,560 Speaker 1: then you add all those up and you get the 221 00:13:04,600 --> 00:13:07,040 Speaker 1: top line. But it's very very much in the range 222 00:13:07,040 --> 00:13:09,840 Speaker 1: where we've been talking about for some time, particularly when 223 00:13:09,840 --> 00:13:12,839 Speaker 1: you add the new money to the existing programs. So 224 00:13:13,160 --> 00:13:16,440 Speaker 1: the answer, as far as the numbers are concerned, yes, 225 00:13:16,520 --> 00:13:18,800 Speaker 1: I would vote for it. It's been a lot of 226 00:13:18,800 --> 00:13:23,080 Speaker 1: talk about climate change with regard to the reconciliation bill 227 00:13:23,160 --> 00:13:26,959 Speaker 1: with the the overall budget structure here, and I know 228 00:13:27,040 --> 00:13:29,360 Speaker 1: that we've been back and forth with what order they 229 00:13:29,440 --> 00:13:31,680 Speaker 1: might come in and whether one is tied to the other. 230 00:13:32,360 --> 00:13:35,640 Speaker 1: But should that as as a congressman from California, with 231 00:13:35,640 --> 00:13:39,520 Speaker 1: with your own challenges, specific challenges in your state, are 232 00:13:39,559 --> 00:13:44,720 Speaker 1: you looking for more money on climate change through reconciliation? Well, actually, 233 00:13:44,720 --> 00:13:47,160 Speaker 1: there's a great deal of money in the proposal that 234 00:13:47,280 --> 00:13:50,600 Speaker 1: Biden and the Senators worked out. Not exactly sure what 235 00:13:50,679 --> 00:13:53,280 Speaker 1: the language is and how that money would be distributed, 236 00:13:53,559 --> 00:13:56,280 Speaker 1: but you take a look at it. Electric buses, transit, 237 00:13:57,000 --> 00:14:00,959 Speaker 1: e V electric vehicle infrastructure. Those are the really big ones. 238 00:14:01,360 --> 00:14:04,840 Speaker 1: Also you have to have in that and I suspect 239 00:14:04,840 --> 00:14:07,200 Speaker 1: it will be and that is the grid system to 240 00:14:07,240 --> 00:14:10,560 Speaker 1: support all of that. So there is actually the foundation 241 00:14:10,840 --> 00:14:14,840 Speaker 1: for those programs. Now with regard to the way in 242 00:14:14,880 --> 00:14:20,680 Speaker 1: which you generate the electricity, UM, wind, turbans, UH, solar, 243 00:14:20,760 --> 00:14:23,800 Speaker 1: those bills, those programs are still in place, although we 244 00:14:23,840 --> 00:14:28,000 Speaker 1: can certainly use more in that regard. We also need 245 00:14:28,040 --> 00:14:32,640 Speaker 1: to take a very big leap into energy storage systems, 246 00:14:33,040 --> 00:14:35,600 Speaker 1: and there are multitude of energy story systems are all 247 00:14:35,680 --> 00:14:38,120 Speaker 1: kinds of batteries that people are talking about. They do 248 00:14:38,240 --> 00:14:41,280 Speaker 1: have challenges. You've got to find the rare earth minerals 249 00:14:41,320 --> 00:14:44,160 Speaker 1: form and they are toxic, so those have to be 250 00:14:44,200 --> 00:14:46,560 Speaker 1: dealt with. Along the way, which brings us to all 251 00:14:46,640 --> 00:14:51,000 Speaker 1: of this is going to require a domestic production of 252 00:14:51,040 --> 00:14:53,280 Speaker 1: these facilities. We've got to make it in America. We're 253 00:14:53,280 --> 00:14:56,080 Speaker 1: going to have to open our own rare earth minds, 254 00:14:56,120 --> 00:14:58,840 Speaker 1: which we actually have, but most of which start up 255 00:14:58,880 --> 00:15:02,120 Speaker 1: and then shut down when China UH does some other 256 00:15:02,200 --> 00:15:06,880 Speaker 1: aggressive undercutting the crisis and forces the minds in the bankruptcy. 257 00:15:06,920 --> 00:15:12,000 Speaker 1: But nonetheless we can provide domestically many of the materials 258 00:15:12,040 --> 00:15:14,680 Speaker 1: that we need for these energy systems. This is great 259 00:15:14,720 --> 00:15:16,640 Speaker 1: because it gives us a real sense, It gives our 260 00:15:16,640 --> 00:15:19,200 Speaker 1: listeners a real sense of the conversations that are had 261 00:15:20,200 --> 00:15:23,720 Speaker 1: in the priorities that different lawmakers are bringing from their 262 00:15:23,720 --> 00:15:29,160 Speaker 1: respective states, from their districts. And everyone has a different idea. 263 00:15:29,240 --> 00:15:32,560 Speaker 1: Of course, they they often overlap, but we're talking specifically 264 00:15:32,560 --> 00:15:35,720 Speaker 1: about what your needs are. Backing off to the broad 265 00:15:35,800 --> 00:15:38,120 Speaker 1: debate now, and of course, as I mentioned, you're gonna 266 00:15:38,160 --> 00:15:40,800 Speaker 1: be talking about this a lot in the House Transportation 267 00:15:41,080 --> 00:15:44,680 Speaker 1: and Infrastructure Committee. A number of your colleagues were apparently 268 00:15:44,680 --> 00:15:47,920 Speaker 1: on their heels over the weekend concerned about the tie, 269 00:15:48,080 --> 00:15:52,280 Speaker 1: the sort of coupling UH with this reconciliation bill. Are 270 00:15:52,280 --> 00:15:55,680 Speaker 1: you worried that the progressive wing of the Democratic Party 271 00:15:55,680 --> 00:16:01,160 Speaker 1: will not be on board? Now, I'm gonna put it 272 00:16:01,200 --> 00:16:04,080 Speaker 1: this way. There's a term that I heard out of 273 00:16:04,120 --> 00:16:07,920 Speaker 1: the California farm workers forty years ago. It's called safe way. 274 00:16:08,280 --> 00:16:11,720 Speaker 1: Yes we can. We're gonna get this done. There'll be compromises, 275 00:16:11,760 --> 00:16:13,680 Speaker 1: there will be some things that I'll be less than 276 00:16:13,720 --> 00:16:16,800 Speaker 1: happy with, will be just plain angry about a few things, 277 00:16:17,400 --> 00:16:20,360 Speaker 1: But we've got to we've got to move this thing forward. 278 00:16:20,400 --> 00:16:23,360 Speaker 1: I can't get everything I want. Often there's two words 279 00:16:23,440 --> 00:16:26,160 Speaker 1: my wife says, Patty says this all the time. John, 280 00:16:26,640 --> 00:16:30,120 Speaker 1: there's need to and nice to. What do you need 281 00:16:30,200 --> 00:16:32,360 Speaker 1: to have and what would be nice to have? So 282 00:16:32,440 --> 00:16:34,480 Speaker 1: we've got to go through this thing. But you talked 283 00:16:34,480 --> 00:16:36,640 Speaker 1: about what we have to have. There's one of this 284 00:16:36,800 --> 00:16:39,840 Speaker 1: and were absolutely delighted. The sentence was to do this. 285 00:16:39,920 --> 00:16:42,000 Speaker 1: We couldn't get it in the house, and that is 286 00:16:42,040 --> 00:16:45,600 Speaker 1: a western water storage. We got one serious drought going 287 00:16:45,600 --> 00:16:48,680 Speaker 1: in the West and water storage not on the rivers. 288 00:16:48,800 --> 00:16:51,640 Speaker 1: But offer of the water storage and the awkwific programs 289 00:16:51,760 --> 00:16:56,400 Speaker 1: critically important with regard to the reconciliation bill. That's what 290 00:16:56,440 --> 00:17:01,200 Speaker 1: we call soft infrastructure, critically necessary. At some point the 291 00:17:01,280 --> 00:17:05,240 Speaker 1: members of Congress, liberal, conservative, progressive, whatever, are going to realize, 292 00:17:05,240 --> 00:17:07,520 Speaker 1: oh my god, where the workers, Where the trained workers. 293 00:17:07,520 --> 00:17:10,400 Speaker 1: We've got to have a job training program. Yeah, you're right, 294 00:17:10,440 --> 00:17:13,320 Speaker 1: we do. And that's part of the soft infrastructure that 295 00:17:13,400 --> 00:17:17,359 Speaker 1: Biden talked about five months ago. So those kinds of 296 00:17:17,400 --> 00:17:21,360 Speaker 1: things are there. Also, Biden talked about research. You've got 297 00:17:21,359 --> 00:17:24,680 Speaker 1: to be competitive with China, got every research the Senate 298 00:17:24,760 --> 00:17:26,960 Speaker 1: did something brilliant, which for those of us in the 299 00:17:27,000 --> 00:17:29,800 Speaker 1: health I think is rather unusual. But nonetheless, they did 300 00:17:29,800 --> 00:17:33,280 Speaker 1: a thing. They passed a quarter of a trillion dollar 301 00:17:35,080 --> 00:17:39,480 Speaker 1: competibill to compete with China. Why not go back and 302 00:17:39,880 --> 00:17:42,679 Speaker 1: debate these I hate to interrupt you, of congressmen, we 303 00:17:42,720 --> 00:17:44,919 Speaker 1: only have a moment left. Why not go back and 304 00:17:44,960 --> 00:17:48,680 Speaker 1: debate these items childcare, expansion of medicare one by one 305 00:17:48,960 --> 00:17:52,359 Speaker 1: instead of putting it into this massive reconciliation plan because 306 00:17:52,359 --> 00:17:56,240 Speaker 1: it won't pass, it's going to have to be reconciliation times. 307 00:17:56,320 --> 00:17:58,720 Speaker 1: You've gotta you gotta do it in reconciliation. It can 308 00:17:58,800 --> 00:18:02,560 Speaker 1: be done the other I'm sorry, we're out of time. Congressman. 309 00:18:02,600 --> 00:18:04,080 Speaker 1: I hate to do that to you, but that's a 310 00:18:04,160 --> 00:18:08,280 Speaker 1: reality check. That's a reality check from Congressman John Garamendi, 311 00:18:08,320 --> 00:18:11,200 Speaker 1: a member of the House Transportation and Infrastructure Committee. That's 312 00:18:11,200 --> 00:18:13,960 Speaker 1: the Democratic view. We've been hearing a lot about how 313 00:18:14,000 --> 00:18:17,680 Speaker 1: the sausage is made recently from certainly the White House 314 00:18:17,680 --> 00:18:21,000 Speaker 1: Press Secretary, even referring to that with all the back 315 00:18:21,119 --> 00:18:24,600 Speaker 1: room drama surrounding infrastructure, that was the story today. Every 316 00:18:24,640 --> 00:18:28,240 Speaker 1: reporter in the briefing room asking about decoupling. Did the 317 00:18:28,280 --> 00:18:30,440 Speaker 1: President mean it when he said it? What does this 318 00:18:30,600 --> 00:18:35,360 Speaker 1: mean now for infrastructure? What about reconciliation? After the President 319 00:18:36,200 --> 00:18:40,440 Speaker 1: issued his clarifying statements over the weekend, Press Secretary Jen 320 00:18:40,480 --> 00:18:44,439 Speaker 1: Psaki interested today in making this about process. I know 321 00:18:44,520 --> 00:18:47,159 Speaker 1: that we're quite focused sometimes on process, and here I 322 00:18:47,240 --> 00:18:50,240 Speaker 1: understand that the process of a bill becoming a law 323 00:18:50,440 --> 00:18:54,399 Speaker 1: is important. But the President intends to sign both pieces 324 00:18:54,400 --> 00:18:59,960 Speaker 1: of legislation into law. Might need to rewrite Schoolhouse Rock here, 325 00:19:01,040 --> 00:19:04,320 Speaker 1: But what about Nancy Pelosi? This was the Speaker of 326 00:19:04,359 --> 00:19:08,280 Speaker 1: the House. As you heard here on Bloomberg Radio on Thursday. 327 00:19:08,440 --> 00:19:13,399 Speaker 1: There ain't going to be on infrastructure bill unless we 328 00:19:13,560 --> 00:19:18,760 Speaker 1: have the reconciliation bill passed by the United States Senate. 329 00:19:20,160 --> 00:19:24,080 Speaker 1: We're joined now by the panel Bloomberg Politics contributor Jeanie 330 00:19:24,160 --> 00:19:26,880 Speaker 1: she and Zano, and today we're also joined by John 331 00:19:26,920 --> 00:19:31,359 Speaker 1: Siddeldy's geopolitical strategist at Trilogy Advisors and diplomacy consultant for 332 00:19:31,400 --> 00:19:34,119 Speaker 1: the State Department. It is great to have both of 333 00:19:34,160 --> 00:19:38,520 Speaker 1: you with us, and John, welcome to the mix. Thank 334 00:19:38,520 --> 00:19:42,879 Speaker 1: you asking you about this whole process. Here is that 335 00:19:42,920 --> 00:19:45,400 Speaker 1: good strategy for the White House make it about process. 336 00:19:45,400 --> 00:19:47,520 Speaker 1: So you guys are focused on all the wrong stuff. 337 00:19:47,520 --> 00:19:50,040 Speaker 1: You're we're doing great things for the American people. Just 338 00:19:50,119 --> 00:19:54,200 Speaker 1: check back in a couple of minutes. Well, first of all, 339 00:19:54,240 --> 00:19:57,199 Speaker 1: I think what we have here now is a colossal 340 00:19:57,320 --> 00:20:01,280 Speaker 1: crisis of mistrust in Washington, d See. I think the 341 00:20:01,320 --> 00:20:04,120 Speaker 1: Republicans that cut the deal with the President last week 342 00:20:04,160 --> 00:20:07,480 Speaker 1: feel that they were betrayed. I think the larger Republican 343 00:20:07,520 --> 00:20:10,000 Speaker 1: caucus feels that it was a waste of time meeting 344 00:20:10,000 --> 00:20:12,600 Speaker 1: with the president if there's going to be this demand 345 00:20:13,040 --> 00:20:15,440 Speaker 1: that there's going to be two pieces of legislation, because 346 00:20:15,480 --> 00:20:18,560 Speaker 1: all that means for the Republicans is that the President 347 00:20:18,600 --> 00:20:21,679 Speaker 1: gets there buy in on what everyone agrees is basic 348 00:20:21,760 --> 00:20:25,119 Speaker 1: infrastructure necessity for the United States, and then they can 349 00:20:25,160 --> 00:20:28,080 Speaker 1: go ahead and pass a multi trillion dollar families Plan 350 00:20:28,160 --> 00:20:32,920 Speaker 1: in a series of other non physical infrastructure measures and 351 00:20:32,960 --> 00:20:35,680 Speaker 1: get everything they wanted without ever having to make to 352 00:20:35,920 --> 00:20:39,399 Speaker 1: make a serious concession to the Republicans. So that's the 353 00:20:39,440 --> 00:20:42,840 Speaker 1: trust problem in Washington. But I think also nationally, Joe, 354 00:20:43,240 --> 00:20:46,280 Speaker 1: I think the Biden administration is facing a huge risk 355 00:20:46,280 --> 00:20:48,760 Speaker 1: here because I think there really hasn't been a debate 356 00:20:48,840 --> 00:20:53,199 Speaker 1: about what constitutes infrastructure, and the White House and the 357 00:20:53,240 --> 00:20:56,440 Speaker 1: Senate and House Democrats seem to have expanded the definition 358 00:20:56,480 --> 00:20:59,560 Speaker 1: of infrastructure to things that no one really considered to 359 00:20:59,560 --> 00:21:05,040 Speaker 1: be infra structure before, like elder care and workforce development 360 00:21:05,240 --> 00:21:07,960 Speaker 1: and the like. And so I think most Americans really 361 00:21:08,000 --> 00:21:11,160 Speaker 1: don't see I with Democrats on this debate right now. 362 00:21:11,520 --> 00:21:14,280 Speaker 1: It's going to be a very interesting public engagement by 363 00:21:14,280 --> 00:21:18,840 Speaker 1: Democrats and Republicans of the American people in the weeks ahead. Genie, 364 00:21:18,840 --> 00:21:21,080 Speaker 1: she and Zano, Let's talk about trust for a minute. 365 00:21:21,200 --> 00:21:25,239 Speaker 1: Happy Monday. By the way, President Biden, Nancy Pelosi, how 366 00:21:25,320 --> 00:21:28,560 Speaker 1: much trust will there be after everything that happened over 367 00:21:28,560 --> 00:21:30,919 Speaker 1: the weekend. It's pretty hard to find any sunlight inside 368 00:21:30,920 --> 00:21:34,280 Speaker 1: those comments from Nancy Pelosi. It's good to talk to you, Joe. 369 00:21:34,359 --> 00:21:36,800 Speaker 1: You know, as you and and everybody in Washington is 370 00:21:36,920 --> 00:21:40,640 Speaker 1: using these this word decoupling, it is fascinating to me 371 00:21:40,720 --> 00:21:43,359 Speaker 1: because you know, to my mind, this was really an 372 00:21:43,480 --> 00:21:46,920 Speaker 1: unforced error made by Joe Biden when he got out 373 00:21:46,920 --> 00:21:49,320 Speaker 1: ahead of himself, you know a little bit. It reminded 374 00:21:49,359 --> 00:21:52,000 Speaker 1: me of George W. Bush with mission accomplished. You never 375 00:21:52,160 --> 00:21:55,600 Speaker 1: claim mission accomplished when you're not done. And I know 376 00:21:55,880 --> 00:21:58,840 Speaker 1: he wants to say he did something we all thought 377 00:21:58,840 --> 00:22:02,480 Speaker 1: he couldn't do. I among is he got a bipartisan agreement, 378 00:22:02,720 --> 00:22:05,119 Speaker 1: But the fact is it was an agreement. It is 379 00:22:05,240 --> 00:22:08,480 Speaker 1: fraught with problems. You've got to push the ball through 380 00:22:08,560 --> 00:22:11,120 Speaker 1: the end zone or whatever that sport analogy has. Don't 381 00:22:11,119 --> 00:22:13,359 Speaker 1: ask me, but you've got to get it through before 382 00:22:13,400 --> 00:22:15,840 Speaker 1: you celebrate it. And I think that was the error 383 00:22:15,920 --> 00:22:18,800 Speaker 1: he made. They tried to walk it back this weekend. 384 00:22:19,280 --> 00:22:24,320 Speaker 1: I thought Romney, Rob Portman, other Republicans accepted that, you know, 385 00:22:24,440 --> 00:22:28,280 Speaker 1: decoupling if you will, um, you know, sort of elegantly 386 00:22:28,359 --> 00:22:31,000 Speaker 1: over the weekend. But we've got to see what happens 387 00:22:31,040 --> 00:22:33,840 Speaker 1: as we go forward. But I do think this was 388 00:22:33,960 --> 00:22:36,520 Speaker 1: Joe Biden getting out ahead of himself, which on the 389 00:22:36,520 --> 00:22:39,400 Speaker 1: one hand, Joe Biden likes to talk, so that's not surprising. 390 00:22:39,400 --> 00:22:42,080 Speaker 1: On the other hand, he is a master legislator. So 391 00:22:42,119 --> 00:22:44,680 Speaker 1: the fact that he allowed himself to get out ahead 392 00:22:44,720 --> 00:22:48,320 Speaker 1: with his you know, comments on the tarmac late last week, 393 00:22:48,359 --> 00:22:51,280 Speaker 1: as you talked about them, was really quite an error. 394 00:22:51,359 --> 00:22:53,280 Speaker 1: And they knew they made it, and they've tried to 395 00:22:53,280 --> 00:22:55,720 Speaker 1: force it back now, not making a lot of friends here. 396 00:22:55,800 --> 00:22:58,200 Speaker 1: The other big item that was in the air in 397 00:22:58,240 --> 00:23:00,200 Speaker 1: the White House briefing room today, something I want to 398 00:23:00,240 --> 00:23:03,719 Speaker 1: ask you both about, and that was the administration's defense 399 00:23:03,760 --> 00:23:07,560 Speaker 1: of air strikes air strikes on Iran backed malicious in Iraq, 400 00:23:07,720 --> 00:23:11,360 Speaker 1: in Syria. The Secretary of State's Anthony Blncoln in Rome 401 00:23:11,440 --> 00:23:14,920 Speaker 1: today says it sends a clear and unambiguous, deterrent message, 402 00:23:15,720 --> 00:23:18,240 Speaker 1: saying that I hope very much it is received by 403 00:23:18,280 --> 00:23:22,080 Speaker 1: those who are intended to receive it. John, You've spent 404 00:23:22,119 --> 00:23:24,920 Speaker 1: a lot of time in geopolitics. What is the White 405 00:23:24,920 --> 00:23:27,320 Speaker 1: House getting into here? Is this the beginning of something? 406 00:23:28,960 --> 00:23:30,800 Speaker 1: I don't think it's the beginning of anything, Joe. I 407 00:23:30,840 --> 00:23:34,960 Speaker 1: would think, if anything, it's a continuation of sound US 408 00:23:35,040 --> 00:23:39,360 Speaker 1: policy of forward defense, especially because there have been forty 409 00:23:39,600 --> 00:23:44,960 Speaker 1: four zero attacks by Iranian proxies in Iraq against American 410 00:23:45,000 --> 00:23:49,119 Speaker 1: forces and against American assets in this year alone. You know, 411 00:23:49,200 --> 00:23:54,159 Speaker 1: we still have troops in Iraq battling against the Islamic State, 412 00:23:54,560 --> 00:23:57,080 Speaker 1: and so the Iranians feel that they can attack the 413 00:23:57,160 --> 00:24:00,520 Speaker 1: US with impunity, and one might sit at these against 414 00:24:00,520 --> 00:24:04,000 Speaker 1: these Iranian proxies are overdue and hopefully will send a 415 00:24:04,080 --> 00:24:07,400 Speaker 1: very strong message back to the Iranians that their attacks 416 00:24:07,400 --> 00:24:11,240 Speaker 1: on US forces in US assets will be met with force, 417 00:24:11,760 --> 00:24:14,400 Speaker 1: and also to send a very strong signal to Tehran 418 00:24:14,920 --> 00:24:17,120 Speaker 1: so that they don't have the misimpression that they're dealing 419 00:24:17,160 --> 00:24:20,040 Speaker 1: with a weak administration in the context of the j 420 00:24:20,160 --> 00:24:23,679 Speaker 1: c p o A Nuclear Development and Nuclear Weapons Agreement. Well, 421 00:24:23,720 --> 00:24:25,200 Speaker 1: that's where I was going to go with you, Genie. 422 00:24:25,280 --> 00:24:28,960 Speaker 1: Does this make it more difficult to have the US 423 00:24:29,000 --> 00:24:33,200 Speaker 1: back in the Iran nuclear deal? I don't think so. Actually, 424 00:24:33,280 --> 00:24:36,600 Speaker 1: I think that the Biden administration. I think Anthony Blinkenhock 425 00:24:36,640 --> 00:24:39,320 Speaker 1: tried to be very cautious in terms of their response, 426 00:24:39,320 --> 00:24:41,760 Speaker 1: and I think we saw that, although he's getting criticism 427 00:24:41,840 --> 00:24:43,840 Speaker 1: from the progressive left on that, so he's got to 428 00:24:43,880 --> 00:24:49,919 Speaker 1: be careful there as well. Markets headlines and breaking news 429 00:24:50,000 --> 00:24:52,680 Speaker 1: twenty four hours a day at Bloomberg dot Com, the 430 00:24:52,680 --> 00:24:56,200 Speaker 1: Bloomberg Business app, and at Bloomberg Quick Tape. He's a 431 00:24:56,240 --> 00:25:05,760 Speaker 1: Bloomberg Business lash from Bloomberg World Handquarters. I'm Charlie Pelt. 432 00:25:05,920 --> 00:25:09,520 Speaker 1: Lots of after the Ball headlines involving bank stocks. Wells 433 00:25:09,600 --> 00:25:13,280 Speaker 1: Fargo plans to increase its third quarter dividend to twenty 434 00:25:13,320 --> 00:25:16,400 Speaker 1: cents a share from ten cents, subject to board approval. 435 00:25:16,440 --> 00:25:20,720 Speaker 1: In Julians also planning about eighteen billion in buy backs. 436 00:25:20,760 --> 00:25:24,480 Speaker 1: Morgan Stanley doubling its quarterly dividend and announced as much 437 00:25:24,520 --> 00:25:27,240 Speaker 1: as twelve billion in buy backs. It was the first 438 00:25:27,280 --> 00:25:29,960 Speaker 1: of the biggest American banks to respond to their success 439 00:25:30,000 --> 00:25:33,720 Speaker 1: in clearing this year's stress tests. Goldman Sachs boosting its 440 00:25:33,760 --> 00:25:37,080 Speaker 1: quarterly pay out six to two dollars a share, and 441 00:25:37,200 --> 00:25:40,399 Speaker 1: JP Morgan Chases it's raising its dividend to a dollar 442 00:25:40,640 --> 00:25:44,440 Speaker 1: from ninety cents. Cathy Woods Arc Investment Management has foiled 443 00:25:44,480 --> 00:25:48,359 Speaker 1: to list a bitcoin exchange traded product, the latest company 444 00:25:48,400 --> 00:25:51,880 Speaker 1: to throw its hat into the crypto fund rain the Dow, 445 00:25:52,000 --> 00:25:54,919 Speaker 1: the SMP, Nestack mixed a their record zo for the 446 00:25:55,080 --> 00:25:58,720 Speaker 1: SMP and NEZDAK also the NASDAC one d index. The 447 00:25:58,800 --> 00:26:01,399 Speaker 1: Dow dropped a hundred and fifty points, down four tenths 448 00:26:01,400 --> 00:26:04,200 Speaker 1: of one percent, SMP up nine, a gain of two 449 00:26:04,200 --> 00:26:07,240 Speaker 1: tenths of one percent now as Stack up one forty 450 00:26:07,520 --> 00:26:10,480 Speaker 1: one percent, now STACK one index up one point to 451 00:26:10,720 --> 00:26:14,080 Speaker 1: five ten ye year old one point four seven percent. 452 00:26:14,200 --> 00:26:18,120 Speaker 1: Gold at seventeen seventy eight ounce West Texas Enemedia crewed 453 00:26:18,160 --> 00:26:21,080 Speaker 1: down one and a half percent seventy ninety one a 454 00:26:21,160 --> 00:26:25,679 Speaker 1: barrel recapping stocks at a record Facebook as one dismissal 455 00:26:25,760 --> 00:26:29,920 Speaker 1: of the state's monopoly lawsuits. I'm Charlie Pellock. That's a 456 00:26:29,920 --> 00:26:36,680 Speaker 1: Bloomberg business flash. This is Bloomberg. So long with Joe 457 00:26:36,720 --> 00:26:41,960 Speaker 1: Matthew on Bloomberg Radio. Thanks for being with us, Son 458 00:26:42,040 --> 00:26:46,040 Speaker 1: Bloomberg Radio. Welcome to sound On. I'nt Joe Matthew in Washington. 459 00:26:46,119 --> 00:26:49,360 Speaker 1: How many people were in your office today? Were you 460 00:26:49,440 --> 00:26:52,560 Speaker 1: in the office today or are you still working from home? 461 00:26:53,520 --> 00:26:56,359 Speaker 1: The banking giant U b S is yes to both. 462 00:26:57,240 --> 00:27:00,119 Speaker 1: As I read from the Bloomberg terminal, you'd be as 463 00:27:00,200 --> 00:27:02,359 Speaker 1: group will permanently allow as many as two thirds of 464 00:27:02,400 --> 00:27:05,119 Speaker 1: its employees to mix working at home and the office, right, 465 00:27:05,200 --> 00:27:07,879 Speaker 1: the hybrid model, and that's at odds with some of 466 00:27:07,880 --> 00:27:11,359 Speaker 1: its competitors, which appears to be the point. We're joined 467 00:27:11,359 --> 00:27:15,000 Speaker 1: now by Bloomberg Political News director Jody Schneider, who helped 468 00:27:15,000 --> 00:27:18,639 Speaker 1: a spearhead our COVID coverage throughout the pandemic here at Bloomberg. 469 00:27:19,040 --> 00:27:21,080 Speaker 1: A bit of an expert on this, Jody, It's great 470 00:27:21,080 --> 00:27:23,320 Speaker 1: to have you back. Reaction to it. This is a 471 00:27:23,359 --> 00:27:27,280 Speaker 1: new wrinkle, a major banking group going hybrid. Yeah, it's 472 00:27:27,280 --> 00:27:30,280 Speaker 1: really interesting because we've sort of seen people be across 473 00:27:30,359 --> 00:27:33,439 Speaker 1: the board on this. Goldman Sachs and some of the 474 00:27:33,480 --> 00:27:37,440 Speaker 1: other big financial firms, particularly those uh that are here 475 00:27:37,440 --> 00:27:41,240 Speaker 1: in New York have gone ahead and said we expect 476 00:27:41,280 --> 00:27:44,400 Speaker 1: you back. Um. You know, it may be we may 477 00:27:44,400 --> 00:27:47,200 Speaker 1: give you a little more time, we may give you 478 00:27:47,359 --> 00:27:50,800 Speaker 1: some flexibility, but for the most part, we want you 479 00:27:50,960 --> 00:27:54,280 Speaker 1: in the office. Uh. So this is interesting for a 480 00:27:54,359 --> 00:27:58,160 Speaker 1: banking company to say we're going to have this hybrid model. 481 00:27:58,359 --> 00:28:02,560 Speaker 1: We've been hearing that more from technology companies so far, 482 00:28:02,720 --> 00:28:06,280 Speaker 1: like Apple and Google and others who have you know, 483 00:28:06,680 --> 00:28:11,280 Speaker 1: really tried to promote that flexibility, partly because they fear 484 00:28:11,280 --> 00:28:14,080 Speaker 1: of losing some workers who maybe will say, hey, I've 485 00:28:14,400 --> 00:28:17,120 Speaker 1: enjoyed working at home. Uh and it may be hard 486 00:28:17,160 --> 00:28:19,359 Speaker 1: to fill those kinds of positions. But this is the 487 00:28:19,400 --> 00:28:22,960 Speaker 1: first big bank to say we're staying hybrid. But you 488 00:28:23,040 --> 00:28:25,360 Speaker 1: just put your finger on it, right. This is this 489 00:28:25,440 --> 00:28:29,920 Speaker 1: is seeking a recruitment edge. We've got a worker shortage. 490 00:28:30,000 --> 00:28:33,960 Speaker 1: Some people are just not comfortable coming back. Ubs sees 491 00:28:34,040 --> 00:28:36,600 Speaker 1: this as a way to attract more talent right, right, 492 00:28:36,680 --> 00:28:38,840 Speaker 1: and you know the proof is in the pudding with 493 00:28:38,920 --> 00:28:41,720 Speaker 1: some honey things, right, Hybrid is going to be hard. 494 00:28:41,720 --> 00:28:45,240 Speaker 1: There's lots of questions. What does hybrid mean? What if 495 00:28:45,280 --> 00:28:48,920 Speaker 1: someone doesn't really want to come in? Sometimes doesn't mean 496 00:28:49,200 --> 00:28:51,960 Speaker 1: some people never come in? How do you get teams 497 00:28:51,960 --> 00:28:54,600 Speaker 1: to work together? How do you do onboarding? That's been 498 00:28:54,640 --> 00:28:57,600 Speaker 1: a big point with some of the companies like Goldman 499 00:28:57,640 --> 00:28:59,720 Speaker 1: who have said we want people back. They say, you 500 00:28:59,800 --> 00:29:03,840 Speaker 1: need that corporate culture. Uh, you know explained to you, 501 00:29:03,840 --> 00:29:05,880 Speaker 1: you need to see it. Also, how do you meet 502 00:29:05,920 --> 00:29:08,920 Speaker 1: with clients? Where do you meet with clients? Uh? Do 503 00:29:09,000 --> 00:29:12,120 Speaker 1: you get paid less if you're in a lower tax, 504 00:29:12,280 --> 00:29:15,720 Speaker 1: lower cost city. Should you get a New York salary 505 00:29:15,840 --> 00:29:19,320 Speaker 1: if you're in Nebraska? Uh? Even if you're doing the 506 00:29:19,360 --> 00:29:22,200 Speaker 1: same role. So there's lots and lots of questions. And 507 00:29:22,480 --> 00:29:25,720 Speaker 1: one of the things we're finding overall is that returning 508 00:29:25,720 --> 00:29:29,160 Speaker 1: to the office is proving as complicated as sending everybody 509 00:29:29,200 --> 00:29:33,680 Speaker 1: home us that this road to recovery is bumpy and complicated. 510 00:29:33,960 --> 00:29:36,640 Speaker 1: But then returning to the office and and figuring out 511 00:29:37,200 --> 00:29:40,400 Speaker 1: COVID recovery. Yeah, and Jody, this story comes against the 512 00:29:40,440 --> 00:29:43,280 Speaker 1: backdrop of some tough headlines today that the news has 513 00:29:43,320 --> 00:29:47,160 Speaker 1: been very inconsistent when it comes to the reopening, the recovery. 514 00:29:47,240 --> 00:29:51,920 Speaker 1: We're seeing some some concerning numbers of the delta variant 515 00:29:51,960 --> 00:29:56,320 Speaker 1: in California, a real surge in cases. Hong Kong, meanwhile, 516 00:29:56,400 --> 00:29:59,920 Speaker 1: says it's going to shut down flights from London when 517 00:30:00,120 --> 00:30:03,240 Speaker 1: restrictions begin to lift there. The world is not recovering 518 00:30:03,280 --> 00:30:05,800 Speaker 1: at an even pace. And I wonder with what you 519 00:30:05,840 --> 00:30:07,960 Speaker 1: know about this and what you've reported when you see 520 00:30:08,000 --> 00:30:10,240 Speaker 1: concerns like this coming out of California, a lot of 521 00:30:10,240 --> 00:30:14,960 Speaker 1: concerns about the new variant, whether the reopening could be 522 00:30:15,000 --> 00:30:18,040 Speaker 1: in jeopardy later this year, Well, a lot of it has. 523 00:30:18,200 --> 00:30:21,760 Speaker 1: It's it's two things, right, it's UM these cases and 524 00:30:22,080 --> 00:30:24,760 Speaker 1: how many cases there are, and the delta variant, of course, 525 00:30:24,840 --> 00:30:27,880 Speaker 1: is what is UM causing the surge we're seeing California now, 526 00:30:27,880 --> 00:30:30,640 Speaker 1: We're we've seen it Missouri in the US. But it's 527 00:30:30,640 --> 00:30:34,800 Speaker 1: also vaccination rates. The US is doing quite well overall 528 00:30:34,960 --> 00:30:37,920 Speaker 1: because of you know, sixty six percent of the population 529 00:30:38,040 --> 00:30:41,760 Speaker 1: now has had at least one dose of the vaccine, 530 00:30:41,760 --> 00:30:44,000 Speaker 1: which is pretty high. It's not as high as the 531 00:30:44,000 --> 00:30:48,640 Speaker 1: Biden administration had set their goal of se by this 532 00:30:48,720 --> 00:30:52,520 Speaker 1: weekend by July four, but it's still very good, especially 533 00:30:52,520 --> 00:30:57,280 Speaker 1: on the world stage. So while that delta variant is concerning, 534 00:30:57,600 --> 00:31:01,640 Speaker 1: you're still seeing many fewer cases hospital zations and deaths 535 00:31:01,720 --> 00:31:04,240 Speaker 1: UH due to the delta variant than you are saying. 536 00:31:04,280 --> 00:31:08,920 Speaker 1: The UK UK just reported today twenty three thousand new cases, 537 00:31:09,280 --> 00:31:12,280 Speaker 1: the most since January, even though their their death rate 538 00:31:12,320 --> 00:31:15,440 Speaker 1: has remained fairly low. But a lot of that is 539 00:31:15,480 --> 00:31:18,480 Speaker 1: also because their vaccination rate is not as sized in 540 00:31:18,520 --> 00:31:20,960 Speaker 1: the US. Then you look at India, where this delta 541 00:31:21,080 --> 00:31:24,640 Speaker 1: variant first started with a low vaccination rate and pretty 542 00:31:24,720 --> 00:31:28,200 Speaker 1: much isolated from other countries, and of course the situation 543 00:31:28,240 --> 00:31:31,880 Speaker 1: there is much more dire. Jody Schneider is political news 544 00:31:31,920 --> 00:31:34,320 Speaker 1: director at Bloomberg. It's great to have you back, Jodie, 545 00:31:34,360 --> 00:31:36,800 Speaker 1: and thank you for bringing us up to eight up 546 00:31:36,800 --> 00:31:38,720 Speaker 1: to date on all of this. I want to assemble 547 00:31:38,800 --> 00:31:41,080 Speaker 1: the panel once again so we can talk this out 548 00:31:41,120 --> 00:31:45,080 Speaker 1: with Blueberg Politics contributor Jennie she and Zano and John 549 00:31:45,120 --> 00:31:49,360 Speaker 1: Sidalite's geopolitical strategist at Trilogy Advisor's diplomacy consultant for the 550 00:31:49,400 --> 00:31:53,400 Speaker 1: State Department, Genie. We've talked about the reopening, the concerns 551 00:31:53,400 --> 00:31:57,520 Speaker 1: about this. The White House missing its self declared goal 552 00:31:58,240 --> 00:32:01,400 Speaker 1: for vaccinations is going to be a big party the 553 00:32:01,400 --> 00:32:04,040 Speaker 1: White House in about a week, the fourth of July 554 00:32:04,320 --> 00:32:07,160 Speaker 1: is coming up. Is the timing on that a little 555 00:32:07,160 --> 00:32:10,600 Speaker 1: bit off or the doing the right thing to show 556 00:32:10,640 --> 00:32:13,800 Speaker 1: that this is possible for people who are vaccinated? You know, 557 00:32:14,040 --> 00:32:17,400 Speaker 1: I think you can't begrudge the Biden administration how well 558 00:32:17,440 --> 00:32:20,240 Speaker 1: they have done in handling the pandemic in a very 559 00:32:20,280 --> 00:32:22,560 Speaker 1: short period of time. And yes they're gonna miss as 560 00:32:22,600 --> 00:32:25,480 Speaker 1: they have acknowledged this goal the President set forth. I 561 00:32:25,480 --> 00:32:28,120 Speaker 1: think the first one, by my estimation, they're missing, but 562 00:32:28,200 --> 00:32:31,000 Speaker 1: they're going to get to it soon after. So I 563 00:32:31,040 --> 00:32:33,600 Speaker 1: think they are trying to put a positive spin even 564 00:32:33,640 --> 00:32:35,840 Speaker 1: though they're missing this deadline. I don't think it's a 565 00:32:35,840 --> 00:32:37,920 Speaker 1: big deal. I think they get high numbers. And I 566 00:32:37,960 --> 00:32:40,120 Speaker 1: think what you and Jody were just talking about, as 567 00:32:40,200 --> 00:32:43,880 Speaker 1: these banks and other financial institutions and other institutions come 568 00:32:43,880 --> 00:32:47,080 Speaker 1: out is just fascinating. One big issue I see with 569 00:32:47,200 --> 00:32:51,280 Speaker 1: young people is concerns about socialization. If if you are 570 00:32:51,280 --> 00:32:54,800 Speaker 1: in a hybrid environment starting a job, can you truly 571 00:32:54,920 --> 00:32:57,280 Speaker 1: be socialized? So so much of what you and Jody 572 00:32:57,360 --> 00:33:00,600 Speaker 1: just talked about is I think are things. As Jody 573 00:33:00,600 --> 00:33:04,160 Speaker 1: accurately said, it's as hard, if not harder, to bring 574 00:33:04,240 --> 00:33:07,440 Speaker 1: people back than it was to get them out. So 575 00:33:07,560 --> 00:33:10,520 Speaker 1: it's just fascinating to see how institutions are handling this. 576 00:33:10,880 --> 00:33:13,080 Speaker 1: The fourth of July party came up today in the 577 00:33:13,080 --> 00:33:17,080 Speaker 1: White House press briefing, reporter asked, not unlike I just did, 578 00:33:18,080 --> 00:33:21,560 Speaker 1: is this a little early? Here's Press Secretary Jensaki. We 579 00:33:21,720 --> 00:33:24,320 Speaker 1: of course will continue to evaluate any steps that need 580 00:33:24,360 --> 00:33:28,320 Speaker 1: to be taken to protect the public, protecting the American people, 581 00:33:28,920 --> 00:33:31,920 Speaker 1: but we have made a significant progress um and we 582 00:33:32,000 --> 00:33:34,480 Speaker 1: are confident in our plans moving forward for July four, 583 00:33:34,640 --> 00:33:37,400 Speaker 1: John said, Lady's there are concerns about people gathering around 584 00:33:37,440 --> 00:33:39,240 Speaker 1: the country. You can you can step away from the 585 00:33:39,240 --> 00:33:42,400 Speaker 1: White House for a second, but also concerns about the reopening. 586 00:33:42,480 --> 00:33:46,160 Speaker 1: When we walk into fall, cooler weather arrives, this whole 587 00:33:46,160 --> 00:33:50,440 Speaker 1: infrastructure debate could be sidelined by a very different conversation. 588 00:33:50,600 --> 00:33:54,880 Speaker 1: How concerned are you, Well, it could be sidelined, Joe, 589 00:33:55,040 --> 00:33:57,200 Speaker 1: and it may not be. I mean, I think the 590 00:33:57,240 --> 00:34:01,360 Speaker 1: Biden administration has set some very ambitious goals and laying 591 00:34:01,360 --> 00:34:04,080 Speaker 1: out a top down agenda. But I think in many 592 00:34:04,080 --> 00:34:07,800 Speaker 1: ways the American people and small businesses are ahead of 593 00:34:07,840 --> 00:34:10,560 Speaker 1: the government on this, and I think that we have 594 00:34:10,680 --> 00:34:13,560 Speaker 1: to be mindful that there are never perfect solutions, even 595 00:34:13,560 --> 00:34:17,319 Speaker 1: to a crisis like the COVID pandemic and even worse 596 00:34:17,400 --> 00:34:20,080 Speaker 1: the lockdowns that we imposed as a result of the pandemic. 597 00:34:20,120 --> 00:34:23,000 Speaker 1: But there are only trade offs, And as a Gene 598 00:34:23,000 --> 00:34:26,280 Speaker 1: made a point about socialization problems, there are a whole 599 00:34:26,280 --> 00:34:29,359 Speaker 1: host of other attendant issues which have to be incorporated 600 00:34:29,360 --> 00:34:32,840 Speaker 1: into any national COVID strategy. And it can be simply 601 00:34:32,880 --> 00:34:35,759 Speaker 1: about whether or not we're masking, we're social distancing, as 602 00:34:35,800 --> 00:34:39,080 Speaker 1: if there are no costs involved with any of those activities. 603 00:34:39,080 --> 00:34:42,560 Speaker 1: So very difficult tasks with the President and for governors 604 00:34:42,560 --> 00:34:45,279 Speaker 1: around the country. We've had a lot of mistakes, We've 605 00:34:45,360 --> 00:34:48,279 Speaker 1: learned a lot of lessons, but I don't think it's 606 00:34:48,360 --> 00:34:51,200 Speaker 1: wise today to predict what might be happening in September 607 00:34:51,480 --> 00:34:55,080 Speaker 1: or in December or next year. We may have to 608 00:34:55,160 --> 00:34:57,480 Speaker 1: learn to live with COVID, and the question becomes, how 609 00:34:57,480 --> 00:35:01,000 Speaker 1: do we balance the risk of transmission of COVID on 610 00:35:01,040 --> 00:35:03,920 Speaker 1: a relatively low level with the need for the American 611 00:35:03,920 --> 00:35:07,960 Speaker 1: economy and American society to become robust once again. Well, 612 00:35:08,040 --> 00:35:11,000 Speaker 1: and we certainly don't want to try to predict anything 613 00:35:11,080 --> 00:35:14,080 Speaker 1: in this case, John, I just wonder if some people, uh, 614 00:35:14,080 --> 00:35:16,640 Speaker 1: And there are different groups here. Some folks are still 615 00:35:16,760 --> 00:35:18,879 Speaker 1: very worried and don't want to go back to work. 616 00:35:18,920 --> 00:35:20,640 Speaker 1: There are a lot of people who think, you know, 617 00:35:20,680 --> 00:35:25,719 Speaker 1: what we already recovered from COVID, John, that's over. Well. 618 00:35:25,760 --> 00:35:29,480 Speaker 1: I understand that concern. I also understand the concerns of 619 00:35:29,600 --> 00:35:33,959 Speaker 1: business leaders, corporate leaders, civic leaders. We have to try 620 00:35:33,960 --> 00:35:35,600 Speaker 1: to find a balance. And I don't think there's a 621 00:35:35,680 --> 00:35:41,600 Speaker 1: single answer to provide an old purpose solution. This is 622 00:35:41,600 --> 00:35:43,880 Speaker 1: going to be operating at many different levels of an 623 00:35:44,000 --> 00:35:47,880 Speaker 1: enormous and very complex American society. And I think sometimes 624 00:35:47,920 --> 00:35:49,960 Speaker 1: we make the mistake of looking to the White House 625 00:35:50,400 --> 00:35:53,000 Speaker 1: for the single solution. And I don't mean this White House, 626 00:35:53,000 --> 00:35:56,440 Speaker 1: I mean any White House to a national concern. And 627 00:35:56,480 --> 00:35:57,920 Speaker 1: I think in many ways we leave it to the 628 00:35:57,960 --> 00:36:01,280 Speaker 1: American people, to the stage, to veners and two different 629 00:36:01,320 --> 00:36:03,640 Speaker 1: parts of the country, and to different companies to find 630 00:36:03,680 --> 00:36:06,640 Speaker 1: different ways to balance that what they think works best 631 00:36:06,680 --> 00:36:10,320 Speaker 1: at local and regional levels. Than a one size fits 632 00:36:10,360 --> 00:36:13,879 Speaker 1: all solution out of the White House. That's John Sidliti's 633 00:36:13,920 --> 00:36:18,640 Speaker 1: geopolitical strategist at Trilogy Adviser's diplomacy consultant for the State Department, 634 00:36:18,719 --> 00:36:21,600 Speaker 1: and always great to have a foreign look with John 635 00:36:21,600 --> 00:36:24,320 Speaker 1: when we're talking about foreign policy. Jeannie she and Zano 636 00:36:24,480 --> 00:36:28,560 Speaker 1: are Bloomberg Politics contributor. We thank you both as always, 637 00:36:28,560 --> 00:36:31,439 Speaker 1: and thanks to Jody Schneider for talking with us today 638 00:36:31,440 --> 00:36:34,120 Speaker 1: on Bloomberg Sound On. I'm Joe Matthew and Washington will 639 00:36:34,160 --> 00:36:37,160 Speaker 1: get back to this again tomorrow. Schoolhouse Rock still playing 640 00:36:37,200 --> 00:36:39,319 Speaker 1: in our heads. As we get a sense of where 641 00:36:39,360 --> 00:36:42,359 Speaker 1: the infrastructure debate is going, we'll have a lot more 642 00:36:42,400 --> 00:36:46,120 Speaker 1: to follow. Stay here, traffic and news headlines straight ahead, 643 00:36:46,760 --> 00:36:48,759 Speaker 1: an Joe Matthew, This is Bloomberg