Speaker 1: Now from our nation's capital. This is Bloomberg Sound On.
Speaker 1: When all the volts are talied. I am confident we
Speaker 1: will win. We can see the path ahead, we can
Speaker 1: see victory ahead. Nothing has changed on how we see
Speaker 1: the stark market. Bloomberg Sound On Politics, Policy and Perspective
Speaker 1: from DC's top name. Sorry, this is monistration. Just it
Speaker 1: doesn't seem to get a lot done. You may be asking,
Speaker 1: what's peloton. This party is united and it's poised to
Speaker 1: take back the Senate and to say if this country
Speaker 1: Sloomberg Sound On with Joe Matthew on Bloomberg Radio clicking.
Speaker 1: Senate primary in Pennsylvania still up in the air, but
Speaker 1: the youngest member of Congress is packing his bags and
Speaker 1: will be soon. Welcome to the fastest hour in politics.
Speaker 1: On this day after, we'll have the latest from Pennsylvania
Speaker 1: and the four other states that hit the polls with
Speaker 1: the Trump brand on the line in more and two
Speaker 1: dozen races this week. We'll talk about it in a
Speaker 1: moment with Lincoln Mitchell, writer and political analyst at Columbia University.
Speaker 1: Analysis ahead from our panel Bloomberg Politics contributors Genie Chantano
Speaker 1: and Rick Davis in for the hour and later you
Speaker 1: may have added summer blackouts to your list of problems,
Speaker 1: and it's partly because of climate change, not why you
Speaker 1: think though a Bloomberg story you need to hear about
Speaker 1: from our own Noreene Malick in New York. Today's destruction
Speaker 1: in the markets made its way to the White House
Speaker 1: by way of the press briefing today. Press Secretary Korean
Speaker 1: John Pierre. I've got to get used to saying that
Speaker 1: Bloomberg's justin sink in the briefing room, he asked the question.
Speaker 1: The White House prefers not to answer. Listen to this.
Speaker 1: We're now gotting into a point whereas some of the
Speaker 1: games that um have defined the president's tenure are being raised,
Speaker 1: and so is there a new level of a warm
Speaker 1: within the White House of problems? Well, as you know
Speaker 1: when we say this all the time, Josh, you know,
Speaker 1: it's just a uh the fetch chair. You know, the
Speaker 1: Federal Reserve is independent. We leave them to make their
Speaker 1: own policy decisions. We do not get involved in that.
Speaker 1: And nothing has changed on how we see the start market.
Speaker 1: We do not. That's not something that we keep an
Speaker 1: eye on every day. So I don't I'm not going
Speaker 1: to comment about that from here, I'm not going to
Speaker 1: comment on on what I thought was a very well
Speaker 1: framed question by Justin Sink referring to the gains that
Speaker 1: have been a hallmark of this administration, helped to define
Speaker 1: the early days of the Biden White House. The rebound
Speaker 1: in the stock market, just like the job market. It's
Speaker 1: one of the good stories the administration could tell, even
Speaker 1: though it wasn't or I guess is not telling it. Now,
Speaker 1: let's dig into this a bit deeper before we turn
Speaker 1: to primary NiFe. Bloomberg Markets reporter Abigail Doolittle is with
Speaker 1: us a special treat here on Sound On, Abigail, Thanks
Speaker 1: for joining us. People keep trying to call the bottom
Speaker 1: in this market. Is that going to be possible though,
Speaker 1: as long as inflation remains such a big story. Tough
Speaker 1: business to do and great to be here with you,
Speaker 1: Joe Uh. You know, it's clearly a difficult year and
Speaker 1: it's an interesting point that you're making there around the
Speaker 1: White House, and also the connection with inflation. Guess today,
Speaker 1: of course stocks plunging, as Charlie was outlining, and it
Speaker 1: has everything to do with one of investors worst fears
Speaker 1: coming true and that is that the soaring inflation picture
Speaker 1: finally hitting the corporate profit outlook. Yesterday it was Walmart
Speaker 1: today target tumbling more than the worst day since that's
Speaker 1: an important point because that was panicked selling back then.
Speaker 1: That's the kind of selling we had today as investors
Speaker 1: are somehow caught off guard by the fact that the
Speaker 1: company can't manage soaring inflation. Trying to call a bear
Speaker 1: market in this sort of environment, or excuse me, a
Speaker 1: bottom in this sort of environment, I think that that's
Speaker 1: probably a fool's game, especially when you after the bell
Speaker 1: have a company like Cisco bringing down guidance in a
Speaker 1: big way that reminds me of two thousand seven and
Speaker 1: ahead of the brutal selling in two thousand and eight.
Speaker 1: So a lot of moving pieces here, which also probably
Speaker 1: means we're not bouncing back a thousand points tomorrow, right,
Speaker 1: Probably not now. I that said, I do think that
Speaker 1: there is the case the possibility for some sort of
Speaker 1: a bear mark get rally, but not in a straight
Speaker 1: line up, because we are still above last week's low,
Speaker 1: which suggests that the buyers, the dip buyers, could come back,
Speaker 1: but in a very uneven, unpredictable way. The bigger picture though,
Speaker 1: and especially when you bring in the fundamental macros of
Speaker 1: the macro of UH. The SMP being a forecasting tool
Speaker 1: six months out, what is it telling us, Probably a
Speaker 1: recession at some point, plus the yield curve inverting back
Speaker 1: in the beginning of April our recession. So if we
Speaker 1: have some sort of reprieve, and if you recall back
Speaker 1: into other periods, difficult periods two thousand, two thousand three,
Speaker 1: that was a rolling bear market where there was lots
Speaker 1: of rallies in there. Two thousand and eight there were
Speaker 1: a couple of very nice rallies. So again we might
Speaker 1: get a reprieve, but the pictures not so nice. Maybe
Speaker 1: you don't read into it too far. Abigail Doolittle, thank you.
Speaker 1: This stock market route is happening just as the primary
Speaker 1: season gets underway in Earnest. Last night was the biggest
Speaker 1: one we've had yet, the biggest race on the map
Speaker 1: last night the Republican Senate primary, and Pennsylvania remains undecided.
Speaker 1: Right now, it's almost twenty four hours later. Here's out
Speaker 1: sounded last night with Dr Oz and David McCormick. Unfortunately
Speaker 1: we're not gonna have resolution tonight, but we can see
Speaker 1: the path ahead, we can see victory ahead, and that's
Speaker 1: all because of you, So thank you Pennsylvania. When all
Speaker 1: the votes are tallied, I am confident we will win. Yeah.
Speaker 1: How about that? That was Dr Oz right there, trying
Speaker 1: to be definitive without knowing he of course endorsed by
Speaker 1: Donald Trump. Up by about two tenths of a percent
Speaker 1: now leading McCormick by fewer than two thousand votes. That's
Speaker 1: where things stand. And don't hold your breath for this
Speaker 1: to be called. It's not gonna happen during the program.
Speaker 1: Here there are a hundred thousand mail in ballots I
Speaker 1: read that have to be processed and counted and Pennsylvania
Speaker 1: loss as elections officials can't start doing that till election days,
Speaker 1: so they're just getting into this now. As we get
Speaker 1: into this race. And a few others from last night
Speaker 1: with Lincoln Mitchell, author and political scientists from Columbia Universe City,
Speaker 1: Adjunct Associate Research Scholar in the Arnold Saltzman Institute of
Speaker 1: War and Peace Studies at Columbia to get the business
Speaker 1: card right, Lincoln, thanks for joining us. Uh. Some were
Speaker 1: surprised by David McCormick strength in the primary. Uh, would
Speaker 1: Dr Oz have been a contender without Donald Trump. He
Speaker 1: would have been a contender, but he wouldn't be neck
Speaker 1: and neck with with Dave McCormick without Donald Trump. And
Speaker 1: and the reason for that is that there were two
Speaker 1: very trumpy candidates in the race for that primary. In
Speaker 1: some respects a moment. Oz was not the most trumpy candidate.
Speaker 1: That was Kathy Barnett. But Trump's endorsement of Oz, I
Speaker 1: think took votes from Barnett and gave him to Oz.
Speaker 1: And that is the margin if he wins this thing,
Speaker 1: that will be the difference. Why did uh Barnett not
Speaker 1: impressed last evening that the whole story leading into the
Speaker 1: primary was this surging out of nowhere candidate with little
Speaker 1: money but kind of fizzles on voting day. Well, yes
Speaker 1: and no, Right, So she got almost a quarter of
Speaker 1: the vote in a race where is gonna no Kennedy's
Speaker 1: gonna gett most likely, So she was kind of in
Speaker 1: the thick of it. And you know, campaigns, the media
Speaker 1: coverage of campaigns tends to be about momentum and you
Speaker 1: know who's saying what, But a lot of campaigns are operational.
Speaker 1: Who has the most money, who can really kind of
Speaker 1: get the campaign trains running. And that's below the radar stuff.
Speaker 1: But I suspect that Barnett did not do a strongly
Speaker 1: there as she would have liked. Donald Trump is urging
Speaker 1: I can't keep the calling of Dr Oz the rest
Speaker 1: of the year. Can't memit Oz not to wise? Doctor Oz?
Speaker 1: Trump posted on Truth Social doctors should declare victory. It
Speaker 1: makes it much harder for them to cheat. He wrote,
Speaker 1: with the ballots that they quote just happened to find. Uh,
Speaker 1: are you surprised Dr Oz has not done this? In fact,
Speaker 1: declare victory? Well, first of all, congratulations for looking at
Speaker 1: truth and Social I didn't I lifted it from That
Speaker 1: might make you like the eleventh person outside the Trump
Speaker 1: family to do that. From from his strategic perspective, it's
Speaker 1: never you know this, this line that Trump keeps saying
Speaker 1: that every time he loses or someone he doesn't he
Speaker 1: likes loses, that the election was stolen is a lie
Speaker 1: and it's very damaging to democracy. And if that seems
Speaker 1: to be what Donald Trump wants to do, so from
Speaker 1: that perspective, sure, why not. From a more strategic perspective,
Speaker 1: it's not a bad idea to declare victory, because then
Speaker 1: if the race is close, you know, if the race
Speaker 1: is close, if there are questions, and sometimes there are
Speaker 1: not because someone is cheating or not because some secretary
Speaker 1: of state is doing shenanigans, but because there are questions,
Speaker 1: you know, was this ballot spoiled or not, you have
Speaker 1: kind of a strategic advantage. But realistically, it doesn't matter
Speaker 1: what oz says until all of the ballots are counted,
Speaker 1: and we're gonna have to count the ballots. And we
Speaker 1: went through this in Pennsylvania in November, when, as many expected,
Speaker 1: the absence votes pushed Biden over the top there, so Pennsylvania,
Speaker 1: you know, we know what Trump feels about Pennsylvania. Here
Speaker 1: we go again. Would oz or pose a stronger challenge
Speaker 1: to John Fetterman or is it the same race? My
Speaker 1: sense is that this is the same race. And I
Speaker 1: say that for two reasons. One, the only thing we
Speaker 1: know for sure about electability is that we don't know
Speaker 1: anything about electability. So anytime some pundit like me says
Speaker 1: this one's electable, this one's not, we're just guessing. We
Speaker 1: don't know what we're saying. And you know, Donald Trump
Speaker 1: in January. In mid it was actuallymatic that Donald Trump
Speaker 1: could never get elected president. In mid two thousand seven,
Speaker 1: it was actually matic that Barack Obama could never get
Speaker 1: elected president. So my sense is that this is going
Speaker 1: to be a very close race. Pennsylvania is always a
Speaker 1: close state. All of the kind of macro big picture
Speaker 1: trends say that this is going to be a Republican
Speaker 1: year of Pennsylvania may not be an exception to that.
Speaker 1: On the other hand, the Democrats have nominated on unusual
Speaker 1: intrigue in candidate who may be able to pull some
Speaker 1: of those voters, particularly some of those younger male voters,
Speaker 1: away from Trump or the Republican Party back to Federman
Speaker 1: of the Democratic part With a drive to legalize marijuana,
Speaker 1: they say, may bring in voters who wouldn't otherwise vote
Speaker 1: Lincoln exactly, and it sends a message that he's not
Speaker 1: this kind of stagy old each of broccoli Democrat and
Speaker 1: and and there's one other There's that's my point, right,
Speaker 1: one other one other point I would make is that
Speaker 1: for all of this talk about how this is going
Speaker 1: to be such a Republican year, and don't forget there
Speaker 1: was a competitive more or less Republican primary for governor
Speaker 1: in Pennsylvania. We haven't talked about that much, but there's
Speaker 1: a story there. There was not a competitive primary for Democrat.
Speaker 1: Jos Shapiro ran on a post and and only a
Speaker 1: hundred thousand more Republican voters came out. So there's more,
Speaker 1: perhaps more Democratic strength in Pennsylvania than it seems at
Speaker 1: first cut rate. I want to get into that race
Speaker 1: with you, because Trump did have a win UH in
Speaker 1: the Republican cobinatorial race. Doug Mastriano got the nod UH
Speaker 1: described in almost every major news UH organization as a
Speaker 1: election and denier. He's the election denier who today prompted
Speaker 1: the Cook Political Report to turn the race from toss
Speaker 1: up to lean Democrat. Here, by the way, if we
Speaker 1: can hear from the nominee, here's Mastriano on stage last night.
Speaker 1: They'd like to call people who stand on the constitution
Speaker 1: far right and extreme. I repudiate that that is crap
Speaker 1: okay uh. Lincoln the state Democratic Party actually sent out
Speaker 1: mailer's supporting Mastriano. This part of the story is great.
Speaker 1: His Democratic opponent, who you mentioned, Joshapiro, spent over eight
Speaker 1: hundred thousand dollars on ads calling Mastriano too conservative and
Speaker 1: quote one of Trump's strongest supporters unquote, and it actually
Speaker 1: mean they looked like attack ads, but they boosted his
Speaker 1: standing among conservatives. UM. Right, And that is that the
Speaker 1: kind of confidence that I mean, is that appropriate for
Speaker 1: Democrats to be that confident? The short answer that is no, Uh.
Speaker 1: The longer answer that is that those statements are in
Speaker 1: fact empirically true about Mastriano, And we shouldn't. You know,
Speaker 1: Jos Shapiro is not is an actual real person here,
Speaker 1: and he's a very good candidate. He's sharp, he's smart,
Speaker 1: he's a good looking guy. So I think he's the
Speaker 1: right guy for the Democrats uh to be nominating, and
Speaker 1: he has a real shot at winning. UM. But again,
Speaker 1: you know, the Mastrianto can win. The Republican Party nominee
Speaker 1: in Pennsylvania this year is going to have a real
Speaker 1: shot for governor no matter who it is, and the
Speaker 1: damage it would do not just to Pennsylvania, but imagine
Speaker 1: the election if instead of Governor Wolf, who was a
Speaker 1: Democrat in office in Pennsylvania, there is a Republican governor
Speaker 1: to go along with a very likely be a Republican
Speaker 1: majority of the Pennsylvania state lection point, a Republican slate
Speaker 1: of electors could overturn the will of the voters. So
Speaker 1: we are really getting into I know it's a it's overstated,
Speaker 1: but really uncharted territory as we approach. One big loss
Speaker 1: came in North Carolina. Madison Cawthorne. I have to ask
Speaker 1: you about before you go, the youngest member of Congress.
Speaker 1: He lost the state Senator Chuck Edwards. Can we even
Speaker 1: judge this as a Trump loss? I mean, with with
Speaker 1: all the trouble that Cawthorne made for himself, he sort
Speaker 1: of created his own reality, He created his own reality.
Speaker 1: But look, Donald Trump has been creating his own reality
Speaker 1: for decades, and and part of Donald Trump's reality was
Speaker 1: that Madison Cawthorne should get reelected, and he went and
Speaker 1: endorsed him. So I think this is a defeat for Trump.
Speaker 1: I don't know that it means anything. Congressman ed Edwards,
Speaker 1: who is likely going to win that that that general
Speaker 1: election to go to Washington, is going to vote and
Speaker 1: and present and have the same impact on legislation and
Speaker 1: policy as Madison Cawthorne will. He will probably have a
Speaker 1: better control over his personal life I suspect that wouldn't
Speaker 1: take a lot. Uh, No, would not. Lincoln. I'm glad
Speaker 1: you came to talk to us today. Great insights from
Speaker 1: Lincoln Mitchell Columbia University with us on the fastest hour
Speaker 1: in politics. Come back often Lincoln, over the course of
Speaker 1: his campaign cycle. We've got wild stories to talk about.
Speaker 1: We're really just getting into this now, if you can imagine.
Speaker 1: I'm not sure if he can say last night was
Speaker 1: anything but a win for Donald Trump when you think
Speaker 1: about it, even the losers in some cases were Trumpier
Speaker 1: than the winners in the races he chose to endorse.
Speaker 1: Let's assemble the panel here. Great to hear Jeannie Chanzano
Speaker 1: and Rick Davis back together, and certainly a lot to
Speaker 1: talk about after last evening. Isn't that the truth, Jennie,
Speaker 1: We're not only talking about Trump all day and I'm
Speaker 1: part of this. I'm lighting the fires again apparently in
Speaker 1: two But when you look at the contest, particularly this
Speaker 1: Senate race in Pennsylvania, they were all trying to get
Speaker 1: closer to Trump, no matter which candidate he picked. Yeah,
Speaker 1: and you know, even if a McCormick wins over oz
Speaker 1: Oz Endorsed by Trump and McCormick not. You know, McCormick
Speaker 1: has famously, you know, shied away from saying basic things
Speaker 1: like President Biden was the is the duly elected president.
Speaker 1: I mean, that's how far to the MAGA portion of
Speaker 1: the party all three of these candidates are, and McCormick
Speaker 1: being the least of the three. So that's where we are.
Speaker 1: And you know, you were just talking about this with
Speaker 1: Lincoln Trump out today saying that Dr Oz should just
Speaker 1: do what he did in and just say I won
Speaker 1: the I have the votes right now I want. And
Speaker 1: of course, what's going to happen if McCormick pulls this through,
Speaker 1: which on mail ballots he very likely could. Trump is
Speaker 1: going to claim that the election was once again stolen.
Speaker 1: So to your point, this is all about Trump and
Speaker 1: the candidates are supporting that. I've been looking forward to, uh,
Speaker 1: to your top line on the evening as a whole here,
Speaker 1: Rick is, and I do feel like Pennsylvania is sort
Speaker 1: of the focal point, uh, certainly that we have taken,
Speaker 1: although there were a number of other races around the
Speaker 1: country that speak to what happened. But you know, the
Speaker 1: Republican contests coast to coast were resonating Trump. When you
Speaker 1: look at some of the folks who wont and in
Speaker 1: this case an undecided race between two Trump supporting candidates
Speaker 1: in Pennsylvania, what do you feel you know, look, I
Speaker 1: think you know, Donald Trump has the energy in the party.
Speaker 1: He doesn't have every ingle Republican the party that backs him,
Speaker 1: but he has the activists. And the activists really turned
Speaker 1: out in this election. I mean, this was one of
Speaker 1: the highest uh GOP turnouts in a primary in two decades.
Speaker 1: I mean that's actually saying something. We keep talking about
Speaker 1: what the numbers are, but this was a really good
Speaker 1: turnout for Republicans. The story here is that that whatever
Speaker 1: got him excited, and we think it's probably Donald Trump's
Speaker 1: involvement in this campaign. Uh As everyone has said, each
Speaker 1: one of these three candidates running for the Senate and
Speaker 1: the guy who won the governor's nomination, we're all Trump apostles,
Speaker 1: and so you got to give him some of that
Speaker 1: do and and he's turning people out. Not only was
Speaker 1: the election in two or twenty, you know, the highest
Speaker 1: turnout in a hundred years, but now we see it
Speaker 1: replicated here. The really bad news, uh is is that
Speaker 1: the Democratic Party seems to lack that energy, lack that
Speaker 1: turnout capability. Um, you know, we know the intensities from
Speaker 1: the surveys we've read. And so while we're all talking
Speaker 1: about Donald Trump and his impact on the Republican Party,
Speaker 1: the Democrats are wishing they had somebody who could actually
Speaker 1: generate that kind of excitement. Well, sure, you read on
Speaker 1: the Senate primary, Rick, is this something that you think
Speaker 1: doctor memit Oz can pull out? You know, look, I
Speaker 1: mean most of the energy on the early ballots, you know,
Speaker 1: the absentee or the mailing ballots were McCormick. He's winning
Speaker 1: those slightly above Oz. But Oz one election day, so
Speaker 1: you gotta assume Oz's numbers are in and and that
Speaker 1: he's gonna sort of lose dribs by drabs. I mean,
Speaker 1: in just the preparatory time of this, this this program, Um,
Speaker 1: McCormick picked up two hundred votes, I mean, like you know,
Speaker 1: and there's only seventeen hundreds of you know, dividing them. So, uh,
Speaker 1: if you do play the long game, you see, Uh,
Speaker 1: could he could he make up that seventeen hundred? I
Speaker 1: think the answer is sure And within a half it's
Speaker 1: a half percent. This this this prompts a recount, right,
Speaker 1: this wouldn't be a runoff, but a recount, and then
Speaker 1: the fund begins. Genie, if we got to that point, oh,
Speaker 1: I think we're going to get there, and let's not
Speaker 1: forget we We not only may see a recount, we
Speaker 1: could see candidates filing lawsuits. That's where I'm going. Yeah,
Speaker 1: this thing could extend and extend out one thing. I
Speaker 1: think Rick is right to talk about turnout, but I
Speaker 1: do want to say Democratic turnout in several of these
Speaker 1: states outpaced eighteen and a lot of people are asking why.
Speaker 1: Some people suggesting it may be abortion. I'm not sure.
Speaker 1: But when you look at Fetterman, he won every single county,
Speaker 1: you know, not a typical Democratic candidate. Certain commamb his
Speaker 1: opponent was the Biden candidate, if you will, lost big time.
Speaker 1: So Democrats may have a candidate there who they could
Speaker 1: use across the country as sort of somebody who could
Speaker 1: break through what's otherwise a really good Republican year. They're hoping, Rick,
Speaker 1: do you put dr Oz in a hoodie and in
Speaker 1: shorts and get him out there if that's the race?
Speaker 1: I hope not. How do you bet John Federman? You know,
Speaker 1: look I mean, I think that first of all, it's
Speaker 1: gonna be um advantage Republicans, right, I mean, there's there's
Speaker 1: just noes disputing the anxiety that voters have towards the
Speaker 1: current administration. Uh, Biden's going to be on the ballot
Speaker 1: along with Fetterman, whether he likes it or not. And
Speaker 1: in and in that regard, UH, you're probably advantage oz
Speaker 1: or whoever the Republican nominee is. Uh. Then they've got
Speaker 1: to run a good campaign. And there's no question Federman
Speaker 1: is a talented Paul who has done an enormous job,
Speaker 1: who is hopefully kind of get out of the hospital
Speaker 1: and campaign hard. Because we want to see the Rockham
Speaker 1: Stockham campaign that Pennsylvania is known for. It's gonna be
Speaker 1: a riot. How about Doug Mastriano, what do you make
Speaker 1: of the the idea that Democrats helped to get him
Speaker 1: elected thinking that if he would be easier to knock down.
Speaker 1: Is that a fool's aaron? Well, I would say that's
Speaker 1: a dangerous aaron, because, Um, the only thing worse than
Speaker 1: them actually getting him the nomination is him being in
Speaker 1: position to be the governor and and and so who's
Speaker 1: going to be held to blame for that at that stage. Um,
Speaker 1: trying to be too cute by half in politics usually
Speaker 1: doesn't work out well. Uh And again, I mean, like
Speaker 1: everyone's talking today about what an oddball this guy Mastriano is,
Speaker 1: and you know he's you know, really stunk up by
Speaker 1: the January six activity and that kind of thing. But
Speaker 1: this could be such a Republican year that people like
Speaker 1: him even get elected. And that's saying something about the
Speaker 1: strength of the Republican cycle, but it also is a
Speaker 1: warning that be careful who you you put into the
Speaker 1: nominee spy. You could have Democrats having put thousands, hundreds
Speaker 1: of thousands of dollars into adds that that that supposedly
Speaker 1: helped Mastrianna get elected to make more ads in a
Speaker 1: general with images of him in Washington on January six,
Speaker 1: and help him to win the whole thing with the
Speaker 1: same strategy. Yeah, and here's a guy with a very
Speaker 1: radical message. You know, he wanted to he was fighting
Speaker 1: to overturn the election in he's somebody who is at
Speaker 1: the rally on January six. He wants to appoint a
Speaker 1: secretary of State that will throw out the voter rolls.
Speaker 1: It's very dangerous territory. Democrats have to be careful. You know.
Speaker 1: This is not to compare Mastriano to Ronald Reagan or
Speaker 1: Hillary Clinton, but you know they did the same thing
Speaker 1: in some of these races where they got you know,
Speaker 1: overboard on sort of. You know, even when Ronald Reagan
Speaker 1: was running for governor way back when, in terms of
Speaker 1: saying this guy can never win, let's push him forward.
Speaker 1: And what did he do? He won? So that's dangerous territory.
Speaker 1: But Joe, if you if we have Fetterman on, we
Speaker 1: can all wear hoodies and shorts, including Rick Davis. So
Speaker 1: that's right, even at a presidential event. Hey, Rick, you're
Speaker 1: not gonna have Madison Cawthorne to kick around anymore. Huh.
Speaker 1: All I can say after that last comment is it's
Speaker 1: a good thing we're on radio and no one'll ever
Speaker 1: know if I'm wearing a hoodie or not. Um. Yeah,
Speaker 1: Madison author, he's history toast. Put a fork in him.
Speaker 1: He's done. Turn the page. We're all back together, Rick, Genie,
Speaker 1: Joe back in the nation's capital following a lovely visit
Speaker 1: to the hub of the universe. Wasn't that fun? In Boston?
Speaker 1: Coming up next, they're talking blackouts because we needed more
Speaker 1: to worry about this summer. It's a climate change story.
Speaker 1: We'll have it next. This is Bloomberg broadcasting live from
Speaker 1: our nation's capital, Bloomberg to New York, Bloomberg eleven Frio
Speaker 1: to Boston, Bloomberg one oh six one to San Francisco,
Speaker 1: Bloomberg nine sixty to the country Serious x M General
Speaker 1: one nine and around the globe the Bloomberg Business app
Speaker 1: and Bloomberg Radio dot Com. This is Bloomberg Sound On
Speaker 1: with Joe Matthew. The headline, I'm a terminal vast swath
Speaker 1: of US at risk of summer blackouts rates because high
Speaker 1: gas prices and a war in Ukraine were not enough.
Speaker 1: We'll talk about it next with Bloomberg's Noreene Malick. If
Speaker 1: you think about where the national consciousness might be come
Speaker 1: the depths of summer gas prices, maybe a new highs
Speaker 1: recent highs, possible food shortages because of everything going on
Speaker 1: in the war. Can't get baby formula. The government now
Speaker 1: warning of possible political violence tied to the Roe v.
Speaker 1: Wade decision. But let's call that a worst case scenario
Speaker 1: for everyone for this administration, certainly until I read this
Speaker 1: story on the terminal. Today we could add another layer.
Speaker 1: A vast swath of North America from the Great Lakes
Speaker 1: to the West Coast at risk of blackouts this summer
Speaker 1: as heat, drought shuttered power plants and supply chain woes
Speaker 1: strain the electric grid. This is real, and we get
Speaker 1: to talk about it with Bloomberg's Noreen Malick. Noreen, I
Speaker 1: was really taken. Thank you for coming into bring this
Speaker 1: important story to us, Taken by the cause. As you write,
Speaker 1: climate changes partly to blame. And it's not what people
Speaker 1: might think, uh, as much as the fact that it
Speaker 1: it's it's limiting supplies of hydro electric power. Are powers evaporating,
Speaker 1: isn't it? Yes? At these the US grids are facing
Speaker 1: multiple stress factors right now. You know, for years we've
Speaker 1: been seeing on and off, like in California and the
Speaker 1: West where drought conditions, really dry conditions are reducing the
Speaker 1: amount of hydro power. So that lower snowpack in the
Speaker 1: mountains and just lower rain overfall means that there's sorry
Speaker 1: over the winter and in spring means that there's less
Speaker 1: water that's going into reservoirs to run these hydro plants.
Speaker 1: So that's been UM an issue for years, and it's
Speaker 1: now being exacerbated by even more extreme weather conditions, so
Speaker 1: more severe droughts UM which can also um make the
Speaker 1: heat and summer more intense. And then on top of that,
Speaker 1: the grids are facing um you know, like we're trying
Speaker 1: to like protect against climate change by pursuing this fast
Speaker 1: energy transition and by you know, adding more solar and wind,
Speaker 1: and but that's also adding a lot of stress to
Speaker 1: the grid because wind and solar, you know, they're going
Speaker 1: to supply power when their sunshine and when the wind
Speaker 1: is blowing, and so it's intermittent and part of and
Speaker 1: you don't have enough backup power to um smooth out
Speaker 1: the variations, the fluctuations, especially at in the evening, like
Speaker 1: when the sun sets. You have such a massive drop
Speaker 1: in solar generation in California and increasingly in Texas that
Speaker 1: you need to quickly bring on within like that ages
Speaker 1: the equipment. You write that electricity supplies will be especially
Speaker 1: tighten the Midwest. How come so the stress in the
Speaker 1: Midwest has been growing for a while. There's a lot
Speaker 1: of coal plants they're shutting down. You know, it's a
Speaker 1: trend across the country But what was really stunning is
Speaker 1: several weeks ago, you know, the Mid Continent into Independent
Speaker 1: System Operator or miceo UM. They run the grid from
Speaker 1: the Midwest to the Gulf Coast. They ran an auction
Speaker 1: to like secure supply lie for this summer um and
Speaker 1: they suddenly didn't have five giga watts. More than five
Speaker 1: giga watts show up and at least three giga watts
Speaker 1: is coals and and the rest is natural gas. And
Speaker 1: they're shutting down faster than expected even a year earlier.
Speaker 1: So they also have a transition there are seeing demand
Speaker 1: um rebound faster post pandemic, and then they also just
Speaker 1: suddenly have a lot of supply missing. Well, this is
Speaker 1: a heck of a story. I hope that everyone gets
Speaker 1: a chance to read it. Norine, thank you for giving
Speaker 1: us a little bit of a chance to understand this.
Speaker 1: As we are now also at risk of summer blackouts.
Speaker 1: Let's bring the panel back as promised, Rick and janr here. Rick,
Speaker 1: this is the kind of thing that the president, you know,
Speaker 1: I suppose is going to take the blame for. No
Speaker 1: matter what the administration does at this point, it's going
Speaker 1: to reflect once again on energy policy. People are gonna
Speaker 1: say it's the same guy who is causing me to
Speaker 1: pay almost five dollars a gallon for gas. Yeah, the
Speaker 1: gas is going to be a drain to uh to
Speaker 1: his ability to communicate with vote is because they're gonna
Speaker 1: be so angry. Uh. I heard today that the Fed's
Speaker 1: misery index. I haven't heard that since Jimmy Carter was president,
Speaker 1: Uh is the highest now since it was in the
Speaker 1: nineteen eighties, Jimmy Carter and and I think those are
Speaker 1: the kinds of things we're gonna hear more and more of.
Speaker 1: I mean, misery is spelled in a lot of different
Speaker 1: ways economically, but um, for voters, Uh, they're already experiencing it.
Speaker 1: And when you then start stacking that onto Okay, what
Speaker 1: does he talking about. Well, he can say that he
Speaker 1: got this trallion dollar infrastructure bill passed and we're gonna
Speaker 1: be building a billgraded grid and that kind of thing.
Speaker 1: And and you know, uh, someday he may get a
Speaker 1: plaque on a tower somewhere that says, Hey, this is
Speaker 1: the president who built this grid. But that's not gonna
Speaker 1: help in this November and maybe not November either, It's
Speaker 1: just not in time. Uh. Genie I don't know. Uh,
Speaker 1: I don't know on this one. How does the White
Speaker 1: House get ahead of this problem when the lights start
Speaker 1: going out? Uh, that's not good obviously, as we'd we'd
Speaker 1: be you know, within three or four months of the
Speaker 1: mid terms. Yeah. While I'm listening to this, I'm thinking,
Speaker 1: you know, you're taking a population that's just got through
Speaker 1: a one year pandemic. You're attaching onto that this great
Speaker 1: uncertainty in the markets, inflation, enormous gas prices, people out
Speaker 1: in California paying seven eight dollars a gallon, and you
Speaker 1: stack on that rolling if hopefully if they're blackouts, they're
Speaker 1: just rolling, but they may be more blackouts. And it's
Speaker 1: very very difficult politically for the Democrats to do anything.
Speaker 1: And you know this is why this new generic uh,
Speaker 1: this new generic pole that just came out, Battleground Pole,
Speaker 1: shows Republicans beating Democrats by eight points as we go
Speaker 1: into the mid term, and it could get worse. So
Speaker 1: this could be a tsunami in terms of Republicans taking
Speaker 1: over Congress, unless, of course, Mitch McConnell's worst nightmare. They
Speaker 1: nominate candidates who can't win a general election, and that's
Speaker 1: where Democrats feel a little bit of hope as they
Speaker 1: look at somebody like Mastriano. But as we were just
Speaker 1: talking about, you know, he could, to Rick's point, win
Speaker 1: in an environment like this, so very precarious for the
Speaker 1: White House to try to address these things and very
Speaker 1: few tools at their disposal to do so. You mentioned that,
Speaker 1: Rick earlier, I was talking to somebody. You start talking
Speaker 1: about blackouts. They say, boy, that's kind of like ninety eight.
Speaker 1: What else is going on around that song? Well, how
Speaker 1: about those long lines. I don't expect you to remember this,
Speaker 1: but I actually had a car then, and uh, and
Speaker 1: you had to sit in the line to get gas.
Speaker 1: I mean, it's one thing to pay six bucks a
Speaker 1: gallon where we might be headed this summer, but it's
Speaker 1: another thing to have to wait an hour or so
Speaker 1: to get that gas. And I don't know how much
Speaker 1: patience is left in this electric I was in the
Speaker 1: back seat of my parents car. That was back when
Speaker 1: they could lock the back doors with the double locks
Speaker 1: and before the windows though only went halfway down. Rick
Speaker 1: and Genie with us for the rest of the hour
Speaker 1: our political panel on sound on, We're gonna check the
Speaker 1: markets again for you. We'll check traffic to help you
Speaker 1: get home as well. I'm Joe Matthew. This is Bloomberg
Speaker 1: This he's Bloomberg Son on with Joe Matthew on Bloomberg Radio.
Speaker 1: You know they like to say Washington is Hollywood for
Speaker 1: ugly people, and who could claim them. But the staffers
Speaker 1: on Capitol Hill are about to get in really good shape.
Speaker 1: As we learned from the Republican leadership in our House
Speaker 1: of Representatives, Democrats are having the something called the House
Speaker 1: Center for well Being make Peloton corporate wellness benefits available
Speaker 1: two staffers. This includes members of the Capitol Police. The
Speaker 1: Peloton All Access and Peloton app as I read in
Speaker 1: the Hill, do not require a bike, but do include
Speaker 1: thousands of on demand classes. And Kevin McCarthy was worked
Speaker 1: up about this today even when after the company itself,
Speaker 1: here's the Minority leader on the floor. You may be asking,
Speaker 1: what's Peloton. It's a bike that costs about two thousand dollars.
Speaker 1: Not only that, each month you pay a monthly subscription
Speaker 1: fee to ride your two thousand dollar bike. And best
Speaker 1: of all, it's stationary and they charge you about three
Speaker 1: hundred dollars to set it up. So it's a two
Speaker 1: thousand dollar bike that you pay to use and pay
Speaker 1: to set up, that doesn't go anywhere. What's a business
Speaker 1: like that, That's a multibillion dollar business publicly traded. Actually,
Speaker 1: do you get a sense that he has one at home? Uh?
Speaker 1: Speaker Pelosi's office referred inquiries to the House Administration Committee,
Speaker 1: which referred reporters to the Chief Administrative Officer. But that's
Speaker 1: not all. Was the peloton. That's not all that had
Speaker 1: Kevin McCarthy upset today as a sign outside the Food
Speaker 1: Service Administration in the House the Rayburn House office building,
Speaker 1: to be more exact, advertised six pack and more with
Speaker 1: dre inks on demand at drinks dot House dot gov. Beer, wine, liquor, juice, soda,
Speaker 1: more can be ordered for pickup or delivery to your
Speaker 1: office with valid identification. The idea here is that taxpayer
Speaker 1: money is underwriting a liquor store, or, as we call
Speaker 1: it in Boston, a packy in the House of Representatives.
Speaker 1: The vendor SIDEXO, which operates the House cafeterias, now offering
Speaker 1: same day orders for alcohol online. As we reassemble the panel,
Speaker 1: Rick Davis, Genie Chanzano, Bloomberg Politics contributors, but you wish
Speaker 1: you had that when you were working on the hill, Rick, Well,
Speaker 1: I'm not saying we didn't have something like that. Well,
Speaker 1: the thing is, you know everyone knows. Look, if you
Speaker 1: ever spend time on Capitol Hill, you know staffers frequently
Speaker 1: go out at night when there are meetings or the
Speaker 1: offices working late to get food, and there's usually a
Speaker 1: box of wine and beer something coming back in as well.
Speaker 1: The idea, though, is that Sadexo, which is funded in
Speaker 1: part by taxpayer money, that this is kind of offensive.
Speaker 1: Is that going too far? Well, I think you could
Speaker 1: actually rack this up to being medicinal, not celebratory. Okay,
Speaker 1: So I mean I think those people working on Capitol
Speaker 1: Hill need this for their own well being. Speaking of
Speaker 1: well being, and I would argue that a good bottle
Speaker 1: of Jack Daniels will make you feel a lot better
Speaker 1: than a Peloton bicycle and Rix in damn good shape.
Speaker 1: I should add, you need Do you think Kevin McCarthy
Speaker 1: is a Peloton at home? Joe? You got me at
Speaker 1: Packy Because of course I learned a long time ago
Speaker 1: nobody outside of like Connecticut and Massachusetts refers to the
Speaker 1: package stories. Yeah, that's what we said. Back in the day. Um,
Speaker 1: you know, I have to say, you know, to deny
Speaker 1: anybody who has the fortitude to work on Capitol Hill
Speaker 1: access to something to increase their mental and physical well
Speaker 1: being seems to be a bridge too far. And of course,
Speaker 1: you know, Zoe Lofgren and Nancy Pelosi said this was rejected.
Speaker 1: It was access in terms of Peloton to the app
Speaker 1: I mean, you can go on and on, but the
Speaker 1: reality is, this is Kevin McCarthy trying to focus on
Speaker 1: something other than the craziness going on in his own
Speaker 1: caucus and trying to you know, appoint the American public
Speaker 1: to you know, crazy spending by the Democrats which did
Speaker 1: not actually happen. Unbelievable. Uh. As far as the Pelotons
Speaker 1: go here, Rick, you may, you may prefer a bottle
Speaker 1: of bourbon, but you could say that this is actually
Speaker 1: appropriate as they compete for talent. I mean a lot
Speaker 1: of companies are doing this kind of stuff to retain
Speaker 1: or to attract or retain employees. Uh sure, Uh. And
Speaker 1: and there are all kinds of wonderful perks that goes
Speaker 1: along with working on Capitol Hill. Uh. You know, those
Speaker 1: eighteen to twenty two hour days. Uh, you know, they're
Speaker 1: they're extremely attracted to people who have insomnia. And uh so, look,
Speaker 1: I think I think you've never had a problem recruiting
Speaker 1: Capitol Hill. I mean, it is the seat of government.
Speaker 1: It is where the action is. Uh and any young
Speaker 1: politico wants to spend a little bit of time up there.
Speaker 1: So hopefully the reason people want to gravitate to serving
Speaker 1: their country isn't because they can ride a stationary bicycle. Yeah,
Speaker 1: fair enough. I want to ask you both about Elon
Speaker 1: Musk while you're here. As he tweets today that he
Speaker 1: is now going to be voting Republicans, says he will
Speaker 1: vote Republican, slamming Democrats as a party of division and hate. Now,
Speaker 1: this follows comments that he made last evening that I'd
Speaker 1: like you both to hear comments about the Biden administration
Speaker 1: versus the Trump administration, and as he's kind of criticizing
Speaker 1: Joe Biden here he well, I guess a backhanded complimented
Speaker 1: Donald Trump. Doesn't know what he said. I mean, this
Speaker 1: is administration just it doesn't seem to get a lot done,
Speaker 1: like and you know, um whatever, like the Trump administration,
Speaker 1: leaving Trump aside. A lot of people in the administration
Speaker 1: who were effective at getting things done so uh but
Speaker 1: this this administration seems just just to not have like
Speaker 1: the drive to just get done. Okay, now, of course
Speaker 1: you have to leap the CEO of SpaceX Tesla maybe
Speaker 1: soon Twitter. But this kind of conversation, uh, Genie is
Speaker 1: actually what people end up talking about at the dinner table,
Speaker 1: I guess, as well as anything else when Elon Musk
Speaker 1: talks now politically, he does seem to be impacting the
Speaker 1: political conversation. Uh. And this is an interesting development here
Speaker 1: that he's going to vote Republican all the time as
Speaker 1: he's trying to buy Twitter supposedly and getting people worked
Speaker 1: up about freedom of speech. How does this end? Well,
Speaker 1: you know it's interesting. You've got Jeff Bezos over the weekend,
Speaker 1: you know, attacking the di Biden administration. You have Elon
Speaker 1: Musk um saying he's to vote Republican taking them on.
Speaker 1: And you know, one thing that Democrats can say is
Speaker 1: the billionaires seem to have a lot of problems with
Speaker 1: what's coming out of the White House, and in this
Speaker 1: environment that may not be such a bad message. Um.
Speaker 1: You know what happens with Elon Musk in terms of
Speaker 1: Twitter is anybody's guests right now. But as we look
Speaker 1: at what happened in Buffalo, and we look at the
Speaker 1: live streaming not on Twitter um that occurred in that context,
Speaker 1: all of his talk about absolute freedom of speech really
Speaker 1: raises a number of questions. So as he talks about
Speaker 1: the Biden administration not getting things done, he has a point.
Speaker 1: There have been things not done, and of course Congress
Speaker 1: owns a lot of that, half of them those people
Speaker 1: being Republicans. But there's also a question of what Elon
Speaker 1: Musk would do if he bought Twitter in terms of
Speaker 1: things like the speech that came out of Buffalo. So
Speaker 1: his you know, there's a lot of questions for Elon Musk,
Speaker 1: and the talk of you know, this being a democratic
Speaker 1: issue in a split Congress is something he also should
Speaker 1: answer for. In the past, I've got the tweet here,
Speaker 1: Rick the whole thing. In the past, I voted Democrat
Speaker 1: because they were, in parentheses, mostly the Kindness party. But
Speaker 1: he says they've become the party of division and hate,
Speaker 1: so I can no longer support them and will vote Republican.
Speaker 1: Now watch their dirty tricks campaign against me unfold. With
Speaker 1: a little popcorn emoji is his voice in the political
Speaker 1: discourse important in this midterm cycle? Sure, Joe, I think
Speaker 1: you touched upon it. I mean there are a group
Speaker 1: of American voters who want to and and spend time, uh,
Speaker 1: both with the products that he makes. You know, Tesla
Speaker 1: solar panels uh uh, you know the benefits of the
Speaker 1: satellite business and or you know, uh, telecommunications and and
Speaker 1: and potentially UM and potentially Twitter and so you know,
Speaker 1: if there's a demographic that's forty and under gamers, technology people,
Speaker 1: folks who like to travel. I mean, like, the guy
Speaker 1: hits it hard and so I'm sure, look he's got
Speaker 1: what I forget, how many million Twitter followers. That is
Speaker 1: no small thing. And so when he does speak, there
Speaker 1: are a lot of people who react to that. And
Speaker 1: if I were the administration, you know, I'd find out
Speaker 1: who was responsible for coordinating with him, because it's either
Speaker 1: the Department Offense or the Department of Energy here. So
Speaker 1: somebody was talking to a guy who has a lot
Speaker 1: of exposure to the federal government and say, what can
Speaker 1: we do to try and get this dialogue change because
Speaker 1: this is not productive for this administration. Well, Marty Walsh
Speaker 1: was down at one of his plants. I think the
Speaker 1: Texas plant. We're wearing cowboy boots a couple of months ago, Genie.
Speaker 1: But Elon Musk was never invited to any of the
Speaker 1: electric car events, the many e V events that the
Speaker 1: White House had parking Gms and Fords on the south lawn.
Speaker 1: Would it have made a difference if they had acknowledged
Speaker 1: his his place in the universe at that point. I
Speaker 1: think it may have. It's hard to tell with Elon Musk,
Speaker 1: but I think it may have, and he does deserve respect,
Speaker 1: and it is a big blunder if it wasn't blunder,
Speaker 1: which I'm not sure it was on the part of
Speaker 1: the White House, which made to be the start of
Speaker 1: some of his frustration. But again, if you look at
Speaker 1: what he's talking about, the administration doesn't get things done.
Speaker 1: Getting things done in Washington requires Congress. Congress is controlled
Speaker 1: half by Republicans. So let's just ask him what could
Speaker 1: the Republicans have done differently? I mean, you know, we
Speaker 1: have a split Congress that is where action has to occur,
Speaker 1: and both parties bear responsibility. So I have a bit
Speaker 1: of a problem with the focus only on the Democrats
Speaker 1: in this case. Well, he did say though, that you
Speaker 1: know the Trump administration got there, save the president got
Speaker 1: things done? Is he is he suggesting Joe Biden needs
Speaker 1: a better staff? Rick, I think that at this point
Speaker 1: where Joe Biden is, I think starting to chop heads
Speaker 1: and get a new staff is exactly what it is
Speaker 1: UH called for. Just wait till to get through November, right,
Speaker 1: Rick and Genie lead you back here tomorrow on the
Speaker 1: fastest hour in politics. It's great to have everyone back
Speaker 1: together again in a lot of good topics that we
Speaker 1: had to explore tonight. If you showed up late, subscribe
Speaker 1: to the podcast wherever you get your guests. This is
Speaker 1: Bloomberg