WEBVTT - Moelis & Co Vice Chairman Eric Cantor Talks Government Funding Bill

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<v Speaker 1>Bloomberg Audio Studios, podcasts, Radio News.

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<v Speaker 2>And The Savannas this morning speak at Johnson's Uphill Battle.

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<v Speaker 3>Thevik and I talked last night about almost midnight, and

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<v Speaker 3>he said, look, I get it. He said, we understand

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<v Speaker 3>you're in an impossible position. Everybody knows that. Remember, guys,

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<v Speaker 3>we still have just a razor thin margin of Republicans,

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<v Speaker 3>so any bill has to have Democrat votes. They understand

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<v Speaker 3>the situation. They said, it's not directed to you, mister speaker,

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<v Speaker 3>but we don't like this spending. I said, guess what, Fellas,

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<v Speaker 3>I don't either. We got to get this done because

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<v Speaker 3>here's the key. By doing this, we are clearing the decks,

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<v Speaker 3>and we are setting up for Trump to come in

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<v Speaker 3>browing back with the America First Agenda.

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<v Speaker 2>So here's the light. Say's President elect Donald Trump and

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<v Speaker 2>Vice President elect jd Event supposing a bipartisan deal to

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<v Speaker 2>temporarily fund the US government and avoid a shutdown. Right, sing,

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<v Speaker 2>Republicans must get smart and tough. If Democrats threaten to

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<v Speaker 2>shut down the government unless we give them everything they want,

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<v Speaker 2>then call their bluff. Former House Majority Leader Eric Hansich

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<v Speaker 2>and just now for more, Eric and Mornick Good morning.

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<v Speaker 2>How difficult is it going to be to change the

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<v Speaker 2>establishment in Washington.

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<v Speaker 3>D C.

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<v Speaker 4>Well, you know, you're beginning to see I think a

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<v Speaker 4>taste of what is to come over the next two years,

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<v Speaker 4>because this is just a real desire to want to

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<v Speaker 4>you know, sort of clean up shop and to get

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<v Speaker 4>on with a much cleaner, more focused pro growth agenda

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<v Speaker 4>in DC. And you know the problem is, even on

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<v Speaker 4>these spending bills, if Republicans have majorities in both houses,

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<v Speaker 4>which will be the case in January, you still are

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<v Speaker 4>relying on Democrats to get things done given the rules

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<v Speaker 4>in the Senate. And you know when you see the

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<v Speaker 4>activity online from Elon Musk and then the follow up

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<v Speaker 4>from President Trump, you know, it makes it really tough.

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<v Speaker 4>I mean because it's it defies the by partisanship that

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<v Speaker 4>is needed to get things done.

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<v Speaker 2>But spending taxpayers money shouldn't be easy. It should be tough.

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<v Speaker 2>And that's the problem that a lot of people have

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<v Speaker 2>got with this. They'll use technical terms like continuing resolution,

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<v Speaker 2>this is just business as usual. Then it goes through

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<v Speaker 2>all the other things that's stuffed into it, and the

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<v Speaker 2>general public sits there and says, what's this about?

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<v Speaker 4>Right? And I think that's where certainly the objection came

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<v Speaker 4>from from Elon Musk and others to say, wait a minute,

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<v Speaker 4>this was a continuing resolution, which is just a stop

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<v Speaker 4>gap measure. Then let's just get over the hump so

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<v Speaker 4>the government can continue to operate, but let's not do

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<v Speaker 4>anything else. And this is the difficulty when you've got

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<v Speaker 4>a margin the way you do in the House, and

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<v Speaker 4>speak of Johnson's dealing with you need the Democrats to

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<v Speaker 4>help you because you are not enjoying unanimity on the

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<v Speaker 4>part of the Republicans.

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<v Speaker 1>That's the issue that said this was led by Mike Johnson.

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<v Speaker 1>Mike Johnson started the tip for tap by that ten

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<v Speaker 1>billion dollar provision for farmers. Look, there's a bigger issue here,

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<v Speaker 1>which is ultimately some of the bigger conversations about entitlements,

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<v Speaker 1>about certain healthcare issues, about other big policies people aren't

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<v Speaker 1>willing to have in an honest way, how much do

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<v Speaker 1>you think that that ultimately is the questions You've got

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<v Speaker 1>to kind of gussy everything up with all of these

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<v Speaker 1>cute little tricks and get something through to just not

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<v Speaker 1>do anything.

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<v Speaker 4>Well, the discussions that they're having around this Continuing Resolution

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<v Speaker 4>bill are what's called discretionary funding. It is not what

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<v Speaker 4>you're saying. The entitlements and now, as you rightly point to,

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<v Speaker 4>that is the real problem and it's causing disffortunately our

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<v Speaker 4>deficit and the growing debt. There's no question, but President

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<v Speaker 4>Trump has said we're not touching that.

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<v Speaker 1>Now.

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<v Speaker 4>What I hope is with Elon Mosk and Vivek Ramswami

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<v Speaker 4>overseeing this doge effort, although it's not technically part of government,

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<v Speaker 4>it can have a lot to do with the actual

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<v Speaker 4>debate on policy, and I hope they're going to come

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<v Speaker 4>up with something to define the debate and hopefully it'll

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<v Speaker 4>be clean up the way that these entitlements work so

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<v Speaker 4>we can begin to see how we can reform those,

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<v Speaker 4>because that's going to solve our debt and deficit.

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<v Speaker 1>You're at an amazing vantage point understanding how the sausage

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<v Speaker 1>is made, having a lot of contacts, and also seeing

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<v Speaker 1>the business world react and being a part of that.

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<v Speaker 1>And I'm just wondering how much the official that markets

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<v Speaker 1>have been rallying on is jeopardized by the dysfunction of

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<v Speaker 1>trying to fix something that feels very, very broken.

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<v Speaker 4>So what I can tell you at MOLIS We are

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<v Speaker 4>seeing our clients pick up in a big way, the dialogue,

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<v Speaker 4>their deals being dusted off, those that have been put

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<v Speaker 4>on the shelf over the last several years, in fact,

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<v Speaker 4>turning into we've even seen a pickup in the acceleration,

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<v Speaker 4>if you will, of completion of deals. And I think

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<v Speaker 4>it's all about the optimism coming from deregulation, the fact

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<v Speaker 4>that we're going to have an administration that is not

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<v Speaker 4>an adversary to a pro growth agenda into business. And

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<v Speaker 4>I think that just tells you where we've been in

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<v Speaker 4>this country. You know, we have had and suffered a

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<v Speaker 4>negative you know, it has been almost a war on

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<v Speaker 4>a growth agenda over the last four years under Joe Biden.

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<v Speaker 4>And so I think that's ultimately going to avail over

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<v Speaker 4>any doubts about whether Washington in the end will get

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<v Speaker 4>something done, because I still sit here today and say

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<v Speaker 4>they will get something done to fund the government.

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<v Speaker 2>Compare the mood to that in Europe. How different is

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<v Speaker 2>it right now? People have fired up about America into

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<v Speaker 2>next year and beyond, and by people I mean consumers.

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<v Speaker 2>Confidence is up, businesses confidence is up. Compare that to

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<v Speaker 2>Europe right now.

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<v Speaker 4>Amazing. And I spent last week, all week in Europe,

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<v Speaker 4>and it is amazing the difference of being here looking

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<v Speaker 4>at the optimism, the momentum we've got is reflecting in

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<v Speaker 4>the valuations of assets here, and you can see the

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<v Speaker 4>unleashing of not only strategics here, but you know, our

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<v Speaker 4>sponsor clients, you know, everyone is sort of you can

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<v Speaker 4>really feel it in Europe. Everybody's looking here. I mean,

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<v Speaker 4>that's the amazing thing because there is a huge difference

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<v Speaker 4>in valuation between on assets here versus Europe. And you

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<v Speaker 4>would think, well, that would push people to go look

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<v Speaker 4>for bargains over there.

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<v Speaker 2>Uh huh.

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<v Speaker 4>You've got investors and folks looking here. It's everyone's coming

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<v Speaker 4>here is striking. And now look their political situation also

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<v Speaker 4>is now the additional somebling blocked that they've got to

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<v Speaker 4>deal with, which doesn't bode well.

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<v Speaker 2>Yeah, whatever the find looks like down in Washington, d C.

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<v Speaker 2>I think it should be very clear on a relative basis,

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<v Speaker 2>the mess is elsewhere Canada, Germany, France, the list goes

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<v Speaker 2>on and on and on when it comes to political instability.

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<v Speaker 1>And it's not necessarily because those politicians are that much

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<v Speaker 1>worse than the US, but it's that the US corporate

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<v Speaker 1>sector has managed to outperform again and again and innovate,

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<v Speaker 1>and ultimately that's what it's going to have to come

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<v Speaker 1>back to.

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<v Speaker 4>I'll always say this though in our country, you look

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<v Speaker 4>at the size of government as a percentage of GDP,

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<v Speaker 4>we are much much smaller, even though we as a

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<v Speaker 4>limited governor conservative. You compare that too through the EU

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<v Speaker 4>and they're fifty.

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<v Speaker 2>Percent, France pushing sixty. Eric is good to see it, buddy,

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<v Speaker 2>Great to be all those to you as well. Eric

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<v Speaker 2>Canter there, the former House Charcy leader