Speaker 1: Now from our nation's capital. This is Floomberg's sound on
Speaker 1: Today's agreement is a good first step to ending the
Speaker 1: persistent in action to gun violence. Time is difference Floomberg's
Speaker 1: sound on politics, policy, and perspective from DC's top name.
Speaker 1: On the morning of January six, President Donald Trump's intention
Speaker 1: was to remain president of the United States. Violence was
Speaker 1: no accident. It represents Trump's last Sat Floomberg sound on
Speaker 1: with Joe Matthew on Bloomberg Radio. Senators strike a deal
Speaker 1: on guns. Welcome to the fastest hour in politics with
Speaker 1: details today on the framework just weeks after the shooting
Speaker 1: in Uvaldi, and as the House committee investigating January six
Speaker 1: builds its case against Donald Trump, will discuss both with
Speaker 1: Congressman Stephen Lynch, Democrat from Massa choose it's member of
Speaker 1: the Gun Violence Prevention Task Force. Later, stocks tumble on
Speaker 1: the latest inflation shock. President Biden says he'd like to
Speaker 1: pop someone, and we'll talk about the messaging on prices
Speaker 1: with Greg Valier, a g F Investments our panel today
Speaker 1: Bloomberg Politics contributor Democratic analyst Genie Chanzano along with Republican
Speaker 1: strategist Doug High, former Communications director at the Republican National Committee.
Speaker 1: We've got a great hour ahead, but first the damage done.
Speaker 1: An update on the markets. There's nowhere to hide today.
Speaker 1: Let's go a bit deeper with Bloomberg Equities reporter Jess
Speaker 1: Meant and Jess thanks for being here on a busy
Speaker 1: after hours. There are a lot of broken charts out there.
Speaker 1: How damaging was today From a technical standpoint, it was
Speaker 1: very damaging. One of the key levels that technicians were
Speaker 1: keeping a close eye on was thirty eight ten, which
Speaker 1: the SMP five hundred broke today, and that was the
Speaker 1: intro day low on me when we had that big
Speaker 1: sell off. At that point, the SMP five hundred had
Speaker 1: dropped more than intra day from its January third high
Speaker 1: at that session, but paired back losses and did not
Speaker 1: officially close in the bear market that day. But today
Speaker 1: it did and it was one of the most powerful
Speaker 1: bull market runs that we've ever seen. Wow, So it's
Speaker 1: to sell everything market here. Even Energy was lower today, Huh,
Speaker 1: everything was and interesting with energy. I spoke with a
Speaker 1: number of strategies to get a sense of why energy
Speaker 1: was one of the among leading to groups in the
Speaker 1: sectors in the SMP five hundred, that was lower if
Speaker 1: that was something that was tied to global growth concerns
Speaker 1: and recessionary fears. But something that did come up was
Speaker 1: as far as when I was talking with technicians, one
Speaker 1: of those things where energy has been the best performing
Speaker 1: sector by far this year, and it's a sign that
Speaker 1: potentially investors were starting to sell even some of their winners,
Speaker 1: in liquidating some of those positions to raise some of
Speaker 1: their cash levels. And that's something that has been a
Speaker 1: bit missing this year in the sell off when you're
Speaker 1: looking at the SMP five versus some of these say
Speaker 1: more tech growth oriented indexes like the NASTAC and then
Speaker 1: it's like one because a lot of people say when
Speaker 1: it comes to Apple some of these other really big
Speaker 1: favorites that people don't want to go off. We saw
Speaker 1: signs of those stocks cracking in the last month, and
Speaker 1: again maybe when you're looking at energy some of those
Speaker 1: signs as well. Interesting this is all about a recalibration,
Speaker 1: right that that that inflation data on Friday recalibrated the
Speaker 1: expectation for the FED. Now we're talking seventy basis points again,
Speaker 1: maybe even more right the Wall Street Journal journal pointing
Speaker 1: out that we might see a potential surprise move of
Speaker 1: seventy five basis points from the Fed on Wednesday. And
Speaker 1: a lot of it has to do, especially when we're
Speaker 1: looking at the stock market, what's going on with the
Speaker 1: bond market, when you're looking at the US tenure treasury
Speaker 1: yield spiking again about three point one per cent, and
Speaker 1: just the speed in which that it has moved so quickly.
Speaker 1: It's really going to pressure the stock market and enforcing
Speaker 1: stocks and investors to recalibrate their expectations as far as
Speaker 1: what that means for valuations, corporate earnings, and obviously the
Speaker 1: Fed's trajectory with the economy analysis. Jess, great to have you.
Speaker 1: Thank you for the insights. Jess metten with us getting
Speaker 1: things rolling on the fastest hour in politics, My god,
Speaker 1: that was something to watch. Meantime, here inside the bubble,
Speaker 1: Senate Majority Leader Chuck Schumer says he will bring a
Speaker 1: gun bill to the floor as soon as it's finished.
Speaker 1: The President says he's going to sign it. He put
Speaker 1: a statement out yesterday after negotiators in the Senate announced
Speaker 1: the framework for a gun safety bill. It includes what
Speaker 1: we've been talking about, a red flag incentive for states,
Speaker 1: more comprehensive background check, says we learned as well over
Speaker 1: the weekend for people under twenty one who want to
Speaker 1: buy a gun, White House calling it an historic agreement.
Speaker 1: Today Otherwise, we've told you as well, lawmakers in the
Speaker 1: House have been working on much more strict legislation, further
Speaker 1: reaching that includes hiking the age to buy an assault
Speaker 1: rifle to one, which was approved by a pretty wide
Speaker 1: majority of people in a series of polls conducted since Valdi. Now.
Speaker 1: Congressman Stephen Lynch, a Democrat from Massachusetts Boston, mass who
Speaker 1: serves on the Gun Violence Vention Task Force, urged his
Speaker 1: colleagues in committee last week as they were marking up
Speaker 1: those bills to make that law. Here, he is, I
Speaker 1: respect my colleagues rights to defend the Second Amendment, but
Speaker 1: I will note when when in defending the Second Amendment,
Speaker 1: you have to go to military experts and battlefield commanders
Speaker 1: for advice on how to protect our kids while they're
Speaker 1: in school. We got a problem. We've got a problem,
Speaker 1: Congressman Lynch joins us now on Bloomberg Radio. It's great
Speaker 1: to have you, Congressman, greetings to South Beat. Does the
Speaker 1: Senate bill go far enough? Would you vote for it. Well, Joe,
Speaker 1: that's that's the that's the dilemma. Right now. We have
Speaker 1: a framework, but there there is no language yet, there's
Speaker 1: no text. So I understand that that both sides. There
Speaker 1: were ten Republican members and ten UH Democratic members who
Speaker 1: agreed to a basic framework. But it's an agreement on principles,
Speaker 1: and so you know, as you know, the the the
Speaker 1: devil is in the details, and so when we get
Speaker 1: down to actually putting pent to paper and getting those
Speaker 1: provisions down, then then we'll be able to be a
Speaker 1: better judge of it. But look, I don't want to
Speaker 1: I don't want to discourage them. I am glad that
Speaker 1: they are coming to a framework. I am glad what
Speaker 1: we that we're having progress in the Senate, and UH
Speaker 1: I look forward to supporting UH that bill. Of course,
Speaker 1: we we we think Moore is needed as opposed to
Speaker 1: some of our other colleagues. But but that's what legislation
Speaker 1: is about. It's about compromise. So let's see what we
Speaker 1: can do to make this make Americans safer, make these
Speaker 1: kids in school safer. That's that's the end goal for
Speaker 1: all of us here. You recently quoted the new York
Speaker 1: Times a report that found that if the proposals being
Speaker 1: considered in Congress had been lost, since four gunmen younger
Speaker 1: than twenty one would have been blocked from buying the
Speaker 1: rifles they used in mass shootings. The Senate bill, as
Speaker 1: I mentioned, is not is the age for buying a
Speaker 1: gun the way the House does, but will it help
Speaker 1: to have background checks that include juvenile records as this
Speaker 1: apparently will include. Do you like that idea? Well? The
Speaker 1: the idea is that, you know, as as what happened
Speaker 1: in Evaldi, when the kid turns eighteen, that should not
Speaker 1: give him, uh, the the unmitigated right to to own
Speaker 1: a an assault weapon. Right. There should be something else
Speaker 1: that is required there. So I think the Senate agrees
Speaker 1: with us on that. You know, how much added protection
Speaker 1: do we need? I think it is wildly popular in
Speaker 1: the you know, the general population, I think especially among
Speaker 1: those who have eighteen year olds, and uh, you know,
Speaker 1: they recognized the need for more maturity there, and uh,
Speaker 1: you know, I think that's that's the point we can
Speaker 1: agree on, and let's let's sit down and figure out
Speaker 1: what what restrictions are reasonable under the circumstances. Massachusetts past
Speaker 1: a red flag law inen. I was there. I remember
Speaker 1: the debate. It was surprisingly protracted. People might not assume
Speaker 1: for liberal so called Massachusetts. But reports say that since
Speaker 1: then the order has not been used often, and when
Speaker 1: it's used, it's actually been police more often than family
Speaker 1: members or spouses. Has has the law health? Has it
Speaker 1: made a difference in your state, Congressman, I think at
Speaker 1: this point it would just be anecdotal. So in some
Speaker 1: cases we do recognize that, you know, it's it's tough
Speaker 1: to prove a crime, a crime that was not committed, right,
Speaker 1: It's it's tough to prove, you know, the negative. So
Speaker 1: we think that there were there were many instances of
Speaker 1: a bad situation being averted by the removal of a
Speaker 1: gun from from a home. But again it's it's not
Speaker 1: it's not as widespread as as we thought might be
Speaker 1: the case. But there are instances where you know, families
Speaker 1: will come forward or police will, uh will intervene to
Speaker 1: say that an individual should not, under their current condition,
Speaker 1: should not have access to a firearm, and it's it's
Speaker 1: adjudicated in this case so that you have an impartial
Speaker 1: judge recognizing recognizing, you know, the Second Amendment as well Yeah,
Speaker 1: what happens from here. Do you have a sense of
Speaker 1: there will there be negotiations with the House or will
Speaker 1: you essentially get a product from the Senate that you
Speaker 1: need to decide up or down on. Well, Uh, there's
Speaker 1: always one for negotiation. And because you're pretty far apart
Speaker 1: in your versions here, obviously they are. They are. But
Speaker 1: but I think either either our Senate colleagues Democratic Senate
Speaker 1: colleagues will carry some of our initiatives forward in those
Speaker 1: negotiations with their Republican colleagues, or there may be a
Speaker 1: requirement for for a conference of some sort or some
Speaker 1: negotiations between the Senate and the House. But again, I
Speaker 1: am encouraged that there is this framework and we do
Speaker 1: seem to be moving forward. This gives you a sense
Speaker 1: of how fresh this is. As we discussed it with
Speaker 1: Congressman Stephen Lynch from Massachusetts on Bloomberg Sound On, I
Speaker 1: want to ask you about the January six Committee while
Speaker 1: you're here quickly. Congressman had its second hearing today. We
Speaker 1: heard at length today from former Attorney General Bill Barr,
Speaker 1: along with a number of other top ranking White House officials,
Speaker 1: including the president's former president's daughter. Uh. They described repeated
Speaker 1: attempts to tell Donald Trump that he had lost the
Speaker 1: election in the day of In days following, listen to
Speaker 1: Bill barr and testimony today, I was somewhat tomorrow ours
Speaker 1: because I thought, boy, if he really believes this stuff,
Speaker 1: he has you know, lost contact with with He's become
Speaker 1: detached from reality, detached from reality. This of course led
Speaker 1: to Bill Barr's departure Congressman. This committee is bringing forward
Speaker 1: some very troubling allegations. We're told that there is evidence
Speaker 1: that will show even worse as they begin to connect
Speaker 1: the dots that the president essentially attempted a coup. Is
Speaker 1: anything going to come from these hearings beyond trying to
Speaker 1: set the record straight and set history straight. At some
Speaker 1: point will there be charges? So what I'm anticipating, and
Speaker 1: this is just me from from reviewing the evidence, is
Speaker 1: that there will be I think there will be based
Speaker 1: on all of the evidence, and we have more evidence
Speaker 1: to come that hasn't been made public. Um that a
Speaker 1: criminal referral will be made and that the Department of
Speaker 1: Justice will have to make a decision at that point,
Speaker 1: but they will have ample evidence and uh and again
Speaker 1: it won't be a you won't be a congressional effort.
Speaker 1: It will be the Justice Department that takes that up.
Speaker 1: Should Kevin McCarthy that is the main purpose there, understood?
Speaker 1: Do you think they should refer as I mean they
Speaker 1: did already for the minority leader. Should Kevin McCarthy have
Speaker 1: been charged for refusing to cooperate? In your opinion? I'm
Speaker 1: not quite sure. I didn't dive into that in terms of,
Speaker 1: you know what what he's legally bounding? Do Um? He
Speaker 1: does have, you know, some rights against self incrimination. Um,
Speaker 1: But um, I think it was the right thing to
Speaker 1: do to come and cooperate and testify. But um, talking
Speaker 1: about busting a lot of conventions here these days, I
Speaker 1: don't have to tell you that as someone who's been
Speaker 1: on Capitol Hill for a minute. It should Donald Trump
Speaker 1: himself be charged? Uh, that's what the criminal referral would
Speaker 1: be for for him specifically. You mean, yeah, yeah, he's
Speaker 1: behind us? All right, Well, there could be if it's
Speaker 1: a conspiracy, A lot of names. I'm curious what you
Speaker 1: think it could be. It could be that could be.
Speaker 1: Let's let's let the rest of the evidence come out.
Speaker 1: I know there are some members that came forward and
Speaker 1: asked for for pardons as well. That that's surely an
Speaker 1: indication of at least their own belief that they might
Speaker 1: be guilty of something. Did you know that before they
Speaker 1: announced that last week? Had you heard that before I did? Yeah? Yeah,
Speaker 1: so that's true. Then we've been arguing about this for
Speaker 1: the last four or five days as to whether it happened,
Speaker 1: and you know, I know the committee is gonna do.
Speaker 1: Who are not remains to be seen, but that that's
Speaker 1: what I was told. Fascinating five to six lawmakers, Congressman.
Speaker 1: I'm not sure if it's as high as six, but
Speaker 1: there were several. I saw the price for a gallon
Speaker 1: of gasoline in Massachusetts today top five dollars, just like
Speaker 1: where I am here in Washington it was five dollars
Speaker 1: and four tenths or something like that. I don't know
Speaker 1: what you're paying in the city, Congressman. But how worried
Speaker 1: are you this that this is actually the story that
Speaker 1: is making headlines as opposed to what's happening in that
Speaker 1: committee room. Yeah, that that is a concern. Um. It
Speaker 1: seems that you know, Ukraine has dropped off the the uh,
Speaker 1: you know, the front pages as well to a certain extent,
Speaker 1: and uh, people are looking at the price of basic goods.
Speaker 1: You know, inflation is h is uh the most regressive
Speaker 1: tax there is. So it's hitting the people worse who
Speaker 1: can LEAs afford it, right, Um so yeah, I think
Speaker 1: I think people are seeing that upfront every day in
Speaker 1: their in their lives, and and it's occupying a big
Speaker 1: part of their worry. It's getting to be almost, uh
Speaker 1: a comedy routine though, with the way this is being covered,
Speaker 1: isn't it, with every single day asking about what are
Speaker 1: you gonna do to beat inflation? If this is a
Speaker 1: global phenomenon, are we not overstating the role that Washington
Speaker 1: plays and controlling consumer prices, particularly energy prices. I know
Speaker 1: that's its own conversation, but this is like, these are
Speaker 1: long term trends, no, right, you need you know, you
Speaker 1: do not replace the oil supply that was taken off
Speaker 1: the market with Russia's invasion of Ukraine, Um, any time quickly. Uh.
Speaker 1: I also think that as as well meaning as some
Speaker 1: of the measures we've put forward, and that involves transition,
Speaker 1: shipping and things like that, I don't think there's any
Speaker 1: quick six here that we're gonna be in for a
Speaker 1: slow slog here, and if history is any indicator, it
Speaker 1: takes a while to turn this around, and and I
Speaker 1: think that will be true in this case. I hope
Speaker 1: you've had a chance to get down to Sullivan's, uh
Speaker 1: for a hot dog, and I hope your summer is
Speaker 1: going well at Congressman, thank you for coming to talk
Speaker 1: to us. Thank you, Joe, thanks for having me on.
Speaker 1: It's a pleasure here on Bloomberg Sound On, we assemble
Speaker 1: our panel Bloomberg Politics contributors Genie Schanzano Doug Hides with
Speaker 1: us as well, Republican strategist, former deputy chief of staff
Speaker 1: to Eric Cander, former communications director for the r n CE.
Speaker 1: Doug Greetings, welcome back, and Genie, I hope you had
Speaker 1: a great weekend as we consider. I don't even know
Speaker 1: where to begin after everything we just covered with Congressman Lynch,
Speaker 1: but I think we'll just do this in order. And
Speaker 1: that's a deal. On guns, Genie, this is the incremental
Speaker 1: stuff we've been talking about, but it looks like it's
Speaker 1: actually going to happen, and maybe even a bit more
Speaker 1: on the background checks that that you might not have expected.
Speaker 1: Does this sound like success to you? It sounds like
Speaker 1: something to be optimistic about and hopeful about. But this
Speaker 1: is far from a done deal. And I think the
Speaker 1: Congressman just stressed what what everybody in Washington is saying,
Speaker 1: which is we don't have language yet. Well, you know me,
Speaker 1: I'm a little bit of a skeptic, but you know,
Speaker 1: well yeah, and and so the question is going to be,
Speaker 1: you know, what does that language look like? How long
Speaker 1: does this take? They supposedly want to get this done
Speaker 1: before July four, which is a challenge but doable. But
Speaker 1: don't forget and I keep mentioning this to people with
Speaker 1: too may mansion. It was the language that destroyed that
Speaker 1: deal because once the language came out, people were able
Speaker 1: to look at it, pick at it, and that's what
Speaker 1: drove senators away from supporting it. And I don't think
Speaker 1: they did that fairly. So the language is going to
Speaker 1: matter an awful lot because you're a far cry from
Speaker 1: that when you're talking framework. So I am hopeful it
Speaker 1: would be wonderful if they could push this through, but
Speaker 1: there's still a ways to go. Doug, you've been in
Speaker 1: the room when the bill writing happens, when this process arts.
Speaker 1: What are your thoughts on how many changes could happen.
Speaker 1: Are you skeptical like Genie? Look, I've been hopeful and
Speaker 1: skeptical the entire time. Hopeful that this time indeed is different. Um,
Speaker 1: which we've we've heard before but seems to be true,
Speaker 1: and also skeptical because the old adagees is very true.
Speaker 1: Here the devil is in the details. And this is
Speaker 1: where we're getting at right now. Is that detail part
Speaker 1: where you're putting legislative text together. This is where disagreements happen.
Speaker 1: This is where agreements that happen on a Monday disagreements
Speaker 1: on Tuesday, and that as well. Um. And so you know,
Speaker 1: we have a ways to go. But you know, obviously
Speaker 1: if if this is a marathon not a sprint, you
Speaker 1: know we're at least at the thirteen point one mile
Speaker 1: mark and you know, hopefully we can get to the
Speaker 1: finish line. The President has largely allowed this to happen, Genie,
Speaker 1: And it came up a few times at the White
Speaker 1: House Press briefing today whether he was going to become
Speaker 1: more directly involved and whether he would actually engage with
Speaker 1: Republican is not just the Democrats who are part of this.
Speaker 1: We know he's met with with with Chris Murphy, the
Speaker 1: Democrat from Connecticut. But is it time to stand up
Speaker 1: and say, you know, I can influence this, here's what
Speaker 1: I'd like to see. Um. I think he should do
Speaker 1: what he's been doing, which has let these senators work
Speaker 1: this out. If they need him to step in, I
Speaker 1: think he absolutely should do that. But at this point
Speaker 1: they seem to have forward movement, so I wouldn't want
Speaker 1: him to step in into that doesn't. And you know, Joe,
Speaker 1: you mentioned something critically important to the congressman about the
Speaker 1: red flag laws in Massachusetts, and I remember this, Well,
Speaker 1: that's what we mean. You know, in theory, these sound
Speaker 1: very good, but when you get to those details that
Speaker 1: Doug was just talking about, that's where the rubber hits
Speaker 1: the road. It can be very tough for people to
Speaker 1: sign on. And by the way, not just Republicans. You've
Speaker 1: got to hold all the Democrats. We've got Warnock hass
Speaker 1: and we've got Cortez master O'Kelly. These people in purple
Speaker 1: states have voters they need who feel very strongly about
Speaker 1: the Second Amendment. And I'm not saying they're going to
Speaker 1: vote against it, but you've got to keep them on
Speaker 1: board as well. Doug when you consider the idea of
Speaker 1: you know, they couldn't get a federal red flag together,
Speaker 1: we're incentivizing states under the language in this legislation, or
Speaker 1: I guess I can't even say that, but not under
Speaker 1: the handshake language going forward here, how many red states
Speaker 1: are going to take the money to adopt read state laws,
Speaker 1: red flag laws. The short answer, the short answers, we
Speaker 1: don't know. UM. You know, what we've often seen is,
Speaker 1: you know, money is available to states for various purposes,
Speaker 1: and some some states take the money, some states don't.
Speaker 1: It sometimes is remarkable when Republican governor UM expands a
Speaker 1: you know, medicare for instance, UM, where we've seen more
Speaker 1: Republican governors accepting that money where they haven't in the past.
Speaker 1: But at this point, we just don't know. And you know,
Speaker 1: this is I think emphasizes what's really been a challenge,
Speaker 1: not just on this issue, but but on so many
Speaker 1: issues of letting the perfect be the enemy of the good,
Speaker 1: and so often we hear, whether it's on this bill
Speaker 1: or on other issues, the answer that this isn't the solution.
Speaker 1: We all We often then lose sight of trying to
Speaker 1: find a solution because something isn't the final solution, and
Speaker 1: if if we can't get to the perfect, let's accept
Speaker 1: some good. And it's one of the reasons why it's
Speaker 1: been so significant that leadership has stayed out of it.
Speaker 1: Mitch McConnell's not involved in this process. Schumer is not
Speaker 1: involved in this process. And that's a good thing in
Speaker 1: this case. And behold, there's something to show for it.
Speaker 1: I'm just curious, though, Doug, where the red flag law
Speaker 1: kind of falls on the partisan scale here. Is that
Speaker 1: seen as you know, sort of conte damaging gun control
Speaker 1: in in the conservative sort of Second Amendment world, or
Speaker 1: is that something after this series of shootings that everyone
Speaker 1: seems to be kind of open to. Well more people
Speaker 1: were certainly open to it. And as Congressman said, you know,
Speaker 1: it's hard to prove a crime before it has happened,
Speaker 1: and you know that that's a legitimate issue as as
Speaker 1: we move forward and how to you know, consider red
Speaker 1: flag laws and and you know, warnings and so forth.
Speaker 1: Starting to see some members change on this, some minds
Speaker 1: on the Republican side, but it's clearly not universal. Do
Speaker 1: you need the idea of going through juvenile criminal records
Speaker 1: and mental health records when applicable in a background check,
Speaker 1: gives you more hope than you had in the effectiveness
Speaker 1: of this legislation or not it does. I think for
Speaker 1: me that a proportion is probably the biggest surprise that
Speaker 1: there was, you know, this bipartisan support for that, and
Speaker 1: it would be profoundly important if they were able to
Speaker 1: push it through. But I think there is sort of
Speaker 1: a through line in both of these. You know, you
Speaker 1: look at the incentives for red flag laws, you look
Speaker 1: at these more extended background checks with mental health checks
Speaker 1: and other things for younger people under twenty one, and
Speaker 1: there are real and serious and profound questions that people
Speaker 1: have about the denial of due process as it pertains
Speaker 1: to red flags, and then as it pertains to the
Speaker 1: juvenile records, to privacy. So those are the kinds of
Speaker 1: nitty gritty things that they're going to have to address,
Speaker 1: because people to rightly, so very seriously that we have
Speaker 1: due process in this country, we have a right to
Speaker 1: privacy language, yeah when it comes to healthcare, mental health
Speaker 1: in those things, and so you know, it's one thing
Speaker 1: to in you know, in a thirty thousand foot level,
Speaker 1: say yeah, I want a red flag law. When you
Speaker 1: look at how it works, people do have serious questions. Jennie,
Speaker 1: how about the boyfriend loophole? Though we only have thirty seconds,
Speaker 1: but that is actually something that's not really come up
Speaker 1: in this conversation nationally. That gets to the idea of
Speaker 1: domestic violence, not just school shootings. Yeah, and again really
Speaker 1: critically important a way to stop this, but also raises
Speaker 1: questions about due process and about people being wrongly accused.
Speaker 1: Those are real concerns people have just forever complicated. Great
Speaker 1: conversation though, and great to have Doug High with us.
Speaker 1: Jennie Chanzana with us for the hour. Our panel here
Speaker 1: on Bloomberg Sound On. I'm Joe Matthew in Washington. Coming up.
Speaker 1: Inflation is a bear for the White House. Will gauge
Speaker 1: the level of panic ahead with Greg Valier. This is
Speaker 1: Bloomberg MH. So many blockbusters this week, writes Gregg Valiere.
Speaker 1: The January six committee going for the jugular gun reform
Speaker 1: bill finally moving. Kind of sounds like this hour so
Speaker 1: far at an Iranian nuclear deal apparently dead. But the
Speaker 1: big story, he writes, is the Washington panic over inflation,
Speaker 1: which may lead the Federal Reserve to consider more aggressive tightening.
Speaker 1: That's actually where we started this hour, of course, talking
Speaker 1: about that with Jess. The market reaction today has been
Speaker 1: brutal at the gasoline price spike. I'm going down the
Speaker 1: note from Greg Valiere and the increasingly angry president. You
Speaker 1: heard him in Los Angeles on Friday. He's at the
Speaker 1: Port of l A. Remember we talked to the director
Speaker 1: of the port a little while after about shipping industry
Speaker 1: profits and he got really upset. Listen to Joe Biden
Speaker 1: at the port. Every once in a while, something that
Speaker 1: you learned makes viscerally angry. If you had the person
Speaker 1: in front of you, you'd want to pop him. No,
Speaker 1: I really mean it. Dre are nine nine major ocean
Speaker 1: line shipping companies that shipped from Asia to the United States.
Speaker 1: Nine they formed three consortium. These companies have raised their
Speaker 1: prices by as much as one thousand percent, and he
Speaker 1: wants to pop him. It's like a Y I oughta um.
Speaker 1: Greg Valier always great to have you. Do you think
Speaker 1: that was in the prompter or was that was that spontaneous? No,
Speaker 1: it's spontaneous. That is why Joe they don't let him
Speaker 1: do very many press conferences because when he's unscripted. Who
Speaker 1: knows what he's gonna say. Talked about ex on Mobile
Speaker 1: as well, is that they're making more money than God,
Speaker 1: pay your fair share and so forth. I mean, is
Speaker 1: this kind of what it's come to? And I got
Speaker 1: to this a little bit earlier with Congressman Lynch Greg
Speaker 1: You know, we're all it's part partly on us, right,
Speaker 1: We're asking them every single day, what are you gonna
Speaker 1: do about inflation? When the White House has kind of
Speaker 1: used every tool it's got, right, maybe there's something I'm
Speaker 1: not thinking of. I guess there's China tariffs. They've deferred
Speaker 1: to the FED argue with their late or not. But
Speaker 1: my goodness that you know what else is Joe Biden
Speaker 1: going to say? At this point? The cupboard is pretty
Speaker 1: bare when it comes to policies. There's a leak this
Speaker 1: evening that they may revive their idea of a gasoline
Speaker 1: price rebate. I wouldn't rule it out. I mean, it's
Speaker 1: going to cost money, but I think people might like
Speaker 1: seeing that. But there's not a lot that he can do.
Speaker 1: And to rely on the FED is ironic because an
Speaker 1: incumbent president doesn't want to have a FED raising rates
Speaker 1: and that's what we're going to see. Well, that's for sure.
Speaker 1: We're well on our way there, of course, But what
Speaker 1: do you make of the messaging. It's been very deliberate lately.
Speaker 1: Defer to the FED. Talk about the independence of the Fed.
Speaker 1: Karine John Fare was doing that just an hour ago
Speaker 1: in the briefing room. And then remind everybody that you know,
Speaker 1: you've got this China competes bill, you've got the chip
Speaker 1: ACKed waiting, and you've got ideas from build back better
Speaker 1: that might be good to lower prescription drug prices and
Speaker 1: so forth. But that's going to be the answer tomorrow,
Speaker 1: next week and in the month after right, and before
Speaker 1: you know it, Joe, we're going to have the July
Speaker 1: four break, and then there's a five week August break
Speaker 1: going into early September, and then there's the election, and
Speaker 1: I think there's not a lot of time left to
Speaker 1: get much done. I think that relying on the FED
Speaker 1: is risky because the Fed is going to do some
Speaker 1: real damage to interest sensitive things. Does the gunbelt chock
Speaker 1: up to be a win if this thing gets past, Yeah,
Speaker 1: it does. I think he could claim it's better than
Speaker 1: nothing we've done something. Of course, that's going to take
Speaker 1: another week or two before it gets done. But yeah,
Speaker 1: he desperately needs a victory and this would be one.
Speaker 1: Let me ask you this, Does a trip to Saudi
Speaker 1: Arabia end up being a win if it actually lowers
Speaker 1: oil prices? That's unclear. I think he's got two constituents
Speaker 1: that won't be happy, won't his people who don't like
Speaker 1: the way Saudis the Saudi's treat people in terms of
Speaker 1: human rights. The others the environmentalists who don't like fossil fuels,
Speaker 1: And Joe Biden is going to go to Saudi Arabia
Speaker 1: trying to get more fossil fuels. Does that angry talk
Speaker 1: work the you know show, show him you're mad? Mad
Speaker 1: as hell? I'm not going to take it anymore? Or
Speaker 1: is is that why we're in the thirties for approval ratings.
Speaker 1: I'm not sure it's constructive. I understand that he's frustrated,
Speaker 1: and frankly, Joe, I think that he has to be
Speaker 1: thinking about only one term. I've been writing this. It's controversial,
Speaker 1: but you were ahead of the New York Times on this. Yes,
Speaker 1: as I pointed out to people today. But I think
Speaker 1: that there's there's some there there. I think that, well,
Speaker 1: you went further than that, you said maybe not finish
Speaker 1: this term. Uh, let's let's just jump right to it.
Speaker 1: What do you what's making you think that? I think
Speaker 1: there's going to be a show acking on November eight.
Speaker 1: The Democrats are going to take terrible losses in the House.
Speaker 1: They'll lose the House and losses in the Senate as well.
Speaker 1: And I think that the Democrats are seeing in Joe
Speaker 1: Biden somebody who has lost a couple of miles off
Speaker 1: his fastball. I don't. I'm not a doctor. I can't
Speaker 1: say anything for sure, but I think he's not quite
Speaker 1: as sharp as he was. That's becoming a very common theme. Uh.
Speaker 1: And he hasn't been anything done. But that means a
Speaker 1: resignation or how do you mean not not not capable
Speaker 1: serving the rest of this term. I think that he
Speaker 1: may be in a position where he would step down,
Speaker 1: maybe after after Thanksgiving. I don't. I don't rule that
Speaker 1: out at all. I will say for I feel quite
Speaker 1: strongly that he will not seek a second term. This
Speaker 1: is coming from Greg Valier with us today on Bloomberg.
Speaker 1: This has been quite an hour, I'll tell you. Um
Speaker 1: with regard to the gun legislation, you said, a couple
Speaker 1: of weeks, is anything in the pipe? After that, I
Speaker 1: mentioned the rem and some build back better. We started
Speaker 1: hearing the word reconciliation a little more often. The last
Speaker 1: couple of weeks, do they go for it? Uh? They may.
Speaker 1: The key if you've you've heard this before, The key
Speaker 1: is Joe Manchin and we'll see if he's willing to
Speaker 1: do anything on build back better. Don't you love being
Speaker 1: asked that question over and over and over again by
Speaker 1: people like me? He said, Well, you could play the
Speaker 1: tape back from a year ago. It's the same exactly.
Speaker 1: There might be something I can't you can't rule it up.
Speaker 1: I think I'm intrigued by this gas gasoline rebate idea
Speaker 1: that might gain some traction in the next few days.
Speaker 1: But again, the cupboard is pretty bare. January six Committee.
Speaker 1: I have to admit, Greg, I felt like it was
Speaker 1: more effective today in in the way the tape was edited,
Speaker 1: in the way things were rolled out. Maybe they weren't
Speaker 1: trying as hard. I'm not sure exactly, but boy, hearing
Speaker 1: these top ranking Trump officials in their own words has
Speaker 1: been pretty damaging. A devastating day for Donald Trump. Uh.
Speaker 1: William Barr certainly made it quite clear what he said
Speaker 1: he thought Trump maybe was an alternate universe. Uh. And
Speaker 1: I think there was the other story that probably will
Speaker 1: get a lot of play in the next day or so,
Speaker 1: is that Trump's people raised a lot of money based
Speaker 1: on they did. We're gonna talk about that next try
Speaker 1: two and fifty million dollars. Great talk with Greg Valier.
Speaker 1: We appreciated Greg a g F Investments. Will reassemble the
Speaker 1: panel next. I'm Joe Matthew. This is Bloomberg. You're listening
Speaker 1: to Bloomberg. You sound on with Joe Matthew on Bloomberg Radio.
Speaker 1: And the redhead on the terminal not what this White
Speaker 1: House wants to see. In following our conversation just now
Speaker 1: with Greg Valier, you might want to pop someone inflation
Speaker 1: data likely to push FED to consider seventy fits on Wednesday.
Speaker 1: This was supposed to be further down the road, right.
Speaker 1: It's based on a lot of the conversations we were
Speaker 1: having beginning with surveillance this morning. We'll talk more about
Speaker 1: out that, of course coming up on daybreak. Asia. I'm
Speaker 1: Joe Matthew and Washington. This is Bloomberg. Sound on as
Speaker 1: we reassemble our panel today. The top witness set to
Speaker 1: testify before the the January six Committee today was a
Speaker 1: no show, as you may have heard, and he had well,
Speaker 1: he had a really good excuse. Donald Trump's former campaign manager,
Speaker 1: Bill Stepien's wife went into labor this morning. The chairman
Speaker 1: of the committee, Tho, says he was in town this.
Speaker 1: Stepien was prepared to answer the panel's questions before life happened.
Speaker 1: But it was amazing to see the plan B come
Speaker 1: together or I'm not sure was this the backup plan
Speaker 1: on the behalf of the committee. I mean, the committee
Speaker 1: opens at ten thirty this morning. They put it back
Speaker 1: half an hour. They open with video of Stepian from
Speaker 1: his three hours of testimony, edited carefully into bites and
Speaker 1: in some cases strung together with cuts of other people
Speaker 1: testifying to create a story all on its own, like
Speaker 1: a documentary. There was no narration from lawmakers or anybody else,
Speaker 1: so you hear the questions from the lawyers, the answers
Speaker 1: from these top ranking Trump officials. Was this James Scoldstone,
Speaker 1: the former president of ABC News. We heard about He's
Speaker 1: hired by the panel to help produce content for the hearings.
Speaker 1: I thought that was for prime time, but I don't know.
Speaker 1: I wonder, and today they focused on what was going
Speaker 1: on in the Trump White House on election night, how
Speaker 1: the mood changed when Arizona was called for Joe Biden. Remember,
Speaker 1: of course it was called by Fox. And the conflicting
Speaker 1: advice that the president received from his campaign manager, from
Speaker 1: Jared Kushner, and as we learned today from an intoxicated
Speaker 1: Rudy Giuliani, that's direct from the committee. Jason Miller confirmed
Speaker 1: Giuliani was drinking and intoxicated that night. It went late,
Speaker 1: of course, after midnight, and Rudy Giuliani got some time
Speaker 1: with the presidents. Let's listen. There are suggestions by I
Speaker 1: believe it was Marrior Giuliani to go and declare victory
Speaker 1: and say that we wanted out right. Was arts too
Speaker 1: early to be making any calls like that, UM. Ballots,
Speaker 1: ballots were still being counted, ballots were still going to
Speaker 1: be counted for days, UM, And it was far too
Speaker 1: early to be making any properation like that. I remember
Speaker 1: saying that the best of my memory, and I was
Speaker 1: saying that we should not go and declare victory until
Speaker 1: we had a better sense of the numbers. Okay, can
Speaker 1: you be more specific about that conversation, in particular what
Speaker 1: Mayor Giuliani said, your response, and then anybody else in
Speaker 1: the rooms response. I think effectively, Mayor Giuliani was saying,
Speaker 1: we wanted they're stealing it from us where all the
Speaker 1: votes come from. We need to go say that we won,
Speaker 1: and essentially that anyone who didn't agree with that position
Speaker 1: was being weak. And so it began. That's Jason Miller again,
Speaker 1: they're the presidential advisor answering questions from the lawyers. You
Speaker 1: also heard the voice of Bill Stepian, the campaign manager,
Speaker 1: who told the press it in that night. You know,
Speaker 1: you might want to go out there say they're counting
Speaker 1: the vote still will check back here tomorrow, and of
Speaker 1: course that is not how it went. We reassemble the
Speaker 1: panel on sound on Genie is back with Us today
Speaker 1: Jeannie Chantano along with Doug High, Republican strategist. Doug, what
Speaker 1: did you make of this today? Watching not just the
Speaker 1: information come out a lot of this stuff we've heard,
Speaker 1: but hearing it in their voices. These are the people
Speaker 1: in the room repeatedly, including Donald Trump's daughter telling him
Speaker 1: that he had lost. It's it's a very different context
Speaker 1: when you hear these words directly from from somebody, whether
Speaker 1: it's you know, in person testimony or or video. And
Speaker 1: obviously what the committee is doing is they are laying
Speaker 1: out you know, this is all political, but this is
Speaker 1: also very much of essentially a legal proceeding. They are
Speaker 1: building a case, um, and it seems clear that they'll
Speaker 1: be making a lot of criminal referrals um, you know,
Speaker 1: to the Department of Justice. Will have to see how
Speaker 1: high and how far that goes. So they bring it
Speaker 1: back to April today, any when the president at the time,
Speaker 1: Donald Trump, was talking about, hey, if I lose this election,
Speaker 1: it's only because it's rigged. And it went right up
Speaker 1: until that night when they decided, all right, let's go
Speaker 1: for it. Let's say that we won before they start
Speaker 1: finding votes in in their words and Rudy Giuliani's words
Speaker 1: at four o'clock in the morning, Uh, important to start
Speaker 1: here at the source, right this, This is not a
Speaker 1: president who was confused about what was going on. That's right.
Speaker 1: And you know, I had a bit of, you know,
Speaker 1: a sort of surreal experience listening to this, because of
Speaker 1: course we all lived through this we pay, you know,
Speaker 1: fairly close attention to these things. But you know, as
Speaker 1: you think about what was going on the April before
Speaker 1: the election and going forward, we knew he was making
Speaker 1: these statements. You would hear him on and off, but
Speaker 1: to see it laid out the way they did today,
Speaker 1: starting back in April, going through to getting inside the
Speaker 1: room in election night, and then continuing, it's it's a
Speaker 1: stunning reality. And you know this idea that there was
Speaker 1: this quote unquote team normal versus Trump, and they were
Speaker 1: people who were enormously supportive of him and wanted him
Speaker 1: to win, but telling him the reality and he wasn't
Speaker 1: accepting it. It was I think a very very effective day.
Speaker 1: And the most important thing is they are debunking this
Speaker 1: claim that the election was stolen, and they are making
Speaker 1: the case that the president himself knew that it wasn't stolen,
Speaker 1: and he continued making this case anyways, which results in
Speaker 1: the violence on January six, and so many people he trusted,
Speaker 1: so many loyal uh Trump staffers, including his own family,
Speaker 1: were telling him this. As it turns out, that was
Speaker 1: really something to behold along with Bill Barr, I want
Speaker 1: to hear this next portion here because it was remarkable.
Speaker 1: The former Attorney General here loom large in the proceedings
Speaker 1: today again not in person video testimony as and he
Speaker 1: described as he began to give up on Donald Trump.
Speaker 1: He describes a visit to the White House November twenty three,
Speaker 1: his first visit after the election, spoke with Donald Trump
Speaker 1: in person the first time, who was describing massive fraud
Speaker 1: and question why the Department of Justice was not doing more.
Speaker 1: As Bill Barr leaves the oval, he's with Jared Kushner
Speaker 1: and Dan Scovino, the the social media director, and he
Speaker 1: approaches them to ask the question here he is, how
Speaker 1: long is how long is he gonna carry on with
Speaker 1: this stolen election stuff? Where is this going to go?
Speaker 1: And by that time A. Meadows had caught up with
Speaker 1: me and uh leaving the office and caught up to
Speaker 1: me and said, uh that uh uh. He said, look,
Speaker 1: I I think that he's becoming more realistic and knows
Speaker 1: that a limit how far he can take this. And
Speaker 1: then Jared said, you know, yeah, we're working on this.
Speaker 1: We're working on it. We're working on it. Doug Hi
Speaker 1: that it's it's incredible to think that his his nearest
Speaker 1: advisors at the time thought he was about to come around,
Speaker 1: that Donald Trump would kind of drop the stolen election
Speaker 1: thing that was Thanksgiving. It's now summer of two. Yeah,
Speaker 1: I don't know what they expected him to come around on.
Speaker 1: You know, If if anything, Trump has been remarkably as
Speaker 1: wrong as he's been, has been remarkably consistent on this.
Speaker 1: There has been no change in any of his rhetoric.
Speaker 1: Um he's pushed list since before the election. You know.
Speaker 1: He we often say about public speaking, tell people what
Speaker 1: you're going to tell them, say it, and then tell
Speaker 1: him what you just told him. That's essentially what Trump did.
Speaker 1: He said the election was was rigged before he lost,
Speaker 1: he said it while he lost, and he's continuing to
Speaker 1: say it now. And you know, for for AIDS to
Speaker 1: be surprised at this or to think that he would
Speaker 1: somehow turn around says that they were either engaged massively
Speaker 1: wishful thinking, or they don't know the guy at all.
Speaker 1: They of course would be replaced by Rudy Giuliani and
Speaker 1: in Sydney Powell and Company shortly thereafter. With regard to
Speaker 1: the I guess what we'd call the the inner circle,
Speaker 1: uh Genie. But to think that everyone in the Oval
Speaker 1: office thought the President was going to probably drop this.
Speaker 1: His supporters still believe it. Large percentages of Americans still
Speaker 1: believe it. As this January six Committee does its work,
Speaker 1: they do. I mean today there isn't a primary election
Speaker 1: in Nevada, just as an example, and you've got somebody
Speaker 1: running on the Republican side, Sam Brown, who has raised
Speaker 1: an enormous amount of money on the big lie against
Speaker 1: Adam Laxell, who is likely to win that primary, who
Speaker 1: actually filed a lawsuit claiming that the election was stolen.
Speaker 1: One of these two people is likely to be the
Speaker 1: Republican nominee from Nevada, and very well could be the
Speaker 1: next Senator from the state of Nevada. As Katherine Corti's
Speaker 1: master face. Is a really tough election. So these that's
Speaker 1: just one state, one primary where this very real lie
Speaker 1: about this election has continued to resonate. And that's why
Speaker 1: this is the most important thing the January six Committee
Speaker 1: can do to underscore from the mounds of people who
Speaker 1: know the President and who told him that this was
Speaker 1: indeed a lie. By the way, Bill Stepien, again this
Speaker 1: was Trump's campaign manager at the Times, is that he
Speaker 1: was supposed to testify today wife when the labor I'm
Speaker 1: sure Doug you might even know each other or work together,
Speaker 1: but he's currently advising the Republican candidate. This is incredible,
Speaker 1: who's running to unsee Liz Cheney, endorsed by Donald Trump,
Speaker 1: continues to say the election was stolen? How can you
Speaker 1: do both right now with a straight face? Doug, Well,
Speaker 1: you know, certainly in politics you make different arguments for
Speaker 1: different purposes and in different places. Um, But you know this,
Speaker 1: this is obviously, you know, a stretch and and something
Speaker 1: that I don't think anybody was really paying much attention
Speaker 1: to until obviously this week. No, of course, you know,
Speaker 1: we'll we'll have to see, you know, we'll have to
Speaker 1: see if he's if he says anything about this, or
Speaker 1: his candidate UM says anything about this. But it obviously,
Speaker 1: you know, creates more and again this this is very
Speaker 1: political proceeding, you know, more things for Liz Cheney to
Speaker 1: talk about, um when she's campaigning back home. Well, boy,
Speaker 1: I guess so do you think that would affect his performance?
Speaker 1: Or as this Washington genie and we're cooler than that,
Speaker 1: you know, you're very cool, Joe Matthew right down there
Speaker 1: in Washington you know up here in New York. We
Speaker 1: of course no Bill Stepion because he was enormously involved
Speaker 1: in Bridgegate with Chris Christie, so he has a long
Speaker 1: history with with those of us in the Northeast. Wait,
Speaker 1: there's just there's so many layers. Genie, Doug, Thank you, Doug.
Speaker 1: Comeback soon. Genie will of course, she's part of the
Speaker 1: family here on Bloomberg Sound on the fastest hour in politics.
Speaker 1: We'll meet you back here tomorrow. We'll get two more
Speaker 1: hearings this week and a lot more to follow from
Speaker 1: this White House. This is Bloomberg