WEBVTT - Bloomberg Surveillance TV: April 11, 2024 0:00:02.440 --> 0:00:06.800 Bloomberg Audio Studios, Podcasts, radio News. 0:00:11.640 --> 0:00:15.440 This is the Bloomberg Surveillance Podcast. I'm Jonathan Ferrow, along 0:00:15.480 --> 0:00:18.680 with Lisa Bromwitz and Amrie Hordern. Join us each day 0:00:18.720 --> 0:00:22.280 for insight from the best in markets, economics, and geopolitics 0:00:22.400 --> 0:00:24.920 from our global headquarters in New York City. We are 0:00:24.920 --> 0:00:27.680 live on Bloomberg Television weekday mornings from six to nine 0:00:27.720 --> 0:00:31.280 am Eastern. Subscribe to the podcast on Apple, Spotify or 0:00:31.320 --> 0:00:33.960 anywhere else you listen, and as always on the Bloomberg 0:00:34.040 --> 0:00:37.199 Terminal and the Bloomberg Business App. George is with us 0:00:37.200 --> 0:00:39.360 now for more. So, George, let's talk about it. The 0:00:39.440 --> 0:00:42.680 data yesterday. Do you believe or not that that puts 0:00:42.680 --> 0:00:44.479 to bed the idea of where we're going to get 0:00:44.479 --> 0:00:45.879 a rake cut anytime soon? 0:00:46.960 --> 0:00:47.040 Oh? 0:00:47.080 --> 0:00:48.199 Yeah, I think it does push it off. 0:00:48.200 --> 0:00:49.720 And I think that's what we're seeing across you know, 0:00:49.760 --> 0:00:52.520 all the forecasters and the market's been doing this all along, 0:00:52.600 --> 0:00:55.640 ever since, and and this is really the challenge, I mean, 0:00:55.680 --> 0:00:57.640 because once you get to a point where the market 0:00:57.680 --> 0:00:59.880 now is actually underpricing what the Fed has and they're 0:01:00.760 --> 0:01:03.120 it does really kind of you know, call into question 0:01:03.200 --> 0:01:06.040 the timing and timing is critical we you know, the 0:01:06.120 --> 0:01:10.080 June July and if now that's really pushed off, you know, 0:01:10.120 --> 0:01:12.200 the election. Of course that doesn't really shouldn't play a 0:01:12.240 --> 0:01:14.960 role with the ifty data gets weaker and warrants an 0:01:15.000 --> 0:01:17.600 actual cut. But I do think that you know that 0:01:17.720 --> 0:01:20.200 they should cut in July. I have that that far. 0:01:20.400 --> 0:01:21.680 I'm not going to change up part of the view. 0:01:21.720 --> 0:01:24.440 I think that yesterday was an overreaction by the market. 0:01:24.440 --> 0:01:26.640 But we have a big challenge now here because we 0:01:26.800 --> 0:01:31.360 were banking on we collectively the global bomb market unsynchronized easing. 0:01:31.680 --> 0:01:33.160 And now if you have this challenge, we have this 0:01:33.240 --> 0:01:34.200 unsenchronized easing, and. 0:01:34.200 --> 0:01:35.200 The Fed's delayed. 0:01:35.560 --> 0:01:37.240 Other central banks are going to be worried as well, 0:01:37.240 --> 0:01:39.800 so that this does add to volatility. That where it 0:01:39.840 --> 0:01:41.640 adds to volatility is in the ten year more so 0:01:41.720 --> 0:01:42.520 than in the two year. 0:01:42.680 --> 0:01:45.120 Jeg's lots to unpacked. There the word over reaction, I 0:01:45.120 --> 0:01:46.560 want to get into that just a little bit more. 0:01:46.600 --> 0:01:48.880 Do you think an upside surprise of six basis points, 0:01:49.080 --> 0:01:51.320 because ultimately that's all it was. Do you think an 0:01:51.360 --> 0:01:54.080 upside surprise of six basis points was worth a twenty 0:01:54.120 --> 0:01:55.880 basis point move at the front end of the curve. 0:01:56.920 --> 0:01:59.880 That just goes to show you how lack of conviction 0:02:00.040 --> 0:02:02.760 there is in the marketplace and positioning and how flows 0:02:02.800 --> 0:02:03.560 can change very quickly. 0:02:03.600 --> 0:02:04.800 This is a very binary market. 0:02:04.880 --> 0:02:07.560 When you're on hold and your data dependent both the 0:02:07.560 --> 0:02:09.600 markets and the FED, you know it's going to cause 0:02:09.639 --> 0:02:11.520 you know, these sort of sort of reactions in my opinion, 0:02:11.600 --> 0:02:12.480 although Jim Read. 0:02:12.320 --> 0:02:14.880 Did put it well over from Deutsche Bank talking about 0:02:14.880 --> 0:02:17.240 how this really calls into the question about whether the 0:02:17.240 --> 0:02:19.640 bump is really a bump, and we'd been talking about 0:02:19.639 --> 0:02:21.200 this for a long time. At what point does it 0:02:21.280 --> 0:02:24.000 become a trend in something stickier? And really from all 0:02:24.000 --> 0:02:26.040 of the notes, it seems like people are saying this 0:02:26.240 --> 0:02:29.040 is sticky and if you discount that, that's going to 0:02:29.080 --> 0:02:31.399 be at your peril. Why are you discounting that? 0:02:32.560 --> 0:02:35.600 Well, because look, the sticky versus accelerating inflation is a 0:02:35.600 --> 0:02:36.360 critical point. 0:02:36.560 --> 0:02:37.880 And it's early in the year. 0:02:37.919 --> 0:02:40.640 We again this, if we're data dependent, we have a 0:02:40.680 --> 0:02:42.320 long road ahead of us with a lot of things 0:02:42.360 --> 0:02:44.960 that can change on both, you know, the growth side 0:02:45.000 --> 0:02:47.240 versus the inflation side. And to just to kind of 0:02:47.280 --> 0:02:50.280 only focus on this inflation fear, I think that you 0:02:50.320 --> 0:02:52.720 know could call it the question, and I think, you know, 0:02:52.720 --> 0:02:55.040 the op ed from Muhammad al Arian is a good one. 0:02:55.040 --> 0:02:56.640 I mean, this might be a world that we're going 0:02:56.680 --> 0:02:58.760 to be training between two and three percent on inflation 0:02:59.360 --> 0:03:02.760 and to jeopardize growth because of that's going to wait 0:03:02.800 --> 0:03:05.640 until they see the actual improvement as well as or 0:03:05.680 --> 0:03:06.760 weakness in the economy. 0:03:06.960 --> 0:03:08.360 At that point is always too late. 0:03:08.639 --> 0:03:10.640 Just to say on the over reaction concept and just 0:03:10.639 --> 0:03:13.240 what that says about positioning. We talked a lot about 0:03:13.240 --> 0:03:16.080 the pretty dramatic moves in the treasure market. In the 0:03:16.080 --> 0:03:18.600 currency market, as John was talking about, we saw the 0:03:18.639 --> 0:03:21.640 biggest one day rally in the dollar going back to 0:03:21.720 --> 0:03:25.280 the height of the banking crisis in March twenty twenty three. 0:03:25.360 --> 0:03:28.640 How much are you seeing this as really the difficulty 0:03:28.639 --> 0:03:31.320 and frankly the challenge to some sort of synchronized rate 0:03:31.360 --> 0:03:32.919 cutting cycle globally. 0:03:34.560 --> 0:03:36.120 It really comes down to the FX markets. 0:03:36.560 --> 0:03:39.880 I think that's clearly the case, and we look at 0:03:39.920 --> 0:03:43.560 what's going on with the dollar yen. This gets into 0:03:43.600 --> 0:03:46.200 a very potential vicious cycle where that that's why the 0:03:46.760 --> 0:03:49.960 ten year the dollar and oil are super critical. That 0:03:50.040 --> 0:03:53.480 macro trio is what's really going to dictate what happens 0:03:53.480 --> 0:03:53.920 going forward. 0:03:53.960 --> 0:03:54.760 And let's not forget that. 0:03:54.760 --> 0:03:57.680 We've had a very accommodative or I guess financial easy 0:03:57.720 --> 0:04:01.480 accommodative environment. If those three variables start moving in a 0:04:01.800 --> 0:04:04.640 way where it's detrimental to risk assets, then you'll get 0:04:04.640 --> 0:04:06.800 your tightening there too. So I think all this stuff 0:04:06.840 --> 0:04:07.480 is in play. 0:04:07.640 --> 0:04:10.000 Joeyce We's sit on foreign exchange, the euro one O seven, 0:04:10.240 --> 0:04:13.160 dolly N one fifty three, cable one twenty five, that 0:04:13.240 --> 0:04:17.040 print yesterday that moving yields in rates stayside. Who does 0:04:17.080 --> 0:04:19.839 that upset more? The Bank of England, the BOJ or 0:04:19.839 --> 0:04:20.320 the ECB. 0:04:21.640 --> 0:04:25.320 I think the bo J first, ECB second, BOE third. 0:04:25.839 --> 0:04:28.240 I think this is really coming down to like this 0:04:28.240 --> 0:04:30.000 this one fifty three one fifty five level. 0:04:30.279 --> 0:04:31.320 It's really important on. 0:04:31.279 --> 0:04:34.360 The dollar end and in a moving ECB. ME like 0:04:34.440 --> 0:04:37.440 I think like we've always looked at the ECB as 0:04:37.680 --> 0:04:39.920 making policy mistakes. I think they're trying to be proactive. 0:04:39.960 --> 0:04:41.680 I think they're trying to do the right thing. Uh, 0:04:41.760 --> 0:04:44.200 they probably will have to ease before the FED, and 0:04:44.240 --> 0:04:46.039 it's gonna be hard, and I think it's obviously a 0:04:46.080 --> 0:04:48.480 challenge for them, but they just kind of sit here, 0:04:48.600 --> 0:04:50.840 do nothing. It is not the right course of action either. 0:04:50.960 --> 0:04:52.880 Do you think it tempt their ability to go further 0:04:53.200 --> 0:04:56.159 beyond flagging a June raid cup at this meeting this morning? 0:04:57.839 --> 0:04:58.920 At a minimum, what could happen? 0:04:58.960 --> 0:05:01.080 I mean because if you'll I want to always backpedal, 0:05:01.200 --> 0:05:03.320 and I think this could then enter into an environment 0:05:03.320 --> 0:05:06.040 where such a bank's ease and then they skip meetings 0:05:06.040 --> 0:05:08.680 and they try to really calibrate the message in between. 0:05:09.000 --> 0:05:10.760 I think that's really what they can do, try to 0:05:10.800 --> 0:05:13.600 really slow down the process. And that changed the narrative 0:05:13.720 --> 0:05:15.719 every other inflation report. 0:05:15.920 --> 0:05:19.080 This is really difficult, George, because one fifty two Lisa's 0:05:19.080 --> 0:05:20.599 been talking about it was the line of the sand 0:05:20.600 --> 0:05:22.599 for intervention, and here we are at one fifty three. 0:05:22.839 --> 0:05:24.680 Steve England are a standard chant to put a note 0:05:24.720 --> 0:05:27.360 out ahead of this, So this is before the CPI 0:05:27.440 --> 0:05:29.320 print and this is what he said, a hot print 0:05:29.320 --> 0:05:33.800 would mean fighting market fundamentals. That's a difficult intervention proposition 0:05:34.080 --> 0:05:37.240 given where the fundamentals are and how strong the tide 0:05:37.320 --> 0:05:39.920 is right now against the BOJ Do you think they 0:05:39.920 --> 0:05:43.160 can intervene in the effects market anymore so? 0:05:43.520 --> 0:05:46.320 The challenge, of course, other other than just verbal intervention 0:05:47.480 --> 0:05:50.120 is that for the better part of the last eighteen months, 0:05:50.120 --> 0:05:53.200 as the FED was hiking and then concluding their hiking cycle, 0:05:53.240 --> 0:05:56.080 and then all these eases were priced in. I mean, 0:05:56.160 --> 0:05:59.040 in many ways Bank of Japan was hoping in banking 0:05:59.080 --> 0:06:02.040 on global central banks easing and that would take some 0:06:02.080 --> 0:06:04.520 pressure off the currency. And then now this really does 0:06:04.560 --> 0:06:07.480 call into question that. And therefore, you know, do you 0:06:07.520 --> 0:06:09.360 start raising rates faster and then you get into the 0:06:10.040 --> 0:06:12.760 whole yen carry trade and the concerns around that. So 0:06:13.080 --> 0:06:15.239 I think that, you know, the Japan story is super critical. 0:06:15.279 --> 0:06:18.440 Obviously it's important to us, and I think that it 0:06:18.480 --> 0:06:22.000 does at a minimum need to have some sort of intervention. 0:06:22.320 --> 0:06:24.560 I don't think that a move beyond with fifty five 0:06:24.600 --> 0:06:26.960 will be tolerated, and I think that that we'll probably 0:06:27.000 --> 0:06:30.520 see something there, but we don't know obviously you know, 0:06:30.600 --> 0:06:32.520 with clarity on what's going to happen there. But I 0:06:32.520 --> 0:06:35.400 do think that it's going to now move towards kenne 0:06:35.400 --> 0:06:37.880 buj actually raised rates even more than just ten bases 0:06:37.920 --> 0:06:38.640 points out of clip. 0:06:39.000 --> 0:06:42.040 Does yesterday's print George really challenge this thesis that we've 0:06:42.040 --> 0:06:43.960 been hearing from a lot of guests, which is go 0:06:44.040 --> 0:06:46.760 outside of the US. There's more value elsewhere, whether it's 0:06:46.800 --> 0:06:49.720 risk assets or whether it's currency that generally it seems 0:06:49.720 --> 0:06:52.800 like the US is sort of overpriced. Does that get 0:06:52.920 --> 0:06:56.040 challenged fundamentally based on the fact that the US is 0:06:56.080 --> 0:06:58.720 still the one printing inflation as well as strong growth. 0:07:00.040 --> 0:07:02.920 If you look across your world bond screen on your 0:07:02.920 --> 0:07:05.719 Bloomberg terminal, and as I'm sure you all do, the 0:07:05.800 --> 0:07:08.360 US is still one of the highest yielding for developed markets. 0:07:08.400 --> 0:07:11.400 I mean New Zealand, you know, and a few others maybe, 0:07:11.400 --> 0:07:13.920 but there's you know, the attractive yields in the US, 0:07:13.920 --> 0:07:15.320 and that's why I feel like it's gonna be hard 0:07:15.320 --> 0:07:16.000 for fixing. 0:07:15.800 --> 0:07:18.120 Income to go unhinged. And you know, this. 0:07:18.240 --> 0:07:20.480 Four to fifty level is critical psychologically, and we could 0:07:20.480 --> 0:07:22.240 go to four seventy five and a ten yeard wouldn't 0:07:22.240 --> 0:07:22.720 be surprised. 0:07:23.080 --> 0:07:24.720 But nonetheless, there's. 0:07:24.600 --> 0:07:26.280 You know, capital will come to the US because of 0:07:26.280 --> 0:07:28.600 our higher yields, and I think that's gonna benefit more 0:07:28.640 --> 0:07:31.080 fixed income than equities, considering where evaluations are. 0:07:31.080 --> 0:07:34.280 Now interesting George, thank you, sir jo Cancaves of MBFJ 0:07:34.440 --> 0:07:46.960 on the bomb market join, I guess is City's rubber 0:07:47.040 --> 0:07:50.040 suckin city. I know you've got a city. Great Rubbert 0:07:50.040 --> 0:07:52.400 that coal for June for a right cut, and I 0:07:52.440 --> 0:07:54.000 just wonder is it just about holding on by his 0:07:54.040 --> 0:07:57.720 fingernails after that pp I print, Thanks. 0:07:57.560 --> 0:07:59.720 So much for having me. Yeah, we're still holding on 0:07:59.760 --> 0:08:01.880 to that June call. I think it's a very close 0:08:02.480 --> 0:08:05.920 call at this point. As Michael McKee had said, you know, 0:08:06.040 --> 0:08:09.640 once you have three months of data, you start to 0:08:09.640 --> 0:08:12.320 think that might be a trend, and we've seen fairly 0:08:12.400 --> 0:08:15.440 hot inflation data throughout the first quarter of this year. 0:08:15.680 --> 0:08:18.000 We do think we have to see how it shakes 0:08:18.040 --> 0:08:21.480 out with PPI. If core PCE is coming in around 0:08:22.080 --> 0:08:24.600 point three is probably the limit or maybe somewhere below 0:08:24.640 --> 0:08:27.080 that would be okay if you're running that type of rate. 0:08:27.120 --> 0:08:31.240 We think Shairpal would feel comfortable at least starting to 0:08:31.280 --> 0:08:34.280 ease in June. But again, if it comes in something 0:08:34.320 --> 0:08:37.440 like point three, that's probably the borderline of where you'd 0:08:37.440 --> 0:08:40.560 feel comfortable. So I think the inflation numbers are going 0:08:40.600 --> 0:08:42.679 against the call, and certainly the probability of it have 0:08:42.679 --> 0:08:45.720 gone down. But that PPI will see how it shakes 0:08:45.760 --> 0:08:49.680 out with the core PCE estimates, But overall that's pretty 0:08:49.679 --> 0:08:52.640 good news, so we think. And also, this is a 0:08:52.679 --> 0:08:55.839 FED that seems to really want to get the easing 0:08:55.880 --> 0:09:01.040 cycle started at some point this year. So on balance, 0:09:01.080 --> 0:09:02.760 we're holding on to it. But again, you know, it's 0:09:02.800 --> 0:09:05.520 going to depend on those next few inflation prints and 0:09:05.559 --> 0:09:06.760 how the labor market evolves. 0:09:06.840 --> 0:09:08.240 Well, for a while, you in the team of City 0:09:08.320 --> 0:09:10.720 have said this Federal Reserve has shifted emphasis. It's putting 0:09:10.720 --> 0:09:13.600 a greater emphasis on the potential for labor market weakness. 0:09:13.600 --> 0:09:15.680 And in line with that, I think the perceived reaction 0:09:15.800 --> 0:09:18.920 function from the market of the Federal Reserve has shifted 0:09:18.920 --> 0:09:21.520 as well. Maybe up until yesterday, there was this belief 0:09:21.520 --> 0:09:24.680 that the Federal Reserve could respond to adverse shocks, maybe 0:09:24.720 --> 0:09:27.480 weakness pronounced weakness in the labor market because of these 0:09:27.480 --> 0:09:31.360 disinflationary trends. Robert, I'm trying to understand is whether that 0:09:31.480 --> 0:09:34.480 story is being damaged by the print of yesterday or not. 0:09:34.720 --> 0:09:37.480 Do you think it has Yeah, this is a. 0:09:37.600 --> 0:09:40.120 This is a tough question because that's certainly been part 0:09:40.120 --> 0:09:42.600 of the imputus for our calls. We do think there 0:09:42.679 --> 0:09:45.120 is enough signs of softness in the labor market, not 0:09:45.200 --> 0:09:48.040 so much in the overall aggregate numbers. So hiring is 0:09:48.080 --> 0:09:50.600 still strong. Jobs claim they are still low, but you 0:09:50.640 --> 0:09:54.600 are seeing things like hiring intentions fall significantly from small businesses. 0:09:55.200 --> 0:09:58.200 You seeing things like the hiring rate drop notably in 0:09:58.280 --> 0:10:02.160 recent quarters. So we think there was a softness, that 0:10:02.240 --> 0:10:05.400 the FED was getting worried that the labor market was 0:10:05.640 --> 0:10:08.960 weakening too much and that you could be heading into 0:10:08.960 --> 0:10:11.079 a recession. I still think that's a big backbone of 0:10:11.120 --> 0:10:13.160 the call, but now that has to be weighed, as 0:10:13.160 --> 0:10:17.080 you said, against these stronger inflation prints. I do think 0:10:17.120 --> 0:10:20.319 if we do see more signs of weakening, the FED 0:10:20.320 --> 0:10:23.320 would lean more on that element and still like to 0:10:23.440 --> 0:10:26.920 start this cutting cycle. But exactly as you said, it 0:10:27.000 --> 0:10:30.280 complicates the math because before we were getting inflation that 0:10:30.440 --> 0:10:33.800 was good enough and some signs of softening, but the 0:10:33.880 --> 0:10:37.080 last few months have been much stronger inflation than we 0:10:37.080 --> 0:10:37.720 were expecting. 0:10:38.000 --> 0:10:39.680 Rober you keip saying that this is a FED that 0:10:39.720 --> 0:10:41.360 wants to cart and a lot of people have been 0:10:41.400 --> 0:10:44.120 asking why, and there are a lot of conspiracy theories, 0:10:44.200 --> 0:10:46.760 and then there are questions around just somewhere of the weakness, 0:10:46.760 --> 0:10:49.320 of where the weakness is coming from. We heard from 0:10:49.400 --> 0:10:53.040 Jason Thomas of Carlisle earlier this morning that one of 0:10:53.040 --> 0:10:55.679 the reasons why is the deficit, and as it balloons, 0:10:55.800 --> 0:10:58.360 borrowing costs are getting more punitive for the United States. 0:10:58.400 --> 0:11:00.640 How much do you think that's factoring in the decision 0:11:00.960 --> 0:11:02.679 to try to cut rates at a time when a 0:11:02.720 --> 0:11:04.679 lot of that deficits financed through T bills. 0:11:05.960 --> 0:11:07.320 Yeah, great, it's a great question. 0:11:07.440 --> 0:11:07.800 Certainly. 0:11:07.800 --> 0:11:11.120 On the one hand, those deficit numbers are looking very large, 0:11:11.880 --> 0:11:15.800 and interest costs have been growing significantly as a share 0:11:15.920 --> 0:11:17.560 of the overall deficit. 0:11:17.840 --> 0:11:18.720 I don't think. 0:11:18.520 --> 0:11:21.680 Though, that that's the primary concern of the FED. I 0:11:21.679 --> 0:11:23.800 think in the fed's mind that they feel like they've 0:11:23.800 --> 0:11:24.400 done enough. 0:11:24.760 --> 0:11:25.319 They feel like. 0:11:25.240 --> 0:11:28.360 They're restrictive, and they do feel like they're seeing enough 0:11:28.520 --> 0:11:32.080 progress on inflation and enough signs of loosening in the 0:11:32.160 --> 0:11:35.600 labor market and softening in the economy that they're willing 0:11:36.080 --> 0:11:39.520 to start to start easing, especially if they are starting 0:11:39.559 --> 0:11:41.960 to get concerned about those downside risk activity. So I 0:11:42.000 --> 0:11:45.319 don't think that that concern is primary in their mind. 0:11:46.000 --> 0:11:48.800 But more broadly, I do think that is an issue 0:11:49.559 --> 0:11:53.440 that deficits are getting big, and that's something policy makers 0:11:53.440 --> 0:11:55.920 have to pay attention to as interest scars are high, 0:11:56.000 --> 0:11:58.880 but primarily the FED is focused on getting inflation back 0:11:58.880 --> 0:12:01.800 down the target and maintaining activity in the economy. 0:12:02.040 --> 0:12:04.640 Rob Have you changed your long term inflation forecast for 0:12:04.679 --> 0:12:06.280 the United States and the heels of some of these 0:12:06.280 --> 0:12:08.640 prints and your belief that the FED will still cut. 0:12:10.240 --> 0:12:14.680 No, we haven't changed the longer term outlook in terms 0:12:14.720 --> 0:12:18.760 of inflation will gradually go back down to target over 0:12:18.760 --> 0:12:22.200 the next few years. Have somewhat of a sticky path 0:12:22.280 --> 0:12:25.719 down because we think that services inflation is going to 0:12:25.760 --> 0:12:29.280 take longer than many people think to come back down 0:12:29.320 --> 0:12:32.520 to more stable levels, and as mentioned, still have the 0:12:32.520 --> 0:12:36.000 FED cutting in June. But I think the risks around 0:12:36.000 --> 0:12:40.280 that forecast have changed. The risks are looking more tilted 0:12:40.320 --> 0:12:43.680 towards inflation states even higher for longer than we've had, 0:12:43.960 --> 0:12:46.319 and the risks are looking that the FED starts that 0:12:46.720 --> 0:12:49.680 easing cycle a bit later. So we're holding onto those 0:12:49.720 --> 0:12:53.240 similar views, but I think the risks have definitely tilted 0:12:53.240 --> 0:12:54.080 in a different direction. 0:12:54.360 --> 0:12:56.520 Robin, this was great, fantastic hey from you have rubt 0:12:56.520 --> 0:12:58.600 Selkin there sit say just about holding on to this 0:12:58.679 --> 0:13:10.440 June right time. Let's tend to our next story. The 0:13:10.559 --> 0:13:14.200 NTSB said this investigation into last month's Baltimore bridge collapse 0:13:14.440 --> 0:13:17.520 is honing in on the vessel's electrical system. President Biden 0:13:17.559 --> 0:13:19.960 saying the federal government will pay for the bridge recovery 0:13:20.200 --> 0:13:22.720 and rebuild. I meanwhile, the Governor of Maryland saying he 0:13:22.760 --> 0:13:25.120 hopes to restore full service of the Port of Baltimore 0:13:25.280 --> 0:13:27.200 by the end of May. A police to say that 0:13:27.240 --> 0:13:29.760 with us is Governor Wesmore. Governor, thanks for giving us 0:13:29.760 --> 0:13:31.360 your time this morning. I know it's been a very 0:13:31.360 --> 0:13:33.839 difficult month for you and the people of your state, 0:13:34.280 --> 0:13:36.400 very very difficult. I want to start with this because 0:13:36.400 --> 0:13:38.839 the President of the United States, President Joe Biden, has 0:13:38.880 --> 0:13:41.800 committed to funding the cost of the rebuild. How confident 0:13:41.800 --> 0:13:45.240 are you that he can get that financing through Congress. 0:13:47.400 --> 0:13:50.000 Well, I'm confident that it's imperative that we can get 0:13:50.000 --> 0:13:52.240 it done. If you look at the economic impact of 0:13:52.280 --> 0:13:55.959 the Port of Baltimore, the Port of Baltimore is worthy 0:13:56.480 --> 0:14:00.520 and contributes about seventy billion dollars to the American economy. 0:14:00.520 --> 0:14:03.280 The Port of Baltimore is the largest port in this 0:14:03.440 --> 0:14:08.240 country for new cars, for heavy trucks, for agricultural equipment, 0:14:08.360 --> 0:14:12.960 for spices and sugars for coal. That a huge chunk 0:14:13.000 --> 0:14:16.680 of the American economy relies on the Port of Baltimore. 0:14:16.960 --> 0:14:20.280 And so I'm thankful that the President has led and 0:14:20.360 --> 0:14:22.720 rightfully acknowledged that what happened. 0:14:22.400 --> 0:14:24.560 Last week was not just a human catastrophe. 0:14:24.560 --> 0:14:28.720 I mean, we lost six Marylanders during this catastrophe, and 0:14:28.760 --> 0:14:31.840 it was not just an economic catastrophe for Maryland or 0:14:31.920 --> 0:14:35.360 for the region. This was an economic catastrophe for the country. 0:14:35.560 --> 0:14:36.640 And so our ability to. 0:14:36.640 --> 0:14:39.480 Be able to rally in a bipartisan fashion and to 0:14:39.480 --> 0:14:42.360 be able to get the poor reopened and reopen the 0:14:42.400 --> 0:14:44.880 brit and get the bridge rebuilt is going to be 0:14:44.880 --> 0:14:45.880 a national priority. 0:14:46.000 --> 0:14:48.880 So two issues that, so reopened the poor and reopened 0:14:48.880 --> 0:14:50.560 the bridge. Can we did with the first one? First, 0:14:51.000 --> 0:14:53.240 reopened the poor? How strikeful? But it is not going 0:14:53.280 --> 0:14:53.440 to be. 0:14:56.800 --> 0:14:59.040 This is a remarkably complex operation. 0:14:59.200 --> 0:15:02.360 We've never had at a maritime disaster like this, where 0:15:02.440 --> 0:15:06.080 you have not only a ship, a vessel that's the 0:15:06.120 --> 0:15:08.360 size of the Eiffel Tower and the weight of the 0:15:08.440 --> 0:15:11.880 Washington Monument that is now stuck in the middle. 0:15:11.640 --> 0:15:12.640 Of the Potapsco River. 0:15:12.680 --> 0:15:14.040 And part of the reason that it's stuck in the 0:15:14.040 --> 0:15:17.080 middle of the river is because it has a bridge, 0:15:17.320 --> 0:15:20.160 an iconic bridge that's sitting on top of it. Three 0:15:20.240 --> 0:15:23.000 to four thousand tons of steel are sitting on top 0:15:23.080 --> 0:15:25.080 of the bridge, and the remainder of the bridge is 0:15:25.080 --> 0:15:26.960 sitting at the bottom of the river. 0:15:27.200 --> 0:15:30.040 So this is still a remarkably complex operation. 0:15:29.760 --> 0:15:31.680 One where we have our divers who are in there 0:15:31.720 --> 0:15:35.280 every day and they literally cannot see anywhere between a 0:15:35.320 --> 0:15:37.240 foot or two in front of them because of the 0:15:37.240 --> 0:15:40.280 amount of wreckage that's in the water. And so the 0:15:40.320 --> 0:15:42.360 ability that we've now been able to open up two 0:15:42.440 --> 0:15:45.200 channels that can now have up to a fourteen foot 0:15:45.240 --> 0:15:47.760 depth so you can get certain commercial vehicles. We've had 0:15:47.800 --> 0:15:52.360 fifty nine commercial transfers that have already taken place, and 0:15:52.440 --> 0:15:54.520 hopefully by the end of May we'll have. 0:15:54.520 --> 0:15:56.920 Fully functioning operations for the port. 0:15:57.480 --> 0:16:00.160 Is a staggering accomplishment when you think about the speed 0:16:00.160 --> 0:16:03.080 in the coordination that was required in order to make 0:16:03.080 --> 0:16:03.520 that happen. 0:16:03.680 --> 0:16:05.440 So end of May for the port governor. But what 0:16:05.480 --> 0:16:07.720 about the rebuild of the bridge, What does this timeline 0:16:07.720 --> 0:16:08.080 look like? 0:16:10.880 --> 0:16:12.280 The rebuild of the bridge is going to be a 0:16:12.280 --> 0:16:14.960 longer timeline. The thing that we know is for that 0:16:15.000 --> 0:16:17.760 bridge that over thirty six thousand people went over that 0:16:17.800 --> 0:16:20.520 bridge every single day. That was the bridge that got 0:16:20.520 --> 0:16:22.760 people from where they lived to where they worked, from 0:16:22.760 --> 0:16:25.240 where they lived to where they worshiped for they lived 0:16:25.240 --> 0:16:26.280 to where they went to school. 0:16:26.600 --> 0:16:28.320 It was also a key and. 0:16:28.280 --> 0:16:31.920 A crucial part of port operations because for the Port 0:16:31.920 --> 0:16:35.200 of Baltimore, it's not just maritime operations. It's also rail 0:16:35.480 --> 0:16:37.760 and it's also truck operations that exists in the Port 0:16:37.760 --> 0:16:40.520 of Baltimore. And so in order to truly get the 0:16:40.520 --> 0:16:43.120 Port of Baltimore up and going in the same kind 0:16:43.120 --> 0:16:46.040 of fashion that it was before, getting that bridge rebuilt 0:16:46.160 --> 0:16:48.160 is going to be imperative, and we know that's going 0:16:48.200 --> 0:16:50.440 to be a longer timeline, but we are committed to 0:16:50.480 --> 0:16:52.880 making sure that we get the Key Bridge rebuilt. 0:16:52.960 --> 0:16:54.360 And I know that's why you're going to be in 0:16:54.480 --> 0:16:57.400 Washington today to be speaking to lawmakers about the funding 0:16:57.440 --> 0:17:01.160 to rebuild this. I was struck by what Senator said yesterday. 0:17:01.240 --> 0:17:04.560 He says that he wants to get this rebuilt as 0:17:04.600 --> 0:17:07.879 soon as possible, but he said it's bureaucratic gilding and 0:17:08.000 --> 0:17:10.919 lend the environmental reviews kind of blaming it on Democrats. 0:17:10.920 --> 0:17:14.439 For this bureaucracy environmental reviews that could potentially make this 0:17:14.560 --> 0:17:17.600 a long term process and not as quick as say 0:17:17.760 --> 0:17:20.639 you and residents of Maryland want to see. Do you 0:17:21.040 --> 0:17:24.920 agree with him that this should be really fast tracked. 0:17:27.880 --> 0:17:30.960 Well, I'm thankful that Senator Cruz is a yes on 0:17:31.119 --> 0:17:33.240 making sure that we can get one hundred percent funding 0:17:33.720 --> 0:17:36.600 for it. I'm thankful that Senator Cruz understands how imperative 0:17:36.640 --> 0:17:38.480 it is that we both get the port reopened and 0:17:38.560 --> 0:17:39.760 also get the bridge rebuilt. 0:17:40.520 --> 0:17:42.560 I also know that the White House. 0:17:42.600 --> 0:17:43.960 I mean, I have my first phone call from the 0:17:44.000 --> 0:17:46.080 White House at three o'clock in the morning, the morning 0:17:46.119 --> 0:17:48.199 of the tragedy, and the White House has been with 0:17:48.320 --> 0:17:50.760 us every single step of the way. The Secretary of 0:17:50.800 --> 0:17:55.320 Transportation was literally down there boots on ground before noon 0:17:56.200 --> 0:17:58.399 to be able to assess the damage and assess what 0:17:58.440 --> 0:18:00.920 they can do to help. Yet to receive a phone 0:18:00.920 --> 0:18:03.480 call from Senator Cruz, I've yet to receive a visit 0:18:03.520 --> 0:18:04.240 from Senator Cruz. 0:18:04.280 --> 0:18:05.680 I would welcome him to come to. 0:18:05.640 --> 0:18:08.920 Baltimore for him to see exactly the circumstances in the 0:18:08.960 --> 0:18:11.880 situation that we're dealing with. And I'm sure when he came, 0:18:12.240 --> 0:18:14.920 he would also see that there are members of the 0:18:14.960 --> 0:18:17.160 Biden administration who have been on the ground the entire time, 0:18:17.160 --> 0:18:18.560