WEBVTT - Trump Says Xi Call Yielded Rare Earths Progress, More Talks 0:00:02.720 --> 0:00:10.600 Bloomberg Audio Studios, podcasts, radio news. You're listening to the 0:00:10.600 --> 0:00:14.600 Bloomberg Intelligence Podcast. Catch us live weekdays at ten am 0:00:14.640 --> 0:00:18.560 Eastern on Applecarplay and Android Auto with the Bloomberg Business App. 0:00:18.640 --> 0:00:21.920 Listen on demand wherever you get your podcasts, or watch 0:00:21.960 --> 0:00:23.240 us live on YouTube. 0:00:23.520 --> 0:00:25.400 We also want to figure out what's happening in DC. 0:00:25.680 --> 0:00:28.400 You had a social media post from President Trum talking 0:00:28.400 --> 0:00:32.160 about his readout from the President g and President Trump's call. 0:00:32.960 --> 0:00:34.800 Maybe I didn't say that right, but anyway, he talked 0:00:34.840 --> 0:00:37.080 about the call that they had together. Tyler Kendall was 0:00:37.120 --> 0:00:38.440 joining us outside the White House. 0:00:38.880 --> 0:00:41.599 What did he say? What do we know? Yeah, hey, 0:00:41.640 --> 0:00:42.080 Alex Swell. 0:00:42.120 --> 0:00:44.159 President Trump said that the call lasted a little over 0:00:44.200 --> 0:00:46.400 an hour and a half and said that it resulted 0:00:46.440 --> 0:00:50.760 in a quote positive conclusion for both countries. Importantly, he 0:00:50.800 --> 0:00:53.040 said that moving forward, he doesn't think there's going to 0:00:53.080 --> 0:00:56.200 be any questions around rare earth products. As you all know, 0:00:56.280 --> 0:01:00.040 the US had been accusing China of slow walking the 0:01:00.200 --> 0:01:03.400 export licenses when it comes to critical and rare earth 0:01:03.440 --> 0:01:07.039 minerals that really are essential to US supply chains, alleging 0:01:07.080 --> 0:01:10.600 that China had violated the terms reached when they had 0:01:10.680 --> 0:01:14.080 negotiated in Geneva. In fact, I actually caught up with 0:01:14.120 --> 0:01:18.200 the Deputy Treasury Secretary Michael Falkender earlier this week, who 0:01:18.240 --> 0:01:19.920 told me that this was the issue that he thought 0:01:19.959 --> 0:01:23.640 would ultimately mean that these leaders were eventually going to 0:01:23.680 --> 0:01:26.120 have to get on the phone and talk about. President 0:01:26.120 --> 0:01:28.440 Trump also said that there would be another round of 0:01:28.560 --> 0:01:30.760 in person talks like we saw in Geneva. He said 0:01:30.760 --> 0:01:33.880 that Treasury Secretary Scott Besson and Ustr Jamis and Greer 0:01:33.920 --> 0:01:36.880 would lead them, as well as Commerce Secretary Howard Lutnik. 0:01:36.920 --> 0:01:38.400 That would be a new addition to the team. He 0:01:38.520 --> 0:01:41.800 was not there at the talks in Geneva, but a 0:01:41.800 --> 0:01:45.080 pretty remarkable development to think about how our reporting has 0:01:45.120 --> 0:01:49.000 really indicated Paul and Alex that China would really much 0:01:49.080 --> 0:01:52.760 prefer for key advisors to iron out the issues before 0:01:52.800 --> 0:01:55.520 putting Jijiping on the phone call. And there were definitely 0:01:55.600 --> 0:01:57.600 some key issues that they needed to talk about today. 0:01:58.080 --> 0:02:01.640 But as it relates to those rare earths, the US 0:02:01.680 --> 0:02:04.800 President did not specify whether Beijing had agreed to speed 0:02:04.840 --> 0:02:06.040 export licenses. 0:02:06.120 --> 0:02:06.360 Did he? 0:02:06.480 --> 0:02:10.680 Is that something that's just too complex at this point, So. 0:02:10.639 --> 0:02:13.679 We're still waiting further details, we act to put into 0:02:13.720 --> 0:02:16.680 context that the truth social post was rather vague. But 0:02:16.720 --> 0:02:18.919 President Trump himself said that he doesn't think that there 0:02:18.919 --> 0:02:21.480 are going to be questions moving forward here. Of course, 0:02:21.520 --> 0:02:24.120 it's a very complex process and has been something that 0:02:24.160 --> 0:02:26.480 has been the top of mind for the United States 0:02:26.639 --> 0:02:29.200 during these talks and really has become sort of a 0:02:29.240 --> 0:02:32.720 pressure point moving forward, since we know our analysts at 0:02:32.720 --> 0:02:36.079 Bloomberg Economics tell us that thirty out of fifty minerals 0:02:36.120 --> 0:02:39.359 that are deemed critical to the US come primarily from China, 0:02:39.400 --> 0:02:41.520 So they really do have such a big market share 0:02:42.040 --> 0:02:44.480 when it comes to these critical minerals that the US 0:02:44.560 --> 0:02:45.600 ends up relying on. 0:02:47.160 --> 0:02:48.119 All right, very good. 0:02:48.200 --> 0:02:51.359 We appreciate that we're just getting some latest more reporting 0:02:51.400 --> 0:02:55.960 there from Washington, DC as it relates to some of 0:02:55.960 --> 0:02:59.080 those talks, which I guess are inconclusive. 0:02:59.120 --> 0:03:00.720 But I guess it's just good that I think is 0:03:00.760 --> 0:03:03.400 the fact that they literally are talking. Yes, it's probably 0:03:03.440 --> 0:03:05.880 a good thing, right, Yeah, Mari Tyler, thanks a lot. 0:03:05.880 --> 0:03:10.679 Tyler Kendall, Bloomberg Television watching correspondent, joining us on that call. 0:03:12.680 --> 0:03:16.360 You're listening to the Bloomberg Intelligence Podcast. Catch us Live 0:03:16.440 --> 0:03:19.560 weekdays at ten am Eastern on Apple, Cocklay and Android 0:03:19.560 --> 0:03:22.880 Auto with the Bloomberg Business App. Listen on demand wherever 0:03:22.919 --> 0:03:26.040 you get your podcasts, or watch us live on YouTube. 0:03:26.240 --> 0:03:27.960 All right, we got a slew of economic data that 0:03:28.000 --> 0:03:30.839 came out this morning in jobless claims not great, unit 0:03:30.919 --> 0:03:33.400 labor costs, higher, productivity lower. 0:03:33.919 --> 0:03:35.080 It didn't feel really great. 0:03:35.360 --> 0:03:37.640 Let's get Michael mckei Boomb're going to National Economics and 0:03:37.680 --> 0:03:38.840 Policy correspondent. 0:03:38.880 --> 0:03:45.240 How would you describe this data this morning? Not great? 0:03:45.440 --> 0:03:46.160 C plus. 0:03:46.880 --> 0:03:50.240 You know, maybe I'd give it a B minus at 0:03:50.240 --> 0:03:53.000 this point, and I'll explain why. But first I did 0:03:53.040 --> 0:03:55.040 want to mention so you were right. You're right about 0:03:55.080 --> 0:04:02.520 band aids. This is one of those facts to express anywhere. 0:04:02.760 --> 0:04:06.320 But I know somebody who is in the business of 0:04:06.560 --> 0:04:10.680 retailing things like that, and a lot of companies have 0:04:10.800 --> 0:04:14.560 generic brand band aids, and the story is that they 0:04:14.680 --> 0:04:21.000 cannot afford the Chinese made generic band aids anymore. They're 0:04:21.040 --> 0:04:22.920 going to have to raise the price so much that 0:04:22.960 --> 0:04:26.640 they lose the value of having their own brand. So 0:04:26.880 --> 0:04:29.839 this could be a thing you may put your finger on. 0:04:30.120 --> 0:04:33.160 The whole problem with tariffs is can't get generic band 0:04:33.200 --> 0:04:33.800 aids anymore. 0:04:33.960 --> 0:04:38.120 Also, generic band aids are bad. That was my point. 0:04:39.120 --> 0:04:39.960 I'm serious, Okay. 0:04:40.000 --> 0:04:44.000 Anyway, Java's claims are bad to forty seven, but it's 0:04:44.000 --> 0:04:47.240 the highest eight months. But the problem is, and unfortunately 0:04:47.720 --> 0:04:49.320 I have only a black and white chart, so we 0:04:49.360 --> 0:04:54.560 can't show it on the color radio. But this is 0:04:54.600 --> 0:04:56.680 the time of year when we start to get into 0:04:56.720 --> 0:05:01.840 seasonal distortions that have gotten worse since COVID the non 0:05:01.960 --> 0:05:05.760 seasonally adjusted job those claims went down and the seasonally 0:05:05.760 --> 0:05:09.920 adjusted went up significantly. And this has been happening for 0:05:09.960 --> 0:05:11.279 a couple of weeks. And then you look at the 0:05:11.400 --> 0:05:13.919 last couple of years and you see the same pattern. 0:05:14.440 --> 0:05:18.400 So is this a message about what's going to happen maybe? 0:05:19.640 --> 0:05:22.120 Or Neil Dudda and I were talking about it and 0:05:22.160 --> 0:05:25.480 he says yes. Or is it just sort of a headfake. 0:05:25.600 --> 0:05:31.000 Maybe the auto companies have started retooling earlier because they 0:05:31.440 --> 0:05:33.719 aren't selling as many cars, don't need to make any cars, 0:05:33.760 --> 0:05:36.520 they have some space to do it. So that's something 0:05:36.520 --> 0:05:39.920 to keep an eye on. At this point. We've had 0:05:39.920 --> 0:05:44.599 a lot of announcements Disney, Procter, and Gamble today about layoffs. 0:05:44.600 --> 0:05:48.320 Although Procter and Gamble said seven thousand over two years, 0:05:48.560 --> 0:05:52.640 and they didn't say what country, So we're not sure yet, 0:05:52.720 --> 0:05:54.760 which is part of the reason that you have to 0:05:54.839 --> 0:05:57.359 take this not so much with a big, great assault, 0:05:57.360 --> 0:05:59.560 but just say, okay, that's interesting. Let's see what happens 0:05:59.600 --> 0:06:01.800 in the next couple of weeks. Other than that, the 0:06:01.800 --> 0:06:04.000 trade balance is not a surprise. We saw that in 0:06:04.040 --> 0:06:09.159 the advanced trade numbers. Because we stopped buying things from overseas. 0:06:09.200 --> 0:06:11.839 Imports went down fifteen and a half percent, which is 0:06:11.839 --> 0:06:14.840 the biggest fall on record, and the trade balance falls 0:06:14.920 --> 0:06:17.800 by more than half, which is the biggest fall on record. 0:06:18.360 --> 0:06:20.760 But I think back to the first quarter where we 0:06:20.839 --> 0:06:25.120 had bad growth figures because we imported so much. This 0:06:25.160 --> 0:06:28.480 is going to have the opposite effect. And then while 0:06:28.520 --> 0:06:33.120 the unit labor costs that Alex mentioned our old news, 0:06:33.160 --> 0:06:36.040 I mean this first quarter news, it does suggest that 0:06:36.080 --> 0:06:41.560 there's higher pressure on prices for companies, and it's part 0:06:41.560 --> 0:06:45.200 of that whole Are we seeing an inflation and stagnation 0:06:45.960 --> 0:06:46.880 thing at the same. 0:06:46.680 --> 0:06:48.719 Time, which is kind of what you were talking about yesterday? 0:06:48.760 --> 0:06:49.960 Put yeah, I mean a lot of the notes I 0:06:49.960 --> 0:06:52.680 got from Wall Street economists, I kept seeing stagflation in 0:06:52.720 --> 0:06:55.120 the title, So that's coming back. But if I look 0:06:55.120 --> 0:06:57.720 at today's data, Michael's, you're just explaining it as well 0:06:57.760 --> 0:07:00.000 as yesterday's im data. 0:07:00.000 --> 0:07:00.480 I think these. 0:07:00.440 --> 0:07:02.559 Economists are kind of getting it right. They've been telling 0:07:02.600 --> 0:07:06.760 us maybe not the tariffs themselves, but the uncertainty associated 0:07:06.800 --> 0:07:09.240 with teriffs that could lead to slower economic growth of 0:07:09.279 --> 0:07:12.600 that could lead to higher prices. I don't know, it 0:07:12.640 --> 0:07:14.560 feels like that's coming to fruition right now. 0:07:14.640 --> 0:07:16.280 Well, that's one of the things that FED officials have 0:07:16.360 --> 0:07:19.600 been talking about that companies have been sitting on the sidelines, 0:07:19.680 --> 0:07:21.800 not sure what to do, but at some point they're 0:07:21.800 --> 0:07:24.360 going to have to make a decision, and some of 0:07:24.360 --> 0:07:27.360 them may be coming off the sidelines now and just 0:07:27.480 --> 0:07:33.160 going ahead and raising prices in advance of tariffs. Some 0:07:33.200 --> 0:07:35.280 things have gone up in price, but just betting that 0:07:35.480 --> 0:07:39.000 something's going to happen. Part of it because they want 0:07:39.040 --> 0:07:40.680 to protect their margins, and part of it is they're 0:07:40.720 --> 0:07:44.680 probably testing the waters we saw in the last inflation. 0:07:44.800 --> 0:07:47.800 When it started, people were raising prices more than their 0:07:47.840 --> 0:07:49.880 costs were going up because they hadn't been able to 0:07:49.920 --> 0:07:52.560 raise prices in years, and so they were taking advantage 0:07:52.600 --> 0:07:54.440 of it and maybe that's a little bit of what 0:07:54.440 --> 0:07:58.640 we're seeing now. There have been some studies out recently 0:07:58.720 --> 0:08:04.119 that suggests that when Trump announced the tariffs, people raised 0:08:04.160 --> 0:08:08.080 some prices. Then when he put the ninety day hold 0:08:08.120 --> 0:08:12.560 on it, they didn't lower those prices. So businesses are 0:08:12.920 --> 0:08:17.040 maybe not anxious to test whether they lose market share, 0:08:17.080 --> 0:08:19.200 but they're willing to do it if they think that 0:08:19.280 --> 0:08:21.160 things are going to continue in that direction. 0:08:21.800 --> 0:08:24.800 All right, Mike, thanks lot, really appreciate it. Michael mcke Boomer, 0:08:24.840 --> 0:08:27.080 Economics and Policy correspond. 0:08:28.280 --> 0:08:31.960 You're listening to the Bloomberg Intelligence Podcast. Catch us live 0:08:32.040 --> 0:08:35.120 weekdays at ten am Eastern on Apple, Cocklay and Android 0:08:35.160 --> 0:08:38.480 Auto with the Bloomberg Business App. Listen on demand wherever 0:08:38.520 --> 0:08:41.640 you get your podcasts, or watch us live on YouTube. 0:08:42.280 --> 0:08:45.520 Well, how speaker Mike Johnson earlier joined Bloomberg to discuss 0:08:45.600 --> 0:08:48.640 key issues such as Elon Musk's vocal disagreement with the 0:08:48.640 --> 0:08:51.440 Big Beautiful Bill and the speaker Johnson's fight to keep 0:08:51.480 --> 0:08:54.560 the forty thousand dollars salt cap and more. Bloomberg asked 0:08:54.559 --> 0:08:58.040 about the salt cap that he's fighting to maintain. Here's 0:08:58.080 --> 0:09:00.640 part of that conversation, crossing the. 0:09:00.640 --> 0:09:03.160 Grand canyon on a piece of gentle flaws. Okay, the 0:09:03.480 --> 0:09:05.880 equilibrium that we reached here, it took quite a bit 0:09:05.920 --> 0:09:09.040 of time to get to where we are, and you 0:09:09.080 --> 0:09:11.160 can't load me up on either side. And if you 0:09:11.200 --> 0:09:14.680 go and slash the salt cap that we negotiated carefully 0:09:14.720 --> 0:09:16.800 for over a year, it's going to make it very 0:09:16.880 --> 0:09:19.240 difficult for me to deliver the necessary number of votes. 0:09:20.040 --> 0:09:20.320 All right. 0:09:20.360 --> 0:09:23.800 That was House a speaker Mike Johnson speaking with Bloomberg earlier. 0:09:23.800 --> 0:09:24.320 We're going to get the. 0:09:24.360 --> 0:09:28.320 Latest on this big, beautiful tax bill that again pasted 0:09:28.320 --> 0:09:32.040 in House. It is now being negotiated in the Senate. 0:09:32.240 --> 0:09:34.280 A couple of sticking points, including that salting. 0:09:34.280 --> 0:09:36.520 I thought that was just a Matt Miller issue, but 0:09:36.559 --> 0:09:38.440 apparently it's a big deal for a lot of senators 0:09:38.440 --> 0:09:40.720 and a lot of representatives. Nathan Deane joints as senior 0:09:40.760 --> 0:09:46.199 policy analyst for Bloomberg Intelligence. Nathan, what are the outstanding 0:09:46.280 --> 0:09:49.120 issues that you believe the Senate is grappling with now 0:09:49.200 --> 0:09:51.440 and do you expect them to be resolved? 0:09:52.840 --> 0:09:54.800 So, you know, I think the two big issues that 0:09:54.840 --> 0:09:56.880 are actually going on at the moment in the Senate 0:09:57.120 --> 0:10:00.800 is on the deficit, reduction side this idea, is it 0:10:00.840 --> 0:10:03.400 going to increase the deficit as a result? Are the 0:10:03.440 --> 0:10:07.160 elon musks? And for those members in the Senate Senator 0:10:07.200 --> 0:10:09.760 Mike Lee and Senator Ram Paull and Senator Ron Johnson, 0:10:10.040 --> 0:10:12.000 are they going to continue to push for a bill 0:10:12.040 --> 0:10:15.880 that ultimately tries to decrease the deficit aka, you know, 0:10:15.960 --> 0:10:18.600 probably not put out as much in terms of permanent 0:10:18.679 --> 0:10:20.800 tax cuts. The other thing going on is, you know, 0:10:20.880 --> 0:10:22.640 on the how to pay for it is the Medicaid 0:10:22.720 --> 0:10:26.120 work requirements. Because those moderates in the Senate, and you know, 0:10:26.200 --> 0:10:30.040 think of Senator Collins and Senator Murkowski are essentially trying 0:10:30.040 --> 0:10:32.520 to push back some of what the House has already done. 0:10:32.640 --> 0:10:36.400 Now we have two polarizing forces trying to push the 0:10:36.400 --> 0:10:39.240 bill in a different direction, sort of challenging for Senator 0:10:39.320 --> 0:10:41.600 John Thune here. So I think what happens is you 0:10:41.600 --> 0:10:44.040 will see these negotiations continue to play out over the 0:10:44.080 --> 0:10:46.199 next week, maybe the next week and a half or 0:10:46.240 --> 0:10:48.480 two weeks, and then you'll get a clear picture of 0:10:48.480 --> 0:10:50.360 where the Senate's going to go. But this bill does 0:10:50.400 --> 0:10:52.720 have to change in order to get enough senators to 0:10:52.720 --> 0:10:55.000 pass over and support it, and approval. 0:10:55.080 --> 0:10:57.240 Okay, so what does salt really look like? Is it 0:10:57.240 --> 0:10:58.680 going to be forty thousand? Is it going to be 0:10:58.720 --> 0:10:59.920 lower what we think? 0:11:00.600 --> 0:11:02.559 So I think it's going to be either forty thousand 0:11:02.679 --> 0:11:05.120 or slightly lower than that, because I think what's going 0:11:05.200 --> 0:11:07.640 to happen here is, Look, if I'm Representative Lawler, I 0:11:07.679 --> 0:11:10.839 really enjoyed that interview this morning with Speaker Johnson because 0:11:10.840 --> 0:11:13.200 he defended the cap and said, look, we negotiated this, 0:11:13.240 --> 0:11:15.319 and it took a year, and the Salt Caucus in 0:11:15.360 --> 0:11:17.559 the House does have a lot of power. They can say, look, 0:11:17.720 --> 0:11:19.120 we're just not going to vote for it. If you 0:11:19.160 --> 0:11:21.160 want to throw it back down to ten thousand, Senate, 0:11:21.360 --> 0:11:22.840 feel free, I'm not going to vote for it, and 0:11:22.840 --> 0:11:24.920 it's not going to pass. But this idea of it's 0:11:24.960 --> 0:11:27.320 either going to be forty thousand or maybe slightly lower, 0:11:27.360 --> 0:11:30.400 because then the Salt Caucus is in slightly a difficult 0:11:30.679 --> 0:11:33.440 more difficult position because they did get something out of it. 0:11:33.559 --> 0:11:35.319 So for those of you of you in New York 0:11:35.320 --> 0:11:37.120 and New Jersey, I think you're going to get something. 0:11:37.280 --> 0:11:39.359 It's going to be around forty thousand or maybe. 0:11:39.080 --> 0:11:40.000 Just slightly under that. 0:11:40.760 --> 0:11:44.080 Nathan, you mentioned Elon Musky has come out really harshly 0:11:44.160 --> 0:11:47.400 against this bill and on another other topics. How much 0:11:47.600 --> 0:11:51.600 influence does he have now there is he's no longer 0:11:52.280 --> 0:11:56.240 technically part of the Washington story. So this is one 0:11:56.240 --> 0:11:56.720 of those. 0:11:56.520 --> 0:11:58.520 Things where it's starting to brew into an issue. I 0:11:58.520 --> 0:12:00.440 don't think it's an issue just yet. I mean, if 0:12:00.480 --> 0:12:03.319 you looked at Speaker Johnson's interview, he defended what they 0:12:03.320 --> 0:12:05.640 have been doing. And there's a lot of criticism on 0:12:05.640 --> 0:12:09.240 the Congression the CBO at the moment in terms of 0:12:09.240 --> 0:12:12.000 that two point four trillion dollar estimate of increase in 0:12:12.040 --> 0:12:14.360 the deficit. So if you ask the politicians up on 0:12:14.400 --> 0:12:17.559 Capitol Hill, I wouldn't say that there's really much there 0:12:17.720 --> 0:12:20.480 there yet, but it could be coming because, like Elon 0:12:20.600 --> 0:12:24.640 Musk said x yesterday, he's calling for individuals to call 0:12:24.679 --> 0:12:27.320 their senator and call their congressman and say let's not 0:12:27.360 --> 0:12:29.480 support this. And there is a little bit of a 0:12:29.480 --> 0:12:32.680 group coming together. Senator Ran Paul Mike Lee, Ron Johnson. 0:12:32.960 --> 0:12:35.760 You know, that's enough votes that potentially could derail this bill. 0:12:36.080 --> 0:12:38.120 So if i'm Senator John Thune, I have to figure 0:12:38.120 --> 0:12:40.200 out how to get some of those individuals on board 0:12:40.480 --> 0:12:43.079 and the answer is, well, maybe these tax cuts are permanent, 0:12:43.120 --> 0:12:45.600 maybe they just extended a certain amount of time, or 0:12:45.640 --> 0:12:48.040 maybe this bill shrinks, or maybe the debt ceiling goes 0:12:48.040 --> 0:12:50.520 from a five trillion dollar increase to a two trillion 0:12:50.520 --> 0:12:54.040 dollar increase. There's areas of flexibility here for leadership, and 0:12:54.080 --> 0:12:55.600 I think we're going to see that play out over 0:12:55.640 --> 0:12:57.240 the next few weeks. So we still think this bill 0:12:57.280 --> 0:12:59.960 is going to increase the deficit, but stay tuned because 0:13:00.360 --> 0:13:03.040 it may not be what the CBO just scored yesterday. 0:13:03.160 --> 0:13:04.640 I think I asked you this before, but this is 0:13:04.640 --> 0:13:06.920 obviously what I'm interested in. And that's what happens to 0:13:06.920 --> 0:13:10.200 a lot of the energy tax credits, the ITC from 0:13:10.240 --> 0:13:13.199 the IRA and all the companies are kind of waiting 0:13:13.240 --> 0:13:16.360 on tenderhooks for what is going to happen. What's the 0:13:16.360 --> 0:13:19.240 indication that Republican senators are going to step up and 0:13:19.480 --> 0:13:21.480 try and fight for these tax credits. 0:13:22.240 --> 0:13:24.280 So we've heard through the grapevind that you know, there 0:13:24.360 --> 0:13:26.560 are a lot of lobbyists uff on Capitol Hill right 0:13:26.559 --> 0:13:30.280 now really pushing for this, and there are some receptive ears. 0:13:30.440 --> 0:13:32.760 Senator Tom Tillis from North Carolina is one of those 0:13:32.760 --> 0:13:35.360 individuals who's really focused on this now. I think you're 0:13:35.360 --> 0:13:37.480 going to start seeing snippets of what the Senate is 0:13:37.520 --> 0:13:40.200 thinking towards the end of this week, maybe the beginning 0:13:40.280 --> 0:13:42.400 of next week in terms of those tax credits. And 0:13:42.400 --> 0:13:45.079 we're telling our clients that, look, the House tax credits 0:13:45.120 --> 0:13:48.600 were somewhat positive and then initially negative on the solar 0:13:48.640 --> 0:13:51.000 industry in particular. And I think you are going to 0:13:51.000 --> 0:13:53.360 see some moderate voices coming through when it comes to 0:13:53.400 --> 0:13:55.920 the Inflation Reduction Act, because at the end of the day, 0:13:55.920 --> 0:13:58.400 it's going to be very difficult for some of these Republicans, 0:13:58.720 --> 0:14:01.680 say Senator Tom Till for example, that will vote to 0:14:01.720 --> 0:14:04.640 gut the Inflation Reduction Act when the Inflation Reduction Act 0:14:04.720 --> 0:14:08.040 is bring jobs and plants and you know, other types 0:14:08.080 --> 0:14:10.719 of economic growth to their states. So I do think 0:14:10.760 --> 0:14:12.760 you're going to see a modernization of what DAUS did, 0:14:12.960 --> 0:14:14.840 and I think we'll see some of those details coming 0:14:14.880 --> 0:14:15.839 out early next week. 0:14:16.080 --> 0:14:18.680 I got a red headline crossing the Bloomberg Terminal. NATO 0:14:18.800 --> 0:14:23.080 adopts military build up plans as part of new spending goals. 0:14:23.120 --> 0:14:25.400 I want some more reporting on that, so some movement 0:14:25.520 --> 0:14:31.160 there across the pond Nathan. President Trump quite successfully kind 0:14:31.160 --> 0:14:34.040 of work the phones in the House to get passage 0:14:34.120 --> 0:14:36.800 of the deal. It's a little bit different in the Senate, 0:14:36.840 --> 0:14:40.400 where you know, these folks have six year terms. Here, 0:14:40.680 --> 0:14:42.920 what's the expectation of what kind of influenced President Trump 0:14:42.960 --> 0:14:44.320 can plain in this negotiation? 0:14:44.560 --> 0:14:46.440 In the Senate, you hit it right. 0:14:46.440 --> 0:14:48.440 On the head. I mean, obviously, with the House of Representatives, 0:14:48.480 --> 0:14:50.440 they run every two years, and so the idea of 0:14:50.440 --> 0:14:52.680 a primary threat is much more serious to them. 0:14:52.760 --> 0:14:52.960 You know. 0:14:52.960 --> 0:14:54.760 But when it comes to the Senate, I will say 0:14:54.920 --> 0:14:56.920 is is that their primary goal is to make sure 0:14:56.920 --> 0:15:00.240 that the tax extensions or sorry, the tax increases don't 0:15:00.240 --> 0:15:02.280 happen by the end of the year. Senators know they 0:15:02.320 --> 0:15:04.680 have to pass something. The question on the Senate side 0:15:04.920 --> 0:15:06.600 is is that what else are we going to do 0:15:06.680 --> 0:15:08.880 with this? So I think that President Trump will have 0:15:08.920 --> 0:15:11.120 to take a different type of approach in working with 0:15:11.200 --> 0:15:13.400 the Senate. One of those things like, look, this is 0:15:13.440 --> 0:15:16.680 America First policy, and even though only one third of 0:15:16.680 --> 0:15:20.120 the Senate will be running approximately next year, the Republicans 0:15:20.160 --> 0:15:22.120 do want to remain control of both the House and 0:15:22.160 --> 0:15:25.080 the Senate, and failure to adopt something like that could 0:15:25.120 --> 0:15:27.720 put that at risk. So I do think President Trump 0:15:27.720 --> 0:15:29.720 will have a little bit more hands on approach with 0:15:29.800 --> 0:15:32.480 the Senate. Obviously, he's going to have to manage both 0:15:32.520 --> 0:15:35.080 those who want to see the deficit decreased along with 0:15:35.120 --> 0:15:37.240 the moderates who want to see how these paid for 0:15:37.320 --> 0:15:39.800 us decreased. And I think they will be able to 0:15:39.840 --> 0:15:41.920 come up with a solution. It's just going to take 0:15:41.920 --> 0:15:43.120 a lot more work and he's going to have to 0:15:43.160 --> 0:15:44.840 roll up his sleeves to do it, all. 0:15:44.800 --> 0:15:46.880 Right, Nathan, really appreciate it. Thank you very much. 0:15:47.280 --> 0:15:50.640 Nathan Dean joins us from Bloomberg Intelligence. He covers all 0:15:50.680 --> 0:15:54.720 of policy there for Bloomberg Intelligence, that senior policy analy. 0:15:54.960 --> 0:15:56.400 When we were down in DC, I did have a 0:15:56.440 --> 0:15:59.280 little free time you were working. I saw some We 0:15:59.320 --> 0:16:01.880 went to Lincoln. I'm one of all the cool stuff. 0:16:01.920 --> 0:16:04.400 I had no even thought of coming. I'm going to 0:16:04.440 --> 0:16:06.240 go with Capitol Hill and see my representatives. 0:16:06.400 --> 0:16:09.840 Oh god, So I got much more inspiration from going 0:16:09.880 --> 0:16:12.200 to the Lincoln Memorial. But you go to Lincoln Memorial, 0:16:12.720 --> 0:16:15.440 you read the Gettysburg Address, and then you read his 0:16:16.000 --> 0:16:17.359 speech for the second inauguration. 0:16:17.440 --> 0:16:18.840 It just takes your breath away. 0:16:18.920 --> 0:16:19.520 It really does. 0:16:20.040 --> 0:16:21.040 It's just amazing. 0:16:22.840 --> 0:16:26.560 You're listening to the Bloomberg Intelligence podcast. Catch us live 0:16:26.640 --> 0:16:29.680 weekdays at ten am Eastern on Apple Cocklay and Android 0:16:29.720 --> 0:16:33.040 Auto with the Bloomberg Business App. Listen on demand wherever 0:16:33.080 --> 0:16:36.200 you get your podcasts, or watch us live on YouTube. 0:16:36.960 --> 0:16:39.160 So the news that came out on Tuesday was that 0:16:39.200 --> 0:16:43.120 Meta and Constellation Energy met what they call a virtual 0:16:43.400 --> 0:16:47.800 Purchase power agreement. So it's basically an investment to secure 0:16:47.880 --> 0:16:50.320 clean energy from Constellation. But there are lots of different 0:16:51.120 --> 0:16:53.960 nuances to that, but not the only one out there today. 0:16:53.960 --> 0:16:56.800 We also learned that well back in December, Meta Platforms 0:16:56.840 --> 0:17:00.400 also announced a deal to buy green credits from four 0:17:00.480 --> 0:17:04.280 large US solar energy projects, and the owner of that 0:17:04.320 --> 0:17:07.359 project joins US now. Michael Polski is founder and CEO 0:17:07.800 --> 0:17:11.480 of Inventergy, and in Energy is one of the biggest 0:17:11.880 --> 0:17:17.040 largest independent power producers in the United States, not gas plans, solar, onshore, 0:17:17.119 --> 0:17:21.240 offshore wind storage as well as transmission. Really has his 0:17:21.400 --> 0:17:24.160 pulse on the market right now. Good to see you, Michael, 0:17:24.160 --> 0:17:24.920 thanks for coming in. 0:17:25.119 --> 0:17:27.520 Thank you. And we have to add natural guests as well. 0:17:27.720 --> 0:17:29.520 Yes, no, I said that, I said natural, gay I 0:17:29.560 --> 0:17:32.840 did plant so you have all that clean stuff. How 0:17:32.880 --> 0:17:36.560 hard is it to reach these agreements with the hyperscalers 0:17:36.600 --> 0:17:36.920 right now? 0:17:36.960 --> 0:17:38.960 What are those conversations like? 0:17:40.520 --> 0:17:44.400 You know, obviously you know these are large scale agreements, 0:17:44.400 --> 0:17:47.280 so it's not easy to just walk in and these 0:17:47.280 --> 0:17:51.439 are those big deals. So first of all, we have 0:17:51.520 --> 0:17:54.760 to make sure that both sides so that we agree 0:17:54.320 --> 0:17:58.879 on that. You know, suppliers have sufficient supplies and buyer 0:17:59.240 --> 0:18:04.280 satisfied by requirements is what is also important that certain 0:18:04.359 --> 0:18:08.600 reliability standards are being mad and most importantly, the price 0:18:08.640 --> 0:18:11.800 and has to be appropriate for a buyer to agree 0:18:11.840 --> 0:18:12.760 to buy this. 0:18:13.760 --> 0:18:17.240 Another headline crossing the Bloomberg terminal, President g President Trump 0:18:17.320 --> 0:18:20.800 agreed to start new round of talks ASAPTS. According to 0:18:20.880 --> 0:18:25.320 CCTV will bring you continued reporting on that, Michael, is 0:18:25.359 --> 0:18:29.000 the Trump administration making your business, the development of your business, 0:18:29.000 --> 0:18:33.159 the expansion of your business easier, more difficult, no roled impact. 0:18:33.200 --> 0:18:34.000 Yet, what have you seen? 0:18:34.960 --> 0:18:39.919 Clearly the administration send very right sign. President announced energy emergency, 0:18:39.920 --> 0:18:42.720 which I believe there is an energy emergency because we 0:18:42.840 --> 0:18:45.320 have to build. There is an increased demand and we 0:18:45.400 --> 0:18:48.240 have to build more supplies and more supplies. We have 0:18:48.359 --> 0:18:50.600 to build if we build like we used to do 0:18:50.680 --> 0:18:53.680 it, it would take too long. So it's really an emergency. 0:18:54.320 --> 0:18:57.160 So we tried to In energy, we tried to build 0:18:57.200 --> 0:19:02.240 as much supply as possible. What is also very important, 0:19:02.320 --> 0:19:06.200 not just supply, but transmission. I mean, one of one 0:19:06.240 --> 0:19:09.359 of our biggest developments right now and what we believe 0:19:09.680 --> 0:19:12.879 is critical to meet sort of this emergency is to 0:19:12.880 --> 0:19:16.240 build more transmission lines. I always like to say that, 0:19:17.359 --> 0:19:20.000 you know, if we build more trucks without roads, we're 0:19:20.040 --> 0:19:22.879 not going to deliver goods. So in order for electrons 0:19:22.920 --> 0:19:25.199 to move, we need transmission lines. And if we have 0:19:25.320 --> 0:19:30.560 transmission then we can shorten time to interconnect facility. We 0:19:30.680 --> 0:19:32.560