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Speaker 1: Now I'm Bloomberg with about the government. What are the

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Speaker 1: political reality The president has been increasingly frustrated. I want

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Speaker 1: to try to cut through the noise politically. This is devastating.

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Speaker 1: Sound off with Kevin, the insiders, the influencers, the insiders.

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Speaker 1: There is no secret that I care a lot about

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Speaker 1: the consumers. There are real questions about big tech. We

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Speaker 1: still have more leverage to me. As Britney's harraffs, I

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Speaker 1: the White House. Is sound on with Kevin's related on

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Speaker 1: Bloomberg one and one oh five point seven a m

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Speaker 1: h D two boltemole t g I f we made

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Speaker 1: it to Friday, folks. I was at the White House

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Speaker 1: earlier and President Trump declaring a national emergency. He says

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Speaker 1: that he's going to try to get eight billion dollars

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Speaker 1: for that border wall by declaring a national emergency emergency

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Speaker 1: and essentially told Democrats bring it on for the coming

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Speaker 1: legal battle that is sure to ensue. We're gonna break

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Speaker 1: down all of the politics and policy implications of that.

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Speaker 1: As President Trump averts a government shutdown but still declares

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Speaker 1: a national emergency and Edgerton Bloomberg News congressional reporter is

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Speaker 1: here with us for the hour in studio. Meanwhile, big

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Speaker 1: developments on trade. The President says he's open to kicking

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Speaker 1: the can down the road on that March first deadline

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Speaker 1: for China, where he says if he's not happy with

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Speaker 1: how negotiations are going, he will raise tariffs on billions

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Speaker 1: of dollars worth of Chinese goods coming into the US.

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Speaker 1: Mark ross Our, Chinese expert founder of Karical Global, also

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Speaker 1: with us to help break down trade talks and more

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Speaker 1: fallout from Amazon and their decision one day later to

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Speaker 1: remove their second headquarters from New York City. Congresswoman Alexandria

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Speaker 1: Acasio Cortez says that this is a win for her,

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Speaker 1: but is it? Congressman Caroline Maloney, Democrat from New York,

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Speaker 1: weighs in, but first, there is not going to be

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Speaker 1: a government shutdown. President Trump signing that government funding bill

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Speaker 1: that would keep the government open to avert that government shutdown.

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Speaker 1: It also gave him about one point three seven billion

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Speaker 1: dollars for the wall, plus an additional billion dollars or

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Speaker 1: so for a host of other things, including humanitarian efforts.

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Speaker 1: But the wall. The money in the wall only about

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Speaker 1: fifty five miles of wall building from that budget build

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Speaker 1: bipartisan budget bill that he was presented with, and that

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Speaker 1: is the reason why he said that he needed to

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Speaker 1: declare a national emergency. At the Rose Garden earlier this afternoon,

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Speaker 1: the President was joined by his new Attorney General, William Barr,

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Speaker 1: as well as Secretary Nielsen of the Department of Homeland Security,

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Speaker 1: as well as Angel Families as they're they're known. These

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Speaker 1: are the surviving family members of of UH of folks

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Speaker 1: who have lost loved ones to gang violence from gangs

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Speaker 1: UH with ties to to South America and Mexico. Here

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Speaker 1: with us to break down all of this is Anna Dreton,

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Speaker 1: Bloomberg News Congressional reporter And and it really doesn't come

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Speaker 1: as a surprise, does it, that that the President chose

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Speaker 1: to go this route. But what comes next? Yeah, this

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Speaker 1: is something we've been preparing for for a while, um,

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Speaker 1: kind of you know, digging up those Congressional Research Service

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Speaker 1: reports on a national emergency and what it means. Um.

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Speaker 1: So there's two options for the House of Representatives, which

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Speaker 1: is led by Democrats. They could either introduce a resolution

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Speaker 1: of disapproval, which we expect them to do, but we're

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Speaker 1: not quite sure about the timing, and that would be

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Speaker 1: a privileged revolution resolution that would go through the House

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Speaker 1: Judiciary Committee, would have to be voted on the floor

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Speaker 1: within fifteen days, and since it's privileged, it would have

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Speaker 1: to get a vote in the Senate. All I want

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Speaker 1: to get into the that in a second, because that's

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Speaker 1: really interesting because it could put actually Republicans in the

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Speaker 1: Senate ultimately in a very trick a key political position.

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Speaker 1: Let's come back to that and play forward the legal

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Speaker 1: to Congress. So that was the other option is to

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Speaker 1: pursue a lawsuit, and that would be the House General

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Speaker 1: Counsel that pursues that under the recommendation of who is

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Speaker 1: the House General Council. Is it a lawyer? Is it

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Speaker 1: a member? It's a lawyer. His last name is letters.

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Speaker 1: I think I just looked it up today. Um, there's

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Speaker 1: two routes for that. They could either go by the

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Speaker 1: or they could vote on the House floor to pursue

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Speaker 1: this lawsuit, which is what they did on January nine

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Speaker 1: to the Immigration for the Texas case against the Affordable

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Speaker 1: Care at right, okay, right, and then the other Okay.

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Speaker 1: So President Trump says, bringing on essentially, and and at

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Speaker 1: the end of this it's about an hour press conference. Uh,

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Speaker 1: we were all in the Rose Garden and and he

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Speaker 1: kind of well, I'll let him. I'm not going to

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Speaker 1: paraphrase President I think there's enough President Trump and personators

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Speaker 1: out there. But here is the President talking about the

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Speaker 1: legal battle. We will have a national emergency and we

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Speaker 1: will then be sued and they will sue us in

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Speaker 1: the Ninth Circuit even though it shouldn't be there, and

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Speaker 1: we will possibly get a bad ruling, and then we'll

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Speaker 1: get another bad ruling, and then we'll end up in

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Speaker 1: the Supreme Court, and hopefully we'll get a fair shake

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Speaker 1: and we'll win in the Supreme Court. I mean, I mean,

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Speaker 1: it's like legal announces with President drop in the Rose Garden.

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Speaker 1: Even when he was saying that anna, I mean, and

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Speaker 1: we're all in here. I mean he he essentially is

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Speaker 1: saying bring it on. Yeah. And I spoke with some

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Speaker 1: of Representatives, and they were saying that the President ultimately

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Speaker 1: decided to pursue this as he became more confident in

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Speaker 1: his legal case, he has been advised by his legal

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Speaker 1: advisors that he has a good chance of defeating this

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Speaker 1: in court, in part because the National Emergency Statute does

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Speaker 1: give the executive branch pretty broad power in this. And Edgerton,

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Speaker 1: Bloomberg News congressional reporter breaking down all of the legal

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Speaker 1: jargon for us here on this Friday afternoon. Uh, and Annah,

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Speaker 1: this has been the White House's play all along. I

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Speaker 1: talking to senior senior administration official who essentially said, give

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Speaker 1: us whatever Congress gives us, that's not going to stop

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Speaker 1: us from from from from trying to pursue other avenues

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Speaker 1: of money. Gavin Newsom, though a Democrat, Well he's he says,

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Speaker 1: you know, lawyer up, take a listen with gavenues some medicine.

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Speaker 1: He's been embarrassed and his base needs to be fed.

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Speaker 1: And as a consequence of that, he's impacting the lives

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Speaker 1: of millions and millions of Californians and millions and millions

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Speaker 1: of Americans that demand and deserve better. We'll see you

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Speaker 1: in court. We'll see you in court. That's Gavin newsommocratic

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Speaker 1: Governor of California. Okay, so Anna, that's we talked about

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Speaker 1: the legal proceedings. But now get really into the weeds here,

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Speaker 1: because a lot of Republicans that you and I talked

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Speaker 1: to are uneasy about the declaration of a national emergency,

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Speaker 1: people like Senators Lindsey Graham, Marco Rubio, behind the scenes

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Speaker 1: Leader Mitch McConnell. Why it comes down to this, this

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Speaker 1: resolution in the House that could come to the Senate,

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Speaker 1: but like spell it out for us in plane speak. Yeah. Actually,

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Speaker 1: most interesting elements of yesterday. The fact that he came

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Speaker 1: out and he said I'm behind this, That to me

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Speaker 1: sounded like a total political calculation that he knew that

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Speaker 1: Trump wasn't gonna be happy with the spending deal, his

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Speaker 1: base wasn't gonna be happy, so he decided to kind

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Speaker 1: of bite the bullet and support of constitutionally questionable emergency declaration.

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Speaker 1: So the legal challenge would be based on who the

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Speaker 1: Constitution gives authority to appropriate money on an Article one

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Speaker 1: of the Constitution, That is Congress's responsibility. So the problem

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Speaker 1: with this emergency declaration is not that the president's doing it,

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Speaker 1: but that he's trying to get around a congressional process

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Speaker 1: that the Constitution gives to Congress. If he's choosing taxpayer

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Speaker 1: money for a purpose that Congress didn't intend, that is

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Speaker 1: constitutionally questionable. And Republicans always make the case. I mean

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Speaker 1: they like having the power of the purse. They don't.

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Speaker 1: They don't want, you know, other forms of government or

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Speaker 1: other branches of government rather to have that. It's a

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Speaker 1: fascinating Republican sort of wank war that's being waged inside

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Speaker 1: of the Republican Party. Much more on that with Anna

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Speaker 1: Edgerton coming up, as well as Mark Ross, founder of

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Speaker 1: Erical Global, because we'll discuss the latest developments on the

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Speaker 1: US China trade deal. Remember, folks, you can download the

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Speaker 1: Sound On podcast on Apple iTunes, at Bloomberg dot com

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Speaker 1: or by downloading my favorite app, the Bloomberg Business App.

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Speaker 1: You can also find us on Radio dot com and

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Speaker 1: on I Heart Radio on Kevin Cirelli. You're listening to Bloomberg.

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Speaker 1: This is Sound On with Kevin Cyrilling on Bloomberg m

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Speaker 1: h D two Baltimore. So what I'm thinking of doing

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Speaker 1: is getting Chuck Schumer, getting Nancy Pelosi, having them bring

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Speaker 1: two or three of their brilliant representatives, and we'll all

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Speaker 1: go down together. And what we'll do is will negotiate.

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Speaker 1: I'll put them in the room and let them speak up.

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Speaker 1: That was President Trump earlier today speaking at the press

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Speaker 1: conference in the Rose Garden, where he said he's going

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Speaker 1: to invite Democrats maybe to meet with a Chinese delegation

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Speaker 1: when he meets ultimately with President She of China. No

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Speaker 1: word yet on when that meeting with President She and

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Speaker 1: President Trump will take place. But we did get some

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Speaker 1: new development this week in terms of the US China

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Speaker 1: trade policy, which is why I'm so glad that Anna Edgerton,

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Speaker 1: as well as Mark Ross, founder of Chical Global, a

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Speaker 1: global consulting thought leader firm here in Washington, d C.

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Speaker 1: Mark is also the former communications director for the U S.

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Speaker 1: China Business Council. And Mark, we did get a lot

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Speaker 1: of new type of developments, most notably that the Chinese

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Speaker 1: the traders, as President Trump calls them, the trader, that

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Speaker 1: the traders, UH Treasury Secretary Stephen Monution and US Trade

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Speaker 1: Representative Bob Ladheiser. They were in China this week. They're

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Speaker 1: coming back positive language around their negotiations, and now we're

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Speaker 1: getting word from the White House and President Trump that

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Speaker 1: they will be meeting with Chinese officials here in Washington,

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Speaker 1: d C. Next week. Now, the only thing the business

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Speaker 1: community cares about is March first, because that is when

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Speaker 1: the President has said he would essentially raise tariffs on

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Speaker 1: Chinese imports, additional tariffs uh on on really what he's

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Speaker 1: already tariff, and the new ones as well. He was

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Speaker 1: asked Mark, Well, first of all, Mark, what do you

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Speaker 1: make of sort of where we're at on Friday afternoon

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Speaker 1: heading into next week with the Chinese delegation coming to Washington. Well,

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Speaker 1: I think the challenges if you listen to Trump, you know,

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Speaker 1: he says one thing, things are going well, but he

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Speaker 1: also said whatever that means, which I thought maybe the

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Speaker 1: most honest thing he said as president. And then if

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Speaker 1: you listen to folks at USTR Department of Treasury, you

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Speaker 1: really have a divide within Team Trump on what a

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Speaker 1: good deal is, what should happen. So I think the

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Speaker 1: fact that we're still talking with the Chinese is positive.

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Speaker 1: It looks like we're gonna move the March first deadline

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Speaker 1: to a later date. So everything I would say is positive,

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Speaker 1: but still, to be totally honest, nothing has really changed

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Speaker 1: in the last sixty days. I'm glad you brought up

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Speaker 1: that that pushing back the deadline. Take a listen to

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Speaker 1: what President Trump said directly when I asked about that

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Speaker 1: March first deadline. There is a possibility that I will

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Speaker 1: extend and the day. And if I do that, if

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Speaker 1: I see that we're close to a deal or the

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Speaker 1: deal is going in the right direction, I would do

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Speaker 1: that at the same tariffs at we're judging now, I

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Speaker 1: would not increase the tariffs. So if you're in the

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Speaker 1: business community, a lot of folks are trying to plan

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Speaker 1: for the fourth quarter, trying to forecast into their into

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Speaker 1: their business bottom lines. How tariffs are going to factor

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Speaker 1: into that? What do you what do you read off about? Yeah,

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Speaker 1: I think he clearly saying, listen, the tariffs are not

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Speaker 1: going to increase that much. First, We're gonna go forward.

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Speaker 1: Things are moving forward. I think he's saying you did

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Speaker 1: not interrupt, but to interrupt. You think he's clearly saying

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Speaker 1: that that he's forecasting that he is not going to

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Speaker 1: raise those tariffs. I think the most importantly average from

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Speaker 1: Trump is that he feels that we're having a respect

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Speaker 1: deal with the president. She. So just logistically looking at

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Speaker 1: the time frame, the only time that that is going

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Speaker 1: to happen is probably May or June of this year,

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Speaker 1: just because of the geopolitical calendar. So you have to

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Speaker 1: think that's gonna get kicked down the camp to six days. Clearly,

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Speaker 1: Trump needs a deal of some magnitude that he needs

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Speaker 1: more time because the challenges the tariffs, frankly are an

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Speaker 1: issue for certain segments of the business economy, but the

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Speaker 1: bigger macro issues are the state owned enterprise issues, intellectual

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Speaker 1: property rights, enforcement of law within Shana. Those are big

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Speaker 1: issues and frankly days whatever it is, uh, more time

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Speaker 1: is needed. Let's come back to the state enterprise issues

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Speaker 1: in a second. So hold that thought. But Anna and

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Speaker 1: Andreton Bloomberg's congressional reporter chucking Nancy and Trump heading the

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Speaker 1: Beijing for for a meeting of president. She ought to

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Speaker 1: be a fly on the wall, and that is this

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Speaker 1: really realistic? Probably not it almost sounded like he was

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Speaker 1: coming up with this idea as he was speaking, or

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Speaker 1: he thought it before. He never said it out loud.

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Speaker 1: But I have to say, if I were negotiating with

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Speaker 1: She's maybe maybe he saw how the shutdown played out.

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Speaker 1: But but I'm struck. I mean, I think it does.

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Speaker 1: I mean, from from Marks to Mark's point, there really

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Speaker 1: is a lot of consensus, a nonpartisan consensus on issues

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Speaker 1: pertaining to intellectual property, theft as well as the I

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Speaker 1: would argue, even to some extent, the state owned subsidies

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Speaker 1: for China and national security cybersecurity issues as well. Whether

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Speaker 1: or not the Democrat think that that that it would

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Speaker 1: be wise for them to be on Air Force one

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Speaker 1: with President Trump and head over to Beijing or wherever

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Speaker 1: it is, down to marl Lago. Uh, you know, I'm

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Speaker 1: not sure. Well, Kevin, you and I have talked about

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Speaker 1: before how trade is just the issue that, more than

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Speaker 1: anything else, scrambles ideological lines. But it's just been so

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Speaker 1: interesting to follow over the past year, especially with um

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Speaker 1: Paul Ryan is Speaker of the House. You could just see,

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Speaker 1: like you know, Chamber of Commerce heads exploding when you

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Speaker 1: when you're seeing you know, Paul Ryan having to defend

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Speaker 1: Trump's trade policy, and they're kind of pretending that he

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Speaker 1: is this um free market guy who uses tariffs as

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Speaker 1: a tool to get to where he wants to go.

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Speaker 1: And then he comes out today says, remember, I love tariffs,

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Speaker 1: So yeah, we actually have that. But take a listen

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Speaker 1: to President Trump reminding us that he's tariff man. Tariffs

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Speaker 1: are hurting China very badly. They don't want him, and frankly,

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Speaker 1: if we can make the deal and be my honor

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Speaker 1: to remove them, but otherwise we're having many billions of

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Speaker 1: dollars pouring into our treasury. We've never had that before

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Speaker 1: with China. It's been very much of a one way street.

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Speaker 1: He likes tariffs, but the Chamber of Commerce does not

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Speaker 1: like tariffs. He also shaded Speaker Paul Ryan. Kelly o'donald

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Speaker 1: from NBC was asked that question and she was like,

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Speaker 1: Speaker Ryan, I mean, you're mad at him. But so

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Speaker 1: there's some interesting, as you mentioned, ideological scrambles coming up.

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Speaker 1: We're gonna have more on trade, more on the shutdown,

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Speaker 1: but also we're gonna talk Amazon because this story as

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Speaker 1: as you and I were saying, and it really touches

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Speaker 1: every everything, all all sectors. So we'll hear from Congresswoman

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Speaker 1: Alexandria Cassio Cortez and more from Caroline Maloney, the Democrat,

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Speaker 1: from both Democrats from New York. Remember check us out

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Speaker 1: on Apple iTunes, at Bloomberg dot com or get the

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Speaker 1: Bloomberg Business app. You can also find us on radio

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Speaker 1: dot com and on the I Heart Radio app. But

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Speaker 1: not just the sound on show, but also all of

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Speaker 1: our great work from from our radio colleagues here at

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Speaker 1: Bloomberg Radio. I'm Kevin Sirelli. You're listening to Bloomberg Is

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Speaker 1: Sound On with Kevin Surreally on Bloomberge and one oh

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Speaker 1: five point seven F M h D two Baltimore. Welcome back.

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Speaker 1: I'm Kevin Stirley. Happy Friday, t G I F busy

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Speaker 1: busy Friday. At the White House, President Trump in the

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Speaker 1: Rose Garden having that press conference saying that he's declaring

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Speaker 1: a national emergency to try to get more money for

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Speaker 1: the wall. He wants about eight billion dollars. The budget

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Speaker 1: agreement that he's signing to avert that government shutdown only

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Speaker 1: gives him about one point three seven billion, but no

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Speaker 1: government shutdown, setting up a legal fight for the UH

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Speaker 1: that we'll go through the courts. Both Democrats say they're

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Speaker 1: ready for the fight. President Trump says he's ready for

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Speaker 1: the fight. Other big story accords US China trade news.

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Speaker 1: The Chinese are going to send a delegation here in

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Speaker 1: Washington next week, so that next week we should get

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Speaker 1: even more trade developments. This off of positive rhetoric coming

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Speaker 1: from the White House on how Treasury Secretary Manution and

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Speaker 1: US Trade Representative Bob Lightheuser at the Traders, as President

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Speaker 1: Trump refers to them, had their meetings in Beijing this week,

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Speaker 1: So more meetings next week. The President flexible, he says

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Speaker 1: at that press conference on delaying that March first tariff

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Speaker 1: increase that he had threatened with. But the other big

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Speaker 1: story is Amazon Alexa. Is Amazon going to New York City? Ever? No, essentially,

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Speaker 1: is what we're hearing from Jeff Bezos, the fallout. Continuing

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Speaker 1: my panel with me and Edgarton, Bloomberg News congressional reporter

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Speaker 1: and Mark Ross, founder of Terrical Global. Mark, you were

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Speaker 1: also you're also on the soccer board the US Soccer Foundation. Correct.

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Speaker 1: It's a nonprofit that organizes after school programs for underserved

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Speaker 1: communities to play more soccer. It's a wonderful organization. That's awesome.

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Speaker 1: So I was a high school teacher in California, the

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Speaker 1: women's soccer coach for our high school, and decided I

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Speaker 1: wanted to be a foreign correspondent so that I could

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Speaker 1: get someone to pay me to go to the World Cup.

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Speaker 1: So I was, in fact a correspondent in Brazil during

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Speaker 1: the World Hover. Who did you cover Brazil? Amazing for Bloomberg?

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Speaker 1: You were to be a Brasil Well, I'm mad that

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Speaker 1: you got to cover the World Cup for Bloomberg. Jealous.

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Speaker 1: I also had to cover, like, you know, tariff increases

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Speaker 1: for Brazilian electricity companies. You got to go to soccer games. Yeah,

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Speaker 1: it was cool. That's awesome. So I I was a

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Speaker 1: soccer I mean, I come from a soccer family. Uh,

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Speaker 1: and my my sisters are much better at soccer than

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Speaker 1: I ever was. But I played soccer in my whole life.

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Speaker 1: As you know, Mark, you when we went to the

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Speaker 1: Pay the Summer and people thought you were Steve Bennett. Correct, Okay,

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Speaker 1: back to Amazon, Um, you're not Steve Bennett. Okay, I

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Speaker 1: don't see it. Um. But but this Amazon news and

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Speaker 1: you cover the house. I mean it's divided Democrats in

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Speaker 1: New York congresswomen. Essentially what happened was Amazon says they're

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Speaker 1: opening headquarters here in northern Virginia, that they also are

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Speaker 1: going to have headquarters to h Q two in New

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Speaker 1: York City. And then like this was three months ago,

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Speaker 1: and then every city in America wanted wanted this. Philly

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Speaker 1: where I grew up, wanted it. Delko literally my hometown

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Speaker 1: wanted it, Chicago wanted it. Um, everyone wanted it. And

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Speaker 1: so they decide on New York City. And then the progressives, right,

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Speaker 1: I mean, it was really just progressives who came out

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Speaker 1: forcefully against this, and Congress froman Alexandria Acascio Cortez made

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Speaker 1: the case and successfully one, that they were being subsidized,

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Speaker 1: that Amazon was being subsidized off the backs of you know,

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Speaker 1: teachers and firefighters and infrastructure projects. And Amazon just essentially said, well, okay,

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Speaker 1: we're not We're not going to go through this. If

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Speaker 1: you don't want us here, we're not gonna do it. Uh.

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Speaker 1: I want to play for you AOC sound bite from

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Speaker 1: earlier and then get your your take on a Dana,

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Speaker 1: here's AOC which we're willing to give away three billion

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Speaker 1: dollars for this deal. We could invest those three billion

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Speaker 1: dollars in our district ourselves if we wanted to. We

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Speaker 1: could hire out more teachers, we can fix our subways,

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Speaker 1: we can put a lot of people to work. What's

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Speaker 1: the fallout for her today or is there any Yeah,

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Speaker 1: it's it's been a fascinating story and I was kind

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Speaker 1: of reading up on it today after being in spending

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Speaker 1: bill Land for most of the week, and it's it's

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Speaker 1: kind of like at the juncture of so many things

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Speaker 1: happening in our economy and our culture, where we're looking

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Speaker 1: at the role that the responsibility that corporations have to

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Speaker 1: pay their employees a living wage. What responsibilities do local

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Speaker 1: governments have to attract corporations or to construct construct a

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Speaker 1: package that's attractive to to bring them there, to get

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Speaker 1: more tax revenue, to create more jobs, but maybe to

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Speaker 1: forego um some of the tax revenue that they would

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Speaker 1: get from economic activity that's crowded out by having such

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Speaker 1: a behemoth in the community. So it's been really interesting

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Speaker 1: to see. She did kind of on Twitter try to

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Speaker 1: push back that she was the one responsible for this.

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Speaker 1: She said it was the grassroots people that see I

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Speaker 1: saw that, and that to me, I mean, it's one

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Speaker 1: thing to try to get a better deal. It's an

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Speaker 1: entirely different thing to have twenty five jobs. You might

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Speaker 1: not agree with it no longer. Okay, they're not going

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Speaker 1: to be there. That's right, and you know it's There

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Speaker 1: was also a question of what the people in the

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Speaker 1: community wanted and whether or not these were progressive activists

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Speaker 1: coming in from the outside saying Amazon shouldn't be occupying

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Speaker 1: this part of Queens and when the local some of

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Speaker 1: the local people say yes, we want that economic asivity here,

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Speaker 1: others were saying no, we are afraid of gentrification and

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Speaker 1: being pushed out of our community. From your reporting and

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Speaker 1: from your you know, every staffer on Capitol Hill. If

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Speaker 1: this is her biggest accomplishment, so to speak, does this

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Speaker 1: hurt her or help her in the long run? It

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Speaker 1: certainly increases her profile. But I would be careful about

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Speaker 1: putting this entirely on her because I think this is

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Speaker 1: she's kind of the the front man. Yeah, she's exactly

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Speaker 1: she's but is a front man for this kind of

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Speaker 1: new progressive energy that we're gonna see yeah that too,

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Speaker 1: she I mean right and cretic socialist. Um. But you know,

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Speaker 1: we're going to see this in the campaign, and we're

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Speaker 1: going to see this in economic policies that are introduced

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Speaker 1: and moved through Congress. And it is not just about

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Speaker 1: one member of Congress, even though she might be the

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Speaker 1: most vocal. This isn't her. I mean, we agree, I agree,

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Speaker 1: but this is in her district. This, I mean, this

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Speaker 1: is her, This is her geography, actually not her note,

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Speaker 1: but it impacts, but it touches her district. So this

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Speaker 1: is her localized issue. Coming up, I'm going to play

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Speaker 1: for you more my Bloomberg Television and interview with Congresswoman

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Speaker 1: Caroline Maloney because she was justice fired up this morning

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Speaker 1: as she was last night on our show. Uh, so

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Speaker 1: we're gonna talk. We're gonna stay with Amazon coming up,

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Speaker 1: and Mark, I want to get your take on it

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Speaker 1: as well, because Amazon having the global now and what

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Speaker 1: that means for other companies who are thinking about, you know,

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Speaker 1: having a bidding war essentially around the world to to

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Speaker 1: have a new headquarters. It's it's fascinating anyway you look

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Speaker 1: at it. Where you no matter where you fall on

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Speaker 1: this issue. It is a fascinating, fascinating issue. Panel stays.

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Speaker 1: Download the Sound John podcast on Apple iTunes, at Bloomberg

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Speaker 1: dot com or by downloading the Bloomberg Business app and

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Speaker 1: check us out on Radio dot com and on iHeart Radio.

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Speaker 1: I'm Kevin Cereli. It's Friday, folks. We made it three

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Speaker 1: day weekend. You're listening to Bloomberg. This is Sound On

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Speaker 1: with Givin's You Related on Bloomberg one and one oh

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Speaker 1: five point seven F M H D two Boltomore Welcome back,

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Speaker 1: T G I F. We're talking shutdown, no shutdown. President

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Speaker 1: Trump declares a national emergency. He's going to set up

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Speaker 1: this legal fight now. Democrats are likely going to sue.

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Speaker 1: President Trump says, bring it on in terms of the courts.

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Speaker 1: UH trade. Other big story of today Chinese sending a

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Speaker 1: delegation next week here in Washington to continue trade talks

430
00:25:05,400 --> 00:25:09,840
Speaker 1: with Treasury Secretary Revolution and US Trade Representative Bob Leitheizer.

431
00:25:10,200 --> 00:25:12,840
Speaker 1: They were in China this week. The President says he's

432
00:25:12,920 --> 00:25:16,240
Speaker 1: open to kicking the can down the road a little

433
00:25:16,240 --> 00:25:19,439
Speaker 1: bit if the trade talks are going well. He's open

434
00:25:19,680 --> 00:25:23,960
Speaker 1: to extending that deadline of a tariff increase against Chinese

435
00:25:23,960 --> 00:25:27,960
Speaker 1: goods on March first. But the other big story this week, massive,

436
00:25:28,040 --> 00:25:32,040
Speaker 1: massive story is Amazon and just how it impacts the

437
00:25:32,119 --> 00:25:37,640
Speaker 1: business community, UH, the political landscape of populism, the rise

438
00:25:37,680 --> 00:25:42,200
Speaker 1: of democratic socialism UH and and and corporate America really

439
00:25:42,240 --> 00:25:45,960
Speaker 1: caught up in in all of this, Amazon, of course,

440
00:25:46,280 --> 00:25:48,879
Speaker 1: had decided that they are no longer going to go

441
00:25:48,920 --> 00:25:52,399
Speaker 1: ahead with their plans to open HQ two, their second

442
00:25:52,400 --> 00:25:58,560
Speaker 1: headquarters in New York City, and it's gotten so much reaction.

443
00:25:58,640 --> 00:26:05,280
Speaker 1: Governor Cuomo UH coming out criticizing are really frustrated at

444
00:26:05,359 --> 00:26:07,439
Speaker 1: some folks within his own party because of this, as

445
00:26:07,440 --> 00:26:10,680
Speaker 1: well as New York City Mayor the Blasio. I want

446
00:26:10,680 --> 00:26:12,879
Speaker 1: to read the headline from the Associated Press to the

447
00:26:12,920 --> 00:26:16,800
Speaker 1: panel and Edrelton Bloomberg News congressional reporter Mark Ross, founder

448
00:26:16,840 --> 00:26:21,240
Speaker 1: of Terriical Global. Terrical Global specializes and thought leader communications

449
00:26:21,240 --> 00:26:25,399
Speaker 1: for business executives working at the intersection of globalization, disruption,

450
00:26:25,800 --> 00:26:29,320
Speaker 1: and politics. It's like Amazon. This is like the Amazon story,

451
00:26:29,560 --> 00:26:32,800
Speaker 1: like the guy, but in the AP says New York

452
00:26:32,840 --> 00:26:37,320
Speaker 1: City papers view Amazon deals collapse as an embarrassment. The

453
00:26:37,400 --> 00:26:42,440
Speaker 1: Daily News quote, so called progressives just killed twenty five

454
00:26:42,600 --> 00:26:46,000
Speaker 1: thousand to forty thousand high quality jobs coming to New

455
00:26:46,080 --> 00:26:50,320
Speaker 1: York City. The New York Post quote. Amazon's decision to

456
00:26:50,400 --> 00:26:52,920
Speaker 1: drop its New York City expansion plan is a loss

457
00:26:52,960 --> 00:26:56,000
Speaker 1: for this city and for the company, with lessons for

458
00:26:56,119 --> 00:26:59,480
Speaker 1: both sides and for the politicians who brokered the now

459
00:27:00,000 --> 00:27:05,359
Speaker 1: old deal. The New York Times quote, quoting Doblas, The

460
00:27:05,400 --> 00:27:07,359
Speaker 1: New York Times says, what a strange thing for the

461
00:27:07,400 --> 00:27:10,359
Speaker 1: mayor to take pride in. It's certainly true that you

462
00:27:10,400 --> 00:27:12,879
Speaker 1: have to be tough these days, but that's because the

463
00:27:12,920 --> 00:27:16,680
Speaker 1: subways don't work, the streets are gridlocked, the housing is unaffordable,

464
00:27:16,720 --> 00:27:18,840
Speaker 1: the shelters are overcrowded. While you get the point. The

465
00:27:18,840 --> 00:27:22,520
Speaker 1: Wall Street Journal. After getting mauled by a mob of

466
00:27:22,720 --> 00:27:26,639
Speaker 1: unions and politicians, tough rhetoric from the Wall Street Journal,

467
00:27:26,960 --> 00:27:30,399
Speaker 1: Amazon on Thursday canceled plans to build a second headquarters

468
00:27:30,440 --> 00:27:34,960
Speaker 1: in New York. I mean and a and we were

469
00:27:34,960 --> 00:27:38,800
Speaker 1: talking in the break just about the divide right now

470
00:27:39,600 --> 00:27:45,120
Speaker 1: from a New York City Democrats between Alexandria Alexandria Cassio Cortez,

471
00:27:46,200 --> 00:27:49,720
Speaker 1: who is saying, why should a company like Amathon, Amazon

472
00:27:49,840 --> 00:27:54,239
Speaker 1: of that size get special business advantages when there are

473
00:27:54,280 --> 00:27:57,280
Speaker 1: so many problems in New York City versus the other

474
00:27:57,400 --> 00:28:03,920
Speaker 1: competing ideology from Congresswoman Carolyn Maloney, who this directly impacts her,

475
00:28:04,320 --> 00:28:08,320
Speaker 1: her district, her constituents. I interviewed her again for Bloomberg Television.

476
00:28:08,760 --> 00:28:10,439
Speaker 1: Here's what she had to say to me this morning.

477
00:28:11,119 --> 00:28:13,320
Speaker 1: But if you did not like the tax rebate, you

478
00:28:13,359 --> 00:28:17,119
Speaker 1: could start negotiating to try to change it. Instead of

479
00:28:17,200 --> 00:28:19,840
Speaker 1: just saying no, get out of here, try to work

480
00:28:19,920 --> 00:28:24,280
Speaker 1: to make whatever the objection is better. Obviously we would

481
00:28:24,280 --> 00:28:28,320
Speaker 1: have had to modernize and upgrade our transit system, but

482
00:28:28,400 --> 00:28:30,959
Speaker 1: that could have been a benefit for the entire region.

483
00:28:32,320 --> 00:28:35,959
Speaker 1: So that was Congresswoman Maloney, who essentially her point is

484
00:28:36,520 --> 00:28:39,200
Speaker 1: why not negotiate AOC? Yeah, and I think that's gonna

485
00:28:39,240 --> 00:28:43,120
Speaker 1: have repercussions beyond Amazon. If you're any big company who's

486
00:28:43,120 --> 00:28:46,760
Speaker 1: trying to pick another headquarters, are at place to expand

487
00:28:46,960 --> 00:28:49,840
Speaker 1: you're gonna look at this example and be very wary

488
00:28:49,920 --> 00:28:52,200
Speaker 1: of what is going on in New York in terms

489
00:28:52,200 --> 00:28:55,160
Speaker 1: of the political dynamic, the activism going on there. And

490
00:28:55,200 --> 00:28:58,600
Speaker 1: not that it's a bad thing to question this kind

491
00:28:58,640 --> 00:29:02,840
Speaker 1: of package for corporations, I think we should question to

492
00:29:03,000 --> 00:29:07,040
Speaker 1: what degree we're practicing capitalism. Who's benefiting wire local governments

493
00:29:07,280 --> 00:29:10,920
Speaker 1: giving subsidies to big corporations. But this is gonna be

494
00:29:11,000 --> 00:29:14,080
Speaker 1: something that other companies are going to take into account. Yeah,

495
00:29:14,080 --> 00:29:16,400
Speaker 1: I think you have a situation now where politics is

496
00:29:16,440 --> 00:29:21,080
Speaker 1: being overrun by personality kind of feel good economics. Certainly

497
00:29:21,120 --> 00:29:23,560
Speaker 1: the boardrooms around the country are not gonna be immune

498
00:29:23,560 --> 00:29:26,600
Speaker 1: from this, and I think frankly, CEOs and executives have

499
00:29:26,640 --> 00:29:29,720
Speaker 1: to take a more for looking engagement. They've got to

500
00:29:29,720 --> 00:29:33,800
Speaker 1: speak to more people, different brackets of society, different economic groups,

501
00:29:33,800 --> 00:29:36,320
Speaker 1: and really make the case like we're investing in the future.

502
00:29:36,360 --> 00:29:39,680
Speaker 1: This isn't about a short term situation. I mean Amazon

503
00:29:39,800 --> 00:29:41,960
Speaker 1: is making a bet like this, This is a thirty

504
00:29:42,000 --> 00:29:44,640
Speaker 1: year old bet to get involved in New York and

505
00:29:44,720 --> 00:29:47,760
Speaker 1: what the you know. I think the local constituents, the

506
00:29:47,800 --> 00:29:51,120
Speaker 1: Long Island City citizens have done a great job of

507
00:29:51,160 --> 00:29:54,320
Speaker 1: stopping the future. But this is really not the most

508
00:29:54,320 --> 00:29:56,480
Speaker 1: wonderful thing, and I think it's gonna really seep around.

509
00:29:56,520 --> 00:29:57,960
Speaker 1: And I don't think this is an issue that's gonna

510
00:29:57,960 --> 00:30:00,440
Speaker 1: go away anytime soon. But it really legitimate shition that

511
00:30:00,520 --> 00:30:04,320
Speaker 1: Alexander Casto Cortez and other progressive had been asking is

512
00:30:04,480 --> 00:30:07,880
Speaker 1: why should the government be paying for food stamps for

513
00:30:07,920 --> 00:30:11,280
Speaker 1: employees of companies like Amazon and Walmart? If you're employed

514
00:30:11,280 --> 00:30:14,760
Speaker 1: by a company that is outrageously profitable, you should be

515
00:30:14,800 --> 00:30:17,880
Speaker 1: making a living wage. So I think that's a legitimate

516
00:30:17,960 --> 00:30:21,600
Speaker 1: question to ask, why should the government be subsidizing workers

517
00:30:21,600 --> 00:30:24,240
Speaker 1: who can't earn enough time? And this is the fight,

518
00:30:24,840 --> 00:30:27,840
Speaker 1: This are the These are the battle lines, right, that

519
00:30:27,840 --> 00:30:31,760
Speaker 1: that cut across party lite that similarly to trade that

520
00:30:31,920 --> 00:30:35,920
Speaker 1: that scramble sort of the mix because it is a

521
00:30:35,920 --> 00:30:39,480
Speaker 1: local issue first and foremost, but it's also a global one.

522
00:30:39,640 --> 00:30:44,200
Speaker 1: And if we've seen some in the Obama administration, critics

523
00:30:44,240 --> 00:30:47,720
Speaker 1: on the right and the left, when Apple uh decided

524
00:30:47,800 --> 00:30:51,920
Speaker 1: to you know, move some tax things happening to Ireland,

525
00:30:51,920 --> 00:30:54,560
Speaker 1: I believe uh. And so it's not this is but

526
00:30:54,760 --> 00:30:59,880
Speaker 1: this feels different in the new cult of personality political

527
00:31:00,040 --> 00:31:03,040
Speaker 1: era that we live in. And Mark take us it,

528
00:31:03,160 --> 00:31:05,840
Speaker 1: put on your charical global hat for us. What do

529
00:31:05,920 --> 00:31:10,240
Speaker 1: you tell a CEO or a leader, what what is

530
00:31:10,240 --> 00:31:14,880
Speaker 1: the lesson to learn about how to navigate this moment

531
00:31:15,120 --> 00:31:19,400
Speaker 1: in time when you have the politics and the policy

532
00:31:19,560 --> 00:31:23,480
Speaker 1: really at in a firestorm. Yeah, we have a good

533
00:31:23,480 --> 00:31:27,000
Speaker 1: We basically have a bifurcating society. We have a high wage,

534
00:31:27,200 --> 00:31:30,080
Speaker 1: knowledge based economy that we definitely need to invest in.

535
00:31:30,560 --> 00:31:33,760
Speaker 1: We also have a group of citizens that have lower

536
00:31:33,800 --> 00:31:37,280
Speaker 1: skills that also need employment. The middle classes shrinking, which

537
00:31:37,280 --> 00:31:40,880
Speaker 1: is putting pressure overall on the kind of voters of America.

538
00:31:41,400 --> 00:31:43,520
Speaker 1: U My advice to c e O s is you

539
00:31:43,560 --> 00:31:45,440
Speaker 1: really have to make the case. We really have to

540
00:31:45,440 --> 00:31:49,320
Speaker 1: start thinking globally right and thinking that this isn't just

541
00:31:49,480 --> 00:31:53,240
Speaker 1: about creating economic wealth in the city, in your community.

542
00:31:53,240 --> 00:31:55,040
Speaker 1: We're really trying to strengthen the country. When you make

543
00:31:55,080 --> 00:31:58,360
Speaker 1: these kind of big bets as a company, um, you

544
00:31:58,400 --> 00:32:00,360
Speaker 1: have to do a better job of explaining that with

545
00:32:00,480 --> 00:32:05,040
Speaker 1: the biggest challenges. Most Americans don't think about the global impact.

546
00:32:05,120 --> 00:32:07,280
Speaker 1: They don't have the wherewithal, and they haven't been exposed

547
00:32:07,360 --> 00:32:09,120
Speaker 1: kind of these global trends. They just know what they

548
00:32:09,160 --> 00:32:12,160
Speaker 1: know based on their checkbook, and there kind of daily

549
00:32:12,200 --> 00:32:14,160
Speaker 1: laves and that's struble. Well, you also have to look

550
00:32:14,200 --> 00:32:16,400
Speaker 1: at cities and think who can afford to live there

551
00:32:16,480 --> 00:32:19,240
Speaker 1: right now, and a lot of cities there's not affordable housing,

552
00:32:19,320 --> 00:32:22,120
Speaker 1: and it's as a problem to to look at it

553
00:32:22,120 --> 00:32:24,040
Speaker 1: in a society of less in a minute, but I

554
00:32:24,040 --> 00:32:26,160
Speaker 1: do want to get this question in what is what's

555
00:32:26,200 --> 00:32:28,600
Speaker 1: the rub and in the halls of Congress at the

556
00:32:28,600 --> 00:32:32,280
Speaker 1: staff level, in terms of how the democratic situation in

557
00:32:32,280 --> 00:32:34,760
Speaker 1: New York is playing out. On one thing I'm really

558
00:32:34,760 --> 00:32:37,240
Speaker 1: gonna be watching is coalition building. And you have some

559
00:32:37,400 --> 00:32:42,040
Speaker 1: very strong progressives. There are four young progressive women who

560
00:32:42,280 --> 00:32:46,400
Speaker 1: are who stick together on different issues, and it's going

561
00:32:46,440 --> 00:32:48,160
Speaker 1: to be interesting to see if they can build a

562
00:32:48,160 --> 00:32:51,120
Speaker 1: coalition or if they're acting on their own. Fascinating, and

563
00:32:51,160 --> 00:32:53,960
Speaker 1: you'll be back on to tell us about all of that.

564
00:32:54,040 --> 00:32:56,880
Speaker 1: I want to thank our panel and adgertand Boomberg News

565
00:32:57,040 --> 00:33:00,920
Speaker 1: congressional reporter and Mark Ross, founder of Kara Global. Check

566
00:33:01,000 --> 00:33:04,520
Speaker 1: us out on the Bloomberg Business at iTunes radio dot

567
00:33:04,520 --> 00:33:07,400
Speaker 1: com and on i Heart Radio. Have a great holiday weekend.

568
00:33:07,440 --> 00:33:10,400
Speaker 1: Everyone join us next week more on trade. I'm Kevin

569
00:33:10,400 --> 00:33:12,000
Speaker 1: CURRELLI you're listening to Bloomberg