1 00:00:02,520 --> 00:00:08,800 Speaker 1: Bloomberg Audio Studios, podcasts, radio news, Wall Street's biggest banks 2 00:00:08,880 --> 00:00:11,760 Speaker 1: looking for some clarity on policy. JP Morgan's Jamie Timon 3 00:00:11,880 --> 00:00:14,360 Speaker 1: urging Trump to start talks with China and telling the 4 00:00:14,440 --> 00:00:17,440 Speaker 1: ft quote, we should be careful. I don't think anyone 5 00:00:17,480 --> 00:00:19,720 Speaker 1: should assume they have a divine right to success and 6 00:00:19,760 --> 00:00:22,520 Speaker 1: therefore don't worry about it. Joining us now to discuss 7 00:00:22,560 --> 00:00:25,880 Speaker 1: the former Republican House Majority leader Eric Cancer. Eric, welcome 8 00:00:25,920 --> 00:00:27,600 Speaker 1: to the program, So welcome back. It's good to see it. 9 00:00:27,680 --> 00:00:28,560 Speaker 2: Nice to be here, Jonathan. 10 00:00:28,720 --> 00:00:30,400 Speaker 1: Let's reach that. What do you make of the approach 11 00:00:30,400 --> 00:00:32,760 Speaker 1: from the administration to trade over the last few weeks. 12 00:00:33,120 --> 00:00:36,120 Speaker 3: Well, listen, I mean there are so many there's so 13 00:00:36,200 --> 00:00:39,200 Speaker 3: much noise, so many signals coming from the White House 14 00:00:39,240 --> 00:00:39,639 Speaker 3: right now. 15 00:00:39,680 --> 00:00:40,320 Speaker 2: I think that. 16 00:00:40,680 --> 00:00:43,519 Speaker 3: Market players are just, you know, sort of trying to 17 00:00:43,560 --> 00:00:46,400 Speaker 3: take a step back and figure out if they have 18 00:00:46,440 --> 00:00:49,040 Speaker 3: a portfolio of companies, you know, what it is that 19 00:00:49,200 --> 00:00:53,120 Speaker 3: they look like, if they're import sensitive. Obviously, there's now 20 00:00:53,520 --> 00:00:56,240 Speaker 3: a little bit more focus on what's coming out every 21 00:00:56,280 --> 00:00:58,800 Speaker 3: single day of the White House. I think the imperative 22 00:00:58,920 --> 00:01:02,680 Speaker 3: for the President and his team today as we're meeting 23 00:01:02,720 --> 00:01:05,600 Speaker 3: with Japan is to demonstrate success. I mean, this is 24 00:01:05,640 --> 00:01:10,000 Speaker 3: where I think people are looking for some amount of 25 00:01:10,080 --> 00:01:13,000 Speaker 3: clarity and that what does it mean when we're supposed 26 00:01:13,000 --> 00:01:15,720 Speaker 3: to be enduring some pain and the president's been pretty 27 00:01:15,720 --> 00:01:19,160 Speaker 3: clear said hey, we've got we're going to change sort 28 00:01:19,160 --> 00:01:20,640 Speaker 3: of the trajectory of the country. 29 00:01:20,680 --> 00:01:24,319 Speaker 2: We're going to strengthen the foundation. And if that's the case, what. 30 00:01:24,319 --> 00:01:26,480 Speaker 3: Does it really look like when he's dealing with the 31 00:01:26,600 --> 00:01:30,280 Speaker 3: counterparty and if it's Japan and I would say even India, 32 00:01:30,319 --> 00:01:34,000 Speaker 3: because India is the one that is most protectionist, that 33 00:01:34,080 --> 00:01:37,800 Speaker 3: comes to mind. If we can demonstrate there's an opening 34 00:01:37,880 --> 00:01:40,839 Speaker 3: up of that marketsa this is what it's all about. 35 00:01:41,080 --> 00:01:43,640 Speaker 3: I think that that would calm some nerves right now. 36 00:01:43,640 --> 00:01:46,040 Speaker 1: Are you convinced that is the metric for success? 37 00:01:46,560 --> 00:01:50,040 Speaker 3: Well, I think you know there is at leasta you 38 00:01:50,160 --> 00:01:52,840 Speaker 3: talked about sort of taking him literally, taking him seriously 39 00:01:53,000 --> 00:01:55,400 Speaker 3: or hinted of that what you just said. And I 40 00:01:55,480 --> 00:01:59,200 Speaker 3: look at this term of the Trump administration somewhat differently 41 00:01:59,280 --> 00:02:01,440 Speaker 3: than the way we look at the last one in 42 00:02:01,480 --> 00:02:05,320 Speaker 3: that almost he is sticking to his little word when 43 00:02:05,360 --> 00:02:07,760 Speaker 3: we're talking about tariffs and trade here. 44 00:02:07,840 --> 00:02:09,679 Speaker 2: So Jonathan, back to your question. 45 00:02:09,919 --> 00:02:13,560 Speaker 3: If he's about trade deficits, because that's been one of 46 00:02:13,560 --> 00:02:16,840 Speaker 3: the real metrics that he's put out there consistently. 47 00:02:17,440 --> 00:02:18,440 Speaker 2: That's what it's about. 48 00:02:18,480 --> 00:02:21,040 Speaker 3: So who are we going to see the Japanese buying 49 00:02:21,040 --> 00:02:22,960 Speaker 3: more of our goods? Are we going to see that 50 00:02:23,160 --> 00:02:26,720 Speaker 3: along with the opening up of their markets so that 51 00:02:26,800 --> 00:02:28,920 Speaker 3: our exports can flow into these other countries. 52 00:02:29,000 --> 00:02:32,440 Speaker 4: The President ran though, on hutting everyday goods down in prices, 53 00:02:32,480 --> 00:02:35,200 Speaker 4: things like groceries, things like gas. A recent CBS poll 54 00:02:35,280 --> 00:02:38,680 Speaker 4: says the majority of American sea tariffs adding to prices, 55 00:02:38,760 --> 00:02:42,160 Speaker 4: adding to inflation. Can they wrap this up before the midterms? 56 00:02:42,480 --> 00:02:45,079 Speaker 2: Well, this is the and then this brings up the 57 00:02:46,160 --> 00:02:46,680 Speaker 2: last point. 58 00:02:46,720 --> 00:02:49,960 Speaker 3: I think that's really important about today, and when we 59 00:02:50,000 --> 00:02:53,520 Speaker 3: look at Capitol Hill when Congress gets bad, I think 60 00:02:53,600 --> 00:02:56,920 Speaker 3: the administration and the Republicans need to act with dispatch. 61 00:02:57,720 --> 00:03:01,240 Speaker 3: It's important that the get there is some success under 62 00:03:01,280 --> 00:03:04,560 Speaker 3: the belt demonstrably, so the markets see that in terms 63 00:03:04,600 --> 00:03:07,840 Speaker 3: of dealing with countries, and I think from the Republican 64 00:03:07,960 --> 00:03:12,200 Speaker 3: standpoint in Congress, they've got to get this reconciliation bill done. 65 00:03:12,680 --> 00:03:17,080 Speaker 3: Simplicity is their friend right now. Adding additional taxes doing 66 00:03:17,120 --> 00:03:19,440 Speaker 3: those kinds of things is going to take weeks, if 67 00:03:19,480 --> 00:03:22,880 Speaker 3: not months, to bring everyone on board. And I think 68 00:03:22,960 --> 00:03:26,239 Speaker 3: if we can just extend what President Trump had said 69 00:03:26,320 --> 00:03:30,400 Speaker 3: was the greatest tax bill ever twenty seventeen, they should 70 00:03:30,480 --> 00:03:31,399 Speaker 3: just go ahead and do that. 71 00:03:31,639 --> 00:03:33,960 Speaker 4: If I had said to you, Congress right now is 72 00:03:33,960 --> 00:03:36,160 Speaker 4: debating whether or not to raise taxes on people that 73 00:03:36,200 --> 00:03:38,240 Speaker 4: make a million dollars a year. Would you think that 74 00:03:38,320 --> 00:03:39,880 Speaker 4: came from a Republican or a Democrat. 75 00:03:40,080 --> 00:03:43,240 Speaker 3: It is an extraordinary concept coming out of what I 76 00:03:43,320 --> 00:03:47,840 Speaker 3: believe is still a very pro growth party. And I think, 77 00:03:47,960 --> 00:03:50,640 Speaker 3: as I think you've been discussing this morning, the three 78 00:03:50,720 --> 00:03:54,360 Speaker 3: legs of the stool of the Trump Economic Plan. One 79 00:03:54,360 --> 00:03:57,200 Speaker 3: of them is taxes, the other deregulation. Along with the 80 00:03:57,280 --> 00:04:00,520 Speaker 3: trade agenda, all that has to come together to help 81 00:04:00,760 --> 00:04:05,800 Speaker 3: growth in this country, to see incomes rise, wages, growth, wealth, 82 00:04:06,000 --> 00:04:09,680 Speaker 3: all of it opportunity. And to sit here and say 83 00:04:09,720 --> 00:04:12,760 Speaker 3: that we are going to be increasing marginal rates on 84 00:04:12,920 --> 00:04:16,760 Speaker 3: individuals that ends up hurting small businesses. I mean, that's 85 00:04:16,800 --> 00:04:19,679 Speaker 3: the trick there. When they start talking about millionaires. Remember 86 00:04:19,720 --> 00:04:21,839 Speaker 3: we've got a lot of people in this country that 87 00:04:21,960 --> 00:04:27,800 Speaker 3: file taxes, that have subs or LPs or that are 88 00:04:27,880 --> 00:04:31,520 Speaker 3: taxed at the individual level, but actually run businesses. And 89 00:04:31,640 --> 00:04:33,320 Speaker 3: I don't think they're going to get too far with 90 00:04:33,360 --> 00:04:34,040 Speaker 3: that concept. 91 00:04:34,160 --> 00:04:36,359 Speaker 4: But what if they do. This is a pillar of 92 00:04:36,440 --> 00:04:41,200 Speaker 4: conservative orthodoxy, not to raise taxes period on anyone. What 93 00:04:41,600 --> 00:04:43,320 Speaker 4: do you make of the party in the direction of 94 00:04:43,360 --> 00:04:45,720 Speaker 4: travel if they were to go ahead with this, Well, again. 95 00:04:45,560 --> 00:04:47,240 Speaker 2: I'm not sure that they're going to go ahead with this. 96 00:04:47,400 --> 00:04:51,360 Speaker 3: So they're discussing, well, I'm not so sure how widespread 97 00:04:51,400 --> 00:04:54,240 Speaker 3: that discussion is and what kind of enthusiasm there is. 98 00:04:54,400 --> 00:04:57,760 Speaker 3: This is not a pro growth item, and I think 99 00:04:57,880 --> 00:05:00,080 Speaker 3: more of the focus is going to be on how 100 00:05:00,120 --> 00:05:03,000 Speaker 3: they come together on these pay fors because we saw 101 00:05:03,279 --> 00:05:06,320 Speaker 3: again the important data point that occurred last week was 102 00:05:06,320 --> 00:05:07,240 Speaker 3: the bond markets. 103 00:05:07,839 --> 00:05:09,800 Speaker 2: We saw the concern. 104 00:05:09,400 --> 00:05:12,920 Speaker 3: There about the fiscal health going forward, and I think 105 00:05:12,920 --> 00:05:15,320 Speaker 3: it's really important they focus on that so they can 106 00:05:15,400 --> 00:05:18,000 Speaker 3: act with dispatch and get these tax rates extended. 107 00:05:18,080 --> 00:05:20,760 Speaker 5: Heading into this year, the belief was that President Trump 108 00:05:21,000 --> 00:05:23,599 Speaker 5: was going to be a pro business president who is 109 00:05:23,640 --> 00:05:27,800 Speaker 5: going to focus on fiscal responsibility as well as celebrating 110 00:05:27,880 --> 00:05:31,760 Speaker 5: national champions. We have seen policies that have reached the 111 00:05:31,760 --> 00:05:35,200 Speaker 5: opposite consequences in markets. Do you think that this President 112 00:05:35,200 --> 00:05:36,000 Speaker 5: is still pro growth. 113 00:05:36,360 --> 00:05:37,880 Speaker 2: I do think he's a business guy. 114 00:05:37,880 --> 00:05:40,279 Speaker 3: I mean, we all know he's a real estate developer 115 00:05:40,320 --> 00:05:43,200 Speaker 3: from New York City that was very successful and had 116 00:05:43,440 --> 00:05:46,239 Speaker 3: times here where just like any in the real estate business, 117 00:05:46,279 --> 00:05:49,560 Speaker 3: they are ups and downs. But he has demonstrated the 118 00:05:49,600 --> 00:05:52,320 Speaker 3: ability in business to create wealth. 119 00:05:52,279 --> 00:05:54,440 Speaker 2: And I think he wants to do that for America. 120 00:05:54,480 --> 00:05:56,680 Speaker 3: And so yes, I think he is now what he's 121 00:05:56,720 --> 00:06:00,479 Speaker 3: going about doing in re ordering our economy and trying 122 00:06:00,520 --> 00:06:01,000 Speaker 3: to sort. 123 00:06:00,839 --> 00:06:05,240 Speaker 2: Of rebalance, if you will, the balance of trade as 124 00:06:05,320 --> 00:06:07,040 Speaker 2: well as the burden. 125 00:06:06,680 --> 00:06:10,640 Speaker 3: Sharing that occurs with US and our allies, importantly in 126 00:06:10,680 --> 00:06:13,359 Speaker 3: the financial realm as well as the defense realm. 127 00:06:13,480 --> 00:06:16,320 Speaker 5: Although you have a unique position because you wear the 128 00:06:16,360 --> 00:06:19,120 Speaker 5: hat of both being in government in a leadership position 129 00:06:19,240 --> 00:06:22,280 Speaker 5: and also talking with tons of companies while being vice 130 00:06:22,320 --> 00:06:25,680 Speaker 5: chair of molus. Do they have the confidence to invest? 131 00:06:26,040 --> 00:06:28,600 Speaker 5: Do they feel like they can be expanding right now 132 00:06:28,600 --> 00:06:32,279 Speaker 5: and have confidence and conviction that ultimately this whole mix 133 00:06:32,560 --> 00:06:33,960 Speaker 5: will benefit where they're heading? 134 00:06:34,200 --> 00:06:35,920 Speaker 3: Well, I mean I would say, first of all, we're 135 00:06:35,920 --> 00:06:40,320 Speaker 3: still America, right, I Mean, there is still this unbelievable 136 00:06:40,360 --> 00:06:42,839 Speaker 3: country that we've got with and we can go through 137 00:06:42,880 --> 00:06:46,640 Speaker 3: the various aspects of what draws capital and investors here, 138 00:06:47,040 --> 00:06:50,239 Speaker 3: rule of law, transparency, you name it, innovation, the rest. 139 00:06:50,560 --> 00:06:54,240 Speaker 3: We're still that the Trump administration understands. The President in 140 00:06:54,279 --> 00:06:57,200 Speaker 3: particular has said the biggest asset we've got is this 141 00:06:57,320 --> 00:07:00,600 Speaker 3: huge consumer market that the world now has tooled up 142 00:07:00,640 --> 00:07:03,640 Speaker 3: to take advantage of, and he's trying to use that 143 00:07:03,760 --> 00:07:09,240 Speaker 3: to go in and create a more stable trajectory longer term, 144 00:07:09,360 --> 00:07:13,000 Speaker 3: both from a fiscal and economic standpoint. So I think 145 00:07:13,120 --> 00:07:15,360 Speaker 3: listen right now, as we started, there's a lot of 146 00:07:15,400 --> 00:07:18,400 Speaker 3: signals that are creating this sort of question on the 147 00:07:18,480 --> 00:07:23,560 Speaker 3: minds of individuals, whether they are strategics, whether they are sponsors, 148 00:07:23,800 --> 00:07:28,200 Speaker 3: and how to go about in terms of conducting their business. 149 00:07:28,880 --> 00:07:31,720 Speaker 3: And that's why I say again, really really important that 150 00:07:31,800 --> 00:07:33,880 Speaker 3: we see manifestation of success. 151 00:07:34,680 --> 00:07:37,760 Speaker 2: You know, the present's really good at communicating. 152 00:07:38,200 --> 00:07:42,280 Speaker 3: I hope we can see some communication of success and 153 00:07:42,400 --> 00:07:45,280 Speaker 3: that people will begin to understand what the trade off 154 00:07:45,280 --> 00:07:45,720 Speaker 3: here is. 155 00:07:46,000 --> 00:07:49,480 Speaker 1: This is ambitious stuff. Let's finish on this. Governor. Youngki 156 00:07:49,600 --> 00:07:51,520 Speaker 1: is in your seat yesterday and we asked him this question. 157 00:07:51,520 --> 00:07:54,840 Speaker 1: I'll phrase it differently. At the moment, there are two 158 00:07:54,920 --> 00:07:58,440 Speaker 1: very left wing politicians in this country Philly stadiums. Getting 159 00:07:58,440 --> 00:08:00,400 Speaker 1: support at a time in the Democratic part is an 160 00:08:00,400 --> 00:08:03,560 Speaker 1: absolute mess in supporters rock Bottom. I get that, But 161 00:08:03,640 --> 00:08:06,800 Speaker 1: do you worry that if the president isn't successful that 162 00:08:06,880 --> 00:08:09,520 Speaker 1: a number of years time this pendulum could swing aggressively 163 00:08:09,760 --> 00:08:12,240 Speaker 1: to the left. If the right can't provide the solutions, 164 00:08:12,480 --> 00:08:14,880 Speaker 1: does this country seacunt solutions from the left? 165 00:08:15,080 --> 00:08:20,000 Speaker 2: Look, all I know is the left is so in tatters, and. 166 00:08:19,840 --> 00:08:22,840 Speaker 3: The one pillar that they've got of any kind of 167 00:08:22,920 --> 00:08:27,480 Speaker 3: unity is so extreme on the cultural side and the 168 00:08:27,640 --> 00:08:30,040 Speaker 3: design of where they see the world. There is no 169 00:08:30,160 --> 00:08:33,160 Speaker 3: way that the mass of this country, in terms of 170 00:08:33,200 --> 00:08:36,360 Speaker 3: an electorate, is going to adhere to that extreme Bernie 171 00:08:36,440 --> 00:08:40,360 Speaker 3: Sanders AOC agenda. There is just no way now not 172 00:08:40,520 --> 00:08:43,800 Speaker 3: to say that there will be unhappiness if we don't 173 00:08:43,840 --> 00:08:46,160 Speaker 3: see success again. Which is why I come back to 174 00:08:46,160 --> 00:08:48,840 Speaker 3: the point it's important that we act with that we 175 00:08:48,920 --> 00:08:53,360 Speaker 3: see some urgency and acting with dispatch in Washington. 176 00:08:52,920 --> 00:08:55,280 Speaker 1: Because you understand the risk here to bring up the 177 00:08:55,280 --> 00:08:59,000 Speaker 1: em example that you swing between Bolsonnaro and Lula. Bolscenaro 178 00:08:59,120 --> 00:09:02,280 Speaker 1: and Lula start to resemble what we see in Latin America. Repeatedly, 179 00:09:02,400 --> 00:09:03,440 Speaker 1: we are America. 180 00:09:03,600 --> 00:09:04,520 Speaker 2: We are America. 181 00:09:04,600 --> 00:09:09,760 Speaker 3: We are not Brazil, right, so we have a long 182 00:09:09,840 --> 00:09:17,760 Speaker 3: tradition of continued institutional guardrails, protections. We have the deepest, 183 00:09:18,000 --> 00:09:22,200 Speaker 3: broadest capital markets there are. I still believe that we 184 00:09:22,360 --> 00:09:25,400 Speaker 3: can get through this. Again, as you said, this is 185 00:09:25,440 --> 00:09:29,040 Speaker 3: a very ambitious goal that the president has set out 186 00:09:29,080 --> 00:09:32,720 Speaker 3: to sort of rebalance. It is where we can head. 187 00:09:33,080 --> 00:09:35,720 Speaker 3: And the fact that there have been some people left out, 188 00:09:36,080 --> 00:09:38,280 Speaker 3: and when you talk about these stadiums that are filled 189 00:09:38,280 --> 00:09:42,319 Speaker 3: by Bernie Sanders and aoc accolytes, it is those people 190 00:09:42,360 --> 00:09:44,680 Speaker 3: that are looking for the answers and frankly a lot 191 00:09:44,679 --> 00:09:47,120 Speaker 3: of sort of people who feel left out if there 192 00:09:47,160 --> 00:09:50,000 Speaker 3: are those stadiums. They are looking to the president to 193 00:09:50,080 --> 00:09:51,839 Speaker 3: deliver on the promises. 194 00:09:51,320 --> 00:09:52,000 Speaker 2: That he's made. 195 00:09:52,120 --> 00:09:54,840 Speaker 1: It's an ambitious agenda. We've said it repeatedly on this program. 196 00:09:54,880 --> 00:09:56,920 Speaker 1: For the good of the country. We hope he's successful. 197 00:09:57,160 --> 00:09:58,679 Speaker 1: Eric is good to see it. Thanks for droving night 198 00:09:58,880 --> 00:10:01,200 Speaker 1: the former House majority to their Eric cancer