1 00:00:02,520 --> 00:00:10,119 Speaker 1: Bloomberg Audio Studios, Podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,440 Speaker 1: noon and five pm Eastern on Applecarckley and Android Auto 4 00:00:17,520 --> 00:00:20,680 Speaker 1: with the Bloomberg Business App. Listen on demand wherever you 5 00:00:20,720 --> 00:00:23,760 Speaker 1: get your podcasts, or watch us live on YouTube. 6 00:00:25,160 --> 00:00:26,560 Speaker 2: It is the day after the meeting. 7 00:00:27,760 --> 00:00:29,440 Speaker 3: President Trump is in the air and he's on his 8 00:00:29,480 --> 00:00:31,160 Speaker 3: way back to Washington. He should be on the ground 9 00:00:31,200 --> 00:00:34,159 Speaker 3: about two hours from now on this Thursday. It is 10 00:00:34,200 --> 00:00:36,880 Speaker 3: the thirtieth of October. If you can imagine that, a 11 00:00:37,000 --> 00:00:40,120 Speaker 3: rainy day here in the nation's capital as the President 12 00:00:40,159 --> 00:00:42,880 Speaker 3: comes back home from South Korea and the Senate heads 13 00:00:42,880 --> 00:00:45,600 Speaker 3: for the hills. After another less than fruitful week in 14 00:00:45,720 --> 00:00:48,680 Speaker 3: keeping the government open, we are now closed for thirty 15 00:00:48,960 --> 00:00:52,760 Speaker 3: days with again no signs of this ending. So thanks 16 00:00:52,760 --> 00:00:55,040 Speaker 3: for joining us here on the Thursday edition of Balance 17 00:00:55,040 --> 00:00:58,760 Speaker 3: of Power here on Bloomberg TV and Radio. The meeting 18 00:00:58,840 --> 00:01:02,560 Speaker 3: lasted an hour and forty minutes roughly between President Trump 19 00:01:02,600 --> 00:01:10,200 Speaker 3: and President she All of the President's lieutenants were there, Lutnik, Bessant, Rubio, Greer, Wiles, 20 00:01:10,319 --> 00:01:14,760 Speaker 3: even Purdue, Yes, the ambassador to China, David Perdue was 21 00:01:14,800 --> 00:01:17,360 Speaker 3: there and within an hour of that meeting ending, the 22 00:01:17,440 --> 00:01:20,520 Speaker 3: President was on Air Force one talking with reporters. This 23 00:01:20,680 --> 00:01:23,040 Speaker 3: was the first readout that we got on what happened. 24 00:01:23,040 --> 00:01:24,039 Speaker 3: Listen to Donald Trump. 25 00:01:25,360 --> 00:01:27,760 Speaker 2: I thought it was an amazing meeting. 26 00:01:29,120 --> 00:01:32,160 Speaker 4: He's a great leader, great leader of a very powerful, 27 00:01:32,319 --> 00:01:36,920 Speaker 4: very strong country, China, and we. 28 00:01:38,240 --> 00:01:38,960 Speaker 5: What can I say? 29 00:01:39,080 --> 00:01:39,399 Speaker 6: We have. 30 00:01:41,040 --> 00:01:45,360 Speaker 2: Who was an outstanding group of decisions? 31 00:01:45,400 --> 00:01:48,040 Speaker 4: I think that was made at We've come to conclusion 32 00:01:48,120 --> 00:01:49,880 Speaker 4: on many very important. 33 00:01:49,480 --> 00:01:55,160 Speaker 3: Points, many important points. He called the meeting at twelve 34 00:01:55,160 --> 00:01:57,160 Speaker 3: out of ten. But we're still trying to figure out 35 00:01:57,200 --> 00:02:00,280 Speaker 3: exactly what was accomplished beyond the one year true goose. 36 00:02:00,680 --> 00:02:04,600 Speaker 3: The President is cutting tariffs on China by ten percent immediately, 37 00:02:04,680 --> 00:02:07,480 Speaker 3: fifty seven to forty seven percent, with a nod to 38 00:02:07,560 --> 00:02:11,680 Speaker 3: China's attempt to apparently interfere with the fentanyl trade, though 39 00:02:11,680 --> 00:02:15,200 Speaker 3: we haven't seen details on that. The new threat of 40 00:02:15,200 --> 00:02:18,160 Speaker 3: an additional one hundred percent tariff is now off the table. 41 00:02:18,200 --> 00:02:22,239 Speaker 3: In exchange for access to rare earth minerals, soybeans will 42 00:02:22,280 --> 00:02:24,720 Speaker 3: be sold. This might be the most specific takeaway that 43 00:02:24,800 --> 00:02:27,359 Speaker 3: we have twelve million tons of soy for this year 44 00:02:27,400 --> 00:02:30,240 Speaker 3: twenty five million a year going through twenty twenty eight. 45 00:02:30,280 --> 00:02:32,800 Speaker 3: According to Brook Rollins, the ag Secretary and the President 46 00:02:32,880 --> 00:02:35,520 Speaker 3: is going to go to China in April, is at 47 00:02:35,600 --> 00:02:38,320 Speaker 3: least the plan for now. That remains a long way off, 48 00:02:38,360 --> 00:02:41,440 Speaker 3: but we have huge questions about so many things from Nvidia. 49 00:02:41,480 --> 00:02:44,000 Speaker 3: I remember yesterday we were talking about selling black wells 50 00:02:44,000 --> 00:02:44,560 Speaker 3: in Beijing. 51 00:02:45,400 --> 00:02:46,400 Speaker 2: No agreement there. 52 00:02:46,919 --> 00:02:50,240 Speaker 3: President says, Taiwan did not come up and nothing was 53 00:02:50,240 --> 00:02:53,280 Speaker 3: hammered out on TikTok, generating the headline on the terminal 54 00:02:53,639 --> 00:02:57,320 Speaker 3: Trump she truce buys time as both seek leverage in 55 00:02:57,400 --> 00:03:00,839 Speaker 3: broader fight, or as Terry Haynes at Panji Policy put 56 00:03:00,840 --> 00:03:03,640 Speaker 3: it in his note to clients, you'll get a truce 57 00:03:03,760 --> 00:03:04,520 Speaker 3: and you'll like it. 58 00:03:06,080 --> 00:03:07,360 Speaker 2: Let's go to South Korea for more. 59 00:03:07,400 --> 00:03:10,559 Speaker 3: Bloomberg's Tyler Kendall's been there all week for the negotiations 60 00:03:10,639 --> 00:03:13,800 Speaker 3: with Soul and now Beijing and joins US with a 61 00:03:13,800 --> 00:03:14,560 Speaker 3: live update. 62 00:03:14,760 --> 00:03:15,800 Speaker 2: Tyler, what else do we know? 63 00:03:18,360 --> 00:03:20,880 Speaker 6: Hey, Joe, Well, you really set this up perfectly. We 64 00:03:20,919 --> 00:03:23,400 Speaker 6: are seeing this easing intentions. But at the end of 65 00:03:23,440 --> 00:03:26,240 Speaker 6: the day, the root causes that led to this standoff 66 00:03:26,240 --> 00:03:29,760 Speaker 6: between the US and China really haven't been resolved. Particularly 67 00:03:29,840 --> 00:03:33,360 Speaker 6: around national security, the greater issue of unbalanced trade, and 68 00:03:33,400 --> 00:03:36,480 Speaker 6: of course as both countries are jockeying for dominance when 69 00:03:36,520 --> 00:03:39,000 Speaker 6: it comes to the tech sector. Now you laid out 70 00:03:39,040 --> 00:03:41,000 Speaker 6: some of the deliverables that we did get this meeting, 71 00:03:41,000 --> 00:03:42,920 Speaker 6: we should keep in mind that there's actually a broad 72 00:03:42,920 --> 00:03:46,800 Speaker 6: away array of tariffs on a China imposed by the US. 73 00:03:46,800 --> 00:03:49,440 Speaker 6: Some are from a Section three to one investigation into unfair 74 00:03:49,480 --> 00:03:53,320 Speaker 6: trade practices. Others are Section two thirty two tariffs enacted 75 00:03:53,440 --> 00:03:57,560 Speaker 6: on sector in specific. But then some are related to 76 00:03:57,600 --> 00:04:00,720 Speaker 6: fetanel that twenty percent tariff related to now now being 77 00:04:00,760 --> 00:04:02,720 Speaker 6: cut in half. But as you mentioned, we are going 78 00:04:02,720 --> 00:04:05,320 Speaker 6: off of a pledge President Trump said that he got 79 00:04:05,360 --> 00:04:08,480 Speaker 6: from Chinese President Jijingping to curb what's known as those 80 00:04:08,560 --> 00:04:12,960 Speaker 6: precursor chemicals that go into the drug And then lastly, 81 00:04:13,000 --> 00:04:15,880 Speaker 6: there's that so called reciprocal tariff frate that's been on China. 82 00:04:15,920 --> 00:04:18,240 Speaker 6: It had the threat to be ratcheted up. Now it 83 00:04:18,360 --> 00:04:21,360 Speaker 6: is going to be extended at ten percent for at 84 00:04:21,440 --> 00:04:23,600 Speaker 6: least a year. So that's how we get that aggregate 85 00:04:23,640 --> 00:04:27,560 Speaker 6: forty seven percent effective US terifrate currently in place. But 86 00:04:27,640 --> 00:04:30,039 Speaker 6: then some of those other deliverables that we got. Really 87 00:04:30,120 --> 00:04:33,200 Speaker 6: just feel like we are getting a pullback in recent 88 00:04:33,320 --> 00:04:36,280 Speaker 6: escalation from just the past few weeks. Right, China now 89 00:04:36,320 --> 00:04:40,280 Speaker 6: committing to soybeans purchasing twelve million tons through the end 90 00:04:40,320 --> 00:04:42,640 Speaker 6: of this year twenty five million tons for the next 91 00:04:42,680 --> 00:04:45,760 Speaker 6: three years worth mentioning that twenty five million ton number 92 00:04:45,960 --> 00:04:49,400 Speaker 6: is in line with what US farmers would be expecting 93 00:04:49,480 --> 00:04:53,440 Speaker 6: to export during that time. So that is welcome news, 94 00:04:53,480 --> 00:04:57,080 Speaker 6: of course for American farmers. But those other provisions, threats 95 00:04:57,080 --> 00:04:59,760 Speaker 6: from the US to impose fees on Chinese ships docked 96 00:04:59,800 --> 00:05:02,560 Speaker 6: on at American ports, for example, that has also come 97 00:05:02,600 --> 00:05:04,520 Speaker 6: off the table. So, Joe, I think that you framed 98 00:05:04,520 --> 00:05:06,960 Speaker 6: it really well. This is an easing of tensions. It 99 00:05:07,040 --> 00:05:08,800 Speaker 6: is welcome, But at the end of the day, it 100 00:05:08,800 --> 00:05:12,360 Speaker 6: feels like we are mainly pulling back on the escalation 101 00:05:12,480 --> 00:05:14,440 Speaker 6: from really just the past few weeks alone. 102 00:05:15,520 --> 00:05:19,960 Speaker 3: Fascinating Tyler, there was talk of a energy deal in Alaska, 103 00:05:20,000 --> 00:05:23,040 Speaker 3: that China would be buying oil and gas. The President 104 00:05:23,120 --> 00:05:26,000 Speaker 3: says Chris Wright, Doug Bergham, and our respective energy teams, 105 00:05:26,040 --> 00:05:28,599 Speaker 3: according to his true Social post, will be meeting to 106 00:05:28,640 --> 00:05:30,880 Speaker 3: see if such an energy deal can be worked out. 107 00:05:30,920 --> 00:05:32,640 Speaker 3: So nothing is on paper yet right. 108 00:05:34,920 --> 00:05:37,520 Speaker 6: No, not yet, And the Energy Secretary, Chris Wright, was 109 00:05:37,560 --> 00:05:40,120 Speaker 6: on Bloomberg Television this morning did confirm that he has 110 00:05:40,160 --> 00:05:42,360 Speaker 6: a trip coming up. He said it actually might happen 111 00:05:42,520 --> 00:05:46,120 Speaker 6: sooner than previously expected, but we did not get any 112 00:05:46,160 --> 00:05:48,520 Speaker 6: more details here. Of course, as you well know, the 113 00:05:48,520 --> 00:05:51,960 Speaker 6: administration has been pushing to streamline and deregulate when it 114 00:05:51,960 --> 00:05:54,800 Speaker 6: comes to permitting and drilling in Alaska to get more 115 00:05:54,839 --> 00:05:58,039 Speaker 6: American barrels overseas. So it's something we're going to be 116 00:05:58,080 --> 00:06:01,960 Speaker 6: watching closely because President Trump to this point hasn't taken 117 00:06:02,120 --> 00:06:04,719 Speaker 6: punitive action against China when it comes to their imports 118 00:06:04,720 --> 00:06:07,800 Speaker 6: of Russian energy supplies, with say a so called secondary 119 00:06:07,839 --> 00:06:11,520 Speaker 6: tariff like we've seen implemented against India, and China is 120 00:06:11,560 --> 00:06:15,000 Speaker 6: the top importer of Russian energy crued. In fact, Russian 121 00:06:15,000 --> 00:06:18,200 Speaker 6: barrels make up about twenty percent of China's import of 122 00:06:19,120 --> 00:06:23,719 Speaker 6: crude in general, so a huge market for them as 123 00:06:24,360 --> 00:06:27,400 Speaker 6: this really has been a central component to helping the 124 00:06:27,440 --> 00:06:29,640 Speaker 6: Kremlin fund the war in Ukraine. 125 00:06:30,600 --> 00:06:32,880 Speaker 3: Yeah, great stuff, Tyler, We're so lucky to have you there. 126 00:06:32,920 --> 00:06:36,240 Speaker 3: Tyler Kendall still in South Korea for the aftermath of 127 00:06:36,279 --> 00:06:39,520 Speaker 3: the APEX Summit and President Trump's meeting with President she 128 00:06:39,839 --> 00:06:41,719 Speaker 3: We'll have more from Tyler as we make our way 129 00:06:41,720 --> 00:06:44,240 Speaker 3: through the day here and the president makes his return 130 00:06:44,279 --> 00:06:47,880 Speaker 3: to the US clutch. Analysis from the former US Treasury 131 00:06:47,960 --> 00:06:51,200 Speaker 3: Secretary Larry Summers. He talked to David Weston just a 132 00:06:51,240 --> 00:06:52,760 Speaker 3: short time ago following the meeting. 133 00:06:52,760 --> 00:06:53,800 Speaker 2: Here's what he said. 134 00:06:54,279 --> 00:06:57,560 Speaker 4: I think the most important thing is what didn't happen 135 00:06:58,200 --> 00:07:02,680 Speaker 4: this situation. Didn't spy were all out of control into 136 00:07:03,279 --> 00:07:08,080 Speaker 4: massive confrontation and economic conflict, and it was managed in 137 00:07:08,120 --> 00:07:14,000 Speaker 4: a way that avoided what potentially could have been very 138 00:07:14,120 --> 00:07:18,880 Speaker 4: unfortunate and destabilizing outcomes. And that's the good news. And 139 00:07:18,960 --> 00:07:25,000 Speaker 4: I think it genuinely is good news. Glass half full. 140 00:07:25,160 --> 00:07:27,880 Speaker 3: Let's see what Mary Lovely is pouring, Senior fellow at 141 00:07:27,880 --> 00:07:32,160 Speaker 3: the Peterson Institute for International Economics. We had to talk 142 00:07:32,200 --> 00:07:34,760 Speaker 3: to Mary knowing the importance of this meeting, and it's 143 00:07:34,800 --> 00:07:37,040 Speaker 3: great to have you back with us. Mary on Bloomberg 144 00:07:37,720 --> 00:07:41,320 Speaker 3: TV and radio. We can say a lot about what 145 00:07:41,560 --> 00:07:44,760 Speaker 3: was not accomplished or what didn't happen. Yes, we don't 146 00:07:44,800 --> 00:07:47,600 Speaker 3: have an international crisis this morning, but we don't have 147 00:07:47,640 --> 00:07:48,680 Speaker 3: a lot of details either. 148 00:07:48,760 --> 00:07:52,679 Speaker 2: How are you reading this meeting, Well, it's. 149 00:07:52,600 --> 00:07:54,920 Speaker 7: A little bit sense of back to the future. 150 00:07:55,000 --> 00:07:57,600 Speaker 8: We you know, a lot of this conflict was stirred 151 00:07:57,680 --> 00:08:00,960 Speaker 8: up by President Trump in attempts to get some leverage. 152 00:08:01,640 --> 00:08:07,120 Speaker 8: China showed a very strong weapon in its rare earth exports, 153 00:08:07,240 --> 00:08:10,480 Speaker 8: and I think the US blinked. So I think that, 154 00:08:11,760 --> 00:08:16,760 Speaker 8: you know, the former Treasury Secretary Larry Summers is right, 155 00:08:17,320 --> 00:08:19,960 Speaker 8: we don't have an escalation. But I think the reason 156 00:08:20,000 --> 00:08:23,600 Speaker 8: that we don't have an escalation is because that the 157 00:08:23,720 --> 00:08:25,840 Speaker 8: US realized that it was not in a good position. 158 00:08:26,880 --> 00:08:30,440 Speaker 8: I think we're seeing an asymmetric, you know, response to this, 159 00:08:30,520 --> 00:08:32,680 Speaker 8: which is that China is doing everything it can to 160 00:08:32,720 --> 00:08:35,760 Speaker 8: reduce its dependence on the United States. It has been 161 00:08:35,840 --> 00:08:38,640 Speaker 8: for some time, and the US is focused on short 162 00:08:38,720 --> 00:08:43,000 Speaker 8: term deals, and I think that that asymmetry is not 163 00:08:43,080 --> 00:08:44,800 Speaker 8: going to service well moving forward. 164 00:08:46,000 --> 00:08:48,880 Speaker 3: Wow, all right, well there's your headline for Mary Lovely. 165 00:08:48,960 --> 00:08:51,439 Speaker 3: The US blinked. You said a couple of things there 166 00:08:51,480 --> 00:08:53,200 Speaker 3: as well. Back to the future is not the first 167 00:08:53,240 --> 00:08:55,560 Speaker 3: time I've heard that line, and I was trying went 168 00:08:55,600 --> 00:08:59,560 Speaker 3: out earlier. Mary, Is this not the proverbial putting on 169 00:08:59,640 --> 00:09:02,840 Speaker 3: a real tight pair of shoes and celebrating how good 170 00:09:02,840 --> 00:09:03,960 Speaker 3: it feels to take them off. 171 00:09:05,679 --> 00:09:10,079 Speaker 8: I think that is apt. I think that we are 172 00:09:10,120 --> 00:09:12,400 Speaker 8: happy that the shoes are off. There is no doubt 173 00:09:12,400 --> 00:09:16,080 Speaker 8: about that. And you know, one hundred percent tariffs on 174 00:09:16,160 --> 00:09:19,880 Speaker 8: China simply would do nothing good, only bad things for 175 00:09:19,920 --> 00:09:20,840 Speaker 8: the US economy. 176 00:09:20,960 --> 00:09:23,520 Speaker 7: That doesn't mean that China would be spared either. They 177 00:09:23,559 --> 00:09:23,880 Speaker 7: would be. 178 00:09:24,000 --> 00:09:26,480 Speaker 8: They are being hurt by this, but they're in a 179 00:09:26,559 --> 00:09:30,600 Speaker 8: very different situation, different political system. I think the Chinese 180 00:09:30,640 --> 00:09:33,400 Speaker 8: feel very good about where they are about the use 181 00:09:33,440 --> 00:09:35,920 Speaker 8: of the rare earth. I think right now we've sort 182 00:09:35,920 --> 00:09:38,359 Speaker 8: of seen the big weapons put back in the holsters. 183 00:09:38,400 --> 00:09:42,120 Speaker 8: But as as your correspondent has noted and others have noted, 184 00:09:42,440 --> 00:09:45,240 Speaker 8: this is you know, really by no means the settling 185 00:09:45,360 --> 00:09:48,200 Speaker 8: of the really big issues that are out there, and 186 00:09:48,240 --> 00:09:51,400 Speaker 8: those issues, I might add, have really changed since Trump won, 187 00:09:52,360 --> 00:09:54,760 Speaker 8: since the issues that were dealt with in the original 188 00:09:54,880 --> 00:09:58,440 Speaker 8: section three on one report that was the basis for 189 00:09:58,679 --> 00:10:03,520 Speaker 8: the trade war that started back in twenty seventeen. Today 190 00:10:03,559 --> 00:10:08,400 Speaker 8: we're looking at very very difficult issues on really decoupling 191 00:10:09,320 --> 00:10:13,160 Speaker 8: for national security purposes and doing that in a way 192 00:10:13,280 --> 00:10:17,479 Speaker 8: that really minimizes the negative effect on the US economy 193 00:10:17,520 --> 00:10:19,120 Speaker 8: and on the economy. 194 00:10:18,559 --> 00:10:21,120 Speaker 7: Of our alliances. 195 00:10:21,200 --> 00:10:26,000 Speaker 8: So there are some really serious difficult issues ahead. I 196 00:10:26,040 --> 00:10:30,320 Speaker 8: think soybeans are important to farmers, but you know, for China, 197 00:10:30,400 --> 00:10:32,240 Speaker 8: this is just another chit that it can turn on 198 00:10:32,320 --> 00:10:33,080 Speaker 8: and turn off. 199 00:10:34,080 --> 00:10:35,560 Speaker 2: Okay, well, so that's my question. 200 00:10:35,600 --> 00:10:37,920 Speaker 3: You mentioned twenty seventeen, we've got a deal here to 201 00:10:37,920 --> 00:10:40,360 Speaker 3: buy at least twelve million tons of soybeans rest of 202 00:10:40,400 --> 00:10:43,000 Speaker 3: the year than twenty five million a year through twenty 203 00:10:43,040 --> 00:10:43,600 Speaker 3: twenty eight. 204 00:10:44,000 --> 00:10:46,320 Speaker 2: Does history show us that China will actually do this? 205 00:10:47,840 --> 00:10:49,679 Speaker 7: I think it depends on us activity. 206 00:10:50,040 --> 00:10:55,120 Speaker 8: You know, President Trump has shown a penchant for you know, 207 00:10:55,240 --> 00:10:58,000 Speaker 8: suddenly one day something upsets him and he's got one percent, 208 00:10:58,080 --> 00:11:00,000 Speaker 8: one hundred and forty percent tariff on China. 209 00:11:01,040 --> 00:11:03,280 Speaker 7: If he does so, he knows that twenty five. 210 00:11:03,120 --> 00:11:08,240 Speaker 8: Million fuscials of zoybeans are at play, so in his sense, 211 00:11:08,320 --> 00:11:11,280 Speaker 8: that gives another another another tool to China. 212 00:11:14,280 --> 00:11:18,160 Speaker 3: Do we believe that Taiwan quote never came up unquote 213 00:11:18,400 --> 00:11:19,840 Speaker 3: as President Trump said. 214 00:11:21,240 --> 00:11:22,679 Speaker 7: It's highly possible. 215 00:11:22,880 --> 00:11:25,959 Speaker 8: I think right now we all benefit from as little 216 00:11:25,960 --> 00:11:31,880 Speaker 8: attention to Taiwan as as possible. You know, a continuation 217 00:11:31,960 --> 00:11:33,839 Speaker 8: of the status quo I think is in the long 218 00:11:33,920 --> 00:11:37,119 Speaker 8: term interests of you know, global economic stability. 219 00:11:37,480 --> 00:11:39,480 Speaker 7: So if it didn't come up, I think that's probably good. 220 00:11:39,840 --> 00:11:41,319 Speaker 7: We are focused on very short. 221 00:11:41,200 --> 00:11:44,840 Speaker 8: Term issues here, and again it's important that this was 222 00:11:44,920 --> 00:11:49,200 Speaker 8: resolved and resolved quickly, but that doesn't mean that in 223 00:11:49,240 --> 00:11:52,400 Speaker 8: any sense we're not We're not looking at a rocky 224 00:11:52,480 --> 00:11:55,520 Speaker 8: road ahead. Now that road doesn't have to be rocky, 225 00:11:56,120 --> 00:11:58,440 Speaker 8: but it has to be serious and it has to 226 00:11:58,480 --> 00:12:01,640 Speaker 8: be deep in thinking about, you know, the cost benefit 227 00:12:01,960 --> 00:12:04,720 Speaker 8: on where we really need to decouple in some sense 228 00:12:04,760 --> 00:12:05,360 Speaker 8: from China. 229 00:12:05,720 --> 00:12:08,920 Speaker 7: What are the parameters for tech integration? 230 00:12:09,360 --> 00:12:11,800 Speaker 8: You know, Joe, you mentioned that we hadn't heard anything 231 00:12:11,800 --> 00:12:15,920 Speaker 8: about the TikTok deal. The Chinese media and scholars were 232 00:12:15,920 --> 00:12:18,120 Speaker 8: looking to see what the parameters there were that were 233 00:12:18,120 --> 00:12:19,920 Speaker 8: going to be acceptable to both sides. 234 00:12:20,720 --> 00:12:23,800 Speaker 7: We had a teaser on Blackwell chips. You know, what 235 00:12:23,960 --> 00:12:25,720 Speaker 7: is the acceptable level of integration? 236 00:12:26,160 --> 00:12:29,280 Speaker 8: This is important because we're moving very very quickly into 237 00:12:29,280 --> 00:12:32,440 Speaker 8: the AI era where China is going to be very 238 00:12:32,480 --> 00:12:37,000 Speaker 8: competitive in embodied intelligence, the things that use AI to 239 00:12:37,080 --> 00:12:41,240 Speaker 8: bring those productivity improvements to fruition. Where are we with 240 00:12:42,240 --> 00:12:45,760 Speaker 8: being able to purchase those and allow our allies to 241 00:12:45,800 --> 00:12:46,760 Speaker 8: purchase those. 242 00:12:47,720 --> 00:12:50,800 Speaker 3: Yeah, I'm glad you mentioned in video because the market 243 00:12:50,840 --> 00:12:55,080 Speaker 3: was breathless about Blackwells yesterday at Sendinvidio stock to a 244 00:12:55,120 --> 00:12:57,360 Speaker 3: new high. People couldn't believe it. How could this suddenly 245 00:12:57,400 --> 00:13:00,520 Speaker 3: be on the table? What's going to happen is potentially 246 00:13:00,559 --> 00:13:03,960 Speaker 3: so irresponsible. We had Republicans and Democrats from the Senate 247 00:13:04,200 --> 00:13:07,160 Speaker 3: saying so on the program last evening, and then nothing 248 00:13:07,679 --> 00:13:11,240 Speaker 3: China will talk to in Nvidia and others. The President 249 00:13:11,320 --> 00:13:14,240 Speaker 3: said about buying more high tech computer chips, and that's 250 00:13:14,280 --> 00:13:14,880 Speaker 3: a good thing. 251 00:13:15,280 --> 00:13:16,679 Speaker 2: Where are we going with Nvidia? 252 00:13:18,400 --> 00:13:21,839 Speaker 8: I think we're seeing tensions within the administration on how 253 00:13:21,880 --> 00:13:25,280 Speaker 8: we are going to approach these the national security concerns, 254 00:13:25,440 --> 00:13:30,240 Speaker 8: particularly around advanced chips, something that we thought we were 255 00:13:31,160 --> 00:13:34,000 Speaker 8: controlling to the best of our ability, and it was always, 256 00:13:34,000 --> 00:13:36,800 Speaker 8: as you know, Joe, very imperfect. China was still getting 257 00:13:36,840 --> 00:13:39,840 Speaker 8: access to a lot of the most advanced chips. But 258 00:13:39,960 --> 00:13:43,440 Speaker 8: we saw a big escalation a few weeks ago when 259 00:13:43,440 --> 00:13:47,920 Speaker 8: the Trump administration moved to put the foreign affiliates of 260 00:13:48,240 --> 00:13:52,880 Speaker 8: Chinese companies on the Entity List on the Entity list themselves, 261 00:13:53,280 --> 00:13:57,960 Speaker 8: something that expanded those lists by close to twenty thousand firms. 262 00:13:58,200 --> 00:14:04,000 Speaker 8: The Chinese obviously reacted very negatively and came out with 263 00:14:04,160 --> 00:14:07,680 Speaker 8: the series of export controls of their own, which would 264 00:14:07,720 --> 00:14:09,920 Speaker 8: have been deep Billy destabilizing. 265 00:14:09,960 --> 00:14:11,640 Speaker 7: We saw a little bit of rollback of those. 266 00:14:12,760 --> 00:14:14,840 Speaker 8: President she has said that he's not going to put 267 00:14:14,880 --> 00:14:19,400 Speaker 8: really whatich our controls on third party sales of goods 268 00:14:19,400 --> 00:14:23,880 Speaker 8: that contain rarers, but they maintain their licensing system. 269 00:14:24,240 --> 00:14:26,040 Speaker 7: So what was that about? 270 00:14:26,160 --> 00:14:29,880 Speaker 8: What was this escalation in the middle of negotiations by 271 00:14:29,920 --> 00:14:33,440 Speaker 8: Secretary Besson and his team with the Chinese and then 272 00:14:33,440 --> 00:14:37,040 Speaker 8: the president teasing on the Blackwell chips. So again, I 273 00:14:37,080 --> 00:14:39,560 Speaker 8: don't think we have much clarity on where these lines 274 00:14:39,560 --> 00:14:40,360 Speaker 8: are going to be drawn. 275 00:14:41,560 --> 00:14:43,920 Speaker 2: We've got about a minute left here. Mary. 276 00:14:43,960 --> 00:14:47,360 Speaker 3: The President will travel to China in April, he says, 277 00:14:47,400 --> 00:14:52,600 Speaker 3: with further talks in store with President She apparently she 278 00:14:52,680 --> 00:14:55,360 Speaker 3: has agreed to a return trip further down the line. 279 00:14:55,400 --> 00:14:56,480 Speaker 2: These are months away. 280 00:14:56,560 --> 00:14:59,320 Speaker 3: What will need to happen for Donald Trump to go 281 00:14:59,480 --> 00:15:02,520 Speaker 3: back to and could that generate an actual deal? 282 00:15:04,160 --> 00:15:05,840 Speaker 7: I could they have to? 283 00:15:06,120 --> 00:15:08,400 Speaker 8: I think the American team has to decide where they're 284 00:15:08,400 --> 00:15:12,360 Speaker 8: going to make these compromises and not provide any more 285 00:15:12,400 --> 00:15:14,080 Speaker 8: easy wins to the Chinese. 286 00:15:14,520 --> 00:15:17,720 Speaker 7: The Chinese have always had a. 287 00:15:17,520 --> 00:15:22,800 Speaker 8: Short term escalation dominance, as Adam Posen has written, and 288 00:15:23,240 --> 00:15:26,240 Speaker 8: here we need to really be careful not to give 289 00:15:26,280 --> 00:15:28,960 Speaker 8: them any more tools. And that means that the US 290 00:15:29,080 --> 00:15:31,920 Speaker 8: needs to continue to do the hard work of raising 291 00:15:31,960 --> 00:15:35,440 Speaker 8: its own economic resilience, and we're starting to do that 292 00:15:35,520 --> 00:15:38,320 Speaker 8: looking for alternative deals on critical minerals, but we know 293 00:15:38,440 --> 00:15:41,640 Speaker 8: those are something that can't be just snapped into place. 294 00:15:42,440 --> 00:15:44,480 Speaker 2: Yeah, woy, We've got a lot to figure out still, 295 00:15:44,520 --> 00:15:46,320 Speaker 2: I think. And it's great to have you back. 296 00:15:46,360 --> 00:15:46,600 Speaker 5: Mary. 297 00:15:46,640 --> 00:15:50,640 Speaker 3: Let's keep this conversation rolling certainly until next April. Mary 298 00:15:50,680 --> 00:15:55,520 Speaker 3: Lovely Peterson Institute for International Economics. A fascinating conversation, and 299 00:15:55,520 --> 00:15:57,640 Speaker 3: we thank you for joining us. That'll be on the podcast. 300 00:15:57,680 --> 00:16:00,520 Speaker 3: I'm Joe Matthew. This is Bloomberg with us. 301 00:16:00,360 --> 00:16:02,600 Speaker 2: On Balance of Power. We'll have much more coming up 302 00:16:02,640 --> 00:16:03,080 Speaker 2: after this. 303 00:16:07,320 --> 00:16:10,800 Speaker 1: You're listening to the Bloomberg Balance of Power Podcast. Catch 304 00:16:10,880 --> 00:16:14,320 Speaker 1: us live weekdays at noon and five pm Eastern on Apple, 305 00:16:14,360 --> 00:16:17,400 Speaker 1: Cockway and Android Auto with the Bloomberg Business App. You 306 00:16:17,440 --> 00:16:20,920 Speaker 1: can also listen live on Amazon Alexa from our flagship 307 00:16:20,960 --> 00:16:24,880 Speaker 1: New York station, Just say Alexa play Bloomberg eleven thirty. 308 00:16:26,160 --> 00:16:28,400 Speaker 3: We're looking at you from Washington with our eyes on 309 00:16:28,480 --> 00:16:30,160 Speaker 3: New York, and we're going to be up there next week. 310 00:16:30,200 --> 00:16:32,320 Speaker 3: I hope you'll join us with special coverage on election 311 00:16:32,440 --> 00:16:36,640 Speaker 3: day as we balance races in New York, New Jersey, Virginia. 312 00:16:36,720 --> 00:16:39,160 Speaker 3: We've been talking about them as they, according to some 313 00:16:39,240 --> 00:16:41,480 Speaker 3: at least play into this government shutdown, or maybe. 314 00:16:41,320 --> 00:16:42,160 Speaker 2: It's the other way around. 315 00:16:42,200 --> 00:16:47,400 Speaker 3: We'll find out together next week whether the elections themselves 316 00:16:47,600 --> 00:16:50,520 Speaker 3: bring any off ramps. But the polling is what has 317 00:16:50,600 --> 00:16:52,480 Speaker 3: us compelled today because we've been getting a lot of 318 00:16:52,560 --> 00:16:56,560 Speaker 3: numbers recently on the New York mayoral race and they 319 00:16:56,760 --> 00:17:00,120 Speaker 3: just don't agree, which is making us wonder where this 320 00:17:00,200 --> 00:17:03,440 Speaker 3: race actually is. If you ask the good people at 321 00:17:03,480 --> 00:17:07,240 Speaker 3: Emerson College, they're polling institute, they'd tell you there's a 322 00:17:07,400 --> 00:17:11,560 Speaker 3: twenty five point lead for zoron Mam Donnie. And that's 323 00:17:11,680 --> 00:17:14,560 Speaker 3: the type of number we've been hearing, right, twenty thirty percent. 324 00:17:14,760 --> 00:17:17,920 Speaker 3: It's going to be a blowout, they say, get ready 325 00:17:17,920 --> 00:17:18,680 Speaker 3: for an early night. 326 00:17:20,240 --> 00:17:20,440 Speaker 8: Man. 327 00:17:20,440 --> 00:17:23,280 Speaker 3: You ask Marist College, well, they've got a sixteen point 328 00:17:23,320 --> 00:17:25,800 Speaker 3: lead in the three way race for Mom Donnie. Okay, 329 00:17:25,840 --> 00:17:28,480 Speaker 3: that's a little bit more restrained, and we're putting these 330 00:17:28,520 --> 00:17:30,560 Speaker 3: up on the screen for you so you can play 331 00:17:30,600 --> 00:17:34,600 Speaker 3: along on your home game. The Quinnipiac University pull out today, however, 332 00:17:35,600 --> 00:17:39,360 Speaker 3: shows US forty three percent of likely voters support Mom Donnie, 333 00:17:40,240 --> 00:17:44,800 Speaker 3: putting him only ten points ahead of Andrew Cuomo. Let's 334 00:17:44,800 --> 00:17:46,680 Speaker 3: play it to the panel and get their sense here. 335 00:17:46,840 --> 00:17:49,960 Speaker 3: Lisa Camuso Miller is with US Today, Republican strategist, no 336 00:17:50,000 --> 00:17:53,520 Speaker 3: stranger to New York and New Jersey politics, former RNC 337 00:17:53,520 --> 00:17:57,360 Speaker 3: Communications director and senior vice president with Rock Solutions. She's 338 00:17:57,400 --> 00:17:59,800 Speaker 3: the host of the Friday Reporter podcast. Maggan Hayes is 339 00:17:59,800 --> 00:18:03,840 Speaker 3: with a as well, Democratic strategist and special former special 340 00:18:03,880 --> 00:18:06,760 Speaker 3: assistant to President Biden. Great to have you both here, Lisa, 341 00:18:06,800 --> 00:18:09,919 Speaker 3: I'll start with you in your old backyard. What do 342 00:18:09,960 --> 00:18:11,760 Speaker 3: you do when you're trying to read a race that 343 00:18:11,840 --> 00:18:14,440 Speaker 3: has this much noise in the polling numbers. I'm sure 344 00:18:14,440 --> 00:18:17,440 Speaker 3: that most campaigns would be very happy with a double 345 00:18:17,480 --> 00:18:20,680 Speaker 3: digit lead, but that's a far cry between twenty five 346 00:18:20,720 --> 00:18:22,920 Speaker 3: percent and ten percent for Mom Donnie. 347 00:18:23,920 --> 00:18:26,920 Speaker 9: They're still pretty good numbers, though, Joe, you know it's 348 00:18:26,920 --> 00:18:28,159 Speaker 9: going to I think it's going to come out to 349 00:18:28,200 --> 00:18:31,439 Speaker 9: turn out. Sounds like early voting is really happening, happening strong, 350 00:18:31,480 --> 00:18:33,120 Speaker 9: and a lot of the I mean sounds like Brooklyn 351 00:18:33,200 --> 00:18:35,639 Speaker 9: is really leading the race here, Staten Island and the 352 00:18:35,640 --> 00:18:37,440 Speaker 9: Bronx are also lagging behind. 353 00:18:38,119 --> 00:18:40,000 Speaker 7: So it's going to come down to what the issues are. 354 00:18:40,040 --> 00:18:43,080 Speaker 9: And the issues are street safety and economic stability, and 355 00:18:43,119 --> 00:18:44,440 Speaker 9: those are the ones that are really going to be 356 00:18:44,480 --> 00:18:47,800 Speaker 9: interesting to see who comes through. But you know, my 357 00:18:47,960 --> 00:18:50,800 Speaker 9: money has got to still be on Mondanie all the way. 358 00:18:50,840 --> 00:18:52,160 Speaker 7: Even though Cuomo really. 359 00:18:51,920 --> 00:18:54,439 Speaker 9: Does have an operation, he has a political operation that 360 00:18:54,480 --> 00:18:57,240 Speaker 9: he's used and used well over time. New York City 361 00:18:57,320 --> 00:18:59,240 Speaker 9: is a far different animal than New York State. 362 00:19:00,359 --> 00:19:03,800 Speaker 3: Yeah, for sure, What do you think of these numbers, Megan? 363 00:19:03,880 --> 00:19:07,320 Speaker 3: How do you spell blowout ten percent or twenty five percent? 364 00:19:07,520 --> 00:19:09,800 Speaker 10: I think anything you only have to win by one vote. 365 00:19:09,840 --> 00:19:11,880 Speaker 10: So I think that he's you know, these pulling numbers. 366 00:19:11,920 --> 00:19:13,840 Speaker 10: If there any indicators are showing that he'll be fine 367 00:19:13,880 --> 00:19:15,639 Speaker 10: and it will be probably be an early night. I 368 00:19:15,680 --> 00:19:17,960 Speaker 10: do think it's interesting that you see some more business 369 00:19:18,119 --> 00:19:22,000 Speaker 10: people and more the wealthy class of New York City 370 00:19:22,040 --> 00:19:23,000 Speaker 10: starting to sort of. 371 00:19:22,960 --> 00:19:24,560 Speaker 11: Get a little bit anxious, and you see them. 372 00:19:24,440 --> 00:19:27,400 Speaker 10: Getting more involved, more commercials going up, so I don't think. 373 00:19:27,400 --> 00:19:28,840 Speaker 10: I think it's a little too late for that, but 374 00:19:28,880 --> 00:19:31,199 Speaker 10: I do think the early vote is the numbers are 375 00:19:31,200 --> 00:19:33,280 Speaker 10: already staggering to what they have been in the past. 376 00:19:33,400 --> 00:19:36,119 Speaker 3: Well, let's talk about Andrew Cuomo here for a moment, who, 377 00:19:36,160 --> 00:19:39,679 Speaker 3: by the way, was endorsed yesterday by Michael Bloomberg. To 378 00:19:39,760 --> 00:19:42,840 Speaker 3: be clear, in the New York City mayora race, Michael 379 00:19:42,840 --> 00:19:46,320 Speaker 3: Bloomberg is also donated to a super pack supporting Cuomo, 380 00:19:46,840 --> 00:19:49,640 Speaker 3: and Michael Bloomberg is, of course the founder and majority 381 00:19:49,680 --> 00:19:52,120 Speaker 3: owner of Bloomberg LP, the parent company of Bloomberg TV 382 00:19:52,200 --> 00:19:55,560 Speaker 3: and Radio. So here we are whether endorsements matter in 383 00:19:55,600 --> 00:19:59,439 Speaker 3: this case, could be its own show here, Megan, But 384 00:19:59,480 --> 00:20:03,880 Speaker 3: we're looking at a world in which moderate Democrats and 385 00:20:04,000 --> 00:20:07,840 Speaker 3: Republicans are warming up to the idea of Andrew Cuomo 386 00:20:07,920 --> 00:20:08,440 Speaker 3: as mayor. 387 00:20:08,480 --> 00:20:09,520 Speaker 2: Could it make a difference. 388 00:20:10,040 --> 00:20:11,480 Speaker 10: I just think it's a little too late, and I 389 00:20:11,480 --> 00:20:14,520 Speaker 10: think at three person race, it's interesting because people wanted 390 00:20:14,560 --> 00:20:16,240 Speaker 10: Curtius Lee want to drop out, But I'm not sure 391 00:20:16,240 --> 00:20:18,199 Speaker 10: that that really makes a difference if Republicans are going 392 00:20:18,280 --> 00:20:20,159 Speaker 10: to vote for somebody that they're going to vote for Cuomo. 393 00:20:20,800 --> 00:20:23,040 Speaker 11: So I just think it's a little too late. 394 00:20:23,080 --> 00:20:25,600 Speaker 10: I think that maybe if this was going, if we 395 00:20:25,600 --> 00:20:28,760 Speaker 10: were having this conversation three four weeks ago, we might 396 00:20:28,760 --> 00:20:31,240 Speaker 10: see a different outcome next week. I just I just 397 00:20:31,240 --> 00:20:33,480 Speaker 10: think that he's running. The clock is running out here. 398 00:20:33,760 --> 00:20:36,639 Speaker 3: What would you tell Andrew Cuomo to do, as a 399 00:20:36,680 --> 00:20:39,920 Speaker 3: Republican strategist, Lisa, to try to get those votes over 400 00:20:39,920 --> 00:20:40,879 Speaker 3: the next couple of days. 401 00:20:42,040 --> 00:20:44,240 Speaker 9: I mean, he's got to continue to talk about stability. 402 00:20:44,240 --> 00:20:46,520 Speaker 9: I mean Republicans the market in New York City, they 403 00:20:46,560 --> 00:20:48,800 Speaker 9: like stability. They like to know what to expect, and 404 00:20:48,880 --> 00:20:50,920 Speaker 9: they like to know that someone that can come into 405 00:20:50,920 --> 00:20:53,040 Speaker 9: that office can actually make a difference. So that's the 406 00:20:53,080 --> 00:20:56,240 Speaker 9: message that Cuomo, I think, has been resoundingly using over 407 00:20:56,280 --> 00:21:00,760 Speaker 9: and over again. Experience, experience, experience. Voters in New York 408 00:21:00,800 --> 00:21:02,600 Speaker 9: have made this decision before. I mean, we've seen the 409 00:21:02,680 --> 00:21:06,600 Speaker 9: last two mayors that were elected. There were unconventional candidates. 410 00:21:06,600 --> 00:21:08,199 Speaker 9: I think New York likes to switch it up, and 411 00:21:08,200 --> 00:21:10,440 Speaker 9: I think Mamzani's going to be just fine on election night. 412 00:21:10,640 --> 00:21:12,920 Speaker 9: But if I'm manager Cuomo, I'm talking about stability and 413 00:21:12,960 --> 00:21:15,400 Speaker 9: I'm talking about predictability, because that's I think what people 414 00:21:15,440 --> 00:21:17,960 Speaker 9: want to see, especially with a president that represents a 415 00:21:17,960 --> 00:21:18,600 Speaker 9: little less of that. 416 00:21:20,240 --> 00:21:25,640 Speaker 3: Interesting In terms of other endorsements, Tom Swazi, even Mike Lawler, 417 00:21:26,440 --> 00:21:32,240 Speaker 3: the Republican has endorsed Andrew Cuomo. Pretty fascinating to consider where. 418 00:21:32,040 --> 00:21:34,160 Speaker 2: We're at here. When Mike Lawler. 419 00:21:33,880 --> 00:21:36,600 Speaker 3: Is endorsing Andrew Cuomo, what does that say about the race. 420 00:21:36,640 --> 00:21:39,119 Speaker 3: I guess it's a statement more on Momdani than it is. 421 00:21:39,119 --> 00:21:41,800 Speaker 10: The that's a vote against Momdami, not for Andrew Quomo. 422 00:21:41,800 --> 00:21:43,920 Speaker 10: And I think that's a lot of what people are doing. 423 00:21:43,960 --> 00:21:45,840 Speaker 10: It's it's very similar to what you saw Democrats do 424 00:21:45,880 --> 00:21:48,280 Speaker 10: in twenty four They voted against Trump, not necessarily for 425 00:21:48,400 --> 00:21:52,560 Speaker 10: Kamala Harris. So there's a lot of parallels there. But 426 00:21:52,720 --> 00:21:55,480 Speaker 10: I mean, I just their numbers aren't there for Cuomo 427 00:21:55,600 --> 00:21:57,040 Speaker 10: to win at this point. But I do think it's 428 00:21:57,080 --> 00:21:59,520 Speaker 10: important for people who do not believe in his views 429 00:21:59,680 --> 00:22:02,399 Speaker 10: to endorse somebody else. I think you just shouldn't always 430 00:22:02,440 --> 00:22:04,320 Speaker 10: go along with your party just because So I do 431 00:22:04,600 --> 00:22:06,240 Speaker 10: have a lot of respect for Tom Swasey and for 432 00:22:06,320 --> 00:22:08,119 Speaker 10: Mike Wahler for coming out and endorsing Cuomo. 433 00:22:08,240 --> 00:22:11,240 Speaker 3: Yeah, well, so you know, the real stuff comes down 434 00:22:11,280 --> 00:22:14,480 Speaker 3: sometimes to how local you can get Lisa, you reminded 435 00:22:14,600 --> 00:22:19,160 Speaker 3: us in the New Jersey gubernatorial race that the difference 436 00:22:19,200 --> 00:22:24,119 Speaker 3: between pork Roll and Taylor Ham could infect declare the 437 00:22:24,119 --> 00:22:26,080 Speaker 3: winner in this race between Mikey Cheryl. 438 00:22:27,119 --> 00:22:28,960 Speaker 7: I'm not sure that it was me. 439 00:22:28,920 --> 00:22:33,240 Speaker 3: If you want, it was Knowing, which was rich. So 440 00:22:33,320 --> 00:22:35,120 Speaker 3: I'm going to ask you again. You remember in the 441 00:22:35,400 --> 00:22:38,160 Speaker 3: in the last debate for New York mayor, they were 442 00:22:38,200 --> 00:22:41,880 Speaker 3: asked at the end, what is your breakfast bodega order? 443 00:22:42,520 --> 00:22:44,080 Speaker 3: We're gonna have to see if we can pull this 444 00:22:44,160 --> 00:22:46,359 Speaker 3: out here. We can't use it all right. I guess 445 00:22:46,680 --> 00:22:49,840 Speaker 3: I'll get suit if I play that. Mom Donnie had 446 00:22:49,880 --> 00:22:52,280 Speaker 3: a different answer than the other two. I think it 447 00:22:52,359 --> 00:22:54,080 Speaker 3: was something on a bagel. It was egg on a 448 00:22:54,080 --> 00:22:56,920 Speaker 3: bagel with Plapanio's. I'll have to go back and read this. 449 00:22:56,960 --> 00:22:57,679 Speaker 7: It's no salt. 450 00:22:58,640 --> 00:23:01,639 Speaker 3: That was Andrew Cuomo in SLIEWA had no salts. But 451 00:23:01,760 --> 00:23:05,040 Speaker 3: guess what he just landed, Mom, Donnie landed the United 452 00:23:05,119 --> 00:23:10,080 Speaker 3: Bodegas of America endorsement. Lisa, is this thing shutdown? 453 00:23:11,720 --> 00:23:13,840 Speaker 9: I don't know that that makes a difference, but those 454 00:23:13,920 --> 00:23:16,639 Speaker 9: are a vote from small businesses that are looking at 455 00:23:16,640 --> 00:23:18,880 Speaker 9: a candidate that they think can make a difference for them, 456 00:23:19,080 --> 00:23:21,240 Speaker 9: and that's where that that's where that makes a difference, 457 00:23:21,280 --> 00:23:23,399 Speaker 9: I think more than anything, because that city is full 458 00:23:23,840 --> 00:23:26,840 Speaker 9: of small business owners who really want a mayor that 459 00:23:26,920 --> 00:23:27,840 Speaker 9: can help make. 460 00:23:27,800 --> 00:23:31,600 Speaker 2: Change egg cheese hallapin you thank you CC. 461 00:23:32,000 --> 00:23:35,680 Speaker 3: Not just small business, but small businesses owned and operated 462 00:23:35,680 --> 00:23:36,359 Speaker 3: by immigrants. 463 00:23:36,560 --> 00:23:36,760 Speaker 5: Yeah. 464 00:23:36,760 --> 00:23:38,800 Speaker 10: Actually, I think that's actually really interesting for someone who 465 00:23:38,800 --> 00:23:41,560 Speaker 10: wants government run grocery stores at Thedegas. The Union for 466 00:23:41,560 --> 00:23:44,240 Speaker 10: the Vedegas is coming, which they opposed initially exactly, So 467 00:23:44,240 --> 00:23:46,320 Speaker 10: I do think that is a really interesting dynamic here. 468 00:23:46,359 --> 00:23:48,520 Speaker 10: But I also think they see the writing on the wall. 469 00:23:48,520 --> 00:23:50,160 Speaker 10: They're reading the same polls we are, and they also 470 00:23:50,200 --> 00:23:51,800 Speaker 10: know that they're going to have to work with Mndonnie's 471 00:23:51,800 --> 00:23:53,960 Speaker 10: offic They're going to have to rely on him for 472 00:23:54,000 --> 00:23:57,000 Speaker 10: different regulations, all sorts of things that the city government 473 00:23:57,040 --> 00:23:59,720 Speaker 10: is irresponsible for. So it's a smart play political play 474 00:23:59,720 --> 00:24:00,000 Speaker 10: by them. 475 00:24:00,240 --> 00:24:03,560 Speaker 3: Yeah, Lisa, this is going to take place, of course, 476 00:24:03,600 --> 00:24:05,920 Speaker 3: the same day that we have elections, as I mentioned 477 00:24:06,080 --> 00:24:08,520 Speaker 3: in Virginia and New Jersey. Are you in the same 478 00:24:08,520 --> 00:24:11,760 Speaker 3: place when it comes to Chitarelly in New Jersey? 479 00:24:13,760 --> 00:24:14,400 Speaker 7: Yes, I am. 480 00:24:14,440 --> 00:24:16,520 Speaker 9: I'm still watching it closely and I think that it's 481 00:24:16,560 --> 00:24:19,159 Speaker 9: going to be a very close race in New Jersey. 482 00:24:19,160 --> 00:24:22,520 Speaker 9: New Jersey never disappoints. It's always down to the last minute. 483 00:24:22,600 --> 00:24:23,840 Speaker 7: But I think it's going to be a good. 484 00:24:23,800 --> 00:24:26,360 Speaker 9: Night for Democrats, and I think that I hope for 485 00:24:26,400 --> 00:24:28,200 Speaker 9: them that they don't over index on the fact that 486 00:24:28,240 --> 00:24:31,719 Speaker 9: they were successful, because it's less about it's less about 487 00:24:32,000 --> 00:24:34,240 Speaker 9: their candidates, more about the issues, and they're going to 488 00:24:34,280 --> 00:24:36,720 Speaker 9: have to pay very close attention to what this means 489 00:24:36,720 --> 00:24:37,560 Speaker 9: for the midterms. 490 00:24:38,560 --> 00:24:40,840 Speaker 3: I think you're expecting a blowout for the Democrat in Virginia, 491 00:24:40,920 --> 00:24:43,800 Speaker 3: Abigail Spanberger. How about New Jersey? How come Mikey Cheryl 492 00:24:43,880 --> 00:24:44,960 Speaker 3: is not doing better right now? 493 00:24:45,280 --> 00:24:47,119 Speaker 10: I think, just like what Lisa was saying, I think 494 00:24:47,119 --> 00:24:49,240 Speaker 10: affordability issues and I think that those are really hard 495 00:24:49,240 --> 00:24:52,160 Speaker 10: issues to break through. And I know she's really leaned 496 00:24:52,160 --> 00:24:54,320 Speaker 10: into the energy prices. I know she's leaned into some 497 00:24:54,440 --> 00:24:57,760 Speaker 10: child safety issues. I think the Trump factor here is 498 00:24:57,760 --> 00:25:01,000 Speaker 10: really important. I think Chitterrelly was really hanging his hat 499 00:25:01,000 --> 00:25:02,879 Speaker 10: on Trump, and I do think that is concerning for 500 00:25:02,920 --> 00:25:06,520 Speaker 10: a lot of Democrats and people just the crazier things 501 00:25:06,520 --> 00:25:08,120 Speaker 10: that Trump does, the worst it is. I think when 502 00:25:08,119 --> 00:25:09,800 Speaker 10: you're in some of these states for the midterms. But 503 00:25:09,840 --> 00:25:11,920 Speaker 10: I do agree with Lisa, Dems need to be really 504 00:25:11,920 --> 00:25:15,280 Speaker 10: careful here. If they are victorious, like it is showing 505 00:25:15,280 --> 00:25:18,000 Speaker 10: that they might be, they need to really watch and 506 00:25:18,040 --> 00:25:20,560 Speaker 10: really hone in on those affordability issues leaning into the 507 00:25:20,560 --> 00:25:22,000 Speaker 10: midterms and not stay. 508 00:25:21,720 --> 00:25:26,080 Speaker 2: Comfortable understood that. Does she have the energy, the charisma? 509 00:25:26,400 --> 00:25:28,360 Speaker 3: Is she the right candidate, because there's been a lot 510 00:25:28,400 --> 00:25:30,360 Speaker 3: of questions about candidate quality here. 511 00:25:30,680 --> 00:25:32,200 Speaker 10: I think she's great and I think that she will 512 00:25:32,240 --> 00:25:34,520 Speaker 10: be a great governor. She is very moderate, she knows 513 00:25:34,520 --> 00:25:36,399 Speaker 10: what she's doing. She will govern on day one. I 514 00:25:36,400 --> 00:25:38,879 Speaker 10: think she is a new generation for Democrats. She has 515 00:25:38,920 --> 00:25:41,639 Speaker 10: a national security background. She brings different style of leadership, 516 00:25:41,760 --> 00:25:44,359 Speaker 10: and that's okay, and the Democratic Party meets that. And 517 00:25:44,400 --> 00:25:48,040 Speaker 10: I welcome her and I welcome Abigail Spamberger, and if 518 00:25:48,040 --> 00:25:50,520 Speaker 10: they both are victorious, I think they are great leaders 519 00:25:50,520 --> 00:25:51,760 Speaker 10: to look forward to for a party. 520 00:25:51,880 --> 00:25:54,200 Speaker 3: Anyone who's living in Virginia or the DC area looking 521 00:25:54,240 --> 00:25:56,760 Speaker 3: forward to these ads coming down, Lisa, where will New 522 00:25:56,840 --> 00:25:58,160 Speaker 3: Jersey be decided? 523 00:26:00,440 --> 00:26:03,120 Speaker 9: I think I'd pay very close attention to North Jersey, 524 00:26:03,240 --> 00:26:05,800 Speaker 9: right and the shadows of Wall Street where folks live. 525 00:26:05,840 --> 00:26:08,399 Speaker 9: I mean, Bergen County will always go Republican, but some 526 00:26:08,440 --> 00:26:10,800 Speaker 9: of those other northern counties went for Trump last go around, 527 00:26:10,800 --> 00:26:12,240 Speaker 9: and so that's going to be We're going to have to. 528 00:26:12,280 --> 00:26:13,040 Speaker 7: Watch and see. 529 00:26:13,200 --> 00:26:15,040 Speaker 9: The other thing too, Joe, I'd like to point out 530 00:26:15,080 --> 00:26:16,840 Speaker 9: is that this is the first time in my history 531 00:26:16,840 --> 00:26:19,360 Speaker 9: that I can ever remember that two females would lead 532 00:26:19,400 --> 00:26:21,960 Speaker 9: the governor's office if in fact they both win on Tuesday. 533 00:26:22,960 --> 00:26:23,600 Speaker 2: How about that? 534 00:26:24,440 --> 00:26:27,840 Speaker 3: Producer James reminds us the Emerson poll that I mentioned 535 00:26:28,119 --> 00:26:30,399 Speaker 3: for the New York My rural race has numbers on 536 00:26:30,480 --> 00:26:35,400 Speaker 3: New Jersey gubernatorial Cheryl is forty nine to forty eight 537 00:26:35,640 --> 00:26:36,240 Speaker 3: over Shita. 538 00:26:36,240 --> 00:26:37,919 Speaker 2: Really is that how close this race is? 539 00:26:38,400 --> 00:26:38,600 Speaker 5: Yeah? 540 00:26:38,640 --> 00:26:40,320 Speaker 11: I think so. I think it's going to be extremely close. 541 00:26:40,680 --> 00:26:42,760 Speaker 10: She might be more than one point, but it is 542 00:26:42,760 --> 00:26:44,120 Speaker 10: going to be close, and it will not be called 543 00:26:44,200 --> 00:26:45,439 Speaker 10: right away, you know how some of these are just 544 00:26:45,480 --> 00:26:47,479 Speaker 10: called the close. I think it's going to you know, 545 00:26:47,520 --> 00:26:49,679 Speaker 10: go ten eleven, maybe even midnight. So I think that 546 00:26:49,760 --> 00:26:51,520 Speaker 10: Virginia and New York will be called much earlier. But 547 00:26:51,560 --> 00:26:53,440 Speaker 10: I think we're in for a little bit more of 548 00:26:53,480 --> 00:26:54,280 Speaker 10: a wait for New Jersey. 549 00:26:54,400 --> 00:26:55,840 Speaker 2: You see this as a one point contest. 550 00:26:55,880 --> 00:26:58,879 Speaker 9: Lisa, I think it can be very close. I mean, Joe, 551 00:26:58,920 --> 00:27:00,199 Speaker 9: I hate to say it out loud, but it's the 552 00:27:00,240 --> 00:27:02,399 Speaker 9: kind of thing. Last time Jack Chitarelli ran for governor, 553 00:27:02,440 --> 00:27:04,520 Speaker 9: he was so close that they had a recount. So 554 00:27:04,560 --> 00:27:06,240 Speaker 9: I think that there's going to be a lot of 555 00:27:06,960 --> 00:27:08,560 Speaker 9: It could be a late night, we could be well 556 00:27:08,560 --> 00:27:10,800 Speaker 9: into days after the election. That's how close I think 557 00:27:10,800 --> 00:27:11,879 Speaker 9: it's going to be in New Jersey. 558 00:27:12,880 --> 00:27:14,239 Speaker 3: Well, this is going to be a riot and as 559 00:27:14,280 --> 00:27:16,600 Speaker 3: I mentioned, we'll have special coverage that'll be next Tuesday, 560 00:27:16,640 --> 00:27:19,080 Speaker 3: live from New York here on Balance of Power. 561 00:27:19,680 --> 00:27:21,399 Speaker 2: Many thanks to our great panel. 562 00:27:21,440 --> 00:27:23,960 Speaker 3: This is a great conversation and fun to get ready 563 00:27:24,000 --> 00:27:26,400 Speaker 3: for these elections with Lisa Kumusso Miller and Meghan Hayes. 564 00:27:26,440 --> 00:27:28,480 Speaker 3: We thank you both. We've got another breaker here on 565 00:27:28,520 --> 00:27:31,639 Speaker 3: the terminal. The FAA has just issued a groundstop for 566 00:27:31,920 --> 00:27:36,120 Speaker 3: Washington Reagan National Airport. It's not a mechanical problem this time. 567 00:27:36,160 --> 00:27:38,360 Speaker 3: They say it's due to staffing. So here we are. 568 00:27:38,440 --> 00:27:40,560 Speaker 3: We have arrived and we'll have more on this coming up, 569 00:27:40,560 --> 00:27:43,320 Speaker 3: and we spend some time with Congressman Jake Auchincloss, the 570 00:27:43,320 --> 00:27:46,600 Speaker 3: Democrat from Massachusetts. Up next here on Balance of Power. 571 00:27:47,080 --> 00:27:50,080 Speaker 3: Only available on Bloomberg TV and radio. Stay with us 572 00:27:50,119 --> 00:27:52,320 Speaker 3: on Balance of Power. We'll have much more coming up 573 00:27:52,400 --> 00:27:52,840 Speaker 3: after this. 574 00:27:57,119 --> 00:28:00,600 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 575 00:28:00,680 --> 00:28:03,760 Speaker 1: us live weekdays at noon and five pm Eastern on 576 00:28:03,880 --> 00:28:07,119 Speaker 1: Apple Cockway and Android Auto with the Blueberg Business app. 577 00:28:07,160 --> 00:28:10,160 Speaker 1: You can also listen live on Amazon Alexa from our 578 00:28:10,200 --> 00:28:14,680 Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven thirty. 579 00:28:16,000 --> 00:28:17,200 Speaker 2: We've got a ground stop. 580 00:28:17,280 --> 00:28:21,359 Speaker 3: Another one at National Airport Reagan National here in DC. 581 00:28:21,640 --> 00:28:24,800 Speaker 3: That's DCA if you want the airport code, and it's 582 00:28:24,880 --> 00:28:27,440 Speaker 3: not new. We've been seeing a lot of ground stops there. 583 00:28:27,880 --> 00:28:30,199 Speaker 3: Yesterday there was one. In fact, it was blamed on 584 00:28:30,640 --> 00:28:34,520 Speaker 3: military activity. Today it's a different matter. It's due to staffing. 585 00:28:35,200 --> 00:28:37,600 Speaker 3: And this is something that we had feared. Many have 586 00:28:37,720 --> 00:28:41,160 Speaker 3: predicted that we begin seeing ground stops at airports around 587 00:28:41,160 --> 00:28:43,800 Speaker 3: the country because of the government shutdown. Remembering that air 588 00:28:43,800 --> 00:28:47,240 Speaker 3: traffic controllers are not being paid. Many are working sixty 589 00:28:47,280 --> 00:28:50,080 Speaker 3: hours a week already were and suddenly they're doing so 590 00:28:50,280 --> 00:28:53,440 Speaker 3: without a paycheck. Of course, they will be made whole, 591 00:28:53,480 --> 00:28:58,320 Speaker 3: presumably when this is over. But the unions are already squawking, 592 00:28:58,360 --> 00:29:01,040 Speaker 3: and we have seen some slow downs at airports. We've 593 00:29:01,040 --> 00:29:03,040 Speaker 3: seen a lot of delays and cancelations, but not a 594 00:29:03,080 --> 00:29:06,800 Speaker 3: full on groundstop like this, certainly in the nation's capital 595 00:29:06,880 --> 00:29:09,000 Speaker 3: due to staffing. This is going to be the subject 596 00:29:09,080 --> 00:29:11,720 Speaker 3: of a meeting taking place today at the White House. 597 00:29:11,760 --> 00:29:14,400 Speaker 3: By the way, there's a live view of National Airport 598 00:29:14,400 --> 00:29:15,920 Speaker 3: if you're with us on Bloomberg TV. 599 00:29:16,400 --> 00:29:17,040 Speaker 2: JD Vance. 600 00:29:17,080 --> 00:29:19,440 Speaker 3: The Vice President will be holding forth with the CEOs 601 00:29:19,440 --> 00:29:22,200 Speaker 3: of American and United Airlines, and will also be with 602 00:29:22,280 --> 00:29:26,840 Speaker 3: Transportation Secretary Sean Duffy and Chris Sanunu, who now runs, 603 00:29:27,000 --> 00:29:30,240 Speaker 3: as he told us in person on a recent edition 604 00:29:30,280 --> 00:29:34,720 Speaker 3: of Balance of Power, the Airline Trade Group. That will 605 00:29:34,760 --> 00:29:38,720 Speaker 3: all be part of this conversation today. Whether something comes 606 00:29:38,720 --> 00:29:40,280 Speaker 3: from this in terms of a new policy or a 607 00:29:40,280 --> 00:29:43,560 Speaker 3: way to pay air traffic controllers is another matter, but 608 00:29:43,640 --> 00:29:46,600 Speaker 3: it's where we start our conversation with Congressman Jake Auchincloss, 609 00:29:46,640 --> 00:29:50,800 Speaker 3: the Democrat from Massachusetts, importantly serves on the Committee on 610 00:29:50,920 --> 00:29:54,160 Speaker 3: Energy and Commerce, which oversees the FAA, among many other 611 00:29:54,200 --> 00:29:56,719 Speaker 3: important entities, and he's with us now on day thirty 612 00:29:57,400 --> 00:29:58,480 Speaker 3: of the government shut down. 613 00:29:58,480 --> 00:30:00,000 Speaker 2: Congressman it's good to see you. 614 00:30:00,160 --> 00:30:02,480 Speaker 3: How concerned are you or maybe you can even tell 615 00:30:02,560 --> 00:30:05,360 Speaker 3: us based on what you're hearing of more events like 616 00:30:05,440 --> 00:30:07,280 Speaker 3: these happening around the country. 617 00:30:08,480 --> 00:30:09,120 Speaker 5: Inevitable. 618 00:30:09,160 --> 00:30:12,240 Speaker 12: The air traffic controls had been warning about this. 619 00:30:13,280 --> 00:30:14,960 Speaker 5: They're working without being paid. 620 00:30:15,400 --> 00:30:19,160 Speaker 12: Contrast that with Speaker Johnson, who's being paid without working. 621 00:30:19,840 --> 00:30:22,200 Speaker 12: The Speaker needs to call the House back into session. 622 00:30:22,520 --> 00:30:26,040 Speaker 12: I will go to Washington today, probably by train, not 623 00:30:26,120 --> 00:30:30,760 Speaker 12: by airplane, and start negotiating with Republicans. Before this shutdown, 624 00:30:30,840 --> 00:30:33,760 Speaker 12: I offered a series of proposals to get to yes, 625 00:30:33,840 --> 00:30:36,480 Speaker 12: from reversing the worst the Medicaid cuts, to funding local 626 00:30:36,560 --> 00:30:40,560 Speaker 12: law enforcement, to giving Congress a vote on tariffs. And 627 00:30:40,640 --> 00:30:44,240 Speaker 12: it's been radio silenced since then. The President and Republicans 628 00:30:44,280 --> 00:30:46,720 Speaker 12: are in charge. This is their responsibility. 629 00:30:48,400 --> 00:30:50,640 Speaker 3: Well, you know it's something the House has been out. 630 00:30:50,640 --> 00:30:54,000 Speaker 3: What you probably know more than I, better than I. Congressman, 631 00:30:54,000 --> 00:30:56,760 Speaker 3: I think forty five days since before the government actually 632 00:30:56,760 --> 00:30:59,920 Speaker 3: shut down, having passed the clean cr and the speaker 633 00:31:00,720 --> 00:31:01,960 Speaker 3: rhetoric remains the same. 634 00:31:02,000 --> 00:31:02,920 Speaker 2: We've done our job. 635 00:31:03,000 --> 00:31:05,720 Speaker 3: You let us know the United States Senate when you're 636 00:31:05,760 --> 00:31:08,440 Speaker 3: ready to do yours. But we have heard that John 637 00:31:08,520 --> 00:31:12,240 Speaker 3: Thune is preparing to start talks with some rank and 638 00:31:12,280 --> 00:31:14,800 Speaker 3: file Democrats. Do you have any sense that that's true 639 00:31:14,880 --> 00:31:15,880 Speaker 3: or when that might start. 640 00:31:17,520 --> 00:31:20,600 Speaker 12: I do think that's true, and we need to get 641 00:31:20,720 --> 00:31:23,520 Speaker 12: to yes. And again, the proposals that I and other 642 00:31:23,960 --> 00:31:27,720 Speaker 12: Democrats in the House put forward are not partisan proposals. 643 00:31:27,760 --> 00:31:30,640 Speaker 12: I mean, allowing Congress to vote on the tariffs, which 644 00:31:30,680 --> 00:31:33,000 Speaker 12: have been the biggest tax hike in modern American history, 645 00:31:33,000 --> 00:31:36,720 Speaker 12: and that we're imposed unilaterally and illegally by the President 646 00:31:37,040 --> 00:31:40,360 Speaker 12: is not exactly like a lefty talking point. I mean 647 00:31:40,360 --> 00:31:43,720 Speaker 12: that is just right down the middle of constitutional governance 648 00:31:44,080 --> 00:31:45,160 Speaker 12: and the middle class. 649 00:31:47,600 --> 00:31:49,720 Speaker 3: Tell us more about what's happening in the air traffic 650 00:31:49,720 --> 00:31:54,800 Speaker 3: control towers and what could be done to prevent massive closures. 651 00:31:54,880 --> 00:31:57,160 Speaker 3: You said it's inevitable that we'd see things like this. 652 00:31:57,200 --> 00:32:02,280 Speaker 3: Can anything be done to contain these groundstops at airports 653 00:32:02,320 --> 00:32:04,280 Speaker 3: if in fact controllers stop showing up. 654 00:32:05,720 --> 00:32:06,760 Speaker 5: I don't want to conjecture. 655 00:32:06,800 --> 00:32:09,479 Speaker 12: What I can say from my time talking to air 656 00:32:09,480 --> 00:32:12,360 Speaker 12: traffic controllers when I was on Transportation Infrastructure the Committee 657 00:32:12,360 --> 00:32:16,480 Speaker 12: with Jurisdiction is that when you have these government shutdowns, 658 00:32:16,840 --> 00:32:20,280 Speaker 12: the air traffic controllers will start taking other types of jobs. 659 00:32:20,320 --> 00:32:23,640 Speaker 12: To make ends meet, and we'll call out in order 660 00:32:23,680 --> 00:32:25,800 Speaker 12: to go to those other jobs, they got to put 661 00:32:25,800 --> 00:32:27,280 Speaker 12: food on the table for their family, They got to 662 00:32:27,320 --> 00:32:30,560 Speaker 12: make rent, and that will lead to staffing shortages, which 663 00:32:30,720 --> 00:32:33,360 Speaker 12: creates unsafe conditions, which creates groundstops. 664 00:32:34,920 --> 00:32:37,920 Speaker 3: And here we are with potentially more in the offing. 665 00:32:38,040 --> 00:32:42,000 Speaker 3: Does November onet matter any more? Congressman. That's open enrollment, 666 00:32:42,040 --> 00:32:45,920 Speaker 3: of course, and potentially the end of some SNAP benefits, 667 00:32:45,960 --> 00:32:48,320 Speaker 3: the beginning of the end. But now there are efforts 668 00:32:48,360 --> 00:32:51,040 Speaker 3: to try to overcome those legislatively, at least in terms 669 00:32:51,040 --> 00:32:53,760 Speaker 3: of the SNAP benefits. As another potential pain point is 670 00:32:53,800 --> 00:32:55,520 Speaker 3: taken off the calendar. What do you think is going 671 00:32:55,560 --> 00:32:57,760 Speaker 3: to happen when we get into the new month. 672 00:32:59,320 --> 00:32:59,960 Speaker 5: Yes, it matters. 673 00:33:00,200 --> 00:33:02,920 Speaker 12: The President calls it a Democrat program, SNAP, it's not. 674 00:33:03,040 --> 00:33:05,959 Speaker 12: It's a program for children. Two thirds of the recipients 675 00:33:05,960 --> 00:33:08,480 Speaker 12: of SNAP are families with children. This is about kids 676 00:33:08,520 --> 00:33:13,200 Speaker 12: going to school with a full belly, and illegally withholding 677 00:33:13,200 --> 00:33:15,240 Speaker 12: those SNAP funds is callous and cruel. 678 00:33:17,560 --> 00:33:20,040 Speaker 3: Your governor's taking action on this right is more. Healey 679 00:33:20,080 --> 00:33:24,000 Speaker 3: going to manage to bridge the gap here. Obviously, we 680 00:33:24,040 --> 00:33:26,280 Speaker 3: don't know how long the gap might be Congressman, but 681 00:33:26,320 --> 00:33:27,840 Speaker 3: it looks like a lot of governors, a lot of 682 00:33:27,880 --> 00:33:28,800 Speaker 3: states are stepping up. 683 00:33:30,440 --> 00:33:33,479 Speaker 12: Governor Healey's always stepping up, whether it's backfilling, science funding, 684 00:33:33,520 --> 00:33:38,840 Speaker 12: whether it's energy after the President arbitrarily canceled offshore win permits. 685 00:33:38,880 --> 00:33:43,240 Speaker 12: Now with SNAP benefits, she's always patching holes and protecting Massachusetts. 686 00:33:43,240 --> 00:33:45,360 Speaker 12: But she can't cover the full gap on SNAP. No 687 00:33:45,440 --> 00:33:48,040 Speaker 12: governor can. This is a federal program, it's federally funded. 688 00:33:48,080 --> 00:33:49,320 Speaker 12: It needs to be federally delivered. 689 00:33:51,760 --> 00:33:54,800 Speaker 3: As we spend time with Congressman Jake Auchincloss, we want 690 00:33:54,800 --> 00:33:59,640 Speaker 3: to tap your experience, Congressman, when it comes to geopolitics 691 00:33:59,800 --> 00:34:02,920 Speaker 3: and the Pentagon. Of course, you are a combat marine 692 00:34:03,000 --> 00:34:05,600 Speaker 3: veteran and will remind our audience that you commanded an 693 00:34:05,640 --> 00:34:09,799 Speaker 3: infantry in Hellman Province in Afghanistan in twenty twelve, as 694 00:34:09,800 --> 00:34:13,560 Speaker 3: well as a reconnaissance unit in Panama in twenty fourteen. 695 00:34:14,200 --> 00:34:17,080 Speaker 3: The President yesterday before he sat down with President she 696 00:34:17,280 --> 00:34:21,600 Speaker 3: took to Truth Social to talk about resuming nuclear tests 697 00:34:22,440 --> 00:34:24,080 Speaker 3: here in the United States. 698 00:34:24,120 --> 00:34:26,319 Speaker 2: I suspect you saw this. It's a pretty big deal. 699 00:34:26,480 --> 00:34:29,320 Speaker 3: Directing the Pentagon to test nuclear weapons for the first 700 00:34:29,320 --> 00:34:33,400 Speaker 3: time since nineteen ninety two. We're unfortunately not sure exactly 701 00:34:33,400 --> 00:34:35,080 Speaker 3: how this is going to work, though he said that 702 00:34:35,160 --> 00:34:38,840 Speaker 3: testing should occur quote on an equal basis unquote with 703 00:34:39,000 --> 00:34:40,120 Speaker 3: Russia and China. 704 00:34:40,600 --> 00:34:43,360 Speaker 2: Is this a smart move and what would it accomplish? 705 00:34:44,000 --> 00:34:44,320 Speaker 5: Nothing? 706 00:34:44,360 --> 00:34:46,840 Speaker 12: He's trying to saber rattle to distract from the fact 707 00:34:47,080 --> 00:34:50,960 Speaker 12: that he started a trade war with China and American 708 00:34:51,000 --> 00:34:55,480 Speaker 12: farmers are now losing it because soybeans are more fungible 709 00:34:55,520 --> 00:34:59,239 Speaker 12: than rare earth minerals, and so China gained leverage over 710 00:34:59,239 --> 00:35:02,200 Speaker 12: the United States rapidly this summer and has now used 711 00:35:02,200 --> 00:35:05,800 Speaker 12: it to cause Trump to tuck his tail between his legs, 712 00:35:05,800 --> 00:35:07,960 Speaker 12: and as he always does, he's trying to strong man 713 00:35:08,000 --> 00:35:11,360 Speaker 12: his way out of that perception. Anybody who's paying attention 714 00:35:11,480 --> 00:35:13,759 Speaker 12: sees it. Now, here's what he should have done. He 715 00:35:13,840 --> 00:35:18,440 Speaker 12: should have embarked upon a bipartisan industrial policy focused on 716 00:35:18,760 --> 00:35:23,120 Speaker 12: American energy dominance, adding two to four quads of energy 717 00:35:23,120 --> 00:35:26,640 Speaker 12: production per year, including the necessary control of a rare 718 00:35:26,680 --> 00:35:31,560 Speaker 12: earth supply chains. Number two, he should have used targeted 719 00:35:31,600 --> 00:35:35,319 Speaker 12: sanctions and tariffs for the fentanyl export issue and for 720 00:35:35,360 --> 00:35:38,400 Speaker 12: critical industries, and Congress has a lot of bipartisan legislation 721 00:35:38,440 --> 00:35:40,400 Speaker 12: for that, and then finally he should have inked a 722 00:35:40,480 --> 00:35:44,960 Speaker 12: TikTok deal again according to congressional statute that it gives 723 00:35:45,040 --> 00:35:49,120 Speaker 12: Americans control over the most important media and information platform 724 00:35:49,520 --> 00:35:52,160 Speaker 12: in the world. He has failed to do all three 725 00:35:52,200 --> 00:35:54,759 Speaker 12: of those things, and so now he's trying to blow 726 00:35:54,800 --> 00:35:56,480 Speaker 12: stuff up to make himself look tough. 727 00:35:56,520 --> 00:35:57,239 Speaker 5: It's not going to work. 728 00:35:58,480 --> 00:36:03,080 Speaker 3: Are you encouraged that Blackwell chips were not part of 729 00:36:03,160 --> 00:36:04,600 Speaker 3: any deal making yesterday? 730 00:36:06,320 --> 00:36:09,759 Speaker 12: Well, I mean the President took a stake in Nvidia's 731 00:36:10,480 --> 00:36:13,839 Speaker 12: export of chips to the Chinese Communist Party. So he's 732 00:36:13,880 --> 00:36:17,239 Speaker 12: literally trying to give the US government like equity in 733 00:36:17,880 --> 00:36:24,000 Speaker 12: equipping China to leapfrog US and AI inference. It's his 734 00:36:24,160 --> 00:36:27,920 Speaker 12: version of state directed capitalism. Is going to enrich his family, 735 00:36:28,000 --> 00:36:30,240 Speaker 12: that's for sure, with their crypto schemes, probably five billion 736 00:36:30,280 --> 00:36:32,239 Speaker 12: dollars worth, but it's not going to be good for 737 00:36:32,280 --> 00:36:34,800 Speaker 12: America Incorporated. All it's going to do is so further 738 00:36:34,880 --> 00:36:38,640 Speaker 12: uncertainty amongst investors and entrepreneurs, when what these investors and 739 00:36:38,719 --> 00:36:43,960 Speaker 12: entrepreneurs really need is abundant, clean, cheap, reliable energy. And 740 00:36:44,440 --> 00:36:47,640 Speaker 12: this president has been inhibiting rather than amplifying that that 741 00:36:47,680 --> 00:36:51,040 Speaker 12: should be our industrial policy. Forget all this crony capitalism, 742 00:36:51,360 --> 00:36:53,320 Speaker 12: focus on American energy. 743 00:36:54,400 --> 00:36:57,040 Speaker 3: We could, gosh, we could do a whole show on this, Congressman, 744 00:36:57,040 --> 00:37:00,239 Speaker 3: this is fascinating to me. When it comes to the 745 00:37:00,320 --> 00:37:02,560 Speaker 3: likes of Nvidia, Jensen Wong would say, Hey, if we 746 00:37:02,600 --> 00:37:04,719 Speaker 3: want to win the AI race in this country, you 747 00:37:04,760 --> 00:37:05,479 Speaker 3: need to get the. 748 00:37:05,440 --> 00:37:07,640 Speaker 2: World on the AI stack. 749 00:37:08,239 --> 00:37:11,600 Speaker 3: And that of course runs counter to folks like yourself, 750 00:37:11,880 --> 00:37:15,120 Speaker 3: your opinions on this. We're providing some of the highest 751 00:37:15,200 --> 00:37:17,400 Speaker 3: end AI chips to China would in fact be a 752 00:37:17,480 --> 00:37:21,160 Speaker 3: national security violation. Is Jensen Wong simply wrong about this? 753 00:37:22,680 --> 00:37:24,919 Speaker 12: Jensen Wong is talking his own book, which is what 754 00:37:25,280 --> 00:37:27,360 Speaker 12: a private company CEO is going to do. The President 755 00:37:27,440 --> 00:37:30,200 Speaker 12: United States should be looking in a long term way 756 00:37:30,360 --> 00:37:34,279 Speaker 12: about American competitiveness and the most important questions about how 757 00:37:34,280 --> 00:37:37,279 Speaker 12: the US out compeatches China and science and technology are 758 00:37:37,320 --> 00:37:39,840 Speaker 12: not about China. China's got one point three billion people. 759 00:37:40,000 --> 00:37:43,040 Speaker 12: Their kids are outperforming our kids on math and science scores. 760 00:37:43,040 --> 00:37:46,520 Speaker 12: They're investing huge amounts in basic research. China is going 761 00:37:46,920 --> 00:37:50,120 Speaker 12: to be a powerhouse. There's nothing we can do to 762 00:37:50,120 --> 00:37:53,480 Speaker 12: prevent that. What we can do is double down on 763 00:37:53,480 --> 00:37:57,200 Speaker 12: what's made this country a behemoth, the free enterprise. We 764 00:37:57,280 --> 00:37:59,960 Speaker 12: got to double the NIH and National Science Foundation budget. 765 00:38:00,040 --> 00:38:01,600 Speaker 12: We got to attract the best and brightest from the 766 00:38:01,640 --> 00:38:04,239 Speaker 12: world over. We got to protect intellectual property, guarantee a 767 00:38:04,280 --> 00:38:08,480 Speaker 12: sound currency, expand global markets for our entrepreneurs. It's all 768 00:38:08,520 --> 00:38:10,920 Speaker 12: the stuff that's simple but not easy, and this president 769 00:38:11,320 --> 00:38:15,799 Speaker 12: is replacing it with Trump Incorporated, where if you want 770 00:38:15,800 --> 00:38:17,360 Speaker 12: to do business in America, you got to buy his 771 00:38:17,480 --> 00:38:18,640 Speaker 12: son's crypto coins. 772 00:38:21,560 --> 00:38:23,280 Speaker 2: You mentioned energy, Congressman. 773 00:38:23,360 --> 00:38:26,600 Speaker 3: We're coming off the Nvidia GtC conference this week here 774 00:38:26,640 --> 00:38:29,799 Speaker 3: in Washington, d C. And there's been enormous talk, of course, 775 00:38:29,840 --> 00:38:33,120 Speaker 3: about harnessing clean, renewable energy for data centers that are 776 00:38:33,160 --> 00:38:36,839 Speaker 3: popping up like weeds all over the country here. Some 777 00:38:36,920 --> 00:38:40,319 Speaker 3: think the answer is nuclear, small modular reactors, but that 778 00:38:40,360 --> 00:38:42,560 Speaker 3: could take some time. And so I'm wondering what it 779 00:38:42,600 --> 00:38:45,640 Speaker 3: is you refer to, Is it natural gas? How do 780 00:38:45,719 --> 00:38:50,000 Speaker 3: we get these data centers powered up without hiking electricity 781 00:38:50,040 --> 00:38:53,040 Speaker 3: bills in the state of Massachusetts. 782 00:38:53,840 --> 00:38:57,439 Speaker 12: And electricity bills are going up double digits in Massachusetts 783 00:38:57,480 --> 00:38:59,640 Speaker 12: and Virginia. In other states, It's going to be different 784 00:38:59,640 --> 00:39:02,319 Speaker 12: in different states. Some places it might be hydro Massachusetts 785 00:39:02,360 --> 00:39:03,440 Speaker 12: off forro a win could have been part of the 786 00:39:03,440 --> 00:39:06,600 Speaker 12: solution until the President canceled it. It's going to be 787 00:39:07,800 --> 00:39:11,760 Speaker 12: natural gas in some areas. I think one common one though, 788 00:39:12,160 --> 00:39:15,919 Speaker 12: is next generation geothermal. You've got companies like Quays, which 789 00:39:15,960 --> 00:39:18,680 Speaker 12: is doing millimeter wave drilling that can go five to 790 00:39:18,719 --> 00:39:21,680 Speaker 12: seven miles deep, which means that it's hot everywhere. 791 00:39:21,760 --> 00:39:23,080 Speaker 5: You don't have to go to Iceland. 792 00:39:23,200 --> 00:39:27,319 Speaker 12: Right anywhere you dig or drill, it's hot, and that 793 00:39:27,400 --> 00:39:33,239 Speaker 12: allows us to create high base load, affordable, reliable electricity 794 00:39:33,239 --> 00:39:36,320 Speaker 12: that is clean in states across the country. 795 00:39:38,719 --> 00:39:40,399 Speaker 3: You know, one thing that we haven't had a chance 796 00:39:40,440 --> 00:39:42,600 Speaker 3: to talk about with regard to the government's shutdown that 797 00:39:42,640 --> 00:39:45,440 Speaker 3: ties into what we are discussing with regard to energy 798 00:39:46,040 --> 00:39:49,560 Speaker 3: is heating oil assistance. In Massachusetts. It's getting to be 799 00:39:49,600 --> 00:39:52,279 Speaker 3: that season to fill the tank. Congressman, it already is 800 00:39:52,280 --> 00:39:55,600 Speaker 3: that season in Massachusetts. It's been in the thirties in 801 00:39:55,640 --> 00:39:58,080 Speaker 3: the morning recently. In our remaining moment, what will this 802 00:39:58,200 --> 00:39:59,879 Speaker 3: mean for assistance in your state? 803 00:40:01,760 --> 00:40:05,200 Speaker 12: The Low income Heating Assistance program is a mainstay for 804 00:40:05,280 --> 00:40:08,759 Speaker 12: Massachusetts families. We should expand the program, as I've consistently 805 00:40:08,800 --> 00:40:14,000 Speaker 12: advocated and ensure that families are able to keep homes 806 00:40:14,080 --> 00:40:16,240 Speaker 12: warm during a New England winter. 807 00:40:17,040 --> 00:40:18,680 Speaker 5: But again that's a short term issue. 808 00:40:18,719 --> 00:40:22,800 Speaker 12: In the long term, what we need is energy independence 809 00:40:23,040 --> 00:40:26,160 Speaker 12: that comes from adding more supply onto the grid. And Massachusetts, 810 00:40:26,160 --> 00:40:29,360 Speaker 12: our biggest problem is not transmission, it's generation. We need 811 00:40:29,960 --> 00:40:32,719 Speaker 12: next gen geothermal, we need nuclear, we need offshore win 812 00:40:32,840 --> 00:40:34,160 Speaker 12: we need hydro from Quebec. 813 00:40:34,360 --> 00:40:35,439 Speaker 5: We need all of it and more. 814 00:40:37,120 --> 00:40:38,720 Speaker 3: This is why he is on the Committee on Energy 815 00:40:38,719 --> 00:40:41,759 Speaker 3: and Commerce. Congressman Jake Auchincloss, thank you, sir for the time. 816 00:40:41,760 --> 00:40:44,280 Speaker 3: It's good to see you and we appreciate your insights 817 00:40:44,320 --> 00:40:48,040 Speaker 3: here on Bloomberg. Democrat from Massachusetts fourth Districts. Thanks for 818 00:40:48,080 --> 00:40:51,200 Speaker 3: listening to the Balance of Power podcast. 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