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Speaker 1: This Weekend Podcast with David Gura, Christina Raffini, and Elisa Matteo.
Speaker 2: Thanks for joining us for today's selection of conversations from
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Speaker 2: lifestyle and culture.
Speaker 4: This morning, Aron says the United States struck a desalination
Speaker 4: plant in the southern part of the country, leaving twenty
Speaker 4: villages without water. As Alexis mentioned, the intensification comes on
Speaker 4: the seventh night of attacks.
Speaker 5: Bridges and tunnels also targeted.
Speaker 2: Bloomberg White House correspondent Josh wein Grove is in New
Speaker 2: Jersey where the President is waking up this morning. Josh,
Speaker 2: where is the President's head on all this? What have
Speaker 2: you heard from White House officials? Is there a plan
Speaker 2: or is this the new normal for the foreseeable future?
Speaker 6: Well, they're keeping ambiguous. You know, there's some reporting that
Speaker 6: he's considering ramping up options axios, for instance, reporting that
Speaker 6: they've moved tankers air tankers back into the region to
Speaker 6: prepare for a potential escalation of bear strikes. So he
Speaker 6: seems to be keeping options on the table. But where
Speaker 6: we'll see that go, we don't know. As you know,
Speaker 6: we've always been on guard on weekends in particular, it
Speaker 6: seems like that's really when the American attacks seem to
Speaker 6: peek up. So you know, we'll see if we see
Speaker 6: something later today, it's too soon to say. I think,
Speaker 6: more broadly, as we've discussed before, the President sort of
Speaker 6: has been deemphasizing this in his remarks and kind of appears, frankly,
Speaker 6: you know, focus on other things right now. And we've
Speaker 6: seen this before of course with Ukraine as well. He's
Speaker 6: sort of got bored of talking about that and has
Speaker 6: has focused on other things. And so right now, we
Speaker 6: just continue to watching this day by day, and there's
Speaker 6: no kind of end in sight, and it's unclear when,
Speaker 6: if at all, talks may presume, or talks for talks
Speaker 6: may resume. We just start continuing to watch it bit
Speaker 6: by bit.
Speaker 7: I'm thinking about the talks.
Speaker 4: That's talking about the talks under the category of other
Speaker 4: things the President is watching or cares about. There is
Speaker 4: the run Darlene run matter, his embrace of Lindsay Graham's sister,
Speaker 4: now the interim senator from the state of South Carolina.
Speaker 4: The President and a post on truth social encouraging her
Speaker 4: to put her hat in the ring for the primary
Speaker 4: to get the seat permanently.
Speaker 5: What do you make of this?
Speaker 4: I confess I didn't know much about Lindsay Graham's sister
Speaker 4: before she was elevated to this position. But the President
Speaker 4: emphasizing his long relationship with her, his confidence in her.
Speaker 4: How is the President looking at her prospects and the
Speaker 4: importance of this race in particular.
Speaker 6: Josh President likes loyalty in senators, and in her speech
Speaker 6: when she became the senator, she talked about the importance
Speaker 6: of upholding his agenda. So if she's a trusted ally,
Speaker 6: perhaps not the surprise of the President, who is of
Speaker 6: course primaried or supported the primaries against a couple members
Speaker 6: of this current Senate conference, would value that. And so
Speaker 6: if he's with his endorsement, I think he is sort
Speaker 6: of taking a burden hand approach with taking backing her
Speaker 6: and his endorsements have, of course, been very influentially, if
Speaker 6: not decisive, across you know, basically every state over the
Speaker 6: course of this cycle. And I think that's important to
Speaker 6: remember it too, because you know, in other countries, maybe
Speaker 6: ones that are having trade tensions or whatnot, you're starting
Speaker 6: to see people talk look over the horizon, right, Oh, well,
Speaker 6: you know, Trump will be gone in two and a
Speaker 6: half years and weather the storm until then, and this
Speaker 6: and that, and maybe the Republican Party will shift. President
Speaker 6: Trump will continue to have a very very strong influence
Speaker 6: over the party, over its primaries, over the actions its
Speaker 6: leaders take, whether he's president or not, for quite some time.
Speaker 6: And so I think we're seeing that with this. And
Speaker 6: there's some reporting that other major candidates are now sort
Speaker 6: of considering or still considering, whether they will jump into
Speaker 6: the race, because running against the Trump endors candidate would
Speaker 6: be a significantly uphill battle.
Speaker 2: Josh, since you are our senior Canadian correspondent, I do
Speaker 2: want to go back.
Speaker 6: To sorry, sorry about them.
Speaker 7: Of course, of.
Speaker 5: Course you just did that.
Speaker 2: No, no, no, are you you know, even though I'm
Speaker 2: still upset that David went to Aspen without me, he
Speaker 2: did talk to James and grew there talking about.
Speaker 7: The trade policies.
Speaker 2: In the last hour, we were talking about kind of
Speaker 2: the incrementalism of having to negotiate one on one with
Speaker 2: all these countries the way they're trying to do this
Speaker 2: next round of tariffs. And the President is now threatening
Speaker 2: new tariffs on Canada because of the wildfires. He posted
Speaker 2: Canada has refused to engage in basic forge management and
Speaker 2: debris removal. Sounds familiar to what he said with California
Speaker 2: last year, knowing that such refusal will lead to exactly
Speaker 2: this result. This is willful negligence that's capitalized and becoming
Speaker 2: a yearly occurrence cost the United States billions of dollars.
Speaker 2: Which cost of this pollution must of necessity be added
Speaker 2: to the tariffs Canada is currently paying.
Speaker 5: Does a complicated clause by the way, Yes.
Speaker 7: That's not easy to read.
Speaker 2: That's my second time, and I did no better this
Speaker 2: second time.
Speaker 7: Josh, what is going on here?
Speaker 2: Does the President really need another foreign policy fight, especially
Speaker 2: one that could impact how much Americans pay for things,
Speaker 2: including cars and other items that come across the border.
Speaker 6: I mean the notion of Canada, you know, vacuuming the
Speaker 6: floor of its boreal forest or whatever. I mean obviously,
Speaker 6: like that's always that much you can do to take
Speaker 6: this seriously though, I mean a Canadian national died sighting
Speaker 6: a forest fire this month in Colorado. Is long standing
Speaker 6: cooperation between these two countries. In the those infamous California fires,
Speaker 6: it was Canadian water bombers. You saw some of the stuff.
Speaker 6: Trump says, it sort of goes off the back of
Speaker 6: Canada and Canadians other stuff they find particularly insulting. And
Speaker 6: I think this risks being in that second bucket because
Speaker 6: the country has been so much time helping America fight
Speaker 6: its forest fires that you know, the notion that this
Speaker 6: is sort of like their fault. No one wants to
Speaker 6: smoke over it. It's over Canada too, of course, is
Speaker 6: I think going to prompt and blowback. Frankly is already
Speaker 6: prompting blowback from Canadian officials. And so whether we see
Speaker 6: this factor into these negotiations or whatever is unclear. Just
Speaker 6: to remember where we are on this, much most of
Speaker 6: the trade between Canada and US right now is terror
Speaker 6: free because it's exempted under KUSMA, or as the Canadians
Speaker 6: call it in USMC after the Americans call it. And
Speaker 6: so Trump could adjust that exemption. That's a big fear
Speaker 6: of industries in the US and in Canada. He could
Speaker 6: raise the baseline tariff through these three oh one investigations,
Speaker 6: one of which is done, one of which is still
Speaker 6: in the hopper, or you could try to adjust the
Speaker 6: sectoral tariffs to crank up tariffs on autos or steel,
Speaker 6: which are the two ones that are biting the Canadian
Speaker 6: economy in particular. So he does have avenues here if
Speaker 6: he wants. But it's also true that Canada has one
Speaker 6: of the lowest effective terraf rates in the world right
Speaker 6: now when it comes to accessing the US market, and
Speaker 6: so if the price of that is looking the other
Speaker 6: way when the President gives upset every now and then,
Speaker 6: maybe that's.
Speaker 5: What the Cheenians are going to do. Kusma kusma is
Speaker 5: what they call it. Did use usmc A, I.
Speaker 6: Bet I bet he did. Yeah, I'm mad you did.
Speaker 6: But you made a lot of news in that interview,
Speaker 6: complicated my evenings.
Speaker 5: I'm sorry for that.
Speaker 7: We're all mad at him.
Speaker 2: Well, well, these Canadians and Americans are getting along well,
Speaker 2: and all right, our bitterness about your ospin trip.
Speaker 4: Thanks grow At the beginning of cool duty in New Jersey,
Speaker 4: Thank you very much for the time.
Speaker 2: All right, the announcement of a powerful new AI model
Speaker 2: from Chinese startup Moonshot Royal Markets.
Speaker 4: On Friday, Textok specifically semiconductors finished lower over concerns at
Speaker 4: the US maybe losing ground in the global AI race.
Speaker 2: Earlier today, we spoke with Bloomberg's Mike Shephard and mindm
Speaker 2: in Low about China's push to become the new AI leader.
Speaker 8: It's definitely an important priority for the Chinese government. In fact,
Speaker 8: they are grooming this entire AI sector as the next
Speaker 8: big export engine for China as the country transitions away
Speaker 8: from older industries like property, which is really in a
Speaker 8: big slum for several years now. So they're pouring a
Speaker 8: lot of investments to provide the patient capital to groom
Speaker 8: all these startups in this sector. And it's all part
Speaker 8: of the five year plan that China had laid out
Speaker 8: early this year, right in March at the two sessions.
Speaker 8: They have an AI plus plan where they want to
Speaker 8: encourage adoption of AI across all sectors of the economy
Speaker 8: over the next decade or so. And just to give
Speaker 8: you a sense of how important AI is, this World
Speaker 8: AI Conference in Shanghai is in the ninth edition. And
Speaker 8: I remember in the early years not many journalists would
Speaker 8: even bother attending, but now it's a completely different story.
Speaker 8: Even President c himself came to Town to graze the
Speaker 8: event personally, and this really represents an upgrade to the
Speaker 8: status of this event which in previous in the last
Speaker 8: two years, it was attended by Premier Lee Lee Town,
Speaker 8: who is the number two leader in China, and Presidency
Speaker 8: gave this big speech this year. A lot of it
Speaker 8: was of course also a veiled message to the US
Speaker 8: as well, because he talked about how when it comes
Speaker 8: to AI governance, the world needs to take a multi
Speaker 8: electoral approach. The world needs to learn from one another,
Speaker 8: and AI development shouldn't be a solo development of one country.
Speaker 8: And all over Chinese state media, you look at the
Speaker 8: Communist Party mouthpiece People's Daily, they have been publishing editorials
Speaker 8: about how tech and AI should not become a monopoly,
Speaker 8: it should really be treated as a global public good
Speaker 8: that is shared with the rest of the world. So
Speaker 8: again Presidency positioning himself as this leader of the global South,
Speaker 8: advocating for bridging the digital divide. So he announced a
Speaker 8: few key initiatives including offering at least five thousand training
Speaker 8: opportunities in AI for people in the developed countries and
Speaker 8: allowing them some thirty countries to tap into this AI
Speaker 8: powered meteorological system to safeguard their homes for example. So really,
Speaker 8: and also yes, a couple of days ago there were
Speaker 8: some twenty nine was signed up to be part of
Speaker 8: this China led group called the Wollai Cooperation Organization, and
Speaker 8: it's just yet another platform that could give China more
Speaker 8: sway in shaping global AI norms.
Speaker 7: Mike, how does this impact American companies?
Speaker 2: I mean, obviously they're already down the road with a
Speaker 2: lot of these investments. Is there they can't claw them
Speaker 2: back at this point, but they have to be looking
Speaker 2: at this and being very concerned.
Speaker 7: Is there a way for them to pivot?
Speaker 2: And then you also have the Trump administration starting to
Speaker 2: talk about having a new regulatory agency specifically for AA.
Speaker 2: Does that compound the difficulties American AI companies could now face.
Speaker 9: Well, take the second part first, there, Christina, because it's
Speaker 9: the latest and there was a scoop from last night
Speaker 9: from our team here in DC, and the companies actually
Speaker 9: would welcome some sort of a coherent approach to AI
Speaker 9: safety reviews, and at issue is, you know, they did
Speaker 9: not like the way that Anthropics fable five and with
Speaker 9: those five were essentially ordered off THET via export controls
Speaker 9: over concerns that the guardrails on.
Speaker 5: Them weren't adequate.
Speaker 9: And we saw the same sort of pressure put on
Speaker 9: Open AI. But the companies had felt that it was
Speaker 9: overboard and also kind of ad hoc in the approach,
Speaker 9: and they would like to see a more coherent framework.
Speaker 9: And what's taking shape is a Finroom like model, one
Speaker 9: that would resemble what the broker dealer industry on Wall
Speaker 9: Street face is that it's an industry funded and not
Speaker 9: industry run, but industry certainly has a lot of input
Speaker 9: to how the rules of the road are set, and
Speaker 9: in this case it would be the safety testing, and that.
Speaker 10: Would give them a little bit more of, I guess,
Speaker 10: a clear path forward when it comes to dealing with
Speaker 10: the government, how far they can take their models as
Speaker 10: they develop them. More broadly, though, the question of how
Speaker 10: companies are reading this moment, look, many of them are
Speaker 10: playing the long game, and all this week we heard
Speaker 10: from TSMC they were reporting, look, we are seeing demand
Speaker 10: for AI chips and ar hardware going through twenty thirty,
Speaker 10: it is going to be hard to meet. And that
Speaker 10: is a message that was echoed by sk Heinez during
Speaker 10: Ed Ludlow's interview with the CEO just last just a
Speaker 10: little more than a week ago, as they were making
Speaker 10: their public market debut here in the US. And then
Speaker 10: it's a message that's been reinforced by Nvidia Chief executive
Speaker 10: Officer Jensen Wong. They just see the demand from hyperscalers
Speaker 10: here in the US and even elsewhere as being off
Speaker 10: the charts. And Vidia also caught a bit of a break,
Speaker 10: and some of the other American companies caught a break
Speaker 10: too with the declassification of the United Arab Emirates, which
Speaker 10: is trying to establish itself as a real center of
Speaker 10: development for AI and they see that as a new
Speaker 10: market that they can break into and try to export
Speaker 10: the American tech stack. But really, do you see this
Speaker 10: contrasted vision so Xhijinping laying out something that is very
Speaker 10: multilateral and President Donald Trump arguing one that is very
Speaker 10: much America first, and it really doesn't have all the
Speaker 10: pieces together in the same way that you do see
Speaker 10: China putting on the table.
Speaker 6: Now.
Speaker 5: I'm just looking at that sell off you saw in video.
Speaker 4: Lose a lot of ground yesterday and Apple gaining a
Speaker 4: lot of ground. These two companies with huge market caps
Speaker 4: really vying for top spot there in the middle of
Speaker 4: are Yeah. Goodh Rning's coming up here, So we'll see
Speaker 4: what happens.
Speaker 5: Here in the weeks ahead.
Speaker 3: Stay with us for more on Bloomberg this weekend. Right
Speaker 3: after this, all right, A.
Speaker 2: Russia sanctions bill to honor the late Senator Lindsay Graham
Speaker 2: now has eighty four co sponsors. It was one of
Speaker 2: Graham's last efforts to find a compromise aimed at trying
Speaker 2: to help end the war in Ukraine, imposing more tariffs
Speaker 2: on injuries that buy Russian oil and gas, and widening
Speaker 2: those mandatory sanctions.
Speaker 5: President Trump appears to be on board with that legislation.
Speaker 2: Seriously, this is in honor of Lindsey.
Speaker 8: This was his thing.
Speaker 1: He wanted this more than any other thing, you know,
Speaker 1: you know how he fell, And there's a good chance
Speaker 1: that he gets done.
Speaker 4: I talked about this with US Trade Representative Jameison Greer
Speaker 4: at the ASK and Security Forum earlier this week.
Speaker 11: There are a lot of elements to this bill. There's
Speaker 11: a teriff element, there's a sanctions element, all of which
Speaker 11: are designed to give the President discretion to deploy pressure
Speaker 11: on Russia and those who are supporting Russia. So we've
Speaker 11: worked very constructively with the Senate on this. There are
Speaker 11: a lot of good things to be said about it.
Speaker 11: I just spoke with the President about it as well,
Speaker 11: so I think there's an openness there. I think we'll
Speaker 11: see within the next couple of days, you know, final
Speaker 11: views from the President on whether he wants to be supportive.
Speaker 11: I think that we have it in a pretty good place.
Speaker 11: I think it's meaningful that this is something that Senator
Speaker 11: Graham and I and Senator Blumenthal and others were working
Speaker 11: on up until his last days, and that's meaningful as well.
Speaker 4: It would give the present the latitude to impose tariff
Speaker 4: of up to one hundred percent, as I understand it,
Speaker 4: on the largest imports of Russian oil. Any indication from
Speaker 4: him if he's prepared to do that, should this be pasted.
Speaker 11: Well, I mean, I think you know, when I talk
Speaker 11: to the President about this kind of issue, he wants
Speaker 11: to be careful about the way he deploys this kind
Speaker 11: of leverage. Geopolitics are very fragile, and this is something
Speaker 11: whether it's a terrif action or sanctions action or anything,
Speaker 11: it's something that the present thinks about very carefully. He
Speaker 11: certainly talks to me, He talks to Secretary Best and
Speaker 11: Secretary Rubio, Secretary Lonik, he talks to everybody. He talks
Speaker 11: to people outside the government wants to He wants to
Speaker 11: hit the right spot of putting pressure on countries and
Speaker 11: putting pressure on Russia without creating more conflict or reducing
Speaker 11: the likelihood of a peace deal.
Speaker 4: The Section one twenty two tariff's set to expire in
Speaker 4: just a couple of days, really few days from now
Speaker 4: July twenty fourth, all but certain that the three one
Speaker 4: tariffs will in effect after that, or we looking at
Speaker 4: perhaps a lapse kind of in coverage.
Speaker 11: Is the Section three oh one investigations I'm doing, where
Speaker 11: we've proposed some tariffs, they're on their own track. We're
Speaker 11: moving quickly, deliberately because we want to resolve the unfair
Speaker 11: trading practices that we're targeting with these investigations. So we're
Speaker 11: going to do them as soon as we can to
Speaker 11: get at these practices. You know, whether they're you know
Speaker 11: day before, a day of day after. That's less important
Speaker 11: to us than making sure we're addressing these unfair trading
Speaker 11: practices and getting the leverage in place we need to resolve.
Speaker 4: Do you have a timetable for one, you're going to
Speaker 4: bring that report to the President when you might see
Speaker 4: them enacted?
Speaker 11: Well, well, we have a couple right, So we have
Speaker 11: a section three oh one on forced labor, targeting countries
Speaker 11: who don't ban the import of forced labor goods. We
Speaker 11: do in America, other countries don't. Some have a law,
Speaker 11: but they don't necessarily enforce it. So we already have
Speaker 11: our report out on that, and so we can take
Speaker 11: action I think fairly quickly on that within the next
Speaker 11: few weeks. We have another investigations targeting a more compact
Speaker 11: group of countries on structural xcess capacity. These are countries
Speaker 11: who have a typically have a big trade deficit with
Speaker 11: the world, or a big sorry big tree surplus with
Speaker 11: the world, or a big trade surplus with US. Or
Speaker 11: even if they don't, they may have practices that generate
Speaker 11: factories or production that are totally out of whack with
Speaker 11: global demand. So this is a quite intense project. I
Speaker 11: have dozens and dozens of attorneys and policy makers working
Speaker 11: on this to really examine all of these practices. So
Speaker 11: it takes a little longer time than doing this forced
Speaker 11: labor one, which is a little bit of a binary
Speaker 11: where you're looking at what do they have in place
Speaker 11: and are they enforcing it? This is more complex.
Speaker 4: Does that explain the delay entirely or how long it's
Speaker 4: taking or there's been reports that maybe China, that China
Speaker 4: issue is complicating it more than it is with the others.
Speaker 11: No, No, I don't think that's the case at all, right,
Speaker 11: I mean, China is included in this structural Excess Capacity
Speaker 11: Section three oh one. The reality is it's a more
Speaker 11: complex investigation and we have to make sure that we
Speaker 11: are hitting our milestones. We've received a lot of comments
Speaker 11: from the public. We have to analyze those, we have
Speaker 11: to incorporate them into any responsive action we might take.
Speaker 11: So we're trying to make sure that we're we're actually
Speaker 11: living up to the letter of the law and the
Speaker 11: spirit of the law. We want to make sure that
Speaker 11: we're targeting these these unfair trading practices that have led
Speaker 11: to frankly offshoring in the US and an inability to
Speaker 11: build new factories at times when you have other countries
Speaker 11: that are building factories or they're depressing demand in their
Speaker 11: own country. This is not how market economics are supposed
Speaker 11: to work. And it creates a situation where there's not
Speaker 11: enough incentive to build a new factory in America or
Speaker 11: to employ American workers because we have overcapacity elsewhere. So
Speaker 11: we want to make sure that that capacity is restrained, restricted,
Speaker 11: or that we mitigate it somehow in our own economy
Speaker 11: so we can have market incentives to build here and
Speaker 11: to make here.
Speaker 4: I want to ask you about rare earth's and I
Speaker 4: wonder how you would assess China's performance when it comes
Speaker 4: to rare earths And as we get close through October,
Speaker 4: do you anticipate that agreement will be renewed in due course?
Speaker 11: So China's compliance with the rare earth elements of our agreements,
Speaker 11: it's not perfect. I think everyone knows that. You can
Speaker 11: read that in the paper that being said, we are
Speaker 11: getting a flow of rare earth. We don't have factories
Speaker 11: shutting down because they don't have it. But again, we
Speaker 11: really want to be in a position where we were,
Speaker 11: you know, in twenty twenty four and twenty twenty three
Speaker 11: in President Trump's first term, where we had a regular
Speaker 11: flow of rare earths. We also know that the Chinese
Speaker 11: they use rare earth for economic coercion. They did it
Speaker 11: in twenty ten and twenty eleven, they're doing it now,
Speaker 11: so it's not necessarily surprising. But we're continuing to, you know,
Speaker 11: to have some flow and where we have gaps, where
Speaker 11: we have problems the sector of the treasury and I
Speaker 11: you know, we work with our counterpart in China to
Speaker 11: try to loosen that flow up. Sometimes we're more successful
Speaker 11: than others. One important thing is we're moving forward in
Speaker 11: the US on rare earth production. One of the things
Speaker 11: I'm doing on my trip out west here, I'm going
Speaker 11: to Utah to visit a facility where we've already they've
Speaker 11: discovered rare earths in the Utah Desert and they're refining
Speaker 11: them and further manufacturing them at a facility in Utah,
Speaker 11: which is a great development for US national and economic security.
Speaker 4: You've got rare earths, there's huge from receutical dependence as well,
Speaker 4: and I wonder how you're thinking about that, the way
Speaker 4: that you can kind of curb our reliance on Chinese
Speaker 4: pharmaceuticals and ingredients.
Speaker 11: Yeah, we think about this a lot. This is this
Speaker 11: is really critical because at the end of the day,
Speaker 11: if somehow you lose access to Chinese inputs, it can
Speaker 11: be a huge challenge for our own manufacturing base. And
Speaker 11: some people will say, well, what about India, Fine, but
Speaker 11: a lot of the inputs that India uses also come
Speaker 11: from China. One great thing that we're seeing as we
Speaker 11: try to encourage companies to reshore is we actually have
Speaker 11: commitments from seventeen pharmaceutical companies, most the largest and the
Speaker 11: most major pharmaceutical companies, not only to lower prices of
Speaker 11: medication here in the US, pharmaceutical prices have gone down
Speaker 11: by two point five percent, but they've also agreed to
Speaker 11: reshore here and to manufacture here. And so we have
Speaker 11: companies like Eli Lilly and Novardes and others actually pouring
Speaker 11: concrete and superstructures going up in new facilities in North
Speaker 11: Carolina and Indiana and southern California. So this actually, for me,
Speaker 11: has been a really bright spot of our efforts to
Speaker 11: reshort critical production in America.
Speaker 4: In the trade reps, glossary transhipments is a word. Yes,
Speaker 4: I'm wondering how you are thinking about monitoring and blocking
Speaker 4: transhipment when it comes to China.
Speaker 11: So it is a gloss it is a word in
Speaker 11: our glossary, but it can mean different things.
Speaker 6: Right.
Speaker 11: There's kind of like your pure illegal transhipment where something's
Speaker 11: made in China, they send it to Vietnam and they
Speaker 11: put a made in Vietnam sticker and send it over.
Speaker 11: It's just illegal, right, And that's on Customs and Border
Speaker 11: Protection to enforce that right, to do investigations, to identify
Speaker 11: areas of fraud and go after it. And we're doing that.
Speaker 11: A day or two ago we had a big announcement
Speaker 11: with DOJ teaming up with CPP. They've already found a
Speaker 11: billion dollars in customs fraud and some of that is transhipment.
Speaker 11: And then you have another issue where you have, you
Speaker 11: know country it's often Asian inputs, China, Vietnam. They go
Speaker 11: to a third country, maybe Mexico, and they do just
Speaker 11: enough work where they can legally say this is actually
Speaker 11: from Mexico, So maybe we should get a better terror
Speaker 11: fright than if it were from China. That's an issue,
Speaker 11: and that's a problem with Mexico right now. For example,
Speaker 11: and some of more discussions. We're talking about rules of
Speaker 11: origin and saying, if you want to get a better
Speaker 11: deal bringing something in from Mexico or name your country,
Speaker 11: you have to make sure it's actually has US content.
Speaker 11: You have to make sure it actually has Mexican content
Speaker 11: or whatever it is, and you have to have that
Speaker 11: as high as possible to protect against this other type
Speaker 11: of transhipment, which is a little more difficult to detect.
Speaker 4: There's a long way to go until this meeting in
Speaker 4: September when the Chinese president comes to the United States.
Speaker 4: But let me ask you lastly sort of how you're
Speaker 4: thinking about that. You were so integral to the conversations
Speaker 4: that took place in Beijing. What are you expecting deliverables
Speaker 4: wise to come out of that meeting in Washington in
Speaker 4: a couple months.
Speaker 11: Well, the number one deliverable we always have between President
Speaker 11: Trump and President she is to continue the stability of
Speaker 11: the relationship. Both of these leaders are very committed to
Speaker 11: having a strong and solid personal relationship. Now that doesn't
Speaker 11: mean we don't have issues in the broader relationship. Obviously
Speaker 11: we do. China is a big challenge for the US
Speaker 11: in a lot of ways, but we want to make
Speaker 11: sure we're delivering stability. There's never been a situation where
Speaker 11: the US side or even the Chinese side, has gone
Speaker 11: out and said everyone should expect a comprehensive agreement that
Speaker 11: resolves all issues. Like no one's ever promised that, so
Speaker 11: that's not what we expect. We will have an opportunity
Speaker 11: to take stock of Chinese commitments with respective purchases of
Speaker 11: soybeans and.
Speaker 7: Other agricultural products.
Speaker 11: Will take stock on the rare of issues we decided,
Speaker 11: so I think it'll be a moment for stock taking,
Speaker 11: you know, confirming the relationship, making sure that China is
Speaker 11: complying with what it's agreed to do. That's really what
Speaker 11: we're looking forward to.
Speaker 6: In this meeting.
Speaker 7: Stay with us for more on Bloomberg this weekend.
Speaker 4: Right after this, later today in Miami, England, we'll take
Speaker 4: on France in the World Cup bronze medal match, but
Speaker 4: throughout the tournament, the president of FIFA's ron scrutiny for
Speaker 4: his relationship with Preston Trump and potential rule bending for
Speaker 4: Team USA.
Speaker 2: We spoke with sports calmist Jonathan Wilson, the author of
Speaker 2: The Power and the Glory and New History of the
Speaker 2: World cup about Johnny Infantino's legacy and his impact on FIFA.
Speaker 12: Febry twenty sixteen, he takes over and he says, right,
Speaker 12: we're going to clean everything up. He ostentatiously flies on
Speaker 12: a budget carrier to his first fef for Congress. You'll
Speaker 12: have noted that to change.
Speaker 5: To the product.
Speaker 2: Yeah, that did last long, but.
Speaker 12: And he said, look, we've got far too many committees.
Speaker 12: We need to clear these out. It's massively inefficient. Then
Speaker 12: in twenty twenty four, a vote was taken to increase
Speaker 12: the number of standing committee's FIFA from seven to thirty five. Now,
Speaker 12: the reason this is significant is that if you are
Speaker 12: one of if you're a delegate representing one of the
Speaker 12: two hundred and eleven FIFA members you have, you will
Speaker 12: be appointed to various committees. Each committee brings with it
Speaker 12: a stipend and very generous twenty yes, and that's where
Speaker 12: the money goes. And of course if you're the delegate
Speaker 12: from Country X, this doesn't matter of people in Country
Speaker 12: X think oh, your thiefus is just great Infantino's and idiots,
Speaker 12: oh we've got to get rid of him. The ticket
Speaker 12: prices are too high. He just thinks I'm getting this
Speaker 12: lovely bunch of money, and why am I going to
Speaker 12: vot against president who brings up to me?
Speaker 7: This is very strategic explaining this committee.
Speaker 12: It's basic clentleism. I mean the other thing that the
Speaker 12: money does, and this is slightly more complex. There are
Speaker 12: two schemes, the Goal Project, which is introduced by Blatter
Speaker 12: in nineteen ninety eight, and the Forward Project, which is
Speaker 12: Infantino's great plan. And this redistributes money from FIFA two federvations.
Speaker 12: So for instance, say you're I don't know the FA
Speaker 12: of Gabon and you say, look we need a new
Speaker 12: national stadium and Dame is falling down. I actually be
Speaker 12: covering these Asidames quite nice, but just for sake of argument,
Speaker 12: Gabon and if you've got okay, we get you can't
Speaker 12: afford that, but it'd be useful if you had a
Speaker 12: nice new stadium. You can generate revenue through that. And
Speaker 12: so we'll give some of these great profits from from
Speaker 12: the World Cup. And the World Cup is by far.
Speaker 2: The biggest level of playing field kind of literally some places.
Speaker 2: But that seems like a nice mission.
Speaker 12: But of course none of these are properly audited, so
Speaker 12: there hasn't been a review since twenty sixteen, which is
Speaker 12: probably itself significant, But the review in twenty sixteen said
Speaker 12: eighty one percent of those two and eleven member nations
Speaker 12: are not properly audited, So so that money is going well,
Speaker 12: who knows, but I think we can guess.
Speaker 2: On that note, there's also in fifteen that has been
Speaker 2: catching a lot of flak for this thing that happened
Speaker 2: with the US player revoking the red card after.
Speaker 12: Well technically he didn't revoke the red card, he suspended
Speaker 12: the suspension, so the suspension was suspended for a year,
Speaker 12: exactly the same as he's done with Cristiano Ronaldo, who
Speaker 12: was sent off from the nultimate qualifier, so he was
Speaker 12: giving a three game ban for that he served one
Speaker 12: game in the final two games was suspended also three
Speaker 12: other players, basically to make it obvious, I don't know,
Speaker 12: to make it less obvious that Menaldo was getting dispensation
Speaker 12: because they want Manaldo at the World Cup. And I
Speaker 12: think you can say this follows from a situation with
Speaker 12: the Club World Cup last year where I don't know
Speaker 12: if you remember, but essentially two Mexican teams who qualified
Speaker 12: had the same owner. You can't have that one of
Speaker 12: them had to step down.
Speaker 2: Oh wow, Okay, so it should.
Speaker 12: Have meant the MLS champions got in, but instead it
Speaker 12: went to into Miami because that gets you messy in
Speaker 12: because they finished top of the regular season.
Speaker 2: It does seem to be a little waiting towards these
Speaker 2: more popular players.
Speaker 12: Is jerrymandering to get the most famous people involved. Now
Speaker 12: you might say the tennis tournament's golf tournaments do this
Speaker 12: kind of thing all the time with wild cards. Let's
Speaker 12: get somebody famous, somebody popular. It drives revenue. Where's the problem. Well,
Speaker 12: the problem is it's one thing to do it if
Speaker 12: your tournament has one hundred and twenty eight parties.
Speaker 7: Right, and there's a slot specifically for those Shenanigans.
Speaker 12: Yeah, yeah, it's it's quite another when there was a
Speaker 12: qualification process or if you're overriding a disciplinary process. So
Speaker 12: with Bunigan, that the fact that he could play against Belgium.
Speaker 12: He is the first player since Gavincia in nineteen sixty
Speaker 12: two to be sent off at the World Cup and
Speaker 12: not be suspended for the next game. And the reason
Speaker 12: that's so damaging it's not just that it sort of
Speaker 12: it feels unfair. It's that it casts into doubt the
Speaker 12: integrity of the entire petition. So if you are, for instance, Egypt,
Speaker 12: who are very uhappy with some of the refereeing in Argentina,
Speaker 12: and I think you can understand a couple of fifty
Speaker 12: fifty calls, key, fifty fifty calls went against them, and
Speaker 12: then I think we'll hang on. Is that just because
Speaker 12: we were a bit unlucky, or is that because there
Speaker 12: is someone directed from on high that Lionel Messius's famous
Speaker 12: because he generates revenue has to be kept in the tournament.
Speaker 2: This decision with the red card is quite controversial. You
Speaker 2: don't think that'll hurt him in the elections? Do you
Speaker 2: think he has enough committees and other friends that he
Speaker 2: will he will get to stay.
Speaker 12: There's already two hundred and two and eleven members have
Speaker 12: said they're back in, so it will be by acclamation.
Speaker 12: So I mean, I think it has damaged him, And
Speaker 12: I think there's there's two aspects of this world couple
Speaker 12: damaged him. So so firstly that I mean, I think
Speaker 12: they probably are good delegates who recognize this as a
Speaker 12: problem of integrity. There may even be quite cynical delegates
Speaker 12: who think, actually, if the integrity of the competitions undermined,
Speaker 12: is it going to carry on general revenies?
Speaker 1: It does?
Speaker 5: Is the world right?
Speaker 7: At some point?
Speaker 12: If the world loses faith, then you know, sport doesn't
Speaker 12: work without faivor but dramatic twists at the end. If
Speaker 12: you think that might have been scripted, well, then you're
Speaker 12: watching pay.
Speaker 2: Absurd ticket price, not real. So we had that sport
Speaker 2: here it's called wrestling. Yeah, totally different audience.
Speaker 12: Yeah, So that's one element of the other is I
Speaker 12: think to do with Infantina has made this big point
Speaker 12: of this is the most inclusive World Cup ever, which
Speaker 12: I'm afraid is clearly nonsense when even one of his
Speaker 12: own referees and our time from Somalia can't get into
Speaker 12: the country. Plus I mean, I think it depends on
Speaker 12: the individual country, but roughly eighty percent of applicants, applications
Speaker 12: by fans and journalists from Africa to come to the
Speaker 12: tournament were turned down by the US and by Canada.
Speaker 12: That is my definition not inclusive. And given in Pantino
Speaker 12: likes to portray himself as his champion of the global South,
Speaker 12: that is a position that's much harder to maintain. So
Speaker 12: I don't think it's going to have an immediate impact,
Speaker 12: but it has slightly weakened him. What it might mean
Speaker 12: is if you were planning to change Figus Constitution to
Speaker 12: understand again in twenty twenty seven, maybe he'll be a
Speaker 12: little more overlooked in to do lost time.
Speaker 7: Stay with us for more on Bloomberg this weekend right after.
Speaker 2: This, Welcome back to Bloomberg this weekend or b T dubs.
Speaker 2: I'm Christiner Finney with David Gera. Alexis is going to
Speaker 2: run us through some of the stories you might have
Speaker 2: mixed this week Now, Alexis, there is an ongoing debate
Speaker 2: on this show.
Speaker 7: I say BT.
Speaker 5: Dubs, I see BTW. What do you think I have
Speaker 5: to go? BT wh Welcome back anytime, Alexi.
Speaker 7: Okay, we agree to disagree.
Speaker 5: Why you go?
Speaker 7: It's okay.
Speaker 13: There's a little movie out this weekend.
Speaker 2: In case you yes, I accidentally stumbled on the premieres.
Speaker 2: I was going to a workout.
Speaker 5: The other day.
Speaker 2: They closed down all of Broadway, all of Lincoln Square,
Speaker 2: the whole thing was shut down for.
Speaker 13: 's Live in New York City Girl, two hundred and
Speaker 13: fifty million dollar budget. It's an epic to watch. It
Speaker 13: almost three hours long, so get your popcorn and get ready.
Speaker 13: The only movie ever short shot completely on Imax, and
Speaker 13: there's a lot, a lot of talk about it. It's
Speaker 13: doing pretty well here on Rotten Tomatoes. Already was out
Speaker 13: yesterday and the critics seem to like it. But people
Speaker 13: cannot stop talking about the fact that these actors, Matt
Speaker 13: Damon and Hathaway, Charlie's There on, you name it, are
Speaker 13: all having American accents in British accents, which we're used
Speaker 13: to for these big epicid Yes.
Speaker 7: Yeah, but that's not any more accurate. I do think
Speaker 7: it's weird.
Speaker 2: Like British TV a lot of times they'll have them
Speaker 2: playing Russians but they just have like a British accent,
Speaker 2: or they'll like me in France, but they just have
Speaker 2: a British accent. And somebody pointed out to me it's
Speaker 2: not even more accurate if they do a Russian accent.
Speaker 2: They're not speaking Russian. But for my brain, I want
Speaker 2: to hear the acts.
Speaker 13: If you want to be accurate, you'd speak ancient Greek. Yes,
Speaker 13: so you know what English is fine, but it's pretty funny.
Speaker 13: Tom Holland and Robert Pattinson, who are both in it,
Speaker 13: who are both British, have to put on American accent.
Speaker 13: Interesting and then calling you know, Odysseus my dad like
Speaker 13: American colloquialism.
Speaker 5: It is funny, father. Have you seen this yet?
Speaker 7: I haven't. I will go see.
Speaker 4: I'm sure you will. I've been very excited about it.
Speaker 4: You would to get a classicist on here and like
Speaker 4: do a deep dive.
Speaker 13: You're on, I have to go to see here. Matt
Speaker 13: Damon use his Boston ACX and he leans in on
Speaker 13: it on the dramatic scene. So we're going to be
Speaker 13: But Chris Nolan, who's the director, said it was a
Speaker 13: very intentional decision to have the actors speak in English
Speaker 13: and not have sort of a Stagy approach.
Speaker 4: And he is like the biggest proponent of these Imax movies.
Speaker 4: I mean he he loves an Imax film and I
Speaker 4: do like his movies generally.
Speaker 2: And they figured out a way, as we've talked about,
Speaker 2: to do the dialogue on Imax, which you usually don't
Speaker 2: usually shoot the big scenes on it, and it can
Speaker 2: only roll for I think seven.
Speaker 5: Minutes at a time.
Speaker 7: Yeah, that's what it is.
Speaker 2: Really arduous and I appreciate trying to do a school
Speaker 2: filmmaking in a world.
Speaker 13: Of digital cinematic feat And I'll report back on the
Speaker 13: accident horror turn and move to the Wall Street Journal.
Speaker 13: Wealthy older Americans, they are ripping up the traditional script
Speaker 13: and instead of down sizing, Oh, they are moving up
Speaker 13: big time. They are buying bigger homes, or they are
Speaker 13: adding additions to the homes. They are adding guesthouses for
Speaker 13: them kids, exactly, basically, and so empty nest boomers now
Speaker 13: own more than twenty eight percent of US homes with
Speaker 13: three or more bedrooms, which ding, ding, ding, one of
Speaker 13: the reasons why first time home buyers are having such
Speaker 13: a hard time getting into the market.
Speaker 5: Yeah, exactly, it is a good point.
Speaker 2: I will rent until I die. I've missed my vote. Yeah,
Speaker 2: I just there's no well, especially in New York, but
Speaker 2: even in DC. To your point, getting into the market
Speaker 2: was just getting harder and hard. That's every Yeah, that's
Speaker 2: so many people struggle. So just quick stats for you.
Speaker 13: They account Older Americans now account for forty two percent
Speaker 13: of the home buyers, the largest share of any generation.
Speaker 13: Why you ask, well, they bought their homes and their
Speaker 13: stocks decades ago, and those assets have appreciated. Yeah, sounds
Speaker 13: pretty nice if you can get pretty nice.
Speaker 7: Indeed, there to dream, there to dream birding?
Speaker 5: Do you look at the birds go by?
Speaker 2: Okay, speaking of older Americans, what happens to people when
Speaker 2: they hit a certain age?
Speaker 7: Both my parents have gotten into this.
Speaker 5: Young people, well, guess what.
Speaker 13: Birding is not just for your parents, It's not for
Speaker 13: your grandparents anymore. Oh no, No, birding has gone cool,
Speaker 13: so now the cool kids are doing it, becoming more
Speaker 13: popular among younger people in their twenties and thirties. Some
Speaker 13: of them were saying, hey, look, we're taking our binoculars
Speaker 13: with us on vacation because we want to go birding.
Speaker 13: They say the shift really started during the pandemic, when
Speaker 13: we were all stuck at home solitary activity. They were like, hey, wow,
Speaker 13: look at the birds. You sort of the equivalent of,
Speaker 13: you know, take a moment and smell the flowers. Huh,
Speaker 13: that's what we're doing. Where our birds? And also, the
Speaker 13: National Audubon Society had ten college chapters in twenty nineteen.
Speaker 13: You know how many they have today? No, one hundred
Speaker 13: and seventeen.
Speaker 7: That's hysterical, it's crazy. And Sam are you a birder
Speaker 7: in college.
Speaker 5: You can have a family of birders.
Speaker 9: You do.
Speaker 5: My sister's a professional ornithologist.
Speaker 6: Oh my what?
Speaker 4: And when my mom came to town shipping binoculars, who
Speaker 4: went to the Jamaica Bay Wildlife Reserved and looked for
Speaker 4: a bunch of preserve and looked for a bunch of
Speaker 4: birds living.
Speaker 5: I'm living it. But my sister studies the great raywel
Speaker 5: all right, well we.
Speaker 2: Have the show.
Speaker 7: I already like her better than.
Speaker 5: Exception, super impressed, super impressed with that.
Speaker 7: This is lovely and wholesome. I support this dren feel hearted.
Speaker 13: Let's do south by Southwest even has a whole like
Speaker 13: bird watching thing. So it's been I mean, it's happening
Speaker 13: amongst the young folks. All right, Finally a habit that's
Speaker 13: actually good for us. A new study found that people
Speaker 13: who drink coffee on a daily basis, both caffeated and decaffeinated,
Speaker 13: have a lower likelihood of developing liver ailments compared to
Speaker 13: non coffee drinkers.
Speaker 7: I'm gonna live forever, but this stat kind of scared me.
Speaker 13: Scientists at Cedars Sinai Health University found drinking five or
Speaker 13: more cups of coffee a day with a forty seven
Speaker 13: percent lower risk of developing liver cancer.
Speaker 4: Oh fine, wow, cos I drink a lot of coffee,
Speaker 4: mostly just out of habit like we walk by the
Speaker 4: machine and all pick them up.
Speaker 5: But I'm a real well.
Speaker 13: Because it's so at the ready here for us. Why
Speaker 13: why is this, though you might ask acquiring want to
Speaker 13: note due to chemical compounds and coffee that reduce inflammation, chlorogenic.
Speaker 5: Acid, chlorogenic acid.
Speaker 13: So I say, here's the chlorogenic having a tea today.
Speaker 5: But still there's.
Speaker 13: Oh I'm the only one with the fancy mug right now.
Speaker 2: But we put our water and people are wondering about
Speaker 2: the proliferation of cups.
Speaker 7: For our TV viewers, we have to have multi liquid.
Speaker 13: You have to stay hydrated.
Speaker 4: I do feel like there's always a study that says
Speaker 4: something's good about coffee or bad about coffee.
Speaker 2: And just like with wine, yes, why I only believe
Speaker 2: the studies that say wine and coffee are good to
Speaker 2: be clear and chocolate too, wine coffee.
Speaker 5: You're doing studies exactly.
Speaker 7: I like, I like to not fact check that at all.
Speaker 5: No need to Alexiri Stoppers, thank you very much, my
Speaker 5: pleasure debut here time.
Speaker 2: Doing bt W.
Speaker 7: We got new info out of David. We didn't know
Speaker 7: this well done profile.
Speaker 5: Will Okay got it on the show talk about birds. Seriously.
Speaker 2: Thanks for joining us on today's Bloomberg This Weekend podcast.
Speaker 2: Don't forget to tune in live for the show every
Speaker 2: Saturday and Sunday morning, starting at seven am Eastern.
Speaker 3: We're on Bloomberg Television Radio and the Bloomberg Business App,
Speaker 3: bringing you unique takes and in depth interviews on news, politics,
Speaker 3: lifestyle and culture.