1 00:00:00,080 --> 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 --> 00:00:17,119 Speaker 1: noon and five pm Eastern on Apple Coarckley and Android 4 00:00:17,160 --> 00:00:20,520 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 5 00:00:20,600 --> 00:00:25,040 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:25,320 --> 00:00:28,120 Speaker 2: Thank you for being with us a Friday edition of 7 00:00:28,200 --> 00:00:30,120 Speaker 2: Balance of Power. You made it to the threshold of 8 00:00:30,160 --> 00:00:32,040 Speaker 2: the weekend. We do have news from the White House. 9 00:00:32,080 --> 00:00:34,479 Speaker 2: As we walked you into the Oval Office at the 10 00:00:34,479 --> 00:00:36,920 Speaker 2: top of the hour. Here Boeing is the winner to 11 00:00:37,000 --> 00:00:40,720 Speaker 2: create the next the next generation fighter jet here in 12 00:00:40,760 --> 00:00:43,640 Speaker 2: the US beating out Lockheed. It's moving stocks and it's 13 00:00:43,720 --> 00:00:47,760 Speaker 2: part of the narrative today in Washington, DC. The Pentagon 14 00:00:48,080 --> 00:00:50,839 Speaker 2: is in our view, I guess for a number of reasons. 15 00:00:50,840 --> 00:00:53,159 Speaker 2: As you might have also heard the President and the 16 00:00:53,640 --> 00:00:56,080 Speaker 2: Secretary of Defense talking about Elon Musk and the story 17 00:00:56,080 --> 00:00:58,680 Speaker 2: today and the New York Times. They got everybody upset overnight. 18 00:00:59,240 --> 00:01:03,200 Speaker 2: Elon Musk brought to the Pentagon for a briefing this morning, knowing, 19 00:01:03,240 --> 00:01:06,120 Speaker 2: of course, he's one of the biggest and most important 20 00:01:06,120 --> 00:01:10,720 Speaker 2: defense contractors with space X. Knowing as well that he 21 00:01:10,840 --> 00:01:14,920 Speaker 2: is behind the Doge effort to bring some pretty heavy 22 00:01:15,000 --> 00:01:17,360 Speaker 2: duty cost cutting. At least he wants to see that. 23 00:01:17,400 --> 00:01:22,480 Speaker 2: To the Pentagon, the defense hawks don't, and as I said, 24 00:01:22,520 --> 00:01:25,360 Speaker 2: the blowback was something else. The New York Times says 25 00:01:25,400 --> 00:01:28,840 Speaker 2: Pentagon scheduled a brief Elon musk get this on the 26 00:01:29,000 --> 00:01:32,240 Speaker 2: US military's plan for any war that might break out 27 00:01:32,280 --> 00:01:35,720 Speaker 2: with China. The antennas went up at the White House. 28 00:01:36,720 --> 00:01:41,040 Speaker 2: Time says briefing includes twenty to thirty slides outlining how 29 00:01:41,040 --> 00:01:44,520 Speaker 2: the US military would fight China, the plan beginning with 30 00:01:44,600 --> 00:01:47,600 Speaker 2: the indications and warning of a threat from China, to 31 00:01:47,720 --> 00:01:51,080 Speaker 2: various options on what Chinese targets to hit, over what 32 00:01:51,240 --> 00:01:57,480 Speaker 2: time period, what would be presented to President Trump for 33 00:01:57,640 --> 00:02:01,320 Speaker 2: wartime decisions. Knowing as well that Elon does a lot 34 00:02:01,320 --> 00:02:06,720 Speaker 2: of business in China with Tesla. So the tentacles are 35 00:02:06,800 --> 00:02:10,160 Speaker 2: far and wide here in this story, and as I said, 36 00:02:10,400 --> 00:02:12,880 Speaker 2: the White House wasn't having any of it. This is 37 00:02:12,880 --> 00:02:16,400 Speaker 2: one hundred percent fake news. Chief Pentagon spokesman Sean Parnell. 38 00:02:17,040 --> 00:02:20,000 Speaker 2: How disgraceful it is. President Trump said that discredited media 39 00:02:20,080 --> 00:02:23,400 Speaker 2: can make up such lies. The fake news delivers. Again, 40 00:02:23,560 --> 00:02:27,080 Speaker 2: said Pete Hegseth, and the narrative just continued there in 41 00:02:27,080 --> 00:02:30,440 Speaker 2: the Oval office, the President saying they knew the story 42 00:02:30,520 --> 00:02:33,920 Speaker 2: wasn't true. Talking about the New York Times, nobody believed 43 00:02:33,919 --> 00:02:36,640 Speaker 2: that story. People want to explore. They laughed when they 44 00:02:36,639 --> 00:02:38,919 Speaker 2: heard the story. He said, nobody believed the Pentagon was 45 00:02:38,960 --> 00:02:42,840 Speaker 2: giving him a briefing on what war with China would 46 00:02:42,880 --> 00:02:45,840 Speaker 2: look like. And we could talk about a lot of 47 00:02:45,880 --> 00:02:48,240 Speaker 2: things involving Elon Musk. And that's where we start with 48 00:02:48,360 --> 00:02:52,720 Speaker 2: Lisa Camuso Miller, the former RNC communications director Republican strategist 49 00:02:52,800 --> 00:02:56,240 Speaker 2: with US right now on Bloomberg. Lisa, I missed you. 50 00:02:56,280 --> 00:02:58,760 Speaker 2: It's great to have you back. You're no stranger to 51 00:02:58,800 --> 00:03:04,760 Speaker 2: the Pentagon, the defense contracting business. Here. Does Elon Musk, 52 00:03:04,880 --> 00:03:08,480 Speaker 2: the CEO of SpaceX, the CEO of Tesla, and the 53 00:03:08,560 --> 00:03:12,200 Speaker 2: leader of the DOGE have business in that building? 54 00:03:14,280 --> 00:03:17,080 Speaker 3: Well, not if he doesn't have a security clearance and 55 00:03:17,120 --> 00:03:19,240 Speaker 3: not if he's not sentate confirmed. He ought not to. 56 00:03:19,480 --> 00:03:22,520 Speaker 3: But you know, Joe, it's really hard to know what 57 00:03:22,639 --> 00:03:25,000 Speaker 3: to believe right as it relates to this, But I 58 00:03:25,080 --> 00:03:27,520 Speaker 3: will say that let me tie the two stories together 59 00:03:27,639 --> 00:03:30,920 Speaker 3: for you. It was Elon Mutt that said that F 60 00:03:31,000 --> 00:03:34,320 Speaker 3: thirty five was a gigantic loss leader for the US government, 61 00:03:34,360 --> 00:03:37,720 Speaker 3: that over and over again we had overspent on technology 62 00:03:37,800 --> 00:03:41,600 Speaker 3: that was not delivered. And so today's news about Boeing 63 00:03:41,840 --> 00:03:46,120 Speaker 3: is to should be no surprise because Boeing overall is 64 00:03:46,200 --> 00:03:49,560 Speaker 3: the better choice for this delivery of this brand new 65 00:03:49,640 --> 00:03:54,640 Speaker 3: and very sophisticated product in en gat. 66 00:03:54,760 --> 00:03:55,200 Speaker 4: So this is. 67 00:03:55,280 --> 00:03:58,640 Speaker 3: Remarkable work, and remarkable in that it's not a surprise 68 00:03:59,000 --> 00:04:01,600 Speaker 3: because it was Donald Trump that's said in his original 69 00:04:01,800 --> 00:04:04,320 Speaker 3: his first administration that he was really impressed by the 70 00:04:04,360 --> 00:04:06,720 Speaker 3: F thirty five because of the technology and impressed by 71 00:04:06,800 --> 00:04:10,280 Speaker 3: all of the facets of what the F thirty five promised. 72 00:04:10,560 --> 00:04:13,360 Speaker 3: But the F thirty five has been a tremendous loss leader. 73 00:04:13,400 --> 00:04:15,680 Speaker 3: And so do I know what Elon Musk was talking 74 00:04:15,720 --> 00:04:17,839 Speaker 3: about with the Pentagon today? Now I have no idea, 75 00:04:17,880 --> 00:04:20,240 Speaker 3: And do I believe anybody's protest because it sounds like 76 00:04:20,240 --> 00:04:23,560 Speaker 3: everyone's protesting about it. I suspect that that probably caused 77 00:04:23,560 --> 00:04:25,960 Speaker 3: a big headache in the White House today, But I 78 00:04:26,000 --> 00:04:28,680 Speaker 3: also know that the president's very excited. It sounds like 79 00:04:28,680 --> 00:04:31,040 Speaker 3: he's so excited that he's calling it the F forty seven. 80 00:04:32,520 --> 00:04:34,279 Speaker 2: Yeah, what do you think about that. I guess they'll 81 00:04:34,279 --> 00:04:36,760 Speaker 2: call it the Trump Jet or something. It's the F 82 00:04:36,880 --> 00:04:41,719 Speaker 2: forty seven. The stocks are moving, you talk about Boeing's 83 00:04:42,040 --> 00:04:45,359 Speaker 2: it's back above one hundred and eighty. Here's five percent. 84 00:04:45,839 --> 00:04:48,440 Speaker 2: Lockheed's moving in the other direction. It's down over thirty 85 00:04:48,520 --> 00:04:51,120 Speaker 2: dollars a share, about seven percent. I just want to 86 00:04:51,120 --> 00:04:55,680 Speaker 2: make sure I understand because Elon Musk does not like 87 00:04:55,760 --> 00:04:58,240 Speaker 2: the F thirty five program. This went to Boeing, And 88 00:04:58,279 --> 00:05:00,440 Speaker 2: if that's the case, we've heard Donald Truy Trump make 89 00:05:00,480 --> 00:05:04,799 Speaker 2: fun of Boeing, criticize Boeing for months and months since 90 00:05:04,880 --> 00:05:09,000 Speaker 2: the door blowout in the jet, right up until recently 91 00:05:09,040 --> 00:05:12,599 Speaker 2: when Boeing had trouble getting the astronauts home, never mind 92 00:05:12,600 --> 00:05:16,400 Speaker 2: this whole flapover Air Force one. So does Elon make 93 00:05:16,440 --> 00:05:16,840 Speaker 2: the call? 94 00:05:18,480 --> 00:05:20,640 Speaker 3: Not sure that Elon makes the call, but I certainly 95 00:05:20,680 --> 00:05:23,240 Speaker 3: think that the fact that Doge and Elon Musk took 96 00:05:23,240 --> 00:05:25,640 Speaker 3: a look at the F thirty five and said that's 97 00:05:25,640 --> 00:05:27,359 Speaker 3: a product that we should take a look at, and 98 00:05:27,400 --> 00:05:30,000 Speaker 3: we should look for something that's more sophisticated and perhaps 99 00:05:30,040 --> 00:05:32,720 Speaker 3: one that could be delivered closer to hunt time. I 100 00:05:32,720 --> 00:05:35,000 Speaker 3: do think it had some impact in the final decision. 101 00:05:35,000 --> 00:05:38,920 Speaker 3: And look, the president, he doesn't pick winners and losers 102 00:05:38,960 --> 00:05:42,960 Speaker 3: in that he he picks on everybody, the president. And 103 00:05:43,000 --> 00:05:46,000 Speaker 3: so the fact that Boeing was the recipient of some criticism, 104 00:05:46,560 --> 00:05:48,400 Speaker 3: so has every other US company. 105 00:05:49,760 --> 00:05:52,960 Speaker 2: So don't read into it. What do you make of 106 00:05:53,000 --> 00:05:55,560 Speaker 2: the Tesla vandalism. I don't mean to bob around too 107 00:05:55,640 --> 00:05:57,279 Speaker 2: much on you here, but I feel like there's a 108 00:05:57,279 --> 00:06:00,000 Speaker 2: big connection with the outrage over him at the Pentagon 109 00:06:00,120 --> 00:06:03,279 Speaker 2: on today to this video. Do you see the video 110 00:06:03,279 --> 00:06:06,440 Speaker 2: of these Tesla's on fire in Las Vegas. Physical attacks 111 00:06:06,800 --> 00:06:09,680 Speaker 2: on Tesla cars and dealerships are going up. We're seeing 112 00:06:10,040 --> 00:06:14,760 Speaker 2: molotov cocktails thrown at cars. You've got the Tim Wallas, 113 00:06:14,800 --> 00:06:18,120 Speaker 2: the governor of Minnesota, who was of course the Democratic 114 00:06:18,200 --> 00:06:21,960 Speaker 2: running mate, telling people to is celebrating the stock going down, 115 00:06:22,000 --> 00:06:26,480 Speaker 2: telling to remove the Tesla logos from their cars. Have 116 00:06:26,520 --> 00:06:27,680 Speaker 2: you ever seen anything like this? 117 00:06:29,640 --> 00:06:30,560 Speaker 5: I mean, I've. 118 00:06:30,400 --> 00:06:33,640 Speaker 3: Never seen anything like any of what we've seen over 119 00:06:33,640 --> 00:06:36,400 Speaker 3: the course of the last two months, Joe. But do 120 00:06:36,520 --> 00:06:38,760 Speaker 3: I think that it's real? I mean, it was Elon 121 00:06:38,880 --> 00:06:41,919 Speaker 3: Musk who was saying on podcasts before the election was 122 00:06:41,960 --> 00:06:45,000 Speaker 3: decided that if Donald Trump wasn't elected, that he was 123 00:06:45,040 --> 00:06:48,279 Speaker 3: done for. What I don't think he expected was that 124 00:06:48,360 --> 00:06:50,440 Speaker 3: this kind of backlash would be coming for him. 125 00:06:50,600 --> 00:06:54,320 Speaker 2: Yeah, that's a really interesting point. Of course, we didn't 126 00:06:54,360 --> 00:06:55,960 Speaker 2: have a sense of what the Doge was even going 127 00:06:56,040 --> 00:06:58,120 Speaker 2: to be at that point, and that that's really what 128 00:06:58,240 --> 00:07:01,240 Speaker 2: has people upset here. Correct can talk about the salutes 129 00:07:01,279 --> 00:07:04,320 Speaker 2: and all the weird stuff from the chainsaw, but it's 130 00:07:04,360 --> 00:07:07,320 Speaker 2: the Doge cuts it. It's the way that employees have 131 00:07:07,400 --> 00:07:12,360 Speaker 2: been fired that have changed sentiment here, right without question. 132 00:07:12,560 --> 00:07:14,640 Speaker 3: And you know, Joe, the other thing too, is that 133 00:07:14,720 --> 00:07:19,880 Speaker 3: it's it's a contrast between two narratives, narratives that that 134 00:07:19,880 --> 00:07:23,240 Speaker 3: that imply that we are trying to get back to 135 00:07:23,480 --> 00:07:27,600 Speaker 3: a more lean and smart and efficient government, when in 136 00:07:27,680 --> 00:07:31,360 Speaker 3: the same breath we're hearing about awards being given to 137 00:07:31,520 --> 00:07:35,440 Speaker 3: Elon Musk for more work, right, so taking money out 138 00:07:35,480 --> 00:07:39,160 Speaker 3: of the pockets of Americans federal workers, putting them out 139 00:07:39,200 --> 00:07:42,640 Speaker 3: on the street, and putting more resources into the pocket 140 00:07:42,680 --> 00:07:45,960 Speaker 3: of a guy who's not even Senate confirmed or an 141 00:07:46,000 --> 00:07:50,160 Speaker 3: actual you know, government employee himself. So there's so much 142 00:07:50,200 --> 00:07:52,400 Speaker 3: contrasts here that, Yeah, do I think that it's his 143 00:07:52,520 --> 00:07:55,600 Speaker 3: brand that's going to take the greatest hit. Seems it 144 00:07:55,600 --> 00:07:58,880 Speaker 3: seems like the most easy opportunity for the American people 145 00:07:58,920 --> 00:08:01,000 Speaker 3: to speak up and out or how unhappy they are 146 00:08:01,040 --> 00:08:02,840 Speaker 3: with Elon Musk and control in the government. 147 00:08:03,800 --> 00:08:06,320 Speaker 2: That's a pretty brutal world if you're somebody working at 148 00:08:06,320 --> 00:08:08,680 Speaker 2: Tesla and you know, putting your life's work into designing 149 00:08:08,720 --> 00:08:11,800 Speaker 2: these cars, which are pretty cool if you remove the 150 00:08:11,800 --> 00:08:14,400 Speaker 2: politics from the whole equation here. You know, we've seen 151 00:08:14,440 --> 00:08:17,080 Speaker 2: polls like this, and I know that you've been in 152 00:08:17,120 --> 00:08:19,960 Speaker 2: this business long enough as well, Lisa, where you see 153 00:08:20,000 --> 00:08:24,440 Speaker 2: politics layered over branding and say, okay, liberals prefer Pacifico beer, 154 00:08:25,000 --> 00:08:29,560 Speaker 2: Conservatives like Miller Lite. Neither of them are drinking whatever this. 155 00:08:29,680 --> 00:08:33,679 Speaker 2: But we actually project our politics often on our brand decisions, 156 00:08:34,200 --> 00:08:36,440 Speaker 2: not in a hyper partisan way. This is the most 157 00:08:36,480 --> 00:08:39,480 Speaker 2: extreme form of this we've ever seen. What does it 158 00:08:39,520 --> 00:08:42,520 Speaker 2: tell us about the state we are in the country here? 159 00:08:42,559 --> 00:08:45,400 Speaker 2: And will there be like a liberal version of Tesla 160 00:08:46,160 --> 00:08:50,920 Speaker 2: that is the blue alternative for electric cars. 161 00:08:51,280 --> 00:08:55,160 Speaker 3: Perhaps there's also been a backlash against electric cars from 162 00:08:55,200 --> 00:08:59,240 Speaker 3: the administration right. There's been this pullback on whether or 163 00:08:59,320 --> 00:09:02,880 Speaker 3: not people and car owners would get the benefit of 164 00:09:02,960 --> 00:09:05,480 Speaker 3: the you know, the tax break that they would get 165 00:09:05,480 --> 00:09:08,680 Speaker 3: for buying an electric car. But Elon didn't care because 166 00:09:08,679 --> 00:09:11,119 Speaker 3: it wasn't going to affect him in his own calculation, 167 00:09:11,160 --> 00:09:13,280 Speaker 3: at least from the news reports that I've read. So 168 00:09:13,440 --> 00:09:16,559 Speaker 3: but Joe, there are apps and there are resources all 169 00:09:16,600 --> 00:09:19,000 Speaker 3: across the country now that give people a sense of 170 00:09:19,040 --> 00:09:22,000 Speaker 3: where they should be spending their dollars, because spending their 171 00:09:22,040 --> 00:09:25,600 Speaker 3: dollars can in fact, let not the government, but let 172 00:09:25,640 --> 00:09:28,760 Speaker 3: the private sector know how they feel about the policies 173 00:09:28,800 --> 00:09:31,640 Speaker 3: that they stand for. I've certainly seen people make decisions 174 00:09:31,720 --> 00:09:35,480 Speaker 3: about their prime memberships with Amazon and their decisions about 175 00:09:35,520 --> 00:09:39,040 Speaker 3: where to shop. So there is a lot of American 176 00:09:39,120 --> 00:09:43,440 Speaker 3: dollars in the in the consumer space that are being 177 00:09:43,440 --> 00:09:46,120 Speaker 3: spent more smartly and spent more wisely in a way 178 00:09:46,120 --> 00:09:50,000 Speaker 3: that they're demonstrating their political voice not just at the polls, 179 00:09:50,040 --> 00:09:53,800 Speaker 3: but in the in the regular, everyday shopping behaviors of 180 00:09:53,840 --> 00:09:54,600 Speaker 3: the American people. 181 00:09:55,640 --> 00:09:58,040 Speaker 2: These are some stark images you guys are showing on 182 00:09:58,080 --> 00:10:01,839 Speaker 2: YouTube here. This is from c the aftermath of these 183 00:10:02,400 --> 00:10:05,320 Speaker 2: tesla's being burned up. I don't know where you go 184 00:10:05,400 --> 00:10:08,839 Speaker 2: from here. Just in our final moment, Lisa Camuso Miller 185 00:10:08,840 --> 00:10:11,480 Speaker 2: we're going to end up having corporations have to hire 186 00:10:11,520 --> 00:10:14,400 Speaker 2: political strategist, Like you don't know how to advertise then, right. 187 00:10:15,559 --> 00:10:18,479 Speaker 3: Well, yeah, in the advertising, also how they position themselves 188 00:10:18,520 --> 00:10:20,720 Speaker 3: in their messaging and the words that they use as 189 00:10:20,760 --> 00:10:23,640 Speaker 3: they as they demonstrate how they feel about particular issues. 190 00:10:23,840 --> 00:10:26,360 Speaker 3: It's for the first time that I can remember in 191 00:10:26,720 --> 00:10:29,920 Speaker 3: the near term that every single word that comes out 192 00:10:29,960 --> 00:10:33,199 Speaker 3: of the out of the mouth, whether it's advertising, press statements, 193 00:10:33,240 --> 00:10:35,800 Speaker 3: or otherwise, have got to go through a very specific 194 00:10:35,880 --> 00:10:38,000 Speaker 3: filter to make sure that there isn't a backlash and 195 00:10:38,000 --> 00:10:41,240 Speaker 3: to make sure that isn't affecting the consumer behavior as 196 00:10:41,280 --> 00:10:43,000 Speaker 3: it relates to brands in the United States. 197 00:10:43,960 --> 00:10:46,439 Speaker 2: All right, let me know when the first major retailer 198 00:10:46,480 --> 00:10:49,320 Speaker 2: reaches you to have this conversation, because I think this 199 00:10:49,440 --> 00:10:51,319 Speaker 2: is kind of a big deal. Lisa, great to see you, 200 00:10:51,679 --> 00:10:53,840 Speaker 2: have a great weekend, of course, and come see as soon. 201 00:10:54,040 --> 00:10:56,080 Speaker 2: Typically on our panel, but we thought we'd take a 202 00:10:56,080 --> 00:10:58,920 Speaker 2: deep dive and pick the brain of Lisa Camuso Miller, 203 00:10:58,960 --> 00:11:02,400 Speaker 2: former RNC comm Director, republican strategist, and will assemble our 204 00:11:02,400 --> 00:11:05,400 Speaker 2: panel next. They're back together today. Rick and Jeanie are 205 00:11:05,440 --> 00:11:07,160 Speaker 2: on the way right here on Bloomberg. 206 00:11:09,360 --> 00:11:12,840 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 207 00:11:12,920 --> 00:11:15,960 Speaker 1: us live weekdays at noon and five pm Eastern on 208 00:11:16,080 --> 00:11:19,320 Speaker 1: Apple Cocklay and Android Auto with the Bloomberg Business app. 209 00:11:19,360 --> 00:11:22,400 Speaker 1: You can also listen live on Amazon Alexa from our 210 00:11:22,400 --> 00:11:28,559 Speaker 1: flagship New York station. Just say Alexa play Bloomberg eleven thirty. 211 00:11:28,440 --> 00:11:30,719 Speaker 2: Here on Bloomberg Radio on the satellite you know We're 212 00:11:30,720 --> 00:11:34,640 Speaker 2: always there on XM Satellite Radio Channel one twenty one. 213 00:11:34,760 --> 00:11:37,280 Speaker 2: Runs right through the day, kind of like our YouTube 214 00:11:37,360 --> 00:11:41,440 Speaker 2: feed starts early in the morning with Tom Keene straight 215 00:11:41,480 --> 00:11:43,440 Speaker 2: through the late edition of Balance of Power. Get on 216 00:11:43,480 --> 00:11:46,160 Speaker 2: YouTube search Bloomberg Business News Live. This is the best 217 00:11:46,160 --> 00:11:49,040 Speaker 2: pro tip I have for you on this Friday. Okay, 218 00:11:49,720 --> 00:11:52,080 Speaker 2: you get the live feed, you get the radio show, 219 00:11:53,280 --> 00:11:56,000 Speaker 2: you get the video. Here in the studio, we'll keep 220 00:11:56,000 --> 00:11:58,800 Speaker 2: you posted on everything while we have it. This is 221 00:11:58,840 --> 00:12:03,920 Speaker 2: one hundred percent news, according to the chief Pentagon spokesman, 222 00:12:03,960 --> 00:12:08,959 Speaker 2: Sean Parnell. The Defense Secretary says, the fake news delivers again. 223 00:12:10,840 --> 00:12:15,559 Speaker 2: Donald Trump, China will not even be mentioned or discussed. 224 00:12:15,600 --> 00:12:19,720 Speaker 2: How disgraceful that the discredited media can make up such lies. 225 00:12:22,000 --> 00:12:24,959 Speaker 2: Echoed again there in the Oval Office, they're all talking 226 00:12:25,000 --> 00:12:28,120 Speaker 2: about Elon Musk, and boy, the New York Times started 227 00:12:28,120 --> 00:12:31,720 Speaker 2: a fire with this story last night. At the head 228 00:12:31,760 --> 00:12:34,439 Speaker 2: of the doge, if we can call him that, and well, 229 00:12:34,480 --> 00:12:37,440 Speaker 2: as it turns out, the head of pretty important defense 230 00:12:37,480 --> 00:12:42,440 Speaker 2: contractor named SpaceX incidentally also runs Tesla, had a special 231 00:12:42,440 --> 00:12:45,160 Speaker 2: appointment this morning at the Pentagon to be briefed on 232 00:12:45,320 --> 00:12:49,480 Speaker 2: China war plans. This is what The New York Times wrote. 233 00:12:49,720 --> 00:12:51,760 Speaker 2: This is when things started to get chippy at the 234 00:12:51,760 --> 00:12:55,000 Speaker 2: White House. Everybody starts kicking out denials and fake news statements. 235 00:12:55,679 --> 00:12:58,800 Speaker 2: Time said the briefing includes slides outlining how the US 236 00:12:58,920 --> 00:13:04,839 Speaker 2: military would fight the options presented to President Trump. He 237 00:13:04,880 --> 00:13:07,360 Speaker 2: actually went to the Pentagon this morning. He was there, 238 00:13:09,160 --> 00:13:12,400 Speaker 2: they claim, However, he was not briefed on China. But 239 00:13:12,440 --> 00:13:14,959 Speaker 2: it's raising a lot of new questions about Elon Musk. 240 00:13:15,280 --> 00:13:18,760 Speaker 2: Politico this morning out with the column We've reached peak Elon. 241 00:13:19,600 --> 00:13:23,560 Speaker 2: I kind of doubt it, but Democratic calls for his 242 00:13:23,880 --> 00:13:26,959 Speaker 2: confirmation in the Senate are starting to grow louder again 243 00:13:27,000 --> 00:13:30,480 Speaker 2: as people wonder exactly how much information he should be 244 00:13:30,520 --> 00:13:32,640 Speaker 2: exposed to and how many decisions when it comes to 245 00:13:32,679 --> 00:13:36,440 Speaker 2: procurement at the Pentagon he should be able to make 246 00:13:37,320 --> 00:13:39,480 Speaker 2: by the way we know, as we just discussed with 247 00:13:39,559 --> 00:13:41,760 Speaker 2: Lisa Camuso Miller, he was not a fan of the 248 00:13:41,800 --> 00:13:45,200 Speaker 2: F thirty five project, called it a lost leader, Lockheed Martin. 249 00:13:45,280 --> 00:13:48,520 Speaker 2: Look at that stock today because Lockheed was not selected 250 00:13:48,559 --> 00:13:53,160 Speaker 2: to build the new fighter jet, the next generation fighter, 251 00:13:53,280 --> 00:13:58,800 Speaker 2: the F forty seven. Boeing shares right now up five percent, 252 00:13:59,000 --> 00:14:02,840 Speaker 2: Lockheed down seven. And as we assemble our signature panel, 253 00:14:03,559 --> 00:14:05,400 Speaker 2: you know it's Friday when Rick and Jeanie you are 254 00:14:05,440 --> 00:14:08,160 Speaker 2: back together. Rick Davis, partner at Stone Court Capital or 255 00:14:08,200 --> 00:14:12,480 Speaker 2: Republican strategist and Jeanie Shanzino or Democratic analyst, senior democracy 256 00:14:12,480 --> 00:14:14,880 Speaker 2: fellow with the Center for the Study of the Presidency 257 00:14:14,920 --> 00:14:19,880 Speaker 2: in Congress. Rick, you're no stranger to the defense industry 258 00:14:20,000 --> 00:14:23,040 Speaker 2: and the conversation that we're having here. This is, of 259 00:14:23,040 --> 00:14:25,880 Speaker 2: course a project that a lot of defense hawks thought 260 00:14:25,920 --> 00:14:28,200 Speaker 2: we were behind on getting a next generation fighter to 261 00:14:28,320 --> 00:14:31,040 Speaker 2: keep up with or at least move beyond China. What 262 00:14:31,080 --> 00:14:33,240 Speaker 2: do you make of the announcement today in the backdrop 263 00:14:33,240 --> 00:14:35,960 Speaker 2: of Elon Musk, Yeah, I. 264 00:14:35,920 --> 00:14:39,480 Speaker 4: Think the announcement was highly anticipated. This current has been 265 00:14:39,520 --> 00:14:41,760 Speaker 4: going on for a couple of years. So folks who 266 00:14:41,760 --> 00:14:44,480 Speaker 4: follow these kinds of developments have been kind of hot 267 00:14:44,480 --> 00:14:47,600 Speaker 4: in anticipation seeing what comes out of this. And there's 268 00:14:47,640 --> 00:14:50,960 Speaker 4: been a general sensibility, at least amongst the people I've 269 00:14:51,000 --> 00:14:54,480 Speaker 4: spoken to, that Boeing was definitely in the front runner 270 00:14:54,600 --> 00:14:57,560 Speaker 4: seat on all this. But of course then you get 271 00:14:57,600 --> 00:15:01,400 Speaker 4: all the atmospherics and I don't know who's running Doge 272 00:15:01,480 --> 00:15:04,680 Speaker 4: pr actually had to get Stephen Miller's life in the 273 00:15:04,680 --> 00:15:08,280 Speaker 4: White House. But what a day to not want to 274 00:15:08,280 --> 00:15:10,440 Speaker 4: go to the Pentagon. I mean, like, his number one 275 00:15:10,560 --> 00:15:15,480 Speaker 4: competitor in the space business in the Pentagon is Lockey. 276 00:15:15,760 --> 00:15:19,560 Speaker 4: I mean SpaceX and Lockheed are direct competitors. And he 277 00:15:19,640 --> 00:15:22,680 Speaker 4: decides to go to the Pentagon the morning Lockheed is 278 00:15:22,720 --> 00:15:26,240 Speaker 4: going to get beat for this twenty billion dollar contract. 279 00:15:26,280 --> 00:15:28,560 Speaker 4: I mean, like, who does that? Who says that's a 280 00:15:28,560 --> 00:15:30,240 Speaker 4: good idea? 281 00:15:30,440 --> 00:15:30,640 Speaker 5: You know? 282 00:15:30,680 --> 00:15:33,960 Speaker 4: Look, I mean president can have anybody he wants briefed 283 00:15:34,000 --> 00:15:36,160 Speaker 4: on any topic he wants. It has nothing to do 284 00:15:36,240 --> 00:15:39,080 Speaker 4: with security, clernces, has nothing to do with propriety. That's 285 00:15:39,080 --> 00:15:43,040 Speaker 4: a presidential option he can exert any time he wants, 286 00:15:43,080 --> 00:15:45,120 Speaker 4: and he gets advice from whoever he asks for it. 287 00:15:45,680 --> 00:15:49,120 Speaker 4: And that's the way it should be. But like, really today, 288 00:15:49,280 --> 00:15:52,280 Speaker 4: the day the Oval Office has a defenser, care to 289 00:15:52,320 --> 00:15:55,080 Speaker 4: come in and announce that you just had your top 290 00:15:55,120 --> 00:15:57,680 Speaker 4: competitor beat and their stock goes through the bottom. 291 00:15:57,880 --> 00:16:03,680 Speaker 2: I mean, it's just nuts. Wow. Rick Davis puts it together. Genie, 292 00:16:03,720 --> 00:16:06,400 Speaker 2: I don't even have to ask you a question. What 293 00:16:06,440 --> 00:16:06,960 Speaker 2: do you think? 294 00:16:09,000 --> 00:16:13,680 Speaker 6: Well, you know, I think it was exactly what Elon 295 00:16:13,800 --> 00:16:16,440 Speaker 6: Musk wanted, And I think what got away from him 296 00:16:16,520 --> 00:16:18,560 Speaker 6: was the report by the New York Times last night, 297 00:16:18,920 --> 00:16:21,440 Speaker 6: because the report was very clear he was going there. 298 00:16:21,480 --> 00:16:23,040 Speaker 6: He was going to go in the tank, he was 299 00:16:23,080 --> 00:16:27,760 Speaker 6: going to get that information on China and our war plans. 300 00:16:28,120 --> 00:16:32,640 Speaker 6: And the President was obviously so angry last night when 301 00:16:32,680 --> 00:16:35,800 Speaker 6: he wrote that truth, denying it, and after that the 302 00:16:35,960 --> 00:16:38,480 Speaker 6: meeting in the tank was scrapped, but he still went 303 00:16:38,520 --> 00:16:41,000 Speaker 6: to the Pentagon. So I think that this is exactly 304 00:16:41,080 --> 00:16:44,160 Speaker 6: the point and exactly what he wanted. But what I 305 00:16:44,320 --> 00:16:47,200 Speaker 6: did think was telling about what the President said in 306 00:16:47,240 --> 00:16:52,720 Speaker 6: the Oval Office today was he was very very clear 307 00:16:52,920 --> 00:16:57,320 Speaker 6: when he said Elon Musk should not have access to 308 00:16:57,400 --> 00:17:00,880 Speaker 6: this kind of information. And by my that maybe the 309 00:17:00,920 --> 00:17:04,119 Speaker 6: first time we have heard Donald Trump maybe a little 310 00:17:04,160 --> 00:17:07,119 Speaker 6: bit walk away from Elon Musk and say he should 311 00:17:07,200 --> 00:17:11,040 Speaker 6: not have access to information. Now, whether he believes that 312 00:17:11,200 --> 00:17:14,280 Speaker 6: or not, it's another question, but he said it. And 313 00:17:14,400 --> 00:17:17,080 Speaker 6: so those words I think are words we should pay 314 00:17:17,119 --> 00:17:19,760 Speaker 6: attention to because it suggests that maybe he's reading the 315 00:17:19,760 --> 00:17:23,199 Speaker 6: same polls we are, that Elon Musk may be a 316 00:17:23,320 --> 00:17:27,440 Speaker 6: drain on him and his administration being this much outfront. 317 00:17:29,160 --> 00:17:32,520 Speaker 2: Well, it's interesting he's going back to a familiar playbook 318 00:17:32,560 --> 00:17:35,560 Speaker 2: here from the campaign. Rick, it's all Elon all the 319 00:17:35,560 --> 00:17:38,600 Speaker 2: time today apparently as we walk up on a very 320 00:17:38,640 --> 00:17:40,800 Speaker 2: important elections, kind of the first it's going to get 321 00:17:40,840 --> 00:17:42,800 Speaker 2: a lot of talk. Next week, we'll lay down a 322 00:17:42,840 --> 00:17:45,080 Speaker 2: marker on this right now. Think of it as kind 323 00:17:45,080 --> 00:17:48,359 Speaker 2: of the first test voter or example of an election 324 00:17:48,760 --> 00:17:52,600 Speaker 2: since November here, and it's a Wisconsin Supreme Court election 325 00:17:52,680 --> 00:17:56,159 Speaker 2: that we're talking about. Elon Musk the super pack that 326 00:17:56,640 --> 00:18:00,399 Speaker 2: he founded to help Republican candidates beginning with Don Trump 327 00:18:00,440 --> 00:18:04,320 Speaker 2: America Pack. Rick says, it's offering one hundred bucks, it's 328 00:18:04,359 --> 00:18:07,280 Speaker 2: not a million this time, one hundred bucks to registered 329 00:18:07,320 --> 00:18:10,960 Speaker 2: voters in Wisconsin who sign a petition in opposition to 330 00:18:11,160 --> 00:18:17,000 Speaker 2: activist judges or refer others to sign it, spending millions 331 00:18:17,040 --> 00:18:20,160 Speaker 2: to elect a conservative candidate to the Wisconsin Supreme Court. 332 00:18:20,200 --> 00:18:20,360 Speaker 7: Here. 333 00:18:20,400 --> 00:18:23,960 Speaker 2: That election is the first of April. Remember last time 334 00:18:24,000 --> 00:18:25,919 Speaker 2: it was like a lottery. You had sign up getting 335 00:18:25,920 --> 00:18:28,320 Speaker 2: the lottery to win a million dollars. What do you 336 00:18:28,359 --> 00:18:30,680 Speaker 2: make of thee hundred bucks ahead here? Elon Musk has 337 00:18:30,720 --> 00:18:31,800 Speaker 2: been a busy man lately. 338 00:18:33,119 --> 00:18:37,040 Speaker 4: Yeah, it's a bounty to get information, right, So sign 339 00:18:37,080 --> 00:18:41,960 Speaker 4: this and then we've got your name, your address, your 340 00:18:42,000 --> 00:18:47,840 Speaker 4: cell phone, your your email. And this is what it's 341 00:18:47,880 --> 00:18:52,359 Speaker 4: all about, is identifying voters who have a willingness to 342 00:18:52,520 --> 00:18:56,960 Speaker 4: say yes to the profile that Brad Schimmel has, which 343 00:18:57,000 --> 00:19:00,159 Speaker 4: is the Republican candidate for the Supreme Court. And then 344 00:19:00,160 --> 00:19:02,480 Speaker 4: they're going to cross lay that over on all the 345 00:19:02,560 --> 00:19:06,399 Speaker 4: data they have on voters. And it's a very smart play. 346 00:19:07,880 --> 00:19:11,040 Speaker 4: There's still a lot of shrugs and scratch into the 347 00:19:11,119 --> 00:19:13,320 Speaker 4: head to determine whether any of this stuff is legal. 348 00:19:13,920 --> 00:19:16,159 Speaker 4: This being a state race, it doesn't have anything with 349 00:19:16,320 --> 00:19:20,119 Speaker 4: federal election laws. It's got state election laws written all 350 00:19:20,119 --> 00:19:23,199 Speaker 4: over it. And so look, I mean, Elon has the 351 00:19:23,240 --> 00:19:26,360 Speaker 4: money to do this kind of a technique. And if 352 00:19:26,359 --> 00:19:29,760 Speaker 4: you're in the data business. Politically, this is brilliant. You're 353 00:19:29,760 --> 00:19:32,800 Speaker 4: going to capture a lot of names and information. 354 00:19:33,880 --> 00:19:37,040 Speaker 2: That's fascinating. Jeanie, what do you think about this? Elon 355 00:19:37,160 --> 00:19:40,320 Speaker 2: Musk is a senior advisor to the president. There's nothing 356 00:19:40,359 --> 00:19:44,359 Speaker 2: illegal here, right, It's just an interesting look. Spending money 357 00:19:44,400 --> 00:19:47,000 Speaker 2: like this to get someone elected to the Wisconsin Supreme Court. 358 00:19:48,119 --> 00:19:51,080 Speaker 6: Yeah, not unless it violates a Wisconsin state law. And 359 00:19:51,119 --> 00:19:53,760 Speaker 6: apparently at this point nobody has suggested it, does. 360 00:19:54,920 --> 00:19:55,199 Speaker 2: You know? 361 00:19:55,480 --> 00:19:58,439 Speaker 6: It is fascinating though most of us go to the 362 00:19:58,480 --> 00:20:01,720 Speaker 6: ballot box, go to vote, and we see a litany 363 00:20:01,720 --> 00:20:03,879 Speaker 6: of judges on the ballot and even those of us 364 00:20:03,920 --> 00:20:06,680 Speaker 6: who follow up politics closely have no clue who many 365 00:20:06,720 --> 00:20:10,840 Speaker 6: of these people are. But Wisconsin has become a state 366 00:20:10,960 --> 00:20:13,760 Speaker 6: in which they're going to spend what, one hundred million 367 00:20:13,880 --> 00:20:17,720 Speaker 6: dollars on a Supreme Court race, and next year they're 368 00:20:17,760 --> 00:20:20,919 Speaker 6: saying it could go up to two hundred million dollars. 369 00:20:20,960 --> 00:20:24,280 Speaker 6: I mean, it's utterly astounding, and it really is a 370 00:20:24,359 --> 00:20:27,760 Speaker 6: battle of the billionaires because Elon Musk on the one side. 371 00:20:28,080 --> 00:20:30,640 Speaker 6: Then you look at the Democratic side and you've got 372 00:20:30,640 --> 00:20:34,080 Speaker 6: big spenders there like George Soros, the governor of Illinois. 373 00:20:34,480 --> 00:20:37,200 Speaker 6: So this is a race where their people are pouring 374 00:20:37,240 --> 00:20:41,439 Speaker 6: money in and Democrats are really really trying to figure 375 00:20:41,480 --> 00:20:44,920 Speaker 6: out can they put Musk at the top of every 376 00:20:44,960 --> 00:20:48,440 Speaker 6: ticket in the midterm and get out the vote that way? 377 00:20:48,600 --> 00:20:51,199 Speaker 6: And so they're hoping that Wisconsin, and then when we 378 00:20:51,240 --> 00:20:53,879 Speaker 6: go to the Virginia governor's race, they'll be able to 379 00:20:53,920 --> 00:20:57,199 Speaker 6: test some of these messages with Elon with his you know, 380 00:20:58,320 --> 00:21:01,520 Speaker 6: with his you know and all these things he's running 381 00:21:01,520 --> 00:21:04,960 Speaker 6: around with. Does it get people out? Our Democrats mad 382 00:21:05,080 --> 00:21:06,920 Speaker 6: enough that Elon must to get out to vote in 383 00:21:06,960 --> 00:21:09,679 Speaker 6: greater numbers. They have to be careful, though, because we 384 00:21:09,760 --> 00:21:13,159 Speaker 6: all remember a few years ago abortion did get Democrats 385 00:21:13,200 --> 00:21:17,400 Speaker 6: out in this same race, and the following year Donald 386 00:21:17,400 --> 00:21:20,679 Speaker 6: Trump won the state. So it doesn't always work the 387 00:21:20,720 --> 00:21:21,840 Speaker 6: way Democrats want. 388 00:21:22,840 --> 00:21:25,760 Speaker 2: Well, you set that up perfectly, Genie, And I'm wondering 389 00:21:25,800 --> 00:21:28,159 Speaker 2: what your thought is, Rick. Are we already giving too 390 00:21:28,280 --> 00:21:31,440 Speaker 2: much emphasis to this race as some sort of indicator 391 00:21:32,240 --> 00:21:34,040 Speaker 2: as to the political temperature in the country. 392 00:21:35,280 --> 00:21:37,120 Speaker 4: Yeah, I don't think we want to get too far 393 00:21:37,400 --> 00:21:39,840 Speaker 4: over our skis on the idea that this is going 394 00:21:39,920 --> 00:21:44,520 Speaker 4: to be indicative of any other race, but a statewide Wisconsin, 395 00:21:44,880 --> 00:21:47,679 Speaker 4: you know Supreme Court race. That being said, there is 396 00:21:47,760 --> 00:21:50,640 Speaker 4: a message being sent here, and this is we've heard 397 00:21:50,680 --> 00:21:53,800 Speaker 4: this a lot during the confirmation process that if you 398 00:21:53,880 --> 00:21:58,160 Speaker 4: don't pull the line on what Donald Trump wants in Congress, 399 00:21:58,760 --> 00:22:01,879 Speaker 4: you're going to have Elon and the America's pack and 400 00:22:01,880 --> 00:22:06,560 Speaker 4: the build America pack on your back. And him spending 401 00:22:06,600 --> 00:22:11,359 Speaker 4: twenty million dollars here is a proof point in that 402 00:22:11,440 --> 00:22:14,159 Speaker 4: when they get back to Congress and they've got a 403 00:22:14,200 --> 00:22:17,800 Speaker 4: tough vote, Elon Musk says, I'm going to run people 404 00:22:17,840 --> 00:22:20,480 Speaker 4: against you. If you don't pull the right trigger on 405 00:22:20,480 --> 00:22:22,359 Speaker 4: this vote, then then. 406 00:22:22,600 --> 00:22:25,119 Speaker 2: You know he means it because he just spent. 407 00:22:24,920 --> 00:22:30,000 Speaker 4: Twenty million bucks on a Wisconsin Supreme Court race. And 408 00:22:30,080 --> 00:22:33,119 Speaker 4: I think that's really the message that's being sent here. 409 00:22:34,240 --> 00:22:36,600 Speaker 2: Just give you a taste of how Democrats are handling 410 00:22:37,160 --> 00:22:39,240 Speaker 2: their side of the race. This is actually a piece 411 00:22:39,280 --> 00:22:40,960 Speaker 2: of an ad from Wisconsin Watch. 412 00:22:41,960 --> 00:22:47,880 Speaker 8: Attacking social Security, cutting medicaid and child cancer research, dismantling 413 00:22:47,920 --> 00:22:51,840 Speaker 8: the Department of Education. Elon Musk is out of control 414 00:22:52,280 --> 00:22:55,800 Speaker 8: and now the power hungry billionaire is unloading millions to 415 00:22:55,840 --> 00:22:57,520 Speaker 8: buy the Wisconsin Supreme Court. 416 00:22:59,160 --> 00:23:03,240 Speaker 2: That's from Wiscy Hansen Democrats, Genie, they found their boogeyman. 417 00:23:03,440 --> 00:23:06,200 Speaker 2: Is it going to work? We've got one minute. 418 00:23:06,359 --> 00:23:08,960 Speaker 6: Yeah, they're hoping, So we won't know until we get 419 00:23:08,960 --> 00:23:13,840 Speaker 6: these results out of Wisconsin. But already turnout is huge there. 420 00:23:13,880 --> 00:23:16,439 Speaker 6: They say it was up like one hundred and twenty 421 00:23:16,520 --> 00:23:19,960 Speaker 6: percent last time I checked, So it may turn people up. 422 00:23:20,000 --> 00:23:22,240 Speaker 6: But of course turnout, we don't know whether that is 423 00:23:22,280 --> 00:23:24,879 Speaker 6: for or against the Republicans, so we'll have to see. 424 00:23:24,880 --> 00:23:28,800 Speaker 6: But Democrats are certainly hoping that this GM's up turnout 425 00:23:28,840 --> 00:23:30,840 Speaker 6: in a race like this, and they can move that 426 00:23:31,000 --> 00:23:33,600 Speaker 6: into the midterm. But again, we don't know if Elon 427 00:23:33,680 --> 00:23:35,760 Speaker 6: Musk is going to be relevant by midterm time. 428 00:23:36,640 --> 00:23:39,320 Speaker 2: Yeah, race is April first. We'll be talking more about 429 00:23:39,320 --> 00:23:41,760 Speaker 2: it with Rick and Genie as we get closer. Isn't 430 00:23:41,760 --> 00:23:43,760 Speaker 2: it great to have these guys back together again? And 431 00:23:43,800 --> 00:23:46,920 Speaker 2: it's Friday. 432 00:23:47,920 --> 00:23:51,400 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 433 00:23:51,480 --> 00:23:54,879 Speaker 1: us live weekdays at noon and five pm Eastern on Apple, 434 00:23:54,960 --> 00:23:58,320 Speaker 1: Cockley and Android Otto with the Bloomberg Business App. Listen 435 00:23:58,400 --> 00:24:01,520 Speaker 1: on demand wherever you get your pots, or watch us 436 00:24:01,520 --> 00:24:02,480 Speaker 1: live on YouTube. 437 00:24:03,880 --> 00:24:06,679 Speaker 2: Perfects with the news here On Friday edition of Balance 438 00:24:06,720 --> 00:24:09,800 Speaker 2: of Power on Bloomberg TV and Radio. A stock moving 439 00:24:09,920 --> 00:24:12,840 Speaker 2: day here in Washington with the announcement of this new 440 00:24:12,840 --> 00:24:15,360 Speaker 2: defense contract, the next generation fighter is you just heard 441 00:24:15,400 --> 00:24:18,679 Speaker 2: from Charlie, it's moving Boeing, it's moving Lockheed. This market 442 00:24:18,680 --> 00:24:21,280 Speaker 2: does not smack of the Golden Age. However, we were 443 00:24:21,320 --> 00:24:24,040 Speaker 2: promised by this White House it will take time. According 444 00:24:24,119 --> 00:24:27,320 Speaker 2: to the headline on Josh Wingrow's great column, Julie, Fine, 445 00:24:27,800 --> 00:24:30,160 Speaker 2: we do want to dig into the decision making here 446 00:24:30,240 --> 00:24:33,119 Speaker 2: that went into this defense contract, and it really has 447 00:24:33,160 --> 00:24:34,520 Speaker 2: a lot to do with the optics. Like we were 448 00:24:34,520 --> 00:24:36,360 Speaker 2: discussing at the beginning of the hour here, the fact 449 00:24:36,400 --> 00:24:39,640 Speaker 2: that Elon Musk was at the Pentagon today the President 450 00:24:39,680 --> 00:24:43,040 Speaker 2: and the Defense Secretary asked by reporters about what's going 451 00:24:43,080 --> 00:24:45,359 Speaker 2: on today in the White House. Their attempt to frame 452 00:24:46,000 --> 00:24:47,600 Speaker 2: exactly why he was there. 453 00:24:47,560 --> 00:24:50,600 Speaker 9: And their attempt to frame it was doge. It always 454 00:24:50,640 --> 00:24:53,879 Speaker 9: seems to come back to doe job Ron muss So 455 00:24:54,000 --> 00:24:56,320 Speaker 9: that's what they said he was there doing. Josh Windrow, 456 00:24:56,320 --> 00:25:00,000 Speaker 9: we'd like to bring you in, our senior White House correspondent, Josh, 457 00:25:00,040 --> 00:25:02,159 Speaker 9: I want to talk to you about your reaction to 458 00:25:02,280 --> 00:25:03,320 Speaker 9: what you saw there. 459 00:25:04,000 --> 00:25:06,960 Speaker 7: I mean It's been an interesting morning here so far. 460 00:25:07,560 --> 00:25:10,879 Speaker 7: Look Trump reacting angrily but also fundamentally confirming key parts 461 00:25:10,920 --> 00:25:13,280 Speaker 7: of that story, which is that Elon is at DoD today. 462 00:25:13,440 --> 00:25:17,240 Speaker 7: So you know, I guess he's just talking about cost cutting, 463 00:25:17,560 --> 00:25:20,680 Speaker 7: but not about what many Trump allies views the number 464 00:25:20,680 --> 00:25:23,280 Speaker 7: one adversary of America. So you know who's to say, Well, 465 00:25:23,280 --> 00:25:25,720 Speaker 7: I'll come out in the wash on that. But right now, 466 00:25:25,720 --> 00:25:28,080 Speaker 7: it's a dynamic day there. But Trump is you know, 467 00:25:28,240 --> 00:25:30,840 Speaker 7: has been taking up and down in terms of public 468 00:25:30,920 --> 00:25:34,240 Speaker 7: profile this week. He you know, has over the last 469 00:25:34,280 --> 00:25:36,199 Speaker 7: couple of weeks, in particular with what we're seeing in markets. 470 00:25:36,240 --> 00:25:39,160 Speaker 7: So this his holding court today was the first time, 471 00:25:39,160 --> 00:25:41,920 Speaker 7: and he's not doing it as often as he used to. 472 00:25:41,960 --> 00:25:43,720 Speaker 7: I guess is what I'm fumbling at. 473 00:25:43,920 --> 00:25:46,879 Speaker 2: It's been an interesting time for Elon Musk and the 474 00:25:46,880 --> 00:25:48,920 Speaker 2: way the White House has tried to embrace him ever 475 00:25:48,920 --> 00:25:51,400 Speaker 2: since the Tesla's were lined up in the driveway there. Right, 476 00:25:52,040 --> 00:25:55,280 Speaker 2: you've got Howard Lutnik telling people to buy Tesla's stock, 477 00:25:55,400 --> 00:25:58,119 Speaker 2: the Commerce Secretary, of course, Elon told his workers to 478 00:25:58,160 --> 00:26:01,560 Speaker 2: hang onto their stock for a better yesterday. Now you've 479 00:26:01,560 --> 00:26:03,720 Speaker 2: got him over at the Pentagon and the Defense Secretary 480 00:26:03,760 --> 00:26:06,720 Speaker 2: with a full throated as you heard in the Oval Office, 481 00:26:06,880 --> 00:26:09,560 Speaker 2: Defense said, this is a great patriot and someone who 482 00:26:09,600 --> 00:26:13,680 Speaker 2: is actually helping the United States of America defend itself. 483 00:26:14,119 --> 00:26:16,840 Speaker 2: But you can't deny the inherent conflicts of interest here. 484 00:26:17,800 --> 00:26:21,199 Speaker 7: I mean this has been an animating issue throughout the 485 00:26:21,240 --> 00:26:22,119 Speaker 7: course of Elon. 486 00:26:21,880 --> 00:26:24,439 Speaker 2: Says anything louder than this one of the CEO of 487 00:26:24,480 --> 00:26:28,439 Speaker 2: SpaceX who doesn't like Lockheed Martin in the building at 488 00:26:28,480 --> 00:26:30,600 Speaker 2: the Pentagon the day Boeen gets a major contract. 489 00:26:31,040 --> 00:26:33,600 Speaker 7: I mean, the calls that are loudest for Elon are 490 00:26:33,640 --> 00:26:36,480 Speaker 7: coming from fans of his companies. I mean we saw 491 00:26:36,520 --> 00:26:38,200 Speaker 7: that in one of the stories on the terminal today. 492 00:26:38,240 --> 00:26:41,320 Speaker 7: It's advocates of Tesla saying that he's being pulled into 493 00:26:41,400 --> 00:26:45,280 Speaker 7: many directions, and Elon himself last night telling Tesla employees, look, 494 00:26:45,280 --> 00:26:48,159 Speaker 7: I feel like I have seventeen different jobs. Now I 495 00:26:48,240 --> 00:26:50,040 Speaker 7: only have one job. Joe. You feel like you have 496 00:26:50,119 --> 00:26:53,520 Speaker 7: a couple, Julie. God knows how many you have, but 497 00:26:53,720 --> 00:26:56,359 Speaker 7: Elon says he's got seventeen. And the pressure it seems 498 00:26:56,359 --> 00:26:58,800 Speaker 7: to be building more from that side, because if you're 499 00:26:58,800 --> 00:27:01,199 Speaker 7: a Tesla evangelist, you've seen this tock come down what 500 00:27:01,320 --> 00:27:03,760 Speaker 7: fifty percent in the last couple of months, and so 501 00:27:03,880 --> 00:27:06,040 Speaker 7: you are thinking that this is just too many directions 502 00:27:06,200 --> 00:27:09,760 Speaker 7: that he's being pulled into Trump. You know, when he 503 00:27:09,800 --> 00:27:13,000 Speaker 7: starts a sour on, someone signs bubble up. You know, 504 00:27:13,080 --> 00:27:16,760 Speaker 7: he starts kind of riffing, and you know he takes 505 00:27:16,760 --> 00:27:19,320 Speaker 7: the off ramp on a tangent here and there. We 506 00:27:19,359 --> 00:27:20,720 Speaker 7: haven't seen that with Elon. There's not a lot of 507 00:27:20,760 --> 00:27:22,800 Speaker 7: sign that Trump is distancing himself. On the contrary, you 508 00:27:22,800 --> 00:27:26,600 Speaker 7: mentioned the Tesla display on the South Lawn. So I think, 509 00:27:26,640 --> 00:27:28,480 Speaker 7: if anything, Trump loves Elon being around. 510 00:27:28,840 --> 00:27:31,240 Speaker 9: What's interesting about this, Josh, and we've talked about this 511 00:27:31,320 --> 00:27:33,800 Speaker 9: in the past, is you do see him souring on people. 512 00:27:33,880 --> 00:27:36,080 Speaker 9: You see it, You've seen it in twenty sixteen, you're 513 00:27:36,080 --> 00:27:39,760 Speaker 9: seeing it now in the second term. However, there's something 514 00:27:39,840 --> 00:27:44,400 Speaker 9: there about Elon that gives him staying power right now 515 00:27:44,480 --> 00:27:46,920 Speaker 9: that other people were not able to achieve. 516 00:27:47,400 --> 00:27:51,879 Speaker 7: Yeah, Trump likes celebrities, Trump likes a fellow business people, 517 00:27:51,920 --> 00:27:54,200 Speaker 7: and he thinks that there's waste and fraud in the government. 518 00:27:54,560 --> 00:27:56,240 Speaker 7: One of the things I think is flown under the 519 00:27:56,320 --> 00:27:59,639 Speaker 7: radar is Elon keeps like backtracking on some of the 520 00:27:59,680 --> 00:28:01,879 Speaker 7: saving that they're booking, right, and a lot of this 521 00:28:02,040 --> 00:28:04,920 Speaker 7: is simply a savings exercise ahead of these congressional talks. 522 00:28:04,960 --> 00:28:07,800 Speaker 7: They want to book savings and they want to make 523 00:28:07,880 --> 00:28:12,679 Speaker 7: the math work on the budget reconciliation package. But a 524 00:28:12,680 --> 00:28:15,200 Speaker 7: lot of that is just evaporated. They post things, they 525 00:28:15,200 --> 00:28:17,679 Speaker 7: take it down, they change it. In some cases have 526 00:28:18,560 --> 00:28:21,879 Speaker 7: overstated the savings by you know, several times. And so 527 00:28:22,000 --> 00:28:24,000 Speaker 7: right now, I think the Trump is there because he 528 00:28:24,080 --> 00:28:27,320 Speaker 7: thinks Elon is helping sort of break stuff that Trump 529 00:28:27,760 --> 00:28:29,920 Speaker 7: wants to break. I think tension always comes in the 530 00:28:29,960 --> 00:28:32,440 Speaker 7: Trump world. And I'm not saying that's happening yet. When 531 00:28:32,640 --> 00:28:35,240 Speaker 7: things start breaking that Trump does not want to break. 532 00:28:35,280 --> 00:28:37,399 Speaker 7: And when that happens, we'll see where it goes. We 533 00:28:37,400 --> 00:28:39,600 Speaker 7: have seen elements of that. I will note on things 534 00:28:39,640 --> 00:28:42,680 Speaker 7: like staffing cuts with Trump holding cabin meetings say actually 535 00:28:42,680 --> 00:28:44,360 Speaker 7: we're not going to just get rid of everyone. Don't 536 00:28:44,360 --> 00:28:46,720 Speaker 7: cut with an axe, cut with a scalpel. Keep the 537 00:28:46,760 --> 00:28:49,040 Speaker 7: good people. Of course, better said than they're, easier said 538 00:28:49,080 --> 00:28:49,560 Speaker 7: than done. 539 00:28:49,680 --> 00:28:51,120 Speaker 2: We've only got about a minute left. I want to 540 00:28:51,160 --> 00:28:52,560 Speaker 2: ask you about this great piece you have on the 541 00:28:52,680 --> 00:28:55,560 Speaker 2: terminal and at Bloomberg dot Com sharing the byline with 542 00:28:55,600 --> 00:29:00,720 Speaker 2: Hadriana Lowen Kron, Trump says promised us golden age, take time. 543 00:29:00,800 --> 00:29:02,880 Speaker 2: It gets us back to the no pain, no gain 544 00:29:02,960 --> 00:29:05,880 Speaker 2: idea that the market really doesn't seem to be buying 545 00:29:05,920 --> 00:29:06,440 Speaker 2: at the moment. 546 00:29:06,560 --> 00:29:09,040 Speaker 7: Yeah, I should pay tribute to Adrianna for sharing her 547 00:29:09,040 --> 00:29:13,760 Speaker 7: byline with me. What a colleague we have that nice No, No, 548 00:29:14,480 --> 00:29:16,760 Speaker 7: she's doing good. It's a great story. If I can 549 00:29:16,880 --> 00:29:19,920 Speaker 7: humbly say, we have been waiting for to see when 550 00:29:19,920 --> 00:29:22,720 Speaker 7: Trump really wraps his arms around this economy, because, if anything, 551 00:29:22,720 --> 00:29:24,200 Speaker 7: that'll be a sign that he thinks that it's going 552 00:29:24,240 --> 00:29:27,520 Speaker 7: in one direction. Right. He has been waffling on that, 553 00:29:27,600 --> 00:29:30,400 Speaker 7: and his aids have been sort of distancing themselves and say, hey, 554 00:29:30,400 --> 00:29:32,520 Speaker 7: when does he own this? When is it no longer 555 00:29:32,560 --> 00:29:34,680 Speaker 7: the sort of Joe Biden. What they argue is to 556 00:29:34,760 --> 00:29:37,680 Speaker 7: Joe Biden sort of hangover economy, when does it become 557 00:29:37,760 --> 00:29:40,080 Speaker 7: the Trump economy? And they're saying six to twelve months, 558 00:29:40,240 --> 00:29:43,320 Speaker 7: Q three, Q four. One aide telling us, look, it 559 00:29:43,360 --> 00:29:46,040 Speaker 7: depends on the policies. It'll be the Trump economy if 560 00:29:46,040 --> 00:29:48,920 Speaker 7: we get our policies enacted, including in Republicans pass that 561 00:29:49,120 --> 00:29:51,239 Speaker 7: tax bill. But all this is sort of, you know, 562 00:29:51,280 --> 00:29:53,360 Speaker 7: not what Trump promised on the campaign trail, right He 563 00:29:53,360 --> 00:29:57,200 Speaker 7: promised literally a miracle. He promised a golden age. And 564 00:29:57,280 --> 00:29:59,480 Speaker 7: so right now the question is like, what are we 565 00:29:59,520 --> 00:30:01,960 Speaker 7: seeing the Every president in the history of times takes 566 00:30:01,960 --> 00:30:03,880 Speaker 7: credit for the economy. The difference is that the threat 567 00:30:03,920 --> 00:30:06,160 Speaker 7: to the economy right now, the thing that's weighing on 568 00:30:06,200 --> 00:30:09,480 Speaker 7: sentiment is Trump's own policies. It's a tariff question hanging 569 00:30:09,480 --> 00:30:10,840 Speaker 7: in the air. We'll have a lot more clarity on 570 00:30:10,880 --> 00:30:13,520 Speaker 7: that in April. Second. If it's narrower than expected, then 571 00:30:13,600 --> 00:30:15,680 Speaker 7: markets will be happy. If it's wider than expected, then 572 00:30:15,880 --> 00:30:18,200 Speaker 7: who knows for sentimental cover Right now, we heard it 573 00:30:18,200 --> 00:30:21,760 Speaker 7: from J. Powell. The thing that's weighing on markets, the 574 00:30:21,800 --> 00:30:23,440 Speaker 7: thing that it's making Donald Trump not really want to 575 00:30:23,440 --> 00:30:26,240 Speaker 7: wrap his arms around it is, of course Trump himself 576 00:30:26,280 --> 00:30:27,360 Speaker 7: and his policy's on trade. 577 00:30:27,400 --> 00:30:29,880 Speaker 2: We're going to talk to Mackenzie Egland in a moment 578 00:30:29,960 --> 00:30:33,520 Speaker 2: from the American Enterprise Institute about this contract being awarded today. 579 00:30:33,760 --> 00:30:35,880 Speaker 2: Did he come up with the F forty seven? 580 00:30:36,240 --> 00:30:38,960 Speaker 7: That's a great I was laughing, laughing device. 581 00:30:39,200 --> 00:30:42,440 Speaker 2: Serious, let us know if you find it. 582 00:30:42,480 --> 00:30:44,640 Speaker 7: I mean Space Force seemed like it was a riff. 583 00:30:44,680 --> 00:30:46,320 Speaker 7: And here we have a Space Force now as well, 584 00:30:46,520 --> 00:30:47,320 Speaker 7: all these years later. 585 00:30:47,400 --> 00:30:49,000 Speaker 2: So there was no F forty five. I mean we 586 00:30:49,080 --> 00:30:49,640 Speaker 2: got to go back. 587 00:30:49,640 --> 00:30:51,400 Speaker 7: I mean it couldn't. Yeah, maybe they'll settle on that 588 00:30:51,440 --> 00:30:54,400 Speaker 7: as a compromise. Find forty six I think is out though. 589 00:30:55,000 --> 00:30:59,240 Speaker 2: Find Haydriana how true and Josh's story on the terminal 590 00:30:59,240 --> 00:31:01,600 Speaker 2: is great to see you. Thanks, right from the White 591 00:31:01,640 --> 00:31:04,440 Speaker 2: House to your TV and radio. I'm Joe, Matthew and Washington. 592 00:31:04,440 --> 00:31:07,440 Speaker 2: As we do prepare to add Mackenzie Eagland's voice to 593 00:31:07,440 --> 00:31:09,440 Speaker 2: the equation, Let's bring you back to the Oval Office 594 00:31:09,480 --> 00:31:10,840 Speaker 2: for this important announcement today. 595 00:31:11,640 --> 00:31:15,400 Speaker 5: After a rigorous and thorough competition between some of America's 596 00:31:15,400 --> 00:31:18,720 Speaker 5: top aerospace companies, the Air Force is going to be 597 00:31:18,760 --> 00:31:23,520 Speaker 5: awarding the contract for the next generation air dominance platform 598 00:31:23,880 --> 00:31:28,440 Speaker 5: to Boeing, as you know, was highly competed for. There 599 00:31:28,480 --> 00:31:29,520 Speaker 5: was a lot of competition. 600 00:31:32,320 --> 00:31:34,600 Speaker 2: The President a short time ago behind the resolute desk. 601 00:31:34,640 --> 00:31:38,880 Speaker 2: As we bring in Mackenzie Eagland, Senior fellow American Enterprise Institute, McKenzie, 602 00:31:38,880 --> 00:31:41,160 Speaker 2: it's great to have you with us here on what 603 00:31:41,280 --> 00:31:43,680 Speaker 2: is a breaking news story. We finally got the contract 604 00:31:44,120 --> 00:31:46,920 Speaker 2: and we have a sense of the contours of this program. 605 00:31:46,960 --> 00:31:49,760 Speaker 2: We even know it's called the F forty seven. Is 606 00:31:49,800 --> 00:31:50,640 Speaker 2: this money well spent? 607 00:31:52,600 --> 00:31:55,920 Speaker 10: It's necessary money to spend. It's an expensive aircraft. But 608 00:31:56,440 --> 00:31:59,320 Speaker 10: the Pentagon doesn't buy enough gail. So when you buy 609 00:31:59,440 --> 00:32:03,360 Speaker 10: very few of some thing, of course it costs more money. 610 00:32:03,440 --> 00:32:03,640 Speaker 5: You know. 611 00:32:03,680 --> 00:32:05,440 Speaker 9: Obviously this was sought after. 612 00:32:05,640 --> 00:32:06,520 Speaker 2: Why Boeing. 613 00:32:09,040 --> 00:32:12,160 Speaker 10: So Boeing, you know, they have a long history of 614 00:32:12,680 --> 00:32:17,360 Speaker 10: terrific military products, albeit in some cases behind schedule and 615 00:32:17,440 --> 00:32:20,080 Speaker 10: with some difficulty when they cross over to their commercial lines. 616 00:32:20,160 --> 00:32:23,840 Speaker 10: But this is a program that's not joint with the Navy, 617 00:32:23,840 --> 00:32:26,560 Speaker 10: but sort of in partnership with the Navy, and Boeing 618 00:32:26,560 --> 00:32:30,480 Speaker 10: built the Navy's air Superiority fighters, and they have a 619 00:32:30,560 --> 00:32:34,720 Speaker 10: role in other different aircraft programs as well, across the 620 00:32:34,720 --> 00:32:38,960 Speaker 10: defense and aerospace accounts. And so it's the right it's 621 00:32:39,000 --> 00:32:42,320 Speaker 10: the winner. Lockey dropped out. It came down to Boeing 622 00:32:42,320 --> 00:32:44,800 Speaker 10: and Northrop, and they were chosen for a variety of 623 00:32:44,800 --> 00:32:47,240 Speaker 10: reasons that will not become public for you and I 624 00:32:47,320 --> 00:32:51,240 Speaker 10: to know fully, except that it was the right combination 625 00:32:51,600 --> 00:32:54,840 Speaker 10: of cost and that meets the threats that depending on 626 00:32:55,000 --> 00:32:57,120 Speaker 10: is looking at interesting. 627 00:32:57,240 --> 00:33:00,520 Speaker 2: This is an aircraft that won't be in service until 628 00:33:00,800 --> 00:33:06,200 Speaker 2: the twenty thirties. Mackenzie. What war is this preparing for? 629 00:33:06,360 --> 00:33:09,560 Speaker 2: Is this an answer to China's next generation fighter that 630 00:33:09,640 --> 00:33:12,360 Speaker 2: it recently unveiled, or at least we saw images of. 631 00:33:14,200 --> 00:33:17,520 Speaker 10: In part, But it really so. The US Air Force 632 00:33:17,680 --> 00:33:21,440 Speaker 10: is the only branch of any military in the world 633 00:33:21,840 --> 00:33:25,840 Speaker 10: that can hold Chinese targets in the mainland China at risk. 634 00:33:26,320 --> 00:33:28,200 Speaker 10: If you want to continue to be able to do that, 635 00:33:28,320 --> 00:33:31,240 Speaker 10: to have that unique capability on planet Earth, you have 636 00:33:31,280 --> 00:33:34,120 Speaker 10: to have a new bomber kind of shuts you know, 637 00:33:34,160 --> 00:33:36,320 Speaker 10: opens the door for the fighter to come in behind it, 638 00:33:36,360 --> 00:33:39,760 Speaker 10: the air superiority fighter and clear you know, the air 639 00:33:39,960 --> 00:33:44,840 Speaker 10: of enemy air defenses, anti access and area denial capabilities, 640 00:33:44,920 --> 00:33:47,800 Speaker 10: other long range strike assets. So the bomber and the 641 00:33:47,800 --> 00:33:51,840 Speaker 10: fighter and some space assets work together to keep that 642 00:33:51,960 --> 00:33:55,080 Speaker 10: unique position in the United States of America's military and 643 00:33:55,120 --> 00:33:58,080 Speaker 10: so and yet another reason why you need to invest 644 00:33:58,080 --> 00:34:04,120 Speaker 10: in it and why it's verys. 645 00:34:02,240 --> 00:34:05,000 Speaker 9: What's interesting about this, As President Trump said, the plane 646 00:34:05,160 --> 00:34:08,680 Speaker 9: will travel with drones. He said, quote as many drones 647 00:34:08,760 --> 00:34:10,359 Speaker 9: as you want. Is this a fighter jet? 648 00:34:10,480 --> 00:34:11,480 Speaker 10: Is it really a. 649 00:34:11,360 --> 00:34:14,799 Speaker 9: Platform for drones, you know, explain the concept there. 650 00:34:16,080 --> 00:34:18,720 Speaker 10: Sure, this is sort of like a loyal wingman concept. 651 00:34:18,760 --> 00:34:22,040 Speaker 10: So the F forty seven is a penetrating combat aircraft, 652 00:34:22,480 --> 00:34:24,839 Speaker 10: but it's a part of a family, and it's also 653 00:34:25,520 --> 00:34:30,279 Speaker 10: informing other air force acquisition guideposts for the future. We'll 654 00:34:30,280 --> 00:34:32,439 Speaker 10: talk about that in a moment. But it will fly 655 00:34:32,600 --> 00:34:38,759 Speaker 10: alongside hundreds of drones called the collab autonomous aircraft called 656 00:34:38,800 --> 00:34:42,560 Speaker 10: collaborative combat aircraft, and it will also have presumably a 657 00:34:42,640 --> 00:34:46,520 Speaker 10: stealth tanker capability with it could also be I mean 658 00:34:46,600 --> 00:34:48,320 Speaker 10: in theory that could also be a drone truck, a 659 00:34:48,360 --> 00:34:51,520 Speaker 10: fuel drone truck next to it. So it's going to 660 00:34:51,560 --> 00:34:56,160 Speaker 10: sort of be the mothership to these other loyal autonomous 661 00:34:56,360 --> 00:35:01,520 Speaker 10: mostly presumably autonomous wings. And then there are some off 662 00:35:01,520 --> 00:35:04,040 Speaker 10: board capabilities in other parts of the system that of 663 00:35:04,080 --> 00:35:05,520 Speaker 10: course are not in the air as well. 664 00:35:06,640 --> 00:35:10,080 Speaker 2: Well. Sounds fascinating, to be honest, to actually see this 665 00:35:10,120 --> 00:35:13,400 Speaker 2: in the real world is going to be something McKenzie. 666 00:35:13,400 --> 00:35:17,160 Speaker 2: What's next? Obviously next generation fighter was near the top 667 00:35:17,200 --> 00:35:18,919 Speaker 2: of the list here, but we've heard a lot about 668 00:35:19,000 --> 00:35:22,200 Speaker 2: the rebuilding, the revamping of our navy, the ship building 669 00:35:22,239 --> 00:35:25,480 Speaker 2: plans that this White House and this Pentagon has Is 670 00:35:25,480 --> 00:35:27,640 Speaker 2: that next on the list or are we looking somewhere else. 671 00:35:28,800 --> 00:35:31,319 Speaker 10: I expect there to be a lot of investment in 672 00:35:31,360 --> 00:35:34,279 Speaker 10: the United States Navy, but moving it towards the same 673 00:35:34,320 --> 00:35:36,880 Speaker 10: direction the aircraft they excuse me, the air Force is heading, 674 00:35:36,880 --> 00:35:42,080 Speaker 10: which is more autonomous supplemental capability to sail alongside or 675 00:35:42,239 --> 00:35:46,680 Speaker 10: undersea with US Navy ships because it takes so long 676 00:35:46,719 --> 00:35:49,640 Speaker 10: for these manned capabilities to come online, because we demand that, 677 00:35:49,719 --> 00:35:54,080 Speaker 10: we demand exquisite systems and safety and testing and other things. 678 00:35:54,440 --> 00:35:56,880 Speaker 10: Since it's for the armed forces, the Navy's going to 679 00:35:56,880 --> 00:35:59,280 Speaker 10: be moving in the same direction, not just for ships, 680 00:35:59,280 --> 00:36:01,800 Speaker 10: but what goes on top of the ships or inside 681 00:36:01,800 --> 00:36:04,879 Speaker 10: the ships, so meaning aircraft, missiles, and munitions, etc. 682 00:36:05,840 --> 00:36:06,680 Speaker 2: But I also. 683 00:36:06,440 --> 00:36:10,040 Speaker 10: Think the Golden Dome for America will be another investment 684 00:36:10,080 --> 00:36:12,040 Speaker 10: that's going to move pretty quickly. With a lot of 685 00:36:12,040 --> 00:36:14,960 Speaker 10: announcements this year, which we know is a priority for 686 00:36:15,000 --> 00:36:16,919 Speaker 10: this White House. I'd see these are probably the three 687 00:36:17,000 --> 00:36:20,719 Speaker 10: marquee baskets of investments for this year for this administration. 688 00:36:23,520 --> 00:36:27,600 Speaker 9: If you're introducing a new billion dollar plane, this is 689 00:36:27,680 --> 00:36:30,959 Speaker 9: the era of dose, So what do you think will 690 00:36:31,000 --> 00:36:33,759 Speaker 9: be cut what will change because of all the money 691 00:36:33,840 --> 00:36:34,239 Speaker 9: going to. 692 00:36:34,200 --> 00:36:40,440 Speaker 10: This, which I think is great. Honestly, it's refreshing, frankly 693 00:36:40,520 --> 00:36:44,759 Speaker 10: to have the largest federal bureaucracy, larger than every other 694 00:36:44,840 --> 00:36:50,080 Speaker 10: agency combined, shook up and having each program justify its existence, 695 00:36:50,120 --> 00:36:53,480 Speaker 10: whether that's an organization, a human or a weapons system 696 00:36:53,480 --> 00:36:57,640 Speaker 10: and capability. So clearly you'll start with other so called 697 00:36:57,719 --> 00:37:02,759 Speaker 10: legacy systems that don't to meet the threat profile that 698 00:37:02,800 --> 00:37:06,200 Speaker 10: depending on is looking at, particularly relative to China, and 699 00:37:06,239 --> 00:37:09,720 Speaker 10: you'll offload those to help reinvest some of the money 700 00:37:09,760 --> 00:37:14,400 Speaker 10: required for the penetrating combat aircraft program that forty seven. 701 00:37:14,760 --> 00:37:18,080 Speaker 10: But beyond that, you're going to also try and streamline. Well, 702 00:37:18,080 --> 00:37:19,480 Speaker 10: you're going to want to move ahead, you know with 703 00:37:19,520 --> 00:37:23,000 Speaker 10: the stealth tanker. That program has been challenged as well. 704 00:37:23,040 --> 00:37:25,320 Speaker 10: The Air Force has had a lot of acquisition challenges 705 00:37:25,360 --> 00:37:28,080 Speaker 10: the last twenty years, so it's important to get the 706 00:37:28,160 --> 00:37:30,160 Speaker 10: Air Force in sort of a good place, a healthy 707 00:37:30,160 --> 00:37:33,160 Speaker 10: place with spending. But then you're going I expect other 708 00:37:33,280 --> 00:37:39,200 Speaker 10: streamlining of other organizations and commands and units and people 709 00:37:39,239 --> 00:37:41,520 Speaker 10: because really those are the most expensive things the Air 710 00:37:41,520 --> 00:37:45,080 Speaker 10: Force buys. It's not aircraft, it's bases, places and people 711 00:37:45,160 --> 00:37:49,439 Speaker 10: and services, so you'll see a corresponding reduction I think 712 00:37:49,560 --> 00:37:53,040 Speaker 10: in force structure alongside of the investment in this program. 713 00:37:54,239 --> 00:37:56,760 Speaker 2: McKenzie, you've only got a minute left here watching Boeing 714 00:37:56,760 --> 00:37:59,560 Speaker 2: shares rise over five percent at the moment. From the 715 00:37:59,600 --> 00:38:05,240 Speaker 2: investment standpoint, are these old line massive defense contractors still 716 00:38:05,320 --> 00:38:08,640 Speaker 2: sound investments? Do they have the growth potential that they 717 00:38:08,719 --> 00:38:13,040 Speaker 2: used to have up against many smaller private companies making drones, 718 00:38:13,080 --> 00:38:15,480 Speaker 2: making software, reinventing defense. 719 00:38:17,600 --> 00:38:21,840 Speaker 10: It depends if the pie grows, it's big enough to 720 00:38:21,880 --> 00:38:25,359 Speaker 10: broaden the industrial base and strengthen the traditional industrial base, 721 00:38:25,400 --> 00:38:29,640 Speaker 10: although I expect at the end of this presidential administration, 722 00:38:29,800 --> 00:38:32,839 Speaker 10: you know, there may be one fewer, but otherwise there's 723 00:38:32,880 --> 00:38:35,319 Speaker 10: a lot of partnership going on between and among them 724 00:38:35,360 --> 00:38:38,200 Speaker 10: behind the scenes, but there is room for new entrant 725 00:38:38,280 --> 00:38:42,840 Speaker 10: and disruption. The primes do something that the other companies 726 00:38:42,880 --> 00:38:45,359 Speaker 10: haven't yet shown that they can do. When they can 727 00:38:45,360 --> 00:38:47,600 Speaker 10: do it, then maybe. 728 00:38:47,920 --> 00:38:49,880 Speaker 2: It's great to have you with us from the American 729 00:38:50,000 --> 00:38:53,880 Speaker 2: Enterprise Institute, Mackenzie Eglan. On this day, Boeing lands the 730 00:38:53,920 --> 00:38:58,160 Speaker 2: big next generation fighter contract. I'm Joe Matthew alongside Julie 731 00:38:58,200 --> 00:39:05,520 Speaker 2: Fine in Washington, This is Bloomberg. Thanks for listening to 732 00:39:05,560 --> 00:39:08,960 Speaker 2: the Balance of Power podcast. Make sure to subscribe if 733 00:39:08,960 --> 00:39:11,719 Speaker 2: you haven't already, at Apple, Spotify, or wherever you get 734 00:39:11,719 --> 00:39:14,760 Speaker 2: your podcasts, and you can find us live every weekday 735 00:39:14,760 --> 00:39:18,640 Speaker 2: from Washington, DC at Noontimeeastern at Bloomberg dot com.