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Speaker 1: Live from our nation's camera. This budget thing is going

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Speaker 1: to do nothing. Space Forts. I still think it's interesting

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Speaker 1: President Trump not playing his cards yet. Headlines Policy and

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Speaker 1: politics colliding Floomberg Sound On, the Insiders, the influencers, the insides.

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Speaker 1: I would rather see a congressional solution. It's part of

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Speaker 1: my DNA. The Senate map in looks a lot different

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Speaker 1: than it looked in. You really have a divide within

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Speaker 1: Team Trump. The President has to do exactly what people

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Speaker 1: send him here to do, which is to get it done.

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Speaker 1: This is Bloomberg Sound On with Keavens Shirling on Floomberg

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Speaker 1: and one oh five point seven fm h D two.

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Speaker 1: President Trump held a call but Jamie Diamond, Patrick moynihan

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Speaker 1: and others. As the markets plunged plunge, President Trump calling

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Speaker 1: in the nation's top top top CEOs, Brian moynihan. It's Friday, folks,

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Speaker 1: I'm already having a blunder uh as the markets plunge,

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Speaker 1: we're gonna talk about all the volatility. Earlier this week,

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Speaker 1: and a new poll out says that Democrats have Senator

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Speaker 1: Elizabeth Warren as their second choice. Who's at the top,

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Speaker 1: Tyler Pager, Bloomberg News national political reporter here to break

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Speaker 1: down all of the latest campaign fodder. Matt Brooks's back,

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Speaker 1: Republican strategist and executive director of the Republican Jewish Coalition.

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Speaker 1: He's gonna tell us about lawmaker's recent trip to Israel

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Speaker 1: this week. Some of them are just returning today. And

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Speaker 1: Pedro da Costa, remember him. Pedro da Costa, now the

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Speaker 1: director of communications at the Economic Policy Institute, makes his

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Speaker 1: Bloomberg sound on debut. You don't want to miss that.

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Speaker 1: But first, I'm headed back to Philly tonight for my

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Speaker 1: mother's birthday. Tomorrow, We're going out to dinner with Chickie Cereally,

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Speaker 1: so an early happy birthday to Mrs Cereali. But lots

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Speaker 1: to get through today, folks. I'm Kevin Cereli, chief Washington

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Speaker 1: correspondent for Bloomberg Television and Bloomberg Radio. We're gonna talk

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Speaker 1: about US China trade policy coming up. But I want

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Speaker 1: to start with this new poll out with the twenty campaign.

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Speaker 1: Elizabeth Warren this second choice for the greatest number of

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Speaker 1: Democratic primary voters, suggesting more upside for the Massachusetts senator.

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Speaker 1: As the field begins to naro, Joe Biden still at

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Speaker 1: the top, of the pack here with me in studio,

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Speaker 1: Matt Brooks, Republican strategist, executive director of the Republican Jewish Coalition,

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Speaker 1: Pedro Da Costa, previously with The Wall Street Journal, now

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Speaker 1: the director of communications at the Economic Policy Institute, And

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Speaker 1: Tyler Pager, who covers all things US at Bloomberg News.

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Speaker 1: You're about to get on a flight to the Moyne

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Speaker 1: on Sunday. Tie. So you look at this poll, and

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Speaker 1: everybody wants Elizabeth Warren. It would seem number two. This

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Speaker 1: is a good news. This is good news for Warren,

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Speaker 1: bad news for Bernie. Yeah. I think this is a

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Speaker 1: trend that we're consistently seeing in this race, with a

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Speaker 1: lot of people coalescing behind Elizabeth Warren, if not their

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Speaker 1: first choice, their second choice. And I think she has

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Speaker 1: the capacity to pick up voters from two pools. One

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Speaker 1: is Bernie Sanders voter. There's people that supported him in

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Speaker 1: sixteen and are now maybe looking for a female candidate UM.

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Speaker 1: But also people that are supporting maybe Joe Biden right now.

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Speaker 1: There was a there's a lot of conversation around Elizabeth

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Speaker 1: Warren's electability UM, and so people I've talked to voters

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Speaker 1: who really like her, but are a little worried about

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Speaker 1: whether or not she could defeat Trump in a general.

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Speaker 1: So if we see Biden start to slip in the polls,

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Speaker 1: I think we might see Warren gain from that as well.

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Speaker 1: I think Kamala Harris would like to gain from from

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Speaker 1: those voters that might back away from Biden. But I

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Speaker 1: think Elizabeth Warren is running in a really strong position.

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Speaker 1: Right What do you attribute to the biggest blunder that

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Speaker 1: that Kamala made in the in the early post Miami debate.

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Speaker 1: So I don't know if it was a blunder per se.

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Speaker 1: I think she really had a strong moment in that

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Speaker 1: first debate, challenging Joe Biden in very personal terms about

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Speaker 1: his history and past positions on bussing. I just don't

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Speaker 1: know if if Kama Harris was able to sustain that momentum.

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Speaker 1: And then in the second debate, she was put on

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Speaker 1: the defensive, most notably by Tulsi Yabberd, who challenged her

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Speaker 1: on her prosecutorial record, which was surprising that Kama Harris

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Speaker 1: seemed not as prepared to take on that line of criticism,

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Speaker 1: given that has been one tulse he was telegraphing she

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Speaker 1: was going to say that, but too, that's something that

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Speaker 1: Kamala Harris has had to deal with as a as

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Speaker 1: a persistent point of criticism throughout her presidential run and

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Speaker 1: even before, and so it was a little surprising to

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Speaker 1: And I also think just on the campaign trail, there's

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Speaker 1: been some moments that I've emerged, is like that one

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Speaker 1: exchange that I saw with her and a senior citizen

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Speaker 1: talking about Medicare. I don't know, I mean, you know, well,

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Speaker 1: health care, heal care has been something that she's also

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Speaker 1: struggled a little bit with in terms of flip flopping.

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Speaker 1: She put on her own plan now words, not mine.

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Speaker 1: She she just hasn't been consistent in what her policy

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Speaker 1: is until she put out her own plan and that

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Speaker 1: that attack could stick. That Brooks shows up to the

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Speaker 1: Bloomberg studio and he says, keV, you should just roll

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Speaker 1: back the tape from the other week when I said

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Speaker 1: that people were going to rally behind Elizabeth Warren and

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Speaker 1: that you know that there they're gonna start to coalesce.

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Speaker 1: All right, you know that's what we have you on

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Speaker 1: your you know what you're talking about Matt Brooks. So

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Speaker 1: what do you make at this polt? I think you

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Speaker 1: have me on to talk about the birds, but uh,

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Speaker 1: you'll beyond like literally every Monday in the phone postgame

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Speaker 1: analysis on that kind of show, keep going. But I

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Speaker 1: think it's I think it's interesting. What what Elizabeth Warren

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Speaker 1: realized early on is that her main opponent initially was

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Speaker 1: not was not Joe Biden. She decided, and correctly so,

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Speaker 1: that she needed to kneecap Bernie Sanders first in order

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Speaker 1: to get a clean shot at Joe Biden. And that's

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Speaker 1: what you're seeing now. There was an interesting development this week,

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Speaker 1: and I'm gonna be very I'm gonna watch it very closely.

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Speaker 1: A lot of people, you know, it's below the radar,

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Speaker 1: but I'm gonna be very interested to see how this

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Speaker 1: plays out. And that she announced that, you know, her

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Speaker 1: pledge to not take corporate money and large donations ends

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Speaker 1: once she gets the primary. And I think that, uh,

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Speaker 1: you know, that is gonna ruffle some feathers within her

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Speaker 1: progressive bas you know, and certainly highlight the hypocrisy of

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Speaker 1: her attacks on corporate American and their role in influence

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Speaker 1: in politics, which she starts taking that money in the

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Speaker 1: general elections. So smart and this is tease it up

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Speaker 1: right for Pedro Dacosta's first remarks on Bloomberg's sound on,

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Speaker 1: I mean, can she get away with that? That's a

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Speaker 1: good question. I mean so I think Elizabeth Warren so

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Speaker 1: first of all, to background, the Economic Policy Institute is

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Speaker 1: nonpartisan and move back no candidates, but we are very

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Speaker 1: in touch with the progressive community. We follow very closely,

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Speaker 1: specifically the policy proposals that they all put out. Uh

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Speaker 1: and uh. I'm not sure how her taking corporate money

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Speaker 1: would play politically. I would think that there are enough

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Speaker 1: people within the progressive base that have uh enough of

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Speaker 1: a desire to defeat Trumpism as a movement that they

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Speaker 1: would forgive forgive her for that transgression. But I'm not

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Speaker 1: quite sure how they would play out. But I just

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Speaker 1: as far as the story that she's telling in in

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Speaker 1: her surge, I think what's interesting. As a reporter who

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Speaker 1: used to talk to her when she was just a

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Speaker 1: Harvard law professor doing credit advocacy, she's telling a very

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Speaker 1: consistent story. What I hear her saying now is literally

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Speaker 1: what she was telling me on the phone in two

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Speaker 1: thousand and six when she was talking to you and

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Speaker 1: only talking to you, because then when she was in

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Speaker 1: the Senate she wouldn't talk to anyone but Pager. I'm

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Speaker 1: not bitter or anything, but we have interviewed from multiple

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Speaker 1: times since, and you're welcome on the program, Senator Warren anytime.

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Speaker 1: But I was struck by this. I got flashbacks Matt

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Speaker 1: when I when I heard you talking because candidate Donald

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Speaker 1: Trump said that he was only that he was going

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Speaker 1: to sell finance and it's kind of that same tension,

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Speaker 1: and then ultimately was able to raise funds through the RNC.

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Speaker 1: This is a bit different, though different because she is

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Speaker 1: essentially saying break up big banks, and it's and it's

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Speaker 1: been consistently, to Pedro's point, uh critical, putting it mildly

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Speaker 1: against business. Yeah, I mean, I think it's a it's

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Speaker 1: a big issue of credibility potentially. First of all, having

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Speaker 1: had significant experience with the Tea Party folks on the right,

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Speaker 1: I can tell you that the progressives on the left

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Speaker 1: are just as adamant about intellectual purity as they are

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Speaker 1: on the right. And if they think that that someone's

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Speaker 1: veering away a from the ideal, you know, they won't

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Speaker 1: take too kindly to it. We've seen, We've seen in

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Speaker 1: the intellectual purity. Have you seen from the right everybody

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Speaker 1: has fallen in line with Trump? Is um you know

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Speaker 1: what I'm saying. But even in the height of the

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Speaker 1: Tea Party, if you go back to the UH, Paul

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Speaker 1: Ryan and embraced the budget busting deficit. But look at

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Speaker 1: look at the Freedom Caucus. Look at the Freedom Caucus.

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Speaker 1: Guys who wouldn't go along with any of the UH

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Speaker 1: legislation and stuff. The mark meadows of the world and

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Speaker 1: those folks who mark metals is completely in line with

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Speaker 1: Donald Trumping. Now he is. But I'm just saying, but

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Speaker 1: at the time, the Tea Party was always ruffling the feathers,

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Speaker 1: to Matt's point, was always pushing back against Paul Ryan.

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Speaker 1: I mean and and but that's when Mamma was empowered.

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Speaker 1: Their was to their right. But he's saying that the

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Speaker 1: regress of the aocs of the world, there's at tension.

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Speaker 1: There is a clear attention between AOC and the likes Tyler.

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Speaker 1: Patri has to catch a plane to Iowa. So Tyler,

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Speaker 1: what should we be looking. I don't want to get

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Speaker 1: off topic because we're gonna talk more about the policy,

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Speaker 1: sticking with what's on your immediate short term in the

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Speaker 1: next seventy two hours on this crowded campaign, what are

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Speaker 1: they to drop out? Well, that's the big question, and

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Speaker 1: that's what I was gonna say, is August is the

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Speaker 1: deadline to qualify for the September debates. Only nine have

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Speaker 1: qualified so far, and a lot of them are not

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Speaker 1: going to qualify. We're not going to see twenty candidates again,

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Speaker 1: So I'm curious if this is gonna be a breaking

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Speaker 1: point for some of these candidates to drop out. We

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Speaker 1: just saw John hicken Looper, the former Colorado governor, drop out.

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Speaker 1: Meanwhile Better A. Rourke doubled doubling down saying he won't

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Speaker 1: drop out. But there's a lot of people in between

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Speaker 1: there that that if if they're not able to qualify

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Speaker 1: for the debates, are they going to raise enough money

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Speaker 1: to even sustain an operation? Before we before we before

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Speaker 1: we let Tyler go. I want to get Tyler's response

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Speaker 1: to President Trump speaking last night in Manchester, New Hampshire

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Speaker 1: about how he sees the democratic field. Take a listen

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Speaker 1: to President Trump, and now we have a group of

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Speaker 1: socialists or communists could be quickly, they're not far away. Sorry.

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Speaker 1: So what I think there, and this is something that

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Speaker 1: has come up a lot in this Democratic primary is

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Speaker 1: us is the term socialist. And the thing about it

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Speaker 1: is you have someone like Bernie Sanders, who is a

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Speaker 1: self described Democratic socialist. But at the same time you

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Speaker 1: have people like people put Edge who have said, or

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Speaker 1: you have people like John Delaney criticizing socialism in the

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Speaker 1: Democratic Party moving too far to the left. But in

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Speaker 1: the second debate you heard say something I thought that

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Speaker 1: was interesting, and he said, any policy that the Democrats

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Speaker 1: put forward, the Republicans will will term socialism, no matter

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Speaker 1: if it's all the way to the left of Medicare

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Speaker 1: for all, or if it's something like Obamacare, which is

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Speaker 1: more progressive, but but not as as as progressive as

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Speaker 1: as Medicare for all. So I think the Democrats are

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Speaker 1: struggling to a certain extent with trying to get around

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Speaker 1: Trump calling them socialists, because whatever they say, it seems

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Speaker 1: that Republicans of certain will call them social what's in

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Speaker 1: a name? Coming up? More politics and policy, Tyler, thank

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Speaker 1: you for coming on, give us the latest of your report,

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Speaker 1: and good luck out there in Iowa. Tell us everything Uh,

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Speaker 1: panel stays, Pedro Da Costa, Matt Brooks. You can download

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

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Speaker 1: dot com, or by downloading the Bloomberg Business App. You

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Speaker 1: can also find us on Radio dot Com, I Heart

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Speaker 1: Radio and Spotify. I'm Kevin Serelli. Coming up next, we

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Speaker 1: pivot to US China trade policy. You're listening to Bloomberg.

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Speaker 1: This is Bloomberg Sound On with Kevin Shirley on Bloomberg

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Speaker 1: and one oh five point seven f M h D two.

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Speaker 1: If companies don't want to pay a tara, I have

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Speaker 1: one simple solution. Come make your product in America. Come

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Speaker 1: make your product in New Hampshire. Zero taras, zero zero,

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Speaker 1: no tara. President Trump folks last night in Manchester, New

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Speaker 1: Hampshire talking about the US China trade policies. He's been

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Speaker 1: criticized not just from the left but from the right

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Speaker 1: in terms of how he's negotiating with the Chinese. What

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Speaker 1: a wild week on Wall Street it was. We've got

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Speaker 1: all the fresh new details. By the way, the U

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Speaker 1: S stocks rose for a second day as investors got

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Speaker 1: a reprieve from trade posturing, and speculation mounted that European

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Speaker 1: officials will bolster stimulus if growth and the region continues

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Speaker 1: to sputter. That, of course, is based upon my colleagues

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Speaker 1: reporting on the Bloomberg terminal. We're talking so much about

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Speaker 1: US and China, but it does bear repeating that Europe.

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Speaker 1: Europe is arguably one of the biggest unknown factors in

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Speaker 1: all of the volatility and the global economic potential, maybe

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Speaker 1: for recession risk. I'm Kevin Cirelli, Chief Washington correspondent from

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Speaker 1: Bloomberg TV, Bloomberg Radio. Map Brooks is here. He's the

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Speaker 1: Republican strategist. He has also the executive director of the

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Speaker 1: Republican Jewish Coalition. Pedro da Costa is here. He is

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Speaker 1: the director of communications at the Economic Policy Institute. All

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Speaker 1: joking aside, he is really widely respected in the financial

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Speaker 1: services journalism field. He previously worked at The Wall Street

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Speaker 1: Journal and Forbes Reuters. I apologize and now you have

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Speaker 1: a column with with with with Forbes, But everything he

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Speaker 1: writes truthfully, I'm not blowing smoke here, folks. When I

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Speaker 1: was coming up as a cup reporter at The Hill

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Speaker 1: and Politico, you had to read Pedro. He was the marker.

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Speaker 1: So we're thrilled to have him here. Hopefully he'll come

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Speaker 1: back two kinds and we'll start well, yeah, now watch

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Speaker 1: I'm just kidding, am I I want to but I

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Speaker 1: want to start with this because the president, we just

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Speaker 1: heard from him last night, how he's talking about tariffs

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Speaker 1: out on the campaign trail. Several candidates Bernie Sanders, Elizabeth

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Speaker 1: Warren would likely utilize tariffs and trade negotiations, but there

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Speaker 1: seems to be a lot of uncertainty about where all

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Speaker 1: of this is headed. Indeed so, and the uncertainty comes

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Speaker 1: in part from the fact that trade policy is being

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Speaker 1: conducted not strategically, but it's conducted being conducted apparently ad

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Speaker 1: idea that, uh, the markets finally come around to the

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Speaker 1: fairly obvious notion that Trump is actually the an erratic

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Speaker 1: and that therefore it is all just bluster. There was

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Speaker 1: global coalition to go against China's you know, widely seen

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Speaker 1: as unfair trading practices that probably have hurt American jobs,

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Speaker 1: have hurt American manufacturing. Instead, he alienated all of our allies,

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Speaker 1: attacked Mexico, attacked Canada, attacked NATO, attacked Europe. So by

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Speaker 1: the time he went after China, he was by himself

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Speaker 1: in this very transactional Trumpian way. And that means that

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Speaker 1: we're unlikely to get a deal, but we might get

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Speaker 1: a deal on U S, m c A in September.

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Speaker 1: We might get a deal with with Canada and Mexico

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Speaker 1: in September. This is a perfect example. Actually, and actually

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Speaker 1: this was another pivotal market moment where the market started

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Speaker 1: started to expect the recession. And this is actually very pivotal.

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Speaker 1: That happened about three or four weeks ago, and that

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Speaker 1: was the moment went to Trump via tweet and probably

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Speaker 1: unexpected to his economics team announced those random tariffs on

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Speaker 1: Mexico associated to migration flows. That really really spooked the

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Speaker 1: market because here's the place that we already have a

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Speaker 1: deal with that's being negotiated now is at the congressional,

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Speaker 1: very parliamentary congressional levels to be approved. And here the

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Speaker 1: president can just kind of throw a grenade into it

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Speaker 1: and destroy it at any time. So that means that

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Speaker 1: even if you get a deal, people don't trust that

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Speaker 1: it will last. Patri says Maparo said that that the

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Speaker 1: President has alienated U S allies. I want to play

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Speaker 1: for you what he had to say last night in Manchester,

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Speaker 1: New Hampshire, where he talked about the EU. Take a

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Speaker 1: listen to President Trump. Uh last night. They actually say,

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Speaker 1: go to China, take off the tariffs naked deal. I

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Speaker 1: lose all the cards. We take off the tarrifs. We

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Speaker 1: don't have any cards. Think of it. I say, go

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Speaker 1: to Europe. By the way, the European Union is worse

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Speaker 1: than China, just smaller. It treats US horribly barriers, tariffs, taxes,

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Speaker 1: and we let them come in. So it's almost like

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Speaker 1: a game of chicken at this point, is it not?

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Speaker 1: Matt Well, I think it's. Look. I think that there's

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Speaker 1: a couple different factors here. There's the policy implications and

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Speaker 1: the policy agenda, and I think the President is absolutely

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Speaker 1: right that we need to uh engage in trade agreements

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Speaker 1: that really are equal and beneficial and fair for all

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Speaker 1: of the parties involved. And there's no question that you know,

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Speaker 1: China in particular has been running rough shot, whether it's

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Speaker 1: uh you know, with the US for decades now. And

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Speaker 1: I think that uh, you know, one of the things

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Speaker 1: to pick up on Pedro's point that I think is

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Speaker 1: absolutely gonna be critical and I'm not convinced the Democrats

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Speaker 1: and Nancy Pelosi you're gonna let the president get a

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Speaker 1: win on this, but it is to be passing the U. S.

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Speaker 1: M c A UM that it is an incredible uh

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Speaker 1: you know, the thing that should be the next step

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Speaker 1: that should be bipartisan. But I don't think that they're

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Speaker 1: prepared to give the president a win, and that's unfortunate.

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Speaker 1: But again, that's the broader thing that I wanted to

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Speaker 1: the point that I wanted to make that everything that

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Speaker 1: you're hearing now and seeing now is done through the

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Speaker 1: prism of politics, and you know, much of the same

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Speaker 1: way that the president ran in. There is an angry

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Speaker 1: electorate out there who thinks America is getting a raw

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Speaker 1: deal all around the world. And Donald Trump, to his

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Speaker 1: credit taps into that and understands that and resonates. I mean,

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Speaker 1: I was listening to interviews from farmers in Iowa who

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Speaker 1: for uh the last week, and they were all talking, Yeah,

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Speaker 1: we're not doing as well, but you know, they understand

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Speaker 1: that they've got to pay the short term price for

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Speaker 1: for President Trump to be able to have the leverage

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Speaker 1: to push back on training. They're willing to take uh,

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Speaker 1: short term pain in order to to end what they

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Speaker 1: view is is multi decades of US getting taken advantage

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Speaker 1: of it. And there's no question, uh, as you heard

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Speaker 1: in New Hampshire and you're hearing all the presidents really

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Speaker 1: that he taps in to that. And coming up, we're

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Speaker 1: gonna talk more about just this wild week in the

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Speaker 1: markets because the President held a uh previously they were well,

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Speaker 1: he had a call with some of the top CEOs

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Speaker 1: on the banking industry this week, and I definitely want

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Speaker 1: to get Pagre's take on that. We're also going to

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Speaker 1: talk about US is rarely policy. There were some new

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Speaker 1: developments on that front as well. Matt Brooks stays, Pedro

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Speaker 1: at Acosta stays. You can download Bloomberg Sound on podcast

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Speaker 1: on Apple iTunes Bloomberg dot com or by downloading the

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Speaker 1: Bloomberg Business app. You can also find me on Radio

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Speaker 1: dot com, I Heart Radio and Spotify. I'm Kevin Serelli.

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Speaker 1: Happy early birthday to Mrs c Arelli. You're listening to Bloomberg.

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Speaker 1: This is Bloomberg's Sound On with Kevin Surrele on Bloomberg

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Speaker 1: and one oh five point seven FM h D two

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Speaker 1: Wild Red Ball Street and we made It's a Friday.

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Speaker 1: I'm Kevin Cereli, Chief Washington correspondent with Bloomberg Television, Bloomberg Radio.

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Speaker 1: There's a song, the Summer Song. There we are. I'm

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Speaker 1: gonna be on the Acela actually later tonight, heading back

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Speaker 1: to Delco outside of Philly, where I grew up to

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Speaker 1: celebrate Chickie Cirilli's birthday. My good old mom, not my

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Speaker 1: old mom, my mom, it's her birthday. Stumbling already, let's

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Speaker 1: move on here with me in studio Matt Brooks, Republican strategist,

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Speaker 1: Executive director of the Republican Jewish Coalition, pedro Da Costa,

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Speaker 1: director of communications at the Economic Policy Institute. All right,

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Speaker 1: did you see this that President Trump held a conference

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Speaker 1: called Wednesday amid the plunge in the stock market with

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Speaker 1: three of Wall Street's top executives. Jamie Diamond, Brian moynihan,

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Speaker 1: City Group was on the call. Kind of not necessarily unprecedented,

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Speaker 1: but a little interesting that he he gets that the

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Speaker 1: the CEOs of the banks on the line when the

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Speaker 1: markets are plunging. So during the crisis, we used to

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Speaker 1: have that, We used to joke about the plunge protection team,

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Speaker 1: and this definitely sounds like what you know, Donald Trump

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Speaker 1: was trying to gather upon who was the protection team

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Speaker 1: back into at various times. I guess it was like

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Speaker 1: the front that it was basically Tim Geitner and Hank Paulson,

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Speaker 1: Ben Burnanky, I guess we're the ultimate ones, basically the

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Speaker 1: people who were leading the charge as far as figuring

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Speaker 1: out both the monetary policy side of things and what

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Speaker 1: the Treasury was going to do as far as bank capitalization.

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Speaker 1: But I think to me, it's it's it's a sign

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Speaker 1: of a little bit of a sign of desperation. It's

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Speaker 1: not great for the president to be calling bank ceo

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Speaker 1: is because of a market drop. Maybe he wanted to

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Speaker 1: get from them sort of better insight as to what's

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Speaker 1: going on, But I don't think so generally on Wall Street,

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Speaker 1: when you hear that the President or Steve Manuchin has

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Speaker 1: had a call during the type of market turmoil, it's

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Speaker 1: not something that generally reassured. Moynihan is on Bloomberg Television

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Speaker 1: earlier today, and I just want to keep driving this

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Speaker 1: point home, Matt, because I think sometimes in the fodder

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Speaker 1: of political journalism, uh, it gets lost. But Brian moynihan

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Speaker 1: was on Bloomberg Television and he said, quote, we have

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Speaker 1: nothing to fear about a recession right now except for

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Speaker 1: the fear of a recession. End quote. I want to

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Speaker 1: say it again because it bears repeating. We have nothing

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Speaker 1: to fear about a recession right now except for the

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Speaker 1: fear of recession and quote. And it reminds me map

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Speaker 1: Brooks of what Muhammad Alarians told me earlier this week

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Speaker 1: when he was on the show. You know, I mean,

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Speaker 1: he's like the guy when it comes to this stuff, uh,

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Speaker 1: And he said, you know, let's not talk ourselves into

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Speaker 1: a recession. Let's not price ourselves into a recession. Let's

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Speaker 1: not have these guys on Wall Street try to make

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Speaker 1: money off of their being a recession. And let us

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Speaker 1: also not forget because this is something else. You gotta

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Speaker 1: watch this interview on Boomberg Television. He also said that

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Speaker 1: there are outside the turmoils being driven by issues outside

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Speaker 1: of the US. I mean, like, and I know that's

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Speaker 1: uncomfortable when you're hosting a political talk show, but Europe

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Speaker 1: is really the the unknown here. And it's not US

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Speaker 1: relationship with Europe either. I mean, it's like the structures

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Speaker 1: in Europe that the US doesn't really have anything to

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Speaker 1: do with that that factor into this. But like in

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Speaker 1: our little bit, the president is running on the economy. No,

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Speaker 1: And you're exactly right. I mean that they're the fear.

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Speaker 1: The bigger fear is not a technical fear, but it's

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Speaker 1: it's a psychological fear. And you know, you're exactly right.

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Speaker 1: Europe is just a hot mess, dumpster fire, and uh

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Speaker 1: you know, I think it's only gonna get worse, especially

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Speaker 1: with Boris Johnson and the execution of Brexit and how

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Speaker 1: that is a disruptor for everything in in uh over

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00:22:34,800 --> 00:22:39,240
Speaker 1: there as well, and and just creating volatility and uncertainty.

430
00:22:39,760 --> 00:22:42,480
Speaker 1: And as Baedro will tell you, that's the two of

431
00:22:42,520 --> 00:22:45,440
Speaker 1: the worst variables for for any kind of markets is

432
00:22:46,000 --> 00:22:48,359
Speaker 1: volatility and uncertainty. Let me pick up on this. If

433
00:22:48,359 --> 00:22:49,879
Speaker 1: you're getting in your car and your way home from

434
00:22:49,920 --> 00:22:52,000
Speaker 1: work and you're headed down to Rehobit or you're headed

435
00:22:52,000 --> 00:22:53,800
Speaker 1: down to the Jersey shore and you're trying to make

436
00:22:53,880 --> 00:22:58,560
Speaker 1: sense of all of the volatility in the market, What

437
00:22:58,960 --> 00:23:01,600
Speaker 1: in simple terms, is going on in Europe that is

438
00:23:01,640 --> 00:23:06,679
Speaker 1: causing so much uncertainty? Pedro Da Costa the expert, Absolutely easy.

439
00:23:06,760 --> 00:23:10,679
Speaker 1: So a couple of things. Germany economic growth is actually

440
00:23:11,240 --> 00:23:13,959
Speaker 1: the economy shrank at last reading. Germany is the biggest

441
00:23:13,960 --> 00:23:17,440
Speaker 1: economy in Europe. It's the leading economy, so that matters.

442
00:23:17,480 --> 00:23:21,720
Speaker 1: It's huge. Uh. The biggest fear, I would say most

443
00:23:21,760 --> 00:23:26,479
Speaker 1: recently is actually a right word turn. And in Europe,

444
00:23:26,600 --> 00:23:34,040
Speaker 1: I'm in Italian politics, I'm I'm Italian descendant myself. So

445
00:23:34,800 --> 00:23:37,280
Speaker 1: uh So basically what's happened there is that they have

446
00:23:37,400 --> 00:23:41,399
Speaker 1: a right wing prime minister who's uh very fond of

447
00:23:41,400 --> 00:23:46,520
Speaker 1: President Trump. They have very similarly anti immigrant views, and uh,

448
00:23:46,560 --> 00:23:50,119
Speaker 1: he has recently gained in popularity and called for snap elections.

449
00:23:50,640 --> 00:23:53,359
Speaker 1: This means that he might actually he for the first

450
00:23:53,400 --> 00:23:56,520
Speaker 1: time in sort of the political horizon, actually has the

451
00:23:56,600 --> 00:24:01,960
Speaker 1: chance to achieve a political majority. And his movement is

452
00:24:02,000 --> 00:24:04,720
Speaker 1: sort of the anti euro movement, so it kind of

453
00:24:05,080 --> 00:24:07,879
Speaker 1: there's an inkling of a return to the Eurozone crisis

454
00:24:07,920 --> 00:24:09,960
Speaker 1: of like, is this thing going to hold together or

455
00:24:10,040 --> 00:24:13,000
Speaker 1: not socially in existence, whether or not if the EU

456
00:24:13,160 --> 00:24:16,040
Speaker 1: is going to hold strong literally because the third largest

457
00:24:16,040 --> 00:24:19,240
Speaker 1: economy within the euro Zone, which is Italy, might have

458
00:24:19,480 --> 00:24:22,480
Speaker 1: doubts about its ongoing role. And Germany, which is not

459
00:24:22,760 --> 00:24:26,440
Speaker 1: arguing to on this is in the middle of a recession,

460
00:24:26,680 --> 00:24:28,960
Speaker 1: is not in a recession yet, but it's not looking good.

461
00:24:29,720 --> 00:24:32,720
Speaker 1: But as to your point about why stocks bounced today,

462
00:24:32,880 --> 00:24:34,720
Speaker 1: you know, the only thing that will make stocks bounce

463
00:24:34,800 --> 00:24:36,880
Speaker 1: these days is really the promise of some kind of

464
00:24:36,880 --> 00:24:40,119
Speaker 1: monetary policy action. What what what from apology? I know

465
00:24:40,119 --> 00:24:41,760
Speaker 1: I'm asking you really in the word, But what from

466
00:24:41,760 --> 00:24:45,800
Speaker 1: a policy standpoint is driving the German crisis? Uh So,

467
00:24:46,080 --> 00:24:49,680
Speaker 1: it's just general economics. So Germany is really a major

468
00:24:49,720 --> 00:24:52,719
Speaker 1: trading nation, and so I think trade wars hit them

469
00:24:52,760 --> 00:24:57,040
Speaker 1: particularly hard because they're you know, they're a large exporting economy,

470
00:24:57,080 --> 00:24:59,600
Speaker 1: so they're especially exposed to the industrial side. And that's

471
00:24:59,640 --> 00:25:02,639
Speaker 1: for a lot the uncertainty is happen. It's it's a

472
00:25:02,720 --> 00:25:05,719
Speaker 1: mess folks. The Europe is just it's a mess, all right.

473
00:25:05,760 --> 00:25:09,200
Speaker 1: Coming up, we're gonna talk us is rarely politics, as

474
00:25:09,200 --> 00:25:11,440
Speaker 1: well as lawmakers returning from a trip to Israel to

475
00:25:11,600 --> 00:25:13,840
Speaker 1: lawmakers who weren't on the trip. We're going to dive

476
00:25:13,880 --> 00:25:17,439
Speaker 1: into that as well. Ao C and or No Congress

477
00:25:17,480 --> 00:25:20,320
Speaker 1: ol Nomar. Download the Bloomberg Sound On podcast on Apple iTunes,

478
00:25:20,320 --> 00:25:22,720
Speaker 1: a Bloomberg dot Com, or by downloading the Bloomberg Business App.

479
00:25:22,720 --> 00:25:24,600
Speaker 1: You can also find me on radio dot com, I

480
00:25:24,720 --> 00:25:27,960
Speaker 1: Heart Radio, and Spotify. I'm Kevin CERELLI. You're listening to Bloomberg.

481
00:25:35,000 --> 00:25:38,439
Speaker 1: You're listening to Bloomberg Sound On with Kevin Surreley on

482
00:25:38,560 --> 00:25:42,000
Speaker 1: Bloomberg and one oh five point seven f M h

483
00:25:42,160 --> 00:25:46,960
Speaker 1: D two. Happy Friday, folks. It's here. It's here. I'm

484
00:25:47,040 --> 00:25:51,000
Speaker 1: Kevin Cirelli, Chief Washington correspondent for Bloomberg Television Bloomberg Radio.

485
00:25:51,080 --> 00:25:54,080
Speaker 1: This has become, truthfully one of my favorite segments that

486
00:25:54,119 --> 00:25:56,600
Speaker 1: we do on the show. On my Radar we're calling

487
00:25:56,640 --> 00:25:59,640
Speaker 1: it or on the Radar, something about radar, And it's

488
00:25:59,680 --> 00:26:03,600
Speaker 1: where I ask our esteem panelist something that they're watching,

489
00:26:03,680 --> 00:26:05,520
Speaker 1: that they're keeping an eye on, or that they want

490
00:26:05,520 --> 00:26:09,000
Speaker 1: to get off their chest. Matt Brooks is here, Republican strategist,

491
00:26:09,080 --> 00:26:12,800
Speaker 1: executive director of the Republican Jewish Coalition, and Pedro da Costa.

492
00:26:12,960 --> 00:26:15,480
Speaker 1: Pedro has been great having Hopefully you'll come back. Let's

493
00:26:15,480 --> 00:26:18,640
Speaker 1: see how this segment goes. Director of Communications at the

494
00:26:18,680 --> 00:26:23,800
Speaker 1: Economic Loving You know, we picked the music. This is

495
00:26:23,840 --> 00:26:26,439
Speaker 1: actually like there. I'm very hands on in terms of

496
00:26:26,480 --> 00:26:29,960
Speaker 1: how the music is on the show the Economic Policy Institute.

497
00:26:30,000 --> 00:26:32,840
Speaker 1: He previously has Colmic Forbes, and he also previously was

498
00:26:32,880 --> 00:26:37,000
Speaker 1: with Reuter's and of course the Wall Street Journal. Matt Brooks,

499
00:26:37,000 --> 00:26:39,720
Speaker 1: we were chatting over this a little bit above and

500
00:26:39,800 --> 00:26:42,359
Speaker 1: Pops a great place to get a hog here in

501
00:26:42,520 --> 00:26:45,639
Speaker 1: the city of Philly. HOGI just about all of the

502
00:26:45,680 --> 00:26:49,760
Speaker 1: travel with the lawmakers heading to Israel, and now the

503
00:26:49,840 --> 00:26:53,800
Speaker 1: latest in the news, Congresswoman Salib is still in this

504
00:26:53,960 --> 00:26:57,720
Speaker 1: back and forth with Prime Minister Yahoo. Now I think, look,

505
00:26:57,800 --> 00:27:01,520
Speaker 1: this is a critically important issue. The the fact of

506
00:27:01,560 --> 00:27:05,200
Speaker 1: the matter is that, um, you know, there's a lot

507
00:27:05,200 --> 00:27:09,359
Speaker 1: of misinformation and attacks against the Prime Minister in the

508
00:27:09,359 --> 00:27:12,480
Speaker 1: State of Israel for not allowing Rashida to leave and

509
00:27:12,480 --> 00:27:15,880
Speaker 1: and elon Omar to come into the country. And those

510
00:27:15,880 --> 00:27:19,919
Speaker 1: are the two freshman congresswomen too, freshman congresswoman. And I

511
00:27:19,960 --> 00:27:21,720
Speaker 1: can tell you that this was not a decision that

512
00:27:21,800 --> 00:27:24,160
Speaker 1: was made lightly. I can also tell you there were

513
00:27:24,200 --> 00:27:28,000
Speaker 1: no uh good choices, the choice being to let them

514
00:27:28,000 --> 00:27:32,120
Speaker 1: in or uh to uh to to bar them from

515
00:27:32,160 --> 00:27:34,320
Speaker 1: coming into the country. And I think at the end

516
00:27:34,359 --> 00:27:36,760
Speaker 1: of the day, the Prime Minister did the reasonable thing

517
00:27:37,320 --> 00:27:40,840
Speaker 1: when it became clear after the Israeli government in the

518
00:27:40,920 --> 00:27:43,960
Speaker 1: last forty eight hours had seen the proposed agenda that

519
00:27:44,000 --> 00:27:49,040
Speaker 1: they had put together, uh, I think he realized that uh,

520
00:27:49,200 --> 00:27:51,199
Speaker 1: there was no intent to come in good faith on

521
00:27:51,200 --> 00:27:53,600
Speaker 1: this trip. They were not coming to learn and to

522
00:27:53,680 --> 00:27:56,000
Speaker 1: have an open mind, but rather if you look at

523
00:27:56,000 --> 00:27:58,760
Speaker 1: the agenda, there was no meetings with anyone from the

524
00:27:58,760 --> 00:28:01,560
Speaker 1: Prime Minister's office, was no meetings from anybody from the

525
00:28:01,560 --> 00:28:06,320
Speaker 1: opposition parties. There was no meetings with anybody from the

526
00:28:06,359 --> 00:28:09,760
Speaker 1: cabinet ministers. There was no meetings with anybody from any

527
00:28:09,840 --> 00:28:12,920
Speaker 1: member of Knesset. There was nobody meeting for a briefing

528
00:28:12,920 --> 00:28:15,360
Speaker 1: on military or intelligence issues or any of the other

529
00:28:15,440 --> 00:28:19,560
Speaker 1: myriad things that affect that region. Uh. They came strictly

530
00:28:19,600 --> 00:28:22,399
Speaker 1: for the purpose of using Israel as a backdrop to

531
00:28:22,440 --> 00:28:28,720
Speaker 1: promote UH their radical pro bds boycott investment sanctioned agenda,

532
00:28:28,800 --> 00:28:33,240
Speaker 1: which is economic warfare directed against Israel, and Prime Minister

533
00:28:33,480 --> 00:28:36,320
Speaker 1: net Yahoo, enacting a law that was passing, said we're

534
00:28:36,320 --> 00:28:38,880
Speaker 1: not going to allow you in. So the latest development

535
00:28:38,880 --> 00:28:41,560
Speaker 1: in the past twenty four hours, there was this firestorm

536
00:28:41,600 --> 00:28:46,400
Speaker 1: of controversy this week with Congresswoman Omar Congresswoman to Lead

537
00:28:47,240 --> 00:28:51,240
Speaker 1: for not being able to go to Israel. Then the

538
00:28:51,480 --> 00:28:57,520
Speaker 1: Israeli Interior Minister had granted a request from Congresswoman to Lead,

539
00:28:57,840 --> 00:29:02,200
Speaker 1: who wanted to go into Israel's to see her ninety

540
00:29:02,280 --> 00:29:06,880
Speaker 1: year old grandmother. So there was this request that was made.

541
00:29:07,240 --> 00:29:12,120
Speaker 1: Is Reel accepted the request, and Congresswomen to Lead decline

542
00:29:12,240 --> 00:29:16,240
Speaker 1: the invitation to go visit the ninety nine year old grandmother.

543
00:29:16,680 --> 00:29:19,680
Speaker 1: She tweeted, quote silencing me and treating me like a

544
00:29:19,720 --> 00:29:22,200
Speaker 1: criminal is not what she wants for me. It would

545
00:29:22,240 --> 00:29:25,320
Speaker 1: kill a piece of me. I have decided that visiting

546
00:29:25,320 --> 00:29:29,320
Speaker 1: my grandmo there under these oppressive conditions stands against everything

547
00:29:29,320 --> 00:29:32,560
Speaker 1: I believe in end quote UM don't know everything I

548
00:29:32,640 --> 00:29:35,760
Speaker 1: believe in fighting against racism, oppression, and in justice, and

549
00:29:36,040 --> 00:29:39,400
Speaker 1: quote um I don't know. I would if I could

550
00:29:39,440 --> 00:29:42,560
Speaker 1: see my late grandmother's I would I haven't drop everything

551
00:29:42,600 --> 00:29:45,240
Speaker 1: to see them. But moving on, Pedro, what's on what's

552
00:29:45,280 --> 00:29:47,160
Speaker 1: on your what's on your radar? So I wanted to

553
00:29:47,200 --> 00:29:49,400
Speaker 1: flag a report that the Economic Policy Instance you put

554
00:29:49,400 --> 00:29:51,920
Speaker 1: out this week, which is an annual study that we

555
00:29:52,000 --> 00:29:55,440
Speaker 1: do so EPI focuses a lot on inequality, which of

556
00:29:55,440 --> 00:29:58,680
Speaker 1: course is an important political issue these days, and uh,

557
00:29:59,160 --> 00:30:01,400
Speaker 1: it's important even outside of politics. I mean, this is

558
00:30:01,400 --> 00:30:03,040
Speaker 1: something every time I go back to Dako, they're like

559
00:30:03,280 --> 00:30:05,320
Speaker 1: they want to know, like, why why is it that

560
00:30:05,320 --> 00:30:07,800
Speaker 1: that these people make this money? And what not gonna exactly?

561
00:30:07,840 --> 00:30:09,840
Speaker 1: And so I work. A lot of our work focuses

562
00:30:09,880 --> 00:30:12,400
Speaker 1: on the decline of unions and worker bargaining power in

563
00:30:12,440 --> 00:30:14,720
Speaker 1: the role sort of that that has had in keeping

564
00:30:14,720 --> 00:30:17,560
Speaker 1: wages at the bottom week. But the report that we've

565
00:30:17,640 --> 00:30:19,400
Speaker 1: we've put out this week is actually focused at the

566
00:30:19,480 --> 00:30:22,600
Speaker 1: very top and it's focused on CEO pay. Uh And

567
00:30:22,880 --> 00:30:26,000
Speaker 1: we've been putting out research on the CEO to worker

568
00:30:26,160 --> 00:30:29,960
Speaker 1: pay ratio for a long time. Uh. So the headline

569
00:30:30,520 --> 00:30:33,600
Speaker 1: of the report is that CEO compensation has surged nine

570
00:30:33,680 --> 00:30:37,800
Speaker 1: hundred and forty I repeat nine hundred and forty since

571
00:30:39,760 --> 00:30:42,600
Speaker 1: I guess how much worker compensation risen in the same

572
00:30:42,600 --> 00:30:46,080
Speaker 1: period twelve So you know what the I mean, And

573
00:30:46,080 --> 00:30:47,720
Speaker 1: you know what. I think there's something to be said

574
00:30:47,760 --> 00:30:50,720
Speaker 1: about that, absolutely, but you know what I mean, I

575
00:30:50,720 --> 00:30:54,920
Speaker 1: don't have the stat is the highest paid public employees

576
00:30:54,960 --> 00:30:57,120
Speaker 1: in any state. You know who they actually are. They're

577
00:30:57,120 --> 00:30:59,960
Speaker 1: the head coaches of college football teams and basketball teams

578
00:31:00,320 --> 00:31:03,120
Speaker 1: and that. And that is another conversation. And we always

579
00:31:03,120 --> 00:31:07,480
Speaker 1: talk and rightfully so, about transparency with regards to financial

580
00:31:07,480 --> 00:31:10,239
Speaker 1: institution and large corporations. We should have that conversation. Well,

581
00:31:10,280 --> 00:31:13,120
Speaker 1: we don't talk enough about is some of the gross

582
00:31:13,520 --> 00:31:17,719
Speaker 1: misspending of state taxpayer dollars at some of these higher

583
00:31:17,720 --> 00:31:20,160
Speaker 1: And listen, I'm a Penn Stater. I love Penn State,

584
00:31:20,360 --> 00:31:22,680
Speaker 1: but I also covered the Jerry Sandusky trial. And you

585
00:31:22,720 --> 00:31:26,320
Speaker 1: see how that type of money can corrupt thing. That's

586
00:31:26,320 --> 00:31:28,520
Speaker 1: on my radar. How's that for a piv it on

587
00:31:28,600 --> 00:31:31,440
Speaker 1: my radar? Green did you guys see this? Greenland? The

588
00:31:31,480 --> 00:31:34,080
Speaker 1: Wall Street Journal where you used to write, they came

589
00:31:34,080 --> 00:31:36,560
Speaker 1: out with this report. I mean, I was, you know,

590
00:31:36,720 --> 00:31:41,000
Speaker 1: winding down yesterday all of a sudden, Uh, it's like

591
00:31:41,040 --> 00:31:43,840
Speaker 1: four byelines they got they go President Trump made his

592
00:31:43,960 --> 00:31:47,120
Speaker 1: name on the world's most most famous island. Now he

593
00:31:47,160 --> 00:31:50,560
Speaker 1: wants to buy the world's biggest. Uh. He wants to

594
00:31:50,640 --> 00:31:54,320
Speaker 1: purchase Greenland, according to The Wall Street Journal, and Greenland

595
00:31:54,320 --> 00:31:57,520
Speaker 1: has said no, tel they're not interested talk about that

596
00:31:57,560 --> 00:31:59,800
Speaker 1: for a meeting. They're actually the head of Greenland and

597
00:32:00,000 --> 00:32:02,960
Speaker 1: President Trump. They're gonna meet in September. I mean, are

598
00:32:03,000 --> 00:32:05,240
Speaker 1: we really gonna I mean, yes or no? Yes or no.

599
00:32:05,320 --> 00:32:07,120
Speaker 1: By the time President Trump leaves off is when we

600
00:32:07,160 --> 00:32:12,600
Speaker 1: have the next Greenland Matt Brooks No, uh no, But

601
00:32:12,720 --> 00:32:15,680
Speaker 1: I think he has his eyes on Arctic oil exploration.

602
00:32:15,760 --> 00:32:20,000
Speaker 1: I don't think it's a totally idea as you think.

603
00:32:20,080 --> 00:32:23,440
Speaker 1: I don't think it's I mean, I think it's nutty

604
00:32:23,480 --> 00:32:25,720
Speaker 1: because it's going to destroy the Earth, but it's it's

605
00:32:25,760 --> 00:32:28,320
Speaker 1: not nutty in terms of money making. And yeah, I

606
00:32:28,360 --> 00:32:30,800
Speaker 1: think it's broader than I think it's. It's an incredibly

607
00:32:30,880 --> 00:32:36,720
Speaker 1: valuable strategic Indeed, it's a messaging because that's the point

608
00:32:36,720 --> 00:32:39,080
Speaker 1: we wanted to drive home and we just drove it,

609
00:32:39,120 --> 00:32:41,480
Speaker 1: is that this is all about energy. This is about

610
00:32:41,480 --> 00:32:43,600
Speaker 1: floating the idea that the US want to head into

611
00:32:43,600 --> 00:32:46,280
Speaker 1: that September meeting and have something to say about energy,

612
00:32:46,480 --> 00:32:48,800
Speaker 1: and look, the Wall Street Journal got a headline out

613
00:32:48,800 --> 00:32:51,080
Speaker 1: of it. I want to thank Matt Brooks, friend of

614
00:32:51,120 --> 00:32:54,080
Speaker 1: the program. Matt brought me tasty cakes. By the way, Pedro,

615
00:32:54,160 --> 00:32:58,440
Speaker 1: what did you bring me? Um that? Thanks for coming in.

616
00:32:58,480 --> 00:33:01,840
Speaker 1: Republican Strategist, executive or rector of the Republican Jewish Coalition,

617
00:33:02,000 --> 00:33:05,680
Speaker 1: Pedro da Costa, director of communications at the Economic Policy Institute.

618
00:33:05,680 --> 00:33:07,760
Speaker 1: Go check them out. And that does it for me

619
00:33:07,840 --> 00:33:10,400
Speaker 1: for today. I'm Kevin Cirilli. I'm headed back home tonight

620
00:33:10,680 --> 00:33:14,040
Speaker 1: to celebrate my mother's birthday right outside of Philadelphia. You

621
00:33:14,040 --> 00:33:17,760
Speaker 1: can download the Bloomberg Sound on podcast on Apple iTunes,

622
00:33:17,880 --> 00:33:20,720
Speaker 1: at Bloomberg dot com, or by downloading the Bloomberg Business app.

623
00:33:20,760 --> 00:33:23,040
Speaker 1: You can also find us on Radio dot com, I

624
00:33:23,160 --> 00:33:34,960
Speaker 1: Heart Radio, and Spotify. You're listening to Bloomberg one