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Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the

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Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at

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Speaker 1: noon and five pm Eastern on Apple Coarclay and Android

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Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever

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Speaker 1: you get your podcasts, or watch us live on YouTube.

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Speaker 2: Pretty good day for some golf, certainly if you're in Miami.

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Speaker 2: Happening at the Trump National Doral, Miami. The House Republican

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Speaker 2: conference on the ground Kumbai Yah, and yes, golfing to

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Speaker 2: start things off today. We expect that we will hear

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Speaker 2: from House Speaker Mike Johnson a little bit later on

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Speaker 2: three o'clock three thirty is going to have a news

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Speaker 2: conference at Dorral, the official proceedings get rolling a closed

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Speaker 2: door event with the Boss himself, Donald Trump, of course

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Speaker 2: at Dorrel about an hour's drive. I read south of

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Speaker 2: mar A Lago. But boy, what a weekend it was.

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Speaker 2: We try to unpack all of this. Donald Trump fresh

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Speaker 2: off Las Vegas. Did you see him at the craps table.

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Speaker 2: He's in Las Vegas to rally the troops as if

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Speaker 2: he were still in the campaign. And yeah, he did

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Speaker 2: show up at a casino talked about the no taxes

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Speaker 2: on tips. That's where this whole thing was born. Right

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Speaker 2: here's Donald Trump in Vegas.

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Speaker 3: I'll be working with Congress to get a bill on

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Speaker 3: my desk that cuts taxes for workers, family, small businesses,

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Speaker 3: said very importantly, keeps my promise for a thing.

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Speaker 4: Cook And I know you didn't hear anything.

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Speaker 2: About this, and I'm sure it had no influence on

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Speaker 2: the state.

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Speaker 4: But I'm sure you haven't heard.

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Speaker 2: But we're going to get it for you. No tax on,

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Speaker 2: no tax subcack of it. They loved it so much.

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Speaker 2: Remember even Kamala Harris picked that one up. And it

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Speaker 2: is potentially complicating matters for those lawmakers who are tasked

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Speaker 2: with extending the Trump tax cuts. This is just scratching

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Speaker 2: the surface on what we need to cover. With Laura Davison,

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Speaker 2: she's with us now, off a very busy weekend. Great

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Speaker 2: to see you. Your team must be breathless here. We

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Speaker 2: all said the same thing at the end of last week.

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Speaker 2: Are we going to this is the new normal again?

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Speaker 2: We're going to do this every week.

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Speaker 5: There is no slowing down, just to keep them tablism high,

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Speaker 5: and it'll keep flowing.

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Speaker 6: Well.

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Speaker 2: So the arc of the weekend was incredible. It started

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Speaker 2: with what they're calling the Friday Night massacre parkening back

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Speaker 2: to Richard Nixon, Donald Trump firing the inspectors general. This

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Speaker 2: is a long list at the Departments of Defense, State, Transportation, Veterans, Affairs,

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Speaker 2: Housing and Urban Development, Interior, Energy, Commerce, and Agriculture, as

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Speaker 2: well as the EPA, the SBA, and the Social Security Administration.

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Speaker 2: That's a pretty broad swath of government. What's the point,

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Speaker 2: Why what is he doing here?

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Speaker 5: And I'll note this also includes some people that he

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Speaker 5: appointed to these positions when he was in office, But

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Speaker 5: the inspector general, these are really the people. They're typically

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Speaker 5: not well liked within their agency because they're the auditors

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Speaker 5: that are looking to, you know, find holes an efficiency,

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Speaker 5: you know, where things programs that aren't effective, where there

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Speaker 5: may be gaps in funding and that the money's not

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Speaker 5: being wisely spent.

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Speaker 7: Although this is an interesting.

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Speaker 5: Move for you know, someone who has had Elon Musk

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Speaker 5: at his right hand side saying he wants to root out,

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Speaker 5: you know, wasteful spending and all these things, it's the

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Speaker 5: igs who actually go and find all of that.

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Speaker 7: That would be sort of list number one and where

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Speaker 7: you want to go.

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Speaker 5: But this is clear that he wants to have all

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Speaker 5: the people who are you know, doing this kind of

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Speaker 5: work be loyalist, be in locksed up with him. This

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Speaker 5: he said, this was something that normally happens. I'll just

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Speaker 5: know that this is not a normal thing. Generally, these

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Speaker 5: people span administrations and do not you know, do not

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Speaker 5: come and go.

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Speaker 2: So this is the so called deep state. I guess

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Speaker 2: he's trying to get out to your point though, these

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Speaker 2: are some of his own appointees, and he failed to

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Speaker 2: notify Congress. You have to give him thirty days or

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Speaker 2: something on that. Does that matter or does nothing matter?

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Speaker 8: You know?

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Speaker 5: And with all of these, you know, there are already

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Speaker 5: been some questions raised about you know, the legality of this.

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Speaker 7: Could this be challenged?

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Speaker 5: But you know, with the fire hose of everything that's

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Speaker 5: coming in, you know that both the administration as well

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Speaker 5: as sort of folks who are filing lawsuits challenging some

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Speaker 5: of these moves, they have to prioritize. They can't fight

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Speaker 5: everything tooth and nail.

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Speaker 2: Okay, So we move on to the law loyalty tests

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Speaker 2: also happening now about one hundred and sixty staffers from

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Speaker 2: the National Security Council were sent home and they're calming

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Speaker 2: through I guess their social media prior statements. What are

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Speaker 2: they looking for?

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Speaker 5: Basically looking for anyone who may have criticized Donald Trump

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Speaker 5: a job and they are likely out of the job.

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Speaker 7: I mean, these are folks, These are civil servants.

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Speaker 5: These are not political folks, even though they work for

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Speaker 5: the National Security Council. They were sent home on Wednesday.

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Speaker 5: They still have their things and their desks in the

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Speaker 5: White House, but they were basically informed that they would

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Speaker 5: be believing had their email access access cut off, you know,

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Speaker 5: immediately escorted out of the building. They now essentially to

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Speaker 5: come back when they when they go to pick up

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Speaker 5: their stuff. You know, most of them are assuming that

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Speaker 5: they will not be coming back. Employed. They are escorted

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Speaker 5: full time. It is harder for them to get on

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Speaker 5: the White House campus than it is for a foreign national.

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Speaker 2: Wow, this is you know, and by the one of

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Speaker 2: the most high profile firings the Coastguard commandant. This is

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Speaker 2: or was Admiral Linda Fagan, the first woman to lead

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Speaker 2: a branch of the UA military. Is that a good

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Speaker 2: look for the administration.

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Speaker 5: Not particularly I don't know exactly on the reasons behind

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Speaker 5: this one. But this is kind of what you see

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Speaker 5: you know, Trump doing. You know, he wait wait until

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Speaker 5: Friday night to announce a lot of these and these

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Speaker 5: were so this is he is clearly looking at, you know,

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Speaker 5: both the federal workforce as well sort of this upper

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Speaker 5: echelon of management and people he wants to install his

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Speaker 5: own people or you know, force people to leave.

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Speaker 2: Amazing accused of an excessive focus on DEI at the

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Speaker 2: Coast Guard Academy. Your point is you're probably not going

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Speaker 2: to survive the scrub. If you've got shown the door

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Speaker 2: for a loyalty test, you're probably not coming back.

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Speaker 5: That's very i mean very very likely, you know, and

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Speaker 5: a lot of times they already have people who they

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Speaker 5: sort of identified to fill some of these backfiells on

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Speaker 5: the lease slots. You know, I'll know that the Trump

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Speaker 5: incoming Trump team is way more organized than they were

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Speaker 5: the last time.

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Speaker 7: There's still you know, been a lot of the kind

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Speaker 7: of that first week.

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Speaker 5: You know, a lot of staffers didn't have emails, so

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Speaker 5: there's a lot of confusion as to exactly what's happening.

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Speaker 5: But there is a plan and kind of you know,

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Speaker 5: as as more people get appointed, get their Senate confirmation.

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Speaker 5: These are kind of being triggled down throughout the reverr.

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Speaker 2: This place well with Trump supporters though right Drain the swamp.

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Speaker 2: That's what it looks like.

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Speaker 7: Absolutely.

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Speaker 5: The real question, though, is if you suddenly start cutting

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Speaker 5: programs for things like food stamps or certain farm aid

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Speaker 5: programs or things that affect.

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Speaker 2: People, bump into somebody, you know.

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Speaker 7: Out in the community.

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Speaker 5: That's when people might sort of realize, oh, I was

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Speaker 5: counting on that subsidy, or I was counting on that payment.

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Speaker 5: And you know, there's a constituency for essentially every program

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Speaker 5: in the federal government.

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Speaker 7: That's why it exists.

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Speaker 5: And you know when you start cutting things, that's when

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Speaker 5: the rubber meets the road.

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Speaker 2: As we spend time with Laura Davison here on Balance

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Speaker 2: of Power, we almost had a trade war yesterday. Who

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Speaker 2: lasted for a couple hours. Maybe we did have a

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Speaker 2: trade war. Maybe it was the shortest trade war of

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Speaker 2: all time, Columbia. We stepped back from the brink. I

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Speaker 2: saw an email go out around eleven o'clock last night.

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Speaker 2: They got this done in time for business on Monday.

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Speaker 2: What started this to bring Donald Trump to threaten to

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Speaker 2: twenty five percent tariff against Columbia because they've been intercepting

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Speaker 2: these flights of my from the US and that seemed

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Speaker 2: to be working well until now this.

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Speaker 5: Yeah, so the Columbia government said that they would not

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Speaker 5: accept this military plane that was coming with migrants, and

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Speaker 5: they were both shackled at their ankles as well.

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Speaker 7: As handcuffed on their hands, and they really objected.

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Speaker 2: To the fact that it was military.

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Speaker 7: Was the and it was sort of a confluence of

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Speaker 7: the military.

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Speaker 5: They also in some of the statements that came out later,

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Speaker 5: it was clear that they were concerned about sort of

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Speaker 5: dignity human rights around the treatment of their own citizens

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Speaker 5: coming back. So that was sort of the points of

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Speaker 5: negotiation throughout the day. But this is really going to

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Speaker 5: be instructive on how Trump is thinking about tariffs. He said, look,

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Speaker 5: you know, this country did this thing.

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Speaker 7: I didn't like.

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Speaker 5: They refused these flights that I want to go. So

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Speaker 5: I'm going to come out and announce a tariff, you know,

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Speaker 5: effective immediately twenty five percent, and out additional sanctions and

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Speaker 5: travel restrictions for the country's diplomats.

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Speaker 7: And then Columbia was.

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Speaker 5: Forced to immediately respond because a twenty five percent tariff

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Speaker 5: on anything coming into the US would have been a

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Speaker 5: really big deal for them, and with an amount of

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Speaker 5: matter of five six, seven hours, they were able to

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Speaker 5: come to some sort of resolution that both the Columbian

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Speaker 5: government was happy with and Trump was happy with, at

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Speaker 5: least for the time being. We'll see if this drops up.

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Speaker 5: But this is really the question as everyone's looking towards

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Speaker 5: February one, which of course is the date that Trump

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Speaker 5: has said he wants to impose tariffs on Mexico, China

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Speaker 5: or sorry, Mexico, Canada and maybe China.

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Speaker 7: We'll see where that lands.

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Speaker 5: And you know that's six days away, that's Saturday, So

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Speaker 5: it's unclear if the terrifts are actually coming or if

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Speaker 5: that's really more of a starting point for negotiation.

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Speaker 2: Yes. Yeah, that's a nice looking economy. You got there

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Speaker 2: be a shamed of something happened to it. We haven't

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Speaker 2: even talked about deep seek. We have a minute left.

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Speaker 2: This is the story of the day at Bloomberg. The

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Speaker 2: markets are falling out of bed over this, and Donald

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Speaker 2: Trump at some point is going to have to respond.

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Speaker 2: I suspect, unless you're gonna tell me he has already

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Speaker 2: considering the TikTok divest or ban. Is this the next

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Speaker 2: app to be banned by the Trump administration?

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Speaker 7: It certainly could be.

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Speaker 5: You know, we know from all the statements last week

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Speaker 5: and the executive orders and the big press conference at

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Speaker 5: the White House that he is very focused on AI.

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Speaker 5: He says he wants to be dominant in AI. And

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Speaker 5: this is the kind of thing that Donald Trump is

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Speaker 5: very scared about that China is going to come and

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Speaker 5: sort of usurp the US's lunch. So I expect that

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Speaker 5: we will see some response from him soon if he

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Speaker 5: hasn't announced something in the past couple minutes.

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Speaker 2: Since our national security implications here potentially right if for

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Speaker 2: scooping up Americans data, it's kind of like TikTok all

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Speaker 2: over again.

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Speaker 5: But you know, with even more access to emails, access

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Speaker 5: to location data.

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Speaker 2: It's a watching Gmail and your phone number. Good lord,

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Speaker 2: And it's only noontime on a Monday. As I said,

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Speaker 2: just think of the week that Laura is going to have.

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Speaker 2: We'll go through this together with the help of Laura

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Speaker 2: and her team. Thank you as always for being with

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Speaker 2: us here on Balance of Power. I'm Joe, Matthew and Washington.

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Speaker 2: We're going to go deep on deep Seek coming up

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Speaker 2: next with an expert on AI from CSIS. We sit

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Speaker 2: down with Gregory Allen next. Only here on Bloomberg.

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Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch

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Speaker 1: us live weekdays at noon and five pm Eastern on Apple,

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Speaker 1: Cocklay and Android Auto with the Bloomberg Business App. You

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Speaker 1: can also listen live on Amazon Alexa from our flagship

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Speaker 1: New York State Just Say Alexa played Bloomberg eleven thirty.

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Speaker 2: This is a tough market, but we need to get

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Speaker 2: the facts here and we'll get back with Charlie in

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Speaker 2: a bit to see how this is evolving, hopefully not

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Speaker 2: regressing a more than six hundred and sixty point loss.

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Speaker 2: Here on the NASDAC that vis is up twenty five percent.

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Speaker 2: It's kind of all you need to know, and it

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Speaker 2: has everything to do with deep Seek, as Charlie was

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Speaker 2: just mentioning, it's where we started our day here. Everybody

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Speaker 2: woke up to this news on the terminal. How many

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Speaker 2: notifications about deep seek did you have or had you

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Speaker 2: already downloaded it? Maybe you're part of this whole story,

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Speaker 2: enter Jevins' paradox. Maybe you saw the tweet from Satya Nadella,

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Speaker 2: the CEO of Microsoft. Jevins Paradox strikes again. He writes,

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Speaker 2: as AI gets more efficient and accessible, we will see

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Speaker 2: its use skyrocket. He's defining it here, turning it into

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Speaker 2: a commodity. We just can't get enough of. Interesting and

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Speaker 2: a great place to start our conversation with Gregory Allen.

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Speaker 2: You've met Gregory before on this program. He is one

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Speaker 2: of the foremost experts on AI in the nation's capital

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Speaker 2: and in fact director of the Wadwani AI Center at CSIS,

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Speaker 2: the Center for Strategic and International Studies, former Director of

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Speaker 2: Strategy and Policy at the Department of Defense Joint Artificial

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Speaker 2: Intelligence Center. This is the guy you need to hear

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Speaker 2: from today. It's great to have you back. I can

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Speaker 2: only imagine your thoughts when you see an AI story

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Speaker 2: explode like this in the mainstream media. I've got a

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Speaker 2: lot of specific answers questions for you that hopefully you

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Speaker 2: will have answers to. But in terms of Jevins Paradox,

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Speaker 2: why does it matter here?

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Speaker 4: So? I think the stock market is looking at Deep

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Speaker 4: Seek and they're saying, oh my gosh, here is a

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Speaker 4: company who has found a way to make pretty high

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Speaker 4: quality AI much more widely available for much cheaper. So

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Speaker 4: therefore the price performance of a company like open Ai,

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Speaker 4: how are they going to justify that cost when suddenly

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Speaker 4: it's so cheap to make? And the Jevins paradox has

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Speaker 4: a really important answer to everybody who's out there shorting

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Speaker 4: in Vidia or shorting myrosoft right now. It basically says

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Speaker 4: that as something becomes cheaper, people want more of it.

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Speaker 4: So Jevins the observation actually dates back to the Industrial Revolution,

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Speaker 4: where he pointed out that steam engines are getting more

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Speaker 4: and more energy efficient, but we keep using more and

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Speaker 4: more coal because as we get more energy efficient, then

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Speaker 4: you can economically justify using coal and an application that

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Speaker 4: you couldn't before. The exact same thing is true in computing.

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Speaker 4: The cost of one flop when operation of computing has

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Speaker 4: dropped by oh, I don't know, twenty trillionfold since you know,

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Speaker 4: the nineteen fifties when we first invented computers. But are

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Speaker 4: we using more computers or we're using less computers? Are

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Speaker 4: companies making more money selling computers or less money selling computers?

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Speaker 4: The basic point here is that Microsoft is Thank goodness,

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Speaker 4: AI is so cheap because now the universe of people

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Speaker 4: who are going to want to buy it from me

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Speaker 4: just grew.

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Speaker 2: A lascinating What does this mean for the energy companies?

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Speaker 2: By the way, it's not just the Nvidios that are down,

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Speaker 2: it's the constellations and the others that we've been talking

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Speaker 2: so much about clean renewable. Is it going to be nuclear?

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Speaker 2: Will we still need expensive energy? If Jevins correct, well,

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Speaker 2: it's the exact same phenomen decline in price as well.

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Speaker 4: No, it's the exact same phenomenon just applied to the energy.

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Speaker 4: If you go back ten years, how much was data

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Speaker 4: centers as a share of the US electrical grid demand.

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Speaker 4: It was hardly anything. But at the exact same time

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Speaker 4: that computer chips got more powerful, that algorithms got more efficient,

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Speaker 4: Suddenly data centers are actually a pretty reasonable chunk of

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Speaker 4: the US grid, and now it's looking like they're going

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Speaker 4: to consume a lot more. Well. Increasing efficiency has already

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Speaker 4: been a part of that story. An Nvidia chip today

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Speaker 4: is literally ten thousand times more efficient than an Nvidia

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Speaker 4: chip a decade or two ago. And at the same

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Speaker 4: time that they're getting more efficient, at the same time

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Speaker 4: that you're using less energy per unit of computation. You're

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Speaker 4: making the economic and the business case that much more

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Speaker 4: attractive for every additional use case for that competition.

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Speaker 2: I have to bet this all sounds pretty positive in

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Speaker 2: the Grand scy So let's get to this case specifically

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Speaker 2: in y Wall Street is so freaked out Deep Seek.

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Speaker 2: We're told this happened with six million dollars in funding.

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Speaker 2: Is that possible? Is that true?

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Speaker 4: So it's which part of the story you want to say, Ok,

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Speaker 4: this specific model training run. Right, when you're training an

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Speaker 4: AI model, how much computation did you use on that

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Speaker 4: one run? Yes, that was six million dollars worth of computation.

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Speaker 4: But there's all the other model training runs that didn't work.

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Speaker 4: Right When deep seek says that's what it costs, that

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Speaker 4: didn't say their entire computing costs, for all of their

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Speaker 4: research and development, for all the work that went into

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Speaker 4: creating this model with six million dollars. They said, this

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Speaker 4: one individual training run with six million dollars. Another thing

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Speaker 4: to note here is part of the reason why everybody's

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Speaker 4: so excited is this is a model that has reasoning capabilities.

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Speaker 4: This is the advance that Opening Eye came out with

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Speaker 4: in that one series of models in September of last year. Well,

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Speaker 4: it turns out what deep seek has proved is that

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Speaker 4: upgrading a pretty decent base model think like GP, to

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Speaker 4: a reasoning model that is actually not as computationally intensive

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Speaker 4: as had been understood widely in the press. But inside

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Speaker 4: the big AI companies, opening eye Anthropic, they already knew

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Speaker 4: all of this. They were already benefiting from all of this.

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Speaker 4: Recall that Sam Altman said that three the most advanced

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Speaker 4: category of model, the one that was blowing away benchmarks.

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Speaker 4: In December of twenty twenty four, he said, the price

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Speaker 4: of giving away that model usage free, right, So costs

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Speaker 4: are coming down for everyone, not just for deep Seek.

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Speaker 4: What deep Seek is doing is replicating a series of

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Speaker 4: research that American AI companies had already been benefiting from.

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Speaker 4: They just weren't sharing it loudly and publicly.

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Speaker 2: Okay, did this company get its hands on in Vidia

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Speaker 2: chips or did it reinvent the wheel with some kind

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Speaker 2: of popcorn chip that had stacked in a way that

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Speaker 2: we've never seen before.

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Speaker 4: So according to this company, according to deep Seek, they

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Speaker 4: used in video chips all right, but they specifically used

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Speaker 4: in Vidia H eight hundred chips. So Folks who watched

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Speaker 4: the export controls debate in Washington export control policy in

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Speaker 4: Washington closely, such as myself, you may remember that in

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Speaker 4: October twenty twenty two, that's when the Biden administration launched

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Speaker 4: this AI chip restrictions export controls strategy. But they got

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Speaker 4: the performance thresholds wrong. They thought that they were saying, oh,

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Speaker 4: you have to buy two generations old of in Vidia chips.

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Speaker 4: But what in Vidia found out is actually, if we

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Speaker 4: make this one tweak to our existing best in class chips,

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Speaker 4: they're actually legal to sell. So there was a whereas

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Speaker 4: the Biden administration was under the impression that they were

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Speaker 4: putting China under like a fifty or sixty percent performance penalty,

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Speaker 4: actually they were only imposing like a ten percent performance penalty.

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Speaker 4: And there was an entire year between October twenty twenty

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Speaker 4: two and October twenty twenty three when it was illegal

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Speaker 4: to sell unlimited numbers of these eight eight hundred chips.

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Speaker 2: So this is the whole story.

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Speaker 4: This is the story they have been. Export controls have

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Speaker 4: a lagging effect. Right, It's not like you stop selling

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Speaker 4: it and everything that's already in China magically blows up. Right,

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Speaker 4: They still have what they already bought. And in this case,

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Speaker 4: we are dealing with the failure of the design of

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Speaker 4: the export control architecture of October twenty twenty two. Later

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Speaker 4: this year, we're going to start living through the success

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Speaker 4: story of the October twenty three architecture the December twenty

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Speaker 4: twenty four architecture. And it came out of the mouth

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Speaker 4: of deeps Sikh's CEO. He said, the number one challenge

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Speaker 4: my company faces is US export controls. Right when Biden

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Speaker 4: and Shijingping meet to discuss foreign policy issues time and again,

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Speaker 4: I've heard this from Biden administration officials time and again,

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Speaker 4: Shujingping changes the topic back to these export controls and

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Speaker 4: why he needs them to go away immediately. He's not

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Speaker 4: asking to get rid of them because they aren't working.

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Speaker 4: He's asking to get rid of them because they are working,

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Speaker 4: because they are imposing significant costs. Now, I don't want

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Speaker 4: to suggest that there's no legitimate technical innovation underpinning this

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Speaker 4: new Deepseek model release. There's some legitimately impressive stuff in here.

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Speaker 4: Folks who work at American AI labs are reading these papers.

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Speaker 4: They are seeing innovations they can use think about what

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Speaker 4: advantages America can secure that are durable and hard to replicate,

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Speaker 4: and what advantages China can secure that are durable and

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Speaker 4: hard to replicate. All of the algorithmic innovation, all of

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Speaker 4: the architectural innovation that is represented in this deep Seak model,

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Speaker 4: one percent of it is available to American a companies.

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Speaker 4: They get to copy any new innovation. By contrast, all

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Speaker 4: the computational advantages that American companies have, Chinese companies can't

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Speaker 4: copy that because they can't make the chips fascinating.

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Speaker 2: So I'm listening to you and I'm I'm amazed by

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Speaker 2: everything you're telling me, and I'm wondering why all these

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Speaker 2: stocks are down today well and making the case to

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Speaker 2: buy a video.

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Speaker 4: Well, I would say, in the long term, the stock

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Speaker 4: market is based on truth, but in the short term

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Speaker 4: sometimes it's based on vibes. And the vibes pretty.

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Speaker 2: Much today is what's going on.

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Speaker 4: That would be my strong impression.

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Speaker 2: I mean, this isn't Blackwell we're talking about, it's not

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Speaker 2: Ruben we're talking about.

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Speaker 4: Right, We're talking about deep Seat and it's it's legitimately

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Speaker 4: important right there. This is an update in what people

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Speaker 4: think is possible. But it's an update that folks who

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Speaker 4: have been living in the AI industry are familiar with.

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Speaker 4: Right right now, we're living in the world of GPT

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Speaker 4: four is the base model. One is the sort of

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Speaker 4: reasoning model updates. But I remember when GPT two came

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Speaker 4: out and it was trained on a supercomputer, and now

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Speaker 4: it runs on my laptop. And I remember when GPT

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Speaker 4: three came out and it was trained on a supercomputer,

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Speaker 4: and now it runs on my laptop. So the point

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Speaker 4: is here, there is no real update in paradigm. Computers

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Speaker 4: start in supercomputers and they end up in personal devices,

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Speaker 4: and that has been the trend literally since Alan Turning

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Speaker 4: invented the first computer during World War Two. It gets faster, smaller, cheaper.

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Speaker 4: But at the same time you have to ask yourself

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Speaker 4: what kind of durable competitive advantages can we create? And

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Speaker 4: I think it's worth pointing out that we are on

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Speaker 4: the cusp of a threshold. Right Sam Altman himself last

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Speaker 4: year early last year said that the performance of his

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Speaker 4: model was quote mildly embarrassing at best, and he had

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Speaker 4: the best one in the world. But the point is

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Speaker 4: we are maybe a year year away, maybe a handful

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Speaker 4: of years away. From AI models being able to perform

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Speaker 4: so many different tasks in the global economy, and in

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Speaker 4: some cases being able to do so at better than

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Speaker 4: world expert levels. So we are approaching this threshold when

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Speaker 4: AI will go from useful for some things, fun for

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Speaker 4: some things, to shockingly useful at so many things. And

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Speaker 4: the companies and the countries that crossed that threshold first

438
00:20:29,640 --> 00:20:32,240
Speaker 4: are going to have an extraordinary first mover advantage.

439
00:20:32,280 --> 00:20:34,240
Speaker 2: That's not what we're talking about here, though we're out

440
00:20:34,280 --> 00:20:34,560
Speaker 2: of time.

441
00:20:34,560 --> 00:20:36,040
Speaker 4: Basically, this is all we got to talk about.

442
00:20:36,040 --> 00:20:38,280
Speaker 2: One more things, well, forty five seconds, go for it.

443
00:20:38,400 --> 00:20:43,000
Speaker 4: Deepseek is having major outages right now. They have attracted

444
00:20:43,000 --> 00:20:44,879
Speaker 4: a lot of attention, They've got a lot of new

445
00:20:44,960 --> 00:20:48,159
Speaker 4: users being attacked. They are not being attacked. They have

446
00:20:48,240 --> 00:20:50,520
Speaker 4: run out of chips. It is the exact same story

447
00:20:50,880 --> 00:20:54,280
Speaker 4: as when Gina Romando went to China in mid twenty

448
00:20:54,320 --> 00:20:57,680
Speaker 4: twenty four and they said that Huawe had a new phone,

449
00:20:57,680 --> 00:20:59,760
Speaker 4: but they couldn't make enough chips for them. Now they

450
00:20:59,760 --> 00:21:01,800
Speaker 4: don't have enough chips to run the data centers to

451
00:21:01,880 --> 00:21:03,640
Speaker 4: serve the users who want to use deep Seek.

452
00:21:04,640 --> 00:21:05,800
Speaker 2: While way two point zero.

453
00:21:05,720 --> 00:21:07,439
Speaker 4: Here, it's a very similar repeat of the.

454
00:21:07,400 --> 00:21:10,240
Speaker 2: Story amazing, aren't you glad? We had Gregory back with

455
00:21:10,320 --> 00:21:14,840
Speaker 2: us today on Balance of Power. Fantastic csis. He's the

456
00:21:14,880 --> 00:21:17,280
Speaker 2: mind you want to talk to and hear from today

457
00:21:17,320 --> 00:21:18,000
Speaker 2: on Bloomberg.

458
00:21:21,400 --> 00:21:24,880
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch

459
00:21:24,920 --> 00:21:27,920
Speaker 1: us live weekdays at noon and five pm Eastern on

460
00:21:28,080 --> 00:21:31,320
Speaker 1: Apple Cockley and Android Auto with the Bloomberg Business App.

461
00:21:31,520 --> 00:21:34,720
Speaker 1: Listen on demand wherever you get your podcasts, or watch

462
00:21:34,840 --> 00:21:37,280
Speaker 1: us live on YouTube.

463
00:21:37,680 --> 00:21:40,520
Speaker 9: While we have heard from the AI cryptos are David Sachs,

464
00:21:40,520 --> 00:21:42,240
Speaker 9: we have yet to hear from the President of the

465
00:21:42,359 --> 00:21:45,320
Speaker 9: United States Supports just a week now into his term,

466
00:21:45,359 --> 00:21:47,479
Speaker 9: but he is busy today. In fact, he was spending

467
00:21:47,480 --> 00:21:49,800
Speaker 9: the early portion of today golfing at his Derau resort.

468
00:21:49,920 --> 00:21:53,440
Speaker 2: Yeah about that, lord, little morning golf, a little lunch,

469
00:21:53,680 --> 00:21:55,680
Speaker 2: I guess at poolside? Did you see this one hundred

470
00:21:55,680 --> 00:21:58,560
Speaker 2: and twenty five foot slide at the pool? Are the

471
00:21:58,600 --> 00:22:00,919
Speaker 2: members using the slide this week? They might have to

472
00:22:00,920 --> 00:22:02,720
Speaker 2: take the plunge on a couple of things here, Kayley,

473
00:22:02,760 --> 00:22:05,200
Speaker 2: this is interesting as we've talked about one bill or two,

474
00:22:05,240 --> 00:22:07,280
Speaker 2: what's the agenda going to be? This is apparently the

475
00:22:07,320 --> 00:22:08,960
Speaker 2: two day retreat that's going to decide at all.

476
00:22:09,080 --> 00:22:10,199
Speaker 7: Yeah, that's what we're referring to.

477
00:22:10,200 --> 00:22:13,359
Speaker 9: Hear the Republican Conference retreat into Ralph, Florida, where Donald

478
00:22:13,359 --> 00:22:17,159
Speaker 9: Trump will be speaking behind closed doors this evening to lawmakers,

479
00:22:17,160 --> 00:22:19,560
Speaker 9: potentially outlining the way in which he'd like them to

480
00:22:19,600 --> 00:22:22,480
Speaker 9: move forward on his legislative agenda. So for more insight

481
00:22:22,560 --> 00:22:24,680
Speaker 9: on this. Now, joining us in our Washington, d C.

482
00:22:24,840 --> 00:22:27,760
Speaker 9: Studio is Sarah chamberlinch He's president CEO of the Republican

483
00:22:28,119 --> 00:22:32,040
Speaker 9: Main Street Partnership. Welcome back to Balance of Power, Sarah,

484
00:22:32,119 --> 00:22:34,560
Speaker 9: I do wonder what Main Street members are planning to

485
00:22:34,640 --> 00:22:37,480
Speaker 9: say in return to Donald Trump about the way in

486
00:22:37,520 --> 00:22:40,440
Speaker 9: which they would advise his legislative agenda be pursued.

487
00:22:40,680 --> 00:22:42,879
Speaker 10: Well, the first thing is they are going down the slide.

488
00:22:43,359 --> 00:22:45,199
Speaker 10: I'm open with this type margin.

489
00:22:45,280 --> 00:22:48,200
Speaker 3: Nobody gets hurt.

490
00:22:51,080 --> 00:22:52,600
Speaker 10: So some of have played golf for them.

491
00:22:52,640 --> 00:22:55,440
Speaker 3: But what they're really advising is one they need one

492
00:22:55,480 --> 00:22:58,520
Speaker 3: bill and they need to have make sure salt is

493
00:22:58,520 --> 00:22:58,760
Speaker 3: in it.

494
00:22:59,280 --> 00:23:01,760
Speaker 10: Immigration is Immigration will definitely be in it. But they're

495
00:23:01,760 --> 00:23:02,720
Speaker 10: really pushing salt.

496
00:23:03,119 --> 00:23:05,280
Speaker 3: It means a great deal to our California members, New

497
00:23:05,320 --> 00:23:07,840
Speaker 3: York members, and actually our New Jersey members, So there's

498
00:23:07,920 --> 00:23:09,479
Speaker 3: one area that they're pushing him hard at.

499
00:23:09,920 --> 00:23:13,080
Speaker 2: So how much of this is pep rally of versus

500
00:23:13,119 --> 00:23:16,760
Speaker 2: negotiation versus productivity. You've got a lot of factions, as

501
00:23:16,760 --> 00:23:20,159
Speaker 2: we've discussed in this Republican conference. Is at Donald Trump's

502
00:23:20,240 --> 00:23:22,160
Speaker 2: job to bring them together and so they can come

503
00:23:22,160 --> 00:23:24,840
Speaker 2: back to Washington to start writing legislation or to make

504
00:23:24,880 --> 00:23:26,080
Speaker 2: a deal that they can go home with.

505
00:23:26,480 --> 00:23:28,199
Speaker 10: So I think it's really believe they're not going to

506
00:23:28,200 --> 00:23:29,080
Speaker 10: be a combination of both.

507
00:23:29,280 --> 00:23:31,879
Speaker 3: He is trying to rally them, get them on the

508
00:23:31,920 --> 00:23:35,760
Speaker 3: same page, have them spend time together doing fun activities

509
00:23:35,800 --> 00:23:39,240
Speaker 3: like we already mentioned and playing some golf. But there

510
00:23:39,280 --> 00:23:41,520
Speaker 3: is a lot of business that's being discussed as well.

511
00:23:41,640 --> 00:23:43,760
Speaker 3: You know, the one bill they need to budget wrecked.

512
00:23:43,800 --> 00:23:46,960
Speaker 3: I mean they need to get all these things done

513
00:23:46,600 --> 00:23:49,440
Speaker 3: by the end of February and then go into the

514
00:23:49,520 --> 00:23:50,560
Speaker 3: hopefully the one bill.

515
00:23:50,880 --> 00:23:52,200
Speaker 10: I'm really I've I.

516
00:23:52,240 --> 00:23:54,560
Speaker 3: Wasn't sure about one bill or two, but now I'm

517
00:23:54,600 --> 00:23:56,639
Speaker 3: convinced it's one bill because I think we are going

518
00:23:56,680 --> 00:23:59,440
Speaker 3: to have to have some Democratic help. So one bill

519
00:23:59,440 --> 00:24:02,360
Speaker 3: it's a little bit easier for the Democrats to swallow.

520
00:24:03,000 --> 00:24:04,800
Speaker 9: Well, so does John Thune need to be part of

521
00:24:04,800 --> 00:24:07,000
Speaker 9: this retreat as well. It's one thing for House Republicans

522
00:24:07,000 --> 00:24:08,679
Speaker 9: and the President to be on the same page, but

523
00:24:08,720 --> 00:24:10,120
Speaker 9: the senate's the other factor here.

524
00:24:10,280 --> 00:24:12,800
Speaker 3: It certainly is, And I know the Speaker is very

525
00:24:12,840 --> 00:24:15,160
Speaker 3: much in touch with a Senator, so I know he's

526
00:24:15,200 --> 00:24:18,160
Speaker 3: not there, but I would be surprised if the Speaker's

527
00:24:18,200 --> 00:24:19,959
Speaker 3: not on the phone with him occasionally this weekend.

528
00:24:20,080 --> 00:24:23,399
Speaker 2: Interesting. You just mentioned some of the ingredients here, not

529
00:24:23,480 --> 00:24:25,800
Speaker 2: the least of which assaults were pun intended. But you've

530
00:24:25,840 --> 00:24:27,920
Speaker 2: got no tax on tips. We talked to Kevin Brady

531
00:24:27,920 --> 00:24:30,760
Speaker 2: about this at the end of last week. No tax

532
00:24:30,800 --> 00:24:32,760
Speaker 2: on overtime. So many different things that would be put

533
00:24:32,800 --> 00:24:37,399
Speaker 2: into one bill that you start wondering what gets left out.

534
00:24:37,440 --> 00:24:39,400
Speaker 2: Are we going to have a debt ceiling as part

535
00:24:39,400 --> 00:24:43,280
Speaker 2: of this? Will emergency funding for wildfires and hurricanes be

536
00:24:43,320 --> 00:24:45,600
Speaker 2: part of this? Because now we're in a world where

537
00:24:45,640 --> 00:24:47,960
Speaker 2: there's something for everyone and no one can say no,

538
00:24:48,359 --> 00:24:49,120
Speaker 2: that's true.

539
00:24:49,280 --> 00:24:52,120
Speaker 10: I definitely think the emergency funding will be put into it,

540
00:24:53,240 --> 00:24:56,600
Speaker 10: not sure, but other things. But this is going to

541
00:24:56,640 --> 00:24:59,000
Speaker 10: be a massive bill. I mean, there's no doubt about that.

542
00:24:59,080 --> 00:25:01,879
Speaker 3: It's going to encompass a lot of things that the House,

543
00:25:01,920 --> 00:25:04,760
Speaker 3: frankly has needed and needs to get done. So hopefully

544
00:25:04,760 --> 00:25:07,720
Speaker 3: the Senate, fingers crossed, will go along with some of

545
00:25:07,760 --> 00:25:11,680
Speaker 3: these initiatives are in this bill. But the other reason

546
00:25:11,720 --> 00:25:14,280
Speaker 3: they want it in one bill is because we all

547
00:25:14,320 --> 00:25:17,760
Speaker 3: know there's some Republicans that do not vote like Republicans,

548
00:25:17,840 --> 00:25:20,400
Speaker 3: don't really care about what the leadership thinks, and they

549
00:25:20,440 --> 00:25:22,480
Speaker 3: have to pick some of the Democrats off to get

550
00:25:22,520 --> 00:25:25,119
Speaker 3: it through, which means you have to put things in

551
00:25:25,160 --> 00:25:27,840
Speaker 3: the bill that the Democrats want, like the funding for

552
00:25:27,920 --> 00:25:32,520
Speaker 3: California fire in North Carolina, and we already talked about salt.

553
00:25:32,800 --> 00:25:36,240
Speaker 3: So it's an interesting play here, but it's going to

554
00:25:36,240 --> 00:25:38,080
Speaker 3: be a huge bill and there's really nothing you can

555
00:25:38,119 --> 00:25:38,879
Speaker 3: do about it.

556
00:25:39,200 --> 00:25:41,520
Speaker 9: Well, and huge in terms of potential price tag as

557
00:25:41,520 --> 00:25:43,280
Speaker 9: well when we're thinking of dollar figures. And some of

558
00:25:43,320 --> 00:25:46,320
Speaker 9: those members you're referring to are people who are very

559
00:25:46,320 --> 00:25:49,880
Speaker 9: fiscally conservative and want to see requisite spending cuts along

560
00:25:50,160 --> 00:25:52,400
Speaker 9: with this. What give us an idea of the pay

561
00:25:52,440 --> 00:25:54,600
Speaker 9: fors that are actually going to be discussed over the

562
00:25:54,640 --> 00:25:55,960
Speaker 9: next few days in these rooms.

563
00:25:56,359 --> 00:25:58,919
Speaker 3: So the pay fors they're going to go through with

564
00:25:59,080 --> 00:26:03,000
Speaker 3: Elon mus help go through every single division in the

565
00:26:03,040 --> 00:26:06,520
Speaker 3: government and see where they can cut Medicare, Medicaid. I

566
00:26:06,560 --> 00:26:08,800
Speaker 3: know they've talked about that social Security. I don't really

567
00:26:08,840 --> 00:26:10,920
Speaker 3: see that being viable down at the end. I don't

568
00:26:10,920 --> 00:26:13,520
Speaker 3: think the members of the republic Community Partnership would vote

569
00:26:13,560 --> 00:26:16,960
Speaker 3: for cut in those three areas. But there is a

570
00:26:16,960 --> 00:26:18,920
Speaker 3: lot of waste in the federal government. I mean, let's

571
00:26:18,920 --> 00:26:20,720
Speaker 3: be honest here, So if we can find some of

572
00:26:20,760 --> 00:26:23,280
Speaker 3: that for offsets, that's where they'd prefer to go. But

573
00:26:23,320 --> 00:26:26,399
Speaker 3: we also do know Donald Trump. President Trump does not

574
00:26:26,640 --> 00:26:30,119
Speaker 3: mind debt. I mean he has in his personal business.

575
00:26:30,280 --> 00:26:32,639
Speaker 3: I mean he doesn't mind debt. I realized there's some

576
00:26:32,720 --> 00:26:35,399
Speaker 3: Democrats or some Republicans that are really opposed to it,

577
00:26:35,640 --> 00:26:38,000
Speaker 3: but the President really is not opposed to it. So

578
00:26:38,080 --> 00:26:41,320
Speaker 3: I think that he'll be comfortable with not finding total offsets.

579
00:26:41,400 --> 00:26:43,359
Speaker 2: Called himself the King of debt, if you remember that

580
00:26:43,440 --> 00:26:45,680
Speaker 2: a couple of years, so he did. Why not get

581
00:26:45,680 --> 00:26:48,280
Speaker 2: a little more With that said, then you start wondering

582
00:26:48,280 --> 00:26:52,560
Speaker 2: about the calendar and a very ambitious approach. At one

583
00:26:52,600 --> 00:26:54,520
Speaker 2: point by Mike Johnson, he said he wanted a budget

584
00:26:54,520 --> 00:26:57,600
Speaker 2: bill up for a vote the end of February. That

585
00:26:57,640 --> 00:27:01,200
Speaker 2: would require a small mirror. At this point, I assume,

586
00:27:01,200 --> 00:27:03,920
Speaker 2: what's the realistic timetable here? They have a few months

587
00:27:03,920 --> 00:27:04,400
Speaker 2: to play.

588
00:27:04,240 --> 00:27:05,800
Speaker 3: With, they do they really have them till the end

589
00:27:05,800 --> 00:27:08,320
Speaker 3: of the year, so but please let's not go to

590
00:27:08,359 --> 00:27:12,040
Speaker 3: the end of the year, please. I think March, probably

591
00:27:12,040 --> 00:27:15,359
Speaker 3: March into April is a realistic in the first half,

592
00:27:15,880 --> 00:27:17,959
Speaker 3: hopefully in the first stelf because there is other business

593
00:27:18,160 --> 00:27:20,480
Speaker 3: that they need to get onto, so they're hoping by

594
00:27:20,800 --> 00:27:26,840
Speaker 3: the holiday break in April, they hope to have something done.

595
00:27:27,520 --> 00:27:29,600
Speaker 3: That song is going to have to be. We're running

596
00:27:29,640 --> 00:27:32,000
Speaker 3: out of money. So I'm fortunate to get taken care

597
00:27:32,040 --> 00:27:34,200
Speaker 3: of last year. I understand that I actually agreed with

598
00:27:34,280 --> 00:27:37,000
Speaker 3: President Trump that he wanted to get it done then,

599
00:27:37,320 --> 00:27:39,840
Speaker 3: so that that needs to get done again the first

600
00:27:40,280 --> 00:27:42,439
Speaker 3: first quarter of this year. So a lot on the

601
00:27:42,480 --> 00:27:44,919
Speaker 3: table that needs to get done before April.

602
00:27:45,000 --> 00:27:47,439
Speaker 9: Well, especially when you consider the Treasury Department already for

603
00:27:47,480 --> 00:27:50,879
Speaker 9: the last week has been implementing extraordinary extraordinary measures that

604
00:27:50,920 --> 00:27:54,359
Speaker 9: I only can go so far potentially to the summer

605
00:27:54,400 --> 00:27:56,440
Speaker 9: if we're lucky. I do wonder though, and you refer

606
00:27:56,480 --> 00:27:57,960
Speaker 9: to what Donald Trump was asking for at the end

607
00:27:58,000 --> 00:27:59,840
Speaker 9: of last year, if it's going to be just a

608
00:28:00,040 --> 00:28:02,840
Speaker 9: temporary extension of the debt ceiling for some period of time,

609
00:28:02,960 --> 00:28:05,119
Speaker 9: or if his suggestion that should be done away with

610
00:28:05,320 --> 00:28:07,280
Speaker 9: entirely is something that can become reality.

611
00:28:07,520 --> 00:28:10,040
Speaker 3: I know that the Republic Mainstreat Partnership members would pretty

612
00:28:10,080 --> 00:28:11,600
Speaker 3: much like it done entirely.

613
00:28:12,680 --> 00:28:14,160
Speaker 10: I actually Elizabeth.

614
00:28:13,680 --> 00:28:16,119
Speaker 3: Warren, Senator Warren agrees with us on that, which I

615
00:28:16,160 --> 00:28:19,360
Speaker 3: don't think has ever happened before. But it would be

616
00:28:19,359 --> 00:28:21,280
Speaker 3: better for the country than we wouldn't have to go

617
00:28:21,359 --> 00:28:24,640
Speaker 3: through this exercise. We always end up increasing it anyway,

618
00:28:24,880 --> 00:28:26,919
Speaker 3: so it'd be nice to get it off the table.

619
00:28:27,160 --> 00:28:28,679
Speaker 3: But that's going to have to get done in the

620
00:28:28,720 --> 00:28:29,480
Speaker 3: next few weeks.

621
00:28:29,920 --> 00:28:34,000
Speaker 2: We talk about spending cuts, there are some areas that

622
00:28:34,040 --> 00:28:38,240
Speaker 2: you've isolated where spending increases could in fact be the case,

623
00:28:38,280 --> 00:28:39,720
Speaker 2: and the Pentagon is going to be one of them.

624
00:28:39,800 --> 00:28:42,160
Speaker 2: Rick Davis was the first to mention the first trillion

625
00:28:42,240 --> 00:28:46,080
Speaker 2: dollar defense budget. Will that be the story in this bill,

626
00:28:46,120 --> 00:28:48,440
Speaker 2: that we're talking about a trillion dollars on the Pentagon?

627
00:28:48,520 --> 00:28:50,760
Speaker 10: I think it will be. It's going to be.

628
00:28:50,800 --> 00:28:51,920
Speaker 2: Main Street would be behind that.

629
00:28:52,320 --> 00:28:55,440
Speaker 3: I think so at least most of the members obviously

630
00:28:55,480 --> 00:28:59,120
Speaker 3: one of our members, Ken Calvert, is the appropriator over

631
00:28:59,160 --> 00:29:02,520
Speaker 3: the Defense Department. But we've given a lot to Ukraine.

632
00:29:02,600 --> 00:29:03,240
Speaker 10: We have to.

633
00:29:03,200 --> 00:29:06,520
Speaker 3: Rebuild what we've given to Ukraine, so that's part of

634
00:29:06,560 --> 00:29:10,360
Speaker 3: this as well. Plus we need new technology. I don't

635
00:29:10,400 --> 00:29:13,040
Speaker 3: know if if we're going to fight any more ground wars,

636
00:29:13,160 --> 00:29:18,440
Speaker 3: it's probably going to be Intelligence Awards AI type wars.

637
00:29:18,720 --> 00:29:20,520
Speaker 10: So we need to upper a game in that area.

638
00:29:20,720 --> 00:29:22,200
Speaker 3: And then, of course, I know he wants to spend

639
00:29:22,240 --> 00:29:24,880
Speaker 3: some of the money on the border for the immigration problem.

640
00:29:25,120 --> 00:29:27,560
Speaker 9: To that point, how does the mainstream partnership? But how

641
00:29:27,600 --> 00:29:29,480
Speaker 9: do the members feel about the way in which the

642
00:29:29,520 --> 00:29:32,200
Speaker 9: border crackdown is going so far? The deportations. We've seen

643
00:29:32,240 --> 00:29:34,640
Speaker 9: a very small trade war that started and ended, it

644
00:29:34,640 --> 00:29:38,360
Speaker 9: seemed over the weekend over the deportation of migrants. Are

645
00:29:38,400 --> 00:29:39,760
Speaker 9: they happy with everything they're seeing?

646
00:29:39,800 --> 00:29:42,560
Speaker 3: They're absolutely happy with it. I mean, immigration is number

647
00:29:42,560 --> 00:29:46,200
Speaker 3: one issue. I think that's probably why President Trump was

648
00:29:46,280 --> 00:29:48,920
Speaker 3: able to be elected again, and they want the border

649
00:29:48,960 --> 00:29:51,440
Speaker 3: cleaned up, and the people in their districts want this

650
00:29:51,480 --> 00:29:53,400
Speaker 3: border cleaned up. So I think he had a very

651
00:29:53,440 --> 00:29:56,600
Speaker 3: successful so far, so good on that. And it was

652
00:29:56,680 --> 00:29:59,200
Speaker 3: kind of interesting to see how he dealt with the President.

653
00:29:59,480 --> 00:30:03,000
Speaker 3: President kind of caved. President Trump said, Okay, we won't

654
00:30:03,080 --> 00:30:06,040
Speaker 3: send them on military plans, we send them on commercial

655
00:30:06,240 --> 00:30:08,960
Speaker 3: So I think there's some negotiation there. It worked out,

656
00:30:09,280 --> 00:30:11,320
Speaker 3: and we'll continue to send them home.

657
00:30:11,360 --> 00:30:14,120
Speaker 2: So that's the playbook that he prove that tariff's work.

658
00:30:14,920 --> 00:30:15,560
Speaker 10: I think you did.

659
00:30:15,800 --> 00:30:17,280
Speaker 3: I think it's no doubt about it. I mean they

660
00:30:17,320 --> 00:30:18,880
Speaker 3: came to the table pretty quickly on that.

661
00:30:19,040 --> 00:30:22,720
Speaker 2: Just the threat of a tariff just exactly interesting. Here

662
00:30:22,760 --> 00:30:25,200
Speaker 2: we are again, Sarah Chamberlin. Great to see you. Seems

663
00:30:25,280 --> 00:30:27,640
Speaker 2: unfair somehow, seventy five degrees in Miami, but there's still

664
00:30:27,680 --> 00:30:29,440
Speaker 2: snow on the ground, but you're here with us. We're

665
00:30:29,520 --> 00:30:33,520
Speaker 2: lucky for that. My apologies, although we do want pictures

666
00:30:33,520 --> 00:30:36,680
Speaker 2: of the slide from the Republican Main Street Partnership, Sarah Chamberlain,

667
00:30:36,760 --> 00:30:38,800
Speaker 2: one of the most connected Republican voices that will bring

668
00:30:38,800 --> 00:30:40,800
Speaker 2: you here on this program. When they come back, they're

669
00:30:40,800 --> 00:30:41,600
Speaker 2: gonna have a lot of work to do.

670
00:30:41,680 --> 00:30:41,920
Speaker 4: Killie.

671
00:30:42,120 --> 00:30:43,320
Speaker 9: Yeah, and they're going to have to do it in

672
00:30:43,320 --> 00:30:45,360
Speaker 9: pretty short order, do you hear, Sarah, Just a matter

673
00:30:45,400 --> 00:30:48,080
Speaker 9: of weeks to deal with the debt ceiling. Maybe we're

674
00:30:48,120 --> 00:30:49,960
Speaker 9: not going to push it so close to the X state.

675
00:30:50,080 --> 00:30:52,600
Speaker 2: You said the two words extraordinary measures. That's our reality

676
00:30:52,680 --> 00:30:54,720
Speaker 2: right now. We'll have a lot more with our panel

677
00:30:54,720 --> 00:30:56,720
Speaker 2: coming up next. Rick Davis and Genie Shanzano are with

678
00:30:56,760 --> 00:30:58,480
Speaker 2: us on the Monday edition to Balance and Power. We're

679
00:30:58,480 --> 00:30:59,280
Speaker 2: glad you are too.

680
00:31:01,560 --> 00:31:05,080
Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch

681
00:31:05,120 --> 00:31:07,960
Speaker 1: us live weekdays at noon and five pm E's durn

682
00:31:08,120 --> 00:31:11,520
Speaker 1: on Apple Cocklay and Android Auto with the Bloomberg Business app.

683
00:31:11,560 --> 00:31:14,600
Speaker 1: You can also listen live on Amazon Alexa from our

684
00:31:14,640 --> 00:31:19,840
Speaker 1: flagship New York station Just Say Alexa played Bloomberg eleven thirty.

685
00:31:20,760 --> 00:31:23,560
Speaker 9: Rest assured that Washington is taking note of what we're

686
00:31:23,560 --> 00:31:25,760
Speaker 9: seeing in financial markets today, all of it, of course

687
00:31:26,080 --> 00:31:31,320
Speaker 9: precipitated by deep seek and concerns over potential cheaper but

688
00:31:31,440 --> 00:31:34,200
Speaker 9: just as capable technology coming from China, something that the

689
00:31:34,280 --> 00:31:37,520
Speaker 9: US has been trying to prevent through export controls and

690
00:31:37,600 --> 00:31:39,680
Speaker 9: other means, and certainly something that is likely to get

691
00:31:39,680 --> 00:31:43,880
Speaker 9: the attention of this income or just brand new Trump

692
00:31:43,920 --> 00:31:47,320
Speaker 9: administration one week in keeping in mind that the President

693
00:31:47,360 --> 00:31:50,080
Speaker 9: has signed executive orders within the last few days pertaining

694
00:31:50,440 --> 00:31:53,640
Speaker 9: to artificial intelligence and announced a near half a trillion

695
00:31:53,720 --> 00:31:59,320
Speaker 9: dollar AI infrastructure development deal between Oracle and SoftBank and

696
00:31:59,400 --> 00:32:02,680
Speaker 9: Open Ai, who may now find themselves having to compete

697
00:32:03,240 --> 00:32:06,239
Speaker 9: with Deep Seek. All of it, of course, in the

698
00:32:06,280 --> 00:32:08,960
Speaker 9: midst of what has been a flurry of other executive

699
00:32:09,000 --> 00:32:12,440
Speaker 9: action unrelated to artificial intelligence, but some of it related

700
00:32:12,480 --> 00:32:16,920
Speaker 9: to new generation technology of another type. Joe as Bloomberg

701
00:32:16,920 --> 00:32:19,640
Speaker 9: has learned that today Donald Trump is preparing an executive

702
00:32:19,720 --> 00:32:23,920
Speaker 9: order to create a next generation defense shield to protect

703
00:32:23,960 --> 00:32:27,600
Speaker 9: the US against ballistic missiles. This is the US iron Dome.

704
00:32:27,640 --> 00:32:28,880
Speaker 9: We've long heard him teasing.

705
00:32:29,080 --> 00:32:30,800
Speaker 2: Yeah, he talked about this on the campaign, t really

706
00:32:30,840 --> 00:32:32,680
Speaker 2: talked about it in his first term. I'm not sure

707
00:32:32,680 --> 00:32:34,840
Speaker 2: how that would work. We're talking about a much larger

708
00:32:34,880 --> 00:32:38,560
Speaker 2: area we would need to defense where Yeah, you know,

709
00:32:38,600 --> 00:32:43,160
Speaker 2: this isn't they Actually it's not a real dome. We

710
00:32:43,200 --> 00:32:45,480
Speaker 2: actually need to send missiles up. You've seen this in

711
00:32:45,600 --> 00:32:50,280
Speaker 2: use in the skies over Israel. Would require uncounted numbers

712
00:32:50,440 --> 00:32:55,000
Speaker 2: of ground to air missiles interceptors essentially, and would be

713
00:32:55,040 --> 00:32:57,600
Speaker 2: a boon for defense contractors like Raytheon if it were

714
00:32:57,600 --> 00:32:57,960
Speaker 2: to happen.

715
00:32:58,040 --> 00:33:01,240
Speaker 9: Well and the newly minted Defense Secretary Pete Hegseth seems

716
00:33:01,280 --> 00:33:03,280
Speaker 9: on board. When he arrived at the Pentagon for his

717
00:33:03,360 --> 00:33:06,200
Speaker 9: first real day of work in that job, he talked

718
00:33:06,200 --> 00:33:08,840
Speaker 9: about this idea as well as some other initiatives. Now

719
00:33:08,840 --> 00:33:11,280
Speaker 9: that he thinks to jd Vance casting the tie breaking

720
00:33:11,360 --> 00:33:12,280
Speaker 9: vote has.

721
00:33:12,120 --> 00:33:14,040
Speaker 10: Been able to take over as the helm of that department.

722
00:33:14,120 --> 00:33:16,640
Speaker 2: That was the moment late Friday, jd Vance in the

723
00:33:16,640 --> 00:33:20,080
Speaker 2: motorcade to cast the deciding vote that made indeed Pete

724
00:33:20,120 --> 00:33:23,720
Speaker 2: Hegseth the new Secretary of Defense. If you're with us

725
00:33:23,760 --> 00:33:26,280
Speaker 2: on Bloomberg TV or on YouTube, you see his arrival

726
00:33:26,320 --> 00:33:29,160
Speaker 2: there at the Pentagon a bit earlier today at Chile

727
00:33:29,280 --> 00:33:32,160
Speaker 2: Monday morning in Washington in January. And that's where we

728
00:33:32,200 --> 00:33:36,360
Speaker 2: start with our signature panel. Bloomberg Politics contributors Rick Davis

729
00:33:36,400 --> 00:33:39,800
Speaker 2: and Genie Shanzino are with us. She is Democratic analyst

730
00:33:39,800 --> 00:33:43,320
Speaker 2: and political science professor at Iona University. Rick is Republican

731
00:33:43,360 --> 00:33:47,479
Speaker 2: strategist and partner at Stone Court Capital. Genie, what does

732
00:33:47,520 --> 00:33:49,880
Speaker 2: it tell you when jd Vance has to cast the

733
00:33:49,920 --> 00:33:52,080
Speaker 2: deciding vote on such an important appointment?

734
00:33:53,760 --> 00:33:56,240
Speaker 8: It tells us that, you know, the margin that they're

735
00:33:56,280 --> 00:33:58,840
Speaker 8: working with in the Senate is very slim, and I

736
00:33:58,880 --> 00:34:02,120
Speaker 8: think many of us thought that perhaps McConnell would go

737
00:34:02,280 --> 00:34:05,160
Speaker 8: no only if there was a fourth no, but that's

738
00:34:05,240 --> 00:34:07,760
Speaker 8: not what he did. He went no regardless of that.

739
00:34:08,320 --> 00:34:11,279
Speaker 8: And so that means that in my mind at least,

740
00:34:11,360 --> 00:34:15,480
Speaker 8: questions not only about Trump's upcoming nominations who are controversial

741
00:34:15,560 --> 00:34:18,720
Speaker 8: like Gabbard and RFK Junior this week and cash Ptel,

742
00:34:19,120 --> 00:34:23,400
Speaker 8: but also Trump's agenda. Does Mitch McConnell turn out to be,

743
00:34:23,640 --> 00:34:27,000
Speaker 8: I don't know, the new Lisa Murkowski or Susan Collins

744
00:34:27,120 --> 00:34:30,200
Speaker 8: or Joe Manchin on the Democratic side who's willing to

745
00:34:30,360 --> 00:34:33,759
Speaker 8: stand up and say no to Donald Trump. And that

746
00:34:33,960 --> 00:34:36,239
Speaker 8: is going to mean that Donald Trump's either going to

747
00:34:36,280 --> 00:34:39,600
Speaker 8: have to pull some Democrats, which is unlikely if he's

748
00:34:39,640 --> 00:34:43,600
Speaker 8: lost Murkowski, Collins and of course McConnell, or is he

749
00:34:43,680 --> 00:34:46,720
Speaker 8: going to play ball with McConnell on things he cares about,

750
00:34:46,760 --> 00:34:50,920
Speaker 8: like national security and also Senate rules. So there is

751
00:34:51,000 --> 00:34:53,680
Speaker 8: a lot that this portends that we just don't know

752
00:34:53,719 --> 00:34:55,000
Speaker 8: how it's going to play out.

753
00:34:56,520 --> 00:34:58,400
Speaker 9: Well, and we also don't know how things will go

754
00:34:58,520 --> 00:35:01,520
Speaker 9: down in committee on Thursday, when Tulsi Gabbard, who Genie

755
00:35:01,640 --> 00:35:04,799
Speaker 9: just mentioned, rick will have her confirmation hearing, knowing she's

756
00:35:04,840 --> 00:35:08,400
Speaker 9: faced a great deal of scrutiny for past behaviors, including

757
00:35:08,440 --> 00:35:11,160
Speaker 9: a visit to Syria some years ago. This is actually

758
00:35:11,200 --> 00:35:14,080
Speaker 9: something that Senator Lindsay Graham, Republican Senator I would add,

759
00:35:14,080 --> 00:35:15,640
Speaker 9: spoke about on Meet the Press yesterday.

760
00:35:16,160 --> 00:35:18,560
Speaker 6: I tend to vote for almost everybody at both parties,

761
00:35:18,560 --> 00:35:20,479
Speaker 6: but I want to see how the hearing goes. Why

762
00:35:20,480 --> 00:35:23,240
Speaker 6: didn't you go to Syria? What did you do regarding

763
00:35:23,280 --> 00:35:25,840
Speaker 6: the side. Why do you think Edward Snowden should be

764
00:35:26,760 --> 00:35:28,880
Speaker 6: haill as a hero? I certainly don't. We'll see how

765
00:35:28,880 --> 00:35:31,560
Speaker 6: the hearing goes. But in her favor, Richard Burr is

766
00:35:31,560 --> 00:35:34,000
Speaker 6: going to introduce her, and he's one of my dearest friends.

767
00:35:34,000 --> 00:35:34,560
Speaker 2: So we'll see.

768
00:35:36,360 --> 00:35:38,640
Speaker 9: Rick. There's a few questions I could ask you around this,

769
00:35:38,680 --> 00:35:41,680
Speaker 9: one being just how you view Tulsi Gabbert's prospects right

770
00:35:41,719 --> 00:35:44,360
Speaker 9: now ahead of this hearing. The other being what impact

771
00:35:44,400 --> 00:35:46,319
Speaker 9: will the shepherding of Richard Burr have for her?

772
00:35:47,800 --> 00:35:48,000
Speaker 10: Yeah?

773
00:35:48,080 --> 00:35:49,880
Speaker 11: I think, first of all, you know, you've got a

774
00:35:49,880 --> 00:35:54,040
Speaker 11: pretty compliant Republican caucus. Someone told me over the weekend

775
00:35:54,040 --> 00:35:55,840
Speaker 11: when these votes were being taken that there are a

776
00:35:55,840 --> 00:35:59,520
Speaker 11: lot of senators Republican senators think they're John McCain, but

777
00:35:59,560 --> 00:36:02,279
Speaker 11: they act like Tom Tillis, and that is kind of

778
00:36:02,320 --> 00:36:05,600
Speaker 11: a you know, way to think about it. You know,

779
00:36:05,719 --> 00:36:08,759
Speaker 11: they think they're going to be tough, they think they're

780
00:36:08,800 --> 00:36:11,520
Speaker 11: going to run these people through their marks, and then

781
00:36:11,680 --> 00:36:14,560
Speaker 11: what they wind up doing is going along with the president.

782
00:36:14,560 --> 00:36:18,680
Speaker 11: In some cases it's re election fear. Some cases, it's

783
00:36:18,760 --> 00:36:22,200
Speaker 11: not worth the agony to be set up. In some

784
00:36:22,239 --> 00:36:25,120
Speaker 11: cases they have other priorities that they want to get done.

785
00:36:25,280 --> 00:36:29,160
Speaker 11: I mean, the Lindsay Graham comments are really instructive. Lindsay

786
00:36:29,160 --> 00:36:35,560
Speaker 11: Graham does usually vote favorably for both Republican and Democratic senators, judges,

787
00:36:35,840 --> 00:36:39,319
Speaker 11: you name it. He thinks that's the president's prerogative, and

788
00:36:39,600 --> 00:36:41,640
Speaker 11: a lot of senators feel that way. They would have

789
00:36:41,680 --> 00:36:45,560
Speaker 11: to have something extraordinary and to march in a former

790
00:36:45,640 --> 00:36:49,120
Speaker 11: senator who was the chairman of the Intelligence Committee and

791
00:36:49,160 --> 00:36:52,520
Speaker 11: who was well liked amongst the caucus members to introduce

792
00:36:53,160 --> 00:36:57,560
Speaker 11: Tulsea Gabbert, you know, smart move, and he's got nothing

793
00:36:57,560 --> 00:36:58,000
Speaker 11: to lose.

794
00:36:58,600 --> 00:37:00,279
Speaker 2: He could do whatever he wants to do this.

795
00:37:00,280 --> 00:37:02,400
Speaker 11: Free time, and he chooses to come back to DC

796
00:37:03,160 --> 00:37:06,439
Speaker 11: in front for her nomination. Look, I mean I think,

797
00:37:06,480 --> 00:37:10,240
Speaker 11: as we've just recounted, there are three consistent votes against

798
00:37:10,280 --> 00:37:13,080
Speaker 11: people who probably shouldn't be in these jobs. The question

799
00:37:13,239 --> 00:37:16,759
Speaker 11: is who's that fourth person? And that I think is

800
00:37:16,800 --> 00:37:18,360
Speaker 11: really hard to figure out.

801
00:37:19,840 --> 00:37:22,239
Speaker 2: Interesting we weren't supposed to know about Richard Burr. I

802
00:37:22,239 --> 00:37:24,480
Speaker 2: guess Lindsey Graham let that slip. So that must have

803
00:37:24,520 --> 00:37:27,359
Speaker 2: been an interesting moment for Richard Burr, who will be

804
00:37:27,520 --> 00:37:29,680
Speaker 2: you know, not only walking her around and doing the

805
00:37:29,719 --> 00:37:33,040
Speaker 2: meetings and so forth. I guess introducing her before the

806
00:37:33,120 --> 00:37:36,360
Speaker 2: confirmation hearing, Genie. But Richard Burr, of course, this is

807
00:37:36,360 --> 00:37:38,360
Speaker 2: a former chair of the Intelligence Committee, has been offering

808
00:37:38,360 --> 00:37:41,320
Speaker 2: advice and counsel in recent weeks. Here will he improve

809
00:37:41,360 --> 00:37:42,920
Speaker 2: her chances of being confirmed?

810
00:37:44,760 --> 00:37:47,640
Speaker 8: I think he will. Certainly. He knows how this is

811
00:37:47,680 --> 00:37:49,759
Speaker 8: going to play out for her in the hearing. He

812
00:37:49,840 --> 00:37:52,319
Speaker 8: knows what to tell her to watch out for. And

813
00:37:52,360 --> 00:37:55,200
Speaker 8: we heard Tom Caughton on Fox News over the weekend

814
00:37:55,320 --> 00:37:59,320
Speaker 8: saying essentially that she is going to have a fair hearing.

815
00:37:59,680 --> 00:38:03,120
Speaker 8: But it interesting when you hear that because what he

816
00:38:03,200 --> 00:38:07,040
Speaker 8: is saying is I'll guarantee the process, but not the outcome,

817
00:38:07,440 --> 00:38:11,359
Speaker 8: which suggests that there may be a fourth no out

818
00:38:11,400 --> 00:38:15,760
Speaker 8: there somewhere, if not more, Tulca Gabbard is the one

819
00:38:15,800 --> 00:38:19,960
Speaker 8: who's most likely to go down, although historically once you

820
00:38:20,040 --> 00:38:21,920
Speaker 8: get to the hearing, that's a you know, that's not

821
00:38:22,000 --> 00:38:25,040
Speaker 8: something that usually happens. And it's all the issues that

822
00:38:25,160 --> 00:38:28,120
Speaker 8: Kaylie mentioned, and then it's her flip flopping on seven

823
00:38:28,160 --> 00:38:32,200
Speaker 8: oh two, which has been troubling to many on the

824
00:38:32,280 --> 00:38:36,000
Speaker 8: particularly the Republican side. So this is somebody who we're

825
00:38:36,000 --> 00:38:38,640
Speaker 8: going to have to watch for, along with of course

826
00:38:38,800 --> 00:38:42,960
Speaker 8: Cash Battel this week, and of course there's other hearings

827
00:38:43,040 --> 00:38:45,839
Speaker 8: as well, including RFK Junior, and those are the three

828
00:38:46,080 --> 00:38:48,600
Speaker 8: sort of most controversial that Trump has nominated.

829
00:38:50,280 --> 00:38:52,919
Speaker 9: Well, but when we consider the president Genie fresh off

830
00:38:52,960 --> 00:38:55,600
Speaker 9: what ultimately, though hard fought, was a victory in getting

831
00:38:55,600 --> 00:38:59,640
Speaker 9: Pete Hegseth confirmed then maybe the shortest ever trade war

832
00:39:00,080 --> 00:39:02,560
Speaker 9: in the US and Colombia to make sure that migrants

833
00:39:02,560 --> 00:39:06,200
Speaker 9: could be deported back to that country on military aircraft

834
00:39:06,239 --> 00:39:10,200
Speaker 9: through threat of tariffs, and the Colombian president quickly agreed

835
00:39:10,239 --> 00:39:12,840
Speaker 9: to Trump's terms. We understand, is this not a lesson

836
00:39:12,880 --> 00:39:15,719
Speaker 9: that Donald Trump by and large is getting what he.

837
00:39:15,719 --> 00:39:16,960
Speaker 7: Wants, at least for now.

838
00:39:16,960 --> 00:39:18,480
Speaker 9: Why would we believe that there is going to be

839
00:39:18,480 --> 00:39:21,040
Speaker 9: an exception to that rule so early in this term.

840
00:39:22,040 --> 00:39:24,759
Speaker 8: Yeah, I wouldn't suggest that we know she's going to

841
00:39:24,840 --> 00:39:27,239
Speaker 8: go down. I think the thinking is she's the most

842
00:39:27,320 --> 00:39:30,840
Speaker 8: vulnerable of those left. That doesn't mean by any stretch

843
00:39:30,880 --> 00:39:33,800
Speaker 8: of the imagination, she goes down. And Donald Trump is

844
00:39:33,840 --> 00:39:36,640
Speaker 8: having a very good first week. But let's not forget

845
00:39:36,640 --> 00:39:39,080
Speaker 8: what just happened. And you were just talking about the

846
00:39:39,239 --> 00:39:43,000
Speaker 8: Chinese came out and they shot the gun over the bow.

847
00:39:43,440 --> 00:39:45,680
Speaker 8: There is no question on the timing here of the

848
00:39:45,800 --> 00:39:49,160
Speaker 8: Chinese coming out with all of this information on Deep Seek,

849
00:39:49,560 --> 00:39:52,759
Speaker 8: not just how much it cost, but what was involved

850
00:39:52,840 --> 00:39:56,240
Speaker 8: in the creation. That is a warning that Donald Trump's

851
00:39:56,280 --> 00:40:00,200
Speaker 8: smooth sailing may not be so smooth around the world,

852
00:40:00,239 --> 00:40:02,959
Speaker 8: that this competition is very real. So, yes, He's got

853
00:40:02,960 --> 00:40:06,520
Speaker 8: some important short term wins here, but it is not

854
00:40:06,560 --> 00:40:09,360
Speaker 8: going to be smooth sailing. It never is for the president.

855
00:40:10,480 --> 00:40:13,200
Speaker 2: I keep asking Rick on this Deep Seek matter, why

856
00:40:13,600 --> 00:40:15,520
Speaker 2: not if you're Donald Trump, why not just ban it

857
00:40:15,560 --> 00:40:19,520
Speaker 2: if it's scooping up a Gmail accounts and phone numbers

858
00:40:19,560 --> 00:40:21,920
Speaker 2: of Americans? Or would that make it more difficult for

859
00:40:22,040 --> 00:40:27,040
Speaker 2: him to rationalize keeping TikTok around. Yeah, well he.

860
00:40:27,000 --> 00:40:29,799
Speaker 11: Could always flip flop on TikTok again, right, I mean, like,

861
00:40:29,840 --> 00:40:32,839
Speaker 11: why don't we just come to agreement that these pernicious

862
00:40:34,000 --> 00:40:36,880
Speaker 11: kind of businesses that are really sponsored by the Chinese

863
00:40:36,920 --> 00:40:41,319
Speaker 11: Communist Party and are collecting enormous amount of data on

864
00:40:41,520 --> 00:40:45,120
Speaker 11: everything we do in our lives should not be allowed

865
00:40:45,120 --> 00:40:47,839
Speaker 11: to prosper in the United States.

866
00:40:47,520 --> 00:40:48,200
Speaker 2: It's not.

867
00:40:49,080 --> 00:40:52,440
Speaker 11: And I think that if you have consistency in the administration,

868
00:40:52,920 --> 00:40:55,000
Speaker 11: you'd look at this and many of these other apps

869
00:40:55,040 --> 00:40:58,200
Speaker 11: that are people flocking to outside of TikTok and you'd

870
00:40:58,200 --> 00:41:01,040
Speaker 11: shut them down immediately. And why I give access to

871
00:41:01,120 --> 00:41:04,520
Speaker 11: our data and our information when we don't have reciprocity

872
00:41:04,560 --> 00:41:08,480
Speaker 11: in China? Simply put, forget all the national security implications,

873
00:41:08,520 --> 00:41:09,880
Speaker 11: which are not insignificant.

874
00:41:10,800 --> 00:41:11,840
Speaker 2: You know, Donald Trump.

875
00:41:11,560 --> 00:41:15,680
Speaker 11: Wants to make it tough for countries that don't allow

876
00:41:15,719 --> 00:41:19,160
Speaker 11: our businesses to prosper in their markets. China is the

877
00:41:19,200 --> 00:41:21,560
Speaker 11: worst offender, go after them first.

878
00:41:23,920 --> 00:41:25,520
Speaker 9: Well, Rick, when we look at what's happening in the

879
00:41:25,520 --> 00:41:27,879
Speaker 9: markets today, an Aztec one hundred now down three point

880
00:41:27,960 --> 00:41:30,920
Speaker 9: three percent in video obviously is creating a massive drag

881
00:41:30,920 --> 00:41:33,640
Speaker 9: over the implications for that company. But are you surprised,

882
00:41:33,680 --> 00:41:35,719
Speaker 9: because I'm a little surprised that we haven't heard from

883
00:41:35,840 --> 00:41:38,400
Speaker 9: Donald Trump about this yet, knowing how he likes to

884
00:41:38,520 --> 00:41:40,400
Speaker 9: use the stock market as a barometer for how he

885
00:41:40,520 --> 00:41:42,280
Speaker 9: himself is doing as president.

886
00:41:43,200 --> 00:41:45,200
Speaker 11: Well, he hasn't put it out yet, so I mean,

887
00:41:45,200 --> 00:41:49,200
Speaker 11: maybe we'll hear from him later this afternoon. But yeah,

888
00:41:49,280 --> 00:41:52,440
Speaker 11: I wouldn't be surprised that we get a you know,

889
00:41:52,760 --> 00:41:56,120
Speaker 11: true social post even while he's still on the golf

890
00:41:56,160 --> 00:42:01,000
Speaker 11: course before the dinner tonight with Republican leadership. It says

891
00:42:01,040 --> 00:42:03,799
Speaker 11: something gives the country some indication of where his mind

892
00:42:03,880 --> 00:42:07,040
Speaker 11: is because it has been doing the wander a little

893
00:42:07,080 --> 00:42:09,960
Speaker 11: bit on this issue, and we'd like to see it

894
00:42:10,000 --> 00:42:13,279
Speaker 11: wander back to someplace that has strategic value to the

895
00:42:13,360 --> 00:42:14,080
Speaker 11: United States.

896
00:42:15,480 --> 00:42:19,800
Speaker 9: All right, Rick Davis and Jeanie Shanzino, our signature political panel, Thank.

897
00:42:19,680 --> 00:42:24,880
Speaker 2: You so much, thanks for listening to the Balance of

898
00:42:24,920 --> 00:42:28,440
Speaker 2: Power Podcasts. Make sure to subscribe if you haven't already,

899
00:42:28,440 --> 00:42:31,759
Speaker 2: at Apple, Spotify, or wherever you get your podcasts, and

900
00:42:31,840 --> 00:42:34,439
Speaker 2: you can find us live every weekday from Washington, DC

901
00:42:34,600 --> 00:42:37,320
Speaker 2: at noontime Eastern at Bloomberg dot com.