WEBVTT - Warren Tells Fed to Stop; Disney Wants More Magic from Iger 0:00:02.520 --> 0:00:03.040 Good morning. 0:00:03.080 --> 0:00:05.920 I'm Nathan Hager and I'm Karen Moscow. Here are the 0:00:05.960 --> 0:00:07.440 stories we're following today. 0:00:08.840 --> 0:00:10.760 The S and P five hundred begins the day at 0:00:10.800 --> 0:00:13.640 its highest level since April of twenty twenty two. A 0:00:13.800 --> 0:00:17.520 slow down in inflation is bolstering speculation the Fed is 0:00:17.560 --> 0:00:20.919 close to ending raid hikes. The consumer Price index rose 0:00:21.000 --> 0:00:23.320 three percent in June from a year ago. The core 0:00:23.400 --> 0:00:26.600 measures at its lowest level since twenty twenty one. Former 0:00:26.640 --> 0:00:29.080 New York Fed President William Dudley thinks the Fed is 0:00:29.240 --> 0:00:30.160 almost done. 0:00:30.280 --> 0:00:32.519 They won't move at the meeting after July. They'll take 0:00:32.560 --> 0:00:34.600 a break, just like they did this last time, and 0:00:34.640 --> 0:00:36.320 then we're going to get to November first. What was 0:00:36.320 --> 0:00:38.720 a long time between now and November first. I can 0:00:38.760 --> 0:00:41.360 imagine by that point it's possible that they'll see enough 0:00:41.400 --> 0:00:43.559 news that makes some confident that they've done enough. So 0:00:43.720 --> 0:00:47.240 I think November rate hike is really up for grabs 0:00:47.240 --> 0:00:47.800 at this point. 0:00:48.040 --> 0:00:50.720 Former New York Fed President William Dudley and investors have 0:00:50.760 --> 0:00:53.840 another inflation report to watch this morning, the Producer Price 0:00:53.880 --> 0:00:54.840 Index for June. 0:00:55.360 --> 0:00:55.880 Well, one of j. 0:00:56.040 --> 0:00:59.400 Powell's harshest critics is calling for the FED to stop 0:00:59.560 --> 0:01:02.960 raising rates. Nathan. We spoke yesterday after the CPI report 0:01:03.040 --> 0:01:05.760 with the Massachusetts Democratic Senator Elizabeth Warren. 0:01:06.880 --> 0:01:09.920 We have great news today that inflation has been cut 0:01:10.080 --> 0:01:13.800 by two thirds. So my message is take yes for 0:01:13.959 --> 0:01:17.640 an answer, Chair Pal, and let's stop with the rate increases. 0:01:18.120 --> 0:01:18.680 Done. 0:01:19.000 --> 0:01:21.760 And Senator Elizabeth Warren, who once called Powell a quote 0:01:21.880 --> 0:01:24.280 dangerous man to be running the Fed, made the comments 0:01:24.280 --> 0:01:27.360 on Bloomberg's balance of power here. More of that conversation 0:01:27.400 --> 0:01:28.679 a little later in the program. 0:01:28.760 --> 0:01:32.360 The economy is also in focus overseas. Karen UK's economy 0:01:32.440 --> 0:01:35.759 shrank less than expected in May. Gross domestic product fell 0:01:35.760 --> 0:01:38.360 a tenth of one percent after a two tenths percent 0:01:38.480 --> 0:01:39.399 gain in April. 0:01:39.640 --> 0:01:42.600 And in Asia, Nathan, China's exports fell for a second 0:01:42.640 --> 0:01:45.679 straight month in June. Exports decline twelve point four percent 0:01:45.720 --> 0:01:48.720 in dollar terms from a year earlier, while imports dropped 0:01:48.720 --> 0:01:52.040 six point eight percent. Exports the US fell almost twenty 0:01:52.040 --> 0:01:54.760 four percent. It's the eleventh straight month of declines. 0:01:54.880 --> 0:01:57.640 Well, China's activity online, Karen could be more to more 0:01:57.680 --> 0:02:00.720 pressure on relations with the US. Sources tell US Commerce 0:02:00.760 --> 0:02:04.040 Secretary Gina Ramondo's had her emails breached in a hack 0:02:04.120 --> 0:02:06.840 that came out of China. Amy Morris has the details 0:02:06.840 --> 0:02:09.399 from our Bloomberg ninety nine one newsroom in Washington. 0:02:09.840 --> 0:02:13.160 Officials E Commerce and the State Department were attacked. Described 0:02:13.200 --> 0:02:16.320 as targeted, The hackers were able to remain undetected for 0:02:16.400 --> 0:02:19.320 a month after gaining access to email data from around 0:02:19.400 --> 0:02:23.320 twenty five organizations. In mid May, weeks before Secretary of 0:02:23.360 --> 0:02:26.920 State Anthony Blincoln met with officials in China, Cyber Defense 0:02:26.960 --> 0:02:30.520 Agency SISA and the FBI issued a joint advisory urging 0:02:30.680 --> 0:02:34.919 organizations to harden their Microsoft three sixty five cloud environments. 0:02:35.200 --> 0:02:38.600 A Commerce Department spokesman declined to comment nor confirm the 0:02:38.600 --> 0:02:41.800 breach of Ramondo's emails, which was reported earlier by The 0:02:41.919 --> 0:02:45.799 Washington Post In Washington, I Mammy Morris, Bloomberg Daybreak. 0:02:45.520 --> 0:02:48.640 Amy, thank you. Still the two nations are taking steps 0:02:48.680 --> 0:02:52.000 to improve relations. Later today in Jakarta, Secretary of State 0:02:52.040 --> 0:02:55.799 Anthony Blincoln and China's top foreign policy official Wang Yee 0:02:56.120 --> 0:02:58.080 will hold their second talks in a month. 0:02:58.360 --> 0:03:01.360 Certain of corporate news Karen now Disney is extending the 0:03:01.400 --> 0:03:04.240 contract of CEO Bob Iger for another two years to 0:03:04.320 --> 0:03:08.360 twenty twenty six. Bloomberg's Ed Ludlow has more from sun Valley, Idaho, 0:03:08.400 --> 0:03:11.200 where Iiger is attending Allen in Companies annual conference. 0:03:11.800 --> 0:03:14.640 Iiger is the story of the Allen and Co. Conference 0:03:15.000 --> 0:03:17.920 twenty twenty three. It was interesting because he's here with 0:03:18.080 --> 0:03:21.640 Josh Tomorrow, who's Disney's parks chief, and Dana Walden, who's 0:03:21.680 --> 0:03:24.880 the TV chief, and both of those names have been 0:03:24.919 --> 0:03:29.360 touted as potential CEOs of Disney in the future. The 0:03:29.480 --> 0:03:33.639 turnaround story at Disney, the focus on cost reduction. Iiger's 0:03:33.680 --> 0:03:36.040 been at the heart of that, and there's been a 0:03:36.040 --> 0:03:38.640 lot of discussion about what will happen. Actually in the 0:03:38.680 --> 0:03:41.840 context of Hulu, Comcast retains a third of it but 0:03:42.000 --> 0:03:45.800 has the right per the agreement, to require Disney to 0:03:45.800 --> 0:03:47.560 buy out the rest of the stake. We haven't heard 0:03:47.600 --> 0:03:49.960 anything about that, but there are a lot of questions 0:03:49.960 --> 0:03:52.880 that people are asking Disney the main company this year 0:03:53.040 --> 0:03:56.120 that's in focus. Ed Ludlow from Some Valley, Idaho for 0:03:56.120 --> 0:03:56.920 Bloomberg News. 0:03:57.160 --> 0:03:59.200 All right, Ed, thank you well, Bob Iger is staying 0:03:59.240 --> 0:04:01.880 on the job. Hollywood actors might be about to walk 0:04:01.920 --> 0:04:05.000 off theirs, the Actors' union contract with movie and TV 0:04:05.080 --> 0:04:08.440 producers expired last night, now SAG after members will vote 0:04:08.480 --> 0:04:11.080 later this morning on whether to strike. Hollywood writers have 0:04:11.160 --> 0:04:13.000 been on the pick and line since May. If the 0:04:13.000 --> 0:04:15.160 actors joined them, it would be the first industry wide 0:04:15.280 --> 0:04:17.360 strike in Hollywood since nineteen sixty. 0:04:17.839 --> 0:04:21.440 Finally, four years after Jeffrey Epstein's death in prison by suicide, 0:04:21.520 --> 0:04:24.919 legal action against former banking executive Jess Staley is revealing 0:04:24.920 --> 0:04:28.960 a profound relationship between the pair. Bloomberg's Uwan Pots reports. 0:04:28.680 --> 0:04:31.279 I miss you. The world is a tough place hanging there. 0:04:31.720 --> 0:04:34.560 That's what Jess Staley wrote to Jeffrey Epstein in June 0:04:34.560 --> 0:04:37.799 two thousand and eight, a fortnight after Epstein was jailed 0:04:37.800 --> 0:04:40.960 and charges of soliciting prostitution from someone under the age 0:04:40.960 --> 0:04:44.039 of eighteen. A review of thousands of pages of documents 0:04:44.040 --> 0:04:46.760 and emails suggests the relationship between Epstein and the former 0:04:46.839 --> 0:04:51.200 JP Morgan executive went far beyond that of banker and clients. 0:04:51.320 --> 0:04:54.400 It points to regular and repeated contact, including trips to 0:04:54.440 --> 0:04:58.080 Epstein's properties and sharing tips on how to negotiate multimillion 0:04:58.120 --> 0:05:01.320 dollar salaries. The findings he also shows Staley wanted to 0:05:01.400 --> 0:05:04.440 keep Epstein's accounts at JP Morgan when other executives wanted 0:05:04.520 --> 0:05:07.760 him gone. JP Morgan's top lawyer wrote in twenty eleven 0:05:07.800 --> 0:05:10.599 that Epstein is not an nonall person in any way 0:05:10.720 --> 0:05:13.919 he should not be a client. The lawsuit, which alleges 0:05:14.000 --> 0:05:17.960 JP Morgan knowingly benefited from Epstein's sex trafficking, is scheduled 0:05:17.960 --> 0:05:21.000 for trial in October in London. I'm Une Potspin, Big. 0:05:20.880 --> 0:05:22.880 Day Break, thanks you, and in response to that story, 0:05:22.880 --> 0:05:26.000 as spokeswoman for JP, Morgan told Bloomberg quote, any association 0:05:26.080 --> 0:05:28.520 with Epstein was a mistaken in hindsight, we regret it, 0:05:28.520 --> 0:05:30.520 but we did not help him commit his heinous crimes. 0:05:30.600 --> 0:05:32.480 We would never have continued to do business with him 0:05:32.480 --> 0:05:34.920 if we believed he was engaged in an ongoing sex 0:05:34.960 --> 0:05:35.880 trafficking operation. 0:05:36.000 --> 0:05:36.480 End quote. 0:05:36.600 --> 0:05:40.440 Jess Staley's previously denied wrongdoing and knowledge of Epstein's sexual crimes. 0:05:40.440 --> 0:05:44.400 His lawyer declined to comment on this report. This is 0:05:44.480 --> 0:05:49.960 Bloomberg Time now for a look at some of the 0:05:50.000 --> 0:05:52.240 other stories making news in New York and around the world, 0:05:52.279 --> 0:05:54.720 and for that were joined by Bloomberg's Michael bar Good morning. 0:05:54.520 --> 0:05:58.040 Michael, Good morning. Nathan. President Biden is in Finland, NATO's 0:05:58.080 --> 0:06:01.119 newest member as he raps up his five day trip 0:06:01.160 --> 0:06:04.440 to Europe. Biden, while in Lithuania for the NATO summit, 0:06:04.560 --> 0:06:07.760 says now is the time that allies need to come together. 0:06:07.800 --> 0:06:09.360 After Russia invaded Ukraine. 0:06:09.640 --> 0:06:13.000 Today, our lines remains a bulwark of global security instability, 0:06:13.200 --> 0:06:17.080 as has been for more than seven decades. NATO is stronger, 0:06:17.800 --> 0:06:22.000 more energized, and yes, more united than ever in its history. 0:06:22.640 --> 0:06:26.080 Meanwhile, Turkish President race of Tia Bertawan vowed to speed 0:06:26.160 --> 0:06:29.880 up the ratification of Sweden's membership of NATO when his 0:06:29.960 --> 0:06:34.000 country's parliament returns from a two month summer recess. Funeral 0:06:34.040 --> 0:06:36.880 services take place today for one of the two Newark 0:06:36.920 --> 0:06:41.400 firefighters killed in last week's cargo ship fire at Port Newark. 0:06:41.760 --> 0:06:45.320 This morning's funeral for Augusto Akabub, who was forty five, 0:06:45.600 --> 0:06:48.560 will be held at the Cathedral Basilica of the Sacred 0:06:48.600 --> 0:06:51.840 Heart in Newark. Meanwhile, of viewing will be held at 0:06:51.839 --> 0:06:55.520 the same church tonight for the other firefighter killed. The 0:06:55.560 --> 0:06:58.920 funeral for Wayne Brooks Junior, who was forty nine, is tomorrow. 0:06:59.400 --> 0:07:03.120 Several NATO swept through areas west of Chicago last night. 0:07:03.440 --> 0:07:07.720 McCook Fire Chief David Delish, we have wires down throughout town. 0:07:08.240 --> 0:07:08.960 Poll snapped. 0:07:09.440 --> 0:07:11.880 We lost a couple structures as the roofer's bowling off 0:07:11.920 --> 0:07:12.400 this building. 0:07:12.680 --> 0:07:17.120 A tornado touchdown near Chicago's O'Hare International Airport, disrupting hundreds 0:07:17.160 --> 0:07:20.760 of flights. There were no immediate reports of injuries. After 0:07:20.840 --> 0:07:25.200 hearings on Capitol Hill, the FBI Agents Association issued a 0:07:25.200 --> 0:07:28.800 statement in support of Director Christopher Ray, saying despite he 0:07:28.880 --> 0:07:32.400 did political rhetoric, they will continue to handle themselves with 0:07:32.520 --> 0:07:37.240 professionalism and integrity. Ray, who was appointed by Donald Trump, 0:07:37.280 --> 0:07:40.880 test fight on Capitol Hill. He defended his agency against 0:07:40.920 --> 0:07:42.040 Republican attacks. 0:07:42.400 --> 0:07:47.480 Today's FBI leaders reflect the best of our organization, an 0:07:47.560 --> 0:07:50.240 organization that's made up of thirty eight thousand men and 0:07:50.280 --> 0:07:55.240 women who are patriots, professionals, and dedicated public servants. 0:07:55.280 --> 0:08:00.280 And that is the real FBI House. Republicans criticized that 0:08:00.440 --> 0:08:04.520 raise agency targets conservative Americans and was heavy handed in 0:08:04.600 --> 0:08:08.400 the FBI raid at Trump's mower Lago estate. Global News 0:08:08.440 --> 0:08:10.800 twenty four hours a day, powered by more than twenty 0:08:10.840 --> 0:08:13.440 seven hundred journalists and analysts in over one hundred and 0:08:13.440 --> 0:08:15.960 twenty countries. Michael Barr, This is Bloomberg, Nathan. 0:08:16.000 --> 0:08:22.920 Thanks Michael, time now for our Bloomberg Sports update here 0:08:23.000 --> 0:08:24.400 Sean Stshard, Thanks Dathan. 0:08:24.440 --> 0:08:27.640 Moving closer to that deadline day for Saquon Barkley at 0:08:27.640 --> 0:08:30.640 the Giants by four o'clock Monday, either Barkley has a 0:08:30.640 --> 0:08:33.120 new long term deal or he'll be forced to either 0:08:33.160 --> 0:08:36.040 plan on the franchise tag, make ten million or sit out, 0:08:36.080 --> 0:08:39.160 and there was an ESPN report that he is considering 0:08:39.240 --> 0:08:40.880 doing that at least for the start of the season. 0:08:40.920 --> 0:08:43.280 Barkley said to be looking to make fourteen million a year. 0:08:43.320 --> 0:08:46.079 That's what running backs Christian McCaffrey and Alvin Kamara earned, 0:08:46.120 --> 0:08:49.880 but Giants could have concerns with Barkley's injuries. Last season 0:08:50.000 --> 0:08:52.520 was his first healthy one since he was a rookie. 0:08:52.600 --> 0:08:54.960 Upset at the Gold Cup Soccer and San Diego US 0:08:55.040 --> 0:08:59.280 lost in the semifinals to Panama in penalty kicks, earliest 0:08:59.400 --> 0:09:02.080 US defeat the this event since twenty fifteen. And Wimbledon 0:09:02.440 --> 0:09:06.839 Women's semifinals. Today, two unseated players meet Alena Svidolina, she's 0:09:06.840 --> 0:09:11.000 already beaten four previous Grand Slam winners, and Marquete Andrewsova. 0:09:11.120 --> 0:09:14.160 She's beaten four seeded players she had never before advanced 0:09:14.440 --> 0:09:17.600 past the second round. Arena Sabolenka, who's from Belarus, was 0:09:17.640 --> 0:09:19.920 not allowed to play Wimbledon last year. She won the 0:09:20.000 --> 0:09:23.319 Australian Open earlier. This year, she's only lost one set 0:09:23.400 --> 0:09:27.640 so far, and today's Sabolenka takes on Tunisia's I'm Jeburg. Yesterday, 0:09:27.720 --> 0:09:31.120 Carlos Alcaraz advance with Danil Medvedev. He took out the 0:09:31.160 --> 0:09:34.480 American Chris Eubanks, who had a two set to one lead. 0:09:34.880 --> 0:09:37.480 When the Yankees return of the field tomorrow at Colorado, 0:09:37.520 --> 0:09:39.560 they'll have their new hitting coach, Sean Casey. 0:09:39.720 --> 0:09:42.280 I was a player for twelve years. There's not one 0:09:42.280 --> 0:09:44.000 moment where you don't think, men, I'd love to be 0:09:44.000 --> 0:09:45.600 in the pinstripes, like the. 0:09:45.679 --> 0:09:49.120 History, you know, the story franchise, all the players you 0:09:49.160 --> 0:09:51.560 know have an opportunity to wear the pinch stripes is 0:09:51.600 --> 0:09:53.400 just I think it's a dream for any player in 0:09:53.400 --> 0:09:54.000 this industry. 0:09:54.040 --> 0:09:56.880 Casey will try and improve the Yankees poultry team batty 0:09:57.000 --> 0:10:00.080 average of two thirty one. John stash Ellen Bloomberg. 0:09:59.720 --> 0:10:06.080 Sports from coast to coast, from New York to San Francisco, 0:10:06.400 --> 0:10:11.480 Boston to Washington, DC, nationwide on siriusxam the Bloomberg Business 0:10:11.480 --> 0:10:13.120 app in Bloomberg dot com. 0:10:13.280 --> 0:10:18.319 This is Bloomberg Daybreak. Good morning, I'm Nathan Hager. Elizabeth 0:10:18.360 --> 0:10:21.760 Warren is making a plea to Powell halt the raid hikes. 0:10:22.080 --> 0:10:25.160 The Democratic senator from Massachusetts joined our Joe Matthew and 0:10:25.240 --> 0:10:29.000 Kaylee Lines on Bloomberg's Balance of Power for an exclusive conversation. 0:10:29.520 --> 0:10:32.320 They covered an array of topics, including the Federal Reserve 0:10:32.440 --> 0:10:34.920 Chief Jerome Powell, as well as big banks and the 0:10:34.960 --> 0:10:38.000 Microsoft activision deal. Let's go to part of their conversation. 0:10:38.520 --> 0:10:43.600 If he stops the extraordinary rate increases that he's been doing, 0:10:44.000 --> 0:10:47.160 then we will have made it through this. We have 0:10:47.320 --> 0:10:51.120 great news today that inflation has been caught by two thirds. 0:10:51.520 --> 0:10:55.400 So my message is take yes for an answer, Chair Pal, 0:10:55.600 --> 0:11:00.360 and let's stop with the rate increases. Done well well, 0:11:00.440 --> 0:11:01.040 Senator Warren. 0:11:01.040 --> 0:11:04.560 Of course, monetary policy is only one responsibility of the 0:11:04.559 --> 0:11:07.000 federalers or the other is supervision. I know an issue 0:11:07.080 --> 0:11:09.000 very near and dear to your art, especially in light 0:11:09.040 --> 0:11:12.000 of the bank failures we have seen this year. The 0:11:13.240 --> 0:11:16.240 Vice share of Supervision, Michael Barr, has recently laid out 0:11:16.320 --> 0:11:21.520 proposals to strengthen capital requirements for the largest banks out there. 0:11:21.559 --> 0:11:25.079 Most importantly, are you satisfied with his proposal? And do 0:11:25.160 --> 0:11:27.400 you think he has the authority within the Federal Reserve 0:11:27.600 --> 0:11:28.240 to see it through? 0:11:28.760 --> 0:11:31.200 So let me invert those The answer is, he clearly 0:11:31.280 --> 0:11:34.400 has the authority to be able to put in higher 0:11:34.480 --> 0:11:37.959 standards and to be able to enforce those higher standards. 0:11:38.280 --> 0:11:41.240 And the second part is bar is headed in the 0:11:41.320 --> 0:11:44.559 right direction. Is it enough? No, we still have a 0:11:44.600 --> 0:11:47.080 lot of problems. We have too much concentration in the 0:11:47.080 --> 0:11:51.400 banking industry. We have more too big defailed banks than 0:11:51.440 --> 0:11:54.160 we did back when the economy crashed in two thousand 0:11:54.200 --> 0:11:57.440 and eight, and the two big defailed banks are bigger 0:11:57.480 --> 0:12:00.080 than they were back then. So you know, we're not 0:12:00.120 --> 0:12:02.320 out of the woods yet. But I feel a lot 0:12:02.440 --> 0:12:05.920 better when I read Michael Barr talking about how we 0:12:05.960 --> 0:12:08.880 need to tighten down on bank regulation. 0:12:09.120 --> 0:12:13.880 Go Michael, Senator, you held a hearing on bank insolidation today. 0:12:14.000 --> 0:12:17.360 Understanding your concerns about the big banks, as you just mentioned, 0:12:17.400 --> 0:12:21.280 too big to fail? How about small and medium sized banks? 0:12:21.280 --> 0:12:23.800 Should they be allowed to get married so they can 0:12:23.840 --> 0:12:25.200 better compete? 0:12:25.280 --> 0:12:28.560 So the problem that we have faced is of course, 0:12:29.120 --> 0:12:33.200 more and more concentration at the top, and always keep 0:12:33.200 --> 0:12:35.880 in mind the implications of that. One is obviously, too 0:12:35.920 --> 0:12:39.000 big to fail puts our entire economy at risk. But 0:12:39.080 --> 0:12:41.720 the other half is to remember that it is these 0:12:41.880 --> 0:12:45.720 small banks that are the ones that actually do the 0:12:45.800 --> 0:12:49.440 small business lending, and that drives our economy and it 0:12:49.520 --> 0:12:54.400 also drives employment. That these small businesses are the engine 0:12:54.440 --> 0:12:59.240 of our economy, and anything that wipes those banks out 0:12:59.520 --> 0:13:03.720 is bad idea. Finding ways to keep those banks open 0:13:04.240 --> 0:13:07.960 as independent or allied banks, I'm in favor of that. 0:13:08.720 --> 0:13:11.360 But the problem we've got is the big banks are 0:13:11.400 --> 0:13:14.480 the ones who come in snap up the little banks. Oh, 0:13:14.520 --> 0:13:17.800 they make a handful of promises about how nothing will change, 0:13:18.160 --> 0:13:22.200 and then those banks disappear, so that we now end up, 0:13:22.240 --> 0:13:25.240 for example, in a third of all rural counties in America, 0:13:25.800 --> 0:13:30.160 there is no small independent bank. There's nobody there who 0:13:30.360 --> 0:13:35.960 actually understands the local economy and who is willing to 0:13:36.040 --> 0:13:39.000 get to know the business that wants to borrow that 0:13:39.240 --> 0:13:44.240 money and sees that as their job in banking. That's 0:13:44.280 --> 0:13:46.920 not where the giants are. They don't do the small 0:13:46.960 --> 0:13:51.559 business lending. And that's the concern that I have about concentration. 0:13:53.120 --> 0:13:55.720 So we know you have concerns about concentration and concerns 0:13:55.720 --> 0:13:57.480 about some other issues that we do want to get 0:13:57.480 --> 0:13:59.280 with you. Senator first though, if I could ask you 0:13:59.320 --> 0:14:03.240 about a hearing you in prior to today. You have 0:14:03.280 --> 0:14:06.160 some concerns about Senator Tommy Tubberville in the blockade he 0:14:06.160 --> 0:14:09.520 has put on the promotions of members of the military. 0:14:09.600 --> 0:14:13.280 Given those concerns about how that affects military readiness in 0:14:13.320 --> 0:14:16.520 the US military families, what do you think you can 0:14:16.559 --> 0:14:20.480 do to blunt that impact? What workarounds do you see? 0:14:21.280 --> 0:14:24.040 So this is the problem we've got right now. You know, 0:14:24.120 --> 0:14:28.040 I am the chair of the Subcommittee on Personnel on 0:14:28.080 --> 0:14:32.000 the Senate Armed Services Committee, so I'm there on front 0:14:32.080 --> 0:14:35.520 lines hearing from the families who now are in a 0:14:35.560 --> 0:14:38.240 position saying where do we register our kids for school. 0:14:38.960 --> 0:14:42.280 I've heard from families who say, we've already sold our 0:14:42.360 --> 0:14:46.360 house because we thought we were moving this summer so 0:14:46.400 --> 0:14:49.080 that our active duty service member was going to be 0:14:49.160 --> 0:14:52.360 deployed somewhere else around the country or around the world. 0:14:53.000 --> 0:15:00.000 Profound impact on families, profound impact on our military readiness. 0:15:00.080 --> 0:15:04.880 Are former Secretaries of Defense, our current Secretary of Defense. 0:15:05.280 --> 0:15:08.760 Our former secretaries of Defense who are Republican appointees have 0:15:09.000 --> 0:15:14.920 all said this undermines military readiness. But here's the problem. 0:15:15.320 --> 0:15:19.720 The Democrats can't stop Tommy Tuberville from what he's doing. 0:15:19.960 --> 0:15:22.840 It is the Republicans who need to do this. The 0:15:22.920 --> 0:15:26.880 Republicans need to say, you are a member of our party, 0:15:26.960 --> 0:15:30.560 you are putting national security at risk, You are insulting 0:15:30.640 --> 0:15:34.520 and undermining military families in this country. Cut it out, 0:15:35.200 --> 0:15:39.160 because that's the only way we can unlock this hold 0:15:39.240 --> 0:15:43.960 and actually move through what is now literally hundreds of 0:15:44.120 --> 0:15:48.240 military promotions and assignments that are just dead in the 0:15:48.280 --> 0:15:49.240 water at this point. 0:15:50.240 --> 0:15:52.000 Yeah, we'd like to stay in touch with you on 0:15:52.040 --> 0:15:55.560 that story, Senator, with regard to your committee position, it's 0:15:55.600 --> 0:15:58.360 important to us and our viewers and listeners. I do 0:15:58.400 --> 0:16:00.880 want to ask you about something and some news that 0:16:00.920 --> 0:16:04.000 you and your colleagues are making today, releasing a report 0:16:04.160 --> 0:16:07.960 and calling on federal officials to investigate tech giants and 0:16:08.040 --> 0:16:12.280 namely Meta, the company behind Facebook, for somehow colluding. Maybe 0:16:12.280 --> 0:16:15.520 you can be more specific than I with the major 0:16:15.600 --> 0:16:18.480 tax preparers like H and R Block taking millions of 0:16:18.480 --> 0:16:23.720 people's personal and private information and giving it to Facebook, 0:16:23.800 --> 0:16:27.200 presumably to sell ads. If this is true, Senator, this 0:16:27.280 --> 0:16:29.240 is outrageous. Who's going to go to jail for this? 0:16:29.680 --> 0:16:33.680 So you ask exactly the right question. People went to 0:16:33.800 --> 0:16:37.880 tax preparers and, by the way, paid them to prepare 0:16:37.920 --> 0:16:40.560 their taxes, and then it turns around that the tax 0:16:40.640 --> 0:16:47.080 preparers gave access to all of this private information about 0:16:47.280 --> 0:16:51.239 names and dependents and whether or not you had medical expenses, 0:16:51.280 --> 0:16:56.040 all kinds of information to companies like Meta. Now we 0:16:56.080 --> 0:16:59.800 did the independent investigation. I did this with other Senators, 0:17:00.600 --> 0:17:02.960 and we send it over to the Department of Justice 0:17:03.160 --> 0:17:05.879 because there's federal law on this that no one is 0:17:05.920 --> 0:17:11.520 permitted to share tax information without the permission of the taxpayer, 0:17:11.560 --> 0:17:15.160 and I feel pretty clear that these tax companies did 0:17:15.280 --> 0:17:18.560 not get that permission. But I want to take this 0:17:18.600 --> 0:17:21.879 one more turn if I can. These are the same 0:17:22.119 --> 0:17:26.480 tax preparers who right now are lobbying right here in 0:17:26.680 --> 0:17:31.639 Washington trying to make sure that the IRS program to 0:17:31.760 --> 0:17:35.880 permit free filing, to let people just go to the IRS, 0:17:35.920 --> 0:17:39.040 go to a website, and if you've got pretty simple taxes, 0:17:39.080 --> 0:17:42.600 fill it out on the website and instantaneously you're done. 0:17:43.400 --> 0:17:46.719 Letting people do that. The tax preparers are trying to 0:17:46.760 --> 0:17:51.000 block the irs from doing that. Why because they break 0:17:51.160 --> 0:17:54.840 in the money every time somebody has to spend two 0:17:54.880 --> 0:17:57.800 hundred bucks or four hundred bucks or six hundred bucks 0:17:58.160 --> 0:18:01.040 to get one of them to prepare the taxes. You know, 0:18:01.240 --> 0:18:05.200 this really is back to that fundamental question whose side 0:18:05.320 --> 0:18:09.760 is government on and the taxpayers want government on their side. 0:18:10.920 --> 0:18:13.560 We're trying to get the government on the side of 0:18:13.600 --> 0:18:16.159 the taxpayers so they can do free filing and not 0:18:16.280 --> 0:18:19.320 have to worry about these companies that are giving their 0:18:19.400 --> 0:18:21.919 data a way to outfits like Meta. 0:18:23.359 --> 0:18:26.960 Well, as we talk about these companies, these large technology companies, 0:18:27.040 --> 0:18:29.720 other news came this week and that Lina CON's FTC 0:18:29.960 --> 0:18:34.640 was Delta blow in court on the Microsoft Activision Blizzard deal. 0:18:34.760 --> 0:18:37.680 Are you concerned, Senator, that the courts are going to 0:18:37.720 --> 0:18:40.639 steiny the efforts of competition regulators in the US. 0:18:41.280 --> 0:18:42.320 Look, I think. 0:18:42.119 --> 0:18:44.960 This is a bad decision. At the end of the day, 0:18:45.720 --> 0:18:49.879 the judge believed of Meta when they said, you know, 0:18:50.000 --> 0:18:51.600 we're going to do just fine and made a bunch 0:18:51.640 --> 0:18:54.199 of promises down the line for what they're going to do. 0:18:55.240 --> 0:18:58.959 That doesn't change the fact that the merger itself is 0:18:59.040 --> 0:19:02.439 not legal we have an opinion from the judge. I 0:19:02.560 --> 0:19:07.520 want to commend the FTC for taking on hard cases, 0:19:07.640 --> 0:19:12.679 taking on big companies, taking on cases that in the 0:19:12.760 --> 0:19:13.840 past often. 0:19:13.720 --> 0:19:14.600 Just slid through. 0:19:14.680 --> 0:19:18.800 Look at our clear violations of the law. I applaud 0:19:18.840 --> 0:19:22.520 what the FTC has done, and I say stay after it. 0:19:22.640 --> 0:19:25.159 Their job is to get out there and enforce the laws. 0:19:25.520 --> 0:19:29.119 And if sometimes a court just wants to head in 0:19:29.160 --> 0:19:32.640 a different direction, it doesn't change the fact that the 0:19:32.720 --> 0:19:37.240 FTC is right to promote competition and to enforce the 0:19:37.320 --> 0:19:38.520 law as it is written. 0:19:39.600 --> 0:19:39.760 Well. 0:19:39.840 --> 0:19:42.720 Lastly, then Senator, maybe we'll take it another step even 0:19:42.800 --> 0:19:45.920 further from there. As we talk about the idea of 0:19:46.480 --> 0:19:49.840 tech companies combining, or any companies for that matter, whether 0:19:49.880 --> 0:19:51.720 it's in the defense space or anywhere else that you 0:19:51.760 --> 0:19:56.120 have expressed concerns about. Is anyone talking about breaking up 0:19:56.280 --> 0:19:58.720 big tech if they are also too big to fail, 0:19:58.720 --> 0:20:01.879 whether it's Google or another company that you might have 0:20:01.960 --> 0:20:03.919 in mind. We've been down this road before with the 0:20:03.960 --> 0:20:05.800 aforementioned Microsoft. 0:20:06.240 --> 0:20:08.639 Yeah, you know, I think that talking about breaking up 0:20:08.640 --> 0:20:12.080 these companies is right, and particularly breaking off pieces of 0:20:12.119 --> 0:20:15.639 this company. You know, my favorite example here is Amazon. 0:20:16.119 --> 0:20:19.680 Look at what Amazon does. It runs the platform on 0:20:19.720 --> 0:20:23.960 which buyers and sellers come together, collects all that information, 0:20:24.680 --> 0:20:28.560 and then becomes a competitor on the platform that runs 0:20:28.600 --> 0:20:32.760 its own Amazon businesses, sometimes under the Amazon label and 0:20:32.880 --> 0:20:37.000 sometimes under labels that nobody would ever figure out that 0:20:37.000 --> 0:20:40.640 that's Amazon. To me, it's kind of like you could 0:20:40.680 --> 0:20:45.560 be an umpire in baseball, or you can have a team, 0:20:46.119 --> 0:20:48.879 but you don't get to do both at the same time. 0:20:49.480 --> 0:20:52.639 And so there's an example for me, those two should 0:20:52.680 --> 0:20:58.800 be broken apart. Concentration in industry after industry after industry 0:20:59.480 --> 0:21:01.800 is a threat to our economy. It is a threat 0:21:01.840 --> 0:21:06.960 to innovation and ultimately often leads to price gouging, whether 0:21:06.960 --> 0:21:10.520 it's consumers or the government. You mentioned the defense industry. 0:21:10.960 --> 0:21:14.240 Over the space of twenty years in America, we've gone 0:21:14.320 --> 0:21:20.440 from having fifty five competitors for those defense contracts down 0:21:20.560 --> 0:21:24.960 to five. And you know what they're looking for, even 0:21:25.040 --> 0:21:28.959 more consolidation. When a little business starts up, they do 0:21:29.000 --> 0:21:31.400 one of two things. They either smash it or they 0:21:31.400 --> 0:21:33.159 buy it up and put it into one of the 0:21:33.160 --> 0:21:35.680 big ones. And that's how it is that the United 0:21:35.680 --> 0:21:39.120 States government ends up paying three hundred and eighty five 0:21:39.160 --> 0:21:43.560 dollars for some valve that costs fifteen dollars off the shelf. 0:21:44.160 --> 0:21:48.840 We pay, and we pay through the nose. For concentration 0:21:49.520 --> 0:21:53.560 in the defense industry, in the banking industry, in big tech, 0:21:53.680 --> 0:21:59.360 in big pharma, and seeing the FTC, the DOJ Antitrust Division, 0:21:59.440 --> 0:22:02.199 and what we should be doing here in Congress is 0:22:02.320 --> 0:22:06.159 promoting competition. I believe in markets. I believe in the 0:22:06.280 --> 0:22:10.080 power of markets, but they only work if we enforce 0:22:10.160 --> 0:22:14.119 the rules that cape competitors going rather than monopolists. 0:22:16.760 --> 0:22:19.679 This is Bloomberg day Break Today, your morning brief on 0:22:19.720 --> 0:22:23.280 the stories making news from Wall Street to Washington and beyond. 0:22:23.560 --> 0:22:26.320