Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at
Speaker 1: noon and five pm Eastern on Apple, Cocklay and Android
Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever
Speaker 1: you get your podcasts, or watch us live on YouTube.
Speaker 2: You're now six and a half weeks into the Trump administration.
Speaker 2: Keeping in mind, this is a president who, during the
Speaker 2: first term of his presidency liked to use the stock
Speaker 2: market as a barometer of how he's doing. The barometer
Speaker 2: right now probably isn't sending ultra positive signals, though, and
Speaker 2: this is actually something that was asked of the Press
Speaker 2: Secretary Caroline Levitt during a briefing yesterday.
Speaker 3: President Trump has made clear, Caroline, but he loves tariffs,
Speaker 3: but the stock market does not.
Speaker 4: How does he factor that into his decision making.
Speaker 5: I think for folks on Wall Street who may be concerned,
Speaker 5: look at what this president did for you in his
Speaker 5: first term. Wall Street boomed, stock market boomed. The president
Speaker 5: expects that to happen again. But most importantly, Main Street
Speaker 5: is going to boom. And that's why the president has
Speaker 5: this whole of government economic approach, which includes tax cuts, tariffs,
Speaker 5: regulation cuts in an energy industry that will bring down
Speaker 5: costs for American consumers.
Speaker 4: Well, it just isn't happening yet.
Speaker 3: Markets have taken us on quite a round trip back
Speaker 3: in time to before the election. And that's where we
Speaker 3: start our conversation with Michael McKee, Bloomberg's International Economics and
Speaker 3: Policy correspondence with us from World Headquarters in New York. Michael,
Speaker 3: of course, you're forte is the economy. You can speak
Speaker 3: to the data today, whether it's the trade gap, whether
Speaker 3: it's challenger jobs. You know, the federal workers are going
Speaker 3: to start showing up in the jobs reports at some point,
Speaker 3: even if it's not in the monthly reading tomorrow. But
Speaker 3: what happened to animal spirits? I thought Wall Street was
Speaker 3: excited for this.
Speaker 4: That's a good question.
Speaker 6: I think basically where we are now is that the
Speaker 6: market got way ahead of itself and pe ratio went
Speaker 6: way up, and people started getting nervous about the possibility
Speaker 6: of something that would send the market lower. We had
Speaker 6: some disappointing earnings numbers from some of the biggest tech companies,
Speaker 6: and then you start to pile on all this other stuff,
Speaker 6: and people who are looking for black clouds are finding
Speaker 6: them on the horizon, and we certainly got some today
Speaker 6: With the economy. You mentioned the Challenger numbers. One hundred
Speaker 6: and twenty two thousand extra job cuts announced. Doesn't mean
Speaker 6: they'll all take place, but it caught Wall Street's attention,
Speaker 6: and we've had some other slow economic numbers this week,
Speaker 6: especially on the labor market front. So there's kind of
Speaker 6: a feeling out there that maybe this is a time
Speaker 6: when the economy is going to slow and that will
Speaker 6: push the markets down.
Speaker 2: But to Joe's point about when the reference date actually
Speaker 2: is for the jobs report, we're going to get tomorrow.
Speaker 2: Despite what we've seen in the Challenger figures, I believe
Speaker 2: that was up one hundred and three percent from the
Speaker 2: same levels last year. The DOGE cuts to the federal
Speaker 2: workforce are not going to really be evident in tomorrow's data, right, Mike.
Speaker 6: Now, if you remember, Kaylee, the Valentine's Day president that
Speaker 6: a lot of people in the federal government got from
Speaker 6: the administration was a notice that they were being fired.
Speaker 6: But that was the fourteenth, and that was the last
Speaker 6: day of the data survey period for the BLS in
Speaker 6: the month of February, So we're not going to really
Speaker 6: see a huge impact from what's happened since then you'll
Speaker 6: get a much bigger impact in the March numbers when
Speaker 6: we get to April. So tomorrow could be sort of
Speaker 6: a headfake in the sense that we may get relatively
Speaker 6: solid growth. And historically February is a reasonably strong month,
Speaker 6: seasonal month for job growth. So if that is the case,
Speaker 6: then maybe we see the markets rebound a little bit tomorrow.
Speaker 6: But as you mentioned at the top of the show,
Speaker 6: it's all the back and forth that's really making people
Speaker 6: crazy this point.
Speaker 3: So what is the thought at the moment here among
Speaker 3: economists on tariffs? And I'll I guess i'lask again in
Speaker 3: five minutes maybe when this changes.
Speaker 4: But we woke up to a.
Speaker 3: World this morning where there maybe wouldn't be all that
Speaker 3: many terriffs.
Speaker 4: The USMCA was there for a reason.
Speaker 3: I guess we'll acknowledge that with Mexico, we've already got
Speaker 3: autos carved out.
Speaker 4: With Canada. Is this getting better.
Speaker 7: Better?
Speaker 6: Being a relative term, it is fair enough getting a
Speaker 6: little lighter, put it that way. And now you know
Speaker 6: he said he told President Sheenbauma Mexico that they're not
Speaker 6: going to tear off anything that is covered under US
Speaker 6: MCA because Mexico doesn't tear of US under that and
Speaker 6: the same would be true for Canada. Although he hasn't
Speaker 6: announced it yet, there seems to be some sort of
Speaker 6: additional animus with the with the Canadians. But the problem
Speaker 6: is he's still talking about and his spokesmen are still
Speaker 6: talking about the idea of major tariffs coming on in
Speaker 6: the future, particularly this April second date. Howard Lutnik was
Speaker 6: out today talking about these are what we have now
Speaker 6: is just teentanyl related and the big tariffs are coming
Speaker 6: on April second. Scott Bessant the short time ago saying
Speaker 6: we're looking for the tariffs on April second to raise
Speaker 6: a lot of revenue. And so you can't plan. You
Speaker 6: just have to assume that something's going to happen and
Speaker 6: you don't know what.
Speaker 2: Well, you might not be able to plan, but maybe
Speaker 2: importers are able to hedge. I think that's what's evident
Speaker 2: in the trade balance data we got today. As I
Speaker 2: mentioned the deficit widening to a record, is the value
Speaker 2: of imports in January mic rows ten percent. What does
Speaker 2: that indicate about where inventories will be. Assuming these tariffs
Speaker 2: are ultimately implemented, and if they stick around for some time,
Speaker 2: how long will it be until companies actually have to
Speaker 2: start eating the costs of those imported goods given everything
Speaker 2: they tried to buy in advance, Well, most.
Speaker 6: Of the buying in advance seems to have been in
Speaker 6: industrial supplies, things that go into making other things, and
Speaker 6: so it maybe a little while. Metal products were a
Speaker 6: big category there, and that could imply metal products coming
Speaker 6: in from Canada that go into cars, and so maybe
Speaker 6: some of these dire predictions of how high car prices
Speaker 6: could go will be held off for a while. But
Speaker 6: they're also there was also a rise in consumer goods.
Speaker 6: Now it's not clear which kind yet, we don't know
Speaker 6: whether they meant bringing in clothing or toys or just
Speaker 6: what Those are lower dollar dollar values, so they may
Speaker 6: not have as much of an impact, but you're right
Speaker 6: it may postpone some of the pain for some time.
Speaker 6: Although when you talk to FED officials, as we talked
Speaker 6: to John Williams from the New York Fed earlier this week,
Speaker 6: so companies are saying they're prepared to take advantage of
Speaker 6: this if prices for their inputs go up, they're going
Speaker 6: to raise prices on American consumers.
Speaker 2: So we have that to look forward to, going to
Speaker 2: try to flex that pricing power. Bloomberg's Michael McKee, thank
Speaker 2: you so much. Of course, we'll be hearing more from
Speaker 2: the fedis in the aftermath of tomorrow's jobs report too.
Speaker 2: When Jerome Pale speaks tomorrow, certainly a conversation will all
Speaker 2: be listening for, and we'll have it on Bloomberg TV
Speaker 2: and radio. But joining us right now on Bloomberg, I'm
Speaker 2: pleased to stay on balance of power. From Capitol Hills,
Speaker 2: Republican Congressman Ryan Mackenzie, who represents Pennsylvania's seventh district congressman,
Speaker 2: thank you for joining Joe Matthew and myself. I would
Speaker 2: love to know your reaction to the pullback. It seems
Speaker 2: we're already getting to tariffs that were implemented just days ago.
Speaker 2: What good does this chaos serve for American companies and
Speaker 2: American consumers?
Speaker 8: Yeah, well, I think it's important that we shouldn't take
Speaker 8: tariffs off the table. They are an important tool in
Speaker 8: our toolbox of economic policy across the country. For far
Speaker 8: too long, they've actually been ruled out, and so I
Speaker 8: think it's appropriate that you put them on the table.
Speaker 9: Now.
Speaker 8: We are going through the negotiation process, which there always
Speaker 8: will be ups and downs. We've seen the reaction from
Speaker 8: the Mexican gut president recently saying that she appreciates the
Speaker 8: pull back in the tariffs because they're going to continue
Speaker 8: to work on things. Ultimately, the goal is to make
Speaker 8: sure that we actually do bring down these barriers that
Speaker 8: are impeding the flow of goods out of America, hurting
Speaker 8: American manufacturers, bring down those barriers for everybody across the board,
Speaker 8: and if we can get that reciprocal agreement, that'll actually
Speaker 8: be something that will be long term more beneficial for
Speaker 8: American consumers.
Speaker 3: In the meantime, Congressman, and welcome to Bloomberg. What should
Speaker 3: be the message to the markets here we're dealing with
Speaker 3: massive uncertainty in a stock market that has round tripped.
Speaker 3: We're all the way back now to where we were
Speaker 3: before the election. Is the message just hang on a
Speaker 3: little while better times are coming.
Speaker 10: Yeah.
Speaker 8: I think the message is that we do have to
Speaker 8: show some caution and restraint when we're making these wild moves.
Speaker 8: I think it's a little premature, and so you know,
Speaker 8: I heard recently talk about a potential recession. I was
Speaker 8: asked a question about that. That is a long term
Speaker 8: two quarters of negative GDP growth. We haven't even seen
Speaker 8: that yet happening in one quarter. So I think people
Speaker 8: just need to slow down. I think there are fluctuations,
Speaker 8: a lot of that we know is driven by uncertainty.
Speaker 8: We understand that, and so in Congress we're looking to
Speaker 8: take swift action. We have a budget that is going
Speaker 8: to start moving next week to meet the March fourteenth deadline.
Speaker 8: Also with reconciliation, we took that critical first step recently
Speaker 8: here in Congress, and we want to make sure that
Speaker 8: we get these things done as quickly as possible so
Speaker 8: that we can bring back certainty to the markets, show
Speaker 8: them that Congress can operate on these critical issues that
Speaker 8: are important for the American economy, American workers and actually
Speaker 8: get some results and help our entire country. So we
Speaker 8: want to make sure that we're doing that as quickly
Speaker 8: as possible. You've seen that action here in Congress from
Speaker 8: Speaker Johnson. When people said it was not going to
Speaker 8: be possible to get that first piece of legislation through
Speaker 8: the House, we were able to do it now it's
Speaker 8: in the Senate, and those negotiations are going to happen.
Speaker 8: So I think urging and so showing restraint, saying don't
Speaker 8: move too quickly one direction or the other. Continue forward.
Speaker 8: There are a lot of positive economic indicators out there,
Speaker 8: and when I talk anecdotally to businesses all across our economy,
Speaker 8: people are saying that they're still very optimistic about America's future,
Speaker 8: and so they want to move forward. I think the
Speaker 8: presidency with Donald Trump was a huge boon to business
Speaker 8: because they were concerned that if Kamala Harris was in there,
Speaker 8: they were going to have significant pressure coming from the
Speaker 8: government in all kinds of areas. So that optimism is
Speaker 8: still out there. I'm not discouraged at all. So I
Speaker 8: think we just need to wait for tomorrow's job numbers
Speaker 8: and continue to hold tight on the tariffs.
Speaker 2: On the steel industry, in particular in your state of Pennsylvania.
Speaker 2: What are you hearing from them, because we are expecting
Speaker 2: tariffs on steel and aluminum to go into effect next week.
Speaker 8: Absolutely, So look what we're hearing is that people actually
Speaker 8: do tout and credit some past terrrifaction for maintaining that
Speaker 8: activity here in Pennsylvania, and so that is rightfully, so,
Speaker 8: we've seen China dumping their products into the market for years,
Speaker 8: and this was one way to guard against that. Obviously,
Speaker 8: they've taken routes to get around some of those tariffs,
Speaker 8: and we want to make sure that we are continuing
Speaker 8: to protect not only industries that are critical to America's economy,
Speaker 8: but also to our national security. And steel and aluminum
Speaker 8: are two of those industries. We cannot have people like
Speaker 8: China dumping products in purely not just undercut the wages,
Speaker 8: but actually to discourage American activity in an American investment
Speaker 8: in national security related industries. So again, we need to
Speaker 8: make sure that we have that protection in place we're
Speaker 8: appropriate so that we can actually have a strong American economy.
Speaker 3: Well, Congressman, our viewers and listeners should know you represent
Speaker 3: the seventh Congressional district of Pennsylvania that's home to Allentown, Bethlehem.
Speaker 3: Bethlehem Steel closed a lot of years ago. Well, tariffs
Speaker 3: like these help to preserve the industry in your district.
Speaker 4: Is that your point?
Speaker 8: Well, what I would say is, again there are reasonable
Speaker 8: applications of tariffs again to protect industries when somebody is
Speaker 8: dumping a product I think is a reasonable approach when
Speaker 8: somebody is doing something to impact negatively our national security
Speaker 8: also appropriate. And so what we are looking for ultimately
Speaker 8: is long term not only free trade, but we want
Speaker 8: fair trade. And so many of these instances with our allies,
Speaker 8: they have been imposing tariffs on us, hurting American producers
Speaker 8: for many years, stopping the flow of our goods going
Speaker 8: into their country. And so what we want to see
Speaker 8: is we want to see these barriers come down across
Speaker 8: the markets for all of our allies, and ultimately that
Speaker 8: will help American producers. So I think it's a little
Speaker 8: bit of a red flag or red herring that is
Speaker 8: put out there when people say that this is directly
Speaker 8: going to hurt Americans by putting these tariffs on. I question,
Speaker 8: why then, does somebody like Justin Trudeau in Canada say
Speaker 8: that they're going to take reciprocal action by increasing tariffs.
Speaker 8: That defies logic that they would be doing something in
Speaker 8: response that would be a negative impact in hurting their
Speaker 8: home consumers as well. But what this is about is
Speaker 8: a negotiation that we are going through right now. I
Speaker 8: think it is long overdue that we have this discussion
Speaker 8: in conversation, because ultimately, we want our goods to go
Speaker 8: into other markets without those kind of barriers. We want
Speaker 8: there to be low tariffs that would help American producers,
Speaker 8: would create American jobs, which would raise American wages as well.
Speaker 8: So ultimately we're going to get there, but this process
Speaker 8: is a negotiation.
Speaker 2: And Congressmen, on a separate note, given your seat on
Speaker 2: the Committee on Education and the Workforce, there had been
Speaker 2: reporting today that the President this afternoon could sign an
Speaker 2: executive order for the dismantling of the Department of Education.
Speaker 2: The White House has pushed back on that notion a bit,
Speaker 2: but fundamentally, is that a job for the President of
Speaker 2: the United States or should that be left to you
Speaker 2: and your colleagues.
Speaker 8: In Yeah, so that would be something that should come
Speaker 8: through Congress. So we've heard the same reports, haven't seen
Speaker 8: the actual language on something like that if it's even
Speaker 8: going to happen. So again, ultimately that should reside in Congress,
Speaker 8: and we're going to make sure that on education in
Speaker 8: the workforce, we do everything that we possibly can to
Speaker 8: protect American workers, promote education, skills, trainings, workforce development. We
Speaker 8: need all of that in this era because as markets
Speaker 8: are transitioning. We want to make sure that our workers
Speaker 8: and our economy is best suited to compete globally.
Speaker 3: Congressman, we've only got a minute left. I don't want
Speaker 3: to set you up to have to cut you off,
Speaker 3: but we're nine days out. Will we avoid a government shutdown?
Speaker 3: Will you have the cooperation of your full conference and
Speaker 3: maybe a couple Democrats to keep the lights on.
Speaker 8: I'm confident that we are going to avoid a shutdown,
Speaker 8: And the reason for that is because I think, as
Speaker 8: we just talked, when changes are being made via executive
Speaker 8: action in executive order, in many instances, those are things
Speaker 8: that actually need to be put into LEDGIS. So right
Speaker 8: now where we are as a conference is that we
Speaker 8: believe any of these changes that need to be done legislatively,
Speaker 8: that takes a lot of time. So we need to
Speaker 8: slow down on some of those things and ultimately give
Speaker 8: ourselves the breathing room the ability to put that into
Speaker 8: a budget if we choose to do that in September
Speaker 8: or the end of the year, and so a continuing
Speaker 8: resolution would bridge that gap get us to that point
Speaker 8: later in the year where we could make those decisions.
Speaker 8: So again, I think We're going to avoid the shutdown
Speaker 8: now and then consider Thomas Horn.
Speaker 3: Ryan mackenzie, Republican from Pennsylvania. Come see us again. This
Speaker 3: is Bloomberg.
Speaker 1: You're listening to the Bloomberg Balance of Power podcasts. Catch
Speaker 1: us live weekdays at noon and five pm Eastern on
Speaker 1: Apple Cockley and Android Auto with the Bloomberg Business App.
Speaker 1: You can also listen live on Amazon Alexa from our
Speaker 1: flagship New York station. Just say Alexa play Bloomberg eleven
Speaker 1: thirty over.
Speaker 2: We are live in Washington, where things are changing fast,
Speaker 2: at least when it comes to the narrative around tariffs.
Speaker 2: As yes, President Trump has said at least until April second,
Speaker 2: Mexico and goods under the USMCA agreement will be exempt
Speaker 2: from the twenty five percent tariff that was just implemented
Speaker 2: on Tuesday, as he talked about Tuesday night. But he
Speaker 2: also on Tuesday night reiterated that April second is still
Speaker 2: the date that reciprocal tariffs will go into place, which
Speaker 2: is why Mexico's reprieve could end up being short lived.
Speaker 2: And who knows at this point about Canada. But on
Speaker 2: the subject of what we heard from the President Tuesday night,
Speaker 2: his voice. Of course, Joe was not the only one
Speaker 2: that was heard in the House chamber during that addressed
Speaker 2: to a joint session of Congress. At times there were
Speaker 2: boos and shouts of lives from Democrats, but none more
Speaker 2: vocal than Democratic Congressman Al Green of Texas, who actually
Speaker 2: had to be escorted from the House floor.
Speaker 3: Yeah, he was thrown out of the House and now
Speaker 3: censured formally, which is a pretty remarkable moment. Going back
Speaker 3: to Joe, Wilson was not formally censured. There was a
Speaker 3: reprimand following the ulied moment, but people were really upset
Speaker 3: about this. And the part that's got my attention is
Speaker 3: less the outcome of the vote, more the fact that
Speaker 3: ten Democrats.
Speaker 4: Voted for censure.
Speaker 3: Here now Democrats, or some of them, are at least
Speaker 3: just singing we shall overcome in the well of the
Speaker 3: Senate while Tom Swazi, Marie Glusen Camp, several others.
Speaker 4: Here, Jim Himes, Jim Heins.
Speaker 3: Tommy Barras surprised me a little bit, but in some cases,
Speaker 3: looking to make a point, Kaylee, they thought the protest
Speaker 3: was inappropriate.
Speaker 2: Yeah, keeping in mind the Democratic leadership had signaled to
Speaker 2: members in advance of Trump's address that they needed to
Speaker 2: keep their cool. Remained stoic as the President spoke clearly
Speaker 2: that is not actually the outcome that we saw.
Speaker 3: Well, we're not going to do the whole panel on this,
Speaker 3: but we do want to get our panelist view here
Speaker 3: because it just happened. John Seaton, a Republican strategist, is
Speaker 3: back with us today CEO founder Echo Canyon Consulting, alongside
Speaker 3: Brad Howard, the force behind the Corcoran Street Group here
Speaker 3: are democratic strategist.
Speaker 4: Great to have both of you, gentlemen with us here.
Speaker 3: Brad talked to me ten Democrats, what were they thinking
Speaker 3: when they voted to CenTra al Did this need to happen?
Speaker 7: No? No, the cincher did not need to happen.
Speaker 11: I mean, it's ridiculous because of what we saw when
Speaker 11: Biden was president. Uh and you know, between Marjorie Taylor
Speaker 11: Green and Lauren Bobert and going on all the way
Speaker 11: back to Joe Wilson, you know, uh, he's just outrageous
Speaker 11: and Marie and uh, Marjorie Taylor Green did it several
Speaker 11: times throughout Biden's speech, and the last one. It wasn't
Speaker 11: just like a one off thing. So No, the center
Speaker 11: did not need to happen. But however, if I were
Speaker 11: a chieve of staff to a moderate blue dog member
Speaker 11: of Congress or a new DIM, I would have said, yes,
Speaker 11: vote to censure, like because you shouldn't do that, and
Speaker 11: like the Democrats have got to have a reconcilt, Like
Speaker 11: we've got to reconcile if we're gonna be the party
Speaker 11: that's consistently defending kind of like the not morallity, but
Speaker 11: like the kind of good behavior, the professionalism and being
Speaker 11: members of Congress of you know, what the Republicans are
Speaker 11: doing is shredding decency and et cetera.
Speaker 7: Then we've got to call out things like this.
Speaker 11: And when you look at it in a vacuum, did
Speaker 11: he do something he shouldn't have done?
Speaker 7: Yes?
Speaker 11: Did he stop when they asked him to do? No,
Speaker 11: Therefore he was removed and should be censured. And Mike,
Speaker 11: I get that that's unpopular thing on the left because
Speaker 11: of the hypocrisy, but like you've got to take these
Speaker 11: things at the moment in time.
Speaker 7: It's a political game, like it's you know, and like,
Speaker 7: don't do that again. M hmm.
Speaker 2: Happen well, And regardless of the reason though John our
Speaker 2: censure is getting a little too popular in the modern
Speaker 2: day House of Representatives.
Speaker 12: You know, I I do think that it loses its
Speaker 12: its impact or its import after after it's kind of
Speaker 12: used as a tool so much. And and the one
Speaker 12: thing I think maybe some people myself included forgot about
Speaker 12: a President Trump is that things move so fast. I'm
Speaker 12: guessing that Congressman Green, this censure, et cetera will be
Speaker 12: will be forgotten in in in very short course. Having
Speaker 12: said that, I mean, I do believe the bread. I
Speaker 12: agree with Brad that it's it's difficult. Democrats are in
Speaker 12: a difficult position. And look, I've been on the other
Speaker 12: side of a trifectus, so it can be very very
Speaker 12: challenging when you're the minority party to kind of figure
Speaker 12: out the right way to respond to policies and actions
Speaker 12: that you strongly disagree with. But if Democrats really do
Speaker 12: want to be the party that is at the kind
Speaker 12: of the party of norms and of governance, I think
Speaker 12: they really do need to do what they can to
Speaker 12: kind of shut down the kind of behavior that we
Speaker 12: saw on Tuesday night.
Speaker 3: Well, the fact of the matter is they'll probably be
Speaker 3: raising money on it, probably already is because that's what
Speaker 3: Center does.
Speaker 4: For you now, it makes you money.
Speaker 3: I want to ask you both about the budgeting process
Speaker 3: that's underway right now in the presence of Elon Musk.
Speaker 3: He was on the Hill to meet with members of
Speaker 3: both chambers yesterday and we spoke with a Senator Capito,
Speaker 3: Shelley Moore, Capito, Republican from West Virginia. Following her luncheon
Speaker 3: on the Senate side with Elon Musk, he then had
Speaker 3: dinner with House members.
Speaker 4: Here's what she said.
Speaker 13: We just had lunch and Elon Musk was there, and
Speaker 13: if you listen to him, logically talk about some of
Speaker 13: the waste, fraud, and abuse that they found in systems
Speaker 13: such to Social Security, where fifteen people are getting paid
Speaker 13: off the same number, or fifteen checks are being sent
Speaker 13: off the same number, things that are make total common sense.
Speaker 13: This is where I think DOGE has been extremely helpful
Speaker 13: and will continue to be and even more so.
Speaker 3: Brand I'll tell you though, you look at the wall
Speaker 3: of receipts and the trophies keep coming down, and I
Speaker 3: wonder if they've found enough money to save to make
Speaker 3: a difference in legislation. We don't even have to debate
Speaker 3: the doge or the authority of Elon Musk or the
Speaker 3: rest of it. Will they have the goods to help
Speaker 3: save money this budget season?
Speaker 11: Well, look, let's be clear why they want to save
Speaker 11: money here. They want to save money so they can
Speaker 11: cut federal services for that people depend on to give
Speaker 11: tax cuts two billionaires. That's the whole point. We're trying
Speaker 11: to find these savings. But keep in mind, like the
Speaker 11: issue here is not I think what a lot of
Speaker 11: Democrats are frustrated by, and I'd say a lot of
Speaker 11: you're starting to see it at town halls from the
Speaker 11: average Americans too. It's not that they're cutting spending though
Speaker 11: I think there are some Democrats that oppose that, don't
Speaker 11: get me wrong, But I think a bulk of the
Speaker 11: bulk of Americans that were said about it, how they're
Speaker 11: doing it when you're gutting things like closing Social Security
Speaker 11: offices and gutting VA benefits. Uh. You know, the people
Speaker 11: that benefited the most from DEI hiring policy in the
Speaker 11: federal government were veterans. If you're a veteran, you bumped
Speaker 11: to the front bury top of the pack of the
Speaker 11: pole of resumes because you have you come with the
Speaker 11: security clearance.
Speaker 7: Typically you've been had of review.
Speaker 11: You you know, they have a lot about your information
Speaker 11: about you already, and you come with a specific skill
Speaker 11: set and you understand government, so you're a great hire.
Speaker 11: A ton of veterans got laid off and is that
Speaker 11: really the people we want to And even.
Speaker 7: The White House advisor she said.
Speaker 11: That they're questioning whether or not they even have the
Speaker 11: capability or capacity to have a job at this moment,
Speaker 11: which was incredibly insulting for veterans across the country. And
Speaker 11: by the way, veterans come from their service with this
Speaker 11: stigma that they're not quite adjusting to the private sector,
Speaker 11: which is part of the hurls they have in getting jobs,
Speaker 11: which is why the federal government said, if the private
Speaker 11: sector won't hire, you.
Speaker 7: Come to us.
Speaker 11: And so you've got it's a mess there how you're
Speaker 11: supposed to respond to these doze emails and job things.
Speaker 11: I got a buddy that works with FBI. He's like,
Speaker 11: it's so funny to watch. We'll get the elon Musk
Speaker 11: email and then next we'll get the cash Betel email
Speaker 11: and then like it's just a mess. I don't think
Speaker 11: anyone thinks this process has been efficient. I get they're
Speaker 11: trying to get efficiencies, but we haven't seen it yet.
Speaker 11: And by the way, you can't trust the numbers they're
Speaker 11: putting out. They're claiming eight billion when it was eight million.
Speaker 11: They're claiming people were on the payroll getting Social Security
Speaker 11: when they were two hundred, even though they were in
Speaker 11: the row rosters. There's an automatic cutoff at one hundred
Speaker 11: and twenty five. So like, they're kind of misrepresenting a
Speaker 11: lot of stuff here. And when you don't have an
Speaker 11: independent or other branch of government confirming this information, which
Speaker 11: is what Congress typically does, or to inspector general or GAO,
Speaker 11: then we're just having to take their word for it.
Speaker 11: And already they're full of inaccuracies and misstatements and lies.
Speaker 7: So, you know, I don't know what to think here.
Speaker 11: I welcome efficiencies, obviously, but this process has been anything
Speaker 11: but efficient.
Speaker 2: Well in the process, John is running into a little
Speaker 2: bit of a headwind. Headwind in our judicial system. You
Speaker 2: look at the Supreme Court ruling on usaid from yesterday,
Speaker 2: in which Chief Justice John Roberts and Conservative Justice Amy
Speaker 2: Coney Barrett ruled against the administration. We're seeing plenty of
Speaker 2: DOGE oriented or forcing DOGE pauses or rulings that it's
Speaker 2: not following the law in the lower courts as well.
Speaker 2: And we know that one of the things that senators
Speaker 2: shared in the room with Elon Musk yesterday is that
Speaker 2: he needs Congress to implement some of these cuts. He
Speaker 2: cannot do it alone or he's going to run into
Speaker 2: court challenges. Do you think there's going to be a
Speaker 2: recognition of that in the administration moving forward. Are they
Speaker 2: just going to keep plowing ahead and leaving it up
Speaker 2: to the judges to decide.
Speaker 10: No.
Speaker 12: Look, I think the ultimate goal is going to stay
Speaker 12: the same, which is to find efficiencies to remove waste,
Speaker 12: fraud and abuse to ultimately save American taxpayers money in
Speaker 12: areas where there is perceived to be an overreach, there
Speaker 12: is a judicial system in place, there is a Republican
Speaker 12: majority in Congress. So I do think that progress will
Speaker 12: continue to be made to find some of these kind
Speaker 12: of egregious examples of waste fraud and brute abuse.
Speaker 11: And listening to.
Speaker 12: You know, democratic members of Congress and senators talk negatively
Speaker 12: about this and say, at the same time, while we
Speaker 12: all want efficiency, that's fine, but when there was a
Speaker 12: democratic trifecta not that long ago. I don't recall a
Speaker 12: whole lot of actions being taken to look for some
Speaker 12: of these inefficiencies to look for some of this waste,
Speaker 12: frauden abuse, and so yeah, Elon Musk is very very aggressive.
Speaker 14: He's a very very.
Speaker 12: Smart guy, and he is going to you know, push
Speaker 12: as far as he possibly can. Where checks are needed,
Speaker 12: those will come into you know, will come into place.
Speaker 12: But I think the goal is ultimately going to stay
Speaker 12: the same, and I don't think DOGE as a concept
Speaker 12: is going anywhere as long as President Trump is in office.
Speaker 3: Remarkable headline here is the the GSA brad pulls more
Speaker 3: than four hundred and forty real estate sites off the
Speaker 3: market that had been put up for sale, some of
Speaker 3: them clearly should not have been on the list, as
Speaker 3: Bloomberg reports.
Speaker 4: The inventory of.
Speaker 3: Properties included a specialized satellite facility for Noah, a three
Speaker 3: million square foot FDI research lab and this is a
Speaker 3: new one in Northern Virginia campus. I don't know if
Speaker 3: you saw this, Kayley that does not appear in federal
Speaker 3: property records because of its association and use by the CIA.
Speaker 3: They apparently outed a black op site in northern Virginia. Brad,
Speaker 3: what should be the fallout from this?
Speaker 11: Well, I mean, this is my point, right, just like
Speaker 11: it's sloppy, it's the best. The The reason and the
Speaker 11: two reasons are going this fast, right is because number one,
Speaker 11: they've got to get the savings ahead of the end
Speaker 11: of the fiscal year so they can give them, they
Speaker 11: can pull these services and give them to billionaires. And
Speaker 11: they've got to do that by September thirtieth, that's the
Speaker 11: end of the fiscal year. And conversely, his special Elon
Speaker 11: Musk's special employment designation runs out I think in like
Speaker 11: one hundred and third and twenty days, so he's got
Speaker 11: to finish it before that.
Speaker 7: But this, look, this.
Speaker 11: Is why there are processes in place to review these things.
Speaker 7: This is why the cuts typically take a long time.
Speaker 11: Is because there's so many sensitivities to Americans personal and
Speaker 11: private data, to our nation's secrets, to all this stuff.
Speaker 11: We've got to keep in mind that when you rush
Speaker 11: through and you're letting twenty two year olds run the thing,
Speaker 11: they don't have the capacity to understand that and take
Speaker 11: it all into account, all.
Speaker 2: Right, Brad Howard and John Seaton, our political panel today.
Speaker 2: Thank you both so much for joining us on this
Speaker 2: Thursday in which we're seeing a deep cell off in
Speaker 2: the equity market. Stocks now at the lowest level since
Speaker 2: before election Day. We'll have more on that ahead on Bloomberg.
Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch
Speaker 1: us live weekdays at noon and five pm Eastern on
Speaker 1: almal Cockley and Android Otto with the Bloomberg Business app.
Speaker 1: Listen on demand wherever you get your podcast, or watch
Speaker 1: us live on YouTube.
Speaker 2: I am, indeed Kaylee lines alongside Joe Matthew in Washington
Speaker 2: where we are closely following the story on tariffs, the
Speaker 2: story on Department of Government efficiency, how all of it
Speaker 2: is translating into the economic data we're seeing, and how
Speaker 2: that's feeding through to what Charlie was just talking about.
Speaker 2: The markets today, the equity markets certainly not having a
Speaker 2: good one. And as Charlie promised, Nora me, Linda is
Speaker 2: here with us for more. She covers the stock market
Speaker 2: for Bloomberg. So, Nora, do we assign this to the
Speaker 2: data we're getting to the uncertainty around tariff policy, which
Speaker 2: arguably actually improved today with the at least delay of
Speaker 2: tariffs or over pri from tariffs on Mexico until April. Second,
Speaker 2: what actually is up here?
Speaker 9: Well, Kaylee, this has truly been a very dizzying news cycle.
Speaker 9: As you clearly laid out here, we've got traders looking
Speaker 9: at not only economic data, but also they're monitoring these
Speaker 9: headlines that we're getting throughout the day about what the
Speaker 9: outlook for terrorifts might be and what the outlook could
Speaker 9: be for a potential global trade war. Here in some
Speaker 9: ways it feels like the federal reserves passed path forward
Speaker 9: is the last thing on trader's minds. We've got volatility
Speaker 9: really being the name of the game. We have analysts
Speaker 9: that are really pointing toward this idea that volatility seems
Speaker 9: to be the only certainty right now as we look
Speaker 9: at what things could look forward. If we look at
Speaker 9: the volatility index, the VIX index, that's Wall Street's fear gauge,
Speaker 9: it's sitting above the twenty handle at about twenty five
Speaker 9: right now. So that really tells you what investors are
Speaker 9: thinking right now.
Speaker 3: What are the analysts saying looking at the vics. It's
Speaker 3: the one green spot on my screen here of fifteen
Speaker 3: percent here, Norah back above twenty five. Are analysts telling
Speaker 3: clients to cool their heels, just wait or sell.
Speaker 9: Well, Joe, I mean, that's really the question here. When
Speaker 9: you look at so many different areas of the market,
Speaker 9: there is a lot going on, But if we take
Speaker 9: a look under the hood, what's really been the uncertain
Speaker 9: point has been the tech sector. So we are seeing
Speaker 9: a pretty strong sell off in tech stocks today, and
Speaker 9: that's all kind of couch in this idea that what
Speaker 9: is the AI intelligence boom going to look like moving forward,
Speaker 9: especially as we think about deep seek of the news
Speaker 9: that came weeks ago, and then now as we're thinking
Speaker 9: about what the outlook could look like in terms of
Speaker 9: how Chinese companies are really boosting their AI and whether
Speaker 9: or not a lot of these US companies can stay
Speaker 9: afloat and stay in play.
Speaker 11: Here.
Speaker 2: I want to ask you as well, Nora, because I
Speaker 2: know you cover home builders specifically, about what we've been
Speaker 2: seeing in rates which have actually moved lower, and you're
Speaker 2: seeing a pickup in mortgage applications. Mortgage rates themselves have
Speaker 2: moved down substantially. Is that translating into some positivity at
Speaker 2: least in the home oriented sectors of the market, And
Speaker 2: is that expected to continue.
Speaker 9: Frankly, well, Kelly, it's really mixed. I mean, as you mentioned,
Speaker 9: we do have some data that is a bit positive,
Speaker 9: if you can call it positive. When I last look
Speaker 9: more stiggage rates, we're sitting at about six point eight percent.
Speaker 9: But funnily enough, it's actually one of the more recent
Speaker 9: lows that we've seen when you think about mortgage rates.
Speaker 9: But as we think about the home building industry more broadly,
Speaker 9: we actually had Seaport Global Research at least a report
Speaker 9: where they actually upgraded home builders are seeing a twenty
Speaker 9: seven percent upside when we think about the outlook for
Speaker 9: the industry. But I mean, if you ask the average
Speaker 9: person and whether or not they're really interested in taking
Speaker 9: on a thirty year mortgage rate right now with the
Speaker 9: high rates, of course, the answer is a bit uncertain.
Speaker 4: All right, Nora, thank you so much.
Speaker 3: From world headquarters in New York, Normal Linda, Bloomberg Stock
Speaker 3: Market Reporter really helps to set the baseline for us
Speaker 3: for the conversation we're going to have next with Nathan
Speaker 3: Dean from Bloomberg Intelligence. Because tariffs are in the air today,
Speaker 3: we don't know exactly how this is going to land.
Speaker 3: With Canada, but Mexico's got the exemption. Canada has a
Speaker 3: partial exemption, at least with regard to auto's. Scott Besson,
Speaker 3: the Treasury Secretary, talked about it this morning at the
Speaker 3: Economic Club of New York.
Speaker 10: People say, oh, tariffs are very are a regressive tax?
Speaker 10: That well, are they a regressive tax if you then
Speaker 10: use the income from tariffs to no tax on tips,
Speaker 10: no tax on social Security, no tax on overtime, making
Speaker 10: auto own tax deductible. Those four policies with President Trump
Speaker 10: put forward during the campaign, all a crew to the
Speaker 10: bottom fifty percent of wage earners and working Americans.
Speaker 3: As we turn to the senior US policy analyst at
Speaker 3: Bloomberg Intelligence, Nathan Dean, whose phone has been ringing clients
Speaker 3: who have terminal subscriptions want to know what to do next.
Speaker 4: And boy, Nathan, great to see you again. You were
Speaker 4: here just yesterday.
Speaker 3: Because this keeps changing, you obviously can't make plans. The
Speaker 3: question is do you throw it all out because this
Speaker 3: market is back to where we were before the election.
Speaker 15: You know, we've been actually been coined this the Shokonhaf
Speaker 15: strategy for tariffs. I mean President Trump did this with
Speaker 15: his executive orders, and it looks like he's doing this
Speaker 15: with tariff's as well.
Speaker 14: He makes a statement, he makes a you.
Speaker 15: Know, we're going to put tariffs on Canada, Mexico. We're
Speaker 15: going to go twenty five percent. Well, then we delay
Speaker 15: it for thirty days. Well, then we're actually going to
Speaker 15: put it forth, and then now we're going to have
Speaker 15: an exemption for USMCA goods, like Award Lutnik was saying today,
Speaker 15: Mexico's now delayed till April second. So what we're telling
Speaker 15: our clients is that you have to prepare for these tariffs,
Speaker 15: but you also have to prepare for the scenario that
Speaker 15: they maybe a day or two later, you get this
Speaker 15: headline that says that, nah, maybe we're going to pare
Speaker 15: it down a little bit. But you know, there's a
Speaker 15: lot of uncertainty that's still coming with this. But what
Speaker 15: we do think is going to happen is April second,
Speaker 15: reciprocal tariffs are going to come. But then within the
Speaker 15: days after April second, then you'll see whatever negotiations take
Speaker 15: place and something that could potentially get into the White
Speaker 15: House to scale that back.
Speaker 2: Well, so I feel like we've asked this question of
Speaker 2: political strategists this idea that do we run into a
Speaker 2: boy who cried wolf scenario eventually where it stops working
Speaker 2: as a negotiating tactic when everybody sees that you're willing
Speaker 2: to pull tariffs back and the threat doesn't last very long.
Speaker 2: And I wonder if it could be true for market
Speaker 2: participants as well, that they just stopped taking him at
Speaker 2: his word on tariff threats until they actually see it
Speaker 2: in action. They no longer try to discount that.
Speaker 15: Yeah, and absolutely, I mean I think I think there
Speaker 15: are several people and then look, I know I've talked
Speaker 15: to several people in the last week that are taking
Speaker 15: that view as well, that look, these tariffs are never
Speaker 15: going to happen. We have this debate within BI, you know,
Speaker 15: just whether or not on odds, But you know, you
Speaker 15: have to prepare for him because there's only one person
Speaker 15: in this world that decides whether or not these tariffs
Speaker 15: go forward, and it's President Trump. And we have yet
Speaker 15: to meet a Trump whisper that can predict at one
Speaker 15: hundred percent certainty what is going to happen here. So
Speaker 15: you have to prepare scenario analysis, and that starts with
Speaker 15: preparing for these tariffs with the idea that potentially could
Speaker 15: come back, because look, we may do this on April first,
Speaker 15: and we may now have an extension of May first.
Speaker 14: We just don't know, but you still have to prepare.
Speaker 10: Well.
Speaker 3: We're seeing a lot of front running ahead of any
Speaker 3: potential tariffs taking effect. And I don't want to try
Speaker 3: to fold you into being an economist here, but are
Speaker 3: you getting questions about this the increasing potential say for
Speaker 3: a week second half, because so much business was done
Speaker 3: to try to get ahead of the tariffs.
Speaker 15: You know, at the tail end of twenty twenty four,
Speaker 15: the number one question I got, whether it was New York, London, Berlin, wherever,
Speaker 15: was when is the United States going to deal with
Speaker 15: the deficit? And that question remains today, and the question
Speaker 15: is said, are this year? I mean, but the question
Speaker 15: is you have Doge, you have tariffs, and you also
Speaker 15: have the House Republican plans to extend tax reform, which
Speaker 15: you know, assuming they use the baseline, could cost somewhere
Speaker 15: between four point five and even potentially higher. And so
Speaker 15: I think traders are looking at this holistically and they're
Speaker 15: trying to figure out, Okay, when is Washington going to
Speaker 15: get serious about the deficit?
Speaker 14: My response always back.
Speaker 15: To the trader, is you tell me when you get
Speaker 15: you know, get worried, and we begin to see market moves.
Speaker 2: So the vigilantes need to come out.
Speaker 15: Well, we just haven't seen anything yet, and Washington is
Speaker 15: still going to proceed down this path. So you know,
Speaker 15: tariffs is a catalyst that's happening right now. You have
Speaker 15: the debt ceiling coming this summer that potentially could change
Speaker 15: the fixed income debate a.
Speaker 14: Little bit, and then you have the House Republican tax
Speaker 14: reform at the end.
Speaker 15: But at the end of the year, I'm still not
Speaker 15: one hundred percent confident that the deficits can be resolved well.
Speaker 2: And before we even get to the debt ceiling or
Speaker 2: budget reconciliation, there's a shutdown looming potentially in just over
Speaker 2: a week, and no clear sign yet that they have
Speaker 2: a definitive plan that they know can pass to avert
Speaker 2: at Nathan, where are your odds right now?
Speaker 15: So I don't think that definitive plan is going to
Speaker 15: come until maybe March thirteenth, that like you know, ten
Speaker 15: pas etalent. But what we are telling our clients is
Speaker 15: we are at a forty percent chance of a shutdown
Speaker 15: assuming the Republicans push forward a clean CR. I don't
Speaker 15: think the Democrats are going to be able to stomach
Speaker 15: a shutdown if the Republicans push forward this clean CR.
Speaker 15: If the Republicans push forward a plan that codifies DOGE
Speaker 15: cuts or includes policy writers, then the odds.
Speaker 14: Of that shutdown go up to sixty percent.
Speaker 15: I just don't think that there's really much in the
Speaker 15: way that like shutdowns are usually caused because both parties
Speaker 15: go into that debate thinking that their position is the
Speaker 15: one that's politically advantageous. I'm not exactly sure the Democrats
Speaker 15: are in that position right now, So I wouldn't be
Speaker 15: surprised if this kid's kick the can down a month
Speaker 15: or maybe a little bit later.
Speaker 14: I do think there is going to be.
Speaker 15: A long shutdown sometime in the first two years of
Speaker 15: the Trump presidency.
Speaker 14: I'm just not sure it's going to be March.
Speaker 4: That's interesting, I guess encouraging.
Speaker 3: That's not something the market would probably respond to very
Speaker 3: well right now. The uncertainty over tariffs, the uncertainty over
Speaker 3: debt ceiling, now you can't even keep the lights on.
Speaker 4: What would be the market reaction.
Speaker 15: Well, you have to remember from government shutdowns from the
Speaker 15: market perspective, there really isn't any We put the same
Speaker 15: note out that says, look, there's really no impact even
Speaker 15: for defense contractors psychologically. Well, that's where the dead ceiling
Speaker 15: comes into play. I mean, going back to this mom
Speaker 15: versus Dad thing that we've talked about in this program
Speaker 15: a long time ago. Traders want Washington to remember that
Speaker 15: they want to get things done. Traders in New York
Speaker 15: want Washington to be able to get things done. And
Speaker 15: if you have a shutdown that goes a couple of weeks,
Speaker 15: that's not going to bode well for the dead sealing
Speaker 15: crisis because the debt I don't want to call it
Speaker 15: crisis the debt ceiling issue, because if Republicans pull it
Speaker 15: out of the reconciliation plans, as we suspect, the debt
Speaker 15: ceiling is going to require seven Democrats to go along
Speaker 15: with it. It's going to have to be a bipartisan affair.
Speaker 15: I don't think you're going to see a dead ceiling breach.
Speaker 15: We have an eighty percent chance that the issue has
Speaker 15: resolved before.
Speaker 14: That X date.
Speaker 15: But Washington needs to provide, in the eyes of the traders,
Speaker 15: a little bit of maturity, and you know, even though
Speaker 15: there's no impact from the shutdown, if there is discord,
Speaker 15: that potentially could bleed into the fixed income issues this summer.
Speaker 2: Well, and I would imagine breeding agencies take note as well.
Speaker 2: If we all recall, while we didn't actually breach the
Speaker 2: dead ceiling last time, the United States still got downgraded.
Speaker 2: It's just not seen as credit worthy given the political
Speaker 2: drama around this.
Speaker 14: Yeah, absolutely, I mean, and look, I mean they're.
Speaker 2: As credit worthy. I should stay still credit worthy, like
Speaker 2: entirely full faith and credit.
Speaker 15: But I mean that's an excellent point. There's a lot
Speaker 15: of questions, and especially we see this. You know, I
Speaker 15: was talking to our FX chief rates strategists this morning
Speaker 15: and we were talking about how are Americans and how
Speaker 15: are non Americans across the world viewing the dollar and
Speaker 15: very viewing the euro and the pace on the Canadian dollar,
Speaker 15: and a lot of this credibility goes into the currency argument.
Speaker 15: So you know, I certainly don't want to downplay that.
Speaker 15: We don't think anything's going to happen. Headline risk is
Speaker 15: headline risk for a reason. But I would just say
Speaker 15: is that, you know, it's just more angst and anxiety
Speaker 15: rather than an actual catalyst that we.
Speaker 14: Can point to.
Speaker 3: We've got a crypto summit at the White House tomorrow,
Speaker 3: not just David Sachs, but a number of other CEOs
Speaker 3: and investors' stakeholders, and I guess the optics that will
Speaker 3: make good on this administration's pledge to lean into crypto.
Speaker 3: Last time we spoke was about this idea of a
Speaker 3: national reserve, after the President put forth any number of
Speaker 3: potential tokens that could be involved here, not just bitcoin.
Speaker 4: Will that be reinforced tomorrow?
Speaker 7: I think so.
Speaker 15: I think I actually don't think you're going to see
Speaker 15: a lot come from the White House tomorrow. I think
Speaker 15: it's gonna be more driven by the industry participants, and
Speaker 15: I think they're just going to air a lot of
Speaker 15: the talking points that we've seen before. You know, one
Speaker 15: of the biggest questions when it comes to this bitcoin reserve,
Speaker 15: is it a bitcoin reserve or is it a crypto reserve?
Speaker 14: Is Solana in there is XRP and there he answer
Speaker 14: that though, well, I mean President Trump.
Speaker 15: Said that he wants to view it as a currency,
Speaker 15: you know, market capitalization fund with all these different currencies
Speaker 15: in there. But that's not exactly what a lot of
Speaker 15: folks in the crypto world want they want it to
Speaker 15: be bitcoin because bitcoin is the one that's most decentralized,
Speaker 15: and bitcoin is the one that's most you know, available
Speaker 15: for or institutional usage.
Speaker 14: And so I think you're gonna see these talking points
Speaker 14: coming out tomorrow.
Speaker 15: I'm not exactly sure the White House is going to
Speaker 15: offer much a because they don't want to correct President
Speaker 15: Trump if they feel differently.
Speaker 14: And B again, there's one person driving this at the moment,
Speaker 14: and it's President Trump.
Speaker 2: Really quickly before we let you go, Nathan, stable coin
Speaker 2: legislation obviously in both chambers, it's moving forward. I believe
Speaker 2: markups could happen as soon as next week. How quickly
Speaker 2: do you think that ultimately could get done as it will?
Speaker 15: I think it's probably some between May and July. I think,
Speaker 15: you know, look, we have favorable odds on this seventy percent.
Speaker 15: The problem with the stable coin language, if you can
Speaker 15: call it a problem, is that it sometimes gets sucked
Speaker 15: into this bigger idea of crypto legislation. And if people
Speaker 15: start trying to boil the ocean as opposed to that
Speaker 15: one lake, then the stable coin, this legislation could get pushed.
Speaker 2: Off, all right, Nathan Dean of Bloomberg Intelligence, thank you
Speaker 2: so much as always for joining us. It's going to
Speaker 2: be a big datamorrow, not just for the White House
Speaker 2: Crypto Summit, but no doubt also you know the little
Speaker 2: thing called the Non farm Payrolls Report.
Speaker 3: It will be jobs Day actually, yes, indeed, and I'll
Speaker 3: be curious to see how the White House spins the numbers.
Speaker 3: Were not expecting, as we told you earlier in our
Speaker 3: conversation with Michael McKee, much of an impact from the
Speaker 3: federal layoffs. The federal worker layoffs challenger makes it pretty
Speaker 3: clear today though they're coming, it just might be another month.
Speaker 3: By the way, how's Malania coin doing. We didn't ask
Speaker 3: Nathan Dean about that. That have to check seventy seven
Speaker 3: cents we're at top out about nine dollars.
Speaker 4: That won't be in the National leser.
Speaker 2: No, probably there might be some concerns about having that.
Speaker 4: That wasn't on the list. Thanks for listening to the
Speaker 4: Balance of Power podcast.
Speaker 3: Make sure to subscribe if you haven't already, at Apple, Spotify,
Speaker 3: or wherever you get your podcasts, and you can find
Speaker 3: us live every weekday from Washington, DC at noontime Eastern
Speaker 3: at Bloomberg dot com.