Speaker 1: Now from our nation's capital. This is Bloomberg Sound On.
Speaker 1: I and my country look forward to a very productive
Speaker 1: few days together. Semi conductors, engines of them words. Floomberg
Speaker 1: Sound On Politics, policy and perspective from DC's top names.
Speaker 1: I will work every single day to make sure that
Speaker 1: Stacy Arams is never your governor. You think that John
Speaker 1: assautins Biden one, fair and square. That's the difference between
Speaker 1: the two of us. This is gonna be a Davos
Speaker 1: unlike any we've seen Thomas. It's no different Joe than
Speaker 1: the Plumber's Convention in Las Vegas. Bloomberg Sound On with
Speaker 1: Joe Matthew on Bloomberg Radio. Joe Biden visits Asia for
Speaker 1: the first time as president. Welcome to the fastest hour
Speaker 1: in politics as we follow the trip to South Korea
Speaker 1: and Japan, all with an eye on China. The pivot
Speaker 1: to Asia is actually happening, and we'll talk about it
Speaker 1: with Anna Ashton of the Asia Society Policy Institute. Can
Speaker 1: Congress get anything done from now to November? The chip back,
Speaker 1: maybe COVID funding. We'll discuss in our Friday Reporters round
Speaker 1: Table with Bloomberg's mckinnery and Jack Fitzpatrick, and later the
Speaker 1: elite descending on Davos this weekend, among them Bloomberg's own
Speaker 1: Tom Keane, who joins us later for a special conversation
Speaker 1: about a most unusual World Economic Forum this year. President
Speaker 1: Biden kicked off his trip to Asia today South Korea,
Speaker 1: where he met with that country's new president, spoke at
Speaker 1: a Samsung computer chip plants, actually the company's biggest foundry,
Speaker 1: which will be replicated in Texas under a previously announced deal.
Speaker 1: So this was all put together with the reason President
Speaker 1: Biden spoke to the growing need for semiconductors here he
Speaker 1: is this is an auspicious start to my visit because
Speaker 1: it's emblematic of the future cooperation innovation that our nation's
Speaker 1: can and must build together. Semiconductor's power our economies and
Speaker 1: enable our modern lives, from our automobiles to our smartphones,
Speaker 1: to medical diagnostical equipment. And reminding us the President has
Speaker 1: well multiple audiences on this trip. As always, he talked
Speaker 1: about the jobs your he is in Asia. He talked
Speaker 1: about the jobs that Samsung is bringing to the US.
Speaker 1: We'll create three thousand new high tech jobs in Texas
Speaker 1: and add to add to twenty thousand jobs Samsung already
Speaker 1: supports in the United States of America, and he spoke
Speaker 1: with support from the company itself. It was a big show.
Speaker 1: They had the stage set up, the big backdrop. Lee
Speaker 1: J Young is the vice chairman of Samsung. Listen. Over
Speaker 1: a quarter century ago, Samsung became the first international company
Speaker 1: to make semi conductors in the United States. We highly
Speaker 1: value our friendship and look forward to continuing our spatial relationship. Okay,
Speaker 1: the special relationship. The president's trip will continue through Tuesday.
Speaker 1: It's got a formal visit to Japan, meetings the leaders
Speaker 1: of the Quad. This is important. Actually while he's in Tokyo,
Speaker 1: big meeting of the Quad. Right US, Japan, Australia, India
Speaker 1: added to the conversation, So what's the point of all
Speaker 1: of this? Well, war rages in Ukraine were joined to
Speaker 1: try to answer that question by Anna Ashton, Senior Fellow
Speaker 1: for Trade, Investment and Innovation at the Agia Society Policy Institute.
Speaker 1: Thank you for being with us, Anna, I want to
Speaker 1: talk to you about the elephant in the room here,
Speaker 1: a country the President is not visiting on this trip,
Speaker 1: and a country that's going to be watching this trip
Speaker 1: very closely, of course, that's China. Does Beijing see this
Speaker 1: as a threat? Well, I think certainly the statements out
Speaker 1: of Beijing UH in the last week to indicate that
Speaker 1: that they view this as UM at least antagonistic, if
Speaker 1: not a threat, and UH with good reason, you know,
Speaker 1: because the Quad is basically an alliance with a mutual
Speaker 1: interest encountering UH some of China's policies, So UH to
Speaker 1: have Biden in the region, visiting its neighbors and talking
Speaker 1: about issues that are contrary to China's interests UM. Yes,
Speaker 1: that's kind of the point of it though, right the
Speaker 1: reason this whole pivot to Asia was too to face
Speaker 1: the threat from China. But it's a very complicated relationship.
Speaker 1: China is not only threatening us, they're also partnering with
Speaker 1: us on an economic level. I realize a good deal
Speaker 1: of that has been undone. UH. So you know, what's
Speaker 1: the what's the unspoken conversation that's happening. What's the actual
Speaker 1: message we're trying to send? Well, you know, I think
Speaker 1: we're trying to send several messages. I think we're trying
Speaker 1: to to sort of recoup our losses in terms of
Speaker 1: UM perceptions of US. Globally as being interested in engaging
Speaker 1: with the world and leading the world. So this, like
Speaker 1: Biden's efforts in Europe, is partly about reinvigorating our partnerships
Speaker 1: in the region and showing that we're still there. It's
Speaker 1: also about showing that we can be in two theaters
Speaker 1: at once. With Ukraine taking up so much of our attention,
Speaker 1: it's important to remind the end of Pacific region that
Speaker 1: we consider ourselves part of that region and we want
Speaker 1: to UH to be partnering to I guess boost the
Speaker 1: kinds of practices and standards that we believe are the
Speaker 1: right practices and standards in the twenty first century. To
Speaker 1: what extent is the apparent expansion of NATO informing China's
Speaker 1: view of all of this. You know, your president she
Speaker 1: and Beijing watching what's happening in Europe here, it's like,
Speaker 1: whoa US rising? This is not the last administration. They're
Speaker 1: adding Finland and Sweden. Now, this guy's on his way
Speaker 1: to meet with the quad. UH kind of in our
Speaker 1: backyard here is that the concern that this is going
Speaker 1: to be a sort of a growing presence that the
Speaker 1: United States will have in that part of the world. Well,
Speaker 1: you know, a few years ago, I wouldn't have said
Speaker 1: that that would be top of mind for China. But
Speaker 1: China has a certainly backed Vladimir Putin's concerns about the
Speaker 1: spread of NATO, and there has been lots of analysis
Speaker 1: in the United States about whether or not the Russian
Speaker 1: invasion of Ukraine is a model for success or failure
Speaker 1: for for China and Taiwan. Um. You know, I do
Speaker 1: think that part of the point of being in the
Speaker 1: region and shoring up our security relationships is to deter
Speaker 1: any interest on China's part in and possibly moving on Taiwan.
Speaker 1: Whether or not it's likely as a separate question, but
Speaker 1: but I don't think that it's likely that that China
Speaker 1: is about to move on Taiwan though, so I don't
Speaker 1: think that that's that's an imminent thing. Sure, the other
Speaker 1: regional threat is North Korea, and they're talking about apparently
Speaker 1: a nuke test this weekend. Do you think that happens
Speaker 1: and is this just a lonely man making noise here
Speaker 1: or is this, you know, a real threat to the
Speaker 1: United States, a military threat the US has to be
Speaker 1: concerned about. I guess the reality is that we are
Speaker 1: in the middle of UH an enormous geopolitical power shift. UM.
Speaker 1: The center of global economic activity is rapidly shifting to Asia.
Speaker 1: China is rising as an economic and military power and
Speaker 1: has different ideas in many respects about what the rules
Speaker 1: of the road should be. In international relations, the United
Speaker 1: States is trying to reassert its interests and shore up
Speaker 1: relationships that can support those interests. And you know, we
Speaker 1: have countries like North Korea and Russia that are testing
Speaker 1: in the waters. Do you are you concerned about it? Thor?
Speaker 1: I guess you know? Is it? Is it all bluster?
Speaker 1: Because so far, of course, that's all we've ever seen
Speaker 1: UH and and things have changed a bit since Donald
Speaker 1: Trump was dancing around the d m Z with Kim Jong.
Speaker 1: I mean, I'm not a North Korea expert, I have
Speaker 1: to I have to admit, but I my inclination is
Speaker 1: to believe that it's it's primarily bluster. However, you know,
Speaker 1: when we have instability and and UH a land war
Speaker 1: in Europe, UM, we have to take these sorts of
Speaker 1: things little bit more seriously. And Ashton, let's talk policy
Speaker 1: for a minute. Remembering that President Trump pulled out of
Speaker 1: the Trans Pacific Partnership, a twelve nation partnership negotiated by
Speaker 1: President Barack Obama. Joe Biden's expected to win veil. I
Speaker 1: guess what they're calling the Indo Pacific Economic Framework this weekend,
Speaker 1: which is also being called a watered down version of
Speaker 1: the Trans Pacific Partnership. Is there any point to this
Speaker 1: or is this, you know, kind of a chance to
Speaker 1: sign some papers and pose for a picture. Certainly, UH,
Speaker 1: as part of our pivot to ASA, we have been
Speaker 1: emphasizing that we want to have stronger security and political
Speaker 1: relationships with various countries in the region, but we have
Speaker 1: been a little bit slow to talk about the importance
Speaker 1: of economic relationships. And there are numerous developing economies in
Speaker 1: the region that would really like to have stronger economic
Speaker 1: relationships with the United States. But what they're envisioning is
Speaker 1: greater market access reduced to tear us those sorts of things,
Speaker 1: and that's not really part of what we're expecting to
Speaker 1: hear unveiled when President Biden announces the end of Pacific
Speaker 1: Economic Framework. Spending time with Anna Ashton, Senior Fellow for Trade,
Speaker 1: Investment and Innovation at the Asia Society Policy Institute, as
Speaker 1: President Biden continues the travel through Asia China watching of course, Anna,
Speaker 1: as we've already discussed, but I'd like to ask you
Speaker 1: about Russia as well. In China's relationship with Russia, there
Speaker 1: is word that China is going to buy Russian oil.
Speaker 1: For instance, it was a it was a screamer headline
Speaker 1: on the terminal earlier today. That's a pretty bold move
Speaker 1: based on the conversations that Joe Biden himself has had
Speaker 1: with President she. Well, you know, China imports an awful
Speaker 1: lot of energy from Russia, and UH, and and Europeans
Speaker 1: do too. I think, UH, we have yet to roll
Speaker 1: out and embargo on energy that involves secondary sanctions against
Speaker 1: countries that are importing energy from Russia. So they're non
Speaker 1: they're not necessarily consequences that will follow immediately from China
Speaker 1: join us. But it does underscore the point that China
Speaker 1: is not the only country that relies on Russia for
Speaker 1: a variety of things. So does India as part of
Speaker 1: the Quad, and that is um a challenge for Biden
Speaker 1: as he tries to um make sure that we are
Speaker 1: aligned with our major partners across the world and making
Speaker 1: sure that the sanctions are effective all very important elements
Speaker 1: here that that you're pointing out in it is do
Speaker 1: you do you, however, see the lines kind of being
Speaker 1: drawn between you know, this allied China, Russia and the
Speaker 1: Western World or is that oversimplifying it them? For now?
Speaker 1: I think it's oversimplifying it. I don't think that's what
Speaker 1: the United States really wants or what China really wants.
Speaker 1: It's certainly not in the world's best interest if we're
Speaker 1: going to try to address common challenges like climate change, pandemics,
Speaker 1: food and security resulting impart from from the invasion of Ukraine. Um,
Speaker 1: but you know, it is a risk as as the
Speaker 1: power balance shifts. What's the statement is to speak? The
Speaker 1: mission statement? Uh from the Quad meeting? How important is
Speaker 1: that going to be next week? I think that partly
Speaker 1: depends on whether or not Australia participates. But you know what,
Speaker 1: I think they've got elections this weekend right exactly, especially
Speaker 1: they have elections, and depending on how that turns out,
Speaker 1: we mayry not have somebody there. Exactly what is it
Speaker 1: going to be an aggressively written statement? Is there is
Speaker 1: you know you already pointed out that that this is
Speaker 1: an important group here. What's the message to China. You know,
Speaker 1: I don't expect it to be h overtly and extremely
Speaker 1: aggressive visa of each China, but I do want to
Speaker 1: point out that Anthony Lincoln was supposed to give his
Speaker 1: his speech on China policy last week and that is
Speaker 1: coming soon. So I and Ashton many thanks for your insights.
Speaker 1: The Asia Society Policy Institute will be following the President
Speaker 1: for you on Bloomberg across the weekend and in the
Speaker 1: next week coming up, we turned to Capitol Hill and
Speaker 1: our Friday Reporter round Up. This is Bloomberg, This is Bloomberg,
Speaker 1: So nong with Joe Matthew on Bloomberg Radio. Thanks for
Speaker 1: sharing part of your Friday with us on Bloomberg Radio.
Speaker 1: With a special nod to our listeners on satellite radio.
Speaker 1: Thanks for being the year. It's time for our Reporters
Speaker 1: Round Up with Bloomberg National Politics reporter E mckinnery and
Speaker 1: Bloomberg Government's Jack Fitzpatrick. No stranger to this program. Welcome
Speaker 1: to both of you. Thanks for having us. So it's
Speaker 1: it's not many weeks we have something to show for
Speaker 1: lawmakers being in town in Washington, but the Senate at
Speaker 1: last cleared the Ukraine funding bill. The House move legislation
Speaker 1: on baby formula and domestic terrorism. Jack, I'm gonna start
Speaker 1: with you. A lot of people are asking is that it?
Speaker 1: And I know we've asked this before. Can Congress do
Speaker 1: anything else between now in November? Knowing that they've still
Speaker 1: not come together on something you're writing about, which is
Speaker 1: COVID funding, not to mention that China competes bill. What
Speaker 1: do you think? Yeah, I I don't think that's it.
Speaker 1: From the accomplishments of Congress between now in the midterms,
Speaker 1: they've got really high priority issues. The Chips bill, the
Speaker 1: China Competitiveness Bill is a major priority. It's a huge
Speaker 1: conference committee between the House and Senate with more than
Speaker 1: a hundred members, and they're still seemingly sort of in
Speaker 1: the spitballing phase of how much do we want to
Speaker 1: get into tax policy? So it's not right at the
Speaker 1: finish line, but it clearly is a priority. Uh. There
Speaker 1: is interest in the issue of the f d A.
Speaker 1: Do they make changes at the FDA to follow up
Speaker 1: on this baby formula shortage that's a new issue too,
Speaker 1: giving them more money. Yes, well, that that conversation is
Speaker 1: happening too. But there's a lot of interest in actual accountability. Uh.
Speaker 1: And of course they have to fund the government, and
Speaker 1: anytime they do that, that is a vehicle so they
Speaker 1: can attach things to it. So they've got more legislating
Speaker 1: to do for sure. Funding lost. That one is so stalled.
Speaker 1: It is really something. It's stalled over the Title forty
Speaker 1: two immigration issue. UH. I think maybe out of desperation,
Speaker 1: there's a little bit of talk among Democrats. Gary Peters
Speaker 1: has brought this up that if they can't figure out
Speaker 1: a Title forty two deal on that pandemic policy that
Speaker 1: let them expel people from the border faster, maybe they
Speaker 1: could do a border security spending measure that would probably
Speaker 1: not win over Republicans because some of the resources they
Speaker 1: need to spend on are because of the end of
Speaker 1: Title forty two anyway, So Republicans really are just saying
Speaker 1: we should bring this back for now or come up
Speaker 1: with something, and that has just latched itself onto the
Speaker 1: COVID bill and it's it's very very stalled right now.
Speaker 1: But what's the national appetite for this, not just here
Speaker 1: in Washington but nationally When the White Houses is ringing
Speaker 1: the alarm to say we're running out of tests, we're
Speaker 1: gonna be running out of therapeutics, and we are now,
Speaker 1: we're beyond many of the deadlines that Jen Psaki laid
Speaker 1: out when she was still Press secretary. The President said
Speaker 1: we needed twenty two billion dollars. They cut it in half.
Speaker 1: That still can't move. Does this ever see the light
Speaker 1: of day or we're gonna find ourselves with a surge
Speaker 1: in in the fall and winter in the White House
Speaker 1: being blamed from there not being enough therapeutics. I mean,
Speaker 1: if you look at it, there's arguments that it's a
Speaker 1: sturge right now. Um, yeah, a third of Americans right now,
Speaker 1: the um CBC staid yesterday, I live in an area
Speaker 1: where they should be wearing masks based on the COVID risk.
Speaker 1: I think that, like Jacket said, we'll see if it
Speaker 1: gets through Congress. We'll see if it gets passed. But
Speaker 1: I think that people there is a lot of a
Speaker 1: great need for it. Does it seem like a set up? Though?
Speaker 1: This is like you know, Lucy with the football, You
Speaker 1: can see how this is going to play out. But
Speaker 1: that's the other thing is that, like you know, they
Speaker 1: have to show between now and November that they're doing
Speaker 1: stuff and that they're like trying to accomplish things even
Speaker 1: if it doesn't actually happen. How much of that is
Speaker 1: executive order though versus legislation. Well, they are running out
Speaker 1: of money though, and so they're gonna need action from
Speaker 1: Congress on COVID. At least these are right sources, especially
Speaker 1: for the international stuff. There is bipartisan agreement that there
Speaker 1: should be some uh international vaccine in a that kind
Speaker 1: of thing. Uh. And again you know that's why I
Speaker 1: mentioned they'll need to fund the government. So this is
Speaker 1: way too slow for the White House's taste, but they
Speaker 1: could have an annual funding conversation. If this supplemental Immediate
Speaker 1: bill just never happens, They've got to do something. Uh.
Speaker 1: The issue is they have been very very slow. Yeah,
Speaker 1: they sure have. And I we just remember, oh Macron
Speaker 1: and in the the amount of blame that the White
Speaker 1: House carried for not having enough rapid tests available. Emma,
Speaker 1: you remember all this. It's like you can just see
Speaker 1: it happening again. Yeah, and Ron Klain just um you know,
Speaker 1: said yesterday they're already sending out more tests to people.
Speaker 1: You can request them. But they're really trying to get
Speaker 1: ahead of the curve on the China competes bill. It's
Speaker 1: not lost on me that Gina Romando, the Commerce Secretary,
Speaker 1: has really been the face of this story, helping to
Speaker 1: push this along, at least publicly, is representing the administration
Speaker 1: at the Davos conference, which will strangely have no snow
Speaker 1: this year. Um, where does that stand? We've been talking
Speaker 1: about it for a year, Jack, and my god, you
Speaker 1: put a hundred people in a room. How does anyone
Speaker 1: decide any thing? Yeah, well, that's the main challenge. You know,
Speaker 1: every time I ask lawmakers about this bill. It clearly
Speaker 1: is a priority. That's probably the one main thing that
Speaker 1: they are working on that there seems to be some
Speaker 1: confidence they really could get something done on that's not
Speaker 1: sort of annual government funding or annual defense policy. Um.
Speaker 1: But this was one of those measures where the House
Speaker 1: did its thing, the Senate did its thing. Now they've
Speaker 1: got to meld them together. And like I mentioned before,
Speaker 1: if you're still having the conversation about well do we
Speaker 1: want to get into tax policy, if the answer to
Speaker 1: that is yes, there's a lot of work left to do.
Speaker 1: It's a very wide ranging bill, and they want to
Speaker 1: give everybody the chance to sort of do their legislating
Speaker 1: on it. But I mean, nobody's talking about that bill
Speaker 1: falling apart. At least, it's just moving quite slow. But
Speaker 1: it was something that we needed a year ago, or
Speaker 1: at least we were told, Emma, is this Does this
Speaker 1: resonate nationally? Two people vote? I mean, my goodness, they
Speaker 1: can't even name the bill, for crying out loud, How
Speaker 1: do how do lawmakers get that support from constant at
Speaker 1: you in on something so esoteric? Yeah, I think that
Speaker 1: that's that's a big that's a big question here and
Speaker 1: especially the answer. Yeah, And I think you know, if
Speaker 1: you look at um, people can't even name. If you
Speaker 1: look at polls, people can't name what's in the infrastructure bill.
Speaker 1: Are what you know, the Biden administration has already passed,
Speaker 1: whereas Congress that's gotten through, so especially stuff like this
Speaker 1: that has to do with China and trade, it won't
Speaker 1: move the Mark and Jack will stay with us. As
Speaker 1: we turn to the campaign trail coming up ahead of
Speaker 1: next Tuesday's primaries, voting in three states, including Georgia big
Speaker 1: one for Donald Trump and by the way, they still
Speaker 1: haven't called the race in Pennsylvania. Write the Republican primary
Speaker 1: for Senate Dr Roz David McCormick still within a thousand
Speaker 1: points or something days later. I wonder if that's done
Speaker 1: by the next set of primaries. We'll have more with
Speaker 1: Jack and Emma straight ahead on the fastest hour in politics.
Speaker 1: I'm Joe Matthew in Washington, Happy Friday. This is Bloomberg
Speaker 1: broadcasting live from our nation's capital, Bloomberg nine one to
Speaker 1: New York, Bloomberg eleven Frio to Boston, Bloomberg one oh
Speaker 1: six one to San Francisco, Bloomberg nine sixty to the country,
Speaker 1: Serious x M General one nine and around the globe
Speaker 1: of Bloomberg Business app and Bloomberg Radio dot Com. This
Speaker 1: is Bloomberg Sound On with Joe Matthew and the primaries
Speaker 1: keep coming. Busy month. Voting next Tuesday in Alabama, Arkansas
Speaker 1: and Georgia will get you ready next with Bloomberg's and
Speaker 1: mckinnery and Jack Fitzpatrick. They've still not decided the big
Speaker 1: primary from this week, the Republican Senate primary in Pennsylvania,
Speaker 1: but we're already gearing up for another important Tuesday. Here
Speaker 1: is the focus shift to Georgia. We want to dig
Speaker 1: into some of these races with our panel, Bloomberg National
Speaker 1: politics reporter and mckinnery and Bloomberg Government's Jack Fitzpatrick spending
Speaker 1: time with us today the Friday edition of Sound On.
Speaker 1: It's great to have both of you here, and a
Speaker 1: lot of us have been watching the Trump effect on
Speaker 1: the primaries, and I think we can agree the big
Speaker 1: his test of Trump's influence would be in Georgia simply
Speaker 1: because of the history there election. Uh, it's not looking
Speaker 1: good for Trump in the gubernatorial primary. Is there any chance,
Speaker 1: based on your reporting, that David Purdue beats incumbent Governor
Speaker 1: Brian Camp. Something would really have to happen, Like if
Speaker 1: you're looking at the polls of the Fox News just
Speaker 1: had a pull out yesterday that showed Brian Camp, incumbent,
Speaker 1: up thirty two points over Perdue. So produced doing pretty
Speaker 1: poorly in this election. And like you had said, Trump
Speaker 1: has done decently well so far off his endorsements. Um,
Speaker 1: but until this Georgia race, a lot of the people
Speaker 1: he has endorsed e there have you know, not have
Speaker 1: a strong candidate against them, you know, or really haven't
Speaker 1: had that competitive of a race. But now you're looking
Speaker 1: at Georgia governor where David Perdue versus Brian Camp. Perdue
Speaker 1: is in this race, you know, because of Trump support.
Speaker 1: And then you're looking at secretary state where you have
Speaker 1: Rafflisberger and Jouggy Hi. Yeah, I'm gonna ask you about
Speaker 1: that when in terms of the governor's race, though, to
Speaker 1: see a spread like that is it's pretty unusual considering
Speaker 1: the name recognition that they both enjoy. Does that say
Speaker 1: more about Brian Camp's job as governor or more about
Speaker 1: Donald Trump's lack of influence in Georgia? I think it's
Speaker 1: you could argue about um. I think that clearly the voters,
Speaker 1: Republican voters have liked what Kemp has done and his
Speaker 1: job record supersedes Trump's opinion. I guess Jack, when it
Speaker 1: comes down to it is Trump winning no matter who wins,
Speaker 1: because we're all talking about him anyway. We are talking
Speaker 1: about him. But you know, when you look at him
Speaker 1: getting involved in a secretary of state's race, when you
Speaker 1: hear what he had to say about the Pennsylvania race
Speaker 1: where he, you know, moment oz had a point one
Speaker 1: percent declare victory, Now that that's a concern for him
Speaker 1: if he were to run for president again. Clearly, by
Speaker 1: getting involved in the Secretary of States race and trying
Speaker 1: to go after Brad Ravensburger. Uh, it's a priority for
Speaker 1: Trump to have some level of loyalty in the electoral process.
Speaker 1: So there are concerned besides publicity. I would add, by
Speaker 1: the way, with David Perdue, if you're going to kind
Speaker 1: of delegate, your my, your your Trump's guy in this race,
Speaker 1: Perdue had a bit of a scandal. He kind of
Speaker 1: got up with the the Stock Act trading trading issues
Speaker 1: in which led to him helped lead to him leaving
Speaker 1: the Senate. So, I mean, this may be a case
Speaker 1: in which Trump just didn't really pick the right horse
Speaker 1: to sort of be his proxy in Georgia. Emma, I
Speaker 1: learned from you that Mike Pence gonna be campaigning for
Speaker 1: Brian Kemp. Is this now a proxy of Trump versus Pence?
Speaker 1: I mean definitely. Um, you look at it and you
Speaker 1: think about and Pence's ambitions, and you know, Pence until
Speaker 1: this race really hasn't been that vocally against Trump or
Speaker 1: gone out you know, against some of this is a
Speaker 1: pretty significance. Yeah, talk to me about the Secretary of
Speaker 1: State race here, Emma, because this was Jack brought it up.
Speaker 1: This is maybe the most closely watched, maybe the most
Speaker 1: important contest to sort of play out the impact that
Speaker 1: we're talking about here, and to see a congressman Jody
Speaker 1: Heist kind of stepped down to run for this seat.
Speaker 1: But is that unprecedented? Well, you know, it's the big question.
Speaker 1: It'll be a test of kind of candidate who is
Speaker 1: a traditional Republican hits all the boxes. You know, Brad
Speaker 1: Raefinsberger be slammed and lose his seat based off of
Speaker 1: you know, Donald Trump's opinion of him and you know,
Speaker 1: him not doing enough for the election. Um. But it
Speaker 1: is it's very interesting to see again Raefinsburger, who aside
Speaker 1: from this has been well liked in Georgia, be facing
Speaker 1: this from Joddy Heiss a u s represent that you
Speaker 1: ever heard of a congressman. It's not typically a step
Speaker 1: up to is this just creavor Trump Nation that would
Speaker 1: seem to be part of it. It is a statewide office.
Speaker 1: If you have ambitions in the future, you know, going
Speaker 1: from the House to a statewide office, who knows, but
Speaker 1: you know, it's it's definitely unusual to see somebody go
Speaker 1: from the House to something like Secretary of c he's
Speaker 1: not running for governor or even you know, the second
Speaker 1: in charge lieutenant governor position. It's it's much more low
Speaker 1: profile than your usual statewide camp. But I'll also add
Speaker 1: just after and all of the you know, all of
Speaker 1: the attention that was paid to the Secretary of State race,
Speaker 1: it's you know, people are paying more attention and get
Speaker 1: more ink than if they ran for re election. Is
Speaker 1: that your point? That's kind of incredible to think about
Speaker 1: before we wrap this conversation, and just looking backward for
Speaker 1: a second in Pennsylvania, Emma, do you have a sense
Speaker 1: of how long this is going to take? Um I
Speaker 1: just checked right before I got on here, and they're
Speaker 1: about a thousand votes between them and they're still counting.
Speaker 1: UMZ is that thirty one percent McCormick one or thirty
Speaker 1: one point one percent? So oz is up point one percent.
Speaker 1: And then after that, once they do finally finish counting
Speaker 1: the votes, it'll go into an automatic recount. So then
Speaker 1: we're going to have to do this all unless it's
Speaker 1: a miracle. Right That's that's within half a percent, is
Speaker 1: that right? Half of triggers the recount. So we're gonna
Speaker 1: recount Jack, and you're gonna be talking about this weeks
Speaker 1: from now. It can take a while, as as Emma
Speaker 1: was saying, they have to finish the vote count and
Speaker 1: then they recount. It would take a really significant surge
Speaker 1: to go from a point one percent lead to a
Speaker 1: point five percent lead. So that's it seems to be
Speaker 1: where they're going. You know, when you see a roughly
Speaker 1: thousand vote difference between two candidates, it would also have
Speaker 1: to be fairly significant to reverse that. It's not you know,
Speaker 1: point one percent in a little tiny race where there's
Speaker 1: a matter of a few dozen votes. But it can
Speaker 1: definitely take time, and it maybe prove a little frustrating
Speaker 1: to Trump, who you know, we kind of jumped the
Speaker 1: gun and saying let's let's call it early. Yeah, And well,
Speaker 1: Trump has said that he is has expressed frustration um
Speaker 1: with os not just blowing out the race, and which
Speaker 1: again goes back to his endorsements. And you know, going
Speaker 1: into the Georgia primaries, what will that look like. I've
Speaker 1: got a lot to learn. This is going to be
Speaker 1: interesting next week. And mckennry, Jack Fitzpatrick, many thanks for
Speaker 1: the insights. You guys, have a great weekend. You to
Speaker 1: thank you and there's one all find you about in
Speaker 1: Arkansas that should get a lot of attention next week.
Speaker 1: The Republican gubernatorial to replace Asa Hutchinson, who might run
Speaker 1: for president. Sarah Huckabee Sanders, remember President Trump's Press secretary,
Speaker 1: Mike Huckabee's daughter in the primary running against Francis Doc.
Speaker 1: They call him Doc Washburn, a former radio talk show host.
Speaker 1: Does that mean I could run for governor? There's a
Speaker 1: more crowded field on the Democratic side. It's a five
Speaker 1: way race. We'll let you know what happens. But Georgia,
Speaker 1: as we just discussed with Emma and Jack, will be
Speaker 1: the one that drives the headlines. Will see if we
Speaker 1: have any late calls. Of course, you can count on
Speaker 1: Bloomberg News right here on the radio or on your
Speaker 1: terminal for a full readout on what happens. So it's
Speaker 1: onto Davos next. They're fueling up the Gulf streams all
Speaker 1: around the world. I know it's sunny and here in
Speaker 1: Washington at least in the nineties today, but yeah, we're
Speaker 1: doing the World Economic Forum. Leave the skis at home
Speaker 1: and we're joined next by a special guest on his
Speaker 1: way after this to Davos. Bloomberg's own Tom Keene makes
Speaker 1: his debut on sound On. Stay here, this is Bloomberg.
Speaker 1: You're listening to Bloomberg. You Sound On with Joe Matthew
Speaker 1: on Bloomberg Radio. Now we round the band on the
Speaker 1: fastest hour in politics. Thank you for joining us Sun
Speaker 1: Joe Matthew in Washington with something special now on the
Speaker 1: Friday edition of Sound On. If you haven't heard this
Speaker 1: big weekend for finance and politics. Yes, it's time to
Speaker 1: go back to Davos. There's only one man who can
Speaker 1: bring this home for us, the Dean of Davos himself,
Speaker 1: Bloomberg's own Tom Keene, of course, the co host of
Speaker 1: bloom Burke Surveillance up very early in the morning and
Speaker 1: he's with us now and his debut appearance on sound On. Tom,
Speaker 1: Thanks for staying up with us, Joe, wonderful to be
Speaker 1: with you. It's uh that time of year, except it's
Speaker 1: not January. Well yeah, so it's time to gas up
Speaker 1: the surveillance Gulf Stream, as you say, which may actually
Speaker 1: cost less than flying coach this year. But this is
Speaker 1: gonna be a Davos unlike any we've seen. Tom for starters,
Speaker 1: no snow strangely, no skiing, no Russian oligarchs, and a
Speaker 1: backdrop this year that is bleak economically and politically, Tom,
Speaker 1: why is this even happening? A couple of ideas. I
Speaker 1: actually looked up with the Gulf stream costs here jet
Speaker 1: fuel through the roof, and it's just to get it up.
Speaker 1: I'm not taking the golf stream folks. We say good
Speaker 1: morning to Swiss Air to get me over to a
Speaker 1: Switzerland that will be shell shock. This is, of course
Speaker 1: the great independent state, the warriors front and center. Joe
Speaker 1: and what I would say is so so important is
Speaker 1: the world economic for him this time or round is
Speaker 1: more on the page with the zeitgeist than I've seen
Speaker 1: them in twenty years. How they understand the war. The
Speaker 1: war is front center. They're doing all the other themes,
Speaker 1: the risks, global warming, all the rest of it. But
Speaker 1: Klaus Schwab. Dr. Schwab has said, the war matters. You know,
Speaker 1: I want to get to the real stuff with you.
Speaker 1: I cover politics. We have you say a G seven right,
Speaker 1: and you've got the big family photo. You've got a
Speaker 1: lot of posturing, a lot of mission statements. But it's
Speaker 1: the bi lats, it's the bilateral conversations that you don't
Speaker 1: get to be in the room for this. The the
Speaker 1: actual in your case, the deal making is that part
Speaker 1: still intact. There's two parts to the deal making of
Speaker 1: the elite and Dabos. One of them, which I think
Speaker 1: has been way under reported, is it's no different, Joe
Speaker 1: than the Plumber's Convention in Las Vegas, where yeah, there's
Speaker 1: a lot of partying, but people are there to do
Speaker 1: a lot a lot of business. The corporate officers that go,
Speaker 1: including our our leadership at Bloomberg, work NonStop seeing people
Speaker 1: that they see once a year. It is exactly like
Speaker 1: the plumbers convention in Las Vegas. How much of it
Speaker 1: is spontaneous, it's very planned because people are on very
Speaker 1: short schedules. One of the great things about Davos in
Speaker 1: the modern calendar is the casual European four day five
Speaker 1: day conference. For many people have squeezed into a forty
Speaker 1: eight hours in and out. That's sort of the back story.
Speaker 1: The front story to your point is there is a zeitgeist.
Speaker 1: Not traditionally on a Monday start, I would say by
Speaker 1: Wednesday morning, it's completely changed into what really matters to people,
Speaker 1: and that happens year after year after year. But this
Speaker 1: May meeting is so different and so trun created that
Speaker 1: I'm not really sure how that's going to play out.
Speaker 1: Secretary Gina Romando or Commerce Secretary will be representing the administration.
Speaker 1: I know you're gonna be talking with her next week. Tom.
Speaker 1: What what kind of an aura does the United States have,
Speaker 1: particularly the administration walking into this meeting loaded question It's
Speaker 1: like the Boston Red Sox and the year where they're
Speaker 1: actually competent versus what's going on? We don't have to
Speaker 1: worry about that. It is so so changed and changeable
Speaker 1: over the years. Of course, everyone remembers the excitement of
Speaker 1: Donald Trump coming and what was he going to say?
Speaker 1: And all that, and and without being political, it was
Speaker 1: a clumsy moment. When President she spoke in Davos in
Speaker 1: two thousand seventeen, it was shocking. The quiet that descended
Speaker 1: on the valley, like a four or five mile valley.
Speaker 1: You could feel the silence. Is he spoke in the
Speaker 1: elites hope that things would work out. Take a memo, Joe,
Speaker 1: it didn't work out for the US. It's so ever changing.
Speaker 1: I will never forget years ago with the Bush administration,
Speaker 1: everyone was there, but Laura and George and I'm there
Speaker 1: with Rob Portman retiring now as a Senator from Ohio,
Speaker 1: and I don't know what under Secretary was or whatever,
Speaker 1: but I'm literally sitting at the counter with Rob Portman
Speaker 1: over eggs and potatoes, trying to stuff in some food
Speaker 1: late at night. I mean, you know, it's those kind
Speaker 1: of moments. And then that changes to now where the
Speaker 1: US doesn't really want to project here, so they send
Speaker 1: along uh Mr Romando of Rhode Island to be the
Speaker 1: face of the administration. This, of course, as the administration
Speaker 1: carries out an important trip to Asia, and the connection
Speaker 1: is China. It's always about the elephant in the room.
Speaker 1: And the elephant in the room is China, their growth,
Speaker 1: their percentage of global growth. Joe, I would suggest a
Speaker 1: great theme there will be what is China like after lockdown?
Speaker 1: And we could you know, we do that every day
Speaker 1: in surveillance. We debate with people about when will the
Speaker 1: lockdown and etcetera, etcetera. But I think a great theme
Speaker 1: will be what will China be like and the Pacific
Speaker 1: Rim and Asia be like after lockdown. All this said,
Speaker 1: we're talking a lot about the political undercurrents here, Tom,
Speaker 1: how about the economic undercurrents and the markets themselves? The
Speaker 1: last time we saw everything go down, You're showing up
Speaker 1: in Davos with people licking their wounds. Tom, that's happened
Speaker 1: before in any of flavors and tampas at Jack's Hole.
Speaker 1: Are we there? Yeah, I guess we're there this time.
Speaker 1: But Joe, I've been talking about this this week across
Speaker 1: Bloomberg surveillance. Joe, you can hear it and see it's uh,
Speaker 1: five days a week. I'm yeah, I'm a fan. Well,
Speaker 1: I didn't know if you're where we were run that early.
Speaker 1: You're only sliding in at ten a yet there a
Speaker 1: couple of couple of mornings. I've been there for that yet.
Speaker 1: Oh that's good. But but Joe, the big thing here
Speaker 1: not spoken is the decline in the bond market the
Speaker 1: financial media. And I'm as guilty of this as anyone is.
Speaker 1: Equity driven. There's all sorts of reasons for that. We
Speaker 1: don't need to go We're trying. That was that was
Speaker 1: the invention. But it's stock market, stock market, stock market,
Speaker 1: stock market. And the unspoken are the losses taken in
Speaker 1: the fixed income market worldwide, certainly within the United States
Speaker 1: is measured by the Bloomberg set of Bloomberg Total return indices.
Speaker 1: And I'm sorry. The bond market, tobaccle is the great
Speaker 1: unspoken in DeVos. You have a gut checker. You allowed
Speaker 1: to tell me that on where the heck this market is.
Speaker 1: You talk to the smartest people in the business every day.
Speaker 1: They sat me down. It was like it was like
Speaker 1: it wasn't the First Born identity movie. It was sort
Speaker 1: of like Number three movie where they took the chip
Speaker 1: out of my hip and they said, they said, listen,
Speaker 1: you can't give an opinion. And as John Farrell will
Speaker 1: tell you, I give my opinion like five times an hour.
Speaker 1: Well that's why we love you though. And I just
Speaker 1: you know, my god, somebody's gonna start calling the bottom here.
Speaker 1: I've Mr Gollen this morning on your program. It's not
Speaker 1: a pretty bullish to me. At some point this is
Speaker 1: gonna end and it's gonna feel right, maybe a little better.
Speaker 1: John Gobb who's been a bullock credit Suite and reaffirmed
Speaker 1: that this morning, made very clear there are ways to
Speaker 1: work out of this. Where the Fed blinks to fed adjust,
Speaker 1: let me go to the bond space. Michael Collins at
Speaker 1: p JIM and then over to the wonderful Tony Roth
Speaker 1: at Wilmington's Trust, both talking about the asymmetries of the
Speaker 1: price decline in bonds. They could get worse, bonds could
Speaker 1: go down in price, higher in yield. But both of them,
Speaker 1: in their own way, we're saying the potential payoff from
Speaker 1: being optimistic here is far greater than the potential losses.
Speaker 1: Tony Roth suggesting growth, big tech, microsoftie like and Mr
Speaker 1: Collins at p JIM suggesting they're really studying grabbed the
Speaker 1: coupon at whatever credit in bonds. It may go down,
Speaker 1: you may lose money, but the upside, to use his language,
Speaker 1: is double digit bond potential. Now that's not me talking,
Speaker 1: them talking, But Joe, you will twist us around. I'll
Speaker 1: do my best. Actually, Tom Keane, you're walking us into
Speaker 1: the weekend here on Bloomberg sound On. Just have to
Speaker 1: know is there an official adult beverage for Davos. That's
Speaker 1: a loaded question. It's sort of a movable force as
Speaker 1: it's it's basically I go, well, what what are you pouring?
Speaker 1: Or you know, I'll have what you're having. Fine, that works.
Speaker 1: It will not be a Moscow mule to you this year,
Speaker 1: No Moscow mules. Will you watch the Red Sox from overseas?
Speaker 1: This is a problematic issue. John Farrow has me stealed
Speaker 1: to watch a clan which I wouldn't know if they
Speaker 1: hit me over the head, you'd be stunned. How hard
Speaker 1: it is to watch American sports in Europe. That something
Speaker 1: real chore. Tom Keene, get home safe. Thank you so
Speaker 1: much for your debut appearance on Bloomberg Sound On. Would
Speaker 1: you do this again? I'll talk to my people, they'll
Speaker 1: talk to your people. We figured out the great Tom Keane.
Speaker 1: Everybody finally on the big broad cast. Almost a year
Speaker 1: it took to get Tom Keene, of course, the co
Speaker 1: host of Bloomberg Surveillance. As you heard Tom mentioned, it's
Speaker 1: weekday mornings. God, they do start early six a m.
Speaker 1: Wall Street time. If you get up on a Tuesday,
Speaker 1: you might even see me talking to Tom. He's a kidder.
Speaker 1: Travel safe, sir. We're actually we've got a massive contingency
Speaker 1: going to Davos, and you can expect special coverage on
Speaker 1: surveillance right here on Bloomberg Radio. As we move into
Speaker 1: next week, We're gonna have special coverage as well. It's
Speaker 1: gonna be a really important week next week President Biden's
Speaker 1: trip of course to Asia. Will be following the President
Speaker 1: as he makes his way from South Korea to Japan.
Speaker 1: And we've got this massive primary day. Well I shouldn't
Speaker 1: say massive compared to last week. There were five states,
Speaker 1: of course, but massive and significance because of one state.
Speaker 1: If you heard our conversation with Emma and Jack, Georgia
Speaker 1: votes the Trump brand on the line, and we'll have
Speaker 1: a lot of stuff to talk about coming into going
Speaker 1: out of that. I'm Mary the a P by the way,
Speaker 1: Associated Press calling during this broadcast while I was just
Speaker 1: talking to Tom that the Os McCormick race the Pennsylvania
Speaker 1: Republican primary likely go into a recount. But of course
Speaker 1: if you listen to this broadcast you knew that already.
Speaker 1: Have a great weekend, and thanks to everybody for jumping in.
Speaker 1: Tom Keen, em mckinry, Jack Fitzpatrick and Anna Ashton on
Speaker 1: the Fastest Hour in Politics. Will update the markets next
Speaker 1: after another roller coaster, and I'll meet you back here
Speaker 1: on Monday on sound On. I'm Joe Matthew and Washington.
Speaker 1: This is Bloomberg