1 00:00:00,080 --> 00:00:10,080 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,119 --> 00:00:13,880 Speaker 1: Bloomberg Balance of Power podcast. Catch us live weekdays at 3 00:00:13,920 --> 00:00:17,119 Speaker 1: noon and five pm Eastern on Apple Coarckley and Android 4 00:00:17,160 --> 00:00:20,560 Speaker 1: Auto with the Bloomberg Business App. Listen on demand wherever 5 00:00:20,600 --> 00:00:24,640 Speaker 1: you get your podcasts, or watch us live on YouTube. 6 00:00:25,400 --> 00:00:28,200 Speaker 2: We're standing by to hear from President Trump. He's set 7 00:00:28,240 --> 00:00:31,240 Speaker 2: to speak any moment now from the Oval Office. Delivering 8 00:00:31,280 --> 00:00:33,680 Speaker 2: remarks is all we've been told from the administration. We're 9 00:00:33,720 --> 00:00:35,280 Speaker 2: not sure what the topic will be, and it could 10 00:00:35,280 --> 00:00:38,720 Speaker 2: include many As the press pool gathers in the briefing room, 11 00:00:38,880 --> 00:00:41,440 Speaker 2: they'll be called upstairs to the Oval at some point soon, 12 00:00:41,440 --> 00:00:43,680 Speaker 2: and we'll bring you in the room with them for 13 00:00:43,760 --> 00:00:47,000 Speaker 2: this conversation with the media. This, of course, all coming 14 00:00:47,040 --> 00:00:49,519 Speaker 2: just a day before President Trump meets with Vladimir Putin, 15 00:00:50,040 --> 00:00:55,240 Speaker 2: as the world's attention shifts to Anchorage, Alaska, where it's 16 00:00:55,280 --> 00:01:00,520 Speaker 2: not only political drama but logistical drama ahead of this meeting. 17 00:01:00,520 --> 00:01:04,280 Speaker 2: A remarkable story here on the Terminal from Miles Miller 18 00:01:04,440 --> 00:01:08,240 Speaker 2: when the Trump administration announced this meeting only a week ago. 19 00:01:08,319 --> 00:01:12,840 Speaker 2: The lone agent assigned to the Secret Service post in 20 00:01:12,880 --> 00:01:16,800 Speaker 2: the last Frontier began preparing to host hundreds of reinforcements 21 00:01:17,160 --> 00:01:20,280 Speaker 2: in the days ahead. The agency's mission was unusually complex, 22 00:01:20,360 --> 00:01:24,080 Speaker 2: consider this as the host nation here, the Secret Service 23 00:01:24,120 --> 00:01:27,320 Speaker 2: tasked with protecting both the American and Russian presidents at 24 00:01:27,360 --> 00:01:30,000 Speaker 2: the same time. We're going to talk in a moment 25 00:01:30,000 --> 00:01:32,360 Speaker 2: with the governor of Alaska. After Donald Trump was asked 26 00:01:32,360 --> 00:01:34,840 Speaker 2: about this meeting yesterday in his news conference at the 27 00:01:34,880 --> 00:01:36,080 Speaker 2: Kennedy Center, here's what he said. 28 00:01:37,000 --> 00:01:40,240 Speaker 3: If the first one goes okay, we'll have a quick 29 00:01:40,280 --> 00:01:42,800 Speaker 3: second one. I would like to do it almost immediately, 30 00:01:43,560 --> 00:01:47,520 Speaker 3: and we'll have a quick second meeting between President Putin 31 00:01:47,560 --> 00:01:50,640 Speaker 3: and President Zalinski and myself if they'd like to have 32 00:01:50,760 --> 00:01:54,000 Speaker 3: me there, and that would be a meeting where maybe 33 00:01:54,040 --> 00:01:55,280 Speaker 3: it could be absolutely work. 34 00:01:55,560 --> 00:02:00,160 Speaker 4: Russia faced any consequences if Vladimir pun does not Are 35 00:02:00,200 --> 00:02:00,440 Speaker 4: you to. 36 00:02:00,400 --> 00:02:04,160 Speaker 2: Stop the war after your meeting on Friday, Yes, stay will? 37 00:02:04,640 --> 00:02:07,720 Speaker 5: What will? The thoughts day will be conducations, tariffs today 38 00:02:07,840 --> 00:02:08,200 Speaker 5: will be. 39 00:02:08,160 --> 00:02:10,959 Speaker 3: I don't have to say they will be very severe consequences. 40 00:02:11,800 --> 00:02:14,520 Speaker 2: Some pretty tough talk from the President, even as we've 41 00:02:14,520 --> 00:02:17,040 Speaker 2: also heard him lower the bar ahead of this meeting, 42 00:02:17,040 --> 00:02:19,040 Speaker 2: suggesting that it might be a feel out session. We're 43 00:02:19,040 --> 00:02:20,360 Speaker 2: not going to know until they get in there, and 44 00:02:20,360 --> 00:02:22,600 Speaker 2: there will be a bilateral news conference afterward. We'll bring 45 00:02:22,680 --> 00:02:26,079 Speaker 2: it to you here tomorrow night on Bloomberg TV and radio. 46 00:02:27,000 --> 00:02:30,240 Speaker 2: But when we consider Alaska, as I mentioned the Last 47 00:02:30,240 --> 00:02:33,359 Speaker 2: Frontier as the staging ground for peace talks, we have 48 00:02:33,400 --> 00:02:35,840 Speaker 2: a great opportunity to bring back the Governor of Alaska, 49 00:02:35,880 --> 00:02:38,760 Speaker 2: Mike Dunlevy with us on Bloomberg TV and radio. Governor, 50 00:02:38,800 --> 00:02:41,360 Speaker 2: welcome back to Balance of Power. It's great to see you. 51 00:02:41,400 --> 00:02:43,400 Speaker 2: And as I think I've made clear here, you had 52 00:02:43,520 --> 00:02:45,600 Speaker 2: very little notice to put all of this together, so 53 00:02:45,680 --> 00:02:47,440 Speaker 2: I understand it's been a busy couple of days. 54 00:02:47,520 --> 00:02:48,320 Speaker 5: Is Alaska ready? 55 00:02:49,720 --> 00:02:54,240 Speaker 4: Oh yeah, Alaska's ready. We have the venue already selected. 56 00:02:54,320 --> 00:02:57,360 Speaker 4: The White House has already done that at our joint 57 00:02:57,720 --> 00:02:59,920 Speaker 4: Base Elmendorf Richardson here in Anger. 58 00:03:00,040 --> 00:03:01,200 Speaker 5: So it's going to be pretty secure. 59 00:03:01,919 --> 00:03:04,760 Speaker 4: The President's going to land there and they've got a 60 00:03:04,800 --> 00:03:06,679 Speaker 4: lot of space for meetings, and so I think it's 61 00:03:07,000 --> 00:03:09,119 Speaker 4: a location that works well. 62 00:03:09,440 --> 00:03:11,480 Speaker 5: Will you'll be greeting the President on the tarmac. 63 00:03:13,040 --> 00:03:15,880 Speaker 4: I'll be meeting with the President Friday morning briefly, and 64 00:03:16,200 --> 00:03:20,520 Speaker 4: so yes, and we'll have probably a very brief conversation 65 00:03:20,520 --> 00:03:22,720 Speaker 4: about things such as our Alaska Natural Gas line and 66 00:03:22,760 --> 00:03:24,000 Speaker 4: other things happening here in Alaska. 67 00:03:25,280 --> 00:03:30,360 Speaker 2: Understood, really incredible reporting here about the logistics going into 68 00:03:30,400 --> 00:03:33,680 Speaker 2: all of this. Anchorage has a limited number of hotel 69 00:03:33,760 --> 00:03:35,960 Speaker 2: rooms to work with here, a small rental car market, 70 00:03:36,280 --> 00:03:39,800 Speaker 2: so we're trucking in all kinds of resources here, whether 71 00:03:39,840 --> 00:03:42,360 Speaker 2: it's vehicles being flown in from the Lower forty eight 72 00:03:42,440 --> 00:03:45,000 Speaker 2: or from other parts of your state. How much of 73 00:03:45,040 --> 00:03:50,480 Speaker 2: this has been a logistical experiment for your office, Well. 74 00:03:50,360 --> 00:03:52,600 Speaker 4: Again, most of this is being handled by the White 75 00:03:52,640 --> 00:03:55,240 Speaker 4: House itself, and they're doing a great job. They've interfaced 76 00:03:55,240 --> 00:03:59,440 Speaker 4: with us, They've interfaced with our troopers and city police 77 00:03:59,440 --> 00:04:02,240 Speaker 4: here in Anchorage, and so the vast majority of this 78 00:04:02,280 --> 00:04:04,240 Speaker 4: is being handled by the White House. It is tourist 79 00:04:04,280 --> 00:04:06,640 Speaker 4: season is we're in the height of tourist season, so 80 00:04:06,680 --> 00:04:09,400 Speaker 4: hotels are tight, cars are tight, as you mentioned. But again, 81 00:04:09,520 --> 00:04:13,240 Speaker 4: having this on the base alleviates a lot of issues, 82 00:04:13,240 --> 00:04:16,160 Speaker 4: and so it's going to be on the base. Tourism 83 00:04:16,160 --> 00:04:17,960 Speaker 4: will continue here. There's going to be a lot of 84 00:04:17,960 --> 00:04:19,960 Speaker 4: reporters here, a lot of others with their eyes on 85 00:04:20,000 --> 00:04:21,719 Speaker 4: this great state, so we're prepared. 86 00:04:22,839 --> 00:04:24,640 Speaker 2: Well, I should think that that's a pretty good thing 87 00:04:24,680 --> 00:04:27,200 Speaker 2: for Alaska. You're going to be seeing all weekend lots 88 00:04:27,200 --> 00:04:29,520 Speaker 2: of beauty shots of your state, I'm sure, and a 89 00:04:29,520 --> 00:04:31,520 Speaker 2: lot of tourists will have stories to tell when they 90 00:04:31,520 --> 00:04:34,640 Speaker 2: come home. We know the secret services on the ground there, Governor, 91 00:04:34,680 --> 00:04:36,680 Speaker 2: and I don't know to what extent you can answer 92 00:04:36,720 --> 00:04:37,320 Speaker 2: these questions. 93 00:04:37,360 --> 00:04:39,479 Speaker 5: Are there Russian agents in Alaska right now? 94 00:04:41,560 --> 00:04:41,960 Speaker 6: I don't know. 95 00:04:42,160 --> 00:04:44,000 Speaker 4: I don't have the answer to that. That again would 96 00:04:44,000 --> 00:04:46,600 Speaker 4: be something the White House we know, but if there are, 97 00:04:46,680 --> 00:04:49,599 Speaker 4: it hasn't been made known to us. 98 00:04:49,600 --> 00:04:53,000 Speaker 2: Interesting, as you mentioned, this is taking place here at 99 00:04:53,080 --> 00:04:57,800 Speaker 2: the Joint Base, which gives you, you know, the logistical 100 00:04:57,839 --> 00:05:01,479 Speaker 2: cover here to keep that sort of self contained. But 101 00:05:01,560 --> 00:05:03,960 Speaker 2: when you consider the number of folks coming into the state, 102 00:05:05,240 --> 00:05:07,839 Speaker 2: it's pretty interesting to imagine what it's going to look 103 00:05:07,880 --> 00:05:11,000 Speaker 2: like in Anchorage. Is this the biggest thing to happen 104 00:05:11,480 --> 00:05:12,200 Speaker 2: to Anchorage? 105 00:05:12,560 --> 00:05:12,760 Speaker 5: Ever? 106 00:05:12,880 --> 00:05:14,480 Speaker 4: This is one of the Yeah, sure, this is one 107 00:05:14,480 --> 00:05:16,280 Speaker 4: of the biggest things to happen. And we've we've had 108 00:05:16,960 --> 00:05:20,120 Speaker 4: we've had the Pope and you know, President Reagan here 109 00:05:20,320 --> 00:05:24,600 Speaker 4: at one time years ago, obviously, but this is this 110 00:05:24,640 --> 00:05:27,600 Speaker 4: is a huge a huge issue, a huge deal for Alaska. 111 00:05:27,920 --> 00:05:30,560 Speaker 4: It makes sense when you look at the globe. We're 112 00:05:30,600 --> 00:05:33,719 Speaker 4: only two and a half miles from Russia. The President 113 00:05:33,800 --> 00:05:36,359 Speaker 4: of Russia just has to fly a few miles across 114 00:05:36,400 --> 00:05:38,760 Speaker 4: the Barring Sea to get here. President Trump, as they 115 00:05:38,760 --> 00:05:40,520 Speaker 4: come up from the Lower forty eight, go through Canada, 116 00:05:40,560 --> 00:05:44,160 Speaker 4: and so we're closer. We're I think we're closer to 117 00:05:44,240 --> 00:05:46,640 Speaker 4: Moscow by about two and a half hours than watching 118 00:05:46,680 --> 00:05:49,200 Speaker 4: the DC is going the other way, and so makes 119 00:05:49,200 --> 00:05:50,000 Speaker 4: sense to be here. 120 00:05:50,480 --> 00:05:51,560 Speaker 5: We're glad to host it. 121 00:05:51,600 --> 00:05:54,159 Speaker 4: Whatever we can do to help, especially with this issue 122 00:05:54,160 --> 00:05:58,760 Speaker 4: of peace, hopefully in Ukraine sooner than later. Alaska's standing back. 123 00:06:00,080 --> 00:06:02,479 Speaker 2: Well, that's great, and it's a pleasure to spend some 124 00:06:02,560 --> 00:06:04,080 Speaker 2: time with you here. As we wait to hear from 125 00:06:04,080 --> 00:06:06,800 Speaker 2: President Trump, I will let you know that they're mobilizing reporters. 126 00:06:06,839 --> 00:06:09,600 Speaker 2: So at some point here this hour will end up 127 00:06:09,600 --> 00:06:11,440 Speaker 2: in the Oval Office, and I suspect he'll have some 128 00:06:11,480 --> 00:06:14,080 Speaker 2: things to say about this visit Governor. 129 00:06:14,200 --> 00:06:15,480 Speaker 5: He's also likely. 130 00:06:15,279 --> 00:06:17,520 Speaker 2: To talk about his Big Beautiful Bill, which is something 131 00:06:17,520 --> 00:06:19,520 Speaker 2: that he's and other members of the administration are trying 132 00:06:19,520 --> 00:06:22,400 Speaker 2: to remind people of now that it's actually being enacted, 133 00:06:23,080 --> 00:06:25,600 Speaker 2: trying to highlight what they see as the benefits of 134 00:06:25,680 --> 00:06:29,840 Speaker 2: the bill. Alaska played a pretty big role through your 135 00:06:29,880 --> 00:06:33,039 Speaker 2: Senator Lisa Murkowski in the final shaping of that bill. 136 00:06:33,160 --> 00:06:37,240 Speaker 2: She talked about feeling cheated even though she voted to 137 00:06:37,680 --> 00:06:41,200 Speaker 2: pass the legislation and had carved out some pretty interesting 138 00:06:41,279 --> 00:06:44,920 Speaker 2: things for Alaska when it comes to rural hospitals. When 139 00:06:44,960 --> 00:06:48,400 Speaker 2: it comes to even I believe tax credits for whaling captains, 140 00:06:48,720 --> 00:06:51,160 Speaker 2: and I suspect that you would probably tell me about 141 00:06:51,200 --> 00:06:53,440 Speaker 2: the energy enhancements in the Arctic that are going to 142 00:06:53,440 --> 00:06:55,760 Speaker 2: be coming to your state. What's the most important part 143 00:06:55,760 --> 00:06:58,200 Speaker 2: of the big, beautiful bill when it comes to Alaska. 144 00:06:59,080 --> 00:07:02,120 Speaker 4: Well, it's a huge bill. It's got a lot of implications. 145 00:07:02,240 --> 00:07:04,120 Speaker 4: I mean, there's there's some tax relief in there for 146 00:07:04,120 --> 00:07:09,480 Speaker 4: almost everyone. As you mentioned rural hospitals they got they 147 00:07:09,520 --> 00:07:11,240 Speaker 4: got a big win, not just here in Alaska but 148 00:07:11,280 --> 00:07:14,480 Speaker 4: across the country. But really for us, it's the approach 149 00:07:14,520 --> 00:07:17,520 Speaker 4: to energy, it's the approach to critical minerals, our resources. 150 00:07:17,560 --> 00:07:20,640 Speaker 4: We are a resource state under the previous administration, and 151 00:07:20,680 --> 00:07:25,040 Speaker 4: we talked about that in the past on Bloomberg. We 152 00:07:25,040 --> 00:07:26,720 Speaker 4: were not actually well to be perfectly honest with you, 153 00:07:26,760 --> 00:07:28,560 Speaker 4: by the Biden administration. As a matter of fact, we 154 00:07:28,640 --> 00:07:31,560 Speaker 4: had more we called them sanctions, about seventy sanctions by 155 00:07:31,600 --> 00:07:34,440 Speaker 4: the federal government on Alaska during that time. Well, at 156 00:07:34,440 --> 00:07:37,920 Speaker 4: the same time the Biden administration was having conversations with Venezuela, 157 00:07:38,000 --> 00:07:42,160 Speaker 4: I ran on others for resources, oil especially. So President 158 00:07:42,200 --> 00:07:44,680 Speaker 4: Trump has been great for the state of Alaska my opinion, 159 00:07:44,760 --> 00:07:46,920 Speaker 4: the best president ever for the state of Alaska. He's 160 00:07:46,960 --> 00:07:48,680 Speaker 4: allowing us to do what we do best. And so 161 00:07:49,280 --> 00:07:52,560 Speaker 4: that bill is very large, very complex, impacts everyone in 162 00:07:52,600 --> 00:07:55,640 Speaker 4: this country, all the institutions you can think of. But again, 163 00:07:55,680 --> 00:07:59,920 Speaker 4: when it comes to resources and energy, it's not you 164 00:08:00,200 --> 00:08:02,400 Speaker 4: that bill, but the work that the President's done on 165 00:08:02,440 --> 00:08:05,880 Speaker 4: our Alaska natural gas line, the executive order for Alaska. 166 00:08:06,120 --> 00:08:08,120 Speaker 4: I mean his first term, you opened up and war, 167 00:08:08,520 --> 00:08:12,840 Speaker 4: which frankly was very difficult, difficult to get opened in 168 00:08:12,840 --> 00:08:15,640 Speaker 4: the past. But he's done a great job for Alaska. 169 00:08:15,680 --> 00:08:17,480 Speaker 4: And so again I think there's a lot of things 170 00:08:17,520 --> 00:08:18,520 Speaker 4: in that bill for everybody. 171 00:08:19,640 --> 00:08:22,080 Speaker 2: You ever talked to Senator Murkowski about the role that 172 00:08:22,120 --> 00:08:26,320 Speaker 2: she played in framing that legislation in favor of Alaska. 173 00:08:26,920 --> 00:08:27,880 Speaker 5: Well, we were following it. 174 00:08:27,960 --> 00:08:32,320 Speaker 4: I mean Senator Murkowski, Senator Sullivan, Congress from Veggage. They 175 00:08:32,400 --> 00:08:34,280 Speaker 4: all had a hand in it. And of course, as 176 00:08:34,280 --> 00:08:36,920 Speaker 4: you're trying to craft a large bill like that, there's 177 00:08:36,920 --> 00:08:38,480 Speaker 4: going to be some things in there that the people 178 00:08:38,520 --> 00:08:39,880 Speaker 4: aren't going to agree with. But you've got to look 179 00:08:39,920 --> 00:08:42,839 Speaker 4: at overall in the balance. Does it help Alaska? Does 180 00:08:42,840 --> 00:08:45,560 Speaker 4: it help the country? And our three federal officials came 181 00:08:45,600 --> 00:08:47,840 Speaker 4: to the conclusion that does, and so that's why they 182 00:08:47,880 --> 00:08:48,559 Speaker 4: voted yes on it. 183 00:08:49,440 --> 00:08:52,080 Speaker 2: Yeah, Governor, while you're still with us. So I just 184 00:08:52,120 --> 00:08:55,120 Speaker 2: want to ask you if you start seeing secondary sanctions 185 00:08:55,120 --> 00:08:59,760 Speaker 2: against countries that buy oil from Russia, even existing sanctions 186 00:08:59,800 --> 00:09:02,480 Speaker 2: on Russia. Right now, the President has threatened more if 187 00:09:02,480 --> 00:09:05,400 Speaker 2: this meeting does not go well tomorrow or if there 188 00:09:05,440 --> 00:09:09,080 Speaker 2: are no outcomes that benefit Ukraine. What does that mean 189 00:09:09,160 --> 00:09:12,319 Speaker 2: for production for energy output in Alaska. 190 00:09:13,840 --> 00:09:16,800 Speaker 4: Well, obviously if there's sanctions on oil, and personally, I 191 00:09:16,840 --> 00:09:19,320 Speaker 4: think that is a tool that could be applied when 192 00:09:19,360 --> 00:09:21,120 Speaker 4: you look at what's really happening in the world. It's 193 00:09:21,160 --> 00:09:24,960 Speaker 4: interesting because in many European countries are advocating for tough 194 00:09:25,000 --> 00:09:27,960 Speaker 4: stance against Russia, yet at the same time they're buying 195 00:09:28,040 --> 00:09:30,200 Speaker 4: oil and gas fro Russia, which doesn't make any sense 196 00:09:30,240 --> 00:09:30,560 Speaker 4: at all. 197 00:09:31,080 --> 00:09:31,920 Speaker 5: In essence, they're. 198 00:09:31,800 --> 00:09:33,920 Speaker 4: Helping the fuel the war effort on the part of 199 00:09:33,920 --> 00:09:37,520 Speaker 4: the Russians. What it does for Alaska, for any oil 200 00:09:37,559 --> 00:09:41,600 Speaker 4: producing sovereign anywhere in the world, it's going to probably 201 00:09:41,600 --> 00:09:43,760 Speaker 4: help in the short run because if Russian oil is 202 00:09:43,800 --> 00:09:46,199 Speaker 4: taken off the market, if Russian gas is taken off 203 00:09:46,200 --> 00:09:48,280 Speaker 4: the market, it's certainly going to help the United States, 204 00:09:48,280 --> 00:09:51,880 Speaker 4: but it's going to help other producers as well. But again, sanctions, 205 00:09:51,920 --> 00:09:53,960 Speaker 4: i think are a tool that the President is thinking 206 00:09:53,960 --> 00:09:58,040 Speaker 4: about implementing and maybe maybe stronger sanctions, longer lasting sanctions 207 00:09:58,040 --> 00:10:00,480 Speaker 4: to help bring this war to an end. And from 208 00:10:00,520 --> 00:10:04,040 Speaker 4: a security issue, a strategy issue, it's. 209 00:10:03,880 --> 00:10:04,839 Speaker 5: A tool that makes sense. 210 00:10:06,120 --> 00:10:08,000 Speaker 2: Governor, what's the most important thing you're going to tell 211 00:10:08,000 --> 00:10:08,840 Speaker 2: the President tomorrow. 212 00:10:10,559 --> 00:10:11,800 Speaker 4: I'm going to thank him for what he's doing for 213 00:10:11,800 --> 00:10:14,400 Speaker 4: the state of Alaska. I'm to talk to about about 214 00:10:14,440 --> 00:10:17,520 Speaker 4: the progress down our natural gas line, the forty four 215 00:10:17,559 --> 00:10:18,840 Speaker 4: billion dollar project which. 216 00:10:18,720 --> 00:10:22,120 Speaker 5: Is moving ahead. And I'm going to wish him luck. 217 00:10:22,000 --> 00:10:26,079 Speaker 4: In his discussions with the President of Russia. And we're 218 00:10:26,080 --> 00:10:28,439 Speaker 4: all going to hope that there's a piece a just piece. 219 00:10:28,559 --> 00:10:33,200 Speaker 4: The war ends and we can get on with investments, 220 00:10:33,200 --> 00:10:36,360 Speaker 4: we can get on with being being good neighbors to 221 00:10:36,400 --> 00:10:39,200 Speaker 4: each other. And so I think it's I think the 222 00:10:39,200 --> 00:10:41,280 Speaker 4: President is going to there's something going to come out 223 00:10:41,320 --> 00:10:44,000 Speaker 4: of this. Maybe not any final decisions, obviously in the 224 00:10:44,000 --> 00:10:45,440 Speaker 4: four or five hours he's going to be talking with 225 00:10:45,440 --> 00:10:47,480 Speaker 4: the president of Russia, but I think it's going to 226 00:10:47,559 --> 00:10:50,120 Speaker 4: set the stage for I hope, a long lasting piece 227 00:10:50,240 --> 00:10:52,040 Speaker 4: and that benefits everybody. 228 00:10:51,720 --> 00:10:52,200 Speaker 6: In the world. 229 00:10:53,720 --> 00:10:56,040 Speaker 2: We'll be watching for you, assuming we can see his 230 00:10:56,240 --> 00:10:58,760 Speaker 2: arrival at the air base tomorrow. Governor, it's good to 231 00:10:58,800 --> 00:11:01,120 Speaker 2: have you back, and I hope the summer tourist season 232 00:11:01,160 --> 00:11:02,920 Speaker 2: has been treating you well. That's Mike don Levy, the 233 00:11:02,920 --> 00:11:06,280 Speaker 2: Governor of Alaska, bat this year on Bloomberg TV and Radio. 234 00:11:06,280 --> 00:11:06,839 Speaker 5: Thank you, sir. 235 00:11:07,240 --> 00:11:09,640 Speaker 2: It could be right around this time tomorrow that he's 236 00:11:09,720 --> 00:11:13,600 Speaker 2: touching down. We'll bring all the stages of this visit 237 00:11:13,640 --> 00:11:15,679 Speaker 2: to you live here on Bloomberg. It's going to be 238 00:11:15,720 --> 00:11:18,680 Speaker 2: a remarkable day if you're interested in politics, if you're 239 00:11:18,679 --> 00:11:21,440 Speaker 2: interested in history, this will be the case tomorrow as 240 00:11:21,440 --> 00:11:23,480 Speaker 2: the President sits down with Vladimir Putin, and it's going 241 00:11:23,520 --> 00:11:25,640 Speaker 2: to cascade into the evening. We'll be here over time 242 00:11:25,679 --> 00:11:28,320 Speaker 2: for you tomorrow on Bloomberg TV and Radio to not 243 00:11:28,360 --> 00:11:31,760 Speaker 2: only capture what we can around the meeting itself, but 244 00:11:31,840 --> 00:11:35,760 Speaker 2: the bilateral news conference that is now apparently expected with 245 00:11:35,960 --> 00:11:42,200 Speaker 2: both of these leaders facing the press. Stay with us 246 00:11:42,240 --> 00:11:44,480 Speaker 2: on Balance of Power. We'll have much more coming up 247 00:11:44,520 --> 00:11:44,960 Speaker 2: after this. 248 00:11:51,400 --> 00:11:54,880 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 249 00:11:54,960 --> 00:11:57,959 Speaker 1: us live weekdays at noon and five pm Eastern on 250 00:11:58,120 --> 00:12:01,960 Speaker 1: Apple Coarckley, and Android, Otto Bloomberg Business app. Listen on 251 00:12:02,000 --> 00:12:05,280 Speaker 1: demand wherever you get your podcasts, or watch us live 252 00:12:05,360 --> 00:12:06,400 Speaker 1: on YouTube. 253 00:12:07,679 --> 00:12:10,600 Speaker 2: Imagine being the real estate agent who got a phone 254 00:12:10,600 --> 00:12:12,800 Speaker 2: call from the Secret Service. And I'm talking about this 255 00:12:12,840 --> 00:12:16,600 Speaker 2: because Miles Millard has a great story out today on 256 00:12:16,640 --> 00:12:19,679 Speaker 2: the Bloomberg. Secret Service rushes to make Alaska City safe 257 00:12:19,679 --> 00:12:24,440 Speaker 2: for Trump and Putin. Yeah, we're the host nation, which 258 00:12:24,520 --> 00:12:27,280 Speaker 2: is why the Secret Service actually has to protect Vladimir 259 00:12:27,320 --> 00:12:32,400 Speaker 2: Putin as well, along with the whole production which is 260 00:12:32,400 --> 00:12:34,640 Speaker 2: going to take up the better part of the day 261 00:12:34,679 --> 00:12:38,600 Speaker 2: tomorrow in Anchorage. Great story, and we'll talk to Miles 262 00:12:38,600 --> 00:12:41,040 Speaker 2: about this on the late edition. You get a phone 263 00:12:41,040 --> 00:12:44,560 Speaker 2: call from the Secret Service. Most of my short term 264 00:12:44,600 --> 00:12:46,920 Speaker 2: rentals are booked, but I did manage to put some 265 00:12:46,960 --> 00:12:51,480 Speaker 2: of them into one home. Back your sleeping bags for 266 00:12:51,559 --> 00:12:54,319 Speaker 2: this one. The advanced crewis are up there already and 267 00:12:55,120 --> 00:12:57,640 Speaker 2: be interesting at dinner this evening and anchorage to see 268 00:12:57,679 --> 00:13:01,680 Speaker 2: who's floating around on what country they're from. We turn 269 00:13:01,720 --> 00:13:06,360 Speaker 2: our attention to what's happening today in California. Yeah, not Texas, 270 00:13:06,360 --> 00:13:08,319 Speaker 2: but California. There's going to be a news conference a 271 00:13:08,320 --> 00:13:10,560 Speaker 2: couple hours from right now, Gavin Newsom set to kickoff 272 00:13:10,640 --> 00:13:17,079 Speaker 2: democrats reciprocal effort to Jerry Mander. It's apparently happening here 273 00:13:17,120 --> 00:13:22,400 Speaker 2: as Texas Republicans move forward with their plan to add 274 00:13:22,440 --> 00:13:24,920 Speaker 2: five seats. Now, we've talked about this until we're blue 275 00:13:24,920 --> 00:13:27,040 Speaker 2: in the face, no pun intended. 276 00:13:29,320 --> 00:13:30,360 Speaker 5: With our political panel. 277 00:13:30,360 --> 00:13:32,439 Speaker 2: I think we've talked about redistricting every single day here 278 00:13:32,440 --> 00:13:33,920 Speaker 2: for the last two weeks. Right, We're going to do 279 00:13:33,960 --> 00:13:37,640 Speaker 2: this again right now, because as California gets involved, the 280 00:13:37,720 --> 00:13:40,320 Speaker 2: cycle begins. Some think it would be a spin cycle 281 00:13:40,320 --> 00:13:43,040 Speaker 2: that involves maybe even up to a half a dozen 282 00:13:43,080 --> 00:13:47,760 Speaker 2: states at Indiana, Missouri, Florida. What's the congressional map going 283 00:13:47,840 --> 00:13:50,360 Speaker 2: to look like by the time this whole effort is 284 00:13:50,400 --> 00:13:52,520 Speaker 2: done there. They are on YouTube and whether us Live 285 00:13:52,559 --> 00:13:55,839 Speaker 2: on the radio Bloomberg Politics contributors Rick Davis and Genie 286 00:13:55,880 --> 00:13:59,160 Speaker 2: shanz No. Rick is our Republican strategist partner at Stone 287 00:13:59,160 --> 00:14:01,520 Speaker 2: Court Capital, and g a senior Democracy fellow at the 288 00:14:01,520 --> 00:14:04,480 Speaker 2: Center for the Study of the Presidency and Congress. You 289 00:14:04,520 --> 00:14:06,240 Speaker 2: ready for this, Genie, I don't think you wanted to 290 00:14:06,240 --> 00:14:08,599 Speaker 2: see it happen, But it looks like Governor Newsom is 291 00:14:08,640 --> 00:14:09,120 Speaker 2: going for it. 292 00:14:10,360 --> 00:14:12,800 Speaker 7: He absolutely is, And you know, I have to say, 293 00:14:12,840 --> 00:14:15,920 Speaker 7: as a political scientist, there's nothing we like more than 294 00:14:16,000 --> 00:14:18,719 Speaker 7: talking about the boring old issues of redistricting. 295 00:14:18,800 --> 00:14:21,040 Speaker 8: So I've been in my glory the last few weeks, 296 00:14:21,080 --> 00:14:23,960 Speaker 8: thanks so much to Governor Abbott. President Trump. 297 00:14:24,800 --> 00:14:27,840 Speaker 7: Yeah, he's going to go for it, despite the fact 298 00:14:27,880 --> 00:14:31,760 Speaker 7: that we've seen polls which suggest it as widely unpopular. 299 00:14:32,600 --> 00:14:35,240 Speaker 7: And that's something I don't think any of us are 300 00:14:35,280 --> 00:14:39,760 Speaker 7: surprised by. People don't trust politicians. They certainly don't want 301 00:14:39,760 --> 00:14:43,800 Speaker 7: them drawing districts for Californians. Twice now they voted for 302 00:14:43,840 --> 00:14:47,080 Speaker 7: an independent commission. Quite frankly, I was surprised the numbers 303 00:14:47,120 --> 00:14:50,680 Speaker 7: weren't even higher against it, and yet when you look 304 00:14:50,720 --> 00:14:53,480 Speaker 7: at and talk to people in focus groups and elsewhere 305 00:14:53,520 --> 00:14:56,800 Speaker 7: about whether they should do this, because the Republicans are 306 00:14:56,800 --> 00:14:59,680 Speaker 7: doing it in Texas, they sort of shrug and say, 307 00:14:59,680 --> 00:15:00,960 Speaker 7: this is like an arms race. 308 00:15:01,040 --> 00:15:02,920 Speaker 8: One does it, the other has to do it. So 309 00:15:03,720 --> 00:15:05,880 Speaker 8: it's going to be interesting to see. 310 00:15:05,640 --> 00:15:08,960 Speaker 7: What voters feel about this in the end, if California 311 00:15:09,040 --> 00:15:10,920 Speaker 7: goes forward with it. 312 00:15:10,920 --> 00:15:13,640 Speaker 2: It's interesting because apparently California doesn't really want to go 313 00:15:13,720 --> 00:15:15,840 Speaker 2: forward with This new poll that I'm reading about here 314 00:15:15,880 --> 00:15:20,000 Speaker 2: is Citrons Center poll in Politico today, Rick Davis shows 315 00:15:20,080 --> 00:15:23,240 Speaker 2: voters in California prefer keeping an independent line drawing panel 316 00:15:23,760 --> 00:15:26,360 Speaker 2: to determine the state's House seats by nearly a two 317 00:15:26,400 --> 00:15:29,320 Speaker 2: to one margin. Is this a mistake for Newsom? 318 00:15:30,440 --> 00:15:33,480 Speaker 9: Well, you know, look, I mean there's a generic issue here, 319 00:15:33,560 --> 00:15:37,440 Speaker 9: which is voters really dislike their own members of the legislature, right, 320 00:15:37,560 --> 00:15:40,280 Speaker 9: so it's not like they want to give them more power, 321 00:15:40,480 --> 00:15:45,000 Speaker 9: especially California voters where the legislature has been usurped by 322 00:15:45,040 --> 00:15:48,560 Speaker 9: all these bout referendums, whether it's making tax decisions or 323 00:15:48,840 --> 00:15:53,160 Speaker 9: drawing lines. A commission is always going to be a legislature. 324 00:15:53,200 --> 00:15:55,920 Speaker 9: But this has to be done through a campaign. They're 325 00:15:55,960 --> 00:15:58,440 Speaker 9: going to have to run a campaign to commence voters 326 00:15:58,960 --> 00:16:03,360 Speaker 9: that this, you know, retribution to the Texas redistricting is 327 00:16:03,440 --> 00:16:07,400 Speaker 9: worth it for them. And you know, frankly, I think 328 00:16:07,440 --> 00:16:10,400 Speaker 9: it's going to be an interesting campaign because if I 329 00:16:10,520 --> 00:16:13,360 Speaker 9: were running the Republican Party right now, I'd say, let's 330 00:16:13,360 --> 00:16:15,360 Speaker 9: get in there and mix it up with those guys, right, 331 00:16:15,400 --> 00:16:18,600 Speaker 9: I mean, like, this is a good thing for Republicans 332 00:16:18,640 --> 00:16:21,640 Speaker 9: to try and run a campaign against Usom because it's 333 00:16:21,800 --> 00:16:26,960 Speaker 9: his credibility that's at risk here, right. If Newsom stumbles 334 00:16:27,120 --> 00:16:30,040 Speaker 9: on this, it will hurt his chances of being the 335 00:16:30,080 --> 00:16:31,080 Speaker 9: nominee of the party. 336 00:16:32,080 --> 00:16:36,840 Speaker 2: Okay, well, you've talked about dummy mandering, not to be 337 00:16:36,960 --> 00:16:41,160 Speaker 2: confused with jerry mandering, Rick, And I'm wondering, Genie, if 338 00:16:41,160 --> 00:16:42,960 Speaker 2: you see that as a risk, just like it is 339 00:16:42,960 --> 00:16:47,240 Speaker 2: in California. Republicans can't count their chickens here until we 340 00:16:47,280 --> 00:16:50,040 Speaker 2: actually have these seats. They assume they're going to be Republicans. 341 00:16:50,040 --> 00:16:52,320 Speaker 2: Should Newsom assume that they'll all be Democratic? 342 00:16:53,600 --> 00:16:54,560 Speaker 8: No, And that's the thing. 343 00:16:54,640 --> 00:16:57,800 Speaker 7: This is a risk you cannot assume because let's not 344 00:16:57,880 --> 00:17:00,680 Speaker 7: forget no matter how well you try to draw these 345 00:17:00,720 --> 00:17:03,560 Speaker 7: districts and how much data you have, you still have 346 00:17:03,640 --> 00:17:06,280 Speaker 7: to run a campaign, you still have to have candidates. 347 00:17:06,480 --> 00:17:10,640 Speaker 7: There's still a whole environment of issues going on, including 348 00:17:10,680 --> 00:17:14,320 Speaker 7: the passage of a most unpopular, big beautiful bill. And 349 00:17:14,400 --> 00:17:16,760 Speaker 7: so you know, we look in Texas and we see 350 00:17:16,760 --> 00:17:19,560 Speaker 7: that Republicans are banking on the fact that Donald Trump 351 00:17:19,600 --> 00:17:21,000 Speaker 7: will do as well there. 352 00:17:21,000 --> 00:17:23,359 Speaker 8: As he did in twenty twenty four. 353 00:17:23,760 --> 00:17:26,639 Speaker 7: But you look back just one cycle earlier, in twenty 354 00:17:26,720 --> 00:17:30,080 Speaker 7: twenty Joe Biden won many of those districts, and Trump 355 00:17:30,200 --> 00:17:32,879 Speaker 7: the ones he did win, he won by a lesser margin. 356 00:17:33,280 --> 00:17:36,240 Speaker 7: Same thing goes on the other side with California. So 357 00:17:36,400 --> 00:17:39,800 Speaker 7: this is full of risk. You know, they are trying 358 00:17:39,840 --> 00:17:43,119 Speaker 7: to play this game. I think they might be better 359 00:17:43,160 --> 00:17:48,400 Speaker 7: off putting, you know, redistricting aside and focusing on passing 360 00:17:48,440 --> 00:17:51,480 Speaker 7: bills that are popular and putting up candidates and running 361 00:17:51,520 --> 00:17:55,720 Speaker 7: campaigns that are well funded and popular. So it can 362 00:17:55,760 --> 00:17:57,640 Speaker 7: be seen as a waste of money if you look 363 00:17:57,640 --> 00:17:58,840 Speaker 7: at it from that perspective. 364 00:18:00,040 --> 00:18:04,199 Speaker 2: It's been quite an exercise watching Gavin Newsom on Twitter 365 00:18:04,240 --> 00:18:06,520 Speaker 2: this week. Rick the last couple of days, including well 366 00:18:06,640 --> 00:18:09,840 Speaker 2: just one today right after we woke up this morning, 367 00:18:09,880 --> 00:18:12,679 Speaker 2: we saw this when your favorite governor, Gavin Christopher Newsom. 368 00:18:12,720 --> 00:18:14,720 Speaker 2: He's writing all of these as if Trump was writing them, 369 00:18:14,840 --> 00:18:18,320 Speaker 2: and they're in all caps. Offered the best, most amazing 370 00:18:18,359 --> 00:18:22,120 Speaker 2: deal in history. Stop rigging Texas maps in California won't 371 00:18:22,119 --> 00:18:25,439 Speaker 2: make ours more beautiful. Sadly, but no surprise, Donald was 372 00:18:25,480 --> 00:18:30,200 Speaker 2: too weak in Parenz's little hands to even write me back. 373 00:18:31,240 --> 00:18:34,200 Speaker 2: What's going on with the Gavin Newsom experiment? Rick Davis, 374 00:18:34,240 --> 00:18:36,960 Speaker 2: you've run presidential campaigns? Is that all this is about? 375 00:18:38,480 --> 00:18:43,000 Speaker 9: Look, it's all part of the Gavin Newsom campaign for 376 00:18:43,080 --> 00:18:44,640 Speaker 9: president in twenty twenty eight. 377 00:18:45,760 --> 00:18:49,720 Speaker 5: It's a dangerous game. Donald Trump has a history and a. 378 00:18:49,640 --> 00:18:53,320 Speaker 9: Personality that can sustain this kind of demeaning of people. 379 00:18:54,240 --> 00:18:55,479 Speaker 5: He's proven it over time. 380 00:18:55,880 --> 00:18:59,480 Speaker 9: When Republicans we're running against him in twenty sixteen, some 381 00:18:59,520 --> 00:19:01,560 Speaker 9: of them try the same thing and it was a 382 00:19:01,640 --> 00:19:05,840 Speaker 9: disaster for them. And so I think there's a big 383 00:19:05,880 --> 00:19:09,200 Speaker 9: caution sign out there for Gavin Newsom. And yet at 384 00:19:09,200 --> 00:19:12,439 Speaker 9: the same time, the one thing the Republicans in Texas 385 00:19:12,440 --> 00:19:16,439 Speaker 9: are doing is unifying the Democratic Party around Gavin Newsom. 386 00:19:16,520 --> 00:19:20,240 Speaker 9: And so you know there's a situation where the Democrats 387 00:19:20,240 --> 00:19:23,760 Speaker 9: were in a complete disarray until the Republicans in Texas 388 00:19:23,800 --> 00:19:25,399 Speaker 9: decided to start playing with maps. 389 00:19:26,920 --> 00:19:29,600 Speaker 2: How does this hit you, Genie, this kind of talk. 390 00:19:30,480 --> 00:19:33,040 Speaker 2: I mean, they're funny, as many know, he said in 391 00:19:33,040 --> 00:19:36,639 Speaker 2: a different tweet, Donald Taco Trump, author of Art of 392 00:19:36,680 --> 00:19:38,720 Speaker 2: the Deal, a book he should return to the library. 393 00:19:38,920 --> 00:19:41,160 Speaker 2: Just missed the best deal in history. He always chickens 394 00:19:41,200 --> 00:19:45,080 Speaker 2: out Tariff's China, but even a chicken should know a 395 00:19:45,080 --> 00:19:46,640 Speaker 2: good deal when he sees one. 396 00:19:47,600 --> 00:19:48,680 Speaker 5: Is he making you laugh? 397 00:19:49,440 --> 00:19:52,520 Speaker 2: Is he making you take him seriously as a presidential hopeful? 398 00:19:53,680 --> 00:19:56,040 Speaker 8: Yeah, that one was to me a bit cringey. 399 00:19:57,040 --> 00:19:59,120 Speaker 7: You know, I know I'm not the audience for it, 400 00:19:59,280 --> 00:20:02,719 Speaker 7: but you know, I think there's a danger for Gavin 401 00:20:02,840 --> 00:20:05,320 Speaker 7: Newsom and Rick just and talked about it, and I 402 00:20:05,359 --> 00:20:10,360 Speaker 7: would just add that people want authenticity and if this 403 00:20:10,440 --> 00:20:13,600 Speaker 7: doesn't come off as authentic, and certainly just look back 404 00:20:13,640 --> 00:20:16,399 Speaker 7: at our current Secretary of State Marco Rubio tried this 405 00:20:16,480 --> 00:20:18,720 Speaker 7: in twenty sixteen, not authentic at all. 406 00:20:19,200 --> 00:20:21,560 Speaker 8: You need to be who you are, that is what 407 00:20:21,680 --> 00:20:22,520 Speaker 8: people want. 408 00:20:23,000 --> 00:20:27,439 Speaker 7: So Gavin Newsome trying to be Donald Trump probably isn't 409 00:20:27,480 --> 00:20:31,320 Speaker 7: going to resonate with too many Democratic voters. And I 410 00:20:31,359 --> 00:20:34,919 Speaker 7: think that's the danger here, so he's going to have 411 00:20:35,000 --> 00:20:37,680 Speaker 7: to watch out for that. He should be Gavin Newsom, 412 00:20:38,080 --> 00:20:41,439 Speaker 7: and he should run as the person that he. 413 00:20:41,400 --> 00:20:43,840 Speaker 8: Is and to see if that resonates with voters. 414 00:20:43,880 --> 00:20:46,760 Speaker 7: So I think in this regard, I would say Pritzker 415 00:20:46,880 --> 00:20:49,639 Speaker 7: in the twenty twenty eight sweepstake so far, is doing 416 00:20:49,680 --> 00:20:53,159 Speaker 7: a slightly better job in that regard, clearly running but 417 00:20:53,280 --> 00:20:55,320 Speaker 7: not necessarily trying to be Donald Trump. 418 00:20:56,320 --> 00:20:58,960 Speaker 2: Well, it certainly reinforces the idea that the next presidential 419 00:20:58,960 --> 00:21:01,480 Speaker 2: election begins the the day after the election. 420 00:21:01,560 --> 00:21:02,000 Speaker 5: There's JB. 421 00:21:02,119 --> 00:21:06,680 Speaker 2: Pritsker right now, surrounded by Texas Democrats, who of course 422 00:21:06,720 --> 00:21:09,040 Speaker 2: went to places like Chicago, and it looks like they're 423 00:21:09,040 --> 00:21:11,080 Speaker 2: coming back home, which is why we're talking about this. 424 00:21:11,160 --> 00:21:16,240 Speaker 2: It'll allow Republicans to move forward with the plan in Texas. Guys, 425 00:21:16,240 --> 00:21:17,960 Speaker 2: we're going to be hearing from the president, the actual 426 00:21:18,000 --> 00:21:22,040 Speaker 2: president of the United States, presumably eight minutes from now, 427 00:21:22,119 --> 00:21:24,640 Speaker 2: although these are frequently not on time when it comes 428 00:21:24,680 --> 00:21:26,560 Speaker 2: to White House events. As we realize he's going to 429 00:21:26,560 --> 00:21:30,399 Speaker 2: be in the Oval Office to deliver remarks, as says 430 00:21:30,480 --> 00:21:33,639 Speaker 2: the presidential schedule today, we have really no real sense 431 00:21:33,680 --> 00:21:35,240 Speaker 2: of what he's going to be talking about. And when 432 00:21:35,280 --> 00:21:41,439 Speaker 2: we consider the importance of tomorrow, Rick, what will you 433 00:21:41,480 --> 00:21:45,600 Speaker 2: be looking for and listening for when Donald Trump starts 434 00:21:45,600 --> 00:21:48,240 Speaker 2: his address whatever he's talking about from the Oval Office, 435 00:21:48,280 --> 00:21:50,800 Speaker 2: He's about twenty four hours away from sitting down with 436 00:21:50,920 --> 00:21:53,800 Speaker 2: Vladimir Putin. What will you be looking for when it 437 00:21:53,840 --> 00:21:57,040 Speaker 2: comes to his demeanor and his posture today? 438 00:21:58,200 --> 00:22:01,560 Speaker 9: Yeah, look, I mean of angry Donald Trump is a 439 00:22:01,600 --> 00:22:05,560 Speaker 9: good thing. If going into a meeting with Vladimir Putin, right, 440 00:22:06,080 --> 00:22:11,480 Speaker 9: if he's happy and and playing the deal game, then 441 00:22:11,600 --> 00:22:17,320 Speaker 9: it's probably advantaged Putin, uh, disadvantaged Zelensky if he's mad 442 00:22:17,359 --> 00:22:19,800 Speaker 9: at Putin for gaming him. And I mean, like, I 443 00:22:19,840 --> 00:22:22,160 Speaker 9: hope someone in the White House is explained to him 444 00:22:22,160 --> 00:22:25,480 Speaker 9: that all this flowery language that Putin's pushing out there 445 00:22:25,760 --> 00:22:28,159 Speaker 9: about giving him an arms controlled deal, and you know, 446 00:22:28,200 --> 00:22:31,240 Speaker 9: we got all this economic stuff we could do together. 447 00:22:31,480 --> 00:22:33,919 Speaker 9: You know, don't pay any attention to that war on 448 00:22:33,960 --> 00:22:35,040 Speaker 9: the Ukraine border. 449 00:22:35,480 --> 00:22:38,440 Speaker 5: You know, think of us as a partner in power. 450 00:22:39,320 --> 00:22:39,520 Speaker 3: You know. 451 00:22:40,040 --> 00:22:42,760 Speaker 9: I hope he actually reacts to like what kind of 452 00:22:42,800 --> 00:22:46,399 Speaker 9: dummy do you think I am? Because one it blows 453 00:22:46,440 --> 00:22:48,959 Speaker 9: Putin's strategy, and two it puts him in the right 454 00:22:49,000 --> 00:22:51,480 Speaker 9: frame of mind to go into that meeting, because if 455 00:22:51,480 --> 00:22:53,480 Speaker 9: he's going in just to say I have to come 456 00:22:53,520 --> 00:22:56,439 Speaker 9: out with a deal, then then it's likely to be 457 00:22:56,480 --> 00:22:58,639 Speaker 9: a bad deal for vlat for Zelenski. 458 00:23:00,160 --> 00:23:03,800 Speaker 2: Interesting, Genie, we only have about thirty seconds left here, 459 00:23:03,800 --> 00:23:06,679 Speaker 2: about a minute, I should say, float of the idea. 460 00:23:06,680 --> 00:23:08,879 Speaker 2: The President floated the idea on Fox News Radio today 461 00:23:08,880 --> 00:23:13,560 Speaker 2: of Zelenski taking part in this meeting in Alaska. Is 462 00:23:13,600 --> 00:23:16,600 Speaker 2: that just part of the rope and dope gomen into 463 00:23:16,600 --> 00:23:19,119 Speaker 2: this thing? Or could we actually see the Ukrainian president there? 464 00:23:20,840 --> 00:23:24,480 Speaker 7: Certainly Zelenski wants to be there. I can't imagine Vladimir 465 00:23:24,520 --> 00:23:27,679 Speaker 7: Putin has changed his mind about sitting down with the 466 00:23:27,760 --> 00:23:29,640 Speaker 7: three of them, so I doubt it happen. 467 00:23:29,680 --> 00:23:29,880 Speaker 5: Yeah. 468 00:23:29,920 --> 00:23:33,480 Speaker 2: Bloomberg Politics contributors Genie Shanzano and Rick Davis the best 469 00:23:33,520 --> 00:23:33,840 Speaker 2: we have. 470 00:23:35,080 --> 00:23:37,240 Speaker 5: Stay with us on Balance of Power. We'll have much 471 00:23:37,280 --> 00:23:38,480 Speaker 5: more coming up after this. 472 00:23:43,640 --> 00:23:47,120 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 473 00:23:47,200 --> 00:23:50,280 Speaker 1: us live weekdays at noon and five pm Eastern on 474 00:23:50,400 --> 00:23:53,600 Speaker 1: Apple Cocklay and Android Auto with the Bloomberg Business app. 475 00:23:53,680 --> 00:23:56,680 Speaker 1: You can also listen live on Amazon Alexa from our 476 00:23:56,720 --> 00:24:01,200 Speaker 1: flagship New York station just say Alexa Bloomberg eleven thirty. 477 00:24:02,520 --> 00:24:05,879 Speaker 2: We keep tabs on the connection here between Washington and 478 00:24:05,880 --> 00:24:08,040 Speaker 2: Wall Street and get back to Trollie about twenty minutes, 479 00:24:08,080 --> 00:24:10,320 Speaker 2: even less than that for the latest on the Thursday trade. 480 00:24:10,359 --> 00:24:12,119 Speaker 5: It's PPI day could be worse. 481 00:24:12,160 --> 00:24:15,480 Speaker 2: We're sagging a bit, coming off of very recent all 482 00:24:15,520 --> 00:24:17,600 Speaker 2: time high, So we don't want to paint a picture 483 00:24:17,640 --> 00:24:19,800 Speaker 2: like Wall Street is freaking out about the data, but 484 00:24:19,840 --> 00:24:23,639 Speaker 2: it is raising questions here about the trajectory of inflation, 485 00:24:24,200 --> 00:24:26,840 Speaker 2: different questions every day as we kind of find our 486 00:24:26,880 --> 00:24:29,640 Speaker 2: way with a new wrinkle here, filling in the blanks 487 00:24:29,680 --> 00:24:32,280 Speaker 2: on the way this is starting to take shape here. 488 00:24:32,320 --> 00:24:35,000 Speaker 2: We're going to talk to Edward Harrison about that in 489 00:24:35,040 --> 00:24:35,440 Speaker 2: a moment. 490 00:24:35,680 --> 00:24:37,480 Speaker 5: Thanks for being with us on the Thursday edition. 491 00:24:37,520 --> 00:24:39,280 Speaker 2: You made it to a little Friday here on Bloomberg 492 00:24:39,359 --> 00:24:41,920 Speaker 2: Radio Satellite radio channel one twenty one. You can watch 493 00:24:41,920 --> 00:24:45,640 Speaker 2: the radio on TV by going to Bloomberg Originals or YouTube, 494 00:24:45,800 --> 00:24:48,359 Speaker 2: where I encourage you to search Bloomberg Business News Lives. 495 00:24:48,359 --> 00:24:50,080 Speaker 2: The coolest thing we have going all of our shows 496 00:24:50,080 --> 00:24:52,639 Speaker 2: from Washington to New York throughout the day. You can 497 00:24:52,680 --> 00:24:54,880 Speaker 2: pause it, back it up when you hear something good. 498 00:24:55,040 --> 00:24:58,280 Speaker 2: There's nothing like it on YouTube. An hour from now, 499 00:24:58,280 --> 00:25:00,199 Speaker 2: we may be walking you into the Oval Off. At 500 00:25:00,280 --> 00:25:02,440 Speaker 2: least that's what the White House is telling us. Could 501 00:25:02,480 --> 00:25:04,400 Speaker 2: be the big event of the day here for the President. 502 00:25:05,119 --> 00:25:07,159 Speaker 2: He had his intelligence briefing a little while ago and 503 00:25:07,200 --> 00:25:09,880 Speaker 2: he's set to quote unquote delivery remarks and we've gone 504 00:25:09,880 --> 00:25:10,639 Speaker 2: through this before. 505 00:25:11,119 --> 00:25:12,479 Speaker 5: That could mean a lot of things. 506 00:25:12,880 --> 00:25:14,960 Speaker 2: And when they bring the pool into the Oval Office 507 00:25:15,800 --> 00:25:19,080 Speaker 2: featuring Lyndell TV today, I just tend to take a 508 00:25:19,119 --> 00:25:24,280 Speaker 2: look at the pool assignment. Anything could happen right, Questions 509 00:25:24,320 --> 00:25:26,199 Speaker 2: start popping, and I suspect we are going to hear 510 00:25:26,240 --> 00:25:28,680 Speaker 2: about the big meeting tomorrow and we'll talk more about 511 00:25:28,720 --> 00:25:31,600 Speaker 2: that later this hour with Michelle jam Risco. The President 512 00:25:31,640 --> 00:25:33,399 Speaker 2: will be wheels up first thing in the morning to 513 00:25:33,480 --> 00:25:36,119 Speaker 2: Alaska to meet Vladimir Putin. This is going to be 514 00:25:36,160 --> 00:25:38,120 Speaker 2: something we're going to have special coverage throughout the day 515 00:25:38,480 --> 00:25:38,800 Speaker 2: on that. 516 00:25:39,280 --> 00:25:40,640 Speaker 5: So we begin with the PPI. 517 00:25:40,720 --> 00:25:43,760 Speaker 2: You've been hearing the story here, warming up, overheated, whatever 518 00:25:43,880 --> 00:25:47,960 Speaker 2: term you want to use. Scott Bessen, the Treasury Secretary, 519 00:25:48,000 --> 00:25:51,320 Speaker 2: maybe rethinking his thought of one hundred and fifty to 520 00:25:51,320 --> 00:25:55,240 Speaker 2: one hundred and seventy five BIPs interest rate cut in September. 521 00:25:55,240 --> 00:25:57,800 Speaker 2: He says we should have at least a point and 522 00:25:57,840 --> 00:25:59,280 Speaker 2: a half lopped off the top. 523 00:25:59,440 --> 00:26:02,359 Speaker 5: That was yesyesterday on Bloomberg. Remember we talked about this. 524 00:26:02,800 --> 00:26:05,560 Speaker 2: Following his great interview on Bloomberg, Surveillance showed up on 525 00:26:05,600 --> 00:26:07,840 Speaker 2: Fox Business with a slightly different tune today. 526 00:26:07,880 --> 00:26:08,200 Speaker 5: Listen. 527 00:26:08,800 --> 00:26:11,960 Speaker 10: I didn't tell the Fed what to do. What I 528 00:26:12,160 --> 00:26:16,480 Speaker 10: said was that to get to a neutral rate on 529 00:26:16,800 --> 00:26:20,159 Speaker 10: interest that that would be approximately one hundred and fifty 530 00:26:20,200 --> 00:26:23,159 Speaker 10: basis point cut. I did not call for them to 531 00:26:23,280 --> 00:26:26,880 Speaker 10: get there. The other thing that I said was that 532 00:26:27,040 --> 00:26:32,879 Speaker 10: perhaps because they had bad BLS data in June and July, 533 00:26:33,240 --> 00:26:38,199 Speaker 10: that perhaps perhaps a fifty basis point cut in September 534 00:26:38,440 --> 00:26:39,160 Speaker 10: was warranted. 535 00:26:40,680 --> 00:26:43,320 Speaker 2: Okay, we'll see about that. He's not telling them what 536 00:26:43,400 --> 00:26:46,000 Speaker 2: to do. It's about the neutral rate. 537 00:26:47,160 --> 00:26:48,000 Speaker 5: Of course. The market. 538 00:26:48,040 --> 00:26:50,280 Speaker 2: By the way, it's not just like Scott Bessen is 539 00:26:50,320 --> 00:26:53,480 Speaker 2: some sort of outlier. The market's been pricing in basically 540 00:26:53,520 --> 00:26:57,280 Speaker 2: what he suggested yesterday point and a half. 541 00:26:59,200 --> 00:27:00,399 Speaker 5: Maybe not so much today. 542 00:27:01,240 --> 00:27:05,280 Speaker 2: As I point you to the Everything Risk newsletter, the 543 00:27:05,280 --> 00:27:08,359 Speaker 2: great Edward Harrison writing that for us here at Bloomberg, 544 00:27:08,760 --> 00:27:12,680 Speaker 2: bringing us back to the President's truth social post about 545 00:27:12,720 --> 00:27:17,400 Speaker 2: Goldman Sachs a couple of days ago. Edward, maybe mister 546 00:27:17,480 --> 00:27:20,480 Speaker 2: Solomon is not going to just start working as a DJ, 547 00:27:21,320 --> 00:27:22,639 Speaker 2: as the President suggested. 548 00:27:23,640 --> 00:27:25,120 Speaker 5: It's great to have you welcome back. 549 00:27:26,200 --> 00:27:29,320 Speaker 2: Your newsletter touches on the big concern right now in 550 00:27:29,440 --> 00:27:31,840 Speaker 2: Washington and on Wall Street. And the question is how 551 00:27:31,840 --> 00:27:34,440 Speaker 2: long are producer is going to keep carrying the weight 552 00:27:34,480 --> 00:27:35,320 Speaker 2: here for consumers? 553 00:27:35,640 --> 00:27:39,440 Speaker 6: Yeah, that is the question, Joe. I think that Goldman, 554 00:27:39,520 --> 00:27:42,800 Speaker 6: they laid it out pretty well. They said that it's 555 00:27:42,800 --> 00:27:45,440 Speaker 6: about less than a quarter now, but at some point 556 00:27:45,480 --> 00:27:47,920 Speaker 6: it's going to be about two thirds that they're going 557 00:27:48,000 --> 00:27:51,320 Speaker 6: to pass on to the consumers. And so we're seeing 558 00:27:51,480 --> 00:27:55,640 Speaker 6: now that that inflation that that's hitting them is showing 559 00:27:55,720 --> 00:28:00,159 Speaker 6: up in the statistics and likely therefore will increase they 560 00:28:00,200 --> 00:28:03,160 Speaker 6: show up for consumers. 561 00:28:02,920 --> 00:28:05,560 Speaker 5: In final demand PPI fees PCE. 562 00:28:06,160 --> 00:28:07,960 Speaker 2: Well, well, that tell us when it comes out, knowing 563 00:28:08,000 --> 00:28:10,640 Speaker 2: that's the Fed's preferred gauge, you. 564 00:28:10,560 --> 00:28:13,480 Speaker 6: Know, it'll be interesting to see how the investment banks 565 00:28:13,520 --> 00:28:16,760 Speaker 6: mark up their numbers. But clearly the number has to 566 00:28:16,800 --> 00:28:20,600 Speaker 6: be higher than we had initially anticipated. So the numbers 567 00:28:20,720 --> 00:28:25,600 Speaker 6: are not unfavorable for a twenty five basis point cut. 568 00:28:25,720 --> 00:28:29,720 Speaker 6: But they're completely unfavorable for fifty basis point cut, which 569 00:28:29,760 --> 00:28:31,520 Speaker 6: is what Scott Best was talking about. You know the 570 00:28:31,520 --> 00:28:34,520 Speaker 6: market Actually there were a bets that were being placed 571 00:28:35,200 --> 00:28:40,320 Speaker 6: for fifty basis points. I think that that's off the 572 00:28:40,360 --> 00:28:42,840 Speaker 6: table now. And now it's a question of do they 573 00:28:42,840 --> 00:28:44,680 Speaker 6: cut it all or do they go twenty. 574 00:28:44,880 --> 00:28:45,840 Speaker 5: Do they cut it all? 575 00:28:46,400 --> 00:28:47,760 Speaker 2: You don't want to be around the White House in 576 00:28:47,800 --> 00:28:50,160 Speaker 2: September if they don't cut at all. I want to 577 00:28:50,160 --> 00:28:53,200 Speaker 2: put you back on the August twelfth Truth Social the 578 00:28:53,200 --> 00:28:55,920 Speaker 2: post that you mentioned here about Goldman Sachs, the President said, 579 00:28:56,040 --> 00:28:58,040 Speaker 2: it has been shown that for the most part, consumers 580 00:28:58,040 --> 00:29:01,480 Speaker 2: are not even paying these tariffs. Is mostly companies and governments, 581 00:29:01,520 --> 00:29:05,040 Speaker 2: many of them foreign, picking up the tabs. But David 582 00:29:05,080 --> 00:29:07,360 Speaker 2: Solomon and gold and Sachs refuse to give credit where 583 00:29:07,360 --> 00:29:09,000 Speaker 2: it is due. They made a bad prediction a long 584 00:29:09,040 --> 00:29:11,280 Speaker 2: time ago, he says, on both market repercussion and the 585 00:29:11,360 --> 00:29:14,280 Speaker 2: terrorists themselves, and they were wrong, just like they are 586 00:29:14,320 --> 00:29:17,240 Speaker 2: wrong about so much else. I think David should go 587 00:29:17,280 --> 00:29:20,280 Speaker 2: out get himself a new economist, or maybe ought to 588 00:29:20,320 --> 00:29:24,680 Speaker 2: just focus on being a DJ now. Peter Navarro sat 589 00:29:24,720 --> 00:29:27,040 Speaker 2: in that very same chair that you're in a couple 590 00:29:27,040 --> 00:29:29,840 Speaker 2: of days ago, and made a similar point. He said, 591 00:29:30,040 --> 00:29:34,360 Speaker 2: foreigners are picking up the tab for inflation. Is there 592 00:29:34,400 --> 00:29:35,080 Speaker 2: any truth to that? 593 00:29:35,760 --> 00:29:39,080 Speaker 6: You know, there is some truth that the likes of Walmart, 594 00:29:39,360 --> 00:29:47,880 Speaker 6: they have pricing power with their lines, you know, the 595 00:29:47,880 --> 00:29:52,320 Speaker 6: people who they are sourcing from. However, it isn't true 596 00:29:52,440 --> 00:29:56,400 Speaker 6: that the overwhelming majority of the tariffs are going to 597 00:29:56,440 --> 00:29:59,440 Speaker 6: be taken up by foreigners. It's going to be a 598 00:29:59,520 --> 00:30:07,760 Speaker 6: combina of the suppliers, the companies, and the consumers. And 599 00:30:07,800 --> 00:30:11,560 Speaker 6: now that we actually have a policy, we know we 600 00:30:11,640 --> 00:30:14,880 Speaker 6: have a framework in place, you know, fifteen percent as 601 00:30:15,280 --> 00:30:18,440 Speaker 6: the baseline. Companies can work with that, and they're now 602 00:30:18,480 --> 00:30:21,040 Speaker 6: going to increasingly pass that through. This is what Goldman 603 00:30:21,120 --> 00:30:24,800 Speaker 6: Sachs was saying, and this is what we're starting to see. 604 00:30:24,880 --> 00:30:26,640 Speaker 5: So they probably won't get a new chief economist. 605 00:30:27,040 --> 00:30:31,080 Speaker 2: No, I guess you had something going there. They'd be 606 00:30:31,120 --> 00:30:33,320 Speaker 2: lucky to have you. I have to mention IPO. We 607 00:30:33,360 --> 00:30:35,120 Speaker 2: got another IPO today. This has been a daily thing 608 00:30:35,120 --> 00:30:38,520 Speaker 2: here lately. The new issues market is happening. My Acts 609 00:30:38,800 --> 00:30:42,800 Speaker 2: Miami International just opened thirty one dollars sixty five cents 610 00:30:42,800 --> 00:30:45,040 Speaker 2: the ipo price was at twenty three, so we've already 611 00:30:45,080 --> 00:30:47,440 Speaker 2: got a nice bit underneath the stock. It's up thirty 612 00:30:47,480 --> 00:30:50,480 Speaker 2: four percent thirty three percent right now from the ipo 613 00:30:50,560 --> 00:30:55,640 Speaker 2: price here bop boipo. We're specializing in IPOs around here. 614 00:30:55,720 --> 00:30:58,320 Speaker 2: Producer James tells me every morning what's about to go public. 615 00:30:59,280 --> 00:31:02,320 Speaker 2: We don't buy the IPOs because well, you can't do 616 00:31:02,360 --> 00:31:03,560 Speaker 2: that when you work in this business. 617 00:31:03,560 --> 00:31:04,160 Speaker 5: But there you have it. 618 00:31:04,240 --> 00:31:06,800 Speaker 2: Miami International thirty one sixty five will keep tabs on 619 00:31:06,840 --> 00:31:08,920 Speaker 2: at thirty one to ten if you're playing along in 620 00:31:08,960 --> 00:31:11,360 Speaker 2: your home game. That's pretty nice. Thirty five percent pop. Edward, 621 00:31:11,400 --> 00:31:13,960 Speaker 2: I'll tell you what if this everything risk? People are 622 00:31:14,000 --> 00:31:15,800 Speaker 2: embracing it at the moment, and that's kind of what 623 00:31:15,840 --> 00:31:17,400 Speaker 2: I want to ask you about. When you consider the 624 00:31:17,480 --> 00:31:21,080 Speaker 2: risk that you're describing with where we could be in 625 00:31:21,120 --> 00:31:23,640 Speaker 2: six months, it's almost impossible to gauge what. 626 00:31:23,560 --> 00:31:26,480 Speaker 5: Do you make of the market basically an all time high, you. 627 00:31:26,440 --> 00:31:29,400 Speaker 6: Know, I think that the market has discounted all tariff 628 00:31:29,440 --> 00:31:31,920 Speaker 6: news until it affects the economy. I mean, when we 629 00:31:31,960 --> 00:31:35,520 Speaker 6: look back and we think about what's happened. We had 630 00:31:35,520 --> 00:31:39,840 Speaker 6: a spike in the Vicks to forty and that was 631 00:31:40,040 --> 00:31:42,640 Speaker 6: you know, all out panic. And the reason is is 632 00:31:42,680 --> 00:31:46,640 Speaker 6: because stocks are fully valued. Bank of America they had 633 00:31:46,640 --> 00:31:49,760 Speaker 6: a survey recently. Ninety one percent of fund manager said 634 00:31:50,120 --> 00:31:52,560 Speaker 6: that they think that US equities are overvalued. So it's 635 00:31:52,640 --> 00:31:57,080 Speaker 6: very difficult to go higher on those expectations unless you 636 00:31:57,200 --> 00:32:00,160 Speaker 6: leg into it as a result of the economy. If 637 00:32:00,160 --> 00:32:03,000 Speaker 6: the economy falls apart, then you have a big problem. 638 00:32:03,240 --> 00:32:08,280 Speaker 6: And that's what we see, and the market is going 639 00:32:08,320 --> 00:32:11,840 Speaker 6: to boil over. It's going to continue to drift higher 640 00:32:12,400 --> 00:32:15,960 Speaker 6: until we have any sort of hiccup that suggests that, 641 00:32:16,760 --> 00:32:18,280 Speaker 6: you know, the economy is about to fall apart. 642 00:32:18,360 --> 00:32:19,920 Speaker 5: Drift high is an interesting way to put it. 643 00:32:19,960 --> 00:32:21,400 Speaker 2: And you know, we're looking at a vix right now 644 00:32:21,560 --> 00:32:24,040 Speaker 2: fifteen the S and P five hundred is down a 645 00:32:24,160 --> 00:32:27,440 Speaker 2: quarter of a percent in this environment is pretty remarkable. 646 00:32:27,440 --> 00:32:28,880 Speaker 5: So the investors saying, call me when it. 647 00:32:28,800 --> 00:32:34,120 Speaker 6: Matters exactly exactly, so it won't matter unless it affects 648 00:32:34,120 --> 00:32:37,680 Speaker 6: the overall economy. I think that what we saw what 649 00:32:37,720 --> 00:32:40,959 Speaker 6: we saw with March twenty twenty, and you know, the 650 00:32:41,000 --> 00:32:45,240 Speaker 6: ability of the FED and of policymakers to paper over 651 00:32:46,000 --> 00:32:48,160 Speaker 6: cracks in the economy even then when we had a 652 00:32:48,240 --> 00:32:52,080 Speaker 6: very short recession. Stocks were able to power higher after that, 653 00:32:52,120 --> 00:32:56,840 Speaker 6: and so that's an ingrained behavior. It's almost like Pavlov's 654 00:32:56,920 --> 00:33:00,360 Speaker 6: dogs who understand that this is where things are until 655 00:33:00,440 --> 00:33:02,960 Speaker 6: bad things happen, Right, They're gonna keep on going high. 656 00:33:03,000 --> 00:33:04,120 Speaker 5: You're great, Edward Harrison. 657 00:33:04,200 --> 00:33:06,760 Speaker 2: Look for the Everything Risk newsletter to follow up on 658 00:33:06,800 --> 00:33:07,920 Speaker 2: the conversation we're having. 659 00:33:07,960 --> 00:33:09,040 Speaker 5: Always great to have you, Edward. 660 00:33:09,080 --> 00:33:10,760 Speaker 2: Thank you so much for the insights as we watch 661 00:33:10,800 --> 00:33:15,400 Speaker 2: Wall Street and Washington together, they cannot be separated these days. 662 00:33:17,400 --> 00:33:19,840 Speaker 5: Thanks for listening to the Balance of Power podcast. 663 00:33:20,440 --> 00:33:23,560 Speaker 2: Make sure to subscribe if you haven't already, at Apple, Spotify, 664 00:33:23,680 --> 00:33:26,240 Speaker 2: or wherever you get your podcasts, and you can find 665 00:33:26,320 --> 00:33:29,560 Speaker 2: us live every weekday from Washington, DC at noontime Eastern 666 00:33:29,840 --> 00:33:31,320 Speaker 2: at Bloomberg dot com.