1 00:00:02,920 --> 00:00:10,600 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the 2 00:00:10,640 --> 00:00:14,560 Speaker 1: Bloomberg Balance of Power podcast. Catch Just Live weekdays at 3 00:00:14,560 --> 00:00:17,239 Speaker 1: noon Eastern on Appocarplay and then Proud Ato with the 4 00:00:17,239 --> 00:00:21,280 Speaker 1: Bloomberg Business app. Listen on demand wherever you get your podcasts, 5 00:00:21,360 --> 00:00:25,360 Speaker 1: or watch us live on YouTube. 6 00:00:25,960 --> 00:00:29,120 Speaker 2: My colleague Kaylee Lines, is back for a second day now, 7 00:00:29,160 --> 00:00:33,000 Speaker 2: having heard briefings from authorities. Let's get the latest right 8 00:00:33,000 --> 00:00:37,040 Speaker 2: now on this recovery mission. It's a rainy day in Baltimore, Kaylee, 9 00:00:37,080 --> 00:00:37,520 Speaker 2: what can. 10 00:00:37,400 --> 00:00:38,040 Speaker 3: You tell us. 11 00:00:40,440 --> 00:00:44,080 Speaker 4: Rainy indeed, which is complicating the recovery efforts that are underway. 12 00:00:44,120 --> 00:00:46,640 Speaker 4: That together with the wind, the choppiness of the water, 13 00:00:46,720 --> 00:00:49,320 Speaker 4: the low visibility, and of course the massive amounts of 14 00:00:49,360 --> 00:00:52,440 Speaker 4: debris that workers are dealing with and trying to recover 15 00:00:52,520 --> 00:00:56,000 Speaker 4: the six individuals construction workers who are on the bridge 16 00:00:56,040 --> 00:00:58,880 Speaker 4: when it collapsed to our presumed dead at this time. Now, 17 00:00:58,960 --> 00:01:01,600 Speaker 4: as you say, we have a number of press gatherings 18 00:01:02,040 --> 00:01:04,480 Speaker 4: happening here over the course of the last day and 19 00:01:04,560 --> 00:01:07,440 Speaker 4: a half. We heard earlier today from the Maryland Governor 20 00:01:07,520 --> 00:01:09,880 Speaker 4: Wes Moore, who was talking about how recovery is his 21 00:01:10,000 --> 00:01:13,240 Speaker 4: number one priority and when asked questions about the investigation, said, 22 00:01:13,319 --> 00:01:15,760 Speaker 4: right now, it's still is simply too early to know 23 00:01:16,200 --> 00:01:18,479 Speaker 4: many things. He also, though, did point that he will 24 00:01:18,520 --> 00:01:21,520 Speaker 4: be working together with officials here in the state of Maryland, 25 00:01:21,560 --> 00:01:24,880 Speaker 4: as well as the Congressional delegation in Washington and federal 26 00:01:24,880 --> 00:01:27,560 Speaker 4: authorities to make sure funding is secured, not just for 27 00:01:27,640 --> 00:01:30,119 Speaker 4: the rebuilding of the bridge, which of course President Biden 28 00:01:30,160 --> 00:01:33,399 Speaker 4: said will be paid for federally. Yesterday, he promised that 29 00:01:33,440 --> 00:01:36,280 Speaker 4: although Congress will need to sign on, but also locally, 30 00:01:36,319 --> 00:01:39,480 Speaker 4: the Maryland State Legislature does have efforts underway as of 31 00:01:39,560 --> 00:01:42,920 Speaker 4: today for income replacement for the thousands of individuals who 32 00:01:43,000 --> 00:01:45,880 Speaker 4: will be affected by the closure of the Port of Baltimore, 33 00:01:45,880 --> 00:01:48,520 Speaker 4: which of course cannot operate as normal at this time 34 00:01:48,560 --> 00:01:50,600 Speaker 4: and won't be able to do so until all the 35 00:01:50,640 --> 00:01:54,000 Speaker 4: debris and the Dolly, the vessel itself has actually cleared 36 00:01:54,000 --> 00:01:54,560 Speaker 4: the waterway. 37 00:01:55,640 --> 00:01:57,400 Speaker 2: We don't have a sense of when they can get 38 00:01:57,400 --> 00:01:59,360 Speaker 2: that boat out of the way. Dewey Kyley, I know 39 00:01:59,400 --> 00:02:04,240 Speaker 2: there are twins two other ships stranded blocked essentially inside 40 00:02:04,320 --> 00:02:07,160 Speaker 2: the port. I presume they can't leave until the Dolly does. 41 00:02:09,520 --> 00:02:11,480 Speaker 4: They can't leave, no one else can get in it 42 00:02:11,520 --> 00:02:14,960 Speaker 4: really is frozen until all of the waterway can be 43 00:02:15,000 --> 00:02:17,919 Speaker 4: declared safe for vessels to transit once again. And as 44 00:02:17,960 --> 00:02:20,680 Speaker 4: for time, Joe, all officials we have spoken with us 45 00:02:20,760 --> 00:02:23,520 Speaker 4: far have been very reluctant to put a firm time 46 00:02:23,680 --> 00:02:26,600 Speaker 4: estimate on the reopening of the port, or, of course, 47 00:02:26,639 --> 00:02:28,800 Speaker 4: the reconstruction of the bridge for that matter, which is 48 00:02:28,880 --> 00:02:31,440 Speaker 4: likely to be a much longer term project. I know 49 00:02:31,480 --> 00:02:34,480 Speaker 4: you'll be speaking with Secretary Buddha Judge later on today, 50 00:02:34,520 --> 00:02:36,280 Speaker 4: and I'm sure he will reiterate some of what we 51 00:02:36,320 --> 00:02:38,399 Speaker 4: heard from him yesterday about how this is not going 52 00:02:38,440 --> 00:02:40,160 Speaker 4: to be quick, it's not going to be easy. He 53 00:02:40,200 --> 00:02:43,040 Speaker 4: also said it's not going to be inexpensive. We are 54 00:02:43,080 --> 00:02:46,239 Speaker 4: talking months, if not years, in terms of reconstruction, and 55 00:02:46,280 --> 00:02:49,000 Speaker 4: it could potentially be months until the Port of Baltimore 56 00:02:49,080 --> 00:02:51,280 Speaker 4: is flowing and importing and exporting is happening out of 57 00:02:51,320 --> 00:02:54,120 Speaker 4: here once again. At this point, it's just really difficult 58 00:02:54,200 --> 00:02:55,000 Speaker 4: to know for certain. 59 00:02:56,160 --> 00:03:00,240 Speaker 2: Do you see boats out toward the Dolly Kaylee that 60 00:03:00,280 --> 00:03:03,240 Speaker 2: the NTSB managed to board the ship last night they 61 00:03:03,240 --> 00:03:06,840 Speaker 2: got the equivalent of the black box from the Dolly. 62 00:03:07,240 --> 00:03:09,840 Speaker 2: Are they out there now or was that kind of 63 00:03:10,080 --> 00:03:11,160 Speaker 2: a one time mission. 64 00:03:13,639 --> 00:03:16,200 Speaker 4: No, they will continue to work aboard the vessel. I 65 00:03:16,240 --> 00:03:19,200 Speaker 4: actually did speak with an official from the NTSB earlier 66 00:03:19,240 --> 00:03:21,400 Speaker 4: this morning who said they do plan to board today. 67 00:03:21,400 --> 00:03:23,560 Speaker 4: There is a twenty four person team who will be 68 00:03:23,600 --> 00:03:26,520 Speaker 4: part of this investigation, and it's not just about getting 69 00:03:26,520 --> 00:03:28,440 Speaker 4: the data recorders, which of course, as you say, they 70 00:03:28,480 --> 00:03:32,040 Speaker 4: have obtained one, but also about conducting interviews on those 71 00:03:32,080 --> 00:03:34,000 Speaker 4: of board, really trying to get an understanding of what 72 00:03:34,120 --> 00:03:36,520 Speaker 4: exactly was happening on the vessel in the moments up 73 00:03:36,520 --> 00:03:40,520 Speaker 4: to it losing power, losing propulsion and ultimately colliding with 74 00:03:40,640 --> 00:03:44,240 Speaker 4: the bridge. Working with counterparts in Singapore as well, considering 75 00:03:44,280 --> 00:03:47,360 Speaker 4: this was a Singapore flagged vessel and the owners and 76 00:03:47,400 --> 00:03:49,600 Speaker 4: operators have to be considered here as well. So that's 77 00:03:49,600 --> 00:03:51,960 Speaker 4: an investigation that likely too, is going to play out 78 00:03:51,960 --> 00:03:54,200 Speaker 4: over the course of some period of time. As for 79 00:03:54,280 --> 00:03:57,160 Speaker 4: what is actually happening on the water, we do know 80 00:03:57,240 --> 00:04:00,840 Speaker 4: that there are sonar operations underw The Coast Guard is 81 00:04:00,880 --> 00:04:03,680 Speaker 4: working actively with the Maryland State Police, The FBI is 82 00:04:03,720 --> 00:04:06,200 Speaker 4: here as well. The Army Corps of Engineers will be 83 00:04:06,280 --> 00:04:08,560 Speaker 4: involved in this. Really, you are talking about a cross 84 00:04:08,600 --> 00:04:11,520 Speaker 4: agency kind of cooperation that is happening at the state 85 00:04:11,560 --> 00:04:14,000 Speaker 4: and federal level here Joe and all of these workers 86 00:04:14,000 --> 00:04:17,719 Speaker 4: that have been working essentially since six am this morning 87 00:04:17,720 --> 00:04:19,800 Speaker 4: when I got here, that is when this recovery effort 88 00:04:19,800 --> 00:04:20,880 Speaker 4: officially started today. 89 00:04:21,560 --> 00:04:23,359 Speaker 2: Well, you're really bringing that to life for us, Kayleie, 90 00:04:23,400 --> 00:04:25,960 Speaker 2: thank you so much for the reporting. Get yourself back 91 00:04:26,000 --> 00:04:29,200 Speaker 2: to Washington safely. Kaylee Lines, who would normally be in 92 00:04:29,240 --> 00:04:31,479 Speaker 2: the share next to me here on this broadcast, with 93 00:04:31,520 --> 00:04:34,280 Speaker 2: a lot of really important information there. And I'll add 94 00:04:34,320 --> 00:04:37,440 Speaker 2: the fact that this still being a recovery effort, divers 95 00:04:38,160 --> 00:04:41,039 Speaker 2: expected back in the water today. We still have six 96 00:04:41,120 --> 00:04:46,360 Speaker 2: people missing and presumed dead, which is something that we 97 00:04:46,400 --> 00:04:48,479 Speaker 2: still need to remember. Even as we talk about the 98 00:04:48,560 --> 00:04:53,559 Speaker 2: logistics behind this massive project and the economic impact of 99 00:04:53,600 --> 00:04:56,560 Speaker 2: this bridge collapse. We talked about the funding mechanism and 100 00:04:56,600 --> 00:04:58,680 Speaker 2: whether the federal government will be able to handle this. 101 00:04:59,120 --> 00:05:02,600 Speaker 2: In a conversation Kaylee had yesterday with Senator Chris van Holland, 102 00:05:02,600 --> 00:05:04,839 Speaker 2: the Democrat from Maryland, have this to say. 103 00:05:05,640 --> 00:05:09,560 Speaker 5: There are some funds in what's called the Emergency Relief Fund. 104 00:05:09,760 --> 00:05:12,919 Speaker 5: This is a fund within the Federal Highway Administration that 105 00:05:13,080 --> 00:05:17,120 Speaker 5: is there specifically for this kind of emergency so once 106 00:05:17,200 --> 00:05:20,520 Speaker 5: the state makes it submission, which I think they're going 107 00:05:20,560 --> 00:05:23,360 Speaker 5: to do very shortly, some of those funds can beginning 108 00:05:23,400 --> 00:05:27,760 Speaker 5: to be drawn down now for the larger, longer term costs. Yes, 109 00:05:28,080 --> 00:05:30,679 Speaker 5: we're going to call upon our colleagues in Congress. 110 00:05:32,200 --> 00:05:35,200 Speaker 2: Chris van Holland speaking yesterday, his colleague in the House, 111 00:05:35,240 --> 00:05:38,920 Speaker 2: Glen Ivy, joins us now. The Democrat from Maryland's fourth 112 00:05:38,960 --> 00:05:41,960 Speaker 2: districts with us live on Bloomberg TV and Radio. 113 00:05:42,040 --> 00:05:43,839 Speaker 3: Congressman, it's great. 114 00:05:43,560 --> 00:05:47,240 Speaker 2: To have you your thoughts today on a funding debate that's 115 00:05:47,320 --> 00:05:49,919 Speaker 2: about to begin. Can the federal government get this done. 116 00:05:51,480 --> 00:05:51,720 Speaker 6: Well? 117 00:05:51,760 --> 00:05:55,160 Speaker 7: First, I just want to extend my condolences to the families. 118 00:05:55,520 --> 00:05:58,719 Speaker 7: You know, the hearts are with them, and you know 119 00:05:58,760 --> 00:06:01,000 Speaker 7: the prayers continue to go out for the six who 120 00:06:01,000 --> 00:06:05,640 Speaker 7: are they're still seeking to recover. With respect to the 121 00:06:05,720 --> 00:06:10,159 Speaker 7: funding issues, Center, van Holland's absolutely right, and he was 122 00:06:10,279 --> 00:06:14,320 Speaker 7: very aggressive and quick to get an outreach going to 123 00:06:14,360 --> 00:06:17,840 Speaker 7: the Department of Transportation for the emergency funds, and we 124 00:06:17,880 --> 00:06:21,200 Speaker 7: appreciate Secretary buddhaj Edge making some. 125 00:06:21,120 --> 00:06:21,920 Speaker 6: Of those available. 126 00:06:21,960 --> 00:06:24,560 Speaker 7: We'll see how much I think in the very near future, 127 00:06:24,880 --> 00:06:27,960 Speaker 7: and certainly President Biden's commitment to get federal funding for 128 00:06:28,080 --> 00:06:29,799 Speaker 7: the rebuilding of the bridge. 129 00:06:30,200 --> 00:06:31,320 Speaker 6: The congressional debate. 130 00:06:31,760 --> 00:06:33,960 Speaker 7: You know, we're in recess right now, so it hasn't 131 00:06:34,000 --> 00:06:37,000 Speaker 7: really started back yet, but I think there's already outreach 132 00:06:37,040 --> 00:06:41,839 Speaker 7: efforts going on. As you know, we've had challenges in 133 00:06:41,880 --> 00:06:46,000 Speaker 7: the House, in particular with respect to just passing basic legislation, 134 00:06:46,720 --> 00:06:49,440 Speaker 7: but we've been able to get some things done when necessary. 135 00:06:49,520 --> 00:06:51,799 Speaker 7: The last week had just pass the build one point 136 00:06:51,800 --> 00:06:55,279 Speaker 7: trillion dollar funding bill for keeping the government open. And 137 00:06:55,320 --> 00:06:57,320 Speaker 7: I'm hoping that this will be the type of tragedy 138 00:06:57,360 --> 00:07:01,359 Speaker 7: that brings people together instead of pushing, you know, people 139 00:07:01,400 --> 00:07:04,200 Speaker 7: into partisan corners. And I'm hoping we can get something 140 00:07:04,240 --> 00:07:05,720 Speaker 7: done here relatively quickly. 141 00:07:06,760 --> 00:07:09,160 Speaker 2: Well, we keep hearing it's different than it was Congressman 142 00:07:09,240 --> 00:07:13,360 Speaker 2: in two thousand and seven following the bridge collapse in Minnesota, 143 00:07:13,520 --> 00:07:15,560 Speaker 2: And I think I understand what people mean by that, 144 00:07:16,760 --> 00:07:18,800 Speaker 2: But do you believe it in this case or can 145 00:07:18,840 --> 00:07:19,960 Speaker 2: people come together on this? 146 00:07:21,840 --> 00:07:22,000 Speaker 7: Well? 147 00:07:22,040 --> 00:07:22,440 Speaker 6: I hope so. 148 00:07:22,600 --> 00:07:25,240 Speaker 7: I mean I think, you know, there was some instances 149 00:07:25,280 --> 00:07:29,440 Speaker 7: in the past where we've had politicians who've you know, 150 00:07:29,680 --> 00:07:33,040 Speaker 7: made political stands on these kinds of issues. But as 151 00:07:33,080 --> 00:07:35,560 Speaker 7: my mother used to say, what goes around, comes around, 152 00:07:35,600 --> 00:07:37,720 Speaker 7: and I remember one or two of them having to 153 00:07:37,760 --> 00:07:39,840 Speaker 7: come back hat in hand when they were you know, 154 00:07:39,960 --> 00:07:43,000 Speaker 7: disasters in their states and they needed help, and President 155 00:07:43,040 --> 00:07:45,800 Speaker 7: Biden stepped up to help them, even though they were 156 00:07:46,360 --> 00:07:49,640 Speaker 7: Republicans in red states. So I think we can find 157 00:07:49,640 --> 00:07:52,800 Speaker 7: a way to do it. And you know, certainly there's 158 00:07:53,200 --> 00:07:56,320 Speaker 7: an economic need that's beneficial to the entire country. 159 00:07:56,360 --> 00:07:59,600 Speaker 6: I mean, you're talking fifteen million dollars a day, fifteen 160 00:07:59,640 --> 00:08:00,720 Speaker 6: thousand and jobs. 161 00:08:01,320 --> 00:08:03,840 Speaker 7: This is the port that had been I think a 162 00:08:03,920 --> 00:08:06,960 Speaker 7: quarter of coal exports for the country had been going 163 00:08:07,000 --> 00:08:09,800 Speaker 7: in and going out of this port. So I think 164 00:08:09,880 --> 00:08:12,800 Speaker 7: it's important for us, you know, regionally and nationally to 165 00:08:12,840 --> 00:08:15,720 Speaker 7: get this thing done well. 166 00:08:15,760 --> 00:08:19,200 Speaker 2: So Congressman, what does this mean in the interim for 167 00:08:19,240 --> 00:08:21,960 Speaker 2: your state of Maryland, for your district? Even if this 168 00:08:22,040 --> 00:08:24,800 Speaker 2: money was approved tonight, we are told this is not 169 00:08:24,880 --> 00:08:28,640 Speaker 2: a month's but years long project you just talked about. 170 00:08:28,680 --> 00:08:32,000 Speaker 2: We're the potential six week outage for coal. At least 171 00:08:32,040 --> 00:08:35,200 Speaker 2: we understand the number of autos that come through the 172 00:08:35,240 --> 00:08:39,679 Speaker 2: Baltimore Harbor. The port could be redistributed to a lot 173 00:08:39,720 --> 00:08:42,679 Speaker 2: of places. So I know there's a long term concern 174 00:08:42,760 --> 00:08:45,280 Speaker 2: about permanent displacement. But what do you do if this 175 00:08:45,360 --> 00:08:48,200 Speaker 2: is two or three years the number of jobs that 176 00:08:48,240 --> 00:08:49,040 Speaker 2: are relying on this. 177 00:08:50,360 --> 00:08:52,640 Speaker 6: Yeah, I think that's the question of the hour. 178 00:08:52,800 --> 00:08:55,440 Speaker 7: I mean, I think we've got the short, medium, and 179 00:08:55,520 --> 00:08:59,280 Speaker 7: long term issues that we have to address. In the 180 00:08:59,280 --> 00:09:02,960 Speaker 7: short term, it's clear in the harbor, getting the packages 181 00:09:03,000 --> 00:09:07,160 Speaker 7: and the containers off the ship that's stuck there so 182 00:09:07,200 --> 00:09:10,880 Speaker 7: we can move that and the ships that are also 183 00:09:11,000 --> 00:09:14,040 Speaker 7: stuck in the harbor can move out. I think we 184 00:09:14,080 --> 00:09:17,240 Speaker 7: want to try and get shipping back up as soon 185 00:09:17,280 --> 00:09:21,080 Speaker 7: as possible. I think in the interim, I think we've 186 00:09:21,080 --> 00:09:23,440 Speaker 7: got to figure out, you know, what it's actually going 187 00:09:23,520 --> 00:09:26,560 Speaker 7: to take to rebuild the bridge. I don't know if 188 00:09:26,559 --> 00:09:28,400 Speaker 7: it's going to be a new bridge it's next to it, 189 00:09:28,520 --> 00:09:29,880 Speaker 7: or if they're going to try and repair the one 190 00:09:29,920 --> 00:09:32,480 Speaker 7: that's there. I don't know if those decisions have been 191 00:09:32,520 --> 00:09:35,959 Speaker 7: made yet. And I think the long term piece, you know, 192 00:09:35,960 --> 00:09:38,120 Speaker 7: it took five years to build that bridge, as I 193 00:09:38,200 --> 00:09:41,040 Speaker 7: understand it, and you know that's almost fifty years ago, 194 00:09:41,320 --> 00:09:44,120 Speaker 7: and you know, there may have been some technological advances, 195 00:09:44,440 --> 00:09:46,040 Speaker 7: but it's still going to take a long time to 196 00:09:46,080 --> 00:09:49,040 Speaker 7: get it done. So I think we have to figure 197 00:09:49,080 --> 00:09:53,960 Speaker 7: out how to work around that. We've got commuters who 198 00:09:54,040 --> 00:09:56,640 Speaker 7: travel in and out of there are work every day 199 00:09:56,679 --> 00:10:00,000 Speaker 7: in and out of Baltimore. We've got people who truckers 200 00:10:00,080 --> 00:10:02,559 Speaker 7: in particular, have been using that route. They're going to 201 00:10:02,600 --> 00:10:06,800 Speaker 7: have to find new ways to move their products. And 202 00:10:06,840 --> 00:10:08,959 Speaker 7: we've got just you know, people traveling up and down 203 00:10:09,000 --> 00:10:10,000 Speaker 7: the Eastern Seaboard. 204 00:10:10,080 --> 00:10:11,760 Speaker 6: So all of that's going to be challenged. 205 00:10:12,160 --> 00:10:14,120 Speaker 7: I think we're gonna have to look at some sort 206 00:10:14,120 --> 00:10:19,640 Speaker 7: of intermediate impact assistance to try and help especially businesses 207 00:10:19,679 --> 00:10:20,920 Speaker 7: and employees. 208 00:10:20,360 --> 00:10:23,360 Speaker 6: Who are getting hammered by this in the near future. 209 00:10:23,400 --> 00:10:25,280 Speaker 7: And you know, we'll see what we can do on 210 00:10:25,320 --> 00:10:26,840 Speaker 7: that front, but I think it's going to be important 211 00:10:26,840 --> 00:10:28,920 Speaker 7: to see what we can do well. 212 00:10:28,920 --> 00:10:30,960 Speaker 2: I wonder if that might be included in an emergency 213 00:10:31,160 --> 00:10:34,760 Speaker 2: relief package. Congressman, is there anything the Delegation can do 214 00:10:34,880 --> 00:10:38,880 Speaker 2: to make permanent the business that exists now in the 215 00:10:38,960 --> 00:10:42,120 Speaker 2: port of Baltimore. If these cars go to Newark or 216 00:10:42,240 --> 00:10:44,559 Speaker 2: New York, or they go down south, what says they 217 00:10:44,559 --> 00:10:45,079 Speaker 2: come back? 218 00:10:46,679 --> 00:10:49,199 Speaker 7: Yeah, I think that's an interesting question. We're gonna have 219 00:10:49,240 --> 00:10:50,880 Speaker 7: to play it by ear a little bit. I think 220 00:10:50,920 --> 00:10:52,880 Speaker 7: in the short term, you know, we might be able 221 00:10:52,920 --> 00:10:55,440 Speaker 7: to provide some sort of subsidies to help these businesses 222 00:10:55,520 --> 00:10:59,000 Speaker 7: deal with an immediate economic impact, but I think that 223 00:11:00,200 --> 00:11:02,120 Speaker 7: a reality of this is that they're going to have 224 00:11:02,160 --> 00:11:05,559 Speaker 7: to try and you know, relocate their businesses to some extent, 225 00:11:05,960 --> 00:11:09,880 Speaker 7: at least for the period while the port's being restored. 226 00:11:10,360 --> 00:11:13,000 Speaker 7: Hopefully we can get that done relatively quickly, though, so 227 00:11:13,080 --> 00:11:13,800 Speaker 7: there won't. 228 00:11:13,520 --> 00:11:16,080 Speaker 6: Have to be any long term changes. I think the 229 00:11:16,120 --> 00:11:17,560 Speaker 6: bridge is a different question. 230 00:11:18,640 --> 00:11:23,280 Speaker 7: Businesses that rely on using that bridge for shipping and transporting. 231 00:11:23,679 --> 00:11:26,320 Speaker 7: That's going to be tougher because that's going to take you, 232 00:11:26,360 --> 00:11:28,520 Speaker 7: I would think at least several years to make that 233 00:11:29,400 --> 00:11:32,360 Speaker 7: a reality. So but the hope is we can get 234 00:11:32,360 --> 00:11:35,760 Speaker 7: the port back up and running quickly enough so businesses 235 00:11:35,760 --> 00:11:39,680 Speaker 7: don't have to take any long term, you know, steps 236 00:11:39,720 --> 00:11:42,719 Speaker 7: to revamp or relocate their businesses. 237 00:11:44,000 --> 00:11:47,600 Speaker 2: We're spending time with Congressman Glenn Ivy of Maryland this 238 00:11:47,720 --> 00:11:50,080 Speaker 2: day after the bridge collapse. I know this is a 239 00:11:50,120 --> 00:11:54,800 Speaker 2: big deal locally, Congressman. We're talking about regional and national 240 00:11:54,880 --> 00:11:58,320 Speaker 2: impact here, but for a lot of folks who live 241 00:11:58,360 --> 00:12:01,480 Speaker 2: in Baltimore, it was not only a landmark, not only. 242 00:12:01,280 --> 00:12:02,240 Speaker 3: A way to get to work. 243 00:12:02,280 --> 00:12:04,320 Speaker 2: It was just part of their day to day life here, 244 00:12:04,360 --> 00:12:07,840 Speaker 2: supporting businesses that we have been describing. There are six 245 00:12:07,880 --> 00:12:11,280 Speaker 2: people still unaccounted for. Can you talk to us about 246 00:12:11,280 --> 00:12:14,680 Speaker 2: the emotional impact that this is having on Maryland? 247 00:12:15,360 --> 00:12:18,720 Speaker 7: Yeah, yeah, I think it's really been devastating. I think 248 00:12:18,800 --> 00:12:22,600 Speaker 7: there's a people have really been per you know, it's 249 00:12:22,640 --> 00:12:25,000 Speaker 7: cut to the heart I think on this, and you know, 250 00:12:25,360 --> 00:12:28,200 Speaker 7: people who feel for the families who are grieving, people 251 00:12:28,200 --> 00:12:32,400 Speaker 7: who feel for the community which relies so extensively on 252 00:12:33,080 --> 00:12:37,080 Speaker 7: the economic impact that's going to be had by this 253 00:12:37,240 --> 00:12:41,120 Speaker 7: because they work in or around the ports. And I think, 254 00:12:41,160 --> 00:12:43,680 Speaker 7: as you mentioned, the sort of the symbolism of the bridge, 255 00:12:43,720 --> 00:12:46,240 Speaker 7: just to see it down in the water like that, 256 00:12:46,400 --> 00:12:50,400 Speaker 7: I think is you know, it's heartbreaking for sure. So 257 00:12:50,920 --> 00:12:53,680 Speaker 7: there's a symbolic piece of this that's going to be challenging. 258 00:12:53,720 --> 00:12:56,360 Speaker 7: I think Governor Moore has done an outstanding job of 259 00:12:57,440 --> 00:13:00,560 Speaker 7: being the healer in charge and taking a strong leadership 260 00:13:00,640 --> 00:13:05,400 Speaker 7: role and trying to help us recover certainly economically but 261 00:13:05,520 --> 00:13:10,000 Speaker 7: also psychologically and emotionally to the loss that we've sustained here. 262 00:13:11,360 --> 00:13:13,440 Speaker 2: You want to see Joe Biden pay a personal visit. 263 00:13:13,520 --> 00:13:16,600 Speaker 2: I know Pete Boodagic has already been there, but would 264 00:13:16,640 --> 00:13:18,320 Speaker 2: a presidential visit be in order. 265 00:13:20,160 --> 00:13:23,000 Speaker 7: You know, we'd love to have the president come, But frankly, 266 00:13:23,080 --> 00:13:25,960 Speaker 7: I mean, the most important piece of this so far, 267 00:13:26,240 --> 00:13:30,479 Speaker 7: everything that's happened since the bridge collapsed, was the President's 268 00:13:30,520 --> 00:13:33,720 Speaker 7: commitment to make sure that we get the bridge back 269 00:13:33,800 --> 00:13:35,599 Speaker 7: up and the Fed's going to take the lead and 270 00:13:36,200 --> 00:13:39,040 Speaker 7: restoring it and making sure that the funding is taken 271 00:13:39,080 --> 00:13:41,040 Speaker 7: care of. The Other thing you said that I liked 272 00:13:41,280 --> 00:13:43,880 Speaker 7: was we're not going to wait for, you know, litigation 273 00:13:44,160 --> 00:13:47,000 Speaker 7: to sort all of this stuff out. You know, if 274 00:13:47,000 --> 00:13:50,120 Speaker 7: there's restitution down the road, that's great, but we want 275 00:13:50,160 --> 00:13:52,520 Speaker 7: to take the lead and getting the bridge up immediately 276 00:13:53,040 --> 00:13:55,120 Speaker 7: and not have to wait for the courts to work 277 00:13:56,240 --> 00:13:58,880 Speaker 7: work out who may or may not be liable. And 278 00:13:58,960 --> 00:14:02,400 Speaker 7: I really appreciate at the President's position on that and 279 00:14:02,520 --> 00:14:05,920 Speaker 7: also has message to the people of the community. I thought, 280 00:14:06,960 --> 00:14:10,600 Speaker 7: I really appreciated what he's done and since already, and 281 00:14:11,200 --> 00:14:12,839 Speaker 7: you know, we look forward to working with him to 282 00:14:12,880 --> 00:14:15,400 Speaker 7: make sure that Congress can get its piece of this 283 00:14:15,559 --> 00:14:16,240 Speaker 7: done as well. 284 00:14:17,400 --> 00:14:19,960 Speaker 3: Glad you could be with us this day after the collapse. 285 00:14:20,040 --> 00:14:23,520 Speaker 2: Congressman, Thank you Glenn Ivy, Democrat from Maryland, with us 286 00:14:23,640 --> 00:14:26,600 Speaker 2: on Balance of Power. As we carry on with our panel, next, 287 00:14:27,040 --> 00:14:29,400 Speaker 2: Rick Davis and Jeanie Shanzano are on the way on 288 00:14:29,480 --> 00:14:32,280 Speaker 2: the fastest show in politics, This is Bloomberg. 289 00:14:35,520 --> 00:14:38,800 Speaker 1: You're listening to the Bloomberg Balance of Power podcast ken 290 00:14:39,000 --> 00:14:42,320 Speaker 1: just live weekdays at noon Eastern on Applecarplay and enron 291 00:14:42,360 --> 00:14:45,040 Speaker 1: Oto with the Bloomberg Business app. You can also listen 292 00:14:45,160 --> 00:14:48,280 Speaker 1: live on Amazon Alexa from our flagship New York station, 293 00:14:48,680 --> 00:14:52,720 Speaker 1: Just Say Alexa Play Bloomberg eleven thirty. 294 00:14:53,720 --> 00:14:56,200 Speaker 2: It's a similar panel to spend some time on this 295 00:14:56,320 --> 00:15:00,680 Speaker 2: Wednesday with Rick Davis and Jeanie Shanzano Bloomberg Politics contributors. 296 00:15:01,280 --> 00:15:04,120 Speaker 2: With this debate underway, now, you've already got Genie Pete 297 00:15:04,120 --> 00:15:08,000 Speaker 2: booda judge out on TV today making the case for 298 00:15:08,160 --> 00:15:11,480 Speaker 2: federal funding. This White House knows that it probably won't 299 00:15:11,480 --> 00:15:12,320 Speaker 2: go the way it did in. 300 00:15:12,280 --> 00:15:13,200 Speaker 3: Two thousand and seven. 301 00:15:13,240 --> 00:15:15,760 Speaker 2: We keep hearing about this the Bridge of Minneapolis, followed 302 00:15:15,800 --> 00:15:19,320 Speaker 2: quickly by a unanimous approval of funding. 303 00:15:19,800 --> 00:15:21,960 Speaker 3: We're told it's different. Now do you believe that? 304 00:15:23,400 --> 00:15:23,640 Speaker 1: Yeah? 305 00:15:23,920 --> 00:15:26,240 Speaker 8: I mean, I hope not, but all signs are that 306 00:15:26,320 --> 00:15:29,960 Speaker 8: is it is different. But I applaud the President, obviously, 307 00:15:30,040 --> 00:15:32,960 Speaker 8: the Governor of Maryland who Killey was just talking about, 308 00:15:33,000 --> 00:15:35,680 Speaker 8: and of course Pete Boudha Judge so for getting out 309 00:15:35,720 --> 00:15:38,360 Speaker 8: there so quickly, and the President for making the case 310 00:15:38,400 --> 00:15:41,760 Speaker 8: that the United States the Congress needs to move quickly 311 00:15:41,840 --> 00:15:46,000 Speaker 8: to rebuild this really important bridge and waterway, which obviously 312 00:15:46,120 --> 00:15:49,720 Speaker 8: is critical to shipping in our nation's capital and on 313 00:15:49,760 --> 00:15:51,520 Speaker 8: the East Coast and around the world. 314 00:15:52,920 --> 00:15:57,320 Speaker 2: What's going to happen, Rick Davis, when Joe Biden drops 315 00:15:57,320 --> 00:16:00,720 Speaker 2: a supplemental emergency funding request for this bridge. He's already 316 00:16:00,720 --> 00:16:03,000 Speaker 2: got one hanging out there for Ukraine, Israel in Taiwan 317 00:16:03,080 --> 00:16:06,920 Speaker 2: that has been very controversial on Capitol Hill. Will it 318 00:16:06,920 --> 00:16:08,880 Speaker 2: feel different when it's put on paper? 319 00:16:10,840 --> 00:16:11,720 Speaker 1: Will it feel different? 320 00:16:12,080 --> 00:16:13,280 Speaker 6: Yeah, it'll feel. 321 00:16:14,520 --> 00:16:17,560 Speaker 9: Heavier and more likely to sink to the bottom of 322 00:16:17,600 --> 00:16:21,000 Speaker 9: the bay, just like this bridge has. Look, I mean, 323 00:16:21,160 --> 00:16:24,480 Speaker 9: there's nothing's going to pass this House of Representatives between 324 00:16:24,480 --> 00:16:29,360 Speaker 9: now and election day other than potentially the Ukraine supplemental it. 325 00:16:30,080 --> 00:16:33,600 Speaker 9: And that's only because the gravity of it all. With 326 00:16:33,680 --> 00:16:36,320 Speaker 9: all due respect to the people of Baltimore, it's going 327 00:16:36,400 --> 00:16:38,240 Speaker 9: to be a while before they even know what the 328 00:16:38,560 --> 00:16:41,400 Speaker 9: costs are going to be to reconstruct this bridge, and 329 00:16:41,760 --> 00:16:44,800 Speaker 9: I think, frankly, Joe Biden would be much better off 330 00:16:44,920 --> 00:16:47,480 Speaker 9: making this. A part of why he needs to be 331 00:16:47,560 --> 00:16:51,480 Speaker 9: re elected is because he's got a track record on infrastructure, 332 00:16:51,920 --> 00:16:55,000 Speaker 9: He's been successful in getting a trillion dollars dedicated to 333 00:16:55,160 --> 00:16:58,240 Speaker 9: US infrastructure, and that he can get this job done 334 00:16:58,320 --> 00:17:01,720 Speaker 9: for the people of Baltimore if he's real. And so, 335 00:17:02,600 --> 00:17:05,399 Speaker 9: I can't imagine a scenario where you're going to see 336 00:17:05,400 --> 00:17:09,560 Speaker 9: between now and November of this year a substantial funding 337 00:17:09,600 --> 00:17:14,639 Speaker 9: package of billions of dollars go through for this specific project. 338 00:17:15,640 --> 00:17:18,160 Speaker 2: Well, that's a reality check, Jeanie. Does this bridge become 339 00:17:18,200 --> 00:17:20,399 Speaker 2: a campaign issue? 340 00:17:20,720 --> 00:17:23,520 Speaker 8: Yeah? I think it is going to be a campaign issue. 341 00:17:23,560 --> 00:17:26,040 Speaker 8: You know, it is Republicans who have been talking about 342 00:17:26,080 --> 00:17:28,840 Speaker 8: the fact that they don't want to invest abroad, they 343 00:17:28,880 --> 00:17:32,200 Speaker 8: want to make America great, they want to invest at home. Well, 344 00:17:32,280 --> 00:17:35,959 Speaker 8: here's your opportunity, and Joe Biden will say that, and 345 00:17:36,000 --> 00:17:38,400 Speaker 8: you know, there is a scenario in which we get 346 00:17:38,400 --> 00:17:41,080 Speaker 8: a vote on this. Although I agree with Rick it 347 00:17:41,480 --> 00:17:44,080 Speaker 8: may not come to pass. But how about if the 348 00:17:44,160 --> 00:17:47,159 Speaker 8: Democrats do a deal with Mike Johnson to keep his 349 00:17:47,240 --> 00:17:51,320 Speaker 8: seat in return for votes on these supplementals, It would 350 00:17:51,359 --> 00:17:55,000 Speaker 8: be really important to see which Republicans are going to 351 00:17:55,080 --> 00:18:00,760 Speaker 8: vote against fixing this critically important bill, particular literally, given 352 00:18:00,920 --> 00:18:04,840 Speaker 8: their mantra has been help the United States spend money 353 00:18:04,840 --> 00:18:06,760 Speaker 8: at home. Well, here's a chance to do it. 354 00:18:08,320 --> 00:18:10,040 Speaker 2: Here's a chance to do it. But it just doesn't 355 00:18:10,080 --> 00:18:12,520 Speaker 2: always come that easily. Rick, I know you are more 356 00:18:12,560 --> 00:18:17,040 Speaker 2: optimistic about Ukraine, and i'd like to ask you about that. 357 00:18:17,119 --> 00:18:19,600 Speaker 2: With the idea of this no interest loan that a 358 00:18:19,600 --> 00:18:21,480 Speaker 2: lot of people scoffed at a couple of weeks ago 359 00:18:21,480 --> 00:18:24,440 Speaker 2: when Lindsey Graham brought it forth. Donald Trump has mentioned it, 360 00:18:24,720 --> 00:18:27,080 Speaker 2: but I keep hearing about it. Is there going to 361 00:18:27,119 --> 00:18:30,480 Speaker 2: be legislative language at some point that reflects it. 362 00:18:32,119 --> 00:18:34,719 Speaker 9: Well, there's only one person more important than the Speaker 363 00:18:34,760 --> 00:18:36,680 Speaker 9: of the House for determining what goes in this bill, 364 00:18:36,720 --> 00:18:40,240 Speaker 9: and that's Donald Trump. And he's already made the view 365 00:18:40,359 --> 00:18:43,800 Speaker 9: that maybe it ought to be alone. And so that's 366 00:18:43,840 --> 00:18:45,560 Speaker 9: one of the reasons why you're hearing so much of it. 367 00:18:45,600 --> 00:18:48,719 Speaker 9: I mean, he is the mouthpiece of the Republican Party, 368 00:18:49,119 --> 00:18:53,760 Speaker 9: the Congressional Republican Party, the gubernatorial Republican Party, you name it. 369 00:18:53,840 --> 00:18:56,840 Speaker 9: So you're going to hear that more and more because 370 00:18:57,240 --> 00:18:59,359 Speaker 9: Donald Trump wants that to be the talking point. That's 371 00:18:59,400 --> 00:19:01,359 Speaker 9: why lindsays making a point of doing it. 372 00:19:01,600 --> 00:19:02,320 Speaker 3: He went to. 373 00:19:03,920 --> 00:19:08,280 Speaker 9: Keev recently and told them that he would support funding 374 00:19:08,280 --> 00:19:10,359 Speaker 9: for them if it came in form of alone. My 375 00:19:10,440 --> 00:19:12,879 Speaker 9: guess is, the folks fight in the war on the 376 00:19:12,880 --> 00:19:15,480 Speaker 9: front line don't care if it's a loan or cash 377 00:19:15,520 --> 00:19:17,480 Speaker 9: on hand. They don't care how they get it. They 378 00:19:17,520 --> 00:19:19,840 Speaker 9: just want it because they need the equipment to be 379 00:19:19,880 --> 00:19:23,600 Speaker 9: able to fight Russians. And so my guess is it'll 380 00:19:23,600 --> 00:19:26,800 Speaker 9: be part of the conversation. But that means that we're 381 00:19:26,800 --> 00:19:29,560 Speaker 9: making progress by actually having a vote in the House, 382 00:19:30,000 --> 00:19:32,760 Speaker 9: and all that could get ironed out in a conference 383 00:19:32,800 --> 00:19:35,840 Speaker 9: with the Senate because obviously the Senate bill wouldn't have 384 00:19:36,080 --> 00:19:37,359 Speaker 9: that loan provision in it. 385 00:19:38,480 --> 00:19:40,320 Speaker 2: We'll have a chance to talk more about the campaign 386 00:19:40,480 --> 00:19:42,439 Speaker 2: next hour, Genie. But Joe Biden's got a lot of 387 00:19:42,440 --> 00:19:45,040 Speaker 2: water to carry right now. We're talking about funding a bridge. 388 00:19:45,600 --> 00:19:48,960 Speaker 2: He's trying to make the case for Ukraine. Last evening 389 00:19:49,000 --> 00:19:51,960 Speaker 2: made quite a bit of news talking about abortion in 390 00:19:52,040 --> 00:19:54,840 Speaker 2: North Carolina. He's got to deal with the economy, dealing 391 00:19:54,880 --> 00:19:58,719 Speaker 2: with inflation at some point, do all of these messages 392 00:19:59,440 --> 00:20:00,680 Speaker 2: just drown each other out. 393 00:20:02,000 --> 00:20:04,040 Speaker 8: No, I don't think so, you know, I think the 394 00:20:04,080 --> 00:20:07,240 Speaker 8: President can make all of these important statements on the 395 00:20:07,280 --> 00:20:11,120 Speaker 8: campaign trail. Last night was critically important in North Carolina, 396 00:20:11,200 --> 00:20:14,679 Speaker 8: the first real joint appearance between Harris and Biden in 397 00:20:14,720 --> 00:20:17,399 Speaker 8: a long time on the campaign trail, even though it 398 00:20:17,440 --> 00:20:20,159 Speaker 8: was a White House event technically, And it just shows 399 00:20:20,200 --> 00:20:23,320 Speaker 8: you how much import they're putting into this issue of healthcare, 400 00:20:23,720 --> 00:20:27,479 Speaker 8: particularly reproductive rights, which is so much on the minds 401 00:20:27,480 --> 00:20:30,120 Speaker 8: of so many of us given what's happening around the country. 402 00:20:30,560 --> 00:20:33,359 Speaker 8: And of course they see North Carolina as a state 403 00:20:33,359 --> 00:20:36,639 Speaker 8: where they can go on the offensive as opposed to 404 00:20:36,640 --> 00:20:40,080 Speaker 8: the defense they're playing in so many of these battleground states. 405 00:20:40,440 --> 00:20:44,400 Speaker 8: So North Carolina critically important, as is this issue of 406 00:20:44,680 --> 00:20:48,480 Speaker 8: health care for women and people across the country and 407 00:20:48,560 --> 00:20:52,520 Speaker 8: our ability as Americans to make our choices about what 408 00:20:52,560 --> 00:20:55,800 Speaker 8: we do with our bodies, ourselves and with our doctors 409 00:20:56,119 --> 00:20:58,800 Speaker 8: and not have the heavy hand of the state involved 410 00:20:58,800 --> 00:21:01,960 Speaker 8: in that. And of course you are seeing Donald Trump 411 00:21:02,000 --> 00:21:06,320 Speaker 8: grapple with this as he thinks about potentially finally saying okay, 412 00:21:06,359 --> 00:21:09,679 Speaker 8: we get fifteen or sixteen weeks on abortion, So you know, 413 00:21:09,800 --> 00:21:12,000 Speaker 8: he knows that the writing is on the wall for 414 00:21:12,080 --> 00:21:15,480 Speaker 8: this reproductive issue. It is not a winning campaign strategy 415 00:21:15,720 --> 00:21:19,040 Speaker 8: for Republicans, as we saw in Alabama with this special election. 416 00:21:20,280 --> 00:21:22,280 Speaker 2: I look forward to talking with you both about that 417 00:21:22,400 --> 00:21:27,360 Speaker 2: because it is important. Although to see the nation obsess 418 00:21:27,520 --> 00:21:30,960 Speaker 2: over a state rep in Alabama is pretty remarkable and 419 00:21:31,000 --> 00:21:34,119 Speaker 2: tells us a lot about where we are. What's Donald 420 00:21:34,160 --> 00:21:37,520 Speaker 2: Trump's message going to be on Ukraine if not the 421 00:21:37,520 --> 00:21:40,520 Speaker 2: same one we've been hearing Rick, that I can solve 422 00:21:40,560 --> 00:21:42,879 Speaker 2: this in the first twenty four hours if I'm re elected. 423 00:21:44,320 --> 00:21:46,800 Speaker 9: Oh, I don't think he ever gets into any more detail, 424 00:21:46,880 --> 00:21:49,600 Speaker 9: because there is no more detail than that, Right, it's 425 00:21:49,680 --> 00:21:52,640 Speaker 9: just the power of his personalities somehow going to part 426 00:21:52,680 --> 00:21:56,160 Speaker 9: the season and settle the conflict that's now been going 427 00:21:56,160 --> 00:21:59,520 Speaker 9: on into his third year. And some would say since 428 00:21:59,520 --> 00:22:04,119 Speaker 9: two thousand fourteen. It's not just it's just irrational that 429 00:22:04,200 --> 00:22:09,040 Speaker 9: anybody can snap their fingers and repair that bridge. But look, 430 00:22:09,240 --> 00:22:12,679 Speaker 9: he's not going to back off of that consideration. He 431 00:22:12,760 --> 00:22:16,159 Speaker 9: will be even handed because he loves Putin and so 432 00:22:16,440 --> 00:22:18,760 Speaker 9: whatever is good for Putin's good for Donald Trump. And 433 00:22:18,800 --> 00:22:23,000 Speaker 9: so I think we've already heard from Zelenski that he 434 00:22:23,040 --> 00:22:25,320 Speaker 9: would be very nervous about any kind of deal that 435 00:22:25,680 --> 00:22:28,280 Speaker 9: Donald Trump would do because it would likely leave the 436 00:22:28,359 --> 00:22:32,040 Speaker 9: Russians in control of large Swasa territory in Ukraine, which 437 00:22:32,200 --> 00:22:34,840 Speaker 9: the Ukraine people would find completely unacceptable. 438 00:22:36,320 --> 00:22:39,920 Speaker 2: Rick Davis and Genie Shanzeno are Signature Panel back together today. 439 00:22:43,600 --> 00:22:47,120 Speaker 1: You're listening to the Bloomberg Balance of Power podcast. Catch 440 00:22:47,200 --> 00:22:50,119 Speaker 1: Just Live weekdays at noon Eastern on Appo, CarPlay and 441 00:22:50,119 --> 00:22:52,840 Speaker 1: then roud Otto with the Bloomberg Business app. Listen on 442 00:22:52,920 --> 00:22:56,119 Speaker 1: demand wherever you get your podcasts, or watch us live 443 00:22:56,200 --> 00:22:58,200 Speaker 1: on YouTube. 444 00:22:59,480 --> 00:23:01,640 Speaker 2: The number of vessels sailing through the Southern Red Sea 445 00:23:01,680 --> 00:23:04,280 Speaker 2: is down still seventy percent compared with the start of December. 446 00:23:04,320 --> 00:23:09,679 Speaker 2: Container shipping has dropped ninety percent. Gas tankers have also 447 00:23:09,880 --> 00:23:12,720 Speaker 2: all but ceased transit. Peter, it's great to see you. 448 00:23:12,760 --> 00:23:15,439 Speaker 2: I really appreciate your coming in. What an adventure you 449 00:23:15,480 --> 00:23:18,840 Speaker 2: had to see all of this up close. These numbers 450 00:23:18,880 --> 00:23:21,199 Speaker 2: are stark that would suggest that we haven't made a 451 00:23:21,280 --> 00:23:22,320 Speaker 2: dent in this problem. 452 00:23:22,680 --> 00:23:25,240 Speaker 10: You know, the Huthis have a lot of material which 453 00:23:25,280 --> 00:23:29,800 Speaker 10: the US says is supplied by Iran. They have missiles 454 00:23:29,840 --> 00:23:33,000 Speaker 10: which continue to come in on these small boats across 455 00:23:33,040 --> 00:23:37,800 Speaker 10: the Red Sea, across routes supplied by land, and so 456 00:23:37,840 --> 00:23:39,840 Speaker 10: they're able to keep going for quite some time. 457 00:23:40,600 --> 00:23:43,399 Speaker 2: It's kind of amazing that we haven't, based on some 458 00:23:43,480 --> 00:23:46,359 Speaker 2: of the reporting we've heard from the Pentagon, made a 459 00:23:46,359 --> 00:23:47,080 Speaker 2: bigger difference. 460 00:23:47,119 --> 00:23:49,160 Speaker 3: We've expended quite a bit of. 461 00:23:48,760 --> 00:23:52,879 Speaker 2: Firepower going after targets, in some cases mobile targets. Preemptive 462 00:23:52,880 --> 00:23:57,040 Speaker 2: strikes were told in Yemen. Have we at least slowed 463 00:23:57,080 --> 00:23:57,760 Speaker 2: down the attack? 464 00:23:58,040 --> 00:24:01,159 Speaker 10: So Pentagon officials do say that they've seen the pace 465 00:24:01,240 --> 00:24:04,280 Speaker 10: of the attacks slow, and they've also seen a shift 466 00:24:04,359 --> 00:24:06,640 Speaker 10: in the kind of tactics that the houthis are using. 467 00:24:06,680 --> 00:24:10,520 Speaker 10: So for example, early on they were flying drones high 468 00:24:10,640 --> 00:24:13,760 Speaker 10: up than using them for surveillance and reconnaissance. Now they're 469 00:24:13,800 --> 00:24:17,600 Speaker 10: flying drones straight at targets in the Red Sea on 470 00:24:17,880 --> 00:24:20,919 Speaker 10: one way missions to disrupt and the Pentagon sees that 471 00:24:21,000 --> 00:24:23,760 Speaker 10: kind of adaptation as a sign that maybe they're running 472 00:24:23,840 --> 00:24:25,400 Speaker 10: low on some of the missile stocks. 473 00:24:25,840 --> 00:24:29,239 Speaker 2: They're still just as aggressive in posture, though, what are 474 00:24:29,280 --> 00:24:32,160 Speaker 2: they getting at, by the way, or what's the aim 475 00:24:32,240 --> 00:24:35,600 Speaker 2: is it the sinkership? Is it to get us out 476 00:24:35,640 --> 00:24:37,960 Speaker 2: of the region. Obviously, that's not going to happen. 477 00:24:38,040 --> 00:24:40,960 Speaker 10: So the houthies say that their aim is to act 478 00:24:41,040 --> 00:24:44,160 Speaker 10: as the voice of the people of Gaza, and they 479 00:24:44,200 --> 00:24:47,480 Speaker 10: say that their attacks will stop once the war between 480 00:24:47,560 --> 00:24:51,560 Speaker 10: Israel and Hamas stops. The truth is, I think though, 481 00:24:51,760 --> 00:24:54,359 Speaker 10: that they have a lot to gain politically from this. 482 00:24:54,480 --> 00:24:57,600 Speaker 10: If you look back to before the October seventh attacks, 483 00:24:57,600 --> 00:25:02,040 Speaker 10: there were anti hoathy protests and and that the parts 484 00:25:02,040 --> 00:25:05,240 Speaker 10: of the country they can control were not being especially 485 00:25:05,240 --> 00:25:09,520 Speaker 10: well run, certainly not doing well economically. But these you know, 486 00:25:09,560 --> 00:25:11,840 Speaker 10: October seventh kind of gave them a cause. It gave 487 00:25:11,880 --> 00:25:14,400 Speaker 10: them a chance to step up and say they were 488 00:25:14,400 --> 00:25:16,239 Speaker 10: the voice of the Arab street. And that's worked out 489 00:25:16,240 --> 00:25:16,600 Speaker 10: pretty well. 490 00:25:16,760 --> 00:25:18,000 Speaker 3: This is a big pr campaign. 491 00:25:18,000 --> 00:25:19,960 Speaker 2: In the end, they don't care about sinking a ship 492 00:25:20,000 --> 00:25:21,760 Speaker 2: just as long as they're in the headlines. 493 00:25:21,960 --> 00:25:24,119 Speaker 10: Well if they exactly if they can get headlines by 494 00:25:24,480 --> 00:25:28,080 Speaker 10: sinking shit, sure and score some points against the US two, 495 00:25:28,440 --> 00:25:29,520 Speaker 10: all for the good for them. 496 00:25:29,760 --> 00:25:32,920 Speaker 2: How has our strategy evolved? If at all you were 497 00:25:32,920 --> 00:25:36,760 Speaker 2: on board an aircraft carrier and so you're seeing a 498 00:25:36,840 --> 00:25:41,199 Speaker 2: number of different platforms. They can shoot cruise missiles from ships, 499 00:25:41,200 --> 00:25:45,040 Speaker 2: from destroyers. They can obviously launch fighter jets like you 500 00:25:45,119 --> 00:25:48,040 Speaker 2: saw with air to ground attacks. Does it remain all 501 00:25:48,040 --> 00:25:50,840 Speaker 2: of the above, because the criticism has been, you know, 502 00:25:50,920 --> 00:25:55,760 Speaker 2: we're lobbing million dollar missiles at these very cheap drones 503 00:25:55,840 --> 00:25:58,520 Speaker 2: that at some point is going to be a problem 504 00:25:58,600 --> 00:25:59,119 Speaker 2: for the Navy. 505 00:25:59,480 --> 00:26:02,920 Speaker 10: Is very expensive. The price tag goes up every day. 506 00:26:03,040 --> 00:26:06,440 Speaker 10: I did ask on board the ship about whether cost 507 00:26:06,520 --> 00:26:09,040 Speaker 10: is ever a consideration, and they said no, They're focused 508 00:26:09,040 --> 00:26:12,480 Speaker 10: on mission. Until Washington tells them to spend less money 509 00:26:12,560 --> 00:26:15,119 Speaker 10: by using cheaper systems, They're going to focus on what 510 00:26:15,160 --> 00:26:18,480 Speaker 10: accomplishes the mission best. And you know, US officials say 511 00:26:18,520 --> 00:26:21,560 Speaker 10: that freedom of navigation, freedom of commerce is a core 512 00:26:21,720 --> 00:26:24,479 Speaker 10: US interest and they're going to keep fighting to defend 513 00:26:24,520 --> 00:26:26,639 Speaker 10: that even though the price tag is pretty high. 514 00:26:26,720 --> 00:26:30,800 Speaker 2: Does that battle group stay in the region until the 515 00:26:30,920 --> 00:26:36,720 Speaker 2: Houthi problem is solved, until the Gaza problem is solved. 516 00:26:36,480 --> 00:26:36,879 Speaker 3: Or both. 517 00:26:37,400 --> 00:26:38,600 Speaker 10: I think it's all of the ABUVE. 518 00:26:38,680 --> 00:26:41,520 Speaker 3: The first went there because of October seventh, right. 519 00:26:41,520 --> 00:26:41,960 Speaker 6: That's right. 520 00:26:42,400 --> 00:26:45,560 Speaker 10: They I mean they they left Virginia thinking that they 521 00:26:45,560 --> 00:26:48,080 Speaker 10: were going to do a bunch of Mediterranean port goals, 522 00:26:48,119 --> 00:26:51,520 Speaker 10: which has not worked out the way that they the 523 00:26:51,560 --> 00:26:53,320 Speaker 10: way that they hoped and they're going to need to 524 00:26:53,320 --> 00:26:56,240 Speaker 10: stay there until the huthis either run out of missiles, 525 00:26:56,760 --> 00:26:58,720 Speaker 10: change their mind about what they want to do, or 526 00:26:58,760 --> 00:27:01,000 Speaker 10: there's peace in the Middle East. And anyone who has 527 00:27:01,040 --> 00:27:02,800 Speaker 10: watched the region for a long time, those they could 528 00:27:02,800 --> 00:27:03,760 Speaker 10: be waiting for a while. 529 00:27:05,000 --> 00:27:07,480 Speaker 2: Having spent a minute on an aircraft carrier, it's a 530 00:27:07,640 --> 00:27:11,080 Speaker 2: remarkable experience to be in this floating city. Right We've 531 00:27:11,080 --> 00:27:13,680 Speaker 2: got five thousand people living on that ship, Peter. 532 00:27:13,800 --> 00:27:14,639 Speaker 3: What was morale like? 533 00:27:15,560 --> 00:27:18,560 Speaker 10: I would say morale was pretty good. People are tired, 534 00:27:18,720 --> 00:27:21,240 Speaker 10: a lot of people working twelve hour shifts day in, 535 00:27:21,440 --> 00:27:26,440 Speaker 10: day out. They have a leadership team on board which 536 00:27:26,480 --> 00:27:30,960 Speaker 10: is very dedicated to improving morale, stressing the mission that 537 00:27:30,960 --> 00:27:33,960 Speaker 10: they're going after, stressing why it's important, why it matters. 538 00:27:34,920 --> 00:27:36,560 Speaker 10: So it seems to be holding up for now, but 539 00:27:36,600 --> 00:27:39,040 Speaker 10: I do think that they know it can't be held. 540 00:27:38,920 --> 00:27:40,960 Speaker 3: Up forever at this pace, and they have no sense 541 00:27:40,960 --> 00:27:41,880 Speaker 3: of when they're. 542 00:27:43,000 --> 00:27:45,720 Speaker 2: Not just yet the no fail mission as you call 543 00:27:45,760 --> 00:27:48,000 Speaker 2: it in your great reporting, Peter, thank you for coming 544 00:27:48,000 --> 00:27:50,480 Speaker 2: to talk to us, and welcome back home, Peter Martin 545 00:27:50,880 --> 00:27:52,480 Speaker 2: in a great piece that I encourage you to check 546 00:27:52,520 --> 00:27:55,440 Speaker 2: out on the terminal or at Bloomberg dot Com. It's 547 00:27:55,480 --> 00:27:58,440 Speaker 2: not just great reporting, but also loaded with images from 548 00:27:58,520 --> 00:28:01,879 Speaker 2: Peter's visit to the US Eisenhower, which is just a 549 00:28:01,920 --> 00:28:05,000 Speaker 2: remarkable thing to witness. All of this, of course, comes 550 00:28:05,000 --> 00:28:10,400 Speaker 2: down again to shipping. It's not just the conflicts in Gaza, 551 00:28:10,800 --> 00:28:14,080 Speaker 2: it's the flow of shipping. It's trade, and it comes 552 00:28:14,160 --> 00:28:17,880 Speaker 2: down to prices because as they continue to steer around 553 00:28:18,520 --> 00:28:20,520 Speaker 2: the Red Sea, and we've got a lot of them here. 554 00:28:20,520 --> 00:28:23,920 Speaker 2: As I mentioned, container shipping has dropped ninety percent. Gas 555 00:28:23,960 --> 00:28:27,480 Speaker 2: tankers have ceased transit. They've got to go somewhere. It 556 00:28:27,520 --> 00:28:30,359 Speaker 2: adds time and money, and it ends up being inflationary. 557 00:28:30,760 --> 00:28:34,840 Speaker 2: As we've discussed before with Molly Smith, it's just yet 558 00:28:34,880 --> 00:28:38,480 Speaker 2: another problem for the Biden administration when they think about 559 00:28:38,560 --> 00:28:41,840 Speaker 2: unwinding supply chains and something like this happens at a 560 00:28:41,880 --> 00:28:45,640 Speaker 2: bridge collapse in Baltimore, and we can keep talking. 561 00:28:45,360 --> 00:28:46,240 Speaker 3: About this now. 562 00:28:46,840 --> 00:28:49,520 Speaker 2: I mentioned this in part because Molly Smith is in 563 00:28:49,680 --> 00:28:54,320 Speaker 2: Washington typically covering the indicators and the data from New York. 564 00:28:54,400 --> 00:28:56,680 Speaker 2: She's with us here in the Bloomberg DC Bureau and 565 00:28:56,760 --> 00:28:57,680 Speaker 2: it's wonderful to see you. 566 00:28:57,920 --> 00:29:00,280 Speaker 3: Well, what a tree. It's a balance of power on 567 00:29:00,400 --> 00:29:02,840 Speaker 3: the desk. Well, yes, here at the desk, great to 568 00:29:02,880 --> 00:29:03,280 Speaker 3: see you. 569 00:29:03,360 --> 00:29:07,640 Speaker 2: We're talking about inflation with kind of a reference to 570 00:29:07,680 --> 00:29:11,960 Speaker 2: every possible story, whether it's geopolitics, whether it's supply chains, 571 00:29:12,320 --> 00:29:15,800 Speaker 2: whether it's supply and demand, or a FED conversation. And 572 00:29:15,840 --> 00:29:18,400 Speaker 2: you've been helping with some reporting here that people are 573 00:29:18,440 --> 00:29:22,120 Speaker 2: going to read about that. Disinflation is the word of 574 00:29:22,160 --> 00:29:25,680 Speaker 2: the quarter. In retail. They actually so they say they've 575 00:29:25,680 --> 00:29:28,200 Speaker 2: seen some goods prices come down, they're keeping their retail 576 00:29:28,200 --> 00:29:32,040 Speaker 2: prices even so. Fatter margins for retailers bad news for 577 00:29:32,120 --> 00:29:34,040 Speaker 2: Joe Biden because when you go to the store, you 578 00:29:34,040 --> 00:29:34,920 Speaker 2: don't see a difference. 579 00:29:35,080 --> 00:29:38,640 Speaker 11: Well, that's exactly the issue that Biden and many Democrats 580 00:29:38,640 --> 00:29:41,400 Speaker 11: have been arguing really for years now, this concept called 581 00:29:41,480 --> 00:29:46,000 Speaker 11: greedflationed inflation. Yes, well, they actually were arguing at more 582 00:29:46,040 --> 00:29:48,959 Speaker 11: when prices were going up, that companies would then charge 583 00:29:49,240 --> 00:29:52,160 Speaker 11: even more so than needed to offset those rising cost 584 00:29:52,160 --> 00:29:55,440 Speaker 11: pressures and taking advantage of inflation that way. Now it's 585 00:29:55,480 --> 00:29:58,840 Speaker 11: moving in the reverse that even though prices are easing 586 00:29:58,960 --> 00:30:02,320 Speaker 11: for some of these key input costs, they're still keeping 587 00:30:02,480 --> 00:30:06,160 Speaker 11: the prices charged to consumers high, so keeping the margins 588 00:30:06,160 --> 00:30:09,480 Speaker 11: margins elevated in that way. So economists will kind of 589 00:30:09,520 --> 00:30:12,160 Speaker 11: go back and forth as to like whether this argument 590 00:30:12,360 --> 00:30:15,520 Speaker 11: is valid as to whether is this a really main 591 00:30:15,600 --> 00:30:18,920 Speaker 11: driver of the overall inflation we're experiencing. Probably not, But 592 00:30:19,080 --> 00:30:20,720 Speaker 11: is it contributing at the margins? 593 00:30:20,800 --> 00:30:21,480 Speaker 12: Yeah? Maybe so. 594 00:30:21,600 --> 00:30:23,080 Speaker 2: Yeah, it's kind of like what we experience at the 595 00:30:23,120 --> 00:30:25,520 Speaker 2: gas station, right, The prices tend to go up real 596 00:30:25,560 --> 00:30:28,440 Speaker 2: quick and take a long time to come back down. 597 00:30:29,440 --> 00:30:32,200 Speaker 2: The problem is, folks like you who look into the 598 00:30:32,200 --> 00:30:34,720 Speaker 2: future here a little bit and study the data don't 599 00:30:34,760 --> 00:30:38,560 Speaker 2: see that as a continuing trend necessarily. That's why we've 600 00:30:38,560 --> 00:30:40,400 Speaker 2: got interest rates higher for longer. 601 00:30:40,200 --> 00:30:41,280 Speaker 12: Right, exactly, right. 602 00:30:41,320 --> 00:30:44,040 Speaker 11: So if you look at the disinflation that we've seen 603 00:30:44,160 --> 00:30:47,360 Speaker 11: in the last almost two years, it's pretty much entirely 604 00:30:47,440 --> 00:30:50,440 Speaker 11: come from goods, like you know, things that you buy, 605 00:30:50,560 --> 00:30:53,320 Speaker 11: like stuff like furniture, like clothing, things that you can 606 00:30:53,360 --> 00:30:56,760 Speaker 11: actually pick up and touch, like this keyboard, et cetera versus. 607 00:30:56,800 --> 00:30:59,240 Speaker 11: And so it's a good side and one and energy 608 00:30:59,360 --> 00:31:02,719 Speaker 11: on the other. But those two things aren't really falling 609 00:31:02,720 --> 00:31:04,520 Speaker 11: as much anymore the way that they had. 610 00:31:04,400 --> 00:31:06,160 Speaker 12: Been for the last eighteen or so months. 611 00:31:06,160 --> 00:31:09,320 Speaker 11: So that's the concern now looking forward, and FED officials, 612 00:31:09,360 --> 00:31:12,240 Speaker 11: including Chair Powell, have flagged this as well that they're 613 00:31:12,280 --> 00:31:14,680 Speaker 11: wondering how much more room there is to run on 614 00:31:14,800 --> 00:31:16,360 Speaker 11: this goods disinflation story. 615 00:31:16,560 --> 00:31:19,000 Speaker 3: Right, So, you know, you hear a lot about last mile. 616 00:31:19,680 --> 00:31:21,480 Speaker 3: Do you roll your eyes at that? Is that like 617 00:31:21,520 --> 00:31:24,120 Speaker 3: an easy cliche? How come the last mile is so hard? 618 00:31:24,200 --> 00:31:24,280 Speaker 7: No? 619 00:31:24,400 --> 00:31:26,360 Speaker 11: I think that's really valid, And that's what we've been 620 00:31:26,400 --> 00:31:31,440 Speaker 11: talking about, really, this whole disinflationary journey, getting from you know, 621 00:31:31,640 --> 00:31:34,600 Speaker 11: nine percent up in June twenty twenty two down to 622 00:31:34,800 --> 00:31:36,760 Speaker 11: hopefully what will be two percent. 623 00:31:36,440 --> 00:31:37,240 Speaker 12: In the next year. 624 00:31:37,360 --> 00:31:40,240 Speaker 11: But that's it's really hard to cut it in half 625 00:31:40,280 --> 00:31:43,320 Speaker 11: and then in half again. So coming down from you 626 00:31:43,320 --> 00:31:45,760 Speaker 11: know that area and eight to nine percent down to 627 00:31:45,840 --> 00:31:48,400 Speaker 11: four that was what was called the easy part. That 628 00:31:48,560 --> 00:31:50,760 Speaker 11: was what we saw with a lot of the supply 629 00:31:50,880 --> 00:31:53,080 Speaker 11: chains healing, helping out, doing a lot of the work 630 00:31:53,120 --> 00:31:55,800 Speaker 11: for the FED on the energy side as well, with 631 00:31:56,240 --> 00:31:58,840 Speaker 11: those prices coming down. The harder part now is the 632 00:31:58,880 --> 00:32:01,720 Speaker 11: sickier parts of flat like services with all of us 633 00:32:01,720 --> 00:32:04,560 Speaker 11: still wanting to travel and go out. I was just 634 00:32:04,600 --> 00:32:07,400 Speaker 11: at the Miami Open last weekend to support it, watching 635 00:32:07,440 --> 00:32:08,160 Speaker 11: a tennis event. 636 00:32:08,480 --> 00:32:11,400 Speaker 12: Lots of people there spending on entertainment. Yeah, people still 637 00:32:11,440 --> 00:32:12,200 Speaker 12: want to live their lives. 638 00:32:12,280 --> 00:32:13,240 Speaker 3: So what is that part? 639 00:32:13,360 --> 00:32:15,160 Speaker 2: You can't get a table at a restaurant, and at 640 00:32:15,200 --> 00:32:17,680 Speaker 2: least in a place like Washington or New York, you 641 00:32:17,680 --> 00:32:21,520 Speaker 2: know where the elitists experiencing. I guess the benefits of 642 00:32:21,560 --> 00:32:24,680 Speaker 2: this economy that won't seem to quit. But it's not 643 00:32:24,840 --> 00:32:28,600 Speaker 2: just here, Like you said, book a ticket on an airplane? 644 00:32:28,680 --> 00:32:30,880 Speaker 3: Is that still COVID savings? Is it just the fact 645 00:32:30,880 --> 00:32:32,200 Speaker 3: that the job market's doing well? 646 00:32:32,600 --> 00:32:34,040 Speaker 12: I mean, I think it's a bit of both. 647 00:32:34,480 --> 00:32:37,640 Speaker 11: Granted, the COVID savings are certainly waning, you think, so, 648 00:32:37,640 --> 00:32:38,800 Speaker 11: oh yeah, yeah, that's. 649 00:32:38,640 --> 00:32:40,400 Speaker 12: Certainly been a big there. 650 00:32:40,520 --> 00:32:42,240 Speaker 11: I mean, I feel like you can talk to five 651 00:32:42,240 --> 00:32:45,480 Speaker 11: different economists on where where excess savings at and they'll 652 00:32:45,480 --> 00:32:46,480 Speaker 11: give you ten different answers. 653 00:32:46,520 --> 00:32:46,880 Speaker 6: That's true. 654 00:32:46,880 --> 00:32:48,320 Speaker 2: We've heard some ring the bell to say, you know 655 00:32:48,320 --> 00:32:50,120 Speaker 2: what we spent at all, there's none left, and then 656 00:32:50,240 --> 00:32:52,400 Speaker 2: years later you hear that it's still in fact driving 657 00:32:53,240 --> 00:32:55,720 Speaker 2: some behavior. But we've also seen wages go up quite 658 00:32:55,720 --> 00:32:57,440 Speaker 2: a bit too, so I wonder how that plays into it. 659 00:32:57,480 --> 00:33:00,760 Speaker 2: The fact is that this revenge travel thing think is real, 660 00:33:01,000 --> 00:33:02,160 Speaker 2: Whether we have the money to. 661 00:33:02,120 --> 00:33:02,680 Speaker 3: Do it or not. 662 00:33:03,120 --> 00:33:07,719 Speaker 2: People are still i think, responding to that pandemic in 663 00:33:07,760 --> 00:33:10,959 Speaker 2: some ways. When they have the opportunity to do something, 664 00:33:11,040 --> 00:33:11,560 Speaker 2: they take it. 665 00:33:11,840 --> 00:33:14,120 Speaker 11: Yeah, a lot of these plans were you know, that 666 00:33:14,160 --> 00:33:17,040 Speaker 11: we put off during COVID, were longer term things that 667 00:33:17,120 --> 00:33:19,200 Speaker 11: still could be playing out now, like you know, two 668 00:33:19,320 --> 00:33:21,560 Speaker 11: or three years later, you know, like booking a trip 669 00:33:21,760 --> 00:33:24,680 Speaker 11: to go away for a long weekend or longer than that. 670 00:33:24,760 --> 00:33:26,200 Speaker 12: You know, people still catching. 671 00:33:25,960 --> 00:33:29,160 Speaker 11: Up on weddings that didn't happen then, on other kinds 672 00:33:29,160 --> 00:33:32,080 Speaker 11: of you know, big life events, buying homes, so a 673 00:33:32,120 --> 00:33:34,640 Speaker 11: lot of this is still probably playing catch up to 674 00:33:34,680 --> 00:33:37,680 Speaker 11: some degree, and as well that people are moving on. 675 00:33:37,720 --> 00:33:40,000 Speaker 11: I mean this whole concept of like, you know, maybe 676 00:33:40,000 --> 00:33:42,800 Speaker 11: the economy we're not having a hard landing. It seems 677 00:33:42,840 --> 00:33:45,600 Speaker 11: like there's really no sign of a recession. Maybe we're 678 00:33:45,640 --> 00:33:48,000 Speaker 11: not having a soft landing either. It's more this concept 679 00:33:48,000 --> 00:33:51,600 Speaker 11: of a no landing where the economy just reaccelerates and 680 00:33:51,960 --> 00:33:54,280 Speaker 11: moves on. And I think that's a lot of people 681 00:33:54,320 --> 00:33:56,480 Speaker 11: more are conjuring around that idea. 682 00:33:56,520 --> 00:33:59,600 Speaker 2: Now reaccelerates makes me think that second half of the 683 00:33:59,680 --> 00:34:02,000 Speaker 2: year be a different world for the Fed. Then if 684 00:34:02,000 --> 00:34:05,120 Speaker 2: this is what we're looking at, maybe interest rate cuts 685 00:34:05,160 --> 00:34:06,960 Speaker 2: are just further away than anyone believes. 686 00:34:07,400 --> 00:34:10,520 Speaker 11: Probably more that could be one idea. I mean, certainly 687 00:34:10,520 --> 00:34:12,359 Speaker 11: the Fed wants you to believe that they don't want 688 00:34:12,360 --> 00:34:14,719 Speaker 11: the market to get ahead of itself. But there's also 689 00:34:14,719 --> 00:34:18,800 Speaker 11: a big difference between the economy reaccelerating and inflation reaccelerating. 690 00:34:19,000 --> 00:34:21,600 Speaker 11: So it is possible, and this is what the Fed 691 00:34:21,680 --> 00:34:24,360 Speaker 11: is hoping for, that growth can be sustained without a 692 00:34:24,400 --> 00:34:26,720 Speaker 11: pickup in inflation, and a lot of that comes from 693 00:34:26,840 --> 00:34:29,799 Speaker 11: the supply side being back in order to support the 694 00:34:29,800 --> 00:34:31,319 Speaker 11: demand that's obviously still here. 695 00:34:31,400 --> 00:34:32,960 Speaker 2: I know there's a term for it, but Joe Biden's 696 00:34:32,960 --> 00:34:35,719 Speaker 2: made a big deal about the smaller portion sizes. You know, 697 00:34:35,760 --> 00:34:38,439 Speaker 2: you buy a traculation shrinkflation thank you, So I knew 698 00:34:38,440 --> 00:34:41,160 Speaker 2: you would say, got it. He's made that part of 699 00:34:41,200 --> 00:34:43,279 Speaker 2: his stump speech, he talked about it at the State 700 00:34:43,320 --> 00:34:45,640 Speaker 2: of the Union. He had a video on social media 701 00:34:45,680 --> 00:34:48,759 Speaker 2: with a bag of potato chips. Is does that get 702 00:34:48,880 --> 00:34:52,960 Speaker 2: worse as retailers are pressured to follow prices lower. 703 00:34:53,360 --> 00:34:55,320 Speaker 12: I mean, I'm not a retailer, but they don't want that. 704 00:34:55,400 --> 00:34:57,239 Speaker 12: Arguments market no of course not. 705 00:34:57,400 --> 00:34:59,640 Speaker 11: I mean there's also like the idea as well that 706 00:34:59,680 --> 00:35:01,279 Speaker 11: you kind of to see this in housing a little 707 00:35:01,320 --> 00:35:03,600 Speaker 11: bit too, that I think we've seen data that average 708 00:35:03,680 --> 00:35:06,560 Speaker 11: new homes are actually being built with less square footage. 709 00:35:06,920 --> 00:35:10,320 Speaker 12: So yeah, it kind of like can go in multiple ways. 710 00:35:10,040 --> 00:35:13,720 Speaker 2: That drink inflation not gonna be a square footage with shrink, 711 00:35:13,880 --> 00:35:16,440 Speaker 2: which is a whole other problem that retailers are facing. 712 00:35:17,239 --> 00:35:19,600 Speaker 2: I love the jargon. I have to ask you about 713 00:35:19,600 --> 00:35:23,000 Speaker 2: PCE is on Friday. Yes, that's actually a pretty big 714 00:35:23,040 --> 00:35:23,680 Speaker 2: deal for the Fed. 715 00:35:23,920 --> 00:35:26,799 Speaker 12: Yes, so some of us will not have Friday off, 716 00:35:27,560 --> 00:35:29,400 Speaker 12: a lot of them we will be working. Yes, we 717 00:35:29,440 --> 00:35:31,000 Speaker 12: will give you all the news straw. 718 00:35:31,160 --> 00:35:33,920 Speaker 11: Yeah, but you know, hey, when it comes to big 719 00:35:33,960 --> 00:35:35,479 Speaker 11: inflation report, that's kind of our series. 720 00:35:35,560 --> 00:35:37,719 Speaker 2: What are we looking at, what's the what's the expectations, 721 00:35:37,800 --> 00:35:38,799 Speaker 2: you know, off the top of your head. 722 00:35:39,280 --> 00:35:41,560 Speaker 11: Yeah, I mean it's gonna be like it's going to 723 00:35:41,600 --> 00:35:44,160 Speaker 11: be a reading that probably will make the Fed a 724 00:35:44,200 --> 00:35:47,239 Speaker 11: little uncomfortable. But I'm they are obviously well aware of 725 00:35:47,600 --> 00:35:50,200 Speaker 11: a lot of the inputs that go into PCE. We've 726 00:35:50,280 --> 00:35:53,360 Speaker 11: already seen so far, so a lot of economists have 727 00:35:53,440 --> 00:35:55,640 Speaker 11: really already firmed up their forecast and have a good 728 00:35:55,680 --> 00:35:59,279 Speaker 11: idea of what's coming. So we've already seen a lot 729 00:35:59,320 --> 00:36:02,520 Speaker 11: of the other data point to strong price pressures in 730 00:36:02,520 --> 00:36:05,760 Speaker 11: February that will probably still continue. This report is for February, 731 00:36:05,840 --> 00:36:08,440 Speaker 11: which seems like ages ago now, yes, right, but I 732 00:36:08,480 --> 00:36:11,120 Speaker 11: think they will probably be prepared to look through that 733 00:36:11,239 --> 00:36:13,480 Speaker 11: and just you be more prepared for once to come. 734 00:36:13,560 --> 00:36:15,840 Speaker 2: You'll hear about it here of course, on Bloomberg we 735 00:36:15,920 --> 00:36:20,160 Speaker 2: will actually have live special coverage PCA data eight thirty am. 736 00:36:20,200 --> 00:36:22,680 Speaker 2: Wall Street Time again at eleven thirty with remarks from 737 00:36:22,760 --> 00:36:25,919 Speaker 2: j Powell, So join Nathan Hager and Michael McKee here 738 00:36:25,920 --> 00:36:26,239 Speaker 2: for that. 739 00:36:26,239 --> 00:36:28,719 Speaker 3: Big thanks to Molly Smith. Get home safely. It's great 740 00:36:28,719 --> 00:36:32,880 Speaker 3: to see you in Washington. Thanks for listening to the 741 00:36:32,920 --> 00:36:34,400 Speaker 3: Balance of Power podcast. 742 00:36:35,000 --> 00:36:38,120 Speaker 2: Make sure to subscribe if you haven't already, at Apple, Spotify, 743 00:36:38,239 --> 00:36:40,799 Speaker 2: or wherever you get your podcasts, and you can find 744 00:36:40,880 --> 00:36:44,120 Speaker 2: us live every weekday from Washington, DC at noontime Eastern 745 00:36:44,400 --> 00:36:45,800 Speaker 2: at Bloomberg dot com.