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Trump Plays Down Prospects for Iran Talks Amid Red Sea Threat · Balance of Power

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Speaker 2: So I guess we bounced back high. UBS was talking
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Speaker 2: about it this morning. First thing I read in Bloomberg
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Speaker 2: Daybreak on my Bloomberg app. That is actually, for real
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Speaker 2: how I start my day every day. If you want
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Speaker 2: to read in and know what's going on, that's what
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Speaker 2: it's there for dayb Go. UBS's trading desk says the
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Speaker 2: sector may be finding a floor. The big momentum stock unwind. Yeah,
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Speaker 2: we're looking at you. Micron Hedge funds, they say, have
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Speaker 2: cut their long positions and momentum semi stocks by about
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Speaker 2: five percent of gross market value. That is one of
0:58
Speaker 2: the biggest pullback on record, according to the prime brokerage
1:02
Speaker 2: data at UBS. It's left net positioning and semiconductor and
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Speaker 2: software stocks back where we were in April and point
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Speaker 2: didn't things feel good then? So do you jump in
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Speaker 2: and buy? Mic runs up almost one hundred dollars right now,
1:18
Speaker 2: because that's kind of become the poster child for the
1:21
Speaker 2: momentum movement here. Right When you look around, though, not
1:24
Speaker 2: only are the indexes doing well and you've got a
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Speaker 2: NASDAC up almost one and a half percent. It's flying
1:29
Speaker 2: in the face of higher oil prices. And this is
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Speaker 2: where the storyline gets more complicated. The President was just
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Speaker 2: talking to reporters in the Oval Office. You got two
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Speaker 2: and a half percent bump in Brent above ninety one
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Speaker 2: dollars now almost two and a half for WTI eighty
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Speaker 2: five dollars. And yeah, gas is higher two four dollars
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Speaker 2: and two cents on average according to Triple A. When
1:54
Speaker 2: you look at the energy stocks though, my god, I
1:56
Speaker 2: mean even the integrated oils are moving higher here. Refiners
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Speaker 2: keep bumping new all time highs on a daily basis.
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Speaker 2: Because that part of the story is probably not going
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Speaker 2: to change. Remember Ben Hodges was on the late edition
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Speaker 2: of Balance of Power yesterday. Do you see the five
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Speaker 2: o'clock show, retired general Army general who knows what he's
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Speaker 2: talking about here. He's been a very reliable voice considering
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Speaker 2: his dalliances in diplomacy as well, and the General told
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Speaker 2: us he expects this conflict in Iran war whatever you
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Speaker 2: call it, to still be underway when voters go to
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Speaker 2: the polls in November. That'd be a pretty big deal.
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Speaker 2: Where do you think oil prices will be?
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Speaker 3: Then?
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Speaker 2: Golden Sachs had a note out this morning Brent could
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Speaker 2: rally to more than one hundred and twenty dollars a
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Speaker 2: barrel by the fourth quarter if disruptions in the Strait persist,
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Speaker 2: and of course we're adding the potential for disruptions in
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Speaker 2: the Red Sea as the houthies get busy once again.
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Speaker 2: Is everybody going with hooty?
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Speaker 3: Now?
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Speaker 2: I keep hearing Hootie or Hooty and the blowfish playing
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Speaker 2: in Yemen. It's the hoothy rebels. There's an h in there.
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Speaker 2: But I digress. Yeah, the president says, the hooties, right,
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Speaker 2: Is that why they're all doing it? I mentioned he
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Speaker 2: spoke with reporters. So if you're following the beat on this,
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Speaker 2: we're ten straight nights of bombing. That's the most we've
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Speaker 2: seen since the initial phase, the initial two week campaign
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Speaker 2: of strikes. And if you read the tip sheets this morning,
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Speaker 2: the President's got some pretty big decisions to make here.
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Speaker 2: You've either got this ten days cease fire that the
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Speaker 2: mediators were hawking yesterday, or well, the hawks are going
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Speaker 2: to keep hawking and we're going to be in a
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Speaker 2: full on war. Washington Post says Iran's government is likely
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Speaker 2: not to be swayed with more bombing, unlikely to feel
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Speaker 2: significant impact or soften its negotiating position. This is a
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Speaker 2: new intelligent assessment described by current and former US officials,
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Speaker 2: analysts at American spy agencies, also concluding Teyron and Washington
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Speaker 2: are for now stuck an indefinite limbo between peace and war,
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Speaker 2: kind of like what Ben Hodges said, and the market
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Speaker 2: seems to be living with this pretty well at the moment.
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Speaker 2: President says, though we're still knocking him and we have
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Speaker 2: more strikes ahead. He even referred to Pickaxe Mountain. And
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Speaker 2: we'll talk about that with Tyler in a moment. Here's
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Speaker 2: the President from the Oval Office. We are doing very well.
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Speaker 4: We are degrading them at levels that nobody felt was
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Speaker 4: possible being degraded really so seriously, they did slip something
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Speaker 4: through injury, and if we had other operators, you know,
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Speaker 4: would have who not happened.
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Speaker 5: Unfortunately, but because we have the best equipment in the.
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Speaker 2: World when he says they slipped something through. Of course,
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Speaker 2: we saw those ballistic missiles touchdown in Jordan and kill
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Speaker 2: Americans who were serving their country on the base. Tyler
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Speaker 2: Kendall is our Washington correspondent and is back with us
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Speaker 2: here in the room in the bureau on a groundhog day.
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Speaker 2: At least with this story. It does feel like we're
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Speaker 2: churning here right. We're tread and water. He was in
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Speaker 2: the room with the President of Lebanon, which of course
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Speaker 2: has a lot of skin in this game. Has anything
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Speaker 2: changed in his posture when it comes to Iran.
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Speaker 6: We are getting conflicting signals today again because on one hand,
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Speaker 6: Bloomberg News had confirmed that there are Iranian officials in
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Speaker 6: Pakistan for apparently another round of talks with mediators today.
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Speaker 6: But as that reporting came down, we also got confirmation
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Speaker 6: from Kuwait and Bahrain that Iran was hitting US assets
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Speaker 6: in those countries. So we have seen escalation, but also
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Speaker 6: the door still open for diplomacy. But President Trump's posture
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Speaker 6: in this meeting with the Lebanese president seemed to point
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Speaker 6: toward escalation. He said, in part quote, We're not finished
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Speaker 6: at all with Iran. He said that Iran wants to
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Speaker 6: desperately meet, in his words, but that the US has
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Speaker 6: no interest unless Iran wants to meet in a quote
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Speaker 6: meaningful way. He didn't elaborate on what that would look like, though,
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Speaker 6: we've gotten very little indication Iran is willing to let
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Speaker 6: up its leverage when it comes to the strait of
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Speaker 6: her moves. Overnight, hitting another tanker in the street, this
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Speaker 6: time linked to Kuwait. As we really see those flows
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Speaker 6: go down to a trickle if at all.
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Speaker 2: Yeah, apparently nothing got through the straight overnight. I want
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Speaker 2: to ask you about the centrifuges. This is a Wall
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Speaker 2: Street Journal report Israeli intelligence telling the United States that
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Speaker 2: thousands of uranium and Richmond centerfuges were brought by Iran
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Speaker 2: into tunnels deep inside the mountain that we call Pickaxe Mountain.
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Speaker 2: This like four hundred and fifty feet underground. The President
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Speaker 2: was asked about this today and it seems he's got
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Speaker 2: plans to deal with it.
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Speaker 5: Listen, it doesn't mean anything unless they have the material
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Speaker 5: you're about the centrifuges. Yeah, it doesn't mean anything. Let's
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Speaker 5: say of the material they don't have. We follow the
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Speaker 5: material that's where the action is, and we'll be hitting
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Speaker 5: that area very probably pretty soon, and there's not a
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Speaker 5: thing they can do about it. Normally, I wouldn't say that.
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Speaker 5: If I thought they could do something about it, I
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Speaker 5: would never say that. But we'll be hitting that area
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Speaker 5: pretty soon and very heavily.
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Speaker 2: So he kind of said that we're going to be
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Speaker 2: hitting it pretty soon, which would.
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Speaker 6: Be a pointing toward escalation. Interestingly enough, in this reporting,
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Speaker 6: it goes on to say that the US has actually
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Speaker 6: been monitoring activity at Picax Mountain for the last fifteen months,
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Speaker 6: since we saw Operation Midnight Hammer last summer, the twelve
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Speaker 6: state bombing campaign, which has definitely raised questions about the
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Speaker 6: target so far that the Trump administration has gone after.
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Speaker 6: But we know President Trump has been saying that they
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Speaker 6: want to target and degrade any of Iron's ability toward
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Speaker 6: building a nuclear weapon, So it also makes sense that
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Speaker 6: we would see the administration point toward potential strikes here.
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Speaker 6: It just stubtails into this picture that we are looking
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Speaker 6: at likely more escalation ahead. A White House official had
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Speaker 6: told us earlier that for now, we should expect US
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Speaker 6: strikes to continue until President Trump decides that we need
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Speaker 6: a different course of action, or if maybe there's some
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Speaker 6: outside factors that could impact him. Notably, of course, the
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Speaker 6: disruptions we're saying with supply amid this new threat from
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Speaker 6: the Hoofy rebels as you mentioned, to disrupt maritime trade
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Speaker 6: related to Saudi Arabia. President Trump was asked about this.
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Speaker 6: He said that if it happens, we will take care
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Speaker 6: of it. Yeah. Of course oil disruption is large on
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Speaker 6: the President's radar as well.
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Speaker 2: That's the one reaction we're seeing in the market as
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Speaker 2: the stock market kind of whistles past the graveyard. We're
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Speaker 2: just seeing through this. It seems later today interesting the
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Speaker 2: President's top lieutenants, and by that I mean the Defense
8:50
Speaker 2: Secretary and the Chairman of the Joint Chiefs of Staff,
8:52
Speaker 2: Pete hag Seth, General Dan Kane, will be on Capitol
8:55
Speaker 2: Hill to make the case for paying for this war.
8:59
Speaker 2: And there's a big ask for a lot more money.
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Speaker 2: This is the sixty seven billion dollars that they're talking about,
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Speaker 2: or is this the full funding for the year in
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Speaker 2: excess of a trillion dollars or both.
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Speaker 6: I believe it is the fiscal year twenty twenty seven
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Speaker 6: budget appropriations. The appropriations process, and they have to make
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Speaker 6: the case, essentially to loammie groups that it is worth
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Speaker 6: it to keep funding the conflict. At one time, this
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Speaker 6: one and have been considered controversial. It would have been
9:22
Speaker 6: an easy vote to get more money toward our defense
9:26
Speaker 6: on both sides of the aisle. But right now we
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Speaker 6: know Democrats are really pushing for those curves when it
9:30
Speaker 6: comes to how President Trump is conducting.
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Speaker 2: Yes, they might not even been able to pass the NDAA.
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Speaker 2: It looks like we'll find out that procedural next twenty
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Speaker 2: four to forty eight hours here with a lot to cover,
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Speaker 2: of course, Tyler Kendall, thank you, Tyler. It's not groundhog Day,
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Speaker 2: but the story's not changing real fast. Stay with us
9:46
Speaker 2: on Balance of Power. We'll have much more coming up
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Speaker 2: after this.
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Speaker 2: Watching Wall Street for us every day here on Balance
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Speaker 2: of Power. Whether the chips are in or out, Darlene
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Speaker 2: is in. We talked about this a little bit at
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Speaker 2: the end of the day yesterday. It was kind of
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Speaker 2: a late breaker. She sat down. This is the late
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Speaker 2: Senator Lindsey Graham's sister, Darlene, the caretaker of the seat.
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Speaker 2: Then he wondered if she would run for the real
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Speaker 2: job as the president, and apparently the governor urged her to.
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Speaker 2: President Trump was talking about this at the time, and
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Speaker 2: sure enough, the sister of the late Republican Senator Darlene Graham.
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Speaker 2: So she plans to run on the midterm elections, and
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Speaker 2: she dropped the news on the Hannity program last evening
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Speaker 2: on Fox.
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Speaker 7: Listen, I feel like I can do it. I feel
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Speaker 7: an inner piece about it. Will it be difficult, yes, absolutely.
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Speaker 2: Inclient to get in or have you even made a
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Speaker 2: final decision.
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Speaker 7: I've made a decision.
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Speaker 2: You're in.
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Speaker 1: Yeah, I'm in.
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Speaker 4: I'm in.
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Speaker 7: I can't see it any other way.
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Speaker 2: I'm in, she said, although he said it first. That's
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Speaker 2: the way you do these things. You pick the interviewer,
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Speaker 2: drop the news like that. Hannity won the day, and
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Speaker 2: the question is can she win the seat. It's on
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Speaker 2: the terminal right now, and we play it to our
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Speaker 2: political panel. We've got a good one for you today.
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Speaker 2: Bloomberg Politics contributor Jeanie Shanzano is with us, of course,
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Speaker 2: our democratic analyst and democracy visiting fellow at Harvard Kennedy
11:37
Speaker 2: School's Ash Center. And it's an honor to welcome Leslie
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Speaker 2: shed to the early show. President of Rising Communications are
11:43
Speaker 2: Republican strategist. We call this Hour of the Elephants sometimes welcome.
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Speaker 2: It's great to have you. That's not a political reference.
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Speaker 2: We got to talk about Darlene and Leslie. I'm going
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Speaker 2: to start with you because you know you do Lindsey
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Speaker 2: Grehm very well. You actually just told me your intern
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Speaker 2: in his office, going back to the glory days, exactly
12:02
Speaker 2: can Darlene carry the torch here?
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Speaker 8: I mean I think she can. She's got the president's endorsement.
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Speaker 8: That's going to be huge in South Carolina. I'm from
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Speaker 8: South Carolina. I can tell you that Donald Trump is
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Speaker 8: incredibly popular in the state, so I think that will
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Speaker 8: help him help her. I also think that, you know,
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Speaker 8: people are going to want to honor his legacy. He
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Speaker 8: was a legend in South Carolina, and I think that
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Speaker 8: they will see, you know, putting his sister in the
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Speaker 8: seat as a way to honor that legacy. My question
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Speaker 8: will be, as she wins, does she like it? Because
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Speaker 8: politics really isn't for the faint of heart, right.
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Speaker 2: I'm not sure I had a sense of that she
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Speaker 2: was ready to really start living this lifestyle in that interview.
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Speaker 2: This is a very delicate moment for her. She just
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Speaker 2: found out about her brother and now you've got the
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Speaker 2: president on the phone and the world's swirling around you.
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Speaker 2: Does she clear the field? I don't think she clears
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Speaker 2: the field. Ralph Norman's going to hang in there.
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Speaker 8: Look, if you're Ralph Norman, you've lost your chance at governor,
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Speaker 8: you're going to lose this congressional cidity.
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Speaker 7: Why not try it?
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Speaker 8: And even with Russell Fry, they've changed the rules so
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Speaker 8: that he's going to be if he wins this primary,
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Speaker 8: he would be allowed to be on the ballot both
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Speaker 8: for his congressional seat and for the Senate seat, and
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Speaker 8: then he can pick a twenty one. So it's kind
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Speaker 8: of a win win situation here. And you know, in
13:15
Speaker 8: South Carolina we tend to have senators that sit in
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Speaker 8: their seat for quite some time. This could be a
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Speaker 8: once in a generation opportunity. I think that I think
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Speaker 8: she won't clear the field, but I think she's the presumptive,
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Speaker 8: not me.
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Speaker 7: I think she wins.
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Speaker 2: What do you think of this, Geniu. It's one thing
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Speaker 2: to win, it's another thing to govern. Would Darlene Graham
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Speaker 2: make a good senator? First, She's got.
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Speaker 9: To win the primary. And I think the idea that
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Speaker 9: Donald Trump's endorsement matters so much in South Carolina, we
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Speaker 9: just saw that that's not the case in the governor's
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Speaker 9: election or the primary for the Republicans there, And so
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Speaker 9: what I think this is is a big test for
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Speaker 9: Donald Trump's power of endorsement. We're seeing that out by
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Speaker 9: the way, in the primaries in Arizona today, over one
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Speaker 9: hundred days Joe Matthew until the midterm. It's getting exciting,
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Speaker 9: and we're seeing it in South Carolina. And of course,
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Speaker 9: just last week we had, now this was before he
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Speaker 9: endorsed Darlene, this was just after Lindsey Graham passed. We
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Speaker 9: had an Emerson College poll and the results were striking
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Speaker 9: because sixty percent of South Carolinian's Republicans said either Donald
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Speaker 9: Trump's endorsement would have no impact on their vote or
14:29
Speaker 9: their support for a candidate or would make them less
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Speaker 9: likely to vote for a candidate sixty percent. Only forty
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Speaker 9: one percent said that it would move them to support
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Speaker 9: the candidate. Those are stunning numbers in a state as
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Speaker 9: read as South Carolina. And you know the other thing
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Speaker 9: is that if the power was so great, she would
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Speaker 9: have cleared the field. And so you have seen she
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Speaker 9: cleared Nancy Mace, that's for sure. But she hasn't cleared
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Speaker 9: Ralph Norman, who was on News Nation the other day.
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Speaker 9: She hasn't cleared Russell Fry. She hasn't even cleared Mark Lynch,
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Speaker 9: who is out there, by the way, saying she might
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Speaker 9: not be eligible to run because she didn't vote in
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Speaker 9: the last two primaries. I found no evidence of that,
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Speaker 9: by the way. So there's a lot there. She's got
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Speaker 9: to win this thing. And do Democrats come in there?
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Speaker 9: Probably not at South Carolina, but if this is a really,
15:21
Speaker 9: really divisive primary, Democrats may be more inclined to spend
15:25
Speaker 9: a little bit there.
15:27
Speaker 2: Wow, that's okay, So we got a lot there, Jeanie.
15:33
Speaker 2: If you haven't seen the Nancy Mace video, I was
15:36
Speaker 2: going to play a producer, James won't let me. You've
15:38
Speaker 2: gotta bleep it, and it's getting all kinds of trouble here.
15:41
Speaker 2: She's clearly moving on to the second career. You know,
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Speaker 2: I'll tell you when we talk about the tenure in
15:49
Speaker 2: South Carolina, Leslie, this seat was held by Lindsey Graham
15:54
Speaker 2: and strom Thurman for a combined seventy years exactly.
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Speaker 8: I mean, that's why I'm saying, you know, I'm not
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Speaker 8: surprised that people are jumping in. I don't think that
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Speaker 8: that really signifies, you know, that Darlene is not going
16:07
Speaker 8: to be the at least the presumptive leader right now
16:10
Speaker 8: in the race. I just think, you know, it's a
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Speaker 8: once in a generation type of a seat.
16:14
Speaker 2: Is she up for? Actually, maybe I should ask it differently.
16:17
Speaker 2: Do the gloves come off in this primary? I mean
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Speaker 2: South Carolina, need to tell you is known for really
16:22
Speaker 2: tough politics. Oh, I think it's super negative. Do you
16:25
Speaker 2: go after a Trump endorsed a member of the Grand Family.
16:30
Speaker 8: I think you'll see something where the others that are
16:33
Speaker 8: running will try to teut their Trump credentials. They're already
16:36
Speaker 8: starting to do that, right talk about how they work
16:38
Speaker 8: with the president. They like the president, they've helped the president.
16:41
Speaker 8: You know, get his agenda a cross out there. I
16:43
Speaker 8: wouldn't be surprised if there is some light discussion or
16:46
Speaker 8: hit on the fact that, you know, she doesn't have
16:48
Speaker 8: a lot of experience, she doesn't necessarily fully understand how
16:51
Speaker 8: policy works.
16:53
Speaker 7: But I would be really surprised.
16:55
Speaker 8: I just don't think it's a good look for you know,
16:58
Speaker 8: men in South Carolina beating up on a woman who
17:01
Speaker 8: just lost her brother. And it's such a short condensed
17:04
Speaker 8: time period. I think that if this was going for
17:06
Speaker 8: you know, two or three months, it would be different.
17:08
Speaker 8: But I think right now it's really going to be,
17:11
Speaker 8: you know how many people like, it's going to be
17:13
Speaker 8: about voter turnout, and it's going to be about name
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Speaker 8: I D.
17:17
Speaker 2: Name I D is one thing that she has. But
17:19
Speaker 2: I suppose you could say that Ralph Norman does as well.
17:22
Speaker 2: To your point, though, if this doesn't work out for him,
17:24
Speaker 2: he's done after this Genie you mentioned Arizona, And I
17:28
Speaker 2: just want to put a finer point on this because
17:30
Speaker 2: we've got primary day once again, Where's Rick Davis? Is
17:34
Speaker 2: he out there running these races? An open seat in
17:36
Speaker 2: the first district? This is David Schweikert is going to
17:39
Speaker 2: run for governor here, and it's said to be one
17:42
Speaker 2: of the most competitive swing states in the country. Ami
17:45
Speaker 2: Shaw went from this very packed primary but lost to
17:49
Speaker 2: Schweikert in the general election and is now running again
17:53
Speaker 2: d triple C though the establishment behind Marlene Galan Woods,
17:58
Speaker 2: a former TV journalist. I guess they all run for
18:01
Speaker 2: office out there in Arizona. Jeanie, how are you looking
18:03
Speaker 2: at this contest?
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Speaker 9: This means Joe, you're next, You're gonna have to run.
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Speaker 2: I don't think so, do.
18:12
Speaker 9: You know? I think it's just fascinating because I think
18:15
Speaker 9: the big marker here is what Andy Biggs is doing.
18:18
Speaker 9: Though he's expected to win the primary. He does have
18:21
Speaker 9: Donald Trump's endorsement. But boy Joe Matthew was he running
18:24
Speaker 9: away from it. You can see him sort of rereading
18:28
Speaker 9: this line. He's out there, which may be why our
18:30
Speaker 9: Frienderick Davis isn't here today talking about how his love
18:34
Speaker 9: for John McCain. He's out there today talking about boy
18:37
Speaker 9: Joe Matthew will work with Hakeem Jeffries. You know that
18:41
Speaker 9: is that is stunning from Andy Biggs, And it seems
18:46
Speaker 9: pretty clear that he learned from Carrie Lake, because if
18:49
Speaker 9: you recall two years ago when people raised the idea
18:52
Speaker 9: of her bringing in the McCain coalition these mill round voters.
18:55
Speaker 9: She dismissed that out right and lost to Reuben Diego.
18:59
Speaker 9: So you see, Biggs is not dismissing that, particularly this year.
19:03
Speaker 9: And I think, you know, it just speaks to the
19:05
Speaker 9: fact that this is the state that is purple, and
19:09
Speaker 9: these Republicans cannot run in the general, in particular too
19:12
Speaker 9: far to the right and take these moderate Republicans for granted.
19:16
Speaker 9: So I suspect we have Rick Davis doing something out there.
19:20
Speaker 9: I won't say what.
19:23
Speaker 2: I'm not trying to float anything. He's probably at a
19:25
Speaker 2: party right now, but this is important. David Schweikert, Andy Biggs,
19:30
Speaker 2: You've got two very different Republican flavors here. Who should
19:33
Speaker 2: Katie Hobbs be worried about.
19:35
Speaker 8: I mean, I think they'll both be really great candidates.
19:38
Speaker 8: You know, you were talking about how Arizona is a
19:40
Speaker 8: purple state. I think it's a purple state in a
19:42
Speaker 8: different way than a Michigan is or Wisconsin is. And
19:46
Speaker 8: I also think too that you know they're going to
19:49
Speaker 8: they're going to be a state that was most directly
19:51
Speaker 8: impacted by the just insane amount of illegal immigrants that
19:55
Speaker 8: were coming over during the Biden administration and how secure
19:58
Speaker 8: the border feels now. While it seems to be a
20:01
Speaker 8: topic that's kind of been forgotten in the news cycle
20:03
Speaker 8: because it got cleaned up, I think it will still
20:06
Speaker 8: resonate with the people of Arizona. And I think that,
20:08
Speaker 8: you know, a Republican will win the state in the
20:10
Speaker 8: at the end of the day.
20:12
Speaker 2: Well, you know, Andy Biggs has quite a story to
20:15
Speaker 2: tell as a member of the Freedom Caucus. Genie, is
20:19
Speaker 2: this suggestion that he is too far right for what
20:22
Speaker 2: you describe as a purple state.
20:25
Speaker 9: I think that's his suggestion based on the fact he's
20:28
Speaker 9: hugging Hakeem Jeffries and John McCain. It's quite startling. And
20:32
Speaker 9: you heard Swiper in the debate was saying things like,
20:35
Speaker 9: aren't you tired of losing speaking to this? But I
20:38
Speaker 9: will tell you Joe Katie Hobbs is going to be
20:41
Speaker 9: a formidable candidate for whichever and I suspect it maybe
20:44
Speaker 9: get Biggs her statement, and she's been saying this a
20:47
Speaker 9: lot lately. If Biggs wins Arizona, Arizona will be the
20:51
Speaker 9: first state to have an election denier as governor. That
20:55
Speaker 9: is quite a swipe at Biggs, and it's going to
20:57
Speaker 9: be hard for him to run away from that, no
20:59
Speaker 9: matter how much he tries to hug Hi King, Jeffries
21:02
Speaker 9: and John McCain.
21:04
Speaker 2: Well, I've got a big number for both of you.
21:06
Speaker 2: It's four dollars and two cents. That's the national average
21:10
Speaker 2: for gas today, at least according to Triple A, and
21:12
Speaker 2: it has been rising on a daily basis as Crew
21:15
Speaker 2: does the same. Leslie, how worried are you about the
21:18
Speaker 2: Iran war continuing into the fall when people are starting
21:21
Speaker 2: to make decisions and watching prices remain under pressure here
21:24
Speaker 2: like this?
21:24
Speaker 8: I mean, honestly, I am worried. I think that at
21:28
Speaker 8: the end of the day, most voters are driven by
21:30
Speaker 8: pocketbook issues, by how much it costs to get food
21:32
Speaker 8: on the table and take their kids to their soccer,
21:35
Speaker 8: you know games. I think it's a problem. I do
21:38
Speaker 8: think the President has been trying everything that he can
21:41
Speaker 8: to get gas prices low, to get the straight reopen.
21:44
Speaker 8: The problem is that Iran is essentially a terrorist regime,
21:49
Speaker 8: and I think he is realizing every time he's tried
21:51
Speaker 8: to give them the benefit of the doubt and say, okay, look,
21:54
Speaker 8: you know I don't want to drop more bombs on
21:57
Speaker 8: your cities.
21:58
Speaker 7: I want to stop this.
21:59
Speaker 8: I want to get the Straight reopen so that we
22:01
Speaker 8: can have a nice, free and fair world. And Iran says, no,
22:05
Speaker 8: absolutely not, because they're a terrorist regime. So he's restarted strikes.
22:09
Speaker 8: I think that that's a good strategy. He needs to
22:12
Speaker 8: show them that he is not afraid to bring them
22:14
Speaker 8: to their knees.
22:15
Speaker 2: Ten straight nights of strikes, Genie, do you expect twelve thirteen?
22:19
Speaker 2: How long does this go for?
22:22
Speaker 9: I mean, I think this is going to go indefinitely,
22:24
Speaker 9: and absolutely we should all be scared. As we see
22:28
Speaker 9: the Red Sea, the Straight there is being closed or
22:31
Speaker 9: essentially impassable. This is going to have a huge impact.
22:36
Speaker 9: And I will tell you Donald Trump was right when
22:39
Speaker 9: he said, I've got to sign this ridiculous MoU I'm
22:42
Speaker 9: calling it ridiculous. He didn't because if not, we're going
22:44
Speaker 9: to have an economic disaster. We're going to have an
22:46
Speaker 9: economic disaster.
22:47
Speaker 2: If he doesn't wrap this up, well, man, I'll tell
22:51
Speaker 2: you what. The markets just couldn't care less. Look at
22:53
Speaker 2: the S and P five hundred up one percent NASDAC
22:56
Speaker 2: up one and a half percent, even as crude oil
22:58
Speaker 2: prices jump a half percent. We've got a great panel
23:01
Speaker 2: and they'll be back in our second hour. Leslie Shed
23:04
Speaker 2: Jeanie Shanzino, thank you for the insights. Stay with us
23:06
Speaker 2: on Balance of Power. We'll have much more coming up
23:09
Speaker 2: after this.
23:14
Speaker 1: You're listening to the Bloomberg Balance of Power podcast Kettas
23:17
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23:21
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23:24
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23:27
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23:30
Speaker 10: It's a busy day, a busy week on Capitol Hills,
23:33
Speaker 10: specifically in the House of Representatives, which is racing to
23:35
Speaker 10: get done a long list of things before they break
23:37
Speaker 10: for the August recess. And they're going to try to
23:39
Speaker 10: take that first step today by passing a rule. This
23:42
Speaker 10: is procedural to try to tee up votes on everything else.
23:45
Speaker 10: This is government funding, this is the National Defense Authorization
23:48
Speaker 10: we were just discussing with our political panel, and of
23:50
Speaker 10: course the budget resolution to try to get reconciliation three
23:54
Speaker 10: point zero across the finish line. Also should mention fresh
23:57
Speaker 10: off at Charlie pellet market check stock trading band for
24:00
Speaker 10: is also included all.
24:01
Speaker 2: In the next twenty four to forty eight hours to
24:03
Speaker 2: be so, the Speaker has to defy gravity once again.
24:07
Speaker 2: Can he pull a rabbit out of the hat? We're
24:10
Speaker 2: lucky to have, as I mentioned sometime with the Congressman
24:13
Speaker 2: from Florida, Byron Donald's is with US Republican representing the
24:16
Speaker 2: nineteenth Congressional district and also happens to be a candidate
24:20
Speaker 2: for governor of the Sunshine State. Congressman, welcome, It's great
24:23
Speaker 2: to see you here in our bureau. Thanks for joining
24:24
Speaker 2: us at Bloomberg to be with To start with the
24:26
Speaker 2: we've been walking out on procedure all day today. Before
24:29
Speaker 2: we get to your race. Does the Speaker have the
24:32
Speaker 2: votes for the cr Are we about to get this done?
24:35
Speaker 2: I believe so.
24:36
Speaker 3: I mean, look at the end of the day, we
24:37
Speaker 3: know that the Democrats have been talking for about a
24:39
Speaker 3: month now about wanting to see another government shut down
24:42
Speaker 3: right before the midterm.
24:43
Speaker 2: So think about this.
24:44
Speaker 3: The Democrats would rather shut down the government for political
24:47
Speaker 3: purposes because they have no solution, they have no policy.
24:50
Speaker 3: They're just trying to oppose the president at every turn
24:53
Speaker 3: and they would shut down our government again just for
24:56
Speaker 3: the sake of getting more votes.
24:57
Speaker 2: Are they telling you that behind the scenes, Because we
24:59
Speaker 2: ask Democrats every day and they tell us they remember
25:01
Speaker 2: how bad the last one was and they don't want.
25:03
Speaker 3: To show come on, man, like they're going to tell
25:04
Speaker 3: you what their real plans are.
25:05
Speaker 2: We hear they are telling you behind the scenes. This
25:08
Speaker 2: is what we're hearing.
25:09
Speaker 3: And so to get away from that kind of nonsense,
25:12
Speaker 3: let's just continue government funding until after the elections are over,
25:15
Speaker 3: and then we move from there well.
25:18
Speaker 7: Before we move to your election.
25:19
Speaker 10: In particular, this budget reconciliation package more than ninety billion
25:23
Speaker 10: dollars of spending that.
25:24
Speaker 7: Is not offset by anything. Does that sit well with you?
25:29
Speaker 3: Look, I think we have to do what we need
25:30
Speaker 3: to do for our military members right now, make sure
25:33
Speaker 3: that they have the funding that they need. Secondarily, I
25:35
Speaker 3: believe there's about twelve billion dollars in funding in air
25:38
Speaker 3: for agriculture interest throughout the country. Florida is on that list.
25:42
Speaker 3: Back in February, Florida lost three point five billion dollars
25:46
Speaker 3: worth of crops from the big Arctic freeze that moved
25:49
Speaker 3: through that early week of February. We lost three and
25:52
Speaker 3: a half billion in crops. Florida is slated to receive
25:56
Speaker 3: some of those dollars, but it's also indicative of what's
25:58
Speaker 3: happened to Washington, d C. There is no talking to
26:01
Speaker 3: the Democrats. They don't want to talk about anything constructive.
26:04
Speaker 3: So then reconciliation becomes a vehicle of use in order
26:06
Speaker 3: to get things done for the American people.
26:08
Speaker 2: We saw analysis from Bloomberg Intelligence about the farmers. Specifically,
26:12
Speaker 2: this eleven billion dollars is believed to go to in
26:15
Speaker 2: many cases, particularly for older farmers, to pay off debt.
26:19
Speaker 2: Do you think that we're going to have to have
26:21
Speaker 2: another round here for help for America's farmers if China
26:23
Speaker 2: doesn't start buying soybeans, or if we're not selling white
26:27
Speaker 2: corn across the border to the extent that we hope.
26:29
Speaker 3: I don't think so. But I think it's important that
26:32
Speaker 3: we stabilize our farms here in the United States. In short,
26:35
Speaker 3: we don't want to be in a situation where where
26:37
Speaker 3: we are importing products from overseas. We don't want to
26:40
Speaker 3: be in that position. So farming, agriculture is a bedrock
26:44
Speaker 3: foundation of our country, any country, especially ours. We want
26:47
Speaker 3: to be able to feed our own people. And so
26:49
Speaker 3: what we're doing in Reconciliation three point zero is to
26:52
Speaker 3: make sure that our farming community has the resources they
26:55
Speaker 3: need so we can still put American food on the
26:58
Speaker 3: table for the American people. And to be clear, this
27:01
Speaker 3: is to be something that the Democrats work with us
27:03
Speaker 3: on and they refuse to.
27:05
Speaker 7: So you want to make sure people are fed.
27:07
Speaker 10: People also want to guarantee that they're going to have
27:09
Speaker 10: access to water and access to things like power. Obviously
27:13
Speaker 10: an issue in Florida, specifically around data centers. The man
27:16
Speaker 10: you very well may be up against in November, mister Jolly,
27:20
Speaker 10: has suggested that there should be a data center moratorium
27:23
Speaker 10: in the state of Florida, like we're now seeing in
27:24
Speaker 10: New York. You are arguing for a different approach. Basically,
27:28
Speaker 10: bring your own power. Is that the happy medium? How
27:31
Speaker 10: do you guarantee that that will protect rate payers? Ultimately
27:34
Speaker 10: if data center demand keeps moving higher.
27:37
Speaker 3: Well, a couple of things. One what they did in
27:38
Speaker 3: New York makes no sense at all. It's one of
27:40
Speaker 3: the reasons why capital writ large, not just around AI
27:43
Speaker 3: but in any other industry, is leaving New York because
27:47
Speaker 3: they have stupid regulatory policy that does not allow for
27:50
Speaker 3: capital to flourish. We don't want to see that happen
27:52
Speaker 3: in the state of Florida. Number two, we already have
27:55
Speaker 3: on the book Senate Bill forty four. Governor Desantsus just
27:57
Speaker 3: signed it into law. In our state. Utility rates for
28:01
Speaker 3: Floridians will not go up because of a hyperscale data center.
28:05
Speaker 3: The other thing that's a part of that bill, you
28:06
Speaker 3: have to get a consumptive use permit from our water
28:09
Speaker 3: management districts who are expressly tasked with protecting Florida's aquifers
28:14
Speaker 3: in order for a data center to be constructed, to
28:16
Speaker 3: make sure that they contain water usage to protect Florida's
28:19
Speaker 3: fresh water resources into the future. What I want to
28:22
Speaker 3: see happen on these data centers, if they're allowed to,
28:24
Speaker 3: if they come to Florida, build a closed, looped filtration
28:28
Speaker 3: system on site, so whatever water they do take initially,
28:31
Speaker 3: they recycle and clean that water and keep itself contained
28:35
Speaker 3: on their property. And then the last thing, and I
28:37
Speaker 3: think a lot of Floridians are looking at this proximity listen.
28:40
Speaker 3: I don't want to see a data center outside of
28:42
Speaker 3: my front door. I know Floridians don't want to see
28:44
Speaker 3: one outside of their front door, so making sure that
28:47
Speaker 3: they're away from residential areas just makes common sense. That's
28:50
Speaker 3: the way you do this. What mister Jolly is saying
28:52
Speaker 3: is that he needs to go study a more. He
28:54
Speaker 3: needs to go study and have a moratorium place so
28:56
Speaker 3: he can go study it. The truth is, if you
28:58
Speaker 3: have a governor who knows that economics, who knows how
29:01
Speaker 3: to look at us building schematic, you don't need a
29:04
Speaker 3: year long moratorium. You can make real decisions in real
29:07
Speaker 3: time that are in the best interest of Floridians while
29:09
Speaker 3: also making sure that if you do build one of
29:12
Speaker 3: these centers that it can bring real economic impact in
29:15
Speaker 3: a positive way to the state of Florida. So these moratoriums,
29:19
Speaker 3: they sound good politically, but that's because it's a political
29:22
Speaker 3: answer instead of mitigating the issues that do come along
29:25
Speaker 3: with hyperscale data center.
29:26
Speaker 2: If your bill became law, and this story is really
29:28
Speaker 2: important to our audience at Bloomberg. We talk about it
29:31
Speaker 2: Congressman every day, and as we've traveled the country this
29:33
Speaker 2: midterm cycle, we've really been surprised at the level of
29:36
Speaker 2: nimbiism that we're hearing the data center has become a
29:39
Speaker 2: true political issue. If your bill becomes law, do you
29:43
Speaker 2: embrace data center for job growth, for economic growth?
29:47
Speaker 3: Is this the future of our economy? Well, that's the
29:49
Speaker 3: wrong way to look at it. You have to look
29:50
Speaker 3: at what companies are already doing. Every company on the planet,
29:53
Speaker 3: every industry, and the planet is already embracing AI.
29:56
Speaker 2: It's happening right now.
29:57
Speaker 3: The question is do we have enough bandwidth to support
30:00
Speaker 3: all the uses? And this is where from a national
30:03
Speaker 3: security perspective, the Trump administration is very clear. The Chinese
30:07
Speaker 3: do not want us to build out the infrastructure because
30:10
Speaker 3: they the Chinese want to build that infrastructure. So all
30:13
Speaker 3: the data on the face of this earth is warehoused
30:15
Speaker 3: in China. I don't trust the Chinese. I don't want
30:18
Speaker 3: American data over there. I would rather us have common
30:21
Speaker 3: sense approaches like protecting rate payers and protecting water resources
30:24
Speaker 3: here in the United States, so that we actually make
30:27
Speaker 3: sure we warehouse our data. The other piece is that
30:30
Speaker 3: compute power is going to continue to expand in the
30:33
Speaker 3: United States. And so if you're a small business and
30:36
Speaker 3: now you're having to pay more for compute power because
30:38
Speaker 3: we don't have the necessary infrastructure.
30:40
Speaker 2: Who does that help?
30:41
Speaker 3: I'll do you want better any American who's using AI
30:45
Speaker 3: right now, and by the way, most Americans are. If
30:47
Speaker 3: you're doing a Google search today that's not being run
30:49
Speaker 3: by Google, Gemini, not the old search engine. If you're
30:52
Speaker 3: on Netflix and they recommend to show to you, that's AI.
30:55
Speaker 3: If you're in the Amazon marketplace and they recommend a
30:57
Speaker 3: product to you, that's AI. AI is being used in
31:01
Speaker 3: ways that most people don't even see or understand.
31:04
Speaker 2: So it's already here.
31:05
Speaker 3: The question is are we going to have the necessary
31:08
Speaker 3: infrastructure in order to manage to compute power that is
31:12
Speaker 3: going to continue to grow? And what we're already seeing
31:14
Speaker 3: when we have the access to compute power with AI,
31:17
Speaker 3: it actually is demonstrating some positive impacts in our economy
31:21
Speaker 3: that are helping companies stabilize their income statements, stabilize their
31:24
Speaker 3: balance sheets, stabilize costs for end users. And I think
31:28
Speaker 3: that's what people truly do want to see happen.
31:29
Speaker 10: Well, and you mentioned that there are alreadys law on
31:31
Speaker 10: the books in Florida under Governor DeSantis. I would imagine
31:34
Speaker 10: you would like to see that continue. When we consider
31:37
Speaker 10: your potential governorship, though, how should we expect it to
31:40
Speaker 10: differ from the administration of Rondsantis.
31:43
Speaker 2: A couple things.
31:43
Speaker 3: One, law and order is still going to be the
31:45
Speaker 3: standard like it has been under Governor DeSantis. Number two,
31:48
Speaker 3: we are going to have a limited government, low tax environment,
31:50
Speaker 3: low regulatory environment. We want to continue to have, frankly,
31:54
Speaker 3: the ecosystem where the Florida dream has been built upon.
31:57
Speaker 3: We're going to keep all that in place. Governor des
32:00
Speaker 3: has done a tremendous job leading our state. What comes
32:03
Speaker 3: next for the next governor is how do you balance
32:05
Speaker 3: the growth that has come to Florida with our environment,
32:09
Speaker 3: making sure we maintain conservation areas, we protect our water rays,
32:13
Speaker 3: we finish Everglade's restoration, we provide fresh water, have a
32:17
Speaker 3: plan for fresh water into the future, even though people
32:21
Speaker 3: are coming to Florida because we are quickly becoming a
32:24
Speaker 3: major economic power, not just in the United States but
32:27
Speaker 3: in the world. So how do you balance that? That's
32:29
Speaker 3: going to be the question for Florida's next governor. It's
32:31
Speaker 3: not a matter of differences from Honda Santis. It's how
32:34
Speaker 3: do you build on the successes that he's already brought.
32:36
Speaker 3: And this is where My career is unique. I spent
32:38
Speaker 3: seventeen years in the financial industry, four years in the
32:42
Speaker 3: state House. I chaired the Insurance and Banking subcommittee in
32:45
Speaker 3: the Florida House. You want to talk property and capsualty insurance,
32:47
Speaker 3: I don't need talking points from anybody. I know the
32:50
Speaker 3: subject matter because I chaired that committee and I spent
32:52
Speaker 3: time in the business world, so I know that subject matter.
32:55
Speaker 3: The next governor has to know how to make the
32:58
Speaker 3: regulatory changes to impact affordability in our state while also
33:02
Speaker 3: planning for the state's future growth based upon the same
33:05
Speaker 3: common sense conservative principles that's made Florida the envy of
33:08
Speaker 3: the other forty nine states.
33:10
Speaker 2: You're going to have a debate in the Republican primary.
33:12
Speaker 3: Probably not. I mean, those guys are still in single digits. Yeah,
33:15
Speaker 3: and if they you know, we released polling today. Our
33:19
Speaker 3: internal numbers have US at fifty three. Another public poll
33:22
Speaker 3: came out had US at forty four. I think it was.
33:24
Speaker 3: We had one come out last week had US at
33:26
Speaker 3: forty eight. These candidates, they're still in single digits. So
33:30
Speaker 3: at this point, the Republican primary is going to be
33:32
Speaker 3: decided in twenty eight days. Why would I elevate you
33:36
Speaker 3: when you couldn't elevate.
33:37
Speaker 10: Yourself just quickly after this primary is over, do you
33:40
Speaker 10: expect Ron de Santis will endorse you? Do you think
33:42
Speaker 10: he'll campaign with you ahead of November?
33:44
Speaker 3: Would love to have Governor Desanti's endorsement and working with
33:48
Speaker 3: him and campaigning out there on the trail. I will
33:50
Speaker 3: tell you the thing I'm looking forward to is debating.
33:52
Speaker 3: David Jolly, you were talking about debates. Those are the
33:55
Speaker 3: debates I'm looking forward to, because then it's going to
33:57
Speaker 3: be about the contrast of vision for the future of
34:00
Speaker 3: our state. And I believe that Governor DeSantis completely agrees
34:04
Speaker 3: with us about the next steps for Florida, and so
34:07
Speaker 3: I look forward to having his endorsement and being out
34:09
Speaker 3: there on a campaign trail with them.
34:10
Speaker 10: All Right, Florida gubernatorial candidate and current Congressman from Florida,
34:13
Speaker 10: Byron Donald's back with us on Lumberg TV and Radio.
34:16
Speaker 10: Thank you so much for joining us in our Washington,
34:18
Speaker 10: d C studio and to react to the conversation we
34:21
Speaker 10: just had with the congressman we want to bring back
34:23
Speaker 10: in our political panel. Jeanie Schanzeno and Leslie shed are
34:26
Speaker 10: still with us Genie to begin with you. Obviously, Congressman
34:31
Speaker 10: Donald's is very much looking forward to debating mister Jolly
34:35
Speaker 10: at some point. Of course, Jolly still maintains the Republican
34:39
Speaker 10: primary needs to finish up first.
34:42
Speaker 7: In a state like Florida, how close would.
34:44
Speaker 10: You expect it to be between a Republican and a
34:49
Speaker 10: Democrat ultimately?
34:52
Speaker 9: Yeah, I mean, I think the environment this year is
34:55
Speaker 9: better for Democrats than it has been, but I still
34:57
Speaker 9: think it's an uphill battle. And I thought it was
35:00
Speaker 9: fascinating the discussion you had about the data centers. That
35:05
Speaker 9: is a huge, huge issue. It's a big issue in Florida,
35:07
Speaker 9: it's a big issue across the country. I'm hoping they
35:10
Speaker 9: debate and we hear more about that. The other thing
35:13
Speaker 9: I hope for Florida is we hear more about the
35:15
Speaker 9: cost of insurance, particularly housing insurance, which is a huge
35:20
Speaker 9: issue there. And then of course the economy overall, which
35:23
Speaker 9: impacts all of us.
35:26
Speaker 2: What's your thought, Leslie, as the data center becomes a
35:30
Speaker 2: primary political issue a year ago, I'm not sure you
35:34
Speaker 2: could have seen this one coming. But the spending has
35:35
Speaker 2: been so robust, and it's impacting so many communities that
35:38
Speaker 2: I know Congress with donald's is not one of them,
35:41
Speaker 2: but even some Republicans are worried about, for instance, rural
35:44
Speaker 2: areas being overtaken.
35:45
Speaker 7: It's everywhere.
35:46
Speaker 8: And you know, I am am an advisor to the
35:49
Speaker 8: Republican Attorney's General Association, and this is something that is
35:52
Speaker 8: coming up in almost all of these races, this discussion
35:55
Speaker 8: about data centers. The problem is we need them right
35:59
Speaker 8: as AI grows, and especially as we are able to
36:02
Speaker 8: develop more and more you know, substantive quantum computing. We
36:06
Speaker 8: need data centers. So the question is how are we
36:08
Speaker 8: going to be able to build them in a way
36:10
Speaker 8: that is responsible to communities, you know, and that doesn't
36:15
Speaker 8: make voters angry? And I think you're seeing that on
36:17
Speaker 8: both sides of the aisle right now.
36:20
Speaker 10: Well, clearly, Congress McDonald's is against the notion of moratoriums.
36:24
Speaker 10: He thinks that New York made a bad decision, But
36:27
Speaker 10: would you be expect surprised to see that spread to
36:31
Speaker 10: other states that idea of moratorium even to red ones.
36:34
Speaker 8: You know, I have to tell you, in my limited
36:36
Speaker 8: experience with this, it doesn't really feel like a part
36:38
Speaker 8: is an issue right now to me. You hear some
36:41
Speaker 8: Democrats that are supportive some Republicans and then flip flops
36:44
Speaker 8: on the other side. Right, I haven't seen it really
36:46
Speaker 8: solidify as a Republican or red state versus blue state issue.
36:50
Speaker 8: I do think it is shortsighted to create a moratorium.
36:53
Speaker 2: I understand the concerns.
36:54
Speaker 7: I want to make sure that.
36:55
Speaker 8: We are building these things, that we are building them
36:58
Speaker 8: in a respectful and you know, in a way. But
37:02
Speaker 8: the idea that somehow you can just say no data centers,
37:04
Speaker 8: it's just not realistic.
37:06
Speaker 2: There's a lot of money at stake here. The big question,
37:09
Speaker 2: of course, Kaylee, is about whether compute becomes commoditized and
37:12
Speaker 2: becomes a much cheaper thing without the need for such
37:15
Speaker 2: massive data centers, and it's going to take some time
37:17
Speaker 2: to answer those questions. Big thanks to our panel for
37:20
Speaker 2: swooping in after our conversation with the Congressman, Jeanie shanz
37:23
Speaker 2: Nol Bloomberg Politics contributor, our Democratic analyst, and Leslie shed
37:27
Speaker 2: Republicans strategist Rising Communications. We thank you both so much.
37:34
Speaker 2: Thanks for listening to the Balance of Power podcast. Make
37:37
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37:46
Speaker 2: Eastern at Bloomberg dot com.